C O N T E N T. 06 Editorial. 15 Publicity: Made in China. 16 What can we do to reclaim. reforms is closing fast

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4 C O N T E N T 06 Editorial 08 When Swaraj blooms in this Kerala village 12 Is a wind of change blowing over Kerala? 15 Publicity: Made in China 16 What can we do to reclaim the grass root level democracy? 18 Modi s window of opportunity to bring in reforms is closing fast 20 India could ve been hardware leader, regrets Narayana Murthy 22 MSME and the cost edge 24 Transformer and switchgear industry in India waiting to take off 26 High standards of Design, need of the hour in Kerala 28 Chamber events 30 Unique Personal Safety Enabler AVA Launched 31 Still beyond the boundary, why? 32 The Child - the man creator 34 Middle class wealth up 150% in India since E-commerce hype masks heavy losses 40 Be one with the Nature 42 Should India be worried about Trans-Pacific partnership? 44 The Middle East and global risk 46 New launches 2015: It s raining cars 50 News makers 04 Kerala Chamber Business News

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6 Managing Editor Editorial Board Secretary,KCCI Media Manager K.N.Marzook K.M. Abdulla Biju C. Cherian Dr.Thomas Nechupadam Rajesh Nair A.J.Rajan, I.A.S (Retd.) Mohammed Salu G.Venugopal K.Balakrishnan M.J.Avarachan Edited, conceived and designed by Printed at Sterling Print House, Ernakulam Vol. No. VI Issue No. I Price Rs. 25 The views and opinions expressed herein are not necessarily those of Kerala Chamber of Commerce and Industry SOUTHERN REGION TC 26/114 (38), 3rd Floor Capitol Centre, Statue Jn., M. G. Road, Trivandrum. Ph: infotvm@keralachamber.in NORTHERN REGION Khaleej Mall, Bypass Road, Govindapuram, Calicut Ph: infoclt@keralachamber.in COCHIN EXIM HELP CENTRE 'Ninans', V Cross Road, W. Island, Cochin Ph: chambereximhelp@keralachamber.in COCHIN AIRPORT HELP CENTRE Space No:16, Canopy Retail Building CIAL, Nedumbassery. Ph : cokeximhelp@keralachamber.in CALICUT EXIM HELP CENTRE KSIE Cargo Complex, Room No. 6, Calicut Airport, Karipur PO, Malappuram Ph: E mail : clteximhelp@keralachamber.in TRIVANDRUM EXIM HELP CENTRE KSIE Air Cargo Complex (Exports) KSEB Jn., Chackai, Trivandrum Ph: E mail : tvmeximhelp@keralachamber.in WALAYAR CHECK POST HELP CENTRE Walayar, Palakkad Ph: , , kccivallayar@gmail.com VAZHIKKADAVU CHECK POST HELP CENTRE Room No: 4/693A, Near Vazhikkadavu Sales Tax Check Post, Annamari, Vazhikkadavu P O, Malappuram Ph: E- mail : kcci.vazhikadav@gmail.com AMARAVILA CHECK POST HELP CENTRE Shop No: 228/11, Opp: Checkpost Amaravila.P.O, Neyyattinkara, Trivandrum Ph: , E- mail : kcciamaravila@keralachamber.in Let s Call for Cleansing Our Political System With another election on our door steps, it will be apt to review the last elections and to see how the political parties have fulfilled their assurances. Just have a look at the political manifestoes of UDF and LDF in the 2010 elections. Then you can see the hollowness of high voltage campaigns of the political parties and how gullible the voters are. Though many are fed up with the current system of elections and local administration systems, there is no other way to opt. It is high time to think of an effective alternative or rather to transform the current system. We should have a time when we can gauge a candidate based on his/her education, personal quality, integrity to a society or capability of doing things. Now-a-day corruption is done in the name of election funding. Ministers and Executives will direct their subordinates to get funds for the party and that in turn will call for getting money for the services offered by the government offices. From the village offices to the Secretariat, the government machinery will spring into action to collect money. If there is change in the system for collecting election funds in a more transparent and in an accountable manner, we can wipe out election time corruption to an extent. More and more youngsters should come forward to be a part of the politics and local administration. They should be compensated based on their education and qualities and thus helping them to be away from bribery and corruption. We can keep away criminality in politics. They should be accountable to the public. The people should have a say in finalising a candidate and the power to call back their representatives if they found them unfit. We are following the same pattern for more than six decades and we know that it is not the best choice. It is for sure that the pressure that the people can exert on political parties would result in the long run. In that way we can avoid muscle power and money power from elections; we can stop tainted candidates from contesting an election and bring in more transparency into the system. We cannot expect any changes overnight. We should take the first step and the other steps will be followed. K.N.Marzook, Managing Editor 06 Kerala Chamber Business News

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8 The Twenty20 run for self reliance and giving back the power to people Kizakkambalam is no different from any other village in Kerala. Its closeness to Kochi, the commercial capital of Kerala, is one factor that stands out, and the apparent traffic that zips through, makes it a little livelier. Hidden inside this subtle, calm, is situated the Anna-Kitex group and their production centres. Kitex is probably one of the world leaders in infant wear, and supplies to the biggest retail chains in the world. The Anna-Kitex group is known for their quality, innovation and commitment to social causes. But that is just from the outside, beyond that, there is a revolution going on, a fundamental change in the livelihood of the people. The people are much happier, united for a cause. And with the local body election process going on, Kizakkambalam is going to make yet another record. Under the banner of Twenty20 and lead by the visionary leaders like Sabu M Jacob, Twenty20 is registered as a society. When it started in March 2013, there was even a remote idea to contest in elections, but in the last 30 months the movement has to overcome several hurdles posed by local bodies and finally they had to unite and back the idea of contesting in the elections 08 Kerala Chamber Business News

9 the Chairman and MD of Kitex Group the people of Kizakkambalam are trying to win the local body elections. The Twenty20 evolution Twenty20 is registered as a society. When it started in March 2013, there was even a remote idea to contest in elections, but in the last 30 months the movement has to overcome several hurdles posed by local bodies and finally they had to unite and back the idea of contesting in the elections. Twenty20 is managed by a three tier management, which includes an 18 member executive board committee, a 50 member executive committee and 200 member strong working committee. It is commendable to say that Twenty20 is modelled on the Swaraj idea proposed by Mahatma Gandiji. Common problems, uncommon solutions Twenty20 tends to provide uncommon solutions to common problems in every village in Kerala. Kizakkambalam is one of the several villages in Kerala. The first objective was to dig bore wells in water scarce areas, till date the society has completed 10 potable water projects. The plan has built 90 sustainable drinking water projects by 2020 so that Kizakkambalam will be the only village to provide potable water to all homes. The drinking water project was the first successful project of the society and this lead to initiate a chain of projects in health, housing and education. Health Twenty20 has conducted several health camps to help the local people. A mega camp was conducted and more than 3500 people registered, about free surgeries were conducted, the society also provided for the post surgical care and continuing medical treatment. After this great success more medical camps focussed on dental and eye cares were conducted. Till date Twenty 20 has supported more than 3000 patients. A quick chat with the local people about Twenty20 revealed that the people in this village are no more worried about their medical expenses. Housing Kizakkambalam village will be the first village in India, to provide housing for all people. Till date they have built more than 440 houses and plans to build 1500 more in the coming 5 years. The society has also plans to build toilets to several houses and they are truly focussed on fulfilling our prime minister s vision to provide toilets to all houses. The society has also supported people to get electricity to their houses and also has widened and re- laid more than 14 roads in the village. Agriculture It amounts to nothing but massive whattwenty20 has achieved in the agriculture field. There were about 2500 acres of land lying barren in this small Kerala Chamber Business News 09

10 village. With the support of the society, the people restarted farming in 80% of the land and in those 500 acres paddy fields started yielding gold. A great achievement considering the fact that Kerala is totally dependent on other states for their staple food. Another massive achievement is the fact that the society was able to cultivate 5 lakhs plantains, more than ten thousand coconut trees and nutmeg tree. This is a continuing process; the produce is sourced from the customer at a good price The Twenty20 Card The people of the village are provided Twenty20 cards based on their income. This card is much more authoritative than the common ration card issued by the state. There is a subsidized market operated by the society which gives up to 50% discount for groceries and other essentials. Local body elections It s probably a unique event in the history of India that a corporate house is backing candidates to contest elections. The representatives of the society are contesting all the wards in the village. The vision is to make Kizakkambalam a model village in India in every aspect like Housing, Drinking water, Health, Food, Education, Agriculture, Employment, Electricity, Green Initiative, Infrastructure and to wipe out corruption. There are many other specialties for this election run; Twenty20 has set the minimum educational qualification for its candidates. In a recent meeting they have also announced they are implementing the right to call back a representative if he or she is not performing well. There are critics also for this movement; they believe that the movement is just a cover-up the issue regarding pollution the Kitex group is facing. In fact the congress led local body has rejected the license for the company citing pollution. The company is operating on a provisional license gained by moving the high court. The management rejects all these allegations. The fact that Kitex is a 100% export oriented unit and manage a clientele like Gerber, Toys R Us, Carters, Jockey and Mother Care, there is a no space for a critical error. It is also a known fact that the criteria set for vendors by these corporations are stricter than what our government sets. The company uses Swiss technology to process the effluents. The Anna-Kitex Saga It is also not an unknown fact that Late Shri. M C Jacob Founded the Anna group to give jobs to the local community, probably that will be the greatest proof for and motif behind the group s social commitment. From the humble beginnings, the group has grown to great heights; today the Kitex and Anna brands rule the market in the respective fields.! Kitex was founded as Kizakkambalam Textiles Limited in The company started by manufacturing the ubiquitous Lungi and then moved to producing fabrics. In 1993 we started a garmenting unit. In 1994 the company was made public limited as Kitex Garments! Kitex Apparel Park is a fully integrated manufacturing unit, dedicated to infant wear business. The Apparel Park gives direct employment to more than 8000 people and 95% percent of the employees live in the park premises. Kitex Garments occupies the No: 3 position in the world in the infant wear segment. The company caters to global brands like Mothercare, Gerber, Toys R Us, Carters, Jockey, and Wal-Mart, etc.! Anna Group has a 100% market share in branded aluminium products. Our aluminium is 99.5% pure and we now produce more than 800 types of products ranging from spoons, utensils, frying pans, pressure cooker and cooking range. Bejoy George 10 Kerala Chamber Business News

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12 Kerala Panchayat Elections Have Some Surprises in Store! 12 Kerala Chamber Business News

