General Affairs
President Pranab Mukherjee Stresses On Imparting Of Quality Education
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HYDERABAD: President Pranab Mukherjee today stressed on imparting of quality education and promotion of skill development as he called for drawing inspiration from the ancient era when India was home to renowned higher- learning institutes that attracted foreign scholars.
He rued that despite having a vast higher education system, only a couple of Indian institutes figured in the global top 200 and that too recently.
"When we talk of quality education, skill development is an inherent part of it. Given our population structure, its diversity and vastness, a degree catering to a 'one size fits all' prescription no longer works.
"Skill development is directly related to the employment prospects of our youth and, therefore, the focus has to be on providing quality education with skill development," he said.
Addressing the 98th annual conference of Indian Economic Association in Hyderabad, the president said, "When one talks about education and skill development, we feel a sense of pride when we look back at India's history."
India, in the ancient past, had been the front-runner in education and universities like Takshila (now in Pakistan) and Nalanda had been centres of higher learning for students from India and neighbouring countries, Mr Mukherjee said.
With over 700 universities, including 44 central ones, and around 36,000 colleges, India has one of the largest higher education systems anywhere in the world, he said. "It is equally a matter of concern that till very recently we did not have a single university figuring in the global top 200."
He said it is only now, after concerted efforts and policy interventions, that two of our institutions -- IISC Bangalore and IIT-Delhi -- broke into the top 200 globally.
The need of the hour, therefore, is to focus not only on education per se, but more importantly on quality, he said.
The debate becomes even more pertinent when one talks of it in terms of accessibility on the one hand and privatisation and globalisation of higher education, on the other, he noted.
"While these measures aim at increasing employability, the emphasis also has to be on providing adequate employment opportunities. Growth would be meaningful and inclusive only if it results in improving the standards of the last man, as welfare economists are fond of saying."
India is a young nation and hence it becomes imperative for government and policy makers to come up with policies for achieving growth with job creation, he said.
The Indian economy has proved its resilience -- it has withstood the US financial and eurozone crises, he said. "We need to capitalise on these inherent and intrinsic strengths and create not only more jobs but also an entrepreneurial eco-system," the president added.
The president said the youth today does not wait for opportunities, but creates them. The number of start-ups and their annual turnover are clear indicators in this direction, he said.
"We have Sundar Pichai and Satya Nadella, rising from the Indian education system and heading top global companies (Google and Microsoft respectively). We need to strive to create such employability for our youth on domestic soil too and this would be the litmus test for our economists and policy planners.
"The government's 'Startup India', 'Standup India' programmes aim to do precisely this and I am hopeful that associations like the Indian Economic Association would provide the necessary prescriptive in this area."
The president said, "Growth which favours the top deciles or lower proportion of the population can never be sustainable or desirable."
"Balancing growth with equity and social justice is a fundamental requirement of our democratic polity. A careful study of not just income disparities but also of their source is required. That is the urgent task for economists to undertake," Mr Mukherjee maintained.
On the policy side, the government has launched several programmes such as 'Make in India', 'Digital India' and 'Pradhan Mantri Jan Dhan Yojana' to promote financial inclusion and ensure the poor and disadvantaged are not left out of the benefits of economic growth, he added.
HYDERABAD: President Pranab Mukherjee today stressed on imparting of quality education and promotion of skill development as he called for drawing inspiration from the ancient era when India was home to renowned higher- learning institutes that attracted foreign scholars.He rued that despite having a vast higher education system, only a couple of Indian institutes figured in the global top 200 and that too recently.
"When we talk of quality education, skill development is an inherent part of it. Given our population structure, its diversity and vastness, a degree catering to a 'one size fits all' prescription no longer works.
"Skill development is directly related to the employment prospects of our youth and, therefore, the focus has to be on providing quality education with skill development," he said.
Addressing the 98th annual conference of Indian Economic Association in Hyderabad, the president said, "When one talks about education and skill development, we feel a sense of pride when we look back at India's history."
India, in the ancient past, had been the front-runner in education and universities like Takshila (now in Pakistan) and Nalanda had been centres of higher learning for students from India and neighbouring countries, Mr Mukherjee said.
With over 700 universities, including 44 central ones, and around 36,000 colleges, India has one of the largest higher education systems anywhere in the world, he said. "It is equally a matter of concern that till very recently we did not have a single university figuring in the global top 200."
He said it is only now, after concerted efforts and policy interventions, that two of our institutions -- IISC Bangalore and IIT-Delhi -- broke into the top 200 globally.
The need of the hour, therefore, is to focus not only on education per se, but more importantly on quality, he said.
The debate becomes even more pertinent when one talks of it in terms of accessibility on the one hand and privatisation and globalisation of higher education, on the other, he noted.
"While these measures aim at increasing employability, the emphasis also has to be on providing adequate employment opportunities. Growth would be meaningful and inclusive only if it results in improving the standards of the last man, as welfare economists are fond of saying."
India is a young nation and hence it becomes imperative for government and policy makers to come up with policies for achieving growth with job creation, he said.
The Indian economy has proved its resilience -- it has withstood the US financial and eurozone crises, he said. "We need to capitalise on these inherent and intrinsic strengths and create not only more jobs but also an entrepreneurial eco-system," the president added.
The president said the youth today does not wait for opportunities, but creates them. The number of start-ups and their annual turnover are clear indicators in this direction, he said.
"We have Sundar Pichai and Satya Nadella, rising from the Indian education system and heading top global companies (Google and Microsoft respectively). We need to strive to create such employability for our youth on domestic soil too and this would be the litmus test for our economists and policy planners.
"The government's 'Startup India', 'Standup India' programmes aim to do precisely this and I am hopeful that associations like the Indian Economic Association would provide the necessary prescriptive in this area."
The president said, "Growth which favours the top deciles or lower proportion of the population can never be sustainable or desirable."
"Balancing growth with equity and social justice is a fundamental requirement of our democratic polity. A careful study of not just income disparities but also of their source is required. That is the urgent task for economists to undertake," Mr Mukherjee maintained.
On the policy side, the government has launched several programmes such as 'Make in India', 'Digital India' and 'Pradhan Mantri Jan Dhan Yojana' to promote financial inclusion and ensure the poor and disadvantaged are not left out of the benefits of economic growth, he added.
Cricket Probe Report Doesn't Mention Arun Jaitley, AAP Says More To Come
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NEW DELHI: A three-member committee set up by the Delhi government to probe into the alleged irregularities at the Delhi cricket body DDCA does not mention Union finance minister Arun Jaitley in its report.
Flying in the face of Delhi Chief Minister Arvind Kejriwal's allegations, a copy of the report, does not list any wrongdoing by Mr Jaitley during his 13-year tenure as the DDCA (Delhi and District Cricket Association) chief.
It is also silent on any financial irregularities during Mr Jaitley's tenure, though it mentions issues related to the reconstruction of Delhi's Firoz Shah Kotla stadium.
Off the record, Mr Kejriwal's Aam Aadmi Party leaders are now disputing the report, claiming there was no clean chit for Mr Jaitley.
"There are several other documents which indict Mr Jaitley. This is just one report," a senior leader of Aam Aadmi Party said. "Also the report lists several instances of financial bungling and Mr Jaitley as the head of DDCA cannot be absolved."
The committee was not given the mandate to identify "people behind corruption," another leader said. Instead, it was to identify if there was corruption and suggest further action.
The issue came under media glare after the CBI raids against senior Delhi officer Rajender Kumar, when Mr Kejriwal said the raids were meant to seize the inquiry report as it "revealed Mr Jaitley's role in irregularities at the DDCA".
Mr Jaitley - who has already sued by Mr Kejriwal for defamation -- said he came up with the allegations to deflect attentions from the raid. He had also said the Serious Fraud Investigation Office, under the UPA regime had investigated the issue and could not find a shred of evidence.
