NEW DELHI, MUMBAI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE*, LUCKNOW* VOL. 18 NO.

296

Tuesday, December 10, 2024

India targets speed on Brics Sanjay Malhotra to lead next

livemint.com trade track uP1 leg of RBI’s war on inflationuP1
 NEW DELHI, MUMBAI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE*, LUCKNOW* VOL. 18 NO. 296

Tuesday, December 10, 2024

Think Ahead. Think Growth.

mint primer QUICK EDIT

Should India pay Cars in the

for academic slow lane
Close on the heels of a surpris-
journal access? ingly weak gross domestic
product (GDP) growth reading,
automobile sales data, seen as a
BY SOUMYA GUPTA an important indicator of eco-
Last month, the Union government announced a new “One Nation, nomic activity in India, has spelt
One Subscription (ONOS)” scheme to give students and researchers another round of disappoint-
free access to international scientific research. Why is the government ment. Retail sales of passenger
paying for this? Shouldn’t knowledge be free? Mint explains. vehicles in November fell 14%
from a year earlier, according to
data issued by the Federation of
Automobile Dealers Associa-
tions on Monday. The bump-up
that countless weddings last
month were expected to pro-
vide doesn’t seem to have mate-
rialized. This has accentuated
concerns over flagging demand
even for relatively expensive
consumer durables, with weak-
nesses in lower ticket-price cat-
egories a longer-running story.
Automobile dealer inventories
had risen to as high as 80 days
recently. Though it is now down
to about 65 days, there’s still
What is this initiative What can academics much stock left to offload. This
1 all about?
ONOS will allow national access to
2 access under ONOS?
ONOS will include 13,000 journals
implies that discounts to lure
buyers will likely continue.
academic research and journals from 30 publishers, including top December anyway sees an
publishing scientific papers free of names such as Wiley (publisher of increase in price-offs and spe-
charge starting next year. To scientific journal Advanced cial gifts as buyers tend to defer
coordinate free access, India is Materials), Elsevier (health journal year-end purchases to the new
setting up a central agency, the Lancet), Springer Nature and year. With input costs rising,
Information and Library Network, AAAS (publisher of academic
several manufacturers have said
or INFLIBNET, under the journal Science). These publishers
University Grants Commission. It own thousands of journals across they will raise prices in January.
will cover more than 6,300 niches in scientific research in With sales already in the slow
institutions with over 18 million India and abroad. Individual lane, that might dampen pros-
students, the Centre said. All state subscriptions to these journals can pects of a new-year revival.
and central higher education cost thousands of dollars; India is
institutions are covered, besides spending ₹6,000 crore ($700
central government R&D labs. million) to make these
India’s Anusandhan National subscriptions free over the next
Research Foundation, or ANRF, is three years. Academics will be able
QUOTE OF THE DAY
to manage the scheme, and review to access these journals via a single
how many Indians are published. ONOS portal.
We were lucky to capture the
ISTOCKPHOTO opportunities of the internet 20
years ago. In the future 20 years,
3 Why is this a significant
initiative?
Most students and researchers cannot
AI will bring changes far beyond
afford to pay for subscriptions or even an
the imagination, AI will
article on their own. If their institution bring on an even
does not offer access, many resort to what
some call piracy, using websites such as
greater era.
Sci-Hub and Z-Library. Now government
institutions, including those in tier-II and
tier-III cities, need not worry about raising
funds for access to scientific knowledge.
JACK MA
CHINESE BILLIONAIRE
How have publishers Shouldn’t academic
4 fought piracy in India?
Elsevier, Wiley, and the American
5 knowledge be free?
Many academics believe
Chemical Society sued Sci Hub publishers unfairly profit from
and LibGen in the Delhi high scientific progress while blocking INSIDE
court in 2020. These platforms access to new knowledge.
host freely accessible versions of Universities benefit from public Mark to Market | Godrej adds to
published research and are widely funding, too. Worldwide, there is a FMCG gloom >P4
used by students, teachers and growing “open access” movement Global | Biden ceding presidential
academics. This case is ongoing. In demanding academic knowledge influence to Trump irks Democrats >P8
2023, a similar case was filed in a be freely available. Its most famous
Money | Why to avoid biz payments from
Delhi district court by tax law proponent was Aaron Swartz. In
personal credit cards >P11
publisher Taxmann India against 2012, the US authorities sentenced
online platform Z-Library, which Swartz to jail for “stealing” Views | Demography is destiny: It’s a
has subsequently been blocked in paywalled research papers from law that cannot be shaken >P12
India. Publishers have filed similar digital academic library JSTOR. Business of Life | Enjoy year-end parties
copyright cases around the world The next year, Swartz died by without social burnout >P14
against such platforms. suicide at the age of 26.

mint Data Bites

2024 IN REVIEW: HOW VEHICLE

SALES PERFORMED THIS YEAR
Monthly number of vehicles registered Share of vehicles registered in Top five makers of two-wheelers and
across all RTOs in India (in million) 2024, by fuel type four-wheelers in 2024, by sales (in million)
2023 2024 Four-wheelers
1.8 0.6
7.4 CNG Others Maruti Suzuki 1.34
3.2 Electric
Nov 2024 vehicles^ Hyundai Motor India 0.51
3 9.9 Mahindra & Mahindra 0.44
Diesel**
Tata Motors 0.44
Toyota Kirloskar 0.22
2
Dec 2023 (in %)

Two-wheelers
2
Hero MotorCorp 5.26
80.3 Honda Motorcycle
Petrol* and Scooters India 4.57
December 2024 TVS Motor 3.09
(at current rate)
*includes petrol, petrol/CNG, petrol/ethanol, Bajaj Auto 2.08
petrol/hybrid,petrol/LPG | **includes diesel,
1 diesel/hybrid, dual diesel/LNG | ^ includes Suzuki Motorcycles India 0.91
January December electric (battery-operated vehicles) and pure EV

Data: Shuja Asrar, design: Sarvesh Kumar Sharma Source: Vahan dashboard, ministry of road transport and highways
 PLAIN FACTS

AI cos’ hunger for data

ignites copyright wars
BY SHUJA ASRAR

ANI’s case against OpenAI is just the tip of the iceberg. AI companies are hungrier than ever for more and
more data as they are racing against time to build competitive models.

A timeline of key cases of legal action by publishers against AI companies

 Plaintiff  Authors Guild and 17 authors,  Authors Abdi
 Defendant including John Grisham and Nazemian, Brian Keene,
 Getty Images George RR Martin  New York Times and Stewart O’Nan
 Domain of
 Stability AI  OpenAI, Microsoft  OpenAI, Microsoft  Nvidia
copyrighted
 Images  Books  News  Books
content

Feb 2023 Jul 2023 Sep 2023 Oct 2023 Dec 2023 Feb 2024 Mar 2024 Jun 2024

L
 Sarah Silverman  Concord  Alternet, Intercept  Center for
(actress & comedian), Richard Music Group and Raw Story Investigative Reporting
Kadrey (novelist), among others  Anthropic  OpenAI, Microsoft  OpenAI, Microsoft
 Meta  Books  Music  News  News

AI models' hunger for training data has AI companies are inking deals with
grown exponentially in the last decade publishers to avoid legal trouble
Training compute* of major AI models launched since the 1950s Publisher AI company
Each circle denotes an AI model, and its size denotes its training
compute. The x-axis shows the launch date. The y-axis uses a log
scale (a doubling on a normal scale corresponds to a squaring on
a log scale).
1030 FLOP
Gemini 1.0 Ultra
1027
1024
1021
1018 SB-LM
1015
TD-Gammon Fisher
1012 Perception Vector
(1960) image
109 classifier
JPMAX
106 Cognitron
Source: News reports
103 ADALINE
1950 Publication date 2024 AI models could run out of training data as
*The total number of FLOPs (floating-point operations) required to train a early as 2026, research claims
machine learning model. A higher value signifies a more complex and
computationally intensive training process. Projections of the effective stock (in number of tokens*) of human-
Source: Epoch AI
generated public text and dataset sizes used to train notable LLMs
Some AI models are now capable of Estimated stock of human-
outperforming humans in basic tasks generated public text, 95% CI
1015
Test scores of AI systems on various capabilities relative to
human performance
Handwriting Speech recognition
1014
Reading comprehension Language understanding
Predictive reasoning Image recognition
20
AI models score more points than humans 1013
0
Human performance level 2026-2032: Sometime in this
-20 period, the stock of human-
1012 generated data is expected to
-40 be fully utilized if current LLM
-60 development trends continue.
(Median estimate: 2028)
-80 Dataset sizes used
1011 to train notable LLM
-100 models, 95% CI
Initial performance of AI models
-120 2020 2025 2030 2035
1998 2023 *A dataset size is defined as the number of tokens in a training dataset: One token
The initial score for AI model's capability is taken as -100. usually corresponds to around 0.8 words. CI: confidence interval.
Source: Kiela, D., Thrush, T., Ethayarajh, K., & Singh, A. (2023) Source: "Will we run out of data? Limits of LLM scaling based on
'Plotting Progress in AI', Contextual AI Blog; processed by Our World in Data human-generated data" by Pablo Villalobos et al, Epoch AI (2024)

ast month, news agency ANI filed a lawsuit against unit, such as a word, used by AI models for learning.) This

L OpenAI alleging that it had used its content to train

ChatGPT, its popular chatbot. This is likely the first
such case in India, but the lack of clear policies on AI tools’
stock is growing slowly, and as large-language models
scale, they could exhaust this supply by 2030, according to
an Epoch AI study published earlier this year.
use of public data has sparked similar conflicts globally. At OpenAI, facing a data crunch before ChatGPT’s 2022
the core of it is AI tools’ relentless demand for high-quality launch, turned to unconventional methods. According to
data, and the fact that readily available online information a New York Times report, it built Whisper, a speech
could be nearing its limit. Without expanding to more data recognition tool that transcribed millions of hours of
sources—printed novels, personal files, videos, and news YouTube videos, potentially breaching Google’s terms
content—the growth of AI chatbots could plateau. and the rights of content creators. Google itself allegedly
But this pursuit of data is colliding with copyright did the same, and expanded its privacy policy to allow itself
concerns and the very business models of publishers. to tap into Google Docs and Sheets to train its bots.

THE STORY SO FAR THE HUNT

In the US, publishers, musicians, and authors AI firms are scouring every possible source to
have taken legal action against AI firms for using feed their models. Students’ assignments,
their content to train their models. Last year, YouTube videos, podcasts, online files, social
Getty Images sued Stability AI, accusing it of media posts—nothing is off limits. The endless
using 12 million of its photos for its platform. The pursuit has fuelled fierce competition among AI
New York Times moved against OpenAI, companies to secure lucrative data deals with
claiming that its actions had made it a direct publishers. Reddit struck a $60 million annual
competitor in providing reliable information. Liked this story? deal with Google, granting the tech giant real-
Several writers have also initiated lawsuits. Share it by time access to its data for model training. Top
AI companies argue that their language scanning the legacy publishers and news agencies have done
models are built on public data, which they QR code. the same. AI companies are also turning to
contend is protected under fair use policy. synthetic data—that created by AI models
After being trained on massive datasets, advanced AI themselves, which can be reused to generate even more AI
models like OpenAI’s ChatGPT 4.0 and Google’s Gemini data. As per Gartner, synthetic data could surpass human-
1.0 Ultra have achieved computational efficiency generated data used for training AI models by 2030.
comparable to the human brain. Some models have even But synthetic data could come with its own risks. A
outperformed humans in tasks such as reading, writing, Nature study by Ilia Shumailov and colleagues warned of a
predictive reasoning, and image recognition. “model collapse”: when AI models recklessly learn from
To deliver precise, error-free, and human-like outputs, data generated by other models, the output becomes
AI systems need vast amounts of human-generated data. prone to errors that replicate and amplify over time.
The most advanced models are trained on trillions of There have also been attempts to improve the
words of text from the internet. But this pool is finite, algorithmic efficiency of AI models, which will let them
raising questions about how these models will sustain get trained on less data for the same output.
their growth as readily available information runs out. The rat race of AI models to outsmart each other—and
Researchers at Epoch AI estimate the internet holds the human brain—is shaping tech’s future. As AI grapples
around 3,100 trillion “tokens” of human-generated data— with data scarcity and copyright cases, ethical questions
though only about 10% is of sufficient quality to train AI over their data-hungry pursuits are looming large.
models. (A token, in this context, is a fundamental text [email protected]

