Thursday, December 03, 2009


Kidzart Announces International Expansion to Middle East and Asia

KidzArt, a leading children's art education franchise company, announced its recent expansion into seven key international markets in an effort to introduce their US-based children's education brand beyond the States. International franchising rights were first granted in Shanghai, China in January and most recently to a new franchisor in Kuwait. KidzArt is the first US children's art education brand to develop it's franchising in multiple countries beyond the States.

Each international operation owns franchising rights to operate and market branded KidzArt locations. In addition to China, developers in Singapore, South Korea and India have also signed on in Asia. Other international openings in 2008 include Qatar, Kuwait and the United Arab Emirates.
Our diversification into other economically sound markets is a significant part of our growth and competitive strategy," says Shell Herman, CEO of KidzArt. "These new relationships are allowing us to build a global brand. The Middle East's growing economy make it an ideal place to introduce our curriculum and philosophy which focuses on igniting kids' imaginations. We're also pleased to serve the Asian markets by catering to a new generation of parents who are looking to expand their children's education beyond core subjects."

The following are a few highlights of KidzArt's international development:
-Drawing on an increase in demand for children's creative educational services in Asia, Jacky Tan and Lorne Barnes have purchased exclusive rights to open a minimum of 10 KidzArt franchisees in China. Their second location is currently in development.
-Looking to diversify her business ownerships and recognizing that Singapore's children would embrace the KidzArt philosophy, Ms. Gayatri Golpadas purchased exclusive rights to open one or two KidzArt locations.
- Karl Oh, owner of South Korea's largest manufacturer of children's furniture, saw the strong need for kids' enrichment services. He has opened a multi-faceted enrichment center in Seoul where kids can learn English and art.

KidzArt has plans for additional expansion outside the U.S. for 2009. According to Herman, "We are currently in serious discussions with at least four more countries slated to come on board in the first quarter of 2009 including Europe. We are thrilled with the way the international market has embraced our concept and it is an exciting time for us to expand our cultural scope. Our domestic franchisees will benefit in many ways as our multi-cultural curriculum continues to develop to meet the needs of the global market."

One of the KidzArt area developers is Dishita Shah of Innovative Concepts.


Fitch affirms Jubilant FoodWorks' Bank loan ratings

Dec 1 - Fitch Ratings has today affirmed Jubilant FoodWorks Limited's (JFL, earlier Dominos Pizza India Limited (DPIL)) National Long-term rating of 'A-(ind)'. The Outlook is Stable. Simultaneously, the agency has affirmed the ratings on its bank loans as follows: - Term loans aggregating INR850m: 'A-(ind)'; and - Fund based working capital limits amounting to INR30m: 'A-(ind)'/'F2+(ind)'; The rating affirmation reflects JFL's established presence in India's organised pizza industry with the largest market share. JFL is Domino's Pizza Overseas Franchising's (DP Overseas) exclusive master franchisee in India since 1995. 

The ratings are underpinned by JFL's strong and expanding operational network across India, its track record of managing the pizza business, its efficient working capital management and its strong brand recall. The ratings are also supported by the stable demand for JFL's products and the continued growth in the food services industry. In September 2009, JFL renewed its master franchise from DP Overseas for the period till 2024. However, concerns continue to emerge from its reliance on a single source of revenue - the master franchise from DP Overseas, and increase in competition from other pizza players and quick service restaurants. JFL has an ambitious plan to expand its chain in the coming years, which exposes it to execution and cost overrun risks. Fitch also notes that JFL was a loss making enterprise until FY05, and the net accumulated losses at FYE09 were INR732.72m. JFL continued to grow in FY09 both in operational size as well as revenues. While the number of stores increased from 182 at FYE08 to 241 at FYE09, the revenues increased by 32.89% from INR2.1bn in FY08 to INR2.8bn in FY09. 


