Deal at last minute

In fact,both Sagar and Jasleen,extol the benefits of comparing prices.With so many shopping portals up and running successfully,a wise way to wriggle out of a sticky situation is to double check the price of your gift online.Incidentally,the same dress that may cost more on a store can be had at almost half the price online.
However,cautions Champ,while that is all appealing,buying online,including gadgets isnt a safe all proposition.So stick to the ones that you have used earlier.Do a proper research on their delivery and post-sale activity and then buy to be on a safer side.
This is the reason,adds the online shopper,why donation and gift cards are such a big pull.They,adds Sagar,take the entire onus of choosing a gift for someone.And although fixing a certain amount could be equally stressful,it is always a safer bet,and much appreciated.
And in case you are buying gifts then,says Champ,Choose the COD (cash on delivery) option.This while will rein the urge to spend more physical money has that controlling effect it also means that you can double check the gift before the actual process of gifting.
Look for bargain.One of the advantages of late shopping,says Sagar,is that often you get to crack a deal as the purchase is often in bulk.And there is a good chance of you getting a little extra,after all the store has to make all its selling in a stipulated time.Tip: Usually pick a standard design of the store its likely to fetch you are better bargain than something new.
And while doing so,beware or pressure sales tactics.Says Champ,Store representative and sales people are bound to hound you with innovative offer,dont fall for the temptation.Remember,if its too good to the ear,its probably not that good a bargain. For instance,adds Sagar,when a sales representative tells you that the deal is only available if you buy it right now,you probably should ask to speak to a manger to hold the price.If they believe in their product they should want you to feel good about your purchase and not buy it out of fear of losing a special price.
Last not the least,says Champ,Try DIY.They not only are a smarter way of gifting,but buying them turns out to be happily economical,and outrageously satisfying.
And remember,insist the experts,shop with cash,it limits overspending and impulsive hoarding.

Salient Features of the Companies Bill 2011

The Companies Bill, 2011, which was passed by the Lok Sabha yesterday, on its enactment will allow the country to have a modern legislation for growth and regulation of corporate sector in India. The existing statute for regulation of companies in the country, viz. the Companies Act, 1956 had been under consideration for quite long for comprehensive revision in view of the changing economic and commercial environment nationally as well as internationally. In view of various reformatory and contemporary provisions proposed in the Companies Bill, 2011, together with omission of existing unwanted and obsolete compliance requirements, the companies in the country will be able to comply with the requirements of the proposed Companies Act in a better and more effective manner.

The Salient features of the Companies Bill 2011 are as follows:

1. (Amendment in Clause 135): In the Section on Corporate Social Responsibility (Section135), which is being introduced as a statutory provision for the first time, the words ‘make every endeavour to’ have been omitted from its Sub-clause (5). So that the first para of Sub-clause (5) of Clause 135 now reads as follows: “The Board of every company referred to in sub-section (1), shall ensure that the company spends in every financial year, at least two per cent of the average net profits of the company made during the three immediately preceding financial years, in pursuance of its Corporate Social Responsibility Policy.”

Such clause is also amended to provide that the company shall give preference to local areas where it operates, for spending amount earmarked for Corporate Social Responsibility (CSR) activities. The approach to ‘implement or cite reasons for non implementation’ retained.

2. (Amendment in Clause 36): To help in curbing a major source of corporate delinquency, Clause 36 (c) amended, to also include punishment for falsely inducing a person to enter into any agreement with bank or financial institution, with a view to obtaining credit facilities.

3. (Amendment in Clause 143): Provisions relating to audit of Government Companies by Comptroller and Auditor General of India (C&AG) modified to enable C&AG to perform such audit more effectively.

4. (Amendment in Clause 186): Clause 186 amended to provide that the rate of interest on intercorporate loans will be the prevailing rate of interest on dated Government Securities.

5. (Amendment in Clause 144): Provisions relating to restrictions on non audit services modified to provide that such restrictions shall not apply to associate companies and further to provide for transitional period for complying with such provisions.

6. (Amendment in Clause 203): Provisions relating to separation of office of Chairman and Managing Director (MD) modified to allow, in certain cases, a class of companies having multiple business and separate divisional MDs to appoint same person as chairman as well as MD.

7. (Amendments in Clause 147 and 245): Provisions relating to extent of criminal liability of auditors – particularly in case of partners of an audit firm – reviewed to bring clarity. Further, to ensure that the liability in respect of damages paid by auditor, as per the order of the Court, (in case of conviction under Clause 147) is promptly used for payment to affected parties including tax authorities, Central Government has been empowered to specify any statutory body/authority for such purpose.

8. (Amendment in Clause 141): The limit in respect of maximum number of companies in which a person may be appointed as auditor has been proposed as twenty companies.

9. (Amendment in Clause 139): Appointment of auditors for five years shall be subject to ratification by members at every Annual General Meeting.

10. (Amendment in Clause 139): Provisions relating to voluntary rotation of auditing partner (in case of an audit firm) modified to provide that members may rotate the partner ‘at such interval as may be resolved by members’ instead of ‘every year’ proposed in the clause earlier.

11. (Amendment in Clause 2): ‘Whole-time director’ has been included in the definition of the term ‘key managerial personnel’.

12. (Amendment in Clause 42): The term ‘private placement’ has been defined to bring clarity.

13. (Amendment in Clause 61): Approval of the Tribunal shall be required for consolidation and division of share capital only if the voting percentage of shareholders changes consequent on such consolidation.

14. (Amendment in Clause 152): Clarification included in the Bill to provide that ‘Independent Directors’ shall be excluded for the purpose of computing ‘one third of retiring Directors’. This would bring harmonisation between provisions of Clause 149(12) and rotational norms provided in Clause 152.

15. (Amendment in Clause 470): Provisions in respect of removal of difficulty modified to provide that the power to remove difficulties may be exercised by the Central Government up to ‘five years’ (after enactment of the legislation) instead of earlier up to ‘three years’. This is considered necessary to avoid serious hardship and dislocation since many provisions of the Bill involve transition from pre-existing arrangements to new systems.

Now, one person can start a company

Passage of the Companies Bill in Parliament will pave the way for a new concept of ‘one person’ company’ (OPC). Under the Companies Act, 1956, it required at least two people to form a company. The new concept will provide an opportunity to Indian entrepreneurs to enter the corporate world without even adding a family member to the venture, which they, at times, do just for the sake of a second name.

“This will bring the unorganised sector of proprietorship into the organised version of a private limited company. The organised version of OPC will open the avenues for more favourable banking facilities, particularly loans to such proprietors,” says PavaKumar Vijay, managing director of Corporate Professionals, a corporate financial advisory firm. “Proprietors always have unlimited liability. If such a proprietor does business through an OPC, then liability of the member is limited. This will open all options for Indian entrepreneurs, with pros and cons, and leave it in the hands of such promoters to decide the best options. It will help many foreign companies, which just need to appoint nominees for the sake of a minimum two members, when they form a wholly-owned subsidiary (in India),” Vijay adds.

Various small and medium enterprises, doing business as sole proprietors, might enter into the corporate domain. The concept would boost the flow of foreign funds into India, as the requirement for a nominee shareholder would be done away with. However, the mandatory clause that a resident indian director should be on the board could be a bottleneck, experts say.

