Music is a cultural aspect of all human societies that is universal. It plays a key role in all social activities. Be it religious rituals, rite of passage ceremonies, weddings or community choirs, music brings everyone together in celebration. Music is widely created, much like literature and visual art.
The modern western world defines music broadly – an all-encompassing term to describe diverse style and genres. Music is fluid – in that it keeps changing and evolving. In the 21st century, music is helped by technological advances including the development of isomorphic keyboards and dynamic tonality
K-Pop is an abbreviation that stands for Korean Popular music. It originated in South Korea in the 1950s and is the mainstream music of the region, commonly known as K-Pop. To understand it easily, a comparison can be drawn to what Taylor Swift is in the United States.
Part of the South Korean culture, K-Pop includes styles and genres from across the world – pop, hip hop, rock, jazz, electronic dance, folk, country, disco, classical and many more as part of its traditional musical roots.
Previously, South Korean music was called gayo. It was only in the 2000s that the term K-Pop became popular. It is a term that is often used to describe Korean music and artists associated with the entertainment and idol industry of the country. American pop music culture has especially had and continues to have an effect on K-pop.
Modern K-Pop Culture
K-Pop Band – Seo Taiji
The hip-hop boy band Seo Taiji made the contemporary form of the K-pop genre in 1992. They were active in the mid-1990s. Their experimentation with different genres and styles of music as well as integration of foreign musical elements modernised and reshaped the country’s contemporary music scene. They were the pioneers of integrating rap into K-Pop music.
This led to the formation of some of the most popular pop groups in the Korean music industry. SM Entertainment was established in 1995, JYP Entertainment in 1997 and YG Entertainment in 1998.
The year 1996 also saw the first ever K-Pop group in existence which was H.O.T. This was the group that started the K-Pop culture that is prevalent and followed even today. With the emergence of BoA and TVXQ in 2003, K-Pop’s popularity soared.
K-Pop’s Effect on South-Korean Economy
Hallyu – meaning the Korean Wave – is a large influx of South Korean music, movies and TV shows into the western world. The speed at which its popularity has grown, especially K-Pop music, helped generate a large amount for the South Korean economy. This helped relieve the stress that the economy was under during the 1997 Asian Financial crisis.
The world-famous song ‘Gangnam Style’ by the South-Korean artist Psy, generated approximately USD 8 million in YouTube revenues on its release in 2012.
The seven-member K-Pop group BTS took the world by storm with their music gaining USD 4.9 billion for the South-Korean economy. The high point was with the release of BTS’s all-English song ‘Dynamite’ which topped the Billboard Global chart for 18 weeks and generated USD 1.43 billion.
The Ministry of Culture, Sports and Tourism and Korea Culture and tourism conducted a joint study that showed the revenue generated by BTS’s hit song would be able to provide approximately 8000 jobs during the COVID-19 Pandemic. This revenue was then utilized to bring these jobs to fruition.
The Hallyu in its totality has helped boost the South Korean economy by developing exports to the tune of USD 9.48 billion. K-Pop merchandise, in particular, made a significant addition to this number by raising revenue to the tune of USD 114.5 million.
K-Pop has also created advertisements to generate revenue for the country’s economy. The better-known endorsement was between Korean Air (South Korea’s National Airline) and the K-Pop group SuperM.
A group of 7 members, SuperM created a futuristic safety video that provided information on the safety feature of the Aircraft, alongside an original song and choreography that was specifically created for the video. This helped boost the national airline’s business and in 2020 Korean Air’s revenue stood at USD 11.2 billion.
Tourism and Culture are the key focus of the South Korean economy. It is highly endorsed by K-Pop groups and idols. Music and Tourism work in tandem to bring money into the South Korean Economy.
Distinctive Features of K-Pop
Generally, an umbrella term encompassing all music from South Korea, K-Pop has some unique and distinctive features and characteristics that define the music style.
Fashion Influencers
The K-Pop idols are known for their colourful and stylish clothing. Their wardrobe ranges from street-type clothing to elegant wear to themed clothing. Many K-Pop idols are fashion influencers driving current trends, particularly the younger generation.
Hybrid Sounds
K-pop includes music and musical instruments from various cultures within its structure of music. It blends traditional Korean music with western influences like jazz, rock, hip hop, etc.
Systematic Training
Aspiring K-Pop idols are selected for intensive live-in training programmes by entertainment agencies. They receive training in media, choreography, vocal coaching and practising live performances. They are placed into various groups depending on their unique style of personalities, voices and performance skills. Sometimes, the trainees can be in these programmes for a few years honing their skills while they wait to be placed in groups.
Groups
K-Pop groups usually consist of at least 7 members. Of course, there are exceptions to this rule. They generally are in numbers in a group so that K-Pop fans have a variety of idols to choose from.
Choreography Excellence
Dance routines are a critical and significant part of every K-Pop group. Choreographers work extensively with the groups to create unique routines, that are sometimes repetitive, to complement each song. These motions are created repetitively to appeal to a large fan base.
Popularity of K-Pop Worldwide
How K-Pop Went International?
In the early 2000s, bands like BoA and TVXQ started a new generation of K-Pop idols that made this music genre popular in the neighbouring Japanese market and continued to grow from there.
With the advent and help of social media and networking, K-Pop music spread rapidly and gained fans internationally not only in Asia but Latin America, North Africa, South and East Africa, the Middle East and throughout the Western world. In 2012, Psy’s ‘Gangnam Style’ hit the radios all around the world and K-Pop emerged as a popular style of music.
The last decade has seen K-Pop’s fame and recognition rise significantly, especially with mainstream western audiences. This has largely been due to the massive success of bands like BTS (BangTan Boys), a popular boy band that was formed in 2010 and Blackpink.
BTS and BlackPink
These bands have continuously given chartbuster songs. In fact, in 2017, BTS was the first group in the genre to perform at the American Music Awards.
This stage introduced them to millions of western viewers. They continue to ride on their success with the release of their first-ever English-language single called ‘Dynamite’. It topped the charts in 2020 after its release.
Growth of K-Pop
The year 2018 saw significant growth in the revenue of K-Pop. It reached a 17.9% in revenue growth and continued its climb by reaching a 44.8% revenue growth in 2020 positioning itself as the fastest growing market of the year.
According to the International Federation of Phonographic Industry’s ‘Global Music Report’ of 2019, Korean Popular Music was ranked six among the top ten music markets worldwide. BTS and Blackpink were the artists that were leading this market growth.
Some Top Names of K-Pop Music
It is not uncommon for artists to perform as a group for about a decade and then move on to establish solo careers. However, some groups are long-lasting and successful. These groups vary in their music styles, genre, number of group members or even image. The one thing they have in common is great music accompanied by great dance and performance.
Some of the famous K-Pop names in the industry are BTS, Blackpink, Twice, Red Velvet, iKon and Seventeen. There are even solo K-Pop artists who have made a name for themselves like Taeyeon, BoA, IU, Taemin and Jay Park. There are many more groups and solo artists that are known for their music and performances.
South Korea’s popular music is garnering their government’s support as the government also reaps economic benefits from the popularity of K-Pop. The government is now applying cultural diplomacy as soft power. Whatever is said and done, music brings everyone together. And K-Pop example is a great showcase for that truth. K-pop has contributed over $5 billion to Korean GDP, making it one of the big parts of the country.
FAQs
How much does K-pop contribute to the Korean economy?
K-Pop helped boost the Korean economy by $9.48 billion in 2018 and $12.3 billion in 2019.
How did BTS help South Korea?
BTS contributed about $3.6 billion to the South Korean economy.
How does BTS contribute to the Korean economy?
BTS contributed to Korea’s economy during the pandemic when the concerts of the famous band were still going on.
180 currencies are recognized as legal tender around the world today. Foreign exchange is the process of changing one currency into another for various reasons, usually for commerce, trading, or tourism. It is one of the most actively traded markets in the world, with an average daily trading volume of $6.6 trillion.
The vast majority of currency conversion is undertaken to earn a profit. A foreign exchange company also known as a foreign exchange broker or simply forex broker is a company that offers currency exchange and international payments to private individuals and companies.
The foreign exchange market is a global decentralized or over-the-counter market for the trading of currencies. The conversion rates for almost all currencies are constantly floating as they are driven by the supply and demand market forces.
Factors Affecting Currency Value
The value of any particular currency is determined by market forces related to trade, investment, tourism, and geopolitical risk.
Foreign exchange is handled globally between banks and all transactions fall under the auspice of the Bank for International Settlements (BIS).
The factors include various economic, political, and even psychological conditions.
The economic factors include a government’s economic policies, trade balances, inflation, and economic growth outlook.
Another important factor of demand occurs when a foreign company seeks to do business with another in a specific country.
Citigroup Incorporation is also known as Citi is a financial service corporation started in 1998. It is an American-based multinational company focusing on financial services and is headquartered in New York. Citigroup is given the tag of being the third largest banking institution group in the US and also forms an integral part of the big four banking institutions of the US.
The formation of Citigroup Incorporation was quite dramatic with the merger of two big firms named Citicorp and Travelers Group. Citicorp was a banking giant whereas Travelers Group was a big financial corporation. Citigroup mainly focuses on providing the best financial services to its clients.
The services given by Citigroup, in general, include facilities like providing financial services to different people falling in the organization of government, corporate, institution, etc. They also strive to provide simple yet effective financial solutions to their clients.
Pros of Citigroup Inc forex:
Includes more than one brand for its clients to select from for forex trading.
The platform allows international trading of foreign currency with its wide working area.
Allows forex trading at $0 commission to its clients.
2. HSBC Holdings Plc
Founded: 1865
Headquarters: London
HSBC website
HSBC is acknowledged as the largest bank in Europe initiated in the year 1865. It is a multinational universal bank along with a financial holding British company. It is headquartered in London. The letters HSBC belong to the initials of its origin by the Hongkong and Shanghai Banking Corporation.
HSBC is one of the biggest banking service-providing companies with more than 64 countries covered and around 40 million customers served. The company mainly focuses on providing banking and financial services along with inventing new methods to make banking easy. It also allows different financial services like trading, private and investment banking, capital market, etc.
Pros of HSBC Holdings Plc forex:
Direct access to all facilities is provided rather than the involvement of any third-party service providers.
The process is made transparent and clear by the platform for easy use.
Can be accessed from multiple regions.
3. State Street Corporation
Founded: 1792
Headquarters: Boston
State Street Corporation website
State Street Corporation is counted among the oldest operating banking companies in the US. It was initiated in the year 1792 and is headquartered in Boston. State Street Corporation is counted as a financial service provider and a bank holding company.
State Street Corporation is ranked 15th among the largest banks in the United States. The firm is responsible for providing services like cash management, services revolving around international exchanges, financial assets management, and also provides investment advisory services.
Pros of State Street Corporation forex:
It provides fully automatic service that is 100% transparent for its customers.
The service is available in almost all major regions across the world.
Initiated in the year 1869, Deutsche Bank AG is a Germany-based financial service providing firm. It has its headquarters located in Frankfurt, Germany. The firm mainly works in the field of providing investment banking services along with other financial services to its clients worldwide.
Deutsche Bank AG is considered the largest financial service-providing firm in Germany and is also included in the list of largest banks in the world. The firm focuses on four different aspects of banking services including the investment bank, corporate bank, private bank, and asset management.
The firm helps government and private organizations along with small and medium-sized businesses by providing them with the needed services in the banking field to provide ethical and sustainable services to all.
Pros of Deutsche Bank AG forex:
The forex process is completely seamless and transparent with quick actions.
Provides competitive rates on the foreign exchange currency.
Provides swift transfer of funds through its platform.
5. JPMorgan Chase & Co.
Founded: 2000
Headquarters: New York City
JPMorgan Chase & Co. website
Initiated in the year 2000, JPMorgan Chase & Co. is the largest multi-financial bank in the world at the present year. JPMorgan Chase & Co. is an America-based multinational company focused on providing services related to investment banking services and financial banking services with its headquarters located in New York City.
JPMorgan Chase & Co. forms an integral part of the large four banks of America and is currently in the fifth position of the largest banks in the world for its assets. The firm mainly focuses on providing services like asset management, investment management, private equity, etc. The services provided by them are mainly targeted at individuals and businesses.
Pros of JPMorgan Chase & Co. Forex:
Services are provided worldwide.
Has different customizable options for easy understanding of the tools and news.
Provides access to the largest committee of currency pairs.
6. Barclays PLC
Founded: 1960
Headquarters: London
Barclays PLC website
Barclays PLC was introduced in the year 1960 as the universal multinational bank based in Germany. It has its headquarters located in London and is known to provide services worldwide.
Barclays is operated as two different units termed Barclays UK and Barclays international. The firm mainly focuses on providing services like retail banking, credit services, investment banking, wealth management, etc.
Pros of Barclays PLC forex:
Provides detailed market insight to their clients.
Has an excellent customer support system.
Includes different tools for foreign exchange risk management.
7. XTX Markets Limited
Founded: 2015
Headquarters: London
XTX Markets Limited website
XTX Markets Limited was introduced in 2015 as an algorithmic trading company with its headquarters located in London. XTX Markets Limited is a non-banking firm that still comes under the list of top liquidity providers for the foreign exchange market.
The services provided by XTX Markets Limited mainly focus on equities, foreign exchange, commodities, fixed income, derivatives, etc.
Pros of XTX Markets Limited forex:
The platform is multilingual and supports 26+ languages.
Provides fair and efficient services.
The platform is counted amongst the top 3 forex liquidity providers.
8. Goldman Sachs Group, Inc.
Founded: 1869
Headquarters: New York City
Goldman Sachs Group, Inc. website
Founded in 1869, Goldman Sachs is an America-based investment and financial service providing the firm with its headquarters located in New York City. The firm is quite famous for its investment in budding startups.
Goldman Sachs Group, Inc. comes second in the list of investment banks across the world due to its revenue. And is also included in the list of Fortune 500. The firm mainly provides services like asset management, commercial banking, investment banking, etc.
Pros of Goldman Sachs Group, Inc. forex:
Has a range of tools that helps its clients with a better estimation of trading platforms.
Has a demo account for the clients to work and experience the service of Goldman Sachs to try before.
They serve worldwide.
Currency composition of world FX
9. Standard Chartered Group
Founded: 1853
Headquarters: London
Standard Chartered Group website
Standard Chartered Group was established in 1853 with its headquarters in London. It is a universal bank known to operate a large chain of units. Standard Chartered is a Britain-based multinational company providing financial and investment services.
Standard Chartered Group is known to own a network of more than 1200 branches and outlets in different parts of the world. They cover more than 70+ countries. The firm mainly works in the field of providing services to corporate and institutional services only.
Pros of Standard Chartered Group forex:
They provide excellent guidance to their clients for a better understanding of the terms and strategies.
The platform is widely spread across the globe and can give access to multiple currencies.
Their help support is quite reliable.
10. UBS AG
Founded: 1998
Headquarters: Zurich
UBS AG website
Introduced in 1998, UBS AG is the largest Swiss banking instruction, also co-headquartered in Zurich and Basel. It is a multinational and Switzerland-based financial service providing company also focusing on investment banking.
UBS AG is the third largest bank in Europe. It focuses on providing services to private and government organizations. The services provided by UBS AG fall in the category of global wealth management, personal and corporate banking, investment banking, etc.
Pros of UBS AG forex:
They provide a worldwide network with a global franchising platform to sort out their client’s needs.
The platform keeps on updating from time to time to meet up the demands of the real world.
They provide excellent customer support along with the required guide to the platform.
