G.P. BAROOWAH
Tremendous research is going on in western countries for development solar energy as a corollary to electrical power generation in universities. The cities where further power generation is not possible solar power would substitute for conventional power usage ! The demand for power have multiplied in some of the states. But in case immediate generation is not possible dependence on alternative energy sources have become imperative. The educational and Research Institutes and Industrial Houses have collaborated to find out the solution. Can similar exercise be taken up in Assam.?
Habib-Ur Rahman Baruah, have been in America for last four decade working as a Professional Engineer. For the first time he mentioned to me, in a recent discussion, that America is at present in need of vast energy resources and research is going on how to generate electricity out of non conventional energy utilisation. One most important identified areas has been the Solar energy beside, Sea energy and Wind energy. The demand for electrical engineers in USA have become so high, despite recession, that almost all the retired Electrical engineers have been summoned back to join jobs in this sphere. Baruah, himself a retired electrical engineer, of seventy two years has joined back job in power generation. He said that shortage of electricity has initiated lot of research in the field of energy. The experienced electrical engineers may seek opportunity in America who have experience of power generation.The next decade will be the age of energy as was IT few years before, according to him. Another energy project based on sea waves have been initiated by a well known Assamese scientist based in Canada. Recently, Biswadeep Baruah , has joined as CEO of an iit cell for development of new project. Can he take some initiative on this kind of project now ?
I myself saw an experimental project in Los Angeles area where air conditioning plants are operating from the solar energy. This is an experimental project only and further development in the area is expected to make it cost effective. The project engineer with whom I talked expected that when successful the project would bringing down air conditioning cost by 60% from the conventional electricity mode. This is eased the power requirements for lighting and irrigation etc.
"When we tell people we heat water up only to cool it down, they don't get it at first," said David Berokoff, a technology development manager at So Cal Gas. "But all this technology has been around for a while. We're just trying to bring it together so we can get it out to our customers as soon as possible."
The initiative is the latest in a move by SoCal Gas and its parent, Sempra Energy, to wean businesses off gas and push them to use more solar power. For businesses, the technologies could mean substantial savings.
Beyond the potential environmental benefits -- the sun is a nonpolluting, renewable source of energy -- the solar systems undergoing tests could help businesses slash air conditioning costs as much as 60%,we were told.
It was understood that the research project is only 4 months old and solar-powered cooling probably won't reach the gas company's customers for another year or two, but the gas company is already wooing businesses to the rooftop of its Downey research facility.
The Coca-Cola Bottling Co. of Southern California, is observing the tests to see whether such technologies would make sense for several of its bottling plants. "It's a very long-term view, but it's the right view to have." This is where the matter attracted my attention. In the research project both education and business have gone hand in hand. Can this hand holding initiative be started in Guwahati between IIT, Guwahati and AIDC or IOC or Oil India?
The industries in Assam also needs lot of air-conditioning. These can be developed as unit wise smaller projects where air-conditioning are required. Even the entire Capital complex of government of Assam including the residences of ministers, secretaries and officials can be air conditioned if IIT, guawhati can develop a projnect like this .Initial research cost of the project need to be shared between the IIT ,government and OIL.IIT can support with brain and human resources and rest would expected to fund the research.
The gas based research company, in USA , has been checking out competing solar-thermal cooling technologies from two companies to see which would work best on the roofs of warehouses, manufacturing plants and other commercial buildings. Presently no residential building have been included in the plan. But it would extend to Housing estate later.
I also read in an article in LA Times later where it was stated that the rooftop prototype systems, which include the mirrors, pipes and computer-automated solar trackers, cost about $200,000 each -- about the same cost as the entire traditional air conditioning system installed in the 45,000-square-foot Downey building, The researcher hope to slash that price by at least half before it reaches commercial customers.
The research project is comparing systems developed by Sopogy Inc., based in Honolulu, and HelioDynamics of Britain. Both use mirrors to aim the sun's rays at water pipes, and when sun isn't available to heat the water -- at night, for example -- both rely on gas as a backup.The differences lie in the shape and size of the mirrors used and in the placement of the water pipes.
Sopogy uses several 12-foot mirrors that curve upward, reflecting sunshine onto a pipe running just above the center of each mirror. HelioDynamics uses slabs of small, flat mirrors that reflect the sun's rays onto a single pipe above them.
Both systems use computer-automated trackers to tilt the mirrors throughout the day as the sun moves across the sky.
The hot water in both systems is heated to temperatures just under 200 degrees and collected in a storage tank. Then it goes through an absorption chiller that cools the cold water used in the building's fan units.
The solar systems can work alongside existing gas and electric system .Non-solar systems use gas or electricity to heat the hot water before it goes through the chiller.
Nathan Olivarezgiles of LAtimes praised the effort of researchers and stated that
people want renewable sources of energy, but people don't expect a switch that just happens overnight. By using gas or electricity as a backup, customers not having to replace their infrastructure, and customers know they won't have to get into something experimental."
"The promoter gas company is giving researchers a stage to demonstrate what they can do for their customers". Can Similar arrangements be made between Oil India and IIT , guwahati. In case such collaboration succeed it will change the face of Assam. Power is really short in Assam. If solar energy can take care of air conditioning of industry and large industrial estate at much reduced cost then there would be substantial availability of power for common people of Assam.. It helps Government and society tremendously. IIT, guwahati's research has already resulted in low cost cycle rickshaw beside other projects. This energy research project can be given a head start through the good office's of Minister of Industry by organizing a meeting of chairmen of OIL, AIDC and Director of IIT to give concrete shape to such a public -private research project which can give benefit to industry, Government and to society as a whole.
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Friday, November 13, 2009
AGRICULTURE WOULD BE KEY TO ECONOMIC GROWTH
The Deputy Chairman of the planning commission DR. ALHUWALIA once declared that Indian Economic growth would be 6.8% and more during this fiscal.. We refused to agree to the above figure in this column. NOW CHAIRMAN OF THE Prime MINISTER’S ECONOMIC ADVISORY COUNCIL announced ,for the first time on last Monday, that country may expect growth of 6.5% ONLY. This was exactly the figure we predicted as early as JUNE. According to IMF and world bank growth rate should be 5%. The Finance minister Pranab Mukherjee felt that the economic growth would be around 8% and maybe little higher. In our column we disputed such a notion and reiterated that the economic growth of the country would come through social development and agriculture reform. However, he has realised the fact now that only agriculture could be the saviour. only a few days back Mr. Mukherjee advised '"the banks should now enhance credit to employment generating sectors especially to agriculture and micro enterprise" He now realised that to boost economic growth larger farm credit would be essential.. Man Mohan Singh’s government has given definite stress on the agriculture sector but in state like Assam credit is not taken by agriculturist, as they are afraid of stringent repayment terms. In north east micro credit have become successful for the positive role played by Nedfi. This sector coupled with industrial sector may bring about the required growth initially to 6.5% . The agriculture can play a major role in the overall growth of the economy. We still subscribe to this view. IT IS TO BE NOTED THAT IMF AND WORLD BANK FELT India 's growtt during the year would around five percent during this fiscal. but according to us it would be excess of 65 if not 6.5 %.
