STATUTORY NOTICE:Buy At Your Own Risk....Due Diligence is a must....therefore it is advisable to act cautiously and cross check the matters..from other sources, before taking any investment decision and without assinging any liabilty to me...the owner of this blog...
I may or may not have any personal interest in any call which I give and hence take your own decision...
One can reach me at email@example.com, http://twitter.com/#!/rajuidesai
Friends, I gave the call of First Object Techno at 28 and today I am seeing it at 57.It has doubled from my call and now an oppertune time to sell 50% and make the rest FREE. Supreme Petrochem is remaining steady and hence one can keep adding for LT.
This could be the mother of all mining scams, and this time it’s in Odisha, a State which accounts for over 30 percent of India’s iron ore deposits.
A CNN-IBN investigation has exposed a mining scam estimated at Rs 3 lakh crore, a scale that dwarfs the Bellary mining scam in Karnataka and the Goa mining scam exposed by Firstpost recently.
The investigation by Jajati Karan has established that illegal mining flourishes in Odisha’s Keonhjar distric. Five companies have been charge-sheeted for illegal mining by the Odisha government’s vigilance department. Illegal mining operations in three companies – Serajuddin Mines, Rungta Mines and Indrani Patnaik Mines – were caught on camera by the CNN-IBN team. (Watch the video here)
The Odisha mining scam is estimated at Rs 3 lakh crore. Raman Kirpal/ Firstpost
These were among the 243 mines where work had been suspended after an uproar in the Odisha Assembly in 2009.
Yet, today, the illegal mining continues.
At Balda, at the Serajuddin mines, truckloads of iron ore could be seen emerging from the main gates, all of it mined illegally. Even at night, the CNN-IBN team found trucks leaving loaded with the illegally mined iron ore.
At Unchabali, the CNN-IBN team trekked past pillars marking the Indrani Patnaik Mines to the top of a hill where it caught images of illegal mining at a grand scale.
At Jajang, at the Rungta Mines, the team sneaked a camera in for a few minutes to uncover even more illegal mining.
According to the State Vigilance chargesheet, the illegal iron ore mining at these three mines alone has caused the loss of a staggering Rs 2,352 crore to the state exchequer.
Anup Patnaik, Director, Vigilance, says: “Show cause notices have been served on the owners of all the mines that we are investigating. We have also seized their materials, and told them that mining cannot continue till our case is over.”
Independent estimates have valued the illegally mined iron ore at Rs 3 lakh crore. Each tonne of iron ore fetches the mining company nearly Rs 8,000, while the State government gets a measly royalty of Rs 78 per tonne.
The Mines Department of the Odisha government, however, defends the charge-sheeted mine owners.
Says Manoj Ahuja, Secretary, Steel and mines: “The royalty has been paid for, so it’s not illegal in that sense. There are no accounts that somebody has done illegal mining.” At worst, it is a violation of a technical norm, he adds.
Last year, the Indian Bureau of Mines issued a show-cause notice to these mines, but took no further action. Till date, 13 minor officials have been arrested, but none of the senior functionaries have been touched.
In April this year, the Odisha High Court finished its hearing over the demand for a CBI inquiry into the mining scam, but reserved its orders. Activists believe that only an independent and impartial inquiry can reveal the extent of the alleged nexus between mine owners, politicians and bureaucrats
RTI activist Biswajit Mohanty, who has filed a PIL calling for a CBI inquiry into the illegal mining in Odisha, points out that the mining scam was exposed accidentally in 2009, when a ruling BJD MLA asked an innocuous question to the Assembly. The reply exposed the mining scam. (Watch Mohanty’s interview to CNN-IBN here.)
The government was then forced to order an inquiry, and the vigilance department conducted an enquiry. But Mohanty argues that the theVigilance Department is ill-equipped and incompetent to investigate a scam of this magnitude.
“It doesn’t have jurisdiction, it cannot investigate beyond the State’s border”, which he says is critical because even the Central Ministry is involved.”They have to be investigated, and it cannot be done by the Vigilance Department.” In addition, he points out, the case has international ramifications because the ore has been exported to other countries, principally China.
“All of us have challenged this enquiry order on the simple ground that it lacks jurisdiction, it lacks competence, it lacks adequate manpower and infrastructure,” Mohanty adds. “We believe it is a cover-up by the State government to protect the miners and allow illegal mining to continue.”
The scam also highlights the issue of “intergenerational equity” which the Supreme Court has highlighted in an earlier vedict, Mohanty noted.
“The State and the Centre have to decide how much of mining can be permitted within, say, 25 years or 50 years or 100 years… At the rate at which leases have been given, we don’t expect resources to last beyond 25 years. This kind of a policy cannot be permitted,” reasons Mohanty.
