Reliance’s entry in retail and other major issues of the day…
It was a usual day of my life .Till I came across news of "Reliance" entering into Retail sector .With sum of Rs. 20,000 to 30,000 crores, they are ready to take over Indian Retail industry worth $280 billion .Now that is interesting. Retail sector, which is largely unorganized till now and is responsible for employment of 21 million people, can simply turn-around to be an industry of 17 million people, which straight means 4 million people searching for new means of livelihood. The thing which disturb me most is that "Reliance" is entering in this sector, which is known for crushing competition, manipulating laws and using every trick in book to achieve their goal. Also Telecom major, Reliance Infocomm is exploring the possibility of retailing consumer electronic (CE) products under its own brand name. The company is evaluating the idea of creating a business model of branding and marketing Reliance CE products such as televisions and audio by scaling up its existing retail network for its mobile handset business. So finally "Mere Papa Ka Sapna Sare Desh Ka Maal Apna” is turning out to be reality .No I am not against any particular group of companies or competition. But this is fact that Reliance is a company which used all means (at time keeping all rules, ethics, principle on one side) to achieve their monopoly in market. How can you forget CDMA issue in Telecom sector? With companies like Tatas and Birlas, there was an advantage of early starter but they were not able to manipulate rules to take adequate advantage. Somewhere I read (most probably in India Unbound), that in one particular year Tatas sold their assets to pay income tax because their social welfare programs were not tax deductible. The point here is that these "Oldies" believe in "level playing field", whereas "Reliance" set its own rules.
With the rate Reliance is planning to expand, I hope that their dominance in market will grow at the same rate, ensuring that new competitors are crushed either by their huge financial power or political power. I sincerely hope that our next generation doesn’t need to work under a monopoly market. I am still amazed that Indian government which cried so loud when Walmart showed their interest in entering Indian Market in terms of "Job loss" is reacting indifferent towards these developments. Although I hope that retail battle will not be easy. Reliance had an advantage of providing "low cost", but it will be difficult for them to get space in an already crowded Indian market. Existing majors like Kishore Biyani can also give them a run for their money, through their expertise in Indian retail market (Hmm but Meshwani brothers & Mukesh Ambani is deadly combo Jamnagar plant, reliance infocomm). The final part is Indian Government which can play a crucial role in getting level playing field for all players and not only in Retail sector but in all sectors. But level of corruption makes me little afraid that whether we will be able to do something to stop supremacy of these "Czars". Reading these news, I also came across an article about “Paritrana’’ political party formed by five IIT grads from Jodhpur. Their CV's are superb, and although lacking funds, they are working hard to change the face of Indian politics. This shows that Mani Ratnam's "Yuva" has made an impact on Indian youth. It gives me a ray of hope of seeing a clean political system in India.
Enough of global gyaan, let’s talk about latest in our own campus. Mr B.B. is back. I also came to know that "Mr Dependable" (I am talking of none other than Mr. B.B. himself) of all projects gave his team great shock in POM project. Maybe he is not able to concentrate well on his studies. That’s natural. Although I missed a great class of IR today (God is again against me). I heard one of my team members performed exceptionally well. Anurag showed that why some players are "class apart". Along with B.B. came Illuminatix cord straight from Kerala. Kindly check comments section in his blog (www.fun2speak.blogspot.com). There is more to his life than what we all know. I am very sure that Illuminatix will cover these issues in "Spice". But I would like to congratulate their team for superb work .I also saw all the articles (link was there in POP UP) they really helped in giving comprehensive coverage to our placement event.
FM exam is again postponed (no surprise here) and students are now working very hard (you can estimate that with the length of this blog). Today’s blog doesn't contain too much of "news" because of "antisocial elements" who are trying hard to stop this blog. Yesterday at 04:00am, someone knocked on my door for "Jhaadu" (broom). Comments section is also now added with "false information" to misguide readers. I would like to remind all my friends that everyone need sleep in a day and your doors are not very far away. Although some of you are going to Cal you will come back and I am waiting for your return.
