Everyone has their type and preferences when it comes to cars. Cars are something, the interest which is shared by many.
In the modern days, there are many types of cars available. For Example- Sedan, SUVs, Coupe, Convertible, Hatchback, etc. One of the common interests of people is luxury cars. Some examples of luxury cars include Range Rover, Mercedes, BMW, Rolls-Royce, and more.
Rolls-Royce is probably the love and dream of many. Having this car is a status symbol but buying one can create a huge hole in the pocket. As Rolls-Royce is considered one of the most expensive cars. Get insights into the reasons why Rolls-Royce cars are so expensive.
Rolls-Royceâs history didnât begin with the cars. In earlier times, it was an electrical and mechanical business rooted by Henry Royce in 1884.
In the year 1904, Royce made his first motor car. In the same year, Royce met Charles Rolls. Charlesâs company used to sell quality cars in London.
The collaboration between the two led to the formation of the Rolls-Royce company in 1906. The first launch was the six-cylinder Silver Ghost. In the very first year, it got the status of the best car in the world.
In 1990, the company formed a joint venture with Bavarian Motor Works (BMW) of Germany the aero engines. BMW got the license of the rights of the name and logo of Rolls-Royce. Since then, BMW is the parent organization of Rolls-Royce.
Rolls-Royce and Its Innovations
Rolls-Royceâs innovations are traced back to the time of World War I. During the first world war, air wars were happening. This created a need for strong and sturdy aircraft. So, as a result, Royce came up with his design of the first aircraft engine- The Eagle.
The âRâ Engine
Rolls-Royce R Engine
In the late 1920s, Rolls-Royce indulged in the development of the âRâ engine. These engines were made especially for air racing. In the year 1931, it created a world record of airspeed at 400mph.
Merlin Engine
Rolls-Royce Merline Engine
Rolls-Royce has also indulged in the development of Merlin engines. Their Merlin engine motorized Hawker Hurricane and Supermarine Spitfire in the battle of Britain. The demand for Merlin engines increased during the second world war. This demand helped Rolls-Royce earn a position of a strong contender in the aero force from a small company.
Aero gas Turbine
Rolls-Royce Aero Gas Turbine
The company has also developed aero gas turbines. They entered the market of civil aviation with Vickers Viscount, the then British aircraft line.
Trent 1000
Rolls-Royce Trent 1000
Trent 1000 of Rolls-Royce is the only engine suitable for Boeing 787 Dreamliner. In the year 2006, it ran for the first time.
There are many other engine innovations made by Rolls-Royce. For example Trent 7000, Trent XWB-84, Trent XWB-97, and more.
At present, Rolls-Royce has a strong deal in five products and services. These are Defence products and services, Civil Aerospace, Power Systems, Electrical, and R2 Data Labs.
Rolls-Royce is an age-old company that has aged like fine wine. Right from the beginning, it has never failed to develop and deliver the best quality.
Rolls-Royce cars with their fine and best quality are considered one of the most expensive cars in the world. There are certain reasons which make it so expensive. These are as follows:
Why Rolls-Royce Car are so Expensive?
Special Models and Exquisite Features
One of the most important reasons for the expensiveness of Rolls-Royce is their special car models with exquisite features. The buyers sometimes come up with different ideas to give their Rolls-Royce an exquisite and personalized look.
For example- Once a buyer requested a car finish that was diamond-studded. Rolls-Royce was keen to take up this challenge. The excellent team of the company crushed many real diamonds. They then mixed these with the color. In this way, with the help of this mix, they added the desired shine to the car.
The most expensive model of the company now is the Phantom. The pricing of Phantom starts from $450,000.
Posh Headliners
The starlight headliner of Rolls-Royce
The second feature that makes Rolls-Royce super expensive is its headliners. The Rolls-Royce cars come with star-studded headliners. This makes for an exclusive atmosphere for the cars.
Making these headliners is a super lengthy and effort-borne process. These are created by piercing almost one thousand holes with fiber-optic threads.
Sometimes, buyers ask for personalization in this feature as well. Since these are star-studded, few prefer to add specific effects of light.
Exclusive Procedure for Color Coating
Every car of Rolls-Royce undergoes a special color coating process. The coating process takes a lot of time even before the color selection begins. At last, seven coats of color are used to get the final result.
This feature is unique and expensive because this too offers the option of customization. Buyers are not limited to selecting from the standard shades of color. They can choose a color as rare as their petâs color. In such cases, the company makes use of DNA materials to obtain the accurate shade.
This specific style of color coating is a long process. It requires a great amount of time and effort. Thus, another reason that makes Rolls-Royce cars expensive.
The Soundproof System
The best and the most important feature that makes Rolls-Royce cars stand out is its soundproof system. The cars are made with driving mechanisms that are soundproof. About 300 pounds of insulation is added around the cabin while making the cars. This enables the cars to run with no sound at all.
This feature makes the car’s environment friendly. The soundless rides prevent noise pollution.
The soundless system adds a luxurious and chic touch to the cars. Thus, making Rolls-Royce expensive.
A Powerful Identity
Over the years, the company has been able to create a huge identity for itself in the world. The brand name Rolls-Royce is considered a status symbol for the elite class.
Rolls-Royce Car Golden Logo
Almost every billionaire in the world owns a Rolls-Royce car in their luxury car collection. The biggest collection of Rolls-Royce cars is 500 cars. This collection belongs to the Sultan of Brunei. This is the most expensive collection held by a person.
Rolls-Royce has built a powerful identity for itself in the world. Its identity makes it an associate of luxury. This makes it one of the most expensive in the world.
Rolls-Royce is one word that is exclusive. It makes cars that are one of a kind. The company creates such unique and specific designs for the buyers that if another person wants the same, they have to take the permit from the original buyer.
The perfect and exclusive blend of the features makes the company stand out. Most importantly it is the luxury and the personalized customization that makes Rolls-Royce expensive.
FAQs
Why Rolls-Royce cars are so expensive?
The prime reason behind the Rolls-Royce cars being expensive is their quality. Another reason can be considered as they are counted among the luxury product that can be custom-made and comes with a number of luxury services. Heseveralst of Rolls-Royce is always expected to be more than the normal range.
How many Rolls-Royce is in India?
The exact number for Rolls-Royce in India is still a debatable topic. However, the estimated number is around 25-30 units in India.
Does Rolls-Royce break down?
There is one myth surrounding Rolls-Royce that it does not break down. However, in reality, Rolls-Royce can also break down irrespective of the details with which they have been made.
Auction houses are a place where property or any kind of objects are sold to anyone who bids the highest. Now there are different kinds of auctions that are held amongst all of them there are Art auctions. In art auctions, different types of exclusive artworks are on sale, and whoever places the highest bid can take the artwork into their possession. They are basically public events where anyone can participate.
In an Art Auction, any type of art can be sold but paintings are the most common. Now, one cannot hold an art auction without knowing anything about it, it needs lots of work and patience. In this article, we will talk about how Art Auction actually works in real. So, letâs get started with our business.
âAuction houses run a rigged game. They know exactly how many people will be bidding on work and exactly who they are. In a gallery, works of art need only one person who wants to pay for them.â
An auction is nothing but a sales event where buying and selling of products and services happen through bidding. People compete with each other to get hold of the item of their choice.
To secure the item one has to bid higher than the previous bidder, the price increases with each bid until no one else is willing to bid more than the current price. For example, if the last bid is $50,000 and no one is willing to bid for $50,500, the item will go to the buyer with the highest bid.
In an auction, one can find various objects like antique pieces, rare objects, properties, company or some artworks that include painting and others. In every auction house, there is a team of specialists who sets the prices for the items that are going to be used for auctions.
History Of Auctions
The exact process of Auction came into existence around 500 B.C. At that time, women were sold in Greece for marriage by using the method of auction. Then in the United States, various properties, agricultural products, and slaves were used to get sold through this method.
With time, artworks, properties, and rare objects are sold to people. Thanks to the help of modern technology, computers, cell phones can be used for bidding in auctions. Not only that, but we also have various online auction sites like eBay where people can bid to acquire their favourite items.
This is the most common type of auction. It is an open auction where the participants compete with each other by bidding higher than the other buyers to secure the item for themselves.
The prices of the items are stated by the hosts and then the bidding starts, the participants call out the bids and it continues till no one is willing to bid higher than the last bid. The item goes to the person who is the highest and the final bidder. This auction is common while selling wine, artworks, tobacco, or any kind of antique product.
Dutch Auction
This is like the opposite of an English Auction. The auctioneer starts the auction with a high price and the bid keeps getting lower until one of the participants who is a bidder is willing to accept the price of the item. This method of auction is mostly used for flowers, fish, tobacco, and for investment securities.
First-price Sealed-bid Auction
It is basically a blind auction, where the bidders submit their bids but are shielded from the eyes of their competitors. Only one bid can be submitted for the auction and there is no option to change it. This method is mostly used in foreign exchange, refinancing credit, government contract tendering, mining leases, and military procurement.
