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PASSLINEPASSLINE Nov 30 - Dec 31, 2012 Nov 30 - Dec 31, 2012

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Suburban trains—a better option

GCDA Chairman N Venugopal’s line of think-ing (November issue) is contemporary, be-

cause what is needed for Kochi, and Kerala, is not the metro railway but a suburban rail as the people of Kerala suffer a lot because of its absence. A metro rail, if it comes into existence, even after much dust and fury, will not be an alternative for the commuting community who can only afford a cheap means of travel which a metro rail cannot provide.

The more the delay in its introduction, the more will be the cost of the project and the result will be exorbitant fare for the common travellers. Most of the passengers coming to Kochi are season ticket hold-ers who resort to the long-distance express trains holding tickets of Rs 8/Rs 9 causing disturbance to the reserved passengers. Of course, such a journey in a metro train will cost them dearly. So, the best al-ternative will be the suburban train between Thrissur and Kochi for the north sector and Kollam and Kochi for the south sector. Look at Chennai and Mumbai where the suburban electric trains are dime a dozen for the easy reach of people to their places of work.

As the GCDA Chairman is very earnest about completing the projects he has envisaged during his tenure let us hope that he will do his best in deliver-ing the suburban train service within the period.

Anitha, Pathanamthitta

Minister sceptic, people apprehensive

The recent remark by Defence Minister A K Antony that he is sceptical about recom-

mending any industry to Kerala is an eye-opener for the politicians and trade unions who try to torpedo the well-run and well-bred industries in the state.

Antony’s scepticism came to the fore when the state is touting various mega-meets focusing on NRI/NRK or foreign investments in Kerala. The out-come of such summits is yet to be known. In one respect, Kerala is proud of having some well-estab-lished growth companies. One of the notable among them is Kitex Garments, which is in the news today because of political interference in its day-to-day functioning. And the company is forced to move its expansion plan to other states or foreign lands. (No-vember issue).

If the Defence Minister is apprehensive of attract-ing future industries to the state the people in gener-al and those employed in Kitex in particular shudder at the plight of the company as it may affect a whole village and many other parts of the state. In Kerala’s history, it is trade unions that have often come as stumbling blocks to the smooth running of ventures. The irony is that Kitex is contemplating a way out not because of the onslaught of trade unions but of political vendetta.

It is high time that our ministers (politicians) and trade unions learnt a lesson on how to bring new in-dustries and to sustain the existing ones in the state by creating a climate conducive to growth of indus-tries.

A retired employee, Thrissur

Helping the banking sector

In the wake of a cash crunch in the banking sec-tor, Union Finance Minister P Chidambaram

has categorically announced pumping of Rs 15,000 crore into the public sector banking system to refur-bish the banking business.

IN BOX

Small cars wrong fit in US

Suzuki has announced that it will stop selling automobiles in the US. Still, despite Suzuki’s retreat in North

America, the company has made spec-tacular inroads into emerging markets over the last decade.

The low-cost compact cars sold by Su-zuki’s Indian unit have the top share in the fast-growing automobile market, and the automaker has a growing presence in South Africa.

Back home in Japan, Suzuki is a leader in a category of small cars called kei vehicles that enjoy preferen-tial tax treatment by meeting limits on length, width, engine size and horse power. The kei category has stayed

popular as a cheap option fit for navi-gating the country’s claustrophobic roads. One of the company’s kei cars, the long-selling Wagon R, is less than 14 feet long, about 5 feet wide and 6 feet high and its engine size is limited to two-thirds of a litre or a motorcycle calibre. Last month, almost as many units were sold in Japan as Toyota’s Prius hybrid.

Friend in ‘deed’

Diageo plc, British distiller and the maker of Johnnie Walker

Scotch, the world-renowned company trading in 180 mar-kets all over the world, has entered into an agreement with liquor baron Vijay Mallya to buy

53.4% stake in his United Spirits for $2.04 billion, seeking to lever up its presence in the world’s largest whisky market.

The British distiller will pay Rs 1,440 per share to buy a controlling stake in India’s largest liquor company, which will help bolster its presence in the Rs 55,000-crore Indian liquor industry.

Mallya, however, will continue as the Chairman of the company, hold-ing a minority stake of 14.9% after the transaction.

Mallya’s Kingfisher Airlines has been struggling for survival.

Colgate tops 10 brands The enigmatic oral care toothpaste

Colgate has again grabbed the No 1 spot among the most trusted brands

that tickle and tackle human taste brushing aside all other brands, both among males and females. The re-

maining nine are Nokia, Britannia, Parle, Horlicks, Clinic

Plus, Glucon-D, Dettol, Lifebuoy and Sprite among men. Pond’s , Tata Salt, Clinic Plus, Rin, Fair & Lovely, Com-plan, Britannia, Dettol and Tide are the trusted ones for women, according to the Brand Equity Survey-2012 con-ducted by Nielsen for The Economic Times.

Sectorwise the top ones are: Raymond apparel); Maruti Suzuki (four-wheelers); TVS (two-wheelers); Cadbury Dairy Milk (confectionery/chocolate); Rin (fabric care); Britannia (food products); Pizza Hut (food ser-vices); Horlicks (health drinks); Good Knight (household care); Samsung (laptops); LIC (life insurance); Maaza (soft drinks); Clinic Plus (hair care); SBI (PSU banks); ICICI Bank (private sector/foreign banks); Vicks (personal care—OTC); Nokia (mobile handsets); Big Bazaar (retailers); LG (consumer durables); Tata Sky (DTH); Airtel (tele-com); Bata (footwear); Titan (watches/accessories).

Out of this, Rs 4,000 crore has already been giv-en to the State Bank of India (SBI). The main reason for the lacuna, Mr Chidambaram points out, is the increase in the NPA of the nationalized banks. Ac-cording to him, the increase in NPA is about 0.28% more than in the previous year.

The major defaulters for banks may be the big guns, especially the corporate magnates who never fall in the wide net often strewn for small fry. Sharks can easily defile the net for small fishes.

J Premnath, Andheri

N E W S B U S T E R S

PASSLINE Nov 30 - Dec 31, 2012

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From the Editor

Editor & Publisher

Varghese Paul

KochiAshly JosePh: 9747736193

ChennaiAugustine JosephPh: 09381000534

Banglore

Jaya Chandran0988699331

Manager-MarketingSajan K09895344485

Keethara Publications Pvt Ltd38/125 1st Floor, Narakathara Road, Kochi-682 035, Kerala, India.Phone : +91 484 4027002Editorial : +91 484 3043572Marketing : +91 484 4010075 484 3043325

Marketing Office:G-238, K C Joseph Road, Panampilly Nagar,Kochi-682 036Marketing : +91 484 4010075e-mail : [email protected]

Varghese Paul

Don’t taint builders with mafia tag

The Mafia (also known as Cosa Nostra) is a criminal syndicate of the mid-19th cen-tury in Sicily, Italy. It is a loose association of criminal groups that share a common

organizational structure and code of conduct. Today it has become a generic term for any organized criminal network with similar structures, methods and interests. The word is now widely used by the media while referring to dealings in land, sand, drugs etc which are carried out in violation of the law. Those who usurp land flouting the existing rules are described as `land mafia’. Ironically, real estate developers who are a part of our culture and tradition and earnestly develop land for dwellings are also included in the category of land mafia. The real estate business is really a social and financial activity carried on by the sector for all human beings who long for a shelter over their head and for developing infrastructure for the betterment of society.

Kerala is well known all over the world for its beautiful landscape. We have enough land, but most of it is ecologically and environmentally sensitive. A large portion of land in the state remains unutilized for the reason cited above and because of the outdated and obsolete Land Reforms Act. It consists of areas where there was farming once and which have been lying idle for the last 20 or 30 years. Maybe certain hamlets in two districts in the state—Palakkad and Alappuzha—are having virtual farm land having paddy cultiva-tion as an avocation for some people. The others, also supposed to be farmers, are white-collared gentlemen who scout for data on their cyber screens instead of weather forecasts for a good crop.

The result: Kerala has plenty of uncultivated fertile land lying fallow, marshy, barren or wet. Land lying idle for two or three decades should not be considered as agricultural land and should be used for other developmental projects like industries, real estate develop-ment and for infrastructural projects. That is why Central Planning Board Vice-Chairman Montek Singh Ahluwalia suggested at an investment meet in Kochi some time ago that Kerala must utilize idle land, though it may be agricultural, for developmental purposes.

Our rulers in the state often `regret’ the dearth of land for development and housing and recommend a `vertical concept’ of housing and industrial construction. Hence acqui-sition has become a grave problem and the momentum of growth seems stuck in limbo. The Land Reforms Act curtails the people’s right to build houses and establishments on vacant plots as they are labelled agricultural land where actually no farming takes place. Cities face land shortage and rules are relaxed to have houses even on 2-cent plots. One has to pay through the nose to acquire a piece of land there.

Back to Mr Ahluwalia’s suggestion. T he Land Reforms Act must be diluted so that con-version of paddy fields into other forms or relaxation of the norms for their utilization for realty purposes becomes possible. Large-scale acquisition of land by real estate players may have earned them the tagline `land mafia’, but it is unjustifiable considering the ser-vice they render to society. As mentioned in the beginning, ‘mafia’ is a term used for some criminal association. It is something of a misnomer to term real estate developers mafia or mafia gang.


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Passline News Service

In the country’s political history Kerala has for the first time got a

big representation in the Union Council of Ministers. Eight of its MPs are now Ministers, two of them of Cabinet rank, and the rest Ministers of State. This has created a celebration mood among Keralites and this was reflected at the investment meets held afterwards to lure foreign and non-resident investors to the state. A number of investment conclaves were held and a couple of new ones are in the pipeline. Since the UDF Government came to power in the state, it seems, a new season for development has descended over Kerala, many feel.

Will the dream of the people and those in power come true? There are many ` ifs’ and` buts’. An analyst reaches the conclusion that both the Central and State Governments are of the corporate bodies, for the corporate bodies and by the corporate bodies. Ultimately, India will become a ‘corpo-rate body’. That means it will be ruled by a government dominated by big cor-porate doyens. “Whatever our Govern-ment and politicians do will not be for the benefit of the majority of the people but for appeasing the MNCs. In short, the development of a state will depend on the number of corporate honchos it has, not on the number of members it has in the Council of Ministers,” he says. While all states are on a devel-opment agenda, there exists a climate of deprivation where the masses are remaining a discontented lot, unable to meet their primary needs. The people are on an agitating mood over things like LPG subsidy, petrol and diesel price increases and the overall price spiral of essential commodities. So the nation is sitting on a powder keg. Any time we can expect an explosion. Not a technological explosion, but a psy-

chological one in the form of a mass uprising.

What do some other analysts feel about the new opportunities for the Kerala Government to carry the state further on the path of development and growth with the record number of its MPs having become Central Ministers? Some point out that the opportunities are rare. The inclusion of more Kerala MPs as Ministers at the Centre is not going to change the state’s face of de-velopment significantly, they say. They argue that a single efficient and com-mitted MP can effectively pursue the interests of the state and the constitu-ency if he/she is interested in it. There is no position in Delhi which cannot be accessed and approached by an MP for implementing developmental proj-ects. Once an MP becomes a Minis-ter their time will have to be spent for the rest of the country also to push the schemes of their Ministry all over the country. So the time available for their state diminishes.

Moreover, the time left for the UPA Government before the next election is too short to initiate major projects and also the portfolios allotted to them have not much bearing on infrastruc-ture development, they feel.

It was at this point that Congress stalwart and the number two in the Union Cabinet, Defence Minister A K Antony, in an opening salvo at a pub-lic function criticized or attacked the present UDF Government’s record on attracting Central defence projects to the state and eulogized the previous LDF Government’s, especially its Chief Minister V S Achuthanandan’s and In-dustries Minister Elamaram Kareem’s, splendid performance. Antony was ac-tually taking the lead in breaking down barriers between Government and cor-porate functionaries and advocating the

need for Kerala to do more introspec-tion. Though some concur with what Antony said, there are some others who are baffled by his statement. The latter point out that in 2011, during the state election campaigns, he (Antony) said that the LDF, Achuthanandan and Kareem did nothing for Kerala and now he says that he has no words to thank them for their brilliant performance! With this statement Antony loses his own credibility. All Keralites know that the Marxists would block every project when the UDF is in power and make a show of doing things when they return to power. One thing is true. During the Marxist rule they are able to discipline their workers and force them to accept even measures like not having a union in the defence units. If a UDF Govern-ment had tried to sign such an accord with the Defence Ministry, Marxists never would agree. How cleverly they kept it a secret! But it may be noted that though the Marxists agreed not to have a union in the defence unit, they had managed to pack the Works Com-mittee or Workers’ Advisory Commit-tee set up in lieu of the union with CITU workmen. Now even after 18 months of the UDF Government they are not able to induct their own workmen into this committee. So the hapless INTUC worker had no option but to fight. Now the leadership has disowned them!

There are others who feel that Ant-ony is quite right in pointing out the danger of starting new defence proj-ects in Kerala because of the labour unrest here all the time. The projects will get badly delayed. But it is doubtful if he is right in saying that conditions under the last LDF Government were better.

According to many, ventures like ‘Emerging Kerala Global Connect-2012’, held some time ago, to attract investment are not enough. The Gov-

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ernment should demonstrate its deter-mination by banning things like ‘nokku-kooli’ and dismantling the stations on our main roads and junctions where the loitering so-called headload workers sit around and talk and run after the pass-ing lorries to collect ‘nokkukooli’. The Government should vigorously press for better infrastructure projects and for four-lining of the Trivandrum-Man-galore rail line immediately, improving the signalling system and strengthen-ing the rails, so that passenger trains from Thiruvananthapuram to Man-galore and from Mangalore to Thiru-vananthapuram should start every half an hour and KSRTC buses should run feeder services to these railway sta-tions and major power projects. At least one LNG-based station of 1,000 MW should get commissioned every year for the next 10 years on BOT ba-sis. A big road network should also be commissioned. Fancy projects like the Rs 1-lakh-crore high-speed rail proj-ect should be dumped. Governance should be improved and made totally transparent.

It is not correct to say that indus-trial development was better under the LDF. They were not serious about new projects coming up. For example, if the LDF wanted they could have started implementation of the Kochi Metro project by 2008 and the project would have been in operation by now. The Central Government had agreed to clear the project on BOT basis with a subsidy of 20%. The State Govern-ment could have put in its equity also. But they insisted on the same pat-tern as Delhi Metro and lost four or five valuable years. The Hyderabad Metro was cleared on BOT basis and the renowned L & T took up that proj-ect on BOT basis in a tender and it is progressing well. They may say it is their policy to do such infra projects on



5public sector basis only. If so why didn’t they accept the BOT pattern for the Vizhinjam port project? The clearance for the Kochi Metro on the Delhi Metro pat-tern was obtained from the Centre only after the UDF Government came to power. But valuable years were lost. Antony perhaps wants to build bridges with the Left with an eye on support at the Centre now and during the next Lok Sabha polls. Thus go the argu-ments put forward by some.

What is becoming increasingly apparent is that the opportunities for Kerala’s growth are not to be found but forged. For such opportunities to come, the state’s culture has to undergo fundamental change. That hasn’t happened yet, but there are some prom-ising signs like Antony’s reminder.

Educational reform is essential, many believe, if Kerala is ever going behave responsibly as a great state. “What is missing in Kerala is farsighted and creative leadership. Our students must be broadmin-ded because this helps creativity. The present sys-tem of education kills innovation. Change must come with individuals,” they say.

Of course the state no longer appears to be the impenetrable fortress it once was and does have much to celebrate. There were recent reports that from a region which struggled to fulfil its sovereign commitments in 2000-01, Kerala has transformed itself into a state with manageable fiscal and debt worries by the end of the decade without sacrificing its welfare-state model. A study by economist Tapas K Sen for the Centre for Development Studies says the state’s fiscal indicators have started demonstrat-ing a positive turn. The fiscal deficit, which ballooned to a high of 53% in 2002-03, fell to a healthy 2.74% in 2012-13. All the deficit figures improved after 2003-04 reaching the lowest values of the decade in 2006-

07, with primary deficits changing to a small primary surplus.

Investments are tricking in. Even in corporate Kerala change seems to be in the air. Rigid old rules of seniority appear to be breaking down as a new generation of executives nears the top. Small pock-ets of entrepreneurial activity can be found.

But all this seems to be only superficially true as far as the economy is concerned. Overall growth still appears to be eluding. When Kerala’s rulers decided to put the state under economic shock treatment, they expected a quick route to prosperity. The reality has been anything but. Today the economy is marked by unemployment, debts and a lack of investment.

The problem is that the Government vastly exag-gerates the reality of what has been achieved. The anniversary celebrations and the Emerging Kerala and other similar meets that preceded and followed it aim to convince outsiders—and in particular increas-ingly sceptical domestic and foreign investors—that large-scale investments have already started to flow in.

Basically Kerala is trapped between a flashy cor-porate culture of fast, luxury cars, 3D LED TVs and other latest electronic gizmos and air-conditioners and a moribund political system that is beset with red tape and bureaucracy. Survey the terrain and it is easy to imagine why industrialization is having such a bad time taking root. Kerala is a small state, not even one-third or one-fourth the size of many other states in the country, with a population of 33 million. Until a few years ago it was one of the most unde-veloped states in the country. It does not produce much of its requirements of daily consumption of rice and other commodities and necessities. Of course it boasts a high literacy rate, the highest in the country,

but that is a rare bright spot.

For some time now it has followed the ‘Kerala Model’ of development though many think it has not gone down well here. By contrast, the present Government thinks private/free enterprise values will bring about results. And many investors, domestic and foreign, are interested enough in Kerala’s exper-iment in building democratic capitalization. Though attempts are being made to rebuild the state, there is a tendency among the youth to shun certain kinds of jobs which they consider ‘menial’. The state has to turn to the comparatively low-wage workers of other states who have come to seek jobs in Kerala. Here is a sect of resourceful and talented people turning their face to work. Without improving labour unrest, it does not help to suggest corrective measures to rekindle confidence. There is no chance of this hap-pening. Kerala has the maximum number of daily demonstrations and protests anywhere in the world. The people of Kerala work wonderfully outside but never when they are back home.

For those tempted to invest in the state, there is a warning: Kerala can be as treacherous as it is tan-talizing. Many companies or investors do not forget harsh lessons learned in previous times. Despite all the changes taking place in the state, foreign and do-mestic investment remains abysmally low. That such a state of affairs looms so large is a potent reminder of what hasn’t changed.

This does not mean that there are no true op-portunities for successful investment in Kerala, only that investors must learn to distinguish real transfor-mation from wishful thinking or promises of the state being investor-friendly. It must be remembered that Kerala, for all its superficial changes, is still run by the bureaucrats of the powerful ministries like Indus-tries. Many of these bureaucrats, while professing to be ‘international’ in their thinking and outlook, cling to notions that ‘excess competition’ is an inherent evil that must be controlled lest it should give rise to ‘market problems’. This is despite the fact that the rulers want business interests to dominate the scene and are trying to bring about such a situation.

Politically, too, less has changed than meets the eye. Certain parties in the UDF, despite their dis-grace, still wield substantial power in the coalition Government and are likely to hold their ground dur-ing the remaining period of the tenure too. This is why several of Chief Minister Oommen Chandy’s detractors say that, though well-meaning and hard-working, he had lost his credibility the moment the fifth Muslim League Minister was sworn in. The an-nouncement of the fifth Minister was made by the chief of the party the Minister represents. For that very reason the Chief Minister should have refused to allow him to be inducted into the Cabinet. No one knows how he can regain his credibility. Perhaps an equally tough stand on some other crucial issues in-volving the League alone will help him.

Oommen Chandy, they say, is certainly underper-forming. He has to learn to talk and move around much less and devote more time to do his work. He is incapable of doing this. It is his nature and he can-not help it.

It is clear what Kerala requires: a leadership that genuinely, rather than selectively, embraces the logic of the market. But what is also needed is a govern-ment that knows where Kerala is headed. And this, unfortunately, is precisely what’s lacking.

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The development kitThough a lot of investment summits have been held in Kerala envisaging the development and growth

of districts and employment opportunities, many of the projects envisaged for the purpose, drawn up years ago, have not either progressed well or are yet to take off. Of course, a few have been completed though they face pestering problems. Some are still in the nascent stage, some inching towards comple-tion and others remain on paper. What will be the state of these projects is anybody’s guess.

As everyone knows the number of Ministers matters little; what matters is the political will and mindset of the rulers. The following are some of these projects:Kasargod: New unit of Hindustan Aeronautics; Central UniversityKannur : Naval Academy, Ezhimala; approval for new airport; Coast Guard Academy, AzheekalWayanad: Backward Region Grant Fund (BRGF); one of the first districts selected for implementation of NREGAKozhikode: Defence shipbuilding design unit; expansion of steel complex partnership with SAILMalappuram: Campus centre for Aligarh Muslim University; pilot project of PURAPalakkad: New unit of BEML; rail coach factoryThrissur: Deemed university status for Kerala Kalamandalam; pilot project of PURAErnakulam: International Container Transshipment Terminal, Kochi Metro Rail; LNG project; new unit of BHEL at Kinfra Hi-tech Park, urban development project through JNNURMIdukki: Special package for plantation cropsKottayam: New regional centre of Indian Institute of CommunicationPathanamthitta: Sabarimala pilgrimage master planAlappuzha: Kuttanad packageKollam : Kollam-Punalur broad-gauge projectThiruvananthapuram: Indian Institute of Space Technology;Indian Institute of Science Education and Re-search; Brahmos aerospace unit; expansion of Thiruvananthapuram International Airport; urban develop-ment project through JNNURM; National Highway development; redressal of farmers’ problems; coconut refarming, tsunami rehabilita-tion;NABARD loan; development of power sector.



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Geojit BNP Paribas Finan-cial Services Ltd of Kochi,

the stock broking firm founded by C J George as Geojit Financial Ser-vices Ltd in 1987, is one of Kerala’s top wealth creators, its present equity being Rs 22.84 crore and its face value Re1. The present book value is Rs16.6 with sales for the year 2011-12 at Rs 235.5 crore and NP Rs 39.8 crore. The present market capitalization is Rs 5,44,73,40,000.

This means that the company has already given around Rs 192.7 (dividend) returns repaid to those who invested Rs 10 in 1996 or Rs 19.27 (dividend) returns repaid to those who invested Re1 in 1996. In other words the original sharehold-ers’ investment is free as they have already received their original in-vestment by 19 times, only through dividend.

The person who invested Rs10 in the IPO has already received Rs 192.7 as dividend (investment re-ceived back 19 times) and the cap-ital appreciation comes to Rs 954 (market price (MP) as on Novem-ber 19, 2012 was Rs 23.85 on a face value (FV) of Re 1 per share). If he had invested Rs 1,000, then dividend return was Rs 19,270 plus a capital appreciation of Rs 95,400. The most important part of the sto-ry is that the company made own-ers of 22,83,60,104 shares richer by Rs 95.4 on an investment of Re 1. Or, Geojit made 45,087 people richer by utilizing their (investors’)

small amounts. This is a kind of capital growth.

In addition to this, the company helped owners of 22,83,60,104 shares to participate in the industri-al growth of Kerala and helped others to get jobs. Geojit may be one of the few compa-nies which gave profits or investor returns to Kerala State Industrial Develop-ment Corporation (KSIDC). Geojit is today a leading re-tail financial services com-pany in India with presence in almost all states. The company rides on its rich experience in the capital market to offer its clients a wide portfolio of savings and investment solutions. The gamut of value-add-ed products and services offered ranges from equi-ties and derivatives to mu-tual funds, life and gen-eral insurance and third party fixed deposits. The needs of over 6,33,000 clients are met via multi-channel services, a coun-trywide network of 546 of-fices, phone service, dedicated customer care centres and the in-ternet. It has membership in, and is listed on, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). In 2007, global banking major BNP Paribas joined the company’s other major shareholders—C J George, KSIDC and Rakesh Jhunjhunwala—when

Geojit: making investors richer, aiding capital growthit took a stake to become the single largest shareholder.

The company has strategic presence in the Middle East with joint ventures and partnerships. Barjeel Geojit Securities, its joint venture with the Al Saud Group, is headquartered in Dubai, UAE, and has branches in Abu Dhabi, Ras Al Khaimah, Al Ain, and Shar-jah. Aloula Geojit Brokerage Co, the joint venture with the Al Johar Group in Saudi Arabia, is head-quartered in Riyadh with branches i n Dammam and

Jeddah. BBK Geojit Secu-rities KSC, Kuwait, is a joint ven-ture with Bank of

Bahrain and Kuwait and JZA. Geojit Qurum Business Group Financial Services LLC is the joint venture with QBG and National Securities Co and is based in Oman.

EvolUtion of thE company

It all started in 1987 when C J George and Ranajit Kanjilal started Geojit Financial Services, a part-nership firm. In 1993 Kanjilal re-tired from the company and Geojit became the proprietary company of George. In 1994, it became a pub-lic limited company named Geojit Securities Ltd.

KSIDC became a co-promoter of Geojit in 1995 by acquiring a 24% stake in the company, the only instance in India of a Government entity participating in the equity of a stock broking company.

The year 1995 also saw Geojit being listed on the leading region-al stock exchanges. It was listed on the Bombay Stock Exchange (BSE) in 2000. The company’s wholly owned subsidiary, Geojit Commodities Limited, launched online futures trading in agri-commodities, precious metals and energy futures on multiple commodity exchanges in 2003. This was also the year when the company was renamed Geojit Financial Services Ltd (GFSL). The board consists of

professional directors, including a Kerala Government nominee.

From July 2005, the company has also been listed on the Na-tional Stock Exchange (NSE). It is a charter member of the Finan-

cial Planning Standards Board of India and is one of the larg-est depository participant (DP) brokers in the country.

On December 31, 2007, the company closed its commodi-ties business and surrendered its membership in the various com-modity exchanges held by Geojit Commodities Ltd. Global banking major BNP Paribas took a stake in 2007 to become the single largest shareholder. Consequently, Geojit Financial Services Ltd was re-named Geojit BNP Paribas Finan-cial Services Ltd.

The person who invested Rs10 in the IPO has already received Rs 192.7 as dividend (invest-

ment received back 19 times) and the capital appreciation comes to Rs 954 (market price (MP) as on November 19, 2012 was Rs 23.85 on a face value (FV) of Re 1 per share). If he had invested Rs 1,000, then dividend return was Rs 19,270 plus a capital appreciation of Rs 95,400. The most important part of the story is that the company made owners of 22,83,60,104 shares richer by Rs 95.4 on an in-vestment of Re 1. Or, Geojit made 45,087 people richer by utilizing their (investors’) small amounts. This is a kind of capital growth.

GROWTH COMPANIES-III


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Geojit BNP Paribas has set many milestones including numerous in-dustry firsts.

1986: C J George became member of Cochin Stock Exchange.

1987: C J George and Co was set up at Ravipuram, Kochi.

1988: Company was renamed as Geojit & Co.

1994: Becomes a public limited company named Geojit Securities Ltd.

1995: KSIDC acquires 24% equity stake; membership of NSE; public issue.

1996: Launch of portfolio manage-ment services with SEBI registra-tion.

1997: Depository participant (DP) under National Securities Deposi-tory Limited.

1999: Membership of BSE.

2000: BSE listing; first broking firm in India to offer online trading facil-ity; commences derivative trading with NSE; integrates the first bank payment gateway in the country for internet trading.

2001: Becomes India’s first DP to launch depository transactions through the internet; establishes joint venture in the UAE to serve NRI customers.

2002: First in India to launch an in-tegrated internet trading system for

cash and derivatives segments.

2003: Geojit Commodities Limited, wholly owned subsidiary, launched online futures trading in agri-com-modities, precious metals and en-ergy futures on multiple commodity exchanges; national launch of on-line futures trading in rubber, pep-per, gold, wheat and rice; company renamed Geojit Financial Services Ltd.

2004: National launch of online fu-tures trading in cardamom.

2005: NSE listing; Geojit Credits, a subsidiary, registered with RBI as a non-banking financial company; national launch of online futures trading in coffee.

2006: Charter member of Finan-cial Planning Standards Board of India.

2007: BNP Paribas takes stake in the company’s equity, making it the single largest shareholder; estab-lishes joint venture in Saudi Arabia to serve Saudi nationals and NRIs.

2008: BNP Paribas Securities In-dia (P) Ltd, joint venture with BNP Paribas SA for institutional broker-age.

2009: Launch of property services division and online trading in cur-rency derivatives; On BNP Paribas becoming largest stakeholder in Geojit BNP Paribas, company is renamed Geojit BNP Paribas Fi-nancial Services Ltd.

Bonus announcements

year Ratio Ex bonus date

2005 1:1 29-3-2005

2000 1:1 12-2-2001

Dividend details

year Dividend (%)2012/03 752011/03 752010/03 752009/03 502008/03 702007/03 402006/03 402005/03 202004/03 252003/03 52002/03 52001/03 82000-03 251999/03 151998/03 111997/03 101996/03 7.5

Information provided by Mr Babu Vettoor. Contact No: 9895356723

Adv.

2010: Launch of FLIP (financial investment platform), a new ad-vanced online investment platform and state-of-the-art mobile trading platform to empower clients to trade from anywhere; Barjeel Geojit Se-curities, joint venture with Al Saud Group, is headquartered in Dubai and owns branches in Abu Dhabi etc; Aloula Geojit Capital Co, joint venture with Al Johar Group, in Saudi Arabia is headquartered in Riyadh with branches in Dammam and Jeddah; BBK Geojit Securi-ties KSC, located in Kuwait, joint venture with BBK and JZA; QBG Geojit Financial Services LLC, joint venture with Qurum Business Group (QBG) and National Securi-ties Co. and based in Oman.

2011: Geojit BNP Paribas and JZ Associates LLC, Kuwait, signed a JV deal with Bank of Bahrain and Kuwait to form BBK Geojit Securi-ties KSC; joined hands with Qurum Business Group and National Securities Company in Oman to form QBG Geojit Securities LLC, Oman.

2012: Qualified foreign inves-tors (QFI) investment services launched.

Jayaraj Plus Towers, Murinjapalam, Medical College P.O.Desk: +91 471 6065511 / 6065522Mob: +91 9995139933 / 994733339e-mail: [email protected] / [email protected]

Reserve Your StallCall @ 9947733339

corporate office at vennala, Kochi


8


Travel and tourism are closely related to each other and ac-

cessibility is one of the vital compo-nents necessary for tourism growth and development. Every form of tour-ism involves travel and it may be through road, rail, water or air. The his-tory of rail transport in the state dates back to March 12, 1861, when the first train built by the Madras Railway Com-pany ran along the Beypore-Tirur line covering a distance of 30.6 km. The Railways have played a pivotal role in the development and promotion of tourism, especially domestic tourism, in the state. Domestic tourists depend to a great extent upon the Railways for their travel needs. Being a cheap, re-laxed and safe mode of transport the Railways are always preferred by even foreign tourists.

maJoR linES, StationS

Kerala has a small rail network in comparison with other states and the total number of stations in the state is around 200. The major lines within and originating from the state include Trivandrum-Kanyakumari, Trivandrum-Ernakulam (via Kottayam), Trivandrum-Ernakulam (via Alleppey) famed as the coastal railway line, Kollam-Punalur, Ernakulam-Shornur, Thrissur-Guruv-ayur, Shornur-Palakkad, Shornur-Nil-ambur Road, Shornur-Mangalore etc. Shornur-Nilambur Road and Kollam-Punalur are the two major scenic and eco-friendly rail routes of the state.

The major railway junctions are Kollam Junction, Kayamkulam Junction, Er-nakulam Junction, Palakkad Junction and Shornur Junction. Trivandrum is the one and only central railway station in the state from where the maximum number of trains are operating.

ShoRnUR—‘RailWay capital’

Situated on the banks of the Bhara-thappuzha, the Shornur Junction sta-tion is a landmark of Shornur town. Known as the largest railway platform of the state it is also the only junction having four diversions to different di-rections. Located almost in the centre of the state it acts as a hub because almost all trains pass through it and it is located in Palakkad district. In terms of number of trains running through it, Shoranur Junction stands first in the state. Currently the station has seven platforms.

The major trains passing through the state are Rajdhani Express con-necting Trivandrum to New Delhi, Vivek Express from Kanyakumari to Di-brugarh, Duronto Non-stop Express to Delhi, Kerala Express from Trivandrum to New Delhi, Himsagar Express con-necting Kanyakumari-– Jammutawi, Netravati Express connecting Trivan-drum-– Lokmanya Tilak, Chennai Mail, Parasuram Express, Island Express, Mangala-Lakshwadeep Express, Sabari Express, Guruvayur-Chennai Express etc.

Besides providing cheaper and reliable transportation, the Railways also act as a centre of providing tour-ist information. The tourist information centres of the Department of Tourism (DOT, Kerala) and IRCTC (Indian Rail-way Catering and Tourism Corporation Ltd) are functioning at the major railway stations of Kerala. IRCTC promotes at-tractive and economical rail-based di-

verse tour packages, both pilgrimage and leisure. Kerala Tourism has effec-tively utilized Rajdhani Express for its tourism promotion mainly in North In-dian states. The promotional campaign is tagged as Go Kerala or Chalo Kerala (both in English and Hindi). Besides it is also the first state from the country to use the external space of train coaches as a medium for tourism branding.

Rlys can further boost tourism

During each budget the state is receiving new trains but because of inadequate tracks the

trains are frequently late. The doubling of the Shornur-Mangalore line is yet to be completed and similar is the case of the Ernakulam-Kottayam line. A majority of

the railway stations in the state including main junctions are not properly maintained and many of them are having limited numbers of platforms having shorter lengths and lack sufficient space and amenities for passenger and cargo handling. Major stations including tourist and pilgrimage importance like Kozhikode, Aluva, Shornur, Varkala, Trippoonithu-ra, Kochuveli, Cochin Harbour Terminus, Vallathol Nagar, Munroe Thuruthu, Bekal Fort, Kadalundi, Wadakkanchery, Ernakulam Junction etc are to be developed and upgraded with modern facilities at the earliest. More Shatabdi trains and intercity express trains should be operated at frequent intervals. A triangular station should be implemented at Shornur in order to accommodate the trains passing through the nearby outer line. Pas-senger trains should be operated at regular intervals.

Abin K I

8 9TRAvEl ANd TOuRISM



9

The picturesque state needs a form of tourism promotion that very well suits its native culture, rural tradition and values encapsulating a unique cultural identity. The exteriors of the coaches are displayed with beautiful photographs of the state displaying its unique tourism products such as sce-nic backwater stretches, greenish tea estates, mystic hill stations, serene beaches and traditional art forms like Kathakali and Mohiniyattam. Paint-ing the Rajdhani Express is like hav-ing a giant moving billboard that goes through Rajasthan, Gujarat, Maha-rashtra, Goa and Karnataka on its way to Thiruvananthapuram and back. Pro-moting domestic tourism is the motive here and when the summer months begin in the north of India the train with its beaches, backwaters and green landscape will lure people to the state.

hill tRainS

Idukki and Wayanad districts are totally ignored by the Railways at pres-ent. Introduction of hill trains in these districts can attract tourists in large numbers. A tourist train on the model of the Golden Chariot or Deccan Odys-sey should be started inside the state by linking major tourist spots in order to explore and exploit its fullest tour-ism potential. Nilambur-Shoranur and Kollam- Shenkottai are serene routes for operating tourist trains on a pilot basis.

pRoJEctS DElay

The new route connecting Angama-ly to Azhutha in Pathanamthitta district will be a great help for pilgrims visiting Sabarimala. The line from Nilambur to Nanjangaud if implemented will give a facelift to the tourist traffic coming to the state. The Kochi metro rail project connecting Kochi to the outskirts of the city will be of great advantage to the commuters as well as to the tourists. The recently started two MEMU (main-line electrical multiple unit) trains con-necting Ernakulam to Kollam via both Kottayam and Alleppey was able to re-duce the travelling time as well as the crowd of passengers to an extent.

BARRIERS

The Railways face severe chal-lenges inside the state and the prime one is the nonavailability of adequate land for line expansion. During each budget the state is receiving new trains but because of inadequate tracks the trains are frequently late. The doubling of the Shornur-Mangalore line is yet to be completed and similar is the case of the Ernakulam-Kottayam line. A major-ity of the railway stations in the state including main junctions are not prop-erly maintained and many of them are having limited numbers of platforms having shorter lengths and lack suffi-

cient space and amenities for passen-ger and cargo handling. Major stations including tourist and pilgrimage impor-tance like Kozhikode, Aluva, Shornur, Varkala, Trippoonithura, Kochuveli, Cochin Harbour Terminus, Vallathol Nagar, Munroe Thuruthu, Bekal Fort, Kadalundi, Wadakkanchery, Ernaku-lam Junction etc are to be developed and upgraded with modern facilities at the earliest. More Shatabdi trains and intercity express trains should be operated at frequent intervals. A trian-gular station should be implemented at Shornur in order to accommodate the trains passing through the nearby outer line. Passenger trains should be operated at regular intervals.

Accommodation facilities offered at the railway stations have to be im-proved and a majority of the dormito-ries in the stations are not functioning properly. The functioning of the tour-ist information centres in many of the stations is not satisfactory because of the absence of trained and quali-fied personnel and many centres exist only in name. A pilgrimage information desk should be set up at Kottayam and Chengannur stations to meet the requirements of Sabarimala pilgrims. Many tourist spots are situated in

close proximity to railway lines and stations but unfortunately they are not highlighted and promoted through the Railways in a proper way. Nearby tour-ist destinations and products should be promoted through tourism video displays and images at the railway sta-tions. Distances from the railway sta-tion to the tourist destinations should be clearly mentioned. A new station near Nedumbassery airport will be of great help for the airline passengers. A joint effort between DOT and the Rail-ways is needed at the earliest in order to promote Kerala Tourism through the Railways.

Despite the shortcomings the Rail-ways in the state are still doing an ad-mirable work for tourism development and promotion by linking almost all the metro cities and tier-II cities of the country with an efficient network of un-interrupted transport services.

The Railways are perhaps one of the most important systems of trans-port in the state ensuring a smooth transition of passengers including tour-ists from one destination of the state to another and outside the state.

(Abin is Lecturer in Tourism, De-partment of Tourism Studies, Mahatma Gandhi University, Kottayam)

8 9



10


aaDhocc SoftWaRE tEchnoloGiES pvt ltD

Variety of software solutions

Kochi-based Aadhocc Software Technologies Pvt Ltd is a growing web designing company.

“The rapidly growing business and working atmo-sphere in Kerala inspired me to start a business in the state. It was in 2009 that I set up what are today Aadhocc Software Technologies and South India’s most popular online food ordering portal, yummybay.com,” says Ketty Cherian, founder Managing Direc-tor and CEO, Aadhocc Software Technologies Pvt Ltd and Amicitia Food Mark Pvt Ltd.

After taking his MBA from De Montfort University (DMU), London, in 2001 Cherian started his career at Tressure World as marketing head. In 2009 he launched Aadhocc and Amicitia Food Mark with a capital of Rs 8 lakh. A rapidly growing web designing company, Aadhocc offers a wide variety of software solutions that range from software development, web development, internet marketing and SEO, covering almost all the fields in the best possible ways. “In the initial stages we faced many financial and functional problems such as creating awareness about these things among our local bodies and about creating our brand image. But we overcame these. With effective and time-bound completion of work and good rela-tionships with clients we could make rapid progress,” says Ketty Cherian.

Aadhocc’s expertise in developing specially tai-

lored applications is its key area of focus and it is a professional, software development, website design-ing and internet marketing company providing full-scale web services including B2B and B2C e-com-merce solutions at affordable rates and is acting as an offshore development centre for overseas devel-opment firms. “Over the last couple of years, we’ve grown to 32 employees. My role as CEO involves recruiting and managing the executive team, leading the product/strategic visions and evangelizing Aad-hocc and yummybay around the world. Our last-year turnover was Rs 1crore, “says Cherian.

