Volume 3 , Issue 1

January 2014

Page 2

Corporate Social Responsibility
Cont…..from Page 1
making profit led to creation of many laws to constraint
their ...
Page 3
Cont…..from Page 1

Ques 3: Which are Amira’s potential markets for Indian Rice, apart from MENA (Middle East
Page 4

Masters of International Business,
Centre for Management Studies,
Jamia Millia Islamia
E-mail: Suban.ajam@gmail.co...
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Mi'bytes jan 2014


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Mi’bytes is a monthly news letter of the MIB family of Jamia MIllia Islamia, Central University. It is the intellectual output consists of business articles, interviews of the corporate personalities, experiences in the corporate field, quotes and many more. It gives rich dividends of knowledge and information. This newsletter carries an eclectic mix of business related topics and exposure of the corporate world. It is the step from the students of MIB that have transverse another inch in their triumph. Mi’bytes gives an enriching experience and helps the students in overall learning and contributing articles for it.

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Mi'bytes jan 2014

  1. 1. Volume 3 , Issue 1 January 2014 IN THIS ISSUE: CORPORATE SOCIAL RESPONSIBILTY ...……….……….1 BITCOIN: LATEST GLOBAL CURRENCY………….………1 CORPORATE SPEAK ……………………….……...1 COMPANIES’ OVERVIEW…………………….…….. 3 QUOTE FOR THE MONTH…………………. ……….4 Masters of International Business , Centre for Management Studies , JAMIA MILLIA ISLAMIA Corporate Social Responsibility Business persons have always been concerned with their own profits, but huge pressure from society has forced them to sit and think about their means of profits as well. The need of the day is genuine business responsibility and societal trust in business. In earlier days the organizations were having a common thinking that “the business of business must be only business, the rest was none of their business”. Many of US based Business Corporation has made huge profits for their owners in 20 th century and some have created trust in their name through philanthropy. . But the damage that these companies had done to the environment and community in course of Cont….on page 2 Bitcoin: Latest Global Currency CORPORATE SPEAK An introduction Bitcoin is a digital currency created by Satoshi Nakamoto. Bitcoin was conceived in Japan in 2008 but it became operational in 2009, similar to wallet on some e- commerce website which can be used to purchase goods online. It is a crypto currency because it uses cryptography to control the creation and transfer of money. Advantages Low transaction fee (almost zero) versus transaction fees (2-4%) charged by credit card companies and anonymity led to rising Cont...on Page 4 Executive Director Amira Foods (Delhi) Mr. Manish Tandon Ques 1: What all are the challenges/opportunities that volatility in rupee has presented to you? Ans: That’s a very interesting question, see as far as Indian exports are concerned it is definitely an opportunity because the realisation of dollars is higher. I would say opportunities are immense when it comes to dollar crossing over a certain limit, we become more competitive. The moment dollar crosses threshold, opportunities are there for the exporters and people have tapped it. Cont….on Page 2
  2. 2. Page 2 Corporate Social Responsibility Cont…..from Page 1 making profit led to creation of many laws to constraint their conduct. Douglas C North received the Nobel Prize in economics in 1993 for his work on the development of institutions and their role in human progress. He defined institutions as the “humanly derived constraints that structure political, economic and social interactions. Constraints, he said, are derived as formal rules including constitution, laws, property rights and informal restraints include sanctions, taboos, traditions and codes of conduct. There is definitely some force driving political and economic institutions in 21 st century. This storm has been caused by recent collision of many forces which are strengthening with time. They are open market system democracy and principle to human rights, the growing awareness towards the usage of earth to expand economies and availability of information to people everywhere through advancing means of communications. The new Indian Company Law that received the President’s assent includes novel provision which made it compulsory that companies should spend 2% of their profit on corporate social responsibility. However there is a buzz about matters of details, such as what will include genuine CSR expenditure and how and who will certify it. Whereas we must examine the effect this expenditure of 2% of profits will have on the direction we want the business to take, the improvement of genuine business responsibility and societal trust in business. But it is an implementation nightmare with no proper enforcement mechanism. Only minimum requirement are prescribed and the actual implementation of the policy is left to the company itself. The bill does not seek to implement or enforce the CSR policies of individual companies to monitor