Some of my friends asked me, “Richy, why are you writing only about your family and friends these days?” They know that these two are my weaknesses. My sister constantly tells me, "Grow up Richy, grow up!" You know why? Because, to her, I am still a kid, her youngest brother. She teases me like anything, and I just love that. She is a lecturer. Her 2-years-young kid Johan is ditto like her. Very naughty and smart. My sister suffered a lot for me and I troubled her for a long time:-( And my dad used to kick me whenever I hit her. To my family, my sister is first. I call her 'chechi'. I am blessed to have a sister like her. She is as loving-n-caring as my mom. All over my biceps, there are pinch marks, presented by my sister when I was a naughty, lazy bum.
My dear loving sister, u are also lucky to have a younger brother like me:-) And I am sure that even if I get married, you will continue to tease and pinch me. That is you, 'my chechi'!
Thursday 4 December 2008
The person I admire extreme in my life
Why should we admire person? My answer is very simple. If I admire a person it means that personality influenced me very much. I admire my chachen. Oh... Sorry you don’t know who is chachen, that’s my bro. Roshen D Alexander. He is a lawyer. We have 7 years difference. He is my best friend. Only to him I share about my crushes and break-ups, and my ex-girlfriends. I am lucky that I have a brother like him. It’s not a general statement; he used to kick me till my 12 standard. And I am sure if I do anything wrong in future he will bang me, even if get marry J
Chacha you rock. If you wouldn’t beat me when I was young, I don’t know where I would be. So keep on hitting me. Then only I will learn. I owe him my life.
Chacha you rock. If you wouldn’t beat me when I was young, I don’t know where I would be. So keep on hitting me. Then only I will learn. I owe him my life.
My life in Mumbai.
Hmmm … after a long time, I am writing something about my thoughts. Basically,I didn’t have the time to sit and write. I am not acting busy. After my IIJNM life, I directly entered the corporate world. A business journalist, that is my tagline. I got what I dreamt. But, still, there is a looooooooooong way to go. May 15, 2008, I reached Mumbai, India’s trade centre, the most hectic metro in the country. I had little arrogance in my talk with my friends, who are located in different parts of the country, that I am working in Mumbai. Luckily, I got a superb place to stay, YMCA (Young Men’s Christian Association). It is in South Mumbai. (The most happening place). Here, I have a lot of friends including mallus. It’s a calm and quiet place. This place gives me a sense of tranquility. Here, we have a health club and a swing pool, which I simply can’t miss a single day! Honestly, I don’t know swimming. But I enjoy watching the city's HOT chicks swimming. My greatest hangouts are Café Coffee Day, Kalpana Bar, Marine Lines, Pizzaria, and Totos. And I go to church along with my friends. Kalpana bar and CCD are our regular places. That is only because these places are a bit affordable than others. I don't spend too much. Still, I don’t have much bank balance. I usually go with my good buddies in the hostel: Ajith, working with a good construction firm; Arjun, my room mate, working as Assistant manager with ‘Knight Frank,’ that is very famous in the hostel because of him; Rosh, an investment banker, working as the Assistant Vice President with a private firm . I have a plan to write a special blog on my hostel life, and I'll post it soon…
My office is hardly 10 minutes away from my hostel, by fast train. Train journey is really adventurous, public don’t care about your designation. We all are സെയിം in the train. I think I improved my Hindi, little bit. My work is good, meeting big guys, writing features. I don’t have any complaints about my work. I got a very good team. I already started tasting world’s most expensive drinks. But I can justify myself, that is part of my job, I cover alcoholic beverages.
These all are fine. But one fine day I was totally fucked up. That is November 26, 2008. Mumbai terror attack. I literally missed being a victim of the attack as it started hardly 15 minutes after I left the place. But I am not going to write a description of the blast and attack coz I've already written a blog on that. The irony is that even after the attack, the security check is very bleak. Cops are busy chatting with female cops or dozing. Actually, I want to abuse them on their face. They are proud of themselves, speak only marati, and don’t pay to the shoe polishing guys. Just ചെവ് pan and spit on the wall. Yuk… wearied bastards. At this point of time, I remember a famous quote by Paul Wilkinson “Fighting terrorism is like being a goalkeeper. You can make a hundred brilliant saves but the only shot that people remember is the one that gets past you.” Any way, that is not applicable to us.
People are actively participating in demonstrations, holding pluck cards. That all is going to be only for few days. We should start taking initiatives. I am sick and tired of Mumbai. To whom do we say, 'wake up India'? Everybody should say to it to oneself. I know that I don’t have any guarantee for my life. But as a citizen of India, I have the right to say that, I don’t want these bloody politicians, these F*&@ %#s just spoiling India. Next time when we go for voting, remember that our votes are precious and don’t waste them. Politics is an art, it’s a service! But today, it’s a burden to the country. I am stopping here.
“Morality is always the product of terror; its chains and strait-waistcoats are fashioned by those who dare not trust others, because they dare not trust themselves, to walk in liberty.” ...by Aldous Huxley
My office is hardly 10 minutes away from my hostel, by fast train. Train journey is really adventurous, public don’t care about your designation. We all are സെയിം in the train. I think I improved my Hindi, little bit. My work is good, meeting big guys, writing features. I don’t have any complaints about my work. I got a very good team. I already started tasting world’s most expensive drinks. But I can justify myself, that is part of my job, I cover alcoholic beverages.
These all are fine. But one fine day I was totally fucked up. That is November 26, 2008. Mumbai terror attack. I literally missed being a victim of the attack as it started hardly 15 minutes after I left the place. But I am not going to write a description of the blast and attack coz I've already written a blog on that. The irony is that even after the attack, the security check is very bleak. Cops are busy chatting with female cops or dozing. Actually, I want to abuse them on their face. They are proud of themselves, speak only marati, and don’t pay to the shoe polishing guys. Just ചെവ് pan and spit on the wall. Yuk… wearied bastards. At this point of time, I remember a famous quote by Paul Wilkinson “Fighting terrorism is like being a goalkeeper. You can make a hundred brilliant saves but the only shot that people remember is the one that gets past you.” Any way, that is not applicable to us.
People are actively participating in demonstrations, holding pluck cards. That all is going to be only for few days. We should start taking initiatives. I am sick and tired of Mumbai. To whom do we say, 'wake up India'? Everybody should say to it to oneself. I know that I don’t have any guarantee for my life. But as a citizen of India, I have the right to say that, I don’t want these bloody politicians, these F*&@ %#s just spoiling India. Next time when we go for voting, remember that our votes are precious and don’t waste them. Politics is an art, it’s a service! But today, it’s a burden to the country. I am stopping here.
“Morality is always the product of terror; its chains and strait-waistcoats are fashioned by those who dare not trust others, because they dare not trust themselves, to walk in liberty.” ...by Aldous Huxley
This is more than enough
From
Richy D Alexander
MUMBAI
To
Dr. Manmohan Singh
Prime Minister of India
New Delhi
Sub: This is more than enough
Dear Prime Minister,
Today is December 4, 2008, exactly one week after the Mumbai terror attack. I don’t want to waste your time. The main intention of this letter is to convey my agony to you. I know you have lot of things to do; you are not in a situation to sit and relax. But I’ll take only 10 minutes.
I was saved from the terror attack by a hair’s breadth and am still unable to recover from that shock. I am a young Journalist, hardly 23-years old, working with a business magazine in Mumbai. When I got into the train to Mumbai from Kerala, I had big dreams. Now I am scared of this place.
I can see a lot of cops at the railway station. But the saddest part is there is no proper checking at any of the major stations. Metal detectors are just for the namesake. I am not making a common statement generally made by people. I have proper grounds for that. Last night, RDX was found at the CST station, for which the cops had a funny explanation. Can you guarantee me and people that everything is fine after the single commando operation?
Now people of Mumbai are in good fortitude, but it will diminish within a week. We need a long-term solution, for which we need a good system, and the drivers of this system should be eligible, capable and vivacious. Right now, we don’t have any leaders with these qualities. Even if we have, they are scapegoats of Indian’s biggest terror group - the POLITICIANS. Should we not rip-off and throw these nuts? Aren’t people sick and tired of gory political drama? Are we just vote banks? We have the right to question these political terrorists. People should nab these futile creatures. Instead of lighting candles, everybody should go and visit the victims of the attack.
I am not grudging. We can do a lot. But we are not doing. If we do not do anything now, tomorrow, the assailants will come and take our country for a toss. We have good bureaucrats. Political drama is more than enough for now. Dear Sir, the whole country is with you. For a noble reason, for my country, I am ready to sacrifice my life and my family. Because I love my India.
Jai Hind.
Thank you for the consideration
Yours truly,
Richy D Alexander
Mumbai
richyjournalist@gmail.com
Richy D Alexander
MUMBAI
To
Dr. Manmohan Singh
Prime Minister of India
New Delhi
Sub: This is more than enough
Dear Prime Minister,
Today is December 4, 2008, exactly one week after the Mumbai terror attack. I don’t want to waste your time. The main intention of this letter is to convey my agony to you. I know you have lot of things to do; you are not in a situation to sit and relax. But I’ll take only 10 minutes.
I was saved from the terror attack by a hair’s breadth and am still unable to recover from that shock. I am a young Journalist, hardly 23-years old, working with a business magazine in Mumbai. When I got into the train to Mumbai from Kerala, I had big dreams. Now I am scared of this place.
I can see a lot of cops at the railway station. But the saddest part is there is no proper checking at any of the major stations. Metal detectors are just for the namesake. I am not making a common statement generally made by people. I have proper grounds for that. Last night, RDX was found at the CST station, for which the cops had a funny explanation. Can you guarantee me and people that everything is fine after the single commando operation?
Now people of Mumbai are in good fortitude, but it will diminish within a week. We need a long-term solution, for which we need a good system, and the drivers of this system should be eligible, capable and vivacious. Right now, we don’t have any leaders with these qualities. Even if we have, they are scapegoats of Indian’s biggest terror group - the POLITICIANS. Should we not rip-off and throw these nuts? Aren’t people sick and tired of gory political drama? Are we just vote banks? We have the right to question these political terrorists. People should nab these futile creatures. Instead of lighting candles, everybody should go and visit the victims of the attack.
I am not grudging. We can do a lot. But we are not doing. If we do not do anything now, tomorrow, the assailants will come and take our country for a toss. We have good bureaucrats. Political drama is more than enough for now. Dear Sir, the whole country is with you. For a noble reason, for my country, I am ready to sacrifice my life and my family. Because I love my India.
Jai Hind.
Thank you for the consideration
Yours truly,
Richy D Alexander
Mumbai
richyjournalist@gmail.com
Tuesday 18 November 2008
The spices market is highly competitive
…says Navas Meeran, vice chairman of Eastern Condiments Pvt Ltd (ECPL), which is one of the largest exporters of curry powders in India. When Meeran joined his father in running the family-owned business in 1994, the turnover of the company was in the range of Rs10 crore. It did not take long for Navas Meeran to rework the business model and prepare for long-term growth. And, at the heart of his business model, was the core competency they had built up-an efficient distribution system. Eastern Curry powder did not remain in the league of the small player for long.
By 1998, the company’s turnover had surged to Rs 40 core and it was producing and selling a full range of curry powders. By 1996-97, Eastern brand crossed the boundaries to touch Karnataka. And in 1999, the Meerans took a strategic decision by getting into direct distribution of their products everywhere. Eastern’s turnover stood at Rs 162 crore in 2005-06. By 2006-07, it surged to Rs 208 crore. In the West Asian market, the company pulled off a triumph by emerging as the largest selling curry powders brand in the UAE.
