Mba handbook 3
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Transcript of Mba handbook 3
MBA Handbook-3
Public Sectors Banks-The Heart & Soul of Indian Government
The government was infusing capital in the past, but given its
commitment to rein in expenditure, the ‘Centre’ has
been more tight-fisted recently
In 2014,Govt said, only those banks that were more efficient would be
rewarded with additional capital. Only 9 Banks made the cut
In FY15, a rise in bad loans hit ‘Bank’s
Profitability’
Most Banks now have Tier 1 Capital that is ‘just above the RBI’s 8% comfort level’
‘Sadanand Maiya’s new idea of retailing’
Maiya’s Joins E-Way with Idli & Dosa Mixes
Sadanand Maiya owned Maiya Beverages is all set to e-tail
Maiya’s Beverages & Foods have launched a national e-commerce website on June 6 2015 & a micro-portal for
overseas customers(to be launched soon) for selling its ready-to-eat Dosa & Idli Mixes online
Around 270 Food Products will be offered on the website
Maiya’s also plans to launch a separate
micro-portal which offers products to
merchants@discounted prices
There are 246 million internet users in India spending 36 minutes a
day surfing on an average .So for Maiya’s
this looks a good opportunity
Maiya’s revenues for 2014-15 was Rs.93
Crores
Maiya’s projected revenue
for 2015-16 is
Rs.250 Crores
Maiya’s deliver partner
(a)Delhivery.com
(for handling domestic logistics)
(b)End2End-Cargo firm for
Global deliveries
Size of Indian Market;Branded Masala-
Rs.6200 CrSnacks Market-
Rs.4000 Cr
Maiya’s Beverages-A Brief ProfileBacked by Private Equity Firm(Ascent Capital)
PayU (Payment Gateway)will handle cross-country payments
Kishore Biyani’s limitless ambitions
V/S
On June 19,2015,Kishore Biyani (Future Group CEO) unveiled his
vision for his Rs.18000 Crores Enterprise
oBiyani plans to transform his retail-led enterprise into a ‘Consumer Goods Giant’oThe above strategy Biyani intends to pull-off by mapping consumer trends with the help of the following;-Data Science-Analytics-make launching affordable-Value-added products-Products @ an aggressive pace across food & non-food categories-To expand reach by using a combination of Online & Offline methods
oBiyani intends to touch a turnover of Rs.1 Lakh Crore by 2021(i.e 6 fold growth in sx years)
Kishore Biyani’s Portfolio
Biyani regarded as India’s Sam
Walton revolutionized
retailing in India attempting a
number of things &eventually
exiting few of them
Biyani’s Insurance &
Financial Services
venture Future Capital has
been exited a few years back
From Rs.8,000 Crores three years ago,
Future Group’s Debt has come
down to Rs.5,870 Crores
now
Biyani’s favorite Cash
Cow business-Pantaloons was sold to ‘Aditya Birla Group’ & restructured his
business to bring down
Debt
Target
Rs.1 Lakh Crores
Time Frame
By 2021
TargetRs.1 Lakh Crores
Tine FrameBy 2030
Future Group V/S ITC Limited
Future Group
StrategyBecame a Rs.20,000 Crore FMCG Giant by 2021Open small storesUse shopping data for better value & consumer insightsBecome a multi-channels retailer
ITC Limited
StrategyLook at getting into new spaces in packaged foods, beverages & personal careKeep the launches going, extend products into associated categories wherever possibleConsider acquisitions that can bulk-up portfolioExpand distribution reach every year & garner larger share in existing outlets
ITC V/S Future Group
Comparison
ITC has taken 10 Years to reach where Future Group will reach in 5
Years. In many respects Future Group is ahead of ITC with its own chain of
stores & a front-end that it can leverage to display its products
The biggest challenge for Future Group is its absence in general Trade which constitute 90-92 % of FMCG sales in India. Experts argue
that the move from being a retailer to a consumer goods giant is easier said than done
since the fight for shelf-space is intense in General Trade
Experts say that at 18.5 Million sq.ft, Biyani’s Future Group is still among the largest retailers in the country but this is not likely to be enough to drive Biyani’s FMCG ambitions. Competing
with ITC is not easy
ITC has been consistently investing in R&D, branding,
people, systems & so on. It takes a lot of resources & game plan to do
what ITC is doing.ITC has also made huge inroads into Food &
Non-food FMCG products. It is as big as Parle in biscuits & in
personal care even HUL
ITC ‘s turnover from Personal Care & Foods is roughly Rs.1000 Crores & Rs.6400 Crores. Food is an area that ITC
has taken over a decade to build having marked its presence across a range of segments including Biscuits
(Sunfeast),Noodles(Yippee),Chips(Bingo),flour (Aashirvaad)
Biyani also wants to foray into the segment what ITC is into. When it comes to reach & distribution levels, ITC could give Future Group a tough fight with its overall reach in 5 Million outlets .Recent
additions to ITC’ portfolio are juices (B Natural)where Biyani has a head start through
‘Sunkist’ & a proposed entry into dairy which is also on the Biyani’s radar.ITC is expected to give its
rivals a tough fight in these areas
In Personal Care Biyani is slowly but steadily building a baseFuture Group just launched a body wash for Rs.59 which is cheaper than a Bar of Soap.Future Group are looking at Shampoos.Future Group also acquired Grasim’s personal hygiene brands (Biyani states that he is not taking his eye-off the non-food category despite the bulk of the launches being in food)
Experts say that Biyani can race ahead of ITC in the non-food arena provided its Pricing & Marketing is right.ITC has been stuck with a market share of ;-2-3 % in Shampoos-4% in Soaps-9-10% in Deodorants with ‘Engage’ BrandBiyani has no plans to go ballistic on Deodorants which is an over-crowded category though personal hygiene with Grasim’s recently acquired brands-Kara, Puretta, Handys & prim is something he will aggressively push in the coming years
Anup George RebelloAsst.Manager
The Catholic Syrian Bank Ltd([email protected])
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