Litres of milk

The Bentonville beast has set up an extensive target of sourcing 1.5 million litres of milk per day and once the complete sourcing mechanism is in place, it will start working on setting up a dairy processing unit. Clearly, Wal-Mart is trying to milk out every possible opportunity from Indian soil. Companies entering this sector are avid for alliances with local part ners. And with Indian dairy farms being still dominated by small-scale unorganised sectors, which are loaded with poor infrastructure and a plethora of other issues, local players have all reasons to tie-up with global players. Cashing in on this inherent symbiosis, Nestlé India has tied-up with Andhra Pradesh based Heritage Foods India Ltd, Bengal’s Nester & Maharashtra’s Dynamix Dairy. With definite conviction, Nestlé is strengthening its sourcing hub across India and hence it’s palpable that the FMCG giant has put a stymie to the much hyped market buzz of exiting the dairy business. The FMCG giant is upbeat on this oyster segment and has already created Moga in Punjab into a procurement haven. So it’s no surprise that the Moga unit contributes an extensive amount of one million litres of milk per day to keep Nestlé’s milky affair a non-stop one. What Wal-Mart and Nestlé are trying to do now, two of the country’s leading co-operative majors have been doing for the past three decades.

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Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Serenading the Indian ‘cash cow’!

The Indian dairy sector is bracing itself for an ‘organised’ upheaval
Tired of haggling with your milkman every morning over petty issues? Well, he deserves your sympathy rather than your scorn, for your neighbourhood milkman may soon be a thing of the past, thanks to ‘organised’ intervention in the sector both from India and overseas. With Wal-Mart CEO Lee and his team hunching out massive plans to ‘milk’ super colossal profits from the dairy sector in India, you could well imagine events getting quite nasty for the largely unorganised players. In the same league, Yakult Danone India, a joint venture between Japan based Yakult Honsha & Group Danone of France, is also gearing up to roll out their manufacturing unit for dairy products near the capital. With India being the largest producer of milk in the world & Rabo India Finance extrapolating Indian dairy market to reach an exorbitant Rs.4.4 trillion, players across the globe have lined up to mint money from the Indian cash cow. The world’s largest retailer – Wal-Mart will soon start sourcing milk directly from farmers in northern Indian states. To rope in as many farmers as possible and also to grab some from rivals, Wal-Mart is offering prices phenomenally higher than existing players.

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Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

leaner, more productive company.

Even China couldn’t resist this! The state investment agency of China has announced plans to invest $3 billion in US private equity firm Blackstone in a landmark deal for the industry and the government. The agency, which was only established in March, will acquire the stake at 95.5% of the price to be set in Blackstone’s flotation, which is planned for later this year. The purchase of a stake, which will be just under 10%, values the whole of Blackstone at $30 billion. The Chinese government typically invests most of the reserves in more secure though lower-yielding US Treasury bonds.

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Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Illegal activities

Poverty and poaching go hand in hand. Is it realistic to hope for an end to poaching as long as a sizeable number of people in the country remain poor?
Given a choice, most people will not indulge in illegal activities. Poor people living on the fringes of good wildlife habitat oft en turn to poaching, or assisting professional poachers, not because they want to but because otherwise their families would starve. And of course there are also ‘bad hats’ in every community and society to encourage this. We have let down forest fringe dwellers by not off erring them alternatives and opportunities to better their situation. Corruption plays a large part in this, for even where there are schemes to help these communities, they oft en do not benefit the people they are supposed to. In Ranthambhor, for instance, a tiger poacher confessed that he had used the money he made to buy gift s for his family and to organise a puja for his dead grandmother’s soul.

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Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

TCS

Down now, but TCS has immense potential to bounce back among the crème in the 4Ps B&M rankings soon
An important player in the booming IT sector, Tata Consultancy Services (TCS) boasts of possessing more than 70,000 associates worldwide. Courtesy its fledging state-of the- art consulting services and enviable Global Network Delivery Model, TCS recorded revenue earnings of a staggering $4.3 billion for FY07. Agnello Dias, National Creative Director, J. Walter Thompson’s attributes TCS’s success to the company managing to outlast prevailing market trends and ride over them. “They were steadfast with their vision irrespective of the circumstance,” he says. Looking to strengthen its position in the global market, TCS launched “Experience Certainty” during the last quarter, which made it the first Indian corporate to come out with a global branding and marketing campaign.

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Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative