A Review Of The Indian Economy Commerce Essay


Indian Economy is experiencing a very high growth rate over last few years. This growth has created many opportunities for people such as access to better health services, better lives and employment. Though, many feel that rural population is not able to ride on these opportunities. At one side, rural population struggles to find employment; on the other side various employers are not able to hire employees as per their needs.

Indian has total workforce size of approximately 460 million, out of which 420 million in informal sector. The largest numbers of informal workers are in Agriculture. In the non-agricultural sector, the highest numbers of informal employees are in retail trade, construction, land transport, textiles etc.

Ants Consulting, already operating in 5 states, is planning to open up its online job portal. Ants Consulting job portal will be a unique solution providing job opportunities to large rural population across various states of India. It will create a cost effective channel to bring potential employers and employees together to fulfil their needs.

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The major challenge in providing this solution is reach of job seekers across large geographical in a cost effective manners. As these people are on constant move and change job frequently, it becomes quite important to update the profiles regularly. Ants could leverage its past relationship with State governments, and it could be the most cost effective manner to receive people's profiles.

Majority of Ants revenues would come from three revenue sources such as large scale employers, medium scale employers and a very nominal portion from job seekers. Based on current and past performances of various companies in similar sector, Ants would be able to break in 3rd year of its operation with mean cumulative cash flow of about 41.8 million. Scenario analysis suggested that under conservative scenario, mean cumulative cash flow could decrease a bit to 39.18 million, but the business will still have very high chances of being successful.

At last, Ants should constantly measure the growth of its business, and take corrective actions to cross its revenue targets. Such actions could include promotional activities, revising pricing plan or hiring people etc.

The management team of Ants Consulting has already has immense experience in dealing with rural population, and state governments. This could provide an added advantage to resolve any issues coming in its normal business operations. Their passion and commitment to provide sustainable livelihood to rural people is well suited for the success of their online job portal business.

The Concept

Job Portal

Distribution Partner



Employers, Placement Consultants

CV Registration India is one of the fastest growing emerging economies in world and has the workforce of more than 440 million. Many private companies have stepped in to organize the job market by launching the job portals which provide the platform for employers and job-seekers to interact with each other and satisfy their requirements. Several placement consultants have also emerged to help organization find suitable candidates. However, this market has been so far limited to white collar and educated employees. Very little has been done to organize the rural and low and semi-skilled job market. Given the growth in services sector(fast food chains, department stores, hotels), construction and infrastructure investment, requirement of such labours has increased manifold and there is growing need to provide organizations with an organized access to these workers.

Job Seekers


Industry Analysis

Due to exponential growth in services sector and booming Indian economy, there has been surge in employment in organized sector. As the penetration of internet continued to increase, the need of having an online platform to facilitate job search and job posting dawned upon several companies and entrepreneurs. Hence, several portals have cropped up in past decade to provide such platform. Following is the list of popular job portals operating in India.

Top Jobsites in India [1] 


Name of portal

Feature unique to portal



Gulf market it has 2 offices in Dubai and 1 in

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Always on Time

Marked to Standard

Order Now

Bahrain and Riyadh


Monster India


Times Jobs




Naukri Hub

Good Recognition in North India


Career India









Mostly focussed on fresher & college students



Number of visitors on top three websites

The above figure shows the overwhelming number of users visiting the top three job portals. "Total unique visitors" shows the number of users who have visited the site at least once.

However, all the job portals shown above are focussed on job opportunities available to highly skilled and educated employees in tier-1 cities. So far none of the major players, excluding Monster.com, have focussed on huge workforce and employment opportunities existing in agricultural and non-agricultural non-informal sector.

Analysis of Informal Sector

Estimate of Informal Job sector size in India

Around half the GDP comes from the informal sector [2] 

The total informal employment is 420 million out of a total employment of 460 million. The sector -wise informal employment is given in table below.

