School of Management Studies, CUSAT

02/06/2020

RISE UP EVERY TIME YOU FALL !

A qualified and experienced youngster was struggling for a job and requested my help for getting one/in returning to India. I advised him not to accept defeat, for it may become a habit in no time. He should rise up and face the challenge.He can draw inspiration from our PM who was a chaiwala or former President Kalamji.

Inspite of Corona, he chose a night shift work which included:
- Sorting of parcels (large and small).
- Offloading, sorting into pallets and in-housing of goods.
- Order fulfillment of goods in warehouse.
- Receiving, checking, replenishing stocks
- Picking, packing and carrying of goods.
-Other duties as assigned by supervisor.

Blows that don't break your back, will only make you stronger.There is dignity in every work you do.The problem is not the job content, but in the attitude.

You will be an inspiration to other youngsters too. Make bones..Your family is proud of you.God bless you, my son.

31/05/2020

TEAM WORK !

A Businessman gets stranded on a lonely highway in the US.
The tyres of his car get stuck badly in a mud pool.

He looks around for help and finally finds an old farmer.
The businessman goes to him asking for help to get his car out of the mud.

Farmer gauges the situation, and agrees to help him and says, let us take the help of Warwick, an old bull at the farm.

The farmer ties the bull to the car and start shouting loudly, "FRED, PULL!... JACK, PULL!... JOHN, PULL... WARWICK, PULL..."

As the farmer keeps shouting these words, the bull Warwick gets the car out of the pool of mud.

The Businessman is relieved but has a doubt in his mind.
He thanks the farmer and asks him, "You said the bull’s name was Warwick, and he was alone, then who were Fred, Jack & John?"

The Farmer answered, "See, Warwick is old and is also blind. He does not know he is pulling this car alone. The moment he hears the other names, he thinks he is in a team, and he gives his best".

So is the case with all of us.
The very thought that there are others in this same situation as us, gives us a great deal of comfort, hope, confidence and enthuses us to put our heart and soul into any task that we undertake.

It's not without reason that the very word "TEAM"is said to stand for "Together Everyone Achieves More".

Let's work as a team to overcome the COVID crisis ...

25/05/2020

CRITICAL MASS FOR CRITICAL TIMES !

Any bussiness venture has to reach critical mass to carry on and succeed.The Critical Mass of the business venture -Micro, Small, Medium or Large, already existing or new, will be tested after the COVID 19 shutdown.

Critical mass refers to the size a company needs to reach in order to efficiently and competitively participate in the market. A company's critical mass is determined by the size of its staff, resources, revenues and market share. It is the point at which a company becomes profitable.
It's wise to do proper forecasting, after thoroughly studying the current busines environment, technology, marketing, manpower and financial requirements with respect to the venture. Hard decisions have to be made whether to continue the business or to shelve it. During Covid times, when businesses in India and the world in general are facing a recession, no business person can continue his venture pretending nothing has happened. Sea changes wil happen in business models, collaborations, joint ventures, substitutions etc.
Always see if your business has the critical mass to attain profitability. If not modify, minify, magnify by cutting down those areas which are not sustainable, change the business model through collaboration with bigger, better units. Also if you have the technology and resources expand business as if there is no tomorrow.
Never make a half hearted attempt to continue/ start a venture without passion, tenacity and a hunger to succeed in an enterprise.

21/05/2020

NRIs & ENTREPRENURS CAN BE SUPPORTED WITH UNUSED FIXED ASSETS !

Every state has a long list of business enterprises taken over by State Financial Corporation, State Industrial Development Corporation, Public and Private Sector scheduled and non scheduled Banks,etc for non payment of Term Loan, Working Capital Loan or both.

Financial Institutions should hand over Industrial land they took over with building and/or machinery,which are lying vacant for over 10 or more years, to employees/new entrepreneurs/ NRIs on long term lease/sale.

The financial institutions try to auction these assets taken over and often get only a minuscule portion of the loan amount, interest and penal interest. There would be other liabilities to the Electricity Board, Water Authority, Employees salary, creditors, etc.

Why no new entrepreneurs come forward to take over these units is because the huge burden of the liabilities of the old unit far outweighs starting a new one.There will be also interference from the old employees, creditors, etc.

l experienced a similar issue in 1985 when I resigned my job as an Export Manager at the age of 26, and landed in Ernakulam. I did a thorough study of the units available with KFC and KSIDC.and short listed, a brief case making unit of KFC and a Camphor making project of KSIDC. I was able to convince the CMD of KFC Shri Somasundaram IAS that if the unit could be given to me, a qualified and experienced business person, for a small equity, there is a possibility of running the closed down unit (for over 10 years) at Kalamassery industrial estate. I was very thrilled with the prospect of becoming an entrepreneur, I didn't sleep properly for a week. I went into the nuances of cleaning the land building and machines etc. In no time I was surrounded by KSEB for payment of arrears and interest, ex employees for unpaid salaries, etc.I ran away from Kalmassery as fast as I could, and whenever I pass Kalamassery, I always feel a flash of the past.

