K. Karunakaran, the politician also known as 'Leader', is the best institution builder we had in Kerala. No politician supported industries and encouraged private enterprises in Kerala like he did. The wily politician is but known more for nepotism and corruption. A list of projects which would not have realized without Karunakaran are, Cochin International Airport Ltd [CIAL] - India's first airport under Public-Private Participation - Also the project that showed us the real potential of Non-Resident Keralites Kayamkulam Thermal Power Plant Technopark, India's first Technology (IT) park Jawaharlal Nehru International Stadium in Kochi Rajiv Gandhi Centre for Biotechnology Pariyaram Medical College Keltron Guruvayur railway line Self-financing educational institutions for higher education But, his biggest contribution to the Kerala economy remains how he curtailed Naxalism. This attains importance as it is still a nagging issue hindering economic development in...

Kerala got three international airports now at Cochin, Thiruvananthapuram and Kozhikode. Another airport is being built at Kannur for which the work is expected to begin soon (or has it started). With 4 million Non-resident Keralites , Kerala can accomodate an airport each in every district. This used to be a joke but may become a reality with fifth airport on its way at Aranmula in Pathanamthitta district. KGS Aranmula Airport is being promoted by KGS Group with a significant investement coming from Anil Ambani. The plans are ambitious as the airport could serve a large population from the belt regularly traveling to US and Canada. Backwaters nearby can bring in tourists from across country and world. Airport also could be a boon for more than 40 million Sabarimala pilgrims. As with any other industrial projects in Kerala, this too has to be approved by political, social and environmental activists first. 

The latest Kerala Tourism Ad campaign - "Your Moment is Waiting" - is evoking mixed responses from the ad fraternity. As Gopinath Menon said in Business Line - "It is tangentially different from all that has been done on Kerala Tourism till now. There are two kinds of mindsets that visit Kerala: There is a ‘traveller' mindset and a ‘tourist' mindset. The traveller is the intelligent guy, the explorer instincts are strong and the journey is as important as the destination. The other one, with the tourist mindset, is the LTC traveller, the pre-decided one. This communication is clearly talking to the traveller mindset." and adds "if you look at the thousands visiting Kerala every year, the traveller mindset is unlikely to fall into the majority." This campaign is predominantly targeting foreign visitors. But what do they come for? It is for the unique Kerala experience and the ad would disappoint them for sure. Their experience in Kerala is bound t...

Manorama paper reports that, in 2010 Onam season household goods clocked a record sales turnover of Rs.700 crores. The report says almost 2 lakh refrigerators were sold in three months from July to September. Washing Machines, LCD TVs, Mixies, DVD players, Induction Cookers and Digital Cameras also recorded good sales. Onam remains to be the biggest shopping season in Kerala. Refrigerators and Washing Machines would keep riding the market with good numbers as there exists a big market for them to penetrate.

Rubber latex is found to have applications in the cosmetic industry. Rapepun Wititsuwannakul, a researcher and professor in Biochemistry at Prince of Songkla University in Thailand holds Intellectual Property Rights on the use of latex as an effective agent in whitening products. More about this can be found here . Rubber latex is found to have inherent abilities to make skin brighter or darker! This is interesting and holds huge economic prospects for rubber growers in Kerala and India.

Smoking in public places is a punishable offence in Kerala since 1999 following a High Court directive. It is strictly followed inside public places like hotels, cinema halls, hospitals, bus stands, railway stations, airports, shops, malls, etc. But not on roads. This is a good law but almost impossible to implement. Policemen enforces this law mostly for some petty personal gains. The trick lies in making public knowledgeable about harmful sides of smoking rather than enforcing it by law. Yes, law is needed to punish people smoking in places but, policemen should not invest their time and energy to stop every smoker. Policemen have better things to do on their job.

Kerala is gearing up for a flurry of news channels. As per this  report  by Ajayan in today's Mint paper, there will be at least a dozen news channels launched in next few months - some supported by politicians and  political parties (Muraleedharan, Muslim League ), some by print media houses (Mathrubhumi, Kerala Kaumudi, Madhyamam, Mangalam) and another interesting venture by Nikesh Kumar  touted to be called 'Reporter'. The Mint report is not going to challenge business acumen of people behind these ventures as they are only  keeping up with the Joneses . A news channel would be justified for a political party. For others, this will be a learning experience they will not forget easily. If they are able to prove something special, the entire media industry across the world will take notice of it.

Government of India has proposed a Mass Communication Institute in Kerala and it seems 10 acres of land earlier allotted for the purpose is already under Kerala Governement's posession in Kottayam . Indian Institute of Mass Communication [IIMC] is a national institute for training, teaching and research in mass communication. It augur's well to have an IIMC at Kottayam, identified as the literary base of Kerala. It would be a proud moment for every Keralites, particularly people predominant in national Media, Advertising and Public Relations industry.

