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ISSN : 2249-1066
VOL.1-NO.3, June 2012

Adhyayan
A Journal of Management Sciences

Adhyayan
A Journal of Management Sciences

ISSN : 2249-1066
Vol.1 No.3, June 2012

EDITORIAL BOARD

Editor-in-Chief
Prof. (Dr.) M. Mehrotra
Director, SMS Lucknow Consulting Editor:
Managing Editor: Dr. Alok Kumar
Ms. Suchita Vishwakarma Associate Professor
Lecturer, SMS Lucknow SMS Varanasi

Member Editorial Team

Ms. Ratna Yadav Mr. Satyajeet Asthana
Lecturer SMS Lucknow Lecturer SMS Lucknow

ADVISORY BOARD

Prof. B. P. Singh Prof. (Dr.) H. J. Ghoshroy
Former Professor, Director & Dean, IMSAR
Delhi School of Economics, MD University, Rohtak
New Delhi

Prof. Arunabh Chaterjee Prof. (Dr.) Rattan Sharma
Professor & Ex HOD-Dept. of Commerce Director, Bhartiya Vidya Bhavan’s Usha
University of Lucknow, & Laxmi Mittal Institute of Management
Lucknow New Delhi

Prof. S. K. Singh Mr. A. T. Raman
Faculty of Management Studies Chairman SEAA Trust
Banaras Hindu University & Accreditation Consultant
Varanasi New Delhi

Dr. Somya Singh
Associate Professor
Dept. of Management Studies
Indian School of Mines, Dhanbad

Adhyayan- A Journal of Management Sciences is half yearly publication of School of Management Sciences,
Lucknow, India. The vision of the Journal is to present a pedagogic platform to scholars all over the world to publish
their novel, original, empirical and high quality research work. The editorial board would like to publish research
papers/articles from scholars pertaining to contemporary developments and practices in all the areas of
management and emerging issues in allied areas of management.
No part of any paper/article can be reproduced without the prior permission of the Editor-in-Chief, ADHYAYAN – A
Journal of Management Sciences.
Disclaimer: The view and opinions presented in the research papers / articles published in the Journal are solely

Editorial

It is a matter of pride and honour to introduce this second issue of
ADHYAYAN - The Journal of Management Sciences, Lucknow. This issue of
the Journal incorporates a congregation of various research papers on
diverse fields of Management and allied areas.
This issue includes seven quality research papers, one literature review and
one book review. The authors are a mix from various well-known institutes and
universities of the country. I am sure the journal will serve as a valuable
addition to the management literature and will also prove to be a valuable
reference material.
I would also like to place on record my sincere thanks to all the members of the
editorial advisory board for their unrelenting support to Adhyayan. I also
sincerely thanks the appreciable efforts of the members of the editorial team
for helping to bring out this issue of the journal.
I am also grateful to reviewers for providing their comments and suggestions.
Our sincere appreciation goes to all the authors for their timely contribution
and to the readers for their incessant support.
We look forward to your comments on this issue and suggestions on matters
concerning the journal.

Prof. (Dr.) M. Mehrotra
Editor-in-Chief
School of Management Sciences,
Lucknow

Contents

1. Venture Capital, A Tool In promoting Entrepreneur ship 1
Dr. Bhargav S. V. Ramachandra & G. Srinivasa

2. Workplace Stress- The Theoretical Study on Reasons and Coping Methods of Stress
Vaibhav Misra & Manish Kumar Srivastava 5

3. A Comparative Study of Registered & Foreign Venture capital Investment with
special reference to BT Sector in India
G Srinivasa & Sir M Visvesvaraya 10

4. ITC-e chaupal - A Strategic Agribusiness Approach towards Strengthening the
Market Reach in Rural India
Dr. K.K Agarwal & Preeti Singh 18

5. Case: The Growth Question
22
Moid U. Ahmad

6. Crowd Sourcing –a New Management Mantra
24
Devi Premnath & Dr. C.Nateson

7. Growth of Currency Futures in India
27
Dr. Avinash Bajpai

8. Public Private Partnership in Infrastructure - Roads Sector in India
Dr. P.K. Sinha & Sanchari Sinha 31

9. Bridging the Health Inequality and Strengthening Public Health System Through
Public Private Partnership
40
Dr. Rajesh Kumar Shastri & Rinki Verma

10. Software Quality Management - An Overview Of CMMI And TPI Quality
Assessment Procedures
51
Prof. Karuna Devi Mishra


Venture Capital, A Tool In promoting Entrepreneur ship
Dr. Bhargav S. V. Ramachandra* & Mr. G. Srinivasa**

ABSTRACT
Venture Capital (VC) is usually defined as an independently managed, dedicated pool of capital that focuses on
equity or equity-linked investments in privately held, high growth companies it is one of the important factor which
contributes to the growth and potentiality of business as well as for entrepreneurs Entrepreneurs and SME managers
face two key choices when financing their ventures: debt or equity. Debt in the form of personal loans (including credit
cards) and bank loans, key sources for most nascent ventures, gives efficient incentives for managers to exert effort and
allow entrepreneurs to maintain control. The availability and utility of debt vary significantly with economic conditions,
which, in turn, will have an impact on the supply and cost of capital. To a lesser extent, entrepreneurs rely on equity
financing, in which parties external to a venture obtain partial ownership (and control) in exchange for financial
capital, thus diluting managers' incentives to expend effort. Equity financing is particularly important for high-growth
ventures, since the amount of debt financing available may not permit sufficiently rapid growth in volatile industries (for
example, technology). Objectives and incentives that are well aligned between investor and manager are the most
efficient and facilitate additional value for the venture.
The paper tries to bring out the effect and growth of venture capital funding over a period of time with that off
traditional funding, Venture capital General Investment criteria decided by the venture capitalists, and finally adding
the conclusion of Role and importance of Venture Capital in the Entrepreneurial Development.

INTRODUCTION KEY ISSUES IN THE VENTURE CAPITAL
Venture capital has already made drastic impact in INVESTMENT AND FUNDING
the globalized economy by creating high standards of 1. Venture capital requirements varies between
living and steep increase in the GDP in the developed $50000 and $ 500000
countries like US, UK, Japan etc. The challenges in 2. Venture capital growth varies between 20% to 30%
India seem to be a narrow way wherein the small and over a period of time
medium entrepreneurs go for making a small 3. It involves high technology investors who take the
investment from the financial institutions. Venture risk of investment in the upcoming small and
capital has a sterilized the economic crises by the way medium enterprises
of inducing the foreign investors. Merchant bankers, to 4. Companies can project high amount of cash flows
go for providing venture capital for the entrepreneurial over a period of time within three to five years
development with a ease of flow of capital even to the
domestic markeat as well. VENTURE CAPITAL INVESTMENT PROCESS
Venture capital is a high risk investment made by
Venture capital investment process is driven by the
the investee companies in the new business for returns.
growth and potentiality of the investor and
Venturing as a entrepreneur in this economic crises
entrepreneur as well stages include,
certainly is a challenge because of the adverse returns
of the market earned in the subsequent years. Adding 1. Fund conception and investment strategy
to this venturing as a entrepreneur not only involves targeting the investment opportunities: This
business skills, but also selecting the right type of the includes the preliminary screening of the
investment companies at the right time and backing the investment process. In this step, the investor tries
return on the investment, hence it is a mere fact to know to get into the total fund requirement for an
how venture capital normally works, venture capital enterprise with the risk involved; on the other hand
investment process, risk and return expected by from the perspective of the entrepreneur, this
investee company on the investment, Supporting includes, finding out the best alternative of
services rendered by venture capitalists, and finally investment. Exploring the investment
challenges ahead for the venture capitalists and opportunities plays a key role in the organizations
entrepreneurs in the up coming era. This conceptual growth and profitability hence in order to have
paper tries to cover all these aspects which are useful steady growth the entrepreneur should end up in
for the business and entrepreneurs as well. selecting the best type of investment alternative.

