Entrepreneur January 2012

FABER CASTELL: SECRETS OF A SUCCESSFUL EIGHTH GENERATION FAMILY BUSINESS

EX-INDIA CRICKETER DILIP DOSHI’S SWEET SECOND INNINGS

ASHOK SOOTA’S LATEST CRACK AT STARTUP HAPPINESS

SAMSUNG WANTS YOU TO TAKE NOTE

NOT AT ALL SCHMOOZY: THE BUSINESS OF FASHION

PLUS

ALSO

TRENDS SPECIAL

JANUARY 2012 VOLUME 3 ISSUE 5 Rs 100

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INSIGHTS18 BUDGETING, INVESTMENTS AND FINANCIAL PLANNINGRanjeet S. Mudholkar on how the annual personal budget of post-tax income and expenses can be an effective tool in financial planning.

20 SEAL THE DATE!Nandini Vaidyanathan on why someone should date an entrepreneur.

21 STEP CLOSER TO DOUBLE DRIP!Bharat Banka on how most of 2011 played out as he had predicted and makes new predictions for 2012.

SOCIAL ENTREPRENEUR22 AID FROM DOWN UNDERAustralia-born Emily Harrison plans to impact India’s philanthropy space. By Shruti Chakraborty

IN FOCUS26 SECOND INNINGSFormer Indian cricketer Dilip Doshi’s latest venture is a purely organic food store.By Sriya Ray Chaudhuri

SUCCESS INC.30 FAMILY TIESFaber Castell proves how a good succession plan works for a family-run business. By Shruti Chakraborty

32 THE ETERNAL OPTIMISTAshok Soota, ex Co-Founder and Executive Chairman of MindTree, started his second company, Happiest Minds, at 69 years of age. By Shonali Advani

STRATEGY73 IS THERE PROPER ETIQUETTE FOR VIDEO CONFERENCING?Ross McCammon writes about the subtle art of the video call.

IN CONVERSATION80 INDIA WILL GROW 7-10% Arvind Sodhani, President of Intel Capital, talks about venture capital, entrepreneurship and technology.By Shonali Advani

table of contents

38 THIS YEAR, EXPANSION WILL BE DIFFICULTKunwer Sachdev, CEO & MD, Su-Kam Power Systems Ltd.

40 DISCIPLINED GROWTH KEY TO 2012Dheeraj Gupta, Founder, Jumboking Foods Pvt. Ltd.

42 I AM WORRIED ABOUT ANOTHER SLOWDOWNNeelam Chibber, Co-founder, Industree Crafts Private Ltd.

44 REGULATIONS ARE OUR BIGGEST THREATYashish Dahiya , Co-Founder & CEO, Policybazaar

46 A LEVEL-PLAYING FIELD IS A MUSTRajesh Razdan, Co-Founder, mCarbon Tech Innovation Ltd.

47 WANT TO OUTRUN THE SLOWDOWNYusuf Motiwala, Founder and CEO, TringMe

48 WANT TO BE THE GO-TO COMPANY

Vishal Dhar, Co-Founder and President Marketing, iYogi

50 SUBSIDIES MUST BE REMOVEDSrikumar Misra, Founder, MD & CEO, Milk Mantra Dairy Pvt. Ltd.

52 SLOWDOWN WITH AFFECT SPENDSRajiv Vasudevan, CEO, AyurVaid Hospitals

54 WE ARE LOOKING AT 200% GROWTH Neeraj Kakkar, CEO, Hector Beverages Pvt. Ltd.

55 TURNING LEAN TO MANAGE CREDITRajive Chawla, Chairman and MD, Jairaj Ancillaries Pvt. Ltd.

56 COMPETITION IS OUR BIGGEST THREATRajath Kedilaya, Co-Driver, YourCabs

58 TIME TO GO INTERNATIONALBeerud Sheth, Co-Founder and CEO, Webaroo Technology Pvt. Ltd.

37 MEN WHO MATTER

TRENDS SPECIAL60 2012 TRENDS AND TRICKSRead about the 10 trends that will define opportunity next year.By Team Entrepreneur

Intelligent Entrepreneur January 20126

32

22 OPPORTUNITY82 RESORT TO NEW TACTICSNew fashion moves like resort wear and designer swimwear offer entrepreneurs a number of opportunities to dig their heels in.By Sriya Ray Chaudhuri

MONEY88 BUY VERSUS BUILDRead about what big companies need to consider when growing internally.By Sam Hogg

89 HIGH ON VALUATION?Manu Rekhi on thinking through the next financeable event is critical.

90 SMART WAYS TO FIGHT INFLATIONThree effective steps to beat the price rise.By Vatsal Shah

93 THE PERSONAL ECONOMYTurn off the news of financial doom; focus on microeconomics writes J.D. Roth.

TECH DEPARTMENT94 IS BIGGER BETTER?The Samsung Note is being touted as the next big thing in the mobile-tablet hybrid arena. But can it shake off the baggage?By Ankush Chibber

97 MANGO ON THE RADARThe Radar is the first Windows Phone with Mango that we have reviewed. By Ankush Chibber

98 KILL 1?The IdeaPad K1 is the first Android tablet in India out of the Lenovo stables. Does it have what it takes to kill the market?By Ankush Chibber

