A Nation of Entrepreneurs

The India we are watching today is a big market, with roads full of stylish cars, shopping malls with innumerable global brands and boundless opportunities. Was this India really on similar lines before 72 years?

It was the year of 1947 when India recently got freedom from the British government. Prime minister Jawaharlal Nehru was inspired by the development of Soviet countries so he implemented socialist economy in India. The phrase “Nehruvian Socialist rate of growth” is used to refer to the low annual growth rate of the economy of India before 1991. The steel, coal, telecommunication, radio, petroleum and all heavy industries were in a public sector owned by the government of India. That era also called as Licence Permit Raj.

“It used to take us about 12 to 24 months and about 50 visits to Delhi to get license to import computer worth $1500.”
– Narayan Murthy on License Raj

The idea of government restricted foreign companies entry in the Indian Market but that notion also handcuffed Indian entrepreneurs. Also, enterprises like Mahindra & Mahindra, Hindustan Motors, Tata, Dabur, Godrej, who were growing in the market, were tied down. Government had control over every aspect of each company which restricted the growth of business and hence Indian economy.

“Never talk to me about profit, Jeh, it is a dirty word.”
- Nehru, India’s Fabian Socialism-inspired first prime minister to industrialist J.R.D. Tata, when Tata suggested state-owned companies should be profitable.

The correct time of Indian entrepreneurship started growing after the liberalisation of 1991. Finance Minister, Dr. Manmohan Singh, opened the doors of India for foreign investments and reduced the regulations on businesses which helped Indian Economy to speed up in a way like it never did before.

Some giant companies we see in India are considered as a children of liberalisation. Let’s take thel example of Infosys. In the first decade of its existence, from 1981 to 1991, Infosys grew to less than $5 million. In the 20 years since liberalization began, the company has grown to become a $6 billion-plus entity, and one that is well established in the global arena.

“We got government off the backs of people of India, particularly off the back of India’s Entrepreneurs. We introduced more competition to release the innovative spirits which were always there in India. The economy turned around much sooner and much more deeply than I had anticipated.”
– Dr. Manmohan Singh after economic liberalisation

There are various entrepreneurs who has key role in building this economy. J.R.D Tata, Sunil Mittal, Dhirubhai Ambani, J.C.Mahindra, Narayan Murthy, Jamnalal Bajaj, Shiv Nadar, Kiran Shaw, Ardeshir Godrej, Mohammad Premaji and many more industrialists helped India to set up a global rank. The same spirit also continues with Indian entrepreneurs of new generation like Sachin Bansal, Vijay Shekhar Sharma, Deepinder Goyal, Bhavish Aggarwal and the list goes on.

The growth of Entrepreneurship in India continued year by year. Prime minister of India, Mr. Narendra Modi had announced the campaign ‘Startup India’ on 15th August 2015 at the Red Fort, exactly 3 years before. Currently, India is standing at 68th position in Global Entrepreneurship Index. The scenario of Indian Entrepreneurship is not so good but there is a silver lining which makes Indian entrepreneurs stand firm again.

Looking at India, unemployment is really a great issue for our youth. According to the statistics of Center for Monitoring Indian Economy (CMIE), 31 million youngsters are jobless. Even the 60℅ engineers are unemployed in India as per AICTE. Jobs in MNCs and settlement is always priority for the graduates of our nation. Is this the most optimistic road for Financial Independance in India?

Entrepreneurs are important in any economy because they create employment, generate new ideas and implement new techniques in management functions. Entrepreneurs will increasingly contribute to India’s GDP and also have a greater impact on socio-economic fabric of the nation. We heartily salute these nation builders on this independence day.

It’s been an honour for Entrepreneurship Cell VJTI to announce theme of this year as ‘A Nation of Entrepreneurs’. We will put forth many great influencers of this great nation in front of you along the year. E-Cell VJTI is really glad to be a part of building a great nation of entrepreneurs.

Happy Independence Day!

– Lalit Jadhav

The breathtaking achievement of ISRO

We don’t have the best technology in the world, but we have some of the brilliant minds working hard to put India among the top space agencies. Launching of 104 satellites with a single rocket, Mangalyan-The Mars mission, the glory for India which made India the first Asian nation to reach the Mars orbit, and the first nation in the world to do so in its first attempt. Only Indian’s can do it and directly can ISRO do it.