The probe committee was set up after lawmaker Kirti Azad -- who was later suspended by the BJP -- and former India captain Bishan Singh Bedi approached Mr Kejriwal for a probe into the matter. The investigation focused the alleged inflation of bills on renovation of the stadium.
While pointing to the technical deficiencies in the stadium, the report has also dealt with allegations of fudging in junior cricket, non-payment of cricketers' dues, legal complaints filed by office-bearers against each other.
The report also mentions the alleged round-tripping of money by incumbent president SP Bansal - which Mr Jaitley said had happened after his tenure.
NEW DELHI: A three-member committee set up by the Delhi government to probe into the alleged irregularities at the Delhi cricket body DDCA does not mention Union finance minister Arun Jaitley in its report.Flying in the face of Delhi Chief Minister Arvind Kejriwal's allegations, a copy of the report, does not list any wrongdoing by Mr Jaitley during his 13-year tenure as the DDCA (Delhi and District Cricket Association) chief.
It is also silent on any financial irregularities during Mr Jaitley's tenure, though it mentions issues related to the reconstruction of Delhi's Firoz Shah Kotla stadium.
Off the record, Mr Kejriwal's Aam Aadmi Party leaders are now disputing the report, claiming there was no clean chit for Mr Jaitley.
"There are several other documents which indict Mr Jaitley. This is just one report," a senior leader of Aam Aadmi Party said. "Also the report lists several instances of financial bungling and Mr Jaitley as the head of DDCA cannot be absolved."
The committee was not given the mandate to identify "people behind corruption," another leader said. Instead, it was to identify if there was corruption and suggest further action.
The issue came under media glare after the CBI raids against senior Delhi officer Rajender Kumar, when Mr Kejriwal said the raids were meant to seize the inquiry report as it "revealed Mr Jaitley's role in irregularities at the DDCA".
Mr Jaitley - who has already sued by Mr Kejriwal for defamation -- said he came up with the allegations to deflect attentions from the raid. He had also said the Serious Fraud Investigation Office, under the UPA regime had investigated the issue and could not find a shred of evidence.
The probe committee was set up after lawmaker Kirti Azad -- who was later suspended by the BJP -- and former India captain Bishan Singh Bedi approached Mr Kejriwal for a probe into the matter. The investigation focused the alleged inflation of bills on renovation of the stadium.
While pointing to the technical deficiencies in the stadium, the report has also dealt with allegations of fudging in junior cricket, non-payment of cricketers' dues, legal complaints filed by office-bearers against each other.
The report also mentions the alleged round-tripping of money by incumbent president SP Bansal - which Mr Jaitley said had happened after his tenure.
Speaker Sumitra Mahajan Pitches For New Parliament Building
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NEW DELHI: India may get a new Parliament building with latest technological facilities as a proposal has been mooted by Lok Sabha Speaker Sumitra Mahajan who has said the existing 88-year-old structure is showing signs of "distress" and will no longer be able to meet the growing demand for space.
She has written to Urban Development Minister M Venkaiah Naidu asking him to consider initiating action for construction of a new Parliament building and suggested two options for the alternative site, one within the Parliament complex itself and another across the Rajpath, sources told PTI in New Delhi today.
The sources said the possible follow-up to the letter is that the Urban Development Ministry will prepare a note for the Cabinet where the matter could be considered.
While giving various reasons for constructing a new building, the Speaker has said that the number of seats in Lok Sabha is likely to go up after 2026 "in accordance with the provisions of the explanation to clause (3) Article 81 of the Constitution" while the present seating capacity of the House is 550 without any scope for increasing it any further.
The sources explained that the number of seats in Lok Sabha may go up after 2026 because of this clause in Article 81 which determines representation on the basis of population determined by the last census (possibly 2021 census).
In her letter, Ms Mahajan has said, "On account of ageing of the Parliament House building and expansion in activities, staff etc, the building has shown signs of distress and over utilization...Under the circumstances, there is an imperative need for the construction of a new state-of-art Parliament building."
She argued that when the present structure was commissioned in 1927, the number of staff, security personnel, media visitors and parliamentary activities were limited but over the years, the parliamentary activities and number of people working there and visitors have increased manifold.
With the expanding scope of Parliamentary oversight functions, increase in number of committees and security requirements, the demand for space has increased several times, the Speaker has underlined.
There are also plans, keeping in view the technological advancements, to equip the lawmakers with latest gadgets to enable them to make the best possible use of technological tools available and to make Parliament paperless, she said.
"This would also require re-designing and refurbishing of the sitting arrangements in the Lok Sabha Chamber. Whereas there are limitations to this in the present sitting arrangements in the Chamber, a new building will offer better scope for a modern Parliament building equipped with latest technological tools," Ms Mahajan said.
Since the building has been declared as 'Heritage Grade-I' structure, there are several limitations on the structural repairs, additions, alterations and modifications to it, the Speaker has said.
She gave two options for the new building. One option for construction of the new building would be within the Parliament complex itself which would require relocation of certain facilities and services, she said.
The second option could be the other side of Rajpath, which is "suitably large area and would enable a free design of a new Parliament House building", Ms Mahajan said.
She suggested that an underground link beneath Rajpath may be constructed to provide connectivity between the existing building and the proposed new complex.
About a year back, a suggestion to build a new Parliament was reportedly made at a meeting of Budget Committee of Parliament including Deputy Speaker of Lok Sabha M Thambidurai, Public Accounts Committee chairman KV Thomas and Estimates Committee chairman Murli Manohar Joshi.
Mr Thomas had said that the existing building was "old" and a new Parliament building should be thought of as provision needed to be made for the next 100 years.
NEW DELHI: India may get a new Parliament building with latest technological facilities as a proposal has been mooted by Lok Sabha Speaker Sumitra Mahajan who has said the existing 88-year-old structure is showing signs of "distress" and will no longer be able to meet the growing demand for space.She has written to Urban Development Minister M Venkaiah Naidu asking him to consider initiating action for construction of a new Parliament building and suggested two options for the alternative site, one within the Parliament complex itself and another across the Rajpath, sources told PTI in New Delhi today.
The sources said the possible follow-up to the letter is that the Urban Development Ministry will prepare a note for the Cabinet where the matter could be considered.
While giving various reasons for constructing a new building, the Speaker has said that the number of seats in Lok Sabha is likely to go up after 2026 "in accordance with the provisions of the explanation to clause (3) Article 81 of the Constitution" while the present seating capacity of the House is 550 without any scope for increasing it any further.
The sources explained that the number of seats in Lok Sabha may go up after 2026 because of this clause in Article 81 which determines representation on the basis of population determined by the last census (possibly 2021 census).
In her letter, Ms Mahajan has said, "On account of ageing of the Parliament House building and expansion in activities, staff etc, the building has shown signs of distress and over utilization...Under the circumstances, there is an imperative need for the construction of a new state-of-art Parliament building."
She argued that when the present structure was commissioned in 1927, the number of staff, security personnel, media visitors and parliamentary activities were limited but over the years, the parliamentary activities and number of people working there and visitors have increased manifold.
With the expanding scope of Parliamentary oversight functions, increase in number of committees and security requirements, the demand for space has increased several times, the Speaker has underlined.
There are also plans, keeping in view the technological advancements, to equip the lawmakers with latest gadgets to enable them to make the best possible use of technological tools available and to make Parliament paperless, she said.
"This would also require re-designing and refurbishing of the sitting arrangements in the Lok Sabha Chamber. Whereas there are limitations to this in the present sitting arrangements in the Chamber, a new building will offer better scope for a modern Parliament building equipped with latest technological tools," Ms Mahajan said.
Since the building has been declared as 'Heritage Grade-I' structure, there are several limitations on the structural repairs, additions, alterations and modifications to it, the Speaker has said.
She gave two options for the new building. One option for construction of the new building would be within the Parliament complex itself which would require relocation of certain facilities and services, she said.