11. BNP Paribas Group
Founded: 2000
Headquarters: France
BNP Paribas Group website
Founded in 2000, BNP Paribas Group was formed by the merger of two different firms named National Bank of Paris and Paribas. The initials BNP came from the National Bank of Paris and Paribas came from other parts of the merger. It is a French company with its headquarters in France.
BNP Paribas is counted among the top 10 largest banks in the world and is placed second as the largest bank group in Europe. It provides services focused on the category of commercial, personal banking, and services. It also provides services for corporate and institutional banking. It also works to provide investment and financial services.
Allows access to more than 130 currencies for the FX.
Provides optimal tools to make the process more efficient.
12. Royal Bank of Scotland Plc
Founded: 1724
Headquarters: Edinburgh
Royal Bank of Scotland Plc website
Introduced in 1724, Royal Bank of Scotland Plc is a major player in the field of the retail and commercial banking sector in Scotland. Its headquarters are in Edinburgh. Royal Bank owns more than 700 branches across the country of Scotland and a few branches spread out in the major towns and cities covering England and Wales.
Royal Bank of Scotland Plc works to provide services to trusts, charities, private companies, etc. Its services include online banking, investments, saving accounts, fund transfer, etc. The firm operates by the means of a large networked server including different branches, outlets, online communication, etc.
Pros of Royal Bank of Scotland Plc forex:
They provide services concerning more than 60+ currencies from across the world.
Customized solutions are provided by them to fulfill the needs of their clients.
Provides help with advanced tools to manage the account and get more insight to risk management terms.
13. Saxo Bank
Founded: 1992
Headquarters: Denmark
Saxo Bank website
Introduced as a brokerage firm in 1992, now called Saxo Bank is a Danish firm giving out services like investment and online trading. It is headquartered in Denmark and the firm operates as an online broker platform.
Saxo Bank is in connection with more than 180 countries and provides services like investment banking solutions, online platforms for trading and investment, etc. The firm is widely spread in different parts of the world.
Pros of Saxo Bank forex:
Saxo Bank is acknowledged as the best forex broker and has an online trading platform from multiple sources.
Has great tools to help their customers get their needs completed.
Multiple currencies are supported by the platform.
Conclusion
The word “Forex” stands for the combination of two words foreign exchange. Forex means changing the currency of one country into another. This method requires different terms and rules to follow than the normal currency exchange. Foreign Exchange of currencies is done because of many reasons but not many platforms are trusted for the process. The above article contains a list of foreign exchange companies with their features.
FAQs
What are the top 10 currencies in the world?
The top 10 currencies in the world are Kuwaiti Dinar, Bahrain Dinar, Oman Riyal, Jordan Dinar, Pound Sterling, Cayman Island Dollar, European Euro, Swiss Franc, US Dollar, and Canadian Dollar.
What is the foreign exchange market?
A foreign exchange market is a trading place where the currencies of multiple countries are bought and sold at different rates just like the stock market.
Which currency has the lowest value?
The least valued currency can keep changing concerning changes in currency value. However, at present time Iranian Rial is considered the lowest valued currency.
What is forex earning?
Forex earning means the profit earned by selling goods and products in the global marketplace. It can also mean the simple exchange of only currencies in the global market as per the demand and supply rule.
It is very much important for a company to manage all its marketing sources as a whole. The Omnichannel refers to brand interaction with its potential leads across various online and offline channels (such as social media, mobile, stores, etc.) intending to provide a seamless and consistent shopping experience throughout the customer’s journey.
When it comes to the advantages of adopting omnichannel in your business, you could provide a seamless customer experience by giving customers a variety of options for convenient shopping, the ability to contact or shop at any channels for clearing house, and personalized services with closed deals only. This would ultimately increase brand recognition, customer loyalty and engagement, sales and revenue, and lower customer churn.
Omnichannel marketing is a business strategy that intends to promote a business on various channels including both online and offline modes.
In simple terms, an omnichannel is a network that integrates all its business platforms and channels and transmits accurate messages. For instance, if your company is coming up with a new product launch, offers, or advertising other business merchandise, you can share content and information about the message on social media platforms, websites, physical stores, and mobile devices, managed by your business.
Share of Retailers who have Optimized Customer Journeys by Omnichannel Service Worldwide 2020
Best Omnichannel Marketing Strategies
Nowadays, customers have more control over the buying process than they used to have before and omnichannel marketing simply intends to offer a seamless experience to the customers throughout their buying journey. The following are the top 10 omnichannel marketing strategies that will help you gain the best possible results for your business:
Customer Journey Mapping
One of the most important omnichannel marketing strategies is to map the journey of customers. Omnichannel is regarded as the best and most advantageous marketing strategy because it focuses more on the customer experience than it does on products and services. Businesses can easily post messages on various channels without any hassles and look after customer engagement at each stage of the user’s journey. Additionally, an omnichannel strategy promotes potential customers to continue around for a long time, which increases customer lifetime value by effectively focusing on that specific customer segment.
Data Analysis
A data-centric strategy is a key to omnichannel marketing, allowing you to learn more about your customers’ interest in your business, examining audience segmentation data such as their demographics, profiles, search data, and psychographic segmentation. Top-tier businesses use customer relationship management (CRM) software to gather information. Thus, using omnichannel marketing targets potential leads after studying a customer’s data and engaging with them across all channels.
Omnichannel marketing can do wonders when implemented in the right manner. So, in order to achieve the best results, an important strategy is to target the right audience and their proper segmentation. One can create segments on a different basis like location, shopping behaviour, level of interaction, etc. One can also take advantage of automation to send messages to the target audience at the right time.
Customer Care
Correct customer assistance should not resemble a sales presentation. Consistency and comfort should always be prioritized in customer service interactions. Keep in mind that dealing with client complaints is a huge part of doing business. Your automated systems and channels should provide easy-to-use help options. System integration issues with your Omnichannel strategy are just as dire. As a part of your customer service solutions, add live chat alternatives to your eCommerce websites and check that there is enough information available online. Some of the crucial pointers to improve customer service operations include:
Become more responsive on social media.
Help with live chat.
Automated emails.
Focus On Customer Security
Customers place high importance on the security of their data and payments, especially when that data is shared across large omnichannel networks. Every touchpoint is vulnerable to a diverse set of threats since there are many pathways, which means many weak spots. At every stage of a transaction, the risk of security breaches can be reduced by using a single platform through which all channels pass. Innovative security capabilities in ERP software allow it to evaluate consumer and business data as well as track every channel in real-time for unusual activity or other risks.
Seamless Payment
Issues with payments usually arise in the area of digital marketing. Use the appropriate payment gateways to prevent upsetting your customers. This takes into account the interval between the customer’s online order and actual store pickup.
Equal Focus on Both Digital and Non-digital Channels
Numerous businesses consider TV, radio, mail, and other analogue channels to be outdated mediums, but they might want to give them another look. This is because millennials say they are more interested in printed catalogues than customers have been for decades. A decent return may be achieved with well-target catalogue marketing. A great technique to reach a variety of demographics in omnichannel marketing is by publishing digital and print copies of a catalogue.
Determine the Strengths and Weaknesses of Each Channel
Another important strategy for implementing omnichannel marketing is to determine the strengths and weaknesses of each channel being used. Consider how advertising your products on social media can help customers buy more quickly over the phone or during a convenient conversation than they could do through limited-featured platforms like apps. Connect with your leads using a simple and pragmatic network channel, which has a good effect on your customer service strategy and eventually helps you turn leads into customers.
Invest in the Right Technology and Focus On Mobile-Friendly Users
The technological infrastructure that is currently in place frequently lacks the capabilities necessary for an efficient omnichannel approach. To ensure that decision-makers, chain managers and workers, retail staff, and customers are all working with the same information, businesses must be able to organise and monitor data from every channel. Make sure you can also analyse data acquired from various channels and create precise forecasts and what-if scenarios. Thus, another important strategy is to focus on mobile services, as today’s generation is highly dependent on their smartphones.
Establish Trust
In any industry, building a customer’s trust is essential. If they don’t believe in your company or your goods, everything will suffer. When it comes to digital marketing, consistency is crucial. It’s about improving user experience to the point that people can relate to and trust a brand name without thinking about it. Customers will stop trusting you if you cannot provide effective customer service to them.
Brands Implementing Omnichannel Marketing
Popular Brands Implementing Omnichannel Marketing
There are several popular brands that have established a strong brand identity for themselves with the help of omnichannel marketing. Some of the prominent names include:
The way businesses operate has changed. It has been a groundbreaking marketing concept to use the internet to advertise businesses and goods. It’s crucial to maintain face-to-face and digital interactions, as well as a cohesive brand identity and user experience. The goal of omnichannel marketing is to achieve just that. A transition from a channel-centric strategy to a framework focused on the consumer is necessary to develop an omnichannel strategy. We hope that the ideas we’ve covered in this post about Omnichannel marketing will be helpful to you as you promote your business.
FAQs
What is an omnichannel marketing strategy?
Omnichannel marketing strategy simply refers to the use of a combination of various channels (physical and digital) for customer interaction in order to create a strong brand presence.
Is Starbucks an omni channel?
Starbucks is one of the greatest examples of brands that have nailed the game of omnichannel marketing through its Rewards App.
Why do consumers want omnichannel?
Consumers prefer omnichannel because it helps them connect their in-store experiences with the digital market. For example- some people still do not trust online shopping so they prefer buying stuff from the store which they saw online.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Hero Moto Corp.
Imagine walking for more than 100km? Imagine you have to reach a place immediately but don’t have a transportation system? Well, thanks to the automotive industries for coming up with motor vehicles. Automotive industries started in the 1860s with many manufacturers beginning manufacturing horseless carriages.
Most of the automotive industries began rising in Europe, and Asian parts, are also contributing to a large extent to the development of this industry.
This Indian multinational motor vehicle manufacturer, Hero MotoCorp Limited is one of the largest two-wheeler manufacturers in the world. Popularly known as Hero Honda changed its name to Hero MotoCorp in 2010. This automotive industry is 38 years old and has its headquarters in New Delhi.
Learn all about Hero MotoCorp’s startup story and its growth, founders and team, business model, revenue model, challenges faced, and future plans.
Hero MotoCorp engages in the manufacturing of motorcycles and scooters. Basically, the company is more into two-wheeler manufacturing, which makes them the world’s largest two-wheeler manufacturer as well as in India.
It boasts of providing its customers with varieties of two-wheelers that are not only comfortable but are aesthetically appealing. The company has eight production sites, including six in India (Dharuhera, Chittoor, Gurugram, Haridwar, and Gujarat) and one each in Colombia and Bangladesh.
As the biggest and greatest bike manufacturer in India and the “World No. 1” two-wheeler firm in terms of unit volume sales in a calendar year, the company earned the most coveted recognition in 2001 and continues to remain till now.
Hero MotoCorp – Founder and Team
The Hero Group, the parent organisation of Hero MotoCorp is founded by Brijmohan Lall Munjal.
Brijmohan Lall Munjal
Brijmohan Lall Munjal, Founder of Hero
Brijmohan was born in Kamalia in 1923, in a district of present-day Punjab, Pakistan. After moving to Amritsar, Brijmohan started selling bicycle parts with his three brothers. After a few years, he transferred to Ludhiana, where he started manufacturing bicycle parts under Hero Cycles Limited.
Quickly, he got the license for manufacturing bicycles from the Government of India with a financial capital of Rs 6 lakhs. He is a recipient of the Padma Bhusan Award by the Government of India in 2005.
He has also received the Lifetime Contribution Award by the All India Management Association in 2011, and the Forbes India Leadership Award for Lifetime Achievement in 2014.
Brijmohan was 92 when he died due to a brief illness on 1 November 2015. He was married to Santosh and has four sons and one daughter.
Brijmohan’s popular quote is, “DON’T DREAM IF YOU CAN’T FULFILL YOUR DREAMS”
Dr. Pawan Munjal
Pawan Munjal, Chairman and CEO of Hero MotoCorp
Dr. Pawan Munjal is currently the Chairman and CEO of Hero MotoCorp. He is one of the most qualified, and corporate leaders who have left his marks on socio-economic growth and technological innovation.
Due to his expertise in the field of leadership quality, he made the company achieve the coveted title of World No. 1 two-wheeler company in 2001 and has successfully retained this position to date for almost 20 consecutive years.
Dr. Munjal holds executive roles in important Indian industry organisations, including the Confederation of Indian Industry (CII) and Society of Indian Automobile Manufacturers, in addition to serving on the boards of other corporations (SIAM).
Besides, he also serves on the Board of members in many other companies namely, Munjal Acme Packaging Systems Private Limited, Pan Mining Private Limited, Indian School of Business, Hero Future Energies Global Limited, Rockman Industries Limited, and Bahadur Chand Investments Private Limited.
Hero MotoCorp – Startup Story
Hero MotoCorp’s history may be traced back to the idea of an independent, mobile India propelled by its two-wheelers.
Initially, it began its operations as a joint venture between Hero Cycles of India and Honda of Japan, which gave birth to the company under the name Hero Honda.
As mentioned, Brijomohan started manufacturing bicycle parts after getting the license from the Government. Soon after, the company got the status of ‘Large Scale Unit’ by making an annual production capacity of 7,500 cycles at that time. The company had grown to be the biggest bicycle manufacturer in India. In 1986, Hero Cycles was listed as the biggest bicycle manufacturer worldwide in the Guinness Book of Records.
After the success of Hero Cycles, Brijmohan decided to establish a two-wheeler company called Hero Majestic Company. Right after the establishment, the company started manufacturing Majestic scooters and mopeds.
Brijmohan entered into a contract with Honda, the largest automaker in Japan, in 1984. This was the beginning of a great partnership as the company set up a factory in Dharuhera, Haryana, alongside Honda. As a result of this, the first Hero Honda motorcycle, ‘CD 100’, hit the market on April 13, 1985.
By 2002, 16,000 motorcycles were produced on a daily affair and about 8.6 million Hero Honda motorcycles had been sold. This is how the company grew by reaching the hearts of millions of people.
Fate took its turn when Hero Group decided to split its ways from the Honda of Japan. The Munjal brothers decided to rename the company Hero MotoCorp in 2011. Even after the renaming, it was reported that the Hero Group would pay out royalties to Honda Company so that it can keep using its name Hero Honda till 2013.
The split was planned in a phased manner. The decision was planned in a way that – Honda’s 26% ownership investment in the JV Hero Honda would be acquired by The Hero Group.
As per reports, in locations of Nepal, Bangladesh, and Sri Lanka, Hero Group was not entitled to export under the joint venture; the termination would allow Hero Group to resume exporting. The Hero Group has always gotten its technology from its Japanese partner Honda.
After going through a lot of rift and differences between the two companies, Hero Group is now free and acts as an independent company. The company is also able to export to other countries like Latin America, Africa, and West Asia.
Hero MotoCorp – Mission and Vision
Hero MotoCorp’s goal now is to become the top two-wheeler firm worldwide by setting standards for design, functionality, and technology.
The company is very clear about its vision and that is “Be the Future of Mobility”.
The mission of Hero MotoCorp is to “create, collaborate, and inspire”. The company is quite firm about its mission to create and set benchmarks in the industry and inspire its co-workers to push the company to a global level.
Hero MotoCorp – Name, Tagline, and Logo
Previously, Hero MotoCorp was named Hero Honda Motors Limited after exiting the joint venture with Honda of Japan in 2011.
Hero Logo
The logo of the newly formed brand was designed by the British firm Wolff Olins.
Hero MotoCorp’s new tagline says, ‘Hum Main Hai Hero’ which means ‘There is a Hero in Every one of us’.
