Contents From The Editor 3
Impact of China’s Economic Meltdown on Make in India Operation
TATA’s and the Entrepreneurs
4
6
ME GANG! Share Your Knowledge 8
A First Generation Entrepreneur 11
E-Waste recycling 13
Adani’s adventure in Australia 16
INCUBE The Essence of Maçon 18
What is TED?so it’s 20
Indian enterprise and the difficulties to India’s development
22
GST-The Revolution 25
FROM THE EDITOR
Editorial Team
Dear readers,
Omkar Tawade
It’s a known fact that India, today, is an emerging economy that is destined to achieve milestones, on various fronts, in the near future. However, for India, to acquire the status of a “developed” nation, it needs to create 100 million jobs, statistics point out!
Budhaditya Mukherjee
Experts confirm, in an endeavor to achieve this mark, tapping the potential of the unemployed and exploring opportunities in the employment market, so that each and every person plays a crucial role in contributing towards the growth of the Indian economy is necessary. However, how can one create 100 million jobs? And the million-dollar question is which industry will absorb people and bridge the employment gap? While experts are busy contemplating the possibilities of the army, the railways, the government and the private sector to recruit, speculations about the difficulty in employing in such huge numbers continue to persist. Standing on this viewpoint, We are glad to introduce to you the November edition of the l’entrepreneur , the most coveted magazine of IBS Hyderabad. We are here with updated version of our bimonthly magazine wherein we introduce the interview section as well to give the perspectives of well-established orators and entrepreneurs from the start up industry. Also we have taken initiative to give an insight to show the working ofMAÇON through the incube and ME gang sessions conducted and the learning process of the maçonites. Along with the new addition we have also continued the old approach of enlightening our readers with articles spanning across different streams, with main focus on GST. The Indian economy is fast undergoing changes with Indian multinationals going abroad and trying their luck. The impact of slowdown of China’s economy on the Indian startup ecosystem is taken into account with consideration to various parameters. The compilation of the magazine has been possible due to the numerous efforts by the maçon editorial as well as the IT team. Special mention and applaud goes to the junior maçonites who have worked day in and day out under the guidance of senior maçonites to make this edition a success. We hope this edition creates value to our ever increasing reader base and adds to their knowledge bucket! Happy Omkar Tawade Editor in Chief
Ashay Deshpande Harshvardhan Singh Krati Shrivas Vaibhav Gupta Dibyendu Saha Laasya Depur Sunny Desai
Creative Team Arunbalakrishnan Rahul Bongoni Subin Domini Manikanta Gudipati Iniyan Olivannan Usha Mannam HarshVardhan Solanki
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Among celebrations there will also be a couple of despondencies in the Indian arena – mainly for automobile manufacturers. Indian automobile giant Tata Motors had a huge dependency on the Chinese markets as well as they were investing in the nation as it was their fastest growing market. Auxiliary suppliers of vehicles will be doomed since consumption of China falls.
Impact of China’s Economic Meltdown on Make in India Operation ASHAY dESHPANDE
Y ou must have definitely heard over the
talks, read the news, observed a #trend on Facebook or just happened to be impacted by China’s financial crisis. Yes, indeed the Chinese Dragon is running a bit out of fire and it has had its effects on the global market. China, considered being one the foremost emerging economies, (in fact it’s currently the world’s second largest economy after the United States) had anabysmalstock market crash with quite a few factors ascribed with it. China threw a hefty impression on Singapore, Hong Kong, Australia (fall in prices of the Australian Dollar) and lastly, its actions did touch India as well. It is certainly arrived as a shock since from 1990 till 2010 (for three decades);China had upheld an average growth rate of
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more than 10 percent. Thereby, observing a growth rate of 7.4% does people – and by people we mean the financial analysts, economists and for that matter even the mob, to come up with manifold predictions about China’s future. Likelihoods include both optimistic and pessimistic perspectives; however no inference can be drawn out at this point. But, we aren’t here to converse upon the future of Chinese economy; we are here to discuss what India benefits out of this consequence. As we all know, India has been trying to recuperate its manufacturing sector and follow the ‘Make in India’ policy which would eventually attract foreign companies to invest in Indian markets. This provides a substantial impetus to the initiative of the NDA government. It can now be perceived that doing Business in India would be valuable and profitable. The primary question popping in your minds will certainly be HOW? How is India a better place to do business? There clear answer here is fall in commodity prices. Indian Entrepreneurs have an added advantage of low cost of production which can earn them better profit margins.
an amazing sense of rumour. However official it may sound, the occurrence of the same will establish its existence.
India at this moment must grab this opportunity to its fullest potential and develop itself to be the number one global exporter. This will affect the growth of SMEs as well as start-ups of the nation. It is high time that India stops dwelling in its domestic market and aims for international strata. Also, can mobiles be cheaper now? This Awaiting the passing of the GST bill, India impact will be evident from the govern- can acquire newer industrial horizons and ment’s stroke in the forex market. The Yuan mark several new benchmarks. India – the which also trades on the New York cur- world awaits your Industrial uprising! rency exchange met a three month low on uncertainties that the market breakdown will sway the economy. If the Chinese bureaucrats do undervalue their coinage to thrust development, world markets will be overflowing with cheaper Chinese goods thereby affecting exports in India. India, although is an emerging economy which can turn into world’s largest few years down the line, isn’t quite an export dynamo. For years and years, the development in India has been a result of the domestic demand unlike China which manufactures to simply ship it abroad. Nonetheless now, India too can be in the position of being an export powerhouse. India will produce goods and other nations will depend on it. Start-ups in India specially are enthusiastic about this change in the scenery and are looking forward to an Industrial revolution occurring in India soon. Initially the world was hooked on to China for imports – this can be turned around as India can be the new replacing giver. This intricate network of interconnectedness amidst a slowing China and a strengthening India is being observed by India’s government upon which they need to implement just one major element. And this element is to get a quality goods and service tax (GST) bill passed as soon as possible. It is being said that GST will hit Indian markets soon but incidentally, Indians have
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Snapdeal, one of the largest horizontal online retailers in India came under his observation and interest. Currently it has Wipro’s Azim Premji as a shareholder. Tata is believed to have invested an amount of approximately five crores in Snapdeal, buying a total of 256 shares from its angel investors which included Kenneth Glass. Blue Stone, the online jewellery retailer is another example, which was founded by two IIT graduates Gaurav Singh Kushwaha and VidyaNataraj. Currently Blue Stone is valued at rupees 135 crores, when funding was raised by Kalaari Capital and the Tata’s. This Bangalore based company is currently in news to raise another amount of 20 million dollars.
