Dear Sahara Group,
I wish to say ‘Sahara Salaam’ to you.
Now, I know that the protocol is ‘Sahara Pranam’, but I am just bowled over by you and hence cannot help but saluting you.
Why the sudden respect?
I saw this ad in today’s Economic Times:
Sir, in as much as I am completely smitten by your success and business revolution, I am also a student of Business and Entrepreneurship and beg you for some clarifications:
Ps – I am just a B.Com so pardon the amateur questions. Also, I am a struggling philosopher and monk so I may ask some softer questions also:
Sir can you please answer these questions of mine:
1. When you say in the first lines ‘most of us give materialism…second priority’
Do u refer to people who live on this planet (earth) or some other planets that you may also have your operations on?
The reason is that on this planet (earth), most of the humans I know place materialism first…. but then again I live with down-trodden people, so it will be nice to know the angle from your side.
2. Is ‘Collective Materialism’ your term?
In my local college I learnt about the term ‘Collective Bargaining’ and have read a fair deal of Marx, Keynes, Schumpeter, Galbraith, Krugman and others but have never come across this term.
It would be an honor to understand it beyond a few words. It may well qualify for a thesis that may lead to the Nobel Prize in Economics etc etc?
3. Your Salary Hike of 60% ACROSS THE BOARD!
Sir, I run a very very small business and have been struggling for 13 years. We normally give increments between 10-30% MAX -depending on also the base salary.
As CEO, I probably get a 5-10% raise once in every 18 MONTHS.
Sir, can u simply explain your business model that lets you GIVE 60% hikes like this??
(PS – I am personally also quite tempted to join your ‘Parivar’ – I mean a 60% would really change my world for me).
4. Sir, why are the KIRANA SHOPS ‘OWED’ to your DEPOSITORS?
I did not understand the connection.
If I have loaned you money as a fixed deposit, then why should you be obliged to sell me milk and fruits and vegetables?
Sir, I thought you will grow my money by investing in big businesses etc. My local kirana guys is quite fine – sir…for buying tomatoes and carrots etc..
5. Sir, if you are going to employ 2.5 LACS new people and pay them salaries between 8 k and lacs, then even assuming a mean salary of 20k, thats 5000 CRORES PER MONTH.
Assuming that your Salary cost will be 30% of monthly expenses, your ‘NEW OPERATION’ will cost you 15,000 CRORES TO RUN.
Now Sir, to give me return on my deposits etc, you have to make money.
Sir, to earn say 18000 CRORES REVENUE per month ( so that you earn a modest 15% return on that and also manage expenses of 15,000 CRORES), that makes the TOP LINE 4 BILLION US$ per month or 50 BILLION DOLLARS IN YEARLY REVENUE
SIR – that will mean that you will almost be bigger than RELIANCE INDUSTRIES and just under ONGC !!!
See this link for the top revenue Companies in India as per revenue (2009 Wikidpedia data) – https://bit.ly/trh-topindiancos
Sir, I am enamored by your vision, business models, style of Investor protection and transparency. It will really help if you can answer these questions also so that we can ALL be part of this MIRACLE on earth.
Your faithful follower,
Alok ‘Rodinhood’ Kejriwal
alok@rodinhood.com
Alok Rodinhood Kejriwal
yeah Jyoti…. NEVER get taken in by ‘Big’ people. They will always take you for a ride…
but I am sure you know that by now….
Rajan
Nicely written,but are the calculations right in Question no. 5 ???
anand.kaya
Does this advertisement merit a place in this discussion?
We all know Sahara group and where its money came from. Its scams, Mr Sahara’s Background and the alleged criminal activities. The ad must have been written by a smart copy writer just after his morning tea and the Sahara Pranam, of course, accompanied by the customary “CHARAN SPARSH” without which the poor guy will lose his job.
Let us look at the finer aspects of business than being bothered by Sahara, an adjectives by itself now.
Rahul Chhajer
I have been thinking for quite sometime now…..
1. What is the core business of Sahara India (as the only known airline it had, was sold by it to Jet Airways and the other unknown brand “sahara samay news channel” is still unknown by many) ???
2. Why is it sponsoring Indian Cricket Team for years now for hefty thousands of crores when it doesn’t have a core business ???
3. How does Sahara generate so much revenue that it can pay & hike salaries in such inflationary trends and it can buy an IPL team, buy stake in Force India ???
4. How can the chairman of Sahara call himself Sahara Shree ???
we want Mr. Sahara Shree to please clear the air on his business model (if only he has one) and share it with his Indian Parivar, lot of people would be benefitted and Indians would scale to a new zenith just like him.
Anand
I just don’t get it.. Our man ‘Sahara Shri'(as he is known) is a RBI Defaulter.. They have been banned by the central bank from raising money and just a couple of months back they made tall claims of paying back over 25000 Crs debt.. They are official sponsors of the Indian cricket team and now a stake in force India!! I still don’t know what they do for a living!!!
Alok Rodinhood Kejriwal
any errors?
I will be happy to correct them….
Alok Rodinhood Kejriwal
2.5 lacs * Rs 20,000 = 5000 crores
30% of 15000 crores = 5000 crores approx ( 4500 exact)
18000 crores – 150000 crores = 3000 crores. 3000/18000 = 15-18% margin
Jayesh S Gokalgandhi
Anand
Wait a minute.. Govt of india’s borrowing program for this fin yr is 100000 crs and our man has repaid 73000 crs in a jiffy..
Gurpreet Singh Tikku
Alok Sir.. loved the last calculation. And I am sure most of us would have said WOW reading the 2.5 lakh job creations then, rather then spend a few minutes and do the calculation like you did.
I just hope is Sahara ke Be-Sahara hone par kisi ka Sahara na Choote.
Anyways, agar kisi ka chuttega to they deserved it by investing with them at the first place.