Zetwerk offers a clear and effective marketplace for purchasing custom manufactured components and services and specialises in enabling end-to-end procurement and supply chain solutions for industrial projects. Zetwerk wants to use technology and data-driven insights to simplify the manufacturing sector’s intricate procurement procedures.
About Zetwerk
Zetwerk is an Indian technology-driven marketplace that links suppliers and consumers in the engineering and manufacturing industries. It was launched in 2018 by Amrit Acharya and Srinath Ramakkrushnan. Zetwerk is a group of more than fifty skilled engineers, product managers, and company executives who are all enthusiastic about designing the manufacturing of the future. They are creating a platform that streamlines manufacturing industry collaboration and procurement. The company has built prosperous companies in the industrial sector over the years and has a thorough understanding of the industry. It is supported by marquee investors, who want to quickly grow our workforce.
Zetwerk’s business model is transactional in nature, meaning that each successful transaction made through its marketplace generates money for the platform in the form of transaction fees. Depending on the amount of the contracts and projects they acquire through Zetwerk’s platform, manufacturers and suppliers may be required to pay fees. Zetwerk might also provide high-end services like project management and quality control, which would increase its sources of income. Because of its dedication to improving cooperation, openness, and effectiveness in the manufacturing supply chain, the company has established itself as a major force in the sector and offers companies searching for premium customised manufacturing solutions a one-stop shop.
Zetwerk Revenue Model | How Zetwerk Makes Money
As discussed earlier, transaction fees from completed transactions are the main source of income for Zetwerk, which bases its business strategy on a transactional paradigm.
Earning through commission: Zetwork majorily earns through commission which it charges depending on the contract value. However, the commission rates vary from 12 to 18%.
Earning through listing fees: In order to further diversify its revenue sources, the company also receives listing fees from suppliers and is about to introduce premium membership services.
Earning through collaborations: The platform’s strategic partnerships are crucial to its success. By collaborating with investors, contractors, manufacturers, and technology companies, Zetwerk has established a strong ecosystem that meets the many demands of the manufacturing industry. By ensuring that no one party is disproportionately affected by market volatility, this cooperative framework promotes adaptability and creativity.
Financials
Zetwerk Financials
FY22
FY23
Operating Revenue
INR 4,961 crore
INR 11,448.6 crore
Total Expenses
INR 5,145 crore
INR 11,712.62 crore
Profit/Loss
Loss of INR 59.76 crore
Loss of INR 108.7 crore
USP of Zetwerk
Zetwerk’s proprietary project management software, ZeTracker and ZISO, is its unique selling point. As a project management tool, ZISO uploads and maintains manufacturing drawings, assigns them to a purchase order, and synchronises them with a production schedule. By streamlining procedures to cut expenses and guarantee excellent project management, automation and data help ZISO plan projects efficiently. Every supplier has a designated project manager who keeps track of and updates the customer on the status of the project using the ZeTracker mobile app.
Strong presence in the manufacturing and supply chain solutions-focused industrial sector.
A cutting-edge platform that improves operational efficiency by bringing companies and manufacturers together.
A strong technological foundation that makes transactions and communication easy.
Seasoned leadership group with extensive knowledge of the sector and a strong spirit of entrepreneurship.
Zetwerk Weakness
Reliance on a small number of important markets, which could restrict revenue streams and diversification.
Comparatively little brand awareness in contrast to well-known companies like General Electric and Siemens.
Possible difficulties in expanding operations to satisfy rising demand.
Vulnerability to changes in international supply chains that could impact delivery schedules.
Zetwerk Opportunities
More business opportunities are being created by the industrial sector’s growing demand for digital transformation.
Expansion into foreign markets like Southeast Asia and Africa, where manufacturing is growing.
Zetwerk’s emphasis on supply chain process optimisation puts it in a strong position to draw in investors and raise capital for growth initiatives.
Possibility of collaborating with IT companies to develop new product lines.
Zetwerk Threats
The industrial space is characterised by cutthroat rivalry from both long-standing companies and upstarts.
Supply chains may be disrupted by geopolitical tensions and economic concerns.
The business may not be able to keep up with the rapid advancements in technology.
Conclusion
Even though Zetwerk is currently on an extremely outstanding trajectory, the journey is far from finished. With substantial financial interest indicating expansive potential, the company is well-positioned for scaling. To maintain Zetwerk’s competitive edge, it will be essential to diversify service offerings, expand worldwide, and keep using technology. In a larger sense, Zetwerk is a prime example of how data and technology can revolutionise established industries, resulting in observable gains in productivity, openness, and overall operational performance. It’s evident from following this company’s development that Zetwerk is actively designing the manufacturing of the future rather than only meeting the demands of the present.
FAQs
What is Zetwerk?
Zetwerk is an Indian technology-driven marketplace that links suppliers and consumers in the engineering and manufacturing industries.
Who founded Zetwerk?
Zetwerk was launched in 2018 by Amrit Acharya and Srinath Ramakkrushnan.
What is Zetwerk’s USP?
Zetwerk’s proprietary project management software, ZeTracker and ZISO, is its unique selling point. As a project management tool, ZISO uploads and maintains manufacturing drawings, assigns them to a purchase order, and synchronises them with a production schedule.
Red Bull GmbH is an Austrian company that was launched in 1987. It traces its origin back to a similar drink that was called Krating Daeng. Krating Daeng was introduced in Thailand in 1976 by pharmacist Chaleo Yoovidhya.
He pitched the product as an energy booster that increased productivity and marketed it toward laborers and students. His advertising campaign included sponsoring various Thai sporting events like Muay Thai.
Dietrick Mateschitz was just another traveler on business in Thailand when he purchased and drank Krating Daeng. He claims it cured his jet lag. He sought to meet Yoovidhya and create a business partnership with him.
Together, they formulated a product that would suit the taste of Westerners, and Red Bull GmbH was born. They founded the company in 1984 in Salzburg, Austria.
Mateschitz, while branding the drink, used the English meaning of the Thai name. Daeng means Red and Krating is a large species of wild bovine native to the Indian subcontinent (known in English as a gaur or Indian bison).
It was in August of 1987 that the first can of Red Bull, as we know it today, was sold in Austria. It was re-positioned as a trendy and premium drink and introduced at a ski resort in Austria. Krating Daeng remained available as a lower-cost product.
The company continued to expand and the drink entered the United Kingdom and Germany markets in 1994, the United States in 1997 and the Middle East in 2000 and continues to grow.
Over the years, RedBull has added many variations to the energy drink, based on the same formula but offering different flavors and colors. It began with a sugar-free version in 2003 called RedBull Sugarfree and added variants like RedBull Zero, RedBull Total Zero, and RedBull Energy Shot.
In 2013, RedBull began offering different flavors with the launch of RedBull Editions. Initially available in cranberry, lime, and blueberry, it added various other flavors, some of which are available only during certain seasons or in specific countries.
In 2018, Organics by RedBull was launched with a line of organic sodas in flavors of bitter lemon, ginger ale, tonic water, and a new version of a cola called Simply Cola.
Red Bull is one of the most popular beverage brands that are famous for its drink
and its tagline “Red Bull gives you Wiiings”. But this tagline cost Red Bull nearly 13 million. Let’s understand the complete story behind Red Bull’s 3 i’es.
It was in 1997 that RedBull commercials were released bearing its now famous slogan âRedBull Gives you Wiiingsâ. Red Bull advertisement inspires energy and adventure.
Being advertised as an energy drink worldwide, RedBull has used extreme sports as its advertising vehicle of choice. It began sponsoring athletes in 1989, focusing on sports like Formula One racing and extreme sports like windsurfing and hang gliding.
Red Bull Motorsports
It later expanded into sponsoring mainstream sports like MotoGP, Mountain Biking, Skateboarding, Kayaking, Rowing, Cliff Diving, Basketball, and Soccer. It has also held sponsorships in Esports.
The Famous Red Bull Slogan
âRed Bull Gives you Wingsâ became that slogan that gained significant ground for the company through its effective marketing strategy. It added an air of mystery to a drink that is a carbonated drink containing sugar, caffeine, and other ingredients that add flavor and color.
Red Bull Slogan
This genius slogan boosted the energy drink into a global phenomenon as a vitalizing energy booster drink. The idea of the drink âgiving you wingsâ was metaphorical and illustrated the energy boost that an individual would receive after consumption. However, there is no saying when something can be misconstrued. And that is exactly what happened in the case of Red Bull.
The Court Case Citing False Marketing by Red Bull
After twenty years of seeing the circle of success, much of it based on its clever slogan, RedBull fell prey to its ingenuity and gallantry. How the genius of the marketing slogan âRedBull gives you Wingsâ was called into question is a 13-million-dollar story.
A US citizen named Benjamin Carethers questioned â âWhy doesnât RedBull give me wings?â He sued the company for âfalse advertising. He claimed that after 10 years of drinking Red Bull, he had neither grown wings nor had seen any athletic or intellectual enhancement in his performance.