99 X-ADAMOThe Dell XPS 14z looks to combine the power of the XPS series with the form factor classiness of the now defunct Adamo range.By Ankush Chibber

101 SHOW AND STOREYour small business will do no wrong with our choice of projector and storage.By Ankush Chibber

102 HACK JOBRead about how to protect your business from Malware in custom apps.By Jonathan Blum

26

January 2012 Intelligent Entrepreneur 7

START UPS 106 BRIDGING A PRIMARY GAPNationWide, a chain of primary healthcare clinics, seeks to bridge the divide between family doctors and super-specialty hospitals in India.By Shonali Advani

110 ONE FOR THE ROADThree startups in the urban transport space on the way to success.By Shruti Chakraborty

table of contents

REGULARS10 FEEDBACK

11 RESOURCES

12 SME DOCTOR

16 STUMP SPEAK

134 BACKSTAGE

COVER DESIGN

ARKO PROVO MUKHERJEE

130 129

106

SPEND IT129 SILVER LININGSJuhu’s Silver Beach Café is an ideal continental dining destination.By Sriya Ray Chaudhuri

130 COIMBATORE CALLINGLe Meridien and Aloft have opened their doors in this southern Indian city recently.By Sriya Ray Chaudhuri

133 BIGGER AND BETTERThe Big Nasty gives the Mumbai suburbs a new bistro. By Sriya Ray Chaudhuri

THE ULTIMATE ‘HOW TO’ BUSINESS GUIDE114 Manage Gender Diversity at the Workplace

118 Market an e-Commerce Company

120 Save Costs on Business Travel

121 Deal with Copyright Infringement

123 Create a Youth-Friendly Brand

124 Handle Senior Management Departures

126 Set up Your First Cloud Server

110

Intelligent Entrepreneur January 20128

January 2012 Intelligent Entrepreneur 11

IIT Bombay, under the patronage of UNESCO, aims to discover the best ideas and inno-vations from across the nation that would

reform and revolutionize the present day India via its Techfest 2011-2012 from January 6-Jan-uary 8, 2012. Good ideas are common—what’s uncommon are people who’ll work hard enough to bring them about, says Ideate motto. Believing that all India needs is an idea, a belief and a vision to spark a revolution, Ideate invites everyone to lend a helping hand to the society and improve lives of millions. After all, the secret of getting ahead is getting started. Four genre are open to participation—Utkarsh, Earth, Elixir and Inspire India. While Utkarsh invites technological solu-tions to present day rural problems, Earth seeks to innovate and explore smart methods to deal

with energy and environment crises. Elixir on the hand invites solutions and innovations that stand a chance to conquer the major healthcare challenges the world faces today. Meanwhile, Inspire India is your chance to spark a social

revolution, think, innovate and redesign.

A team may participate in more than one genre of Ideate. However, if the same idea is

presented in more than one genre, then the team stands a chance of winning in only one of those, though it may get other benefits based on the discretion of the judging panel.

Date: January 6-January 8, 2012Venue: MumbaiContact: Harshad Sukalikar (090768 80907)Website: ttp://www.techfest.org/home/event/ideate

TECHFEST 2011-2012

TECHNOLOGY AND ENTREPRENEURSHIP

FESTIVAL 2012

The annual technology and entrepreneurship festival of the Indian Institute of Technology Kanpur called Techkriti is being organized in Kanpur from the 27-30 January 2012. The festival will have talks, workshops, events and competitions around technology and entrepreneurship and will give away prizes of upto 25 lakh rupees through them to participants.

IIT Kanpur’s efforts in encouraging entrepreneur-ship amongst students has been commendable. There will be workshops on cloud computing, animation, entrepreneurship, robot-ics etc. Competitions will include events in robotics, business presentations, aero-modelling, software etc.

IIT Kanpur in its previ-ous editions of Techkriti has been host to talks by Dr. APJ Abdul Kalam, David Morrison, Director, Lunar Science Institute, NASA, Ashish Gupta MD, Helion Ventures Partners, Sanjeev Bhikachandani founder, Naukri.com, amongst others.

Accommodations for the event are available on the campus upon registration for the event.

Date: January 27-30, 2012Venue: IIT KanpurContact: Prashant Bafna +91 90058 50150Website: http://www.tech-kriti.org/

The annual flagship event of the Entrepreneurship Cell IIT Kharagpur—Global Entrepreneurship Summit—is

scheduled from January13 to January 15, 2012. Global Entrepreneurship Summit plays

host to India’s only Global Conference on Entrepreneurship. The 2012 edition of GES will witness guest lectures by various eminent personalities of the likes of Sunita Ramnathkar (Founder FEM Pharma Care), Nikhil Soman (VP Reliance Big Entertainment). Workshops, focused on building the entrepreneurial acumen of participants are also in the pipe-line. An industry talk by Samresh Shah of Cap Gemini, is one such.

A video conferencing session will serve as a conclave for discussion of oppor-tunities and programs aimed towards promoting entrepreneurship in various Universities across the world. The conference will be followed by a discussion amongst the Entrepreneurship Cells in India about the Indian scenario and how best to go about promoting entrepreneurship in their respective campuses.

