Fresh Engineering Degree Graduates - Most Will Be Condemned To A Life of Misery!

Engineering Degree Holders Everywhere, But Very Few Are Capable And Employable!

Imagine being marooned on a boat at sea without fresh water, there is ‘water, water everywhere but not a drop to drink’.  Similarly, the mushrooming of ‘education industry’ is turning out lot of degree holders but very few are employable.

Colleges offering professional degrees have grown like weeds. The weeds  grow quickly and  add to the greenery.  They look good.   However, just like weeds hinder the growth of crops, many of these private professional colleges have prevented a solid educational foundation for the youth of Andhra Pradesh.

Last year, about 1.8 lakh engineering and MCA students completed their education.  Not even a small fraction of them have got jobs. The job market is so disappointing that many students just stopped looking for jobs.  Fresh graduates no longer enroll for computer courses to enable them to get jobs. Computer training institutes are not seeing enough people enroll.

When someone does an engineering or MCA it is a one-way route.  You cannot really get out of that field into another field.  Honestly, how many pharmaceutical companies will hire a BTech Civil Engineer as pharma salesperson.  Or how many retail companies will hire BE (Computers) as Customer Service officer.  However, if the same person had done a BA or BCom they would not have an issue with either a pharma sales job or the retail customer service job.  A couple of years later, they can always do an MBA or MCA and change their careers and be a productive and responsible members of the society.

Over the past decade, with the increase of engineering seats from 4,000 to about 2 lakhs - every Yelliah, Mallama and Ramulu can get a seat in Engineering. The student and family feels great - like they did for those who graduated last year. I am doing Engineering or my son will be an Engineer.  A parent might have thought – my son’s life will be ‘settled’.  Well that was till last year!

The quality of education and the talent levels of those admitted are so low for 98% of all these engineering students that they may be condemned to a life of misery.  Their career prospects or chance of a well paying professional job no better than someone who does an Unani or Ayurveda Medicine degree from some unrecognized institute.

The Satyam saga may ultimately affect a few thousands familites– that too only temporarily!  However, the epedemic growth of higher education colleges has destroyed or will destroy the future of lakhs of lower and middle-income families.  There are so many of them who have taken loans, sold possessions and made many sacrifices in the hope that their kids will be well settled.  

Today, their kids employability is a question mark.  However, in order to get those degrees they borrowed lakhs of rupees.  The chance of the kids repaying the loans with a well paying job are not very promising. Not for this year, but for a long time into the future.  

With lakhs of low quality students being admitted into professional courses – there is a possibility that the current education policy has destroyed the future of an entire generation who may have been better of doing ITI / Polytechnic diplomas or a regular BA, BSc, BCom degree.  Such degrees might have helped them find a honest and stable technician or service jobs that would have been better matched to their abilities.

The only good thing about the current recession is that it may compell many parents to really think hard before admitting their ‘not so smart kid’ into a low quality college offering professional degree. A degree from such a college has little value in the job market.  Even NASSCOM publicly admits that only 25% of the engineering graduates are employable! That was a few years ago, before the vast increase in new professional engineering colleges.

State of Real Estate in Hyderabad - January 2009

Deccan Chronicle is the English paper of Hyderabad. If you want to get results from advertising in Hyderabad newspaper, then you basically put up Ad in Deccan Chronicle. Their advertising rates are higher but they work.  That is how it works. Deccan Chronicle (DC) has a special section on Real Estate that comes out every Friday that is called DC Estates

Earlier, big real estate companies used to put half page ads in DC Estates.  The smaller ones either put in mid sized ads or sometimes very small ads.  Last year, you would find anywhere between 20-40 advertisements in each weekly edition.

For the past several weeks, the DC Estates has reducted to half its previous size. From 4 pages earlier, it is now down to 2 pages. 

That has been happening for roughly two months.  But on Friday, 16 January 2009 not one single ad appeared in the entire DC Estates section.  Essentially, not even one builder in Greater Hyderabad thought it worthwhile to put even a small ad.

A tell tale sign of the status of the real estate market and the interest being shown by real estate buyers!

Only thing Big about Big B is his ego and constant craving for attention!

