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Yechury with AAI workers:
Viva la solidaridad |
Harkishan
Singh Surjeet, the General Secretary of the Communist Party of India
(Marxist) CPI(M), may be the most powerful communist leader in India,
but circa 2004, it is Sitaram Yechury, a member of the party's politburo,
its highest decision-making body, who is, at once, the most articulate
voice and telegenic face of the movement. At a time when the party
holds 52 seats in the Lok Sabha, its highest ever, and supports
the ruling United Progressive Alliance, that makes Yechury one of
the most important and visible politicians in the country.
Just how important became evident on June 2,
a mere six days after the UPA's common minimum programme (CMP),
supposedly vetted by Yechury was released. Minister for Civil Aviation,
Praful Patel had just announced that the new government would go
ahead with the previous regime's proposal to modernise and privatise
the New Delhi and Mumbai airports with one change; private sector
participation would be capped at 49 per cent, not 74 per cent as
planned earlier. The employees of the Airports Authority of India
protested the move and joining them, for a few hours at Rajiv Gandhi
Bhawan, Safdarjung Airport in New Delhi was Yechury, an act that
belied Patel's insistence that the communist parties knew about
his proposal. Most newspapers carried a photograph of Yechury with
the protesting employees signaling to the world at large just where
the CPI(M) stood on the issue.
Then, the 52-year-old
Andhra born, Delhi-educated Yechury-he graduated in economics from
St Stephen's College and completed a masters degree in the same
discipline from Jawaharlal Nehru University-has always been clear
about his beliefs. Foreign investment, he has repeatedly spelt out,
is welcome as long as it augments the country's productive capacities,
serves to upgrade technology, and results in the creation of jobs.
Among the first to dismiss the previous regime's India Shining campaign
as the creation of slick public relations, he maintained that people
were going hungry despite the government's granaries overflowing
with grain. And his, and his party's philosophy on disinvestment
in reflected in the UPA's CMP. Profit-making Navratnas-think ONGC,
GAIL (India) Ltd, NTPC, BHEL and the like-will not be privatised;
middle-level public sector companies that are profitable will be
allowed to strengthen themselves by raising money from the market;
and loss-making public sector firms will be sold only after all
attempts to revive them have failed.
Many of these beliefs may fly in the face of
the logic behind the economics of a free market, but with a government
receptive to inputs from the CPI(M) in power, they will no doubt
influence India's economic agenda. There is also a quirky happenstance
in Yechury's finest hour-that is what this is-coinciding with the
rise of the Telengana Rashtra Samithi, which has five seats in the
Lok Sabha and is part of the UPA. In 1969, it was violence surrounding
the demand for a separate Telengana state that forced his family
to shift to Delhi. Had he not moved to Delhi, who knows what the
head of the CPI(M)'s international department and editor of People's
Democracy would be up to now?
-Ashish Gupta
Buy
In or Sell Out?
A Philippines-based BPO outfit eyes the Indian
market.
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Alfredo I. Ayala: Advantage
Philippines |
When
IBM recently bought out Daksh eServices, one of the many surprises
about that deal was that Daksh itself was apparently scouting for
takeovers (and planning an IPO). A few months prior to getting snapped
up by Big Blue, the Daksh founders were reportedly scrambling to
buy out a Philippines-based call centre company, eTelecare International.
Those plans, if at all concrete, didn't of course pan out, but what
is promising to play out is eTelecare's entry into the Indian market,
any which way, by the year-end. ''We have multiple options for entry.
It could be via acquisitions, a greenfield venture or a partnership,''
points out Alfredo I. Ayala, Chairman & CEO, eTelecare, which
was founded in late 1999, by two alumni of McKinsey's call centre
consultancy.
As Ayala, who visited Delhi, Mumbai and Bangalore
last fortnight, sees it, India and the Philippines have complementary
strengths: the Philippines is perceived to be more attuned to US
culture, excels at complex communication and interactions and boasts
excellent telecom infrastructure, whilst India brings along with
it intense technical and analytical skills. And now, with many of
eTelecare's clients-the list includes Fortune 100 financial services
providers and electronics manufacturers-indicating they're more
comfortable with a presence in two locations, it makes immense sense
for Ayala to look at India. What's more, the outsourcing market
in the Philippines, estimated at $350 million (Rs 1,575 crore) last
year, is much smaller than India's which stood at over $2.3 billion
(Rs 10,350 crore).
