Importance of Manufacturing and Does Mindset the real cause for Dismal Condition of Indian Manufacturing!!

Does Mindset is the real cause of Dismal Condition of Indian Manufacturing!! I believe Yes!!

The problem is that “There is too much Distance but too less Displacement” inside any manufacturing company in India.

Here of course I don’t challenge all companies but yes majority.

First we need to understand why “Manufacturing” is major concern and priority for the Govt. of India from last many years.

It is contributing somewhere around 15 – 16% of GDP in last few years against the target of at least making it to 25% under National Manufacturing Policy.

Why the Govt. wants to achieve this. Why simply we don’t focus on Service Industry which is already contributing healthy >50% of GDP in India. Whereas in China Mfg. is contributing 50% of their GDP.

So why we not simply leave it to Market Forces and let it be driven by pure business interests or environment.

Why Govt. wants to intervene and push Mfg. in India.

Long time back when Industrialization happened in UK and USA, a large Middle Class emerged out of it.

First Service Sector still is unable to absorb illiterate population or low education class. Which Mfg. absorbs.

One direct job in Mfg. can create 5-10 indirect jobs which mostly consists of labor class.

A country like India has a huge population of this segment which is the bottom of the pyramid.

So it makes huge sense that Mfg. revival will create a large lower middle class population. It can reduce the huge burden of MGNREGA project, etc. Because of Ripple Effect “Creation of Wealth” will happen on pure basis. See where China has gone today.

Now the other important reason qualifies is that no nation can stand on its feet or claim to be super power without ability to make on its own soil. I’m not against outsourcing. But again, a nation, can only feel proud, when it makes lots if not all of critical things on its own. It can be any of Defense, Space, Nuclear, Automobiles, etc.

Now understanding “”Does Mindset is the real cause of Dismal Condition of Indian Manufacturing!!””

Mfg. in India is dismal because of macro issues such as poor infra, poor electricity, port congestion, unskilled workforce, too many laws, govt. interference, lack of single window clearance, etc.

But Does Ever Indian Mfg. Companies Looked Inside Themselves and Analyzed Their Own Mindset. Do They Ever Introspect.

I feel they don’t. And it is really much larger problem instead of blaming every time policies and other issues.

There is Too much Distance and Too less Displacement.

Indian Mfg. companies hardly think Big. They run away from competition. They have inferiority complex.

Why can’t they switch to 5 days or 4 days working culture in order to attract good talent.

Why they come on campus placements always last, to attract the left overs.

Why they offer minimum packages on campus when they also need to work on their own market.

Why don’t they ever have Strategy Departments in their Org. structure.

Why they not encourage neat and clean rather comfortable working conditions.

On Contrast Service Sector aces all these above points. They are front runners in packages, talent hiring, strategy, etc.

Indian Mfg. rarely look at overseas market.

I know many who are reading this blog will not agree. Fair enough. Read below.

How many Brands really do we have on Global Arena. Other than Tata owned Jaguar and Land Rover, we don’t have any single Indian Brand in top 100. Do we ever think on this.

There are few Indian Corporate Houses who are doing really good. Such as Mahindra, Hero, Tata, Royal Enfield, etc.

But they are very few. Why don’t we have Toyota, Ford, Airbus, Boeing, Lock Heed Martin, Volvo, Mercedes, Audi, BMW, Ferrari, Lamborghini, Samsung, Apple, Thyssen Krupp, BAE, Bombardier, Harley Davidson, Louis Vuitton, etc. After all these are all Mfg. companies in different sectors.

I would humble urge to look at Mindset first and start working on Strategy to achieve something Big.

God Bless!!

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The Corporate Maneater

I know this title sounds unusual. Plus the tribe to whom I am going to refer this title is actually doing benevolent to the society.

But here is the catch. The tribe has traits common to man-eater tigers.

Now this tribe is very successful, powerful, ruling the boardrooms, usually at top, they don’t enjoy any second position, they simply can’t be subordinate, they don’t like to address anyone as their boss in the start of their careers, and they are ambitious.