His claim read – âEven though there is a lack of genuine scientific support for a claim that Red Bull branded energy drinks provide any more benefit to a consumer than a cup of coffee, the Red Bull defendants persistently and pervasively market their product as a superior source of âenergyâ worthy of a premium price over a cup of coffee or other sources of caffeine.â
As per the consumer court documents that were filed in the New York Federal Court, the officials of the energy drink chose to settle with Benjamin Carethers. Red Bull also agreed to pay cash up to $10 to all the people who purchased Red Bull in the last decade, instead of cash customers also had an option to go with two Red Bull products worth $15. The complete payout was capped at no more than $13 million.
Why Did Red Bull Add Extra âiiâ in Its Tagline?
Red Bull had learned a hard lesson. They also realized that their marketing slogan was catchy and the tagline had gathered global attention that was driving their sales.
So, in a bid to keep their tagline intact, they added two âiiâs to their word wings. And that is how the slogan became â âRedBull Gives you Wiiingsâ. That is how a successful business works.
Red Bull continues to grow and expand. It now owns football teams with clubs in Austria, Germany, the United States, and Brazil. The company enlisted Adrian Newey in 2010 to design a prototype racing car called the RedBull X2010. This was for the video game Gran Turismo 5. Earlier this year, Red Bull announced the full production of a hypercar called RB17, also designed by Adrian Newey.
FAQs
Who created the slogan Red Bull gives you wings?
Dietrich Mateschitz and his team created the popular tagline in the 1980s.
What is the story behind Red Bull’s slogan?
Red Bull was sued for false advertising by a customer Benjamin Carethers. Red Bull settled the case and had to pay around $13 million.
Why does Red Bull spell wings with 3 I? What is the meaning of wiiings?
Red Bull spells “wiiings” with three ‘i’s in its slogan “Red Bull gives you wiiings” as a creative and playful branding strategy. It grabs attention, makes the slogan more memorable, and avoids legal claims about literal promises, ensuring itâs seen as a metaphor for energy and performance rather than a factual statement.
What is Red Bull Gives You Wings new slogan?
“Red Bull Gives You Wings. Wiiings for Every Taste”, is the new slogan of Red Bull.
What is Red Bull tagline case?
Red Bull faced a lawsuit in 2013 claiming its slogan, “gives you wings,” was misleading. It settled in 2014 for $13 million without admitting fault, offering refunds or free products.
Why did Red Bull change to wiiings?
Red Bull changed “wings” to “wiiings” to make the slogan playful and memorable while avoiding legal issues by clarifying it as a metaphor, not a literal claim.
Red Bull did not change its slogan or tagline but slightly modified the spelling to “Red Bull gives you wiiings” to make it playful and avoid legal issues after a 2014 lawsuit claimed the slogan was misleading.
The story of Gujarati motel owners in the United States is an inspiring example of hard work, smart business, and strong community support. It shows how they started small and grew into a big part of the hotel industry, making a huge impact on the American economy.
Asian American Hotel Owners Association (AAHOA), founded in 1989 represents over 36,000 hotels, employs more than 1.1 million people, and adds over 1.5% to the U.S. economy. Its members spend over $50 billion every year and own properties worth $1 trillion.
The surname Patel is synonymous with motels so much that there is a light-hearted joke prevalent in America that the Patels have their own âPatel Motel Cartelâ. Now let’s delve into the origins of how it all began – the story of Gujarati motels in the United States.
Kanjibhai Desai: The King of the Motel Business
It all began in 1942 when a man named Kanjibhai Manchhu Desai left Gujarat in search of new opportunities.
He was joined by two Gujarati farmworkers, and they took over a 32-room hotel in Sacramento, California, after the propertyâs Japanese-American owner was forced to report to a World War II internment camp.
Soon Desai moved to the Hotel Goldfield in San Francisco, where he also enlisted the help of other immigrants from Gujarat. The Immigrant and Nationality Act of 1965 also acted as a catalyst for this process, as now more Gujaratis were allowed to pursue their dreams of settling in the United States.
Other Gujaratis also followed, not only from India but also from other parts of the world. Most of them moved in as refugees from Uganda when their dictator Idi Amin ordered to expel of around 55,000 Indians who were living there, and a majority of them were Gujaratis.
They soon found a new home in the various districts of America. Some Gujaratis also came from other parts of the world, like the United Kingdom, Pakistan, etc.
By the 1980s, the second-generation kids of these immigrants started expanding the frontiers of their parentâs businesses. For example, they acquired furthermore motels to build their chain of motels across various states.
They made further renovations and this led to even more revenue. By 2007, they owned around 21000 of the 52000, a staggering 42% of the US hospitality market.
Desai’s contributions to the motel industry and the Indian American community have been widely recognized. In 2003, he was inducted into the American Hotel & Lodging Association’s Hall of Fame, and in 2006, he was posthumously awarded the Ellis Island Medal of Honor for his contributions to the hospitality industry and the country as a whole.
Gujarati-Owned Hotels in the USA
Gujaratis are a prominent ethnic group in the Indian-American community and have a strong presence in the motel industry. The Gujarati-American Hotel and Motel Association (GAHMA) represents a significant number of Gujarati hotels and motels in the United States.
Key Factors Behind the Rise of Gujaratis in the Motel Business in the United States
Strong Community and Family to Rely On
The Gujarati Patel community shares a strong bond, be it with their friends, family members, or anyone within their community. This can be symbolized when Kanjibhai Desai encouraged his community to enter the hospitality business with the quotation: âIf you are a Patel, lease a hotel.â
It is widely reported that they trusted a fellow community member so much that they would give them when needed a âhandshake loanâ. These types of loans do not involve any sort of collateral, no strict payment schedule in the form of installments, or anything they can pay whenever they want.
They also took the help of their partner and children, to help them run the daily operations, and if these were not enough, they also called their distant relatives from India to aid them for free. This was different, unlike say other American owners who had to pay out a significant portion of their revenue in the form of wages to employees. Thus, the Gujarati motel owners made the motel their own home.
This statement by Gary Patel, a small motel owner in Michigan, explains the gist of the whole paragraph,
âAbout 40 percent of the Patels know each other, through friends or family, so when you buy your first property, there is someone to help you with the down payment, someone to be a partner.â
Strong Work Ethic
Gujarati motel owners strongly believe in âAthithi Devo Bhavaâ as in Guest is God. So, these Gujarati motel owners would work hard to ensure their customers faced no issues during their stay and if they somehow had, it, such as say the pipes being clogged, or say any other basic issue, they would rather learn how to fix that issue on their own, instead of hiring a third-party vendor to cut costs.
They were ready to do the dirty, unglamorous work to attain their goals as they saw the long-term benefits.
Strong Business Acumen
Gujaratis have a strong business acumen that is they always look for better opportunities and capitalize on the right moment.
This can be explained by this statement of Vinay Patel, a second-generation immigrant who currently owns a full-service Holiday Inn in Sterling, Washington where he said that his parents built one hotel and sold it, then built another and sold it, and they repeated this chain of buying motels at a low cost and selling them at a high cost.
The Challenges Gujaratis and Patel Owners Had To Face
One of the biggest obstacles they had to face was racism and xenophobia. They were not accepted in their society and had to face taunts about how they were of an âinferior raceâ and so on.
White motel owners, especially in the rural parts of America, had to put up signs with âAmerican Ownerâ and so on. But they managed to overcome all of these through their hard work and determination.
Running motels has become more expensive due to higher costs for maintenance, utilities, and staff. Patel hotel owners face labor shortages, making it hard to find and keep skilled workers. This has increased staff duties and pushed owners to find new ways to hire and manage workers.
Patel hotel owners must manage their online presence through travel websites and reviews. They need to keep good ratings, check reviews, and update their profiles, which takes time but is important.
They made a lot of efforts to get along with the local community, they contributed a lot of their profits to the educational institutions, hospitals, etc, which won them a lot of faith. Now the second-generation and beyond immigrants are integrated with their society as a whole.
The Patel Hotel Owners: Who Owns the Most Hotels in the USA?
The Patels first entered the hotel industry in the 1940s and 1950s, with many family members immigrating to the United States to pursue business opportunities. Over time, they developed a reputation for providing affordable and comfortable accommodations to travelers, particularly those on a budget.
The Patels are not a single entity, but rather a large extended family with many branches and business operations. However, they have a number of traits and strategies in common that have contributed to their success in the hotel industry.
For example, they often purchase and operate lower-cost hotel brands, such as Motel 6 and Super 8, and tend to focus on owning and operating multiple properties near one another.
Overall, the Patel family’s success in the hotel industry has made them an important part of the business landscape in the United States, particularly in the budget hotel segment. Let’s explore the incredible journey of Chan Patel and his inspiring success story.
