Humbled & Honored to be a part of a list which includes a lot of individuals who really are doing incredible things in Asia.
#ForbesU30Asia
Thank You to those who nominated me for this -
@drriteshmalik
India will list anything with cash flow these days.
Case in point: a single Yamaha dealership in NCR going public on SME Exchange
Is this a failure of banks, a low regulatory bar, or just opportunism?
Might as well list the GST department . Will get 100x on DCF method
3 Yrs ago my Dr Wife (who doesn’t understand finance) wanted to start investing herself, just told her to consider MFs, she downloaded Groww
Without assistance she ended up choosing PPFAS Flexi Cap Fund, an outperforming fund
When asked her how she picked
Ans:Logo is a 🐢
🫠
Note to self . Avoid anyone who says they are any of the following
1. Serial Entrepreneur
2. Thought Leader
3. Board Member (As if it’s a job)
4. Sales Ninja
5. (Random) Catalyst
6. Blockchain Enthusiast
JP Morgan has just valued CaratLane at 10,700 CR . Titan bought 62% (from reports) for ~360 CR in 2016. And It’s quite profitable too 👏🏽
This was done in the last market downturn in tech. It will play out in this cycle too
Let me get this straight. A Dunzo Driver was renting a bike on Bounce (per day basis), who leased the bike from Drivezy (per month basis), who paid an ICO token holder (~per year basis) ?
Inception level stuff
Zomato giving ESOPs @ 98% discount has two fundamental problems
1. You dont respect the price paid by existing shareholders by discounting it so much that you don't really value it
2. When employees get the shares post vesting, the incentive is to dump it at any price, not hold
There’s so much wrong with this. But let’s start
- Dramatic Thumbnail
- Clickbait
- Insensitivity
- Putting Money on Top of Everything
Indian finfluencers are a breed unto themselves
Every subsequent generation has had a tougher act to follow
From Money Lending in Burma 123 years ago to Electric Vehicles & Graphene today
Times Change , Values Do Not
He’s too modest to say it , but
@oberoiankit
of
@adpushup
(aka Zelto) just delivered one of the best cash exits of any tech company in India
Only raised up to Seed 🥾
Generated Cash/Did Buyback 💵
No media fanfare
40x Returns to his earliest investors
Take a bow, Sir ⭐️
Growing up , all the kids who came back from the US from a holiday or NRI cousins used to somehow wear some NASA merchandise or the other
Times have changed, and thankfully so
@isro
🚀
I have an inclination that 2023 will be a lot more kinder to PayTM than 2022 has been
As much as the noise is , they are doing a bunch of things right too. And a lot of it is scalable
Instead of expensive b schools , give your kids some money at 18 to let them dabble in the stock market , 99% of the time it will go to zero
And in return they will have the best education of their lifetime
Happened to me 😂
@sandeepssrin
@amazonIN
@sony_india
Sir
My simple rule, any electronics above 10,000 Rs I only buy directly from Croma
It works. No fuss or questioning authenticity
CG Power has hit $10 Bn in MCap
As a moment/milestone got me thinking about the takeover itself
The comeback was due to lesser talked about intangibles
1)Committed Employees
2)Immense Brand Value
3)Dedicated Partners
📷- My First Visit to Power Div where I spent 3 years
Yesterday at Dinner with Friends
The Builder Paid in Cash
The Fintech Founder paid by UPI
Two of us who work in Mfg/PE paid by Card
Pity the Waiter. But he was a sport
Diagnosed Dyslexic, as are others in our family across generations
Barely Passed 10th Std Math , got 92% in Math ISC thanks to an incredible Math Tutor Eshwar Sir who explained the true use of what’s in the syllabus
And ended up with finance as a core expertise, life is funny
Anywhere between 5-20% of children have dyslexia, according to various estimates. October is National Dyslexia Awareness Month, and parents must be at least aware of Dyslexia.
Both
@nikhilkamathcio
and I were among the worst performers in school, but we turned out alright in
Restaurant fussed over accepting INR 2000 note tonight . Showed them RBI notification, but he still kept insisting what hardship it would bring upon them
The fear of DeMon is stil exists
As a founder / promoter
You can only build business in India if you are a perpetual optimist ✌️
Enough people/reasons/situations will drag you
The hardest part is staying the course and smiling along the way, but if you manage to, usually it’s always worth it
My View (I could be wrong)
ONDC will likely affect S&Z just like UPI affected PayTM Wallet
Difference in all this -> PayTM built an incredible proprietary funnel for last mile lending
Swiggy & Zomato don’t have have control on food/logistics beyond a point
8 Years ago my grandmother told me to buy a stock for her but the only condition was - It had to have a name of a god in it 🫤
Anyways bought shares of a company called Ganesha Ecosphere -> Stock CAGR 19%
It also happens to be a a very interesting company
Why on earth are so many VCs extra excited about insuretech companies selling group health policies ?
