Cover Story Indian Entrepreneurs Are More Measured Than The Chinese
Corporate Credit Bank Guarantee
Business Trivia Vadilal- A Oldest brand of India
Visual Facts Sensex, Gold, Crude, Dollar, MCX Metal & MCX Agri
Cover Story What Flipkart can learn from TCS
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Business Trivia Bharatiya Reserve Bank Note Mudran Private Limited
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This Summer Project Report is study of Equity market scenario in May & June 2016 and Growth prospect of IT sector. And includes Infosys company analysis with peer set analysis.
Cover Story What Flipkart can learn from TCS
Corporate Credit Forfaiting
Business Trivia Bharatiya Reserve Bank Note Mudran Private Limited
Visual Facts Sensex, Gold, Crude, Dollar, MCX Metal & MCX Agri
This Summer Project Report is study of Equity market scenario in May & June 2016 and Growth prospect of IT sector. And includes Infosys company analysis with peer set analysis.
International Journal of Humanities and Social Science Invention (IJHSSI)inventionjournals
International Journal of Humanities and Social Science Invention (IJHSSI) is an international journal intended for professionals and researchers in all fields of Humanities and Social Science. IJHSSI publishes research articles and reviews within the whole field Humanities and Social Science, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
How Private Blockchains can save companies 30% of their costsAtul Khekade
Blockchain revolution has opened up countless possibilities for the way trade and exchange of value and resources can be managed in the new global economy. This White Paper by Atul Khekade discusses a simple implementation using Private
Blockchain and an underlying trade network that can help Fortune 500 and global corporations save up to 30% of their costs using exchange of idle resources.
8 Most Potential Cities Foreigners Can Invest in Indonesia: Other Than Jakart...PT Cekindo Bisnis Grup
Each province in Indonesia has its own prospects that can attract foreign investors to do businesses. However, two most favorite destinations that foreign companies are familiar with only Jakarta and Bali, whereas in the reality, other major Indonesian cities also have hidden jewels that can be your next gold mines. In this presentation, we will discuss 8 most investment-friendly cities in Indonesia, other than Jakarta and Bali.
Cekindo will help you to create the most appropriate investment in Indonesia for you. Visit www.cekindo.com.
If you are migrating to Australia, you need more than an immigration agent. You need a friend and guide whose support extend even after you have landed on the foreign soil. And you will find that at Debika Migration Services.
RISE conference 2016 report
Topics
1. AI and Robotics solving real problems
2. Growth and expansion of on-demand economy
3. Changing needs in China
4. Entrepreneurship and innovation
International Journal of Humanities and Social Science Invention (IJHSSI)inventionjournals
International Journal of Humanities and Social Science Invention (IJHSSI) is an international journal intended for professionals and researchers in all fields of Humanities and Social Science. IJHSSI publishes research articles and reviews within the whole field Humanities and Social Science, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
How Private Blockchains can save companies 30% of their costsAtul Khekade
Blockchain revolution has opened up countless possibilities for the way trade and exchange of value and resources can be managed in the new global economy. This White Paper by Atul Khekade discusses a simple implementation using Private
Blockchain and an underlying trade network that can help Fortune 500 and global corporations save up to 30% of their costs using exchange of idle resources.
8 Most Potential Cities Foreigners Can Invest in Indonesia: Other Than Jakart...PT Cekindo Bisnis Grup
Each province in Indonesia has its own prospects that can attract foreign investors to do businesses. However, two most favorite destinations that foreign companies are familiar with only Jakarta and Bali, whereas in the reality, other major Indonesian cities also have hidden jewels that can be your next gold mines. In this presentation, we will discuss 8 most investment-friendly cities in Indonesia, other than Jakarta and Bali.
Cekindo will help you to create the most appropriate investment in Indonesia for you. Visit www.cekindo.com.
If you are migrating to Australia, you need more than an immigration agent. You need a friend and guide whose support extend even after you have landed on the foreign soil. And you will find that at Debika Migration Services.
RISE conference 2016 report
Topics
1. AI and Robotics solving real problems
2. Growth and expansion of on-demand economy
3. Changing needs in China
4. Entrepreneurship and innovation
India's Exciting and Booming Tech SectorTroy Erstling
A presentation I gave at Harvard Business School on my learnings throughout the last year and a half living in Bangalore, India.