An innovative company providing a series of web-based software applications that help customers create successful online initiatives, Aadhocc offers services to keep your business systems running and also ensures that the client needs are met in today’s ever-developing world.

vintEES tEchnoloGiES pRivatE limitEDThe way to safe parking

“All of us have experienced parking problems in crowded places. Finding a parking spot, parallel park-ing and the danger of running into other vehicles are the reasons that make you want to turn to go back home. This is what prompted me to start a parking sensor installation business in our city,” says Surej P Kurian, CEO, Vintees Technologies Pvt Ltd, Kochi. Vintees Technologies was set up in 2011 with a capi-tal of Rs 7 lakh. “Initially, we educated the people about the importance of installing the parking sen-sors. Customer satisfaction is the motto of our busi-

ness,” he says.

Vintees Technologies is one of the important parking sensor installation companies. Parking sen-sors consist of ultrasonic proximity sensors that are integrated into the bumpers of cars. The sensors are connected to the reverse gear which when engaged switches on the parking sensors that emit high-fre-quency sound waves, the echo of which is received and evaluated by the sensors.

Vintees parking sensors have visual LED or LCD screens that display readouts to indicate how close a vehicle is to an obstacle in its path. The beep also continues to provide audible warning to the driver at the same time. Vintees successfully connects both reverse parking sensors and reverse camera; it leads to greatly enhanced safety.

Vintees provides 100% customer service facili-ties. It has an annual turnover of Rs 25 lakh.

finlanZa SEcURity SERvicES & SolUtionSTowards reducing cyber crimes

“The increasing number of cyber crimes and security problems made me start Finlanza Secu-rity Services and Solutions, Kottayam, to ensure the availability of the benefits and rights offered by international cyber laws through the prevention of vulnerabilities, detection and handling of indescrib-able situations and creation of awareness about po-tential threats, as the world is built up and runs as a sequence of ones and zeros,” says Arun T S, the company’s CEO.

The real world of the budding entrepreneurThe real world of the budding entrepreneurPASSLINE did, speaking to five

startup businessmen recently. They employ few people; all the five we write about have under 35.

The five who tell their stories here have succeeded with innovative tech-nologies, astute management, wits or luck. All may not have succeeded to the extent they desired, or they may likely be big tomorrow. Whatever it is, one will learn something useful from each.

An outstanding feature of the work-ing of these units is that the setbacks they faced during their formation and later did not sap their determination. They are simply focused more on

what they can do than on what every-one else thinks can’t be done. These entrepreneurs have created wealth and jobs. And they expect to keep on doing so. At a small business, one can find a clearer sense of purpose—the unit knows what it is doing and where it is trying to go. The means of com-munication are short and direct, often because the owner himself/herself walks into the factory or office very of-ten. Of course financing is hard to find, sometimes impossible.

One reason why growth is slow is that most of them employ few people. Bureaucracy and lawsuits can break a small company. Yet the entrepreneur-ial sector thrives.

The enterprises cited are all IT units. According to the Kerala Govern-ment’s IT Policy 2012, there will be at least 3,000 technology startups by 2020. Achieving this target does not seem to be impossible because during the last couple of years many of our young, talented professionals have successfully started their own busi-nesses. Most of these have a capital of less than Rs 10 lakh and they have successfully identified their functional areas as software development, secu-rity system creations, SEO manage-ment and so on. These budding entre-preneurs’ activities are quite inspiring for our upcoming entrepreneurs.

Ketty Cherian

Surej P Kurian


Startup ventures are designed to motivate

the brightest, most creative and hardest-working indi-viduals to improve the use of society’s resources, increase employment and provide a broader range of quality goods and services. Few me-diapersons, print and visual, venture out to see firsthand what some of these men and women who run these com-panies are doing.

Arun T S

STARTuP COMPANIES


11Finlanza LLP is an information security firm

started by a team of young information security and programming experts under the leadership of Arun who, after taking his BTech, worked in an IT com-pany. Finlanza was started in 2010 with a capital of Rs 6 lakh.

“Cyber security is the passion of our team mem-bers. We started our career as anti-virus creators. We thought of a solution to reduce cyber crimes, and finally formed Finlanza. At the beginning we strug-gled to convince the people of the importance of the security management system. We took different ex-amples from other countries. Today we have eight employees,” Arun says.

“Our tagline says Filanza aims at bringing in ‘a new dimension to security’ through a change in the way the world looks at the ever-evolving domain of information security in the 21st century. We entered this relatively new domain of IT development-cum-service by taking into account the future requisites and projected demand for information security as the world tends to rely more and more on information technology in every aspect of day-to-day processes. Our turnover last year was Rs 11 lakh,” he says.

Filanza has been established with a vision to build a world empowered by the possibilities of technology and armoured against its challenges. Information se-curity is slowly but alarmingly getting realized as the most essential and dynamic IT sector of the present day, thanks to incidents of security failures leading to financial losses and defamation of many industries, institutions and individuals.

UniWaRE SolUtionS High-security software solutions

Deepak, an ambitious businessman, started a software solutions company named Uniware

Solutions Pvt Ltd at Thiruvananthapuram in 2010 with Rs 6 lakh as its capital.“Availability of enough man-power and the hard-working mentality of our people motivated me to start it. Launched in 2010, the com-pany specialized in creating brand identities and soft-ware development. There are today 10 employees,” says Deepak, the company’s CEO. “Initially we had problems creating a brand image and client relation-ship. We introduced high-security software solutions, which came to be accepted by our clients. Today we are on the path of success,” he says.

After his BTech Deepak worked as CEO in E C Solution, Kochi. The idea of starting Uniware Solu-tions was to focus on creative internet-oriented busi-ness with innovative ideas. It specializes in software

development, creating brand identity, website de-signing, web development, web hosting SEO (search engine optimization) and content management sys-tem.

”Our web development is SEO with a total project management structure. It has proved its presence in the international and regional internet marketing arena with quality and dedicated services,” says Deepak. Uniware Solutions has grown to become a leading search engine marketing, creative, conver-sion-friendly design company and has found a niche in the market by delivering high-end value to the broad base of clientele at reasonable rates.

Uniware had a turnover of Rs 15 lakh last year.

fit Soft SolUtionS Website design services

Established in 2010 Fit Soft Solutions is a popular website designer in Kochi. “I was

employed in an IT company for some years for spe-cializing in website design services. My working experience motivated me to start a business of my own in my field, and thus was started Fit Soft So-lutions,” says Jayadevan T R, CEO of the firm. Fit Soft Solutions, started on a capital of Rs 2 lakh, is a professional IT solutions, website design and web application development company. “There were implementation difficulties in the initial stage but we boldly faced them.

We also had to face tough competition from other companies. But our plus point is that we offer more creative and dynamic software facilities. Fit Soft So-lutions specializes in customer website design ser-vices, Joomla, CMS customization, dynamic web-site, website maintenance and redesigning, search engine optimization, search engine marketing, af-fordable law-cost small business websites etc.

“We’ve proven experience and expertise in de-signing websites that generate sales and are an as-set to your business. As a website design company we offer a full-circle approach in website design and web development where the actual web design ef-fort covers only 40% of the entire project pie. Our website designs include strategic planning, business intelligence, creative application development, prod-uct/service promotion and solution maintenance.

Most of our time goes in understanding your busi-ness objectives, defining the problem and finally de-signing the best possible solution. Your website can offer you the best return for your investment, if done correctly. We had a turnover of Rs 20 lakh for last year,” says Jayadevan.

Deepak

Jayadevan T R


12


We are destined to witness the slow death of ancient Indian

culture which places much importance on honesty, integrity and justice. The next generation too cannot escape the impact of this diminution in values.

A person who pays Rs 100 to a po-liceman for violation of a simple traffic rule and our ministers and politicians who swallow crores and crores of ru-pees commit the same mistake. The common man often wonders how this illegal wealth is warehoused, consider-ing the mindboggling magnitude of this vice. The members of this big amorous league have many a method siphoning off this ill-gotten wealth for safekeeping into foreign countries. They also have methods of whitewashing this money which is often referred to as ‘money laundering.’ The Government is also aware of these techniques, but no seri-ous action is taken, as both the parties in power and in the opposition would be called upon to defend themselves. There is no wonder hence that the par-ties in power and the Government offi-cials under them employ evasive tech-niques stalling any action in the right direction.

As already said the common man is not fully aware of the magnitude of the problem which has created a paral-lel economy in our country and in this article let us have a peep at the bleak areas of our national conscience.

REal EStatE DEalinGS Ordinary citizens are forced to cre-

ate black money when they enter into real estate transactions. It is a public secret that the value of immovable property transferred is understated in the documents registered. Even the Government is aware of this. That is

why a particular value has been noti-fied for each and every geographical location in the state for the purpose of calculating stamp duty. Despite this ac-tion which is intended to garner more revenue as stamp duty, it is still evident that the actual consideration passed between the buyer and the seller is many times the fair value fixed.

For the buyer of the immovable property, illegal benefit is derived on two counts. The first one is savings in stamp duty and the second is that the black money of the buyer could be used to pay the difference in the value according to the document and actual consideration.

The sellers of the immovable prop-erty also stand to gain. The important one is that the income tax payable on the capital gains arising out of the transaction is reduced to a consider-able extent. However, the money re-ceived as ‘black’ cannot be deposited in a bank or introduced in the books of account. Therefore, such money is again invested in real estate, for meet-ing the ‘black’ consideration and the vicious circle continues. The so-called ‘black money’ is also used to buy lux-ury products such as new-generation motor-cars, electronic gadgets and the like. Introduction of this money into the general market for purchase of con-sumable items without bargaining has the effect of more money chasing less supply of goods which causes inflation. There is no doubt that the ordinary con-sumer suffers but he meekly concedes this as an inevitable vice that should be lived with.

Another area where black money is used is for buying gold (bullion) in the shape of bars and coins which are kept in bank lockers. The space required for keeping this precious metal is much less than what is required for keeping the currency notes as such. This is one of the reasons why we witness unprec-edented increases in gold prices.

There is a danger awaiting those who accept unaccounted cash. Re-cently, there were reports of unprece-dented infusion of fake currency notes into India. If these currency notes are used to settle illegitimate transactions, there is no way in which these can be converted into accounted money, and such currency notes rest in suitcases, iron boxes, bank lockers etc which will never come into the open.

coRRUptionThere is no doubt that the amount

received through corruption adorns the

character of black money. We are all privy to this when we buy some goods without a legitimate bill so that we may save on sales tax or VAT. The com-mon man also pays bribes to speed up governmental procedures, to escape legal punishments etc. But the masses have now accepted this as a legitimate method of getting things done and it has to be stated that this mindset is a reflection of the general immorality that has affected our social fabric.

The Government officials belong-ing to lower cadres use the black money they receive by way of bribes for a good living and for conspicuous consumption as the amounts received are meagre and not enough to ac-cumulate. But they represent only a small percentage. When the upper

league members receive bribes and kickbacks, it is not possible for them to spend it away. Therefore, they are forced to convert this into legitimate wealth and there are many means to do this. Clandestine machinery is in place where ‘conversion agents’ help them out to achieve their goals.

Just go beyond and have a peep at the backgrounds of business tycoons and highly placed political bosses in our country. There are skeletons in their cupboards! Almost every one of them has kith and kin working abroad. But if one investigates further, it would be, in many cases, found that these people abroad do not have much income gen-

erated in their countries of residence. However, these ‘kith and kin’ receive Indian black money through the ‘ha-wala’ route which is sent back to their mentors through normal banking chan-nels as ‘gift’ which becomes purified money in India! There are people who are stalwarts in the game, who carry out the dirty tasks quite efficiently, of course for a commission! This method of ‘overcoating’ black with white paint is known among these circles as ‘NRI route.’ Not many of the enforcement agencies bother to investigate whether the sender of money in foreign ex-change into India has genuine sources of income abroad. They are apparently satisfied with the bank passbook en-tries evidencing receipt of foreign ex-change and with letters from the remit-ter confirming the transaction.

thREat to national SEcURity It is a well known fact that the men-

ace of black economy which runs par-allel to the national economy poses a serious threat to our national security as terrorist activities are known to be funded from this segment. When mon-ey and power join together, it becomes a formidable force to confront. When antinational elements within the coun-try join this force it becomes all the more difficult to defend. The drug ma-fia also joins this caucus to make the situation worse beyond imagination.

Why blacK monEy? In a developing country like India,

there are various avenues for corrup-

S c a m s ’ o w n c o u n t r y

K C Joseph Varghese

12 13

The common man often wonders how this illegal wealth is warehoused, considering the mind-

boggling magnitude of this vice. The members of this big amorous league have many a method siphoning off this ill-gotten wealth for safekeeping into foreign countries. They also have methods of whitewash-ing this money which is often referred to as ‘money laundering.’ The Government is also aware of these techniques, but no serious action is taken, as both the parties in power and in the opposition would be called upon to defend themselves. There is no won-der hence that the parties in power and the Govern-ment officials under them employ evasive techniques stalling any action in the right direction.

CORRuPTION



13tion and consequent generation of taint-ed money. Contracts from the Govern-ment, purchase of defence equipment, transfer of technology etc all require kickbacks to the ministers, politicians, and bureaucrats concerned. This is well known to multinational conglom-erates and Indian business tycoons. There are people who work as liaison agents who also get their share in the loot, furthering generation of black money.

High tax rates, licences and per-mits, ‘hawala’, smuggling, drug traf-ficking, under-the-table donations to political parties, terrorism etc are the main reasons ultimately nurturing the black money economy. Even though ‘licence raj’ is said to be over, there are still grey areas where autocratic discretionary powers are vested with ministers and bureaucrats. It has to be understood that uncontrolled dis-cretion without checks and balances breeds corruption and results in further generation of black money.

According to a study conducted by the National Institute of Public Policy, the black money in circulation is Rs 37,000 crore. This works out to more than 20% of the gross domestic prod-uct (GDP) of the country. In the mean-while, the International Monetary Fund (IMF) has estimated this at 50% of GDP based on a survey conducted by it. These figures do not include black money stashed away in foreign coun-tries including tax havens. The Gov-ernment of India admits an astound-ing high figure at Rs 25 lakh to Rs 70 lakh crore of rupees as black money in India. We will take a long time to count the zeros! If we take a look at the scams that have come to light dur-

ing the past 25 years or so, we would realize that there is no overestimation in these figures. But we all forget the past scams when a new scam comes to light.

India is a democracy and we boast of being the largest one in the world. A democracy rests on three pillars which are statutory bodies— Parliament, the executive and the judiciary. Parlia-ment is supposed to be the supreme

of the three entrusted with the power of enactment of laws of the land. But it cannot supersede the provisions en-shrined in the Constitution unless the Constitution itself is amended which Parliament is empowered to do. The law-enactment procedures and the exercise of powers are subject to re-view by the judiciary which has, among other powers, the paramount power to strike down any legislation which is unconstitutional. The power of the ex-ecutive flows from Parliament by virtue of the fact that the Council of Ministers is elected by Parliament. Even though not directly coming within the definition of the three pillars of power, the Comp-troller and Auditor General of India and the Election Commission are indepen-dent autonomous bodies with statutory powers enshrined in them to stand vigil on the activities of the executive and other agencies. They are constitutional authorities who cannot be removed ex-cept through impeachment by Parlia-ment as in the case of the judiciary.

I have briefly narrated the hierarchy of democracy in India in order to high-light the importance of the fourth es-tate, ie the media, which, though not a statutory body, brings to light the news within and outside the Government for

public awareness. However, as in the case of the masses, the fourth estate also appears to forget past scams when news about new ones breaks out. The media also suffers from sen-sationalism camouflaged as investiga-tive journalism.

Now let us look back at some of the important and shocking scams that have plagued this country.

1. 2G Spectrum scam: The then Tele-com Minister, A Raja, is under trial for this scam. According to estimates of the CAG, the scam involves a stupen-dous Rs 1,76,000 crore. However ac-cording to the CBI, it is only Rs 36,000 crore. Big relief!

2. commonwealth Games scam: This points to Mr Suresh Kalmadi. Suspected sum involved is Rs 35,000 crore.

3. Telgi stamp paper scam: Abdul Karim Telgi is accused of selling fake stamp papers worth Rs 20,000 crore in 12 states.

4. Satyam scam: It is considered to be the biggest corporate scam ever, though the Government appears to have lost nothing. However, Ramalinga Raju, the then Chairman of the com-pany, is alleged to have manipulated the accounts of the company and the shareholders lost around Rs 14,000 crore, according to primary estimates.

5. Bofors scam: In the 1980s it was alleged that then Prime Minister Rajiv Gandhi was involved in the scam re-ported to have taken place in the pur-chase of Bofors guns for the Indian

Army. The alleged amount is Rs 8,000 crore.

6. Fodder scam: The alleged culprit is none other than Lalu Prasad Yadav, former Bihar Chief Minister and former Union Railway Minister. The year was 1996. The alleged amount involved in the corruption was Rs 900 crore only.

7. The hawala scam: Year 1996. The amount suspected is 16 million US dol-lars. Even BJP stalwart L K Advani is also accused of being a part of it. The mysterious part about the scam is that the funds, as reported by the media, had been diverted to the notorious Kashmir terrorist organization called Hizbul Mujahideen.

Further to come are recent scams relating to coal mining which will be discussed later as full facts are yet to be unearthed. Among those we have forgotten and the media has ignored is the late Harshad Mehta’s share market swindle (Rs 4,000 crore in 1992) which affected the share market only.

Numerous are the corruption cases against our honourable ministers and political leaders. Some have been con-victed and some are facing trial. These are over and above those included in the foregoing paragraphs.

Examples are:

Kripasankar Singh, former Presi-dent, Mumbai Congress Chapter and

Maharashtra’s former state minis-ter, accused of amassing wealth dis-proportionate to declared income; Ban-garu Lakshman, former BJP President; Prakash Singh Badal, former Punjab Chief Minister; Sukhbir Singh Badal, former Deputy Chief Minister of Pun-jab; Ashok Chavan, former Chief Min-ister of Maharashtra; Pinarayi Vijayan, former Electricity Minister of Kerala, in the SMC Lavalin case; Sukh Ram, for-mer Telecom Minister; G Janardhana Reddy, Karnataka MLA; B S Yeddi-yurappa, former Chief Minister of Kar-nataka; …The list goes on…

Our judicial system was consid-ered as sanctum sanctorum once. This myth has been exposed by the com-ment made by a former Chief Justice of the Supreme Court of India that 20% of the Indian judiciary is corrupt. It is also disheartening to note that the first Chief Justice of the Supreme Court from Kerala is also alleged to be cor-rupt even though not yet proved.

(K C Joseph Varghese is a Kochi-based chartered accountant)

12 13



14


The Kerala Government unveiled its IT Policy 2012 recently. Un-

like the previous policies of 1998, 2001 and 2007, this year’s IT policy gives ample importance to creating eco-friendly measures conducive to the growth of the IT sector in the state like promotion of solar power for IT firms and green building norms for the sec-tor. The policy also claims that it will address the long-pending complaint of the IT fraternity that the state lacks support facilities like recreational and quality life inside the parks. The high-light of the policy is that it envisages a culture called ‘walk to work’, allowing private infrastructure developers inside the Government IT parks.

The policy document says the em-ployees of IT parks prefer to walk to work, instead of commuting long hours to their workplaces. The need for com-mercial amenities like malls, budget apartments, schools, hospitals, hotels, day-care centres, restaurants etc in-side the park arises from this concept.

A striking point of the IT policy is the welcoming of private IT parks and the accessibility to Government-owned land for private IT infrastructure provid-ers. No private players will finish the work in a time-bound manner. Smart City is a stark example of the failure of the PPP model of infrastructure de-velopment in the state. To everyone’s great surprise there is no mention of Smart City in the latest IT policy.

Criticism is pouring in against the Government move to promote a town-ship culture in the IT parks enabling private players to use 50% of the park campus to set up commercial ameni-

ties. The criticism gathers strength from the doubt that private investors are to burn their energy and money on real estate activities rather than on the de-velopment of the IT industry. In a way, it is true because in a state like Kerala land is scarce unlike in neighbouring states where land is abundant. Kerala can’t allocate land to private players even on lease basis. People from dif-ferent sectors allege that the 2012 poli-cy gives more encouragement to the IT outsourcing industry and infrastructure providers. Real estate firms posing as IT developers will eventually show their true colour as land grabbers.

The landlessness of the state and the realtors trying to grab IT land in disguise will certainly stay a sore thumb forever. While the state must try to steadily develop its earmarked land for IT business purposes (like the Technopark Phase 2, 3 and 4 plans), projects like Smart City swirl in rotten politics (a la Kochi Metro) and give little hope to Malayalees.

