1 / 26

Creation of Wealth

Creation of Wealth. By DR T.H. CHOWDARY Director: Center for Telecom Management and Studies Fellow: Tata Consultancy Services Chairman: Pragna Bharati (intellect India ) Former: Chairman & Managing Director Videsh Sanchar Nigam Limited & Information Technology Advisor,

mora
Download Presentation

Creation of Wealth

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Creation of Wealth By DR T.H. CHOWDARY Director: Center for Telecom Management and Studies Fellow: Tata Consultancy Services Chairman: PragnaBharati (intellect India ) Former: Chairman & Managing Director Videsh Sanchar Nigam Limited & Information Technology Advisor, Government of Andhra Pradesh T: +91(40) 6667-1191(O) 2784-3121® F: +91 (40) 6667-1111 hanuman.chowdary@tcs.com Talk @ BITS Hyd: 5th Sept 2012

  2. Wealth is of two kinds • Intellectual • Material, economic • Intellectual wealth does not diminish. The more you share, the more it grows • Material wealth has limits. We may be satiated but not satisfied. • Material/economic wealth diminishes on consumption • Intellectual wealth can’t be diminished or destroyed. eg. Germany, Japan, after the wars S672_Sept12

  3. Source of all wealth • Nature • Whatever is in the Sun is on earth- 110 elements थो असाक्सौ पुरुषः सोअहमस्मि • Intellect can create wealth even without natural material resources eg: Singapore, Taiwan, South Korea, Japan S672_Sept12

  4. Land & Sea • Adam Smith: Land labour & capital Unless there is a great land mass, there cannot be natural wealth- ores, coal, oil & gas, forests, rivers, mountains Russia, Canada, USA, Brazil, China, India – vast lands • Urbanisation –masses of population • Pressure on land- • Density of population high to reduce commutation costs • Suburban land holders become wealthy by sale of land to Realtors! • Skyscrapers and sub terraneons (Japan & Netherlands) structures S672_Sept12

  5. Factors for wealth creation Labour - Diminishing role Electricity, motor, machines, Robots Eg: Toyota Factory near Tokyo; • 360 Robots, 60 men 1000 cars/day Intellectual “labour” Innovation, invention • Scandinavia Now China too ( to be competitive) • USA- Robotizing to bring back manufacture S672_Sept12

  6. Capital is crucial • Comes from savings • Savings in Banks • Banks lend & invest (Commercial & Investment Banks) • Public Limited company –Great invention – limited liability ; millions of investors - not dividends but capital appreciation • Stock exchanges • Regulators (RBI; SEBI) S672_Sept12

  7. Vision, entrepreneurship, risk & rewards (1) We will make electricity so cheap that only the rich can afford to burn candles. -Thomas Alva Edison (1978) GharGhar Mein Radio GaonGaon Mein Telephone -THC (1997) Hath Hath Mein Telephone; GaonGaon Mein Internet - THC S672_Sept12

  8. Vision, entrepreneurship, risk & rewards(2) • “Genius is one per cent inspiration and ninety nine percent perspiration • “When Sir M.Visveswaraiah saw the Cauvery water falls at Jog ( 1920s) he exclaimed “what a waste?” • When Jamshetji Tata saw the waters of Roha river Roha cascading down he wondered , “All this water from the Western Ghats is wanted. We should harness it to produce hydro electric power”. S672_Sept12

  9. Wealth Creators • Risk-takers • Entrepreneurs • Failures don’t deter • Leaders- Integrators of talents • Andrew Carnegie’s Tomb-stone “Here lies buried a man who knew how to hire people better than himself” • Lee Iacocca: Chrysler Revival S672_Sept12

  10. Tatas & Wealth Creation (1) • Cotton Textile Mills • Nagpur Swadesi • Tata Steel, Sakchi becomes Jemshedpur • Vivekananda Inspires Indian Institute of Sciences (IISc, Bglr) • Steam locomotives for Railways • Trucks • Tata Hydro • Tata Shipping • Tomco –Coconuts (Kerala) • Tata Chemicals • Sea water • Indica & Nano S672_Sept12

  11. Tatas & Wealth Creation (2) • Andhra valley • Western Ghats • Artificial Lake • Air India • Intelligent Grid • Tata Tea • TCS • Taj Hotel S672_Sept12

  12. Some Modern Indian Wealth Creators • Birlas • Mahindra • Godrej • KCP (1930) • Andhra Sugars (MullapudiHarischandra Prasad) • Amara Raja (GallaRamachandra Naidu) • Ambanis • Munjal • Infosys, Wipro, HCL, Infotech…. S672_Sept12

  13. Patriot Industrialists • Ogale Glass works • Dabur • Bengal Chemicals • Birlas, Dalmia’s • Bajaj • VergheseKurein S672_Sept12

  14. Corporate Social Responsibility (CSR) • Indian Institute of Science • TISCO: Free Schools, Hospital, Insurance, Pensions • Tata Trusts • Tata Scholarships (ICS…) • All wealth (dividends) goes to various trusts • Tata Institute of Fundamental Research ( TIFR) • BARC and ISRO • Tata Institute of Social Sciences S672_Sept12

