IntroductionIn the past twenty-seven years after 1991, the number of new developments that have happened has brought about irreversible changes. These changes have always centered around a) Increased professionalism of Indian organizations b) Emergence of totally new markets linked to global developments c) Massive expansion of the B Schools and d) The massive number of new markets all over India
Increased professionalization of Indian organizationsSome three decades ago, every single Indian manager used to talk about "practical" problems of every kind. A breakdown in the shop floor of a machine was a "practical" problem. If ten workmen in two vital departments were to absent themselves on a single day, it was a "practical" problem.
Today, the first problem has been mostly solved through enlightened Total Productive Maintenance (TPM) and Total Quality Management (TQM) practices at Mahindra and Mahindra, the entire Aditya Birla Group, the TVS group, Sona Steering Systems, Maruti Suzuki, MRF, JK Tyres, and at least two hundred other organizations. In Chennai, the Rane group of organizations is not only a Deming Award winner but has changed itself into a highly cost-effective conglomerate.
In hundreds of Indian organizations, the owner-managers have sons and daughters who manage key positions of growth. The younger lot of Ambanis are piloting Jio into the bigger league. The battle of survival has given the competitors like Airtel and Vodafone sleepless nights. They are unable to do anything against the pricing strategies of Jio. BSNL is likely to be sold to a private major as the Public Sector company cannot manage it at all. Likewise, Asian Paints is going from strength in the paint industry.
A company like Cavinkare is able to attract professionals from the likes of Unilever India, only because of the operational freedom and climate of professionalism that is part of its culture. Dr. Reddy's laboratories are making rapid strikes through a solid R&D base. The Tata group remains the Fountainhead of professionalism and Corporate ethics as everything is so professionally done.
The Tata Consultancy Services (TCS) is India's largest software exporter. The group itself is so professional that it keeps re-inventing itself so often. Similarly, Shri Narayana Murthy of Infosys Technologies made it a globally competitive organization through very intelligent strategies centered around building world-class competencies. For instance, it is a superb organization when it comes to dealing with software solutions for the banking sector. There are dedicated teams and the kind of expertise they bring in is best on a global basis.
These are the kinds of organizations that have made the New India. The New Corporate India, making massive contributions to the Indian economy as well. The TVS group of Chennai can challenge any organization in the same business. They are very competitive and can indeed contribute to the New India of global competitiveness. The New India that is famous for quality products. The kind of professionalism will extend to every aspect of Management and not be limited to mere production processes. And "Made in India" will never be a problem at all. For example. Brakes India from the TVS group has a Foundry has exports castings to all auto majors around the world. Mahindra and Mahindra sell its tractors in the US.
A massive number of US companies have been purchased by many Indian companies across the industries. This trend will continue.
Emergence of totally new markets related to global developmentsFlip kart the most well-known name in the online marketing space has been sold to Wal-Mart. One is not sure how the latter will roll out its world famous " Low prices everyday " model. The employee Costs will be sought to be controlled through contract labor and none of the Governments in any State will ever create a law to get these poor unfortunate souls and their jobs into regular ones. In fact, a progressively pro-capitalist stance that sort of justifies the "hire and fire" syndrome will continue everywhere in India.
It is not just organized retail. Take the Ola Car business. The company merely enrolls the car owners and makes them part of the so-called System. The more the driver keeps on driving to different destinations, he or she stands to make money. But the owner-driver is not covered under PF and has no gratuity. Those who do not satisfy customers are sent of the System. Hence, while the customer is benefited through low prices, the owner-drivers are not happy.
This is the New India. The upper middle class and the rich are very happy that a whole range of new services have now arrived to help them live comfortable lives. But the employees who get the job done are never happy. The ramifications may be severe as the Associations of such exploited people will start becoming strong. The exploited individuals in most such businesses are frustrated. Those with just a very ordinary graduate degree and knowledge of the local language work for rupees seven thousand per month, doing the basic job of calling hundreds of thousands of customers, prodding them to buy credit cards, debit cards, personal loans and what have you. They even represent the huge monopoly called LIC. Yet, there is no regular employment. Everything is on contract. There will be no employee who will ever aspire to get gratuity at any point in time. For he or she, is very unlikely to be in the same organization for even five years. Even if they are in regular jobs.
