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Category: Case Study

  • Maruti Suzuki India Vs Hyundai: Which Car Stock is Better?

    Maruti Suzuki India Vs Hyundai: Which Car Stock is Better?

    The Indian four-wheeler auto segment is primarily dominated by two companies: Maruti Suzuki India Limited and Hyundai India Motor Limited. Both of these companies offer a wide range of passenger vehicles, including hatchbacks, sedans, SUVS, etc. Maruti was listed in 2003, whereas Hyundai India was listed on the Indian Stock Exchange in 2024; therefore, the long-term returns of both cannot be compared. However, there are certain other parameters that can be considered while comparing both of them.

    In this blog, we will help you find the answer to the question of which stock is better among Hyundai India Motor Limited and Maruti Suzuki India Limited based on various parameters.

    Overview of Maruti Suzuki India Limited

    Maruti Suzuki India Limited was established in 1981, and initially it was known as Maruti Udyog. It was a joint venture between the Government of India and Japanese automaker Suzuki Motor Corporation and eventually became its subsidiary. Now, it is one of the largest passenger vehicle manufacturers in India. The company holds a prominent position in the Indian passenger vehicle market and holds around 42% market share as of FY 24. Maruti Suzuki has manufacturing units in Gurgaon and Manesar and is planning to commence operations at a new plant in Kharkhoda, Haryana. Maruti Suzuki has invested a huge amount in localising the manufacturing of batteries by signing an MOU worth 150 billion yen with the Government of Gujarat. The company exports its cars to over 100 countries across the globe. The company’s headquarters are situated in New Delhi.

    Business Model

    • Maruti Suzuki India Limited’s core business is manufacturing and selling vehicles. It offers a wide range of cars to every customer segment. The segments covered are entry-level hatchbacks, compact cars, sedans, SUVs and MPVs.
    • The company distributes their product through two channels: Arena, which sells budget-friendly cars, and NEXA, which caters to the needs of premium customers.
    • It offers other services like selling pre-owned cars through True Value, insurance broking, financing, driving schools, and selling accessories and spare parts.

    Read Also: Maruti Suzuki Case Study: Business Model and Marketing Strategy

    Overview of Hyundai Motor India Limited

    Hyundai Motor India Limited is a wholly owned subsidiary of the South Korean company, Hyundai Motor Company. It started its operation in India in 1996 and soon became India’s second-largest car manufacturing company by sales, just behind Maruti Suzuki. The company has two plants situated in the state of Tamil Nadu, with an annual combined capacity of more than 8 lakh units. The company also acquired a plant in Talegaon, which was earlier owned by General Motors India. The company offers a diversified portfolio of passenger vehicles to its customers, which includes hatchbacks, sedans, SUVs, and electric vehicles. It is the largest exporter of cars in India, and it exports its products to over 92 countries. It also set up a Research and Development centre in Hyderabad, which primarily focuses on innovating passenger vehicles. The company launched its IPO in 2024, which was one of the largest IPO of the year. The headquarters of Hyundai Motor India Limited is situated in Gurugram, Haryana. 

    Business Model

    • The company’s core revenue source is selling passenger vehicles, and catering to the needs of different customers who wish to have a hatchback, sedans, SUVS, and electric vehicles. 
    • It also has a strong dealer network of more than 1,500 dealers spread across India.
    • The company also offers maintenance, service, accessories and spare parts through their service centres.

    Read Also: Hyundai Motor India Case Study: Business Model, Financial Statements, And SWOT Analysis

    Comparison of Market Details

    ParticularsMaruti Suzuki India LimitedHyundai Motor India Limited
    Current Market Price (₹)12,6151,757
    Market Capitalisation (In ₹ Crores)3,96,5551,42,661
    52 Week High (₹)13,6801,970
    52 Week Low (₹)10,7251,542
    Book Value (₹)3061161
    Face Value of Share (₹)510
    P/E Ratio (x)27.424
    (As of 12th May 2025)

    Performance Comparison

    ReturnMaruti Suzuki India LimitedHyundai Motor India Limited
    1 Month6.50%6.39%
    6 Months13.30%-2.46%
    1 Year-0.39%NA
    5 Years147.53%NA
    YTD12.64%-2.21%
    (As of 11th May 2025)

    Inference: In the short term, Hyundai Motor India has underperformed as compared to Maruti, which has been a consistent performer in the longer period. However, it would be unfair to compare the price performance of both companies as Hyundai was recently listed.

    Income Statement Comparison

    ParticularsMaruti Suzuki India LimitedHyundai Motor India Limited
    Sales 1,41,85869,829
    Total Revenue1,45,95171,302
    Total Expenses1,28,58762,904
    Profit After Tax13,2346,060
    (As of March 2024)

    Inference: As of March 2024, Maruti Suzuki India Limited has outperformed Hyundai Motor India Limited both in terms of revenue and profit. 

    Balance Sheet Comparison

    ParticularsMaruti Suzuki India LimitedHyundai Motor India Limited
    Current Assets22,63416,124
    Non-Current Assets92,71710,225
    Total Shareholder Funds85,63610,666
    Current Liabilities25,95226,349
    Non-Current Liabilities3,7632,686
    (As of March 2024)

    Inference: Maruti Suzuki India Limited has more than 4x the assets of Hyundai Motor India Limited and almost equivalent total liabilities.

    Cash Flow Statement Comparison

    ParticularsMaruti Suzuki India LimitedHyundai Motor India Limited
    Cash Flow from Operating Activities16,8019,251
    Cash Flow from Investing Activities-11,864-10,090
    Cash Flow from Financing Activities-4,062-15,930
    (As of March 2024)

    Inference: Maruti Suzuki India Limited has a higher cash flow from operating activities, whereas, Hyundai Motor India Limited has a significantly higher cash outflow from financing activities, when compared to Maruti.

    Key Performance Ratios

    ParticularsMaruti Suzuki India LimitedHyundai Motor India Limited
    Operating Profit Margin (%)12.2412.02
    Net Profit Margin (%)9.328.67
    ROE (%)15.7556.81
    ROCE (%)19.4262.89
    Debt to Equity (x)00.07
    (As of March 2024)

    Inference: Being a company that is aggressively expanding, Hyundai Motor India Limited has better ROE and ROCE, but the net and operating profit margins of Maruti Suzuki India Limited are higher.

    Shareholding Pattern

    ParticularsMaruti Suzuki India LimitedHyundai Motor India Limited
    Promoter (%)58.2882.50
    FII (%)14.967.17
    DII (%)23.647.01
    Public (%)2.623
    (As of March 2025)

    Inference: Hyundai Motor India Limited has higher promoter holdings. But FIIS holds only a 7% stake in it, whereas they hold around 15% stake in Maruti Suzuki India Limited.

    Read Also: Mahindra & Mahindra vs Tata Motors: Which is Better?

    Which Stock is Better?

    Maruti Suzuki India Limited focuses on reliability and affordability, whereas Hyundai Motor India Limited focuses on modern design and advanced features. However, in terms of revenue and profit, Maruti Suzuki is ahead of Hyundai by a long way. However, in terms of ROE and ROCE, Hyundai Motor is ahead of Maruti Suzuki India Limited. On the other hand, Hyundai Motor India Limited has already launched its electric vehicles, and announced its plans to manufacture them in India. Maruti Suzuki India Limited is focusing on the affordable passenger vehicle segment and dominates the segment. However, it is advisable to consider the risks which the automobile sectors have, such as cyclical business, production cost, government regulations, etc. Choosing the best stock depends on the investor’s risk profile. An aggressive investor can go for Hyundai Motor India Limited, and Maruti Suzuki India Limited is suitable for conservative investors. It is advised to consult a financial advisor before investing.

    Conclusion

    On a concluding note, Maruti Suzuki India Limited offers stability to your portfolio during market downturns and has the potential to deliver moderate returns. Hyundai Motor India Limited can be considered an aggressive investment option as it presents high risks in the form of higher debt to equity ratio, which can result in high volatility. However, it is always best to consult your investment advisor before making any investment decision.

    One can easily invest in both the shares using the Pocketful mobile application, where you can buy them without paying any brokerage on delivery. So open a free demat account with Pocketful now.

    S.NO.Check Out These Interesting Posts You Might Enjoy!
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    3Tata Power Vs Adani Power: Comparison Of Two Energy Giants
    4ITC vs HUL: Comparison of India’s FMCG Giants
    5Flair Vs DOMS: Unveiling The Best In Stationery Industry

    Frequently Asked Questions (FAQs)

    1. Who is the current CEO of Maruti Suzuki India Limited?

      The current managing director and CEO of Maruti Suzuki India Limited is Hisashi Takeuchi, he was reappointed for an additional three-year term from 1st April 2025.

    2. Among Maruti Suzuki India Limited and Hyundai Motor India Limited, which stock is suitable for long-term investment?

      Both companies belong to a large-cap category, but Maruti Suzuki is considered more stable when we compare the returns of the last year. Also, Maruti Suzuki India Limited has a higher market capitalisation when compared with Hyundai Motor India Limited.

    3. Which is the best company between Maurit Limited and Hyundai Motor India Limited?

      Both companies can be suitable for different types of investors as Hyundai Motor India Limited is primarily focusing on growth through its EV plans, whereas Maruti Suzuki India Limited is focusing on providing more stable returns and giving regular dividends.

    4. Which company has the higher FIIS holding among Maruti Suzuki India Limited or Hyundai Motor India Limited?

      As of 31st March 2025, FIIs hold a 14.96% stake in Maruti Suzuki India Limited, whereas their stake in Hyundai Motor India Limited is only 7.17%, which indicates that FIIs has a higher holding in Maruti Suzuki India Limited.

    5. Is Hyundai Motor India Limited a large-cap company?

      As of 12th May 2025, Hyundai Motor India has a total market capitalisation of 1,42,661 crores, and belongs to the large cap category.

  • Devyani International Vs Sapphire Foods – Which is Better?

    Devyani International Vs Sapphire Foods – Which is Better?

    Fast food has become a huge part of our daily lives, whether it’s a quick lunch at KFC, a pizza party at Pizza Hut with friends, or a cheeky Taco Bell run. But have you ever wondered who runs all these popular chains in India?

    That’s where Devyani International and Sapphire Foods come in. These two companies are the powerhouses behind your favourite quick-service restaurants, operating hundreds of outlets across India and even overseas.

    In this blog, we’ll break down who they are, how they got started, and how they stack up against each other financially. Think of it as a behind-the-scenes look at the business of burgers, pizzas, and beyond!

    Devyani International – An Overview 

    Devyani International Ltd. (DIL) is one of the biggest names in India’s quick service restaurant (QSR) space. If you’ve ever grabbed a bite from KFC, Pizza Hut, or Taco Bell in India, chances are it was operated by them! They’re one of the largest franchisees of Yum! Brands in the country and also run some homegrown food brands like Vaango, The Food Street, and Masala Twist.

    A Quick Look at Their Journey

    • Started in 1991, Devyani International is part of the RJ Corp Group, headed by Ravi Jaipuria, a major player in the food and beverages industry.
    • They teamed up with Yum! Brands early on, bringing Pizza Hut and later KFC to Indian diners.
    • In 2011, they launched Vaango, their own South Indian vegetarian restaurant chain.
    • Over the years, they expanded outside India too, you’ll find their outlets in Nepal and Nigeria.
    • Currently, the company operates 941 KFC restaurants, 572 Pizza Hut outlets and 179 Costa Coffee stores in India.
    • In 2021, they went public with a highly successful IPO, and their shares were listed on the NSE and BSE.
    • Since then, they’ve been growing fast, opening new outlets in big cities and small towns alike, and putting a lot of focus on online orders and delivery.