MINT PODCASTS
GENZ VS MILLENNIAL KIDNAPPED BY AI PREDICTIVE ANALYSIS
As Gen Z A tiny robot Join AI Rising
steps into “kidnapped” podcast hosts
leadership 12 larger ones with Jaspreet
roles with in Shanghai, Bindra as
tech-savvi- sparking big they explore
ness and bold questions AI’s evolving
work-life about AI landscape,
balance pri- safety. Our from GenAI
orities, how does this reshape the Mint Techcetra hosts Leslie D’monte adoption and ethical dilemmas to
workplace dynamics with millenni- and Shouvik Das dive into this inci- breakthroughs like AlphaFold. Dis-
als? Dive into the generational shifts dent, past AI mishaps, media’s evolv- cover how AI is driving innovation,
challenging norms and ing role, and a modular reshaping industries, and
explore if collaboration or smartphone. Tune in for balancing progress with
passing the torch is the insights and some responsibility and human
way forward. laughs! ethics.
 New Delhi, MUMBAI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE*, LUCKNOW* VOL. 18 NO. 296 Rs. 10.00 . Price with Hindustan Times Rs. 15.50 18 PAGES

Tuesday, December 10, 2024

How Livspace is readying Why Raamdeo Agrawal is

livemint.com for an IPO uP10 betting on Asian Paints uP4

SENSEX 81,508.44 200.68 NIFTY 24619.00 58.80 DOLLAR ₹84.73 ₹0.03 EURO ₹89.54 ₹0.05 OIL $72.43 $0.82 POUND ₹108.19 ₹0.12

India targets speed Malhotra to lead

next leg of RBI’s
Blackstone
ends bumper
DON’T MISS
HT

year with IGI

on Brics trade track war on inflation public offer
Ranjani Raghavan &
Pact in place with Russia, coming next to South Africa, Brazil Gireesh Chandra Prasad & Sneha Shah
Shayan Ghosh
MUMBAI Growth in capex by Centre,
Gireesh Chandra Prasad states, CPSEs may fall in FY25
trade winds NEW DELHI/MUMBAI

W
[email protected] ith more than $3 bil- Capital expenditure by central infrastructure

T
NEW DELHI he war on inflation has a lion garnered ministries, central public sector enterprises
new general leading the through exits in (CPSEs) and state govts is expected to slow in

I
ndia’s trade with Brics countries charge, as India’s top 2024, Blackstone Inc is look- FY25 after rising to a five-year high in FY24 due
may be poised for a take-off as revenue officer Sanjay Mal- ing at one of its most profitable to reduced spending in the first two quarters,
officials work to extend customs- hotra moves from North Block years out of India, according to two people familiar with the matter said. >P2
related privileges to trusted mer- to Mint Road. On Monday, the a Mint analysis. Importantly,
chants from these nations, which Union cabinet’s appointments the PE giant would be sitting Air India places order to buy
would also fetch similar benefits to committee named the 1990 on much more in potential 100 more Airbus jets
Indian exporters to those markets, batch IAS officer to lead the future gains, as it holds big
Tata Sons-owned Air India on Monday
two persons aware of the matter said. Reserve Bank of India, a day Sanjay Malhotra is the latest chunks in almost all the com- said it has placed a firm order for 100
While such a mutual recognition before governor Shaktikanta FinMin official to lead RBI. PTI panies it is selling stakes in. more aircraft with Airbus. The firm order
agreement (MRA) is already in place Das leaves at the end of six The latest public offering comprises a mix of 90 narrow body A320
with Russia, the next one will be years at its helm. Rajasthan cadre officer has from the US-based private family aircraft including A321 , and 10
signed with South Africa, one of the Malhotra becomes the latest previously led the department equity firm, the listing of dia- widebody A350 planes. >P5
two people said. “This is expected by finance ministry official to of financial services and mond and jewellery certifica-
the end of January 2025. Work has steer RBI, after outgoing gov- worked across power, mining tion firm International Gem- Mahindra’s undertaking to not
already started to sign a similar deal ernor Das, as well as previous and information technology. mological Institute (IGI), will
with Brazil,” the person said on the governors D. Subbarao, Y.V. Like Das, Malhotra will have be its seventh profit booking
use ‘6E’ for EVs gets Delhi HC nod
condition of anonymity. Reddy and Bimal Jalan. The to deal with stubborn food pri- milestone this year. The Delhi High Court on Monday recorded an
This may be followed by negotia- SMOOTH SAILING officials come with a deep ces that have pushed headline The selloffs assume signifi- undertaking from Mahindra Electric
tions for a similar pact with China, understanding of fiscal mat- inflation beyond the monetary cance as Blackstone is in the Automobile Ltd, agreeing not to use the “6E”
a deal is likely with after the pact, India India’s wide MRA trademark for its upcoming electric car
India’s immediate neighbour and China as well, India’s will speed up customs network will reduce ters and the pressures on the policy committee’s (MPC) flex- process of raising its third Asia model, the BE 6, during the pendency of a
biggest trading partner. biggest trade partner clearances for AEOs compliance burden government, even as they take ible target of 2-6%. In October, fund targeting at least $10 bil- lawsuit filed by InterGlobe Aviation Ltd. >P5
Once the agreements are signed, the reins of India’s inflation- inflation as measured by the lion, according to news
India would speed up customs clear- targeting central bank. consumer price index was reports. Typically, investors
ances for so-called authorized eco- available to Indian merchants, cus- remained unanswered. Malhotra, who currently 6.21%, higher than 5.49% in want to see previous fund exits Car sales slide 14% in Nov as
nomic operators (AEOs) from these toms brokers and logistics players Extending customs-related privi- oversees the Centre’s direct September. The panel now at the time of new fundraising. inventory pile-up persists
countries, reduce inspection levels, involved in trade with the partner leges is common in international and indirect tax administra- expects retail inflation to sof- IGI will launch its initial Retail sales of passenger vehicles fell 13.72%
allow deferred duty payments and country. trade to boost goods movement. The tion, will serve for three years public offering (IPO) today to year-on-year in November, reflecting
quicker tax refunds for their partners Queries emailed to the Central European Union operates an AEO beginning Tuesday, the TURN TO PAGE 6 raise ₹4,225 crore. Of this, subdued post-festive demand and lingering
in India who are not covered by Board of Indirect Taxes and Customs scheme across all its member states. appointments committee Blackstone will pocket ₹4,050 inventory challenges, according to data
India’s own AEO programme, and (CBIC), Union finance ministry and Countries including China, Singa- comprising Prime Minister crore ($477 million at the released by the Federation of Automobile
Das’s legacy; New faces at Dealers Associations (FADA) on Monday. >P5
accept self-declaration on the origin the Chinese embassy in New Delhi Narendra Modi and home MPC >P6 See edit >P12
of goods. The same benefits will be seeking comments for the story TURN TO PAGE 6 minister Amit Shah said. The TURN TO PAGE 6
02 TUESDAY, 10 DECEMBER 2024
NEW DELHI ECONOMY & POLICY LIVEMINT.COM

‘Centre, state, CPSE capex Coal corridors

suggested to meet
growth may slow in FY25’ power demand
Rituraj Baruah
[email protected]
NEW DELHI
The likelihood has prompted policymakers to address the slowdown in the Union budget.
T
Weaker urban demand was he standing committee
among reasons for Q2 GDP on coal, mines and steel
growth decline. Rhik Kundu FY 2023-24 at ₹295.36 trillion. has recommended dedi-
MINT
Tight leash
[email protected]
Capex by central infrastructure ministries, CPSEs and state governments is
India’s gross domestic product (GDP) cated coal corridors and real-
Q2 growth NEW DELHI expected to fall below the five-year high of 5.87% of GDP achieved in FY24 growth slowed to 5.4% in the September
quarter, down from 6.7% in the previous
time tracking systems to bol-
ster coal transportation and

C
Infrastructure investment (in ₹ trillion)* % of GDP
apital expenditure by cen- quarter, marking the slowest pace in address India’s growing energy
below tral infrastructure minis-
tries, central public sector
20

5.8
5.9 6
nearly two years due to a downturn in
manufacturing, urban consumption
needs.
In its latest report on
16 17.3
expected enterprises (CPSEs) and
state governments is
expected to slow in FY25 after rising to 12
5.6 and corporate earnings.
In FY24, India recorded a GDP
growth of 8.2%, with quarterly growth
demands for grants for FY25,
the parliamentary panel high-
lighted how these measures
Dedicated coal corridors will
ease the fuel’s movement. MINT
11.6
number: a five-year high of 5.87% of GDP in FY24
due to reduced spending in the first two
8
5.2
rates of 8.2% in Q1, 8.1% in Q2, 8.6% in
Q3, and 7.8% in Q4.
could optimize routes, improve
transparency, and enhance the
report said. The panel recom-
mended prioritizing rail-based
quarters, two people familiar with the 4.8 According to a November report by monitoring of coal movement coal corridors to reduce road
SBI CAPS matter said.
The likelihood has prompted policy-
4
CareEdge, India’s public capital
expenditure (capex) saw a notable
across the supply chain.
The recommendations
dependency and cut transpor-
tation times.
0 4.4
makers to address the slowdown in the 2019-20 2023-24** decline in the first half of FY25, with come as India’s coal production For regions reliant on road
Rhik Kundu upcoming Union budget. *Includes capital expenditure by central infrastructure ministries, central ** Revised estimate central Capex shrinking by 15.4% and hits record highs, following the transport, it suggested rein-
public sector enterprises (CPSEs) and state governments Source: Ministry of finance
[email protected] In FY24, capital expenditure by the aggregate state capex falling by 10.5% supply crisis of September-Oc- forcing concrete roads with
SARVESH KUMAR SHARMA/MINT
NEW DELHI Centre, CPSEs, and state governments year-on-year. tober FY22. Domestic output is durable surfacing to mitigate
reached ₹17.35 trillion, or 5.87% of GDP, targeted levels mentioned in the last During FY25, a realistic target for the During the April-September period, expected to surpass 1 billion wear and tear caused by heavy