Slides on mobile/internet penetration courtesy of wearesocial (http://www.slideshare.net/fullscreen/wearesocialsg/social-digital-mobile-around-the-world-january-2014/1)
The NGO has become a very common term in India. It is amazing how these self governed bodies are working in India for its upliftment. Ngo makes the country people aware about their basic rights that very few people are aware of and therefore has led to the stagnancy in the growth of the country itself. Very few people have the right amount of knowledge about various ngo schemes that are managed by the central government. These organizations have become this SHG voice that raises its voice for the people till they are heard by the proper authorities. http://www.ftsindia.com/
ProJecT RePorT On BuYinG behAvioR of CusTomerS In BiG BazAaRSonu Sah
The Project Report is duly outcome of my hardwork for the future Viewers/Reader who is in the need to make the project report as their partial fulfillment for their academic purpose from where you can get the idea about the Big Bazaar and the Consumer Buying Behavior. Please do Like and Share if you find it fruitful.
As per PTU's Syllabus B.Com, Unit No. 1: Introduction to Entrepreneur, Entrepreneurship and Enterprise .Importance and relevance of the entrepreneur - Factors influencing entrepreneurship - Pros and Cons of being an entrepreneur - Challenges of women Entrepreneurs - Types of Entrepreneurs - Characteristics of a successful entrepreneur. - Entrepreneurial competencies – Factors affecting entrepreneurial growth – Role of entrepreneur in economic Development.
Growing startups in Asia, winning locally and scaling beyond the region. We take a look at how the Philippines startups disrupt the incumbents in Asia and what kind of strategies they take to scale beyond their local market.
Indian startups- How they effect the economyMohit Jaswani
• Wrote a paper upon analysis of Indian economic growth because of startups over the years and its sustainability under the guidance of Dr. Surinder Singh Nehra.
• It also covers overview of Australian Startup Economy and Case Study of two Indian startups i.e. Srjna and Hostelers.
Women Entrepreneurship in India: A Case Study Of Jaishree Kabra Of Kothari Si...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Cover Story Outlook Of Non- Ferrous Metal
Corporate Credit FCNR(B) Loans
Business Trivia First self-made female millionaire
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Cover Story Why corporate houses keen to set up universities
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Business Trivia BRICS- Mini IMF
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Cover Story Base Metal Outlook (CY 2014)
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Business Trivia -Bombay Stock Exchange
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Cover Story A shaky vision for Financial Inclusion
Outlook US Dollar
Stats Share of Public sector in capital formation
Emerging Country Peru
In Focus USA is second to China in monetary stimulus
Cover Story Corporate no longer interested in Bank Licence?
Outlook Rubber
Stats Q2 economic growth at 4.8% signals recovery
Emerging Country Vietnam
In Focus Retail inflation-linked bonds on the anvil
Cover Story King of the pack-Indigo Airlines
Outlook Japanese Yen
Stats Insignificant growth in World Trade
Emerging Country Ukraine
In Focus Blackberry’s Knight: V Prem Watsa
Cover Story End to QE: Not a great idea for Asia?
Outlook Chinese Yuan
Stats India Gloom on GDP, Fiscal Deficit and Mining and Manufacturing output
Emerging Country Nigeria
In Focus Facts on Food Security Bill
Cover Story Raghuram Rajan-The Academician Regulator
Outlook Silver
Stats The Bad books of Public sector Banks
Emerging Country Venezuela
In Focus New Companies Bill- Kudos to the lawmakers
Cover Story China Running out of Breath
Outlook Crude Oil
Stats India Trade Deficit FY-2014
Emerging Country Russia
In Focus Land Acquisition Bill- A Snapshot
Cover Story Is the irony of raising FDI limit
Outlook Coal
Stats Restructuring profile of PSU Banks
Emerging Country Hungary
In Focus E-Commerce Industry in India
Cover Story Is India's food security bill the magic pill?
Outlook Euro
Stats Currency Composition of Foreign Exchange Reserve
Emerging Country Philippines
In Focus US Becoming a Surveillance State. Right or Wrong?