Would you value your local broker as much if he had a fancy website & dashboard
India's Competition is Not China - Its Countries Like Vietnam
Top Income Tax Rate : 42.7% 🇮🇳 Vs 35% 🇻🇳
Corporate Tax Rate : 34.94% 🇮🇳 Vs 20% 🇻🇳
Caveat : India Gives Lower Rates to New Units, Hence many large co's just establish new subsidiaries to achieve the same
For many years Chennai has not been on public investor radar. Mostly traditional family businesses / groups.
With
@FreshworksInc
@latentview
, Go Colours, Aptus Housing Finance , Equitas , Star Health a lot of that is changing .
More to come …
Went to the IEPF website and for fun typed in some names of my family
Found old GSK (Now HUL)Shares lost during a house move (+unclaimed dividend) of my grandmother’s
Shares now in process of being claimed (painfully) , and I’m temporarily her favourite grandson I think
🤷♂️
Grateful to GoI for giving the green light for CG Power’s $791M semiconductor OSAT facility in Sanand, Gujarat 🙏
A significant step towards localisation of our burgeoning electronics industry 🇮🇳 💪
Met founders I had backed in 2016, company faced its own existential crisis 6 months ago
Downsized 75% , tripled down on only what worked , went fully remote
Trajectory for 40% Ebit
They paid for drinks and said ‘please take this as first interim dividend’
Legends 👑
Celebrating 50 Years of Shanthi Gears ⚙️
A Strong Pillar of Coimbatore’s Industry.
Leading the way in indigenous Gear & Gearbox Design & Manufacturing
A legacy started by Mr P.Subramanian, carried on with pride at
@Murugappa_Group
The Murugappa group reported strong double-digit growth for the second year in a row in the post-pandemic phase with its topline crossing ₹70,000 crore in FY23.
Yes , let’s all make returns and live in our demat account 🤦♂️
And this guy can become CEO of publicly traded companies 👏🏽 👏🏽 , I wonder what the returns would be
The millennials and gennext buying ultra-luxury homes in Chennai 's premium Condos seem to be making the most mindless decisions. They do no math before buying. Imagine them running their family businesses with the same sense.
Vellayan Subbiah wins the
@EYnews
World Entrepreneur of the year award! Previous winners from India include NR Narayana Murthy,
@udaykotak
&
@kiranshaw
. Subbiah has established his credentials as a turnaround artist, scripting a new path for Chola, Tube Investments & CG. Now
@dale_vaz
@VFSGlobal
@PMOIndia
In London they didn’t allow me to pick up my passport renewal at the embassy , they had one option ‘express courier’ - 80£ which is a scam for within central London
On top of that the delivery courier lost my passport
VFS had the gall to ask me to pay the application fees again
Now that everyone has completed their course on SVB and obtained PHD from WhatsApp University
I welcome back following topics
1. Don’t buy house, Live in Demat
2. Easy CAGR 20% for 20 years
3. Did you know 🧵Click Bait
4. Straddle & Candle Trade
5. Pump & Dump on WA/TWTR
If you look at the turmoil in some parts of Fintech , One also wonders…
Credit is a 2000+ year old business where humans find new ways to make the same mistake every 10 years
Thank you for sharing. I myself have not seen this picture of my Great Grandfather before
AMM Vellayan was a trailblazer, well ahead of his time
In Burma, he generated the capital upon which the Murugappa Group rebuilt itself in India post WW2 , by his very astute brothers
Jawaharlal Nehru with AMM Vellayan Chettiar, the son of Dewan Bahadur A.M. Murugappa Chettiar of Pallathur. AMM Vellayan Chettiar was also one of the founder members of AMM Charities Trust.
#burma
#AMM
#Murugappa
#Pallathur
#rangoon
Cholamandalam Finance Annual Report 1998
Founders of Respected NBFC's, Housing Finance Co's, Small Finance Banks and CEOs of Leading Life & General Insurance Co's
One of the most underrated areas of investing in India is finding a young promoter who could be doing 10 other things in life (out of pure competence)
But chooses to build upon the family platform
Many set ups exist today, but are you willing to give them the benefit of doubt?
Feels good to have done solid research on a stock, take a position and share the pick with close friends & associates
Investing is a skill that comes only to a few , if your consistently good at it , only share ideas with those around who won’t blame you if it goes down
Uniquely 🇮🇳 Indian Unicorns / Biz Models (Won’t find anywhere else)
1. VFS Global - Indian Passport requires visas for everything
2. Manyavar - Large Format Ethnic Wear for Weddings
3. Go Colours - Women’s Leggings Only
Others ?
