domination mar 2014

VOLUME– IV ISSUE- 03

MA

RC

H 2

01

4 NEWSLETTER FROM DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Editorial ………………………………………………………

02 | DOMINATION, MARCH 2014 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Dear Readers,

With the onset of spring and a

new financial year around the

corner, this issue of DoMina-

tion is all about past learning

and new beginnings. Cover sto-

ry of the month is an in-depth

discussion of corporate govern-

ance, its need and challenges

ahead of Board of Directors by

Mr. Abhilash Choudhary.

Today organizations are

streamlining sales and mar-

keting by replacing high-touch,

repetitive manual processes

with automated solutions and

Ms. Apurva and Ms. Shifia have

wonderfully covered the topic

under perspective story. A gen-

eral election will be held in nine

phases, the longest election in

the country's history, from 7

April to 12 May 2014 to consti-

tute the 16th Lok Sabha in In-

dia. Ms. Monica Singh has ana-

lyzed its effect on Sensex and

Indian Economy.

DoMination is never short of

the fun quotient. This edition

features the next round of quiz

for them who love brain

twisting powered by “Buzzing

Crowd” – Quizzing club of

DoMS and a thought provoking

poem by Ms. Archana Singh.

Your thoughts and feedback

are always welcomed and ap-

preciated. Feel free to write to

us for any input. Stepping into

the spring with a new zest, we

hope to deliver to you a fresh

start with this new edition of

Domination!!

- Regards

Team DoMination

………………………………………………………

Contents

Faculty Adviser

Dr. R.L. Dhar

Team DoMination

Apurva Sood

Gaurav Mittal

Mehul Lala

Sudeshna Naskar

Vignesh B

Designing Team

Ashish Kumar Jaiswal

Dhruv Kadian

Rakesh Ranjan Kumar

Roorkee- 247 667, India Tel: +91-1332-285014, 285617

Fax: +91-1332-285565

Email: [email protected] Website: www.iitr.ac.in/departments/DM/Pages/Index.html For private circulation only

DEPARTMENT OF MANAGEMENT STUDIES INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

04

07

10

Qutopia

16

DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

16

03 | DOMINATION, MARCH 2014

13

09

15

DoMS da Evince Success Story

“Corporate Governance: The Role of Independent Directors”

Marketing Automation Chlorophyll

Sensex ahead of elections

mailto:[email protected]?subject=Feedback

http://www.iitr.ac.in/Departments/DM/Pages/Index.html


Corporate Governance is the frame-

work of rules and practices by which

a board of directors ensures account-

ability, fairness, and transparency in

a company's relationship with all its

stakeholders which constitutes of

financiers, customers, management,

employees, government and the

community. The board of directors is

typically central to corporate govern-

ance. Corporate governance is based

on principles such as conducting the

business with all integrity and fair-

ness, being transparent with regard

to all transactions, making all the

necessary disclosures and decisions,

complying with all the laws of the

land, accountability and responsibil-

ity towards the stakeholders and

commitment to conducting business

in an ethical manner. There has to be

distinction between what are per-

sonal and corporate funds while

managing a company, particularly in

case of the family owned corpora-

tions in Asian countries.

Broad of Directors Consists of:

1. Executive Directors (EDs)

2. Non-Executive Director’s (NEDs)

3. Independent Directors (IDs)

Need for Corporate Governance

With increased global com-

petitiveness, the growing market is

faced with the challenge of attracting

and retaining investment in order to

participate more fully in the global

economy and address other con-

cerns. Poor corporate governance

weakens a company’s potential and

at worst can pave the way for finan-

cial difficulties and even fraud. If

companies are well governed, they

will usually outperform other compa-

nies in long term and will be able to

attract investors whose support can

help to finance further growth.

Corporate governance helps in pro-

tecting the basic rights of its stake-

holders and provides stability to the

corporation for making decisions

which follow the various legal frame-

work, company laws and norms set

by regulatory bodies like MCA and

SEBI in India.

