In a telling shift that captures India’s economic metamorphosis, Zomato—the food delivery platform that has become a fixture of urban Indian life—is poised to replace JSW Steel in the Sensex, with whispers of a Nifty 50 inclusion following close behind.

This changing of the guard signals more than a routine index rebalancing—it heralds a fundamental shift in what constitutes corporate power in modern India, and highlights how digital platforms are displacing the industrial stalwarts that once embodied Indian enterprise.

“I think more tech-enabled [companies] are going to be in the top 50,” observed Deepak Shenoy, Founder and CEO of Capitalmind, in conversation with YourStory’s Founder and CEO Shradha Sharma. Yet unlike Silicon Valley’s architects of innovation, India’s digital revolutionaries are charting a different course.

“Zomato is a tech-enabled business,” Shenoy elaborated. “Its business is food delivery and quick commerce. It is not really a tech company from the face of it because a tech company in general would be producing a product that is primarily technical, like Nvidia or Microsoft. What you sell is not tech, what you use is technology to sell the goods. It is a good thing and more and more such companies will come in.”

This nuance is crucial. Even Reliance, the embodiment of old-economy might, now channels its ambitions through the digital arteries of Jio Platforms. The revolution, it seems, isn’t about creating new technology but about reimagining how India does business.

The public markets are witnessing this shift in real-time. Swiggy leads 2024’s global tech IPO calendar, joining other digital enterprises like Ola Electric and FirstCry in their public market debuts. In the same space, Zepto, another quick-commerce player, recently secured $350 million from domestic investors, led by Motilal Oswal.

“You are competing with companies in the public space that make aluminium and steel, they are very boring,” Shenoy noted. “At least the likes of Zepto, Zomato and Swiggy come up with something more interesting to invest in. You can experience their story in real-time. How do we know who makes the best aluminium? Here you can see improvements tangibly, by providing better packaging material, better service, faster delivery etc.”

Yet beneath this digital transformation lurk questions of sustainability. “I think competition is going to increase dramatically whether it is Reliance, Dmart or Aditya Birla,” Shenoy cautioned. “As an investor, the story still has to evolve. You need to see these companies start giving meaningful profits at some point.”

The narrative grows more complex in quick commerce, where India’s foreign investment regulations—which have already entangled Walmart-owned Flipkart and Amazon in regulatory scrutiny—restrict inventory control. Shenoy points out that Zomato’s foreign ownership structure has, thus far, kept inventory costs conveniently absent from its balance sheet.

“You over-order something and you under-order something else, you will have inventory holding costs. This is not visible on Zomato’s balance sheet because they don’t officially own any of these entities.”

A closer examination reveals that Zomato’s profitability draws heavily from investment income—its substantial cash reserves, exceeding Rs 10,000 crore before its Rs 2,048 crore acquisition of Paytm’s events business Insider, have been deployed in fixed-income instruments. This financial engineering, while legitimate, raises questions about the underlying business model’s strength.

From its Bengaluru headquarters, Capitalmind, managing over Rs 1,300 crore through algorithm-driven strategies under SEBI’s oversight, continues to analyse this shifting landscape. As India’s corporate hierarchy undergoes this historic realignment, the question remains: Will this tech-enabled transformation deliver the sustained value creation that marked its industrial predecessors?

The Indian stationery market is a vibrant landscape, particularly when it comes to the pencil segment, which boasts a notable valuation of ₹4000 crore. For a long time, well-established brands like Nataraj, Camlin and Apsara held the crown. But then came DOMS, a fresh brand with a secret winning strategy.

In today’s article, let’s explore the captivating journey of DOMS and uncover the unique factors that have pushed it to the forefront of the market, setting it apart from the competition.

How DOMS disrupted the stationery market in India

Recent data reveals that DOMS achieved an impressive consolidated revenue of Rs 1,547.27 crore for the 2023-2024 period. But what’s the secret behind this remarkable rise? Let’s dive into the key factors that have made DOMS establish itself as a leading brand.

5 sharp success factors

1. Killer product innovation

Founded in 1975, DOMS’ success is rooted in its commitment to quality. Unlike many competitors that used graphite and clay to make their pencils, DOMS incorporated polymer into their lead mixture. This innovation resulted in pencils with stronger and darker ink, leading to satisfied customers.

By understanding the needs of its core audience—students—DOMS effectively captured customer preference. Additionally, the triangular shape of their pencils provides a sturdy grip. Today, DOMS’ pencils and other stationery products are recognised for their superior construction and smooth writing experience.

2. Solid supply chain game

Not many of us may know that most DOMS products are built from scratch. Whether it’s wood, paint, or lead, the company handles in-house production. By doing this, DOMS is cost-effective and saves money, protecting itself from price fluctuations in the commodity market.

3. Smart branding and marketing

When a child brings cool stationery to school, it quickly becomes the talk of the class. This is exactly how DOMS established an endless word-of-mouth marketing chain. With its smooth writing and sleek triangular design, every child wanted to use their pencils.

