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Many People are telling that GATE exam is Tough ? Reality Test is Out

Many People are telling that GATE exam is Tough ? Reality Test is Out

I would say rather difficult. I would also say hard not to. It all depends on how you want to see things.

The first year I appeared for GATE (2014) assumed it was a piece of cake if I studied very little. The three-hour ride was quite bumpy. Then I realized that if you take this happens to be difficult for you.

So I made a decision. I turned my Infosys position. I say “Nothing invincible.”

I sat for a year at home when my other friends got their first pay packages or joined some premier institutions of higher learning. Every month I took a theme from my GATE program. I’m done. In the end, I do not mean to assault. Literally I discovered the reason behind all that my mind could question. Now, this is the concept of construction. When you do not have to fear their inability to solve a particular problem. You have the concept.

Am I being demotivated? Yes I did it.

Do you have my energy? Yes me too !! Ted speaks.

GATE exam is a shortcut to enter the IIT compared to the IIT JEE exam. Any student who has base can erase the exam with an average range. To get into the best PSU, of course, you have to work hard because there are a limited number of places available. I had prepared it for GATE as hell, but could not do my best at the last moment. I will share some of my experiences

Even if you plan to enter PSU, a year of preparation is enough.
Practice is the main strategy. Get previous documents and practice different types of problems
Persistence is necessary. You might feel bad sometimes, but you should not lose hope and you should continue to prepare until the last minute. (What I needed)
If you know the basics of all subjects, there is no need to go to external training to waste time. But if you do not know the basics, going to form can speed up the preparation of your.
Attend simulated tests to evaluate and analyze door preparations
Writing short notes every time you prepare, this will save time during the exam during the last few months of preparation. (This is extremely important)
To mingle with the holders of high and good teachers of their subjects always motivated.

 

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Kerala Class 12 board exam results: Know how to check

Kerala Class 12 board exam results: Know how to check

Kerala’s directorate of higher secondary education will declare the results of the higher secondary or Class 12 board examination at 2pm on Monday. The state education minister C Raveendranath will announce the results in the public relations chambers.La direction de l’enseignement secondaire supérieur de Kerala déclarera les résultats du deuxième cycle du secondaire ou de la classe 12 à 14h le lundi. Le ministre de l’éducation de l’Etat C Raveendranath annoncera les résultats dans les chambres de relations publiques.La dirección de Kerala de la educación secundaria superior declarará los resultados de la secundaria superior o examen de la Junta de Clase 12 a las 2 pm el lunes. El ministro de educación estatal C Raveendranath anunciará los resultados en las cámaras de relaciones públicas. La dirección de la enseñanza secundaria superior de Kerala declarará los resultados del segundo ciclo del secundario o de la clase 12 a 14 horas el lunes. El ministro de Educación del Estado C Raveendranath annoncera los resultados en las habitaciones de relaciones públicas.Kerala’s directorate of higher secondary education will declare the results of the higher secondary or Class 12 board examination at 2pm on Monday. The state education minister C Raveendranath will announce the results in the public relations chambers.La direction de l’enseignement secondaire supérieur de Kerala déclarera les résultats du deuxième cycle du secondaire ou de la classe 12 à 14h le lundi. Le ministre de l’éducation de l’Etat C Raveendranath annoncera les résultats dans les chambres de relations publiques.La dirección de Kerala de la educación secundaria superior declarará los resultados de la secundaria superior o examen de la Junta de Clase 12 a las 2 pm el lunes. El ministro de educación estatal C Raveendranath anunciará los resultados en las cámaras de relaciones públicas. La dirección de la enseñanza secundaria superior de Kerala declarará los resultados del segundo ciclo del secundario o de la clase 12 a 14 horas el lunes. El ministro de Educación del Estado C Raveendranath annoncera los resultados en las habitaciones de relaciones públicas.

Los candidatos pueden consultar sus resultados aquí

Los estudiantes de la enseñanza secundaria superior y profesional superior pueden verificar los resultados en el sitio oficial de la dirección. L’examen a eu lieu en mars de cette année et 4,42, 434 étudiants sont apparus.