Corporate Governance Regulatory

Authorities

An effective regulatory and

legal framework is indispensable for

the proper and sustained growth of

the company. Over the years, the

issue of corporate governance with

many high profile case of poor gov-

ernance been exposed, it has re-

ceived a high level of attention

around the world. There are several

reports and recommendations of the


Cover Story

Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie


………………………………………………………

………………………………………………………International Committees/ Associa-

tions, etc. on the development of

appropriate framework for pro-

moting good corporate governance

standards, codes and practices to be

followed globally. In India, the Minis-

try of Corporate Affairs and Security

and Exchange Board of India imple-

ment these frame works. Recently

SEBI has come out with clause 49

along with existing Companies Act

2013.

Around the world some principles

have been introduced. These Princi-

ples of Corporate Governance focus

on publicly traded companies and

are intended to assist governments

in improving the legal, institutional

and regulatory framework that un-

derpins corporate governance. They

also provide practical guidance and

suggestions for stock exchanges, in-

vestors, corporations, and other par-

ties that have a role in the process of

developing good corporate govern-

ance. Corporate governance ar-

rangements and institutions vary

from one country to another, and

experience in both developed and

emerging economies has shown that

there is no single framework that is

appropriate for all markets. So the

Principles are not prescriptive or

binding, but rather take the form of

recommendations that each country

can respond to as best fits its own

traditions and market conditions.

Relevance of Independence of a Di-

rector in Corporate Governance

Independence of a Director is

defined as a person who has no di-

rect or indirect material relationship

with the Company, its subsidiaries, or

its auditor, or as a partner, officer or

significant shareholder of an entity

that has a material relationship with

the Company.

The big change in recent decades has

been the mandatory appointment of

independent directors (IDs), but

there is very little power given in

hands of these IDs by the law and

top management of companies

which makes their role very limited

and ineffective. Independent direc-

tors are expected to act inde-

pendently of management thus

should be expected to ask tough

questions, take tough decisions, in-

cluding the removal of the CEO

where necessary. In practice, very

little of this happens, because the

independent directors are beholden

to management for their appoint-

ment. If corporate governance is still

unsatisfactory, it is because the

mechanism and appointment of in-

dependent directors is not effective

enough.

The clause 49 is introduced by SEBI

ensures companies have set of inde-

pendent directors on board. The IDs

now have a limit of only two 5 years

tenures at a company with a 3 year

cooling off period and a cap of maxi-

mum 7 public companies at a given

time. The board should be chaired by

an independent director.

Issues and Challenges for Independ-

ent Directors in Corporate Govern-

ance

The regulatory environment

in India around corporate govern-

ance is changing rapidly and those

entrusted with governance i.e. the

Board of Directors and the Audit

Committee are being made responsi-

ble for the prevention and detection

of fraud. The current legal frame-

work does not differentiate be-

tween Independent directors

(IDs) and executive directors (EDs) as

it fails to distinguish between their

liabilities. The real question is, since

independent directors only play a

supervisory role, should they be pe-

nalized only in the event of a discrep-

ancy that directly relates to their re-

sponsibilities?

The role of IDs in fraud prevention

and detection has come under the

direct scanner of regulators, mem-

bers and other stakeholders due to

the recent exposure of high-profile

instances of fraud in India and

around the world. The IDs can play

the crucial role of bringing objectivity

to the decisions made by the board

of directors by playing a supervisory

role.

Importance of Corporate Govern-

ance

The big scandals of poor gov-

ernance of Enron, WorldCom,

Satyam, BP all are signs of emergen-

cy and should ring alarm for the cor-

porates to think how they handle

and govern themselves. Questions

are raised around the world and it

have become very important for the





………………………………………………………corporations to understand the most

basic reason of their existence.