The story of Chandrakant(Chan) Patel is a good case study that enunciates all the major reasons why Gujarati motel owners have succeeded. He came to the United States in the 1960s for his higher studies and soon got a job as an executive at the now-defunct domestic airline Braniff International. He also married and had four children and life was going smooth.
In 1976, he bought Alamo Plaza Hotel Courts Dallas, in addition to his job as an executive. He was the first Indian hotel owner in Dallas. During the lunch break of his job, he would man the front desk during that time and give a helping hand to his wife to do laundry for the customers and other odd jobs.
Chandrakant (Chan) Patel – First Indian Hotel Owner in Dallas
Soon he found it tough to maintain both tasks, and while he had to sacrifice his personal life, he also realized the benefits he was having. He saved a lot of money in terms of rent, utilities, and phone bills because he was staying on his property.
He never felt bad doing small jobs because of the various gains he made financially. He wanted to focus on getting more revenue, so he took the bold risk of quitting his stable job as an airline executive.
Soon, his income doubled from the 35,000 dollars he was earning from the airline job and the motel business in USA grew exponentially like he had 13 motels under him by 1987 from the one he had eleven years ago.
After that, he passed this business to his sons and began a new venture of starting a bank, which he did by the name of State Bank of Texas, which was to help immigrants get affordable loans for their new businesses. This bank also became a successful venture and by 2018, it was seen as one of the top 100 community banks with assets less than 3 billion dollars in America.
Chandrakant Patel is thus a success story who personifies all the reasons for how Gujaratis have succeeded.
In Popular Culture
They have been depicted in various forms of media. The 1991 Denzel Washington-starrer âMississippi Masalaâ is about how a Gujarati couple and their daughter had to leave Uganda and how they assimilate with African-American culture when they decide to settle in Greenwood, Mississippi as refugees.
Life Behind The Lobby Book
Noted author Pawan Dhingra has also published a book titled: “Life Behind the Lobby: Indian American Motel Owners and the American Dreamâ in which he focuses on all these details about the Patel Motel Cartel in detail.
Surat to San Francisco
Indian American author Mahendra K. Doshi highlighted the important role of Patels in the U.S. hotel and motel industry, tracing their roots to Gujarat. His book “Surat to San Francisco” explored their inspiring journey, documenting how this community rose to shape the American hospitality sector.
Patel Motel Owners: Future
Future Outlook for Patel Motel Owners:
Sustainability Efforts: Patel owned hotels are expected to adopt eco-friendly practices as environmental concerns grow. This may include improving energy efficiency, reducing waste, and saving water to meet new standards.
Global Growth and Partnerships: Some Patel hotel owners may expand their businesses beyond the U.S. into new markets and tourist spots. They may also partner with local businesses and attractions to offer unique packages, making their hotels more appealing to travelers.
Better Loyalty Programs and Services: To meet trends like remote work and digital nomads, Patel Motels may offer long-stay packages and work-from-hotel services. They will also improve loyalty programs with rewards to keep customers coming back.
Conclusion
In conclusion, the motel business in USA is a dynamic and rapidly growing industry, and the Gujarati community has made a significant impact with their entrepreneurial spirit. The Patel Hotel Owners are a prime example of this success, with an impressive portfolio of hotels that have made their mark on the industry.
Despite challenges, their continued growth and exploration of new business opportunities serve as a motivation to others in the industry. The Patel family’s success is a testament to the power of hard work, dedication, and a willingness to adapt and innovate in an ever-changing business landscape.
FAQs
How many US hotels are owned by Indians?
One out of two US motels or hotel businesses is owned by Indian Americans.
Who owns most hotels in USA?
Wyndham Hotel Group owns the most hotels in the USA, the company has over 9000 hotels in over 95 countries, with roughly 893,000 rooms.
How many hotels are owned by Patels in USA?
Asian American Hotel Owners Association (AAHOA), founded in 1989 represents over 36,000 hotels, employs more than 1.1 million people, and adds over 1.5% to the U.S. economy. Its members spend over $50 billion every year and own properties worth $1 trillion.
Which is the first Indian owned hotel in USA?
Kanjibhai Manchhu Desai is believed to be the first Indian to own a motel in the U.S. He bought the Goldfield Hotel in San Francisco in 1937.
The Home Depot was founded on 6th February 1978 by co-founders Bernard Marcus, Arthur Blank, Ron Brill, Pat Farrah, and Ken Langone. In the 46 years since its inception, the company has grown to operate big box-format stores across the United States of America including the District of Columbia, Guam, Puerto Rico, and the US Virgin Islands, 10 provinces of Canada, 32 states of Mexico and the City of Mexico. Home Depot also owns the MRO company Interline Brands, which boasts 70 distribution centers across the US. By the year 2023, Home Depot boasted 471,600 employees and a revenue of more than USD 157.40 billion.
The Home Depot Highlights
Company Name
The Home Depot
Headquarters
Atlanta, Georgia, United States
Sector
Home Improvement Retailer, Consumer Discretionary
Founders
Bernard Marcus, Arthur Blank, Ron Brill, Pat Farrah, and Ken Langone
The Home Depot was built with the idea of home-improvement superstores that were larger than any of their competitors. The first two stores of The Home Depot opened on 22nd June 1979 in metro Atlanta, followed by stores opening in Hollywood and Fort Lauderdale in 1981. Three months later, by September of the same year, it got listed on NASDAQ and was able to raise USD 4.093 million.
By the year 1984, The Home Depot had grown and was operating in 19 cities, clocking sales of more than USD 256 million, and had joined the New York Stock Exchange as well. In the same year, it acquired Bowater Home Centre for a total of USD 40 million. However, this quick rate of expansion and growth landed the company into troubled waters financially as it struggled with its earnings, which dropped by 42%, and debt rose to USD 200 million, causing a reduction in its stock price as well.
The Home Depot management took swift action and reduced their store expansion to only 10 outlets in 1986 and offered 2.99 million shares at USD 17, which helped the company restructure its debts. By 1989, The Home Depot surpassed Loweâs to become the largest home improvement store in the United States of America. A few years later, in 1994, The Home Depot acquired the Canadian hardware chain Aikenheadâs Hardware for a total of USD 150 million. With this, all the Aikenheadâs Hardware stores were re-branded as The Home Depot. The Home Depot was operating 350 stores and clocking sales worth USD 10 billion by 1995.
In 1997, The Home Depot acquired Maintenance Warehouse, a maintenance and repair supplies company, for USD 245 million. This acquisition was a strategic move by The Home Depot as the Maintenance Warehouse was a leading direct-mail marketer of maintenance, repair, and operation supplies. It increased market penetration for The Home Depot.
In 1999, the Atlanta-based company Apex Supply, a wholesale distributor of plumbing, HVAC, industrial pipes, and fittings, was acquired by The Home Depot and re-branded in 2004 as âThe Home Depot Supplyâ.
A large plumbing distributor focusing on special order fulfilment called Your Other Warehouse was the next to be acquired by The Home Depot in 2001. A year later, in 2002, The Home Depot entered the Mexican market with the acquisition of the home improvement chain Del Norte. It also began constructing stores in Mexicali and Tijuana. In a bid to integrate professional landscapers and start a plant nursery retail chain, it launched The Home Depot Landscape Supply. Unfortunately, The Home Depot Landscape Supply stores were closed in 2007, a mere five years after their launch.
The company, however, was an unstoppable force as The Home Depot Direct launched its online home-furnishings store in 2005, following it up with its online lighting store âPaces Trading Companyâ. Strengthening its brand further, it acquired the Home Decorators Collection in 2006 and placed it as an additional brand under its Home Depot Direct Division.
In the same year, The Home Depot also acquired Hughes Supply for USD 3.2 billion. Hughes Supply was the largest home retailer in the United States, and the acquisition was integral in serving B2B customers.
In 2015, it acquired Interline Brands and its management for a total of USD 1.6 billion. A year later, in 2017, it acquired the online presence of âThe Company Storeâ.
Internationally, The Home Depot has expanded its footprint to Canada with 22 stores and Mexico with 126 stores. Its brief foray into South America in 1993 only lasted for one year when its only store in Peru shut down due to low sales and weak promotion. Its entry into China in 2006 through the acquisition of the Chinese home improvement retailer The Home Way was also not highly successful, and by September 2012, it shut all of its stores within the country.
Some of the Notable Acquisitions of the Home Depot Since Its Inception
The Home Depotâs success can be attributed to strategic acquisitions and a concentrated effort to grow into one category. As the e-commerce business has grown, The Home Depot has strategized and acquired companies that have helped them to grow in this segment as well.
Of all of the major retail sectors, the home improvement sector is one of the most difficult to shop. Hence, shopping in stores makes this experience easy for consumers as they have easy access to expert advice. They can also physically examine the products, which is an advantage not available in online shopping. Additionally, the delay in delivery in online shopping also makes it disadvantageous as home improvement products are mostly an immediate need.
