towards 4th issue

8/14/2019 Towards 4th Issue

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An effort by Stockyard in association with Mantra Consultancy Group

owards

.

10th May2008 Issue 4

UnstoppableArgumentativeIndians

w.stockyard.infinites.net

Content

Argumentative IndiansIndian Premier League

Sector Report: Oil&Gas

Corporate Radar

Macro economy

Frying Oil

Guest Column

Kalaripayattu


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From Editors de

Towards? has finally crossed its 4th step.

We believe ,day by day, issue by issue, magazine is getting appreciated and accepted

intellectual readers and our corporate partners.

Towards? ,is not just meant to be served to only our corporate and business friendsrat

it is meant to spread a bigger massage of inclusiveness and bringing focus of India Inc tow

a larger issue of nation building. For it is if nation prospers, we prosper

We believe, that India as a nation, as a society and as a cult is fast transforming.As I alw

saythis is a nation in the making.up into chapters of HistoryWe have never been evo

as a nation.that reckons right from Kashmir to KanyakumariAssam to Gujarat

But now.with people in business .and in knowledge society are fast conforming it into

nation..

It is great to see a thriving nation, full of activities and transformation..full of energy

positivity..

I believe, corporate India has to play a much bigger role.and more sofor

Young Turks of Indiathat claims itself to be Unstoppable..we name it Unstopp

Indians..same people ..who can buy businesses 10 times bigger than their ownnegotiate with Walmarts,Shells Fords and MTNs of the older version of the globecan t

world on a stride..

We salute that revolutionary India.but task ahead are much tougher.

For it is to the same Indiathat has to take the blueprint or the roadmap of New avata

remote Bharat version of the same nationFor the same Entrepreneursto take their gro

agenda to bigger massesto left out ones..Remember ..it was only because these

nations could coalesce and could take the dream togetherthat we see all the difference

post 1991 era..

As someone aptly said.each day many people from that side of argumentative,sceptic

orthodox India are crossing the iron thorn fenced boundaries and entering into this sid

unstoppable, ambitious and dreamy India.Now it is high time,,,we destroy this old w

out walls between these to nations..India and Bharat.to converge in one great nation.


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I believe, it is in the interest of Corporate India and also we,,,as part of 350 million+ mid

class to take the initiative and gap this widening divide if at all we want our own success

prosperity to be sustainableGone are the days when rich and poor, haves and have-n

stronger and the weaker could stay and survive together

Definitions are fast being changed.rules of the game are fast being rewritten..it is

time share your part of responsibility towards..Your nationyour societyy

peopleyour earth and yourself

And if you fail to..you are doomed to finishdestined to put yourself in the black -book

history.

We do not want our children to remember ourselves as cowards and selfish...who go

opportunity to change the lives and fate of millions but dare not to

With these massages, 4th issue of towards? is in your hands.

With love and Affection


4/30

Argumentative India

Sometimes, to me this countrylooks hopeless. If you observe

things around you little more

closely you will find the nation isgetting crippled day by day.

Before each election, one or

other political group tries to

spout venoms against one or the

other group.Mr Raj Thakarey,

these days seem to be quite

active against North Indains,

especially Biharis.It is very sad

that, in India, some people are

being treated as immigrants. We

have been hearing about these

things against Indians in South

Africa, Europe, Fizi and other

parts of World, but never

expected this to happen with

Indians in India itself It seems

as if few people have bought the

country and are rulling, or

ruining it at their whim, just to

gain political millage.This trend is

very dangerous as it weakens the

basic fabric of India as a nation

and may start a vicious cycle of

hatred and disunity. There are

issues, numerous issuessome

with development, some with

lags in it and more importantly

with its equitable distribution. It

looks that few people like Mr

Arjun Singh are still living in the

mindset of before liberalized

quota, reservation and licenceRaj

mindset. Reservation in it most

elementary form itself, attacks

the merit and democratic fabric of nation. The burning question that youth need to ask from a

grannies that why do you need a reservation even after 50 years of reservation. Is not it a failu

the system that it could not create enough jobs, opportunities and space for each and every o

grow? How much more time we need to create a space for every one?

This is some of what happening around

China has a special Cyber Army which is getting prepared for a mu

more sophisticated assault on India. The sustained assault goes b

with the political and military disquiet between the two countrAccording to a very classified information from Internal affair minis

and Cyber vigilance departments, Chinese cyber systems

progressively, methodically and tactfully intruding and penetrating i

crucial Indian official networks and recruiting their cyber Informers

the system that can possibly be used to deactivate and dysfunct

crucial systems at the times of conflicts between two countries. Th

attacks are not isolated incidents of something generic or basic

hacking, but far more sophisticated and methodical. The core of th

assaults is that the Chinese are constantly scanning and mapp

Indias official network. There is already an attempted assaults on

(National Informatics Centre), National Security Council and Ministry

External Affairs. A quite effort, it is said, is underway to set up defe

mechanism.

According to the statement of Indias Chief of naval staff, the head

Indian naval Force, China is deploying number of nuclear submari

encircling Indian Territory across the Strait of Malacca and East

regions bordering India. These submarines are equipped w

sophisticated Submarine ballistic Missiles with nuclear warheads t

can penetrate deep into any part of India without easily gett

detected.

In Baster District of Chhattisgarh state, every second house in tr

areas is infected by malaria. There has been reported death toll

more than 100 tribal children from Malaria at the time when malari

completely curable. The district health department does not ha

enough medicine for people in the area. This is not the sole incide

as this happens everywhere in Country with tribal when

government is busy in giving them reservation while they are depriv

of even the basic amenities.

Our great Health minister is busy enough in banning liquor a

smoking on screens and cleaning AIIMS from someone like Docter Ve

Gopal. Alas our minister could have rather paid little attention to

fake medicines available in the market and did a little to take care t

proper medical facilities reach to all nooks and corners of the countr

Agriculture, we all know, in this country is in a pathetic state. O

beloved Agriculture minister Mr Sarad Pawar has actually join

another ministry that is called Cricket Ministry and perhaps has no ti

to look after poor state of agriculture.


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Why we need to squeeze somebodys opportunity to make room for some one else. Keeping a

support and empathy to every one in politically, economically and socially backward section

need to ask, why we still have those differences? Why we could not create a just an equ

society in 50 years? Why do we still need reservations? An answer is very obviousThere is

one who does not wish that you, at all, growsome one whose very supremacy is at stake if,

you grow up from your age old imposed backwardness and slavery. Remember democracy monarchy where they rule over your mind, giving you false impression that your body is free

freedom of the body hardly matters when your mind is slave. And they attack you is from all s

These Arjun Singhs ,Raj Thakereys and Sonia Gandhis will never let you be empowered. The

never let you feel that just being Indian makes you equally eligible than any one else to stake

claim on anything, anywhere and anytime to whatever is of India to be your. They will never le

feel that you own India. Rather they will tell you that they are still trying to make India your

you should perhaps vote them one more time to power if at all you want your safety in an

which is not yet yours.

And what are the Advanies, Uma Bhartis, Vinay Katiyars, Prakash Singh Badals, Janrail SBhinderawalas, Narendra Modies and Imam Bukharis of this country are doing?

Well! they are trying to convince you that your religion is always at war front from other relig

For it is for them that they are safeguarding your religion, culture, caste, state or language

those of mine.

