IIPM ARTICLE BROADCAST: August 2010

Saturday, August 28, 2010

IIPM Career News - Career opportunities for Young MBAs in Today’s corporate world - Symposium at IIPM Bhubaneshwar

On 26th June 2010, 4Ps Club of IIPM Bhubaneshwar organized a symposium on the topic, “Career opportunities for Young MBAs in Today’s corporate world”. The guests for the event were Dr. Saroj Kumar Mahapatra - Senior General Manager HR, POSCO India Ltd, Mr. Binod Gopal Mukherjee, Zonal Head Religare Securities and Prof. T.K. Chatterjee who played the role of moderator in the entire event. Both the speakers had stressed on the core importance of the marketing vertical of their respective industries. Dr. Mahapatra emphasized on special importance of B2B marketing process and the careers associated with it where as Mr. Mukherjee threw some more light on how challenging the careers in B2C marketing process are, taking Broking industry as a special case. It was a real value addition for the young & dynamic future Managers as they got a 360 degree picture of their prospective careers in the corporate world.

Friday, August 27, 2010

IIPM Broadcast - Investment Summit In Indian States - IIPM Ahmedabad

The objective of the event was to harness the knowledge of Management students and make them understand and learn- how one can attract investors to a particular state/region/territory by communicating the Value of their state to the investors, which includes improved transport system, better skilled and semi-skilled labor, safety, security, health, emergency services, accommodation and tourism facilities which all are some lasting legacies of Indian states. The event basically focused on ways to uncover the knowledge,creativity and talent of management students who have just started their management studies .

Students had to present the scope of the given state. Also, they had to market their state with respect to the available natural resources, which is a key economic driver. Ideal representation of the cultural aspects can attract investors in their State.

Ecstatic Celebration erupted at IIPM Ahmedabad for the event Investment summit in India. The Event was very colorful and full of Joy, filled with the colors of the different states and tastes of the different culture of Indian states. Students were very participative and had put lots of hard work to make the event possible. The Event was all about Promoting the state in front of Juries and to convince them that their state is the best place to invest.

Students were to find a particular Industry, which would have immense scope for growth. They have to market their project with respect to the availability of the Natural resources as well as the other resources available in the state like, Road, Rail, Airport and Power resources. Economic drivers and the state’s cultural aspects as well as the Literacy rate of the particular state.

All in all the event was a Joy to watch, students of IIPM are very creative, they have shown how Management aspirants can learn real life Management Learning through this kind of Entertaining event without having any stress.

IIPM Best B School in India - Nutrivita PRESENTS 100 MARKETING BRAINS THAT MOVE AND SHAKE INDIA

K. K. Chutani

Sr. General Manager – Marketing, Dabur India Ltd.

Consumers today are becoming extremely health-conscious and are looking for healthy and non-traditional gifting options. In this scenario, we decided to roll out our first Diwali offering of a healthy gift in 2002 and it was a welcome change from the calorie-laden traditional gifting options. Our gift-packs offered the best combinations of taste and nutrition. We did our research bit, while continuing our focus on marketing. With our gift packs, we offered consumers a chance to gift their loved ones good health. It was new to us and everyone!

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

“We will change your outlook” – The Sunday Indian on B-SCHOOL RANKING SCAMSTERS EXPOSED! A must read…

The Sunday Indian:-

B-SCHOOL RANKING SCAMSTERS EXPOSED!

For Exclusive Footage by Sunday Indian Click Here

Outlook Magazine’s B School Ranking Scam Exposed

Business Standard Exposes the Outlook Magazine Money Editor

Don’t trust the Indian Media!