The fact that is widely accepted by investors is our state is ideal for in-dustries like tourism and IT. But keen observers of the state’s development will contradict this. According to them, despite the state- of-the-art IT parks and human resources in the state our position in export earnings is minis-cule compared with our neighbouring states. This is cited as a failure of the state. The IT industry should transform itself and cover areas like nanotech-nology and other modern applications as is the case with the advanced coun-tries. Kerala has also failed to attract major IT giants like Microsoft, Apple, Dell, Intel or HP for that matter. It shows the authorities’ failure to portray the state as an ideal destination, since those companies are the torch-bearers in the field and are doing business in mighty volumes.

Instead of getting into real estate development of land for industry the state could well develop manpower

for IT/high-tech business. So far, the state’s ventures in making the man-power of the state employable have not been hugely successful. From time immemorial, Kerala labour has migrated to greener pastures and we should accept this historical perspec-tive, rather than trying to bring them all back into the state as employees and employers. Presently, 11% of national IT manpower happens to be Keralites. It would be good if we developed our manpower more employable in doing jobs in the upper end of the IT value chain and made them available to en-terprises of the country and the world. The plan should be to make this per-centage 15% soon and move it up steadily.

With almost two decades of my ex-perience in Kerala in entrepreneurship, I could surmise that big instant cre-ations inside Kerala are not possible whereas one can only follow the slow evolution of the state towards business (and that includes IT). That augurs well for the state’s miniscule IT billing potential. No acceleration would ever work for this highly politicized, litigating laity. Whereas we see outside the state huge business transformations, we have to accept our lack of fast growth for very many reasons, most of which cannot be set aside in a jiffy.

I think Kerala should concentrate on preparing high-quality manpower for new-generation industries and make them available globally, rather than trying to make them stay back within the state. If we hold them back, it would only be counterproductive for the population.

The state had gone vey much back-ward in making IT projects for better, faster and safer e-governance deliv-eries. The Akshaya project that every Government is tom-toming was the last of such initiatives and even that is on ICU mode for those entrepreneurs behind it. The innovation and creativ-ity of Kerala planners, bureaucrats

and technologists in its institutions in launching great IT initiatives for the betterment of its citizen has practically come to cease. The IT policy must look up at this lapse seriously and put ef-forts through its institutions to create, develop and establish robust IT initia-tives for delivery of services to its laity thereby improving the inclusivity of all its citizens.

Providing 5,00,000 jobs and en-abling 30,000 startups to come up by the end of 2020 is certainly a silver lin-ing in the policy but there is no road map for achieving the goal as men-tioned. E-waste is a great menace faced by all advanced countries. If our state is seriously embarking on its jour-ney to capture the number one posi-tion in IT, it is high time to ponder over the management of e-waste. Most of the advanced countries are yet to find a solution to recycling e-waste indig-enously. They are treating the Third World countries as junkyards for that purpose.

However, with all its shortcomings, the new IT policy is very altruistic, cov-ers all the wish lists and, therefore, if it comes into effect it will make Kerala a perfect IT state and IT business desti-nation of the country. However, know-ing the penchant of our Government (any Government, for that matter) for making announcements without being backed up by efficient implementation and upkeep, this could turn out to be yet another policy like those of yes-teryear. The only saving grace is that the officer who has made it or who is responsible for running it is a genuine, sincere person who really dreams of taking Kerala into the forefront. To that extent, we have hope!

(Mr Nair is an eminent ITentrepre-neur running Team Frontline and an analyst of repute)

S R Nair

Walk-to-work: new IT Policy initiative

JOb CulTuRE


15

Once Rajiv Gandhi created a flutter by saying that when the

Government spends one rupee, only 15 paise reaches the ultimate benefi-ciary for whom the money was intend-ed. Rajiv was not breaking news; the huge waste involved in Government expenditure was widely known. Rajiv only emphasized the gross wastage and sensationalized it a bit by quantify-ing the waste.

In this age of the welfare state, gov-ernments account for a major part of total expenditure in every economy. Skyrocketing public expenditure is adding to the debt burden of govern-ments, and in some cases like India, resulting in an unsustainable fiscal def-icit. In a developing country like India where the Government has taken up ambitious social expenditure commit-ments, efficiency in public expenditure assumes great significance. Presently, in India, subsidies account for 2.3% of GDP; this is clearly unsustainable.

Attempts to target subsidies and improve the efficiency in public ex-penditure did not yield any worthwhile results in the past. But now modern technology has presented a great op-portunity to drastically cut the wastes involved in government expenditure. The UID (unique identity card) project headed by Nandan Nilekeni has so far

issued 21 crore ‘aadhar’ cards to In-dian citizens. The figure is expected to touch 40 crore by 2014. Once aadhar becomes universal it has the potential to be a game changer as far as effi-ciency in public expenditure is con-cerned.

To start off, the Government has announced direct cash transfer to the beneficiaries in lieu of ration from January 1, 2013. The project will be implemented in 51 select districts in the country, will be extended to 18 states from April 2013 onwards and is planned to cover the entire country by April 2014. The pilot projects run by the Government—for kerosene in Rajasthan, for LPG in Mysore and for food grains in Jharkhand—have been reasonably successful.

A corrupt and wasteful systemThe present system of subsidies

involves a lot of waste and corruption. Take, for instance, the case of PDS food grains. The total food subsidy spent by the Government shot up from Rs 2,850 crore in 1991-92 to Rs 72,823 crore in 2011-12. But the bulk of this huge increase in subsidy has not gone to the people. The carrying cost of food grains—costs incurred for transporta-tion, storage and distribution—comes to around 20% of the total food sub-sidy bill. Apart from the carrying cost, there are wastes due to open storage. Moreover, there are large numbers of bogus BPL ration cards. The ration dealers divert food grains from the ra-tion shops and sell them in the black market. Similarly, there is huge cor-ruption in the distribution of kerosene. Kerosene illegally diverted from the ration shops is used for adulteration in diesel and petrol causing environmen-

tal problems. In fact there is a powerful kerosene mafia in certain states who have become a law unto themselves. In brief, the present PDS is a highly inefficient and corrupt system. The di-rect cash transfer system is a sincere attempt to streamline and reform the present system. Areas of concern

There are some areas of concern. If the new system is to be really effec-tive, aadhar has to cover the entire country; this will take some more time. Besides, since the subsidy is planned to be directly credited to the accounts of the beneficiaries, it is important that all beneficiaries should have bank ac-counts. There is a huge challenge of financial inclusion here. There are many districts, like Ernakulam in Kera-la, which have achieved 100% or near 100% financial inclusion. But there are many districts in the country populat-ed by tribals and similar marginalized sections of society where the bank-ing habit is an exception rather than the rule. The Government hopes to overcome this hurdle with the ‘banking correspondents model’ where agents from banks go to the people instead of people going to the banks.

Another issue in the direct cash transfer system is that initially the ben-eficiaries will have to buy the goods from the open market. The amount will be transferred to the accounts of the beneficiaries only after electronic verification of the actual purchase. This can pose some problems since the poor will find it difficult to raise the money for buying the goods from the open market. These and similar teeth-ing troubles can be expected in the ini-tial stages of the project.

Global experienceExperiments with direct cash trans-

fer have produced mixed results. The US introduced the food stamps scheme as early as 1939. Under this system food stamps were distributed to the poor enabling them to buy food from the open market. Later the Gov-ernment reimbursed the retailers. This system has been extended further to include items such as groceries to the poor. Now, the ETB system in the US which electronically transfers benefits to the targeted group is highly effi-cient.

A major success story in direct cash transfer in an emerging market is the Bolsa Familia system in Brazil. This is a conditional cash transfer system under which cash is transferred to the accounts of the beneficiaries on con-ditions such as compulsory enrolment of students in schools, their school attendance, vaccination records etc. Through the enforcement of these conditions, the system ensures the empowerment of the future generation while benefiting the present generation of poor people. This Brazilian model is regarded as a model worthy of emu-lation in developing countries. Similar experiments in countries like Nicara-gua and Conga have not been very successful.

India with her proven competence in computer technology can handle the teething troubles of this ambitious proj-ect. From the fiscal perspective, there is no doubt that this scheme will be a game changer capable of unleashing profound beneficial consequences.

(Dr Vijayakumar is Investment Strategist at Geojit BNP Paribas)

Direct cash transfer: a game changer in fiscal managementThe present system of subsidies involves a lot of waste

and corruption. For instance, under the present PDS the total food subsidy spent by the Government shot up

from Rs 2,850 crore in 1991-92 to Rs 72,823 crore in 2011-12. But the bulk of this huge increase in subsidy has not gone to the

people. Apart from the carrying cost, there are wastes due to open storage. Moreover, there are large numbers of bogus BPL ration cards. The ration dealers divert food grains

from the ration shops and sell them in the black market. Similarly, there is huge corruption in the distribution of kerosene.

In brief, PDS is a highly inefficient and corrupt system. The direct cash transfer system is a sincere attempt to

streamline and reform the present system.

Dr V K Vijayakumar

SubSIdIES


16



Gone are the bearish days as far as the Indian stock market

is concerned. These are the words of market analysts. The market move-ment in the northerly direction under-lines their comments. They attribute the reason to Prime Minister Manmo-han Singh’s determination to put re-forms back on track even at the risk of the UPA Ministry which he heads losing its majority. Experts forecast a buoyant market as the chances have brightened after the Manmohan team won the FDI vote in multi-brand retail. The confidence of the market will swell if other bills including the Finance Bill waiting for nod in both Houses of Par-liament will have a smooth sail. After a long wait certain IPOs are getting ready to tap the market. FIIs, the vol-ume investors in Indian bourses, are expected to be present enthusiasti-cally, their investment expected to be substantial.

Experts foresee the 30-share sensi-tive index Sensex to go above 21,000 and Nifty to reach 6,000 plus. Here are some market experts airing their views on the future of the market.

Mr Ignatius Kulirani, Regional Head-Kerala of Karvy Stock Broking Ltd, says Dr Manmohan Singh is try-ing to push economic reforms very fast and markets have started reacting very positively to this. The possibility of cor-

rections is always there and healthy corrections are always good for the markets. Sensex may touch 20,100 and Nifty may test 6,050 in this cur-

rent rally. FII i n ves tmen t exceeded Rs 1lakh crore recording the highest after two years. India’s GDP growth of 5.4% is still rated as one of the best

GDPs in the current global situation and this is the main reason for continu-ing FII inflow. Based on the new pro-capitalist economic measures there is every possibility of more FII inflow in the coming years.

Fiscal deficit is a major concern for all in the capital market, but the Government is able to make some money by sale of certain company shares through the open market. It is also planning some more similar mea-sures in the near future. This has cre-ated confidence in the markets and it is expected that fiscal deficit will end up within the budget estimates. We can’t say that the agricultural sector as a whole is showing good growth. Food price inflation is still a major concern. Because of the weak rupee, last quar-ter exports may show a better picture. Industry especially heavy engineering

is in bad shape. In some states power cuts are there for 8 to 10 hours in a day. The Government should focus more on power generation. Infrastruc-ture is a must and a more transparent policy for bidding coal blocks will boost the morale of corporate bodies.

With the renewed economic reform measures and better corporate gover-nance India`s big corporates with huge cash reserves may also come with new economically viable ventures. The rolling out of 4G in all states will also be a big game changer in the coming days. Direct credit of cash to the com-mon man`s bank account against his subsidy due is also a new challenging measure taken up by this Government. Introducing GST will also be a morale booster. Mr Kulirani expects that in the financial year 2013-14 Indian GDP may be at the 5.8%-6% level. The Q3 results of companies will be of a mixed pattern.

SBI is to get Rs 4,000 crore to im-prove its business, which will reflect in its share price. As the country`s pre-mier bank SBI has its own advantages and disadvantages. We can’t expect a profit-centric business approach from SBI when we compare it with its com-petitors like ICICI Bank or HDFC Bank, still the leading private banks. Auto, pharma, bank, FMCG and retail stocks can be considered for investments. The auto sector may outperform heavy engineering and power. The sugar sec-

tor may come out with a dismal show.

Compared to other asset classes equity is still at an advantage. Gold price has also come to the range of speculative level because of sharp price movements within a short time-frame.

After almost 20 years of above-average or normal monsoon, India is going to face this summer season with a lot of anxiety and most of our dams are already more than half-empty.

A promising positive development in the country is the cutting down of interest rates. Most of the efficient pri-vate banks have already reduced the FD interest rate to 8.75%, and all lead-ing banks are after retail investors of-fering them attractive home, car and

personal loans. Falling interest rates will help to bring back retail investors to the stock market. Controlling in-flation will help the RBI also to bring down interest rates. There are posi-

tive and negative factors always in our environment and which affect stock market investments too.

Mr V Raghavan, Regional Head-Kerala, Nirmal Bang Securities, says the much-hyped foreign direct invest-ment (FDI) in multi-brand retail has giv-en Manmohan Singh and team greater confidence and strength to implement more positive steps to leverage the economy. Moreover, the Government is contemplating taking measures to distribute cash subsidy to the eligible people through banks which will en-liven the mood of the people to support the Government in its future steps.

In addition to this, the record inflow of foreign investment, the highest after two years (over Rs 1 lakh crore), im-pressed the stock market as the trad-ers expect more inflow in the coming days, Mr Raghavan says.

Mr Raghavan asserts that India’s GDP growth of around 5.5% is better than that of many other countries, and the likely recovery of European coun-tries as well as the US will give our economy a better outlook.

The Q3 results of companies are likely to be impressive and this will raise hopes of a buoyant market in the

STOCk

Bearish days over ?

Aravindakshan

Ignatius Kulirani


17coming days. Now the market has im-proved and the index has reached a 52-week high. Many shares have got 30% and more return within two-three months. The coming months will show further improvement. The RBI proposal to cut the interest rate will have positive notes on the market. Inflation will re-main at a controllable level of 7.75%.

To a question how far the market will show the uptrend and whether there will be any chance of a correc-tion, Mr Raghavan says, “Of course there will be.” “We are expecting the next Union budget to be a populist one offering more sops to the common people which will have a negative im-pact on the market. That may force a

correction in the market by February.”

Which are the shares recommend-ed for investment? Recently there was a statement by Union Finance Minister P Chidambaram offering more liquidity amounting to Rs 15,000 crore for the banking system as the NPA is increas-ing. He has also announced Rs 4,000 crore to SBI, the largest bank. This will

have a compara-tive edge on the banking shares.

I n f o r m a t i o n technology scrips, one of the growth engines of the market, are not ex-pecting much take-aways in the third quarter. Infosys,

the number two among Indian IT com-panies, has already cut the growth rate in the last quarter and Cognizant has reduced its growth trajectory recently from 26% to 16%. TCS is doing fairly well compared with its counterparts. But in general, the outlook towards the IT sector may not be much commend-able.

Mr Aravindakshan of Acumen Capi-tal Market (India) Ltd points out that the passing of the FDI Bill is a significant step on the part of the UPA Govern-ment because there are likely chances of Manmohan’s economic policies to get life and blood. Moreover, the fore-cast on the index as envisaged by ex-perts at 21,000 points may be a lower figure as the market may rally above that level.

Commenting on the FII invest-ment surpassing Rs 1 lakh crore is a good sign and it has come around Rs 1,06,406 crore in December 2012 . So there are chances of more foreign in-flow into investment during the coming months. The policy stipulates that FDI is permitted in areas where there is a population of more than 10 lakh and the goods that come for deals in malls or markets would be 30% of the indig-enously produced or manufactured lot. This was formulated to encourage the indigenous production of goods and small-time farmers. Naturally we can expect a cohesive growth rate of the economy which will give an impetus to the market.

In the 2014 election either the BJP or the Congress will come into power. Both the parties are pro-reform and the chance of a third front is bleak. So the wide assumption of correction in the market during the pre-election period will be a mere speculation.

A notable feature of the Indian mar-ket is that it is the cheapest market in the world and a better place to do retail business. Stock prices are com-paratively low in which the common man can invest. Out of 1.3 billion In-dians merely 1% have accessibility to the stock market. So awareness is the need of the hour. At least 5% should come to the market. We have to edu-

cate the commoners about seeking the opinion of a sharebroker or a financial consultant before investing, whatever be the size of the investment.

According to the Rajiv Gandhi eq-uity scheme, an IT exemption of Rs 25,000 is allowed for an investment of Rs 50,000. This gives wide scope for small investors to enter the market. An-other notable area to invest in is the en-tertainment companies whose shares can have a quantum jump in the times ahead and growth may be expected in that sector.

The frequent increase in the oil prices is the major hurdle that impedes economic growth. It jacks up infla-tion, widens budget deficit and currency depreciation and inflation, now under control. Frequent scams are another lacuna which pulls down the economic graph that projects a grim profile of our economy that may draw out FIIs out of the market.

The shares that call for investment are infrastructure, power, auto, PSBs and pharma.

Mr Jerome Joseph, Regional Head-Kerala of Vertex Securities Ltd, is very optimistic about the market as the UPA Government won the FDI vote. Prime Minister Manmohan Singh and team can now adopt very aggressive reform measures to tone up the economy which will surely boost the market sen-timent.

He says that there is no possibility of a poll before the end of the term of the UPA-11 Government. And more recent-ly investment by FIIs crossed Rs 1 lakh crore stimulating the investors’ mood to enter the market enthusiastically and there prevails a bullish trend in the market.

These positive signs indi-cate that there is no need for an

immediate correction in the market and the market is rallying, Nifty reaching a level of 6,300 points in six months.

In the case of Sensex, it is noticed that the FIIs’ investment runs to an av-erage Rs 500 crore daily which works out to Rs 10,000 crore in 20 days of trading which may push up the Sensex to 21,000 points by six months and the investors have much hope in the 200 DMA (daily moving average) rally.

Moreover, the rating agency JP Morgan has upgraded India’s GDP at an appreciable level. The RBI’s next review meeting is to cut the interest rate which will retain the bullish trend of the market.

The bear may dominate the mar-ket unless the Government controls inflation and the price rise of essential commodities and the retailers opt to buy when there is a dip and control the selling spree when the market rallies. Moreover the market now depends on the attitude of the FIIs.

Experts forecast a buoyant market as the chances have brightened after the Manmohan team won

the FDI vote in multi-brand retail. The confidence of the market will swell if other bills including

the Finance Bill waiting for nod in both Houses of Parliament will have a smooth sail.

V Raghavan

Jerome Joseph


18


Air Kerala (AK) is the brain-child of Emerging Kerala

2012, engineered by Industries Minister P K Kunhalikutty. Possibly, it was the only product of Emerging Kerala, which had caught the imag-ination of NRI Malayalees from the Middle East, who had patronized this three-day show in large num-bers. Callousness and insensibili-ties of Delhi bureaucrats towards the simple travel needs of low-paid NRKs of the Gulf region have im-parted AK a great deal of social relevance. The recent hijack

drama enacted on a Kochi-bound Air India (AI) flight from Dubai and the hours of misery inflicted on some 200 AI passengers have fur-ther underlined the business sense and social relevance of the pro-posed AK.

There is plenty of loose talk, and there are also announcements, by Ministers and high-level bureau-crats of Kerala. But, how do we go about organizing the business of AK? This question needs to be examined and studied with the seri-ousness it deserves. There is a blind belief in Kerala that the orga-nizational m o d e l taken by

Cochin International Airport Ltd (CIAL) is the best or most suited for any Government-sponsored infra-structure project. And CIAL is often quoted as a good success story for the PPP (public-private partner-ship) route for infrastructure devel-opment.

Based on such popular be-lief, the Director Board of AK has been constituted with Chief Minis-ter Oommen Chandy as Chairman and V J Kurien of CIAL as Manag-ing Director. Four more Ministers—Kunhalikutty (Industries), K M Mani (Finance), K C Joseph (Information)

and K Babu (Excise)—and two businessmen, Yusuf Ali and ,

have also found a place on the eight-member board.

This board, represent-ing varied

public and private interests, has al-ready met and has decided to ask the consultants, Ernst & Young, for updating the detailed project report they had prepared in 2006.

