Dr. Saurabh Agarwal is a managing director and professor who has extensive experience in publishing, finance, and education. He has held leadership roles in several organizations focused on business, accounting, and worker development. In his keynote address, he discussed topics like financial innovations, disruptions in the financial industry, and keys to achieving global competitiveness in a rapidly changing digital world.

1. B Y
D R . S A U R A B H A G A R W A L
P H D ( F M S , D E L H I U N I V E R S I T Y ) , M . P H I L . ( D S E , D U ) , M . C O M . ( D S E , D U ) , B . C O M .
( H ) ( S R C C ) , U G C ( N E T )
M A N A G I N G D I R E C T O R , E D G E I N D I A P U B L I S H I N G P R I V A T E L I M I T E D ( E S T D . 2 0 0 5 )
( W W W . E D G E I N D I A B O O K S . C O M )
M E M B E R , M A N A G I N G C O M M I T T E E , A S S O C H A M ( E S T D . 1 9 2 0 ) ( W W W . A S S O C H A M . O R G )
P R O F E S S O R O F A C C O U N T I N G & F I N A N C E & D E A N , I N D I A N I N S T I T U T E O F F I N A N C E
A S S O C I A T E E D I T O R , F I N A N C E I N D I A
M E M B E R , E M P L O Y E E S T A T E I N S U R A N C E C O R P O R A T I O N ( E S I C ) , M I N I S T R Y O F
L A B O U R A N D E M P L O Y M E N T , G O V E R N M E N T O F I N D I A ( H T T P : / / W W W . E S I C . N I C . I N / )
M E M B E R , G O V E R N I N G B O D Y , D A T T O P A N T T H E N G A D I N A T I O N A L B O A R D F O R
W O R K E R ' S E D U C A T I O N A N D D E V E L O P M E N T ( F O R M E R L Y C E N T R A L B O A R D F O R
W O R K E R S E D U C A T I O N - C B W E ) , M I N I S T R Y O F L A B O U R A N D E M P L O Y M E N T ,
G O V E R N M E N T O F I N D I A ( H T T P : / / W W W . C B W E . G O V . I N / A B O U T - U S . A S P X )
K E Y N O T E A D D R E S S A T G L B A J A J I N S T I T U T E O F M A N A G E M E N T A N D R E S E A R C H
( G L B I M R ) , G R E A T E R N O I D A O N S E P T E M B E R 1 5 T H , 2 0 1 8 S A T U R D A Y
Digitization, Innovation and
Disruption: Keys to Achieving
Global Competitiveness

2. Current Status
 Scams
 Nirav Modi - LOUs
 NPAs
 SEBI
 New Instruments
 Innovations
 Disruptions
 Way out
 Size & Magnitude % of people connected
• Rise of Tech Giants like Facebook,
Amazon, Google, Paytm

3.  Limitations of Traditional Banking System
 Speed
 Service Availability
 Now, Matter of Hours to complete transaction
 Connectivity and Functionality enabled by
communication and computing technologies have
allowed consumers
 to exchange messages,
 place orders,
 make comparisons,
 take instant decisions,
 obtain digital payments and
 engage in activities in real time
 Automated Credit Scoring using advanced analytics & massive
data
Innovations in Financial Markets

4. Innovations in Financial Markets
 Promise growth
 More jobs and Services
 Make business more productive
 Help Government deliver public services efficiently
 Improve poor record of government initiatives
 Create better transparency and accountability
 Less corrupt world

5. Innovations in Financial Markets
Challenges
 More than 2 billion people have no access to any
financial services today
 About 59% Men and 50% women in developing countries
have an account with a regulated financial institution
 60% of the World Population is still Offline
 7.4 Billion total Population has access to information and
communication Technologies
 1.1 billion have access to high speed internet
 3.2 billion total Internet Users
 5.2 Billion mobile phone users
 7 Billion within the coverage of mobile phones

6. Innovations in Financial Markets
Challenges
 Need for Better Connectivity
 Safe Internet
 Digital divides of age, gender, income, education,
financial literacy continues to haunt the
accessibilities of innovation
 Regulatory Uncertainties
 Congestions on Digital Platforms
 Vested interest continue to create concentrations in
different segments of the industry.

