An introduction

Bitcoin is a digital currency created by Satoshi Na-

kamoto. Bitcoin was conceived in Japan in 2008

but it became operational in 2009, similar to wallet

on some e- commerce website which can be used to

purchase goods online. It is a crypto currency be-

cause it uses cryptography to control the creation

and transfer of money.

Advantages

Low transaction fee (almost zero) versus transac-

tion fees (2-4%) charged by credit card companies

and anonymity led to rising

Mr. Manish Tandon Executive Director

Amira Foods (Delhi)

Ques 1: What all are the challenges/opportunities that volatility in rupee has

presented to you?

Ans: That’s a very interesting question, see as far as Indian exports are con-

cerned it is definitely an opportunity because the realisation of dollars is

higher. I would say opportunities are immense when it comes to dollar cross-

ing over a certain limit, we become more competitive. The moment dollar

crosses threshold, opportunities are there for the exporters and people have

tapped it.

Business persons have always been concerned with their own

profits, but huge pressure from society has forced them to sit and

think about their means of profits as well. The need of the day is

genuine business responsibility and societal trust in business.

In earlier days the organizations were having a common thinking

that “the business of business must be only business, the rest was

none of their business”. Many of US based Business Corporation

has made huge profits for their owners in 20th century and some

have created trust in their name through philanthropy. . But the

damage that these companies had done to the environment and

community in course of

Cont...on Page 4

IN THIS ISSUE:

CORPORATE SOCIAL RESPONSIBILTY ...……….……….1

BITCOIN: LATEST GLOBAL CURRENCY………….………1

CORPORATE SPEAK ……………………….……...1

QUOTE FOR THE MONTH…………………. ……….4

Volume 3 , Issue 1 January 2014

Masters of International Business , Centre for Management Studies ,

JAMIA MILLIA ISLAMIA

CORPORATE SPEAK Bitcoin: Latest Global Currency

Cont….on Page 2

COMPANIES’ OVERVIEW…………………….…….. 3

Corporate Social Responsibility

Cont….on page 2

making profit led to creation of many laws to constraint

their conduct.

Douglas C North received the Nobel Prize in economics in

1993 for his work on the development of institutions and

their role in human progress. He defined institutions as the

“humanly derived constraints that structure political, eco-

nomic and social interactions. Constraints, he said, are de-

rived as formal rules including constitution, laws, property

rights and informal restraints include sanctions, taboos,

traditions and codes of conduct. There is definitely some

force driving political and economic institutions in 21st

century. This storm has been caused by recent collision of

many forces which are strengthening with time. They are

open market system democracy and principle to human

rights, the growing awareness towards the usage of earth to

expand economies and availability of information to people

everywhere through advancing means of communications.

The new Indian Company Law that received the Presi-

dent’s assent includes novel provision which made it com-

pulsory that companies should spend 2% of their profit on

corporate social responsibility. However there is a buzz

about matters of details, such as what will include genuine

CSR expenditure and how and who will certify it. Whereas

we must examine the effect this expenditure of 2% of prof-

its will have on the direction we want the business to take,

the improvement of genuine business responsibility and

societal trust in business.

As far as challenges are concerned, this volatility is not good. You can make temporary profits but if you are talking in general look-

ing at the top, in the long term it’s not conducive for trade. This situation definitely impacts Indian economy and it is not good for the

country. If you specifically talk about exports it might give a monetary gain but overall i think if the currency is stable exporter are

more focused and certain in their working, allowing them to make long term and medium term decisions.

Ques 2: In today’s competitive market, how do you maintain your share of global trade, as Pakistan and Vietnam are providing the

same commodity at a competitive price?

Ans: India has a soil structure which gives you better length on your basmati plus the disadvantage with Pakistan is the technology.

Their technology know-how is not so strong, when I am saying this I am specifically referring to parboiled (Partially boiled in the

husk) rice if you compare their parboiling structure. Normally in the European market or in United States or United Kingdom i.e. in

the developed world where basmati is most consumed, Pakistani basmati is not very well accepted as aflatoxin levels are normally

higher because most of their plants don’t have proper driers. Indian basmati is preferred worldwide. If you go to the interna tional

market and you talk about Indian basmati it will be preferred because of its quality.