Friends, I have given these calls in past.I usually give calls on fundamentals.The calls I give have later been seen that big investor took stake in it.Like Mcnally Bharat , I used to recomend even when I use to write regularly at MMB(Money Control Message Board) from maybe 25-30.I recomended it here around 50 and later RJ took stake in it.One can see his wife name in SHP of Mcnally Bharat. I gave the call of Stride Arcolab around 330 and RJ took stake laetron.I recomended Srei Infra way before RJ decided to take stake in it.I even recomended Vadilal Ind at MMB and lateron RJ took stake in it though I have almost not mentioned Vadilal Ind here.I am though not sure about it. There have been instances when I gave a call on smallcap stocks and lateron big player got interested in it. I still feel that stocks like PSL Ltd,Venus Remedies Ltd,India Glycols ,Super Spinning, Lumax Ind, Rico Auto,Supreme PetroChem, Vishnu Chem, GNRL, Arrow Textile, R S Software, 8 K Miles etc will give excellent returns in long run say from 2-3 yrs from now. I remember I metioned 8KMiles in one of my post and I haven't yet received any further information from my readers on this stock which I mentioned as a dark horse in cloud computing. What I do here is give stocks and maybe sometimes I discuss in detail about it depends upon my leisure but it is you all who needs to find more facts on your own and discuss with me.I am always open with discussion like that unless someone is asking the same query again , I always reply. Coming back to market, I feel that we are nearing the next bull run which will take the sensex to newer high.When that can happen I can't predict but that will happen and when that will happen people will feel that we missed those stocks which were available so cheap. No one can time the market.
While googling I found this site where in the owner himslef has picked up some ideas from my blog with due credit to him that he wrote my name while writing at his site. I donno whether I am doing right or wrong while putting the link of the site here or not but I thought let me put it here and let people go to that site and read all back post from this site, the recomendations etc atall...... I know there are many who were very happy when I wrote an open Apology.They actually went mad to see that I am kneeling down in front of my readers and what can be a happier moment for them then this?This is only one of the site and I don't know howmany others must have written on their blog and other forums about me. Well, I care for none. What I want to do, I do it.Once I decide I want to write an apology I write it.That's it.....Even today I am not ashamed about writing it because I know what I am doing and why I am doing.Whatever I do, I do it with all good intent coming straight from my heart....
Friends, I have written so much on each and every aspect of stock market that barely someoe needs to learn anything more from somewhere else. Read my post on:
There are many topics which I have covered here on individuals like Nemish Shah, Radhe Kishan Damani, Rakesh Jhunjhunwala, Manu Manek , then Peter Lynch, Warrenn Buffet etc etc....and on various topics outside stockmarket as well... Just try to write a word what you wants to know in "search" section at my blog and you will definately come out with something on it. Even if by any chance I will be not able to write at all any time,I have to stop writing here for any reason, still I am sure this posts written on this blog will always act as a path finder for anyone who wants to play in stock market.....One has to just open the blog and read my back post and I am sure they will get enlightened from it for years to come.......
I am a fan of songs sung by Asha Bhonsle, Lata, Kishor Kumar, Rafi,Mannada,Hemant Kumar....Mukesh....
This is an excellent song sung by Ashaji , music compsed by Ravi..from the film Phool aur Pathar.....try to hear other songs from this film...Ravi was an .excellent composer who used Ashaji's voice as good as O P Nayyar and R D Burman used .Ravi's master stroke music can be heard in Waqt, Hamaraz where he took the voice of Mahendra Kapoor in all songs, then film like Ek Phool Do Mali,Khandan(Old), Admai aur Insan......which one of the song I like the most I am putting the link down here....
again g8 combination of Ashaji and Ravi......hats off to both of them.... I know these are old songs but readers will love to hear and see them........they are everygreen songs to me......
It looks like readers or critics are looking at this post in wrong way.No way I am belittling the site which link I gave here. Ofcourse the owner respects me writing Rajubhai.I have nothing against any one here who wrote in comments nor anyone who wrote agianst me somewhere else. What I was trying to do here was I am showing what I think, like when I write, "I do what I like"...and I am fully aware when I write something , I know what I writing and I have no regrets about it. Nothing else is there except this in this post.I wanted to show that even if someone has written for me somewhere else which I cameupon I still feel that I am not regreting nor ashamed of what I did because I thought what I did was correct. That was the bottom line or that was the real meaning of giving the link and writing this post......
MUMBAI - India's Astral Poly Technik Ltd. Thursday said the company is in preliminary talks with U.S.-based specialty chemical company Lubrizol Corp. to set up a plant in the country's western state of Gujarat. Earlier Thursday, the Business Standard newspaper reported that Lubrizol, part of Berkshire Hathaway Inc., is in talks with Ahmedabad-based Astral Poly to set up a chlorinated polyvinyl chloride unit at Dahej in the state. "We wish to clarify that the discussions are at very preliminary stage and the same are subject to detailed negotiations. The company would announce its final plans as and when things are finalized," Astral Poly said in a regulatory filing. The newspaper also reported that Lubrizol executive Tom Frubus and Astral Poly Managing Director Sandip Engineer Wednesday met Gujarat Chief Minister Narendra Modi and other government officials to discuss the planned investment in the state. Astral Poly is a maker of plumbing systems for residential and industrial applications and also specializes in a range of plastic products.