Why Government of India ’s main policy makers had revised the growth rate now? This is because the contribution of agriculture sector has gone down due to scanty influence of Monsoon. The contribution from agriculture would be negative. it would be less tan -2%. THE INFLATION IS ON RISE DESPITE MORE THAN EXPECTED CONTRIBUTION OF MANUFACTURING SECTOR.The WPI inched to 1.21 percent for the week ended Oct 10, highest since May 30. . The strong build-up has been observed in the category of primary articles. Food articles have shown 14.13 percent inflation during the period.
With the kharif crop coming to the market, food prices will start cooling off. But ‘the impact may not be much significant to offset the increasing prices, the rising commodity prices are a matter of concern for the economy now. We are much more concerned of the supply side. Unless supply side improves, the inflation would not be contained.
The RBI admitted that managing the trade off between the growth and inflation posed a complex policy challenge to it. The extensive financil inclusion in rural areas are much more important compared to urban areas. The development of primary sector noe would automatically improve purchasing power of large community which in turn would develop urban base as was done in punjab.The prices of aluminum have increased almost 23 percent, while sugar prices have gone up nearly 90 percent in the last three months. Crude prices surged nearly 10 percent and the prices of copper have also skyrocketed about 111 percent, the industry lobby said. Though inflation is expected to rise, according to us, the Reserve Bank of India should not 'unwind its easy money policy in a hurry'. rise in interest rates and crowding out of private investments,' we feel.
UNDER THE CICUMSTANCES AGRICULTURE MAY BE THE ONLY SAVIOUR in the long run. The environment must be created so that consumption need to improve. The consumption would improve provided purchasing power of mass could created. So we need to be innovative. availability of finance wouldn't be the only solution. Bank must see that agriculturist and land lords don't hesitate to accept farm credit. The mental block of people of Assam needs to be addressed. In such a bleak situation why not give a chance to private sector to get involve in agriculture sector as a joint partner to land lords on profit sharing basis. Assam must uplift the ban on farming by corporate sector in production of rice and sunflower oil.. It would create employment for Agriculture graduates & other graduates. India’s economic recovery would come through the villages.
.Now, government should encourage joint sector farming, providing power and irrigational facilities to the farmers. The easy financial access alone would not help unless backed by infrastructure. The involvement of would generate employment for educated class.
The developed nations are using laser technology instead of tractors to till the lands. This helps in optimizing the use of various inputs such as water, seeds, fertilizers, etc. The problem is that Indian farmers cannot afford this technology and unless government and corporate sectors comes in support for agricultural infrastructure. The development of agriculture would remain a dream only ,if involvement of corporate sector is denied as a joint sector partners of landless laborer and that of land lords.
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Why Government of India ’s main policy makers had revised the growth rate now? This is because the contribution of agriculture sector has gone down due to scanty influence of Monsoon. The contribution from agriculture would be negative. it would be less tan -2%. THE INFLATION IS ON RISE DESPITE MORE THAN EXPECTED CONTRIBUTION OF MANUFACTURING SECTOR.The WPI inched to 1.21 percent for the week ended Oct 10, highest since May 30. . The strong build-up has been observed in the category of primary articles. Food articles have shown 14.13 percent inflation during the period.
With the kharif crop coming to the market, food prices will start cooling off. But ‘the impact may not be much significant to offset the increasing prices, the rising commodity prices are a matter of concern for the economy now. We are much more concerned of the supply side. Unless supply side improves, the inflation would not be contained.
The RBI admitted that managing the trade off between the growth and inflation posed a complex policy challenge to it. The extensive financil inclusion in rural areas are much more important compared to urban areas. The development of primary sector noe would automatically improve purchasing power of large community which in turn would develop urban base as was done in punjab.The prices of aluminum have increased almost 23 percent, while sugar prices have gone up nearly 90 percent in the last three months. Crude prices surged nearly 10 percent and the prices of copper have also skyrocketed about 111 percent, the industry lobby said. Though inflation is expected to rise, according to us, the Reserve Bank of India should not 'unwind its easy money policy in a hurry'. rise in interest rates and crowding out of private investments,' we feel.
UNDER THE CICUMSTANCES AGRICULTURE MAY BE THE ONLY SAVIOUR in the long run. The environment must be created so that consumption need to improve. The consumption would improve provided purchasing power of mass could created. So we need to be innovative. availability of finance wouldn't be the only solution. Bank must see that agriculturist and land lords don't hesitate to accept farm credit. The mental block of people of Assam needs to be addressed. In such a bleak situation why not give a chance to private sector to get involve in agriculture sector as a joint partner to land lords on profit sharing basis. Assam must uplift the ban on farming by corporate sector in production of rice and sunflower oil.. It would create employment for Agriculture graduates & other graduates. India’s economic recovery would come through the villages.
.Now, government should encourage joint sector farming, providing power and irrigational facilities to the farmers. The easy financial access alone would not help unless backed by infrastructure. The involvement of would generate employment for educated class.
The developed nations are using laser technology instead of tractors to till the lands. This helps in optimizing the use of various inputs such as water, seeds, fertilizers, etc. The problem is that Indian farmers cannot afford this technology and unless government and corporate sectors comes in support for agricultural infrastructure. The development of agriculture would remain a dream only ,if involvement of corporate sector is denied as a joint sector partners of landless laborer and that of land lords.
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INVEST NOW WITH A CLEAR VISION TO EARN
I am writing on investment after a long gap. This is because the share market has been very volatile and up for some time. Any new investor investing in such a market could have burnt their fingers. Many of our readers have been writing to us enquiring whether they should invest now or not. The share market sensex has come down from almost 17,800 to 15,450 on November 3rd. THERE IS A STRONG POSSIBILITY OF MARKET FURTHER GOING DOWN . However it my slide back upward also temporarily. The present trend is apparently bearish. But none can forecast market trend with certainty.
Under the present low market situation I would like to recommend our readers to invest only if they can hold the money invested for atleast four years. The investors who would be in need of money within one or two years they are advised to stay away from share market investment. The investor who does not have any investment in gold may think of buying gold. The gold is going to be scare in the medium term. The RBI has already started buying gold from IMF. However, gold should not form more than 20% of the total portfolio of any person. THE GOLD ETF can be bought by senior citizen if the have holding capacity. The Gold investment might give a decent return within three to four years time.
Many of our readers have asked where they need to invest. I would like to remind all our readers that investment depends on the risk taking capacity of individual persons, as well as their planning of resources for future. So pattern of investment would be different for different persons. If a person has built up his own home already and doe snot have mortgage to pay bank he or she can take risk more than a person who has yet to clear his hose loan. THE AGE OF PERSON ALSO WOULD DETERMIND THE INVESTMENT PATTERN. I don’t advice any of our senior citizen, of more than seventy years of age, to get into equity based investment now. But this the time for our young readers above 28 years of age to get into buying equity provided they can keep on investing under ‘ systematic Investment Plan’ (SIP) . This is a good time to invest for market has come down substantially from high of 17,000 of September. Many investments GURU believe market may tumble down to a low of 12,000. But I do not believe in such calculations because till now no scientific device has been evolved to correctly predict the market behaviors. MY RECOMMENDATION WOULD BE TO INVEST Now under SIP atleast for two three years and hold the investment atleast for three to four years.
