Integrated Marketing Communication (IMC) Plan at Restaurant

Integrated Marketing Communication (IMC) Plan at Restaurant INTEGRATED MARKETING COMMUNICATION (IMC) PLAN Integrated Marketing Communication first germinated in 1980 when many companies came to realize the need for a strategic integration of their promotional tools, instead of keeping them in separate silos. Integrated Marketing Communication is a common-sense approach of looking at communication tool- not as isolated elements that communicate different things to a consumer but as inter-related parts that are jointly go to solving communications problems. IMC includes the various tools like, advertising, personal selling, sales promotion, direct marketing, events, internet etc. IMPOTANCE OF INTEGRATED MARKETING COMMUNICATION (IMC): It helps the firm or company to cope up with the changes occurs in the market. It helps to improves internal and external communication. It helps to know the customer demands that what type of product is needs to be devoted in what area? It helps company to achieve its objective, vision and mission. It increases the productivity of the organization because management is more focused through it on its competitors. It helps to build teamwork, commitment, esprit de corps and share-of-mind. Encourages consideration of new marketing tactics and media. Abstract on Restaurant Industry The financial rewards and the personal satisfaction associated with having ones own business can be considerable. When the business is one with a high level of social interaction, such as a restaurant, there are personal rewards that move beyond the financial satisfaction that may result. The paper explains that a successful restaurant becomes a part of the community that it serves and can become a focal point of that community. This makes the restaurant business very different from other types of businesses and adds to the personal satisfaction that the owner receives. The paper shows, however, that restaurants also have traditionally low operating margins and are one of the riskier businesses that can be developed. Now for my term paper on the topic Restaurant, I had taken a hypothetical example of company named Reliance. It is assumed that Reliance, One of the biggest conglomerate is entering into the restaurant business in a big way (initially into India). So here is the marketing plan that how the company plans to establish itself into the restaurant industry. For initiating the idea into practical shape, The company had broadly had formulated its stretegy on the basis of time horizon i.e short and long tem. A brief of that is highlighted below: Short Term In the initial phase the company plans to enter in to this business with with opening of the restaurants in 4 metros cities of India i.e Delhi, Ahmadabad, Mumbai and Chennai. Long Term In its long term objective the company plans to come up with a public issue to facilitate finance to establish its restaurants into various important cities and region of India and along with can expand into the foreign countries. Company profile: Reliance The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is Indias largest private sector enterprise, with businesses in the energy and materials value chain. Groups annual revenues are in excess of US$ 28 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India. Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical integration in polyester, fibre intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production to be fully integrated along the materials and energy value chain. The Groups activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles, retail and special economic zones. Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fibre producer in the world and among the top five to ten producers in the world in major petrochemical products. Every product before its launching has to make an IMC plan. The IMC planning process begin with a review of the marketing plan. A marketing plan is a written document that details the marketing objectives, strategies and tactics for an organization, product or brand, and guides the marketing efforts. THE IMC PLAN for Reliance Restaurant Situational Analysis: All marketing plan begins with a situational analysis, an assessment of the internal and external environmental factors are to be analyzed which affects the product, brand or organization. There are different points which come under it on the basis of which we will analysis our situation in the market. SWOT ANALYSIS STRENGTH: Brand image:-The main strength of that we can rely upon is the brand awareness of Reliance. No one in the market need to be introduced about the credibility and reliability of this company. It will become easy and boost our new diversified restaurant business. Strategy:-At the initial stage, the company plans to establish their restaurants in four metro cities of India and slowly will penetrate in to other regions and even in the foreign countries too. Customer Service: The company is very particular about the services to be offered to their customers as it is indispensible requirement for restaurant business to grow. WEAKNESS: Dynamic nature of customer: One of the important weakness for the resturant is the prediction of the nature,taste and prefrences of the customer is very difficult. Demographic changes: The another weakness is the demographic factor. The tradition changes and so as the prfrences for the food as we move from place to place OPPORTUNITIES: Potential: There is still huge untapped market in this business and really provide a potential to grow your business. THREATS Competitor: There are lots of excellent players already positioned themselves successfully like Barista, Mc Donalds, KFC. Etc., These will pose a tough competition for Reliance to enter into this business. The Competitive Situation: The restaurant industry is not an easy business to enter into because there are lots of excellent players already positioned themselves successfully but reliance as an excellent brand can really add up its value in this business. The various competitors in this business are highlighted below: Mc Donalds Burger King KFC Pizza Hut Coffee Cafà © Day (CCD) Barista The Promotion Situation: As the company already enjoys an excellent brand name, So this will prosper the marketing initiatives taken to promote its restaurant business. The company will be planning to promote heavily through through television, newspapers, magazines etc. Marketing Objectives: The main objectives of Reliance Restaurants are: To make the