Thursday, September 27, 2012

Guest lecture by Mr. Pradip Baijal

Interaction with Mr. Pradip Baijal

          It is not often that an institution is graced with the presence of an eminent person from the industry like Mr. Pradip Baijal. The Department of Management Studies recently had one such opportunity. We were lucky to have had the opportunity to interview him and gain valuable insights into the various sectors he was a part of. It was indeed a one of a kind experience as he tapped into almost every sector of the country, sharing his views on their current situation and how they can be redeemed from the same.  A retired officer from the Indian Administrative Services Mr. Baijal has served as the chairman of the Telecom Regulatory Authority of India (TRAI) for three years. He has also been an important part of the Power and Steel sectors where he has had a hand in writing the regulations for the same. He has also served as a visiting fellow at Oxford University for a year on privatizations and reforms.  Prior to being appointed as the Chairman of TRAI he worked as a Secretary in the Disinvestment ministry for the Government of India for almost three years.

          After retirement, he started a strategic consulting company. His clients included the two biggest  corporates in India, the Tata’s and RIL, besides many MNCs, Indian companies, multilateral institutions like the World Bank, International Telecommunication Union (for restructuring telecom sector in many developing countries). He was on the Boards of Nestle, GVK and Patni Computers and advisory boards of IOC and IDFC. He also served as the Chairman of an Advisory committee to the Petroleum and Natural Gas Regulatory Board in India. He has been giving lectures on Indian regulation, restructuring, business environment etc. to management schools, International Financial Institutions in USA, UK, Singapore, HongKong and India. He was also a member of the Indo-American think-tank Aspen. Currently, he has left all assignments, and is concentrating on writing a book on the fascinating ‘India Unwired’, with a Professor in USA..

          It was indeed a pleasure interacting with him as it vastly enhanced our knowledge. He shared some of his experiences in the various sectors he was a part of and gave us some valuable advice as to how a career path is to be planned. He also shared his views on the future of the Telecom industry. He stressed on how important it is for business schools to work in collaboration with universities in the west or in Europe. Mutual benefits could be obtained from this venture according to him. Such an interaction is always beneficial for the Indian counterpart. He cited the example of IIM Ahmedabad and now the institution has benefited from its interactions with various universities from the United States. As a country he also stated that instead of continuously trying to emulate practices in the west or in Europe we could start looking towards a country like China and learn heaps from them. China is a country with a similar make up as that of India. It is multi-cultural and populous just like India is. The problems faced in both countries are similar. He stressed on the importance of generating power by constructing more dams. According to Mr. Baijal India has a cornucopia of untapped locations where dams could be erected. The north & north eastern part of our country is full of such locations that could be capable of generating high volumes of useful power.

A couple of specific questions from the newsletter team followed this session:

Q. Among all the positions you have held during your illustrious career which has been the most challenging of them all?

A.
Among all the positions Mr. Baijal has held, his tenure as District Magistrate of the undivided Bastar in Madhya Pradesh (area larger than the state of Kerala) was the most challenging. This was at a very young age of around 30, where he encountered the emergence of Naxalism. According to Mr. Baijal, Naxalism is caused more by the Government than the Naxals themselves. He always believed that such problems should be solved in an amicable manner. Meetings with the Naxals would sometimes go on till around 11 pm with no solution in sight. He adopted the policy of understanding things from their perspective and then trying to come up with a solution which would benefit both the administration and the Naxals, rather than go for Police solutions.

Q. With corruption on the rise in almost every sphere of the Government, How do you foresee the future? Will India have its own jasmine revolution?

A. According to Mr. Baijal, the situation in India is very grim. He expects a radical change but says that it is difficult to pin point the course India would take, at the moment. He further stated that the Government is run not only by politicians but also by bureaucrats who are some of the brightest minds in the country. Still the country suffers from problems like inadequate power supply. It is only when these basic concerns are addressed that India will have a brighter future. According to him, even the brightest minds are mostly in need of direction, which sometimes the politicians do provide.

Q. How do you view the disinvestment of public sector companies in the post liberalized economy?


A. According to Mr. Baijal, the disinvestment of public sector firms, and reforms, are a boon for the economy as privatization is the best way forward to improve productivity of industry and economy. The most apt example that he cited was that of the telecom sector. The explosive growth of telecom density after the entry of the private players shows that a higher amount of efficiency and effectiveness can be achieved with private players competing in a free market economy.The role of Government should be limited to regulating the sector, in a transparent manner and encouraging competition.

