Sunday, 18 January 2009

when young india learns to keep its b#lls

This sentiment may have appeared before, but we felt it is worth recapturing again. While a lot of companies in India have gone into cost cutting mode, many others continue to see growth and are investing in new ventures. We hail these companies.

And ask young India to not lose self confidence. Our size matters. And our poor population needs many more products and solutions. We have our own markets to satisfy....growth is only limited by our imagination.

The stock market tanked from 20,000 levels in 2007 to 8000 in sep 2008.

In this period, India continued to have 1.2 billion people and approximately 200 million households.

India has 8 cars per thousand of population (this is closer to 400 cars per thousand in developed economie).

Penetration of color TVs at 32%. Penetration of washing machines at 8-9%.

Penetration for microwaves in the kitchen is at 1%.

With such a huge unmet demand for every imaginable product category, growth in the economy is limited only by our self confidence and imagination.

Companies like Nokia and Airtel (Bharti) have grown and will continue to grow at break neck speeds. Because they are designing value for the millions of indians who have an average per capital income of USD 1000. A phone call in India costs 3 cents.
A Nokia phone costs 35 USD.

At 25%, India's penetration of mobile telephony is far ahead of any other household equipment category.

Why dont we se more innovation in TVs/ Fridges/ Washing machines that take these products to more households? Why does not the NANO inspire us further?

Why is is that foreign investors shatter the dreams of the common man by pulling our billions of dollars overnight and crushing the stock market by half? (and hence the investments of the common man?)

Why have we not yet learnt to bring in the millions of Indians living in villages and small cities into the "investor" fold? What innovations need to happen so that even a Rs 100 investment per month (4% of per capita monthly income) can be sucked up by financial institutions?

Why must we continue to look to the west for our economy's growth?

India understand's its markets and its people best.

Why should we not think of satisfying India's needs rather than worry about how deep the American recession will be?

Should not each employee in each company in India today ask what he has done to ensure that one new household has come closer to buying his product?

Ritu and Venkat

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