T
he Indian economy faced marking an increase from ₹13.57 trillion, annual budget, the first person men- capital expenditure by central infra- the Centre achieved only 37% of its bud- tonnes for the first time in coal-laden vehicles.
a sluggish start to FY25, or 5.03% of GDP, in FY23, according to tioned above said. structure ministries, CPSEs and state geted capex target, while 20 major states FY25. Mechanized loading sys-
with Q2 GDP growth fall- data from the Ministry of Finance. ”While the overall capital expendi- governments is expected in the ₹18-₹19 collectively met just 28%. The measures could also tems, a cornerstone of the gov-
ing below expectations due to Capital expenditure had fluctuated in ture (by the Centre, states and CPSEs) in trillion range in FY25, both the people The report noted a marginal recovery facilitate better coal delivery to ernment’s coal logistics plan,
monsoon disruptions, subdued the preceding years. In FY20, it FY25 is expected to meet the tar- mentioned above added. in public capex in the September remote coastal regions, where also came under focus. Known
government spending, weaker stood at ₹11.57 trillion, or get or reach close, the growth According to the latest quarter, driven by a 10.3% several power plants are heav- as first-mile connectivity
urban demand and a slowdown 5.76% of GDP, which could be lower than the budget documents, the year-on-year growth in ily reliant on imported coal. (FMC), these systems aim to
in lending, SBI CAPS said in a
report on Monday.
decreased to ₹10.70 tril-
lion, or 5.39% of GDP, in ₹17.35
Capex by Centre,
previous fiscal,” the first Centre's capital expendi-
tn person mentioned above ture plans stand at about tn central
Capex by Centre,
₹13.57capex.
Meanwhile, state capex
“The committee notes the
significant strides made by the
streamline coal evacuation and
minimize manual intervention.
But it also highlighted FY21. The figure then said on the condition of ₹11.11 trillion during FY25, continued to contract, ministry in modernizing coal The government’s push for a
improvements in high-fre- rose again to ₹12.57 tril- CPSEs and states in anonymity. up from ₹10 trillion in the CPSEs and states in falling by 3.8% year-on- transportation infrastructure railway-based logistics model
quency indicators such as auto lion, or 5.33% of GDP, in FY24 ”The Centre will con- previous year. FY23 year, during the same to meet the growing demands under FMC projects is
sales and fuel consumption in FY22. tinue its capital expenditure The capital expenditure period. of the sector. expected to reduce rail costs by
October-November 2024, sig- To be sure, the Indian econ- push in the upcoming budget plan for 20 major states during However, the central gov- “However, certain challen- up to 14%, saving an estimated
nalling the prospects of a omy was recovering from the pan- to bolster economic growth, while FY25 stands at about ₹8.5 trillion. ernment's capex is expected to ges persist, such as road dam- ₹21,000 crore annually. By
recovery in the second half of demic during FY21 and FY22. also encouraging states to follow suit A ministry of finance spokesperson surge by 25% on-year during October- age, coal spillage, and logistical FY30, the government aims to
the fiscal year. Capital expenditure by the Centre, through initiatives such as the ‘Special didn't respond to emailed queries. March, according to a recent report by inefficiencies, which require achieve 90% mechanized coal
“The Q2GDP slowdown which saw a significant decline in the Assistance for Capital Investment’ The GDP for Budget FY2024-25 is Jefferies. targeted interventions to fur- loading and evacuation.
stems from four key factors: first half of FY25, is anticipated to scheme and interest-free loans,” the first estimated at ₹326.37 trillion which is For an extended version of this story, go ther enhance the system’s effi- For an extended version of
monsoon disruptions hitting improve in the second half, to meet the person mentioned above added. 10.5% over the provisional estimates of to livemint.com. ciency and sustainability,” the this story, go to livemint.com.
industry (industry GVA at a
7-quarter low of 3.6% y-o-y),
subdued government spending
stalling capex, weakening
urban demand curbing con-
sumption, and lending slow-
Official monthly jobs data from FY26 Govt okays rules for exploring
down due to RBI norms,” it
said.
The report titled FY25 - A
Zia Haq
[email protected]
mended by an expert panel for
the monthly surveys will
oil and gas deposits in forests
tale of two halves or one of full NEW DELHI largely remain the same as the
despair? however warned that one used for quarterly surveys, Jayashree Nandi The divisional forest officer,

O
external volatility remains a fficial data on job cre- a second official said. These [email protected] within a period of one month
risk, and is expected to have a ation and unemploy- gauge employment based on NEW DELHI after receiving of the proposal,
major impact in FY26. ment will be available “current weekly status or shall record his observations

T
SBI CAPS is a wholly-owned every month, likely from April CWS”. he Union environment and recommendations and
banking subsidiary of the State next year, as the government For job surveys, statisticians ministry has stream- directly forward the online
Bank of India (SBI). has signed off a proposal to pick different reference peri- lined the approval pro- application to the nodal officer
“The US President-Elect’s increase the frequency of the ods, depending on what they cess for surveys and explora- along with a demand for mak-
comments on tariffs and Periodic Labour Force Survey, want to assess. A reference tory drilling in forest areas to ing the payment of net present
de-dollarization have sparked or PLFS, the statistics minis- period of CWS means the search for oil and gas, accord- value (NPV) and other com-
debate, but market volatility try’s quarterly assessment of PLFS considers a person ing to a letter sent last month pensatory levies (to be paid
has remained subdued. How- the labour market, two offi- employed if he or she had been to the principal secretaries and against diversion of forest
ever, a few emerging market cials said. engaged in any economic additional chief secretaries land), as applicable, it said.
currencies are already feeling On 13 August, Hindustan The government has signed off the proposal to increase the activity in the week prior to the (forests) of all states and Union The nodal officer, after
the heat," the report said. Times reported that the Rao frequency of Periodic Labour Force Survey. HT survey and is particularly rele- territories (UTs). receipt and examination of the
"Even as the US faces risks Inderjit Singh-headed Union vant for high-frequency data. Hindustan Times reported The environment ministry has proposal from the divisional
from imported inflation, and ministry of statistics and pro- The Centre for Monitoring government departments, The PLFS annual report on on 5 August that the ministry’s exempted surveys involving forest officer, within a period
China is ramping up stimulus, gramme implementation, as Indian Economy, a private- state-level officials, econo- employment and unemploy- FAC (forest advisory commit- felling of up to 100 trees. MINT of 15 days, shall give permis-
market stability is expected to part of a series of reforms, had sector data firm, is currently mists and the industry,” one of ment rates is based on both tee) had exempted surveys sion, through the Parivesh
hold for now. We anticipate decided to conduct the PLFS the only provider of monthly the officials said. CWS and usual status (US), involving drilling and felling of timelines to state governments portal along with a demand for
volatility will pick up once Mr more frequently than it cur- unemployment data. The firm Joblessness in urban areas which is a ref- up to 100 or Union territories to permit making the payment of NPV
Trump takes office in Jan’25 rently does. however uses a during July-Sept erence period trees for pros- such projects. and other compensatory lev-
and his policies begin to Aside from putting out wholly different Urban joblessness 2024 stood at of 12 months. p e c t i n g It has asked states to autho- ies, the letter added.
unravel," it added. PLFS-based urban-jobs data statistical model during July-Sept 6.4%, compared Since in a hydropower rize the nodal officer dealing “We had sought streamlin-
India’s real GDP grew by on a three-monthly basis, the from the one 2024 stood at to 6.6% in the largely informal economy, and other development pro- with land diversion under the ing and relaxation of environ-
5.4% in the September quarter, ministry currently also pub- used by the gov- 6.4%, compared same period last people tend to do multiple jects in forest areas from Van (Sanrakshan Evam Sam- mental permits for all miner-
the slowest in nearly two years, lishes an annual PLFS report ernment. year, according to jobs, the US is divided into obtaining prior clearance. vardhan) Adhiniyam “to grant als. This will help exploration
with 6.6% in the principal status and subsidiary
due to a slowdown in manufac- that contains data on rural “Both urban the latest PLFS The FAC noted that such permissions” to proposals of of iron ore, bauxite, coal and all
turing, urban consumption and employment-unemploy- and rural same period data. According status. preliminary drilling is crucial survey and exploratory drill- other critical minerals. For oil
low corporate earnings, ment scenarios. employment and last year to CMIE data, Principal status considers for project design, preparation ing in a forest area involving and gas, the streamlining is
showed the MoSPI data Lack of official high fre- unemployment unemployment the major portion a person of a detailed project report and drilling of a 25-bore hole of being done through an
released last month. quency—or frequently availa- data will be avail- rate in Asia’s worked in a year, while subsid- estimating the financial provi- 4-inch diameter per 10sq. km, amendment which separates
Gross value added (GVA) ble—data on India’s labour able on a monthly basis from third-largest economy fell to iary status considers a person sions of the proposed develop- 80 shot hole of 6.5-inch diam- the oil and gas sector from the
grew by 5.6% in the September market tends to stymy policies most likely around the begin- 8% in November 2024 against employed even if he or she ment project. eter per sq. km and/or felling mining sector completely,”
quarter, down from 7.7% in the and stock-taking of employ- ning of the next fiscal year. It 8.7% in October. worked for a far shorter dura- Now, the ministry has of 100 trees in the entire pros- said an industry body member
same period last year. ment generation, analysts say. will fulfil a widely-felt need of The methodology recom- tion. issued detailed guidelines and pecting/survey area. who declined to be quoted.

Centre moves to discourage

m MINT SHORTS pulses, oilseeds, and coarse cereals, is progressing stead-
ily across the country, supported by abundant soil mois-
ture from surplus monsoon rainfall and favourable mar-
India, Aus review pact for
economic cooperation import of Chinese solar cells
MINT
CORRECTIONS AND
CLARIFICATIONS
ket prices. But there is a decline in the sowing area of oil- @DOC_GOI/X New Delhi: The Centre on Mint welcomes comments,
PM Modi launches insurance seeds, despite the government’s target to achieve self- Monday moved to curb suggestions or complaints
sufficiency in edible oils by 2030, through various imports of Chinese solar cells, about errors.
awareness scheme for women initiatives. DHIRENDRA KUMAR stating only specific models
Readers can alert the
Panipat (Haryana):Prime Minister Narendra Modi from approved manufactur-
newsroom to any errors in the
inaugurated the Bima Sakhi Yojana, an initiative of the ers can be supplied to govern- paper by emailing us, with your
PTI Life Insurance Corp. of India MFI disbursals drop 10% in Q2 ment-backed projects from 1 full name and address to
to empower women through June 2026. The Union minis-
financial literacy and insur-
as credit quality takes a hit try of new and renewable energy attributed its decision
[email protected].

ance awareness. “The Bima Mumbai: Disbursements by microfinance institutions to the increase in domestic capacity to make solar cells. It is our policy to promptly
respond to all complaints.
Sakhi Yojana will not only dropped by more than 10% in July-September compared RITURAJ BARUAH
Readers dissatisfied with the
provide employment but also with the year-ago period as the industry started witness- response or concerned about
enhance women’s role in ing stress on asset quality. The proportion of loan New Delhi: India and Australia conducted a Mint’s journalistic integrity may
financial inclusion,” Modi MINT amounts unpaid for 31-180 detailed review of their Comprehensive Economic PSB loan write-off in the first write directly to the editor by
said. days more than doubled to Cooperation Agreement during a three-day meet- sending an email to
DHIRENDRA KUMAR
4.4% as of 30 September as ing held from 4 to 6 December, the ministry of
half of FY25 at ₹42,000 crore [email protected]
against 2% in the year-ago commerce and industry stated on Monday. The New Delhi: Public sector banks have written off loans Mint’s journalistic Code of
Rabi crop sowing up by 1.5%, period, data shared by Micro- countries evaluated critical areas under the pact, worth ₹42,000 crore in the first six months of the cur- Conduct that governs our
finance Industry Network including trade in goods and services, mobility, rent fiscal, Parliament was informed on Monday. Among
but oilseed area shows decline (MFIN) on Monday showed. and agri-tech cooperation, it added. RHIK KUNDU others, State Bank of India wrote off loans worth ₹8,312
newsroom is available at
www.livemint.com
New Delhi: The sowing of rabi crops, including wheat, PTI crore, and Punjab National Bank, ₹8,061 crore. PTI

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LIVEMINT.COM DEALS, TECH & STARTUPS TUESDAY, 10 DECEMBER 2024
NEW DELHI 03

PE investors to win big Global

investors see
in Sai Life Sciences’ IPO India as key
mkt: report
Priyamvada C.
[email protected]
TPG Asia, HBM stand to make gains of 4x to 13x at upper end of price band Bengaluru

G
lobal investors are
Priyamvada C. increasingly seeing
[email protected] attractive opportunities
Bengaluru for private equity (PE) invest-
ments in India followed by