Hero MotoCorp – Business Model
Hero MotoCorp is a public company with a market capitalisation of ₹59,600 crores (US$7.8 billion) as of 2021.
Hero MotoCorp has a business-to-consumer (B2C) model as they manufacture motorcycles and scooters along with their parts.
The company is mostly involved in the design and development of technologically cutting-edge motorbikes and scooters for users worldwide.
Hero MotoCorp leads the path in the manufacturing world: and aims to be ‘A Global Brand’
It boasts of having over 100 million customers worldwide and persists to be on the top by bringing socio-economic progress and empowerment through its range of products and services.
Hero MotoCorp Key Products are:
Motorcycles
Xtreme 200S
Xtreme 160R
Xpulse 200T
Xpulse 2004V (Latest Edition)
Xpulse 200
Splendor+ Xtec
Splendor Ismart
Splendor+ Black and Accent
Splendor+
Passion Xtec
Passion Pro
Super Splendor
Hf Deluxe
Hf 100
Glamour
New Glamour
Glamour Xtec
Scooters
Pleasure+ Xtec
Maestro Edge 125
Maestro Edge 110
Destini 125 Xtec
Destini 125
Hero MororCorp has launched ‘Vida’-, which is an in-house electric vehicle brand of the company. In March 2022, the brand unveiled the electric vehicle to focus more on ‘Green’ sustainability.
The Chairman and CEO of Hero MotoCorp, Dr. Pawan Munjal says,
“Vida means life, and the brand’s sole purpose is to create a positive impact on the world and take us forward in meaningful ways. We believe the name is perfect for what we are building for our children and the next generation.”
The brand has also come up with an official Hero merchandise business.
Hero MotoCorp also indulges in providing service and maintenance for their customers. The company takes good care of its customers’ two-wheeler repair and maintenance through its extensive network of more than 6000 dedicated dealers and service outlets located across the country. The company offers continuous work to uphold its mandate of providing the best level of customer satisfaction.
The company also has workshops that have well-defined standards for servicing two-wheelers, a fully functional infrastructure, a staff of highly skilled service technicians, and quality precision equipment and pneumatic tools.
Hero MotoCorp provides free services for all its two-wheelers. However, for customers to use these free services they have to use them within the allotted time frame or mileage range, whichever is shorter, starting from the date of purchase.
Once the customers have used the free services, they have to continue using premium services following the suggested service schedule after the expiration of the free services or the period during which they were offered.
The foundation of Hero MotoCorp’s manufacturing facilities is sustainable development, as the company is committed to supporting the highest environmental standards.
The company has eight globally benchmarked manufacturing facilities, including six in India and one each in Colombia and Bangladesh.
Hero MotoCorp – Revenue Model
Hero MotoCorp saw a gain of profit of Rs 885 crore in the January-March quarter during the 2020-21 fiscal period in their annual report. However, its revenue from operations saw a decline to Rs 7,497 crore from Rs 8,690 crore in the fourth quarter of the fiscal year 2021. There was also a decline in their net income, which is now ₹2,982 crore (US$390 million).
Hero MotoCorp – Investments and Partnerships
Hero MotoCorp has the majority of investments in synergies. The company has partnered with International and national brands like:
Iconic American motorcycle brand Harley-Davidson
World’s largest battery-swapping network and EV maker Gogoro Inc.
Bharat Petroleum Corporation Limited (BPCL), India’s leading fuel distribution network.
At a Venture Funding round, Hero Motorcorp recently invested Rs 550 crore in Ather Energy on September 4, 2023.
Hero MotoCorp – Acquisitions
Hero MotoCorp has acquired a UK-based transmission technology firm called Hewland Engineering. The details of the sum are still undisclosed.
With this acquisition, Dr. Pawan Munjal says, “This investment represents a significant strategic inflection point for us in the transmission product segment. By combining Hewland’s comprehensive design and analysis capabilities with our ability to support high-volume manufacturing we are strongly positioned to offer full-stream transmission solutions to global OEMs and Tier One suppliers.”
Hero MotoCorp – Challenges Faced
Although Hero MotoCorp is a leading manufacturer of two-wheelers, it still poses tough competition from other competitors both in international and national markets.
One of the biggest challenges for the company is to come up with new products with unique designs. As per a report, Hero’s weakness lies in its lack of innovation that is, most of its products are designed similarly with no knack for new features or designs.
Hero MotoCorp – Competitors
The automotive industry, especially, the two-wheeler segment is one of the most expanding industries today.
The following are the top competitors of Hero MotoCorp are:
Baja Auto
TVS Motor Company
Honda motorcycles and scooters in India
Atul Auto
Hero MotoCorp – Awards and Achievements
Hero MotoCorp has received various awards and recognition.
Awards won by the company in the last few years are:
2020
Motorcycle of the year- Exhibit Auto Tech Awards 2020
Tourer Bike of the Year(up to 250cc) – Flywheel Auto Awards 2020
Business Leader of the Year Awards
Scooter of the year – Bike India
Bike of the Year up to 200 cc – Bike India
2018
Best launch – Two-wheeler at the CNB Auto Expo Awards for Excellence 2018
Highest Ranked Executive Motorcycle In Initial Quality – Hero Super Splendor
Bikesport award of the year – Times Auto Awards
2017
Hero Glamour – Commuter Motorcycle Of The Year – NDTV Car and Bike awards 2017
Indian MNC of the Year by All India Management Association (AIMA)
Manufacturer of the year – NDTV Car and Bike awards 2017
Hero MotoCorp – Advertisements and Social Media Campaigns
In October 2021, Hero MotoCorp launched an ad with a song, “Khushiyon Ko Do Raftaar”. The aim was to spread the message that the customers love to take that extra mile to make someone happy and that Hero MotoCorp is proud to be its customer’s trusted partner.
Hero MotoCorp – Future Plans
Even after having launched new products and taking the green initiative seriously, Hero MotoCorp is doing quite well in the industry by maintaining its status of World No.1.
Here’s what the CEO of Hero MotoCorp says, “This year will see Hero MotoCorp claim its position in the exciting clean mobility space in a bold avatar. Hero MotoCorp will transform its leadership in the internal combustion engine (ICE) market into the electric vehicle space globally.”
The company has also shared that in the FY 2022-23, the company’s recent launch of ‘Vida’ its first in-house Electric Vehicle (EV) will break the market shortly.
The company will develop and build a line-up of EV products, to offer mobility solutions to a diverse customer base around the globe. Hero MotoCorp will continue to invest in capability building, both in-house and through partnerships with global players, to capitalise on their unique strengths, and pave the way for expeditious adoption of sustainable mobility solutions over the coming years.
The company also plans to develop mobility solutions for a broad consumer base around the world. They wish to capitalise on their specific strengths and open the door for a swift uptake of sustainable mobility solutions over the coming years and will continue to engage in capability creation, both internally and through collaborations with global actors.
FAQs
Who is the founder of Hero MotoCorp
Brijmohan Lall Munjal founded Hero MotoCorp in 1984.
What is the revenue of Hero MotoCorp?
The revenue of Hero MotoCorp is US$4.2 billion as of 2021.
What is the business model of Hero MotoCorp?
Hero MotoCorp is a two-wheeler vehicle manufacturing company that manufactures two-wheelers like bikes and scooters.
The role of advisory boards is crucial for any company. For startups, it is of much greater significance since you might want to get the best advice in leading your business towards success. It consists of a team of individuals who carry relevant industry experience and knowledge in helping companies in making the right decision.
This group of individuals offers advice and guidance to the managers or directly to the owner so they are aware of the risks and rewards before signing up for a business venture. It can be challenging for young entrepreneurs to look after all the aspects of the business and come up with the best idea.
A qualified and experienced advisory team will share their knowledge and innovative ideas and provide valuable feedback and a new perspective on the matters of the business.
How did Pebble Watch Founder Eric Migicovsky compensate his startup advisors with equity?
Importance of Advisory Boards for Startups
Advisory boards are essential for startups not only to provide guidance but also to help a company in defining its ultimate goals and objectives. They have years of industry experience in providing the necessary strategies to achieve their goals. They have enough knowledge to provide you with the best input related to crucial business decisions.
The role of advisory boards is to look upon the matters of the business and ensure that everything is on the right track. These individuals will assist you in entering the market with your new products and services and gradually work towards building a brand name for your company. They provide the startups with critical input and insights that help them shape their product, enhance their model and build a stronger company.
Furthermore, an advisory board is essential for every startup, but it’s your responsibility to ensure that this board is diverse and composed of professionals who hold relevant industry experience. It’s not important to make a group of the best accountant, attorneys, or marketing experts, but any individual who has enough experience, has a deep interest in your company and can provide insightful advice is a good match for your team.
Here are some factors that will help you to understand the importance of advisory boards and how they can help startups to grow and succeed:
Size of the Global Consulting Market from 2015 to 2020
Brings Industry Experience and Knowledge
An advisory board consist of a group of professional individuals who have been working in the industry for years, gathering experience and knowledge that can help a startup to grow and make its way in the market. These individuals are experts in their field, and when you bring them together, you will be able to make much better decisions and achieve set targets much easier.
In other words, the board is composed of industry experts who bring a wealth of experience that can be leveraged to inform the venture’s direction in establishing unique business goals and serving the local community more effectively.
Provides Insight Into Complex Business Affairs
Running a business is not easy. It is essential to make the right judgement at the right time considering all the factors beforehand. For an entrepreneur, it’s not possible to carry experience and knowledge in all fields. This is where advisory boards can be helpful for startups, as they can provide insights into all kinds of complex business affairs and assist them with strategic planning.
These groups of individuals who have expertise in different fields can help fill the voids found within a startup by providing insight into areas that are commonly misunderstood by less experienced entrepreneurs. They can assist in crucial decision-making of the business like financial planning, handling legal affairs, providing innovative ideas, strategies for marketing, etc.
Help in Establishing a Business Model
An advisory board also plays an important role in setting up the business model of a company. Many entrepreneurs often face this difficulty in their business. Establishing an appropriate business model is necessary as it determines the functioning of a company. Also, sales and revenue generation in a company are based on the business model.
A qualified team of advisors can assist you with establishing a successful business model which will allow the company to generate more revenue and motivate the organization to work together as a team. A suitable business model will also ensure that your products and services reach out to your target audience. Overall, it will increase the efficiency of your startup.
A startup has to face a lot of challenges but creating a brand name in the market is amongst the most challenging jobs that must be done as early as possible. This will increase sales of your product and services and will ensure that you are reaching out to your target audience.
A major role is played by the advisory board by providing valuable feedback and suggestions to make things work out in favour of your company. This also increases your credibility and attracts new customers and clients to buy your products and services.
In addition to that, you can easily get help from investors who can provide you with funds to grow and develop your startup. The advisory board acts as a significant link between the entrepreneur and their customers, investors or clients.
How to Build a Successful Advisory Board for Startups?
Building a strong Advisory board is not just a matter of asking the right people. You need professionally qualified individuals who can fill the void in your existing team. However, entrepreneurs need to understand the long-term benefits the company can achieve with their guidance and valuable insights.
Working with an advisory board can be pretty expensive. After all, you are working with individuals with years of industry experience and knowledge. But an entrepreneur also needs to realize the overall impact of an advisory board on their startup. If your business is unable to perform well, then building a successful advisory team is the best idea to save your startup from drowning.
Building an advisory board can be complicated. There are plenty of factors to consider while approaching a potential advisor. However, it is important to consider the return on investment and risk and rewards before approaching any advisor for their valuable source of network and knowledge. Here is a quick guide that will assist you in building an appropriate advisory board:
Know Your Startup’s Needs
Understanding your startup’s needs in order to build a successful advisory team is essential. It is the first step toward building an advisory board that fits with your organization’s culture, values and mission. You might be thinking of including members from different backgrounds such as education, financial expertise or industry experience.
So for that, you must be aware of your needs and end goals that will allow them to provide assistance where you want to add value to your business operations and valuable insights on crucial business matters. The decision to appoint a team of experts who can potentially bring growth and success solely depends on the entrepreneur.
Outline the Job Description
What to Include in a Job Description?
It is important to outline a job description before looking for members of an advisory board. This will help you look for individuals who are well suited for your startup and can guide you in carrying out business activities and assisting with strategic decisions and planning over the course of time.
Depending on the needs of your business, you must outline the job description that states the educational and skills requirements, the startup’s objectives and the roles and responsibilities so that interested applicants are aware of the tasks and expectations of your company. Ensure that each profile needs to be distinct and meets a demanding standard of qualifications.
If you are looking for an advisor who can aid you with the financial affairs of the business, then ensure that it is properly indicated in the job description.
Begin the Recruitment Process
Once you have outlined the job description, the next thing to set up an advisory board for your startup is to start recruiting potential applicants. A quick interview round will help you to understand if they are the right fit based on your job description or not. If you are looking for financial advisors, then keep your interview session about their expertise and knowledge in that specific field.
After a few interview sessions with all the applicants, you will be able to pick a suitable candidate who can be the right fit for your startup. Conducting the recruitment process along with other managerial heads will help you to recruit a better candidate for the role of advisor. Also, ensure that they have experience in dealing with the challenges faced by startups and can provide valuable assistance in dealing with them.
Make a Contract for Finalization
After the recruitment process is complete and if the selected candidates are willing to work with your company then it’s time to sign the contract with mutual agreement and fulfil the legal obligations, so they can join an advisory board in your company.
Ensure that all the required paperwork is complete and they are well aware of the contents of the contract. The contract must define payment terms, a list of set expectations and time commitment requirements. You can also add other important clauses in the agreement depending on the type and needs of your startup.
Assign the Required Objectives and Key Performance Indicators
The final step in building an advisory board is to discuss the objectives and end goals of your business and assign key performance indicators so that they can work accordingly.
Setting performance indicators will allow the company to reach the set milestone and will make sure their performance is as per expectations and they can bring value to the business. Ensure they are working towards the growth and development of the business by providing valuable feedback on complex business matters.
Conclusion
Advisory Board can be a great resource for startups. It enables you to improve the quality and speed of innovation, receive valuable feedback from key industry professionals, and produce ideas that can be implemented with minimal risk.
Its aim is to provide strategic insight that includes providing advice on marketing strategies, hiring for key positions, or helping the company determine its financial direction. It’s important for entrepreneurs who are looking forward to starting or growing their business to know the importance of a successful advisory board and how to build one.
FAQs
What is a business advisory board?
A business advisory board refers to a group of professionals who are experts in their required fields and offer strategic advice to help businesses make executive decisions and also help them grow to their highest potential.
What is the role of the Advisory Board in a startup?
An advisory board plays a very important role in a startup as it provides strategic insights, ideas and guidance as per the startup’s requirements and market trends.
How do you compensate advisors?
Advisors in a startup are usually compensated with salary, equity or both. In the case of equity shares, advisors may receive 0.25% to 1% shares. However, this can vary depending upon the capacity of a startup and the nature of advice.
The world I see around and in fact, the world, which we all see around is mostly glued to the screens. At a point in time, you may develop some sense that this world is covered with more screens than living organisms. There is something that is too addicting about these screens. In fact, we all know what that addicting element is! Most probably, it is social media.
We live in a society, where we don’t really live in a society, in fact, we live on social media, jumping from one medium to the other. We might be posting some fun photos on Instagram for a second, choosing captions for the posts on Facebook, and then typing out feels on Twitter. Covered with an immense responsibility of maintaining every social media with a good social life has gotten all over us.
