Category: Business in India

Podcast with Sumir Chadha

Sumir Chadha is the MD of Sequoia Capital in India and over the weekend I got this podcast from Iinovate with him.

It was interesting to say the least. He talked about a lot of generic stuff but these are my takeaways from it.

What kind of companies do you like?
• Large market opportunity – a lot of people should be ready to use your product/service
• The management team should have an exceptional customer understanding.
• 100 mn in revenues, cos we want to make 10 times the money we invest (these are ballpark figures)

What Indian IT lacks?
• Product Management
• Marketing Skills
• Technology markets are in the west
⁃ But this will change over the years
• Research and entrepreneurship are treated differently whereas in US, researchers create companies based on their original research.

Why Entrepreneurship?
• Change the world
• Revolutionize something
• Making money – Money is always a byproduct rather than the primary objective.

He also adds a lot of other things like a startup should be geographically close to where their customers are, Importance of learnings and open exchanges, research and entrepreneurship.

As always good to hear people from the industry talking. Not a very good podcast but certainly worth the time.

Fake Characters

Inspired by work done by Phonethics, I also thought I would create some characters. And some lives. Here is the first draft.

Koncious Kapoor

KK is our typical metrosexual Indian. He belongs to a very small time in UP and his is the first family to have stepped out of their town. They hence have an elevated status amongst their peers. Kconcious Kapoor has studied in a boarding school and although he has a modernish outlook towards life, he is still conscious of his background and upbringing. Like any typical young Indian, he wants to get rich quick, become famous and is really scared of facing an audience.

Khoob Bai

Everyone knows that KB is 35ish, claims to be 25ish, looks 30ish and is 45ish in real. She does everything including cleaning utensils, scrubbing floors, acting as the informal communication channel between young lovers, delivering gossip and obviously peeping on personal affairs of her employers. She knows more secrets than the FBI, CIA, RAW, The Mossad, MI6 and KGB combined. And she keeps dropping hints about her (in)famous access to information. She promises her loyalty to everyone but she is loyal to only one thing – money.

Totaram Sharma

better known as Sharma Ji in his colony and Sharma Babu in his office. He is a struggling middle aged government employee who has been a clerk since last 30 years and has seen two salary hikes and one promotion. He is a perpetual landmark on his office canvas. All the kids in his colony hate him for his never ending cribbing about noise and ruckus that these kids make. He has two teenaged daughters that add to his agony in life. He is also known for speaking for hours without making any sense at all.

Toofan Kumar

is in a perpetual state of hurry. He is rushing for something or the other. He even talks as fast as he walks. Folklore has it that he was last seen relaxing when he was standing in the visa queue to US of A. He thinks that world today is full of opportunists and he needs to do something about it. He feels very passionately about all the popular social causes and actively participates in debates around these. Motive is not to save trees or prevent child abuse but to pave a road for his political dreams. And of course the visa was rejected.

Happy Singh

is a typical surd. Happy go lucky, content and hungry – all three at the same time. Thanks to his beard, no one knows where his smile begins and ends. Or if he is smiling at all. He is on the heavier side and has an insatiable appetite. Every time he sees a cow, goat, chicken or any other animal of edible quality, his hunger pangs strike him. He is still single with no immediate plans or chances either. His family lives in Ludhiana and thus he has all the money he needs to live comfortably without working.

This has potential to become a huge business by itself. Not on the lines of what Phonethics is doing but something else. Keep watching.

Ceat, Shoppers Stop and Godrej Rebranding stories

Three very big Indian brands have gone for a makeover. Godrej, Shopper’s Stop and Ceat. Before I get into a long rhetoric on these individually, I think except Godrej, Shopper’s Stop and Ceat have got it wrong.

Godrej Industries Ltd.
Godrej has added colors to it age old logo. Shoppers’ Stop and Ceat have completely changed their looks. Also, Shoppers’ Stop says “Change is Good” and Ceat says “Change is here”. I wonder if both these have been created by same team?


