Letters
The story misses out on the point that Dell has not been able to take on the
local manufacturers in China and the same story may be repeated in India too
With Crossed Fingers
The cover story—Billions To Come With Dell—lines up the company’s India plans
and how the money would flow once its assembly unit is in place but it misses
out on some crucial points. The time to deliver a product to the retail customer
is still very high for Dell, three to four weeks. This might be because the
machines are being imported. Dell anyway cannot beat the touch-and-feel experience
offered by other companies. The story also misses out on the point that Dell
has not been able to take on the local manufacturers in China and the same story
may be repeated in India. Price, discounts and offers are the order here and
Dell is traditionally known to have avoided such marketing gimmicks.
Ajay John
Panaji
The Other Side
The feature Caught In No Man’s Land rightly talks about how India may lose out
on foreign direct investments if big-ticket projects like Posco get delayed,
but it fails to talk about the other side—the plight of the farmers, who make
up 70% of the Indian population. The protests against the special economic zones
and other such projects are justified as they involve forcible procurement of
land and unjustifed tax breaks to the wealthy but hardly create any benefits,
including jobs, in relation to the number of people they displace. The farmer
today has no option but to sell his land below the market price, thanks to the
middlemen. While India Inc is trying to woo policy makers and farmers with promise
of industrialisation and job generation, how much of that materialises is anybody’s
guess. If it really wants to help farmers it can look at labour-intensive alternatives
like agricultural food processing. It is time for the government to walk the
talk and formulate a relief and rehabilitation project keeping in mind the interests
of the farmers, and not just the corporates.
Arvind
Guha
Mumbai
Prudent Move
Ranbaxy did the right thing by withdrawing from the Merck deal. It makes no
sense chasing deals that will prove a drain on the finances. Companies like
Ranbaxy, which have been exploring foreign shores with unabated passion, should
be careful in snapping up firms. It’s very essential to be financially prudent
and companies that show unrestrained passion in buying abroad may end up shooting
themselves in the foot. Ranbaxy made a wise decision in pulling out of the race.
For this, the young Malvinder has to be commended.
Anju Thomas
Faridabad
In Top Gear
Apropos your feature on automobile components—Small Parts, Big Story—it is quite
natural that when car manufacturers decide to set up shop in India, their ancillary
units will follow. Maruti Udyog in Gurgaon and Hyundai in Tamil Nadu have attracted
many component makers. Many luxury car manufacturers have announced plans to
enter India. It is now up to the Indian auto component manufacturers to upgrade
and expand their facilities to ensure that local sourcing grows. It is heartening
to read that most of them are gearing up to face the challenges that lie ahead
in the domestic market as well as to grab opportunities in the overseas market.
The key to their survival is to keep costs down through innovation.
Reena Gupta
New Delhi
Coming Boom
Your article on the boom in the auto component industry highlighted just how
much India’s ancillary sector has to fire to help its booming economy and achieve
economies of scale to compete with global biggies. A vibrant auto component
sector bodes well for the larger automobile industry. It would help the sector
get critical components quicker and cheaper as well as ensure thousands of jobs
for the semi-skilled. James
Samuel
Thiruvananthpuram
No Move!
Our feature Caught In No Man’s Land indicated that Soung-Sik Cho, Managing Director
of Posco, was headed back home due to little progress on the ground. The company
has clarified that there is no such move.