IIPM enters into media education

IIPM makes record 10,000 placements in five years

TSI exposes b school ranking scamsters Mahesh Peri of Career 360 and Premchand Palety of C fore. – For Complete Sting Operation Video Click Here

Pioneer Exposes the fraud called Mahesh Sharma and Mahesh Peri of Career 360 and Barbel Schwertfeger of mba-channel.com

IIPM: An intriguing story of growth and envy

Prof Arindam Chaudhuri of IIPM on MF HUSAIN‎

Thursday, August 26, 2010

IIPM 4Ps Business & Marketing - Nutrivita PRESENTS 100 MARKETING BRAINS THAT MOVE AND SHAKE INDIA

Anupam Dutta

MD, Kellogg India

It was in June 2007 when Anupam Dutta bid adieu to Britannia New Zealand Foods where he was the Head of Dairy Business (and instrumental in the success of Britannia cheese), and joined Kellogg India as its Managing Director. It did not take long for Anupam to understand the dynamics of the ready-to-eat breakfast category and the core philosophy of Kellogg – healthy eating. Soon after joining, Anupam forayed into the weight management market by launching Special K, a new brand of cornflakes to help women lose weight. Sensing the potential in the lower strata of the society, Anupam also launched K-paks for Rs.10.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
“We will change your outlook” - The Sunday Indian on B-SCHOOL RANKING SCAMSTERS EXPOSED! A must read...
The Sunday Indian:-
B-SCHOOL RANKING SCAMSTERS EXPOSED!
For Exclusive Footage by Sunday Indian Click Here

Outlook Magazine's B School Ranking Scam Exposed
Business Standard Exposes the Outlook Magazine Money Editor
Don't trust the Indian Media!

IIPM enters into media education
IIPM makes record 10,000 placements in five years
TSI exposes b school ranking scamsters Mahesh Peri of Career 360 and Premchand Palety of C fore. - For Complete Sting Operation Video Click Here
Pioneer Exposes the fraud called Mahesh Sharma and Mahesh Peri of Career 360 and Barbel Schwertfeger of mba-channel.com
IIPM: An intriguing story of growth and envy
Prof Arindam Chaudhuri of IIPM on MF HUSAIN‎

Wednesday, August 25, 2010

IIPM 4Ps Business & Marketing - Nutrivita PRESENTS 100 MARKETING BRAINS THAT MOVE AND SHAKE INDIA

Rameet Arora

Head – Marketing, Colors-Viacom18

I have many memorable marketing moments at Colors, but two stand out. First of course, was the launch of Colors. A mass channel, born out of possibly the most successful media launch we’ve known in a long long time. The second was the launch of Abhishek Aaram Classes, an idea that we have backed to the hilt. It was a big idea that pushed the envelope on the launch of Bingo. It was a phenomenally integrated campaign spanning many mediums.

Monday, August 23, 2010

Nutrivita PRESENTS 100 MARKETING BRAINS THAT MOVE AND SHAKE INDIA

Anisha Motwani

CMO, Max New York Life

My best marketing moment actually came soon after my joining Max New York Life. Insurance industry is quite unique and special. For some, it is a finance industry, for some others it’s about Protection and Security. But for me, it’s an industry that deals with the business of life. The best moment was therefore one where I got the opportunity to introduce a radically new brand proposition “Karo Zyaada Ka Iraada”. This is a salute to all those who happily challenge status quo and push boundaries for a bigger, brighter tomorrow. MNYL intends to awaken today’s India to re-look at itself, its realities and possibilities. It appears at a time when we as people have realized that we’d be happier if we could articulate and then live our ambitions.

Friday, August 20, 2010

COCA COLA TOPPLED

INTERNET SEARCH LEADER Google has once again proved that it has gained generic status. Despite using minimal advertising (see related story in this section), Google has toppled Coca Cola to become the world’s most valuable brand. Wal-Mart remains the Numero Uno though. The ranking was done by Brand Finance, a UK-based leading brand valuation consultancy. The company placed Google above many eminent brands such as GE, IBM and Microsoft. The rankings were based on parameters such as Brand value, Brand ratings and Enterprise value. Coca Cola, IBM and Microsoft slid one rank lower compared to 2009. The key driver to improve a company’s brand is innovation and that’s where technology brands score very well. The ranking calculates the value a brand is expected to generate for its shareholders in the future.