Ego helps some champions to achieve more, to set higher standards - they do not settle for anything less than excellence.  However, in case of Big B – it is a constant craving for privileges, entitlements and attention.  And a nasty habit of belittling others achievements.

Big B declined Bill Clinton’s invitation to join the Clinton Global Initiative(CGI). No issue with that, he could have said a "No, thank you" privately. But not Mr. Big B who derided the invitation publicly and said why should “I sing and dance…”  or  “travel to a foreign land to lend cause to a foreign initiative, patronized and guided by a foreigner, for his benefit.” 

For God’s sake the Clinton Global Initiative does projects in 150 countries. A Foreign company called Dow Chemicals has committed to Rs.140 crores to help create community water systems in India to help provide safe drinking water for 1.1 crore people in rural India. The Clinton Global Initiative is about creating projects of your own choosings in your own neighborhood to suit your strengths and capabilities.

Well what can you expect from Big B. Maybe because it is required to make Commitments to Action in the Clinton Global Initiative– concrete, measurable steps towards improving lives. Otherwise, they are not invited again!  Well that is maybe what scared our Big B.  He could not just do some ‘dancing and singing’ and get away. He needed to do something meaningful.  If Big B really cared for Mumbai and terrorism -  he could have made a commitment to do something about it and make an impact. Instead he made a very careless comment and sought to indulge the auto / taxi wallahs of Lucknow and many star struck housewives looking for ways to idle away their time.

Recently, he said something stupid about ‘Slumdog millionaire’ a couple of days after it got the Golden Globe Awards.

Big B cannot think beyond his village pond, even if we put him in the Indian ocean.  I know ten times more desi fans of Jackie Chan in Hyderabad, than all the ‘white’ fans of Big B in even a large city like New York.  

I have seen people say some Indian actresses look ‘Hot’. But never met anyone who said he watches Indian films.  I have seen movie theatres flocked with thousands of Indians for a hit Indian movie. But never saw one white family or a even a group of ‘two’ white people (on their own – not tagging along with an Indian group) come to watch a popular Bollywood movies.

They have mentioned seeing a Indian movie song and surprised by the colors of the dresses or the raunchyness / craziness of the dances. But never seen anyone who said, I like Indian movies and cannot live without seeing one every other month. Or have any white person ask me ”Hey, any good Indian movies you would recommend?”

The situation is entire different with Indian food. Every part of USA has Indian restaurants.  And many white people geniunely relish Indian food. They are clear what they want to order and why they like a ‘Chicken Tikka masala’ or ‘Naan’. In a business meeting, I once came across someone who was crazy about Muligatawny soup and was surprised that I did not know what it was though I had lived in South India. Turned out later that the ‘Muligatawny soup’ was a fancy name for ‘Sambar’ (yes, of Idli Sambar fame!!)

So wake up Mr. Big B.  Just understand that appealing to every low class Bihari, UP, Rajasthani and Haryanvi is one thing. It is another thing to appeal to an international audience.  I know your ego hurts after all the ego massaging you get from million and millions of low IQ fans of yours.  I don’t think people who are more refined and more intelligent will be as blatant with their adulation for you.

Yes, you are the North Indian Champion.  Not even a National Champion. Not sure how many villagers in West Bengal,  Andhra Pradesh or Tamil Nadu will know you.  And be humble and realize that there are some Olympic champions. 

Maybe, it is the money that Anil Ambani’s ADA Group gives you that motivates you to keep creating ‘noises’ and ‘unnecessary controversy’ to promote the ‘Big Adda’ blog and brand. Grow up, face the reality and stop indulging your ego! 

Authentic Hyderabadi Biryani

Authentic Hyderabadi Biryani! Looking for some but confused! You are not alone. Many restaurants both in Hyderabad and outside (within India and abroad) claim to serve authentic Hyderabadi Biryani. However, just naming the dish or claiming it to be the original recipe does not make it authentic.

You can determine if a restaurant is serving authentic Hyderabadi Biryani by checking how it is served, finding how it is cooked and by the characteristics of the restaurant.

Here is what you should get with an authentic Biryani. An authentic Hyderabadi biryani comes with Mirchi ka Saalan (Green Chili in brown gravy), dahi chutney (curd & onions) and onion salad with some lime pieces. If any restaurant does not provide you all of these at no additional cost - you can just walk away. These are absolutely the basic things that make the 'Biryani' meal. If any one item is missing it is like serving a Pizza without the dough.