The largest numbers of informal workers are in Agriculture. In fact, 98.84 percent of the employment in agriculture is informal. In the non-agricultural sector, the highest numbers of informal employees are in retail trade, construction, land transport, textiles etc.

Sl. No


Estimated number (Million)























Non- Agriculture

















All India

















Though the employment in the unorganized sector in India is about 394.76 million, the informal employment in the country is 420.01 million. Out of 65.48 million employees in the organized sector, about 29.91 million are informal employees. Among 394.76 million unorganized sector employees, 4.66 million are formal employees. The relationship between informal sector employment and informal employment is indicated in table below.

Distribution of Employment between Organized and Unorganized Sectors


Employment (Million)
















Renowned Portals in Rural and Informal Job Sector

Name of Portal

Focus Area


Agriculture, Rural Marketing, Retail and Development sector


Predominantly focussed on availing job opportunities to rural workers

Key Success Factors

Analysis of business models of successful players like Naukri.com and Monester.com suggests that following factors need to be present in a job portal for being successful in long term.

Access to large number of job seekers

The key to success in job industry is to build a large database of job seekers. This would act as a unique selling proposition for attracting employers. Building a database of semi or low skilled workers is itself a challenging task, given the difficulty associated with identifying and reaching needy workers, creating their resume and uploading same on portal, and updating it from time to time. However, once such database is built, it will work as sustainable competitive advantage in long run as it would not be easy for new players without incurring huge cost.

Relevant resume database

Many job portals got weeded out of the market as the resume put on database were either of no value to employers or obsolete. Updating resume regularly and displaying only relevant resume to employer would create loyalty among the customers and help them retain over long period.

Strong and dedicated sales force

In Job portal industry, it is important to have a strong sales force which has complete understanding of the features and services offered by portal so that they can persuade the employers to prefer it over other way of fulfilling candidate requirement. Naukri ascribe its success to its sales force which has been growing stronger since the inception of company and plays key role in bringing new clients.

Partnership with entities with strong reach to rural and small cities

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Establishing reach to workers in rural and semi-urban area is cumbersome and investment intensive task. Success of Rozgardunia.com is due to ubiquitous distribution network of ITC. Hence, it is imperative to have early partnership with such entities which have strong network in such area to tap workforce. It would also fend off the entry of competitors as they would not be able to find other partners with same reach in those places.

Innovative offering

The company needs to be updated towards evolving needs of employers and capable of providing suitable solution before any competitor does. For example, RuralNaukri.com has created a unique perception of being empathetic to the needs of employers by launching several innovative services like offline consulting, REAP etc to tap the emerging needs of employers and employees.

Competitor's Analysis


Company Profile

Ruralnaukri.com was started in 2001 by Rural Management Consultants Private Limited (RMCPL).

Management Strength

The founder and CEO, Dr. Ajay Gupta has 18 years of work experience in Corporate and Development sector. He has roped in a group of professionals to provide value added services to various stakeholders.


Employee's Services

Employee's Resources

Employer's Services

Haat for Rural Talent

Free Registration

Search Jobs

Send Resume to 1500 NGOs

Send Resume to 1000 Consultants

Have An Appealing Resume Made

Mock Interview


Advertise Your Resume

New Services to RATE Employees (A+)

Resume Making

Interview Preparation

Free Registration

Place Job Advertisement

Offline Services

Guide to Search Employees


Money Back Guarantee

Fresh Harvest Program

Staffing Solutions

Job Wanted Resumes

Recommend Someone and Earn Reward


Its business model is focussed on addressing the need of providing a meeting platform for the employers and employees in Agriculture, Rural Marketing, Retail, and Development sector.

It locates the right set of employees in nearest vicinity of organization to ensure the minimum cost of employment for organization and the hassle-free job opportunity for employees.

Key Success Factors

The company leverages its pool of talented employees and dedicated professionals to provide offline recruitment services for key functional areas such as supply chain, procurement, processing to valued clients.

