Thursday, July 31, 2008

Redefining advertising...

Emami breaks new ground in the cosmetic domain communication

Emami has always believed in ground-breaking activities... and their advertising reflects its dynamic fashion, says the founder, R. S. Agarwal. Today, there’s this big buzz about product-placement (in film) advertising and if meaningfully leveraged, it can revenue-generate while showcasing the product. “Do you know” continues the Aditya Agarwal (the MD and boss-man’s son) “that we hit this button over two decades ago with a Rajesh Khanna-Rekha-Raj Babbar starrer, Agar Tum Na Hote? In that movie of the mid-eighties, Rajesh, the boss-man of an Emami Company hires photographer Raj Babbar to shoot Rekha for modeling of Emami products.” He is convinced that the founding fathers had an uncanny ability to constantly connect with the consumer psyche. Also, “Mr. Agarwal relentlessly followed the theory of destruction and disruption. He believed that if you do not disrupt or destroy, you can never create anything new or fresh; can never move to the next level.” Today Emami’s FMCG segment, powered by a media-spend of over Rs.100 crore – which does not include star-fees or consumer schemes – and having a roster of superstars on their list (Big B, SRK, Sunny Deol, Kareena, Ganguly, Sehwag) zooms ahead with all cylinders firing. Adi agrees that the adspend is perhaps a bit on the higher side but reckons it’s necessary “to build brands designed to impact both mindscape and marketscape. We are small compared to the biggies and need to make a space of our own, in our way…”!

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Tuesday, July 29, 2008

Online advertising

However, marketers are increasingly diversifying their media mix to include new genres and technologies like IPTV, broadband TV, mobile TV, et al. Gaurav Arora, Delhi Head, G2 India, asserts, “Fresh blood that is coming on the client side has much more faith in new media. But the decision makers still don’t trust new media.” According to him, every media has its own reasons why users interact with it. While TV and print are what can be called ‘lean backward’ media, Internet is a ‘lean-forward’ media as there is a two way interaction involved, believe marketers.

In as much, the power of the Internet as an advertising media cannot be discounted. Of course, the benefits of online advertising remain far superior for online sites, as a majority of their clients are online. But other sectors are also cashing in. The financial services sector for one is a clear leader as far as online-spends are concerned. Hari Shankar, Business Director, Starcom IP India says, “The industry which has gained maximum by online advertising is banking & finance (banks, credit cards, mutual funds, stocks & shares etc.). They use the Internet as a lead generation medium. Other sectors that are active on the Internet are mobile, automotive, computers & technology, entertainment, to name a few.”


Going by the sheer number of advertisers optimistically looking at online advertising as a strong upcoming media, even analysts have upgraded their forecasts. Earlier reports suggested that online advertisement segment would grow to Rs.9.5 billion by 2011. But according to the Internet in India report 2007, online advertising in India will be worth Rs.20 billion in 2009 itself. Google’s Rao is as bullish as these figures. According to him, marketers “demand to know the concrete value delivered for a given investment. AdWords, as an example, fulfils this by providing a detailed understanding of ROI.”

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Monday, July 28, 2008

WHEN PROTEGES OUTSMART THE MENTOR

One year after their launch, TIMES NOW and CNN-IBN zoom ahead...

For tennis fans across the world, the year 1991 will always be one full of pathos, a year in which an old war horse and a champion was nudged out by nimbler and more aggressive rivals. With a super human effort, the great Ivan Lendl managed to reach the final of the Australian Open, the 19th time Lendl made it to the final of a Grand Slam event. Fans who enjoyed his indomitable spirit, hard work and nerves of steel were hoping for a Lendl win. But German sensation Boris Becker defeated him 1-6, 6-4, 6-4, 6-4. Lendl lovers were heart-broken, for the man would never reach a Grand Slam final again as players like Pete Sampras and Andre Agassi simply outsmarted this ageing champion.

For tennis fans and couch potatoes who remembered 1991, December 24, 2007, provided a tingling sense of déjà vu as news channels started reporting the results of the Gujarat assembly elections. The man who can lay claim to be the father of psephology in Indian electoral politics was there as usual with the cherubic and sometimes comical Dorab Sopariwala. Prannoy was as usual at his suave best at the NDTV studio. But missing were Mahesh Rangarajan (the only man who correctly forecasted the election results) and Yogendra Yadav, who was sitting in another studio with Rajdeep Sardesai, analysing the results for CNN-IBN. And you had Arnab Goswami sitting in the Times Now studio in Mumbai, giving his now familiar ‘in your face’ take on the so-called ‘merchants of death’ elections.