An OPC can be formed by subscribing the name of a person to the memorandum and complying with the requirements of the Act in respect of registration. As regards the name of an OPC, the Act provides that the words “one person company” shall be mentioned in brackets below the name of such a company, wherever its name is printed, affixed or engraved.

The law comes with provisions that cover various situations arising in such a new format.

For example, any business, which is required to be transacted at an annual general meeting or any other general meeting of a company by means of an ordinary or special resolution, shall be done in the case of an OPC by passing a resolution, which should be communicated by the member to the company and entered in the minutes book required to be maintained under law.

It also provides that the memorandum of an OPC shall indicate the name another person as nominee, with his prior written consent in the prescribed form, who shall, in the event of the subscriber‘s death, become the member of the company, and the written consent of such person shall also be filed with the registrar at the time of incorporation along with its memorandum and articles.

In countries like the US, and many countries of Europe, Singapore, etc the entrepreneurs have options to decide the constitution of company as per their need and the option of an OPC is available to them. The concept of OPC is prevalent in many countries and notably in China.

Experts feel the key challenge for such a company will be to ensure that supporting legislation also recognise such a company as an entity and not just an extension of a sole proprietorship.

Source – Business Standard

Go Native firming up India plans

Go Native, the London-headquartered serviced apartment operator, is looking at expanding its brand in the Indian market to cash in on the growing demand for long-stay accommodation from its clientele in Europe, Middle East and India.
Guy Nixon (pictured), founder and CEO, Go Native, who was recently in India for client meeting, told DNA Money, “We would love to explore opportunities to expand out brand in India. We would be keen to meet property owners who would like to work with the Go Native franchise.”
The company has a network of 25,000 serviced apartments, a large part of which is branded and operated by Go Native in London and Edinburgh.
It also works with operators across the UK, Europe and the Middle East catering to clients’ need for housing in these regions.
Elaborating the company’s business model, Nixon said most of properties in the network are on 10-15 year management contract. “We brand and furnish the buildings and run them a bit like hotels but they are all apartments,” he said.
On the Indian market, he said, “We have been housing Indian people in the UK for over 10 years now. We have learnt a lot about the Indian market in that timeframe and have good understanding of their needs for housing. Their primary requirements are good quality accommodation, value for money, sensible pricing, good transport connectivity, preference to live within a community and close proximity to the workplace,” he said.
Go Native operates three-, four-, and five-star buildings and pricing depends on how long people are staying. In comparison to hotels, the rates at fully equipped serviced apartments are
20-30% cheaper while offering a lot more space.
While the duration of stay varies from company to company, Indian business travellers generally use Go Native apartments from 7-14 nights on the lower side going up to 1-6 months or more when coming on knowledge transfer and long-term projects.
“Banking industry forms large part of clientele from Mumbai while it is technology sector from Bangalore, Hyderabad and Chennai. It is a fairly mixed one in terms of companies from New Delhi,” said Nixon.

‘New NPAs don’t warrant higher provisioning’

With banks in a firefighting mode as far as bad loans or non-performing assets (NPAs) are concerned, regulatory norms require them to set aside a higher provisioning. But interestingly enough, Andhra Bank’s provisioning coverage ratio (PCR) is on the way down. B A Prabhakar, chairman and managing director of state-owned Andhra Bank, clears the air in an interview with Parnika Sokhi and Megha Mandavia. Edited excerpts:

Andhra Bank’s PCR has fallen to 53.15% at the end of second quarter from 61.69% last year. Why has the provisioning been lowered despite a rise in NPAs?
The PCR is a function of the NPA portfolio and the regulatory guidelines that are in place for making provisions to various categories of NPAs. Today, our NPAs are Rs 3,013 crore. Fifty percent of these are not even one year old. So, there is no need to build in such high provisions for an NPA that is new. The PCR will increase as the NPAs become older as they move from sub-standard to doubtful and from doubtful to loss assets. The new norms on providing for restructured loans will need an additional provisioning of Rs 30 crore in our case. About Rs 500 crore of loans may get restructured in Q3.

How is the bank dealing with rising NPAs?
If it’s a problem arising out of business environment, hand-holding is essential. Restructuring is the answer to the business which is affected because of the slowdown, but potential is very much there. This I am generally referring to large accounts. I think the problem is not very serious in small accounts. That is why we have been able to make substantial recovery in these accounts and avoid slippages. We have strengthened the recovery department by deploying more work force at zones and branches.

How do you see credit growth panning for the rest of the year?
So far, we have seen credit growth of 15-15.5% and I think we may end the year with 16% growth. Today, we are not getting new projects. It is not that banks have become conservative and credit growth is not happening. The industry is not making any new investments.

On the deposit front, the share of low-cost deposits has reduced. How do you plan to bring down the dependency on high-cost deposits?
We have opened new branches to see that the Current Accounts Savings Accounts (CASA) deposits grow in absolute terms. I’m sure that once financial inclusion picks up, the CASA accretion will improve in the medium term. In the past 2-3 years, credit has grown faster than deposits and particularly CASA deposits have distorted CASA growth. But we don’t see credit growth beyond 16-17%. Once credit growth moderates, I see a possibility to improve the CASA growth. With electronic transfer in place, there is no need for businesses to maintain high current account balances. They will not grow the way we have seen in the past. Our bulk deposits should come down from 27% to 20% by March 2013. Total deposit growth will be about 14% by then.

Where do you see the net interest margins (NIMs) by March 2013?
We are at around 3.15%, I think we will be able to maintain it at 3-3.1% with cost of deposits coming down. There is a bit of pressure on NIMs because of the increase in NPAs. Today, we are funding all those NPAs with deposits which means it is not earning any income.

Arvind Lifestyle scouting for kids wear brands

Arvind Lifestyle & Brands, a subsidiary of textile firm Arvind Ltd, is scouting for kids wear brands to build on the five international acquisitions it made in the men and women wear segment this year.

“We have a couple of kids brands in our portfolio and are looking at expanding the segment now,” said J Suresh, managing director and CEO, Arvind Lifestyle, a major player in apparel and retail segment.

In line with the strategy, the company plans to extend Elle, the women wear brand, to the kids segment by March.

The company acquired Elle along with Nautica, Debenhams, Next and Billabong this year.

It has also started strengthening its existing kid’s portfolio as it looks to open standalone stores for its US Polo kids brands.

According to estimates, the kids wear segment is about `10,000 crore.

In the value retail space, after shedding the discounted tag from Megamart stores, the company has been able to improve margins by up to 5% in the past three months.

Meanwhile, the company is also sharpening its focus on international markets, which as of now contribute only 5-6% to its sales.

“We are aggressively marketing our home-grown brands such as Flying Machine and Arrow and plan to launch Izod brand in the Middle East very soon,” he said.

The company, which is likely to post a turnover of about `1,400-1,500 crore this fiscal, is aiming to touch `5,000 crore in sales by 2015 through both organic and inorganic routes.

