Archives: April 2014

Convocation Speech by Shri G. M. Rao, Group Chairman, GMR Group; Chief Guest for the 15th Convocation of EDI’s Post Graduate Programmes

The EDI Convocation of PGDM 2012-14 batches took place on 19th April, 2014 at the EDI campus. Shri G. M. Rao, Group Chairman of GMR Group was the honorable Chief Guest who addressed the students on the special evening.

He shared some personal learnings & knowledge about the Entrepreneurship field and motivated students to keep their burning passion alive to achieve success.

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An excerpt from his speech:

“I compliment EDI and its Governing Board for conducting these crucial programs. EDI has been spearheading entrepreneurship development movement throughout the nation with a belief that entrepreneurs need not necessarily be born but can be developed. Being an entrepreneur myself, I highly appreciate this noble task amidst a time when globalization and technology are transforming our economy. I feel so proud to be here today and wish I would have got such unique opportunity of learning entrepreneurship in my college time, maybe I was born much earlier.

Dear students, today is your day and a very special one indeed for you and your dear ones. I am truly happy to be with you to share your joy and excitement. As you cross this important milestone in your life and embark on the journey of entrepreneurship, I am sure all of you will contribute significantly in bringing economic prosperity to our beloved country.

The evolutionary process of Indian style of leadership is being studied as a success story in the leading business schools of the west. Entrepreneurship is the only way to alleviate poverty. And, I am so glad that EDI is creating beautiful entrepreneurs of tomorrow.

Well, people see me as a very successful entrepreneur; however they do not know that my last four decades of journey which started from zero base has been full of adversities which threw up challenges all the time. I strived hard to do my best overcoming the situations and turning them into opportunities. Learning’s from those adversities have been phenomenal and has shaped me what I am today. In fact, this helped me build GMR Group what it is today.

I started without any political support, any financial support in a very limited environment. I had a burning desire to do something. If you have Passion, Patience and Perseverance you can create success in your lives.

I always had the burning desire to do something irrespective of the insignificant background; I had no financial support and no political support. It was that fire in me which kept me moving from one success to another. Hence, nothing is impossible, you can achieve whatever you want if you have the burning desire in you.

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During the process of seeking opportunities, I got brewery license…. sugar factory license. I started another Jute Mill after acquiring it, started Ferro Alloys, Rolling Mills and what not. You name it I was there in that business including trading of timber, IT company, ear buds manufacturing. That was a time when I started different businesses simultaneously.

I was able to operate so many businesses simultaneously because I used to go deep into details of the businesses, understand the nuts and bolts, formulate the operational strategy and quickly delegate to the management so that I can work on the bigger picture. I call this as ‘Helicopter View’ because of deep dive into details and quickly moving upwards on the surface for the big picture.

I tried almost 28 businesses and knowingly or unknowingly became the ‘serial entrepreneur’. I call this as an opportunistic phase, where I was just grabbing whatever came my way.

We came across a huge opportunity of Chennai Power Plant requiring investment of Rs. 800 Cr. My team was initially very apprehensive of this, however I was very confident and fearlessly went ahead. Then we signed an agreement for 200 MW of Power Plant to set up in Chennai. I brought the world best technology in the Power Plant and with great difficulty successfully implemented it.

We had several businesses, 28 businesses, spanning jute manufacturing, Ferro-chrome manufacturing, sugar and so many more.

Moving into strategic mode, I divested all the unrelated businesses. Even my most profitable ventures at that time I divested. We were following our vision “we should build entrepreneurial organizations making a difference to the society through creation of value” and whatever was not fitting into it we divested.

Entrepreneurs need to follow their vision and strategy without any emotional attachment.

Also, whatever I do my thinking is that it should not only add economic value but should also contribute towards social value. I think that mindset has tremendously helped me in building the national assets which are contributing significantly for the social and economic growth of the country. For example, according to the economic research wing of government NCAER, Delhi Airport in 2009-10 has contributed more than 13.5% to Delhi State GDP and 0.45% to National GDP. Not only this, Delhi airport contributes 1.6 million direct and indirect jobs which is about 26% of the total Delhi’s employment.

