Vikalpa: The Journal for Decision Makers

Corporate India has been steadily restructuring itself through mergers, acquisitions, divestitures, and other means as it repositions itself in the post-liberaliza tion environment. While examining the restructuring trends, N Venkiteswaran asserts that the restructuring phenomenon is set to gather pace in the coming months.

Based on a sample of respondents — both owners and non-owners of telephones—drawn from two cities of Gujarat as well as three corporate houses of Ahmedabad, this study by S. Manikutty identifies issues regarding estimation of demand for telephone connections and services and draws implications for the government including the role of TRAI.

India has undertaken a number of economic and telecom policy reforms such as private participation and introduction of competition both in basic and value-added services. Legislation to set up a Telecom Regulatory Authority of India (TRAI) has recently been enacted in the Parliament. This paper focuses on the proposed structure, scope, and functions of TRAI in the context of some of the critical issues facing the Indian telecom sector and analyses its role in addressing these issues.

This paper is a preliminary exploration to develop a methodology for assessing the technological capabilities and needs of the telecommunications sector in India. It makes a case for strategic policy interventions to build adequate domestic capabilities in this crucial sector with significant externalities. The authors develop a model for mapping technological capabilities through the concept of a technology supply chain and establish the role of complementary assets (like manufacturing withim and outside the sector) in developing and appropriating technologies. They argue that policy initiatives need to be based on these considerations. A brief review of Asian experiences also supports this point of view.

This paper by Sidharth Sinha reviews the emerging competitive structure of the Indian telecom sector, identifies the constraints within which the private sector is expected to operate, and discusses issues related to interconnection cost and quantity. It also looks at the regulation of tariffs in the context of cross-subsidies in the existing tariff structure and identifies areas for further work.

An overall perspective of the telecom section in India—the existing situation, growth in urban and rural areas, development strategies, and the future growth—indicates that the deployment of resources in this sector has been abysmally low. This paper by S D Saxena discusses the various instruments for financing this sector and suggests a mix of equity participation and debt for future growth.

What is the effect of value-added tax (VAT) on the capital structure and profitability of a firm? Based on the study of Premier Breweries Plc in Anambra State of Nigeria which manufactures beer, this paper by C.J. Arene and S.O. Ndomadu concludes that imposition of VAT has resulted in reduction in consumption as well as. sales volume leading to reduction in production capacity and net profit margin of the company.

The case featured in this issue deals with international marketing strategy and current business conditions in India particularly in the field of home water purification devices. Rahul Chatterjee is entrusted with the task of gathering background data on the possibility of Blair Company entering the competitive Indian market for home water purification devices. The data would be used by the executives to make a recommendation on market entry and on elements of an entry strategy.

Readers are invited to send their responses on the case to Vikalpa Office.

The January- March 1997 issue of Vikalpa had carried a Management Case titled “Oil and Mineral Excavating Company Limited” by Mousumi Ghosh which addressed the problem of non-receipt of two vital equipments on time due to which drilling operations of an oil company had to be suspended.

In this issue, we feature three responses on the case by Hrishikes Bhattacharya, B Mohanty, and N Ravichandran.

As the market is becoming more and more competitive, a careful analysis of the environment and domain of operations of the industry and a well thought out set of strategies has become imperative. In this article, the authors address the opportunities thrown open to the auto-rubber component industry by the economic reforms and the probable areas of growth in the sector. An attempt has been made by them to carry out a brief and unbiased audit of the industry, the market, and other external influences that affect the autorubber component industry.

This section features abstracts of articles covering empirical studies, experiences, ideas, and theories published in Indian and international journals. Sponsored by the Indian Council of Social Science Research, New Delhi, this service is intended to facilitate Indian management research.

Authors desirous of having their publications considered for inclusion in this feature may please send reprints of their articles to Vikalpa Editorial Office.