An introduction
Bitcoin is a digital currency created by Satoshi Na-
kamoto. 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 be-
cause it uses cryptography to control the creation
and transfer of money.
Advantages
Low transaction fee (almost zero) versus transac-
tion fees (2-4%) charged by credit card companies
and anonymity led to rising
Mr. Manish Tandon Executive Director
Amira Foods (Delhi)
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 con-
cerned it is definitely an opportunity because the realisation of dollars is
higher. I would say opportunities are immense when it comes to dollar cross-
ing over a certain limit, we become more competitive. The moment dollar
crosses threshold, opportunities are there for the exporters and people have
tapped it.
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 20th 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 4
IN THIS ISSUE:
CORPORATE SOCIAL RESPONSIBILTY ...……….……….1
BITCOIN: LATEST GLOBAL CURRENCY………….………1
CORPORATE SPEAK ……………………….……...1
QUOTE FOR THE MONTH…………………. ……….4
Volume 3 , Issue 1 January 2014
Masters of International Business , Centre for Management Studies ,
JAMIA MILLIA ISLAMIA
CORPORATE SPEAK Bitcoin: Latest Global Currency
Cont….on Page 2
COMPANIES’ OVERVIEW…………………….…….. 3
Corporate Social Responsibility
Cont….on page 2
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, eco-
nomic and social interactions. Constraints, he said, are de-
rived 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 21st
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 Presi-
dent’s assent includes novel provision which made it com-
pulsory 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 prof-
its will have on the direction we want the business to take,
the improvement of genuine business responsibility and
societal trust in business.
As far as challenges are concerned, this volatility is not good. You can make temporary profits but if you are talking in general look-
ing 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 interna tional
market and you talk about Indian basmati it will be preferred because of its quality.
But it is an implementation nightmare with no proper enforcement
mechanism. Only minimum requirement are prescribed and the ac-
tual implementation of the policy is left to the company itself. The
bill does not seek to implement or enforce the CSR policies of indi-
vidual 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 environ-
mental 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 insti-
tutions 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 cor-
porate 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
Page 2
Corporate Social Responsibility Cont…..from Page 1
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 high-
est 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 basi-
cally 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 in-
dustry 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 do-
mestic 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 interna-
tional trade or any other trade.
Ques 8: What will be your message/advice to international business students at Jamia Millia Isla-
mia?
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 In-
sha’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 pack-
aged Indian specialty rice, with
sales in over 40 countries today.
Amira Foods generate the major-
ity 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 ready-
to-eat snacks, to complement
Amira Foods packaged rice of-
ferings, and we also sell bulk
commodities to large interna-
tional and regional trading firms.
———————
Page 3
Cont…..from Page 1
popularity of bitcoin. Bitcoin is
not affected by high and low of
inflation. With bitcoin, money
can be received or sent any-
where and anytime without a
bank acting as an intermediary.
Bitcoin can be exchanged and managed through various web-
sites (Like www.bitcoin.org or
www.thevillage.me) and soft-
ware along with physical bank-
notes and coins.
Number of websites accepting
bitcoin as a payment is increas-
ing gradually. It is neither is-
sued by a bank nor by any gov-
ernment, also are they not even
recognized by any regulatory
agency or any government
body. Newly minted bitcoin are
given to bid coin miner who
perform complex calculation to
verify bit coin transaction to
prevent misuse of currency.
Bitcoin has been a subject of
security due to ties with illicit
activity. Bitcoin is free from the
problem of double spending as
it verifies each transaction
added to the block chain. Total
number of bitcoin in the world
is limited to 21 million, around
12 million bitcoin are in circu-
lation now. Trading bitcoin for
paper currency take place in
bitcoin exchange such as Japan
based MT GOX or till recently
B.T.C China.
BITCOINS AND CHINA
After the introduction of bitcoin
in 2009, the value of one bit-
coin surpassed $1100 in 2013, thanks in large part to a surge in speculative interest from
“The brave may not live forever, but the cautious do not live at all!"
Richard Branson Founder Virgin Group
Masters of International Business,
Centre for Management Studies,
Jamia Millia Islamia
E-mail: [email protected],
9650430820,8285817199
For Previous Editions Pleases Visit www.jmimibytes.webs.com
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 ex-
change.
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.
RISK ASSOCIATED WITH
BITCOIN
The anonymity associated with
bitcoin with respect to transac-
tions has made it a useful tool
for transfer of fund by criminal
or purchase of illegal item. It is
the world’s most volatile cur-
rency. There is no regulator for
the currency which is a major
concern for the governments
worldwide which makes it diffi-
cult to track thieves and those
dealing in black money.
Most common vulnerability
associated with the bitcoin is
that bitcoin wallet can be acci-
dentally deleted, lost or stolen.
INDIAN ANGLE
According to the Wall Street
Journal, India is among the top
30 bitcoin using countries.
There are 30000 Bitcoins in
circulation in India and 50 com-
mercial establishments have
been using it. These establish-
ments include restaurants, sa-
lons, etc. A report in tech
crunch an American technology
website says a salon in Chandi-
garh became 1st shop in India
to officially accept bitcoin.
Some entrepreneurs in Ben-
galuru have teamed up to form
the Bitcoins Alliance of India
Bitcoin: Latest Global Currency
Cont…..from Page 1
Quote For The Month
(BAI), so as to decide how
they want to lobby for the
acceptance and use of Bit-
coin in the country. Fur-ther, KOENIG an IT SO-
LUTION 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 ap-
proval of regulatory bodies
like SEBI and RBI.In De-
cember 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
Page 4