companys presence in the Restaurant industry. To look for diversification. To provide excellent facility to the customers and promotes companys goodwill. Customer satisfaction by providing food as per their region and tradition. Excellent service facility. Marketing Strategy: The company will initially be looking to open up their restaurants in the metro cities and then will look to diversify into other cities which is something as per the long term strategy. The marketing communication plan originates from the marketing plan and an integral part of the latter. The IMC objectives are laid down so as to fulfill marketing goals. In the IMC plan we select the right communication tools, integrate them, plans accompanying media and messages, and also allocates the communication budget to various tools. Following are the steps involved in the IMC planning process to be undertaken for Reliance Restaurant: Situational analysis: Like the marketing plan, in this we will also analyses the promotional situation. Following are the some common areas of analysis: Past promotional situation: There are already various competitors in existence in the restaurant industry ( mentioned above). So can analyze the various type of strategies followed by them to position themselves. This will basically involve analyzing the competitors strategy. Product situation: Barista, Coffee cafà © Day, KFC, Mc Donalds etc. are well established players in the restaurant industry and are implementing good strategies to phase out cut throat competition. If we take an example of KFC in India that how they changed their strategy in India to include vegetarian food in their menu as they earlier just served non-vegetarian food. Audience situation: Although there are many companies in this sector but still there is huge untapped market as the statistics depicts that most of the income being spent by the people on India is on food only. Competitive situation: As disclosed above about the extent of competition and had mentioned the various potential players in this industry. So had to analyze it fully. Determine the communication objective: Target Audience General high class people Business Class People Marketing Objectives Make the companys presence felt in the restaurant sector. Attract the business class people Media Strategy The main idea behind all of the integrated marketing communications and media strategy will be to deliver the message to the customers. Although the company has tremendous brand value but still it needs some efforts to make people aware about reliance entering into restaurant industry. Media Objective Use sponsorships as well as highly visual print and television advertisement To build a great image of the product this has a good brand image. Timing 12 month campaign commencing December 10th, 2010 Continually recycling and adapting to evaluation results over the next 1 years To change its strategy between the particular time periods so that customers get new things and new changes, the main purpose is also not to bore the person with same services. Advertising and communication tools Print ads in magazines Print is one of the oldest and the most highly regarded media of advertising and also a very challenging one. Executing a creative idea in the medium calls for various skills- creative writing, visualization, designing etc. The main idea behind the print ad is to attract the customer and provide them best knowledge. TV Advertisements While to plan a TV Advertisement, we should clear somethings which are very important for it: Brand itself The restaurants will be associated by the companys brand name i.e Reliance Restaurants. Big Idea The big idea can be initiated by associating a famous celebrity like Shahrukh Khan to promote our restaurants. Strategy Providing excellent support network to attract the customers like by initiating the online method of providing services and also providing thebest catering services to the customers. Tagline The tagline adopted for the resultants is Big Meal Time Newspaper advertising The advertisement can be initiated in the newspaper as it results in wide and effective coverage. Billboards The billboards is regarded as the modern source of advertisement in which the electric boards are displayed on the road side. So it looks to be an innovative idea to display the billboards in the cities where the resurants are established. Events: The advertisement can be done through events. It is regarded as most innovative and a creative kind of advertisement which generally produces results and promotes mass awareness. Direct marketing tools It is strongly recommended that nature fresh must an effective web presence in this interactive world .To promote the entire site, an online marketing program must be launched. A comprehensive, highly targeted group of destination web sites must be chosen for the program. The web site should be registered with yahoo search portal. And a number of tactical elements will help drive online awareness and inquiries into the program including: Online webinars Online newsletters Search engine registration Web site links Content marketing and licensing Opt-in email Specialized promotions and partnerships Evaluation of the Planned IMC Evaluation of an IMC plan is not easy because often communications effects are difficult to measure. At times they may not even have a direct impact on sales or profitability; effects may be delayed, etc. Therefore it is important to set the objective or standards for measuring performance in specific, measurable terms to make the evaluation possible. After doing all these now its time to evaluate the performance, the performance is satisfactory as we had imagined because its quit difficult to enter into the resturant market and establish yourself as there are already huge potential marketers in existence like Mc Donalds, KFC, and Barista etc., but still we had developed a very good strategy of firstly establish ourselves into the metro cities and accordingly will penetrate into other cities and then globally. Manager has to measure the actual performance either through consumer surveys or sales figure. Monitoring of the revenues generated on weekly basis. A general market research can be undertaken to generate the public views. Manager got to know these outcomes by comparing actual performance with set standards of new product. These steps also helped out to take further decision or plans. References www.relianceadagroup.com Book: Shah Kruti and DSouza Alan,Advertising Promotions an IMC Perspective, published by Tata Mcgraw Hil.

