30 December 2011

Corporate gurukul: Mentors and proteges

Call them sounding boards, gurus, or advisors. Mentors at the workplace don't just speed up the learning curve; they also help proteges find their way through their careers. Organisations say there is no single strand of mentoring. 

The HR head of an ITeS company in Gurgaon says mentoring has turned out to be the single most significant retention strategy for his company. For industrial company Lafarge, training and mentoring employees is an investment for the future. 

"Skilled and satisfied employees play an important role in the group's long term success," says Camille Miranda Gonsalves, senior vice-president -- corporate affairs and CSR. A couple of years ago, Finnish handset maker Nokia dabbled in reverse mentoring when young turks turned into tech gurus for the senior management. 

Mentors can be buddies or coaches, but they learn as much from their proteges as they teach them. Four mentors and proteges share their experience with Team ET. 

THE WRITING ON THE BIG SCREEN 

/photo.cms?msid=11299482PROTEGE 

Sarthak Seth 
Assistant GM (Marketing), 
Panasonic India 



/photo.cms?msid=11299486MENTOR: 

Manish Sharma 
Director (Sales & Marketing) 

Duration of their association : 3Years 

Lessons Learnt: 

Sharma gained a fresh outlook towards business and new ideas. SETH has received several suggestions and insights. "He is a patient mentor, and that helped me move up the learning curve," he says. 

Challenges: 

Sharma needed to ensure that no grievances or communication problems arose while taking Seth through the training. 

For Seth, the challenge was making Sharma understand his strengths and weaknesses and guide him in the right direction 

Impact on Business & Career: 

Innovative consumer-led marketing campaigns 

Says Seth: "My association with him helped boost my confidence to achieve new goals and explore innovative methods of marketing in today's competitive world." 

Positive factors: Great chemistry and understanding of each other and the business 


A PERSONAL EQUATION 

/photo.cms?msid=11299491MENTOR: 

Janmejay Sinha 
Chairman Asia-Pacific, 
BCG India 



/photo.cms?msid=11299502PROTEGE 

Saurabh Tripathi 
Partner & Director, BCG India 

Duration of their association : 12 years & counting 

Lessons Learnt: 

Sinha learnt that the same style doesn't work for everyone. To some people, he tells tell stories. With others, he is more direct. 

Tripathi learnt a lot, like how to make decisions. "Sinha believes in people. He puts more faith in people he mentors than they have in themselves," he says. 

Challenges: 

Sinha says the biggest challenge is time, especially if a company is growing rapidly. People who have the least time have to do the most mentoring, he says. "As you grow senior, your time is at a premium. Real quality mentorship is increasingly hard to do," he says. 

Tripathi says mentoring is a means of apprenticeship. And knowledge transfer. 

Impact on Business & Careers: 

Mentoring leads to better performance and you make, hopefully, less Type-II errors (where you overlook a deserving person), says Sinha. IT helps to have someone care. Tripathi was once struggling with a tough project, and Sinha simply sat him down one evening to help - without Tripathi even telling him once he had a problem. 

Positive factors: 

Hand-me down: Sinha says people who mentored him during the early days of his career with the Reserve Bank of India, shaped his thinking. "I learnt to enjoy mentoring because I was mentored very well," he says. DIAMONDS FOREVER 

/photo.cms?msid=11299510PROTEGE 

Cecil de Santa Maria 

Vice President (Marketing & Retail Operations), Orra 



/photo.cms?msid=11299519MENTOR: 

Vijay Jain, 
CEO 

Duration of their association : A decade 

Lessons Learnt: 

"Over the years, we've learnt to sit down and thrash out all issues. Also, we recognised the need to build and develop people," says Jain. 

Challenges: 

Cecil had to acquire certain skillsets to face the issue of whether to move people up internally or hire from outside. 

Impact on Business & Career: 

The trust, comfort and understanding between the two has allowed Cecil to focus on the short term while Jain focuses on key strategic issues. 

The business has grown 30-fold, with Orra emerging among the country's largest diamond retailing chains. 

Positive factors: 

Backgrounds: Cecil hails from a family of professionals, while Jain has an entrepreneurial background. 

Shared Vision: Helped them build the brand from scratch 

HELP IS JUST A CALL AWAY 

/photo.cms?msid=11299522MENTOR: 

V Ramnath 

Director, Sales at Nokia India 



/photo.cms?msid=11299524PROTEGE 

Rajeev Chettri 
Retail Operations Manager 

Duration of their association : 9 months 

Lessons Learnt: 

Chettri understood the various segments in the market - from telecom operators and customers to the government - allowing him to mould himself faster. 

