Executive Summary
Executive Summary
Executive Summary
EXECUTIVE SUMMARY
TATA DOCOMO is Tata Teleservices Limited's TTSL telecom service on the GSM platform arising out of the Tata Group's strategic alliance with Japanese telecom major NTT DOCOMO in November 2008. Tata Teleservices has received a pan-India license to operate GSM telecom services, under the brand TATA DOCOMO and has also been allotted spectrum in 18 telecom Circles. TTSL and has already rolled out its services in various circles. India is the fastest growing major mobile market in the world .Building on leading position in the market, TTSL. Aims to capitalize on the growth potential to significantly increase the subscriber base and market share. The telecom sector is increasing day by day and the competition is getting more and tougher. Initially Tata service was providing CDMA and after tie up with DOCOMO they come up in GSM as TATA DOCOMO. The project is about study on Tata Docomos popularity among Indian mobile users. As the title suggest, how the Tata Docomo is popularised among indian mobile users. The primary objective of this research project is to find the acceptability and demand for TATA DOCOMO and to find out the reasons why users prefer any particular technology. The second objective was to study the unique features and services offered by TATA DOCOMO.
INTRODUCTION
To study the schemes and services provided by TATA DOCOMO. To study the various tariffs charged by TATA DOCOMO. To study the unique features and services offered by TATA DOCOMO. To study the awareness of TATA DOCOMO among Indian people. To study the SWOT analysis of TATA DOCOMO. To know the impact of promotional activities on the purchasing behavior of the buyer. To study the acceptability and demand for the TATA DOCOMO. To study the Customer satisfaction level regarding the services provided by TATA DOCOMO.
RESEARCH METHODLOGY
PRIMARY DATA:
Data collected by visiting Tata Docomo Retail Shop.
SECONDARY DATA: Data Collected from Internet. Information received from various pamphlets, brochures and journals of Docomo. Tata
Tata Teleservices Limited now also has a presence in the GSM space, through its joint venture with NTT DOCOMO of Japan, and offers differentiated products and services under the TATA DOCOMO brand name. TATA DOCOMO arises out of the TATA GROUPS strategic alliance with Japanese telecom major NTT DOCOMO in November 2008. TATA DOCOMO has received a pan-India license to operate GSM telecom services and has also been allotted spectrum in 18 telecom Circles. The company has rolled out GSM services in 14 of Indias 22 telecom Circles in a quick span of under six months. The company plans to launch pan-India operations by the end of FY 2009-10. TATA DOCOMO marks a significant milestone in the Indian telecom landscape, and has already redefined the very face of telecoms in India, being the first to pioneer the per- second tariff option-part of its Pay for What You Use pricing paradigm. Tokyo-based NTT DOCOMO is one of the worlds leading mobile operators-in the Japanese market, the company is the clear market leader, used by over 50% of the countrys mobile phone users.
LITERATURE REVIEW
COMPANY OVERVIEW
As a partnership of two pioneering brands, TATA DOCOMO promises to deliver relevant new applications and services that will make everyday life simpler and more enjoyable for the consumer. In a market that is cluttered with many operators and confusing options, we will offer simplicity to consumers by being the country's most transparent, innovative and liberating telecom brand." - Deepak Gulati, President, GSM Business, Tata Teleservices Limited, in June 2009. On June 10, 2009, Tata Teleservices Limited (Tata Teleservices), a CDMA mobile service provider in India, and NTT DoCoMo Inc. (DoCoMo), a Japan-based mobile phone operator, unveiled a new brand identity for their GSM service - Tata DoCoMo. Commenting on the new brand identity, Anil Sardana (Sardana), Managing Director of Tata Teleservices said, "TATA DOCOMO is a natural choice of GSM brand-name for us, since it will provide customers a dual advantage-trusted service from the House of Tata, riding on the technological superiority of NTT DOCOMO." DoCoMo was founded in August 1991 as a subsidiary of Nippon Telegraph and Telephone Corporation (NTT). To reduce its monopoly in the telecom sector, NTT's mobile communication network was spun-off in 1992 to form DoCoMo. The new division targeted the mobile cellular service market in Japan. As of March 2008, DoCoMo had a customer base of 53 million users covering more than half of Japan's cellular market. However, since 2006, the company was losing its market share due to aggressive strategies adopted by low cost competitors, primarily SoftBank Mobile Corp. that sparked a price war in the market. When mobile number portability (MNP) was introduced in Japan in 2006, DoCoMo was adversely affected with a
8 drop of the company's market share to 49.7% DoCoMo was also unable to compete with its rivals in terms of new customer acquisitions.
