The BigThinking Blog

• Friday, February 2, 2007 - Wings grow on Hippopotamus..

I have nothing for or against Tata corus deal.  Personally, I think for Tata's, corus is a challenging deal. All Indians will have something to learn from what happens in the next few years.
 
This ode is addressed to politicians and media (including the blogging community), who want to make their life, with glamorous things and leave out the critical and serious things.
 
*****
 
It's a great day today
The Indian money is at play
Holding global giants in its sway
Indian Colony is marching on its way!
 
 
I shout: "Tata has taken over corus
Alexander has lost to Porus
Let's all hail in Chorus
Three cheers to Indian Business!"
 
 
The farmer asks: "Does it increase my production..?
Rice, Sugarcane, Wheat or Cotton..
I don't even need a life of fun..
Without suicide, can I manage one..?
Where is that minister of mine..?
Hiding behind the game of 'nine'..
 
 
I shout: "Tata has taken over corus
The fish has swollen the octopus
Wings grown on Hippopotamus
Three cheers to the Indian-ness!
 
 
The common man asks "What is this corus..?"
Will fares come down in train or bus..?
Fuel and Gas are cooking us
Will these now on cost us less?
Our minister breathes sensex
We are his ex-subjects"
 
 
I shout " Tata has taken over corus
India Inc has shown the guts
It is a sign of progress
Three cheers to Indian Sense!"
 
 
The student asks "Research, Technology or Science
Are there any improvement signs..?
Education, Engineering or Medicine
Will it help me doing fine..?
Our minister has reserved himself out
Waiting for some magic to sprout.."
 
And So I have a basic doubt….
 
 
Tata has taken over corus
Should it be our focus..?
Is it not just usual business ?
Nothing more; Nothing less...
 
 
****
Nations are built on Knowledge and strength
Available with people in breadth and length
To build castles in the cloud
Lay foundations on the ground !
 
 
We ask our me-di-aa and mi-ni-ster
Please do not think anything si-ni-ster
We have a nagging questionnaire
We look for simple, straight answer!
 
 
You are ready to serve sai(nt), bishop or mullah
You are concerned 'fully' about Shilpa
You are ready to support Take-over Tata
Any ideas for Andhraa or Vidharbaaaa.?
 
We know, you don't have a magic wand
But, you need to have some game plan
To strengthen the roots of our land
Not the palm; fingers vote in our hand.!
 
-
-TBT
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• Wednesday, January 10, 2007 - Business Barons..

/***Dedicated to the entreprenuers of India at the bottom rungs of society****/


Actually people see business as a way of making money. So true.

But business is about making money by rendering a service and utilising that money to improve the service to gain more money and further improve that service or increase the services provided. It is not about stocking money in a pot and dying with it.
 
************

To make 100 crores out of 1000 crores is one type of business. To make 10 rupees out of 100 is another type of business. This blog is dedicated to those business barons who make 10 rupees daily out of 100 that they invest.


There is this story that I read some time back. A person wandered into the desert in the hope of crossing it. After several days he had exhausted all his food and water supplies. He still had several days to go before he could cross it over. He started feeling thirsty.

His thirst grew to such an extent that he could not bear it at all. It was like death was near to him and staring at him. As he was pushing himself on, he saw a hand-pump in front of him. He also saw a jug full of water placed near it and there was a piece of paper kept under the jug.

His joy knew no bounds. He was about to drink the water, when he noticed something written in the paper. He started reading it. It was written that the person who sees the hand-pump has two options.

Option 1:
He can drink the water in the jug and proceed

Option 2:
He should pour that water in the hand-pump, and use it to pump out the fresh ground water. This way he can not only quench his thirst, but also fill up the jug full of water for the next thirsty traveller.

This is small business.

The small business that I am talking about is not the small business of the educated class, but even smaller business of mostly the uneducated or some-what educated elite.
 
Millions and millions of Indians thrive on this small business. These people risk on that few hundreds or thousands of rupees that are left with them as the last resort, invest it for their and our country's future and make a living out of it.

Most Indian small businesses are run like that. Roadside tea-vendor, roadside flower vendor, waste paper merchant peddling on his cycle, fruit /vegetable vendors pushing on the four-wheeled carts, platform hawkers, local provision stores, lathe shops, printing press, medical shop, electricians, plumbers, carpenters, small and mid-sized farmers and a wide range of small businesses doing business based on their skills or trading.

In small business, people risk their basic livelihood money including the jewels, 'thaali's, household vessels and clothes to start a new business. They put almost everything they have apart from their own labor and soul into their business.