13 The battle line for the local Panchayat elections in Kerala is drawn and high decibel campaigns are on. Will there be a change in the bipolarity of parties and realignment of political parties in Kerala? The ruling United Democratic Front led by the Congress and the Left Democratic Front led by the Communist Party of India are equally alert and watchful about the new changes in Kerala politics. There are ripples and under currents. Kerala is looking ahead to unforeseen political ramifications. Will the upcoming Panchayat election will be a prelude for a strong political earthquake in Kerala? More than pure politics and fights between the two Fronts, Panchayat elections had been spearheaded by local issues. Those candidates who could make waves in the minds of the voters, irrespective of their political affiliation, will be the winners. Based on local factors and development issues, if they could create an initial momentum and upkeep the tempo till the poll days, they will be the gainers. The two political Fronts definitely know this tip and hence they were trying to rope in the most locally accepted candidates. That s why, in rare cases, a probable UDF candidate becomes the official candidate of LDF and vice versa. A major section of Keralites are looking for clean politics and they are unable to identify this trait in many of the politicians in both the Fronts. Most of the educated youngsters are purposefully keeping away from active politics as they do not want to be a part of mudslinging and corruption. If there is a quality improvement in politics and politicians, it is for sure that there will be more supporters for the political system in our State. The political parties in the State are unable to fill in this vacuum and they are striding in the same old worn-out route. Elections are the prime focus of the parties and after that they will totally forget the voters. They don t care for the poll manifesto, the assurances and all the developmental issues that they were voicing for during the campaign period. In the last few days, there were reports of mysterious pugmarks seen in several courtyards in Kerala and people were distressed, afraid and frantically in search of the dreadful animal. At last, it was found that the marks were not that of any unknown animals, but the foot marks of their Panchayat member, this is a jock going viral on social media in this election time. If there is a silver lining on the clouds, Kerala s people are ready accepting it. That doesn t mean that apolitical thinking is getting a deep root in Kerala? However, whenever there are positive signs from a quarter that would attract mass support. Twenty 20 movement Take the case of the new local movement Twenty20 in Kizhakkambalam panchayat, an eastern suburb of Kochi. Kizhakkambalam is marching forward hand-in-hand with Kitex business group under the Twenty20 banner to become a sustainable village. For the last few years, Twenty20 has changed the face of this village. The aim of Twenty20 is to drive away poverty from the village, attaining self sustenance in organic vegetable production, providing drinking water for all the families, building good houses, treatment facilities, pension for the eligible, and more over vegetables and all the provisions at half the price. The Twenty20 movement was started by Sabu M. Jacob, Boby M. Jacob, the industrious sons of late M.C. Jacob, the founder of Kitex >>> Kerala Chamber Business News 13

14 group. It was launched on May 19, 2013 and it envisages making Kizhakkambalam the best village in India by the year They have built more than 500 houses, maintenance were done for more than 2000 houses, heart surgeries and eye surgeries were done for nearly 2000 people. Twenty20 propagated greenery and earnings across the village through planting more than 5 lakhs plantains, more than 10,000 coconut seedling and around 10,000 fruit plants in the households. They selected about 500 acres of paddy fields, unused for years, and started paddy cultivation. They distributed 2000 goats and thousands of poultry to help making a living. Rubberised roads and tiled roads, with guarantee for decades, were built in many areas of the village. They have arranged a local market to supply all the vegetables and essential provisions at half the price. The change was all pervading... Now the families in Kizhakkambalam need to spend less than thousand rupees for a month for all the household expenses. However, the local Panchayats were not seeing the project as a friend but as a foe. They raised minor reasons to ban several activities of Twenty20. That forced the Twenty20 to think of elections and now they are contesting in all the wards of Kizhakkambalm panchayat. The candidate were selected democratically and all the Twenty20 candidates are graduates and aged below 50 years. Pineapple, grape and mango are their symbols. We have to wait until the result to see the In this election season, there are several questions in the air. Is there a chance for a third front to come up? What will be the outcome of the alliance between Sree Narayana Dharma Paripalana Yogam (SNDP) and BJP? Will the communal factors play a game in Kerala s local body elections? success of Twenty20 that has many ambitious plans for this village. Twenty20 is not alone testing their mandate in this election. There are other local movements too who actively participate in the local body elections. Chance for a third front In this election season, there are several questions in the air. Is there a chance for a third front to come up? What will be the outcome of the alliance between Sree Narayana Dharma Paripalana Yogam (SNDP) and BJP? Will the communal factors play a game in Kerala s local body elections? What will be the minority s reactions to national developments like Dadri lynching issue? What will be the impacts of regional upsurges such as Twenty20 in Kizhakkambalam. The Bharatiya Janata Party had been focusing on disenchantment factors related to the two Fronts in Kerala. In the 2010 elections, it had won six seats in Thiruvananthapuram Corporation, two in Kochi, one in Thrissur. In various municipalities it managed to win 76 seats out of which 15 seats were from Palakkad Municipality. The Modi factor and Aruvikkara legislative assembly by-elections have inculcated a special vigour in the party fold. From 7694 votes in the 2011 election, 85 year old BJP veteran O. Rajagopal managed to win 34,145 votes in the Aruvikkara by-polls. The vote share percentage surged by four fold to from 6.6. That s why Amit Shaw and his team is pinning new hopes on the local body elections and ambitious about a lotus blooming in Kerala. They expect that wind of change is blowing over Kerala. The alliance with SNDP has boosted their confidence. Will BJP make an in-road in Kerala 14 Kerala Chamber Business News

15 politics? We can t make any predictions, until the results would say the final word on November 7. In 2005, BJP got 9,64,133 votes in the panchayat elections and in 2010 it managed to gain 11,47,297 votes, an increase of 1,83,164 votes. BJP has increased their membership in the last years. The missed call campaign has been successful. However, the party is yet to gain the confidence of Muslim population in Kerala. UDF is making high compromises in Malappuram District where all sorts of infightings are seen in the Front. Congress and its major ally Indian Union Muslim League (IUML) are contesting face to face in 24 Panchayats. More over there are allegations that CPI-M has made local understanding with the Muslim league to fight against the Congress. In the last elections, IUML was feeling high resistances from Socialist Democratic Party of India (SDPI) in its strong holds in northern Kerala. SDPI was contesting in almost all wards where Muslim League candidates were contesting. This time IUML is trying to prove its strength and that s why they are no yielding to pressure from Congress. Anti-incumbency factors were against the CPM in the last elections. The party had failed to put its own house in order in several issues and the row with the Church had not helped to win votes. The consolidation of communal votes was another factor that stood against the CPM. In 2010, the party and the Front could put up a good show in Kollam, Alappuzha, Palakkad, and Kannur Districts only, while Congress was dominant in Thiruvanathapuram, Idukki, Kottayam, Ernakulam, Thrissur, Malappuram and Wayanad. The battle front There are 75,549 candidates contesting for the local bodies. For the 14 local district panchayats 1282 candidates have filed nominations. For the 152 block panchayats there are 6915 candidates. For the 941 village panchayats 54,956 candidates are on the fray. For the 86 municipalities, there are 10,433 candidates, while for the six corporations 1983 candidates are in campaign. Another peculiarity of Kerala local polls is that there 38,268 women, outnumbering 37,281 men candidates. The major political parties in the state may have different identities and ideologies, but a common factor would be binding them all in the upcoming local body elections. They all will be importing flags and symbols, to be used in pre-poll campaigns, in bulk quantities from China. China-made symbols such as hand, star, hammer and sickle, lotus, ears of corn and sickle, apart from flags and festoons would be filling every nook and cranny of the state in the coming weeks as the campaign managers of the main parties have already placed orders with manufacturing units in China. Wholesale dealers and local agents will be stocking them in large quantities as the sale of these materials are expected to pick up with the beginning of public meetings and road shows. Apart from CPM and CPI, leading parties such as Congress, Muslim League and BJP will also be procuring their symbols and flags from Communist China. The retail price of a medium-sized flag is fixed at Rs 20 per piece, while a large one will be sold at Rs 40. According to the agents, there could be variations in the prices when the campaign reaches its peak. Kerala Chamber Business News 15

16 According to our constitution, a Hence, there is no political party- based democracy Opposition in the local self has to exist at the central govt governments. Decisions are and state govt levels. The President appoints the leader of the majority party in the LokSabha as the prime minister. The Prime minister recommends other made jointly without any political differences. Even bribes are asked for and shared!in short the political members of his party as cabinet members. party has no role to play Sri P.C.Cyriac, The opposition party which could not IAS (Rtd.) there.in that case is it no illegal claim majority can sit in the opposition. Former Addl. to conduct party based Likewise, in the state assembly, governor appoints the leader of the majority Party as the chief minister. Other members of Chief Secretary Govt. of Tamilnadu elections in panchayats and municipalities. Today, in each ward of the ruling party are appointed ministers.members of the party who could not win a majority can choose to remain in the opposition. At the center and state level the opposition has no role in administration except functioning as the opposition party. However in corporations, municipalities and panchayaths nobody appoints the leader of the majority party as mayor, municipal chairman or panchayat president. All elected members elect a mayor/ municipal chairman/ panchayat president and a deputy mayor, municipal vice chairman/ vice president). Other leaders of the majority party are not vested with the authority to rule over various departments. Instead there is a standing committee (permanent committee) to administer each department. These permanent committees are in charge of each department; health, finance, developments, education and public works etc. each standing committee consists of members from all parts of the house. Each councillor and each panchayat member is the member of one standing committee which controls one particular department. Hence, each member participates in the administration. Those who participate in the administration cannot be termed as the opposition. Kerala, candidates from various political parties compete with each other. The only duty of the voter will be to vote them to success. Such councilors have their basic allegiance not to the public but to their respective party leaders who nominated them as their candidates.they will tend to protect the interest of their leader instead of standing up for common interests. How did they successfully establish the party system in local self government elections despite not having any legal provision for that? A simple trick. They have added a rule - in case a political party asks to allot its symbol to a candidate, it can be considered. Under this rule, all the political parties have conspired for conducting panchayat/ municipal elections on basis of party symbols and thus have simply hijacked the elections The candidate who wins under the symbol of the political party should vote as per the whip (order) of that party. Otherwise, She/ He would lose her/his position but according to the constitutions provisions the panchayat member or municipal councilors should conduct meeting ward committee or ward sabha and consult people and according to their views and not according to the party 16 Kerala Chamber Business News

17 Since, there is no Opposition in the local self governments. Decisions are made jointly without any political differences. Even bribes are asked for and shared! In that case, is it not illegal to conduct party based elections in panchayats and municipalities? whip this is the constitutional provision to make grass root level democracy possible but the member or counselor elected on part ticket does not do this and instead works according to party whip. So the constitution is flouted and grass root level democracy negated. There is another premise why party politics is irrelevant in local self governments. The municipalities and panchayats are mainly concerned with waste collection, waste management, sanitation works, and maintenance of roads and making provisions for potable water. None of these initiatives need to have a political party base. No political ideology is involved in this activity. What can we do to reclaim the democracy that the political parties have hijacked? For local self government elections, the voters of each ward should meet and discuss such dirty tricks by the political parties. They should find out honest, educated, hard working men and women who are willing to strive for the best of the society. The most popular person should be persuaded to become the candidate. Candidates should be selected at least one month prior to the elections and campaigns should be conducted in an economic and effective manner by visiting each house in his ward. The candidate will make a promise. If at least half of the voters feel that the candidates performance is not satisfactory, and they give a written intimation regarding this she/he will resign. A handful of such committed candidates can make our democracy more meaningful. This experiment can successfully be implemented in panchayath wards where there will be only families in each ward. Kerala Chamber Business News 17