Tata Teleservices was incorporated in 1996 as the telecom division of the Tata Group lead by Tata Sons. It provided CDMA service in India under the brand 'Tata Indicom'. Its array of telephony services included mobile services, wire-line services, public booth services, and wireless desktop phones. As of 2009, it catered to around 37 million customers across 320,000 towns and villages of India. In November 2008, Tata Teleservices announced it was entering into a JV with DoCoMo. Under the JV, DoCoMo bought a 26 percent stake in Tata Teleservices for US$ 2.7 billion. Subsequently, DoCoMo made an open offer for 20 percent of the outstanding equity of Tata Telecom Maharashtra Limited (TTML). In addition to this, DoCoMo acquired 6 percent of additional shares in the company from the Tata Group.
CORPORATE PHILOSOPHY
With the aim of creating a new world of communications culture, we NTT DOCOMO will devote all the skills, know-how and energy towards the establishment of more "personal communication" with our customers that contribute to their heartfelt satisfaction.
10 A New World of Communications Culture More personal communication Reliable access Real time access E-communication One-to-one personal This gives birth to a new world of communications culture Freedom to enjoy communications anytime, anywhere with anyone Opening of endless lifestyle horizons
To achieve this
In order to create a world of more innovative and enriched communications, we will improve service quality, aggressively move forward with the development of various services. We will also research and develop a more advanced user-friendly communications interface, and at the same time we will provide these services and technologies to an ever expanding area.
Customer Satisfaction:
Communications those are always ready when needed. Capability to contact whomever, from wherever and whenever the customer desires. Happiness that comes from heart-to-heart communications. Bringing customers another step closer to realizing their dreams. Responding to every customer with consideration, courtesy and thoroughness. Providing products that give customers easy and convenient access to cuttingedge functionality.
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To achieve this
First and foremost, we will fulfill expectations of customers by fulfilling our response to their needs through improved service quality, building original networks, enriching functionality and expanding the service area. In addition, by providing an expanding and ever-improving selection of services at inexpensive rates, we will deliver satisfaction to a growing diversity of customers. Making the most of the talents of each individual in our company. Respect for the individuality and sense of values that are unique to each person.
By improving our system and programs for the enhancement of human resources and unifying our human resource development, we will empower each individual to exert their skills to the utmost of their capabilities and discover new potential. At the same time, we will strive to create a workplace that motivates individuals through measures such as improvement of the working environment and labor conditions and enhancement of health and welfare benefits.
12 Tata Docomo was the next one to employ disruptive innovation in the Indian mobile industry. Currently the game is not played on the price front but Value added services front, which is evident from the advertisements of Airtel (Madhavan and Vidya Balan) and Vodafone (Zoozoos) in the past. If Aircel is redefining how telecom operators approach value added services and GPRS in India, Tata Docomo is doing its bit to change billing practices. The joint venture between Tata Teleservices and Japanese telecom major NTT Docomo officially began rollouts with a plan to invest $2 billion for its pan-India GSM services.
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MARKETING STRATEGY
Tata Docomo appears to be banking heavily on its tariff plans the company is offering a 1 second pulse instead of the usual 1 minute pulse that other telecom operators are offering. This means that consumers are charged on a per second basis, instead of a per minute basis, and end up saving money on unused seconds. A nifty little application How much can you really save on Docomos website explains how this works. Rs. 0.01/second is a marked change from the Re 1/min and Rs. 0.49/min charges that usually applies.
MARKETING MIX
4PS OF MARKETING MIX:
Product Price Place
14 Promotion.
PRODUCT:
TATA DOCOMO having good range of services. Tata Docomo provides both postpaid and prepaid services. Tata Docomo having good quality network which provides clarity in voice.
PRICE:
It having attractive tariff plan: TATA DOCOMO having 1paisa /sec it is applicable for both prepaid and postpaid.
PLACE:
It is having good range of channels of distribution: As Tata already exist in this field of telecommunications as Tata Indicom. It has wide range of channels of distribution to sell TATA DOCOMO services.
