Friday, August 31, 2012

PVR CINEMAS: STRATEGY

He joined the company in 2001 when it was poised for the typical big leap. Today, PVR Cinemas is one of the largest cinema chains in India, yet not the largest. Nitin Sood, CFO, PVR Cinemas tells B&E, what it took to reach here and what it would be like ten years later by Amir Moin

B&E: How has the exhibition business evolved in the past ten years or so?
NS: The single most important and the most revolutionary evolution has been the introduction of the multiplex. About 8-10 years ago, there were in general only single screen cinemas. If you look globally, 75% of all cinemas are multiplexes; in India, the number is completely opposite. We have only 10-15% multiplexes compared to 85-90% single screen cinemas. So the industry is evolving in such a manner that people are gradually realising that single screen is a dead model to operate with. Multiplex offers a variety of choice therefore further evolution that takes place will also be the ‘multiplex-isation’ of single screen cinemas.

B&E: There are issues in every industry that hinder growth. What are the challenges for your industry?
NS: I think the biggest challenge has been the regulatory issue. The industry is being plagued by different state tax laws. Different state governments have a different take on how they want to promote cinema and entertainment. That I think is the biggest challenge. The recent amendments that have been introduced on transfer of copyrights is also another challenge. According to this amendment, service tax would be levied on transfer of copyrights. This already comes under the purview of state level VAT laws. Now, the central government is saying that state governments will levy VAT and service tax on the same transaction. However, if the GST gets implemented, we would be able to work on a much more uniform structure. That, I think is the biggest change that this industry should foresee.

B&E: Do you think global companies would be setting base in India?
NS: That would be happening but the size and scale of the Indian movie exhibition industry is too small for global giants right now.

B&E: Does this business have potential to give you a Fortune 500 status?
NS: It definitely has the potential, but the size and scale to reach a Fortune 500 status will take a lot of time. From that perspective, India and exhibition alone would not make a Fortune 500 recipe. It is a very capital intensive business. 


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Thursday, August 30, 2012

Finally, you may forget about it!

After 32 years, the Centre reiterates its irrevocable right over enemies

This is as unfathomable and confounding as it gets, even by Indian standards of justice. Recently the Centre passed the long awaited (32 years long to be precise!) “enemy property bill”, which is expected to close all possible hue and cry over the issue. For the uninitiated, “enemy property” means the property left by those who left for Pakistan after partition. After the 1965 Indo-Pak war, both the countries promulgated the Enemy Property Act in 1968 and seized properties in the forms of lands, shares, bonds etc. as a matter of right. Pakistan seized assets worth `109 crore of Indians who left Pakistan and India seized assets worth `70.99 crore of those who migrated to Pakistan. Since then, Indian relatives of those who migrated have been claiming the land their relatives left behind.

The debate took an interesting turn when President Pratibha Patil passed an ordinance on July 2, 2010 against Amir Mohamed Khan, Raja of Mehmoodabad, preventing him from possessing properties worth `30,000 crore, which his parents had left when they migrated to Pakistan. After 32 years of courtroom drama, the SC gave him the right of possession. Pratibha Patil’s ordinance came all of sudden when his success led to agitation among several others to claim 20,000 other similar properties. The Centre had been quiet for fear of alienating the Muslim vote-bank but after the growing agitation, the Centre was forced to pass the bill to extend the President’s ordinance with a strict clause – once a property is labelled as “enemy property,” it cannot be claimed by relatives. Even the court cannot transfer ownership rights of such property.


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Wednesday, August 29, 2012

What God made, and men ravished

Srinagar is where the shikaras and houseboats wait for the tourists to return...

The city of Srinagar gets it name from two Sanskrit words, Sri and Nagar, meaning the city of abundance and wealth. Situated on the banks of river Jhelum, the valley’s perhaps greatest wealth is its natural beauty. The shikaras ply the waters of the Jhelum, which criss-crosses through the city, and eventually flows into the Wular Lake – the largest fresh-water lake in Asia. Several lakes add to the scenic beauty of Srinagar, with the Dal Lake perhaps being the most well known of them all. Once a favourite with the elite section of the Mughal society, Srinagar’s Mughal gardens still serve as reminders of their long-ago reign. Nine old bridges across the Jhelum connect the two parts of the city. At every turn poetic picture postcards come alive...

The city of Srinagar has a history that goes back to about 2000 years ago. The city was founded in the 3rd century BC and remained peaceful when it was ruled by the Mauryas and then by King Asoka, who brought Buddhism in the city until it fell to the brutal Huns in the 6th century. The Hindu and the Buddhist rule of Srinagar lasted until the 14th century, when the city came under the control of the Mughals and Akbar established his rule in Srinagar.