Indian Space Research Organization was founded in 1969. ISRO supplanted the past Indian National Commitee for Space Research(INCOSPAR) which was founded in 1962. In establishment of the ISRO there is a lion share of The Padma Bhushan “Vikram Sarabhai”. He is an Indian scientist and innovator most popularly known as ‘The Father of Indian Space Programme’. He was the first chairman of INCOSPAR, which later came to be called as ISRO. Actually, Space research in India began in the 1920’s with studies conducted by scientists S .K Mitra, C. V .Raman and Meghnad Saha. However, it was only from the 1940’s and 50’s that institutionalised probe into space related activities started gaining nationwide attention. At this point, space studies in India were restricted to aspects of Earth’s atmosphere, weather prediction and the surrounding magnetic field. History of space activities in India reached its first milestone in 1962 when Pandit Jawaharlal Nehru along with scientist Vikram Sarabhai established the Indian National Committee for Space Research (INCOSPAR). Following the establishment of the INCOSPAR, the first rocket launch from India took place in November 1963.

Today ISRO has achieved unexpected success in all over world. We can say that ‘It has climbed mountain, just in some time. ‘Vikram Sarabhai, Prof.Satish Dhavan has put their hands in establishing ISRO. Considering the achievement made by India in the field of Space technology, the best approach for the country is to allow only Indian registered satellite system i.e, setellites that are coordinated internationally through the Union Government to operate over India.

The first ever achievement for ISRO was in 1975, Launching of first ever settallite ‘Aryabhatta’. In 1983, first lunar mission – Chandryaan – puts India in an elite club of six nations. In 2014, ISRO had a successful mission to Mars. which cost 10 times less than the same mission undertaken by the US previously. And because of only ISRO, today we have our own navigation system IRNSS. Recently, ISRO successfully tests GSLV MK3 to enable India to send man to space by 2020.This achievements of ISRO are heartbreaking. Mission to mars Mangalyan was the unbelievable success of ISRO.

In the Kargil War, India didnt have its own GPS system and because of this it brought lots of trouble to India. Hence, from that day, Goverment of India took his foot to achieve its own GPS system. And now today, because of ISRO India have its own GPS system called ‘Indian Regional Navigation Satellite System’,IRNSS.

Work Area:

Crew vehicle development
Technology demonstration
Astronaut training and other facilities
Major Accomplishments:

Chandrayaan-1: First mission to moon
Mangalayaan: Mars Orbiter Mission
Recently, they launched PSLV-C36 which deposited a record 104 satellites into space.

So, Today we salute Padma Bhushan Dr. Vikram Sarabhai because of him today, ISRO is in the top six Space Agencies in the world, according to the Forbs.

– Yash Patil

Zomato

Do the difficult things while they are easy and do the great things while they are small. A journey of a thousand miles must begin with a single step. – Lao Tzu

While returning from a restaurant which I had recently discovered through an app, out of sheer curiosity I researched about it on my way back home. What really excited me about this mighty billion dollar unicorn club Member which has its empire spread globally across 24 countries and 63 cities in India as of now and is persistently enlarging, was the necessity that Led to its birth. It has been working flawlessly well since past a decade and certainly will for decades to come ..
You got it right – I’m chronicling about Zomato !!!

THE JOURNEY BEGINS
Founded by IIT Delhi graduates – Deepinder Goyal and Pankaj Chaddah, the distinguished Zomato of today was
“foodiebay.com” back then in 2008.
The journey of foodiebay started when Deepinder observed the hours people in Delhi had to sacrifice just to recieve the menu at the food court. He made an effort to solve this problem. Deepinder along with his wife and her sister used to drive around the city, collect menus from restaurants, scan them and put them online. They would get about 25 visitors everyday, and also received occasional feedback from some of these users that foodiebay was great, and scanned menus (to order food easily) were one of the best things that ever happened to them.
Pankaj having had a glimpse of this, helped Deepinder triple the traffic to foodiebay. Since then Deepinder along with Pankaj began building foodiebay. At that time these young guys had no intention of what it was going to become eventually but they never looked back since then.

FUNDING & NATIONAL EXPANSION
Foodiebay was renamed Zomato in November 2010 and after bootstrapping for almost 2 years, raised it’s first funding from “Info edge India” worth approximately USD 16.7 million which also gave it a 57.9% stake in Zomato .
Zomato also started expanding itself nationally in Bengaluru, Pune, Chennai, Hyderabad &Ahmedabad along with smartphone applications and it’s site dedicated to foodporn, “zomato.xxx”.

TAKING ZOMATO OVERSEAS !
“Instead of being same geographically and learning new businesses, we decided to take the same business to different geographies” – Deepinder.

This decision led to Zomato’s expansion overseas by late 2012 and had expanded to almost 12 countries by 2013. It raised USD 37million in November 2013 from Sequoia Capital & Info edge (India).

GLOBAL ACQUISITIONS
Zomato’s very first acquisition deal was for Menu- mania, NZ. This was followed by many acquisitions worth millions in several other countries and cultures.
The prominent acquisition of Seattle-based food portal, Urbanspoon led to entry of Zomato in US, Canada, Australia which exposed it to the competition with Yelp, Zagat & Open Table. This made Zomato spread across innumerable cultures.

