By M H Ahssan
The stage is set for the multi-crore Satyam fraud case to go to trial with the Central Bureau of Investigation (CBI) filing its charge sheet against nine accused including the company’s former chairman B Ramalinga Raju and his two brothers Rama Raju and Suryanarayana Raju in the local CBI court on Tuesday.
The other accused are former CFO Vadlamani Srinivas, PW auditors S Gopalakrishnan and Talluri Srinivas, Satyam vice president G Ramakrishna, senior finance manager D Venkatapathi Raju, and assistance finance manager Ch Srisailam.
All the nine accused have been charged with offences of criminal conspiracy, cheating, impersonation, forgery of valuable security, forgery for the purpose of cheating, showing forged documents as genuine, falsification of accounts and causing disappearance of evidence. The sections it invoked forthis are 120-B read with 420, 419,467, 468, 471, 477-A and 201 of IPC. If proven, the charge under section 467 alone would impose life imprisonment on the accused while the punishment for remaining charges may vary between two to seven years in jail.
The charge sheet did not touch the area of diversion of funds by the Raju brothers or anyone else. “We could not come to any conclusion so far on this aspect. If we arrive at a definite conclusion in further investigations, we will file a supplementary charge sheet,” CBI DIG V V Lakshmi Narayana told HNN.
Interestingly, the CBI left out D Gopalakrishnam Raju, general manager of SRSR Services Ltd, who had also been arrested by the CID in connection with the Satyam case, on the grounds that no incriminating evidence was found on him. Sources said he is likely to turn an approver at a later stage.
Addressing the media after submitting the charge sheet, DIG Lakshmi Narayana said as of now, this is the final charge sheet. “However, investigation by the agency is still continuing and if there is any new evidence, we would file the same in the form of an additional affidavit under 173 (8) of the CrPC in the coming days,” the DIG said.
The filing of the charge sheet would not offer any immediate relief to the accused as the prosecution sources made it clear that the actual trial would commence after some time. “There are several stages still left and we will continue to oppose the bail pleas of the accused,” the sources said.
The CBI, which took over the case from the CID on February 20, 40 days after the scam broke out, is under a legal obligation to file the charge sheet before the expiry of the statutory 90 days time limit. After taking over the case, the CBI filed the charge sheet in 45 days.
The agency brought all the documents pertaining to the Satyam case in a closed van to the CBI court. This included a 300-page charge sheet, citation of 433 witnesses and 1,532 additional documents spread over 65,000 pages, weighing 22 tonnes in all.
“We have covered areas like forgery, fictitious invoices and the loans arranged through 327 frontal companies floated by the accused and collected incriminating evidence against the accused,” Lakshmi Narayana said at the media briefing. In its charge sheet, the CBI has reportedly mentioned that the total value of the scam far exceeded the much publicised figure of Rs 7,000 crore.
Meanwhile, the court on Tuesday allowed the CBI sleuths to collect the specimen signatures and the handwritings of the accused before a magistrate before April 9.
Wednesday, April 08, 2009
Hyderabad now a hotspot for infra investments
By M H Ahssan
Southern metros led by Bangalore, Hyderabad and Chennai have become the most favoured destinations for attracting infrastructure investments from corporates ahead of Mumbai, Delhi and Kolkata, an Assocham study said.
The report “Indian Metros: pulling infrastructure investment” pointed out that the three southern capitals accounted for 70% of total private investments in infrastructure projects among six metros in India. Kolkata, Mumbai and Delhi accounted for the remaining 30%.
As per the Assocham study, the private sector has bet Rs 33,161 crore on the southern metros compared to Rs 14,240 crore in other tier-I cities.
The southern metropolitan cities are less urbanized with a combined urban population of about 16 million compared to Mumbai (18 million), Delhi (18.7 million) and Kolkata (15 million), the Assocham study said.
Assocham president Sajjan Jindal said: “Southern cities are attracting private attention towards infrastructure projects primarily due to better state policies, availability of talent due to engineering and business institutes, high literacy rates and rising per capita income.”
The study said that even when the real estate sector across the country is facing problems, investments in realty projects have acquired highest share in overall infrastructure investments in the southern tier I cities.
Around 12 projects were announced by the private sector during last six months amounting to Rs 12,990 crore.
Bangalore had a maximum of six realty projects while Hyderabad and Chennai had five and one respectively.
The second highest investments are lined up for SEZs. As much as Rs 12,150 crore would be spent in developing five SEZs by the corporate sector in southern metropolitan cities.
Southern metros led by Bangalore, Hyderabad and Chennai have become the most favoured destinations for attracting infrastructure investments from corporates ahead of Mumbai, Delhi and Kolkata, an Assocham study said.
The report “Indian Metros: pulling infrastructure investment” pointed out that the three southern capitals accounted for 70% of total private investments in infrastructure projects among six metros in India. Kolkata, Mumbai and Delhi accounted for the remaining 30%.
As per the Assocham study, the private sector has bet Rs 33,161 crore on the southern metros compared to Rs 14,240 crore in other tier-I cities.
The southern metropolitan cities are less urbanized with a combined urban population of about 16 million compared to Mumbai (18 million), Delhi (18.7 million) and Kolkata (15 million), the Assocham study said.
Assocham president Sajjan Jindal said: “Southern cities are attracting private attention towards infrastructure projects primarily due to better state policies, availability of talent due to engineering and business institutes, high literacy rates and rising per capita income.”
The study said that even when the real estate sector across the country is facing problems, investments in realty projects have acquired highest share in overall infrastructure investments in the southern tier I cities.
Around 12 projects were announced by the private sector during last six months amounting to Rs 12,990 crore.
Bangalore had a maximum of six realty projects while Hyderabad and Chennai had five and one respectively.
The second highest investments are lined up for SEZs. As much as Rs 12,150 crore would be spent in developing five SEZs by the corporate sector in southern metropolitan cities.
Mixed bag of voters a challenge in Uppal
By M H Ahssan
Carved out of the Medchal assembly segment in Ranga Reddy district, the new Uppal assembly constituency poses a unique challenge to electoral candidates. With a mix of people from Orissa, West Bengal, UP, Bihar and Kerala residing here, the area is called ‘mini India’ by local leaders.
Candidates of the Congress, Telangana Rashtra Samithi (TRS) and Bharatiya Janata Party (BJP) are struggling to please this vast variety of voters who are spread out in Cherlapally, Ramanthapur, Nacharam, Mallapur, EC Nagar and Habsiguda areas, where a large number of industries are located.
While Congress candidate Bandari Raji Reddy is campaigning with a convoy of half dozen vehicles and hundreds of party workers in colonies, the convoy of Mahakutami candidate TRS nominee M Yadagiri Reddy has both Telugu Desam and TRS party flags and is accompanied by a brass band. BJP candidate NVSS Prabhakar is also appealing for votes in various localities.
The Congress candidate is chanting the development mantra. “Give another chance to Congress to develop the constituency further,” he told voters. His TRS rival uses the ‘Telangana’ slogan, but also seeks votes for all round development of the segment. The constituency has four Industrial Development Areas (IDA), including Nacharam, Uppal, Cherlapally and Kushaiguda, with workers and middle-level officers in factories here comprising a sizable chunk of voters.
Land acquisition from the farmers is a serious issue in this election. The erstwhile Hyderabad Urban Development Authority (Huda) had issued a notification to acquire over 800 acres of land on the bank of the Musi river for real estate development under ‘Save Musi’ project. Most of the farmers affected are paragrass growers belonging to Uppal Bhagat and Ramanthapur Bhagat areas. They are up in arms against their land being taken forcibly. A proposal to give the farmers a share in the project by involving developers is pending with the government.
“The state government issued 800 GOs just before the election. Why did it not include a GO which helps the farmers?” demands BJP candidate N V S S Prabhakar. Others promise that either the farmers would be given a good deal or the land acquisition notification would be scrapped.
Here, residents also complain of drinking water problems and bad roads. “The Nacharam to Chilkanagar road got damaged a year ago. Motorists have a tough time on this three km stretch. Despite several requests to municipal authorities, it was not repaired as the area falls in IDA,” K Brahmanandam, a resident of Hema Nagar said.
Residents of a few colonies like Annapurna colony said their area was neglected as it was in Medchal constituency which was represented by T Devender Goud, once in TDP but now in Prajarajyam Party.
Another resident B Mrutyunjayam complains about how the opening of several wine shops in Hema Nagar colony has made the area unsafe for women.