Today the corporations believe that

their main purpose is to maximise

shareholders wealth, shareholders

are the ultimate owners of the cor-

poration and that ultimately they are

to exercise their control if the board

and management is not able to do

what they are ought to do, then they

have right to remove them. The

problem particularly with public

listed companies is that they want to

raise the share prices not in the long

run but rather in very short period.

This ideology allures the manage-

ments to cut security corners(like in

BP) and adopt unethical means to

enhance their stock performance.

Future prospects and developments

in corporate governance

India has become one of the

fastest emerging nations to have

aligned itself with the international

trends in Corporate Governance. As a

result, Indian companies have in-

creasingly been able to access newer

and larger markets around the world;

as well as able to acquire more busi-

nesses. The response of the Govern-

ment and regulators have also been

admirably quick to meet the chal-

lenges of corporate delinquency. But,

as the global environment is chang-

ing continuously, there is a greater

need of adopting and sustaining

good corporate governance practices

for value creation and building cor-

porations of the future.

It is true that the 'corporate

governance' has no unique structure

or design and is largely considered

ambiguous. There is still lack of

awareness about its various issues,

like, quality and frequency of finan-

cial and managerial disclosure, com-

pliance with the code of best prac-

tice, roles and responsibilities of

Board of Directories, shareholders

rights, etc. There have been many

instances of failure and scams in the

corporate sector, like collusion be-

tween companies and their ac-

counting firms, presence of weak or

ineffective internal audits, lack of

required skills by managers, lack of

proper disclosures, non-compliance

with standards, etc. As a result, both

management and auditors have

come under greater scrutiny.

It would not be sufficient to

form corporate governance frame-

work alone and take it as the solu-

tion to stop all the wrong doings

practiced by the companies, it needs

to be ensured in occurrence of any

wrong doings found there is proper

judicial framework present to punish

the convicts.

However, inapt application of corpo-

rate governance requirements can

adversely affect the relationship

amongst participants of the govern-

ance system. Institutional investors

are increasingly demanding a deci-

sive role in corporate governance.

Individual shareholders, who usually

do not exercise governance rights,

are highly concerned about getting

fair treatment from controlling

shareholders and management.

Creditors, especially banks, play a

key role in governance systems, and

serve as external monitors over cor-

porate performance. Employees and

other stakeholders also play an im-

portant role in contributing to the

long term success and performance

of the corporation. Thus, it is neces-

sary to apply governance practices in

a right manner for better growth of a

company.





By-

Mr. Abhilash Choudhary

DoMS, IIT Roorkee(2013-2015)

[email protected]

mailto:[email protected]

………………………………………………………


Marketing Automation is a tech-

nique, which uses various software

platforms and tools to automate the

tedious marketing activities. It pro-

vides automated solutions for repeti-

tive, manual processes and removes

the scope of human error involved in

sales and marketing activities.

Marketing Automation Software is

used for lead generation, segmenta-

tion, converting prospective custom-

ers to actual customers and in retain-

ing customers by building strong and

long-lasting relationships. It also

plays a key role in cross-sell, up-sell

and Marketing ROI measurement.

Key Components in Marketing Auto-

mation

Database: Before starting the

automation process, one needs a

comprehensive marketing database,

which includes the details of all the

customers, the customer behavior

and the interactions with them. This

helps in choosing the target segment

and customizing the message for

each customer.

Relationship Marketing Engine: This

domain creates and automates the

marketing processes and conversa-

tions across various channels.

Analytics Engine: After build-

ing an effective database and an en-

vironment for the management of

the various processes comes the ana-

lytics engine which tests, measures

and optimizes marketing ROI. It also

helps in the evaluation and improve-

ment of the marketing process.

Approach to Marketing

Automation

Marketing Automation is a combina-

tion of a number of platforms chiefly

Social Media Marketing, Email Mar-

keting, Phone Campaigns, CRM Inte-

gration, Campaign Management and

Analytics.

