The future of EV in India and other top stories of the week
This week, SMBStory talked about the future of electric vehicles (EVs) in India and featured the world's largest manufacturer of interdental brushes.
The demand for electric vehicles (EVs) is rising in India. According to data, the EV market is expected to grow at a CAGR (Compound Annual Growth Rate) of 94.4% from 2021 to 2030.
On the occasion of World EV Day on September 9, SMBStory spoke to Pratik Kamdar, Co-founder of , to talk about the future of electric vehicles in India and Neuron Energy’s role going forward.
Neuron Energy
India was not buying EVs until recently. Till about 2017, to most Indian consumers, EVs didn’t strike as a strong buy, says Pratik Kamdar, co-founder of Mumbai-based Neuron Energy Pvt Ltd. His company supplies lead-acid and lithium-ion powered batteries to electric vehicles.
This sentiment has changed, atleast in the last few years. Growing awareness about environmental issues, availability of subsidies and tax rebates on buying EVs has peaked consumer interest.
“When we started the business in 2018, there were 6,000 EV two-wheelers in India. Last year, there were six lakh EV two-wheelers running on the road and this year there are sales of around 15 lakh of these in the market. So, this means, we will see 50% conversion by 2030,” says Pratik, on the growing demand for EVs in India.
The EV market is expected to grow at a CAGR of 94.4% from 2021 to 2030. According to Pratik, the initiatives of the government to incentivise manufacturers and consumers adopting EVs, rising fuel prices, and stringent greenhouse gas (GHG) emission norms have also contributed to the growth of the EV sector.
STIM Oral Care
Amid growing awareness of the benefits of brushing twice a day, the toothbrush and replacement heads market in India grew at a CAGR of 8.76% between 2015-20.
One of the major contributors behind this growth is Global Dent Aids Pvt Ltd, the parent company of STIM Oral Care. Based out of Delhi, it has been making interdental brushes since 1988, and is one of the world’s largest manufacturers in that category, leading brands across 10 countries, including the UK and the US, as well as in Europe.
Started in 1965 by Late Vir Dev Khuller, Global Dent Aids initially operated as a trading company to sell oral toothbrushes in India. His son, Vineet Khuller, observed the evolving demand for interdental brushes—which have small bristled heads to clean between the teeth. Seizing the opportunity, he set up a factory in the early 90s and there has been no looking back since.
Speaking to SMBStory, Viren Khuller, the third-generation entrepreneur and Director of Global Dent Aids, talks about how the company has remained relevant despite low over-the-counter penetration, and steady competition from brands like Oral B and Colgate.
Other top picks of the week:
New-age lending models
According to international standards, credit card expansion in India is among the lowest in the world — at around 3%. Customers who don't have adequate credit can't afford medium and large ticket goods. Thus, they seek out simple and affordable financial services but frequently avoid using credit cards due to their high-interest rates, fees and other hidden costs.
On the other hand, new-age loan methods operate similarly and charge little to no interest. The expansion of ecommerce in India is a significant factor in the emergence of new-gen lending arrangements in the country.
A Deloitte analysis projects that new-age lending methods would own 11.4% of the Indian retail sector by 2026, up from its current 7% share.
Customers are increasingly using ecommerce as their primary method of shopping. In this context, no-cost EMIs and Buy Now Pay Later (BNPL) methods are quickly gaining universal acceptance as the preferred payment method and permanently altering how people shop.
Thanks to technology, the micro-credit lending concept has become increasingly popular worldwide, including in India. Customers have the choice of completing their purchases immediately but delaying the payment to the future by using no-cost EMIs and the BNPL plans.
How e-invoicing will change operations, GST compliance
Under e-invoicing, applicable businesses must report to the government to verify certain documents. The portal where validations happen is called the Invoice Registration Portal (IRP), such as the NIC and Clear. As a result, the government responds with a signed QR code and a unique Invoice Reference Number (IRN). The e-invoices get auto-filled in GSTR-1 of such businesses towards the end of the tax period.
Any failure to generate IRN attracts a penalty of up to Rs 25,000 per invoice for issuing an invoice incorrectly. If the business does not raise the required invoices, it shall have to pay a fine of Rs 10,000 per invoice not raised.
The IRP verifies documents such as tax invoices, credit notes, and debit notes raised towards transactions such as taxable business-to-business (B2B) and business-to-government (B2G) sales of goods or services, exports, and supplies made under the reverse charge mechanism.
The system does not apply to exempted supplies for which bill of supply is raised, job works, imports, delivery challans, and entities operating as banks and NBFCs, government departments, exhibiting films on multiplex screens, goods and passenger transportation agencies, and the Special Economic Zones (SEZ) units.
Edited by Kanishk Singh
