Friday, March 17, 2006
Mill-a-Mall-a-Maal
This topic may sound boring to many of you, but I have been thinking about it since yesterday night after watching a TV show on it.
Long ago:
One upon a time Mumbai was considered a hub for textile mills in India followed by Surat and other places. That time people who owned the mills made a fortune out of it, but as we know life revolves around a circle, so is any business. The time came when the textile mill business doomed here in Mumbai due to reasons unknown to me. That left 30,000 people unemployed. I like to believe that there after some disappointed souls went back to their native places and have started farming, some smart asses have joined political parties and some are taxis and auto rickshaws driver now. It’s really sad to hear stories of some really poor families who are still suffering from financial crises because the person working with mill could not find another job.
It is said that out of those 30,000 people, 16,000 have been paid their remuneration, leaving 14,000 people begging for their money till date. The mill owners are ready to pay money to the remaining lot, but for that they will have to shell out close to Rs. 200 crore (2 billion!!!) from their pocket, and they claim that due to heavy losses they had suffered during declination period, they are left with very little money to do justice to 14,000 not so lucky people.
During those days, every mill used to have their own union, whose job was to fight for mill workers rights (and take their cut while settling down certain issues with the mill management). Every union consisted of some 10 – 15 good and smart bargainers, headed by a person who proved himself to be the smartest of the lot.
Not so long ago:
Anyways, getting back to the story, after a few harsh decisions taken by whom so ever to shut down mill operations, textile mills land was of no use for several years.
One day one smart ass (read: owner of former Phoenix mills, and now High Street Phoenix), gets up and says I want to build malls and multiplexes and what not to make this a “happening place”. I don’t know how he did that, but if you see, right now it is the most buzzing place across Mumbai. As of now, you have 3 huge malls, 1 super market, good knows how many restaurants, quite a few multinational corporate offices, couple of places show casing cutting edge furniture ….. the list is long. Now they are building a tower on the parking lot, which itself was as big as one foot ball field. Now in the tower they gona have first 3 levels for parking, 4th and 5th , shops for branded products and from 6th onwards a 5 star hotel!!!
Looking at this success, now every mill owner wants to follow the trend. From what I hear, there are places building 22 new 5 star hotels and god knows how many malls!
Fair enough, anyways we Indians are more of followers and less of leaders. (I hate to say this…)
Now:
After god knows how many months, finally the Supreme Court has given a go ahead to mill owners to trade off their own land. Now the problem is, we have a group of people who were against this decision saying, “We, Mumbai-ites need open space in the city, so all these mills should give away a part of their land to the government to build parks. Or they should do it themselves for the betterment of the city.” (Apart from paying those 14,000 poor people). They also suggested building housing colonies for poor and middle class people on the empty land (poor – middle class does not include 14,000).
If you think from your heart, this sounds absolutely perfect. But on second thoughts, you realize that these suggestions are absolutely ridiculous. For example if I buy a car, and tomorrow someone comes up and says, “You have a car, so you not only give me ride every day, but also pay me X amount for giving you company.”
Nonsense isn’t it? I worked hard, my family supported me all the way, I don’t even know you and you want to make a fool of me!
Anti-mill space trading people say that;
1.) Mumbai needs open space
2.) Mumbai needs wider roads
3.) Mumbai needs gardens
4.) …
I say, yes, Mumbai needs open space, wider roads, gardens, parks etc etc… But that by no way means mill owners should give away 60% of their land in charity. Here is a calculation,
Free mall land area: approx. 400 acres,
Rate per acre: approx. Rs. 300 Crore (3 billion))
Total: 400 * 30,000,000,000 = m bad at math
60% of “m bad at math” goes in charity much before the 40% that will go to mill owners!!! Am sure that not fair to the mill owners.
Firstly if these mill owners do not give away anything to the society, and make money in god knows what unit, eventually they will have to do charity to save on tax if not for the sake of humanity. (Like everyone does, from Bill gates to tata to Birla to Ambani).
On the other hand, assume 60% of the land is donated to build residential building for poor and middle class people. Will they be able to afford the monthly maintenance? Today in Mumbai, minimum monthly maintenance per Sq. Ft. is Rs. 1 – Rs. 1.5. Assume the poor have been given free flat, and middle class at low cost, but the question is will they be able to maintain their houses shelling out minimum of 500 – 600 rupees a month?
Damn.. third page of this post. Anyways, what am saying is, am not taking the mill owners side, am not against anti-mill land trading group, I do sympathize with the poor .But for god sake; poor people are poor, not crippled. Please do not make it a habit for them to be a pile on all their life. Please don’t try and be their bosses, give them their own space to make it big in their life. Show them a way, don’t show them the destination. I am not saying mill owners should build only malls, 5 star – 7 star hotels or multiplexes. I am not sure if its tuff or not tuff, but if Dhiru bhai Ambani can do it, if Owner of Bharti Group, Mr. Mittal can do it, why can’t others. Agreed to a certain extend it’s a game of luck, but at least give them an opportunity to give it a shot!
But on the second thought, for poor people or even for that matter for people like me, starting from scratch especially when your age is not on your side is extremely difficult.
Don’t know … it’s just a thought that has been playing in my mind…..