Challenges: 

Chettri was new, but Ramnath had spent over five years. It was important that Chettri learnt about Nokia's business and culture 

Impact on Business & Careers: 

Chettri learnt that one does not have to be at the top to become a leader. "It's about how to create the right ecosystem for what you want to achieve," he says. 

Positive factor: 

A Bond: Although the mentoring lasted only a week, the relationship continues. 

Experience: Ramnath had lead Nokia in retail operations some years ago, which helped Chetrri. 

Check out 11 jobs that'll pay you to play at work


Two decades of fierce, but exhausting growth, capped off by four years of nerve-wracking economic uncertainty, has left India Inc tired, drained and stressed out. And without play to refresh, revive and recharge fatigued executives, no amount of extra work is going to raise productivity any higher. The groans need to go away; the smiles need to come back. 

Attention, workaholics. The routine nineto-fiver is passe; The rat race is getting more redefined. Today, if you aren't having fun at your work, then count yourself out of the uber-cool, NextGen club. 

There are jobs that actually pay you to create imaginary worlds, live on the edge or even jump off it. It's a world peopled by car testers, stunt designers and games developers, and a whole lot more. 

From Radio jockey to Auto Designer, here's a list of rocking professions that you could also try out 
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Wine tasting is not just about finding the right texture in a drink. It is also about blending in, meeting new people and getting to know cultures from across the globe.Read More
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Radio means that no matter what, the show must go on. Even if you've had the worst day possible, you have to be a trooper and get on with it. Read more
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Fitness training itself has come a long way from the time men would walk down to the nearest 'Akhara' to acquire bulging biceps. Read More
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Unlike office drones who live depressingly sheltered lives, life is an unending adrenalin rush for action director. Action directors typically start off as stuntmen.Read More
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A car tester is forever living life in the fast lane. He gets to ride the fanciest of Audis, Mercs and Porsches, and the best part is, there are no rules. Read More
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The working hours are flexible and the atmosphere very relaxed. An independent setup gives young staff an unprecedented degree of creative freedom. Read More
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Casting the right person for a role in a movie can lead to confusion. The trick lies in looking at the subject with a psychologist's eye. Read More
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Not everyone gets to write a script for their favourite TV character. The one whose show you never miss. It's even more rare that you get to go out for a movie with them. Read More
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While your peers are looking for some serious internship with MNCs, you can have a blast. The only investment required in organising a party is loads of confidence.Read More
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Developing apps is about making a section of the target audience smarter. It is also challenging and yes, a lot of fun. Read More
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Designers receive as much if not more coverage than the CEOs. The job is not all about money, its also the comfort of being able to wear shorts to work.



Wine Taster: Not just about finding the right texture in a drink but meeting new people & knowing other cultures

See, swirl, smell and sip. Wine tasting has moved beyond this simple 'Four S' rule. Sovna Puri puts her senses to use every day, as a wine taster, to distinguish every variety of wine. "It's like a never-ending story," says the 31-year-old Puri, Head-Tastings and Training, Sula Vineyards, referring to the study and understanding of wine. Eight years ago when Puri left India, after graduating from the Institute of Hotel Management in Dadar, Mumbai, wine-tasting as a career option was almost non-existent. After leaving Mumbai she moved to France for a Masters in Hospitality where she developed an interest in wine. 

Ten years ago there were no certified sommeliers (a waiter or a wine steward in a club in charge of wines) in India. "Today, there are 10 Indian sommeliers in the country," says Gagan Sharma, sommelier and wine educator, Wi-Not Beverage Solutions, a wine consultancy company. Today, Puri is busy hosting wine-tasting parties across the country, organising exhibitions and events to highlight her company's wines and getting invitations from wine producers across the globe like Bordeaux in France, to sample their bottles of Red, White and Rose wines. "You meet foreign wine makers and wine personalities and host dinners for them so there is glamour attached to this profession," says Myles Mayall, a buyer for The Wine Society of India. 

At a wine tasting Puri recently hosted for a client in Thane, she was asked whether white wine could be made from black grapes. Surprisingly, her answer was, yes. The skin of the grape determines the colour of wine, so if the skin of black grapes is peeled off, the juice is colourless. At another wine tasting in Ludhiana, Punjab, a traditionally whiskeydrinking region, the guests did not know about the existence of Rose wine. "Every time I walk into a tasting I don't know what questions to expect and that keeps it exciting," says Puri. After working in France for a while, Puri moved to London and completed a course in WSET (Wine and Spirit Education Trust), in wines while working as the assistant head sommelier in Benares, a Michelin-starred Indian restaurant, for over two years. 