Cover Story Narayana Murthy’s Second Innings
Outlook US Dollar
Stats Major Global Currencies Recent Movement
Emerging Country South Africa
In Focus Target Gold, Again
Back in Limelight-“Saradha chit fund scam brings in focus deficiencies in Financial sector”
Steel Outlook
Moonsoon trend in India
Emerging Country-Turkey
Should India issue Sovergin Bonds
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
2. Ramakrishna Velamuri believes entrepreneurship is an expression of individual freedom and deserves as much protection as freedom of speech. According to him, any curb on entrepreneurship is a threat to a democratic society. He should know a thing or two about the subject, since he teaches Entrepreneurship and Negotiation to MBA students at the China Europe International Business School at Shanghai. Speaking with N Mahalakshmi and Kripa Mahalingam, Velamuri brings out the differences between the two most vibrant entrepreneurial ecosystems in the world — China and India. While access to cheap capital and a larger risk appetite has seen Chinese entrepreneurs make larger bets, the more risk-averse Indian entrepreneurs have been successful in creating brands and disruptive business models (in healthcare and education).
Tell us about the entrepreneurship ecosystem in China. How is it different from India in terms of quality of entrepreneurs and opportunity?
Entrepreneurship in both countries is thriving. You have role models in both countries — Narayana Murthy and Deep Kalra in India, for instance; Jack Ma of Alibaba and Robin Li of Baidu in China. None of them come from business families — they are first-generation entrepreneurs who didn’t have a lot of capital or family connections. But they’ve become remarkably successful. Their function as a role model has been very powerful. A huge number of people in China and India now say we, too, can do it. Then, there are a number of industries today where you don’t need a lot of capital, at least to start off. You need capital to scale but not to start a business. So you have many educated people from middle-class families starting ventures. Thirdly, the ecosystem in both countries has improved tremendously in terms of funding. In both China and India, you have very active angel networks such as India Angels, Bangalore Angels, Chennai Angels, Shanghai Angels and Beijing Angels. Institutional capital, in the form of venture capital and private equity, is also available. So the ecosystem in both countries has evolved very rapidly.
The key differences are that even today, technology access in China is higher. In telecom, India has now almost caught up with China. But smartphone access in China is much higher. Nowadays, most internet applications are moving to the mobile platform. So, many of the ventures in China are focusing on mobile as a technology platform. Also, internet users in China are much higher - 400-500 million internet users against 90-100 million in India. That opens up a whole host of new possibilities.
China has been able to create national champions in the internet and technology businesses. They have made life difficult for Google, which has made it possible for Baidu to become the leader - its market share in China would be 80-90%. Alibaba, which is something like eBay but much bigger, has benefited because the government favours local players, and MNCs have made mistakes. There is a kind of technology ecosystem within China that Chinese internet start-ups naturally connect to; partly because of language, partly because it is so specific to China. In fact, there is no foreign internet player who has been successful in China. There are a number of small nuances that Chinese companies are able to leverage better — knowledge about local habits, how and what they buy — to tailor to local taste and preferences. A typical Chinese website is very crowded… the text is jammed together. On the other hand, Western websites are much neater and simpler.
All along, China has favoured the public sector over the private sector. When it comes to technology, you need a greater emphasis on private sector, quite unlike what China is used to... The technology, media and telecommunications industry is one area where the private sector is free to flourish in China. All the companies I mentioned, such as Alibaba and Tencent, are private companies. Let’s assume some foreign company wants to buy them out. That would be very difficult to do because foreign companies would find their value too high. But even if they could muster enough capital, the government will not allow [the sale] because it may consider that company a strategic asset. Behind the scenes, they may be watching these companies and how they behave. The leaders of these companies make sure they are on the right side of the government.
Indian Entrepreneurs Are More Measured Than The Chinese
3. You said that MNCs made mistakes and there are cultural differences even in the internet space. Can you expand on that?
If you take the experience of eBay, in the first three of four years, they had several transitions in the top management. So there was a flux inside the organisation. It is an organisational issue. [MNCs] don’t identify and have the right people. If you take the case of Tatas, they have been very successful in China. Tata is not a technology company. But James Zhan, who heads Tata Sons in China, has been with the company for several years now. You need that longevity in the top management position and then you need locals. The mistake MNCs made was that initially, they appointed Western expats. Then they said bringing in Western expats is not working as they don’t understand the local language and customs, so let’s bring in people from Taiwan or Hong Kong Chinese. There is an uneasy relationship between the local Chinese and the Taiwanese — sometimes it works well, at other times it doesn’t. For some reason, MNCs hesitate to hire local Chinese to run their business in China. Many of my Chinese students joined MNCs while in undergrad and they have left in frustration. One student who comes to mind worked for an MNC in the Fortune 50; he was hired for the strategy role and he kept identifying opportunities for them. The Chinese environment is dynamic, so there are a lot of opportunities that come up. But the decision making process where you have to keep referring to your expat seniors in China, put it as a report and wait for it to come back is very slow for the mindset of the Chinese people. This student left in frustration saying it is a good company, they have fantastic products and pay a decent salary but they put me in a position where they do not respond to what I do. And this is something that’s not peculiar to technology or internet companies alone.