L’année dernière, le pourcentage de passage était de 94,05, l’un des meilleurs du pays. Sur les 4 60 743 estudiantes, 125 ont obtenido 100% y 9870 alumnos han obtenido un A Plus en todas las materias. Le conseil a déclaré qu’il s’attendait à un bon résultat cette année aussi.

Los candidatos pueden consultar sus resultados aquí

Los estudiantes de secundaria superior y la educación secundaria superior profesional puede comprobar los resultados en el sitio web oficial de la dirección.El examen se llevó a cabo en marzo de este año y 4,42, 434 estudiantes apareció.

El año pasado, el porcentaje de pase fue de 94,05, uno de los mejores del país. De los 4,60,743 estudiantes, 125 obtuvieron un puntaje del 100% y 9870 estudiantes obtuvieron un A Plus en todas las asignaturas. La junta dijo que espera un buen resultado este año también.
Les candidats peuvent vérifier leurs résultats ici

Les étudiants de l’enseignement secondaire supérieur et professionnel supérieur peuvent vérifier les résultats sur le site officiel de la direction. L’examen a eu lieu en mars de cette année et 4,42, 434 étudiants sont apparus.

L’année dernière, le pourcentage de passage était de 94,05, l’un des meilleurs du pays. Sur les 4 60 743 étudiants, 125 ont obtenu 100% et 9870 élèves ont obtenu un A Plus dans toutes les matières. Le conseil a déclaré qu’il s’attendait à un bon résultat cette année aussi.

Candidates can check their results here

Students of both higher secondary and vocational higher secondary education can check the results on the official website of the directorate.The examination was held in March this year and 4,42, 434 students appeared.

Last year, the pass percentage was 94.05, one of the best in the country. Of the 4,60,743 students, 125 scored 100% and 9870 students scored A Plus in all subjects. The board said it is expecting a good result this year as well.

Los candidatos pueden consultar sus resultados aquí

Los estudiantes de la enseñanza secundaria superior y profesional superior pueden verificar los resultados en el sitio oficial de la dirección. L’examen a eu lieu en mars de cette année et 4,42, 434 étudiants sont apparus.

L’année dernière, le pourcentage de passage était de 94,05, l’un des meilleurs du pays. Sur les 4 60 743 estudiantes, 125 ont obtenido 100% y 9870 alumnos han obtenido un A Plus en todas las materias. Le conseil a déclaré qu’il s’attendait à un bon résultat cette année aussi.

Los candidatos pueden consultar sus resultados aquí

Los estudiantes de secundaria superior y la educación secundaria superior pr

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“Hollywood studios know that wider release of their films means better business. So, e-cinema and d-cinema can co-exist in India”

 

The Digital Challenge

In India, around 23 per cent of about 9,400 digital cin­ema theatres run on the d-cinema format; the rest are all on e-cinema. But d-cinema’s share is expected to rise to 30 per cent and beyond as there are no more an­alogue theatres left for digital makeover. “With more investments, we prefer to install either a mix of d-cin­ema and e-cinema systems or get only d-cinema equip­ment,” says a theatre operator in Bhopal. Compound­ing the problem is the fact that about 3,000 theatres — mostly single-screen ones — have closed down in the past decade or so. Of the 12,000 single-screen the­atres that existed before the multiplex revolution of the late 1990s, around 9,500 are in business, of which bar­ring 100 or so, all have adopted digital cinema. These screens are either new, or ones that have been con­verted by their owners to accommodate new technolo­gies. The rest are either shut or are in the process of converting their single screens to digital cinema, say film distributors.

What’s roiling up the waters further is the steady rise in

DECODING THE DIVIDE

Digital Cinema: Resolutions in digital cinema is represented by horizontal pixel count of 2K or 4 K (2.2 megapixels or 8.8 megapixels). It reaches theatres as digital files or digital cinema package (DCP), usually 90 GB to300 GB of data delivered via satellite/f ibre-optic broadband. DCP, an encrypted file, gets copied to internal hard- drives of the server. Decryption keys are separate and time-limited. D-cinema: Adopted in North America. DCI standard requires 2K or 4K resolution projectors: defined minimum contrast ratio, precise brightness level, calibrated minimum colour gamut. Projectors, servers conform to DCI specification. Anti-piracy devices protect copyright. Multiplex chains run mostly on d-cinema. Theatres pay Rs 8,000-40,000 per month on investments of Rs 15-50 lakh. Criticism: Expensive, long recovery horizon, consumes more electricity, not fit for smaller centres.