Interpersonal Communication in an Intercultural Setting :: essays papers

Interpersonal Communication in an Intercultural Setting Cultural growth in the twenty-first century has heightened the emphasis on interpersonal communication in an intercultural setting. As our world grows, expands and becomes increasingly more interconnected by various technological advances, the need for effective interpersonal communication among differing cultures has become quite clear. Due to the advancement of technology in today's world, a world in which some businesspeople are involved in transactions with other businesspeople in faraway countries, the call for knowledge of intercultural communication within this setting has become a reality. Interpersonal communication is a form of communication that involves a small number of people who can interact exclusively with one another and who therefore have the ability to both adapt their messages specifically for those others and to obtain immediate interpretations from them (Lustig et al, 1993). Although interpersonal communication is usually thought of as being perf! ormed in small, centralized groups, a need to broaden these groups and bring about a general feeling of cultural awareness has become apparent. To a certain degree, all communication could be called interpersonal, as it occurs between two or more people. However, it is useful and practical to restrict the definition to distinguish those relationships that involve a relatively small group of people, such as couples, families, friends, workgroups, and even classroom groups from those involving much larger numbers of people, as would occur in public rallies or among massive television audiences. Unlike other forms of communication, interpersonal communication involves person-to-person interactions. Additionally, the perception that a social bond has developed between the interactants, however tenuous and temporary it may seem, is also much more likely. Intercultural communication is a symbolic, interpretive, transactional, contextual processing tool with which people from different cultures create shared meanings (Berko et al, 1998). When we speak to someone with whom we share little or no cultural bond, it is referred to as intercultural communication. Our need to communicate across culture can be very beneficial personally and professionally. Within an intercultural setting, nonverbal and verbal communication are both prevalent in emphasizing the differences in cultures. The way we act and the things we say determine whether or not we belong in a certain culture. Nonverbal communication systems provide information about the meaning associated with the use of space, time, touch and gestures. They help to define the boundaries between the members and nonmembers of a culture (Koester at al, 1993). In order to fully enjoy and benefit from interpersonal communication in an intercultural setting, one must first gain a fu! ll, comprehensive knowledge of the determining factors of culture.