Same store sales grew by 5.98%; however, net income declined to INR73.03m in FY09 from INR85.5m a year earlier due to increased interest costs arising from debt funded capex. The company continued to maintain its operating margins (op. EBITDA/revenues) at around 12%, in line with the trend over the earlier three years. Significant improvement in financial leverage (Total adjusted debt/op. EBITDAR), and substantial improvement in profitability on a consistent basis, backed by significant same-store sales growth, will positively impact its ratings. However, a higher than anticipated debt-funded capex leading to deterioration of financial leverage to over 5x (measured by Total adjusted debt/op. EBITDAR), and inability to achieve growth in revenues as anticipated will negatively affect ratings. At FYE09, the company had a total balance sheet debt of INR824.45m.



Lilliput mulls franchise route to foray into emerging markets


Kidswear brand Lilliput is targeting emerging markets outside India which have an eye for affordable fashion, reports Business Line.

Lilliput Kidswear Franchise, which has 225 exclusive brand outlets in India, is also present overseas across 30 stores in West Asia, Gulf, Egypt and China. The company is now eyeing the markets of Vietnam, Tunisia and Greece, and is already in talks to set up exclusive stores in the “next six-seven months” in these countries through the franchise route, the report added. The Lilliput Franchise will expand globally, one of them few brands embarking on a global expansion.

“Currently, our overseas business (which is two years old) is on a learning curve. Overseas contribution to our sales is now small and major growth will continue to come from India… but there is growing potential in these emerging markets, which have a high demand for affordable brands with an international product portfolio,” quoted Sanjeev Narula, managing director, Lilliput Kidswear Franchise, which operates in the “affordable” category retailing apparel, shoes and accessories for children between 0 and 12 years, in the report.

The slowdown did see sales dipping a bit in India. However, kidswear unlike adults apparel is a “compulsive” buy, said Narula. “With children outgrowing clothes every six months and needing to change clothes at least two-three times a day, the category has huge growth potential. Even with the slowdown, parents could not cut down on kids' clothes,” Narula added. 



Wednesday, December 02, 2009


Indian retail market to reach $535 bn by 2013: Report


New Delhi, Nov 26 (IANS) India’s retail market is expected to reach $535 billion by 2013, says a report on fashion and lifestyle franchises released here Thursday. “With anticipated $30 billion fresh investment over the next five years, modern retail will show impressive compound annual growth rate of 40 percent,” said the Fashion and Lifestyle Franchise Report 2009-10.


“With this growth rate, the market is expected to reach $535 billion by 2013,” added the report compiled by Franchise India Holding Ltd, a franchise solutions provider. “The growth of organised retail will be driven by the franchise model in future,” said company president Gaurav Marya while releasing the report at the two-day Franchise India summit on retail trade that began here Thursday.


“In fact, that is the reason that many big companies going into retail mode are adopting it,” Marya said, adding that he expected business deals worth Rs.150 crore would be struck at the summit. About 250 firms including 30 foreign brands are participating. India’s franchise segment is growing at 38 percent annually with the market size, currently valued at $7.2 billion, expected to reach $20 billion by 2013, the report said.



Bhutan is more than Buddhism, Franchising is fast catching on, in this emerging country

What was started as a small one-man company seven years ago in Thimphu has now grown into a flourishing courier company. Tamu Courier not only delivers letters and parcels within the country, but also throughout the world. It is a franchise of Blue Dart, an international courier company in India, and international consignments are routed through it.

In July 2002, Raaj Gurung invested Nu 25,000, which he saved from his brief service in the corporate sector, and started a courier service and a telephone booth.
Initially, he started letter and parcel delivery service between Thimphu and Phuentsholing. The first year was a year of struggle so he could manage to make profit just enough to buy a motor bike. In the following years, he expanded his service to Paro, Samtse and Gomtu.

He employed a delivery boy to pickup and deliver parcels to and from various places like government offices, business houses, airports, hospitals and even made home deliveries. The delivery boys make rounds of different ministries to find out if they have any consignment to transport. To supplement income, the courier company distributed Kuensel (Bhutan's National English Daily) in Phuentsholing and Samtse which was later expanded to Paro and along Thimphu-Phuentsholing highway. Today, Tamu Courier distributes all Bhutanese newspapers in these places.