Second-price Sealed-bid Auction
This is quite like the First-price sealed bid auction the only difference is that the highest bidder gets the products at the price that was bid by the second-highest bidder. This type of bidding method is used for online advertising.
How do Art Auctions Work?
An auction has to follow a process so that it can work out properly, down below are the steps that have to be followed:
A Short Preview is Given about the Auction
Art Auction Preview
At the beginning of the auction, the potential buyers are given a short preview where they get to see what products are going to be on sale at the auction and what their conditions are. The preview time can a day before the auction or a few hours before the start of the auction.
Buyers are Registered
After the preview, the potential buyer has to register themselves with the auctioneer. The process of registration involves the buyerâs details like their phone number, address, and identity proof. The bidders are then given a number card through which they can get identified.
Beginning of the Auction
The sound of a bell signifies the starting of the auction. The host or the auctioneer talks about the items and describes them to the bidders and then the bidding is started with a minimum price. Then the bidders start their bidding and the price keeps increasing with the bidders calling out their bids higher than the previous one.
End of Auction
The whole procedure stops when there are no more bids and when the hammer comes down, the person with the last bid takes the object into their possession after paying for it.
Billions of dollars are obtained through art auctions and it can only happen when it is done properly. Auction houses need to be careful with anything and everything when it comes to art auctions. If you are a fan of artworks then an art auction is an ideal place to find your favourite piece and let others do the same and to do that the whole process must be followed diligently.
FAQ
How do art auctions really work?
Before beginning an art auction, the buyers are given a preview of the artwork. As the bell rings, the auction starts and the buyer with the highest bid acquires the item.
Do artists make money from auctions?
No, artists only make money when their artworks are sold on the primary market.
Can anyone go to an Art Auction?
While some of the art auctionsâ are exclusive, some can actually be attended by anyone who wants to.
What do auction houses do?
Auction houses are in charge of buying and selling goods such as rare items, artworks, or properties through auctions.
Can auctions be held online?
With time and the help of technology, auctions are now can be held online.
What could possibly come to your mind when you first witness the term “Shopify”? The only possible fraction of this term could be “Shop“. Shopify is not present in the physical world and that’s why probably has more effect on the customers. Since every business has moved to a digital platform, why not start with helping those who want to survive the market online.
With other online platforms where retailers list their products to sell, it’s more like swimming in a pool to win against the other competitors. But with Shopify, one has to just keep swimming in his own pool and survive the water.
Let’s understand the complete business model of Shopify and how it makes money.
Shopify was first founded in 2004. It is an e-commerce platform that helps sellers build a website and sell their products online. With all the ups and downs, by the course of a decade, the sales of Shopify skyrocketed. Shopify had about 12,000 merchants by then and earned a huge revenue of $105 million. It is especially known for its flexibility of payments. Its adaptability in business helped it to flourish.
Features of Shopify
The e-commerce platform is easy to operate, it is designed for the easy understanding and accessibility of the retailer. The retailer gets numerous features useful in selling products like reporting, email marketing, SEO, analytics, or branding.
Blogging
Shopify Website Builder
Shopify also provides theblogging feature that allows developing the site; one can choose themes, write articles, and initiate discussions. Moreover, it provides hosting, which means that Shopify will handle all technical issues related to your shop.
Dropshipping
Shopify Dropshipping
For someone who is interested in Dropshipping, he/she can start with this platform. According to reports, Shopify has over 800,000 stores. The stores are built using this application. It is a comparatively safer platform. Apparently, Shopify and the online store are going to survive more than anyone can imagine as merchants are widely reliable.
Online Store
Shopify gives merchants their sole identity, they have their own digitally controlled store to brand and market. It even helps in the branding of products and accepts a wide range of payment methods from the customers of the merchants. Interested Retailers can build and create an online store with plans starting from $9/month. It also provides 14 days of free trial use. Â
Unlike other platforms, Shopify gives quite satisfying customer service which is the primary reason why they love Shopify. Shopify has a huge database of FAQs, email & chat support, most importantly with an informative and helping agent on the other side of the call.
You name the product and you can sell it on Shopify. Nothing limits the lists of products/services.
How Does Shopify Work?
Shopify, in simpler terms, helps one build their own website for their business. Shopify acts as a provider of online stores. It helps you to directly create a professional trade website by registering and logging into your account.
Setting up other simple things and then the users are ready to upload and sell the products at their convenience. It helps them to start a business journey, without requiring to have any knowledge about website building.
Now let’s look at How one can start selling on Shopify. It is pretty simple to understand how to set up the business on Shopify.
First of all, you have to create an account on Shopify to enrol yourself as the seller on the platform.
Add products or services from the account, add and customize the theme for the product and finally add a domain.
Add text as the description of the selling product and add a suitable image for it.
Enable payments from settings. It has got its own payment gateway called âShopify Paymentsâ, it’s a free service. If the retailer uses other gateways â such as PayPal, Amazon Pay, or other methods, he will be charged.
Add the shipping settings. One can buy shipping labels and decide at what rate the seller wants to charge the customers.
Users can add some apps from the Shopify App Store to market and sell the products on that platform too.
Select a Price plan. The user has to upgrade after the free trial by selecting the âSelect a planâ button at the end of every page to keep going.
When the process is done, the store can then be published.
Shopify Business Model | How does Shopify Make Money
Shopify makes the majority of its revenue through monthly subscription plans and payment gateways for the usage of its services. It also makes revenue from its merchant solutions which can be technical support, marketing, and customer services.
Shopify Subscription Plans
The business of Shopify is truly based on the subscription of the merchants. The subscription amount gives lucrative returns than merchant services. On the contrary, the company made over 50% of its revenues from another stream called merchant solutions.
Shopifyâs gross volume comprises mainly from merchants paying for the Advanced Shopify and Shopify Plus plans.
As a report by Shopify, it earns heavy from the highest-priced tier (Shopify Plus) higher compared to the lowest tiers. Shopify Plus is a service for valued enterprise customers, with larger volumes.
Shopify Plus
Enterprise contracts are also way more promising as the enterprise clients usually sign an annual or multi-year contract. The huge organizations are more stable comparatively. The plans are automatically renewed unless there’s an intimation of cancellation by the enterprise account. It has around 5,300 enterprise accounts as of 2018. Just Imagine the returns!
Shopify Revenue
Revenue comprises services of Shopify POS, Payments, Capital which makes Shopify more reliable to provide a higher value to its subscribers. Thus making its subscription plans more genuine and reasonable.
Shopify defines its platform as a multi-tenant, cloud-based system engineered for high scalability, reliability, and performance. Shopify merchant solutions primarily make money frompayment processing fees from Shopify Payments, Transaction fees, Shopify Shipping, Shopify Capital, Referral fees from partners, and sales of point-of-sale (âPOSâ) hardware.
Conclusion
Starting an online business is the best option any person can do. Selling the products in the offline market is time-consuming and needs effort. But to do that you don’t have to create your own website or hire a web developer. All these can be done with the help of Shopify. Create a seller account on Shopify and sell your products online. Happy Selling.
FAQ
What kind of business model is Shopify?
Shopify operates on a platform business model where third-party sellers sell their products.
How is Shopify making money?
Shopify generates revenue from subscriptions, transactions, payment, referral fees, commissions and advertising.
Who is Shopify’s biggest competitor?
BigCommerce, an e-commerce platform based in the united states is one of the biggest competitors of Shopify.
Money is the basic set of resources everyone needs. While there are two methods to make money, one is through hard, slow and honest work and the other is by duping people fast, people tend to choose the second. In this world where everyone wants to afford things fast it has been increasingly seen that people are trying to find shortcuts to everything. This, of course, is not the right thing to do. You cannot get rich tomorrow, by any means.
It is true that you need money to be stable and all. People all over the world try hard to amass as much as they will be needing in future. However, some notorious humans try to dupe the rules and regulations that are made to safeguard the integrity of the nation. They try to avoid taxes illegally, try to amass much money that is either illegally earned or hidden and transported by any means. This article talks about that issue, which has money as the epicentre.
The conflict of money laundering in this world. We will first develop a little understanding of what money laundering is and then we will discuss what has been the cases that had the largest impact on the world. This article will end with precautionary measures. Read on to learn something about the loophole called money laundering.
Money laundering can be defined as some window dressing that is done to the âmoneyâ, to make it appear as if it was legitimately earned. It is to ensure that illegally earned money (Or even black money) looks white and pure and looks legitimately earned. It is done with some tweaks to prevent any issues that might happen in any future transactions. Thus, Money laundering makes the illegally acquired money look as if it has been obtained genuinely.
This method can be used for more than one purpose like it can be used to change or hide the nature, location, source, situation and even the movement of criminal activity. It makes the proceeds that are earned from illegal activities look legitimate and legal.
In simpler terms, laundering is the process by which hides or converts illegally earned income. It helps criminals get away with getting their money a clean and clear image. The process of money laundering is a huge criminal behind all that is wrong in the world. It provides a safe and secure passage for all the proceeds that one can earn with bad works. Any activity that is illegal, wrong and criminal is effectively hidden by the means of money laundering.
