Mukesh Hingane

Works at Reserve Bank of India. Central Banker. Avid Reader. Inquisitive

[Fundamental Investor ™ 🇮🇳 @FI_InvestIndia]

Dear FM Madam @nsitharaman ji,

I have said it before. And I'll say it again. Loud & Clear.

LTCG of 12.5% on Equities is one of the Lowest in the World.

But there are a few issues:

1. LTCG was ZERO from 2004 to 2018. STT was introduced to offset the Loss in Revenue. It incentivised long term Investors to Hold on Patiently and enjoy Long Term Returns. I believe that Step was something Golden and rewards Long Term Thinking. FM Madam should reconsider this. Keep STT. Abolish LTCG.

2. STT is already taken for every transaction. This is a tax. Again putting Capital Gain, especially on Long Term Gains is not Ok. This is my Opinion. STT is borne by the investor irrespective of Profit or Loss.

3. We are not against Paying Taxes. In fact, we all Pay Income Tax, Capital Gains Tax, GST, Excise, VAT, Tax on Dividends and what not. The problem is the Freebies which are Distributed during the Elections. This is not at all ok. We don't want a single rupee of our Capital Gains to be used for Freebies. Please.

I humbly request the FM Madam to Abolish LTCG on Equities. Make the Long Term Period 24 months instead of 12 months. You will see Patient Capital 👍

For Indian Investors like me, the Pain is lesser. We will continue to Create Wealth. But what about our FII brothers & sisters. They also deserve to get minimum returns in Dollar Terms.

I feel for the FIIs who have suffered due to declining Rupee and they still have to pay LTCG on Rupee Terms. Something the FM Madam and team should revisit.

I think that it is a good time to implement this. FII no longer control our markets. Domestic Funds are consistent and plenty. If FIIs leave, let them Leave with Head Held High. That is our Responsibility.

India Structually is Brilliant. Let's make it Tax Friendly as well.

Patient Capital will Flow More & Stay, if these Steps are Taken.

A Proud Indian Investor,
#FI

[Mukesh Hingane @HinganeMukesh]

Travelling in Train number-16584 (Latur to Yeshwantpur Express) in (A1) seat no 43, 2AC and departed from Latur. However, AC is not working at all. @RailwaySeva @RailMinIndia

[Mukesh Hingane @HinganeMukesh]

#NewProfilePic

[Minhaz Merchant @MinhazMerchant]

New York City flooded by 50mm of rain, NY governor asks residents to plan “escape routes.”

50mm.

That’s how much Mumbai gets in an hour in the monsoon.

[Mukesh Hingane @HinganeMukesh]

https://t.co/vu2mDHOLu2 @BBC

[Alok Jain ⚡ @WeekendInvestng]

sometimes you find things on the internet that are priceless!!!

[FinFloww @FinFloww]

In 2010, Kishore Biyani’s Big Bazaar was trying to create a retail monopoly in India.

Until Radhakishan Damani’s DMart stopped them in their tracks.

The funny part? While Big Bazaar had 250 stores all over the country, DMart defeated them with just 10!

Here’s the EPIC story:

Big Bazaar and DMart were founded around the same time in the early 2000s.

Truth be told, Big Bazaar popularized the supermarket culture in India.

It is said that during its peak, more than 300 million customers visited the stores in a year.

Bringing all sorts of products under one roof, it was once considered to be the largest supermarket chain in India.

Then where did it all go wrong?

Kunal Shah says that the western model doesn’t always work in India.

That’s true, we shouldn’t be copying the west!

But here’s the catch: some things work on humans universally.

So, instead of reinventing the wheel, it’s better to copy where you rationally think it can be effective.

The core idea here is being rational and knowing your customers very well.

While Kishore Biyani did not fully embrace the west’s model because he thought it wasn’t applicable in India, Radhakishan Damani studied and applied it in DMart.

DMart stuck with its proposition which was providing goods at extreme discounts.

They understood that Indians love discounts.

Moreover, you can easily drag them towards yourself and retain them, if you keep giving discounts.

This will build customer loyalty.

In India, you can’t just acquire customers with discounts and not continue to give those discounts.

Therefore, they never introduced loyalty programs or went aggressive with marketing and seasonal sales.

But when every other supermarket chain offers similar kinds of discounts, how does DMart win and what makes it special?

The problem is most other retailers think of discounting as an acquisition strategy.

When all other retailers burn cash to give deep discounts to acquire customers, DMart has deep discounting embedded in its business model.

Discounting is at the core of its business.

Damani used cost optimisation to make this discounting system sustainable.

Big Bazaar did the same, but the problem was — for them expansion came before sustainability.

We have to understand that this is a low-margin, high-volume business.

Rightly so, expansion makes sense.

But DMart optimised its small number of stores to generate maximum profits.

They adopted a lean and mean model.

This worked better overall because they could do this without taking on much debt, while uncontrolled expansion needs to be fueled by debt.

It helped them ride the Global Recession of 2008 better while Big Bazaar was affected badly due to high debt.

Big Bazaar leased stores in malls and rents kept going up every year.

Its parent company — Future Group — kept acquiring other supermarket chains such as HyperCity and Easyday to name a few.

By 2019, they were drowned in a ₹12,800 crore debt. Pandemic was the final nail in the coffin.

Meanwhile, DMart has complete ownership of most of its stores which are usually located in suburbs.