My request to the State Governments and Financial institutions is to hand over the rusting machinery, dilapidated buildings and ill maintained land to young new entrepreneurs with a dream project, even if they are able to mobilize only 10 percent of the value of assets and need hand holding during the gestation period ( if they so desire) and to support their working capital needs.KSEB, KWA, etc arrears should be written off.

Just like our State Government is trying to maximize the agricultural output, become self sufficient and increase our GSDP, we should think out of the box to have business opportunities for NRIs returning from abroad, employees who lost their jobs and for the vibrant youth.

18/05/2020

INDIA SHOULD FOCUS ON EQUITY THAN DEBT FOR FUTURE BUSINESS !

India’s top listed companies owe nearly Rs 30 trillion to their lenders at the end of FY19, up by around Rs 6 trillion over the last three years.

Numbers also suggest deterioration in companies’ debt servicing capacity. The interest coverage ratio in the private sector declined to 2.1 in FY19, from 2.3 a year ago, while it was down to 6.1 in the public.

Companies’ combined borrowings were up 13.2 per cent year-on-year (YoY) in FY19, growing at the fastest pace in at least the last five years. In comparison, their net worth or shareholders’ equity was up 11.3 per cent, down from 14 per cent growth a year ago.

Though the accepted norm is a debt equity ratio of 2:1, it varries from industry to industry and from business to business. Recently Reliance started on a path of zero debt of it telecom petroleum business, to get better leverage post COVD times and to become a bigger better global player.

Though I am glad that 20 L+ Crores is being being pumped into the economy under various heads, I am sad that the debts of the state, industries and business is on the raise. The states and business/agri will be further burdened by servicing the debt and will find less funds in the future for development or increasing capacity.

The equity culture of the country should be improved. Even with over 3000 management institutes in the country only a very few students start new business.Students should be taught in school/ college nuances of equity, debt and related matters. You cannot expect students to become entrepreneurs without giving an exposure to sources of fund, its cost in comparison to own funds. They can start investing small amounts as equity and in no time a sizable fund will be at their disposal for higher education, business, marriage,etc (than depending solely on parents)

They will be skilled to read financial statements, business analytics and above all a taste ownership of business and its rewards and pains.They will also understand the power of being an employer than an employee. The probability of at least 25 percent turns to real time entrepreneurs is also very high. Our Hon.PM has a great vision to take our country forward. Hope improving equity culture will be his next mantra for 'Make in India'.

10/05/2020

INDIA NEEDS TO IMPROVE SUPPLY CHAIN MANAGEMENT SKILLS.

The level of expertise and leadership required in Supply Chain will become so much more sophisticated that more and more companies will outsource at least some portion of their Supply Chain operations, during/post COVID times, for sure.

Supply Chain jobs include planning, strategic procurement, logistics management, fork truck operation, dispatching, scheduling, inventory control, assembly, processing, maintenance, planning, buying, sourcing, packaging, quality control, inventory management, space planning, supplier management, capacity management, lean, process design and transformation, I/T systems development and management, repair and recycling, expense management and financial controls, resource planning, analytics, cash flow management, training and education, and much more.

Supply Chain spans virtually every business, industry and agriculture.Supply Chain offers the opportunity to learn to work with people not only in your own company but in other companies,with people from different cultures and in different countries all around the world. The opportunities for interpersonal skills development and networking are enormous.

With advancements in Digital Technology, Supply Chain is on the verge of significant changes for decades to come.Technologies such as the Internet of Things, Artificial Intelligence, Blockchain, Predictive Analytics, Autonomous Vehicles and Drones, and more, all provide the foundational elements to make revolutionary changes in Supply Chain.Take note that the limitations of current system will give way to a data driven future where artificial intelligence based systems smoothly manage the flow of goods and services.

To enhance Supply Chain Management skills, India (and my state, Kerela) should carefully study the requirements for the future, collaborate with countries/ companies that have made tremendous strides in this direction, develop training and systems suitable for a 'Make in India', 'Import more to export more' and 'Riccardo's theory of Còmparitive Advantage'.

06/05/2020

PROMOTING INDUSTRIES IN KERALA !

The State Agriculture Minister is doing a good job. There seems to be a quantum jump in agriculture production and new targets are fixed to make the state self sufficient in the near future. So does the Health Minister, in terms of health infra, if we see the daily COVID stastistics of the state in comparison with other states in the country and outside. Foreign remittance are expected to shrink and the main focus should be on Industries and the Service Sector which can generate substantial revenue and employment for the State.