It also does door-to-door delivery of newspapers apart from making vegetable delivery on demand. Today, the company has 10 employees and four vehicles. “These services are in great demand,” said Raaj. “There are always people who want a package delivered to another place as soon as possible, and there was a need of courier services.” According to him, government post offices worked during office time and they had scheduled time for collection and delivery.

“A courier can often deliver or pick up the item at any time of the day or night, when it is needed,” he said, but added that competing with Bhutan Post and the already established DHL was a big challenge. Prompt service, safe handling, and competitive service charges enabled him to survive and make a mark in the courier business. A letter to any part of India reaches in three days, and the rate ranges from Nu 150 to Nu 500 which are lower than that of other courier companies’ in the country. Raaj’s manager, Suraj Rai, said technology had enabled tracking of consignment at any time of the day. The customers are informed through SMS regarding the delivery of consignments.


JIP earmarks Rs 200 crore to develop Chili’s Restaurant Franchise in India over five years

Starts operation of the first The Great Kabab Factory outlet in Mumbai

JIP Fashion and Restaurants Pvt Ltd, the Indian arm of Bahrain-based Jawad Business Group (JBG), plans to invest Rs 200 crore in India to develop the restaurant franchise Chili’s over the next five years. The company, which has franchise rights for the US-based restaurant brand Chili’s in South and West India plans to build a portfolio of 15 restaurants over the next five years. It presently has one restaurant located in Bengaluru and recently started operations in a 140 cover restaurant in Mumbai.

The company will adopt ‘multiple restaurants per city’ format to grow the brand. Currently, the primary focus is to launch the brand in Hyderabad and Pune and develop more outlets in Bengaluru and Mumbai. The restaurant in Hyderabad will be located at Inorbit Mall and is presently under construction, informed Rakesh Gadoo, Business Head - Restaurants, Jawad Business Group. Post establishment of the brand in the metro cities, it will consider locations in the Tier II and Tier III cities. “Mumbai itself can accommodate four to five Chili’s outlets. We will consider the demographics of each city before multiplying the brand,” Gadoo added. The company is scouting for opportunities in both high street and mall locations for the same, concentrating on office complexes and a sizeable residential catchment area around the outlets to provide them with good footfalls.


Pakistan PM, Gilani woos Germany, encourages Germany to export franchises


FRANKFURT, Dec 1 (APP):  Prime Minister Syed Yusuf Raza Gilani on Tuesday urged the German private sector to explore the vast untapped areas and invest in Pakistan to boost their profits and strengthen economic and trade ties between the two countries. In a keynote address at the “Fifty Years of Bilateral Investment Treaties Conference”, the Prime Minister said with increased economic cooperation their relationship, like the one two countries forged fifty years ago, can have a transformational impact on Pakistan and the world.

Prime Minister Gilani described the new treaty concluded earlier in the day between the two countries as a strategic initiative and a win-win scenario saying it would redefine and upgrade their economic relationship in the twenty-first century. “The new instrument is more investment friendly. It builds upon our long-standing corporate relations and takes them into a new era of mutually beneficial collaboration,” Gilani told the participants of the conference being partnered by Pakistan to commemorate the first investment treaty of its kind signed between a developing and a developed country, back in 1959.

Gilani said Pakistan with its market of 170 million people, a strategic location, at the cross roads of China, the Middle East and Central Asia, with a Free Trade Agreement with China and several more in the pipeline, has a vast agro-base and mineral potential. He said the country also provides an abundant human resource and an investment climate, rated highly for its business friendliness.

He said all sectors of Pakistan’s economy were open to business and foreign companies can start business without approval or sanction on hundred percent equity basis. He said foreign investments were given national treatment and remain fully protected by law. The prime minister mentioned that Pakistan has signed bilateral investment promotion and protection agreements with 47 countries of the world. “We have established Special Economic Zones (SEZs) where investors enjoy additional facilities. You can freely remit royalty, technical & franchise fee, capital, profits and dividends and enjoy high rates of return.”

