Holding
Steady
(Edited Text of Annual Report of FADA’s Council
for the Year 2009-10)
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1. |
Previous
AGM
The previous AGM of the Federation was
held on 27th August 2009 at Hotel Taj Palace, New
Delhi. The Annual Accounts and the Annual Report
of the Council for the year 2008-09 were adopted
at the AGM. The AGM also re-appointed M/s Bhatia
& Bhatia, Chartered Accountants as Auditors for
the year 2009-10 and constituted anew Council for
the year 2009-10 by elections in terms of Articles
18 and 20 to 29 of Articles of Association.
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2. |
Council
and Office Bearers for the Year 2009-10
The Council for the year 2009-10, constituted afresh
at the previous AGM re-elected Mr S P Shah
and Mr Nikunj Sanghi as President and Vice President,
respectively, for the year 2009-10. Mr Sundeep Bafna
and Mr Mohan Himatsingka were unanimously elected
Hony Secretary and Hony Treasurer, respectively.
The new Council continued on course charted by the
previous Council, ably headed by Mr S P Shah. The
Council also embarked on a number of new initiatives
for the benefit of retail automobile trade and society
at large. It is a matter of satisfaction for the
Council that the activities undertaken by FADA made
a steady headway. Important activities and events
during the year under report are given hereinbelow.
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3. |
Council
Meetings
Council during the year held 6 meetings at Delhi
(4), Mumbai and Patna. The objective of rotating
the meetings was to meet members in various parts
of the country and to understand the scenario at
the local and regional levels for appropriate action,
if necessary.
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4. |
45th
Annual Session of FADA
As per the past practice, 45th Annual Session
of FADA was dovetailed with the previous AGM held
on 27th August 2009 at Hotel Taj Palace, New Delhi.
The distinguished guest speakers at the 45th Annual
Session were: Dr Pawan Goenka, President, SIAM and
President, Mahindra & Mahindra (Automotive Sector);
Mr Mayank Pareek, Executive Officer (Marketing &
Sales), Maruti Suzuki; Mr Anil Dua, Sr VP (Mktg
& Sales), Hero Honda; Dr Rajesh Shukla, Sr Fellow
and Chief Statistician, NCAER; and Mr Ashok Khanna,
Executive Vice President, HDFC Bank.
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5. |
Auto
Summit 2010 - 6th Mega Biennial Convention of Automobile
Dealers
FADA has been regularly organising biennially a
convention of Automobile dealers - Auto Summit commencing
from the year 2000, at New Delhi coinciding with
the Auto Expo. The 6th Auto Summit 2010 was held
on 8th & 9th Jan'10 at Hotel The Lalit, New Delhi
on the theme: "Auto Retail - Restructure for Sustained
Growth". The event was organised in association
with SIAM. The 6th Auto Summit was a tremendous
success - be it the participation, the stature of
speakers, the quality of deliberations, the impeccable
arrangements or the grandeur.
Mr Kamal Nath, Union Minister of Road Transport
and Highways, Government of India inaugurated the
Summit and delivered the inaugural address. The
impressive array of guest speakers at the Summit
comprised of "Who is Who" of automobile industry,
including Mr Pawan Munjal, MD, Hero Honda; Dr Pawan
Goenka, President, SIAM & President, M&M; Mr Karl
Slym, President & MD, GMI; Mr Ravi Pisharody, President
- CVBU, Tata Motors Ltd; Mr VineetAgarwal, ED, TCI;
Mr Sohanjeet Randhawa, Volvo India; Mr Rajive Saharia,
ED - Mktg, Ashok Leyland; Mr Anil Dua, Sr VP - Mktg
& Sales, Hero Honda; Mr Pankaj Dubey, National Business
Head, India Yamaha; Mr H S Goindi, President - Mktg,
TVS Motor Co.; Mr Shaji Koshy, Head - Sales & Mktg,
Royal Enfield; Mr N K Rattan, Operating Head-Sales
& Mktg, HMSI; Mr R C Maheshwari, CEO-3-WheelerDiv.,
Bajaj Auto; Mr Ajay Budki, National Sales Head,
HSCI; Mr Neeraj Garg, Director - Mktg & Sales, Volkswagen
Passenger Cars; Mr Arun Malhotra, Sr VP, M&M; Mr
Arvind Saxena, Director - Mktg & Sales, HMIL; Mr
Pankaj Narula, EO – After sales Service, Maruti
Suzuki; Mr Prince Augustin, Executive VP - Human
Capital, M&M; and Mr Sanjay Saraswat, GM - Sales
& Service Planning, Bajaj Auto. Mr R Haresh (T V
Sundram lyengar & Sons), Mr Sharath Vijayaraghavan
(Sundaram Motors), Mr Mohan Himatsingka (Maurya
Motors), and Mr Prafulla Kumar Kale (Jaika Motors)
representing auto retail also shared their thoughts
& experiences with the participants.
