http://mt-iwa.blogspot.in/2013/10/all-fo...-owen.html
Selvamani
Robert Owen (1771–1858) is the founder of co-operative society and it was first introduced in England.
INTRODUCTION: The death of my colleague Mr. Pramodh, Quality Controller, has made me realize the kind of insecurity the employees of MT Industry exposed to and I wrote a write-up to MT India mourning his death and explaining the plight of MT fraternity in general due to lack of proper health insurance and life insurance coverage. What started as a journey towards expression of condolence to the bereaved family had paved the way for having a discussion about having insurance to all our members. I expressed my views about formation of society and Varun has informed that since members are interested in Retirement plan first, we could ahead with that initially and then go ahead with formation of society later.
DISCUSSION ABOUT INSURANCE: We and Mr. Varun discussed with insurance agents across India to have a tailor-made life insurance policy for all members. We were disappointed with the response of the insurance companies as none of them responded positively to our request for quote. The reason, when we asked the insurance companies, for not responding to our request for quote, has been lack of proper membership data from our side. Hence, we decided to make membership mandatory and the form for this effect would be displayed in our blog soon.
INDEX
I. FORMATION OF CO-OPERATIVE SOCIETY
II. CAPITAL
III. REVENUE GENERATION SCHEMES
IV. WELFARE SCHEMES
FORMATION OF CO-OPERATIVE SOCIETY
MEMBERSHIP: We require complete details of the members willing to join our proposed co-operative society and online form will be posted to this effect in our MT India Facebook page. All members are requested to fill out that online form.
CO-OPERATIVE SOCIETY: Co-operative society’s concept is “All for one and one for all”. There are so many co-operative societies functioning successfully throughout the world. The success of co-operative societies after 30 years since inception is around 50%, which is the highest in any form of organization. The best examples are as follows:
Kaira District Co-operative Milk Producers' Union Limited was the First Co-operative Milk Producers' Union in Gujarat. Founded by Vargheese Kurien, the milkman of India who never drinks milk is the astonishing fact. Brand name is Amul. Tamil Nadu State Co-op Milk Producers’ Federation Ltd. -
http://www.aavinmilk.com/.
TYPE OF SOCIETY: Initially, we thought of going in for a multi-state co-operative society – a co-operative society which is authorized to function in more than one state of India. Since the procedure for the same is expensive which costs around Rs. 3,00,000 towards consultation fees and other charges to be paid to Government of India, where registration is to be done for multi-state co-operative society and also restriction of registration of Multi-State Co-op society due to the Sarada Nidhi Scam, West Bengal, we decided to go ahead with registering our co-operative society in TN initially and then extend our operation in other states in a phased manner.
OBJECTIVE: “Create an equal opportunity for all members and explore all revenue generation opportunities by utilizing the intellectual and business skills of our members across India and share the resources amongst all members”
VISION: Our vision is to create corpus of around 100 crores in 10 years with 20,000 members and to be one of the pioneers in co-operative society in India.
Benefits of Co-Operative Society:
Elimintation of Middlemen
Saving in Management Expenses
Minimum Stock
Economy in Distribution and Production Expenditure
Integration
Employment Opportunities
Equal Distribution of Wealth
Educative and Social Value
It helps to eliminate the evils of capitalism from the society.
It increases the business and economic activities in the country.
It promotes the welfare of the community.
CAPITAL: Promoter of this society would contribute initial capital for formation of society. Membership fees collected at the time of joining as a member of our Co-operative society and the subsequent amount to be paid as a monthly subscription would serve as capital. Once sufficient capital is ready, we would invest in supermarket initially in Tamil Nadu and then invest in a gradual manner in other states.
REVENUE GENERATION SCHEMES:
Let’s discuss the methodology I have in my mind to generate revenues and discuss in detail about all these.
1. Supermarket
2. Real Estate
3. Vehicle Insurance renewal
4. Pharmacy –setting up pharmacy or tie-up with medical shops for purchase of medicines for members and their family.
5. Value added services - creation of online platform for booking train ticket, air ticket, and recharge of mobiles.
SUPERMARKET: Indian retail market is growing at the rate of 40% per annum and this increase is attributable to the increased purchasing capacity of the consumers in India and their income. Indian retail market is estimated to be around 450 billion USD and considered to be the fifth largest retail market in the world and because of this multinational giants like Wal-Mart are planning to penetrate into Indian market through FDI (Foreign Direct Investment) route. Our plan is to utilize this potential and look at the strategies I have in my mind to make it as a successful model.
a). Online Software: Creation of a perfect online software to order provisions online and pay bills online for the purchase made online. The software would have price, product image and the total amount, which can be paid by customer via online or paid by cheque in the post or current dated mode while delivery of provision at their doorstep by our staff as per the time limit set by us based on the distance. It is applicable to our members only. Since members are scattered across the city, delivery of provisions to each and every members individually would be a time consuming procedure and would also cost much. To avoid this, provisions to all our members located at a particular area would be delivered at a time specified by us beforehand. By this, we can save transportation cost and time.
