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Posts Tagged ‘Indian Economy’


Ohh yes guys, the IPO of Micromax might hit the Indian market soon. Do you know Micromax? Honestly, I was not aware of this brand unless some of my friends and colleagues bought the mobiles of Micromax. Very few people know and in fact, even I was surprised to know that Micromax is the largest selling mobile handset in India. And the most amazing story of its success is: it has done so in a very short period of 3 years. Today, it is valued at $1 Bn. As far as I have heard about the Micromax from my friends, they say one prefers Micromax because it provided dual SIM support, qwerty interface at an amazingly low cost. Yes, low cost was its selling point and as I have discussed earlier on this blog, no matter what technology you provide and what features you give, we, Indians have just one first question: What is the price? And here is where I feel Micromax is a winner. I was not surprised to know that Micromax has gained its popularity in such a short period of time and captured 5% of the Indian mobile market, as reports suggest.

So, what does it mean to us?

  • Don’t stop dreaming and dreaming big. Remember 3 years back Nokia, Motorola, Samsung and few others were household names. Introducing itself at that time and emerging as the leading player is one of the greatest example of living a life of dreams for Micromax. kudos to all the whole team.
  • Entrepreneurs don’t fear. The believe in themselves more than anyone does. And Micromax proved it with its valuation.
  • Hard work, Focus and Determination are the key to success. Its the combination of all these factors that today Micromax is going for an IPO.
  • Ideas with customers in mind matter the most. I believe what clicked for Micromax is their approach to the Indian market. They just combined the idea of iPhone, cost factor plus the Indian attitude of shifting telecom providers to suit to the cheapest calling rates at that instant of time. Apple did not lunch iPhone in India and when it did, the cost was too high that it could even be anywhere near to success. Blackberry was not in market. And Micromax launched itself at just the right time with the correct attitude.

So, guys keep dreaming and believe in them. You never know when your Idea could be the IPO of the Indian Economy!!!

Sources: http://trak.in/tags/business/2011/01/10/micromax-ipo-stock-markets/

http://micromaxinfo.com/

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Well, the Sub-Prime Crisis has now taken the sweat and blood of every economy with USA leading the list; indicating one of the worst recession in the last 30 years. Before I put my opinions, let me start with a small introduction to what is this crisis is all about. I have kept it as simple so as to be followed by any reader.

In the last 5-7 years, the reality prices soar like a bubble and as expected, it inflated so much that it got busted. The reality prices rose to the sky-high with not a single country being left affected, including India. Now, banks started with the loan system of availing the homes with almost no hassle and low interest rates riding high on the strong economic growth. In fact, later part, the banks gave loan without any scrutiny and with the options of no down payment and customers availing all the amount through loan. Customers were happy and so does the banks, The banks, then, started giving the bunch of these loan in the form of funds
to other investment firms as that of Bears. So, when everybody was happy, where did it go wrong?

The problem came when the reality sector got busted and prices fell. The customers backed out and so the firms like Bears got busted and banks, including the largest bank of the world-CitiBank recording huge losses; pulling down the US markets and the economy and many other problems.

Now, what makes India not getting affected so much with this crisis; holding strong when all the economies of the world have fumbled. The answer is CORRUPTION. Strange; right. Lets take a scenario in India to understand it better. When a house is brought, it gets registered at a considerable low price; thus, paying the remaining balance amount in BLACK money. Now, suppose, a person who buys an apartment for 80 lakhs shows 40-50 lakhs as registration in order to save tax and making out the rest from his BLACK income. Now, even though the price of the flat fall, the margin is such it has to fall considerably to make out this difference.

So, if we feel we are not affected, let us think twice in true terms. We are affected but is not visible in the short term but the long-term implications could be devastating. US economy may be struggling now but its fundamentals are so strong that it will definitely bounce back. But what about India, where major part of the country is controlled by few people, corruption and dirty politics. Not to forget, here government controls the RBI and various factors like inflation. What if they supress it for their benefits as elections are knocking at the door. Don’t forget how BJP suppressed the inflation figure during last time General Elections to put forward false “India Shining” campaign.

I support US economy here because the visibility is more and clear as they are privately owned bodies and privately owned bodies can’t take the losses onto them.

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