The second option could be the other side of Rajpath, which is "suitably large area and would enable a free design of a new Parliament House building", Ms Mahajan said.
She suggested that an underground link beneath Rajpath may be constructed to provide connectivity between the existing building and the proposed new complex.
About a year back, a suggestion to build a new Parliament was reportedly made at a meeting of Budget Committee of Parliament including Deputy Speaker of Lok Sabha M Thambidurai, Public Accounts Committee chairman KV Thomas and Estimates Committee chairman Murli Manohar Joshi.
Mr Thomas had said that the existing building was "old" and a new Parliament building should be thought of as provision needed to be made for the next 100 years.
Punjab Will Benefit Most If Indo-Pak Relations Improve: Parkash Singh Badal
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LUDHIANA: Hailing Prime Minister Narendra Modi's Lahore visit as a "bold" and "sagacious" move, Punjab Chief Minister Parkash Singh Badal today said his state would benefit the most if Indo-Pak relations improve.
"The initiative of visiting Lahore by Prime Minister during his return journey from Kabul was a bold and sagacious move," Mr Badal said.
Speaking on the sidelines of a function in Ludhiana, he said that in order to normalise relations between the two neighbouring countries, both sides must resolve their long pending problems through negotiations and dialogue process.
The 88-year-old five-time chief minister also said, "Punjab will benefit most and will be the maximum gainer if Indo Pak relations improve."
"In that scenario, the trade will get a big boost and we will definitely benefit from that."
On Friday, Prime Minister Modi had returned home from his three-nation visit which took him to Russia, Afghanistan and a surprise stop-over in Pakistan.
The two-and-a-half hour visit to the neighbouring nation was first by an Indian Prime Minister in nearly 12 years.
The prime minister held talks with his Pakistani counterpart Nawaz Sharif during which they decided to open ways for peace for the "larger good" of the people of the two countries.
Meanwhile, in his reply to a question regarding political leaders joining new parties in Punjab recently, ahead of the 2017 assembly polls, Mr Badal said "this change or defection is not due to any ideology or change of heart but is the result of local complaints of such leaders against their mother parties (parties which they dump)."
"It does not lead to any substantial change in any party's vote bank," he pointed out.
Mr Badal expressed his displeasure with the practice of raking up petty and personal issues by various leaders in an effort to make narrow political gains.
Without naming anyone, he categorically said, the trend must stop as early as possible.
"We should grow out of this and display political maturity and self-control on issues," he said.
LUDHIANA: Hailing Prime Minister Narendra Modi's Lahore visit as a "bold" and "sagacious" move, Punjab Chief Minister Parkash Singh Badal today said his state would benefit the most if Indo-Pak relations improve."The initiative of visiting Lahore by Prime Minister during his return journey from Kabul was a bold and sagacious move," Mr Badal said.
Speaking on the sidelines of a function in Ludhiana, he said that in order to normalise relations between the two neighbouring countries, both sides must resolve their long pending problems through negotiations and dialogue process.
The 88-year-old five-time chief minister also said, "Punjab will benefit most and will be the maximum gainer if Indo Pak relations improve."
"In that scenario, the trade will get a big boost and we will definitely benefit from that."
On Friday, Prime Minister Modi had returned home from his three-nation visit which took him to Russia, Afghanistan and a surprise stop-over in Pakistan.
The two-and-a-half hour visit to the neighbouring nation was first by an Indian Prime Minister in nearly 12 years.
The prime minister held talks with his Pakistani counterpart Nawaz Sharif during which they decided to open ways for peace for the "larger good" of the people of the two countries.
Meanwhile, in his reply to a question regarding political leaders joining new parties in Punjab recently, ahead of the 2017 assembly polls, Mr Badal said "this change or defection is not due to any ideology or change of heart but is the result of local complaints of such leaders against their mother parties (parties which they dump)."
"It does not lead to any substantial change in any party's vote bank," he pointed out.
Mr Badal expressed his displeasure with the practice of raking up petty and personal issues by various leaders in an effort to make narrow political gains.
Without naming anyone, he categorically said, the trend must stop as early as possible.
"We should grow out of this and display political maturity and self-control on issues," he said.
PM Invites People To Connect With Him Through 'Narendra Modi App'
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NEW DELHI: Prime Minister Narendra Modi on Sunday invited people to connect with him by downloading the 'Narendra Modi App'.
During his monthly radio address 'Mann Ki Baat', the Prime Minister said: "Through 'Narendra Modi Mobile App' we can connect with each other. It gives me immense pleasure that people tell me a lot of positive things happening.
"Every citizen can connect with me by downloading 'Narendra Modi App' on his mobile phone. I would appeal to (you to) get connected through this," he said.
"I have to reach out to 125 crore citizens. How can I reach out to them without your help," the Prime Minister added.
NEW DELHI: Prime Minister Narendra Modi on Sunday invited people to connect with him by downloading the 'Narendra Modi App'.During his monthly radio address 'Mann Ki Baat', the Prime Minister said: "Through 'Narendra Modi Mobile App' we can connect with each other. It gives me immense pleasure that people tell me a lot of positive things happening.
"I have to reach out to 125 crore citizens. How can I reach out to them without your help," the Prime Minister added.
Business Affairs
Reliance Industries, Hindustan Petroleum CEO Nishi Vasudeva bag 'energy Oscars'
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Reliance Industries and Hindustan Petroleum CEO Nishi Vasudeva are among a handful of global energy companies and individuals, awarded for their leadership, innovation and performance at the 17th annual Platts Global Energy Awards, often called the Oscars of energy.
Reliance Industries has been awarded under the category of corporate social responsibility, while Vasudeva has bagged the top honours for chief executive of the year.
They were among 18 awardees announced at the Cipriani Wall Street in lower Manhattan, before an audience of 400 energy executives from 15 countries in New York, late on Wednesday.
"Corporate social responsibility award illuminates ever important convergence of profitability and company values," said Platts, a resource on energy, petrochemicals, metals and agriculture, and part of the McGraw Hill group that has such brands as Standard and Poor's its portfolio.
"Rather than an obligation, corporate social responsibility is a voluntary commitment which greatly motivates employee morale, is of fundamental interest to customers, investors and other key stakeholders and is a key determinant of a company's character," the organisation said.
"Reliance, India's second largest company by market value and led by India's richest man (Mukesh Ambani), earned 2015 revenue of $62.5 billion," said Platts, adding that against the requirement of earmarking 2 percent of net profit on social causes, Indian energy companies were the highest spenders last year.
Platts mentioned Reliance Industries' initiatives through institutions such as its foundation in areas like health, rural transformation, sports, disaster response, HIV/AIDS and building parks.
"Judges admired its robust long-standing portfolio, deriving much of its revenue from verticals in the energy value chain, including businesses in exploration and production, refining and marketing and petrochemicals. It has also balanced its portfolio with businesses in media, retail and telecommunications."
On Vasudeva, it said the judges applauded her leadership both in clarity of vision and financial management that helped the state-owned company deliver an increase of more than 200 percent in market value in her first year as chair and managing director.
"She is the first female head of a large Indian oil company and is one of just 14 women to helm a Global Fortune 500 company."
Reliance Industries and Hindustan Petroleum CEO Nishi Vasudeva are among a handful of global energy companies and individuals, awarded for their leadership, innovation and performance at the 17th annual Platts Global Energy Awards, often called the Oscars of energy.
Reliance Industries has been awarded under the category of corporate social responsibility, while Vasudeva has bagged the top honours for chief executive of the year.
They were among 18 awardees announced at the Cipriani Wall Street in lower Manhattan, before an audience of 400 energy executives from 15 countries in New York, late on Wednesday.
"Corporate social responsibility award illuminates ever important convergence of profitability and company values," said Platts, a resource on energy, petrochemicals, metals and agriculture, and part of the McGraw Hill group that has such brands as Standard and Poor's its portfolio.
