Industry Insights

A Little about Companies in India

April 2018 The Probe Newsletter
We present below facts about companies in India that are based on Probe analysis and estimates. This analysis is as of early April, 2018

Universe of Registered Companies

Universe of Registered Companies

  • Currently, there are 1,118,623 active companies in India, out of 1,838,627 companies ever registered.
  • Madhya Pradesh had 21,850 active companies, of which 2,358 companies were registered in FY 2018.
  • 20.5% of active companies in India were incorporated after CY 2015.
  • The chart does not include LLPs.

Probe New Company and LLP Incorporation Index

  • The Probe New Company and LLP Incorporation (PNCLI) Index was created using Dec 2000 as the base year, with 31,512 new companies and LLPs registered during the base year.
  • In Mar 2018, index value stood at 447 with a total of 141,002 new companies and LLPs incorporated in FY 2018.
  • In the last quarter of FY 2018, 36,454 new companies and LLPs were incorporated.
  • New company incorporation in Mar 2018 witnessed 50.3% growth as compared to Feb 2018.

New Company Incorporations

  • In Mar 2018, 12,039 companies were registered in India.
  • Among newly registered companies, 11,795 companies are private and 244 are public.
  • In Mar 2018, new OPC company registration saw a growth of 38.4% per month.
  • 10.3% of new companies registered in Mar 2018 had paid up capital Rs 10 lakh or more.

New Company Incorporations: State-wise Data

  • In Mar 2018, Karnataka stood third with 1,136 incorporations, of which 82.5% companies were based in Bengaluru.
  • 1,111 new companies were registered at RoC Kanpur, of which 812 companies had paid up capital of Rs 1 lakh or less.
  • In Tamil Nadu, 885 new companies were incorporated in Mar 2018, constituting 7.4% of all the companies incorporated in India.

New LLP Incorporations

  • In Mar 2018, 2,019 LLPs were formed in India.
  • With 261 LLPs, the manufacturing sector registered 12.9% of all LLPs in the month.
  • A total of 297 LLPs were registered at RoC Kolkata, amounting to 14.7% of total LLPs formed during the month.
  • 242 LLPs were registered in Delhi in Mar 2018, accounting for 12% of all incorporated LLPs.

Nationwide Spread

  • There were 1,118,623 companies active in India as of Mar 2018.
  • 15.1% of active companies in Maharashtra were registered in Pune city.
  • As of Mar 2018, 6,812 companies were listed in India, of which 12.7% companies were registered in Delhi.
  • Telangana had 54,660 active companies, which constituted 4.9% of all active companies in India.

Statewide Spread

    • Currently, there are 29,896 active companies in Haryana.
    • Gurgaon has 13,699 active companies, which account for 45.8% of all the active companies in Haryana.

With 4,880 active companies, Faridabad stands second in number of active companies.
617 active companies in Haryana have paid-up capital of Rs 10 Cr or more.

For more in-depth analysis for other states please reach out to Probe

Paid Up Capital

  • 34,400 active companies in India have paid up capital between Rs 2Cr to Rs 5 Cr.
  • As of Mar 2018, 1,978 active companies in Mumbai had paid up capital of more than Rs 25 Cr.
  • 113,983 active companies that had paid up capital between Rs 5 lakh to Rs 15 lakh, accounted 10.2% of the total number of active companies in India.

Directorship Overview

  • There were 2,099,053 active directors in India as of Mar 2018.
  • As of Mar 2018, Madhya Pradesh and Chhattisgarh collectively had 68,334 active directors.
  • Currently, there are 83,215 active foreign directors in India.

About Probe

  • Probe is an independent information services company focused on providing financial information on unlisted and under-covered companies in India.
  • The Probe42 platform has been extensively used by both banks and corporates
  • Our customers have found value in using Probe42.in to enable their decisions involving identifying prospects, preparing for sales, analyzing credit and competitor, etc.
  • Please reach out to us if you need information on any of the ~ 1,118,000 companies in India
Disclaimer

Copyright© Probe Information Services Private Limited. This newsletter is intended solely for the addressed recipient and any dissemination, distribution, or copying of this will require permission from Probe. Probe has relied on estimates, analytics, and other public sources of information to prepare this report and is not liable for any damages in connection with the use of the information.

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Using Data for Corporate Lending

The retail lending space has changed rapidly over the past two decades, thanks to the use of data and technology. We are starting to see a similar transformation in the business lending space, through use of public data and automation. Based on the trends we have seen over the past six years, we believe that keeping the following in mind will help you get maximum mileage out of using data.