Well managed offline services to clients which is unique to this company, enhances client loyalty and helps them manage effectively unsteady manpower requirement due to seasonal nature of business of majority of clients

One stop solution to all employment and job-search need

Innovative offerings: Since its inception, it has embarked on several initiatives to create employment in rural areas by attracting the attention of NGOs and private sector organizations. One such initiative was REAP (Rural Employment Action Programme) which allows the NGOs and private organizations to offer employment to rural youth (10+2 and above) at monthly payment of 2500 rupees.


Company Profile

Rozgarduniya.com was launched in August 2009 by the joint initiative of ITC e-Choupal and Monster.com. It offers a platform to companies to hire skilled and semi-skilled workers from rural areas.


Since inception, the initiative has been targeted towards creating employment opportunities for rural people and providing corporate a way to connect to and tap the talent in rural areas.


Being a relatively new website, it offers relatively lesser and basic services vis-à-vis its competitors. Currently it derives revenue mostly from employer looking to post job requirements and to have access to candidate database. However, as soon as its ambitious plans of scaling up its existing operation to cover all ITC e-Choupals are achieved, it will focus on next round of growth by providing value added services.

Management Strength

The initiative is backed by talented managerial pool of ITC's e-Choupal and Monster.com who have track record of successfully spearheading several initiatives.

Key Success Factors

ITC's ubiquitous distribution channel, reaching out to 40,000 villages through 6500 kiosks across ten states.

Expertise of Monster.com in offering portal services worldwide

Brand image of both the companies in their chosen area of offering

Government Sector

Employment Exchange

Employment Exchange provides job opportunities to the job-seekers in state sectors. It allows unemployed educated youth residing in a state to register with respective employment exchange and get notified when any suitable job opportunity is available in different sectors of that state.

Since this initiative is focussed on availing job opportunities in state sector, it does not come in direct competition with job portals. However, it offers an opportunity to private players to collaborate for better reach to rural people.

Value proposition of Job portal offered by Ant Consulting

Ant Consulting Services will leverage its six years of expertise in training and recruitment solution offering to provide an organized portal which will provide strong values to both employers, looking to recruit semi skilled or unskilled workers in any number, and job seekers who does not necessarily have competency to build resume and operate portal. The employers will have access to a large and authentic database of employable workforce, categorized according to industry wise exposure, which can be used to recruit the workers by organization itself without incurring huge cost of soliciting several placement consultants and placing Ads for the same. Job seekers can also register themselves free of cost and have their resume visible to several employers. The portal will offer complete suite of services to its clients:


Advertisement from SMEs and other organizations

Brand building/awareness

Job listing services

Access to updated employee database

Guide for employee search

Information Intermediation

Information about upcoming training, recruitment drive, attractive offers

Invitation to other companies for contract


Free registration

Assistance in resume building and resume upload

Assistance in job search

Flashing resume to several employers

Enhancing the reach to employers

Note: portal can also be designed to provide employers with SMS based solution to reach shortlisted candidates through SMS with single click. It can be further enhanced to receive their responses directly in company inbox. This two-way communication will certainly reduce the hiring time.

Differentiation and sustainability

In order to differentiate its services from other competitors like Ruralnaukri.com, who offer similar kind of services, Ant Consulting Services will address the challenges that are inherent in unskilled and semi-skilled job market, but are still not dealt adequately:

Reach: Ant consulting will proactively reach out to the employable workforce and help them build and upload resume on portal. It will devise a distribution channel to locate the employable and employed workforce and make sure that all the workers of targeted geography are registered on portal.

Authenticity: The job portal will be consistently updated to keep track of candidates who are already employed and the workers who are still out and available of employment. It will minimize the cost to organization as available resumes on portal will be up for employment and the calls to candidates who are already employed and not looking for employment will be reduced to zero.

Simplicity: Ant Consulting will put maximum effort to make sure that the portal can be used easily by both employers and employees with minimum effort. The interface will be highly interactive and simple enough to automatically guide users through its usage.