Secondly, the only authentic Biryani is the Dum ka Biryani . It means the Rice and the meat are cooked together in steam in a large conical vessel called a deksha. The lid is sealed with dough to prevent the steam from coming out and the food is slowly cooked typically on charcoal. This cooking method is what gives it the distinctive flavor and the taste. This way of cooking in slow steam is difficult. A chef cannot really examine the biryani while it is cooking. Once they remove it from the flame, and the meat is overcooked or undercooked - the chef cannot really make adjustments.

Many restaurants serving non-authentic biryani serve what is called pukki biryani - which means the meat and rice are cooked separately. Then, they mix them both at the end to create a biryani. This is like mixing curry and rice.

Finally, remember that the Biryani was originally designed to serve quick meals to troops during war. So any good Biryani restaurant will typically serve a large number of guests. The good biryani restaurants in Hyderabad serve tens of thousands of meals a day.

The above should hopefully help you figure out if a restaurant is serving Authentic Hyderabadi Biryani!

Sankranthi, Fighter Kites & Hyderabad

Sankranthi is probably the most important festival in coastal andhra and Rayalseema.  Though not a big festival for people around Telangana where Dassera is the most important festival.  While for people from the North Indian business communities Diwali is the most important  festival.  

However, Sankranthi for old time hyderabadi's is fun time. However,  People get on  the 'terrace' or roof the house to fly the fighter kites. There is drama - music, large groups accumulate, their is shouting / war cries of "kaateh" whenever a kite is cut.  People say the same 'kaateh' in their own personal way and  in their own voices - each putting an emphasis on a different syllable and choosing to either say it in a long drawn out way or abruptly.  The pitch is always high though! 

I would not say the same environment stands true for newer settlements in Hyderabad. However, all the old settlements and neighboorhoods -  both rich and poor actively engage in kite flying.  This cuts across religions - Hindu, Muslim, Christian & Jains.  The only thing that matters is are you interested in this "sport" or not.

A few enterprising groups set up blaring music and some even install public address systems.  From experts to amateurs everyone participates.  For most grown-ups this is the only time they fly kites in the year. For kids - they are more likely to fly kites for several weeks before  sankranthi and a few weeks after.

Over the years, the growth of high rises and other developments have caused much changes to in the kite fighting area.  A couple of decades back most people would fly kites from a open ground or from the street in front. A small number who lived in houses with a proper terrace would fly from there. Back then, the houses were ground floor or maybe 1st floor. There used to a lot of obstructions, trees & electric poles.  

Now with the proliferation of flats - the trees and electric poles has ceased to be a hindrance.  God help those who live in a 2 floor building with a 5 floor apartment in front.  They just cannot do much kite fighting from their building. However, with people flying from different heights - it does make kite fighting more complicated. There are so many angles of the kite line.  Earlier everyone was flying from the same level so it was far more simple 

With several innovations,  ease of travel and courier service is changing the dimensions of  kite fighting.   Over a decade back, the "manja" (pounded glass coated thread) from Bareilly first started being sold in Hyderabad.  This manja would have no knots in the entire manja charak (spools), dark in color (so kite line is not seen easily) and was  inexpensive so kite flyers started using a lot more manja. More recently, any development in one area of India is now copied or distributed to another area.  One friend gets his manja from Rajkot thanks to his aunt and claims it is far superior to the Hyderabad manja.

What I am driving it is that these innovations or changes forced fighter kite flyers to alter their techniques and methods. More recently, the introduction of nylon thread rather than cotton thread for making manja forced people to change their technique and methods. Being both stronger and also having different properties it does give advantages to a person flying fighter kites with Nylon Manja. 

Thousands of people are employed in making these kites in Old city, who work throughout the year to have the kites ready for this seasonal festival. I am not sure the traditional Manja makers in Hyderabad have changed to adapt to the new developments. 