* Dr Bhargav S V Ramachandra, Director, TTL College of Business Management,Mysore
** Mr. G Srinivasa Research Scholar, Bharathiar University Coimbatore,

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2. Raise capital for investment: Raising the capital 7. Informal Investment: Venture capital firms seek
is one of the important steps in the venture relatively high rate of return on the capital
investment process. Venture capital itself is called employed. As such it is mere a fact that the venture
as risk capital as the investor is risking his capitalist will definitely perform enough due
investment in the new business hence rising the diligence process before making such investment.
initial capital for investment may be difficult, From the entrepreneur's perspective selecting the
however venture firms seek value to the right type of venture capitalists becomes difficult
investment and gets the maximum return on the particularly in selecting the informal investors
investment. because most of the informal investors will look
3. Generate deal flow with New and young into the market opportunity, potentiality of the
companies with high potential: “Most venture business, cash flow in the subsequent years and
capitalists have a short list of first class players and return on investment, and making the investment
those are the horses you back”, says, Norwest exit.
partner Ernie Parizeau. With the above actionable (Source: Harvard Business School Press, from Venture
statement, it is very clear that generating the deal Capital at the Crossroads by WD Bygrave, J.A
flow is not an easy task for the investors; hence Timmons Boston, Harward Business School
most of the venture capitalists try to make their Publishing Corporation)
investment in the new and young companies.
Though there is high risk of business success as the CHARACTERISTICS OF VENTURE CAPITAL
venture capitalists and so they are called risk INVESTMENT
capitalists. They ensure that the business meets the
growth potential. 1. Equity investment: Venture capital investment is
a type of equity finance that is invested in the new
4. Screen and evaluate the deals: Evaluating the upcoming projects. As it was noted earlier, venture
deals play a significant role in the venture capital capitalists perform enough due diligence before
investment process. Most of the venture capital making such investment which includes review of
commitments happened in India in the year 2000 business plan, meeting the full management team,
to 2004 wherein most of new venture capital firms see any product prototype or design that may exist
entered Indian market with an aggressive and so on.
investment which has helped most of the
entrepreneurs to start a new business. On the other 2. Substantial minority/equity stake: Venture
hand, venture capitalists have started to screen and capital investor expects the minimum return on the
evaluate the deals on the basis of different types of capital employed as such he may acquire
risk such as market, bailout risk, liquidity risk substantial minority or stake in the company. This
growth risk etc., concept holds good in several situations because
the venture capitalist not only funds but also
5. Valuation and negotiation structuring the provides various non financial support services to
deals: At last the venture capitalists value their the enterprise making the enterprise to achieve the
investment and return on hand to hand. Venture expected growth and profitability.
capitalists add value to their investment by the way
of strategy development, active board 3. No “Takeover Management Mentality,” but
membership, attracting outside expertise, rather has a “Company First Philosophy”: This
providing all non financial support to the firm so as statement signifies that the venture capitalists
to make the firm to reach at its peak. The non work for the enterprises and not for the self. This
financial support as mentioned above will be would rather be put as providing the full assistance
delivered on time to the entrepreneur whenever to the enterprise acting as unique strength of the
required this support service will definitely benefit venture capitalists which certainly adds value to
the entrepreneur in getting the business success the enterprise.
which will also add value to the venture capitalists 4. Board Position – desired but not mandatory
and make him find and structure his other (Passive vs. Active Investor): Most of the venture
investment alternatives. capitalists prefer to exit when the investment is
6. Exit mechanism: Once the business develops and backed up. In certain cases venture capitalists
makes profit, venture capitalists tries to exit. This prefer board position, which depends on the type
can also happen when the required return is of investor. If it is aggressive and active investor he
achieved because he feels that the business can prefers to have a stake and board position as well
operate without his support. This can be done by but if it is a passive investor he will be interested in
the way of selling off part of their stock or by the providing cash alone and getting return on
way of initial public offer, mergers etc., investment on the cash flow.

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Exit is very important (within 3 - 5 years): Most of various other projects as well.
the venture capitalists prefer to exit within 3 to 5 7. Providing networking access to vital
years and turn their investment towards the other new prospective customers: Customer is the king in
business this also helps the venture capitalists to the business; as such venture capitalists with their
make the relative investment easy. huge network base provide the link to the business
ROLE AND IMPORTANCE OF VENTURE enterprises which will help the business
CAPITAL IN THE ECONOMY & enterprises to grow much higher and huge
ENTERPRISES customer base which is strength for any business.
1. Supporting ideas which have high risk and high 8. Assistance in head hunting for senior positions:
reward: This is the major role played by the This is a very important non financial support
venture capitalists. Most of the small and medium provided by the venture capitalists. From the
enterprises today are funded by venture capitalists development of business strategy to execution,
in US and UK and even a developing country like senior people play a very keen role. As such being
India which had a series of impact of VC funding the case appointing the right person for the right
particularly from the beginning of 2000 to 2004 job is very important in this regard venture
and it has also been noted that, even during the capitalists provides easy solutions with their
collapse of market, venture capital funded network base
enterprises performed very well. 9. Sharing vital and relevant information: As it
2. Nurturing innovation and creativity: Most of was said before venture capitalists act as a active
the venture capitalists today are looking for investor by the way of sharing vital information
funding in the innovative sectors such as Bio which is very much essential for the business
technology, Pharmaceuticals, other than only enterprises to run and to compete in the today's
funding towards the manufacturing and service competitive environment which will help the
sectors this has made the economy to be stabilized business enterprises from policy formulation to
over a period of time policy execution.
3. Sustaining a competitive business So, an ideal venture capital investor should have,
environment: In order to boost the competition ü Knowledge of industry, deal structuring and
among the funding companies it is necessary to exits.
upgrade the new technological investments as ü Industry and VC network.
such venture capitalists played pivotal role in
making such things happen. Creating such ü Ability to stay over 2 to 3 rounds.
healthy competitive environment is necessary for ü A s s i s t a n c e w i t h b u s i n e s s s t r a t e g y,
the growth of the economy and certainly VC's have recruitment, fund raising, partnering,
contributed best. customer contacts and exits (IPO, M&A).
4. Supporting the growth of entrepreneurial ü Active board participation.
excellence: Entrepreneurship is the today's talk
(Source: Private financing advisory network).
not only in educational institutions but also a
slogan by the government, hence to promote the CHOOSING AN IDEAL INVESTMENT
entrepreneurship the government has taken PARTNER
necessary steps. Venture capitalist supports such This is the most crucial step for the business enterprises
growth by providing funding to the new, up as the business is new, the options are few for the
coming business enterprises. investment.
5. Providing insights to the evolving business As such selecting the right type of investment partner
strategy: Venture capitalists not only provide who provides both financial and non financial support
funding to the business enterprises but also is very important and difficult as well this should
provides assistance in evolving a business strategy include,
or core competency which is very much essential 1. Industry and “stage of funding” focus:
for the business for survival and growth. Choosing an ideal investment partner merely
6. Developing alliances and partnerships: Venture depends on the stage of funding i.e. seed capital,
backed firms develops alliances and partnerships start up capital, expansion capital and replacement
with the other large scale enterprises; this is the capital. Investment is also driven by the risk and
very important way in which venture capitalists return of the business hence the investor should
helps the enterprises by the way of minimizing the also have adequate knowledge about investment
competitiveness. It also helps the venture funding and round of investment to back in
capitalists to build their network and to fund 2. Referrals from investee Co.'s of the VCs: This is