A few of the participants in GEC will include Shailendra Vyakarnam, Director, Center for Entrepreneurial Learning, Cambridge

University, and Minet Schindehutte, Associate Professor of Entrepreneurship, Whitman School of Management, Syracuse University. The Global business plan competition, Empresario and Envision, the product design competition saw entries from around the country, at the close of the preliminary round in November. The finals

of the competitions will be part of the Global Entrepreneurship Summit, which acts as a finale of sorts to the year-long activities of E-Cell.

Another event of mention is the Startup Camp, which aims to help Start-ups to recruit the finest talent of IIT Kharagpur students for intern-ships/jobs while giving them an opportunity to meet the biggest VC and Angel Investors in India present

on campus. A glimpse of the investors – Navam Capital, Intellicap Ventures, Mumbai Angels, Indian Angel Network, Seeders. 30 startups from various sectors ranging from social ventures to healthcare to technology, from across India participated in GES 2011.

Date: January13-January15, 2012Venue: IIT KharagpurContact: Pranita Padalwar (+91 9564250322) Website: www.ges.ecell-iitkgp.org/

IIT GLOBAL ENTREPRENEURSHIP SUMMIT

[Info that’s handy]

resources

To read more, grab the Jaunuary 2012 issue of EntrepreneurTo Subscribe, visit www.entrepreneurindia.in

Second Innings When a company called Entrack

Organic Haus Pvt. Ltd., based out of Rajkot in Gujarat, recently launched

their first purely organic store in Ahmedabad, not too many eyebrows were raised. Organic Haus, a state-of-the-art organic store designed and conceptualized entirely by German experts, will market organic food and other entirely organic household products imported from Germany.

SPIN WINIt is only the few who knew the story of the man behind this entrepreneurial venture, who were excited. And for good reasons too. For the Chairman and Managing Director of Entrack, a company established in the U.K. two decades back and present in India since 1994, is a graying 60-year-old who answers to the name Dilip R. Doshi. In his youth, he was a lanky, bespectacled left arm spinner who made his Test debut well after his 30th birthday, one of the two cricketers in the world to have emerged so late and still take over 100 Test wickets (the other being the legend-ary Australian spinner Clarrie Grimmett). His Test debut was delayed by several years because the famous spin quartet of Bedi, Chandrashekhar, Venkatraghavan and Prasanna.

Once he gave up the game, though, Dilip Doshi made sure no one could delay his other plans in life. And so started his career as an entrepreneur, a very successful one, we might add.

NEW BALL GAMESThe ex-cricketer wears many hats today. A self-confessed “huge” Rolling Stones fan, he has attended over 180 live shows of the rockers and is fast friends with Mick Jagger. But this mild-man-nered, pure vegetarian Gujarati gentleman who loves his music to be “hard and raunchy,” (“I hate slow numbers,” he recently told a fellow journal-ist) runs a tight ship as an entrepreneur. Organic Haus, which has just opened its Ahmedabad store, will soon venture into other markets, notably Mumbai and is also planning a shop-in-shop presence across India. It was in 1984 that this Rajkot-born, adopted son of Kolkata (where

he lived and spent most of his playing days) founded Entrack in the U.K. where he had settled after retiring from the game. Then, in the mid 1990s (1994-’95), he set up operations in India. Few may know of this, but Entrack handles and represents more than 20 international brands in India. Some of the brands Entrack represents in India and abroad include Mont Blanc, Burberrys, Chirico watches and Canali. “I am a simple man and love the best things in life,” he laughs.

THE ORGANIC ROUTESo, what’s so great about his new venture and how different is this for an entrepreneur till now dealing purely with fashion and lifestyle brands? “This is lifestyle too, isn’t it,” he retorts. “Organic food is all about a healthy lifestyle. Also good living and good healthy food are my twin passions,” he reasons.

The world, he says, is going towards healthy food and people are now watching what they eat. It is the best time, says Doshi, to get into the organic food business, since the market poten-tial is huge. So, Doshi and his team, including his daughter Visakha, spent the last two and a half years researching about organic food and lifestyle products, spending weeks in Germany (“where the organic food market is valued at Rs.27,000 crore, more than the organic food market of all other countries combined,” says Doshi) to final-ize their plans for this new venture.

“I was really impressed by the way they produce organic food, the way the workers work, the manner in which the organic farmers are looked after and encouraged in Germany. No wonder their products are the best,” he says.

He then struck a series of agreements with several German organic food and lifestyle prod-uct manufactures such as Rapunzel (which makes organic chocolates, organic cereals, organic cooking oil that does not lose its good qualities even after cooking).

The products he has are also hugely varied. From organic tea, cereals, oil, chocolates, jam and other products, Organic Haus stores every kind of food you can imagine and the store is designed

Former cricketer Dilip Doshi’s latest

entrepreneurial venture takes the

organic route.By Sriya Ray Chaudhuri

Intelligent Entrepreneur January 201226

in focus

in w ay so that one can find things for breakfast, lunch and dinner in separate areas, one after the other. It also has various lifestyle products such as organic soaps and toiletries, organic weight-re-ducing packages and recipes and even has a live organic salad and pasta counter.