It can be drug trafficking, or even as much heinous as terrorist funding, laundering makes it look legitimate and legal. Thus, the process of money laundering is something that converts the money (from any criminal activity) to money from a legitimate source, thereby maintaining the credibility of the money earned.
Laundering is a serious crime and is done in probably every country in the world. Not only is it illegal but it is also immoral. It is such a serious problem that it encompasses both the white-collar and the street-level criminals. The roots of this business run deep in many parts of the world.
How Does Money Laundering Work?
The process of money laundering is super important for tricksters and all the criminal organisations all over the world. It is their only way on which they can rely to get their illegal money in a legitimate manner.
They are so reliant on this method that they are even ready to pay a lot of money in return for laundering money for them. This is how much they are ready to launder their illegal money. This process is not often easy, it has to be done with precise work of hands.
Anything wrong here or there can demolish the whole organisation. To avoid any errors and issues, there are different phases through which it happens. There can be many illegal ways to launder money but some points in the process are always the same and constant. We here will discuss those three common touchpoints which are common in most money laundering cases –
There are three predictive points and those are –
Placement
This is mostly the first step in a money laundering process. The first is always the entry of illegal money into the system. As soon as illegal money is placed in a tight spot, it becomes necessary to layer it with a protective genuine financial system or to cover them in legal ways.
Layering
Layering refers to the layering that is needed to cover the fingerprints on the notes, not exactly but similarly to a criminal investigation. Layering is layering the money with various transactions and accounting or bookkeeping tricks. Any accounting loophole that can hide the source of the unaccounted money, is useful here. Not to mention that it is done by experts having good knowledge and bad intentions.
Integration
The cash that is laundered through layering it with multiple accounts and transactions are now withdrawn. It is withdrawn in order to return the proceeds to the original criminal that will look like legitimately earned money. This is the integration of money in one place.
All these three methods are the most commonly seen and mostly seen/abbreviated steps in the money laundering process. But it is here to note that there can be more steps than just these three. There can be more layers and more routes by which money is integrated.
Common Methods of Money Laundering Used by Criminals
Exports
There can be Exports that are faked multiple times, in fact, it is one of the common ways criminals do this. A fake export can look like the money is legitimate and is travelling to some other country or province in some official manner. It was very frequently used in Europe in recent years.
Stock Markets
Another unsaid method is via investing the money out. Stock Markets are the major regulator of money supply and the money can be hidden behind this big money machine. Anyone can purchase shares, stakes to bonds from stock market brokers in any part of the world. Noting that the Stock market has a ubiquitous approach in all its workings, more money can be transported and invested in these money markets. Stock markets capitalise on the transaction and make it look legitimate.
Expensive Paintings
If you are a Hollywood fan, then this method would be quite familiar to you. It is evident in movies that gangsters buy some expensive art to cover the money that they have. Thus, Antiques and paintings that are ridiculously expensive can be used too. Hide money or even turn the illegal black money into legitimate white money.
Electronic Means
Then comes the smart modern way of pulling out money laundering. That is, by Electronic means. It has become increasingly easy to transfer money to each otherâs wallets. This has not to mention also eased the hard work of money launderers. Now you can just transfer money with a click of a button or a few taps. Electronic means provides a wonderful and magical opportunity to exchange money without revealing its true identity or form.
If you are a modern thief, this trick would come in really handy. Criminals can convert real money to untraceable digital money, which is super hard to trace. That illegal or black money can also be stored in a cloud of games and rewards. It can be distributed through auctions and sales through gambling websites.
Cryptocurrency
If you move ahead in technology and money transactions, you will hit a block. That block is no other than the blockchain. As the world of cryptocurrency rises, so do the concerns of money management all over the world. It is forecasted that it will become extremely easy to get away with black money in the form of cryptocurrencies. What can be worse? They are not even regulated with one organisation, it is power in the hands of people and what if they fail to manage the power. Although there are proper ledgers at place working overnight to record all the transactions, it still can be hard to track individuals involved in the theft.
Up till now, we have all learnt that money laundering is a complex process and can include many forms and types. This calls for some real study on scams that the world has witnessed already. Let us now discuss which tricksters (read criminals) were able to dupe the national security laws of money laundering. This is the history that saw some of the biggest cases of money laundering in the world –
HSBC
HSBC was one of the top firms that showed signs of money laundering. The organisation was tried by the senate. It came under the limelight in the year 2012 when the United States Senate triggered a search in its operations.
On further investigations, it was found that they were breaking AML laws. AML here is Anti-money laundering laws. It was found that the entity HSBC was found to be guilty of the following frauds and illegal activities.
Firstly, they offered banking services to clients hailing from Saudi Arabia, even after knowing the fact that the clients had contacts with terrorists. HSBC sanctioned money transactions from Iran and North Korea without raising any sort of ticket that signifies any issue with those transactions.
HSBC let a subsidy of them having relations with a Mexican counterpart go, even when that counterpart had ties with drug trafficking. HSBC ignored all the risky factors and let the relationship with such a threat of an organisation go without any issue.
The reports say that an estimate of about 881 million Dollars was laundered in summation. This was a huge amount and the entity was banned from any workings for the foreseeable future. HSBC was a reminder that every entity has to be regulated so that it runs according to the lines seated by AML laws. HSBC was fined $1.9 billion dollars for laundering money.
BCCI (Bank of Credit and Commerce International)
The name BCCI is an acronym for Bank of Credit and Commerce International. It is a name now long forgotten. It was however not the same in history. In the mid 19s, BCCI was the seventh-largest private bank in the world. Â In the mid-1980s the bank was found to be involved in some really serious business of money laundering and even drug smuggling.
BCCI was found with sums of money that were in billions in criminal profits. The name that is forgotten now is estimated to have hidden and laundered a sum of almost 23 billion dollars. This much money was laundered and the bank made a name for itself in the black market of thieves and money launderers.
It is reported that the bank was too picky of its clients, it had relations with some really big names in the industry. BCCI has been reported with relations with Saddam Hussain (Former military dictator of Panama Manuel Noriega) and Palestinian terrorist leader Abu Nidal. By 1990 BCCI was entangled in its own corporate structure and ran into obscurity. That was when the time came for its investigation.
The US Senate report says that Price Waterhouse started an investigation on this matter. The credit and commerce bank shut down its operations even before the investigations were completed.
Even after an early shutdown, the bank owed hefty amounts of fines due to the AML (Anti-money laundering) laws it broke. It was also reported that the CIA (Central Intelligence Agency) user accounts listed on the BCCI, to fund Afghan Mujahideen during their war with Russia (The soviet union) in the 1980s. On the land of money laundering accusations, the Bank of Credit and Commerce transferred about 20 billion dollars in money laundering
Nauru
Nauru Island
Nauru is the name of a tiny pacific island. It is about 1100 miles away from the coast of New Guinea. The place might be small and dingy but it is quite an epicentre of money laundering. This small land has been the go-to place for the highest-profile of criminals and gangsters. In the late 1990s, Russian criminal gang lords laundered about 70 billion dollars through banks that were registered in Nauru. Those banks were mostly called âShellâ banks.
Shell banks are the banks that exist only on paper and nowhere else in real life. They cannot be traced on a map, nor do they have any physical office/branch in real life. Nauru even allowed those banks to record transactions without naming the people behind those transactions. This was done to incentivise more and more transactions. The small land of the Nauru coast of Australia turned into a shell corporation heaven for the Russian mafia. The place is now only known for being a money-laundering favourable place after being a natural resource hotspot.
After the US treasury found out about the illegal money business going on in Nauru, they imposed heavy sanctions on that land. Only to surprise, it was found that the penalties were even more than the penalties imposed on Iran (Another laundering place).
With factors like those of Shell Banks, and recording money transactions without account names, cooked all this hassle. All of the factors above made Nauru a safe place for money launderers. The island has been blacklisted and all the shell banks that were once there, are deregistered on the spot. Since 2001, Nauru has taken steps to clean up its act and has accepted financial aid from Australia.
Standard Chartered
Standard Chartered is one of the biggest banks in the world. This humongous financial institution was accused of helping out the Iranian government to launder an amount of about 265 billion dollars. This huge amount was reported to be laundered as there were not enough/sufficient checks at places. This lack of governance of checks and looks made this big money to be transported illegally.
When it was investigated and regulated by concerned authorities, the organisation paid about 350 million dollars in fines in 2012. Standard Chartered also paid 350 million dollars again in fines and settlements in 2014 for not improving their AML (Anti-money laundering) face and compliance with the assigned rules. After that, they improved their AML sector within the organisation and since then, it has been on a check.
Pablo Escobar
All the Pablo fans out there, do you know how big that criminal was. Pablo Escobar, the most successful criminal ever known to known history. He was so rich and had money in such amounts that it is said once, he spent 1000 dollars in a consecutive week on rubber bands which were used to hold up the bundles of cash that he had. Not to mention, his business was drugging and although the business was illegal, he was a master of the trade.