He said the Pakistan Board of Investment has been mandated to facilitate and assist foreign investors adding that it will “hold your hand to fast-tack your projects under one window.” “As we seek to build a better future, for ourselves, for the region and the world, I invite you to become our partner. Like the investment treaty fifty years ago, it is time for another first. Let us take another step forward in our common pursuit for happiness and prosperity.”

The prime minister said the first step that was taken by Germany and Pakistan fifty years ago has now become a global norm and around 2600 Bilateral Investment Treaties among 179 countries have been signed so far and forming an integral part of the global financial architecture. “By guaranteeing German investments protection and facilitation, it opened the gateway for participation by German corporate sector in Pakistan’s development. It was a path breaking, norm making achievement,” he added. Prime Minister Gilani said Pakistan and Germany enjoy close and cordial friendly relations in all fields. “We deeply appreciate the support we have received from the German Government and people.  Your development assistance, your strong contribution to the Friends of Democratic Pakistan and your supportive role in the European Union, are all acknowledged with gratitude.”

Monday, November 30, 2009


ChicKing Franchise signs pact with Asiawide Franchise Consultants


25 Nov 2009
ChicKing Fried Chicken, a rapidly growing fast-food chain promoted by Non Resident Indian businessman, has announced the signing of the franchise pact with the Asia’s leading franchising consulting company Asiawide Franchise based in Malaysia.

This strategic move will help ChicKing to expand more than 25 outlets in the countries such as Indonesia, Malaysia, the Philippines, Thailand, Brunei, Vietnam, Singapore and other South East Asian countries. The expansion will be completed in three years. 


Pizza Corner Franchise announces the 'Pizza Corner - Tell a Story Competition', a consumer promotion for its stores

The competition is divided into 3 age groups - 5 to 8, 9 to 12 & 13 to 15 years; The last date to submit entries is 29th November 2009; The stories to be judged on the parameters of originality, narrative style and creativity





Once upon a time, there was a beautiful princess who lived in a large castle by the river. One day while strolling on the river bank, she ventured deep into the jungle and lost her way back home. It started getting dark and she could hear all sorts of wild animals calling...


If you or your child have got a story to tell and are aged between 5 to 15 years then head to Pizza Corner Franchise this week to participate in the 'Pizza Corner - Tell a Story' competition. All you need to do is to place an order for Rs. 250/- at Pizza Corner Franchise and ask the Pizza Corner customer relations executive for an entry form. You can fill in the entry form with your story which should not exceed 250 - 300 words. The last date to submit entries is 29th November 2009.


The Health Sanctuary Franchise launches new line of Advanced Weight Management Products


Health Sanctuary Franchise Personal Care launched a new line of Advanced Weight Management products encased in attractive Packaging nationwide. The Range of products include Items like the INSTA TRIM and the HS TRIM products that offer advanced solutions for day to day Weight Management needs of individuals relating to Obesity and associated consequential problems that people keep facing on a regular basis.


The range of products are an addition to the existing Services that Health Sanctuary Franchiseis famous for providing in the Health Care and Body Shaping domain. Some of these Services being Weight Loss, Slimming, Dermatology, Skin Care, Cosmetic Surgery, Laser Treatments and Permanent Laser Hair Reduction, Ayurveda, Nutritional and Medical Consultation etc etc.


 Health Sanctuary Franchise's Weight Management products are based on the age old wisdom of Herbs and Ayurveda, combined through Modern Scientific techniques and hence come under the umbrella of Health Sanctuary Franchise's Personal Care division.