    Sapphire Foods – Overview 

    Sapphire Foods is one of the big names behind some of your favourite quick-service restaurants in India and nearby countries. They run a large number of KFC, Pizza Hut, and Taco Bell outlets across India, Sri Lanka, and the Maldives. So, if you’ve ever enjoyed a crispy bucket of chicken or a cheesy slice of pizza, there’s a good chance Sapphire Foods was behind it.

    A Quick Look at Their Journey

    • The company was initially incorporated as Samarjit Advisors Pvt. Ltd in 2009, but was later renamed as Sapphire Foods in 2015.
    • In 2015, the company made a big move by acquiring over 270 KFC and Pizza Hut stores in India and Sri Lanka.
    • Since then, they’ve grown fast, opening restaurants in more than 106 cities and spreading to places like Sri Lanka and the Maldives too.
    • Currently, the company operates 429 KFC restaurants and 319 Pizza Hut outlets in India.
    • In 2021, they went public, and their shares were listed on the Indian stock markets.

    Read Also: Swiggy Vs Zomato: Business Model, Marketing Strategies, Strengths, and Financials Compared

    Comparative Study: Devyani International vs. Sapphire Foods

    ParticularsDevyani InternationalSapphire Foods
    Current Price₹177₹316
    Market Capitalization (₹ Crores)21,35110,167
    52-Week High₹223₹401
    52-Week Low₹130₹242
    FII Holdings as of March 202510.46%30.42%
    DII Holdings (as of March 2025)16.87%38.51%
    Book Value₹9.66₹42.4
    PE Ratio1,592413
    (Data as of 6 May 2025)

    Financial Statements Comparison of Devyani International and Sapphire Foods 

    Income Statement 

    ParticularsDevyani InternationalSapphire Foods
    Total Income3,5882,627
    Total Expenditure3,3982,456
    EBIT190170
    Net Profit-951
    (All the values are in INR crores unless stated otherwise)
    Income Statement of Devyani International and Sapphire Foods  

    Balance Sheet

    ParticularsDevyani InternationalSapphire Foods
    Current Liabilities911444
    Non-Current Liabilities2,6731,056
    Current Assets486363
    Non-Current Assets4,4462,477
    Equity Share Capital12064
    Reserves & Surplus9101,275
    (All the values are in INR crores unless stated otherwise)
    Balance Sheet of Devyani International and Sapphire Foods  

    Cash Flow Statements

    ParticularsDevyani InternationalSapphire Foods
    Cash Flow from Operating Activities592448
    Cash Flow from Investing Activities-1,550-186
    Cash Flow from Financing Activities889-212
    (All the values are in INR crores unless stated otherwise)
    Cash Flow Statements of Devyani International and Sapphire Foods  

    Key Performance Indicators (KPIs)

    ParticularsDevyani InternationalSapphire Foods
    Basic EPS (₹)0.398.30
    Operating Profit Margin (%)8.276.58
    Net Profit Margin (%)-0.272
    Return on Equity (%)4.483.94
    Return on Capital Employed (%)7.317.13
    Debt-to-Equity (x)0.860.02

    Devyani International vs Sapphire Foods: Which Company is Better? 

    Honestly, it depends on what you’re looking at.

    If we’re talking size and revenues, Devyani International definitely has the edge. It runs more outlets, makes more money, and has a few extra brands under its belt. It’s also been in the game longer, which shows in its wider reach and stronger numbers. However, the business reported a net loss in March 2024.

    But Sapphire Foods isn’t far behind. It’s growing steadily, runs high-performing outlets, and has a solid presence in international markets like Sri Lanka and the Maldives. It seems to focus more on quality over quantity and is playing the long game.

    So, is one better than the other? 

    Devyani is winning on scale and operating margins, and Sapphire has a significantly higher EPS. It is hard to pick one as both companies have long-term potential if you’re betting on India’s growing appetite for fast food. 

    Inference:

    1. Devyani operates more outlets across countries, which reflects in its higher revenue.
    2. Sapphire is more focused on efficiency and operates stores in select international markets like Sri Lanka and the Maldives.
    3. Devyani International posted a net loss of ₹9 crores in March 2024, in contrast to a net profit of ₹51 crores for Sapphire Foods.
    4. Both companies are strong franchise operators for Yum! Brands, but Devyani also operates some in-house brands, which gives the company more diversification.

    Based on the above information, deciding between the two companies for investment can be a tough decision and it is advised to consult a financial advisor before investing.

    Read Also: ITC vs HUL: Comparison of India’s FMCG Giants

    Conclusion 

    Both Devyani International and Sapphire Foods are doing a great job serving millions of customers across India and beyond. While Devyani is ahead in terms of revenues and number of outlets, Sapphire is playing it smart with a focus on growth and efficient operations.

    At the end of the day, whether you’re grabbing a crispy KFC bucket or biting into a cheesy Pizza Hut slice, you’re enjoying the results of two well-run companies working hard behind the scenes. So next time you’re at one of these places, you’ll know a bit more about the business that’s serving you. When it comes to selecting between the two, it can be a tricky decision and it is advised to consult a financial advisor before investing.

    Frequently Asked Questions (FAQs)

    1. Who owns Devyani International?

      It’s part of the RJ Corp group, which is headed by Ravi Jaipuria, a well-known name in the food and beverage world.

    2. Devyani International vs Sapphire Foods: Which company is bigger?

      Devyani International is ahead right now since it has more outlets, more revenue, and a higher market capitalization.

    3. Do Devyani International and Sapphire Foods operate outside India too?

      Yes! Devyani has a presence in Nepal and Nigeria, while Sapphire is active in Sri Lanka and the Maldives.

    4. Who has more stores in India?

      Devyani International, by a good margin. They are operating over 1,600 outlets, while Sapphire has around 700 outlets.

    5. How can I invest in Devyani International and Sapphire Foods?

      Both companies are listed and available for retail investors to invest if you’re interested in the food and QSR space. But do not forget to consult your financial expert before making any investment decision. 

  • Ather Energy Case Study: Business Model, Financials, and SWOT Analysis

    Ather Energy Case Study: Business Model, Financials, and SWOT Analysis

    Ather Energy offers modern electric scooters that come with advanced technology to attract customers looking for sustainable and smart mobility solutions. From their eye-catching design to advanced features and the growing network of charging stations, Ather is a name that’s gaining popularity in the EV space.

    In this blog, we will learn about how they’re revolutionizing the EV space and their strengths. Furthermore, we will analyze their business model, risks, and the marketing strategy they use to keep their customer base growing. 

    Ather Energy: An Overview 

    Ather Energy is an Indian startup that’s reimagining what electric scooters can be. They’re not just building EVs, but are making them smart, stylish, and internet-connected two-wheelers that are fun to ride and good for the planet. From the sleek design to the technology-packed dashboard and even their charging network (called Ather Grid), they’ve built everything in-house with a clear focus on quality and user experience.

    Their scooters, such as the Ather 450S, 450X, and the high-performance 450 Apex, have a futuristic design, great performance, and make city commutes easy and convenient. 

    Ather Energy

    A Brief History 

    A brief history of the Ather Energy is given below:

    • 2013: Ather was started by two IIT Madras graduates, Tarun Mehta and Swapnil Jain, who wanted to build India’s first truly smart electric scooter. It was a forward-thinking idea, as EVs are eco-friendly, but they hadn’t gained popularity at the time.
    • 2014–2015: After getting support from IIT Madras and early investors (including Flipkart’s founders), Ather started to pick up steam. Hero MotoCorp also came on board, giving them a strong boost.
    • 2018: After years of research and hard work, Ather launched its first scooters, the Ather 340 and Ather 450, in Bangalore. These weren’t your average scooters as they had touchscreen dashboards, onboard navigation, and were connected to the cloud, which attracted people’s attention.
    • 2020: Enters the Ather 450X: faster, smarter, and more powerful. Ather began expanding beyond Bangalore and brought its scooters to other cities across India.
    • 2021–2023: Ather kept growing, opening new showrooms (they call them “Experience Centres”) and expanding their charging network. They also rolled out Over-The-Air (OTA) software updates for your scooter, just like your smartphone.

    At its core, Ather is all about changing the way we move. They’re building electric scooters that people want to ride, not just because they’re sustainable, but because they’re fun, fast, and packed with tech. It’s the kind of company that’s not just thinking about the next scooter; instead, they’re thinking about the future of commuting.

    Read Also: Ola Electric Case Study: Business Model, Financials, and SWOT Analysis

    Business Model of Ather Energy

    The business model of Ather Energy can be summarized in the following 5 points:

    1. Direct Sales of Smart Electric Scooters

    This is the core of their business. Ather designs and manufactures electric scooters like the 450S, 450X, and 450 Apex, and sells them through:

    • Company-owned Experience Centres
    • Franchise-owned retail outlets
    • Online platform (you can book a test ride or buy directly)

    They focus on premium, technology-heavy scooters that attract urban commuters who want performance and sustainability in one.

    2. Ather Grid – Charging Infrastructure

    Ather has built its public charging network called Ather Grid, which is available in multiple cities. It was free to use initially, but currently Ather charges ₹1/min + GST. This helps support not just Ather owners, but eventually the wider EV community too.

    3. Subscriptions & Services

    Ather offers monthly plans for smart features on its scooters, including:

    • Navigation
    • Remote diagnostics
    • Ride statistics
    • OTA (Over-the-Air) software updates
    • Ather Connect app access

    These plans range from basic to pro-level, giving users a choice and recurring revenue for the company.

    4. After-Sales & Servicing

    They run a strong after-sales network with doorstep service options and maintenance plans. Customers can sign up for;

    • Annual service packages
    • Extended warranty
    • Roadside assistance

    5. Strategic Partnerships & B2B Opportunities

    Ather also explores:

    • Partnerships with corporates, delivery fleets, and tech platforms
    • Collaborations with governments for EV adoption incentives
    • EV financing and insurance tie-ups through third parties

    Read Also: Suzlon Energy Case Study: Business Model, Financial Statement, SWOT Analysis

    Marketing Strategy of Ather Energy

    1. Experience-First Marketing

    Instead of hard selling, Ather focuses on letting people experience the product:

    • They’ve built “Experience Centres” in cities across India—not just showrooms but interactive spaces where people can test-drive, explore the tech, and learn about EVs.
    • Test rides are important to convert potential customers. Once people try the scooter, they often get hooked on the performance and features.

    2. Strong Brand Positioning

    Ather positions itself as:

    • Premium but not luxury
    • Tech-driven and futuristic
    • Sustainable without being preachy

    3. Content & Digital Marketing

    Ather is heavy on content, using platforms like YouTube, Instagram, and LinkedIn to:

    • Showcase real user stories
    • Share product explainer videos
    • Post behind-the-scenes R&D and software updates
    • Educate the public on EVs and sustainability

    They make complex concepts, such as battery efficiency and range, easy to understand and fun to follow.

    4. Word-of-Mouth & Community Building

    Ather has cultivated a passionate user base that spreads the word:

    • They host community rides, events, and meetups
    • There’s even a name for their fanbase—“Ather Community”
    • Existing users often act as unofficial brand ambassadors

    They also listen closely to customer feedback, which builds trust and loyalty.