"Rather than an obligation, corporate social responsibility is a voluntary commitment which greatly motivates employee morale, is of fundamental interest to customers, investors and other key stakeholders and is a key determinant of a company's character," the organisation said.
"Reliance, India's second largest company by market value and led by India's richest man (Mukesh Ambani), earned 2015 revenue of $62.5 billion," said Platts, adding that against the requirement of earmarking 2 percent of net profit on social causes, Indian energy companies were the highest spenders last year.
Platts mentioned Reliance Industries' initiatives through institutions such as its foundation in areas like health, rural transformation, sports, disaster response, HIV/AIDS and building parks.
"Judges admired its robust long-standing portfolio, deriving much of its revenue from verticals in the energy value chain, including businesses in exploration and production, refining and marketing and petrochemicals. It has also balanced its portfolio with businesses in media, retail and telecommunications."
On Vasudeva, it said the judges applauded her leadership both in clarity of vision and financial management that helped the state-owned company deliver an increase of more than 200 percent in market value in her first year as chair and managing director.
"She is the first female head of a large Indian oil company and is one of just 14 women to helm a Global Fortune 500 company."
Government to roll out domestic ranking of higher education institutions by April
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The Human Resource Development (HRD) ministry is keen that the domestic ranking of Indian institutions of higher education is available to students and parents by April next year.
Referring to the National Institution Ranking Framework (NIRF), V S Oberoi, Secretary, Department of Higher Education in HRD ministry, said that at the last count there are nearly 2,800 institutions, which have come on to it.
"I hope on the first Monday in April next year, parents and students will have the ranking with them," he added.
The senior official said that he hoped that the new ranking will encourage domestic institutions to compete to improve and also overcome some of the issues which are there with global rankings.
He said that there is diversity of languages in India, but the global frameworks often don't capture it.
"Global ranking systems rely heavily on perception because of which issues arise that how is perception measured," he added. "This does not mean that government institutions should not aspire to figure in global rankings," he added while speaking at an event organised by the All India Management Association (AIMA) in New Delhi.
Oberoi also suggested that there should be more support for students in terms of loans and financing of education for higher education.
The Human Resource Development (HRD) ministry is keen that the domestic ranking of Indian institutions of higher education is available to students and parents by April next year.
Referring to the National Institution Ranking Framework (NIRF), V S Oberoi, Secretary, Department of Higher Education in HRD ministry, said that at the last count there are nearly 2,800 institutions, which have come on to it.
"I hope on the first Monday in April next year, parents and students will have the ranking with them," he added.
The senior official said that he hoped that the new ranking will encourage domestic institutions to compete to improve and also overcome some of the issues which are there with global rankings.
He said that there is diversity of languages in India, but the global frameworks often don't capture it.
"Global ranking systems rely heavily on perception because of which issues arise that how is perception measured," he added. "This does not mean that government institutions should not aspire to figure in global rankings," he added while speaking at an event organised by the All India Management Association (AIMA) in New Delhi.
Oberoi also suggested that there should be more support for students in terms of loans and financing of education for higher education.
Gold prices fall: 5 factors to watch out for before investing
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Gold prices are expected to trade in a range as investors remained focused on a possible interest rate hike by the US Federal Reserve in its December policy meet.
Higher rates tend to weigh on non-interest-paying gold.
The yellow metal gained some ground last week and held on it this week after the European Central Bank (ECB) disappointed investors with a meagre cut in deposit rate against expectations of more, but it is still far from recovering the nearly 7 per cent it lost in November - the biggest monthly fall since June 2013.
Sugandha Sachdeva of Religare Securities said gold prices aren't likely to recover significantly until the event-risk (Fed's December meet) is gone.
"We are eyeing $1,040-$980 at the Commex in the short-term. Having said that, the depreciation of rupee will support domestic gold prices," Sachdeva added, saying the outlook nonetheless remains weak.
"If gold breaches Rs 24,800-level, it may head to Rs 24,400. This is a major support area...Levels around $980-$1040 offer a strong support area from where prices look to rebound. I do not see it breaking this level very soon," she told BT Online.
From a long-term perspective, Sachdeva advises to invest in gold around Rs 24,400-level, albeit in a staggered manner.
The low prices offer investors the temptation to buy the yellow metal. However, there are factors to be considered before you take the plunge:
1) Dollar strength: The US Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, hit a high of 100.38 in November on expectations of the Fed rate hike, which now seems highly likely after Fed Chair Janet Yellen said this week she was 'looking forward' to a rate hike, indicating the US economy has recovered from recession. The Fed's next policy meeting is to be held on December 15-16. "The next 6-month outlook on gold remains bearish because the strength in dollar index indicates US Fed hike is imminent," said Ajay Kedia of Kedia Commodities to BT Online. The yellow metal loses its appeal when interest rates rise as its value recedes relative to other interest-bearing assets.
2) Gold demand: The World Gold Council in a recent report said the usual uptick in demand in September-December quarter owing to festive season may not be seen this this time as a plunge in prices in the September quarter triggered early purchases, eating into the fourth quarter demand. "Lingering concerns over the health of the rural Indian economy and local gold prices remaining in close proximity to the Rs 27,000/10g level in recent weeks also give reason to adopt a prudent outlook for the usual fourth quarter uplift in Indian demand," the report added. Demand in China is also expected to remain muted, given the slackening macro picture. "But demand should begin to pick up in the closing weeks of the year, as momentum builds ahead of the Chinese New Year in early February," said WGC report.
3) ECB monetary policy: The world's two largest central banks - US Federal Reserve and ECB - stand in opposite directions on formulation of monetary policies. While the former is adamant on reducing quantitative easing, the latter is still printing money. This makes the case for stronger dollar against euro, thus a negative development for gold.
4) Yuan inclusion in SDR: The recent entry of the Chinese currency into International Monetary Fund's Special Drawing Rights (SDR) basket can also have an impact on gold demand as investors may turn more willing to hold yuan at the expense of gold. However, the inclusion may turn out to be positive in the long-term, because its emergence as one of the reserve currencies is negative for dollar.
"There is potential for the yuan's inclusion to be slightly beneficial for the yellow metal in the very long run, because gold generally moves inversely to the US dollar. Thus could be helped if the dollar's role as a reserve and settlement currency is diminished," Jeffrey Nichols, managing director of the consultancy American Precious Metals Advisors and economic consultant for Rosland Capital told commodity website Kitco.
5) Government policies: Expectations of a cut in gold import duty, which currently stands at 10 per cent, by the Narendra Modi government may also alter gold demand scenario. Commerce and Industry Minister Nirmala Sitharaman has urged the Finance Ministry to consider reducing the duty to 2 per cent. "There are expectations that govt may slash import duty in a span of one year... Industry is hoping for 8 per cent cut, but I believe there can only be a duty-cut of 2-4 per cent. If that happens, we may see proportionate fall in gold prices in domestic markets, but rupee depreciation will boost prices," Sugandha Sachdeva of Religare Securities, told BT Online.
Kedia believes the impact of gold monetization schemes, launched by Prime Minister Narendra Modi in November, may also play on domestic and international gold demand. "We don't expect Indian households to tap gold monetisation scheme, owing to their emotional attachment with the yellow metal, but temple gold may enter markets, because temples are heavily paying for security, but they are not getting any reward out of gold hoards," said Kedia.
"If government thoroughly markets the scheme, we may see at least 1000-1500 tonnes of gold entering markets. As net gold import in India stands at around 900-950 tonnes, we may not need to import gold for two years. If India, world's second biggest consumer of gold after China, doesn't import gold, it will create negative impact in the international market and can bring down prices to near $800 level," Kedia added.
Gold prices are expected to trade in a range as investors remained focused on a possible interest rate hike by the US Federal Reserve in its December policy meet.
Higher rates tend to weigh on non-interest-paying gold.