S
ai Life Sciences investors such as Japan and South Korea within
TPG Asia and HBM Private Asia Pacific private markets,
Equity India are expected to according to an analysis by
make windfall gains in the investment firm Coller Capital.
company’s ₹3,000-crore initial Nearly two-thirds, or 68%, of
public offering (IPO) that opens for sub- respondents see an improving
scription on Wednesday, according to a risk to reward balance in India,
Mint analysis. followed by the other Asia
The IPO consists of a fresh issue of Pacific markets, the report said.
shares worth ₹950 crore and an offer for The limited partners in these
sale (OFS) of 38.1 million shares with a face regions have shown the strong-
value of ₹1 each, bringing the total issue est appetite for secondaries
size to ₹2,940-3,043 crore. The company with about 42% planning to
plans to use 75% of the IPO proceeds to boost allocations ahead of other
repay or prepay in full or part certain out- developed nations like Europe
standing borrowings, and the remaining (38%) and North America (13%).
for general corporate purposes. The survey has a sample size of
The company has fixed the price band 107 private capital investors
at ₹522 to ₹549 per equity share. At the from around the world and
upper end of this range, Sai Life Sciences Sai Life Sciences’ IPO consists of a fresh issue of shares worth ₹950 cr and an OFS of they oversee a combined value
will have a market capitalization of ₹11,419 38.1 mn shares with a face value of ₹1 each, bringing the total issue size to about₹3,000 cr. of $1.9 trillion in assets under
crore. TPG Asia and HBM Private Equity management (AUM).
India will sell about 29.3 million shares $135 million in Sai Life Sciences for a manufacturing of small-molecule new “I think India is a very inter-
combined under the OFS component. 43.4% stake. HBM Private Equity India chemical entities (NCEs). esting market when it comes to
With an average acquisition price of had a 6% stake, while the balance was held As a contract research, development private investments. The coun-
₹127.27 and ₹42.71, respectively, they by the founder family and promoter and manufacturing organization try has been getting a lot of
stand to make gains of 4x to 13x at the group. Earlier this year, American private (CRDMO), the company uses its expertise attention from global as well as
upper end of the price band. equity major Bain Capital was the fron- to address critical challenges in health- domestic investors who have
The OFS also includes the sale of 6.4 trunner to acquire a majority stake in the care. It works with global pharmaceutical expressed intent to increase
million shares by promoter and biotech innovators, and presence,” William Yea, invest-
group Sai Quest Syn Pvt. Ltd THE IPO GAME has more than 170 pharma- ment principal at Coller Capi-
(average acquisition price: ceutical products in its port- tal, told Mint.
₹10.11). Other shareholders SAI Life Sciences AT the upper end of TPG Asia and HBM folio, including 38 products “Additionally, the public
has fixed the
who will sell shares include band for its IPO at price this range, the Private Equity India for manufacturing 28 com- markets are also able to offer
company will have a will sell 29.3 million
Bharathi Srivari (₹1), Raju ₹522 to ₹549 per market capitalization shares under the mercial drugs. great exit opportunities for a lot
Penmasta (₹0.82), Jagdish equity share of ₹11,419 crore OFS component Sai Life Sciences reported of these managers which con-
Viswanath Dore (₹127.30), revenue from operations of trasts with the other Asian mar-
Rajagopal Srirama Tatta ₹1,465.1 crore in FY24, up kets that do not have the same
(₹6.78) and Dirk Walter Sartor (₹10.40) company while TPG and other investors from ₹1,217.1 crore a year earlier. vigour currently,” he said, add-
The company has appointed Kotak were looking to make a complete exit, Profit rose to ₹83 crore from ₹9 crore over ing that India, unlike other Connecting you to Global Insights!
Mahindra Capital, IIFL Capital Services, according to a report by Moneycontrol. the same period. In the six months to markets, has shown a strong
Jefferies India and Morgan Stanley India Founded in January 1999, Hyderabad- September, it reported revenue of ₹675.2 rebound and an ability to offer Discover comprehensive business news & perspectives
to help with the IPO. Its shares are based Sai Life Sciences Ltd collaborates crore against ₹642.3 crore in the same liquidity to companies at an
curated by the Leaders in Journalism
expected to list on the BSE and National with leading pharmaceutical and biotech- period last year. earlier stage.
Stock Exchange on 18 December. nology companies, offering services in For an extended version of this story, go to For an extended version of
In 2018, TPG Capital invested around drug discovery, development, and the livemint.com. this story, go to livemint.com.

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04 TUESDAY, 10 DECEMBER 2024
NEW DELHI MARK TO MARKET LIVEMINT.COM

S&P BSE Sensex Nifty 50 Nifty 500 Nifty Next 50 Nifty 100 S&P BSE Mid-cap S&P BSE Small Cap
CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE

81,508.46 -0.25 24,619.00 -0.24 23,292.00 -0.09 72,708.10 -0.45 25,594.20 -0.27 47,821.82 0.32 57,313.61 0.46
PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN

81,709.12 81,602.58 24,677.80 24,633.90 23,312.10 23,289.40 73,040.40 72,894.50 25,663.90 25,622.75 47,669.72 47,738.75 57,050.71 57,250.66
HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW

81,783.28 81,411.55 24,705.00 24,580.05 23,351.90 23,243.30 73,001.40 72,538.60 25,687.65 25,556.05 47,888.43 47,658.13 57,405.83 57,124.38

Pre-policy Nifty
Godrej adds to FMCG gloom option volatility
Pallavi Pengonda
[email protected]
Under pressure
GCPL’s India business is expected to
inflation cycle reversed, it recouped earnings multiple of 53x.
the majority of the losses in FY24 GCPL’s stock is down 27% from its
(standalone/consolidated gross mar- 52-week high of ₹1,541.85 on 11 Sep-
may face scrutiny
see flattish volume growth in Q3FY25.

S
hares of Godrej Consumer gin expansion of about 600-700 tember. Needless to say, a recovery in Ram Sahgal & Neha Joshi
Domestic volume growth (in %)
Products Ltd’s (GCPL) bps). Currently, palm oil is inflation- soaps, especially in the light of ele- MUMBAI
plummeted over 8% on 15 ary while crude prices have been sta- vated competition from Hindustan

T
Monday after it warned of ble to benign,” it added. What also Unilever Ltd (HUL), and the growth he advent of single-ex-
weaker margin and vol- helps this time is that GCPL’s inter- trajectory of the HI category are key. piry index options last
10
umes in the three months to Decem- national business mar- GCPL’s commentary week introduced a fresh
ber (Q3FY25). After market hours on gins are in a better shape. TROUBLE IN adds to the already sub- layer of volatility to the Nifty,
Friday, GCPL said its India business 5 Indonesia is likely to THE BASKET dued sentiment on the which witnessed dramatic
is expected to report flattish volume deliver mid-single digit sector’s demand condi- price swings a day ahead of the
growth this quarter. For perspective, volume growth in Q3. Q3 volume growth is tions. Shares of other Reserve Bank of India’s bian-
in the first half of FY25, GCPL’s 0
Q1FY23 0 The GAUM (Godrej expected to be
impacted by a poor
FMCG companies, nual policy announcement on
domestic volumes grew 7-8%. Q3FY25 Africa, USA, and Middle show in soaps and including HUL, also fell 6 December. The unusual gyra-
estimated
Q3 volume growth is expected to East) organic business is home insecticides on Monday. “The release tions likely caught the atten- Traders appeared to double
be impacted by a poor show in the -5 expected to see volumes from GCPL will likely tion of regulators, including the down on Nifty contracts,
soaps and home insecticides (HI) seg- -6 drop. GCPL’S commentary raise concerns on the Securities and Exchange Board analysts noted. AP
adds to the already
ments. Soaps form a third of India GCPL’s update subdued sentiment industry as a whole, of India (Sebi) and stock
-10
business and the 20-30% on-year Shares of GCPL plummeted over 8% prompted analysts to cut on the sector’s given mixed signals on exchanges, according to deriv- the Nifty swung 562 points
Source: Company, JM Financial
rise in palm oil and derivatives prices on Monday. MINT their earnings estimates. demand conditions demand pick-up,” said atives analysts. between an intraday high of
has hurt. To offset surging costs, SATISH KUMAR/MINT
Nomura Global Markets Jefferies India’s analysts. Traders, previously focused 24,857.75 and a low of
GCPL hiked prices, lowered the The inflationary environment is over margins. “GCPL’s raw material Research cut its FY25-27 “Of course, GCPL’s man- on the now-discontinued 24,295.55 before closing at
grammage of key packs, and reduced putting pressure on margins. Stan- basket saw steep inflation in FY21/22 forecast for earnings per share by agement has attributed the pain weekly Bank Nifty options, 24,467.45, just 10 points above
trade schemes. This reduced inven- dalone Ebitda margin is expected to with sharp uptick in both palm oil as about 8%. It reduced the premium points to specific issues in both cate- appeared to double down on its previous close. Despite the
tory across wholesale and household be below the normal range of well as crude. As a result, we had seen assigned earlier to GCPL’s India and gories, some of which would also Nifty contracts, driving the vol- smart intraday recovery, option
pantry. Further, a delayed winter in 24-27%. Notably, the margin in the standalone/consolidated gross mar- international EV/Ebitda multiples to impact peers. In addition, recent ana- atility, analysts noted. prices fluctuated wildly.
north India and a cyclone in the base quarter of Q3FY24 was high at gin compression of about 700- 39x and 35x (from 41x and 37x) to lyst meetings (HUL, Colgate) have “With multiple index option A social media post by a Sebi-
south have not been conducive to about 30%, helped partly by favora- 800bps over FY19-23,” said a JM arrive at a sum-of-the-parts-based not provided confidence in a recov- expiries behind us , it looks like registered research analyst
growth in the HI segment, which ble commodity prices. Financial Institutional Securities revised target price of ₹1,450 (₹1,550 ery, at least as yet,” they added in a traders specialised in trading encapsulated the volatility. The
makes up a third of India business. But investors should not lose sleep report dated 8 December. “Once the earlier), implying a target price-to- report on 9 December. weekly Bank Nifty option con- Nifty 24,600 strike put option
tracts shifted to the Nifty on expiring on 5 December surged
Thursday, before the RBI from ₹5 to ₹267 in nine minutes
meeting, causing option prices through 2:58 pm as the index

Vodafone Plc’s stake sale may ease Indus’s chronic pain to swing wildly,”
said Rajesh Palv- Index options
iya, senior vice trading surged to m a r k e t
fell from its high.
By 3:15 pm, as the

president and 823.4 mn last rebounded, the

Ashish Agrawal potential dividend of ₹3,600 get price will fall to ₹380, said enue per tower (ARPT) in Q2. head of technicals
Climbing down Thursday versus same contract had
[email protected] crore for the rest of FY25. the analysts in a 5 December It dropped 5% year-on-year. & derivatives at dropped to just
Indus Towers’ receivables have fallen in the past two quarters 538 mn on 4 June ₹0.05.
Indus owned and operated with repayment of overdues by Vodafone Idea.
report. While the total number of Axis Securities.
Palviya believes after BJP fell short

I
ndus Towers Ltd is set to get nearly 230,000 towers at Sep- After rallying about 80% so towers rose 12%, the number “The huge vol-
some relief from Vodafone tember end, with an average Receivables (in  crore)
far in 2024, Indus’s shares of tenants increased at a lower that regulators of majority alone atility would have
12,000
Plc’s announcement that it tenancy ratio of 1.65. Vi now trade at about ₹362 rate of 7%, implying lower rev- will closely moni- come on the regu-
will sell its stake of 3% in the accounts for 32% of Indus’s 9,000
apiece. Investors have been enue from newer towers, tor whether this latory radar ,
company. Out of the esti- tenancy but had been facing excited about the improving although projected to was a one-off event or indica- given its recent directives
mated proceeds worth ₹2,800 cashflow issues until a few 6,000 FCF outlook. Note that Indus increase going forward. tive of a pattern. aimed at curbing retail frenzy
crore, an amount of ₹1,900 quarters ago, leading to a completed ₹2,600 crore share “We expect our loading Data from the NSE shows the in options trading. A possible
3,000
crore would be used to repay pile-up of dues. The reduction buyback in the September revenues to be gradually sup- number of index options con- increase in margins for in-the-
Vodafone Idea Ltd’s (Vi) past in past dues could also help Vi 0
quarter (Q2FY25). According plemented by a demand for tracts traded last Thursday money strikes can't be ruled
dues to Indus, which stood at in its efforts to raise debt for its Q1FY23 Q2FY25 to Bloomberg data, the stock new sites once a certain pene- soared to 823.4 million com- out,” said the derivatives
₹3,500 crore in September. expansion plan, which, in Receivables includes provisions Source: Company, trades at an enterprise value of tration level is achieved to aid pared with 538 million on 4 research head at a large brok-
made for bad debt Motilal Oswal Financial Services
The development can boost turn, also means a better 6.7x its FY26 estimated the network decongestion,” June, the day after Lok Sabha ing outfit on the condition of
Indus’s FY25 free cash flow growth outlook for Indus. SATISH KUMAR/MINT
Ebitda, which seems pricey. the management said in its Q2 election results showed the BJP anonymity. An in-the-money
(FCF) to ₹6,200 crore, said Much depends on Vi’s debt ing ₹1,980 crore through issue ful debt raising by Vi. But if Vi's debt-raise would be an earnings call. JPMorgan pro- falling short of a majority. call option is one where the
IIFL Securities Ltd, adding raising which should become of fresh shares. IIFL’s Decem- Vi’s debt raising fails to mate- important cue for investors. jects ARPT to grow 5% While the market had strike price is below the current
that the firm has a payout pol- easier with the company’s ber 2025 target price for Indus rialize and it is forced to cut its The company has seen a on-year in FY26 after falling tanked 1,379 points to 21,884.5 market price (CMP), while an
icy of 100% of FCF, implying a announcement that it is rais- is ₹445 that assumes success- capex programme, IIFL’s tar- moderation in its average rev- 3.6% in FY25. on 4 June, it subsequently ral- in-the-money put option has a
lied 20% to a fresh high of strike price above the CMP.
26,277.35 by 27 September. A Sebi official didn’t respond
Mark to Market writers do not hold positions in the companies discussed here unless otherwise informed On 5 December, a day before to a request for comment.
RBI held policy rates steady, [email protected]