The company, which contributes 27% to Arvind Ltd’s sales, is targeting to open 100-150 stores across formats

Caprese collection is also available on www.capresebags.com

International handbag brand, Caprese makes its debut in India

The latest entrant in the Indian market is the international fashion brand Caprese, offering a wide range of elegant and fashionable ladies handbags. Inspired from the Isle of Capri, a small island in the Campania region of Italy; Caprese handbags are made with a distinctly modern design language. Embracing a holistic concept, the sculptural aesthetics of the creations focuses on avant-garde shapes and precise cuts. They promise to bring a whole new fashion sense to a mass premium segment through high-end fashion imagery, differentiated designs and a very stylish Masstige offering. Caprese has been launched with a wide variety of stylised handbags for women catering to different occasions and usage. The colours, designs and silhouette are chosen keeping in mind the fashion forecasts and the tastes of the Indian woman, and the brand is launching around 50 styles as part of its Autumn Winter ’12 collection, which will be available at premium lifestyle stores like Lifestyle, Central, Pantaloons,VIP Lounges and leading ladies handbag MBO’s. The handbags will also be sold in over 100 cities across 400 outlets. Imported and marketed in India exclusively by VIP Industries Ltd., Caprese is available at a price point of 2,000 onwards. Spearheaded by Radhika Piramal, Managing Director, VIP Industries Ltd. Caprese has been rolled out post extensive test marketing, across India. Explaining the idea behind getting into handbags, Piramal said, “The branded handbag industry in India is at a very nascent stage, and there is clear absence of a big brand with pan-India presence. With our companies strengths in branding, retailing and distribution we will be able to bring the best of Caprese to the Indian consumers across India and grow the branded part of the category far faster.”
Caprese can be purchased online on www .capresebags .com, www .buytravelbags .com, www .flipkart .com, www .myntra .com, www.Jabong .com and many other leading portals. More information about Caprese collection is also available on www .capresebags .com and www .facebook .com/capresebags

The model is carrying Jane Hobo by Caprese, 3,299

Esther Tote Large Coral 3,299

Birdy Tote Medium Black 2,699

Rossini Tote Medium Vintage Blue
2,999

Cara Hobo Medium Turquoise Green 2,899

Jane Satchel Small Brown 2,899

Katie Tote Medium Blue 1,899

Mia Hobo Small Brown 1,699

The model is carrying a Birdy Tote by Caprese,
2,899

Coco Clutch Small Red 1,799

Some of us are inherently allergic to finance jargon. Is there any hope for us? One writer finds out

how to understand it

Some of us are inherently allergic to finance jargon. Is there any hope for us? One writer finds out

MADAM, WHERE is your Form 16?” The nerdy-looking accounts guy at the office was looking at me impatiently. All I could respond was, “What on earth is that?” with eyes bigger than a surprised raccoon. He looked appalled. “Don’t you file your tax returns?” I could see him trying to hide a smirk, but the corners of his lips gave him away. My ignorance of the finance world had given me away again. I was the laughing stock of the department.

That was three years ago. Today, I’m still no smarter about money – mostly because, as a 20-something journalist living on rent in Mumbai, I have none. Obviously, my boss thinks this makes great fodder for a story – so I’m dispatched to meet financial experts and hope their advice makes sense to a Zara-wearing, bistro-loving, party-hopping spender. It’s a hell of a ride.

BABY STEPS
I meet Siddesh Damble, my father’s friend’s chartered accountant, a bespectacled old man hidden behind racks of paperwork. “I only have 10 minutes,” he says, looking grim – so much for the patient approach. “The first thing you need to do is withdraw money from your salary account because it is getting stale there.” I ask why, and he produces a smirk that is now all too familiar. “Because money in your salary account barely appreciates. Play with it a little – fix it, invest it, and grow it.” I nod like a bobble head but I’m still clueless so I ask him to elaborate. Damble grumbles but complies: “The safest thing for girls in your income bracket [by which he means bottom-rung and always broke] to do is open a fixed deposit account with your mother. Your money has the potential to grow at say eight per cent. Plus, since it’s fixed for a certain number of years, it’s just like saving,” he says. And roping in a parent means you won’t cash out in a hurry.
Just as it’s starting to make sense, Damble throws in this whopper: “Invest your cash for gold. So when you sell it later, you will definitely make more money than what you invested.”

Great, so to make money I need to buy gold, for which I need money, which I don’t have. Arrgh! Why don’t Zara skirts appreciate the same way? I’d be so rich!

INFORMATION OVERLOAD
Clearly I need more help, so I meet Gyanender Singh, a former army officer and financial analyst. This time, things get even more complicated. Singh gets to the point in five minutes. “First claim your HRA and therefore claim a deduction on it. If you’re self-employed and do not have HRA, you can still claim deductions under Section 80GG,” he says. “Better still, if you are staying with your parents, pay them rent and avail tax deductions. That way the money stays in the house and you save on tax.” So, wait. I can pay my parents rent, use my House Rent Allowance to reduce my taxes, and charm my folks into letting me keep the rent money too? Why has nobody told me this before?
Singh also advises me to declare my losses on a tax return to save more tax in the future. “Just make sure that you set off your losses against profits in the current year. Suppose you sell your real estate property for R20 lakh. That means you will pay R2 lakh in tax. Now, if you’ve made a loss of R4 lakh in stocks, you set this loss against your profit and pay tax on R6 lakh. That way you save a cool
R80,000.” He’s lost me. I have no house to sell, no profits to declare and no stocks to… what do you do with stocks anyway?
But I realise that investing is not rocket science. That starting early is half the battle won. And that it’s possible to put money away and put it to work for me. Now if only they gave me a raise so I could actually have some money to put away…

GET HELP NOW

Most people feel that only rich businessmen and real estate honchos need chartered accountants. But everyone needs a CA. Here’s why:
They’re not scared of paperwork. They’ll file your tax returns that you have been too lazy to file.

If you end up blowing all your cash on poker one evening, they’ll make sure you’re still left with something.
They’ll tell you if you can afford a mansion or studio apartment in five years based on how much you earn today.

DONATE IN KIND TOO

Just because you signed over a hefty wad of cash to air-condition an old-people’s home doesn’t mean there aren’t other ways to contribute. Several groups are just as happy to receive your old, but useable clothes, recyclable goods, books, toys your kids have outgrown, furniture, time and skills. And you never know who might need it – a school for hearing impaired might want your old cellphone so students can use SMS to communicate. A dog shelter might want your old books for a garage sale to raise money for a sterilisation drive. A disability group might just need your marketing skills for their exhibition. And the blind may simply need you to read out a textbook to they can make a copy in Braille. Every action that prevents an NGO from using its own funds helps. So

give away!

Giving to charity just to avoid tax? Make sure your money works as hard as you do To find charities within your sector of interest and for more information on specific charities, visit Giveindia.org, Karmayog.org, Guidestarindia.org, Credibilityalliance.org and Dasra.org

To find charities within your sector of interest and for more information on specific charities, visit Giveindia.org, Karmayog.org, Guidestarindia.org, Credibilityalliance.org and Dasra.org

how to give it away

Giving to charity just to avoid tax? Make sure your money works as hard as you do

WHETHER YOU give out of the generosity of your heart or because your income tax adviser asked you to, we doff our hats to you. But what if your hard-earned money isn’t working as hard once you’ve given it away? It doesn’t take much to become a smarter donor. But for the ones who receive it, it makes a world of difference. We show you how to go about it:

FIRST, PICK A SECTOR
“Whether you’re a middle-class person or a high-net-worth individual like Bill Gates, you need an area of focus,” says Deval Sanghavi, a partner and co-founder at Dasra, a strategic philanthropic foundation that, among other things, helps nonprofits manage resources better. Child care, women, senior citizens, rural poor, urban poor, health care, education, disabilities, street dogs or trees? “Every sector needs help,” he explains. “If help is not targeted, help cannot be provided effectively.” Pick a cause that is close to you, so you are more motivated to give.