7. Innovations in Financial Markets
 Cash Subsidy Transfers; Jan Dhan Yojana;
Mobile/Aadhar based banking enabled Financial
Inclusion to Common Man
 Major Innovations in Digital Payments
 Mobile Money Systems
 Bharat Interface for Money (BHIM)
 Unified Payment Interface
 *99#
 Issued RuPay Cards
 Aadhar Enabled Payment System
 Bharat Bill Payment System
 Credit and Local Currencies are alternative units of account
 Digital Currencies

8. Innovations in Financial Markets
Concerns
 Increasing number of online frauds
 Cyber Attacks
 Massive Theft of important financial information
 Money Laundering (Cyber Laundering)
 Terrorist Financing
 Illegal Money (Smuggling/Drug Trafficking/Flesh
Trade) transfers
 Proceeds of other Illicit financial flows (Tax Evasions
/ Corruption ) transferred easily
 Cyptocurrency

16. 16
FIFO Technology to be part of the Warehousing Policy
System of Containers marked with date of storage to
enable quick transportation and disaster management
In- Out Method of Storage
Innovation in Storage

17. 17
Y shaped Storage of
Food grains

18. 18
How to Manage Warehouses
Adoption of EOQ Method to manage foodgrains
Quantity
Period
Maximum
Average
Minimum
Danger Zone

19. 19
Mr. Vishwas Kachare who in period of 30 years has been
able to shift from a small hut to a 40,000 sq ft farm house in
Telanwadi. Starting from 27 acres of barren land to his
current day orchids of more than 300 acres
Mother Dairy's Safal whereby sorting of fruits and
vegetables into different categories and packing is done with
the help of farmers have significantly reduced the time lag
and burden on existing cold chain infrastructure
Use of Global positioning system (GPS), better electronic
weighing systems, local language billing machines and
General Packet Radio Services (GPRS) for updating the
details on the central server - Krishnagiri district (Tamil
Nadu)
Innovative Case Studies

20. 20
Hi Tech Farming
Vikas Rai – Farm at Nihal Khera Village in Punjab Fazzilka
district
 90 HP John Deere air-conditioned tractor, which he bought
in 2009 for Rs.18 lakh
 Who rotates cotton and wheat on his 150 acres
 He is now set to spend Rs. 25 lakh on a seed driller and a
sprayer
 Even as neighbors opt for Rs. 60000 seed drills, Rai is going
to buy a Rs. 13 lakh Lemken, a German brand, after he sells
his wheat crop this April.
 On one acre of land for cotton sowing, he is using four
packets of 500 grams of hybrid seed, with the new machine,
he only needs to use one packet, costing Rs.900-950 and
yielding 15 quintals per acre

21. 21
He’s targeting yields of 20quintals of wheat from an
acre
By using Lemken’s duck foot cultivator to prepare land
for sowing , he used 30% less diesel than his neighbors
at 4 liters an acre
Investing more than Rs.1crore on farm equipment
At 48 degrees Celsius in the firs week of May, it’s a joy
to cultivate land for cotton driving an AC tractor
He wears his best clothes when he goes to cultivate his
land, which only takes two hours unlike the previous
time of eight hours
Hi Tech Farming

22. 22
 Sumanta Bisui, 30 – Owner Bisui Poultry
 Learnt Poulty farming at companies such as Chakra India,
Uma Kiran Industries and Sai Durga Industries
 Key Learning - “Keeping the feed cost under control is key to
profitability in poultry farming”
 Initial capital Rs.2crore from father and friend, Term loan of
Rs.4crore, Working capital of Rs.69lakh and Bought 56big
has of land in Nuniadihi
 Bisui Poultry has 90000 layers or chickens raised for their
eggs
 Orders are also coming from traders in Jharkhand
 e-commerce platform to market my eggs and chickens across
India
Poultry

23. 23
 Jayawant Patil, 27, works in an information
technology company in Pune four days a week
 Part Time Organic Farmer
 Tending to his 2.5-acre farm about 80 km
away from Pune
 Started work on a website to connect organic
vegetable growers with customers
 To get first-hand experience to understand
these fully he got into organic farming
Organic Farming

24. 24
 The organic certifying agency, said the companies
involved in organic farming are mostly export
oriented. “The first type is of the traditional farmer
practicing organic farming to earn their bread and
butter. The second type is the increasing breed of
urban farmers, who have turned to growing organic
food as a passion or liking,”
 Marketing is the biggest challenge
 The most effective marketing channel is digital.
Orders are processed through websites, voice SMSes
and e-mails
 Future Prospect for Development - Organic processed
fruits
Organic Farming

25. 25
Aquaponics
 Vijayakumar Narayanan, 40, - returned to his native
village in Kerala two years ago after spending
20years in various jobs in India and the Gulf, he
wasn’t too sure about what to do
 Plunged into aquaponics - “Inspired from
hydroponics - Cultivation of plants without soil in
water often with the help of chemical nutrients”
 Aquaponics - Combination of aqua culture and
hydroponics and use water rich in fish waste to
cultivate plants
 This method is more organic in nature and doesn’t
involve the use of chemical nutrients