Value: All job seekers can register themselves on portal without any charge. As targeted workforce is not sophisticated enough to create and upload their resume on portal, Ant Consulting will offer additional value to candidates by enabling them create resume at near-to-zero fee and enhance the chance of employment by flashing it to several employers. On other hand, employers will also be able to manage their recruitment affairs at lower cost than any other route as they can directly access those workers in large numbers at one place.

Additional product and services

Ant Consulting has expertise of providing training to employees and managing recruitment affairs of organization. It can leverage its experience to offer additional services e.g. several offline services like virtual training program to employees, managing bulk recruitment for construction projects, job specific training to prepare them for particular need etc.


Offline Services

Recruitment for executive level employees

Bulk recruitment for seasonal requirement

Training Services

Requirement specific training

Enabling employees for different roles

Talent Harvesting

Pool of talented and readily employable workers

Resume of fresh pass-outs from school or colleges


Resume flash to sought organizations

Training for soft skill development

Specific training for easy employability

Target Segment

Case: US Pizza

US Pizza is a retail chain of indigenized pizza outlets located in several cities in India. Opposite to what its name suggests, it is purely an Indian brand with its first outlet opened in Bangalore. It boasts of offering a global product with local tastes.

The store manager of US pizza outlet, located in Bannerghatta, finds it difficult to manage the manpower at his store. He cites several reasons for the same: 1. High turnover rate 2. Unorganized access to ground level employees 3. Ineffectiveness of paper Ads or any other media in attracting such employees and 4. Unjustified placement consultant's fee for such a small requirement.

Currently, due to unavailability of an organized access to store workers, he manages the recruitment in following two ways:

Employee referral bonus: If the store runs short of employees, referral bonus is announced to existing employees for bringing new candidates. The bonus ranges from 1000-1500 rupees per employee hired this way.

Placing Ads: He places ads in paper, radio and different other media for attracting candidates for vacant post. Currently, the store expends about 500 rupees per month for placing such requirements. However, this medium is less reliable and uncertain as it is difficult to tell when the candidate will turn in for requirement and whether there will be any requirement, if he comes for interview.

Hence, in total he spends about 8000-10000 rupees per year. Upon briefing the idea of portal, he was little sceptic as to whether an online portal over internet would be able to provide him with needed access to ground level workers that his store requires. But, he also seemed quite enthusiastic about the prospect of having such portal at his disposal as he feels this would not only reduce the hiring cycle team but cost also.

The portal will offer services to two important groups: employers and employees. It will target following segment:


Large Scale Employers

This segment comprises the employing having requirement of large number of ground or semi skilled workers on regular as well as seasonal basis. Example: Construction companies, Departmental stores etc.

Medium Scale Employers

This segment would consist of employers having need of ground or semi or low skilled workers on regular basis. Example: hotels, pizza outlets, fast food chains etc.


Ground Workers

This segment includes the workforce which is marginally educated or uneducated and is required by employers in large number. Their requirement by employers more often tends to be unsteady and is slightly difficult to handle given the challenge of reaching them, creating their profile, keeping track of their employability and updating the same on portal.

Semi skilled works

It includes the workers who are secondary or higher secondary pass-outs and are required in services jobs like departmental stores, pizza outlets etc. More often, they are sophisticated enough to create their own profile and use portal. This segment also offers opportunity to provide value added services like resume flash, mentoring etc. and is less challenging than previous segment in terms of reach and handling.

Note: For initial 5 years of operation, the company is planning to limit its operation to Karnataka and Andhra Pradesh. Hence, the above segment will be geographically bound to these states only.

Market Size

Job seekers: Based on our study, we tried to find out the rural labour market situation in India. India's population is expected to be around 1,166,079,217. The workforce population in India is growing at a rate of 2% per year. Rural population is expected to around 72% in India, where male to female ratio is 1.06. Out of whole rural population 64% is expected to be contributing to potential workforce population, with age between 15-64 years. In Rural areas, we expect 80% of male potential and 25% of female population to be actually willing to work. Based on the above analysis we arrived that 286 million rural population can be employed.