Former Swiggy CTO launches Why Raamdeo Agrawal is betting on Asian Paints
stock-trading platform Sahi Satish John & Dipti Sharma
MUMBAI
amount of money, with losses to China or Korea, and if
reaching ₹60,000-70,000 they reenter India there
crore. So, within the banking would be a hefty premium
Mansi Verma

T
here is one company that sector, you had both major to that--perhaps when Nifty
[email protected] market veteran Raamdeo wealth creators and notable is at maybe 30,000. What
MUMBAI Agrawal sorely misses wealth destroyers. This kind of would prompt FIIs to come
not investing in at the right dynamic is always a possibility. back to India at such ele-

D
ale Vaz, a former chief time: Asian Paints Ltd. “It is You very early on identified vated levels?
technology officer really iconic. I missed it three Hero MotoCorp as a blue- I believe if corporate earn-
(CTO) of e-commerce times. I am watching it from the chip opportunity. In today’s ings grow by 15-20%, foreign
company Swiggy, launched a 1980s and I have still not made market, do you see similar investors will return to India.
stock trading platform Sahi on a single penny out of it. But this return potential in any of There’s no doubt they will
10 December, after raising $7 time, I think I am going to make the newly listed or IPO- eventually come back. As
million in its seed funding money.” bound companies? global allocations to India

‘
round last year. Agrawal is banking on the In the ‘90s, markets were decrease and the market
“A lot of people, especially “bruised blue chips” theory—or very young, rises, they will
from the younger generation, investing in quality, large com- small, and quite need to allocate
share a passion for making their panies when they go through a is your key to profiting from Over two years, that equates to cheap. Institu- The beauty of more to India,
money work for them. How- lean patch. “Nothing comes to these blue chips? a 40% annualized return; over tional investors buying a bruised especially since
ever, publicly available data Dale Vaz and Manish Jain (R), cofounders of Sahi. my mind which is that bruised For our analysis, we’ve three years, it’s around 25%. If were few, mutual blue chip is that we represent
shows that individual traders a blue chip besides Asian defined blue chips as the top 50 the stock falls by 75% (to ₹25) funds were prac- only about 3.5%
are currently losing money," Both co-founders, Vaz and Jain, ered on time, and we're bring- Paints,” he said, referring to a NIFTY companies or those and recovers, it can triple. tically non-exis- the downside is of global market
Vaz told Mint. have experience as retail trad- ing that same level of focus and near 30% year-to-date decline with an average return on While there is no exact for- tent, and invest- limited, while the cap. Their alloca-
A recent Securities and ers in the stock market, with dedication to Sahi,” said Vaz. in the shares of Asian Paints as equity (ROE) of over 20% for mula, the trick is to buy when ing was largely upside is unlimited tions might still
Exchange Board of India (Sebi) Vaz actively trading to this day. Sahi has acquired registra- consumption growth eased. the past 10 years. This is a strin- the stock is near its point of an individual be around 1-2%,
Raamdeo Agrawal
study revealed that over 1 crore Sahi's mobile trading termi- tion with NSE, BSE and has also The chairman and gent criterion. Essentially, maximum pessimism. Since pursuit. This Chairman & cofounder, so there’s room
F&O traders lost ₹1.81 trillion nal offers AI-driven market secured the depository licence cofounder of Motilal Oswal companies that meet both size these are blue chips, they are made the mar- Motilal Oswal for more invest-
during FY22-FY24, with 91% insights, in-house charting and from Central Depository Servi- Financial Services sat down and profitability benchmarks unlikely to die, ensuring your kets reasonably ment.
losing money in FY24. execution tools, integrated ces Ltd to operate as a Sebi-reg- with Mint at his office in Mum- qualify as blue chips. money remains relatively safe. priced and filled However, I am
Vaz, along with Manish Jain, market scanners, and a cus- istered broker, said Vaz. bai’s Prabhadevi to discuss the From a pool of the top 250 The downside risk is mini- with opportunities. worried that so much money is
former vice-president of Kotak tomizable interface. The The platform will compete 2024 wealth-creation study. companies, we identified 107 mal, but the potential for an Markets now are much more currently flowing into the US...
Securities, have mobile app is now with Zerodha and Groww. Citing how his earlier strat- that meet these criteria, show- asymmetric upside is huge. developed, with complex and At some point, the tide will
raised funds from Sahi has acquired available for According to the latest data col- egy differed from that of his late casing stability The report liquid entities like insurance shift, and foreign investors will
investors includ- registration with download on the lated by Motilal Oswal, the mar- friend Rakesh Jhunjhunwala’s, and a competi- m INTERVIEW mentions that companies adding layers of want to come back. By then,
ing Accel and Ele- NSE and BSE, and Apple's App Store ket share of Groww stood at he said, “I always wanted to buy tive edge. But financials are efficiency. The deep underval- domestic investors will already
vation Capital to has also secured and Google Play 25.1%, while Zerodha's slipped blue chips in good shape, so I no blue-chip both the big- uation seen in the mid-’90s is be active.
build Sahi. The Store. to 17.1% in July. used to pay full price.” company is immune to challen- gest wealth destroyer and rare to find today. Back then, it Foreign investors often pre-
the depository
company aims to Vaz joined “Most brokers have created But the beauty of buying a ges. Every company experien- the largest wealth creator. was possible to identify iconic fer to buy when domestic
empower such licence from Swiggy in 2018 as one blanket solution which bruised blue chip is that the ces rough patches—what we This is intriguing since leadership companies with investors are selling... Once
active investors CDSL the head of engi- works for everyone, but they've downside is limited, while the call “bruising times”. These financials are being viewed high ROEs of 25-30% at very both domestic and foreign
and traders with neering and data not handcrafted it for a particu- upside is unlimited, he said. It bruises can stem from internal as a major theme for 2025. attractive valuations—for investors want to buy, promot-
access to profes- science, and lar user cohort or user segment. all depends on a bit of luck and issues, external factors, or over- What you’re asking about example, companies valued at ers will likely start selling,
sional-grade tools. stepped into the role of group We are trying to do that,” Jain brilliance in choosing the right all market downturns. During relates to the last five years. just ₹1,000 crore with profits which will drive prices higher.
“It's about combining CTO in early 2020. He oversaw told Mint. stock, Agrawal said. such periods, stock prices can During that period, ICICI and exceeding ₹100 crore. [email protected]
sophistication with simplicity, the technology operations for The duo is using the funds Edited excerpts: drop significantly—sometimes several other large banks gen- Such opportunities are
allowing people to access these Swiggy Food, Swiggy Instam- raised to enhance product fea- When most market mavens by 50%, 60%, or even 70%. erated substantial wealth. At much harder to come by in
Scan the QR
products that helps them truly art, Dineout, SuprDaily, Swiggy tures, leveraging AI and analyt- are touting blue chips as a This creates an opportunity the same time, there were today’s market, which is far code to read
understand their actions, make Genie, Minis, Meat, and the ics to simplify market insights, safety net, your wealth cre- for asymmetric payoffs. If a banks that faced significant more competitive and efficient. an extended
informed decisions, and alcohol delivery service. “At ensure platform stability and ation report is titled, ‘Creat- ₹100 stock drops to ₹50 and challenges—some even col- Markets are not that easy. version of
improve their trading or invest- Swiggy, we were obsessed with fast execution, and offer per- ing Wealth Through eventually recovers to its origi- lapsed. For example, two or You have said earlier that this story.
ment strategies,” he added. ensuring every order was deliv- sonalized experience, Jain said. Bruised Blue Chips’. What nal price, it doubles in value. three banks lost a considerable foreign investors can pivot
LIVEMINT.COM CORPORATE TUESDAY, 10 DECEMBER 2024
NEW DELHI 05

Cox & Kings readies for revival Car sales slide 14%
in Nov as inventory
Wilson & Hughes, its new owner, will infuse ₹1,000 crore to rebuild the company as a digital-first travel agency
pile-up persists
Alisha Sachdev
[email protected]
Varuni Khosla This is also something that Wilson & travel to India, Cox & Kings was the NEW DELHI
[email protected] Hughes will explore. usual choice,” he said.

R
NEW DELHI “Our intent is to reduce the effort Subramanian said corporate and etail sales of passenger
going into planning holidays, which business travel has also changed con- vehicles fell 13.72% year-

W
ilson & Hughes includes not just long-haul but short- siderably in the past five years. on-year in November,
India Pvt. Ltd plans haul travel too,” Subramanian said. “As we are re-entering the business, reflecting subdued post-fes-
to invest as much as “The opportunity for leisure travel is corporate travel also needs more tive demand and lingering
₹1,000 crore in Cox quite extensive now. India has tech enablement. That’s where we inventory challenges, accord-
& Kings over three changed in terms of travel see a strong play as well. ing to data released by the
years to resurrect the liquidated and since the pandemic, and a BACK FROM MSMEs (micro, small and Federation of Automobile
repurchased travel company as a digi- lot of travellers are focused THE DEAD medium enterprises) and Dealers Associations (FADA)
tal-first entity catering to post-pan- heavily on it now. Luxury SMEs, which aren’t getting on Monday.
demic leisure and corporate travel group travel like Arctic COX & Kings may the cost advantage, also Passenger vehicle registra- The entry-level segment is
needs, a top executive said. expeditions and small- start functioning in
three to six months.
need solutions which can tions dropped to 3,21,943 units grappling with competition
“The funds will primarily be used group around-the-world It has already started be used. That’s also where in November, from 4,83,159 from used cars. MINT
for developing the technology part of trips is also a new category soft operations. we see some opportunity,” units in October, marking a
the business, investing in skilled we’re seeing emerge out of he said. steep 33% decline month-on- ber with over 85 days of inven-
human capital, marketing and part- Indian travellers. So that’s AS earlier, the About 70% of the busi- month as well. tory. Though there’s been
primary focus of the
nerships,” Ramalingam Subramanian, something we will also be revived Cox & Kings ness earlier came from Overall retail sales of vehi- some reduction, many dealers
president of Wilson and Hughes India setting our sights on.” will be on leisure and Indians living in the coun- cles across categories rose still carry 40 to 50 days of
and Cox & Kings, told Mint in an exclu- Ramalingam Subramanian, president, Wilson & Hughes India and Cox & Kings. Before Cox & Kings shut business travel. try and the rest from over- more than 11% to 32,08,719 stock. OEMs (original equip-
sive interaction. down, its mainstay came seas. In FY17, Cox & Kings units in November, from ment manufacturers) need to
The travel agency’s brand portfolio functioning in three to six months. It This is Wilson & Hughes’ first from planning leisure hol- had gross revenue of about 28,85,317 units a year ago, cut dispatches more aggres-
will be enhanced, its services has already started soft operations. investment in the travel sector, he said. idays, which accounted for 70% of its ₹7,200 crore. It went into bankruptcy lifted by a near 16% increase in sively,” he added.
expanded, and market presence Cox & Kings halted its services in In the past, the PE firm has invested business. court in 2019 after it defaulted on pay- two-wheeler sales, FADA said Manufacturers have been
strengthened with physical stores. 2019 due to financial difficulties. Wil- in sectors such as fast-moving con- Outbound travel to Europe from ments of loans close to ₹5,500 crore. in a statement. trimming dispatches to align
The Singapore-based private equity son & Hughes confirmed that the sumer goods, and cement. India was one of the hottest-selling According to data from the World A rush of festivals in Octo- supplies with demand, but the
firm acquired the 260-year-old travel acquisition is free from any of Cox & As earlier, the revived Cox & Kings itineraries. Inbound to India too, Travel and Tourism Council, tourism ber and Diwali, an auspicious adjustment has been insuffi-
company and about 200 sub-brands Kings’ past liabilities and is unrelated will focus on leisure and business especially from the US and the UK, was in India was expected to have occasion for high-value pur- cient. The inventory pain has
through the insolvency process in to its previous management. Subra- travel. In its previous avatar, the com- strong and another big part of the contributed ₹16.5 trillion to the econ- chases, falling on also spread to the
November 2024. manian did not disclose the amount pany had franchised 20-25% of its company’s business. omy in 2023, which is 3.5% lower 1 N o v e m b e r Overall retail sales SUV segment,
Cox & Kings is expected to begin spent on the acquisition. work to mom-and-pop travel stores. “When the NRIs would want to than in 2019. meant that con- of vehicles across which accounts
sumers advanced categories rose for one in every
their purchases, more than 11% two passenger
pulling the auto
y-o-y in Nov, lifted vehicles sold in
HC accepts Mahindra’s undertaking to not use ‘6E’ for EVs sales figures
down for the by a 16% rise in
India.