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Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Tuesday, July 22, 2008

Pre-meditated

While other telecom biggies are now keenly embracing the high-potential rural hinterlands, BSNL’s futuristic outlook has ensured its pan-India presence since inception

The government policy to give due weightage to the rural areas is very important, as about 70% of India’s population resides in this area. They don’t have proper communication facilities, so it is also the moral responsibility of PSU’s like us to implement and extend telecom communication facilities to every citizen of India. BSNL has always tried to provide telecom services across all types of barriers, including language terrain. There is a great scope to develop business in these areas and to provide telecom services using the latest technology.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
Read these article :-
B-schooled in India, Placed Abroad (Print Version)

IIPM in Financial times (Print Version)

IIPM makes business education truly global

The Indian Institute of Planning and Management (IIPM)

IIPM Campus

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Monday, July 21, 2008

Why Sony won the format war


When IIPM comes to education, never compromise

Blu-ray has out-marketed, out-punched and over-matched the HD DVD format

Earlier, Sony’s marketing was a bit more rope-a-dope than aggressive sell. Then, late last year, Sony rolled out a series of aggressive television ads that elegantly tied together Sony Blu-ray content with the players - Lance Ulanoff

I finally figured out why I was so dead wrong about the HD DVD versus Blu-ray format war. I should have analyzed the sides—Sony and Toshiba—not as two countries going to war, but as opponents in a close-quarters boxing match. Had I done so, I would have assessed each of the technology’s assets and deficits.

Back in the late 60’s and early 70’s when former heavyweight champion Muhammad Ali was winning all his bouts, commentators extolled Ali’s “reach.” His arms and fists extended a good 2 or 3 inches beyond his opponent’s. This allowed him to inflict stinging jabs to the face and head of his over-matched opponents, including Ken Norton and Leon Spinks. Sony, it turns out, has this advantage, too.

Reach and Distribution

While on paper Blu-ray developer Sony and HD DVD developer Toshiba may appear the same, there are key differences in this pugilistic battle. Sony smartly leveraged its position in a number of key products and content-distribution outlets. It seeded the market with Blu-ray-ready PS3 machines. The machines sold poorly in their first year, but it doesn’t take a rocket scientist to guess that more people bought PS3s than HD-DVD-ready players.

Sony also controls a major television and movie studio, so it had any easier time getting Blu-ray content out into the marketplace. Toshiba and its partners kept pace for most of 2007, but once Warner Bros. walked away, Toshiba could do little to stop others from doing the same.

Flash and Burn

When Muhammad Ali dismantled an opponent, he didn’t just methodically pound him into the canvas. Instead, he danced, smiled and just plain over acted. Sometimes winning in technology requires a little bit of the flash and dazzle. I think Sony got that. For example, Blu-ray drives arrived in PCs before HD players.

TV and Smart Marketing

Muhammad Ali was good TV. In fact, if you like boxing, there was nothing better (whether he was talking or fighting). Toshiba and Sony both sell TVs, but ask anyone on the street who sells the best TVs and HDTVs and they’ll invariably answer Sony.

Part of Ali’s allure and success involved everything he did outside of the ring. Ali would wage a verbal marketing campaign that made fight enthusiasts and his opponents wonder if the fight had been won by Ali before anyone ever stepped into the ring. For a long time, Sony’s marketing was a bit more rope-a-dope than aggressive sell. Then late last year, Sony rolled out a series of aggressive television ads that elegantly tied together Sony Blu-ray content with the players and, more importantly, Sony HDTVs. Finally, there was a full marketing package, a message that perhaps turned on not only consumers but fence-sitting partners who were tying to satisfy both the HD DVD and Blu-ray camps. Toshiba started running similar ads, but because they came after Sony’s, they had the feel of mimicry.

Never Give Up

Muhammad Ali is the only three-time world heavyweight champion (or at least the only one I recognize). The man never gave up. When he seemed down and out, he would train harder and come back with a new strategic battle plan that would usually flummox his overconfident opponents. I give Sony credit. I counted the company out early on, and I think others did as well. Last summer there were reports that HD DVD had taken the lead in the format war, but those claims proved chimerical. Toshiba, on the other hand, made a critical error in January when it responded to Warner Bros. dropping HD DVD by canceling a major Consumer Electronics Show press conference. Muhammad Ali never would have done that.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM, GURGAON
IIPM - Admission Procedure
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!


