Monday, January 28, 2008
Why Invest in India , Innovation and Creativity
India has now regained its innovative spirit. As a result, creativity can be seen in all walks of life in India. In the post license raj era, Indian companies have discovered the benefits on innovation and creativity. Sectors such as software, computers, microelectronics, automobiles, Aerospace, telecommunications, biotechnology, Medicare, pharmacy, entertainment, construction, heavy engineering and others have greatly benefited by the spirit of Indian innovation.India has a long history of creative thinking and InnovationBarring the dark ages of the British rule, India has always been the hub of innovation, invention and creativity. Creativity in India can be seen in diversity of its languages, classical arts and music, literature, folk arts, construction etc. To highlight the historical fact of Indian creativity consider this: India has five forms of classical dances, two forms of classical music, four major religions of the world originated in India, twenty five languages - kanada and telgu being the most developed languages. ( In these languages, what is written can be exactly spoken - i.e., there are no tones, or silent letters etc.). And that beats any other country in the world. (i.e., no country in the world can boast the same)Unfortunately during the British rule, the very foundations of Indian creativity were disturbed. The traditional education system - the "gurukuala" was destroyed. The ecosystem for innovation was destroyed. And that resulted in the dark age of Indian innovation. Yet the culture of innovation survived and is now coming back with a great force.India has now rebuilt its innovation ecosystemThe culture of innovation comes from the attitude of people and the work environment. On a broader scale, it is dominated by the economy, external environment and the support infrastructure. The policy of the government and freedom are probably the biggest factors that contribute towards this cause.A strong pillar for innovation is capital: Both human and money.One of the earliest acts of the newly independent India was to create the foundation for scientific and engineering education. Over the last sixty years, India has built a strong and a robust educational system - which now graduates millions of students every year.Indian stock market and democracy has taken deep roots in the society. Reliance Industries Limited (RIL) was one of the first companies to use the strength of Indian capital markets and build the world’s largest petroleum refinery. Earlier RIL created the world record by having the largest number of individual shareholders for any single company - a feat unsurpassed by any company till date. Having a strong capital markets is essential for innovation. Suzlon, Dr. Reddy Labs, Ranbaxy, Cipla, Biocon, Barth Forge etc, all have tapped into the strength of Indian stock market to raise the required capital for their business enterprise.Government policy and research assistance in form of large R&D centers, PSU, organizations have created the necessary infrastructure to capitalize on for further innovation. ISRO, BARC, IISc, IITs, CPRI, etc., have become incubation centers for innovation. To highlight the value of Indian research centers consider the mission statement of Society for Innovation and Development (SID) at IISc:"The mission of SID is to enable India's innovations in science and technology by creating a purposeful and effective channel to help and assist industries and business establishments to compete and prosper in the face of global competition, turbulent market conditions and fast moving technologies. SID strives to bring the leading intellectuals of IISc and the fruits of their research and development efforts closer to industries and business establishments in a cordial atmosphere with prosperity of the Nation as the ultimate goal."
Lakshya @ 2020
There is a natural temptation to attempt to reduce two decades of future progress to a concise
formula and prepare a manifesto of policies or strategies that will enable the country to realise its full potential during that period. But a list of such policies or strategies will always remain
unsatisfactory unless it is made comprehensive, and a comprehensive list needs to include hundreds of necessary and desirable initiatives.
However, in addition to these policy and strategy prescriptions, or rather underlying and
supporting them, there are some nodal points of action which, when touched, can release the
enormous pent-up energy of the society and throw it into constructive action. It is well that we
conclude our summary by identifying those nodal points which will be most powerful for propelling forward the development of Indian society over the next two decades.
These nine nodes are not independent powers. Each draws upon and contributes to the
power of the other seven. They are mutually supportive and reinforcing. They are not a hierarchy of powers that can be developed sequentially, but rather 8 essential forces that need to be developed simultaneously. As peace and education are essential for growth of employment and living standards, so are food security and employment opportunities essential for peace and social stability, and so forth.