Godrej the behemoth that sells everything from shoe polish to animal feed to almirahs to locks to lavish food for rich to real estate to a lot of things unimaginable has got a new look. They did not do anything drastic. They retained their logo. Added some animation, color and jazz to it. As a customer I love what they have done. For me I have grown up in house where we had tons of Godrej almirahs and locks and for me Godrej means trust. Is the new look enhancing that? No it does not but it gives me a sense that owners are trying to reinvent the old company and are committed about it. And since And are they doing it because a Godrej Properties is planning to come with its IPO?

Shoppers Stop
Coming on to Shopper’s Stop, its is a chain of premium retail megastores. They sell clothes, accessories and other fancy things that riches and the great Indian middle class buys. In fact they are amongst the first players in Indian retail industry to have experimented with large format stores and organized retailing. Their earlier logo and identity was very classy by Indian standards and for the last 10 odd years that logo has been itched in the minds of the customers. It had everything a premium brand’s logo should have – curves, stars, symmetry. It was very very appealing.The new logo is anything but premium and yet is a good piece of work on a stand alone basis. But moment you compare it with older logo (and comparison is inevitable), it looks dull. It looks like someone has stepped back in time. To start with it is plain text in a font that can be used by anyone and everyone. A plain text logo could have been good if you added colors, gradients or other elements to break the clutter (hint Godrej). But that too is missing. I think they wanted more serious and elegant look for the brand and the logo has failed to deliver that. I would say this was created by an amateur designer trying random text layouts.

I have no clue what warranted the need for a change in logo. I understand that Shoppers’ Stop is coming up with an IPO but did it require a change in look?

Ceat Tyres
Ceat is one of the oldest tyre manufactures in the country. Its a publicly traded company and although I have not had any interactions with their business (never purchased a ceat product), have heard a lot about them. The new logo looks like a half baked pie. Its like work in progress and first time I saw it, I could not relate it to the type manufacturer. When I read the headline, that was the time I realized that it was ceat they were talking about.

As a customer and as an observer, I like their earlier logo better. It had a meaning to it. I could see a rhino and I could conjure an image of a vehicle running on a ceat tyre negotiating hard curves. The new look might also have a road (the E looks like a road with a divider) but it fails to conjure any kind of imagery. Is there a trend in design houses to move towards plain text fonts with minimal use of colors? Or both Shoppers Stop and Ceat have been done by the same agency with a Creative Decision Maker believing that plain text is good and we should talk about change to go along with that?

Its often said an organization is as good as the decision makers it has. I dont really think design teams for both Shoppers Stop and Ceat have done their homework and tried to design a contemporary look. And they should consider the fact that people do not buy products or services. They buy and consume brands. And brand is something that makes the decision process for the consumer simpler. Not more complex by creating conflicting images in their minds.

Design, Advertising and financial markets may sound very different but there is indeed some kind of a relationship. Any more IPOs or redesigns coming up .. ?

P.S.: All the comments are not from an aesthetic point of view. I am hardly a person who has good design sense. I am talking from the perspective of a customer. I have tried to think how would a customer feel when he is interacting with a brand that is supposed to be premium.

All three companies trade on the stock exchanges and I own certain number of shares of Godrej Industries ltd. I might or might not choose to buy/sell these shares.

And I just realized that I am indeed passionate about brands and way consumers think abut brands. As a very good friend would say .. “Aha” moment of the day !

Tags: IPO, Indian Financial Markets, Godrej, Ceat, Shopper’s Stop, Retail, India, Design, Logo, Re-design, Advertising, Marketing, Branding.

Analyze vs Act

Yesterday I was reading The Ambler Warning by Robert Ludlum and he talks about this interesting 1v1 dilemma. Act vs Analyze.

There are basically two kinds of people. People who analyze and people who act.

The ones who analyze things are in great demand. Most of managers, consultants, experts are generally the ones who analyze. They look at any situation with an analyzing mind, often use decision trees, rely on expertise and use tools to find solutions to the problems they are facing. Their motivation is to make a rational decision and they need an anchor to base their decision on. Ambiguity does not have any place in these decisions. They have created and live by terms like water-tight, rational decisions etc.

And then there is a second breed of people. People who act. They do. They are the ones who don’t really understand, cant really explain and don’t believe in analysis, research and other frivolities around decision-making. They claim that they just know when a thing is correct and when something is missing. They use words like gut feel, guess work, spur-of-the-moment, knew-it-all-along etc. These people are more likely to be sportsmen, entrepreneurs etc. who rather live on the edge than to wait in the conference rooms or meeting halls.