TATA’s and the Entrepreneurs HARSHVARDHAN
The name needs no introduction. TATA is a
worldwide known brand. It’s a brand that carries its legacy in whatever they merge, acquire or invest in. They are amongst the few in thousands who share the idea of giving back to the society or in other terms serving the people. We are well aware of the TATA’s buying the very famous Jaguar and Land Rover from Ford and also the collaboration with Starbucks, but there are some start-up investments which are done in their very own personal capacity. Yes there are a total of 14 start-ups investments done till date since the year 2012. It all began when Mr. Ratan Tata stepped down from his responsibilities in the TATA group and started investing in young entre-
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preneurs. He wanted to reach out to people with whom he can share his expertise and tremendous knowledge from his vast experience. The only reason being that he wanted to give a strong push to the budding entrepreneurs, knowing that there is a huge potential of growth in different sectors in India and also it will be a major boost for the Indian economy. The unique feature of this investing feature was that he did not restrict himself to just Indian start-ups but also laid eyes on the foreign start-ups.
The companies which are funded and Invested by the Tata’s share the same ideology as the Tata group. Being upfront they risk their own reputation and their brand. What we can cater from the activities is that the start-ups not only require the idea but also the investments and more importantly the guidance and expertise of someone well aware about the market scenarios and situations. India’s immensely and rapidly growing startups are in immense need of mentoring, so that they can scale their ideas to perfection and are able to solve complex market problems.
Urban Ladder, Car dekho, Swasth and India are another examples where Tata has invested and the start-ups are blooming. Urban Ladder which is another Bangalore based start-up from IIM Banglore is currently the hottest E-tailer in its own segment. Similar is the case of Swasth India and Car Dekho which are flourishing in a highly competitive market. Xiaomi, the Chinese cellular company which had entered the Indian market last year, has come under lime light and is an instant hit. Founded by Lei Jun, Xiaomi is currently the most valuable privately held start-up.
The fourteen start-ups wherein the TATA’s have invested in are Hola Chef which is the latest one, Urban Ladder, Swasth India, Blue Stone, Snapdeal, Altaeros Energies, Car Dekho, Grameen Capital, One97 or commonly known as Paytm, Xiaomi, Karyah, Ola, Ampere and Infinite Analytics. Many of these start-ups were incubed from various Business Schools and Universities. For an instance Altaeros is a Boston based (MIT Massachusetts Institute of Technology) company founded in 2010, which intended to commercialise the world’s first airborne turbine.
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One can start an insurance company, but there are some problems to be faced like Products strategy and design, Cost, Taxation, Distribution, Prospects and challenges of various channels, Compensation, Customer service, Governance and regulatory issues.
The team inspired the cell members by telling them how one can be a part and achieve success in the industry.
Insurance sector is a growing sector in which India can achieve a lot of success and earn profits. The budding entrepreneurs in India should be encouraged to move toward s this sector so that India can be insurance never becomes an Achilles hills for any Indian.
ME GANG! SHARE YOUR KNOWLEDGE Krati insurance as A contract/policy in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. They also mentioned about the major players of the insurance sector being SBI mutual funds, ICICI Lombard etc. The team focused on how to be an entrepreneur in the sector and what problems does one faces while starting an insurance company. The main points to remember while starting an insurance company are: Once we decide to do something, we can go miles ahead! INDIA needs entrepreneurs for a better economic development and MEgang classes are those classes where all budding entrepreneurs come together to learn about entrepreneurship in different sectors like insurance, advertising, hospitality etc. Me gang sessions are conducted every Wednesday at 6:30 pm in IBS Hyderabad. The first me gang session of this semester was conducted on the insurance sector in which the team introduced the cell members about the sector. The team defined 8 • L’ENTREPRENEUR - IBS, Hyd
• A paid-up equity capital of a minimum Rs. 100 crores • In the case of a re-insurance company the minimum paid-up equity capital will have to be Rs. 200 crores (Sec. 6 of the Insurance Act, 1938) • Four kinds of entities who can enter into business of insurance namely, (i) public companies; (ii) cooperative societies; (iii) foreign companies operating through a branch and (iv) statutory bodies established by the Acts of the Parliament • Health insurance company is required to maintain an equity capital of Rs. 50 crores
The second ME gang session covered the ADVERTISING SECTOR.The future entrepreneurs were told about how to establish themselves in the advertising sector. The team also mentioned about the start-ups in the sector likeOgilvy & Mather, JWT HindustanThompson, DDB Mudra Group etc. The team also mentioned about different fields of marketing like B2B, B2C marketing etc. The budding entrepreneurs were also told about surrogate advertising and the digital revolution which is taking place all around the globe, and how can they be a part of this sector. The team were also informed about Laws governing media and advertisements: a.The Press Council Act,1978 b.Cable Television Network Rules, 1994 c.Electronic Media Monitoring Centre (EMMC), etc
The third session of ME gang was conducted to tell the cell members about the HOSPITAITY INDUSTRY. The industry has 6.3% share in the GDP of the country and gives employment to 9% of the total employed population.The factors for the growth of this Industry are: 1. Rising household income. 2. Rising niche tourism 3. 100% FDI investments 4. India being the top 5 destinations as per Lonely Planet The cell members were then informed about the difference between a start-up in the industry and a franchise and were told the pros and cons of both the models. The major benefit of start up is that we are saved of the cost of having the franchisee benefits and also we do not have to abide by their rules and policies. The presenters also explained about THE VARIABLES THAT EFFECT FOOD AND BEVERAGE SERVICE, majorly being: • Economy • Legal changes • Technology • Competition
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The presenters also mentioned about the laws ME GANG sessions are conducted for the budand policies for establishing a start-up in the ding entrepreneurs so that they can learn about industry, the laws are: different sectors and how can they implement their ideas in the specific sector and be a part of 1. Food safety license the growing economy. As our Prime Minister 2. Health/Trade license Mr. Narendra Modi says “WE DO NOT NEED 3. Eating house license ACTS BUT ACTIONS”. And so for performing 4. Liquor license actions entrepreneurs need to be trained and 5. Fire Department ME GANG is acting as a link between the bud6. Pollution certificate ding entrepreneurs and their future world. 7.Lift clearance 8. Music license 9. Certificate of Environmental Clearance (CEC) 10. Insurance: You can consult any insurance company for these insurances: a. Public Liability b. Product Liability c. Fire Policy d. Building & Asset There are other insurance policies also which are not mandatory but useful. 11. Shops and Establishment Act 12. Signage license Different sectors of the hospitality industry which were discussed are • Travel and Tourism • Accommodation sector(hotels, hostel, resorts etc.)