    5. Localized Launch Campaigns

    When entering new cities, Ather runs targeted marketing campaigns that combine:

    • Outdoor ads (billboards, bus stops, metro stations)
    • Digital ads focused on local demographics
    • Local influencer collaborations and test ride events

    Financials Analysis of Ather Energy

    Income Statement

    ParticularsFY 2024FY 2023FY2022
    Total Income1,789.101,801.80413.8
    Total Expenses2,674.202,666.30757.9
    Loss for the Year-1,059.70-864.5-344.1
    (All the figures mentioned above are in INR crores)

    Balance Sheet

    ParticularsFY 2024FY 2023FY 2022
    Total Non-Current Assets684.1668.5526.1
    Total Current Assets1229.41308.3292.5
    Non-Current Liabilities291.2343.6199.3
    Current Liabilities1076.41019.5394.4
    (All the figures mentioned above are in INR crores)

    Cash Flow Statement

    ParticularsFY 2024FY 2023FY2022
    Net Cash Used in Operating Activities-267.60-871.30-228.4
    Net Cash Used in Investing Activities-228.10-135-6.6
    Net Cash Generated from Financing Activities633.21,317.40230.7
    (All the figures mentioned above are in INR crores)

    Important Highlights

    • Profitability: The company remains in a loss-making phase, but the narrowing losses in FY24 are a positive sign.
    • Cash Flow Concerns: The increasing cash burn and rising debt levels highlight the need for prudent financial management.
    • Market Dynamics: Ather’s market share has slightly declined, indicating intensified competition in the E2W segment.
    • Strategic Investments: The IPO funds are meant for expansion and innovation, which are critical for long-term growth.

    SWOT Analysis of Ather Energy

    SWOT Analysis of Ather Energy

    Strengths

    • In-house innovation: Ather designs and builds most of its components, such as batteries, software, and dashboards, which gives it better quality control and a unique product.
    • Strong brand image: Seen as premium, tech-savvy, and futuristic, it is one of the few EV brands in India that is well-known.
    • Smart features & connectivity: OTA updates, touchscreen dashboards, app integration, these things make Ather scooters feel like the “iPhones of EVs.”
    • Ather Grid charging network: Building its fast-charging network gives Ather a big edge in convenience and customer loyalty.
    • Loyal customer base: Ather has created a passionate community of users who often promote the brand through word-of-mouth.

    Weaknesses 

    • Higher price point: Compared to traditional scooters or entry-level EVs, Ather scooters are pricey, which can limit public adoption.
    • Limited service & retail network (in some areas): Despite expanding fast, Ather still doesn’t have the reach of legacy two-wheeler brands.
    • Dependence on urban markets: The product positioning is heavily tailored around urban, tech-forward consumers, and is not as appealing in rural or price-sensitive markets.
    • Production scale limitations: Compared to giants like Hero or Bajaj, Ather still has a relatively small manufacturing footprint.

    Opportunities 

    • Expanding into Tier 2 & Tier 3 cities: As awareness about sustainability and EV infrastructure improves, these areas are becoming more open to the adoption of EVs.
    • Launching more affordable models: A more budget-friendly scooter could open up a much wider customer base.
    • Fleet and delivery partnerships: Tapping into B2B use (like food delivery or ride-share fleets) can boost volume and visibility.
    • Global expansion: Ather has the potential to enter Southeast Asia or Africa, where EV two-wheelers are starting to gain traction.
    • Government policies & incentives: Ongoing support for EVs (like FAME II) helps reduce prices and boost demand.

    Threats 

    • Tough competition: Legacy brands (like TVS, Bajaj, Ola Electric, and Hero) are now in the EV race with huge budgets and distribution power.
    • Policy changes: If government subsidies are reduced or withdrawn, prices may rise, and demand could slow.
    • Battery/raw material supply chain issues: Global shortages or rising costs of lithium and other EV materials could impact production.
    • Customer expectations rising fast: As EV adoption grows, customers expect faster charging, longer range, and lower prices, which makes staying ahead a constant challenge.

    Read Also: Tata Motors Case Study: Business Model, Financials, and SWOT Analysis

    Conclusion 

    Ather Energy has created a unique space for itself in India’s electric vehicle market by focusing on innovation, quality, and smart technology. With its bold design, internet and bluetooth connected features, and strong community of users, Ather has gone beyond just building scooters and helped spark a movement toward smarter, cleaner mobility. While the brand faces tough competition and some challenges, its commitment to continuous improvement and customer experience keeps it ahead on the road to success. If Ather can keep balancing performance, price, and reach, it’s well on its way to becoming a household name in the future of urban transport.

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    Frequently Asked Questions (FAQs)

    1. How do you charge an Ather scooter?

      You can charge at home or use Ather Grid, their fast-charging network available in many cities.

    2. Is Ather more expensive than other scooters?

      Yes, it’s priced higher than average, but it offers advanced tech, performance, and low running costs.

    3. Can I buy Ather scooters online?

      Yes, you can book online and choose home delivery or pickup from a nearby Ather’s Experience Centre.

    4. When is the Ather Energy IPO open for subscription?

      The IPO opened on April 28, 2025, and will close on April 30, 2025.

    5. Is Ather Energy profitable?

      No, Ather Energy is currently not profitable. The company plans to use the IPO proceeds to scale operations and reduce debt.

  • Blinkit Case Study: Business Model, Financials, and SWOT Analysis

    Blinkit Case Study: Business Model, Financials, and SWOT Analysis

    In today’s fast-paced world, convenience isn’t just a luxury; it’s a must. That’s why online grocery delivery services have exploded in popularity, with Blinkit (you might remember it as Grofers) leading the charge. As life gets busier, more of us are looking for ways to save time without compromising on quality.

    In this blog, we’re taking a closer look at Blinkit’s journey: the wins, the hurdles, and the technology behind their 10-minute grocery delivery promise. Moreover, we will learn about what makes Blinkit keep going and what it says about where e-commerce is headed.

    Blinkit: An Overview 

    Blinkit didn’t pop up overnight. It all started in 2013 when Grofers was founded by Albinder Dhindsa and Saurabh Kumar, with a focus on making grocery shopping simpler. Over time, they grew beyond groceries, offering everything from household essentials to personal care products.

    Their shift from Grofers to Blinkit wasn’t just a name change; instead, it marked a whole new way of thinking. The company moved from regular delivery schedules to an instant delivery model, perfect for customers who don’t like to wait.

    At the heart of Blinkit’s operations are dark stores: local, hyper-efficient warehouses packed with products ready for speedy dispatch. Their model depends heavily on smart technology, data-driven logistics, and a hyperlocal supply chain to make those ultra-fast deliveries possible.

    Business Model of Blinkit

    Here’s how it all works:

    1. Dark Stores Are the MVPs

    Instead of sourcing your groceries from big warehouses far away, Blinkit uses small local warehouses called dark stores. These mini-warehouses are packed with popular items and are spread all over the city, so whenever you place an order, it’s already close to you.

    2. Smart Technology Behind the Scenes

    Blinkit isn’t just about fast legs; it’s about fast brains, too. Their systems predict what their customers are likely to order, so dark stores stay stocked with exactly what customers want when they want it. Also, real-time inventory updates mean you don’t end up ordering something that’s out of stock.

    3. Delivery 

    Most deliveries are done on electric vehicles. It’s not just speedy, it’s also a lot more eco-friendly than sending out trucks for small orders.

    How Blinkit Makes Money?

    Blinkit generates revenue through:

    • Delivery Fees: Sometimes you pay a small delivery fee, especially if your order value is small.
    • Product Margins: Just like regular stores, Blinkit makes a margin on every item it sells.
    • Partnership Deals: Brands sometimes pay Blinkit to promote certain products in the app, like those “featured” snacks you suddenly feel like buying.

    Blinkit’s business model is all about thinking small (local warehouses) to deliver big (instant convenience).

    Read Also: Zepto Case Study: Business Model, Financials, and SWOT Analysis

    Marketing Strategy of Blinkit

    Blinkit knows that getting your groceries fast is great, but first, they have to make sure you think of them when you’re hungry, running low on essentials, or just too lazy to go to the store. These objectives are achieved through their high performing marketing team. Their marketing campaigns are all about speed, relatability, and showing up exactly when you need them.

    1. Speed is the Focus 

    Blinkit’s main selling point is its superpower: 10-minute delivery, and they make sure you never forget it. Every campaign, every ad, every social media post reminds you that whatever you need, you can get it faster than making a cup of tea. Their famous tagline? “Everything Delivered in Minutes.” Simple, catchy, and perfectly on-brand.

    2. Memes, Humour, and Real Talk on Social Media 

    Blinkit doesn’t act like a serious company online. Their social media is filled with memes, funny tweets, pop culture references, and jokes with which you can completely relate. They know their audience well: busy millennials, students, young professionals, and their campaigns speak to them.

    Some examples:

    • Funny tweets about last-minute cravings.
    • Relatable memes about running out of snacks at 2 AM.
    • Quick polls and questions that start conversations to keep the brand relevant among customers.

    3. Influencers That Feel Like Friends

    Instead of throwing money at huge celebrities, Blinkit often teams up with relatable influencers who are the ones you feel like you could have a coffee with. Collaborating with local influencers for promotions helps Blinkit establish an instant connection with its clients.

    4. Targeted Promotions

    Blinkit knows when you’re most likely to crave a quick grocery run, such as just before dinner, late-night for snacks or during a Sunday afternoon. They send well-timed push notifications, app alerts, and discounts to nudge you right when you’re most likely to click “Order Now,” which is a smart and exceptional business strategy.

    Read Also: Swiggy Vs Zomato: Business Model, Marketing Strategies, Strengths, and Financials Compared.

    Read Also: Blinkit vs Zepto: Which is Better?

    Financial analysis of Blinkit

    Financial Metrics FY 2024 FY 2023 FY 2022
    Revenue             
    (₹ crores)    		2,301724.2236.1 
    Net Profit          
    (₹ crores)    		Data not disclosed(1,078.9)(1020.1)

    Inference 

    Blinkit’s revenue numbers have been moving in the right direction. Credit goes to more people jumping on the instant delivery bandwagon (especially in big cities). Blinkit’s sales have grown steadily year after year. Their partnership with Zomato (who now owns Blinkit) gave them a huge boost both financially and strategically. It helped Blinkit access more resources, better technology, and a massive customer base already used for quick deliveries.

    Key Highlights 

    • Gross Order Value (GOV): ₹12,469 crore, which is a huge 93% jump compared to last year!
    • Total Orders: They completed 203 million orders, growing by 71% year-on-year.
    • Monthly Active Customers: Blinkit now serves around 5.1 million active customers each month, which is a 73% increase!
    • Average Daily GOV per Store: On average, each store pulled in about ₹7,97,000 every day
    • Number of Stores (as of March 2024): They’ve expanded to 526 stores, adding 149 new ones this year.
    • Warehouse Space: Their warehousing capacity hit 4.8 million square feet, growing by 28%. That’s a lot of room for snacks and veggies!

    The company posted an adjusted EBITDA loss of ₹103 crore, which is about 15.7% higher than the ₹89 crore loss they reported in Q3 last year. To compare, Blinkit’s loss in the previous quarter (Q2 FY25) was much lower, just ₹8 crores.

    The bump in losses isn’t too surprising either, as the quick commerce space is growing fast, and Blinkit faces tough competition, from players like Zepto, Swiggy Instamart, Flipkart Minutes, Bigbasket now, JioMart, and even Amazon getting ready.

    Read Also: D Mart Case Study: Business Model and Marketing Strategy

    SWOT Analysis of Blinkit

    Strengths 

    • Lightning-Fast Delivery: Blinkit’s biggest flex is its promise of delivering essentials in under 10 minutes. That’s a serious game-changer for busy, convenience-loving customers.
    • Strong Brand Recognition: After rebranding from Grofers, Blinkit made sure everyone knew its name, especially through smart social media campaigns and catchy promotions.
    • Smart Tech and Logistics: Behind the scenes, Blinkit runs on the latest technology, which includes real-time inventory tracking, AI-powered demand prediction, and optimized delivery routes.
    • User-Friendly App: Their app is easy to navigate, quick to recommend your favourite things, and packed with a wide variety of products.

    Weakness

    • High Operational Costs: Superfast deliveries aren’t cheap. Setting up multiple dark stores and maintaining a large delivery fleet burns cash.
    • Limited Product Range: Compared to full-fledged grocery stores or hypermarkets, Blinkit’s product variety can feel a bit limited, especially in non-metro areas.
    • Service Area Restrictions: Instant delivery works best in big cities. Expanding to smaller towns without losing speed is a real challenge.

