Notings from C K Prahalad's "Fortune at the Bottom of the Pyramid"

I was deeply sceptical about the buzz this book generated when it was first released in 2005. The scepticism kept me away from it for all these years. I felt that preaching to corporations to look at the bottom of the pyramid(BOP) as a viable market and linking this povery allevation was too far fetched and moralistic. I believed then, and still believe now, that if there is a market,  corporations will reach it without you having to tell them. If corporations stay away from certain markets, then it is because they are not equipped to serve them profitably - the issues might range from distribution, to flexibility, trust, product fitment, etc.

However, recently I glanced at this book in the library and it struck me that I had never read it. Reading it from the library meant that I'd have saved myself a solid Rs. 500 by borrowing it instead of buying it. The offer was too good to refuse, and so, I borrowed it. I've been reading from it in small doses, and I must say, I was wrong about the book. It does hold very interesting insights about the BOP market. I still find the bits where the author sermonizes about poverty allevation a little hard to digest. But the sections where he lists down the characteristics of BOP markets and lays a framework for approaching them, are extremely interesting and insightful. As I read the book, I shall keep making notes in this blog entry. Here goes the first one...

1. Do the poor have enough money to spend? CK Prahlad makes an interesting observation about how the general public and marketers get put off by the filth and squalor that surround the urban poor in slums. The dirty surroundings lead us to believe that the poor don't have the capacity to pay, and even if they do have some money, they would rather spend it on improving the condition of their sanitation and immediate living quarters rather than splurging on consumers goods and durables. This is a wrong assumption. Prahlad proves this by citing the example of the Dharavi slum dwellers. Dharavi has no sewage system or running water, and yet Prahlad's study shows that it has 90% TV penetration. This is no exaggeration. On a recent visit to Mumbai, I remember how I was dumbstruck at the sight of DTH antennas sticking out off hutments lining the Western-Express Highway. This effectively disbunks the theory that slum dwellers have no purchasing power and are hence not a viable market. But if they do have money, why don't they spend on improving the condition of their immediate living quarters? As Prahlad says, they choose not do so because they don't have proper title for the land they stay on. Hence, they prefer to spend on movable property like TVs and mobile phones that can move with them, in the event that they have to vacate quarters. If marketers wake up to the fact that there is such a large BOP population that buys their products, they would perhaps be in a better position to tailor their offerings to increase uptake from this segment.

Prahlad also offers an interesting insight about the poverty penalty that slum dwellers have to pay. On average every item that they spend on comes at a higher cost. Slum dwellers pay a 200-300% rate of interest when the borrow money from money lenders. Likewise, all other utilities come at a higher tax imposed by the informal market eco-system that has sprung up in the absence of regular market players. If a financial services company where to figure out a way to serve this market and charge an interest rate of 25% (nearly twice the normal lending rate) they would run a profitable venture that is beneficial to both the lender and the borrower.

Of course, servicing this market is not easy. The biggest challenge is adapting to the cashflow limitations of buyers in this segment. Though this is a major hurdle, it is not intractable. As cited in the book, several companies have managed to work around the problem. In India, over the last few years, NBFCs have started venturing into this market with small customized loans.

Elsewhere in the book, Prahlad says that companies should actively start engaging with these markets and try to incorporate them into their existing business expansion plans. I defer on this view. More on this later...Cheers.

My Rotator Cuff Injury

The latest injury I've picked up is a torn rotator cuff. It happened a month back. While I was rushing up the stairs in Mumbai, where I had travelled for work, I tripped and fell forward and landed heavily on my outstretched shoulders - as if I were doing a push up on the stairs. My left shoulder let out a popping sound, and I knew I was in trouble. The pain wasn't delibitating, so, I ignored it for two days (in hindsight RICE - Rest, Ice, Compression, Elevation - would've helped in those two days immediately after the injury). The day after I landed in Bangalore, I visited my orthapaedic doctor and he diagnosed the problem as a rotator cuff injury.

The rotator cuff is a group of four tendons and muscles that surround the shoulder joint. They connect the bone of the upper arm with the shoulder blade and the collar bone. It is a complicated joint that supports the whole range of motions of the shoulder joint. When a tendon gets damaged here, mobility of the shoulder gets severely affected. There is a throbbing pain that is difficult to locate. It typically originates at the shoulder joint and runs down the outer part of the upper arm. Lifting your arm above the head becomes extremely painful.