However, Congress candidate Raji Reddy prefers to list out the development works he had implemented in Uppal and Kapra municipal circles. “As municipal chairman of Kapra I took up works like drinking water to the colonies, laying roads and providing other civic amenities,” Raji Reddy said. But his opponents insist that he has not been in active politics for the past 15 years as he was chairman of Kapra from 1987 to 1992. Besides, his age does not permit him to strive hard, they say. He defends himself saying, “Candidates of other parties do not even know the boundaries of constituency. I know each and every issue here, which is a big advantage.”
TRS candidate Yadagiri Reddy is banking on TDP’s strength in this area, calculating that since the erstwhile Uppal and Kapra municipalities had a TDP man for chairman, the TDP vote bank would help him.
The BJP candidate is also raising the issue of power cuts, that affects industrialists in this constituency. “I will see that the Gujarat model will be adopted in the state so that there will no power cut to industries. Apart from this 30,000 houses will be built for the poor in 100 days in my constituency,” Prabhakar promised.
PRP candidate A Narender is conducting his campaign in the constituency highlighting issues like rations for Rs 100, employment and other local problems.
FACT SHEET:
Total Voters | 3,28,499
Female | 1,54,127
Male | 1,74,372
Areas in the constituency: Uppal, Habsiguda, Ramanthapur, Nacharam, Mallapur, AS Rao Nagar, Kushaiguda, Chilkanagar, HMT Nagar, ECIL, Annapurna Colony, Raghavendra Nagar, SBH colony, Bhavani Nagar, Beerappa Gadda and other colonies.
Carved out of the Medchal assembly segment in Ranga Reddy district, the new Uppal assembly constituency poses a unique challenge to electoral candidates. With a mix of people from Orissa, West Bengal, UP, Bihar and Kerala residing here, the area is called ‘mini India’ by local leaders.
Candidates of the Congress, Telangana Rashtra Samithi (TRS) and Bharatiya Janata Party (BJP) are struggling to please this vast variety of voters who are spread out in Cherlapally, Ramanthapur, Nacharam, Mallapur, EC Nagar and Habsiguda areas, where a large number of industries are located.
While Congress candidate Bandari Raji Reddy is campaigning with a convoy of half dozen vehicles and hundreds of party workers in colonies, the convoy of Mahakutami candidate TRS nominee M Yadagiri Reddy has both Telugu Desam and TRS party flags and is accompanied by a brass band. BJP candidate NVSS Prabhakar is also appealing for votes in various localities.
The Congress candidate is chanting the development mantra. “Give another chance to Congress to develop the constituency further,” he told voters. His TRS rival uses the ‘Telangana’ slogan, but also seeks votes for all round development of the segment. The constituency has four Industrial Development Areas (IDA), including Nacharam, Uppal, Cherlapally and Kushaiguda, with workers and middle-level officers in factories here comprising a sizable chunk of voters.
Land acquisition from the farmers is a serious issue in this election. The erstwhile Hyderabad Urban Development Authority (Huda) had issued a notification to acquire over 800 acres of land on the bank of the Musi river for real estate development under ‘Save Musi’ project. Most of the farmers affected are paragrass growers belonging to Uppal Bhagat and Ramanthapur Bhagat areas. They are up in arms against their land being taken forcibly. A proposal to give the farmers a share in the project by involving developers is pending with the government.
“The state government issued 800 GOs just before the election. Why did it not include a GO which helps the farmers?” demands BJP candidate N V S S Prabhakar. Others promise that either the farmers would be given a good deal or the land acquisition notification would be scrapped.
Here, residents also complain of drinking water problems and bad roads. “The Nacharam to Chilkanagar road got damaged a year ago. Motorists have a tough time on this three km stretch. Despite several requests to municipal authorities, it was not repaired as the area falls in IDA,” K Brahmanandam, a resident of Hema Nagar said.
Residents of a few colonies like Annapurna colony said their area was neglected as it was in Medchal constituency which was represented by T Devender Goud, once in TDP but now in Prajarajyam Party.
Another resident B Mrutyunjayam complains about how the opening of several wine shops in Hema Nagar colony has made the area unsafe for women.
However, Congress candidate Raji Reddy prefers to list out the development works he had implemented in Uppal and Kapra municipal circles. “As municipal chairman of Kapra I took up works like drinking water to the colonies, laying roads and providing other civic amenities,” Raji Reddy said. But his opponents insist that he has not been in active politics for the past 15 years as he was chairman of Kapra from 1987 to 1992. Besides, his age does not permit him to strive hard, they say. He defends himself saying, “Candidates of other parties do not even know the boundaries of constituency. I know each and every issue here, which is a big advantage.”
TRS candidate Yadagiri Reddy is banking on TDP’s strength in this area, calculating that since the erstwhile Uppal and Kapra municipalities had a TDP man for chairman, the TDP vote bank would help him.
The BJP candidate is also raising the issue of power cuts, that affects industrialists in this constituency. “I will see that the Gujarat model will be adopted in the state so that there will no power cut to industries. Apart from this 30,000 houses will be built for the poor in 100 days in my constituency,” Prabhakar promised.
PRP candidate A Narender is conducting his campaign in the constituency highlighting issues like rations for Rs 100, employment and other local problems.
FACT SHEET:
Total Voters | 3,28,499
Female | 1,54,127
Male | 1,74,372
Areas in the constituency: Uppal, Habsiguda, Ramanthapur, Nacharam, Mallapur, AS Rao Nagar, Kushaiguda, Chilkanagar, HMT Nagar, ECIL, Annapurna Colony, Raghavendra Nagar, SBH colony, Bhavani Nagar, Beerappa Gadda and other colonies.
Monday, April 06, 2009
Is ignorance a bliss?
By Samiya Anwar
A millionaire or beggar, a kid or an adult everyone has same desire. What is it? All people crave for similar thing. What is that common in every person? Undoubtedly it is happiness. It is bliss, harmony or joy. We all want to be happy. Isn’t? Happiness is not something anyone else can give us... or take away from us. Happiness is what we make of our lives... or we long for it. Whatever our circumstances or state of affairs is we can create a blissful life... or dejected one. There are two options. Two choices in life and it are up to us.
Sometimes it is better to be naïve and have fewer details of few things. For instance today’s children, have so many sources of attaining information. It is not just in the library. The web provides bundle of information to everyone. A simple access to internet gives you the knowledge of every good and bad. Though knowledge is power, it is not so in the present day. Too much of knowledge can be evil and disastrous. Parents have insecurity issues with kids who are overwhelmed with too much of information holding in heads. Children are able to point out their parent’s mistake. Now a day’s children do not act or behave like children. It is disheartening because children know too much. When you are too aware of the flaws in life, living loses its idealistic thrill. Here knowledge is unpleasant.
The elders and oldies are happier to be in their ignorance. According to them ignorance is innocence. They are aware that world is globalizing and changing. But they keep telling the kids you’re too young to do this and that. However children don’t listen and have pain in the future. Like underage drinking, smoking, drugs, etc all the bad habits they develop imitating others. What you see is also knowledge. Sometimes it is good not to be informed of few things before age and time. Knowledge is not always prevailing it can be off-putting and scary.
Coping with different emotions is part of everyone's life, and we all feel happy and sad at different times at different stages. When I was a child I always wanted to grow looking after the joy of adulthood to others. I thought grown ups are happier and I wish to be one among them. I was hungry for maturity. But the situations I had were different than others. After attaining puberty I found childhood was better than these years. The start of adulthood had actually shut the door of innocence and a world full of pain and suffering was introduced to me. I was not ready to accept the real world. So I thought it is better to ignore some stuff of life. I felt happy that way. I found a kind of bliss in being ignorant
Once I heard that to acquire true happiness, we need to be open to new things, and not close our mind and clutch onto ignorance. But the poor and sloppy are happier than rich because they are not awaken to the true side of the world which is nothing but brutal. What we want is satisfaction from life. If it is achieved in being uneducated and uninformed it is subtle.
In the Tollywood movie Brindhawan Colony, the hero in the movie knows that the heroine is dead but he still comes to the same place after death and talk to her spirit. He continues to be in fancy of love. He is a willful ignorant. But he is happy this way. I think when our expectations of life don’t meet; we will hopefully get the same comforts of the person in fantasy-land. The same was shown in the form of love story in the movie
We all deserve a happy life. There is no wrong in finding the bliss being unaware of particular things in life. If you lie to others, you’re a liar. If lie yourself you’re still the same- a liar. It is something very tricky or calls it philosophical. The joy I feel in comforting myself is ignoring other people’s opinion and be my own. If it is a lie, Yes, I am a liar. What matters to me does not matter to the universe. If it is illusion, then yes I am illusionist. We are no one to bump into the lives of others who are happy. Is not I true? Do we need to drag ourselves back to reality of the real world, where in truth we may not be so happy?