in order to revitalize the economy and to give a fillip to the industrial growth in the State, the Government of Kerala has established various industrial promotion agencies.
Besides the Government Departments and the Government Holding Companies engaged in the development of the different categories in industries, there are specialized Corporations sponsored by the State Government, assigned with the task of industrial promotion, especially in the private and joint sectors.
The main agencies include:
1. Kerala State Financial Corporation (KFC)
2. Kerala State Industrial Development Corporation (KSIDC)
3. Kerala Industrial and Technical Consultancy Organization (KITCO)
4. Kerala Small Industries Development Corporation (SIDCO)
5. Kerala State Industrial Products Trading Corporation Limited (KSIPTC)
6. Centre for Management Development (CMD)
7. Kerala State Export Trade Development Council (KSETDC or KEREXIL)
8. Electronics Technology Parks – Kerala (TECHNOPARK)
9. Kerala Bureau of Industrial Promotion (K-BIP)
10. Kerala Industrial Infrastructure Development Corporation (KINFRA)
11. Kerala Information Technology Services Society (Kerala IT Mission)
12. Kerala Academy for Skills Excellence (KASE)
In addition to the above, there are some institutions which have their base
at the Central Level. They too act as industrial promotion agencies in Kerala.
These agencies are:
1. Small Industries Development Bank of India (SIDBI) and
2. Software Technology Parks of India, Thiruvananthapuram (STPI-T)
The State Department of Industries and Information Technology and the
various Industrial Promotion Agencies have been vested with the power to initiate and facilitate the smooth start-up of business ventures. The agencies also offer comprehensive consultancy and support services to the prospective investors.

A report in a leading newspaper informed that there was the disappointment at the functioning of some of government agencies like KFC, KINFRA, KSIDC,etc especially from representatives of micro small and medium enterprises. They felt that these agencies had failed to provide two ingredients crucial for the growth of industry in the state: affordable finance and infrastructure.

Affordable finance has been a longstanding demand. According to an Kerala Enterprise Development Report prepared by the Institute of Small Enterprises and Development, 92.03 per cent of the MSMEs in the state had not taken any loans from any government agencies like KFC or KSIDC. Among those that have availed loans, 73.89 per cent depended on banks for loans while the balance was accounted for by cooperatives (10.67 per cent), private money lenders (5.75 per cent) and others (9.69 per cent).

One of the reasons for the reluctance to secure finance from KFC was the high rate of interest (14.50 per cent). This rate was in fact, the highest among 11 State financial corporations (SFCs) in the country.

Besides low-cost finance, creation of new infrastructure and strengthening of existing one are the other two factors necessary for the growth of industry. KINFRA, KSIDC and SIDCO have been developing industrial parks, townships, industrial growth centres and industrial estates. However, they seem to go about their task without proper planning.

Now there is going to be a huge influx of Malayales from other state and from abroad. It's time for the CM to brief these Industrial Promotion Agencies in the state of their new role, of combining the talent of the NRIs and Indians returning to the State with the resources and infrastructure available or that should be developed quickly. They are going to be here for a long long stay. Hence no 'band aid' solution please.
Last but not the least, by the time the guest workers return to work in these industries after going home, let there be proper shelter for them (the assignment could be taken up by large social organizations like Rotary Lions,etc).

02/04/2020

CMs DISTRESS RELIEF FUND

Dear friends,

It is often said, great oceans are formed from tiny drops of water.Examples of sacrifices by the Indians during the freedom movement, floods and famine are well known. Time has come for another such sacrifice by each and every one of you- poor or rich, young or old, male or female, as an individual or group, to tide over the requirement of unlimited fund for our safety and security from the COVID19.

PLEASE DONATE GENEROUSLY TO THE KERALA CMs DISTRESS RELIEF FUND on line using the following link, and download reciept for tax relief if required:

https://donation.cmdrf.kerala.gov.in

Thank you,

Dr.Ramesh Babu
Mob: 98460 46408

Chief Minister’s Distress Relief Fund (CMDRF) is an emergency assistance release mechanism granting immediate relief to families and individuals distressed by calamity, loss of life due to accidents and chronic diseases.

27/03/2020

SMS '80 FOUNDATION sponsors an Accident Crash Cart to Govt. General Hospital,Ekm, on 14th March, 2020.

Though we decided to give special type of cots at the last executive meeting, our discussion with the Superintendent of Govt. Gen Hospital, Ekm revealed that they require an accident Trauma Cart and a Motorised Operating Table. Our hunt for an item we are not used to did take some time to shortlist a competitive vendor. We were reluctant to give advance for obvious reasons. Finally the stalemate was resolved and we exchanged product against cheque of ICICI Bank. Tom and KPP put in a lot of their time and effort in this good work. Thank you all for your blessing.
We are expecting the delivery of Motorised Operating Table asap.

02/10/2018

FOUNDING THE FOUNDATION !

22/09/2018

AGM EXPERTISE SMS80' FOUNDATION !

An AGM today which took several landmark decisions...

29/08/2018

SMS'80 FOUNDATION HANDS OVER CMDRF CHEQUE TO ERANAKULAM COLLECTOR TODAY!
A cheque for Rs One Lakh collected from alumni of SMS CUSAT within hardly two weeks time from 16.8.2018 is handed over today afternoon to the Ernakulam District Collector, Shri K.Mohammed Y Safirulla IAS, Thanks to your contributions once again.