A system in rot

In one of my earliest blog posts in September 2008, i had debated the state of Indian roads with the Mint editor Raju Narisetti.
http://newspaper-posts.blogspot.com/2008/08/of-infrsatructure-and-capital.html
http://newspaper-posts.blogspot.com/2008/09/of-infrastructure-and-capital.html

The debate on accountability for the bad state of infrastructure has been re kindled by the CAG report which was reported by TOI:
http://timesofindia.indiatimes.com/Delhi/55_of_roads_okayed_by_MCD_substandard_CAG/articleshow/4203120.cms
The report brings forth the following points

1. MCD accepts substandard road work from contractors insteda of opting for minimum quality standards. Third party checks on 20 roads built between 2003 and 2008 reported 55% of the roads below standard.
   42 roads have been damaged during the warranty period and there have been no repairs made on to them. This was while the warranty covered all costs of repairs.


2. 5 newly built roads made at a cost of Rs.3.18 crores were accpeted by the MCD where as third party checks by the CAG have found them to be substandard.


3. Of 304 RWAs (resident welfare associations) surveyed 77% have reported bad roads in their colonies and 71% have said that the roads in their colonies have not been repaired even once in the last 5 years.


4. Of the total allocation of monies for road development, MCD has routinely diverted the money to purchase of vehicles, computers, hiring of vehicles and office work constructions.


5. Contractors delay the road work routinely, and though they should be fined for it, none of they are ever penalised courtesy MCD.


6. On an average 87% of the total project contractual work amounts are duly paid up to the contractors, with out any completion of work.


7. Monies collected from other agencies for road development lies sorely under utilised.


8. MCD has been commissioning quality checks without mandatory quality checks 53% of the times.


9. A third of MCD assets such as drainage, sewage, roads and subways are in a state of neglect.
   

These are just about gaping wide craters in the system, sucking up the taxpayers money and distributing it to a few pockets in the MCD and the Government machinery. While fraudsters and scamsters are tried, penalised and punished, the MCD - Government nexus which is probably a shade worse in fraud, scmas and misuse of public money go about becoming more powerful and more irresponsible and more corrupt in their ways. One would have to give the kudos to CAG to bring such facts on the table. But one needs a more wilful, accountable and "aware" governance to fight se evils of the system.

Receeding Glaciers: Earth's natural heritage at terrible risk (Part II)

The scale of the problem can be realised when you factor in that huge populations dependent on glacier-fed rivers in Asia - 360 million on the Ganges in India and 388 million on the Yangtze in China alone - will not be able to feed themselves, with devastating effect on already rising global food prices. The problem is the most acute in Asia, where glaciers are an important source for nine major rivers which run through land occupied by 2.4 billion people. In Pakistan, for example, 80 per cent of agricultural land is irrigated by the Indus, which the WWF last year highlighted as one of the world's 10 big at-risk rivers because retreating glaciers provide 70-80 per cent of its flow.

According to a report by the world Glacier monitoring service, from 1850 to 1970, net losses averaged about 30cm a year; between 1970 to 2000 they rose to 60-90cm a year; and since 2000 the average has been more than one metre a year. Last year the total net loss was the biggest ever, 1.3m, and only one glacier became larger. Worldwide, the vast majority of the planet's 160,000 glaciers are receding at least at this rate or more! According to a UNEP report two-thirds of China's glaciers would disappear by 2050, and 'almost all would be gone by 2100'.

In North America, 99-plus per cent of Alaskan glaciers are either retreating or stagnating. In the European Alps, a report last year by UNEP said glaciers declined, from a peak in the 1850s, by 35 per cent by 1970 and by 50 per cent by 2000, and lost 5-10 per cent in the mega-hot year of 2003 alone. UNEP has also reported declines in the last 50-150 years of 1.3 per cent in the Arctic islands to 50 per cent in the North Caucasus in Russia, 25-50 per cent in central Asia, a 2km retreat of the massive Gangotri glacier which feeds the Ganges, 49 to 61 per cent in New Zealand, and 80 per cent in the high mountains of southern Africa. There is also 'considerable' shrinking of medium and small glaciers in central Chile and Argentina accompanied by 'drastic retreat' of glaciers in Patagonia to the south.