and regulate the activities under it. CSR policies and reports are usually designed to inform investors, shareholders and other stakeholders about the social and environmental performance and philosophy of a company rather than to satisfy government scrutiny. The fear is that so called CSR may enjoy greater legitimacy and state support with this bill. CSR as imagined in the bill is ineffective without corporate accountability. There are as many CSR policies as many companies i.e. if a company is spending on educational institutions to safeguard the interest of beneficiaries of such projects, the content and quality of curriculum, assessment and improvement have to be insured. It is well known that it is not in the DNA of the companies to altruistic. If companies engage in CSR activities it is usually in pursuit of short term or long term benefits. Growing corporate interventions over economic and political affairs has led to some critical social issues of today and it may be prudent to avoid such influence in social policies even under the garb of CSR. By-Tabish Md Jan 1st Year MIB,JMI Cont….from page 1 As far as challenges are concerned, this volatility is not good. You can make temporary profits but if you are talking in general looking at the top, in the long term it’s not conducive for trade. This situation definitely impacts Indian economy and it is not good for the country. If you specifically talk about exports it might give a monetary gain but overall i think if the currency is stable exporter are more focused and certain in their working, allowing them to make long term and medium term decisions. Ques 2: In today’s competitive market, how do you maintain your share of global trade, as Pakistan and Vietnam are providing the same commodity at a competitive price? Ans: India has a soil structure which gives you better length on your basmati plus the disadvantage with Pakistan is the technology. Their technology know-how is not so strong, when I am saying this I am specifically referring to parboiled (Partially boiled in the husk) rice if you compare their parboiling structure. Normally in the European market or in United States or United Kingdom i.e. in the developed world where basmati is most consumed, Pakistani basmati is not very well accepted as aflatoxin levels are normally higher because most of their plants don’t have proper driers. Indian basmati is preferred worldwide. If you go to the international market and you talk about Indian basmati it will be preferred because of its quality.
  3. 3. Page 3 Cont…..from Page 1 Ques 3: Which are Amira’s potential markets for Indian Rice, apart from MENA (Middle East North Africa) region (where Indian rice is widely accepted)? Ans: MENA region, if you focus more on Middle East it’s the chunk which goes. Iran is the highest and biggest importers of rice they touched 1 million tonnes of import only from India. Saudi Arabia is the second close to about 640-650 thousand tonne of imports and UAE is third. Except this, basmati is consumed mainly in the United States and United Kingdom market, which is basically the developed world. So these are the other potential markets. United States and United Kingdom are premium end basmati consumers and a lot of volume is flowing from India. Ques 4: How do you position your packed rice in the domestic and international market against your competitors? Ans: When you say Amira, you talk about quality. Our positioning is on the top end, it’s a luxury premium brand. Even at small retail stores you will find our rice offers you the best quality best price and it is top notch product. Now trend is changing people have more spending power, they are willing to spend more on their food and Amira is giving them value for money. Once you taste a product which is superior automatically sales would come in. We are focusing on marketing part-domestic as well as international. Quality will sell; people will come back and buy. Ques5: Do you think that the government policies are conducive and supportive for the rice industry or there is a need for reforms? Ans: The only point i can say here is that Indian government has to be more stable. So far the government policy has supported and promoted the export of basmati. Ques 6: What will be the impact of FSB (food security bill) on the domestic and international trade of rice? Ans: FSB is not going to impact normal trade or the exports of basmati rice, not at all. I think it won’t have any impact on Amira selling the rice or any other company selling the rice in the domestic or international market. Ques 7: what are the basic qualities a person should have to excel in international trade? Ans: ( laughs)..... the most important thing is to be focused. International trade is very technical in the sense that it requires a lot of knowledge on documentation, logistics, government schemes and benefits which you get out of exports. so off course you have to be well prepared and learn these things. The most important thing is to be focused in life in whatever you do be it international trade or any other trade. Ques 8: What will be your message/advice to international business students at Jamia Millia