3


a very good source of getting the investment. In ü Matching the anticipated growth rate: This is
these steps the entrepreneur does lot of ground another important factor the entrepreneur should
work before selecting such investment companies. focus into, as the business will be in the verge of
Referrals from the previous companies saves lot of break even for few years matching anticipated
time for the entrepreneur in performing due growth rate would always helps the firms to make a
diligence and such ground work definitely brand name within short span of time.
contributes for the growth of the business as well ü Matching the amount of capital required and
3. Professional conduct of the partners and their liquidity: The amount of working capital required
knowledge of the industry: Knowledge of the should be determined on the day to day basis in
partners acts as a platform in performing the due order to match the liquidity position of the
diligence by selecting the right type of investors. business
This intern has a effect on the goodwill of the ü Age and Stage development: Entrepreneurs
business and helps to perform better corporate should also have the impact of competition on the
social responsibility. business hence the entrepreneur should know the
4. Cleary defined value additions: Defined values, SWOT of the business this ensures the business to
vision, mission, all these terms add value not only make effective stage by stage development and
to the business but also to the partners and investee growth over a period of time.
companies as well. This makes the business ü Fit with the new stage development: Last but not
partner to predict the required investment with in the least the entrepreneur should also focus into
the required time gap and helps such business to new dimensions in which the business should run
achieve anticipated growth and also he should have a vision of diversifying
business in the long run
CHALLENGES AHEAD
ü Perceived risk: Though it is risk to invest in new CONCLUSION
business, it is suggested that, the investee company Entrepreneurship is certainly a boon for the country
should perform enough due diligence before like India. This has to be properly rooted through an
making such investment as there is always a effective investment, framing the strategies, selecting
perceived risk. the right type of Investee Company. For this, one has to
ü Industry and market risk attractiveness of understand the various investment techniques available
technology: From the entrepreneur's point of for the entrepreneurs in the incubation process. Hence
view, there is always new technology transfer, an attempt is made to bring down some of the important
competition which is being the case, of business in concepts of venture capital and its use for the
short run. It has to focus on getting back the return entrepreneurs.
on investment.

REFERENCES
Ÿ ICFAI Journal for Applied Finance, ICFAI university Press Vol. 16 2010.
Ÿ New Venture Creation, Entrepreneurship for 21st Century by Jeffry A Timmons, Stephen Spinelli, Tata Mc. Graw
Hill Edition.
Ÿ PowerPoint presentation of Venture capital funding by private financing advisory network..
Ÿ How Venture Capital Works, Report by Indian Venture Capital Association, IVCA Report.
Ÿ Sources of Venture Capital by Spencer Stuart NVCA Research Report on Venture Capital.
Ÿ Venture Capital at the Crossroads by W.D Bygrave, J.A Timmons Boston, Harward Business School Publishing
Corporation.
Ÿ Launching and Building Entrepreneurial Companies by Harry A Sapienza and Jeffry A Timmons, conference
proceedings of Babson Entrepreneurship Research Conference.

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Workplace Stress- The Theoretical Study on Reasons and
Coping Methods of Stress
Vaibhav Misra* & Manish Kumar Srivastava**

ABSTRACT
The author emphasized on Organizational Stress in this study. The author focused on the reasons that causes stress
and also focused the measures or methods of coping up with the stress. The study is based on theoretical framework;
therefore the author studied the literatures related to the topic extensively. The author worked on following objectives:
Ÿ To identify the organizational stressors
Ÿ To identify the reason that causes employee stress
Ÿ To find out the suitable methods to cope up with stress

After finding out the objectives or basis of study the author designed the methodology of working. The author found
that the study is based on secondary data, the author collected the secondary data by means of internet, journals and
books. The author considered teachers lectures, author's views, employees' and managers' opinion as primary data for
the study.
The author identified the causes of employee stress and the methods of coping with the stress in this study.

Keywords- Organizational Stress, Reasons of Stress, Employee Stress, Coping Methods of Stress.

INTRODUCTION STRESSORS RECOGNITION
An organization is a social arrangement for the Recognizing the stressors is the key to the stress
controlled performance of collective goals (Buchanan, management technique. There are many recognized
Huczynski, 2005). The organizations operate through stressors as well as the ways to categorize them.
division of labor and allocation of functions, and well Donovan and Kleiner (1994) assert that stress can be
defined hierarchy of authority and responsibility. derived from three sources: physical, mental and
However, each organization is faced with internal and situational. Physical stress can be brought on by such
external pressures which may cause psychological things as overwork, lack of rest and a poor diet. Mental
stress. Stress, is “an adoptive response, mediated by stress can be traced to a person's mental state of mind. It
individual characteristic and psychological processes, involves our hopes, fears and regrets from our day-to-
that is consequence of any external action, situation or day life. Situational stress is derived from our
event that places special physical, psychological interaction with the outside world – our roles as
demands upon a person” (J M Ivancevich and M T husband, father, wife and mother and also our
Matteson, 1980) which may result into high labor interaction with the trappings of modern life such as
turnover and absenteeism rate, low productivity, cars, computers, etc.
reduced performance, ineffectiveness, and inefficiency
levels that also affect the psychological, social and TWO SIDES OF STRESS
physical health of the employees. Stress could be beneficial or detrimental. A beneficial
Operationally defined, stress is the dysfunctional, stress or so-called Eustress (Rojas and Kleiner, 2000),
psycho-physiological response to excessive emotional has the following positive effect:
challenges or inordinate instinctual demands (Juniper, · Proper stress increases the breathing, level of
2003). During stressful conditions the body reacts in adrenaline, production of coagulants in the
special manners to prepare itself for the action that it is blood, heart rate and consequent blood
threatening us, which influences our performance to pressure, in this condition the employee is
different extent. In modern times when our daily life is evoked to cope with the heavy work more
much more competitive than ever before, stress plays efficiently;
an important role in how successful or unsuccessful we
are in our productive work activity, and so the entire · In the appropriate stressful condition the
organization's performance. Because of the role it employee's wisdom could be fully exploited
plays, imperfect stress management has become a new and the employee's response could speed up,
challenge faced by managers in the enterprises so that the working efficiency is enhanced.
nowadays. The detrimental stress or so-called Distress
(Rojas and Kleiner, P103), has the following