In a world where everyone is on social media, it is really important this social media happens to be privacy-focused and acts as a good and moral form of media. It should be more democratic and should have all the fundamentals of democracy like the right to freedom of speech. Furthermore, it should also be open for all features with strict guidelines about hate and misconduct which we all witness online. The past five years or maybe ten years have been consumed in this discussion of maintaining social media.
There are influential people involved in this decision and the social mediums we use every day are really getting better every day. This article is about one such social media, and that is Twitter. Twitter is one of the most famous platforms in the world. We will cover how it is changing, the recent news about Elon Musk’s decision of buying out all of Twitter’s stakes, the probability of him acquiring the company as a whole, and how the termination of the acquisition deal has dragged the two parties to the court. There were a lot of updates involving Twitter and the decision of Elon Musk’s Twitter acquisition. So, let us see the events one frame at a time and then ascertain how the company is doing at present and where the company is headed. First, let us see who the protagonist of this news is, and why he is such a sensation!
You must be living under a rock if you don’t know who Elon Musk is! He is probably the most famous and most sensational entrepreneur and businessman ever known to humanity (at least in the twenty-first century). He is smart, he has all the skills to create something in the field of science and technology, and if you look at his Twitter account, he is hilarious.
He is the founder of SpaceX(a space company that builds and launches rockets), The Boring Company (a tunnel-making company for better and futuristic transportation), and the all-time great Tesla(a smart car manufacturer). This man has literally made everything that most technologists in the world have mentioned to be impossible in the near future.
Maintaining such big companies and a lot more other companies, Elon Musk comes on the list of richest people in the world, and with a net worth of $220+ bn in June 2022, he is the richest among all of them.
Besides, most investors and people in the world love him and trust him. This is Elon Musk, and of course, not to mention that with great powers, comes great responsibilities. He is such an influential person that once he skyrocketed the price of Bitcoin, just by a tweet. He is the mind behind the joke turned crypto, Dogecoin, and behind the “to the moon” phrased meme all over the internet.
The best way to find out about Elon is probably not his Wikipedia, it is his Twitter account. He is the most transparent and his usual self on Twitter, I’m joking. His account is filled with memes, jokes, more burning jokes, facts, and sometimes random wisdom. Not to mention, Twitter seems to be his favourite social media among all the social media in the world, perhaps that is why Musk initially decided to buy it, but he eventually backed out from the same.
The founder of Tesla spends a disproportionate amount of time on this medium. This calls for some recent news, the news about buying Twitter. However, before disclosing the news of Musk not buying out Twitter and getting sued instead, you need to understand the back story about why he decided to do the same, and how he did go near it but closed it unfinished.
Reaction to Elon Musk Acquiring a 9.13% Stake in Twitter
The news that came off on 4th April 2022, shook Twitter. Not just Twitter but every shareholder of the company. Elon Musk bought 9.13% of the stakes of the company. The result of this action was that it made him the biggest shareholder of Twitter among others. This move of buying the biggest stake in the company gave him more power than any other shareholder in the company.
As the news broke out of Elon taking a 9.13% share of the company in his ownership, there were many repercussions. As a man who is a very influential personality in the world, this move was unexpected and uncertain at the same time. In fact, there are multiple instances where Elon proved that he is not predictable at all. He does whatever he feels like doing and with the same stance, he speaks whatever on Twitter he wants to.
As Elon bought 9.13% of the social media giant, there were reactions all over. It is to be noted that Elon’s share in the company then stood at about four times that of Dorsey. Jack Dorsey was the co-founder and was one of the key people responsible for the launch of the company, he eventually stepped down from the CEO position followed by his resignation from the Twitter Board of Directors.Elon surpassed Jack with this investment and had more ownership than him.
Another event that occurred after the stakeholding was the jump in the share price of the company. It is to be noted here that the social media giant is a listed company, as it is an enormous firm that requires a listing of its own. As a person who can change the price of bitcoin with just a tweet, we can only guess that buying 9.13% shares in a company as large as Twitter, would imply similar reactions for sure. The shares of Twitter jumped 27% after the news broke out on the 4th of April, 2022. This has also been noted as the single biggest jump for the company’s shares till then.
Elon Musk didn’t write to SEC when his stakes in Twitter went beyond 5%, which was a violation of US security laws. Therefore, when he disclosed his acquisition of over 9% of Twitter shares via the 13G filing of SEC on April 4, 2022, the shares of the social media platform saw the largest intraday surge in their prices since its 2013 IPO.
With a 9.7% stake in Twitter, Elon was bestowed with powers that can change and alter the decisions of the whole company and thus, the market image of the social media giant. In fact, in some other news, it was also mentioned that Elon was all set to join the board of the company, which would have helped him get the powers of dictating the company. This is one of the prominent privileges that the topmost shareholder of a company get. However, Elon initially delayed the same until it was effective from April 9th.
All of the above repercussions or reactions were just one part of the story and they were the most noticeable changes in the company and the outside. However, there were more reactions and repercussions that were still not revealed to the world then.
Before Elon starts his own sways as the owner of the company once the pending Twitter deal is approved, we must see what kind of changes we can expect from him. For this information, we will have to look at his Twitter account. His Twitter account has always been full of useful nuggets of information that can guide us in the direction that this person will be taking on Twitter. Let us have a look at his most recent tweets among the news of him buying the most shares of Twitter.
Elon Musk Replaced as the largest shareholder of Twitter
The story so far has been easy to follow but now there occurred a twist that turned everything. This was another update to the story, the ‘Elon and the hostile takeover of Twitter’ story. Now, before we tell you the story, let us inform you that there are five major shareholders in Twitter. Those five names, according to their shareholdings are Elon Musk, The Vanguard Group, Morgan Stanley, BlackRock and State Street. All these five Investors/Firms make up for all the ownership of Twitter. Collectively, these top five Twitter shareholders own more than 37% of Twitter.
Now that Elon was trying to buy the whole company with some really rash conditions like reconsidering his already biggest shareholding in the company, other investors thought to come up on stage. The Vanguard Group, which is the biggest shareholder, next to Elon decided to come into the picture. Vanguard increased its share in Twitter, which led Elon to bump off his perch. The Vanguard Group, which is an asset management firm, grew its stakes in the social media giant, Twitter to 10.3% of the company. The group then owned 82.4 million shares of Twitter, which made them the highest shareholder in the company, offsetting Elon’s shareholding of 9.13% in the company.
The Vanguard Group overtook Elon Musk as the largest shareholder of Twitter. The move came after Elon tried to take the company into his own hands, rather forcefully. Experts started referring to this as a hostile takeover of Twitter. Soon after Elon’s action, the “Twitter Takeover” hashtag also started to go viral with thousands of Twitter users replying to it and commenting on their views. Vanguard’s move of buying and owning the largest stake in the company came to offset what Elon is up to. According to Elon, who seemed to be a hardcore advocate of free speech, Twitter is not doing enough to promote free speech. Musk wanted to make the company a private company, from a publicly listed company and thought that he can unlock its full potential. One thing is sure, Twitter headquarters had been on fire at that moment.
Elon Musk Tweet’s Analysis
Most celebrities do not like controversies. Let me rephrase it, most celebrities try and avoid any sort of controversies whatsoever in the world. Most people in the world love controversies and stories with great spice in them. As opposed to the popular opinion of being controversial, most celebrities in the world try to avoid arguable moments, at least in public.
Elon belongs to that category of influencers or celebrities who absolutely love controversies. Musk is someone who is super transparent and speaks his mind, even in public. He does not really care about what the repercussions will be and how people will react to his ideas. He just does.
His Twitter account reflects what we just mentioned in the last paragraph. He is his honest self on this social media and just tweets without a second thought. That is one reason for the immense following that he has gotten on Twitter.
Soon after the news broke of Elon Musk buying a 9.13% stake in Twitter, he was, as usual, active on his Twitter account. It was the 4th of April when this happened and he has tweeted a lot of things since then. Let us see what he has been up to, by decoding his tweets and polls, and pictures. Here it goes:
One of the first things that he posted on Twitter after becoming the major stakeholder in the company, was a meme. He literally posted a meme which is quite a usual post on his Twitter account and fans reacted the same.
Fans blew up the post by hitting the retweet button a million times. The meme showcased Elon Musk smoking weed. Yes, it gets as weird as we speak more about it. Let us link it up here, the tweeted photograph so that you can relate to what we are saying.
Elon Musk tweet after becoming the major shareholder of Twitter
The photograph is of Elon in a past podcast with the podcaster Joe Rogan. Now it is here to be mentioned that Joe Rogan is a popular podcaster and he has an audience that is huge. As mentioned earlier, Elon is his usual self on Twitter, as the world likes to believe and as seen everywhere on the internet. This event was controversial, and it even affected Tesla’s share.
Going back to the tweet, he shared this image of him smoking weed. The image also entailed a caption on the top of the image that read “Twitter’s next board meeting is gonna be lit”. The post is, NOT GONNA LIE is hilarious. It shows that this person is super chill and raises questions on the future of Twitter as a social media which is becoming more and more transparent.
The next tweet of Elon Musk, which we are going to mention here, was also a hit and had rave responses from people all over the world. This time, Elon commented on the famous issue that Twitter has had for a long time now. The edit button. His tweet was a poll in which he asked his 81 million followers “Do you want an edit button ?” He also cleverly added two typos in his tweet poll, misspelling ‘Yes’ as ‘yse’ and ‘No’ to ‘on’, which was not a random mistake but a thoughtful mistake. This marks the old debate of Twitter having an edit post button like other social mediums.
Elon Musk Edit Button Tweet
Parag Agrawal retweeted Elon’s tweet poll and wrote a caption that he wants participants of the poll to choose carefully as this will have implications in the future. Twitter officially mentioned later that they are working on an edit button. Elon’s tweets were famous back then and now, he is the biggest shareholder in the company, which means that he has to decide the powers in his hands.
The consequences of this poll will be important. Please vote carefully. https://t.co/UDJIvznALB
The next tweet that we want to talk about is another recent tweet after he became the largest stakeholder in the company. This was actually a retweet with a quote that he wrote. He retweeted some tweets that showcased ‘the topmost followed accounts on Twitter.
The original tweet involved mentions of celebrities Obama, Justin Bieber, Taylor Swift, and other celebrities on Twitter. Elon retweeted it by saying, “most of these top accounts tweet rarely and post very little content”. He also added a question “is Twitter dying”. It mentioned the low popularity of Twitter and super users using this social medium to post less content, as compared with other social mediums like Instagram. This raises questions about the popularity of the social media giant.
Most of these “top” accounts tweet rarely and post very little content.
He also added some more replies to his original quoted tweet by mentioning some of the top accounts. He said that top accounts like that of Justin Bieber and Taylor Swift did very little or no posts this last year. This sprung many reactions out from everyone who interacted with the tweet. Thus, taking a toll on Twitter and its largest accounts in terms of follower counts.
In another tweet, Elon Musk wrote, ”Convert Twitter SF HQ to a homeless shelter since no one shows up anyway,”. The tweet was a poll with many participants saying yes to the idea. One of the participants in the poll was none other than the richest person on earth, Jeff Bezos. He agreed to that tweet replying that he and his team at Amazon did a similar thing. Jeff and his team did turn one portion of their corporate office at someplace into a homeless shelter.
The tweet about converting Twitter headquarters into a homeless shelter came after Elon observed that the employees weren’t coming to the office. So, this poll was an attempt to take a toll on the employees there. However, we feel that folks at Twitter are doing a pretty solid job at their work.
After analysing a lot of tweets from the CEO of Tesla, it’s time to look at the platform and the most famous issue with it. The edit button has been the centre of outrage on this social media for a long time now. Here we will see what it is and how it will be in the future.
Twitter Edit Button Foray
Twitter is a social media that revolves mostly around typed texts. Posts are mostly typed texts that are also limited to some, One hundred and forty characters. This character limit was much shorter in the past and was increased following the huge demand from Twitter users. This is an example where Twitter shows that it takes care of its user demands.
However, there is one more thing that pinches Twitter users. That thing is the absence of an edit button. Twitter has had no edit button since its inception and people are super pissed off from this thing. They have been asking for it for a long time now and Elon entering the scene has been a ray of hope for these people.
In the past, Twitter said that having no edit button inspires people to type responsibly and sensibly. Twitter has also mentioned in a quirky way that “Your typos make it original”. Which is a good escape from the situation. Even before this edit feature was a thing, the issue was fewer characters to tweet. Twitter used to dismiss it by saying that fewer characters for tweeting inspire creativity.
Turns out that the edit button issue is a big issue for all Twitter users and this has to be made a feature on the website and the app. As Elon stepped into the scene with the biggest shareholding in the company, there was hope in the eyes of Twitter users.
In a very recent tweet, Twitter mentioned that “We are working on an edit button”. This tweet, however, was on the first of April, which is known as April fools’ day. If this is a prank or it is a real thing, we can’t say it in sure terms. Only time will tell if Twitter will really be adding an edit button or if it was a massive prank. It is not funny however anymore.
This was big news for the world, when everyone was expecting Elon to be joining the board at Twitter, this news came out. Let us see what the article that Parag posted said and try to see what happened here. Parag sent a snapshot of the post that he shared with his team on Twitter. The first line of the article read “Elon Musk has decided not to join our board” and then came the explanations.
He said that the Twitter board and Parag himself discussed many things with Elon Musk, that too face-to-face, with no hierarchy in between. The board of directors at Twitter was super excited about Elon joining the board but they want to be sure about the risks involved in the action. The article mentioned that the company expected Elon to act as a real board member, which simply means that he has to work in the best interest of the company and all the shareholders.
With all these general terms and conditions that every company would expect from a board member, the Twitter board offered Elon a seat happily. This was mentioned in the article. Twitter even announced the same on Tuesday on an official notice that Elon will be appointed as a board member. With some little background check.
All the work was nearly done but the next morning, Elon himself said that he will no longer be joining the Twitter board. Parag mentioned that he believes that this decision is for the best and they have always looked out for shareholders’ input. For the time being, Elon Musk is the largest shareholder, and the owner of the company, and will remain that way, and the company will always be open to his input. This means that the Tesla CEO will not become a part of the board of Twitter but will remain the largest shareholder in the company with all the rights of a shareholder.
Parag also mentioned that the future of Twitter is full of distractions and all the people working at the company will have to prioritise goals and achievements.
All these events on Twitter really define Elon as an unpredictable person who just can’t be predicted. Not to mention that this company, Twitter is his favourite social media space and now he is its biggest shareholder. This is expected that Elon will be good to the board and will not create any sort of ruckus that is not needed there. But again, Elon is unpredictable as always, and saying no to the opportunity of staying on the board of directors, will help Twitter stay focussed on what they are trying to build.
As the news broke out, there was an immediate effect that could be seen with naked eyes. Twitter shares fell down, as the stock exchanges are just a reflection of investors’ feelings. It is obvious that investors were hurt by this decision and thus, they started pulling money off their stock and portfolio from Twitter. This was the effect of news and Elon, as mentioned earlier is his usual self and does not really care about controversies. He can just punch a stock with a tweet.
Has Elon Musk Bought Out Twitter?
Yes, you’ve heard it partly right! Elon Musk has not actually bought out Twitter by buying 100% stakes in the firm on April 26, 2022, but Musk is enthusiastic and the deal is pending final approval. The “is enthusiastic” has now turned to “was enthusiastic”. Yes, Elon Musk lacks any more zeal to continue with the Twitter buyout and has reportedly abandoned the idea, as per July 9, 2022 reports. In response to Musk’s decision, Twitter has responded that it will take legal action against the Tesla CEO and will force the deal to go through.
