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198

Monday, August 21, 2023

Out-of-court deal ends Retail buyers dump LIC,

livemint.com Murugappa family feud uP1 Nykaa, others P1

Intel® Core™ i7 processor

HP EliteBook 840 14inch G10
Notebook PC (86T31PA#ACJ)
 Go from
'How can I secure a job?'

to
'How secure is the sector
I work in?'

In every answer lies the very next question. You only grow when you ask better
questions. Get answers and updates on the latest business news and its impact
on us, only with Mint
 NEW DELHI, MUMBAI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HyDERABAD, CHANDIGARH*, PUNE* VOL. 17 NO. 198

Monday, August 21, 2023

Think Ahead. Think Growth.

mint primer QUICK EDIT

All ears: Just how Rx: Meds

does AI ‘listen’ to for all
A row has erupted over the
your passwords? National Medical Commission’s
(NMC) directive making the
prescription of generic drugs
BY SHOUVIK DAS mandatory, with some doctors
A research paper has shown how a simple smartphone microphone protesting the move. Its aim is to
and linked recordings of users typing on keyboards can correctly make healthcare cheaper and
detect what they typed. In other words, algorithms can be used to steal improve its access, as generic
our passwords. Mint decodes how such hacks work. drugs are relatively inexpen-
sive. Dissenters argue it violates
the rights of patients on whose
behalf discernment must be
exercised since generics could
be of low quality. Although the
efficacy of the same formulation
from different makers can
indeed vary, generic medicines
must not be cast in general
doubt. India’s pharmaceutical
export success has largely been
with unbranded pills. Equally,
it’s known that doctors are
sometimes incentivized by
pharma firms to prescribe
branded drugs. So the NMC’s
approach makes sense. Generic
How big a threat are Which tech can enable drugs ought to be the first pick
1 acoustic attacks?
These attacks are not widespread.
2 such attacks?
At the core of such attacks is the
for doctors. But their medical
judgment must have sufficient
The method prescribed needs the ability of deep learning algorithms space to prevail, too. Where a
hacker to be within a few inches of to “learn” acoustic patterns from branded drug is felt necessary,
you, or be connected by video recordings, and then guess what is the doctor should explain to the
conferencing as you type your being typed from other patient in writing why this is so.
password. However, the recordings. This is unlike the If this becomes standard prac-
researchers could record a user’s threat posed by large language
tice, then it would push gener-
keystrokes on a laptop—in this models and generative AI. This
case, a commonly Apple MacBook threat is akin to “keylogger” ics with high rejection rates
—to guess what has been typed attacks—in which cyber criminals under scrutiny, which could
with up to 95% accuracy. Deep install malware on users’ devices, serve to improve quality across
learning algorithms, a subset of and use such malware to “log” the market.
artificial intelligence, makes this what users are typing. However,
possible by learning input data generative AI, according to
with high efficacy. Security experts, could benefit from such
experts say that with AI algorithms deep learning algorithms by virtue
becoming more accessible, such
attacks hold the potential of
of the larger data sets—and make
the subsequent deep learning
MINT METRIC
becoming a significant threat. algorithms even more accurate. by Bibek Debroy

A man from UP was no prude,

3 What can we do to prevent
such security breaches?
The authors of the paper said mixing up
A magic mirror to show people nude
letter cases in a word, or using a mix of
Is what he bought.
multiple incomplete words along with But not what he got,
numbers and symbols, could make it hard
for algorithms to predict passwords.
Duped by a scam rather crude.
Password rules, which ask to mix a set of
characters, could help. Other safeguards
include touchscreen typing in mute mode,
or playing a sound while typing. QUOTE OF THE DAY
The medicines manufactured in
Aren’t there bigger Are passwordless
4 threats from AI?
Generative AI poses a significantly
5 logins a solution?
One way to circumvent such a
India save lives—in the
Netherlands, in Europe and across
greater threat. Attackers use LLMs threat is passwordless logins. In the world... With the capacity and
and generative AI to create more May last year, Apple, Google and
convincing spear phishing Microsoft announced that they knowledge that India has in
campaigns. The greatest threat will collaborate with the global generic and specific drugs, we look
here lies in attackers using FIDO Alliance for using
publicly available data on users to passwordless logins in mainstream
forward to a more integrated
run highly personalized applications. These include the collaboration with India.
cyberattacks, which could cause a use of third-party authenticator
greater loss of personal data. Spear apps, or on-device biometric
phishing includes impersonating a authentication such as face and
person or company to either install fingerprint scans. Microsoft offers
malware or steal information. With passwordless logins to enterprise DR ERNST KUIpERS
HEALTH MINISTER,
generative AI, this presents an users, while Apple uses biometric THE NETHERLANDS
even bigger threat than what it is authentication for almost all
today. logins.

STO C K TA L K DOWNLOAD THE

MINT APP
DIVI’S LABORATORIES VINATI ORGANICS
We are downgrading Due to weakness in
Divi’s, given the chemical sector, we
pressure on its leg- have lowered
REDUCE SELL
acy generics’ APIs Vinati’s P/E multiple
TARGET PRICE TARGET PRICE
from pricing and from 35x to 33x.
₹3,120 market share satura-
₹1,625 Based on our revised
CURRENT PRICE CURRENT PRICE
₹3,653.40 tion, and turnaround ₹1,809.10 estimates, we down-
is contingent on grade the stock from
newer molecules, including sartans Buy to Sell with a revised target price
and contrast media. of ₹1,625 (earlier ₹2,190).
NUVAMA RESEARCH (ON 15 AUGUST) CENTRUM BROKING (ON 16 AUGUST)

JK CEMENT ITC
Ramp-up of JK Over FY23-25E, we SUBSCRIBE TO
Cement’s central are building a rela- OUR NEWSLETTER
India plant is quite tively subdued 11.6% TOP OF THE MORNING
BUy ADD
encouraging as it EPS CAGR led by
TARGET PRICE TARGET PRICE
₹3,600 achieved capacity
utilization of about
₹495 7.3% revenue CAGR.
But we now assign a
CURRENT PRICE CURRENT PRICE
₹3,078.40 75% with better prof- ₹441.90 higher multiple of
itability. Moderation ~26.5x for the
in fuel costs and operational effi- expected improvement in return
ciency will help improve profits. ratios, leading to a rating upgrade.
MOTILAL OSWAL (ON 16 AUGUST) YES SECURITIES (ON 15 AUGUST)

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
 PLAIN FACTS

Is India entering a chip

production red ocean?
BY howINdIAlIvES.com

T
he global semiconductor industry is prone to shortages and surpluses. Shortages drive capital investments. During such
phases, chip makers expand production capacity, leading to oversupply. Now, it’s a time of glut, but India is entering the
manufacturing fray with a $10-billion incentive package for the semiconductor industry. This raises the question if it
should get into the ‘red ocean’ of chip manufacturing, marked by intense competition, or if it should focus on chip design.
The oversupply is immense. Taiwan Semiconductor Manufacturing Co. Ltd, the world’s largest chip maker, reported a 23%
drop in June-quarter (Q2) sales and warned that sales would drop 10% for 2023. Consultancy Gartner projected an 11.2% decline
in revenues for the global industry in 2023 after a tepid 0.2% growth in 2022. “As economic headwinds persist, weak end-market
electronics demand is spreading from consumers to businesses, creating an uncertain investment environment,” it said this
April. The pain started when shortages during the pandemic turned into a glut last year, worsened by fears of economic slowdown.
Yet, the sector is drawing big investments. Earlier this month, the US said companies there had announced $166 billion in
investments in semiconductors and electronics in the one year since President Joe Biden signed off on a law that promotes the
sector. In June, US-based Intel Corp. said it would invest $33 billion in Germany to expand in Europe. The number of semicon-
ductor fabs processing 300-mm wafers globally is projected to jump from 138 in 2020 to 180 in 2023 and 233 in 2027. In this
ocean, India too wants a space.

Semiconductor fabs are set to

jump 30% since 2020
Number of semiconductor fabs
250
233

200
Global semiconductor revenues are
set to drop 11.2% in 2023
Revenue ($ billion) Growth (%)
26.3 150

18.5

100

0.2

-11.2 50

595 600 532 631

0
2008 2015 2023 2027
Data for semiconductor fabs using 300mm wafers.
2021 2022 2023 2024 Figures for 2023 to 2027 are projections.
Figures for 2023 and 2024 are projections. Source: Gartner Source: Global Wafer Capacity 2023, Knowmeta Research

Government Push Governments are vying to draw

semiconductor investments
GLOBAL COMPETITION to build chip manufacturing Incentives announced by governments for semiconductor
capacity is driven by governments. For example, the US industry in last two years ($ billion)
government’s CHIPS Act of 2022 provides $52 billion in funding
for semiconductor research and manufacturing. Last month, the 145
European Union approved its own Chips Act, a €43-billion
($47.5-billion) plan to develop more fabs, aimed at capturing “at
least” 20% of global market share by 2030.
China was working on a $145-billion support package for its
semiconductor industry, Reuters reported last December, and is 52 47
facilitating easier access to subsidies, according to FT earlier this
year. Similarly, South Korea, Japan and Taiwan offer tax credits,
subsidize set-up costs and provide other incentives to promote 10 9
1
semiconductor manufacturing. It’s driven by both economic China US EU India Japan UK
reasons (like creation of jobs) and geopolitical reasons (ongoing Japan's numbers are commitments to four companies.
rivalry between the US and China). These twin forces are driving China's numbers based on news reports.
investments, despite the drop in revenues and excess inventory. Source: Announcements by countries, media reports

The US got the biggest chip

investments in 2021 and 2022
Shifting Balance
Investments announced in 2021 and 2022 ($ billion) THERE’S BEEN an imbalance in the global semiconductor
US 165.5 industry since it entails huge upfront investments. Many of these
Germany 26.1 investments happened in South-East Asian countries and China.
China 22.8 For example, while the US accounts for 34% of global demand for
India 22.5 semiconductors, it accounts for only 14% of supply, according to
Ireland 11.8 McKinsey. More than half of US-owned fab capacity is located
Japan 10 outside the US, according to Knowmeta Research. Japan, on the
South Korea 10.6 other hand, accounts for 16% of supply and 8% of demand.
Malaysia 9.3 Taiwan, the world’s top supplier, accounts for only 1% of demand.
Singapore 9
The recent push by governments to manufacture locally is
France 5.7
Italy 5.1 expected to shift that balance, as well as increase supply once new
Taiwan 3.5 capacities start producing. While it would ensure a steady supply
Vietnam 1.1 of chips in the future, it has also raised concerns about a near-
UK 0.1 term talent shortage and price wars. If prices drop significantly, it
Amounts are likely to be understated due to non-disclosure by companies. could impair assumptions behind the returns on ongoing
Source: Semiengineering, 2022 investments. However, demand could outweigh these concerns.

Demand Drivers Communications and computers

account for 56% of chip demand
COMMUNICATIONS AND computers accounted for 56% of Share in 2022 sales, global (%)
chip sales and automotive sector 14% in 2022, according to the
Semiconductor Industry Association (SIA). McKinsey projects a Government
tripling of demand from the automotive sector by 2030, fuelled by
2
applications like autonomous driving and e-mobility. Increasingly, Automotive 14
consumer demand for laptops and phones is driven by emerging Communications
30
markets, including those in Asia, Latin America, and Africa, SIA
said. According to a 2022 McKinsey report, the global chip Consumer 14
industry could grow at 6-8% till 2030, reaching $1 trillion in size.
While chip making is becoming a red ocean, which is captured by
the term ‘chip wars’ to describe the rivalry between China and the Industrial 14
West, the market promises to get bigger. Thus, while India might 26 PC/Computer
be betting on the right sector, the key is whether it can turn the
intentions and sops into operational factories without glitches. Total global semiconductor market in 2022 was $574 billion. Military
end-use is included in government.
www.howindialives.com is a database and search engine for
Source: Semiconductor Industry Association Factbook 2023
public data.
PARAS JAIN/MINT

PEANUTS by Charles M. Schulz

 New DelhI, MuMBAI, BENGALuRu, kOLkATA, cHENNAI, AHMEDABAD, HYDERABAD, cHANDIGARH*, PuNE* VOL. 17 NO. 198 Rs. 10.00 . Price with Hindustan Times Rs. 15.50 18 PAGES

Monday, August 21, 2023

Can beaten Xiaomi reclaim After vegetables, prices of

livemint.com its crown? uP10 poultry set to rise uP2

Out-of-court deal ends

Murugappa family feud
Valli Arunachalam alleged gender bias after group denied her board seat
Priyanka Gawande suits following the settlement
[email protected]
MuMBAI
CONflICT reSOlveD may potentially usher in an
era of stability for the diversi-
The withdrawal of the lawsuits following the settlement may
fied group.

T
potentially usher in an era of stability for the diversified group.
hree years after “Though the disclosure
Valli Arunachalam, In 2017, M.V. Murugappan, the founder of Murugappa does not mention any specific
Group, passes away
a New York-based change in rights or restric-
HE NAMED only his wife and daughters, Valli
nuclear scientist Arunachalam and Vellachi Murugappan, in the will tions, the development is wel-
and daughter of ARUNACHALAM DEMANDS a non-executive board
come from an investor per-
former Murugappa Group berth in the group's holding firm Ambadi Investments spective that disputes
chairman M.V. Murugappan, IN 2019, Ambadi Investments, controlled by the male between family members are
levelled gender discrimina- family members, rejects her appointment on the board settled and will definitely give
tion allegations against the IN 2020, Arunachalam sends a legal notice to a feeling of stability,” said
boards of the group’s firms, Murugappa Group and Ambadi Investments, Makarand Joshi, the founder
the estranged family mem- alleging gender discrimination Valli Arunachalam of MMJC and Associates, a
bers reached an out-of-court corporate compliance firm.
settlement, the terms of THE WAY AHEAD To be sure, Murugappa
which remained undisclosed. The group All transactions AND all legal group stocks have well out-
After Murugappan’s announced the will be completed proceedings performed the benchmarks
demise in 2017, a bitter dis- truce on Sunday within 90 days will be withdrawn despite the feud. The stock
pute erupted among family price of group firm Carborun-
members of the group’s pro- dum Universal Ltd jumped
moters as Murugappan had informally assured by family misogynistic nature of the nearly fivefold from ₹219.6 on
named only his wife and members of the board posi- shareholders, Arunachalam 31 March 2020 to ₹1,089 on 18
daughters in his will, and tion, when it came to a formal sent a legal notice to Muru- August; shares of Cholaman-
Arunachalam demanded a approval, Ambadi Invest- gappa Group in October dalam Investment and
non-executive board berth in ments, controlled by the fam- 2020, dragging them to the Finance Co. Ltd surged nearly
the group’s holding firm ily members, rejected her company law tribunal and seven times from ₹152.95 to
Ambadi Investments Ltd as appointment on the board by stating that the male mem- ₹1,016.65; Cholamandalam
natural succession to her passing a 91% vote against the bers of her family “cannot Financial Holdings Ltd’s
father’s board position. proposal in an annual general tolerate women in their shares tripled from ₹290.05
Even though Arunachalam, meeting. boardrooms”.
after her father’s death, was Upset with the allegedly The withdrawal of the law- TURN TO PAGE 6

DON’T MISS
SBI eyes Mumbai flats for execs India urged to resume rice exports Bulk deals rise with soaring mkt
State Bank of India (SBI) is looking to buy 60 Singapore, Indonesia and the Philippines, Bulk share sales have hit a record $11 billion
apartments in upmarket south Mumbai for key diplomatic partners of India, have during FY24 as promoters and large public
₹500 crore to house executives. It has called appealed to New Delhi to resume rice investors cashed in on a buoyant market
for applications from architects. >P7 exports to their nations. >P2 fuelled by nimble earnings growth. >P6

Retail buyers dump IDBI divestment

LIC, Nykaa, others unlikely this fiscal
Anirudh Laskar Rhik Kundu & Gulveen Aulakh
[email protected] NEW DELHI
MuMBAI

T
he proposed sale of the

A
clutch of companies government’s stake in
that eroded billions in IDBI Bank is unlikely to
shareholder wealth happen this fiscal, two people
since their public listing has with direct knowledge of the
seen an exodus of retail share- matter said, posing a challenge
holders, a Mint analysis of to the Centre’s ability to meet
exchange data showed. the ₹51,000 crore disinvest-
At least 2.2 million retail ment target for the year.
shareholders, 73 large foreign The government’s earlier
institutional investors (FIIs), At least 441 firms got listed in plan involved issuing financial The Centre expected to raise
and 22 mutual funds sold the past five years. HT bids for IDBI Bank by Decem- more than ₹15,000 crore from
shares of 12 large companies, ber and completing the trans- the IDBI Bank stake sale. MINT
including Nykaa (FSN E-Com- “While the erosion in inves- action in the fourth quarter of
merce Ventures Ltd), Life tor wealth somewhat indicates the fiscal. The government dividends from the Reserve
Insurance Corporation (LIC) of unfair IPO pricing, with their expected more than ₹15,000 Bank of India (RBI) and state-
India and Paytm (One 97 Com- money stuck in such large lis- crore from the IDBI Bank stake run banks, to offset any reve-
munications Ltd), since their tings, millions of public inves- sale, the financial due diligence nue shortfall from disinvest-
initial public offerings. The tors, especially retail, are now for which began in July. ment and maintain the fiscal
companies have seen com- desperately waiting to exit and However, despite the delay, deficit target of 5.9% of gross
bined investor losses of $80 the government expects higher
billion during the period. TURN TO PAGE 6 non-tax revenues, including TURN TO PAGE 6

Streaming smells blood in shark waters

Lata Jha added. While the target audi-
[email protected] ence remains young, ranging
NEW DELHI from people in their 20s to
40s, families, too, have taken

T
he success of Shark to the show in a big way. How-
Tank India on SonyLIV ever, given that the show is an
has triggered a rush for adaptation of an international
business reality shows by format, the team has to do a
other streaming services as rigorous job of due diligence
well, centred around small- and is strict in vetting those
town entrepreneurship and who apply, Mukherjee said.
the concept of startups. The surge in startups across
Telugu over-the-top (OTT) India enabled by the rise of
service Aha has floated Nenu technology professionals and
Super Woman for female entre- venture capital funds may
preneurs, while Amazon Prime SonyLIV debuted Shark Tank in India, a franchise of the have been missed out in some
has launched a series called American reality show, in December 2021. parts of middle India, said Vai-
Mission Start Ab. Industry exec- bhav Modi, founder-director
utives say these shows target show, in December 2021. Mukherjee, head of content, at Victor Tango Entertain-
the aspirational, new-age India “Shark Tank India has been SonyLIV. ment, which is in the process
looking to explore unconven- a very successful franchise for Business reality shows like of developing a slate of busi-
tional career choices and find us and also an interesting jour- these have thrown up oppor- ness reality shows.
resonance across demograph- ney to see how it has reached tunities for small-town entre- “These shows capture that
ics, including families. out to audiences, beyond met- preneurs who may not belong latent gap and empower peo-
SonyLIV, the video stream- ros Delhi, Mumbai and Guru- to English-speaking India, ple who may not have gone to
ing platform from Sony Pic- gram, in tier-2 and -3 towns weren’t born with silver premier management or engi-
tures Networks India, debuted and become so accessible to spoons, and haven’t gone to neering colleges, although
Shark Tank in India, a fran- not just young techies but also, B-schools but have aspirations
chise of the American reality say, housewives,” said Saugata to make it big, Mukherjee TURN TO PAGE 6
02 MoNDAy, 21 August 2023
New Delhi ECONOMY & POLICY LIVEMINT.COM

STRAIGHT
F O R WA R D
After UN body, 3 nations ask Govt to sell
subsidized
SHASHI SHEKHAR

Respond to this column at

[email protected]
India to resume rice exports onions at
₹25 per kg
VALLEY’S PRIORITIES India has taken various measures, including export curbs, to control escalating food prices
Puja Das
[email protected]
NEW DELHI

HAVE CHANGED IN
A
fter tomato, the Centre
Shashank Mattoo & Puja Das ken rice. through its nodal

RIGHT DIRECTION NEW DELHI “To ensure adequate availability of

non-basmati white rice in the Indian
agency the National
Cooperative Consumers’ Fed-

S
ingapore, Indonesia and the market and to allay the rise in prices in eration of India (NCCF) will sell
Philippines, key diplomatic the domestic market, the government of onions at a subsidized price of

O
n 5 August, at the break of dawn, as I left my lodging in partners of India, have appealed India has amended the export policy of ₹25 per kg through retail out-
Kashmir, I thought there couldn’t be a better day to grasp to New Delhi to resume rice the above variety from ‘free with export lets and mobile vans from Mon-
the ground situation there. It was the same day four years exports to their nations follow- duty of 20%’ to ‘prohibited’ with imme- day, fearing prices may touch
prior that Article 370 was repealed. I was a bit worried, though, ing India’s decision to suspend non-bas- diate effect,” the government triple digits ahead of the festival
given the history of protests and terrorist attacks in the region. mati shipments to check prices. announced in July. season.
But these fears dissipated in a few minutes when I saw numer- Singapore has requested around “But there is no change in the export Unseasonal rains in Maha-
ous people—several of them young women—going on morning 110,000 tonnes of rice from India. In policy of non-basmati rice (parboiled rashtra and Karnataka in April
walks along the banks of the Dal Lake. Many people were riding June, Indonesia announced plans to rice) and basmati rice, which form the caused high moisture content
bicycles, and there were youngsters practising long-distance import 1 million tonnes (mt) of rice from bulk of rice exports. This will ensure that in the stored Rabi crop, reduc-
running with the aim to take part in recruitment to the armed for- India to protect against disruptions the farmers continue to get the benefit ing the shelf life of the kitchen
ces. caused by the El Nino weather pattern. of remunerative prices in the interna- staple. This sparked fears of
It was half past seven when I arrived in Sonamarg. The Amar- The Philippines also relies on India for tional market,” read a press release by supply tightening by Septem-
nath yatris had started on their way up to the cave shrine by then. rice supplies. the ministry of consumer affairs, food ber. All-India retail onion pri-
The Central Reserve Police Force personnel gently queried the Recently, the UN World Food Pro- India suspended non-basmati white rice exports on 20 July. ISTOCK and public distribution. ces rose to ₹30 a kg on Sunday
purpose of our visit before letting us through to the helipad. The gramme sought 200,000 tonnes of Food and beverages inflation, as from ₹20 at the beginning of
tents set up by various departments to offer services to pilgrims Indian rice for its humanitarian opera- a third term in office. over 30 countries. In 2022, India measured by the Consumer Food Price the year, according to the con-
such as ambulance, fire and rescue, and civil defence were visible tions amid what it called “catastrophic Queries mailed to the Singapore high accounted for approximately 40% of Index, which accounts for 45.86% of the sumer affairs department’s
from the courtyard. There was also a mobile ATM. In about two levels” of global food insecurity, trig- commission in New Delhi, the embas- Singapore’s rice imports. Only the overall consumer price basket (CPI), price monitoring division.
minutes a helicopter from Panchtarni hovered down and landed. gered by the covid-19 pandemic and the sies of Indonesia and the Philippines, import of non-basmati rice is affected by rose to 10.57% in July against 4.63% Prices at Lasalgaon, Maha-
The five-passenger chopper took off soon after we boarded it. It Ukraine war, two people aware of the and India’s department of food and pub- the ban. The import of non-basmati rice (revised) in the preceding month. In the rashtra, the hub of India’s onion
was amazing to see the stream of pedestrian pilgrims going up development said. Bangladesh is lic distribution remained unan- from India makes up approxi- case of cereals and products, trade, rose by 50% to ₹2,050 a
and down the path to Baltal from the sky. also in talks with India for swered. The Singapore Food mately 17% of Singapore’s retail inflation quickened to quintal on Saturday from
Soon we landed at Panchtarni, and in minutes the chopper supplies of some agricul- Agency (SFA) recently rice import,” it added. 13.04% in July from 12.65% ₹1,370 on 2 August. Prices were
took off with another set of passengers back to Sonamarg. The
chopper brought to mind bus services such as those in Allahabad
tural commodities,
including rice.
Share of India
45% announced that it was in India is the world’s big-
talks with India for the gest rice exporter,
cereal inflation in
in June.
Economists predict 13.04% around ₹950 a quintal two
months ago.
and Banaras. Buses would halt at a stop, some passengers would Amid a surge in retail resumption of rice accounting for about 45% that the food price surge is The department of con-
disembark and another set would board, and they will move on. inflation to a 15-month in global exports. “SFA is working of the global rice trade. July, from likely to persist for the sumer affairs on Sunday
The choppers were plying back and forth with barely any break. high, India has taken vari- rice trade closely with importers to The 20 July-move to curb 12.65% in June next few weeks, which will directed the NCCF and the
And I had seen such crude helipads as they operate from only in ous measures, including increase the import of dif- exports of non-basmati likely keep the CPI inflation National Agricultural Coopera-
African countries. export curbs, to control esca- ferent varieties of rice from white rice has put pressure on elevated till the third quarter tive Marketing Federation of
Now a 6-kilometre trek through highly rugged terrain lay lating food prices. In his Inde- various sources. Singapore is also rice prices in global markets. of the current fiscal and expect the India (NAFED) to procure an
before us. The journey to the sacred Amarnath cave was chal- pendence Day speech to the nation, in close contact with the Indian authori- Neighbouring countries, including headline CPI inflation to stay above the additional 100,000 tonnes of
lenging, but not unpleasant. Baba Barfani had melted, but in Hin- Prime Minister Narendra Modi pledged ties to seek exemption from the ban,” Bangladesh and Nepal, are heavily 6.5% mark in August, before cooling off onions each. This will take up
duism, even the spot where an object of reverence stood is to bring down inflation as he readies to read a press release from the agency. dependent on Indian rice, while some in September. the onion buffer stock to
equally sacred. fight general elections, due by May, for “We diversify and import rice from African countries are purchasers of bro- [email protected] 500,000 tonnes.
On our way back, we passed the Kangan police academy. Three
young women in white T-shirts and
For the first khaki trousers stood outside. Their
time, we have
reason to
attire indicated that they were recruits.
They had the appearance of valley resi-
dents. Are women from rural areas
‘Need incentives for End of diet curbs may fuel poultry price
believe that
Kashmir will
also progress
willing to wear police uniforms now?
In this the same Kashmir where I had
seen widespread hostility towards
R&D on battery tech’ Puja Das
[email protected]
ually eased off in July due to a
change in eating habit and less
those wearing khaki uniforms? NEW DELHI demand from North and West
This was my third trip here in as Staff writer government incentives, which India during Shravan,” said farm