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Friday, July 18, 2008

Pro-active

Years ago, a can-do spirit prompted K. P. Singh to buy then-barren land in Gurgaon. His foresight has made him one among the richest in India today

DLF has brought about a paradigm shift in the real estate industry. It was proactive in realising the potential of the sector & proved its ability by delivering 9-10 million sq. ft. of finished structures for FY07 and has plans to get another 12-14 million sq. ft. ready for FY08. It also plans to achieve 7-8 million sq. ft. in commercial scale and 25-30 million sq. ft. in retail scale by FY11. With plans to foray into the ‘hotels’ business (with a JV deal with the Hilton Group) the future will only get brighter for DLF.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Saturday, July 12, 2008

Reliance Rodeo hits a roadblock

Ashok Sinha (name changed), who quit his regular job in a pharmaceutical company and took a Reliance Fresh franchise in Lucknow in the hope of a better future, is in a spot. “The first day that we opened the store, violent protests forced a shutdown,” he laments. Following the closure orders in UP, Reliance Fresh has had to fire over 1000 employees in Lucknow, Meerut, Kanpur and Bareilly and put its UP plans on hold. Ashok is not alone, the group has sacked over 400 employees even in West Bengal (4Ps B&M has learned that Reliance will wind up its project in the state). Here, the Ambani army has been browbeaten by Forward Bloc and other left partners, with under construction outlets being ransacked by agitating mobs.

Explains, Ashoke Ghosh, State Secretary of All India Forward Bloc, “We can’t allow any FDI or large scale investor in agriculture related business, which may harm the interests of poor farmers or small businessmen.” In Kerala, the Kerala Vyapari Vyavasayi Ekopana Samithi (KVVES) and CPM are up in arms against super-market chains, including Reliance. Says Pinarayi Vijayan of CPM, “There is no question of allowing monopolists to enter the retail sector in Kerala, come what may.” Ironically, inaugaration of Reliance Fresh outlets in Kochi by a CPM MLA and the Dy. Mayor stirred a hornets’ nest, and both had to apologise later. Reliance operates three outlets in Kochi, Fabmall (Trinethra) 28, Spencers 1, while Subhiksha is waiting in the wings. KVVES plans to hold district and state level conventions this month for chalking out future strategies. Even in Orissa, where Mukesh Ambani had made Rs.30 billion investment plans, Reliance Fresh ventures have hit a roadblock with protests from small time traders. Reliance had to take help of the police and the stores were subsequently closed.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Friday, July 11, 2008

See, touch, feel...

Do customers engage whole-heartedly in your brand? If yes, you may still be able to make it

What is the most critical trait that world famous brands like Google, Wal-Mart, Pepsi, Starbucks, Microsoft, Nestlé and Nike have in common? Perhaps the fact that almost anything they do (or don’t) makes headlines and trigger mass reaction. These companies do not always seek the publicity they get, whether for good or for bad. That is precisely why, although a number of firms around the world mistreat their employees for unfair gains, Wal-Mart gets the most flak for not giving free lunch hours in its organisation. Similarly, there would be a number of organisations that are miles away from confirming to quality standards and need to be severely penalised, but it’s Pepsi and Cadbury that are targettted en masse. On positive side, of course, is the fact that these brands enjoy mass adulation and appeal, which are highly enviable assets. It’s almost as if customers have been involved with these brands throughout their evolution. That’s why Coca-Cola faced huge protests over changing the taste of its cola in 1980s. Even though the new drink was researched by the company as having ‘better taste’, customers wanted their original Coke and nothing else. No wonder Coca-Cola is consistently on the top of the roster of the world’s leading brands.

To attain such high levels of involvement in your brands is getting increasingly difficult and more complex with the sheer explosion of media channels and competitors. Your brand needs to constantly reinforce your core positioning in the eyes of the customer. An interesting example is HDFC, which has emerged a leader in the home-loan segment in India. As the home-loan business was blooming in the late 1990s, the challenge was to acquire and retain customers who often questioned the authenticity of services promised by the banks. HDFC decided upon a unique way to commence its activities way back in 1977 by offering ‘home’ grown solutions for its customers. Keki Mistry, MD, HDFC, while speaking exclusively to 4Ps B&M on HDFC’s customer-centric focus, stated, “They (the customers) want comfort from us that we have checked the property, since we know the credentials of most of the developers and whether the title is clear. We often tell people when to buy and when not to buy.” In this way, HDFC partnered with the customers and helped allay their key concerns, thereby securing their trust.
For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Thursday, July 10, 2008