The Kerala Government has sought speedy approval from the Union Government for launching AK, which would primarily cater to the needs of Keralites living in the Gulf region. AK has to seek ex-emption from rules that stipulates a minimum of five-year domestic experience and ownership of 20 aircraft for starting international op-erations. These are difficult or near-impossible conditions for a new pri-vate or joint-sector enterprise like AK whose promoters believe that this could be easily accomplished by exerting political pressure and mobilizing public opinion.

It is totally erroneous to anticipate a roaring success for Air Kerala (AK), similar to that of CIAL, simply because of its board composition and its so-called PPP character. Currently, airline business, especially international airline business, is highly volatile and even speculative. It is absurd to think of an AK, operating in competition with AI or any other established airlines. What we need is an AK that will work as a joint venture with or as a subsidiary of AI. With the sort of enthusiasm for AK at every level, and the large contingent of Kerala Ministers in Delhi, this could be easily accomplished.

Air Kerala needs wings

18 19

K Vijayachandran

AvIATION



19Kurien, Managing Director des-

ignate of AK, has said that the Ker-ala Government and public-sector undertakings will hold 26% share of the new company to be floated, and the remaining 74% will be al-lotted to the general public. The minimum lot size of shares for pub-lic issue will be of Rs 10,000 in val-ue, and according to Kurien, some 2,00,000 Keralites are expected to invest in AK. Incentives are being promised to NRK shareholders by way of concessional airfares, de-tails of which will be known, as the consultants finalize the project re-port. Government officials and their private collaborators are confident of mobiliz-ing the required capi-tal for financing their dream project. How-ever, there are wide-spread doubts about the viability of AK as a business enterprise.

K Roy Paul, former Secretary for Civil Aviation and AI Chairman, does not see AK as a feasible proposition. He had promoted Air India Express, focusing on the low-income NRK group of the Middle East. The proposal was to have an AI subsidiary and supporting ser-vices headquartered in Kochi and manned by staff who were keen to live and work in Kerala. Air In-dia Express was flagged off on April 29, 2005, with a maiden flight on the Thiruvananthapuram-Abu Dhabi route. But the euphoria over this was short-lived. The company was supposed to be a Kerala-spe-cific business entity; but as it got implemented, all these premises were violated, and the results were devastating. It was true that the concept was never implemented with any seriousness and in its true spirit. For this, Roy Paul squarely puts the blame on the so-called Mumbai lobby. He believes that this could be corrected, and Air In-dia Express could function as a vi-able ancillary of AI.

Obviously, AK cannot be launched and run as a successful business entity, merely by patrio-tism, enthusiasm or even clever-ness of Malayalees. There are several objective factors behind the premature demise of Air India Express, conceived by Roy Paul. Joining hands with AI and floating AK as its subsidiary or joint venture would make immense sense. It will remove the several negative fea-tures pointed out by Roy Paul, and even help to counter the so-called Mumbai lobby. Expanding and con-solidating business through joint ventures, subsidiaries and PPP is

now well-accepted policy and prac-tice of Central public-sector under-takings. These are being floated everywhere, even where they are not needed and even least desir-able.

A 50:50 or a 51:49 joint ven-ture of the Kerala Government and AI would enable Kerala patriotism to work on the decades-long civil aviation experience of AI. Such JVs could be floated by AI in coop-eration with any state or group of states if the situation in the region warrants it. Instead of pleading for

any special concession for itself, Kerala

could take the initiative for de-manding such policy shifts by the Cen-tral Govern-

ment. After all, for the first time

in the history of the republic, Kerala is rep-

resented by eight Ministers at the Centre.

Central public-sector units (CP-SUs) have rich experience in sever-al sectors of industry and business. Operating from “the commanding heights of the national economy”, they have been developing as technology generators for the na-tion for quite a few decades and

serving as depositories of techni-cal expertise. The Airport Authority of India (AAI) has developed, de-signed and constructed more than a hundred civilian airports, some of them even in foreign countries. When the Kerala Government decided to float CIAL for building Nedum-bassery international airport, AAI was there to support it with its expertise and experi-ence.

Even AI and the Housing Development Finance Corporation (HDFC) had helped CIAL with their technical expertise and finance. More than official pro-tocols and MOUs, Malayalee pa-triotism was at work in these deals. The political leadership had ac-tively supported this formal and in-formal cooperation between these CPSUs and CIAL. A high-quality international airport at minimal cost at Nedumbassery was the net re-sult of this excellent cooperation. In bringing out this cooperation, the Chief Executive and the Board of Directors of CIAL had played a key role.

While interpreting the CIAL suc-cess story, the impact of this co-operation between Central- and state-sector organizations is often

forgotten. The success is often er-roneously attributed to the so-called PPP model and the structure and composition of the Director Board. There were also other factors be-

hind the instant suc-cess of CIAL. With regard to the do-mestic sector, CIAL was only replacing and expanding an already existing air travel business at Kochi. And, with re-gard to international travel there was a large pent-up de-

mand, simply waiting to be shifted away from Mumbai.

It is totally erroneous to antici-pate a roaring success for AK, simi-lar to that of CIAL, simply because of its board composition and its so-called PPP character. Currently, airline business, especially inter-national airline business, is highly volatile and even speculative. It is absurd to think of an AK, operat-ing in competition with AI or any other established airlines. What we need is an AK that will work as a joint venture with or as a subsidiary of AI. With the sort of enthusiasm for AK at every level, and the large contingent of Kerala Ministers in Delhi, this could be easily accom-plished.

Air Kerala needs wings

18 19


20


Traditionally, Cochin port used to de-velop facilities to meet demands from

trade, ie importers and exporters. During the 1930s, when traffic was about to grow to reach a million tons a year, quayside berths were built at Mattancherry wharf. Until then, cargo used to be taken in lighters to and from ships anchored at outer sea.

During the 1970s when container ships arrived, ports in general were reluctant to spend huge amounts to meet their needs. Nor did the ports respond to offers of part-nership by shipping companies for equip-ping the ports for container handling. It was during those times that Colombo port ac-cepted offers of partnership to develop as a container port. As there was no container port in India during those times, it suited the shipping companies to turn Colombo into a

load centre for traffic originating from

or destined for Indian ports. That was how Colombo became a transshipment port. It was just a business opportunity for Colombo port.

By the end of the 1990s container ports were already operational at JNPT, Chen-nai, Cochin, Tuticorin, Mundra etc. Some of these ports allow discounted tariff for direct call ships that carry cargo direct to destina-tions because India is poised to become a global manufacturing-cum-logistic hub. By 2005 several new container terminals were added by ports in India.

It was during that year that Cochin port decided to join in partnership with DP World to develop the port as a container transship-ment port/load centre. The project envisaged building three new terminals in a phased manner at Vallarpadam area over a period extending up to 30 years. After turning the port’s container terminal—RGCT—as trans-shipment terminal from 2006 onwards, the private partner was to build and shift opera-tions to the new terminal at Vallarpadam by 2011. The estimated project cost to be borne

by the private partner for the new terminal at Vallarpadam is Rs 700 crore. Upfront public investment for deepening the chan-nel to 14.5 metres, basin dredging and rail/road connectivity to the project area, which had already been spent, is Rs 1,700 crore. Both parties have invested as aforesaid. But the core objective of turning Cochin port into a container transshipment hub has not yet been achieved.

WHAT WENT WRONG?

The basic flaw was that the project was touted as a nationally important project that justified public investment of Rs 1,700 crore. Global shipping conglomerates utilized ev-ery opportunity to propagate this concept. They have financial clout to shape public opinion by holding several seminars and promoting tendentious media reports. No

industrial tycoon would seek huge public investment merely because it would enrich his coffers. Public discourse is waylaid fo-cusing on huge benefits that would arise for others, viz trade and Cochin port. How a trader in JNPT, where most traffic in India is centered, would be able to cut his transport cost if transshipment were to be done at Co-chin port instead of at Colombo was never debated. That was how transshipment got accepted as a great development objective initially by Cochin port and now Vizhinjam port, another port in Kerala under the admin-istrative control of the State Government.

A container transshipment terminal is not like a local shopping mall, where local people are the customers of the mall. In a container transshipment terminal, the cus-tomers are global shipping conglomerates, which operate huge container ships. They buy the services of the transshipment termi-nal to minimize the operating costs of ships and to maximize profits. Indian exporters and importers derive no benefits from a con-tainer transshipment terminal. Their cargo shipments get delayed to reach the destina-

Container terminal take-off delay stretched into infinity?

A container transshipment terminal is not like a local shopping mall, where lo-cal people are the customers of the mall. In a container transshipment terminal, the customers are global shipping con-

glomerates, which operate huge con-tainer ships. They buy the services of the transshipment terminal to minimize the operating costs of ships and to maximize profits. Indian exporters and importers derive no benefits from a container trans-shipment terminal. Their cargo shipments get delayed to reach the destination port if transshipped on the way at transship-ment terminals. Local residents have to put up with the din and dust of trans-shipment terminals that work all day and night. In short, a container transshipment terminal has nothing to do with a coun-try’s development, especially for a large country such as India with a long coast-line. The proof of this is for all to see in the US, where hardly any transshipment takes place.

K V A Iyer

INfRASTRuCTuRE



21tion port if transshipped on the way to transshipment terminals. Local residents have to put up with the din and dust of transshipment ter-minals that work all day and night.

In short, a container transship-ment terminal has nothing to do with a country’s development, es-pecially for a large country such as India with a long coastline. The proof of this is for all to see in the US, where hardly any transship-ment takes place.

thE blamE GamE

The Cochin Port Trust had per-ceived that a strategic private part-ner was necessary to strike deals with shipping conglomerates to sell the service of the transshipment terminal. That was why DP World was chosen. Presently, shipping conglomerates are not in hurry to grab the opportunity at Cochin port because they have other options including their own container termi-nal at Colombo as well as in other ports in India. Therefore shipping conglomerates have started a bar-gaining game. As the first step, DP World got the Port Trust to drastical-ly cut port dues for mainline ships to compete with Colombo. Addition-ally, discounted tariff was applied to foreign feeder ships also. Foreign shipping interests bargained for and got the Government’s decision to relax cabotage restrictions to en-able foreign ships to carry goods between Vallarpadam terminal and other Indian ports. It is now evident that the private partner has not in-stalled an adequate security sys-tem for container scanning. While this reduction of tariff was being done solely by the Port Trust, the private partner at periodic intervals regularly increased tariff for cargo-related services.

PPP IN PoRTS

The game of private partnership in ports begins with bidders quoting

exorbitant revenue shares to the Port Trust to win the concession. After getting acceptance of the fi-nancial bid by the Port Trust, the successful bidder seeks several amendments to the draft licence agreement, based on which the financial bid was submitted. This vitiates the bidding process. After securing the licence and on sign-ing contracts incorporating several desired amendments, the licensee demands amendment to the Indi-an laws or relaxation of the law to maximize the profit of the licensee. Often, the licensee interferes with the functioning of the Port Trust claiming monopoly rights. There have been several court cases that delayed port projects while the li-censees took the claim of monopo-ly right to courts, where the claims invariably failed. At times, the li-censee arrogates certain items of revenue, which are unauthorized charges levied on exporters and importers.

Claims of huge amounts of pri-vate foreign investment brought into ports, if corroborated with rel-evant data from the Reserve Bank of India (RBI), would prove to be a figment of ingenuity. Data avail-able from public sources confirms that DP World financed the entire estimated project cost of Rs 700 crore for Cochin port’s container terminal almost entirely from the loan secured from Indian public fi-nancial institutions. Port projects by private partners fail to take off when they fail to secure loan finance.

This happened at Ennore port, where a consortium of companies from Britain and Spain was unable to secure loans from State Bank of India even after six months of se-curing licence to build a container terminal. Ennore port thereupon was said to have encashed a per-formance guarantee of Rs 14 crore and the consortium wrote off Rs 20 crore as loss. Likewise, a bidder

may fail to extract unjustified relax-ations and concessions from the Port Trust. This happened in JNPT, where Singapore port wanted ex-emption from payment of stamp duty for signing the contract. This situation, according to press re-ports, forced JNPT to cancel the licence and encash a performance guarantee of Rs 67 crore.

Way ahEaD

The port authorities rarely take any stringent action against licens-ees except in extreme cases as aforesaid. Normally licensees flout terms of contract with impunity. Ap-parently this is happening at Co-chin port.

In any discussion on Vallarpa-dam project the core objective of transshipment is never discussed. Instead various extraneous fac-tors come to the fore. Cochin port was handling about two lakh TEU a year before the terminal (RGCT) was entrusted to DP World in Janu-ary 2005. It was envisaged that the private partner would at least bring six lakh TEU of transshipment traf-

fic. With 33.3% revenue share, the port’s revenue would not be affect-ed if the private partner performed as envisaged.

When more traffic and mainline ships arrive, the cost of mainte-nance dredging of the deep chan-nel was envisaged to be met from port dues levied by the Port Trust

on ships. Similarly the cost of ba-sin dredging could be met from the berth hire levied on ships. As DP World failed to bring transshipment traffic and the failure has been continuing for the last 7 years the business plan did not succeed as envisaged.

If a party fails to perform, the licence needs to be terminated. This is the only way forward to save Cochin port from this predica-ment. Once this is done, the port’s resources can be put to optimum use.

(The writer is Vice-President, Water Transport Workers Federa-tion of India)



22


The late Paul Thaliath was one of the few from Kerala

on whom was conferred CA in 1949 when the Institute of Chartered Ac-countants of India came into exis-tence by virtue of an Act of Parlia-ment, The Chartered Accountants Act 1949. In 1962, Jacob Joseph, FCA, joined him to form a partnership un-der the name and style of Thaliath & Jacob, which was registered with the Comptroller and Auditor General of India, on May 1, 1962. On the demise

of Paul Thaliath, P A Felix joined the firm. K C Joseph Varghese, a former student of the firm, after qualifying in 1978 and practising independently, was admitted into the firm on January 1, 1988. Felix passed away in 1996 and Jacob Joseph in 2004.

In 2000, Ms Michelle Anil, grand-daughter of Felix who was ranked in the CA examination, was admitted as a partner. P D Mathew, FCA, after retiring from the Cochin Shipyard as

Director of Finance, joined the firm. New blood is coming into the firm shortly, to give the clientele better service.

Thaliath & Jacob, one of the old-est in Kerala, were central auditors to the then Bank Of Cochin, Catho-lic Syrian Bank, South Indian Bank, Federal Bank and Parur Central Bank. They have also been statutory auditors to almost all public sector undertakings in Kerala such as FACT,

TCC, FIT, TELK, United Electrical In-dustries, Kerala State Civil Supplies Corporation, Kerala State Construc-tion Corporation, United India Insur-ance Company Ltd, National Insur-ance Company Ltd, Cochin Shipyard etc. They had also been appointed auditors by the Archdioceses of Er-nakulam and Verapoly, the Diocese of Kottappuram and churches and religious and charitable institutions coming under them.

NEWS

US entrepreneur to set up startup school

Kerala will have a brush with the Silicon Valley culture with

Freeman Murray, a legendary entre-preneur, angel investor and mentor from the US, announcing in Kochi re-cently that he would set up a startup school for young entrepreneurs in col-laboration with Startup Village, India’s first telecom incubator.

Murray’s Startup School, the first of its kind in India, will come up at Startup Village in Kochi in partnership with the latter and Jaaga.in, a hub of digital cre-ativity in Bangalore supporting design-

ers, startups and digital freelancers of all types.

Addressing the media at Startup Village, Freeman said the school would enrol 100 students initially for a six-month course of which four months would be devoted to a residential class on Startup Village campus from which the brighter ones with better ideas and entrepreneurship skills would be se-lected for the final two-month course. Preference would be given to those

with better communication skills with a good command of English which, he said, was essential to be successful in this sector.

The Kerala Government, he said, was extending a lot of support to tech-nology companies to grow in the state. “This is a real opportunity in India”, he added.

Startup Village CEO Sijo Kuruvilla said the engineering colleges in the state had started leveraging the ad-vantages of the Kerala Chief Minister’s recent statement about the Govern-

ment’s new edu-cation policy, ex-tending various concessions to e n g i n e e r i n g students with entrepreneur-ship skills to en-courage them to set up their own ventures. “The results have be-gun to appear in the growing number of appli-cations reach-ing Startup Vil-lage. Fifteen to 20 students are applying every week,” he said.

“Startup School is a large-scale initiative to help young first-time en-trepreneurs in India launch successful Internet companies. It is going to be a full-time residential programme. It will also review online classes. Students can participate in it to improve their startup skills,” Murray, who has been working with technology startups for the past 15 years in India and the US, said.

The team of MBA students from

Sree Narayana Guruku-lam College of Engineering

(SNGCE), Kolenchery, represented by Arun Kurian, Avanish M R, Renjith Padmanabhan and Divya K Joy won the Third Best Overall Award at The Young Indians (Yi) National Innovation Run-Road 2 Ideas held from Novem-ber 1-4, 2012. The teams from Mudra Institute of Communications, Ahmeda-bad, won the first and second prizes.

SNGCE won two more awards—most popular team and best case study pre-sentation.

The Innovation Run passed through four states that have over the years demonstrated entrepreneurship and excellence. Twelve teams from various colleges across the country took part in this run wherein they got an opportu-nity to meet 12 innovators from Indore, Vadodara, Pune and Goa. Two teams from SNGCE and Toc H Institute of Science and Technology in Kochi had participated.

At Indore, the teams visited BIO GASIFIER, NVIS Technologies Pvt Ltd and AADHARSH PEN. In Vadodara, the participants met innovative farm-ers in Aries Agro, the Vadodara Traffic Regulation Trust, Police and RCBC, Sath Visarjan Rath and Godrej–Chotu Kool. In Pune they went to Eaton,

Cybage and SUZLON ONE EARTH GLOBAL VILLAGE and in Goa they in-teracted with innovators at the Incuba-tion Center and Azulejous Tiles.

The participants had to interview these innovators and other stake-holders based on which they had to prepare five-minute videos and slide-shows overnight and upload them on-line. The winners were selected based on the points gathered for the video and slideshows and the online polls which gathered popular opinion and

the opinions gathered from a select Yi next practices jury.

“The visits were very inspiring and it is amazing to see people who have risen from scratch and are now so suc-cessful. They are leading names in the country as well as the world. They inspire us to chase our dreams”, says Arun Kurian, Captain, team SNGCE.

“The whole idea about Road 2 Ideas is to enable young minds to explore and meet individuals who have dared to think out of the box, to introduce them to entrepreneurship and also to gauge the impact of the innovation to the community and industry. It was an action-packed, nonstop learning jour-ney celebrating the spirit of thinking differently and thinking big,” according to Ms Navita Mahajan, Chairperson, Road 2 Ideas, CII’s Young Indians.

SnGcE students shine at yi national innovation Run

Thaliath & Jacob in golden jubilee year

Freeman Murray addressing the media

PASSLINE Nov 30 - Dec 31, 2012 Nov 30 - Dec 31, 2012


23

“The State Government could not provide all facilities for in-

dustries on its own because the state is lacking resources like land. Hence, the projects the Government undertakes require private participation. Moreover, the Government is putting stress on a `vertical’ model of development be-cause of the shortage of Government land ,” Industries and IT Minister P K Kunhalikutty said while inaugurating the other day the Standard Design Modules (SDM) facility, set up by Inkel, at Angamaly.

“The SDM facility has been built in such a vertical configuration. This is the trend all over the world, and we must also follow it. Such facilities will be able to host units which will create a lot of jobs,” the Minister said.

``The Government will promote only eco-friendly projects in the state and won’t encourage polluting indus-tries. The Industries Department has also decided not to promote such proj-ects,” he said.

``Screening of the project propos-als presented at the Emerging Kerala meet is going on and the cleared list of the projects will be out by this month. The list will contain only those propos-als for projects which are non-polluting and those which do not harm our envi-ronment,” the Minister asserted.

Mr Kunhalikutty said there must be a larger political consensus on the in-

dustrial policy. “Even though Inkel was formed during the last ministry, we will give all support to the innovative ideas put forward by Inkel,” he said.

Mr Jose Thettayil, MLA, who pre-sided, complimented the Minister on following the industrial policy of the last Government. “There must be continu-ity in our policies and Mr Kunhalikutty is striving for that,” he said. Mr Thet-tayil lamented that controversies, and not industries, grew more in the state. This trend must be reversed. He also reminded those concerned about the bad state of the road leading from the NH side to the SDM.