He was so good at the drugs business, it is reported that he once in time-controlled about 80 per cent of the worldâs drugs business (Cocaine trade). With such a hold over the most profitable business, he had loads of money. And because of that, he was forced to make more ways to launder his money to look legitimate. He was so into money laundering that probably the epicentre of his business was just that, âCash Launderingâ.
The recipe that he followed in getting all the money back to himself was simple. He paid bankers some bribe to which they returned the favour by turning his black cash into legitimate money. In 1989, reports say that his personal fortune was worth about 9 billion dollars, which made him the seventh richest person in the world at that time. He died in a gunfight in 1993 with Colombian authorities.
Wachovia
It is now a part of Wells Fargo, Wachovia was among the biggest banks in the United States in the 2010s. The bank was found to have allowed drug cartels in Mexico to launder close to US$390 billion through its branches during 2004-2007. The drug cartels had one job specific to money laundering. They laundered money (Proceeds) that came from selling drugs in the United States to the other side of the Mexican Border. Then, they used money exchangers to deposit the money into their bank accounts in Mexico.
“Wachovia’s blatant disregard for our banking laws gave international cocaine cartels a virtual carte blanche to finance their operations,” said Jeffrey Sloman, the federal prosecutor. Yet the total fine was less than 2% of the bank’s $12.3bn profit for 2009. On 24 March 2010, Wells Fargo stock traded at $30.86 â up 1% on the week of the court settlement.
At the Mexico border, the requirements were not clear and regulated which added to the money laundering situation. The regulatory requirements with regard to the source of funds were not on par with current standards. Later on, the money that was transported to Mexico was roped in back to Wachoviaâs accounts in the US. The total money laundered by this bank amounted to 390 billion dollars.
Now you must be thinking about what happens if the situation is not controlled, and that is a legit question. If money laundering is not stopped, it can raise havoc. How? Let us find out –
When some money is unaccounted for and lies around in society, it can be used for any purpose. The intentions can be constructive as well as destructive. Depending on the purpose, it can create a ruckus for the society we live in.
As we all know, money can be used as an incentive for many things, it can be an incentive for good things, hardworking and it can also be an incentive for bad things for society. In that situation, the social and political cost of such money can be severe.
In addition to that factor of thought, money laundering can weaken society as a whole. It can lower the boundaries of social and collective ethical standards. In developed countries, it can be efficient and effectively used in terrorism and any sort of destructive activity or behaviour.
On the other hand, if unaccounted money or money laundering is in an underdeveloped country then it can be serious damage to the progress of the country and the integrity of such a nation. For example, those examples can be disastrous in the second most populous nation, India.
What are the Precautions for Money Laundering?
There can be precautions as well for this money laundering influence. These precautions can lead to a safer environment for all, the government and the citizens. Let us discuss some of the precautions that are advised by experts and are worth a read –
Tax Evasion
First of all, the process of one laundering starts from the intention of tax evasion. At the heart of the issue is hiding the income to save some pennies of taxes. This has to be completely stopped. Tax evasion has to be stopped in all steps of production to consumption. This will help make people aware of the monitoring. This will also reduce significant money movements from one place to another.
Local governments should be held accountable for the money management of an area. They have to be fully authorised as well to do their duties on full throttle. For this purpose, the government and the media can work hand in hand to be more effective in maintaining the secrecy of sensitive topics.
Reducing Tax-free Earnings
The private sector has to be regulated as well. Cartels should be prevented and any sort of underground economy should come to an end. This can be done by reducing the tax-free earnings as much as possible in nature. This can be hard for developing countries, as they rely on taxes for development but they can do small changes as well.
AML(Anti-money laundering)
Businesses can protect themselves by strictly accounting for all the transactions as well as adhering to the AML(Anti-money laundering) norms. For which they can use the AML software available in the market such as Sanction scanner and many others available throughout the internet.
AML (Anti-money laundering) Initiatives
Throughout the article, we have mentioned something called AML, we did mention it but what it is actually? Anti-money laundering is a set of initiatives that rose to global prominence in the year 1989. They were formed by a group of companies and countries who were concerned about the issue. It is an entailing part of the Financial Action Task Force (FATF). The mission of which is to prevent and control the money transactions that are unrecorded and benefit from money laundering all around the world. In October 2001, following the 9/11 terrorist attacks, FATF expanded its mandate to include combating terrorist financing.
Another important organisation that controls the fight against money laundering is the IMF or the International monetary fund. Just like the FATF, the IMF also runs on a mission of preventing money laundering as they assert influence on countries and corporations to act according to the accepted international standards.
Laws like these are effective and work in a manner that prevents market manipulation, trade in illegal goods, corruption on public funds and even tax evasion on a global level (large scale).
Laundering is a serious crime and is done in probably every country in the world. Not only is it illegal but it is also immoral. It is such a serious problem that it encompasses both the white-collar and the street-level criminals. The roots of this business run deep in many parts of the world. With this rooted problem, it can be a serious hindrance to the development of countries and even corporations at a smaller level.
There are many international corporations like the FATF (Financial Action Task Force) and IMF (International monetary fund) trying to influence these numbers. Reading the history of money laundering, it is threatening that it can happen today too. In this world where we talk about decentralised currency as the new currency. It is going to be hard to prevent such happenings in todayâs world. It does not just harm corporations and societies but even the society and constituents of society.
FAQ
How does money laundering cash work?
The money that needs to be laundered is carried into foreign bank accounts in small amounts and then is transferred back to where it came from.
What is the most common way to launder money?
The most common ways to launder money is investing in gold, investing in stocks or transferring money to foreign bank accounts.
Is laundering money illegal?
Yes, Money laundering is illegal as the laundered money can be used for illegal activities.
The world is moving really fast. It was never in history that we had the luxury to learn about anything in the world from the comfort of our homes. The information that we deal with (on a daily basis) is immense. All of this just doesnât come up out of the blue, it has a price that we pay every day. The price is some of the other natural resources or some non-replenishable resource. But now the world is witnessing the shift. The shift from non-sustainable methods of human activities to more sustainable methods.
One of the pioneers of such a transition is EVs. It is an acronym for Electric Vehicles. It is forecasted that these cars (or vehicles) will be the future of not just public transport but will be the future of private transportation as well. With that being said, everyone is trying to get into the business of EVs. Every other car manufacturer is making their cars electric.
In an immensely population-dense country, India, the sector is getting ready to launch. Top-notch companies are planning to disrupt this market with some innovation. Except for one carmaker, Maruti Suzuki. The largest carmaker in India will refrain from entering the electric vehicles market in India. This article talks about what are (and could) be the reasons for such waste of potential.
Maruti Suzuki Plans about launching EV in the Indian Market
First, let us give you some context. It has been reported that the countryâs largest carmaker, Maruti Suzuki has plans that they will not enter the electric vehicles markets in the short term. This trend of refraining will continue till the market is feasible. Chairman R C Bhargava told shareholders at the companyâs 40th annual general meeting.
Yes, this news surfaced all over the internet. It shook not only the investors but people who had hopes for the company to launch EV. Adding to the news, RC Bhargava, the chairman, told the investors and shareholders that the carmaker has no plans to enter the EV market in the short term. They will only enter the market when the market will show some feasibility in the future. This was seen as the main highlight of the 40th annual general meeting that was held last year.
Adding to the notion of not entering the EV Market, Bhargava said the governmentâs focus is on developing the two-wheelers with the primary goal of electrification.
In the product segment of two-wheelers, Hero and Ola have been innovating. We all know that Hero is trying its best to enter the electric vehicle market and on the other hand it is developing infrastructure for charging electric vehicles.
Ola, the ride-sharing and taxi service startup is also looking forward to an electric future, so much so that they recently launched their product called the âOla Electric”. Ola electric is a two-wheeler that runs on electricity. Thus, apart from the product segments of the two-wheeler category, remains the passenger vehicle segment. This is the primary market of Maruti Suzuki and they are quite unaffected by the newborn electric vehicles in this segment.
Bhargava added that they know that the sale volume is minimal and it is not in much of a magnitude. This easily predicts that folks at Maruti Suzuki are trying to play it safe rather than just jump on what is the hottest trend in the market right now.
In the passenger vehicles segment, a few manufacturers have brought EVs, “but the sales volume is minimal, and it has had no impact on the market share of Maruti Suzuki,” Bhargava said.
Annual EV Sales in India
Another fact that is baffling the EV enthusiasts is that other vehicle makers like Tata Motors, Mahindra and Mahindra are already running fast in the EV race.
Tata Nexon EV
They are so much into Electric vehicles that they have already manufactured a little over a dozen battery-powered vehicles. That trend in those carmakers can be seen among various product segments.
They are even forecasted to be more active in the market in the short future. Up till 2025, they will lead the Indian Electric Vehicles market by much more than the then-newcomer in the EV market, Maruti Suzuki.
Why is Maruti Suzuki Refraining from the EV Market?
