Out of the top 25 companies, the total profit for the year FY 2015-16 is more than 250,000 crore. Now imagine, 1% of the amount is annually dedicated to CSUR (Corporate Start-up responsibility) and just even with 1 crore is invested in each start-ups, which has built traction with a strong team and seeking the mentorship and support from these companies can reach greater heights. Around 2500 companies can come up with strong support of this Corporate’s.
If we further reduce it to top 13 companies, the profit is around 150,000 crore. While analyzing the top 13, the start-ups in the respective sectors can benefit immensely.
Top 13 companies in different sectors with their annual profits
No Sectors Annual Profit Sectors which can support No of Start-ups
|3||Oil & Gas||33835||Clean tech||338|
The top 4 banks namely SBI, ICICI, HDFC and AXIS Bank together with 39331 crore profit can support with 1% of their profits towards CSUR (Corporate Start-up Responsibilities) to 393 start-ups in the Fin tech sector alone. It will not only boost these start-ups morale but also help the top 4 banks to get access to the innovative technologies and products as well as services developed by these start-ups. By broadening the vision of these start-ups, a global product or services model can be built. Since, it is a with profit initiative of Banks, it can get around 10-20% equity in each start-ups or get preferential shares or convertibles. Alternatively, banks can lend to these start-ups with a convertible with annual payout options.
Just by nurturing and giving access to research of the Banks requirements, many start-ups can create world class products. This will not only boost the morale of start-ups but also will help them to establish in the market and get access to the next round of funding by institutional investors like Venture Capitalists. In fact, The VCs would love to support a Start-up, which is nurtured by any of these Banks. A structured approach is required by the Banks to support these start-ups for ensuring success of these start-ups.
Similarly, the top three companies in the Oil and Natural gas sector with annual profit of 33,835 crores can support 338 start-ups in the Clean tech sector with 1 crore investments in each start-ups.
List of Top 25 companies with their profits for FY 2016
So is it not a better time to be an entrepreneur? Start wearing the entrepreneur hat and build a world class product or Services Company.
Author: Shrihari Allangala writes on matters of investment, funding and startups. He is a Director of WiseLane Ventures Pvt Ltd.