From Here to Infinity…

INFOSYS: S. GOPALAKRISHNAN

From Here to Infinity…

Forget long-term vision, now it has become a question of day to day survival! With new found evils like rupee appreciation and a possible end to the concessions awarded to Software Technology Parks of India scheme by 2009 to IT companies and with China fast catching up with India in the IT outsourcing business, is the IT sector honeymoon in India over? Well, if the first decade of the 21st century belonged to IT, the second may belong to infrastructure, but success stories like that of Infosys will continue to live on. Markets will see a different Infosys in 2008. A company that has traditionally shunned the inorganic way of growth will be taking the inorganic route for growth and expects to close in deals worth Rs.6000 crores in the next 10 months. The company, in the briefing of its second quarter results staid, it is open to acquisitions ‘if a match is found,’ he said. The company, which had cash reserves of $1.8 billion as on September 30, 2007, has set aside about $500 million for acquisitions.

“The company is cautious in selecting target companies - looking not only for strategic fits but also the overlap of ability to retain employees and alignment of values, culture and ethics,” believes Kris Gopalakrishnan, CEO Infosys. Let’s see how instrumental will this strategy be to help Infosys sail in this flat world.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist)

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Wednesday, July 09, 2008

To ur good health

Vandhana Luthra has done her bit in the Indian beauty & health space. In conversation with Angshuman Paul, she reveals how her journey has only just begun...
When you put your mind to it, there are quite a few critical character traits that would differentiate a good leader from a great one. One of them would definitely be respect for time. As we came face to face with Vandana Luthra, the exceptionally flamboyant yet incessantly professional founder of VLCC, this particular aspect of her personality had us pleasantly surprised, for she was at the venue half an hour before the scheduled time! Her retort, “I never ever want to keep any one waiting,” really set the pace for the interview! Of course, punctuality is not the only aspect which sets Vandhana Luthra apart. To find out more about what makes her click, be with us as we introduce you to the woman who has been relentlessly improving India’s beauty & wellness quotient over the years, as she reveals her game plans with VLCC for 2008.

It was not easy to create country’s largest wellness brand and she gets instantly nostalgic while describing the journey till date. The year was 1989 when ‘beauty business’ was hardly a buzz word (but then again, neither was globalisation!), and there were few skilled professionals in the field. “But at the same time, the demand for such beauty care products & services was there. This was truly motivating and hence we started VLCC. Man power was a major problem, but our organisation was so transparent that we were able to attract many freshers,” explains Vandhana.

That was the beginning and no looking back. With the quest to create something new, VLCC started expanding its arms in various dimensions of health & beauty business. And with its aggressive expansion approach, VLCC proliferated into a pan-India brand. Adds Vandhana, “But we were very choosy about expansion. At the end of the day, you need money, so you can’t go anywhere. Locality, income, & purchasing power were major determinants and we didn’t want to compromise with brand image, so we avoided the franchisee model as much as possible. Even today, in tier II or towns, (only) where we can’t go directly, we have franchisee.”

Such strategies, bucked up with first mover advantage, did the wonder for VLCC. Today, with a sturdy team of 4,000 persons, 300 centres and an exorbitant customer base of more than a million, VLCC dominates the slimming & beauty market, with market share of 40%.

The year 2007 evinced them into new arenas like fast food chain. Coined as VLCC Alive, it’s claimed to be the country’s first healthy & smart eating restaurant. But even Shahnaz Hussain is planning to unleash similar type of food joints (in the form of coffee chain). Moreover, Shahnaz already has a flank of Indian herbal brand in global market. Add to this, the threat from FMCG behemoths like Marico, HUL, who are sounding the battle cry with their beauty salons. So are the pillars of VLCC shaken? Ask her that and she’s ready with the answer, “See, ours is a totally different business and our positioning is also different. We are more into slimming & healthy diet business rather than beauty business. Players also exist in this segment, but it’s much unorganised and not professionally managed, like ours.”


Not a hollow boast, as VLCC is one of the very few orgnisations in this sector, which gets its annual audit done by Ernst & Young. She believes in transparency in the organisation and this is one of the reasons for this strict annual audit. This is also helping her generate funds for VLCC and now she’s gung ho with IPO plans as well. Yes, you read it right. Come 2008 and VLCC will roll out its first IPO. Her entire team is chalking out plans for this as they are in a mission to make VLCC a Rs.10 billion company by 2008. “The way we are growing, I don’t find it at all difficult; moreover even if the IPO is at end of 2008, our existing business will help us to achieve this turnover. We are looking for fresh properties also and for new ventures also.”

But the cautious aggression strategy is intact, as VLCC will engage in extensive feasibility studies before entering any business. As Vandhana sums it up, “You have to keep your consumer in mind and at the same time minimise your cost.” VLCC is aiming to consolidate its global position, as it’s planning 28 centres in the Middle East.