Many times but not always they rise as entrepreneurs.

So why this unusual title to them. Well, many of you might have noticed in Hollywood Vampire movies, that they are assimilated seamlessly in human population. But again they are very powerful, rich, business tycoons, etc.

Why?? Why this is general image of them in movies. It is being shown that they like human blood. Are very clandestine, secretive, and are within a close knit tribe.

So is there any similarity between these successful humanoid vampires and man-eater tigers.

Yes!! Tigers are loners unlike lions which move and attack prey in a group. When tigers become man-eaters.

Its usually believed that old, weak, any accident leading to impairing of any form, when see human in vicinity in the jungle, the hungry tiger attacks and turn man-eater.

Meat eating animals don’t incline towards humans for prey. They generally avoid humans actually.

Only Sharks and Crocodiles move towards humans naturally and see them as food.

The title “The Corporate Maneater” is meant for that special tribe which I talked above.

They see them as top. They want to be at top. They are Tigers. They due to circumstances get the taste of human blood. They continue to live on that for some time. Then they return to natural food habit. But they are dangerous. At the same time later in their lives they acquire more gravity in their personalities, never do anything with human blood again, leave their past long back, and move on to zenith of glory. They can be seen in any fields. Mostly top corporate, top politician, top saint, etc.

Its really surprising that many popular saints in India are initially “dacoits” in their early careers. Same applies with many well known politicians.

However the title is talking about corporate man-eaters. So let me stick to them for now.

Many top corporate tycoons, in which many of that few, rose as entrepreneurs. They were loners just like tigers.

They develop habit of fast success in their start of careers just like tigers because of circumstance take human blood.

They are kind of unproven vampires living among humans.

They are Corporate Maneaters. They are modern now. They look attractive. They don’t do anything illegal.

Here is again a catch. They once or twice do illegal thing. Again because of circumstances. They change. They repent in private. They don’t share it with anyone. Just like in “Chanakya’s Neeti” don’t ever disclose your secret even to your closest ones.

They staunchly follow this.

The famous first line of all time classic Mario Puzo’s “The Godfather”: “”Behind every great fortune there is a crime””.

Note, its talking about “great fortune”. So the title goes like that.

Voting via Internet!!

Why can’t we in India have Voting via Internet or may be through mail services for people living outside their home states??

Isn’t it cumbersome that we still required to take flight or train to go and vote while we are living and doing job in some other state or may be outside India!!

Can’t it be linked with Internet through Govt. of India website. We have Passport, Voter ID cards, etc. then what’s the fuss all about

No Party of India ever speak on this. I really don’t know WHY

Voting Percentage still linger in many states around 60%

In fact the major part of this 60% is people who have never been outside their region

hence their view can be termed as myopic

they get carried away by cheap campaign of local politicians based on caste, creed, religion, etc.

if this percentage can be improved to 90% the additional 30% is having bigger picture in their mind

and they vote more on Growth, Nation, Employment, etc.

And the politicians will be forced to behave better accordingly

Lets hope this may happen in some form or other

Many of you might be surprised to note this that US constitution guarantees citizens Right for Vote and they take it very seriously. Even astronauts going to ISS i.e. International Space Station also gets medium to cast their votes from space

Recently I read in one newspaper that Estonia has enabled Internet Voting and they use technology for betterment of citizens in various domains

We in India also need reforms in this very important front

God Bless!!

The E-Commerce Tsunami

So finally the tsunami of e-commerce has arrived in India

difficult to digest for many, that the young company Flipkart is now valued 6 Billion USD

though its way below than Amazon’s 180 BUSD still its a mind blowing achievement for any nascent start up

and it has started flooding with water the day to day businesses already

What will be the effects of this tsunami

undoubtedly they are going to be immense

recently mobile hand sets majors such as Motorola, Xiomi, etc. has taken exclusive online route only via flipkart, snapdeal, to name few

so you cannot buy through any other option like from any shop in the mall, etc.