E-cinema: Adopted in India, Brazil, China. It typically uses 3-chip DLP projectors that produce better quality than 35mm film. Servers are either DCI compliant or MPEG MXF Interop format in order to adopt both standards. Projection systems utilise 1080p resolution (rather than d-cinema’s 2Krequirement). Colour points also are not as per DCI specifications. Most Indian theatres run on e-cinema.

Criticism: Low in quality, fit only for smaller centres (Rs 8-15 lakh investments per theatre; 4-5 years recovery period), long-term, fixed fee deals where theatre pay Rs 3,000-17,000 per month.


“Hollywood studios know that
wider release of their films means
better business. So, e-cinema and
d-cinema can co-exist in India”

KAPIL AGAR WAL joint managing director of UFO Moviez

the number of Hollywood releases in India. Compared to 20-25 films that hit the theatres here in 2009-10, now more than 60 play in cinema houses in a year. The num­ber is expected to climb to 100 in two-three years. Also, revenues from Hollywood films in multiplexes have soared from 5 per cent in 2006 to 21 per cent now and may cross 30 per cent in the next couple of years.

So which format will prevail? Or will they co-exist? Ex­perts are divided on the question. “Growth will come from new screens in smaller towns,” says Agarwal of UFO Mov­iez. “These won’t be the multiplexes but two-screen thea­tres because we have four to five models within e-cinema and five-six models within d-cinema. Not everyone wants bigger investments. The share of d-cinema may margin­ally rise to 27-28 per cent while e-cinema will continue to dominate.”

Cinepolis’s Sampat believes that if you invest in a supe­rior technology, the returns will be more. “We will be on d- cinema in all our current and future screens,” he says. “While there may be more e-cinema screens, a majority of our collections come from d-cinema screens.”

Taking into account the current dominance of e-cinema theatres and, buoyed by the commercial success of Furi­ous 7 due to wider distribution, sources say the next big summer release Jurassic World might open in both e-cin­ema and d-cinema formats.

This points to the snooty Hollywood distribution com­panies falling in line with small-town Indian reality. ED

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IN DEPTH “People come into brown-label ATM outlets as the signage is that of banks. Typically, 60 per cent of all swipes are at banks’ own ATMs” K.R. BIJUMON

Chief general manager, Muthoot Finance in the back-of-the-beyond. In that case, where does it leave the cardholders if the ATM networkbuild-up slows down?

“The ATM network needs to be ramped up to 3,00,000 over the next three years so the masses can benefit from ease of accessing their accounts, cash and remittances,” says Patel ofTPSCL. Now given Mint Road’s insistence that WLATM rollout be 67 per cent in the semi-urban and rural with 23 per cent in urban catchments, it’s anybody’s guess how this math will be squared, especially for the many who already feel the pinch.

Here’s another set of numbers and you know what a qtficksand we are in. In 2013, Axis Bank, HDFC Bank and ICICI Bank added 4,133 ATMs. The SBI Group (SBI and its associate banks) put up 15,000. Punjab National Bank, Union Bank of India, and Bank of Baroda (BoB) together put up 5,000 ATMs. BoB alone added 2,800 to double its ATM network. So a total of24,133ATMs from these banks alone.

In 2014, the system as a whole added only30,855, and the lion’s share is that ofby non-WLATMs (banks).

It goes to prove that the WLATM policy has been turned
on its head. If you go by the strike rate set by the RBI (see The Asking Rate), WLATMs were to sprout all over the place.

In the veiy first year of operations (based on schemes that operators opted for), at least 1,000-25,000ATMs were to be added. So if there were five operators, there would have been between 5,000 and 125,000 ATMs in the debut year alone. Now, not all WLATMs opted for the same scheme, in which case, the cumulative WLATM deployment at just over 6,000 would have been fine. But that was not the case. And we now have a situation wherein TPSCL alone has 66 per cent share of this base!

Patel is of the view that the inter-change has to be a viable one. ‘Why were WLATMs licences issued? To bolster financial inclusion. We then have to be remunerated.” It will not happen soon. The National PaymentCorporation of India (NPCI) that decides on inter-change is split between net- issuers and net-acquirers.