Commenting on the new launch Ms Shubi Husain, Managing Director, Health Sanctuary Franchise Pvt. Ltd. said “The new Products have been developed after years of hard work and R & D. Helping us in our endeavour was T & S of France, in whose collaboration Health Sanctuary Franchisecould come up with the Revolutionary Herbal Formulation that helps reduce weight Silently, thus letting one live light naturally. One of our Products "Insta TRIM", the Anti Cellulite Gel was developed in keeping with the growing needs of our target consumers – the Urban Indian Men and Women.  Our target clientele is an individual who is confident, educated, demands natural, safe yet effective solutions that give visible results and who do not compromise on quality. With these new products we have successfully provided answers to all the Weight Management needs of our reverred Clients,”


The Pune edition of Times Franchise Expo draws the crowds






PUNE: The Times Franchise Expo, being held at Hotel Sun N Sand on Bund Garden road, witnessed a huge crowd of potential investors on its inaugural day on Sunday.

The expo has leading national and international companies offering proven business prospects through commercially successful franchise models. The exhibition, open between 10.30 am and 7 pm, is expected to attract more people on its concluding day on Monday.





The exhibition provides a platform for entrepreneurs to get a complete insight into all aspects of franchising. Entrepreneurs can interact with top brands to explore mutually beneficial partnerships. Among the exhibitors are companies dealing with pre-schooling, travel, diamond and jewellery, fruit, beverages, food items and consumer durables.





Manish Agarwal, director of Orion Calltech, a call centre training institute said, "I have participated in Times Franchise expos in other cities but this is the first time I have come to Pune. Compared to other cities, the respondents from Pune are young and ready to invest. Many of the queries we get are from start-ups and entrepreneurs and this is an encouraging indicator. Many people have started their own businesses and are ready to invest in franchise models."





Commenting on the response, Rajeev Agrawal, national franchise manager of Gitanjali Jewellery Retail Pvt Ltd said, "The jewellery business model is about high value, not quantity. Though there are a couple of outlets in Pune, the company would like to open more outlets in other locations. Potential investors are also aware of the huge investment needed in opting for a jewellery franchise and we received a number of queries. The response has been encouraging."



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NZ origin Crest Commercial Cleaning franchise expands business in India

New Zealand cleaning franchise Crest Commercial Cleaning is expanding its services in India after striking a deal that will see it employ 3,000 people in around a dozen cities. The company, which has until now employed 300 people in India, will carry out its expansion over the next two years. Crest co-owner Grant McLauchlan says that as the Indian economy becomes more sophisticated, clients, particularly international companies, are demanding better hygiene standards.


"Many people tell us that one of the big barriers to doing business in India is hygiene and so we are seeing savvy companies starting to make that a priority," he says. The cleaning sector in India is worth around $150 billion each year but McLauchlin says it is currently serviced by untrained, poorly resourced contracting companies. He says Crest is doing well because its training in India is based on New Zealand standards. Crest cleaning staff in New Zealand are required to undertake an NZQA recognised qualification that leads to a National Certificate in Cleaning and Caretaking before being hired.


Sunday, November 29, 2009

Minor Food Group finalises Master Franchise, plans India foray, to bring 3 Franchise Brands

Thailand-based Minor Food Group will enter the Indian market next year and plans to bring three of its major brands of ice-cream, pizza and cafe.The company, which owns the 'Swensen's' brand of ice- cream chain along with fast food brand 'The Pizza Company' and coffee chain 'The Coffee Club', plans to set up operations in India by mid 2010 through the franchise route.

"We have appointed a master franchisee for Swensen's in India and the first restaurant will be opened in Bangalore by the middle of next year. We plan to open one new Swensen's (outlet) every month in the country," Minor Food Group General Manager (Franchising) Gary Moore told PTI.


RE/MAX Franchise upbeat on Asia










RE/MAX, the international real estate brokerage franchise network, has expanded into eight States with 28 offices since April when it started operations in India. It is present in Delhi, Punjab, Chandigarh, Gujarat, Karnataka, Kerala, Maharashtra, Tamil Nadu and Andhra Pradesh.


According to a press release, RE/MAX International Vice-President, Mr. Larry Oberly, who addressed the first RE/MAX Winter Conference at Jim Corbett recently, said “the Asian markets are going to lead the next global boom in realty sector.” The event was the first meeting of about hundred RE/MAX associates from across the country to discuss the plans of the organisation under the mentorship of Mr Oberly and Mr Sam Chopra, Director, RE/MAX India.