18 When Prime Minister Narendra Modi assumed power in May 2014, many analysts debated whether he would follow the footsteps of Margaret Thatcher or Ronald Reagan, leaders who, for better or worse, showed a steely determination in following their chosen path of economic and administrative action. Modi s admiration for the Chinese model, his homage to Singapore s former prime minister Lee Kuan Yew were held out as signs of things to come. Long overdue administrative reforms were deemed imminent and the bureaucracy was getting ready for a massive shake-up. Today, things are a bit different. In spite of the heady adulation abroad (admittedly selective though, now with the Nepal backlash), and the unending electioneering back home, the government seems to be on the defensive. Modi and his advisors are complaining that Indian companies are not playing ball. Those outside the government (including the industry) are instead complaining about credit constraints, an unpredictable tax regime, lack of labour reforms, the government s silence over state-owned banks non-performing assets, and the forgotten promises of disinvestment. Again, for better or worse, the overwhelming demand is for the government to act decisively, for many would take a sure-footed action-oriented government, and not one that seems frozen in its steps when it comes to concrete reforms. The social sector too which would have been highly encouraged by the early rhetoric over housing, sanitation, roads and micro-enterprises has been waiting. The bureaucracy had seemingly abandoned UPA 2 in its last days, and there is no reason why it won t do the same to Modi 18 Kerala Chamber Business News

19 Many of the early promises are linked critically to the maxim of minimum government, maximum governance in at least two distinct forms. One, we need less of the central government the Government of India needs to cede more to the states and do so fast. On this, we have seen some action, especially on fiscal transfers, but nowhere at the level that was promised. In turn, the states themselves by and large have shown very little in terms of their own ability to leverage this fiscal windfall. But even there, if Narendra Modi had lived up to his promise, a few redundant central ministries should have shut down by now the ministry of information and broadcasting would be my prime candidate. Two, we need governments everywhere to improve governance by establishing a rule-based system, and reducing literally, the size of the government by cutting back on the functions government ministries and agencies are required to perform, and improving the efficiency with which the tasks that then remain, are discharged. However, as this government has discovered for itself, minimum government is difficult to achieve in practice, for which many factors are responsible. Elected leaders prefer the status quo, or even expanding the reach of the state, since this empowers them further in a framework that operates on patronage dispensation. Given the elections calendar in India, we unfortunately have political parties that are always in campaign mode. Thanks to the Bharatiya Janata Party s campaigning template, Narendra Modi is thrust into electioneering roles that sometimes come at the cost of the responsibilities he is supposed to shoulder in his role as the Prime Minister, and the even-handed treatment of states that should go along with it. The temptation of, say, winning Bihar, will always trump prudent governance and the urgency for reforms. But even when political leaders want to initiate reforms, the bureaucracy wields an enormous amount of influence in determining the fate of such reforms, and this should be no surprise. It is useful to go back to theory to understand the role bureaucracies were meant play in the first place. In the Weberian model, the struggle between the political leadership and the bureaucrats is an inevitable outcome. Whether as experts or as the masters of processes, bureaucrats spend their entire careers honing their skills to protect at all times (and expand when possible), the power and prestige of their organisation. Bureaucrats, therefore, will resist overtly and covertly, significant reform proposals. As researchers Merilee Grindle, John Thomas (both Harvard University) and Francis Rourke (York University) have pointed out, reforms that look to trim the size of government usually impose a high cost of the bureaucracy, either in >>> Kerala Chamber Business News 19

20 terms of size (manpower) or their jurisdiction. Further, bureaucracies are not homogenous structures, and as Patrick Dunleavy (London School of Economics) points out, there is a constant tussle between the interests of high-level and lower-level officials. High-level bureaucrats are often more interested in policy work and, therefore, are likely to accept (and sometimes advocate for) trimming large bureaus into smaller elite outfits with enhanced advisory power. In contrast, bureaucrats at lower levels usually resort to collective bargaining strategies to promote their interests, which lie in increasing their discretion on the ground. Balancing these interests and designing reforms that enhance efficiency is, therefore, a political prerogative and cannot be left to the bureaucracy alone. Take, for instance, the finance ministry. Whereas Arun Jaitley s own ability to address the key issues facing the economy are under attack, as a minister he mostly needs only to manage his departments better, and they are certainly not lacking in technical competence. But somehow he runs a ministry where the tax mandarins were running amok (imposing retrospective taxes on foreign institutional investors, an unrealistic black-money hunting expedition, increasing individual tax compliance requirements, etc), and where critical legislation like that on the Goods and Services Tax suffers from fundamentally poor design. Remember that left to its own devices, the bureaucracy has no reason to cut back on its own reach or powers of arbitration, and this comes through very strongly in the functioning of the finance ministry, in particular. This institutional view of the bureaucracy might be a pessimistic one, but it is also a realistic one. The onus for pushing reforms, therefore, rests on the political leadership. This is where Narendra Modi faces his biggest challenge. The longer he goes without initiating big reforms, the harder it will become to get the bureaucracy on board. We will be saddled in perpetuity with a bleeding Air India, an inefficient Coal India, and a predatory tax department, to name a few. The bureaucracy had seemingly abandoned UPA 2 in its last days, and there is no reason why it won t do the same to Modi. The "erroneous policies" pursued by successive governments at the Centre from 1975 to 1991 constrained India s massive potential to emerge as a global leader in the hardware sector despite its software prowess, according to Infosys cofounder and Narayana Murthy. "Though India has made rapid strides in the software sector, it lags in the hardware sector," Murthy said at a function in Nagpur on Wednesday evening where he was presented the Lifetime Achievement Award by the Nagpur chapter of the Engineers Forum. "Though India had the potential to lead the world, it had lost this precious opportunity in the past following erroneous policies pursued by successive governments at the Centre at that time," he said. "As far as production of hardware is concerned, China is billed as the factory of the world. India too possessed a similar potential. However, policies by the central government between 1975 and 1991 put India on the backburner," Murthy noted. "Despite this, India rules the software sector all over The Business News Corporation 20 Kerala Chamber Business News

21 the world, which has given it a unique confidence and edge, he said, attributing it to the 24X7 work model, as a result of which it has become the largest job provider". He said India should adopt a multiculture system and recruit people from all over the world to make further progress in this direction. Colleges get poor marks Painting a grim picture of engineering education in the country, he said colleges are churning out only 25 per cent quality engineers. "If India is to improve the standard of engineering colleges, they must be given full autonomy," Murthy added. On growth of IT industry, he said it is the biggest employer in India today, generating employment for 2,000 people every year. In fact, this segment has displaced the public sector as the largest creator "As far as production of hardware is concerned, China is billed as the factory of the world. India too possessed a similar potential. However, policies by the central government between 1975 and 1991 put India on the backburner" of jobs. "All these achievements are being undone as engineering education in the country is not up to the mark," he regretted. He also quoted the McKinsey report which said only 25 per cent of engineering graduates are employable. "This should be an eye-opener for us... the need is to tone up the education sector as the quality of our engineers is below average," Murthy added. The Business News Corporation Kerala Chamber Business News 21

22 Pushpy Muricken Jt Convenor, KCCI Ladies Forum. FCMA, LLB Consultant director to Beintrack Business Solutions (P) Ltd. In India, MSME (Micro Small and Medium Scale Abundance of natural resources and low cost of skilled Industries) play a vital role, in building a selfsustaining socio-economic environment by charm. But, in spite of the conducive environment, this labour are the contributory factors to this superficial contributing 45% of industrial output, about 40% of exports, creating approximately 1.3 million jobs every year and producing more than 8000 quality products for sector has not been able to reach its potential as a result ofstiff challenges causing bottlenecks arising from an array of factors such as fund shortage, lack of marketing Indian and internationalmarkets. There are support, managerial expertise anddearth of governmental approximately 30 million MSME units in India and 12 million persons are expected to join the MSME workforce in the next 3 years. MSME- Categorisation support, to name a few. Though the factors may appear to be many, drilling down, the slow paced growth happens due to mainly two factors MANUFACTURING SECTOR 1. Non-optimal utilization of Enterprises Plant & Machinery- Investment Proposed resources Micro Below 25 lakh Below 50 lakh 2. Lack of Managerial expertise Small Medium 25 Lakh 5 Crore 5 crore 10 crore 50 Lakh 10 crore 10 crore 30 crore Let us now try to dissect both these elements and also have an idea of SERVICE SECTOR suggested practices which can skyrocket the performance of MSMEs Enterprises Micro Small Medium Equipment - Investment Below 10 lakh 10 Lakh 2 Crore 2 crore 5 crore and take it to the heights of its true potential. NON- OPTIMAL UTILIZATION OF RESOURCES 22 Kerala Chamber Business News

23 India, no doubt has abundant resources but it is also an undisputed fact that these resources are not used effectively, resulting in high costs and ineffective pricing. Ineffective use of resources again means more fund requirement, and rising cost means rising selling price, which is a marketing challenge. Resources when converted to money becomes cost.thus the key to success is cost control, adoption of international practices and constant benchmarking with businesses in similar sector. Cost control is limited to preparation of unscientific cost sheets, in the SME sector due to lack of awareness Cost control techniques There are various techniques available for effective cost management. The challenge is to identify the best suitable technique or techniques for each and every organisation. The optimal strategy can be identified and adopted through expert advice. Some of the techniques are ABC analysis, wherein cost is measured based on Cost drivers, Target Costing, in which a selling price is set first and then cost is worked out in such a way so as not to exceed the target, Lean Costing, Throughput analysis, Kaizen, Just in Time and Value engineering methods. Best Practices adopted by competitors and benchmarking also helps keep an eye on cost. SMEs shall make decisions on make or buy, own or hire, based on cost comparison. In majority of cases after a proper cost analysis, the production of certain product range itself has to stopped, certain products which have a good contribution margin have to promoted, Resource allocation is to be changed etc. LACK OF MANAGERIAL EXPERTISE Any business needs to be managed properly to succeed. While the entrepreneur is busy in scaling up the business, the establishment need to be managed professionally.a full time chief financial officer is a boon to any organisation, but majority of SMEs cannot afford full time CFOs due to high costs. In such cases they can think of hiring part time CFOs, so that they can avail the services of an experienced executive, but at a fraction of the usual cost since the time commitment may only be one or two days a week. With suitable strategies, a bright future is ahead for MSMES. The World Sight Day was observed with the help of M/s. Essilor India Pvt. Ltd in Association with M/s. C.K. Kurian & Co., M/s.Lens & Frames and KCCI at the Help Centre of KCCI, at Cochin Airport. In the function, eye testing of many taxi drivers were held free of charge. Airport Director Mr. A.P.K. Nair, other officials of the Airport, Chairman Mr. Mathew Kuruvithadam, Finance Director, Mr. K.S. Usman etc. were also present. Airport Director Mr. A.P.K. Nair, Chairman, KCCI Mr. Mathew Kuruvithadam, Finance Director, KCCI Mr. K.S. Usman are seen Kerala Chamber Business News 23