P
many years. Each time, I have seen an increase in the valley’s con- [email protected] would help cut the cost of oultry products including commodity analyst Indrajit Paul.
fidence. They have begun publicly stating that we have suffered NEW DELHI ownership of high-perform- eggs and chicken are “Additionally, prices rose but
greatly as a result of terrorism. For the first time, we have reason ance advanced vehicles and expected to see a sharp marginally in sync with raw

T
to believe that Kashmir will also progress. Dhabas, hotels on he government should give a push to the segment. rise in sales and, consequently, material costs.”
motorways and commercial construction on practically every give incentives for Vipin Sondhi, Chairperson, prices starting September—fol- Wholesale prices of maize
route in Srinagar attest to this. Every year, the number of tourists research and develop- CII National Committee on lowing the two-month-long shot up to ₹ 1,935-2,100 per
surpasses the previous year’s record. A businessman who owns ment projects on advanced Future Mobility (2022-23) Shravan restrictions. quintal during June-August
a large handicraft company said that in the last three years, he had battery technology, said a CII said: “Challenges include Hindus in parts of northern from ₹ 1,800-1,900 during
built relationships with people from every state in the “country”. report on Sunday. building domestic supply and western India follow die- April-May in Bihar and Madhya
This relationship of one Indian to another Indian breaks the sep- The report on battery man- chain capabilities to make the tary restrictions during the Pradesh after touching ₹ 2,400
aratists’ spirits. This is the same city where people used to ask ufacturing and its ecosystem electric vehicles more afforda- Shravan period. Sales dipped a quintal in March.
whether you were from India. released by the Confederation ble, establishing charging net- by 15-20% in North and West This current rise in prices is
This year Lieutenant Governor Manoj Sinha granted permis- of Indian Industry (CII), sug- works to mitigate range anxi- India during July and August. Poultry sales decline in northern and western India during the attributed to dry or inclement
sion for the Muharram procession after 33 years, and people par- gested that ety in consumers “Shravan month generally Shravan period when many Hindus follow dietary curbs. MINT weather conditions so far in the
ticipated in the procession in large numbers. Even the LG himself incentives be CII has suggested and creating a tal- indicates 15-20% lower sales. four-month monsoon season
took part in the procession. His dhoti-kurta, tilak, and thick braid given from a ded- that incentives be ent pool that can This year, the effect will be multi- 125 at present,” said Tarun Sat- up in tandem with chicken pri- ending September, among oth-
are no longer unacceptable to anyone. Though Muharram was icated fund for given from a participate in the plying because it is being sangi, global commodity ces. While egg is available at ers.
long past by the time we arrived, black Muharram flags were still the development dedicated fund enormous task of observed for two months,” said research specialist with Sil- ₹426-501 per 100 pieces in Soybean prices are either
flying in the Hazratbal neighbourhood. of the battery developing inno- Nishant Lakkar, founder at AAA kroute.ag. Bengaluru, Kolkata, Delhi and stable or have been falling since
In the same vein, on 13 and 15 August, too, thousands thronged,
for the
technology eco- vative technolo- Rating Consultants and Advisors. “This is because of a substan- Mumbai, the average price of February. Maize and soybean
tricolour in hand to celebrate Independence Day, much-exceed- system. development of gies and manu- “As soon as Shravan gets tial demand is chicken at the are major feed for animals
ing expectations. In this same city, I had seen people waving Paki- “The govern- battery tech facturing infra- over, the industry is expected to anticipated in Poultry sales farm gate is including poultry. Rahul Guha,
stani flags and shouting “Pakistan zindabad” earlier. ment may con- structure that are witness a strong rebound in September from dipped around ₹118-121 a director CRISIL Ratings Ltd
Is this to say that everything is fine? Definitely not. The fight sider providing relevant to our terms of sales, and it is likely to people who fall by 15-20% kg in Bengaluru, sees sluggish demand again in
is still on. Three of our soldiers were ambushed in Kulgam on the incentives for R&D pro- unique needs.“ grow more than 10% year-on- under low-and- in North and Kolkata and Delhi. October and November as
day we arrived. Terrorists from across the border are not yet fin- grammes focused on advanced The former CEO & MD, year in September alone.” marginal-in- “Prices of North and West India celebrate
ished. A senior police officer said there used to be more than 100
West India
battery technology research in Ashok Leyland and JCB, said Since mid-June, poultry pri- come group amid chicken and eggs Ganesh Chaturthi and Navratri.
foreign terrorists in the valley, but that number has now dropped the central research agencies stakeholders in the battery ces have been on the rise due to soaring vegetable during July and shot up in April- “However, in other pockets,
to between 40 and 45 thanks to joint operations by the forces. and academic institutions value chain are working to a combination of factors, prices and as August June because of demand and prices will firm
The officer said those who remain will be eliminated in due across the country,” it said. come up with innovations to including logistics and higher prospects of extreme heat- up.” Queries sent to the agri-
course. Terrorism is nearly everywhere these days, and no coun- CII also suggested that the offer longer driving range, raw material costs, according to kharif crops— waves in some culture and farmers welfare,
try or region is safe, but it is obvious that the people of the valley cost-differential between the faster charging and improving industry experts. “Broiler maize and soybean—remain pockets of the country causing consumer affairs, and statistics
have set their priorities afresh and are advancing towards these. advanced battery technology safety of the vehicle and at the chicken prices at the farmgate of poor amid deficient rainfall in higher mortality in chicken, and programme implementa-
Shashi Shekhar is editor-in-chief, Hindustan. Views are per- vehicles and conventional same time reducing the cost of Delhi’s Gazipur are expected to August, raising yield concerns.” weighing on production and tion ministries remained unan-
sonal. vehicles should be bridged by buying an EV. touch ₹150-160 a kg from ₹120- Egg prices are expected to go consequently supply. This grad- swered at press time.

Govt’s electric mobility push may focus on public transport, charging CORRECTIONS AND
CLARIFICATIONS
Mint welcomes comments,
Rituraj Baruah & should go for public transport Another 753,140 two-wheel- tions by 10,000 e-buses on a “We would suggest that suggestions or complaints
Subhash Narayan and charging infrastructure,” ers, 85,168 three-wheelers and PPP model. assistance under FAME about errors.
the person added. 9,270 four-wheelers have sold The scheme has an esti- scheme is given to more sec-
Readers can alert the
NEW DELHI The proposal comes at a under the scheme, according mated cost of ₹57,613 crore, tors including trucks, heavy
newsroom to any errors in the
time EVs have by and large to data presented by Krishan out of which a support of duty vehicles, farm tractors paper by emailing us, with your

T
he Centre is considering penetrated the two-wheeler Pal Gurjar, in the union minis- ₹20,000 crore will be pro- and off-roading vehicles. Fur- full name and address to
shifting its financial segment, while electric buses ter of state for heavy indus- vided by the government. ther, private fleets of buses can [email protected].
assistance for adoption are yet to gain momentum. tries, Parliament. Mint earlier reported that also brought under the ambit
of electric vehicles (EVs) The ongoing FAME II Data from the ministry allocation for FAME III may of FAME as currently buses of It is our policy to promptly
respond to all complaints.
toward public transport such scheme was started on 1 April showed that in FY23, only jump to around ₹30,000 crore state transport undertakings Readers dissatisfied with the
as e-buses. 2019, with budgetary support 1.88% of buses sold in the from ₹10,000 crore ear- only are supported. There is a response or concerned about
The support for purchase of of ₹ 10,000 crore. This phase country were EVs. marked for the current FAME need to broaden the benefici- Mint’s journalistic integrity may
private electric two-wheelers focuses on supporting electri- EVs have by and large penetrated the two-wheeler segment, In May, the ministry II scheme. The scheme is ary base adding more vehicle write directly to the editor by
may be gradually phased out, fication of public and shared while electric buses are yet to gain momentum.. BLOOMBERG increased the funding support expected to increase incen- segments,” said Rahul Wala- sending an email to
said a person in the know of transportation and aims to for e-buses to ₹4,307 crore tives for e-buses. walkar, President, Indian [email protected]
the developments. support 7,090 buses, 500,000 creation of charging infra- ministry of heavy industries from the budgeted ₹3,545 Amid consultations indus- Energy Storage Alliance. Mint’s journalistic Code of
“There is a view that the three-wheelers, 55,000 pas- structure. The scheme has had sanctioned 6,315 electric crore. Further, the union cabi- try stakeholders have sug- Queries sent to the ministry Conduct that governs our
subsidies should gradually be senger cars and 1 million two- been extended till March buses for 65 cities, state trans- net last week approved a bus gested bringing in more sec- of heavy industries remained newsroom is available at
phased out for private two- wheelers through demand 2024. port units or state govern- scheme, the PM-eBus Sewa, tors under the subsidy scheme unanswered till press time. www.livemint.com
wheelers and assistance incentivization along with the As of 1 August 2023, the ments intracity operations. for augmenting city bus opera- including private bus fleets. [email protected]

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First published in February 2007 to serve as an unbiased and clear-minded chronicler of the Indian Dream.
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LIVEMINT.COM DEALS, TECH & STARTUPS MoNDAy, 21 August 2023
New Delhi 03

m THE MONDAY QUIZ

1) WhAt is the fresh 2) WhERE did Wipro
ICICI Venture hits final close FIR in fraud
case on 4B
of fifth PE fund at ₹3,000 cr
outlay for Digital India establish its generative
that the Centre
announced last week?
artificial intelligence (AI)
centre of excellence?
Networks’
3) WhICh IT major announced a $1.6 billion deal with Yadav, Saini
communications platform Liberty, last week?
PTI
4) Who was 5) WhICh company is [email protected]
announced as the reported to have started India Advantage Fund Series V capital raise includes green shoe option of ₹500 crore MuMBAI
next chief executive manufacturing upcoming

T
of PayPal? iPhones in India? he Mumbai Police’s Eco-
Priyal Mahtta nomic Offences Wing
[email protected] (EOW) has lodged an
BENGALuru FIR against 4B Networks Pvt.
GLOSSARY Ltd’s senior officials Rahul

I
CICI Venture, which had launched Yadav and Sanjay Saini for
its fifth private equity fund in 2021- allegedly cheating an advertis-
Privilege escalation bug: and ethical boundaries. 2022, has concluded the fundrais- ing firm of more than ₹10
A form of software vulnera- ing utilizing the green shoe option, crore, a police official said on
bilities, privilege escalation Perpetual futures: A form according to information obtained Sunday.
bugs refer to flaws that fail of investment medium akin by VCCircle. The complainant in the case
to restrict access to critical to futures in the equity mar- The alternative investment arm of is Rajasthan-based Vikas Om
storage and memory sec- ket, perpetual futures in the ICICI Bank, which has backed firms Prakas Noval, a director of Int-
tions of a device — thus giv- crypto market refer to con- such as Theobroma Foods, and Bharat erspace Communication Pvt
ing hackers access to either tracts in which investors Biotech, has raised nearly ₹3,000 crore Ltd, the EOW official said. 4B
controlling the device’s can speculatively project ($362 million) for the India Advantage Networks is a prop-tech com-
behaviour, or stealing sensi- the potential price of a Fund Series V, including a green shoe pany with a platform that facil-
tive information. Typically, crypto commodity, such as of ₹500 crore, said a person privy to the itates, enables and empowers
every software include Bitcoin and Ether tokens. development. brokers and developers.
restrictions to which com- However, unlike traditional This is now its largest rupee-denom- In his statement to the
mands and applications can futures, perpetual futures inated PE fund. Although it had an ini- police, Noval alleged that
access certain core sections do not have a specific time- tial plan for a higher corpus for its sec- Yadav’s firm cheated them of
of it — a privilege escalation line for the contract to be ond fund, it was later adjusted to a more than ₹10 crore for the
bug ends up failing to executed, or completed. lower level. work they did for 4B Networks
enforce such restrictions. ICICI Venture set in 2022.
CAC: Customer acquisition out to raise ₹2,500 Besides PE, ICICI Venture manages three real estate funds with an AUM of $700 million. MINT From February 2022 to
cost (CAC) is a marketing crore, along with a September 2022, 4B Networks
metric, which refers to the green shoe option of ₹500 crore. In investors like British International million co-investment from a few select Allied Insurance and Krishna Institute offered installation printing,
total amount of expenses March 2022, VCCircle first reported Investment, OP Finnfund Global large investors. of Medical Sciences or KIMS Hospitals. hoardings, display and other
incurred by a company in that it was looking to raise a fund with a Impact Fund I, Omidyar Network The PE major has invested in over 60 In an earlier interaction Puneet advertising-related services,
acquiring new customers target corpus of $350-400 million. India, Flourish Ventures and CX Part- companies across all five funds. Some Nanda, CEO and MD, ICICI Venture, and a total of 83 advertisement
for a product or service. In During the course of the last one year ners, too, participated. of its portfolio companies include Go said the private asset manager will hoardings were put up by
growth-focused startups, the India Advantage Fund Series V has Set up in 1988, ICICI Venture mana- Fashions India, Theobroma Foods, launch an early-stage fund, diversify- Noval’s company in different
CAC typically includes deals made three interim closes. Over the ing its PE operation towards ven- places in Pune city from April
Responsible AI: A field and discounts offered by the next few months, the fund, which buIldIng foundAtIons ture capital. Last year, VCCircle had to August last year.
that includes numerous startup in order to attract a seeks to make 10 investments over reported that the homegrown pri- Later, Noval’s firm sent
sub-sections, responsible customer, and can therefore three years, may announce its third thIs is its largest In the course of the In the next few ICICI Ventures put vate equity firm was in talks to raise invoices for payments, out of
AI is a wide set of principles add up to become a sizeable funding initiative for this vehicle. rupee-denominated
PE fund, though the
last year, the India
Advantage Fund
months, the fund
may start its third
₹360 crore into
consumer
multiple funds in a bid to diversify which Yadav’s company clea-
that involve understanding chunk of expenses that are So far, it has backed two compa- initial plan was for a Series V has made 3 funding initiative for houseware firm its investments and focus on tech- red a few, but later failed to do
results produced by AI deducted from a company’s nies. In its maiden bet, ICICI Ven- higher corpus interim closes this vehicle Cello World nology-led start-ups and new-age so, the complainant alleged.
tools and algorithms, and revenue, in order to calcu- tures invested about ₹360 crore, or companies. Hence, Noval approached the
operating them within legal late net incomes. $44.3 million as per exchange rate Besides PE, ICICI Venture man- police and lodged a complaint
at the time, in consumer houseware ges five funds. Its private equity assets Metropolis Health Services, Bharat ages three real estate funds with an with the EOW.
company Cello World. This was family- under management stands at $1.85 bil- Biotech and Epack Durable. AUM of $700 million. Its latest fund is The FIR was registered aga-
5) Foxconn run business’ first PE fundraising. lion across India Advantage Fund (IAF) The Mumbai-based PE has initiated a $100 million affordable housing debt inst 4B Networks’ director
1) ₹14,903 crore 2) IIT Delhi 3) Infosys 4) Alex Chriss Subsequently, it led a Series E fund- Series I, II, III, IV and V. exits from the IAF-4 including a 6-fold fund. The company will also look at Yadav, founding member
THE MONDAY QUIZ ANSWERS: ing round of $35 million (₹290 crore) in The IAF-IV fundraising was closed at return made in part exit from its four- scaling the real estate business to raise Saini and their firm at Amboli
technology-based small businesses fin- $250 million (about ₹1,900 crore) in year-old bet in Chennai-based Go another affordable housing fund, police station under relevant
ancier Indifi Technologies. Existing September 2017, in addition to a $100 Fashion India Pvt Ltd, Star Health and which is still a work in progress. Indian Penal Code sections.

Filter Capital’s maiden PE fund Springwel eyes Sleepycat stake Companies raised $174 mn last week
Deal value ($ mn) Investors

to make final close at ₹1k crore Debjyoti Roy

[email protected]
a premium range of comfort
mattresses and other bedroom
72
GMM
Pfaudler Ltd
 Chryscapital
0.3
Plus
NEW DELhI products, including comfort- 80  WFC,
Aman Rawat Share Networks,,and Asia-fo- ers, pillows and beds. DynamoFL
EvolveX
Dr Agarwal's

S
[email protected] cused healthcare enterprise pringwel Mattresses Pvt. The brand has forayed into  Nexus Venture  Temasek, TPG
Partners, Canapi 0.5
Growth Aretto
NEW DELhI SaaS company THB. Ltd is considering pick- the pet bedding category with Ventures
15.1  HNIs
“Considering our PE mind- ing up a majority stake in its orthopedic bed offerings.

G
rowth stage-focussed set, we are more likely to invest a new-age firm within its cate- In FY22, it reported sales of Contiinex 2 0.5
 Yournext Teleport
investment firm Filter in proven categories, such as gory, which is backed by two ₹41 crore, up from ₹22 crore a  HNIs
Capital, which was set technology services, software, venture capital funds focused year ago, but losses grew from 1.1 0.5
Note: Graphic only Vegapay Snax Games
up by a former top executive of and technology-enabled B2B on early-stage deals, according 5.2 crore to 12.5 crore during includes major deals  Eximus Ventures  HNIs
Warburg Pincus five years ago, services such as logistics,” said to two people in the know. the period. Source: VCCEdge, VCCircle, Media Reports
is looking at the final close of Nayar. In consumer tech seg- The company specialising In fact, the startup posted a
SARVESH KUMAR SHARMA/MINT
its maiden fund by 2023 end, a ment, Filter Capital is inter- in sleep solutions is engaged in profit in FY19 before slipping
top executive said.
Nitin Nayar, the co-founder
and managing partner of Filter Filter Capital co-founder
ested in businesses with clear
network effects that are hard
to disintermediate through
discussions to acquire a signif-
icant stake in Sleepycat, which
produces and sells mattresses
Springwel posted revenue of
₹204 crore in FY22 ISTOCK
into losses from FY22, showed
VCCircle’s data intelligence
platform VCCEdge.
2 PE deals grab the
Capital said the fund is looking
to invest in companies operat-
ing in established sectors and
Nitin Nayar.

Industries Development Bank

discounting, he added.
Sumit Sinha, the co-founder
and managing partner at Filter
directly to consumers online,
one of the two people said on
the condition of anonymity.
the talks fell through due to a
valuations mismatch, the sec-
ond person said. This couldn’t,
In 2019, Springwel diluted
its majority stake to sector-ag-
nostic investment firm Ananta
limelight, but VC
with a proven business model. of India’s fund-of-funds, and Capital, said Chalo and Capil- Sleepycat could be valued at however, be verified. Capital, a private equity inves-
Filter Capital India Fund I
made its debut investment two
years ago, but had not made
Self-Reliant India (SRI) Fund.
Besides, it is also backed by the
likes of DSP Group’s family
lary “scaled well” and
completed follow-on
rounds in an “other-
₹70-80 crore for the
proposed transac-
tion, the second per-
Email queries to Springwel
and Sleepycat did not elicit any
response till press time.
tor backed by the Taparia fam-
ily of Famy Care Group.
Founded in 1996, Springwel
momentum slows
any announced about its fun- office, Amansa Capital’s Akash wise challenging” son said. Operated by Sleep Manage- makes and sells home furnish- Anuj Suvarna behind the slowdown in deal-
draising milestones or target Prakash and Dream11 founder fundraising market. “Capillary The startup ounts DSG Con- ment Pvt. Ltd, Sleepycat was ing products, industrial foam [email protected] making last week. The week’s
corpus. To initiate its first deal and chief executive officer has made several acquisitions sumer Partners and Saama established in August 2017 by and mattresses. The firm oper- BENGALuru largest VC deal included
it must have marked the first Harsh Jain, among others. in the US and has an opportu- Capital as its institutional Kabir Siddiq, an Indiana Uni- ates over 75 exclusive brand DynamoFL, which raised $15.1

T
close before that. The fund is So far, Filter has invested in nity to be a global leader in loy- backers. versity alumnus. It has a man- outlets, besides having a pan- wo large private equity million led by Nexus Venture
now seeking to make the final four firms: enterprise loyalty alty. Chalo expanded its bus Recently, Sleepycat entered ufacturing unit in Mumbai and India network of 1,000-plus transactions were the Partners and Canapi Ventures.
close at ₹1,000 crore. SaaS provider Capillary Tech- ticketing and tracking plat- into similar talks with Wakefit a unit in Kolkata used for pack- dealers and distributors. It has highlight of last week as In terms of other major
The fund has received com- nologies, Chalo Mobility, a bus form beyond second-tier cities Innovations Pvt Ltd, a house- aging and warehousing.Over posted revenue of ₹204 crore venture capital dealmaking developments, Singapore-
mitments of ₹175 crore from mobility portal; e-commerce in India to major metros and hold name in India’s sleeping the years, Sleepycat expanded in FY22, up from ₹114 crore a activity remained dull with based VC firm Jungle Ven-
two state-backed funds, Small logistics services firm Load- international markets.” solutions industry. However, its product portfolio to include year earlier. nine early-stage transactions tures absorbed early-stage VC
recorded in the past five days. firm HealthXCapital to
Singapore state investment strengthen its presence in the
firm Temasek and US-based healthcare sector across India

Waaree Energies to raise around ₹2,000 cr in IPO this year PE firm TPG Growth invested
$80 million afresh in existing
portfolio company Dr Agar-
and Southeast Asia.
M&A activity also remained
dull compared to the past few
wal’s Health Care last week weeks, where six to eight M&A
Aman Malik The Waaree Group has two For this, we raised ₹1,000 How much money are you three to six months. while Indian PE firm Chrys- deals were being inked.
[email protected] listed entities—Waaree crore in September 2022. looking to raise via IPO? Waaree Energies’ leverage capital struck its fourth deal of This week’s notable deals
NEW DELhI Renewable Technologies After that, we were awarded Around ₹2,000 crore. was going down at the con- the year as it invested almost include InMobi acquiring con-
Ltd (WRTL) and Waaree a 6GW project under the gov- Will most of the money solidated level till 2019 but $72 million in Mum- sent management

W
aaree Group, one of Technologies Ltd (WTL). ernment’s ‘wafer to module’ raised in the IPO accrue to it has been increasing bai-listed GMM platform Quantcast
India’s largest mak- Both have gained signifi- PLI scheme. The project cost the company or will the again. Is this cause for con- Pfaudler Ltd. The Cho-ice for an undis-

‘
ers of solar energy cantly over the past few for this will be around promoters or other cern? total PE/VC funding closed sum. This was
equipment, is rapidly expand- years. What led to this rise? ₹8,500-9,00 investors In our balance sheet for stood at $174 million. followed by logistics services
ing its manufacturing capacity I cannot obviously com- 0 crore. For also get to FY23 we have a debt of hardly In addition, companies startup Xpressbees, acquiring
to tap into the growing ment on market speculation, this, we have Waaree Energies’ pocket a fair around ₹300 crore. We are raised $22 million in VC fund- Trackon Couriers Pvt Ltd.
demand for green energy but in 2022-23, we recorded a raised the lat- topline number is share of it? likely to remain below 1:1 debt ing in the week gone by. In The week saw a few firms
sources. It also topline of roughly est tranche of ₹6,800 crore. This rise I think to equity. comparison, companies had exit their portfolio companies.
intends to float an ₹350 crore and a ₹1,000 crore. most of the CARE Ratings says your raised $217 million over the Quadria Capital, a healthcare
initial public offering profit after tax of How much is because capacities amount will topline for FY23 is likely to previous five-day period on PE fund, exited Concord Bio-
of group company around ₹55 crore (in crore each from HNIs and of this capex increased to 9GW. So, be for the be around ₹6,000 crore, the back of large-ticket deals. tech through the company’s
Waaree Energies Ltd this year, WRTL). In the first quarter of family offices this year and plan will be revenue also jumped. c o m p a n y up from ₹2,880 crore in Deal volume is the focal initial public offering. In terms
reviving a plan that it shelved FY24, we recorded a topline of last year. Where is this cap- funded by only. That is FY22. Could you please point when it comes to weekly of early-stage deals, startups
Hitesh Mehta
last year, group chief financial ₹130-odd crore with around ital likely to be deployed? internal CFO, Waaree Group what I think throw some light on this? dealmaking. However, the like Vegapay, Snax Games,
officer Hitesh Mehta said. ₹11 crore as profit after tax. We have a 9GW module accruals and as of today, We have already done the week’s dealmaking was the Teleport, Aretto, and Plus
In an interview, Mehta also What led to this rise in manufacturing capacity, how much but the final audit for FY23 and filed the lowest in recent times. The raised capital.
talked about the group’s latest profits? which we increased from 2GW money are you yet to raise? decision will be taken once we papers with the Registrar of number of deals in a week has In real estate space, Benga-
financials, order book posi- We have an order backlog of in 2021. We are also adding The internal accruals prob- announce the IPO. Companies. The topline num- been within 15-18 so far, this luru-based co-working space
tion, backward integration more than 855MW. Last year, 5.4GW solar cell manufactur- ably will be in the range of By when are you likely to ber is around ₹6,800 crore. year, including large-ticket provider BHIVE will wind up
plan and why it wants to con- we executed around 300MW. ing capacity. The capex for ₹1,500 crore, till we complete announce the IPO? This rise is because we and early-stage transactions. its maiden alternative invest-
tinue its focus on the manufac- Plus, we have a pipeline of addition of capacity towards this project. We are planning We intend to come up with increased our capacities from India celebrated its 77th ment fund, floated in May last
turing business. Edited around 3GW under WRTL. the solar modules and solar for an IPO (of Waaree Ener- the IPO this year only, so we 2GW to 9GW. So, revenue also Independence Day on Tues- year, after its fund manager
excerpts: Waaree raised ₹1,000 cell would be ₹3,700 crore. gies) this year only. will announce it in the next jumped. day and this could be a factor quit and will raise a new fund.
04 MoNDAy, 21 August 2023
New Delhi MARK TO MARKET LIVEMINT.COM