Rural Workforce Statistics



Growth Rate




Rural Population (72%)


Age 15-64 years (64%)








Looking for job



Male (80%)



Female (25%)


According to CSO statistics, Karnataka and Andhra Pradesh have 35 million and 55 million of rural population respectively, which Ants is targeting for its initial few years of operations.

Employers: As Indian economy has progressed over the years, it has created job opportunities at every level. We are seeing an ever increasing number of retail chains, malls and other shops opening in cities. Apart from executive level jobs, these also require unskilled and semi-skilled labour for executing their day to day operations. Also, these jobs have traditionally seen high attrition rate compared, so companies need to hire frequently. Companies like Reliance mart, Pizza Hut, Construction companies, Small scale industries etc. face difficulty in finding and hiring these people at low cost and less time. We see a barrier between employable rural population and employers, and this gap can be curbed by creating a channel of communication between them.

Marketing Plan

As the portal tries to tap small and medium scale industries on Employer side and low and semi skilled workers on candidate side, it becomes important to devise marketing plan strategically so as to maximize the reach while keeping expenses in check.

Stage 1

At this stage, marketing plan will try to achieve following two objectives:

Attract employers to place their candidate requirements on portal

Reach job-seekers to get them registered on portal

Direct Marketing


Cross selling to existing clients: Ant Consulting can leverage its existing client base to generate revenue during initial phase. It needs to compile list of all the candidates who have approached it or any other agency for candidate requirement. Now depending up the revenue potential, it can classify them into different categories ranging from most lucrative to plain customers. It can educate each client category depending upon their strategic importance to Ant Consulting of the services being offered through portal and of how it can reduce their cost of managing manpower.

Sales Force: During the initial phase of marketing, the company will maintain a small sales force for attracting medium and large scale employers which are not currently related to Ant Consulting in anyway. The sales force will reach out to different employers to educate them about the inception of portals and its benefit of managing recruitment affairs. As Ant is planning to focus on two states only during its initial years of operation of portal, 3 sales persons can be hired for each state who will directly report to the senior sales manager responsible for particular state.

Figure: Reporting Structure of Marketing Team


The distribution channel discussed in following section should be harnessed to reach out to large number of job seekers and get them registered on website.

Referral Marketing: It should devise an incentive system for inducing employers as well as candidates to rope in other organizations and candidates respectively. Incentive could be anything ranging from monetary gift to free subscription or job posting on portal.

Ad Placement on local radio channel and paper: As placing Ads on radio channel and paper has become cheaper, the company can leverage the reach of these mediums to increase the visibility of portals among job seekers and medium-scale employers


Once the portal starts getting traction among existing clients and targeted employee base, it should augment its marketing plan by advertising the portal through mass media. It would add to the popularity of website and create demand-pull from customers.

Ad & Promotion: Portal can also be advertised through placing Ads in newspaper and trade magazines dedicated for medium and large scale companies. The company can also look upon alternatives of sponsoring popular events in certain geography to increase

Online Advertising: The portal can be advertised over search engines like Google and other similar popular websites that are expected to be used by targeted segment.

SMS based Advertising: Mobile penetration in rural area is more than any other mode of communication and different mobile companies are offering customized region based advertising. This can be effective medium for attracting rural job-seekers to apply for job through portal.


The portal needs to be positioned suitably for both the stakeholders. For employers, portal can be positioned as one-stop-shop for all the recruitment needs and for employees, it can be positioned as platform having good database of lucrative jobs and fast placement capability. The portal will promise to deliver following values to its customers-both employers and job seekers.

Strong reach to semi skilled and unskilled wage labours and workers

Reduced recruitment cost & hiring cycle time

Updated and relevant database of job seekers

Reduction in junk and irrelevant responses

Brand building opportunities for employers


Distribution Plan

The most important and difficult part on which success of this business plan rests is Distribution plan. The key factor which makes this task difficult is the reach to potential job seekers, which are spread over large geographical reach, especially not much tech savvy to be able to operate a computer to enter the details of his resume.