24 Lekha R. Executive Committee Member KCCI Ladies Forum. MD, Resitech Electricals An efficient power supply system is a key requirement for a nation s economic growth and good quality life of its citizens. Assured availability of quality power at a reasonable cost will not only act as a catalyst in the socio-economic development of the country, but also enhance the global competitiveness of the industrial sector. It will also lead to enhanced employment generation and per capita income levels. Transformers and Switchgears are an indispensable components of an electrical system.it is required in Generation, Transmission and Distribution. The Indian Electrical Industry is comprised of Multinational, Large, Mediun and Small scale Industries.It is estimated that present size of Indian Switch gear & Transformer industry is around Crores According to IEEMA( Electrical and Electronic Manufactures Association) Journel,,,at present India has an installed generating capacity of over MV Government has set ambitious goal to increase generation capacity of about MV to meet the objective of POWER to All By With focus on increasing generation capacity over next 10 years, the investment in this sector is also expected to increase. Market opportunity Utility Segmant Indias industrial sector account for about 30% of GDP. Most of the industrial sectors are reporting growth and expecting an increase in coming years, which will lead to increase in demand of transformers and switch gears. Commercial and Infrastructure Infrastructure section is one of the most imp thrust sector with an estimated growth of around $400 Billion over the next five years.this is expected to benefit Ring Main Units, Circuit Breakers and Transformer Industries. Vision 2022 set for Indian EE industry is To make India the country of choice for the production of electrical equipment and reach an output of US$ 100 bn by balancing exports and imports To enhance and sustain growth and improve competitiveness of the Indian electrical equipment industry: following strategic are to be initiated! Upgrade technology levels to bring it at par with global benchmarks 24 Kerala Chamber Business News

25 Transformers and Switchgears are an indispensable components of an electrical system.it is required in Generation, Transmission and Distribution! Develop manpower skills to support industry s future requirements! Secure supplies of critical input materials! Identify target markets and develop country-specific export strategies! Introduce policy changes to support EE exporter! Improve fund availability to power sector! Provide fuel linkages and faster regulatory clearance fortimely power projects set ups! Accelerate Renovation & Modernization activities! Accelerate deployment of rural electrification schemes Indian EE industry is on a critical path of growth. It is imperative that the all stakeholders work towards development of this industry, which serves the strategic power sector. Right policy initiatives and actions by all stakeholders will give the industry the momentum to achieve the desired vision. Resitech has been in the activity of manufacturing 11 KV KV RESIN CAST Distribution Transformers,,Oil cooled Transformers,Switch Gear Components,High tension Current and Potential Transformers.. Factory is located at Industrial Development Area, Erumathala,Aluva.Promoters of the company are R.Lekha,a BTech Graduate with 26 years of experience in electrical manufacturing field,and Mr. Balachandran,an engineering Graduate with 33 years of experience in marketing. Their Product range includes 11 KV Cast Resin Distribution Transformer, Oil filled Disttribution Transformer upto 22 kv, Unitised Substation, Load Break Switch Panels,Vaccum Circuit Breakers.Current Transformer upto 33 KV, Potential Transformers upto 22 KV, Epoxy Cast Components.. Resitech is supplying their Products to Southern States of India.they are enjoying a good market sharre in Kerala. The factory is well equipped with the lastest machineries Testing Equipmemts,material Handling facilities, and high level of workmanship. They are committed to deliver high quality products, cost effective and honour timely delivery. All products are TYPE Tested at Central Power Research Institute(CPRI).Routine test are done at factory before despatch ResiTech is enjoying a Good market share in kerala. RESITECH is the System House for SIEMEN s VCB and RING MAIN UNITS in Kerala. Client List Includudes Reliance,BHEL,VSSC, Railway, Infopark,Various Electricity Boards, SBI,SBT,PWD,KWA,BSNL,RCC,VEEGALAND, And Major Builders of Kerala,Bangalore. Kerala Chamber Business News 25

26 Ms. Smitha Naik Executive Committee Member KCCI Ladies Forum. Interior Designer, Sobith Enterprises The other day I was traveling from Kochi to Kozhikode by road, and I was amazed to see the number of concrete buildings and residences lining the highway ranging from modest to ostentatious. It goes to show that one of the fastest growing sectors and avenues to invest money in Kerala today is construction and real estate. People buy handsome properties at picturesque locations at rich prices, build large and expensive homes at even more richer scales.buildings and houses are constructed that may defeat even the most conspicuously large ones around in that area with the hope that there will be takers for the building for showrooms or offices. And even though there is in majority of cases, an aspiration to own a beautiful interior space, the true essence of beautifying the interior space, is many a times lost in the process of getting the right design and attempting to execute it in the best possible way. High quality design make a very important contribution both to society and to the economy, particularly when budgets are tight and value for money is key. Poorly-designed and ill-planned interiors sink the spirits of those who live or work in them and can, at worst, actually help defeat the core purpose of the building itself. But before we go further let us get to know the basic difference between an Interior Designer and an Interior Decorator. An interior designer is a professional with experience in designing and utilizing any given space to its best and fullest functional utility in the most appealing way through proper planning, aesthetics and technical know how. An Interior Decorator or Interior Contractor is a business enterprise which will carry out and execute any given design to its end. There are also Turnkey Solutions or Fit out Contractors who provide both design and shop drawings as well as carry out the execution of the design. I shall hereby attempt to put into perspective on the need to support high standards of design in Kerala that can better the experience of all stakeholders in any 26 Kerala Chamber Business News

27 design partnership namely the client, the designer, the decorator, the end user and most importantly the society Regulated Body governing Interior Design and Decorator fit out companies : Half baked knowledge is more dangerous than none at all. This is true in the case of the design industry in Kerala. As there is no licensing body, anyone can become an interior designer or contractor. Some of the very bad designs we see around us is caused due to the lack of experience and technical know how. Many a times clients also take up designing and executing work themselves to save money. But it is in fact the harsh reality that they end up spending more money and most importantly time on doing something they don t know. Hence the need of the hour is to identify and create a common body of designers / contractors who are qualified and experienced by work or quality design and build. Regulating this industry will weed out those in adept and fly by night operators who charge exorbitant amounts and worst, deliver substandard work on the name of design. Having said that there is a fine line between what can be judged as a good design and hence licensing shall be to establish good practices in design, protect the public and hence ensure quality. Standards and licensing with experience working in the field shall entitle a quality practice to run its business without compromising on quality. Holistic Design Centers : These design centers can be established at different points in the state to engage students who are creatively inclined. Short courses that offer Interior Design should be designed to be a stepping stone to higher education options and registration/certification should be limited to those who hold a bachelor degree or equivalent. This shall ensure that good design is not limited to a privileged few and can be afforded by anyone in any and every place, big or small. The vision has to be quality training by qualified professionals will hand hold coming generations to aspire to give back to the society better design. Quality Products : Rather than working separately, the design industry should involve other ancillary businesses to bring about quality products and hence a move to attain common goals of benefiting the end user. User based experiences should be studied and used to develop innovative products. These in turn help in establishing innovative and sustainable designs which are economical and functional These end designs shall offer enormous economic and societal benefits. Accuracy and focus on detail shall show respect towards the end user. Government Intervention in standardizing better interior design guidelines : The Government can start by implementing standard design practices in all the Government buildings and public enterprises. Simple guidelines like environmental friendly workspaces, good acoustics, good lighting,well ventilated quality air, user friendly design, better functional driven layouts with public access points, disable people friendly areas, well designed toilets, usage of economical and sustainable products, ease of mobility etc shall in turn bring about the desired change in the government workspace productivity and change the perception of the public positively towards the government run offices. These are just but a few thoughts in my mind and are not an exhaustive list at all. The last but not the least, even though design seems to be a very creative field reserved only for the creative, the reality is that it is as much of a real business and is all about a perfect combination of an intricate business sense, delivering a quality experience to the end user in a set budget within a logical time line. Kerala Chamber Business News 27

28 KCCI SR members greet the Consul General of Canada at Vivanta By Taj, Trivandrum. Mr. T.C. Paul, President, KCCI SR, Adv. Shibu Prabhakaran,Director, KCCI, Mr. Mohammed Bashir, Mr. C A Jose Zachariah, etc. are seen. At the time of the visit of Mr. Sidney Frank, Consul General of Canada was received by KCCI SR., members at Vivanta By Taj, Trivandrum on During discussion Mr. Sidney Frank eagerly enquired the main activities in Kerala and the discussion was concentrated on IT, Hospitality, Tourism, Health Care, Ayurveda and Yoga Meditation etc. Mr. Sydney stated that the people of Canada are fully aware of yoga and mediation. He assured that they can create a business platform for the business community to develop trade and commerce Hospitality, Tourism, Health Care, Ayurveda and Yoga Meditation etc. Mr. Sidney informed that the people of Canada are fully aware of yoga and meditation. He futher stated that they can create a business platform for the business community to develop trade and commerce. The problem of Waste Management was also highlighted during discussion. When Mr. T.C. Paul presented before the consul General the waste management in Kerala, the Consul General informed the members that Canada has excellent system for waste management and expressed his willingness to transfer the latest technology to India for eco friendly disposal of waste especially plastic waste. Mr. T.C. Paul, President, KCCI SR, Adv. Shibu Prabhakaran,Director, KCCI, Mr. Mohammed Bashir and Mr. C A Jose Zachariah took active participation in the discussion. O. Venugopal, Managing Director, Anaswara Offset Pvt. Ltd, receiving the award from C.G.Ramakrishnan, Executive Director, Technova along with Anila Mathew, Arun Thomas, Directors, Anaswara, Dev Nair, President AIFMP and representatives of RICOH India. 28 Kerala Chamber Business News

29 Shri. Paul Antony, IAS, Chairman, Cochin Port Trust inaugurating the New Office of KCCI, W.Island Exim Help Centre. Mr. Mathew Kuruvithadam, Chairman, Vice Chairmen Mr. Antony Thomas and Mr. U.C. Riyaz, Former Chairman Mr. K.N. Marzook, Directors Mr. M.P. Deepak Kumar Shetty, Secretary, Mr. A.J.Rajan,IAS (Retd.), KCCI Ladies Forum Convener Ms. Sheela Kochouseph, KCCI Youth Forum, Convener, Mr. Deepak Sathyapalan are also seen. Inauguration of the new office of the EXIM Help Centre of Kerala Chamber of Commerce and Industry was conducted at Port Users Complex, No.1. Bristow Road, (Near Ernakulam Wharf Gate), Willingdon Island,Cochinon Sri. Paul Antony, IAS, Chairman, Cochin Port Trust inaugurated the New Office. Mr. Mathew Kuruvithadam, Chairman, KCCI presided over the function. Mr. Antony Thomas and Mr. U.C. Riyas, Vice Chairmen, Mr.K.S. Usman, Director (Finance), Former Chairman Mr. K.N. Marzook, Directors Mr. M.P. Deepak Kumar Shetty, Mr P. Unnikrishnan Nair, Secretary, Mr. A.J.Rajan,IAS (Retd.), Ladies Forum Convener Ms. Sheela Kochouseph and Joint Convener Ms. Pushpy Muricken, Mr. Deepak Sathyapalan, Convener Youth Forum Mr.Rajesh Nair, Former Convener, Youth Forum and Staff of Chamber were present on the occasion. Forwarding and Clearing agents, Steamer Agents etc. were also present In a bid to include Kochi on the top 20 list of the Smart City programme mooted by the Central Government, the Kochi Corporation convened stakeholders meet to gather inputs before preparing the Smart City Proposal (SCP) for the city. The meeting, chaired by Mayor Tony Chammany, was attended by Excise Minister K Babu, MP K V Thomas, Smart City Mission Director Mohammad Hanish IAS, MLA Benny Behnan, Hibi Eden, Dominic Presentation, representatives from industry, town planners, urban designers, technical experts and dignitaries. Kerala Chamber of Commerece and Industry is represented by Youth Forum executive committee member Rajesh Nair, Kerala Chamber Business News 29