After the foray into Delhi Airport, we entered into creating power plants with gas assets, thermal, solar and recently hydro power plants.

GMR Group, true to its vision of ‘Creating Value to the Society’, ventured into businesses of nation building, it was the first mover – first for the Group, first for the industry, and first for the country.

But sustainable growth cannot be achieved without institution building; hence we are now focusing on four pillars of Institution Building – People, Process, Technology and Governance. Family governance is also part of our Institution Building process. Actually, Corporate Governance and Family Governance are inter-linked blocks completing the cycle of Institution Building.

I strongly believe in the philosophy “Run the business like a family and the family like a business”.

Only running the business has never been my thought process, I always believe that it is my duty to give back to the society in whatever way I could. ‘Inclusive Growth’ has always been my philosophy.

If I look back at my journey and think about what made me successful. I found out few important traits from beginning helped me:

Our seven values and beliefs which are Humility; Teamwork & Relationships; Respect for Individuals; Learning; Deliver the Promise; Entrepreneurship; and Social Responsibility.

Attitude gives altitude. Positive attitude coupled with the seven values helped me, in accomplishing whatever little I could till now, which I thought of sharing with you. Though, my journey is full of adversities but I sailed through it successfully learning from my failures. Always, remember that- ‘Success is a great Motivator and Failure is a great Teacher’

My dear friends, in conclusion I would like to say that India is a perfect place for your entrepreneurial journey. Two decades back, westerners visiting India thought what they could do for this country. Now the attitude has changed. People visiting India are asking, what India can do for them. With great pride, I can say that no multinational company can afford to be absent from India because of its enormous intellectual manpower.

India has become the testing ground for budding entrepreneurs and we are experiencing increasing trend of innovation and creativity thus producing numerous successful entrepreneurs which is growing every passing day. Traditional entrepreneurial practices and systems are fast getting blurred by new knowledge and understanding, and in that sense you are fortunate to have been educated to pursue entrepreneurship from a guided perspective. I am extremely confident that you people will create enterprises bigger than Facebook and Google.

However, my dear friends remember that in this volatile, uncertain and complex environment, anxiety levels are going up rapidly. If you have to lead a sustainable growth, you have to manage yourself first. And to manage yourself physically and emotionally you need spirituality and yoga, which is irrespective of any religion.

My dear friends what truly matters, is how you evolve as successful human being. No matter what business you are engaged in, be it small time trading or a multi-national company, I strongly suggest that it should be purpose-driven and value-led journey. If your means are value-based, the end is always heartening. Always remember, all of you are the authors of your own destinies.

There is a beautiful saying that –

“Managers Preserve Wealth, Leaders Nurtures Wealth and Entrepreneur Multiplies Wealth”

With this, I wish each one of you all the very best in your journey of entrepreneurship.

I am immensely Grateful to you all for giving me this opportunity to share my learnings and experiences with you.

Thank you !

Seminar Courses under PGDM-BE programme – Part 4

The seminar courses are an important part of the PGDM-BE programme at EDI. They are specially designed to provide in-depth understanding of various sectors where the student wants to associate in future. These first-year seminars are taught by EDI faculty in association with various industry experts and consultants. Seminar faculty often serves as informal mentors for their students long after the class has ended.

(Find a list of topics in continuation to our previous blog posts :

1. http://blog.ediindia.ac.in/seminar-courses-under-pgdm-be-programme/

2. http://blog.ediindia.ac.in/seminar-courses-under-pgdm-be-programme-part-2/

3. http://blog.ediindia.ac.in/seminar-courses-under-pgdm-be-programme-part-3/)

 

(16) Real Estate & Construction (RE&C)

Students will get detailed information on housing, commercial segments and retail segments. They will get to know everything from current market, space to rentals.