Users of Marketing Automation

Since Marketing Automation is cus-

tomer oriented and helps in reten-

tion of customers by building mean-

ingful relationships, the industries

which use this range from B2B

(Business to Business), such as soft-

ware, business services, manufactur-

ing etc., to B2C such as media, enter-

tainment, healthcare etc. Even small

and mid-sized businesses are widely

adopting marketing automation to

automate their marketing processes.

Due to increasing competi-

tion, fluctuating market conditions

07| DOMINATION, MARCH 2014

Perspective


Marketing Automation

Marketing Automation ………………………………………………………and pressure to increase the reve-

nue, more and more B2B marketers

are opting for automation of their

marketing process to manage their

complex ecosystem.

How does it help in the growth of a

business?

Besides increasing market efficiency

and improving ROI, marketing auto-

mation helps in the growth a busi-

ness by performing following tasks:

Management of Marketing Cam-

paigns by maintaining the data-

base, providing an environment

for creation and management;

and an environment to analyze,

evaluate and improve the cur-

rent marketing campaign.

Generation of quality leads

Converting leads to customers

Aligning sales and marketing

goals

Pitfalls of Marketing Automation

For marketing automation to work

properly it must be in conjunction

with the marketing strategy. Without

a comprehensive plan it can lead to

the following pitfalls:

Sending emails to customers

forms an integral part of Mar-

keting automation technique and

if not utilized properly it can

often be perceived as spam.

It requires a constant updating of

the leads and customer data-

base. If the organization is una-

ble to generate new leads and

expand its database and is in-

stead just trying to convert leads

into customers, it is unable to

acquire the unexplored market

share.

Confinement to email as the only

channel for marketing campaigns

Keys to successful Marketing Auto-

mation

Marketing Automation minimizes the

human element in mundane tasks,

but it does not generate leads or do

marketing for a firm. It can only help

in the management and scaling of

the efforts.

The success of the automa-

tion process depends upon a firm’s

strategy, its people and the content

on which the company works.

Though one gets a decent

ROI from marketing automation, the

returns one reaps depends upon the

incremental work put into the strate-

gy and the automation process.

DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE 08 | DOMINATION, MARCH 2014


By-

Ms. Apurva Sood


[email protected]

Ms. Shifia Mittal



Chlorophyll ………………………………………………………Its wise to learn, its GOD like to create

DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE 09 | DOMINATION, MARCH2014


She lit a flame

She wanted to live,

Just this merciless killing

Can never end our grief.

But what had happened cannot be undone,

Brutally assaulting someone is just not fun.

You cannot force a girl for your own hunger for SEX,

What all it requires is a change in our mindsets.

I fear going out, not just in dark but in the day too,

But who cares, this government will let it go in a day or two.

She was daddy’s lil girl,

Wanted to conquer the world.

But they chopped off her wings,

In a way one cannot even think.

For them, it was just a fun game,

But now this hue and cry is all in vain,

The whole humanity is in shame.

She lit a flame,

She wanted to live,

To never die again

By-

Ms. Archana Singh


[email protected]


Qutopia ………………………………………………………

It’s Exquizite, Kills your Quriosity and adds to your Quizdom. Need we say more? ‘Qutopia’ – A Utopia of the best Biz Quiz Tidbits to wreck your brains! Rush in your answers to [email protected] before 21st April 2014. The winner will have their names published in the next issue. Also, person getting the highest score in the current quarter will get a gift voucher. Answers in the next issue of DoMination.

Powered by Buzzing Crowd - Quizzing club of DoMS, IIT Roorkee


1. Name the BitCoin exchange that declared bankruptcy in February 2014.

2. The power of knowledge’ is the tag line of which newspaper .

3. Which was the first Indian bank to open its branches outside India?

4. By what name is Phiroze Jeejebhoy Towers better known as?

5. Name the Brand with the tagline “Handcrafted in Chennai”.


Section A (1 Point for each correct answer)


Qutopia



Section B (2 Point for each correct answer)

………………………………………………………

Q1. What is the name of the mascot on the

bonnet of a Rolls Royce?