Q. What according to you Sir lies in the future of the power sector in our country?

A. According to Mr. Baijal, India is severely short on its energy needs.The way forward is utilizing hydro energy and nuclear power. We have a cornucopia of Thorium deposits in Kerala and Uranium deposits in North East India. This ought to be utilized.We are moving towards the third stage of nuclear technology in which thorium would be an essential element. The environmental problems caused by the generation of hydroelectric power should be compared with the disadvantages of generating power from other sources. Even though we have abundant sources of Hydel power, we do not develop them due to misguided environment bottlenecks. Lack of adequate and reliable power supply leads to poor productivity which in turn affects the economy which leads to increased unemployment and poverty. If this problem is to be eradicated we must first start hydel sources of energy.

Q. India is a country where sunlight is freely and abundantly available. Why is solar energy not as widely used as a source of power?

A. According to Mr. Baijal, solar energy though abundantly available is a very expensive. May be it would develop as a viable source in some years.

Q. What kind of advice would you give students and teachers from B-schools all over India with regards to what is expected from the corporates?

A. According to Mr. Baijal, Even though most institutions today are well endowed with the requisites for carrying out day to day businesses, it is the extra steps that the institute takes which separates a good B-school from an average one. This requires collaboration from both the instructors and the students. The best way for a B-school to get itself recognized is to establish links with prominent institutes in the developed world. This kind of interaction promotes the right kind of learning among students which enables them to be more pragmatic in their approach. These are the kind of students that the industry looks for.

Q. Could you tell us a bit more about the book you are currently working on?

A. It is called “India unwired” but that’s all I will say about it. To find out more you will just have to read it. This is about the new model of telephony and broadband, developing in India.

Q. What do you see in India’s future?

A. After Web 1.0 and Web 2.0, the age of Web 3.0 is fast approaching. The introduction of
Web 3.0 will create a tectonic shift of sorts. Research methodologies would be transformed completely. This would be a lot more interactive and online businesses would pick up to a great extent. This technology would make its appearance somewhere around 2015. “Be ready to be amazed”, he added. The telecom sector would also move towards 4G and eventually towards 5G which would entail a bandwidth much higher. Speeds would be phenomenal. The little vexing circle that appears in the middle of your screen would be no more. However, a lot of structural changes are required in the telecom network, mostly moving towards unified and converged licensing ensuring much better utilization of scarce resources in these networks, particularly spectrum, and giving the freedom to operators to innovate at a much higher plane, rather than the Government micro-managing inefficiently. As far as the power sector is concerned Pre-paid contracted power delivered on open access, already provided in the Electricity Act/rules/regulations/government policies, yet very inefficiently implemented, will be the next big thing. This would ensure that power is delivered efficiently, and used judicially. IT would also minimize the power cuts that most people in our country face. This has already been adopted in Germany and will soon make its presence felt in our country.


These were some of the brilliant insights that Mr. Baijal shared with the ever so grateful students from the Department of Management Studies at IIT, Roorkee. After this interaction the only thought in my mind was that I wish we had more time.

Guest Lecture by Mr. Pratik Rajeevan

         Mr. Pratik Rajeevan, a Department of Management Studies, IIT Rookee alumni, was at the department on 16th September, 2012 to share his professional experiences and to give the students insights on investment banking and private equity. The session started at ten in the morning.

          He explained the concepts of investment banking in words which would even be simple for a layman to understand. According to him, when a firm is in trouble and needs capital, it usually turns to an investment bank which acts as broker in arranging capital from the strategic investors for the firm. He also talked about the financial models, balance sheets and shared some of the experiences and challenges he faced in his professional life thus far. He also advised students to differentiate themselves from other B-school students by working hard and enhancing their knowledge by participating in B-Plan events, creating financial models etc. On the whole, it was a knowledge enriched and motivating session that answered many of the questions in the minds of management students looking to build a career in investment banking sector.

Below is a brief description of Mr. Pratik’s profile:

          Mr. Pratik is an investment analyst in GenX360 India Advisers Private Ltd., a private equity firm specializing in buyouts of industrial business to business companies in the middle market. He has worked closely with the Company management through the holding period and successfully monetized the business via sale to a strategic. In addition to specialty chemicals, he focuses on the logistics space.