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ClOsE 1-WEEK CHANGE (%) ClOsE 1-WEEK CHANGE (%) ClOsE 1-WEEK CHANGE (%) ClOsE 1-WEEK CHANGE (%) ClOsE 1-WEEK CHANGE (%) ClOsE 1-WEEK CHANGE (%) ClOsE 1-WEEK CHANGE (%)

64948.66 -0.57 19310.15 -0.61 16757.70 -0.61 43681.00 -1.99 19209.35 -0.77 30265.32 -0.54 35283.32 -0.02
1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%)

-2.76 5.72 -2.22 6.51 -0.68 9.09 -1.13 8.08 -2.02 6.80 2.86 15.72 4.30 18.41
6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%)

6.47 7.71 7.61 7.54 11.69 8.78 13.64 0.24 8.40 5.17 22.60 19.69 25.80 24.07

m MINT SHORTS
Slow-growing UK faces tough
Are investors taking a rosy view?
time over huge £2.6 tn debt Harsha Jethmalani
Safety zone investors are fretting over the potential structural tailwinds, which include
From the financial crisis to Russia’s invasion of Ukraine, [email protected] deferment in interest rate cut expecta- attractive demographics, market-ori-
Britain has borrowed and spent its way out of every jam. Fear gauges in India and US are at Foreign investors are net buyers in tions by the US Fed. Plus, there are ented economy, and a rising middle

T
The bill for that is becoming a worry all its own. The UK’s he June quarter earnings sea- lower levels indicating complacency Indian equities so far in 2023, but risks issues emanating from China’s real class.
public debt load has soared by more than 40% to almost son is out of the way for equity among equity investors. of a reversal are emerging. estate sector coupled with the economy Still, India’s valuation leaves no room
£2.6 trillion ($3.3 trillion) since the pandemic struck, investors. Performance of CBOE volatility index India volatility index Foreign portfolio investors fund flow (in  crore ) experiencing deflation. for errors. “The current valuations of the
leaving the country owing more than its entire annual India Inc. was largely in line 130
60,000
A worry is that in a flight to safety, for- Indian market largely price in most
economic output for the first time since 1961. A heavy with expectations. Demand eign investors may shun emerging mar- short-term and medium-term positives
reliance on index-linked bonds at a time of high inflation trends were mixed. With easing input 120 ket equities, leading to out- but do not factor in any
also means Britain will pay more to service liabilities than costs, companies in most sectors saw
110
40,000 flows. “We feel bouts of cor- FOREIGN short-term risks (unknown)
any other advanced economy. While big spending has better profitability. Overall, there were rection that we are seeing in PULL and medium-term challen-
helped the Conservative-led government cushion the no significant positive surprises. 100 global and Indian equities is ges of lower profitability and
20,000
political blow of recent setbacks, it threatens to damp In any case, Indian equities are in a a reminder that risks still LIqUIDIty influx by likely lower multiples across
investment and send the UK into a negative spiral that complacent mood. The fear gauge— 90 85.88 linger. A rebound in safe- foreign institutional
investors remains a
major consumption sectors
Jan-23
could last years. Last month, the Office for Budget NSE’s Volatility Index (VIX)—has fallen 81.67 0 haven US dollar could also factor driving Indian and stocks,” said a Kotak
80 Aug-23
Responsibility warned that debt could balloon to more by 18% so far in 2023. Similarly, in the be an indication of investors equities Institutional Equities report
than three times gross domestic product over the next US, the Chicago Board Options 70 moving out of EM risk last week.
half century without action. BLOOMBERG Exchange (CBOE) VIX has moderated. -20,000
assets,” said Saurabh Jain, A worry is that in a Going ahead, a key event
flight to safety,
During this time, the benchmark index 60 head, wealth management foreign investors for investors would be the
Nifty50 has risen nearly 7%. Mid-caps -40,000 at Standard Chartered Bank. may shun emerging general elections in 2024.
50
and small-caps continue to beat large- 31 Dec 2022 18 Aug 2023 Note: Data for August is until the 17th In this backdrop, Indian market equities “We feel that the Indian
caps. Liquidity influx by foreign institu- Values rebased to 100 Source: Bloomberg Source: National Securities Depository Ltd
equities are pricey. The stock market is factoring in a
tional investors remains a factor driving MSCI India index trades at a perfect election outcome;
Indian equities. SATISH KUMAR/MINT
one-year forward price-to-earnings basically, is considering a political stable
Still, there are near-term downside also mean that RBI may opt to be on view that the RBI will begin loosening multiple of 18 times, a premium to Asian environment for next year as well. Any
risks which should not be ignored. A pause for an extended period. The surge policy in early 2024,” said a Capital Eco- peers, showed Bloomberg data. To be change in this stability may have an
deficit monsoon leading to an elevated in food prices pushed the July headline nomics report on 17 August. sure, India’s long-term growth triggers impact on the market sentiment,” said
and sticky food inflation could have consumer price index inflation beyond Globally, the latest US economic data are intact. According to Sukumar Rajah, Jain. To conclude, while the market
repercussions on the Reserve Bank of the upper limit of the RBI’s 2-6% toler- has fuelled worries that the US Federal director of portfolio management at chooses to focus largely on the positives,
India’s (RBI) monetary policy decisions. ance range. “The onset of a severe El Reserve may raise interest rates yet Franklin Templeton Emerging Markets any negative surprise local or global
True, seasonality has a role to play in the Niño and second-round effects from again to tame inflation. The sharp rise in Equity, Indian equity market is better could catch investors off-guard, leading
food inflation spike. Even so, this could higher food prices are key risks to our the US 10-year bond yields suggests that placed than regional peers given its to a correction.

All over the world, prices for the fuel are sky-high relative
to the crude oil from which it is made. HT Increasing costs may take the wind out of AU Small Fin’s sails
Diesel is pricing a scarcity with Bavadharini KS such as vehicle finance and drag on NIM in the near term. year-on-year, were flat sequen-
Elevated levels
winter market looming large [email protected] MSME. It is also diversifying its
AU Small Finance’s digital investments and portfolio expansion
This is because about 66% of AU tially as the bank used an excess
At any other time in history, the current state of the global loan book to segments such as Small Finance’s portfolio is fixed liquidity buffer rather than rais-
pushed its cost to income ratio higher in FY23.

S
diesel market would have sent some countries into a hares of AU Small Finance home loans, gold loans, and book. This means, though ing high-cost deposits. It aims to
80
panic. All over the world, prices for the fuel are sky-high Bank Ltd have gained credit cards. Cost to income ratio (in %)
deposits continue to reprice, the focus on building granular
relative to the crude oil from which it is made, pointing almost 30% from its Plus, the bank is expanding its 63 scope to pass on the increased deposits. To be sure, AU Small
60
to a scarcity that should alarm inflation-obsessed govern- 52-week lows seen in March. But geographical presence and digi- rates is limited. The bank’s strat- Finance’s stable asset quality
ments everywhere. And within just a few months, the further meaningful upsides tal footprint. It plans to open 41 egy of staying away from high- metrics and benign credit costs
Northern Hemisphere will enter winter, pushing up could well be capped ahead in over 60 new branches in FY24. 40 cost deposits and a stable inter- are positive. Still, the operating
demand for heating. The good news is that the market view of the expected net interest According to Motilal Oswal est rate environment could aid leverage may take time to play
looked even worse this time last year following Russia’s margin (NIM) compression, stiff Financial Services, strong 20 NIM. In FY24, NIM is expected out. Dnyanada Vaidya, research
invasion of Ukraine—and prices ultimately came down, competition for deposits and investments in the business and to be in the range of 5.5-5.7%. In analyst-BFSI, Axis Securities,
helped by a relatively mild winter. However, today’s elevated operating costs (opex). widening geographical reach 0 Q1, NIM fell sharply by 38 basis said, “Despite benign credit
FY16 FY18 FY20 FY22 FY24
shriveled stockpiles mean the world can ill afford any Sure, the continued credit will continue to aid business estimated points sequentially to 5.7%. costs, NIM compression and ele-
Source: Motilal Oswal Financial Services, Company
bullish market surprises: supply curbs can arise at any (loan) demand in the market, growth and further reduce geo- Amid this, deposit growth is vated opex ratios will continue to
time, or demand shocks can come from cold weather or particularly in the retail seg- graphical concentration. SATISH KUMAR/MINT
crucial to sustain the loan hurt return on assets (RoA) in
surprisingly strong economies. “We should be building ment, bodes well for AU Small Thus, the brokerage estimates ies and investments into its digi- come ratio stood at 65%, but the growth in FY24 given that most FY24. We expect RoA to con-
stocks now as they usually begin drawing seasonally from Finance. In the past few quarters, loan growth to remain steady at tal platform means opex would bank expects to retain this ratio banks would be competing to tract to about 1.6% in FY24,
September,” said Eugene Lindell, head of refined prod- it had been focusing on strength- about 28% CAGR over FY23-25. remain elevated. In the June at 63% for FY24. The elevated raise deposits. In Q1, AU Small before improving to about
ucts at industry consultant FGE. BLOOMBERG ening its key business segments But expansion to new geograph- quarter (Q1FY24), the cost-to-in- funding costs is expected to be a Finance’s deposits, while up 27% 1.75-1.8% by FY25E.”

Mark to Market writers do not have positions in the companies they have discussed here

Sebi plans follow-on FPIs invest ₹8,400 cr in Aug Owner of The Park hotels files
offer rules for REITs draft papers for ₹1,050-cr IPO PTI
[email protected]
equities 1-18 August. However, sentiments, he added. The last
in the first week of August, few weeks have been rare in
FPIs took a breather and Indian capital market history
PTI PTI

F
oreign portfolio investors pulled out over ₹2,000 crore where both domestic and FPIs and the two investors own
[email protected] (FPIs) have infused close from equities on the back of have bought into the Indian [email protected] 5.82% shareholding in the firm.
to ₹8,400 crore in Indian Fitch downgrading the credit markets, Abhishek Banerjee, Proceeds of the fresh issue

T A
o develop the market for equities so far this month pri- rating of the US. “The uncer- founder and CEO, of Lotusdew peejay Surrendra Park would be utilised toward the
emerging investment marily due to uncertainty in tainty in the global markets Wealth & Investment Advis- Hotels Ltd, which runs payment of debt and for gen-
instruments, Sebi is the global markets, economic and economic ors, said. hotels under the “The eral corporate purposes.
looking to bring in norms for concerns in China, and stabil- concerns in The uncertainty in Before August, Park” brand, has filed prelimi- The company operates hos-
follow-on offers by real estate ity of the domestic economy. China again the global Indian equities nary papers with capital mar- pitality assets under its brands,
investment trusts (REITs) and With the global economic played a role in markets and witnessed an kets regulator Sebi to raise The Park, The Park Collection,
infrastructure investment mood getting challenging due FPIs shifting their economic unabated net ₹1,050 crore through an initial Zone by The Park, Zone Con-
trusts (InvITs). to slackening Chinese focus back
concerns in China inflow for the past public offering (IPO). nect by The Park and Stop by
REITs and InvITs were demand, any weakness in toward Indian five months from The IPO comprises a fresh Zone. It has established a pres-
introduced in India to provide global equities could trigger markets, which are playing a role March to July on issue of equity shares worth Proceeds of the issue would be ence in the retail food and bev-
investors with an opportunity Sebi plans to further develop the wild gyrations in local shares have been more in the FPI swing the resilience of ₹650 crore and an offer for sale used for repayment of debt. ISTOCK erage industry through its retail
to gain exposure to real estate market for REITs, InvITs. MINT and result in FPIs’ flow turning resilient and sta- the Indian econ- (OFS) of equity shares to the brand ‘Flurys’.
and infrastructure projects choppy going ahead, Srikant ble,” Himanshu omy against the tune of ₹400 crore by promot- Trust, Apeejay Pvt Ltd, RECP It has five decades of experi-
respectively, with diversifica- course, retail investors Chouhan, head of Equity Srivastava, associate director- backdrop of an uncertain ers and investor shareholders, IV Park Hotel Investors Ltd, ence in the hospitality business
tion of risks through pooling increasingly participated in it. Research (Retail) at Kotak Manager Research, Morning- global macro. according to the draft red her- and RECP IV Park Co-Investors of owning and operating hotels,
arrangements. “These are well structured, Securities, said. star India, said. Moreover, FPIs invested ring prospectus (DRHP) filed Ltd. with the first hotel being
Generally, REITs invest regulated, and transparent According to data with the Also, better-than-expected over ₹40,000 crore each in on Saturday. At present, promoters and launched under brand “The
majorly in completed and vehicles that give them an ave- depositories, FPIs put in a net earnings for the June quarter the last three months (May, Those offering shares in the promoter group members hold Park” at the iconic Park Street
rent-generating real estate nue for developing a perpetual sum of ₹8,394 crore in Indian lent positive support to the June, and July). OFS are Apeejay Surrendra a 94.18% stake in the company, in Kolkata.
assets. Privately placed InvITs stream of cash flows,” he said.
can invest in under-construc- The Securities and
tion assets as well as com- Exchange Board of India (Sebi)
pleted and revenue-generat-
ing assets and public InvITs
can invest majorly in com-
has been continuously
engaged in strengthening the
regulatory framework as well
‘Index earnings yield is unattractive compared to bond yields’
pleted and revenue-generat- as in easing the process for
ing assets. these two products. Ujjval Jauhari valuations are not cheap, and as well as sequentially due to around the current levels for CAGR (compound annual
“Taking cognizance of pote- To streamline the process of [email protected] index earnings yield is also rel- stable-to-higher product pri- the next few months and there growth rate) in the next two
ntial of REITs and InvITs in public issues of REITs and NEW DELHI atively unattractive versus ces and stable-to-lower raw is no major catalyst for a sharp years. The index earnings

‘
driving the future of Indian InvITs, time taken for allot- bond yields. Edited excerpts material prices. rally or for a sustained cor- yield is also relatively unat-

T
infrastructure, Sebi would ment and listing after the clo- here has not been any What are some of the key Has the result season been rection. tractive as
endeavour to further develop sure of the issue was reduced meaningful change in takeaways from the June able to provide impetus to What could against bond
market for REITs and InvITs to six from 12 working days. Kotak Institutional quarter results? forward earnings pros- prove to be We saw continued yields. The
in the coming years through Similarly, for privately Equities’ earnings growth out- The net profit of Nifty com- pects and market outlook? key risks on demand weakness in key upside
policy measures including placed InvITs, time taken was look for FY24-25 following the panies was up 30% year-on- While there were sector- or the down- autos, fast-moving can come
considering bringing in norms reduced to six from 30 work- June quarter year (y-o-y) and stock-specific earnings side and from a strong-
consumer goods,
for follow-on offers by REITs
and InvITs,” Sebi said in its
ing days. These measures will
help enhance liquidity in the
results. Its chief
executive offi-
m INTERVIEW operating prof-
its were up 14%
upgrades and downgrades, in
general, there has not been
triggers on
the upside chemicals and
er-than-exp-
ected demand
2022-23 annual report. market and bring about parity cer and y-o-y. However, any meaningful change in our for the mar- IT services. in the festival
Krishnan S Iyer, CEO, of with equity instruments. co-head Pratik Gupta said the this growth is overstated as earnings growth outlook for kets? season or due
Pratik Gupta
NDR InvIT Managers, said The OFS mechanism has market will continue to con- this was due to high non-oper- (FMCG), chemicals and infor- FY24-25 which remains at 15% India’s val- CEO, Kotak Institutional Equities to pre-elect-
given the capital requirements also been made available to solidate around the current ating incomes, and due to one- mation technology (IT) servi- CAGR. Given that valuations uations are ion spending,
needed for the growth of infra- unitholders or sellers of listed levels for the next few months off profits at the oil marketing ces. However, we saw good are also not cheap, there has not cheap— a quicker-
structure, it is very important REITs and InvITs to offer their and there is no major catalyst companies. We saw continued results from capital goods and been no change to our expec- the Nifty trades at 21x FY24 P/ than-expected decl-ine in US/
that both domestic institu- holdings through stock for a sharp rally or a sustained demand weakness in autos, cement companies. In general, tation that the market will E (price-to-earnings) and 18x EU inflation, or a sharp decline
tions, mutual funds, and, of exchange mechanisms. correction. He believes India’s fast-moving consumer goods profit margins improved y-o-y continue to consolidate FY25 P/E for 15% earnings in global oil prices.
06 MoNDAy, 21 August 2023
New Delhi CORPORATE LIVEMINT.COM

Telcos look to free capital by Bulk sales hitch a ride Adani to

settling ₹76,780 cr litigation build two
Gulveen Aulakh
[email protected]
new delhi
on soaring stock mkt transmission
lines worth
₹2K crore
T
elecom service provid-
ers will pursue resolu-
tions and reforms aimed Block and bulk deals of ₹1.35 trillion since 1 Jan, ₹92,800 cr in Apr-Aug PTI
at reducing sector-related liti- [email protected]
gation, totalling over ₹76,780 MuMBAi
crore, arising from tax dis- Mayur Bhalerao
Cashing in

A
putes and legacy matters, top [email protected] dani Electricity Mum-
The biggest stake sales via bulk and block deals this year.
executives said. MuMBAi bai is investing over
Vodafone Idea Ltd chief Stake sold (in %) Amount (in ₹ crore) ₹2,000 crore to build

B
executive Akshaya Moondra A structural change was needed to prevent avoidable litigation, said ulk share sales have hit a record Shriram Finance 8.34 4,824 two new transmission lines in
said in an earnings call with Vodafone Idea CEO Akshaya Moondra last week. MINT $11 billion during FY24 so far, as the city to strengthen its net-
investors last week that a promoters and large public Adani Power 8.1 8,811 work as it moves closer to go
structural change was needed matters, the most crucial A senior executive who investors cashed in on a buoyant more green by sourcing as
to prevent avoidable litigation. among them being the one- declined to be named said the equity market fuelled by nimble InterGlobe Aviation 7.04 5,746 much as 60% of the energy
“We need to make a struc- time spectrum charge, which issues would have to be taken earnings growth. needed for the city from
tural change that the depart- has been under dispute since up with the department but A Mint analysis showed that key stake- Adani Ports 5.5 7,038 renewables by 2027, a senior
ment (income tax) should not 2013 when the Department of would require the consensus holders, including promoters, have sold company official said.
really be raising demands in Telecommunication first of all operators, given that shares worth over `1.35 trillion through Adani Green Energy 5.03 7,467 The two new transmission
case there is a matter that has raised the demand from telcos Reliance Jio Infocomm Ltd is a bulk and block deals during the calendar lines comprise the 84 ckm
been decided favourably by a to pay up for spectrum allo- new player in the market and year so far, out of which deals worth over Adani Enterprises 4.96 9,600 Kharghar (in Navi Mumbai)
higher judicial authority. We cated to them administratively was bound to have far fewer `92,800 crore were concluded in the first Vikhroli line in the northeast-
need to make that representa- beyond the 4.4MHz that was matters under litigation. five months of FY24, which is more than Vedanta 4.10 3,983 ern suburb of the megalopolis
tion stronger so that this bundled with the licences “The industry will have to double that of the same period last year. Source: BSE, NSE
and the Thane-Aarey Colony
unnecessary litigation can be issued prior to the Supreme come together to seek a solu- “A strong market rally driven by the line. The Vikhroli line will be
avoided,” he said, specifically Court judgement in the 2G tion. The longer the disputes resumption of robust FII (foreign institu- SARVESH KUMAR SHARMA/MINT
ready by 2025.
on the income tax matters, scam case in 2012 that man- continue, the amounts under tional investor) flows, sustained domestic to tap capital markets for their needs,” Roy said Anil Rego, CEO and fund manager at “We hope to begin the
which he noted dated auction of dispute only increase. Telcos inflows, especially in small-cap funds, led to added. Right Horizons. work on the project from this
were not limited Issues would have airwaves. For will have to make provisions a valuation re-rating across the board, and To be sure, capital-raising gained “As domestic interest rates are at a peak October. The Thane line will
to the telecom to be taken up Vodafone, the for it, which is a drag on their investors looking for transactions where momentum only in the second half of the level, the preference is to sell stakes instead begin after the first line and
sector alone. with the amount is ₹3,599 books,” the executive said. they could deploy significant ticket sizes in calendar year, since markets were per- of raising debt,” Rego said. will be commissioned in
He said a large department but crore, and for Legal experts said telecom is one go have contributed to the surge in ceived to be overvalued in the first half. Equity markets began picking up in the 2027,” a senior company offi-
part of the
would require the t h e a m o u n t one of the most litigated sec-
Bharti Airtel Ltd, share sales,” said Subhrajit Roy, India head, “By the middle of the year, US inflation first quarter of FY24, leading to an increase cial, who did not want to be
amounts under tors and hence has a dispro- global capital markets, Bank of America. data and Fed (Federal Reserve) commen- in share sales. During April-July, shares named, told PTI.
litigation came consensus of all under dispute is portionate number of cases In 2023 so far, Adani Group promoters tary led investors to believe that interest worth `9,660 crore were sold via initial The firm reached financial
from income tax operators ₹15,178 crore. The and amounts under dispute. offloaded stakes worth around rates were near their peak with public offerings (IPOs), `11,429 crore worth closure last week by securing
matters, and even matter is pending “One avenue that could help `37,441 crore via block and bulk expectations for rate cuts in of shares were sold via offers for sale and ₹1,700 crore debt from inter-
if some matters with Supreme in preventing or settling dis- deals in five group firms. early 2024. That led to weak- `8,141 crore was raised through qualified national lenders for the pro-
are covered by earlier judicial Court.
pronouncements by higher
putes would be to develop
The bulk of Airtel’s ₹48,407 industry-wide consensus on
The Vedanta Group’s pro-
moter Twin Star Holdings `37,441 cr ness in the dollar and an institutional placements, according to pri-
increase in risk appetite, mary market data tracker Prime Database.
jects being executed by its
parent Adani Transmission.
authorities, the demands keep crore under litigation ema- specific—particularly liti- divested 4.1% in Vedanta Ltd Stakes sold by which was positive for “Foreign portfolio investors have “We will be investing more
on getting raised each year and nates from regulatory matters gious—issues. However, for `3,983 crore, while IndiGo Adani promoters emerging market equities,” invested close to $16 billion in this calendar than ₹2,000 crore for this, of
are taken to the Telecom Dis- such as the revision of spec- developing such a consensus co-promoter Rakesh Gang- in 2023 so far said Pratik Gupta, chief exec- year so far, and that number for domestic which ₹1,700 crore will be
putes Settlement and Appel- trum usage charges, alleged may be an uphill task, given wal’s wife Shobha Gangwal sold utive officer (CEO) and co-head investors is nearing `1 trillion. Liquidity debt-funded,” the official
late Tribunal or TDSAT for violation of quality of service the multitude of operators and all of her 2.99% stake in InterGlobe of Kotak Institutional Equities. needs to find a home, creating the need for said, adding the project also
settlement. norms related to points of a history of frequent litigation Aviation for `2,801.8 crore. “India is being seen as a steady supply to satiate the demand. With block includes setting up a 400-kV
“Now, definitely, as an interconnect congestion, and disputes among players. In Recently, a promoter group of Sajjan growth market with corporate earnings trades and IPOs, investors get to invest substation which will raise
industry, we would be repre- mergers of businesses, and the future, these issues might Jindal-led JSW Energy Ltd sold 1.3% to growth of 15% in FY24, largely steady cur- chunky capital in the stories of their choice the transmission capacity by
senting, and we keep on repre- acquisition of spectrum out- be resolved faster through the GQG Partners for `717.6 crore. And, on Fri- rency outlook and stable political environ- vis-à-vis purchase from the secondary mar- 1,500 megawatts (mw), as the
senting this with the relevant side auctions, among others. proposed Indian Telecommu- day, Pfaudler Inc. sold a 13.56% stake in ment,” added Gupta. kets, which could lead to cost inefficiencies company expects the peak
ministries,” he said. Airtel did not comment on nication Bill, 2022,” said Sha- GMM Pfaudler Ltd for `824 crore. Out of the total `92,800 crore large- for that kind of volume,” said Bhavesh demand for the megapolis to
He added the carrier is also Mint’s queries on whether it shank Mishra, partner, dispute “If this trend sustains, we think this will ticket deals, Indian promoters alone have Shah, managing director and head of cross 5,000 mw mark
engaging with the telecom will approach the government resolution at Shardul Amar- create a positive investment mindset for sold shares worth about `81,000 crore in investment banking at Equirus. by FY25 from around 4,000
department on regulatory for a resolution. chand Mangaldas & Co. future deals and will also encourage issuers 2023, which is nearly twice that of 2022, mw now.