a First Generation Entrepreneur VAIBHAV
The presenters then mentioned about some successful startups like hello curry, mealnut. com, ginger hotels, Oyo rooms and mustseeINDIA which inspired all the future entrepreneurs towards the hospitality industry. Whenever we hear the word “Explosives”, many thoughts haunts our mind. The agitation world is going through, the bomb blasts or expected World War III !! When energy was discovered with years of experiment and hard work, it was expected to positively. But due to emerging need of security and game of power, equations are changed completely. Everyone forgot that “with great power comes great responsibility”. Dr. A N Gupta, a gold medallist from Mining Geological and Metallurgical Institute of India, started following his dream when he decided to start his own company Premier Explosives Limited in 1980. Before PEL was 10 • L’ENTREPRENEUR - IBS, Hyd
started, Mr. Gupta was working in a mining company where he gained excellence in the mining industry and explosives that were required for blasting in mines for the extraction of mineral ores. Entrepreneurship comes with opportunity. While in office, he faced a critical situation when there was strike in the explosive producing firm & delivery of explosives was not in time which held up the whole process. Due to emerging necessity, Mr. Gupta was suggested by his immediate boss that he can produce explosives by starting his own company and then he can supply it to them. With his entrepreneurial instinct, Mr. Gupta grabbed the opportunity and Premier Explosives Ltd was born. Many of us might think why “Premier”? Funny incident is that, since he had to present the plan to his boss, he just picked up some name from a calendar hanging opposite to the wall. Sometimes it’s cool not being serious all the time. Right? Premier Explosives Limited (PEL) is into manufacturing of bulk, slurry and emulsion explosives. They started with basic slurry explosives and added detonators, bulk explosives and detonating cords among others to its product range over the years. PEL L’ENTREPRENEUR - IBS, Hyd 11
PEL manufactures complete range of explosives and accessories. PEL is one of the major companies in the domestic market with the entire product range of explosives and blasting accessories, catering primarily to the mining sector. In addition, PEL is also exporting its products to other countries including Greece, Jordan, Yemen, Bahrain, Thailand, Singapore, Philippines, Malaysia, SriLanka, etc. While starting PEL, Mr. Gupta never imagined that one fine day they will be catering their services to India’s Defense Research Development Organisation (DRDO). PEL became the first private company to get the DRDO contract to manufacture solid propellants and other specialized products for the Agni and Aakash missiles. It’s also the first company in the world to produce safer and greener NHN (Nickel Hydrazine Nitrate) detonators on commercial scale replacing ASA (Lead Azide, Lead Styphnate and Aluminum Powder) detonators. Premier Explosives Ltd (PEL) won the ‘Defence Technology Absorption’ award for 2007 from The Defence Research Development Organisation (DRDO) for its efficient supply of explosives and solid propellants. Chairman and Managing Director of the company A. N. Gupta received the award from the Prime Minister in New Delhi recently. Another great achievement is for FY14, PEL achieved a turnover of INR 1454 million and profit after tax of INR 92.1 million. One of the challenges faced by him is the deadly accident took place at factory in Peddakandukuru, that changed everything. Two of the workers with 20 years of experience died in an explosion and six others had been injured. Company lost production of about 30 million detonators in that financial year. With the internal research they found, the main reasons for accident was ASA or lead Azide, lead Styphnate and Aluminium powder, a highly sensitive component, which is used as the primary explosive in the production of detonators. Premier was also using ASA because of absence of other reliable alternatives. But after this incident, things change. With the R & D team, Mr. Gupta started focussing more on the alternative molecule called NHN or Nickel
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Hydrazine Nitrate to replace ASA in the manufacturing process. The challenge in this stage was that this chemical has only been tested at lab scale and no one in the world has used it on a commercial scale. But they took it up as a challenge. They built new facility for manufacturing NHN detonators. There were two challenges before R&D team of PEL—the synthesis of NHN and the production of detonators with NHN as primer. While they started synthesising NHN using the technology from Vikram Sarabhai Space Centre, Trivandrum, they found that the output was very low on sensitivity. R&D team continued its trials to improve the sensitivity of the product and developed a method to manufacture a 5kg batch of detonators. This final formula that came out was totally different from what the company had started with. As for the production of detonators, we had conducted several trials to make a reliable detonator with NHN in place of ASA by changing process parameters. They, finally, perfected the process of manufacturing all kinds of detonators with the new component NHN in the allocated time, without any major changes to our present infrastructure. Even though company had to forego some revenue in 2012-13, within the first two months production came back to normal levels in FY 2013-14. Today, PEL have a product which is much safer and technically better than the previous one. NHN assures safety in production to both human lives and physical assets. NHN detonators are safer, do not have any lead content, generate fewer effluents and are less harmful to the environment. Since company started using NHN as a primer charge in the detonators, they have produced more than 20 million detonators. It’s proud to know that they are the first company in the world to have accomplished this enormous feat and they have already applied for a national and global patent for the same. With this I think Mr. A N Gupta justified what it takes to be responsible when you have great power. Its true “with great power comes great responsibility”.