This is where The Home Depot has succeeded and is an exception to what is a general rule. Its e-commerce business accounts for almost 6.4% of the companyâs total revenue. There are a couple of reasons that have contributed to The Home Depotâs success.
Omnichannel Strategy Leveraging Online and Offline Stores
An effective omnichannel strategy leverages both online and offline stores for maximum impact. The company has used its 1980 shops across the US as both warehouses for online stock and points of collection for online orders. This has resulted in considerable systems overhaul but the strategy has worked to the companyâs advantage. Almost 43% of all online orders are collected in-store and 90% are returned in-store. These stores also play a significant role in driving online sales for the company.
Ease of Online Shopping
A comprehensive level of detail is available for every product sold online at The Home Depot. This information is in-depth covering a basic bullet-point product description to a comprehensive review and a detailed specification table. There are video tutorials available on DIY projects as well as ideas on home decoration and design. The website is an immersive experience supporting all stages of purchase, from ideating to the final checkout.
Excellent Customer Service
Home Depot’s dedication to offering quality products at competitive prices has resulted in increased customer satisfaction, loyalty, and profitability. Home Depot has a vast selection of products, including tools, appliances, hardware, and building materials, which are all backed by expert advice and support from their knowledgeable staff. Whether you are a professional contractor or a DIY enthusiast, Home Depot has everything you need to complete your home improvement projects successfully. With a focus on customer satisfaction, Home Depot continues to be a trusted source for all your home improvement needs.
The Home Depot – Challenges
Annual Revenue of The Home Depot
Home Depot faces challenges, including a 3.3% drop in sales, higher operating expenses (up to 18.3% of sales), and lower net profit margins (9.7% vs. 10.5% 2023). Fewer customers are taking on big projects due to high interest rates and economic uncertainty. Despite being priced below its fair value, its high P/E ratio (26.4x vs. 15.7x industry average) makes it less attractive to value investors.
Conclusion
The Home Depot has a deep understanding of the customer psyche and has shown expertise in the category it specializes in that is difficult to replicate by any general retailer. It has succeeded in integrating systems to create a seamless shopping experience for its customers both online and offline. It is no wonder that it has created a niche for itself and carved out a place on the global stage.
How Home Depot Became the Worldâs Largest Home-Improvement Retailer
FAQs
What types of products does The Home Depot sell?
The Home Depot sells a variety of products related to home improvement, including building materials, tools, hardware, plumbing and electrical supplies, appliances, flooring, paint, and outdoor equipment.
Does The Home Depot offer any rewards or loyalty programs for frequent shoppers?
Yes, The Home Depot offers a loyalty program called “Home Depot Pro Xtra” for its frequent shoppers.
Does The Home Depot offer installation services for products like appliances or flooring?
Yes, The Home Depot offers installation services for many of the products they sell, including appliances and flooring.
What type of people shop at Home Depot?
The store serves two core groups of customers: DIY and pro segments. DIY shoppers turn to the store for supplies to complete their projects, while pros are typically contractors and tradesmen, like electricians, plumbers, and painters.
Why is Home Depot successful?
Home Depot is successful due to its wide product range, strong customer service, efficient supply chain, and focus on DIY and professional customers.
How did Home Depot start?
Home Depot started in 1978, founded by Bernie Marcus and Arthur Blank, with a vision to offer a one-stop shop for home improvement products at affordable prices.
Who are the competitors of The Home Depot?
The main competitors of The Home Depot include Menart, Walmart, Ace Hardware, Lowe’s, and Target.
What time does Home Depot close?
You can check the Home Depot website or call your local store to confirm the exact closing time.
CafĂŠ Coffee Day, popularly known as CCD, is not only a coffeehouse for the individuals of India but has become Indiaâs favorite place for coffee and conversations today. Founded in 1996, the Bengaluru-based Indian multinational chain of coffeehouses has emerged to be one of the favorite haunts of the millennial and the Gen Z group within a short time.
CCD had served over 1.6 billion cups of coffee annually in six countries when it discovered that it was on the brink of bankruptcy. This is why it decided to shut down its operations outside India. It was present in a list of countries â Austria, Czech Republic, Malaysia, Nepal, and Egypt before this decision.
The first CafĂŠ Coffee Day outlet was set up by CCD owner V. G. Siddhartha on July 11, 1996, in Bangalore, Karnataka, with the slogan’ A big deal can occur over some espresso’.
CafĂŠ Coffee Day quickly extended through the urban areas in India, including new stores with more than 2000 bistros opened all over the nation by 2016. In a range of 20 years, CCD has blended its approach to progress, with the fame and cherish it has reaped.
The history of CafĂŠ Coffee Day lies in its origins as a pioneering Indian coffee chain, founded in 1996 by V.G. Siddhartha, with the vision of bringing coffee culture to India and making it a popular hangout spot for the youth. CafĂŠ Coffee Day Global Limited Company is a Chikkamagaluru-based business that produces coffee on its very own land of 20,000 acres. It is the biggest maker of arabica beans in Asia, sent out to different nations including the U.S., Europe, and Japan.
A CafĂŠ Coffee Day outlet in Bengaluru
V. G. Siddhartha began the CafĂŠ chain in 1996 when he started Coffee Day Global, which is the parent of the Coffee Day chain. The first outlet was opened on July 11, 1996, in Bangalore, Karnataka.
Soon after the foundation of CCD Coffee, the biggest challenge faced by CafĂŠ Coffee was to make a revolutionary change in Indian culture where the majority of the population preferred drinking tea rather than coffee.
CCD Founder – V. G. Siddhartha along with his wife Malavika
CCD quickly extended to different urban cities in India, with more than 1000 bistros opened in the country by 2011. In 2010, it was declared that a consortium driven by Kohlberg Kravis Roberts would invest INR 10 billion in Coffee Day resorts which are owned by CCD. It was during the same time the brand changed its logo to the present logo that is used by the company to feature the chain as a spot or place to talk.
Cafe Coffee Day Logo
This was finished with real changes in the format of the stores, including the expansion of parlors a complete redo of the interiors, and, above all, its slogan âA lot can happen over coffee.â The organization is vertically incorporated to cut expenses: from owning the plantations to becoming the coffee, preparing the espresso machines, and making the furniture for the outlets.
CCD Case Study
How CCD Started the Journey?
CCD started its journey with the incorporation of its parent Coffee Day Global Limited Company in 1996 by V.G. Siddhartha. It was on July 11, 1996, when the first CCD outlet was set up at Brigade Road, Bangalore, Karnataka.
Siddhartha did his Master’s in Economics from Mangalore University and had an enthusiasm for innovation. VG Siddhartha dived deep into the stock market in his early career. He had worked for JM Financial and Investment Consultancy in Mumbai when he was just 24 years of age. Veerappa Gangaiah Siddhartha Hegde acted there as a Management Trainee/Intern in portfolio Management and Securities Trading on the Indian Stock Market under Vice-Chairman Mahendra Kampani.
However, after completing his 2 years of work anniversary with JM Financial Limited, VG Siddhartha had to return to Bangalore when he received the capital from his father to start a business of his choice.
VG Siddhartha started by buying a stock market card for INR 30,000, and a company called Sivan Securities, which was later renamed Way2wealth Securities Ltd. The venture capital division of the company came to be known as Global Technology Ventures (GTV).
Siddhartha emerged as a full-time proprietary investor in the stock market in 1985. Furthermore, he also became the owner of 10,000 acres of coffee farms by then.
“When coffee trading was liberalised in the â90s, I doubled the money I had invested in the plantations within a year,” said VG Siddhartha.
It was then that the Amalgamated Bean Coffee Trading Company Ltd (ABCTCL), a company that focused on coffee exports, was born in 1993.
Siddhartha’s plantations began to produce 3,000 tonnes of coffee, and with the help of ABCTCL, he traded over 20,000 tonnes. This way, in around two years, the company became the second-largest exporter from India.
As soon as its first coffee outlet or CCD store was set up on Bangaloreâs crowded Brigade Road, it began to start a new journey.
The company soon expanded far and wide with its revolutionary concept, which allowed the millennials to sit and talk while sipping on their favorite beverage.
CCD is India’s largest coffee chain to date and is owned by Coffee Day Global, a subsidiary of Coffee Day Enterprises.
CCD First Outlet opened in Bangalore in 1996
He was inspired by the proprietors of the “driving espresso brand in Germany, â Tchibo”. This motivation gave Siddhartha a dream of an alternate world generally speaking and opened his eyes. It likewise gave a heavenly idea. With that thought, cup by cup he made his billion-dollar domain.
The company owned around 1,700 cafes, 48,000+ vending machines, 532 kiosks, and more than 403 ground coffee-selling outlets. The annual turnover of Coffee Day Enterprises was worth INR 4,264 crore, as per a Moneycontrol report of 2019.
CafĂŠ Coffee Day had accumulated a total debt of around INR 6,550 crore, as was reported in March 2019.