26. 26
 Double guarantee for a farmer - income through
fish and vegetables
 Though Aquaponics was practiced by the Aztecs in
Mexico thousands of years ago
 The farmer can start with 500 kg of fish in a pond
with 10,000 litres of water in about half a cent in
the backyard. (1cent = 435sq ft.)
 The investment will be around Rs.40,000/- to
Rs.50000/-
 For commercial operations, a minimum of 4 cents is
needed, along with 5000 kg of fish and 50000 litres
of water and an investment of Rs.1.50-1.75lakh
Aquaponics

27. 27
Aquaponics
 Investment can be recovered in the first six months
from the fish and vegetable harvests
 Plants are grown on sheets of gravel laid on the
banks of the pond
 Two pumps-one for blowing air into the pond and
the other for pumping water on the gravel where
plants are grown will have to be run continuously –
Electricity Cost
 Subsidy for the electricity charge from Fish Farmers
 Ammonia from the fish waste in the pond gets
converted into nitrites through bacterial action

28. 28
Aquaponics
 Nitrates aid in plant development - Leafy vegetables
like broccoli, lettuce, spinach, palak, pudina are the
best, apart from tomato, lady’s finger and brinjal
 In six months, one can get three harvests of leafy
green vegetables
 Danger - The farmer needs to fear only airborne
pests since there’s no soil involved. These can be
dealt with using bio insecticides such as tobacco
juice
 A farmer can easily get an income of Rs.4lakh or
more a year

29. Year Founder Company Business
Idea
Financing
2011 Planning
Commissio
n, IIT
students
and
Datawind
Datawind
will provide
tablets at
$37.98
World’s
Cheapest
tablet
170 IIT
Rajasthan
students
Interesting Case Studies
World’s cheapest car and now the world’s cheapest tablet PC
29

30. Year Founder Company Business Idea Financing
2008 Aneesh
Reddy &
Krishna
Mehra
Capillary
Technologies-
Successfully applied
in more than 6000
retail stores
Real time analytic
software offering
discounts to customers
while they are paying
at the cash counter
Supported by
the eCell of IIT
Kharagpur via
loan of Rs. 15
Lakhs
(US$30,000).
Now
investment by
Qualcomm
2008 Arbinder
Singal &
Debraj
Shome
Mediangels- has 6000
registered patients
Access to Super specialist
and superspeciality
Healthcare through e-
healthcare platform at a
click of a button
Rs. 2 Crores
from family
and friends and
another Rs. 2
Crores from
HDFC Bank
(US$8,00,000)
30
Interesting Case Studies

31. Year Founder Company Business Idea Financing
2007 Sanjay
Bansal
Business Octane–
Successfully having a
turnover of Rs. 55
crores (US$1,100,000)
and customers like
Vedanta, Novartis, Air
India, Agro Tech
Foods, DuPont India
and others.
Telepresence ( Low cost High
quality video conferencing)
Money saved
from working
as Management
trainee at
Godrej.
2007 Yusuf
Motiwala
Tringme-Has more than
120 clients like IBM,
Infosys and AOL and
handles 42 millions of
calls per month and
serves over 11 million
users
Applications like Gtalk,
Skype or a calling card which
does not need to be
downloaded or installed.
They have softwares that can
connect different voice
sources like web, mobile
phone, instant messanger etc.
Other softwares include Voice
PHP
Rs. 5 lakh (US$
10,000) savings
31
Interesting Case Studies

32. Year Founder Company Business Idea Financing
2007 Aditi
Vyas
Azafran Skincare-Has
a turnover of Rs. 1.46
Crore (2010) with
focus on US, Europe
and South East Asia
Organic Skin care products and
certification of the same by
international agencies. Even
farming methods certified by
ECOCERT
Funding
from parents
2006 Rohit
Singhal
Sourcebits- Have now
more than 300
computer applications
used by companies
like GE, Coke,
Hershey’s, P&G and
others
Mobile application company -
Innovative computer products
like Funbooth (make creative
modifications in photographs),
Night Stand (alarm clock),
iPhone softwares
Started from
a rented
garage.
Recently,
IDG and
Sequoia
have
invested $10
million
32
Interesting Case Studies