On a global level, scientists warn that melting glaciers are contributing more than ever to rising sea levels: expansion of warmer water is estimated to cause two-thirds of the problem, but melting glaciers and icecaps are the second biggest contributor. A recent paper published by Science calculated acceleration of glacier melt could add 0.1-0.25m to sea-level rise by 2100.

At a policy level, leaders around the world are still debating the means to address problems such as greenhouse emissions and carbon footprints. Outside in the wilderness, the last signs of earth's heritage, its glaciers are melting away more rapidly than we care to think about.

(reproduced from http://www.guardian.co.uk/environment/2008/mar/16/glaciers.climatechange)

Receeding Glaciers: Earth's natural heritage at terrible risk (Part I)

http://economictimes.indiatimes.com/Earth/Glaciers-in-Tibet-shrinking-/articleshow/4175959.cms

Glaciers in the Qinghai - Tibet Plateau in Yangtze source area, have receded 196 sq.kms over the last 40 years!

Glaciers at the headwaters of the Yangtze, China's longest river, now cover 1,051 square km compared to 1,247 square km in 1971, a loss of nearly a billion cubic metres of water.

The tongue of the Yuzhu glacier, the highest in the Kunlun Mountains, fell by 1,500 metres over the same period, showed the study

In the short term, melting glacier waters brings more fresh water to rivers, but as the source dies down, the river beds will dry out and have droughts every cycle. This will disturb the population around the banks and the agricultural patterns, which depend on the river as a lifeline. On the other hand melting water in glaciers are also submerging pastures in higher Himalayas impacting the domestic, trade, fauna and flora of the regions. Tibet today faces this problem where Glaciers and their rapid cooling are causing changes both in life and economy of the country.

While Tibet is the just the stating bell, this is an ominous sound of coming disaster which will impact the planet as a whole. As they retreat, glacial lakes will burst, debris and ice will fall in avalanches, rivers will flood and then dry up, and sea levels will rise even further, say the climate experts. Communities will be deprived of essential water, crops will be ruined and power stations which rely on river flows paralysed.

There something about Digital Brands: Buzzing away to glory

If it wasnot for the TATA entry at no.6, the 7 most buzzing brands in India would all have been New age/ Digital/ Electronic brands. This is according to the top 50 list of most buzzing brands in india released by Afaqs.

For the third successive year, Airtel retains the crown of the most buzzing brand. All that marketing spend with SRK, Saif, Kareena, A R Rehman, Madhavan and Vidya Balan is showing there on the top. For a brand selling something as competitive and undifferentiated as air time, Airtel has used all its resources to stay well on top for three years.

If Airtel used its marketing muscle to stay on top, Facebook and Google didnot even move a single muscle. No budgets in marketing what so ever. And Facebook did come ever so close to Airtel. There may be a lesson here, Web 2.0 brands may after all be very independent from the traditional modes of marketing. User Involvement and innovation may be the key in here.

I had blogged sometime back on "What an Idea, sirjee". Appears that the junta under its new founded citizen activism mantra identifies with the campaign and the brand is buzzing high up at No.4. Nokia keeps itself at No 5 and losses a few votes. But, as a company, it backs itself in hard times to come out stronger. You cannot count them out.

A legacy brand 120 years old is as relevant to India as ever. In news because of its Jaguar and Land Rover deals, Tata moves up two notches. As proven by Taj, which comes into No 9 from nowhere a good brand can capitulate on a painful 26/11 thing. To Tata, and to Indianness, These brands keep buzzing1

Hutch was in the top 5 for two years before it went crashing out for a year. After a hiatus of an year, Vodafone crashes in top 10 and the way it is for this brand, it looks like it will surely eye the 6 spots ahead of it next year.

Time of India holds itself steady though it looses a spot. News in India is the Times!

Inspite of being in news through out the year, Kingfisher and Reliance go down by 9 spots on the buzzing brands! Well, India surely believes Buzzing brands need more than bikini ladies and Fisichella force to keep them buzzing. Aint it Mr Mallya? Alsomissing in action is our local brand university, HUL and its power brands. HUL would be dissapointed.