In this small business, everyday millions of indians are pouring their only jug of water into their hand-pumps and pumping hard, there by enabling a low cost eco-system to evolve and sustain.

************

Without these businesses, we would not be what we are today. Because, it is these businesses, that support the low and middle strata of society, provide them with food, clothing and even housing, that we are able to survive as a society.


But for the road-side food vendor vending food for Rs.5 and less, how can a vast majority of our landless laborers and urban poor eat.? But for the inner-wears that are peddled at Rs.5 and Rs. 10, much of our lower middle-class will not be able to wear their vests and briefs. But for the shirts and lungis that are peddled at Rs.50, much of our poor and lower middle class, will not be able to wear this. If not for these people, we will not have people who can sustain at Rs.20-100 a day.
 

It is their entrepreneur-ship and their ability to create and survive a business at abysmally low costs of operation, that makes us survive as a nation. No. I am not exaggerating it.

It is one thing to make products and services at low cost. It is another thing to distribute them. The entrepreneur-ship skill in making 10 rupee out of 100 rupees is much different and much harder than making 10 crores out of 100 crores. This is known. I am just adding, that it is the most vital element of today's India.
 
How..?

It is this production and distribution chain in things from food stuff to clothes, that keeps India as a place with low cost of living. It is the entrepreneur-ship of millions of people that keeps an eco-system of low cost of living not only for themselves, but for the whole nation.
 
It is this low cost eco-system of production and distribution, that sustains the low and  middle levels of society and keeps our labor costs very low.  It is because of this eco-system, that skilled, un-skilled, educated and un-educated labour is cheap. In a chain reaction, cheap labor enables many more products and services to be available at lower costs.
 
Hence the overall cost of living is lower, which makes india as an attractive labor destination in the fields of software, engineering, BPO's etc.

But for the eco-system that has been setup by the entrepreneur-ship of people whom I mentioned above, the low cost of living in India is not possible.

It may appear that the prosperity of the last few decades is primarily due to entrepreneur-ship of the educated middle-class. True. No denying the fact that the educated middle-class contributed a lot in acquiring businesses from abroad.

But what is it that made them to acquire these business..? Is it that they were technologically superior..? Or is it that they were quality wise superior..?

No.

It is primarily because as a society they were operating at much lower costs compared to the educated counter-parts living in western and U.S. societies. It is this cost competitiveness that brought businesses to them. The cost competitiveness came in because, the society operated at lower costs. Large sections of society operated at lower costs because of these low cost entrepreneurs in production and distribution chain.

It is these poor farmers, platform hawkers, road-side vendors, push-cart vendors, small time traders that created an eco-system of low cost living, by compromising on their standards of living, created a method of producing and delivering products and services at the least cost possible.

Fundamentally the lower costs of operating in our society compared to the costs of operations in developed countries combined with technologies that makes it possible to deliver ubiquitious services and products from anywhere to anywhere is what propelled the development in last few decades.

Hence if those big business barons like Premji and Narayana moorthy achieved something, it is not only because they exploited the opportunities, it is also because the low cost eco-system of India supported it and enabled them to do what they did.
 
*******
 
So what is the big deal about running a business at lower strata of the society..? It is a way of living, u may say.
 
I see it differently. It is the entrreprenuership ability of these people that makes them to pour their last jug of water into the handpump of hope. It is that ability that produces benefits to them and others in the eco-system.
 
The entreprenuership ability of such people need to be appreciated, protected and grown such that they are able to serve the society.
 
********
Most modern Indian middle-class has lost the ability to be entreprenuers, while the lower middle class and poor still retain that ability.  The modern middle-class is being built of technical laborers and nothing more.
 
Unless a nation's middle-class is built of entreprenuers, it cannot sustain its growth for long. The other way of it is, unless the entreprenuers become the middle-class, a nation cannot sustain its growth for long.
 
******

 

Our nation has two choices. It can be efficient or It can be effective.
 
Efficient by allowing centralized economics to overrun small businesses and make most people into labor or bio-mass for few large entreprenuers.
 
Effective by protecting, strengthening and growing more and more small businesses of various kinds, so that our eco-systems are sustained. There will be loss of efficiency, but we will be effective as a society.
 
Our nation's planners should think of both, efficiency and effectiveness while they devise policies. They should not be dogmatic in their approach and ape dogmatic policies that benefit few people.
 