E-Waste recycling DIBENDU
With every passing day, we can be sure of atleast one thing. That technological advancement never stops. It is forever improving and newer more innovative products are always being sought out. With growing technologies, supported with higher disposable income, we run after better and improved gadgets. But what becomes off the old outdated ones? We simply throw them away, be it a used battery, or a burnt out circuit or an overloaded cooker. We pollute our own cities, not knowing the consequences of throwing away an electronic containing a potentially hazardous chemical. Entrepreneurs saw this opportunity and thus raised a new industry, the E-waste management sector.
On the road to E-waste recycling ... Electronic waste or in short E-waste are all those discarded devices like computers, mobile phones, A/V devices such as walkman, television sets, speakers and amplifiers, air conditioners and refrigerators, etc. And when we dispose of these devices, we are also throwing away hazardous chemicals like lead, cadmium, mercury, beryllium, etc that have a high risk of polluting the air, water, soil. Many developed countries in-fact prohibits this hazardous waste from being processed in ordinary waste streams. And safely disassembling them is also quite expensive, which is why they outsource it to other countries with lower labour costs and lax environmental regulations towards “recycling”. Here countries like China came in. They took advantage of the situation and became the e-waste basket for the world. They got access to all outdated tech gadgets pretty easily, which they recycled, reprocessed and returned to other countries as newer “Made in China” electronics. Though the materials get recycled, the actual work is pretty dangerous and dirty, and does exact a steep environmental toll if not handled correctly.
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India pre 2014 was plagued with steep inflation and witnessed a slowdown in the economy. Naturally consumer expenditure in electronics also took a toll. Now the economy is recovering and is on the road to stable economic growth. With rise in disposable income among consumers, there is a boom in the sales of electronic products. India currently stands amongst the top 3 mobile markets and a hot destination for investors, especially with the “Make in India” tagline. BMI forecasts a 6.7% increase in total consumer spending in 2015 on electronics and also expects to hit USD90.3 billion by 2019.
Since the E-waste industry is still a new industry in the country and a major share of the waste recycling is done by the unorganised sector, there is a big opportunity for fresh investments into this segment. In this industry, it is necessary both to have a supply of incoming material to process and also a destination to send the valuable recycled material after recovery. Even today most end users would dispose off their e-waste to unorganised sector for quick cash. Currently over 85% of the total e-waste still goes to this unorganised sector. It proves hazardous in the following ways:
With the advent of mobile smart gadgets, many of the old technologies are becoming obsolete and are on their way to being disposed off completely. And for all these reasons we see a spurt in growth of E-waste recycling companies, especially with the rules placing the onus on producers and bulk consumers for safe disposal of used gadgets which came into effect from May 1st, 2012. The new opportunities have boosted investor sentiments across the sector with fresh capital being pushed into companies like Attero Recycling, Karma Recycling, etc. A shift to organised recycling from neighbourhood “kabariwalla” created this wave of opportunity for the industry. The law has made producers as well as bulk consumers to look for recyclers who are licensed and are known for green recycling. 65 cities generate more than 60% of the total E-waste in India. Among the top ten cities generating E-Waste, Mumbai ranks first followed by Delhi, Bengaluru, Chennai, Kolkata, Ahmedabad, Hyderabad, Pune, Surat and Nagpur.
Thus biggest challenge to the organised industry is to attract customers. Many companies are coming up with coupons, even providing smart phones and other devices depending on the condition of the e-waste the consumer is recycling. Also they provide certification to producers that their waste was collected and disposed off in accordance with all applicable laws, thus improving their corporate social responsibility status. One of the major concerns for organisations is their data which is stored in the e-wastes they recycle. They are apprehensive of how the data might leak to their competitors. Thus the recycling companies needed to convince them of safe and total data removal. They guarantee organisations that their data will be properly disposed off adhering to all security protocols, thus safeguarding their interest against identity theft and other cyber attacks which was one of their prime concerns. One of the biggest benefits of working in this industry is the service it provides to the growth of the economy. It provides a valuable alternative source of primary materials for other industries. The benefits of recycling are immense and it is just a matter of time, the population at large starts to recognise the use of this industry and actively utilizes their service. Even outdated electronics have a place in the new world.
Storing of E-waste in landfills – environmental and health hazard Incineration – environmental and health hazard Reusing and recycling – Limited life span, hazardous in unorganised sector
The unorganised sector mainly consists of urban slums where recycling efforts are carGlobally over 50 million tonnes of E-waste is ried out by unskilled employees using the generated and disposed off each year. And the most rudimentary methods to reduce costs. composition of this E-waste is approximately: The workers face dangerous working condiIron and Steel – 50% tions as they do not follow even the bare miniPlastics – 21% mum safety protocols. Very often child labour Non-ferrous metal – 13% is used to separate out parts, while nitric acid Other toxic chemicals such as mercury, arse- is used on circuit boards to remove gold and nic, lead, etc – 16% platinum.