    Opportunities 

    • Expansion into New Cities: There’s still a huge untapped market in Tier 2 and Tier 3 cities if Blinkit can crack the logistics puzzle.
    • More Product Categories: Blinkit could start delivering other things too, like pharmacy items, bakery items, quick bites, flowers, etc.
    • Sustainability Push: Eco-friendly delivery methods like electric bikes and green packaging could win over today’s environment-conscious customers.

    Threats 

    • Fierce Competition: The grocery delivery war is heating up, with players like BigBasket, Zepto, and even Swiggy Instamart fighting for the same customers.
    • Thin Profit Margins: Fast delivery models are expensive, and profits can be razor-thin if costs aren’t carefully managed.
    • Changing Customer Expectations: Today, it’s 10 minutes. Tomorrow, people might expect groceries in 5 minutes. This can be harmful to the delivery person as keeping up with rising demands could get tricky as well as risky.

    Read Also: Zomato Case Study: Business Model, SWOT Analysis, and Financials Explained

    Conclusion 

    Blinkit’s journey from Grofers to a 10-minute delivery giant shows just how important it is to stay flexible and keep the customer at the heart of everything. By embracing new technology, rethinking logistics, and staying focused on user experience, Blinkit isn’t just keeping up; they’re setting the pace. As the battle for instant delivery heats, the company’s ability to innovate, adapt, and keep customers at the heart of everything they do will decide how far they can go.

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    Frequently Asked Questions (FAQs)

    1. What is Blinkit?

      Blinkit (formerly Grofers) is a company that offers services to deliver groceries and other essentials to your doorstep, usually in 10 minutes or less!

    2. How does Blinkit deliver so fast?

      They have small local warehouses (called dark stores) scattered across cities, so your order is packed and sent from a spot close to you.

    3. What can I order on Blinkit?

      Almost everything you’d find at a neighbourhood grocery store — fruits, veggies, snacks, dairy, cleaning supplies, personal care items, and more.

    4. Where is Blinkit available?

      Right now, Blinkit mainly operates in big cities and metro areas across India and they’re expanding fast. 

    5. Is there a delivery charge?

      Sometimes! Small orders might have a delivery fee, but bigger orders often get a free delivery. 

  • BluSmart Shutdown & Gensol Scam: ₹262 Crore Scam That Shook India’s EV Sector

    BluSmart Shutdown & Gensol Scam: ₹262 Crore Scam That Shook India’s EV Sector

    India’s electric vehicle revolution makes up a vital component of the country’s journey towards zero carbon emissions. The EV movement started when companies Gensol Engineering and BluSmart Mobility introduced their plans for sustainable technology-based zero-emission cab rides in the metro cities of India. 

    Who knew that the clean-technology ecosystem of India would face substantial damage because of financial mismanagement, alongside fund diversion and regulatory misconduct discovered behind its eco-friendly exterior?

    This blog explores the BluSmart-Gensol scam, along with the resulting consequences and its implications on India’s electric vehicle industry.

    Background on Gensol Engineering & BluSmart

    Gensol Engineering: Founded in 2007 and based in Ahmedabad, Gensol Engineering Limited focuses on delivering integrated solar energy solutions. They offer services like engineering, procurement, and construction for solar projects. They also provide technical consultancy and carbon credit advisory services.

    In recent years, Gensol has ventured into electric vehicle manufacturing and leasing to deliver clean energy transportation solutions.

    BluSmart Mobility: Back in 2019, Anmol Singh Jaggi, Puneet Singh Jaggi and Puneet K Goyal came together to start BluSmart Mobility. It was established as India’s first ride-hailing service that was completely electric.

    The company operates mainly in urban hubs such as Delhi NCR, Mumbai, and Bangalore, and provides a fleet of electric vehicles that promote zero-emission transportation solutions. It also got attention from big players like BP Ventures and ResponsAbility Investments, who decided to invest in it. The company also collaborated with Tata Motors and Tata Power for buying 10,000 EVs and development of electric charging infrastructure respectively.

    The business operations of Gensol Engineering and BluSmart Mobility were closely-connected to each other. Here is how they are related;

    • Anmol Singh Jaggi plays an important role in both companies, i.e., he is the managing director of Gensol Engineering and a Co-founder of BluSmart Mobility. His brother, Puneet Singh Jaggi, is also a key management personnel in both companies.
    • Gensol Engineering offered financial backing and essential infrastructure for BluSmart’s operations.
    • Gensol provided electric vehicles and the technology setup that BluSmart needed for operating their fleet of EVs. BluSmart’s operations relied significantly on Gensol for both vehicle procurement and maintenance. 

    Timeline of the Gensol-BluSmart Scam 

    SEBI conducted a forensic investigation in April 2025 that revealed a multi-crore financial scam triggered by the promoters of Gensol Engineering through improper EV financing, which affected BluSmart Mobility’s business operations directly. Gensol presented itself as an innovative ESG-centric company until its fraudulent actions became widely known, thereby creating doubt on sector governance and regulatory scrutiny practices in India.

    The timeline of the scam is as follows:

    1. Loans Taken for the Procurement of EV

    Gensol took out a loan of ₹978 crore from different lenders, two of which were government-backed IREDA and PFC. The money was supposed to be used to buy electric cars and lease them to BlueSmart Mobility. 

    2. Diversion of Funds

    Rather than being allocated for the purchase of electric vehicles, a major portion of the funds was redirected to buying luxury real estate, personal expenses unrelated to business activities, and only a fraction of the EVs were procured. 

    3. Layering & Cover-Ups 

    The money trail was deliberately concealed using a network of shell companies and a series of intercompany transactions.

    BluSmart made it look like they had more leased electric vehicles than they did, probably to bring in more investments.

    Read Also: Scam 1992: Harshad Mehta Scam Story

    How Was The Scam Uncovered?

    A detailed timeline about how the scam came to light is mentioned below:

    1. On March 3 and 4, 2025, the credit rating agencies Care Rating Limited and ICRA Ltd. decided to lower the credit ratings they gave for the company’s loans and credit options. They dropped the ratings to ‘D’, the lowest rating possible because the company was behind on its debt payments. 

    2. ICRA stated that documents shared by Gensol regarding its debt servicing were falsified, raising concerns about its corporate governance and liquidity position. 

    3. On March 5, 2025, Gensol put out an investor release on the stock exchange, and it was signed by their CEO, Anmol Singh Jaggi. In this release, the company clarified that it had no involvement in the falsification claims made by the rating agencies. 

    4. SEBI then asked the credit rating agencies for information about the downgrade of the ratings given to Gensol. 

    5. The CRAs mentioned that, based on recent news about BluSmart Mobility (which is connected to Gensol) defaulting on bond payments on February 24, 2025. This kicked off a review of the ratings assigned to the instruments of Gensol.

    6. The CRAs mentioned that when they asked for the term loan statements, Gensol gave them statements from all the lenders except for the IREDA and PFC. However, Gensol shared some conduct letters that supposedly came from these two companies. These letters mentioned that Gensol has been keeping up with its loan payments.

    7. CARE mentioned that Gensol asked to take back the ratings that were given to them. To back this up, Gensol provided a no-objection certificate that they claimed was issued by their lenders.

    8. However, after checking with IREDA and PFC about the conduct letters and NOCs, both lenders denied issuing such letters. SEBI then requested detailed information from the lenders about the debt service status of loans granted to Gensol, including loan sanction letters and account statements.

    9. After looking over the details from the lenders mentioned, it was noticed that the company has had several instances where it did not keep up with the loan payments.

    10. It was noted that out of ₹ 977.75 crores taken as loan by the company from IREDA and PFC as term loans, ₹663.89 crores was for buying 6,400 electric vehicles.

    11. In its response, Gensol admitted that it had acquired only 4,704 electric vehicles, falling short of the 6,400 EVs for which it had previously obtained funding. Additionally, Go-Auto Private Limited confirmed that it sold 4,704 EVs to the company for a total of ₹567.73 crores. After this, the financial statements of both companies were examined. Upon examination, it was observed the company has also availed the additional equity contribution of 20%, taking their total loan amount to ₹829.86 crores. Based on these figures, the company only used ₹567.73 crores out of ₹829.86 crores, which shows ₹262.13 crores of funds unaccounted for.

    12. The analysis revealed that after the money was sent from Gensol to Go-Auto to buy electric vehicles, it often ended up with Gensol or was sent to companies linked to Anmol Singh Jaggi and Puneet Singh Jaggi, who are the promoters and directors of Gensol, which was later used for unrelated expenses. 

    13. The promoters of Gensol used funds to buy a luxury apartment in the Camellias, DLF, Gurgaon. This was achieved through layered transactions, and the apartment is owned by a firm named Capbridge Ventures LLP, whose designated partners are Anmol Singh Jaggi and Puneet Singh Jaggi.

    14. Looking at how Gensol used the loans they got from the lenders, SEBI concluded that the company did not handle the funds properly and barred the company’s promoters from securities markets and from holding any key position in any listed company.

    Read Also: Satyam Scam Case Study: Know The Story Indians

    Impact of Gensol-BluSmart Scam on Stakeholders

    Impact of Gensol-BluSmart Scam on Stakeholders

    The impact of the Gensol-BluSmart scam on stakeholders is mentioned below:

    1. Financial Losses & Loss of Trust 

    Equity Investors, like BP Ventures and responsAbility, took some big hits on their valuations. Gensol’s stock price fell, causing significant losses for shareholders. Venture capital firms are taking a fresh look at how they can better evaluate green energy startups in India. 

    2. Sudden Unemployment 

    Thousands of drivers suddenly found themselves without jobs when BluSmart decided to halt its operations. There has been no clear information on severance packages, any outstanding bonuses, or if they are planning to take back the vehicles. A lot of drivers were dependent on their jobs to pay loans or support their families. 

    3. Service Disruption & Refund of Wallet Balances 

    Riders with prepaid credits in their BluSmart wallet accounts experienced a complete service outage. The company has pledged to issue refunds within 90 days; however, trust has been eroded. People are now unsure about trusting new green mobility apps that do not show much transparency. 

    4. Possible NPAs & Regulatory Backlash

    Banks & NBFCs that lent money to Gensol for their EV fleet are now facing issues with loans that are not being paid back, which have now become NPA. 

    Consequences 

    The consequences of the Gensol-BluSmart scam are mentioned below:

    1. The two brothers are now prohibited from serving as directors or in key management roles at Gensol or any other publicly listed company until further notice. 

    2. They are prohibited from buying and selling or trading any securities, in any form or manner, until further notice. 

    3. If they have any open positions in exchange-traded derivatives contracts as of the date of the Order, they are required to close or square off these positions within 7 days of the Order date or by the contract’s expiration, whichever happens first. 

    4. The parties involved are allowed to settle their payment obligations for transactions that happened before the end of the trading on the date of the Order. 

    Implications for India’s EV Sector

    The Gensol-BluSmart scam has had a negative impact on the India’s EV sector as highlighted below:

    • Investor Sentiment Dented – Global investors who were enthusiastic about India’s green mobility efforts are now being a bit more careful. ESG investments are going to need stricter audits and transparency. Early age EV startups may encounter hurdles when it comes to securing funding. 
    • Expect Stricter Regulatory Oversight – One can expect tighter regulations coming from SEBI, RBI and NITI AYOG regarding, use of EV related loans and subsidies, fleet ownership documentation, etc. 
    • Trust Deficit Among Stakeholders – EV ride-hailing companies may now struggle to bring new drivers on board. Customers might be stressed about getting refunds and whether they will get reliable services. 

    To sum it up, although this incident is certainly a negative event, India’s EV ambitions, such as achieving 30% EV adoption by 2030, remain intact. 