Since this area is very cartilaginous, there is limited blood supply to the joint. Hence, an injury to this region takes a long time to heal. From the literature I've read, I believe it takes two months on average for a mild rotator cuff injury to fully heal. My doctor advised me to rest my arm, stop doing exercises of the upper body and give the affected area an oil massage everyday. The oil massage is to generate heat near the joint and improve blood circulation to the area. I neglected the oil massage during the first few weeks, because I didn't know the significance of it. But after figuring out the blood circulation theory, I've been religiously massaging my shoulder and there's been a marked improvement ever since. Many people who've been through such injuries don't know of this theory about blood circulation and tend to give cock and bull stories about why shoulder injuries take so long to heal. After hearing a whole bunch of such stories with exasperation, I did my research and found a seemingly plausible explanation that I thought I'd share with the rest of you out there.

A shoulder injury is extremely frustrating because it severly impedes your fitness and sports routine. I've stopped gymming and playing cricket and tennis for a month now. By the looks of it, it would take another month before a full recovery. Sigh.....if only I'd walked my way up those stairs in Mumbai.

ps: There is loads of online literature on the subject. The following link is a good place to start http://orthopedics.about.com/od/rotatorcuff/tp/rotatorcuff.htm .

"Hanumanji ka meeta"

Many years ago, while we were in Nigeria, I am told we had a family friend called Mishraji. He was a portly man in his fifties, had greying hair and was well-liked for being a generous host. Mishraji's wife, a great friend of my mother's, was a demure lady and couldn't hear or speak due to congenital deafness. My parents met the Mishras at the weekly bhajans where the South Asian community in the neighbourhood would gather. At the bhajans, Mishraji was legendary for his persistance while singing. People would squirm in their seats while he would stretch the last bhajan to the limits of sonic endurance with his booming voice.

Mishraji loved inviting people over to his house and my parents used to be regulars on the guest list. During every visit, Mishraji would offer homemade sweets as prasad - "Hanumanji ka meetha". On the rare occassion, when sweets weren't ready, he would call out to his wife - "Hanumanji ka meeta nahi banaya kya?" and after a short while, freshly prepared sweets would emerge from the kitchen in honour of the monkey god.

It has been over 20 years since we left Nigeria, but still every once in a while, when my mother prepares a sweet dish, she arrives at the dining table with a flourish and announces, "Hanumanji ka meeta" and we all break out into a hearty laugh. Mishraji's message endures. He liked his sweets and he liked his god. It was only fitting to combine the two and chant - "Hanumanji ka meeta" - in celebration of life and its gracious provider.

The Secret Society of Secretive People

As the name suggests, 'The Secret Society of Secretive People' (TSSOSP) is a secret organization of secretive peole. It is so secretive, that few secretive people know that it exists. The few who know, don't know where it is, because that's a secret. The fewer who know where it is, do not know how to apply, because well, that too is a secret. So, one wonders, why have such a secretive oraganization at all? Well, those who are secretive would tell you, that's a secret.

Movie Review: Public Enemies - an interesting watch

Now, 'Public Enemies' is not the sort of movie everyone would enjoy. It is an experimental movie - at least I've not seen this docu-drama style of movie making being attempted at this scale - and as with all experiments, you need a little patience and an open mind to appreciate the freshness that it brings to the movie watching experience.

The movie was shot with a high definition hand camera and this technique gives the whole movie a touch of understated realism. It gives the viewer the feeling as if he/she were participating or observing the events in real life. I distinctly remember the scene wherein Dillinger is arrested and brought to the Lake County jail in Indiana. A hastily arranged press conference is shown. As you watch people hustling in and out of the frame, you feel as if it were an amateur video shot at home - this is not to suggest that camera work is shoddy, instead, the skillfully handled handycam jerks serve to enhance the realism of the scene.