PROMOTION:
Advertising: TATA DOCOMO following different style of advertising pattern in TV and newspapers. Due to that reason it was reaching public very fast.
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16 Now while this plan might sound unique, it isnt that it hasnt been tried before back in 2004, Tata Indicom had launched 1 second pulse plans, which going by their current plans, appears to have been shelved. At present, Tata Docomo has launched voice portals, 24-hour music, cricket commentary and voice chat, apart from offering free Missed Call Alerts and Voice Mail. Interestingly, voice based services are also being priced with a per-secondpulse: 24 hour music and voice chat are priced at Rs. 0.02/second. Caller Tune search service Genie is also being priced at Rs. 0.02/second. This is a marked change, again, from the per minute pricing, and can offer consumers cheaper options.
An initiative that has taken the service provider industry by storm The pay per second model has really paid off well for the latest entrant in the Indian GSM space, Tata-Docomo. The new pricing strategy from Tata-Docomo has changed the rules of the GSM game, which is dominated by AirTel and Vodafone. Tata-Docomo also launched its first mobile handset in September 2010. Mobile pricing innovation Tata Docomo now charges per website for Mobile Browsing! This is surely a first world over Tata Docomo have gone ahead and launched an innovative mobile Internet offering which allows users unlimited usage of their favorite websites on mobile for a fixed cost. Tata Docomo has been forefront in coming up with various attractive pricing schemes, especially, in the pay-per-use paradigm. They were first to introduce pay per second billing on calls, which now is followed by every mobile service provider. They followed it with pay-per-minute and pay-per-call pricing plans as well which has made them one of the fastest growing Mobile companies in India.
17 The new pay-per-website offering however, takes it to a complete different level and unheard of pricing strategy. This is a very thoughtful strategy and something which has potential to growth rapidly. Tata Docomo pricing strategy. Pay per site offer two combination: Those only interested in single websites need to pay Rs 10 per site Those with multiple site browsing needs can opt for a combo pack at just Rs 25 per month. Customers have a bundle of options within various categories of social networking sites (Facebook, Twitter, and Linked In, Orkut), mail options (Gmail, Yahoo, Rediff) and chat messengers (GTalk, Yahoo! Messenger, Nimbuzz). Having said this, there is also a caveat If you thought it was valid for unlimited useit is not. Tata Docomo pay per site plan categorizes each service under 2 different genres Social Networking Site and Emailing & Instant Messaging. Each site under this genre is priced at Rs. 10/- bundled with 200 MB free data usage valid for 30 days, post which customers will be charged at 1p/kb. There are also 2 Combo options SNS Combo Pack and Emailing Combo Pack and each Combo Pack is priced at Rs. 25/- bundled with 500 MB free data usage post which the customers will be charged 1p/kb. We have been quite impressed the way Tata Docomo have gone about their innovative pricing models as well as marketing strategies. Per Character SMS Pricing On 8th September 2009, the GSM branch of the Indian carrier Tata introduced a novel pricing strategy for text messaging. Under the brand Diet-SMS, TataDOCOMO bills its customers by-the-character, rather than on a per message basis. It is a very attractive marketing scheme, since many wireless subscribers, almost by habit, tend to pepper their text messages with abbreviations and acronyms.
18 Under the new plan, Tata-Docomo charges one paisa per character. For example, a text which reads tnx (for thank-you) is charged at 3paise instead of the normal sms charge. The Impact Tata Docomo has gathered significant market share, owing to its pricing strategies. Existing mobile operators are matching the price and the clear winners are the subscribers since all the competition is sending the prices downhill. Tata Docomo pricing strategy.
associate with the thought 'do'. Tata Docomo, for the first time in the country, offered pay-per-second billing; though other telecom providers have followed suit since. The company has carried out a few adverts that highlight the brand's unique features and some other topical advertising during Ganesh Chaturthi and Diwali. The latest from the GSM provider is the 'Friendship Express' TVC. The ad opens inside train, where everyone is doing their own thing. A couple of the travelers don't like the solemn mood and start humming the Docomo tune. Slowly and steadily, others pitch in and soon most of the train is singing along. The ad ends with the super, 'Why walk alone when we can dance together'.