A few senior citizens have asked whether they should desist from entering share market at all. MY VIEWS ARE CLEAR THAT SENIOR CITZEN CAN ENTER THE MARKET PROVIDED THE HAVE EXPERIECE OF MARKET FLUCTUATION AND HAVE HIGH RISK TAKIG CAPACITY. SENIOR CITIZEN SHOULD ENTER INTO GOVERNMENT OF INDIA’S SENIOR CITIZEN SAVIBG SCHEME (SCSS) WHERE even now returns are 9%. The maximum limit of investment is 15lakh. The interest of BANK FIXED DEPOSIT, FOR THREE TO FIVE YEARS PERIOD, IS AROUND 7.25% TO 7.50% ONLY. At present not only equity is doing badly but debt and income funds are also not doing well. SO it would be appropriate to hold the wealth with you, and invest slowly with a clear vision for future, after proper study and planning. The Senior citizen can subscribe balance funds also.
Many readers are asking whether they should invest in mutual fund or in stock. I have explained this issue number of times. Yet I would explain my views once again as lot of persons are asking the question. Please do not enter share market just because your neighbour have done so and have minted money. Before entering the share market ask yourself whether if you have time to study market fluctuations. Do you understand macro and micro economic values? The most people do not have patience to study and to follow up the turn and twist of market. IF you do not have expertises avoid share market and go through the route of mutual funds first. When you get experienced in mutual fund you can get into share market after studying market behaviors from reputed news papers, financial journals etc or through your financial advisors. One thing is sure if you have patience and capacity withstands risk this is the time TO enter market through SIP. A TIME WILL PERHAPS COME, AFTER FOUR YEARS OR SO, WHEN YOU WOULD BE ABLE TO CONGRATLATE YOURSELF FOR TAKIG THE RIGHT DECISION NOW.
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Under the present low market situation I would like to recommend our readers to invest only if they can hold the money invested for atleast four years. The investors who would be in need of money within one or two years they are advised to stay away from share market investment. The investor who does not have any investment in gold may think of buying gold. The gold is going to be scare in the medium term. The RBI has already started buying gold from IMF. However, gold should not form more than 20% of the total portfolio of any person. THE GOLD ETF can be bought by senior citizen if the have holding capacity. The Gold investment might give a decent return within three to four years time.
Many of our readers have asked where they need to invest. I would like to remind all our readers that investment depends on the risk taking capacity of individual persons, as well as their planning of resources for future. So pattern of investment would be different for different persons. If a person has built up his own home already and doe snot have mortgage to pay bank he or she can take risk more than a person who has yet to clear his hose loan. THE AGE OF PERSON ALSO WOULD DETERMIND THE INVESTMENT PATTERN. I don’t advice any of our senior citizen, of more than seventy years of age, to get into equity based investment now. But this the time for our young readers above 28 years of age to get into buying equity provided they can keep on investing under ‘ systematic Investment Plan’ (SIP) . This is a good time to invest for market has come down substantially from high of 17,000 of September. Many investments GURU believe market may tumble down to a low of 12,000. But I do not believe in such calculations because till now no scientific device has been evolved to correctly predict the market behaviors. MY RECOMMENDATION WOULD BE TO INVEST Now under SIP atleast for two three years and hold the investment atleast for three to four years.
A few senior citizens have asked whether they should desist from entering share market at all. MY VIEWS ARE CLEAR THAT SENIOR CITZEN CAN ENTER THE MARKET PROVIDED THE HAVE EXPERIECE OF MARKET FLUCTUATION AND HAVE HIGH RISK TAKIG CAPACITY. SENIOR CITIZEN SHOULD ENTER INTO GOVERNMENT OF INDIA’S SENIOR CITIZEN SAVIBG SCHEME (SCSS) WHERE even now returns are 9%. The maximum limit of investment is 15lakh. The interest of BANK FIXED DEPOSIT, FOR THREE TO FIVE YEARS PERIOD, IS AROUND 7.25% TO 7.50% ONLY. At present not only equity is doing badly but debt and income funds are also not doing well. SO it would be appropriate to hold the wealth with you, and invest slowly with a clear vision for future, after proper study and planning. The Senior citizen can subscribe balance funds also.
Many readers are asking whether they should invest in mutual fund or in stock. I have explained this issue number of times. Yet I would explain my views once again as lot of persons are asking the question. Please do not enter share market just because your neighbour have done so and have minted money. Before entering the share market ask yourself whether if you have time to study market fluctuations. Do you understand macro and micro economic values? The most people do not have patience to study and to follow up the turn and twist of market. IF you do not have expertises avoid share market and go through the route of mutual funds first. When you get experienced in mutual fund you can get into share market after studying market behaviors from reputed news papers, financial journals etc or through your financial advisors. One thing is sure if you have patience and capacity withstands risk this is the time TO enter market through SIP. A TIME WILL PERHAPS COME, AFTER FOUR YEARS OR SO, WHEN YOU WOULD BE ABLE TO CONGRATLATE YOURSELF FOR TAKIG THE RIGHT DECISION NOW.
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Tuesday, October 27, 2009
RANJAN DAS : A WIZARD OF CORPORATE SKY
Ranjan Das, Managing Director of SAP INDIA LTD is no more ! He was 42 years old and considered, by many Corporate Gurus, as the ‘Wizard of the Business Management”. His passing away has created a void in the world of international business. The obituary of Ranjan appeared in National and International electronic & print media all over the world including The WALL Street Journal to Economic Times to quote a few. Assam remained mute spectator to this sad incident, perhaps, in agony; no Assamese knew how to react! He succumbed to heart attack soon after the morning work up on 21st October, at his residence in Bombay.
Ranjan was an energetic boy from Guwahati, Assam, with a determined dream in his eyes. He was born and raised initially at Guwahati by his middle class parent from Uzanbazar. His father was an Assistant Director of Industries. Ranjan had his initial schooling in Guwahati and later studied in Indore and Delhi. He graduated from MIT and did his MBA from Harvard Business School during his mid twenties, all on scholarship from both the well-known university itself.
When he died on October 21st he was only 42 years old. Ranjan’s meteoric rise was a story of success of will power, of Assamese middle class, over money. He always dreamt big. He was restless to achieve his dream. Rajan was selected as the Managing Director and CEO of SAP India Ltd., an international company, promoted by five Germans working once for IBM. Today IBM is one of their licensee in ERM business. Ranjan joined the group eight years ago as its Senior vice president when he was only 34 years old. He had a meteoric rise and within four years he headed his department in USA. On 2007 he was selected to head the organization in INDIA when he was only 39 years old.. A very few Indian has been able to achieve such a distinction in international arena of high business. SAP is the world’s greatest ERP company. Today, IBM, Price water house, TCS, WIPRO even Infosys are their licensees. HCL has joined the bandwagon too.
Ranjan came to India in JULY 2007 and created a niche in the business world. It is an accepted fact that SAP became one of the greatest success stories of Asia during last two years of his leadership. He could defy recession. WHEN MANY COMPANIES were STRUGGLING HARD DURING THIS PERIOD HE took SAP to a great height. Every business head were admitting superb business sense of Ranjan. Ranjan was a fitness freak too. He used to run five miles a day, used work up at gymnasium every morning to keep him fit. He was a fit person alright. Last year he participated in a cross country race in Chennai. Alas, his fitness manias brought him down and he died just after arriving home from gymnasium down below of his apartment. Hearing the news, his mother, at Guwahati, was stunned and devastated in such a way that she could not even manage to visit Bombay to attend the last right of her eldest son.