Doshi’s foray into the organic food market is fuelled mainly by the realization that it presents a fantastic business opportunity at a time when the whole world, including India, is waking up to the goodness of organic food and including organic products not just in their daily food intake but also in the other products they use, from soap and shampoo to slimming products and beauty treatments. “It is an irony of sorts that we gave the world organic food and now we are waking up to it again because the developed world has announced its good values. We lost an opportu-nity to be market leaders which we should have been for a thousand years,” says Doshi.

He is pragmatic yet passionate about his busi-ness. “You get into business in areas you are passionate about. That is why I went into the life-style business. Similarly, organic food is some-thing I have always sworn by. In my house in London or in Rajkot you will always find organic food as far as possible. I am a pure vegetarian and I have always been very particular about my food,” he says.

HEALTHY MOVES: Dilip Doshi and (below) products available at Organic Haus

January 2012 Intelligent Entrepreneur 27To read more, grab the Jaunuary 2012 issue of EntrepreneurTo Subscribe, visit www.entrepreneurindia.in

success inc

Intelligent Entrepreneur January 201230

Family-run businesses in India account for about 67 percent of all listed companies in India and account for market capitalization of more than

Rs.250 crore, according to a report by Credit Suisse. Even though family businesses are a centuries-old con-cept in our land, a company running through into its eighth generation is a rare find.

Stationery-maker Faber Castell recently celebrated 250 years of its foundation and has seen through eight generations in that span of time. We caught up with 70-year-old Count Anton Wolfgang von Faber Castell, Chairman, Faber Castell, during his recent visit to India, and asked what it has taken his family to make it this far. Count Anton, sitting in his suite at the Taj Lands End in Mumbai, says that the most signif-icant growth came to his company in the fourth genera-tion. The company was started in 1761 by Kaspar Faber, seven generations before him. Fourth genera-tion head of the com-pany, Baron Lothar von Faber, registered the brand name and undertook a thorough moderniza-tion of the family business.

Of course, the company has not been untouched by issues characteristic of other family businesses. While Baron Lothar took over the business from his father, his brothers wanted to begin separate pencil busi-nesses. Eventually, however, Baron Lothar was able to bring them into the family business and designate spe-cific segments of the business to each. While one of his brothers was sent off to set up the subsidiary of the company in the U.S., his other brother took care of man-ufacturing activities of the company.

Count Anton says that the most important thing has been the fortunate presence of capable people in each generation. “You need to have a structure, you need to ensure that one person in the family can make the

decisions or influence decision making significantly. If you cannot ensure that and if the members of the fam-ily keep fighting on decision-making issues, then you can’t make it this far,” he claims.

“Good managers and a portion of luck,” he says, is what’s needed to make a family business work. You cannot expect members of the family to hold all key managerial positions. “You have to compromise with that. If you do depend on family members to hold all key management positions, eventually you will have to compromise on quality somewhere. Family members should only be taken into the business on the grounds of capability,” says Count Anton.

Coming up with an effective succession plan is a con-cern for every family-run business. Count Anton says the aim of such plans should be to keep them as pro-fessional as possible.

Having worked as an intern at Faber Castell, and as an investment banker, Count Anton had to prove his capabilities before taking over

from his father. His son, he says, works for a well-known management consulting firm. “You should never force your children into the company,” he advises. In the sit-uation that there is no one in the family who wants to actively participate in the running of the company, a controlling position in the board can be given to a member and professional managers should be allowed to run the business.

While in each generation the head of the company has a different approach in dealing with things, for Faber Castell, he says, the only thing that stays consis-tent through the generations is the values and focus on quality from the manufacturing point of view.

He closes our conversation with a one-line advisory for all family-run businesses: “Run your family busi-ness like it’s not a family business.”

Faber Castell has proved how a good succession plan can work wonders for your brand.By Shruti Chakraborty

success inc

FAMILY TIES

"YOU NEED TO ENSURE THAT ONE PERSON IN

THE FAMILY CAN MAKE THE DECISIONS OR

INFLUENCE DECISION- MAKING SIGNIFICANTLY."

January 2012 Intelligent Entrepreneur 31Photos© Neha Mithbawkar To read more, grab the Jaunuary 2012 issue of EntrepreneurTo Subscribe, visit www.entrepreneurindia.in

success inc

Intelligent Entrepreneur January 201232

There are two sets of people in this world. Those that make the best of the opportunities that come their way, and those that spend all their

mental energies on the what-if’s. That is, the optimists and the pessimists. So, when most 69-year-olds are enjoying their post-retirement days, there are some that break the mould and find something interesting and innovative to do with their lives. Ashok Soota is such a person. In August 2011, he announced his sec-ond venture, Happiest Minds, an IT services firm in Bengaluru. Not ready to call it quits, he’s decided to run a company with happy employees because they bring in and keep customers happy. To call him an optimist would be apt.

