Dhirtrashtra Model 2006 – ET award to top thug of India
Friends,
Last Saturday was the worst day in recent India history. India's undisputed top thug Mukesh Ambani was awarded ET award for "Corporate Excellence".
I was completely shocked and depressed for hours to see how our Prime Minister with team of most incompetent juniors could fall to such a low level.
Our founding fathers ages ago in holy book Mahabharat predicted that Dhirtrashtras would rule us through ages. Dhirtrashtra was supposed to be only blind but 2006 Model is deaf and dumb also.
Mahabharat explained how under blind Dhirtrashtra a great kingdom was completely destroyed. India has tolerated all mischief of Ambani family.
Friends, battle as I see it is exactly similar to the Mahabharat, some hundred corporate under Mukesh Ambani as Duryodhan the crook is taking on few like Raj Babbar but with entire public support behind. In this 2006 version of Mahabharat we have Gandhari also who shall open her eyes when the battle will go into final phase of no return. Role of Krishna goes to WTO that will ensure the battle is fast and furious. (It is basically Corporate v/s People and people shall eventually prevail. Chirharan in farmer's suicides is indicative of the inevitable battle and Dhirtrashtra's complete ignorance)
2006 model of Dhirtrashtra Manmohan Singh is blind for he never read that Mukesh Ambani has shut down Reliance Petroleum petrol pumps that employed 50,000 people compared to just 12,000 by rest of Reliance group.
He also didn't read that Mukesh Ambani had backed out on contracts to supply CNG gas to gas based power plants of over 15,000 MW rating to his own brother Anil Ambani and Government owned NTPC. Had they been executed as per schedule there may not have been any power shortage in near future.
2006 Model didn't bother to ascertain why "Gas Wells" owned by Mukesh Ambanis couldn't be commissioned in four years. He also failed in securing contracts with Bangladesh, Myanmar and Iran for gas supply, which is cheaper fuel essential for development, thus these gas wells were of strategic importance also from fuel security point of view.
2006 Model could neither see nor hear nor speak about the acute power crisis in the country.
2006 Model was neither told nor read nor speak about the gas pipeline connects Krishna Godavri wells to Mukesh Ambanis Reliance Petro-Chemical complex not to Dadri or NTPC power projects where it is required on first priority.
Even for "Sabzi" business or "SEZs" Reliance corrupted state governments to dole out 1,00,000 acres of farmer's at most expensive locations almost free.
He didn't see or hear or spoke about why pipeline contract went to a Chinese company? And Chinese labor shall execute the contract.
But people who are blind, deaf and dumb don't have any shame or self esteem.
Didn't our top industrial group operating in Petro-Chemical business for decades is skilled enough to lay even pipeline? Obviously son of a petrol pump attendant could never even dream in day time to own a petrol pump through honest means sure could not be expected to develop refining technologies and plants and machinery.
When present generation of engineers and entrepreneurs are dreaming of conquering the world, Fortune 500 India company will be selling "Vegetables."
2006 Model was so delighted that he personally congratulated mother of Mukesh Ambani for giving India such illustrious sons (Anil also) for transferring all the genes of her husband in them.
What a delightful show, thousands in the crowd assembled for the event didn't, put together, account for 0.2% of world's exports in value addition terms for 17% population.
Farmers, fishermen, craftsmen who contribute bulk of the exports were obviously not invited.
2006 Model however is so bullish that he predicts India shall overtake even USA when to lay a pipeline India need Chinese expertise- USA has gas pipelines for a century.
Fortune 500 company of Mukesh will sell "Vegetables" so Indian GDP shall overtake USA, China, Germany, France, Italy ---------. What a dream of 2006 Model.
Entire corporate sector that contributes just 0.2% in value addition terms to global exports even after third or fourth generation in business need not pay any taxes to compete globally, need not conform to any labor laws and need not be governed by most national laws.
Corporate don't need any of our millions of bureaucrats, don't even Sonia Gandhi or any politician but they want to drain out all of India's capital resources, contributing nothing. More than $400b is advanced to corporate already that yield very little return.
Problem with 2006 Model is that when he delightfully promotes first Fortunate 500 Sabzi Company, entire corporate suddenly finds gold mine in Sabzi business and rush to it leaving behind everything.
Had I been the PM people like Mukesh wouldn't have dared to do a single mischief, would have required to wear elephant size diapers even to go any where near South Block.
Any summons to him to explain why he had backed out on contracts to supply gas to NTPC, owned by GOI would have made him rush to get admitted in dysentery ward of the nearest nursing home. Tax concessions to Reliance were given for serving Indian market and generating employment. But Model 2006 specifically went to Mumbai to give away the prize bought for money than any merit.