And if you observe little more closely, they will always attempt that YOU REMAIN AGAINS

ALWAYS .We and YOU may be Bihari Marathi, North Indian-South Indian, Tamil-Kannadiga, H

Muslim or any other differentiation. And I have been seeing these hostilities to always aggr

during election times.

They forget that post election; they leave some open wounds, burnts and stigma of hatred.

remains teasing forever.

Is not this country just hopeless?

Now look at this.

Several SuplyChain issues, that let our over 40% agro produces get spoiled.

Less than 15% people 10

th

+.

More than 60% people below poverty line.

And if you observe ,you will feel that these are not only people who are creating nuisance a

political arena , there to be blamedfor there is one more picturethat is equally grimmer.

I, as a young citizen of this great nation and as a representative of 110 billion + people of India

responsible all those who are blocking its prosperity and growth in any way. Leaders like M

Koda, Prakash Karat and many more are equally responsible for they are the once who got chan

the helm of affairs but did not do any thing to bring this nation at the path of growth.


6/30

Remember growth opportunity foregone is the growth and prosperity denied to all the citize

India, which in itself is a crime. It could be one more election time. Elections are around the co

Take a new

initiative, grab your leaders collar and ask them WHAT THEIR AGENDA IS FOR THIS NATION? W

ARE THEIR THOUGHTS ABOUT INDIA AS A NATION NOT ANY SPECIFIC RELIGION, CASTE OR REG

India, sometimes I feel has yet not emerged as a nation in ideology. A nation is not just a polit

sovereign geographical, demographic establishment. Nation is a spirit that binds all its dwellONENESS where sense of belongingness supersedes all differences and proclaimsWE

ONE...ONE NATIONONE POWERFUL..EMOTIONAL UNITY.and I feel, this sense of belongin

is still missing in all of us.

I knowand so do youwe in India have several issues to be resolved before emerging as a s

nation and we all at some point or other have felt.that.this nation is hopeless..s

hopeless..

But is there a way out.?I think yes..there is a way..

Why do not we start from the point we are at , exactly now?

Lets start it..start creating your India..Share it with meits problemsissuesdifficultiesgoo

bad thingseverything that has its share in this nation.and when I say nationI mean d

Kashmirin deep militancy..Far north Eastin separatist camps.remote village ofBihar, O

or West Bengalwhere no light of developmenthas reached

And when I say IndiaI also mean all those affluent people who are busy in extravaganza of IPL20 at the time when more than half of nation is fighting its battle against poverty, malnutrition

ignorance.and exactly at the time when millions of soldiers are facing lethal bullets at their

guarding our bordersat the same time when some people are making money selling the co

of martyrs of kargilat the same time when naxalites are slowly and steadily creating a sep

country full of hostilities against your own nationat the same time when an Adivasi(trib

getting killed in Assam by ULFA.at the same time when a poor laborers from remote villa

Bihar is being kicked away from Maharashtra to alter on political ambitions of Mr Raj Thakera y

the same time when we, in India hold Lakmey fashion week ..at the same time when Salman k

charge Rs 50 crore per movieaat the same time when millions of dollars are being waste

cheer-girls.at the same time when you and me are burning hundreds and thousands on birtparties at PVRs and Mc Deys at the same time when..there is one boy of around 6 -7 years

attending basic primary school to work in a garageat the same timewhen India is t

birth.and being foetisized in mothers womb..at the same time when someone tries to d

you .at the same timewhen I and You are just mute spectators

at this very momenti.and you can rise up hold each others hand ..and .cre

strong nation which if free from all slaveries.at the same timefew Baba Amte

Bedis.Anna Hazare.Sandeep Pandeys ..Dalai Lamas..Rajendra Awasthis .Moham

Unush..are doing their best to change few lives..


7/30

Indian premier leag

IPL: Transition of Cricket from a Gentleman Game to New Business Venture

In INDIA, Cricket is the only sport which unitesevery generation and creates sensation with its

thrilling atmosphere. It is played & watched in

almost every part of our diversified society &

culture. Huge fans following base had made the

Indian cricket control body one of the richest

among all the sports. As Indian economy is 2 ND

fastest growing nation with its young

population, per capita income is also rising and

that makes the huge surge in average

disposable income. Now this young generation

wanted live entertainment in smaller period

and if that comes through their favorite game

cricket then nothing can stop popularity of this

game further.

Indian cricket league(ICL) headed by Essel

group ( Subhash Chandra) was a similar move to

exploit this opportunity but BCCI saw this as a

threat as a future competitor of the game of

which it had a complete control. So BCCI also

launched Indian premier league (IPL). Both of

them came with a new but fast version of

cricket that is 20-20 over match.

ICL is already over with an average show but IPL

started with a big bang and running

successfully. Cricket frenzy fans are flocking to

the stadium and making this tournament a big

hit. One of the biggest surprises had been

observed during the earlier IPL matches was the

strong presence of women and children who

normally remain away from the matches. This

clearly indicates that IPL is not only o

plain cricket but ultimate pleasure an

entertainment from which no age gro

refraining. This 3 hour game in late e

could be compared to an evening movie

which is not that appealing. People wan

change and that had been availed by T

Like the famous base ball or soccer m

between the city clubs in Europe & USA

attract huge crowd and these clubs ha

name , IPL city based teams are also vy

stand in that famous league. It is too early

said about the sustainability of this form

in short period it seems to be a huge hit.

Indian corporate also saw the opportun

make money out of this energetic gam

hence a lot of money is flowing into the

Huge bidding amount by the big corpora

celebrities (Reliance..Mukesh Am

KingfisherVijay Mallya, GMR, India ce

SRK, Preity Zinta) for the team franchise

clear example.

Reason is pretty simple.Money the Fin

Benefits & Marketing Benefits.

Some of them are here for money som

brand building proposition and few of the

both. Now who gets what and up to

extent will be interesting to watch. So

them call it as a calculated gamblesfuture will decide the fate of these franc

and their owners action to be in or out

this people loving action buzz.


8/30

T 20 -20: Future Prospects

As Indias wealth base broadens, consumers will demand and be prepared to pay for more and

live entertainment opportunities. Watching live sport is a major weekly pastime in the w

advanced economies - approximately 400,000 attend Premiership football every weekend in En

generating nearly $5 billion in match day revenues (tickets, premium seating, ground conceetc). In recent years international music acts such as the Rolling Stones, Shakira and Black Eyed

have played to packed stadiums in India the Indian public are starved of high quality entertai

opportunities. A star studded Twenty20 cricket tournament will help to satisfy this incr

demand.

The chart below clearly indicates the popularity if T 20-20 especially when Indian team is play

that. So if we see the revenue side the money from TV Rights, advertisements will keep co

Cricket has a big market in India there is not any big competitors of it.ICL could be one of the

competitor for IPL in coming time. But it all depends upon its accreditation by ICC and capa

attract famous foreign & domestic players.T20-20 formats in other countries like England or Au

could affect mildly in terms of availability of their players. However viewership wise there will

any major impact to IPL because Indian cricket viewers are more than the total cricket vi

around the world.

Sources: IPL Franchisee Prospec

T 20-20: A Boon or Bane for the Future of the Indian Cricket

Helping Cause to the Cricket:

Full entertainment to the viewers. Young & regional players will get a chance to play with international player

would definitely boost their confidence.

