!!Virgin Richard Going Indi-Mobile!!

Corporate baron Richard Branson is bringing in the 'fun quotient' to target its 70million+ youth segment. Recently, Richard Branson launched 'Virgin Mobile' in India in an alliance with TATA Teleservices. The company is working on a 'franchisee based model' wherein the business model would revolve around 'revenue sharing' and 'payment of fixed amounts' on periodic basis to TATA Teleservices. The company is planning to make an investment of USD 1.2 billion in the next few years. However, the company is not planning to invest this amount on infrastructure setup, rather it plans to use these funds for offering distinctive value based services to its pre-defined 'youth segment' which stands between the age group 14-25 years. The company plans to create its own 'blue ocean' out of the already saturated telecom market in India by seamlessly offering great value & vibrancy. Recently launched products like VKewl & VBling offer cutting edge technology with aggressive pricing for the youth segment. Besides this, customers get 10 paisa credit on every incoming call lasting for 1minute. This is an all time extension to the Indian mobile user and telephony experience as a whole. Although, existing mobile operators appreciate this model but at the same time they are cynical about the sustainability quotient. Guys, let's see, how high this one of virgin's flies..the game has just started. I am sure loads of goodies are herein to our offering...What say you? :-)

World is coming to the TATAs!!

"TATA Motors finally got world brands-Jaguar & Land Rover"; A moment of great pride and humility for 'We' as Indians. No doubt it is absolutely a 'wow' thing, an apt of 'great misfit' for the western eyes but at the same time even the Indian markets presented their resentment towards this great USD 2.3 Billion TATA-Ford deal. As the deal was announced on Thursday, stocks of TATA Motors went down by 7.5% in the Indian stock markets. Although, the fundamentals that drove the 'bear run' over the TATA Motors stock were within expectations, analysts questioned the medium and long term feasibility of this new heavy weight TATA acquisition. According to market sources, investors were worried and speculative about TATA's ability to restore and re-inforce the fading light of 'Jaguar & Land Rover' brands in the International market. Ford (US Auto Giant) was facing tough competition from brands like Mitusubishi, Toyota, Hummer, Honda, General Motors and Hyundai within EU and US while marketing these mid-high value sedan (Jaguar) and SUV (Land Rover). The company was also facing problem with high manufacturing costs and input costs associated with the assembling of these units, raw material availibility and spare parts supplies.

As TATA takes over the management, production and operations of these brands within next 24 months, the biggest challange which the Indian industry looks at is the TATA's ability to merge the management and design & implement 'low cost production' or 'lean manufacturing facilities' to cut rising costs in the EU and Asian markets. Another interesting challange for TATA would be to 'position and market' these luxury brands in the already maturing Indian markets when companies like BMW, AUDI, MERCEDES, TOYOTA, MITSUBISHI, HONDA, NISSAN & MAZDA are already onset with their plans to roll out aggressive premium products.

All in all, I personally believe it is going to be a 'win-win' situation for TATAs and Indian investors. Guys, after all it's TATA:-)

Budget 2008-2009-Excellent Job- Just the right stimulus!!

Dear All,

Government of India recently provided for USD 13.33 Billion loan waver to marginal/small time Indian farmers in its latest 2008-2009 budget. What a bold move to be taken up by any government. I truly appreciate what GOI has done in this budget- a complete plethora of killer goodies for under performing ass clowns. Whatsoever the case may be, personally I think this budget is well settled and has mass appeal, good enough to be called as a 'politically correct' budget. If you go in for critical evaluation of this budget, there are allot many things that could be looked upon. Sectors like healthcare, infrastructure, automobile, power have really been taken up well into consideration with many sops, policy changes and taxation rebates coming their way. However, major GDP contributors like IT, Telecom and Textile sectors have not seen the 'dew fading' with limited breakthrough coming their way. I say this because we very well know that International market is really making things difficult for Indian exporters. :-). Adding more buoyancy to Indian growth story and the budget lines, with changes in individual income tax slabs, enough room has been left for Indian consumer durables and FMCG sectors to re-establish a shining shadow of their own selves in this financial year as higher IT slabs shall bring enough money for consumers to spend on consumer products, gizmos and stuff. The agriculture sector is also not far behind with major duty cuts coming its way so as to achieve an annualized growth target of 4%. These policy changes are also going to go good with agri-companies dealing in micro irrigation projects (Jain Irrigation). seeding and crop development businesses (Monsanto) companies and cold chain infrastructure development companies. On the whole, a great budget. exactly for masses. In fact, if I was there on the FM's seat, I would have walked the same road with elections hanging round the corner. I think even the Indian stock market players should retain a polarized approach on this kind of budget as they have come across an increase in short term capital gain taxes. The FM has done the right thing as it brings greater depth for genuine long term investors and curbs speculation. Guys, hats off to Shri Palaniappan Chidambaram (Indian Finance Minister)...an excellent job.

The Growth Bandwagon—Ahaa (The Flipside)

We know India is the 'Buzz' word. It’s Indian economy when it comes to Domestic & International trade in the eyes of the World economies today. India; established its prophecy by becoming a NAM member in 1979 when the world was aligning ‘Power Blocs’ that is US & Russia. With the dis-integration of Russia into 15 independent states by 1990, this era of power consolidation vaporized and US emerged as the universal world superpower.

Year 1991, India’s foreign exchange reserves reached all time low, just good enough to support Indian economy for one month (to make payments for imports). Government of India decided to go global by adapting the policy of ‘Import Substitution & Export facilitation’. These measures included combination of various procedural & policy initiatives like delicensing, privatization, liberalization and more.

Year 1995, India became a member of WTO; an interim organization which promotes ‘equality of trade’ among its member nations. India’s entrance to WTO brought in event-marked empowerment to its pre-planned fundamentals towards globalization. This further helped India in becoming a truly market driven economy from a mixed one.

21st century, India is all in the news. Our gross national product is growing @ 7.6 % since 2001 and our GDP is growing @ 8.1% since 2005. India’s annual exports have increased to a staggering USD 125 billion with a net surplus of 14%. India’s foreign exchange reserves stand at 251 billion dollars and foreign investments in the form of FDI, FII & Portfolio are reaching an all-time historical high of USD 25 billion this quarter (Q3, 07).

However, there are few contentious issues which have come along with this era of massive growth & prosperity.

The Flipside

· Growth is not inclusive, 62.3% of India resides rural.
· 3,00,000 Indian villages lack basic facilities like drinking water, electricity, housing and regular clothing.
· Primary infrastructure such as roads, schools and hospitals, are still an agony of tormented, deprived and helpless Indian minds.
· Unemployment, Under-employment & Disguised Unemployment are still bolstering features of India’s growth reality, vis-à-vis. India enjoys 50% young population under the age of 25.

There are many more things which could be added to the flipside of India’s growth story in the 21st century. Never the less, we strongly believe INDIA as a nation is poised to grow. We say it because philanthropically, even Nostradamus predicted a cone shaped nation to become a superpower and of course ‘what we see is what we hear’, Indians going global, capturing & building world benchmarks in all spheres of life. So whether it is soaring stock markets, rising mullahs (Rupee), or tensioning Indian exports; INDIA is born to win until unless another 9/11 sees the world.

Inspiration: Mr. Sushant Munjal