30 In today s world, urban living comes with its share of safety issues. While the primary victims of anti-social elements are women, whether students, housewives and especially working women; school going youngsters and senior citizens are also an at risk category. Each of us wants courage to live the life that we want to. We dream of a world with no curfews, where no space is off-limits. Where we are free to go out or stay in. And we walk through our city like we own it. Which is why AVA by Save My Soul is here. AVA by Save My Soul is a revolutionary safety enabler that works in sync with the Save My Soul mobile application to help you ensure your own safety, at all times. Developed, designed and manufactured entirely in Bengaluru, AVA by Save My Soul is the first safety enabler App-Ware to be indegenously made and launched. It works using Bluetooth Low Energy (BLE) technology and syncs with smartphones that have Android OS version 4.4 to 5.1 and ios version 7 and above. Following rigourous research and development, the team at BMS Innolabs have designed AVA keeping in mind various parameters and scenarios where an individual s safety may be compromised. Ease of use and size being a primary concern, translated into a simple click based device, which can pass off as a key chain or bag charm,not drawing attention to it, alerting a possible attacker to its presence. The device requires a smart phone to pair with the app and work seamlessly. Going by statistics, BMS found that the high penetration of smart phone users across demographics validates the app and device pairing. What is AVA?: AVA by Save My Soul is a bluetooth safety device for all of us who want to take responsibility for our own well being. A single button device, AVA pairs with the Save My Soul mobile application on your smartphone. If you ever find yourself in a spot of trouble, all you need to do is activate a single button on AVA that will trigger multiple responses through the Save My Soul (S.M.S) App. The app and device have been developed specifically for India, keeping network and data constraints in mind. Why Use It?: We believe that a simple device like AVA can be an effective ally in ensuring your safety, everyday. Perhaps with a necessary precaution like AVA by your side, you will now impulsively go watch a late night film with your girlfriends or take a stroll in your neighbourhood, by yourself. You will feel confident about driving to a little known part of your city, on work. Or you can choose to take the last flight into the city, so you can sleep in your own bed at night. AVA puts you in charge of your own safety. How does it work?! Starts tracking your location the second you feel unsafe! Sends your location data to your emergency contacts! Triggers an instant call to 100 to alert cops with just one button! Has a scream feature for when you are in danger AVA is unique because:! It activates an automatic SOS reaction when you are non responsive! Works even when your phone has no pre-paid currency! Works even when your phone is low on battery or is in a poor network area! Ensures 100% privacy of your data at all times To know more, visit BMS Innolabs has partnered exclusively with Flipkart for the sale of AVA, at an introductory price of Rs Lakshmi Ramohan 30 Kerala Chamber Business News

31 Rajesh Nair Executive committee Member KCCI Youth Forum That Sreesanth is made to wait at the doorstep of National Cricket scenario even after he is let free by the court does not go well with BCCI and KCA, more so with the latter. Court verdict has virtually nullified the life ban BCCI had rush-slapped on this South Indian star cricketer that ruined his career not to mention team India losing its full potential that could be. That we, as a nation, could not stay afloat in the global games arena despite having masterly players, is clear pointer towards excesses politics play in sports as much in every other field of Indian life. It had been our perennial sorrow that deserving aspirants are blatantly ignored and side-lined at the pleasure of politicians and party heads. Personal interests and party affiliations turn decisive in place of competitive edge of contenders. Nation has been losing its due shine when selectors run their personal agenda in secret connivance with party heads. What other reasons can we site for our nation s dismal performance in athletic metes and games globally. Various divides that India suffers on account of its complexities, be those on grounds of regionalism, language, religion and so on needs to be broken down. Favoritism and nepotism that have been plaguing Indian way of life and worse still, blocking our due and natural progress are elements of evil in our culture. A cleansing is overdue, a filtration is emergency. Stunning still is the state s complacency in the matter of bringing back Sreesanth and re-compensate him. The state of Kerala has to take initiative in restoring its proud son Sreesanth to his damaged glory. If that too doesn t happen, people s trust in those in authority would wither out and gloom would settle in, to the total detriment of other potential entrants into sports and games. Unqualified, nonpretending and non-partisan consideration of the truly talented and gifted aspirants alone can remove accumulated resentment in the minds of potential prize winners of the country and launch the nation along its due orbit. A lot among the Malayali community silently admire Sreesanth and do feel sorry for what has been served to him by agents of disaster. And it is proper and right for KCA to usurp the low laid emotion of the mass and light up the darkened spirit of sports and thereby activate our belief in nationalism thereof. Even in law, wrongful detention has proper recourse, how much more should that be in Sports, more so with Sreesanth for all the wrongful agony that was thrust on him by agents of distortion and discrimination. Should we not rush to contain these agents who contaminate our life and its substance and help ourselves stay afloat prudently in the larger interests of generation that follow on! Kerala Chamber Business News 31

32 Have you ever considered that the lofty Redwoods of California or the colossal Sequoia originated from a mere seed. It follows that the seed contained within itself the potential to develop into these magnificent trees. All the seed required was a nourishing environment. Now let s consider the human child. It has been generally believed that he has to be trained and moulded into an efficacious and productive human being. And it is believed that this transformation is effected by what today, goes by the name of Education. But what a humongous fallacy that is! Just like a seed, the child holds within himself the potential to develop into a man; all he needs is a nurturing environment and the freedom to follow the dictates of nature. The child is guided from within by a life force, the horme a term coined by Sir Percy Nunn, which acts in conjunction with the mneme, a hereditary memory.according to the French Jesuit, Pierre Teilhard de Cardin, this life force directs the entire world to its teleological end. The child is aided in his development by sensitive periods an absorbent mind, a mind that Susan Mathew Vice-Principal Modern Montessori International, Kochi absorbs impressions from the environment good, bad and ugly and incarnates himself. Sensitive periods are blocks of time during which certain functions are astoundingly created. Sensitive periods are transitory, and once passed, the natural conquest is lost forever. In the first three years of the child s life, this absorption is subliminal. By the age of three, he has laid down the foundation of the personality of the man he will be. In the years three to six, more than ninety percentage of the adult personality has been established. Now we come to the pertinent question What is therole of the school and the teacher. The school must be a nurturing place and the environment a place that is prepared according the child s needs with plenty of motives for purposeful activity, where the child can work freely, making his own choices and decisions, thereby developing his will and intelligence. The teacher must be a facilitator, one who sees the child, not as an empty vessel waiting to be filled with her knowledge, but as one who has the potential for self-construction. Her spiritual preparation is of paramount 32 Kerala Chamber Business News

33 Just like a seed, the child holds within himself the potential to develop into a man; all he needs is a nurturing environment and the freedom to follow the dictates of nature importance. She needs to see the child as an individual in his own right, not an extension or an appendage of the adult. She must have faith in the child that he will construct and reveal himself according to the Laws of Natural Development. The child creates the man and no man exists who was not created by the child he once was. -Dr. Maria Montessori Innovate or Perish, Mr. Sajiv Nair, Chief Mentor of BRAMMA LEARNING SOLUTIONS educating on the Topic in a programme conducted by the Youth Forum Executive Committee Members The knowledge sharing session on the Topic Innovate or Perish was held on 29 th September 2015 at the Chamber hall of KCCI. Mr. Mathew Kuruvithadam, Chairman, KCCI presided over the meeting. Inauguration was done by Mr. Sajiv Nair, Chief Mentor of BRAMMA LEARNING SOLUTIONS. Mr. Deepak Sathyapalan, Convenor, KCCI Youth Forum welcomed the guest and participants. The programme was sponsored by Beaumonde, the Fern Hotel, Kochi. Kerala Chamber Business News 33

34 Growth in wealth creation by the middle class in India is higher than its pace globally, but lags far behind the scorching pace of growth in middle class wealth in China. In India, middle-class wealth has grown 150% since 2000, while globally it has doubled, according to the Global Wealth Report 2015 by Credit Suisse AG. China experienced a staggering rise of 330%. Global middle-class wealth is estimated at $80.7 trillion compared with $44.4 trillion in During the same period, middle class wealth in Asia Pacific has expanded by 70% to $27.2 trillion, by 102% in Africa and by 109% in Latin America. In India it has grown by 150%, while China has experienced a significant increase of 330%, said the report. The report defines the middle-class in terms of a wealth band instead of an income range. It uses the US as the benchmark country where a middle-class adult is defined as having wealth between $50,000 and $500,000 valued at mid-2015 prices, while using the International Monetary Fund series of purchasing power parity (PPP) values to derive equivalent middle-class wealth bounds in local purchasing power terms for other countries. Going by this definition, only 3% of India s adult population falls in the middle-class wealth category. Total household wealth in India has grown at an average of 8% in domestic currency terms since 2000, found the latest edition of the wealth report. According to the report, between mid-2014 and mid household wealth rose 4.8%. In dollar terms, however, Indian household wealth fell 1% between last year and this year. Still, wealth per adult was just at $4,350 in Most of the personal wealth in India, as in other emerging markets, continues to be in the form of property and real estate. Such assets make up 86% of gross household assets. Personal debt in India remains low at just $346, found the report. At the top of the pyramid, the number of dollar millionaires in India is expected to rise by 65% over the next five years, in line with a similar increase projected across the Asia-Pacific region, according to the report. 34 Kerala Chamber Business News