In a short story “The doctor’s words” by R.K Narayan a doctor goes to treat an old friend who is bedridden and suffering ill. The conditional state of the friend is so bad that he can die any moment. Firstly doctor asks his friend to make his will ready. The wife of the friend threatens but the doctor consoles both that he will be fine by next morning and he wants his pal to be done with the important work. The doctor does every possible treatment and leaves the house telling him that he will see him other day. Doctor knows that he is lying and nothing can save his friend, it’s too late. He keeps the man and his wife in ignorance and also worried himself whole night. But when the doctor arrives in the morning, he is startled to see his friend sitting absolutely fine. God knows how the man under the mouth of dead is back or the doctors consoling words or the magic; the man is saved like a castle in the sky.
If ignorance protects us from pain then it is absolutely ok. When you are ignorant, you don't realize that there is wrong in the world. When you don’t want to compromise, you stay in your beliefs blindly. It is like staying in dark but still lightening your world with the invisible light of ignorance or pain. The brain doesn’t work when you lock the door by calling yourself ignorant.
Yet an ignorant person may invent a happier world to live in than that of the world they actually do live in. Ignorance is bliss indeed, after all anything for happiness. Hurray!
A millionaire or beggar, a kid or an adult everyone has same desire. What is it? All people crave for similar thing. What is that common in every person? Undoubtedly it is happiness. It is bliss, harmony or joy. We all want to be happy. Isn’t? Happiness is not something anyone else can give us... or take away from us. Happiness is what we make of our lives... or we long for it. Whatever our circumstances or state of affairs is we can create a blissful life... or dejected one. There are two options. Two choices in life and it are up to us.
Sometimes it is better to be naïve and have fewer details of few things. For instance today’s children, have so many sources of attaining information. It is not just in the library. The web provides bundle of information to everyone. A simple access to internet gives you the knowledge of every good and bad. Though knowledge is power, it is not so in the present day. Too much of knowledge can be evil and disastrous. Parents have insecurity issues with kids who are overwhelmed with too much of information holding in heads. Children are able to point out their parent’s mistake. Now a day’s children do not act or behave like children. It is disheartening because children know too much. When you are too aware of the flaws in life, living loses its idealistic thrill. Here knowledge is unpleasant.
The elders and oldies are happier to be in their ignorance. According to them ignorance is innocence. They are aware that world is globalizing and changing. But they keep telling the kids you’re too young to do this and that. However children don’t listen and have pain in the future. Like underage drinking, smoking, drugs, etc all the bad habits they develop imitating others. What you see is also knowledge. Sometimes it is good not to be informed of few things before age and time. Knowledge is not always prevailing it can be off-putting and scary.
Coping with different emotions is part of everyone's life, and we all feel happy and sad at different times at different stages. When I was a child I always wanted to grow looking after the joy of adulthood to others. I thought grown ups are happier and I wish to be one among them. I was hungry for maturity. But the situations I had were different than others. After attaining puberty I found childhood was better than these years. The start of adulthood had actually shut the door of innocence and a world full of pain and suffering was introduced to me. I was not ready to accept the real world. So I thought it is better to ignore some stuff of life. I felt happy that way. I found a kind of bliss in being ignorant
Once I heard that to acquire true happiness, we need to be open to new things, and not close our mind and clutch onto ignorance. But the poor and sloppy are happier than rich because they are not awaken to the true side of the world which is nothing but brutal. What we want is satisfaction from life. If it is achieved in being uneducated and uninformed it is subtle.
In the Tollywood movie Brindhawan Colony, the hero in the movie knows that the heroine is dead but he still comes to the same place after death and talk to her spirit. He continues to be in fancy of love. He is a willful ignorant. But he is happy this way. I think when our expectations of life don’t meet; we will hopefully get the same comforts of the person in fantasy-land. The same was shown in the form of love story in the movie
We all deserve a happy life. There is no wrong in finding the bliss being unaware of particular things in life. If you lie to others, you’re a liar. If lie yourself you’re still the same- a liar. It is something very tricky or calls it philosophical. The joy I feel in comforting myself is ignoring other people’s opinion and be my own. If it is a lie, Yes, I am a liar. What matters to me does not matter to the universe. If it is illusion, then yes I am illusionist. We are no one to bump into the lives of others who are happy. Is not I true? Do we need to drag ourselves back to reality of the real world, where in truth we may not be so happy?
In a short story “The doctor’s words” by R.K Narayan a doctor goes to treat an old friend who is bedridden and suffering ill. The conditional state of the friend is so bad that he can die any moment. Firstly doctor asks his friend to make his will ready. The wife of the friend threatens but the doctor consoles both that he will be fine by next morning and he wants his pal to be done with the important work. The doctor does every possible treatment and leaves the house telling him that he will see him other day. Doctor knows that he is lying and nothing can save his friend, it’s too late. He keeps the man and his wife in ignorance and also worried himself whole night. But when the doctor arrives in the morning, he is startled to see his friend sitting absolutely fine. God knows how the man under the mouth of dead is back or the doctors consoling words or the magic; the man is saved like a castle in the sky.
If ignorance protects us from pain then it is absolutely ok. When you are ignorant, you don't realize that there is wrong in the world. When you don’t want to compromise, you stay in your beliefs blindly. It is like staying in dark but still lightening your world with the invisible light of ignorance or pain. The brain doesn’t work when you lock the door by calling yourself ignorant.
Yet an ignorant person may invent a happier world to live in than that of the world they actually do live in. Ignorance is bliss indeed, after all anything for happiness. Hurray!
Sunday, April 05, 2009
NO CONTROL ON WEDDING BILLS
By M H Ahssan
Wish to cut down on wedding costs? Don’t have a clue from where to start. HNN tells you ways to rationalise the huge expenditure for making the event not only a memorable one but also affordable
Marriages may be made in heaven but if only they could be solemnised there too. Every bride and groom could fulfil their vision of a perfect wedding, in an idyllic setting with as many guests and fanciful embellishments as they desired, without spending a penny on it. However, it only gets this good in dreams. In real life, a wedding means weeks of nervous anxiety for all concerned, starting from the day the dates are decided to the moment when the final reception is over. Compounding this anxiety is the dip that you can see in your bank balance, every time a ceremony takes place.
As a parent, you may not give it too much thought, particularly if you’re one of those who have saved up for the day well in advance. In fact, even with the slowdown, most parents still dismiss forking out large sums of money with the thought that such an opportunity comes up only once or twice in a lifetime. Nevertheless, there are certain things you could do to rationalise the vast expenditure, without compromising on your child’s special day. If you’re wondering how this is possible, SundayET provides you with a ready reckoner.
CREATE A BUDGET
Most financial planners agree that as parents, the first step you should take is to chalk out what you can afford to spend on the wedding. Be realistic and do not allow yourself to be guided by emotions at this critical stage. This needs to be followed up with an estimation of the different areas of expenditure such as clothes, jewellery, gifts, food, décor and how much you want to allocate towards each of them. Mumbaibased financial planner Zankhana Shah feels that doing this allows you to make prioritise as well as take decisions which are realistic and practical. Meanwhile, keep your eyes open to over-spending on any particular element. Always keep the bride/groom privy to your plans at every stage to prevent misunderstandings.
However, if you find yourself worrying over where you can cut costs, then here are a few practical alternatives.
LIMIT THE NUMBERS
Step back and ask yourself just how many ceremonies you actually need before and after the wedding. Both brides and grooms have had as many as six-seven ceremonies each in the past but wedding planners say that it is possible to bring this number down to about three or four. For instance, many families are now combining ceremonies such as the wedding and the reception to save unnecessary expenses. Also if the relationship between the families is extremely good, you could decide to have joint functions and divide the expense equally.
Here’s another game you can play with numbers. Inviting 1,500-2,000 guests to your wedding may make you the talk of the town, but tapering your guest list by about 200-300 people could give you that little extra you needed to add an exotic element to the décor or dessert in the wedding buffet. If you are worried about hurting sentiments, divide your guest list such that different people are invited to different ceremonies. Also, keep your invitation card simple and classy and cut out the huge hampers and gifts accompanying the card. If you are extremely particular, then you could send a traditional item like a box of sweets with your card. Limit the number of cards printed and send online cards to as many as possible.