Streaming Proposed sale of govt stake in Murugappa Group settles family feud
services IDBI Bank unlikely this fiscal FROM PAGE 1 about amity and maintain

enter shark FROM PAGE 1 cess were not pursued as the

to ₹899.95; Coromandel
Engineering Co. Ltd jumped
goodwill among the members
of the Murugappa family, and
to maintain overall harmony
waters after domestic product (GDP).
cooling of oil prices depressed
valuations. During FY23, the
from ₹11.8 to ₹45.65; Coro-
mandel International Ltd
within the family, in this gen-
eration, as well as in the
“The divestment of IDBI disinvestment of Central Elec- stock grew from ₹543.9 to future, according to the
SonyLIV hit Bank is likely to be pushed to the
next fiscal,” said one of the two
tronics Ltd was scrapped after
the selected bidder failed to
₹1,069.65; E I D-Parry (India)
Ltd shares have gone up from
group’s statement.
Arunachalam had
people cited above on condition disclose its ongoing litigation in ₹139.75 to ₹455.85. demanded a board seat in the
FROM PAGE 1 of anonymity. “We are unlikely the National Company Law Similarly, shares of Tube group’s holding company
to achieve the divestment target Appellate Tribunal (NCLAT). Investments of India Ltd have based on the family’s 8.23%
ticket sizes (in terms of fund- this year. However, we have off- Earlier this year, the govern- jumped from ₹274.2 to shareholding.
ing) are smaller,” Modi said. setting positives in the non-tax ment scrapped the strategic ₹2,783.65 during the same Joshi said it is still unclear
The business reality show revenues front, including disinvestment of Pawan Hans period. whether the issues have been
space has already evolved in higher dividends from RBI and RBI transferred ₹87,416 crore Ltd after it disqualified the suc- The stock of newly resolved based on a will
the West with shows like likely higher dividends from as dividend to the government cessful bidder that had failed to acquired CG Power and drafted earlier or a mutual
Dragons’ Den, The Profit and banks,” the person added. for FY23. HT disclose the litigations of its Industrial Solutions Ltd has compromise.
The Apprentice. That some- Mint first reported the defer- consortium partners. risen from ₹5.11 to ₹429.65 “A seamless family settle-
thing like Shark Tank has ral of the IDBI Bank privatiza- (in the divestment process), but “The government’s goal of now, while shares of Shanthi ment augurs well than a legal
found acceptance on an tion on 17 March. it’s not an unfair delay,” said the strategically divesting its stake Gears Ltd swelled from option of going to the court,
on-demand service like RBI transferred ₹87,416 second person, who spoke on in various public sector compa- ₹66.55 to ₹450.05 and the considering that the latter is a
SonyLIV means that people crore as dividend to the gov- condition of anonymity. nies is an ongoing process,” the stock of Wendt (India) Ltd has long-drawn, dull and expen-
have sought it out in their per- ernment for FY23. An addi- A spokesperson for the first person said. “As far as gone up from ₹1,748.65 to sive process without any
sonal time, and that it’s not just tional dividend of about finance ministry didn’t respond divestment is concerned, many ₹13,150. Valli Arunachalam, a New York-based nuclear scientist and assurance of a pleasant out-
catering to viewers interested ₹13,800 crore was received to queries. The Centre planned things have to be considered The group said Sunday the daughter of former Murugappa Group chairman M.V. Murugappan. come,” Joshi said.
in the business space, Modi from publicly traded state-run to sell its stake in IDBI Bank, and looked into, like regulatory two parties have agreed to Murugappa Group has
pointed out. banks during the year. Shipping Corp. of India Ltd, and due diligence processes, settle the disputes and differ- committed to undertaking groups will be withdrawn as reported double-digit growth
Regardless of genre, reality The government’s divest- BEML Ltd and Container Corp. before decisions are taken.” ences between the family the necessary transactions to per the terms of the family for the second year in a row in
shows across dance, music and ment target of ₹51,000 crore for of India Ltd during the year. The government and Life branch of late M.V. Murugap- effect the family arrangement arrangement, after all, agreed the post-pandemic phase,
business categories cash in on FY24 is lower than the initial Last year, it shelved the stra- Insurance Corporation of India pan, including Valli Arunach- within the next 90 days,” the steps specified in the family with its revenue crossing
the idea of the underdog, estimate for the previous fiscal. tegic disinvestment of Bharat (LIC) hold 94.72% stake in IDBI alam and Vellachi Murugap- group said. settlement have been com- ₹70,000 crore in FY23.
industry experts point out. The estimate for FY23 was, Petroleum Corp. Ltd, which Bank. While LIC has a 49.24% pan on one side, and the rest “As part of the family pleted,” a statement by the The group’s total sales rose
“Everyone loves to watch, sup- however, cut to ₹50,000 crore was expected to generate stake, the Centre holds 45.48% of the family members, on the arrangement, the parties have group said. 36% to ₹74,220 crore in FY23
port, and has an opinion (on from the earlier target of ₹50,000-60,000 crore. Plans in the lender. other side. also agreed that all legal pro- The family arrangement is from ₹54,648 crore in the
what works). Plus, terms like ₹65,000 crore. “There is a delay to revive the divestment pro- [email protected] “The family members are ceedings between the family envisaged primarily to bring previous year.
startup are now part of every-
day currency,” Sandeep Goyal,
an advertising veteran and the
managing director of Rediffu-
sion, said. Like other genres,
business reality shows, too, are
Retail investors dump stocks of LIC, Nykaa, Paytm, others to cap losses
now drawing a reasonable
amount of interest, bringing FROM PAGE 1 Vistas Corp. Ltd and Sterling IPO fails market value since their IPOs; 21 foreign investors (both port- IPO investors, with its stock
families together. Plus, irre- and Wilson Renewable Investors in Nykaa and state-run LIC have seen the worst however, at least 125 compa- folio and direct) and two going up from the listing price
spective of whether contest- put in money in fresh IPOs as Energy Ltd. These companies losses, a Mint analysis showed. nies, mostly large-caps, caused mutual funds have dumped of ₹311 to ₹625.50 now. ICICI
ants eventually manage fund- primary markets seem to be have seen the value of their Fall in price Loss in market value a loss of ₹6.77 trillion for their shares of Nykaa over the past Prudential Life Insurance Co.
since listing (%) (in $ billion)
ing, even an appearance on the reviving,” said the head of shares falling in the range of IPO investors so far, forcing year. In Paytm, at least Ltd, too, has almost doubled
Nykaa
show gives them an entry into equity capital markets in India 42% to 89%, eroding almost (10 Nov 2021)
-88.3 -34.1 hundreds of thousands of dis- 160,000 retail investors, four the wealth of its IPO investors
the funding ecosystem, he said. at a large US-based banking $20 billion in investor wealth LIC gruntled public investors to mutual funds, and two banks as the stock has risen from
-31.4 -22.7
During the period of lock- and financial services firm. since listing. (17 May 2022) either exit at exited on a net ₹329 on listing to ₹537.30
down and covid curbs, there Investors in Nykaa and “Without clarity on improv- Paytm -60.0 -9.9 steep losses or At least 2.2 basis. now. Shares of SBI Life Insur-
(18 Nov 2021)
was a greater emphasis on sup- state-run LIC have seen the ing profitability or business EaseMyTrip
await indefinitely million retail Of all the firms ance Co. Ltd have risen from
porting local businesses and worst losses, the Mint analysis model, there is no visible -80.0 for their IPO
(19 Mar 2021) -3.1
shareholders, 73 listed in the past ₹733 at listing to ₹1,281.8
the local economy, Meghna showed. These two companies chance of improvement in Star Health -31.0
investments to large FIIs, and 22 five years, LIC has apiece now.
(10 Dec 2021) -2.0
Joshi, creative producer, alone saw investor wealth ero- stock prices in sight for these turn a profit.
PolicyBazaar mutual funds sold witnessed the LIC has been losing market
series: non-fiction and films, sion of $34 billion and $23 bil- firms. This is causing a desper- -25.8 -1.4 Companies largest exodus share in terms of first-year pre-
that saw the larg- shares of 12 large since its mega-
(15 Nov 2021)
Locomotive Global Media, lion, respectively, with their ate exodus of public investors,” Aditya Birla Sun
mium over the past two years
said. “This shift in perspective market values falling by 88% said the head of a boutique Life AMC (11 Oct 2021)
-45.1 -1.1 est erosion in companies IPO. According to since listing, which has added
not only impacted people’s and 32% since their IPOs. investment banking firm. Nuvoco Vistas -42.1 -1.0
investor wealth exchanges, at to its woes.
outlook on life but also their Other newly listed firms At least 441 companies got Corp (23 Aug 2021) since IPO include least 82 mutual For multi-brand beauty
Source: Bloomberg, Exchanges
interests. This was precisely that saw wealth erosion listed on stock exchanges in Nykaa (₹2.83 trillion), LIC funds (various schemes), four retailer Nykaa, top manage-
SARVESH KUMAR SHARMA/MINT
the opportune moment for a include Paytm, EaseMyTrip the past five years. (₹1.89 trillion), Paytm (₹81,837 large FIIs, and 560,000 retail ment exits earlier this year,
show like Shark Tank to make (Easy Trip Planners Ltd), Star For instance, LIC, which have caused losses of 32% and are sitting on losses of ₹1.7 tril- crore), EaseMyTrip (₹26,014 shareholders have exited LIC and the company’s struggle to
its mark. However, the endur- Health and Allied Insurance sold shares in a ₹21,000 crore 60%, respectively, to their IPO lion. Out of the 441 firms, 316 crore), Star Health (₹16,229 over the past year. enhance profitability have
ing appeal extends beyond the Company Ltd, PolicyBazaar IPO in May 2022, and Paytm, investors. companies—mostly small and crore) and PolicyBazaar Meanwhile, rival HDFC Life raised investor concerns and
pandemic’s influence. These (PB Fintech Ltd), Aditya Birla which sold stock in a ₹18,500 On a net basis, investors in mid-cap—together have made (₹11,397 crore). Insurance Co. Ltd has more pushed the stock 88% below
shows resonate with viewers.” Sun Life AMC Ltd, Nuvoco crore IPO in November 2021, IPOs of these 441 companies gains worth ₹5.11 trillion in As public investors, at least than doubled the wealth of its its listing price of ₹1,125.
LIVEMINT.COM CORPORATE MoNDAy, 21 August 2023
New Delhi 07

SBI eyes Mumbai flats for execs

The public sector bank is looking to buy 60 apartments in upmarket South Mumbai for ₹500 crore
Shayan Ghosh & Devina Sengupta ers to exit become much higher,” said
MuMbaI Anandorup Ghose, partner, Deloitte
India. Ghose said wage negotiations

S
Government data shows that sales in US, India’s biggest pharma tate Bank of India (SBI) is and changes in benefits take time in
exports market, rose 6.2% to $7.5 billion last fiscal year. BLOOMBERG looking to buy 60 apart- the public sector and require discus-
ments in upmarket south sion with unions as well. State-owned

US business to fuel Mumbai for ₹500 crore to

house executives, under-
scoring how state-run banks offer gen-
banks, he said, do not have instances of
long-term incentives which have been
discussed in the past but have not yet

growth for Indian erous perks to compensate for differ-

ences in remuneration with private
sector rivals.
been adopted as a part of the compen-
sation structure.
Last year, SBI decided to liquidate
India’s largest lender has called for its real estate management subsidi-
pharma companies applications from architects inter-
ested in the project. They will be
selected through a design competi-
ary. Incorporated in June 2016, SBI
Infra Management Solutions Pvt. Ltd
used to look after buying, selling or
Naman Suri growth in Q1FY24 will be tion. The architect, who will double leasing premises, providing advisory
[email protected] driven by volumes in the US as a project management consultant, services on existing and upcoming
NEW DELhI market: “Aggregate US sales will help supervise work on these business centres. It also planned, exe-
of coverage universe (compa- apartments, which will be either cuted and monitored the construc-

I
ndian pharmaceuticals nies covered by the firm) is ready or under construction, prefer- tion of new buildings, interiors and
industry increased its US likely to grow... Lesser price ably available in a block exclusively furnishing of all SBI premises, among
business in the first quarter erosion in base business and for SBI. others.
and may further consolidate improved supplies on account The bank is keen on South Mumbai SBI has called for applications from architects interested in helping the bank finalize the apartments. REUTERS According to the subsidiary’s FY21
presence in that market, of few companies vacating the neighbourhoods such as Mahalaxmi, annual report, it was severely affected
industry analysts said. market may drive sequential Parel, Lower Parel and Worli, showed saw a 1% attrition in the same period. sure to various aspects of banking than Benefits such as housing, pension by the covid-19 pandemic in general
The companies are cur- growth across all the universe the document reviewed by Mint. The In comparison, attrition at HDFC private lenders, where internal portfo- and medical are a big plus for public and by the countrywide lockdown in
rently in a sweet spot, said companies.” architect will be paid a professional fee Bank stood at 34.15% and ICICI Bank lio changes are few. sector banks, Agrawal said. In rare particular during the first half of FY21.
Ambareesh Baliga, independ- Subsequently, Indian of up to 0.5% of the total project cost. at 30.9% in FY23, data from annual “The zonal head of a PSU bank han- cases, when chief general managers or “Entire activities were on hold coun-
ent research analyst. “If you pharma companies gained Meanwhile, SBI already has about reports showed. A spokesperson for dles a much larger P&L than a private executive directors feel they cannot trywide for a few months, and later,
look at the Q1 earnings, most share in the US generics mar- 500 apartments of one, two and climb the ranks further, they are activities were resumed but on a low
of them have come out with ket, with companies such as three BHK (bedroom, hall, RETENTION PERKS open to private banks. Some said scale due to scarcity of labour and
better than expected earn- Sun Pharma, Cipla, Lupin, kitchen) sizes for its employees that while PSU employees are at materials,” it said.
ings. And as compared to ear- Zydus Lifesciences, and Dr. across Mumbai. PREFERRED SBI already SBI’S investment in THE bank saw a 3% a salary advantage in the initial It added that operations were sus-
lier, most of them are US FDA Reddy’s Laboratories seeing SBI’s willingness to spend on neighbourhoods
the flats include
for possesses around
500 apartments for
employee housing
emphasizes the
attrition rate in FY23,
in contrast to private
years, growth slows down later. pended from January 2021 due to
(Food and Drug Administra- 12% to 79% growth in Q1. employee housing highlights Mahalaxmi, Lower its employees across perks it offers for sector peers with “The compensation structure rollback of all projects on “as is where
tion) compliant now, and with “Some of the companies the role of perks in retaining tal- Parel, and Worli Mumbai talent retention higher attrition at PSU banks is [better when is basis” by SBI, its only customer.
them spending a decent por- like Sun Pharma have moved ent at the bank. At a time when compared with] private firms at “To reduce the fixed cost, the man-
tion of revenue in R&D up the value chain and it is private sector peers have seen the junior levels, [but] at mid or agement of the company then
(research and development), doing very well; Lupin is also significant attrition, especially in jun- SBI said that “as a policy (the) bank bank employee of the same level,” said senior levels, where private banks start decided to repatriate all officials
I believe them to doing very well. ior levels, SBI reported a 3% attrition, does not comment on such matters”. Monica Agrawal, managing director paying significantly better, typical PSB deputed from SBI back to their par-
be able to sustain Indian companies So, we will see including superannuation and volun- Apart from job security and perks, (financial services), Asia Pacific India employees become more entrenched ent organization,” as per the annual
Q1 growth going are also looking t he pr odu c t tary retirements, in FY23. Rival public many employees stick to public sector lead–board and CEO services at Korn in their organizations and ways of report cited above.
forward,” Baliga to receive final range upgrading sector lender Bank of Baroda (BoB) banks because they offer wider expo- Ferry. working and consequently the barri- [email protected]
said. approvals for the to get moving
The US market forward as far as
launch of
has been facing the US market is
drug supply abbreviated new concerned. We
shortages due to drug applications also have to get it
opaque and to the European
BoB to auction Sunny Deol’s Juhu property to recover ₹56 cr
interrupted sup- market, Chinese
ply chains as quality and market, and Japanese market. Shayan Ghosh & e-auction, bids for which have has now come out with an auc- wants to save the property
financial issues continue to So, there is an opportunity Gaurav Laghate to be submitted by 5 pm on 22 tion notice because Deol is in from getting auctioned off,”
shutter manufacturing plants, and Indian companies should September. The reserve price the news after the success of the person said.
while subsidizing inventory capitalize on it and get mov- MuMbaI for the proposed sale is ₹51.43 Gadar 2. However, the star is If the property is auctioned,
built-up during covid subse- ing forward as the US market crore. not a shareholder in the movie the buyer will only get sym-

S
quently eroded prices. will aid to the growth,” said tate-owned Bank of Bar- The notice says the borrow- and has already bolic possession,
This has benefited Indian Sudarshan Jain, secretary oda (BoB) has decided to ers or guarantors can redeem received his fee. The property has as physical pos-
companies as the US pharma general, Indian Pharmaceuti- auction actor Sunny the securities by paying the “At best, he will been up for sale session has to be
industry sees an abatement in cal Association. Deol’s property in Juhu to outstanding dues, costs or get some amount for a while, but no approved by a
price erosion, which is in sin- Indian companies are also recover ₹56 crore. In an auc- charges anytime before the as a bonus buyer has come district magis-
gle digits, say industry ana- looking to receive final tion notice put out in newspa- sale is conducted. because of the trate, the person
for the asking
lysts. approvals for the launch of pers, a week after the release of According to BoB, the prop- success of the said, adding that
This has also started to abbreviated new drug appli- the actor’s movie Gadar 2, the erty includes “all that piece movie, but it is price, a person in till then, Deol can
show in sales from India to the cations (ANDAs). The bank has named Ajay Singh and parcel of land bearing sur- much less than the know said operate his busi-
US, India’s biggest market ris- approval rate is improving in Deol, alias Sunny Deol—a vey no.41, hissa no.5 (pt) CTS the amount the ness from Sunny
ing 6.2% to $7.5 billion last fis- the US and a higher number member of parliament—the no. 173 of village Juhu, taluka Actor and MP Sunny Deol ANI family owe to the Villa.
cal year, shows government of niche product launches borrower and guarantor, along Andheri, Mumbai suburban bank. Right now, either they Emails sent to Deol’s adviser
data. such as injectables that face with brother Bobby and father district, admeasuring 599.44 Road, Juhu”. has been up for sale for some will have to liquidate some real and a spokesperson for BoB
ICICI Securities Ltd, in its limited competition will aid Dharmendra as guarantors. square meters underneath a A person close to the Deol time, but there has been no estate or Sunny will have to remained unanswered till
Q1FY24 pharma sector pre- the margin profile of the com- The bank has set 25 Sep- structure known as Sunny family said on the condition of buyer at the asking price. sign some more films and raise press time.
view report, highlighted that panies, feel industry analysts. tember as the date for the Villa situated at Gandhigram anonymity that the property The person also said BoB capital as a signing fee if he [email protected]

Airport lounge services firm 360 One to set up sector-focused private equity funds
Encalm enters hotel business Ranjani Raghavan &
Sneha Shah
win an edge will be industry-fo-
cused thematic funds. And, so,
fund size closer to the launch
date. The Indian PE market is
nies such as Byju’s, Upgrad, and
Pharmeasy. It invested in Series
you will see us being much now matured to absorb sector B and Series C stages.
Varuni Khosla class traveller lounge at the MuMbaI more industry-led, going for- focused funds and major sec- For financial services, it may
[email protected] international airport in Delhi. ward,” said Sameer Nath, chief tors don’t hold a concentration not focus much on fintech but

3
NEW DELhI In April, it extended its opera- 60 One WAM Ltd, for- investment officer in his first risk anymore, he added. will choose areas with less reg-
tions to the Goa airport. It is merly IIFL Wealth, is formal interview since taking It will focus on healthcare, ulatory overhang. “There is a

E
ncalm Hospitality, which now actively pursuing interna- charting a course towards over as CIO and head of venture financial services, consumer, lot of underserved in financial
operates Encalm Lounge, tional expansion. a sector-focused private equity capital and private equity busi- and technology. “We’re not services, across NBFCs, banks,
Atithya Services, and air- The cornerstone of its opera- fund strategy, building a sepa- ness. “I don’t think we are set up saying that we’re going to pick small finance banks, insurance,
port spa facilities, has forayed tions is its lounge at Delhi air- rate identity in an industry pri- to compete as generalist (on the some new esoteric sector; they credit cards, and there is still a
into the hotel ownership and port, which caters to a daily marily known for broad sector PE side),” he added. are probably most active sec- lot to play for,” Nath said.
management space, according footfall of about 10,000 users. investments. With assets under The first private equity the- Sameer Nath, CIO, 360 One tors for VCs and PEs. There is The firm counts VC funds
to the company. Additionally, Encalm’s Hyder- management crossing ₹23,000 matic funds will be launched WAM Ltd. traditional and digital in all of such as Chiratae, Orios, Saama
Encalm’s debut venture is a abad venture, which was crore, or $2.6 billion, 360 One later this year, he added. “We these segments—we’ve done a and Kae Capital in its fund of
58-room hotel in Hyderabad launched in January, is seeing is a leading domestic private will be coming to the market that space,” he said. lot of homework on them.” funds portfolio.
airport. It will also start work on about 5,000 travellers avail its investor in India. with a healthcare fund. We are Nath said the company will The firm already has a fund ranjani.raghavan@live-
developing a 2.13-acre land Encalm Hospitality started services on a daily basis. “On the PE side, our right to seeing tremendous interest in reveal the specifics such as the investing in tech-first compa- mint.com
parcel at Goa’s Manohar Inter- operating airport lounges in India’s air traffic has surged
national (MOPA) Airport. January 2022. GETTY far exceeding the expectations
In July, Mint first reported of the industry to breach pre-
that the MOPA Airport devel- airports from 140 to 220 by
oper had signed agreements to 2025.
build two hotels on a land ear- “We were allotted the land at
covid levels. In July, air traffic
rose 25% on domestic routes to
12.1 million against 970,000
Shimla hotels grapple with Aug travel disruptions
marked in North Goa. IHCL- Goa airport and it is likely to be passengers a year ago.
owned Ginger or Taj Property a 220-plus room, 4-star-plus “Air traffic has grown expo- Varuni Khosla Wildflower Hall, known for its ellers are shifting focus to alter-
will be developing the second hotel. However, we have not nentially and that has meant we [email protected] rack-rate of ₹50,000 per night native locations such as Mun-
hotel, said people in the know. finalized the operator yet. Ini- have got a steady inflow of trav- NEW DELhI for the most affordable room nar, Coorg, Coonoor, Kodaika-
Encalm Hospitality, incor- tially, it will be a mixed model of ellers to our lounges. They are without taxes, is now available nal, Ooty, and the North East.

