final welingkar
TRANSCRIPT
DANDEKAR TROPHY COMPETITION: 2008-2009
BOMBAY MANAGEMENT ASSOCIATION
by Abhinay Vishnoi
Gaurav ChoukaseyRajat Sahai
“Is the glass half full, or half empty?
It depends on whether you're pouring, or drinking.”
- Bill Cosby
Economic recession a caveat or opportunity for corrective pause
Attitude and point-of-view matters
Global business cycle – objectivity – challenging year ahead
Amidst problems lies the seed of opportunity
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Started as subprime crisis in USA in 2007
Jargons doing the round – securitized mortgages, CDO, CDS
Monster – credit crunch intensifies, housing bubble bursts
Victims – Lehman Brothers, WaMu, AIG, and many more
…wait for the sequel
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"We can't solve problems by using the same kind of thinking
we used when we created them."
- Albert Einstein
Recession affects world economies – India, China, Japan, UK, etc
Governments & central banks firefighting – stimulus packages
Slowdown evident & definite – challenges open new horizons
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Silver lining – 50% of India’s GDP – from this sector
Addressable opportunity – global BPO – BFSI, Telecom, Govt.
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Cement
Mining
Education
Agriculture
Tourism
Insurance esp. healthcare
IT and BPO
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Global-Indian scenario
Flagship company of Sesa Group
Major stakeholder - Vedanta Group
Largest exporter of iron ore
Turnover - Rs. 1800 crores
Other endeavors -- 280,000 TPY metallurgical coke plant
-- 250,000 TPY pig iron plant
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Cost effectiveness & no-layoffs
Self-consumption & multiple revenue sources
Self-sufficiency
Coke Production
Power Plant - 30MW
Pro-active strategy
Other cost cutting measures: River transport , etc
Green Mining Initiative
Corporate Social Responsibility
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Q3 Results
Net profit of Rs. 607.60 crores
Income from operations rose to Rs. 1,497.33 crores
Conclusions
• Innovative and flexible practices
• Well informed firm
• Objectivity
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Travel for recreation or leisure
2007: 903 million tourist arrivals, $856b in revenue
2008: Growth of just 2%
2009: Growth expected to drop by 5.3%
2010: Growth expected to drop by 0.2%
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Agra: 20-30% reduction in foreign tourist arrivals (FTA)
Goa: 20% decrease in FTA
Reduction in flights at Dabolim airport: 42 to 25
Kashmir: 32% reduction in FTA
10-15% occupancy in Gulmarg and Kashmir
Kerala: 35% decrease in FTA
35% reduction in occupancy of house boats
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The new business model – focus on domestic tourists
Packages & Promotion
4 important considerations:
Manage the costs
Keep the cash flowing
Focus on good customer service
Don’t stop marketing
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The forest is mysterious dark and deep
I have many promises to keep
And many miles to go before I sleep
And many miles to go before I sleep
- Robert Frost17
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