With his huge success in India, Ranjan was considered to be the next CEO of world wide SAP. If he would have survived the heart attack he would have been the first world leader of business from Assam.
Alas! Ranjan’s death was a misfortune for ASSAM nay to Indian middle class rise. He would have taken professional skill to a rarefied height of international success.
I met Ranjan way back in the later part of eighty when he came to see me seeking my help when his American visa was rejected due to miss understanding of a clause in his i-20. Ron Lorton was then the Console General in Kolkata. During our discussion the miss interpretation was cleared and visa was granted to Ranjan. The MIT offered Ranjan full fees to pursue his studies leading to bachelor degree in computer science. Ranjan studied for full four years and came out with flying colours. After a brief work in Oracle he tried and obtained a scholarship from HARVARD for MBA. He came out with flying co lour and founded a company. He named it “Pataki net work.com.” His dream was not fulfilled. He joined back Oracle. Achieved greater success. German Bosses of SAP were observing him. They gave him an offer which he could not refuse for he wanted to fulfill fill his dream. Ranjan always felt that a Middle class Assamese is not inferior to anyone in the world. He wanted to prove it by his hard and dedicated work. He alwys felt to be a topper, is not important but sincerity of purpose, devotion and hard work are vital for success in life or in death. He strived to achieve that dream. He was successful too. He felt four hours sleep is good enough for a young man. HE hardly slept, mostly dreamt, worked and exercised. Perhaps HE PROVED HIMSELF WRONG. He needed more sleep to ward off his stress.
Ranjan has remained a symbol of empowerment to new generation. From a primary and high school of Guwahti, secondary school of indore he showed how a middle class boy can get admission in MIT and HARVARD without having a penny of his own. In his entire dream and dedicated work it was his lovely wife RUPA contributed most. It was Rupa who took control of entire home affairs raising two boys and agreed to relocate from Bay area, for the sake of his dream, to India. Behind every successful man there remains a lady. Rupa fulfilled her responsibilities with pleasure. She was a journalist herself. She will miss him most.
Ranjan was a great person who loved his state most, named his company in USA with Assamese name. His dream to make ASSAM known for professional leadership remained unfulfilled. Hope someone from Assam will fulfill his dream in future! Once in Boston, accepting his hospitality, I asked him ‘who inspired you most to dream great?’ Without batting an eyelid he replied “It was my Mother who inspired me to dream and it was Rupa who tried to transform it to reality”. Today, Ranjan is no more, but his legacy continues to inspire young boys from Assam to dream… Today we salute to Ranjan’ s indomitable spirit. Let his soul rest in peace.
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Ranjan was an energetic boy from Guwahati, Assam, with a determined dream in his eyes. He was born and raised initially at Guwahati by his middle class parent from Uzanbazar. His father was an Assistant Director of Industries. Ranjan had his initial schooling in Guwahati and later studied in Indore and Delhi. He graduated from MIT and did his MBA from Harvard Business School during his mid twenties, all on scholarship from both the well-known university itself.
When he died on October 21st he was only 42 years old. Ranjan’s meteoric rise was a story of success of will power, of Assamese middle class, over money. He always dreamt big. He was restless to achieve his dream. Rajan was selected as the Managing Director and CEO of SAP India Ltd., an international company, promoted by five Germans working once for IBM. Today IBM is one of their licensee in ERM business. Ranjan joined the group eight years ago as its Senior vice president when he was only 34 years old. He had a meteoric rise and within four years he headed his department in USA. On 2007 he was selected to head the organization in INDIA when he was only 39 years old.. A very few Indian has been able to achieve such a distinction in international arena of high business. SAP is the world’s greatest ERP company. Today, IBM, Price water house, TCS, WIPRO even Infosys are their licensees. HCL has joined the bandwagon too.
Ranjan came to India in JULY 2007 and created a niche in the business world. It is an accepted fact that SAP became one of the greatest success stories of Asia during last two years of his leadership. He could defy recession. WHEN MANY COMPANIES were STRUGGLING HARD DURING THIS PERIOD HE took SAP to a great height. Every business head were admitting superb business sense of Ranjan. Ranjan was a fitness freak too. He used to run five miles a day, used work up at gymnasium every morning to keep him fit. He was a fit person alright. Last year he participated in a cross country race in Chennai. Alas, his fitness manias brought him down and he died just after arriving home from gymnasium down below of his apartment. Hearing the news, his mother, at Guwahati, was stunned and devastated in such a way that she could not even manage to visit Bombay to attend the last right of her eldest son.
With his huge success in India, Ranjan was considered to be the next CEO of world wide SAP. If he would have survived the heart attack he would have been the first world leader of business from Assam.
Alas! Ranjan’s death was a misfortune for ASSAM nay to Indian middle class rise. He would have taken professional skill to a rarefied height of international success.
I met Ranjan way back in the later part of eighty when he came to see me seeking my help when his American visa was rejected due to miss understanding of a clause in his i-20. Ron Lorton was then the Console General in Kolkata. During our discussion the miss interpretation was cleared and visa was granted to Ranjan. The MIT offered Ranjan full fees to pursue his studies leading to bachelor degree in computer science. Ranjan studied for full four years and came out with flying colours. After a brief work in Oracle he tried and obtained a scholarship from HARVARD for MBA. He came out with flying co lour and founded a company. He named it “Pataki net work.com.” His dream was not fulfilled. He joined back Oracle. Achieved greater success. German Bosses of SAP were observing him. They gave him an offer which he could not refuse for he wanted to fulfill fill his dream. Ranjan always felt that a Middle class Assamese is not inferior to anyone in the world. He wanted to prove it by his hard and dedicated work. He alwys felt to be a topper, is not important but sincerity of purpose, devotion and hard work are vital for success in life or in death. He strived to achieve that dream. He was successful too. He felt four hours sleep is good enough for a young man. HE hardly slept, mostly dreamt, worked and exercised. Perhaps HE PROVED HIMSELF WRONG. He needed more sleep to ward off his stress.
Ranjan has remained a symbol of empowerment to new generation. From a primary and high school of Guwahti, secondary school of indore he showed how a middle class boy can get admission in MIT and HARVARD without having a penny of his own. In his entire dream and dedicated work it was his lovely wife RUPA contributed most. It was Rupa who took control of entire home affairs raising two boys and agreed to relocate from Bay area, for the sake of his dream, to India. Behind every successful man there remains a lady. Rupa fulfilled her responsibilities with pleasure. She was a journalist herself. She will miss him most.
Ranjan was a great person who loved his state most, named his company in USA with Assamese name. His dream to make ASSAM known for professional leadership remained unfulfilled. Hope someone from Assam will fulfill his dream in future! Once in Boston, accepting his hospitality, I asked him ‘who inspired you most to dream great?’ Without batting an eyelid he replied “It was my Mother who inspired me to dream and it was Rupa who tried to transform it to reality”. Today, Ranjan is no more, but his legacy continues to inspire young boys from Assam to dream… Today we salute to Ranjan’ s indomitable spirit. Let his soul rest in peace.