YESTERYEARSSoota belongs to a family of six siblings. His father was in the army, which gave him the privilege of grow-ing up across the country. By age 12, he had gone to 12 schools. “I built a huge network at a young age and got a pulse of India as a whole,” recalls Soota, Executive Chairman, Happiest Minds. The foundation years helped him adapt to rapid change, and growing up surrounded by siblings gave him multiple mentors. Soota joined the University of Roorkee, the then pre-mier institute in its field, to purse a degree in elec-tronic engineering. He enjoyed a well-rounded life

as a student, taking part in sports, external events, debating and theater.

FIRST JOB AND AN MBAAfter a brief stint at a company which he chooses to write off his career graph as blip, Soota joined DCM (Shriram Group of Industries) in 1965 for senior man-agement training. In 1966 he was transferred to Usha Fans in Kolkata, a city which turned out to be a con-stant in his life, in the form of multiple postings in the years to come. He spent a large part of his career at the company, the then fifth-largest and premier firm in India, until 1984. “It had a great training scheme, and exposed me to multiple cultural experiences,” the soft-spoken Soota reminisces.

And life is also about luck, he believes. Whilst in the third year of his career, the company’s subsidiary in Sri Lanka had a position for an engineer, but one who could do more in the form of sales, procurement, marketing and labor functions. “When they looked at the profile of various people nobody fitted in like I did and there I landed in Sri Lanka, as the number three person in that entire firm,” he says. The role gave him a broad range of functions which Soota said he couldn’t even aspire to get in a larger set up back then. This was 1968-’70, when the nation was idyllic sans political turmoil. For all practical purposes he was

Ashok Soota, former Co-Founder and Executive Chairman of MindTree, stakes claim to this description by starting his second company, Happiest Minds, at 69. Talking to

Shonali Advani, Soota shares the plethora of events that have shaped his story so far.

success inc

THEETERNAL

OPTIMIST

success inc

Intelligent Entrepreneur January 201232

There are two sets of people in this world. Those that make the best of the opportunities that come their way, and those that spend all their

mental energies on the what-if’s. That is, the optimists and the pessimists. So, when most 69-year-olds are enjoying their post-retirement days, there are some that break the mould and find something interesting and innovative to do with their lives. Ashok Soota is such a person. In August 2011, he announced his sec-ond venture, Happiest Minds, an IT services firm in Bengaluru. Not ready to call it quits, he’s decided to run a company with happy employees because they bring in and keep customers happy. To call him an optimist would be apt.

YESTERYEARSSoota belongs to a family of six siblings. His father was in the army, which gave him the privilege of grow-ing up across the country. By age 12, he had gone to 12 schools. “I built a huge network at a young age and got a pulse of India as a whole,” recalls Soota, Executive Chairman, Happiest Minds. The foundation years helped him adapt to rapid change, and growing up surrounded by siblings gave him multiple mentors. Soota joined the University of Roorkee, the then pre-mier institute in its field, to purse a degree in elec-tronic engineering. He enjoyed a well-rounded life

as a student, taking part in sports, external events, debating and theater.

FIRST JOB AND AN MBAAfter a brief stint at a company which he chooses to write off his career graph as blip, Soota joined DCM (Shriram Group of Industries) in 1965 for senior man-agement training. In 1966 he was transferred to Usha Fans in Kolkata, a city which turned out to be a con-stant in his life, in the form of multiple postings in the years to come. He spent a large part of his career at the company, the then fifth-largest and premier firm in India, until 1984. “It had a great training scheme, and exposed me to multiple cultural experiences,” the soft-spoken Soota reminisces.

And life is also about luck, he believes. Whilst in the third year of his career, the company’s subsidiary in Sri Lanka had a position for an engineer, but one who could do more in the form of sales, procurement, marketing and labor functions. “When they looked at the profile of various people nobody fitted in like I did and there I landed in Sri Lanka, as the number three person in that entire firm,” he says. The role gave him a broad range of functions which Soota said he couldn’t even aspire to get in a larger set up back then. This was 1968-’70, when the nation was idyllic sans political turmoil. For all practical purposes he was

Ashok Soota, former Co-Founder and Executive Chairman of MindTree, stakes claim to this description by starting his second company, Happiest Minds, at 69. Talking to

Shonali Advani, Soota shares the plethora of events that have shaped his story so far.

success inc

THEETERNAL

OPTIMIST

January 2012 Intelligent Entrepreneur 33Photos© Maximage To read more, grab the Jaunuary 2012 issue of Entrepreneur

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THE FUNDING SPECIAL

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ARE YOU VC-ELIGIBLE?

APPROACH NON-BANK LENDERS FOR VENTURE DEBT

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FLOW AND GROW: The Story of Indus LeagueRULING REALTY: Sushil Ansal and the Business of Building

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ABHIRAM SETH quit his job at Pepsi to grow seaweed in Madurai

THE FUNDING SPECIAL

6 FUND RAISING MISTAKES TO AVOID

FIND YOUR COMPANY’S VALUE

5 LEGAL ERRORS TO STAY AWAY FROM

ARE YOU VC-ELIGIBLE?

APPROACH NON-BANK LENDERS FOR VENTURE DEBT

GO GLOBAL WITH YOUR CAPITAL NEEDS

We Tell You Who And Where To Get It From.CASH

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BUSINESS OPPORTUNITIES IN GUJARAT

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Photo© ???????????