What’s gone below the radar is the fall in inter-change fee over time and a cap on the number of free transactions has come to bite banks. The average ticket-size of ATM cash

withdrawals has inched up to Rs 4,200 (from Rs 4,000) as customers pull-out bigger amounts due to the cap on the number of firee-transactions per month. Again this average ticket-size is misleading; it is much higher in the metros. The result of all this: it now affects banks’ current and savings account deposits — the higher it is, the lower the cost of funds — as it fluctuates more due to higher withdrawals. In turn, it means that ATM’s have to be “fed” more cash (and at shorter intervals), which pushes up operating costs.

That’s another issue. The cost of funds for banks to feed their ATMs is at best at the prime-lending rate (it’s their own money in any case) and this holds true for brown-label ATMs too. In the case ofWLATMs, it is at PLR plus margin as it is in form of working capital. As for moving the cash to an ATM, it costs Rs9,000 a month (24X6; Sundays off). “In this, there is not much difference between banks and WLATMs,” says Aiyer ofWliter’s Safegaurd. Just that for WLATMs, since the bulk of deployments is in the hinterland, costs don’t justify the rollouts.

Bottomline: there’s no money in ATMs (for those in the business that is)! HQ

^ [email protected] 0 @tabonym

For more on financial services, visit www.businessworld.in

INDEPTH

chain Cinepolis. “We plan to scale up from 193 screens to 400 by 2017, with all of them on d-cinema systems.” Gautam Dutta, CEO of PVR, the country’s largest mul­tiplex chain with 471 screens across 106 properties in 44 cities, concurs with this view. “All PVR cinemas run on d- cinema technology as we believe in providing a quality and premium movie-watching experience to our patrons,” he says. “Also, distribution of d- cinema is simpler, faster, cheaper and piracy can be better controlled.”

However, not everyone buys the latter argument. “Both d-cinema and e-cinema technologies are encrypted, so there is no question of piracy in e-cinema,” says Vineeta Dwivedi, CEO of KSS Digital Cinema, which has a net­work of300 e-cinema screens in India.

Tussle For Access

But the debate is not limited to discussing the superiority of one format over the other — it is a very real tussle, and can turn ugly too. In March, Mumbai-based KSS accused DCI-member studios of cartelisation, and demanded ac­cess to the dubbed versions of Hollywood films to cater to audiences in smaller centres. Through legal recourse and, later, by business arrangement, KSS secured the digital distribution rights of Furious 7, but failed to make a simi­lar case for Avengers, for which the legal process is still on.

“The dubbed version of Furious 7was, perhaps, the first Hollywood film distributed by a DCI member that went

“As d-cinema is a superior
technology we don’t mind paying a
premium for it. We plan to scale up
from 193 to400screens by 2017
— all of them on d-cinema”

DEVANG SAMPAT, business head (strategy).Cinepolis 76 I BW I BUSINESSWORLD ! 15June2015

 

on our network of around 300 e-cinemas,” says KSS’s Dwivedi. ‘When Avengers was released in April, Disney declined us the rights for its dubbed version. It becomes difficult for us to explain to theatre owners and exhibitors why we can provide them one film and not the other.” Emails to DCI-member studios remained unanswered.

Who Will Prevail?

Will d-cinema surpass e-cinema one day? No, say cinema distribution companies UFO Moviez and Real Media Network, among the bigger players which operate in both formats. “India is a diverse market,” says Kapil Agarwal, joint MD of UFO Moviez, India’s largest digital film distri­bution company. “Back in 2005 when we started, the ob­jective was to convert all analogue film theatres to digital screens. Now more than 7,200 digital screens are running on e-cinema. We are perhaps the only country that does not depend on Hollywood films for survival.”

Harsh Rohatgi, president (digital cinema) at Real Me­dia puts a different slant on the matter. “DCI-imposed standards are benchmarks adopted by big Hollywood stu­dios for exhibition of their films,” he says. “There is noth­ing wrong with that. The decision of a theatre or exhibitor to install a DCI-certified projection system is a business decision and one driven purely by returns on that invest­ment.” Real Media has about 650 d-cinema theatres.