The coffee price hit a 13-year low in the international market, which also dragged the Indian prices when the Indian coffee exports were down by 10 %. To combat this debt, Siddhartha had to sell his entire 20.32% stake in the Bengaluru-headquartered IT services firm, Mindtree to the engineering major, L&T for around INR 3,200 crore. He was the largest shareholder in Mindtree and exited the company after remaining invested for close to two decades.
The mounting debts were just unsettling not only for the business but for Siddhartha as well. Even with the sale of his stakes, going ahead turned out to be tough because the working capital requirements could not be met.
All these led Siddhartha to strike a deal with the global beverage maker Coca-Cola for an equity sale in the flagship CafĂŠ Coffee Day (CCD) at an enterprise valuation of around INR 10,000 crore. Besides, Blackstone was also reportedly in talks with the company to buy a majority stake in the real estate venture of the founder, known as Tanglin Developments, for around INR 2,800 crore.
VG Siddhartha slowly started to come under the radar of the Income Tax Department, which first raided the premises of the CafĂŠ Coffee Day owner in September 2017. They discovered around INR 650 crore of concealed income from the documents seized when they concluded the search and seizure operations.
The income tax raids were also eventually conducted at 20+ locations, including Mumbai, Bengaluru, Chennai, and Chikmagalur, by the senior officers of the Income Tax Department of Karnataka and Goa regions.
The Missing Founder of CCD and his Death
Siddhartha had been found missing since July 29, 2019, and this news of the missing MD was further confirmed by Coffee Day Enterprises.
Siddhartha had been found missing since July 29, 2019, and this news of the missing MD was further confirmed by Coffee Day Enterprises. Siddhartha had allegedly told his driver that he would be going for a walk near the bridge and asked him to wait at a distance on the 29th of July 2019. The driver lodged a missing complaint with the police after waiting for two long hours for his return. A fisher claimed that he saw someone jumping off the bridge, but it was only allegedly true until two days later when his body was found in the Nethravathi River backwaters.
The CafĂŠ Coffee Day boss VG Siddhartha had supposedly left a letter where he expressed his unhappiness over not creating “the right profitable business”. Besides, he also alleged that a senior income tax officer allegedly harassed him.
“I have failed to create the right profitable business model despite my best efforts. I would like to say I gave it my all. I am very sorry to let down all the people that put their trust in me. I fought for a long time, but today I gave up as I could not take any more pressure.”
“I could not take any more pressure from one of the private equity partners forcing me to buy back shares, a transaction I had partially completed six months ago by borrowing a large sum of money from a friend. Tremendous pressure from other lenders led to me succumbing to the situation. There was a lot of harassment from the previous DG income tax in the form of attaching our shares on two separate occasions to block our Mindtree deal and then taking the position of our Coffee Day shares… This was very unfair and has led to a serious liquidity crunch,” goes the last letter from the CCD chief.
In September 2019, the organization named reviewing firm Ernst and Young to examine their books of records. They also asked the inspector to investigate the conditions of the last letter composed by Siddhartha and the focus he put on it.
Without leaving much room for speculation regarding the company leadership, Malavika Hegde, the widow of Siddhartha, addressed all realities and showed radical honesty by taking charge of the sinking ship in December 2020. She is the daughter of the former Chief Minister of Kerala SM Krishna. She has a degree in engineering and has been associated with the coffee business since 2008. She was appointed as a non-executive director of the company in 2013.
Malvika took office at the most unprecedented time, burdened with the multiple responsibilities to take the company out of the debt mountain of whooping INR 7000 crore, make the company profitable, and retain the trust of her employees.
CCD has adopted a very effective business strategy, which is compartmentalized below.
Innovation and Expansion
The humongous amount of sustenance and refreshments made CCD possible. Besides, the ambitious moves of CCD and its rapid expansion into level 2 urban communities of India and other remote areas were some triumphant techniques that encouraged CCD to be on the fronts of its rivals like Starbucks and Barista.
Its different auxiliaries like Coffee Day Fresh ‘n’ Ground, Coffee Day Square, Coffee Day Resorts, Coffee Day Beverages, and so forth have helped the organization to satisfy the client’s needs and stay ahead simultaneously.
Also, CCDâs regular involvement on Twitter, Facebook, and Instagram further engaged its customers. CafĂŠ Coffee Day also brought in the character, Beano, to connect with the purchasers in 2016.
Strategy of Distribution
In 2020, there were 1,752 CCD outlets crosswise over 29 states of India. CafĂŠ Coffee Day has likewise extended outside India with its outlets in Austria (Vienna), the Czech Republic, Dubai, Malaysia, and Cairo, Egypt. The Indian sorted-out division has the potential for around 5,000 bistros, yet less than 1,000 bistros exist, as of now.
S.No.
Elements
Illustration
1
People
17000+ employees, 20 in R&D, 70 in HR
2
Technology
The latest technology in a coffee plantation, Curing, roasting, and Probat roasting machines
3
Channels
Cafe, Lounge, Square
4
Value Proposition
Identifying target customers, defining the benefits, and providing the best value to satisfy
5
Profit Formula
Financial sustainability of the firm in long run basis
6
CSR
Provide free education and training to villagers and offer them jobs
Difference In Concoction
These are some prominent moves that made CCD stand out from its peers and rivals:
Past nourishment, the emphasis is on getting the experience right. CCD propelled its application to follow shopper conduct, customize offers and advancements, empower cashless exchanges through implicit wallets, and fabricate unwaveringly.
In 2016, CCD partnered with Freecharge to empower cashless exchanges at the outlets, where the clients could utilize their portable numbers to pay and finish the exchange in under 10 seconds. Be that as it may, Harminder Sahni, author, and MD Wazir Advisors, consider these as strategic contributions.
To further lift involvement, CCD started CafĂŠ Concerts in 2016 with attention to live gigs in Mumbai, Delhi, Pune, and Bengaluru. Cafe concerts were unique at the time when it was introduced by CCD and played a big hand in hooking the young crowd.
The chief components influencing rivalry in the espresso retail area include evaluating, item/administration quality, brand recognition, taste, and item assortment.
To separate itself from rivalry, CCD has manufactured its retail procedure on 3As:
Affordability: CCD ensures that it attracts every kind of customer â be it a school/college student or an office goer, at an affordable price.
Accessibility: The goal of the brand was to ensure that the cafes should be within arm’s reach. CCD believes in serving people across the country by providing the same experience everywhere.
Acceptability: CCD ensures that consumers should buy and drink their product without compromising on taste. The strategy was to bring people together to relax and unwind. The company further encouraged its customers with its catchy tagline that says “Let us catch up on CCD” which every Indian must have heard at one point or another.
The Present Day CCD
Number of cafes of Cafe Coffee Day across India from financial year 2014 to 2024
At its peak in 2019, CCD operated 1,752 outlets across 243 Indian cities. However CafĂŠ Coffee Day reportedly shut down around 280 outlets in the wake of FY20 and with this, the company reported a total of 1480 outlets, as per the reports dated June 30, 2020. CCD closed 19 more stores in the past 12 months, reducing its total to 450 in 141 cities.
The Bengaluru-based coffee chain recorded a 10% rise in net revenue, reaching INR 1,013 crore ($120.6 million) for the 12 months ending 31 March 2024.
Coffee Day Enterprises Ltd (CDEL) reported a total default of INR 433.91 crore on interest and principal payments to banks, financial institutions, and unlisted debt securities, including NCDs and NCRPS, for the quarter ending June 30, 2024. The total loan funds of the company amounted to INR 1,159 crore, including INR 102 crore in long-term borrowings and INR 1,057 crore in short-term borrowings, with net debt at INR 881 crore as of FY24.
The company had been trying to pare its debts with the sale of its non-core assets after the death of its founder. CCD has announced to repay its debts worth INR 1644 crore to 13 of its lenders. This had been possible with the sale of its technology business park to Blackstone Group and Salarpuria Sattva at an enterprising value of INR 2,700 crore. The company also sold its stakes to Mindtree and L & L&T previously.
The company’s net debt was worth INR 2,909.95 crore in the FY20 and as per the latest reports dated March 31, 2021, CDEL’s net debt came down to INR 1,731 crore.
It was during the same time that CDEL announced that it had appointed Justice Manjunath to “suggest and oversee actions”, who will supervise the recovery of over INR 3,535 crore, which was allegedly siphoned out of the company into Mysore Amalgamated Coffee Estates Limited (MACEL), which goes as a personal firm promoted by its late founder V G Siddhartha.
The last report said that the “Management of the Company is putting its best efforts to get back the company on track.” It further added that “the debt levels have reduced significantly from the beginning of the financial year March 2021.”
CDEL’s net operational revenue was measured on a consolidated basis in FY21, which was valued at INR 853 crores against INR 2,522 crores in FY20.