35 Growth in wealth creation by the middle class in India is higher than its pace globally, but lags far behind the 330% growth in middle class wealth in China By 2020, 305,000 people in India will fall in the category compared with 185,000 currently, shows the report. Globally, the number of dollar millionaires will rise by 46.2%, with the steepest increases likely to be across Asia-Pacific (66%) and Africa (73%). Overall, high-income economies will still account for the bulk of new millionaires, with 14 million adults entering this category in the next five years. Millionaire net wealth is likely to rise by 8.4% annually, as more people enter this segment. Emerging markets will likely account for 9.1% of millionaire wealth in 2020, 1% above current levels, the report said. India now has 2,083 ultra-high-net worth individuals with more than $50 million net wealth, 3% higher than The Business News Corporation Smt.Sheela Kochouseph, Convener, Ladies Forum addressing the gathering. Smt. Pushpy Muricken, Mr. Rahul Ladival, Mr B.Venkatasayee, Mr Gentesh Mathew, Mr.Akhil Tony are also seen. The KCCI Ladies Forum had a diamond start of their programmes of 2015, on Under the leadership of Smt. Sheela Kochouseph, the Convener and Smt. Pushpy Muricken, Joint Convener of KCCI Ladies Forum, a seminar, highlighting the various aspects of Gemology was conducted. The GIA, the world s largest and most respected non-profit institute of learning, grading and gemological research led the Seminar. Smt. Sheela Kochouseph, Convener, KCCI Ladies Forum welcomed the gathering. Mr. Rahul Ladival, Instructor GIA made talk and presentation. Mr B.Venkatasayee, Zonal Head, South Jewellery Retailers GIA spoke on the occasion. Mr Gentesh Mathew, Business Development Executive GIA interacted with the participants. Mr.Akhil Tony, Managing Director, M/s. Orbit Diamonds and Director, M/s. Chungath Jewellery, sponsor of the seminar felicitated on the occasion. The various aspects of the wonder of nature was highlighted in the Seminar. The Seminar could give valid insight into the 4 C s of diamond i.e. Color, Clarity, Cut, Carat Weight. Chairman Mr. Mathew Kuruvithadam, Vice Chairman Mr. Antony Thomas, Finance Director, Mr. K.S. Usman, Former Chairman Mr. K.N.Marzook etc. were present. Vote of thanks was rendered by Smt. Pushpy Muricken, Joint Convener KCCI Ladies Forum. Kerala Chamber Business News 35

36 M.Raseef Vice President, KCCI Southern Region. Managing Director Armtech Solutions Pvt Ltd Revolution Armtech Solutions Private Limited - A Startup venture from Technopark is all set to reach customers with an innovative idea, Pedikaa which is an Android Mobile App with a comprehensive shopping guide. The application is designed on the concept of a Virtual Shopping Mall and is a tool that makes both online and direct showroom shopping a pleasurable experience. Unlike other online shopping applications, Peedikaa differs in its purpose as it will be merging a larger range of online services and products from across Kerala under one hood. Peedikaa is an application which is an amalgam of Shopping, News blogs, Offer portals of major retailers as well as a Hi-Tech Business Directory Service having a virtual showcase which is a first and unique attempt of its kind. The shopping news portal provides consumers with news and updates about the latest launches, shopping festivals, exhibitions, special stories about brands and business, introduction of new entrepreneurs, shopping tips for customers and interviews with business leaders among the many features. In the present scenario most of the E-shopping cart applications are considered threats for direct showroom sales and here comes the significance of this application, as it will help the retailer to deliver their best services and products to the customer. Customers will be provided information on attractive offers, discounts and various contests happening across the city through GPS facility. Besides this, the application will compare the price, brand, make, model and features of a particular product and help customers to buy them at the best rates while saving time. As the application consists of an active review forum the customers are assured of value for money. A hi-tech business directory attached to this application provides the customer with the basic information of an outlet and brand like showroom name, address, , web links, social media links, videos, Google map locater, Wikipedia links, virtual showcase and many more features. Retailers can exhibit their special products and services which help them to increase their in brand sales ratio and facilitate maximum walkins to their outlet. Users can also download PDF brochures from the portal. Users can also avail services like booking bus and movie tickets, food delivery, gift delivery, appointments at spas & saloons, Executive health checkups at reputed hospitals and many more options with niche applications. With the help of exclusive digital mobile promotions retailers can be assured that their products and services reach a substantially large number of clients. They can also sell their products and services by linking their e- commerce or other service applications to Peedikaa. Peedikaa can be downloaded from Google Playstore from the 28th October onwards as a free application. A mobile friendly web version will be made available very soon. Updates regarding Peedikaa App are available on all social media platforms. This truly unique idea was conceptualized by the Managing Director M. Raseef who was very particular that the first product from the Armtech stable should be one that would benefit the customer and business community alike. Armtech s product and business development teams worked with passion and stupendous drive to ensure that this goal was attained in a truly remarkable time frame of 20 days. 36 Kerala Chamber Business News

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38 For the fiscal year ended March, losses at e-commerce companies are expected to soar from the few thousands of crore of rupees reported in the year before From market leaders such as Flipkart to start-ups like Grofers, all are talking about the vast market size, but not the absence of profits The lack of concern about the absence of profits in e- commerce is alarming. From the market leaders such as Flipkart and Snapdeal to the hot new start-ups including Grofers (Locodel Solutions Pvt. Ltd) and PepperTap (Nuvo Logistics Pvt. Ltd), these companies and their investors have talked up the vast market size and the explosive growth in the number of Internet users. Some analysts, such as financial services firm UBS, have said e-commerce sales can touch $60 billion by 2020 from less than $6 billion last year, driven by the manifold growth in smartphone users to more than 500 million. What is missing in this rosy picture is discussion about whether any e-commerce company in India has built, or is in the process of building, a business model that can generate profits. The jury is out on that, judging by the way companies are changing tack and the continued lack of restraint in spending on acquiring customers through advertising and discounts. Valued at $15 billion, India s largest e-commerce firm Flipkart is undergoing a complex transformation where it is not only moving from an inventory model to a marketplace, it is also trying to shift to an advertising-led model from a commission-based one, which is the mainstay of a marketplace. The second largest firm Snapdeal (owned by Jasper Infotech Pvt. Ltd) is aggressively investing in logistics through GoJavas in 38 Kerala Chamber Business News

39 which it picked up a significant minority stake earlier this year. Another large company Ola, the biggest cab hailing service, said it will start buying cars and then lease them to drivers, which is a more cash-intensive way of operating than its original business model of simply connecting customers with drivers who owned the cars. In effect, Ola (promoted by ANI Technologies Pvt. Ltd) moved to a part marketplace, part inventory model. All these moves will either require hundreds of millions of dollars in fresh funds, which will only delay any chances of these companies cutting losses. Marketing expenses and deep discounts are also unlikely to abate meaningfully until consolidation brings moderation in spending. This level of uncertainty about business models of start-ups across the spectrum is worrying and finally prompting investors to step back. The funding rush into Indian start-ups is showing signs of ebbing as profits and viable business models elude e- commerce companies. As the pace of funding slows, investors are now starting to talk about the need for these start-ups to focus on so-called unit economics, after they pumped in more than $8 billion into e-commerce companies since the start of Unit economics is an e-commerce jargon for making money from every user or on every order. No e-commerce company today does that not nearly. For the fiscal year ended March, losses at e-commerce companies are expected to soar from the few thousands of crore of rupees reported in the year before. In all likelihood, losses for the ongoing year will also increase significantly. All these companies are private, so their results can only be obtained once they make regulatory filings later this year. Some others such as Flipkart are listed in Singapore and have a byzantine structure which makes it even tougher to get reliable financial reports. In the obsession over vague metrics such as the growth in smartphone users and gross merchandise value (GMV), which measures the value of goods sold on a site excluding discounts and sales returns, unit economics had taken a backseat. These metrics had given the illusion that businesses can be valued in new ways rather than traditional metrics such as price-toearnings ratio and cash flow. As e-commerce matures, this argument is starting to ring hollow. And as funding dries up, it may be too late for some companies to now start figuring out how to run their businesses in a viable manner. E-commerce firms such as Amazon and Snapdeal are firming up a strategy to leverage the opportunities offered by the National Democratic Alliance (NDA) government s efforts to connect 250,000 villages in India by This includes initiatives such as forays in regional languages and assisted shopping on e- commerce platforms through rural kiosks. At the heart of this is the Rs.20,000- crore National Optical Fibre Network (NOFN), which aims to utilise the existing fibres of state-run units such as BSNL, Railtel and Power Grid to connect gram panchayats and blocks, an the growth of the e-commerce market. The Internet and Mobile Association of India (IAMAI) estimated the Indian e-commerce market at $13.5 billion in 2014 This also comes in the backdrop of the government s plan to set up Rs.5,142 crore rurban project that entails the creation of 300 smart village clusters in the next three years.these will be built as economic hubs offering employment opportunities, bridging the urban-rural divide and reducing distress migration. On the seller side, the NOFN will lead to unprecedented market access for our traditional artisans and small businesses. For the first time they will be able to connect to the buyers directly, bringing much deserved focus to our The Business News Corporation Kerala Chamber Business News 39

40 CA. Jose Zachariah Human consciousness is a part of nature just like electricity. The energy of electricity is infinite and limitless,however, it is not available to us in infinitely and limitlessly due to our inability to tap into it for our full requirement. We tap into it through various sources: the force of waterfall, the force of wind, splitting an atom, splitting of the nucleus, the light of the sun, so on and so forth; but only in a limited way. Man has been doing research for centuries to tap into this energy with greater efficiency. But if this energy is not handled carefully, cautiously, and responsibly in its transmission and end use it could become destructive, disastrous, and fatal to man. Human consciousness, like electricity, is infinite and limitless, but we have our own limitations in tapping it. Unless great caution is taken in the application of this energy, it can become a destructive and disastrous force to man as can be observed in the tragic events that occur all around the world. Great sages and philosophers have shown us several ways and means to tap this energy and use it for the good of mankind. The instruments to tap this energy are the mind, the brain and thought processes collectively called the consciousness. This energy manifests itself in the human body and then acts through it. The only limit to tapping this energy is a serene mindset. The mind must not be contaminated by extreme selfishness, extreme fundamentalism, religious and ideological slavery and feelings of divisions and fragmentations, emotions like fear, resentment,anger, spitefulness, self-pity, depression, etc. By keeping our minds free of these viruses, we can fully tap into the power of our consciousness. To do so, we need to understand our deep relationship with nature. We all go to sleep when the sun goes down and wake up with the sun. All living beings are created in such a way that they are capable of taking in and giving out air in every splitsecond. It is in perfect harmony with nature. The breathing process connects us to the entire universe. There is an indescribable relationship and bond between the sun and our eyes, noise and our ears, the produce of plants and our tongue, air and nose, climate and skin, male and female,mother and child and human consciousness and universal consciousness. No one has a separate existence. It is one movement. Each individual is one among the millions of marvelous super computers that nature has created and each one of us strives to work in perfect harmony with nature. The moment we try to separate ourselves from the rest of humanity we become fish out of water. This creates the division between me and not me. Awareness of this fact helps us to arrive at an elevated consciousness. The present state of human consciousness comes with a lot of limitation to harness this energy. The majority of people use this energy in a very limited way through prayer, devotion to an image, faith in a deity, visiting holy places, pilgrimage, etc. Though religious life enhances the level of consciousness; religious fundamentalism results in bloodshed, violence, vandalism, sacrilege, and reckless destruction. The limitations to tap this unlimited source of energy are due to the wrong programming of our minds. The only way to deprogram and reprogram our minds is selfawareness, a choiceless awareness of the movement of thoughts, 40 Kerala Chamber Business News