The yellow metal gained some ground last week and held on it this week after the European Central Bank (ECB) disappointed investors with a meagre cut in deposit rate against expectations of more, but it is still far from recovering the nearly 7 per cent it lost in November - the biggest monthly fall since June 2013.
Sugandha Sachdeva of Religare Securities said gold prices aren't likely to recover significantly until the event-risk (Fed's December meet) is gone.
"We are eyeing $1,040-$980 at the Commex in the short-term. Having said that, the depreciation of rupee will support domestic gold prices," Sachdeva added, saying the outlook nonetheless remains weak.
"If gold breaches Rs 24,800-level, it may head to Rs 24,400. This is a major support area...Levels around $980-$1040 offer a strong support area from where prices look to rebound. I do not see it breaking this level very soon," she told BT Online.
From a long-term perspective, Sachdeva advises to invest in gold around Rs 24,400-level, albeit in a staggered manner.
From a long-term perspective, Sachdeva advises to invest in gold around Rs 24,400-level, albeit in a staggered manner.
The low prices offer investors the temptation to buy the yellow metal. However, there are factors to be considered before you take the plunge:
1) Dollar strength: The US Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, hit a high of 100.38 in November on expectations of the Fed rate hike, which now seems highly likely after Fed Chair Janet Yellen said this week she was 'looking forward' to a rate hike, indicating the US economy has recovered from recession. The Fed's next policy meeting is to be held on December 15-16. "The next 6-month outlook on gold remains bearish because the strength in dollar index indicates US Fed hike is imminent," said Ajay Kedia of Kedia Commodities to BT Online. The yellow metal loses its appeal when interest rates rise as its value recedes relative to other interest-bearing assets.
2) Gold demand: The World Gold Council in a recent report said the usual uptick in demand in September-December quarter owing to festive season may not be seen this this time as a plunge in prices in the September quarter triggered early purchases, eating into the fourth quarter demand. "Lingering concerns over the health of the rural Indian economy and local gold prices remaining in close proximity to the Rs 27,000/10g level in recent weeks also give reason to adopt a prudent outlook for the usual fourth quarter uplift in Indian demand," the report added. Demand in China is also expected to remain muted, given the slackening macro picture. "But demand should begin to pick up in the closing weeks of the year, as momentum builds ahead of the Chinese New Year in early February," said WGC report.
3) ECB monetary policy: The world's two largest central banks - US Federal Reserve and ECB - stand in opposite directions on formulation of monetary policies. While the former is adamant on reducing quantitative easing, the latter is still printing money. This makes the case for stronger dollar against euro, thus a negative development for gold.
4) Yuan inclusion in SDR: The recent entry of the Chinese currency into International Monetary Fund's Special Drawing Rights (SDR) basket can also have an impact on gold demand as investors may turn more willing to hold yuan at the expense of gold. However, the inclusion may turn out to be positive in the long-term, because its emergence as one of the reserve currencies is negative for dollar.
"There is potential for the yuan's inclusion to be slightly beneficial for the yellow metal in the very long run, because gold generally moves inversely to the US dollar. Thus could be helped if the dollar's role as a reserve and settlement currency is diminished," Jeffrey Nichols, managing director of the consultancy American Precious Metals Advisors and economic consultant for Rosland Capital told commodity website Kitco.
5) Government policies: Expectations of a cut in gold import duty, which currently stands at 10 per cent, by the Narendra Modi government may also alter gold demand scenario. Commerce and Industry Minister Nirmala Sitharaman has urged the Finance Ministry to consider reducing the duty to 2 per cent. "There are expectations that govt may slash import duty in a span of one year... Industry is hoping for 8 per cent cut, but I believe there can only be a duty-cut of 2-4 per cent. If that happens, we may see proportionate fall in gold prices in domestic markets, but rupee depreciation will boost prices," Sugandha Sachdeva of Religare Securities, told BT Online.
Kedia believes the impact of gold monetization schemes, launched by Prime Minister Narendra Modi in November, may also play on domestic and international gold demand. "We don't expect Indian households to tap gold monetisation scheme, owing to their emotional attachment with the yellow metal, but temple gold may enter markets, because temples are heavily paying for security, but they are not getting any reward out of gold hoards," said Kedia.
"If government thoroughly markets the scheme, we may see at least 1000-1500 tonnes of gold entering markets. As net gold import in India stands at around 900-950 tonnes, we may not need to import gold for two years. If India, world's second biggest consumer of gold after China, doesn't import gold, it will create negative impact in the international market and can bring down prices to near $800 level," Kedia added.
Growth Tonic
-
Vinita Gupta works hard and expects her team to do the same. This year, the 47-year-old CEO of Lupin Ltd even cancelled the usual holiday on Diwali at its Baltimore, US, headquarters, making do with just a puja, a traditional Indian lunch, and a bit of fun and games. It is this dedication to her work that has enabled her to raise the company's US business, which she has been heading since 2005, from a mere five per cent of its revenue then to 45 per cent. Lupin, started by her father Desh Bandhu Gupta in 1968, retained its sixth rank this year (by prescriptions) in the annual list of 10 biggest and fastest-growing US pharma companies compiled by global healthcare industry tracker IMS Health - the only Asian company to figure in the list. Gupta has been CEO since September 2013.
"We've made a strong effort so far, but I cannot say I'm fully satisfied with our performance," says Gupta. Most people would have been. Lupin's consolidated revenue rose to Rs 12,599 crore with a net profit of Rs 2,403 crore in 2014/15, against Rs 5,706 crore and Rs 862 crore five years ago, fuelled largely by its overseas expansion and acquisitions. (The US business alone grew 16 per cent in 2014/15 over the previous year to Rs 5,657 crore.) The company's market cap has risen at a compound annual growth rate (CAGR) of 48.4 per cent in these five years from Rs 18,590 crore to Rs 90,275 crore (as on March 31, 2015), while earnings per share (EPS) have gone up at a CAGR of 29 per cent from Rs 19.36 per share to Rs 53.55. (In comparison, at India's biggest pharma company, Sun Pharmaceutical Industries, EPS increased from Rs 8.80 to Rs 18.90 in the same period.)
BEST CEO PHARMA & HEALTHCARE: LUPIN LTD
INCOME/ 3-YR CAGR: Rs 9,933 crore/ 23 per cent
OP. PROFIT/ 3-YR CAGR: Rs 3,373 crore/ 43 per cent
PAT/ 3-YR CAGR: Rs 2,397 crore/ 44 per cent
AVG MCAP/ 3-YR CAGR: Rs 59,127 crore/ 43 per cent
AVG MCAP (APR-SEPT 2015)/YOY GROWTH: 66 per cent
ROE/ ROCE: 30.1 per cent/ 39.7 per cent
CASH/DEBT: Rs 59 crore/ 45 crore
NET PROFIT MARGIN: 24.30 per cent
Standalone data, net of extraordinary income and expenses
Gupta's goal, however, is even higher. "I want Lupin to become a $5 billion (Rs 32,500 crore) company by 2018," she says. "It is doable. About $4 billion should come from organic growth and the remaining from acquisitions. We need to build upon the good work done so far for the next two years, apart from supplementing it with inorganic opportunities." Indeed, Lupin has been much in the news this year for its acquisitions, especially the takeover of US-based generics maker GAVIS Pharmaceuticals for $880 million in July this year, which gave the company its first manufacturing facility in the US. With 66 products awaiting approval and another 65 under development, most of them in niche dosage forms, GAVIS has immense potential.
GAVIS is the largest of Lupin's acquisitions, of which there have been 16 in the last few years, including three others between May and July - Medquimica Industria Farmaceutica in Brazil, Zao Bio Biocom in Russia and the specialty products portfolio of Temmler Pharma in Germany. Though many of these acquisitions are fairly small, they have created marketing front ends for Lupin across the globe. "Our focus now is to properly assimilate the recently acquired assets to leverage their potential," says a senior company executive.