(17) SME Consultancy (SMC)

Reflecting the recent economic slowdown in India, it is found that the Indian consulting market grew by 4% in 2012 to just over Rs.9000 Crores. The report says that despite this modest growth, the economic slowdown has in some ways become an important driver of demand in India’s consulting market as clients seek help to both increase revenue and improve efficiency.

Interestingly, it is found that small and family owned businesses are becoming increasingly important buyers of consulting services in India as a new breed of young, highly-educated business people rise in the ranks and are eager to take their businesses to the global stage.

Students will know how the conservative, provincial local businesses of India are being transformed by a new generation of sophisticated, highly educated young professionals who are confidently taking the helm, steering their ships into international waters.

(18) Textiles & Garments (T&G)

The Indian textile industry is likely to grow by 16 percent this year and could reach US$ 115 billion by 2012-end, according to a recent report released by ASSOCHAM. The domestic market is likely to increase from ` 34.6 billion to 60 billion by 2012. India’s share of global textile exports is poised to increase from current 4% to around 7% over the next three years.

Students will learn about the positive and negative factors, like -depreciating rupee and decreasing cost competitiveness of China, -economic uncertainty in US and Europe, -volatile global markets affecting demand,- volatile foreign exchange rates ,-increase in minimum support price for cotton, etc.

(19) Tourism & Hospitality (T&H)– The tourism and hospitality industry of India is thriving and growing at a fast pace. The country’s travel and tourism industry is one of the most profitable industries in the country, and is credited with contributing a substantial amount of foreign exchange. India’s rich cultural heritage, traditions, festivals, food, architectural monuments, hospitality and services are positive strengths for its tourism sector.

The interesting part is that the Indian tourism sector needs an urgent image makeover and higher investment in infrastructure, including through public-private partnership (PPP) mode to capitalise on opportunities provided by overall growth in world tourist arrivals, according to the Economic Survey 2012-2013.

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Seminar Courses under PGDM-BE programme – Part 3

The seminar courses are an important part of the PGDM-BE programme at EDI. They are specially designed to provide in-depth understanding of various sectors where the student wants to associate in future. These first-year seminars are taught by EDI faculty in association with various industry experts and consultants. Seminar faculty often serves as informal mentors for their students long after the class has ended.

(Find a list of topics in continuation to our previous blog posts :

1. http://blog.ediindia.ac.in/seminar-courses-under-pgdm-be-programme/

2. http://blog.ediindia.ac.in/seminar-courses-under-pgdm-be-programme-part-2/)

 

(11) Healthcare & Lifesciences (H & LS)

Healthcare resources in India though not adequate, are ample. There has been a definite growth in the overall healthcare resources and health related manpower in the last decade. However, unequal distribution of resources becomes apparent and access to quality healthcare services has been limited by income inequality.

The government of India is considering a proposal to increase public expenditure on drugs from 0.1% of GDP to 0. 5. of GDP and provide free essential medicines to all. Apart from this, more facts & real picture about the field will be imparted to the students.

(12) Information Technology Enabled Services (ITES)

The global technology and related services sector recorded a steady growth of 4.8% in 2012 to USD 1.9 trillion .As per latest report of NASSCOM, IT-BPM services and software products continued to lead, accounting for over 58% of total IT spend .Total revenues of IT industry is expected to grow by about 13-15 per cent.

Students will learn more on how Cloud computing and virtualization technology provides flexibility, convenience as well as reliability along with cost optimization. Convergence of mobility and web is opening several opportunities for new applications for mobile access to the system particularly in the area of business intelligence and reporting. Existing applications also need enhancements to incorporate these technologies.

(13) Infrastructure (INFRA)

India’s infrastructure sector spearheads the growth of the Indian economy. Recent policy initiatives and the emphasis on infrastructure showed by the government in the budget are also expected to provide an impetus to the sector.

Students get to know about the Business Environment changes, selection criteria of bidders, change in law, credit availability, delay in government clearances/approvals, etc.

