Friday 27 May 2016 - 5 Brands that made it big in 2016

Good companies make you think. Great companies make you feel. To be disruptive, you gotta make something that is unimagined. Your innovation will be the fear for your competitors. Create something unique at a price point that will create ripple in the market. This week, lists 5 desi brands that made it big in 2016.

1. National Payment Corporation of India

NPCI is an umbrella organisation set up for retail payments system in India. It was set up by RBI and Indian Banks Association. Digital payments is a global hot topic as it curbs money laundering and corruption. NPCI aims to switch notes and coins with digital currency across India. NPCI has tied up all scheduled commercial banks and is successfully building the digital banking structure with various regional rural banks.

NPCI is widely known for IMPS, RuPay, UPI and Bharat Bill Payment System. RuPay is India's very own payment gateway. Every payment transaction from Re 1 is backed by OTP which makes RuPay the safest gateway in the world. RuPay debit card has a market share of 38% with 645 million debit cards so far. NPCI's eureka moment was the Unified Payment Interface. UPI is an inter-allied mobile payment service which allows you to pay instantly from mobile without downloading any app. UPI can collect money from customers by sending them reminders. For eg., LIC can ping you for payment of your premium and you can just pay by clicking on the pop-up. Truly revolutionary! India now has the most sophisticated public payment infrastructure in the world.

2. Patanjali Ayurved Ltd

Patanjali Ayurved has started a war in FMCG space against MNCs. Patanjali has a strong market share in toothpaste, soaps, ghee etc. Patanjali has a brand wagon of nearly a 100 products which are manufactured in Patanjali Food and Herbal Park, Haridwar. CFO Balakrishnan announced that Patanjali has crossed Rs. 5000 crore turnover in March 2016. Global FMCG players like HUL, Colgate, Dabur and Emami are estimated at around the same margin as Patanjali. Patanjali expects its turnover at around Rs. 12000 crore by 2017 says Baba Ramdev, CEO, Patanjali.

March 2016 earning of HUL, Colgate, P&G, GSK Consumer data suggest that 'Sampoorna Swadeshi' Patanjali has defeated these brands by turnover. FMCG was considered to be the safest business by market but attractive pricing and quality products have created a massive dents in this space. Patanjali is in talks with e-commerce giants like Amazon and Flipkart for an exclusive product space.

Patanjali is operated at non-profit module and spends around 15% in R&D nearly double than its competitors an they have plans to open new food parks in Latur, Bundelkhand and in the North East. Patanjali also plans to open 50 Mega stores and 10,000 small stores through franchising. They also have plans to enter the baby care products market and sport wears to woo young Indians. The global craze of herbal products may make Patanjali an international player by 2018.

3. Rural Electrification Corporation

Both urban and rural citizens have equal right to electricity. Electricity is core component in GDP measurement. FMCG, Agriculture, Telecom sectors depend heavily on electricity. Yet, 18,000 villages in India didn't had an electricity connection as on March 2014. REC and Ministry of Power are working on an ambitious plan bring electricity in all villages under 1,000 days.

The progress of the work is digitally tracked. Garv mobile application shows that around 7,000 villages are successfully joined to grid. Most of these villages are in jungles, mountains and are basically cut with modern amenities because of the terrain and poverty. Data suggest that all 18,000 villages will be connected to grid by 2019. REC is also developing SMS based alert system which will update the user regarding power cuts and power savings.

4. LYF Mobile

LYF Mobile is a mobile handset company of Reliance Industries Ltd which specialises in 4G VoLTE devices. The company was launched in 2015. LYF Mobile is the second largest LTE seller in India after Samsung which the market share of 7%. expects LYF to be $1 billion brand by Diwali 2016. LYF phones are currently manufactured by ZTE Communications in China. LYF has made a deal with Hon Hai Precision Factory ( Foxconn ) which may manufacture in Maharashtra. The real success of LYF depends on Jio. Reliance has invested Rs. 1,50,000 crore in Jio.

5. Tork Motorcycles

Tork Motorcycles is a start-up from Pune which specialises in electronic bikes. Electronic bikes have a image of slow speed, low battery back-up. Pravin Shelke, the mind behind Tork decided to change this forever. Tork Motorcycles has developed an electronic bike which is faster than 82 motorbikes including KTM and Yamaha. A video on youtube shows that Tork motorcycle prototype did 0-100 kmph in just 8.2 seconds. Tork Motorcycles have won in several world rallies.

Tork Motorcycles has raised angel funding from Ola. They plan to launch Tork T6X by December 2016. Tork T6X will have 100km range, cloud computing, GPS navigation, quick charging. Currently, a single 100% charge takes 4 hours but innovation and government reforms may bring revolution in electronic vehicle segment.

Special Mentions - ISRO, Jio, RailTel, Coal India, Adani Ports.

- Chaitanya Kulkarni ( )

1 comment:

  1. Very thoughtful article. Well researched. Informative.