However, KSS and other smaller digital players are de­manding access to at least dubbed Hollywood films till in­vestments in d-cinema technology are made. What they cannot ignore is five years ago, d-cinema theatres com­manded less than 5 per cent of the digital cinema uni­verse; today, they have a 23 per cent share

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IN DEPTH EXPANDINGCOVERAGE

But what you have is poor footfaH at WLATMs and high operating costs; the cap on free transactions has added to the woes. And the din for a higher inter-change fee is reflective ofall this. Net effect: ATM deployment has gone down contrary to forecasts ofa fillip with the entry ofWLATMs. To put it bluntly, WLATMs may soon turn out to be white elephants.

So when Patel says “the bulk ofour ATMs are in low-tier towns to drive financial inclusion”, it stumps rivals (seeA Tellers’ Tale) who struggle to put up runs on board; and worse, don’t want to go out and bat at all. “I see no reason to deploy so many WLATMs. It makes no sense,” says K.R. Bijumon, chief general manager ofMuthoot Finance, which has put up just 200 WLATMs. I ast May, he had told BIT) ‘We have been abit slow off the blocks, but the rollout will gather pace in the months ahead. At 100 ATMs a month, we will reach 1,000 by March 2015.” He’s offthe target by 80 per cent!

Echoing Bijumon’s thoughts, Loney Antony, managing director at Prizm Payment Services, says: “Ifl don’t earn money, what can I do?” Antonyis candid thatlosses continue to mount on account of WLATMs. So he has pulled out nearly200; it now stands at 1,200ATMs thereabouts. Financials are hard to get as these entities are privately held. Nowyou may quibble it’s a case of sour grapes for Bijumon and Antony—the truth is the tellers’ tale hangs in balance.

EXPANDINGCOVERAGE

Indicash added more ATMs in FY15 than the top four banks put together

Indicash SBI Group ICICI Bank HDFCBank Axis Bank

SOURCE:RBI,NPCI, ANALYST REPORTS AND ANNUAL PRESENTATION BY BANKS

Beyond Numbers, Betwixt Lines…

At theheartofthe mess is the inter-change fee -(down from Rs 18). It’s WLATMs only way to earn bread and butter; their bellies fill up only when more and more plastic is swiped on their networks. For issuers, it’s an expense they have to bear on behalf of customers. It’s a different matter that after three free transactions in a metro (it’s five in the non-metros), the plastic-issuer charges you anything between Rs 20 and Rs 30 and to that extent, covers up for the inter-change pay out

 

What’s important here is that it holds good onlyforyour bank that pockets this fee; not for WLTAMs that issue no plastic.

Not many swipe cards at WLATMs. If 100 people queue up at abank’s proprietary or brown-label ATM, only 40 go to WLATMs. “It’s very hard to get folks in the low-tier towns to go to WLATMs as they associate banks with ATMs,” says Suneel Aiyer, chief executive at Writer’s Safegaurd, a cash-management firm that loads currency in ATMs and is also into brown- label ATMs. And you have empirical evidence to prove this lack of traffic at WLATMs from the way brown-label ATM deployers bid for the rate per transaction (RPT)—the fee they get for every swipe —to be charged to banks for a tender of63,000ATMs floated by North Block in 2012.

AGS Transact Technologies’ RPT bid was Rs 12.10. We don’t knowhow Prizm, FIS, Mphasis, Electronic Payment Systems and TCPSL bid, but it’s been gathered that one brown-label

contender’s bid was as low as Rs 7 and that the bid-range by this lot was between Rs 7 and Rs 12.10. Nowifinter-change fee at Rs 15 is asore point for WLATMs, how come some in their brown-label avatars bid low on the RPT (technically it’s not inter-change, but that’s what you earn at the end ofthe day)?

Explains Bijumon at Muthoot (not abrown-label entity though): “That business model is different People come into brown-label ATMs as the signage is that ofbanks; they are deemed as banks’ outlets. Typically, 60 per cent of all swipes are at banks’ own ATMs; the rest is at ATMs ofother deployers. Again, you get to earn an RPT on 100 per cent of the transactions. You can’t extrapolate RPT bids into WLATMs and say we are now being unfair to clamour for a higher inter­change”. There’s another matter of detail: the inter-change for WLTAMs is not Rs 15 — it’s Rs 13 as Rs 2 goes to the sponsor bank. That’s because only banks can be part ofthe Mint Road settlement system.