Amir Moin

Thursday, August 19, 2010

THE FUSION OF A TRIBE, QUITE DIGITALLY

The downturn has certainly made companies more sensitive to the returns they achieve from their marketing investment and has sharpened their focus on the online medium. Pawan Goyal, MD – Asia and Middle East, Tribal Fusion explains ways to deal with the challenges of space, cost, impact and targeting that are associated with digital marketing

As the online advertising market in India is poised to witness a phenomenal 27% growth per annum from 2008-13 (as per industry forecasts), it is imperative that the message reaches the right online customer at the right time for advertisers to achieve expected results. Pawan Goyal, Managing Director – Asia and Middle East, Tribal Fusion (a digital marketing solutions company) in an exclusive interaction with 4Ps B&M talks about how online advertising can be utilised with greater efficiency.

Today, an integrated marketing communication plan involves all aspects of marketing. What are the key areas that Tribal Fusion focuses on for the marketing of a company?
At Tribal Fusion, we do not believe in a ‘one-size-fit-all’ approach. Client needs and objectives vary from campaign to campaign and from advertiser to advertiser. We enable advertisers to reach the right audience with the right message. We work hand-in-hand with advertisers to build campaigns deeply customised to their specific objectives and goals. By focusing on specific campaign objectives, leveraging industry-specific knowledge of ‘what works’ and offering advertisers a wide range of robust tools for messaging, content and targeting, we provide them with better solutions that drive greater results.

What is the total size of the digital marketing industry? Where do you position Tribal Fusion in this sector?
There are not many authentic sources to show the total size of the digital marketing solutions industry in India, but undoubtedly Internet Display advertising is fast gaining acceptance in the country and is steadily robbing the market share from traditional media. We are a technology-driven media services company that delivers innovative products and services to meet the demands of advertisers and publishers. We collaborate with top quality web publishers to provide advertisers with targeted ad placements. Our publishing partners provide advertisers with a brand-safe advertising environment, while our industry-leading technology platform optimises campaigns in real time, helping them to connect better with their target audience.

It has become imperative for businesses to adopt aggressive promotional strategies to suit to newer ways of browsing and shopping. How do you cater to this?
Online advertising is an efficient and effective advertising option because it enables advertisers to focus more specifically on the target markets and audiences – something they cannot do with television or newspaper advertising. The media and creative optimisation technology that this medium offers further enables them to target the audience with the right message in an environment relevant to them.

Wednesday, August 18, 2010

PATRIOTISM AS PROP

Do the dozens of ads, religiously flooding the publications every Republic and Independence Day, make any sense or carry any weight? 4Ps B&M spoke to some evolved souls to seek answers

Come Republic Day, or Independence Day, or the birth or death anniversaries of Gandhi or Nehru – and a zillion ads, with differing degrees of engagement, conviction or focus, blitz our publications. Why? What is their basic agenda or objective? Do they achieve ‘it’? Aren’t they wasting the tax-payers’ money? Does anybody care to see them? In short, who is doing what for whom?

Leo Burnett’s hi-profile National Creative Director (NCD), Pops Sridhar is first off the block. He summarily dismisses most of these ads as “sheer tokenism, sycophancy and outstanding examples of how not to project landmark events of national importance!” However, he believes, that these affairs – for the evolved and sensitive communication practitioner – present amazing opportunities to showcase the nation’s new-found pride and confidence as being up there with the best. Celebrate their sense of self-reliance, their glowing image in the League of Nations as a vibrant democracy making huge strides, deleting forever their erstwhile complex of the white man or their goods and services. “I am not sure this has been done with any consistency. Connecting the core values of a product or service with the nation’s vision and values can be a fascinating and exciting challenge, if leveraged intelligently. However, there should be a brand-fit – like the patriotic ‘I don’t want to go abroad’ Hero Honda TVC or Hamara Bajaj, Mile Sur... TVCs – otherwise, it will appear corny, clichéd and contrived like most ads of this genre.”

