Guldasta

A bouquet of flowers picked along the way ….

A candle in every home July 9, 2007

Filed under: India,life — gurdas @ :

I met Rajesh some three years ago when he approached me for contribution to an organisation engaged in social service. Something about his demeanour encouraged me to contribute without knowing anything about the organisation. Nearly always the funds were for the food service for poor patients undergoing medical care at the city government hospital. On each occasion we met, I have found him graceful and humble. And he carries a most disarming smile that shows his untidy teeth (something I have suggested he should attend to). Last year, while Vadodara was struggling with another instance of failing civic infrastructure in the face of torrential downpur, Rajesh and his friends were busy running a food stall for those without homes and the means to cook. While his home was more than half submerged in water! His father, a cancer patient, is (probably) unable to contribute much to the family in way of monetary or person support. But it is clear that he is the source of Rajesh’s humility and politeness.

A few days ago, Rajesh informed me of the requirement of notepads for kids at a school in Ahmedabad. I agreed to see what I could do and gave him a date when he should contact me. It turned out to be a busy week and I slipped twice on my committed time to him, which made me feel unusually guilty. Until one day some repair work at home had me leave office earlier than usual. The repair work did not happen but that gave me some time to go shop for the notebooks. By the time I was done it was already late in the evening. And the following 2-3 days were again looking to be tight. So I called Rajesh and offered to drop the stuff at a known spot quite close to his home. At first he refused, saying he will pick them up next day, but I knew that synchronisation could be an issue and that will only add to the delay. So, I persisted and he hesitantly accepted the proposal. While simultaneously adding, in his characteristic style, that I must visit his home and have a drink. I gladly agreed and the deal was stuck.

Dinner done, I reached the rendezvous. Hardly had I parked that a young girl peered into the window, leaving me mildly startled. As I got out, I noticed two more girls and another woman who seemed like their mother, flanking one side of my vehicle. They were looking at me with questioning smiles. I returned a half smile and proceeded to call Rajesh to enquire his whereabouts or the way to his house. Only to realise Rajesh was standing a few feet away and the women surrounding my car were his family! Greetings exchanged, I handed over the notebooks and was “escorted” to his house. Rajesh lives in the basti (collection of shanties) adjoining the Vishwamitri rivulet in the Mujhmuda area of Vadodara. Some of the  houses were made of brick and mortar while others were rather temporary structures made of tin roofs and loosely put together walls. Nearly all houses were huddled together tightly, as if in fear. As we walked, people stopped and looked with curiosity, leaving me somewhat uneasy. I wonder what Rajesh and his family might be feeling?

The house was hardly 50 paces from where I parked and, to my great relief, we reached it in no time. I stooped to enter the low doorway and was seated on the bed which doubled as a sofa. Rajesh, his mother and three sisters sat on the floor forming a semi-circle in front of me. Unaccustomed to such an experience I was confused on what to do. Should I join them and sit on the floor or continue sitting on the bed? I noticed they were totally at ease with this arrangement and I decided to keep it as such. One of the sisters brought an aerated beverage for me and after some cajoling they added a tumbler to allow for the drink to be shared. There are certain traits which were unique to the unfolding scene. Above all, was the easy atmosphere. Second, other than Rajesh’s father (who was away for treatment) the complete family was taking part in my visit. We got chatting in no time and I got to take a small peek into the lives of a different India.

Over the next 45 odd minutes, I learnt about their struggles and triumphs. Of how simple their expectations are and how miserably the government fails to meet even those. Why government sponsored primary education (in India) is only a facade. And what makes the elder and middle sister exit their education to contribute to the family’s earning. When school does not even teach you to spell your name by class 3, you know there is not much that will come out of another 7 years of it. Of how, in the absence of proper sewerage they have no choice but to defecate under a nearby abandoned bridge. I find it irritating that in India, toilets (and their cleanliness) are not looked upon as priority. What civic sense can you expect from people who are so failed by the government that they have to start their day by hiding from public eye as they answer nature’s call? People need to be trained to be better citizens who care for the environment. And this training cannot happen when you treat them as filth. To quote, a clear case of “Garbage In, Garbage Out”.

