How Business Sense can increase Profits!

Business Management allows us to develop a broad understanding of business organization with specific knowledge of markets, customers, finance, operations, communications, information technology, business policy & strategy.

Better the Business Sense, greater will be the enthusiasm and promptness in understanding and dealing with a “business situation” for impressive results.

Let’s see the representation of our Union Road Transport Minister, who has proven himself to be a minister with a great business sense. 

1) At the outset of 2019, Road Transport and Highways Minister told times that JNPT’s (Jawaharlal Nehru Port Trust) Commissioner took a loan of 3000 crore at 11% from ICICI Bank and he advised him to take a loan in dollars at low-interest rate, if the turnover is in dollars, in that case, loan can be returned back in dollars. On circulating tender, SBI Capital and DBS Singapore came up with a proposal of charging 2% interest rate (no hedging required since the money can be returned in dollars). Hence, savings of 9% less interest rate was achieved.

2) He said I am making a Railway line from Manmad to Indore, Railways said that we don’t have money then he insisted them to permit him to make it. Railways made a proposal of 8000 crore and on further moderations, the proposal was squeezed to 6000 crore. In turn of money contribution, where he said 10% government will give, 20% JNPT will contribute, immediately state government backed out saying we don’t have money. Then he said, Okay I will get the money earned and will make 6000 crore Railway line, whose GST earned will be submitted to the government that will be government’s profit. Only the government land given for the project should be given free of cost and was Okayed with consensus, at this point the smart ways & means were adopted to have a more economically viable option.

3) India’s first green and smart 135 km Eastern Peripheral Expressway (EPE) was inaugurated in May 2018 – built at a cost of Rs 11,000 crore (in a record time of 500 days) and lit by solar power besides provisions of rainwater harvesting, auto challan system and intelligent highway traffic management system. 

Stated one more fact that daily 47000 containers are transported from Dewas and Indore to JNPT.  On the other side, traffic departing on the route from Ahmedabad to Mumbai gets stuck for eight – eight days. Now due to the approval of this new railway line, these routes can be used without any hurdle. Furthermore undeveloped, backward, tribal areas will also get developed due to the construction of new railways project along with faster commuting, transportation, and logistics.    

4) Also specifically quoted about some of the intelligent people in the system who proposed to plan an expressway from Delhi to Mumbai with a costing of 70000 crore. So one very intelligent IIT engineer who works with him, gave an extremely good suggestion as a way out, saying that sir we are already making Delhi to Jaipur expressway, the route prepared is also going from undeveloped area, Rajasthan ring road which was stuck from last 3 years is also solved and will be in action within one year. As a result Ring road route from Alwar to Sawai Madhopur, Sawai Madhopur to Vadodara will be used and linked to 44000 crore Vadodara to Mumbai expressway, so the new alignment will be from Ring Road of Delhi to Jaipur to Alwar from where it will reach Sawai Madhopur to Mumbai via Vadodara.

Hence, Eight or ten lane – big expressway will be a great resolution. The economic advantage in the whole proposal is that, if in case we would have routed through developed area, the land acquisition cost would have been 7 crore per hectare but now we have routed via Backward, tribal, undeveloped area where the land acquisition cost is 60 lakh per hectare, additionally, the undeveloped area will also get developed. 

To Sum up:

1. Land acquisition cost for new Delhi-Mumbai expressway lowered by Rs 20k crore.
2. Travel time will be reduced to only 10 hours from Delhi to Mumbai.
3. Eight or ten big lane expressway will be constructed in less money with more viability.

In Nutshell, if everybody thinks innovatively in his or her areas, business, work to solve these small or big problems and prepare money proposals accordingly, we end up achieving success always. Because resources are always going to be scarce or short but if we handle them innovatively, with business sense, we are never ever going to face any problems and will be benefitted always. To understand the innovative online business one can go through dropshipping as well.

Business Sense is still Significant

5) Last but not the least; he said to consider Import substitute cost-effective and pollution free aspects too, explained below:

a) He requested everybody to do one thing, in our country we import worth of 7 lakh crore of petroleum products, which can be prepared by our country’s farmers. Rice Straw burning is the reason for the pollution in Delhi and now we are able to convince our petroleum minister too for not investing 70k crore rupees in putting up a refinery instead try to prepare our country’s farmers for producing it.

[1st generation bioethanol production involves the use of molasses as a substrate for bioethanol production; while the use of cellulosic materials like wheat straw, cotton straw, bagasse for the production of bioethanol is called 2nd generation bioethanol production; and 3^rd generation bioethanol production involves the use of Corn as a substrate for bioethanol production].

b) So the key area of focus will continue to be running vehicles on alternative fuel and electricity to cut down on India’s huge crude imports. He said bio-fuel and electricity are important cost-effective substitutes and a fleet of 1,000 electric buses is on the anvil in Maharashtra alone.

Government of India has now proposed the policy and introduced in the cabinet for another revolution because the face of Indian farmers can’t be changed now by continuously growing wheat & rice only. And it’s a proven fact that 280 liters of ethanol is being prepared from One Ton of Rice straw. The other day when Nitish Kumar Ji came to his house, that day Bajaj had also sent one Biofuel Bike, one Biofuel Auto rickshaw, one electric Auto for the trials and you will be surprised to know that Bike & Auto rickshaw runs on 100% BioEthanol, moreover in his town 55 AC Buses are also running on biofuel which is called as Green Buses. Wherein, alternate fuel has been prepared by farmers only.

c) Moreover, in countries like America, Canada, Brazil have also the same Toyota, Ford, Honda, BMW car brands with alternate fuel Engines which runs successfully either on 100% bioethanol or 100% gasoline. Therefore farmers producing biofuel will bring the complete revolution and will change the condition of our villages for the betterment. Due to this we can attract 5 lakh crore investments and can also create 50 lakh jobs for our Indian youth. Even 2 lakh crore of reductions in petroleum products – import can turnaround our Rural and Agricultural Economy because saved money will come to farmers to generate the alternate biofuel.

Petrol costs Rs 80 per liter; Diesel costs Rs 60 per liter; Ethanol costs Rs 42 per liter (High Calorific Value Ethanol will cost Rs 47 per liter); and if the same vehicle run on electricity of that equivalent power then cost will come out to be Rs 10 only.

Then why we all are making so much pollution? Why importing?  So let’s put in order in our country indigenously and should accelerate & speed up the process of mutually beneficial correlation amongst ourselves with a great business sense.