Political commentator and media personality Paranjoy Guhathakurta adds his spin to the debate. He agrees that there is definitely mega-posturing and wearing-patriotism-on-my-sleeves factor on an over-drive “as clearly manifest in these rather embarrassingly inane ads. They can only be matched by the hysterical brand of patriotism emerging from the NRI fraternity. Distance – for them – lends enchantment, I guess! However, despite this lapse and the fact that a disturbing divide and disparity continues to define our amazingly complex land, we continue to remain a solid democracy and zap the world! This needs to be recognised, understood and celebrated. Seen in that light, these ads are doing their job for whatever they are worth. They may not be the most creative, imaginative and professional examples of advertising excellence, but the intent is honourable and well-meaning.”

Tuesday, August 17, 2010

WHEN SMALL IS BEAUTIFUL

First Rajshri Productions, then Shah Rukh’s Red Chillies Entertainment and now Yash Raj Films. What is it that’s bringing these movie mavericks to the idiot box? 4Ps B&M does a checkout with some eminent industry insiders...

In fact, in the West, it’s already a well established trend where all big studios have a strong TV arm. Following the same mantra, Fox TV has recently made its debut in the Indian entertainment space with a game show ‘Bingo’ starring Abhishek Bachchan, currently on-air on Colors. So the question that pops in ones’ mind is what value addition will these movie mavericks bring to the idiot box?

Industry experts are unanimous that it will take up higher the quality of production of TV shows. Santosh Nair, CEO, UTV, admits to 4Ps B&M that the technical quality, the look, the feel and the grandeur of TV shows will definitely go up with these filmmakers getting into the business. But then, that alone will not suffice; content remains king.

Zee TV’s Motwani agrees with Nair and feels that filmmakers aren’t familiar with the basics of story telling on TV. He says, “They are habitual of telling a story in three hours. There is one beginning and one end. But in television, we have to look at the macro story for the day, for the week, for the month and so on. That is one thing filmmakers need to adapt to.”

Thus, not only will getting the pulse of the television audience be the key to success for these filmmakers on the small screen but also maintaining a unique identity and serving something different at the same time. YRF’s Gangjee agrees, “Our biggest challenge was to try and bring a little bit of film into television. We felt that since some great shows already existed on TV, there was really no point in replicating these. We wanted to try and bring about some kind of difference in television content and hopefully bring in a large part of the audience who are currently looking for options and who may not be regular TV viewers.”

Monday, August 16, 2010

JINGALALA EFFECT: PAUSE, STOP AND REWIND!

Its high price notwithstanding, Tata Sky+ in a very short span of time was able to create a significant place in the consumer’s life, next only to their mobile phones

TATA SKY+

CAMPAIGN: Tata Sky+ launch

AGENCY: Ogilvy India

OBJECTIVE: Tata Sky believed that their product stood for the discerning individuals and to reinforce that image in the minds of the target audience, the company decided to launch the first Personal Video Recorder (PVR) box (branded Tata Sky+) in the country at a price of Rs.9,999. The task at hand was not only to sell a fixed number of the new Tata Sky+ but also to help retain the market share of the base box.

STRATEGIC CHALLENGE: The latter part of 2008 saw the entry of two major telecom players in the Indian DTH space – Airtel Digital & Big TV – and both these players with deep pockets were known for playing cutting price wars while marketing their offerings. At that time, Tata Sky (the second largest player) was already charging a 40-50% premium for its base model. The communication had to help Tata Sky hold on to its market share without shedding its premium positioning and to continue to rake in the same kind of margins.

BIG IDEA: Tata Sky+ was the first PVR box in the country and its USPs were features like recording, rewinding and pausing live television. The idea was to communicate this USP and at the same time ensure that this new set top box does not get positioned as a product only for the tech freaks!