The Philippines is also known for its lower
(than India) attrition rates, and that's yet another reason for
a number of global firms, from Accenture to Citibank to AIG to Amex,
to set up delivery centres in that country. That's also why an Indian
BPO like ICICI OneSource is reported to be planning a centre in
the Philippines and Hinduja TMT an acquisition.
eTelecare, meantime has appointed Edelweiss
Capital to assist in working out the right strategy for India. Ayala
isn't willing to reveal too much, but being a part of a larger BPO
major (read: getting acquired) isn't something you could rule out.
A few months ago reports indicated that eTelecare was in talks with
Wipro-Spectramind and Mphasis' BPO subsidiary MsourcE. Today, though,
eTelecare is a much bigger player, having last fortnight acquired
Phase 2 Solutions, a US call centre company. With Phase 2 in the
bag, eTelecare expects revenues of $125 million (Rs 562.5 crore)
in 2004, and Ayala claims he's the largest Asia-based call centre
company in Asia. Any takers?
-Brian Carvalho
4-WHEELS
Cars
& AP
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Y.S.R. Reddy: Out of the
race |
We can consider such
projects when the state's coffers are full and people get rich and
fat and suffer from indigestion.'' With these evocative words, Andhra
Pradesh Chief Minister Y.S. Rajashekhara Reddy effectively derailed
Hyderabad's chances of hosting a Formula 1 race in 2007, something
former cm Chandrababu Naidu had set his heart on (he had convinced
F1's Bernie Ecclestone to agree to a race in the capital in 2007).
However, keen to be seen as a destination for auto companies, the
state is aggressively wooing German car major Volkswagen, which
is considering investing around Rs 2,300 crore in a manufacturing
facility in India. "Andhra's USP would be the location (the
port city of Vizag) with a modern container terminal," says
K.V. Rao, Principal Secretary of the state and Commissioner for
Industrial Promotion. "But it is up to them to decide."
The state has also initiated talks with another German major BMW.
Will these make up for not having a Formula 1 race?
-E. Kumar Sharma
Red Menace? Not Really
Industry need not fear a revival of trade unionism.
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Trade Unions: A shot in the
arm |
No one really knows
the exact date, but sometime in the 1990s, the trade union lost
its relevance in most parts of the country. However, with the Communist
Part of India, and Communist Party of India, Marxist winning an
unprecedented 53 seats in the elections to India's fourteenth Lok
Sabha, and, better still, supporting the ruling United Progressive
Alliance without really being part of the government, most unions
seem suffused with renewed vigour. "Unless globalisation is
changed (sic), trade unions will fight against the attacks let loose
by managements and the government," thunders Chittabrata Majumdar,
General Secretary, Centre of Indian Trade Unions, the apex body
of Indian trade unions. Industry, however, isn't unduly perturbed.
"We give full credit to trade unions for the maturity they
have displayed in appreciating the pressures of competition,"
says N. Srinivasan, Director General designate, Confederation of
Indian Industry. "We do not see any increased trade union activity
that will negatively impact industry performance." Maturity
seems to be the word of the moment with Raman Kumar, Executive Director,
Personnel, sail, a public sector steel major that has just turned
profitable claiming that the "maturity of the trade union has
been a strong supporting factor in the implementation of our cost
reduction programme." If a man who has seen the back of some
45,000 workers over the past five years has no cause for concern,
nor do we.
-Aditya Wali
Plasma Or LCD?
Here's how you can choose between the most contemporary
television technologies.
Cost: Plasma TVs are expensive and cost
between Rs 3.8 lakh and Rs 14 lakh. LCD TVs are cheaper and can
be had for anything between Rs 65,000 and Rs 2.8 lakh.
Screen width: Plasma, with screen sizes
ranging from 30 inches to 63 inches, beats LCD (15 to 32 inches)
hollow.
Viewing angle: Plasma offers much better
viewing angles compared to LCD, making it ideal for large-room viewing.
Colour: Plasma offer greater range of
colours.
Brightness and contrast: LCD offers
superior brightness and contrast.
Maintenance: Plasma screens can be damaged
by static images, so if you're the kind that loves freeze-frame
action, avoid them. And plasma screens may also not work well at
high altitudes.
Power: Plasma TVs consume almost twice
as much electric power as LCD TVs.
Longevity: LCD TVs have twice the lifespan
of plasma TVs.
Handling: Plasma TVs are heavier, more
fragile and more difficult to install than LCD TVs.
Last Word: Strangely enough, plasma
TVs outsell LCD TVs 8:2 in India. Our call: go for LCDs.
-Compiled by Alokesh Bhattacharyya
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