If everything goes well for Kunnath Pharmaceuticals and Musli Power, we might see Musli Power on Indian Cricket Team jersey and before that it will be Musli Power sponsoring Kerala IPL [Indian Premier League] team. For now, Musli Power is a leading sponsor of various sports events and teams in India and abroad.  Musli Power is the title sponsor of cricket team Wayamba Elevens of Sri Lanka at the Champions League T20 in South Africa and an Indian football club, Churchill Brothers Sports Club . Musli Power was one among the seven sponsors of Hockey World Cup 2010 broadcasted on Ten Sports and among seven sponsors of Kerala's Nehru Trophy Boat Race 2009 . It is also reported that Musli Power is the health power licensee of Common Wealth Games 2010 . None of the deal values are announced in public domain. Musli Power from Kunnath Pharmaceuticals is an over the counter aphrodisiac product claiming to cure infertility and impotency. As per a report in Tehelka , Musli Power is giving...

Muthoot Finance Ltd [MFIN] raised Rs 43 crore from Kotak India Private Equity Fund. The deal valued  MFIN, the largest gold loan company according to ICRA, at around Rs 3,925 crore. Baring Private Equity Partners India and Matrix Partners India had infused Rs.157 crore in MFIN last month. Kerala is home to many large scale gold loan companies in India - Muthoot Finance [MFIN], Muthoot Pappachan, Mini Muthoot, Manappuram and Kosamattam. All Muthoot names are from a single family with separate business run by brothers and cousins. Muthoot boasts a tradition of 123 years. Among this Manappuram is the most aggressive in marketing using regional and national film stars in their campaigns. Lately Sequoia Capital exited Manappuram General Finance & Leasing with 5x returns . As such the business model of these NBFCs are not lucid. Also, almost all banks worth their name in India is offering gold loans at their branches questioning the sustainability of these NBFCs.

As per this report in Hindu,  Kochi is among 14 places across the country identified by the Union Ministry of Human Resource Development (MHRD) for setting up a world class innovation university.  These universities will be self-sustainable, not-for-profit legal entity with surplus revenue invested for the growth and development of the university, functioning privately, independently and separately under its own 'board of governors' in a chosen subject or theme. Kerala is different where good cannot happen so easily even if it is bestowed. Read this follow-up story.

Varkeys Bakery and Supermarket went out of stock for more than two weeks. Customers were returned saying there are some supplier issues which have been sorted out. According to media reports , Varkeys is facing liquidity crunch. Varkeys is reported to have 59 stores across Kerala in different formats generating Rs.180 crore in turnover. Varkeys is now looking for PE funds , which would be slightly difficult to come by as they have failed in an earlier attempt and there are cases of Subhiksha and Vishal Retail winding up or looking for fund infusion. Varkeys is the pioneer in organised retail in Kerala and is known for quality of products they sell but utmost professionalism was always missing. It is widely believed that rapid expansion has brought Varkeys in to this soup. Competition also is hardening with new organised players coming every now and then which includes Margin Free, Reliance and Big Bazaar. There are also neighbourhood stores morphing in to supermarket, as they are ...

According to this news in Mint , there were 13 reported incidents of ragging in Kerala in the academic year 2009-'10. Nationally there was 164 reported cases and Kerala ranks fourth after Uttar Pradesh (26), Andhra Pradesh (18) and Tamil Nadu (14). There was 19 deaths across nation due to ragging. Ragging, banned in India, is prevalent in almost all undergraduate campuses across India. Kerala is not different with ragging in many forms. Most of them would be really funny which everyone would enjoy for their whole life. But some go to extreme levels of cruelty, which should be stopped by any means. Proactive college administration can always manage ragging inside their campus.

K. M. Mathew, Chief Editor of the iconic Malayalam  newspaper Malayala Manorama passed away yesterday. Malayala Manorama became a media conglomerate under his stewardship. His astuteness is widely recognized as also his humility and professionalism. He made his opinions loud, his friendships known and his dislikes expressed. Huge strata of middle class and high income family rallied behind him. They considered him and his publications as a natural companion and a family friend. Communists opposed and they stood alone! From today, many things in Kerala would be marked as 'after K. M. Mathew'. Kerala politics, politics and fighting in Christian community, Elections, Economy, Education, Communal equations, values, language and culture - he had an influence on every Malayali. We will not realize his influence in our life till we closely analyze everything around us. In 56 years, his paper grew to become the largest read regional language newspaper in India and fourth largest read ...

It is the turn of Sony and Godrej to set their sales targets for this Onam. Sony aims Rs.100 crore turnover with a marketing investment of Rs.5.5 crore. Godrej has set Rs.80 crore as their sales target compared to their Rs. 52 crore business last year, an expectation of 50% growth. Both of them also announced various Onam special offers.