KEEP IT SIMPLE
Also remember that it’s not always necessary to spend huge sums to have a glamorous or a classy look. If you have a good wedding planner, he/she definitely has the skills to achieve the same look at a far lesser cost. According to Meher Sarid, a consultant to the wedding industry, “Over the last two years, wedding décor has taken a more minimalistic turn. So if you don’t want to use hand-embroidered velvet for your tents, then there are simpler and cheaper alternatives such as using velvet with prints on them or even thick satin.” Similarly, creating the basic paraphernalia for a wedding like the mandap, a small backdrop, a well-decorated entrance, using domestically available flowers and props is possible at a mere Rs 50, 000 while it could even go beyond Rs 10-15 lakh.
Jewellery is yet another segment where you are likely to see huge spends, especially for wedding. With gold prices at an all-time high hovering around Rs 15,000 (per 10 grams) mark, you could consider looking for alternatives like using jewellery that has been handed down in the family or use gold-polished jewellery or even switch to silver. In fact, this year, many brides have actually decided on fake jewellery owing to the higher prices of gold. Shah also recommends that in addition to giving children gifts in the form of money and gold, parents should also look at making investments for their children, which will compound and provide for his/her goals in a shorter time.
STICK TO YOUR HOMETOWN
Coming to wedding destinations, Sarid says that in the current scenario, it would make greater economic sense to limit your weddings to Indian soil or even to your hometown. This allows you to enlist the services of contacts that you have made in the past as well as the specialised skills of people in the family. However, with hotel rates and flight rates having dipped drastically, you have the chance to explore your options, provided you have the time and the ability to evaluate them carefully. However, many NRIs who were looking at arranging a wedding in India are now conducting marriages in their hometown as this would help them cut numbers.
The best bit is that with the slowdown many people, even those who can afford it, have become careful with their spending and have stopped the ostentatious display of wealth. In an atmosphere like this, a few less bells and whistles may not seem to be as grievous an error as it would be in normal times.
Wish to cut down on wedding costs? Don’t have a clue from where to start. HNN tells you ways to rationalise the huge expenditure for making the event not only a memorable one but also affordable
Marriages may be made in heaven but if only they could be solemnised there too. Every bride and groom could fulfil their vision of a perfect wedding, in an idyllic setting with as many guests and fanciful embellishments as they desired, without spending a penny on it. However, it only gets this good in dreams. In real life, a wedding means weeks of nervous anxiety for all concerned, starting from the day the dates are decided to the moment when the final reception is over. Compounding this anxiety is the dip that you can see in your bank balance, every time a ceremony takes place.
As a parent, you may not give it too much thought, particularly if you’re one of those who have saved up for the day well in advance. In fact, even with the slowdown, most parents still dismiss forking out large sums of money with the thought that such an opportunity comes up only once or twice in a lifetime. Nevertheless, there are certain things you could do to rationalise the vast expenditure, without compromising on your child’s special day. If you’re wondering how this is possible, SundayET provides you with a ready reckoner.
CREATE A BUDGET
Most financial planners agree that as parents, the first step you should take is to chalk out what you can afford to spend on the wedding. Be realistic and do not allow yourself to be guided by emotions at this critical stage. This needs to be followed up with an estimation of the different areas of expenditure such as clothes, jewellery, gifts, food, décor and how much you want to allocate towards each of them. Mumbaibased financial planner Zankhana Shah feels that doing this allows you to make prioritise as well as take decisions which are realistic and practical. Meanwhile, keep your eyes open to over-spending on any particular element. Always keep the bride/groom privy to your plans at every stage to prevent misunderstandings.
However, if you find yourself worrying over where you can cut costs, then here are a few practical alternatives.
LIMIT THE NUMBERS
Step back and ask yourself just how many ceremonies you actually need before and after the wedding. Both brides and grooms have had as many as six-seven ceremonies each in the past but wedding planners say that it is possible to bring this number down to about three or four. For instance, many families are now combining ceremonies such as the wedding and the reception to save unnecessary expenses. Also if the relationship between the families is extremely good, you could decide to have joint functions and divide the expense equally.
Here’s another game you can play with numbers. Inviting 1,500-2,000 guests to your wedding may make you the talk of the town, but tapering your guest list by about 200-300 people could give you that little extra you needed to add an exotic element to the décor or dessert in the wedding buffet. If you are worried about hurting sentiments, divide your guest list such that different people are invited to different ceremonies. Also, keep your invitation card simple and classy and cut out the huge hampers and gifts accompanying the card. If you are extremely particular, then you could send a traditional item like a box of sweets with your card. Limit the number of cards printed and send online cards to as many as possible.
KEEP IT SIMPLE
Also remember that it’s not always necessary to spend huge sums to have a glamorous or a classy look. If you have a good wedding planner, he/she definitely has the skills to achieve the same look at a far lesser cost. According to Meher Sarid, a consultant to the wedding industry, “Over the last two years, wedding décor has taken a more minimalistic turn. So if you don’t want to use hand-embroidered velvet for your tents, then there are simpler and cheaper alternatives such as using velvet with prints on them or even thick satin.” Similarly, creating the basic paraphernalia for a wedding like the mandap, a small backdrop, a well-decorated entrance, using domestically available flowers and props is possible at a mere Rs 50, 000 while it could even go beyond Rs 10-15 lakh.
Jewellery is yet another segment where you are likely to see huge spends, especially for wedding. With gold prices at an all-time high hovering around Rs 15,000 (per 10 grams) mark, you could consider looking for alternatives like using jewellery that has been handed down in the family or use gold-polished jewellery or even switch to silver. In fact, this year, many brides have actually decided on fake jewellery owing to the higher prices of gold. Shah also recommends that in addition to giving children gifts in the form of money and gold, parents should also look at making investments for their children, which will compound and provide for his/her goals in a shorter time.
STICK TO YOUR HOMETOWN
Coming to wedding destinations, Sarid says that in the current scenario, it would make greater economic sense to limit your weddings to Indian soil or even to your hometown. This allows you to enlist the services of contacts that you have made in the past as well as the specialised skills of people in the family. However, with hotel rates and flight rates having dipped drastically, you have the chance to explore your options, provided you have the time and the ability to evaluate them carefully. However, many NRIs who were looking at arranging a wedding in India are now conducting marriages in their hometown as this would help them cut numbers.
The best bit is that with the slowdown many people, even those who can afford it, have become careful with their spending and have stopped the ostentatious display of wealth. In an atmosphere like this, a few less bells and whistles may not seem to be as grievous an error as it would be in normal times.
IT'S ALL ABOUT MONEY HONEY
By M H Ahssan
AFTER A DOWNWARD TREND FOR AN YEAR, THE INDIAN STOCK MARKETS ARE AT LAST SHOWING SOME SIGNS OF REVIVAL. HNN HERE TRIES TO TRACK THE UPWARD MOVEMENT AND GAUGE THE MOMENTUM
Gone is the age of buying and forgetting share portfolios. The savvy investing class is looking at making a quick buck even in the current market.
The widely held theory is that the only time to make money in shares is when the market is rising. But, several investors have worked towards dispelling this perception in the recent bear market, armed with improved products and better information that have helped them capture movements either way.
Not many dispute the fact that the scope for making profits is much higher in a bull market than in a downtrend. Still, many nimble-footed investors have chucked the ‘buy and forget’ investment style for the moment in search of some quick gains. Market participants attribute this confidence among such investors to increased possibilities to trade through futures and options.
“People are increasingly adopting specific strategies in derivatives to make money during bear market,” said Gaurav Dua, research head at retail brokerage Sharekhan. “The most common of them is to buy put options and wait for the market to fall. Avid investors also make use of covered calls to
make money,” he added.
Market participants expect a significant build-up in put options over the coming weeks in the run-up to the general election results mid-May. While players are hoping for a coalition led by Congress or BJP to come to power, changing equations in the political circles over the last few weeks have made predictions all the more difficult.
“Historically, markets have been edgy ahead of elections. We think concerns of a hung Parliament could lead to a 15% correction in markets this time,” said Bank of America Merrill Lynch, in a recent report.