Long ago:
One upon a time Mumbai was considered a hub for textile mills in India followed by Surat and other places. That time people who owned the mills made a fortune out of it, but as we know life revolves around a circle, so is any business. The time came when the textile mill business doomed here in Mumbai due to reasons unknown to me. That left 30,000 people unemployed. I like to believe that there after some disappointed souls went back to their native places and have started farming, some smart asses have joined political parties and some are taxis and auto rickshaws driver now. It’s really sad to hear stories of some really poor families who are still suffering from financial crises because the person working with mill could not find another job.
It is said that out of those 30,000 people, 16,000 have been paid their remuneration, leaving 14,000 people begging for their money till date. The mill owners are ready to pay money to the remaining lot, but for that they will have to shell out close to Rs. 200 crore (2 billion!!!) from their pocket, and they claim that due to heavy losses they had suffered during declination period, they are left with very little money to do justice to 14,000 not so lucky people.
During those days, every mill used to have their own union, whose job was to fight for mill workers rights (and take their cut while settling down certain issues with the mill management). Every union consisted of some 10 – 15 good and smart bargainers, headed by a person who proved himself to be the smartest of the lot.
Not so long ago:
Anyways, getting back to the story, after a few harsh decisions taken by whom so ever to shut down mill operations, textile mills land was of no use for several years.
One day one smart ass (read: owner of former Phoenix mills, and now High Street Phoenix), gets up and says I want to build malls and multiplexes and what not to make this a “happening place”. I don’t know how he did that, but if you see, right now it is the most buzzing place across Mumbai. As of now, you have 3 huge malls, 1 super market, good knows how many restaurants, quite a few multinational corporate offices, couple of places show casing cutting edge furniture ….. the list is long. Now they are building a tower on the parking lot, which itself was as big as one foot ball field. Now in the tower they gona have first 3 levels for parking, 4th and 5th , shops for branded products and from 6th onwards a 5 star hotel!!!
Looking at this success, now every mill owner wants to follow the trend. From what I hear, there are places building 22 new 5 star hotels and god knows how many malls!
Fair enough, anyways we Indians are more of followers and less of leaders. (I hate to say this…)
Now:
After god knows how many months, finally the Supreme Court has given a go ahead to mill owners to trade off their own land. Now the problem is, we have a group of people who were against this decision saying, “We, Mumbai-ites need open space in the city, so all these mills should give away a part of their land to the government to build parks. Or they should do it themselves for the betterment of the city.” (Apart from paying those 14,000 poor people). They also suggested building housing colonies for poor and middle class people on the empty land (poor – middle class does not include 14,000).
If you think from your heart, this sounds absolutely perfect. But on second thoughts, you realize that these suggestions are absolutely ridiculous. For example if I buy a car, and tomorrow someone comes up and says, “You have a car, so you not only give me ride every day, but also pay me X amount for giving you company.”
Nonsense isn’t it? I worked hard, my family supported me all the way, I don’t even know you and you want to make a fool of me!
Anti-mill space trading people say that;
1.) Mumbai needs open space
2.) Mumbai needs wider roads
3.) Mumbai needs gardens
4.) …
I say, yes, Mumbai needs open space, wider roads, gardens, parks etc etc… But that by no way means mill owners should give away 60% of their land in charity. Here is a calculation,
Free mall land area: approx. 400 acres,
Rate per acre: approx. Rs. 300 Crore (3 billion))
Total: 400 * 30,000,000,000 = m bad at math
60% of “m bad at math” goes in charity much before the 40% that will go to mill owners!!! Am sure that not fair to the mill owners.
Firstly if these mill owners do not give away anything to the society, and make money in god knows what unit, eventually they will have to do charity to save on tax if not for the sake of humanity. (Like everyone does, from Bill gates to tata to Birla to Ambani).
On the other hand, assume 60% of the land is donated to build residential building for poor and middle class people. Will they be able to afford the monthly maintenance? Today in Mumbai, minimum monthly maintenance per Sq. Ft. is Rs. 1 – Rs. 1.5. Assume the poor have been given free flat, and middle class at low cost, but the question is will they be able to maintain their houses shelling out minimum of 500 – 600 rupees a month?
Damn.. third page of this post. Anyways, what am saying is, am not taking the mill owners side, am not against anti-mill land trading group, I do sympathize with the poor .But for god sake; poor people are poor, not crippled. Please do not make it a habit for them to be a pile on all their life. Please don’t try and be their bosses, give them their own space to make it big in their life. Show them a way, don’t show them the destination. I am not saying mill owners should build only malls, 5 star – 7 star hotels or multiplexes. I am not sure if its tuff or not tuff, but if Dhiru bhai Ambani can do it, if Owner of Bharti Group, Mr. Mittal can do it, why can’t others. Agreed to a certain extend it’s a game of luck, but at least give them an opportunity to give it a shot!
But on the second thought, for poor people or even for that matter for people like me, starting from scratch especially when your age is not on your side is extremely difficult.
Don’t know … it’s just a thought that has been playing in my mind…..
# posted by memphis : 2:24 PM
Comments:
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good one...but when u do your calculations remember 2 simple conversions:
* 1 million = 10 lakhs
* 1 billion = 100 crores
* 1 million = 10 lakhs
* 1 billion = 100 crores
# posted by 
: 3/17/2006 8:36 PM
: 3/17/2006 8:36 PM
if u know who this is...how is this a case of hidden identity, dudoo!!
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# posted by : 3/22/2006 1:07 PM
: 3/22/2006 1:07 PM<< Home