After the disintegration of the Mughal empire, the city came under the influence of Sikhs and remained one of the princely states during the British colonisation. Gulab Singh was appointed the independent ruler until it became a part of independent India in 1947. Political unrest in the 80s and 90s drove the tourists away and left the houseboats empty, but the situation has improved in the last few years. It continues to be a high security zone with army scattered everywhere in the city. There are bunkers and checkpoints after every 200 meters (or less), and you can be stopped and frisked (or even roughed up) at the slightest suspicion. The locals seem to have accepted this as a way of everyday life. Tourists are advised to check the latest updates before setting forth for Srinagar.

Those who do reach the city, will find the lakes and gardens waiting to beguile them into a world unlike any other. A pyramidal hill, a thousand feet in height, stands by the side of the Dal Lake, supporting the ancient stone temple of Shankaracharya, the oldest shrine in Kashmir. The waters of the Dal reflect the willow and poplar trees lining its edges, as vividly-painted shikaras carry tourists from all parts of the world. Shikaras are a novel way of seeing Srinagar, and are perhaps the reason why Srinagar has earned the title of the Venice of the East. They ferry rides to and fro the banks of the lakes and the houseboats and floating gardens. The magnificent Mughal gardens compliment the startling beauty of the Dal Lake. However, out of about 500 gardens laid down by the Mughals in the 16th and 17th century, only a handful are still there today.


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Friday, August 24, 2012

FIVE YEARS OF RESEARCH, INTELLECT AND PASSION-DRIVEN BUSINESS JOURNALISM THAT HAS TRANSFORMED BUSINESS JOURNALISM... THE WAY IIPM TRANSFORMED MANAGEMENT EDUCATION IN INDIA! WATCH OUT FOR THE NEXT FIVE YEARS!!!

It's been absolutely wonderful a journey! What's most important is that I know that every line we carried in these five years, was one which we believed in it. There has been no compromise – with advertisers, with politicians, with policymakers, with businessmen. They have actually often hated us for our bold views, filed cases against us; and the best part has been that we have had competitors trying to harm us – and our parent institution – in all possible ways! It only shows that we made a huge impact. An impact that made competition fear us, policymakers and politicians uncomfortable, and businessmen careful. And I think that was the role that we wanted to have as a business and economy magazine. We stood not only for truth, but truth backed by intellect – our biggest differentiator. In the world of unintellectual journalism and journalists – and more so in the business sphere – we wanted to bring in analysis that would set benchmarks.

We wanted to be honest to the point that no businessman could say that any Business & Economy journalist was just a phone call away. And everyone knows that our magazine has never been a PR tool, or one where only foolish praises would be showered, issue after issue. And most importantly, we gave our readers in four crisp pages – yes, that has been the size of our cover/main stories – what other magazines failed to give in four times the number of pages! Trust me, any pathetic journalist can write a 16 page story by taking 30 quotes and placing them one after the other – with logic or sans logic. But when you have to write a story in four pages, you better be intelligent enough to know what the context is. And that happened purely because of the team of MBAs led by Sutanu and A. Sandeep in tandem. If Sutanu was the ideas man, A. Sandeep was the guy who saw to it that every line retained its sharpness and yet had subtle humour in it, which business magazines rarely get to see! And trust me, more often than not, I have found our half-page stories as wonderful as our cover stories. They have all been cover stories in their own right – that is the amount of knowledge that the team squeezed into each story!

We realise that we are still not The Economist – the magazine I personally respect the most – so we never dared to call any of our half page stories the cover story. But I know that many of them were worth being cover stories. So, for their endless hard work, intellect and sustained sincerity, thank you so much Sutanu and Sandeep. For keeping the intellectual flag flying through Scrutiny stories, thanks Prasoon; you and your team are brilliant! For the smart lifestyle section – which all business magazines started only after we started – many thanks to you Prashanto and your lovely team. Many many thanks to the super awesome design team under Satyajit, ably supported by Manish and others.

Of course, taking out a magazine requires a 'huge behind the scenes' production work and for that, Gurudas, thanks to you and your lovely team as well! Finally, I must must thank Abhimanyu for managing ad-sales, despite my endless strictures which always made his life difficult. What is most amazing with all the names I have taken so far, is that they have all been with us since day zero of Planman Media! That is the power of a team, without which an organisation is nothing. Thanks to everyone who has contributed with so much passion and heart, but has not been named here. Above all else, I must thank Dr. Malay Chaudhuri for giving us the vision and a great institution called IIPM.


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Wednesday, August 22, 2012

New pills for your technology ills

While its utility is still questionable, Apple’s iPad has unleashed a new, internecine battle on the tablet front, which will involve both device manufacturers and OS providers

Back in January 2010, when Steve Jobs had showcased the iPad for the first time and dubbed it to be a magical device, his critics had scoffed and mocked him. “After all, it’s just a giant iPhone,” was what most analysts had said. But now that the iPad has been around for about two months and managed to sell more than two million devices already (and that too mostly in the US as it was not available in other parts of the world before May 28, 2010), they could well consider enrolling for Jobs’ marketing lessons.