With such camera technique, the director is forced to dispose off with familiar cinematic crutches like background music and over the top acting, because they'd appear very tacky. Hence, silence is used as a tool to enhance the dramatic effect of many scenes. In fact, this movie must rank as one of the quitest movies I've seen. There is a sense of peaceful silence pervading most scenes, there are no unnecessary noises made by the cast or the crew. Background music is used sparingly and is usually heard as a tool for scene tranisitions.

With such a bare canvas, the actors' performances come under intense scrutiny. Bad actors are thoroughly exposed. The only way to retain the audience's interest is by breathing life into the movie's characters. Johnny Depp is outstanding as John Dillinger. He makes the role his own. He puts up a thoroughly convincing act as the bitter and ambitious Dillinger who is out to conquer the world, knowingly mindless of the consequences. The camera puts intense pressure on Johnny Depp; in many frames, the entire drama rests on Johnny Depp's expressions and he carries them off with aplomb. Kudos to the performer. On the same note, the French actress, Marion Cotillard has put in a brilliant performance as Dillinger's girlfriend, Billie Frechette. The other star of the movie, Christian Bale, puts in an effecient performance as Agent Purvis of the FBI.

Many people in the theater, who watched the movie with me, were restless and visibly bored. If you sit back with your pop corn and expect to be entertained over the din of your phone and text messaging, the movie won't work. You will have to do some prep before hand by reading about Dillinger to appreciate the context of the movie and then keep your mind and ears open during the show to figure out what the characters are saying. There are many superb lines throughout the movie, sample this -

Dillinger to Billie: "I like baseball, movies, good clothes, fast cars, whiskey, and you... what else you need to know? "

John 'Red' Hamilton: "We don't work with people we don't know. And you don't work when your desperate. Walter Dietrich. Remember that?
John Dillinger: Walter forgot. When your desperate, that's when you got no choice.

All in all, a nice movie. Wouldn't mind catching it on TV or DVD another time. Cheers.

Find below some cool Dillinger videos I found on youtube:
http://www.youtube.com/watch?v=Zz0jtGGO7VE

Comings and goings

“It’s a funny thing coming home. Nothing changes. Everything looks the same, feels the same, even smells the same. You realize what’s changed, is you.”

- The Curious Case of Benjamin Button, Paramount Pictures, 2008

As I'm on the verge of packing and moving for the third time in as many years, this quote sums up the feeling...

Lunch Break! As a kid and a grown-up

At work the other day, as I was munching on my home packed lunch, my mind wandered back to my schooldays when lunch break used to be so much fun. In fact lunch break used to be the highlight of the entire day at school. If I remember right, we had a 45 minute lunch break and boy, we packed in so much in those 45 minutes. Those 45 minutes where when reputations were built and destroyed on the football field, adventures where had while sneaking out of the school premises, friendships and rivalries were cemented through fist fights and brawls, petty monetary exchanges of all sorts were transacted - man, those were heady times!

In comparison, my lunch breaks today are so boring. I either quickly wolf down my lunch and rush back to work, or lounge around with colleagues and wallow in the latest office politics. Being in school was fun...sigh...

My near perfect 27th birthday...

I turned 27 today and had a really nice day throughout. I don't quite remember how I celebrated my previous birthday, but this one was a blast and so, I thought it was worth writing about.

For starters my birthday this year was on a Sunday. Now, how can anybody go wrong with a birthday on Sunday!

The day had an ominous start with me managing to pull myself out of bed at 6.15 am (this ain't easy, I swear) for my horse riding class. The riding session went off reasonably well. I did a few rounds of trotting in the training area all by myself. After class, I fed my horse carrots and then stopped by the berry tree to pick a handful for mom. So far so good.

On the way back, I stopped over at my favourite South Bangalore eatery - "Halli Thindi"- and wolfed down a dosa with coffee and packed idlis for home. Once I got home, my cousin called to wish me and suggested we have a get together in the afternoon. I took the cue and asked a few others to join in and voila, everyone agreed! So at noon, a loud, spirited gang assembled at home for a grand pot luck lunch. Lunch was followed by an extended ragging session, where everyone pulled everyone else's leg till we couldn't laugh any more. Then we cousins, played our mandatory round of cricket in the front yard. That was followed by an extended "chai" session that dragged on and on, till no one had anything left to chat about.

