The game is never won until the last ball is played

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

Anuj Goenka, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur


2016 edition of T20 World Cup in Men’s cricket had once again reinforced the dictum which is the title of this blog. Both Mushfiqur Rahim of Bangladesh and Ben Stokes of England learnt the same lesson in hard way although in different matches.

Group Stage: India V/s Bangladesh 23 March 2016 Bengaluru, India

Bangladesh needed eleven runs while batting second. In first three balls they managed to score nine runs by hitting two boundaries. The batsman Rahman yelled in joy, raising his arms but the game has some other plans. The Indian team managed to defend their total by claiming three wickets in last three balls including of Rahim.The Indian players maintained their calm and claimed two catches in the deep. A last ball runout by the captain cool MS Dhoni leapfrogging and clearing the stumps where the bangladeshi batsman was more than a yard short.

Final: West Indies Vs England 03 April 2016 Kolkata, India

West Indies required nineteen in the last over to win the cup second time while England put their faith in Ben Stokes who had taken three breathtaking catches in the outfield that day. The settled batsman Samuels was at non striker end while Carlos Brathwaite, the newcomer on the crease was at striker position.

The English Fans must be hoping of another title but then Carlos unleashed his power hitting Stokes for four consecutive sixes taking away the glory as well as the cup. Who would had thought that a tailender in such a crunch situation, in a world cup final will performed such a miraculous act.

While Stokes learnt the lesson with humility, Rahim was unable to do the same. When India lost in semifinal against West Indies, he shared some tweets which were against the spirit of game and sportsmanship.

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POSCO: Victim of Red tapism

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

Anuj Goenka, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur


Pohang Iron and Steel Company POSCO, largest steel maker of South Korea, a major and dominant player in global steel industry withdraws from India citing the regulatory hurdles.

The company had signed a memorandum of understanding MoU with Orissa Govt. in 2005 to start a 12 MTPA (million tonne per annum) integrated steel plant at an estimated cost of 12 billion USD. The project since its inception had faced several political, environmental and regulatory hurdles. Even after more than 10 years, the requisite amount of land hasn’t been transferred to company.

POSCO Pratirodh Sangram Samiti (PPSS), an outfit of the local people and various civil groups had opposed the land acquisition. Along with dharna, agitation and protests, PPSS adopted the legal route and had filed several cases against the proposed plant.

In a recent hearing at National Green Tribunal NGT, the company had mentioned that it don’t want to pursue its Orissa project any further and whatever the environmental clearances were received by the company can be revoked by tribunal. POSCO was keen to invest in India considering the growth potential offered by country.

The demand for steel was expected to be doubled in India when the rest of the world is facing slump in demand. It tried to set a 6 MTPA steel plant in Karnataka by signing a MoU in 2010 but that plant was also scrapped due to similar issues most notably land acquisition.

This proceeding is a major setback for our country as India continues to lag in the list of business friendly countries. Considering the mammoth size of the project both in terms of size and value, it would had been a major boost for indian economy providing large scale employment (both skilled and semi-skilled), increase tax revenues, alignment with MAKE IN INDIA campaign by the incumbent government.

 

 

 

 

 

Maharashta: Water Scarcity..IPL..Sugarcane Industry

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

Anuj Goenka, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur


The Bombay High Court had directed the BCCI to move all IPL matches scheduled post 30th April out of Maharashtra. The decision was granted on hearing a PIL (Public Interest Litigation) filed by The Lok Satta movement and the Foundation for Democratic Reforms.

The state of  Maharashtra is facing a severe and acute water shortage. In most parts of the state, rationing of water has been ordered while the Latur district in Marathwada region is hardest hit. The PIL was filed in this context. The petitioners argued that when the citizens are facing difficulties in obtaining water for drinking and other day-to-day activities, shifting IPL will save a large amount of water which would otherwise be spent on maintenance of cricket grounds. As per an estimate, around 6 million litres of water will be used during IPL 2016.

However, this incident needs a deeper analysis as Maharashtra particularly Marathwada faces drought more frequently than rest of Maharashtra. Marathwada is predominantly sugar cane growing area. The state is the second largest producer of sugarcane in the country after Uttar Pradesh. It is also the largest producer of sugar, which is a byproduct of sugarcane.

The Commission for Agricultural Costs and Prices (CACP) points out in its report “Price Policy for Sugarcane-2015-16 Sugar Season” mentions that Maharashtra consumes around 2100 litres of water to produce a kilogram of sugar which is 1300-1400 litres of water over and above what Bihar requires (800 litres). A basic calculation implies that to produce a tonne of sugar ( 1 tonne = 1000 kilograms) Maharashtra needs 2.1 Million of water as compared to 0.8 million by Bihar i.e. 1.3 Million litres more. Effectively IPL just uses the water required to produce 2.86 ton of sugar (6/2.1). This is miniscule considering the sugar production by the state.