THEN PICK A CHARITY
Say you want to help children. Should you sign up for the first nonprofit featuring cute baby photos? Bad idea. Your money works hardest when you know how exactly it will change a child’s life so find out what activity a non-profit is dedicated to. They say they care about kids’
education. But is your donation better spent on one NGO’s classes for kids in municipal schools, or another’s project that trains the school teachers to teach better? “You want to pick an intervention that will create the most value,” Sanghavi says. “Most people limit their funding directly to kids, but often that’s not the most helpful.” Training teachers will reach out to more kids than those afterschool lessons would.

CONCENTRATE YOUR EFFORTS

There are several organisations out there doing good work. But if you’re thinking of writing one cheque to a different non-profit every month, think again, advises Sanghavi. Why help 12 charities halfway (a twelfth of the way, really) when you can use the same amount to help a single group see their project to completion? Aim to aid fewer people completely than several people whom you will eventually abandon. Diversification is great for your investment portfolio, not your philanthropy.

THINK LONG TERM
“If you want to make an impact, never write a one-off cheque,” Sanghavi says. “One cheque in one month means the organisation will need to find a new cheque the next month. That doesn’t help the person who is accessing the aid.” Your one contribution can make someone’s day easier. But several contributions over time, even small ones that add up to the same amount you initially decided to give, will ensure that a person’s life is easier as well, and
you are able to keep tabs on the non-profit’s progress too.

DON’T GIVE IT YOUR ALL
If you’re large-hearted (and large-walleted) enough to cover a single NGO’s entire annual budget, should you? Sanghavi says no. “Give only 50 per cent,” he says. “You don’t want them to be dependent solely on you.” He suggests footing the bill halfway on one condition: the nonprofit should have a larger budget the following year. This helps them focus on their own growth and pushes them to raise the remainder of the money elsewhere. And what will you do with the rest of the money you wanted to give away? This time, it’s all right to help out another organisation, with the same clause, of course!

RESPECT YOUR CHARITY
“Give them the flexibility to decide where the money goes and how, and whether rent helps someone better than food,” Sanghavi says. Most charities already know how far your money will stretch and how many people can be helped for how long. Don’t impose your demands – or your charity might offer ineffective solutions that please you more than they help others. And don’t expect immediate results. Change needs your patience as much as your money. “It’s less about protecting your money and more about solving a problem.”

RIYAZ AMLANI The man behind Mocha, Smoke House Deli, SHRoom and Salt Water Café

RIYAZ AMLANI

The man behind Mocha, Smoke House Deli, SHRoom and Salt Water Café

Y OU KNOW the feeling. You’re at a friend’s party. The food’s lovely, the booze is flowing, the music divine, the mood chilled. And someone says, “If we could bottle this evening, we would make a fortune”. You nod, sigh, take another sip of beer and forget all about it.

Except Riyaz Amlani didn’t. It got him thinking that “there was no place where one could hang out with friends in the middle of the day other than Udipis and five-stars. So in December 2001, back when nobody knew what a café meant, he and a couple of friends started Mocha Coffees and Conversation in the outside area of a restaurant his father ran in Churchgate, Mumbai. Amlani, who had no experience in running any kind of restaurant (he’d been a shoe salesman and an entertainment consultant), didn’t have it easy. He had to deal with a lot of scepticism from restaurant people he consulted. “I was told, ‘Selling coffee will not pay the bills’,” he says. “But coming from a non-hospitality background helped. When you come to a business completely un-jaded, you are in a better position to do something different.”
The gang did indeed do it differently. They took a loan of R5 lakh and “got their hands dirty” setting up Mocha. “We faced so many hurdles,” Amlani recalls. “The manager quit on the opening day, and before that, we realised we had no money to buy furniture.”

Despite their problems, Mocha turned out to be a runaway success. It set the ball rolling for Amlani’s firm Impresario Entertainment and Hospitality, which now has 17 brands in 11 cities. “Right from the age of 15, I knew I wanted to be my own boss,” says Amlani, and he’s been happily living his dream. “We worked as hard as we needed to make it work, and finally, I think, a little luck is important too.”

VIJAY NAIR The man behind powerhouse music firm, Only Much Louder

VIJAY NAIR

The man behind powerhouse music firm, Only Much Louder

WHEN VIJAY Nair decided to take a year off from college in 2002, he would have been hard-pressed to explain exactly how he meant to spend his time. After all, what did one mean by ‘managing bands’? “Many of my friends assumed I was wasting my time,” explains Nair. “They told me this gamble was not going to pay off. I find people are pessimistic for you either because they care – or because they don’t.”

Nair began by approaching bands and convincing them to take him on as a manager, booking shows for them, organising gigs and even touring with them. “You didn’t need money to do this,” he says. He also helped clients make and distribute albums, and started organising music festivals around India. It all evolved into an idea for a company: Only Much Louder (OML). Today, a

decade later, that three-letter brand is one of the most sought after on the Indian music scene. OML still manages Indian bands – including Pentagram, Swarathma and Dualist Inquiry – but it also organises ace music festivals such as the Eristoff Invasion and the Bacardi NH7 Weekender (which will kick off in Bangalore from December 15-16). It also produces music shows like Sound
Trippin and The Dewarists, and brings international artists to India (Lady Gaga, Imogen Heap and David Guetta were OML projects).

Today, Nair’s business employs 85 people, and his journey is not over. “For me, this period is more exciting than ever before,” says Nair.

SHUBHRA CHADDA - The woman behind the kitschy souvenirs brand Chumbak

SHUBHRA CHADDA

The woman behind the kitschy souvenirs brand Chumbak

W OULD YOU sell your house to finance your dream? When you’re on maternity leave? Shubhra Chadda did. In 2010, she sold her Bangalore flat for R40 lakh and put that money into her quirky India-themed lifestyle accessories brand, Chumbak. “I was working for a company called NetApp and I got to travel a lot,” explains Chadda. “I’d pick up a fridge magnet from every place I visited. One day, it struck me that none of my magnets
were from India. That’s when I came up with a plan to make India-themed magnets.” Her boss was not encouraging

(“How many magnets will
you sell?”), so Chadda went back to the corporate grind. A couple of years later, when she decided to have a baby and take a year’s break, she figured it was time to transform her dream into reality. “I was a constant cribber and never wanted a desk job,” says Chadda. “So when Samara was born, I thought to myself ‘let’s do this now’. I made a list every morning, got samples ready, registered the company, and went ahead. I wasn’t scared because I knew I had spotted this big gap, and I wasn’t deterred by negative criticism.”

There certainly were some eyebrows raised. An elderly gentleman looked at her spoofs on Indian stereotypes and accused her of “making fun of Indians” but ultimately, the joke was on him. Chumbak broke even within its first year and now retails from 120 stores across India. “We joined Facebook early, and had an online store in a month’s time,” she says. Of the stores that stock Chumbak, “Ninety per cent approached us, and now, my challenge is to improve our instore displays.”