After seeing UTV getting rerated and getting delisting offer @1000 from Waltdisney where Samir Arora is betting on higher delisting price which is possible in any circumstances I am glad to see my conviction becoming a reality.I am glad to see what Samir Arora was not able to see when UTV was at 300 odd which I was able to see that price as I recently read that Dr Samir Arora is betting on UTV to get a 20-30% or 40% more return from the delisting price of Rs 1000.00 as he has bought it recently UTV which he spoke about it in his recent interview at CNBC. I gave the call of Alfa Laval on oct 2009 and that is almost 2 yrs from now but it has almost doubled in 2 yrs and gives 100% return when people are seeing their PF getting deteriotated day by day. Friends,I know people don't like my style of giving recomendation as I give loads of calls but that I am doing so that investor can have variety of option to chose. Believe me, I never try to sell my stocks when I give calls here as I have written many times that I am a very small player that can have any impact on my selling or my giving a buying call or recomendation.My holding in any stock at any given time is so small that it makes no difference on market movement of any perticular stock.I am not that much dumb not to understand that... Friends , it all depends what you buy and that again depends on LUCK.I have written many post regarding LUCK.This 4 letter word is worth a weigh in GOLD.If she is there for you then you are DONE.Nothing works when LUCK works for you. All decision becomes good and all step becomes fruitfull and you keep on quoting what you did to become successfull and how much you work hard and that has paidoff but lacs and crores of people work hard and barely 2 or 3 or maybe 5-10 people gets successful. I feel that following stocks needs to be tracked and buy on dips and whenever one feel like buying. 1) Tips Ind( Buy back at 48 done) 2)Pondy Oxide 3)Investment Precision and Casting 4) Rico Auto 5)Selan Exploration 6)Dolphin Exploration 7)Petron Eng 8)Gayatri Project 9)Simplex Casting 10) Pitti Lamination 11) Patel Airtemp 12) Supreme Petrochem 13) Super Spinning and many others. Yashraj Containeurs Ltd is making new high at 49.90 . As one can see in Alfa Laval , my calls takes time to prosper.Alfa Laval took 2 yrs to give return but when it moves we love it in the way that we see out PF going up instead of going down with market. Friends, this blog I created for small investors .I wanted them to learn something from my past mistakes and how market behaves. I have discussed everything from F&O to how players plays.I have even written about how to pick multibaggers even though somone have different opinion and I don't mind that.It should be always be like that.What is good for you needs to be followed.That is the bottomline. The best thing to do is pick what is good and discard what do not suites you.Simple.....
Friends, With crisis in EU countries becoming dangerous and I just read today that Greece will default in 4-5 yrs and with that PIIGS (Portugal, Ireland, Italy, Greece and Spain)sitting on $3 tr debt coming for the default the figure that comes out is $3 tr and that is much bigger then the Lehman Br which was around $600 bn. In that circumataces I fear that Indian Market can also go lower and come to 15k or even lower. But the beficiaries will be Asia and among them notably would be China, India and Korea. Let the things unfold in next 3-6 months and we will see our market making a bottom.What bottom we will see is hard to predict but after that the inflows will come in economies like India where the growth is there and there is no danger of any default like PIIGS. But the advantage is India, China and other Asian countries like Korea will become safe havens for the FII's. Here in India the Int rate has peaked out and I actually don't feel that RBI can increase the rate in Sep again. I feel that with Crude coming down and can go down further , the inflation should come down with good monsoon seen in later part of the monsoon season. But as the talk of PIIGS countries keeps on coming and untill the outrcome is not decided clearly what is going to happen, market will remain volatile.Market hates uncertainty and when the certainty will arrive, whether the Greece or Ireland or Spain will default and that too for how much and what will be then impact on the global economy, market here and in west will remain volatile. After that I feel there can be an unprecedented run for our market which will last for longer period then expected by players and market participants.
at Rs 169 and my heading was " Petron Eng A star in making" and even today it is Rs 326 and giving 100% from my call.
The reason to visit them again is Petron Eng has come out with excellent results and the NP has doubled from the last year same time.Last yr in June the Np was 4.99 cr and this yr it is 9.35 cr.
Would like to recomend again to buy Petron Eng at dips.The sales has gone up and so has the NP.
Lately Navin Flourine my old call and even recently I recomended with India Glycols is up in last 4-5 trading session and is at 370 which was hovering around 330 4-5 days back.
Looks like another bumper result is awaiting for Sep qr as we are ending to second half.
I have been recently reading the "Autobigraphy of a Yogi " Yoganand.His autobiography is translated in many languages and I will be writing on it soon what I read but what I will say here is, I am awed actually overawed by the contents in it. Talking of Einstien relativity theory and astronomy and metaphysics from a person who didn't learn Physics in his entire life when talks on Einstien theory I was surprised while Sri Yogananda discuss all this things. He passed his graduation with passing marks and still he can talk on all these things has puzzeled me and left me thinking on it. I am about to finish it and will like to write on it sometime on it specially on Kriya Yoga. I myslef have been practising Yoga since my childhood from the age of 13 though the instructor was a physical teacher but he was good with some Yoga asanas but the seeds that were sowed at that time in me by my teacher took me to take more interest in Yoga Asanas and Pranayamas and I almost regularly practise it even now. I did joined a Shibir on Yogaasanas and Pranayamas.But there the tutor was so excellent that after that I have not to learn more from anyone else. Now after reading the Autobiography of a Yogi now only thing I feel like doing is going to Calcutta and get initiated in Kriya Yoga. I know these are personal matters which need not be discussed here but I feel that I need to write here that if possible one should try and read this "Autobiography of a Yogi".It is worth a read and maybe someone can get awakened from it and benifitted from it and may even follow the path of trying to know the one and only..." Param Bhrama",The Ultimate.......I remember I once wrote in one of my post that , only and only human being has got the power to get diluted with the Almighty. "Aham Brahmasmi"In Gita Krishna speaks as many times that Human is as equal to GOD.If he is everywhere then he is in yourself as well. I don't go to temple nor pray to God.I still believe in GOD and still I remain Hindu.That is the beauty of Hindu religion.There are no bindings.There are no rules.If one never goes to temple he still remains Hindu.If he never pray God he still remains Hindu.No one can debar him/her from the religion.
