Because individuals have consumed more branded products, consumer goods turnover has climbed 15-20%. Amul wants to double its revenue to Rs 1 lakh crore by 2024, up from Rs 52,000 crore now. In the next five years, they want to invest over Rs 5,000 in increasing milk processing facilities.
Amul increased its daily milk collection from 10 to 11 lakh litres to 22 lakh litres in Maharashtra, where the business previously collected 10 to 11 lakh litres. Amul is unconcerned about commodity stock because it will be taken care of during the summer, according to Dr. RS Sodhi, MD, Gujarat Cooperative Milk Marketing Federation Ltd. (a.k.a. Amul). Ice cream sales had plummeted by 85%, but have since recovered and are currently down 50%. However, Amul has made up for the decline in commodity prices by increasing its consumer business.
“The organised packed food brand business has benefited from Covid-19. The change to organised branded and packaged food will have a favourable influence in the next one or two years. This transformation will be irrevocable”, R.S. Sodhi remarked. He said that the market was there for the taking, even though just one-third of the milk market sector was organised. Amul would have to buy more, process it, advertise it, and expand its distribution network.
Sodhi talked to members of the TiE Pune Chapter and advised start-ups that now was the greatest time to enter the food market. Amul, according to Sodhi, used the lockdown period to strengthen the brand, reassure customers, and keep in touch with them. He explained that the food business is long-term and takes decades to build brick-by-brick, brick-and-mortar and that it cannot be done solely by sitting in front of laptops. Amul does not spend a lot of money on advertising and never spends more than 1% of its revenue on it, according to Sodhi. With the reruns of the Ramayana and Mahabharata teleserials, they were able to gain three times the benefit for the same commercial cost.
Amul is increasing its investments in milk procurement infrastructure both within and outside of Gujarat. After Gujarat, Maharashtra had the largest milk procurement, with daily collections ranging from 21 to 22 lakh gallons. Amul operates a dairy plant at Khamano, which is located between Ludhiana and Chandigarh and is investing in Punjab. It already collects three lakh litres of milk each day from 50,000 Punjab farmers. “We are paying them the same amount as a Gujarati farmer. Other players, such as Nestle, will have to pay a higher price as a result of our entry”, noted Dr. Sodhi.
Delving further into this, Sodhi pointed out, “Aside from that, we have three private plants that we have rented out. One is near Chandigarh, the other is in Bhatala, and the third is in Bhatinda. Punjab is where we’re putting a lot of our money”. Milk, pasteurised milk, and eventually other products will be the initial investments earmarked by the dairy major.
The story of Tiktok and beyond
As social media apps like Facebook, Instagram, and Twitter were staying strong in the digital age, TikTok seemed to appear out of nowhere to share the thunder with the social media giants mentioned earlier.
TikTok is an entertaining, addictive app that managed to win over the hearts of people, mainly the youth. It is a short-form video platform, has perhaps become the hottest app ever as it has over 2.3 billion all-time downloads. The growth of TikTok has been exponential.
Right after the collaboration with Musical.ly, ByteDance launched TikTok. It instantly got the reception that was expected to reach around 800 million active users. Not just the youth but people from all age groups made it on TikTok. It was also known for the creation of jobs, as “influencers” made huge profits online.
TikTok in India saw a huge rise in the number of users (over 200 million). But just when TikTok was expanding in India, India’s long-time dispute with China seemed to be ignited again. In a move that month befitting Prime Minister Narendra Modi’s “Make in India” initiative, the Indian government removed 59 Chinese-made apps, TikTok among them, citing national security concerns.
Not only was Tiktok hit hard, but also the influencers lost a majority of their livelihood. There were petitions, protests to bring TikTok back but none of them worked. Suddenly, 200 million people had to live in a post-TikTok era. Many apps like MX TakaTak, Josh, Roposo, etc. tried to replace TikTok in India, but could not create the impact TikTok did. After that, social media giants like Instagram and Facebook decided to quickly take the stage and launch ‘reels’ which did have a significant impact on the TikTok audience but failed to connect with the ‘hinterland’ part of India like TikTok.
