Why India cannot give birth to Google??

Every time our current PM visits any country, there is a lot of buzz around the media. We all know who creates it. Our PM is definitely the most Media-centric  PM we ever had. We had one a year ago who was media-shy. This post is not for his modest travel plans which we all talk about. 

Mr. Modi has started many notable initiatives like "Swacchh Bharat" or "Clean India Campaign" and I must say finally we do have someone who does understand the root of problems in our country. However, Mr. Modi's recent meeting in California with the CEO's of the top tech companies does give me a doubt on his intentions. India we all have conglomerates. I searched for its definitions, it meant a number of things or parts that are put together to form a whole. 

So in Indian terms, if Google was in India, it would be definitely having a bank, a fertilizer plant. IBM would be having a petroleum refinery. Apple would be having retail chains, Investment banking. Microsoft would for sure have power plants and airline. But they are US companies. They do what they excel at. 

Talk about Indian top companies. They do everything. We have Petroleum to Retail honchos, Then telecom to power plants. We have some in textiles to fertilizer. We have some from car to infrastructure. Basically, we are omnivorous. WE can do everything and make more money. So what makes our Indian companies different from the US. 

Well, in my view our companies are more government policy driven or say they drive he government policy. The policy is drafted, consulted and well rehearsed with these top companies even before it's tabled in the cabinet. It's actually payback for their help in elections every 5 years. Not to mention tax breaks where they want to recover that money. The result, you have companies who rise 1000% every year in net worth. All foreign investment bankers know who drives government and they invest in such companies. So actually the profitability of these companies is drafted by the government. So why not a good bet. 

Now if you just see a few policies, they are so much favored towards one or two industrial houses (as they say), you just cannot ignore. But there are a few who can complain. Who would fight the might of Politicians and Industrialists combine? Imagine someone monopolizing the coal supplies in the government and no one raises a hand. Everything is distributed equally so that the top 30 do not have the chance to complain. No wonder we have helicopter JV's with a company which also manufactures tractors. 

Hence my advice to all people who are under the "startup" stage. Have plenty of government resources and have plenty of time to engage with our bureaucrats. Who knows when can you strike the cord and have a policy in your favor. 

A few companies which I have respect for lately is Flipkart, Snapdeal, Ola and a few more. But see who found out the talent in their schemes. IT was foreign fund houses. Which Indian Nationalized Bank funded a startup and can be proud. Why because they are busy funding our Corporate who share 80% of the NPA and then do restructuring and all sorts of window dressing. Very few would understand that if you experiment  with a business you haven't done before or which is not the Only business for you, there is a 100% chance of you failing. So when our corporates who are into Pharma enter into Infrastructure business thinking they have all the funding, they fail. But little do our banks understand that. Foreign funds do. 

Last but not the least, our govt. recently arbitrarily gave these corporate's banking licenses or a back door entry to banking. Remember a few decades ago when these private banks were nationalized. When these banks do mistakes (which I'm sure they would in a decade), Our govt. would be bailing them out and nationalizing them back. 

Conclusion

We shall never give birth to world class companies as we all, as they say, are "JUGAADU". In order for that let us be focused on what we are best at. If you want everything of all spaces, you can invest through the stock market and buy shares. Let the professionals do what they are trained to do. Let's just focus on one see what space is within that focus. And when you think, India is saturated for your focus, you have 202 more countries to go to. Let's build a world-class company with a focus to become world class. That's the true meaning of  STARTUPs. 

The world has a lot of wealth. Not everything belongs to us. 

PS: These are my personal views and in no way to insult or to demean any company or individual.

Make in India - Old wine Old Bottle New Label

Make in India - Old wine Old Bottle New Label

We have been listening a lot about "Make in India" and the announcements of many conglomerates to invest in various industries. I am neither a bureaucrat, nor a taxman nor a think tank nor anyone. I am an ordinary businessman who has had his own share of loss profit. But travelling has given me some experience which I feel that I can put it.

Clarifying the Aim of Make in India

I wonder what is the PM's ambition towards the concept of "Make in India". Is it creating more jobs? Is it more of self manufacturing and less of Import? Is it foreign investment relatively best to bridge gap of CAD - Current Account Deficit? Anyone would say all of them.