Television Essay

Television has Made our Lifes Better Nowadays, television is our main source of news and current events around the world. It is indefinably the most popular media in society today. By watching TV,we are kept updated of the various events and dealings occurring around the world. It provides us with broadcasts of the news and weather stations and many more,therefore helping us not to be dropped back from the world of information. People need to be aware of whats going on around them and to keep on top of current affairs,and television allows us to do so.Without it we would be an outsider in society and totally cut off from the happenings in our local area as well as the political world(Palmer,2010). Not only this, but it helps us increase our feeling of humanity towards other people and provides us with crucial knowledge and information. This essay however will discuss both the positive and negatives roles television has in our lives today. Each positive aspect will contrast with a neg ative showing the different opinions.The essay will convey how television makes us more intelligent,assists us to lose weight,acts as a catalyst in the family home,provides us with knowledge how to do certain things and also how it is a great form of entertainment. On the otherhand we will see the downfalls television brings to society such as is it dumbing down our society? Is it making us gain wait rather than lose it? Are we abandoning are families to watch our favourite programmes or Is it just a waste of time?. These topics will all be seen throughout.Many people will agree that watching television makes people more intelligent for instance people that watch educational television such as documentaries,discovery channels,national geographic,science and history channels are very benefited, as it may encourage people who take an interest in them to make a career out of it. Educational TV does not only benefit adults but children aswel. Children can watch shows such as â€Å"Sesa me Street†,†Dora the Explorer†,â€Å"Indiego go†,â€Å"Bear in the Big Blue House† and many more which entertain them and educate them at the same time.Several programs and movies reguire a lot intelligence to follow and understand,these shows are very beneficial as they get our brains working and encourage us to look at things in different ways. In other programs we obtain information which we may not have known before. From watching TV we can learn something new everyday. However, in contrast to television being a great advantage to our intelligence levels, it is also argued that television is merely dumbing down our society. We need only watch some of Americas reality TV shows and we can see why its effecting our youth. A study conducted in 2005 and published in the Archives of Adolescent and Pediatric Medicine showed that kids who had their own television set scored lower on mathematics tests†Numerous other tests have supported this informat ion to make it almost clinically proven. Its very important to encourage our youth of today to read and get involved in other various arts which will help them with their academic studies. (Leong M. D. ,2008) Television is also very helpful in the form of excercising. When using exercise equipment such as an exercise bike or treadmill for example,we all know it can get very boring.This is where the TV comes in to play as it takes our mind-set from the running or power walking perhaps to that of the happenings on the television screen. We understand that reading is difficult because of the movement and therefore is less appealing. When we listen to the radio or our ipods, we are entertained but still our mind is not fully occupied as we have nothing to look at, this being the reason why the majority of gyms have televisions rather than radios. (Jennifer Wagner,2009) Another way in which television makes exercising a lot easier,are the exercise and workout videos which are available t o buy.This way you don’t have to spend as much money on gym membership fees or a personal trainer for that matter,you can just do it at home. (Palmer,2010. )On the otherhand,people may also argue the opposite to this point. As stated by Kristie Leong, she claims by sitting in front of the tv set actually makes you make on the pounds rather than lose it,†burning a paltry 68 calories per hour. Not exactly a formula for good health and fitness†. She also argues that the majority of people whilst watching television consume many high calorie foods,making matters even worse.Television is also a great way of representing togetherness. Its a simple reason for family to spend time together. Setting aside some hours specifically for family viewing encourages conversation,interaction and a certain sense of togetherness. Television brings many different conversation topics both in to a family home and work. It helps people who may have little in common, to talk and therefore acts as a good catalyst for family interaction(Keanney,2010). From time to time, something which occurred on TV can lead to discussions of something that happened in our own daily lifes hich is a great conversation starter. (Wagner,2009) Furthermore, this is not everyones frame of mind as many people believe that family life and interaction is negleacted beacause of television. It’s often the case that a family could sit in the one room for hours on end without actually speaking to each other. Sitting there like zombies totally engaged in whats happening on the TV and not even acknowledging each other. Not only that but many people,children in particular eat their dinners in front of the television screen.This means that conversation of a family around the dinner table is totally gone and if our youth do it,it doesn’t leave much hope for the future. (Banks,2008) Television