HR Conclave’18, the annual HR panel discussion event of SIMSREE, was conducted on 1st November, 2018, at a scale larger than ever before. HR managers from companies spanning across various sectors participated in the discussion. The discussion centred around the theme – “Future Blueprint of Human Capital” and was moderated by Mr. Aniruddha Khekale (Group HR Head, Emerson Automation Solutions). The panel consisted of some eminent speakers like Mr. Shourya Chakravarty (CHRO, Aptech), Mr. Dhruv Anand (Associate VP HR, Laqshya Media Group), Ms. Heather Saville Gupta (Group HR Director, MullenLowe Lintas Group) and Mr. Pradeep Dasan (VP & Head of Talent Acquisition, Nayara Energy) who shared their insights and presented their viewpoints on topics vital gig economy and people analytics which are relatively new to the HR domain but are changing the entire course of HR planning.
Keeping with the tradition at SIMSREE, the event started with the Saraswati Vandana, followed by an enlightening speech by Dr. Sangeeta Pandit, who laid the foundation for the panel discussion. The panel members shared some excellent views on how technology is playing the role of a facilitator and not of a disruptor, the way in which workplaces are changing and what the future holds in store for budding managers like us. The panel discussion was followed by the Q&A session where students asked apropos questions to the panel and gained further insights into the topic.
The panel discussion ended with the Director’s speech, where Dr. Manoj Bhide, applauded the Corporate Relations Committee for successfully pulling off an event of this stature and also appreciated the learning derived which will be beneficial for the students in the future.
How do food delivery companies like Swiggy, Zomato survive even after giving huge discounts to their users?
Let us first understand the revenue generation model of these companies:
- The partnering restaurants are charged for each order they fulfill through these websites, the charges ranging from 10-30% (30% is very rare). This charge depends upon the location and popularity of the restaurant.
For example, let us consider three restaurants X, Y, Z offering 10%, 20%, 30% commission on the business they get from the online delivery services. If 6000,5000 and 4000 is the total revenue generated by Swiggy for restaurants X, Y and Z respectively. Then the income generated for Swiggy is 600+500+1200 = 2300.
- Income generated through delivery charges paid by the customers. Usually it ranges from Rs 10 to Rs. 30.
Zomato receives on an average 3.5 million orders per month and considering Rs 20 as the average delivery charges per order, Zomato earns a revenue of about (3.5 million*20) 70 million rupees every month through the delivery charges paid by the customers.
- By providing premium features like promotion of a specific item of a specific restaurant by sending app notifications, mails or text messages to the customers.
- One upcoming model of revenue generation is by providing premium subscription to customers. By paying a fixed amount for a definite period, customers are provided with privilege services like free delivery, buy 1 get 1 free offers. Zomato provides ‘Zomato Gold’, while Swiggy has a free delivery subscription ‘Super’ in this category.
Now how are they able to give huge discounts and why do they have to?
- As mentioned above, restaurants join the network of these companies by agreeing to pay some commission for each order.
These companies forgo the commission to be received from the restaurants in the form of discounts offered to their customers. They do this in order to build their brand name and to capture the customers in the market hoping to have their loyalty. This strategy of building the brand name and capturing the market share helps the company in long run. How? By capturing large market share, they can earn huge profits even with lower rates of commission.
The discounting strategy of Zomato has led to spike in the number of new users to 2.4 million in September’18 from 0.19 million in January’18.
Discounting strategy creates high customer loyalty, hence a reasonably high amount can be spent to capture customers, as the investment recovery is apparently quick.
- Funding from VC’s provide sufficient capital to these companies to survive in the market even without making any profits for some time (can be for few years) until they build their brand name and capture a larger part of the market.
Zomato has raised a total funding of $ 635.8 million in 11 rounds of VC funding.
Swiggy has raised a total funding of $ 465.5 million in 8 rounds of VC funding. In FY18, Zomato recorded a loss of 106 crores. So even with constant losses around this figure, Zomato can survive for about 6 years without making any profits.