41 in the words of J.Krishnamoorthy. The ability to see oneself as one really is, without distortion and prejudice, is, of course, an ardent task. This self-awareness helps our thought process, consciousness, and our mindset undergo fundamental changes. Anybody can develop this technique by being in touch with nature. Ignorance and darkness are the only causes of suffering. To remove ignorance and to dispel darkness we need to create a deep relationship with nature. Love nature, don t try to exploit it and be part of it. Watch the rising sun, the single bulb that removes the darkness of the earth, look up at the the moon and the stars that shine through the clouds at night, feel the gentle breeze, the heat and light of the sun, listen to the arrival and roar of heavy downpours and thunder, see the smile of the stream when it overtakes an obstacle, listen to the sweet songs and chirping of the birds, watch the smile on the face of the innocent children, feel the breath going in and out, listen to the sound of nature by keeping both your palm on your ears, feel the agony of people and animals in pain. Be part of it and be one with it. It refines your mind and takes you to a higher level of consciousness which enables you to tap more and more of this infinite source of pure energy pervading this universe which in turn heals, energizes and blesses all of us in abundance. I have only recorded what has flashed through my mind one fine morning as I awoke. I am not different from anybody else; I am as selfish as anybody else and my mind as contaminated as anybody else s.let us take the journey together and help each other to get out of this dangerous trap. Life is so short. Let us strive to make it enjoyable, meaningful and worth living. Mr.M.K.Ansari, Tap World and Mr.E.S.Jose, A2Z Sanitary Wares are suspended from Kerala Chamber of Commerce and Industry for their deliberate actions against the Chamber. Mr.Shafieque Ahamed K.K., Indol Lubricants is also suspended from Chamber on the same charges. They been found deliberately acting against the interest of the Chamber since the last AGM and that their conduct is found to be prima facie detrimental on the Chamber, observed the Director Board of KCCI while taking the unanimous decision to suspend the three with immediate effect. A small group in the leadership of Mr.M.K.Ansari and Mr.E.S.Jose were continuously raising allegations against KCCI initiated Kerala Trade Centre and TV New Channel and were with malicious intentions only. They were trying to destroy the Chamber by raising such baseless allegations. Their plea for CBI probe was rejected recently by the Honorable High Court of Kerala. The decisions taken by KCCI in related to TV New and Kerala Trade Centre were unanimous and the minutes of the Director Board meetings with the signature of Directors including M.K.Ansari and E.S.Jose are solid evidences. All the documents in this regard are clear and open. The allegations raised by the people who had lost in elections to Director Board were only for defaming the organization. M.K.Ansari was present in the delegation visited Delhi to invite Chief Guest to inaugurate the Kerala Trade Centre. He was a part of all the decisions taken by KCCI regarding Trade Centre and Television Channel. Mr.M.K.Ansari Mr.E.S.Jose At that time he praised the decisions and when failed to be in the Director Board, he started tarnishing the Chamber. KCCI is confident that all the efforts to defame the organization will go in vain. The members and Directors were continuosly demanding actions against these allegators including Mr.M.K.Ansari and E.S.Jose. and KCCI finally decided to suspend these persons for safeguarding the interest of the Chamber and its members. Kerala Chamber Business News 41

42 Agroup of 12 Pacific rim nations led by the US on Monday hammered out the largest mega regional trade agreement which is expected to set higher standards for goods and services. Although the deal aims at sidestepping China in setting rules of international trade, it is also expected to impact India. The Trans-Pacific Partnership (TPP) is a trade agreement under negotiation among 12 nations: Australia, Brunei, Chile, Canada, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Vietnam, which comprise 40% of the world s gross domestic product (GDP). The other two large regional trade agreements being negotiated are the Transatlantic Trade and Investment Partnership (TTIP) between the US and the European Union, and the Regional Comprehensive Economic Partnership (RCEP) between the Association of Southeast Asian Nations and its four free-trade partners, including China and India. In addition to greater market access for goods and services, the areas of negotiations covered by TPP include intellectual property rights, foreign investment, competition policy, environment, labour, state-owned enterprises, e-commerce, competitiveness and supply chains, government procurement, technical barriers to trade, transparency in healthcare technology and pharmaceuticals, and regulatory coherence. Most experts, however, say that overall, a much larger impact of TPP would be through standards or nontariff measures. Harsha Vardhana Singh, former deputy director general of the World Trade Organization, in a discussion paper on TPP last year, said the inclusion of two of the largest economic markets (the US and Japan) in this group implies these norms will effectively become global standards. In this situation, to adequately benefit from international markets, other countries such as India will have to improve their capacities both for developing policies and the capabilities of their producers to upgrade standards in line with the higher requirements. Some other countries have already begun to do so, he added. Speaking at an event in April, Sujata Mehta, economic relations secretary in the foreign ministry, had said that agreements like TPP and TTIP will have huge implications for India. From an Indian perspective, we would hope that the result would not be states accepting restrictions through trade instrumentality which they otherwise would not be willing to accept in the relevant forum or relevant discipline, she said. In other words, trade should not be an arena for settlement of debates on other issues which are not strictly related to trade. They may endanger food safety, they may curb access to medicines by putting constraints on the pharmaceuticals sector and eventually may have an 42 Kerala Chamber Business News

43 impact on sovereign issues. The net outcome will be blurring the local, domestic, regional and global, she added. The big regional trade deals are expected to allow foreign investors to have their grievances against governments arbitrated by dispute-specific panels under the investor-state dispute settlement (ISDS) mechanism clause, she said. What impact it would have on other investment promotion agreements is a matter of grey area, she said. There are different estimates on the material impact on India not being part of the TPP. The Peterson Institute for International Economics (PIIE) in a report released in September said that if China and the rest of the Asia-Pacific Economic Cooperation (Apec) forum join a second stage of the TPP that continues to exclude India, India s annual export losses will approach $50 billion. However, many analysts claim such projections are exaggerated. industry) will be able to improve its price realization in the low-priced markets. It will be able to delay generic competition in all markets, including the US and the EU. The generics decline will be discernible from the end of The full-blown impact of these mega trade deals will be felt by 2020, he added. D.K. Nair, secretary general of the Confederation of Indian Textile Industry, said the TPP will adversely impact the textiles industry because of the yarn forward provision. The yarn forward rule requires clothing to be made from yarn and fabric manufactured in one of the free trade partners to qualify for duty-free treatment under the trade pact. At present, we export yarn and fabric to Vietnam which then makes the textiles and exports to countries like the US. Now, because of the yarn forward rule, they will be under pressure to develop local production, he added. While Vietnam will have zero-duty access to the US The Trans- Pacific Partnership (TPP) is a trade agreement under negotiation among 12 nations which comprise 40% of the world s gross domestic product (GDP) Quoting a study by the East-Centre, Abhijit Das, professor at the Indian Institute of Foreign Trade, said trade diversion as a result of India not joining the TPP will not be more than $4-5 billion over 10 years. India is not in a position to undertake obligations finalized under TPP with respect to intellectual property rights such as evergreening of patents, he added. Indian Pharmaceutical Alliance secretary general D.G. Shah said the branded medicines industry will be a major beneficiary of the trade pact, while the generic drugs industry in India will suffer. It (branded medicines market for textiles, Indian players will have to pay 14-32% duties, which will make them uncompetitive, Nair said. We are in favour of India joining TPP. We should also fasttrack the RCEP negotiations so that the textiles industry can have some advantages in the Asian region, he added. Lobby group Confederation of Indian Industry in a statement on 1 September said India should join the Apec forum, which accounts for nearly 60% of global GDP. This, it said, would provide a pathway for greater integration into the region s economy. The Business News Corporation Kerala Chamber Business News 43

44 Today s geopolitical risks, none is greater than the long arc of instability stretching from the Maghreb to the Afghanistan-Pakistan border. With the Arab Spring an increasingly distant memory, the instability along this arc is deepening. Indeed, of the three initial Arab Spring countries, Libya has become a failed state, Egypt has returned to authoritarian rule, and Tunisia is being economically and politically destabilized by terrorist attacks. The violence and instability of North Africa is now spreading into Sub-Saharan Africa, with the Sahel one of the world s poorest and most environmentally damaged regions now gripped by jihadism, which is also seeping into the Horn of Africa to its east. And, as in Libya, civil wars are raging in Iraq, Syria, Yemen and Somalia, all of which increasingly look like failed states. The region s turmoil (which the United States and its allies, in their pursuit of regime change in Iraq, Libya, Syria, Egypt and elsewhere, helped to fuel) is also undermining previously secure states. The influx of refugees from Syria and Iraq is destabilizing Jordan, Lebanon, and now even Turkey, which is becoming increasingly authoritarian under President Recep Tayyip Erdoðan. Meanwhile, with the conflict between Israel and the Palestinians unresolved, Hamas in Gaza and Hezbollah in Lebanon represent a chronic threat of violent clashes with Israel. In this fluid regional environment, a great proxy struggle for regional dominance between Sunni Saudi Arabia and Shia Iran is playing out violently in Iraq, Syria, Yemen, Bahrain and Lebanon. And 44 Kerala Chamber Business News

45 Indeed, of the three initial Arab Spring countries, Libya has become a failed state, Egypt has returned to authoritarian rule, and Tunisia is being economically and politically destabilized by terrorist attacks while the recent nuclear deal with Iran may reduce the proliferation risk, the lifting of economic sanctions on Iran will provide its leaders with more financial resources to support their Shia proxies. Further east, Afghanistan (where the resurgent Taliban could return to power) and Pakistan (where domestic Islamists pose a continued security threat) risk becoming semi-failed states. And yet, remarkably, even as most of the region began to burn, oil prices collapsed. In the past, geopolitical instability in the region triggered three global recessions. The 1973 Yom Kippur War between Israel and the Arab states caused an oil embargo that tripled prices and led to the stagflation (high unemployment plus inflation) of The Iranian revolution of 1979 led to another embargo and price shock that triggered the global stagflation of And the Iraq invasion of Kuwait in 1990 led to another spike in oil prices that triggered the US and global recession of This time around, instability in the Middle East is far more severe and widespread. But there appears to be no fear premium on oil prices; on the contrary, oil prices have declined sharply since Why? Perhaps the most important reason is that, unlike in the past, the turmoil in the Middle East has not caused a supply shock. Even in the parts of Iraq now controlled by the Islamic State, oil production continues, with output smuggled and sold in foreign markets. And the prospect that sanctions on Iran s oil exports will be phased out implies significant inflows of foreign direct investment aimed at increasing production and export capacity. Indeed, there is a global glut of oil. In North America, the shaleenergy revolution in the US, Canada s oil sands, and the prospect of more onshore and offshore oil production in Mexico (now that its energy sector is open to private and foreign investment) have made the continent less dependent on Middle East supplies. Moreover, South America holds vast hydrocarbon reserves, from Colombia all the way to Argentina, as does East Africa, from Kenya all the way to Mozambique. With the US on the way to achieving energy independence, there is a risk that America and its Western allies will consider the Middle East less strategically important. That belief is wishful thinking: a burning Middle East can destabilize the world in many ways. First, some of these conflicts may yet lead to an actual supply disruption, as in 1973, 1979 and Second, civil wars that turn millions of people into refugees will destabilize Europe economically and socially, which is bound to hit the global economy hard. And the economies and societies of frontline states like Lebanon, Jordan and Turkey, already under severe stress from absorbing millions of such refugees, face greater risks. Third, prolonged misery and hopelessness for millions of Arab young people will create a new generation of desperate jihadists who blame the West for their despair. Some will undoubtedly find their way to Europe and the US and stage terrorist attacks. So, if the West ignores the Middle East or addresses the problems only through military means (the US has spent $2 trillion in its Afghan and Iraqi wars, only to create more instability), rather than relying on diplomacy and financial resources to support growth and job creation, the region s instability will only worsen. Such a choice would haunt the US and Europe and thus the global economy for decades to come. The Business News Corporation Kerala Chamber Business News 45

