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Archive for November, 2017

12 year lock-in? Is IRDA really this weird?

Posted by fairval on November 6, 2017

IRDA seems to live in its own world. It seems it is considering putting a 12 year lockin for PE investments in insurance space.

Irda may ask PE companies for 12-year lock-in

Some of the statements in this article (it quotes an unnamed IRDA official) are truly bizarre.
Check this —

  • Private equity is one of the most unstable form of capital looking for appreciation and exit, so a lock-in period is required. I thought it was one of the most stable.
  • This is to ensure that their capital is invested for a longer tenure to support the long-term growth of insurance companies and safeguard policyholders’ interest as these funds are known to look for quick appreciation and exit. And how does one exit: There has to be a buyer, right? If the buyer is willing to pay a certain price, is IRDA saying the next buyer is a fool? IRDA needs to protect the next buyer from getting duped by the PE fund? 

One can understand say a 5 year lockin. 12 year pre-determined lockin – IRDA is living in another world.

The stated reason is of course to protect the ‘policyholder’. Wish they would show more concern about reducing commissions and insidious sales practices.

 

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Posted in BFSI, What was that Again? | Tagged: | Leave a Comment »

Size of Indian Dentistry

Posted by fairval on November 5, 2017

India Business Reports released a report on Indian dental market. This pegs the size of Indian dental clinic revenues at around Rs 20,000 crore, or USD 3.1B. This is higher than other estimates floating around, which IBR believes have under-estimated the size of the market.

 

It has been consistently reported that there is a massive oversupply of dentists in India. While this is certainly true at this time, IBR believes these concerns are overdone; this is a temporary phase. India can add almost 25,000 dentists per year till 2050 without reaching levels of penetration of dentistry in already seen in developed countries.

 

Dental health in India has a long way to go. However, no effort is being made either by the government or by dental associations to promote awareness. A concerted program of dental awareness would help promote healthy growth of dentistry.

More info on http://www.indiabusinessreports.com

Posted in Pharma and Lifesciences | Tagged: , , | Leave a Comment »

Spurious RTI data – 40% vacancy in Mum-Ahd trains

Posted by fairval on November 1, 2017

Today one amazing bit of data has come out, it seems out of an RTI query. Says a news item –

Modi government obviously did not do its homework on the Rs 1 lakh crore project.

According to an RTI query filed by Mumbai activist Anil Galgali on seat occupancy, in the past one quarter alone, the Western Railway is facing staggering losses worth Rs 30 crore in the Mumbai-Ahmedabad sector – this translates to a loss of around Rs 10 crore per month. The WR revealed that in the past three months, 40 percent seats have been vacant on the Mumbai-Ahmedabad route while 44 per cent seats were left unoccupied in the Ahmedabad-Mumbai route.

This was widely reported in all papers, and was today being debated on NDTV. As can be expected, the slant was – So how can a bullet train come on this route?

Amazed at the stupidity of it all – this data is SO OBVIOUSLY incorrect. It appears no one in the media or their expert commentators travel in Indian trains anymore. 40% vacancy? What are they smoking?

I travel on this route often, and I know from personal experience, it is very hard to get tickets if not booked in advance. If this data was correct, I should be able to book a ticket say 4 hours in advance.

So I checked just now. According to the RTI data, there are 32 trains (IRCTC lists 30); of which, quite a few are only for this route (as in, Ahmedabad is the last stop). Some of these –

  • Shatabdi Express
  • Ahmedabad Passenger (twice a day)
  • Suryanagari Express
  • Karnavati Express
  • ADI Double decker
  • Ahmedabad Duronto

Total seats as per RTI data are around 8000 per day

I checked availability for tomorrow. Only ONE out of 30 trains has any tickets. Many are not even accepting booking for Waiting List ticket. The only train which has tickets – 179 – is ADI Double Decker. This again I have noticed from personal experience. This does have tickets often till the last moment. Why so? I guess 2 reasons – it has lot of tickets to offer, being a double decker – one bogie has ~140 tickets, this single train must have 2000 tickets to offer; also the seats are extremely uncomfortable, so maybe people don’t like this train.

But then, 179 out of 8000; that’s 2%. And this is not season. In Diwali season, there was no tickets for atleast a 20 day period. For tomorrow (2nd November), even the twice a day Ahmedabad Passenger has no tickets. And it takes 15 hours 45 minutes, a lifetime!! In contrast, fast trains like Shatabdi or Duronto take 6 hours 20 minutes.

So where the hell does the 40% vacancy come from? And in which Indian train sector is that even possible? Let alone Mumbai Ahmedabad.

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