Caterers who can access the internet to supply food to specific online customers will happily laugh all the way to the bank. The bankers are on their toes. Hundreds of them even visit the families to canvass for deposits. These trends will continue. The New shopping malls, the multiplexes, organic food restaurants, home medical care and guys who provide A to Z services in the big metros will continue. This is likely to multiply by a factor of twenty in just ten years. Hundreds of new businesses will easily emerge everywhere.
Massive expansion of B schoolsToday, there are some 4000 B schools in India. Even the number of IIMs have multiplied manifold. There has been a massive explosion of new courses in Management and the number of Management professionals is so huge that there are hundreds of thousands of them available to man any position at any point in time. This trend is now visible even in the smallest of towns, where the MBAs from the lesser known B schools take up jobs in the smaller FMCG companies and are engaged in marketing such products through local distribution channels like small retailers and also do a massive amount of research in terms of purchase trends, customer feedback and so on.
This trend will continue and the co-existence of so many B schools with different standards will also continue. Simultaneously, the number of part-time MBA courses that will cater to those who are already employed, will also explode and will survive and grow in the bigger cities and metros where it is relatively easy to rope in practical managers as Faculty Members. The weekend MBA courses will also explode.
The massive number of new markets all over IndiaThere is nothing called a "local" product as far as the bigger brands are concerned. The Tiger brand of biscuits from Britannia, for example, is the largest selling brands that are sold like hot cakes, throughout India. The new markets for such products will simply explode. This will mean a massive emphasis on Supply Chain Management and will enable a huge number of such companies to emerge everywhere.
Similarly, the massive variety of online services bringing a very vast number of products to the homes of millions of Indians will become an entirely new business. Yes, online shopping will open up new markets even in the smallest of towns.
The next wave is likely to even penetrate villages with a population of just eighty thousand. The sophistication of customers in terms of aspiring for branded products will open up new markets everywhere in India. The discerning customer is now ready to pay extra for the premium products even in the smallest of villages. The grooming industry, for example, is now of the fastest growing industries in the service sector. The younger generation will enter the service sector like never before. There will be a massive expansion of the food sector everywhere. The mini supermarkets will spring up everywhere. The Corporate Companies manufacturing a whole range of goods consumed by the younger generation will be made available through such mini supermarkets.
Designer kitchens are one example. Even in the very small towns, we find houses fitted with the latest designer kitchens. The branded restaurants will be situated at a distance of fewer than fifteen kilometers from a cluster of some twenty villages. Apart from the floating population, the educated from these same villages will also flock to such restaurants. There will be special consumer durable products manufactured to cater to different customer segments.
ConclusionThe New Corporate India will innovate to capture the entire country as one single market. The aforesaid discussion might as well form the template for the manufacture and distribution of a huge range of products and services. The manufacturing industries will keep on innovating with new products. The scope is very huge. And there will be a lot of excitement as well.
It is truly said, "Man proposes, God disposes". Whatever be our planning or preparation, an act of God or nature is enough to shatter all that. In that context, it can be said that many specifics given in this article, written about a year back, may not hold good as a set pattern forever and only some general basics may come to use.
Unfortunately, now the world is going through such a situation. The world is under the grip of the Pandemic Covid19. While many countries, including India, were on a good growth trajectory, suddenly this pandemic struck. Now there is only the talk of recession, revival package etc. The growth plans do not hold now. Everything went haywire. They have to be reworked.
Consumption pattern changed. But a crisis also throws new opportunities. Researchers and scientists now are engaged in finding new medicines and new vaccine to Covid19. Many companies have started producing masks, sanitisers, PPEs, test kits, immunity enhancing nutraceuticals etc. The workstyle has changed. There is a large proportion of work done from home. Internet and data usage at homes has increased. Due to lockdown, fuel consumption has dipped and there is an oil surplus. There is a crisis in oil-producing countries.
While doomsayers project only 0.8% growth post-Covid in India, the government has laid emphasis on "self-sustenance' "local going global" etc. So we can expect a good opportunity for Indian manufacturing and Indian products. The Finance Minister has announced a liquidity package of twenty lakh crore rupees which is about ten per cent of the country's GDP that is focused on the Medium, Small and Micro sectors of industry and service. If properly used and implemented that is going to give very good growth to the country's economy in less than two years. The revising of investment and turnover criteria for these sectors will shift focus and growth from large corporates to the medium and small sector. That will form a stable base for speedy growth and taking the country to a lead position.