* Vaibhav Misra Research Scholar, Department of Management NIMS University, Jaipur, Rajasthan
** Manish Kumar SrivastavaAssistant Professor, Department of Management Shri Ram Swaroop Memorial Group of Professional Colleges
Lucknow

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negative effect: stress as a situation which will force a person to deviate
from normal functioning due to the change (i.e. disrupt
· In over stressful conditions, blood flow is or enhance) in his/her psychological and/or
diverted away from extremities such as the physiological condition, such that the person is forced
hands and the feet, breathing becomes shallow to deviate from normal functioning.
and rapid in an attempt to increase oxygen From the definition that has been identified by
levels in the body, and blood sugar production researchers, we can conclude that it is truly important
which increases and quickens metabolism to for an individual to recognize the stresses that are
release fats and energy into the bloodstream facing by them in their career. Management role of an
(Donovan and Kleiner, P31). All of these organization is one of the aspects that affect work-
physical reactions threaten the employee's related stress among workers (Alexandros-Stamatios
health badly; et. al., 2003).Workers in an organization can face
· Long-lasting and high-level stress could occupational stress through the role stress that the
restrain the employee's brain response and management gave. Role stress means anything about
body motivations, so that the working an organizational role that produces adverse
efficiency is reduced. consequences for the individual (Kahn and Quinn,
1970). Management will have their own role that stands
· The potential cost of stress to organizations, as their related. Role related are concerned with how
through, for example, high turnover, individuals perceive the expectations others have of
absenteeism, low morale, and reduced them and includes role ambiguity and role conflict
productivity has been noted frequently (Alexandros-Stamatios et. al., 2003).
(McHugh and Brennan, 1993) Family and work are inter-related and
Consequently, managers should maintain the stress in a interdependent to the extent that experiences in one
proper extent to maximize the staff's working area affect the quality of life in the other (Sarantakos,
efficiency. 1996). Home-work interface can be known as the
overlap between work and home; the two way
OBJECTIVES OF THIS STUDY relationship involves the source of stress at work
· The author will work on the following affecting home life and vice versa affects of seafaring
objectives: on home life, demands from work at home, no support
from home, absent of stability in home life. It asks
· To identify the organizational stressors about whether home problems are brought to work and
work has a negative impact on home life (Alexandros-
· To identify the reason that causes employee Stamatios G.A et al., 2003). For example, it questions
stress whether the workers have to take work home, or
· To find out the suitable methods to cope up inability to forget about work when the individual is at
with stress. home. Home-work interface is important for the
workers to reduce the level of work-related stress.
RESEARCH METHODOLOGY According to Lasky (1995) demands associated with
Authors had mainly collected secondary data to family and finances can be a major source of 'extra-
prepare this paper. Authors also add personal thinking, organisational' stress that can complicate, or even
teacher's lecture and local people's thinking about the precipitate, work-place stress. Russo & Vitaliano
topic. In this sense, this paper consists of both types of (1995) argued that the occurrence of stressors in the
data i.e. primary and secondary. workplace either immediately following a period of
chronic stress at home, or in conjunction with other
Primary data is author's opinion, teacher's lecture major life stressors, is likely to have a marked impact
and employee's and manager's opinion about the topic. on outcome.
Secondary data is the ideas collected from some Several studies have highlighted the deleterious
specialist's articles which were collected from internet. consequences of high workloads or work overload.
According to Wilkes et al. (1998) work overloads and
LITERATURE REVIEW time constraints were significant contributors to work
Numerous studies found that job stress influences stress among community nurses. Workload stress can
the employee's job satisfaction and their overall be defined as reluctance to come to work and a feeling
performance in their work. Because most of the of constant pressure (i.e. no effort is enough)
organizations now are more demanding for the better accompanied by the general physiological,
job outcomes. In fact, modern times have been called as psychological, and behavioral stress symptoms.
the “age of anxiety and stress” (Coleman, 1976). The Al-Aameri AS. (2003) has mentioned in his studies that
stress itself will be affected by number of stressors. one of the six factors of occupational stress is pressure
Nevertheless, Beehr and Newman (1978) had defined originating from workload. Alexandros-Stamatios

6


G.A. et al. (2003) also argued that “factors intrinsic to sycophant, no reward and incentive system for good
the job” means explore workload, variety of tasks and work and no accountability on corruption and
rates of pay. avoidance of work and untrained man power in the
Rapidly changing global scene is increasing the offices. Absence of proper arrangement of training of
pressure of workforce to perform maximum output and the employees also leads to stress.
enhance competitiveness. Indeed, to perform better to If the above cited malevolencies and prejudices are
their job, there is a requirement for workers to perform prevalent in the manpower of any organization, surely
multiple tasks in the workplace to keep abreast of they will fall prey to tensions, frustrations and
changing technologies (Cascio, 1995; Quick, 1997). A pressures, which are the major causes of stress.
study in UK indicated that the majority of the workers Common signs of stress include increased heart rate,
were unhappy with the current culture where they were high blood pressure, muscle tension, mental depression
required to work extended hours and cope with large and an inability to concentrate. Typical reactions
workloads while simultaneously meeting production include social withdrawals, increased use of tobacco,
targets and deadlines (Townley, 2000). alcohol, or drugs and feelings of helplessness and
Role ambiguity is another aspect that affects job stress depression about the situation. The problem of
in the workplace. According to Beehr et occupational stress has been of great concern to many
al. (1976), Cordes & Dougherty (1993), Cooper industrial organizational psychologists because
(1991), Dyer & Quine (1998) and Ursprung (1986) role researches indicate that if undue stress is imposed on
ambiguity exists when an individual lacks information employees, it will affect the job performance and their
about the requirements of his or her role, how those role psycho-somatic health that is, physical and mental
requirements are to be met, and the evaluative health as well. The industrial/organizational
procedures available to ensure that the role is being psychologists focused their attention on the causes and
performed successfully. Jackson & Schuler (1985) and effects of stress in the work place for two reasons. First,
Muchinsky (1997) studies found role ambiguity to lead there is a general awareness that stress-related diseases
to such negative outcomes as reduces confidence, a are wide-spread, and that more people are disabled
sense of hopelessness, anxiety, and depression. today as a result of stress than at any other time in
history. Secondly, stress on the job is costly and is
ENVIRONMENTAL FACTORS CAUSING
reflected in a form of lower productivity and poor
STRES
performance in the organization.
Senvironmental factors which may cause
stress can be categorized into: STRESS MANAGEMENT METHODS
Ÿ Individual level Then how to control the stress of the employees
Ÿ Group level under an optimistic extent? A great number of methods
Ÿ Organization level can be found in the existed literatures. For instance,
Ÿ Extra-organizational level Bland (1999) summarized the methods into such types
as the pragmatic, spartan, touch-feely and new age.
The potential stressors in the individual context are
Ivanevich et al. (1990) described three broad categories
job demand, work over load, role conflict, role
of stress management intervention. The first type of
ambiguity, work/family conflict (T. A. Judge and J. A.
intervention focuses on the situation and aims to reduce
Colquitt, 2004), and fear of losing job. Job loss can turn
the stressors present.
into a very stressful event causing decreased
The second and third categories focus on the
psychological and physical well being.
employees, and aim either to change the employee's
Interestingly, sleeplessness or insomnia may also cause
cognitive appraisal of the situation, or to help
stress and strain. Various studies indicate that even to
employees cope more effectively with the
eight hours of sleep significantly contributes towards
consequences of stress by increasing their coping
alertness, restoration of energy, performance, creativity
resources. Based on the existed achievements and the
and critical thinking. Job pay differentials, inequities,
author's own experiences, the author suggests the
ambiguous procedure, unrealistic job description, too
following stress management methods from both the
much of centralization, high degree of specialization,
managers' view and the employees' view.
line –staff conflict, over crowding, safety hazards, poor
communication system, unfair control system, ŸMETHODS FROM THE MANAGERS' VIEW
inadequate information, inappropriate system of · To adjust the conception towards stress at
promotion, posting and transferring of their workplace
employees, poor intra-and-interpersonal relation of the The first task of employees who want to
employees, lack of coordination and cooperation manage the stress better is learning how to
among the employees, favoritism, nepotism, lack of adjust their emotion in unchangeable working
accountability, absence of justice, authority used for condition and environment. (Bland, P45).
personal benefit, vested interest and violation of merit. The unnecessary worry about stress may
In such environments majority of the people become become a new stressor on the contrary.