Small milestone today . TII is now in top 100 co’s by market cap
While generally it (m.cap)is not something to be thinking about much, but it’s a nice feeling to make it into this hallowed list of blue chips
Great experience meeting Vendors/Dealers/Distributors of CG Consumer Products (Fans/Pumps/Water Heaters) in Coimbatore, Salem & Bangalore
Hope to cover the whole country over next 3 months and establish CG's presence as a serious market player in the year(s) ahead
Quick Take : Mama Earth DRHP
Shilpa Shetty will make more on her Mama Earth Stake sale than many VC Funds would generate in carry over their existence
Good for her 🌟 (did it that too without the need to give advice)
Chola Finance Annual Business Meet 2024 , Dubai
Over 1200 Colleagues packed in one hall !
Recognising efforts and accomplishments for the year gone by and getting energised for the year ahead !!
The Reasons for SME exchange buoyancy in Indian
- Mid Market PE funds no longer exist
- All the previous ones became tech funds
- SME Promoters are forced to give personal guarantee for building their business by banks (who have forgotten how to underwrite for the most part)
Have come to realise that the most successful founders/entrepreneurs/CEOs
have 1 thing in common
They manage to hire and retain people who are much smarter than them
Usually it takes a lot of self awareness to know, once you reach the top its easy to forget one's deficiencies
Many Congratulations to
@MM_Murugappan
on being made Chairperson of the Board of Governors at
@IIM_I
This makes two former group Chairmen of the
@Murugappa_Group
as Chairpersons of BoG at the prestigious IIMs. Other being A.Vellayan at
@IIMKozhikode
Proud Moment for the Group
Some of my quiet compounders which I probably won’t sell for a decade ++
- Bar Code Printing Machine
- Tiles
- Integrated Logistics
- Engineering Plastics
- Water Treatment
Boring is Best
At this point, I hope all people of privilege don’t sell this ‘I took 1 lac Rs loan from family and built it with my sheer grit’. That’s asking for respect
If the lift man,office boy, shop floor worker thinks of you as a fair and decent person, it’s enough
Don’t need a podcast
NCLT Ring-fencing GoFirst from the other group companies will go down as a watershed moment in India Inc
Indian banks have long gotten away with ‘Group’ Concept in giving loans which absolves them of prudent underwriting - dragging other entities just because of common ownership
I’m almost convinced most promoters who sell out from their business are more unhappier than before
They move from specific industry expertise to wealth/investment management, a different skill set - most don’t have, outsourced to a bunch of wrongly incentivised people
Congratulations CSK ! 🦁 💛
One of the best Finals IMHO
5x Champions 🏆
In honour of your victory - some of our finest LinkedIn influencers will post today about leadership, crisis management and ‘never give up’ state of mind - and somehow link it to themselves
One Zone of Investing I believe in
1. Hungry Next Generation Promoter
2. Worked for min 5 Yr in system
3. When in control, knows exactly what to execute
4. Age Bracket : 35-50
So many market people write off inheritors, but empirically they have created highest value in India
India has a lot of bootstrapped / Capital Light founders building quietly under the radar . Their margin of safety is worth more than any interim flutters of value perception
@Posist
@adpushup
@Exotel
@dataweavein
@plivo
New Lok Sabha Building will have 888 (Now 545) Seats , this expansion will redraw power maps in India . More seats will go to states with more population - if we redraw.
This is inversely correlated to how developed and prosperous each state is. Leave covid , this is ⚠️
Australia , a tiny country with a population of 25 Mn has spawned
@Atlassian
,
@afterpay_au
&
@canva
! Imagine what bright kids will do from India in the coming decade!
The most valuable businesses in the world are Subscription businesses
SaaS & Indian Municipal Road Contracting (Make a bitumen road so bad, but also get the contract to re-lay it)
VCs should invest here
Scale of Fintech : Federal Bank Q3 Inv Presentation
"Fintech partnerships progressing well and
contributing to 75%+ of new accounts
booked"
@TheJupiterApp
@guptajiten
In Street Smart:
-Tube Investments has made a killing (lucky?) in CG Power. The value of the company’s investment of Rs 550 crore has jumped 24x to around Rs 13,000 crore. By
@imFmoharkan
-Vistara will stay away from Air India. By
@PRINCE0879
Spoke a B2B founder today- Quiet, Reserved, Unassuming
As the conversation went on, I realised this guy is completely underselling what he’s done
Would be great to work with him to build something highly capital efficient and valuable
I can learn extra humility this way
Just finished reading the National Geospatial Policy 2022 , fascinating use of mapping & space technology
Also seems to be a very large market ~25,000 Cr (from what I gather)
Its a union of Tech/Maps/Hard Infra/Space Technology
Big Domestic Opportunity
Very excited about opportunities in our CG - Consumer Products Biz
Regional Teams are shaping up well , If you are a dealer / distributor please get in touch to be a part of it
CG is a Net Cash Murugappa Co, with 80+ Years of growing hand in hand with vendors & channel partners
FAANG Jobs are now what people used to say about Unilever , Nestle and P&G . It’s full of comfortable ‘Lifers’
Not many Lifers ever created something meaningful if you’ve stayed 5+ years at such companies
For every 1 Rs of tax generated in Bihar it gets 7 Rs back
Only to allocate it to suspect contractors who wouldn’t get awarded the project in any other state ?