Huge revenue income through this tournament will be spent the developmbetter infrastructure like stadium, fitness centers, training centers. The level o

cricket will improve.

Shorter version of the game could be more popular in Europe and Americapeople prefer short duration games. This would help in increasing cricket fa

around globe and make it more appealing.


9/30

Ugly form of the Cricket:

As huge money following this game. Already, almost $1.7 billion has been wagethe IPL, Real spirit of the game will be lost.

Players will lose focus on the real on field performance. City based team will have their own fan following and that would create regio

among the fans and also up to an extent in players.

Performance of the National team would suffer because the players will get less tpractice and excess cricket will cause fitness problems to the players.

All the above points are not based on any facts or figures but from the general perception of

analysts and experienced players. Since everybody has their own explanation and justification

of the readers may not agree on above assessment.

Sports Franchisee Business:A Brief Overview

Many of the worlds top sports competitions are run on a Franchise basis NFLNBA, NHL, MLS, Super league, AFL

The Franchisee enters the league by investing in a Franchisee The Franchisee receives a share of the central revenues and has the opportun

develop and retain local revenues

As well as benefitting from a number of realizable assets, the Franchisee is perceivegood corporate citizen, and receives significant public relations and marketing be

As the league matures the revenues grow and the brand develops, the capital vathe Franchise grows

Franchises are traded under terms agreed between the Franchisor and the Franchis The Franchisees investment is secured by guaranteed continued participation

competition

Expansion Franchises are awarded in a manner designed to benefit the estakeholders

The valuation of Manchester United is 9 billion. The sheer number of people viewing cricket in

is much more than soccer viewers there so we can estimate the monetary benefits of this mo

sports (Cricket) in India.


10/30

Reasons of the failure of Indian Cricket League(ICL).

It has been launched by Subhash Chandra in May 2007; ICL is a unique concept in cricket aft

was not able to secure rights of the World Cup 2011.

ICL initially had six teams which have now increased to eight (over 200 players). All thes

teams were owned by Subhash Chandra unlike the eight teams in IPL owned by differen

franchises.

The investments in ICL are in excess of Rs1bn.

ICL has evolved despite several constraints like unavailability of venues, national-interna

cricketers & other professionals associated with ICC. It had a TVR of 1.2. Its revenues till date

been Rs750mn and are expected to break even in FY09E. Unlike IPL, ICL had not any clear fin

details about its Business model san investors to put their money.

Business Model of the IPL

8 Franchised City teams will competeFranchise numbers will increase over time with founder Franchises rights protected.

The inaugural IPL season which has already started on 18th April will run for 44 days. Each Franchise will play each other home and away 7 guaranteed home match

Franchise (Each NFL Franchise has 8 home games).

The top 4 Franchises in the league will contest the semi finals and the victorious semi fiwill meet in the Grand Final all over one weekend.

A total of 59 matchesthis creates a total of 177 hours of live content. The 2 IPL finalists will advance to the new Champions Twenty20 tournament provisi

scheduled for October 2008.

Matches will be played to ICC World Twenty20 regulations. SONY-WSG has bagged broadcasting rights for 10 years for US$918mn, excluding marke

for US$108mn.

The franchise amount collected is US$724mn, with each of the clubs being sold for US$112mn, depending on the city.

Besides acquiring teams, each of these franchises has spent US$6-7mn on acquiring plafor their teams.

Financial Prospects of IPL

Making it financial viable and low risk game in long term Lalit Modi (BCCI Vice President

Chairman) the man behind IPL has ensured that a top broadcaster and eight large business h

will have an equal financial interest in making the IPL a success. At the same time, he has spre
http://en.wikipedia.org/wiki/Image:IndianPremierLeague.jpg


11/30

business risks across three sets of stakeholdersthe

broadcaster, the franchises and the BCCI. Like other franchisee

formats IPL has categorized their sources of revenues into two

forms: Central & Local

Central

Media- Sponsorship Official Suppliers

Local

Gate Franchise title & shirt sponsorship Local sponsorships & Uniform merchandising Hospitality and premium seating Matchday concessions & Matchday promotions Tournament winning prize (Around 12 crore) Franchise media platforms e.g. Franchise channels

and websites

Expenses of the Franchisee

The Franchise fee The player salaries and the Franchise executive,

management and coaching salaries

Marketing Costs to build the brand of theFranchisee

Stadium leasing costs & Matchday costs e.g.staffing, security under guidelines provided by theIPL

Franchise offices , administration , travel &accommodation

This is after reducing the

share of BCCI from the

Central Revenue. The rest

money will be distributed

equally to all franchisees.


12/30

IPL- already a US$2bn property thanks to huge money pouring through media & sponso

rights and from franchisee bidding.

First: The Broadcaster

For the $918 million the Sony-WSG (World Sports Group) combine has paid, it will get a minim

12,744 ten-second ad spots every year. Sony expects to sell these slots at a card rate of about

3 lakh each. Be conservative I have taken only 2.25 lakh for each 10 second ad spots. Adve

typically pay a peak value of Rs 3 lakh for a 10-second slot in a test match, Rs 5.15 lakh for a on

international and Rs 8 lakh for a top-notch Twenty20 international. At a card rate of Rs 2.25 la

Sony-WSG combine stands to earn Rs 286 crore in advertising revenue in the first year. Still,

not a bad first-year return on a Rs 3,672 crore ($918 million) investment made over 10 years.

Cash flows for Sony & WSG

1 2 3 4 5 6 7 8 9 1

Cash

Outflow367.2 367.2 367.2 367.2 367.2 440.64 440.64 440.64 440.64 4

Cash

Inflow

285.75 314.33 345.76 380.33 418.37 460.20 506.22 556.85 612.53 6

By third year end Break even is on the cards and that may go very especially if there is the prom

a huge upside if the IPL takes off. "If the tournament does well, the ad rates could well cros

lakh,"

Second: The Franchisees

The eight successful franchise bidders. While they have paid anywhere between $67 m(Emerging Media for Jaipur) and $111.9 million (Reliance for Mumbai), they will also receive

$75 million over the 10-year period from assured payments coming from the central pool. Th

rough estimate based on a simple model, though the IPL follows a graded structure. "The IPL bu

model has minimal risks. Even if the tournament gets a lukewarm response, the franchis

assured of covering 60% of their expenses through the central pool fund.

Indian Premier League: Will Franchisee break-even?

The success of the IPL in the long run depends on whether the team owners would be a

breakeven in the near future. While some of the franchisees have expressed the confidence tha

will break even within two to three years, doubts remain. To diversify their risk some franchisee owners are planning to raise funds though private equity by diluting minority s

Chennai Super Kings, the team owned by India Cements (ICL), has been approached by private

investors.


13/30

Cash flows for Franchisees

All the calculations for one franchisee by taking on averages revenues from central & local po

8 franchisees

IPL prospectus suggests that these franchisees could command valuation akin to premium bra

Price/Sales ratio of 3-5 on an average. These high valuations are in league with English p

league clubs like Manchester United. If we take a Price to sales of 4, then the Mumbai team,

went for $112 mn needs to show annual revenues of $28mn, or Rs 110 crore. This would pe

need Rs 75-80 crore from local revenues. Any valuation gains may come only when rev

significantly exceed this. As per my projection this high Price/sales ratio will be only possible af

years by taking a conservative approach that the present financial condition will at least prevai

much better. The cash flow analysis corroborates the point about the low risk of this invesmade by the Franchisee owners. But the towering valuation of $5 bn for every franchisee see

be very flattering one.