One who is born Hindu remains Hindu for ever. Without praying God, without going to temple.
If I decide to go to Chruch and pray Christ or mother Mary for whole of my life still I remain Hindu.If I decide to go to Mosque and decide to do namaz for whole life every day still I remain Hindu.If I go to Gurudwara and pray Nanak still I remain Hindu.I can follow any religion and still I remain Hindu.
What a religion!There are no inhibitions.There are no rules.There are no rituals.Hinduism is a way of life.There is no defination of being Hindu.Actually there is a negative defination in our constitution which says that as he is not Christian, as he is not Muslim, as he is not so and so and hence he is Hindu.There is no perticular defination to say that if he does so and so or if he believes in so and so God he is Hindu. We have seen many Hindus going to Ajmer Sharif or even going to Dargah and do namaz and still no one dared to debar them from being Hindu. Please do not take this as a preaching of Hinduism nor take it as I am belitteling any religion.I am just writing what I am feeling like sharing here with you all and should not be a challenge to any religion or person. I will delete this post if anyone feels their feelings are hurt.As I use to write sometimes, when my mind start wandering it has no boundries.It wanders way out of the world things and thinks beyond imagination and even try to analyse things which may be incorrect in someone else thinking and hence do take it as a pinch of salt and if feel like disregarding then do it that way.I am just putting down my thoughts that are coming to my mind instantly while writing this post.
I came upon this wonderful article written on moneycontrol website and I can't resist to post it here....
Dear Mr Terrorist,
So you think you have succeeded again. In July, you rattled Mumbaikars with your triple blasts in crowded areas. On Wednesday, you did it again outside the Delhi High Court.
Let me first congratulate you. After all, it takes enormous “courage” to decide to kill so many people you don’t know from Adam. It is a selfless, secular act – for you will never know whether you killed friend or foe, members of one community or another. There is nothing more secular than a terrorist act which kills or maims all without fear or favour.
But we also need to offer you our condolences. Your cause, Sir, has not benefited from that loud bang. Not only do we not know what your cause is, even if we did, it can only lose you public support.
An NSG team investigating the site of the blast outside the Delhi High Court in New Delhi on Wednesday . Subhav Shukla/PTI
We understand that there is an email from the Harkat ul-Jihad al-Islami (HuJI) claiming “credit” for the Delhi blast. Did you send it? I am sure the email has a long list of grievances – and was possibly timed to coincide with Manmohan Singh’s visit to Bangladesh, which has of late been helpful on tackling terror.
But how do we know if this is your cause or an effort by someone else to hijack it?
In short, till we can be sure you are you, we can only speculate about your real motives. Maybe you just like scaring people and driving relatives and friends to tears. Maybe you just like to have a good laugh when our leaders mouth the same clichés after every terror attack, and our TV anchors work up a frenzy over how we are sitting ducks – and start speculating over whodunit.
But let me tell you, if these are your only motives, we can offer you better options for free – without going through the ammonium nitrate stuff you seem to be so fond of. India is a huge country. Some part of us is always facing a tragedy, and so blood and tears are never far from us. We have become so inured to it. Do your worst, and it still doesn’t stop us for more than a few hours, or at best a few days.
You can have as much tragedy, grief, comedy or stupidity as you can handle on any given day. Why, just the other day we had politicians in mortal combat over who is more corrupt. The show was a riot.
But, let me ask you a question. Whatever your cause, aren’t you yourself getting tired of it? Blast after blast, we have gone through the same motions as a country and we have got back to living life. Not because we are a fatalistic lot, or unusually optimistic, but because that is the only option we have as a people. The sheer incompetence of our leaders makes us self-reliant.
So what do you get out of it?
So please emerge from your foxhole and tell us about your cause, and we will help you find enough candlelight-wallahs to take it up. If nothing else, we will send your message to Arundhati Roy – and she will take up your cause, no questions asked. You will also get an eloquent defence in purple prose (she won a Booker for it)you’re your dastardly act. (If Maoists are Gandhi with a gun, maybe you will be declared Nelson Mandela with RDX).
We don’t know if you are an Indian or someone from outside. If you are the former, tell us your grievances (anything, in fact, for we can collect a crowd for any cause – from Gujarat to Kashmir to anti-corruption). Maybe you are just a poor, hungry Indian who wants to hit out at people who are more prosperous). But do tell us. At least some of us will listen.
