Showing posts from July, 2007

"Growth is Life" vs. "Think Flat"

What a weird topic, it feel at the first glance.

But these are the captions of the biggies in India. Both the companies have given the best value to the stake holders. They have brought millions of middle class people to a place where their dreams can be fulfilled.

The first one is the motto of Reliance Industries Limited and the second one of Infosys.

Let me first speak about 'Growth is Life". I am able to associate this with Reliance for sure in the aggressive mood in which they are expandint themselves into the horizons. Their growth is both vertical and horizontal. Every step that they take seem to go inline with the caption. They are providing stupendous growth to the stake holders. They are providing great growth oppurtunities for the employees. Their vision to grow in every sector is also quite evident.

But, for the split that the Ambani brothers had, everything was inline with their strategy to grow, grow and grow further...

Now, if I think of "Think Flat" Iam ha…

Cost of Oil

The eqn for the cost of oil is:
Cost per barrel x no. of barrels consumed per day x 365

India's oil consumption: 4 million barrels per day
Cost per barrel: $60
Total oil cost per day: $240 million = $0.24 billion per day
Total cost per year: $87.6 billion

If we assume the no. of barrels to be constant then, cost per barrel is the only variant in the above equation and that would decide the total cost.

So a $1 increase in the barrel price would mean an additional 4 million x 365 = $1460 million = $1.46 billion dollars
Similary a $10 increase would mean an additional $14.6 billion dollars of burden on our GDP.

India's GDP = ~30,00,000 crores of rupees = ~30,000 billion rupees = ~$700 billion
Percentage share of oil consumption in GDP = 87.6/700 = ~12.5%

That means if we were to import all the oil that we are consuming, we'd be spending around 12.5% of our income on oil expenses alone.

But, since we are importing "only" 70% of our oil requirements we are spending nearly 8.…

Laws of nature

While I was coming on the bike just a weird thought flashed my mind that why are there such huge differences around us.

Necessity is the mother of invention!
Nature will always find its way...

We have all these sayings which seem to reflect the general way of happenings.

But, why is it that people have things which are not required for them.

Even one of the mathematical laws nurturing the nature says that when things start going bad, they really go bad. It is always exponential changes that nature seems to be associated with.

I observed the following contrasting things around.

1) People who are happy seem to be unite well with their family members.
But people who have problems, cannot cope up with things.
2) People who are rich, in terms of money, are very calculative in their expenses.
But people who are running short of money seem to always encounter things which
asks for shelling out loads of money.
3) People who think a lot tend to get things which do not need brains.
People tend…