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Try telling an overseas buyer-or for that matter somebody in India-that your company is ISO 9000 certified. Chances are he'll laugh his head off. Indeed, ISO certification was getting to be a joke. The standards' poor revision of 1994 was as much to blame as corporates that implemented ISO for the sake of getting a quality tag. After more than six years of brainstorming, the International Organisation for Standardisation later this year will issue revisions to ISO 9001 Standards. Among the major changes proposed are withdrawal of ISO 9002 and 9003, and alignment of ISO 9004 with the new ISO 9001. Henceforth, all companies would be certified to ISO 9001 standards only. Also, the revisions reinforce the Plan-Do-Check-Act (PDCA) cycle used by companies that follow the Total Quality Management system. The new ISO 9001 will introduce significant changes in the supply chain terminology. The term ''supplier'' has now been replaced with the word ''organisation'', and the term ''supplier'' will instead be used to describe sub-contractors. Besides, the existing standards have 20 clauses; they will be replaced by just four: Management Responsibility; Resource Management; Product and Service Realisation; and Measurement, Analysis and Improvement. The changes have come none too early. Some problems that ISO 9001 users apparently encountered related to inadequate control on purchasing, a lack of stakeholder responsibility, absence of a benchmarking system, and a preoccupation with documentation rather than performance enhancement. Points out N.S. Narasimhan, 46, a Chennai-based quality consultant: ''The existing standards emphasise compliance more than effectiveness. The revisions will change that.'' The high-point of the revisions will perhaps be the emphasis they place on the role of management in implementing the quality procedures. Aspects like sharing of information on quality-related issues, setting quality objectives at different levels, training of people, monitoring of customer satisfaction and ambient working conditions are spelt out. But as with ISO 9001 of 1994, problems could surface in the new revisions if companies implement the standards for the sake of mere certification. At the end of the day, ISO 9001 is a roadmap to quality. It is up to its users to persist on the road. -R. Sridharan C
O N S U M E R E L E C T R O N I C S Indians know China for its noodles and spicy lamb in hot garlic sauce, not consumer electronics. Ergo, it's hardly surprising that the Chinese consumer electronic companies that are vying for their share in one of the biggest markets of the world are yet to find a firm footing in the country. Chinese home appliances major, Haier, which hasn't even made its debut in the local market is on the verge of breaking up with its Indian partner, Hotline. Says Anil Gupta, 54, Chairman, Hotline: ''We want Hotline Haier to set up its own manufacturing base in India. If Haier is unwilling to do so, we may call off the venture.'' Haier, meanwhile, is contemplating its move. Hotline is the majority partner in the joint venture, owning 70 per cent of it. The company's first range of products, which include refrigerators, washing machines, vacuum-cleaners, microwave ovens, and cooking ranges, were slated for launch late last year. Apparently, the partners haven't been able to resolve their make-or-buy dispute. Incidentally, Haier had earlier tied up with Fedders Lloyd. Another Chinese company, Konka, decided to make products in India, but only after breaking up with its Indian partner. The company is now struggling to find a toehold in the market. But Konka's 34-year-old Senior Vice-President (India), Benjamin Li, says Konka is a long-term player and is positioning itself to become one of the largest players in the next five years. Says Li: ''India will be our biggest market outside China, and we can match the BPLS and Videocons of India in market strength.'' The third Chinese player that is trying to stir up the Indian market is TCL India, which is a joint venture between Baron International and the Chinese consumer electronics major TCL, which owns 51 per cent of the joint venture. It is pricing itself aggressively. For instance, its 21-inch CTV costs anything between Rs 8,490 and Rs 9,990 as compared to Philips 21-inch models, which start from Rs 16,000 and AIWA 21-inch CTV models starting from Rs 12,500. But considering that the Chinese have virtually no brand equity in the consumer electronics market, it will be a long while before they displace the Indian giants in the marketplace. -Jaya Basu B