EXECUTION: The first phase of the campaign consisted of creating curiosity about this new product and hence various teasers featuring Aamir Khan were launched. The next phase was the actual launch phase that communicated what this new product was. The final stage was the follow-up phase, which talks about real life application of the product and how it helps them in consumers lives. [For example in one TVC, Aamir talks to his mom-in-law in a leisurely manner as he knows that his live football match is being recorded on Tata Sky+].

EFFECTIVENESS: The campaign was able to meet all quantitative targets that were set for the PVR box as well as the base box. Additionally, a consumer survey that was done in the homes that had Tata Sky+ installed, acknowledged it as the most important consumer electronic product in their homes, next only to their mobile phones.

Friday, August 13, 2010

Will the lion roar again?

Slowdown had a sobering effect on DLF’s meteoric rise in the early years of this decade. With a new look and renewed vigour, the company attempts to claw its way back to its glory days. by Virat Bahri

Five odd years is a terribly long wait. But it would be worth it for this 17.5 acre plot of land in Lower Parel, Mumbai, which would soon be home to 90-floor super luxury tower. Bought by DLF in 2005 from National Textile Corporation for over Rs.7 billion, the land hasn’t witnessed realty action since then; with the downturn being the obvious spanner in the works. DLF planned a mall initially, but has now decided in favour of residential accommodation with the 2000-odd flats in the tower to cost Rs.50-100 million each with targeted revenue of Rs.150 billion for the company.

2006 was a different era. At that time, an unlisted DLF was hitting all the high gears with surging fortunes in residential, commercial and retail. Then came investments into new businesses – hotels, SEZs, infrastructure, IT parks, next generation malls, asset management… there just seemed to be no end, more certainly so when news of the IPO came up, fuelling speculations that K. P. Singh would be the world’s richest man. The $2.2 billion IPO was launched in 2007, and K. P. Singh was ranked 62 on the Forbes’ list of global richest that year.

India’s realty sector was seeing rising valuations, but it wasn’t really the American bubble. The fact that realty was a lagging indicator for the booming economy had a lot to do with it. But with the slowdown, sentiments went turn turtle across – consumers, banks, corporates, retail. Realtors who had assumed huge debts in the bull run were sitting on land that would provide cash flows way ahead into the future and got further stuck when takers for their existing products dwindled. DLF’s revenues on a standalone basis in FY 2008-09 were Rs.28.28 billion, a dizzying drop of around 49% yoy and profits fell by around 40% to Rs.15.47 billion.

A company like DLF only understands too well that market speculation and sentiment are fickle by nature and are not the true parameters on which a company can judge its merits, or demerits for that matter. But then, understanding how they are playing out at any given point of time is crucial to cushion oneself against the shocks of a viciously cyclical business like real estate. As the company came face to face with a calamitous situation in 2008, it had two prerogatives – the first one was to steer the ship out of the immediate storm and the second one was to take cognizance of its priorities and redefine its business model for the future.

DLF isn’t out of the storm yet. It saw revenues drop by a further 15% to Rs.24 billion and profits falling by 50% to Rs.7.7 billion yoy for FY 2009-10. They missed the target by 16%, and achieved 12.6 million sq. ft. (msf) with an average realisation of Rs.5700 per sq. ft. But as per DLF Limited Vice Chairman Rajiv Singh the bottom is already behind them. He commented on the results, “The overall economic growth, improved liquidity coupled with buyers’ sentiments turning positive, led to a buoyant demand for our projects across segments...” Q4 has been a visible sign of hope with consolidated revenues at Rs.21.46 billion up by 59% yoy. DLF Group Executive Director Rajeev Talwar points out in an exclusive interaction with B&E (featured after this story), “Construction in the last 1 year, which had dropped down from peak levels of 65-70 msf to 40-41 msf has now picked up again to around 56 msf; an increase of around 40%.” And buoyed by the general sense of revival in the Indian economy, DLF expects to rid itself of the devils of downturn for good. B&E analyses how the market leader has evolved in the midst of slowdown and details the prospects for the company in the coming year.