MILESTONES
2005: Lupin launches its generics prescriptions division in the US. Vinita Gupta heads the facility
2007: Acquires Kyowa Pharmaceutical Industry Company Ltd, a leading generic company in Japan
2008: Acquires stake in Generic Health Pty Ltd, based in Australia, and majority stake in Pharma Dynamics, South Africa
2009: Acquires majority stake in Multicare Pharmaceuticals Philippines Inc
2013: Gupta takes over as global CEO, heading advanced markets and global acquisition strategy
2014: Acquires Laboratorios Grin S.A. Mexico, enters the Latin American Market. Acquires Nanomi B.V. of Netherlands to enter complex injectables space
2015: Acquires specialty product portfolio of Temmler Pharma GmbH & Co. in Germany; GAVIS Pharma in New Jersey, US; Biocom in Russia and Medquimica in Brazil
Developed markets together now contribute 48 per cent to Lupin's revenue (the bulk, no doubt, coming from the US) and emerging markets another 19 per cent, while the domestic market's share has shrunk to 26 per cent from 31 per cent five years ago. "Apart from the US, many new markets are going to be crucial for Lupin in the future," says Gupta. "We expect to do much better in Europe, which we did not pay much attention to in the past and in Japan, our second biggest overseas market, where there has been some slackening of growth. We also expect major growth in markets such as Russia, South Africa, Philippines, Brazil and other South American countries."
Recent hires at top levels from rival global companies underscore Gupta's keenness to make a mark in the new markets. In October, Lupin appointed Fabrice Egros, formerly Deputy CEO and Chief Operating Officer at Russian pharma major NovaMedica, as President, Asia Pacific and Japan, as well as Martin Mercer, former head of Japan-headquartered Astellas Pharma's Latin American business, as its President for Latin America. Thierry Volle, former head of German giant Vifor Pharma's EU and International Business, took over as President for Europe, Middle-East and Africa in November.
The ambit of Lupin's products has also expanded over the years from mere generics to branded, specialty and complex generics. It has spent heavily on research and development, and in creating new facilities. R&D expenditure rose from Rs 530 crore in 2010/11 to Rs 1,118 crore in 2014/15, while capex went up from Rs 480 crore to Rs 758 crore in the same period. Of its 77 products being sold in the US, 31 are market leaders. "We are now a branded generics-focused company with a diversified portfolio of products, including many limited competition products," says Gupta. "We have the infrastructure in place to meet future demand."
Vinita Gupta works hard and expects her team to do the same. This year, the 47-year-old CEO of Lupin Ltd even cancelled the usual holiday on Diwali at its Baltimore, US, headquarters, making do with just a puja, a traditional Indian lunch, and a bit of fun and games. It is this dedication to her work that has enabled her to raise the company's US business, which she has been heading since 2005, from a mere five per cent of its revenue then to 45 per cent. Lupin, started by her father Desh Bandhu Gupta in 1968, retained its sixth rank this year (by prescriptions) in the annual list of 10 biggest and fastest-growing US pharma companies compiled by global healthcare industry tracker IMS Health - the only Asian company to figure in the list. Gupta has been CEO since September 2013.
"We've made a strong effort so far, but I cannot say I'm fully satisfied with our performance," says Gupta. Most people would have been. Lupin's consolidated revenue rose to Rs 12,599 crore with a net profit of Rs 2,403 crore in 2014/15, against Rs 5,706 crore and Rs 862 crore five years ago, fuelled largely by its overseas expansion and acquisitions. (The US business alone grew 16 per cent in 2014/15 over the previous year to Rs 5,657 crore.) The company's market cap has risen at a compound annual growth rate (CAGR) of 48.4 per cent in these five years from Rs 18,590 crore to Rs 90,275 crore (as on March 31, 2015), while earnings per share (EPS) have gone up at a CAGR of 29 per cent from Rs 19.36 per share to Rs 53.55. (In comparison, at India's biggest pharma company, Sun Pharmaceutical Industries, EPS increased from Rs 8.80 to Rs 18.90 in the same period.)
BEST CEO PHARMA & HEALTHCARE: LUPIN LTD
INCOME/ 3-YR CAGR: Rs 9,933 crore/ 23 per cent
OP. PROFIT/ 3-YR CAGR: Rs 3,373 crore/ 43 per cent
OP. PROFIT/ 3-YR CAGR: Rs 3,373 crore/ 43 per cent
PAT/ 3-YR CAGR: Rs 2,397 crore/ 44 per cent
AVG MCAP/ 3-YR CAGR: Rs 59,127 crore/ 43 per cent
AVG MCAP (APR-SEPT 2015)/YOY GROWTH: 66 per cent
ROE/ ROCE: 30.1 per cent/ 39.7 per cent
CASH/DEBT: Rs 59 crore/ 45 crore
NET PROFIT MARGIN: 24.30 per cent
NET PROFIT MARGIN: 24.30 per cent
Standalone data, net of extraordinary income and expenses
Gupta's goal, however, is even higher. "I want Lupin to become a $5 billion (Rs 32,500 crore) company by 2018," she says. "It is doable. About $4 billion should come from organic growth and the remaining from acquisitions. We need to build upon the good work done so far for the next two years, apart from supplementing it with inorganic opportunities." Indeed, Lupin has been much in the news this year for its acquisitions, especially the takeover of US-based generics maker GAVIS Pharmaceuticals for $880 million in July this year, which gave the company its first manufacturing facility in the US. With 66 products awaiting approval and another 65 under development, most of them in niche dosage forms, GAVIS has immense potential.
GAVIS is the largest of Lupin's acquisitions, of which there have been 16 in the last few years, including three others between May and July - Medquimica Industria Farmaceutica in Brazil, Zao Bio Biocom in Russia and the specialty products portfolio of Temmler Pharma in Germany. Though many of these acquisitions are fairly small, they have created marketing front ends for Lupin across the globe. "Our focus now is to properly assimilate the recently acquired assets to leverage their potential," says a senior company executive.
MILESTONES
2005: Lupin launches its generics prescriptions division in the US. Vinita Gupta heads the facility
2007: Acquires Kyowa Pharmaceutical Industry Company Ltd, a leading generic company in Japan
2008: Acquires stake in Generic Health Pty Ltd, based in Australia, and majority stake in Pharma Dynamics, South Africa
2009: Acquires majority stake in Multicare Pharmaceuticals Philippines Inc
2013: Gupta takes over as global CEO, heading advanced markets and global acquisition strategy
2014: Acquires Laboratorios Grin S.A. Mexico, enters the Latin American Market. Acquires Nanomi B.V. of Netherlands to enter complex injectables space
2015: Acquires specialty product portfolio of Temmler Pharma GmbH & Co. in Germany; GAVIS Pharma in New Jersey, US; Biocom in Russia and Medquimica in Brazil
Developed markets together now contribute 48 per cent to Lupin's revenue (the bulk, no doubt, coming from the US) and emerging markets another 19 per cent, while the domestic market's share has shrunk to 26 per cent from 31 per cent five years ago. "Apart from the US, many new markets are going to be crucial for Lupin in the future," says Gupta. "We expect to do much better in Europe, which we did not pay much attention to in the past and in Japan, our second biggest overseas market, where there has been some slackening of growth. We also expect major growth in markets such as Russia, South Africa, Philippines, Brazil and other South American countries."
Recent hires at top levels from rival global companies underscore Gupta's keenness to make a mark in the new markets. In October, Lupin appointed Fabrice Egros, formerly Deputy CEO and Chief Operating Officer at Russian pharma major NovaMedica, as President, Asia Pacific and Japan, as well as Martin Mercer, former head of Japan-headquartered Astellas Pharma's Latin American business, as its President for Latin America. Thierry Volle, former head of German giant Vifor Pharma's EU and International Business, took over as President for Europe, Middle-East and Africa in November.
