The SIMER Newsletter

 

 

 

Next Big Thing For Reliance

 

15% of Reliance SOTP is coming from retail, about one-fourth from Reliance Jio and the balance is coming from its traditional businesses.
It is fair to say that Reliance is firing on all cylinders. Telecom and retail is part of its core business now but rather importantly, its energy business will continue to dominate and going forward is poised for massive growth.
The Jio business added about Rs 3,000 odd crore of EBITDA but it is the petrochemical business which added Rs 4,000 plus crore of EBITDA to Reliance Industries. Reliance has got core competence in these businesses and these are businesses which in my opinion are understated in terms of profit potential. On the consumer side, the company’s immediate focus is on optical fibre-based fixed-line broadband
“The big story for Reliance Jio from here on is going to be fibre connectivity,” said Mayuresh Joshi. In the coming months, Jio will extend fibre connectivity to homes, small businesses, traders and small businesses. Leveraging on its advanced fibre bandwidth network, Jio will be offering this service in over 1,100 cities and towns across India. For homes, this could mean ultra HD entertainment, multi-party video conferencing, digital shopping, security cameras, home appliances, voice-activated virtual assistants, lights and switches.
The energy business is under threat due to a shift from fossil fuels to renewables, and Ambani acknowledges that.
“It is our belief that the rapidly increasing demand for petrochemicals maximizing oil-to-chemicals conversion will play a catalytic role in determining profitability of hydrocarbons businesses of the future,” Ambani said.
“As the world migrates from fossil fuels to renewable energy, we will further maximize this oil-to-chemicals conversion and upgrade all our fuels to high-value petrochemicals,” he said, adding this up gradation will happen in a phased manner over the next decade.
Still, there are some concerns about the company’s growing debt (about ₹1.41 trillion) on account of Jio.
“Generating reasonable returns (say a 10% post-tax return on capital employed) off a balance sheet of R-Jio’s size (current levels) needs the company to generate an Ebitda (we compute it to be $8 billion) that is higher than the peak historical annual Ebitda ever generated by the aggregate Indian telecom industry, including the home broadband and enterprise data players, per our math,” said Rohit Chordia & Aniket Sethi, analysts at Kotak Institutional Securities, in a 5 July note.

Contributed by-Vaibhav Prashant Pandit (PGDM 2)

 

 

POWER OF GRIT

The initiative taken by Phoolbasan Bai Yadav to fight against poverty & gender bias is something which is worth appreciable. Phoolbasan Bai’s journey started from 2000 when her group of 11 women started mobilizing other women through self-help groups (SHGS). This is phenomenal because when we talk about equality the only thing that thrives our mind is there should not be any gender bias regarding any work .Around two lakh women & 13000 SHGS operate under her NGO. They all work together for women employment ,health & sanitation facilities.
Phoolbasan Bai Yadav has received several national & international awards including padmashree in 2012 .There are no bank in rajnandgaon where their SHGS do not have loan account , they have won the trust of the banl by repaying the loans timely. Also she dreams of creating “Mini Amul” in rajnandgaon, she has a project where they manufacture & sell organic fertilizers in which 1700 women’s are involved. Phoolbasan bai added that “our women are now earning RS 10000-15000 a month”. They also aim to stop people migrating to other cities to look for their livelihood. She is an inspiration for those who believe that taking initiatives for the cause which will have some positive impact on society.

Contributed by-Abhijeet Shome (PGDM1)

Happening’s at SIMER?

DANDIYA NIGHT

The Navratri festivals are celebrated to pay homage to nine incarnations of goddess Durga. The special feature of this festival is “Dandiya rass”. In SIMER we celebrated it by organizing a Dandiya event by performing in groups with a dress code to offer scope for innovation, creativity & teamwork

 

Educational Tour

Delhi– Got opportunity to attend the franchise expo-especially first time was an overwhelming experience. We went to franchise expo Delhi to know about start up`s from all over India, got to know about various businesses currently working. There were more than 500 companies explaining their business model, revenue model, got to know about the recent business trends booming in the market.

Singapore– Industry Visited- K.H.Foges where we got to know about how the piling process is done for big infrastructures also visited Havas Media where we met Mr. NAMAN SHARMA sir and got to know about how data plays vital role in today’s business scenario. eHe also talked about the future of working culture where people must know how to communicate with machines and visited-Sentosa, Universal studio, It was a fun experience, A country like Singapore has a lot of exposure to experience be it the people, the tourist places, the business culture out there, the corporate culture.

 

 

Weaponisation Of WhatsApp

Whatsapp is one of the most usable applications especially in India, as it allows us to share text, videos, audios or we can say an advanced medium of communication which is making us connected to each other. Everything has its advantages & disadvantages so does Whatsapp. A single wrong circulated message with a span of 10-15mins could get a person killed in India today. Recently on June 25 2018 it was a news that a whatsapp message killed 24 people . It was both in text & audio. The message circulated in places like Jharkhand ,Tamil Nadu, Assam & Karnataka.