  15. Sharing as an ideal • Sahayagnaprajasrushtvapurovachaprajapathihi Anenaprasavishyadhvameshavahatuishtakamadhuk . – BG 3.10 • Devanbhavayathanenatedevabhavayanthuvah Parasparambhavayanthahasreyaparamavapsyadaha. -BG 3.11 • Ishtanubhogaan hi vodevadasyantheyagnabhavitaha Tairdatthanapradayaibhyoyobhunkthesthenayevasaha -BG 3.12 • -------Bhunjathethvaghampapayepachanthyathmakaranaath . -BG 3.13 S672_Sept12

  16. Sharing as an ideal • Eesavaasyamidamsarvamyatkinchajagatyaamjagat, • Tenatyaktemabhujithaah; • Maagrithahkasyaswith-dhanam. • “Everything in the universe abides in the Supreme Being. Realise this well; realising it cast off the desires that rise in the heart, for example, the thought of possessing what is enjoyed by another. Joy comes only by the giving up of desires and attachments. • (Enjoy by renunciation of and sharing with others of what more is not needed by you; may you not accumulate; whose is this wealth?) • -Isavaasya, Interpretation by Rajaji. • Let us all strive to live in the light of this wisdom. S672_Sept12

  17. Wealth Destroyers • Export of ores • Welfare before wealth • (NREGA, Fee Reimbursement, paavalavaddi, no vaddi, loans waivers…A.Ps profligacy; give –aways (Radios, TVs, grinders, bicycles, shoes, sanitary napkins, tablet PCs, mobile phones, Haj & Jerusalem subsidies; Urdu ghars, shadikhanas; one-Rupee /Kg ; No Rupee-Rice. • Since fiscal 2004 G.O.I spent Rs. 9.12 tln on various subsidies • On NREGA cumulative spend Rs. 1.66 tln • A PURA Hub requires Rs. 600 mln; upgrades 10 to 50 villages • 7000 PURA hubs @ Rs. 4,20,000 cr would create R-Urban areas • Gram-IT is part of it. S672_Sept12

  18. You cannot… “You cannot bring about prosperity by discouraging thrift. You cannot strengthen the weak by weakening the strong. You cannot help the poor by destroying the rich. You cannot establish sound security on borrowed money. You cannot keep out trouble by spending more than you earn. You cannot build character and courage by taking away man’s initiative and independence. You cannot help men permanently by doing for them What they could do for themselves.” -Abraham Lincoln (Source: Freedom First, May 1989) S672_Sept12

  19. Tainted and tattered flag of Socialism (and “secularism”) (1) • Sri NaniPalkhiwala • History will record that the greatest mistake of the Indian republic in the first 50 years of its existence was to make less investment in human resources- education, family planning, nutrition and public health- than in brick and motor dams and factories. • We have too much government and too little administration; too many laws and too little justice; too many public servants and too little public service; too many controls and too little welfare. • Indian liberalisation encounters formidable opposition from three quarters. • The top heavy bureaucracy reluctant to shed its enormous powers • Influential politicians who prefer to let socialism remain the opium of the people and of whom it can be truly said that if ignorance is bliss, they should be the happiest men alive. S672_Sept12

  20. Tainted and tattered flag of Socialism (and “secularism”)(2) • Quite a few Indian businessmen men who are much interested in their own personal prosperity than in the future of the country and who preferred to flourish in the non competitive environment. • These three are the obstructionist forces…India continues to remain the only significant country in the free world to hold aloft the tainted and tattered flag of socialism. • “ We shut our eyes to the fact that socialism is to social justice, what ritual is to religion and dogma is to truth”. • Over taxation corrupted the national character overtly. The nation survived only because the tax system continued to breathe through loopholes and the economy used to breathe through window of tax evasion. S672_Sept12

  21. Socialist’s service to the poor and aamaadmi ( one example) S672_Sept12

  22. Books for Reading (1) • The Reckoning • Vitality in a Business Enterprise: -Frederick R. Kappel • Big Business & Human Values -Theodore V. Houser: Chmn sears Roebuck • The Uncommon Man - Crauford H. Greenwall, President E.Idu Pont de Nemoars & Co • Freeman & The Corporation -Roger M. Blough: Chmn United States Steel Corpn • New Frontiers for Professional Managers -Ralph J. Cardiner : President General Electric Company. S672_Sept12

  23. Books for Reading (2) • How to Win Friends & Influence people – Dale Carnegie • The Human side of Enterprises - Douglas Mcgregor • My years with General Motors – Alfred P Sloan • A Japan which can say “No” to America • Kautilya’sArthaSastra • Are You Listening – Dr T H Chowdary • The Creation of Wealth – R M Lala (The Tatas from 19th to the 21st Century) • Vincent People • Peter Drucker • It Couldn’t be Done - Published by the USIS, New Delhi • Heidi & Alwyn Toffler • The Future Shock • The Third Wave • A new civilisation in the making S669_July2012

  24. Books for Reading (3) • Shantiparva in Mahabharata • Sundara Kanda (Ramayana) – Hanuman to Sita • GitaRahasya by LokamanyaTilak • Bharthrihari’sSubhashitas • Sumathi & VemanaSatakas • Rama CharitaManas – Tulasi Das • Krishnavatara – KM Munshi • Women in the Bible • Life and Times of Jamshedji Tata (For the Love of India by R M Lala) • JRD Tata Letters S669_July2012

  25. Lives of great men all remind us we may make our lives sublime and departing leave behind us foot prints on the sands of time. – Henry Wadsworth Longfellow S672_Sept12

  26. Dhanyawad:Thank You S672_Sept12

More Related