- They can also use their network and manpower build at the cost of such discounts to venture into other businesses such as logistics services, etc.
Kitna deti hai? (What’s the mileage?) – This is the ultimate question for any Indian in the market for a transport vehicle. So, why should it be any different when the Indian government goes shopping for fighter jets?
What are Rafale Jets?
Rafale is a twin-engine medium multi-role combat aircraft, manufactured by French company Dassault Aviation. Dassault claims Rafale has ‘Omnirole’ capability to perform several actions at the same time, such as firing air-to-air missiles at a very low altitude, air-to-ground, and interceptions during the same sortie. The aircraft is fitted with an on-board oxygen generation system (OBOGS) which suppresses the need for liquid oxygen refilling or ground support for oxygen production.
What is the Rafale deal?
- It all started in 2001, the Indian Air Force sought additional fighter jets claiming that they had a lot of heavy and big jets but did not have any medium size fighter jets.
- In 2007, A.K. Antony, the then Defence Minister of India (UPA Government) approved the process of buying a fleet of 126 medium multi-role combat aircraft (MMRCA). They started scouting for this aircraft across the globe.
- In 2011, Indian Air Force declared that two aircrafts were shortlisted – Rafale Ltd and Eurofighter Typhoon.
- In 2012, Rafale was finalized and was declared as the L-1 bidder and contract negotiations began with its manufacturer Dassault Aviation which is a French company. They finalized 126 aircrafts out of which 18 were to be bought in flying condition and 108 were to be assembled in India by Hindustan Aeronautics Ltd (HAL). The total deal was said to be worth Rs.54,000 crore which is approximately Rs.435 crore per aircraft.
- In 2014, even after 2 years of finalizing the deal contract negotiations remained incomplete due to a lack of agreement on various terms of RFP compliance and cost related issues. Transfer of Technology remained the primary issue of concern between the two sides.
Hence, there was no deal under the UPA Government. Then, the UPA government was overthrown and the Modi government (NDA) came to power.
- On 10th April 2015, Shri Narendra Modi during his visit to France made a declaration that he would be purchasing 36 rafale jets from Dassault Aviation in a government-to-government agreement. After the announcement, questions were raised by the Opposition on how the PM finalised the deal without approval of the Cabinet Committee on Security.
- On 23rd September 2016, India and France signed a deal for 36 rafale jets.
- On 18th November 2016, Mr. Subhash Bhambe the then Junior Defence Minister stated in the parliament that the deal has been finalized and the approximate cost per aircraft at Rs.670 crore.
- In February 2017, the contract deal was signed between India and a joint venture (JV) between Reliance defence and Dassault named Dassault Reliance Aerospace Ltd. (DRAL). The agreement for 36 Rafale fighter jets was at a value of euro 7.87 billion, or about Rs 59,000 crore which is Rs.1640 crore per aircraft. The agreement also included a 50 per cent offset obligation, the largest-ever offset contract in the history of India. The main point of the offset agreement was 74 per cent of it had to be imported from India, which meant direct business worth around Rs 22,000 crore. The delivery of the fighter aircraft is expected to begin in 2019, with an annual inflation capped at 3.5 percent.
In November 2017, Congress alleged a ‘huge scam’ in Rafale fighter jets deal. They have been accusing massive irregularities in the deal, alleging that the government was procuring each aircraft at a cost of over Rs1,640 crore as against Rs 470 crore finalised by the UPA government. The party has also demanded answers from the government on why state-run aerospace major HAL was not involved in the deal. The party claimed that Qatar had purchased 12 Rafale fighter jets in November 2017 for USD 108.33 million per aircraft (Rs.694.80 crore). The Congress has also alleged the government was benefitting the Reliance Defence Ltd (RDL) through the deal as the company has set up a joint venture with Dassault Aviation to execute the offset obligation for the Rs.59,000 crore deal. Reliance Defence had no expertise in the fighter jets business and had never built an aircraft till date. The party also alleged Reliance Defence was formed just 12 days before the announcement of the Rafale deal by the prime minister on April 10, 2015. To make things worse on 21st September 2018, former French President Francois Hollande revealed that the choice to select Reliance Defence as the offset partner was made by the Indian government and France had no option but to go ahead with it.