Rajesh’s mother is a house-help and so is the elder sister, who is just 15. Rajesh, the eldest of the four siblings, is 21. The middle sister, all of 12 is learning to stitch. The youngest, aged 9, goes to school where she learns nothing. The school, if we can call it that, is a single unpartitioned hall where students of all grades sit next to each other. So close that dictates of one teacher (for her students) are mistakenly followed by another grade. In the chaos that ensues, what learning can happen?

Together, the mother and two sisters contribute some three thousand odd rupees to the household income of eight to ten thousand rupees. The remaining comes from the cloth trading by Rajesh. And this is not even close to what poverty is in India. Real poverty is at least five, maybe ten, times poorer. But even for Rajesh’s family, the not-so-bad financial situation has come at the cost of terminated education of the children. If all three sisters were to be enrolled into a decent school, the cost of education and their missing earnings would have turned the tables; throwing this family into very tough times. Possibly, impossible times. They are also saving for the marriage of the eldest girl. The little flesh left on their bones will be gnawed by the evil of dowry. It is in such settings that you feel the impact of traditions set by society. No dowry and a low cost marriage could have meant good education for the children. They will now be left to the whims of their husbands who will make them work and not wink an eyelid while beating them black and blue.

And amongst all this Rajesh finds time to help others. And his actions are appreciated by his mother who says he must do what needs to be done. It was time for me to leave. But before I said goodbye I made them promise me two things: they will marry the elder daughter only when she turns eighteen and they will enroll the youngest to tuition classes where she can get some real education. I intend to follow-up on the later and will post the outcome here.

India, for all its drawbacks, is not deficit of people like Rajesh. If only the government and the citizens adopt welfare as their foremost role, we can set alight these candles of change.

In every home.

 

She May 18, 2007

Filed under: India,women — gurdas @ :

I plunged my bike into the curve and just as I came out of the turn, I saw her.

Sweat on her brow and broom in hand, she was one of the many women working on the new road under construction.

Who is she? What are her aspirations? Does she have kids? How many? Do they go to school? How does her husband treat her? Will she always only clean roads in the sweltering 40degC heat? Does she worry about her future?

I had no answer to my questions. How small I felt and how ignorant.

As I passed in front of her, our eyes met.

It was as if she knew all about my questions. And yet happily forgives me for having just questions.

I wonder who she was…

 

Jeh Jawan, Jeh Kissan, Jeh Aam Aadmi May 9, 2007

Filed under: Automobiles,Business Houses,India — gurdas @ :

So, Tata Motors is going to launch a Rs. One Lakh (1,00,000) car!
So, I don’t think it can be done.
So what even if it can be done?
So, it will be crap and nobody is going to buy it!
 

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So much skepticism!! Typical statements you hear when the subject of discussion is the upcoming Rs. 1-lakh car from Tata Motors. And I remember hearing similar stuff when Tata Motors announced they will launch India’s first indigenously designed car – now known as Indica. But that was in 1998. The rest is history.

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Indica is maybe still not very refined and the overall fit and finish looks like it needs some help. But, guess what, it is India’s second largest selling car model that happily has some 144,690  units rolling off every year! Which means, every single day close to 396 people in India buy an Indica. Some numbers, eh?

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And the Tatas have learnt a few tricks from their experience with Indica. To me that means if anybody can pull off the 1-lakh car, it is the Tatas. A view held by many others. In an ongoing poll on sify.com more than 85% people say Yes to the question “Do you think Tata’s will keep their word in bringing out the 1 Lakh car in 3 years?” 

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Before we talk of other stuff, here is what is more or less known about this ‘super’ car:
Engine: 600cc (to be very exact, 630cc), 2-cylinder, about 34bhp, rear fit.