Will India’s entrepreneurs make that jump to the next

level in 2012 or will they hold their horses?

By Team Entrepreneur

As an entrepreneur, you would not

be found at fault if you thought

that this was the end of 2008 all

over again. There is an air of un-

certainty in India as news of bankruptcies

and defaults come flowing in from abroad.

As we write this, the news is that Swedish

automaker Saab has filed for bankruptcy pro-

tection while banks like HSBC and Citibank

would cut thousands of jobs across the world.

Much of this news is from the developed

and now beleaguered western world. But it is

also true that we live in a much flatter world

today than in 2008.

And so the soothsayers are out of the clos-

et, calling out 2012 as a year of slowdown and

tough times for most Indian businesses.

But these soothsayers are from market

hour television, and so their view of the eco-

nomic scenario is built on the unreliable foun-

dations of stock market movements. The real

picture, however, comes from the men (and

women) in the middle—the entrepreneurs

for whom every year of survival is a success in

itself. These are the people who form the real

pulse of the Indian economic engine.

That is why it is their view of 2012 that we

should look at when forming an opinion of the

Indian economy. We are happy to report that

their view is anything but negative. True that

every entrepreneur is an eternal optimist but,

trust us, these are real entrepreneurs making

real leaps in the next year.

Entrepreneur talked to more than 50 entre-

preneurs and we are republishing the views

of 13 of them here. These 13 come from across

the ecosystem and offer us a glimpse into what

are the hopes, fears, challenges and goals of

their peers in 2012.

There are people like AyurVaid Hospitals’

Rajiv Vasudevan who fears that 2012 may

see a drop in consumer confidence and then

spending. Then there are people like Hector

Beverages’ Neeraj Kakkar who is supremely

confident of 200 percent growth, while oth-

ers like Jairaj Ancillaries’ Rajive Chawla are

fighting to make their organizations lean to

fight the slowdown.

Some others like Milk Mantra’s Srikumar

Misra and Policybazaar’s Yashish Dahiya

don’t care about the slowdown; they just want

the government to leave their sectors alone.

Whoever the entrepreneur, whatever the

sector, there are always hopes and fears. But

what is important is that every entrepreneur

is more positive than he or she is negative.

And that is what the narrative of the Indian

economy should be as well.

cover story

January 2012 Intelligent Entrepreneur 37To read more, grab the Jaunuary 2012 issue of EntrepreneurTo Subscribe, visit www.entrepreneurindia.in

ENTREPRENEUR (E): Can you tell us briefly about Intel Capital’s interest in venture capital?ARVIND SODHANI (AS): We’ve been investing since the mid-80s. Intel Capital in-vestments have always been driven by a desire to pursue technology adoption and ap-plications forward; to build the ecosystem surrounding the PC and encourage entrepreneurship and innova-tion in technology. We announced our Rs.1,250 crore tech fund in India in December 2005 and are currently investing from that. India has a lot of entrepreneurship. It is a powerhouse of soft-ware development and hence it was appropriate to have a fund dedicated to India.

E: How is VC funding different in the U.S. versus India? What does an entrepreneur need to secure funding?AS: The VC industry is not that substantially different from other parts of the world, other than cultural norms which are different. Envi-ronment for success and growth, or efforts made by the government to encourage entrepreneur-ship, are different. In China, the government goes out of its way to encourage entrepreneur-ship and innovation in technology, by providing incubation centers, buildings and facilities.

E: Which sector will be the big game changer this decade? Where do you place your bets: mobility or consumer internet?AS: In India, you are benefiting from a very high growth rate. India is going to experience 7-10 percent growth in the next seven-10 years and that provides a different growth opportunity for startup companies. Not like the U.S., where growth rates are not more than a couple of per-centage. Criteria for investing in the U.S. will be

different from what a startup company will do in India and China. We are investing in ap-plications, devices, software and services and data centers. You cannot pick one and put all resources there, as they all move together. Without a wire-less device or communication infrastructure, investing in data centers is meaningless as devices have to be connected.

These all go together in the form of an ecosystem and have to be invested in and pushed forward at about the same speed. As far as mobility and consumer internet go, we are investing heavily in both and the potential for each is great.

E: What are the emerging opportunities for entrepreneurs in the tech space?AS: In India, technology adaptation is at the low end of the scale. There are opportunities in data centers, communication and infrastructure. Ed-ucation is big, because in India ultimately there are not going to be enough schools to house the growing youth population and it will all have to be done online.

E: You made your first investment in the healthcare sector this year in India. A late entry into this space? AS: We have invested in this space in other parts of the world. Our focus is on connected devices and computing all over the world. Healthcare is going to be one of those applications that is part of the overall connected world.

E: You don’t have any investments in pharmaceutical, bio-technology or retail?AS: Our latest investment Fashionandyou is, to some extent, in the retail space. We are unable to comment on or describe what our next invest-ment will be. We announce it as it happens.

INDIA WILL EXPERIENCE 7-10% GROWTH IN THE NEXT FEW YEARS

Arvind Sodhani, President, Intel

Capital, talks about venture capital,

entrepreneurship and technology in an interview with Shonali Advani.