At present, the company is weighing several new opportunities like private labelling and capturing new export markets. In this exclusive e-conversation with Richy D Alexander, Meeran shares his views on the Indian condiments market vis-à-vis the future plans of the company.
On the Indian condiments market…
The condiments market in India, specifically with respect to spice trade, is growing at a fast pace. The sector constitutes two main categories – straight powders (raw spices like coriander, chilly, turmeric, pepper, etc, in whole and in powder form) and blended spice powders (masala). While straight powders account for 70 per cent of the market, the blended spice powders make up for the rest.
The presence of regional and local players is significant in the straight powder’s market, while in the blended spices market the presence of organised sector is more prevalent. The masala market is characterised by regional tastes, which is different from region-to-region, state-to-state, or even within states. This poses a challenge to any national brand. And, with the influx of modern retail outlets, the markets are bound to expand further.
About Eastern Condiments Pvt Ltd…
Eastern Condiments Pvt Ltd (ECPL) commenced as a trading enterprise in Adimali - a remote village in Kerala, en route Munnar. It was established by a visionary entrepreneur M E Meeran and incorporated as a private limited company in 1989. Since then, the company has established itself as a leading player in the processed spices segment.
For 10 consecutive years, the Spices Board of India rated ECPL as the largest exporter of spice powders in consumer packs. This has helped the company in establishing itself as one of the market leaders for straight powders and spice masala in India The company exports its products to the markets in Middle East, Europe and the US. It has sales & distribution arrangements in 10 countries.
The company has several quality certifications and accreditations to its credit, which includes HACCP and ISO 22000. It is, today, on an aggressive growth path and is in the process of transforming itself into a highly mechanised, quality-conscious and IT-enabled organisation. It recently bagged investments from the US-based New Vernon Pvt Equity Ltd.
The company’s performance in the past one year…
ECPL clocked a turnover of Rs 200 crore for the financial year 2007-08. It has been growing steadily for the past few years, and during the last year, the brand made its foray into some of the North Indian states, which improved its distribution network in more than 10 states. We have done well in the southern region, while we have also grown steadily in other regions. We are increasing our product portfolio to include products with regional flavour and have successfully launched a few new products.
The company has increased its production capacity to 300 tonne per day and has emerged as one of the largest integrated spices and condiments processors in the country. The capacity expansion is a part of the series of efforts to consolidate market leadership of the company and expand towards new areas.
EPCL, the flagship company of the group, started production from its new facilities after installation of technologically advanced imported machinery and successfully conducting product trials. The current capacity expansion was undertaken with an investment of Rs 50 crore.
The company also plans to set up a chilly processing plant at Guntur in Andhra Pradesh, coriander plant at Rajasthan and an export unit at Kothamangalam. These plants are in various stages of their planning and implementation.
The Spices Board of India selected the company for two awards for outstanding export performance of spices in consumer packs during 2003-04 to 2006-07 and also for outstanding export performance of spice mixes (including curry powder) during 2003-04, 2005-06 & 2006-07. The award is a testimony of their set global standards in quality and manufacturing process.
A unique business model employed by the Eastern Group, by making every distributor a partner and providing additional incentives to them, has proved to be of immense help in entering new markets. We are making a major foray into the Western Region, especially Maharashtra and Gujarat. The number of vehicles in Mumbai rose to 61 after launching the scheme one year ago.
Demand for Indian spices with respect to exports…
Indian spices are in great demand all over the world. They are mainly exported to the US, Europe, GCC countries, etc. According to the Spices Board of India, the country exports more than 0.40 million tonne of spices annually, and also accounts for around 48 per cent of the global export volume and 44 per cent of the export value. Overall, spices are grown in about 2.9 million hectares of the country. The spices production in India, as much of the agriculture in the country, is undertaken in millions of tiny holdings that determine the livelihood of a large number of the rural population.
According to the International Organization for Standardization (ISO), there are in all about 109 spices and India produces as many as 75 in its various agro-climatic regions. The term ‘spices and condiments’ applies to the natural plant or vegetable products or mixtures in whole or ground form, which are used for imparting flavour, aroma and piquancy to food items. Spices are also being used within the country for imparting flavour to the foods and in medicines, pharmaceuticals, perfumery, cosmetics as well as several other industries.
Eastern Condiments’ overseas operation…
ECPL operates through a set of dedicated distributors in most of the countries and has established its exports market in the Middle East, US, UK, Australia, Germany, etc. Majority of the exports is in the Middle East where the demand for exports is quite high. The company is also setting up a joint venture in the Middle East for processing and packing commodities. The joint venture with UAE-based Jaleel Traders for processing spices is about to commence the functioning. The facility is expected to improve the market share of the ‘Eastern’ Brand in the entire region of West-Asia. ECPL has been awarded the ‘Largest exporter of blended spice in consumer packs’ award by the Spices Board of India for 10 years in a row. Besides spices and condiments, Eastern Group has business interests in rubber re-treading, mattresses (Sunidra brand), readymade garments (King Richard brand) and packaged drinking water.
Quality initiatives taken by the company…
The company has installed a fully automated quality control laboratory to check quality in spices and ready-to-eat food products. The raw materials to finished products pass through stringent quality control measures. The lab has three sections - the chemical, instrumentation and the microbiological. The full bench of equipments from Biomerieux ensures that test results are received within hours compared to normal testing time of 2-3 days.
The competition within the spices market...
The spices market is highly competitive. It is high in case of straight powders segment, which includes different categories of suppliers and product value addition is limited. In the blended spices segment, taste and product quality are the differentiators. Capabilities in sourcing raw material, product development, supply chain management, and distribution network act as a key success factors in this highly competitive environment.
Trends in the condiments market…
It is a very dynamic market and we have been noticing the trend where the conversion from home ground powders to buying loose powders and now to the current inclination of buying branded spice powders is on the rise. The market for blended spices and ready-to-cook spice powders/paste is also growing albeit not at the same pace. A thriving economy with a growing middle-class segment and changing lifestyles offers ample growth opportunities.
Future growth strategies of the company...
We have a variety of strategies, which are the mantras for our growth. These include product portfolio addition; distribution channel expansion; setting up new manufacturing facilities; upgrading existing facilities; improving supply chain capabilities; acquiring and nurturing talent; imbibing state-of-the-art technology, etc. The group, with a turnover of Rs 260 crore, is aiming to achieve a target of Rs 1,000 crore by 2011. As part of our current expansion programme we will be entering the seeds and pulses market in the retail as well as bulk segments.
Outlook for the Eastern Condiments’ business...
Product portfolio addition, distribution channel expansion, setting up new manufacturing facilities, upgrading existing facilities, improving supply chain capabilities, acquiring and nurturing talent, imbibing state-of the art- technology wherever applicable etc. are what we believe are our mantras for growth. As part of our current expansion program we will be entering the seeds and pulses market in the retail as well as bulk segments. ECPL is on an aggressive growth path and in a few years from now we would emerge as a leading player in the Indian as well as the international markets
…says Navas Meeran, vice chairman of Eastern Condiments Pvt Ltd (ECPL), which is one of the largest exporters of curry powders in India. When Meeran joined his father in running the family-owned business in 1994, the turnover of the company was in the range of Rs10 crore. It did not take long for Navas Meeran to rework the business model and prepare for long-term growth. And, at the heart of his business model, was the core competency they had built up-an efficient distribution system. Eastern Curry powder did not remain in the league of the small player for long.
By 1998, the company’s turnover had surged to Rs 40 core and it was producing and selling a full range of curry powders. By 1996-97, Eastern brand crossed the boundaries to touch Karnataka. And in 1999, the Meerans took a strategic decision by getting into direct distribution of their products everywhere. Eastern’s turnover stood at Rs 162 crore in 2005-06. By 2006-07, it surged to Rs 208 crore. In the West Asian market, the company pulled off a triumph by emerging as the largest selling curry powders brand in the UAE.
At present, the company is weighing several new opportunities like private labelling and capturing new export markets. In this exclusive e-conversation with Richy D Alexander, Meeran shares his views on the Indian condiments market vis-à-vis the future plans of the company.
On the Indian condiments market…
The condiments market in India, specifically with respect to spice trade, is growing at a fast pace. The sector constitutes two main categories – straight powders (raw spices like coriander, chilly, turmeric, pepper, etc, in whole and in powder form) and blended spice powders (masala). While straight powders account for 70 per cent of the market, the blended spice powders make up for the rest.
The presence of regional and local players is significant in the straight powder’s market, while in the blended spices market the presence of organised sector is more prevalent. The masala market is characterised by regional tastes, which is different from region-to-region, state-to-state, or even within states. This poses a challenge to any national brand. And, with the influx of modern retail outlets, the markets are bound to expand further.
About Eastern Condiments Pvt Ltd…
Eastern Condiments Pvt Ltd (ECPL) commenced as a trading enterprise in Adimali - a remote village in Kerala, en route Munnar. It was established by a visionary entrepreneur M E Meeran and incorporated as a private limited company in 1989. Since then, the company has established itself as a leading player in the processed spices segment.
For 10 consecutive years, the Spices Board of India rated ECPL as the largest exporter of spice powders in consumer packs. This has helped the company in establishing itself as one of the market leaders for straight powders and spice masala in India The company exports its products to the markets in Middle East, Europe and the US. It has sales & distribution arrangements in 10 countries.
The company has several quality certifications and accreditations to its credit, which includes HACCP and ISO 22000. It is, today, on an aggressive growth path and is in the process of transforming itself into a highly mechanised, quality-conscious and IT-enabled organisation. It recently bagged investments from the US-based New Vernon Pvt Equity Ltd.
The company’s performance in the past one year…
ECPL clocked a turnover of Rs 200 crore for the financial year 2007-08. It has been growing steadily for the past few years, and during the last year, the brand made its foray into some of the North Indian states, which improved its distribution network in more than 10 states. We have done well in the southern region, while we have also grown steadily in other regions. We are increasing our product portfolio to include products with regional flavour and have successfully launched a few new products.
The company has increased its production capacity to 300 tonne per day and has emerged as one of the largest integrated spices and condiments processors in the country. The capacity expansion is a part of the series of efforts to consolidate market leadership of the company and expand towards new areas.
EPCL, the flagship company of the group, started production from its new facilities after installation of technologically advanced imported machinery and successfully conducting product trials. The current capacity expansion was undertaken with an investment of Rs 50 crore.
The company also plans to set up a chilly processing plant at Guntur in Andhra Pradesh, coriander plant at Rajasthan and an export unit at Kothamangalam. These plants are in various stages of their planning and implementation.
The Spices Board of India selected the company for two awards for outstanding export performance of spices in consumer packs during 2003-04 to 2006-07 and also for outstanding export performance of spice mixes (including curry powder) during 2003-04, 2005-06 & 2006-07. The award is a testimony of their set global standards in quality and manufacturing process.
A unique business model employed by the Eastern Group, by making every distributor a partner and providing additional incentives to them, has proved to be of immense help in entering new markets. We are making a major foray into the Western Region, especially Maharashtra and Gujarat. The number of vehicles in Mumbai rose to 61 after launching the scheme one year ago.