has various benefits and another one being the useful way in which it tells you how to do certai n things. Whether it’s a cooking receipe you need,or how to arrange flowers in our gardens right as far as how to build a shed. There seems to be a channel to suit everyone. We can become very skilful in our everyday lifes by watching certain programs. Television is here to teach us and improve our ideas.Another point,â€Å"with cable channels such as HGTV and the Food Network, you can actually learn how to do almost anything to or for your home†. (Wagner,2009). Television helps us to broaden our knowledge of everyday life,teaching us right from wrong,and also the correct manner in which to act. It enhances our spiritual lifes in many ways. With the variety of language teaching programs we are provided with nowadays we are given the chance to learn any of the world’s most popular languages. For children in particular TV can be very enriching in their academic life.The History channel can expose children to people,places and cultures they would not have encounter ed otherwise. It engages them, and teaches them different ways of life all over the world. This can be very helpful for a childs development,introducing concepts which are both complex and intellectually stimulating. It encourages the child to be more aware of their surroundings, leading them to be more engaged and involved in classes that deal with those specific topics. (Keanney,2010). Dissimilarity,people argue that television is merely a waste of time.As Kristie mentions if people only knew the amount of time the waste watching television they would be shocked horribly. They could in fact make a list of more productive activites to do, for example spend time with family and friends,play a sport,take up a hobby or even test yourself by learning a new language. People discover there is a lot more to life than watching the latest happenings on the reality TV programmes. (Leong M. D. ,2008) Television is most definitely our greatest form of entertainment to date.With all the various types of programmes there is something to suit each individual. Comedy programmes for instance are a great source of entertainment,as they make us laugh and enjoy ourselves. As the saying goes â€Å"laughter is the best medicine. It has been discovered to lower blood pressure,increase circulation and so on†. With other programmes such as cartoons,discovery channels,movies,sports,weather and many more you will never be bored. The television can be seen as our companion when we are home alone with nothing to do. Without it we would be lost.For those who adore nature and like to watch scenery abroad but cannot afford to travel with recent circumstances,the television is a great source to just sit back,switch on a travel station and enjoy the beautiful nature and scenary of the world. (Mehta,2008). In contrast however, there are certain aspects to television which should not be broadcasted. A lot of television material is not properly monitored making it easier for inappropriate content to be shown on TV,for example violence or inappropriate sex scenes which should not be viewed by the public eye.Not only could this damage society but also our youth of today who need to be protected from such behaviour. (Kulkarni,2009) In conclusion,we can see how the positive aspects of television outweigh the negative. A lot more good comes from TV rather than bad but nevertheless,we are still aware of the negative. What it has done, is made peoples lifes change for the better providing people with more entertaining,exciting and in fact more educated lifes. It brings people together and is something all individuals can share and relate to.Its no doubt a great resource which has turned the world upside down for the better,opening a whole new outlook on life. Reference List: Palmer,B. Break Studios Contributing Writer(2010) â€Å"Benefits of Television†,(Made Manual Instructions for Life (www. mademan. com/mm/10-benefits-television. html) Leong,Kristie M. D,featured contributer in health and wellness(2008) â€Å"The Disadvantage of Television Viewing†,( http://voices. yahoo. com/the-disadvantages-television-viewing-) Wagner, J. (2009) â€Å"Top Ten Benefits of Watching Television† www. connectwithyourteens. net) Keanney,I (2010) â€Å"Advantages for Children to watch TV† (LIVESTRONG. com) Banks,A (2008) â€Å"Advantages and Disadvantages of Television† (http://www. fictionpress. com/s/2482693/1/advantages-and-disadvantages-of-television) Mehta,N (2008) â€Å"Advantages of Watching Television† (http://voices. yahoo. com/advantages-watching-television) Kulkarni,A(2009) â€Å"Advantages and Disadvantages of Television† (http://www. infobarrel. com/Advantages_and_Disadvantages_of_Television)

PRIVATISATION OF DEFENCE INDUSTRIAL BASE IN INDIA - Free Essay Example

Sample details Pages: 6 Words: 1860 Downloads: 2 Date added: 2017/06/26 Category Industry Essay Type Narrative essay Did you like this example? Our endeavour must be to meet the twin imperatives of technological relevance and cost effective delivery. Given the expansion of our private sector, both in technical and financial terms, we are at the threshold of a future in which the private sector contributes to the national cause of high technology defence. There is need for a new institutional framework to involve the private sector, to ensure continuous dialogue as well as to provide incentives for risk taking. Don’t waste time! Our writers will create an original "PRIVATISATION OF DEFENCE INDUSTRIAL BASE IN INDIA" essay for you Create order We should encourage substantial investment in production capabilities and also in defence related RDs.  [1] Manmohan Singh, PM of India Introduction 50. The history of involvement of private industry in defence production in India goes back to 1991  [2]  which was followed by government initiatives in 1998 to establish close interaction of MoD and services with the Confederation of Indian Industries (CII). The constitution of Group of Ministers  [3]   committee tasked to examine the Kargil debacle, the policy reforms implemented by the government since 2001  [4]  and the constitution of Kelkar committee in 2004  [5]  , were primarily aimed at overhauling the acquisition process and promoting indigenous development to achieve 70% defence requirements from indigenous sources by 2010. The major fall out of these was the Defence Procurement Procedures, DPP 2002, DPP 2004, DPP 2006 and DPP 2008  [6]  . 51. The dramatic differences between technologies used in commercial and military systems in the past have narrowed down with the changing pace of the scientific innovation in the commercial sector especially in the fields of nano-technology, robotics, computer simulation, and stealth technology. As a result, military organizations in developed countries have turned to commercial sector for dual-use technologies and new breakthrough scientific discoveries especially with the decline in the defence spending in post Cold-War era for reasons economic as well as political. Emerging Private Sector 52. In the last two decades, the Private Sector has expanded immensely  [7]  with the DPSUs outsourcing more than 30% and OFs outsourcing 80%. The private sector can produce much more efficiently in a much less time frame and hence their role in Indian defence industry cannot be underestimated despite their constraints. Various private sector companies have ventured into the defence sector and have been issued license by the government. These companies have already taken up production of defence equipment by entering into joint venture (JV) with many foreign companies. Some of these are  [8]  :- Mahindra Mahindra Ltd, New Delhi. Larsen Toubro Ltd, Mumbai. Max Aerospace Aviation Ltd, Mumbai. HBL Power Systems Ltd, Hyderabad. Ramoss India, New Delhi. Tata Motors Ltd, Mumbai. Alpha Phazotron Radar Equipment Systems Pvt Ltd, Bangalore 53. EADSs helicopter subsidiary Eurocopter is associated with HAL since 1962, manufacturing more than 600 Alouette 3 and Lama (known as Cheetah and Chetak locally) helicopters. EADS has plans to set up pilot training facilities in India for the civil and military segments and plans to invest ÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬7-8 billion ($9.5-11 billion) over the next 10 years. 54. In Nov 2009, Mahindra Group created Mahindra Defence Systems in India  [9]  which is a JV with BAE Systems. Mahindra Group has simultaneously acquired majority stakes in two Australian defence companies, Aerostaff Australia and Gippsland Aeronautics, signalling its entry into the defence and aerospace business. Tata has entered into JV with AgustaWestland to assemble the AW119 in India. 55. Honeywell Aerospace  [10]  , which provides integrated avionics, engines, systems and service products for the aerospace industry, is one example. The US Company has a design and development centre in India that it hopes to expand in the coming years. Airbus has set up the Airbus Engineering Centre India in Bangalore wher e local engineers help develop capabilities in modelling and simulation, covering areas such as flight management systems and aerodynamics, to help in the design and production of aircraft such as the A380 and the A350. It is also working with Indian IT firms such as CADES, HCL, Infosys, Quest and Satyam to offer support across various aircraft programmes. 56. India has an inherent edge over several other nations because of higher skills and lower costs of production. This makes India an ideal contender for joint ventures. HAL has entered into joint ventures with many overseas aviation system companies to undertake design and development of new systems in India. Some of these are the BaeHAL, HAL Edgewood, HELBIT etc. Many other software and hardware giants involved in the aviation hardware and software development especially in the embedded and real time system domain have also established their facilities in Bangalore. Some of these are GE Intelligent Systems, Honeywell, etc. 57. Given their rapid growth over the last decade, it is perhaps no surprise that Indian software companies such as HCL, Infosys, Infotech, Tata Consultancy Services and Wipro have been active in the aerospace industry for several years. Increasingly, they are benefiting from the engineering services outsourcing programmes. This will help India evolve from IT and low-end business process outsourcing work to high-end design services. Overseas companies view the Indian companies as long-term partners and not as mere suppliers/vendors  [11]  . Initiatives 58. The initiatives undertaken by government towards promoting involvement of private sector industries towards high end defence requirements are:- Opening up of defence sector (in 2001) for 100% participation by Indian private sector and upto 26% FDI. Provision of the offset clause in DPP for any procurement from a foreign vendor beyond 300 crores. Introduction of a procurement clause Buy and Make (Indian).This clause is expected to create a positive impact on the private sector industry and could encourage formation of joint ventures or alliances for co-production with Indian companies. Issue of RFP to Indian private sector and the companies having a greater say in negotiations, in obtaining technology from foreign Original Equipment Manufacturers (OEM) as well as in co-production. Sharing of information on long term perspective plan with the Indian industry and the involvement of the domestic industry in acquisition planning. Funding RD cost to the extent of 80 per cent by the Government. Non starters 59. Inspite of the various measures taken, there has been no remarkable change in the current state of indigenisation. Only a few of Indias top private sector companies are involved in certain small value defence contracts. It needs to be realised that the goal of self reliance would remain a pipe dream if it is to be achieved by just banking on public sector alone. 