(14) Logistics & Supply Chain (L & SC)

The annual logistics cost in India is estimated to be 14% of the GDP, which translates into USD 140 billion assuming the GDP of India to be slightly over USD 1 trillion. Out of this USD 140 billion logistics cost, almost 99% is accounted for by the unorganized sector and slightly more than 1%, i.e. approximately USD 1.5 billion, is contributed by the organized sector.

There are many Opportunities coming on the way like Manufacturing boom, expected rise in International trade from India, MNC’s setting up manufacturing in India, Government’s thrust on Infrastructure and implementation of VAT will lead to growth in warehousing business.

(15) Chemicals & Allied Products(C&A)

Chemicals are a part of every aspect of human Life, right from the food we eat to the clothes we wear to the cars we drive. Chemical industry contributes significantly to improving the quality of life through breakthrough innovations enabling pure drinking water, faster medical treatment, stronger homes and greener fuels. The chemical industry is critical for the economic development of any country, providing products and enabling technical solutions in virtually all sectors of the economy.

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Seminar Courses under PGDM-BE programme – Part 2

The seminar courses are an important part of the PGDM-BE programme at EDI. They are specially designed to provide in-depth understanding of various sectors where the student wants to associate in future. These first-year seminars are taught by EDI faculty in association with various industry experts and consultants. Seminar faculty often serves as informal mentors for their students long after the class has ended.

Let’s see a brief of the various topics that fall under the Seminar Courses: (In continuation to the previous blog post – http://blog.ediindia.ac.in/seminar-courses-under-pgdm-be-programme/)

(6) Mechanical Engineering (ME)

The Indian engineering industry accounts for 27 per cent of the total factories in industrial sector and represents 63 per cent of the overall foreign collaborations. The engineering sector is one of the major contributors to the country’s total merchandise shipments. India is one of the leading offshore destinations in delivering engineering research and development (ER&D) services with a market share of 22%.

Students will be briefed about the transport equipment, capital goods, other machinery/equipment and light engineering products like castings, forgings and fasteners.

(7) Media & Entertainment (M & E)

The Indian M&E industry is projected to grow 11.8 per cent to clock revenues worth Rs 91, 700 crore (US$ 16 billion) in 2013, according to an industry report.

Students will get a complete information about television, print, radio, animation, visual effects, films, music and internet. Moreover, the Government’s drive towards digitalization and addressability for cable television by 2014 is expected to provide a boost to direct-to-home (DTH) and digital cable growth

(8) Environment & Green Business (E&GB)

Climate change caused by increased GHG emissions from energy and resource inefficient manufacturing equipment gives rise to wide range of long term economic security threats. Increasing levels of toxicity released into the ecosystem from pesticides and by-products from manufacturing process threaten the well being and productivity of human beings and have led to the extinction of several animal species.

Students will get to know about the energy efficiency concern further accelerated by concerted Government of India policy to enable faster integration. Green Chemistry is a practice of scientific research that focuses on increasing the safe and accelerated biodegradation of chemical by products and discovering natural substitutes for synthetic and harmful chemicals. It will also include Water Security & Access, Waste Management & Sanitation and Energy Security.

(9) Financial services (FS)

The Indian financial services sector is one of the most complex, yet one of the most robust service segments of the Indian economy. Spanning from insurance to capital markets, banking to foreign direct investments (FDI) and from mutual funds to private equity (PE) investments, the financial services sector covers all related segments under its umbrella.

This topic will help students to know about the major effects in its abstract as well as physical form post liberalization, international financial frameworks and promises to surpass them in terms of performance in the years to come. Sectors under finance include Insurance Sector, Banking Services, Mutual Funds Industry in India, Private Equity, Mergers & Acquisitions in India and Foreign Institutional Investors (FIIs) in India.

(10) Food Processing (FP)

Food processing is one of the largest industries in India, ranking 5th in terms of production, growth, consumption, and export. Many big international players are entering the Indian market by partnering with domestic players. This trend will emerge more strongly by 2015, providing opportunities to local players.

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