R A N D W A R S Selling soap can be tough. And when growth slows to a dribble, it can be tougher still. The Rs 450 crore toilet soap market is growing at a piffling 3 per cent a year. And soap marketers are trying every trick in the book to get larger shares of a sluggish market. The name of the game is to offer consumers new benefits and the latest comes from Godrej Soaps, which has launched two new brands that promise fairer skin. Fairglow and Nikhar, the two new Godrej brands, are clearly inspired by the success of fairness creams like FMCG giant Hindustan Lever's 15-year-old Fair and Lovely, which has a 70 per cent share of a market that is currently valued at Rs 600 crore. Godrej's Fairglow contains a bio-extract called Oxy-G that the organisation says is a fairness agent. And just six months after the product was launched, the company is already claiming that it has a 3.5 per cent share of the market. Says Rakesh K. Sinha, 42, General Manager (Marketing), Godrej Soaps: ''The toilet soap market in India has a very high level of penetration and is currently growing at around 3 per cent per annum. Therefore, a marketer needs to look at increasing value growth in this market, which can be tapped through value-added fairness soaps.'' Even industry biggie Hindustan Lever (soap marketshare: 58 per cent) has taken notice. This April, Lever launched its Lux Sunscreen soap, which the company claims has a clinically proven formula that protects skin from darkening. But Godrej and HLL aren't the only ones in the fray. There are other players. The Chennai-based CavinKare has fielded Fairever in the same segment as Fair & Lovely's. Elaborates Neerav Sheth, 31, Analyst, SSKI Finance: ''Lever is always reactive to such kinds of market movements. You never know what will click in the market.'' But Godrej isn't shying away from taking chances. Its other new brand Nikhar, which relies on a desi fairness formula of milk, besan and turmeric, offers yet another skincare remedy. Both Nikhar and Fairglow may have been positioned differently-the former targets fairness and the latter claims to protect skin naturally-but the objective of both is the same: get more out of a stagnating market. But can the fairness tack create a segment to reckon with in the soaps market? It's probably too early to tell. Says SSKI's Sheth: ''Soaps have always been perceived as a hygiene product and consumers will take time to accept the fact that soaps may actually increase fairness.'' But marketers like Godrej and Lever see no harm in trying. -Jaya Basu I
N V E S T M E N T Investing in bonds is safe, but it can be tiring too. Whenever a financial institution or a bank invests in corporate bonds, there are just two ways of getting out: one, wait until the maturity date and cash out, or two, sell them in the debt market. Both have their drawbacks. If one decides to sit it out, then the wait can be as long as five to seven years. Sell it in the debt market, and the price could takes a hit because of a lack of buyers. ICICI has decided to shake things up a bit. For the first time in India, ICICI will launch a new fund called Collateralised Bond Obligation (CBO) under a new company named ICICI Investment Management Company (ICICI-IMC). Broadly, this is how it will work: ICICI's investment in corporate bonds from 26 companies, with varying maturity and interest rates, will be sold to ICICI-IMC which is designed as a close-ended mutual fund. This fund, created as a special purpose vehicle, will securitise the receivables (interest income) from this select pool of bonds and, in turn, sell the units of the fund to institutional investors like banks, FIS, insurance companies and mutual funds. Money received from the investors will be used to buy bonds from ICICI at a market-determined price and the pool of debentures that goes out of ICICI will form the core investment of the fund. ICICI-IMC will issue two classes of units: around Rs 85 crore of primary units and Rs 20 crore of secondary units. The former has been rated LAAA-meaning highest safety-by the rating agency, ICRA, and the latter is not rated. Most of the interest earned from the bonds will be used to pay dividends to the unit-holders, though there is no assured return on the units which will be redeemed after a pre-determined time period. Part of the interest income will form a reserve that will be maintained to pay dividend if there is a shortfall. Since the scheme has got the highest credit rating and dividends are tax free, the instrument is expected to generate good demand. Says M.R. Madhavan, 30, Head of Debt Research in ICICI Securities ''The pool of securities from various companies will evenly spread the risk and make the instrument acceptable.'' The gains to ICICI are that the debt portfolio will go out of its books, cash will start flowing in and this in turn will allow it to make fresh investments in preferred areas. Says Kalpana Morparia, 51, Senior General Manager, ICICI: ''If this new instrument becomes popular, we will be able to constantly churn out our portfolio.'' Help, and be helped. -Dilip Maitra C