Gearbox: Might have a CVT, i.e. no gear shifting required.
Capacity: 4 seater, and by India’s standards that automatically means 5-seater!
Looks: very cute
Price: Rs. 1,00,000/- ex-factory… boy oh boy!
Name: “Jeh”, after J.R.D. Tata. Might change. But I would love it be this.

So, what does that price mean? Let us consider an on-road price of Rs. 1,20,000/-.The down payment works out to just Rs. 18,000/-. The EMI for the remaining amount on a loan period of 7 years would come to less than Rs. 1700/-
Voila!!
Note: when you buy a second hand car, the loan duration is calculated as:
7 – years since manufacturing

For a Maruti 800 (in excellent condition), it must be model 2002 or before to be available at 1.2 Lakh. This means, at best a 2 year loan. And the interest rates for second hand cars are significantly higher than new vehicle rates.

Is this the kind of reasoning folks at Tata Motors would have fallen on to estimate the threat from Maruti 800. I do not know. Any caveats I left out? Please tell me. 

That said, the biggest threat to the market pie for this segment is likely to come from Suzuki, a company known for its superlative grasp of small car dynamics.

http://www.financialexpress.com/fe_full_story.php?content_id=148278    

Who is a potential customer? 

  1. I would say every two wheeler owner who is looking to buy a two-wheeler costing more than 48000/-
  2. Intra-city taxi services. This could be a surprise market. Never before have we had a car that is great economics for intra-city taxi services. With this car, your typical 8hr, 80km inside city slot might become available for 30% less than today’s rate. And for every 1 Indica, the taxi wallah can now buy 3 Jeh.
  3. The college going 20 year old whose parents earn 4+ Lakh/annum. You might see a sudden churning in gender based vehicle sales with rich parents wanting to give their daughters a car rather than a 2-wheeler.
  4. The ‘other’ vehicle in a family where one spouse travels more and has a bigger car, while the other spouse travels occasionally (or to short distances).

What the car MUST achieve to become a hit? 

  1. Cost close to 1Lakh for the entry version and below 1.2Lakh for the version with AC.
  2. Good fuel economy. If it gives 30kmpl, landslide sales are more or less guaranteed. Anything above 25kmpl will be acceptable. Fuel efficiency is the least known figure of this car and I believe will play an important role in deciding how much of a success it is.
  3. Cute looks. Remember the Volkswagen Beetle? Cute looks = Love. And when in love, people become blind to even obvious flaws. I have a strong hunch that the Beetle is the car the Tatas have in mind The 1955 ‘bug’ (the Beetle’s nickname) had a rear engine, top speed of 115kmph and 34 bhp engine. And if you were to say “that was in 1955”, just remember that the Maruti 800 even today produces only 37bhp. http://en.wikipedia.org/wiki/Volkswagen_Beetle
  4. Should not be visibly compromised in safety and finish.
  5. An advertising campaign that forces home the utility of a car vis-à-vis a 2-wheeler. Like showing the pain of carrying home vegetables and grocery from the market. Or taking 2 kids and your wife to the movie. Or taking your old parents to the hospital in a rickshaw. Or struggling to save your precious documents from getting wet on a rainy day. Or desperately wanting a bath simply because the car ahead of you created a dust storm (while you were on the way to office). Or having your kid catch pneumonia because you’ll got wet on the way back from school. Unlike ever before, this car’s campaign must persuade the target customer to take on a small economic burden to offset the daily pain of not having a car. Spend no time comparing this car with other cars. Just pitch it against top-end 2-wheelers. And maybe low end second hand cars. 
  6. Partnership with finance agencies to deliver an innovative scheme which will minimise the economic burden of the 2-wheeler buyer migrating upwards.
  7. Give a “in your face” warranty – like say 3 years. Might not be feasible due to cost concerns. But if this can be done, it gives a subtle and yet full message that says “listen, this car is good quality”.