Demand for Indian spices with respect to exports…
Indian spices are in great demand all over the world. They are mainly exported to the US, Europe, GCC countries, etc. According to the Spices Board of India, the country exports more than 0.40 million tonne of spices annually, and also accounts for around 48 per cent of the global export volume and 44 per cent of the export value. Overall, spices are grown in about 2.9 million hectares of the country. The spices production in India, as much of the agriculture in the country, is undertaken in millions of tiny holdings that determine the livelihood of a large number of the rural population.
According to the International Organization for Standardization (ISO), there are in all about 109 spices and India produces as many as 75 in its various agro-climatic regions. The term ‘spices and condiments’ applies to the natural plant or vegetable products or mixtures in whole or ground form, which are used for imparting flavour, aroma and piquancy to food items. Spices are also being used within the country for imparting flavour to the foods and in medicines, pharmaceuticals, perfumery, cosmetics as well as several other industries.
Eastern Condiments’ overseas operation…
ECPL operates through a set of dedicated distributors in most of the countries and has established its exports market in the Middle East, US, UK, Australia, Germany, etc. Majority of the exports is in the Middle East where the demand for exports is quite high. The company is also setting up a joint venture in the Middle East for processing and packing commodities. The joint venture with UAE-based Jaleel Traders for processing spices is about to commence the functioning. The facility is expected to improve the market share of the ‘Eastern’ Brand in the entire region of West-Asia. ECPL has been awarded the ‘Largest exporter of blended spice in consumer packs’ award by the Spices Board of India for 10 years in a row. Besides spices and condiments, Eastern Group has business interests in rubber re-treading, mattresses (Sunidra brand), readymade garments (King Richard brand) and packaged drinking water.
Quality initiatives taken by the company…
The company has installed a fully automated quality control laboratory to check quality in spices and ready-to-eat food products. The raw materials to finished products pass through stringent quality control measures. The lab has three sections - the chemical, instrumentation and the microbiological. The full bench of equipments from Biomerieux ensures that test results are received within hours compared to normal testing time of 2-3 days.
The competition within the spices market...
The spices market is highly competitive. It is high in case of straight powders segment, which includes different categories of suppliers and product value addition is limited. In the blended spices segment, taste and product quality are the differentiators. Capabilities in sourcing raw material, product development, supply chain management, and distribution network act as a key success factors in this highly competitive environment.
Trends in the condiments market…
It is a very dynamic market and we have been noticing the trend where the conversion from home ground powders to buying loose powders and now to the current inclination of buying branded spice powders is on the rise. The market for blended spices and ready-to-cook spice powders/paste is also growing albeit not at the same pace. A thriving economy with a growing middle-class segment and changing lifestyles offers ample growth opportunities.
Future growth strategies of the company...
We have a variety of strategies, which are the mantras for our growth. These include product portfolio addition; distribution channel expansion; setting up new manufacturing facilities; upgrading existing facilities; improving supply chain capabilities; acquiring and nurturing talent; imbibing state-of-the-art technology, etc. The group, with a turnover of Rs 260 crore, is aiming to achieve a target of Rs 1,000 crore by 2011. As part of our current expansion programme we will be entering the seeds and pulses market in the retail as well as bulk segments.
Outlook for the Eastern Condiments’ business...
Product portfolio addition, distribution channel expansion, setting up new manufacturing facilities, upgrading existing facilities, improving supply chain capabilities, acquiring and nurturing talent, imbibing state-of the art- technology wherever applicable etc. are what we believe are our mantras for growth. As part of our current expansion program we will be entering the seeds and pulses market in the retail as well as bulk segments. ECPL is on an aggressive growth path and in a few years from now we would emerge as a leading player in the Indian as well as the international markets
Monday 18 August 2008
'Vinita Bali speaking', M D Britannia
“VAT on biscuits should be reduced from 12.5 per cent to 4 per cent”
…says Vinita Bali, managing director of Britannia Industries Ltd - one of the most trusted food brands in India. Britannia has been evolving under the magnificent leadership of Bali, who has a rich and diverse experience in packaged foods & beverages gained from working in a variety of marketing, sales and general management positions
An alumnus of Jamnalal Bajaj Institute of Management Studies in Mumbai, Bali started her career with Voltas Ltd before moving to Cadbury and later to The Coca-Cola Company. After an eventful nine-year association with Coke in marketing, general management and strategy roles, Bali joined her mentor and globally acclaimed marketing guru, Sergio Zyman at the Zyman Group in July 2003 as managing principal and head of the Business Strategy practice in the company's Atlanta office. As a member of the company's board of managers, Bali shared responsibility for developing and managing Zyman Group's consulting business which doubled in that year.
It was in 2005 that Bali took over the reins at Britannia as its chief executive officer, and since then has been in the midst of leading a business model and culture transformation in Britannia. Besides transforming the company with her unique strategies, she also blends a high quality of Indian and international perspective having lived and worked in the UK, Nigeria, South Africa, USA and Chile.
On the jubilant occasion of Modern Food Processing’s 3rd Anniversary, Bali shares her views on Indian biscuits industry and Britannia’s future plans in this e-conversation with Richy D Alexander.
A brief history of Britannia…
The company we all know as Britannia today, was started in 1892 as a non-descript house in Kolkata manufacturing biscuits with an initial investment of Rs 295. By 1910, with the advent of electricity, Britannia mechanised its operations, and in 1921, it became the first company east of the Suez Canal to use imported gas ovens. It was in 1975, the Britannia Biscuit Company took over the distribution of biscuits from Parry's who till now distributed Britannia biscuits in India. In the subsequent public issue of 1978, Indian shareholding crossed 60 per cent, firmly establishing the Indianness of the firm.
In 1997, the company unveiled its new corporate identity – ‘Eat Healthy, Think Better’ - and made its first foray into the dairy products market. Britannia strode into the 21st century as one of India's biggest brands and the pre-eminent food brand of the country. In 2002, Britannia's New Business Division formed a joint venture with Fonterra, the world's second largest dairy company, and Britannia New Zealand Foods Pvt Ltd was born. The company is also recognised for its innovative approach to products and marketing.
The current status of the Indian snack & biscuits industry…
Biscuits contribute Rs 80,000 million to the FMCG industry and provide a vast opportunity for growth, as the per capita consumption of biscuits is less than 2.1 kg in our country, compared to more than 10 kg in the US, UK and other European countries and above 4.25 kg in South East Asian countries. Higher disposable incomes and the willingness of consumers to try new brands have attracted a number of players to the biscuit industry, both at the national & local level and generated intense activity in the marketplace. The branded market grew around 15 per cent to 16 per cent last year. Commodity inflation continues to have a significant impact on input cost and this inflationary pressure has put the industry profits under pressure.
Emerging trends in the Indian biscuits industry…
Today, there is a greater consumer choice both at the local and national level, together with a diversity of tastes & benefits ranging from health & nutrition to pure indulgence.
On the increasing inflation affecting the snacks & biscuit industry…
We are operating in an extremely high and unprecedented cost scenario and some irrational competition too. The result is a huge pricing pressure with limitations on price hikes for the entire industry and a shrinking profit pool of the industry. Wheat and oil prices are already showing an increase of more than 20 per cent. In addition, steep increase in crude oil prices and hike in petrol & diesel prices announced by the government has resulted in a significant increase in price of packaging materials, freight and production cost.
As far as Britannia is concerned, part of the challenge is to enhance and improve our productivity to absorb inflation in input cost to the extent possible and make our brands available for consumers at affordable prices. We have focussed on improving productivity, eliminate cost disadvantages and cut non-value adding activities to secure profitable growth. Through the various cost reduction initiatives – the company has taken over the last three years – Rs 1,200 million of cost has been eliminated.
Britannia’s business strategy and its performance during 2007-08…
Our strategy is simple – to get more people to buy & enjoy more of our brands – anytime, anywhere – everyday.
Britannia’s performance in 2007-08 was strong with sales growing 17.5 per cent, on top of 27.5 per cent growth in the previous year, adding Rs 8000 million of incremental revenue during this period (Total revenue for 2007-08 was Rs 26,170 million). Britannia is amongst the fastest growing FMCG companies in the last two years. Net profit increased by 77.5 per cent and operating margin by 307 basis points to 7.5 per cent in 2007-08 despite inflation in key commodities by 20 per cent-25 per cent in the last two years. Britannia continues to be the most trusted food brand of India, in a survey conducted by AC Nielsen ORG-Marg, consumers voted brand ‘Britannia’ among the Top 10 most trusted brand across categories for the fifth successive year. It was also rated as second most trusted food brand in 2008 and first in 2007. Across all categories, it was rated as seventh most trusted brand in 2008.
Consistent with its credo of Swasth Khao, Tan Man Jagao, Britannia created a partnership with Global Alliance for Improved Nutrition (GAIN) and the Naandi Foundation to supply iron fortified Tiger biscuits to supplement the mid-day meal program in schools. This has been recognised as a unique programme globally by GAIN. The World Bank Institute has written a case study and Britannia was invited to make a commitment to the Clinton Global Initiative, a non-partisan catalyst for action that brings together a community of global leaders to devise and implement solutions for some of the world’s pressing challenges like nutrition.
On the individual share of organised & unorganised bakery sector…
The biscuit category is one of the largest FMCG categories with a turnover of approximately Rs 80,000 million. The organised branded market is over 85 per cent with the top three brands holding close to 70 per cent share. In the breads category, the organised players account for 75 to 80 per cent share.
Challenges faced by the bakery industry…
The bakery industry consumes agricultural produce adding to the income of farmers. This is a direct contribution of the industry towards improvement of the agricultural sector and strengthening the rural economy. The industry also provides direct & indirect employment, locally as well as nationally. Despite this, the industry is faced with serious challenges. Rapid increase in cost of major inputs such as wheat flour, sugar, oil, packaging material, fuel, power, transportation etc. has made a serious dent in the viability of the industry. Added to this is the heavy burden of taxation, which is making it difficult for the organised biscuit industry to operate at an optimum level. Biscuits attract VAT at 12.5 per cent - like chocolates, confectionery and ice cream which cater to a much smaller and relatively more affluent consumer base. Other categories with lesser nutritional value like potato chips, jam, jellies, sweets, savories, namkeens, etc attract lesser or no VAT. Biscuits deserve parity with tea, coffee and other basic food products that are liable to VAT at 4 per cent instead of being subject to VAT at 12.5 per cent applicable to delicacies. This is restricting the growth of the industry, utilisation of agricultural produce and therefore larger revenues for the government. To create a level playing field for an industry that is serving a large base of the population both economically and from a nutrition and health angle, there is a need to reduce VAT on biscuits from 12.5 per cent to 4 per cent.
On Britannia’s food processing and packaging portfolio…
Products are sourced from several manufacturing locations spread across the country and reach to millions of consumers through an efficient and widespread distribution chain. We have been augmenting our manufacturing facilities to meet the growing demand. The Britannia system has invested over Rs 2,000 million in last two years in capacity expansion. We plan to make substantial investments in this area for the next couple of years too.
Response as far as the launch of new products are concerned…
We have received an overwhelming response and extended these products nationally. The segment of bread, cakes and rusks is growing rapidly and the business has doubled in two years. Brand building & Innovation is a key driver of strong growth and you will continue to see more products in these categories.
Britannia’s overseas operations…
Consistent with our growth strategy to expand international presence and to grow through relevant geographic expansion, in March 07, we acquired a 70 per cent beneficial stake in two Middle-East companies, which are significant regional players in biscuit and cookies in the GCC markets. In addition, these companies export their products to over 30 countries around the world. Middle East is one of the fastest growing markets with significant synergies in terms of consumer profile, tastes, habits, attitudes, etc and provides a huge opportunity for growth. In 2008, we extended our international operations to Sri Lanka and are in the process of introducing a range of select brands.