If you aren’t a citizen of this country, please treat this as your own and tell us your cause anyway. Whether it is Palestine or Sri Lankan Tamils or Myanmar or globalisation, we have intellectuals at the India International Centre—just a few kilometres from where you set off the blast—who are always willing. They are agnostic to what kind of cause they take up. They are the causerati. Give them a cause and they will organise a full-day seminar on it – and even some kind of disturbance to get it covered on TV.
Our worst fear is that you don’t have a cause at all. You may be just one among millions of frustrated people suffering for personal reasons—a spurned love, a lost court case—and want to show the world that your feelings cannot be trifled with. But let me tell you one more frustrating thing about India: terrorism does not work here. Not because we have great resilience or innate strength. But because we have no other option but to pick ourselves up and get on with life.
There are simply too many of us living in India trying to make a living here—and we are too diverse or too callous or too careless or too preoccupied with our own problems—to be rattled by a blast here or a terror attack there. Today, even as Delhi is aflutter over its blast, every other part of India is continuing with its life as before. But don’t think you can achieve more by having blasts in many more cities. We have even more cities that you can handle on a decent day.
A week is the most we give to panic and anger. After that, we get back to our normal lives.
9/11 rattled America so much that it went to war with two nations and spent $4 trillion and bankrupted itself enough to earn an S&P downgrade. But it has still not learnt a simple lesson: that you can’t ultimately fight determined terrorists beyond a point. As for handling freelance terrorists and franchisees—you could be one of them—forget about it.
It is time you too learned a lesson: your terror does not work – at least in India. We are unable and incapable of taking it seriously as a nation.
But do tell us your cause, Mr Terrorist. We have people who listen – even if they can’t ultimately do much about it.
With best regards
An Indian My Comment: I think a year or so back there was a movie released named " Wednesday" and I saw it and it was a wonderful movie where Nasirrudin Shah an excellent actor was the centre stage of the movie.It is worth seeing.....
A wonderful story I read at Yahoo and am pasting it here for my readers to read. Flipkart is an Indian Co with same platform like Amazon and one needs to keep a watch on it when the IPO will come.....
By Arjun Kashyap BANGALORE (Reuters) - On some days when they were starting out, the Bansals would get on a motorbike to make the rounds of book warehouses around Bangalore, ride back to their two-bedroom apartment and package up orders for online customers. It was a humble beginning for Sachin Bansal and Binny Bansal, two ex-Amazon.com software developers who set out in 2007 to beat their old employer at its own game long before the world's top online retailer had even drawn up plans to enter the Indian market. "We were doing everything ourselves for the first four to five months - from packing to shipping. Because our volumes were very low, our courier partners would sometimes refuse to pick up items from our apartment," Sachin Bansal recalls of the six months before they moved into their first office. "So we used to get on a motorbike, hold the shipment in our hands and personally deliver them to our Bangalore clients." In those rocky first days, Sachin told Reuters, the Bansals' suppliers -- seeing two youngsters who had quit stable employment with a reputable firm to go it alone -- would sit them down and counsel them to get a proper job. The young Bansals have since been feted at home as poster boys for entrepreneurial India, establishing their company, Flipkart, as a leader in the fledgling Indian e-commerce market. Flipkart is now India's biggest online bookseller, with over 10 million titles distributed from warehouses in five cities. It has branched from books into mobile phones, appliances, gaming consoles, music and movies, and now sells 10 products a minute. It generated $11 million in sales last financial year, expects revenues to cross $100 million this year and is aiming at $1 billion by 2015. That sharp growth trajectory has attracted $31 million in funding from U.S. venture capital firms Tiger Global Management as well as Accel Partners, which has a stake in Facebook . Sachin Bansal declined to comment on a media report this week that Flipkart is lining up a $150 million fourth round of funding, but said earlier there are no current plans for an initial public offering. Flipkart's business model and even its website resemble those of Amazon. But as a company it is dwarfed by the U.S.-based giant, whose revenues stood at $34.2 billion last year. It is possible to order Amazon products from India, but the cost of postage is high and delivery is slow. Amazon still has no formal presence in India yet, though a source familiar with the matter said it is mulling plans to set up in the country next year. "Amazon's idea is not new ... It's all about the execution," said Sachin Bansal, 30, now chief executive officer of the company he co-founded. Sachin Bansal and Binny Bansal, Flipkart's 28-year-old chief operating officer, are not related. But they both grew up in Chandigarh, they are both alumni of the prestigious Indian Institute of Technology (IIT) in New Delhi and they briefly worked together for Amazon in Bangalore, the southern IT hub where numerous global companies have back-office operations. E-FUTURE? There is little doubt that e-commerce will one day be big business in India, a country of 1.2 billion people whose rapid economic growth is adding millions to the middle class every year. But for now it is a difficult and diminutive market. Despite its vast population, India has only 52 million active Internet users and only 40 percent of them have shopped online. What's more, fewer than 18 million people use credit cards, and most of them shop offline. "The sophistication of the Internet user is the largest challenge. Now, there are between 15 to 20 million sophisticated users in India," said Subrata Mitra, a partner at Accel. To get around their clients' credit card-aversion, the Bansals