concentrates in few hands than

margins themselves could rise.

And more of concern of some intellectuals is consequence of growing presence and rising market share of these global giants. The power of this chain has been amply illustrated in other context where they have been in operation with a deep pocket and international sourcing capabilities they exploit economics in procurement, storage and distribution to compete and displace domestic intermediaries in supply chain. And it may cause and change in supply chain and generate more unemployment because local vendors and kirana stores could lose their importance and can’t

sustain against them.

National sample survey organization survey of employment and unemployment 2009-10 the service sector including wholesale sector provide 44 million jobs the total workforce 459 million. 26 million are locating in urban (as stores may locate in urban area) area. And Move will lead to large scale in unemployment and we have burning example of US and Europe and south East Asia, and main cause is same, displacement of local kirana stores and break in supply chain. And data says India has the highest shopping density in the world with 11 shops per 1000 people, it has 1.2 crore shops employing over 4 crore people, 95% of these are small shops run by self employed

of industry, but they are much

better than us. We can see the

difference not just in their

livelihood but in technology. But

beside that even if there is a

bumper crop, we can’t see reason

as to why farmers are financially

backward? Reason is MIDDDLE

MAN. Farmers are getting so low

that they even not in a situation

to buy bread and butter, so how

can they return their loans which

they took to improve the

production? And in similar

situation where a middle class

which has a limited income is

struggling to survive in a high

inflation, which is somewhere

curtailing there purchasing

power. And it is also directly and

indirectly hitting the

consumption prosperity and

saving. Which is more and less

affecting GDP growth?

FDI in retail would help in

smooth out the middle men, but

once these smaller middlemen

are displaces by the large firms, it

may play the same role of

middlemen it may create a

monopoly and break in supply

chain (a reason for

unemployment). Dependency on

these giant middle men may

cause the irregularity in payment

and more capital investment by

these firm may cause less use of

man power, second they can buy

product from any were from the

globe. And once the retailer trade

It will generate more cash inflow and must help to curb the inflation. It will usher and would give a backup to expansion plans, and help in new options for economy. Experts have diverse views; it will cost more than what actually we would get. Uproar is not about every sector but for retail sector, and now government decision on FDI in

multi brand stores is on hold.

Why there is havoc when INDIA already has number of sectors where FDI is permissible? Reason, till date government allowed FDI in limited sectors where heavy investment is required also generating more employment. But prospective in this specific sector is different (economically, geographically, and culturally). However, retail sector in INDIA is important, not just because of different demand but because of market (number of buyers) opportunities. Investors are keen to invest in this sector as we have number of example in single brand stores. Indian business houses are also showing the same respect for FDI in multi brand retail stores. But there are two different views; first people are concern about the unemployment which could arise because of these stores and second this may give chance for big companies to intervene in

Indian economy.

India is still an agricultural

economy but when we compare

our farmers to some western

countries, then we find a drab

and speculative situation, though

they are focusing on third sector

FDI(FOREIGN DIRECT INVESTMENT OR FOREIGN DIRECT INTERVENTION )

Inside this issue:

Corporate Speaks 2

News Bits 3

China 3

About Us 4

January 2012

Volume 1, Issue 7 MI`Bytes BUSINESS LETTER

Mr. Bharat Bhushan

DGM-HR

Mitsui India Mitsui India is a Japanese trading company, which deals in various sectors; Mr. Bharat Bhushan has been at the helm of activities of HR in Mitsui for over 9 years now, coming from an Air Force background, where he was head of administration department. First of all I want to thank you sir from entire team of publication for taking your

precious time for giving interview

Q1: You have led teams in Asia-Pacific and SAARC, how the training needs of

employees are identified A: We have classified training to develop personal competencies and training to

develop professional competencies. As far as professional competencies matter they are

derived from organizational goal and for personal competencies it is based on his job

profile.

Q2: Important and Interesting work is available for HR personnel to make

significant contribution to the business, by making 10% of organization 5%

better. Your comments A: Every organization works like a machine, even if its smallest part doesn’t work

correctly or accurately then entire machine work goes wrong. So if you are going to

make 10% of organization 5% or 15% better will not work. It not really correct to

distinguish, some people are higher performer some are not. Yes, we should look that

way that 10% of organization 5% better, then you may have classes or groups in a

company which is not a good sign for any organization.