THE SNOWBALL EFFECT: No one had any idea where the messages originated from or who was the original sender .According to research by university of warwick 40% of fake news cannot be spotted by educated adults. Even if they feel something is amiss, only 45 % can place their finger on what exposes the news as fake.

THE PROPAGANDA MACHINE: At present , it has 200 million active users. These users are potential victims of fake news given the complex form of anonymity that whatsapp offers. The people who are spreading these rumors haven’t been traced purely .The fake message on “Child Lifters” added fuel to fire in Jharkhand, Which has been plagued by child abductions & kidnapping for years , even young girls from the state have been known to be abducted & forced into modern-day slavery into other states.
Conclusion: Social media platform like whatsapp was made so that people can communicate with each other via text, video, audio. This turned to be the reason behind the death of people by being used as a medium for the cause of death of people. Tracking up those culprits behind the rumors may help turning out whatsapp a safe platform.

Contributed by-Kajal Gaur (PGDM 1)

DEBATE

IS SOCIETY TOO DEPENDENT ON TECHNOLOGY THESE DAYS?

Yes, There’s no denying technology is great, but are humans becoming too dependent on technology? Advancements in technology have enabled humans to do things that were previously unimaginable and it has certainly made many tasks easier than they were before. How many of us can go for a week without an internet connection or cell phone? Do people take time to memories phone numbers anymore? Technology has made life so convenient for humans that being without it is a very scary thought. What would happen if all the technology that people depend on just shuts down?

Technology brought us machines, computers, cars and aero planes. It made the world smaller by providing good communication tools, made it possible to explore the solar system and the universe and proved that technology is truly significant in human advancement.
Just think, what would happen if your computer, iPad, or laptop crashed today? What if someone took away your phone for some days or perhaps you lost it? If thinking about these incidences makes you stressed, you are not alone. In a study, people were asked to give a personal opinion of whether they believe society is too reliable on technology . The results were one-sided. 77% of people responded believe society as a whole relied too much on technology to succeed.

“Yes, I have to agree that many people are becoming too dependent on technology. From simple things, like adding numbers in their mind vs. on a calculator, to more complicated tasks like planting a garden, humans rely on gadgets. In America, hardly anyone walks or rides a bike, people want to drive everywhere, even for a short distance .The world is evolving to incorporate technology into every facet of our lives. Just look at how GPS systems have changed the way people travel. People can’t even read a map anymore.
We must agree that the society is being carried away by the increased inventions being introduced in our lives today. The balance we need is to appreciate technology since it has its benefits, but also have the discipline to turn it off when need be to experience life in reality.
Manisha Phulwani (PGDM 2)
Vaibhav Prashant Pandit (PGDM 2)

 

Not, supporting this statement is very easy as per the current scenario. More than 65 % of our daily activities we do rely on technology either directly or indirectly but that doesn’t mean the line above does not have its other side. Is this dependency or addiction? Here the argument arises. At somewhere the point strikes in the mind who made this technologies? Well it is made by we humans.
Some people are still not in that extreme addiction of certain things regarding the technologies but are still going fine in their life. We cannot say that we don’t need technology but the matter of concern arises when it talks about being fully relying on technology. The fact is the more ease & comfort we get the more we rely on the resources which are there but on the other hand its our responsibility how we control the use of it Can we as a society do it? the answer is yes we can, by understanding that this is only a medium of us for getting things done easily ,the dependency is controllable once we as a society accept that too much of anything is dangerous & technology at an extent is making us lazy . The conclusion of this topic is, it completely depends upon us how we use it & it is in our hand that we make it as addiction or as only a medium to ease our comfort.

Anurag Shriwas ( PGDM 1)
Sonal Phulwani ( PGDM 1)

Success Story

“Never give up! Today is hard, tomorrow will be worse, but the day after tomorrow will be sunshine. If you give up tomorrow, you will never see the sunshine.” This quote by Jack Ma the founder and executive chairman of Alibaba. , a social media and e-commerce giant in China and, increasingly, the entire globe, reflects a lot about his personality. What makes him one of the most successful & influential person in the world? Let’s know more about him through his success story.
Jack Ma Yun born on 10th September 1964 in Hanzhou, Zhejiang, China. He graduated in 1988 with B.A in English from Hanzhou Normal University. Jack Ma’s path to success can be distilled into few characterizations, which has a mixture of failure, determination, rejection , hard-work , agility & vision. He began studying English at a young age by conversing with English- speakers at Hanzhou international hotel. Later in his youth he faced a lot of struggle , , the Chinese entrance exams where he took four years to pass, applied for 30 different jobs & rejected by all, was the only one out of five applicants to the police force to be rejected and the only one of 24 applicants to be a KFC manager to be rejected.