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300 km railway line for carrying the coal to the selves or we can wait for a solution to which ports. This itself costs approximately $6.8 bil- both the nature and humans can agree. lion project. Adani is now even ready to work with the rivals on Australian coal rail. India too has conveyed its disappointment over the very same issue. Navdeep Suri, the Indian High Commissioner expressed his vies and hoped that the matter can be resolved quickly.
Adani’s adventure in Australia HARSHVARDHAN
The name Adani is not unfamiliar to us. Adani group is basically an Indian multinational conglomerate which is originally based in Gujarat. Formed by Mr. Gautam Adani in the year 1988 in Ahmedabad, the company now deals in various sectors like logistics, power, resources, agribusiness and energy. Recently, the Adani group was in news for its upcoming project in Australia. Mr. Gautam Adani proposed a plan of having a giant coal mine in Queensland, which was approximately amounting to be a $21 billion investment. It was also said that the whole set up would 16 • L’ENTREPRENEUR - IBS, Hyd
create enormous job opportunities, roughly around 10,000 in Queensland and elsewhere in Australia. Well at the very same time this figure was questioned by many and accused it stating that the Indian company is “grossly overstating” the number of job opportunities. Well this was not a problem for Adani’s, but what was that the proposed coal mine in Queensland was scrapped by the Federal court after it was found to be unhealthy for the environment and would cause allot of disruption in the ecosystem. Also the $3 billion which are spent on the project already play a major role in this haphazard turnout of events. On the very other hand the opposition in Australia had a completely different set of thoughts. Bill Shorten, the opposition leader mentioned it very clearly that the denial or rejection of the project is indeed a wrong step. He also insisted and questioned the verdict if there will be the same number of jobs in the renewable energy industry and that too in the very near future. A coal mine won’t sum it up when a big player like Adani is concerned. ADL or Adani Enterprises Ltd, India’s biggest thermal coal importer is also seeking permission to set up a
Believe it or not but the humans are not the main reason behind the disapproval of this project. The reasons were a Lizard and a Snake. Yes a lizard and a snake. Yakka Skink and the Ornamental snake are at a high risk of extinction if this project comes into the picture. YakkaSking, which is a highly sensitive and secretive species, which hides under the rocks and hollow logs an also underground is one of the largets skinks in the region. The funny part being the average size of the Yakka Skink is 40 centimetres from head to toe. While the snake, the Ornamental snake belongs to the Cobra family. These snakes are found only in small area of Queensland and are on the verge of extinction.
The proposed coal mine is expected to produce around 60 million tonnes of coal each year and estimated to contribute nearly $930 million to the Mackay’s gross regional product and $2.97 billion to the Queensland economy for the next 60 years. We all know that every action has an equal and opposite reaction. In this case, again we just might lose a very important part of nature completely and have a better lives for our-
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INCUBE THE ESSENCE OF Maçon
asked about the challenges which a budding entrepreneur like him will face he says that the main challenge is about capital, which could be overcome with a proper level of confidence and trust in one self. Some other issues faced by him were getting good human personnel and keep innovating regularly. He also mentions about the funny posters which help in maintain a good working environment. When asked about the conflicts which he would be facing with his partner he says he is married to his partner and so even after conflicts they ultimately settle up ! He says be with enthusiastic people so that even you have the zeal to be a employer and not just an employee. He at the end of the interview says , trust in yourself, trust in your idea be with good people, you will achieve your success. INTERVIEW TAKEN BY SWAPNIL DUTTA, USHA AND VAIBHAV
KRATI
INCUBE in IBS Hyderabad means the platform on which a student can present his/her business idea and see the idea turning to reality. Incube invites entrepreneurs to provide knowledge and training to the budding entrepreneurs for their glorious future. Incube calls entrepreneurs like Ankit Dharival (founder of feelinwow.com),Raj janagma( ) and Raju bhupati to inspire to be one like them. Their thoughts are covered by our interviewers . One of them is: ANKIT DHARIVAL Ankit Dharival was a student of Ibs and is also one of the co-founder of fellinwow.com. Before starting his own start-up he worked with bevakoof.com. He started his first business in IBS by selling the products of Karachi bakeries 18 • L’ENTREPRENEUR - IBS, Hyd
(famous in Hyderabad) in which he earned his desired profit. When asked about his business about “U-CLEAN” a business of dry cleaning of clothes of the students of IBS when he was at IBS, he says that it was one of his senior’s idea and he supported his idea by preparing quessioners and knowing the target customers and what they wanted. He also told about him being the campus ambassador of bevakoof.com at IBS. He wished to work with bevakoof.com and so he left his campus placement and went to work with bewakoof. One of the best things quoted by him is that he never stops trying, if someone did not replied to his mails, he used to keep trying and then ultimately achieve whatever he wanted. When asked about how he had the idea about feelinwow, he says it came very instantly! One night he discussed about it with his friend and next day he resigned from his working and went ahead to be a entrepreneur. He also says that he has first started with ladies product because girls have a better connectivity with fashion and he basically started a gift concept and now feelinwow is platform for fashion, but they definitely want to go in men’s collection. He majorly deals in foreign brands which are not available to Indians by which he got a first movers advantage too. When L’ENTREPRENEUR - IBS, Hyd 19
chosen to ensure that TED can maximize its efforts in achieving the winner’s wish. In 2012, the Prize was not awarded to an individual, but to a concept connected to the current global phenomenon of increasing urbanization. In 2013, the prize amount was increased to $1 million TEDxYouth:TEDxYouth are independent programs set up for students roughly between 7-12 grades. These events usually have people closer to the age of the students and sometimes show TED Talks
What is TED?so it’s SUNNY DESAI
Technology, Entertainment and Design, the
set of global conferences have been going with the spirit of ideas worth spreading since 1984. Started as a conference in california TED is a global community, welcoming people from every discipline and culture who seek a deeper understanding of the world. TED believes passionately in the power of ideas to change attitudes, lives and, ultimately, the world. TED is owned by a nonprofit, nonpartisan foundation. The agenda is to make great ideas accessible and spark conversation.