“Markets are looking for a stable government that will push through incremental structural reforms after the election. But for now at least, the outcome of the election remains very much in the balance,” Nomura International said in a report. “A poor fiscal situation and a likely weak coalition government at the centre should mean that a major post-election rally is unlikely,” it said.
Amid the confusion over the outcome of elections, investors will also closely watch the March quarter results of Indian companies. Analysts said any sharp decline in earnings could undo all the optimism that has been build-up of late and trigger a sell-off in the market.
Though companies are expected to report a further dip in earnings this quarter, investors are awaiting comments from companies about the broader business outlook. While some domestic economic data has sparked hopes that the worst could be over, analysts are still cautious about concluding that India is back on the growth path.
“While there has been a visible improvement in demand in some domestic sectors, this will not translate into earnings upgrades,” CLSA said in a report.
The ABN AMRO Bank’s purchasing managers’ index (PMI), a key economic barometer based on a survey of 500 companies, rose to 49.50 in March from 47.0 in February. The index had hit a low of 44.4 in December. Nomura does not expect a speedy rebound in the economy’s growth, even though it sees the economy showing ‘nascent signs of bottoming out’ by mid-May.
“A noticeable economic recovery is unlikely until FY11 (year ending March 2011), underpinned by very loose macro policies (at home and abroad), low commodity prices and an easing of the global credit crunch,” it added.
Apart from domestic factors, developments in the global economy and financial markets, mainly the US, will play a significant role in dictating the trend in equities here. Global markets have rallied 20-25% over the last three weeks on the recent move by the US government to clean up the financial sector. The latest step to allow banks more flexibility to value toxic assets, which have forced significant write-downs, has also been cheered by markets. But, market partcipants do not seem to be convinced whether these developments are good enough indications of the worst being over and term the recent upside as a ‘bear-market rally’. “We have not witnessed a significant change in fundamentals, locally or globally to justify such a rally.
It is only a operator-driven rally and many investors would be caught on the wrong foot,” said Ambareesh Baliga, vice president, Karvy Stockbroking. Market participants said investors who managed to buy shares at the year’s low can contemplate booking profits, given that the likelihood of a decline is higher now than before.
“Investors will be able to money if they trade with a shorter time horizon. The idea is to buy at lower levels and sell at 15% to 20% gains,” said Anmol Sekhri, portfolio manager at brokerage Bonanza Portfolio. He thinks that the current level is not the best to buy for the longer them.
Centrum Broking’s senior vice-president, portfolio management services, Mehraboon Irani believes there is scope for investors to make upto 30-40% returns even in this market through short-term trading strategies, without the help of derivatives. “The idea is to buy only high-beta large caps; highrisk investors can buy high beta value - low fundmental stocks while medium risk-taking investors can buy high beta - sound fundamental stocks like ABB, L&T or Tata Steel. Riskaverse investors should only buy stocks with good fundmentals and reasonably good beta levels HDFC or SBI,” Irani said.
Stable govt will see stock rally
If a stable government is formed, the market could gain up to 30% in next six months. But weak coalitions could see roller-coasters ahead
If the stock market performance after the formation of a new government over last few elections is anything to go by, investors can be sure of one thing - if a stable government is formed, the market can gain up to 30% over the next six months. However, if it is again an unstable coalition, then they are in for some more rough rides.
Apart from the masses, the investor community too, has a keen eye on the elections. This is because, the formation of a stable government invariably provides the government more leg-room to take tougher policy decisions, which may be against the interest of some sections, but helps corporate India and in turn, the investors.
An analysis of post-election market trends over the last two decades, the period for which market data is available, provides interesting insights and reaffirms the above hypothesis. On all the three occasion out of the last five elections, when a stable government was formed, the sensex generated positive returns. On the other two occasions, after ’96 and ’98 elections, when there was a crisis of stability, markets have generated negative return of nearly 20%. Out of the three positive occasions, on two occasions, the returns were more than 25%. Interestingly, on both of these occasions, Congress or Congress-led governments were formed at the centre. On the third occasion, it was a marginally positive return of 3%.
The stock market generated a return of nearly 37.6%, after the first election under consideration here. The gain in the first election seems to have been impacted by Harshad Mehta scam. However, a closer look reveals that the real bubble started after the six-month period considered here. While the returns during the first six-month of government formation was still reasonable at 37%, the next three months, when the bubble was really formed, gave a return of nearly 120%!
The two occasions when markets generated negative returns were after ’96 and ’98 elections, when the United Front and BJP led coalition were formed respectively. The second of this was close to important international events, namely the East-Asian currency crisis of 1997-98. However, a closer look reveals that the maximum impact of this was in the second half of 1997, which is before the elections, when markets declined by nearly 25%. In fact, in the two months preceding the election, markets had gained about 20%, which was lost in the subsequent months.
The only election that led to a stable government and still did not generate returns was in ’99 when the BJP led coalition came to power. However, this was also the only election to have been impacted by external factor, namely the bursting of tech bubble in 2000. NASDAQ, the key indicator of the bubble, rallied in the months preceding March 2000 when it peaked and corrected by nearly 40% thereafter. Sensex had a nearly similar run, peaking in Feb’00 with 22% returns and then witnessing a correction.
Another interesting fact that comes out of the analysis is that out of the five occasions, the market has shown a rally/correction only once in the first two months, whereas on all other occasions, it has been a gradual movement over a six-month period. This holds an important lesson for the future - any expectation of short-term gain may be disappointing. Investors may have to hold on for a while, if there are signs of stability and will get a chance to exit if instability persists.
AFTER A DOWNWARD TREND FOR AN YEAR, THE INDIAN STOCK MARKETS ARE AT LAST SHOWING SOME SIGNS OF REVIVAL. HNN HERE TRIES TO TRACK THE UPWARD MOVEMENT AND GAUGE THE MOMENTUM
Gone is the age of buying and forgetting share portfolios. The savvy investing class is looking at making a quick buck even in the current market.
The widely held theory is that the only time to make money in shares is when the market is rising. But, several investors have worked towards dispelling this perception in the recent bear market, armed with improved products and better information that have helped them capture movements either way.
Not many dispute the fact that the scope for making profits is much higher in a bull market than in a downtrend. Still, many nimble-footed investors have chucked the ‘buy and forget’ investment style for the moment in search of some quick gains. Market participants attribute this confidence among such investors to increased possibilities to trade through futures and options.
“People are increasingly adopting specific strategies in derivatives to make money during bear market,” said Gaurav Dua, research head at retail brokerage Sharekhan. “The most common of them is to buy put options and wait for the market to fall. Avid investors also make use of covered calls to
make money,” he added.
Market participants expect a significant build-up in put options over the coming weeks in the run-up to the general election results mid-May. While players are hoping for a coalition led by Congress or BJP to come to power, changing equations in the political circles over the last few weeks have made predictions all the more difficult.
“Historically, markets have been edgy ahead of elections. We think concerns of a hung Parliament could lead to a 15% correction in markets this time,” said Bank of America Merrill Lynch, in a recent report.
“Markets are looking for a stable government that will push through incremental structural reforms after the election. But for now at least, the outcome of the election remains very much in the balance,” Nomura International said in a report. “A poor fiscal situation and a likely weak coalition government at the centre should mean that a major post-election rally is unlikely,” it said.
Amid the confusion over the outcome of elections, investors will also closely watch the March quarter results of Indian companies. Analysts said any sharp decline in earnings could undo all the optimism that has been build-up of late and trigger a sell-off in the market.
Though companies are expected to report a further dip in earnings this quarter, investors are awaiting comments from companies about the broader business outlook. While some domestic economic data has sparked hopes that the worst could be over, analysts are still cautious about concluding that India is back on the growth path.
“While there has been a visible improvement in demand in some domestic sectors, this will not translate into earnings upgrades,” CLSA said in a report.
The ABN AMRO Bank’s purchasing managers’ index (PMI), a key economic barometer based on a survey of 500 companies, rose to 49.50 in March from 47.0 in February. The index had hit a low of 44.4 in December. Nomura does not expect a speedy rebound in the economy’s growth, even though it sees the economy showing ‘nascent signs of bottoming out’ by mid-May.
“A noticeable economic recovery is unlikely until FY11 (year ending March 2011), underpinned by very loose macro policies (at home and abroad), low commodity prices and an easing of the global credit crunch,” it added.