You could be someone who either acts or analyzes. There is nothing wrong on picking either. Its all about personal comfort (and breaking away from it).

Me, I have relied all my life on analysis. I think its about time I move on to action (wow a discovery… Action comes from Act).

Originally posted here.

Related list of 1v1s
– 1v1: Excellence vs Mediocrity
– 1v1: Expert vs Employee
– 1v1: Popular vs Pertinent

Guiding principles for a company

Symbionese Liberation Army was a terrorist organization based out of USA.

Their philosophy came from the seven principles of Kwanzaa (a seven-headed snake), with each head representing a principle. They are: Umoja (Unity), Kujichagulia (self-determination), Ujima (collective work and responsibility), Ujamaa (cooperative economics), Nia (purpose), Kuumba (creativity) and Imani (faith).

I think all these are awesome principles to create a company on.

More Rational thoughts on the reservation policy in India

The last piece I wrote was an emotional outburst. This is more rational argument on reservations. I shall try to figure out the impact of reservations, thoughts on what could have been done and finally is there any hope?

Ok why reservations in the first place?
Reservation was the card played by the VP Singh govt. when they decreed for the first time that India needs reservations to help the lower castes. Some people credit their win at the centre to this card only. Obviously its a thing of past and no one can say what really happened. After-all history is written by people who win the battles.

I am not saying that reservations is a card that is played when you want to elections. You actually want to help the backward classes. You are motivated by general upliftment of the country.

Is it really going to help?
I have my doubts. These doubts are based on following observations.

  1. I don’t have numbers but I am told that at engineering colleges of repute (not the ones that are opened in small homes on outskirts of Bangalore), the candidates admitted from reserved classes don’t pass at all. Most of them flunk in first and second year and stop studying thereon.

  2. Then a lot of seats for reserved categories are filled with people getting less than 10% marks. End of the day education is about quality of students and maturity of interactions between them. If there are 53% people from general categories and average scores of 80, and 47% of people with average scores of 20, what kind of discussions are we talking about?

  3. There seats remain empty because there aren’t enough applications in the first place to grant admission to people belonging to reserved categories. If an institute can intake 100 students and it has to start a course with 80 students only because we could not find enough people to take reserved seats, aren’t we depriving other students of an opportunity to study?

Obviously I don’t have numbers to prove or reject these claims. Can someone help me with this?

To end this chapter (if I may say), honestly I don’t think that reserving more seats is going to help. They should rather try to find out why do people from these classes perform this bad in the first place. Is there a flaw in the primary education system? Is it because they assume that education for them is going to be easy and hence no need to put in effort?

What will be the impact and what could be possible outcomes?
Impacts would be many-fold. For the students that avail this opportunity, students that are now deprived and the country itself.

  1. Reservations means that only the best from the education system get into quality higher institutions. What happens to people who were average? They would have to settle for below average education. And because of this, they would miss the opportunity that could have transformed them from average to exceptional.

  2. This also means that general quality of education will come down. Not because people from reserved categories cant perform or they lack intelligence. But because they are not equipped to face higher education. Mind you a person can be intelligent and ill-equipped at the same time.

  3. Brain-drain might be back. And with a bang. I can already foresee a lot of talented budding doctors, engineers leaving the country in search of a place where their talent is respected. Not their castes.

  4. All the hoopla about FDI and India’s growth story might be in for a rude shock. If I was Microsoft or Google or Suzuki for that matter, I would not want to set shop in India because I know that finding good people would be tough and costly. It would also mean that business environment is unconducive. And once the growth story stops, then its a debate for another day if the country would grow or not.

Is there a way to help backward classes?
Getting a reservation done at under-graduate level does not guarantee that the life standard would improve. This move might create a large work force that is unemployable. And this would bring in more frustration. You are educated and cant find a job. From personal experience, I know for a fact that there is no feeling worse than that.

So what can we do to change things for people who have been oppressed? To start with I think we need to change the way they live. A child learns as much from his parents as from his surroundings. How about taking a cue from Madarsas and Gurukuls and replicate this in mainstream? These are the places where gurus preach and teach kids about virtues of life. Make them aware of the world around them. If we cant provide quality education to these kids at formative stages of their lives, how about making the system unconventional.