It is a national imperative to produce more and more entreprenuers in the society than creating bio-mass for large businesses of India and other countries by making more software coolies, BPO operators, engineers and technologists for businesses of europe and U.S.
 
It takes GUTS to pour that last jug of water, when we are dying for life, into the handpump of hope. 
 
And that guts is what India needs..
 

-TBT

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• Wednesday, January 3, 2007 - Invest-men-ts - A short story

I am confused, irritated, restless.. whatever u can say. What has gone wrong..? Where did I miss..?


I do not know or understand. This ad-slogan on that hoarding has added fuel to my fire.

I am sharada, 55 years old. My husband venkatesh is around 60. We live in a 2 bedroom flat, that we bought around 25 years back. That time, it was a luxury for most people. We were upwardly mobile people. We are still riddled with the same flat and now it is a burden. We live here, because we have nowhere else to go. Frankly, we cannot afford anything more.

What irritated me, was my meeting with Parimalam, who was living next to me till 10 years back. She had then migrated to Triplicane. I never thought that parimalam would be so happy today. I always thought that parimalam is going to suffer in future for all her foolish actions and I would be happy, because I am intelligent and know to save myself.

I feel, that I have been defeated by her. I have really lost to her.

***

When I got married, that was around 30 years back, my husband was part of a large family. His family included his brothers, sisters, mother, father and also a large cousin's family which would keep visiting almost everyday, making it as if they all live together.


I never wanted to be part of a large family. I have only one life. I wanted to live it for myself. I asked my husband to get separated. I suggested that he give some money to his parents for their sustenance. He did not accept it. But I am not a girl to take things lying down. Our life became a struggle, almost daily, due to incompatibility between his parents and me. Finally, his parents decided to keep us separate. I ensured that my husband does not send more than few hundreds to his family every month.

I also started working. We bought this house. We did not have much contact with his parents. His parents managed to marry off their daughter and settle other sons in life. We used to visit them on occasions. Soon I had kids.

That was the time parimalam came into the next flat as a tenant. Her's was also a large family. Her husband, his parents, other brothers, sisters, cousins et al.. Similar to the family I entered.

But parimalam was a different character. She was a dumbo. She would speak very softly. She would not fight with anybody. She used to serve that large household, always smiling. So many uncles, aunts, cousins used to visit their house. She used to serve each one of them obediently.

I advised parimalam many times against her subservient approach. I advised her to go out and start a family of her own with her husband. She would never be able to save anything for herself or for her kids, if she squanders all her husband's money on his family. I suggested that she better break-off and live a life of her own. She will always smile and refuse to listen to my advice. I stopped advising her after sometime.

I stopped advising her because, she was also of help to me. I did not want that to get stopped. When my kids arrive from school, she used to be at home and take care of them lovingly, as she was next door.

If parimalam had not been there, I would not have been able to work. I would have had to come home early. My husband worked in a far-off place. So I utilised her, like her in-laws.

***
We lived our life royally with our kids. I had a son and daughter. Parimalam also had a son and daughter. We used to go every weekend to hotels, every month end for entertainment and every year-end to new places. Parimalam and her kids could not afford any of this.
Rarely they would go to hotels or entertainment. Even when they go, it would be a large gathering of people.

Parimalam's husband spent his money on not only his own family. He helped his distant cousins, uncles and aunts. He was squandering all his money. In-fact he earned more than my husband. But neither he nor parimalam were suave enough to save money for their future.

We invested in shares, stocks, mutual funds, band deposits, gold and land. These helped me to make my son an engineer and my daughter a doctor. We had to spend nearly 50 lacs on their college education alone. If that was possible, it is only because I did not take the burden of my husband's family.

Parimalam's son and daughter completed some courses from arts colleges. His son did B.Sc. chemistry and daughter did B.Com. They struggled a lot, even for this.
 
I sponsored my son for higher education abroad. He did MS there and got a job in Microsoft.  My daughter went to UK and did higher education there.

Parimalam's son became some medical representative. Parimalam's daughter was working as a nursery school teacher, after her Bcom.

I used to lament about the foolishness of Parimalam. I used to compare her kids with mine and say that she has wasted her life and that of the life of her kids. She would listen to that also smilingly, but never react.

I pitied parimalam a lot.

***

My son married a girl from some other caste in US. We performed their marriage, much against our wishes. We could do nothing else. He and his wife settled there completely acquiring green card. In fact when my daugher-in-law was pregnant, and when my grandson was born, I and my husband offered to go to U.S. to help them.