Franchising seems to be immune from the global financial crisis, with some firms expanding even during the economic turmoil, officials of the Philippine Franchise Association (PFA) told The Manila Times in an exclusive roundtable interview on Monday. They added that during the economic crunch, most budding entrepreneurs adopted tried-and-tested operations and strategies of well-known franchises. “During these hard times, investors look for something that is viable. If you have they money, you would rather invest it in a sure thing, such as a franchise,” Elizabeth Pardo-Orbeta, President, Philippine Franchise Association explained.

Ma. Alegria Limjoco, association chairman, cited a study which noted that franchised businesses in the country have an about 90-percent success rate, while only 22 percent of businesses that start from scratch do flourish. “Entrepreneurs that open franchises follow a system, so there’s no hit or miss. If they follow the operations manual, they are going to be successful,” she added.

Better way to begin
Pardo-Orbeta said, “Unless a budding entrepreneur has a very different, unique, novel product, and money to back it up, there’s no better way to begin a business than to franchise.” She added that franchisors grant marketing and operations support to budding franchisees, and her association conducts seminars and trainings for franchisees.
It also helps that a financial institution like the Small Business Corp. assists those who are interested to become franchisees. “Small Business Corp. lends to businessmen who want to franchise, as well as matches them with PFA members,” Limjoco said. 

She added that one could start a franchise business with an investment of only P100,000, enough for a food cart or kiosk. Limjoco said the Philippine franchising sector has been growing about 20 percent annually, and this country was currently the most robust in Southeast Asia. She added that franchises account for about 25 percent of the $26 billion sales of the domestic retail sector, or about P300 billion. At present, the industry was composed of about 1,000 local and foreign concepts, Limjoco said.

Services grow the fastest
Limjoco added that franchises that offer services, such as Internet cafĂ©s, beauty salons and spas, have been growing the fastest—although food franchises were still dominant in the country. Plus, many of homegrown franchises are also creating buzz abroad, the association officials told The Times. Pardo-Orbeta cited the overseas expansion of Filipino food brands, such as Chowking, Goldilocks, Jollibee, Max’s, Potato Corner, Red Ribbon, Tokyo Tokyo and Waffle Time; in fashion and clothing lines Bench, Island Souvenirs and Kamiseta; and service-oriented concepts like Reyes Haircutters salon and Netopia Internet shops.

She said that the Philippines was now exporting local brands, thanks to Filipinos’ ingenuity. For instance, Pardo-Orbeta cited the concept of Potato Corner, a stall fully devoted to flavored French fries. “There had been no similar concept in the US,” she said. Its uniqueness has helped Potato Corner seal a deal for 10 outlets in the US, of which one is already operational and another is set to open by yearend, Pardo-Orbeta said. Reyes Haircutters franchise, meanwhile, reportedly was drawing in customers in London, as it offers more affordable rates than other salons there, Limjoco said.

Many Filipino franchises are now present in Guam, the Middle East, the US and our Southeast Asian neighbors, where they use the presence of Filipino communities as a beachhead for their business, Pardo-Orbeta said. “But Filipino companies later on also adjust to the needs of their consumers abroad, they diversify,” Limjoco said, adding that they later target mainstream markets, adjusting their formula to suit the tastes of customers in the expansion market.

Dubious franchises
Limjoco noted that franchising was defined as “replicating a successful business.” But the franchising association officials said there were some dubious companies capitalizing on the popularity of franchises.

Pardo-Orbeta said interested franchisees must first take a closer look at the brand they want to franchise. She added that entrepreneurs should be wary of those who ask for money right away. Franchisors tend to be careful to whom they sell a franchise, because they want to protect the reputation of the company, she explained. Also, Pardo-Orbeta advised entrepreneurs to ask for assistance from Philippine Franchise Association in choosing a good franchise to invest in, as the association screens prospective members to ensure that neither fly-by-night nor pseudo firms are accepted.
Way2Franchise’s Tribute to 26/11 Brave Hearts

This tribute is Dedicated to the men, women and children who lost their lives; those brave people who sacrificed their lives And the Heroes that responded to the emergency.  

