(L to R) Sanjeev Bikhchandani, Rashesh Shah and R. Subramanian; So far, the first two have struck it rich

R. Subramanian of Subhiksha has no clue about what inspired his batch from IIM Ahmedabad to become so entrepreneurial. Other than Subramanian, whose Subhiksha retail stores are popping up across the country well before the big boys' IIM-A's Class of 1989 includes Sanjeev Bikhchandani of InfoEdge (which operates Naukri.com) which recently went public in a blockbuster initial public offering (IPO) and Rashesh Shah of Edelweiss Capital which was recently valued at $500 million (Rs 2,250 crore) when the Government of Singapore Investment Corporation (GIC) and Galleon, a New York-based hedge fund, bought a 20 per cent stake in the company for $100 million (Rs 450 crore). Two members of this triad have brought in outside investors into their companies. Will the third follow in their steps? Subramanian avoids a direct answer. But market is rife with rumours of an impending IPO, or even an outright sale, most likely to Reliance (See Retail's Coming Face-off, Page 82)

But Subramanian is more comfortable talking of his batch. "I don't know what it was about us," says Subramanian, "I guess we all just wanted to do our own thing and, I think, have all fed off each others' success." Adds Shah: "It helps if others in your batch are also entrepreneurs, Subra (Subramanian), Bichhu (Bikhchndani) and I saw each other do well and that helped."

Of course, the opportunity cost of turning entrepreneur wasn't as high as it is today. Salaries, which seem to be defying the earth's escape velocity today, were modest back then. "When we started out, there was almost no career penalty if you decided to turn entrepreneur. You had very little to lose," Bikhchandani says. "My first job at Citibank after IIM-A paid me Rs 5,000 a month; it was very easy to chuck the job and decide to start something from a garage," says Subramanian. Shah agrees: "I worked with ICICI and was paid around Rs 3,000 a month-not a lot even by the standards of those days," he chuckles.

All three men consider themselves extremely fortunate to have graduated when they did. "Economic liberalisation began soon after we graduated and that made it an opportune time to turn entrepreneur," says Subramanian. "You also have to keep in mind that when we graduated, the stock exchanges were in the middle of their first major upswing," Shah points out.

Were they a special batch? "Every batch is special," says Shah, "but in a way, we were probably more entrepreneurial than others." Subramanian is a lot more assertive. "I don't know what it was, but our batch was special. Look at other contemporary batches around us; they had the same advantages that we had, but look at where we are," he says with a hint of pride.

How come all three have or a looking to raise funds for their respective companies? "You need people and capital to expand. I'm sure it's just a coincidence that all of us are raising funds around the same time," says Shah.

Bikhchandani and Shah have already been there and done that on this count. The question remains: will the third element of their triad follow suit?

-Kushan Mitra

Big Brother Wants to Control Net Access

The government is acquiring advanced tools to help control what you can and cannot see online. Are we in danger of becoming another China? Recently, the Bombay High Court admitted a petition from some noble soul who wanted the government to block access to Google's social networking service Orkut because some people had set up an "I Hate India" group online. Not so long ago, some over-enthusiastic bureaucrats in the central government went a step further and told India's Internet Service Providers to block access to most large blog domains leading to a blanket ban on popular blogging sites such as Blogspot and WordPress. Now, the government has acquired a new technology that will allow it to block sub-domains-which means instead of blocking Blogspot, it will be able to block a particular sub-domain of Blogspot. So, if some politician or minister doesn't like what someone has written on a blog (for example, if someone questions the government's decision to take such a patently idiotic step) he can have access to that blog blocked. Kiruba Shankar, a Chennai-based blogger, describes it simply: "It's stupid." But the point is: do the powers that be realise that?

-Kushan Mitra

Q&A
"We Want to Invest $1 Billion in India"

Marc Lasry, founder and Managing Partner of Avenue Capital Group, a private equity and distressed debt fund, was in India last fortnight as part of former us president Bill Clinton's entourage. He spoke to BT's Shalini S. Dagar on Avenue's plans for India. Excerpts:

Avenue's speciality is managing distressed assets. What are the specific skills that you bring to India?