Moral of the story: Kindly take the elective on "Retailing" next year. Your comments are most welcomed on this topic
Zindagi Rahi to Phir Milenge
Manoj Sifar
It was a usual day of my life .Till I came across news of "Reliance" entering into Retail sector .With sum of Rs. 20,000 to 30,000 crores, they are ready to take over Indian Retail industry worth $280 billion .Now that is interesting. Retail sector, which is largely unorganized till now and is responsible for employment of 21 million people, can simply turn-around to be an industry of 17 million people, which straight means 4 million people searching for new means of livelihood. The thing which disturb me most is that "Reliance" is entering in this sector, which is known for crushing competition, manipulating laws and using every trick in book to achieve their goal. Also Telecom major, Reliance Infocomm is exploring the possibility of retailing consumer electronic (CE) products under its own brand name. The company is evaluating the idea of creating a business model of branding and marketing Reliance CE products such as televisions and audio by scaling up its existing retail network for its mobile handset business. So finally "Mere Papa Ka Sapna Sare Desh Ka Maal Apna” is turning out to be reality .No I am not against any particular group of companies or competition. But this is fact that Reliance is a company which used all means (at time keeping all rules, ethics, principle on one side) to achieve their monopoly in market. How can you forget CDMA issue in Telecom sector? With companies like Tatas and Birlas, there was an advantage of early starter but they were not able to manipulate rules to take adequate advantage. Somewhere I read (most probably in India Unbound), that in one particular year Tatas sold their assets to pay income tax because their social welfare programs were not tax deductible. The point here is that these "Oldies" believe in "level playing field", whereas "Reliance" set its own rules.
With the rate Reliance is planning to expand, I hope that their dominance in market will grow at the same rate, ensuring that new competitors are crushed either by their huge financial power or political power. I sincerely hope that our next generation doesn’t need to work under a monopoly market. I am still amazed that Indian government which cried so loud when Walmart showed their interest in entering Indian Market in terms of "Job loss" is reacting indifferent towards these developments. Although I hope that retail battle will not be easy. Reliance had an advantage of providing "low cost", but it will be difficult for them to get space in an already crowded Indian market. Existing majors like Kishore Biyani can also give them a run for their money, through their expertise in Indian retail market (Hmm but Meshwani brothers & Mukesh Ambani is deadly combo Jamnagar plant, reliance infocomm). The final part is Indian Government which can play a crucial role in getting level playing field for all players and not only in Retail sector but in all sectors. But level of corruption makes me little afraid that whether we will be able to do something to stop supremacy of these "Czars". Reading these news, I also came across an article about “Paritrana’’ political party formed by five IIT grads from Jodhpur. Their CV's are superb, and although lacking funds, they are working hard to change the face of Indian politics. This shows that Mani Ratnam's "Yuva" has made an impact on Indian youth. It gives me a ray of hope of seeing a clean political system in India.
Enough of global gyaan, let’s talk about latest in our own campus. Mr B.B. is back. I also came to know that "Mr Dependable" (I am talking of none other than Mr. B.B. himself) of all projects gave his team great shock in POM project. Maybe he is not able to concentrate well on his studies. That’s natural. Although I missed a great class of IR today (God is again against me). I heard one of my team members performed exceptionally well. Anurag showed that why some players are "class apart". Along with B.B. came Illuminatix cord straight from Kerala. Kindly check comments section in his blog (www.fun2speak.blogspot.com). There is more to his life than what we all know. I am very sure that Illuminatix will cover these issues in "Spice". But I would like to congratulate their team for superb work .I also saw all the articles (link was there in POP UP) they really helped in giving comprehensive coverage to our placement event.
FM exam is again postponed (no surprise here) and students are now working very hard (you can estimate that with the length of this blog). Today’s blog doesn't contain too much of "news" because of "antisocial elements" who are trying hard to stop this blog. Yesterday at 04:00am, someone knocked on my door for "Jhaadu" (broom). Comments section is also now added with "false information" to misguide readers. I would like to remind all my friends that everyone need sleep in a day and your doors are not very far away. Although some of you are going to Cal you will come back and I am waiting for your return.
Moral of the story: Kindly take the elective on "Retailing" next year. Your comments are most welcomed on this topic
Zindagi Rahi to Phir Milenge
Manoj Sifar
posted by Manoj "Sifar" at 4:34 AM
2 Comments:
MAy the broom seeker rot in hell...and we both know why ...:-D amen!!
oye moti...likhna kyu bandh kar diya...lagta hai tera dhyaan kahi aur hai aaj kal ;-)
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