offer cash-on-delivery for their products, much as a pizza company does for dinner at your door, and this accounts for 50 percent of Flipkart's sales. But the market outlook is bright. For one thing, while printed book sales are slipping in most western countries, India's $2 billion book market is growing at around 15 percent a year thanks to rising literacy rates, the swelling ranks of middle class readers, and a thriving domestic literary scene. "I don't see offline bookstores closing down anytime soon like they are in the U.S., where the physical book market is shrinking," Sachin Bansal told Reuters, but he said the strong demand for books would help online sellers as well as traditional high street stores. Then there is the Indian e-commerce market, which is expected to grow by 47 percent to more than 460 billion rupees ($10 billion) this year, according to the Internet and Mobile Association of India. Online travel is for now the dominant sector. Just last year, Indian online travel firm MakeMyTrip Ltd raised $70 million in a Nasdaq initial public offering. "By 2015, we're expecting India to be one of the largest Internet-based economies. All these companies are at a stage where they can explode, depending on broadband connectivity," said Mritunjay Kapur, India head at Protiviti Consulting. Rivals in the Indian e-commerce market include Letsbuy.com, which sells electronics, and InfiBeam.com, which sells electronics and books. Anand Dikshit, executive director at PricewaterhouseCoopers in India, is more cautious about an industry now in a "trial-and-error" phase. "I am not gung-ho on this in India right now. Let's see where these companies are after a couple of years because the sustainability is more important. There are no sustainable models as of now," Dikshit said. The Bansals, however, are optimistic. They expect higher margins from non-book products, which now account for 60 percent of revenue, and are even looking forward to the competition from Amazon. "Amazon entering the country will be a good thing for e-commerce, which is very small in India in relation to its potential," said Sachin. "The largest challenge we face now is to make e-commerce more viable for people to come online and shop."
Setting up flipkart.com
PrefaceBrowse, click and wait. Online book-shopping should really be a breeze. But all too often, in India, the wait turns endless, and frustration mounts. There could be disappointment in store at various levels. Either the book is out of stock, or the book arrives late, or sometimes never arrives. It is the freedom from this frustration, and the unfailing efficiency of its service that has contributed to making Flipkart.com the most popular Web site to buy books in India. At a recent e-commerce event organised by VC Cirlce in Bangalore, not a session went by without a reference to Flipkart. One panelist remarked that if Flipkart had not launched in 2007 and if makemytrip had not gone for an IPO, we would not even be talking about e-commerce in India today.
Sachin and Binny Bansal (not related to each other, but friends since their school days), engineers, book lovers, travel buffs and founders of Flipkart.com
Chapter 1 – The Beginning –
Sometime in 2006, Sachin and Binny Bansal found themselves at the Bangalore centre of Amazon.com. The two young engineers were drawn into the entrepreneurial, technology-obsessed and metric-driven culture of the firm that swore to be the earth’s most customer centric company. There were stories of how Jeff Bezos, Amazon’s founder, would visit the warehouses and get his hands dirty, never failing to get a valuable insight or two in the process.
And of course, there was the engineer’s focus on efficiency — the urge to automate and measure in order to make better decisions. Sachin and Binny Bansal could get a definite sense of what it takes to succeed in e-commerce: A relentless focus on the back-end. This insight eventually helped them when they set upon their entrepreneurial journey.
The young engineers were getting restless at Amazon and wanted to do something on their own. It did not take long for them to decide on e-commerce; and selling books online was the obvious choice.
In many ways, it was too obvious a choice. Even at the start of the dotcom boom in the Nineties it was fairly obvious that the books business will do well on the Net. The business model can’t get simpler than it does in books: Tie up with book distributors, courier services and a payment gateway — and you are in the game. The margins in this business are large enough to cover the costs. A typical book costs Rs. 300. Of this, 10 percent goes to the publisher, 8 percent towards overheads, 10 percent to the author, and 15 percent towards marketing and distribution. Retailers typically get 30-40 percent, sometimes even 50 percent. An online retailer gets the same margins, and saves on retail space in prime locations.
India had its own set of online book stores even in the dotcom boom days. “Some of them were launched with great promise, but none of them really picked up,” says Anshul Chawla, managing director of UBS Publishers and Distributors, which supplies to a dozen online retailers, besides running its own online bookstore. Today, there seems to be a rush of online bookstores.
Chapter 2 – The Firm –
The idea of selling books online wasn’t new. Amazon has been doing it since 1995. Nor was Flipkart the first to try it in India. Yet, Sachin and Binny Bansal saw that they could still make an impact. When they came in there were two relatively big players in the market — Indiamart and Rediff Books. “We knew there was nothing fundamentally different that we can do. We have to figure out ways to do things better than others,” says Sachin Bansal. “We started by saying, if we have to satisfy our customers much better than others, what should we do?”
One aspect was offering customers something that others were not. At that point of time, free shipping was not the norm. Pre-order of books was limited, cash on delivery was not an option for consumers. Flipkart offered these, fully aware that others would follow. The key was its ability to launch such offers over a period of time, and to do that it had to get its back-end right. It broke the different elements of the books business and tried to do better than the competition in each one of those. That clicked for it.