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Thursday, September 24, 2009
Whether buying of gold makes sense now?
During last few months I am flooded with a question from our readers whether should they buy Gold or Gold ETF. I am really surprised to find that so many persons have been rushing to buy Gold now a days. Gold have been favourite of human being from time immemorial. In fact Indian buys and holds maximum quantity of gold. Indian uses gold in ornaments during the wedding. Fashionable persons were gold jeweleries to make style statement. Yet most of the people uses it as the security for life during the financial crisis.
The birth of GOLD ETF emerged out of this sense of secuirty for life. The orld monetary system revolves round the GOLD standard. Nobdoy knows actually how many tons of Gold are kept in the FORTKNOX of USA but i the belief that works out like miracle. Entire monetary system revolve around the Gold. Recently IMF had recommended that countries of the world can sell Gold to combate recession. It is expected that GOLD price may come down when actual sell of Gold takes place. But according to some economist in the next fifteen years the value of Gold would go up many fold. In that pre supposition value of Gold is going up slowly from now onwards. So whether people should buy Gold or GOLD ETF ?
According to me if someone wants to make jeweleary for ewedding then it would be prudent to buy Gold. But it people wants to make an investment out of Gold then it is better to buy Gold ETF. What is GOLD ETF? Who started it? Is is worth while to buy ETF rather the Gold Metal? These are the questions need to be answaeered now.
Exchange traded funds (ETFs)were first introduced on the Toronto, Canada, Stock Exchange around the early '90s. They were then introduced in to the US and other markets during the 90s. in India Gold ETF was started during Twentyfirst century. What is the meaning of GOLD ETF fund?
A simplified definition would be: An exchange traded fund has funds and stocks in one product and trade is made on the particular fund. Prior to ETFs, stocks and funds, were traditionally kept separate to reflect liquidity issues.
The purpose of an ETF is to be able to invest in the growth of an industry or even commodity that was not easily available to the market prior to ETFs.There are certain inherant benefit of ETF. Those are:flexibility in the timing of purchases and sales. No taxes involves in ETF if investment is held for more than a year. However there are cetain disadvantage that there is no control of thebuyers of ETF over the activities or the content of the ETF. There is no gurantee that ETF buyer would own real Gold metal.The i9nvestor cannot redeem gold or take delivery of the gold. They can ofcourse get Cash equivalent to value of market based gold. To buy ETF there is hidden cost broker but that is minimal . It is even lowers than MFund cost. The unit reflect the price of actual price of London Bullion market. The greatst advantage is ETF is safe and there no problem of storage and cannot be sold any day when market is open.Once you have a brokerage account you can buy Gold ETF by placing an order like a normal stock order to buy listed Gold ETF. Most of the ETF are listed only on NSE. Unfortunately, BSE does not have any Gold ETF listed on it.
Gold EFT are fast becoming a rage in India. One reason attributed to its popularity could be its stellar performance in a relatively subdued market conditions.
It is a wise decision to allocate just a small portion of your portfolio to gold ETFs. Gold ETFs should not be looked at as a mainstream investment. Currently, there are six gold ETFs operating in the market and they are all alike. They are structured in a way that all generate same return. The NAV of all funds should be similar as per the market price of the gold metal .All ETF funds charge one percent expense. So any Gold ETF is virtually cost same and returns are also same.
When first introduced in India, many were skeptical about its relevance and suitability in Indian markets, however increasing volumes and new scheme launches(Quantum, SBI) indicate its growing acceptance in a naive market like India. It is a complex financial instrument. It involves many different entities apart from usual fund managers who manage the scheme. However, its has its own limitations since it is listed on exchanges.
Many people are unaware of ways to buy a GOLD ETF.
You need a Demat account along with broker who is a member of NSE to buy a Gold ETF. How much investment a persons should make in Gold or Gold ETF?
Any investopr should not invest al their disposable income in one basket. The money to be invested should be distributed. A persons of forty years age as the thumb rule goes should invest 60% in equity 20% in Gold ETF and 20% in Debt fund or FD( including PPF and bank saving acount). Investors some time make mistake of high investment in Gold ETF as they find when Dollar value goes down Gold Value goes up. But experience says nothing provide better return in long run than (1) work of art,(2) equity,(3) house and then only(4) Gold or Gold ETF. The investor should have gold ETF in their folio but not in preference to equity,and housing . The Gold ETF is good for creation of Wealth butnot for running their family expenses.
To hedge against Financial Collapse buying physical Gold is good if you have secured place to store.In a situation of great financial crisis GOLD ETF and share of Gold mining comapnies would never help . What should be done now?
Buy Gold or Gold ETF on DIP( not share of manufacturing comoanies) and keep it for for long term. But beaware gold should be a minor part of your portfolio and not the whole of your portfolio.
------------------------------------------------------------------------
The birth of GOLD ETF emerged out of this sense of secuirty for life. The orld monetary system revolves round the GOLD standard. Nobdoy knows actually how many tons of Gold are kept in the FORTKNOX of USA but i the belief that works out like miracle. Entire monetary system revolve around the Gold. Recently IMF had recommended that countries of the world can sell Gold to combate recession. It is expected that GOLD price may come down when actual sell of Gold takes place. But according to some economist in the next fifteen years the value of Gold would go up many fold. In that pre supposition value of Gold is going up slowly from now onwards. So whether people should buy Gold or GOLD ETF ?
According to me if someone wants to make jeweleary for ewedding then it would be prudent to buy Gold. But it people wants to make an investment out of Gold then it is better to buy Gold ETF. What is GOLD ETF? Who started it? Is is worth while to buy ETF rather the Gold Metal? These are the questions need to be answaeered now.
Exchange traded funds (ETFs)were first introduced on the Toronto, Canada, Stock Exchange around the early '90s. They were then introduced in to the US and other markets during the 90s. in India Gold ETF was started during Twentyfirst century. What is the meaning of GOLD ETF fund?
A simplified definition would be: An exchange traded fund has funds and stocks in one product and trade is made on the particular fund. Prior to ETFs, stocks and funds, were traditionally kept separate to reflect liquidity issues.
The purpose of an ETF is to be able to invest in the growth of an industry or even commodity that was not easily available to the market prior to ETFs.There are certain inherant benefit of ETF. Those are:flexibility in the timing of purchases and sales. No taxes involves in ETF if investment is held for more than a year. However there are cetain disadvantage that there is no control of thebuyers of ETF over the activities or the content of the ETF. There is no gurantee that ETF buyer would own real Gold metal.The i9nvestor cannot redeem gold or take delivery of the gold. They can ofcourse get Cash equivalent to value of market based gold. To buy ETF there is hidden cost broker but that is minimal . It is even lowers than MFund cost. The unit reflect the price of actual price of London Bullion market. The greatst advantage is ETF is safe and there no problem of storage and cannot be sold any day when market is open.Once you have a brokerage account you can buy Gold ETF by placing an order like a normal stock order to buy listed Gold ETF. Most of the ETF are listed only on NSE. Unfortunately, BSE does not have any Gold ETF listed on it.
Gold EFT are fast becoming a rage in India. One reason attributed to its popularity could be its stellar performance in a relatively subdued market conditions.