The ambit of Lupin's products has also expanded over the years from mere generics to branded, specialty and complex generics. It has spent heavily on research and development, and in creating new facilities. R&D expenditure rose from Rs 530 crore in 2010/11 to Rs 1,118 crore in 2014/15, while capex went up from Rs 480 crore to Rs 758 crore in the same period. Of its 77 products being sold in the US, 31 are market leaders. "We are now a branded generics-focused company with a diversified portfolio of products, including many limited competition products," says Gupta. "We have the infrastructure in place to meet future demand."
Cream of the Crop
-
It began as 'Pesticides India' in the early 1960s, but changed its name to 'PI Industries' as its products moved way beyond pesticides. Today, the company, with revenue of Rs 2,137 crore and profit after tax of Rs 243 crore in 2014/15, has two distinct product streams: first, a range of plant protectors and plant nutrients, including pesticides, for the domestic market, and second, custom synthesis and manufacturing (CSM) of agri-chemicals for specific global companies, all overseas. And the man primarily responsible for its growth and transformation is Chairman and Managing Director Salil Singhal, who took over in 1979, after his father PP Singhal, who started the company, passed away aged only 59. Salil Singhal has been adjudged Business Today's Best CEO in his sector this year for the second year running.
The high points of recent times for PI Industries have been the setting up of two new plants in September and December 2015, both at Jambusar, Gujarat, each with an investment of Rs 150 crore, and each intended to serve the CSM needs of a single company (two different customers). The company now has three such dedicated units and is poised to build more. Confidentiality requirements restrain PI Industries from revealing who these units cater to, but its 15-odd CSM clients include global chemical giants and leading innovators such as Bayer AG, BASF SE, DuPont, and Japanese majors Kumiai Chemical Industry and Ihara Chemical Industry. CSM, with an order book of $650 million and making up 55 per cent of the company's revenue in 2014/15, provides an enduring cushion, since domestic sale of agri products is subject to the vagaries of the monsoon.
BEST CEO AGRICULTURE & ALLIED: PI INDUSTRIES
- INCOME/ 3-YR CAGR: Rs 2,137 crore/ 31 per cent
- OP. PROFIT/ 3-YR CAGR:Rs 372 crore/ 38 per cent
- PAT/ 3-YR CAGR: Rs 243 crore/ 51 per cent
- AVG MCAP/ 3-YR CAGR: Rs 5,905 crore/ 70 per cent
- AVG MCAP (APR-SEPT 2015)/YOY GROWTH: 90 per cent
- ROE/ ROCE: 31.2 per cent / 40.5 per cent
- CASH/DEBT: Rs 24 crore/ Rs 115 crore
- NET PROFIT MARGIN: 11.10 per cent
Standalone data, net of extraordinary income and expenses
Singhal, however, does not agree that domestic sales figures are unstable and would always be impacted adversely if rains fail. "India is such a vast country that every year there will be at least some areas enjoying a good monsoon, and there are also areas which are well irrigated," he says. "We have prioritised the regions and suitably optimised our resource allocation which has enabled us to out-perform the sectoral growth. We have carefully chosen new products to add to our portfolio with a clear emphasis on profitability." Three new products were supplied to its clients abroad under the CSM business and two products - both insecticides - were launched in the domestic markets. Indeed, in the last five years, two of the company's products - the herbicide Nominee Gold, and the insecticide Osheen, both of them for paddy - have proved blockbusters, making, as analysts estimate, at least Rs 100 crore in revenue. In 2014/15, CSM exports grew 23 per cent over the past year, while domestic sales rose 19 per cent. "The overall revenue growth was 22 per cent on a blended basis, while net profit went up 32 per cent," says Rajnish Sarna, Executive Director. PI Industries has been listed on the bourses since 1983, with its average market cap currently around Rs 8515.60 crore.
While founder PP Singhal was a Chemistry graduate from Allahabad University, Salil Singhal studied Political Science at St. Xavier's College, Mumbai, and joined his father immediately after graduation. His first big assignment was setting up a pesticides' formulation unit in Agra, which was ultimately shut, for various reasons, in 2009. "The Agra experience was very valuable as it helped me understand the regulatory environment, especially the laws that govern our sector," he says. From initially selling mainly to government departments, the company began marketing its products directly to farmers, which required Singhal to tour the country extensively, visiting villages and accompanying farmers to their fields to check the performance of his company's products. "We had to set up our own distribution network, and I also got involved with that," he says.
The subsequent expansion in range, from only making pesticides to manufacturing the active ingredients that go into them and a host of other agri products besides, was primarily his doing. For all his humanities background, he lays immense stress on scientific research - of the company's total manpower of 1,850, about 170 are engaged in R&D. The Udaipur unit, where PP Singhal began the company, has been completely converted into an R&D hub, with manufacturing being shifted to Panoli and Jambusar in Gujarat. In 2011, PI Industries signed up with Sony Corporation to start a joint venture in Udaipur called the 'PI-Sony Research Centre', to study synthetic organic chemicals for applications in the electronics industry.
MILESTONES
1979: Salil Singhal takes over as CMD
1979: The company forays into manufacturing of active ingredients
1993: Begins operations at Panoli, a major manufacturing site for the company now
1997: Forays into custom synthesis and manufacturing (CSM)
2010: Launches the first major blockbuster - Nominee Gold - a rice herbicide
2015: Sets up two dedicated facilities for global clients in the CSM business
Both analysts and rivals commend PI Industries' and Singhal's performance. "What stands out about the company, especially in the last five years, is the way it has ramped up its CSM business for global clients," says Niket Shah, Vice President of broking firm Motilal Oswal. "Separately, in the domestic agri business, three factors have worked for it - first, its focus on widely sown crops like paddy and wheat; second, its success in leveraging sales of its in-licence products; and third, its good distribution network." Equally effusive is Kapil Mehan, Group CEO, Agri Business, Adventz Group and MD, Zuari Agro Chemicals and Paradip Phosphates. "PI Industries under Singhal has been very innovative in foreseeing the right trends and bringing in products that most suit market needs," he says. Some analysts, however, note one possible threat - if generic versions of some of the off-patent products developed by PI Industries are released, they could erode the company's profit margin in case of some of its products.
PI Industries is still well behind market leader United Phosphorus Ltd (UPL) in revenues, but that does not bother Singhal. "Competing on top line is not my approach," he says. "Excellence is what I care about." He notes that PI Industries' price-earnings ratio and operating profit are comparable to those of the top players in the industry and indeed surpass some of them. "As for UPL, it is primarily driven by overseas acquisitions," he adds. "We are not." He does aim at making PI Industries a billion dollar company, but is unwilling to set any time frame for the goal.
Singhal, now 70, has delegated day-to-day operations entirely to his son Mayank Singhal, who has been with the company since 1996. That leaves him time to focus on strategy, board related matters and mentoring, apart from taking up issues on behalf of the entire sector. He headed the Pesticides Association of India (now called Crop Care Federation of India) for 17 years - its longest serving Chairman. "What is striking about Singhal is his passion for issues that affect the sector," says Mehan of Adventz. "He is always leading from the front, upholding the interests of not just his own company, but of the entire industry and the agriculture sector."
It began as 'Pesticides India' in the early 1960s, but changed its name to 'PI Industries' as its products moved way beyond pesticides. Today, the company, with revenue of Rs 2,137 crore and profit after tax of Rs 243 crore in 2014/15, has two distinct product streams: first, a range of plant protectors and plant nutrients, including pesticides, for the domestic market, and second, custom synthesis and manufacturing (CSM) of agri-chemicals for specific global companies, all overseas. And the man primarily responsible for its growth and transformation is Chairman and Managing Director Salil Singhal, who took over in 1979, after his father PP Singhal, who started the company, passed away aged only 59. Salil Singhal has been adjudged Business Today's Best CEO in his sector this year for the second year running.