But it is an implementation nightmare with no proper enforcement

mechanism. Only minimum requirement are prescribed and the ac-

tual implementation of the policy is left to the company itself. The

bill does not seek to implement or enforce the CSR policies of indi-

vidual companies to monitor and regulate the activities under it.

CSR policies and reports are usually designed to inform investors,

shareholders and other stakeholders about the social and environ-

mental performance and philosophy of a company rather than to

satisfy government scrutiny.

The fear is that so called CSR may enjoy greater legitimacy and

state support with this bill. CSR as imagined in the bill is ineffective

without corporate accountability. There are as many CSR policies as

many companies i.e. if a company is spending on educational insti-

tutions to safeguard the interest of beneficiaries of such projects, the

content and quality of curriculum, assessment and improvement

have to be insured. It is well known that it is not in the DNA of the

companies to altruistic. If companies engage in CSR activities it is

usually in pursuit of short term or long term benefits. Growing cor-

porate interventions over economic and political affairs has led to

some critical social issues of today and it may be prudent to avoid

such influence in social policies even under the garb of CSR.

By-Tabish Md Jan

1st Year MIB,JMI

Page 2

Corporate Social Responsibility Cont…..from Page 1

Cont….from page 1

Ques 3: Which are Amira’s potential markets for Indian Rice, apart from MENA (Middle East

North Africa) region (where Indian rice is widely accepted)?

Ans: MENA region, if you focus more on Middle East it’s the chunk which goes. Iran is the high-

est and biggest importers of rice they touched 1 million tonnes of import only from India. Saudi

Arabia is the second close to about 640-650 thousand tonne of imports and UAE is third. Except

this, basmati is consumed mainly in the United States and United Kingdom market, which is basi-

cally the developed world. So these are the other potential markets. United States and United

Kingdom are premium end basmati consumers and a lot of volume is flowing from India.

Ques 4: How do you position your packed rice in the domestic and international market against

your competitors?

Ans: When you say Amira, you talk about quality. Our positioning is on the top end, it’s a luxury

premium brand. Even at small retail stores you will find our rice offers you the best quality best

price and it is top notch product. Now trend is changing people have more spending power, they

are willing to spend more on their food and Amira is giving them value for money. Once you taste

a product which is superior automatically sales would come in. We are focusing on marketing

part-domestic as well as international. Quality will sell; people will come back and buy.

Ques5: Do you think that the government policies are conducive and supportive for the rice in-

dustry or there is a need for reforms?

Ans: The only point i can say here is that Indian government has to be more stable. So far the

government policy has supported and promoted the export of basmati.

Ques 6: What will be the impact of FSB (food security bill) on the domestic and international

trade of rice?

Ans: FSB is not going to impact normal trade or the exports of basmati rice, not at all. I think it

won’t have any impact on Amira selling the rice or any other company selling the rice in the do-

mestic or international market.

Ques 7: what are the basic qualities a person should have to excel in international trade?

Ans: ( laughs)..... the most important thing is to be focused. International trade is very technical

in the sense that it requires a lot of knowledge on documentation, logistics, government schemes

and benefits which you get out of exports. so off course you have to be well prepared and learn

these things. The most important thing is to be focused in life in whatever you do be it interna-

tional trade or any other trade.

Ques 8: What will be your message/advice to international business students at Jamia Millia Isla-

mia?

Ans: What I can say is that whatever you do don’t lose your concentration. You need to know

where your strength lies and you need to work on your strength. Identify your strengths work on

them try and improve. Rather than master of all you become jack of none. If you want to excel

you need to be thoroughly knowledgeable about lines which you are choosing do that and In-

sha’Allah I am sure you will reach wherever you want to be.

About Amira Foods

AMIRA group was founded in

1915, Amira has evolved into a

leading global provider of pack-

aged Indian specialty rice, with

sales in over 40 countries today.

Amira Foods generate the major-

ity of the revenue through the

sale of Basmati rice, a premium

long-grain basmati rice grown

only in certain regions of the

Indian sub-continent, under

Amira flagship Amira brand as

well as under other third party

brands.

Amira Foods fourth generation

leadership has leveraged nearly a

century of experience to take the

Amira brand global in recent

years. Amira Foods recently

launched new lines of Amira

branded products, such as ready-

to-eat snacks, to complement

Amira Foods packaged rice of-

ferings, and we also sell bulk

commodities to large interna-

tional and regional trading firms.