month. A strong two-wheeler sales segment, mean-

The entry-level

wedding season, while, is grap-

Krishna Yadav largest airline IndiGo. The lawsuit, filed on 4 argues that ‘6E’ is integral to its tion, and goodwill,” the airline 2023, to register “BE 6E” under which begins pling with com-
[email protected] Mahindra committed to December, asserts that identity and protected under said. “We will take all necessary Class 12, which encompasses soon after the festivals, also petition from a surprising
NEW DELHI rebranding the model from BE IndiGo’s “6E” trademark law. steps to protect our intellectual motor vehicles and related failed to bring much cheer to source—used cars. Vignesh-
6E to BE 6 but signalled its trademark is not Mahindra agreed IndiGo has sought property.” components. the car retailers. While rural war said robust four-year-old

T
he Delhi High Court on intent to contest IndiGo’s merely a call sign to rebrand the an injunction to IndiGo had registered the In a 7 December statement, demand offered support, it used vehicles in excellent con-
Monday recorded an claims in court. In turn, IndiGo but a cornerstone model from BE 6E prevent Mahindra trademark ‘6E Link’ in 2015 Mahindra announced the wasn’t enough to offset slug- dition are pulling customers
undertaking from informed the court it would not of its branding. to BE 6 but from using the under multiple classes, includ- rebranding while affirming its gish sales in urban markets. away from smaller, budget-
Mahindra Electric Automobile pursue an interim injunction Representing
signalled its intent designation. ing Class 9 for advertising, determination to challenge the “Inventory levels have friendly new cars. Rising
Ltd, agreeing not to use the against the automaker. passenger-fo- “Any unautho- Class 35 for promotional lawsuit. The company empha- come down by around 10 vehicle prices, which have
“6E” trademark for its upcom- After accepting the under- cused services to contest IndiGo’s rized use of the services, Class 39 for transport, sized that its “BE” mark, regis- days since October, but they surged by nearly 40% since
ing electric car model, the BE 6, taking, the court disposed of such as 6E Prime, claims in court ‘6E’ mark, and Class 16 for printed adver- tered under Class 12 for motor remain uncomfortably high 2020, have further dampened
during the pendency of a trade- IndiGo’s plea for interim relief, 6E Flex, and pre- whether standal- tising materials. vehicles, was part of its broader at 65 to 68 days,” C.S. Vignesh- demand for entry-level
mark infringement lawsuit issued summons to Mahindra, mium add-ons one or in any Mahindra had secured “Born Electric” platform. war, president, FADA, said in car models.
filed by InterGlobe Aviation and scheduled the matter for like lounge access and extra form, constitutes an infringe- approval from the trademark For an extended version of the the statement. For an extended version of
Ltd, the operator of India’s April 2025. baggage allowances, the airline ment of IndiGo’s rights, reputa- registrar on 25 November story, go to livemint.com “The industry started Octo- this story, go to livemint.com

Gentari to Crafting Bharat: Deep-tech edition—how

sell green GalaxEye is transforming space imaging
power to
I
ndia’s space sector can be grasped and articulated our
broadly, though not exclu- mission. Having the prime
AM Green sively, divided into two minister acknowledge and
major domains: commercial encourage our efforts at such

In 2023, Air India placed an order for 470 aircraft with Boeing and
Ammonia and research. Over the past
three years, India’s space-tech
an early stage in our journey
was incredibly motivating. It
Airbus worth $70 billion. start-ups have attracted sig- felt like a pat on the back, urg-
Rituraj Baruah nificant capital, with early- ing us to push boundaries and

Air India places [email protected]

NEW DELHI
stage investments leading the
charge. While India’s space-
techecosystempresentsfertile
achieve even greater mile-
stones. It’s a moment we’ll
always cherish.

order to buy 100 R

enewable energy major
ground for new ventures, not
Gentari, through its sub-
all are thriving. What drives you and the
sidiary Gentari Renewa-
bles India Castor One Pvt. Ltd, To highlight these innova- Suyash Singh, co-founder & CEO of GalaxEye, in conversation with Nithish Kumar, investment analyst te a m to t a c k l e s u c h

more Airbus jets will supply 650 MW of round-

the-clock green power to AM
Green Ammonia India Pvt. Ltd
tions, NewsReach launched a
special edition called Crafting
Bharat: Deep-tech, powered by
at Speciale Invest

The Hyperloop competition How did you identify the available and easy to under-
challenges?
It’s the love for problem-
solving and the belief in our
Daanish Anand additional 100 Airbus aircraft (AMG Ammonia) under a Innovation Venture Studio in wasn’t just about transporta- gap in satellite imaging? stand? The concept was capabilitytomakeadifference.
[email protected] will help to position Air India power purchase agreement. association with Speciale tion; it was about sparking The idea for GalaxEye clear—combine the strengths Hardware or software don’t
NEW DELHI on the path to greater growth In a joint statement on Mon- Invest, BYT Avenue, and Faad innovations and exciting stu- emerged during a corporate of SAR and multispectral matter—it’s about addressing
and contribute to our mission day, the companies announced Capital, that brings you inspir- dents who could push the stint when I was working on imaging into a single satellite real-world gaps with passion

T
ata Sons-owned Air India of building Air India into a that the deal would provide ing stories of visionaries shap- boundaries of science and assessing the damage caused to provide reliable, intuitive and innovation.
on Monday said it has world-class airline that con- carbon-free energy to AMG ingIndia’stechlandscape.This engineering. This by the California data regardless of weather or
placed a firm order for nects India to every corner of Ammonia’s upcoming green
episode focuses on GalaxEye, vision inspired me forest fires. I turned time. Excited by the challenge,
100 more aircraft with Airbus. the world.” ammonia facilities. To meet the
a pioneering company build- in 2017, when I to satellite imagery I reached out to my former The big dream
The firm order comprises a mix Experts believe that a resur- demand, Gentari plans to GalaxEye dreams of being
of 90 narrow body A320 family gent Air India could give its establish approximately 2,400 ing the world’s first constella- stumbled upon the as a solution, aim- Hyperloop teammates. The
the best satellite data
aircraft including A321 , and 10 rivals a tough competition. MWp (megawatt peak) of tion of multi-sensor imaging competitiononline. ingtousecomputer team quickly rallied behind company on the globe. The
widebody A350 planes. “Air India’s firm order of 100 renewable energy capacity, satellites capable of monitor- That night, I vision and AI to the idea, bringing their deep- organisation represents
With the latest order, Air more aircraft with Airbus has comprising solar and wind pro- ing our planet from space. c o u l d n’t s l e e p, quantify the tech expertise to the table. India’s rising prominence in
the global tech arena,
India’s total order book now signalled its aggressive intent jects, integrated with 350 Nithish Kumar, an invest- thinking that if I impact. However, I The goal was to simplify
stands at 570 aircraft, which to take the battle for the skies to MW/2,100 MWh of energy ment analyst at Speciale Invest, couldn’t build this GalaxEye quickly realised the satellite imagery, not just for
showcasing how passion and
innovation can transcend
has overshadowed IndiGo’s its rivals. The airline’s point to storage. The projects will be is in conversation with Suyash team or project limitations of exist- large organisations but for resource limitations. By
previous order of 500 aircraft. point vision for Vihaan.AI is executed across Andhra Pra- Singh, co-founder & CEO of from IIT Madras, it would be ing imagery—most of it was e v e r y d a y u s e r s . Wi t h addressing critical gaps in
Industry experts said the new clear and hence the long-haul desh and Karnataka. satellite imaging, the
GalaxEye, who shares his jour- difficult to do it anywhere. obscured by clouds and GalaxEye, we aim to make company is on track to
deliveries are expected to com- market is key for Air India’s “The solar project will be neyfrombeinganengineering Our first attempt in 2018 smoke, making it unusable. satellite imagery accessible, revolutionise industries
mence after 2027. international constructed at a single location
student to co-founding a start- wasoverambitious,combining At that point, I came across understandable and available across the globe and
The company did The airline is in dominance. The and the wind projects will be redefine what’s possible.
not reveal the the third phase of enhanced A350 spread across multiple loca- up that recently secured $10 complex technologies like Synthetic Aperture Radar all year round.
financial details of its transformation order may be just tions connected through the million in a Series A funding magnetic levitation and eddy (SAR) technology, which
the order. what AI needed,” ISTS network,” said Navjit Gill, round. current braking. We failed to could penetrate clouds and How did it feel to be recog-
journey which qualify but learned valuable smoke and even capture nis e d by the prime Stay tuned to the Crafting
In 2023, Air Sanjay Lazar, country head for India, Gentari.
commenced in Could you take us back to lessons. I funded a trip to the nighttime images. While SAR minister? Bharat: Deep-tech edition
India placed an chief executive of “This will be a one-of-
April 2024 and will as we continue to bring you
order for 470 air- Avialaz Consult- its-kind project, integrating your Hyperloop journey UStounderstandthecompeti- was a breakthrough in avail- Speaking with the prime stories of India’s most
craft with Boeing end in March 2027 ants, said. with energy storage to supply anditsimpactonGalaxEye? tion and realised we needed ability, it had a significant minister on Mann Ki Baat was innovative founders. These
and Airbus worth Air India group firm and dispatchable green Meeting Elon Musk at the to simplify our approach. drawback: it was incredibly an incredible honour. It’s not are the people turning bold
$70 billion, which is in the middle of energy to AMG Ammonia’s SpaceXHyperloopfinals in July In 2019, we refined our unintuitive and difficult to every day that you get to share ideas into reality and
consisted of a good mix of both its five-year transformation facilities. With our aligned redefining what’s possible.
2019 was surreal—a dream design and became the only interpret. On the other hand, your vision with the highest
narrow and wide body aircraft. journey called Vihaan.AI. As vision and extensive expertise, moment for me and my team. Asian team to qualify for the traditional multispectral office in the country, and the
Air India’s order book with Air- per the plan, unveiled after we aim to drive rapid progress To watch the
It marked the culmination of finals. Showcasing our pod at imagery was easier to under- fact that he spent 20 minutes
bus now stands at 350 aircraft, Tata Sons acquired it in Janu- in expanding India’s renewable episodes of
our journey with Avishkar SpaceX alongside the world’s stand but often unavailable in engaging with us left us feeling
up from 250. Its order is ary 2022, the group is in its energy capacity and fostering Crafting
expected to boost not only its third phase or ‘the climb sustainable growth in the green Hyperloop, a deep-tech project best teams was transforma- adverse conditions. deeply humbled and Bharat, scan
international long-haul plans phase’, which commenced in electron-to-molecule chain,” from IIT Madras focused on tive—it caught the attention This sparked a key insight: grateful. the QR code
but also its domestic coverage. April 2024 and will end in Gill added. building pods for high-speed of leading technocrats and could we create satellite imag- What stood out the most
In a statement, N. Chan- March 2027. The group is con- The deal is tailored to meet travel in vacuum tubes. sparked conversations.. ery that is both always was how effortlessly he CreatedbyMintBrandStudio
drasekaran, chairman, Tata fident about the passenger AMG Ammonia’s green ammo-
Sons and Air India, said, “We demand next year, and believes nia plant needs, ensuring unin-
see a clear case for Air India to that 2025 will be a year in terrupted energy supply
expand its future fleet beyond which the airline will put all throughout the year.
the firm orders of the 470 air- pieces together that it worked For an extended version of
craft placed last year. These on in the last two years. this story, go to livemint.com
06 TUESDAY, 10 DECEMBER 2024
NEW DELHI CORPORATE LIVEMINT.COM