Particulars/Years 1 2 3 4 5 6 7 8 9

Cash In Flow

Central-Tv Rights 36.7 36.7 36.7 36.7 36.7 44.1 44.1 44.1 44.1

Central-Sponsor Ships 6.8 6.8 6.8 6.8 6.8 8.9 11.6 15.0 19.5

Local

Team Sponsorship 14.0 14.0 14.0 16.8 16.8 16.8 20.2 20.2 20.2

Gate Money 12.0 14.4 17.3 19.0 22.8 27.4 32.8 39.4 47.3

Shirt Sponsorship 5.0 5.0 5.0 6.5 6.5 6.5 8.8 11.8 16.0

Stadium Advertisements 7.0 8.4 10.1 12.1 14.5 17.4 20.9 25.1 30.1

Merchandising 3.0 3.6 4.3 5.2 6.2 7.5 9.0 10.7 12.9

Total 84.6 89.0 94.2 103.1 110.4 128.5 147.3 166.3 190.0

Cash OutflowFranchisee Owning Fee 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0

Players & others Salaries 22.0 22.0 22.0 27.5 27.5 27.5 38.5 38.5 38.5

Marketing & Branding Costs 12.0 16.8 23.5 32.9 36.2 39.8 43.8 48.2 53.0

Stadium & Allied Costs 2.0 2.4 2.9 3.5 4.1 5.0 6.0 7.2 8.6

Team Administrative Costs 7.0 8.4 10.1 12.1 14.5 17.4 20.9 25.1 30.1

Total 83.0 89.6 98.5 116.0 122.4 129.7 149.2 159.0 170.2

EBIT 1.6 -0.6 -4.2 -12.8 -12.0 -1.2 -1.9 7.4 19.8


14/30

Third: Role of BCCI

From this exercise, the biggest winner remains BCCI. The way the deal is structured, BCCI see

to make almost riskless income of around $1bn from IPL. This income will primarily come fro

$723mn or so that the 8 team owners have bid to own the teams. BCCI will also get a minority

of TV rights, ranging from 20% in first 2 years, to 40% from year 6 onwards. BCCI will get 4

tournament sponsorship money.

BCCI or more specifically the entity IPL that it has set up has largely an advisory role. There

particular fixed cost it incurs. IPL is supposed to do things like award commercial rights, two b

of which the TV rights and the team ownership are done. It also has to set up tourn

schedule, provide umpires and match officials (the franchisee bears the

Compare this with say a consultant or a private equity partnership and you realize how good th

is for BCCI. The general partners get a 2% fees and 20-30% of profits. Here BCCI gets 20-40%

incomes from TV and tournament rights. Clearly BCCI benefits a lot from its monopolistic hold o

game.

Concluding Words

When everything goes well, no body complains.remember the subprime crisis..subprim

quite successful in its initial phases but when subprime borrowers started defaulting on

mortgage paymentsthe castle of financial securities got demolished.

In some ways, IPL is like a castle of cards. Spectators and viewers form the base. At the second l

the BCCI, using its might in getting big Indian and international players to play in the IPL. At th

level is the broadcaster, whose $918 million seed money has been leveraged well. At the top

deck are the franchises. But the foundation of the castle is Indias cricket-hungry public. If t

up the IPL stadiums and stay glued to Sonys live coverage, the castle will stand. If they stay awa

castle could come crashing down. If that happens, BCCI will suffer the least, financially at least.

WSG will take the biggest blow because it is the biggest financial investor in the IPL. An

franchises may get away with a few millions in losses.

Contributed by

Vibhor

ICFAI Business School, Hyderabad


15/30

Sector Report: OIL&G

Based on Report by KPMG:

By world standards, Indias current level of energy consumption is very low.

With a target GDP growth rate of 7-8 % and an

estimated energy elasticity of 0.80,energy

requirement is expected to grow at 5.6

6.4%.This would mean a 4 times increase in

Indias energy requirement over the next 25

years.

Demand for Oil, comprising of 36% of Indias

primary energy consumption, is expected to grow

both in absolute and percentage terms to 196

MMT in 2011-12 and 250 MMT in 2024-25.

Demand for Oil is expected to rise at anannual growth rate of 3.6% from 2004 to 2025(250 MTOE).During the same period, do

production from existing developed reserves expected to grow at approximately 2.5%.

This gap in demand and supply will catapult India to one of the largest consumers of cru

along with China. India and China, together will account for 35% of the worlds increm

energy demand.

To address the growing demand-supply gap, the government has stepped up exploratio

production efforts through private participation under the NELP, and has also develo

more holistic strategy for acquision of equity in Oil abroad.

ONGC Videsh Ltd, the wholly owned subsidiary of ONGC, is now active in 15 countries i

Pacific, Latin America, Middle East, Africa and Russia.

Other Indian companies like RIL, Gujarat State Petroleum Corporation Ltd.(GSPC) and Vid

are actively seeking Oil and Gas blocks across the globe.

Policy and Regulatory Framework:

The Government has allowed

100% FDI in exploration, creation

of pipeline infrastructure,

refining and in downstream

retailing (subject to a minimum

investment in mid-stream and

upstream sector).

E & P players are entitled to a

100% tax holiday for 7 years,

with respect to profits earned from production of mineral oils.


16/30

Investments under NELP:

6 rounds of competitive have already been done, under which, 162 blocks were awarde

in-place volume estimated at 600 MMT of Oil and Gas have been discovered.

The recent NELP-6 was a success with 165 bids being received from both domest

international companies for exploration rights.

DGH (Directorate General of Hydrocarbons) has already announced the 7th

round of bidd

57 blocks.

Salient features of NELP-7:

Upto 100 % foreign participation.

No carried interest by National Oil Companies

Freedom to market in domestic market.

IT holiday for 7 years starting from year of production.

No custom duty on imports required for operations.

Option to amortize exploration and drilling expenditure over a period of 10 years fr

commercial production.

Royalty payable to the Government ranges between 5 to 12.5%,based on the ty

operations.

India as a refining hub:

Lower construction and cash operating costs.

Strategic location en route of Middle East Crude for East Asian and Pacific-rim markets

Expected world wide deficit caused by the shut down of small and uneconomical ref

around the world

The inability of oil majors to invest in refining assets during last decade and significant inc

in the Chinese demand has accentuated the deficit.

There is a planned capacity addition of 80-90 MMTPA of refinery in India in the next 4-5

to the existing capacity of around 149 MMTPA.

RIL is constructing a 28 MMTPA refinery at Jamnagar which is expected to be operational duri

financial year 2008-09.

HPCL has entered into a partnership with Mittal Investments, to set up a 9 MMTPA refinerypetrochemical complex at Bhatinda.

IOCL has planned investments of Rs 230 billion for several refineries.

Significant investments are also planned for up gradation of existing refineries to meet specificati

per Euro 4 and Euro 3 (implementable by 2010).


17/30

Indias Trade of Oil Products:

Indias trade in Petroleum products is driven by sustained increase in refining capacity ,driven b

advantage over erstwhile importing countries.Currently,India possesses surplus refining ca

generating exportable products. Significant proportion of exports is driven by petrochemicals s

RIL.