Q3. Identify the company

Q4. Identify the watchdog organization.

Q5. Identify the group.

Q2. Identify the celebrity.

Qutopia ………………………………………………………

Section A 1. TATA

2. Karbonn

3. Bihar

4. National

5. Youngistaan

6. Infosys

Winner of February edition

Agam Gupta DoMS, IIT Roorkee (2013-15)

12 | DOMINATION, MARCH 2014 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE


Answers for February edition

SECTION B

1. Sochi Olympics picture is in longer side of the note,

unlike the usual notes which have picture in the land-

scape

2. Micromax

3. Ranbaxy Laboratories and Jaiprakash Associates are

moved out of Nifty. Tech Mahindra and United Spirits

will replace them.

4. Tata Tea

DoMS-da-Evince

Tulima Ranjan is a 2010 batch passout and currently work-

ing as Senior Business Analyst

in Delta Airlines.

1) Please let us know about your

journey prior to joining IIT Roor-

kee.

An engineering degree from

VTU in information technology and two

years of Data-Warehousing experience

with WIPRO Technology – to sum it up,

an average MBA aspirant.

I worked as project engineer

(that’s the fancy title you get as a fresh-

er) on an ETL tool called Ab-Initio in the

UNIX environment. The backend was

mostly Teradata. Interacting with the

machine 8 out of the 10 hours was ex-

tremely boring. So MBA seemed like

the most logical pit-stop to change ca-

reer path.

2) What are your roles and responsi-

bilities at Delta Airlines?

Senior SOA Business Analyst is

a two part role – in projects and in SOA

governance team.

In any project I am Responsible for Cli-

ent Engagement throughout the lifecy-

cle of the Project. I conduct JAD ses-

sions and create various artefacts (use

cases, service contract, traceability ma-

trix etc.) for requirements assimilated

from different channels. In delta we

have various channels reservations,

delta.com, kiosk, ACS etc. who are the

clients to the SOA team. Within the

SOA team I support developers and QA

throughout the SDLC lifecycle. This is a

typical business analyst role most of

MBA graduate get offered in the IT

space.

SOA governance team ensures that SOA

policies, procedures and templates are

followed throughout the SOA team and

that these are updated as required.

3) What is your views on the current

situation of airlines industry in

USA, particularly in the current

recession?

The Airline industry in the USA

hit major snag after 9/11. People had a

fear of flying and avoided air travel.

This has resulted in many airlines filing

for bankruptcy and consolidation

(M&A) of major carriers - Delta-

Northwest, AirTran-Southwest, Conti-

nental-United over the past decade.

And the latest being US Airways and

American Airlines merger. With this

consolidation of competition and peo-

ple getting their faith back in flying, the

airline industry overall has seen profita-

ble growth and has come out of the

recession. Airlines are now aligned to-

wards discovering new ingenious ways

for cost cutting. For example delta has

acquired a refinery to produce jet fuel.

Personally I do feel that this trend of

diminishing number of competitors

increases the chances of market manip-

ulation. We will have to wait and watch

how this plays out.

4) Have you noticed any change in

the customer behaviour in recent

times?

The customer now wants their

travel to be priced to the minimum –

get me from A to B – no frills. And then

depending on their needs they add on

things like meals, wifi, extra leg room,

etc - even a checked in bag. So the

amenities which earlier were expected

to be provided, have to be paid for

now. And the customer feels they are

not paying for something they don’t

want or don’t use while travelling. From

airline perspective this broadens the

number of price-points for the same

seat. So they can cater to the demand

of a broader market and expand their

customer base.

Also, the whole loyalty pro-

gram has caught on big-time in every

industry. This is even more so in air

travel because of two things. Loyalty

programs get you different levels of

membership which make you eligible

for freebees such as free upgrades, free

first checked in bag, priority boarding,

free Wi-Fi, access to lounge etc. This

inclines customers to align themselves

with one airline and then stick to it, so

that they can reach the highest medal-

lion with that airline. Also you can earn

miles with your daily credit card pur-

chases and use it towards air-travel if

you are in the airline loyalty program.

DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE 13 | DOMINATION, FEBRUARY 2014


………………………………………………………

http://delta.com/

DoMS-da-Evince ………………………………………………………

5) Recently there has been a lot of

talk about analytics. How do you

see the function of analytics in

your job?

Analytics is not a part of my

job. I perform more of business process

analysis.

Having said that I would like to

mention Analytics is one of the major

contributors to deltas phenomenal

quarterly results. Analytics has tremen-

dously improved the accuracy with

which delta can predict on which route

how much a customer is willing to pay

at most in any given time period. This

allows delta to determine the correct

price point on which they should offer a

fare such that the aircraft flies full ca-

pacity and generates maximum reve-

nue. Also By analysing passenger traffic

on routes it has helped in determining

which type of aircraft to fly on which

route for maximum profitability. During

an unforeseen event such as volcanic

eruptions, it was analytics which helped

to re-route passenger traffic in real time

to minimize the negative customer

feedback.

6) What is the most challenging role

in your career so far?

After my MBA, I came to the

US. When I finally started working it

had been more three years since I left

WIPRO, and my technical skills were

rather rusty. I joined WIPRO (onsite) as

technical lead for at Capital-One. I was

overseeing the transition of their entire

Statistical Infrastructures and Tools

(SIT) Platform from Infosys. Due to re-

source constraints, it was just me onsite

and rest of the team was in Bangalore. I

used to get KT’s in mornings and then I

had midnight KTs with offshore. I was

handling production failures on week-

ends. Managing client expectation with

seamless transfer of application devel-

opment, code deployment, defect fixes

within tight deadlines and in an agile

environment has to be the most chal-

lenging role so far. My sincere advice to

anyone planning to come here on H4

(spouse visa) – its very difficult to con-

vert h4 to h1. The only jobs that are

available are in pure IT development or

QA. So please plan accordingly.

7) Would you like to share an inter-

esting incident with us?

Instead of sharing something

from work life, I would like to walk

down the memory lane with one of the

most unforgettable incident during

MBA.

In our first year half of our

batch went white water rafting. We

were 27 of us in 3 rafts divided in a very

interesting fashion. The nerds (all of

them – except one had glasses) were in

the first raft, the happy-go-lucky back-

benchers (mostly freshers) were in the

second and the heavyweights (literally)

were in the third.

After sometime, folks in raft1

turned back and they see blue helmet

floating across the Class3 rapid they

had just crossed. It so happened, that

Raft2 had done two flips right in the

middle of the rapid and the only person

who was left on the raft was a spunky

lady. Slowly she helped pull the instruc-

tor and few others onto the raft. But

the raft had floated downstream faster

than those in water could keep up.

Luckily, the few remaining hitch hiked

with the already overcapacity raft3. It is

still a mystery how they managed to

stay afloat!!!

Thank god no one was hurt. But some

of our friends were in water a long

time; one even lost his helmet while in

water. The other was under the raft2

for around 200mtr stretch and that was

super scary. Those few minutes made

them appreciate life even more. Today

we can look back and laugh over it, but

it was a very dangerous situation to be

in.

So when folks go rafting, which you

should, Be Safe, Be by the book and

make sure you are not in the last raft!!!

8) Any message for readers, especial-

ly for the current batch of DoMS?

While at DOMS - some of us took trips

at every given opportunity – Rishikesh,

Dharamshala, Vaishnodevi, Chandigarh

– anything that we could fit into the 2-5

days breaks we got. Some of us partici-

pated and won in lot of B School

events. Some of us organized events

such the IIT fest, Spornado. And some

made use of the amazing sports facili-

ties we have. In short, apart from stud-

ies we all did something that we thor-

oughly enjoyed.