7


However, even in a healthily developing physiologically and psychologically. The
company, every employee would feel stress. physiological techniques include breathing,
What the employees have to do is to keep the meditation, exercising, massaging, etc; and
stress in a beneficial extent and transform it
into driving forces. the psychological techniques include
· To enhance time management imagining sitting in a comfortable place,
Employees that allocate their time in an looking at life differently and learning to relax
orderly way can accomplish more tasks and and enjoy it, setting appropriate goals for you
feel less stress than those in a chaotic way, in and so on.
the same time. Therefore, understanding and
applying the principles of time management CONCLUSION
can help people to cope with the stress at After reviewing the literatures on the study the
work. The principles of time management are author concluded that stress is one of the most
as follows: important factors in increasing or decreasing human
· Listing up the things to be done in capacity of working. The author studied about the
each day; various causes such as individual level cause, group
· Arranging these things in order level cause, organizational level cause and extra
according to their importance and organizational level causes which are responsible for
emergency; generating the stress. The author also focused on the
· Arranging the agenda based on the various measures through which employees can cope
order; up with the stress. These methods of stress coping are
· Clarifying the regular pattern of your divided into two ways- the first one is based on
physiology cycle and to implement managers' views and the second one is based on
the most important thing when you employee's view.
are most efficient and clear-headed. The author also discussed about the outcome
· To try variable techniques to alleviate the of stress that is, till what extent the person can be
stress affected from stress. The author suggests manager to
There are many techniques employees would consider the reason of stress and also use different
methods to cope their subordinates from stress.
like to apply to alleviate the stress

REFERENCES
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pp.1183-1187.
· Alexandros-Stamatios G. A., Matilyn J.D., and Cary L.C., 2003. “Occupational Stress, Job satisfaction, and
health state in male and female junior hospital doctors in Greece”, Journal of Managerial Psychology, 18(6), pp.
592-621.
· Beehr, T.A. & Newman, J.E.,1978. “Job Stress, Employee Health and Organizational Effectiveness: A Facet
Analysis, Model and Literature Review”, Personnel Psychology, 31, pp.665-669.
· Beehr, T.A., Walsh, J.T., & Taber, T.D. 1976. “Perceived situational moderators of the relationship between
subjective role ambiguity and role strain', Journal of Applied Psychology, 61, pp.35-40.
· Bland, M., 1999, “A new approach to management of stress”, Industrial and Commercial Training, Volume 31,
Number 2, pp. 44–48
· Cascio, W.F., 1995. “Wither industrial and organizational psychology in a Changing world”? American
Psychologist, 50, pp.928-939.
· Coleman J.C. 1976. Abnormal Psychology and Modern Life (Indian reprint), Taraporewalla, Bombay.
· Cooper, C.L., 1991. Stress in organizations. In M. Smith (Ed.). Analysing Organisational
· Behaviour. London: MacMillan.
· Cordes, C.L., and Dougherty, T.W. 1993. “A review and integration of research on job
· burnout”, Academy of Management Review, 18, pp.621-656.
· Donovan, S. B. and Kleiner, B. H., 1994, “Effective Stress Management”, Managerial Auditing Journal, Vol. 9,
No. 6, 1994, pp. 31-34
· Dyer, S., & Quine, L. 1998. “Predictors of job satisfaction and burnout among the direct care staff of a
community learning disability service”, Journal of Applied Research in Intellectual Disabilities, 11 (4), pp.320-
332.
· Huczynski B. 2005 Organizational Behavior: An Introductory Text, London: Prentice Hall.

8


· Ivancevich J. M. and Matteson M. T. 1980. stress and work: A Managerial Perspective (Glenview, IL: Scott,
Foresman,), pp. 8-9.
· Ivanevich, J.M., Matteson, M.T., Freedman, S.M. and Philips, J.S., 1990, “Worksite Stress Management
Interventions”, American Psychologist, Vol. 45 No. 2, pp. 252-61
· Jackson, S.E., & Schuler, R.S. 1985. “A meta-analysis and conceptual critique of research on role ambiguity
and role conflict in work settings”, Organisational Behavior and Human Decision Processes, 36, pp.16-78.
· Judge T. A. and Colquitt J. A. 2004. 'organizational justice and stress: the mediating role of work-family
conflict'. Journal of applied psychology. pp 395-404
· Juniper, D., 2003, “Leisure counseling in stress management”, Work Study, Vol. 52, No.1, pp7-12
· Kahn, R.L., & Quinn, R.P. 1970. Role stress: A framework for analysis, In A. McLean (Ed.), Occupational
mental health, New York: Wiley.
· Lasky, R.G, 1995. Occupational stress: a disability management perspective. In D.E. Shrey & M. Lacerete
(Eds.). Principles and Practices of Disability Management in Industry, pp.370-409.
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Employee Counseling Today, Vol. 5 No. 1, pp. 16-21
· Muchinsky, P. 1997. Psychology applied to work: An introduction to industrial and organizational psychology
(5th Ed.). Pacific Grove, CA: Brookes/Cole Publishers.
· Quick, J.C. 1999. “Occupational health psychology: The convergence of health and clinical psychology with
public health preventive medicine in an organizational context”, Professional Psychology: Research and
Practice, 30(2), pp.123-128.
· Rojas, V. M. and Kleiner, B. H., 2000 “The Art and Science of Effective Stress Management”, Management
Research News, Volume 23 Number 7/8.
· Russo, J., & Vitaliano, P. 1995. “Life events as correlates of burden in spouse caregivers of persons with
Alzheimers disease”, Experimental Ageing Research, 21, pp.273-294.
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· Sutherland, V. J. and Cooper, C. L., 1997, 1999, Strategic Stress Management, Chinese version, translated by
Xu hai-ou, Economics & Management Press, Li yuan, China People's University Press.
· Townley, G. 2000. “Long hours culture causing economy to suffer”, Management Accounting, 78 (6), pp.3-5.
· Ursprung, A.W. 1986. “Incidence and correlates of burnout in residential service settings”, Rehabilitation
Counselling Bulletin, 29, pp.225-239.
Ÿ Wilkes, L., Beale, B., Hall, e., Rees, E., watts, B., Denne, C. 1998. “Community nurses' descriptions of stress
when caring in the home”, International Journal of Palliative Nursing, 4 (1).