It is a wise decision to allocate just a small portion of your portfolio to gold ETFs. Gold ETFs should not be looked at as a mainstream investment. Currently, there are six gold ETFs operating in the market and they are all alike. They are structured in a way that all generate same return. The NAV of all funds should be similar as per the market price of the gold metal .All ETF funds charge one percent expense. So any Gold ETF is virtually cost same and returns are also same.
When first introduced in India, many were skeptical about its relevance and suitability in Indian markets, however increasing volumes and new scheme launches(Quantum, SBI) indicate its growing acceptance in a naive market like India. It is a complex financial instrument. It involves many different entities apart from usual fund managers who manage the scheme. However, its has its own limitations since it is listed on exchanges.
Many people are unaware of ways to buy a GOLD ETF.
You need a Demat account along with broker who is a member of NSE to buy a Gold ETF. How much investment a persons should make in Gold or Gold ETF?
Any investopr should not invest al their disposable income in one basket. The money to be invested should be distributed. A persons of forty years age as the thumb rule goes should invest 60% in equity 20% in Gold ETF and 20% in Debt fund or FD( including PPF and bank saving acount). Investors some time make mistake of high investment in Gold ETF as they find when Dollar value goes down Gold Value goes up. But experience says nothing provide better return in long run than (1) work of art,(2) equity,(3) house and then only(4) Gold or Gold ETF. The investor should have gold ETF in their folio but not in preference to equity,and housing . The Gold ETF is good for creation of Wealth butnot for running their family expenses.
To hedge against Financial Collapse buying physical Gold is good if you have secured place to store.In a situation of great financial crisis GOLD ETF and share of Gold mining comapnies would never help . What should be done now?
Buy Gold or Gold ETF on DIP( not share of manufacturing comoanies) and keep it for for long term. But beaware gold should be a minor part of your portfolio and not the whole of your portfolio.
------------------------------------------------------------------------
THE IMPACT OF DIRECT TAX CODE ON COMMON PEOPLE
The Finance Minister recently announced the proposed Direct Tax Code effective April 2011. The code aims at a comprehensive reform in the sphere of personal and corporate taxation. We would however discuss the impact of the code on common people. To safe guard the interest of business, industry and workmen there are number of chambers of commerce and Trade Unions but for common self employed people and retired people there are none. The Code is open for Public discourse hence it should be debated, discussed and recommendations need to be sent to finance Ministry.
There is a great difference between" Code" and the "ACT". The government is trying to bring in Direct Tax Code" instead of present system of "Tax under Finance Act".
.The Code would be permanent affairs like "Cr P C" or "I PC". Once tax act is converted into a code it would generally not be necessary to introduce changes every year along with budget. This is a reform which the government wants to bring in for the good of the people. The code has proposed no change in the exemption limit of the personal tax. It remains 1,60000 for men,1,90,000 for women and 2,40,000 for senior citizen. Yet percentage of taxation has been reduced up to income of Rs.Ten lakh.
Prima facie, the tax liability will reduce significantly as the draft code proposes to tax incomes up to Rs 10 lakh at 10%, that between Rs 10 lakh and Rs 25 lakh at 20% and sum in excess of that at 30%. Now people pay 10% tax only if his income is less than Rs Three lakh. A person drawing Rs 10 lakh now pays Rs 2.11 lakh as tax. If Code is implemented he would pay tax amounting to Rs 84,000/- only. Is it not really good?
But all deduction now under 80 c will vanish as it is available now except for a few like new pension schemes, LIC etc! This means death nails on small saving schemes. However deduction under 80 C will be enhanced from Rs one lakh to Three lakh. This allowance would surely help generation next. But the exemption on retirement benefits would vanish. The retirement savings will become taxable on withdrawal, as the draft code has proposed to usher in exempt-exempt-tax (EET) regime. The PPF and PF will loose all its glamour and tax benefit.
For younger Home owner there is a bad news too, the deduction of Rs 1.5 lakh allowed on interest paid on home loans appears set to be scrapped. There is no mention of such a deduction being allowed in the draft code. Young people will not get tax benefit.
On implementation of the code all perks would considered part of the gross salary for the purpose of taxation. The impact of that on tax liability of an individual will be known only when the rules are prescribed by the income-tax department at a later date.
But there would be equity in the tax system both vertically and horizontally across all sectors.. The tax treatment of the perks enjoyed by the government employee and the private sector employee will be the same. Till now government sector was in advantage!
It has also proposed that benefits such as gratuity payment made to employees on change of jobs will be allowed tax exemption only if it is invested in a retirement fund.
The most significant reform would be to bring in the EET regime for all approved provident funds, approved superannuation funds, life insurance and New Pension System trust from April 1, 2011 . The PF and PPF were under EEE system now. This benefit will vanish. The amount would be taxed on the year of withdrawal. This would hurt middle class and specially retired lot.
However, the proposed code provides that the withdrawal of any accumulated balance as on March 31, 2011 , from the specified instruments such as PPF will not be subject to tax. The senior citizen should not withdraw amount in a hurry to save tax. Because, where ever they invest the interest would be taxed. The money in PPF should be kept there itself, if possible, as the interest earned would be exempted from tax. When ever emergent requirement occurs then only it should be taken out after paying tax .In that event tax incidence would be much lower. Of course, the rollover from one exempt fund to another fund will not be subject to tax. This means from PF or PPF you can transfer it to NSC and NPS without attracting tax...
The code has proposed to continue with other deductions such as medical insurance premium, medical treatment or maintenance of disabled dependent, treatment for specified diseases for self and dependents, for the handicapped, interest on loan taken for higher education, rent paid for residence, donations to certain non-profit organisations and specified institutions and tuition fees for children.
The long term capital gain tax on equity based instrument was exempt from Taxes till now. But if code is approved it would be taxed like short term capital gains. This would affect the sentiments of investors. Now mutual fund investor would prefer to invest in dividend mode for the dividend would remain exempt from tax.
It appeared that for middle class two things would adversely effect. The taxation on withdrawal of PPF and PF and withdrawal of long term capital gains tax. The code was released for Public response. It would not be wise to sleep over it. Posterity would blame if present generation do not participate in such reform process for common people
-----------------------------------
There is a great difference between" Code" and the "ACT". The government is trying to bring in Direct Tax Code" instead of present system of "Tax under Finance Act".
.The Code would be permanent affairs like "Cr P C" or "I PC". Once tax act is converted into a code it would generally not be necessary to introduce changes every year along with budget. This is a reform which the government wants to bring in for the good of the people. The code has proposed no change in the exemption limit of the personal tax. It remains 1,60000 for men,1,90,000 for women and 2,40,000 for senior citizen. Yet percentage of taxation has been reduced up to income of Rs.Ten lakh.
Prima facie, the tax liability will reduce significantly as the draft code proposes to tax incomes up to Rs 10 lakh at 10%, that between Rs 10 lakh and Rs 25 lakh at 20% and sum in excess of that at 30%. Now people pay 10% tax only if his income is less than Rs Three lakh. A person drawing Rs 10 lakh now pays Rs 2.11 lakh as tax. If Code is implemented he would pay tax amounting to Rs 84,000/- only. Is it not really good?
