• What according to you is the support required from the Government to overcome this situation?

 

For the third query, which is very relevant and important to consider very seriously by industry, Government authorities and institutions to set up or introduce schemes for Training to all the categories to upgrade the level of skill and expertise not only the production segments but from fiber to marketing, including production support services, management, finance, logistics and specially to unorganized and exclusive traditional Indian products. This is apart from considerations of environment and eco-friendly requirements. This will cover value additions not only in products but in services also. Overall complaints from the textile companies is not getting the well trained and right kind of technicians and Managers when the industry is changing technology and locations.

 

Mr. Sampat Kasairajan, MD, Hydra Consulting, feels that the economic impact may continue right through the next year and year after with 2009 experiencing some very intense set backs. In that respect, the retrenchment will continue with labor intensive, export dependent industry suffering the most. It is not permanent but when the economy begins to be pick up the mosaic may look different

While sharing his thoughts about the situation in the neighboring countries, he states that, the Industry which is heavily dependent on Exports and totally labor intensive will suffer the most. In that regard, all the 4 countries are heavily reliant on exports. Chinas export is about 600 billions plus. In relation to India, these countries will suffer more.

When F2F asked him, the inevitable question, What steps are being taken by your company to overcome the recent crisis? Mr Kasirajan listed them out.

 

Step 1:	Putting our entire focus on offering our best of services to our existing clients.
Step 2:	Re-look product and service mix.
Step 3:	Focus and follow up on business leads that are close to translating into a deal, if required, re- negotiate requirements.
Step 4:	Focused Marketing efforts rather than spreading the resources thin.
Step 5:	Reduce or eliminate all non-value adding tasks and activities and wherever possible re-engineer core processes to achieve cost efficiencies.
Step 6:	Reduce fixed costs components and wherever possible turn fixed costs into variable costs by outsourcing non critical / clerical work.
Step 7:	Begin research, and work on new innovative products and services with higher perceptional value
Step 8:	Reduce pipeline investments.

Elaborating on his context, Mr. Kasirajan further listed out his expectations from the Government to overcome this crisis. He said that the task should be undertaken in three phases.

Phase - I Insulate the weaker section of the society from the impact of this crisis:

• Slash price/ subsidize price of all essentials being distributed through the PDS.
• Increase no, of days under NREGS and make it a 365 days work guarantee in the most sensitive and vulnerable areas such as those in Orissa. The Government cannot have an across the board 100 day programme for all locations.
• Increase public expenditure on Infrastructure generating enough work for the weaker section, while pumping more money circulation into the economy.