Some other technology giants could also add their names to the list. For the first time in the history of technology, we have a device that has become a runaway hit and yet the purpose of its existence is still unknown! Most people would agree that an Apple iPad will not replace their existing desktop or notebook or even probably a net book in terms of usability. No matter how much one may claim to love this device, typing on it is not as breezy as doing it with a physical keyboard. So, does that mean that the only usability it has is in consuming media? Even in that case, the absence of Flash (refer to the heated debate between Adobe and Apple) would hurt the web browsing as well as media consumption experience for many. However, unfettered by all these ‘minor details’, Apple lovers were ready to queue up several hours in advance to order this gadget without physically holding it. Well, in that sense, we agree with Jobs that iPad is magical, even if it is owing largely to the Apple aura. And now this magic has made people sit up and take notice of the emerging demand for a product like tablet computers.

Already basking in the success of Apple iPad and the third generation iPhone, Apple has become the most notable technology company overtaking Microsoft in market valuation. On May 26, on NASDAQ Stock Market trading, Apple’s market value stood at an astounding $222.1 billion, which was a notch higher than Microsoft’s $219.2 billion. This is said to be just a build up to a new crescendo that will be visible post the launch of the new iPhone, which has just been launched on June 7, 2010. The company will start preorders for the same from June 15. The competitors of Apple may have been feeling left out for now, but they are not in any way looking at making things easy for the Apple iPad. As already discussed, this gadget’s utility is still not known clearly but it has already forced some big names (and some not so big names) in the industry to go back to their drawing boards and attempt to bring out similar devices to offer in the market. And it looks like those will be the not-so-notable names that will be the first to jump into this market. The two Taiwanese majors – MSI and Asus have both showcased their Windows-based tablet computers and are expected to launch the same in the market shortly. However, it’s the entry of names like Sony, HP, Microsoft and not to forget Google that will add the spark in this tablet market.


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Tuesday, August 21, 2012

happiness for tomorrow

Innumerable marketers are selling ‘happiness for tomorrow’ but ‘love market’ offers memories of the past... 

I pass by my ex-lovers, I would definitely be courteous to stop by and talk. But, I don’t understand the relevance of giving out a day or going to the extent of making friends with people who have deliberately been made a thing of the past. I would rather focus on making the present relationship better,” says 28-year-old Jaikaran Oberoi, who has been through a series of flings as well as serious relationships.

The nature of love differs across cultures and as scholar William Jankowiak observed, “Romantic passion is a byproduct of an interplay between biology, self, and society”. In a study to learn about the differences in Love across Cultures (LAS), it was discovered that the ‘Chinese participants were more endorsing of yuan (fated and predestined love) and the Russians were less likely to require love as a basis for marriage. While the Japanese agreed less with certain romantic beliefs, the Americans were more endorsing of secure attachments.’

However, no culture except the Vietnamese seems to have made place for the lovers who due to various reasons cannot be with each other. Though, the openness in marital relationships to admire the ‘old flames’ is admirable here, assigning a full-fledged ‘love market’ to the cause only hints at the society’s rules and conditions to temper down love in the very first place!

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Tuesday, August 14, 2012

Still “good friends”

Will she, won’t she act with Ranbir? The rumour mills were set abuzz when Deepika Padukone was not seen in a soft drink commercial that featured Ranbir Kapoor and was a brand endorsed together by the duo when they were a couple. But Deepika has been vehemently denying such rumours and maintains that she shares a good equation with Ranbir and that there is no need to “read between the lines”! Let’s wait and watch when they finally get around to bettering the magic they had created in Bachna Ae Haseeno!


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Monday, August 13, 2012

Subhash Chandra, the media maverick, in an exclusive conversation with B&E

He came, he saw, he conquered ... Subhash Chandra, the media maverick, in an exclusive conversation with B&E, shares the eventful ups and downs that he faced during his journey to the top

B&E: Many second generation entrepreneurs do not appear as successful as their parents? Is it because of over expectations from them? Or is there any other reason? Your personal views on this ‘perception’...
SC: Yes, it happens due to over expectations at times. But, the phenomenon occurs mostly because of the fact that first generation entrepreneurs had no time to transfer the learning as they were generally too busy to build the business.

B&E: What is the most important thing that you advice your children?
SC: Actually two things. First, to always keep your promise, and second, get cheated but knowingly, or say know the people you deal with.

B&E: In your opinion, what is the biggest mistake of your life?
SC: The biggest mistake of my life was that I believed in the stock market and got carried away in 1999.

B&E: How has Subhash Chandra, the businessman, changed and evolved over all these years? Can you sight a few corporate incidents to help us better understand the same?
SC: As a businessman, I have definitely evolved over the years. Today my focus is not about only making money, but also to contribute to the society in a more meaningful manner.

B&E: In times of distress and business dilemmas what is it that keeps you going? Can you recall any such incident?
SC: Focus and determination to find the optimum solution for business dilemmas keeps me going. Vipassana (a meditation technique) has also helped me to remain calm and focused, thereby striking a right balance between work and personal life.

B&E: And what about ICL’s future?
SC: ICL is down, but not out!

Read more....

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