CORPORATE CO
OPERATIVE -A NEW KIND
66 years have passed and Indian economy passed
through lots of turbulence in the past. What was once a control economy changed
to open economy at present. Thanks to Dr Manmohan Singh the then FM in 1991 and
the great PM P V Narsimha Rao and their path breaking law of liberalization of
Indian economy. What was once crumbled and stagnated business atmosphere has
changed a lot with global exposure at present .There are at least 40 Indian
Companies who are in fortune 500 lists. Global exposure has created huge
employment in Narayan Murthy led IT sectors since 1991. There are 1000 IT
companies working at present with more than 100 billion dollar business
annually. India is now leader in drug --IT--Oil refinery--Milk - Steel business.
Continuous M&A activities going on to penetrate not only Indian market but
almost entire world market.
After so many achievement in so many sectors
India still lagging in creating more employment .India need 5.3 cr employment
by 2020. It seems Companies with similar products are regularly growing with
more and more turn over in terms of value and quality as well but while
analyzing the situation we find profitability squeezing year on year basis
.Instead of finding the real reason Companies are resorting to M&A(Merger
& Accusation) activity regularly to penetrate and monopolize the
market. Big Companies taking up the small companies and even Big companies also
merging with another big Companies. This phenomenon of M&A activities without
any clear intention and analysis creating confusion to management as well as
workers. Last 3 years if we analyse further we can find even with M&A
activity Companies profitability declining. Reasons are many -reasons are diverse
-reasons are what we sometimes call vested interest also or some larger
interest might be. I bet no one can tell why M& A in actuality and even
Companies doing M&A is not clear of intention. Management of the Companies without
finding any real reason landed up to mirage situation in desert and trying and
finding no solution to profitability on year on year basis becoming sick
slowly and gradually rendering huge unemployment situation with in the merged
situation . So something has to be done --some logical conclusion has to be
done. We cannot allow a stable company suddenly going to sick but still we
watch in disbelieve that lots of great Companies in the past became sick. Spice
jet --King fisher Airlines like Companies are the glaring example. It may be
mismanagement -It may be something others but Companies are getting sick
.Sahara Companies are another example as how large numbers of investors
employee got cheated by mismanagement of Sahara group of Companies. So there is
no guarantee of profitability even after M&A of other companies.
So here my discussion or analysis is solely to
find some solution which may change the business situation in India rapidly to
some logical end. Instead of M&A,I believe same group of companies can work
on Corporate Cooperative model with a new centralized marketing body which will
create more employment. Someone may point out the Management issue may get
diluted but Country like India with 1.2 billion people need co operative mode
to provide more employment. See the AMUL Model and its success. So why not same
group of companies making similar products from CORPORATE COOPERATIVE in
terms of Marketing the similar products. Let the sells take care by separate
companies. In to-days competitive world same group of companies fighting each
other for market share which effect their productions as well as quality also
and profitability also in larger terms. I mean same group of companies with
similar products mix only. We need to look a new generation Indianized system
of marketing as looking in the past it happened that our Indian companies never
develop their own marketing base and strategy or theory instead we borrowed
Peter Duckker of western countries where socio economic culture is far
different than Indian socio economic culture This kind of situation established
as India is now flourished with so many MBA colleges with so called world class
IIMs but I believe no one tries Indianized marketing system so far .We need a
farmer from Rural India should give lecture to a IIM student with his Deshi
dress and Raw words about marketing a product because India live on Rural. We
are increasingly depending on ultra urbanization for development but never
tried Rural as I believe Rural India is truly a gold mine and need to dug up .70
% people still live in Rural India who might have never heard of Indian
economic liberalization -never heard of India is now truly a developed country
-Never know how much world developed countries have interest in India. We need
to develop more human in Rural India and we need to focus on that and making
planning process truly on Rural basis. And then only India will develop further
with more and more human development which in turn will create more products --more
market --more employment. And captain of the Business world must now think
differently and focus on Rural India with similar Agro based Industries on
truly world class CORPORATE COOPERATIVE MODEL on AMUL line of action.
[Asim
Boral]
0 Comments