Is there anything that is particularly striking to the Chinese entrepreneur as opposed to the Indian entrepreneur?
When China opened up its economy in the 1980s and 1990s, Chinese entrepreneurs were very daring. They took risks and initiative because it was all open space. They have big ambitions, they dream big -they all want to create the next billion-dollar company. They are obsessed with listing, preferably outside China. Indian entrepreneurs generally tend to be more measured. They measure the risk-return relationship very well. Capital in India is priced at the market rate. Interest rates are generally market driven and they pay significantly higher interest rates. So they need to be very careful about how they raise capital.
Take the case of the luxury hotel industry in China, where there is huge over-capacity. The occupancy rate in China is about 60%. At 60%, you are not making money; with 70-80%, you are making a lot of money. But why is there so much over-capacity? Because capital is very cheap for some companies and they sometimes invest without doing the proper diligence. Then they find themselves stuck with an asset that is not returning the capital it should. That tendency remains.
But now competition is heating up. There is a paper by a Chinese scholar that says between 1992 and 2004, the number of private companies multiplied by 37 times. We did an analysis of the decorative paints industry. There are 9,000 competitors in the decorative paints industry in China. In India, Asian Paints has the majority market share of 65%. In China, the largest company has just 1.5% market share. And mind you, we only looked at companies with a turnover of more than $0.5 million, which is not small by any stretch of imagination.
In the pharmaceutical industry, too, you have more than 10,000 companies and here again the largest player has a 1.5% market share. But the tendency to leap -to invest- before you look is changing now.
4. You wrote a book on how Indian companies are creating areas of excellence. It happened in healthcare but that is a one-off. What needs to happen for this to become main stream?
I think the great thing about people like Dr Gullapalli Rao [of LV Prasad Eye Institute] and Dr G Venkataswamy [Aravind Eye Hospital] is that they took ideas from outside their industry. Dr Venkataswamy used to talk about the McDonald’s model — can we make cataract operations like a McDonald’s franchise, wherein it is so standardised that I can deliver it the same way anywhere across the world? In his lifetime, he did not achieve his goal, but took his organisation to a significantly different level. What I noticed with Aravind and LV Prasad is that they may not have scaled themselves across the whole country. But what they have done is, through their book practices and through training people, they have diffused these practices.
Organisations such as Aravind and LV Prasad show the world that these operations can be performed at this cost. These two organisations are socially intertwined. They don’t have a for-profit motto. But then you create the space for for-profit organisations such as Vasan Eye Care to come in and say I can produce at that cost and I need to make a margin. They probably charge a slightly higher price than Aravind. If somebody like Aravind had not existed, somebody like Vasan would not have had the path clear before him. So many of the procedures, techniques and even people have been trained and made possible by Aravind.
One feature of Aravind is its free pricing. If you are a full paying customer, the option is left to you what you want to pay; so you end up paying more, not less. Has this free pricing model worked in any other industry, where you let the customer decide what the pricing ought to be?
I am not sure. The cross-subsidization model has worked for sure in many other industries. But I thought Aravind has a standard price: if the paying customer wants to pay more, he can do so. LV Prasad also gets support from some of its establishments and donor institutions. At LV Prasad, they recover 80% of their operating expenditure from operating revenue. I asked Dr Rao what it would take to recover the remaining 10-20%. He replied, “It is very easy for me to do. I just need to reduce the number of patients I treat.” He added, “I don’t want to do that. I have never had a problem in getting funding support. I will never consider reducing the number of patients.” LV Prasad treats 50% of its patients for free.
How popular has crowdfunding become in China?