NEW GOVERNOR-SPEAK
We are here not only for revenue, Revenue comes in only when While the Centre will endeavour On GST, our effort has been to The growing emphasis on green
but also for the economy...if in there is some income, so we have to rationalise GST rates, we are simplify the law. Similarly, the energy, energy transition and
the process of garnering revenue, to be very cautious so that we do mindful that states are equal review of GST rates are aimed at electric vehicles because of
we are hurting industry and the not in the process, as they say, kill partners, if not more. Our effort making life simpler for the climate change... there is going to
Sanjay
Malhotra
economy, that is not the intent. the golden goose. will be to bring about a consensus. taxpayers and the common man. be good capex in years to come.
December 2024 December 2024 July 2024 July 2024 July 2024

Das wraps up RBI tenure

Much of Das’s tenure was marked by actions that earned him acclaim, but challenges arose in his second term
Gopika Gopakumar had chosen to ignore the warnings of
[email protected] the two former MPC members who Leadership legacy
MUMBAI had repeatedly said that extended Under Das's leadership, the MPC cut policy rates to a historic low of 4% and infused liquidity into the system via
period of pause could hurt growth. direct and indirect measures to help the economy hit by lockdowns.

S
haktikanta Das will step Das earned the government’s Repo rate during Das' tenure Consumer price index inflation (%)
down as the 25th governor of appreciation for his deft handling of 7 8
Reserve Bank of India (RBI) the banking system. He also “smelled 6.5 A report quoting economists said they expected a 25 basis point
6.5 7
6.21
on Tuesday, at a time when the crisis” in the unsecured loan port- 6 6
cut in the repo rate at Malhotra’s first MPC meeting in Feb. REUTERS
the war on inflation is ongo- folio early. Many applaud him for

Malhotra to lead
5.5 5
ing and economic growth has taken a measures to improve compliance and
sudden slow turn. governance. 5 4

Union ministers Nirmala Sithara- While much of Das’s tenure was 4.5 3
man (finance) and Piyush Goyal (com-
merce and industry) had called for rate
cuts after GDP growth slowed to 5.4%
marked by actions that earned him
acclaim, challenges arose in his second
term. For instance, RBI had to write to
4
3.5
3 0
2
1 next leg of RBI’s
in the July-September quarter. But the Centre in 2022 explaining why the 14 Dec 2018 29 Nov 2024 Dec 2018 Oct 2024
Das stuck to the RBI’s inflation target-
ing mandate and held the repo rate
steady on 6 December following his
inflation target was missed. Before
that, he had sought an exemption from
this rule. SHAKTIKANTA
Transition time
Source: RBI
war on inflation
last meeting with the central bank’s Then, RBI’s draft regulations on DAS's TENURE: four-year terms. In October,
12 Dec 2018 to
2018 2019 FROM PAGE 1
monetary policy committee (MPC). infrastructure project financing and 10 Dec 2024 Dec: SHAKTIKANTA DAS Feb-Oct: RBI's MONETARY the government appointed
Das, one of RBI’s longest-serving its handling of non-bank lenders takes charge as RBI governor, Policy Committee (MPC) cuts repo ten to 4% only by the Septem- Ram Singh, director, Delhi
succeeding Urjit Patel. rate by a cumulative of 135 basis
governors, took charge in 2019 follow- didn’t go down well. points (bps) over five consecutive
ber quarter of FY26. Mean- School of Economics, Univer-
ing his predecessor Urijit Patel’s sud- “Tight monetary policy, arbitrary meetings after Das take over. while, the rupee trades near sity of Delhi; Saugata Bhatta-
den departure. regulations may have affected credit 2020 all-time lows, amid strong charya, former economist,
Mar-May: MPC CUTS
One of his first actions was to set up delivery,” said Abheek Barua, former rates by 115 bps over two
2021 demand for the dollar and Axis Bank; and Nagesh Kumar,
Oct: RBI INTRODUCES
a committee to review RBI’s economic economist, HDFC Bank. “While Das consecutive meetings in
scale-based regulatory framework for
portfolio outflows. director and chief executive,
capital framework. Following the rec- managed to get core inflation down, response to covid-19 At his final policy statement Institute for Studies in Indus-
non-banking financial companies
pandemic and resultant
ommendations of the committee, the his fretting over food inflation is seen lockdowns.
(NBFCs), segregating them into four on Friday, Das said RBI’s anti- trial Development, New Delhi
RBI has been transferring its surplus to as a misstep. He could have pushed for broad categories and bringing norms inflationary policy stance has to the committee. The internal
for large NBFCs at par with banks in
the Centre each year. an easier policy regime given the cred- terms of capital requirements,
been a crucial factor in bring- members include RBI execu-
Das, who joined from the depart- ibility he had built for himself.” 2022 ing about a significant disinfla- tive director Rajiv Ranjan and
prudent regulations and governance
ment of economic affairs, played a cru- Rakesh Mohan, former deputy gov- Apr: RBI INTRODUCES standing deposit tion. “Going forward, as food Patra, apart from the governor.
standards.
facility (SDF), a monetary policy tool that
cial role in handling the economic ernor of RBI, said that Das restored a allows banks to temporarily deposit excess Dec: DAS IS reappointed as RBI price shocks wane, headline Madhavi Arora, chief econo-
impact from the covid-19 pandemic. harmonious relationship between RBI funds with RBI in exchange for interest, as a governor for three years. inflation is likely to ease and mist at Emkay Global Financial
Under his leadership, the MPC cut and the government after more than a part of its liquidity management during the realign with the target as per Services said the new governor
pandemic. 2023
policy rates to a historic low of 4% and decade, and also kept the credibility of Nov: IN RESPONSE to our projections,” he said, add- and MPC members will also
infused liquidity into the system. RBI intact by not coming under pres- May 2022-Feb 2023: MPC HIKES rates ing that at present, it is neces- have different policy challenges
unprecedented growth in unsecured
by a total of 250 bps over six straight
The MPC gears to focus on inflation sure to cut rates. retail loans and concerns of a sary to wait for and monitor and macro and global landscape
meetings.
systemic risk, RBI increased risk
after the Ukraine war erupted in 2022. “That said, RBI’s forex reserve man- Sep: RBI ISSUES digital lending guidelines weights on unsecured consumer
incoming data for confirma- in 2025, as against what Das and
For at least a year thereafter, RBI hiked agement could have been more flexi- for the fintech ecosystem, a cause of major loans, including credit cards, by 25% tion of the decline in inflation. the erstwhile MPC faced at the
rates by 250 basis points, which ble and taken signals from the market. upheaval in the sector. for banks and NBFCs. A Reuters report quoting start of 2024. The policy trade-
brought inflation down from 7.8% to RBI needs to keep an eye on real economists at Capital Econom- offs are getting acute, said
4.25%. However, food and fuel price exchange rate and do it in such a way 2024 ics said they expected a 25 basis Arora, pointing to the state of
Apr: RBI BARS Kotak Mahindra Bank from onboarding new customers on its online and
shocks kept inflation above MPC’s that it remains competitive. But it has mobile banking channels, and issuing fresh credit cards due to deficiencies in its IT systems
point cut in India’s repo rate at India’s stagflation; the small
medium term target of 4%, forcing it to been far too stable at the nominal and controls. Malhotra’s first MPC meeting window for conventional rate
pause for nearly 11 policies. level,” Mohan said. Sep: RBI’S FOREIGN exchange reserves touch an all-time high of $704.89 billion. in February, compared to April cuts as global dynamics turn
The extended status quo hit home Mint Road will surely miss his inspi- Dec:THE INDIAN rupee falls to its all-time closing low of 84.75 against the US dollar. under Das’s lead- more fluid;
when the second quarter GDP growth rational quotes on Gandhi, animal anal- ership. Malhotra’s mounting forex
Source: Mint research
came in at a seven-quarter low. Das ogies and his penchant for cricket. The external appointment pressures and the
environment comes just rising cost of forex
remains chal- months after the intervention.
lenging. US Pres- Under Mal-
government
FIVE OF MPC’S SIX MEMBERS MAY SOON BE NEW ident-elect
Donald Trump
hotra’s watch as
appointed 3 new revenue secretary
has promised members to MPC from year 2022,
heavy tariffs on tax authorities
ades ago—has served as an important bridge between the RBI’s generally skilled at making allies and forging consensus, which gives Chinese goods rolled out plans to
research department and successive governors, the board and in them an edge in managing the fault lines between the central banks and a loose fiscal policy. In a simplify income tax, reduce liti-
EXPERT recent years the finance ministry.
The nearly brand-new MPC will be up against challenging times
and governments, such as over lowering of interest rates, transfer-
ring surplus profits as dividends and regulation of banks. Lately,
recent interview with the gation, rationalize customs tar-
Financial Times, Das said iffs, eliminate fake GST registra-
VIEW ahead: India’s post-covid recovery may have entered a phase of fra- managing these tensions has become the more significant of the “protectionism and tariffs”, as tions, ensure tax certainty and
gility already, going by the government’s latest estimates of GDP governor’s job responsibilities. The government has, thus, come to well as “geo-economic frag- enhance voluntary tax compli-
PUJA MEHRA that showed a sharp slowdown in growth and Trump’s second demonstrate a preference for picking bureaucrats over economists mentation”, supply chain bot- ance. In his current role, he has
presidency promises to be a period of disruption and uncertainty. with domain expertise who don’t usually tlenecks and surging com- frequently advocated a finely
Respond to this column at
[email protected]
The new governor must hit the ground running without the The nearly have prior exposure to the ministry or modity prices due to conflict balanced approach to policy
advantage of an overlap with the outgoing governor. As governor- brand-new experience of working with it. are the “biggest potential chal- making and administration.
designate, Raghuram Rajan, worked in the RBI along with the out- The Economic Survey in July sug- lenges” for India. The top revenue officer has,
MPC will be

T
he nearly brand-new monetary policy committee (MPC) will going governor, D. Subbarao, before succeeding him subse- gested that government could improve Malhotra’s appointment on multiple occasions, told the
be up against challenging times ahead as India’s post-covid quently. Rajan even got to attend meetings of the RBI’s board in up against farmers’ incomes by changing the RBI’s comes just months after the tax administration to focus on
recovery may have entered a phase of fragility already, and this overlap phase as governor-designate. challenging inflation target. More specifically, by Centre named three new real issues of tax evasion,
Donald Trump’s second presidency promises to be a period of dis- Arun Jaitley used to say two things about the RBI. First, the gov- times ahead asking the RBI to control inflation minus members to MPC. With new rather than issues prone to
ruption and uncertainty. ernment sees the central bank as an extension of the ministry of food prices. The outgoing governor, external members, a new gov- interpretation. Last week, he
How should the appointment of the new governor of Reserve finance. Two, gravitas is the quality most critical to be the RBI’s who, as the economic affairs secretary ernor, and a new deputy gov- cautioned field officials to
Bank of India (RBI) at this critical point for the economy be read? governor. But the third unstated qualification seems to be that gov- had steered the amendments in the RBI Act for introducing the ernor who is yet to be named — place the economy’s interest
Continuity was not seen as an advantage in a phase of fragility. ernors must be from the IAS. Globally, central bank governors inflation targeting monetary framework, said he did not agree with present deputy governor before that of revenue, com-
Unless deputy governor Michael Patra, whose term ends next aren’t necessarily economists. The US Federal Reserve’s Jerome the survey’s recommendation. It remains to be seen if the finance Michael Patra is expected to paring high-pitched tax
month, is given an extension, the six-member monetary policy Powell is not an economist. He worked in the financial industry and bill in February’s budget will amend the RBI Act again to change the retire in January — the com- assessments to killing the
committee is all set to have five new members. Its three external a think tank before joining the Fed, and even had a stint in the US RBI’s inflation target, going by the survey’s recommendation. mittee’s February meeting will goose that lays golden eggs.
members were appointed just weeks ago in October. Of the three treasury in the George Bush administration. The author is consulting editor, Mint, and the author of The Lost be keenly watched. [email protected]
RBI members, the governor is set to be replaced. In his long years, It appears that in India, the government’s choice has become Decade (2008-18): How India’s Growth Story Devolved into The six-member MPC has Rhik Kundu and Rituraj
Patra—he was executive assistant to governor Bimal Jalan two dec- restricted—perhaps permanently—to bureaucrats. Bureaucrats are Growth Without a Story. three external candidates with Baruah contributed to the story.