Kerala government can consider establishing an employment exchange in partnership with private firms. This will be a great way to make jobs available for a larger public even in hinter lands. With Akshaya centres and broadband connection at all Panchayats, an employment exchange that can be accesed over internet will be a boon for all in Kerala. Karnataka governement has plans to partner with TeamLease. Politicians in Kerala might think why partnering with a private enterprise, and may decide to do it alone. But a public enterprise will not be able match resources of a private enterprise here.

Onam is the biggest shopping season in Kerala. Economy eagerly awaits a heady Onam every year as it is the momentous time when every Malayali open their wallets. After a tepid Onam last year, expectations are huge this time. The buzz has started even though it is still a month away. Onam is a season when consumers are canvassed to spend for their wants rather than needs. Consumers will be convinced that they are getting unforeseen and unbelievable offers. It's a time when consumer prudence generally takes a walk and returns back after their indulgence only to realize that they have been outsmarted by some marketing professionals. But it doesn't matter as the saying goes 'Kaanam Vittum Onam Vanganam (Unnanam)'. Like every year, electronic goods, textiles, gold, automobiles, fancy ornaments, home decor & furnishings and alcohol would be on demand like there is no tomorrow. Discount offers will be a regular feature at every store. Electronic goods manufacturer LG a...

As per the comment by Indian Commerce Secretary, Rahul Khullar, government may reduce customs duty on natural rubber which is at 20% now. Rubber prices should moderate with a reduction in customs duty.  Internationally the prices of natural rubber is in the range Rs.150-160 per kg while it is Rs.170-180 in the domestic market. This has been hurting tyre manufacturers. Automobile industry is in a quandary where they are not able to meet customer demands due to lack of tyres in the market. Recently India became the second largest consumer of natural rubber after China. One leading commercial vehicle manufacturer is rolling out trucks with only 4 tyres fitted. They are fitting another two tyres while the vehicle is with dealers. 

Business Line has a report here  that also shows a list of towns with ranks according to Income Tax collections. Kochi is ranked 19th with a collection of Rs.1091 crores in the financial year 2007-'08. This was an increase of 42% from the previous year. Thiruvananthapuram is ranked 41st with a tax collection of Rs.471 crores, less than half of Kochi. It can be said that the rank indicates business potential of that particular city. Thus it is significant to note that Kochi ranks above Lucknow, Coimbatore and Madurai.

Kerala State Road Transport Corporation [KSRTC] has put out a tender inviting applications for licence to display advertisements on their 5473 buses which includes 20 A/C buses. The tender can be seen here . Tender is for 2 years which can be extended for another 2 years with a 25% increase. Tender costs Rs. 25,000 and closes on 3rd August, 2010. There was a notification last year as well. Whatever happened there was only very few advertisements seen on buses. This is a big opportunity for everyone involved - advertiser, agency and KSRTC - provided the license is with a professional agency with national reach and there is a mechanism inside KSRTC to maintain advertisement materials on buses. As such buses other than premium are not even washed and taken care off well. Advertisements are a gold mine for KSRTC. It would be better for KSRTC to take an agency on board for a fee (fixed + variable) and work with them to get advertisements and mange them too. There are many more op...

Kerala government made Rs.483 crores selling lotteries in the year 2008-09. Revenue from lotteries grew a substantial 31% from the previous year. Lottery is huge business in Kerala. Lottery agents and shops are ubiquitous. It provides large scale employment. Everybody seems to buy tickets on a daily basis. Interestingly the governement opposes online lotteries. Is lotteries good for the economy? An economic pragmatist would say an emphatic no.

Today is yet another 'Hartal' day. The last one was on 26th June, 2010. Two hartals within a fortnight to protest the recent fuel price hike by the central governement! Economy takes a toll. On the positive side, hartal is a day for rejuvenation. It is a day when economic rat-race takes a pause, and people spend quality time with their family and friends. They can afford it as all their peers and competition is doing the same! Isn't it a wonderful day?

McCormick & Company Inc has acquired 26% stake in Eastern Condiments Pvt Ltd. The stake is bought for approximately Rs. 163 crores ($35 million) and the deal values Eastern Condiments approximately at Rs. 629 crores ($135 million). McCormick holds 50% stake in AVT McCormick Ingredients Pvt Ltd. AVT is a prominent tea brand in Kerala. Eastern is a leading spices, curry masala and other semi processed package foods brand in Kerala. Their products primarily reaches Keralites across the world. Mr. M.E. Meeran is the chairman of the company. VC Circle  has a detailed report. McCormick must have bigger plans in Kerala and India.

