Direct Costs, Indirect Costs (Overheads and G&A)

Knowing the overhead costs is essential to any manufacturer in calculating the total cost of manufacturing of a product and hence to set a profitable selling price. The buyer should always know what is the overhead cost and indirect cost included in the product as a percentage of the cost of the product that the …

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Whenever there is no positive correlation between EBITDA and FCF, always trust FCF.

Comparing any two entities, may it be two different sportsmen like Michael Jordan and Lionel Messi or two different companies like Apple and GE, is always very difficult because there is no common structure to compare them. It is comparatively a bit easier to compare sportsmen or companies within the same category as comparing Ronaldo …

Continue reading Whenever there is no positive correlation between EBITDA and FCF, always trust FCF.

Protect from unfair competition, but not from healthy competition

If there is no exchange or trade, every country has to reinvent the wheel on its own. Every country has to come up with its own inventions and completely relive all that has been lived by other countries like The United Kingdom. Imagine every country inventing a new computer on its own. This is what …

Continue reading Protect from unfair competition, but not from healthy competition

Manufacturing Challenges in India

I've read this article in Electronics Bazaar magazine and I thought it would be good to share some of the insights here. The world today sees India's economy growing into what's expected  to be one of the biggest global economies by mid-century. Although India is still viewed by manufacturers as an economy where the risks …

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