Building a strategic petroleum reserve:

The Government has taken steps to set up strategic crude oil storage reserves at various loca

improving the countrys ability to respond to short term supply disruptions.

GAS SECTOR

Per capita consumption of Natural Gas in India is currently amongst the lowest in the wo

29 cubic meters compared to a world average of around 538 cubic meters. The present

of natural gas in the energy basket is only 9% compared to a world average of around 24%

The demand for Natural Gas at about 180 MMSCMD in the country has far outstripped

(about 95 MMSCMD).and there has been an increasing trend towards emergence o

Natural gas demand as well as conversion from existing fuels to Natural gas.

By 2025, India is expected to bat both China and Japan in becoming Asias largest Natur

consumer. Demand is expected to be in the range of 350 MMSCMD.The share of NG in fu

is expected to go upto 22% by 2030.

80% of NG demand is met from domestic sources.70% of NG market is made up of the

and fertilizer sectors.


18/30

LNG as a substitute for costlier Naphtha has seen increasing absorption in the domestic m

The lack of a cross country gas pipeline to enable transmission, the emphasis on coa

preferred fuel for power generation and the gradual emergence of Coal Bed Methane

made LNG increasingly uncompetitive for power generation in short to medium term.

Coal Bed Methane (CBM) and Underground Coal Gasification Opportunities:

With proven reserves of 765 MTOE and indicated reserves of between 1,260 and 2,340 MTOE

could be a great opportunity. More than 26 blocks are already awarded so far and more to be tak

as part of future phase of CBM bidding. Compression of CBM and marketing as CNG could be exp

in potential industries as a monetization option for stranded gas.

A related exciting technology is that of underground coal gasification. Given Indias large coal res

the UGC technology could potentially produce volumes of multiples of Indias free natural gas res

At least 30 cities are going to adopt city-wide gas coverage by private and public play

compared to 6 cities today.

Companies in this space:

Oil Drilling

Company Name Equity Gr. Blk Sales NP PATMB.V

RsEPS

Rs. P/E P/BV

Jindal Drilling 11.47 56.4 413.23 18.99 5% 211.3 16.6 74.1 5.82

Oil Exploration / Allied Services

Aban Offshore Lt 7.56 1146.99 658.41 168.7 26% 194.9 44.6 78.7 18

Alphageo (India) 5.12 82.45 54.29 7.65 14% 55.5 14.7 38.3 10.14

Asian Oilfield 10.46 8.55 34.78 7.46 21% 50.4 7.1 27.2 3.83

Cairn India 1892.19 0 1.27 -78.82 168.7 0 0 1.49

Dolphin Offshore 9.56 69.79 205.81 14.82 7% 63.8 15.1 16.1 3.81

Hind.Oil Explor. 130.53 159.8 114.51 -25.5 -22% 76.7 0 0 1.88

Interlink Petro 8.1 3.23 0 -0.64 3.4 0 0 5.29

O N G C 2138.87 52038.07 56635.58 15327.87 27% 289.5 66.9 15.5 3.59

Selan Expl. Tech 14.42 12.74 34.46 13.1 38% 39.9 9.1 29 6.62

Shiv-Vani Oil 43.91 375.59 409.45 57.62 14% 141 10.5 54.3 4.04

Gas Distribution

Deep Industries 20 31.9 20.02 6.37 32% 34.9 3.2 43.8 4.01

GAIL (India) 845.65 14932.56 16036.59 2386.25 15% 134.7 26.8 16.7 3.32

Guj. Gas Company 12.83 652.02 1187.89 159.01 13% 85.5 24 11.3 3.16

Indraprastha Gas 140 613.13 622.02 138.18 22% 33.4 9.4 13.2 3.71

Petronet LNG 750 1945.53 6555.31 474.65 7% 21.6 6.3 13.2 3.84


19/30

Corporate Rad

Shoppers Stop:

Leading fashion and lifestyle retail department store

Shoppers Stop will be investing around Rs 1,500 crore

over the next three years to double its outlets to 48.

Of this, Rs 500 crore will be raised through equity and

warrants, Rs 500 crore through internal accruals and

the rest through debt," Shoppers Stop Managing

Director B S Nagesh said in Mumbai.They are planning

to have at least 48 stores by 2011-12 and the present

1.5 million sq ft area of operation of Shoppers Stop

will touch 3.5 million sq ft. The per store area,

currently about 40,000-45,000 sq ft, will be increased

to around 75,000-85,000 sq feet. They are looking at

having bigger formats of Shoppers Stop. The company

will get into a number of new Tier-II cities like

Ahmedabad, Jalandhar, Ludhiana, Am

Vijayawada and Mangalore. The high co

operation still remains a concern while there

hype surrounding the business. They will contin

focus on premium category and also on luxur

have high-end brands like Espirit, Mac, To

Hilfiger and Lancome. The company has also lau

its own in-store radio format and tied-up with

content company Blue Frog, which would u

customers on new fashion, homeware and oth

Norway-based private equity fund will invest R

crore (500 million Norwegian kroners) in I

energy sector that is expanding rapidly to mee

South Asian country's growing need for power a

Ispat Industries:

Ispat Industries Ltd said on Wednesday it will not

raise steel prices till June due to pressure from the

federal ministry to control prices to rein in inflation.

Earlier, the company had said it will raise prices of

hot-rolled coil by 5,000 rupees a tonne in May d

escalating prices of raw materials such as iron o

coke.

IDFC:

Indian infrastructure specialist IDFC Private Equity is

raising a new $700 million fund to buy stakes in firms

expected to thrive as the country modernises its rag-

tag power and transport networks. IDFC's managing

director for investment, Satish Mandhana, sa

fund would close in the next two to three weeks

around 85 percent of the money coming from a

.Bajaj Electricals:

Lighting products and appliances maker Bajaj

Electricals Ltd announced a strategic alliance with

Italy's Nardi Elettrodomestici S.p.a to sell the latter's

range of premium gas appliances in India. They are

aiming for a 25 percent market share in the top-end

segment in a span of three to five years. Bajaj

Electricals sold 3.2 million units of appliances in

2007/08 translating into revenue of 3.75 billion

rupees. The unit makes a range of home products

including food processors, water heaters, irons and

gas stoves and contributes about 30 percent to

revenues and 40 percent to net profit. The exc

alliance in the first phase would sell stove

chimneys, ovens and microwaves in the s

phase, and will look for tie-ups for modular kit

in the last phase. In 2006/07, Bajaj Elec

reported net profit of 385.3 million rupees o

sales of 10.8 billion rupees. Adjusted for inflatio

is now above the $101.70 peak hit in April

according to the International Energy Agency,

after the Iranian revolution.

OBC:

Public sector lender Oriental Bank of Commerce on

Wednesday announced a net loss of Rs 99.44 crore

for the quarter ended March 31, 2008. The bank had

reported a profit of Rs 54.86 crore for the fourth

quarter last year. However, total income has

increased to Rs 2,071.01 crore for the three-month

period from Rs 1,577.29 crore in the same period last

year, the bank informed the Bombay Stock Exchange.

The bank's board of directors has recommen

dividend of 47 per cent for fiscal 2008, it said

has posted a net profit of Rs 353.22 crore for th

ended March 31, a 39 per cent decline as com

to Rs 580.81 crore in the preceding fiscal.

income has increased to Rs 7,454.84 crore fro

5,652.91 crore in the previous year.


