Youthhood!
Unprotected. Uncared. Unnoticed

At an age not old enough to be called adults and at an age not young enough to be called children, the quandary of the juvenile population has been intriguing. Their plight gets compounded by the fact that increasing number of juveniles in India are being associated with delinquent behavior involving personal and social disorganisation.

The Juvenile Justice Act, 1986 defines (after 2000 Amendment) male and female below the age of 18 years, as juveniles. In this susceptible group, the National Crime Record Bureau reports that share of crimes committed by juveniles to total IPC crimes has increased from 0.9% in 2001 to 1.0 % in 2002 & 2003. The same reports also gives a scary analysis of different sections, under which the alleged ‘crimes’ were committed. While arson and kidnapping constituted a significant percentage of the crimes, it were the cases registered under counterfeiting and dacoity that registered a sharp increase of 166.7% and 93.7%, respectively for the years 2002 to 2003. Under Special Local Laws (SLL), the cases registered were more under ‘adult’ sections like Indecent Representation of Women Act and the Explosive Act.

The case of a juvenile delinquent being totally different from the adult criminals, the difference exists in the process, philosophy and methods of treatment. Requiring counselling, care and rehabilitation, the Juvenile Justice System or its procreator, the civil society and the government has failed to nurture the most vulnerable section of Indian population. While poverty, family problems at home, impact of mass media can be reasoned to be the causes, the reformatory or the Borstal Schools have failed to be inspiring. It has been reported that these socalled correctional centers do not even have the basic amenities to meet the standards laid down by the Central Social Welfare Board.

The solution then has to be structured, directed and holistic. And the responsibility for corrections has to be shared both by the government as also by the civil-society.

Post Indian...
The sleep has been a killer...

While the economic reforms in India were initiated with perceptible changes in the banking sector, another important sector which has been remarkable in terms of reach into the rural India as also the savings it generates is left terribly stranded. The mammoth Indian Postal department faces an uphill task in the wake of its failure in modernizing its majority of post-offices.

The department has had a dubious distinction of bringing computerisation in only 0.011% of its 155,837 branches. Including 506 Head Offices, the Postal department has computerized only 1,772 upto March 2004. It is contended that at this pace complete computerisation can only be expected in decades. To make matters worse, it has been reported that though the business volume of speed post has increased from Rs.780 million in 1997-98 to about Rs.3 billion in 2004, its share in the sector has come down drastically to only 10%. More importantly, the Postal department is incurring losses in 24 of the 38 services it offers. Depending on the Central Budget for taking care of its ‘universal social obligations’, this behemoth ironically has the potential to emerge as the power house of future.

With about 89% of branches in rural or semi-urban areas, the postal department also happens to be the largest bank in the country in terms of network, accounts and annual deposits. It is in the mobilisation of these savings through effective modernization & computerisation, which can effectively metamorphose the postal department from a loss making to a profit making agency.

Charity begins abroad...
Negotiations for peace in the island nation needs to look at them

In the ongoing internecine civil war in Sri Lanka, issues related to repatriation of thousands of displaced Tamilians residing in refugee camps (103 in total) in Tamil Nadu and Orissa are oft en ignored. While India bound under Indo-Sri Lanka agreements of 1964, 1974 and 1986 has accepted repatriation and granted citizenship to about 506,000 persons up to December 2005, the Sri Lankans remain non-committal to millions of their Tamil nationals that have crossed the Palk Straits illegally. Apart from causing severe pressure to local employment and demography, these migrations have been a severe drain to the economy. Officially, the Government of India has spent close to Rs.3.5 billion in providing relief.

It is important that the ongoing negotiations for finding lasting solutions for Sri Lankan crisis do not ignore core fundamentals related to the plight of these stranded nationals. They have been for long considered to be the part of the problem, it’s high time when their plight be considered for the solution.