T
porated in Octo- ownership and now three times the size of ravel agencies have at a 36% lower rate of ₹32,000. Also, there is growing interest
ber 2021, started Encalm plans to management. But what they were before we reno- reported a softening of According to travel opera- in safaris, outdoor camping,
operating airport operate 3 hotels we are sure that vated the space and took over hotel rates for the next tors, Himachal trekking, and eas-
lounges in Janu- and 21 lounges by we will be build- more, like at the terminal 2 in 7-10 days in and around Shimla, Pradesh was wit- Unrelenting rains ily accessible
ary 2022, besides 2025. It may raise ing hotels that are Delhi,” said Sharma. The com- in the wake of a wave of cancel- nessing high tour- and floods took a nearby destina-
offering meet and profitable from pany manages about 70,000 lations for hill getaways due to ist footfall this toll on the state’s tions, said Rajeev
institutional
greet services at the beginning,” sq. ft lounge space in Delhi, and rains and landslides in Hima- year, with Shimla tourism resulting Kale, president
airports. The firm capital for its Vikas Sharma, the 17,000 sq. ft in Hyderabad. chal Pradesh. The dip in rates maintaining pole and country head
expansion in a 5-10% fall in
seeks to operate 21 company’s chief While Sharma did not dis- followed a bustling weekend, position. How- of holidays, MICE
lounges and 3 executive, said. close the company’s financials, when most hotels had raised ever, unrelenting occupancy across and visas Thomas
hotels by 2025. The firm oper- it works on 15-20% margin. tariffs by 30%. Travel portals say this weekend saw 10-15% cancellations to the rains and floods all tiers Cook (India) Ltd.
To expand its presence, the ates three brands: Encalm “The sheer demand in traffic in According to travel portals, hills and a similar trend may continue the next weekend, too. MINT took a toll on the Yatra.com’s
company may restructure and Lounge in Delhi, Hyderabad, Delhi airport exceeded our this weekend saw 10-15% can- state’s tourism head of hotels,
raise institutional capital. Its and Goa; spa and meet-and- expectations. We may expand cellations to the hills and hotel the hills with 80% hotel room Taj Resort and Spa, in Shimla’s resulting in a 5-10% fall in occu- partnerships and affiliate busi-
expansion plan is in line with greet services in Delhi (it was our space and use technology owners may see a similar trend nights getting cancelled, said Theog, which hovered around pancy across all tiers, including nesses Rakesh Kumar Rana
Jyotiraditya Scindia’s 2022 earlier run by Plaza Premium to manage the number of visi- during the next weekend. Manu Sashidharan, head of ₹15,000-20,000 has fallen to value, premium and luxury said 60-65% of bookings for
announcement on how the Lounge, the international firm tors at credit card lounges.” It Between 11 and 17 August hotels and accommodations at ₹11,500 for the coming week- hotels. Himachal happens in the last
civil aviation ministry was plan- that exited India); and the pay- has pacts with most credit card online travel agency Cleartrip Flipkart-owned Cleartrip. end and the subsequent week. Given prevailing travel sen- minute, which has helped miti-
ning to increase the number of and-use premium business- brands. saw a huge drop in demand for Consequently, room rate for Similarly, the Oberoi-owned timents this season, some trav- gate mass cancellations.
08 MoNDAy, 21 August 2023
New Delhi GLOBAL LIVEMINT.COM

m MINT SHORTS Hilary threatens floods China tells banks

John Warnock, co-founder and to boost loans as
former CEO of Adobe, dies at 82
San Jose: Technology entrepreneur John Warnock, co-founder
of Adobe Inc, died on Saturday at age 82, the company said in a
statement. The cause of Warnock’s death wasn’t disclosed. War-
across south-west US recovery falters
nock created the San Jose-based company in 1982 with Charles Bloomberg
Geschke and served as chief executive officer until 2000 and as [email protected]
chief technical officer until his retirement in 2001. He was also
Expected to be first tropical storm to hit southern California in 84 years
C
chairman of the board for nearly three decades until 2017, shar- hina’s central bank and
ing that position with Geschke for most of that time. BLOOMBERG financial regulators met
with bank executives
AP and told lenders again to boost
Netherlands, Denmark commit [email protected] loans to support a recovery,
adding to signs of heightened
to delivering F-16 jets to Ukraine ENSENADA (MExiCo)
concern from policymakers

T
AFP
ropical Storm Hilary swirled about the deteriorating eco-
northward Sunday just off the nomic outlook.
coast of Mexico’s Baja California Authorities also urged for
peninsula, no longer a hurricane adjustments and an optimiza-
but still carrying so much rain tion of policies for home mort- Last week, PBOC cut rates
that forecasters said “catastrophic and life- gages at the meeting on Friday, most since 2020. BLOOMBERG
threatening” flooding is likely across a according to a statement from
broad region of the south-western US. the People’s Bank of China on July.
As of 8am Pacific time, Hilary was Sunday, without elaborating on The PBOC last week reduced
located about 220 miles (350km) south- the housing initiatives. a key interest rate by the most
southeast of San Diego, the National Hurri- Executives from China Life since 2020, a surprise move
cane Center reported. Hilary had maxi- Insurance Co and stock that came shortly before the
mum sustained winds of 70 mph (110 kph) exchanges were at the same release of disappointing data
and was moving north-west at 25 mph (41 meeting, where officials also for July showing growth in
Eindhoven (Netherlands): The Netherlands and Den- kph). discussed measures with the consumer spending, industrial
mark announced they will give F-16 warplanes to Ukraine, The Mexican cities of Ensenada and financial sector to prevent and output and investment sliding
in a long-awaited announcement that Ukrainian president Tijuana remained directly in the tropical reduce local government debt across the board and unem-
Volodymyr Zelenskyy called an important motivation for storm’s path, and meteorologists warned Hilary was downgraded from a hurricane to a tropical storm, but was still expected to risks. ployment picking up.
his country’s forces that are embroiled in a difficult coun- that despite weakening, the storm bring flash floods, mudslides, isolated tornadoes and high winds. AFP China has repeatedly urged Major financial institutions,
teroffensive against Russia. The timeline depends on how remained treacherous. its banks to increase lending to especially big state-owned
soon Ukrainian crews and infrastructure are ready for the One person drowned on Saturday in the nia’s mountains and deserts, from late Sun- US on Saturday, ahead of the storm’s support the economy. banks, must increase loan dis-
powerful US-made jets, Dutch prime minister Mark Rutte Mexican town of Santa Rosalia, on the pen- day morning into the afternoon. The expected Sunday border crossing. Fore- In July, Chinese bursements and
told Zelenskyy as the two visited a Dutch air base. AP insula’s eastern coast, when a vehicle was intense rainfall during those hours could casters warned it could dump up to 10 lenders extended Lenders extended avoid big fluctua-
swept away in an overflowing stream. Res- cause widespread and life-threatening inches (25cm)—a year’s worth of rain for the smallest the smallest tions in lending,
cue workers managed to save four other flash floods. some areas—in southern California and amount of amount of according to the
Record spending on renewables people, said Edith Aguilar Villavicencio, California governor Gavin Newsom pro- southern Nevada. monthly loans monthly loans in PBOC’s statement
the mayor of Mulege township. claimed a state of emergency, and officials “This does not lessen the threat, espe- since 2009, a fur- on Sunday. Regu-
led by China solar money: Report It was not immediately clear whether had urged people to finish their prepara- cially the flood threat,” Jamie Rhome, the ther sign of weak
July, a further sign lators and finan-
Beijing: The world is spending more money than ever in renew- officials considered the fatality related to tions before sundown Satur- US National Hurricane Cen- demand in the of weak demand cial institutions
able energy, most of it on solar power in China, according to a the hurricane, but video posted by local day. It would be too late by Hawaii’s island of ter’s deputy director, said economy that in economy should coordi-
report from BloombergNEF. China accounted for about half of a officials showed torrents of water coursing Sunday, one expert said. Maui is still reeling during a Saturday briefing to raises the risk of nate in reducing
record $358 billion global investment in renewable energy in the through the town’s streets. The hurricane is the latest from last week’s announce the storm’s down- prolonged defla- risks associated
first half of this year. The US was a distant second. BLOOMBERG Forecasters said the storm was still major climate disaster to blaze that killed graded status. “Don’t let the tion pressure. with local government debt
expected to enter the history books as the wreak havoc across the US,
over 100 people weakening trend and the Top leaders last week and strengthen such monitor-
first tropical storm to hit Southern Califor- Canada and Mexico. Hawaii’s intensity lower your guard.” pledged to expand domestic ing, the central bank said.
North Korean hackers target nia in 84 years, bringing flash floods, mud- island of Maui is still reeling and ravaged the Meteorologists also consumption and support the China is getting serious
slides, isolated tornadoes, high winds and from last week’s blaze that town of Lahaina expected the storm to churn private sector without detailing about clearing the off-balance
US-South Korean military drills power outages. Authorities issued an evac- killed over 100 people and up “life-threatening” surf and any new stimulus measures, sheet debt of local govern-
Seoul: North Korean hackers tried to infiltrate security-related uation advisory for Santa Catalina Island, ravaged the historic town of rip currents, including waves the latest in a series of rhetori- ments. The hidden debt comes
computers to obtain information on joint US-South Korean mili- urging residents and beachgoers to leave Lahaina, making it the deadliest US wildfire up to 40ft (12m) high, along Mexico’s cal attempts to boost confi- mainly from local government
tary drills that start Monday but apparently obtained no classi- the tourist destination 23 miles (37km) off in more than a century. In Canada, fire- Pacific coast. Dozens sought refuge at dence as markets sink. But offi- financing vehicles, companies
fied information, police in South Korea said. Malicious emails the coast. fighters on Saturday continued to battle storm shelters in the twin resorts of Los cials have so far resisted rolling that have borrowed on behalf
were sent from suspected North Korean hackers from April of Elizabeth Adams, a meteorologist at the blazes during the nation’s worst fire season Cabos at the southern tip of the Baja penin- out major stimulus efforts, of local authorities and that
last year to employees at a company involved in joint military National Weather Service San Diego office, on record. sula, and firefighters rescued a family in despite a pro-growth tilt sig- carry out infrastructure spend-
drills, the Gyeonggi Nambu Provincial Police said in a statement said rain could fall up to 3 inches (7.62 cen- Hilary already brought heavy rain and San Jose del Cabo after the resort was hit by nalled by the Communist ing on projects like roads and
on Sunday. BLOOMBERG timeters) an hour across Southern Califor- flooding to Mexico and the south-western driving rain and wind. Party’s Politburo at the end of railways.

HAVE
FUN
WITH FACTS CIN: L74999DL2017PLC322147
Registered Office: Hindustan Times House (2nd Floor), 18-20,

ON SUNDAYS Kasturba Gandhi Marg, New Delhi- 110 001

Ph.: +91-11-6656 1234; Fax: +91-11-6656 1270
E-mail: [email protected]; website: www.digicontent.co.in
CIN: L22100MH1981PLC024052
Registered Office: Unit 701 A, 7th Floor, Tower- 2, Indiabulls Finance Centre,
Senapati Bapat Marg, Elphinstone Road, Mumbai – 400 013; Ph: 022 44104104;
SIXTH (6TH) ANNUAL GENERAL MEETING OF DIGICONTENT LIMITED E-mail: [email protected]; Website: www.nextmediaworks.com

Catch the latest column of Notice is hereby given that the 6th Annual General Meeting (‘AGM’) of Digicontent Limited
is scheduled to be held on Tuesday, September 19, 2023 at 11:00 AM (IST) through
FORTY SECOND (42ND) ANNUAL GENERAL MEETING OF NEXT MEDIAWORKS LIMITED
Notice is hereby given that the 42nd Annual General Meeting (‘AGM’) of Next Mediaworks
Video-Conferencing/Other Audio-Visual Means (‘VC/OAVM’) without the physical presence of Limited is scheduled to be held on Monday, September 18, 2023 at 11:00 AM (IST) through

A
the Members at a common venue, pursuant to General circular(s) bearing no. 20/2020 dated Video-Conferencing/Other Audio-Visual Means (‘VC/OAVM’) without the physical presence of
May 05, 2020, 02/2021 dated January 13, 2021, 19/2021 dated December 08, 2021, 21/2021 the Members at a common venue, pursuant to General Circular(s) bearing no. 20/2020 dated
dated December 14, 2021, 02/2022 dated May 05, 2022 and 10/2022 dated December May 05, 2020, 02/2021 dated January 13, 2021, 19/2021 dated December 08, 2021, 21/2021
28, 2022 issued by the Ministry of Corporate Affairs (‘MCA Circulars’) and circular dated dated December 14, 2021, 02/2022 dated May 05, 2022 and 10/2022 dated December 28,
May 12, 2020, January 15, 2021, May 13, 2022 and January 05, 2023 issued by the Securities 2022 issued by the Ministry of Corporate Affairs (“MCA Circulars”) and Circular dated May
and Exchange Board of India (‘SEBI Circulars’), to transact the business set out in Notice 12, 2020, January 15, 2021, May 13, 2022 and January 05, 2023 issued by the Securities and
convening the AGM. Exchange Board of India (“SEBI Circulars”), to transact the business set forth in the Notice
In compliance with the above-mentioned MCA & SEBI Circulars and the relevant provisions convening the AGM.
A quiz on the week’s development. of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) In compliance with the above-mentioned MCA & SEBI Circulars and the relevant provisions
Regulations, 2015, the Notice of the AGM along with the Annual Report for FY 2022-23 will be of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements)
sent only by electronic mode to those Members whose email addresses are registered with the Regulations, 2015, the Notice of the AGM along with the Annual Report 2022-23 will be sent
Company/Depository Participants/Registrar and Share Transfer Agent (‘RTA’). only by electronic mode to those Members whose email addresses are registered with the
Manner of registering/updating email address: Company/Depository Participants/Registrar & Share Transfer Agent (RTA).
a. Members holding shares in physical form and who have not registered/updated Manner of registering/updating email address:
their KYC details including e-mail address with the Company or RTA, may register/ a. Members holding shares in physical form and who have not registered/updated
update such details by downloading the forms from the following link and submit the their KYC details including e-mail address with the Company or RTA, may register/
forms along with the supporting documents to KFin Technologies Limited (‘KFin’): update such details, by downloading the forms from the following link and submit
https://ris.kfintech.com/clientservices/isc/default.aspx#isc_download_hrd the forms along with the supporting documents to KFin Technologies Limited
or by writing to KFin Technologies Limited, Unit: Digicontent Limited, Selenium Building, https://ris.kfintech.com/clientservices/isc/default.aspx#isc_download_hrd
Tower B, Plot No. 31 & 32, Financial District, Nanakramguda, Serilingampally, Hyderabad, or by writing to KFin Technologies Limited, Unit: Next Mediaworks Limited, Selenium
Rangareddy, Telangana, India – 500 032 or by sending email to einward.ris@kfintech.com Building Tower B, Plot No. 31 & 32, Financial District, Nanakramguda Serilingampally
R-39 providing their name, folio number, scanned copy of the share certificate (front and back) Hyderabad, Rangareddy, Telangana India - 500 032 or by sending email to
and self-attested scanned copy of PAN and Aadhar Card in support for registering e-mail einward.ris@kfintech.com providing their name, folio number, scanned copy of the
address. share certificate (front and back) and self-attested scanned copy of PAN and Aadhar
Card in support for registering e-mail address.
b. Members holding shares in dematerialised mode and have not registered/updated their
e-mail address, can register/update their email address with the Depository Participants b. Members holding shares in dematerialised mode and have not registered/updated
where they maintain their demat accounts. their e-mail address, can register/update their email address with the Depository
Participant(s) where they maintain their demat accounts.
Pursuant to SEBI Circular no. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/37 dated
March 16, 2023, SEBI has mandated all listed companies to record PAN, Nomination, Contact Pursuant to SEBI Circular no. SEBI/HO/MIRSD/MIRSDPoD1/P/CIR/2023/37 dated March
details, Bank A/c details and Specimen signature for their corresponding folio numbers of 16, 2023, SEBI has mandated all listed companies to record PAN, Nomination, Contact
holders of physical securities. The folios wherein any one of the cited documents/details is details, Bank A/c details and Specimen signature for their corresponding folio numbers of
not available on or after October 01, 2023, such folios shall be frozen by the RTA. Relevant holders of physical securities. The folios wherein any one of the cited documents/details is
details and prescribed forms in this regard are available on website of the Company at not available on or after October 1, 2023, such folios shall be frozen by the RTA. Relevant
www.digicontent.co.in details and prescribed forms in this regard are available on website of the Company at
www.nextmediaworks.com
The Company is providing the facility to the Members to exercise their right to vote by
electronic means (i.e. remote e-voting and e-voting during the AGM) on the resolutions set The Company is providing the facility to the Members to exercise their right to vote by
forth in the Notice of the AGM. The instructions for joining the AGM through VC/OAVM and the electronic means (i.e. remote e – voting and e-voting during the AGM) on the resolutions set
process of e-voting (including the manner in which Members holding shares in physical form forth in the Notice of the AGM. The instructions for joining the AGM through VC/OAVM and the
or who have not registered their e-mail address can cast their vote through e-voting i.e. remote process of e-voting (including the manner in which Members holding shares in physical form
e-voting and e-voting during the AGM), forms part of the Notice of the AGM. or who have not registered their e-mail address can cast their vote through e-voting i.e. remote
e - voting and e-voting during the AGM), forms part of the Notice of the AGM.
Any person who acquires share(s) and becomes Member of the Company after the date
Any person who acquires share(s) and becomes Member of the Company after the date
of dispatch of Notice of the AGM and holding shares as on the cut-off date i.e. Tuesday,
of dispatch of Notice of the AGM and holding shares as on the cut-off date i.e. Monday,
September 12, 2023, may obtain the Login ID and Password by following the instructions
September 11, 2023, may obtain the Login ID and Password by following the instructions
as mentioned in Notice of the AGM or sending a request to NSDL at [email protected].
as mentioned in Notice of the AGM or sending a request to NSDL at [email protected].
Notice convening the AGM and Annual Report for FY 2022-23 will also be available on
Notice convening the AGM and Annual Report for FY 2022-23 will also be available on the
the website of the Company at www.digicontent.co.in; websites of the stock exchanges
website of the Company at www.nextmediaworks.com; websites of the stock exchanges
where shares of the Company are listed viz. BSE Limited at www.bseindia.com and
where shares of the Company are listed viz. BSE Limited at www.bseindia.com and
National Stock Exchange of India Limited at www.nseindia.com and website of NSDL at
National Stock Exchange of India Limited at www.nseindia.com and website of NSDL at
www.evoting.nsdl.com in due course.
www.evoting.nsdl.com in due course.
For Digicontent Limited For Next Mediaworks Limited
Sd/- Sd/-
hindustantimes htTweets www.hindustantimes.com Date: August 20, 2023 Arjit Gupta Date: August 20, 2023 Harshit Gupta
Place: New Delhi (Company Secretary) Place: New Delhi Company Secretary
LIVEMINT.COM NeWS Wrap MoNDAy, 21 August 2023
New Delhi 09

TWEETS & QUOTES

Shantanu Deshpande Elon Musk Tedros Adhanom Ghebreyesus
Velina Tchakarova CEO, Bombay Shaving Company CEO, Tesla Director-general, WHO
Director, AIES My advise to entrepreneurs is The sad truth is that Thank you India & all G20 countries
China will continue with the that pvt markets follow public there are no great “social for a constructive Health Ministers’
“death by thousand cuts” markets by 6-9 months so it will networks” right now. We Meeting, where I was encouraged
approach to Taiwan, that take some time for funding may fail, as so many by support for the: global initiative
means a slow but steady winter to go away...But good have predicted, but we on digital health, interim mecha-
penetration of socio-eco- firms will always get funded, you will try our best to make nism for medical counter measures,
nomic fabric of Taiwan may not get the value you want there be at least one joint Finance-Health Task Force

Home ministry top FESTIVE FEVER National e-comm

on graft complaints policy in final stage

T T
he highest number of corruption he proposed national e-commerce policy
complaints last year were against being formulated by the commerce and
employees of the Union home ministry, industry ministry is in the final stages and
followed by those working for the railways and no new draft policy will be issued now for
in banks, according to the Central Vigilance seeking views of stakeholders, a senior
Commission’s latest annual report. government official said.
In total, 115,203 such complaints were The Department for Promotion of Industry
received for all categories of officers and and Internal Trade (DPIIT) on 2 August held a
employees across central government detailed discussion with representatives of e-
departments and organisations in 2022, it commerce firms and a domestic traders’ body
stated. Of these, according to the report, 85,437 on the proposed policy.
were disposed of and 29,766 were pending— In that meeting, a broad level of consensus
22,034 for more than three months. emerged among the concerned stakeholders on
The CVC has prescribed a time-limit of three the proposed policy.
months for chief vigilance officers, who act as a “Now no draft policy will come. That exercise
distant arm of the probity watchdog, to examine is over now. We are just getting a final sign off,”
complaints, an official said.While the home the official, who did not wish to be named, said,
ministry received 46,643 complaints against its adding there will be a presentation of the
employees last year, 10,580 were received by proposed policy at the top level of the
the railways and 8,129 by banks, according to the government. PTI
report. PTI

Women participate in a tug-of-war competition as part of Onam celebrations at Ramakrishna Math, in Ernakulam on Sunday. The 10-day festival is
celebrated in honour of the legendary ruler Mahabali, who is believed to visit his subjects every year. PTI

Union roads minister Nitin Gadkari will launch the

Centre may set up 16th Finance Retail inflation touched a 15-month high of 7.44%
in July. HT
new car assessment programme.

Bharat NCAP to be
HT

Commission by November end ‘Rising crude price

a bit of a concern’
launched on 22 Aug
T
he Centre expects vegetable prices to start

U
nion minister for road transport and cooling off from next month with the
highways, Nitin Gadkari will launch the Terms of reference for the commission is being finalized, says finance secretary advent of new crops in the market, but
Bharat New Car Assessment Programme rising crude oil prices is a concern even though
(Bharat NCAP) on 22 August. it is still within the tolerable zone of $90 a barrel,
The programme is a step forward in the PTI The 15th Commission under N.K. Singh had For the current fiscal, the deficit is projected at a finance ministry official said. The official said
government’s commitment to improve road [email protected] kept the tax devolution ratio at 42%, at the same 5.9% of GDP, lower than 6.4% in the last fiscal that reduction in excise duty is not on cards and
safety through raising the safety standards of new deLhI level suggested by the 14th Commission. ended 31 March 2023. the government is driving infrastructure
motor vehicles up to 3.5 tonnes in India. The central government accepted the report of The finance secretary also said the government investment, and private sector capital

T
Bharat NCAP aims to provide a tool to the car he government is expected to constitute the commission, and accordingly, the states are will stick to the fiscal deficit target of 5.9% of the investment is yet to gather steam. He further
customers to make a comparative assessment of the 16th Finance Commission by end of being given 42% of the divisible tax pool of the Cen- GDP as robust tax, non-tax collections will help said that the Centre’s capital expenditure which
crash safety of motor vehicles available in the November, finance secretary T.V. Soma- tre during the period meet the spending was 28% of budget estimates at the end of June
market. nathan said. Finance Commission is a 2021-22 to 2025-26. requirement and quarter, will reach 50% by September end. In
Under this programme, car manufacturers constitutional body that gives sugges- The 15th finance The 15th Commission under N.K. make up for any the 2023-24 budget, the government had hiked
can voluntarily offer their cars tested as per tions on Centre-state financial relations. commission’s rec- Singh had kept the tax devolution shortfall in disinvest- capital investment outlay by 33% to ₹10 trillion
Automotive Industry Standard (AIS) 197. It suggests, among other things, the ratio in ommendations ment proceeds. in the current fiscal. The official further said that
Based on the performance of the car in the which tax is to be divided between the Centre and include the fiscal ratio at 42%, at the same level Although there a 6% rainfall deficit is unlikely to impact kharif
tests, car will be awarded star ratings for Adult states for five years, beginning 1 April 2026. deficit, debt path for suggested by the 14th Commission would be a shortfall sowing as the agriculture sector is resilient. The
Occupants (AOP) and Child Occupant (COP). “The Finance Commission is expected to be the Union and states, with respect to disin- retail inflation touched a 15-month high of
Potential car customers can refer to these star constituted by end of November because that’s the and additional bor- vestment, he said, 7.44% in July, a spike from 4.87% in June. PTI
ratings to compare the safety standards of statutory requirement,” he said. rowing room to states based on performance in this shortfall would be met by non-tax revenue
different vehicles and accordingly make their Terms of Reference (ToR) for the commission is power sector reforms. mobilisation.
purchase-decision. It is expected that the being finalized, he said.The previous Finance As per the glide path for fiscal consolidation, the “Disinvestment target is unlikely to be met.
demand for safer cars will increase, encouraging
the car manufacturers to comply with customer
Commission submitted its report on 9 November,
2020, for the five fiscals—2021-22 to 2025-26— to
government aims to bring down the fiscal deficit to However, I would say in aggregate the collective
4.5% of gross domestic product (GDP) by the amount between disinvestment and non-tax reve-
Reward for invoice
needs. SUBHASH NARAYAN the President. 2025-26 fiscal. nue is likely to be very close to the budget,” he said.
uploads on cards

I
ndividuals may soon get rewarded for
Porter expects biz 388 infra projects show cost overruns
uploading goods and services tax (GST)
invoice on a mobile app as the government is
to grow by 60% likely to launch the long awaited ‘Mera Bill
Mera Adhikar’ scheme soon.
which monitors infrastructure projects Under the invoice incentivisation scheme,

L
ogistics services startup Porter expects its worth ₹150 crore and above, out of 1,646 cash prize of ₹10 lakh to ₹1 crore monthly/
business to grow by 60% to reach about projects, 388 reported cost overruns and as quarterly could be given to individuals who
₹3,000 crore in revenue in the current many as 809 projects were delayed. upload invoice received from retailer or
financial year on account of expansion in the “Total original cost of implementation of wholesaler on the app, two officials said.
category, a top company official said. the 1,646 projects was ₹23,92,837.89 crore The ‘Mera Bill Mera Adhikar’ mobile app will
The Tiger Global and Lightrock ventures- and their anticipated completion cost is be available on both iOS and Android
backed startup expects to become operationally likely to be ₹28,58,394.39 crore, which platforms. The invoice uploaded on the app
profitable by December 2024, Porter co- reflects overall cost overruns of should have the GSTIN of the seller, invoice
counder and COO Uttam Digga said. ₹4,65,556.50 crore (19.46% of original number, amount paid and tax amount.
Porter at present provides instant delivery of cost),” the ministry’s latest report for July An individual would be able to upload a
up to 20 kg on two-wheelers, house shifting, 2023 said. According to the report, the Congress chief Kharge reconstituted the party’s maximum of 25 genuine invoices in a month
mini trucks, three-wheelers, etc for delivery of expenditure incurred on these projects till top decision-making body on Sunday. PTI on the app and the invoice should have a
goods and it has recently forayed into courier Expenditure incurred on these projects till July 2023 was ₹15,21,550.38 crore, which minimum purchase value of ₹200, an official
service. The company currently operates in
about 19 cities.
July 2023 was ₹15,21,550 crore. MINT was 53.23% of the anticipated cost of the
projects. However, it stated that the
Tharoor included said. PTI

A in revamped CWC
“There are two levers for us to grow the s many as 388 infrastructure number of delayed projects decreases to
business. One is category expansion. This gives projects, each entailing an 602 if delay is calculated on the basis of the
us more depth in the market where we operate. investment of ₹150 crore or more, latest schedule of completion.
G20 to strengthen
C
The second lever of growth is geography have been hit by cost overruns of more Further, it stated that for 345 projects ongress president Mallikarjun Kharge on
expansion, given the localised nature of our
business. The more points we serve, the
than ₹4.65 trillion in July 2023, an official
report said. According to the ministry of
neither the year of commissioning nor the
tentative gestation period has been
Sunday reconstituted the party’s top
decision-making body—CWC—with some health architecture
addressable opportunity becomes bigger and statistics and programme implementation, reported. PTI leaders of the G23 grouping, including Shashi