20/30

Sterlite Tech:

Company has received three contracts valued at Rs

296 crore from Power Grid Corporation of India

(PGCIL) for the supply of power transmission

conductors. As per PGCIL's requirements, supplies

against these contracts would commence from

August 2008. Sterlite was chosen as the

manufacturer and supplier for over 8,300 km of

Conductors that would be installed in the 400 k

Korba-Birsinghpur-Damoh-Bhopal Transmission

in Madhya Pradesh.

SBI:

The losses suffered by the corporate clients of State

Bank of India on account of currency derivatives could

range between Rs 600 crore and Rs 700 crore in the

just ended fiscal, said Mr O.P. Bhatt, Chairman of SBI.

While the bank has a fair amount of derivatives

transactions, it has not done any exotic deals. SBI

has structured derivative deals only for its customers

and each deal has an underlying clause. In books

there is no provision on this account. SBI will make a

provision of $10 million (approximately Rs 40 crore)

on its marked-to-market losses on account of

exposure to sub-prime paper in its overseas

operations. While the impact will be seen in the

banks bottomline in the fourth quarter of the just

ended fiscal, the situation is not getting worse

does not have exposure to any sub-prime

except this, which it is marking to market. This

exposure to Credit Linked Derivative Notes, but

investment they made in Fortis Bank. Credit grow

fiscal 2008-9 is likely to be around 22 per cent,

is roughly the same as that of fiscal 2007-08. H

said that deposit rates are unlikely to rise. The

loan segment is likely to see growth between 2

cent and 22 per cent and the bank hopes to ma

its top position in the segment. While specu

demand for housing loans has slowed down,

demand from first time buyers is still strong.

ICICI Bank:

ICICI Bank and its overseas subsidiaries have an

exposure of over $2.2 billion in the credit derivatives

market. (Credit derivatives are defined as tradable

financial instruments whose price and value d

from the creditworthiness of the obligations of a

party).

JSW:

Jindal South West (JSW) Group will invest a whopping Rs 70,000 to Rs 80,000 crore to expand its operati

steel, power, infrastructure, cement and aluminum sectors. out that of the total investment his Group w

invest about Rs 40,000 crore in steel sector, which includes ramping up production at its Vijaynagar Pl

Karnataka, while Rs 25,000 crore would be utilised to enlarge its operations in power sector both for captiv

greenfield power plants. Another Rs 10,000 crore would be invested for making forays into the aluminum s

and about Rs 5,000 crore for cement and infrastructure sectors. As part of the Group's efforts to establish it

a major aluminum player, it was setting up an alumina refinery at a cost of Rs 10,000 crore at Vishakhapa

and the first phase of it would be commissioned by 2011. JSW's greenfield steel project in West Bengal wo

operationalised by 2011-12 and the company would begin the construction work for it by October-Nove

The entire project will cost about Rs 30,000 crore. The money of all the projects would be met entirely fro

company's internal accruals while the Group would go ahead with an Initial Public Offering to garner abo

4,000-5,000 crore from the market for funding its power sector projects. The Group has posted a net profit

tax after of Rs 270.06 crore for the quarter ended December 31 last year, while its total income was Rs 28

crore during the same period. By 2020, the company was looking at having a total capacity of 30 metric t

from our three plants in Karnataka, West Bengal and the one being planned in Jharkhand.


21/30

Macro econom

European Commission has forecasted the growth in the 15 countries sharing the

would slow to 1.7% this year from 2.6 year in 2007 and to 1.5 % in 2009. In February, Commis

had forecasted the growth to be at 1.8% this year, a cut from its earlier forecast of 2.2%

November 2007. The moderation in growth results from the persisting turmoil in the finan

markets, the marked slowdown in the US and soaring commodity prices, all of which are ta

their toll on global activity. The Commission expects inflation, which hit a record high of 3.6%

in March, to accelerate to 3.2% in the whole of year 2008 from 2.1% in 2007 and to ease to 2

in 2009.Euro appreciated by 13% against Dollar.

Economy Watch: FDI in India

$ billion2007-08 (April-February) 25.45

2006-07 22.08

2005-06 8.96

2004-05 6.05

2003-04 4.32

FDI investment in India for month of February 2008 has been record $ 8.34 bn largest in a s

month so far.India continues to remain the most favorable destination for Private eq

investments in Asia(Excluding Japan) in first quarter of 2008.In second quarter of 2007,I

surpassed China in PE investments, intensified with the gap widening between two count

India has attracted PE investment worth $ 4 billion in Q1 2008 against Chinas $ 570 million.

According to IndusView Advisors, PE investments in India doubled in Q1 2008 compared to

corresponding period of 2007, due to huge fund flow into real estate and infrastructure. Th

two sectors attracted $1.2 billion, 28% of total PE investment, followed by the Power sector (

$ 520 million).

The Finance and Telecom were tied for the 3rd most favorable sector for investment with 8.7

340 million each). The momentum in India is on the rise while it may lower in China after Be

Olympic. India was lagging behind China when latter bagged $13 billion against the formers

billion. Globally, real estate and infrastructure fund raising by international real estate PE Fu

has been brisk, with $130 billion raised over last 2 years. The Governments announcement

9% of the countrys GDP will be spent on infrastructure by 2012 has created unpreceden

investment opportunity.


22/30

Frying O

Goldman Sachs Report: Crud

Crude oil may rise to between $ 150 and $ 200 a barrel within 2 years as growth in supply fails to

pace with increased demand from developing nations.

Triggers:

US service Industry expanded in April, signaling higher

energy usage.

The Institute of Supply Management index of non-

manufacturing businesses, which make up almost 90% of

the economy, grew for the first time since December.

China is increasing refining capacity and boosting imports to

meet rising demand for the Olympic Games.

China has more than doubled oil usage since November

2001 (Decade low of $ 16.7 ).

Price forecasts for spot US benchmark WTI crude Oil for

2008 to 2011 are revised as $ 108 ( 2008), $110 (2009) and

$120 (2010). These figures earlier were at $96, $ 105 and

$110 respectively.

Reasons for current Crude rally:

Dispute between the US and Iran over Nuclear issue.

Militant threats in Nigeria (Biggest Oil exporter of Africa).

Venezuela Slump: Production has slumped to about 2.34million barrels a day from almost 3 million barrels a day in

2002.before the President Mr Hugo Chavez, fired almost

20,000 workers, who had closed the State Oil Company in an

attempt to overthrow the Government.

Iraq issue: Production is yet to reach 2003 levels, as the

country struggles with sectarian fighting and attacks on its

energy infrastructure.

Mexicos production has fallen below 3 million barrels a day

since October as Petroleos Mexicanos, the state owned oil

company failed to compensate for a 30 % drop at Cantarell, its largest field, accounting for its 40% produ

OPEC President sees $200 oil possible: Chakib Khelil

In terms of fundamental, stocks are high, demand

is easing, supply is satisfactory. The prices are

high due to the fact of the recession in the United

States and the economic crisis which has touched

several countries, a situation which has an effect

on the devaluation of the $, and therefore, each

time the dollar falls one percent, the price of the

barrel rises by 4% and vice versa. If d

strengthens by 10%, it is likely that Oil price

fall by 40%.If the US economic situation imp

from now to the end of the year; it would

the market to stabilize.