9


A Comparative Study of Registered & Foreign Venture capital Investment
with special reference to BT Sector in India
Mr. G Srinivasa* & Sir M Visvesvaraya**
ABSTRACT
Investment plays a key role in setting up of the business, initial investment has grabbed more concern of
promoters today as there are different funding options for setting up of the business. It is the selection of the type of
investment which plays a key role in return and smooths functioning of the business. Promoters reluctance for the
new investment has become one of the stumbling block as far as the risky investments are concerned hence, to
address this issue ,the government has also taken adequate measures to promote the small and medium enterprises,
it is needless to say that there is a gradual improvement in the flow of investment in the above sectors in recent years
because of the various factors such as Growth opportunity, Cost of capital, risk and return aspects

INTRODUCTION OBJECTIVES
Venture capitalists today are focusing on the 1. To know the range and amount of
emerging sectors which can get the maximum returns Investment in terms of different sectors
with the least cost of capital. As the venture capitalists 2. To do a comparative study on the flow of
not only provides the funding but also provides the investments in terms of each sector
sectors for the development in lieu of non financial 3. To analyze Risk and return of both venture
support, this certainly adds value to the investment and capital investment and Foreign venture
makes the business lively . Venture capital today has capital flow in terms of cumulative
flows almost to all sectors of the Indian industries as investment
compared to the decade before. The focus of the 4. To suggest and project the best sector
venture capitalists has taken a different shape by which attracts the above investments in the
finding out not only the different sectors of investment nearby future
but also, the investment of portfolio has taken a METHODOLOGY
different shape in the emerging market conditions. The (1) Ho: - The Range of investment is more in
amount of registered venture capitalists has also Bio technology as far as the other sectors are
increased drastically over the last decade period of time concerned
adding additional input and sector wise input for the H1:- The Range of investment is
development etc., which in turn has this turn has made cumulatively less in Bio Tech as far as the
impact on the promoters as well. As compared to last other sectors is concerned
decade there is improvement in the promoters (2) Ho:- Risk and return of the Foreign venture
contributing for the successful entrepreneurship capital investors are more in terms of
The paper titled “An empirical study on the Cumulative investment as far as the BT
Venture capital investment with special reference to sector is concerned
Bio technology industry in India” talks about the H1:- Risk and return of the foreign venture
emerging trends in the venture capital industry and capital investors are relatively less in terms
flow of investment of venture capital in the recent of Cumulative investment as far as the BT
years. The paper also tries to bring out the sectors wise sector is concerned
investment made by the venture capitalists from the
beginning to the year end and gives the scope for the SOURCES AND TOOLS USED FOR DATA
further investments to be made or possible in the COLLECTION
upcoming years. Risk and return of these investments 1) As the Study is based on the Technical
are also shown with a view to give focus on the Analysis Previous data relating to flow of
upcoming emerging sector where investments can be cumulative investment in terms of both
done. The paper also brings various evidences based venture capital investment and foreign
on which conclusions are drawn. To sum up a venture capital investment is taken together
comparison is drawn in terms of risk and return of the from the compiled report of SEBI
sector wise venture capital funded enterprises in the (submitted by both registered venture
recent years and suitable conclusions are drawn from capital funds and foreign venture capital
the same. investors).

*Mr. G Srinivasa, Faculty, Department of Management Studies
**Sir M Visvesvaraya, Institute of Technology, Bangalore & Research Scholar, Bharathiar University, Coimbatore

10


2) The information so taken is compiled through The information related to different options
tabulation. Percentage analysis is used to available for the entrepreneur has been clearly bought
determine the flow of investment in terms of in the article “Corporate Venture Capital: Seeking
each sectors there by Risk and return is also Innovation and Strategic Growth” by Dheeraj Pandey
calculated by using the statistical tools such as and Thillai Rajan A (2011) The article tries to bring out
Standard Deviation and Variance analysis the effect of venture capital fund on the dot com and
3) Conclusion is drawn on the basis of range of authors has also made a point of comparison between
risk and return obtained by using the above equity fund and venture capital fund in the Indian
mentioned statistical tools and projected flow context. The data analyzed also shows the
of investment and sector is identified attractiveness as well as immatureness of Indian VC
accordingly. industry in compare and contrast with US VC industry
(sector wise). The article emphasizes on the relative
REVIEW OF LITERATURE valuation of venture capitalists and the other options
such as equity fund etc.
The Risk associated with the Venture investment is
clearly quoted in the article “Venture Investing worth Shepherd (2008) “Researchers of Venture
the Effort? A Study of Keiretsu Forum” where the Capitalists' Decision Making, Beware!” working
authors has examined the returns with the Venture paper, 1-8. States that Most of the venture capitalists do
capital investing and study analyzed about the invest on the projects based only on the profitability and
dynamics of angel investment groups. The author here they lack introspection into the policies. The findings
has focused on the angel investing in Silicon Valley and show that venture capitalists lack introspection into
the returns from the investments made by a group, their profitability assessments. However, the findings
Keiretsu Forum, and the processes used by the group to also demonstrate some introspective ability into
obtain those returns. The researchers also feels that probability of survival assessments and most of the
Understanding the risks, returns, and dynamics of research is not based on the value judgment in terms of
Venture investment should encourage greater potential biases and errors associated with self reported
participation in the early stage investment ecosystem da.
and foster economic growth (Morrisette, 2011).

ANALYSIS

Cumulative Investments As on March 31, 2011 (Rs. in Crore)
SL NO Sectors wise economy VCF FVCI Total % on total
1 Information Technology 563 2787 3103 18.14
2 Telecommunications 777 6199 6532 11.89
3 Pharmaceuticals 568 1089 1442 39.38
4 Biotech 228 188 329 69.3
5 Media 584 763 883 66.13
6 Services Sector 902 2157 2327 38.76
7 Industrial projects 875 1451 1672 52.33
8 Real estate 5584 3397 7473 74.7
9 Others 8192 10863 15288 53.58
Total 18273 28894 39051

11


The above tabulated information depicts the total percentage flow of investment in each sector for the month of
March 2011. Out of the total cumulative investment made registered venture capitalists hold maximum percentage with
(69.3) in terms of Bio technology sector. This is the next best sector compared to Media with (66.13)

Cumulative Investments As on June 2011 (Rs. in Crore)

1 Information Technology 538 3367 3362 16
4 Biotech 212 198 323 65.6
5 Media 817 788 1114 73.33
6 Services Sector 1100 1964 2380 46.2
8 Real estate 7943 3152 9590 82.82
9 Others 8454 12341 16686 50.66
Total 21500 30722 43686

12


The above tabulated information depicts the total percentage flow of investment in each sector for the
month of June 2011. From the analysis it is been observed that registered venture capital firms are performing well
in Media (i.e. to next to real estate) as compared to Foreign investment, through there is more flow of cumulative
investment in real estate. Comparatively media has overtaken the biotech in terms of total percentage .This signifies
that media has also attracted a combined leverage which has made both registered venture capitalists and foreign
venture capitalists to invest.