Virgin with its youthy ads seem to have caught some attention here. In a very short time, Virgin really has gathered some insights, which makes it identiable with the youth population in India.

In a high Top of the mind category, Coke seems to have shut itself off from big time advertising and that is showing in there. Refer to Pepsi with its Ranbir - Deepika and Dhoni company which has done somewhat better. Expect Aamir to be back prime time with his Chota Coke or what ever now. Speaking of Aamir, Samsung seems to be getting its act in order with its huge jump in spots.

What ever happened to Maggi, a young India favourite, which has fallen dismally!

One opinion, however controversial in here is that the Afaqs missed listing a big one! This is Brand Satyam. Whether for good,bad or ugly reasons, Satyam has generated more buzz than the whole of the top 5 put together!

The Road to no where: Subhiksha

http://newspaper-posts.blogspot.com/2009/01/subhiksha-perfect-go-bust-part-ii.html

http://www.blogger.com/post-edit.g?blogID=7418068395817476239&postID=1757367981531350090

http://www.slideshare.net/Manas.Ganguly/the-anatomy-of-a-bust

http://www.slideshare.net/Manas.Ganguly/the-road-to-no-where

6 months and 4 posts later, Subhiksha is no tottering on the brink. Its 1600 outlets are all shut. It is not doing business, it has 300 crore of immediate cash requirement, it has not paid its employees 5 months salaries, it is indebted to its suppliers and other creditors, it owes the landlords rents of the outlets, it has no money to pay its security, its stores have been vandalized, most of its managerial cadre has left. How worse can it get? A little more from here: 5 of its 10 directors have resigned from its board, Tata Teleservices which provided its employees with phone lines has a bill of Rs.10 crore, with which it has gone to Chennai court, the EPF trust has moved court against non submission of EPF amounts. It doesnot get worse than this.

Apparently RS is not declaring Subhiksha bankrupt and is going through a debt restructuring programme to make his company lucrative for equity participation offers! Interestingly 5 of its independent directors including the 2 members of the ICICI venture have resigned from its board. Azim Premji, another investor in the company is moving the court on the matter of merger of Subhiksha with Blue Green constructions. That makes 6 independent directors in a board of 10, who appear to have views about Subhiksha and its management, which are completely different from RSs views. The other 4 directors include RS himself and 3 faceless nameless entities from Blue Green Constructions (A company promoted by RS). There are chilling similarities between Subhiksha and Satyam.

In the month of May 2008, Subhiksha had taken a debts from 10 banks worth 620 crore. Then it had also issued warrants to 6 Mutual fund houses totalling another 40 crore. Thats a total of 660 crore. Of Subhiksha's own filing, we know that it is a 2308 crore company in trunover (FY 08). That means a monthly revenue of Rs.200 crores. After recieving a debt stimulus in May 2008, the company started defaulting on suppliers from July and August 2008 and there were delays in employee payments August - September onwards. These matters are in public knowledge by relevant press coverage in those dates. One would assume the 660 crore in the system would have been put to good use and yet the chain was massively defaulting.

Subhiksha was speaking of Private mandis and CDIT stores those days, but the plans never saw fulfilment. There was no significant expansion activity those days. So the 660 crore couldnot have been used up in expansion alone! If 3 montsh expansion ate up all of 66o Crores, that would have a fast and furious expansion and it would again be public knowledge!

If Subhiksha was funding existing operations, running out of 660 crores in 3 months is unbelievable really. For a chain doing 200 cores of monthly business, using up 200 crores (660 crores in a quarter) is tantamount to zero operational deliveries. That is quite an impossibility.

If the 660 crores were used to square off earlier debts, it would have meant that the money put to use earlier didnot earn returns! The model thus was not working from its very beginning!

Which ever way the 660 crores were put to use amongst these three, or a combination of these three; it only demonstrates the incapability of the management at Subhiksha. Perhaps a little more, there is a possibility that the 660 crores could have been siphoned off... (we dont want to relive Satyam!)

With such a background, does RS hope to find a equity buyer... i doubt it.