    Conclusion

    The Gensol-BluSmart scam is an important event for the EV sector as the company’s unethical practices have resulted in erosion of investor trust. However, the scam will not stop India’s EV mission, but is an opportunity to create a more transparent and accountable environment that attracts investors. The upcoming EV growth phase depends heavily on the development of advanced technologies alongside transparent accounting practices.

    Read Also: Financial Scams in India: Types, Resolution, and Awareness

    Frequently Asked Questions

    1. What is the Gensol Engineering scam about?

      It is about the company’s misuse of funds acquired for purchase of EVs for personal use and unrelated business expenses. 

    2. Who are the key people involved in the scam?

      Anmol Singh Jaggi and Puneet Singh Jaggi, directors of Gensol, are the key people involved in the scam.

    3. How is BluSmart connected to the scam?

      BluSmart leased EVs from Gensol and allegedly overstated EV leasing numbers to inflate its fleet size and operational capacity. 

    4. What action did SEBI take against Gensol Engineering promoters?

      SEBI banned the Jaggi Brothers from serving as a key management personnel of any publicly listed company and barred them from the securities market. 

    5. What cities were affected by BluSmart’s shutdown?

      Major cities like Delhi NCR and Bengaluru were affected by the BluSmart shutdown.

  • Zepto Case Study: Business Model and SWOT Analysis

    Zepto Case Study: Business Model and SWOT Analysis

    In the ever-evolving world of rapid delivery services, Zepto is a notable case as it has solved two major problems, i.e. convenience and speed. The company’s commitment to 10-minute delivery services has made it a key player in the quick commerce segment. 

    In this blog, we will cover the marketing strategy, business model, financials of Zepto, and a holistic SWOT analysis of Zepto. This will enable us to analyze the future growth prospects of Zepto.

    Zepto: An Overview

    Zepto was launched in July 2021 by Aadit Palicha and Kaivalya Vohra with the aim to deliver groceries in less than 10 minutes to its customers. Their claim of ten minutes grocery delivery has led to a surge in demand by users in the urban areas. The founders of Zepto are Stanford University dropouts who chose to launch Zepto in 2021 after securing funding from Contrary, a San Francisco-based venture capital firm. 

    Initially, the business was branded as KiranaKart and its business model relied on partnership with local kirana stores for grocery delivery. However, the business didn’t perform as expected, which led to a complete overhaul of the business model. The business was rebranded as Zepto, which focused on building ‘dark stores’ across the country to fulfill orders. This shift in business model helped them deliver groceries in under 10 minutes.  

    In 2022, Zepto launched Cafe, its coffee and ready-to-eat food delivery division focused on the demands of the urban population. The company also launched Bloom and Harvest Hero for farmers for better farm management and delivery of related products.

    This case study will make you familiar with the innovative strategy, efficient business model, marketing tactics, finances, and SWOT analysis of Zepto. 

    Zepto Business Model Approach

    Quick Commerce

    Zepto employs innovative quick commerce strategies to provide 10-minute delivery of groceries and essential items, leveraging strategically placed ‘dark stores.’ These dark stores, which serve as mini-warehouses, are stocked with frequently purchased items and located in proximity to high customer populations. 

    Zepto Sources of Revenue

    The sources of revenue for Zepto are tailored around a variety of products as follows: 

    • Sales of Products – Groceries and daily essentials, which are sold directly to the buyers.
    • Delivery Costs – Collection of varied delivery fees according to the size of the order and the distance. 
    • Subscription Plans – Charging membership fees where payments are made for plans that allow benefits such as free and cheap delivery along with other exclusive promotional offers.
    • Advertising and Promotions: Partnering with businesses for in-app advertising and promotional tiles. 
    • Data Monetization: Using client information to offer analytical reports to advertisers and suppliers. 
    • Category Expansion: Identifying new areas other than grocery items for additional income. 

    Marketing Strategy of Zepto 

    The marketing strategy of Zepto is characterized by the themes mentioned below:

    1. Speed and Convenience 

    Zepto’s core value proposition lies in its 10 minute delivery promise, which it highlights prominently in all marketing and branding materials. Urban consumers such as Gen Z & millennials form the majority of Zepto’s customer base due to their busy life schedules and urgency to get the products, which is addressed through the 10 minute delivery model.

    Zepto uses this unique selling proposition (USP) everywhere including: online and offline ads, billboards, app store description, and social media. For advertising, the platform makes sure to offer convenience through accurate geolocation tracking, real time stock controls, micro-warehouses (dark stores), and much more. 

    2. Targeted Advertising

    Zepto utilizes targeted advertising by launching marketing campaigns on social media apps such as Instagram, YouTube, Google Ads, and OTT platforms, driven by data related to urban millennials and Gen Z viewership habits. These campaigns combine elements of advertising and influencer marketing, especially with food and lifestyle influencers popular among youthful consumers. 

    The company also makes use of geotargeting capabilities to run ads relevant to the geographical location of the user. Moreover, Zepto’s advertisements demonstrate practical situations, such as running out of milk before the afternoon tea, depicting how it can help alleviate everyday problems quickly.

    3. Referral Programs

    Zepto’s referral programs are examples of virality-driven growth tactics designed to increase market share. Users gain discounts, free deliveries, or credits in exchange for inviting new participants through these self referral programs. Its effectiveness stems from a two sided reward system where both the referrer and the referee benefit from the referral program. 

    Time-sensitive referral rewards are displayed on the app interface, which lets customers earn 25% off on the next order (max ₹200) or a total of ₹2,000 for 10 successful referrals. This approach focuses on customer acquisition, engagement, and retention simultaneously.

    4. Locally Targeted Campaigns

    Recognizing how different neighborhoods have distinct consumer behavior, Zepto designs its marketing campaigns with a hyperlocal strategy. For instance, Zepto markets and focuses on region-specific and festival-specific products during local festivities like Ganesh Chaturthi in Mumbai or Pongal in Chennai with discounts. Colloquial language is strategically placed in the marketing messages to make the impact deeper. 

    Regional preferences shape customized smartphone push notifications, vendor advertising, and city-specific regional delights, which helps in making Zepto the go-to quick commerce app.

    5. Collaborations

    Deals with popular FMCG brands, D2C start-ups, and seasonal vendors are made by Zepto for new product launches, discounts, and limited-time offers. Added variety and low pricing increases the customer base of Zepto and those brands. 

    For example, a known beverages company could exclusively launch new flavor products on Zepto with 10-minute delivery. Launching on Zepto gives the new brand instant credibility and a customer base. Claiming they are not just a delivery service, but a platform that provides exclusive access and product browse for instant delivery helps the company’s image. These sponsorships are further advertised through social media for increased exposure.

    Financial Analysis of Zepto 

    The financials of Zepto demonstrate how quickly the company is growing and the issues that come with trying to scale a quick-commerce business. Some of the key metrics related to Zepto’s valuation are listed below:

    • The total funding raised was over $1.95 billion over 10 funding rounds as of 21 April 2025. 
    • The estimated valuation is around $5 Billion in 2025. 
    • Some of the key investors include Y Combinator, Nexus Venture Partners, Glade Brook Capital, and General Catalyst. 

    A detailed financial metrics is shown below :

    Financial MetricsFY24FY23FY 22
    Operating Revenue ₹ 4,455 cr.₹ 2,026 cr.₹ 142 cr.
    Total Expense₹ 5,747 cr.₹ 3,350 cr.₹ 532 cr.
    Net loss₹ 1,249 cr.₹ 1,272 cr.₹ 390 cr.
    Loss as % of Revenue -28%-63%-275%

    SWOT Analysis of Zepto 

    SWOT Analysis of Zepto 

    Strengths

    • Ultra fast delivery: The quickest delivery in the market, Zepto’s 10 minute delivery, stands unmatched. 
    • Tech driven operations: AI and data analytics improve efficiency of inventory management and delivery. 
    • Strong brand recognition: Gaining brand recognition at a virtually unprecedented speed in urban India. 
    • High customer loyalty: Customers increasing orders and repeated purchases indicate loyalty towards the brand. 

    Weaknesses

    • High operational costs: Harboring dark stores and the complete delivery value chain is expensive. 
    • Limited Geographical outreach: Primary exposure to metropolitan cities and very few expansion in tier 1 and 2 cities. 
    • Dependence on technology: In the event of shutdowns or technology glitches in the application, products may take longer than expected to get delivered.

    Opportunities

    • Geographical expansion: Moving into Tier 2 and 3 cities to widen the customer base. 
    • Diverse product offerings: Apart from groceries, the company can add electronics, personal care products, and other products with a higher price tag to improve its profit margins. 
    • Strategic Expansion with Local Businesses: Local vendors and brands can be collaborated with to provide customers with better products and reduced logistics. 
    • International Expansion: Venturing into the spaces outside India to increase its customer base.

    Threats

    • Intense Competition: Competing with players like Blinkit, Swiggy Instamart, and BigBasket is proving to be extremely challenging. 
    • Regulatory Issues: Possible scrutiny of pricing policies as well as labor practices. 
    • Sustainability Issues: The environmental ramifications of quick deliveries and excess packaging waste. 
    • Changes in the market: Changes in customer preferences may lower the need for ultra-fast deliveries.

    Read Also: Blinkit Case Study: Business Model, Financials, and SWOT Analysis

    Challenges Faced by Zepto

    Like every other firm, Zepto has its set of challenges, from operational expenditures to competition. Here’s a snapshot of some of them: 

    1. High Operational and Logistics Costs

    • Keeping Dark Stores Operational: Maintaining dark stores is not cost effective as most of the grocery items have a low shelf life and require refrigeration facilities.
    • Staffing During High Demand Hours: Marketers, retail associates, and shelf fillers charge high salaries.
    • Rental and Other Overheads: Rental and other overheads in urban areas, such as advertising, restocking, utilities, etc. increases the overall costs.
    • Fleet Management: It is challenging to maintain a strong fleet of delivery partners as high attrition rates among freelance delivery staff is common.

    2. Low Profit Margin

    • Steep Discounts: Heavy cash rewards result in greater losses as the amount spent per customer reduces.
    • Low order value: For orders above ₹199, the customer gets free delivery even with a low order value, leading to less revenue per order.  
    • Perishable Goods: Perishable goods like bread, vegetables and meat products generally require refrigeration and are at higher risk of going unsold.

    3. Limited Reach

    • Metropolitan cities: Only operative in major metro cities like Mumbai, Delhi, Bangalore, and Chennai.
    • Limited accessibility to Tier 2 and 3 cities: These cities lack developed infrastructure, have minimal internet usage and also the consumer behaviour in these regions is different.

    4. Intense Competition

    Direct competition to Zepto includes Blinkit, Swiggy Instamart, BigBasket Now, Amazon Fresh, Reliance JioMart etc. These companies have a large customer base, established infrastructure, and significant financial resources.

    Compliance with social laws and legal frameworks poses risks due to strict controls placed on gig workers. In India, there is a rising focus on policies regarding labor benefits, compliance with wage laws and food safety laws requiring companies to operate within strict guidelines of FSSAI; these legal measures add complexity in operational processes.

    6. Environmental and Sustainability Concerns

    Excessive fuel consumption during fast deliveries leads to increased CO2 emissions. Moreover, reliance on single-use plastics and cardboards results in wastage and environmental pollution. The adoption of eco-friendly materials and changing of operational structure in order to adopt new techniques result in an increase in expenses.

    7. The Risks of Downtime and Dependency on Technology

    Order complete! Zepto’s entire model relies on inventory tracking in real-time, AI demand forecasting, and route optimization. Every system failure, data breach, or app failure will result in order delays, cancellations and reputational damages.

    8. Retaining Customers in a Discount-Centric Market 

    The user retention is accomplished primarily using coupons and discounts as customer behaviour is such that users can be easily swayed to a competing app if discounts are paused or cut.

    Read Also: Blinkit vs Zepto: Which is Better?