Cumulative investments as on September 2011 ( Rs in Crores)

SL
NO Sectors wise economy VCF FVCI Total % on total
1 IT 529 3026 3324 16
3 pharmaceuticals 538 1050 1411 38.12
4 Biotech 212 146 313 67.7
5 Media 847 801 1166 72.64
6 services sector 1222 1911 2606 46.89
7 industrial projects 1155 1428 1951 59.2
8 Real estate 8180 3151 9828 83.23
9 others 9438 14123 19455 48.5
Total 22977 33102 47843

The above tabulated information depicts the total percentage flow of investment in each sector for the
month of Sept 2011. From the analysis it is been observed that registered venture capital firms are performing
well in Media (i.e. to next to real estate) as compared to Foreign investment, through there is more flow of
cumulative investment in real estate. Comparatively media has overtaken the biotech in terms of total percentage
this signifies that media has still retained combined leverage which has made both registered venture capitalists
and foreign venture capitalists to invest. There is more flow of investment in Bio tech as compared to previous
month.

13


Cumulative Inv estments as on December 2011 (Rs in Crores)

1 IT 533 3016 3319 16.05
4 Biotech 187 140 289 64.7
5 Media 802 701 100 6 79.72
6 Services sector 1215 2039 2677 45.38
8 Real estate 8155 3107 9783 83.35
9 Others 10029 15223 20637 48.59
Total 23023 33241 47859

December 2011. From the analysis it is been observed that registered venture capital firms are performing well in Media
(i.e. to next to real estate) as compared to Foreign investment, through there is more flow of cumulative investment in
real estate .Comparatively media has overtaken the biotech in terms of total percentage this signifies that media has still
retained combined leverage which has made both registered venture capitalists and foreign venture capitalists to invest.
There is more flow of investment in Bio tech as compared to previous month.

14


Cumulative Investments as on March 2012( Rs in Crores)

1 IT 564 3436 3878 14.54
2 Tel ecommunications 1092 7221 7865 13.88
4 Biotech 186 139 288 64.58
5 Media 903 705 1101 82.01
6 Services sector 1168 1903 2493 46.85
8 Real estate 8700 2987 10379 83.82
9 Others 11559 17124 23636 48.9
Total 25576 35593 52688

March 2012. From the analysis it is been observed that the growth trend in terms of registered venture capital firms
related to Media continues (i.e. to next to real estate) as compared to Foreign investment, through there is more flow of
cumulative investment in real estate. Comparatively media has overtaken the biotech in terms of total percentage. This
signifies that media has still retained combined leverage which has made both registered venture capitalists and foreign
venture capitalists to invest, Perhaps the bio tech is remained as a third best in terms of flow of investment.
Cumulative Investments as on June 2012( Rs in crores)
1 IT 554 3475 3961 13.98
4 Biotech 167 141 272 61.39
5 Media 924 718 1119 82.57
6 Services sector 1334 2191 2837 47.02

8 Real estate 9131 2962 10784 84.67
9 Others 11526 18204 24759 46.55
Total 26222 37098 54844

15


June 2012. From the analysis it is been observed that the growth trend in terms of registered venture capital firms related
to Media continues (i.e. to next to real estate) as compared to Foreign investment, through there is more flow of
cumulative investment in real estate. Comparatively media has overtaken the biotech in terms of total percentage this
signifies that media has still retained combined leverage which has made both registered venture capitalists and foreign
venture capitalists to invest. Perhaps the bio tech is remained as a third best in terms of flow of investment

Comparative Risk and return of the Venture capital investments in Total Cumulative Investment
SL Sectors Wise Sep- Dec- Mar- Jun- Grand
NO Economy Mar-11 Jun-11 11 11 12 12 Total SD Variance
1 IT 563 538 529 533 564 554 3281 15.458547 238.96667
2 Telecom 777 858 856 858 1092 1092 5533 135.18346 18274.567
3 Pharma 568 507 538 460 457 464 2994 46.596137 2171.2
4 Biotech 228 212 212 187 186 167 1192 44.858295 503.06667
5 Media 584 817 847 802 903 924 4827 243.56491 14830.967
6 Service sector 902 1100 1222 1215 1168 1334 6941 146.50108 42925.133
7 Industrial projects 875 1071 1155 783 947 1030 5861 271.68928 18453.767

16


The above table shows the Risk and volatility of each sector, through there is more flow of registered venture
capital investment in Services sector (i.e. Next best to “real estate which is not considered because of the Constant
growth potential and returns) followed by Industrial projects, Telecommunications and Media.

Comparative Risk and return of the Foreign venture capital investments in Total Cumulative Investment
SL Sectors Wise Mar- Jun- Sep- Dec- Mar- Jun- Grand
NO Economy 11 11 11 11 12 12 Total SD Variance
1 IT 2787 3367 3026 3016 3436 3475 19107 280.167628 78493.9
2 Telecom 6199 6321 7466 7145 7221 7234 41586 532.137952 283170.8
3 Pharma 1089 1085 1050 985 976 971 6156 55.1942026 3046.4
4 Biotech 188 198 146 140 139 141 952 26.889899 723.066667
5 Media 763 788 801 701 705 718 4476 43.744714 1913.6
6 Service sector 2157 1964 1911 2039 1903 2191 12165 123.886642 15347.9
7 Industrial projects 1451 1504 1428 886 1102 1202 7573 241.833345 58483.3667

The above table projects the flow of investment risk and volatility in terms of Foreign Venture. Capitalists are
concerned that the table gives a different picture with more amount of risk related to telecommunications looking into
the growth potential of the business. The range of risk is also more in terms of IT and Industrial projects; because of the
high volatility of market recurring investment flow of foreign investment is also more.
CONCLUSION the foreign venture capital investment
4. Looking into the risk and return of the
1. The study concludes that the flow of Registered venture capitalists, risk seems to
registered venture capital investment is more be comparatively less as far as the BT is
in Services sector(6941) with a risk of concerned i.e. (44.85) as compared to other
(146.50). The risk in terms of industrial sectors.
projects are more (271.68) with less 5. As far as the Foreign Venture capital
volatility(18453)as compared to services investment is concerned it is been observed
sector(42925). t h a t R i s k i s m o r e i n Te r m s o f
2. The risk in terms of Media is also Telecommunications(532.13)followed by
More(243.56) with the volatility IT(280.16) & Industrial Projects (241.83) BT
being(14830) this can attract further has emerged as a Least Risk Sector with
investment in future because most of the (26.889) and so called less volatile sector with
Venture capitalists prefer to invest in risky variance being(723.079)
projects 6. The positive trend of flow of investment in
3. From the above analysis it is also pointed out terms of Telecommunications(41586) likely
that Range of investment of registered venture to continue in near future also with the risk of
capitalists in Bio tech is relatively more than (532.13) volatility of returns being(283170)

17


7. The flow of Investment as far as the Industrial Venture capital investment is Relatively high
projects are concerned is relatively less as in Telecommunications(532.13)followed by
compared to other sectors (7573) with a risk of IT(280.16) & Industrial Projects (241.83)
(241.83) and volatility of returns hence Alternate Hypothesis i.e. (H1) is
being(58483) this shows that there is more Accepted
scope for investment in the near future 10. To sum up Services sector can attract more
8. From the study it is been observed that amount of Investment and can become one of
services sector is booming with more flow of the Emerging investment sector as far as the
investment, less risk and less volatility of Registered Venture capitalists are concerned,
returns hence as far as the first objective is subsequently as far as foreign venture capital
concerned Null Hypothesis is Rejected investment is concerned there may be a turn of
9. The Overall Risk and return of the Foreign investment towards Industrial projects.