In addition, a galaxy of speakers representing allied
businesses, international organisations, academia
and media added their perspectives to the discussion.
Among the eminent speakers who addressed and interacted
with the participants were: Mr Edward Tonkin, Chairman,
National Automobile Dealers Association (NADA) -
USA; Mr Evaldo Costa, President, Brazilian Dealers
Institute;
Mr Dmitry Gulin, President, Russian Association
of Automobile Dealers; Mr Albert Gallegos, Director
-International Affairs, NADA; Mr S Muralidharan,
VP, Bosch Ltd; Mr Anil Sainani, Director, S & S
Empowering Solutions Pvt Ltd; Mr Kapil Arora, Partner,
Ernst & Young; Mr Manish Jar, Managing Partner &
CEO, Idea/ Sewells; Mr V Lakshmi Narasimhan and
Mr Anindya Dhar, Magma Fincorp; Mr Pankaj Patel,
CEO, Carazoo; Mr R Sarvanakumar, Castrol India;
Mr R Kannan, IFFCO-Tokio; Mr R Balaji, Mahindra
Finance; Mr I S Phukela, The New India Assurance
Co.; Mr Vijay Kumar, Presidents Head, Motor Business,
Bajaj Allianz; Mr Bisheshwar Singh, Universal Sompo
General Insurance Co.; and Mr Dinanath Dubhashi,
L&T Finance.
The Auto Summit 2010 was unique in more than one
way. For the first time, there were six concurrent
group discussions on fundamental, bread & butter
issues of dealership management, essentially on
how to increase efficiency, productivity and revenues
by introducing and improving the systems & policies
and tapping new business opportunities. The topics
chosen included: Used Vehicle Sales; Dealership
Management Information Systems; Increasing Revenues
from Retail Channel Partners; Increasing Revenue
from Workshop; Manpower Planning & HRD; and Internet
as a Marketing Tool.
Another unique feature of the Auto Summit 2010 programme
was the presentation of Automotive Dealership Excellence
Awards (ADEA) to automobile dealers excelling in
various areas of dealership management and community
service, including Sales Satisfaction Index, Service
Satisfaction Index, Employee Satisfaction Index,
Corporate Social Responsibility and Green Initiative.
ADEA- a joint initiative of Auto Monitor and FADA
- for the year 2009 were presented at a gala function
in the evening on 8th January 2010 to 13 automobile
dealers who were adjudged by an independent jury
of eminent persons on various parameters as the
winners from amongst a large number of nominations
received for various categories of awards.
Dr Brijmohan Lall, Mr Madhur Bajaj, Mr Edward Tonkin,
Mr Dmitry Gulin, Mr Evaldo Costa and Mr Liam Donnelly
of BMP Paribas Group, among other distinguished
guests, graced the occasion and presented the awards
to the winners in various categories. The validation
and selection process was developed and handled
by CARE - a renowned credit rating agency. As a
part of the awards presentation function, a panel
discussion was organised by CNBC TV18. The panel
discussion moderated by Mr Senthil Chengalvarayan,
a leading media personality, was telecast by CNBC.
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6. |
Regional
Meetings & Open House Sessions
Regional Meetings and Open House Sessions were organised
at Nagpur, Chandigarh, Mumbai, Patna and Kolhapur,
with a view to reaching out to members in various
parts of the country and identifying and highlighting
the problems and issues facing automobile dealers
at the state and local levels.
The meetings provided an opportunity of interaction
with the State Government authorities, representatives
of automotive industry and others connected with
automotive business.
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7. |
Industry
Relations
FADA continued to work in partnership with industry
and all other stakeholders for sustainable growth
and development of automotive business. FADA had
a regular dialogue and interaction with SIAM and
individual OEMs on various issues of mutual concern,
particularly in the areas of registration of vehicles,
vehicle emission standards, safety standards, inventory
management & control, dealer viability and non-uniformity
in road tax and other taxes applicable to motor
vehicles.
Office bearers and other senior members of FADA
actively participated in the meetings, workshops
and conferences organised by SIAM from time to time
and also made presentations on various subjects
to give the auto retail perspective.