These days, Flipkart sells two books a minute. Two venture funds — Accel Partner and Tiger Global — have placed their bets on the firm. Industry players say about Rs. 100 crore worth of books are sold online (that’s about a percent of all the books sold in India), and Flipkart does a quarter of that.
Chapter 3 – The Plot Thickens –
Sudhir Sethi, founder chairman, IDG Ventures India, which has invested in e-commerce companies, says that in one way, entry barriers are low for online retailers, but in another way, they are not. “Getting the logistics right is more difficult than one would imagine,” he says.
That, the two Bansals found out soon enough. In the US if you want to cover about 80 percent of all the books that are published, you just have to tie up with three or four distributors. But in India you have to tie up with hundreds. A typical customer in a bookshop knows that shelf space is limited and the books she will see are the ones in demand. An online customer sees no need for such restraint. “Many books that we sold, we sold just one copy. We might never sell that book again, but the customer who bought that book will come back for more,” says Sachin Bansal.
But they found the distributors far from enthusiastic. “When we first approached a book distributor, we thought they would be enthusiastic — after all, we were offering to sell their products. But people like us were approaching them every day, and they were not too impressed,” says Sachin Bansal. Besides, dealing with an online bookstore is not the same as dealing with a brick and mortar bookstore — the catalogue had to be updated more often, and deliveries had to take place daily based on the customer order. They persisted anyway, often altering their processes to fit the suppliers’ way of doing things. The number of suppliers was 10 when the Web site started; it is now 500.
“But, what’s really important is predictability,” says Subrata Mitra, Partner, Accel Partners, which has invested in Flipkart. Mitra, who sits on the board of Flipkart, feels you need a system to track where books are available and predict how soon and reliably they can be delivered.
Chapter 4 – The Good, the Bad and the Ugly –
For the fledgling success, it’s a tough balancing act. To increase predictability, it should ideally hold a large inventory; but doing that with no clarity on when it will be used, will make costs shoot up. The system the team developed — it’s still evolving, says Sachin Bansal — helps optimise the use of warehouses. Flipkart has four warehouses; all are being expanded. “The one thing they got right is the focus. Unlike other online retailers who are into a lot of products, the two Bansals decided to focus on books, get that right and then move on,” says Chawla of UBS. Flipkart is now moving on. It has started selling movies and music online, and more recently, mobile phones. Movies and music do not alter the business model much. In mobile phones, however, margins are lower; but since the value per piece is high, it’s still profitable.
Getting into other segments is a must for Flipkart because books alone cannot give scale. “We want to eventually sell everything that can be sold online. That’s the reason why we chose a neutral name like Flipkart. Still, we believe books will be the staple for some years to come, given the growth potential. We have an advantage in this space,” says Sachin Bansal.
Sceptics argue that India is still a brick and mortar market, and people prefer to buy books from physical stores. Flipkart’s argument is that bookstore chains are an urban phenomenon and there is a huge demand in the smaller towns and cities. Online retailers could also score in the area of regional language books. Accel’s Mitra says Flipkart found customers from unexpected segments. “We noticed that there are a lot of bulk orders, for 30, 40, 50 books, and we realised they were reselling it somewhere and that we were bringing a new set of customers to the Net.”
Physical stores selling books online will pose a bigger threat. Landmark has had an online store for a long time. Recently, Odyssey launched Odyssey360 and Crossword is set to launch its own Web stores shortly. They have the advantage of a bigger brand. But, pure-play Web companies tend to offer bigger discounts, and Sachin Bansal believes they also tend to be more focussed.
An even bigger threat is likely to come in the form of e-books. Recently, Amazon announced that e-book sales has equalled the sale of hardcover books. The two Bansals are aware of the potential of e-books. But they see no reason to rush into it. They believe that executing what they presently do — selling books, adding more products to their catalogues, reducing the time between order and delivery — is important. They see the segment growing to cover 10 percent of all books sold in India from about 1 percent now. Sethi is optimistic about online retailing for two reasons. “First, I believe they will rapidly transit from physical books to digital books. Bookselling companies worldwide will have to take a leap of faith very fast. Secondly, I am not commenting on Flipkart, but any company in the e-commerce space in India will have to be global to achieve scale.”
‘Paying customer’ is a recurring phrase in their conversations — perhaps to stop themselves from getting distracted by other metrics such as ‘eyeballs’ that pushed dotcoms into investing on things that never resulted in revenues. That also explains why the two Bansals haven’t done much about the way the Web site looks (ugly). Customers don’t pay for looks. Flipkart’s success depends on how well the two Bansals balance their attention between what customers pay for today, and what they will pay for tomorrow.
Recently, Sachin and Binny Bansal hired a set of designers to make the Web site look good in the next two to three months. “In the last two-and-a-half years, 90 percent of our work went in getting the back-end right — the supplier relationships, IT infrastructure, logistics and so on. Now, we think we have a pretty good handle on that. We will be launching more products shortly. It’s time to get a little more aggressive on marketing. It’s not enough to be efficient, we also need to look good,” says Sachin Bansal. More from Forbes India.