Future plans and new innovations…
Innovations fall into several categories and include business model innovation, application of new technology and new products & packs. In 2007-08, The company filed two technology patents for designs developed indigenously. Britannia also led the market in product & pack innovation, commercialising both in-home & out-of-home consumption opportunities, some of the new products and packs introduced included Treat Fruit Rollz, NutriChoice Digestive, NutriChoice SugarOut, Good Day Jumbo, Tiger – Banana (fortified with iron), Good Day – Classic Cookies, Greetings – gift packs and a variety of cheese variants.
Additionally, several power brands were renovated to enhance their taste & health appeal. Britannia is the only biscuit company to have removed trans-fat from all its recipes.
The company also augmented its recipe and design capability to fortify products with micronutrients, consistent with ‘Swasth Khao, Tan Man Jagao’ and this included adding micronutrients to Tiger, Tiger Banana, Milk Bikis as well as bread. Approximately 50 per cent of the company’s bakery portfolio is now sold fortified with micronutrients. You will see more of our plans unfold in this year.
…says Vinita Bali, managing director of Britannia Industries Ltd - one of the most trusted food brands in India. Britannia has been evolving under the magnificent leadership of Bali, who has a rich and diverse experience in packaged foods & beverages gained from working in a variety of marketing, sales and general management positions
An alumnus of Jamnalal Bajaj Institute of Management Studies in Mumbai, Bali started her career with Voltas Ltd before moving to Cadbury and later to The Coca-Cola Company. After an eventful nine-year association with Coke in marketing, general management and strategy roles, Bali joined her mentor and globally acclaimed marketing guru, Sergio Zyman at the Zyman Group in July 2003 as managing principal and head of the Business Strategy practice in the company's Atlanta office. As a member of the company's board of managers, Bali shared responsibility for developing and managing Zyman Group's consulting business which doubled in that year.
It was in 2005 that Bali took over the reins at Britannia as its chief executive officer, and since then has been in the midst of leading a business model and culture transformation in Britannia. Besides transforming the company with her unique strategies, she also blends a high quality of Indian and international perspective having lived and worked in the UK, Nigeria, South Africa, USA and Chile.
On the jubilant occasion of Modern Food Processing’s 3rd Anniversary, Bali shares her views on Indian biscuits industry and Britannia’s future plans in this e-conversation with Richy D Alexander.
A brief history of Britannia…
The company we all know as Britannia today, was started in 1892 as a non-descript house in Kolkata manufacturing biscuits with an initial investment of Rs 295. By 1910, with the advent of electricity, Britannia mechanised its operations, and in 1921, it became the first company east of the Suez Canal to use imported gas ovens. It was in 1975, the Britannia Biscuit Company took over the distribution of biscuits from Parry's who till now distributed Britannia biscuits in India. In the subsequent public issue of 1978, Indian shareholding crossed 60 per cent, firmly establishing the Indianness of the firm.
In 1997, the company unveiled its new corporate identity – ‘Eat Healthy, Think Better’ - and made its first foray into the dairy products market. Britannia strode into the 21st century as one of India's biggest brands and the pre-eminent food brand of the country. In 2002, Britannia's New Business Division formed a joint venture with Fonterra, the world's second largest dairy company, and Britannia New Zealand Foods Pvt Ltd was born. The company is also recognised for its innovative approach to products and marketing.
The current status of the Indian snack & biscuits industry…
Biscuits contribute Rs 80,000 million to the FMCG industry and provide a vast opportunity for growth, as the per capita consumption of biscuits is less than 2.1 kg in our country, compared to more than 10 kg in the US, UK and other European countries and above 4.25 kg in South East Asian countries. Higher disposable incomes and the willingness of consumers to try new brands have attracted a number of players to the biscuit industry, both at the national & local level and generated intense activity in the marketplace. The branded market grew around 15 per cent to 16 per cent last year. Commodity inflation continues to have a significant impact on input cost and this inflationary pressure has put the industry profits under pressure.
Emerging trends in the Indian biscuits industry…
Today, there is a greater consumer choice both at the local and national level, together with a diversity of tastes & benefits ranging from health & nutrition to pure indulgence.
On the increasing inflation affecting the snacks & biscuit industry…
We are operating in an extremely high and unprecedented cost scenario and some irrational competition too. The result is a huge pricing pressure with limitations on price hikes for the entire industry and a shrinking profit pool of the industry. Wheat and oil prices are already showing an increase of more than 20 per cent. In addition, steep increase in crude oil prices and hike in petrol & diesel prices announced by the government has resulted in a significant increase in price of packaging materials, freight and production cost.
As far as Britannia is concerned, part of the challenge is to enhance and improve our productivity to absorb inflation in input cost to the extent possible and make our brands available for consumers at affordable prices. We have focussed on improving productivity, eliminate cost disadvantages and cut non-value adding activities to secure profitable growth. Through the various cost reduction initiatives – the company has taken over the last three years – Rs 1,200 million of cost has been eliminated.
Britannia’s business strategy and its performance during 2007-08…
Our strategy is simple – to get more people to buy & enjoy more of our brands – anytime, anywhere – everyday.
Britannia’s performance in 2007-08 was strong with sales growing 17.5 per cent, on top of 27.5 per cent growth in the previous year, adding Rs 8000 million of incremental revenue during this period (Total revenue for 2007-08 was Rs 26,170 million). Britannia is amongst the fastest growing FMCG companies in the last two years. Net profit increased by 77.5 per cent and operating margin by 307 basis points to 7.5 per cent in 2007-08 despite inflation in key commodities by 20 per cent-25 per cent in the last two years. Britannia continues to be the most trusted food brand of India, in a survey conducted by AC Nielsen ORG-Marg, consumers voted brand ‘Britannia’ among the Top 10 most trusted brand across categories for the fifth successive year. It was also rated as second most trusted food brand in 2008 and first in 2007. Across all categories, it was rated as seventh most trusted brand in 2008.
Consistent with its credo of Swasth Khao, Tan Man Jagao, Britannia created a partnership with Global Alliance for Improved Nutrition (GAIN) and the Naandi Foundation to supply iron fortified Tiger biscuits to supplement the mid-day meal program in schools. This has been recognised as a unique programme globally by GAIN. The World Bank Institute has written a case study and Britannia was invited to make a commitment to the Clinton Global Initiative, a non-partisan catalyst for action that brings together a community of global leaders to devise and implement solutions for some of the world’s pressing challenges like nutrition.
On the individual share of organised & unorganised bakery sector…
The biscuit category is one of the largest FMCG categories with a turnover of approximately Rs 80,000 million. The organised branded market is over 85 per cent with the top three brands holding close to 70 per cent share. In the breads category, the organised players account for 75 to 80 per cent share.
Challenges faced by the bakery industry…
The bakery industry consumes agricultural produce adding to the income of farmers. This is a direct contribution of the industry towards improvement of the agricultural sector and strengthening the rural economy. The industry also provides direct & indirect employment, locally as well as nationally. Despite this, the industry is faced with serious challenges. Rapid increase in cost of major inputs such as wheat flour, sugar, oil, packaging material, fuel, power, transportation etc. has made a serious dent in the viability of the industry. Added to this is the heavy burden of taxation, which is making it difficult for the organised biscuit industry to operate at an optimum level. Biscuits attract VAT at 12.5 per cent - like chocolates, confectionery and ice cream which cater to a much smaller and relatively more affluent consumer base. Other categories with lesser nutritional value like potato chips, jam, jellies, sweets, savories, namkeens, etc attract lesser or no VAT. Biscuits deserve parity with tea, coffee and other basic food products that are liable to VAT at 4 per cent instead of being subject to VAT at 12.5 per cent applicable to delicacies. This is restricting the growth of the industry, utilisation of agricultural produce and therefore larger revenues for the government. To create a level playing field for an industry that is serving a large base of the population both economically and from a nutrition and health angle, there is a need to reduce VAT on biscuits from 12.5 per cent to 4 per cent.
On Britannia’s food processing and packaging portfolio…
Products are sourced from several manufacturing locations spread across the country and reach to millions of consumers through an efficient and widespread distribution chain. We have been augmenting our manufacturing facilities to meet the growing demand. The Britannia system has invested over Rs 2,000 million in last two years in capacity expansion. We plan to make substantial investments in this area for the next couple of years too.
Response as far as the launch of new products are concerned…
We have received an overwhelming response and extended these products nationally. The segment of bread, cakes and rusks is growing rapidly and the business has doubled in two years. Brand building & Innovation is a key driver of strong growth and you will continue to see more products in these categories.
Britannia’s overseas operations…
Consistent with our growth strategy to expand international presence and to grow through relevant geographic expansion, in March 07, we acquired a 70 per cent beneficial stake in two Middle-East companies, which are significant regional players in biscuit and cookies in the GCC markets. In addition, these companies export their products to over 30 countries around the world. Middle East is one of the fastest growing markets with significant synergies in terms of consumer profile, tastes, habits, attitudes, etc and provides a huge opportunity for growth. In 2008, we extended our international operations to Sri Lanka and are in the process of introducing a range of select brands.
Future plans and new innovations…
Innovations fall into several categories and include business model innovation, application of new technology and new products & packs. In 2007-08, The company filed two technology patents for designs developed indigenously. Britannia also led the market in product & pack innovation, commercialising both in-home & out-of-home consumption opportunities, some of the new products and packs introduced included Treat Fruit Rollz, NutriChoice Digestive, NutriChoice SugarOut, Good Day Jumbo, Tiger – Banana (fortified with iron), Good Day – Classic Cookies, Greetings – gift packs and a variety of cheese variants.
Additionally, several power brands were renovated to enhance their taste & health appeal. Britannia is the only biscuit company to have removed trans-fat from all its recipes.
The company also augmented its recipe and design capability to fortify products with micronutrients, consistent with ‘Swasth Khao, Tan Man Jagao’ and this included adding micronutrients to Tiger, Tiger Banana, Milk Bikis as well as bread. Approximately 50 per cent of the company’s bakery portfolio is now sold fortified with micronutrients. You will see more of our plans unfold in this year.
Saturday 19 July 2008
My rock icons
Like my previous post this is not a certificate to anybody. But I am writing about some of my friends who helped me to change and they made their marks in my heart. I am not writing about the whole batch of IIJNM 2008, any way I am coming to the point.
Idol no: 1. Sameer Ranjan Bakshi
I know who this guy is; we dreamt together, not about chicks, about our career, making money through modern journalism in simple words how we can rule this world. Our kinship is an audacious to all. Pure business oriented brain, his brain cost million dollars. So he is a million dollar baby. I call him SAAM or SAAMY. Very feisty, shrewd chap. He loves ‘goa’. He inspired me a lot. Nobody has touched my heart like that. Actually no need to write a comment about him, coz I don’t have words to write about him. Mr. Sameer Ranjan Bakshi, I am saluting you dude.
Idol no: 2. Debasis Mohapatra.
Debu… what should I say. Everybody can incur many things from Debu. He saying that he is old, His head cost billion dollars. You ask anything under the sun, our Debu will say. I am sure nobody in our group to beat him. Saam and I can beat him ‘literally’, not by words. He is mind-blowing (Mahiya). My best boozing partner. Debu is equal to Debu itself. He is like a mentor to me. A charming personality.