Apart from domestic factors, developments in the global economy and financial markets, mainly the US, will play a significant role in dictating the trend in equities here. Global markets have rallied 20-25% over the last three weeks on the recent move by the US government to clean up the financial sector. The latest step to allow banks more flexibility to value toxic assets, which have forced significant write-downs, has also been cheered by markets. But, market partcipants do not seem to be convinced whether these developments are good enough indications of the worst being over and term the recent upside as a ‘bear-market rally’. “We have not witnessed a significant change in fundamentals, locally or globally to justify such a rally.
It is only a operator-driven rally and many investors would be caught on the wrong foot,” said Ambareesh Baliga, vice president, Karvy Stockbroking. Market participants said investors who managed to buy shares at the year’s low can contemplate booking profits, given that the likelihood of a decline is higher now than before.
“Investors will be able to money if they trade with a shorter time horizon. The idea is to buy at lower levels and sell at 15% to 20% gains,” said Anmol Sekhri, portfolio manager at brokerage Bonanza Portfolio. He thinks that the current level is not the best to buy for the longer them.
Centrum Broking’s senior vice-president, portfolio management services, Mehraboon Irani believes there is scope for investors to make upto 30-40% returns even in this market through short-term trading strategies, without the help of derivatives. “The idea is to buy only high-beta large caps; highrisk investors can buy high beta value - low fundmental stocks while medium risk-taking investors can buy high beta - sound fundamental stocks like ABB, L&T or Tata Steel. Riskaverse investors should only buy stocks with good fundmentals and reasonably good beta levels HDFC or SBI,” Irani said.
Stable govt will see stock rally
If a stable government is formed, the market could gain up to 30% in next six months. But weak coalitions could see roller-coasters ahead
If the stock market performance after the formation of a new government over last few elections is anything to go by, investors can be sure of one thing - if a stable government is formed, the market can gain up to 30% over the next six months. However, if it is again an unstable coalition, then they are in for some more rough rides.
Apart from the masses, the investor community too, has a keen eye on the elections. This is because, the formation of a stable government invariably provides the government more leg-room to take tougher policy decisions, which may be against the interest of some sections, but helps corporate India and in turn, the investors.
An analysis of post-election market trends over the last two decades, the period for which market data is available, provides interesting insights and reaffirms the above hypothesis. On all the three occasion out of the last five elections, when a stable government was formed, the sensex generated positive returns. On the other two occasions, after ’96 and ’98 elections, when there was a crisis of stability, markets have generated negative return of nearly 20%. Out of the three positive occasions, on two occasions, the returns were more than 25%. Interestingly, on both of these occasions, Congress or Congress-led governments were formed at the centre. On the third occasion, it was a marginally positive return of 3%.
The stock market generated a return of nearly 37.6%, after the first election under consideration here. The gain in the first election seems to have been impacted by Harshad Mehta scam. However, a closer look reveals that the real bubble started after the six-month period considered here. While the returns during the first six-month of government formation was still reasonable at 37%, the next three months, when the bubble was really formed, gave a return of nearly 120%!
The two occasions when markets generated negative returns were after ’96 and ’98 elections, when the United Front and BJP led coalition were formed respectively. The second of this was close to important international events, namely the East-Asian currency crisis of 1997-98. However, a closer look reveals that the maximum impact of this was in the second half of 1997, which is before the elections, when markets declined by nearly 25%. In fact, in the two months preceding the election, markets had gained about 20%, which was lost in the subsequent months.
The only election that led to a stable government and still did not generate returns was in ’99 when the BJP led coalition came to power. However, this was also the only election to have been impacted by external factor, namely the bursting of tech bubble in 2000. NASDAQ, the key indicator of the bubble, rallied in the months preceding March 2000 when it peaked and corrected by nearly 40% thereafter. Sensex had a nearly similar run, peaking in Feb’00 with 22% returns and then witnessing a correction.
Another interesting fact that comes out of the analysis is that out of the five occasions, the market has shown a rally/correction only once in the first two months, whereas on all other occasions, it has been a gradual movement over a six-month period. This holds an important lesson for the future - any expectation of short-term gain may be disappointing. Investors may have to hold on for a while, if there are signs of stability and will get a chance to exit if instability persists.
Ghee says ‘Jai Ho’
By M H Ahssan
You know what’s the perfect symbol of India’s bindaas gung-ho spirit, its cussed refusal to mimic the West, and its unpredictability? It’s ghee. India has always loved ghee, or pure butterfat. Ayurveda says ghee is great for increasing self-awareness and intelligence, besides getting a complexion and voice to die for. Ghee is soothing and delicious. It evokes memories of dripping rotis, drenched rice, and bowls of dal with a half-inch layer floating on top. Those innocent days before we learnt to eat alien palm oil and soya bean oil.
At a time when jobs are toast, and household budgets stretched after salary cuts (a throbbing vein of personal pain currently), our ghee consumption is rising 8%. Instead of dropping dead like flies from heart disease and strokes, Indians eat more than 32,000 t ghee annually. It’s our favourite comfort food, that beats paneer, ice cream and mithai.
Ignoring the West’s horror of saturated fats, Indians now cheerfully pay 35% more for desi ghee. A 1-kilo tin that sold for Rs 140 in Delhi’s wholesale market last year, is now at Rs 190. Prices are expected to climb further in the next two months.
Love for ghee is universal, as widespread among the urban middle-class as the rural masses. Consumers clearly know the benefits of ghee because close rival vanaspati, that comes from vegetable fat, is no longer popular in the kitchen.
What’s more important, rising demand for ghee affects all of us. Milk is the raw material for ghee. And it’s a rare Indian household that doesn’t buy at least a few cups fresh milk daily. This tug-of-war between ghee and liquid milk means one has to give. The bet is on milk. Milk is going to become much more expensive this summer. The demand-supply dynamics makes it a dead cert. Look at the numbers. India is one of the world’s top milk producers, with 70 million dairy farmers selling 280 million litres daily. Supply is rising 4% annually. But equally divided, that still means each Indian’s daily share is much less than a 330-ml Diet Coke can.
So there is a huge pent-up demand for milk, even if it originates as a few teaspoons to stir into tea and coffee. Three quarters of the total supply is sold as liquid milk. As one out of every two litres is sold in cities, where consumers are relatively better off, often price becomes no object for an essential item like milk. Demand will heat further as more of India becomes urban.
The rest of India’s milk - about 40 mn t in a year- is used for making ghee, butter, skimmed milk powder, khoya, paneer, dahi, cheese, mithai. Ghee gets the lion’s share because it is most popular and also fetches the maximum premium. So when ghee demand rises, dairymen start grabbing a larger share of liquid milk for it. That squeezes liquid milk supply and further pushes prices.
This season there is an additional complication. Every four years, Indian milch cattle hits a lean patch, which reduces overall supply of milk. 2009 is one such ‘leap’ year. To worsen matters, fodder is scarce because poor rains and parched soil means there is very little grass for grazing. So milk supply, especially in the South, Andhra, and Maharshtra, will decline.
On the other hand, both milk and ghee demand will continue to rise. Dairies will buy full cream milk more aggressively to make ghee. This means consumers will have to outbid dairies if they want creamy milk. Full cream milk is certain to become more expensive fairly soon.
Luckily for the calorie-conscious, toned milk prices won’t rise as fast because it has no fat for ghee. Toned milk is simply a mix of water and skimmed milk powder, which is in ample supply, for now. Dairies consider toned milk a poor cousin of full cream milk because it’s demand is growing by an anemic 2% annually. We may be obsessed with our metrocentric food fads. Ultimately the creamy layer will dictate terms.
The other option before ghee manufacturers is to import butter oil, a close substitute, from New Zealand. That makes sense currently because overseas prices are low. Only around 8,000 t, or 25% of total demand, is expected to get shipped in. Yet that is enough to worry milk cooperatives, who fear it may slacken the tug-of-war between consumers and ghee brands over their milk. They want higher customs duty on butteroil to ‘protect’ farmers. Ghee guys say, protect consumers by allowing duty-free import.
You know what’s the perfect symbol of India’s bindaas gung-ho spirit, its cussed refusal to mimic the West, and its unpredictability? It’s ghee. India has always loved ghee, or pure butterfat. Ayurveda says ghee is great for increasing self-awareness and intelligence, besides getting a complexion and voice to die for. Ghee is soothing and delicious. It evokes memories of dripping rotis, drenched rice, and bowls of dal with a half-inch layer floating on top. Those innocent days before we learnt to eat alien palm oil and soya bean oil.