60. The involvement of private sector is mandatory to harness the best technology available and reduce imports. Considering the measures taken over the last two decades, India presently is far from achieving the indigenous figure of 70%. Equipment worth $50 billion has been bought from foreign suppliers in the last decade with the expenditure likely to touch $100 billion in the coming decade. The reasons to these are:- A number of defence-industry seminars, conferences and exhibitions have been held in the recent years but old mindsets, complex procurement procedures and clout wielded by the public sector have bee n acting as major deterrents to any meaningful participation of the private sector. Inspite of policy reforms of 2001, at the Defence-Expo 2010 the foreign defence majors were still lined up to display their wares. Hence, the efficacy of the initiatives of 26% FDI needs to be given a relook. While we trust foreign suppliers (essentially because there are few alternatives) governed as they are by their respective national laws that have in-built sanction mechanisms to restrict supplies in various situations, we have not extended the same trust quotient to Indian Industry. As on date the private sector is at a distinct disadvantage as against OFs and DPSUs. The OFs and DPSUs have a non-competitive edge, because of its close proximity to the MoD. In all deals under TOT, default agency that receives the benefit is always a DPSU, even if a private sector company is better placed in terms of know-how to absorb the technology and the available infrastructure. The private sec tor is also inhibited by technical limitations primarily due to its late entry into the defence industry and needs to institutionalise joint ventures with established foreign defence majors. However, the FDI cap of 26% is an impediment. Way Ahead 61. The role of the Department of Defence Production thus needs to be drastically retooled to evaluate Indias requirements not in a public sector context but a larger India paradigm. Essentially the initiatives needed are:- De-licensing. The licensing system needs to be given a relook or done away with for manufacturing of defence equipment by private companies except for very critical products. Foreign Direct Investment. FDI limits should be enhanced to 49% for all defence production with sensitive content and in non-sensitive areas raised to 76 or even 100 per cent. This would obviate the need for government to defray 80 per cent of the RD costs. Private Equity Participation Government must seriously consider private equity participation in the defence-related public sector to unlock their potential and maximise returns on sovereign investment over the decades Developmental Partners. During development phase suitable industrial entities needs to be identified to parti cipate in the activity as developmental partners. Limited Series Production (LSP). After joint development, the industry partners needs to be co-opted for execution of LSP that can meet the service requirement. Bulk Production Bulk of production needs to be outsourced to private players in a phased manner over several years. This could ease the problem of available OFs and DPSUs while at the same time utilise the resources available in these public establishments. Spin-offs The spin-offs from the defence technology need to be exploited in the commercial domain by effecting required repackaging/modification. Marketing. Scope also exists for industry to seek potential market for these products in India/Abroad with due approvals. Also the collaboration of private companies needs to be exploited for marketing of the products. Tax benefits. The government needs to provide a level playing field to private industry in terms of excise and custom exemptions for imports of cert ain components to be utilised in defence equipment. Promoting Interactions. DRDO has been actively promoting private industries participation in its entire gamut of activities by regularly interacting with the interested players as well as with organizations such as CII, FICCI, ASOCHAM. DRDO has organized several DRDO-Industry meets to appraise industry veterans about opportunities awaiting them in Defence RD. This would defineitely help in exploiting the available expertise in industry. Sponsored Research. Government needs to look into orient the fresh brains in the IITs, NITs and other educational institutions in India towards RD of the projects in hand as well as perspective projects. This can be taken up through Sponsored Research as well as industrial consultancy. Public Private Partnership. There is a need to promote public private partnership as the public sector has excellent infrastructure, manufacturing facilities and a highly experienced task force. It will be a waste of national resources if these assets are duplicated by the private sector. The private sector, on the other hand, can bring in latest technology, managerial practices, marketing skills and financial management. Therefore, a well-blended fusion of both will result in synergising of their strengths through economies of scale and prove mutually beneficial. Joint Ventures. The Brahmos project, which is the governmental level collaboration between the GOI (Bharat) and Russia (Moscow), is one good example of implementing organisational level change. The same needs to be followed up in other projects in pipeline. NOTES AND REFERENCES