When asked why the country’s topmost car maker is refraining from the EV market they replied with a rather satisfactory answer. Bhargava mentioned that Maruti Suzuki is currently planning to focus on the Electric vehicle segment, without making a loss on its basic and natural operating cycle. This was what he replied when investors enquired about the Electric vehicle segment.
In response to queries from several shareholders, Bhargava said Maruti Suzuki is looking at the electric vehicle (EV) segment without making a loss on operations.
âMaruti Suzuki is the leader in the passenger vehicle industry, and it fully intends to have leadership in EVs. But to be sure, Maruti Suzukiâs focus in the short term is CNG and hybrid vehicles â until the time EVs reach a certain scale. On its part, the companyâs sister arm â Suzuki – and Denso and Toshiba, have already started working on localization of lithium-ion cells and engaging with the vendor fraternity to have a deeper localization to deliver an EV âthat is accessible and delivers enough scale to add to the bottom line.â Â he added
After the statements by Maruti’s Chairman, one thing is clear that Maruti Suzuki has hopes for electric vehicles, but it doesnât want to just jump right into the trend. It is waiting for a little more stabilised market in the Electric vehicle market and until then, Maruti is cleansing the company to better fit the EV market in the future. It is not scared of the innovations but just doesnât want to regret any early investments. After all, it is such a big organisation and also holds a lot of expectations.
When will Maruti Suzuki Enter the Indian EV Market?
Suzukiâs parent company had said an India special EV might be ready by 2025. Regarding issues related to climate change, zero-emission and carbon neutrality, India has to follow its own schedule and not be pressured by the timelines set by more developed nations in the world, the chairman asserted.
âYes, we must work with the rest of the world, we must be concerned about climate change, we must go on to reduce emissions. But we and the world have both to recognise the disparities in income and living styles and the disparity in the consumption of energy per capita in the developed world and India,” Bhargava answered.
The company will be launching an all-new sports utility vehicle next year to expand its footprint in the fast-growing segment in the mainstream market. The development work on the vehicle is underway, which will be introduced shortly. âOnce we have the SUV next year, we will have more market share in that areaâ, he added.
It is clear from the above statements that the company clearly understands what the Indian user would want. It is true that the whole of India is not readily agreeing on shifting to electric vehicles and it will take some time. Until then Maruti plans to do more research and development on prospective investments.
Current Situation of Maruti Suzuki
If we look at the current situation in the product segment, we will find that Maruti Suzuki is the dominator of the vehicle segment. It has, in the local markets, very well accepted cars like that of Wagon R, Swift, Baleno, Vitara Brezza, Ertiga, XL6 and the S-cross. On the other hand, Hyundai (Korean rival) has made good growth in the SUV category.
Top Best-Selling Cars of December 2021
Separately, Bhargava said while Maruti Suzuki has faced some loss in production due to the shortage in availability of semiconductors, it is not of major concern. The current shortage of semiconductors facing the automobile industry is temporary, partly caused by the outbreak of the coronavirus pandemic and is expected to be over by 2022.
“Meanwhile, there has been a bit of a hit on the production of vehicles, and we have had to adjust, but there is no major loss that we have to be concerned about,” Bhargava said.
Bhargava has a thought process. That is, he thinks that India has to look after the citizens’ needs and wants. The only way to do that is to increase the lifestyle of individuals. They have to be better equipped with income to spend and live a decent life, this will create new demand for not just electric vehicles but everything else.
Not only this, he believes that this will also help in catching up with the rest of the world. The electronic vehicle is a concept that was first released in the outer boundaries of the world where technology is developed. They also enjoy a slightly better lifestyle than most Indians. EVs have to be tailor-made for Indians.
“It will require a much higher per capita energy consumption even if we adopt much more energy efficient means of consumption”. Bhargava pointed.
Bhargava further said: “And to do that we cannot follow everything which the West does. We have to make our own schedules and programmes and ensure that we do not adopt rules and regulations, which results in the people of India not being able ever to come up to the point of levels which they need to come up with to reduce (the gap) with the rest of the world.”
The above article points to the boundaries and the centre of the news piece that showed everyone. It is true that the homegrown vehicle maker Maruti Suzuki has hopes and aspirations for Electric scenes in India. But it surely does not want to do that in haste. Maruti has reported some slight losses due to manufacturing issues due to the unavailability of semiconductors. This however is not a big issue and they are getting better everyday. Maruti plans to be a little more stable in operations before they start investing in the Electric vehicle segment.
The news smoke came even when rival companies like Tata Motors and Mahindra and Mahindra had lined up a lot in the Electric vehicle domain. It is forecasted that up until 2025 they will launch some dozen more EVs for citizens.
To those queries, the officials have already answered the raised questions. Bhargava said Maruti Suzuki is looking at the electric vehicle (EV) segment without making a loss on operations. India is a special market for everything, not just in the segments of the electric vehicle.
One who understands the markets and the needs of Indian customers are set to rule the market. Maruti over the years have done really well in the passenger vehicle segments, and this is good proof of their understanding of the Indian scenario.
FAQ
Is Maruti coming with electric cars?
Yes, Maruti has plans to enter the Indian EV market in 2025.
What is the price of the Maruti electric car?
The Wagon R electric will be priced at 10 lakhs in India, which is slated to launch in 2025.
Why is Maruti not making electric cars?
Maruti Suzuki’s chairman, R C Bhargava stated in its annual general meeting that, They will only enter the market when the market will show some feasibility in the future.
Owning a luxury car is one of our childhood dreams for most of us. Be it owning a normal car or a luxury beast on the road, a four-wheeler is one of the goals that people dreamt to achieve in their life. Luxury cars are quite common in the cities of UK, US and UAE but now they are gradually becoming familiar in the streets of the cities of India as well.
Whatâs better to choose your dream car from a showroom that has some of the biggest collections of luxury cars? In this article, we are going to talk about Indiaâs largest buyer and seller of luxury used cars that is Big Boy Toyz. So without any wait, letâs look at how does Big Boy Toyz make money.
âTake care of your car in the garage, and the car will take care of you on the road.â
Big Boy Toyz is also known as BBT was founded in the year 2009 by Jatin Ahuja. His goal was to transform and make the previously owned exotic car business big in a country like India. One can find cars like BMW, Audi, Range Rover, Aston Martins, Bentley, Lamborghini, and others parked in their showrooms.
Jatin Ahuja, Big Boy Toyz Founder
At first, it was a one-showroom company based at Gurugram, it is also where the headquarter of the company was situated. Now, it can be found in Hyderabad and Mumbai as well. Ahuja started the business with an investment of just âš70,000. It became so popular that, in its very first year it experienced a turnover of âš6 Crore.
Big Boy Toyz Showroom
Over the years the brand has secured to expand its name over the industry and secured its name in the list of top businesses in the country. In 2017, it gave an opportunity to its customers to buy luxury cars online, a first for any company in the country. Not only that, but BBT also started dealing with Premium motorcycles like sportbikes, cruisers, and other exotic two-wheelers in 2019.
By 2023, it is said that Indiaâs used car market is to cross the $25 billion mark and Bigg Boy Toyz seems to be leading this industry with its strong calibre.
Target Audience of Big Boy Toyz
Jatin Ahuja started this business with premium car dealers. Since 2009, BBT has supplied over 6000 cars to people from different cities of India. The prices of the cars are somehow between âš50 Lakhs to âš4 Crores, naturally, they target the customers who are celebrities or are from the upper-middle-class that want on getting luxury in their collections of four-wheelers.
Jatin Ahuja with Bollywood Actress, Neha Dhupia
These people are free from the stigma of buying pre-owned cars and are at the age of 35 to 50 years. With its price range, it has now started working on making luxury cars accessible to other sections of society as well.
Business Model of Big Boy Toyz
BBT mainly focuses on selling luxury four-wheelers to the customer and that is mainly how they make money. The quality of the cars that they sell to their customers is what makes them more unique. Their USP is all about making their customers happy.
Price definitely plays a big role in attracting customers but apart from that, another thing that plays a significant role is how pre-owned cars are owned by some of the biggest celebrities in the country. To be able to drive a car that is driven by their favourite celebrity is quite a good offer to be missed.
How does Big Boy Toyz Make Money?
Celebrities from the Bollywood industry and sports industry are some of the major customers of Big Boy Toyz. They mainly buy and sell their cars as well, because they lose interest in the luxury beast quite quickly than expected when another catches their eyes. Â
With its showrooms in three of the business cities in the country, it has been able to attract the attention of the customers quite well. In a year, it has been able to sell 340 to 400 cars easily. They mostly sell one to two cars a day. This is how the company generates revenue mostly. It has also partnered itself with Dharma production and with MTV Music Television Channel;
What is Unique About Big Boy Toyz?
Some of the features of BBT that make it unique are listed below:
It mainly deals with buying and selling luxury cars and now some bikes as well.
Every car that is in the showroom of BBT goes through 151 quality checks before it is certified by BBT.
Big Boy Toyz provides all the insurance history of the preowned cars to its customers.
BBT also takes note that all the cars have not run more than 20,000 KM.