Also note howthe lower traffic at WLATMs that Aiyer alludes to and the high number of swipes at banks’ proprietary or brown-label ATMs that Bijumon refers to mirror each other. You now have a ridiculous situation: banks now
monitor ATMs, other than their own, with higher traction andthenplonktheir own ATMs next to them to save on the inter-change payout This has led to a slug-fest between banks and WLTAMs, when ideally, they should have played complementary roles. Oh and by the way, North Block’s brown-label tender of 2012 for 63,000ATMs has seen only a 50 per cent strike rate despite an RPT on 100 per cent ofthe transactions; and some mandate winners, sources say, have opted to pay a penalty rather than deploy ATMs.

Antony feels what has clouded the view (for WLATMs) is “this business of three free ATM transactions in the metros and five in non-metros, which has added to the confusion.

It’s very hard to say if you are in a metro or a non-metro as some places are on the borderline.” Besides, free swipes now cover not just cash withdrawals but balance-enquiries and mini-statements too. Adds Bijumon: “Some banks have put a limit on free transactions on their own machines as well. It has confounded the problem. It is hard to remember where you swiped and what for.”

Brace For An Even Bigger Jam

It’s no surprise that ATM deployment numbers have fallen. The installed ATM base at1,93,000 is lower than London- based Retail Banking Research’s (RBR) projection of2,25,000 for 2014 up to 2017- RBR—a strategic research and consulting firm in retail banking, automation and payment systems — reports are the gold standard in this line of business.

“I have never seen RBR’s numbers like this. It’s unlikely that deployment forecasts at2,80,000 ATMs (2015), 3,40,000 (2016) and4,00,000 (2017) will be met,” notes Antony. The latest RBR (2014 up to 2019) forecast paints a gloomy picture: ATMs will be at2,90,000 in 2016,3,40,000 (in 2017), 3,90,000 (in 2018) and4,40,000 (in 2019) — that is, we may cross4,00,000two years later than what was forecast in 2013.

It’s not good enough to just open millions ofbank accounts underthe Pradhan Mantri Jan Dhan Yojana (PMJDY) or gloat that the numbers have made it to the Guinness Book ofWorld Records — it only makes for agood start. To be truly effective, growth in the card-acceptance infrastructure has to be in line with the spurt in accounts.

And here’s the irony: at the other end, you have 575million pieces of plastic (553 million debit cards and 21 million credit cards); it’s been a northward soj oum all through the years. Most ofthe bank accounts opened under PMJDY (all issued with a debit-card, which is nothing but a deposit-access facility)

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CALLING THE SHOTS “‘Our goal has always been to bring the experience of a neighbourhood shop in a large store, which is convenience and great service”

Shop: Wave Telecom Owner: PrashantN. Founded: 2012 Earnings: Rs 35,000 a month

Service: Sell mobile accessories and services Android Phones. Also, provides passport and PAN card services along with delivering Amazon products

PASSPORT

KISHORE BIYANI

Chairman, Future Croup

capture that information, which Amazon can. Kiranas are hubs for booking rail, air and bus tickets along with filling up passport/tax forms and mobile recharge vouchers to supplement their revenue. Over the years they have extended services to selling apparel, mobile repairs, and ironing clothes. Reports by CRISIL and Ernst & Young put the total number of kiranas in India at 12 million (approx.) outlets and they clearly continue to dominate the $550-billion retail market. The organised retail market accounts for less than 8 per cent of sales and, in the last 10 years, the share has only crept up by 3 per cent If you can’t beatthem, join them: is what the Amazon strategy dictates.

Flipkart and Snapdeal said that the ‘kirana strategy’ is not on their immediate agenda, but Biyani’s $3 billion Future Group is committed to leamingfrom and linking up with the Kiranas.

