Indian Economy: News and Discussion

[mandestiny]

Population density of Nalanda : 1006

Population density of Gaya: 880

Population density of Munger :960
And these states have agri-based economy. So even if extraction starts; you understand what will happen. So big no to gold extraction

And a rich state gov doesn't translate to good hdi. Ex: you can look at Jharkhand, they are richest.

Koi nahin bus jagah pata chal jaye , army baida den ge.

 

[SKC]

Indian VC's and investors have been scammed one too many times in the past with bright ideas so what they scrutinize is a viable and sustained 'revenue model', so B2C projects which have a large target audience finds more takers.

Pvt defence sector in India was in complete shambles unless you were somebody really big like L&T or someone close to the ecosystem and were assured of orders from DPSU's or were part of that supply chain.

For a brand new innovator like Tonbo, breaking ice itself would take a decade.

ALL(Ashok Leyland Ltd) trucks were put through a 7 year trial period before orders were placed. By then, ALL had moved to newer, more powerful, more fuel efficient models. Such is the case of defence procurement in India. AVINASH4061 has already made a fleeting reference to it in the Special Forces thread.

So it is easier for a company like Merit Nation(absolutely crappy service) or Byjus White Hat Jr to raise capital because they are in the TechEd sector and generating cash flow is easy given its humongous target audience. Hire some field sales chaps at minimum wage and start snaring bakras.

Cutting edge technology particularly related to defence sector such as Tonbo finds least takers because they are considered a black hole. Indian pvt investors and VC's are very wary of cutting edge Defence companies.
It is not that VC's don't have faith in the product. They know for sure small players don't have deep pockets to bribe their way through, though their product may be quite promising or superior to the imported maal that's being ordered.

Have already mentioned in an old post how we were ousted from a DRDO project though we emerged as lowest bidders. The project was cancelled and the new one that was floated was open only to companies with a turnover of Rs. 500 crores which disqualified us automatically. Some days later, a man approached us and said he can still get the project outsourced to us if we pay him Rs. 1.5 crores. We politely declined his services.

But most of the times it is due to their own fault that these VC and investor firms get conned. They try to move their black money here and there in order to make it white and they invest in stupid new Ventures and Unicorn companies.
Current favorite is Cred app, which has no viable monetory model but each and every big VC and investor is putting their money in it and trying to make it $billion plus app. They will sell their shares once it reach its peak and then it will go bust and they all will cry fakingly that they got burned.

 

[SKC]

@Haldilal will you give some insight on shich of these startup have a opportunity and sustainable buisness model.


I think you have lot of knowledge on all these

None of these 4-5 companies have any kind of sustainable business model. Only thing to keep them up is to take more and more investor after every few months.

 

[Lonewolf]

None of these 4-5 companies have any kind of sustainable business model. Only thing to keep them up is to take more and more investor after every few months.

It.means they are bane for our economy , in long term we won't have any big company from these startup

 

[Haldilal]

None of these 4-5 companies have any kind of sustainable business model. Only thing to keep them up is to take more and more investor after every few months.

Ya'll Nibbiars these are good for Takeovern, Merger and Aquisiation's. And but don't think will become even like firms like existing startups already matured.

 

[SKC]

It.means they are bane for our economy , in long term we won't have any big company from these startup

Untill and unless any company has any concrete physical or Software based product which can be sold without giving these coupons or discount offers, no company will survive long.
All BIG TECH of US (G, MS, Apple, Amazon, Oracle, etc) have a concrete product which brings them Billions per quarterly let alone yearly (G and MS both does $30 Billion per quarter).

All our new age companies and app in India doing is trying to sell a Service rather a product in hope to become Billionaire one day. All of them have plan to become Billion dollar plus in evaluation but no plan after that for next 10-15 yrs in future.

 

[SKC]

Ya'll Nibbiars these are good for Takeovern, Merger and Aquisiation's. And but don't think will become even like firms like existing startups already matured.

yes agree, They are just making fool of VC and investors. Not a single one of them has any concrete product.
Not a single one of them is able to do $1 Billion in revenue per year. Most Big tech of US do over $30 Billion just a quarter.

 

[Chandragupt Maurya]

Population density of Nalanda : 1006

Population density of Gaya: 880

Population density of Munger :960
And these states have agri-based economy. So even if extraction starts; you understand what will happen. So big no to gold extraction

And a rich state gov doesn't translate to good hdi. Ex: you can look at Jharkhand, they are richest.

So you’re saying that gold mining will destroy the agriculture in these areas but what about mountains of gold below people of these areas should also get their share

 

[IndianYonko]

So you’re saying that gold mining will destroy the agriculture in this area

Obviously; where else would you if not farms?

You must have heard statement from previous deputy CM, Shushil Modi where he said in Bihar land is scarce. That applies here too.

 

[indus]

India shld invest in value addition industries. Mining, smokestack industries shld not be promoted in the long term. To explore gold reserves or not shld be examined with a cost benefit analysis. Rather than mining we shld invest in processing tech. Just as Surat is a big diamond processing destination. Similar approach shld be used in other metal sectors.

 

[Chandragupt Maurya]

Obviously; where else would you if not farms?

You must have heard statement from previous deputy CM, Shushil Modi where he said in Bihar land is scarce. That applies here too.

people of these areas should also get their share
afterall whatever is extracted from these districts should belong to the people living there
But if the extracted gold goes to the centre people will protest and it’s their right to protest

 

[Chandragupt Maurya]

India shld invest in value addition industries. Mining, smokestack industries shld not be promoted in the long term. To explore gold reserves or not shld be examined with a cost benefit analysis. Rather than mining we shld invest in processing tech. Just as Surat is a big diamond processing destination. Similar approach shld be used in other metal sectors.

