The time is right for India to reap the rewards of all that it has sown, and we have an important role to play in it
I am an eternal optimist. And as we start this new financial year, I am buoyant and overjoyed about our group and our country. But let me start with bursting the naysayers’ chatter bubble (I’m hopeful there are none within our group).
Carpe diem, dear colleagues. It is time for us to seize this moment. And what better zone to be in than this 'Goldilocks' one! Our broth of demographic dividend, with spoonfuls of political stability, a dash of economic reforms sprinkled with spicy global capital, has created this magic potion in the cauldron that is the Indian marketplace. One so potent that its is making the Chinese, the South Americans, as well as Europeans (including Getafix) green with envy.
The last time such a concoction was brewed was in the 1980s in a faraway land: 1) Healthy tax regime 2) Large workforce: baby boomers 3) High savings rate (rings a bell?) 4) Increased productivity thanks to manufacturing technologies, together leading to the creation of the World’s Largest Economy as on date! I have no doubt, our time has truly arrived!
Silver lining and a new playbook
And this truly is the beginning of Amrit Kaal, as many fundamental shifts are in play here
beyond the great efforts of our government. Talking of just one aspect ‘Jobs and Private consumption’; as per McKinsey, “90 million more workers will be in search of non-farm jobs by 2030”. While this is a challenge the government has taken up, what it will result in for our businesses is 9 crore ADDITIONAL potential consumers. The challenge is not of demand, but of what goods and services we can supply most effectively and efficiently. The sea is common to all, some will come out with pearls, some with fishes and some with just wet legs. We will get what we aim for!
The other fundamental yet sour truth is that money has never been cheap or easy for India. And hence, be it businesses, markets or public wealth, on an aggregate and averaged basis, there is very little room for froth and bubbles. This has made us fundamentally frugal and our growth sustainable.
Recalibrating the yardstick
Needless to say, these realities make this year pivotal for each of our businesses to set their growth trajectory right and strengthen foundations be it sharp focus, consumer-centricity, productivity-consciousness or technological leaps - especially because each of our businesses is pioneering and unique.
The House of Abhinandan Lodha has achieved phenomenal success growing 4X in revenues last year. People still mistake it as a ‘Real Estate’ play and hence probably associate the potential with the Rs 50,000 crore land/plotted sales segment. However, our pioneering vision is to make it a ‘Wealth play’; and once we see that as our market, the Rs 12,00,000 crore (yes Rs 12 LAKH crore!) that citizens add to FDs every year, and the Rs 2,00,000 crore they add to mutual funds could also become part of our total addressable market.
A meagre 1% market share of this?!
Bonito Designs is our next star kid on the block. The only one in its industry to clock EBIDTA positive months last year; it is poised for unhindered growth. One thing is clear: consumers are lapping up premium branded products and services. Apple India had its best year ever last year cornering a 5.5% market share. Indian market for home interiors is estimated to be worth nearly Rs 80,000 crore. No need to do the math here; we aren’t even talking offices and retail spaces yet!
Xanadu, another pioneering business of ours and a model that has no parallel across the globe, has had its best year since its inception. Real estate in India contributes around 8-10% of its GDP. And India is hurtling towards becoming a USD 5 trillion economy in three years’ time. What amazing potential!
A similar exciting future beckons Easiloan and BeyondSkool as soon as we consolidate our pivoted stance. And amidst all this, incredibly poised is Tomorrow Capital. The proverbial grizzly who just needs to be greatly focused by the riverbank, and catch the salmons (consumer growth-led businesses) jumping out of the river, hungry for :) CAPITAL.
So my dear colleagues, each of our businesses is destined for greatness in the coming years. Do not fret over neighbouring economies collapsing or OPEC giving the world a sudden supply cut, or the developed world reeling under never-before-seen inflation. We have and shall remain rock-solid.
The world is looking at India watching it become a true socio-cultural and economic superpower. Let us make them look towards our company for ‘business innovation, leadership and impact' as well.
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