In between your busy schedule – make

efforts to find time to do the thing that

you enjoy. Because when you look back

you might now remember the hours

spent in office, classes or libraries, but

you will always remember the trips, the

awards and the pool table!!!



………………………………………………………

Success Story

A diamond-studded watch, a

private island, a business jet, a

chauffer-driven super luxurious car,

bespoke anything—luxury is limited

only by the imagination. And by the

depths of your pocket. Ajay Bijli, 46,

an entrepreneur who has made a

fortune for himself building PVR Cin-

emas into India’s largest chain of

multiplexes (with a turnover of

around Rs 1,100 crore) has no such

constraints. But, he says, “I am just

very reluctant to talk about it be-

cause there is no end to luxury.”

It’s not that he doesn’t live

the good life; he merely isn’t in a

mad pursuit of the best things that

money can buy. There is a Bentley to

go to work in, first-class international

travel, made-to-measure clothes

stitched in the UK or Singapore, se-

cluded destinations for family vaca-

tions and a house that’s been under

construction for the past 12 years.

“The fact that the choices I have

made are priced higher than other

things is incidental. It is not the driv-

ing factor for me,” he says. This is not

a show for the world to see and

judge.

Many of Bijli’s choices can be

traced back to his growing-up years

and to the phase after his father,

Kishan Mohan Bijli, passed away—

that was when he had to find his feet

in the world.

It would be fair to say that

Ajay Bijli had a privileged childhood.

As a kid, he was pampered—he was

used to being driven in good cars and

travelling first class on holidays. “My

dad was fond of Mercedes for the

longest time and he was a collector,

to the extent [that he would buy]

whatever would come on the State

Trading Corporation or what was

possible to import—and he had a

good collection. He influenced me as

far as travel and cars are concerned.

He would always say that if you are

travelling, then travel well. That has

stayed with me,” says Bijli.

His father, who ran a truck-

ing company called Amritsar

Transport, passed away in 1992. Ajay

also inherited a cinema hall called

Priya in New Delhi’s Vasant Vihar.

The theatre business excited him,

especially the potential of multiplex-

es in a country full of single screen

theaters. Building Priya Village Road-

show (PVR) became priority. It was a

tough period and the idea of having a

good time took a back seat. “After

that I became very conservative. Ac-

tually the need of the hour was to

run the business and take care of the

inheritance. At that time people used

to wonder why I never bought any

cars—whenever something would

get spoiled, only then it would be

replaced,” says Bijli. It was only after

2005, when PVR Cinemas had

achieved a certain scale that he

found time for himself again. That’s

when the cars and the holidays reap-

peared.



Ajay Bijli, 46, an entrepreneur who has made a for tune for himself building PVR Cinemas into India’s largest chain of multiplexes

………………………………………………………

Regardez I’economie

The fever of elections is pick-

ing up in India, and so are the stock

market figures. Unlike the pre-

election situation in 2004, when

Sensex was on a decline due to the

imminent loss of NDA, the stock mar-

kets are soaring. Since the trend of

coalition governments started in the

mid 1990’s, the pre-election season

generally sees a decline in the mar-

kets due to uncertainty. But this time

around, the Sensex breaching 22,500

mark and the rupee strengthening

against dollar have a different story

to tell. With the American brokerage

firm Goldman Sachs on Tuesday up-

grading India to “overweight” from

“marketweight” after the domestic

markets scaled lifetime highs and

Experts forecasting Sensex to touch

24,000 mark before the elections,

the economic outlook of India is

looking positive. Argument ensues

between the two political bastions

trying to claim the rewards, with the

BJP arguing that this is a result of the

public faith in their prime ministerial

candidate, Narendra Modi, while

Congress attributes it to the sound

economic policies introduced by

their party during their regime. Pin-

pointing a single factor behind this

market high would not be correct.