But all deduction now under 80 c will vanish as it is available now except for a few like new pension schemes, LIC etc! This means death nails on small saving schemes. However deduction under 80 C will be enhanced from Rs one lakh to Three lakh. This allowance would surely help generation next. But the exemption on retirement benefits would vanish. The retirement savings will become taxable on withdrawal, as the draft code has proposed to usher in exempt-exempt-tax (EET) regime. The PPF and PF will loose all its glamour and tax benefit.
For younger Home owner there is a bad news too, the deduction of Rs 1.5 lakh allowed on interest paid on home loans appears set to be scrapped. There is no mention of such a deduction being allowed in the draft code. Young people will not get tax benefit.
On implementation of the code all perks would considered part of the gross salary for the purpose of taxation. The impact of that on tax liability of an individual will be known only when the rules are prescribed by the income-tax department at a later date.
But there would be equity in the tax system both vertically and horizontally across all sectors.. The tax treatment of the perks enjoyed by the government employee and the private sector employee will be the same. Till now government sector was in advantage!
It has also proposed that benefits such as gratuity payment made to employees on change of jobs will be allowed tax exemption only if it is invested in a retirement fund.
The most significant reform would be to bring in the EET regime for all approved provident funds, approved superannuation funds, life insurance and New Pension System trust from April 1, 2011 . The PF and PPF were under EEE system now. This benefit will vanish. The amount would be taxed on the year of withdrawal. This would hurt middle class and specially retired lot.
However, the proposed code provides that the withdrawal of any accumulated balance as on March 31, 2011 , from the specified instruments such as PPF will not be subject to tax. The senior citizen should not withdraw amount in a hurry to save tax. Because, where ever they invest the interest would be taxed. The money in PPF should be kept there itself, if possible, as the interest earned would be exempted from tax. When ever emergent requirement occurs then only it should be taken out after paying tax .In that event tax incidence would be much lower. Of course, the rollover from one exempt fund to another fund will not be subject to tax. This means from PF or PPF you can transfer it to NSC and NPS without attracting tax...
The code has proposed to continue with other deductions such as medical insurance premium, medical treatment or maintenance of disabled dependent, treatment for specified diseases for self and dependents, for the handicapped, interest on loan taken for higher education, rent paid for residence, donations to certain non-profit organisations and specified institutions and tuition fees for children.
The long term capital gain tax on equity based instrument was exempt from Taxes till now. But if code is approved it would be taxed like short term capital gains. This would affect the sentiments of investors. Now mutual fund investor would prefer to invest in dividend mode for the dividend would remain exempt from tax.
It appeared that for middle class two things would adversely effect. The taxation on withdrawal of PPF and PF and withdrawal of long term capital gains tax. The code was released for Public response. It would not be wise to sleep over it. Posterity would blame if present generation do not participate in such reform process for common people
-----------------------------------
Monday, September 7, 2009
RESEARCH ON DIVERSE APPLICATION MAY BOOST TEA TRADE
Tea as a drink has a wide acceptance. From Queen of England to President of America tea is a welcome drink. Similarly homeless of Britain to Indian residents of below poverty line also love their daily cup of tea. But now world has experienced a different usage of tea. This use is for various product of medicine and health therapy .
Tea is being lately used for colouring of fabric also. Due to antioxidant quality, tea is being used in shampoo, skin care products and even in shaving leather. For the first time I have found shaving leather having tea as an ingredient . This is available in boutique Bath and shower stores. The most value added tea product, however, is now decaf tea. It has much higher value comparative to traditional tea as a drink.This has given rise to a specialised market for tea leaf and tea bush too. In its new application tea formulations are used as health product and in cosmetic application . In these new applications ,more than the tea leaf, tea bushes, branches and trunk of the tree are used generally. A different kind of tree, akin to our tea plant, but are planted and grown much taller mostly in similar climatic zone, of sub Sahara , China and in Australia for extraction of oil.
These plants are akin to our tea plant but grown much taller and even known as Tea Tree . After an extensive research it was found that oil extracted from these tea bushes and trees have produced Tea oil . These oil have found use now in cosmetic products. This is high time for our scientific laboratory to experiment whether tea bushes of Assam could also produce similar oil or not. It is understood that in South India and in China a few entrepreneurs have tried to develop tea oil from the fifty years old bushes also Just before uprooting.
Recently it was established that Tea tree oil is an effective antibiotic and it can help human being to cure skin problems too like acne,herpes, sun burns, blisters etc. According to the recent studies it was found that tea tree oil is also beneficial in curing sickness like cold, cough, soar throat, respiratory problems etc. It strengthens human body with an awesome immunity. And so patient can fight in a perfect way with flu like condition. Till recently there were not much diverse use of Tea. Only research revealed that tribal population used it for medicinal value.
Diverse use of tea would be very helpful for young Assamese tea planters if research could be carried out by our tea laboratories. As the time progress the cultivation of tea alone would not be very profitable for cost of production of tea would go up every day. As the time has progressed due to bad weather condition, cost of fertilizer and increase in human and administrative cost have gone up. If the cost of production continues to go up every year then, It may not possible to profitably run the gardens by most of the planters.
Now a days tea is facing competition not only from cold drinks and natural juices but from chocolate and milk too. The most important competition of traditional tea have come from the " bottled ready to drink tea" itself. Ready to drink have been bottled for sportsperson, parties of youngsters and for those persons who want to rejuvenate themselves for dancing and for partying beyond midnight. These tea are edible bottled drinks made out of tea leaf, and are costly. Yet there is a huge demand as it is marketed as "life style product". Recently tea has been adopted by wine and spirit industry also. In America Vodka and wine made out of tea has been marketed recently. None of these are made of Assam Tea. Mostly these are made from tea produced in Argentina, Ceylon and Papua new guinea. Would anybody from Assam like to try and reap much higher benefit out of tea ? In that event communicate with marketing organisations of USA, Germany and UK for collaboration.Why not start winery in Assam or produce Vodka based on tea leaf. Now a days Polish vodka based on rye and French vodka Grey Goose based on grain are considered top of the line, beating traditional Russian Vodka made out potatoes. Vodka based on tea could be an amazing product too!
The government despite its willingness to support the tea industry may not be able to free the gardens from all taxes and rates. Neither it would be desirable nor possible. Tea industry is the most heavily taxed industry now in the country. The establishment cost would always go up every day and the cost of fertilizer and Electricity would be doubled every five years. A time would come when either small tea gardens manged by individual( like china or south India now) or few very large corporations would be only able to sustain plantation, for the cost of irrigation would also become prohibitive , with the change in climatic condition .
The importing countries of the world now purchase much less tea from producing countries and mix it with various fragrance as the cost of tea has gone up. Even Earl Grey Tea is not pure Assam Tea anymore . It has an aroma of orange in it.Many tea drinking nations have evolved various other fragrance like ginseng, lemon, cantelop, ginger etc. The most recent fragrance used in tea is that of celery.These mixing have been initiated to change the drinking pattern and mainly to change people's drinking habits and for reduction of cost per cup of tea consumed..