BBT ensures that none of the carâs meters is tampered with or face any kind of problems and is as good as new.
Revenue of Big Boy Toyz
The revenue of Big Boy Toyz was between âš100 – âš500 Crore as of the financial year 2020. Surprisingly even during the Covid, the brand was able to sell over 140 luxury cars in just the first half of the fiscal year. BBT experienced a 48% increase in the demand for luxury cars post the first lockdown during the Covid.
BBT is a kind of company that is literally giving an opportunity to their customers to own their dream cars. The best part is that, even after the Covid lockdown, they experienced a surge in the demand for luxury cars. The company is proving its mettle every day, by growing its business in the tough time, it is surely going to lead the pre-owned car market in the near future.
FAQ
How does Big Boy Toyz make money?
BBT sells preowned cars to customers, its main target audience is celebrities or the upper-middle class who are looking for a preowned luxury car. They sell one to two cars a day.
What is the business of Big Boy Toyz?
Big Boy Toyz mainly focuses on buying and selling pre-owned luxury cars.
Who is the owner of Big Boy Toyz?
Jatin Ahuja is the founder and managing director of Big Boy Toyz.
Infosys Limited is one of the most well-known Multinational Tech Companies in India, headquartered in Bengaluru, Karnataka. The company is known for services like Business Consultation, IT and Outsourcing.
Infosys was established in 1981 and is now NYSE listed global consulting and IT company with more than 2,49,000 employees all around the world. The company is also considered to be the second-largest IT Company in India after Tata Consultancy Services. Infosys is also ranked 602nd largest company in the world according to the Forbes Global 2000 ranking.
Infosys first started out with a capital of $250 but now has grown into a company that generates over $14.22 billion in revenue in the year 2021, with a market capitalization of approximately $90.25 billion.
The company is over 40 years old and made a lot of development for the IT industry in India over the past years. It has played a role in the countryâs emergence as a hub for software services. The company presently has over 123 development centres all over the world but is well known in countries like India, the US, China, Australia, Japan, Middle East and Europe.
Over 60%, 24% and 3% of its revenue was generated from North America, Europe and India in 2019, while the rest 13% comes from other parts of the world. Infosys is the first Indian company to be listed on NASDAQ. It has also created many salaried millionaires over the years.
The company works in domains like finance, insurance and manufacturing and provides services like NIA (Net generation AI platform), Infosys Consulting, Infosys Information platform, EdgeVerve Systems, Panaya Cloud Suite, Engineering services and digital marketing. Another well-known product is Finacle which is a universal banking solution.
Infosys wasestablished in the year 1981 by N R Narayan Murthy and six other engineers in Pune, Maharashtra with a small capital of $250.
Know everything about Infosys Business Empire
By 1987, the company had already opened its first international office in Boston, US. In 1992, the company went public so had to change its name from Infosys Technologies Private LimitedtoInfosys Technologies Limited.Later, the company was renamedInfosys Limited in 2011.
The company received the ISO 9001/TickIT certification and opened a development centre at Fremont in 1994. In the next year, Infosys also opened its first European office in the United Kingdom and will also set up its business practice.
The tech company established the Infosys Foundation and was assessed at CMM level 4 in 1997. It wasnât until 1999 that Infosys got listed on the NASDAQ. Infosys becomes the 21st company in the world to achieve a CMM level 5 certification and opens offices in countries like Germany, Sweden, Belgium, and Australia.
Infosys has its offices in France and Hong Kong and development centres in Canada and UK in 2000 and has also expanded its offices in UAE, Argentina in 2001. The same year the company goes on to launch Finacle which is a universal banking solution.
In 2002, the company expanded its offices to countries like Netherlands, Singapore and Switzerland. The company finally reached the US $1 billion mark in revenue and then launched Infosys Consulting Inc in 2004.
Infosys crossed the $5 billion revenue mark in 2010 and even gets listed on the NYSE in 2012. According to Forbes, Infosys became the world’s most innovative company. It provided $250 million to help the âInnovate in Indiaâ and in order to support startups in India in 2015.
The company finally launched the awaited Infosys Maya. It is a platform that helps drive automation and innovation in companies. It has also launched Skava Commerce, a modular for e-commerce platforms in 2016.
In 2019, Forbes ranks Infosys as No. 3 in the best-regarded companies list and also launches the Infosys Live Enterprise Suite. In 2020, the company targets to attain carbon neutrality and even announces its ESG Vision 2030 where it would measure targets across the environment, social and governance.
Infosys Limited has been ranked number 1 in the 2021 HFS Top 10: Banking and Financial Servicesas per The Best of the Best Service Providers report.
EdgeVerve is one of the most popular Infosys subsidiaries that is known for its products and services. It is an innovative software product and offers an on-premise or cloud-hosted business platform. The company is a global leader when it comes to Automation and AI.
The company works in sectors like banking, digital marketing, interactive commerce, distributive trade, and credit servicing, and even enterprise buying and customer service. The company has a portfolio of AI which includes Infosys Nia, automation with AssistEdge and business applications like TradeEdge and ProcureEdge.
EdgeVerve also helps other companies in developing deeper connections with stakeholders and make innovations. Nowadays global companies from financial services, insurance, retail, life science, manufacturing and telecommunication use the companyâs products.
One of its most known services is the Finacle, a universal banking solution that serves over 547 million customers nearly 16.5% of the worldâs adult banked population. By providing these services the company is creating possibilities and helping other enterprises grow.
Panaya
Panaya – Infosys Subsidiary
Panaya is an international subsidiary of Infosys which is a software company based in the US. Some of its popular products and services are automated code remediation, collaboration test management and test execution and ALM acceleration.
The company is a leader in providing Automation technology, especially to large-scale enterprises. Panaya is a popular software as a service (SaaS) company and has its presence in the US, EMEA and Asia and also has its subsidiaries in Israel, Germany, Japan and Australia.
Infosys BPM Limited
Infosys BPM – Infosys Subsidiaries
Infosys BPM became a subsidiary in 2002 and is known for business process management. The company mainly operates in countries like India, Poland, Netherlands, South Africa, Brazil, Mexico, the US, Puerto Rico, China, Philippines, Australia and others.
The company focuses on providing end-to-end outsourcing and other benefits at lower costs, productivity improvements and process reengineering. The company also has other subsidiaries under it that are Infosys Portland and Infosys McCamish Systems.
The company is headquartered in Bengaluru, Karnataka and is mainly popular for integrated outsourcing and transformative services. More than 60% of the companyâs business comes from the overlapping clients of their parent Infosys.
Infosys BPM has so far opened 33 delivery centres in 14 different countries and 44,443+ employees from more than 110 nationalities. The company has also won over 60 awards and recognition in the past 5 years.
Infosys Consulting Holding AG
Infosys Consulting – Infosys Subsidiaries
This company was initially called Infosys Lodestone. It is a global company known for providing consulting, technology, outsourcing and next-generation services. The company is now a global advisor to leading companies on things like process engineering and also managing tech-enabled transforming programs.
The company offers various customized solutions to the businesses that their clients face and also helps them renew their existing IT landscapes along with bringing in new technology and innovation to their business.
One of their most well-known services is the Infosys Aikido which includes working with clients in order to leverage the knowledge of systems. The company has so far conducted over 150 design thinking workshops and is actively engaged in 50 plus global companies and using Aikido to transform programs.
Infosys consulting holding tries to combine human-centric approaches with advanced technology and help companies to reimagine their future and create lasting business value.
Infosys Public Services Inc.
Infosys Public Services – Infosys Subsidiary
The company is a US-based subsidiary of Infosys known for providing services like business consultation, technology solutions and even advanced digital service.
Infosys Public Services, Inc. helps public sector organizations mostly in the countries like the US and Canada to stay ahead by innovating new things.
Their services allow their customers to renew their companies and come up with new avenues to generate value. The company has over 40 plus years of cross-industry experience and is also adapted for the public sector. The company also provides flexible delivery models for predictable and on-time execution.
Infosys Consulting Limited
Infosys Consulting – Infosys Subsidiary
This is another well-known international Infosys subsidiary that was established in Brazil in 2009. The company is said to have many offices in cities like Sao Paulo, Rio De Janeiro and Nova Lima.
Infosys Consulting helps its clients by providing business solutions, leverage technology, and global infrastructure. Their main vision is to show courtesy to their clients, employees including vendors, and society at large.
The company has so far been respectful and successful in Brazil and is also considered to be one of the fastest-growing subsidiaries of Infosys. With the help of this company, Infosys has managed to expand in the Latin American market which is important as the region has huge potential in the IT and enterprise applications market with a booming economy.
Kallidus
Kallidus – Infosys Subsidiary
Kallidus Inc, a US subsidiary of Infosys, is headquartered in San Francisco, California. The company is known for developing and providing mobile commerce and also helping its clients with digital marketing.
Kallidus is good at developing applications, websites and various other digital shopping experiences for devices like mobile, tablet, desktop, etc. It also helps its clients at all stages of the value chain including design, implementation and managed services for retailers.