Finally, when the cousins packed off late in the evening, I got a chance to open my orkut page and gmail to read the birthday messages and boy, was I thrilled! Every year, I look forward to this. Reading messages from friends accumulated through the years is an exhilarating feeling. Jogging your memory back to the days when those friendships were cultivated is a pleasant experience. I had messages from my high school gang, graduate school buddies, friends from my first job, classmates at the MBA school, colleagues from work. I replied to each one of them with a broad smile that refuses to go off, even as I type this entry many hours later.

Later at night, at the dinner table, dad narrated a funny anecdote related to my birth (there are loads of them, I created quite a stir before arriving). I believe, what happened was that when I was born, my relatives sent a telegram to dad, who was in Nigeria then. Dad's colleague, Mr. Khan, received the telegram and passed on the news to Mr. Sethi. Mr. Sethi mixed up the sexes and broke the news to dad that he had become father of a baby girl! Everyone in office congregated and congratulated my father on having a girl. Plentiful anecdotal evidence was quoted to suggest how having a demure charming baby girl is so much better than having a rowdy troublesome baby boy. Dad soaked in all the compliments and well-meaning parenting wisdom with gratitude. It was only a couple of days later that he came to know that he had had a boy and not a girl. When the news spread in office, a second round of congratulatory celebrations broke out and the same colleagues came and twisted their stories around to prove how a baby boy might be a nuisance, but is so much more fun to have than a baby girl!

As the day drew to a close, there were more calls, SMSes, emails and orkut scraps than I could handle. It's been a nice day :)

Delhi-6 - Watch it!

I watched Delhi-6 yesterday and liked it very much. It is a nicely made intelligent film with lots of thought provoking content. The movie’s story is set in the Old Delhi area near Chandini Chowk, which carries the pin code 110006 and is hence called Delhi-6. It provides an enticing glimpse into the joys and tensions of living in the Old Delhi neighborhood that is home to middleclass Muslim and Hindu families, who have lived there for generations. The locality is like a microcosm of India, a proud place that chooses to overlook the shortcomings of the present by living in the grandeur of the past. This leaves it with a stagnated moral core that threatens to disintegrate under the slightest hint of strain. The director explores this theme throughout the film without getting preachy.
The movie’s high point is its highly competent ensemble cast lead by veterans like Om Puri, Rishi Kapoor and Waheeda Rahman. The younger lot including Abhishek Bacchan, Sonam Kapoor, Pawan Malhotra and Atul Kulkarni do a very decent job indeed. For me, the biggest draw was the film’s music by Rahman. I went to the theater to specifically see the song “Masakkali” rendered on the big screen. The maestro has belted out yet another outstanding track that elevates the movie to a different level altogether. The best thing about his music is that it has an organic link with the setting of the story. Delhi 6’s sound has an underlying edgy current reflecting the changing aspirations of the people of an old neighborhood. “Genda Phool” is the best example where Rahman conjures an old-world sound reminiscent of the 60’s and then garnishes it with a dose of electronic sound that provides a youthful tempo for young Roshan and his old granny to groove on. Another treat to watch out for is the interesting use of the 'Ram Leela' stage performance to carry the narrative forward. If nothing else, it is a chance to see a damn neat Ram Leela production on the big screen!
Now coming to the specifics of the story, the movie begins with Roshan agreeing to take his grand mom back to India where she yearns to spend her last few living years. When the grandmother and grandson duo land in Delhi, the first scenes that great them are that of news channels flashing the story about a “Monkey-Man” who has terrorized the residents of Old Delhi. Roshan goes through the typical bewilderment that foreigners go through when they are introduced to the sights and sounds of a teeming Indian metropolis. One can’t help smiling when the bemused Roshan stares with disbelief when he’s woken up by the snort of tangawala’s horse as he sits at the window of a swanky car. At first, our protagonist is overwhelmed by the overflowing warmth that the Old Delhi neighborhood doles out to make him feel at home. As the film progresses, he starts spotting the quirks and fissures that the social fabric carries. This is where the filmmaker’s eye for detail is praiseworthy. He spins R K Narayan type character sketches like that of feuding brothers living in the same house with a mud wall partition; the Mohammedan jalebiwala who is an ardent devotee of Hanuman; the mean moneylender Lalaji with the young bride he bought for Rs. 25,000; the slimy local photographer who owes everybody money and finally elopes with the Lala’s wife. These and the many more vignettes that are brought to life during the first half, make for a sumptuous a la carte that keeps you happily engaged till the serious bit unfolds in the second half.
In the second half the politics of communalizations comes takes centerstage when the “Monkey-Man” menace takes a nasty turn and a local god man suggests that the “Monkey-Man” must be a Muslim, since attacks always happen in Hindu areas. The local Hindu party’s politician seizes the opportunity and promises to teach the Muslim community a lesson. All hell breaks loose and the cloak of bonhomie that enveloped the neighbourhood tears apart bringing to the fore the deep-rooted distrust between the Hindu and Muslim communities. Friendly neighbors turn to deadly foes overnight as trishuls and sickles are brandished in the air. How Roshan tries to defuse the situation forms the climax that pans out nicely, tying together all the loose ends.