During her tenure there Puri would often taste between 50 and 80 bottles of wine a day. Generally, it is not recommended to taste more than 8-10 wines a day because the palate goes numb. "As a sommelier abroad we never sip the wine. We spit it out at the end of the Four S rule, as drinking it may influence our decision-making process for the next wine," says Puri. What works in this profession according to Puri is a definite passion for wine. "You must absolutely love it and have a palate to distinguish one from another," says Puri. Three years ago she moved back to Mumbai and joined Sula who was looking out for a wine taster and trainer. Her job is to make presentations of the culture and origin of wine and the different varieties available. Her role is instrumental in building awareness and educating people. "Sula's market share has gone from 25% three years ago to 60% today and a large part of that is simply due to the tastings we conduct with Sovna across the country," says Rajeev Samant, founder of Sula Vineyards. Puri also works weekends and late evenings. She doesn't mind it so much. "Every wine tasting is a party and you feel like the star of it," laughs Puri. Her clientele includes eminent bankers and their HNI clients, MNCs and their employees and the urban elite who host wine tastings for their guests. Puri also works with the top restaurants and hotels in the country to train their staff in choosing wines for their menus. 


Puri's tasting invitations have taken her from Jalandhar in Punjab and Jaipur in Rajasthan right up to Darjeeling and Shillong in the North East. "I also get invited by wine producers across the world to sample their wines," says Puri. Such two-three day wine trips include visits to seven-10 different wineries and meeting wine producers. They also get to taste the delectable cuisine paired with the wines, for a holistic experience. For young aspirants interested in wine, there are a few career options available. 

One could either be a sommelier attached to hotels and restaurants, or like Puri, be a wine taster and trainer for a wine company or even a wine consultant. A certified sommelier fresher could start with `20,000 a month and a wine consultant with experience could earn up to `1.5 lakh a month. India is still developing a taste for wine and, according to Mayall of The Wine Society of India, very few people are knowledgeable about the culture of wine so there is a great demand for experienced sommeliers and tasters. "The wine fraternity is a warm and cozy one with the urban elite as its members," says Mayall.


Top 20 large cap & mid cap stocks to buy in 2012


The year begins on a rather gloomy note with the overhang of the European debt crisis, and closer home, a slowing economy, an earnings downgrade, and a government failing to get going. Though these factors are bound to impact the economy and growth, there are a handful of companies that hold out promise. The ET Intelligence Group has shortlisted 10 stocks each from the large cap as well as mid cap categories for 2012. It also tells you why your bets may not be fully misplaced. 

Band of Big Boys You can Place Your Bets On... 

1. ADANI PORT & SPECIAL ECONOMIC ZONE 

While the major ports of the country are operating at near capacity, Mundra Port & Special Economic Zone will be able to handle incremental trade, given its large capacity.

The proximity of MPSEZ to north western states makes it attractive for handling volumes for these states. MPSEZ continued to outperform all major ports in cargo volume with 27% volume growth in total cargo handled compared to 3% growth in total volumes at the major ports in the first half of this financial year. 
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MPSEZ has acquired 50mtpa bulk-handling capacity from Abbot Point port in Australia. The stock trades at a trailing P/E of 23.3 which is justified, given its growth potential.

2. APOLLO HOSPITAL ENTERPRISES (AHEL) 
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Healthcare is one of the sectors to get least affected from the economic slowdown. AHEL is the best contender in this segment having presence in hospitals, pharmacies and insurance. The company owns a chain of 52 hospitals having a total of 8513 beds.

Over the past four fiscals, the company has logged a steady rise in in-patient admissions and average revenue per occupied bed.

Its occupancy rates have remained high above 70% with gradual reduction in the patient's average length of stay in its hospitals. It also has a network of 1,257 pharmacies across India and also runs a health BPO and health insurance service.

3. GODREJ CONSUMER PRODUCTS 
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As raw material prices start cooling off, the FMCG sector is likely to witness improvement in margins over the next year.

While the possibility of a slowdown in demand is a macro concern for the sector, a company like GCPL with presence in emerging markets in Asia, Latin America and Africa, is among the better placed in the sector.

Household and personal care major GCPL, has made numerous EPSaccretive international acquisitions in emerging markets and has an established presence in rural India.

Benefiting from its international portfolio in hair care, personal wash and home care segments, the company aims to be an emerging-market FMCG powerhouse.