Flexible Model: One possible way could be that an Ants representative will go around the rural places and collect the profile of possible candidates. He would also be updating the profiles of received in the past and details such as right now they are looking for job or not. Though, the tasks seems simple, it has huge cost implications, especially for a company like Ants, it would difficult to fund frequent travel and personnel costs.

Private Collaboration based Model: Other way could be to have collaboration with institutes which have reach across rural areas. These institute's representatives could collect and update the profiles of job seekers from time to time. Though, Ants might need to share some part of revenues generated. Recently, we have seen Monsterindia collaborating with ITC's e-choupal to get access to rural population. ITC has a representative in each village called Sevak. His responsibilities include educating farmer about new farming techniques, crop insurance and help them to get best for their crops. Sevak has been given the responsibility to receive new profile database, and update the existing ones. It helps in reducing the cost for managing the profiles of job seekers.

ITC e-choupal

Current statistics

States Covered


Villages Covered


No of e-choupals


Farmers empowered

4 million

A similar initiative has been started by HUL, called project Shakti, which helps HUL to distribute its product at village level. They are already using IT enabled portal called i-Shakti, which helps individual kiosks to share information with each others. Currently, there are over 45,000 Shakti entrepreneurs covering over 135,000 villages across 15 states. Ants could approach HUL to get the reach across villages.

Government Collaboration based Model: Ants could also collaborate with state employment exchanges. An Employment Exchange is an organization that provides employment assistance on the basis of qualification and experience. The Departments of Employment in various States of India allow unemployed educated youth residing in the respective States to pre-register for impending job vacancies occurring in different sectors of that State. The registered job seekers, in many States, can also check their status on the job waiting-list online. They also allow job seekers to search for suitable jobs and to update their resume. Employers can post their vacancies with these exchanges and choose from among the registered candidates as per their requirements. Ants has been working with many states to provide vocational training to rural youth, Ants could work with these employment exchanges to help spread these profiles across their own pool of employers who are looking for candidates. Employment exchange would be happy to share data, if ants would help people to get job from employers. But, in future other companies might also request to collaborate with them.

Company Profile

Ants Consulting, started by Mr. Rajesh Rathod and Ms. Rumi Sikdar, provides end-to-end livelihood solutions for rural unskilled or semi-skilled people.

Ants Consulting provides solutions in Vocational & Skill Training, Recruitments and Micro Enterprise set up. Ants Consulting has trained more than 25,000 people in the last 5 years and at the same has access to 48,000 and more people across 5 states. These services can be consolidated by creating a software tool, database for each state and end users (Industries and companies) requiring the manpower.


Mr. Rajesh Rathod: Mr. Rajesh is currently managing the operations of Ants consulting, and he is also the originator of the idea of having a self-sustainable online job portal to provide employment to rural area job seekers. He is an IIM Ahmedabad graduate from the PGDM batch of 1991. His past experiences include Advertising head of Hutch. Later he wanted to do something for rural people, and started non-profit organization Ants Consulting.

Ms. Rumi Sikdar: Ms. Rumi Sikdar is the founding member and director at Ants Consulting. She has worked for 11 years with Corporate and Development Sector and turned into Social entrepreneur and started Ants Consulting with Mr. Rajesh Rathod. She has done Management Programme for Women Entrepreneurs from IIM Bangalore.

Financial Plan

Pricing Plan:

Based on the current pricing strategy of various job portals, and looking at the segment where Ants Consulting plans to focus, we have arrived at the following pricing plan:



Validity Period




Per job listing


2 months

Two months subscription


2 months

Six Months Subscription


6 months

One year Subscription


12 months




Banner on Home Page


1 week


1 month

Banner on Employees Page


1 week


1 month




1 month subscription


1 month

6 months subscription


6 months

1 year subscription


12 months







0-5 years work experience



5-10 years work experience



>10 years work experience






Consultants directory - Individual


12 months

Consultants directory - Organization


12 months

Initial pricing plan has been arrived at taking conservative estimates, but after few years of operations, we suggest it to be revised as we will have a better understanding of customers and their price constraints.