F
larger for us,” Digga said. PTI Tharoor and Anand Sharma, who were critical of inance and health ministers of G20 nations
the party leadership in the past among the 84 have agreed on continuous strengthening
members. of the global health architecture for
The all-important Congress Working pandemic prevention, preparedness and
Russia’s moon lander Luna-25 crashes after losing control Committee, formed 10 months after Kharge
took charge after defeating Tharoor, includes
response (PPR) through enhanced collaboration
between finance and health ministries of
several young faces who are below the age of member countries, India’s finance ministry said

R
ussia’s robot lander the Luna-25 spacecraft crashed into the moon after it 50, leaders from weaker sections and 15 in a statement following the joint finance and
had spun into uncontrolled orbit, the country’s space agency Roscosmos women. health ministers meeting on Saturday.
reported on Sunday. The new CWC has 39 regular members, 32 “Ministers welcomed the multi-year work plan
“The apparatus moved into an unpredictable orbit and ceased to exist as a permanent invitees, including some in- of the Task Force, approved under the Indian
result of a collision with the surface of the moon,” read a statement from the charges of state, and 13 special invitees, presidency,” the statement said. “Ministers
agency. Roscosmos said it lost contact with the spacecraft on Saturday after it including presidents of the Youth Congress, welcomed the reports developed by the Task
ran into trouble while preparing for its pre-landing orbit after reporting an the National Students’ Union of India, the Force under the Indian Presidency, since these
“abnormal situation ” that its specialists were analysing. Mahila Congress and the Seva Dal as ex-officio reports not only help members deepen their
“During the operation, an abnormal situation occurred on board the members. understanding of how future pandemics can
automatic station, which did not allow the manoeuvre to be performed with the Mukul Wasnik, Anand Sharma and Tharoor, impact the economy but also brought out the
specified parameters,” the agency said in a Telegram post. who were part of the group of 23 dissident gaps in existing pandemic response
The spacecraft was scheduled to land on the south pole of the moon on leaders who had written to then Congress institutional/funding arrangements,” it added.
Monday. The lunar south pole is of particular interest to scientists, who believe president Sonia Gandhi and had raised The Indian presidency hosted the G20 Joint
the permanently shadowed polar craters may contain frozen water in the rocks The spacecraft was scheduled to land on the south pole of the moon questions on the party’s leadership, are among Finance and Health Ministers Meeting, on 19
that future explorers could transform into air and rocket fuel. PTI on Monday. AP the regular members of the new CWC. PTI August in Gandhinagar, Gujarat. STAFF WRITER
10 MoNDAy, 21 August 2023
New Delhi LONG STORY LIVEMINT.COM

CAN BEATEN XIAOMI

REClaIM ITS CRowN?
The Chinese smartphone maker is on a downward spiral in India but is plotting a comeback

Sumant Banerji & Gulveen Aulakh

[email protected]
NEW dElHI

I
n May 2014, Manu Jain joined Xiaomi
as the India country manager. Back
then, the Chinese smartphone com-
pany operated from a small room in
Bengaluru. The brand was mostly
unfamiliar to Indians and Jain spent time
and effort helping people pronounce the
name as it should be.
“Shao-mee”, Jain told one of the writers
of this story, a few months after he had
joined.
He went on to exude a confidence any-
one would have been sceptical of. “We will
build a brand, and it will be nothing like
you’ve seen before. The devices will sell
themselves,” he had said.
They did. The company cracked the
market with the now-commonplace ‘flash
sales’ strategy where a limited number of
units are put up for sale online. Xiaomi’s
phones started selling within minutes. In
2016, the company crossed a billion dol-
lars in revenue. In 2018, it sold over 41 mil-
lion units, toppling South Korean phone
maker Samsung to become India’s No.1
smartphone brand. Defying pundits, the
company, whose name was shortened to
the easier sounding Mi, stayed in pole
position for five consecutive years.
Its fall, however, has been equally dra-
matic. By the December quarter of 2022,
Samsung had reclaimed its position as the
top smartphone brand. Xiaomi’s market-
share continued to slide in the first two
quarters of 2023—the company slipped to
the third position behind Vivo, another Chi-
nese phone maker. Unlikely, Xiaomi can
top the pecking order at the end of this year.
Xiaomi is facing multiple headwinds.
There is regulatory pressure from the
Indian government following rising ten-
sions with China; there’s a shift in the
phone market with consumers preferring
more premium smartphones; strong
demand in offline stores, an area still con-
sidered to be Xiaomi’s weakness, is
impacting sales; an exodus of executives
across the board has added to the woes.
Jain, the face of the company for many
years, left in January this year. A new man-
agement is in place and a bounce back
strategy is being chalked out for 2024. But File photo of employees working at the Xiaomi Corp. headquarters in Bengaluru. The company is facing multiple headwinds, from regulatory pressure to a shift in the Indian smartphone market. BLOOMBERG
rivals, including Vivo, have smelt blood.
They aren’t sitting idle either. The big
question is, can Xiaomi repeat the magic
of the past and reclaim its crown. Pathak, research director at Counterpoint consecutive quarters. In the build-up to mint
But first, let’s understand what fuelled Research, a market research firm. “They the festive season last year, Xiaomi was SHORT
FALLING STAR
the company’s meteoric rise in India. were striking the right chords by riding on carrying high inventory—that hurt. STORY Xiaomi was India’s largest smartphone brand till the quarter ended December 2022.
the trends driving the market.” Meanwhile, the sales mix of smart-
The Rise Features such as dual and triple cameras, phones changed (see chart). Entry level Marketshare in India's domestic smartphone industry (in %)
WHAT
T he rise was the result of a number of
enablers coming together.
The company worked on high-demand
better chipsets and more storage memory
helped Xiaomi stay ahead of rivals.
By 2020, the company was so well
phones, where Xiaomi ruled, are a declin-
ing market. Xiaomi phones start at ₹6,999
and the bulk of their sales are generated in India’s top smartphone brand 40
Xiaomi Samsung Vivo Oppo Realme

low-supply mismatch—the flash sales entrenched, that even the wave of anti- the sub-₹25,000 category. until last year, Xiaomi’s
model we mentioned before. This, in turn, China sentiment, following the clashes in “If the entry level segment starts grow- marketshare has been sliding. 30 31
created exponential word of mouth mar- Galwan, did not impact its prospects ing, Xiaomi is likely to benefit the most as The Chinese phone maker is
keting for the brand. By the time it much. It did lose market leadership to well. However, I do not see that happening currently No. 3 in the pecking
20 17 18
launched in India, it was already called the Samsung in the third quarter of 2020 but at least in the immediate future,” said order, after Samsung and Vivo. 16 17
‘Apple of China’, having become popular the company bounced back in the very Singh of IDC. 14 15
10
12 12
for selling iPhone lookalike devices for next quarter. The company’s product portfolio itself 11
a-tenth of the price. Xiaomi capitalized on Other companies did not anticipate was bloated. There are 14 smartphones WHY
this fervour and launched its first device in online sales to take off in the way they did, listed on Xiaomi’s website, five of which 0
India, the Mi3 in July 2014. said Navkendar Singh, associate vice pres- are out of stock and possibly being phased Multiple factors have led to Q1 2020 Q2 2023
The go-to-market strategy was through ident at IDC India, another market out. Another 17 are listed on its sub brand the fall. Regulatory scrutiny,
exodus of executives across the After clocking over 40 mn units annually Indians are buying more premium
digital marketplaces. Mi3 caused the web- research firm. “Even Vivo and Oppo were Redmi’s website; six of them are out of since 2018, Xiaomi’s shipments declined smartphones; the entry level market is
site of Flipkart, India’s largest online mar- focused on offline and Samsung took time stock. This could have been a fallout of the board, market shifts and a
25% last year. in decline.
ketplace, to crash. The first lot of 10,000 to understand the shift,” he added. supply chain shortages during the pan- bloated product portfolio have 43.6
Sales 41.1 41 40.4 Shipment growth rate (Q1 2023 vs Q1 2022)
phones was sold out in minutes. A week demic when chipsets were hard to get but added to its woes.
(in mn units) Price band (in ) Growth rate (in %)
later, another lot of 10,000 phones ran out The Fall demand was high. Xiaomi expanded the
30.3
of stock—this time in seconds. By the end
of the year, it had sold a million units.
Xiaomi had arrived.
T his brings us to the question: what
went wrong?
Just like there were multiple factors
range by adding products depending on
chipset availability.
Xiaomi also missed a trick. While the
NEXT 25.9 More than 45,000

30,000-45,000 60
66

Xiaomi caught up with Samsung, the that propelled Xiaomi to the top, there is company was ahead when it came to the The company is working on a 11.7 -33 20,000-30,000
market leader back then in terms of vol- more than one reason for its fall. transition to 4G, it is playing catch up now comeback strategy. It is betting
on affordable 5G smartphones 3.4 -34 10,000-20,000
ume market share, by 2017-end. It over- While the company survived the wave with 5G. Phones enabled with 5G are typi- 1
took the South Korean rival the next of anti-China sentiment from consumers, cally pricier and Xiaomi did not ade- and boosting its offline presence. -9 Less than 10,000
2014 2022
year and continued its ascent for the regulatory challenges hit it hard. In quately spend on brand building to lure Besides, it is increasing the local Source: Counterpoint Research, IDC India
next five years. December 2021, the income tax depart- the premium buyers, something Samsung value addition in manufacturing.
“They exploited the digitalization trend ment carried out searches in the com- managed well. SATISH KUMAR/MINT

and introduced the concept of flash sales pany’s premises on tax evasion charges. “The biggest challenge for Xiaomi will
as a marketing tool,” said Sanyam Chaura- Then, in April 2022, the enforcement be to sync with the new pace of the market online sales—this channel accounts for read the mind of the government but it is want to double it to 70%,” he added.
sia, technology market analyst at Canalys, directorate questioned Manu Jain on the while also increasing its mind share in the 66% of its sales. In comparison, for Sam- clear that if you are not adding more value Xiaomi outsources its assembly opera-
an advisory firm. “For a new player, Foreign Exchange Management Act premium segment,” said Pathak of Coun- sung, 57% of sales are generated in offline to your operations in India, there will be tions to six electronics manufacturing ser-
e-commerce platforms provided a jump- (Fema) violations. Allegedly, the company terpoint. stores. Beefing up offline stores is critical some action. Xiaomi needs to be wary of vices companies in India.
start as they could pene- remitted foreign cur- for Xiaomi since consumers prefer buying that,” said Singh of IDC. “The brand can
trate the market quickly rency to three overseas Rise again? the more expensive phones from a physi- Xiaomi claims to have always make a come-
Even if Xiaomi reconnects If the entry level segment
in a cost-effective man-
ner instead of the offline
retail channel route
itself with the pulse of the
entities in the guise of
royalty, violating the
central bank’s guide-
X iaomi’s recipe for a comeback is built
on fixing all the issues it is facing,
starting with decluttering its portfolio. It
cal retail outlet.
“We are aware that we are lagging
behind on our offline presence. So, we are
made good progress
towards localization in
phone assembly. Cur-
starts growing, Xiaomi is
back. They are focusing
on stabilizing the opera-
tions first instead of
which takes more time.” market, there is one major lines. The company wants to become a leaner and more nim- beefing it up,” Muralikrishnan said. rently, the company’s likely to benefit the most. driving the highest vol-
The composition of uncertainty that might upset refuted the allegations. A ble organization while expanding its off- The results would take time to show. domestic value addition However, analysts do not see umes. The new strategy
the market was also very fortnight later, the line footprint. Unlike five years ago, the competition is is between 17% and 18%, of focusing on 5G in the
different back then. its calculations—India’s enforcement directorate “We are going to the market this year tougher now and the demand has slowed. depending on the model. that possibility in the affordable segment
Annual smartphone seized ₹5,551.27 crore with a significantly cleaner and leaner It is going to be a slow and hard grind. Xiaomi has localized bat- (₹10,000–₹15,000)
sales in India were in the regulatory framework. belonging to Xiaomi portfolio,” Xiaomi India’s president Muralikrishnan realizes this and is in no tery charger, cable, cam- immediate future. seems to be good,” said
range of 60 million units Technology India Pvt Muralikrishnan B told Mint during a hurry to be the No. 1 this year. era modules, front and Pathak of Counterpoint.
in 2014—comparable to a good quarter’s Ltd under the provisions of Fema and recent interaction. The number of models “We are placing more long-term bets back covers. This year, it is working on “This is a very crucial period for Xiaomi
sales today. Besides Samsung, the domi- issued show cause notices to Jain and it will bring to market in 2023 could be for 2024 and beyond. If they play out as display modules, fingerprint sensors, and could be one of the most challenging,”
nant players were local brands like Lava, other executives. pared by a fourth. intended, we will go back to where we vibration motors and multiple die-cuts, he added.
Gionee, Karbonn and Micromax. These All this happened at a particularly bad There is also an increased thrust on came from,” Muralikrishnan said. besides PCB bare-board and battery cells. On 4 August, when the Redmi 12 5G
were considered weak in technology and time for the company—the demand for affordable 5G handsets. On 1 August, it Even if Xiaomi reconnects itself with “Our goal for 2023-26 is to increase went on sale on Amazon India, the entire
the onset of transition to 4G provided the smartphones had begun to taper. In the launched the Redmi 12 5G at ₹11,000, the pulse of the market, there is one major value addition by 50% by broadening and lot was sold out on the first day itself. As
opening for Xiaomi to exploit it. second quarter of 2022, sales recorded a making it one of the cheapest 5G phones uncertainty that might upset its calcula- deepening components sourced locally,” per Xiaomi, the model became the largest
“Riding on the experience from China sequential decline, which deteriorated available in the country. tions—India’s regulatory framework. How Muralikrishnan said. “Now, around 35% of selling 5G phone in the country.
where 4G had already started, Xiaomi got into a year-on- year decline the next quar- Meanwhile, Xiaomi has expanded its the regulatory framework shifts will have non-semiconductor bill of material is To bounce back, the company will need
its product strategy right,” said Tarun ter. Since then, sales have fallen for four offline presence. Yet, it is highly reliant on a major bearing, going ahead. “We can’t sourced locally. In two to three years, we many more such days.
LIVEMINT.COM MINT MONEY MoNDAy, 21 August 2023
NeW Delhi 11

Diapers, doctors, schooling: know POWER

POINT
the costs of raising a child in India NITESH BUDDHADEV

We welcome your views and comments at

[email protected]

HOW EXEMPTIONS
Parents need to shell out ₹25-50 lakh on school fees over the years, another ₹15-50 lakh on higher education
FOR INSURANCE
Jash Kriplani
[email protected]
The cost of parenthood: education, healthcare and more
studies, Valecha is planning to soon start
a systematic investment plan (SIP) via
mutual funds.
POLICIES WORK

F
or many people, the joys of Raising siblings
parenthood do not last long. Bengaluru-based Lekha Tejas, 35, Taxation of insurance policies
For the first two years, they and her husband Tejas SR, a lawyer, ULIP X Insurance A Insurance B Insurance C
get busy with regular paedia- have a five-and-a-half-year-old son. Date of issue 1 Apr 2021 1 Apr 2023 1 Apr 2023 1 Apr 2024
trician visits, check-ups, fol- Lekha gave birth to her second child Annual Premium ₹1.4 lakh ₹1 lakh ₹1.5 lakh ₹3 lakh
low-ups, vaccinations, etc. Then, it is eight months ago.
time to worry about their children’s Lekha, a homemaker, has enrolled Sum assured ₹10 lakh ₹10 lakh ₹15 lakh ₹30 lakh
education—starting with preschool her older child in a Montessori school Consideration received ₹6 lakh ₹6 lakh
and kindergarten and finally a college that charges annual fees of ₹80,000 on surrender (1 July 2033)
degree. (including ₹5,000 for books). That, Consideration received
The cost of education in India is though, is cheap compared to trans- on maturity (1 Nov 2034)
₹18 lakh ₹34 lakh
absurdly high, particularly if one opts PAWAN VALECHA (40) VAIBHAV AGGARWAL KAPIL JAIN (40) LEKHA TEJAS (35) portation costs. The school is located
for private schools. Typically, parents WITH WIFE AND SON (38) WITH SON WITH FAMILY WITH HUSBAND far from their house. So, the couple

T
spend ₹25 -50 lakh, depending on the shell out ₹1.8 lakh per annum on fuel he Finance Act, 2023, amended section 10(10D) of the
Mumbai Delhi Indore Bengaluru
type of school and the course offered. and driver costs. Income Tax (I-T) Act to remove the exemption available to
be it state, central or international Child/children: 13-year-old daughter, 5-and-half-year-old son#, They spend ₹25,000 annually on sum received from a life insurance policy in case the aggre-
6-year-old-son
boards. Higher education, though, 8-year-old son 5-year-old-son eight-month-old son clothes for their son. As for the gate premium for all policies issued on or after the 1 April exceeds
depends on the stream that children School costs (annually):* ₹80,000 younger child, there are hand-me- ₹5 lakh. On 16 August, the Central Board of Direct Taxes issued a
₹1.56 lakh ₹1.5 lakh for each
decide to pursue after school: engi- ₹1.72 lakh (+1.8 lakh in car & fuel) downs that includes toys. circular clarifying this. If premium is payable for more than one
neering, medicine, law, or account- Extra-curricular activities: Expenses for the newborn include life insurance policy, issued on or after 1 April, the exemption
ancy. The fees for this could range ₹3,200/month ₹2,500/month for son NA ₹16,000 spent on diapers so far. They under the said clause shall be available only with respect to such
₹2,000/month
from ₹15 lakh to as much as ₹50 lakh. Summer vacation camp: have also hired a nanny for ₹15,000 policies where the aggregate premium does not exceed ₹5 lakh for
And then there are specialization ₹5,000-6,000 ₹5,000-6,000 for son ₹8,000-10,000 per month. any of the previous years during the term of any of those policies.
₹4,000
courses, including postgraduation. Clothes (annually) ₹30,000-36,000 “The cost of regular check-ups, For instance, Jayesh holds insurance policy A issued on 1 April
That means more fees! ₹36,000 ₹25,000** medicines and vaccinations work out and pays premium of ₹5 lakh for 10 years until 1 April 2032. Then
₹20,000-24,000 for each
If inflation is factored in, the costs to around ₹50,000-55,000 per year he purchases insurance policy B on 1 April 2033 and pays pre-
Medical: ₹15,000-20,000 p.a. ₹40,000 p.a. for new
will soar. For example, a five-and-a- ₹10,000-12,000 p.a. ₹24,000 p.a. born/₹18,000 for older son
for the newborn. As for the older one, mium of ₹5 lakh for another 10 years until 1 April 2042. On 1 April
for each
half-year MBBS (Bachelor of Medi- it is now around ₹18,000,” Lekha 2043, he receives ₹50 lakh from life insurance policy A on matur-
cine and Surgery) course could today Higher education says. Every year, she spends ity and on 1 April 2046 he gets ₹60 lakh from insurance policy B
investments: To start SIP; Provisioning in SIP of ₹20,000 p.m.##; SIP of ₹13,000 p.m.
easily cost around ₹50 lakh. By 2030, target ₹50-60L overall finances target ₹1 cr-₹1.5 cr for older son ₹25,000-30,000 on toys for her son. on maturity. In this case, the consideration received from both
it could touch ₹80 lakh. Similarly, a “I also buy story books for my son; he the policies A and B shall be exempt as the aggregate of the annual
four-year engineering degree which Current total costs loves it and wants us to read them out premium payable for the life insurance policies A and B together
(approx.): ₹2.8 lakh p.a. ₹3.19 lakh p.a. ₹4.3 lakh p.a. ₹3.5 lakh p.a.^
costs around ₹15 lakh today can go up to him. These books cost us did not exceed ₹5 lakh for any of the previous years during the
to ₹37 lakh by 2030. If international *Includes uniform, books & transportation fees, **uses older son's clothes for the new born child, #Spends ₹25,000-30,000 on buying ₹5,000-6,000 annually,” she says. term of the policies.
toys for older son and ₹5,000-6,000 on story books, ##plans to increase it to ₹40,000; total costs excludes family trips & child delivery
education comes into the equation, costs; ^Include cost of diapers ₹16,000 p.a. and nanny cost ₹15,000 p.m. As for her son’s higher studies, The above amendments are for life insurance policies other than a
the cost could rise significantly. Lekha says they are investing ₹13,000 unit-linked insurance policy (ULIP). Let’s take the example of Rekha
Some people start investing for their How costs of raising a child change over different stages in a mutual fund SIP. who holds the following life insurance policies and ULIPs (see graphic).
child’s higher studies soon after they Schooling years
Indore-based Kapil Jain, 40, and The surrender value of ULIP X will be
become parents. Mint caught up with
Assuming starting fee of ₹1 lakh & 3% p.a. hike
his wife Neha, a homemaker, spend a Any amount exempt under section 10 (10D) since the
a few of them to find out how they are total of ₹3 lakh annually on school received for a annual premium does not exceed ₹2.5
managing their children’s education, Infant and toddlers Fees paid till pre-primary ₹3.09 lakh fees for their children—a 13-year-old lakh during the term of the policy. Fur-
both present and future studies. C-section delivery pvt. Fees paid for class 1-8 ₹12.8 lakh daughter and a five-year-old son. term insurance ther, the consideration received under
Raising a single child hospital (₹1 lakh) class 9-10 ₹4.5 lakh For extra-curricular activities, Jain, policy shall the life insurance policy A during the pre-
Delhi-based Vaibhav Aggarwal, 38, Higher education a chartered accountant, pays around always be vious year 2033-34 shall also be exempt.
Medical inflation class 11-12 ₹5.14 lakh
and his wife Neha spend ₹1.56 lakh rate @14% Domestic ₹2,500 per month for his son’s karate exempt However, since the sum of premium of life
Cumulative fees ₹25.5 lakh ₹15 lakh-50 lakh
annually on school fees for their six- classes and ₹6,000 for his daughter’s insurance policies A, B and C exceeds ₹5
year-old son who is in class II. This Costs in 10 years Assumed transition fees of
Education inflation swimming classes. He has also lakh during the term of these policies,
₹8,000 in annual costs
includes tuition and school bus fees, ₹3.7 lakh (pre-primary-primary-second- rate @11% enrolled her in dancing classes for Rekha should analyse whether she should claim the exemption or not.
besides the costs on uniforms and ary-sr. secondary) Costs in 10 years ₹1,500 per month. During summer If she claims the exemption for policy A then for the previous year
books. Aggarwal, assistant professor ₹43 lakh-1.4 crore vacations , his son attends summer 2034-35, the consideration for life insurance policy C alone shall be
(accounting and finance) at Jindal International (US) camps at a cost of ₹5,000-6,000. The exempt under section 10(10D) as the sum of premium of life insurance
Global Business School, says the fee is Paediatrician (current costs) Current costs Jains spend ₹2,500-3,000 per month policies A and C does not exceed ₹5 lakh in any of the previous years
less compared to other schools in Delhi. City fees/visit (4-year UG) on clothes for each of their children. during the term of these policies. Life insurance policy C is preferred
Neha is an assistant professor (engineer- ₹2.7 crore Almost every month, the couple over life insurance policy B being more beneficial. However, if the con-
Up to first 18 months Mumbai ₹500-2,500
ing department) at a college in Delhi. Vaccine costs
Inflation rate @10% buys gifts worth ₹1,000-1,200 for the sideration from life insurance policy A is not claimed as exempt in pre-
The couple have also enrolled their (pvt. hospitals) Delhi ₹500-2,500 Costs in 10 years children to spend on birthdays of vious year 2033-34, then the consideration from both the life insur-
son in dance (fees of ₹26,400 annu- ₹7 crore their friends. Jain spends around ance policies B and C shall be exempt.
₹60,000-80,000 Bangalore ₹300-3,000
ally) and swimming classes (₹12,000 Based on RIA estimates ₹25,000 on his son’s birthday bash The above provisions for taxability of consideration from
annually). They also send him to sum-
approx. Chennai ₹200-1,500 every year. His daughter, though, insurance policy with premium exceeding ₹5 lakh shall not apply
mer camps during the school vaca- Current costs are assumed estimates GRAPHIC: PARAS JAIN prefers to visit a restaurant with her in case of any sum received on the death of a person. Under term
tion every year. That costs them close friends and the celebrations life insurance, policy amount is paid to the nominee in case of the
another ₹5,000-6,000. usually cost ₹7,000-10,000. death of the person insured during the term of the policy and no
Aggarwal says he spends around son’s friends. They also have a budget Valecha, a chartered accountant, Birthday celebrations are a costly Jain says the healthcare expenses amount is paid to anyone if the insured person survives the policy
₹24,000 yearly for his child’s medi- of ₹36,000 annually for buying new spends ₹1.72 lakh annually on his son’s affair for the Valechas. And it depends on for each child comes to around tenure. Hence, any sum received under a term insurance policy
cation, including vaccinations. The clothes for their son. schooling. This includes tuition fees, whether they are celebrating their son’s ₹15,000-20,000 annually. The Jains shall always remain exempt irrespective of the premium paid.
costs are also higher because doctors Mumbai-based Pawan Valecha and transportation, uniform and books. birthday at home or outside. Valecha also plan at least one outstation trip Further, the premium paid for such policies shall not be counted
in Delhi charge hefty consultation his wife Kiran, a homemaker, visit His son has also enrolled for abacus says it costs around ₹25,000 to host a every year. The family vacation costs for checking ₹5 lakh limit. It is also clarified that the premium
fees. The couple also spend ₹40,000 their hometown in Rajasthan every classes (fees of ₹11,000 annually) and birthday party at home and around around ₹1.25-1.5 lakh. For his chil- payable or aggregate premium payable for life insurance policies
on their child’s birthday celebrations. year with their eight-year-old son. dance classes (₹12,000 annually). Dur- ₹50,000 if it is at a venue outside. Val- dren’s higher studies, Jain has started shall be exclusive of the amount of the goods and service tax
That doesn’t include the ₹1,600 spent “We also like to travel to other parts in ing summer vacations, he goes for echa also spends ₹1,000 almost every an SIP in mutual funds of ₹20,000. (GST) payable on such premium.
every month on gifts and partywear the country. It costs us around cricket and drawing classes. And that month on gifts for his son’s friends on (For an extended version of this (The examples of Jayesh and Rekha are hypothetical.)
for birthday celebrations of their ₹25,000 per trip,” Valecha says. costs Valecha ₹4,000. their birthdays. As for his son’s higher story, go to livemint.com) Nitesh Buddhadev is the founder of Nimit Consultancy.