As people seek positions of advantage in order win more kite fights. I am pretty sure today's developments are not the end of innovations. As more kinds of new thread materials are adapted they will find a way into the world of fighter kites.  So as we end today, after an entire day of loud and continous shouts of "Kaateh" filling the ears - we bid adieu to the Sankranthi 2009.  We may be a bit tired, have a dark tan, have many cuts on the fingers but hopefully many of you are content with the scorecard or the fun you had this Sankranthi.

Hyderabad - Little Known History

Today, Hyderabad is the largest city in Andhra Pradesh (A.P.) State and its capital city.  The prior statement does not clearly show the difference in development between Hyderabad and other cities in AP like Vishakapatnam, Vijaywada, Guntur, Kurnool, Tirupathi, Warangal and Karimnagar.   On many parameters Hyderabad is way ahead of  other cities from A.P.  on parameters like population, infrastructure, public services, cosmopolitan outlook, education, presence of institutions of repute and quality of living.

If ones goes out to any other city in A.P. - the outlook is NOT cosmopolitan.  Barring Vishakapatnam, the others are still rustic agricultural towns.

One of the reasons for the cosmpolitan outlook of Hyderabad could be that the Nizam's territory included populations having different mother tongues - the erstwhile Hyderabad state now covers present day Andhra Pradesh (mostly Telangana area),  parts of  present day Karnataka and a significant part of present day Maharashtra (upto Aurangabad).  Since the Nizam was originally a Governor of the Moghuls (based out of Delhi), there was lot of North Indian influence on Hyderabad.  Being the Capital of erswhile Hyderabad State, it was the nerve center and had visitors from all part of the  Hyderabad State.  It would also have regular visitors from the sorrounding kingdoms.  This history created a foundation for a cosmopolitan outlook as seen in Hyderabad today.  

Many old timers who went to good schools (mostly used to be Missionary or Convent schools) had an almost equal number of Hindu, Muslim and Christian classmates.  This forced the brighest people from Hyderabad to get to know other cultures early in their lives, thereby cultivating a cosmopolitan culture in Hyderabad.

This is the first post on this topic. There will be many more posts on this topic in the coming weeks and months that will hopefully help you understand the culture of Hyderabad.

Realty is a fragmented market. Local factors are the biggest influence.

In a previous post, I had mentioned that "big name" realty companies are fringe players.  

Realty is a fragmented market.  That means there are several thousands of companies that serve the demand in the industry.  No player has a market share that is considered significant as compared to the overall size of the market.  This is how the real estate market was in India and will remain as such.  So stop chasing the "big name" realty firms – they are good with propaganda and want to make you believe these dozen companies construct every single home or every single good home in India.  There could be nothing farther than the truth! 

Realty is also a local market. The price of housing and the demand supply are mostly determined at a local level.  Though macro factors affect the pricing, it doesn't affect each real estate market uniformly.  The state of the industry supporting the employment of the local population has a big impact on the pricing on that city or neighborhood.  If there are very few developments in a neighborhood, then due to the supply bottlenecks, the pricing of the existing homes in that neighborhood may be high.  Similarly, an oversupply of homes in a neighborhood causes a price reduction (as seen today in Nizampet opp. JNTU Kukatpally).

The "big name" realty firms use their almost total control of media and public relationships to create negative impressions about small firms – quality of construction is not good, they will not be able to survive, quality of material is suspect etc.  However, the truth is that housing will be fragmented.  There will be good, average and bad realty firms.  This will be irrespective of the size of the firm.

A home is a big ticket purchase – you need to assess a property properly and make the right choices.  You are not buying a cup of tea for Rs.5/- that you can shrug off and walk away in case you don’t like it how it tastes.  You will have to live in that home for a long time and possibly an entire lifetime.  A good choice will mostly likely take a lot of hardwork, patience and analysis.  So be prepared for it!  Having the right frame of mind and expectation wins half the battle!

Choosing a Company Accountant

As outlined beautifully in the book ‘Rich Dad Poor Dad’, a good businessman needs good advisors. One of them will be a good, professionally certified accountant. When someone is starting a business, you will most likely not need a full time accountant. Also not sure if a good accountant, well versed in the skills and practices would join a new business. So most likely you will lean on finding a professional accountant. Most of them have an advanced professional degree.

