Archive for October, 2007

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Rumblings about indian business

October 30, 2007

Hmm .. Good news . Mukesh Ambani declared as the world’s richest person beating Software Czar Bill gates. Thats a real good news. Thanks to the Indian Stock markets, they have been scaling new heights creating a lot of wealth on their way. But more than this, it also signifies a BRAND NEW INDIA. India traditionally referred as a poor developing country has prouduced the richest person. (Well its still a developing country and so is mexico to which carlos slim – one of top 5 richest person belongs). This is the changing face of india and has made the world to wake up and take note of it. Mukesh Ambani’s three group companies namely Reliance Industries, Reliance Petroleum and Reliance Industrial Infrastructure have businesses that span over petroleum, chemicals, polyester, retail, textile and infrastructure have largely participated in the current bull rally propelling his networth to $63.2 Billion(Courtesy : Economic times ). But this post is not about signifying the fact that an Indian- Mukesh Ambani has become the world’s richest person but about another 1st generation entrepreneur whos been creating waves in the Retail industry. Yep you might have guessed it by now. Its Kishore Biyani – Retail King of india. I believe in calling him the next ambani of india. His Flagship company Pantaloon has been doing pretty well. But thats not it. Hes rightly positioned to capitalise the retail boom thats sweeping indian economy whereas other players like reliance retail, Bharati walmart are yet to make significant presence in the retail industry.

I happen to have a close watch on this man and what he is upto and in the process have become a great fan of him. Reading his book – It happened in india only reinforces my respect and admiration for him. He has been successful in creating retail formats for a whole-lot of General merchandised products. His Big Bazaar is the defacto shop people go to buy any item. It houses all the items a person would need it, at a reasonable price offering (with freebies and discount) and expected quality. He has been successful in scaling up this business by opening number of stores, creating logistics to transport bulk items at low operational costs and maintaing a profit margin albeit selling it at a price less than his competitor.He has replicated the same model in different industries like fashion clothings, Sun glasses, Watches, Furniture, Food, Books, Electronics, Home,Health and jewellary. Pantaloon caters to selling fashionable clothing to people of all ages. Brand factory is targeted to the brand-concious youth. ‘ALL’, a company serving a niche market of fat people (They call it as 40+ size). Top 10 – another company serving a niche market for people who keep up with latest fashion trends. Fashion station – another player selling fashionable clothing to mass market. Note it that all the companies i was talking here are engaged in selling clothing. we will move out to his other business example furniture. Kishore biyani has been successful in creating Furniture mart – a market player attempting to sell furniture to mass market and Collection i – another market player in furniture targeting high end customers who are concious about trendiest furniture designs available in market . i refer to them as class market.

Kishore biyani has struck gold by selling products targetting them for two different markets – Mass and Class. Be it furniture, Fashion. Home or Electronics. The names that he has chosen for his companies have a lot of connotation.Any company targeting the mass market ends with bazaar or mart Ex, Big Bazaar, Furniture Mart etc and any company marketing products has classy names namely Collection i, Top 10, Central etc. I really admire this aspect of him a lot.

I would really suggest you to visit his other line of business here . although i m no expert in finance or MBA nor have i gone through his P&L statements, i can see that his group of companies (Future Group) has been making excellent sales. I myself shop/buy at any one of his group companies – Big Bazaar, Central, Pantaloon, Brand Factory. And I must say i have been satisfied with product quality and price. And no matter what time of day you reach his shop, its always been crowded.I m suprised at the amount of marketing his companies spend. Its huge. His company is on its way to create the wealthiest brand in india. Given his success rate in booting up new ventures i can see this man creating a big name for himself in the retail industry. And thats one of the reason why i believe that he could be the next ambani.

That said some of the richest person alive are not from the IT/Software industry except for Bill gates. Does that mean the software industry is not suited for those whom dream to become the richest person in the world. Time to ponder ????

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Back with vengeance

October 24, 2007

Hi,

I m back to writing my blog. Not the first time that i have created a blog. I did create one, long back at blogspot.com but was so lazy to update it regulary. So here i m trying my second attempt at creating a blog and more importantly promising to update it regularly. What all will i be blogging here ? Hmm….Technology, Open source – Ubuntu, Movies, Music and tips on wealth and career management. This is just a medium to share my insights and experience that i had acquired all these years. Hope it helps few people in shaping themselves for the better.