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8. |
Interaction
with the Government
FADA continued to have a regular interaction with
senior officials of Government at the Centre and
States to sensitise them on the following issues
in particular –
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Bringing
in uniformity in the provisions and rates
of VAT on vehicles across States; |
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Uniformity
in registration procedures and taxes; |
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Rationalisation
of excise duty on motor vehicles; |
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Delegation
of registration of vehicles to Automobile
Dealers and dispensing with the requirement
of physically taking the vehicles to RTO's
for inspection; |
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Putting
in place an effective Inspection & Certification
Programme for in-use vehicles, including non-transport
vehicles; and |
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Provision
for Automobile Dealerships with 3-S facility
in Land Use Planning & Development in major
cities, including rationalisation of conversion
charges for conversion of use from industrial
to commercial in Delhi. |
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9. |
Representations
to the Government Authorities
FADA made a number of representations at the State
and Central levels on various issues affecting auto
retail.
As in the past, FADA submitted its Pre-Budget Memorandum
to Union Ministry of Finance. FADA also released
its post-budget reactions and suggestions through
the media.
In addition to the meetings and interaction with
Transport Authorities in various States, FADA put
forth its suggestions on issues relating to motor
vehicle taxes & registration procedures, as also
on other matters affecting Motor Vehicles Act/Central
Motor Vehicle Rules, including the new vehicle emission
standards.
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10. |
International
Relations
International speakers from USA, Russia and Brazil
came all the way to address and interact with the
participants at the Auto Summit 2010. This shows
FADA's growing popularity with auto retail organisations
worldwide.
Mr Edward Tonkin, Chairman, NADA in his presentation
emphasised on the need to put in place franchise
laws in India on the lines of franchise laws in
force in USA, with a view to maintaining balance
of power and avoiding painful terminations. Taking
this forward, FADA will be working with NADA, Retail
Motor Industries Federation (RMIF) - UK and other
retail organisations in the world for the introduction
of dealer protection law in India.
Encouraged by the interest shown by the automobile
dealers' associations of UK, US, Russia, Brazil
and Japan for setting up an international organisation
of auto retail, FADA would be starting a dialogue
with them for formation of the apex body at global
level in near future. This initiative would not
only give more recognition to FADA but would lead
to exchange of ideas & best practices for the benefit
of automobile dealers across globe.
The year 2010 saw a flurry of activity with regard
to international relations. Three foreign delegations
- two from Netherlands and one from China visited
FADA during January-May 2010 and had interactions
with FADA representatives.
With India emerging as an automotive powerhouse
and an important market, foreign delegations visiting
India now make it a point to have interactions with
FADA.
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11. |
Major
Initiatives
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SIAM-FADA
Vehicle Safety Initiative
FADA has submitted a number
of representations and held meetings with
the Ministry of Road Transport & Highways
to press for incorporation of a provision
in the Motor Vehicles Act for an I&C regime
covering all categories of vehicles. While
the Government also seems to be equally
concerned over the dangers posed by the
ill-maintained, unsafe and polluting private
vehicles plying on the roads, it has not
been able to come up with the amendments
in the Motor Vehicles Act to put in place
the I&C programme in India, due to a variety
of reasons such as lack of resources & infrastructure
and sheer enormity of task, which an effective
I&C programme would entail to cover the
entire country and all categories of vehicles.
Since mandatory I&C programme is likely
to take time, FADA and SIAM have launched
a pilot on Voluntary Vehicle Inspection
in 19 automobile dealerships for passenger
vehicles that are more than 3-year old,
with the aim of making roads safer and environment
cleaner, thanks to the unstinted support
and keen interest shown by Dr Pawan Goenka,
President, SIAM. The inspection checks will
include inspection of brake, suspension,
emission levels, tyre condition & headlight
alignment. All the checks, except headlamp
& tyre condition, will be carried out on
computerised, automated machines and computerised
reports generated to avoid subjective judgement
as far as possible. Vehicle owners undergoing
these checks would have to pay Rs. 500.
However, two insurance companies, BajajAllianzand
ICICI Lombard have agreed to give a rebate
of Rs. 500 in motor insurance renewal premium
in respect of cars that undergo voluntary
inspection at any of the authorised Safe
Service Centres and are declared fit on
these five parameters. The pilot run is
expected to start by mid-Aug'10.