NINA LEKHI The woman behind the bags and accessories brand Baggit

how make to it!

Who says you need money to make money? Four entrepreneurs tell us how they dreamed different, broke the rules, took the risks and struck it big

NINA LEKHI The woman behind the bags and accessories brand Baggit

M ANY STUDENTS are asked to stop coming to class when they bunk too many lectures. Only that Nina Lekhi used that year off to kickstart her own bag-making business at the age of 17 in 1984. “I had no idea I was going to be an entrepreneur,” says Lekhi. “Even now I still see myself as a designer.”
Even her family had difficulty grappling with her work. “My father would ask me, ‘Why are you doing all this when you’re eventually going to get married and make rotis?’” recounts Lekhi. But they let her turn the living room into a factory and her bedroom into a storeroom.

So she persisted, designing bags, selling them in consignments, making deliveries via buses and managing all aspects of the business from purchasing to sales. “I had no fear because I had no targets and I never saw myself as an entrepreneur,” explains Lekhi.
Today, Baggit is a R50- crore business. Its bags, purses, belts, shoes, multi-purpose pouches and wallets are stocked at major malls and 16 Baggit stores across the country. But Lekhi’s not done just yet. “I want 200 stores and I want to retail abroad. I’m just waiting for their economies to grow.”

Lekhi also confesses to thinking about business “all the time”. “On holiday, if I see a woman with a nice bag, I immediately start following her.” And even during the photo shoot, when we ask to pose with her bags, she picks up each one and first asks her sales staff, “Will this be in stock when the story comes out?”

A 27-year-old Mumbai boy has won an award given by the US’s Massachusetts Institute of Technology, where he is studying, for his software solution that acts as a LinkedIn for professional musicians

Network of notes

A 27-year-old Mumbai boy has won an award given by the US’s Massachusetts Institute of Technology, where he is studying, for his software solution that acts as a LinkedIn for professional musicians

The online medium has given artistes a sense of independence, allowing them to upload biographies and profiles on their own, without relying even on an agent. These platforms are also a means of community-building. But we must also acknowledge that even online forums are not as independent today as they are perceived to be. SHUBHA MUDGAL, vocalist and co-founder of music label and e-store Underscore Records Forums that aim to open up the classical music market and give organisers access to talented musicians are an excellent idea. Such platforms could finally make this a viable career option for talented youngsters. SHASHI VYAS, director of Pancham Nishad, a company that organises classical concerts and festivals

Growing up in Mumbai, Sriram Emani was always diligent, working hard at academics but also making time for his passion — Carnatic music. When it came time to choose a career, however, his family didn’t like the idea of him trying to earn a living as a vocalist. So he chose an engineering degree at IIT-Bombay instead.

Sriram Emani, a second-year management student at the Massachusetts Institute of Technology, originally wanted to pursue a career in music. Now, his IndianRaga website, launched on November 7, promises to help others fulfil that dream. Now a second-year management student at the Massachusetts Institute of Technology (MIT), Emani, 27, has launched a start-up that he hopes will make it easier for aspiring classical musicians to choose their passion as their livelihood.
Launched on November 7, his company, Indian Raga, has set up a website that operates as a sort of LinkedIn for classical musicians, allowing artistes to create professional profiles and use them to connect with industry stakeholders such as concert organisers, music labels and recording companies.
Three weeks before its launch, Indian Raga won the 2012 MIT IDEAS Global Challenge Community Choice award and the 2012 US Creative Business Cup award, for its promising business model.
It has now also partnered with the Kolkata-based ITC Sangeet Research Academy to organise a fellowship contest, whose winners can avail of master classes and short-term residencies with gurus from the academy.
In the largely unstructured sector of Indian classical music, where breaks usually come through personal connections and word-of-mouth publicity, Emani’s start-up is part of a growing number of entrepreneurial ventures that aim to make access to opportunities more organised and democratic.
Last year, for instance, Mumbaibased Aishwarya Natarajan launched Indianuance, a company that provides professional management to classical musicians, arranging, curating and marketing their programmes with the aim of broadening their audience base.
Artists-India Gallery, an online venture similar to Emani’s, features profiles and recordings of a range of classical musicians, dancers and artistes.

Other ventures, such as Sonic Octaves and Underscore Records, help artistes with the recording and sale of their music.
“The biggest challenge for artistes today is to translate their work into money, and their greatest need is to have easier access to performance opportunities,” says Emani, speaking to HT over the phone from Boston.
Emani co-founded Indian Raga with engineers Anasuya Mandal and Neha Jaiswal. “I realised that an online community would be a good platform where musicians and the industry could meet,” says Emani.
In its first month of operations, Indian Raga has already received 20 artiste profiles, most of them from the Indian diaspora in the US and Canada.
“All over the world, the Indian diaspora is eager to connect with the homeland. Thousands are learning and performing classical music, and audiences are willing to pay well for concerts,” says Emani, who wants his forum to benefit more artistes in India.
Some experts, however, believe that building an audience base for fresh talent may not be so easy at home.
“Here, people expect everything that is not Bollywood to be free or subsidised. We are quite spoilt,” says Natarajan, 30, who manages careers for six musicians, including classical guitarist Debashish Bhattacharya and Carnatic violinist duo Ganesh and Kumaresh, through Indianuance.
Online forums such as Emani’s are still a welcome change, says sitar and tabla maestro Nayan Ghosh. “A generation ago, music circles in every city provided regular platforms and audiences for concerts. Today, they are being replaced by corporate patrons who pay large sums for big events, making it difficult for most artistes to procure concerts for themselves and make a living.” Ghosh adds that the stress of trying to network and hunting for concert slots also makes it difficult for lesser-known artistes to focus on their music.

“Good entrepreneurial ventures that offer performance opportunities will, therefore, always be a useful contribution to the musician community,” he says.

It’s shopping season

With Christmas, New Year and a bunch of weddings and parties to attend, December is always a packed month. Here’s a guide to always looking trendy wherever you go.

Designer duo Lecoanet Hemant has launched a new collection of jewellery. The playful range has the designers’ quirky dog logo on the cocktail rings, and small charms on the necklaces.

French Connection has launched its party collection that has classic bodycons and embellished dresses with contrast zippers, bandage panels, ribbed epaulets and metallic finish. Available at all outlets.

Crimzon, Juhu has introduced a new bridal and formal collection of shoes with velvet, embroidery, laces and embellishments.

Log on to koovs.com for a party collection, featuring dresses, jewellery, bags and footwear for all price ranges.

Zivame.com offers a range of what they call ‘party solutions’. They include shapers to wear under fitted dressed, printed leggings and stocking as well as various lingerie options for offshoulder and backless outfits.

Turn to designer label Vizyon for a range of party wear this season. Outfits have stylised silhouettes with dazzling embroidery and sequins.

www.kanaccessorize.com BY: Ileshaa Khatau, 24 and Neomy Khatau, 51

BESPOKE FOOTWEAR BY KAN

BY: Ileshaa Khatau, 24 and Neomy Khatau, 51

WHAT THEY DO: Neomy took to producing her own label of hand-crafted footwear in 2004, after she struggled to find stylish footwear in stores. Since then, Kan has supplied contemporary, quirky and colourful footwear to The Bombay Store, and now, Aza, Atosa and Vanilla Moon. Clients’ feet are measured and their personality is figured out over social banter and some questions. “Some customers have back problems, some have narrow feet, some have very tiny feet — these customers need stylish shoes in their size, which can’t be found in stores. This is one of the most valuable bespoke services we provide,” says Ileshaa Khatau.