Islamia? Ans: What I can say is that whatever you do don’t lose your concentration. You need to know where your strength lies and you need to work on your strength. Identify your strengths work on them try and improve. Rather than master of all you become jack of none. If you want to excel you need to be thoroughly knowledgeable about lines which you are choosing do that and Insha’Allah I am sure you will reach wherever you want to be. About Amira Foods AMIRA group was founded in 1915, Amira has evolved into a leading global provider of packaged Indian specialty rice, with sales in over 40 countries today. Amira Foods generate the majority of the revenue through the sale of Basmati rice, a premium long-grain basmati rice grown only in certain regions of the Indian sub-continent, under Amira flagship Amira brand as well as under other third party brands. Amira Foods fourth generation leadership has leveraged nearly a century of experience to take the Amira brand global in recent years. Amira Foods recently launched new lines of Amira branded products, such as readyto-eat snacks, to complement Amira Foods packaged rice offerings, and we also sell bulk commodities to large international and regional trading firms. ———————
  4. 4. Page 4 Masters of International Business, Centre for Management Studies, Jamia Millia Islamia E-mail: Suban.ajam@gmail.com, habib.siddiqui100@gmail.com, 9650430820,8285817199 Quote For The Month “The brave may not live forever, but the cautious do not live at all!" Richard Branson Founder Virgin Group Bitcoin: Latest Global Currency Cont…..from Page 1 EDITOR-IN-CHIEF: MS.SUNAYANA KUMAR Assistant Professor. CMS, JMI STUDENT EDITORS: Michael Akbar Habib Ullah Siddiqui Suban Khalique Ajam INTERVIEWED BY: Suban Khalique Ajam Uddipan Sharma CONCEPT AND DESIGN: Samik Sarkar WEBSITE DESIGNER: Mohd Ibrahim Badar China. BTC China capitalised this opportunity and met the demand thereby becoming the world’s largest bitcoin exchange. BTC China handled around 1/3 of world’s bitcoin transactions. The country has recently forbid banks and payment processors from converting bitcoin into Yuan. popularity of bitcoin. Bitcoin is not affected by high and low of inflation. With bitcoin, money can be received or sent anywhere and anytime without a bank acting as an intermediary. Bitcoin can be exchanged and managed through various websites (Like www.bitcoin.org or www.thevillage.me) and software along with physical bank- RISK ASSOCIATED WITH BITCOIN notes and coins. The anonymity associated with Number of websites accepting bitcoin with respect to transacbitcoin as a payment is increas- tions has made it a useful tool ing gradually. It is neither is- for transfer of fund by criminal sued by a bank nor by any gov- or purchase of illegal item. It is ernment, also are they not even the world’s most volatile currecognized by any regulatory rency. There is no regulator for agency or any government the currency which is a major body. Newly minted bitcoin are concern for the governments given to bid coin miner who worldwide which makes it diffiperform complex calculation to cult to track thieves and those verify bit coin transaction to dealing in black money. Most common vulnerability prevent misuse of currency. Bitcoin has been a subject of associated with the bitcoin is security due to ties with illicit that bitcoin wallet can be acciactivity. Bitcoin is free from the dentally deleted, lost or stolen. problem of double spending as it verifies each transaction INDIAN ANGLE added to the block chain. Total According to the Wall Street number of bitcoin in the world Journal, India is among the top is limited to 21 million, around 30 bitcoin using countries. 12 million bitcoin are in circu- There are 30000 Bitcoins in lation now. Trading bitcoin for circulation in India and 50 compaper currency take place in mercial establishments have bitcoin exchange such as Japan been using it. These establishbased MT GOX or till recently ments include restaurants, salons, etc. A report in tech B.T.C China. crunch an American technology BITCOINS AND CHINA After the introduction of bitcoin website says a salon in Chandiin 2009, the value of one bit- garh became 1st shop in India coin surpassed $1100 in 2013, to officially accept bitcoin. thanks in large part to a surge Some entrepreneurs in Benin speculative interest from galuru have teamed up to form the Bitcoins Alliance of India (BAI), so as to decide how they want to lobby for the acceptance and use of Bitcoin in the country. Further, KOENIG an IT SOLUTION PROVIDER has launched a training course in bitcoin, it has designed a 4 day programme, the course will be offered from all Koenig centres in India. A very important step is to set up a bitcoin exchange in India, but this setting up of exchange in India is possible only with approval of regulatory bodies like SEBI and RBI.In December 2013, RBI asked some of the bitcoin traders to suspend their operations. The RBI is worried about security, legal and financial risks. These risks include losses due to volatility, money laundering, etc. By—Michael Akbar 2nd Year MIB,JMI For Previous Editions Pleases Visit www.jmimibytes.webs.com