US gasoline demand typically climbs going i

the summer season when Americans take to

highways for vacations. The peak-consumpt

period lasts from the Memorial Day weekend

late May to Labor Day in early Septemb

Monthly fuel sales were the highest dur

August in 5 out of last 6 years.

..And What CEOs of major O

Companies say?

Even as oil prices ascended to new high

of more than $124 a barrel this week

many oil and gas industry executives sa

they expect the price to fall significantly b

year's end, a new survey shows. Fifty-fiv

percent of 372 petroleum industr

executives surveyed by KPMG LLP sai

they think the price of a barrel of crud

will drop below $100 by the end of th

year. Twenty-one percent of respondent

predicted a barrel of oil will end the yea

between $101 and $110, while 15 percen

forecast the year-end price to be betwee

$111 and $120 a barre

Nine percent said they expect the price t

close the year where it's been this week above $120 a barrel. Participants include

executives for major oil companie

independent exploration and productio

outfits and other energy companies.

Widely watched oil price prognosticato

Goldman Sachs said this week oil price

could rise to $150 to $200 within tw

years; others say crude could plummet t

as low as $40 or $50 a barrel during th

same period.
http://economictimes.indiatimes.com/News/International_Business/Survey_says_oil_and_gas_executives_see_oil_prices_falling/articleshow/3023997.cmshttp://economictimes.indiatimes.com/News/International_Business/Survey_says_oil_and_gas_executives_see_oil_prices_falling/articleshow/3023997.cms


23/30

Guest Colum

The Journey of the Volunteers of Inclusive Education Campaign of

It all started when the Volunteer Action

division of Kolkata attempted to look at

the status of inclusion in the schools of

the city through the lens of children

with disability. Although the

discrimination against children with disabilities in

the education system is a cross cutting issue which

cuts across barriers of class, caste, gender it hardly

ever gets importance in this sector as far as

inclusive education is concerned.

There was a group of student interns from

different academic background predominantly law

who were eager to initiate the campaign on

Inclusive education through undertaking a

research study in order to find out the gap

between the existing realities and the policies that

exist. Anchored by Sruti disAbility Rights Centre,

the group endeavored to study literature and

materials that were available, in order to build

their own conviction and understanding. Starting

from designing the questionnaires, to seeking

appointments in schools for taking interview

compiling the report everything was eager

efficiently completed by the interns as their

of internship rolled to an end.

However the campaign on Inclusive Educati

not halt with the exit of the interns, a new gr

volunteers who were there to stay for a

period showed interest in joining the child

movement and education. Coming from

academic backgrounds like psych

international relations and law, this group of

privileged and enthusiastic youngsters, ha

little grounding on the issue and were

confused on what they were supposed to do

few of them volunteering in an NGO was m

do with feeding children, reading them stori

spending time with them. The first time whe

was asked what she would like to do

promptly answered: Anything. I can fee

children with disabilities, or help in ma

them.

As much as it seemed an impossible task to change their mindset on the discourse of rights

volunteerism, it was a revelation to note that right after 7 months this very girl was writing an

letter to the authorities of a Kolkata based park Swabhumi , demanding them to make the

accessible as one of her

peers in the group bound

to a wheel chair was

barred access to the park

because of its long flight of

stairs.

eers with Dr. Javed Abedi

Volunteer speak : I always knew the importance of studying together

disabled and nondisabled children in the same classroom..but did not knw how to

make it happen. Implementation of the various laws was pretty vague before i

joined, and only after working here i figure out its real picture.....- Kingshook

There is so much still left to do and I will continue to work hard till the goal is

reached. Got so much exposure, met new people I feel that I am not just a

student but also a student with responsibility towards the society. - Mandeep


24/30

Coming back to the

formation of this group, this

group of 7 students started

their work only with the

report compiled by the

previous group of interns.

While they made various

presentations of the study at different forums, they

continued to struggle with their own conviction and

myths about children with disabilities studying in

the mainstream school.

As the second phase of the study required them to

interview students with disabilities who have been

part of mainstream education, their apprehension

knew no bounds. How will we communicate with

them? What questions do we ask them? But as

they went forward, it not only became an eye

opener for them but they became the best of friends

as they chatted on phone, went to movies and

dinners together with these students who in spite of

being disabled had the opportunity to study in

mainstream schools.

This gave a new turn to the movement as the

volunteers realized the importance of their work

and what change it was going to bring in the long

run. The volunteer group also expanded with the

some of the interviewees who had disabilities

eagerly joined the group making it an inc

group.

Now as this group moves forward with filin

in court with demand for 3 % reservatio

children with disabilities in all schools

addressing press meets, it is interesting to

how they keep battling at every point with s

myths that crowd their minds and thei

experiences in the process of advocating f

rights. The conviction with which they b

media spokespersons showed how

themselves were undergoing a spectacular p

of transformation.

The group now determined to increase the s

their advocacy as well as to maintain

continuity is in a process of orienting newc

in their group and identifying ways of expand

In just a years time volunteerism has attaine

depth and meaning for these student volu

who are not only in the process of building

opinion and influencing policy but

strengthening their own conviction and

identified themselves with the movemen

issue to such an extent that they are deter

to see it attaining great height and becomin

spread in the country.

Article Contributed by

Diya Deb, CRY Foundation

Volunteers at the press meet

Want to be a part of the Campaign??

If you want to join this movement or start your own campaign on Inclusive Education in your own

please feel free to mail us [email protected]@vsnl.comfor ideas. You can a

call CRY Kolkata office at 03324148030 / 033241480 Or Shampa Sengupta @ 09433174978
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


25/30

Kalaripaya

Re-innovating Indian Culture

Kalaripayattu - The Orient's treasure trove, a

gift to the modern world and the mother of all

martial arts. Legend traces the 3000-year-old art

form to Sage Parasurama- the master of all

martial art forms and credited to be the re-

claimer of Kerala from the Arabian Sea.

Kalaripayattu originated in ancient South India.

Kung- fu, popularized by the monks of the

Shoaling Temple traces its ancestry to Bodhi

Dharma - an Indian Buddhist monk and

Kalaripayattu master.

Crafted in ancient South India drawing

inspiration from the raw power and sinuous

strength of the majestic animal forms - Lion,

Tiger, Elephant, Wild Boar, Snake, and Cr

........ Kalaripayattu laid down the combat

the Cholas, the Cheras and the P

Shrouded in deep mystery and mists of

Kalaripayattu was taught by the masters

isolation, away from prying eyes.

Following the collapse of the princely sta

the advent of free India - Kalaripayattu h

its significance as a mortal combat cod

Phoenix-like resurrection, Kalaripayattu i

emerging in a new avatar - an ancient art

a source of inspiration for self-expres

dance forms - both traditiona

contemporary, in theatre, in fitness

movies too.


26/30

Architectural Design of a Traditional Kalari

The art is trained in an enclosure called Kalari,

which is 21 feet by 42 feet. The entrance faces the

east. In the south-west corner is a seven-tiered

platform called the "poothara", which houses the

guardian deity of the kalari. These seven steps

symbolise seven abilities each person requires.

They include Vigneswa (Strength), Channiga

(patience), Vishnu (commanding power),

Vadugashcha (the posture), Tadaaguru (training),

Kali (the expression) and Vakasta - purushu

(sound). Other deities, most of them incarnations

of the Bhagavathi or Shiva, are installed in the

corners.