1) Measure the benefits

In most cases, there is an existing lending process. This process is done using an ‘old way’ (for want of a better term) of doing things. With the availability of data and with technology, the same process can be done more efficiently. The right way to approach the problem is to:

  • Measure the overall cost of the existing process (end-to-end cost)
  • See how the process can be changed using public data that was not available earlier
  • Gauge what the material change will be, in the overall cost of the process
  • Run a controlled prototype of the new process
  • Roll out the new process, if it makes sense

One of the challenges we see is that the approach to using ‘data’ is done tactically, without taking an integrated view of the whole process and the more significant implications.

2) SaaS model

In the new disruptive world (which, one has to admit, has made a significant change to the way we live our lives, all in just the past few years), you can use SaaS-based solutions to solve most pain points. The advantages of this model include:

  • Quicker trial and implementation: See benefits rapidly or move on if it doesn’t work out
  • Easy implementation: Does not require any significant upfront technological or financial commitments
  • Pay-as-you-go model

In a world where managers are used to conceptualizing large projects that consume a lot of time and require significant upfront investments, this approach is both critical and effective.

3) Structured vs unstructured data

There is much talk these days about AI, NLP, Machine Learning, etc. With social media and various other sources of information, the potential of unstructured data is enormous. By mining and using unstructured data mining to its potential, your process can go a long way in terms of efficiency and intuitiveness. In the process however, don’t lose sight of ‘good old structured’ information. After all, only a strong foundation of structured information can form the basis of unstructured information and analytics. Note that you can’t analyze without having good clean data in hand. Analysis without data is just an opinion.

4) Good data costs, but pays back quickly

In today’s world, led by the Internet and Google, one gets a lot of information freely. As a result, we do see a strong underlying mindset that all data is of ‘low value’. In reality, good quality data takes a lot of time to develop and money to build up. More importantly, having a foundation of useful quality data saves significant costs down the road. One would be surprised at the number of processes that exist out there, where the sole purpose is to capture and cleanse data. Instead, if good clean data had been available at the source, much of the downstream costs could have been saved. Build on a foundation of high-quality data, and the downstream benefits can be massive.

5) Keep an eye open for strategic advantages

In an industry that has been around and regulated for several decades, there are several outdated processes that have been adopted by too many people. Fear of questioning the status quo is high. Technology and data are changing things rapidly. What is even more interesting is that the regulatory system is also learning to question some of these outdated ‘requirements’, and is willing to adapt to things that benefit the end borrower (in this case, a business).

In 1995, who would have thought an individual borrower could get a loan in 30 seconds? This would not have been possible until the day someone believed ‘it can be done’.

Similarly, data and technology have started to throw up several options which question the status quo. If you understand the tools available (read data and technology), and approach it with the intent of benefiting end borrower — while bringing down overall costs, improving credit quality, and reducing cycle time – bold thinking can take you places.

The Uber, Swiggy, Paytm kind of disruptive ideas are not limited to just the B2C world. Lots can be done in the B2B world too.

Use Firmographics to Segment your Audience Effectively

Are you ready for the new era of sales?

Today customers are more informed than ever on the highly competitive banking sector. In this highly competitive state, what is most important is how different you are from any other salesperson. Therefore, knowing your prospect better than anyone else is the key differentiator.

Market segmentation and targeting is a widely accepted approach in today’s business world. Be it business to customer or business to business, correct segmentation is imperative to serve the market efficiently.

Firmographics are some identifying characteristics of a business that help to group it, along with other companies that have similar attributes, into a significant market segment, with .

Just like we use demographics to define people, firmographics does the same for companies.

Firmographics are very useful in outlining market segments. With a more in-depth understanding of market segments, sales and marketing teams can now plan their strategies more effectively.

Variables of Firmographics

  • Industry
  • Size
  • Business Location
  • Structure
  • Performance

Purpose of Firmographics

  • To know more about the firm, with regard to their business activities, market situation, and government regulations
  • To segment the market better — creating more logical business categories and enabling the development of products that align with the business’ requirements
  • To optimize marketing efforts and improve conversion rates
  • To maximize sales and minimize rejections caused by statutory irregularities and non-compliances
  • To gauge opportunities for growth and foresee hidden threats by understanding industry data trends and comparing it with different markets

Benefits of Firmographics

  • Hasten the sales cycle
  • Identify new opportunities
  • Understand what you need to offer
  • Improve productivity by better targeting
  • Boost marketing ROI

How Probe42 Helps

With Probe42, you can easily define your target markets with ease by:

  • Accessing firmographics of over 1 million active companies
  • Using powerful search filters to locate companies in your catchment area

Login now to explore your company of interest.