My son did not want to 'trouble' us. He wanted to 'trouble' only his in-laws. Soon his in-laws migrated and settled in U.S. along with their daughter.

We married our daughter to another Indian doctor family in U.K. itself. She is well settled there. We talk to her over phone at times. She is busy in her daily work with her in-laws, kids and husband.

Some 10 years back, parimalam and her family migrated to Triplicane. I gradually lost touch with her.

***

My husband is retired and I have stopped working. Everyday we get up and see the walls all around. We have not painted them for long. We keep them as a reminder of our busy life.


We look at the ceiling, floors and walls and keep reminiscing those days we spent with our kids. Sometimes, I nudge my husband to go for a walk to temple or park. Sometimes, we keep talking to each other. Sometimes we get bored simply and do not talk to each other.

We keep watching television serials one after another. When I see serials, which depict the daughter-in-law breaking the house, I go mad. My husband would start comparing me with that character mentally and would not talk to me for long time. He has no other go. He thinks I am the person who disturbed his happiness. He does not understand that, but for me, his family would have made him a pauper.

We don't visit anybody. We never had any great relationship with people. My husband's parents died sometime back. We don’t keep in regular touch with people on my side or his side. So it is very difficult to start it again. We live alone.
 

We are financially safe. After all the money we spent on our kids, we have just enough to make us survive for another 15-20 years. Hope we will die before that.


This was the time, I met parimalam, in parthasarathy temple in triplicane.

***

Parimalam looked same. She has not changed. I have changed a lot. I have really become old. She passionately held my hands and we talked for a long time.


She took me to her house in triplicane. I was surprised to find such a big house. If I remember, when she entered triplicane, it was a small house.

She told me "This is his uncle's house. We bought it from him. My husband helped his son, when uncle was in trouble. Now uncle and son are doing well in their business. So they sold this house to us at a very cheap rate."

I asked "Which uncle is this.?"

She says "Raju uncle.. u would be knowing.. His son used to be in our house most of the time. He used to come late in the night after his evening college, as our house was nearby and would eat at our home."

I asked "How is ur son and daughter.. What are they doing..?"

She says "My son was a medical representative.. But this sundaram u know, he helped my son to study MSc chemistry in Mumbai. Then my son did PhD in IIT Delhi. He is a lecturer in IIT now and also doing his post-doctoral research. My daughter, was working in nursery school. Our Moorthy, u know, he took her under him and she did C.A with his help. Now she is practising as an auditor along with her husband in Mumbai. In fact u did not come to her marriage."

I said "Yeah.. I remember.. some problem was there at home at that time of ur daughter's marriage.." and then I asked " who is this sundaram and moorthy.. I don’t remember.."

She says "Sundaram is this fair thin chap, u remember, got involved in an accident and required several lacs for treatment. My father-in-law pledged his properties including our jewels and gave it to him. God's grace he recovered. He became a scientist in BARC. He is very fond of us. In fact he spent all the money, for my son's education. Otherwise, it is not possible for us. And moorthy is our neighbor. U also know him"

I asked "Which moorthy.. the one who used to live in our ground floor. Why should he help u..?"

She says "Yes. Help means what.. no reason. I have not helped him in anything except once when his wife was not well, I made them eat in our home for a month. That is all. It is all god's grace."

I asked "Are u alone with ur husband..?

She says "No.. Our son is with us. I and my husband have taken over the role of my in-laws. I have so many visitors everyday. I do not want to trouble my daughter-in-law with all the work. I spend very little time outside. I have no time really. U please come with ur husband again without fail. My husband will be very happy to see u people".

I could see that she is hard pressed for time. I pitied her for having to work, even at this age.

**
I returned from her home. As I neared my home, my mood changed. I felt that Parimalam is lot happier than me.
 
How..?

Where did I go wrong..? I had scored over parimalam in every aspect of life. I am intelligent. Parimalam was foolish. I worked. Parimalam was house-wife. I planned. Parimalam did not plan. I made my kids professionals. Parimalam did not do anything. Her kids became professionals by themselves. I had a house. Parimalam did not have any. By luck, she has got a house now.
 
And somehow she seems to be happier than me.

She did not make the investments that I made. She did not spend the kind of money that I spent on my kids. What did she invest in, that she is happy today..?

That was the time, I saw that ad slogan on a hoarding " WE INVEST IN PEOPLE".

This irritated me a lot. It sounds highly foolish, idiotic and stupid. Is there any such thing as investing in people..?
 

-TBT

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This blog is about thinking big in all six dimensions. Collection of non-dogmatic set of thoughts

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