This online payment gateway system, if adopted, would be the first of its kind in India and I hope this would be welcomed by IT professionals who always prefer to do their transaction at the click of the mouse. This system would help us to increase our business.
b). Turnover: Opening supermarket initially in Tamil Nadu where we have presence of minimum 1000 members, say for example, it may be Chennai or Coimbatore depends upon our member count so that we can get a decent turnover to meet our operational cost and other administrative expenditures.
c). Import From China: Procurement of some FMCG from China so that members could get cost benefit and society can also earn profit considerably. Society is not allowed to import directly and we have some plan in store for that. For your information, Wal-Mart has imported around 50 billion worth of goods from China in the year 2012 and 70% sea transportation in the world is done from Chinese ports only. For example, assume that we have 4000 members and we all buy provision from our supermarket and provided that average purchase per month of a member is Rs. 2000. Profit at the rate of 5% of the transaction is as follows:
4000 * 2000=80,000,00 x 5%=Rs. 400,000 p.m and per annum it is 48,00,000.
REAL ESTATE: Investing in real estate in both agricultural and residential lands across India is the safe bet. Once we have good corpus, we may enter into this segment. Appreciation of land price across India will show the kind of return we can benefit by investing in this sector. Moreover, it is safe and risk free sector too. We have to invest at a time when the market is in downward trend. We may buy acres of fertile land and lease it to corporate companies for their renewable energy projects or it can be used by us to form a guest house or it can be used for cultivation of fruits and vegetables. Furthermore, fertile lands can be used to cultivate herbal plants and trees for which Central Government assistance is provided in the form of interest at lowest rate and the details of it is available with me for reference. Le me explain a product called “Carao” it is one of the fruit that can cure sickle cell anemia and I know that it can be grown in tropical climate like India. It is required for many research projects. This is just one example, I have so much information about so many herbal products which can be grown in India and can be exported to abroad and thereby revenue generation in the form of foreign exchange is possible. For details log on to this page:
http://www.costaricannoni.com/Other/Exotic-Fruits/Carao.
INSURANCE AGENCY: Insurance agency can be linked to our supermarket office where we have sufficient staff and thereby we don’t need to spend any additional sum for putting up an office for this purpose. Since vehicle insurance is mandatory for every motor vehicle plying on the road and it is investment free, we can enter into this market and our member strength is indeed a boost to us. We can authorize our society to function as insurance agent for all of us and we will enter into a tie-up with major insurance companies across India and renew the vehicle policy of our members through the website we propose to create for this and by this way we can generate revenue without any investment. Revenue is generated in the form of commission and it varies from 10% to 30% depends upon the premium and insurance companies. For example, assume that we have 4000 members and all have motorbike and assume that we spend Rs. 600 for renewal of our bike then our generation would be as follows:
No of vehicles – premium per month/4000*600 =24,00,000 x 15% commission=Rs. 3,60,000. This is our income per annum. The more the members, the higher is our income generation. Moreover, members willing to have additional health insurance, apart from the insurance we provide to our members through our society, they can do it through our platform and thereby revenue generation is possible to our society in the form of commission.
PHARMACY: We are all into healthcare industry and we know very well about healthcare industry in India and it growing at a rapid phase. Do you know that profit margin in pharmaceutical industry is around 25% flat, which is a good return on investment? We may invest in this highly profitable sector on our own or one of our member who has a B. Pharm background can invest his open money and open a medical shop at a place where we have more than 2000 members so that it is profitable for investor. The revenue generation can be shared by society and the investor as per the terms and condition we enter into.
VALUE ADDED SERVICES:
a). Telecommunication industry is one of the lucrative investment in India. We have world renowned players such as Bharti Airtel, Tata, and of course Reliance, one of the largest conglomerates in India. One of the world’s richest man and Mexico’s richest man is Carlos Slim who is from telecom industry only. In India, mobile phone sale is increasing leaps and bounds and this growth makes our telecom players a multibillionaire. Let’s enter this sector by providing recharge service through our proposed online website, wherein all our members should recharge via online and by this we may earn commission at a rate of around 3% for the total recharge done through our website. I would like to explain this with a following scenario. Say, we have 4000 members and assume that every members recharge for a sum of Rs. 200 per month and the result is as follows:
No of members: 4000
Recharge per member: 200
Commission from Service Provider: 3%
Income to our society: 4000 * 200=800000 =24,000 per month and 24000 * 12=288,000.
b). TICKET BOOKING: Online ticket booking has made booking tickets an easiest task. This service providing industry is growing rapidly. Members can do our bookings such as train ticket booking, bus booking and air ticket booking done through our website, revenues can be generated in the form of commission and advertisement revenue from service providers for advertising in our website.
WELFARE SCHEMES:
1. Insurance to all members via group insurance.
2. Pension plan for members.
3. Compensation to Members family ( in the event of death of member)
4. Monthly Survival allowance ( Deceased member’s family)
5. Educational guidance to members and their children.
6. Organization of competition among members’ children.
7. Celebration of annual day once in a year at a hotel.
8. Yearly trip.
9. Legal assistance to members through our lawyer.
10. Employment opportunities for members.
11. Franchisee opportunities for members.
Selvamani, MT India Member
IF YOU ARE GOOD WITH YOUR LANGUAGE SKILLS CAN MOVE ON TO CONTENT DEVELOPMENT , TECHNICAL WRITING, E-BOOK EDITING ETC. AND MAKE A DECENT LIVING. CALL QUITS TO THIS SAD INDUSTRY OF MT.