The brand currently has a presence in the coffee, logistics, and hospitality segments. The coffee business of the company, which includes its popular cafĂŠ chain brand CafĂŠ Coffee Day (CCD), contributed around 47% of its consolidated net revenue. The other remaining parts were a result of its logistics business and logistics, which accounted for 45% and 8% of the revenues.
CCD currently operates 450 cafes, which run in 141 cities, and 265 CCD Value Express kiosks. Furthermore, it also boasts of having 52,581 vending machines as of FY24 to “dispense coffee in corporate workplaces and hotels under the brand”.
Achievements of CCD
2007 – Cafe Coffee Day won the Times Food Award under the category of “Best Coffee Bar” from the Times of India
2008 – Cafe Coffee Day won the Burrper’s Choice Award for being cast a ballot as the “Coolest CafĂŠ” by the clients of burrp.com
2009 – Espresso Day Global won the honor of “Retailer of the Year” under the classification of Food & Beverages (cooking administrations) by the Asia Retail Congress
2010 – Cafe Coffee Day won the Indian Hospitality Excellence Award under the category of “India’s Most Popular Coffee Joint: 2010”
2012 – Cafe Coffee Day was positioned as the 26th Most Trusted Service Brand in India and as the second Most Exciting Brand under the classification of “Nourishment Services” in India under a study done by Brand Equity (EconomicTimes)
2012 – Cafe Coffee Day won the Best Coffee Bar Award from mouthshut.com
2013 – Cafe Coffee Day was positioned as the 26th Most Trusted Service Brand in India under a study done by Brand Equity (Economic Times)
2013 – Cafe Coffee Day was granted “The NCPEDP â Shell Helen Keller Award 2013” by the National Center for Promotion of Employment for Disabled People for being a good example organization in creating work open doors for individuals with inabilities
2013 -Espresso Day Global was granted as the Best Retailer under the class of “Best Customer Service in CafĂŠ Restaurant” by the Star Retailer Awards
2013 – CafeCoffee Day won the Brand Excellence Award in retail part from ABP news
2012-2013 – Espresso Day Global was granted a bronze prize by the Coffee Board of India for being the third-best exporter of green espresso
2014 – Espresso Day Global was granted “Retailer of the Year” (Organization Food and Grocery) for retail greatness by ABP News
2014 – Espresso Day Global was granted ‘Retailer of the Year for brand greatness by ABP News
2014 – Cafe Coffee Day was positioned as the 22nd Most Trusted Service Brand in India, as 27th Most Exciting Brand in India, and as second Most Exciting Brand under the class of “Nourishment Services” in India, under an overview done by Brand Equity (Economic Times)
2014 – Mr. V G Siddhartha was conferred upon the ‘ET Retail Hall of Fame for his commitment to the development of the retail part
Conclusion
CafĂŠ Coffee Day has faced tough times but is still loved for shaping Indiaâs coffee culture. The company is working hard to reduce its debt and grow again. With its strong brand, loyal customers, and new ideas, CCD can remain a favorite place for coffee lovers.
Yes, CCD has been in debt for a long time. Coffee Day Enterprises said it has Rs 518 crore of debt including both short and long term and that it has defaulted on about Rs 263 crore of payments.
Is Cafe Coffee Day shutting down?
Almost 500 cafe outlets of the coffee chain Cafe Coffee Day have been closed down since April 2019, as the company looks to arrest the falling profitability of its coffee business and readies for divestment of the business. CCD had to close these outlets as it readies for divestment.
What happened with Cafe Coffee Day?
Coffee Day Enterprises Limited reported that at least Rs 2,000 crores ($270 million) was missing from its accounts, soon after the death of founder V.G. Siddhartha which led to an investigation initiated by their board.
What is the CCD tagline?
“A lot can happen over coffee”, is the tagline of Cafe Coffee Day.
Who are the competitors of Cafe Coffee Day?
A few cafe coffee day competitors are – Starbucks, Costa Coffee, Barista, and Gloria’s.
Can I sit and work in CCD?
It’s ok to sit and work until you’re asked to leave.
Why is CCD in loss?
CCD is at a loss because the founder V.G. Siddhartha died of an apparent suicide in 2019. His sudden death came as a surprise and caused a huge loss to the company. Also, the brand has suffered another hit due to the Covid-19 pandemic and the lockdown.
Dabur is one of India’s most reputable and well-known household brands; therefore, it doesn’t need an introduction. The 140-year-old Ayurvedic firm Dabur began as an Ayurvedic medication manufacturer in 1884. Since its modest beginnings in Kolkata’s backstreets, Dabur India Ltd. has grown into a consumer goods corporation with the world’s broadest range of herbal and natural products.
About Dabur
Dabur has effectively transitioned from a family-owned company to a professionally run firm. With sales of over INR 12,886 crores and a market valuation of over INR 106,569 crores as of December 2024, Dabur India Ltd. is one of the top FMCG firms in India. Building on more than 140 years of quality and experience, Dabur is currently the most reputable brand in India and the biggest provider of natural and Ayurvedic healthcare worldwide.
With a range of more than 250 Ayurvedic products, Dabur India is also a global leader in Ayurveda. Nine different power brands are currently part of Dabur’s FMCG portfolio in India: Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur Pudin Hara, Dabur Lal Tail, Dabur Amla, Dabur Red Paste, and Dabur Vatika are a powerful global brand.
Dabur has remained loyal to its rich history and 140 years of quality and experience by earning the title of “custodian of Ayurveda.” Dabur is currently the biggest “science-based” ayurvedic company in the world. With a strong commitment to Ayurveda, Dabur has spent more than a century creating products using a range of scientific interventions to demonstrate the benefits of Ayurveda and its constituents. By providing goods that perfectly capture the benefits of Ayurveda and align with consumer tastes, Dabur offers a distinctive platform.
Dabur will keep emphasizing the “herbal and natural” offer as its central tenet both domestically and internationally in the future.
Brands are strategic assets because they provide great experiences and engage with customers on an emotional and rational level.
70% of Dabur’s overall sales come from nine power brands. These consist of one brand in foreign markets and eight in India (Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur Pudin Hara, Dabur Lal Tail, Dabur Amla, Dabur Red Paste, and Dabur Vatika). Given its 140-year history, Dabur has a legitimate right to triumph in the healthcare sector, where the majority of power brands operate. The company’s mission to be committed to the health and well-being of every household is reflected in the items it offers.
Through Digitisation
For Dabur, using digital transformation to stimulate innovation and growth is not a novel requirement. By pursuing an aggressive eCommerce and digital marketing strategy to capture the expanding market size of millennials and Gen Z, Dabur is capitalizing on the digital revolution. They conduct targeted advertising on a variety of digital platforms to appeal to young people, and they supplement these efforts with more easily accessible products on e-commerce and online marketplaces.
By Dominating the Rural Market
One of Dabur’s primary strategic focus areas is the country’s rural market. Dabur’s domestic market sales are among the largest in India’s FMCG sector, with approximately 47% coming from rural areas. To access this expanding customer base, Dabur has been focusing on expanding its direct reach to villages around the country. They have expanded their distribution network to include about 90,000 communities and 1.3 million outlets.
USP of Dabur
Dabur is a unique player in the consumer products market because of its USP, which is its focus on health and wellness segment. In order to grow its market share, brand will thus keep using this as a competitive advantage.
Dabur SWOT Analysis
Dabur SWOT Analysis
Dabur Strengths
Dabur distributes its goods through 5000 distributors and 3 million outlets in more than 60 countries.
Dabur’s strong product development and brand image.
A robust distribution system with a vast supply chain.
Health care, education, and other socioeconomic activities are among Dabur’s welfare initiatives.
Dabur Weaknesses
International and major domestic competitors pose a serious threat to Dabur products.
With a wide range of consumer preferences and pricing tactics, the FMCG sector is vibrant and fiercely competitive.
For FMCG companies, regulatory compliance is higher in Indian markets.
Dabur Opportunities
Acquisitions and mergers to bolster the brand.
Because of its tremendous brand recognition, Dabur is a household name even in rural places.
Demand for Ayurvedic products is rising both domestically and internationally.
Dabur Threats
The buyers and sellers in monopolistic competition are numerous. However, none of them sell identical goods. Although all dealers sell somewhat different things, the products are comparable. This industry is therefore quite competitive.
Dabur offers a vast array of products and a huge portfolio. Local brands pose a risk of duplication since they could produce identical goods and market them under Dabur’s name.
Conclusion
With more than 250 herbal and Ayurvedic products in its portfolio, Dabur is the largest Ayurvedic and natural healthcare firm in the world and a prominent FMCG brand in India thanks to its strong track record. It continues to have a distinct outlook on the future. Nonetheless, there are several obstacles due to rivals and laws controlling the FMCG sector. Dabur is positioned to play a big part as India expands and the demand for natural healthcare rises.
If the business manages its difficulties effectively and seizes future opportunities promptly, it emerges as a real victor over its rivals. Additionally, before making any investing decisions, we advise speaking with your financial advisor.
