Thursday, August 09, 2007

What is the meaning of Jugaad - Part 2


This story on IBN about “Jugaar” – rural India’s new hot wheels, makes for interesting reading.

“Jugaar” is a cross-over vehicle made with Kirloskar irrigation pump, Mahindra Jeep tyres, and a steering wheel and moving at a constant speed of 30 km/h. It’s also another example of the common Indian’s vibrant mix of entrepreneurial instinct and make-shift engineering which meets a real consumer need and makes a decent profit for the owner.
Not that this is new. I believe that two of the most fundamental changes in India over the last fifteen years – the cable TV revolution and the ubiquitous PCO - have been driven by thousands of small entrepreneurs scattered across the country.

There is a huge potential for bigger, more organised companies to tap into this. But it calls for a new business model and a lot of patience and energy to manage the vast multitude of people and partnerships. One company that is doing an admirable job of attempting this, I think is Tata Motors. Though Mr. Ratan Tata now feels that they haven’t done enough to reinvent the business processes, they are making brave attempts with their sub-One Lakh Rupee car. Wonder how long it will be before more organizations start to look at this as viable opportunity.

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