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Study
on Dealership Satisfaction
FADA would be working with
JD Power Asia Pacific to undertake a study
on Dealership Satisfaction. The study aims
to capture the dealers' voice and the ground
realities at the auto retail level. The
study is expected to throw up suggestions
for strengthening manufacturer-dealer relations
and improving dealer profitability. The
study is likely to be concluded in August/September
2010. |
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| (iii) |
Addressing
Manpower Shortage
Keeping in view the widespread
shortage of trained manpower suiting the
needs of automobile dealerships and their
workshops, FADA is working with Government,
SIAM and other institutions to create and
develop a talent pool of skill sets required
for effective dealership management.
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Constitution
of a Working Group for Insurance & Finance
For forging closer relations and
tie-ups with banks & insurance companies
and to get better business terms for retail
& wholesale funding, a small group comprising
of Mr Bharat Sanghvi, Mr Mukesh Jain, Mr
Jayendra Kachalia and Mr Binod Agarwal was
constituted. The group would also work with
insurance companies for introduction of
Gap Insurance in India. Gap Insurance is
the insurance cover for the difference between
market/actual value and book value, which
is in vogue in USA and European countries.
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| (v) |
FADA
Helpline
Having regard to the growing complexities
of automobile dealership operations, a service
viz. 'Helpline' had been started by FADA
in November 2005. The 'Helpline' service
aims at helping FADA members with the practices,
legal positions and clarifications on various
issues relating to taxation, environment
laws concerning vehicular pollution and
workshop operations, procedures & provisions
contained in Motor Vehicles Act/CMVR and
vehicle registration taxes. This initiative
of FADA has attracted a large number of
queries from members on various issues.
Director - Helpline and FADA Secretariat
have tried their best to clarify all such
queries to the satisfaction of members.
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12. |
Support
and Participation by FADA in Auto Shows
FADA supported and participated in auto shows organised
by Relio Quick at Chandigarh and Mumbai, and also
supported Auto Show South organised by SIAM & CII
in Hyderabad. These shows were well attended and
organized. Associating with such shows has further
enhanced FADA's image and visibility.
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13. |
FADA
Journal
Monthly publication "FADA Journal" continued to
grow in terms of quality, content, popularity and
circulation. The contents of Journal, in particular,
evoked appreciation from automobile dealers and
others connected with automotive business, for their
substance and usefulness.
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14. |
Media
Coverage
FADA's activities and concerns were widely
covered by the national & regional media from time
to time.
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15. |
Membership
FADA's membership strength as at the end of Council
Meeting held on 26th June 2010 at New Delhi stood
as under:
| Founder
Members |
: |
4 |
| Association
Members |
: |
16 |
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20 |
Other Members i.e. Individual Members,
Life Members, Supporting Members
| Region |
Individual
Members |
Life
Members |
Supportng
Members |
Total |
| East |
190 |
52 |
1 |
243 |
| North |
315 |
68 |
10 |
393 |
| South |
264 |
75 |
9 |
348 |
| West |
334 |
75 |
18 |
427 |
| Foreign |
1 |
- |
- |
1 |
| Total |
1104 |
270 |
38 |
1412 |
These members, most of who own multiple dealerships
represent more than 70% of the retail automobile
trade in the country.
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16. |
FADA
Secretariat
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| (i) |
Head
Office
Secretariat of FADA continued
to function from its own office premises
located at 805, Surya Kiran, 19, K G Marg,
New Delhi - 110 001. Efforts are being made
to further strengthen the Secretariat with
a view to providing more services of substance
to the members in keeping with the growing
membership base and their ever-increasing
expectations as well as changing dynamics
of retail automobile trade.
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| (ii) |
Setting
up Zonal Offices
To strengthen FADA activities,
zonal offices are proposed to be set up
in Mumbai, Kolkata, Bangalore, and other
major cities, which would organise meetings,
address local issues & problems, issue clarifications,
organize seminars & training programmes
and carry out other activities at the State
levels for the benefit of automobile dealers.
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Composition of FADA Council for the Year 2009-10
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Name |
Dealership/Organisation
Name |
Place |
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35.
36.
37.