Three of us have a plan to start news business ventures, and make marks in the world. I hope that it will come true. Let see….
Idol no: 3. Rohan Ramesh
Hmmm... ‘Rock you like a hurricane’, that’s all I can say about my buddy. Right now he is working as a reporter at The New Indian Express. The big brain of IIJNM 2008. Very passionate about International Defence. We used to booze smoke (Stuff) & dance. He is a dude. We four were in one room in the hostel. He speaks only sense.
Idol no: 4. Ayesha Aleem
When she joined at IIJNM Nikhil & I thought she was a mallu Christian girl, but she was not. She helped me a lot, she is planning to go Boston University. I know her parents and they know me also. Ayesha I am saluting you my dear friend. She has a very good personality; she is very charming and very caring. She is doing really well. English alphabets are not enough to write about Ayesha, I really mean it.
All these 4 stars encouraged me very much and they stood for me when I really needed a support. They motivated me like anything. I am very lucky, coz I have very awesome friends; and I am sure that they are with me. And also I would be very near to them when they need my shoulder.
That’s all for now…..
I am coming with the latest……
Idol no: 1. Sameer Ranjan Bakshi
I know who this guy is; we dreamt together, not about chicks, about our career, making money through modern journalism in simple words how we can rule this world. Our kinship is an audacious to all. Pure business oriented brain, his brain cost million dollars. So he is a million dollar baby. I call him SAAM or SAAMY. Very feisty, shrewd chap. He loves ‘goa’. He inspired me a lot. Nobody has touched my heart like that. Actually no need to write a comment about him, coz I don’t have words to write about him. Mr. Sameer Ranjan Bakshi, I am saluting you dude.
Idol no: 2. Debasis Mohapatra.
Debu… what should I say. Everybody can incur many things from Debu. He saying that he is old, His head cost billion dollars. You ask anything under the sun, our Debu will say. I am sure nobody in our group to beat him. Saam and I can beat him ‘literally’, not by words. He is mind-blowing (Mahiya). My best boozing partner. Debu is equal to Debu itself. He is like a mentor to me. A charming personality.
Three of us have a plan to start news business ventures, and make marks in the world. I hope that it will come true. Let see….
Idol no: 3. Rohan Ramesh
Hmmm... ‘Rock you like a hurricane’, that’s all I can say about my buddy. Right now he is working as a reporter at The New Indian Express. The big brain of IIJNM 2008. Very passionate about International Defence. We used to booze smoke (Stuff) & dance. He is a dude. We four were in one room in the hostel. He speaks only sense.
Idol no: 4. Ayesha Aleem
When she joined at IIJNM Nikhil & I thought she was a mallu Christian girl, but she was not. She helped me a lot, she is planning to go Boston University. I know her parents and they know me also. Ayesha I am saluting you my dear friend. She has a very good personality; she is very charming and very caring. She is doing really well. English alphabets are not enough to write about Ayesha, I really mean it.
All these 4 stars encouraged me very much and they stood for me when I really needed a support. They motivated me like anything. I am very lucky, coz I have very awesome friends; and I am sure that they are with me. And also I would be very near to them when they need my shoulder.
That’s all for now…..
I am coming with the latest……
Friday 13 June 2008
For my sweet friend IS
You know one thing, every person in the earth has some people to motivate and encourage. But it will take some time to realize who our motivator is? But fortunately I realized my motivators (other than my family). Journalism study at IIJNM has helped me a great extent to realize what real life is. It is not that what we see in movies, it is our life, where either we can win and shine (if we try) or we fail. When I joined journalism my life has changed drastically; interaction with different culture, change in the lifestyle etc... I got very few friends, friends in sense reliable friends. This posting is only about my good friend, IS. She is from Delhi (yah Delhi chick), she is good friend. She endured me a lot. I irritated her (big time). We had smoke together. She smokes only Classic Menthol. My brand is Classic Milds; but there was no conflict between us. Menthol is not good for men coz it leads to impotency. But I am metallica and also I am a scorpion so nothing can challenge my strength (yah I mean it). She helped me a lot. Finally we fought, that was in the final days of our college life. But we covered that hurdle also. I would like to say some points about IS. Here she is:
She is beautiful
She is very loving
She is very caring
She is very enthusiastic
She is a good motivator.
She is an all-rounder
She is very very SEXY (I can’t say lie, that’s why .
This is to certify that Ms. IS is my good friend.
She is beautiful
She is very loving
She is very caring
She is very enthusiastic
She is a good motivator.
She is an all-rounder
She is very very SEXY (I can’t say lie, that’s why .
This is to certify that Ms. IS is my good friend.
Outsourcing benefits to small business.
Outsourcing is an extensive term. It is a part and parcel of today’s business, if it is a small scale or a MNC. Outsourcing has been in India for more than two decades. In other words we can say that outsourcing is a subcontract work. For each and every business we can see the vital role of outsourcing. Small businesses are getting benefits from outsourcing. In most of the small companies we can see everything is outsourcing, like HR, finance (payroll) manufacturing, the list is going on. It helps to curtail the expense and improve the benefits. Today not only MNCs but also small companies are depending on outsourcing works. Outsourcing has both positive and negative impacts. It creates lot of job opportunities.
Outsourcing helps small firms in many ways. It attracts foreign clients. By distributing the work the company can perform well. Most of the companies are not self-sufficient; and they can not spend heavily without any profits. Outsourcing is a last resort to these small companies. When small companies distribute their workload they can fully concentrate on other imperative works. Outsourcing reduce the headache, most of the small manufacturing companies can not start expensive manufacturing units, so outsourcing is a benefit to small companies. The major use of outsourcing is reducing the cost. It would also increase the efficiency of a small company. Many small business firms are benefiting from outsourcing, when we speak about Indian context major benefit of outsourcing is ‘free of union strikes’. Outsourcing helps small firms to build innumerable relationships.
Outsourcing helps small firms in many ways. It attracts foreign clients. By distributing the work the company can perform well. Most of the companies are not self-sufficient; and they can not spend heavily without any profits. Outsourcing is a last resort to these small companies. When small companies distribute their workload they can fully concentrate on other imperative works. Outsourcing reduce the headache, most of the small manufacturing companies can not start expensive manufacturing units, so outsourcing is a benefit to small companies. The major use of outsourcing is reducing the cost. It would also increase the efficiency of a small company. Many small business firms are benefiting from outsourcing, when we speak about Indian context major benefit of outsourcing is ‘free of union strikes’. Outsourcing helps small firms to build innumerable relationships.
Wednesday 28 May 2008
Finally became a journalist !!!
At last that happened… what, what you think? Arre I became a journalist. I got into Infomedia India Limited. Those final days in the college (IIJNM) are everlasting. We all young journalists got one week relaxation time to recollect what we have done the entire academic year. It was so good. I didn’t expect that. That week our time table was like this; morning around 10’o clock, breakfast and fag, browsing, phoning, lunch, sleeping, snacks, tea, fag, get booze in the night and then declaration, hot discussion about India’s economic policy, automobiles and chicks sorry one more section, night drive to our favorite hang out Oasis. Any way I’m missing all those fun. I’m missing my sweet friends. All of them got nice placements. The one week complete boozing and outing. I would like to call that week as Oasis week. Shilpa my sweet friend gifted me a
‘nice magazine’… yaaaa FRONT. It was not a business magazine, and then… it was a junior play boy magazine. In that one week my magazine has circulated among all the guys’ room. People were already started crying, at that time I didn’t think about the knot between hearts. On convocation it was a day we can say in one my friend’s style ‘theeeeeee day’. We slept nicely in the convocation hall. That responsibility goes to Outlook editor Vinod Mehta. I made a scene there when I left the hostel. I cried like anything. After that my friends tolerated me by crying stronger than me. After a long break May 15 I joined my office infomedia, Mumbai. Its such a nice place to work, now I’m a journalist. I will tell u later about my office. Its rocking (in all sense).
‘nice magazine’… yaaaa FRONT. It was not a business magazine, and then… it was a junior play boy magazine. In that one week my magazine has circulated among all the guys’ room. People were already started crying, at that time I didn’t think about the knot between hearts. On convocation it was a day we can say in one my friend’s style ‘theeeeeee day’. We slept nicely in the convocation hall. That responsibility goes to Outlook editor Vinod Mehta. I made a scene there when I left the hostel. I cried like anything. After that my friends tolerated me by crying stronger than me. After a long break May 15 I joined my office infomedia, Mumbai. Its such a nice place to work, now I’m a journalist. I will tell u later about my office. Its rocking (in all sense).
Tuesday 15 January 2008
Perspectives of globalization
“Globalization” is a wooly term. It is also taken to mean Americanization, however questions of semantics though intellectually challenging have often, to be set aside, when one is confronted with serious practical issues. In the present work, the term is used in a shell empirical sense. Globalization means privatization of world economy.
Globalization generally refers to a package of socio-economic reforms that include liberalization, privatization and global interaction with special focus on market economy and economic efficiency in all sectors. Therefore, globalization is a process that involves the entire world, leaving marks on every human activity. How ever, it describes growing global interconnectedness and represents a significant shift in the spatial form of socio-cultural relations. Further more, it involves the organization and exercise of power at global scale. In this way, the interaction between local and global process becomes increasingly important. In other words, globalization is a multidimensional process, which characterizes homogenization of economy and culture, increased connectedness and interdependence. It applies to the whole range of socio-economic relations and all aspects of social life from the food we eat to the clothes we wear and the substantionability of environment. It is true that not all small units are disappearing under globalization some do survive. Due to globalization, small units must be globally competitive through technology up gradation. In other words, what is relevant is not just globalization but glocalization that is globalization at the local level.
I. Indian perspectives of Globalization.
If one is going to talk about globalization, the term globalization must be defined. That is the easy party. Globalization is defined as free cross border flow of goods, services, capital, labor, information, ideas, and intellectual property. Everything in fact. Globalization has a descriptive component, as well as a prescriptive one, the latter is more important than the former. The former is simply a factual statement. Today globalization is a faster one. There are however two differences between earlier phase of globalization and the present one. First, the speed of change is faster. Second, because most flows (including capital) are private ones, governments have become less powerful in controlling or determining the shape of globalization. Indian reaction to globalization cannot be considered independent of Indian reactions to liberalization. Globalization is so far as it only concerns the external sector, a subset of liberalization. According to the state reforms, it is more pertinent to say that non-liberalization is a subset of non-globalization.
The Canadian publisher Campbell Hughes had the following definition of a Canadian (related with globalization). “ A Canadian is someone who drinks Brazilian coffee from an English tea cup and munches on French pastry while sitting on his Danish furniture having just come home from an Italian movie in his German car. He picks up his Japanese pen and writes to this Member of Parliament to complain about American take over of the Canadian publishing business”. This is a very apt description of the urban Indian middle class.
The liberalization agenda is well known. Once liberalization is implemented, the globalization agenda will follow. That does not need debating. The question to ask is, why is it difficult to push through this agenda? The implicit assumption is that politicians and political parties do not know what is good for enough. They are irrationals. They do not realize that good economics is good is good politics. This is probably a facile assumption. Politicians and political parties are just as rational and anyone else. The reforms have increased disparities states, this is increasingly reflected in higher rates of growth in Gujarat, Maharashtra, New Delhi, Calcutta, and some of the South Indian states. The faster growing states also tend to have lower rate of population growth, leading to higher rates of per capita growth. But there is no evidence yet, of relatively backward states learning from the experiences of faster growing states and replicate that experience.