In addition, all DOMS products possess a distinct appeal. The subtle sweet aroma from their erasers and the colourful packaging of their stationery helped the company build a premium-looking brand that kids find irresistible.

4. Becoming a distribution powerhouse

A key factor contributing to DOMS’s success is its strong distribution network. The brand made its products widely available across the nation, reaching a diverse customer base. Currently, DOMS has over 120 stockists and more than 4,000 distributors.

This extensive reach provides DOMS with a competitive advantage over brands that find it challenging to enter various markets. Moreover, the company has a global presence, serving more than 45 countries.

5. Selling more than just pencils

Although DOMS positioned itself as a premium brand, the company realised that selling only one product would not be sufficient. To address this, they opted to offer packages or kits that included various complementary stationery items at affordable prices. This strategy attracted parents and schools who were seeking durable, high-quality stationery without breaking the bank.

The takeaway

DOMS has made an impressive leap in the ₹4000 crore Indian pencil market, showcasing the impact of innovation in capturing consumer attention. By placing customer needs at the forefront and establishing a robust distribution network, DOMS has successfully shaken up an industry that was long ruled by traditional players. Their journey serves as a masterclass for entrepreneurs and marketers alike, highlighting the significance of clever brand positioning, the ability to adapt, and the crucial role of understanding consumer behaviour. If you’re looking for inspiration on how to carve out a niche in a competitive landscape, DOMS’ success story is a shining example!

In 2009, Tata DoCoMo made a grand entry into India’s telecom landscape with a game-changing idea: 1 paisa per second billing. Suddenly, the power was in the hands of consumers who no longer had to pay for unused seconds of a call. The buzz was electric.

Tata DoCoMo became the talk of the town, winning hearts and market share in an industry ruled by giants like Airtel and Vodafone. Yet, a few years down the line, the once-promising disruptor vanished. So, what went wrong?

In this article, let’s explore the journey of Tata DoCoMo, and why its story remains a cautionary tale for businesses!

5 Reasons why Tata DoCoMo shut down?

1. A winning strategy that was easy to copy

Tata DoCoMo’s biggest appeal was its 1 paisa per second billing model, which resonated with price-sensitive Indian consumers. Later on, they launched attractive services like the “Diet SMS pack” where users only pay for a text message depending on the number of characters.

This gave the brand an initial boost and attracted millions of subscribers. However, this strategy had a critical flaw: competitors quickly adopted it.

Without a significant differentiator, Tata DoCoMo struggled to maintain its edge. The aggressive pricing triggered a race to the bottom, squeezing margins in an already low-profit industry​.

2. NTT’s exit and legal hurdles

India’s telecom sector was fraught with regulatory challenges during Tata DoCoMo’s tenure. The 2G scandal and policy shifts created uncertainty, impacting investor confidence.

Additionally, when NTT DoCoMo, Tata’s Japanese partner, decided to exit due to poor performance, the company faced legal problems. The Reserve Bank of India (RBI) barred Tata from paying NTT DoCoMo a pre-agreed exit amount, leading to a prolonged legal battle.

3. Lack of innovation and financial struggles

The joint venture between Tata and NTT DoCoMo started on a high note, but differences in business strategy soon emerged. NTT wanted to exit after sustained losses, but the dispute over the exit terms escalated into a legal saga.

This strained partnership impacted Tata DoCoMo’s ability to focus on growth and innovation. So, to scale up and stay competitive, the company made big investments, particularly in 3G. It spent over $500 million to start 3G services in 9 states.

While these investments were necessary to expand, they didn’t translate into proportional revenue growth. Moreover, its coverage in lower circles compared to its rivals eventually resulted in huge losses.

4. Service limitations

Despite its clever start, Tata DoCoMo lagged in expanding its network infrastructure. Poor coverage and inconsistent service quality began to frustrate users. In a highly crowded market where customers demanded reliability, this became a major disadvantage.

Meanwhile, bigger players like Airtel and Vodafone strengthened their networks, pulling away Tata DoCoMo’s user base.

5. The Jio wave

The Indian telecom sector witnessed massive coalitions of firms, leaving little room for smaller players. Tata Docomo struggled to keep up as competitors merged and scaled operations. Also, the entry of Reliance Jio in 2016, with its disruptive pricing and free data offers, was the final nail in the head. Jio’s aggressive approach reshaped the industry, forcing Tata DoCoMo to merge with Airtel in 2017.

Lessons from Tata DoCoMo’s Fall

Tata DoCoMo’s journey speaks volumes about how a highly crowded space calls for innovation and rapid growth for survival. While its 1 paisa per second billing model revolutionized the market, its partnership issues, and stiff competition led to its downfall. For businesses aiming to disrupt industries, Tata DoCoMo’s rise and fall is a reminder that innovation must be backed by robust execution, financial health, and adaptability.