As far as I have seen, it is not very popular in China. The Kickstarter model has not really taken off. If it does exist in projects, I have not encountered it. In both India and China, there is a lot of capital available. The entrepreneurs need to approach the right investor at the right time. In China and India, VCs have invested in very traditional businesses such as restaurant chains. Goli Vada Pav, for instance, is funded by Venture East.
In China, there are a number of restaurant chain models, retail and agricultural business products that have been funded. People ask why is it that these traditional businesses have been funded in India and China, whereas in the US you will find IT or life sciences in a VC portfolio. The reason simply is that the VC is looking for an upper value chain business. In a high-growth economy, like when India was at 8-9%, even a restaurant business is able to give you 30-40% IRRs [internal rate of return]. So why would you want to go and invest in a biotechnology business? It doesn’t make sense. If you can get that return in a pharma chain or a restaurant business, go with that, as it is less risky when compared to a business in life sciences.
5. One thing people say about China is that businesses there are not original; they are copycats. They only score because their speed to market is very high. Of course, the same thing could be said of Samsung a couple of years ago. In the way Chinese organisations are set up now, do you see them as being able to take a similar leap any time in the future?
Last year, we went to a city that is considered to be the hotbed of entrepreneurship in China, called Wenzhou. A number of companies there had started patenting their innovations. They were complaining to us that other Chinese companies were copying them with impunity. Protection of intellectual property rights will come to a country when local companies start demanding it. When local companies see the benefit that is when innovation will happen. There are some instances of Chinese companies being very innovative. For example, Haier’s small refrigerators. In the US, they use these for wines and in student dorms they created a refrigerator like that because people were using them as desks by putting a plank of wood on top.
Then there is Hanting, a chain of budget hotels. In China, there are three or four chains each with close to 1,000 outlets. Hanting is priced at about 200 RMB or less, which is $30 a night. It is a very clean room with an attached bathroom but barely any amenities. Soon after they came in, when wi-fi was not so common, they found people were using internet from the bed. So they provided an internet connection right next to the bed. They observed the behaviour of their customers and changed the design accordingly. The other thing that the entrepreneur did — bear in mind that he was from the information technology industry originally — was that he introduced modern IT technology to a budget hotel chain. So all their outlets are connected to a LAN [Local Area Network] and they have a very sophisticated online booking system. This chain is listed on NYSE or Nasdaq. There is another chain called 7 Days listed on Nasdaq. Then there is an internet company that is going to revolutionise how people buy furniture. It has an online service where an application lets you to key in the dimensions of the room you want to furnish and visualises what that room will look like with different models of sofas.
Despite this, there are not many China MNCs that compete globally. Why is that?
Huawei and Lenovo are companies that have revenues of $30 billion each. Both are private companies. Coming to the state-owned ones, there are some big ones here. China Natural Oil Offshore Corporation (CNOOC) has made a huge acquisition in Canada. Coming to China Telecom, I don’t think it has been very active outside China in the recent past, but the number of Chinese state-owned enterprises that have made acquisitions in places such as Africa and Latin America is huge. One of the big differences between Chinese and Indian companies is the quality and availability of management bandwidth. Chinese companies have far greater and better management bandwidth.
How have Indian companies in China been faring?
Among Indian companies, Tata has been very successful.
That is only because Jaguar is doing better. NatSteel, of course, is a commodities business.
TCS has 2,500 people. I think it has been successful because it has had a very good product and been very professional in its approach to the market. It has hired good local managers and has had a very good management development policy. It hires some of the best graduates and rotates them through the organisation. The Tatas have a very long-term approach to the market. They are very good at branding. They invest in brands, people and processes.
6. Is there any Indian company that has come to China and got it wrong?
Some people have disinvested. Aurobindo Pharma was a failure. At Larsen & Toubro (L&T), AM Naik is not very pro-China. He is quite bearish on China. The China CEO doesn’t fully agree with Mr Naik. They do see possibilities in China. L&T has a significant business existing in China. We met him a couple of years back and said that even if whatever you are saying about China is true, it still makes sense to hang in there and keep trying our luck. He said we will have to agree to disagree in this case.
Infosys has grown to 3,000 people in China. It was earlier very bullish on China. But now, somehow, it is much more sober on its prospects in China. I don’t know if that has to do with Narayana Murthy taking over and shifting the focus to the US. Ranbaxy (now owned by Sunpharma) has a JV in China. It is doing reasonably well. The Birlas have a number of businesses, but none of these are doing as well as the Tatas.