Prayers 🙏
4 lane under construction cable stayed on River Ganges collapses in the state of Bihar
Contractor - SP Singla
Agency - BRPNNL
Length - 3.1 KM
Project Cost - ₹1800 crore
15 Yrs ago
@abhijitgupta
and I bought and sold Beyoncé tickets to make extra bucks while at University
Today he’s Co founder of a bootstrapped 100 Cr F&B biz (Pizza Bakery & Paris Panini)
Watch him experiment building a 100 Cr Burger Biz in 100 Days
Our Group Co - CUMI is celebrating its 70th Year. This year’s Annual Report has lovely walk down memory lane.
A Formidable Global Player in Material Science, patiently built by visionaries
Imagining a day a decade from now when India makes its Electronics Ecosystem (just like we did in auto) & 100x bigger use of non imported energy (Crude/Coal/Gas)
Two of our largest liabilities in imports could suddenly become assets
Expanding our Railway Product Portfolio via our equity partnership with GG Tronics
Railway Safety is an Key Focus area for CG Power & Our Nation
🚆 ⚡️ 🇮🇳
PFAS Contamination into our food is scary. Throwing out all non-stick cookware from my kitchen
Moving to higher quality products made of Aluminium/Stainless Steel/Cast Iron
Murugappa Group reports a 23% rise in net profit at Rs 5,520 crore for the financial year 2021-22, compared to Rs 4,481 crore during the same period in 2020-21.
@shinejac
reports
#MurugappaGroup
#NetProfit
Checked into scrips making the following products
1. CNC Machines
2. Seals
3. Speciality Oils
All growing and surprisingly reasonably priced
PS - Please do your own research
Find it amusing how public market investors love to pick up startup losses articles have a laugh and comment with their coterie of homogenous thinkers
Reward is only for those who take risks. It’s not your funds , why do you care so much to ridicule
During the Honasa IPO, some fintwit were quick to trash the MFs for buying and the promoters for pricing, even though no one forced them
One of my investment methods is to empathise with promoters, usually vilified for every small thing in India
It helps me discover value
At 17 I was given a princely sum of money (for my age) to invest in the stock market thinking it was so easy . Bought crap stocks & did day trading
Result - lost pretty much everything
Outcome - Best education ever 🎓
Note to self.
Avoid : Founders who only want to be "Promoters" on the upside, but miraculously become "Salaried Professionals" on the way down
Double down : On those Founder who do not treat other peoples money as a commodity without personal responsibility
Young fin-tech team - good guys 24 years old , who I’m backing
Was made to wait for 1.5 hrs to meet with this other fintech founder. Who also acts like a jerk and puts up his price on investing in the co. + gives terrible advice on burn
Money doesn’t bring you humility or class
In ~2015/16 there were about 40+ B2C Pharmacy Delivery Apps/Startups mushrooming
Each VC backed one of them hoping it would win the holy grail
In the end all the 3 Players left in the market are now associated with multi generational conglomerates/promoters
TATA/RIL/Manipal?
That's hell of a tax payment for 'ghar-wapsi' 😵💫
Razorpay's plan to relocate base to India could incur a tax payment of $250 Mn – $300 Mn in its current domicile, the US.
Wonder if this will deter many who were considering to shift their domicile
Wondering if I should start a smallcase for small/mid cap / lesser known researched/ talked about companies .
Worked for me well, contemplating if it’s worth putting it out there 🤔
My first job - ECM Analyst - IBD , I vividly remember this call between RJ & BRLMs
He wanted 600, Finally Priced at 400 . He was fuming
Many years later, I met him at a wedding when I worked for a fund in 🇬🇧
He said ‘How can you invest in 🇮🇳 living abroad, move back’ . I did
Took a position In a double engine co. Two divisions, both unrelated , each 50% of revenue. Gross Block ~3x in 8 Yrs
Both just had 3-4 trough years in margins , and interestingly both will likely move to peak margins in 12-24 months
You get both earnings + multiple expansion