A R E E R
C O U N S E L L I N G Tarot sessions in a career mela? That too one promoted by a self-proclaimed hotshot dot.com that hawks new economy jobs? I was nonplussed and so were my colleagues in BT. Worth checking out, we thought. My sense of bafflement only grew as I stepped into the foyer of Taj Palace, Delhi, the venue of 'Fast Trak', described as India's first comprehensive career fair by its organisers JobsAhead.com. Confused PYTs (Pretty Young Things, for the uninitiated) at the reception counter, more confused candidates getting themselves registered, cameras flashing, computer screens gleaming... Where was the fair's touted attraction-Ma Prem Usha, the ex-Osho Commune sanyasin-turned-celebrity tarot card reader and columnist-who has promised to do 'jobscope counselling' for wannabe techie-billionaires, in this two-day job jamboree? A diligent search bears fruit. The lady in question is sipping coffee and making polite chitchat in a quiet, inconspicuous corner. Up close, Ma Prem Usha looks like an elegantly-pulled-together South Delhi matron. No flowing robes, no strings of beads, I feel a twinge of disappointment. Her manner too is most brisk and businesslike. ''I'll do just what I am expected to do for others here, a quick summary. For a detailed reading, you must come to my office,'' she says. I meekly agree. The session, however, is illuminating. With the help of a few sticks of crystal and her deck of cards neatly placed on a piece of black velvet, Ma Prem Usha reels off facts about yours truly. High on creativity (well!), low on routine and discipline (phew, I know!), good for a career in the media (she knew I was a reporter), has an impact on people (positive or negative, she won't tell), has to do a balancing act (which all married professionals with kids do, incidentally), the list is fairly incriminating. Don't get stuck in negative patterns of the past, stay centred, look to the future and fly free, she tells me by way of a spiritual message. How does she do it? With the help of the individual's name, date of birth and her deck of cards, obviously. How does she see herself fitting into a job fair? ''Well the two most important things in a person's life is her emotional and professional life. So why not?'' But for self-professed techies rooted in reason, isn't there a basic dichotomy here? ''None at all, since tarot beats reason and all youngsters, techie or not, need guidance,'' she adds. Hope that's not how the Intels and Microsofts divine the industry's future... -Paroma Roy Chowdhury M
A R K E T I N G What do you do if your customers don't have money to buy your products? Give them some money, of course. That's precisely what a clutch of corporates are doing in rural India, albeit not so directly. Since the idea is to raise the purchasing power of India's poor, companies like Bajaj Auto, Cadbury India, Coco Cola (India), and Kanoria Chemicals and Industries are lending money to self-help groups. This money helps members of such groups to finance their marriages, the odd moped and, perhaps, set up a small shop. Points out Purshotam Raj, 35, Director Programmes, Business and Community Foundation: ''Whether it is a consumption loan or income-generating loan, it helps expand the overall market and the company to market itself.'' Given that future consumption is going to come from villages and smaller towns, companies are taking marketing in these areas seriously. Coca Cola, for instance, has invested Rs 5 lakh around its bottling plant in Ghaziabad to develop the area; while P&G has just finished project ''Drishti'', so called because a part of the revenue from its Whisper brand of sanitary napkins went towards restoring the eyesight of 123 girls. Others, like fast-moving consumer goods giant Hindustan Lever and United Phosphorus are leveraging the network of self-help groups to sell their products. The community, then, gets to keep the retail margin. It's a smart move. Invariably, such groups are run by women, who make the purchasing decision. Notes Shankar Venkateswaran, 43, CEO, Action Aid: ''These groups are in a position to influence local opinion, so why not tap them.'' -Angana Bharali |
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