WHAT MADE ZOMATO TO BE A LEADER IN MOST OF THE GLOBAL SPACE IT’S IN?
By the year 2016 Zomato was the leader in 18 of the 23 countries it was in..!
“The fundamental model of our business is that in mature markets we should make profits and they shouldn’t need any more outside money to grow”- Deepinder

It’s a difficult task to blend into various cultures and there’s a certain way in which Zomato performs in global space. They believe in a concept of finding really great people & getting the top 1% of employees right. That being said so, they also consider their targets as moving targets and they’re always “1% done”.
Zomato’s CEO Deepinder says that he’s highly realistic & recommends entrepreneurs to rely on themselves and not solely on the funding.
‘Also One of the core ideology of Zomato is buying a monopoly in the market and turning all the traffic to Zomato’.

HOW DOES ZOMATO MAKE MONEY?
Zomato makes money through 4 revenue streams:

1) Restaurant advertising: this is the banner ads for restaurants placed on the website. This accounts for ~75% of Zomato’s revenue.

2) Event advertising: this is when specific events promote an event on Zomato – this revenue primarily comes from restaurant based advertisers. Typically, tickets for these events are also sold on Zomato. This accounts for ~5% of revenue

3) Event ticket sales: commissions on ticket sales through Zomato; primarily for restaurant venues; accounts for ~15% of revenue.

4) Consulting services: Restaurant chains ask Zomato for advice on where to open their next outlet/branch. Zomato then digs through terabytes of data to tell them where the demand lies and what’s the competition like.

So far I feel you’ve got a glimpse of how this website start-up which was intended solely so that people in Delhi can have menus on their phone flourished into a revolutionary global restaurant search and discovery portal with orders in scales of millions per month.

It’s been an honour for me to present this fascinating journey. I along with all other students & budding entrepreneurs congratulate Zomato for its success and wish it good luck for it’s future endeavours.. !
Thank you.

– Harsh Panchal

The Unpredictable Economy

  • Yo

My mornings seem bland without having a gist of “THE HINDU “. So on a sultry June, I was reading the editorial section and my sight fell on a particular article saying ‘The currency had weakened past 69 intraday against the U. S. Dollar ‘. Well, it took me few days to understand it, I googled everything and came across many enigmatic words, one of which was ‘inflation’.

Inflation means the increase in prices of products or services and the decrease in the purchasing power of money. For example, a chocolate today costs Rs. 10 but in the past it used to cost Rs. 5. So, as the price increased the purchasing power of rupee reduced.

Now, what are the causes of inflation:

1)Demand supply inflation

Consider a book, if its demand is for 1000 students and supply is only of 100 books then manifestly the price of individual book will have an increment compared to its earlier price. Evidently it has caused an inflation because the price of the product has increased.

2)Cost-push inflation

Consider the same example as above, let’s suppose its price earlier was Rs. 150, but due to rise in manufacturing cost the book price will eventually cost Rs. 200. Seemingly, it has caused an inflation again.

3)Monetary inflation

Well, it’s quite interesting. If the government prints more money than the required currencies for circulation, then people will have more money, looking at it manufacturers will ponder to increase cost of products. Patently, price of product has increased and purchasing value of currency has decreased, provoking monetary inflation.

 

When I was a tiny tot, I used to wonder that if there’s so much poverty issues in our country then why don’t our government print ample amount and distribute it to all ?

Let’s see an example, consider  A, B, C each having money Rs 500, Rs 300, Rs 100 respectively. Also consider there’s a granary shop having 90kg rice selling at Rs 10 per kg.  So the peak kgs of rice brought by A, B and C are 50, 30 and 10 kgs.

Now, if it all goes according to my question and government decides to distribute twice the currency to three of them, then A, B and C will have Rs 1000, Rs 600, Rs 200. Perhaps on the other side as the shop still has 90 kgs of rice, the owner might probably think of incrementing the rate to Rs 20 per kg. Again if we find maximum kgs of rice purchased by three they are exactly the same as that of earlier scenario.

It concludes that printing more currencies won’t solve the problem, infact it might give rise to an inflation. Limited currency will stabilize more of the market price. There will be an economic growth only if there is growth in production.

Another term opposite to inflation is deflation. Deflation means reduction of the general level of prices in an economy. There are two reasons that primarily contribute to deflation. Firstly, increase in supply and secondly fall in demand or both. Inflation does less harm to the economy than deflation, reason being that when prices begin to fall after an economic downturn deflation may set in causing an even deeper crisis. Demand drops and unemployment increases. A small amount of inflation is good for economic growth, around 2-3%. But Indian Rupee has reportedly crossed the safe line leading  its way to the downfall!

–  Kanupriya. V. Shelke