———————

Page 3

Cont…..from Page 1

popularity of bitcoin. Bitcoin is

not affected by high and low of

inflation. With bitcoin, money

can be received or sent any-

where and anytime without a

bank acting as an intermediary.

Bitcoin can be exchanged and managed through various web-

sites (Like www.bitcoin.org or

www.thevillage.me) and soft-

ware along with physical bank-

notes and coins.

Number of websites accepting

bitcoin as a payment is increas-

ing gradually. It is neither is-

sued by a bank nor by any gov-

ernment, also are they not even

recognized by any regulatory

agency or any government

body. Newly minted bitcoin are

given to bid coin miner who

perform complex calculation to

verify bit coin transaction to

prevent misuse of currency.

Bitcoin has been a subject of

security due to ties with illicit

activity. Bitcoin is free from the

problem of double spending as

it verifies each transaction

added to the block chain. Total

number of bitcoin in the world

is limited to 21 million, around

12 million bitcoin are in circu-

lation now. Trading bitcoin for

paper currency take place in

bitcoin exchange such as Japan

based MT GOX or till recently

B.T.C China.

BITCOINS AND CHINA

After the introduction of bitcoin

in 2009, the value of one bit-

coin surpassed $1100 in 2013, thanks in large part to a surge in speculative interest from

“The brave may not live forever, but the cautious do not live at all!"

Richard Branson Founder Virgin Group

Masters of International Business,

Centre for Management Studies,

Jamia Millia Islamia

E-mail: Suban.ajam@gmail.com,

habib.siddiqui100@gmail.com,

9650430820,8285817199

For Previous Editions Pleases Visit www.jmimibytes.webs.com

EDITOR-IN-CHIEF:

MS.SUNAYANA KUMAR

Assistant Professor.

CMS, JMI

STUDENT EDITORS:

Michael Akbar

Habib Ullah Siddiqui

Suban Khalique Ajam

INTERVIEWED BY:

Suban Khalique Ajam

Uddipan Sharma

CONCEPT AND DESIGN:

Samik Sarkar

WEBSITE DESIGNER:

Mohd Ibrahim Badar

China. BTC China capitalised

this opportunity and met the

demand thereby becoming the

world’s largest bitcoin ex-

change.

BTC China handled around 1/3

of world’s bitcoin transactions.

The country has recently forbid

banks and payment processors

from converting bitcoin into

Yuan.

RISK ASSOCIATED WITH

BITCOIN

The anonymity associated with

bitcoin with respect to transac-

tions has made it a useful tool

for transfer of fund by criminal

or purchase of illegal item. It is

the world’s most volatile cur-

rency. There is no regulator for

the currency which is a major

concern for the governments

worldwide which makes it diffi-

cult to track thieves and those

dealing in black money.

Most common vulnerability

associated with the bitcoin is

that bitcoin wallet can be acci-

dentally deleted, lost or stolen.

INDIAN ANGLE

According to the Wall Street

Journal, India is among the top

30 bitcoin using countries.

There are 30000 Bitcoins in

circulation in India and 50 com-

mercial establishments have

been using it. These establish-

ments include restaurants, sa-

lons, etc. A report in tech

crunch an American technology

website says a salon in Chandi-

garh became 1st shop in India

to officially accept bitcoin.

Some entrepreneurs in Ben-

galuru have teamed up to form

the Bitcoins Alliance of India

Bitcoin: Latest Global Currency

Cont…..from Page 1

Quote For The Month

(BAI), so as to decide how

they want to lobby for the

acceptance and use of Bit-

coin in the country. Fur-ther, KOENIG an IT SO-

LUTION PROVIDER has

launched a training course

in bitcoin, it has designed

a 4 day programme, the

course will be offered from

all Koenig centres in India.

A very important step is to

set up a bitcoin exchange

in India, but this setting up

of exchange in India is

possible only with ap-

proval of regulatory bodies

like SEBI and RBI.In De-

cember 2013, RBI asked

some of the bitcoin traders

to suspend their operations.

The RBI is worried about

security, legal and financial

risks. These risks include

losses due to volatility,

money laundering, etc.

By—Michael Akbar

2nd Year MIB,JMI

Page 4