    Conclusion

    Zepto has emerged as a game-changer in India’s quick-commerce industry, offering unmatched 10-minute grocery deliveries through its tech-enabled dark store network. With a sharp focus on speed, convenience, and customer experience, it has built strong brand recognition among urban consumers. While it faces challenges like high costs, limited reach, and stiff competition, its innovative business model, effective marketing strategies, and strong investor backing positions it well for future expansion. Zepto holds strong potential for long-term growth in the evolving commerce landscape.

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    Frequently Asked Questions (FAQs)

    1. What is Zepto and how does it function?

      Zepto is a quick-commerce start-up that brings groceries and essentials to customers’ doorsteps in under 10 minutes. Customers place orders through the Zepto app and the nearest dark store processes the order and hands it over to a delivery partner, achieving ultra-short delivery times.

    2. How does Zepto manage to deliver groceries in just 10 minutes? 

      Ultra-fast delivery is possible for Zepto due to a combination of tech-enabled logistics, micro-warehousing, and sophisticated route planning algorithms. Zepto’s use of dark stores along with predictive systems to forecast demand, enables it to fulfill orders at record speeds.

    3. Who are Zepto’s target customers?

      Zepto target customers are urban millennials and Gen Z  that require quick delivery and convenience. Typically, these are working professionals, students, or young families residing in metropolitan areas who would want quick fixes to their grocery shopping problems.

    4. Which features are unique to Zepto as compared to grocery delivery applications like BigBasket and Swiggy Instamart?

      The 10-minute delivery guarantee is what sets Zepto apart from the rest within the online grocery space. Zepto’s speed, unparalleled user experience, and targeted advertising at specific regions puts it ahead of competitors in the quick commerce industry. 

    5. How does Zepto make money? 

      Zepto makes money through a combination of product markups, delivery fee, and brand partnerships. They buy the products at whole prices and sell them for higher than the cost. Furthermore, Zepto makes additional revenue by advertising with FMCG brands, and D2C companies through sponsored listings, featured placements, and co-branding advertising.

  • One MobiKwik Systems Case Study: Business Model, Financials & SWOT Analysis

    One MobiKwik Systems Case Study: Business Model, Financials & SWOT Analysis

    One of the most popular entities in the Indian fintech space is One MobiKwik Systems Limited or rather MobiKwik. Since its inception in 2008, the firm has grown from a provider of closed wallet facilities to offering a full suite of digital financial services products, such as loans, peer to peer lending, mutual funds, etc.

    In this blog, we will provide the case study of One Mobikwik Systems, its business model and services provided by this company. We will also provide the financial performance, and SWOT analysis of the company.

    MobiKwik Company Overview

    Bipin Preet Singh and Upasana Taku co-founded MobiKwik, which was an initially mobile wallet service that streamlined the payment process for users. The business over time has included mutual fund investing, loans, peer to peer lending and personal finance features in its product offerings. The company has been focusing on expansion due to which it launched an IPO in 2024 and raised ₹572 crores. It has its head office in Gurgaon, Haryana.

    Business Model of MobiKwik

    MobiKwik operates a fintech platform offering digital payments, digital credit (Buy Now Pay Later or BNPL), and financial services. Revenue sources include transaction fees, lending commissions, merchant services, and financial product distribution. Key offerings include MobiKwik ZIP (BNPL), Zaakpay (payment gateway), and UPI transactions. The company focuses on scaling digital credit and expanding merchant solutions to drive growth.

    Services Offered

    • Digital Wallet: Enables users to store money digitally and make payments across a wide network of merchants.
    • Buy Now, Pay Later (BNPL): Provides users with a line of credit for purchases, allowing deferred payments.
    • Insurance Products: Offers various insurance options, including life, health, and accident coverage.
    • Mutual Fund Investments: Facilitates investment in mutual funds directly through the platform.
    • Payment Gateway (Zaakpay): Provides merchants with solutions to accept payments seamlessly.

    Market Details of MobiKwik

    Current Market Price ₹272
    Market Capitalization (in ₹ Crores)2,116
    52 Week High ₹698
    52 Week Low₹261
    Book Value₹20.3
    P/E Ratio151
    (Data as of 17 March 2025)

    Financial Statements

    Income Statement

    ParticularsFY2024FY2023FY2022
    Total Income8,9035,6115,432
    Total Expenses8,5316,1706,586
    EBITDA372-559-1,154
    Net Profit141-838-1,282
    (Above mentioned figures are in ₹ million unless stated otherwise)

    Balance Sheet 

    ParticularsFY2024FY2023FY2022
    Total Non-Current Assets1,6451,6361,767
    Total Current Assets6,9015,5076,594
    Total Equity1,6261,4272,165
    Total Non-Current Liabilities54136180
    Total Current Liabilities 6,3805,3556,116
    (Above mentioned figures are in ₹ million unless stated otherwise)

    Cash Flow Statement 

    ParticularsFY2024FY2023FY2022
    Cash flow from operating activities-221270-3,206
    Cash flow from investing activities271-7-848
    Cash flow from financing activities351803,294
    (Above mentioned figures are in ₹ million unless stated otherwise)

    Read Also: Reliance Power Case Study: Business Model, Financial Statements, And SWOT Analysis

    SWOT Analysis of MobiKwik

    The SWOT analysis of One MobiKwik Systems is given below:

    Strengths

    1. Diverse Service Portfolio

    The marketing strategy of One MobiKwik Systems stands out with its wide range of offerings catering to multiple consumer and merchant needs. It offers a digital wallet for smooth payments, Buy Now Pay Later (BNPL) facilities for flexible financing, insurance solutions, and investment opportunities in mutual funds. By combining financial products and payment solutions, MobiKwik creates a holistic ecosystem that attracts diverse user groups and enhances customer retention. 

    2. Large User Base

    With more than 161 million registered users and about 4.26 million merchants, MobiKwik has a strong foothold in the Indian fintech ecosystem. A large user base, aside from generating high volumes of transactions, also gives the company a competitive advantage that allows cross-selling of its other products and services.

    Weaknesses

    1. Profitability Challenges

    MobiKwik, despite reporting substantial revenue growth, has reported operating losses for several years and recently began reporting profits. It remains to be seen if the business model is sustainable, particularly in an extremely competitive environment. The company’s profitability would need to be further strengthened with long-term financial stability through cost optimization and high-margin services.

    2. Market Competition

    MobiKwik operates in a competitive industry. It competes with key players such as Paytm, Google Pay, and PhonePe, which also provide similar products and services and have a bigger market share in specific segments. Additionally, global players with enormous financial resources could further intensify the competition, which may be a challenge for MobiKwik to continue its growth momentum.

    Opportunities

    1. Digital Payment Adoption

    India’s market for digital payments is growing rapidly with the government’s initiatives in this direction, including the Digital India program and the Unified Payments Interface (UPI). Increased penetration of smartphones and the affordability of data plans have contributed to the increased adoption of digital payments. The company can effectively leverage this trend to grow its user base, especially in semi-urban and rural areas where cashless transactions are still in their infancy.

    2. Financial Inclusion Initiatives

    One MobiKwik has a tremendous opportunity to cater to the underserved Indian population through customized microloans, low-cost insurance, and making investment in mutual funds or peer to peer lending more accessible. By fulfilling the needs of these sub-urban or rural areas, it can capitalize on a largely untapped vast market.

    Threats

    One Mobikwik operates in the Indian fintech sector due to which it must adapt quickly as new regulations emerge. Regulations related to data privacy, consumer protection, and digital lending may necessitate changes in its business model. Non-compliance or delay in getting adjusted to these regulatory compliances may attract penalty or loss of customer trust.

    Read Also: Adidas Case Study: Business Model and Pricing Strategies

    Conclusion

    One Mobikwik’s transformation from a small provider of mobile wallet into a platform that has numerous digital financial services has been exceptional and speaks of the innovation and ability of the company to adapt to changing regulations and rising competition. 

    Despite facing competition from larger fintech players, MobiKwik’s focus on BNPL services, digital lending, and financial inclusion positions it as a strong fintech contender in India’s evolving digital economy. Moreover, the company consistently pushes forward the boundaries of financial inclusion and is making valuable contributions to the fast-growing digital economy in India. 

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    Frequently Asked Questions (FAQs)

    1. What is MobiKwik’s business model?

      MobiKwik operates a fintech platform offering digital payments, BNPL (MobiKwik ZIP), and financial services. It earns revenue through transaction fees, lending commissions, merchant services, etc.

    2. How did MobiKwik perform financially in FY2024?

      MobiKwik reported total income of ₹8,903 million in FY2024, with a net profit of ₹141 million, marking a turnaround from previous losses in FY2023 and FY2022.

    3. What are MobiKwik’s key strengths?

      MobiKwik benefits from a large user base (161 million users, 4.26 million merchants) and a diverse service portfolio, including digital wallets, BNPL, insurance, mutual funds, and merchant payment solutions.

    4. What challenges does MobiKwik face?

      MobiKwik faces intense competition from Paytm, PhonePe, and Google Pay, along with regulatory challenges in digital lending, data privacy, and consumer protection laws.

    5. How is MobiKwik leveraging India’s digital payment growth?

      MobiKwik is capitalizing on India’s growing UPI adoption and financial inclusion initiatives by expanding its BNPL services, microloans, and digital financial products in underserved markets.

  • Elcid Investments – India’s Costliest Stock: From INR 3 to INR 2,36,250 – Share Price History

    Elcid Investments – India’s Costliest Stock: From INR 3 to INR 2,36,250 – Share Price History

    If you are an investor who regularly participates in the stock market, you probably might have heard of scenarios of if someone had invested INR 10,000 twenty years back in a particular stock, then the investor would have been a multi-millionaire by now. But what if we tell you that recently, a stock turned an investment of INR 10,000 into more than INR 70 crores, not gradually but overnight?

    In this blog, we will provide an overview of Elcid Investments Ltd. and explain the reasons behind the recent price increase.

    Elcid Investments Overview

    In 1981, Elcid Investments Ltd. was established and registered with the Reserve Bank of India as a non-banking financial company. The company’s main business is investing in a range of securities, including mutual funds, shares, and debentures. The business is listed on the Bombay Stock Exchange. It has two subsidiaries, Suptaswar Investment & Trading Company Ltd. and Murahar Investments & Trading Company Ltd., both of which are registered with the RBI as non-banking financial corporations. The company’s main office is located in Mumbai. 

    Due to the firm’s significant dividends and the restricted supply of shares on the market, the stock price experienced a significant upward trend in early 2020, making the company a hidden gem for investors. The company’s promoters have made attempts to delist or repurchase shares at a base price of INR 1,61,203, but they were unsuccessful since they did not have public shareholder’s approval. 

    Latest News About Elcid Investments

    When Elcid Investments’ share price surpassed that of MRF Limited, it became the most expensive stock on the Indian equity market and made headlines. The share’s price has jumped over 75,000 times overnight, which made the stock a topic of discussion among investors. The company was last traded on 21 June 2024 and closed at INR 3.55. The next time it was traded was on 29 October 2024, and the stock price closed at INR 2,36,250. 

    Elcid– Penny Stock to Most Expensive Stock

    The story began when SEBI published a circular in June mentioning the use of a price mechanism called the Special Call Auction of Investment Holding Companies and Investment Companies to determine the companies’ fair prices. This circular aimed to lessen the price gap between holding companies’ book values and current market prices. There won’t be price bands in this auction.

    The company consistently pays large dividends to its owners, which attracts investors. Since the company paid out a dividend of INR 25 in August 2024 despite its share price being only INR 3, no investor was prepared to sell their holdings. 

    Back in 2013, when the share’s current market price was below 2.73 INR, the company’s promoters chose to delist the security and offered an alluring price of INR 11,455. However, according to SEBI laws, 90% of the public shareholders must approve of the offer to delist, and in this instance, the shareholders rejected it. The company recently made a delisting offer of INR 1,61,203 per share, but the investors also rejected this offer. 