Finance Minister Arun Jaitely claimed NDA government negotiated hard to keep the price of Rafale jets down by at least 20% per aircraft in its 2016 deal as compared with UPA government’s deal of 2007. He also accused the Congress of having seriously compromised national security by delaying the Rafale deal by over a decade and said the Congress and its President Rahul Gandhi were unaware of the Rafale deal facts. A document prepared by the ministry of defence and the Indian Air Force this year shows that the per unit price of Modi regime’s Rafales, after taking into account the cost of weapons, maintenance, simulators, repair support and technical assistance is Rs.1,646 crore while the ones negotiated for by the UPA would have come to Rs.1,705 crore. The aircrafts bought by NDA also has missiles such as the METEOR and the SCALP which were not included in the aircrafts bought by the UPA. Also, on 22nd September, Dassault Aviation the French defence manufacturing giant has refuted claims by former French President Francois Hollande and said that it was Dassault who selected Anil Dhirubhai Ambani’s Reliance Defence and not the Indian government.
How important is this deal to both India and France?
France: Rafale jets are currently being used mostly by France and also by Egypt and Qatar. Dassault is hoping that export of Rafale jets will help the company meet its revenue targets. India was the first country that agreed to buy Rafale, after it was used in Libyan airstrikes. If India inducts these jets in its military fold, other nations could express its willingness to buy Rafales. This will give a huge boost to the country’s economy.
India: India chose Dassault over its traditional partner Russia’s MiG. It also ignored U.S.’ Lockheed, at a time when India and U.S. were aiming for closer ties. Procurement of combat aircraft is long overdue for the Indian Air Force. Further delay can only make things worse. This deal is India’s biggest-ever procurement. In the effectiveness of the Rafale deal lies the future of other defence procurement.
(This artile has been written by Archit Zaveri, first-year student at SIMSREE)
Ever wondered how an entrepreneur manages his entire day, shuffling between meetings, employees and clients. He has to work to make things work for himself and his company. An entrepreneur’s day is more or less the same irrespective of the domain that one is working in. Entrepreneurs have to wear a lot of different hats as they progress through their day. They are known to be early risers. The first thought that most entrepreneurs have as soon as they get up is their business. They’ll be checking emails and missed calls while still laying on the bed. Once the priority emails have been replied to, they wear the hat of a family person. It’s the usual morning for them, going to the gym, spending time with the family and getting ready to start a new day at work.
On reaching the office, entrepreneurs spend the first two hours basically connecting and communicating with the world. It usually consists of replying to emails, calls with prospective clients, etc. This is followed by lunch either with the team or with prospective clients. Team lunches are means for entrepreneurs to understand the concerns of their employees. The next few hours of the afternoon are usually spent on board meetings with teams to keep up with their progress and give a direction to go further.
The evenings are lighter, consisting of walks with employees, which helps with brainstorming outside the confines of the office. Most of the creative ideas come out of these talks, as people feel less intimidated in a friendlier surrounding, and this helps them to think better. After most of the workforce has left for the day, entrepreneurs take the late evenings to deliberate on big deals that need his expert views.
Once at home, an entrepreneur is back to be a family person, having dinner with the family. However, this happens only if there are no prior dinner commitments with clients. Even if an entrepreneur might end his day with a good book or pursuing some hobby, his company would always be at the back of his mind.
Everything being said, running a company is much more than a job, and an entrepreneur’s day cannot be defined or planned.