A degree, however, does not mean that person is competent. Accounting, first and foremost, needs an attitude. If the person is not good with organizing systems definition and compliance, he, in my opinion, cannot be a good accountant. The person should also endeavor to do accounts to ensure the fall benefits from tax and statutory authorities that are available within law.

An accountant for a startup can play a key role in ensuring compliance with financial laws. In this role, he can advise the client on implications. By ensuring proper filing of forms, adequate record keeping and storing of transactions, they play a key role in helping the owners focus on the business, i.e. find and keep customers.

Well kept records and financials help the business person from getting overly involved in the highly time consuming accounting process. Also, various statutory organizations require reports, data and impose submission of forms. A good accountant can help take this load of the business man. This may look trivial, but bear in mind that the first year or two in business means a lot of work and sleep deprivation. Studies have shown that the setup years of a new business is equal to having new born child in the family.

By now you know how accountants can help take the routine but important activities of your plate. However, finding a good accountant is not easy. The following will help you -

• They should be competent in tax and accounting laws.
• Most accounts work involves repetitive tasks. They should know how to create systems and processes so that work can happen accurately and quickly.
• They should be very detailed oriented. That is why they are called bean counters.
• Beware of accountants who are very salesy. In general it is very difficult to be both salesy and detailed oriented.
• They should know the implications of treating transactions in a certain way. A good accountant will help save taxes by recording transactions properly (within laws) to get your business the benefits that are due to you.
• They should, above all, know what matters are strictly enforced by statutory organizations and authorities and make sure you follow them.

Most good accountants have modest but well maintained offices. They are not shabby and they are not fancy. They have staff that is disciplined and follow procedures. Good accountants are well organized and will understand the value of your time and handle things quickly and efficiently.

I was motivated to write this note after seeing a very unpleasant experience faced by a close friend while dealing with an unprofessional chartered accountant in India. That experience motivated me to write this article. Hope you find this useful and you have good luck in finding an accountant who lets you focus on building your business.

Roti, Kapda, Makaan and mobile phone!

They are called cell phones in the US and mobiles in India.  India is the largest growth market for mobile phones adding about 60 lakh  mobile phones every month. There are around 26 crore landline and mobile phones.   India expects to reach 50 crore subscribers by the end of 2010. 

Your maid servant has it, your painter, plumber, electrician and pretty much everyone has a cell phone. Its almost like any adult who wears footwear has a  mobile phone.

The fact that people across all walks have it makes it easy to get things done.  You need to find directions, go  to a landmark close to the destination and call the person.   Your contact will most likely give your a live updates and commentary as you find the location.

It has a nuisance value too. Since every one has it and the incoming call is free.  You have no disincentive to pick up the call.  Unlike in the US where you will be charged for picking up a call from a unknown number!  Thus, telemarketers feel free to call you. It is very easy for the cell phone to become a nuisance.

In the US, many people buy a cell phone for emergencies. They hardly ever use the phone and look for the cheapest plan with a small number of minutes included in the plan..  I have seen many people buy a cell phone, when their car becomes old and unreliable.  A tool to call the towing company or a friend when the vehicle breaks down.

In India it is a status symbol. People buy expensive cell phones with organizers, email capable and many more features. However, a vast majority hardly use the productivity related tools. They  use the media player and the camera. People generally are very savvy with fancy ringtones and other emotionally appealing features.

It it amazing how the same tool can be used for one functional whereas  in another country a totally different use is put for the same device.  Isn't that interesting?

Real Estate Hyderabad India

Real Estate is such a hapenning area and especially since so much of talk in hyderabad and for NRI's from Hyderabad happens on this topic there is a substantial section devoted to posts on this topic.  When the market was hot it made many millionaires and also it made a billionaire a pauper i.e. Satyam's Raju.  You can like it or hate it but you cannot ignore real estate.  Atleast while talking about Hyderabad.

The selection of posts on the Real Estate are listed below - enjoy...

Must View:

• No Meaningful Correction in Hyderabad Real Estate Prices
  
• Hyderabad Real Estate Bubble Busts

• The Coming Bust in the Hyderabad Real Estate Bubble
  

Other Blog Posts on Real Estate:

• LIC Housing Finance Property Show - January '09
  
• Realty is a fragmented market. Local factors are the biggest influence
  

• Builders Selling Small Number of Super Luxury Apartments are Fringe Players Nationally!
• Tips for renting commercial real estate

LIC Housing Finance Property Show - January '09

LIC Housing Finance Property Show was conducted on Jan 3rd & 4th  at Institute of Engineers Khairtabad.  This exhibition was a waste of time since the prices were not adjusted to the market conditions. There were hardly any properties on offer in localities where people are looking for homes. 