My personal opinion is Make in India has to be a holistic approach to build up BRAND INDIA where not just our own country but even other countries vouch for quality of "Made in India" and people just don't buy Indian goods cause we are the cheapest. I remember the cost between a German made machine and a Chinese machine is 5 times. People still chose German for quality and reliability. So question is are we to go the Chinese way or the German way. Let there be an India way where we are quality as well as price.

Very few would know but Indian manufactured Tyre are most respected in the world and sell at premium to Chinese.

Ease of Doing Business in India

I often start a few companies and the process is selecting a company applying for a pan card, IEC Code, sales tax no., excise no., service tax no., municipal registration no., PPF no., and then employing someone to file monthly, quarterly, half yearly and annual returns. And you good up in one or the other act and you are dependent upon the professionals (agents). So basically, If I am planning to earn Rs. 10, I have to keep aside Rs. 1 at least for following the rules and then paying a few more for finding loopholes.

ONE POINT REGISTRATION

Why not have a Single registration number. Let Sole Proprietorship's, Partnerships, LLP, Pvt Ltd., Ltd. be registered in one place and the registration no. be used for all other departments.  I know many people have already made this request but integrating identification numbers is a tough task as some come under central govt., some state, some municipal etc. Govt. can ask as much data as it wants and once given, I am sure it's for all departments. However, I am sure with the kind of I.T. talent we have in our country, it shouldn't be a problem. Saves time.

SOFTWARE FOR INVOICING

Once we have a single point registration, Let there be a standard online software for generating invoices. These invoices once generated can be shared all across the board to various departments who want to know what's the sales, how much sales tax, how much TDS, how much etc. etc. Plus, all invoices will be raised to some entity who will also have registration no. So no more quarterly monthly half yearly returns. Because every companies income is other companies expenditure. And banks would also find it easier to track payments, rate companies etc. It would be difficult to sideline funds. Easier for all. ONLY one thing govt. has to bear in mind. It will be DATA SECRECY. I am sure they can do it. Imagine the number of bottlenecks it can solve.

Make in India and Enjoy as Well

We in India have a habit to work even on holidays. I usually see most of the people even work on Sundays and holidays. The reason being what else to do? I have hardly seen companies stressing of employees de stress and ease of life. Although offices have rest area, but they are more for gossiping for the staff who don't have stress rest are busy.

Australia is a country where everyone plays something. We can do it. At city level, at regional level, at district, state. We create a new post in every municipality, every municipal called Sports Promotion. All schools be it government, private etc. have to have teams of cricket, football, volleyball etc. Basically team events and all have to play with each other once a year. The day of the match during these leagues should be weekends and all offices boss be asked to ensure all attend their children's matches. I am sure it will kick start what we all want.

Amusement parks for country like India 1.25 Billion and amusement parks 5-6. We don't have Disneyland, universal studios and our middle class likes to travel to Singapore, Hong Kong, Dubai just for a visit to these parks. Reason, Our Amusement Parks are not considered Infrastructure. Tourism Projects not considered Infrastructure. The investment in these are huge and returns are very late. This is the reason being not being developed. Let's have Special Entertainment Zones (like SEZ's) where people can enjoy, have funding in USD and low cost funding and have tax breaks. One Amusement park or entertainment zone or tourist zone will employ 1000's of people and will also need improved infrastructure.

Shine in India

I am not thinking about reservation. How much does it really matter in our lives. I was thinking who is the biggest employer in our country. Some will say Railways, some will say banks, Some will say Defense. I say the private sector. The small, medium, large corporate who are run by private individuals. They are our biggest employer. I have run a company with 500 or more staff. I never asked their caste and did reservation affect it. That is the reason private sector gets better talent. I cannot remove reservation and leave those to the government.

But we the private sector who pay our taxes and who employ maximum of our staff, let's have a policy of "Equal Opportunity". Let any peon, staff or anyone be it lowest or highest have the right to remain in a policy discussion table and express his views.

We see our bureaucrats, Police, Politicians and bosses like to be addressed as "Sahib", "Sir jee" more stress on the "Jee". This is not always respect, it is called "Chamchagiri" or buttering. Lets come out of it. The day we start addressing with first names we shall be treating our people actually equal. I know this won't happen but still a suggestion.

Let us make India the place for Shine in India than export our talent and they shine elsewhere.

In my future posts here, I shall write one by one on suggestions on the following topics

a) North East - The Jargon, The People, The Solution, 

b) Note to Mr. Ashwani - Reviving Air India

c) Black Money - Things No one will Discuss.

d) SAHEB JEE - 

Thanks