Kallidus owns SkavaONE, which is a cloud-based tech platform well known for creating mobile commerce websites, mobile apps, online marketing campaigns and social media experiences for their clients.
This also includes services like Mobile commerce suite, in-store suite, digital commerce suite, and Skava studio. The company offers maximum flexibility in e-commerce integration with API, raw data adaptors in order to create an Omnichannel experience.
Noah Consulting LLC
Noah Consulting – Infosys Subsidiary
Noah Consulting, LLC is a global leader when it comes to management consulting services. The company helps oil and gas companies in managing, creating and deploying the information solutions for the business to generate value from their oil and gas assets. It focuses on providing the best data management, data warehousing, data integration, business intelligence, information quality and even data management solution.
The company has over 15 years of experience in delivering practical solutions to the most complex information challenges the industry faces. Noah Consulting has its headquarters in Houston, Texas with over 50-100 employees. The company has a deep knowledge of the industry, information strategy planning, data governance which is why it is one of the most important subsidiaries to Infosys.
Infosys is now a successful conglomerate known in more than 50 countries and popular among countries like India, the US, China, Australia, Japan, Middle East and Europe. The company has played a main role in the development of the IT Industry of the country and was pioneered by a lot of innovations.
The company is now a global leader when it comes to consulting, technology, outsourcing and next-generation services. They help their clients to always stay ahead in the industry by helping them attain the business trends by providing various solutions.
FAQs
What are the main services of Infosys?
The company is known for services like Business Consultation, IT and Outsourcing Services.
Where is the headquarters of Infosys?
The headquarters of Infosys is in Bengaluru, Karnataka.
CRED is an Indian-based fintech startup and a Unicorn company. It was founded in the year 2018 and has its headquarters in Bengaluru, Karnataka. The main feature of this platform is letting users pay their credit card bills through the mobile application and providing rewards to the customers.
The company is very well known for its creative commercials which are quite different. As the recent advertisement starring Rahul Dravid went viral, Letâs understand more about Credâs recent commercial and how it went viral over the internet.
The recent commercial which was rolled out by CRED has captured the limelight. The commercial has achieved what the best celebrities and advertisers couldnât possibly do. It has left the advertising industry in a shock.
CRED’s New Ad featuring Rahul Dravid
In the recent CRED advertisement, the former captain of the Indian Cricket Team is shown to become violent because of the Bengaluru, Indiranagar traffic. Indiranagar is one of the main places of Bengaluru city and it is widely known for its hours of traffic. It is also the place where the headquarters of CRED has located as well as the neighborhood where Rahul Dravid has spent his childhood.
In the advertisement, we can see that Rahul Dravid loses his cool personality and becomes violent. He takes his cricket bat and breaks the rear view mirror, acts like a maniac and throws coffee. He shouts saying that “Indiranagar ka Gunda” has caught the eyes of the audience.
In the description of the CRED new advertisement, Rahul Dravid says the following. Hi, this is Rahul Dravid writing the description for this video. Sorry, I lost my temper there and I am meditating these days. Well, I am writing this to let you know that CRED truly rewards you every time you pay your credit card bills through Cred. They are good people.
Rahul Dravid is known for his cool nature and personality. The always laughable and cool person losing his temper, shouting, and breaking the rearview mirrors is a brilliant play for his personality. The commercial has left a shock amongst individuals wondering whether Rahul Dravid would lose his cool nature.
The advertisement had managed to garner a million views across the social media platforms and has let a lot of people wondering âRahul Dravid ko gussa bhi aata haiâ (Translation: Does Rahul Dravid even get angry?). The commercial has amused a lot of people certainly the ones who know Rahul Dravid.
The commercial even grasped the attention of the current Indian captain, Virat Kohli, as he tweeted for the video saying that he had never seen this side of Rahul Bhai with an exploding head emoji.
The former test player and Karnataka teammate Dodda Ganesh had brought up the incident when Rahul Dravid had got angry last time. He said it was during the 1998 Ranji trophy Semi Finals against Hyderabad. He tweeted saying that the last time Rahul Dravid shouted like this was from the dressing room of the Karnataka cricket team and he was at the receiverâs end.
— ಌŕłŕ˛Ąŕłŕ˛Ą ŕ˛ŕ˛Łŕłŕ˛śŕł | Dodda Ganesh (@doddaganesha) April 9, 2021
It was the current Indian Captain, Virat Kohli who first shared the CRED new ad and within seconds it became the viral video of 2021. Brands started tweeting about the commercials using it to promote their own brands. Brands such as Dunzo, Zomato, boat, Spotify, OYO, CARS24, Radio city, HDFC bank, Paytm, Pepsi India, Rajasthan Royals, etc. tweeted using the commercial. Here are some of the tweets from the famous brands to promote their own franchise.
Dunzo
Calling all angry gundas of Indiranagar to get out of traffic Jammys, sit Toit at home, and order in some Chakum Chukum. You chill Bob's, we'll be your Sarathi and come Humming to your Corner House with a Shalimar delivery. Stepping out should always be Plan B.
Abhishek Ponia who is an Angel Investor from Mumbai tweeted on his Twitter handle saying that he thinks that Virat Kohliâs tweet sharing the CRED advertisement was a paid engagement. He adds on to this point by laying down reasons such as the CRED ad was not seen anywhere before and it did not even exist on the internet before Virat Kohliâs tweet. He has said that even CREDâs Twitter handle did not post the ad.
Why I think Virat Kohliâs tweet sharing the CRED ad film was a paid engagement … (& not organic):
He also added on saying that Virat Kohli normally doesnât tweet during the matchday as the day the video was released was the first IPL match between RCB and MI. He said that most of Virat Kohliâs tweets were after the match or on non-match days. He would rarely post during the match day and it would be about match prep talks and deciding to share something different all of a sudden raises doubts.
CRED is known for spending heavily on cricket. We canât expect it to be a mere coincidence that the ad was released on the same day when Virat Kohli had his first match of the IPL 2021. What do you think about this? We would love to know your opinion. Do share your comments in the comments section below. Until then have a good time reading articles on Startuptalky. Happy Reading.
The Fast-moving-consumer-goods (FMCG) is quite an established market. These industries have always proven themselves worthy of the consumers’ purchasing and reliable choice. When looking a little back in time, FMCG was considered wrong for entering the business industries. However, with time, many young businessmen or entrepreneurs put their foot in the direct interaction with consumers regarding the product, and shockingly, it received great acknowledgments and achievements. This came out to be the FMCG business model.
This kind of business model interacts directly with the consumers by cutting out the retail and charging at wholesale rates. This also supports and helps the FMCG players with the opportunity to establish their position in the market. With the FMCG business model, different categories are discovered and some great innovative types of business models. FMCG industries work mainly on the e-commerce platform.
Looking at these facts, it’s likely to say that the FMCG industries possess great kinds of business models and promote innovative contemplation. Through this article, we would explain to you how FMCG industries make money along with some distinct business models.
FMCG means Fast-Moving consumer goods. The direct-to-consumer business encompasses highly demanding products, sells rapidly, and comes at a very reasonable price. These are also known as Consumer packaged goods (CPG). The products in these industries are very fast-moving as they are convenient to deliver and sell very quickly from the stores and supermarkets because of the daily usage in our life.
The FMCG industry includes some of the biggest brands worldwide. Such as NestlĂŠ, PepsiCo, JBS, Procter & Gamble, Coca-Cola, Unilever, and many more. It’s always advantageous to work in this industry as it brings out great career opportunities.
FMCG industries reached up to US$ 52.75 billion in FY18 and by the time of 2020, it rose to US$ 103.7 billion. With the sector of food items, hygiene, rural areas and health; the FMCG industries have grown with a 7.1% increase in the last 2 months of 2020.
When the product demands increase in the rural sector, it brings out a great revenue rate for the FMCG industry. The rural area contributes around 36% pg total FMCG industry spendings. As the government also put huge effort into the hygiene and health of the rural regions, the FMCG industry gained up to 10.6% of growth recovery.
The government initiatives for the low unemployment rate, high agricultural produce, and reverse migration for the advancement of the rural areas. When such initiatives are taken, the FMCG industry gains a great amount of profit in hand.
Growth of FMCG Market size in India
FMCG Business Model
Let’s take a brief look at some of the data-driven business models of FMCG Industries.
Premium Service Model
Premium Service Model offers great consumer services. It provides a premium fee that is linked for the customers to sign up. It possesses substantial benefits and encourages the customers to sign up.
Through the increase in business insights, the retailers gain the incremental revenue that targets the customers more consistently and brings functioning modifications to them. Premium Service Model promotes customers loyalty, enhances sales, and has the average basket size.
Differentiator Service Model
Differentiator Service Model offers some very heightened benefits to the customers and also offers the chance to purchase the same times again. Moreover, it gives rewards that boost up the purchasing tendency. Â
Differentiator Service Model guarantees good customer loyalty and increases the basket size by purchasing the same items again and again. The retailer, however, gets access to the minute customer’s data such as the email, contact details, history, and many others.