When he came to know about the internet in 1995 by his friends he realized that there was no general information available about china & then he decided to create a website with his friend for China. After the launch of the website he received emails from investors wishing to know about him, that’s when he realized that internet has something great to offer. In April 1995 , Ma started his first company with his wife Cathy & his friend, which was dedicated to creating websites for company & they named it “CHINA PAGES”. Ma decided to raise his funding by sharing the partnership with governmental body, giving away majority control of china page in the process. Unfortunately it brought a stifling control in Ma’s vision to execute for his company. He then eventually departed the company. From 1998-1999 did a government job for a short period in Ministry Of Economic Trade & Economic Co-operation. In 1999 he quit the government job & returned to his place (Hangzhou) with his team to found Alibaba, a business-to-business marketplace site with a group of 18 friends. Alibaba born out of Ma’s unfilled dream of using the internet to facilitate business activities for Chinese SMEs & frustration with bureaucrats he worked with in china page .

His idea was to facilitate trade of Chinese-made products in international market .Alibaba had allowed the exporters to list their products for direct purchase by customers .Unfortunately here also he struggled for raising the funds as his business model received a lot of criticism. However he coped up with all those circumstances & succeeded in enticing investments by Goldman Sachs & Softbank of $5 million and $20 Million in Alibaba,
In 2003 still Alibaba was not that much into profit , he launched a online auction site named “Tabao.com”.It began as a commission-free marketplace for millions of online traders. Tabao eventually gained traction in Chinese market. He reflected on this challenging period later on that taboo turned out to be the first successful subsidiary of Alibaba, with many additional offshoots to follow in subsequent years.

ALIBABA & YAHOO
After the success of Alibaba as the operations were reorganized Jack Ma convinced yahoo to invest $1 billion in exchange of 40% stake in Alibaba in 2005.This international growth strategy turned out a valuation of $2.5 billion at just six years of age. This turned to be a good paid off for yahoo as well.

In 2013 Jack Ma stepped down his CEO post for Alibaba, although he retained his position as a executive Chairman. The company went public on Sep 19, 2014. The IPO earned $150 billion, the largest offering for a U.S.-listed company in the history of the NYSE.

JACK MA’S ADVICE TO YOUNG PEOPLE & ENTREPRENUERS

1) Before you are 20 years old- “Be a good student focus on your studies. Make enough mistakes. Don’t worry any mistake is an income and a wonderful revenue for you. Before taking up entrepreneurship get a little experience”.

2) Between 20-30 years of age –“follow somebody; prefer to be a part of a small company over big company. You can learn more in a small company. At big companies you learn processing, you are part of big machine. At a small company you learn about passion and dreams, which is important to become an entrepreneur. Not only that you will learn how to do lot of thing at a same time.”

3) Between 30-40 years of age- “think very clearly that you are working for yourself if you really want to be an entrepreneur.” This is the decade that let you know which field is best for you”.

4) Between 40-50 years of age- “You have to do all these things that you are good at. Don’t try to leap jumps in new areas. It is too late. You may become successful but the rate of dying is too big.”

5) Between 50-60 years of age- “work for young people, because young people can do better than you, so rely on them; invest on them, making sure that they are good.”

6) Once you are at your 60s just relax & enjoy your retirement.

All this teaches us that no matter what others think we should be more focused towards our dreams & we shall never ever give up on those dreams. Jack Ma is an inspiration for all of us.

 

 

Inside Out

 

As brand plays a vital role in buying decision. Brand image is broader than brand personality. We Research and Publications Committee had a research on brand preference of Vehicles in SIMER.

• SIMERITES have
• 50% Liking for HERO
• 27 % Liking for HONDA
• 10 % Liking for TVS
• 8% Liking for BAJAJ
• 5.4% Liking for SUZUKI

The following research shows that majority of people has likings for Hero as a most preferred vehicle Whereas Suzuki has got the lesser preferences amongst all.
The research was successful with the observation of total number of vehicles as the preferences differs from person to person, the brand preferences of the SIMERITES have taken in to consideration as a part of our research.

 

 

 

Vocabs

1. SOTP – This follows a principle of ‘ Divide and Unite. The SOTP method uses method uses future profits of business for assigning a value.
2. EBITDA – Earning before interest, Taxes, Depreciation and amortization.
3. Weaponisation – Weaponize in such a way that it can be used as a weapon.
4. Incarnations- A person who embodies in the flesh a deity, Spirit or quality.

 

 

 

 

 

Research and Publications Committee 2018
Sangeeta Dalai(PGDM 2) | Yogesh Dubey(PGDM 2) | Neha Shrivastava(PGDM 1)