FAQs
When was Dabur founded?
Dabur was founded in Kolkata by Ayurvedic practitioner S. K. Burman in 1884.
What are the nine different power brands of Dabur?
Nine different power brands that are currently part of Dabur’s FMCG portfolio in India include Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur Pudin Hara, Dabur Lal Tail, Dabur Amla, Dabur Red Paste, and Dabur Vatika are a powerful global brand.
How does Dabur make money?
Dabur makes money through its different brands, digitisation, and dominating the rural market.
Tata Consultancy Services (TCS) was founded in Mumbai India way back in 1968 by J.R.D. Tata and F.C. Kohli. Today, it has become the world’s leading IT services, consulting, and business answers provider. Originally conceived as a department of Tata Sons, it specialized in the delivery of technology know-how into an increasingly industrialized world as the countries progressed toward industrialization. Over time, the company has grown and today serves over 46 countries with world-class innovative solutions.
TCS showcases the broadest portfolio of services digital transformation, AI, cloud tech online security, to business process management. Even with its base in Mumbai, the company can walk hand in hand with global economies, thus making it known for some of its finest quality work across multiple fields of business. TCS puts innovation and customers first-they employs a workforce of more than 500,000 skilled individuals who are called TCSers. This dedicated team combines talent with the latest technology to solve tough business problems and achieve worldwide client success. TCS has always been committed to excellence in reshaping businesses with its knowledge and revolutionary solutions.
About Tata Consultancy Services (K. Krithivasan CEO of TCS)
Tata Consultancy Services was established on June 19, 1968, as Tata Computer Systems by Tata Sons Limited. A subsidiary company under Tata Group, TCS serves 46 countries worldwide and has become the leader in the IT and consultancy domain.
In its inception years, TCS was mainly known for providing services like punch card operations for TISCO and inter-branch reconciliation system to the Central Bank of India, and bureau services for UTI. TCS created SEMCOM-an electronic depository cum trading system for a Swiss client by 1975. In 1980 it established its first hub for software research and development, the Tata Research Development and Design Centre (TRDDC), at Pune. It opened its first offshore development center in 1981 and purchased a Canada-based software factory.
Tata Consultancy Services went public in 2004, adding a new shot of adrenaline to its growth trajectory. In 2005, TCS became the first Indian IT firm to enter into bioinformatics. By 2006, TCS had built an ERP system for the Indian Railway Catering and Tourism Corporation and reached an annual revenue of $500 million from e-business by the year 2008. In 2011 it also introduced SME-oriented cloud solutions.
Tata Consultancy Services has set quite a lively pace in business, indeed making it the grandee in IT services and consultancy. This model of business has been built around a diversifying and creative service offering, along with a very strategic operational framework.
These numerous consultancy, digital transformation, application development, IT infrastructure management, engineering solutions, and business process outsourcing -mean that the customer is bound to have every possible solution, right from enriching the operational efficiencies to solving very complex technical problems.
Innovation drives TCS growth as well as investments directed toward research and development. The company is researching future front-end technologies artificial intelligence and cloud computing to data analytics to automate processes for deriving insights and predicting market conditions.
The next pillar in business success for the company is the Global Delivery Model (GDM). Without any dead time overlap, it enables delivery across the time zones, 24/7. This model, apart from the above, makes asset ownership better among the customers in terms of satisfaction and productivity, and it is invaluable during crisis time as it enables fast and reliable response systems.
One of the main reasons for keeping a consistent performance in the IT world is that Tata Consultancy Services has a diversified revenue model with competitive rivalry in the IT field.
1. Fees on Services: The most significant revenues come from consulting engagements and IT service agreements such as software development and maintenance contracts.
2. Project-Based Revenue: This refers to planned or expected revenue from custom software development projects as well as other projects that focus on the client’s individual needs for digital transformation.
3. Subscription Income– All of this recurring income is from managed services and payments made for proprietary software, such as those made for TCS Ignio.
4. Business Process Outsourcing (BPO): The revenue is quite stable since most long-term contracts are engaged in the handling of client business processes.
5. Cloud Services: The revenues are generated from Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and subscriptions into the cloud.
6. Innovation: TCS takes advantage of several other applications, such as Data as a Service (DaaS), as well as several automated-based solutions from its investigative work.
Tata Consultancy Services (TCS) distinguishes itself from the crowd in IT services with its diverse portfolio and industry-specific proficiency and experience. Furthermore, the delivery model that TCS uses has been proven in business, as it sets the company apart through the global availability of its services. Innovations and strong customer relationships are what really propel solutions into that class of world-class, customized solutions, making TCS the best, most reliable partner for businesses in the world.
TCSÂ SWOT Analysis
TCS SWOT Analysis
Strengths
Adaptability: The adaptability of TCS and its acceptance in different cultural and business contexts is enough to make a point about the fact that it has acquired a very global presence by being in 152 countries across 5 continents.
Brand Equity and High Financial Stability: TCS was worth USD 19.2 billion in 2024, making it the second-most valuable IT services brand in the world. It raked in a whopping $ 29.1 billion in revenue collection, thus making it a safer bet in the eyes of investors and partners.
Wide range of services: TCS has got a pretty wide range of services that go from software development to business intelligence and partnerships with many global leaders like Amazon, Adobe, and Bosch to render advanced customer solutions.
Workforce skilled and Varied Clientele: Award-winning best employer across 32 countries; TCS has huge budgets when spending on employee development. Thus it serves a diverse clientele across banking, retail, and telecommunications, among others.
Weaknesses
The Operational and Legal Hurdles: Due to Diligenta’s underperformance and the expensive litigation around Epic Systems, affected the financial stability as well as the overall reputation of TCS.
Gaps in Products and Talent: Though generally strong in services, TCS yet fails to meet expectations regarding the product, while talent retention continues to be a problem as attrition rates are better than industry peers.
Pressure of Innovation: There are pressing needs for TCS to step on the accelerator and ramp up innovations, given the fast pace of technological change and competition in delivering first-of-a-kind market solutions.
Opportunities
A digital and cloud solution expansion: Among the increased needs for cloud computing, digital transformation, mobility, and remote work solutions, there is much more coming from TCS City. This will allow it to be well-positioned to capitalize on created infrastructure and strong expertise.
Emerging Market and Sector Growth: TCS can delve into those deep untapped areas present in Africa, Southeast Asia, and Latin America, tapping into entirely new areas such as gaming, entertainment, and e-commerce to broaden its sources of income.
Cybersecurity and localized offerings: Global cyber threats are rising, and they offer opportunities for TCS to enhance its cybersecurity solutions. Localized IT solutions for specific markets will also have some competitive advantage.
Threats
Amid extremely strong market competition and growing costs: The other major competitor for TCS, to a very great extent, is legally poisonous competition with Infosys, Accenture, and IBM. This goes on with margin pressures, rising costs, and market share issues.
Heightening Cybersecurity and Compliance Challenges: Heightening cyber risk and new regulatory developments concerning data privacy-witnessed in consideration of such things as work visa and outsourcing-affect the operations and strategy of major TCS geographic markets.
Mobility of Talent & Operational Limitations: Employees keep turning over ever more yet the impasse of new restrictions with immigration – to be more specific, the H-1Bs – simply leads to higher recruitment costs and problems in operation while the increasing domestic competition is off very huge multinationals.
TCS or Tata Consultancy Services is a global leader in IT innovation and digital transformation across varied industries. Its vast international presence and solid client base in diverse service offerings enable it to match the challenges of the digital era. However, that very agility and creativity must also apply in the areas of legal disputes, subsidiary underperformance, and the evolution at the pace of the technology world. Areas with great potential include cloud computing, cybersecurity, and emerging markets. Agility to dynamically change according to market dynamics without losing focus on excellence and innovation became a major pillar for TCS to continue its leadership in the IT services sector against the challenge of rising competition and newer business models.
FAQ
How does TCS earn money?
TCS earns money through IT services, consulting, software products, and outsourcing across industries.
What type of business is TCS?
TCS is an IT services and consulting business.
Why TCS is so successful?
TCS is successful due to its strong client relationships, diversified service offerings, global presence, consistent innovation, skilled workforce, and focus on long-term growth strategies.
Moglix provides a comprehensive digital marketplace for a wide range of industrial and maintenance, repair, and operations (MRO) items with the goal of revolutionising the supply chain and procurement processes for enterprises. The platform offers a wide range of items from different manufacturers to meet the demands of industries like manufacturing, construction, automotive, and more.
Rahul Garg established the Indian e-commerce platform Moglix in 2015 with the goal of offering business-to-business (B2B) solutions for procurement and industrial supplies. products likeMRO, fasteners, electrical, hardware, pneumatics, safety items, power tools, and office supplies are all sold on Moglix.com. In addition to providing supply chain solutions, online selling, and vendor management, Moglix is a business-to-business e-commerce company that specialises in the procurement of indirect materials, including MRO, fasteners, hardware, electrical, lighting, and safety shoes. Automotive, oil and gas, construction and infrastructure, pharmaceuticals, power, telecom, and hospitality are just a few of the industries it supports.