It's tough to run a hotel these days with inflation above 10% and vegetable prices doubling in two years. They have now one more costly item to worry. It's their waste. Hotels in kochi need to bribe corporation staff around Rs.3500 per day to clear and dispose their waste. Out of no choice hotel managements pay this passing a share of this cost to the consumer. Kochi has more waste than it can manage. Recently a housing society dumped their waste inside a government office for not doing their duty. People in Lalur, a place where some wastes are dumped, have suffered for long and is on a protest for redemption. Kalamassery, a major transit point of Kochi, has reached a point of no return. The place is stinking and keeps reminding everyone without fail. Rapid urbanisation and with it lack of professional management of waste is the reason. Each one of us do not take responsibility for wastes that we generate and prefer to pass it to the corporation staff. Solution lie within...

Today my cousin got excited to see her engineering college on the newspaper - an eye grabbing quarter page ad with photo of the building. She proudly announced it to everyone and held it to her chest for every one to see. She started reading loud from the ad and declared quite nonchalantly that some of the claims are lies! A lot says about our educational institutes and claims they make in yet another admission season. Ethics fly off their windows as they see education merely as a business proposition.

A billboard of CIMAR Hospitals claims "Making Babies, Saving Babies, All at one place  Together." Add to that an image of an infant kept on one hand. Probably they want to convey - "we are in the business of making babies. Do you need one?"

Kerala government gives rice for Rs.2/Kg to the public. This is flawed economics as it will only breed incompetent people with minimal productivity. Farmers will suffer at the other side. Paddy farmers will be bargained by the government to source rice at the lowest price. Why foster a generation with incompetence? Let them earn their money and spend part of it for their basic living.

There is a chain of "holistic wellness clinic" in Kerala called "Heal Wellness". I wonder how the name occured. But such is the state of branding in Kerala. The clinic also makes a superlative claim that they are the first holistic wellness clinic in Kerala. Prospective consumers and public deserve much more respect.

Thanks to Amit Verma (India Uncut Blog), I came across this insightful article by Johann Hari: "The dark side of Dubai." All of you who look at Dubai in awe should spare some time to read this. This could be a moment of revelation for you. Please read the article here -  Johann Hari: "The dark side of Dubai." If you need a reason to read it, you may have it below. An Offence That Cannot Be Ignored (via The India Uncut Blog by Amit Varma on 1/25/10) The WTF statement of the week comes from a Dubai cop: The woman confessed that she had sexual intercourse with her fiancé and that she had alcohol. We cannot just ignore such an offence. The woman is question is a British tourist who complained on New Year's Day that she had been raped by a waiter the previous evening. The cops "arrested her after she revealed during questioning that she had drunk alcohol and had sex with her fiancé, with whom she was on holiday." As for the waiter, he's pre...

Speculation abound that a consortium of Muthoot Pappachan Group, Mohanlal, Priyadarshan and few investors from Middle-East would be bidding for an IPL team in the next round. VC Circle has a report here . I find it difficult to figure out their business model considering the diversity of promoters and the interests each would have. An IPL team is more like a business entity, which needs a business model and strategy. And everything revolving around cricket makes it a high risk, high return business. Let us wait to hear more. I can't stop thinking of names...Kerala Kuttans?

Muziris heritage circuit in Kerala is one of the tourist circuits identified by the Ministry of Tourism for large scale promotion. Muziris heritage circuit generates great interest among natives and tourists alike in Kerala. It is expected to be open to tourists this year. Rs.17-crore road/canal development project is planned by the Kerala Government. Artefacts, paintings and documents have been identified to be displayed at the museums. The Muziris heritage circuit would showcase the life and times of the ancient port town and would be an educational experience. Kodugallur, land that once used to have trade contacts with Rome, Greece, China and Persia, was known as Muziris in its hey day. Recently this has been contested by archaeological findings at a nearby place called Pattanam. Muziris, existed till first century AD, was the gateway for various religious faiths like Christianity, Judaism, Islam and others to India. St.Thomas, the apostle of Jesus Christ is b...

Dandelions. A Russian variety of Dandelions could be the new source of rubber. There are researches going on in Germany and US to extract rubber from the plant's sap. If found successful Dandelions could be a better option to produce rubber than traditional rubber tree - Hevea Brasiliensis. Read more about this from The Economist.

GKSF went past with out enticing many shoppers. This was on the expected lines. GKSF lacks leadership commitment and a sound strategy. Strategy part was discussed in an earlier post. To add to that, the event was marketed only by few sub-standard TVCs and outdoor ads. Also there were few occasional claims by various ministers including home minister. I failed to understand the involvement of home minister to declare the event a grand success. Few prize winners announced during the event would have done wonders. The brand GKSF was hijacked by many jewelers in their ads as if the prize money is from them. It is known that GKSF is a government initiative but who is leading and driving the event. Is ministers the right people to drive such an event? Is it such an event that we would not need a full time CEO who would promote the event round the year and across the world? To sum it up, GKSF got a long way to go to prov...