Ÿ REFERENCES
Ÿ “Venture Investing worth the Effort? A Study of Keiretsu Forum” (Morrisette, 2011).
Ÿ “Corporate Venture Capital: Seeking Innovation and Strategic Growth” by Dheeraj Pandey and Thillai Rajan A
(2011).
Ÿ Shepherd (2008) “Researchers of Venture Capitalists' Decision Making, Beware!” working paper, 1-8.
Ÿ Compiled report of SEBI (submitted by both registered venture capital funds and foreign venture capital
investors).
Ÿ Report on trends and investments RBI Bulletin

18


ITC-e chaupal”- A Strategic Agribusiness Approach towards
Strengthening the Market Reach in Rural India
Dr. K.K Agarwal* & Preeti Singh**

ABSTRACT
The direct contribution of the agriculture sector to national economy is reflected by its share in total GDP, its
foreign exchange earnings, and its role in supplying savings and labor to other sectors. However the contribution
has been decline in the last two decades. The traditional market structure of the agriculture leads to exploitation of
the poor and illiterate farmers by the intermediaries. The ITC E-chaupal supply chain model is a strategic
agribusiness approach to free this vulnerable section from the clutches of the intermediaries by making them aware
about the market and other such information necessary for better farming. The success of E-choupal has signaled a
new era in the Indian agro-sector and is a win-win partnership between the farmers and the organization.

INTRODUCTION mobility of people. The mantra for sustainable growth
In the early 19th century, agriculture was a self- of the Indian agrarian economy is the constant
contained industry which meant a farm family integration of skillful and innovative techniques into
producing its own food, fuel, shelter, draft animals, and the entire food production system translating into
performing nearly all operations related to the commercial profits for all stakeholders of the Indian
production, processing, storage and distribution of agri system. The e-Choupal model has been
farm commodities. However agriculture evolved from specifically designed to meet the challenges posed by
self-sufficiency to symbiotic relationship with other the distinct features of Indian agriculture, characterized
segments of the economy specifically allied to by fragmented farms, weak infrastructure and the
manufacturing of production supplies and the involvement of numerous intermediaries, who restrict
processing and distribution of food and fiber products. critical market information from reaching to the
The traditional role of agricultural sector as the engine farmers and ultimately using it for their own benefits.
of growth of the economy was overtaken by the
manufacturing, industrial and services sector. Some of STRATEGIC ORIENTATION
the reasons for decline of the agricultural sector were OF AGRIBUSINESS
the unfavorable process of the agricultural
commodities, increased prices of the farm inputs, Dunne (1999) identifies three basic forces that
shortage of agricultural labor (due to migration to drive change in the agri-business sector
industrial jobs; increased competition for land use; and 1. The globalization of market
the more favorable policies accorded to the industrial 2. The rapid advances in technology
sector that could have made investment in agriculture a 3. The greater involvement of people in what
less attractive alternative.) The traditional market and how to produce.
structure of farming consisted of local, govt mandated
market place called mandi where these farmers having Figure 1: The Forces of Change
small landholdings sold their crops to local traders who
in turn sold it to other buyers. Agriculture being one of
the strongest sectors of the Indian economy, accounts
for 14.6 per cent of the country's gross domestic
product (GDP) in 2009-10, and 10.23 per cent
(provisional) of the total exports. Furthermore, the
sector provided employment to 55 per cent of the work
force
The evolution from agriculture to agribusiness has
brought numerous benefits. These include drudgery for
laborers, the release of workers for non-agricultural
endeavors, a better quality of food and fibers; a greater
variety of products; improved nutrition; and increased

*Dr. K.K Agarwal Professor Faculty of Commerce and Management, MGKVP Varanasi
**Preeti Singh Research Scholar Dept of Commerce, MGKVP Varanasi

19


Source: Dunne and Colins 2001 income for farmers in relation to the other Indians.
Globalization has been substantially successful in
Table 1: Consumption of Diet Diversified across
liberalizing trade in manufacturing goods; progress in
consumer groups
the agribusiness sector has been limited because of the
importance of food and fiber industries to the social
fabric and national security of individual countries.
Very fast development in the fields of biotechnology
and communication, have revolutionized the way food
and fiber products are produced, processed, distributed
and consumed. People have strong influence in the
agribusiness sector as they have dual roles of
consumers and guardians. Changes in the
demographics, incomes and social awareness of people
have also influenced how these products will be
produced and made available to the public. This
awareness has made an impact on the agribusiness
sector through increased regulation of how food and
fiber products are produced Chart 1: Farmer Base
Boehlje et.al (1995) claim that these changes have
a dramatic impact on the management of an
agribusiness firm because they effect the competitive
environment of the firm and influence the way in which
the management of the firm will reorganize its internal
resources to meet these challenges.
THE STATE OF INDIAN FARMERS
The picture of the Indian farmers is not at all
beautiful. They have small landholdings, weak
infrastructure (physical and social), low literacy and
low income and high dependence on nature and
intermediaries which leads to Low productivity – Low
risk taking ability – Low share of consumer spending
and ultimately they are trapped in the vicious cycle of Source: Gulati (IFPRI) using data from
poverty and underdevelopment. Agricultural Census Division, India
ITC-E CHAUPAL
E-choupal is an ITC's strategic initiative which has
outreached more than 1 million farmers in nearly
11,000 villages within five years of its implementation
and still expanding rapidly. Now it has been penetrated
over million farmers with a growing a range of crops;
soybean, coffee, wheat, rice, pulses, shrimp in over
40,000 villages through nearly 6200 kiosks across ten
states, apart from it ITC provides many secondary
Figure 2: Predicament of Indian Farmers
services like:
Source: Yogi Deveshwar 2004 1. Weather forecasting
2. Soil testing services
TRENDS IN AGRIBUSINESS
3. Educating farmers on ways to improve crop
The composition of diets has diversified across quality, scientific farm practices & risk
consumer groups which are induced by sustained management
economic growth and rising per capita incomes, 4. Engaging banks to offer farmers access to
urbanization and globalization (Table 1). The credit, insurance, and other services
production system has responded well with an increase
5. Services related to micro-credit, health and
in supply of the various products despite a
education
predominantly small farmer base (Chart 1). The base
has continuously showed expansion, but the growth of
Agriculture GDP is slower in comparison of aggregate
GDP which has resulted significantly lower per capita

20

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