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Advertisement strategy
20 Tata DOCOMO ropes in Ranbir Kapoor as brand ambassador NEW DELHI: Tata Docomo, the GSM brand of Tata Teleservices (TTSL), today appointed Bollywood star Ranbir Kapoor as its brand ambassador. The company has inked a two-year contract with Kapoor and will roll out various televisions, print and outdoor campaigns with the actor, starting with the upcoming Indian Premier League (IPL) tournament. "We think Tata Docomo is an inspirational brand and so is the charm and personality of Ranbir Kapoor, so it is a great match. We will leverage him in various campaigns to build the brand further," TTSL Head Corporate Marketing Gurinder Singh Sandhu told PTI. Tata DOCOMO will undertake various marketing initiatives with Ranbir Kapoor, including television commercials, print campaigns, outdoors and retail front displays, he added. The company will introduce its new campaign during the IPL tournament, which kicks off on April According to media analysts, Tata Docomo is expected to spend in excess of Rs 50 crore for the 360-degree campaign during the IPL season. Other telecom operators like Bharti Airtel, Idea Cellular and Reliance Communications have also appointed Bollywood stars as their brand ambassadors. While Airtel has worked with Shahrukh Khan, Saif Ali Khan and Kareena Kapoor, Idea Cellular has Abhishek Bachchan as its ambassador. Reliance Communications has worked with Hrithik Roshan. Vodafone, on the other hand, has found success with its 'Zoozoos', the egg shaped cartoon characters featured in its ad campaign.
CALL RATES:
TATA DOCOMOS Popularity Among Indian Mobile Users
21 Market Competitors of Tata Docomo: Airtel Reliance Communication BSNL Idea Aircel Vodafone
22 Chhattisgarh Haryana Chennai Eastern Uttar Pradesh Western Uttar Pradesh Punjab Rajasthan ,Recently Launched Aand Rest of West Bengal, Recently Launched.
PLANS
Tata DOCOMO Daily Plans. When every day is different, why have a fixed plan? A brand new day calls for a brand new plan. Choose from Daily plans on local, STD, Night calling, GPRS & Music and make your own Daily Plan.
Benefits:
Anytime purchase Minimal cost Ease of process
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How to subscribe:
Dial *141# and choose from Daily plans on local, STD, Night calling, GPRS & Music. Product options:-
Daily Rental Packs (Rs.2) All local at 1p/2sec STD at 3p/4sec Local Night On-net at 1p/10sec Local On-net at 1p/6sec USA/Canada & UK(F) at 3p/sec Gulf at 11p/sec All local & National SMS at 1p
Weekly Rental Packs (Rs.10) All local at 1p/2sec STD at 3p/4sec Local Night On-net at 1p/10sec Local On-net at 1p/6sec USA/Canada & UK(F) at 3p/sec Gulf at 11p/sec All local & National SMS at 1p
Talk More 30 local minutes @ Rs.5 on Tata DOCOMO Network. 30 local minutes @ Rs.12 across Networks. 30 local/National minutes @ Rs.14 10 Local/National minutes @ Rs.5 Night Talk Now converse through the night. 60 Free Local Night minutes on Tata DOCOMO Network. 30 Free local On-net minutes @ Rs.3 20 Free local minutes @ Rs.5
24 10 minutes to USA/Canada @ Rs.20 5 minutes to USA/Canada @ Rs.10 Entertainment 15 minutes FREE music @ Rs.5 Cricket Cricket Alerts @ Rs.5/day
Terms and Conditions: Daily implies active till 12 midnight on the same day of pack activation. Ex: A subscriber activated the pack on 25th Feb'10 then the pack with daily validity will expire at midnight of 25th Feburary'10#. In case on night packs the expiry of the pack will be 7 am of the next day of activation of the pack. Ex: A subscriber activated the night pack on 25th Feb'10 then the pack with daily validity will expire at 7 am of 26th Feburary'10#. The pack will get activated maximum within 2 hrs of request receipt on the system. You will get an automated confirmation SMS once the same is configured on our systems. You can activate multiple packs in a day.