The TEDx Program is designed to help communities, organizations and individuals to spark 20 • L’ENTREPRENEUR - IBS, Hyd
conversation and connection through local TED-like experiences. The TEDx Program is designed to help communities, organizations and individuals to spark conversation and connection through local TED-like experiences. At TEDx events, a screening of TED Talks videos — or a combination of live presenters and TED Talks videos — sparks deep conversation and connections at the local level. TEDx events are planned and coordinated independently, under a free license granted by TED.
TED Fellows:TED Fellows were introduced in 2007, during the first TEDAfrica conference in Arusha, Tanzani 100 young people were selected from across the continent. Two years later, during TEDIndia, 99 Fellows were recruited, mainly from South Asia. In 2009, the Fellows program was initiated in its present form. For every TED or TEDGlobal conference, 20 Fellows are selected out of more than 1200 applicants; a total of 40 new Fellows a year. Working for innovations & Technology, TEDx also works for women Empowerment, it invites speakers from all around i.e artist, painters, scientist, social worker, psychology, Doctors,etc..It also has renowned Event partner & Community partner and a minimal amount of fee to attend the lectureIt organizes it’s events at TEDx licienced university/place , It also has collaboration with MNC’s like infoysis india,Microsoft.
TEDx india is organized at various locations like Hyderabad, New Delhi, Chandigarh, Kolkata, Nagpur, Surat , Pune , Bengaluru ,Mysore & Chennai TEDx has the best speakers who have the innovative ideas to change the world, TEDx rewards the beat speaker of the year through TEDx prize, the TED Prize was introduced in 2005. Until 2010, it annually granted three individuals $100,000 and a “wish to change the world”. Each winner unveils their wish at the main annual conference. Since 2010, in a changed selection process, a single winner is L’ENTREPRENEUR - IBS, Hyd 21
ple existing Indian business families adjusted to the new monetary strategy while others battled. Essentially, another type of business was conceived, one that concentrated on ICT (Data and Correspondence Innovation) and made riches for proprietors and representatives.
Indian enterprise and the difficulties to India’s development BUDHADITYA Indian entrepreneurship
The Indian state makes Indians entrepreneurial, as to overcome fundamental limitations and succeed with what we have we need to improve and extemporize. This article will depict how the Indian Family Business and its entrepreneurial soul assume a vital part in India’s development. In the first piece of the article, I examine its qualities and survivability in the worldwide environment. In the second segment, I talk about the difficulties – debasement, terrorism, and unfinished financial changes — that India appearances and their effect on outside organizations that need to put resources into the nation
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Before 1991, Indian business achievement was an element of aspiration, licenses, government contacts, and a comprehension of the bureaucratic framework. Choices were in light of associations, instead of the business sector or rivalry. Business objectives mirrored a continuation of the “Swadeshi” development, which elevated import substitution to accomplish monetary flexibility from the West. Pre1991 arrangements were internal looking and equipped towards the achievement of independence. Amid this period, enterprise was quelled, capital was constrained and India had not very many examples of overcoming adversity. Also, society was danger opposed and the individual searched essentially for livelihood soundness. In 1991, the Indian government changed the economy, therefore changing the aggressive scene. Family organizations, which ruled Indian markets, now confronted rivalry from multinationals that had prevalent innovation, money related quality and more profound administrative assets. Subsequently, Indian organizations needed to change their center and re-situate their viewpoint outward. A cou-
Today, organizations have entry to wander and development capital, gave that their stories and plans of action are sensible. In the pre1991 Permit Raj period, capacities, for example, make and convey items to the business sector were the Key Achievement Elements, without respect for the client and different efficienFor the old business houses, achievement had cies. Liberalization likewise acquired the time originated from the affectionate joint family of Saraswati [Goddess of Adapting in Indian structure that cultivates family values, cooper- mythology]; organizations would now develation, perseverance and coherence. Under this op in light of the fact that they had learning, , structure, eras lived and cooperated under one not due to whom they knew. rooftop, reaffirming the Weberian values and trust that have assembled effective organiza- One sample is N.R. Narayana Murthy, who tions. Riches from the organizations bolstered helped to establish Infosys Ltd. in 1981, with the joint family by giving a social wellbeing net a starting capital of INR 10,000 (CDN$ 250.00). to individuals. In the structure, organizations At Infosys, he and his group composed the and families were interlaced however they Worldwide Conveyance Model, which addiwere additionally unmistakable substances tionally established the framework for the with partitioned standards. Subsequently, sur- learning business. Narayan Murthy’s vision vival of the family got to be synonymous with gave a fillip to the IT benefits industry, making the survival of the business. and empowering the passage of a few new IT organizations. Liberalization, be that as it may, changed the very way of the joint gang. In the event that Vishnu: Preservation Cycle vast Indian organizations were to succeed, the To keep up business development, Indian family would need to re-arrange itself to con- business visionaries need to isolate working control of the business from helpful possestend in a worldwide, focused environment. sion, relieving business and family progression Post liberalization, IT organizations succeeded dangers. Yet, in a male-driven society, indion the grounds that they were client cen- viduals are hesitant to give up working control tered and professionally overseen. The old, and standardize forms. Subsequently, there family-oversaw organizations, which shaped are couple of expansive, organized and profesthe foundation of the economy, expected to sionally oversaw establishments in India. advance and get to be more institutional, if they somehow managed to expand their life Indian organizations need to move from an cycle. Beneath, utilizing the Indian mythology entrepreneurial-driven, unstructured socitrinity of creation, protection and pulveriza- ety to one commanded by expert chiefs. tion, I clarify the progressions that family orga- Administration control ought to rest with experts, as they find themselves able to pernizations would need to make underneath. form all the more effectively; valuable possession can keep on resting with the propriBrahma: Creation Cycle etors, who can in any case give the vision and After liberalization, business opportunities in associations, and appreciate the natural prodIndia were complex. A decent number of busi- ucts [increase in firm valuation] of productive ness visionaries seized them and developed administration. from little scale foremen to substantial land engineers, and from wholesalers to produc- On the off chance that a more youthful era ers. Achievement turned into the after effect of wishes to assume control over the business, proficient capital assignment, solid execution then clear criteria can be characterized to focus and a client introduction. their qualification to succeed their senior citizens. These criteria could incorporate necesL’ENTREPRENEUR - IBS, Hyd 23
sities to work in center administration, work crosswise over divisions, work in review, and have a top notch training. Progression should likewise consider the changing part of ladies and their craving to be included in the business. On the off chance that a legitimate progression arrangement is not created and actualized, nepotism and stagnation will come about.