           Before joining the GenNx team, Pratik Rajeevan worked two years as an Analyst with the Wachovia Media & Communications off-shore Investment Banking team at Genpact. As an integral part of the pitching team he worked on idea generation, building sector capabilities and maintaining valuation models. In recognition for his exemplary contribution, he was awarded the FORCE Management Award 2007.

           Pratik has interned with TNS-Global (Taylor Nelson Sofres) and helped design a marketing strategy to effectively target new demographics for its key client. Pratik holds a Bachelor of Engineering degree in Electronics & Communications from the University of Mumbai and a Masters in Business Administration from IIT Roorkee. He is a recipient of IEEE: Certificate of Merit, Dr. Homi Bhabha Young Scientist Gold Medal and the 1st rank holder in Electronics across Maharashtra state (Higher Secondary School).

Friday, March 2, 2012

Industrial Trip - February 2012

          Our Journey started with full enthusiasm as we left for SIDCUL, U.S Nagar on a cold winter morning of 9th February. We reached Bajaj Auto plant at 4PM where we were warmly welcomed. The campus was beautiful and we instantly got over the tiredness of the eight hour long journey. Bajaj Auto Ltd, at SIDCUL was started in the year 2007, now manufactures two motorcycles (Platina and Discover) which mostly cater to demands of the domestic market. They have 17 vendors and all of them are located nearby. They have four assembly lines which operate in two shifts, manufacturing 4000 vehicles per day & targeting 1 Lakh vehicles per month. Bajaj is the top exporter of bike in India, exporting to more than 40 countries around the world. Two mentors were allotted to us. They shared the practices of “Kaizen”, “Jishu Hozen” and how they are implemented at Bajaj Auto Ltd. The mission of the company is “Zero Defect, Zero Accident & Zero Breakdown”. The Bajaj plant at SIDCUL believes in Energy conservation & Green technology. The plant boosts of Zero discharge, Rain water harvesting & SHE Management system. Guided by the mentors, we left for the assembly line where Platina was being assembled. We all were awestruck by the mere sight of the vastness of the line and the complexities of the operations. The mentors were very cooperative and explained various aspects of the operations: the setting of daily targets, the quality checks at various stages, the procurement process from the ancillaries, use of automation etc. Most of the vendors of Bajaj are nearby and Bajaj Auto operates cohesively with them in every aspect. They shared with us issues, they face, related to human resource and ways they are tackled by Employee engagement, job rotation etc. Various sport events are organized to keep the moral of the employees high. Reward and recognition are given to the employees who demonstrate high quality at work. Safety of employees is given a high priority and many processes are in place which make sure the safety requirements are met as workers erforms their jobs. Towards the end, we had a healthy discussion with the Senior Manager, Mr. Ashutosh Sharma. He enlightened us about the business strategy of the company in the past and in the coming future and patiently answered the queries we had from the management point of view. As we bid adieu to Bajaj, he expressed his will to strengthen the relationship with DoMS, IIT Roorkee in the times to come.

          After the visit to Bajaj, it was time to take rest & prepare for the next day schedule. We were fortunate to have lodging at International Guest House of G.B. Pant Nagar University. Our stay at Pant Nagar University was short but worth remembering. After having breakfast & checking out from G.B. Pant Nagar University’s Guest House on the morning of 10th February, we headed to Tata Motors, Pantnagar plant. The Tata Motors, Pantnagar plant is a green field project with the investment of 1000 crores & was planned to manufacture small commercial & passenger vehicles. It is spread over 953 acres of land where its vendors occupy 337 acres of land. The best thing about the plant was that this plant was made operational in record time of 11 months. We were received by Mr. Brijlal Ahuja (HR personnel), who first took us to beautiful garden in the plant which is a part of the 117 acres of greenery inside the plant. We got to know various HR policies & functions followed in Tata Motors from him like

• Employee Relation
• Engagement Cell
• Industrial Relation
• Time Office Management
• Learning & Development


          We also got to know about the fast track appraisal system (FTSS) of Tata Motors, where in anyone from Tata Motors, who has an experience of 2 yrs can sit for FTSS exam; those who clear this exam are straight away promoted to Division Manager Position. Plant designed capacity is 5 Lakhs vehicles per year. It has a single largest paint shop with 58 JPH capacities, weld shop with robots, machine shop with flexible machining centers & CNC machines, assembly lines with super market & just in time material feeding system with inter shop conveyors. This has eliminated the use of vehicles for material transportation within the plant. Hence a great reduction in the operation cost for the company.

