Today’s Commitment (11 July 2026)
Today, I strengthened my market-sizing and business awareness skills.
Guesstimate Solved: Estimate the annual revenue generated by movie theatres in India.
Approach:
* Population of India ≈ 1.45 billion
* Assumed 60% of the population watches at least one movie in theatres annually.
* Average moviegoer watches 2 movies per year.
* Estimated total tickets sold = 1.74 billion.
* Assumed average ticket price = ₹180.
* Estimated annual box office revenue = approximately ₹31,300 crore.
Key Learning: This exercise reinforced the importance of breaking a problem into logical drivers—target customers, penetration rate, usage frequency, and average price. This structured approach can be applied to estimate the market size or revenue of almost any consumer-facing business.
Business News Learned Today:
1. Indian equity markets extended their rally, with Sensex gaining around 827 points, driven by banking stocks, IT, Reliance Industries, and positive global cues.
2. TCS reported strong Q1 FY27 results with an 8.5% year-on-year increase in net profit, highlighting the resilience of the Indian IT sector despite global uncertainty.
3. Reliance Industries announced plans to expand its domestic energy business by commencing exploration in its Sohagpur coal-bed methane block, reflecting its continued focus on strengthening India’s energy ecosystem.
Overall Reflection: Today’s learning improved my ability to approach ambiguous business problems using structured estimation while staying informed about major developments in financial markets, corporate performance, and strategic investments—skills that are essential for consulting and business decision-making. |
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Today, I strengthened my consulting skills by solving two guesstimates. The first involved estimating the daily revenue of The Times of India by breaking it into subscription, print advertising, and digital advertising revenues, arriving at an estimate of approximately ₹14.4 crore per day. The second focused on estimating India’s smartwatch market using a population segmentation approach based on geography, income, age, and adoption rates, resulting in an estimated annual market of around 1 crore units. I also stayed updated with today’s business developments: S&P warned that weak monsoon rains could affect rural demand and inflation, market experts highlighted leading stocks such as Bharti Airtel and HDFC Bank, and fuel prices remained stable across major cities. These exercises improved my structured thinking, market understanding, and business awareness. |
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Daily Commitment – 8 July 2026
1. Guesstimate Practice
Question: Estimate the number of cups of tea sold every day at IIM Kozhikode.
Approach & Solution:
* Students: ~1,300
* Faculty & Staff: ~400
* Total campus population: ~1,700
* Assume 80% consume tea daily = 1,360 people
* Average cups per person = 2 cups/day
* Total daily demand = 1,360 × 2 = 2,720 cups/day
Final Estimate: Approximately 2,700–2,800 cups of tea are sold every day on campus.
Learning: Break the problem into population × penetration × frequency instead of guessing a number directly.
2. Business News Analysis
News 1: Indian markets witnessed a sharp correction.
* Sensex fell around 1,677 points while Nifty declined over 2% amid renewed geopolitical tensions and rising crude oil prices. Investor sentiment weakened across sectors. (Business Standard)
* MBA Takeaway: Global macroeconomic events directly influence capital markets, investor confidence, sector performance, and portfolio risk.
News 2: IMF revised India’s FY27 GDP growth forecast.
* The IMF marginally reduced India’s FY27 growth projection to 6.4%, mainly due to higher energy prices, while maintaining confidence in India’s medium-term economic resilience. (Business Standard)
* MBA Takeaway: GDP forecasts affect business expansion plans, investment decisions, government policy, and corporate earnings expectations.
News 3: India is evaluating a ₹40,000 crore undersea power cable connecting India and the UAE.
* The project aims to strengthen cross-border electricity transmission under the “One Sun, One World, One Grid” initiative and improve regional energy security. (Business Standard)
* MBA Takeaway: Large infrastructure investments create long-term strategic advantages by improving energy security, enabling renewable integration, and strengthening international economic partnerships.
Key Learning for Today
Today’s learning reinforced three essential consulting skills:
1. Solve ambiguous problems using structured assumptions (guesstimates).
2. Connect macroeconomic events with business and financial markets.
3. Analyze how government policy and infrastructure investments shape long-term competitive advantage and economic growth. |
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Today, I strengthened my consulting and business acumen by solving two market-sizing (guesstimate) cases and analyzing key business developments.
1. Residential Electricity Consumption in Urban India
I learned a structured approach to estimate monthly residential electricity consumption by:
* Starting with India’s population and estimating the urban population.
* Converting population into households using average household size.
* Segmenting households into low-, middle-, and high-income groups.
* Estimating electricity consumption for each segment based on average monthly units.
* Aggregating segment-wise consumption to arrive at the total monthly residential electricity demand.
Key takeaway: Break large estimation problems into logical drivers—population → households → income segmentation → usage—to arrive at a realistic estimate.
2. Number of Umbrellas Sold in Mumbai
I practiced estimating annual umbrella sales by:
* Estimating the number of households in Mumbai.
* Segmenting households by income.
* Estimating the average number of umbrellas owned per household.
* Considering the average lifespan of umbrellas to calculate annual replacement demand.
* Summing demand across all income segments.
Key takeaway: Many consumer demand guesstimates can be solved using the simple framework:
Population → Households → Ownership → Replacement Cycle → Annual Demand.
Business News Reviewed Today
* India–EU Free Trade Agreement: India and the European Union are in the final legal review stage of their Free Trade Agreement, with both sides targeting implementation by early 2027. This agreement is expected to strengthen trade, investment, and market access for businesses.
* Indian Stock Market: Sensex and Nifty ended slightly lower after four consecutive sessions of gains as investors booked profits ahead of the earnings season. Foreign inflows and easing crude oil prices continue to support market sentiment.
* Trent Shares Decline: Retail giant Trent lost over $1.5 billion in market value after reporting slower-than-expected quarterly revenue growth, highlighting investor concerns about sustaining high growth amid rapid store expansion. |
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