Laws for in-laws
Destruction more than protection

Though the unholy nexus between the marriage and money flourish with aplomb in India, the punitive laws for protecting women have failed on many dimensions. While the horrific numbers of annual dowry deaths continue to climb (NCRB records 6,000 annual dowry deaths), another dimension of terrible misuse of the law is taking its toll. Supreme Court of India named this malaise as ‘legal terrorism’ where Section 498 (a) of the IPC is being maliciously used. Given the stringent nature of the law, the trend is increasing where groom’s family is wrongfully harassed by many unscrupulous women. It has been reported that most of the time almost all of the husband’s family that including elderly grandparents, disabled individuals and even young children have been incarcerated in this. There are estimated 40,000 dowry related cases in courts across India, with an implication of around 5 members of a family in each cases, the cases have led to jailing of about 200,000 people in most cases as undertrials.

While it is nobody's case that women should not be given protection, but there should be a national debate on the cruelty perpetrated by the weaker sex against male population as well. Dowry act in the present format remains loaded against the virtues of equality of law which needs correction as much as anything.

Chauvinist forces
More space required. Give them!

The armed forces of the country fall awfully short when it comes to employing women in their ranks. Indian Navy had women in their ranks only after 1992. The women now form part of their education, logistics, medical and the air traffic control units; but surprisingly, they are neither in the combat units nor can they rise higher in the hierarchy. Indian Air Force similarly employs women in several sectors including flying helicopters and fixed wing aircraft s, but not the fighter aircrafts. In Indian Army, gender equality remains farthest in agenda. Statistically, of the total of 34,000 officers that the Army has, only 933 are women. The Navy has a majestic 100 out of 7,000, while the Air Force has 450 women in their 10,200 officer ranks. It must also be highlighted that women are in general employed only for the short service commission in most of the cases serving a maximum of 14 years.

The standard argument of ‘cultural sensitivity’ that is given for their non inclusion falls flat when women's inclusion into all ranks of Police hierarchy is considered. That reasoning finds few supports even historically, given the rich legacy of women fighters from Razia Sultan to Rani Laxmi Bai Regiment (in the Indian National Army). Needless to say, in changing times, the policy framework reflecting more of chauvinism needs to change.

The show must go on... Will it?

(column by Siddharth Nahata & R. Prasad)

It's a time when 'Radio Fever' is spreading like an epidemic and many private entrepreneurs are trying hard to cash in on the rich forecasts. A time when mass spending on entertainment is on the rise. A time when television, films & radio are all showing promise. And it's in these times that the strategic vision and prowess of Adlabs will be tested to the core.

Video certainly could not kill the radio star. It had just knocked it out cold for a while. Like a cyclopean monster from folklore, the medium is back, bigger and stronger than ever before. The new millennium has witnessed a host of new players entering the battleground with the latest being Anil Ambani-controlled Adlabs Films Ltd. (AFL) which is the largest integrated player in the film industry with operations ranging from co-production & processing to distribution & exhibition. And it's all in sync within the vision of the younger Ambani brother to make it big in the field of entertainment.

The company launched its first FM radio station, baptized as BIG 92.7 FM on September 25, 2006. Unlike its competitors, which are only present in metros and few other Tier II-towns in India, AFL is in fact eyeing a pan-India presence. It has won broadcasting licences for 45 cities and plans to execute all its launches by early-2007. Tarun Katial, COO, Adlabs Radio, elaborates, “We are adopting a two-pronged launch strategy. While metros are ideal to establish brand recognition and recall, the other virgin markets are completely new and fresh to explore...” He further adds that BIG FM's presence will be felt in 1,000 towns and 50,000 villages across India – reaching out to 200 million Indians. But while the sector 'seems' to have gulped down some resurrection potion, is the company committing the blunder of being over-confident? With existing presence in diverse high growth segments, Adlabs could just end up biting more than it can chew.

Lights, Camera, Action!

And while all the hullabaloo surrounds their newly discovered passion for radio, one must not bypass the fact that Adlabs is minting money with its film processing operations (with margins as high as 42-45%). Since the year 2000, the segment has witnessed steady annual growth of 11%, thus giving the company an elephantine market share of 44%. AFL gracefully controls over 80% of West-India's film-processing business and is now also consolidating its position in South India by acquiring Vijaya Labs in Chennai. With more films hitting the bull's eye at the box-office each year, this segment holds incredible opportunity. However, CAGR over the next 3-4 years should be relatively modest at 5-6%.