As we mentioned, this article has to be updated to the latest version of the story. In our research, we found another update and we got to know that Elon wanted to buy the whole company. Not that this was not evident from his actions but this was big news indeed.
Elon Musk asked the board to sell the company to him. As a Twitter admirer and then the biggest shareholder in the company, he said that this company has a lot of potentials. A huge potential that was left untapped. He also mentioned that he thought he was the key person that could unlock that potential.
Tesla’s CEO offered the company an offer that seemed too good to be true. He said that he will buy every share for 54.20 dollars each, which will value the company at a whopping $43 billion. As the news broke out that the world’s richest person is trying to buy the social media giant, the stock markets reacted in a positive manner. Twitter shares jumped up 5.3% and stood at 48.2 dollars.
Twitter said that its board would review the proposal and any response would be in the best interests of “all Twitter stockholders.”
It all started on 4th April 2022, when Musk agreed to a deal that would appoint him to the Board of Directors of Twitter on April 4, 2022, while prohibiting him from acquiring more than 14.9% of the company. However, Elon decided to not join the board before his appointment became effective on the 9th of April.
Elon Musk finally offered $44 bn on April 13, 2022, to buy out 100% shares in Twitter at $54.20 per share. This was fueled by his desire to take the company private. Musk reportedly said that Twitter will “neither thrive nor serve [its free speech] societal imperative in its current form”, adding that it “needs to be transformed as a private company.” Though Twitter’s board initially adopted a shareholder rights plan, which aimed at making it more expensive than it was possible for any single investor to own more than 15% of the company without permission from the board of Twitter, it later accepted Musk’s offer on April 25, 2022. However, Elon Musk’s bid worth $44 bn to buy 100% of Twitter is still pending due to some issues related to spam and fake Twitter accounts.
Twitter wanted all its actions to fall exactly in the place that will help the company and the stakeholders grow. The current scene with Elon looked too unpredictable and unstable to think. The offer that he made was really good but what the board was unable to decide was the fitness of Elon for the role of the most important person in the organisation. If Twitter was bought by Elon, the company will have to do whatever he says as he will have all the controlling rights, thought the board. Elon was surely too unpredictable and uncertain to have the handle for the whole company.
“If the deal doesn’t work, given that I don’t have confidence in management nor do I believe I can drive the necessary change in the public market, I would need to reconsider my position as a shareholder,” said Musk.
This was really a big reply as recently Elon made public his stake at 9% and not the 9.13% that was previously mentioned. This again angered investors in the company. Elon had too much power, which had to be controlled otherwise, this man was expected to buy out Twitter in a hostile manner. We use the word hostile here because if the company refused to accept Elon’s offer, it meant that he will not invest in the company. This directly implied that the stocks will crash, inevitably. This was a situation where the company was taken hostage and what will happen next really looked like a war-like situation between Elon and Twitter. Though everyone thought all of that ended in the reconciliation of Twitter and Elon Musk, who planned to complete his 100% acquisition of Twitter by acquiring all of its shares, which were valued at $44 bn on April 26, 2022, it is not yet done.
In the conclusion, Elon Musk hasn’t yet acquired Twitter and has instead walked away from the deal after the social media giant failed to provide the correct information about the fake accounts that are there in it. However, hearing this, Twitter went on fire and the management of Twitter replied that they will sue the world’s richest person. Besides, both the parties mutually agreed on a fine of $1 bn, which will be levied on either of them if one of the parties tries to back out from the deal.
Twitter has, in fact, sued Elon Musk at the Delaware Chancery Court on July 12, 2022, after he moved to end the acquisition undone. The lawsuit reportedly accused Musk of hypocrisy. However, Musk quickly took to Twitter once again and tweeted “Oh the irony lol.” Though Musk didn’t mention anything in his tweet about the deal, it was apparent that it was a response against the lawsuit, considering that Twitter didn’t even give much importance to the acquisition deal back in April 2022. The Twitter deal, which was assigned to Kathaleen McCormick, who looked over as the Chancellor or the Chief Judge of the Court of Chancery, decided to force-complete the acquisition of Twitter by Musk. McCormick already had a reputation of being a “serious, no-nonsense judge,” which was proven even in this case.
What’s next? Yes, the colossal deal has turned in the direction of dramatically being rolled down to a legal showdown ahead, and the Chancery court’s ruling came in favour of Twitter, where Musk should have to complete the deal. Now, the deal can only go through or it might be pushed further to the higher courts. Twitter, in the meanwhile, has announced that it would hold a shareholders’ meeting on September 13, 2022, when it would have them vote on the approval of Elon Musk’s $44 bn Twitter takeover, as of July 27, 2022.
Nevertheless, we can simply guess the future of the Twitter-Musk deal and wait for the next updates!
The Present State of Twitter
Twitter has been a really famous social media. It is simple to use, has great implications and use cases and people just love it. It is a great platform for sharing news and the most famous thing is, sharing opinions in limited words. This was a clever idea that worked really well, to build a platform that will allow users to type out their opinions and put them on a social wall that can be accessed from everywhere.
When we compare this social medium with other famous platforms like Instagram, we will notice that this is completely different. Instagram is solely focused on photos and videos (mostly small). On the other hand, Twitter is a niche website, which can be exactly defined as a microblogging website. It is the words that count here. And of course, even though there are options for photo and video sharing on Twitter, it is heavily verbal and non-central. Instagram is visually appealing, while Twitter works as more of a community place of common ideas and interests.
If we look at Twitter from a business perspective, there is space for that too. Twitter is most commonly used as community management and customer service platform. Most of the companies in the world operate their community services on Twitter and they are really responsive to queries customers ask. This popular social media platform is on the brink of being acquired by Elon Musk, who would then be summed up as the private owner of Twitter. Elon Musk had initially threatened to blow up the Twitter acquisition deal worth $44 bn. In response to the same, a Twitter stakeholder has reportedly mentioned the need for a judge, who would eventually order the microblogging site to turn over internal papers in relation to the spam and fake accounts. The Twitter deal of Elon Musk worth $44 bn was then approved unanimously by the Twitter board, as per reports dated June 21, 2022. However, there were lingering doubts about the actual deal still because Twitter shares lost their price, which dipped far below the price that Musk offered initially. Also, there were significant doubts that Elon Musk indicated about the debts and the spam and fake Twitter accounts, which Twitter is claiming to be less than 5% of the monetisable daily active users. All of these didn’t satisfy Musk, who decided to terminate the deal in the first week of July 2022, citing multiple contract breaches. Now, Twitter might also get acquired ahead by Musk because the Court of Chancery has already asked to complete the deal by force.
The Expected Future of Twitter
The series of events has already passed its climax but still hasn’t concluded with Elon Musk’s acquisition of Twitter. Thus, there’s surely more to follow. The likely future of Twitter might be changed in the hands of the colossal entrepreneur and tech tycoon, Elon Musk if the deal goes through. To change is to say at least, if not a drastic change. The first such change was noticeable already, even before Musk placed his bid to acquire Twitter in full, which was the approval of Musk’s request for the addition of the ‘Edit button’ on Twitter. Twitter said that it will be adding the edit button soon, which is already in its testing phase. However, on Musk’s walking away from the acquisition deal, it would rather be a not-so-anticipated legal battle that we would be seeing ahead. Brace yourselves because the deal can go either way now. The Twitter-Musk acquisition is now a long legal story that has the preliminary judge’s ruling in favour of Twitter!
Conclusion
Twitter is a famous place to put out opinions and ideas with the aid of words. This is the sole reason that makes it universally famous. Concise wordsmiths love it and are super users of this app. It is not a surprise to hear that Elon loves it too. In a tweet, Elon even mentioned that half of his tweets are from his porcelain throne, which is hilarious and maybe true.
For those wondering, porcelain throne is a slang term that refers to the toilet seat. This person, who is the CEO of Tesla and a very unpredictable person, is now also looking to be the owner of Twitter after buying the largest stake in the company. This sets the hopes of Twitter users to the roof, or we should say to the moon. Elon is unpredictable and is often the centre of controversies. The future is surely unpredictable for Twitter but will be exciting indeed.
As we follow the news more, we get to see that this story is not going to end in a small, tiny tale manner but is probably the beginning of some big shifts in one of the biggest companies in the world. As of now, Twitter still doesn’t stand acquired by Elon Musk. The story has more twists and turns than a Nolan movie. No one can really tell where this story is going to go next but this game of thrones is getting really unforeseeable and interestingly legal.
FAQs
Is Elon Musk on the Twitter Board of Directors?
No, Elon Musk was offered to join the Twitter board but Tesla CEO denied the offer and instead offered to buy out Twitter, which he is still enthusiastic about.
Is Elon Musk active on Twitter?
Yes, Elon Musk is one of the most active people on Twitter and his tweets are quite influential.
Did Elon Musk buy Twitter?
Elon Musk has offered to buy Twitter for $43 billion. As of the recent updates Musk plans to buy out 100% stakes in Twitter for $44 billion in an all-cash deal, which is pending still.
When did Elon Musk buy Twitter?
Elon Musk hasn’t bought out Twitter yet.
Is Twitter a public or a privately-owned company?
The popular social media platform is not still a privately-held company.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by IRCTC.
It can be safe to say, the need for catering services is constant throughout the year. The catering industry provides services to millions of customers worldwide through its variety of channels designed to cater to the customers’ needs. Even though event catering is likely the most well-known form of channel, it is not the only one available.
In India, the catering business is tremendously huge and growing. It is not only about weddings and birthdays, but we are talking about the catering services on railways which is also a thing that grabs one’s attention.
Nowadays, the Railway catering services are managed by both the government and some private licensed contractors. IRCTC is the largest government-owned catering service in India today.
IRCTC, the short-form of Indian Railways Catering and Tourism Corporation Limited, is a Central Public Sector Enterprise under the Ministry of Railways, Government of India that provides services such as ticketing, catering, and tourism services for the Indian Railways.
The company was founded in 1999 as an extended business of the Indian Railways to look after the catering and hospitality department at railway stations, in general.
In this article, discover all the information about IRCTC, its highlights, startup story, its business and revenue model, challenges faced, and much more.
Termed the Mini Ratna (Category-I), IRCTC comes under the ownership of the Central Public Sector Enterprise under the Ministry of Railways, Government of India. The company was incorporated with the aim to take over all the catering and hospitality services at every station, and train by creating low-cost accommodations, unique tour packages, informational and promotional materials, and global reservation systems for the development of local and international tourism in India.
IRCTC has its main administered office in New Delhi along with ten regional offices situated at Lucknow, Chandigarh, Jaipur, Bhopal, Ahmadabad, Guwahati, Bhubaneswar, Patna, Ernakulam, and Bangalore. The tourism and ticketing offices are located in New Delhi.
IRCTC is mainly involved in the following activities:
Catering and Hospitality
E-Ticketing
Travel and Tourism
Packaged Drinking Water (Rail Neer)
Currently, IRCTC has its operations located in the following manner,
Fourteen Rail Neer manufacturing plants at
Nangloi (Delhi)
Danapur (Bihar)
Palur (Tamil Nadu)
Ambernath (Maharashtra)
Amethi (Uttar Pradesh)
Parassala (Tamil Nadu)
Bilaspur (Chhatisgarh)
Hapur (Uttar Pradesh)
Sanand (Gujarat)
Mandideep (Madhya Pradesh)
Jagiroad (Assam)
Maneri (Madhya Pradesh)
Nagpur (Maharashtra)
Sankrail (Kolkata)
Eleven Base Kitchens setups at
New Delhi
Howrah
Ahmedabad
Patna
Mumbai Central
Mumbai CST
Ballarshah
Nagpur
Balasore
Sealdah
Kharagpur
Five Zonal Offices at
New Delhi
Mumbai
Kolkata
Chennai
Secundrabad
Additionally, IRCTC also has its services extended globally. They provide hassle-free tour packages to foreign destinations like the USA, Australia, Europe, Russia, Nepal, Macau, China, Hong Kong, Dubai, Singapore, Thailand, Malaysia, and Sri Lanka.
IRCTC – Industry
IRCTC belongs to the Catering and Hospitality industry. It was during the 19th century, that the network of railways began in the country. During that period, traveling was slowly picking up pace as many people started to travel from one part of the country to another, who needed food and drinks for the journey.
Ever since then, the catering and hospitality industry is increasing at a significant rate with the increase in travel by many tourists.
Compared to US$28.9 billion in 2018, the Indian tourism and hospitality industry expects to generate US$50.9 billion in traveler exports by 2028.
IRCTC – Leadership
IRCTC is headed by Smt. Rajni Hasija. She is the Chairman and MD at IRCTC.
Smt. Rajni Hasija
Smt. Rajni Hasija is a science scholar with an M.Phil from Delhi University. A postgraduate in Human Resource Management and a degree in Law, Smt. Rajni Hasija is the whole-time Director of Tourism & Marketing at IRCTC. Along with this role, she also happens to be the Chairman and Managing Director at IRCTC.
Smt. Hasija has over 29 years of experience in Indian Railways and has also worked in many managerial capacities as well as various public sector undertakings. She played a pioneering role in the creation and growth of the railroads’ www.irctc.co.in website for online ticketing facilities.
Smt. Hasija has also successfully completed many time-constrained projects for IRCTC, ranging from planning and executing the dynamic online cum counter ticketing platform for the Commonwealth Games 2010 to international marketing of the Maharajas’ Express Luxury Tourist Train.
She was able to pull this off because of her strong technical knowledge, organising and planning skills, and ability to communicate with her peers and team.
IRCTC – Startup Story
The story of IRCTC began in 1999 when the company was incorporated with the aim of the Ministry of Railways. IRCTC was initially entirely owned by the Government of India, but in 2019 it has been listed on the National Stock Exchange, with the Government still maintaining majority ownership. The government owns about 67% of ownership in IRCTC.
IRCTC is the only enterprise that is authorised to supply specific services to the Indian Railways. They are allowed to offer services such as online ticket booking, catering, and selling of packaged drinking water on trains and at railway stations. It was classified as a Mini Ratna public corporation in May 2008, which gave it some monetary independence.
IRCTC – Mission and Vision
Being in the catering and hospitality industry, IRCTC has developed many CSR activities.
They truly believe in doing for the society, for which their CSR vision is, “To be the leading provider of high-quality travel, tourism, and hospitality related services, for a range of customer segments, with consistently high level of customer satisfaction.”
IRCTC – Name, Tagline, and Logo
IRCTC means the Indian Railway Catering and Tourism Corporation Limited. The name rightly tells us the work they do that is providing catering and hospitality services to every railway station across India.
The tagline of IRCTC says, “Lifeline of the nation”
The logo of the IRCTC displays a combination of blue and grey symbols, which means pan-India connectivity of railway networks.
IRCTC – Business Model
IRCTC business is divided into four main services – hospitality and catering, online ticket booking for flights, trains, and buses, tour packages for both national and international places, and providing packaged drinking water under the label Rail Neer.
Here’s an in-depth dig into the business operations of IRCTC:
IRCTC boasts of being one of the largest hospitality and catering companies in the county. The catering business of IRCTC scatters across every passenger train in India, railway stations, and in and around the station premises.
The hospitality and catering business is split into three parts:
Mobile Catering Business
IRCTC oversees all of the Indian Railways’ onboard catering operations in more than 460 passenger trains with pantry cars, including the Rajdhani, Shatabdi, Duronto, Gatimaan Express, Mail/Express, and recently introduced Vande Bharat Express, and Tejas Trains.
In all of these trains, the pantry carriages are installed from which they get their onboard catering services.