But beyond these physical, social and mental powers, this country possesses something
even more powerful and essential to its existence. India is a nation with a soul and a great spiritual tradition founded upon faith in the power of the spirit to create and manifest in the world. It is our spiritual values, our psychic essence, which is the core strength of Indian civilisation that has sustained it for millenniums and will elevate the quality of our national life in future.
These values possess the ultimate power both for national prosperity and to propel India to be a proud member of the world community. True spirituality will not make us less tolerant. Though our spiritual tradition takes on an infinite variety of forms, they all share a common faith in our capacity as human beings to realise whatever we aspire for.
IN THE WORDS OF APJ ABDUL KALAM
“Our future depends not on what will happen to us, but on what we decide to become,and on the will to create it.”
formula and prepare a manifesto of policies or strategies that will enable the country to realise its full potential during that period. But a list of such policies or strategies will always remain
unsatisfactory unless it is made comprehensive, and a comprehensive list needs to include hundreds of necessary and desirable initiatives.
However, in addition to these policy and strategy prescriptions, or rather underlying and
supporting them, there are some nodal points of action which, when touched, can release the
enormous pent-up energy of the society and throw it into constructive action. It is well that we
conclude our summary by identifying those nodal points which will be most powerful for propelling forward the development of Indian society over the next two decades.
These nine nodes are not independent powers. Each draws upon and contributes to the
power of the other seven. They are mutually supportive and reinforcing. They are not a hierarchy of powers that can be developed sequentially, but rather 8 essential forces that need to be developed simultaneously. As peace and education are essential for growth of employment and living standards, so are food security and employment opportunities essential for peace and social stability, and so forth.
But beyond these physical, social and mental powers, this country possesses something
even more powerful and essential to its existence. India is a nation with a soul and a great spiritual tradition founded upon faith in the power of the spirit to create and manifest in the world. It is our spiritual values, our psychic essence, which is the core strength of Indian civilisation that has sustained it for millenniums and will elevate the quality of our national life in future.
These values possess the ultimate power both for national prosperity and to propel India to be a proud member of the world community. True spirituality will not make us less tolerant. Though our spiritual tradition takes on an infinite variety of forms, they all share a common faith in our capacity as human beings to realise whatever we aspire for.
IN THE WORDS OF APJ ABDUL KALAM
“Our future depends not on what will happen to us, but on what we decide to become,and on the will to create it.”
History of Legend.,
Dhirubhai Ambani
Dhirubhai was born on December 28, 1932, to Hirachand Govardhandas Ambani and Jamunaben Hirachand Ambani. He was the middle of five children, three boys and two girls (Refer Exhibit II for the Dhirubhai family tree). His father was a local school teacher in a village called Chorwad in the Junagadh district of Gujarat. After his matriculation in 1949, Dhirubhai left for Aden, (now in Yemen) at the young age of 17. His first job was to fill gas and collect money at a Shell petrol station, earning Rs 300 a month. Within a few years, he rose to the position of a sales manager (Refer Exhibit III for Chronology of Events) in the same company.
After working for eight years in Aden, Dhirubhai decided to come back to India and start something on his own. On December 31, 1958, he came back to Mumbai and started the Reliance Commercial Corporation (RCC) with a borrowed capital of Rs.15,000.
RCC was mainly involved in exporting commodities like ginger, cardamom, pepper, turmeric, and cashewnut. Using his connections in Aden, he exported a wide range of commodities to Aden. Aden, being a free port attracted lot of exports. In the mid 1960s, the Government of India (GoI) introduced an export promotion scheme under which the earnings from the export of rayon fabrics could be used for the import of nylon fiber. This attracted Dhirubhai's attention and he decided to switch from spices to textiles. In 1966, he set up a spinning mill at Naroda 20 kms from Ahmedabad with borrowed funds of Rs 2,80,000 and registered it (Reliance Textile Industries) as a powerloom unit with a paid up capital of Rs 150,000...