Intelligent Entrepreneur January 201280

in conversation

ENTREPRENEUR (E): Can you tell us briefly about Intel Capital’s interest in venture capital?ARVIND SODHANI (AS): We’ve been investing since the mid-80s. Intel Capital in-vestments have always been driven by a desire to pursue technology adoption and ap-plications forward; to build the ecosystem surrounding the PC and encourage entrepreneurship and innova-tion in technology. We announced our Rs.1,250 crore tech fund in India in December 2005 and are currently investing from that. India has a lot of entrepreneurship. It is a powerhouse of soft-ware development and hence it was appropriate to have a fund dedicated to India.

E: How is VC funding different in the U.S. versus India? What does an entrepreneur need to secure funding?AS: The VC industry is not that substantially different from other parts of the world, other than cultural norms which are different. Envi-ronment for success and growth, or efforts made by the government to encourage entrepreneur-ship, are different. In China, the government goes out of its way to encourage entrepreneur-ship and innovation in technology, by providing incubation centers, buildings and facilities.

E: Which sector will be the big game changer this decade? Where do you place your bets: mobility or consumer internet?AS: In India, you are benefiting from a very high growth rate. India is going to experience 7-10 percent growth in the next seven-10 years and that provides a different growth opportunity for startup companies. Not like the U.S., where growth rates are not more than a couple of per-centage. Criteria for investing in the U.S. will be

different from what a startup company will do in India and China. We are investing in ap-plications, devices, software and services and data centers. You cannot pick one and put all resources there, as they all move together. Without a wire-less device or communication infrastructure, investing in data centers is meaningless as devices have to be connected.

These all go together in the form of an ecosystem and have to be invested in and pushed forward at about the same speed. As far as mobility and consumer internet go, we are investing heavily in both and the potential for each is great.

E: What are the emerging opportunities for entrepreneurs in the tech space?AS: In India, technology adaptation is at the low end of the scale. There are opportunities in data centers, communication and infrastructure. Ed-ucation is big, because in India ultimately there are not going to be enough schools to house the growing youth population and it will all have to be done online.

E: You made your first investment in the healthcare sector this year in India. A late entry into this space? AS: We have invested in this space in other parts of the world. Our focus is on connected devices and computing all over the world. Healthcare is going to be one of those applications that is part of the overall connected world.

E: You don’t have any investments in pharmaceutical, bio-technology or retail?AS: Our latest investment Fashionandyou is, to some extent, in the retail space. We are unable to comment on or describe what our next invest-ment will be. We announce it as it happens.

INDIA WILL EXPERIENCE 7-10% GROWTH IN THE NEXT FEW YEARS

Arvind Sodhani, President, Intel

Capital, talks about venture capital,

entrepreneurship and technology in an interview with Shonali Advani.

Intelligent Entrepreneur January 201280

in conversation

Janaury 2012 Intelligent Entrepreneur 81

E: How has entrepreneurship changed in India?AS: A lot of role models are now in India. Info-sys was a role model in the technology space. The seven founders did extremely well and it is now a global enterprise and listed. That’s a fabu-lous example that other companies are looking to follow. India is a very entrepreneurial coun-try, with people who are just as entrepreneurial, if not more, than in other parts of the world.

E: What do Indian businesses and/entre-preneurs lack?AS: I don’t find them lacking in any respect. If anything, a startup entrepreneur faces more hurdles in India than any part of the world.

E: What is your investment strategy? AS: We do a very vigorous due diligence. We are looking for financial viability of the company as well as strategic relevance to our ultimate goal. As any VC would, we look at the founders, capability, their understanding of the market, skills and background at being able to manage a startup. We look for a management team, found-ers who are capable and have the entrepreneur-ial drive to get things done. So, basically, the right set of skills. Plus an idea, which has a total available market, that is worth pursuing. If the market size is Rs.100 crore, then it is not worth it. Then we look at competition; if it’s already been tried out, it’s not very interesting.

E: In which regions do you see maximum entrepreneurial activity?AS: We are investing aggressively in emerg-ing countries. We have just started investing in Vietnam, South Africa and Turkey as well.

E: What advice do you give startups when acquiring customers?AS: For startup companies, acquiring compa-nies is the hardest thing to do. One of the things we do is help them with that. Offer a product tai-lored to meet the needs of functionality which is cost-saving. Large corporations are not looking for just a product but also good sales service.

[The author was on a sponsored trip to Intel Capital Global Summit 2011 in California]

“IN INDIA, TECHNOLOGY ADAPTATION IS AT THE LOW END OF THE SCALE. THERE ARE OPPORTUNITIES IN DATA CENTERS, COMMUNICATION AND INFRASTRUCTURE.”

To read more, grab the Jaunuary 2012 issue of EntrepreneurTo Subscribe, visit www.entrepreneurindia.in

RESORT TO NEW TACTICS

New fashion moves offer entrepreneurs a number of opportunities to dig their heels in.

By Sriya Ray Chaudhuri

opportunities

Intelligent Entrepreneur January 201282

RESORT TO NEW TACTICS

New fashion moves offer entrepreneurs a number of opportunities to dig their heels in.