Other Catering Services (OCS)
Under this service, its business is divided into two categories:
Static Catering Businesses
Under this business, IRCTC has static catering businesses as well. It’s amusing to know that IRCTC also indulges in managing Train side vending (TSV) on Mail/Express and Superfast trains that do not have the option of pantry cars.
With the help of TSVs, the onboard merchants take orders from the customers who have been offered with the menu chart. After the prescribed order is confirmed, the food is then picked up by vendors at the designated “meal pick-up places”, and it is then given to the passengers.
Base Kitchens
Another static business of IRCTC is Base Kitchens. The Ministry of Railways upgraded a total of 46 base kitchens with the object of producing high-quality meals for every one of its customers on trains.
These kitchens are in process and will be equipped with modern technology. Furthermore, the Ministry of Railways is soon going to activate CCTC cameras for live streaming in the public domain along with QR code facilities on meal packets.
Besides these two static businesses, IRCTC is also involved in other ancillary business activities. They have Food Plazas, fast food units, cell kitchens, and refreshment rooms.
Other Hospitality Businesses
IRCTC has also introduced other hospitality businesses like:
Executive Lounge
The idea is to provide and cater to the demands of the mid-segment and high-end passengers. It wanted to build a comfortable place inside the railway stations to dining in hygienic surroundings. The company took inspiration from airport lounges, it has already opened eight Executive Lounges in the Railway Stations mainly at the New Delhi (Paharganj Side & Ajmeri Gate side), Agra Cantt, Jaipur, Ahmedabad, Madurai, Sealdah, and Varanasi. Some of the other facilities provided at these lounges are wifi services, reclining sofas to relax, shower facilities, etc.
Retiring Rooms
IRCTC has already established retiring rooms at 19 railway stations. Furthermore, there are many rooms, which are under construction right now. The concept of these rooms is to enhance the accommodation facilities for the travelling passengers.
Rail Yatri Niwas/BNR hotels
At present, there are two Rail Yatri Niwas at New Delhi and Howrah railway stations and two BNR Hotels at Puri, Odisha, and Ranchi, Jharkhand.
E-catering Business
The most recent expansion of IRCTC’s catering and hospitality operations is E-Catering. This new business by the company is a combination of technology and cuisine.
With the help of a smartphone application, customers can order food from participating restaurants and food outlets using this internet-based service while riding a train. The passengers’ seats or berths are where food is delivered. To enjoy the service, customers have to book in advance.
Online ticket or Internet Ticketing
IRCTC launched its internet ticketing facility in 2002, and ever since then, IRCTC has made the lives of many travellers easy and convenient.
As per data and survey, there have been 15.88 lakh e-tickets booked as of 21st March 2022.
This proves that the company has emerged as one of the largest e-commerce websites not in India but also in Aisa Pacific.
Tourism business
Apart from just catering and hospitality business, IRCTC has put its benchmark in the tourism department as well. The company has played a majestic role in the development of rail tourism in India.
With its website www.irctctourism.com, the company offers a myriad of options Rail based Packages, Hotels, and Railway Retiring Rooms to provide the users with a one-stop solution to all their travel needs.
By 2015, IRCTC started giving tour packages that include flight booking, hotel accommodation, sightseeing, etc. These packages are meant for both national and international trips.
One of the most unique services provided by IRCTC is the Land Packages. These packages are meant for those customers who are interested in visiting temples for darshans, more commonly for teertha darshan.
It also offers air ticketing, and bus ticketing and has now also ventured into cruise bookings targeting both domestic and international markets.
Packaged Drinking Water
Another major business of IRCTC is manufacturing packaged drinking water known as Rail Neer. Rail Neer is the company’s own branded packaged drinking water.
Presently, the company has fourteen operational manufacturing plants of Rail Neer. These are located at Nangloi, Danapur, Palur, Ambernath, Amethi, Parassala, Bilaspur, Sanand, Hapur, Mandideep, Nagpur, Jagiroad, Maneri, and Sankrail. In addition to this, the company is planning to set up six other plants to increase the production capacity of 18.40 lakh bottles per day in FY 2021-22.
IRCTC – Revenue Model
IRCTC’s most of its earnings are through its internet ticketing facility. The company has reported that a total amount of Rs. 38178.32 crores was collected as ticket fare from the users of E-ticketing during the year 2021-22. It has also been shared by IRCTC that the total number of tickets booked was 4174.49 Lakhs, which is 140% of the previous year.
IRCTC gets 63% from e-ticketing, 22% from the catering business, 8% from Rail Neer, 7% from tourism, and the rest from State teertha.
IRCTC – Challenges Faced
In 2016, there was a case against the IRCTC by the Mumbai police for not maintaining its customers’ data. The allegation was that the company was involved in leaking the private data of its 10 million customers.
The company also faced criticism that there were data breaches and exposures, and there are worries that the government may have utilised passenger information to transmit targeted advertisements.
Another challenge faced by IRCTC was during the 2020–2021 Indian farmers’ protests. The company was criticised for sending emails without its customer’s content.
The email advertised the benefits of government policies to Sikh farmers who are protesting under the subject “PM Modi and his government’s special relationship with Sikhs”. Later, it was found that these emails were sent to promote government messages.
IRCTC – Partnerships and Collaborations
Earlier this year, IRCTC announced that it has partnered with Paytm to digitise its ticketing system for customers through its Automatic Ticket Vending Machines (ATVM) installed at every railway station. Its online ticketing system now has QR code digital payment solutions.
On 21 February 2022, IRCTC collaborated with the Bank of Baroda to launch IRCTC BOB Loyalty Cobranded Credit Card on the RuPay platform.
Previously, it has also collaborated with SBI to come up with a travel credit card called IRCTC Rupay SBI card. The credit card gives access to various benefits like railway lounges, travel offers, rewards, and many other benefits.
IRCTC – Mergers and Acquisitions
As per sources, the Central government is planning to merge the six public sector undertakings (PSUs) by the end of 2023.
The companies which are likely to be merged are Rail Vikas Nigam Limited (RVNL) with Indian Railway Construction Limited (IRCON), RailTel Corporation with Indian Railway Catering and Tourism Corporation (IRCTC), and Braithwaite and Co Limited with Rail India Technical and Economic Services (RITES).
The Ministry of Railways hopes to get better funding and boost the overall value of these PSUs with this merge.
IRCTC – Social Media Presence
The IRCTC does strong advertising and branding on its social media profiles. The company does seem to be quite active on its social media channels by posting various interactive and informative posts regarding its services.
You can follow the company for its latest updates on its Facebook, Twitter, and LinkedIn page.
IRCTC – Competitors
The tourism and hospitality sectors are swarming in the Indian market, which of course, gives rise to tough competition between these companies. IRCTC is not alone in the catering business, many other companies give a tough fight. IRCTC competes with the following companies:
Interglobe Aviat
Delhivery
Indian Hotels Co.
Blue Dart Expres.
Devyani International Ltd.
Easy Trip planners Ltd.
Westlife Development Ltd.
Sapphire Foods
TCI Express
Chalet Hotels
Restuarant Brand
Lemon Tree Hotel
NIIT
Mahindra Holiday
Thomas Cook
ITDC
SpiceJet
IRCTC – Awards and Achievements
Throughout its journey, IRCTC has come a long way in receiving many achievements or milestones to take its catering and tourism services to newer heights.
Some of the achievements of IRCTC are:
IRCTC launched a new e-Ticketing Website & Mobile App for the booking of online Railway Ticket (2020)
A payment wallet named iMudra provides an easy way to book railway tickets, and pay, send or withdraw money. (launched in 2019)
Launched the first semi-private Train ”Kashi Mahakaal’ inaugurated by Prime Minister Narendra Modi (2020)
Launched second semi-private train ”Tejas” between Mumbai and Ahmedabad (2020)
Launched Tejas Express from Mumbai CST to Karmali, Goa (2017)
IRCTC – Future Plans
IRCTC has shown great results in the stock market. Many experts believe that the company is planning to grow exponentially. It is expected that stocks would grow from Rs 3,000 to Rs 5,000 stock level. As of 2021, the market capitalisation of IRCTC is Rs63,726 crore.
From the looks of this tremendous growth, the future of IRCTC seems bright. It is also assumed that with the rise of internet usage, the company will see a growth in its online ticketing business at a CAGR of 17% in the coming years.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Facebook.
In the world of digitalisation, there are only a handful of people who are not on this social media platform, Facebook. Although the company, Facebook, began as a social network for particular college students, it has now evolved into an important tool for day-to-day socialising and business professionals.
As a small company owner, Facebook may be precisely what you need to find potential workers, get new clients, or see what your competitors are up to. And doing so – browsing content on Facebook– does not need creating your new Facebook profile.
Facebook is an American online social networking website owned by Meta Platforms. Mark Zuckerberg, along with other three Harvard University undergraduates, launched Facebook in 2004. Facebook is free to use, yet ads on the platform provider for the bulk of the gross profitability. Members may establish accounts, upload photos, join established communities, or start their own.
Facebook’s popularity stems in part from creator Mark Zuckerberg’s insistence from the beginning that members be truthful regarding who they really are, as phoney pages are just not permitted.
According to the company’s business, transparency is necessary for developing interpersonal relationships, exchanging information and recommendations, and strengthening society as a whole. It also noted that the bottom-up, peer-to-peer networking of Facebook users makes it easier for businesses to connect with customers about their services and goods.
Know more about the Meta-owned company, Facebook, and how it is helpful to us, its business model, startup story, and much more by reading this article further.
Facebook – Company Highlights
Startup Name
Facebook
Parent
Meta Platforms (formerly known as Facebook, Inc)
Headquarters
Menlo Park, CA
Industry
Social Media Platform
Founders
Mark Zuckerberg, Andrew McCollum, Chris Hughes, Dustin Moskovitz, and Eduardo Saverin.
Facebook, a US-based online social media and social networking website is owned by Meta Platforms. The site’s features include Timeline or wall, a section on the user’s homepage where users can post content and friends can send messages, Status, which allows users to notify friends of their current location or set of circumstances, and News Feed, which notifies users of changes to their friends’ statuses and profiles.
Through Facebook, the users can communicate with one another and send and receive messages. Besides, they can also signal their approval for posts and comments on Facebook using the Like button, which can also be seen on many other websites.
In 2006, Facebook allowed anybody above the age of 13 to join, expanding its enrolment beyond students. Advertisers were able to develop new and successful consumer connections, just as Zuckerberg expected.
In October 2021, Facebook announced that its parent business will be renamed Meta Platforms. The name change signalled a shift in focus to the “metaverse,” an augmented reality realm in which people would participate. The Meta Platform now includes Facebook, the social networking platform.
Facebook – Industry
Customers can engage, produce, and share material and information through the social media market, which is made up of sales by entities (organizations, single traders, or partnerships). Social media platform users can exchange photos, videos, and audio clips.
This market generates revenue from advertising sales and other services provided through social networks. Advertising on social media and social media subscriptions are two different segments of the social media business.
The worldwide social media industry is predicted to increase at an annual pace (CAGR) of 39.7% from $159.68 billion in 2021 to $223.11 billion in 2022.
Businesses are reforming their operations and recovering from the effects of COVID-19, which had previously culminated in restrictive measures such as social distancing, the closure of commercial firms, and remote work, all of which caused operational challenges. Growing at a CAGR of 39%, the market is estimated to reach $833.50 billion in 2026.
With 46% of the global social media market in 2020, Asia Pacific was the most important region. The 2nd-largest area, North America, accounted for 32% of the worldwide market. Africa was identified as the fastest-growing region in the social media market between 2020-2021.
Facebook – Name, Logo, and Tagline
Facebook Logo
According to David Kirkpatrick’s book The Facebook Effect, the name Facebook was picked because every Harvard student was given one of these, which held images of their classmates and were referred to as Facebook.
A majority of the American university students received face book directories, which consisted of individuals’ names and photos and were distributed among the university students to help them know each other. This is where the name “Facebook” came from, the sole aim of which is to connect people with their friends and family via its social media platform. The small F sign on Facebook’s site is considered to represent the name Facebook.
Facebook’s tagline used to be, “It’s Free and Always Will be” which was changed to, “It’s Quick and Easy.” It was changed silently between 6th and 7th August 2019, and Facebook didn’t clarify the reason why.
Facebook – Founders and Team
Facebook was founded by Mark Zuckerberg, Andrew McCollum, Chris Hughes, Dustin Moskovitz, and Eduardo Saverin.
Co-founder and current CEO of Facebook – Mark Zuckerberg
Mark Zuckerberg
Mark Zuckerberg is an American businessman, media personality, and philanthropist. He is best known as the co-founder of Meta Platforms, Inc. (previously called Facebook, Inc.), where he currently serves as chairman, CEO, and dominant shareholder. He is also a co-founder and board member of Breakthrough Starshot, a solar sail spacecraft development initiative.
Andrew McCollum
Andrew McCollum joined Philo, an entertainment-focused OTT streaming service, as CEO in 2014. Philo debuted countrywide in November 2017. Andrew was on Philo’s board of directors, supervised the company’s co-founders, and was one of the company’s early investors before becoming CEO.
Andrew was a member of the founding team of Facebook before joining Philo, and he has a long-standing interest in the social design of products. Following Facebook, Andrew worked as an Entrepreneur in Residence at New Enterprise Associates (NEA) and Flybridge Partners, two of Philo’s investors. He is still an active angel investor and counsellor in the early stages of a company’s development.
Chris Hughes
Chris Hughes (November 26, 1983) is an American entrepreneur who co-founded and served as spokesperson for the online social networking and directory site Facebook with his Harvard companions. He was the editor-in-chief and publisher of The New Republic from 2012 until 2016. As of 2019, Hughes is a co-chair of the Economic Security Project.
Dustin Moskovitz
Dustin Moskovitz is the CEO and Co-Founder of Asana. He co-founded Good Ventures and the Open Philanthropy Project. He is also one of the co-founders of Facebook.
Eduardo Saverin
Eduardo Saverin is a B Capital Group co-founder and partner. Saverin is a co-founder of Facebook and the initial investor. Saverin is eager to put money into the next wave of technical developments. He has counselled and worked closely with an array of firms of different kinds and stages as a technology investor and supervisor, all of which share one consistent theme: a love for people-centric technology, as well as a mobile platform lean with pan-global ambitions.
The Facebook team last registered 71,970 full-time employees in December 2021.
Facebook – Startup Story
Facebook, a social networking website, was established on October 28, 2003, as “FaceMash” before rebranding as “The Facebook” on February 4, 2004. It was established by Mark Zuckerberg and his Harvard University classmates. The website’s designers initially limited membership to Harvard students.
Nonetheless, it was gradually expanded to include additional Boston-area colleges, the Ivy League, and finally most universities in the United States and Canada, businesses, and, by September 2006, everyone over the age of 13 with a valid email account.
In September 2004, the Wall was added to a Facebook user’s online profile. This widely used feature allowed a user’s friends to post information to their Facebook wall, and it rapidly became an important part of the social aspect of the network. Facebook had gained one million active members by the end of 2004. However, the firm was still lagging behind Myspace, the top online social network at that time, with five million users. Nevertheless, in the long run, MySpace failed to compete against Facebook.
2005 was a momentous occasion for the company. It was then that the idea of “tagging” people in photographs posted to the site was born. Tags were used to identify themselves and others in photos that were viewable to other Facebook friends. Facebook users can upload an unlimited amount of photos but the facial recognition feature of Facebook, which tagged the persons on the photograph earlier, is not there anymore now.
Outside of the United States, high school and university students were allowed to join the ‘Facebook army’ in 2005. By the end of that year, it had six million monthly active users.