If one divides voters into urban and rural segments, the evidence is more like the following. Rural voting patterns rarely reflect economic issues and are influenced much more by the local considerations. Urban voting patterns do reflect economic issues, including liberalization. But if the earlier arguments are accepted, the conclusion is that there was support for globalization; because the middle class benefited as consumers. How ever increasingly, one has lost the support for liberalization, since the middle class tends to lose all producers. The three positive developments need to be mentioned.
Firstly, there is some limited evidence that the worst of the downturn is over. Three major segments of Indian society (large-scale industry, small industry, agriculture) have suffered for various reasons and have inevitably ascribed all their travails to globalization and W.T.O. Large scale industry wants high profitability and wants to postpone the
inevitable shakeout. Small-scale industry wants protection, especially since there is import competition. In general, agriculture has been squeezed by high input prices and large farmers and millers want government-guaranteed high procurement prices. With the worst of the downturn over, it should become easier to push through reforms.
Secondly, agriculture reforms have been on the explicit agenda since 1998. Before that, they were not even on agenda. It is now accepted that agricultural reforms must encompass both procurement and distribution. It is also accepted that agriculture is not just about rice and wheat. Most agricultural reforms however have to be implemented by the states. That will be a long haul. But the prospects for agricultural reform are brighter than what they were three years ago.
Thirdly, despite the generalization that the middle class is against reforms, there are isolated instance of the middle class, a civil society, acting as a countervailing force and demanding better delivery on the part of the government, across a whole range of public services. With the help of globalization there are instance of NGO involvement in education (helped to push the literacy rate up from 52% in 1996 to 65% in 2001) demanding Right to Information acts, or in rating public services. This too has a pro-urban focus, but is also spilling over into rural areas.
Therefore, there is no particular reason to despair. India will be much more confident about globalization once the pre condition of liberalization takes place.
Is India benefiting from the policy of globalization?
India has been following a mixed economy approach towards economic development in which the activities of production and distribution were carried out by the government as well as the individuals. The purpose behind following such a policy was to eliminate poverty, reduce inequality in the distribution of income and wealth, and achieve stable economic growth with social justice. This approach helped India in creating a large industrial base and increase in industrial production. Many public sector enterprises went into looses due to corruption, lack of efficiency in work and ineffective management. Several other problems like shortage or adequate capital and technological backwardness led the government to revise the policy. In 1991, it was observed that the government’s expenditure far exceeded its revenue. This situation led the Indian government to borrow capital from international financial institutions such as the World Bank and IMF. Hence, a new economic policy was formed and the government decided to follow the policy of liberalization and globalization.
A number of complicated formalities like licensing, permission to import raw materials, regulation on price and distribution have been simplified to promote private enterprise. With globalization, Indian economy has integrated with world economy. In other words, we have become economically interdependent at the global or international level. Now many producers from outside our country are selling their goods and services in other countries. Globalization includes movement of not only capital, but laborers from one country to the other country as well. In this manner, Indian economy is now relating with the world economy. So that there is an exchange of capital, technology
and experience between various countries. Our government now encourages investors from abroad to invest in India.
Globalization has brought about noticeable changes in our country. We have better communication facilities and wide variety of electronic goods is now available at affordable prices. Many food-processing companies have entered our country and given us a lot choice to choose. India’s share of goods and services has increased marginally. Though some new jobs are being created in the economy, the policy has some how failed to generate additional job opportunities demanded skilled labor and technical knowledge, which was not available in rural sector.
However, there is a school of thought that rapid development due to globalization is depleting our resources and disturbing the ecological balance. It has been felt at times that the developed countries exploit the cheap labor and natural resources of the developing countries to suit their requirements. Environmentalists feel that rapid industrialization all over the world is creating a green house effect and causing global warming. Development should take place without damaging the environment and natural resources should be used judiciously so that our future generation does not suffer. The global concern today is therefore to adopt a strategy of economic growth that is eco-friendly. Eco- friendly development is called sustainable development, which is the need of the hour, and people all over the world are conscious of this issue.
Yet, another problem, which emanates due to globalization, is the encouragement of brain drain from developing countries to the developed ones. Globalization definitely encourages their process as MNC’s utilize intelligence and skilled managers of developing countries in developed countries.
II. Globalization and poverty
Globalization involves production, trade and finance. International trade has the potential to act as a powerful catalyst for poverty reduction. It can provide poor countries and people with access to markets; technologies and ideas need to sustain higher and more equitable patterns of growth.
Often in the end of discussions about poverty and globalization, critiques say that statistics give a superficial view. Economics is not everything. We should also ask poor people about what they think about globalization. We need a broad statistically sound selection of representative individuals. Recently that was done. According to the survey, 38000 people in 44 nations with coverage of the developing world in all regions, but that views of globalization are much more positive in poor countries than in rich ones.
This global attitude survey showed that only 28 percent of people in the U.S and Western Europe thought growing global trade and business ties was very good. It seems like Americans and Europeans more than others take freedom, wealth and technology for granted, without examing or understanding, the process of markets and internalization on which this depends. But people who are deprived of freedoms and opportunities see globalization as the way to get it.
Even though we have seen history’s biggest reduction in poverty, poverty is still with us, and in many places, it deepens. According to the World Bank 1-2, billions live in absolute poverty and 900 million people live in chronic hunger. History, statistics, theory and the poor themselves all say that the problem is not globalization, it is that they do not yet have access to the fruits of globalization.
III. Impact of Globalization in Culture
The impact of globalization is being felt around the world. Every country of the world wants to be part of the process of globalization. So that it can receive appropriate share of benefits out of it. It is precisely because global economy is penetrating into rural level and bringing rural economy at international level. In fact, globalization is playing important role in exchanging in economy and cultural values from one level to another. These cultural changes are practices have brought for the culture of development and culture of production.
Therefore, globalization is cutting across all geographical and political boundaries. The world is shrinking, not literary in size but in the ability and skill of people and of course, their idea to interact with people and places. However, the benefits from globalization are reaching more or less to every corner of the world and affecting every aspect of human life. Today people are plugged into global economy and culture. In this way it is producing a world that is economically, socially, culturally and politically more uniform, integrated and interdependent.
Globalization and Cultural changes
The impact of globalization on culture has been observed in many fields, that is economic, political and social. These are remarkably visible in the field of employment, education, health, people’s life style, food habits, beliefs, attitudes, knowledge, skills, ideas, thoughts, choice and objectives. Today people seem to be moving away from traditional values and are adopting new cultural values, religion, language, way of living, habits and so on; culturally, they are residing in different places, displaying fewer distinctions and more similarities in their cultural practices.
Impact of globalization on changing cultural order in relation to time and space is not easy to assess, as there is a global cultural diversification and complexities. However, dynamics of changing cultural order in terms of space and time can be examined as
A. Change in building and construction.
First change of globalization can be witnessed in the field of construction. Buildings and house built in one country or cities are being built on the similar pattern in other countries or regions. For example, underground rails, which are being built in London, New York and other cities, are also constructed in Delhi, Kolkatta and other cities of the world. Another example is construction of hotel complexes; flyovers and bridges are also constructed in many cities of the world in same architecture, which are being already built in many mega cities like London, Paris, New York, Mexico and Melbourne. Due to globalization faster means of transportations have been introduced, however building materials can be easily transported from one city or one country to another. These constructions are homogenous in architecture, shape and other aspects. How ever, it cannot be denied that globalization has brought revolution and uniformity in construction and building process. This can be termed as a uniform culture of building and constructions.
B. Change in clothing pattern.
Another major cultural transformation can be observed in the clothing patterns of people. Globalization has motivated people to wear new designed clothes. Today people are fascinated to wear new fashion and designs of clothes that is jeans, shirts, tops, skirts, jackets, T-shirts, shoe and other dress materials of their choice and brands. Wearing these type of dress materials has become status symbol. Here it is significant to mention that people have forgotten their traditional dress.
However, it is very much imperative that globalization has brought drastic changes in people’s clothing patterns. People are gradually giving up traditional clothes wearing and tempted to wear new design and style of clothes. Of course, it is also important to note that now-a-days people can buy any global brands and designs of clothes from markets. For example Addidas and Reebok from Germany, Levi’s and Nike from U.S.A. All these products are available in all part of the world. At same time traditional Indian dress- dhoti, sari, lehanga Chunni, Kurta- Payjama and other dress materials are available in U.S.A, Canada, England, Australia, Africa, and South American and Asian countries.
There fore globalization has brought total change in clothing patterns of the people all over the world. Dressing pattern of the people has become a fashion. Fashion technology is not producing new designs of clothes, according to people’s choice and interest, but boosting textile industry, generating global markets, providing employment opportunities, earning income and so on.
C. Change in Food Habits
Globalization has remarkably changed food habits of people and brought revolution in food processing business and markets as well. As a result of this, different taste and verities of global foods are available in the local markets. One can consume verities of dishes in one’s own country that is, burger of U.S.A, Italian pizza and Chicken biryani of Middle East. Coke, Pepsi and other beverages of U.S.A and other countries are very common which are being seen in each and every country around global market. South Indian foods especially dosa, idally, sambar, pickle and many more tasty dishes are equally available in European, American, African, Asian and Pacific countries. These food items are available not only in restaurants but also in star hotels and in other food resorts where these are being served in the name of continental dishes.
It may be mentioned here that urban people often feel to change their traditional food, and taste other country’s food. This has created demand developing restaurants and food resorts like Mac Donald’s, Domino’s Pizza, Pizza Huts, Nestle, Chinese and fast-food restaurants etc.. are running successfully in many parts of the world. It has created interest in people and tempted them to invest their capital in the most demanding industry. Now this is come under high profit business. This is helping people in many ways generating revenue, earning income, and providing job opportunities for the processing countries as well as the selling countries also. There fore globalization is playing crucial role in globalizing food production and thus changing people’s food habits too.
D. Change in Automobile production.
One of the most striking cultural changes is in the production of automobiles, especially cars, buses and mopeds. Global markets have been flooded with international brands of cars, bikes and buses. One can buy and drive any brands of cars or bikes in one’s own country, producing countries are selling their vehicles in all global markets. Different brands like B.M.W, Mercedes Benz, Volkswagen, Audi, Opel, CRV, Maruti, Indica and Chevrolet are available in different models with varying speeds are being sold like “hot cakes”. Every year four or five new models of cars are coming to the international markets and people are very much enthusiastic to buy them.
The automobile business is flourishing day by day all over the world. This sector is garnering foreign exchange, providing employment to skilled and unskilled laborers, generating income, stimulating entrepreneurships, and boosting market economy and of course, accelerating socio-economic development in the society. On the other hand, production of vehicles is not only used for transportation but also as the means of cultural transformation as these cars and bikes are the product of human brains and ideas. In this way, people get an opportunity to intermix with other cultures and understanding cultural values.
E. Diffusion of Communication.
Impact of globalization has also received overwhelming response in the field of communication diffusion. In real sense, communication system is connecting the whole world and bringing people closer to each other. Communication revolution equally promotes globalization of culture through television, telephone, computer and Internet. In this way, globalization is underlying the uniform cultural changes through communication. Apart from entertainment, communication has also enabled the people to understand the culture and other aspects of global phenomenon. Today one can easily know what is happening in Africa, lifestyle of people there, their socio-cultural life etc.. However, transmission of cultural values on T.V channels is the diffusion of culture.