Feminism is the belief in the social, economic, and political equality of the sexes, a concept which implies that men and women are equal and should be treated in an equal way. We at Student Social Responsibility believe in feminism but the concept has been misconstrued in so many different ways.
Most people are under the consideration that this implies, women domination over men but that is completely untrue. It implies that the women who are deprived of their rights or the status they deserve in the community. In medieval times women were prevented from conducting business without male representative. Women had little access to education and were barred from pursuing professions. In today’s scenario women have proved that they can handle any profession they are given, be it social, political or technical.
Women everywhere, must have equal rights and opportunity, and be able to live free of violence and discrimination. Women’s equality and empowerment is one of the 17 Sustainable Development Goals (SDG), but also integral to all dimensions of inclusive and sustainable development.
India is very fortunate to have numerous great women from Mrs, Vijaylaksmit Pandit- the first Indian woman President of UN General Assembly, Sarojini Naidu- Indian independence activist and poet, also known as the ‘Nightingale of India’, Indira Gandhi – the second woman Prime Minister in the world to Pratibha Patil, the first woman President of India and many more whose contribution have proved to be more than a match. A woman is an epitome of love, sacrifice, care and ability to nurture life. They from an absolutely indispensable part of the society.
The first thing that comes in our mind when we think of Marwaris is business. Their success at business leaves us with multiple qualities to learn. Let us drill down into the basic qualities which made Marwaris successful at their businesses and what we as Future Entrepreneurs must inculcate from them.
- Frugality – Marwaris have long learnt the art of ‘Using Money to Build Money’ and the most important thing required to use money is to first save them. Marwaris don’t spend, they invest. Future entrepreneurs need to find all the opportunities to save as money saved is money earned and will be useful somewhere down the line. Respect every penny.
- Adaptability– Businesses require us to adapt as per the nature of the consumer and ones who have mastered this art are Marwaris. Since time immemorial they have been settling at different locations and dealing with multilingual people. But whatever was required to fulfill the business requirement was taken care of. Marwaris speak fluent Marathi at Mumbai and fluent Tamil at Chennai just to improve business. This is something that future entrepreneurs need to inculcate in a time where technologies and processes change in a blink of an eye.
- Integrity– Marwaris are very famous for their honesty and trustworthiness as most of the business that they deal into is based on the trust with dealers or other channels. In-spite of residing at multiple locations other than their native, Marwaris are very much rooted to the customs and traditions that they believe in. Marwaris back each other like soldiers and this enables them to deal in large cash. This gives a learning that networking should be focused on building trust.
- Futuristic approach– Marwaris are always ready with a futuristic approach about the domain that would be healthy to enter into. Starting from small time accountants to business owners to money lenders, they have worked in all the domains and now when the future is expected in education the generation has started shifting to IITs, IIMs, etc. This future oriented approach helps in managing different aspects.
- Love of Autonomy– Marwaris engage is business as they prefer not being guided by others and churning out their own paths. This is one of the factors that can actually drive entrepreneurs. Marwaris are motivated to achieve and crave for heights and ‘settling’ is not an option.
- Thorough knowledge and hard work– Marwaris are great at numbers and never mess with calculations. That teaches future entrepreneurs to be thorough with the areas they venture out in.
- Right attitude– We will sign off at this point with a joke
Interviewer: How long will you have to work to buy BMW?
Doctor: I think I can buy one in 6 months of practice
MBA: I need about 9 months of work
Engineer: At least a year of work
Marwari: I think…about 5 years
Interviewer: Why so long?
Marwari: Well, it’s a big company!!
Ain’t these must to be a successful entrepreneur? So let’s not wait anymore and get in touch with a nearest Marwari and learn the art of business from them.