    The company owns approximately 2.83% stake in Asian Paints, which is valued at 8,500 crores. The stock is still trading at a 45% discount to its intrinsic value of INR 4.25 lakh per share based on its position in Asian Paints. 

    Did You Know – Other than Elcid Investments Limited, only 30 stocks in India have share prices above INR 10,000. These businesses include MRF, Page Industries, Honeywell Automation India, and Shree Cement. 

    Market Details of Elcid Investments Ltd.

    Current Market PriceINR 2,36,250
    Market Capitalization (In INR Crores)4,725
    Book ValueINR 5,84,225
    52 Week HighINR 2,36,250
    52 Week LowINR 3.37
    Face Value of ShareINR 10
    P/E Ratio (x)22.1
    (Above data as of 30 October 2024)

    Read Also: Case Study of Petrol & Diesel Price History in India

    Financial Statements of Elcid Investments

    Income Statement

    ParticularsMarch 2024March 2023March 2022
    Total Income235108134
    Total Expenditure463
    EBIT231101131
    Net Profit 17573100
    (The figures mentioned above are in INR crores unless mentioned otherwise)
    Income Statement of Elcid Investments

    Balance Sheet

    ParticularsMarch 2024March 2023March 2022
    Non-Current Assets11,69511,19112,342
    Current Assets95.7173.2021.47
    Non-Current Liabilities786744835
    Current Liabilities10671.7634.94
    Total Shareholder Funds11,68511,19212,329
    (The figures mentioned above are in INR crores unless mentioned otherwise)
    Balance Sheet of Elcid Investments

    Cash Flow Statement

    ParticularsMarch 2024March 2023March 2022
    Cash Flow from Operating activities773761
    Cash Flow from Investing activities-87-27-68
    Cash Flow from Financing activities000
    (The figures mentioned above are in INR crores unless mentioned otherwise)
    Cash Flow Statement of Elcid Investments

    Key Performance Indicators (KPIs)

    ParticularsMarch 2024March 2023March 2022
    Operating Profit Margin (%)98.4393.6897.24
    Net Profit Margin (%)74.6967.4374.22
    Return on Net Worth/Equity (%)1.50.650.81
    ROCE (%)1.850.850.99
    Return on Asset (%)1.400.610.75

    Read Also: Hyundai Motor India Case Study: Business Model, Financial Statements, And SWOT Analysis

    Conclusion

    Elcid Investments has experienced exponential growth in recent years because it owns a 2.83% stake in Asian Paints. However, because of the market’s limited liquidity, the share prices do not reflect the company’s fair value. As a result, even after the call auction, the company is still trading below its fair value. Investors may find it challenging to buy this stock because of its low liquidity. However, investors must consult their investment advisor before making any investment.

    Frequently Asked Questions (FAQs)

    1. Where is the headquarters of Elcid Investment Limited?

      The headquarters of Elcid Investment Limited is situated in Mumbai.

    2. What caused the increase in the share price of Elcid Investments?

      The BSE’s unique call auction mechanism, which enables firms to find a reasonable price without a price band, caused the share price of Elcid Investment Ltd. to soar on 29 October 2024.  

    3. Why does Elcid Investment Ltd. share have low liquidity?

      The company’s share price has low liquidity as it declares high dividends and trades below its fair value, which is why investors are not willing to sell their holdings.

    4. Is Elcid Investment the costliest stock in India?

      Elcid Investment Ltd.’s share price is valued at INR 2,36,250, making it the costliest stock in India as of 29 October 2024.

    5. Who are the major investors in Elcid Investment Ltd.?

      The promoters of Asian Paints hold around 75% stakes in Elcid Investments Limited, and other shareholders, such as Hydra Trading Pvt. Ltd., hold around 9.04% stake.

  • Case Study of Petrol & Diesel Price History in India

    Case Study of Petrol & Diesel Price History in India

    Petrol and diesel are essential for every sector in India as they are considered the backbone of transportation, agricultural, and manufacturing sectors. Over the years, fuel prices in India have changed due to internal factors and international market forces. The price of crude oil, taxation policies, government intervention, and the demand and supply have determined the pattern for the price of petrol and diesel. Understanding these trends is crucial for consumers and businesses.

    Rising costs of petrol and diesel affect not only the ordinary commuter but also the economy as a whole. The transportation cost, due to the hike in the price of fuel, is reflected in the price of goods and services. In fact, with online trading platforms in place, people are now investing in oil-related stocks in India, making it crucial for investors to be informed of these dynamic price changes in fuel prices.

    This blog contains a case study of how petrol and diesel prices are determined, their historical trends, the gap between the prices of the two fuels, the consequences of rising prices and the future outlook in India.

    How are Petrol and Diesel Prices Determined in India?

    Pricing petrol and diesel is a complex task as it is influenced by various factors. This is important to consumers as well as to businesses because corporations pass on these rises in costs to their consumers. Here are the main factors that determine petrol and diesel prices in India:

    • Global Crude Oil Prices: The global crude oil market price is the most influential factor in determining the fuel prices in India. As India imports 85% of its crude oil, any fluctuation in the international market prices decreases or increases the fuel prices in India. 
    • Exchange Rate: Another equally important factor has been the exchange rate, particularly INR against USD. Since the dollar is used to buy crude, a weakening rupee increases the import cost of crude, which further pushes up the fuel price. 
    • Taxes and duties: Central as well as state governments impose excise duty and value-added tax respectively, on petrol and diesel. Taxes form a majority of the retail price of petrol, at times making it more than half the cost to the consumer. This is one of the primary reasons why petrol prices have increased radically in recent times. 
    • Cost of Refining: Refining crude oil into usable petrol and diesel requires infrastructure and labor, which the refineries and dealers pass on to consumers. Some refineries reduce costs because of advanced technology, but any additional maintenance costs or accidents can shoot the fuel prices up in a short time span.
    • Transportation and Distribution Costs: Fuel supplied from the refineries to retail outlets in India, especially from remote areas, contributes to the overall cost. Such variations in logistics costs also account for differing regional prices. 
    • Petrol-Diesel Dynamics: The domestic consumption of petrol and diesel has the highest impact on their prices. Diesel is utilized mainly by tractors and trucks, making it the backbone of agriculture and transport. Peak agricultural seasons always result in high diesel prices. Furthermore, fast urbanization and rising incomes in India have resulted in high ownership of vehicles and, therefore, a rise in the demand for petrol.
    • Government Subsidies and Policies: Petrol and diesel prices in India remained heavily subsidized over time to control inflation. However, this policy was scrapped in 2010, when the petrol prices were linked to global crude prices and in 2014 when diesel prices were aligned to international markets just like with petrol, which ensures that its local price differential is much more sensitive to oil price movements around the world. This has led to relatively high price volatility in domestic markets.

    All these factors together affect the petrol and diesel prices. The government keeps a close eye on it, adjusts the taxes or introduces subsidies when the market requires it.

    Petrol & Diesel Price History in India

    The history of petrol and diesel prices in India has been very volatile in nature. The prices have escalated sharply over the last two decades because of steep increases in global crude oil prices, taxes, and other factors. The following is a comprehensive account of petrol and diesel price history in India.

    Petrol Price History in India

    Year  Price (Rs/Litre) Notes
    Early 2000s ₹30 – ₹40 Prices stabilized because of global market trends and government regulation
    2008₹50  The crude oil price increased this year on account of the global financial crisis.
    2010₹55 Prices surged high due to increased demand and tight supply in international markets.
    2014 ₹76The Government deregulated the prices of petrol, which caused the prices of petrol to rise.
    2016  ₹65Petrol lowered slightly because of the fall in the price of global crude oil.
    2018 ₹76Prices increase with an increase in crude oil prices and tax.
    2020₹81.06The fuel prices increased due to pandemic 
    2021₹97In some states, due to increased taxes, prices for the first time touched a record of ₹105 per liter.
    2024₹95.71It shot up to all-time highs in some cities due to high international crude prices and additional local taxes.

    The data above shows how the petrol price has continually increased in the past years. The early 2000s range was almost stable when the price experienced minimal fluctuation between ₹30 and ₹40 per liter. However, due to the global financial crisis in 2008, crude oil increased, causing petrol to rise to ₹50 per liter. The trend continued in the following years because of high demand and geopolitics.

    In 2010, the Indian government initiated the process of deregulation of petrol, opening up the scope for refiners to alter their prices for petrol according to the market situation. From then onward, the Indian petrol price showed a more scenario-based trend. Prices continued to surge and reached ₹76 in 2014.

    The COVID-19 pandemic in 2020 created disruptions in the global oil supply chain but experienced temporary price fluctuations. However, by 2021, petrol prices crossed the ₹100 mark in various states. In 2024, petrol prices range from ₹82 in Andaman & Nicobar Islands to ₹108 in Andhra Pradesh.

    Diesel Price History in India

    Diesel was not so expensive as compared to petrol as diesel was subsidized by the government because it played a major role in the agricultural and manufacturing sector. However, it has increased significantly in recent years due to the removal of subsidies and deregulation of diesel prices.

    YearPrice (Rs/Litre)Notes
    Early 2000s₹20 – ₹30Less because of the subsidies and government regulation.
    2008₹35Diesel prices increased in response to the global financial crisis.
    2014₹55Prices increased due to the withdrawal of subsidies
    2018₹74Increased drastically due to the increase in crude oil prices and taxation.
    2020₹80The diesel prices were highly volatile during the pandemic
    2024₹88Diesel rates continued to rise, and the gap between petrol and diesel prices was reduced.

    The history of diesel prices mirrors the trend shown by the petrol prices. Once diesel prices were much lower than that of petrol for many years due to government subsidies. The diesel price, in the early 2000s, was regulated and sustained around ₹20 to ₹25 per liter.  Due to the global financial crisis, it went up to ₹35 per liter in 2008. Subsequent removal of subsidies caused diesel prices to follow the global market.

    In 2014, the deregulation of diesel prices caused the prices to move to ₹55 per liter. Diesel prices rose to ₹74.34 per liter by 2018, thereby reflecting the rise in global crude prices and taxation.

    The diesel prices had managed to remain on the higher side of the market due to the persistent demands, especially in the agricultural sector. In 2024, the prices of diesel are nearly bridging the gap with that of petrol in many areas.

    Read Also: Indian Oil Case Study: SWOT Analysis and Marketing Strategy

    Petrol and Diesel Prices Difference in India

    Understanding the difference between petrol and diesel prices helps consumers, investors, and policymakers. Here’s a graph that shows the difference between the price of petrol and diesel in various Indian metro cities over the years.

    CityYearPrice of Diesel (Rs/Litre)Price of Petrol (Rs/Litre)Differences in Price (Rs/Litre)
    ChennaiJanuary 2016₹46.25₹59.77₹13.52
    October 2024₹94.24₹100.75₹6.51
    MumbaiJanuary 2016₹52.16₹66.4₹14.24
    October 2024₹89.97₹103.44₹13.47
    KolkataJanuary 2016₹48.80₹65.12₹16.32
    October 2024₹91.76₹104.95₹13.19
    New DelhiJanuary 2016₹46.09₹59.35₹13.26
    October 2024₹87.62₹94.72₹7.10

    Analysis of Price Differences

    From the above tables, the trend we see is:

    • Price Gap Reduced: The price gap between petrol and diesel has reduced significantly in Chennai and Delhi between January 2016 and October 2024. This indicates that the government’s policies to deregulate diesel prices have caused the price difference between diesel and petrol to decrease.
    • Geographical Differences: State-specific taxes and logistics costs affect prices. For instance, in Mumbai, the price difference has not changed much over the years, whereas in cities like New Delhi, the gap has halved over the years.
    • Market Dynamics: The market dynamics of supply and demand, coupled with the international crude oil prices, directly influence the price differences. The escalation in global oil prices affects both fuels; however, taxation policies by the government and market forces create a price differential between petrol and diesel.