Q3: Do you think organization brand is an important factor that attracts job

seekers or has became a culture of commercial positioning. A: Yes, organizational brand is an important factor. For instance you take education

institution, if you are from a reputed education institution your market value is much

better, basically it is elimination process to make hiring process.

Q4: What are the newer roles of HR manager in today’s era?

A: Improvement is a continuous process and in HR also many new things are coming

up like outsourcing: it is coming in a big way, not only this brand identity and

boundary less organization and also new roles and trends for HR dept. and even

retaining and producing best product in era of immense competition policies

improvements.

Q5: You have been HR manager for such a long time what changes you see in

activities performed by HR manager. A: Well thing have changed, HR is now more oriented towards main activities of

companies. HR is not a compartmentalized function, it is an important function and

that is why now a day business manager is now called HR business partners.

Q6: Advise for MIB student from JMI. A: There is no short cut to success, expect hard work. Try to do better than others and

CORPORATE SPEAK

“ROLE OF HR IS EVER

CHANGING ”

MI`Bytes Page 2

“100 of the Fortune 500

companies have R&D in

India ”

“India is among 4 countries

that make Supercomputers”

Time magazine in its November ’09 issue carried a story emphasizing five things which America should learn from China. The Americans are known for their brashness and high headedness and an American magazine coming with a story like this acknowledges that they need to learn from someone who is proving to have equal mettle as them. It has been 27 months since the fall of Lehman brothers in Sept 2008, a fall which initiated the global recession. There has been a tectonic change in the global financial equilibrium and world order since then. The most noticeable changes have occurred in the world’s mightiest economy and most populated nation: USA and China respectively. The USA has emerged as a fragile economy after the crisis, its unemployment is on rise, its Fiscal Deficit is huge to the amount of $2 trillion and the economy is not showing the signs of recovery prompting the Fed to unleash QE 2 of $600 billion. Contrary to it, the Chinese dragon has emerged with a fierce fire having impact on Global Geopolitical –Economic situation. The Global recession could not derail the Chinese economy, its huge stimulus package initiated in the wake of economic slowdown of world kept its economy growing at an average rate of 9.2 for the period 2008-10. In this period, it has emerged as the largest exporter in the world displacing Germany, has now largest automobile market displacing USA and overtook Japan as the 2nd largest economy in the world. Its international economic and political clout is on increase, in tandem with its growing foreign exchange reserves-$2.4 trillion till June 2010, more than the economy of India at $1.4 trillion. China is growing by leaps and bound. Economists, policy makers have been awestruck at the pace of growth in the country, thirty years after Deng Xiaoping initiated the economic reforms in country, it has progressed immensely. It has attracted foreign investments to the tune of $500 billion, has become workshop for the world making products ranging from a simple toy to the sophisticated Apple Ipad. Economists have started comparing China with other developed nations of the world, especially USA and other European nations, displacing its comparison with its developing neighbor-India. The term “Chindia” has given way to “Chimerica”.This comparison is justified, Chinese auto companies are vying for the US auto companies. China finances the deficits of USA by buying its treasuries in huge quantities. They supply cheap materials to the consumers which according The Economist has resulted in savings of $1000 for US consumers yearly. The investors were scrounging hard for the newly issued yuan dominated bonds in Hong Kong, establishing the emergence of the China and yuan as the new financial power. In 2009 the consumption of steel by China was twice that of USA, Japan and EU combined and contributed 46% towards global coal consumption in the same year. But China is also facing issues which are detrimental to its path of growth. There is widespread economic disparity in the coastal and inner land China; most of the companies are present on the coastal areas, which more or less follow a capitalist system. The wages are also one of the lowest in the world –one twentieth to the wages in America-which translates in to the lower rung of the society not experiencing the prosperity which others at the top are experiencing. This also results in low domestic consumption, the contribution of consumption to GDP is around 61% compared to 75% of USA. Most of the growth comes from exports making the country highly depended on other economies of the world which consume its products .The recent currency turmoil with America and other developing nations ,crying foul over the under valuation of the Chinese currency –yuan ;the US stopped short of calling it a currency manipulator .The industry setup is also state sponsored ,China has 2000 listed companies and 80 percent of these are state owned, the successful private companies too have the benevolence of the state, which makes the whole system uncompetitive and doesn’t encourage the “Entrepreneurship Environment”. Many economists have termed the fast paced growth in recent years as inflating of an asset bubble which would burst soon and prove disastrous to the growth of the country. China has subtly acknowledged all these problems. Its central bank raised the interest rates recently to keep a check on speculation and also increased regulations to prevent people from buying more than one house; Real estate sector has seen the fastest increase in valuation over the years. It understands that the economic prosperity is the only way to keep its social tensions in a dormant state. In January 2008 it initiated labor reforms which has resulted in 17% increase in wages over the period 2010 .The percolation of prosperity to the workers would result in their growing income, decrease the economic disparity and also increase the consumption level of the country. It has also allowed its currency to appreciate albeit slowly, so that it is not seen as a contributor to the Global imbalances, where some countries experience huge current account surplus like China and some face huge deficits like USA. China is now a global power to reckon with. Its new found ambition is making it eye the abundant resources in Africa so as to fuel the next phase of its growth and the markets of USA, EU along with its own domestic market as the targets for its products. According to Goldman Sachs, China will overtake the U.S in terms of GDP in 2027 and the rate at which it is growing it might be at the knocking distance from becoming the world’s biggest economy earlier than that. America should vigilant; the China dream may replace the celebrated American dream soon.