The lone weak link of the movie is the purported romance between Roshan and Sonam Kapoor’s character, Bittu. Bittu’s characterization as the quintessential middle class girl trying to break free from her preordained future as a subservient wife to a groom chosen by her parents by participating in the “Indian Idol” contest is spot on. But, what fails to fly is the sudden love that Roshan and Bittu feel for each other towards the end of the movie. However, to me, this is a minor flaw that one can live with. Obviously, the director and scriptwriter must’ve been too preoccupied with the larger theme of the story and missed out fleshing this part in greater detail. Given the impact they’ve made with the rest of the film, I'm fine with letting this slip pass. All in all, as one critic said, this movie is a good follow up to Rang De Basanti. Rakesh Omprakash Mehra has made another movie that I wouldn’t mind seeing a couple of times. Cheers.

Subtext: It is quite strange. Two groups of friends that I spoke to after watching Delhi-6, absolutely hated the movie. There seems to be a pattern to this. This group of friends also disliked another favourite of mine, 'Jane Tu Ya Jane Na', but loved 'Ghajini', which I didn't quite like. It appears that there is a section of movie goers that likes linear story telling of the kind that happens in movies like Ghajini where there is a clearly dilineated hero and villian and everyone in between. There are no shades of grey, just pure black and white. You don't have to spend too much time pondering about subtexts, the story is plain and clear, just sit back and enjoy the scenery. The other type of movie goer likes non-linear narratives that meander around collecting small subplots to tie them together in a larger framework that unravels as you sit back and view the movie in its entirety. These are the sort of movies that keep popping insights in your head days, weeks and months after you've watched them. The sort that I like writing about.

Horsing around...

22-Jan-2008: I've gotten a bit loony. I've joined horse riding classes....totally insane....I seem to have taken Randy Pausch's message about fulfilling childhood dreams a wee bit too seriously...

1-Feb-2008: Though, I'd signed up for these classes 2-3 weeks ago, I finally mustered the will and courage to go for my first lesson today. 'Will' - because these classes happen early in the morning, at 6 am to be precise; 'courage' - not because I'm afraid of horses, but because attending horse riding classes sounds a bit too loony for my liking.

The first lesson went off very well. At the end of my 45 mins with the 10 foot tall, once majestic, steed - "Hercules", I had learnt how to mount and dismount with confidence and had developed a liking for the whole horse riding business. It seems to have been a good decision to sign-up after all!

Two other blokes who'd signed up through BMC, turned up for their first class today. The instructor - the able and friendly - "Ms. Pushpa", made a mention about we 3 beginners forming a group and going on a safari to Nandi Hills after 10 classes. Though it sounded very interesting, I chose to reserve the topic for discussion during the next class.

Pushpa introduced me to this middle-aged man who was half way through the course and had taken 6 lessons so far. I was pretty impressed to see him riding in a mild gallop all by himself! Gives me a lot to look forward to.

For a city-bred person like me, who has not handled animals before, the act of riding and controlling a horse poses a mindset challenge. The very idea of being in such close proximity to a living being that is larger and stronger than you is a bit unsettling. And then, the "animal rights" issue plays at the back of your mind; you keep thinking - am I hurting the horse by pulling on the reins that are attached to the bit biting into it's mouth? Why is the horse plodding around so uninspiredly? Is it bored?