SDM Angamaly provides 2,00,000 sq ft of space on five floors, with in-

dividual modules of 5,000 sq ft each. Entrepreneurs can lease or rent one or more of these 39 modules and use the modular facilities to suit their particu-

lar business. As a major infrastructure provider Inkel wants to take the hassle away from starting a business and make it even exciting.

SDM Angamaly’s facilities are ideal for non-polluting industries like

electronics, avionics, apparel, light engineering, printing and publishing, warehousing and logistics, IT/ITES, banking, financial and a host of other

service sector businesses and units.

SDM Angamaly is well connected by and is in close proximity to road, air and sea routes. Besides, it is next to already well-estab-lished industrial majors like TELK. Coming nearby is a Logistics Park too. With a view to the future, Inkel is also getting a second SDM complex done over 3,00,000 sq ft, which will be ready for allotment by January 2014.

Mr T Balakrishnan, Man-aging Director, Inkel, wel-comed the gathering. Mr C K Varghese, Chairman, Anga-

maly Municipality, Ms Ajitha Teacher, Councillor, Angamaly Mu-nicipality, Inkel Directors P Muhammed Ali, Varghese Kurien, C K Menon and Sidique Ahmed Haji Panatharayil and Executive Director N Sreedharan Nair also attended the function.

Kunhalikutty’s stress on vertical-model development

Keeping pace with the latest development from Microsoft,

the launch of Windows 8, on October 26, Geojit BNP Paribas announced the other day that ‘Flip Me’, its mobile trading application for Windows 8, was simultaneously launched. The applica-tion can be downloaded from the Win-dows Store.

‘Flip Me’ was the first mobile trading solution that offered clients the facility to place orders both on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). ‘Flip Me’ users who use Windows 8 will experience enhanced functionalities such as effi-cient navigation and user-friendly con-

tent management, especially multime-dia content, along with the look, feel and touch capabilities of Windows 8. Whether they are using a desktop or a mobile device, users are assured of the same functionalities.

‘Flip Me’ users can now obtain mul-tiple market watch views with real-time updates, configure and place orders for all cash and derivative segments of the stock exchanges and view the order book and trade book in an op-timum security environment. It also offers portfolio information with real-time updates and dynamic real-time charts. An offline order facility is also available through ‘Flip Me’, enabling investors to place orders outside mar-ket hours. While watching the market, customers can initiate and authen-ticate voice calls to the tele-trading centre of Geojit BNP Paribas.

Geojit launches mobile trading app for Windows 8

PASSLINE Nov 30 - Dec 31, 2012 Nov 30 - Dec 31, 2012


24


Kerala Tourism has bagged the prestigious CNBC AWAAZ

Travel Award for this year. The ‘Best Travel and Tourism State’ award was presented to it recently at a glittering function held recently at Srinagar in which Union Health and Family Affairs Minister Ghulam Nabi Azad, Union Minister of State for Tourism Chiran-jeevi Konidala and Jammu and Kash-mir Chief Minister Omar Abdullah par-

ticipated. Kerala Tourism Secretary Suman Billa received the award.

“It is an honour to receive this pres-tigious award. It is recognition of the combined efforts of the private and public sectors in the travel and tourism sectors of Kerala to maintain the state as the best destination for both domes-tic and foreign tourists,” Mr Billa said.

The awards citation said Kerala Tourism was adjudged the ‘Best Travel and Tourism State’ for constantly striv-ing to push the boundaries of excel-lence.

Kerala had won the ‘Most Preferred Destination’ prize at the CNBC AWAAZ Awards in 2010 besides bagging the ‘Best Tourism Board’ honour.

Delhi-Mumbai Industrial Corridor Development Corporation CEO and Managing Director Amitabh Kant and prominent Indian travel industry en-trepreneurs Vikram Madhok and Ajeet Bajaj were members of the CNBC AWAAZ Awards jury this year.

Tourism

Union Health and Family Affairs Minis-ter Ghulam Nabi Azad presenting the CNBC-AWAAZ award to Kerala Tour-ism Secretary Suman Billa in Srinagar. Union Minister of State for Tourism Chiranjeevi Konidala and Jammu and Kashmir Chief Minister Omar Abdullah aare also seen.

Kerala Tourism wins CNBC aWaaZ award

Kerala has flagged off an intensive na-

tional campaign to woo tour-ists from across the country to the forthcoming Grand Kerala Shopping Festival (GKSF), a spring-board event to catapult the state to the status of an international shopping destination.

The colourful campaign, which will travel to eight major cities in the run-up to the mega-fiesta, was flagged off from the Kerala House in New Delhi by Union Minister of Overseas Indian Affairs Vayalar Ravi the other day.

The campaign vehicle will have stopovers at Jaipur, Ahmedabad, Indore, Mumbai, Hyderabad, Chen-nai and Bangalore before culminat-

ing at Kannur in Kerala where the 48-day mega fiesta will get off on December 15.

The South Indian Bank-GKSF, already billed as the biggest fiesta of the kind in Asia, aims at trans-forming the entire Kerala into ‘one single shopping mall’ with high-voltage campaigns, promotions, tantalizing discounts, incentives from the Government and gifts and gold worth millions of rupees, co-inciding with the peak tourism and pilgrim season.

campaign to woo visitors to GKSf

Kerala Tourism has won the Conde Nast travel award for

putting India on the global travel map. The Excellence in Taking ‘Brand India’ Global Award, instituted this year, was recently presented to Kerala Tourism Director Rani George in New Delhi at-tended by the who’s who of the travel, tourism and hospitality industries.

The new award category intro-

duced by the prestigious international travel magazine in its travel awards recognizes the significant contribution by Kerala Tourism to the travel industry and its important efforts to put India on the global travel map.

Government of India Tourism Sec-

retary Parvez Dewan, Delhi-Mumbai Industrial Corridor Development Cor-poration CEO and Managing Director Amitabh Kant and the Ambassadors of Thailand, New Zealand and the Mal-dives were present at the ceremony. Jammu and Kashmir Tourism Minis-ter Nasir Aslam Wani was also pres-ent. Indian Hotels Company Managing Director and CEO Raymond Bickson, IndiGo President Aditya Ghosh, Singa-

pore Airlines General Manager (India) G M Toh, Thomas Cook India Managing Direc-tor Madhavan Menon, The Leela Palaces, Hotels and Resorts President Rajiv Kaul, The Oberoi Group Ex-ecutive Vice-President Kapil Chopra, writer William Dalrymple and senior media person-ality Vir Sanghvi at-tended.

Kerala Tourism Minister A P Anil Ku-

mar described the award as ‘big rec-ognition’ of the state’s sustained global campaign pitching God’s Own Coun-try as a ‘must-see’ destination in the world. Rani George said: “It is a great privilege for Kerala Tourism to be a sig-nificant part of the efforts to put ‘Brand India’ on the global map.”

Conde Nast Award

Kerala Tourism Director Rani George receiving the Conde Nast travel award in New Delhi .

The Kerala Tourism pavilion themed on the Western Ghats

was a huge draw at the World Travel Mart (WTM), the leading trade event for the global travel and tourism indus-try, held in London recently.

The theme of the Western Ghats, which is one of the world’s newest UNESCO World Heritage Sites, mes-merized visitors, reports say. The Kerala delegation to the WTM was led by Kerala Tourism Secretary Suman Billa. Sixteen co-exhibitors, including resorts, hoteliers and tour operators from the state, participated. “The Kera-la Tourism pavilion, which was spread over 120 square metres, earned praise from the visitors for its breathtaking beauty. We were humbled by the re-markable response from the visitors to

our state’s pavilion,” Mr Billa said.

The co-exhibitors from the state were Abad Hotels and Resorts, Car-noustie Beach Resort and Ayurveda Spa, Intersight Tours and Travels, Jayasree Travels and Tours, Joys Resorts and Hotels, Lake Palace Re-sort, Lakesong Resort, Pepper Tours, Quilon Beach Hotel, Ramada Resort, Spiceland Holidays, The Raviz, Thom-as Hotels and Resorts, Uday Samudra Leisure Beach Hotel and Spa and Va-sundhara Sarovar Premiere.

“Kerala’s calm countryside, pristine beaches and majestic hill stations are hugely popular among British tour-ists. For Kerala Tourism, the UK is the biggest market in the world,” Mr Billa said.

Kerala pavilion a huge draw at London travel fair


25

CSB registers higher profit

Thrissur-based Catholic Syrian Bank (CSB) posted 186.77% increase in profit during the first half of the financial year as compared to the correspond-ing period last year. Total business increased by 22.18%, deposits by 22.11%, advances by 22.28% and net interest income by 4.80%.

The bank’s capital adequacy ratio stands at 10.86%.

With its first-ever branch in Kerala having become oper-

ational in Kochi, DCB Bank is offering a wide array of attractive offers and products to the NRIs. Anand Sub-ramaniam, the bank’s NRI Business Head, told PASSLINE recently that Kerala is a state where every home has at least one member who is set-tled or working abroad. “This factor is what attracts us to Kerala,” he said.

DCB caters to the needs of NRIs across the globe especially in East Africa, South Africa and Nairobi in Ke-nya where a strong presence of Ker-alites exists. The bank is now trying to boost its base in the Middle East also. It operates in those countries by asso-ciating with other major banks.

According to Mr Anand, DCB offers all normal banking services like sav-ings account and current account with better facilities for NRIs. “We charge lower amounts compared with other banks in cases of minimum balances,” he said. “The bank can provide bet-ter personalized services than other banks. Customers normally have to take a token and form a queue at re-spective counters but in DCB they can just walk in, have a coffee with the manager while their needs are being processed and walk out happy without struggle,” Mr Anand said.

“As far as fixed deposits are con-cerned we have the best interest rates. We give 9.3% which is highly competi-tive compared with other banks,” he said.

For money remittance DCB has high-quality services, especially on-line services where NRIs can make transactions sitting at home through

their laptop even at midnight. DCB has a tie-up with ‘Remit 2 India’ where the customer needs only a one-time registration to be eligible for online transactions. There is swift wire trans-action option also.

Though DCB was only less than six months old in Kerala, it had a rich

legacy in India, said Mr Anand. Built on over 78 years of trust, tradition and togetherness, DCB was converted into a scheduled commercial bank on May 31, 1995, in the wake of India’s economic liberalization. It was the only co-operative bank, which successfully crossed over and thrived in the face of change.

The bank has a network of 82 state-of-the-art, customer-friendly and conveniently located branches across Maharashtra, Gujarat, Andhra Pradesh, Karnataka, Delhi/NCR, Ra-jasthan, Goa, Tamil Nadu, Haryana, West Bengal and the Union Territories of Daman and Diu and Dadra and Na-gar Haveli.

DCB has deep roots in India since its inception in the 1930s. Its promoter and promoter group, the Aga Khan Fund for Economic Development (AKFED) and Platinum Jubilee In-vestments Ltd, holds over 19% stake. AKFED is an international develop-ment enterprise. It is dedicated to pro-moting entrepreneurship and building economically sound companies.

DCB Bank welcomes NRKs with best services, products

Thrissur-based South Indian Bank (SIB) has introduced a new fixed de-posit scheme called SIB CARE which ensures a fixed monthly return for term deposits. For example, a senior person who deposits Rs 1 lakh at 9.25% inter-est for two years will get Rs 4,577 as equated monthly instalment from next month onwards.

If one deposits Rs 1 lakh plus with this, one is entitled to free accident insurance benefit to the tune of Rs 1 lakh. The benefit of the scheme is that

retired people investing a part of their income in this scheme can ensure a fixed monthly income for a long pe-riod.

The scheme will benefit students of professional courses, NRIs, farmers, senior citizens and retired personnel.

Those who set apart a part of their in-come for their parents can also be a part of this plan. Deposits ranging from Rs 25,000 to Rs 1 crore are accepted under the scheme. The period of the deposit is for two to 10 years. Nomina-tion facility is available.

Chief Minister Oommen Chandy launched the deposit scheme along with the opening of the bank’s new branch at Puthuppally the other day. Dr V A Joseph, bank MD and CEO, presided. Cine actor Mitra Kurian, Executive Director Abraham Tharian, Kottayam Zonal Head Francis Chacko and Grama Panchayat Member P R Sivarajan were present on the occa-sion.

SIB CARE for fixed monthly returnBank of India

chairperson & mD

Mrs V R Iyer has taken charge as Chairperson and Managing Director of Bank of India with effect from Novem-ber 5, 2012. She was Executive Direc-tor of Central Bank of India.

Appointments

Kerala Feeds MD

Dr Ani S Das has assumed office as Managing Director of Kerala Feeds Ltd, Thrissur. He had earlier served for eight years as Managing Direc-tor of Kerala Livestock Development Board.

Dr Das holds additional charge as Managing Director of Meat Products of India.

Mr K V Varkey (Varkey Patti-mattom) has been appointed

Managing Director of Hindustan Anti-biotics Limited, a Central Government enterprise, Pimpri, Pune, from Novem-ber 2, 2012, according to a Presiden-tial order from the Union Ministry of Chemicals and Fertilizers, Department of Pharmaceuticals, New Delhi.

A BSc Engg (Hons) and MTech (Industrial Management) from IIT Ma-dras, Mr Varkey was serving with Hin-dustan Organic Chemicals Limited, Ambalamugal, Kochi, as the Chief General Manager and Head of the Management Services and Computer Division before joining HAL, Pimpri. He has very rich experience in the in-dustrial management and computer science disciplines and also working experience in a high-level manage-ment team for more than 32 years in various Industries in Mumbai, Chennai and Kochi including public sector com-panies.

He has also served as National Joint Secretary of ECOMMET and as expert panel member of the Kerala State Encyclopaedic Publications.

Mr Varkey has authored eight books on information technology under the pen-name Varkey Pattimattom.

Varkey Pattimattom hal mD

Mr Varkey Pattimattom, for-mer General Manager of Hindustan Organic Ltd, has assumed charge as Man-aging Director of Hindustan Antibiotics Ltd.


26


with only 15%-20% penetration. This raises serious concern as it in-dicates that the health of a majority of our citizens is not protected.

This calls for immediate atten-tion because our country is at great risk with perhaps the highest num-ber of diseases and mishaps oc-curring here. According to latest medical reports, a new breed of 20 major diseases is causing trouble. Additionally, a new trend of lifestyle diseases has also raised its head owing to sedentary urban lifestyles and increased alcohol consump-tion and smoking. India has already got the unenviable reputation of be-ing the diabetes capital of the world with 61.3 million people affected by it. Even its South Asian neighbours like Bangladesh, Nepal, Afghani-stan and Sri Lanka have fewer dia-betics. Only Pakistan fares worse.

According to the Global Atlas on Cardiovascular Disease Preven-tion and Control 2011, the death rate due to ischemic heart disease (a condition which is characterized by reduced blood supply of the heart muscle) in India is 165.8 per 1,00,000. About 116.4 per 1,00,000 people in India die due to cerebro-vascular diseases.

The prices of medicines are also shooting up with the compa-nies establishing their monopoly in the market. Hospitals also charge exorbitant rates for diagnosis. It is against this background that the

fact that our people are not protected by health insur-ance becomes a shocking matter. The reasons are plenty and the blame must be shared by insurance companies as well as hospi-tals.

Health in-surance was introduced in India in 1987. But it is only by 2000 that private play-ers were able

to enter the market after liberalization. Health insurance is done by the TPA (third party administration), the third party

administrators for health insurance acting as a link between the insured and the insurance company. This TPA company typically files claims for the insured, and also certifies insurability for the insurance com-pany. That means that the TPA works for both the insured and the provider, though the continued em-ployment will typically depend on the satisfaction of the provider.

There are 30 TPA licensed com-panies and 4 stand-alone compa-nies. The three major stand-alone companies are Apollo, Max Bupa and Star Health and the fourth in the wings Religare Health Ins Co which has kickstarted its opera-tions in Mumbai

Though a bleeding portfolio, health insurance has created high-ly dissatisfied customers mainly due to mis-selling and unhealthy practices in the hospitals. Many customers are not paid their claim. The members of the hospital staff are not adequately trained to man-age cases of health insurance. There are no specific training pro-grammes for the insurance depart-ment in the hospitals. These things create a general aversion among the public to health insurance. The TPA fails to give quality services to the clients.

There is a tendency among cer-tain hospitals to exploit people’s lack of knowledge about health in-surance. They let the patients un-dergo all kinds of costly diagnostic methods like scanning to give a high amount in the bill. This is a tricky situation for the customers as some hospitals are not interested in health insurance because they lack knowledge while some others who are keen on the insurance do it only to exploit it for their own benefits.

The overall claim ratio for health insurance is 140%-160% and the highest claim ratio is for group mediclaim. But most of the claims happen in the metros and in ru-ral areas it is negligible. Thus the health insurance business is not a healthy proposition for an insur-ance company. It is a highly tapped sector in metros and customers in the metros use it wisely.

The discriminative face of health insurance shows its colour in the metros. Health insurance in hospi-tals in the metros is highly costly. There is no clear mention of costs in the policy and hospitals exploit this loophole. As a result a highly

sophisticated ‘A-class’ hospital in the metros and a ‘B-class’ hospital in the suburban or rural area would have different costs for it.

Though health insurance is dis-criminative in nature the diseases are not. A disease or mishap can easily break the barriers and reach out freely into the elite upper class, the middle class and the deprived lower class of society. So health in-surance should be modified in such a way as to cater to all the three classes giving them protection in the right way.

General awareness must be created among the public about the inevitability of health insurance and people must be taught that every family should be equipped with a health card and health in-surance. Organizations, insurance companies and hospitals should come forward to spread awareness about health insurance. It must also be taught in schools and the Government must take the initiative for this.

One of the daunting problems is that the insurance regulator at present does not have control over hospitals and there is lack of standardized hospitalization rates across the country. This lack of strict regulation is the prime reason for exploitation in the sector which forces the public to shy away from taking health cover. As of now the only solution is to end the discrimi-native tendency to classify hospi-tals clearly mentioning the costs.

And finally the customers should be educated about the possibilities of health insurance. They must be taught that their health should be insured while they have steady in-comes. There is no use in getting health insurance after you are diag-nosed with a disease.

The mindset of the masses has also to be changed for there can’t be any returns for health insurance, but it can cover the hospitalization costs without burning a hole in the pocket. Health insurance is in the news and the Government has ini-tiated various schemes like RSBY, CHIS etc to cater to different strata of the population. IRDA is in the process of implementing the rec-ommendations of the committee set up on health reforms to stream-line the sector and give a good deal to the customer and remove the la-cunae in the existing system

Health insurance has created highly dissat-

isfied customers mainly due to mis-selling and unhealthy practices in the hospitals. Many customers are not paid their claim. The members of the hospital staff are not ad-equately trained to manage cases of health insurance. There are no specific training programmes for the insur-ance department in the hos-pitals. These things create a general aversion among the public to health insurance. The TPA fails to give quality services to the clients.

Untapped market: a matter of serious concernUntapped market: a matter of serious concern

Health insurance in India has recorded 30% growth and is the second largest in volume, consti-tuting a major chunk of business of

the general insurance sector. It is also the fastest-growing segment. It is however alarming that health insurance still remains untapped

Viswanathan odatt

HEAlTH INSuRANCE


27

GHS Cochin Office:IMA House, Behind Kaloor Stadium, Palarivattom P.O,Cochin 682 025Email:[email protected], [email protected] Radhakrishnan: 097441 75818 , [email protected] Mathew: 9388158585 Email: [email protected]

AAPI ( American Association of Physicians of Indian Origin )600 Enterprise Drive, Suite 108, Oak Brook,IL 60523,USA. Phone (630) 9902277 Fax (630) 990 2281www.aapighsindia.org [email protected] www.aapiusa.org

International Convention Center,Le Meridien, Kochi, India. January 1-3,2013

G H S t o h e l p b r i n g b e s t h e a l t h c a r e s o l u t i o n sThe Global Healthcare Summit

(GHS) being conducted by the American Association of Physicians of Indian Origin (AAPI) in Kochi from Jan-uary 1-3, 2013 has drawn the attention of several India-based professional associations. They include the Indian Medical As-s o c i a t i o n (IMA), Kochi, the local or-ganizer of the event, Medical Council of India (MCI), Association of Surgeons of India (ASI), IPS, American Psychological Associa-tion (APA), Association of Physicians in India (API), Indian Cooperative Oncology Network (ICON) and IOEA, besides several international health-care industry partners, who are look-ing for opportunities at such events for greater collaboration on R&D and genuine philanthropic engagements. The attendance is expected to exceed 800-1,000 delegates from all over the world, especially from the UK and the US.