VIKESH KOUL Associate Researcher, UBS, Hyderabad

“Fixed investment in

China is close to 50%

of GDP”

CHINA– THE FERIOCIOUS DRAGON

Volume 1, Issue 7 Page 3

GUEST COLOUMN

ABOUT US

MI`bytes was started by students en devour to give themselves a

platform to share their analysis and report on business. Produced

by an editorial team known for its quality, innovation. Also we

acknowledge the contributions of executives who run corporate

houses By this we also integrate industry with MIB.

Cont...from page 1

Second important issue and a mistake there is no comparison between INDIA and china, where china is largest supplier for WALMART and an export oriented country where India is a more in agriculture and service. It would be another drawback for INDIA as jobs in manufacturing sector will be lost because structured international retail makes purchases internationally and not from domestic source(in INDIA retailer have to buy 30%

from local market).

But what Indian MNCs think is FDI in multi brand retail will help revive the cash strapped by attracting funds it will help in generating 4 million direct job and 4 to 6 million indirect jobs. Small and medium enterprises will benefit or foreign retail chain will need to source 30% of procurement from them that will give sector tremendous boost. SMEs would increase 298 million from 157 as expert says unorganized sectors are not equipped to deal the increase of

demand and consumption.

Government is also confident that

huge investment in the retail

sector will see a profitable

employment opportunities in

agro processing, marketing,

logistic management, front end

retail and sorting. Farmers may

get a proper price for their crop

as a rid of middle men. FDI in

retail has a policy mandate a

minimum investment of $100

million in cold chain,

refrigeration, transportation,

packing, sorting and processing.

This will help in post harvest

losses. And a strong legal

framework in the form of the

competition commission is

available to deal with any anti

competitive practices, including

predatory pricing.

Story of uproar is not new as every change comes with some side effect and barriers, there are number of example where, while introducing a new low or policy, government got not such a nice and appreciating response. And we can’t say that these protesters are genuine. While this can also harm and hit badly to black market because entry of big companies could make this sector

FDI

Phone: 9891984210, 9871858982

E-mail: sahilbhat_12@yahoomail.com,

soobianahmed@gmail.con

CMS, MIB

EDITOR-IN-CHIEF:

Ass. Prof. SAYED WAJID ALI

STUDENT EDITORS:

SOOBIAN AHMED TULIKA SAIKIA NAMITA DHAMANI

SAHIL BHAT

INTERVIEW BY: SOOBIAN AHMED SAHIL BHAT

aggressively competitive. And we are enough fledged to handle this world, FDI would not convert into

foreign direct Intervention.