Another program, the High Unit Value Scheme introduced by the GoI in 1971 gave tremendous boost to Reliance textiles. The scheme allowed the import of polyester filament yarn against the export of nylon fabrics. RCC was benefited the most from this scheme and its exports constituted more than 60% of exports under this scheme. There were rumors that the scheme was solely devised for Dhirubhai. Dhirubhai strongly denied the allegations saying that Reliance cannot be blamed for taking advantage of the scheme ‘when others kept their eyes shut.’ He said “I do not consider myself cleverer than my colleagues in the industry. If there was a very large margin of profit, why did they not take advantage of it?”
TAKE A LOOK AROUND: Companies seek to train their own and the MBAs may have the short end of the stick
What do the three letters MBA stand for? We all know the answer, but late Dhirubhai Ambani had his own unique take on it: ‘Mane Bhadhu Aave che’, which in Gujarati means, I know everything. He himself did not go to college. Some say education is killed by degrees; Dhirubhai’s older son Mukesh Ambani dropped out from his MBA programme at Stanford after his first year, returning to assist his father. Mukesh has since taken Reliance to new heights and in the process made himself one of the richest men in the world.
Of course, MBAs have their uses. But there is a new reality on hand: the business of making money has got more complicated, and newer ways of making a pile, too, have emerged. You can practise at the theoretical level, and be good at it like MBAs usually are. Many join firms such as McKinsey and KPMG, which do just that. Or you theorise at the practical level, and help firms and all their stakeholders make money.
The second option seems to be emerging as a good choice. More and more companies are opting to take on candidates who are not MBAs, and grooming them. Why so? Take the banking sector: it is currently estimated to employ 900,000 people and this number is expected to grow to 1.5 million over the next five years. A recent survey by McKinsey made this key point. Indian banks have had access to better talent than other global banks, leading to superior organisation performance on average. However, it is well known that incumbents suffer from a severe lack of specialist skills and new-age leaders. “They need to act urgently to attract, hire,
develop and retain the best available talent to ensure sustained growth in the long term,” says the McKinsey survey. While not all these jobs require an MBA, even meeting the desired number is proving to be a near impossible task
“We try to get in diverse skills, and tap various segments of the entry-level market such as B-schools and CAs,” says Madhavi Lall, head of human resources at Standard Chartered Bank (StanChart). “We are also exploring recruiting engineers with analytical skills to understand banking products. Other non-conventional talent pools such as housewives and part-timers are also being tapped. We recruit on the basis of skills rather than just academic qualifications.”
“We employ individuals and, as a result, we have human material to work with; we don’t employ a particular educational background,” seconds Oscar Rosendahl, global head of HR at A.P. Moller-Maersk Group. “People are fundamentally difficult to change. Therefore, we seek to identify people who have been successful in functioning and developing the tasks they are set.”
Dhirubhai was born on December 28, 1932, to Hirachand Govardhandas Ambani and Jamunaben Hirachand Ambani. He was the middle of five children, three boys and two girls (Refer Exhibit II for the Dhirubhai family tree). His father was a local school teacher in a village called Chorwad in the Junagadh district of Gujarat. After his matriculation in 1949, Dhirubhai left for Aden, (now in Yemen) at the young age of 17. His first job was to fill gas and collect money at a Shell petrol station, earning Rs 300 a month. Within a few years, he rose to the position of a sales manager (Refer Exhibit III for Chronology of Events) in the same company.
After working for eight years in Aden, Dhirubhai decided to come back to India and start something on his own. On December 31, 1958, he came back to Mumbai and started the Reliance Commercial Corporation (RCC) with a borrowed capital of Rs.15,000.