Primary Gold ores are best quality ores and are highly concentrated with lowest impurities and are in millions of tonnes
GSI confirmed it in 2012 that most of our primary gold ores (57%) are in Just 3 Districts of Bihar. Gaya , Nalanda and Munger
I think there are more reserves in different parts of Bihar but needs to be explored
But these resources should go to the people living there not to New Delhi spending resources of Bihar all over India and forcing people of Bihar to migrate in different cities of India and abroad is criminal

 

[IndianYonko]

yes agree, They are just making fool of VC and investors. Not a single one of them has any concrete product.
Not a single one of them is able to do $1 Billion in revenue per year. Most Big tech of US do over $30 Billion just a quarter.

You are comparing apples and oranges; growing into such BIG companies will take time. Which will eventually result to multiple policy shifts.

Most of these companies are not even decade old, plus these companies have valuation above 1B$, nothing else.

And personally like this trend because these startups atleast provide some high paying jobs. Most of these startups pays more than FAANGs and US bigwigs.
Thus at end of the days, these are atleast creating more wealthy people in this country. So its a win-win situation. Only downside I see is what happened with Flipkart, they handed over a well settled business to wallmart.

P.S. : I'm not from economics;

 

[SKC]

You are comparing apples and oranges; growing into such BIG companies will take time. Which will eventually result to multiple policy shifts.

Most of these companies are not even decade old, plus these companies have valuation above 1B$, nothing else.

And personally like this trend because these startups atleast provide some high paying jobs. Most of these startups pays more than FAANGs and US bigwigs.
Thus at end of the days, these are atleast creating more wealthy people in this country. So its a win-win situation. Only downside I see is what happened with Flipkart, they handed over a well settled business to wallmart.

P.S. : I'm not from economics;

I am not comparing apple to oranges. None of these startups looks like they will become Big Tech one day in future. None have 'THE PRODUCT' with them, just masquerading services as Products.
We have already seen more than decade of startup culture in India and we have now with us only Flipkart with Multi Billion evaluation and that too has owner ship under foreign companies.

 

[another_armchair]

You are comparing apples and oranges; growing into such BIG companies will take time. Which will eventually result to multiple policy shifts.

Most of these companies are not even decade old, plus these companies have valuation above 1B$, nothing else.

And personally like this trend because these startups atleast provide some high paying jobs. Most of these startups pays more than FAANGs and US bigwigs.
Thus at end of the days, these are atleast creating more wealthy people in this country. So its a win-win situation. Only downside I see is what happened with Flipkart, they handed over a well settled business to wallmart.

P.S. : I'm not from economics;

Afaik, one of the partners wanted to sell Flipkart to Walmart while the other did not.

So he had no option but to take his share and walk out.

Smart move I'd say. Walked out with a cool billion dollars and is privately funding quite a few viable businesses.

 

[another_armchair]

I am not comparing apple to oranges. None of these startups looks like they will become Big Tech one day in future. None have 'THE PRODUCT' with them, just masquerading services as Products.
We have already seen more than decade of startup culture in India and we have now with us only Flipkart with Multi Billion evaluation and that too has owner ship under foreign companies.

Companies like Zoho, Zerodha etc have taken very little investor funding, are privately owned and continue to do well.

The final destination for most kids from IIT's are to create a start up, show cash inflow and sell the company in 2-3 years. This is a get rich quick formula cherished by most young engineers these days. Few want to pursue an original idea as it is considered too risky.

 

[another_armchair]

None of these 4-5 companies have any kind of sustainable business model. Only thing to keep them up is to take more and more investor after every few months.

The objective is to be the last man standing and eventually become the sole player in the market.

 

[another_armchair]

I am not comparing apple to oranges. None of these startups looks like they will become Big Tech one day in future. None have 'THE PRODUCT' with them, just masquerading services as Products.
We have already seen more than decade of startup culture in India and we have now with us only Flipkart with Multi Billion evaluation and that too has owner ship under foreign companies.

Swiggy, Ola, Oyo etc have billion dollar plus valuations.

 

[SKC]

Companies like Zoho, Zerodha etc have taken very little investor funding, are privately owned and continue to do well.

The final destination for most kids from IIT's are to create a start up, show cash inflow and sell the company in 2-3 years. This is a get rich quick formula cherished by most young engineers these days. Few want to pursue an original idea as it is considered too risky.

Yup , Zoho and Freshdesk are totally different kind of companies and only one with proper thingking and plan to go fight on World scale. Zoho Books is currently being used all over world from South east asia to middle east to EU and US.
Similarly Freshdesk is about to over take Zendesk in their field and is getting customer all over the world.

But again as I have pressed upon regularly, these are the company which had a concrete PRODUCT with them not some we sell you old service in new wrapper bulls**t.

About IITians too I mentioned this many pages back that their only aim is to become Billionaire or at least multi millionaire and then to spend rest of their life lavishly, no one wants to complete at global scale.

 

[IndianYonko]

Afaik, one of the partners wanted to sell Flipkart to Walmart while the other did not.

So he had no option but to take his share and walk out.

Smart move I'd say. Walked out with a cool billion dollars and is privately funding quite a few viable businesses.

More viable than online retail?
Sir, have a look.

Unicorn Startups in India | Venture Intelligence

www.ventureintelligence.com

Companies like Zoho, Zerodha etc have taken very little investor funding, are privately owned and continue to do well.

The final destination for most kids from IIT's are to create a start up, show cash inflow and sell the company in 2-3 years. This is a get rich quick formula cherished by most young engineers these days. Few want to pursue an original idea as it is considered too risky.

This is the new trend. Everyone here wanT to be a entrepreneur. In final year, I'm already seeing multiple groups forming. Here jobs in startups are prefered , for the sole purpose of learning, tips and tricks of startup. So this is just the beginning. Many more will come.