Best home loan rates What is the taxation on rental income?

A home loan is probably the biggest loan that one takes. Not only in terms of the loan
amount, but also tenure, which can be 15 years or more. The total final amount that one
pays can be double of what was borrowed. But a home loan is among the cheapest loans Parizad Sirwalla
available, and usually it is the only way a person can buy a house. A home loan is called
a ‘good’ loan because it helps you acquire a tangible asset that can appreciate over the I want to rent out my 1-bhk
long term. It makes sense to buy a house if you plan to live in it. Given the fact that the house and plan to move
construction of several housing projects in India continues to be delayed or stalled by into a 2-bhk apartment
many years, financial advisers say that one should buy a ready-to-move-in house. Here’s a taken on a higher rent.
look at the lowest home loan interest rates of some leading banks. What will be the tax impli-
Loan amount = ₹30 lakh. Tenure = 20 years cation on this?
—Name withheld on request
Interest
Lender EMI (₹) Processing fee The taxability of income
rate (%)
earned by you from let-out resi-
UCO Bank 8.45-12.60 25,940-34,296 0.5% (min. ₹1,500 and max. ₹15,000) dential house property and the
tax deductions available towards
Bank of India 8.50-10.75 26,035-30,457 0.25 to 0.50% (min. ₹1,500 and max. ₹40,000)
rent paid, are dealt under sepa-
Indian Bank 8.50-10.10 26,035-29,150 Up to 0.25% rate provisions, under the
Indian income-tax laws. ASK MINT In case you are not in receipt reside or perform your
Punjab National Bank 8.50-10.10 26,035-29,150 Nil up to 31 March 2024 Rental income from a let- m I N C O M E TA X of HRA, then deduction under employment or carry your
Union Bank of India 8.50-10.80 26,035-30,558 0.50% (max. ₹15,000) + GST out residential house property section 80GG of the Act may business or profession; no
is chargeable to tax under the be available from gross total accommodation is owned by
HDFC Bank 8.5-9.40 26035-27768 For salaried: Up to 0.50% or ₹3,000 whichever is higher + applicable taxes* head ‘income from house conditions: income, subject to least of the you at any other place, which is
property’. Deductions towards —In case you are a salaried following: rent paid, less 10% either considered as self-occu-
Canara Bank 8.55-11.25 26,130-31,478 0.50% (min ₹1,500 and max. ₹10,000);**
municipal taxes, standard employee and are in receipt of of your total income; or ₹5000 pied or deemed let out for the
Central Bank of India 8.55-9.35 26,130-27,671 Completely waived till 31 Dec 2023 deduction of 30% and interest house rent allowance (HRA) per month; or 25% of your total purpose of computing income
on borrowed capital are availa- from your employer, then, as income. from house property; and a
IDBI Bank 8.55-12.25 26,130-33,557 ₹5,000 to ₹15,000 ble to the extent prescribed. per the provisions of section Total income shall be the declaration in Form 10BA is
Bank of Baroda 8.60-10.60 26,225-30,153 Up to 0.50%. 100% waiver,*** The house property income is 10(13A) of the Income Tax Act, taxable income before allow- filed by you in the prescribed
taxable at applicable slab rates, an exemption may be available ing deduction for any expendi- manner, for claiming the
Bank of Maharashtra 8.60-10.80 26,225-30,558 0.25 (max. ₹25,000) plus applicable surcharge and for the rent paid against the ture under this section. deduction.
State Bank of India 8.70-9.65 26,416-28,258 0.35% (min. ₹2,000 and max. ₹10,000) + GST#
cess. There are specified pro- HRA received by an employee, The following additional Parizad Sirwalla is partner
visions for dealing with loss calculated as least of the fol- conditions are to be fulfilled and head, global mobility servi-
Karnataka Bank 8.75-10.43 26,511-29,810 0.25% from house property if any, lowing: actual HRA received; for availing such deduction: ces, tax, KPMG in India.
Data taken from banks' websites as on 17 August 2023. EMI range is indicative and calculated on the basis of interest rate range; it may include other depending upon the tax or rent paid, less 10% of basic rented accommodation
charges and fees. Actual applicable interest rate may vary based on the credit profile of the loan applicant. Special Processing fee is only applicable for regime followed by the indi- salary and dearness allowance, should be occupied by you for Do you have a personal
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PARAS JAIN/MINT Source: MyMoneyMantra.com industry experts.
ject to fulfilment of relevant or Delhi or Chennai). place where you ordinarily
12 MoNDAy, 21 August 2023
New DelhI VIEWS LIVEMINT.COM

OUR VIEW GUEST VIEW

ISTOCKPHOTO

Improved governance can keep

capital flowing into our startups
A culture of accountability, ethical conduct and transparency has become particularly important

foreign capital will go elsewhere; at the have not internalized the value of gov-
very least, risk premiums will rise. ernance and complete disclosures.
There are three critical (and related) Solution: Use standard disclosure
governance issues to be tackled. These and financial reporting practices;
are particularly acute in relation to institute regular internal audits; and
startups. In each case, just naming the hire reputable third-party audit and
problem suggests a solution. compliance firms.
Accountability and conflicts of interest: Checks and balances: Many startups
Entrepreneurs naturally want to make are the brainchildren of young entre-
VIVEK PANDIT their companies appear attractive to preneurs with more optimism and
is a senior partner at McKinsey & would-be investors. However, there are impulsiveness than business experi-
Company’s Mumbai office. instances of questionable claims and ence. In such cases, company boards
overly optimistic financial reporting. need to be the sober adults in the room,
When investors buy into such scenarios not cheerleaders. When McKinsey

End the death penalty:

at equally optimistic multiples, they looked at the board composition of 83
have an obligation to question the Indian unicorns, however, it found that

I
ndia has racked up 108 ‘unicorns’— underlying assumptions. Once 61 had no independent board members,
the third-most in the world, after the invested, though, they have every and eight had only one. As a result,
US and China. Private investment in incentive to support and bolster them. difficult issues are not raised as often or

Its basis has collapsed the form of venture capital and private
equity has been to the tune of $246
billion from 2018 to 2022. Over this
period, Indian firms accounted for $1
Public markets often take a less optimis-
tic view and a weak public valuation can
inflict damage on a company culture
that thrives on unbridled optimism.
in as timely a manner as they should be.
The fundamental problem here is that
when board members have a stake in
supporting the business at the valuation
out of every $4.40 of Asian venture cap- Solution: Create a culture of ethical claimed, they may find it difficult
ital. The average investment size has conduct and transparency early. That to provide dispassionate guidance and
India should make a substantive break from the past in favour of justice by consigning the almost quadrupled in the last decade, means crafting formal policies on gen- oversight.
and revenue-multiple valuations have eral conduct and whistle-blowing to Solution: Among India’s unicorns,
gallows to history. It’s evident that the plank on which executions rest has lost its rationale more than doubled. The price of good instil a mindset of doing the right thing board composition changes once they
ideas has never been higher. the right way. Many startups have an file a red herring prospectus for a public
But the gush has slowed. According ‘attacker’ mindset that encourages share issue (38% independent directors)
to Venture Intelligence, both the num- them to throw out the rulebook in the and then when their shares are listed

I
ndia should abolish the death penalty. It can promise 100% accuracy in affixing guilt, ber of deals and amount invested fell by name of speed. But as these businesses (54% independent directors). However,
would mark a substantive break from the regardless of intent. Imperfection is a given. 60% and 79%, respectively, in the first evolve, their culture and governance there should be one-third or more inde-
half of this year. One reason for this is will need to take centre stage. pendent external directors much earlier
Raj legacy, a bigger one than the laws laid Under current norms set by the Supreme that many companies have not met Disclosure practices: It is not necessa- in the startup journey.
down after the British Crown took charge Court, the penalty applies only to “rarest of expectations. Others have seen their rily wrong to hire a cousin’s design firm, One of India’s strengths is its ability to
from East India Company in the wake of rare” cases. While this caveat holds wisdom to valuations—often 25, 50 or even 100 lease space from a spouse’s real estate learn from its mistakes. For example,
1857’s horrors. People had been blown to the extent it aims to reduce hangings (a ghastly times revenues—tumble after being business, or support a special cus- some missteps have translated into
bits by cannon balls and left hanging from trees old method that calls for a debate of its own), it exposed to public markets. Many inves- tomer’s charity. But companies and effective regulation, such as curbs on
tors are therefore keeping their powder investors need to report such transac- the use of unsecured lines of credit and
for their alleged roles in the Uprising. Now it fails to ease a categorical burden placed on our dry, and some are focused on ‘insider tions transparently, and defend them rules on security for gig workers. But
took a trial in court and determination of guilt, conscience. The fact that an innocent life can rounds’ to tide over potential down when questioned. Companies with a this merely plays catch-up. It would be
at least on paper, but those charged with grave potentially be snuffed out by a court order rounds. strong governance culture try to avoid far more effective for founders and
offences could still be put to death by the state implies that our tacit approval of it has been However, what I am hearing is that even the appearance of impropriety. investors to self-regulate and raise their
apparatus. What freedom in 1947 brought was taken for granted. Alas, too little sleep is lost India remains a great growth story with In addition to disclosure slip-ups, game by themselves. Entrepreneurs
world-class entrepreneurs, but the misinformation and reporting irregu- must recognize that sound governance
a substantial measure of justice in general, but over this assumption of democratic consent. same cannot be said of governance at larities are problems. There have been is as important as business model
self-rule has not yet translated into a ban on An unjust noose around a neck might be their companies. And that matters instances of undisclosed income and robustness and market share. Investors
this particular practice. The advocacy of such a cruel, it has been argued, but what’s ideal because about 95% of private alterna- under-funded liabilities, including pen- should insist on transparency, account-
ban has long stumbled on the shock of actual could also become the enemy of what works, tive investment from 2018 to 2022 sion contributions. Not only do such ability and independent boards. After
crimes in evidence, some of them so shocking should Indian gallows be consigned to history came from outside India. Governance at infractions affect business value, these all, the reputation of a company is as
startups needs to get better, or some cases also suggest that the founders sound as the reputation of its leaders.
that any ‘leniency’ is misread as sympathy for only to witness a surge in encounter killings
perpetrators. The case against capital punish- by police forces under pressure to uphold
ment, however, is based not on emotion, but law-and-order. Lenient law, in this view,
reason. As the country redrafts its penal code, could lead to harsher policing on the ground,
it’s about time this reform found the legislative while stiff penalties in high-profile cases
backing it deserves. serve to quell vigilante impulses (or ‘satisfy’
Across societies and ages, the penalty in popular demand). This argument may hold www.livemint.com
New Delhi, Mumbai, Bangalore, Kolkata, Chennai, Ahmedabad, Hyderabad, Chandigarh*, Pune* Wednesday, August 21, 2013 Vol.7 No.199 `3.00 in Delhi­NCR/`4.00 outside Delhi­NCR 24 PAGES
+ 4 MARKETS PAGES

question has survived on its reputed capacity pragmatic appeal, but it is deeply flawed. At CORPORATE:Diageo cleans
the stables at USL >8
AVIATION: Safety audit stalls global
expansion of Indian airlines >6

to deter the most unwanted of acts. What one level, it assumes that it’s okay for the rule CONTENT PARTNER
OBITUARY: Elmore Leonard, who refined
the crime thriller, dies at 87 >5
MARK TO MARKET: All indicators
spell trouble >M1

might have worked in olden-day contexts of law to be held hostage by social conditions,
SENSEX 18,246.04 æ 61.48 NIFTY 5,401.45 æ 13.30 DOLLAR `63.23 Æ `0.10 EURO `85.01 Æ `0.72 GOLD `31,365 ® OIL $110.05 Æ $0.15

SUBHAV SHUKLA/PTI
SETTLEMENT CONCERNS
RBI shifts QUICK EDIT

As first payout stance, plans A bunch of

of tyranny, however, would surely have lost never mind its supremacy on paper. At falls short, FMC
warns NSEL
to infuse
liquidity
lost files
I
B Y D INESH U NNIKRISHNAN
[email protected]
t is surprising that coal
minister Sriprakash
Jaiswal, a honourable man
if there was one, is being
hauled over the coals for
No man should be put to
force as human rights began to get encoded, another, it ignores the possibility of police
························· his admission, before
MUMBAI Parliament, that some files

T he Reserve Bank of India on the allotment of coal

death, even as an example,

Exchange removes credibility and reputation (RBI) said late Tuesday blocks that have since
Anjani Sinha as MD; which is a key ingredient in
meeting the criteria for ‘fit and
that it would infuse `8,000
crore into the country’s cash-
turned controversial
enough for the Supreme
Mint analysis shows proper’ person. In the eventual- strapped banking system by Court to supervise the
most members do not ity of you losing your status as a buying government bonds in investigation into the
fit and proper person, you can- the secondary market through affair, are missing. Jaiswal
have assets to pay up

legally and socially, and fear ceded space as a reforms to better align policing incentives
not continue to hold director- so-called open market opera- himself and the Prime
ship or share holding in any of tions or OMOs. Minister’s Office are under
B Y A NIRUDH L ASKAR & the recognized futures com- The move will push down a cloud.
K HUSHBOO N ARAYAN modity exchange.” bond yields and also make Still, anything could
························· “The Board should take com- credit available for the indus- have happened to these

if he can be left to live

MUMBAI plete responsibility for the com- try and analysts see the central files. They could have

D oubts have arisen over

National Spot Exchange
Ltd’s (NSEL) ability to
pletion of settlement of all out-
standing trade at NSEL,” the
FMC letter said, warning of
bank’s move, coming in the
wake of its recent attempts to
tighten money supply so as to
spontaneously combusted,
as indeed, some varieties
of coal do.

motive for conduct to civil concerns. Today, its with the statute, so that trials are that much
stick to the schedule for settling “consequential actions” if it stem the depreciation of the The rats (and there are
around `5,600 crore of dues failed to heed the regulator’s di- rupee, as a sign of its long- rats in government
arising from its abrupt decision rectives. term emphasis on growth. buildings, after all) could
to suspend trading on 31 July, On 14 August, the exchange RBI also allowed banks, as a have gotten to them.
with the exchange falling short released a schedule for payouts one-off, to reshuffle their bond Anti-corruption activists
in making the first payment on over the next 30 weeks. The portfolio to shield them from or the opposition parties
Tuesday, and Mint’s research payouts were to be made every huge depreciation losses even could have smuggled them

without danger to society.

showing that the 24 members Tuesday, with the first on 20 Ambitious scheme: UPA chairperson and Congress president Sonia as high speculation and panic out in a bid to discredit
who owe NSEL money lack the August. Gandhi (centre) and Delhi chief minister Sheila Dikshit (left) present a ruled India’s financial markets Jaiswal and the Prime

efficacy as a deterrent stands in doubt. Studies likelier to be fair and fake encounters fewer.
financial wherewithal to ante “The figure is very disap- national food security card to a woman at the launch of the food on Tuesday, sending the bat- Minister.
up. pointing and the situation is of security programme in New Delhi on Tuesday. The scheme, an And the role of aliens,
The exchange, which re- grave concern. What was given important talking point for the Congress in the coming state and TURN TO PAGE 24® whose diet includes
ceived a regulatory warning on in the schedule, it has fallen general elections, was also launched in Haryana and Uttarakhand. The cellulose found in paper,
Tuesday, said its board had “re- short. This does not make any- legislation, expected to come up for discussion in Parliament this ALSO SEE cannot be ignored.
moved” managing director An- one happy and is very disap- session, had wide­ranging support across parties, although there are Why blame the
jani Sinha and six senior execu- pointing,” Anand Rathi, chair- several points of difference, most involving making the scheme more >Non­essential luxury items may minister?
tives from “existing responsibil- man of Anand Rathi Financial inclusive and generous. See P4 face higher duties >P5
ities” and launched its own in- Services Ltd, said about the first

have shown only weak links between rates of Meanwhile, research suggests that prison
vestigation into the crisis. It payout.
added that the team would still The payouts were to be pre-
be “responsible for the recov-
ery”.
ceded by pay-ins made by the
members every Friday starting Ambedkar,
The Forward Markets Com-
mission (FMC), the commodity
futures market regulator, ques-
16 August, but records with the
ministry of corporate affairs
(MCA) show that most of the 24
the rupee and
tioned the credibility of NSEL
after the exchange fell short of
members do not have assets or
cash in hand to meet their com-
our current

crime and execution. State executions cannot isolation of convicts is sufficient to achieve troubles
the promised payout by almost mitments. Some of their profits
half. NSEL, which was to pay are in lakhs while their weekly
out `174.72 crore on Tuesday
according to the settlement cal-
endar, received only `92.73
crore from members, of which
`92.12 crore will be disbursed
to investors on a proportionate
dues for the NSEL settlement
run into crores, lending cre-
dence to the view that they were
punting on the exchange, with-
out any stock of commodities to
back up their bets, and got
B Y N IRANJAN R AJADHYAKSHA
[email protected]
·························
MUMBAI

A
JE A N -JACQU E S ROUSSE AU
be relied upon for social gains. Yet, the costs the stated goal of our judicial system, which is
basis. caught out when trading was hundred years ago, a
“This has cast serious doubts suspended. young Indian economist
on the credibility and the inten- “...I am now worried whether reached New York in the third
tion of NSEL in settlement of NSEL would stick to its payout week of July. His name was B.R.
outstanding trades,” FMC said schedule,” said Arun Dalmiya, Ambedkar.
in a letter to the NSEL’s board secretary of the NSEL Investors Ambedkar later became fa-
of directors posted on the regu- Forum. He added that the fo- mous as a relentless critic of
lator’s website. “Non-settle- rum was in talks with lawyers to the pernicious caste system, an
ment of outstanding trade on “file a suit against NSEL and its inspiring political leader and

imposed by these remain heavy. A life taken to be reformative and not vengeful. Heinous
NSEL seriously reflects on your promoters by next Monday”. the moving spirit of the Indian
On 31 July, NSEL abruptly Constitution, but his early
suspended trading in all one- training was as an economist.
day contracts without assigning He had come to Columbia Uni-
a clear reason for doing so, al- versity to study under Edwin
though it seems likely that the Seligman, who also happened
fear of impending government to be a friend of Lala Lajpat Rai.
action forced its hand. The young scholar would sit
Ironically, that engendered a for hours in the university li-

cannot be given back, so the risk of a false con- violations are unlikely to spurt if we rid our
crisis, and as payout deadlines brary. In his three years at Co-
approached, investors demand- lumbia, Ambedkar took 29
ed the government’s interven- courses in economics, 11 in
tion to force NSEL to pay their history, six in sociology, five in
dues on time. On 14 August, the philosophy, four in anthropolo-
spot exchange put out a stag- gy, three in politics and one
gered payout schedule and each in elementary French and
placed the onus to clear dues
on the 24 members. TURN TO PAGE 3®

viction doing it is far from trivial. With open- rule-book of the death penalty. Parliament
The process was overseen by
FMC, which started monitoring ALSO SEE
the issue although spot ex-
Mint is also available for R7 with >Cafe Economics:
Hindustan Times in Delhi-NCR only TURN TO PAGE 2® The 1991 crisis playbook >P22

and-shut cases now a rarity, no justice system should expunge it once and for all.

MY VIEW | MoDerN TIMes

Why the right to privacy holds negligible mass appeal

Data Protection Act which came to life a few Esoteric rights are inventions. Privacy was right against any intrusion. In the digital era, state. This is only in practice; in theory, pri-
MANU JOSEPH days ago. The Act appears to protect a citi- invented; then marketed. The two types of it caught the imagination of a global mono- vacy is very lofty.
zen’s data from private players, but gives rights do not come from the same place. culture that sought to deny any sort of per- In 2017, India’s Supreme Court ruled that
government officials access to it, if they can The origin of the right to privacy is not as sonal data, even anonymized, to corpora- privacy is a “fundamental right”. The term
establish a reasonable cause to snoop. noble as its effect. It is funny how the news tions and governments. This movement was ‘fundamental’ has the sense of a basic
The government already has access to media is among the biggest champions of driven by a braiding of reasonable fear, psy- instinct; yet privacy is not that at all. In prac-

N
ot long ago, a person’s name and much of our data. The new law allows it to privacy, because the privacy movement chotic paranoia and megalomania. It was tical terms, a fundamental right is deemed so
phone number would be published easily interlink various strands of a life, give began in a campaign of the imported to India to fight basic by the Constitution that it is protected
in a thick book called the telephone flimsy reasons to snoop, and indemnify offi- American aristocracy to Facebook and Aadhaar. even from government action. Privacy is not
directory, which was distributed to every cials who gain access. The law has alarmed gag the free press. In 1890, People may Activists assailed Aad- mentioned in that document because it was
landline subscriber in the city. If a name was some people. This is the end of privacy, they lawyers Samuel Warren haar as state coercion to written in an era when its status was not so
missing or number inaccurate, one rang the say. To most Indians, however, privacy does and Louis Brandeis pub- have an intuitive collect biometrics. These elevated. The Supreme Court has elevated
telephone company to yell. Telecom was run not appear to be an issue. Privacy, as a right, lished an article in the Har- were the same people who, privacy by extrapolating some of the original
by the government then; this meant people does not stir the emotions of regular people. vard Law Review called
understanding for a mere tourist visa, gave fundamental rights (and clubbing together

is a journalist, novelist, and the

were shouting at the government for not
publishing their numbers for everyone to
Most of them are probably more agitated by
the religious rights of others than conceding
‘The Right to Privacy.’ It
was triggered by a spate of
of fundamental everything the US embassy
asked. To this accusation,
ideas of home, ownership and digital iden-
tity). But then, can a right that is so new also
creator of the Netflix series,
‘Decoupled’
see. Today, some people shout at the gov-
ernment for not hiding their numbers. How
private space to the government.
Sophisticated rights have little emotional
gossip columns about the
US urban elite. They com-
rights but don’t their defence was “con-
sent”. They claimed they
be ‘fundamental’? I don’t think so.
It makes me wonder if anyone can ever
did we get so private? appeal. Is it because these are culturally alien plained, “The press is over- see privacy as consented to give their win against the government. We appear to
Even 25 years ago, almost nothing was to India? Or, is it because they need better stepping in every direction information to the US, and enjoy fancy rights, but there are caveats and
considered private by most people, barring marketing? Perhaps, but the primary reason the obvious bounds of pro- one of them not to the Indian govern- caveats. Nothing trumps national interest,
nudity and acts that required it. Even today, why some modern rights are not popular is priety and of decency… To ment, which coerced them and the government holds all the cards to
there are tribes that do not consider nudity that they are not natural. occupy the indolent, col- by making banking diffi- define what is in the national interest. There
a private affair, or anything else for that mat- There are two types of rights. Rights from umn upon column is filled with idle gossip, cult without Aadhaar. This is a spurious is something ancient about this, about the
ter. But over the years, the sort of Indians antiquity, and esoteric rights. The former which can only be procured by intrusion argument. The fact is they were coerced by inequality of the ruler and the subject. In
who know what asparagus is, who also inva- are fundamental ways of being that pre- upon the domestic circle.” According to the US government, too. A visa applicant’s that way, this injustice seems more natural
riably know what privacy is, have become ceded even the idea of rights. People tend to opinion-makers in America, in this essay lies biometrics and considerable personal infor- than esoteric plans to reform it.
acutely concerned about guarding their per- be serious about these—like the right to live, the origin of the privacy movement. mation are a mandatory requirement. The government does understand privacy
sonal information, chiefly from the govern- earn a living, follow a faith, and have a home. In time, as privacy sought to recruit moral Like liberty, privacy is not a feral freedom, very well. See how it guards official secrets.
ment. They are aghast at the Digital Personal These rights have origins in human instinct. reasons, it couched itself as an individual but a negotiated privilege granted by the Secrecy is state’s right to privacy.
LIVEMINT.COM VIEWS MoNDAy, 21 August 2023
New Delhi 13

guEst VIEW M I N T C U R AT O R

India has taken action to de-risk Alcohol marketers mustn’t set

the image of liberated women
infrastructure development A sharp rise in American women drinking is posing a health threat

A triad of policy measures should boost infrastructure investment and help integrate our economy with global value chains

MINT

LISA JARVIS
is a Bloomberg Opinion columnist covering
biotech, health care and the pharmaceutical
industry.
RAJESH KUMAR SINGH
is secretary in the department for promotion of
industry and internal trade, ministry of
commerce and industry.