          After learning HR policies adopted in Tata Motors, we went to the Welding shop. In this shop, chassis of the body is welded with the various parts like the underbody and struts and suspension etc. Various parts are welded using Spot welding technique. Ace zip and Magic Iris are handled and same assembly line is used for both. They follow ABC analysis method for maintaining the suitable inventory level with lead time of 4 hours. In this department, they follow a balanced score card for employees, where every detail about an employee’s performance is monitored. The vehicle from the Welding shop is sent to the paint shop where it is painted and then it is send to assembly shop where the entire vehicle is assembled on the assembly line. Then we moved to assembly shop. Here they follow the principle of TPM (Total Productive Maintenance) and SDT (Self Directed Teams); their focus is on Quality and Team Work.

           In this department the focus is on lean manufacturing and sole complete proprietorship whereby Tata Motors gets its competitive advantage. This department follows Just In Time inventory model with a variable lead time of 2 hours for the parts from vendor park to 1 month for parts which come from outside. Once the vehicle is ready it is send for testing on a dynamometer. Two main issues faced by Assembly line were Line Balancing & Managing people. At the last leg of Tata Motor visit, we were taken to the Learning & development Department. There we met Senior Manager, Employee Engagement of Tata Motor, Mr. Vineet Singh. He showed a small video on Tata Motors & then gave a presentation on Tata Motors. The overall hospitality on the part of Tata motors was excellent. After having lunch, we bid adieu to Tata Motors, Pantnagar plant.

Sikands Limited, Pantnagar
 

After experiencing the assembly line units in Bajaj Auto and Tata Motors it was time to go a step back in the supply chain and visit the Vendor’s side to understand :-
 

• How actually the manufacturing of the components takes place on the shop floor?

• Why do companies like Bajaj and Tata outsource their components to these vendors? 


• What advantages do they gain over producing the same at their own floor?

          We visited Sikands Ltd. after visiting Tata Motors plant. Sikands Limited is located in Integrated Industrial Estate (IIE) Pantnagar Rudrapur. This Pantnagar Manufacturing Unit deals in high tensile fasteners. Sikands Ltd. was established in 1964 & its corporate office is in Faridabad, Haryana. It manufactures and exports cold forged components, fasteners, bolts, screws, studs for 2- 3 wheelers auto components. We were greeted by the plant head, Mr. A.K. Singh, and his staff members on arriving at the plant. We were then taken to the shop floor where manufacturing of Bolts was taking place. We saw various machines like Lathes, Heat treatment setup comprising of heat treatment pit and conveyer belt based heating furnace. As a vendor, Sikands ltd. has to ensure that the product that they manufacture has to follow the standards that meet that of the companies that they are supplying to; for that they follow rigorous quality checks and ensures that the product manufactured adhere to the quality norms or else it would be rejected by the receiver. Quality checks are done by skilled labor force; they are also responsible for setting up of the machinery for production process. Their target is to produce the required quantity by their customers maintaining the quality of the product.

          The planning for production mainly depends upon the quantity asked by the customer and the maximum possible production limit for the plant. Only manual workforce was employed and no automation was visible on the shop floor. We saw the workers on the machine were semi-skilled and the quality of working standards and pay-structure followed by them didn’t match that of companies like Bajaj and Tata Motors. The main reason behind this approach is to produce the quality component at minimum cost possible. Employment issues faced by the vendors are completely of a different nature than in these companies and attrition rate is quite high so most of the times vendors take working force on contract basis. Hence, in this way, the companies outsource and can get the required quality of product with low cost with maintaining the high standards at their shop floor. The staff members were very cooperative and very patiently explained us the manufacturing processes and answered to our queries. We expressed our regards to the Plant head and the staff members and they showed a lot of interest in having a visit to the department if we had any further queries.


At last, after spending our two days at Bajaj Auto, G.B. Pantnagar University, Tata Motors & Sikands Ltd, & learning a lot of things there, we finally headed to DoMS.

DoMS Rocks !!!

Prepared By :-
Atul Sharma,

Ankit Kumar Agarwal,
Manav Kaushik,
Jamal Ahmed