Thursday, August 12, 2010

An outrageous bill for NRIs

A ludicrous Bill for voting rights of Non Resident Indians is cleared by the Group of Ministers

The Indian government’s pre-occupation with the wellbeing of NRIs is nothing new, rolling out red carpets to them in anticipation of their contribution towards our growth and prosperity. Historically, the investment of NRIs has been considered important for India – since the commencement of liberalization back in early 1990s – for psychological reasons surely (the goodwill it generates in overseas corporate investors who employ Indians or come across them in the normal course) but more for the actual money remittances by NRIs; according to Morgan Stanley, even two years back, NRI remittances were 260% of net FDI and 140% of portfolio investment into India. The figures are mammoth!

Therefore, it was quite surprising that for the past many years, NRIs were actually not allowed to either contest in national elections or even to vote. In its attempt to undo this queasy legislation, the government has drafted a bill through the Group of Ministers (GoM) to allow NRIs to vote. After four years of actually being drafted, the bill in its current form, called the Representation of People’s Bill, will be placed in the monsoon session of the Parliament. Will the new bill, if passed, allow NRIs to vote? Yes. But before one starts celebrating, the bad news is that the bill strangely enforces NRIs to be physically present in their own constituency back home to be able to cast their votes!

Clearly, after four years of dillydallying, this seems to be the most haphazard method of encouraging NRIs to vote. How does one expect 2.4 crore NRIs to fly back to India simply to vote? Overseas Indian Affairs Minister, Vayalar Ravi said, “There is no question of postal ballots because bogus voting will be a concern.” Why couldn’t the government then think of allowing NRIs to vote in their respective embassies? Is there a fear of educated voters finally voting?

Wednesday, August 11, 2010

Who do you think is responsible for Price Rise?

The Central government has been held widely responsible but more people have still held black marketing and hoarding as the principal reason. Rising prices of essential goods including foodstuff and fuel has hit both low and middle income groups. It is widely believed that the Union agriculture ministry and the state governments did not play any proactive role to alleviate people's hardship. The Opposition BJP has also accused the Prime Minister of turning a blind eye to the problem for the sake of coalition politics.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
“We will change your outlook” - The Sunday Indian on B-SCHOOL RANKING SCAMSTERS EXPOSED! A must read...
The Sunday Indian:-
B-SCHOOL RANKING SCAMSTERS EXPOSED!
For Exclusive Footage by Sunday Indian Click Here

Outlook Magazine's B School Ranking Scam Exposed
Business Standard Exposes the Outlook Magazine Money Editor
Don't trust the Indian Media!

IIPM enters into media education
IIPM makes record 10,000 placements in five years
TSI exposes b school ranking scamsters Mahesh Peri of Career 360 and Premchand Palety of C fore. - For Complete Sting Operation Video Click Here
Pioneer Exposes the fraud called Mahesh Sharma and Mahesh Peri of Career 360 and Barbel Schwertfeger of mba-channel.com
IIPM: An intriguing story of growth and envy
Prof Arindam Chaudhuri of IIPM on MF HUSAIN‎

Tuesday, August 10, 2010

Being Human

Recently, actor Salman Khan was shooting in Mahabaleshwar, and 30 children from a neighbouring village walked for two hours in the hope to catch a glimpse of the super star. When Salman heard about the children, he went and met them, played with them, allowed them to watch the shooting and had some food and water brought in for the kids. What’s more, he asked his assistant to go to a nearby market and get bicycles for all 30 of the children so that they wouldn’t have to walk back home! Now that’s how one rides straight into people’shearts!