The American Association of Phy-sicians of Indian Origin (AAPI), which is conducting the summit, has been actively engaged in harnessing the power of the Indian diaspora and has successfully gained the support of

several leading healthcare experts and professional physicians’ associa-tions, including GAPIO and AKMG, to collaborate on the ground-breaking in-ternational healthcare summit, which is designed to bring the best, most efficient and cost-effective health-care solutions to the people of India, according to Mr Narendra Kumar, current President of AAPI, who also holds the record of being the second Keralite to be the President.

“Headquartered in Chicago, AAPI has projected member strength of 1 lakh and its active members would number more than 20,000. The objec-

tive of the summit is to bring the physi-cians of Indian origin under one roof. All of them would share their thoughts and ideas on how to pro-vide affordable healthcare to Indian cities,” said Mr Naren-dra Kumar.

The event will be based on knowledge sharing, not financial sharing, a mutual sharing of best practices among the experts from the US and those in India, says Mr Jayesh Shah, President-in-Waiting of AAPI. “We come together, discuss, come up with solutions to problems

and then pass them on to the Central Ministry for its perusal,” he says.

“The Government has the history of taking our recommendations on a serious note. We had earlier initiated a smoking ban campaign which the Government was willing to endorse at any cost,” Mr Narendra Kumar says. “India, especially Kerala state, is a place where we have a lot to contrib-ute,” he adds.

The escalating medicine prices, one of the grave problems which the state now faces, will be a hot topic of discussion at the summit. “There is a CEO forum at the summit in which CEOs of reputed pharmaceutical com-panies, medical device and technolo-gy companies, hospitals and teaching institutions from all over the world will participate. We will raise the problem at the forum,” says Mr Anwar Feroz Siddiqi, Adviser to AAPI. This is for the first time at a summit in Kochi a CEO forum is conducted and they will explore potential opportunities of col-laboration also, he says.

“This forum is by invitation only,” Mr Anwar reminds. They will also meet the ministers thereby opening doors to follow-up at the ministry level.

“We partner with the IMA and it has the power to follow up whatever rec-ommendations we make,” Mr Naren-dra Kumar says.

AAPI is aware of the ground reali-ties of healthcare in India and it has already initiated some measures to speed up the distribution of healthcare facilities across the country. A web-site has been developed which has a solid database providing accurate in-formation about what kind of service opportunities are currently available in India. Looking up this website doctors or other medical experts can volunteer

to provide their knowledge and services to the needy. This is an innovative and efficient way of catering to the common people free of cost, says Mr Narendra Ku-mar.

A major initiative that AAPI could take pride in is its charitable clinic. The Rajasthan Government, on AAPI’s recommendation, had started generic clinics in the state and the effort helped to boost the image of the Government as it was a major initiative to provide affordable healthcare to the common people. “There were no charitable clinics in Kochi but we had recently started one here. We are not running the clinics but we partially finance the clinic,” says Mr Anwar Feroz.

Dr Narendra Kumar

Dr Jayesh Shah

Anwar Feroz


28


``Whichever way we look at the Global Health Summit (GHS) it is an advantage to In-dia and Kerala too,” says Dr N Dinesh, Presi-

dent, IMA Cochin. GHS will focus on ensuring the best practices, devel-oping efficient and cost-effective solu-tions suitable for India and the oppor-tunity to exchange practical knowledge of doctors and medi-cal practitioners with worldwide authen-

city and eminent personalities in cardiology, maternal and child health, diabetes, oncology, surgery, mental health etc. It will help our doc-tors to clear their doubts and rectify their mis-takes, adds Dr Dinesh.

“We are also looking at the possibilities of sending our junior doctors to the US to ex-perience advanced clinical practices for two or three months in their respective medical branches. We have already discussed such things with our US counterparts.

If a person who took a medical degree from India wants to practise in the US, he or she must pass the ECFMG entrance examination before commencing the practice. The exam board authorities are also attending the sum-mit. It enables our doctors to learn and get the nitty-gritty of the exam directly from them.

The organizers have also invited 20 un-dergraduates from all the medical colleges to attend the summit free of cost. Invitations are being sent to the Principals of colleges. The CEO Forum is another milestone of the sum-mit, in which CEOs of major healthcare sectors including pharmaceutical, medical devices and technology, hospitals and teaching institutions from all over the world will be participating and exploring potential opportunities for collabora-tion with Indian companies.

Certain medical colleges and hospitals have already arranged for workshops and seminars for their doctors in their hospitals with the vis-iting experts. Moreover our tourism industry is catering wide scope for fine-tuning certain products related to medical tourism and other areas of tourism,” Dr Dinesh points out.

Summit advantage to India, Kerala: Dr Dinesh

A platform for interaction, exchange of views: Dr Kamath

The Global Healthcare Summit (GHS) will be a meeting platform for global, national as well as state policymak-

ers, administrators, bureaucrats and politicians to interact among themselves and review and exchange views on the various sec-tors of the medical science, according to Dr Sachidananda Ka-

math, the local Organizing Com-mittee Chairman of the meet.

All participants can share the issues relating to the health industry. The highlight of the meet is that the AMA President and officials from AHS will be attending the meet. This is the first time such a big meeting is taking place in Kerala, says Dr Kamath.

The medical policies, protocols and general practices vary from one country to another. They are also different in Indian states. Our policies are different from those of UP or MP, even from our neighbouring Tamil Nadu, for that matter. So this meeting will be a convergence of ideas and views of different stakeholders. “I don’t say that the Indian health sector is bad or substandard. We can improve a lot in this area through these types of meetings and other exercises. At present in our state 60%-70% of the healthcare sector is in the hands of the private sector and only 30% is in the Government sector.

But in advanced countries health is in the priority sector and governments are providing adequate importance to people’s health by implementing legislative measures and sufficient funds. Unless the attitude of the Government changes in toto, including towards practitioners, the dedication of the medical fraternity will not improve, Dr Kamath says.

Dr Sachidananda Kamath

Dr. N. Dinesh Dr N S D Raju

AAPI USA has been actively engaged in harnessing the power of the Indian diaspora and has the backing of several leading medical healthcare experts and professional physicians’ associations, including GAPIO and AKMG, to collaborate on a groundbreaking international health-care summit, which has been simply designed to bring the best, says Dr N S D Raju, Chairman, Local Organis-ing committee, GHS 2013

The summit will be based on knowledge-sharing, not financial sharing; a mutual sharing of best practices among the medical experts from the US and those in India.

One of the grave problems which the state now faces, the escalating price of medicines, will be a hot topic for discussion at the event. At present in our state 60%-70% of the healthcare sector is being handled by the private sector and merely 30% is by the Government sector, whereas in advanced countries health is in the priority sector and governments are providing adequate importance to the people’s health by implementing legislative measures and suf-ficient funds. Unless the attitude of the Government changes in toto, including towards practitioners, the dedication of the medical fraternity will not improve, says Dr Raju.

Summit will be based onknowledge-sharing: Dr Raju


29

cimaR marches ahead in infertility treatmentThe biggest desire in the world

is, perhaps, to have a child. However, not all are fortunate enough to be blessed with such an experience. At a time when infertility rates are on the rise in India, the need for effective treatment becomes all the more signifi-cant. Hospitals like CIMAR (Centre for Infertility Management and Assisted Reproduction) stand out in fulfilling this greatest desire ever—of conceiving and birthing a healthy baby.

CIMAR, the first IVF centre of northern Kerala, was launched in Sep-tember 1996 as a project of Edappal Hospitals Pvt Ltd. Dr K K Gopinathan’s years of experience, and a great team of doctors, gradually led CIMAR to new heights. Dr Gopinathan and his son, Dr Parasuram Gopinath, emphasize that efficient teamwork plays a vital role in the success story of CIMAR.

“Several doctors are involved in the entire process of infertility treatment. Together, we analyse each and every case in detail and make sure that we don’t miss out on anything,” says Dr Parasuram, Consultant and Scientific Director at CIMAR, Kochi. Dr Gopina-than also considers teamwork as an imperative. “I cannot do it all alone. I lead a team that consists of doctors

who are individual experts in their field; and that makes it a great

team”, says Dr Gopinathan.

Dr Gopinathan, Head of the Department of OBG

and Unit Director at CI-MAR, Edappal and

Kochi, began his career in Govern-

ment service. A f t e r

working at various Government hos-pitals for around 13 years, he started Edappal Hospitals as a 25-bedded hospital in 1990 at Edappal in Malap-puram district. In 1996, his dream of a centre exclusively for infertility treat-ment turned into a reality in the form of CIMAR hospital, and there was no turning back. Today, Edappal Hospi-tals have grown to a ‘multispeciality hospital’ with more than 300 beds hav-ing all specialities, the main speciality being the Department of Obstetrics & Gynaecology.

After a year of its launch, CIMAR was successful in producing the first ICSI (intra cytoplasmic sperm injec-tion) baby of Kerala and the first re-combinant FSH baby in India. For the first time in South India and the sec-ond time in the country, a healthy baby boy was born to a couple from Palak-kad on June 26, 2001, with the help of PGD, which was available only in very few countries around the world at that time. Another milestone in the history of CIMAR was the conception and de-livery of a baby by a 48-year-old, post-menopausal woman through the ICSI treatment using her husband’s sperm and donor oocyte. CIMAR has always made an effort to bring all the latest developments in the world in the field of infertility and in December 2010, it gave birth to the first IMSI baby of South India. It is the second centre in India to have the equipment for IMSI.

It has been three decades since Dr Gopinathan made an incredible mark in the infertility treatment industry and he rightly believes that expertise in any field comes with experience. “One can-not just start off with infertility treatment all of a sudden even after being a gy-

naecologist for several years. Profi-ciency in the area is really important and that is why the knowledge I have gathered over the years becomes prominent in the treatments we provide at CIMAR,” says Dr Gopinathan.

Its achievements and excellence have put CIMAR on the global map today. At present CIMAR has an ad-vanced genetic laboratory with com-puterized automated Karyotyping and FISH facilities, which have further enhanced the Fetal Medicine Depart-ment. Having done more than 35,000 laparoscopic surgeries including steril-ization, Dr Gopinathan is also the first laparoscopic surgeon of Kerala State Health Service. He has supervised over 1, 00,000 deliveries.

Dr Gopinathan believes that his job is not done even after a baby is born. “CIMAR hospital provides complete treatment and care to the patients, from the time of pregnancy to even months after delivery. From the time a patient approaches us, it becomes our responsibility to take good care of them and we make sure that the ba-by’s health is also well taken care of even after the delivery,” he says.

Today, doctors from different hospi-tals seek assistance from CIMAR hos-pital for infertility treatment; the team here is more than happy to help. Dr Gopinathan blames the rising infertility rate in the recent years on our current lifestyle. “Late marriages and busy life-style, where couples hardly spend any time together, is a matter of concern. We provide counselling for such cou-ples before heading into infertility treat-ment. We try our best to identify under-lying problems before proceeding with any treatment,” Dr Gopinathan says.

Though technology has evolved very much and treatments of global standards are now available, the ex-pense for infertility treatment has not changed much in the last 15 years. So hospitals like CIMAR are indeed a blessing for couples who wish to bear children.

With more and more milestones heading CIMAR’s way, Dr Gopinathan and team have taken upon themselves the responsibility of providing the best infertility treatment available. Dr Gopi-nathan has trained many others in the field and he believes that it would come in handy when he implements his plans of setting up branches of CIMAR at other cities in India.

(Dr Gopinathan is Unit Director, CIMAR Hospital)

Its achievements and excellence have put CIMAR on the global map today. At present CIMAR has an ad-vanced genetic labora-tory with computerized automated Karyotyp-ing and FISH facilities, which have further enhanced the Fetal Medicine Department. Having done more than 35,000 laparoscopic surgeries including sterilization, Dr Gopi-nathan is also the first laparoscopic surgeon of Kerala State Health Service. He has super-vised over 1, 00,000 deliveries.

Dr Gopinathan with his wife

PASSLINENov 30 - Dec 31, 2012


30

EI Lab Metropolis (endocrinology and immunology lab), now a part of the multinational chain of labs Metropolis, conceived as a speciality laboratory

for providing specialized test facilities for healthcare, endocrinology and immu-nology, was started in 1993 by Dr Ramesh Kumar, the highly experienced and enterprising biochemist with vision and determination for quality. His commitment

to quality has been proved and his lab has become a state-of-the-art referral diagnostic centre in Kerala. EI Lab is the first medical laboratory to go for NABL accreditation in the state and has joined India’s largest chain of the laboratory group, Metropolis.

A pioneer in setting up a speciality lab in the state in the field of clinical investigation, El Lab started with hor-mone testing and today undertakes a wide range of tests for hormone and cancer markers, auto immune antibodies, al-lergy, torch antibodies, hepatitis, viral markers, drug assays and PCR tests for HBV, HCV, TB and western blot tests for HIV. EI Lab follows internationally documented protocols for

radio immuno assay, chemi-luminescence immuno assay, micro-particle immuno assay and PCR methods for infectious diseases.

EI Lab Metropolis draws strength from its human resources and machines. Only qualified and competent personnel operate the test equipment, while the experts in the field do the reporting. All pieces of equipment and reagents used for the tests including the routine investigations are state-of-the-art computerized auto analysers with bidirectional interfacing with barcode. Currently the Kochi lab is the hub for Kerala labs and conducts 4,000 different investigations for a large number of samples received directly from patients, laboratories, hospitals and medical colleges in the entire state. Metropolis, Mumbai, is the hub for the whole country and other international labs.

Dr Ramesh says the best result is achieved only by the best combination of men, machines, reagents and quality control practices.

Dr Ramesh Kumar

3BHK

1400 Sqft. Rs. 26.33lakhs * 5 flats left

Ready to Occupy

El Lab test reports for better patient care

PASSLINEPASSLINE Nov 30 - Dec 31, 2012 Nov 30 - Dec 31, 2012 PASSLINENov 30 - Dec 31, 2012

31


The real estate sector in the state is now looking forward to

the future with great hope and enthusi-asm. The United Front Government is contemplating taking certain rejuvenat-ing steps by liberalizing regulations in-cluding FAR (floor area ratio) and other vexed issues which are pulling back the industry. The trauma of investors caused by the scams and fraudulent practices of certain players has almost ended. This, coupled with the econom-ic resurrection in the Arab and western countries, has given more strength to the revival of the sector.

The recent IT policy of the State Government allowing access to private infrastructure providers in Govern-ment-owned lands, easing of interest rates on fixed deposits and the volatil-ity in gold prices and the stock market are other factors favouring the growth of the sector. But one aspect is evi-dent: investors will never fall for posey schemes and supernatural offers. Cus-tomers will only go by the track record and brand value of the builders.

According to people in the industry circle, the boom in the sector in tier-II and III cities is yet to take place though the demand for dwellings is sure to go up. The number of young employed people in Kerala, especially in Kochi, Kerala’s biggest city and its com-mercial capital, who are drawing Rs 50,000 -Rs 75,000 a month as salaries is rising. Observers of the recent place-ments in our professional colleges will agree with this fact.

Again, major players in the field feel that when the Kochi Metro takes final shape there certainly will be a boom. They cite the case of the Smart City project, for example. When it was an-nounced, they point out, the real es-tate sector had witnessed a boom. But when it became known that the proj-ect was not going to happen or that it would be delayed indefinitely, the sector also went down, though in the meantime many players had reaped benefits. The Metro project, they think, will not have the fate of the Smart City.

Of course there are some factors which deter growth like increase in la-bour and material costs coupled with

indefinite delays in the completion of Government infrastructure projects. Complete mechanization and appli-cation of most modern methods in the industry are out of the question since these will jeopardize the cost advantages. Promoters should build their projects according to the cus-tomers’ requirements and demands rather than building structures and frantically selling them.

The comfort level of the people is rising day by day. Unless promoters catch up with the trend, they may not survive in the industry. One fac-tor that is slowing prospects of the industry is that there is no night life in Kerala. This makes people work-ing in the IT and other new-era seg-ments hesitant to invest in Kochi or any other places in Kerala.

On the other hand, metros like Bangalore and Mumbai have plac-es and joints to spend night life. But the industry is in an optimistic mode because of the opening of more malls, restaurants, hotels and mul-tiplexes to solve this problem.

R e a l t y e x p e c t s b e t t e r t i m e s a h e a dThe United Front Government is contemplating taking certain rejuvenating steps by liberal-izing regulations including FAR (floor area ratio) and other vexed issues which are pulling back the industry. The trauma of investors caused by the scams and fraudulent practices of certain players has almost ended. This, coupled with the economic resurrection in the Arab and western countries, has given more strength to the revival of the sector. The recent IT policy of the State Government allowing access to private infrastructure pro-viders in Government-owned lands, easing of interest rates on fixed deposits and the volatility in gold prices and the stock market are other factors favouring the growth of the sector.


32

Anta homes for relationshipsAnta Builders & Devel-

opers Pvt Ltd builds homes that have already cre-ated history in the concept of ultramodern living styles. Anta Builders strictly adheres to the international norms of qual-ity standards in construction. A specialized team in planning, design and construction brings an effective approach to the en-tire design and building process which has value-addition at ev-ery stage.

Anta Builders’ new project is a premium waterfront apart-ment complex named River Val-ley at Tripunithura. A cluster of 50 apartments, it is a true blend of luxury and sophisticated city

style with idyllic tranquillity.

Anta Builders’ other ongo-ing projects are Crown luxury apartments and Serenity pre-mium apartments. The com-pleted projects are Brooks Villa waterfront luxury villas, Kolenchery; Green Woods lux-ury villa, Muvattupuzha; Rose Dale Apartments, Trippunithu-ra; and infrastructure project Nila Campus (Kalamandalam) PG course and Government tourist project Sarovaram Biopark, Kozhikode. At Anta, Home Care takes care of all the clients after the sale. Mr. Mithun kuruvila is the manag-ing director of the company.

The RDS Group as a leader in the construction industry exudes the

virtues of quality and timely completion of projects, which have helped it earn the goodwill of its clientele and stakeholders. Started in 1968 and driven by its leaders with vision and a strong entrepreneur-ial spirit, the company has diversified into various fields of construction. Its housing wing was started in 1992 and has completed a num-ber of prestigious projects. A separate company named RDS Realties was formed in 2008 to manage its realties division.

Total satisfaction and value for money for its clients have been the concern of RDS since its ingress into the realty in-dustry in 1992 with its first apartment project, Paul Abrao Residency, in Kochi. Every project is treated as its signature creation and no client is too big or too small to merit RDS’ undivided attention and consequent interaction. The huge difference that RDS brings to its con-struction is that it does not depend on subcontractors to get its job done. This ensures superior quality delivered within the timeframe promised, every time. RDS projects are ideally located in prominent residential areas, which only go to en-hance the ambience.

RDS’ motto, “In pursuit of perfec-tion…”, says it all. RDS understands that while perfection is hard to attain in any domain, it strives to achieve the best pos-sible. The company’s apartments offer the following unique advantages:

Aesthetics for elegant and quality liv-ing, Natural lighting and ventilation that penetrate and infuse every nook and cor-ner in the house, A healthy environment and surroundings that promote green liv-

ing to help us play our part in sustaining our Mother Earth, Effortless access to ser-vices and facilities for easy maintenance, Incomparable quality that is ensured by construction via its parent company,

Meeting of all deadlines in a timely fashion because of maximum mechanization of the work involved.

RDS is one housing con-struction company which believes that meeting the rigorous demands of its cli-ents and creating long-term relationship is the biggest inspiration for it. The clients’ words of appreciation have been its best publicity and

unique selling point. Its vision is to pro-vide ‘value for money’ for its clients by benchmarking the best practices and the highest levels of quality control. It does not take the mantle of being pioneer in the construction industry lightly. Its par-ent company with its vast experience takes upon itself the onus of assuring and en-suring the latest technology, superior quality and on-time delivery as part and parcel of every project it undertakes. For this, it does not depend on subcontractors. All this, RDS believes, builds up its rapport with its clients to the extent where the concept of brand loyalty comes in. “As a result, we have repeat cli-ents and many who come to us through referrals,” says its Director, Col (rtd) John K Manavalan.