4. IDEA CELLULAR 
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A pan-India reach, higher concentration of active users, and a strong brand recall augur well for Idea Cellular during the year which is likely to see a full-fledged roll-out of data based 3G services.

Though the company's near-term financials will be under pressure due to higher interest costs and losses in new telecom circles, it looks well poised over the long-run to take advantage of data-driven growth in the Indian telecom sector.

Idea is fuelling the growth of smartphones by introducing low-cost handsets. The operator enjoys a higher active user base coupled with a firm trend in user additions. This should help the company reap benefits from new services. 


5. LUPIN 
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Lupin is the fifth largest generics company in the US. It has a growing and promising presence in Japan and emerging markets like South Africa.

A pipeline of limited competition drugs and the recent foray into oral contraceptives is likely to be the growth driver for the company' s business in the US. Through its recent acquisition of I'rom Pharma in Japan, the company has forayed into the hospital generics segment.

Lupin has been among the few outperformers in the Indian domestic market with enhanced market shares across therapies. Average growth of over 20% in sales and profits, strong cashflows from operations and low debt make it a classic defensive stock.

6. POWER GRID 
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It has an extremely low-risk business model. With almost a monopoly in the central power transmission business, the company will benefit from the huge demand for transmission lines from the upcoming capacity addition.

It has a strong balance sheet to support its capex plan and a strong execution record. It has a fixed return on equity of 15.5%.

The company has hardly any variable cost post the capex, except maintenance cost. It has an operating margin at a high 90%. All this gives a strong future earnings visibility and hence the stock has outperformed the broader market in the last one year and the outlook continues to remain positive.

7. PNB 
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Punjab National Bank is one of the fastest growing public sector banks. Second only to State Bank of India, it has a competitive funding cost structure, a huge network in North India and strong capitalisation levels.

It has shown a sharp improvement in asset quality and has invested heavily in technology upgradation giving it an advantage over its peers in the public sector.

Despite a relatively high increase in restructured loans, this is helping it to decrease its exposure to the troubled power sector. Given all these factors, the bank is expected to maintain NIMs higher than its peers.

8. SHRIRAM TRANSPORT FINANCE 
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Shriram Transport Finance is the largest commercial vehicle financer in the country with a network of 488 branches. It has a presence in financing pre-owned trucks where it garners one fourth of the market.

Despite the concerns in the lending business, Shriram Transport Finance still lends to small truck owners which are less leveraged as compared with companies. This lessens the chances of borrower defaults compared with other NBFCs.

The company's recent performance has been under pressure on account of higher provision for nonperforming assets. But this is not expected to persist over the longer-term.

9. SUN TV NETWORK 
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Sun TV Network would continue its growth momentum in revenues in 2012, thanks to its robust business model. The company's domination in the southern broadcast industry helps it secure over 71% of operating profit margin consistently. Sun TV Network enjoys discretionary powers over its content, giving it a distinct edge over other media companies.

Recently, the company launched highdefinition version of its four channels. With these channels the company has 25 channels.

These channels would be offered at a price higher than plain vanilla on its DTH services. Company's alleged involvement in the 2G scam may not have an impact on its earnings. 


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Titan operates in the jewellery segment through its retail brand Tanishq which contributes almost three-fourths to its total net sales.

Despite an unfavourable macro environment, it has aggressive expansion plans. And this will not require much capital expenditure as the company mainly operates on an asset-light franchisee model.

Despite degrowth in the jewellery market, the company's volume has increased in the last few quarters. It has a 5% market share in the jewellery market which will continue to grow with the space addition and with a strong brand equity allowing the company to grow at a rapid pace.

...And a Middle Order that Promises to Deliver 

11. ALLCARGO 
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Over the next year, the high-margin container freight stations (CFS) business would be the main driver for AllCargo Global Logistics' (Allcargo) earnings. It is doubling its CFS capacity at JNPT by March 2012.

AllCargo books space for container volumes in shipping firms for its multimodal transport operations (MTO). During a downturn there is usually a tendency to shift to less-thancontainer-load to reduce cost.

This augurs well for the company as Europe is now facing a slowdown. On a trailing 12-month basis, AllCargo's stock is trading at a price-to-earnings (P/E) valuation of 8 which is one of the lowest among its peers.

12. COX & KINGS 
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In 2012, Cox & Kings India will begin to reap the benefits of its acquisition of UK's Holidaybreak, which offers travel facilities to local students. The acquisition provides revenues round the year as vacation for students in the UK does not coincide with school breaks in India, thereby supporting the topline.

The company can tap into the large base of students in India, Japan, Australia, New Zealand and China for their educational travels to various destinations in Europe.