There are more than one factors con-

tributing towards the upward market

trend

Modi effect

The present UPA govern-

ment is riddled with corruption, bad

governance, scams and lack of lead-

ership and are highly unlikely to

come to power in the general elec-

tions this year. The anti-incumbency

against UPA government and the

projected image of Modi as a devel-

opment driven leader may benefit

the BJP government. The investors

believe that BJP’s prime ministerial

candidate will implement the Gujarat

development model on a national

level hence increasing their confi-

dence in the economy. Modi is be-

lieved to be a pro-business and pro-

industry leader and has displayed

commendable performance in the

economic front. This possibility

seems to be instilling confidence in

the foreign investors in Indian mar-

kets .Although Modi has been unable



Sensex ahead of elections

………………………………………………………

Sensex ahead of elections to come up with a sound agenda to

improve the economic scenario of

India except for a broad economic

vision. Launching bullet trains, laying

optical fiber networks and interlink-

ing rivers are what the Gujarat Chief

Minister is proposing when he comes

to power. The supporters praise

these promises as visionary while the

critics call them empty promises that

are practically unattainable.

While whether Modi comes to power

or not remains to be seen, one can

expect a stable government at the

center focused towards development

on the economic front. The disen-

chantment of the Indian voter man-

dates better governance and eco-

nomic reforms.

FII inflow

A number of studies in the

past have observed that the move-

ment of Sensex is directly related to

the investments by FIIs. It is also ob-

served that FIIs have a considerable

influence on market sentiments as

other market participants consider

FIIs as infallible in market assess-

ment. Among the major emerging

economies, marred with political

mismanagement, high fiscal and cur-

rent account deficit and high infla-

tion in the previous year, India still

managed a growth of around 5%

thus faring better than other emerg-

ing economies. With the FIIs pump-

ing over $1 billion in Indian stocks

since the beginning of 2014,the mar-

kets are infused with confidence and

likely to continue this way.

Indian Economic Fundamentals

With the Consumer Price

Index easing to 4.7%, the current

account deficit dropping to around

$35 billion from $87.8 billion in 2012-

13,rupee strengthening to below 60

against dollar, and Sensex breaching

22,500 mark, the fundamentals of

Indian economy seem to be growing

stronger thus reviving faith in the

investors.

QE tapering

The news of Quantitative

Easing tapering in the month of May

last year led to the sharp decline in

the value of rupee against dollar and

also saw the plunging to record lows.

Every currency saw a decline in value

due to the announcement of QE ta-

pering. FIIs pulled out large chunks

of money from the Indian markets

dragging down Sensex and hitting the

rupee hard. But recent RBI moves are

expected to provide a cushion to In-

dian Rupee. The recent cuts in QE did

not see the market declining, on the

contrary Sensex has been on a high.

This is because the announcement of

QE tapering came as a shock in May

while now the markets are better

prepared to handle the tapering.

The result of general elec-

tions will be announced in May and if

experts are to be believed, India will

see a stable coalition at the center

which will spur the economic growth

further which is most probably going

to be sustainable in the long run.



………………………………………………………

By-

Ms. Monica Singh


[email protected]


Department of Management Studies, IIT Roorkee

Roorkee - 247667, INDIA

Comment/Feedback Mail to : - [email protected]

Contacts: Mehul Lala (+91-9927081098 )

Vignesh B (+91-9791480895)

Follow us :-

Blog Page- http://domsiitroorkee.blogspot.com/

Twitter Page- http://twitter.com/#!/doms_iitroorkee

Facebook Page- https://www.facebook.com/pages/DoMS-IIT-Roorkee/156383884413349

mailto:[email protected]?subject=Feedback

http://domsiitroorkee.blogspot.com/

http://twitter.com/#!/doms_iitroorkee

https://www.facebook.com/pages/DoMS-IIT-Roorkee/156383884413349

domination mar 2014

Documents

board of directors

broad of directors

elections corporate

corporate funds

new edition of domination

executive directors

iit roorkee editorial

nonexecutive directors