    Understanding the Consequences of Increasing Fuel Prices

    The rising oil prices is a cause of concern for the economy as India imports 85% of its crude oil. Some of the most apparent impacts are as follows:

    • Inflation: The rise in fuel prices increases transportation costs, which further contributes to the rising inflation. This increases the price of transporting goods, such as food, clothing, etc., leading to high prices for consumers.
    • Automotive Industry Impact: The fuel-intensive sectors of logistics and transport industries grow increasingly less financially viable with increasing costs of operations. Such increases are likely to be passed onto the consumer in the form of increased fares of public transport and freight costs.
    • Agricultural Impacts: Diesel prices influence prices of agricultural products as it is used as a fuel for tractors and trucks. Increased diesel prices push up the cost of production for the farmer, which is passed on to the consumer in the form of increased food prices.
    • Consumer Spending: Fuel price hikes definitely reduce consumers’ disposable income, so they have to spend a greater percentage of their money on fuel. The savings money spent by them might indirectly influence several sectors of the economy through reduced expenditure on discretionary goods.
    • Alternative Fuel: Rising petrol and diesel prices may lead to a shift to alternative sources, such as solar energy, wind energy, etc. Increasing fuel prices will naturally see customers look for a cheaper mode of transportation.
    • Political Implications: When fuel becomes too expensive, the government comes under political pressure due to protests and demand for a subsidy, thereby affecting policy changes.

    Future Outlook for Petrol & Diesel Prices in India

    The future outlook for Petrol & Diesel prices in India will be influenced by the following factors:

    • Global Oil Market: The global supply and demand change continuously, and fuel prices are bound to fluctuate.
    • Government Policies: The change in taxation policies may raise or lower fuel prices.
    • Electric Vehicles: EVs might become more popular and lead to reduced consumption of fossil fuels.
    • Environmental Regulations: If stringent rules come in place, it would increase costs, hence affecting fuel prices.
    • Geopolitical Issues: Any political instability in the oil-producing regions may immediately hike fuel prices.
    • Technological Advance: Alternative fuels might replace petrol and diesel.

    Read Also: BPCL Case Study: Business Model, Product Portfolio and SWOT Analysis

    Conclusion

    The diesel and petrol prices history in India explains the trends followed by the fuel prices in India and the impact of domestic policies on them. The decision by the Indian government to deregulate petrol and diesel has caused fuel prices to increase over the years. Until India completely adopts cleaner energy and EVs, petrol and diesel price changes will depend on global crude prices.

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    Frequently Asked Questions (FAQs)

    1. Why do the prices of petrol and diesel in India fluctuate?

      Petrol and diesel prices are affected by factors such as crude oil prices, exchange rates, taxes levied, and dynamics of supply and demand in an economy.

    2. How does the government affect fuel prices in India?

      The government affects fuel prices through tax, duty, and subsidy. The domestic price changes are much in line with changing global market prices since deregulation.

    3. What led to steep increases in petrol and diesel prices in recent years?

      Reasons for current price increases include increasing international crude oil prices, removal of subsidies, heavy taxes, and post-pandemic market volatility.

    4. Why are the prices of petrol and diesel different from each other?

      Traditionally, diesel has been sold at cheaper prices due to government subsidies and regulatory control, though lately, the difference has been reduced.

    5. What would be the outlook for petrol and diesel prices in India?

      Prices will vary with trends in global crude oil prices, government policies, and shifts toward alternative fuels like electric vehicles.

  • Hyundai Motor India Case Study: Business Model, Financial Statements, And SWOT Analysis

    Hyundai Motor India Case Study: Business Model, Financial Statements, And SWOT Analysis

    Hyundai stands for innovation and reliability and is steering the future of mobility in India. Hyundai has a large market share due to its focus on innovation, cost-effectiveness, safety, comfort, and sustainable mobility. Hyundai is one of the largest automobile manufacturers in the world and has been listed on the South Korean stock exchange, but did you know that its Indian subsidiary recently launched an IPO, which is India’s biggest IPO to date?

    In this blog, we will discuss Hyundai Motor India, the Indian subsidiary of Hyundai. We will give you an overview, business model, and financial data and do a SWOT analysis of the company.

    Hyundai Motor India Company Overview

    Hyundai Motor India Ltd., a part of the Hyundai Motor Group, was incorporated in 1996. Hyundai is the third largest auto equipment manufacturer in the world and has established itself as one of the world’s leading automakers. The company offers a diverse portfolio of sedans, SUVs, electric vehicles (EVs), and hydrogen fuel cell vehicles.

    Hyundai has a robust global presence, with production facilities in many countries and a wide distribution network. The company commits to innovation, which is evident in its development of hydrogen fuel vehicles and autonomous driving technology.

     Business Model and Strategy of Hyundai Motor

    Hyundai’s business model revolves around a customer-centric approach backed by global expansion, innovation, localization, and technological advancements. Hyundai is committed to sustainability, positioning it as a leader in the global automobile market. Let us understand Hyundai’s business model in more detail:

    1. Global operations and sales: Hyundai has manufacturing plants all across the globe and sells a wide range of vehicles. Hyundai’s diversified product range features affordable cars, fuel-efficient cars, electric vehicles (EVs), autonomous cars, plug-in hybrid vehicles, and hydrogen-powered cars, catering to various consumer segments and markets.

    2. Globalization and Localization: Hyundai operates in more than 200 countries worldwide and has manufacturing capacities in major key markets. Hyundai also has plants in India, helping it source a major portion of its components locally and cater to the demand for affordable vehicles.

    3. Technology and Innovation: Hyundai invests heavily in research and development to maintain its position as a major market player. The company aims to develop eco-friendly electric vehicles, autonomous driving and hydrogen fuel cell technology to align with the government’s push for green mobility.

    4. Sustainability: Hyundai is making efforts to remain environmentally friendly through its innovative product offerings. It is committed to sustainability and has set targets to achieve carbon neutrality by 2045, reducing emissions and carbon footprint.

    5. Financial Services: Hyundai provides a range of financial services, including leasing and financing options, through its subsidiaries. This service helps attract customers by offering flexible purchasing options, hence contributing to its overall revenue.

    6. After-Sales Service and Customer Focus: Hyundai gives importance to customer satisfaction through its extensive after-sales service network, including warranty packages, vehicle maintenance, and repair services. It also focuses on delivering a smooth digital experience, offering apps and online platforms to enhance customer engagement.

    7. Strategic Partnerships and Acquisitions: Hyundai has formed strategic alliances and partnerships with technology companies, governments, and other manufacturers to drive innovation in autonomous driving, mobility solutions, and hydrogen fuel cell infrastructure. This approach enables Hyundai to remain competitive in a rapidly evolving industry.

     Financial Data of Hyundai Motor

    Income Statement

    ParticularsFY 2024FY 2023FY 2022
    Total Income71,302.3361,436.6447,966.05
    Total Expenses63,062.4555,091.0744,193.84
    Profit Before Tax8,239.876,345.583,772.21
    Net Profit6,060.044,709.252,901.59
    (The figures mentioned above are in INR crores unless mentioned otherwise)

    Balance Sheet

    ParticularsFY 2024FY 2023FY 2022
    Total Non-Current Assets10,225.209,211.378,278.22
    Total Current Assets16,124.0425,361.9720,079.84
    Total Non-Current Liabilities2,686.402,513.012,309.57
    Total Current Liabilities12,997.1912,005.529,192.24
    Total Equity10,665.6620,054.8216,856.26
    (The figures mentioned above are in INR crores unless mentioned otherwise)
    Balance Sheet of Hyundai Motor India

    Cash Flow Statement

    ParticularsFY 2024FY 2023FY 2022
    Cash Flow from Operating Activities9,251.966,564.265,138.41
    Cash Flow from Investing Activities-10,090.47-1,411.62-905.29
    Cash Flow from Financing Activities-15,930.07-1,579.23-1,662.04
    (The figures mentioned above are in INR crores unless mentioned otherwise)
    Cash Flow Statement of Hyundai Motor India

    Key Performance Indicators

    ParticularsFY 2024FY 2023FY 2022
    EBITDA Margin (in %)13.0812.5211.58
    EBIT Margin (in %)9.928.897
    ROCE (in %)62.928.7520.37

    Read Also: Vedanta Case Study: Business Model, Financial Statement, SWOT Analysis

    SWOT Analysis of Hyundai Motor India

    Strengths

    1. Hyundai has a strong global presence and brand recognition. It is one of the leading automotive companies with a significant market share.
    2. It is a leader in technological innovation, especially in EV and hydrogen fuel cell technology.
    3. It is a key player in the automobile industry with a product portfolio including SUVs, hybrids, EVs, and fuel-cell cars. The diversified product portfolio helps diversify risks from fluctuations in specific market segments.
    4. It has operations across the globe, with production facilities in countries like South Korea, India, China, and the U.S., allowing for cost efficiency, economies of scale, and the ability to serve local markets effectively.
    5. It manufactures environment-friendly vehicles.

     Weaknesses

    1. The company’s sales depend on key markets like China, Korea and the US. Any regulatory change will affect the overall sales of the company.
    2. The company fails to compete in the luxury segment with established players like Audi, BMW and Mercedes-Benz.
    3. The company has faced issues in the past related to vehicle’s lower build quality and reliability.

    Opportunities

    1. Expansion in developing markets will help the company increase its sales.
    2. The company can become the market leader in the EV segment by catering to the growing demand for sustainable mobility solutions.
    3. It has formed several partnerships with other firms to build autonomous cars and innovate with AI and machine learning.
    4. Hyundai is exploring ways to reduce its environmental impact by adopting sustainable practices such as energy-efficient technologies and hydrogen fuel cells.

    Threats

    1. The global automotive industry is highly competitive, with strong players like Toyota, Volkswagen, and Tesla in the EV space. Hyundai faces constant pressure to innovate and stay cost-competitive.
    2. The automotive industry is highly regulated and is subject to strict regulations related to pricing, emissions standards, and tariffs.
    3. Supply chain disruptions, particularly for semiconductor chips, have affected automobile production in the past. Any further disruptions could lead to production delays, increased costs, or inventory shortages.
    4. Managing operational costs while maintaining high-quality products remains a constant challenge as the industry is capital-intensive and requires regular investments.
    5. The economic slowdown could lead to reduced consumer spending on automobiles, and inflation and political instability could further impact profitability.

    Read Also: TCS Case Study: Business Model, Financial Statement, SWOT Analysis

    Conclusion

    Hyundai Motor India’s financial health, strong brand presence, and growth prospects make it a promising candidate for an IPO. The company is well-positioned to benefit from positive trends in the automobile space, such as rising demand for SUVs, increasing export percentages, and the adoption of EVs in India.

    Hyundai Motor India has a history of stable operations and a competitive advantage in innovation & technology, due to which the company has the potential for long-term growth. However, there are challenges related to competition and regulatory changes which could affect its financial performance. It is advised to consult a financial advisor before investing.

    Frequently Asked Questions (FAQs)

    1. What was the IPO size in India of Hyundai Motors?

      The IPO is worth ₹27,870 crores, making it the biggest in India’s history.

    2. What are the Key Risks in the valuation of Hyundai Motors?

      The company has been unable to increase its market share for some time and has been facing stiff competition from Tata Motors, M&M, etc.

    3. How will the company use the IPO proceeds?

      The IPO proceeds will go to the promoters selling their shares.

    4. What would be the benefits of investing in Hyundai Motor India?

      Hyundai Motor India’s brand reputation, future growth and expansion plans make it a good investment opportunity. However, investors must consult a financial advisor before investing.

    5. Hyundai was established in which country?

      Hyundai is a South Korean automobile manufacturer and was established in 1967.

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