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(anuprebello.6@gmail.com)

http://www.slideshare.net/anuppresentations