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THIS IS WHAT I HAD WRITTEN TO BUSINESS TODAY

THIS IS WHAT I HAD WRITTEN TO BUSINESS TODAY

Dear Sir,

This refers to your “revealing” and “eye-opening” cover story: ” Money From Junk” (BT, August 2,2015).

As rightly observed in your Editorial, globally many “bargain hunters” have made fortunes by buying distressed assets for peanuts and selling them later at phenomenal rates. With the increasing tribe of ARCs (nearly 15 names listed on page 59) in India now, the future of such companies looks bright.

However, I feel the term “junk” used in the story, seems to be a misnomer. Plants, buildings, machinery, stocks and other assets often do have what is termed as “balance future life” and if sincere efforts are made for recovery, revival etc, I feel they can be put to good use for quite a few years, until they can be “milked” profitably.

The term “Vulture Funds”, seems to be an apt description akin to the behavior of vultures which openly feed on corpses of animals and human beings left to die. In fact, vultures are like scavengers which help get environment / economy get rid of rotten, fishy, smelly stuff.

Bankers on one hand are partly to be blamed for creating huge mass of NPAs by giving up recovery, rehabilitation, revival efforts which are difficult and time consuming compared to the ease of lending to meet new advances targets. In spite of umpteen tools like Credit Monitoring, Supervision, Health Classification, Compromises, OTS routes, CDR Mechanism, Suit-Filing, SARFAESI ACT 2002, DRTs and BIFR Cells, the net result  has so far resulted in only ballooning of  distressed assets and the monster of NPA has not been reigned in, as desired. It is high time a high powered committee of RBI, Bankers, Industry Experts etc is formed without any further delay to overhaul the system, formulate stringent policy guidelines, replace old laws with new ones in tune with the needs of the times and ensure a healthy banking system- the back-bone and nerve-centre of the Indian economy or else, be ready to face consequences like the recent Greek tragedy in near future!!

I enclose a few photographs on Vulture Funds which you may use as you deem fit to highlight the issue in case you publish this letter of mine. A picture is worth a thousand words, it is said!

J S Broca, New Delhi, 23rd JULY 2015

THIS IS WHAT HAS BEEN PUBLISHED IN THE LATEST ISSUE OF BT DATED AUG 19TH 2015 WITH COVER STORY ON INDIAN CEOs BEING OVERPAID:

A Bright Future Beckons ARCs

This refers to your cover story on asset reconstruction companies or ARCs (Money from Junk, August 2). Globally, many “bargain hunters” have made fortunes by buying distressed assets for peanuts and selling them later at phenomenal rates. With the growing tribe of ARCs in India, the future of such companies looks bright. However, I feel the term “junk” used in the story seems to be a misnomer. Plants, buildings, machinery, stocks and other assets often have what is termed as a “balance future life” and, if sincere efforts are made for recovery, I feel they can be put to good use for quite a few years until they can be “milked” profitably. Bankers are partly to be blamed for creating a huge mass of NPAs by giving up recovery, rehabilitation and revival efforts which are difficult and time-consuming, compared to the ease of lending to meet new advances targets. It is high time a high powered committee of the RBI, bankers, and industry experts is formed to overhaul the system, formulate stringent policy guidelines, and ensure a healthy banking system or else be ready to face the consequences like the recent Greek tragedy in the near future.

J.S. Broca, New Delhi

Image result for VULTURE FUNDS

Emerging Companies

Emerging Companies

The COVER STORY in the latest issue of BUSINESS TODAY dated July 19th 2015  is titled “Growth Warriors”.

It lists following 18 companies: 

Six categories Eighteen Stars

Category-I

1. Eicher Motors– makers of Royal Enfield Motor cycles.

2. Serum Institute of India–makers of vaccines.

3. Kwality Ltd–dairy segment.

Category-II

1. Avanti Feeds—makers of prawn and fish feed.

2. Kaveri Seeds—hybrid seeds.

3. PVR—Multiplexes.

Category-III

1. Astra Microwave Products—special Radar components.

2. Kamrajar Port—fossil fuels handling port in Tamil Nadu.

3. Seven Life Sciences—bio pharmaceuticals.

Category-IV

1. Adani Ports and Sez—multi-port operators.

2. IL&FS  Transport Network—infrastructure.

3. Godrej Agrovet—Agribusiness.

Category-V

1. GAIL Gas—gas distribution.

2. Raj West Power—electric power.

3. Adani Gas—gas distribution.

Category-VI

1. Ishedu Agrochem—castor oil and derivatives.

2. IL&FS Education & Technical Sevices—computer education and skilling.

3. Shilpi Cables—telecom cables.

 Here is what I have written to the Editor:

FASTEST GROWING EMERGING COMPANIES

Dear Sir,

This refers to your interesting special edition of your pains-taking survey on emerging companies. (“Growth Warriors” BT July 19, 2015).

All eighteen companies engaged in diverse areas of operations are expected to play a very important role in development of the Indian Economy now and in times to come. The list of fields they are engaged in, speaks volumes about their expertise in finding cutting-edge solutions to our country’s myriad problems, be it in life saving vaccines, hybrid high yielding seeds, radar components, biopharmaceuticals, or power and gas  distribution etc. The technocrats, engineers, scientists, agriculturists, entrepreneurs—the brains behind all the companies included in the coveted list, truly deserve special mention for their zeal, energy, drive and focused attention to their path- breaking endevours.

Kudos to the BT Team for this thought–provoking Collectors’ Issue which has highlighted the performance of these un-sung heroes and growth-warriors of our country.

Let us hope the present Government’s future policies give a boost to such companies to really herald innovation and experimentation to justify that truly “Achchey Din Aaney Waaley Hain”!!

Jai Ho India!!  

J S Broca New Delhi. 08.07.15