The high points of recent times for PI Industries have been the setting up of two new plants in September and December 2015, both at Jambusar, Gujarat, each with an investment of Rs 150 crore, and each intended to serve the CSM needs of a single company (two different customers). The company now has three such dedicated units and is poised to build more. Confidentiality requirements restrain PI Industries from revealing who these units cater to, but its 15-odd CSM clients include global chemical giants and leading innovators such as Bayer AG, BASF SE, DuPont, and Japanese majors Kumiai Chemical Industry and Ihara Chemical Industry. CSM, with an order book of $650 million and making up 55 per cent of the company's revenue in 2014/15, provides an enduring cushion, since domestic sale of agri products is subject to the vagaries of the monsoon.
BEST CEO AGRICULTURE & ALLIED: PI INDUSTRIES
- INCOME/ 3-YR CAGR: Rs 2,137 crore/ 31 per cent
- OP. PROFIT/ 3-YR CAGR:Rs 372 crore/ 38 per cent
- PAT/ 3-YR CAGR: Rs 243 crore/ 51 per cent
- AVG MCAP/ 3-YR CAGR: Rs 5,905 crore/ 70 per cent
- AVG MCAP (APR-SEPT 2015)/YOY GROWTH: 90 per cent
- ROE/ ROCE: 31.2 per cent / 40.5 per cent
- CASH/DEBT: Rs 24 crore/ Rs 115 crore
- NET PROFIT MARGIN: 11.10 per cent
Singhal, however, does not agree that domestic sales figures are unstable and would always be impacted adversely if rains fail. "India is such a vast country that every year there will be at least some areas enjoying a good monsoon, and there are also areas which are well irrigated," he says. "We have prioritised the regions and suitably optimised our resource allocation which has enabled us to out-perform the sectoral growth. We have carefully chosen new products to add to our portfolio with a clear emphasis on profitability." Three new products were supplied to its clients abroad under the CSM business and two products - both insecticides - were launched in the domestic markets. Indeed, in the last five years, two of the company's products - the herbicide Nominee Gold, and the insecticide Osheen, both of them for paddy - have proved blockbusters, making, as analysts estimate, at least Rs 100 crore in revenue. In 2014/15, CSM exports grew 23 per cent over the past year, while domestic sales rose 19 per cent. "The overall revenue growth was 22 per cent on a blended basis, while net profit went up 32 per cent," says Rajnish Sarna, Executive Director. PI Industries has been listed on the bourses since 1983, with its average market cap currently around Rs 8515.60 crore.
While founder PP Singhal was a Chemistry graduate from Allahabad University, Salil Singhal studied Political Science at St. Xavier's College, Mumbai, and joined his father immediately after graduation. His first big assignment was setting up a pesticides' formulation unit in Agra, which was ultimately shut, for various reasons, in 2009. "The Agra experience was very valuable as it helped me understand the regulatory environment, especially the laws that govern our sector," he says. From initially selling mainly to government departments, the company began marketing its products directly to farmers, which required Singhal to tour the country extensively, visiting villages and accompanying farmers to their fields to check the performance of his company's products. "We had to set up our own distribution network, and I also got involved with that," he says.
The subsequent expansion in range, from only making pesticides to manufacturing the active ingredients that go into them and a host of other agri products besides, was primarily his doing. For all his humanities background, he lays immense stress on scientific research - of the company's total manpower of 1,850, about 170 are engaged in R&D. The Udaipur unit, where PP Singhal began the company, has been completely converted into an R&D hub, with manufacturing being shifted to Panoli and Jambusar in Gujarat. In 2011, PI Industries signed up with Sony Corporation to start a joint venture in Udaipur called the 'PI-Sony Research Centre', to study synthetic organic chemicals for applications in the electronics industry.
MILESTONES
1979: Salil Singhal takes over as CMD
1979: The company forays into manufacturing of active ingredients
1993: Begins operations at Panoli, a major manufacturing site for the company now
1997: Forays into custom synthesis and manufacturing (CSM)
2010: Launches the first major blockbuster - Nominee Gold - a rice herbicide
2015: Sets up two dedicated facilities for global clients in the CSM business
Both analysts and rivals commend PI Industries' and Singhal's performance. "What stands out about the company, especially in the last five years, is the way it has ramped up its CSM business for global clients," says Niket Shah, Vice President of broking firm Motilal Oswal. "Separately, in the domestic agri business, three factors have worked for it - first, its focus on widely sown crops like paddy and wheat; second, its success in leveraging sales of its in-licence products; and third, its good distribution network." Equally effusive is Kapil Mehan, Group CEO, Agri Business, Adventz Group and MD, Zuari Agro Chemicals and Paradip Phosphates. "PI Industries under Singhal has been very innovative in foreseeing the right trends and bringing in products that most suit market needs," he says. Some analysts, however, note one possible threat - if generic versions of some of the off-patent products developed by PI Industries are released, they could erode the company's profit margin in case of some of its products.
PI Industries is still well behind market leader United Phosphorus Ltd (UPL) in revenues, but that does not bother Singhal. "Competing on top line is not my approach," he says. "Excellence is what I care about." He notes that PI Industries' price-earnings ratio and operating profit are comparable to those of the top players in the industry and indeed surpass some of them. "As for UPL, it is primarily driven by overseas acquisitions," he adds. "We are not." He does aim at making PI Industries a billion dollar company, but is unwilling to set any time frame for the goal.
Singhal, now 70, has delegated day-to-day operations entirely to his son Mayank Singhal, who has been with the company since 1996. That leaves him time to focus on strategy, board related matters and mentoring, apart from taking up issues on behalf of the entire sector. He headed the Pesticides Association of India (now called Crop Care Federation of India) for 17 years - its longest serving Chairman. "What is striking about Singhal is his passion for issues that affect the sector," says Mehan of Adventz. "He is always leading from the front, upholding the interests of not just his own company, but of the entire industry and the agriculture sector."
General Awareness
Indian-American doctor is Ohio’s first Poet Laureate
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- Amit Majmudar, a diagnostic nuclear radiologist, was named to the two-year honorary position by Governor John Kasich who created the honour.
- He was recommended for the position by the Ohio Poet Laureate Selection Committee, following an extensive state-wide nomination and review process.
About Amit Majmudar
Mr. Majmudar is a medical doctor and serves as a diagnostic and nuclear radiologist in Columbus. The legislation creating the position of the State’s official poet was passed in 2014.
- Throughout his medical career, Mr. Majmudar has nurtured his writing as a poet, novelist and essayist. He has published two novels, Partitions in 2009 and The Abundance in 2011.
- Majmudar’s poetry has appeared in numerous publications including The New Yorker –The New York Review of Books, The Atlantic Monthly, Poetry Magazine, The Antioch Review and The Best of the Best American Poetry 1988-2012.
- His essays and literary criticism have appeared in a number of publications as well including the New York Times, The Kenyon Review and Poetry Daily.
His next collection of poems ‘Dothead’ will be published in March by Alfred A. Knopf.
- Amit Majmudar, a diagnostic nuclear radiologist, was named to the two-year honorary position by Governor John Kasich who created the honour.
- He was recommended for the position by the Ohio Poet Laureate Selection Committee, following an extensive state-wide nomination and review process.
Mr. Majmudar is a medical doctor and serves as a diagnostic and nuclear radiologist in Columbus. The legislation creating the position of the State’s official poet was passed in 2014.- Throughout his medical career, Mr. Majmudar has nurtured his writing as a poet, novelist and essayist. He has published two novels, Partitions in 2009 and The Abundance in 2011.
- Majmudar’s poetry has appeared in numerous publications including The New Yorker –The New York Review of Books, The Atlantic Monthly, Poetry Magazine, The Antioch Review and The Best of the Best American Poetry 1988-2012.
- His essays and literary criticism have appeared in a number of publications as well including the New York Times, The Kenyon Review and Poetry Daily.
His next collection of poems ‘Dothead’ will be published in March by Alfred A. Knopf.
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