Kirana Now

“The data is agold mine. If e-commerce businesses get this data from kiranas, it is going to change the way they run promotions and campaigns,” says Devangshu Dutta, CEO of Third Eyesight, a consulting firm. “Can they provide customer

15 June 2015 I BW ! BUSINESSWORLO I 65

The company did manage to give BWa sneak peek into what it is doing for the food and grocery business andhowitplans to use the kirana network to deliver to customers. A similar model is followed byAaramshop.com. Vjay Singh, the founder of aaramshop.com, is aggregating 6,000 kiranas in 28 cities for food and grocery delivery, and is helpingthem find customers through his platform. However, this startup is yet to raise the kind offunding required to scale up the business. Meanwhile Amazon is goingto push all its cash resources to create technology that can make the customer connect with kiranas a simple matter.satisfaction? That is the crucial test which will decide ifkiranas can migrate to servingthe mobile customer,” adds Dutta. Sources say that today kiranas deliver close to 3 lakh packages a month for Amazon, which means just through the kirana network it makes more than 3 million deliveries ayear.

Fazal Mohammed and Abdul Basit, two brothers, run their 800-square-feet shop called Care Fresh, in Mathikere, in Bangalore, with a continuous watch on the expenses. Being new in the area, they were not getting any traction from their store. Their catchment had let them down and they had no marketing budgetto connect with customers. When they heard about Amazons “KiranaNow” pilot program, which is a platform for kiranas to sell grocery through a mobile platform, the brothers jumped in.

Amazon’s team took pictures of 15 to 20 items of the inventory of Care Fresh, and placed them on the mobile website and started an online store frontforthebrothers. Basit and Fazal have access to abrowser-based system that connected with the Amazon network and the boys know, in real time, whattheir customers order. All they have to do is pack the items and generate an invoice. The Amazon delivery boy will take the package from Care Fresh and deliver it to the customer in 90 minutes. Amazon is trying to reduce this to 3 0 minutes and eventually will train the kirana to handle deliveiy. The cash will be paid back to the kirana in four days and Amazon will take 1 per cent of the total value delivered to the customer.

“Kiranas know the customer better than anybody and hence, their services add more value to our customer service experience”

AMIT AGARWAL

MANAGING DIRECTOR. AMAZON INDIA

The ‘Kirana Now’ program is available only in afew urban centres of Bangalore, but in six months it would be scaled into other cities. That said, Amazon India has already cracked the kirana delivery model with its IHS program and is in a position to scale up this segment rapidly. Kirana stores in Delhi such as Manchanda Enterprises and Lakshrm Stationaries have scaled up their businesses with Amazon’s IHS. “I hardly made Rsl5,000 a month. But with people picking up Amazon items, on a daily basis, it has upped my shop’s I business too,” says Shankar Singh, owner of Lakshmi Stationaries at Janak Puri in Delhi. Today he makes close to Rs40,000 a month.

The company had started with less than 10,000 packages with the kirana network 18 months ago; today, it is doinga million packages a month. Clearly, one does not need a crystal ball to see that kiranas will survive and thrive. Retail in India will continue with its hyper local system with no one brand or group dominatingthe consumer’s wallet Wesay let the Kiranas drive the Indian story ahead. DEI

^ [email protected]; # @vishalskrishnc\ For more on retailing, visitwww.businessmM.i-

 

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LUCRATIVE LIAISONS Neighbourhood kirana stores know their customers like none. Giant retailers have leant that now and that partnering with them is their best bet By Vishal Krishna Photographs by Bivash Banerjee

ADAN MOHAN Reddy ofBangalore is hard atworkin his 500 sq.ftshop. Bhuvaneshwari Rice Shop is his livelihood. The 21-year-old puts in 17 hours a day to earn Rs 50,000 a month. He is savvy, ambitious and uses a strappingly large smartphone. He is a digital literate, knows about products such as the mobile wallet and is open to cash-on-deliveiy to win new customers.

He’s the kind of guy Amazon has been looking for. Eighteen months ago the $89-billion e-tailing giant began its ‘I Have Space’(IHS) programme using the street comer mom and pop kirana network to deliver products to their consumers. Reddy saw his future, made a phone call and registered as a delivery partner’. All he had to do was provide his PAN card details and he was good to go.

Amazon gave him a Samsung tablet and a palm-sized credit card payment device to connect the payments to Amazon’s seller app and the cloud server on the backend. Reddy hasn’t looked back since.