In the US, our focus is on distressed assets, but outside the us, our focus is on "special situations" and on investing in good companies. The key difference between us and other private equity firms is that we understand debt and can work in multiple parts of the capital structure.

What are your investment plans for India?

Avenue manages assets valued at approximately $12 billion (Rs 54,000 crore) globally. We want to invest around $1 billion (Rs 4,500 crore) in India over the next few years. Our investment sizes can range from $5-10 million (Rs 22.5-45 crore) to $300-350 million (Rs 1,350-1,575 crore). We made our first investment in India earlier this year in Dr Naresh Trehan's Medicity Project. A second is underway in GPI Textiles.

Is the optimism about India a little ahead of the times?

No. The opportunity is quite real given the accelerating GDP. The high single-digit economic growth is three or four times that of many other countries. The challenge is to sustain it going forward.

Foreign Investors are Happy

Here's concrete evidence on why foreign investors are flocking to India. An overwhelming 69 per cent of them are making money here. A majority of them are also satisfied with procedural and operational issues in this country. Little wonder then, that 83 per cent, or 5 out of 6 investors, are considering expansion plans. The implication: more foreign direct investment inflows. The Federation of Indian Chambers of Commerce and Industry's (FICCI's) Annual Foreign Direct Investment Survey 2006, covering 76 foreign companies throws up this, and other interesting nuggets of information. Presented below are some of the survey findings:

-Amit Mukherjee

CRICINFO MOVES TO BANGALORE

Want more proof that India is the #1 market for world cricket? Cricinfo, arguably the most trusted resource on the sport, has relocated its global headquarters from London to Bangalore and announced plans of doubling its presence here. "Cricinfo has around 20 million unique online users per annum; of this, 60 per cent are Indians. In addition, the commercial opportunities around cricket in India are substantial," says Tom Gleeson, CEO, Wisden Group, the company that owns Cricinfo. As part of this initiative, Gleeson and several other key executives have relocated to India's IT capital. "India is a crucial market and our relocation here will enable us to build and grow our presence worldwide across our online, print and mobile platforms," he says, adding: "India is witnessing huge growth in internet, mobile telephony and interactive TV. This is creating growing demand for all types of cricket-related content."

Wisden is looking at opportunities to tap both the Indian market and talent pool. "Hawk-Eye Innovations (a specialist in ball-tracking technology for use in sports broadcasting and officiating, which Cricinfo acquired in June this year), intends to expand its activities in the field of sports technology and it will make sense for us to look at India as a development centre for these activities," he adds.

-Rahul Sachitanand

LSE FORUM HELD IN DELHI

The third London School of Economics Asia Forum was held in Delhi on December 7 and was attended by more than 600 alumni members from across the globe. Addressing the forum, Prime Minister Manmohan Singh said: "It is essential that the West should come to terms with the consequences of the rise of Asia. Just as the world accommodated the rejuvenation of Europe in the post-War world, it must now accommodate the rise of new Asian economies in the years that lie ahead."

The day-long event was devoted to three broad topics-Reforming Infrastructure; Governing Trade; and Moderating Society. Howard Davies, Director, LSE, announced that Sir Nicholas Stern, Head of the British Economic Service, will become the first holder of the IG Patel Chair at LSE. Patel, who passed away last year, was LSE's ninth director from 1984-90.

-Pallavi Srivastava

US Social Security Tax: Hope for Indian Pros

Professionals in the US have to pay a social security tax of about 22 per cent on their salaries. Indian professionals, who go to that country on short-term h1b visas, also have to pay this levy. But they do not get any benefits or refunds once they return to India as the benefits kick in only after paying the taxes for at least 10 years. The National Association of Software and Service Companies (Nasscom) estimates that Indian professionals in the US contribute $500 million (Rs 2,250 crore) every year as social security taxes without getting any benefits. Now, the two countries are working towards a "totalisation agreement" that will either exempt such professionals from having to pay taxes or find some way of compensating them for the same. "The agreement will ensure that Indians who have paid the tax in the us get some benefits in return," says a senior government official. India has already signed a similar agreement to this effect with Belgium and is in talks with The Netherlands and France to do the same.

-Amit Mukherjee