2006 Model gets advise from Fortune 500 Sabzi Company on development issues which is insulting to Oxford also.
Friends, due to Nalayak PM and his incompetent team promoting thugs like Mukesh unashamedly, Loot and Cheating is getting government patronage which will erode Indian economy at a time when hundreds of nations are all getting smarter and efficient, our corporate is lured in to "Sabzi" business or the like.
In the process corporate is going out of the tax net and poor and middle class is squeezed hard for more taxes even as public services are in compete neglect.
2006 Model doesn't talk of development of globally competitive technologies. Gone are the days when Sony or Phillips were leaders of electronics industry, presently there are thousands of leaders in electronics worldwide spread all over the world competing for Indian market.
2006 Model didn't see that Super Markets retail 80% of consumer goods but here Dhirtrashtra version called "Shopping Malls" are coming up that only adds to cost of retailing and India becoming vulnerable to Wal-Mart and other giants. Wal-Mart's entry is inevitable that promises to buy direct from producers and selling to consumers. All kinds of gimmicks shall fail against global retail players.
Remedy is to invest in technologies and prepare for competition. Empower our engineers and inventors to prepare for the challenge but promoting "Sabzi" and "SEZs" will in fact advance the fall of Indian economy.
I am not trying to remove the blindfolds of Manmohan Singh, he is a rotten brain and we must throw out all 60 plus politicians and bureaucrats.
When average Indian is under 25 years of age why we need junks of over 60 to 70 to even 81 years in MS Swaminathan.
Ravinder Singh October10, 2006
Inventor & Engineer
Indian tycoon plans a revolution
The country's richest man plans a transformation by building new cities, writes Dean Nelson from Mumbai
SITTING in his Mumbai office, Mukesh Ambani, India's most powerful businessman and the world's 38th richest man, is in a relaxed mood.
Tesco, Wal-Mart and other western giants might be squaring up for a fight with his Reliance group for the Indian retail market, but he seems unconcerned.
But there is more than bravado in his attitude. In the past year he has survived a painful break with his younger brother, Anil, in which the Reliance business empire was divided. Mukesh lost the Reliance Infocomm mobile- phone giant he created, but he emerged stronger from the split.
His Reliance Industries is now India's largest company, with a market value of more than $35 billion (£19 billion). The company's share price has risen 15% since the split in January, and his plans for a social and business revolution in India's two biggest cities and their agricultural hinterlands have the blessing of a government that sees him as a favourite son.
Ambani's plans to establish a $5 billion subcontinent-wide chain of supermarkets are ambitious enough — he wants to have 784 branches in India's smaller cities before opening in the 10 biggest metropolises. But they hide the real scale of his vision. He wants to build a demonstration model of what India could be like and start a revolution in the relationship between its cities and the countryside.
Ambani is creating two new cities, each with 5m people, on the outskirts of Delhi and Mum- bai. The $11 billion schemes will have reliable power supplies, railways, modern schools and hospitals, sewerage systems, and thousands of new jobs provided by foreign investors and manufacturers — things that many of India's dirty, smelly and chaotic cities lack.
He said the country's finest fruit and food produce will be supplied to his Reliance supermarkets from 1,600 new farm centres. This, he believes, will wean India's farmers away from their overloaded bullock carts and draw them into a new and better-paid relationship with 21st-century technology.
At the moment, Ambani has a clear run while the government keeps retail giants such as Tesco, Wal-Mart and Carrefour waiting to enter the country. But, in an interview with The Sunday Times, he explained why he believed the British and American supermarkets could help fulfil his broader vision for India.
"Companies like Tesco and Wal-Mart would contribute to this economy hugely and keep local companies on their toes. We should welcome Tesco because it's good for competition, and that's good for Reliance. Every company has a home market and a foreign market. We're in India, so we don't need any (help from) regulation to get a head start. Tesco would add value to India. Foreign direct investment should be open," he said.
Ambani believes his retail venture can generate $25 billion in annual sales and 1m new jobs by 2011 by training farmers to use new machinery and information technology.
The current picture of Indian agriculture is bleak. Debt-ridden farmers are committing financial suicide because half their crops rot before reaching the market. Excessive layers of middle-men, pot-holed roads and a shortage of refrigerated trucks conspire against farmers and consumers, who pay higher prices for rotting vegetables.
"India's food industry is not organised. There's a limited shelf life. The losses from moving between farm and store are between 30% and 50% and if farmers can't sell, they lose everything. The challenge is to cut that out."