Pay Per Site Packs:Pay Per Site Combo Packs Mail Combo Social Networking Sites Combo Mail Packs Gmail+GTalk Type MRP(Rs.) Validity (Days) Mail SNS 25 25 30 30 GPRS Usage 500MB 500MB free
10
30
200MB
25 Rediffmail Yahoo Mail + Yahoo Messenger 'Social Networking Sites Packs Facebook SNS Twitter SNS LinkedIN SNS Orkut SNS Nimbuzz SNS Mail Mail 10 10 30 30 200MB 200MB
10 10 10 10 10
30 30 30 30 30
SMS offers:
Pay for the First 3 Local SMS everyday and get the next 150 Local SMS free for the day Pay for the First Local/ National SMS everyday and get the next 100 Local/ National SMS free for the day Pay for the First 3 Local SMS everyday and get the next 750 Local SMS Free for day Pre-STD, ISD and National Roaming without rental. Automatic alerts when your Balance is Low.
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CUSTOMER SATISFACTION
The 21 century belongs to the service sector. The customer of yester year was a silent person who uncomplainingly purchased the goods from the market place. There is a new customer emerging today. Customer satisfaction can be defined as, customer satisfaction is the feeling derived by the consumer when he compares the actual performance of the products with the performance that he expects of it. The measurement of the customer satisfaction typically begging when a company realizes that their customer s is the people, who provide the revenues that, hopeful, will cover expenses. Most companies start by establishing a customer satisfaction baseline. Then they target year by year improvement.
27 Understanding customer requirement and delivering superior quality goods and services to achieve composer satisfaction lead to the retention and growth of the customer.
Customer Loyalty:
These four factors will greatly affect your ability to build a loyal customer base: Products that are highly differentiated from those of the competition. Higher end products where price is not the primary buying factor.
28 Products with a high service component. Multiple products for the same customer. Loyal Customers and Loyal Workforces Building customer loyalty will be a lot easier if you have a loyal workforce not at all a given these days. It is especially important to retain those employees who interact with customers such as sales people, technical support, and customer-service people. Many companies give a lot of attention to retaining sales people but little to support people. The increasing trend today is to send customer service and technical support calls into queue for the next available person. This builds no personal loyalty and probably less loyalty for the firm. Before going this route, be sure this is what your customers prefer.
Instant Feedback:
Recently, many organizations have implemented feedback loops that allow them to capture feedback at the point of experience. For example, National Express, one of the UK's leading travel companies invites passengers to send text messages whilst riding the bus. This has been shown to be useful as it allows companies to improve their customer service before the customer defects, thus making it far more likely that the customer will return next time.
29 sales pitches and the product babble. Let the customer talk and show them that you are listening by making the appropriate responses, such as suggesting how to solve the problem.
COMPETITOR ANALYSIS
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COMPETITOR ANALYSIS
The competition has intensified the past few months with new players and schemes coming in. There has never been a better time for the customer to get a mobile phone connection There are at least six if not more operators to choose from in ever circle. In June 09, TATA DOCOMO broke the old system of tariff by introducing per second billing system. As soon as they did this, the other followed suit with price cuts everywhere. Suddenly the idea of calls being free was not so outrageous. The prices were reduced to such an extent that the viability of the business was in questions.
31 The competitive environment of TATA DOCOMO can be looked at from the following perspectives
MARKET SHARE
The government issued fresh licenses in 2008.As a result of this the market gets crowded though incumbents still hold larger market shares are shown above. However a point to note is that the new players have lower entry costs with very deep pockets. They also have no legacy issues like the older players and hence are more adept to changes market situations. The cost of infrastructure has reduced dramatically due to the market growth and DOCOMO had an advantage here.
MARKET CAPITALISATION:
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33 The equal competitors are coming up with their new tariffs, plans, special packs and their varying services to prove themselves to be much competitive and trying to anchor them firmly in this mobile sector. Currently the Tata Docomo came up with its services with an all new tariff scheme of pay per second which has brought out a massive revolution in the market. On 30th Oct the leading mobile service provider Bharti Airtel launched their much awaited Pay per Second tariff all throughout India. The tariff comparison with Airtel and TATA Docomo is as follows, Airtel with its inception on 2001 renders number of customers but their tariff, call rates to different network makes confusion and remains unstable. But Docomos 1p/sec throughout India makes consumers to keep track of their account and controls expenses. Airtel has kept different SMS charges even in their Pay Per Second plan with local sms being charged at Re.1 and National sms at Rs.1.50, whereas Docomo introduced SMS charges based on the number of characters. No recharges are needed to opt for per second calling after one year. Package activation of Airtel ranges from Rs.64 to Rs.99 and varies from circle to circle. Docomos does not charge anything extra for activating the per second pack since the tariff plan by default is on per second basis. The Airtel tariff calculation is hard ranging from 1p/sec to 1.2p/sec , but 20% higher to other operators whereas A2A calls are kept at 1p/sec and that to other operators are charged at 1.2p/sec. But Tata Docomo is offering a limited period offer of STD calls at 1p/sec. But Airtel is older than Docomo so it has compact network links than Docomo, so this is the place where Docomo has to establish itself. Meanwhile it is found that Docomo with both GSM and CDMA network added over 4 million subscribers in September, beating market leader Bharti Airtel yet again. Airtel had 2.5 million new users in September. The battle has just begun as new operators are still to join the war. Do have your say what you edict is going to be ?