I used to work with an NGO called Pratham and they used this concept really beautifully. They would take a community and teach all the underprivileged children there. Mind you – underprivileged, not the reserved category. And they did it very well. That model runs on a self-sustaining model and is awesome. Can share more details if someone is interested in knowing more about it.

What can be done to mark protest against this move?

  1. How about getting talking to all bloggers to write about it? At least the ones with reach like Mutiny, DesiCritics etc.?

  2. Can this be a topic for blogathon? Anyone from their team listening/reading?

  3. Help YFE and other forums with online propaganda and marketing.

  4. Make an online task force and spam news websites with comments, thoughts and opinions. And make these quality comments so that they have to raise it on their prime-times. Knowing Indian media, they would anyways do anything to hike their TRPs.

  5. I am strongly against any kind of mass agitations that stops the normal functioning of the country. I voiced my opinions on the medico strikes, batti bandhs etc. I think I was wrong when I took that stand and I need to change. Now I am neutral to it. Is there a strong case of a mass agitation?

I am simply out of ideas. Can someone please put forth more thoughts so that we can actually do something constructive rather than just debating? Another peril of Indian education system is that we start debates and never finish things. Lets come forward with solutions rather than talking about things.

To end this on a light note, I was thinking about way forward for people who advocate reservation

  1. Just education is no point. We need to reserve places on the buses also. How about roads? Special clubs for reserved categories. Does someone remember ‘Dogs and Indians not allowed’ posters? How about ‘dogs and unreserved not allowed’ posters? Come to think of it, this could be an awesome article.

  2. Now that we have reservations for SC, ST, OBC, how about talking about reservations on the basis of religion? region? height of a person. Imagine – we only accept applications from people who are 5 feet 7 inches and weight 150 KGs.

  3. How about creating small states for every simgle category that you can identify and then ruling over them? Who wants 29 states. Lets split India into 19043 states all with homogeneous people. There could be a state for people who are bald and have Sharma as their surnames. Oops what about ladies then? Will they marry inter-caste, inter-state? Will these be approved?

Please understand that views submitted are personal only and might be flawed. Please help me see the correct picture.

Crossposted

Thoughts on entrepreneurship

I was reading this presentation made by Axis Holding’s Kuntal Shah at VCCircle’s event at Pune.

One of the slides had this quote …

I do not choose to be a common man. It is my right to be uncommon…if I can. I seek opportunity…not security. I do not wish to be a kept citizen, humbled and dulled by having the state look after me. I want to take the calculated risk; to dream and to build, to fail and to succeed. I refuse to barter incentive for a dole; I prefer the challenges of life to the guaranteed existence; the thrill of fulfillment to the stale calm of Utopia. I will never cower before any master nor bend to any threat. It is my heritage to stand erect, proud and unafraid; to think and act for myself, enjoy the benefit of my creations and to face the world boldly and say: This, with God’s help, I have done. All this is what it means to be an entrepreneur.

Although I dont agree with God part but I couldn’t have said this better. And re-affirmed my belief in entrepreneurship. Something to cheer up post reservation news.

Reservations in India – A reality now

Rediff.com says that Supreme Court of India has given its nod to 27 percent reservation to the OBCs. They have excluded the creamy layer from the reservation and they have said that this reservation would be periodically reviewed.

I have only one thought on my mind. Why did I ever study? All I could have done was wait for this day to come, get a fake certificate by paying a babu some 500 bucks, score less than average on JEE or CAT, get into the best educational institution in India, get a fat pay packet and live happily ever after.

I understand that we are a democratic country and we have to win elections, we have to divide the voters and win the electorate and we have to create a fuss on our “national son” not joining the cabinet. But want about the future of the nation? Aren’t these educational institutes supposed to nurture the talent for tomorrow? Are we going to run the nation with engineers and managers and doctors who are below average?

I am not saying even for a minute that OBCs cant perform as well as regular people. These castes and creeds were made in ancient India because of the way country was ruled. This in my opinion should have been abolished by the constitution in the first place. All I am trying to say is that because of the reservation, many deserving candidates would now have to go for alternative careers.