Return on Advantage Model
Return on Advantage Model also referred to as the Competitive Advantage Model focuses on driving the business insights for the growth of new products by combining the internal transactional data with the third party data. This also targets the experiences between the online and offline platforms and for better customer segmentation.
This business model targets customer segmentation to enhance its capabilities. Through this, the purchasing patterns are identified and assembled to gain a better possibility of targeting the customers.
FMCG Industries has built a significant position in the market with its advanced product awareness strategies and customer loyalty. Here are some of the marketing strategies of the FMCG Industry.
Multiple Branding
In FMCG marketing, Multiple Branding is one of the most fascinating techniques to hold up the potential customers and strong market position. In this technique, the company creates fair competition among the same brand product categories.
Product line Building
Product line Building offers a wide range of variety to the customers based on their choices by altering the names. A company manufactures the same product with different needs of customers and sells them accordingly. However, there isn’t any specific competition between such products as the target audience for each is distinct.
Huge Distribution Network
A huge Distribution Network is one of the very essential marketing strategies based on significant locations. This helps the product to reach every corner to gather its potential customers.
New Products Development
The company often modifies its products and then removes the old inconsistent ones. This helps them to maintain the competition and standards in the market. In this strategy, the company kept on researching and developing new features in their existing products. After modifying the product according to the consumer’s needs, they replace the older ones with these.
Flanking
Flanking is one of the very interesting FMCG marketing strategies. It sells the same product in different volumes and packaging. This helps the consumer to stick by the brand and purchase the product according to their favorable need. This brings a good option and probability for consumers to purchase the product.
Brand Extension
Normally when a company has made its strong position in marketing, to keep it consistent the company manufactures more products with the same name but different features, to gain massive sales. Brand Extension strategy is very essential as it brings more value to the brand and reaches the target audience quickly.
Conclusion
The Fast-moving consumer goods (FMCG) industry possesses some very strong brand holding in the market. With its incredible strategies and plans, it brings out great reliable growth development. FMCG industries are one of the most advanced and popular industries. It calls out a different business model to gain the required upholding with its consumers. FMCG industries include some of the very prominent brands worldwide that prove their success in the marketing field.
FAQ
What is the biggest FMCG company?
Switzerland’s NestlĂŠ is the world’s largest fast-moving consumer goods company, followed by two US giants: Procter & Gamble and PepsiCo.
Which FMCG is the best?
Some of the top FMCG companies are Hindustan Unilever Limited (HUL), Colgate-Palmolive, ITC Limited, NestlĂŠ, Parle Agro, Britannia Industries Limited, Marico Limited and Procter and Gamble.
How do FMCG companies work?
In the FMCG industry, manufacturers often sell the goods to wholesalers, who sell them to the retailers, who in turn sell them to the consumers. This is a two-level channel.
Ankit Kedia is the Founder of Capital A, a new-age venture capital firm for early-stage startups in India. He launched the fund formally in 2021 after having spent the last 14 years as a second-generation entrepreneur in his family business â Manjushree Technopack Limited. Ankit has been angel investing since 2017 and Capital A is the formalization of this passion and his USP as an angel investor turned VC. He comes with a rich operating experience across the B2B space including in verticals like manufacturing, supply chain, healthcare, MedTech, fintech, and others.
At Capital A, the team is on a mission to back meaningful startups and founders looking for smart capital instead of just going after the valuation frenzy. They have also backed consumer startups with a solid product-market fit and impact. Their focus is on highly promising Indian startups across different industries and it has made 20+ investments over the last six months of its existence.
The following is an excerpt of the interview with Mr. Ankit Kedia, Founder & Lead Investor, Capital-A.
1. How was the year 2021 for you as an investor/VC?
The year 2021 was a solid one for investors. We saw an incredible amount of VC Capital being deployed across a highly diversified group of sectors. As far as Capital A is concerned, this was our maiden year and we have invested in over 20 early-stage startups across different sectors and have more in the pipeline for 2022.
2. How often do you bet on the entrepreneurs and not on the ideas? And when/if you do that, what quality of the entrepreneur usually makes you do that?
Given that we are an early-stage focused VC fund, we always end up in a dichotomy of choice between the founder and their idea. There is no binary answer for this. We have made bets on founders who are fresh out of college but come with great execution capability and zero experience. We have also backed seasoned professionals beginning their start-up journey after 10+ years of industrial experience.
Typically, we look for founders who have absolute clarity in their ideas and basic commercial acumen. If both these qualities exist in them, it is easier to assess the business. This is because we are assured that the founder knows their territory well. While an educational qualification from top business schools and engineering institutes is good, we have never used this as a prerequisite for evaluating investment opportunities.
3. What is a warning sign for you when investing in a startup?
If the founder keeps wavering on his/her product idea and wants to pivot even before having secured seed funding, it usually is a red flag. Another aspect that we carefully evaluate is the future-proofing of the business model in terms of technology and scalability. If either of these isn’t likely to exist in the next 5 years, we tend to hold off any further discussions.
4. What are some common biases you find in the Indian Startup ecosystem?
While investing, many VC founders are most likely to pursue the crème de la crème from IITs and IIMs who they feel are capable of executing and scaling up to large businesses. In my view, we need to look beyond this bias and consider those from the non-premier institutes as well to democratize the startup ecosystem. Another bias which many early-stage investors have is that they tend to back founders and startups with other bluechip angels or VCs as their investors. While this is a good background, it displays the lack of understanding and belief of the incoming investors. It also displays a piggyback approach towards investing. Although we also consider such startups, only a small percentage of our fund is reserved for Series-B investment.
5. What are your views on the Shark Tank India Episodes until now?
The Shark Tank show on Sony TV is an incredible start and will be a great way to get more and more entrepreneurs into the startup ecosystem. I love the section in which the sharks explain various VC jargon to viewers. From an investor’s point of view, I would like the producers to tighten the quality of startups pitching to the sharks and not just select those who are vying for publicity on national TV.
6. We are seeing many startups exiting with IPO, whatâs your opinion on that? How is it going to change the ecosystem?
Indiaâs startup sector has seen a record number of IPOs in 2021. The reason is quite simple. There is a lot of pent-up appetite for investment amongst global investors. Many companies are also looking at leveraging the stock markets that are bullish about a strong recovery from the pandemic to fund their expansion plans and achieve financial security. The ecosystem will see an enormous amount of global capital being poured into the startup space in India. The pandemic-induced lockdown led to a record high adoption of digital technology, thereby helping startups fuel their growth. There is a renewed confidence amongst the investors and IPOs will become a realistic exit option for investors.
7. More than 42 unicorns in 2021. What do you think caused this wave? Is the valuation justified according to you?
India stands among the top 3 countries (behind US and China) witnessing a surge of unicorns. This surge can be explained by the massive interest from global investors aspiring to secure their territories within the Indian startup ecosystem. Some innovative startups amongst the unicorns including Zetwerk and Apna which made it to the list due to their offerings. There are a few unicorns that commanded ridiculous valuations. In my opinion, they were just fortunate to be in the right place at the right time.
8. How can we support/ enable entrepreneurs in tier2 and tier 3 cities?
Tier-2 and Tier-3 cities have very innovative founders and business ideas. However, they sometimes lack the right connect, platforms, incubators, or accelerator programs to bring them to the forefront. In fact, many founders focus on solving problems specific to Tier 2 and 3 towns which could be a very big gap in the market. In my opinion, VCs should identify the right venture partners to find out these hidden gems and also actively partner with academic institutions to develop student interest in the startup ecosystem.
9. What do you look forward to as an investor in the year 2022?
The year 2022 will be similar to 2021 or even better as startups continue to attract capital from both private and public markets. The year 2021 saw one of the highest investments both from PE as well as VCs with many startups also going to the capital markets. The IPO frenzy has injected a lot of confidence among investors and startups will continue to benefit from the pent-up demand from 2020.
10. What are a few sectors you think would be hot in the upcoming year?
Sectors like EV, e-Commerce, logistics, and even fintech will continue to be the flavor of the seasons amongst the VCs.
11. One learning that you would like to share with founders who are looking to raise funds?
One of the most common challenges that we face with founders looking for capital today is that they underplay their equity without understanding how valuations and captable work. Â The founders end up giving a lot of equity to investors who barely bring value to the table other than wanting to spray and pray. Any founder looking for early-stage smart capital must be equally selective about their investors as much as the latter cherry-picks investment opportunities.
Another challenge many founders are facing today is around individual investors on the captable who become extremely specific about their exits. In some cases, we have also seen their rigidity to sign on SHAs as they are entitled to the same rights as major investors. My advice to founders is that while your friends and family are one of the earliest believers in your ideas, it is very important to anticipate future rounds and draft agreements in the interest of your organization, and not the investors. Sometimes, the fundraising process can become very overwhelming, and hence, it is important to create a healthy mix of advisors, investment bankers and leverage early investors as your mascots for the same.
Niharika Kalyankar