But since 2006 or so, Indian companies have actively pursued acquisitions abroad, going to Africa and Europe. But China has not been on the radar. When it comes to acquisitions and setting up greenfield projects, is the environment in China hostile?
There is that perception. Many companies, as you know, buy from the Chinese. But, for some reason, they believe that it is difficult to sell to China.
How about using it as a sourcing base? For instance, tyres. India is not a great market for tyre companies. Why do many companies sell to Africa and other regions, but not to China?
At one point, L&T was in the tyre manufacturing machinery business. In the meantime, what happened is that the Renminbi has appreciated a lot. In 2007, $1 was 7.71 RMB. Today, $1 is 6.1 RMB. That is an almost 15-20% appreciation of the Chinese currency. At the same time, other emerging market currencies have gone down. If you look at the construction industry, they are buying from China due to the lack of choice, because nobody else has the capacity to supply at the level that the Chinese are supplying goods. Then there’s Apollo Tyres, which made an acquisition of Cooper Tires in the US. That company had a JV in China but the JV partner was not too happy with the acquisition. The union went on strike and finally that whole deal fell through. One of the things that put Indian companies off China is that, the relationship with the government is also very important. That, to a large extent, determines your success in China.
Source:-Outlook Business
7. Bank Guarantee
The type of Guarantee, track record of customers and their financial position are the guiding factors in deciding the Guarantee limit, security and margin. Terms and Conditions for Bank Guarantee may vary from Bank to Bank.
How it works:
Let's assume Company XYZ is a small, relatively unknown restaurant company that would like to purchase $3 million of kitchen equipment. The equipment vendor may require Company XYZ to provide a bank guarantee in order to feel more confident that it will receive payment for the equipment it ships to Company XYZ.
To obtain this bank guarantee, Company XYZ requests one from its preferred lender (usually the bank with which it keeps its cash accounts). The lender provides the guarantee in writing, which is then passed on to Company XYZ and its vendor. Company XYZ's lender essentially becomes a co-signer on the purchase contract with the vendor.
A guarantee from a lending institution ensuring that the liabilities of a debtor will be met. In other words, if the debtor fails to settle a debt, the bank will cover it.
A bank guarantee enables the customer (debtor) to acquire goods, buy equipment, or draw down loans, and thereby expand business activity.
Bank Guarantee is an instrument issued by the Bank in which the Bank agrees to stand guarantee against the non-performance of some action/performance of a party. The quantum of guarantee is called the 'guarantee amount'. The guarantee is issued upon receipt of a request from 'applicant' for some purpose/transaction in favour of a 'Beneficiary'. The 'issuing bank' will pay the guarantee amount to the 'beneficiary' of the guarantee upon receipt of the 'claim' from the beneficiary. This results in 'invocation' of the Guarantee. IDBI Bank issues the entire range of Bank Guarantees, namely:-
Bid Bond Guarantee
Advance payment Guarantee
Guaranty for warranty obligation
Payment Guarantee/Loan Guarantee
Performance Guarantee
Deferred payment Guarantee
Shipping Guarantee
Trade Credit Guarantee
Standby LC
8. From selling sodas in 1907, Vadilal has traveled through four generations of Gandhis. Initially, founder Vadilal Gandhi used to make ice cream by the traditional Kothi method, using a hand-operated machine to churn milk with other ingredients, ice and salt. In 1926, Vadilal imported ice-cream making machines paying custom duty of 300-350%. From a small outlet, Vadilal had expanded to four ice-cream shops before independence and became popular for its flagship cassata ice cream, which was introduced in the 1950s. In 1984- 85 Vadilal started expanding outside Gujrat.
Sensex Gold (10 gm)
MCX Metal MCX Agri Crude Oil ($/barrel) Dollar/INR
9. About Investeurs Consulting Private Limited
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Team Chronicle
Akanksha Srivastava akanksha@investeurs.com
Nidhi Gogia nidhi@investeurs.com
Harpreet Kaur harpreet@investeurs.com
Disclaimer: Investeurs Chronicles is prepared by Research & Analysis Team of Investeurs Consulting Private Limited to provide the recipient with relevant information pertaining to the world economy. The information contained in the document is based on the releases made by various newspaper & publications; hence, we are not responsible for any inaccuracies in the information provided.