Origin and Evolution

Kalaripayattu is perhaps the most ancient martial

art in the world. Religions have incorporated

Kalaripayattu into their realm. The origin of

Kalaripayattu is still in the midst of obscurity.

Traditional Kalari masters attribute mythological

stories and legends to the origin of the art.

Legend traces the 3000-year-old art form to Sage

Parasurama- the master of all martial art forms

and credited to be the re-claimer of Kerala from

the Arabian Sea.

At the turn of the 6th century A.D., martial arts

spread from Southern India to China by Daruma

Bodhidarma - an Indian Buddhist monk and

Kalaripayattu master. From China, martial arts

have spread to Korea & Japan. Kalaripayattu is

derived from the words Kalari - which means

"place, threshing floor,

or battlefield", and payattu - which me

"exercise in arms or pr

Martial arts have been in existence on the

sub-continent for thousands of years. Lo

animal fighting styles were imitated b

historic man which was a system for surviv

first weapon used was the stick which

extension of the arm. Various weapons we

invented during the Stone and Iron Ages.

Vedas they have mentioned about mart

Kalaripayattu is one such martial art, Cra

ancient South India and draws inspiratio

the raw power, majestic strength and ins

fighting techniques of animals like lion

elephant, wild boar, crocodile

It is significant that some Kalaripayattu m

trace their lineages of practice to "Dhanu

and claim that the texts in which their

techniques are recorded derive from

Vedic texts. Although the Dhanur Veda me

"science of archery," it encompassed

traditional fighting arts. The explicit con

Dhanur Veda texts is not with bat

strategies, but rather with training in

techniques.

The Dhanur Veda opens by cataloging the s

stating that there are five training divisio

warriors on chariots, elephants, hor

infantry, or wrestling), and five types of w

to be learned (those projected by m

[arrows or missiles], those thrown by the

[spears], those cast by hands yet r

[noose], those permanently held in the

[sword], and the hands them


27/30

Most of the final Chapters are brief descriptions

of postures and techniques for wrestling and the

use of a variety of weapons including noose,

sword, armors, iron dart, club, battle axe, discus,

and the trident. A short passage near the end of

the text returns to the larger concerns of warfare

and explains the various uses of war elephants

and men. The text concludes with a description

of how to appropriately send the well-trained

fighter off to war.

Kalaripayattu reached its pinnacle of glory during

the 100-years-war between the Cholas, Cheras,

and Pandyas in the early part of the first

millennium. The warring states refined the

fighting skills and techniques prevalent in the

area into a martial art form. The art flourished

between the 13 and 16 centuries, becoming a

part of the education of youngsters. It was a

social custom in Kerala to send all youngsters

above the age of seven to learn Kalari.

The inherent beauty of this art form lies in the

harmonious synergy of art, science and

medicine. The various movements in Kalari are

based on animal movements. Several poses are

named after animals. Hence it is generally

believed to have developed in the jungles when

hunters observed the fighting techniques of

various animals.

The death blow to the Kerala military system and

Kalaripayattu was dealt by the British. When the

Malabar Province was ceded in favor of the

British by the treaty of Seringapatam in 1792,

there were a series of revolts in Malabar. The

revolt led by Pazhassi Raja was well supported by

the Nair soldiers and Kurichya trib

Wayanad. The British dreaded the wide

Kalari training and objected to the tra

system of carrying arms by the Nairs. T

Malabar commissioners found it essen

unarm the entire region to establish tran

Major Dow's direction in this regard,

worthy.

On 20th February 1804, Robert Richar

Principal Collector of Malabar, wrote t

William Bentinck, President and Ge

Council, Fort. St. George, asking permis

take action against persons carrying arms

imposing death penalty or deportation

Lord Bentinck issued an order on 22n

1804, that those who concealed weap

disobeyed the orders of the British

carrying arms would be condemn

deportation for

At the time of the Pazhassi rebellion,

soldiers raided each and every house

rebels to confiscate their arms. The

situation repeated in Travancore at the

the revolt orchestrated by Velutham

Dalawa of Travancore. These developme

to the slow deterioration of Kalaripayat

there were a few Kalaripayattu guru

worked selflessly to keep this tradition of

art alive for the future generations by t

youngsters away from the prying eyes

British


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Kalari's influence on other arts

Kalaripayattu has strongly influenced the evolution of several of Kerala's theatre and dance

most prominently Kathakali and Theyyam. Kathakali practitioners are required to train unde

masters to develop various attributes such as fitness, stamina, and martial movements enacted

performances. Kalari practitioners claim that Bodhi Dharma, a Buddhist monk who was respons

training the Shaolin monks in kung-fu, was in fact a Kalari master.

Resurgence of Kalaripayattu

Following the collapse of the princely states and the advent of free India - Kalaripayattu had

significance as a mortal combat code. Fortunately, Kalaripayattu has successfully survived the

and sad decline in popularity. Kalaripayattu now has a compelling global audience and its fa

glory has won hearts all over.

In a Phoenix like resurrection, Kalaripayattu is today emerging in

avatar - an ancient art form - a source of inspiration for self-express

dance forms - both traditional and contemporary, in theatre, in fitne

in movies too.

TRADITIONAL KALARI TREATMENT

The training of a student to become a master includes the training in Ayurveda and in locating t

points of the body. A Kalari Guru is not only a trained movement artist but also a professi

Ayurveda, a doctor who treats people of diseases and general ailments. Kalari has devel

traditional orthopedic system which is widely popular all over the states, especially for the se

displaced bones. There are different types of Oils, pastes, herbs etc are used only by kalari mas

treat muscle and bone injuries.

Kalari Massage

The first stage of the preparation of a warrior and the artiste is based on oil massage kn

Udvarthaizam or Uzhichal. The Ayurvedic tradition of Susrutha says that diseases are af

approaching a body which has been foot-massaged, just like animals in the sight of a lion.

Kalari massage is a traditional massage, performed by the therapist using his hand and feet, a

appropriate pressure to specific vital parts of the body. It involves a full body massage with me

oil and stimulating or massaging the Marma points on the body.

Usually an uzhichil course lasts for fourteen days. At the time of this massage the student has to

strict restrictions in his or her daily routines. He should not expose to the sun for a long time

take only the prescribed food and drinks and should follow strict celibacy.


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Massage helps the body to attain a healthy constitution as well as flexibility, nimblene

suppleness. Moreover, massage enables proper blood circulation and easy maneuverability of th

for turning and twisting. Kalari massage not only relieves back pain, stiffness and sports injur

also stimulates various bodily organs and systems.

Marma points

Marmas are certain vital points of the body. A marma point is a juncture on the body where

more types of tissue meet, such as muscles, veins, ligaments, bones or joints and 'where the P

present'. There are total 108 Marma points in the body in which 64 are considered as kula

(deadly points). These points could be used to heel or to harm. If these points are pierced hard,

result in trauma or even death. A kalari masseur uses the Marma points to heal.

More information can be found on;

http://www.kalaripayattu.org

Kalari Academy of Performing Arts.

#25, V N Plaza, Bazaar Streest, Brigade Cross Road, Bangalore - 560025. India.

Mobile 91-99451 55995 Ph 91-80-41127789

Email:[email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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