HDFC's Deepak Parekh : Will the pressure tactics work?

One always suspected that the young and bright Nasser Munjee of the Infrastructure Development Finance Company (IDFC) would make history some day. But nobody thought he would make it so early and in the manner he has. Last fortnight, Munjee, CEO and Managing Director of the government-owned IDFC, and his entire senior management team resigned in protest over the government's proposal to merge IDFC with banking behemoth SBI. The motive: more control over a Rs 50,000-crore infrastructure fund for which IDFC may be the prime vehicle. Will Munjee's pressure tactics work? HDFC Chairman Deepak Parekh may well hold the answer, not just because a committee of IDFC's directors, including him, Finance Ministry's Vinod Rai and SBI's A.K. Purwar is looking into the issue, but because he's been known to get on top of knotty situations quickly.

-Roshni Jayakar

REFUEL
Oil & Pizza

United Pizza's Vahid Berenjian: Taking a large bite

No, that isn't a reference to the fat-content of pizzas (considerable, if you must know). Rather, it is about the alliance between the Bangalore-based fast food chain US Pizza, and oil major Hindustan Petroleum (HPCL). Already, seven HPCL outlets in three cities boast US Pizza outlets and Vahid Berenjian, the Chairman of United Pizza, the Indian arm, expects to end the year with 75. ''Our aim is to cover 500 HPCL stations in the next three years and, eventually, all 5,000.'' The oil company is to provide anything between 70 sq ft and 1,600 sq ft for the outlets; in return it will earn an undisclosed percentage of pizza sales. Big deal: we think so. The alliance could revolutionise the Rs 173 crore Indian market for pizzas. What's your preferred topping?

-Venkatesha Babu

Q&A
"We Are 10 Months Ahead Of Our Target''

Indian pharma companies are emerging a force in the $45 billion (Rs 2,07,000 crore) global generics (off patent drugs) market. The proof: In February, Ranbaxy Laboratories achieved sales of $1 billion or Rs 4,600 crore (on a moving annual total basis) and became the first Indian drug company to enter the billion-dollar club. Next step: $2 billion (Rs 9,200 crore) by 2007 and $5 billion (Rs 23,000 crore) by 2012. Joint Managing Director and CEO-designate Brian Tempest spoke with BT's Sahad P.V. about the generics opportunities and the challenges.

You set the target of $1 billion in sales by 2004 in 1993. Did you expect it to happen on time?

We are actually 10 months ahead of our target. In fact, we have been smelling the $1 billion mark since the end of last year.

What now? Where do you expect your growth to come from in the coming years?

We will be growing our business from the three legs. One is the US, second Europe and third is the BRIC (Brazil, Russia, India and China) countries.

There are uncertainties in the generic business. Recently, Dr. Reddy's suffered a setback in their challenge of Pfizer's Norvasc...

You have a number of companies trying to balance the cost of innovation by expanding in the generics marketplace. That's the way to go. The potential for generics is very big. For instance, in the US, you have a growing ageing population spurring demand for generics (as they cannot afford expensive branded products). The demand for generics will continue to grow.

Are you on track to achieve $5 billion in sales by 2012?

We just crossed $1 billion, and $2 billion (by 2007) is on the way. We are on track.

ANCILLARY
Offshore Blues? Ha!

Wells: Irritant-measure

Companies are a lot less forthcoming about their desire to go offshore, says Bruce Wells, Global Director, Synovate ViewsCast, a customer feedback research firm. And there are no prizes for guessing why. In the midst of all this is one fragment that particularly grabs Wells. Most outsourced services providers focus on operational efficiencies and don't measure qualitative parameters like the extent of customer irritation with a particular accent. These are precisely the sort of factors that ViewsCast (Wells' customer feedback automation product) measures. Small wonder then that Wells is in the midst of hectic parleys with a clutch of Indian BPO firms. Chances are he'll strike gold.

-Priya Srinivasan

POPULISM
Wait Till Elections

Oil politics: Prices will head north

So much for petroleum Minister Ram Naik's repeated claim that public sector oil companies could set market-determined prices on a fortnightly basis. Since December 31, 2003, there has been no revision in the price of petrol and diesel. In the same period, the price of crude has jumped from $29 to the barrel to $33. This political expediency-remember, the elections are almost upon us-will cost the oil companies dear, says an executive at Indian Oil Corporation, putting the loss in the region of Rs 3,600 crore. If the price of crude in the international market stays above $29, then, expect a hike in petrol and diesel prices after the elections.

-Ashish Gupta