33. 33
1998 Raj
Sharma
Majestic MRSS Voice Call from India to interview foreign
company’s clients abroad and provide
research analysis. Today offers innovative
services like focus groups with one way
mirror facility, online focus groups, video
streaming, SMS based research, eye-
tracker, Ethno streaming and perception
analyser.
NA
1996 Kamal
Sagar
Total Environment-
Customising builtup
area upto 4 lakh sq ft per
year
Customizing Homes as per customer’s
wishes with innovative building materials
NA
1991 Rakesh
Dugar &
Hasmukh
Gada
Mitashi Edutainment-
Rs. 160 Crore entity
Gaming Consoles at low prices (Low cost
Consoles imported from China), TV, DVD
players, portable radios, wireless
headphones and other electronic gadgets
Rs. 5 Lakh
(US$10,000)
funding from
family
Interesting Case Studies

34. Venture Venture Finance Provider/ Contributor Country
527 BC Nalanda University (527BC to 1197) Kumaragupta India
518 BC Takshashila King Taksha India
350 BC
Chandragupta Mauryan Empire (350-283
BC) Chankaya (Kautilya) India
1492
Christopher Columbus expedition
(Colonization) Isabella, Queen of Spain Spain
1869 Alexandra Cotton Mill Jamsetji TATA India
1906 Xerox Haloid Corporation US
1908 General Motors DuPont (VF in 1920) US
1915
Banaras Hindu University (Oriental learning
and Theology)
Kashi Naresh and Sri RS Bahadur,
Maharaja of Darbhanga India
1919 Yarn and Jute Mill Ramnath Goenka India
1924 IBM (Punched Card)
TMC (1896), CSC(1891) and ITRC (1900)
merged US
1926 Bajaj motors (Motor Vehicles) Seth Bachhraj India
1938
Eastern Airlines and Douglas Airlines
Laurance Rockerfeller funded Venrock US
1946 Amul
Gujarat Co-operative Milk Marketing
Federation Ltd. India
1950
Share cropping farming institution
(Tobacco) Landlords and farmers India
1957 Digital Equipment Corp. (now HP)
Georges Doriot, Ralph Flanders and Karl
Compton/ ARDC US
Venture Capital
34

35. Year Venture Venture Finance Provider/ Contributer Country
1959 Lijjat Papad Shri Mahila Griha Udyod Lijjat Papad India
1960
Florida Foods Corporation (Nutritional one
minute juice) J.H. Whitney and Company US
1962 Reliance Commercial Corp. Dirubhai Ambani India
1968 Intel (X86 Microprocessors) Robert Noyce and Gordon Moore US
1977 Oracle (Database software) Larry Ellison, Bob Miner and Ed Oates US
1978 Microsoft, DOS (Disk Operating System) Bill Gates and Paul Allen US
1978 Biocon
Biocon Biochemical Ltd. (Ireland) and Kiran
Mazumdar Shaw India
1981 Infosys Sudha Murthy India
1984 Cisco (Router) Len Bosack and Sandy Lerner US
1987 Business Finance Education in India Indian Institute of Finance India
1987 3i Group Bank of England UK
1989 VLCC Vandana Luthur and family India
1992 MASTEK ICICI and UTI promoted TDICI India
1994 Amazon.com (Online Book store) Jeffrey P. Bezos US
1994 Yahoo (Search Engine) Sequoia Capital US
1996 Hotmail (Free Webmail service) Draper Fisher Jurvetson US
1997 Anant Koppar (Customised IT Services) Kshema Technologies India35
Venture Capital

36. Most Disruptive Innovations
Facebook
Google
(Alphabet)
Apple
Microsoft
Visa
Mastercard
Linkedin
Airbnb
Snapchat
Uber
Instagram
Amazon
Alibaba
Nano
Jio
Paytm
Rupay
Zerodha
Oyo OLA
Bigbasket
Flipkart
Snapdeal
Zomato
36

37. 37
Financing
A. Domestic Financial Markets:
i. Equity finance
ii. Debt Finance
iii. Domestic Capital Market
iv. Financial Developmental Institutions
B. International Financial Markets:
i. Multilateral Institutions
ii. Export Credit Agencies (ECA)
iii. External Commercial Borrowing (ECB)
iv. Syndicated Loans
v. Private placement
vi. Global Depository Receipts (GDRs)
vii. Weather Derivatives & Hybrid Instruments

38. 38
B. International Financial Markets:
viii. Private Equity
ix. Mergers and Acquisitions
Financing

39. 39
C. Internal Resources
D. Public Private Partnership
E. Forward Need Financing
This will prevent cost of capital being added to cost of
project
Financing

40. 40
Thank You