Holidaybreak is present in over 150 destinations where Cox & Kings India operates. It gives an opportunity for both companies to cross-sell services. This should boost sales for Cox & Kings India.

13. CRISIL 
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The pioneer in credit ratings in India, CRISIL still controls the largest market share in the country with the largest number of rated entities and products.

Global ratings agency Standard and Poor's holds a majority stake in the company. After buying back shares in January 2011, the promoters recently made another offer to buy back shares.

This is a reflection of the confidence that they have in the company. The slowdown in the economy and a marked fall in debt-raising by local firms is a concern as revenues are bound to be hit but the stock may continue to do well because its core business of ratings will flourish despite a slowdown.

14. ENGINEERS INDIA 
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Despite the current slump, the company is better placed than most others in the capital goods sector. EIL has a strong balance sheet - zero debt, cash surplus, improving debtor's turnover ratio and an impressive RoCE. It also has a healthy order backlog giving it revenue visibility for the next two years.

However, while this ensures top line growth, operating margins may continue to be under pressure, at least for another year, due to pricing pressures in the turnkey project business.

But, EIL's stock has already lost 40% of its value over the past one year. EIL's strong fundamentals and current valuations make it a preferred buy


15. GUJARAT STATE PETRONET 
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The performance of Gujarat State Petronet was hardly a stand-out one in 2011 due to stagnating gas volumes and uncertainty relating to its tariffs.

However, it enjoys a strong cash-generating business model that will earn greater currency once availability of natural gas improves in the country. The strong profit growth in 2011 was mainly owing to the changes in depreciation policy.

This apart from the correction in its stock price has reduced its price-to-earnings valuation to 8.3 - the lowest among its peers. In 2012, the company is expected to report some growth in its gas volumes, thereby boosting investor sentiment.

16. HAVELLS INDIA 
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Havells India has performed quite well in the first half of the current fiscal. This is expected to continue in the coming quarters as well.

Its major products - switch gears, cables and wires, lightings and fixtures - are growing at the rate of over 20%, and will likely show decent growth in the coming quarters.

Its European subsidiary, Sylvannia which accounts for nearly half of the company's revenues, is profitable now. Sylvania's revenues will remain stable in the coming quarters, but profitability will be on the upswing as more of its manufacturing will be outsourced.

17. KEMROCK INDUSTRIES 
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The increasing demand for Kemrock's fibrereinforced plastics (FRP) and its successful foray into carbon fibre will prove to be the key growth drivers in 2012.

In FY12, it plans to double its current carbon fibre capacity to 800 tonnes. It also acquired 80% in the Italy-based Top Glass, which manufactures composite profiles.

It also tied up with the Netherlands-based DSM Composite Resins AG for production of specialty composite resins in India. All these initiatives will support the company's growth going ahead. The company's stock price has been steady during the recent market volatility, which reflects its strength.

18. MAHINDRA HOLIDAYS & RESORTS 
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The company enjoys a wide reach and a growing base of subscribers with 36 retail outlets, 126 franchisees and 19 branch offices. In the past five years, its vacation ownerships have risen more than three times to over one lakh.

The company's strategy to explore the unknown but scenic destinations has worked well. Recently, the company added Osian, Navalgarh and Swamimalai (in Rajasthan and Tamil Nadu, respectively) to its portfolio of 49 locations in 14 states.

The holiday resort firm has an occupancy level of over 80% which is higher than most budget hotels. This business model will continue to drive its revenues even in 2012.

19. PAGE INDUSTRIES 

20. V-GUARD INDS 
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The company has a strong presence in the south for its pumps, voltage stabilisers and wires. Now, it is diversifying into water heaters, electric fans and inverters.

It is looking to expand geographically. It is aggressively marketing its products in nonsouthern markets and has increased its ad spend in the past few quarters, the impact of which will be reflected in the coming quarters.

The company has a very strong balance sheet, a wide range of products and a strong hold over its existing market, giving it an edge over its rivals. With the recent correction in its stock price, V-Guard looks attractive as a long-term investment.

(Markets data as on December 26, 2011)
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Page Industries manufactures and sells inner wear under the brand Jockey. In 2011, the company got a licence extension to manufacture and distribute the Jockey brand till 2030.

Brand Jockey commands premium pricing among inner wear brands for men. This extension of licence for close to 20 years indicates strong revenue visibility for the company.

Page Industries has a market share of 24% in the men's category and 12% in the women's inner wear market. A formidable presence in the premium category, where the average market price for each item is anything between Rs 100 and Rs 150, will be an advantage for Page Industries.