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SWOT ANALYSIS
STRENGTH WEAKNESS OPPORTUNITIES THREATS
STRENGTHS:
First to introduce seconds tariff plan (seconds pulse) Good brand image of Tata services Having large variety of plans Plans are affordable by any common person.
WEAKNESS:
Signal strength. Postpaid connections are not available as of now. Customer services are not satisfactory. Concentrating only on rural areas.
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OPPORTUNITIES:
Have a great opportunity to expand its services. To introduce any new plans for internet users. Introduce 3G compatible services. To introduce new combined plans like, SMS, Internet, Calling integrated offers.
THREATS:
If signal strength is not increased it may lead to change in the network service by the customers. Tata has to clarify whether this 1ps/sec will continue till its lifecycle. Heavy competition from all other network providers.
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FINDINGS
It is found that TATA Teleservices is the first company to launch prepaid 1 pec. p/sec. services in the country.
The call rates are found to be at par with the other competitors. The availability of the recharge voucher was found good. But some time it is not available.
Most of the respondents found the customer care service is not satisfactory. Nearly all the respondents told that Quick Problem Solving is desirable quality in the customer care Executives.
The queries and problem of the customer were solved but not immediately, there is a scope for improvement.
More stress was given on customer acquisition then satisfying the Existing customers.
While conducting a survey it was found that still many people are not aware of the term GSM and CDMA even they basic difference between them.
38 The voice clarity of GSM is better than CDMA. When CDMA phones are near any digital or magnetic instrument the poor crack due to interference and also cross connection problems are faced by some of the users. GSM users are satisfied with good coverage strength anywhere. Many people who are interested in internet connectivity and data transfer services get attracted to GSM. As internet connectivity and data transfer is cheaper with GSM. It is found that international roaming facility is not so good as it should be. Supplementary facilities like call wait call forward, call hold, call divert, call conference is satisfied the users.
RECOMMENDATIONS
The network coverage is another asset for the companys image, which needs to be preserved in future.
The overall image of the customer care services was found to be good but with some loopholes related to delays in problem solving.
The company should be more prompt in handling the queries and problem of the customer, which is vary essential for the prepaid card so as to retain the customers with the company in future.
39 The customer care executives should be more efficient in handling the customer and also more friendly and polite their conversation, while dealing with the customer. After sales service is required to be maintained properly, which is not up to the mark Call rates is affordable so it should be maintained at this level.
CONCLUSION
After analysis and interpretation of the data it can be concluded that Tata Docomo is providing a broad range of various schemes ranging from international calling to hello tunes. This is the critical factor to attract various customers. Wide range of schemes is also leading to increase in number of customers with rapid pace for Tata Docomo. Tariff charges introduced by the Tata Docomo are found to be cheaper than other services. Tata Docomo has emerged as a giant killer due to their tariff plans and heading towards the position of dominator. Tata Docomo is providing some unique features and services like pay per second, SMS per character, pay per site plans that are making them being different from their competitors. TATA DOCOMOS Popularity Among Indian Mobile Users
40 Awareness of the Tata Docomo is spreading widely among people due to their promotional activities. Buyers are now insisting for cheaper plans or threatening to opt out. Majority of the customers are satisfied with the services of the Tata Docomo and they are not ready to switch on to other service providers.
WEBLIOGRAPHY:
www.tatadocomo.com www.mobilenetwork.com www.divein.tatadocomo.com www.fonearena.com
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BIBLIOGRAPHY:
Digit (monthly magazine) Times Of India Hindustan Times