Because not only is it cheaper, but this is where their target customers reside.

They chose to expand slowly with little to no debt and reinvested profits back into the business.

There’s more to this story.

In their mission of cost optimisation, they focused on building strong relations with the suppliers by clearing their credits within 10 days.

Whereas others took as many as 60 days.

This way, they were able to get goods at huge discounts and provide them to the customers at the cheapest price.

DMart has less number of employees compared to the overstaffed Big Bazaar stores.

Unlike Big Bazaar, they refrained from selling perishable products such as fruits and vegetables, and huge electronic items which need more space for display.

They only sold products which have a high brand recall and demand throughout the year.

This helped them further cut costs and increase profits.

We have a bias that only businesses with the highest market share thrive.

A business which is sustainable over the long term is a much better bet.

Mindless expansion for gaining market share could kill your business.

Look for companies which serve their customers extremely well and make them come back again and again because of their unique value proposition, not because there’s no other option.

If you liked this read do RePost🔁 and follow us @FinFloww

for more such reads every Monday, Wednesday, and Friday!

[Modern Agriculture Updates @ModernAgUpdates]

Too small but more efficient!

[Mukesh Hingane @HinganeMukesh]

@Abhishekkar_ is this you in a Marathi movie.

[Andrew Lokenauth @FluentInFinance]

I've used Microsoft Excel for 20 years and these 10 functions will make you feel like an expert (so don't use Excel again without knowing them):

[Raahul Kumar Das @Rahul_Invest]

Stocks that Superstar Investors bought/added last quarter :

1. Rekha Jhunjhunwala

- Tata Comm
- Titan

2. Vijay Kedia

- Atul Auto
- Patel Engg
- Precision Camshafts
- Neuland Labs

3. Ashish Kacholia

- UGRO Cap
- SG Finserv
- Venus Pipe
- Aditya Vision
- Yasho Ind
- Agarwal Ind Corp

4. Mukul Agrawal

- Zen Tec
- Capacite Infra
- Kanoria Chem
- De Nora
- Neuland
- Sahyadri Ind

5. Sunil Singhania

- Dynamatic Tech
- HIL
- IIFL Securities
- ADF Food
- Sarda Energy

6. Madhusudan Kela

- Sangam India

7. Dolly Khanna

- Pondy Oxide
- Deepak Spinner
- Talbros Auto
- Monte Carlo
- Control Print
- Mangalore Chem
- Prakash Pipe

8. Siddhartha Bhaiya

- Jagran Prakashan
- Vindhya Telelink

9. Anil Kumar Goel

- DCM
- LG Balakrishnan & Bros
- Indsil Hydro Power
- Uttam Sugar
- Magadh Sugar
- TCPL Packaging

Dis : Just for Info. Plz dont take this as a recommendation.

[Ajay Bagga @Ajay_Bagga]

Surat Diamond Bourse .
Becomes the biggest office complex in the world , with a capacity to have 65000 diamond trade related staff working in the 35 acre structure . Do spend a minute to read this article on this marvel. https://t.co/ut7HOJj8Lw

[Eminent Intellectual @total_woke_]

Sex is not decided by birth. Supreme Court justice is decided by birth.

[Incognito @Incognito_qfs]

Tamil actor Kanal Kannan was arrested for posting this video.

In public interest, I request everyone to retweet this tweet so that everyone gets to know that they should not post this video. 🙏

[Intrinsic Compounding @soicfinance]

Have studied and covered multiple Banks and NBFCs over the last 3 years. These 9 videos which will teach you something new about banking, and most of them will make understanding banks easier than you think it is!

Here is a full list🧵🧵🧵🧵🧵🧵🧵🧵

RT for max reach!

[𝐒𝐀𝐔𝐑𝐀𝐁𝐇 @VoiceOfSaurabh5]

Witness the enchantment of Maa Bhadrakali's eyes during Divine Abhishekam!

[𝐒𝐀𝐔𝐑𝐀𝐁𝐇 @VoiceOfSaurabh5]

The Specific Technical Subtlety of Our Ancestors is Beyond Our Understanding..!!

- Daityasudan Mandir, Lonar, Maharashtra, is built in such a way that the first rays of the morning fall on the feet of Bhagwan Shri Vishnu!

[MUMBAI NEWS @Mumbaikhabar9]

Captain Hambirrao Baji Mohite died at age 98, following brief illness in Pune yesterday. He was a direct descendant of 'SarSenapati' Hambirrao Mohite, chief military commander in the army of Chhatrapati Shivaji Maharaj. His 7 generations have served in the Indian Armed Forces. Survived by wife, 2 sons, 2 daughters, daughter in-laws & grand children. Last rites to take place at 11 am on 2nd July at Vaikunth Shmashan bhoomi, Navi Peth, Pune on return of his youngest son from the USA.
At age of 20 Late Baji Mohite was posted in Italy with Maratha light infantry during the 2nd World War. Later retired & took up farming in 80 acre land granted by Govt. Here he served as the Managing Director of Pravra Sugar Co-op Factory, largest such unit in Asia. Watch a clip of his interview given to Deccan King at age 93-

[Varsha Singh @varshaparmar06]

22 Brilliance of our ancestors❣️

1. Kedarnath Mandir, Uttarakhand

It is discovered that it was covered entirely in snow for almost 400 years & It was hit with unprecedented flash floods & landslide in 2013. But still its standing tall & shining.

@LostTemple7