So, you got an idea for starting your own business? GOOD. Made plans on how to execute it? BETTER. Ready to compete in a world having multiple challengers with the same idea and unending technological advancements? PAUSE. And that’s where we, as budding entrepreneurs get stuck with. No doubt, the ideas that run in our minds and the plans we think of on how to execute them might be awesome in our perspective, but it’s just a one sided view. And that’s not enough in today’s world where a new idea comes up every second which could make an idea, or perhaps your idea, OBSOLETE. So, the question that arises is, how to tackle it? How to make your Business Idea last in this competitive world? And that’s where we need to innovate a Business Model.
In simpler terms, the need for Innovating a Business Model is to understand the possibilities of creating your business in that zone, targeting a specific set of customers, turning them into permanent customers, managing your finances and also expanding the business venture. All these things might seem like a big task for an entrepreneur in the initial stages, but these are the necessary criteria that every business must have in order to survive in this competitive world. Leave any of these points out of your business idea, and there might be back draws that would eventually make your company thirsty and hungry for survival.
What basics of business model must one develop to survive in the market?
Well, this depends of the type of business one wants to start. In the Technological Sector (where there is always something new coming up in the market) one needs to identify the issue first. Developing a new piece of tech or coming up with an idea to solve the issue is one of the biggest needs today. As we go with the saying ‘The Early Bird gets the Worm First’, similarly in this Tech-Savvy world, the first person who solves a problem or innovates something new gets a major chunk of the market in the initial days. And that is exactly what one needs; an opportunity to showcase themselves to the world. Rest all follows.
Similarly in today’s Marketing World, having a Business Model is a must. A Marketer must be able to predict the market way ahead before the demand of a service is created. This gives one enough time to prepare themselves, make a plan of how to execute their idea, manage their finances, and place it in front of the world before others catch up to the trend.
In the Financial Sector, where everything is Unpredictable, a business must plan out in advance all the issues that it could face in the near
future. It must consider all opportunities, whether they might exist or not in the future, for when the winter hits hard, it’s better to store all the grains and survive the season rather than be helpless and fade as a memory.
For an Entrepreneurship, it is important that he/she carves out a small market for their business first. This ensures the survival of the business and also gives an opportunity to flourish. Once the roots of the business are strong enough, then it is must that the entrepreneur must take risks to venture out in a much stronger and competitive market. One must remember, that no business can be successful, if it does not take the risk to venture in the deep seas to find the treasure!
An evening with your second family,
An evening with your batch mates, mentors and friends,
An evening filled with fun, laughter and memories..
The Alumni Committee of SIMSREE organised the Annual Alumni Meet- “Reminiscence 2018”, on the 29th of September and all the visiting alumni made sure that the event was a huge success. What took months of planning and diligent execution was finally ready to welcome the alumni. Remi, as it is fondly called, always rekindles the love of alumni for Sydenham and it did the same this time too. Old bonds were renewed as the alumni recollected and also made new memories.
The evening was inaugurated with an addressal by Dr. M. B. Bhide – Director, SIMSREE. Many alumni from different batches currently serving varied esteemed global organisations were present in the meet. Many just crossed hundreds of kilometers to meet the alma mater!
The theme for Reminiscence this year was ‘Arabian Nights’. The Alumni Committee along with volunteers had decorated the institute with posters, flexes, 2D & 3D pseudo architecture symbolizing the theme of the day. One of the room had photo booth arrangements where a throne was built inside an Arabian shamiana alluring everyone to take a photo with it. The standees, character cutouts and illumination gave college the Arabian flavor!
The Activity room was the cynosure of all eyes at the event as many alumni from the recent batches wanted to try their hand at the golf track and blind folded car driving. On the other hand the Karaoke room was bustling with older alumni who were busy singing their favourite 90s songs with their fellow batchmates.
The alumni were pleased by the efforts the committee took in organising the event and applauded for the same.
We, the Alumni Committee of SIMSREE, would like to express our sincere gratitude to our ‘Alumni family’ for taking out time from their busy schedule to grace this flagship event with their presence and making it a huge success.
Cheers to this one and more to come!!
(This article has been written by Aditya Patil, a first year management student at SIMSREE)