HOW IT WORKS: At their Carmichael Road studio, go through a presentation, a catalogue and fabric swatches. Against a backdrop of bright-hued, quirky footwear in pop colours, brocade, raw silk and dull gold, you are shown ready pieces and are asked if you would like to tweak any of them to your liking. You can also bring reference images or an outfit along.

PRICE RANGE: R2,200- 7,000 depending on the level of customisation

GET IN TOUCH:

www.kanaccessorize.com

www.facebook.com/BblingAccessories BY: Meghana Mutatkar, 30, and Madhavi Mutatkar, 57

BESPOKE HANDCRAFTED FASHION JEWELLERY BY BBLING ACCESSORIES

BY: Meghana Mutatkar, 30, and Madhavi Mutatkar, 57

WHAT DO THEY DO: Every two months, the mother-daughter duo produces a new collection of 10-12 items, which works as a catalogue for customers. They love working with dark gold, crystal, stones and sometimes even fabric and embellishments.

HOW IT WORKS: You come in with an outfit or occasion in mind and see the latest collection, based on which items are customised or created from scratch. Bbling’s current collection is called Phoenix, a take on royal Egyptian jewellery, and sees a lot of dull gold, chunk chains embellished with coloured, chunky stones.

PRICE RANGE: R850- 2,500 GET IN TOUCH: www.facebook.com/BblingAccessories

PARTY GOWNS AND DRESSES BY KAZAMIIR BY: Haasya Chandna, 26

BESPOKE PARTY GOWNS AND DRESSES BY KAZAMIIR

BY: Haasya Chandna, 26

WHAT SHE DOES: Long dresses and gowns are a must-have wardrobe item for this party season. Inspired by designers Alexander McQueen and Elie Saab, Haasya’s label, Kazamiir, specialises in evening gowns and cocktail dresses. With a clientele based in London, Kuwait, Dubai, USA and India, she is abreast with all the latest trends and styles in India and abroad. A graduate of London School of Fashion, Haasya started retailing at multi-designer stores such as Aza, five years ago. Earlier this year, she started customising for individual clients from her studio in Bandra. “An evening gown is hard to buy off the rack; it’s an item that can look stunning if only customised to your body type and taste,” she says.

HOW IT WORKS: Once you fix an appointment with Haasya, the initial discussion is on the budget. Next, she will show a few pieces made for other clients, for you to get an idea of her work. But no piece is made twice in Haasya’s studio as she believes in originality for every client.

PRICE RANGE: R15,000 to R55,000 for evening gowns; R9,000 to R16,000 for short dresses

GET IN TOUCH:
www.kazamiir.com

Five new labels tell us why customisation is the way forward this party season

MADE TO ORDER

Five new labels tell us why customisation is the way forward this party season

Even the party scene is competitive these days. Nobody wants to wear something everybody else has, so they are ready to pay a premium for owning an outfit or accessory made especially for them.

The trend of bespoke fashion comes when people are already spending generously on how they look. But new bespoke labels in the city are dispelling myths associated with words like ‘customised’ and ‘bespoke’ — such as ‘expensive’ and ‘out of reach’. They are making it more accessible by pricing competitively and giving their labels a relaxed, youthful touch.

As the party season heats up, here are five new bespoke labels you can turn to for that absolutely perfect look

www.sshomme.in BY: Sarah Sheikh, 24, and Sandeep Gonsalves, 26

BESPOKE MENSWEAR BY SS HOMME

BY: Sarah Sheikh, 24, and Sandeep Gonsalves, 26

WHAT THEY DO: SS Homme customises shirts, tuxedos, waistcoats, bow ties and ties, sherwanis and Nehru jackets. Sarah, a graduate from London School of Fashion, has a fashion ethic that is subtle, focusing on clean detailing, fit, fabric and finishing. “I don’t do bling, embroidery or stonework for Indian wear,” she says. “My look is classic, with subtle details such as piping, pocket and collar styles, velvet borders or pleating techniques.”

HOW IT WORKS: After booking an appointment with the duo, you drop in at their Khar studio to check out their sample rack. Pick a fabric using fabric books sourced from brands like Scabal, Loro Piana and J. Hampstead, and be measured from head to toe. Sarah will advise on the silhouette and start detailing the garment based on your personality, body frame and the occasion. An artwork is created on Photoshop, using a scanned version of the chosen fabric to help you visualise the outfit. It takes around 10 working days for the garment to be ready, and includes two trial fittings.

PRICE RANGE: Shirts start at R4,500; full suits start at R18,000; sherwanis
start at R28,000

GET IN TOUCH:
www.sshomme.in

WWW. BOMBAYSHIRTS.COM BY: Akshay Narvekar, 30, of Bombay Shirt Company

CUSTOMISE YOUR SHIRT ONLINE WITH WWW. BOMBAYSHIRTS.COM

BY: Akshay Narvekar, 30, of Bombay Shirt Company

The Bombay Shirt Company website
WHAT THEY DO: You turn designer here. Through simple options on their website, you pick details such as type of collar, button, fabric and cuffs for your shirt. To make sure the fit is perfect, you can either pick from the readymade sizes or tweak their measurements. You can also send in a well-fitting shirt of yours to replicate the measurements.

HOW IT WORKS: A cool video teaches you how to measure accurately. Illustrations and descriptions for each fabric type, cuff or collar type, help you make the right choice. Fabrics and styles are also divided into 9 am and 9 pm to make it easier to pick for work or after-work. There are also a sizeable number of pre-loaded designs. You check out, pay with your credit card or cash on delivery. The shirt reaches you in a week. Alterations can be made after the purchase.

PRICE RANGE: R1,700- 1,900 WHAT’S NEXT: A webcam app on the website that will take your measurements directly in two steps, and a range of women’s shirts, trousers, jackets and accessories.

‘The biggest test for Cyrus is to stay true to the Tata code of ethics’

Having steered over hundred companies of the Tata group for more than two decades,
Ratan Tata, who retires on December 28 as the group's chairman, says he has always tried to do the "right thing" but rues that Indians have a tendency to harp too much on the dark side of things and pull down those with the ability to progress.
"In my interactions with business leaders in India, as against elsewhere, there is this feeling that they are looking for cracks in your armour in order to pull you down; this happens not just to me but to everybody," Tata said in an in-house interview to Christabelle Noronha, chief of group corporate affairs at Tata Sons.
"There is a tendency to look at the dark side of everybody and everything, every situation and every government move."