RCC was mainly involved in exporting commodities like ginger, cardamom, pepper, turmeric, and cashewnut. Using his connections in Aden, he exported a wide range of commodities to Aden. Aden, being a free port attracted lot of exports. In the mid 1960s, the Government of India (GoI) introduced an export promotion scheme under which the earnings from the export of rayon fabrics could be used for the import of nylon fiber. This attracted Dhirubhai's attention and he decided to switch from spices to textiles. In 1966, he set up a spinning mill at Naroda 20 kms from Ahmedabad with borrowed funds of Rs 2,80,000 and registered it (Reliance Textile Industries) as a powerloom unit with a paid up capital of Rs 150,000...
Another program, the High Unit Value Scheme introduced by the GoI in 1971 gave tremendous boost to Reliance textiles. The scheme allowed the import of polyester filament yarn against the export of nylon fabrics. RCC was benefited the most from this scheme and its exports constituted more than 60% of exports under this scheme. There were rumors that the scheme was solely devised for Dhirubhai. Dhirubhai strongly denied the allegations saying that Reliance cannot be blamed for taking advantage of the scheme ‘when others kept their eyes shut.’ He said “I do not consider myself cleverer than my colleagues in the industry. If there was a very large margin of profit, why did they not take advantage of it?”
TAKE A LOOK AROUND: Companies seek to train their own and the MBAs may have the short end of the stick
What do the three letters MBA stand for? We all know the answer, but late Dhirubhai Ambani had his own unique take on it: ‘Mane Bhadhu Aave che’, which in Gujarati means, I know everything. He himself did not go to college. Some say education is killed by degrees; Dhirubhai’s older son Mukesh Ambani dropped out from his MBA programme at Stanford after his first year, returning to assist his father. Mukesh has since taken Reliance to new heights and in the process made himself one of the richest men in the world.
Of course, MBAs have their uses. But there is a new reality on hand: the business of making money has got more complicated, and newer ways of making a pile, too, have emerged. You can practise at the theoretical level, and be good at it like MBAs usually are. Many join firms such as McKinsey and KPMG, which do just that. Or you theorise at the practical level, and help firms and all their stakeholders make money.
The second option seems to be emerging as a good choice. More and more companies are opting to take on candidates who are not MBAs, and grooming them. Why so? Take the banking sector: it is currently estimated to employ 900,000 people and this number is expected to grow to 1.5 million over the next five years. A recent survey by McKinsey made this key point. Indian banks have had access to better talent than other global banks, leading to superior organisation performance on average. However, it is well known that incumbents suffer from a severe lack of specialist skills and new-age leaders. “They need to act urgently to attract, hire,
develop and retain the best available talent to ensure sustained growth in the long term,” says the McKinsey survey. While not all these jobs require an MBA, even meeting the desired number is proving to be a near impossible task
“We try to get in diverse skills, and tap various segments of the entry-level market such as B-schools and CAs,” says Madhavi Lall, head of human resources at Standard Chartered Bank (StanChart). “We are also exploring recruiting engineers with analytical skills to understand banking products. Other non-conventional talent pools such as housewives and part-timers are also being tapped. We recruit on the basis of skills rather than just academic qualifications.”
“We employ individuals and, as a result, we have human material to work with; we don’t employ a particular educational background,” seconds Oscar Rosendahl, global head of HR at A.P. Moller-Maersk Group. “People are fundamentally difficult to change. Therefore, we seek to identify people who have been successful in functioning and developing the tasks they are set.”
Quotes for Dhirubhai Ambani
"The country has lost an iconic proof of what an ordinary Indian fired by the spirit of enterprise and driven by determination, can achieve in his own lifetime. Not only did Ambani build a large and diversified business conglomerate but also inspired many first generation entrepreneurs with his success."
"Our dreams have to be bigger. Our ambition higher. Our commitment deeper. And our efforts greater. This is my dream for Reliance and for India."
"Dhirubhai built an empire that is rock solid and he will always remain an icon."
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