Then there is the much-talked about film exhibition division, which is the perfect foil for AFL's coffers. Today, it can boast of a healthy chain of 9 multiplexes, thus making it the third-largest film exhibitor after PVR Ltd. and INOX Leisure Ltd. with 67 and 41 screens, respectively. Prospects of the segment's revenue generation ability is driving the company on the expansion highway with Rs.1 billion sidelined for investments to triple its number of screens and total seating capacity to 100 and 36,000 respectively by 2008. Again, where these expansion plans are concerned, the company's move to focus one-third of the expansion in the western region, which is its stronghold. The company is tactically choosing locations where entertainment tax is either exempted or is very nominal.

To follow or not to follow...

The multiplex owners in India are following the path taken by hotels and airlines in the country by slashing down on the frills. PVR Ltd, the leader in films exhibition and one of the biggest competitors for Adlabs, expressed its clear intentions of setting up a string of budget multiplexes across the nation with tickets that would be priced between Rs.40 and Rs.60 called ‘PVR Talkies’. Not surprising though, these theatres are all set to mark their debut in non-metro towns to maintain the premium nature of the PVR brand in the big cities. The question is – will AFL follow suit?

Regarding AFL’s plans in non-metros, Manmohan Shetty, CMD, Adlabs reveals, “Since so many new players have come, it is not only a quality benchmark anymore; it is also a financial benchmark that comes into play. We are having a constraint to not do certain things because there is a constraint as to how much you can invest in one multiplex or on one show or per screen and it is also about what we call a commercial constraint.” AFL would be missing out on a massive opportunity though. With domestic theatrical revenues set to grow at 17% annually to touch Rs.86 billion in 2010 from the current Rs.34 billion according to KPMG analysts, AFL should focus heavily on their exhibition business. AFL's move to tie up with renowned filmmakers like RGV, Ramesh Sippy, Prakash Jha and Vipul Shah for co-production is a step in the right direction. To this, Manmohan Shetty pronounces, “We thought of partnering with filmmakers who have their own ongoing projects and tie-ups...” AFL will be acquiring a majority 51% stake in Synergy Communications Pvt. Ltd. (announced on September 7, 2006), which is known for the popular Kaun Banega Crorepati. This move indicates its intentions for the TV content-production business, which is currently growing at 15% annually and contributed over 60% to total revenues of the Indian entertainment industry in 2005.

The Final Take

All in all, AFL is setting itself up to ride the entertainment boom in India. The best thing that ever happened to AFL is that it became a part of Anil Dhirubhai Ambani Group (ADAG). ADAG plans to take AFL to newer and brighter horizons into DTH, radio, television and others. By being a part of multi-billion group, AFL will never run out of the moolah to fuel its projects. ADAG will also be hoping to unify its telecom & entertainment businesses by providing value added services over Reliance phones or providing a combination of telephone, TV & internet – a total entertainment package.

But Adlabs’ strategy seems to be centred around expansions in diverse segments, which could be at the risk of consolidation in existing businesses, as is exemplified by its reluctance to add multiplexes in the interiors. By doing so, the company risks giving competition sufficient leeway to fill in the gaps and attain formidable strategic strengths. So whether it’s radio, TV, movies or internet, AFL must ensure that it sets itself up for the long term. As we said before, the show must go on.

Not an Easy Bull To Ride

According to the CII & KPMG industry report (Focus 2010 : Dreams to reality), the radio industry in India cumulatively generated Rs.2.5 billion during 2005 and with annual growth hovering around 20%, and the potential to generate Rs.8 billion annually by 2008. There are 21 other private radio channels (like RED FM, Radio Mirchi, Radio City & 95 FM) that have been granted legal operational rights during the past four years. But despite the wave of revival sweeping across this sector, total advertising spends on radio in India still remains a paltry 2%, while according to KPMG analysts, it should have exceeded 5% by now. The share of total advertisement spending by retailers in India is just a minuscule 8%, while it exceeds levels of 70% in the USA – even when it costs just 15% less to advertise over radio (with 60% more efficiency with respect to television). Certainly, many corporates are jumping on to the bandwagon, but few will be able to stand out and survive.

(End of Siddharth Nahata & R. Prasad column)