You have been at the helm of the Tata organisation for more than two decades. If you were to reflect on this period of your life, what would be your most satisfying memories?
This period has probably been one of the most important in my life. At the same time, it has also been the most demanding that I have experienced. There have been several satisfying memories and some disturbing ones, too.
Perhaps the most satisfying is that during this period one was able to weld the organisation together in a more cohesive way than it had been in its past, that it was able to identify itself more as a group, and that we took bold and, in some cases, rewarding decisions in terms of growth, including the making of acquisitions overseas. It would have been tremendously satisfying if economic conditions globally had continued to be buoyant.
This, unfortunately, has not happened and that reality has affected the satisfaction index.
Ratan Tata has always seemed to be a contemplative kind of person, an introvert who appears to be most comfortable away from the glare. How have you been able to manage the attention and the limelight that came with the chairmanship responsibility? What kind of defence mechanisms have you had to employ to deal with the expectations and the unrelenting scrutiny?
When I took up the position of chairman, I had an underlying dilemma in my mind on how to fill the shoes of a very great person. The decision I made was to just be myself. That, I think, carried on to the interactions with media and in public life. I decided to be myself.
I am an introvert, kind of a private person, and I tried to remain that way. Some of the media glare I could not escape, so I faced up to it as part of the job. But in every other way, maybe to some extent to the detriment of the group and myself, I stayed away from the media unless I had to. I avoided being an easily accessible person and, as a consequence, the group has probably not had the visibility and the public relations positives that it should have garnered.
Would you have liked to do things differently?
No, I would not. As I said, I wanted to be myself and I did not make the sacrifice that is demanded if you are to be seen as a public figure.
When you were appointed chairman of Tata Sons, did you doubt your ability to provide the group with the kind of leadership it required? What were your main concerns?
That's a difficult question to answer. JRD Tata (the late chairman of Tata Sons) had around him a team of senior managers, all of them people of substantial standing in their respective spheres. They had high public acceptance and were people with proven track records. While they may have acceded to his wish that I take over the chairmanship - and this happened suddenly - I must confess that I did not feel any sense of joyousness on their part, because some of them had aspirations to have that job themselves.
It was a period of tightrope walking: on the one hand, trying to continue the cordial relationships I had with them, not as chairman of the group but as one of their colleagues, and at the same time trying not to avoid taking the decisions on change that I felt were needed to be taken. The first five years of my being chairman were spent in negotiating and in trying, as diplomatically as I could, to achieve what I was convinced had to be achieved, in some instances to the annoyance and even anger of some of these stalwarts.
How has the responsibility of being chairman over such a long period of time changed you as a person? How different is the Ratan Tata of today from the Ratan Tata who studied to be an architect and then reluctantly plunged into the world of business?
Over the years leading up to becoming chairman, I think I formed views on what the group could do and accomplish. I exchanged notes with JRD on how, from a strategic standpoint, the Tatas should operate (JRD did not, in fact, endorse many of my views). When I did take over the chairmanship, I had a strong desire to implement those changes. As time went on I became more realistic that everything cannot be changed overnight, that change cannot happen by force or diktat, and that you have to carry people with you. I believe I am a softer person today, maybe less decisive than I was when I took over, less idealistic, more pragmatic about what can be done and what cannot, and much more aware of the need to communicate.
For instance, on the communication front, I have changed. I have realised that you cannot carry people with you through public proclamations of what you want to do; there is a lot of behind-the-scenes convincing and cajoling that's needed. I still don't do enough of that, but I have come to recognise the necessity of such an approach and I have improved my communications with others prior to effecting any change that I would like to effect.
But do you really dictate to or mandate people to follow you?
I think it may have been viewed that way at times; at other times it may not have been viewed that way. There have been instructions, guidelines and expectations expressed by me. These have, in some cases, been viewed as a command, in other cases as direction. Within the Tata group there has always been, in my view, this situation where if something that has been put out from my office upsets people, then it's a diktat; if it suits them, it's a guideline. So the same instruction can mean different things to different people.
You appear to be a person who is at home in the world, more comfortable in a global business environment than in your 'Indian business leader' skin. Is that a correct impression?
I am, to an extent, very comfortable in the United States, where I spent 10 years of my life. In my interactions with business leaders in India, as against elsewhere, there is this feeling that they are looking for cracks in your armour in order to pull you down; this happens not just to me but to everybody. There is a tendency to look at the dark side of everybody and everything, every situation and every government move. Outside of India, in the business environment, there is genuine and much greater appreciation of the good that a person does and the success that he or she has achieved.
Some element of this thinking has led me to foster closer relations with business leaders from abroad that I like.
It is said that just as JRD had a soft corner for Tata Steel, you have one for Tata Motors…
I wouldn't say that. Automobiles are a passion with me and so it was with JRD, except that he handed over operations at Tata Motors (Telco at the time) to Sumant Moolgaonkar and thereby reduced his involvement with the company. He retained his interest in Tata Steel and I think the two of us, if you take away the frills, had an equivalent interest in Tata Steel and Tata Motors, respectively. Tata Steel has been the flagship company of the group and JRD had a far greater involvement in its growth and development than have I.
Similarly, I have had a closer association with Tata Motors, both in commercial vehicles and passenger cars.
It's inevitable that people say you have a soft corner for a business concern when you are more deeply involved with it than with others. Coming back to Tata Steel, a great deal of the company's progress happened during JRD's time, but more recently there has been a significant involvement on my part in its growth and evolution. So I don't think it's fair to infer that I have a soft corner for Tata Motors. That said, the automotive business is more lively and intriguing - it's not a commodity business - and I have to confess that my personal interest in automobiles is high and I enjoy being in that business.
You have often over the past few years made clear your intention to step down as chairman when the time comes. What are the thoughts that gather in your mind as that time approaches? Could you share some of the details of your post-retirement years as you have it mapped out? How much space will there be for Tata in this scheme of things?
You will recall that I reintroduced the retirement age criterion in the group and this was done as a set of guidelines. It was considered an edict by some and welcomed by others. While some people have suggested that the retirement policy should not apply to the chairman, I have always believed that you don't make exceptions for yourself. So I took the view that the rule should apply to me too, that I should not be treated differently from everyone else in the organisation in terms of the application of that policy and the content of that policy.
The retirement age was implemented after I took over as chairman. The retirement age I had suggested was 70 years for all directors and 65 years for senior executives. It was then revised to 75 years for directors. More recently, it has been revised back to where I had initially put it. I welcomed the extra five years because it gave me the opportunity to do many of the things I wanted to. If I had stepped down at 70 I would have had fewer years as chairman and that would have meant an unfinished agenda. But I was certainly not keen to see any new modifications to the rule. I realise that I have to live by the rules I have set and step down when the time comes. And that time has come.
Do you have an unfinished agenda still?
Oh yes. I would be a hypocrite if I said I did not.
So what is it that remains to be accomplished?
I think it would not be correct at this point in time to talk about what one would have liked to do; it would not be fair to my successor for me to say. I think he has to have his arena to perform in.
Coming back to business, it has been reported that you are keen on guiding the future development of the Nano in your post-retirement years. How would that association pan out?
I have a view that the Nano can be marketed differently from how it is today. It can, with some evolution, be relaunched and made to serve the purpose for which it was intended. The Nano was meant to be an affordable car for the family, a vehicle that delivers outstanding value for money.