Facebook’s mission is to give people the power to build community and bring the world closer together.
Based on the company’s social media service offerings, Facebook’s corporate vision statement is “People use Facebook to stay connected with friends and family, discover what’s going on in the world, and share and express what matters to them.”
This corporate vision demonstrates that the company is more than just an online social networking service. Rather, the firm aids in the gathering of information and meaningful dialogue among individual customers.
Facebook – Business Model and Revenue Model
Facebook makes money largely through showing commercials from businesses on its Facebook and Instagram apps. Ads contributed to 98% of Facebook’s $86 billion revenue in 2020. The remaining 2% of profits came mostly from Oculus and Portal device sales, as well as development payment fees.
Facebook’s business strategy is centred on providing its products and technologies to billions of users for free and then generating money by enabling businesses to show advertisements to Facebook’s consumers. Advertisers pay Facebook auction-based pricing depending on supply and demand.
This implies that the individuals who consume Facebook’s services (users) aren’t the people who are paying for them. Small companies who advertise on Facebook’s collection of applications are the real clients. With the launch of Facebook Shops, the initial iteration of Facebook’s e-commerce capabilities, the company’s focus on small companies became much more obvious.
Notwithstanding its history and present problems, Facebook is doing incredibly well. Despite the COVID-19 pandemic, sales increased by 22% to $86 billion in 2020. It had a profit margin of 38% and a net income of $29 billion.
Facebook – Funding and Investors
Facebook raised a total of 16 funding rounds to date, as of July 12, 2022, which helped the organisation raise over $16 bn. Here’s a look at the Facebook funding table:
Date
Round
Amount
Lead Investors
Oct 20, 2014
Post-IPO-Equity
$13.8B
–
May 10, 2011
Secondary Market
–
–
Mar 4, 2011
Private Equity Round
–
–
Jan 21, 2011
Private Equity Round
$1.5B
DST Global, Goldman Sachs Investment Partners
Jan 1, 2011
Secondary Market
–
–
Jun 28, 2010
Secondary Market
$120M
Elevation Partners
May 26, 2009
Series D
$200M
DST Global
May 1, 2008
Debt Financing
$100M
TriplePoint Capital
Mar 27, 2008
Series C
$60M
Horizons Ventures
Jan 15, 2008
Series C
$15M
Global Founders Capital
The Facebook investors include Elevation Partners, DST Global, Horizons Ventures, Goldman Sachs Investment Partners and more.
Facebook – Investments
Facebook has made 44+ investments in total to date, as of July 12, 2022. Here’s diving into the most recent Facebook investments:
Date
Organization Name
Round
Amount
May 27, 2022
OlaClick (YC W21)
Seed Round
$4.4M
May 4, 2022
Ami
Seed Round
$3M
April 6, 2022
VerSe Innovation
Series J
$805M
Jan 1, 2022
PlayCo
Corporate Round
$40M
Nov 8, 2021
Inworld AI
Seed Round
$7M
Oct 5, 2021
echo3D
Series A
$4M
Sep 30, 2021
Meesho
Series F
$570M
Aug 3, 2021
Formaloo
Grant
–
Jul 5, 2021
Helpmum
Grant
$55K
May 3, 2021
Obviously AI
Seed Round
$3.7M
Apr 5, 2021
Meesho
Series E
$300M
Jan 1, 2021
FEMCA Financial Services
Pre-Seed Round
–
Dec 24, 2020
ArtyOwl.com
Grant
₹100K
Dec 4, 2020
Com Olho
Grant
–
Facebook – Acquisitions
Facebook has acquired a total of 95+ companies to date. The last acquisition of Facebook is presize.ai, which the company acquired on April 14, 2022.
Here’s a look at some of the recently acquired companies of Facebook:
Acquiree Name
About Acquiree
Date
Amount
presize.ai
Presize is a Germany-based company that is fuelled by the Computer Vision and Deep Learning technologies to develop the most accurate body scanning software
Apr 14, 2022
–
ImagineOptix
ImagineOptix is a US-based company that manufactures optical thin films to help the production of small, affordable, battery-efficient video projectors
Dec 21, 2021
–
Within (VR/AR)
Within is a virtual reality and augmented reality media and technology company.
Oct 29, 2021
–
AI.Reverie
A leading provider of synthetic data to train machine learning algorithms.
Oct 12, 2021
–
Unit 2 Games
Unit 2 Games is a game creation and sharing platform designed to develop video games
Jun 4, 2021
–
Kustomer
Kustomer is an omnichannel Software-as-a-Service (SaaS) CRM platform specializing in customer service
Nov 30, 2020
$1B
Lemnis Technologies
We set a new standard for visual fidelity in VR/AR head-mounted displays, opening new opportunities for professional users.
Sep 22, 2020
–
Mapillary
Mapillary has built a street-level imagery platform that uses photos which have been uploaded by members of the public.
Jun 18, 2020
–
Giphy
Giphy is an online database and search engine that allows users to search, share, and discover GIFs.
May 15, 2020
$400M
Sanzaru Games
Sanzaru Games is an independent console video game development studio.
Feb 25, 2020
–
Scape Technologies
Scape is a computer vision startup, building the localization engine for city-scale augmented reality.
Feb 9, 2020
–
Packagd
Packagd is a series of app that offers new mobile shopping experience.
Dec 20, 2019
–
Facebook – Growth
Facebook is the most popular social media network in the world, with 2.91 billion active monthly users as of the fourth quarter of 2021, which went up to become 2.93 bn in Q1 of FY22. Here’s a look at the rise of Facebook’s monthly active users.
Facebook’s Growth of Monthly Active Users
The number of registered Facebook members topped 1 billion in the third quarter of 2012, making it the first social networking service to accomplish so. In the first quarter of 2021, the company said that 3.51 billion people used at least one of its key platforms on a monthly basis (Facebook, Whatsapp, Messenger, or Instagram).
Facebook initially began with only 150 people working with the same firm back in 2006. This rose and rose over the years, and was last registered with 71,970 full-time employees in December 2021.
What’s Facebook Changing to Ramp up Growth?
Facebook and Instagram both will see some changes, and many of these changes will be inclined towards altering the process of how Facebook and Instagram users share posts and videos. On this, Mark Zuckerberg announced that the platforms will make it easier for the users to control what they “see and discover on Facebook.” Here are some of the proposed changes that will take place:
Feeds will be introduced as a new tab. This will help the users see the most recent posts from their friends, groups, and Pages.
A Favourites list can be curated of the friends and Pages the users care about.
The first thing that the users will now see is Home.
According to Bloomberg, Facebook is on a mission to change the way it shows its users’ posts and videos in order to enable the users to watch content from accounts that they don’t already follow. This will, thus, help the Meta flagship product, Facebook to better compete with viral video app TikTok.
Facebook’s Annual Revenue :
Year
Revenue
2010
$1.97 billion
2011
$3.71 billion
2012
$5.08 billion
2013
$7.87 billion
2014
$12.4 billion
2015
$17.9 billion
2016
$27.6 billion
2017
$40.6 billion
2018
$55.8 billion
2019
$70.6 billion
2020
$85.9 billion
The revenue of Fb in Q3 2021 was registered at $29.01 bn, which included $28.27 bn in ad revenues and $734 mn worth of other revenue.
Facebook Begins Testing Ethereum and Polygon NFTs on Profiles
Facebook announced that it has already started rolling out NFTs for some of the American creators in a report dated July 1, 2022. A spokesperson of the social media giant mentioned that the platform has started initially with NFTs on Ethereum and Polygon and will eventually add support for NFTs on Solana and Flow as well.
According to a post by Meta Product Manager Navdeep Singh, the users’ Facebook profiles will have a “digital collectibles area”, where they can display their NFTs, which are special blockchain tokens representing ownership. Singh also mentioned that the users will also be able to link their Facebook profiles to their bitcoin wallets. Also, they will have the option to convert their NFTs into Facebook posts that may then be shared, liked, commented on, and responded to, just like any other Facebook post.
Here’s the first look shared by Navdeep:
Facebook NFTs
Face Recognition Shutdown
Face recognition will be phased out of Facebook’s social network, as announced by the company in November 2021. Its use will be limited across all products, and over a billion saved faces will be deleted, according to Meta, Facebook’s newly formed parent company.
According to a blog post by Meta’s VP of artificial intelligence, Jerome Pesenti, the action will destroy over a billion saved faces in the following weeks. The removal of such a large database signal that Meta would limit the use of facial recognition in its planned “metaverse” projects, which will involve actual people interacting in vast virtual settings, including game environments, at least initially.
“The many specific instances where facial recognition can be helpful need to be weighed against growing concerns about the use of this technology as a whole,” wrote Pesenti. “There are many concerns about the place of facial recognition technology in society, and regulators are still in the process of providing a clear set of rules governing its use,” he said. “Amid this ongoing uncertainty, we believe that limiting the use of facial recognition to a narrow set of use cases is appropriate.”
Facebook – Competitors
The top competitors of Facebook are technology giants like:
The prominence and magnitude of Facebook have prompted condemnation from a variety of quarters. Internet privacy, its face recognition software, excessive data retention, DeepFace’s addictive nature, and its function in the workplace, including access to employee accounts by employers, are all challenges.
Facebook has been chastised for its consumption of electricity, tax evasion, real-name user verification regulations, censorship, and participation in the US PRISM surveillance program.
Users of Facebook are said to have negative psychological impacts such as jealousy and tension, a lack of focus, and social media addiction. Facebook has been slammed for enabling users to post obscene or illegal content. Copyright and intellectual property infringement, hate speech, rape, terrorist incitement, fake news, crimes, murders, and live-streaming violent situations are among the specifics.
Sri Lanka suspended both WhatsApp and Facebook in May 2019 as a temporary fix to restore peace following anti-Muslim violence, the worst in the country since the Easter Sunday attack the preceding year. Between the fourth quarter of 2018 and the first quarter of 2019, Facebook removed 3 billion fake accounts, bringing the total number of monthly active users to 2.39 billion.
The company said in late July 2019 that the Federal Trade Commission was investigating it for antitrust breaches.
Facebook Layoffs
Facebook is looking to lay off employees and has already asked the process managers to identify the low-performing employees and move them to exit, as per reports dated July 15, 2022. The company has been reportedly struggling with macroeconomic pressures and incurred hits to its advertising business.
Facebook Parent Meta Faces Trademark Lawsuit
Meta Platforms Inc., the parent company of Facebook has been hit by a trademark lawsuit filed by Meta X LLC., a virtual reality-based company, in Manhattan federal court, as of the reports dated July 26, 2022. MetaX alleged that the Facebook owner (earlier Facebook, Inc.), which is now renamed Meta Platforms Inc., has stolen its name since its pivot to metaverse. MetaX also reported that Meta has infringed its federal “Meta” trademarks.
Following the renaming of Facebook as ‘Meta,’ the firm will be “metaverse first,” according to CEO Mark Zuckerberg, which means you won’t need a Facebook account to access other Meta products in the future.
“I’ve been thinking a lot about our identity as we begin this next chapter,” he said. “Facebook is an iconic social media brand, but it just doesn’t encompass everything that we do.”
It also suggests that the company would divide its activities into two segments: one for its future platform efforts (Reality Labs is going to be the tag for that segment) and another for its app family.
Whilst expanding their social networking applications will remain a priority, he believes that the company’s identity will become less tied to a single product/ service over time.
In short, the metaverse will be an embodiment of the internet, according to Zuckerberg, who believes it will be the next integrated virtual media to emerge after video (which evolved from photos and texts).
Rather than staring at a screen, you’ll be able to immerse yourself in these activities. That’s most probably to be accomplished through instilling a strong sense of presence in a shared environment, which would be the metaverse’s distinguishing characteristic. This will demand hardware from the firm, such as the Oculus Quest 2 or others.
The firm is thinking about offering incentives to developers and new users to join. To boost adoption, these alternatives include cutting costs, subsidizing gadgets, or selling them at a loss.
It’s crucial to stress, though, that the metaverse of Zuckerberg’s visions is far from complete. Currently, just the fundamental building pieces work, according to Zuckerberg. In the end, technological obstacles remain—compressing augmented reality technology and sophisticated computers into a pair of spectacles, for example, is a difficult task.
Although Zuckerberg vows to encourage security and privacy on this new “social technology” network in a founder’s letter, it remains to be seen if he can persuade people to use it, particularly younger generations who have been abandoning Facebook. Many people question if a new interface would simply reintroduce the same old issues.
FAQs
What does Facebook do?
Facebook is an American online social networking website owned by Meta Platforms.
Who founded Facebook?
Facebook was founded by Mark Zuckerberg, Andrew McCollum, Chris Hughes, Dustin Moskovitz, and Eduardo Saverin.
When was Facebook founded?
Facebook was founded in the year 2004.
How does Facebook make money?
Facebook makes money primarily by showing advertisements from businesses on its Instagram and Facebook apps.
Which companies do Facebook compete with?
The top 10 competitors in Facebook’s competitive set are:
With the rising toxicity and pollution levels in the environment, eco-friendly products have become the need of the hour. Governments and various companies across the world are finally discouraging the use of plastics, which causes disastrous environmental issues. This has paved way for the paper bag-making businesses. Paper bags are in great demand nowadays for their recyclable and sustainable features in nearly every commences activity.
Paper bags, as the name implies, are bags made out of paper. These papers are usually created with the chemical pulp that is manufactured with the help of the kraft pulping process.
Paper bags are not a new thing that we witness today. The paper bag-making industry is pretty old in India and is still found in a majority of Indian shops, mainly in tier 2, and tier 3 cities, and beyond. However, most of these are envelope-styled bags, which lack handles. The flat-bottomed bags with handles are pretty new to the Indian market though, which is generally known for its eco-friendly bags made out of jute.
Francis Wolle first invented the machine to mass-produce paper bags back in 1852. His brother and Wolle patented the machine and established the Union Paper Bag Company. It was James Baldwin, who first received a patent for the apparatus for making square-bottomed paper bags in 1853. He was a papermaker of Birmingham and Kings Norton in England. Baldwin then began to use the image of a flat-bottomed bag as his business logo.
The concept of flat-bottomed paper bags got a boost in 1871 when inventor Margaret E. Knight ideated a machine that would be able to create flat-bottomed paper bags. These bags were detected fit to carry more than the previous envelope-style design. Eventually, Charles Stilwell patented a machine that is capable of creating square-bottom paper bags that had pleated sides in 1883. These bags emerged as a better alternative that is easier to fold and store. The Stilwell bags also came to be known as S.O.S or Self-Opening Sack.
The latest modification of the paper bags that come with handles was actually implemented by Walter Deubener in 1912. A grocer from Saint Paul, Minnesota, Deubener used cords with paper bags to reinforce them and also added carrying handles. Named after Walter Deubener, the “Deubener Shopping Bags” were able to carry nearly 75 pounds then, which was why it soon rose in popularity. It recorded a sale of 1+ mn bags a year by 1915.
After this, paper bags with handles became the standard for department stores and others, especially for their ease of use and durability. However, paper bags were trumped by plastic bags, which were introduced in the 1970s. These bags were lightweight and affordable, which propelled them to be the regular choice of both shoppers and merchants. However, plastic bags were eventually found to be really harmful to the environment, which is the reason for the growing demand for paper bags and other eco-friendly options.