Tea tree oil is very popular all over the world and the main reason for this is the high rate of return and low cost of production. It is great value added product for treatment of bacterial, fungal or viral infections are concerned. Since hundreds of years, tribal people living in tribal areas and jungles have relied on tea tree oil as an effective disinfectant. There are many medical benefits of tea tree oil. As far as properties of tea tree oil are concerned people can identify it by its yellow color. It has smell that is similar to nutmeg and green tea leaves. These tall tea Trees are cultivatd in Australia mainly.According a specialist these can be cultivated in Assam , Arunachal and Meghalaya too.
The most demanded traditional value added tea at present is decaffeinated tea and organic Tea. It is a value added product. But in Assam perhaps none are trying to produce decaffeinated tea formulations . The most marketeers in USA and Britain import solution of decaf tea from Germany who are the biggest buyers of Assam Tea. During my conversation with the president of the Harish Tea Company of USA , Mr. Chirayu Baroowah told me that his company imports decaf solution from Germany. From these solution selectively decaf tea are produced and marketed by their company in entire Northern and Southern America. He felt in case decaf formulation technology could be developed in Assam, either through technical hook up with Germans or through development of research locally, the entrepreneurs of Assam could be greatly benefited. Organic tea produced in Assam has created a niche in the world market slowly. Young tea producers of India should make an effort to contact overseas-es technologist for such up gradation of tea product from ordinary leaf product to value added product. Slowly Assamese tea planters should think of diversifying the planting base to other part of the world like Argentina. If Assamese computer and Dot com specialists can make it big in Northern and Southern America why not Assamese entrepreneurs can come out to Australia and South America where Tea Tree are planted now a days for different use. In case alternative use of tea could be taken up by young entrepreneurs of Assam they would be able open an new area of development that might make them millionaire like young IT entrepreneurs.
_______________________________
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Tea is being lately used for colouring of fabric also. Due to antioxidant quality, tea is being used in shampoo, skin care products and even in shaving leather. For the first time I have found shaving leather having tea as an ingredient . This is available in boutique Bath and shower stores. The most value added tea product, however, is now decaf tea. It has much higher value comparative to traditional tea as a drink.This has given rise to a specialised market for tea leaf and tea bush too. In its new application tea formulations are used as health product and in cosmetic application . In these new applications ,more than the tea leaf, tea bushes, branches and trunk of the tree are used generally. A different kind of tree, akin to our tea plant, but are planted and grown much taller mostly in similar climatic zone, of sub Sahara , China and in Australia for extraction of oil.
These plants are akin to our tea plant but grown much taller and even known as Tea Tree . After an extensive research it was found that oil extracted from these tea bushes and trees have produced Tea oil . These oil have found use now in cosmetic products. This is high time for our scientific laboratory to experiment whether tea bushes of Assam could also produce similar oil or not. It is understood that in South India and in China a few entrepreneurs have tried to develop tea oil from the fifty years old bushes also Just before uprooting.
Recently it was established that Tea tree oil is an effective antibiotic and it can help human being to cure skin problems too like acne,herpes, sun burns, blisters etc. According to the recent studies it was found that tea tree oil is also beneficial in curing sickness like cold, cough, soar throat, respiratory problems etc. It strengthens human body with an awesome immunity. And so patient can fight in a perfect way with flu like condition. Till recently there were not much diverse use of Tea. Only research revealed that tribal population used it for medicinal value.
Diverse use of tea would be very helpful for young Assamese tea planters if research could be carried out by our tea laboratories. As the time progress the cultivation of tea alone would not be very profitable for cost of production of tea would go up every day. As the time has progressed due to bad weather condition, cost of fertilizer and increase in human and administrative cost have gone up. If the cost of production continues to go up every year then, It may not possible to profitably run the gardens by most of the planters.
Now a days tea is facing competition not only from cold drinks and natural juices but from chocolate and milk too. The most important competition of traditional tea have come from the " bottled ready to drink tea" itself. Ready to drink have been bottled for sportsperson, parties of youngsters and for those persons who want to rejuvenate themselves for dancing and for partying beyond midnight. These tea are edible bottled drinks made out of tea leaf, and are costly. Yet there is a huge demand as it is marketed as "life style product". Recently tea has been adopted by wine and spirit industry also. In America Vodka and wine made out of tea has been marketed recently. None of these are made of Assam Tea. Mostly these are made from tea produced in Argentina, Ceylon and Papua new guinea. Would anybody from Assam like to try and reap much higher benefit out of tea ? In that event communicate with marketing organisations of USA, Germany and UK for collaboration.Why not start winery in Assam or produce Vodka based on tea leaf. Now a days Polish vodka based on rye and French vodka Grey Goose based on grain are considered top of the line, beating traditional Russian Vodka made out potatoes. Vodka based on tea could be an amazing product too!
The government despite its willingness to support the tea industry may not be able to free the gardens from all taxes and rates. Neither it would be desirable nor possible. Tea industry is the most heavily taxed industry now in the country. The establishment cost would always go up every day and the cost of fertilizer and Electricity would be doubled every five years. A time would come when either small tea gardens manged by individual( like china or south India now) or few very large corporations would be only able to sustain plantation, for the cost of irrigation would also become prohibitive , with the change in climatic condition .
The importing countries of the world now purchase much less tea from producing countries and mix it with various fragrance as the cost of tea has gone up. Even Earl Grey Tea is not pure Assam Tea anymore . It has an aroma of orange in it.Many tea drinking nations have evolved various other fragrance like ginseng, lemon, cantelop, ginger etc. The most recent fragrance used in tea is that of celery.These mixing have been initiated to change the drinking pattern and mainly to change people's drinking habits and for reduction of cost per cup of tea consumed..
Tea tree oil is very popular all over the world and the main reason for this is the high rate of return and low cost of production. It is great value added product for treatment of bacterial, fungal or viral infections are concerned. Since hundreds of years, tribal people living in tribal areas and jungles have relied on tea tree oil as an effective disinfectant. There are many medical benefits of tea tree oil. As far as properties of tea tree oil are concerned people can identify it by its yellow color. It has smell that is similar to nutmeg and green tea leaves. These tall tea Trees are cultivatd in Australia mainly.According a specialist these can be cultivated in Assam , Arunachal and Meghalaya too.
The most demanded traditional value added tea at present is decaffeinated tea and organic Tea. It is a value added product. But in Assam perhaps none are trying to produce decaffeinated tea formulations . The most marketeers in USA and Britain import solution of decaf tea from Germany who are the biggest buyers of Assam Tea. During my conversation with the president of the Harish Tea Company of USA , Mr. Chirayu Baroowah told me that his company imports decaf solution from Germany. From these solution selectively decaf tea are produced and marketed by their company in entire Northern and Southern America. He felt in case decaf formulation technology could be developed in Assam, either through technical hook up with Germans or through development of research locally, the entrepreneurs of Assam could be greatly benefited. Organic tea produced in Assam has created a niche in the world market slowly. Young tea producers of India should make an effort to contact overseas-es technologist for such up gradation of tea product from ordinary leaf product to value added product. Slowly Assamese tea planters should think of diversifying the planting base to other part of the world like Argentina. If Assamese computer and Dot com specialists can make it big in Northern and Southern America why not Assamese entrepreneurs can come out to Australia and South America where Tea Tree are planted now a days for different use. In case alternative use of tea could be taken up by young entrepreneurs of Assam they would be able open an new area of development that might make them millionaire like young IT entrepreneurs.
_______________________________
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