What does NOT matter

  1. Any technical wizardry. Like how many bit processor, fuel injection or carburettor, how many cylinders or valves per cylinder, bhp, cc. Who cares?
  2. Top speed figures. If the car touches 100kmph with 4 people seated, it is enough. Period.

Possible impact? 

  1. A major addition to vehicular pollution levels. I hope the Tatas have done their homework here.
  2. Space crunch on the roads. The government might have to take some drastic measures. At 8 million per annum, the 2-wheeler market is huge. If just 5% of that converts to Jeh, you have a figure of 4,00,000 –  that is nearly 2 times the total passenger vehicle sales from Tata Motors!!.
  3. A definite change in mindset. Remember, in India, the car is still associated with luxury. If the average Indian suddenly has a car parked in his house, he/she is going to feel important, and more worthwhile. Who knows we might see a revolution in the very approach to life in India.

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I have purposefully taken some sweeping projections. I wanted to do that because it is important to estimate what is possible. Maybe Jeh does not achieve even half of this. Maybe it will do twice as more. But what really touches me and is the single biggest reason that makes me pray for its success is this – the average middle class Indian will be able to take his family of four for an outing without having to worry about safety, wind, sun or rain. I do not care much if the college going kid gets a car or the taxi wallah gets his taxis – they are just numbers. The real thing is that middle class Indian who deep inside his heart feels a pinch every time he gets onto his 2-wheeler, has his wife struggling to balance one kid on her lap while he perches the other kid on the petrol tank.In an interview that appeared in the English daily Telegraph, Mr. Ratan Tata voiced being inspired by a similar scene.

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Mr. Tata, I love Jeh the visionary, I love you, and I am already in love with Jeh the 1-lakh car.

Bring it on!.

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A quick background so that my piece is read with a pinch of salt. 

I was born and brought up in Jamshedpur – a city literally built by the Tatas. An amazing oasis in the desert of Bihar (now Jharkhand). And how wonderfully they have kept it! My father retired from Tata Motors after a stint of 39 years. And though I have never met any of the top brass at Tata Sons, my life and the lives of so many around me, have been touched by their corporate governance and social responsibility standards. One needs to visit Jamshedpur and its surrounding areas to see what the Tatas have achieved.

In India, they have no parallel.

To hear what Suhel Seth has to say about Jamshedpur and the Tatas, click

http://www.tata.com:80/tata_steel/media/20040505.htm 

Links that helped me gather information

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The 1-lakh car


http://www.forbes.com/free_forbes/2007/0416/070.html
http://www.rediff.com/money/2007/mar/30tata.htm (same article as above, easier to read)
http://www.blonnet.com/2007/03/07/stories/2007030706000100.htm
http://www.blonnet.com/2007/04/05/stories/2007040504260200.htm
http://news.moneycontrol.com/mccode/news/article/news_article.php?autono=279302

http://in.rediff.com/money/2005/aug/31tata1.htm 

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Car sales
http://economictimes.indiatimes.com/articleshow/1078296.cms
http://www.indica.co.za/tata_motors/releases/20060404.htm
http://www.tata.com/tata_motors/articles/20051011.htm
http://www.indiaprwire.com/pressrelease/auto/200703022091.htm
http://tata.com/tata_motors/releases/20060904.htm
http://www.tatamotors.com/our_world/press_releases.php?ID=297&action=Pull
http://www.thehindubusinessline.com/2005/04/09/stories/2005040901570200.htm
http://www.nasdaq.com/aspxcontent/NewsStory.aspx?cpath=20070503%5CACQRTT200705030757RTTRADERUSEQUITY_0557.htm& .

2-wheeler sales

http://www.automobileindia.com/two-wheeler-statistics/sales.html .

Just for fun – some other concepts

http://www.dancewithshadows.com/one_lakh_car.asp