Secondly, with the tightening of the credit norms by banks - it is difficult to get larger loans like earlier.   However, real estate companies have hardly any decent property options  to offer for the loan amount + savings that most people can arrange.   Thus, there is a big imbalance between buyers and sellers.

The good thing was unlike other shows, there was more variety and smaller firms were in good presence. Many of the big companies other than Aliens were conspicious by their absence.  There was a good crowd, the parking lot was congested and lot of middle class families visited the show.

There were several developers from Hafizpet and Nizampet area.   My contacts in that area tell me that there is hardly 5% booking in that area and builders are under huge strain.

Some developments were quoting  Rs.2,500 to Rs.3,200 about 25 kms away from Khairtabad. The prices were off course negotiable.  Even if  the proposed Hyderabad Metro was operational today as planned - the last stop for these developments would have been tens of kilometers away. In my opinion, these properties are not city locations though they may fall under GHMC limits. It will be very difficult and inconvenient to commute to a job in the city from these developments.

Within the city, one apartment in Srinagar colony was being quoted at 5,000/- per sft negotiable. The size available was about 2600 sft for a flat. At that price the cost of the flat was coming to around 1.3 crore. Based on some rough calculations, this person or family should have a income of Rs.30 lakhs per year and put down some 25 lakhs down payment.  You can guess how many can really afford this apartment.  

With the builders still quoting exhorbitant rates,  only a small number of  purchase transactions are possible in Hyderabad real estate market today.  Since most real estate companies are looking to get the maximum value from their properties, it appears to me that most of these real estate companies will be exiting this industry and "venturing" into other areas. If someone was really into this business for the long-term they would plan and operate in a different manner.

Road conditions deteriorate badly in Hyderabad

Want to develop a spondilitis condition?

Then drive through this stretch - JNTU to Chandanagar on the Mumbai National Highway.  It is not a road, it is a test track build for thoroughly evaluating the Land Rover All terrain and Multi Purpose vehicles before a crazy African Jungle expedition. 

Overall, the quality of roads in Hyderabad has deteriorated very badly.  In my opinion, from around early 90’s to a few years back Hyderabad had the best roads for a city in India.  Now it is going back to the horrible 80’s. Though I was a small kid I could not help but notice that  every time Indira Gandhi or Rajiv Gandhi visited Hyderabad, the roads they traveled on would be recarpeted (even if it was the third time that year).  While the rest of the roads continued to be neglected and badly potholed.  

In the last 3-4 months, some roads are being re-laid (maybe because the elections are getting closer). However, this is very adhoc and not need based.  Roads in Hyderabad seem to be classified into 2 kinds - VIP roads for the 'masters' and I guess the rest are for the ‘slaves’.  The slaves have to travel on the badly potholed roads for committing the crime of paying taxes to fill in the coffers of the government run by the VIPs. 

This can be best seen in Panjagutta.  The road from Begumpet to Road No. 1 and 3 Banjara Hills is well carpetted.  The Raj Bhavan road is also very good. However, Panjagutta to Saradhi Studios is badly potholed. I have been watching the steady deterioration of this road for the past 2 years.

The “prized jewel”  (worst patch of road) of GHMC is a small stretch of road underneath the flyover at Panjagutta X Roads.  Since the Kukatpally-  Dilsuknagar is the lifeline road of the city through which about 10 lakh people travel everyday.  There must be some very “intelligent” reason known only to the city administrators for not properly maintaining this road (a full  six months after the flyover is completed). 

If this trend continues it will not be surprise if it  takes 4 hours to travel from Panjagutta to Shamshabad airport.  As I painfully went through 2 kms of obstacle race on the JNTU to Chandanagar road,  I could not help but thinking. GHMC is not able to maintain the current roads in the city.   How will they  manage once the city fully expands into Greater Hyderabad! Think about that!