46 The Maybach had been discontinued by Mercedes parentdaimler around 2012, and the company had then decided to re-introduce it back across the world as a ultra-premium sub-brand under Mercedes.The company drove in two variants Ultra-luxurious Maybach makes a comeback Mercedes brought back the ultra-luxurious Maybach to India as a sub-brand Mercedes- Maybach, pricing the locallyassembled vehicle at Rs 1.7 crore The Maybach had been discontinued by Mercedes parentdaimler around 2012, and the company had then decided to re-introduce it back across the world as a ultra-premium subbrand under Mercedes.The company drove in two variants the Mercedes-Maybach S 600 (fully-imported, 5980cc, 530 horse power) and the S 500 (locally-assembled at Pune factory, 4663cc, 459 horse power). The S600 carries a price of Rs 2.6 crore. The company said that the S600 variant had already been sold out, though it did not give the number of units.the Mercedes-Maybach is distinguished by extra spaciousness with lavishly designed, prestigious interiors which offer extensive scope for individualisation. The most unique safety feature debuting with the Mercedes-Maybach is the rear seat beltbags and cushion bags. The beltbag is an inflatable seat belt strap that reduces the load on the ribcage in a front impact and is thus able to reduce the risk of injury to passengers in the rear. 46 Kerala Chamber Business News

47 Ford launches new version EcoSport Ford India launched the new version of its popular compact sports utility vehicle EcoSport priced between Rs 6.79 lakh and Rs lakh looking to cash in on festive season sales. The new EcoSport comes in three engine options. The petrol variant powered by 1.5 litre engine is priced between Rs 6.79 lakh and Rs 9.93 lakh, while the other petrol option powered by Ford s 1 litre EcoBoost engine is available at a range of Rs 8.53 lakh and Rs 9.89 lakh The diesel variant powered by 1.5 litre engine with improved power is tagged at Rs 7.98 lakh to Rs lakh (ex-showroom Delhi). Ford India said among other features, the new EcoSport is equipped with rain sensing wipers, automatic headlamps and electrochromic mirror that automatically deflects a beam of light from trailing vehicles to minimise obstruction to drivers. Mercedes launches GLE replaces ML Class Mercedes Benz India launched its premium luxury SUV GLE (previously M Class) in two variants- 250D and 350D priced at Rs 58.9 lakhs and Rs 69.9 lakh, respectively. GLE marks the 13th launch for the brand this year. GLE is the first vehicle coming from the Mercedes stable after the German luxury carmaker changed the nomenclature for its SUVs to include G in the name as a tribute to the original DNA of its SUV - the G Wagon. Mercedes Benz India is also strengthening its commitment to Make in India as the new GLE will be produced locally from the day one. The SUV will be replacing the ML Class. The luxury carmaker, which recently expanded its Pune plant, is also in talk with the Maharashtra government for tax relaxation to be extended before taking a call on further investment in India. The GLE is mated to a 6-cylinder turbo-charged diesel engine with the 350 HP, producing 2987 cc of displacement, 190 kw of power and a maximum torque of 620 Nm. The 250 is a 4-cylinder engine producing 150 kw of power and 500 Nm of torque. Kerala Chamber Business News 47

48 The all-new BMW X5 M, BMW X6 M launched High performance models from the BMW M range - the all-new BMW X5 M and the all-new BMW X6 M were launched in India. The tough off-roading characteristics of the BMW xdrive and the stunning power delivery of the BMW M range come together to give form to these winners from the BMW stable. The all-new BMW X5 M is an unbeatable combination of flexibility and superior handling while the allnew BMW X6 M exudes an imposing presence wherever it goes. Commitment to high performance that defines an M vehicle is resoundingly highlighted by the impressive performance figures of both the vehicles. The all-new BMW X5 M and the allnew BMW X6 M are available at BMW dealerships across India as CBU (Completely Built-Up) units. The M TwinPower Turbocharged V8 petrol engine in the all-new BMW X5 M and the all-new BMW X6 M impresses with outstanding responsiveness and agile power delivery at any speed with astonishing efficiency. An output of 423 kw / 575 hp produces a maximum torque of 750 Nm at rpm and accelerates the cars from km / hr in just 4.2 seconds to a top speed of 250 km/h (electronically limited). Renault Kwid Receives Over 25,000 Bookings French car major Renault has received over 25,000 bookings for its entry-level car, Kwid, in less than two weeks since the company launched it in India at a starting price of Rs 2.57 lakh.the new car, which comes in four variants, will compete with Maruti Suzuki s Alto and Hyundai s Eon, besides Tata Motor s Nano. The Renault Kwid has created a huge excitement since its launch and we are thrilled with the response it has received just at the onset of the festive season, Renault India Operations, Country CEO and MD, Sumit Sawhney, 48 Kerala Chamber Business News

49 said in a statement. The Indian consumer has shown tremendous confidence and trust in the Renault brand. The initial response has been very exhilarating and the bookings are constantly increasing. The tier II and tier III cities have also shown huge response reaching out to dealerships with inquiries and booking requests for the car, he added. Kwid, which was launched on 24 September, is powered by the all-new 800 cc engine delivering mileage of kmpl, making it the country s most fuel-efficient petrol car. Renault is betting big on the Kwid as it chases a market share of 5 per cent in the Indian market by 2017, from the current level of just below 2 per cent. With the new model, it s entering the mini car segment, which accounts for nearly 25 per cent of the total automobile sales volumes in the country. Fiat Abarth Punto and Abarth Avventura Launched; Both Priced at 9.95 Lakh Abarth Punto, the second car from the Fiat Chryslerowned performance brand in India, was launched today at 9.95 lakh. However, that wasn t the only Abarth to be launched today; Fiat also launched the performanceoriented version of the Avventura crossover at the same price as the Abarth Punto. Both, the Abarth Punto and the Abarth Avventura, will house a 1.4-litre T-Jet turbocharged petrol unit under the hood that will be mated to a 5-speed manual. The Abarth Punto promises segmentleading performance numbers: 145bhp of power along with a maximum torque of 212Nm. The Abarth Avventura s numbers, on the other hand, puts out 140bhp and 210Nm of peak torque. Design changes on the Fiat Abarth Punto include the Abarth badge on the bonnet instead Fiat, a front grille with contrast horizontal slats, secondary air dams, a sportier rear bumper, and 16-inches dualtone alloy wheels. The side profile of the car also gets Abarth decals. It will be available in two colours - Pearl white and Hip Hop black. The Abarth Avventura will also be available in two colours pearl white and exotica red and in fact will be the most powerful crossover in India. It too comes with features similar to the Punto Evo but is tall and boasts of a ground clearance of 205mm. The Avventura can go from 0-100km/h in 9.9 seconds and the bump in power and torque does wonders to the overall drivability of the car. Chevrolet Trailblazer launched at a price of Rs 26.4 lakh General Motors, the American auto maker, launched its full-sized SUV Chevrolet Trailblazer at a price of Rs 26.4 lakh ex-showroom Delhi. This Toyota Fortuner and Mitsubishi Pajero competitor is GM s third shot in the SUV segment after its Captiva and the Forrester. The SUV comes equipped with a 2.8 litre 4- cylinder engine which produces power of and a maximum torque of 2000 rpm. Sticking to the traditional way of making SUVs, Chevy Trailblazer has a body-on-frame chassis. The company said that the UV will be available for booking Wednesday October 21 onwards at a booking amount of Rs 25,000. Trailblazer will be imported from Thailand through the CBU route. The Business News Corporation Kerala Chamber Business News 49

50 Looks like the much awaited news has finally arrived as several reports have claimed that Arnold Schwarzenegger will be a part of Superstar Rajinikanth s Enthiran 2 and that the same has been confirmed by director Shankar. It is said that Shankar, in an interview to a well known English daily, has confirmed the participation of the Terminator star in Enthiran 2. What more, reports from multiple sources have claimed that the celebrated Hollywood star has already allotted his dates for the movie and that he will shoot in India for 25 days. Also, there were several reports claiming that Arnold will be receiving a fat pay cheque of 100 Crore rupees for his role in the science-fiction adventure. Salman Khan and Sylvester Stallone in a bollywood film together? A leading online portal quoted their source confirming the same. Sylvester who was last seen in Akshay Kumar s Kambakkht Ishq had a blink and miss role in the film. But this time, it seems Sly will have a proper role in the film, if he takes it up. What s the role? He will be playing the trainer who resurrects Sultan s career and gets him back to the wrestling ring after years. Has Sly given his nod? The portal revealed that YRF has already approached the Rocky star but is yet to hear from him. The Hollywood superstar, on the other hand, is not willing to take any chance because he was upset when his role was reduced in Kambakkht Ishq. But if he does accept the offer, this will be one of the major casting coups ever in the history of Bollywood! Manju Warrier was recently presented with a citation from Kerala Sangeetha Nataka Akademi for her contribution to dance. Akademi chairman Soorya Krishnamoorthy presented the award. There are many artistes who are more talented than me and deserve this award more than I do. I wonder if I m experienced enough to be getting this award. I thank the jury and almighty for having chosen me for this rare honor.i accept this honor in all humility and promise that as long as life permits I will continue learning dance. I will strive to improve with sincere practice and dedication. Manju wrote on her facebook page. Sameer Thahir had announced his next film with Dulquer Salmaan a few months ago, and the team was on the lookout for a heroine between 18 and 26 years who knows driving. It has now been confirmed that the heroine of the untitled film will be none other than Premam fame Sai Pallavi! No other detail has been disclosed about the film except its cast, and that it will be a romantic action thriller. Sameer and Dulquer had earlier teamed up for the film Neelakasham Pachakkadal Chuvanna Bhoomi, which was an out-and-out road movie. Sai Pallavi has been etched in Malayali hearts as Malar of Premam, and speculation had been on as to how it would be to see her as another character. Well, let s wait and watch. 50 Kerala Chamber Business News Edited, Printed and Published by K.N.Marzook, Published at Kerala Chamber of Commerce and Industry, Chamber Corner, Shanmugham Road, Cochin, printed at Sterling Print House, Ernakulam

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52 Kerala Chamber Business News (Monthly) November, Price Rs. 25. RNI No: KERENG/2008/ Licensed to post at Kochi PSO.