Part of his strategy will involve bypassing India's ground transport altogether — he has bought a fleet of aircraft to fly fresh fruit and produce to supermarkets from remote farms where poor roads would mean they perish before reaching the market.
The supermarket and farming ventures will be based on the business model Ambani pioneered at Reliance Infocomm, the telecoms company he launched in 2002. Within three years, it had laid 80,000km of fibre-optic cable, and captured 25m customers by offering £6 mobile phones and cutting call charges from 20p a minute to less than 0.5p.
According to Ambani, the model emerged from the approach of his father Dhirubhai, who started a textiles company with $1,000 he had saved as a teenager working as a petrol-pump attendant in the Gulf in the 1950s. The company grew rapidly, before Dhirubhai decided to gamble on India's poor. He opened a polyester plant with a capacity of 10,000 tonnes when India's demand was only 6,000 tonnes, saying he believed "polyester is the fabric that will enable Indians to clothe themselves". Reliance is now the world's largest polyester producer.
The company expanded into plastics, petrochemicals and oil refining. It is currently developing the world's largest refinery next to its existing plant at Jamnagar in Gujarat.
Dhirubhai also played a pioneering role in developing India's capital markets when he launched an initial public offer and drew thousands of first-time investors into the company as shareholders.
His death in 2002 led to the bitter public feud between the two Ambani brothers, and the eventual division of the group earlier this year. Both Anil and Mukesh revere his memory, and at Mukesh's Mumbai headquarters, his garlanded portrait peers down from almost every wall.
It was Dhirubhai who developed his eldest son's talent for creating infrastructure projects from nothing when he asked him to return from his MBA studies at Stanford University to build a series of polyester component factories. In 1999, Mukesh sealed his reputation as India's leading project manager when he led 85,000 staff to complete the country's biggest oil refinery in just two years, while keeping construction costs 30% lower than BP's similar-sized refinery in Malaysia.
According to friends, his secret lies in delegation, but he also spent several nights a week sleeping on site in a steel container, learning the oil business by watching training videos during his morning workout.
There is no doubting Ambani's business acumen, but he describes Reliance's achievements and mission more like a government minister.
"Reliance is an Indian phenomenon — we have to do whatever we can as a catalyst for the promotion of millions of Indians," he said. "The other thing we have to ask is: What are the challenges for India? How do we bring the full participation of the educated unemployed who are not technically qualified? "The qualified get sucked up by the biotech and IT sectors, but the vast majority are educated but unable to find employment. How can we develop a business model where we can contribute to meeting these challenges?" But his new cities will be the ultimate test of his political and business judgments and of his skills at project management. The cities are among 181 special economic zones approved by the Indian government to attract foreign investors with tax-free leases and low operating costs.
Reliance has been granted a 150 sq km zone on the edge of Mumbai, and another outside Delhi, for the cities, which are inspired by Shenzhen, China's pioneering special economic zone, which began as a satellite of Guangzhou and is now a city the size of London.
Ambani's vision is of global manufacturers such as Nike or Sony creating thousands of jobs, or universities like Stanford or MIT setting up research units, or JP Morgan creating its own mini-city to house its back-office operations.
"In India, what do we have? A large amount of talent. Our biggest challenge is to grow with globalisation. We have 20m young people coming into the workforce every year. We have people, goods and services. What we do not have is integrated infrastructure.
The model I am creating is employment-led. If we can create 5m jobs over the next five years giving $5,000 per capita where the world would pay $15,000, then we give the employer a $10,000 advantage.
"Can we supply the power and infrastructure to create goods and financial services? When we can say that we can, we will be able to attract Nike to make shoes, or Sony and Samsung to make television sets. We believe we can create a quality of life where our brightest people do not have to go to Britain and America."
Ambani believes India must learn from China, but retains a demographic advantage over its neighbour, where families can have only one child.
"It will become old before it becomes rich. India will get rich before it gets old," he said.
Family feud
· Reliance group was founded by Dhirubhai Ambani half a century ago.
· Ambani died in 2002 without leaving a will, starting a feud between his sons Anil and Mukesh.
· Anil alleged that Mukesh seized control of all but two junior subsidiaries of the company without legal backing.
· In 2005 Ambani's widow brokered a settlement between the two brothers. Mukesh kept control of Reliance Industries while four companies were demerged to Anil Dhirubhai Ambani Group, (Adag).
· In 2006 Anil was handed Reliance Natural Resources, Reliance Communications Ventures, Reliance Energy Ventures and Reliance Capital Ventures.
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