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The Kaipullai Profile picture
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Jan 17,, 4 tweets, 1 min read
The greatest achievement of China is creating a huge, rich, upper middle class of people, who are ready to spend.

The Chinese bought 400k Teslas in 2021.

The total luxury car sales in India for the same period, was about 40k. This is Audi+Mercedes+BMW+ Everything else.
China sells more Teslas in 20 days, than what all our luxury car manufacturers put together, sell in a year.

The only way for us to hit the $5 Trillion mark, quickly, is by ensuring a strong, urban, upper middle class.

And the only way to do it, is rapid industrialization.
You can have as many unicorns as you want.

Till the time the best jobs they generate happen to be delivery riders, it's very difficult for us to leap frog China.
A strong middle class buys stuff. Increases profits for a company. Rewards them for innovating. Spurs further research. Increases product quality. Brings in new technology. Ensures progress of the Society.

A strong middle class is a pre requisite for a strong economy.

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More from @thekaipullai

The Kaipullai Profile picture
Jan 18,
Maruti is launching the new Baleno in 2022.

One of the key features they have mentioned in the press release is "Stronger Steel"

I guess they finally realized that building cars which are marginally thicker than cardboard, is actually counter productive and people don't like it
This has happened because there are competitors like Hyundai, Tata and VW, who offer better built cars for pretty much the same price.

The customers can shift if they want to. And they have done.

Which has forced even Maruti to wake up.
Imagine the same thing happening in the 80s India, where Maruti would be the only company selling cars in India.

Do you think they would have made these changes?

They would have probably made the car worse to increase their profits.
Read 4 tweets
The Kaipullai Profile picture
Jan 15,
Why does the govt of India still believe in running by decree and regulation of industry? Why don't they incentivize instead?

Instead of dictating auto companies to make 6 airbags mandatory, why doesn't the govt reduce taxes or give credits for manufacturers who build safe cars?
It's not as if incentivization doesn't work. When Karunanidhi wanted Tamil film industry to have Tamil titles, he did not pass a decree.

He said all movies with Tamil titles will get Entertainment tax waivers.

Till GST, no Tamil movie had other language name post that.
But somehow the Govt has to take a cue from the British Raj to run the country.

Put rules left right and center. Pass hundred decrees and regulations. Tax the hell out of industries. Drive up prices, make common people suffer.

While the rule making babus live in luxury.
Read 4 tweets
The Kaipullai Profile picture
Jan 13,
Remember my thread about LHB coaches the other day and how they are safer?

Today there was distressing news about a Train accident In WB that took 5 lives

This tragedy happened because that train was running coaches designed in 1955, which in an accident, climb over one another
Most of the loss of life happens not because of the actual derailment, but because of coaches smashing into one another.

The LHB ones are telescopic in design and in a derailment, they don't overturn or climb over one another.

As a result there is no tragic loss of life.
We had this coaches since 2003. But because the previous govt decided that the cost of Indian lives was not worth the cost of the new Coach, they didn't do anything.

As a result, 50% of the trains still run on these relics, which deserve to be in a museum, not tracks.
Read 6 tweets
The Kaipullai Profile picture
Jan 7,
Unpopular Opinion: No matter what you do in India, you can never uproot the traditional distribution networks in India, especially in FMCG. Any company which overlooks them and favours Udaan, Jiomart etc etc, is shooting themselves in the foot
No single company can cover the entire length and breadth of this country. TN alone has more than 1 Lakh retailers, of different sizes and values. You can homogenize all of them.

Traditional distribution does two very important things
1. Bulk Breaking
2. Giving Credit
And they can do that because of the area they serve. They know the credit worthiness of a retail outlet. They have familial or historical ties with them. Not only do they know how to give credit, but also how to get the money back.

And they can deliver 5 pieces of a product.
Read 6 tweets
The Kaipullai Profile picture
Jan 6,
Basic Economics dictates that if you have a product available at a particular price, the same product if given a value add, should cost more

Most of the time, this holds true

Except Sugar Cane Juice in Mumbai

The one with Ice, costs 20 bucks. The one without ice, costs 25
It's because most if the shops, put a block of ice right below the Juice extractor. So by default, the juice is with the ice.

If you want it without ice, he has to make one specially for you.

That effort to custom make the juice for you costs you 5 bucks.
Sometime, Value addition, can actually be Value subtraction.
Read 4 tweets
The Kaipullai Profile picture
Jan 5,
All this LinkedIn talk about spending 25 Lakhs for an MBA vs startup is so pathetic

First, most people who do an MBA don't have 25 lakhs to spend. Most take a loan

Banks easily give a loan for an MBA. Try asking them money for a startup

You will be chased out before Lunch Time
Second, MBA offers a minimum guarantee of a Good to a decent Job. Even if you pass out from a Tier 2 institute. The probability is close to 80%, you will walk out with a salary.

If you start up, the probability of you failing is 90%.
And in India all this gyaan about learning team building, execution and motivation are as useless as a snow maker in Anatartica.

In India nobody hires a straight out of college, failed startup founder, unless that Guy is from IIT.
Read 4 tweets

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