Telephone and Internet changed the lifestyle of people very much in the field of communication. It can connect people from one corner to the other corner of the world. Internet is one of the cheapest means to convey message. So globalization is bringing whole world under one cultural umbrella through communication. Therefore, above discussion reveals that globalization permits people to receive and exchange cultural values through different means of communication not only connect one part to other part, but also unify the cultural values of the world. Today people are using international brands of electronic devices. In this way, globalization is displaying uniform culture through the means of communication and diffusing across the world.
Assessment of globalization’s impact on cultural change is a difficult task as it has produced unprecedented transformation in the global society. This change is discernible in the realms of economic development, transformation of social life of the people and cultural landscapes. This change has spurred the emergence of new cultural spectrum. However globalization has brought rapid place of change in socio-economic development and cultural
order of the society. In order to make the process of globalization more successful and meaningful, there is need to involve each and every country and all segments of the society. So that fruits of benefits could reach every one in equal proportion.
IV. Impact of globalization in Higher education.
The impact of globalization in the field of higher education is far reaching. Today the Indian aspirants can select subjects at their own choices and can pursue studies. We can see that foreign universities directly enter our country and attract students to their universities. This is an effect of globalization in the field of higher education. Foreign universities offer immense scholarships for their students (across the world). Many foreign students also pursue their education in our universities. This give and take policy in the field of education helps in the import and export of educational culture of this world. It is a fact that foreign universities are always ahead in modern technologies. Due to globalization, such technological advances also reach our country through the students who preserves study in foreign universities. Due to globalization, it is easier for students from different countries to study abroad. Students from different parts of the world can study different subjects of their choice. The greatest blessing of globalization is that in all the international universities there exist a good relationship between teachers and students.
Due to the influence of globalization, most of the universities provide/ offer scholarships for the students to study at international educational institutions. Today there are many more subjects that a student can at international universities. Especially in the case of study of language, today there are no restrictions, that is one person can study many languages that he wants at international universities. Twenty years ago, a person could study only one or two languages from a reputed international educational institution. Now all have changed. Today the internationally reputed institutions have a competitive spirit in giving quality and standard education. All most all the universities pay greater attention in providing quality education.
Due to globalization native students are in a better positions to interact with students from different nationalities, also there is an exchange of cultures, and it is easier to learn about other culture. Globalization helps students in getting international exposure. Globalization enhances moral values and helps in the exchange of ideas. The net outcome of globalization in the education field has been very beneficial. It has created many opportunities for the student community.
Structural shifts in Higher Education
There are some structural shifts in higher education due to globalization; some of the most conspicuous shifts are set out below.
From To
1. Social science/ Humanities, Professional and
basic sciences technical courses.
2. Knowledge. Skill.
3. Process (Teaching/learning) Product (the student).
4. Access/ Equity Quality / Excellence.
5. Social Relevance Market Relevance.
An aftereffect of globalization is the mutual exchange of modern knowledge in the field of education, especially the development in the field of medicine and technology. In conclusion, the after effect of globalization is the exchange and development of culture, heritage, research, interaction with students and teachers, upliftment of educational standards etc…
Conclusion
Globalization rests on the argument that we are experiencing quantitatively and qualitatively different levels of international integration in the area of finance and production. Many now believe that the Western model should be applied everywhere. Globalization has made the world smaller and every one became savvier. In contrast, the underlying assumption with globalization is that the whole world is moving in the same direction towards the same destination. It is becoming and should become more and more like the west. The new attitude is driven by many factors. The emergence of an increasingly globalized market has inculcated a belief that we are all consumers now, all with a similar identity.
Globalization certainly produces winners and losers. The production becomes more concentrated in a more integrated world. The history of capitalism since the very beginning has been the history of western expansion and the system was always global. Thus, it is incorrect to say that globalization is totally new.
Bibliography
1. M.Kunhaman. “Globalization a subaltern perspective” Trivandrum
Published by K.A. Mani Ram for Center for Subaltern studies.
Date of publication 2004.
2. Barata, G.S and Dangwal, R.C. “Globalization and liberalization: New Developments”. New Delhi: Deep and Deep publications Pvt Ltd.
Date of publication 2000.
3. Ruberstein, James M. “ The Cultural Landscape: An introduction to Human Geography.” New Jersey: Prentice Hall.
Date of publication 2002
4. Bibek Debroy “ Globalization and Anti-Globalization: An Indian Perspective”.
An article Published by Liberal Group Kerala.
Date of publication 2004.
Globalization generally refers to a package of socio-economic reforms that include liberalization, privatization and global interaction with special focus on market economy and economic efficiency in all sectors. Therefore, globalization is a process that involves the entire world, leaving marks on every human activity. How ever, it describes growing global interconnectedness and represents a significant shift in the spatial form of socio-cultural relations. Further more, it involves the organization and exercise of power at global scale. In this way, the interaction between local and global process becomes increasingly important. In other words, globalization is a multidimensional process, which characterizes homogenization of economy and culture, increased connectedness and interdependence. It applies to the whole range of socio-economic relations and all aspects of social life from the food we eat to the clothes we wear and the substantionability of environment. It is true that not all small units are disappearing under globalization some do survive. Due to globalization, small units must be globally competitive through technology up gradation. In other words, what is relevant is not just globalization but glocalization that is globalization at the local level.
I. Indian perspectives of Globalization.
If one is going to talk about globalization, the term globalization must be defined. That is the easy party. Globalization is defined as free cross border flow of goods, services, capital, labor, information, ideas, and intellectual property. Everything in fact. Globalization has a descriptive component, as well as a prescriptive one, the latter is more important than the former. The former is simply a factual statement. Today globalization is a faster one. There are however two differences between earlier phase of globalization and the present one. First, the speed of change is faster. Second, because most flows (including capital) are private ones, governments have become less powerful in controlling or determining the shape of globalization. Indian reaction to globalization cannot be considered independent of Indian reactions to liberalization. Globalization is so far as it only concerns the external sector, a subset of liberalization. According to the state reforms, it is more pertinent to say that non-liberalization is a subset of non-globalization.
The Canadian publisher Campbell Hughes had the following definition of a Canadian (related with globalization). “ A Canadian is someone who drinks Brazilian coffee from an English tea cup and munches on French pastry while sitting on his Danish furniture having just come home from an Italian movie in his German car. He picks up his Japanese pen and writes to this Member of Parliament to complain about American take over of the Canadian publishing business”. This is a very apt description of the urban Indian middle class.
The liberalization agenda is well known. Once liberalization is implemented, the globalization agenda will follow. That does not need debating. The question to ask is, why is it difficult to push through this agenda? The implicit assumption is that politicians and political parties do not know what is good for enough. They are irrationals. They do not realize that good economics is good is good politics. This is probably a facile assumption. Politicians and political parties are just as rational and anyone else. The reforms have increased disparities states, this is increasingly reflected in higher rates of growth in Gujarat, Maharashtra, New Delhi, Calcutta, and some of the South Indian states. The faster growing states also tend to have lower rate of population growth, leading to higher rates of per capita growth. But there is no evidence yet, of relatively backward states learning from the experiences of faster growing states and replicate that experience.
If one divides voters into urban and rural segments, the evidence is more like the following. Rural voting patterns rarely reflect economic issues and are influenced much more by the local considerations. Urban voting patterns do reflect economic issues, including liberalization. But if the earlier arguments are accepted, the conclusion is that there was support for globalization; because the middle class benefited as consumers. How ever increasingly, one has lost the support for liberalization, since the middle class tends to lose all producers. The three positive developments need to be mentioned.
Firstly, there is some limited evidence that the worst of the downturn is over. Three major segments of Indian society (large-scale industry, small industry, agriculture) have suffered for various reasons and have inevitably ascribed all their travails to globalization and W.T.O. Large scale industry wants high profitability and wants to postpone the
inevitable shakeout. Small-scale industry wants protection, especially since there is import competition. In general, agriculture has been squeezed by high input prices and large farmers and millers want government-guaranteed high procurement prices. With the worst of the downturn over, it should become easier to push through reforms.
Secondly, agriculture reforms have been on the explicit agenda since 1998. Before that, they were not even on agenda. It is now accepted that agricultural reforms must encompass both procurement and distribution. It is also accepted that agriculture is not just about rice and wheat. Most agricultural reforms however have to be implemented by the states. That will be a long haul. But the prospects for agricultural reform are brighter than what they were three years ago.
Thirdly, despite the generalization that the middle class is against reforms, there are isolated instance of the middle class, a civil society, acting as a countervailing force and demanding better delivery on the part of the government, across a whole range of public services. With the help of globalization there are instance of NGO involvement in education (helped to push the literacy rate up from 52% in 1996 to 65% in 2001) demanding Right to Information acts, or in rating public services. This too has a pro-urban focus, but is also spilling over into rural areas.
Therefore, there is no particular reason to despair. India will be much more confident about globalization once the pre condition of liberalization takes place.
Is India benefiting from the policy of globalization?
India has been following a mixed economy approach towards economic development in which the activities of production and distribution were carried out by the government as well as the individuals. The purpose behind following such a policy was to eliminate poverty, reduce inequality in the distribution of income and wealth, and achieve stable economic growth with social justice. This approach helped India in creating a large industrial base and increase in industrial production. Many public sector enterprises went into looses due to corruption, lack of efficiency in work and ineffective management. Several other problems like shortage or adequate capital and technological backwardness led the government to revise the policy. In 1991, it was observed that the government’s expenditure far exceeded its revenue. This situation led the Indian government to borrow capital from international financial institutions such as the World Bank and IMF. Hence, a new economic policy was formed and the government decided to follow the policy of liberalization and globalization.
A number of complicated formalities like licensing, permission to import raw materials, regulation on price and distribution have been simplified to promote private enterprise. With globalization, Indian economy has integrated with world economy. In other words, we have become economically interdependent at the global or international level. Now many producers from outside our country are selling their goods and services in other countries. Globalization includes movement of not only capital, but laborers from one country to the other country as well. In this manner, Indian economy is now relating with the world economy. So that there is an exchange of capital, technology
and experience between various countries. Our government now encourages investors from abroad to invest in India.
Globalization has brought about noticeable changes in our country. We have better communication facilities and wide variety of electronic goods is now available at affordable prices. Many food-processing companies have entered our country and given us a lot choice to choose. India’s share of goods and services has increased marginally. Though some new jobs are being created in the economy, the policy has some how failed to generate additional job opportunities demanded skilled labor and technical knowledge, which was not available in rural sector.
However, there is a school of thought that rapid development due to globalization is depleting our resources and disturbing the ecological balance. It has been felt at times that the developed countries exploit the cheap labor and natural resources of the developing countries to suit their requirements. Environmentalists feel that rapid industrialization all over the world is creating a green house effect and causing global warming. Development should take place without damaging the environment and natural resources should be used judiciously so that our future generation does not suffer. The global concern today is therefore to adopt a strategy of economic growth that is eco-friendly. Eco- friendly development is called sustainable development, which is the need of the hour, and people all over the world are conscious of this issue.
Yet, another problem, which emanates due to globalization, is the encouragement of brain drain from developing countries to the developed ones. Globalization definitely encourages their process as MNC’s utilize intelligence and skilled managers of developing countries in developed countries.
II. Globalization and poverty
Globalization involves production, trade and finance. International trade has the potential to act as a powerful catalyst for poverty reduction. It can provide poor countries and people with access to markets; technologies and ideas need to sustain higher and more equitable patterns of growth.
