DANDEKAR TROPHY COMPETITION: 2008-2009

BOMBAY MANAGEMENT ASSOCIATION

by Abhinay Vishnoi

Gaurav ChoukaseyRajat Sahai

“Is the glass half full, or half empty?

It depends on whether you're pouring, or drinking.”

- Bill Cosby

Economic recession a caveat or opportunity for corrective pause

Attitude and point-of-view matters

Global business cycle – objectivity – challenging year ahead

Amidst problems lies the seed of opportunity

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Started as subprime crisis in USA in 2007

Jargons doing the round – securitized mortgages, CDO, CDS

Monster – credit crunch intensifies, housing bubble bursts

Victims – Lehman Brothers, WaMu, AIG, and many more

…wait for the sequel

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"We can't solve problems by using the same kind of thinking

we used when we created them."

- Albert Einstein

Recession affects world economies – India, China, Japan, UK, etc

Governments & central banks firefighting – stimulus packages

Slowdown evident & definite – challenges open new horizons

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Silver lining – 50% of India’s GDP – from this sector

Addressable opportunity – global BPO – BFSI, Telecom, Govt.

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Cement

Mining

Education

Agriculture

Tourism

Insurance esp. healthcare

IT and BPO

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Global-Indian scenario

Flagship company of Sesa Group

Major stakeholder - Vedanta Group

Largest exporter of iron ore

Turnover - Rs. 1800 crores

Other endeavors -- 280,000 TPY metallurgical coke plant

-- 250,000 TPY pig iron plant

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Cost effectiveness & no-layoffs

Self-consumption & multiple revenue sources

Self-sufficiency

Coke Production

Power Plant - 30MW

Pro-active strategy

Other cost cutting measures: River transport , etc

Green Mining Initiative

Corporate Social Responsibility

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Q3 Results

Net profit of Rs. 607.60 crores

Income from operations rose to Rs. 1,497.33 crores

Conclusions

• Innovative and flexible practices

• Well informed firm

• Objectivity

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Travel for recreation or leisure

2007: 903 million tourist arrivals, $856b in revenue

2008: Growth of just 2%

2009: Growth expected to drop by 5.3%

2010: Growth expected to drop by 0.2%

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Agra: 20-30% reduction in foreign tourist arrivals (FTA)

Goa: 20% decrease in FTA

Reduction in flights at Dabolim airport: 42 to 25

Kashmir: 32% reduction in FTA

10-15% occupancy in Gulmarg and Kashmir

Kerala: 35% decrease in FTA

35% reduction in occupancy of house boats

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The new business model – focus on domestic tourists

Packages & Promotion

4 important considerations:

Manage the costs

Keep the cash flowing

Focus on good customer service

Don’t stop marketing

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The forest is mysterious dark and deep

I have many promises to keep

And many miles to go before I sleep

And many miles to go before I sleep

- Robert Frost17

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