Start-up Cost

To start the business, Ants would require certain initial one time start-up cost. We have divided this into different items such as one time job portal development cost, server and software cost, racks, UPS and workstation costs.

Startup cost

Vendor personnel



2 server, 2 software



AC racks, UPS, stabilizer



per person workstation



4 ACs



We have assumed that a vendor will work on building the job portal, and it will take approximately 3 months to conceptualize and implement the requirements of a job portal. He will be paid 1 lakh pm for 3 months. Other costs are self explanatory.

Ongoing cost

Apart from one time start-up cost, there will be some costs which would occur every year, such as personnel costs, rent, utilities etc. The estimates of the ongoing costs have been shown in the table below.

Ongoing Cost

2 software engineers




2 sales manager (1 for each state)




6 sales personnel (3 for each state)




Data entry operators*




1 accountant




Office rent




Office premise deposit
















office supplies








*every year 2 new data entry operators will be hired

Income Statement

Income statement has been prepared for initial 5 years of operations. We have assumed the business to be all equity financed. Looking at the growth of companies in the past similar to Ants, we have taken revenue growth estimate of 80% with cost growth estimate of 15% for first 5 years. If company is able to grow as per these estimates it will be able to break-even in 3 year of its operations. Assumptions, Profit per year and the cumulative cash flow estimates have been shown in the table below.


Revenue per Large scale employer: Rs. 70,000 per year

Revenue per Medium scale employer: Rs. 12000 per year

In first year, 50 LSE and 100 MSE are acquired as customers.

Depreciation of 20% per year

(All estimates are in Rs)















Cumulative Profits







Break-even Point

Scenario Analysis

To assess the risk of the business, we have also done scenario analysis for Ants business. We used monte-carlo simulations for this. We took some conservative triangular distributions for the inputs.

Growth rate of ongoing cost:

Minimum: 10%, Mode: 15% and Maximum: 20%

Growth rate of revenues:

Minimum: 60%, Mode: 80% and Maximum: 100%

LSE acquired in first year:

Minimum: 30, Mode: 50 and Maximum: 60

MSE acquired in first year:

Minimum: 70, Mode: 100 and Maximum: 120

Taking above distribution as input, we arrived at the following result for cumulative cash flow for first 5 years of its operations:

We could see that the chances of cumulative cash flow being negative is zero, with mean being at Rs 38.18 million, and 90% chances being in between 20.5 million to 58.1 million. There is a high deviation in the observed value, and it has maximum correlation with the revenue growth rates. So, Ants is advised to constantly gauge and try to maintain its revenue growth.

Implementation Plan

Serial Number



Period Required


Portal Development

Vendor will be hired to develop the needed portal

3 Months

Infrastructure Development

Rent office

Purchase Computers, servers, ups, ACs

3 Months


Hire personnel

Technical team will comprise two software engineering to monitor the portal.

Marketing team consists of two marketing managers and six sales personnel.

One accountant will be roped in to keep track of financial.

1 Months


Marketing will be done as per the plan described in section "Marketing" above.

Ongoing Activity


Continuous monitoring will be required to track following

Track the revenue growth and ensure minimum target for breakeven is met

Track expenses on various activities to keep cost in check

Assess the effectiveness of marketing plan to ensure clients are added continuously to meet revenue growth target

Ongoing Activity


Income Statement (5 Years)

Financial Performance of Naukri.com (1999-2003)













Cost Incurred






Gross Profit












Selling/General/Administrative Expenses












Other Expense






Total Operating Expenses












Operating Income












** Naukri.com was started in year 1997 with self funding.

***In mid 2000, it approached ICICI bank for venture funding.

Income Before Tax