There is also the grisly undertone of ‘classism’, as TikTok succeeded not just because of the content on it, but who was on it. Even as Facebook, Instagram, and the likes were flooded with users from urban India, TikTok gave India’s hinterland creators a voice. Once it went dark, these erstwhile TikTok users faced a deluge of criticism, outright hate, and a much reduced fan following. Even as the Indian audience continues its search to find the right successor of TikTok, many look forward to TikTok’s return with bated breath.
Credit cards for India’s unbanked, now a reality
Credit cards are an excellent way to build credit and make important purchases when cash is a bit tight. However, not everyone has access to a credit card, and this is particularly true in India, where financial inclusion remains a challenge. Across India, approximately 400 million people cannot “afford” a credit card, leaving them out of the financial mainstream and without access to a critical financial instrument. One startup, named GalaxyCard, provides a digital credit card specifically to these low-income individuals overlooked by others. And they issue these cards within 3 minutes.
This FinTech startup ties up with multiple channels like UPI, in-app services, and even offline. Around 1 lakh digital cards have been issued until now, with annual revenues touching Rs. 1 Crore.
Amit Kumar, who previously founded the mobile-based payment application firm Eashmart, which was eventually bought by PayUMoney in 2014, co-founded GalaxyCard with his friend Gunjeet Singh. The latter was closing down his own logistics firm Truckload at the time, after repeated stints as a product manager.
How does it work?
The income model of the firm is comparable to that of a traditional bank, but with smaller ticket sizes. The credit limit lies within a minimum of Rs. 1,000 and a maximum of Rs. 25,000. A user can begin with Rs. 1,000, and when the system collects additional information (such as how the money is spent, repayment time, overdue, other sources of income, dependency, and so on), the limit rises to Rs. 5,000, then Rs. 25,000, but remains below the user’s total steady income. The ‘bump up’ is based on the user’s financial situation, and it is thoroughly scrutinized by the platform to keep dangers of default to a minimum.
As fintech rises exponentially, companies tend to change their business model as technology and requirements evolve. If India’s digital banking ecosystem is to grow, it must look beyond the pool of users in urban cities, and bring in those within India’s hinterland to its fold. GalaxyCard is an interesting solution to a long-time problem faced by the unbanked, and could well solve rural India’s credit conundrum.
CoinSwitch Kuber: The story of India’s largest crypto exchange
The growth of Cryptocurrency over the years has been astronomical. People are now tempted to take their first steps into the world of crypto. To make trading, investing, and knowledge of crypto easier for people, three engineers, Ashish Singhal (CEO), Govind Soni (CTO), and Vimal Sagar (COO) launched ‘CoinSwitch Kuber’ in 2017. This began the journey of a platform that is now home to over 11 million users.
In early 2018, the Reserve Bank of India (RBI) issued a policy that did not allow the banks to support crypto transactions that forced the three founders to spread their idea outside India with the VC, Sequoia Capital funding them in the seed round. But soon in early 2020, their dream of shedding light on the digital currency in India came true as the Supreme Court of India overturned RBI’s policy. ‘CoinSwitch Kuber’ was then introduced to the people of India.
Ashish defines simplified User Experience (UX) and the decision to not provide the users with some trading features as the two factors that helped the platform overtake other coin exchanges.
CoinSwitch recently suspended crypto withdrawals for its users due to lack of clear rules concerning the currency. Clarifying the move, Ashish says, “This was perhaps the hardest call we had to take. But regulators are worried about crypto being used as legal tender and hurting the sovereignty of the Indian rupee. Further, they are worried crypto can be used for money laundering and other illicit activities. So far, no one has figured out how to stop it, but disabling crypto withdrawals in a stopgap measure till the right policies come in place.”
Talking about the future, the founders aim to transform this app into a full-time investment platform with crypto and traditional financial instruments available for everyone. Praising the investors such as a16z, the founders hope that the Indian government defines the rules around crypto better, and compartmentalize virtual currencies based on their use cases and not prohibit it in upcoming legislation.
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