Flipkart buys social book discovery tool 'WeRead'
Accel Partners backed ecommerce site Flipkart has acquired social book discovery tool WeRead from Lulu , a US-based on-demand publishing firm. The deal amount was not disclosed.
Launched by Bangalore-based startup Ugenie , weRead is a social book discovery engine that enables users to recommend and discover books, search for authors, rate and review books as well as share and network with other book lovers. Ugenie received USD 5 mn in funding from BlueRun Ventures and Sierra Ventures in 2006 and was acquired by Lulu in August 2008.
weRead's widget is available on Facebook, Orkut, Yahoo, MySpace and Hi5. It has registered 3 mn readers and has 60 mn books listed and users can also read some books online via weReader.
Bangalore-based Flipkart started off as an online book store and now has 7 mn book titles. It recently expanded into new product categories such as movies, music, games and handsets.
Sachin Bansal, CEO, Flipkart, said, “Acquiring weRead will take our relationship with our customers to a wider plane where we will be their partner in the entire book reading experience – right from purchase to referrals. This would enable us to suggest the most relevant books to our readers based on their previous purchase patterns as well as the kind of books they and their friends like. At Flipkart, all our growth till now has been organic in nature. However, to deliver the best in class service to our customers, we have started to look at acquisitions that will complement our current service offerings. weRead is one such step in this direction.”
The weRead acquisition will give Flipkart a social recommendation platform for buyers to make informed decisions based on recommendations from people within their social network. Currently weRead directs readers to Amazon's shopping cart, this could also be sent towards Flipkart's site. According to the company, weRead will make buying online more social as it will "leverage advanced recommendation technologies and social graph information to enhance customer experience."
For quite some time now, I’ve hated Flipkart’s ( www.flipkart.com ) interface. I thought it clunky, unwieldy and pretty damn ugly. That said, I’ve been a regular on the site because they’ve delivered books quietly, efficiently and at perhaps the best prices I’ve seen any place in the country. For instance, the hardbound edition of India: A Portrait by Patrick French is now available in bookstores for Rs 699. I bought it off Flipkart for Rs 524.
But that’s not the reason why Flipkart is being talked about here. Last week, the Web site finally unveiled a new look. And boy, does it work! The interface is slick and very quick. What I liked more is that there is a version of the site that works equally well on the mobile phone.
Flipkart has introduced new categories like movies, music, games, cameras and computers. Now, if only Flipkart got into e-readers and e-books as well!
The E- commerce revolution has started.It is in nascent stage but it is on.Flipkart has made the first move successfully.Flipkart has a long way to go and if the IPO comes with reasonable valuations then one should go for it.
This E- Commerce things is going to be very big here in India with a population of 120 billion people , if things comes directly to your home and that too cheaper then other place , then who will not buy it through internet?
And when we talk of Ecommerce we need to talk of credit card payment gateway as well as for placing orders on internet only and only thing which will be used is Credit or Debit card.
Here I feel that R S Software come to my mind along with my old call Telecanor Global.But as Telecanor Global has come in some dispute with some earstwhile investor and Co still not showing up some good bottomline, I feel that RS Software is looking excellent at this price as it has become azero debt Co as well.Gave a Bonus and paid a Div of 20% as well last year....
But e shopping is coming out of age here in India and hence I feel that ECommerce will have great days ahead and hence even the cloud computing Co will also prosper.
Remember one thing, when any site you use to open and do not open properly , like say bseindia.com or moneycontrol.com or even the one I mentioned here, flipkart.com or any banking site, like bankofbaroda.com, or sbi.com any thing...(maybe here the site name may be wrong as I am just giving an eaxample) , like it takes time to open,showing discrepencies on site like words not read properly, the entire page is seen like exterme right, ot extreme left, or one get notice on internet, server not found and hence can't open the site, etc etc , it says that there is a problem in cloudcomputing.
For maintaining site , cloudcomputing plays a very important role.For any site to function properly it needs cloud computing.The type of error comes perticularly when the visitors becomes more on opening of a site and when there are multiple visitors opening a site at same time it is very necessary that all the datas like visitors visiting pages, what they are looking , products etc .......it needs to be stored in such a way that when a visitor again visit back to same site, it can show the visitor which page it visited last time.........
These type of visitor friendly things which comes up on site which we also like to have and we feel that well, it is good that it shows which page we visited last time and hence if we have to buy that thing which we decided not to buy when we first visted the site , becomes easy and saves lots of time and perticularly in a country like India where the Internet is not that speedy.These are small things which a layman do not understand but somethings is working on that......and that we call Cloud Computing.
Well, it is a very lenghty subject but as I use to write here find out what is Cloud Computing, what is E Commerce, what is Payment Gateway.....
Could computing , E Com and payment gateway will now be the buzz word.Keep a watch on 8K Miles Ltd which to me can become a dark horse in cloud computing.Find out what is 8K Miles Ltd doing.It is a listed Co in India...... I know many must have read flipkart somewhere but lacks the visibility and hence I have posted those text and also discussed it here.........hope readers will now follow it....it is all about reading the finer prints...able to makeout things comimg up from what you read.....