By Sriya Ray Chaudhuri

opportunities

Intelligent Entrepreneur January 201282 Janaury 2012 Intelligent Entrepreneur 83

Move over six-inch stilettos, ban-dage dresses and structured clothes which only suit figures flaunting sizes zero-eight. Now,

it’s all about unstructured, flowing garments which hide all the little love handles your New Year’s binges may have added to your figure. The fabrics are cotton, lycra and georgette and the target: You.

Tapping into the desires of such young and young-at-heart people, who want to buy designer clothes and have the ready moolah to spend on such stuff, Indian designers are gearing up to address the resort wear market to the hilt.

Till now, the focus of most Indian designers has been on the ethnic and bridal wear market. Resort wear has lagged behind as the country lacks enough clientele who are comfortable wearing designer bikinis on public beaches; in fact, the attitude of people towards the swim-wear component of resort wear has made the latter still lag behind in a nascent stage in India. But all that is changing. This was amply proved at last month’s first-ever India Resort Fashion Week (IRFW). India’s bigwig fashion designers, a handful of buyers and fashionistas landed up at the Grand Hyatt Goa for the four-day extrava-ganza which focused on the prime opportuni-ties the resort wear market is now throwing up. So, if you are a fashion entrepreneur waiting for a big break in this glamorous world, here’s how to break into the mould.

WHO WILL BUY IT?Why resort wear, you would ask? Narendra Kumar Ahmed, one of India’s noted fashion designers explains with his customary ease (he was once the fashion editor of a noted fashion magazine, after all), “Resort wear is what India needs now. The smart casual outfits are what we Indians wear most of the time anyway, at par-ties or on our travels. And usually comprising of flowing, unstructured silhouettes, these clothes also hide any body-shape flaws you might have. So, yes, the future of resort wear is especially bright for a country like India.”

WHERE SHOULD YOU LOOK TO SELL? TRADE SHOWSTrade shows are your best bets because it is at these that the maximum number of serious buy-ers is to be found. “I attend at least three to four trade shows every year, all over the world. The

good thing here is that you get a number of buy-ers clustered together and they have all come with the intention to buy. If you can satisfy them with your collection, they will buy,” says fashion designer Anupamaa Dayal.

Also, resort wear being something everyone can wear the world over, you can attend which-ever trade show suits your budget. “Clothes in the resort wear line can be worn on the beaches of Thailand, Malaysia, in the glamorous South of France, Monaco, in Spain and Morocco as well as for a night out in Dubai, Las Vegas or Sydney. It is this very universal appeal that has made the market for resort wear so big all over the world,” explains Manish Malhotra, the ace designer whose show was the Grand Finale of the IRFW, held at Goa’s Marbela Beach Resort.

FASHION WEEKSThese are also events which buzz with a number of serious buyers. In India, a lot of hype is gener-ated around the fashion weeks held in Mumbai and New Delhi, as well as the smaller ones held at Kolkata, Chennai etc.

In fact, there are some designers who com-plain that there are far too many fashion weeks being held today and overkill is spoiling the impact India has on the global market.

However, the main fashion weeks still draw a lot of interest. These fashion weeks also encour-age new and talented designers in segments like GenNext and Emerging Designers categories, which are watched with equal interest by both buyers and India’s top designers. Check out the relevant websites for more information.

SHOWSTOPPERS: Narendra Kumar Ahmed and (right) Pria Kataria Puri

To read more, grab the Jaunuary 2012 issue of EntrepreneurTo Subscribe, visit www.entrepreneurindia.in

Whether you opened your dream business or spent 2011 crying in your cubicle, there’s one thing we all agree on: Some stuff got really old, really fast. By Michelle Juergen

TRENDS WE’RE SICK OF

Illustration© Chaitanya Dinesh Surpur

CHECK-INSIt’s cool when you get a free burger for checking in on your smart-phone, but aren’t you tired of your mom always knowing where you are?

E-CIGARETTESThe real ones aren’t good for you, and the fake ones aren’t, either, because they make you look stupid.

DAILY DEALSWe all like bargains. We all like our friends. But did we really need to buy that group massage just because it was 50 percent off?

THE HUMBLE BRAGDid you have to send that passive-aggressive, self-important tweet? #getoveryourself

THE TERM “DISRUPTIVE”Entrepreneurs need to stop claiming disruption and start proving it. Innovation should be seen, not just heard about.

ASHTON KUTCHER AS TECH GURUWe get it. You have money, clout and charm. Stick to acting and leave technology to the true innovators.

©Entrepreneur December 2011 by Entrepreneur Media, Inc. All rights reserved.

GOURMET CUPCAKESWe overindulged. Enough with the fancy. Let’s go back to eating cookie dough out of the bowl.

THE CLOUDWhat is it, exactly? Is it off-site IT? Is it the celestial jukebox? Is it cirrus? Is it cumulus? Is it a fluffy sheep? The cloud concept is as nebulous as … well, a cloud.

PAMPERED PETSA spa for your cat? Food trucks for your dog? Swimming lessons for your turtle? They’re animals. They don’t care.

RECESSION EXCESSIn the midst of a downturn, there’s no doubt that saving money is critical. But pancake batter from an aerosol can? Really?

back stage

Intelligent Entrepreneur January 2012134