At a time when jobs are toast, and household budgets stretched after salary cuts (a throbbing vein of personal pain currently), our ghee consumption is rising 8%. Instead of dropping dead like flies from heart disease and strokes, Indians eat more than 32,000 t ghee annually. It’s our favourite comfort food, that beats paneer, ice cream and mithai.
Ignoring the West’s horror of saturated fats, Indians now cheerfully pay 35% more for desi ghee. A 1-kilo tin that sold for Rs 140 in Delhi’s wholesale market last year, is now at Rs 190. Prices are expected to climb further in the next two months.
Love for ghee is universal, as widespread among the urban middle-class as the rural masses. Consumers clearly know the benefits of ghee because close rival vanaspati, that comes from vegetable fat, is no longer popular in the kitchen.
What’s more important, rising demand for ghee affects all of us. Milk is the raw material for ghee. And it’s a rare Indian household that doesn’t buy at least a few cups fresh milk daily. This tug-of-war between ghee and liquid milk means one has to give. The bet is on milk. Milk is going to become much more expensive this summer. The demand-supply dynamics makes it a dead cert. Look at the numbers. India is one of the world’s top milk producers, with 70 million dairy farmers selling 280 million litres daily. Supply is rising 4% annually. But equally divided, that still means each Indian’s daily share is much less than a 330-ml Diet Coke can.
So there is a huge pent-up demand for milk, even if it originates as a few teaspoons to stir into tea and coffee. Three quarters of the total supply is sold as liquid milk. As one out of every two litres is sold in cities, where consumers are relatively better off, often price becomes no object for an essential item like milk. Demand will heat further as more of India becomes urban.
The rest of India’s milk - about 40 mn t in a year- is used for making ghee, butter, skimmed milk powder, khoya, paneer, dahi, cheese, mithai. Ghee gets the lion’s share because it is most popular and also fetches the maximum premium. So when ghee demand rises, dairymen start grabbing a larger share of liquid milk for it. That squeezes liquid milk supply and further pushes prices.
This season there is an additional complication. Every four years, Indian milch cattle hits a lean patch, which reduces overall supply of milk. 2009 is one such ‘leap’ year. To worsen matters, fodder is scarce because poor rains and parched soil means there is very little grass for grazing. So milk supply, especially in the South, Andhra, and Maharshtra, will decline.
On the other hand, both milk and ghee demand will continue to rise. Dairies will buy full cream milk more aggressively to make ghee. This means consumers will have to outbid dairies if they want creamy milk. Full cream milk is certain to become more expensive fairly soon.
Luckily for the calorie-conscious, toned milk prices won’t rise as fast because it has no fat for ghee. Toned milk is simply a mix of water and skimmed milk powder, which is in ample supply, for now. Dairies consider toned milk a poor cousin of full cream milk because it’s demand is growing by an anemic 2% annually. We may be obsessed with our metrocentric food fads. Ultimately the creamy layer will dictate terms.
The other option before ghee manufacturers is to import butter oil, a close substitute, from New Zealand. That makes sense currently because overseas prices are low. Only around 8,000 t, or 25% of total demand, is expected to get shipped in. Yet that is enough to worry milk cooperatives, who fear it may slacken the tug-of-war between consumers and ghee brands over their milk. They want higher customs duty on butteroil to ‘protect’ farmers. Ghee guys say, protect consumers by allowing duty-free import.
Saree saga: Draped for elegance and growth too
By Kajol Singh
Shantaram's eyes were weary. But he couldn’t suppress the proud smile on his face. A masterpiece all the way, he thought to himself giving the nine-yard wrap one last look. A brush of colour, a touch of tradition and an entire year of laborious craftsmanship... the meticulous weaves had finally taken shape. And it had been worth all the days of working round the clock for Shantaram’s family. After tying the knots on warp and weft threads, dyeing, colouring, weaving and finishing, the beautiful double Ikat Patola saree was ready.
It’s not just the Patola saree of Gujarat that is impressive. In fact, the saree in itself is perhaps the most innovative garment in the history of India. What’s more, it’s holding out in the era of slowdown. The brisk business speaks volumes. Sample this: Many leading retail houses in the country admit to 15-20% increase in saree sales over the last year. Even expensive designer sarees are now being bought by a whole lot of 20-somethings. A visible indication of saree sales being untouched by slowdown blues. Industry estimates peg the saree market at a massive $12 billion in India.
Experts say that the demand is steady despite the economic slump. “Sarees like the Patola command a niche market with primarily the NRIs and affluent lot buying them from us. Our sale of sarees have in fact gone up by 20% over the last year,” says S K Chaturvedi, MD of Gujarat State Handloom Handicrafts Development Corporation which was formed in ‘73 for revival of handlooms and handicrafts of Gujarat.
Various other states of India, too, can be credited for making the saree an iconic sensation. Each saree mirrors an effortless story woven around the country’s royal tradition and heritage. With their unique charm and appeal, it is little wonder that sales have still been soaring at a time when spending on other categories have seen a sharp drop.
A peek into the past also offers interesting insights into the story of the saree. It was Maharani Indira Devi of Cooch Behar who made the idea of French chiffon sarees extremely popular in the royal circle. Princess Niloufer from Hyderabad wore fashionable chiffon sarees showing off asymmetrical sequin work. Then synonymous with royalty, the saree’s glory exists even today.
States, including Gujarat, Maharashtra, Tamil Nadu, West Bengal and Orissa, narrate stories of rich heritage spun into this elegant garment. While Gujarat is known more for its reversible double Ikat Patolas, it is the fine silk Kanjeevarams that are synonymous with the South. Likewise its the Paithani which are famous in Maharashtra and Ikat sarees which are dominant in Orissa. The fine silk and opulent embroidery in Banarasi sarees from Uttar Pradesh make them highly sought after, while ‘Kantha work’ and Balucharis are prominent from Bengal. The Uppada silk saree is typically of Andhra Pradesh.
Not surprisingly, each of these sarees are quite expensive. Bright coloured Kanjeevarams are the famous reflections of the art and craft of South India. Made by craftsman in Kanchi and characterised by lively colours, the quality of silk used is extremely fine. Gold zari work can be significantly seen on them, also making for a good investment. The premium range in these is between Rs 10,000-Rs 15,000. But besides the popular Kanjeevaram, there are other sarees in Tamil Nadu too which are equally well-known.
Attracting global fashion houses
Brocades, tissue sarees, Thagadu and Sarboji sarees also form the exclusive range in silk sarees. Tissue sarees, usually worn by the bride are woven in gold thread and are priced mostly upwards of Rs 1 lakh.
Mr Jairam, MD of Rasi Radha Silk Emporium in Chennai, a 110-year old textile firm in Chennai, feels that even though fewer people may be wearing it now, a growth in demand is still being seen. "The saree is not dying as we have seen a steady growth in their demand over the years. We saw a steady growth of 17% till October. The dip in sales post October has been marginal. It is a significant part of the wedding market, hence the sales are not affected as much," he says.
Nalli Group of Companies, a leading player in the textile and retail business, has also been experiencing year-on-year growth in saree sales. "It's more of a perception that the saree is going out of fashion. They have been clocking good sales and growth every year," says Lavanya Nalli, president of the Nalli Group of Companies.
The South, in fact, is known for its wide range in saree wear besides the Kanjeevarams. Also famous is the Mysore Silk saree which is known for extensive and rich zari embroidery on the borders of the saree. From Andhra Pradesh, the pure silk Uppadas display geometric designs and intricacy, requiring a lot of skill and a few months to produce, thus pushing up the cost of these sarees.
The sarees of Gujarat are no less magnificent. The reversible double Ikat Patola, one of the most famous sarees of the state, can range anywhere between Rs 80,000-1,50,000! Woven in Patan in Gujarat, it takes over a year of painstaking effort to make one such saree. Besides the Patola, there is also the Bandhini saree which is the tie and dye saree of Gujarat.
Another popular saree mostly worn in weddings is the Gharchola saree which is woven in Khambat while the embellishment is done in Kutch and Jamnagar. Mainly worn in wedding ceremonies, the red and white combination in these sarees is a preferred choice. Adds Mr Chaturvedi, "Gujarat is famous for various types of sarees. In the Patola, the craft and motif is very intricate. The yarn is dyed in such a way that the motifs form beautifully on the saree. It is symbolic of the rich craft of India." Equally enchanting is the hand-woven Paithani saree of Maharashtra which is a distinctive style featuring bird motifs as well as stars, lotus, flowers etc. A Paithani could range anywhere between Rs 3,000-Rs 1 lakh or above depending on the way it is designed. Made of pure silk, these use gold embroidery extensively. However, in recent times even silver threads topped with gold are a common feature, thus bringing down the overall cost of the saree.