The point highlighted is the state authorities should guide and provide the required assistance to sugarcane growers to adopt more water friendly ways such as drip irrigation, improved variety of seeds etc. so that overall water consumption to produce sugarcane and sugar come down. Even if the water consumption goes down by 20% ( ideally by 62% as Bihar is doing the same), the state could easily provide water to all its citizens and can hold IPL as well.

Note: This blog doesn’t take into account water theft and leakages.

References:

 

IPL vs sugarcane: That’s really the equation in Maharashtra

http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&DocId=1&PageId=39&KeyId=547&utm_source=VKD&utm_medium=mail&utm_campaign=e-letter&utm_content=VKD

Unified Payments Interface

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

Anuj Goenka, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur


The Reserve Bank of India RBI along with National Payment Corporation of India NPCI launched Unified Payments Interface UPI this week. UPI essentially turns your smartphone into a bank.

It simplifies the process of money transfer with just a single click 2-step verification that any individual with a bank account and a smart phone will be the beneficiary of this new system.

The business process flow will be:

Eligibility: Holder of a bank account and a smart phone

1. Download the UPI app of a bank from Play Store

2. Link the bank account

3. Create a Unique ID/virtual address

4. Generate a mobile pin M-PIN… and you are done

How is it different from the existing system?

1. Simplified Process

IFSC code, bank account details etc. are required in the current system. However, with UPI, virtual address along with M-PIN is sufficient to transfer any amount of money ranging from Rs.1 to Rs.100,000.

E.g. Payment to newspaper vendor:

You share your virtual address with your vendor. Once details (virtual address and amount) are feed by vendor into the UPI app, the bank system will send a request for payment. You acknowledge the request, enter your M-PIN and transaction is complete with requisite amount being debited from your account.

Alternatively, you open your UPI app, enter the virtual address of vendor, input the required amount and validate the transaction through M-PIN.

2. Interoperability of various mobile wallets:

In the present system, one cannot transfer money among different wallets like freecharge, Paytm etc. UPI being promoted by RBI, will have tie-ups with all the banks and hence won’t face this issue.

 

Venture Debt: Alternate way of funding for your start-up

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

Anuj Goenka, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur


Venture debt is a type of financing option available for businesses backed by venture capitalists. In this option, the owner raise the capital in the form of debt without diluting any stake. It is different from traditional bank lending as it is targeted only towards entities which doesn’t have strong books/cash flow/assets but have disruptive ideas and backed by reputed PE/VC funds. There are no fixed standards and terms for such financing. Typically, a start-up uses this facility for

  • Working Capital Management
  • Balance cash flows: Receivables V/s Payables
  • Capital Expenditure or Growth
  • Amount of capital needed is too small for an equity round

It is complementary to the equity financing route where the owner/promoter sell their stakes to raise capital.

Benefits for Entrepreneurs:

  1. Access to capital without diluting control over business
  2. Regular service of debt increases the goodwill
  3. Can be arranged in a shorter time than equity financing option

Benefits for VCs/PEs:

  1. Reduces the risk of capital loss
  2. Provides handsome return (typically 5-15% above the traditional lending rate)
  3. Larger pool of applicants & Less scrutiny as deal sizes are smaller comparatively to equity route

 

2016- Sweet Sixteen got the worst start

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

Anuj Goenka, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur


16th year is often referred as ” Sweet Sixteen”. However, it seems the 16th year of this 21st century began with a sour note . The schedule of events covers an entire gamut from sexual harassment to finance to sports.

Throwing light on some of these unfortunate events:

  • The attacks on women in Cologne, Germany on New Year’s Eve by refugees had put a tremendous pressure on German Chancellor Angela Merkel to review her stance on asylum to refugees. The German authorities had reported that there is an unusual spike in the sale of pepper sprays and gas pistols.
  • Stock markets around the world are bleeding owing to fears related to Chinese economy and low oil prices. Behaviour displayed by global markets in January is worst in the history post 1930. Even the Indian benchmark indices Sensex closed below 25000, a strategic and 19th month low while Nifty broke 7500 level
  • The undisputed, unquestionable Modi-Shah duo took a hit on their credibility as they lost Delhi and Bihar state elections. The reform and governance oriented image of PM Narendra Modi also got diminished as again an entire session of parliament ended without any constructive work and Goods & Services Tax popularly known as GST is still not yet passed
  • Indian Cricket team lost back to back cricket matches even after scoring 300+ in ODIs in Australia. In the cricketing history this is only the 3rd instance when a team had failed to defend 300+ score consecutively. As an Indian I can take solace that the West Indies and Australia had suffered the same fate earlier

References:

  1. http://www.nbcnews.com/storyline/europes-border-crisis/cologne-sex-attack-sprees-sparks-huge-spike-weapons-sales-n497201
  2. http://www.forbes.com/sites/samanthasharf/2016/01/11/can-stocks-stage-a-comeback-after-worst-start-to-the-year-since-1930/#2715e4857a0b748c58521edd
  3. http://epaper.indianexpress.com/694226/Indian-Express/16-January-2016#page/24/2