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
“We will change your outlook” - The Sunday Indian on B-SCHOOL RANKING SCAMSTERS EXPOSED! A must read...
The Sunday Indian:-
B-SCHOOL RANKING SCAMSTERS EXPOSED!
For Exclusive Footage by Sunday Indian Click Here

Outlook Magazine's B School Ranking Scam Exposed
Business Standard Exposes the Outlook Magazine Money Editor
Don't trust the Indian Media!

IIPM enters into media education
IIPM makes record 10,000 placements in five years
TSI exposes b school ranking scamsters Mahesh Peri of Career 360 and Premchand Palety of C fore. - For Complete Sting Operation Video Click Here
Pioneer Exposes the fraud called Mahesh Sharma and Mahesh Peri of Career 360 and Barbel Schwertfeger of mba-channel.com
IIPM: An intriguing story of growth and envy
Prof Arindam Chaudhuri of IIPM on MF HUSAIN‎

Monday, August 09, 2010

The curious case of gourmet food

While many international restaurant brands are already in India, a host of others are lining up to commence operations. But almost every CEO B&E met for this story lamented the over-policing by the government... We take a quantitative stock analysis! by Vareen Gadhoke Ray & Swati Sharma

This growth has had several socio-economic implications, in terms of employment opportunities to a large populace, consumption of goods & services of other players in the food chain and revenues contributed to the government kitty. Take this, on an average, a mid-size restaurant of a seating capacity of 80 people in India employs about 70-80 individuals (directly or indirectly). However, a large sized restaurant can employ about 100-120 people per outlet. Overall, the industry employs around five million people directly (as per National Sample Survey Organisation), in addition to many more who are employed with the ancillary industries and various support functions like logistics suppliers. This figure is further expected to increase to approximately 20 million by 2015, taking into account the growth the restaurant industry would be witnessing.

The Plush Palate

The restaurant industry contributes to the economy in myriad ways, from employment to tax revenues, to being a buyer of goods & services from several other industries. Moreover, its contribution to the overall delight of consumers is undeniable, with eating out being one of the top three leisure activities enjoyed by Indians across the country (as per India Leisure and Entertainment Report 2008-09, The Knowledge Company). Industry players tell us how one factor that has contributed to the same are the extended hours that restaurants are willing to be open for. Even a QSR like McDonald's is changing to that newish triviality. “We plan to keep our stores open from 7am till midnight enhancing convenience for consumers,” says Vikram Bakshi, MD, McDonald’s India.

With increase in disposable incomes of the average Indian consumer, the market size and potential of restaurants is only expected to rapidly grow in the future. The propensity to eat out increases with affluence levels; however, eating out is also a very prominent leisure activity among the lower SECs as well. States Gaurav Jain, Director, RTC Restaurants (that owns Sbarro & Ruby Tuesday), “Eating out is directly related with affluence. People at all levels of society are looking at an experience; a good time; a change when they go out.”

Consumers are travelling more often and demand innovation. Mexican, Thai, Korean & Japanese are the most popular newer international cuisines; even more niche ones like Malay & Lebanese. Both Indian and international cuisines and cooking styles are learning and benefiting from each other. International chains like McDonald’s & KFC are introducing local tastes and flavours. At the same time, restaurants such as Bikanerwala & Haldiram’s have learned from western counterparts in terms of selling traditional road-side cuisines and dishes in a clean and hygienic manner through commercial modern format set-ups.

The Equity Gameplan

Anticipating a further boom in the domestic consumption story, a number of private equity deals have been finalised in the restaurant space. The most recent equity deal concluded was Coffee Day Holdings, where three PE major – New Silk Route, Kohlberg Kravis Roberts & Standard Chartered PE have invested about Rs.8 billion for around 25% stake in the company. Other PE players active in the Indian restaurant business are Kotecha Capital (Rs.5 billion) Indivision (Rs.1.5 billion) and SAIF Partners (Rs.900 million).

Apart from PE, companies are trying other possible routes to raise capital. Fast food chain, Domino’s Pizza has recently had a successful IPO and raised close to Rs.12 billion, becoming the first restaurant company to go public in India.