But if you thought the saree's popularity was only restricted on home turf, think again. International fashion houses such as the French fashion house Balenciaga included the saree in their creations as early as 1937. And in 2007, Nicolas Ghesquiere, creative director of the fashion house reintroduced the saree in a glamourous avatar showing innovative drapes in his collections. He even had an entire line dedicated in Fall 2009 for the Paris Fashion Week called the Sari Silhouette Collection!
Experts, however, feel that continuous steps need to be taken to ensure a steady sales growth for the saree. Rta Kapoor, author and researcher, for 'Saris of India' volumes & 'Handcrafted Indian Textiles,' has been involved in several initiatives to revive the evergreen wonder. "The saree has to be re-introduced as a contemporary garment that can be woven in many new ways as it is so flexible and can be constantly refashioned. Only then can the looms that are facing a threat from cheap imports be given a new lease of life," says Kapoor.
In fact when it comes to innovation, the varied drape styles of designer sarees has increasingly been attracting the younger generation. Fashion designer Ritu Kumar, whose collection comprises a large variety of sarees in metallic work, says that a lot of innovations are taking place by designers to attract the younger buyers.
"The drapes are very versatile now. The blouses are also more innovative in cholis, halters, strings and backless styles. One can drape the saree depending on the blouse being worn. For evening wear, it is now fast becoming a preferred option by women in their mid 20s," she says. While styles may come and go, this is one clothing item that continues to have its loyal base of customers. An ageless wonder all the way.
Shantaram's eyes were weary. But he couldn’t suppress the proud smile on his face. A masterpiece all the way, he thought to himself giving the nine-yard wrap one last look. A brush of colour, a touch of tradition and an entire year of laborious craftsmanship... the meticulous weaves had finally taken shape. And it had been worth all the days of working round the clock for Shantaram’s family. After tying the knots on warp and weft threads, dyeing, colouring, weaving and finishing, the beautiful double Ikat Patola saree was ready.
It’s not just the Patola saree of Gujarat that is impressive. In fact, the saree in itself is perhaps the most innovative garment in the history of India. What’s more, it’s holding out in the era of slowdown. The brisk business speaks volumes. Sample this: Many leading retail houses in the country admit to 15-20% increase in saree sales over the last year. Even expensive designer sarees are now being bought by a whole lot of 20-somethings. A visible indication of saree sales being untouched by slowdown blues. Industry estimates peg the saree market at a massive $12 billion in India.
Experts say that the demand is steady despite the economic slump. “Sarees like the Patola command a niche market with primarily the NRIs and affluent lot buying them from us. Our sale of sarees have in fact gone up by 20% over the last year,” says S K Chaturvedi, MD of Gujarat State Handloom Handicrafts Development Corporation which was formed in ‘73 for revival of handlooms and handicrafts of Gujarat.
Various other states of India, too, can be credited for making the saree an iconic sensation. Each saree mirrors an effortless story woven around the country’s royal tradition and heritage. With their unique charm and appeal, it is little wonder that sales have still been soaring at a time when spending on other categories have seen a sharp drop.
A peek into the past also offers interesting insights into the story of the saree. It was Maharani Indira Devi of Cooch Behar who made the idea of French chiffon sarees extremely popular in the royal circle. Princess Niloufer from Hyderabad wore fashionable chiffon sarees showing off asymmetrical sequin work. Then synonymous with royalty, the saree’s glory exists even today.
States, including Gujarat, Maharashtra, Tamil Nadu, West Bengal and Orissa, narrate stories of rich heritage spun into this elegant garment. While Gujarat is known more for its reversible double Ikat Patolas, it is the fine silk Kanjeevarams that are synonymous with the South. Likewise its the Paithani which are famous in Maharashtra and Ikat sarees which are dominant in Orissa. The fine silk and opulent embroidery in Banarasi sarees from Uttar Pradesh make them highly sought after, while ‘Kantha work’ and Balucharis are prominent from Bengal. The Uppada silk saree is typically of Andhra Pradesh.
Not surprisingly, each of these sarees are quite expensive. Bright coloured Kanjeevarams are the famous reflections of the art and craft of South India. Made by craftsman in Kanchi and characterised by lively colours, the quality of silk used is extremely fine. Gold zari work can be significantly seen on them, also making for a good investment. The premium range in these is between Rs 10,000-Rs 15,000. But besides the popular Kanjeevaram, there are other sarees in Tamil Nadu too which are equally well-known.
Attracting global fashion houses
Brocades, tissue sarees, Thagadu and Sarboji sarees also form the exclusive range in silk sarees. Tissue sarees, usually worn by the bride are woven in gold thread and are priced mostly upwards of Rs 1 lakh.
Mr Jairam, MD of Rasi Radha Silk Emporium in Chennai, a 110-year old textile firm in Chennai, feels that even though fewer people may be wearing it now, a growth in demand is still being seen. "The saree is not dying as we have seen a steady growth in their demand over the years. We saw a steady growth of 17% till October. The dip in sales post October has been marginal. It is a significant part of the wedding market, hence the sales are not affected as much," he says.
Nalli Group of Companies, a leading player in the textile and retail business, has also been experiencing year-on-year growth in saree sales. "It's more of a perception that the saree is going out of fashion. They have been clocking good sales and growth every year," says Lavanya Nalli, president of the Nalli Group of Companies.
The South, in fact, is known for its wide range in saree wear besides the Kanjeevarams. Also famous is the Mysore Silk saree which is known for extensive and rich zari embroidery on the borders of the saree. From Andhra Pradesh, the pure silk Uppadas display geometric designs and intricacy, requiring a lot of skill and a few months to produce, thus pushing up the cost of these sarees.
The sarees of Gujarat are no less magnificent. The reversible double Ikat Patola, one of the most famous sarees of the state, can range anywhere between Rs 80,000-1,50,000! Woven in Patan in Gujarat, it takes over a year of painstaking effort to make one such saree. Besides the Patola, there is also the Bandhini saree which is the tie and dye saree of Gujarat.
Another popular saree mostly worn in weddings is the Gharchola saree which is woven in Khambat while the embellishment is done in Kutch and Jamnagar. Mainly worn in wedding ceremonies, the red and white combination in these sarees is a preferred choice. Adds Mr Chaturvedi, "Gujarat is famous for various types of sarees. In the Patola, the craft and motif is very intricate. The yarn is dyed in such a way that the motifs form beautifully on the saree. It is symbolic of the rich craft of India." Equally enchanting is the hand-woven Paithani saree of Maharashtra which is a distinctive style featuring bird motifs as well as stars, lotus, flowers etc. A Paithani could range anywhere between Rs 3,000-Rs 1 lakh or above depending on the way it is designed. Made of pure silk, these use gold embroidery extensively. However, in recent times even silver threads topped with gold are a common feature, thus bringing down the overall cost of the saree.
But if you thought the saree's popularity was only restricted on home turf, think again. International fashion houses such as the French fashion house Balenciaga included the saree in their creations as early as 1937. And in 2007, Nicolas Ghesquiere, creative director of the fashion house reintroduced the saree in a glamourous avatar showing innovative drapes in his collections. He even had an entire line dedicated in Fall 2009 for the Paris Fashion Week called the Sari Silhouette Collection!
Experts, however, feel that continuous steps need to be taken to ensure a steady sales growth for the saree. Rta Kapoor, author and researcher, for 'Saris of India' volumes & 'Handcrafted Indian Textiles,' has been involved in several initiatives to revive the evergreen wonder. "The saree has to be re-introduced as a contemporary garment that can be woven in many new ways as it is so flexible and can be constantly refashioned. Only then can the looms that are facing a threat from cheap imports be given a new lease of life," says Kapoor.
In fact when it comes to innovation, the varied drape styles of designer sarees has increasingly been attracting the younger generation. Fashion designer Ritu Kumar, whose collection comprises a large variety of sarees in metallic work, says that a lot of innovations are taking place by designers to attract the younger buyers.
"The drapes are very versatile now. The blouses are also more innovative in cholis, halters, strings and backless styles. One can drape the saree depending on the blouse being worn. For evening wear, it is now fast becoming a preferred option by women in their mid 20s," she says. While styles may come and go, this is one clothing item that continues to have its loyal base of customers. An ageless wonder all the way.
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