Shiva: Destruction (Exit) Cycle
Proprietors ought to leave their business in the event that it is not proficiently overseen or in the event that it gets extraordinary valuations. A control-and-hold conduct will essentially not empower achievement. We have seen that a couple of proprietors, Malvinder & Shivinder Singh, and Ajay Piramal, for instance, both in the pharmaceutical business, have effectively Basically, corporate administration with a clear sold their organizations. possession structure that mixes viably with the expert leaders [e.g. CEO] can procure advan- As organizations develop, entropy will just tages for all partners. This will permit business increment. The irregularity will be hard to visionaries to fabricate bigger foundations. oversee if a formal family structure is not set up to address the issues of the cutting edge. Then Sunil Mittal, an original business visionary, again, if parts and obligations of the cutting indentified an opportunity in portable tele- edge are characterized, and proficient adminiscom. In 1994, Mr. Mittal effectively offer for tration (wherever fundamental) assumes cona telecom permit , and administrations were trol, conclusion of the business can be dodged. dispatched under the brand name AirTel. The As it is said, an absence of liquidity can bankplan of action was inventive –IT administra- rupt a firm; also, the absence of a fitting family tion administrations and equipment (telecom structure can compel a business to close after towers) were outsourced to merchants. Settled the original ways out. Along these lines, Indian expenses were changed over to variable expens- proprietors need to make the move from being es. Mr. Mittal had the capacity professionalize proprietors to shareholders. the association early, something that helped him construct a bigger foundation. Therefore, As shareholder quality expands, the free India now has one of the most reduced evalu- income can be put resources into new activities ated telecom benefits on the planet. that empower the new eras to apply their abilities. We require not discard the attributes of the The Burman Family, which possesses Dabur joint-family business – hard working attitude, Ltd. (buyer products organization), has is a capacity to manage differences, client center — decent case of a family organization that iso- yet to mix what has been found out about client lated administration from possession. It has a center and assorted qualities, for instance, into different Family Council that gives the vision an execution driven structure. At exactly that and heading, yet the regular administration point can the venture cycle of creation, saferests with the experts. The family has a formal guarding and obliteration. structure for corresponding with administration. Risks to India’s growth: Real but overstated The Indian entrepreneurial soul can just creAs Indian organizations got to be proficient, ate and develop if the Indian economy keeps chances to gain worldwide organizations on growwing on a supportable premise. The expanded. In 2006, Corus, an Old English dangers to India’s proceeded with developDutch steelmaker acknowledged a US$7.6B ment are terrorism, political defilement/staleoffer by Tata Steel, the Indian steel organiza- mate, non-comprehensive development that tion. This permitted Tata Steel to turn into a concentrates just on the urban rich, and slowed worldwide pioneer in the steel business as down changes. What then is India’s danger opposed to keeping on remaining a vast resi- premium? dential steel maker. Once an obtaining target, Tata Steel has itself developed into an acquirer.
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With Best Compliments from
SSF LiMITED
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As the venture cycle fortifies, outside organizations can put resources into India autonomously or through associations. The organizations consider the political, financial and family chances in their examination. From a scholarly’s point of view, the organizations can either diminish the normal money streams or build the markdown rate to reflect hazard premium, however the modification are complex. Nonetheless, I see interests in India as a vital choice. Beneath I examine the dangers and my comprehension of them.
sure that, given India’s history and conduct, we will stay united as a nation.
In the meantime, Indian organizations have demonstrated the entrepreneurial aptitudes and adaptability to develop notwithstanding the difficulties. Case in point, an Indian business person in Afghanistan is helping the administration to add to that nation’s foundation. C&C Development Ltd, joined by a gathering of experts in 1996, wandered into Afghanistan in 2002. It has fabricated 700 km of streets, and works nearly with USAID, Terrorism: India is a stronger state the World Bank and the Asian Improvement because of its culture Bank. C&C Development will likewise work nearly with the Indian Government to fabriAccording to Wikipedia, “Terrorism in India cate the Afghan parliament building. is essentially inferable from religious groups and Naxalite [militant Socialist Group] radi- Political risk: Uncertainty will remain cal developments.” I am not going to expand on the reasons for terrorism yet I would like India is an intricate nation with heap ranks, to inquire as to whether India as a nation will religions and dialects. The political gathersurvive and stay united notwithstanding the ings have advanced to address their needs loathsome exercises of the radicals. It can be and give the minority gathers a stage and a expressed unequivocally that terrorism makes voice that are heard at the national level. The vulnerability and postponements interests in not so distant will be portrayed by coalition any nation. Nonetheless, we have to appreci- legislative issues. It is far-fetched that both of ate a nation’s way of life, constitution and its the two noteworthy political gatherings – BJP past reaction to terrorism to consider and sur- or Congress – will win a greater part. This is a reality, yet India has the experience to deal vey its destiny. with the political procedures and contrasts Society is an expansive based word yet a capable idea. Society is established in myths, orga- It is obvious that a coalition government modnizations, TV, globalization, childhood, reli- erates the change process. Nonetheless, it is a gion and history. Nonnatives have attacked positive advancement, that, regardless of the India, however we have learnt to ingest and coalition government (lead by either BJP or absorb them into our general public. India Congress), we have stuck with it of liberalhas the second-biggest Muslim populace on ization. There are no significant contrasts in the planet. Buddhism and Jainism had their the middle of Congress and BJP to the extent roots in India yet just follows exist today, monetary strategies are concerned, and both as Hinduism consumed their teachings. The support financial changes. What’s more, as Indian society is tolerant and can manage con- India’s working class develops, the signifitrasts. The contrast in the middle of Europe cance of religion and rank will reduce; the and India is that Europe is a mainland with center will be just on development. Monetary free nations while India is one nation that has advancement will improve India’s political scene and further enhance political stability united numerous disparate nations. The Indian society is additionally flexible and ready to react sensibly to any terrorist exercises. As confirmation, Indian’s reaction to the November 26th 2008 terrorist assault in Mumbai was adjusted and controlled. I am 26 • L’ENTREPRENEUR - IBS, Hyd
Economic reforms need to continue Development needs to proceed and India needs “… another measurement of change, went for business sectors for inputs, from
power to work and area … They [1991 reforms] liberated markets for items.” [The Financial specialist, July 2011]. On the off chance that we are to keep on keeping up the development direction, the business sector for inputs needs to be changed. These are troublesome political choices and coalition governmental issues will make the procedure slower and troublesome.