Often in the end of discussions about poverty and globalization, critiques say that statistics give a superficial view. Economics is not everything. We should also ask poor people about what they think about globalization. We need a broad statistically sound selection of representative individuals. Recently that was done. According to the survey, 38000 people in 44 nations with coverage of the developing world in all regions, but that views of globalization are much more positive in poor countries than in rich ones.
This global attitude survey showed that only 28 percent of people in the U.S and Western Europe thought growing global trade and business ties was very good. It seems like Americans and Europeans more than others take freedom, wealth and technology for granted, without examing or understanding, the process of markets and internalization on which this depends. But people who are deprived of freedoms and opportunities see globalization as the way to get it.
Even though we have seen history’s biggest reduction in poverty, poverty is still with us, and in many places, it deepens. According to the World Bank 1-2, billions live in absolute poverty and 900 million people live in chronic hunger. History, statistics, theory and the poor themselves all say that the problem is not globalization, it is that they do not yet have access to the fruits of globalization.
III. Impact of Globalization in Culture
The impact of globalization is being felt around the world. Every country of the world wants to be part of the process of globalization. So that it can receive appropriate share of benefits out of it. It is precisely because global economy is penetrating into rural level and bringing rural economy at international level. In fact, globalization is playing important role in exchanging in economy and cultural values from one level to another. These cultural changes are practices have brought for the culture of development and culture of production.
Therefore, globalization is cutting across all geographical and political boundaries. The world is shrinking, not literary in size but in the ability and skill of people and of course, their idea to interact with people and places. However, the benefits from globalization are reaching more or less to every corner of the world and affecting every aspect of human life. Today people are plugged into global economy and culture. In this way it is producing a world that is economically, socially, culturally and politically more uniform, integrated and interdependent.
Globalization and Cultural changes
The impact of globalization on culture has been observed in many fields, that is economic, political and social. These are remarkably visible in the field of employment, education, health, people’s life style, food habits, beliefs, attitudes, knowledge, skills, ideas, thoughts, choice and objectives. Today people seem to be moving away from traditional values and are adopting new cultural values, religion, language, way of living, habits and so on; culturally, they are residing in different places, displaying fewer distinctions and more similarities in their cultural practices.
Impact of globalization on changing cultural order in relation to time and space is not easy to assess, as there is a global cultural diversification and complexities. However, dynamics of changing cultural order in terms of space and time can be examined as
A. Change in building and construction.
First change of globalization can be witnessed in the field of construction. Buildings and house built in one country or cities are being built on the similar pattern in other countries or regions. For example, underground rails, which are being built in London, New York and other cities, are also constructed in Delhi, Kolkatta and other cities of the world. Another example is construction of hotel complexes; flyovers and bridges are also constructed in many cities of the world in same architecture, which are being already built in many mega cities like London, Paris, New York, Mexico and Melbourne. Due to globalization faster means of transportations have been introduced, however building materials can be easily transported from one city or one country to another. These constructions are homogenous in architecture, shape and other aspects. How ever, it cannot be denied that globalization has brought revolution and uniformity in construction and building process. This can be termed as a uniform culture of building and constructions.
B. Change in clothing pattern.
Another major cultural transformation can be observed in the clothing patterns of people. Globalization has motivated people to wear new designed clothes. Today people are fascinated to wear new fashion and designs of clothes that is jeans, shirts, tops, skirts, jackets, T-shirts, shoe and other dress materials of their choice and brands. Wearing these type of dress materials has become status symbol. Here it is significant to mention that people have forgotten their traditional dress.
However, it is very much imperative that globalization has brought drastic changes in people’s clothing patterns. People are gradually giving up traditional clothes wearing and tempted to wear new design and style of clothes. Of course, it is also important to note that now-a-days people can buy any global brands and designs of clothes from markets. For example Addidas and Reebok from Germany, Levi’s and Nike from U.S.A. All these products are available in all part of the world. At same time traditional Indian dress- dhoti, sari, lehanga Chunni, Kurta- Payjama and other dress materials are available in U.S.A, Canada, England, Australia, Africa, and South American and Asian countries.
There fore globalization has brought total change in clothing patterns of the people all over the world. Dressing pattern of the people has become a fashion. Fashion technology is not producing new designs of clothes, according to people’s choice and interest, but boosting textile industry, generating global markets, providing employment opportunities, earning income and so on.
C. Change in Food Habits
Globalization has remarkably changed food habits of people and brought revolution in food processing business and markets as well. As a result of this, different taste and verities of global foods are available in the local markets. One can consume verities of dishes in one’s own country that is, burger of U.S.A, Italian pizza and Chicken biryani of Middle East. Coke, Pepsi and other beverages of U.S.A and other countries are very common which are being seen in each and every country around global market. South Indian foods especially dosa, idally, sambar, pickle and many more tasty dishes are equally available in European, American, African, Asian and Pacific countries. These food items are available not only in restaurants but also in star hotels and in other food resorts where these are being served in the name of continental dishes.
It may be mentioned here that urban people often feel to change their traditional food, and taste other country’s food. This has created demand developing restaurants and food resorts like Mac Donald’s, Domino’s Pizza, Pizza Huts, Nestle, Chinese and fast-food restaurants etc.. are running successfully in many parts of the world. It has created interest in people and tempted them to invest their capital in the most demanding industry. Now this is come under high profit business. This is helping people in many ways generating revenue, earning income, and providing job opportunities for the processing countries as well as the selling countries also. There fore globalization is playing crucial role in globalizing food production and thus changing people’s food habits too.
D. Change in Automobile production.
One of the most striking cultural changes is in the production of automobiles, especially cars, buses and mopeds. Global markets have been flooded with international brands of cars, bikes and buses. One can buy and drive any brands of cars or bikes in one’s own country, producing countries are selling their vehicles in all global markets. Different brands like B.M.W, Mercedes Benz, Volkswagen, Audi, Opel, CRV, Maruti, Indica and Chevrolet are available in different models with varying speeds are being sold like “hot cakes”. Every year four or five new models of cars are coming to the international markets and people are very much enthusiastic to buy them.
The automobile business is flourishing day by day all over the world. This sector is garnering foreign exchange, providing employment to skilled and unskilled laborers, generating income, stimulating entrepreneurships, and boosting market economy and of course, accelerating socio-economic development in the society. On the other hand, production of vehicles is not only used for transportation but also as the means of cultural transformation as these cars and bikes are the product of human brains and ideas. In this way, people get an opportunity to intermix with other cultures and understanding cultural values.
E. Diffusion of Communication.
Impact of globalization has also received overwhelming response in the field of communication diffusion. In real sense, communication system is connecting the whole world and bringing people closer to each other. Communication revolution equally promotes globalization of culture through television, telephone, computer and Internet. In this way, globalization is underlying the uniform cultural changes through communication. Apart from entertainment, communication has also enabled the people to understand the culture and other aspects of global phenomenon. Today one can easily know what is happening in Africa, lifestyle of people there, their socio-cultural life etc.. However, transmission of cultural values on T.V channels is the diffusion of culture.
Telephone and Internet changed the lifestyle of people very much in the field of communication. It can connect people from one corner to the other corner of the world. Internet is one of the cheapest means to convey message. So globalization is bringing whole world under one cultural umbrella through communication. Therefore, above discussion reveals that globalization permits people to receive and exchange cultural values through different means of communication not only connect one part to other part, but also unify the cultural values of the world. Today people are using international brands of electronic devices. In this way, globalization is displaying uniform culture through the means of communication and diffusing across the world.
Assessment of globalization’s impact on cultural change is a difficult task as it has produced unprecedented transformation in the global society. This change is discernible in the realms of economic development, transformation of social life of the people and cultural landscapes. This change has spurred the emergence of new cultural spectrum. However globalization has brought rapid place of change in socio-economic development and cultural
order of the society. In order to make the process of globalization more successful and meaningful, there is need to involve each and every country and all segments of the society. So that fruits of benefits could reach every one in equal proportion.
IV. Impact of globalization in Higher education.
The impact of globalization in the field of higher education is far reaching. Today the Indian aspirants can select subjects at their own choices and can pursue studies. We can see that foreign universities directly enter our country and attract students to their universities. This is an effect of globalization in the field of higher education. Foreign universities offer immense scholarships for their students (across the world). Many foreign students also pursue their education in our universities. This give and take policy in the field of education helps in the import and export of educational culture of this world. It is a fact that foreign universities are always ahead in modern technologies. Due to globalization, such technological advances also reach our country through the students who preserves study in foreign universities. Due to globalization, it is easier for students from different countries to study abroad. Students from different parts of the world can study different subjects of their choice. The greatest blessing of globalization is that in all the international universities there exist a good relationship between teachers and students.
Due to the influence of globalization, most of the universities provide/ offer scholarships for the students to study at international educational institutions. Today there are many more subjects that a student can at international universities. Especially in the case of study of language, today there are no restrictions, that is one person can study many languages that he wants at international universities. Twenty years ago, a person could study only one or two languages from a reputed international educational institution. Now all have changed. Today the internationally reputed institutions have a competitive spirit in giving quality and standard education. All most all the universities pay greater attention in providing quality education.
Due to globalization native students are in a better positions to interact with students from different nationalities, also there is an exchange of cultures, and it is easier to learn about other culture. Globalization helps students in getting international exposure. Globalization enhances moral values and helps in the exchange of ideas. The net outcome of globalization in the education field has been very beneficial. It has created many opportunities for the student community.
Structural shifts in Higher Education
There are some structural shifts in higher education due to globalization; some of the most conspicuous shifts are set out below.
From To
1. Social science/ Humanities, Professional and
basic sciences technical courses.
2. Knowledge. Skill.
3. Process (Teaching/learning) Product (the student).
4. Access/ Equity Quality / Excellence.
5. Social Relevance Market Relevance.
An aftereffect of globalization is the mutual exchange of modern knowledge in the field of education, especially the development in the field of medicine and technology. In conclusion, the after effect of globalization is the exchange and development of culture, heritage, research, interaction with students and teachers, upliftment of educational standards etc…
Conclusion
Globalization rests on the argument that we are experiencing quantitatively and qualitatively different levels of international integration in the area of finance and production. Many now believe that the Western model should be applied everywhere. Globalization has made the world smaller and every one became savvier. In contrast, the underlying assumption with globalization is that the whole world is moving in the same direction towards the same destination. It is becoming and should become more and more like the west. The new attitude is driven by many factors. The emergence of an increasingly globalized market has inculcated a belief that we are all consumers now, all with a similar identity.
Globalization certainly produces winners and losers. The production becomes more concentrated in a more integrated world. The history of capitalism since the very beginning has been the history of western expansion and the system was always global. Thus, it is incorrect to say that globalization is totally new.
Bibliography
1. M.Kunhaman. “Globalization a subaltern perspective” Trivandrum
Published by K.A. Mani Ram for Center for Subaltern studies.
Date of publication 2004.
2. Barata, G.S and Dangwal, R.C. “Globalization and liberalization: New Developments”. New Delhi: Deep and Deep publications Pvt Ltd.
Date of publication 2000.
3. Ruberstein, James M. “ The Cultural Landscape: An introduction to Human Geography.” New Jersey: Prentice Hall.
Date of publication 2002
4. Bibek Debroy “ Globalization and Anti-Globalization: An Indian Perspective”.
An article Published by Liberal Group Kerala.
Date of publication 2004.
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