26th November, 2008 was a horrible day, but it was also a day in which innumerable heroes showed unparalleled courage and love. Shaikh Toufik Mohammed, the brave tea stall owner at CST responded to the attacks, warned others of the attacks and took the injured to the nearby hospital.
The Police Officers and the NSG team that courageously went inside the Taj, Oberoi (Hilton) when others were going out. These heroes knew they were in a very dangerous situation, but they did not hesitate.


Mumbai's fire fighters , who battled not only fire but gunfire too during the 26/11 attacks to save hundreds of livesAnd that is what heroes do…they act in spite of great danger. They help others. They risk their lives for us. 39 firefighters and 27 police officers died in the line of duty on that day. They performed their duty at the highest level possible. They are paragons. We will never forget them. And 328 precious people lost their lives on November 26, 2008. And every one of them is a hero. We were in a war that day. And these heroes were thrust to the front lines. They were courageous heroes. Every single one.


Many people were injured in the attack; but they faced the day with great courage and love. They are all heroes. The emergency medical personnel performed their duties with tremendous efficiency, professionalism, and courage, despite the tremendous stress that they were put under. They are all heroes. And most importantly, numerous people lost loved ones on 26-11; and these 26-11 survivors have dealt with unimaginable pain, yet they have persevered. Their spirits are the strongest that you will find. And they are among our greatest heroes. They are very, very special people...heroes every one.


26-11 was a tragedy. But it was also a day of heroes. And we were all reminded about how great the people of this country are – for never has courage, compassion, and heroism been manifested in the way it did on that day…ever, anywhere.
We are a nation of heroes. May our nation win over terrorism. Let us take a moment to pay a tribute to those that sacrificed their lives to protect Mumbai. Here is an email that I received recently:

===

Meeting with H N Srinivas – Senior Executive Vice President, Taj Group of Hotels

Few weeks ago (October 10, 2009), I had a dinner meeting with HNS in Goa (I was there for a National Institute of Personnel Management conference – as a speaker). He narrated the 26th November 2008 terror attack on Taj Mumbai and there were some important points.
A.   Terrorist entry
     1.        They entered from the Leopold Colaba hotel entrance and also from the northern entrance – spraying indiscriminate bullets on the Taj security personnel and guests in general.
    2.        Though Taj had a reasonable security – they were surely not equipped to deal with terrorists who were spraying 6 bullets per trigger.
    3.        The strategy of the terrorists was to throw chunks of RDX in an open area that will explode and burn – creating chaos so that the guests and staff run helter skelter so that the terrorists could kill them. The idea was to create maximum casualties.
    4.        There were several critical gatherings and functions happening in the hotel on that day – a Bohra wedding, global meet of Unilever CEOs and Board members and 2 other corporate meetings were being held in the hotel – besides the usual crowd.
    5.        The firing and chaos began at about 8.30 p.m. and the staff including employees on casual and contract basis displayed exemplary presence of mind, courage and sacrifice to protect the guests who were in various halls and conference rooms.
B.   Stories of Staff Heroics
    1.        A young lady guest relation executive with the HLL gathering stopped any of the members going out and volunteered 3 times to go out and get stuff such as ice cubes for whiskey of the guests when the situation outside the hall was very explosives and she could have been easily the target of the bullets
    2.        Thomas George a captain escorted 54 guests from a backdoor staircase and when he was going down last he was shot by the terrorists
    3.        There were 500 emails from various guests narrating heroics of the staff and thanking them for saving their lives
    4.        In a subsequent function, Ratan Tata broke down in full public view and sobbed saying – “the company belongs to these people”. The wife of Thomas George who laid his life saving others said, she and the kids were proud of the man and that she did not know that for 25 years she lived with a man who was so courageous and brave
    5.        The episode happened on 26th November, a significant part of the hotel was burnt down and destroyed – the hotel was re-opened on 21st December and all the employees of the hotel were paraded in front of the guests
    6.        It was clearly a saga of extra-ordinary heroics by ordinary people for their organisation and in a way for their country. The sense of duty and service was unprecedented
    7.        The young lady who protected and looked after the HLL guests was a management trainee and we often speak of juniority and seniority in the organisation. She had no instructions from any supervisor to do what she did
a.    She took just 3 minutes to rescue the entire team through the kitchen
b.    Cars were organised outside the hotel as per seniority of the members
c.     In the peak of the crisis, she stepped out and got the right wine glass for the guest
    8.        People who exhibited courage included janitors, waiters, directors, artisans and captains – all level of people