‘1 got in to this program because Amazon gave me extra reach and more

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

customers,” he says. His sales increased byRs20,000a month and he made an additional Rs 15,000by delivering products ordered on Amazon at his store. “Customers would come to my store to pick up their orders and ended up buying soups or juices too. When I began delivering Amazon products to the door step ofmy loyal customers on my bike, some ofthem would ask me to deliver groceries too.”

Prashant N. from Bangalore has a similar story to tell about his store called Wave Telecom. The story of Reddy and Prashant has been replicated by around a1,000kirana stores that have joined Amazon India across 47 cities.

The Power Of Unorganised Retail

In 2006, when large conglomerates such as Reliance Industries, Future Group, the Aditya Birla Group and others, committed $10 billion (Rs 40,000 crore) to expand their retail
footprint, there was plenty of chatter about the death of the kiranas. Nine years later RIF | Businessworld finds that kiranas have not just survived, they have blossomed.

Historically, the Indian consumer has always been hyper local, preferring his neighborhood baniya. On the other hand, malls and independent stores found the capital cost of investing inlandandfillingthe godowns a losing proposition. High rentals, between 15 and 20 percent of sales and lowfootfaUs, have killed many a mall. Consumer behavior also revealed that most Indians do not have the appetite to spend on premium retail prices, and their mall spends are mainly at the food courts and the multiplexes.

Further, most retailing outlets do not buy intotheethosofa brand and in turn affect a brand’s value by not communicating the value proposition. “One of the reasons why kiranas thrive is because retailers, barring afew, have not made modem

 

RIDING WITH AMAZON

Shop: Bhuvaneshwari Rice Owner: Madan Mohan Reddy Founded:2012 Earnings: Rs 85,000 a month Service: Sells food and grocery, loose and branded rice. Mobile and passport services. Also an Amazon delivery associate Education: Graduate retailing a career option,” said B .S. Nagesh, vice-chairman of Shoppers Stop, one ofthe largest retailers in the country, in an earlier interview with B W.

The big retailers underestimated the underlying strength of the kiranas and their importance in the unorganisedj ob market. In a country with high levels of unemployment, they provide sustenance to millions. According to Kronos, the global human resource technology firm, ofthe 450 million workers in this country, only 30 million are in the organised sector, while the rest continue in ‘informal’ employment.

A lot ofthe ‘informal’ work seekers therefore dabble with entrepreneurship and the kirana store offers the lowest-entry barrier. You can start with small finance from friends and family. It is the same ‘kirana’ spirit which Uber and Ola have hooked on to and made the taxi driver their partners. It is no coincidence that some ofthese drivers actually also own small shops and drive taxis for that extra income.

The growingfast moving consumer goods (FMCG) industry feeds the kirana network that has become an endless river. One shuts shop and another opens up with new services. “Indian cities, with their culture of shopping, includingthe psychology of consumers, are tuned to being hyper local. Our goal has always beentobringthat experience of a neighbourhood shop in alarge store, which is convenience and great service,” said

 

Kishore Biyani, chairman ofthe Future Group, in an earlier interview. He says people will still go to their kirana for their daily shopping and visit larger stores for their monthly needs.

If You Can’t Beat Them, Join Them

It is no wonder then Jeff Bezos, founder ofAmazon, wants to use the Kirana network, earlier seen as competition, to grow retail sales. His target istobringS,000 kiranas under Amazon umbrella within two years. The business model for the kirana owner is simple and profitable: he earns Rs 20 for every package delivered to the customer’s doorstep, and Rs 15 for every packet picked up by the customer from his store.

Similarly, Biyani wants to link10,000kiranas to Future Group’s food parks,which make squashes and short eats, located in Karnataka and Madhya Pradesh. “The food park in Tumkur can serve all the small stores in South India and our plan is to increase our private label (branded merchandise exclusive to the retailer) reach across the country,” says Praveen Dwivedi, president ofFuture Consumer Enterprise.

The rush to connect kiranas does not stop there. Technolog} companies such as SAP, Mahindra Comviva and Infosys are working on boxing “payment and assortment” software for kiranas. They will link data generated from kiranas to FMCG distribution centres on a real-time basis. HUL has connected

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