and they get sold out in matter of minutes

the working capital is therefore negative

and this is now “pull” instead of “push” model if we refer Supply Chain Management

big savings such as: no real estate cost of shops, manpower in those shops, indirect costs, to name few

Govt. is also having profit from this route as there is no escaping of taxes, stream lining of consumers data

but the effects are way beyond all this

1. its going to encourage INNOVATION like never before

there was one HBR report few months back which said the next decade is going to be ruled by innovation

so how e commerce can effect that

think like this, you make a product in a remote town in your factory, before e commerce the customer set was small, may be in vicinity, or till where you have contacts with distributors. But now when you display the same product on e commerce website, it will reach to millions at one go, and if the product is really good, you might not be able to supply the demand which will come thereafter

2. now the delivery through drones is also under process of becoming reality

which will again spur the growth like never before

Amazon is talking of this, coming straight from sci-fi movie thing

imagine you are hungry and you want your pizza. of course you can’t wait for next day delivery.

now imagine you want to buy anything and you know it can come within one hour. it will catalyze the whole shopping experience.

3. its not that difficult to imagine that in future things will get changed entirely

big warehouses in cities meeting huge demands through drones, highly efficient, no fuel wastage, no inventory, etc.

even the buzzing and guzzling malls may also face decline in shopping trends

4. The Big Benefit coming is also on Inventory Holdings

lots of manufacturing units which today sits on huge stacks of inventory of finished goods will be able to deplete their stocks much faster through discounts on e commerce websites

5. The Govt.s opposition to FDI in retail is also of no use anymore

Initially the big fuss was on allowing Wal Mart, Tesco, Metro, Carrefour, entry into India

small retailers were making hue and cry on their survival. The real threat to them was first from Malls and now from E Commerce.

If I call myself A Futurologist, strategies of the corporate world and government’s public policies need to align themselves very soon with this new trend

Thanks

God Bless!!

The Future is coming with Era of Drones and 3D Printers

In last few months I came across many times use of military drones by USA. Also use of 3D printers in labs.

Now think like this that post military usage the things come in civil use and actually explodes in terms of usage.

The Prime Example is Internet which was meant to be used for file sharing in military initially.

Amazon has recently announced delivery through drones within 30 minutes of your online order.

Similarly Renault has recently displayed in Auto Expo the new concept car which surprisingly has one drone installed on its roof with miscellaneous and adventurous use such as seeing your car from top, seeing traffic from top, etc.

Drones no doubt, are going to be ubiquitous very soon.

Drones are basically kind of helicopters, miniature, and unmanned of course.

But they will soon change the world we know now.

Now comes 3D printers. Again they have current applications in labs, making prototypes, etc.

But imagine, soon giant printers can even print modular floors, picked by giant drones, and a big commercial or residential complex can be erected in a matter of days. The power is so big that its mind blowing. There is minimum wastage, can print complex designs, much difficult to make by any other means.

Why I am writing this, just to express my thoughts. And also I believe that future strategies of organizations need to incorporate these developments in their future projects.

Would love to see any India Org to take lead in making use of Drones and 3D Printers in their business.

God Bless!!

 

 

 

 

 

Is India now ready for Cruiser Bikes

Yes!!

I must say this that now India is Ready for Cruiser Bikes on a much large scale than we can figure out

Think like this. 8 years back Mobiles worth 5k bucks were big thing on hands

Now same 50k bucks also don’t turn heads

Point is that we all have moved on very quickly

Now Indians want more

And hence it make big sense that Cruiser Bikes can be a big hit in near future

Of course International biggies such as HD, Indian, Triumph, have already identified this

Now isn’t this is the time for Indian biggies

Rather I would love if any Indian Company challenge these brands in their market too

Lets see how it goes!!!!

 

The Three Strategies

From last few weeks

I am working on three strategies which I found very useful for the companies focusing on turnaround besides my favorite The Resilience Strategy

They are:

Mango and Weeds Strategy

Iron Man Suite Strategy

The Toothpaste Strategy

In my next few blogs I will surely elaborate on this

Since then Happy Reading

God Bless!!