38. |
Mr
S P Shah, President
Mr Nikunj Sanghi, Vice President
Mr Sundeep Bafna, Hony Secretary
Mr Mohan Himatsingka, Hony Treasurer
Mr Prem Bagga
Dr Prem P Bambha
Mr Suresh Bansal
Mr N K Batra
Mr R K Bubna
Mr Bharat Chordia
Mr Jay Praksah Didwania
Mr Anil Goel
Mr Pulak Goswami
Mr Ashish M Gupta
Mr Shivam Gupta
Mr Shirish Jadhav
Mr Mukesh Jain
Mr Anil Jhunjhunwala
Mr M Siddharth Kumar
Mr Zulfiquar Marikar
Mr K V S Prakash Rao
Mr Rajesh Sanei
Mr Naveen Sarawgi
Mr C H Shah
Mr Amar J Sheth
Mr Saral Talwar
Mr Sharath Vijayaraghav
an Mr V V Vijayendra
Mr Binod Agarwal, Past Pre
sident Mr Ajit Chordia, Past President
Mr Kailash Gupta, Past President
Mr Rakesh Jain, Past President
Mr Jayendra Kachalia, Past President
Mr Pradip R Kamdar, Past President
Mr Deshnidhi Kasliwal, Past President
Mr Vinay Nevatia, Past President
Mr Bharat M Sanghvi, Past President
Mr Ramesh Suri, Past President |
Neptune
Equipment Pvt Ltd
J S Fourwheel Motors Pvt Ltd
Fortpoint Automotive Pvt Ltd
Maurya Motors Ltd
Bagga Link Service Ltd
Nirmal Motors
Evergreen Motors
Super Parts Pvt Ltd (Baltic Hyundai)
East Zone Supply Corporation
Khivraj Motors Pvt Ltd
Shree Bharat Motors Ltd
Himgiri Automobiles Pvt Ltd
Abhishek Motors Pvt Ltd
Hind Motors (I) Ltd
Commercial Motors
United Agency / Niksia Group
Rishabh Motors Pvt Ltd
Bengal Hyundai (J J Automotive Ltd)
George Oakes Ltd
Marikar (Motors) Ltd
Garapati Garage (1959)
Dulichand Motors Pvt Ltd
Bimal Auto Agency
Rajesh Motors (Agencies) Pvt Ltd
Shaman Group
Talwar Group
Sundaram Motors
Southern Motors
Lexus Motors Ltd
Khivraj Motors Pvt Ltd
Commercial Automobiles Pvt Ltd
Gautam Motors Pvt Ltd
Navnit Motors Pvt Ltd
Automotive Manufactures Pvt Ltd
Kamal Auto Industries
Auto Centre
Automotive Manufactures Pvt Ltd
Subros Ltd / Rohan Motors Ltd |
Mumbai
Alwar
Mumbai
Patna
New Delhi
Karnal
Kota
Faridabad
Kolkata
Chennai
Bhubaneshwar
Delhi
Guwahati
Chandigarh
Bareilly
Pune
New Delhi
Kolkata
Chennai
Trivendrum
Vijayawada
Kolkata
Bangalore
Jaipur
Mumbai
Secunderabad
Chennai
Bangalore
Kolkata
Chennai
Jabalpur
New Delhi
Thane
Ahmedabad
Kota
Kolkata
Mumbai
New Delhi |
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Past Presidents
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No. |
Name |
Year |
Place |
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7.
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9.
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11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28. |
Mr
T S Santhanam
Mr R R Iyer
Mr J M Rane
Mr K N Talwar
Mr M P Sanghvi
Mr R K Poddar
Mr T K Seshadri
Mr S P Sanghi
Mr A K Agarwal
Mr M C David
Mr V K Surendra
Mr Surender Nath
Mr K P Jhunjhunwala
Mr Bharat M Sanghvi
Mr S Gopu
Mr M Ct Muthiah
Mr Ramesh Suri
Mr Ravi Poddar
Mr Arun Sanghi
Mr K R Raghavan
Mr Rakesh Jain
Mr Vinay Nevatia
Mr Kailash Gupta
Mr Ajit Kumar Chordia
Mr Deshnidhi Kasliwal
Mr Jayendra Kachalia
Mr Binod Agarwal
Mr Pradip R Kamdar |
1964-1965
1966-1967
1968-1969
1970-1971
1972-1973
1974
1975
1976
1977
1978
1979-1980
1981-1982
1983-1984
1985-1987
1987-1988
1988-1989
1989-1990
1990-1992
1992-1994
1994-1996
1996-1998
1998-2000
2000-2002
2002-2003
2003-2004
2004-2005
2005-2007
2007-2008 |
Chennai
Kolkata
Mumbai
New Delhi
Mumbai
Kolkata
Chennai
Mumbai
New Delhi
Kolkata
Bangalore
New Delhi
Kolkata
Mumbai
Chennai
Chennai
New Delhi
Kolkata
Mumbai
Chennai
New Delhi
Kolkata
Jabalpur
Chennai
Kota
Thane
Kolkata
Ahmedabad |
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