Banking on her team, she is pledging to be more united as she claims that’s the responsibility of a true leader. According to her, a true leader must be a patient listener as well as she affirms, “If you don’t listen to your people, how can you know the problems faced by them and if you cannot addressed problems, then you cannot expect better inputs from them. Also, I feel a true leader should try to motivate his/her people.” Her ideal in terms of leadership is none other than the Indian National Congress President Sonia Gandhi. She appreciates how Sonia Gandhi has taken the leadership role while denying the power position, and is also inspired by the way Sonia Gandhi has maintained a caring image amongst party members. The parallel is evident – Vandhana has not taken up an official designation in her company either.

In her busy schedule and whenever she manages to get time from travelling, she likes spending time with her family. “I also have a fascination for sports, I enjoy swimming a lot,” she adds. So the penchant for fitness seems to come right from the top. And as we bid her goodbye, she shares with us her new year wish, “Let everyone be healthy.” Whether just to remain politically correct or genuinely, few would dare disagree with Luthra on that at least!

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist)

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Tuesday, July 08, 2008

Alarming levels

“Like many people, I got into this business by chance,” Manav confesses. But, having come so far, he understands that having taken the bold step there’s no better way of dealing with the challenges than to live in full conscience that they exist. Talking about the most important challenge, Manav divulges, “If the operating cost increases, it only squeezes the market further. High ATF price is also a big challenge with ATF prices further set to increase globally by about 30-40% from the already alarming levels!” There is also the fact that while dealing with high income customers, recessionary consequences hit your business hard. But, Club One will have to live with this cyclical monster. The company’s slow addition to fleets may also sound logical, but the sudden boom in HNIs during India’s economic boom period may also mean unfulfilled demand. Challenges apart, ‘fractional ownership’ (a concept that Warren Buffet introduced with his chartered airlines business in America) for Indian businessmen has worked well for him. “We made a huge difference as there were not many HNIs who owned aircrafts except a few like the Tatas, Birlas and Ambanis. We take care of everything right from aircraft requirement to safety measures. You call us, say you want an aircraft and get it,” he points out.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist)

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Monday, July 07, 2008

When globally, Motorola was taking a beating, the story-line read otherwise in India. Wonder why?!

MALCOM DAWE... Chairman & MD, Motorola India
When globally, Motorola was taking a beating, the story-line read otherwise in India. Wonder why?!

Motorola is one company that is surely making waves in India, especially over the past year – whether be it through their adcampaigns or their technologically-centred phones. All-in-all, it becomes obvious that Motorola is earnestly striving to create a deep dent in Nokia’s leadership position and make living difficult for other also-rans in Indian telecom handset industry. And the person behind all this is Malcolm Dawe, VP & GM–Mobile Devices (India). Clearly, Motorola India has benefitted from his dynamic leadership with more than 18 precious years in telecom industry across continents (like Asia, Europe & Americas). Explaining Motorola India’s terrific performance of late, he asserts, “Motorola has been focusing on technologically relevant phones in India where the new generation phones are more appealing.” Judging by the fact that globally Motorola grew weaker, he indeed deserves a huge applause

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist)

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Friday, July 04, 2008

Many roles. One man, one vision.To build the future of Ashok Leyland

R. SESHASAYEE... MD, Ashok Leyland
Many roles. One man, one vision.To build the future of Ashok Leyland

He’s a man on a mission. His ultimate prize – serving Ashok Leyland as MD. That’s R. Seshasayee for you. A CA by profession, he joined Ashok Leyland in 1976 and steadily moved up the ladder, to the position of MD in 1998. Thirty years ago, while being interviewed by the then MD, RJ Hancock, he was posed the question, “Where do you expect to reach in your career?’’ Pat came the reply, ‘Eventually in your chair.’’ Ever since, the man reflected his tenacity & determination to integrate and build his career with Ashok Leyland’s growth. The wealth of expertise that Seshasayee brings with him, has helped Ashok Leyland maintain its bottom-line despite the downturn in commercial vehicles market. In fact, the company crossed a turnover of Rs.80 billion in FY07 under his deft leadership on the back of an increased thrust on infrastructure development. Says Seshasayee: “Our figures this year reflect how well we rode the boom in the market... We fielded products that improved customer profitability and supported them with a host of value-added services.” A believer in the power of youth, Seshasayee feels that this generation was born in good times and should strive to take on the world. Aye, aye, Mr. Seshasayee!

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist)

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