Advantages of Using Paper Bags
Paper bags are largely embraced today by shoppers and shopkeepers because of the list of advantages they bring to us. Here’s to list of some of them:
They are biodegradable and recyclable
They don’t cause harm to the environment
Paper bags pose less risk of suffocation
These bags don’t harm the marine life
The paper bags are easy to dispose of
They are sustainable options
They save energy
The making of paper bags is easy and efficient
They are cost effective
Paper bags are efficient marketing tools
They can also serve as excellent gifts for corporates and others
Common Uses of the Paper Bags
Following are some of the major areas where paper bags are used:
Gift packaging
Food packaging
Shopping
Paper cover making at home
Medical use
Jewellery packaging
General purposes
Advertising
Types of Paper Bags
Paper bags can be classified into numerous categories. However, when looking at these bags, there are 2 prominent varieties of them that one can usually find:
White paper bags – The white paper bags or the white kraft paper bags are chemically treated variants of paper bags. These bags are bleached and treated with other chemicals, which help whiten them and purify the natural kraft pulp.
Brown paper bags – The brown paper bags or the brown kraft paper bags are made of unbleached kraft pulp.
Market Share of Paper Bags in India – White vs Brown Kraft Paper Bags
The Paper Bag Industry, its Market Potential, and Opportunities
The global market for paper bags is estimated to grow at a steady CAGR of 4.1% between 2022-2030 and is to reach $7.3 bn during this period. The global market size of paper bags was $5.2 bn in 2022. The collective paper bag manufacturers’ market share or value share of the top 5 companies in 2022E is estimated at 11%.
Global growth of paper bag market.
The Indian paper bag industry last stood at $5.95 bn when reported in 2018. the country today, exports paper products worth Rs 400 crore per annum.
Paper has no real competing product. Plastic bags, once regarded as a substitute for paper bags have lost their market over time. Moreover, the establishment of consumer stores and shopping malls has further increased the demand for paper bags. Hence, the paper bag-making business is a booming opportunity for new and aspiring entrepreneurs.
10 Easy Steps to Start Paper Bags Making Business
Paper bag making is rising in demand and more and more companies and entrepreneurs are joining in to make the best of the paper bag-making business. Now, if you are also looking forward to building a paper bag-making business, then here are some easy and effective steps that you can keep in handy:
Perform a thorough market research
Thorough market research is essential regardless of whatever the business is that you want to build. Proper market research would help you:
Know more about the industry
Build your strategies
Market your products effectively
Analyze your competitors
Perform a SWOT analysis
Thrive in the long run
Build a robust business and revenue model
Business models are of various kinds, one type of business model may not suit all of the industries and products/services around which the businesses revolve. So, spend time generously building a business model that is cost-effective and efficient for the customers, which would thrive in the future. It is also equally important to chalk out all the ways through which you would be able to earn, embracing the business model that you have zeroed in.
Estimate the Paper Bag Making Business Costs
As paper bag making is generally a small-scale business, it will require minimal investment. The main areas of investment will be the cost of machinery, labor, and land.Maintenance, transportation, and marketing will contribute to variable investments.
The price of one fully automatic paper bag-making machine is around 5 – 8 Lakhs INR. The price is dependent on the production capacity of the machine. One fully automatic machine can produce 15000 pieces/hour. Researching and proper planning as to where to spend and the choice of suppliers will also reduce your cost to a significant extent.
You will need to register your business and obtain a trade license from a local municipal authority.
Here, you can proceed either with a sole proprietor or an LLP registration of Company registration.
Then you will have to get your UDYOG AADHARMSME registration or SSI registration completed. It is for businesses running under the name of small-scale industries.
After that, you need to make your company GST-compliant, by opting for GST registration.
Lastly, you need to procure the BIS certification for your company, which is offered by the Bureau of Indian Standards
Focus on the Legal Compliance of your Business
Registering your paper bag-making business is a significant part of making your business legally compliant, which contains other factors too. These legal factors need to be checked first by seeking the help of local government representatives. Looking for and proceeding with efficient business insurance would further make your paper bag manufacturing business future-proof.
After all these things are taken care of, you can start your business professionally, but the naming of the business plays an important part, then.
Name your Business wisely
The naming of your business will play a huge role in the future growth and success of your business. Hence, you need to name your paper manufacturing business wisely. To choose a perfect name for your paper-making business, you need to ensure:
The name is unique
It is simple
It is easily pronounced and written
The name should be marketable
It should be memorable
The name should be relevant to the industry
Select a Proper Location for your Paper Bag Manufacturing Unit
Choosing an appropriate location according to your business size is very important. Moreover, the rented land cost must not outweigh your profits. To make transportation costs minimum, try to fix the location near the market and reduce the distribution channel. A semi-urban area is the best choice to establish paper bag-making businesses. It reduces costs in taxes, rents, manpower, and other important obligations.
Make Provisions for Procuring the Raw Materials Required for Paper Bag Making
The quality of your products and eventually the profits depend on the raw materials used. Paper bags with outstanding quality and fine texture can boost your competitive advantages and steal the focus of the market and the customers. Therefore, the appropriate quality, as well as quantity of raw materials, should be ensured.
These are some basic raw materials required for paper-making:
Paper rolls
Printing chemicals, ink, etc
Gums
Strings
Polymeter Stereo
Flexo Color
You do not need to overstock them as it may cause unnecessary storage costs.
Install Proper Paper Bag Manufacturing Machinery
Now, after the procurement of the raw materials for paper bag-making activities, you need to determine the type of paper bag your business will focus on manufacturing, and then select suitable machinery. Here, you would also need to check whether you will buy eco-friendly carry bag-making machines, wholesale biodegradable bag manufacturing machines, cotton bag-making machines, or something else.
The durability, reliability,and productivityof the machines should be checked thoroughly before purchasing. Depending on these factors, machinery costs from 5 lakhs to 10 lakhs.
Some of the basic features you can get when you buy a paper bag-making machine are listed below.
Stereo design roller
Flat forming dye
3 horsepower motor for the main drive
Double-color or four-color flexo printing unit attachment
We recommend you visit a paper bag manufacturing firm in order to know more about the working of machines. This will also give you an idea of the machine you need to buy for manufacturing paper bags.
Engage the Labor Required
Labor size depends on the sizeof the business but skilled manpower is a must. A healthy interactive training program can help them learn the manufacturing process and meet the requirements of the employer.
A small scale paper bag making business
Some Steps to be Kept in Mind to Make Paper Bags
The very first step is to decide on the size of the product. It should meet the client’s needs.
The next step is to print the logo. The print quality should not be compromised.
Then, the paper should be left for folding, pasting, and shearing which can be done through machines.
The last two steps are eyelet fitting and lace fitting, which needs to be properly done.
Branding and Promotion of the Product
Presentation is every bit as important as manufacturing. Without the right promotion, no business can survive long-term. There must be a uniqueness in your product description to attract your client’s attention. A logo represents the image of your company and is good for promotion. You can hire freelancers to design your company’s logo as you want. Also, you can use mediums like local magazines and newspapers for advertising your paper bags.
Social media provides a great platform for promoting your product and reaching the consumer crowd quickly. Establish an online website that not only gains orders but also creates an impactful image of your product to viewers. Research and conduct small surveys of the local and online markets.
The paper bag-making machine is capable of making 60 bags in a minute. You can make a profit of 10 paise per bag. So, you can get a profit of Rs 6 for every minute you invest in bag-making. With production and marketing going smoothly, you can expect to earn near about Rs 2800 on a daily basis. This sums up to Rs 70000 per month. Although these profits vary depending on various other factors in your business.
Conclusion
Paper bag making can be really profitable if executed properly, taking care of all the above measures. This business is full of interesting opportunities, and the output, which is paper bags, is the need of the hour and this need will only escalate in the future. Anyone can start a paper bag-making business because it doesn’t require large investments or vast land space or even complex machinery. In fact, you can initiate your business at home too if you have sufficient space for proper planning and researching. So go forth, invest time and energy, and set up your own paper bag-making business.
FAQs
What are paper bags?
Paper bags are an environmental-friendly choice of bags. Being made out of paper, these bags are rising in demand while more and more people are rejecting plastic bags.
What is the paper packaging bag manufacturers’ market?
The global paper packaging bag manufacturers market is valued at $5.2 bn in 2022 and will grow by 4.1% CAGR between 2022-2030, and is expected to reach $7.3 bn during this period.
From where is the paper bag procurement done?
Paper bag procurement can be done by visiting physical local stores, factories, and wholesalers, or by placing orders for the same online.
What is Paper bag limited Kenya?
Paper bags Ltd. is a Kenyan packaging company that manufactures quality paper packaging materials – brown and white paper bags, sacks, and more.
What are some popular paper bag manufacturers in India?
Paper bags is one of the industries that are flourishing today in India and has great potential for future growth too. Here’s mentioning some of the prominent paper bag manufacturers in India:
Yes Sir Bags
Eco Bags India
Vachi Paper products
A. R. Enterprise
Papyrush
How are paper bags made in industry?
The paper bag manufacturing industry is huge today. However, if you are wondering how paper bags are made in the industry now, then here are some important steps that are carried out by the best paper bag manufacturing companies in their paper bag production factories:
First, they select the raw material needed and gather them
Then, they proceed with paper steering, where the cutting or sizing of paper is done.
The handles of the paper bags are done now.
After that, the sheered and eyelet-punched paper is creased.
Hard pressing is then done, where sheets of paper are stuck together to make the paper bags stronger and thicker.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by XR Central.
Metaverse, a 3D immersive digital reality technique that combines augmented reality (AR), virtual reality (VR), mixed reality (MR), blockchain, and IoT to create a virtual world and collaborate within it. The global metaverse market was valued at $41 billion in 2021. According to ‘Metaverse Market Report 2022’ by Grand View Research, the global metaverse market size is expected to grow to reach $678.8 billion by 2030. Extended reality(XR) are the building blocks of the metaverse. that will help in uplifting the user experience in the metaverse.
XR Central is a metaverse technology based startup that provides innovatively designed solutions for metaverse creation for a diverse array of industries. Read to know about XR Central, its founder, the startup story, growth, and more.
XR Central is a Gurgaon-based metaverse technology startup. It was founded in 2020. XR Central has a vision to democratise extended reality technology and the metaverse. This means empowering businesses and individuals to use the metaverse to solve a diverse group of problems. When they bring new technology to the masses, it always leads to a leap in innovation which benefits and impacts many industries.
XR Central – Industry
The metaverse and XR industries are expanding at a phenomenal pace. There has been a large influx of investment by private and government entities in the field, and the market is projected to grow at a rate of 57.91%. The regions where most growth is projected is the Asia-Pacific region, and they anticipate that products from this region are poised to take the lead in metaverse services globally in the next five years. In the next year or so they want to introduce MetaQube to markets in the Middle East, European, and North American sectors.
XR Central – Founders and Team
Anshul Agarwal – Co-Founder of XR Central
Anshul Agarwal, Co-Founder & Director XR Central, is a mechanical engineer and Master of Business Administration who now spearheads sales, marketing and strategy development for XR Central. He has over a decade’s worth of extensive experience in sales transformation and corporate portfolio management has driven the progression of the XRC and MetaQube brand.
Anshul has a passionate work ethic and has traveled across the globe to liaise with clients. This empowers him to work closely with individual teams to deliver quality solutions. His robust educational background, coupled with experience in the corporate enables him to meet the expansion requisites of XR Central.
Shrey Mishra – Co-Founder of XR Central
The other half of XR Central is Shrey Mishra, Co-Founder & Director XR Central – a computer science engineer who spearheads technology, operations and product development for XR Central. With 12 years of experience in storytelling and finding innovative, technological solutions to complex problems, Shrey has delivered unique concepts and driven innovation.
XR Central extends its services to the corporate and commercial segments in particular, and Shrey plays a critical role in the creativity and implementation of the concept. His flair for perfection and innovation motivates the team to experiment with unique ideas and implement them with the assistance of technological processions like Metaverse, Augmented Reality, Virtual Reality, and Interactive technology.
This passion and synergy between technology and marketing strategy has resulted in the founding of XR Central. They have a flat work structure, which means that they have no hierarchies. Each member of the team is as important as the other and all team members, from interns to engineers, can approach us, the co-founders, without hesitation. They have created an open work environment where team members can brainstorm and experiment without obstacles and deliver the kind of top-notch performance that makes a product truly unique.
Before XR Central the founder ran one of India’s largest platforms for gaming content, Gaming Central. The highly organic and sophisticated participation of the gaming community coupled with the constant output of the gaming industry made us ask ourselves a question: can gaming be used to solve real world problems? And that was the seed which has led Anshul and Shrey to conceptualise, develop and implement their DIY metaverse builder MetaQube.
They ideated and designed with a small team of passionate individuals which is growing every day, and they continue to iterate and innovate even now to ensure that their product reaches a level of quality which puts it far above its competitors.
XR Central – Products and Services
XRC is an XR (AR, VR, MR & WebGL) based interactive tech studio based out of Gurgaon and is founded and led by experienced industry experts Anshul Agarwal and Shrey Mishra.
XRC has been delivering a wide range of interactive and immersive XR solutions that have helped brands elevate customer experiences and brand recall. They specialize in metaverse creation for a diverse array of industries, as well as creating interactive design content using immersive technologies such as virtual and augmented reality (MR, VR and AR).
They are currently developing their flagship product, a powerful, game-engine-based metaverse builder called MetaQube. They provide B2B services and a forthcoming B2C product is in the final stages of development. They have worked with partners like Infosys, HCL, etc. to bring experience centres and immersive experiences to life, and are currently working with a diverse portfolio – from e-sport fan zones to building complex 3D models for training purposes in specialised fields.
Most of these experiences are run on MetaQube, which will be their B2C product. MetaQube will be a no-code world builder, where you can build a digital environment for your friends and family or at scale for thousands of people in a matter of minutes.
XR Central – Challenges Faced
The biggest challenge for them was educating the target audience and educating stakeholders about the possibility of XR. As the age of Web 3.0 arrives, XR technology is seen as the new frontier for experiencing content of all kinds.
But exposure to new technology in enterprise and wider consumer settings is very limited, and explaining and providing PoC, collating ideas, iterating and reiterating, and defining the full scope is a lengthy process which requires repeated starts and stops.
They overcame these challenges by creating their own PoCs and developing material to educate people on these new technologies. This is how they have gained the confidence of leading brands.
XR Central work for clients all over the world from its offices in Gurgaon. Their users come from a very wide selection of industries, from aviation to coating manufacturers, and they empower them to build different experiences which connect them to customers, manufacturers, and their stakeholders.
During their fun work sessions they use MetaQube, their own platform, for effective internal and external collaboration with a unique hook.
XR Central – Recognition and Achievements
They are always in the news, and have received widespread press coverage for many of their projects. For their project with India Art Fair, they were featured in Financial Express, The Print, Outlook, The Hindu, and Business Today. For their collaboration with GIGABYTE and Lucknow Super Giants XR Central was covered in newspapers all over the world. Over a hundred news and media agencies have covered XR Central’s projects, with glowing testimonials from clients.
Anshul and Shrey also write a regular column aimed at de-mystifying the metverse and XR technologies for the wider public for The Sunday Guardian.
XR Central – Future Plans
As well as the Indian subcontinent, they want to provide services to regions in the Middle East and Europe. Their work is multicultural and intuitive and they are sure they will be able to bring that knowledge to develop timeless metaverse products for a diverse set of countries and audiences.
FAQs
What is XR Central?
XR Central is a Gurgaon-based startup focussed towards metaverse creations and using AR/VR for innovative design solutions.
When was XR Central founded?
XR Central was founded in 2020.
Who is the founder of XR Central?
Shrey Mishra and Anshul Agarwal are the co-founders of XR Central.
Is XR Central funded startup?
Yes, XR Central has raised funding of $135K in a Seed Round.