Also wouldn’t this incident set up precedents for every other group of people? Currently it is MNS in Maharashtra that is talking about reservation on the basis of region. There are certain groups that are asking fore reservation on the basis of religion. Tomorrow every tom dick and harry would want a reservation because they are different. What if I get 10,000 supporters and since I am bald, I demand reservations for bald people? And what if we start granting these reservations, a day shall come when majority of population that falls under “regular”, “non-reserved” category would be fighting for 10 seats. May be they can then demand reservation for “unreserved” category. Arent we dividing the country ourselves? Aren’t we doing what East India Company did to us?

And what about all those hate crimes that would now happen? I can already see these institutions polarizing in two sects. One from the reserved categories and one from unreserved. What about the poor unfortunate students that will have to face the brunt of the entire political drama?

Whatever has happened is unfortunate. There are other better ways to help OBCs reach a good living standard than reservations. I had high hopes on the Supreme Court of India. They have proved correct in the past but this time, at least in my opinion, they have made a mistake. No amount of argument would now dissuade me from speaking against education system in India.

I am so sorry to have voted for a govt. that took this step and I feel cheated right now.

Author took all the entrance tests that a school kid can take after his 12th class examinations. Got through one test to join a course at Delhi University. Took two years to get respectable enough score at CAT to reach MDI Gurgaon and now would preach that there is no point in pursuing formal education in India.

His other posts on reservation and education system in India are here, here, here, here and here.

Quote on Indian Consumers

The average Indian consumer is growing. The urban world is driven by aspiration, quality and value in that order, while the rural world is driven by the same factors in a different order – value, aspiration and quality. It’s funny they want the same things in different ways.

Shivkumar is chief executive officer, Nokia

Taken from AgencyFaqs.com

I’ve got a security mindset

Wired has this interesting article today on a new course as University of Washington on thinking like a security personnel.

Reading the article and the course blog, I realized why I always had destructive tendencies. I have always wanted to find a way to pilferage things off the markets, way to steal that large gaming console out of that building, why I always want to look at the about page and login page of a website, and other ways a person can break a system.

Does that mean I have what it takes to be a security professional? No. Does that mean I am a negative person with destructive energies? Certainly No. It means that I am someone who is programmed to think like a security professional and I can use it in other interesting ways.

What could be other interesting ways?
1. Launch a business where you consult people. Consulting is a keyword for all MBAs. All MBAs aspire to be consultants some day irrespective of their level of expertise.

2. Identify a vulnerability and create a business idea around it. Make it social, viral, more importantly feasible. Make money from it and retire.

3. Talk to other people about it. Educate them about a different way to look at things.

What next?
Talk to Prof. Yoshi and see if this course can be taken online.

Are there anymore people who think like that and would want to connect? What could be other ways to use this knack rather than feeling sorry about it?

P.S.: One of my all time favorite fictitious people is Jack Bauer. And more I see 24, more I can relate to way Jack thinks. Or may be every can relate to him and thats why 24 was such a big hit…?

Originally posted on Thoughts @ Work

1v1: Excellence vs Mediocrity

Third in series after Popular vs Pertinent, Expert vs Employee.

Excellence vs Mediocrity

You can either pursue excellence or remain a mediocre.

A mediocre by definition is someone engaging in an act where objective is to finish the task rather than to complete it with best of abilities. Often, shortcuts are used and outcomes are ordinary. Borrowed wisdom is put to work and original thought process takes a back seat.

Excellence is where the objective is to compete with oneself. Idea is to create something out of the world even though the objective is well defined. Excellence could be in way you work, in way you opine of things or even the way you execute. People who pursue excellence sleep easy and tight.

Mediocrity vs Excellence in one line: The pursuit of excellence creates original thoughts that a mediocre person would put to use.

Both these are more about an attitude rather than expertise or availability of resources. And once you start the pursuit of excellence, its very easy to fall in the trap and move back to mediocrity. By definition, most of the human population falls in the mediocre category and funny thing is that they dont even realize it.

You can pursue only one at a time. You could be mediocre or you could be excellent. What are you?

Originally posted at Thoughts @ Work