As I was being taken on a walk around the grounds, I began pondering on the etymological contribution of terms used in horse-riding like "bridle", "saddle", "stirrup", etc. I bet, some linguist somewhere, must've already written a book on the immense contribution of horse-riding to the English language! Cheers.

3, 4-Feb-2008: At the end of the third session, the last thing on my mind is the pleasantries of the English language. My backside hurts, my inner thigh hurts, a lot of known and unknown muscles all along my legs and lower back sting. Riding is no easy business, trust me on that.

Whenever you learn a new sport/activity/technique you run into a stonewall which seems impenetrable. You are flummoxed and frustrated because no matter what you do, nothing seems to help. I've stepped into this frustrating zone of horse riding. I am trying to master this technique called posting the trot.

When the horse is on a trot (a bit faster than a walk, but slower than a run or a gallop), it's back movement generates a vigorous and hurtful bounce on the saddle. To counter this, the rider has to cultivate a rising and sitting routine that is in synch with the horse's rythm. Boy, is it painful. You have to raise yourself by pressing your toe-area into the stirrup. Plus, you have to stand straight to avoid damage to your and the horse's spine. While doing all this your legs an shoulders have to be super relaxed, else the horse will go stiff. And whilst you are experimenting with all this, your backside gets smashed against the firm saddle, with every bounce that the horse makes. Riding, aint easy my friend, trust me.

7, 8-Feb-2008: I took a two day break after the last two classes. The break helped to relax my stiff back and heal all the aches and niggles I had picked up. I did a fair bit of reading on the internet about the basics of horse riding. There are lots of forums and websites that discuss the sport in great detail. Some of the tips I picked up from the web were gems, for example:
1.While posting the trot, don't start the standing-up-sitting-down routing straight away. Sit through the first few steps and begin posting when you get thrown up by the impact of the horse's trot.
2. Once you've started posting, stand quickly and sit slowly. Time your post in such a way that you use the horse's impact to propel your rise.
3. It helps to keep a count of "one-two" and rise and fall appropriately.

I tried these during my fourth and fifth classes yesterday and today. These tips work. They make it easier to pick the horse's rythm. As a consequence, the damage to my backside and spine were lesser this time. I have a slightly stiff back, but it's much better than the last time.

I've slowly started enjoying the sport. There are lot of intricacies and nuances that are involved that makes it interesting. Plus, as you get more comfortable with riding, you start connecting with the horse. You learn to pick and appreciate its eccentrities. For instance, today's horse, Suryamukhi, was very responsive to my cues. It picked my rythm and slowed down its trot to match my pace. Usually, other horses on the lunging line listen only to the trainer, they tend to follow their own rythm and don't respond to the rider.

Another nice thing about the horse riding experience is the fact that it is an avenue to meet interesting people. Invariably, horse riders are folks with a zest for life, the type that do their own thing....intéressant...

March 15, 2009: Nine horse riding classes later, my back still hurts ;), but I'm enjoying the class more than ever before. I'm now confident of handling a horse on my own. I've mastered the technique for posting the trot and have no back trouble when I do that. The reason for my latest back ache is my incorrect seating position while I tried sitting the canter for the first time yesterday. The canter is a gait that's faster than the trot but slower than a gallop. The canter is a three step gait, where the horse's hooves make contact with the ground in three sets and the speed of the horse is in the range of 15-20 km/hr. I made the error of sitting at the rear of the saddle and trying to hold on to dear life as 'Rohit' my obdurate horse cantered at will. I suspect the saddle position itself was a bit faulty, because I kept falling forward during the trot itself. Anyways, after the ride as I chatted up with Salim, he said that during the cantrer one should sit at the center of the saddle, so that you are on the middle portion of the horse's back and not the rear end, this way you'll be able to slide on the saddle with forward and backward pelvice moments as the horse canters. I'll have to try that during the next class. In the same manner that my entire back had gone sore when I trotted for the first time, I'm in pretty serious discomfort after cantering for the first time, I'm sure things would be fine after a few more classes :)