Unfortunately, it has come to be perceived as a low-priced car and various stigmas have been attached to it. It has been marketed like other cars, but as a minimal automobile at a low price. I think that is the wrong way to go and I would love to have a chance to implement a new marketing plan for the product, if that were possible. This is not a stated wish, just something that - if I were asked or got involved with - I would gladly devote my time to.
There has been speculation that you plan to enhance the spread and profile of the charity work that the Tata trusts do, that much of your time will be directed towards this objective.
I think there is potential for a fresh look at the manner and scope of philanthropic grants we make in the areas in which we operate - in rural development, in water conservation, in enhancing the quality of life in rural areas, in health and education. I believe we can bring more technology to bear on our initiatives and that we can be a more effective grant giver than we have been thus far. I believe we can make a great difference to the communities we serve.
We can always continue to donate to non-governmental organisations (NGOs) working in their areas of expertise and base such giving on their track record. The question I ask is: is that all we are, a supplier of funds, or an identifier of good NGOs? Or should we be more creative in terms of considering solutions for a given social or demographic problem, in terms of finding solutions that are innovative and more effective than those that have been tried in the past?
Let me elaborate. The creation of hybrid rice by the International Rice Research Institute in the Philippines, a programme in which Dr M S Swaminathan was involved, changed the face of rice growing in Asia. It was the application of modern technology to a traditional form of agriculture and it has changed the lives of millions of people. That's just an example; it's not that I want to pursue DNA or gene manipulation in the product. What I'm saying is that application of technology and the creation of something new can transform lives. What I would like to do is give more of my time to those kinds of possibilities and move some of our grants towards those kinds of discoveries, in the hope that we can change or enhance the quality of life of people who need such help.
What, in your opinion, are the most significant challenges that Cyrus Mistry and his generation of Tata leaders will be confronted with as the group looks to expand and consolidate in the decades to come? What do they have to watch out for?
I have said this before and I continue to say it today: the most valuable asset we have in our group is our ethical standards and our values.
Unfortunately, as a nation, we seem to be following, more and more, a divergence towards a breakdown in the fabric of values and principles and ethics. We have, in the years that I have been involved and, of course, when JRD was at the helm, stayed true to our principles. We have managed to grow and we have managed to abide by our values without compromising. We have been respected for that and, in some cases, we may have lost opportunities due to that. But, as I have frequently said, I can go to bed at night knowing that I did not succumb.
I reckon this is going to be the greatest challenge - the challenge of staying faithful to the Tata code of ethics - that Cyrus and the group will have to confront in the coming years. They will have to make decisions and, when they do this, they will be constantly faced with the question: do you compromise, do you give in? You can call it by another name, but in playing this game of appeasing or surrendering to a venal system, the soft option, the easy way out is a compromise. And compromise can set in gradually, in a very small way, but there's no turning back once you are in. That is going to be the greatest challenge, more so even than the ability to run the business prudently.
On the other hand - and I am quite certain of this now that I have worked with him for a year - Cyrus's values and principles are not different from ours, and he does have the strength of character to manage this critical aspect. In addition, and I have watched him at close quarters, he possesses the ability to analyse businesses. I consider myself to be more of a numbers person than JRD was. I believe Cyrus is more of a numbers man than I am.
The group will therefore be in the hands of somebody who will understand the business environment better than me. I tend to rely a lot on intuition. I believe Cyrus will bring a new dimension to the group and I also believe he will uphold its values.
You were quoted in a recent interview as saying that you have "not been able to create the truly open, flat, transparent organisation that I had hoped we could do." What exactly did you mean?
What I am trying to say is that in India, regrettably, hierarchy and designations are more important to people than job content or even pay packets. When you are overseas you don't have someone talking about a batchmate and seniority based on year of graduation. But that's what tends to happen in India and it's sad because there's an assumption here that age and seniority go hand in hand with merit.
I had hopes that we could create a flat organisation where hierarchy was downplayed and that we could create a culture where performance was rewarded with recognition, monetarily and through the placing of the meritorious in positions of importance. Designations would have been flat in such a system.
I have found the reactions to such an idea absolutely contrary to what people want: when it suitthem they say it is great, but when it comes to how it affects them, they do not want to see it happen. To that extent, I think we have failed - I have failed - in creating a flat organisation.
I have seen some enterprises overseas where everybody from a worker upwards is an associate. Then you have the senior associate, the general manager and so on; four or five levels and that's it. That would be a great way for us to go even in a single Tata company. We, instead, have vice presidents, senior vice presidents, senior executive vice presidents and the like, all these designations crafted to reinforce differences in stature. This, I am convinced, is not how it should be.
If business and the Tata group had not come to dominate your existence, how would your life have played out?
I don't know; it depends on how things happen over a long time. If I had not come back to India, if I had continued practising as an architect, I would have had a completely different life. From 1962 onwards, my life has been about living in different Tata organisations in different positions.
Each of these experiences has had its attributes, its pulls and pressures. It's an impossible question to answer.
In some of our earlier discussions, you mentioned designing the odd house or two. What were those experiences like and what did it feel like to use the skill you were trained for?
In both cases, in Jamshedpur and with my mother's house, I never had a proper place to work, so it was a drawing board on my lap, sitting by the side of my bed. Both of them went the same way: enjoyable to design, frustrating to build.
I seek perfection and this has been a source of motivation for me and also frustration. Architecture - if you do it well, if it results in achieving what you want - can be a fount of extraordinary motivation, and unending frustration if you are not able to accomplish what you have set your mind on. In my life, in business, motivation and frustration have gone together. And frustration is the worst of it, not having things come out as you had perceived or conceived them, and having to sometimes live with what is less than best.
Dogs and cars, flying and doodling, that much the world knows of what Ratan Tata likes when the world of business does not crowd him. What about your other interests?
I used to really enjoy scuba diving. I have done it since 1962 in various waters, in the Pacific and in North America. I perforated my eardrum
too many times and it has become difficult for me to dive without suffering pain in the ears,
which is why I gave it up about five years back. Flying I continue to be involved with. I love flying and I hope to keep doing it so long as I can
pass my medicals and stay proficient. It would be the same with cars, I think. Maybe the desire for fast cars has mellowed in the course of time as one's reactions got slower, but I will always remain fond of cars and the technology that goes into crafting them.
My love for dogs as pets is ever strong and will continue for as long as I live. There is an indescribable sadness every time a pet passes away and I resolve I cannot go through another parting of that nature. And yet, two-three years down the road, my home becomes too empty and too quiet for me to live without them, so there is another dog that gets my affection and attention, just like the last one. Dogs will forever be a part of my future.
I have not given my pets the time I would have liked to; it has always been little snatches. I look forward to having in my hands the luxury of time for my dogs.
What about art, music, books and movies?
All of those I enjoy and would love to have time to pursue. Some are within me, things that I would like to express. I would like to formally relearn music so I can enjoy it by myself. It would be wonderful if I could learn to play a musical instrument; it would absorb me to learn to play the piano, for instance.
What kind of music do you listen to?
All kinds of western music; classical, rock, jazz, I'm equally fond of all of them.
What do you reckon is the greatest legacy of Ratan Tata as chairman of the Tata group?
I have been asked that question before and I have always dodged it. That's because it is for others to decide, not for me. The legacy I leave
behind - that which I am aware of, that which I can express - is that I myself have lived by the principles that I have desired for the group. I have led by example in that sense and I have devoted my life, as best I could, to the welfare of the
group. I have endeavoured to do the best I could with the responsibilities I have had. I have always tried to do the "right thing". Courtesy: Tata Sons website/NewsWire18