C.   The Tata Gesture

    1.        All category of employees including those who had completed even 1 day as casuals were treated on duty during the time the hotel was closed
    2.        Relief and assistance to all those who were injured and killed
    3.        The relief and assistance was extended to all those who died at the railway station, surroundings including the “Pav-Bhaji” vendor and the pan shop owners
    4.        During the time the hotel was closed, the salaries were sent my money order
    5.        A psychiatric cell was established in collaboration with Tata Institute of Social Sciences to counsel those who needed such help
    6.        The thoughts and anxieties going on people’s mind was constantly tracked and where needed psychological help provided
    7.        Employee outreach centers were opened where all help, food, water, sanitation, first aid and counseling was provided. 1600 employees were covered by this facility
    8.        Every employee was assigned to one mentor and it was that person’s responsibility to act as a “single window” clearance for any help that the person required
    9.        Ratan Tata personally visited the families of all the 80 employees who in some manner – either through injury or getting killed – were affected.
  10.        The dependents of the employees were flown from outside Mumbai to Mumbai and taken care off in terms of ensuring mental assurance and peace. They were all accommodated in Hotel President for 3 weeks
  11.        Ratan Tata himself asked the families and dependents – as to what they wanted him to do.
  12.        In a record time of 20 days, a new trust was created by the Tatas for the purpose of relief of employees.
  13.        What is unique is that even the other people, the railway employees, the police staff, the pedestrians who had nothing to do with Tatas were covered by compensation. Each one of them was provided subsistence allowance of Rs. 10K per month for all these people for 6 months.
  14.        A 4 year old granddaughter of a vendor got 4 bullets in her and only one was removed in the Government hospital. She was taken to Bombay hospital and several lacs were spent by the Tatas on her to fully recover her
  15.        New hand carts were provided to several vendors who lost their carts
  16.        Tata will take responsibility of life education of 46 children of the victims of the terror
  17.        This was the most trying period in the life of the organisation. Senior managers including Ratan Tata were visiting funeral to funeral over the 3 days that were most horrible
  18.        The settlement for every deceased member ranged from Rs. 36 to 85 lacs in addition to the following benefits:
a.    Full last salary for life for the family and dependents
b.    Complete responsibility of education of children and dependents – anywhere in the world
c.     Full Medical facility for the whole family and dependents for rest of their life
d.    All loans and advances were waived off – irrespective of the amount
e.    Counselor for life for each person
D.   Epilogue
    1.        How was such passion created among the employees? How and why did they behave the way they did?
    2.        The organisation is clear that it is not something that someone can take credit for. It is not some training and development that created such behaviour. If someone suggests that – everyone laughs
    3.        It has to do with the DNA of the organisation, with the way Tata culture exists and above all with the situation that prevailed that time. The organisation has always been telling that customers and guests are #1 priority
    4.        The hotel business was started by Jamshedji Tata when he was insulted in one of the British hotels and not allowed to stay there.
    5.        He created several institutions which later became icons of progress, culture and modernity. IISc is one such institute. He was told by the rulers that time that he can acquire land for IISc to the extent he could fence the same. He could afford fencing only 400 acres.
    6.        When the HR function hesitatingly made a very rich proposal to Ratan – he said – do you think we are doing enough?
    7.        The whole approach was that the organisation would spend several hundred crore in re-building the property – why not spend equally on the employees who gave their life?


(Source: Deepak Salaskar)