Facilitating smooth B2B transactions for industrial items is at the heart of Moglix’s business strategy. Through its platform, Moglix links suppliers, manufacturers, and companies, facilitating effective product buying and selling. By charging a commission or fee for enabling successful transactions on its platform, the business generates income through a transaction-based business model. Additionally, Moglix might make money by offering value-added services like supply chain optimisation, vendor finance, and bulk discounts.
Moglix has established itself as a major participant in the industrial procurement industry thanks to its dedication to improving procurement efficiency and offering a trustworthy and transparent marketplace. It was a pioneer in the digital transformation of B2B commerce in India.
How Moglix Makes Money?
How Moglix Makes Money?
Moglix combines various business concepts to generate revenue.
Generating Revenue through traded goods – Industrial goods such as power tools, hand tools, adhesives, safety and security, and electrical equipment are among Moglix’s main sources of revenue.
Generating Revenue through online sales commission – Moglix receives a commission from purchases made online
Generating Revenue through information technology services – Moglix gets revenue from support and IT services
Controlled expenses and a spike in other revenue allowed Moglix to cut its losses by 16% to INR 189 crore ($22.5 million) in FY24 from INR 225 crore ($26.8 million) in FY23, despite the scale growth being unchanged. It had an EBITDA margin of -1.5% and a ROCE margin of -4.82%.
Moglix SWOT Analysis
Strengthens
A robust web presence with an intuitive user experience
Numerous goods serving a range of industries
Cultivated connections with several manufacturers and suppliers
Pricing that is competitive and draws in enterprises
Weakness
Low brand awareness in comparison to more established rivals
Reliance on digital channels, which leaves it open to technological disruptions
Possible challenges in inventory control for a wide variety of products
Problems with customer service because of the large number of enquiries
Problems with customer service because of the large number of inquiries
Opportunities
Capitalise on increasing demand in the business-to-business market for e-commerce solutions.
Entry into foreign markets and areas experiencing rapid industrial development.
Possibility of expanding product offers to include more specialised goods.
Alliances and collaborations with other tech-driven businesses.
Threats
Fierce rivalry between new and old competitors.
Economic swings have an impact on purchasing power and the industrial supply chain.
Changes in regulations that affect internet sales methods.
Rapid advances in technology necessitate constant adaptability.
Conclusion
Despite obstacles like customer service requirements and brand recognition, Moglix has a strong foundation thanks to its supplier ties and technological strengths. Significant growth prospects are presented by the changing e-commerce scenario, especially in international markets and sustainable product offerings. However, with cybersecurity issues and challenges from intense competition looming big, vigilance is essential. Moglix may improve its market position and take advantage of new developments that will shape the industrial supply sector’s future by carefully utilising its strengths and navigating its flaws.
FAQ
How does Moglix make money?
Moglix makes money through the following methods:
Generating Revenue through traded goods
Generating Revenue through online sales commission
Generating Revenue through information technology services
Who is the CEO of Moglix?
Rahul Garg is the founder and CEO of Moglix.
What does Moglix company do?
Moglix is a B2B e-commerce platform specializing in industrial products, supply chain management, and procurement solutions.
Flipkart Fashion has always been more than just an online destination for style enthusiasts. Itâs a brand that understands its audienceâfashion-savvy Millennials and Gen Zâand consistently finds innovative ways to engage with them.
When it comes to blending innovation and relatability, Flipkart Fashion knows how to make a statement. Their latest move turned a high-energy concert into an unexpected stage for their End of Season Sale (EOSS), proving that smart marketing doesnât always need a spotlightâit just needs the right context.
Hereâs what happened:
At a packed concert filled with excitement, attendees werenât just vibing to the musicâthey were noticing something clever happening right around them. Flipkart Fashion became the talk of the event through witty placards carried by concert-goers.
These placards, featuring lines like âIt’s okay concert tickets pe paise udaye par fashion pe bacha liye,â didnât feel like ads. They felt like a part of the moment, a tongue-in-cheek nod to the realities of balancing life expenses with a love for fashion. The crowd couldnât help but laugh and relate, and soon the messages were everywhereâshared on Instagram Stories, meme pages, and even LinkedIn.
Flipkart Fashion Creative Marketing at the Concert
What Made This Campaign Click?
It wasnât just the humor. Flipkart Fashionâs genius lies in blending relatability, timing, and cultural awareness.
Being where it matters: They showed up where their audience naturally hangs outâat live events, where energy is high, and moments are memorable.
A touch of realness: The placards spoke directly to the struggles and joys of adulting, like juggling concert tickets and wardrobe upgrades, striking a chord with Millennials and Gen Z alike.
Effortless virality: The campaign didnât scream for attentionâit created content that people wanted to share, effortlessly amplifying its reach.
Why This Works as a Case Study in Modern Marketing:
Flipkart Fashionâs approach wasnât about pushing sales; it was about connecting in an authentic, understated way.
Cultural relevance: By aligning their campaign with a live concert, they became part of the shared experience, making their presence feel natural and unforced.
Understanding the audience: The messaging resonated because it was crafted around the lives of their target audience, making the campaign as relatable as it was entertaining.
Content that travels: A simple, clever idea turned into something far bigger, proving that smart, minimalist marketing can create a lasting impact.
Flipkart Fashionâs EOSS campaign didnât just advertise their saleâit made their brand a part of a cultural moment. And in todayâs landscape, thatâs what stands out.
In addition to revolutionising the Ed-Tech sector, Unacademy offers educators and enthusiastic learners an online platform. In India, Unacademy is one of the biggest learning platforms. The success of Unacademy, which achieves remarkable heights in the Ed Tech sector, inspires them to perform better for its students. At the moment, it provides free education to Indian students from the top instructors in the country.
Unacademy was founded by Gaurav Munjal, Hemesh Singh, and Roman Saini. Their goal was to create a technology that would enable more individuals to receive high-quality education. Gaurav Munjal was a computer science student once.
In order to provide training lessons, he created Unacademy on YouTube in 2010. Hemesh Singh was very interested in technology, and Roman Saini, a former doctor, is now a teacher.
They later worked with Munjal to transform the channel into a complete edtech platform. Their expertise and passion for teaching have been crucial to Unacademyâs development. Professionals and students can learn online using Unacademy. It offers a large selection of courses and learning resources. It can be used to participate in interactive lectures and live sessions. It provides educational resources on a wide range of subjects as well as numerous competitive tests. Promoting broad access to education helps Unacademy achieve its mission of bolstering democracy.
Unacademy has expanded quickly since its founding. The site has seen exponential growth in its user base. It is enrolling millions of individuals in its classes. Its numerous courses, the interesting methods it aids in learning, and the presence of renowned instructors are the reasons for this expansion.
Unacademy operates on a freemium basis. To put it simply, Unacademy charges a subscription fee for its premium material while providing some of its fundamental services for free. While the live, interactive events with leading experts are paid, the pre-recorded classes are free.
While the basic content is free, Unacademy offers additional premium features and benefits through subscription plans.
Earning through a subscription model
To access its premium features, which include access to the most recent and updated Exclusive Content, live doubt-clearing sessions, mock exams, and individualised advice, students can choose to pay for memberships.
Earning through Exam Preparation and Test Series
For a variety of competitive exams, including UPSC, SSC, Banking, Railways, and others, Unacademy provides specialised courses and test series. The targeted preparation that these exam-specific courses offer is often available at an additional cost to students who are aspiring to take these exams.
Earning through Corporate Partnerships
Unacademy collaborates with schools, universities, and other educational establishments to offer online certification programmes and courses. These partnerships increase the legitimacy of Unacademy’s courses and broaden their audience reach.
Earning through Placements
This is Unacademy’s most recent feature. “Relevel” is the name of Unacademy’s placement platform. It is specifically made to link employers and job seekers. In other words, students can find their desired employment within 15 days after applying. Additionally, they will have access to courses tailored to their ideal career! Relevel claims to have over 2.35 lakh users and a 100% placement rate. To provide this service, the business charges a price.
USP of Unacademy
During FY22, Unacademy made INR 844 crore. This mammoth revenue is generated primarily through the selling of services, educational materials, and other kinds of income.
The core of Unacademy’s business strategy is a combination of advertising, live classes, subscription options, and instructional resources. Its revenue streams are further diversified by its strategic alliances and the introduction of platforms like Relevel and Graphy. Despite beginning as a free learning platform, Unacademy has effectively made money off of its services to establish itself as a significant force in the edtech industry, especially in the cutthroat exam preparation sector.
FAQ
How does Unacademy make money?
Unacademy makes money through subscription fees, live classes, advertisements, and partnerships with educational institutions.
Shalini Rath