RDS’ commitment to its end product clearly signi-fies that it believes quality is more important than quanti-

ty. Therefore, it makes it a point to take up only a specific number of realty projects at a time, upon which its top manage-ment can stamp its personal and profes-sional imprint.

Its Directors consist of professional engineers and builders with decades of experience under their belt. Its senior technocrats have continued to be with it since the inception of its realty business. This emphatically proves the dedication of its core team to its business.

All completed projects of RDS are well appreciated by the owners and still stand testimony to their quality and elegance.

‘RDS Rhythm’, located on Palarivat-tom-Kakkanad main road midway be-tween the city and info park, close to all the city conveniences, is its most recently completed project. Constructed on an elevated ground, this magnificent 14-storeyed building has been well appreci-ated by the owners as well as the visi-tors. The amenities like swimming pool,

health club, indoor games and party ar-eas provided on the top floor have been a hit which the proud owners are utilizing to the hilt.

‘RDS Aura’, the ongoing project, is its latest apartment complex coming up on K P Vallon Road, Kadavanthara. ‘Aura’ is designed for a serene lifestyle in the heart of the city. The location is close to shopping arcades, places of worship, in-door stadium, hospitals and, above all, overlooks Bhavan’sVidya Mandir. The complex will have 46 3BHK apartments of 2100 sq ft each. The amenities provided on the first floor can match those in any similar complex. The construction is likely to be completed by the end of 2014.

Its upcoming apartment projects at Elamakkara, near Punekkal temple and Vidya Nagar, near Panampilly Nagar, are planned to be launched during early next year.

The address of RDS’ office is: RDS Realties Ltd, Shihab Thangal Road, Panampilly Nagar, Kochi 682036. Ph: (0484)4078900 (100 line). Email: [email protected] www.rdsrealties.in

RDS—builder who embodies individualism

John K Manavalan.


33

All people always dream of own-ing a home. And if that home

brings status and style to the dwellers their dream is more than what they dreamt of. For such people homes built by Uni Homes are the right ones. With over a decade’s steadfast experience in the construction field Uni Homes, promoted by United Realtors, has suc-cessfully completed a number of pres-

tigious projects in and around Kochi.

The latest among them is Uni Residenz located

in the heart of Kochi city in an affluent residential area at Judges Avenue, Ka-loor, with luxurious amenities like swim-ming pool, home theatre and health club plus other hi-tech facilities pres-ent-day residents crave for. The loca-tion itself gives residents easy access to transportation, the upcoming metro rail, supermarkets, hotels, hospitals, colleges, schools and various public and private establishments. Uni Resi-denz has 2/3/4-bedroom apartments in G+11 floors and luxurious penthouse and personal balcony which makes way for waking up to happy mornings

and harmonious living for children, adults and seniors alike.

Uni Midtown is an ongoing project of Uni Homes at Aluva. Just as its name denotes, Uni Midtown adorns the very heart of the town. It is an apart-ment complex elegant-ly built in G+12 floors, and offers the best ambience for a happy and harmonious living. Uni Midtown consists of 33 three-bedroom apartments. All mod-ern facilities like swim-ming pool and health club are incorporated in this project. Uni Mid-town’s uniqueness lies in its location which offers easy access to all avenues of life. It is located just 200 metres from the Na-tional Highway and 20 metres from the main

road. The unique design of each apartment is guaranteed to make you feel at home.

The company’s accomplishment in this field is due to its strong policy of strictly following its commitments to using quality materials supplied direct from the factory, adhering to the best construction practices, innovative designs, choice of ex-cellent locations and using a very skilled and experienced workforce for the timely completion of its proj-ects.

Uni Homes’ other projects are River Heights and Uni Square in Kochi. River Heights with 58 flats provides a distinguished status for the owners. It has everything that human beings long for in life. Uni Homes is proud to claim that it has an array of happy and satisfied customers who will remain stead-fast friends for ever. Uni Homes is managed by a team of profes-sionals who have combined their business ethics and other essential skills in the construction sector.

Educational qualification, knowl-

edge and experience make one a professional and work perfectly. Both these qualities mingle in the promot-ers of Uni Homes, managed by its two Managing Partners, Mr M A Rafeeq and Mr L Murugan. Mr Murugan and Mr Rafeeq are basically Chartered Ac-countants by profession. Mr Rafeeq’s father is an Advocate and was also a Government contractor. Mr Murugan hails from a business family. Mr Ra-feeq and Mr Murugan have been to-gether since their school days in Aluva. Mr C V Jayalal who is also a Partner in Uni Homes has various other busi-ness interests and is also a Director of the company which manufactures the famous Aqua Tech Water Tanks

Uni Homes brings style and status in living

CHAITHANYAGRANITE & MARBLE

Ph: 0484-2342792, Mob: 9447769971 to 74Bypass, Edapally, Cochin-682 024

e-mail: [email protected] web: www.chaithanyagraniteandmarble.com

Products:Granite, Marble, Natural Stones, Vitrified Tiles, Unicorn

Designer Tiles, Wooden Floor, Tiles, Adhesive Products, Sanitaryware, Kitchen Appliances

l murugan

C V Jayalal

m a Rafeeq


34

Established in 1993, Noel Villas and Apart-ments is the pioneer in green building in

Kerala. Providing eco-friendly projects conform-ing to the green concept that is rapidly catching on in the building industry, Noel has become one of the most acknowledged and credible builders in Kochi.

Noel aims at high standards of quality in de-sign and architecture and in the use of the lat-est building technology. It works on the philoso-phy of integrity, reliabil-ity and impeccable ser-vice to customers. Noel offers you a green living space where you will be calmed by the harmony of urban refinement and suburban style.

As part of this vision of creating quality life, its latest projects like Noel Serenia and Noel Greenature promise to be a green community designed for contemporary living in natural setting—a modern lifestyle in a haven of peace and tranquillity. Noel Greenature is the combi-

nation of a sky-villa apart-ment at Kakkanad within 750 metres from the Civil Station. The project is de-signed with 2 FAR, provid-ing more space.

Greenature is being constructed as a green building according to IGBC

specifications. The residents of the building can enjoy improved energy efficien-cy, increased water saving, toxin-free ma-terials, negative environmental impact and im-proved asset value and mar-ketability.

“Noel initi-ated the green

living concept for the first time ever in Kerala by in-troducing Greeanture villa

apartments. This green ini-tiative is aimed at fulfilling Noel’s social and corporate responsibility in a meticu-lous manner,” say Mr John Thomas, Managing Part-ner, and Ms Geetha John, Executive Partner. Both are engineering graduates with over 25 years’ experience in the building industry.

With an uncompromis-ing passion for quality, Noel has re-scripted the dynam-ics of the builder-customer relationship by making the aspiring client an ac-tive participant in the art of housemaking. Unrelenting commitment to providing immaculate designs and unique projects has taken Noel a notch higher. Noel Casa Theera, Noel Ecotat, Noel Serenia, Noel Geer-nature ,Noel Arcadia and Noel Focus are Noel’s ma-jor ongoing projects

Noel— the green building pioneer

noel villas & apartments’ manag-ing Partner John Thomas and Execu-tive partner Geetha John receiving the Gold certificate award of indian Green building council (iGbc) for the project noel Greenature from mr Jam-shyd Godrej, chairman, iGbc, during the iGbc congress held at hyderabad the other day. noel Greenature is the first residential apartment project and fourth in India to receive such an hon-our.


35

Nest Infratech is the realty and infrastruc-ture division of the multinational

billion-dollar Nest Group conglomer-ate. Established in 1991, the group has today become a multifaceted information technology company with headquarters in Chantilly, Virginia, and offices in Europe, Japan, India, the Middle East and Australia.

It was after setting benchmarks in all the ar-eas it touched that it en-tered the realty sector with the launch of Nest Infrat-ech. Nest Infratech offers exclusive living spaces at planned locations across India. It is powered by the dynamic character and vi-sion of its directors, Dr Javad Hassan, Chairman; Jehangir, Managing Direc-tor; F M Shameir Marickar, Director and CEO, Nest; and Althaf Jehangir, Ex-ecutive Director, Nest Group.

Nest Infratech is pioneering the concept of integrated townships in the name and style of its projects, ’The World’. These world-class in-

tegrated townships comprise villas and apart-ments, starting from Rs 20 lakh. The inter-

national model of inclusive development with Mediterranean and English styles

and contemporary and tra-ditional Kerala Nalukettu villas is its unique feature. Presently ‘The World’ con-cept is being launched in Aluva and Thalassery and will soon be replicated in all major cities of India.

The Electronics City coming up at Kalamassery is among Nest Infratech’s projects. The first special economic zone in the pri-vate sector in Kerala, it is a Rs 2,500-core state- of-the-art project with two mil-lion sq ft of notified space for electronic hardware manufacturing. Another project, ‘Orchid Park’, will be launched in 2013. This

superluxury apartment complex is in the heart of Kottayam town at Kalathippady, and ‘Electro Ville’, the latest project, is a luxury apartment that takes shape at Electronics City, Kalamassery, which is one of Kochi’s most elite residential neighbourhoods

Nest Infratech brings you ‘The world’

Leo

Burn

ett D

KO

HLE

R 11

1949

3

Like usTo know more about Vibrant Collection,

please contact Richa @ +91-124-4319745, 9.30 am - 6.30 pm, Monday to Friday.

Size 260x185 mm

Introducing the Kohler Vibrant® collection.The result of a revolutionary finishing process, this collection isscratch and tarnish resistant, and comes with a shine that lasts a lifetime.So, when are you going to pick your new masterpiece?

Available in Moderne® Polished Gold, Moderne® Brushed Gold and French Gold.

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masterpieces.

Opp.QRS,NH By Pass Road, Near Oberon Mall,Cochin-24. Cochin - 682024 Kerala

Contact Person: Midhun MathewMobile: 9895120711 | Email: [email protected]

Chaithanya Paints Pvt Ltd started paint manufac-turing when multinational brands were dominat-

ing this sector. Chaithanya, however, came to the fore-front of the industry within a short span of time with its quality paints like Royal Duke Premium, Duke Pride Exterior Emulsion, Captain Duke Premium, In-door Duke Interior Emulsion, Duromax Acrylic Distemper and other 24 paint products. Chaithanya has a long tra-dition of serving its clients with quality products. With a rich legacy and ex-perience in paint production for more than two decades the promoters of Chaithanya possess a vision for colour

and quality which is infused into the paints they manufac-ture. This increases the demand and trust for its paints in the market.

Mr L R Potti, Managing Director of Chaithanya Paints, says the reason for their success in the industry is the slo-gan `The products with quality mark can only exist in the future’ which has smoothened the way of its success.

Mr Potti says the greatest asset of every venture is its loyal and experienced workforce. It doesn’t make any dif-ference with whatever the product. A company is as good as the people it keeps. If you honour and serve the people who work for you they will honour and serve you.

Chaithanya’s quality vision is approved and appreci-ated by all. Its getting the ISO Certification 9001-2008, the Consumer Protection Award 2009 and Best Customer Service Award are testimony to this

Chaithanya Paints for rich colours

L R Potti

Javad hassan Jehangir

Shameir marickarAlthaf Jehangir


36

Owning a house is a dream. The dream is fulfilled if that house provides status, style and satisfaction. These

triple virtues are assembled in Trinity homes. The Kochi-based builders’ group, Trinity Builders and Developers, successfully functioning from 2005, is a real estate developer of repute in Kerala. The company has presented and completed several

presti-

gious real estate projects of innovative and meticulously planned residential enclaves with world-class premium life-styles.

The company ensures the concept of community living in all their projects by maintaining a legacy of long and outstand-ing experience in the field of property development enriched by its promoters.

Trinity has provided afford-able dwelling spaces with imag-inative and spacious layouts at prime locations in Greater Kochi and the proposed Kochi Metropolitan City areas.

Its latest project is Trin-ity Neptune, a ground+23-floor structure with 180 units of three-BHK apartments with all modern amenities at Chittethu-kara, Kakkanad, which has been launched.

The company having its corporate office Trinity House at Edapally, Kochi, is guided by its dedicated team of promot-ers—Mr C J Mathew, a former Income Tax Commissioner, as its Chairman, Mr Roy Joseph, Managing Director, and Mr M J Louiz, Director (Marketing).

The current and ongoing projects include Trinity Jupiter, a G+23-floor structure having 180 units of three-BHK apart-ments located at Kakkanad near Infopark and Rajagiri Col-

Trinity—symbol of world-class possessionlege within a distance of just 200 metres off Airport- Seaport Road, which has just been completed and is in the process of being handed over.

The project Trinity Mercury, also G+23 floors, located in the same spot at Kak-kanad, having 268 units of simplex- and duplex-type two-bedroom flats, is fast pro-gressing and is to be handed over in June, 2013. These projects at Kakkanad are meant to cater to a large chunk of the IT and IT investment crowd. Trinity Garden, a superluxury villa project at Aluva, is very close to the river Periyar. Out of a total of 43 villas in this project, work on 26 has been completed. A few have already been handed over and others are in the process of being handed over. The work on the re-maining 17villas is in various stages.

The projects completed and handed over by the company include Trinity Castle, Trinity Crest, Trinity Coral and Trinity Crown, all located at Edapally; Trinity High Grove, located

near Model Engineering College, Thrikkakara; and Trinity Periyar Sands at Aluva on the banks of the Periyar

c J mathew

Roy Joseph

mJ louiz


37yasoram for quality, affordable homes

With more than a quarter cen-tury of proud history behind it,

Yasoram Construction Co started with a noble, yet highly productive, dream to provide quality housing to the general public at affordable prices. A R S Vadh-

yar, the mastermind behind the venture, has traversed a long way, both as a pioneer-ing businessman and a visionary. His entre-preneurial skills have been marked by his determination to fight against odds and to bring in path-breaking

ideas. Highly innovative projects like Sky City are proof of his penchant for blazing a trail. Vadhyar is also famous for intro-ducing the concept of terrace farming and gardening in India.

Breaking the per-ceived notion about a builder, Vadhyar has forayed into activities that might bring posi-tive changes in society. The extent of his social activities has cut across class and creed.

Vilayil Apartments, Aluva; Valluvaser-ry Enclave, Eranakulam; Haridas Apart-ment, Chottanikkara; Praseeda Apart-ments, Gandhinagar, Kadavanthra; and Lakshmi Apartment, Kochi; are the major ongoing projects of Yasoram.

Yasoram has so far completed The-jus Apartment, Indradhanus, Jala-darsini, Pancharatna Apartments, Victoria,Sivadas Towers, Triveni, Gos-reepuram, Indraprastha, Himagiri, Shan-thivan Apartments, Diamond Towers and Sreyas Apartment

ARS Vadhyar

Kalpaka—committed to clients

m v Sunith

Committed to excellence since 2000, Kalpaka is a globally recognized builder, which has been en-

joying an unrivalled track record of consistent growth ever since. Incorporated under the leadership of Mr M V Sunith, Kalpaka Builders places great reliance on quality, using only the finest materials and craftsmen to create homes that are

widely lauded as benchmarks. Kalpaka homes are located at the best and immac-ulate locations in and around Kochi.

Kalpaka has a qualified, efficient and dedicated crew behind its success led by Mr Sunith, Managing Director. “At Kalpa-ka, the relationship with the clients does not end with the structure of a house. We offer the clients an array of services so es-sential to every homeowner. This is just to reiterate the commitment to the clients,”

says the MD who is an expert in the realty field with more than 25 years of experience.

Kalpaka Rangoli is a new offer-ing in residential apartments near the International Stadium, Kaloor. It has all the requisite necessities and

comforts to make living a pleasant experience for the whole family.

Kalpaka Lakeside Villa Project, Kalpaka Florence Apart-ments, Kalpaka Virndavan and Kalpaka Castle are the on-going projects of Kalpaka Builders. ISO certification and membership of CREDAI, Kerala Chamber of Commerce and Industry (KCCI) and Kerala Management Association (KMA) authenticate the credibility of Kalpaka Builders.

you may buy granite and marble from anywhere, from any dealers, but the quality, durability and price may

differ. only when you buy from chaithanya Granite and marble will you realize what benefit you had missed in your previous dealings. chaithanya Granite and marble is a fami-ly-run enterprise floated by a family and its friends and rela-

tives on a shoe-string budget under the proprietorship of mr E m abdul Salam. Chaithanya is really an offshoot of a mo-saic factory owned by mr abdul Salam at Vytilla Bypass, Kochi.

chaithanya mainly deals in Unicorn designer tiles. Indian and imported mar-ble is available with Chaithanya, includ-ing vitrified tiles, ceramic tiles, sanitary ware and artificial marble, all in whole-

sale and retail. Even now mr Salam does not order his inven-tories but directly buys them by bargaining so that he can pass on a part of the benefits of bargaining to his customers. After making an imprint in the granite, marble and sanitary ware business Chaithanya is making its foray into the con-struction field.

mr Salam believes education and social activities help one a lot to shine in business. he is an alumnus of farooq College, Kozhikode; past President of the Rotary Club and a former president of thrikkakara Residents association. his son, Shifas, a graduate in engineering, is associating with his father’s business.

Fathima is Salam’s wife. Besides Shifas they have two childrem, Suhile and Farhan.

Chaithanya Granite: a family business

E m abdul Salam


38

Established in 1996, Tubes & Tubings is an ISO 9001-2000-

certified proprietorship company. Srijit V, a great visionary and pioneering businessman from a middle-class fam-ily, is the brains behind Tubes & Tub-ings.

A BE and an MBA, Srijit spent a few months as a sales representative of Onida, manufacturer of electronic products. It was after the real estate boom Kerala witnessed during the ear-ly and middle 1990s that Srijit started the PVC channels and fittings manu-facturing factory at Perumbavoor, near Kochi, with a capital of Rs 23 lakh. “I had to face many difficulties in the ini-tial period. My brother-in-law Suresh, Managing Director of Shaktiman PVC Pipes, helped me a lot to start the business. In fact it was his valuable suggestions and sagely advice that inspired me to venture into the field,” says Srijit.

Tubes &Tubings received the ISO 9001-2000 certification in 2004 from Moody International Certification Lim-ited under UKAS accreditation, which is one of the prestigious accreditation

boards worldwide. In that year Srijit shifted his office to Kochi.

With its brand ‘konseal’, Tubes & Tubings has carved a well-deserved niche for itself in the market for high-quality PVC conduits and fittings, PVC channels and PVC tiling trims, and the

present turnover is Rs 9 crore. The manufacture of high-voltage ducting PVC products and doubling of the turn-over along with the company’s expan-sion are Srijit’s future plans.

Srijith is also a member of the di-rector board of Millennium Rubber Technologies Pvt Limited, promoted by a team of engineering professionals with a common professional/educa-tional lineage, viz Cochin University of Science & Technology (CUSAT).

The company was formed in 2000 with a business plan to manufacture rubber and other polymer-based prod-ucts, including speciality products for high-technology applications. Noby Joseph is the Managing Director of Millennium Rubber Technologies. The company currently has a wide range of

Tubes & Tubings: making a mark in PVC conduits and fittings

activities, like manufacture and supply of chemical-resistant rubber moulds

for designer tile and interlock manufacturing factories.

Kristal Group, Bangalore, Cochin Port Trust, Skyline Build-ers, Cochin Naval Base, CPWD, Government of India PWD, Gov-ernment of Kerala Central Ex-cise and Customs Co-Operative Housing Society Kochi, Tech-nopark Thiruvananthapuram, Amrita Institute of Medical Sci-ence Kochi and BSNL are some of the major clients of Tubes & Tubings.

Deepa is Srijit’s wife. They have two children—Nanda

Kisore and Navaneeth Krishna

Srijit V


39

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40 PASSLINE Nov 30 - Dec 31, 2012 Rn 65561/94 Reg. no. Kl/EKm/116/2009-2011

Printed and Edited by Varghese Paul for Keethara Publications Pvt Ltd. 6802, Convent Road, Kochi-35 Tel 3043572 Email:[email protected] and Printed at Ayodhya Printers Pvt Ltd., Cochin-26 Design by Unnikrishnan

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