gatherings are steady of the financial changes, it is impossible that the change methodology will be wrecked. What then is India’s danger premium? I accept that it differs as indicated by one’s perspective. Governmental issues is an essential element that effects the venture cycle. Subsequently, it is fundamental that the Indian government location issues of debasement and proceed with the following period of changes to quicken the choice making methodology. Change will proceed yet at its own particular pace. I have watched that organizations that have taken hazard and adhered to a sound strategy for success succeed in India. They have both sold their products locally and traded ability and items.
It will be simpler for the legislature to address and repair old base through open private organizations. India is experiencing an auxiliary — not a recurrent — change; henceforth, the procedure is moderate and driven by the political methodology. We require interests in force, streets, ports and extensions. A critical zone of change is the force segment, as no industry can attain to an effective change without adequate force. This is the reason the Indian government needs to push through the changes on force It is hard to hose the Indian entrepreneurial era, transmission and appropriation. soul. It has developed and contended in the worldwide business regardless of the controls Debasement could be seen as one of the pur- of the Indian government. Business visionarposes behind the moderate pace of finan- ies have demonstrated their capacity to adjust cial changes. Overspending on the Province to the changing monetary environment and Recreations and the Division of Telecom’s arrangement absolutely with the instabilities under-evaluating of 2G ranges brought about in the commercial center. Yes, the joint family overwhelming misfortunes for the exchequer. structure – the producing ground for business Indians’ dissatisfactions were diverted through visionaries – keeps on developing and contend the Gandhian authority of Anna Hazare. The adequately on the planet market. Anyhow, if tranquil challenges were effective and the that achievement is to be maintained, the monnation will get an autonomous ombudsman, etary changes will likewise need. the Lokpal (defender of the individuals), who will examine charged degenerate practices of http://iveybusinessjournal.com/ (Source) lawmakers and civil servants. This shows the way that we have the foundations, administration and in particular, the grass root activism to successfully form choice making at a national level. This will make a positive domain for further monetary changes. We additionally have the positive experience of the previous decade, for which both political gatherings, the BJP and Congress, were capable. Then again, future changes must be comprehensive and steady of the monetarily impeded. The Left gatherings don’t bolster monetary changes. Their considerations are concentrated internal on how India can keep on growwing financially all alone. As the Left gatherings are a minority on the Indian political scene and the Congress and BJP political
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GST-The Revolution Laasya
With the launch of the ‘Make in India’ and Goods Service tax(GST)initiative, Mr Narendra Modi, the Prime Minister of India, aims to give global recognition to the Indian economy and also place India on the world map as a pioneer. With the boon of GST bill being implemented in India, many entrepreneurs have kick-started their businesses in high end sectors.it is a good sign for Indian industries and start-ups as it aims at reducing the burden of VAT charges. Currently VAT registration is mandatory once a business crosses an annual turnover of 5lakhs in few states and 10 lakhs in the rest of the states. As VAT is implemented by state governments, each of the state has different VAT rates, VAT regulations and procedures leading to complications. To overcome the hassles of VAT, GST has become one of the fortunate alternatives. Once GST is implemented, businesses with a turnover of less than 10lakhs would be free from registration with GST. Further, businesses with annual turn over sales of 10lakhs – 50 lakhs may have to pay GST but at a minimal rate. Thus, once GST bill has been rolled out, India would expect a huge number of start up’s pitching into the world of entrepreneurship and business.
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Impact of GST in High-end Sectors One of the biggest beneficiary of GST bill would be logistics sector in India. A complicated tax structure along with bad infrastructure had led to high cost of maintenance for logistics in India. There has been a tremendous increase in the number of start-ups in sectors like automobiles, Manufacturing, logistics etc.as GST is set to bring about a better change for these industries in the near future with reduced and subsidised tariff rates. The roll out of GST would result in reducing logistics cost of companies by as much as 20%. On an average manufacturing companies spend about 5-8% of sales on logistics, hence implementing GST would save up to 1-1.5% of ware housing costs in a span of 3-4 years. The saving will accrue from a gradual phasing of CST taking into consideration such as consolidating the ware houses into 4-5 big ones instead of one in a state, faster transit of goods since local taxes will be consolidated into GST. Over all the Implementation of GST bills is a positive initiative taken as it would benefit the economy’s revenue by increasing the number of start-ups and without causing any burden to the businesses regarding VAT.
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