N
ew data shows that more women in
the US are dying from alcohol than
ever before. Public health authori-

I
nvestment in infrastructure development by ties need to adopt more effective strategies The health consequences of consuming
multilateral or bilateral financial institutions, to help women realize when their drinking alcohol need to be played up ISTOCKPHOTO
be they private, domestic or foreign entities, is can be a problem. Considering the many
an ‘informed decision’ that hinges on a careful marketing messages pushing a “rosé all eerily similar to the tobacco industry’s
analysis of potential risks and expected day” lifestyle, this campaign will be an push of Virginia Slims—and the brand’s
returns. The risk spectrum is broad and spans uphill battle. A recent analysis of data from famous “You’ve come a long way, baby”
political, administrative, regulatory and market- the Centers for Disease Control and Pre- slogan, which resulted in a marked rise in
based adversities. Traditionally, public capital vention found that alcohol-related deaths rates of smoking among women, says
expenditure on the creation of public utilities has among women increased by nearly 15% per Dawn Sugarman, a research psychologist
had only a limited assessment of risks and financial year between 2018 and 2020. The pan- in the division of alcohol, drugs, and addic-
returns (also so of private investment in this field). demic potentially exacerbated the trend, tion at McLean Hospital.
However, a paradigm shift is underway as we move with overall alcohol-related deaths in the Given women’s higher rates of anxiety
from sole reliance on public capex to incorporating US rising precipitously in the spring of and depression, the natural question is
private investment for infrastructure develop- 2020 and continuing to rise through 2021. whether they are drinking more to cope.
ment. Therefore, promotional measures and “If you go back to 1990, there were five While some data suggests that plays a role,
de-risking strategies for investment have become times as many men who had alcohol use data emerging from Keyes’s lab suggests
crucial. The Indian government has encouraged disorder than women—now it’s two times,” that there’s more going on. In surveys
private and foreign investment through various says George Koob, director of the National where people are asked to give their rea-
promotional measures, such as a liberal FDI policy, Institute on Alcohol Abuse and Alcohol- sons for drinking, the biggest change she’s
Ease of Doing Business measures like a National ism. Men’s drinking has declined, while seeing is more women saying they’re
Single Window System, fiscal incentives, and the women are drinking more. The trend starts drinking to have fun. That suggests public
establishment of agencies like Invest India, among early: College-age women now surpass health authorities need to make women
others. Alongside, a range of investment de-risking their male counterparts in binge drinking, more aware of the health consequences of
measures have also been introduced, leveraging Koob says. Those habits used to get cur- high-risk drinking patterns. Women’s
technology, an integrated approach in planning, tailed when women married and had chil- bodies have less water (which can dilute
rationalized risk-sharing mechanisms, etc. The projects with an estimated cost of about ₹5.4 tril- 6,356 issues related to 1,398 projects worth over dren, but with more women delaying or the alcohol), more fat (which can retain it),
triad of PM Gati Shakti, Project Monitoring Group lion. At the state level, an Empowered Group of ₹50 trillion have been resolved since inception (up forgoing both, heavy-drinking behaviour and lower levels of a metabolic enzyme
(PMG) and public private partnerships (PPP) forms Secretaries created under PM Gati Shakti and NPG to 2023); 336 issues across 188 projects have been persists longer. According to a recent (which breaks it down before it gets into
the backbone of these de-risking measures. has evaluated more than 200 projects in 2022-23. resolved in 2023-24 alone. study, delayed motherhood is one of the the bloodstream). “There’s a faster pro-
PM Gati Shakti seeks to revolutionize infrastruc- PM Gati Shakti also emphasizes multimodal The PPP model is another mechanism for an factors creating a larger group of women at gression to alcohol use disorder than men,
ture development through a ‘whole of the govern- connectivity to economic nodes and cargo hubs. equitable and rational distribution of risks and risk of alcohol abuse disorder. and women are more vulnerable to hang-
ment’ approach: a digital Geographic Information This enhances the commercial viability of network rewards between public authorities and private Women at the top of the socioeconomic overs, liver inflammation, cardiovascular
System (GIS)-based platform and an institutional projects as well as the infrastructure or manufac- partners. Over the past three decades, PPP in India spectrum appear to be driving the change. disease and certain cancers,” Koob says.
arrangement. This initiative aims to develop plans turing units connected to it. Implementation risk, has evolved from being merely an extra budgetary “Increases in alcohol consumption and That’s quite a list. Yet few women seem
for integrated multimodal infrastructure for the to the extent foreseen at the planning stage, is min- resource for project financing to a robust tool, binge drinking are concentrated among to be aware that they could suffer greater
efficient transportation of goods and people. Its imized through the PM Gati Shakti mechanism. attracting private capital along with state-of-the- the highest levels of education, highest health harms than men after consuming
national master plan has integrated over 1,460 GIS Further, at the implementation stage, the project is art technologies and best practices in infrastruc- level of family income and occupations that lower amounts of alcohol. Sugarman says
data layers representing infrastructure assets, with subject to another de-risking mechanism in the ture development. After 1991, this mechanism led are considered more prestigious,” says many women tell her they had no idea.
topographical as well as geographical features, and form of the Project Monitoring Group, which also to the infusion of private capital amounting to Columbia University epidemiologist Kath- Doctors must do a better job of screening
data related to 15 social sectors. By bringing has an administrative set-up and digital dashboard. about ₹68 trillion with over 9,200 infrastructure erine Keyes, who authored the study. women and highlighting those risks. The
together various ministries and departments on a This operates as a special cell in the government’s projects. Looking at trends over this period, the And it’s possible that marriage and par- way they pose their questions about drink-
single digital platform, PM Gati Shakti enables Cabinet Secretariat. Currently, the ministry of last decade has clocked an almost equal number of enthood no longer act as sufficient buffers ing matters, too, Sugarman says. A physi-
data-driven decision-making for project planning commerce and industry and Invest India are pro- projects, worth about 40% of the total PPP invest- against excessive consumption. Much ink cian might bring their own biases into the
and implementation. More than 38 ministries/ viding secretarial support and operating the dash- ment so far. This growth is significant and can be has been spilled over America’s #winemom exam room, resulting in an approach that
departments of the central government, 28 states board. This group monitors the implementation of attributed to de-risking measures. phenomenon. Researchers suspected the closes off conversation.
and eight Union territories are already part of it. projects worth over ₹500 crore in investment or The PM Gati Shakti National Master Plan, yearslong proliferation of memes about Providers should press beyond the ques-
The traditional process of inter-ministerial con- lower if deemed critical for national development. Project Monitoring Group and Public Private Part- moms drinking to numb their stress might tion of “How many drinks do you have each
sultation at the planning stage of projects has been The Project Monitoring Group takes up issues nerships form a triad of investment de-risking and be helping to drive a fundamental shift in week?” to offer some information on the
substituted by a collaborative evaluation at the related to Central and state-level ministries/ promotional measures taken by the government the acceptability of drinking. heightened health consequences for
national level by a Network Planning Group (NPG) departments for quicker resolution, including that have accelerated infrastructure development Unpacking why women are drinking women, and perhaps explain the benefits
to foster synchronized decision-making and clearances, permissions, land acquisition, grants of by mobilizing private capital and technology. more should shape public health experts’ of forgoing the extra drinks, Koob says.
reduce administrative risk. Land acquisition risk, right-of-way/use, licensing or leasing needs, and Intensifying these measures is likely to boost strategy for reversing the trend. Certainly, Just like holding a slim cigarette was
common in infrastructure development, is also forest and environmental clearances, apart from investor confidence and attract further invest- the pervasive signals that drinking is part of never truly a sign of women’s progress, nei-
minimized by using the planning tools available on law-and-order and contractual issues, etc. Thus ments, laying the foundation for a more efficient being a successful, carefree person—those ther is holding a glass of rosé. Public health
the GIS platform. The land-use and ownership far, this mechanism has resolved a multitude of and resilient logistics ecosystem, a sine qua non for omnipresent “Life Laugh Wine” signs— agencies would do well to remind women
data available on the master-plan platform helps issues related to various projects, both public and the greater integration of India’s economy with don’t help. Neither does the sudden influx what happened the last time the country let
expeditious decision-making based on objective private. Over 7,528 issues related to 2,388 projects global value chains. India’s joining a global club of beverages like hard seltzers and canned marketing agencies shape the image of
assessments of land acquisition risk. The NPG has with an estimated value of over ₹65.38 trillion are of the 10 most efficient logistics ecosystems would cocktails that seem tailored to women. The modern women: Cancer rates skyrocketed
met 51 times in the last 11 months and evaluated 85 being monitored through this mechanism. Around be incidental to it. marketing push to sell women alcohol is and women died. ©BLOOMBERG

thEIr VIEW

Environment policy needs federalism to play a big role

no modern formal climate legislation, at sharing information, data and best practices federations have started providing to their climate change mitigation and adaptation
ANOOP SINGH either the federal or state level, beyond the related to climate change between the fed- sub-national levels of government is also efforts. This includes programmes like the
dated Environment Protection Act of 1986, eral government and sub-national govern- becoming clear in many countries. Climate Solutions Fund and the National
which gave sweeping powers to the central ments. This helps the latter align their In Brazil, the federal government pro- Partnership Agreement on Energy Effi-
government on environment policy and actions with national policies and priorities. vides financial resources and support to sub- ciency, which provide financial support for
implementation. In Australia, collaborative forums such as national governments through programmes projects related to renewable energy, energy

I
ndia has made important global commit- As international financing mechanisms the Council of Australian Governments and and initiatives to promote climate change efficiency and emission reduction.
ments to cut its emissions to net zero by evolve, their conveyance to sub-national the Energy Ministers’ mitigation and adaptation Policy solutions have also emerged that
2070, with a rising share of renewal levels will be critical to ensure international Meeting facilitate discus- measures. For example, the address the critical issue of carbon pricing,
energy among the milestones set for the commitments are met in a unified way sions and coordination on How well central Amazon Fund supports nationally as well as by provinces, and the
path towards this target. In managing the across all levels of government. climate and energy-related sustainable land use prac- related issue of creating renewable energy
transition, it is time to place a lens of fiscal Global experience: In a growing number of matters, thereby helping and state-level tices, forest conservation capacity.
federalism on environment policy. countries, federal governments are taking develop a cooperative and other initiatives that Canada’s federal government has imple-
So far, centre-state environmental policy steps to work in coordination with sub-na- approach across jurisdic-
administrations contribute to climate mented a national carbon pricing system,

is a distinguished fellow at the

management, including adaptation, mitiga-
tion and financing, has been done in an ad
tional governments to ensure alignment in
climate change policies and regulations.
tions.
In this context, different
coordinate change mitigation in the
Amazon region.
under the country’s Greenhouse Gas Pollu-
tion Pricing Act, with clear stipulations on
Centre for Social and Economic
Progress, and a former member
hoc way globally. It would make a lot of sense
for federations (and their finance commis-
This includes sharing guidelines, standards
and technical specifications to guide sub-na-
levels of government in
many countries have
climate action In Canada, the federal
government provides
carbon pricing by Canadian provinces.
Australia has established a Renewable
of 15th Finance Commission sion-like institutions) to consider centre- tional climate action while maintaining con- started adopting measures will determine financial support to provin- Energy Target (RET) system that sets goals
state financial and related institutional sistency with national objectives. to develop and implement ces and territories through for increasing the share of renewable energy
arrangements to address pressing issues of Canada is a good example of a country their own climate policies key outcomes transfer payments and in the country’s electricity generation and
climate change management. where the management of climate change and initiatives. For exam- grants to address climate also for driving renewable energy invest-
This is especially true for countries like with provinces and territories includes a ple, states like South Aus- change. Funding schemes, ments and deployment at both the federal
India that are likely to bear more than their combination of fiscal federalism, collabora- tralia and Victoria in Australia have imple- such as the Low Carbon Economy Fund and and state levels. The country’s state govern-
fair share of the climate-action burden, tion and shared responsibilities. Germany mented ambitious renewable energy tar- the Disaster Mitigation and Adaptation ments have implemented their own renewa-
given that it is mostly the actions of others too has a federal system where both the fed- gets, feed-in tariff schemes and energy Fund, support mitigation, adaptation and ble energy targets to complement the
that led the world to this crisis. India also has eral government and regional governments efficiency programmes to drive a clean resilience projects at the provincial and ter- national RET, fostering a collaborative
a high proportion of people directly have responsibilities for climate change pol- energy transition and emission reduction ritorial levels. approach to achieve broader climate goals.
employed in natural resource dependent icies. Among emerging markets, Brazil has within their jurisdictions. Australia provides grants and funding to The next part of this article will examine
sectors. However, thus far, the country has established platforms and mechanisms for The nature of the financial support that state and territory governments to support the issue in India’s context.
14 MoNDAy, 21 August 2023
New Delhi BUSINESS OF LIFE WORKPLACE LIVEMINT.COM

ISTOCKPHOTO

How Gen Z is redefining

professional prestige ISTOCKPHOTO

width to keep doing this, I’ll always feel like I

have a prestige job,” says Roy.
Different generations have different views of
work and the role it plays in their lives. “Most
people (Gen X and Y) also reach a stage when
they realize the importance of balancing work
and personal life. These generations, however,
have traversed through their career driving
towards higher achievement and career suc-
cess, defined primarily in terms of the level they
The pluses and
reach in career ladder, salary drawn, and social
status (affording a rich lifestyle),” says Agarwala.
She adds that the realization comes after they
reach a certain level in their careers—when they
minuses of using
look for meaningfulness—after which they redi-
rect their energies to personal fulfilment.
Pareek says adults she grew up around got
AI at workplaces
burnt out from long hours, work dominated
their identities. “I feel people my age want to
shape themselves as individuals outside their
Advertisers are already using AI
profession as well. I want to take up hobbies and technology in promotional campaigns
develop skills beyond work for myself and to
give my personality more dimension,” she says.
These changing priorities are also noticeable Reuters
within their social circles. Karen Martin says,

S
“For a friend of mine, the environmental impact ome of the world’s biggest advertisers, from food giant Nes-
of a company matters more than getting paid tle to consumer goods multinational Unilever, are experi-
more. Another friend worked at a company with menting with using generative AI software like ChatGPT
an aggressive competitive environment, like and DALL-E to cut costs and increase productivity, executives
promoting midnight availability as a positive. say. But many companies remain wary of security and copyright
She switched jobs for a better work-life bal- risks as well as the dangers of unintended biases baked into the
ance.” Martin has seen her friends choose per- raw information feeding the software, meaning humans will
sonal happiness over a hefty pay package. remain part of the process for the foreseeable future.
“Some would rather wait a few months without Generative artificial intelligence (AI), which can be used to
a job, than work somewhere where their mental produce content based on past data, has become a buzzword over
health is at risk,” she says. the past year. Marketing teams hope it will result in cheaper,
But, would this expansive definition of pres- faster and virtually limitless ways to advertise products.
tigious work then only apply to those who can Investment is already ramping up amid expectations AI could
afford to not earn monthly? Martin says, “It is a forever alter the way advertisers bring products to market, execu-
luxury we have when starting our careers. Once tives at two top consumer goods companies and the world’s big-
we cross 30-35 years, this luxury gets taken gest ad agency told Reuters. The technology can be used to create
away because we have family responsibilities, seemingly original text, images, and computer code based on
Today’s young workers sity, inclusivity, and having an identity beyond “I switched from being an employee to a homeowners, loans, kids, etc. People at that training, instead of categorizing or identifying data like other AI.
work are some serious considerations. In a consultant because of the additional freedom stage may not have the option of seeing whether WPP, the world’s biggest advertising agency, is working with
want more from work recent survey of 4,000 working professionals, and flexibility,” says Gurugram-based design a company’s values align with their own.” consumer goods companies including Nestle and Oreo-maker
students and interns between the ages of 18-25 strategist and UX/UI consultant Arya Vijayan, Mondelez to use generative AI in advertising campaigns, its CEO
than just recognition and across 13 Indian cities, 64% said they wanted 30. She did freelance work alongside her full- NEED FOR A NEW MINDSET Mark Read said. “The savings can be 10 or 20 times,” Read said.
flexible workplace options. The survey, by time jobs earlier, which gave her the confi- Gen Z ’s desire for a healthy workplace should “Rather than flying a film crew down to Africa to shoot a commer-
money. They want work- industrial and services conglomerate RPG dence to begin consulting two years ago. Con- now shape organizations’ recruitment strate- cial, we’ve created that virtually.”
life balance, flexibility, Group, and Yuvaa Insight Studio, a youth media sulting has been lucrative for her, but her deci- gies and work culture. In India, WPP worked with Monde-
organization, found that 61% would accept less sion was influenced more by her experiences Agarwala suggests that companies should Investment is lez on an AI-driven Cadbury campaign
and more meaning money for a workplace that values mental with companies, where pay increments were provide work that challenges young profes- ramping up as with Bollywood superstar Shah Rukh
health and inclusivity. Other priorities included not given despite her excelling at work, and sionals and encourages creative solutions as
harassment policies (44%), menstrual leave long hours took a toll on her. “It’s more work they do not want monotony. “They want to AI is expected to Khan, producing ads that ‘featured’ the
actor asking passers-by to shop at
By Reem Khokar (42%), and companies that enable employees to than being an employee, but now I get to do work in places that do not impose strict hier- alter the way 2,000 local stores during Diwali.
follow their passion (62%). things on my terms, that fits my availability, archy; balance career achievement with per- advertisers sell Small businesses used a microsite to

K
aren Martin, 26, spent the early “The definition of prestigious work is my mental health.” sonal goals; provide autonomy in constructing products generate versions of the ads featuring
years of her communications expanding,” says Tanuja Agarwala, human Employers who prioritise employee health their work day; and clearly communicate com- their own store that could be posted
career at leading organisations. resource manage- are a big draw. Par- pany values and culture, particularly related to online. Some 130,000 ads were cre-
She enjoyed her roles, for they ment and organiza- eek’s current work- social relevance, diversity tolerance, and inclu- ated featuring 2,000 stores which gained 94 million views across
offered excitement, money, tional behaviour pro- Gen Z’s desire for a healthy place has a doctor and sivity,” she says. YouTube and Facebook, according to WPP.
quick recognition and growth. “But I was caught fessor at Delhi’s Fac- workplace should now shape physiotherapist on Divya Mohan, chief human resource officer Nestle is also working on ways to use ChatGPT 4.0 and Dall-E
in a vicious cycle as I went in deeper. I hardly got ulty of Management site. “It makes me feel at omnichannel insurance platform Insurance- 2 to help market its products, Aude Gandon, its Global Chief Mar-
any leave. My shifts often changed,” says Studies. “While land- organizations’ recruitment secure that these Dekho agrees that there is a shift in Gen-Z’s pri- keting Officer and an ex-Google executive, said. “The engine is
the Bengaluru resident. “I was working from ing an ‘elite’ job in a strategies and work culture. companies are taking orities. “I think a distinct differentiator is their answering campaign briefs with great ideas and inspiration that
home, but would hardly go out to socialize or certain industry (con- my physical and men- belief in ‘work to live as opposed to live to work’, are fully on brand and on strategy,” Gandon said. “The ideas are
meet friends, because my job demanded that I sulting or finance, for tal health seriously,” which was characteristic of the previous gener- then further developed by the creative team to become content
was constantly at my laptop.” Three years ago, example) is still seen as upstream, a high-status she says. She also values a diverse and inclusive ations,” she says. Because Gen-Z is more socially that will be produced, for example for our websites.”
she decided to step back and consider whether job goes beyond high salary.” Money is impor- workplace. “I look at how a company is ensuring conscious and values social and environmental While lawmakers and philosophers alike still debate whether
working with a big agency was worth compro- tant, she says, but Gen Z puts more emphasis on people from all backgrounds feel included and responsibility in organizations, Mohan suggests content produced by generative AI models amounts to anything
mising on her mental and physical health. autonomy and a creative work environment. there is no discrimination. This is important for engaging them in sustainability initiatives, like human creativity, advertisers have already begun using the
In 2020, she kickstarted her entrepreneurial “I need money, but I also need to have the your psychological safety.” community involvement, and philanthropic technology in their promotional campaigns.
career and established House of Anglo, a spe- flexibility and independence to work at my own Having time to pursue interests outside of efforts that align with their values. Unilever, which owns more than 400 brands, has its own gen-
cialty Anglo-Indian food service, and Alkemi time so that I can explore other interests,” says work is also a priority. Enakshi Roy, 34, head of Roy sums up what a “prestige job” really erative AI technology that can write product descriptions for
Media, a PR agency in Bengaluru. “I wanted my Isha Pareek, 26, a product manager at a British product design at a medical education com- stands for for today’s young generation: “It’s one retailers’ websites and e-commerce sites. The company’s TRE-
own business that had values in place… where e-commerce company in Manchester. Pareek pany, values being able to work remotely from that lets me afford the values and lifestyle I Semmé brand has used its AI content generator and its automa-
people who worked with me had a voice and moved there from Mumbai five years ago. anywhere. She shuttles between Bengaluru, dream of. The most important thing to me is to tion tool. But Unilever is concerned about copyrights, intellectual
could be part of an open work culture,” she says. where the company is based, and Bordeaux, be able to live on my terms, not get too greedy, property, privacy and data, Aaron Rajan, its global vice president
Like many born from the mid-90s to late THE BURNOUT EFFECT? where her husband lives and works. Passionate reduce the carbon footprint, and find meaning of Go To Market Technology, told Reuters. The company wants
2000s, Martin’s definition of success is different For some millennials, a career switch happened about the environment, she dedicates 40% of and love in what I’m doing.” to prevent its technology from reproducing human biases, like
from earlier generations’. For Gen Z or post- after spending their early years working long her day to volunteering for environmental non- racial or gender stereotypes, that might be embedded in the data
millennials, flexibility, work-life balance, diver- office hours and then experiencing burnout. profits. “As long as my job gives me the band- Write to us at [email protected] it processes.

The best headsets for quiet work in a noisy workplace

Good noise-cancelling With plenty of options in today’s Earbuds 2 are 30% smaller than their pre- them daily and you’ll feel no fatigue. Sec-
crowded market, we’ve narrowed it down decessors. The case is 40% smaller and ond, improved noise isolation. Each ear-
headphones can make and made it easier for you. much more pocketable. bud now has three microphones to block
your world a little more Here’s a list of some of the best noise- The Bose QC Earbuds 2 (₹25,900) truly out external sounds. ANC is also top-
cancellation headphones to drown out have one of the best ANC of all. With an notch.
peaceful. A guide to help those noisy environments. improved sound, great call quality and With a high-quality audio experience
to zero in on a pair Sony WF-1000XM5 &
better battery life, these are also a great
choice.
and excellent mic quality for calls, the Gal-
axy Buds2 Pro hold its own against the
Sony WH-1000XM5 competition. The only downside is the
Sahil Bhalla Sony has been at the top of the game ever SEnnHEiSEr MoMEntuM 4 battery life with ANC on.
since the release of their first ANC head- WirElESS

S
ometimes all you need is a holiday phones. The competition may be fast There’s only one thing you APPlE AirPodS Pro
from your busy surroundings. catching up, but Sony’s headphones are need to know about Sen- (2nd GEnErAtion)
Whether it’s the noisy colleagues or still a top-tier recommendation. nheiser’s Momentum 4 If you’re well
screaming babies during a flight, the abil- If you’re a fan of over-ear headphones, Wireless (₹34,990) entrenched in the
ity to tune off is underrated. Noise-can- the WH-1000XM5s (₹34,990) should be headphones: 60 Apple ecosystem,
celling headphones have become an on your shopping list. The new design hours. Yes, they then the AirPods Pro
essential piece of travel kit whether means these are comfier than their prede- have a marathon (2nd generation;
you’re going to an office or taking a six- cessors and the ANC has been further Sennheiser’s 60-hour battery ₹26,900) are your
hour commute. With an ever-expansive improved. With a more detailed and bal- Momentum 4 life. Couple that default option. The
list of options, there’s something for anced sound quality, everyone will cer- Wireless with supreme com- AirPods Pro, now in
everyone. tainly enjoy them. The only downside is headphones; and fort and you have a its second generation,
To boil it down, microphones, software that they do not fold. (right) the Apple winner on your hands. is powered by the new
algorithms and energy-efficient process- If you want in-ear headphones instead, AirPods Pro (2nd The Momentum 4 H2 chip. It’s more energy
ors combine to achieve Active Noise Can- then the WF-1000XM5 (launching in generation) Wireless headphones fea- efficient and delivers more
celation (ANC for short). ANC reduces India around Diwali) is a good option. The ture an expansive sound quality processing power. With new
background noise by generating sound True Wireless (TWS) Earbuds are sleeker and have excellent noise-cancelling low-distortion drivers, the AirPods Pro
waves that cancel out ambient input. than before, the audio quality has been BoSE QC45 HEAdPHonES & ANC on) and an ANC that can block out capabilities. (2nd generation) feature better sound
Over-ear headphones may be ahead in ramped up, and the ANC is top-notch. BoSE QuiEtCoMFort EArBudS 2 nearly 90% of ambient sound. clarity and improved ANC. The battery life
terms of technology and features, but If neither of these fits within your bud- Bose’s QuietComfort 45 (QC45 for short; The best part of the QC45s is the fact SAMSunG GAlAXy BudS2 Pro has been improved from five to six hours
in-ear true wireless earbuds have come a get, but you still want to go with a Sony ₹29,900) is their best release ever. The that they can be folded, making them way Samsung’s updated design for the Galaxy with ANC on.
long way since the original AirPods product, then the Sony WH-CH720N design is comfortable, comes with USB-C, easier to travel with. Buds2 Pro (₹16,990) means two things.
release in September of 2016. (₹14,990) can be considered. a much longer battery life (24 hours with Meanwhile, Bose’s in-ear QuietComfort First, the vastly improved comfort. Use Write to us at [email protected]