Blackstone ends bumper year with IGI public offer India to speed up trade with Brics
FROM PAGE 1 million). In October, Mint IGI when it acquired stake FROM PAGE 1 work is yet to start. There are
reported that Blackstone is from Chinese firm Fosun many factors to be taken into
upper end of the issue price) booking a partial exit from visa International as well as IGI’s pore, South Korea, US and account,” said the person. A deal
from selling 23.5% stake outsourcing and technology promoters for $570 million in Canada have AEO pro- with China could help Indian
through a combination of offer services platform VFS Global May 2023. grammes. India’s latest effort in exporters as India has a huge
for sale and sale of shares in for $950 million. “What we bought was a this respect is essentially an trade deficit with the world’s
IGI’s overseas entities. To be sure, the company is loosely held confederation of integration of the AEO scheme second-largest economy.
IGI’s IPO valuation has been sitting on vast unrealized gains diamond certification opera- with Brics nations. India’s expanding network
set at around ₹18,612 crore as it still holds tions in 10 coun- Enhancing cooperation in of MRAs with countries like
($2.19 billion) on the upper end stake in most of Blackstone first tries,” said Prat- trade and customs is the next South Korea, Hong Kong, US
of the price band, which trans- these companies. invested in IGI eek Roongta, logical step, explained Biswajit and Russia, along with the
lates to close to 4x in unreal- For instance, when it acquired m a n a g i n g Dhar, distinguished professor India’s trade with Brics nations negotiations with Brics nations,
ized gains in less than two Blackstone will stake from Fosun director of Black- at the Council for Social Devel- rose 8.3% yearly in FY24. REUTERS will reduce compliance bur-
years since investing. continue to hold stone Advisors opment. The freeze in bilateral den, foster trust and solidify
International &
Other partial exits this year 76.5% stake in IGI India Pvt. Ltd. relations, which had spilled the first half of this fiscal year, India’s position as a trusted and
include PGP Glass, which after selling 23.5% IGI’s promoters “What we are over to economic matters, has hurt by slow growth in devel- interconnected trade hub
fetched Blackstone around Blackstone will continue to hold 76.5% stake in IGI after selling in the IPO. In for in May 2023 selling is a con- now been lifted at the political oped countries, although phar- within the Brics bloc and inter-
$150 million through a divi- 23.5% in the IPO. BLOOMBERG Aadhar Housing solidated world level, and overall, there could maceutical, electronics and nationally, said Agarwal.
dend recapitalisation—where Finance, it holds leader in dia- be a lot of cooperation between engineering goods bucked the For an extended version of the
a company takes on debt to pay stake in wealth platform ASK of around ₹2,000 crore ($235 over 75%. In Nexus Select mond certification, one IGI.” India and China, said Dhar. “It trend. India’s trade with Brics story, go to livemint.com.
its shareholders a special one- Holdings to its wealth clients, million) in Aadhar Housing Trust, it holds around 21% Roongta added, “From hir- would also pave the way for the nations expanded 8.3% annu-
time dividend. It had earlier taking out around $120 mil- Finance at the time of the stake; in VFS it holds over 50%. ing key CXOs across functions removal of uncertainties and a ally to $215.3 billion in FY24.
Scan the QR
considered a secondary stake lion. Earlier in June, Black- company’s IPO in May. It holds a little over 40% in to building a single strategy, new beginning in economic A second person said the road code to
sale of shares, but abandoned stone sold 15% stake in IT ser- In August, it sold a portion Mphasis and owns at least 90% Blackstone has been involved ties between the two nations in is clear for negotiating a similar follow this
the process after valuations vices company Mphasis for of its shares in real estate in Ask Holdings, according to in taking the company to the 2025,” said Dhar. deal with China, a major trade author’s
were unsatisfactory. ₹6,700 crore ($790 million), investment trust Nexus Select data from the exchanges. next level of growth unlock- India’s petroleum, gems and partner and India’s largest work.
The PE firm also sold some after offloading a partial stake Trust for ₹4,335 crore ($510 Blackstone first invested in ing.” jewellery exports fell steeply in source of imports. “However,
LIVEMINT.COM CORPORATE TUESDAY, 10 DECEMBER 2024
NEW DELHI 07

Pan-India developers NSEIT rebrands to focus on global mkt

Priyamvada C. lookout for the right entities to

‘redevelop’ in Mumbai [email protected]

BENGALURU
kind of bolster and comple-
ment what’s already going well
for us. So we will infuse more

I
nvestcorp-backed NSEIT, capital in these specific areas
which provides digital and over a period of time,” Sreeni-
cybersecurity solutions, will vasan said, adding that the
rebrand to NuSummit and will company expects to scale to
pivot to focus extensively on $400 million in revenue over
Developers are drawn to the massive opportunity also in the SRA space global markets, according to the next 3-4 years with part of
the company’s top executive. this coming through acquisi-
“The journey forward lies in tions.
Khushi Malhotra expanding our presence in NuSummit has also invested
[email protected] global markets where we are in generative artificial intelli-
MUMBAI aggressively investing more gence and aims to use technol-
into our offerings,” Ananthara- Investcorp-backed digital and cybersecurity solutions provider ogy as a business differentiator

D
evelopers from across India man Sreenivasan, managing NSEIT, will rebrand itself as NuSummit. to service its vast clientele that
are seizing opportunities to director & group CEO, NuSum- spans capital markets, insur-
redevelop Mumbai’s old, mit, told Mint. “We are looking “We will be closely working enues from North America ance, banking and other indus-
dilapidated buildings, hous- to pivot in a very big way into with the NuSummit team as while India continues to be its tries.
ing societies and slums to becoming a globally relevant they explore newer geograph- dominant (about 60%) market. The company will leverage
expand their footprint in the land-starved niche domain centric entity ies offering innovative and tai- Investcorp may invest addi- Investcorp’s global connec-
financial capital. that has cutting edge technol- lored solutions to modernize tional capital as the company tions and NSEIT’s strong pres-
In May 2022, Bengaluru-based Prestige ogy solutions across cybersecu- their IT landscapes, with a penetrates deeper into North ence in India, North America
Group launched Daffodils, an uber luxury rity, digital and cloud.” focus on tangible business out- America and other interna- and the Middle East to further
redevelopment project in Pali Hill, Bandra The development comes comes,” said Varun Laul, part- tional markets. deepen its offerings.
West with a carpet area of 1.2 lakh sq. ft. after Bahrain-based Investcorp ner at Investcorp. “I think North America in Investcorp manages about
The project has sold close to 70% residen- acquired the National Stock Over the last eight months, many ways is going to acceler- $50 billion in assets globally
ces since launch. Puravankara Ltd also Exchange’s digital services Investcorp has invested about ate growth for us as we are but has less than 2% of its total
secured redevelopment rights for two business for ₹1,000 crore in $25–30 million to fund making significant investments assets under management in
housing societies in Mumbai last year, April. The transaction was its NuSummit's expansion plans. there. We also have a footprint India. However, it aims to dou-
with a gross development value (GDV) of largest private equity deal in The company has used the pro- in Western Europe and are ble down on the market and
₹1,500 crore. In September, the group India, signalling its ambition to ceeds for building its capabili- actively looking at the APAC take it to $5 billion AUM over
acquired rights for another project— double down on the country’s ties in the North American region,” Sreenivasan said. “As the next five years.
Miami Apartments at Breach Candy, Mumbai’s redevelopment scene includes development agreements with housing information technology and region, which it sees to become we will be pivoting more The investment firm has
entering the uber-luxury south-Mumbai societies, slum rehabilitation model as well as redeveloping cessed buildings. MINT cybersecurity space. However, one of its biggest revenue con- towards global markets, we also backed several IT services firms
market. the deal excludes the examina- tributors in the future. expect the revenue composi- globally, including the Nether-
In 2023, Delhi-based DLF Ltd forayed includes development agreements with potentially higher profit margins and for tions business that is also Currently, the company tion to change.” lands-based Netrom Software
into Mumbai to jointly develop a slum housing societies, slum rehabilitation expansion opportunities amid a paucity of housed inside NSEIT. receives nearly a third of its rev- “We are constantly on the and the UK’s Ubisense.
rehabilitation project with a subsidiary of model as well as redeveloping cessed clean developable land in Mumbai. The
Trident Buildtech Pvt. Ltd in Mumbai’s buildings, which have been constructed developers can get access to prime land
Andheri West. A year earlier, Ahmeda- before 1960 in Maharashtra and the gov- parcels in Mumbai, where there is less
bad-based Adani Properties Pvt. Ltd had ernment collects cess from the residents opportunity for acquiring land.
won the mandate to execute the redevel- of these buildings. Over 25,000 buildings
opment of Dharavi, one of the
“Whether it is SRA or non-SRA build-
in Mumbai’s metropolitan region ings, such projects have the potential for
Metropolis acquires Core for ₹247 crore
world’s largest slums that (MMR) alone have outlived higher FSI and higher returns, which is
sprawls across 600 acres. their useful life and are eligi- attracting all these developers to the seg- Jessica Jani while deepening its presence in polis Healthcare, told Mint. revenue of ₹110 crore in FY24.
“With limited opportuni-
ties of greenfield land par- 25,000
No. of Mumbai
ble for redevelopment, ment,” said Pankaj Kapoor, founder and
Dhaval Ajmera, secretary of managing director, at Liases Foras.
[email protected]
MUMBAI
north and east India. “Cancer is
now globally one of the fastest
The acquisition will take
place through a combination of
In the first half of this year, the
company’s revenue was about
cels in Mumbai, a massive Credai-MCHI, had said at a “Around 60% of today’s supply of growing diseases and will con- cash and stock, with 55% of the ₹59-60 crore. Going by run-

I
opportunity exists in the buildings that have press conference. launches comes from redevelopment— ndia’s second largest pathol- tinue to be for the next 5-10 transaction in cash and 45% via rate, it would be at about ₹120-
redevelopment and SRA outlived useful life “Mumbai is a redevelop- whether society or slum redevelopment.” ogy lab chain Metropolis years, and Indians need access a preferential issue and allot- 122 crore for the year. “When
space,” said Tariq Ahmed, ment market,” said Abhishek While the market poses an attractive Healthcare Ltd on Monday to the best cancer care diagnos- ment of equity shares of the we were looking at valuing the
CEO, West India at Prestige Kapoor, group chief executive opportunity, it is becoming highly com- announced that it had acquired tics as well as early diagnos- company (by way of share business, we looked at it from
Group. "So, I think that's where there and executive director at Puravank- petitive. The boom in real estate has a 100% stake in Delhi-NCR tics…oncology is an obvious swap). The equity issuance is two angles, it comes to about
is a lot of focus for developers considering ara. “We are actively pursuing opportuni- encouraged a lot of players to take up headquartered Core Diagnos- space for us to want to take subject to shareholder two times the revenue on the
the significant ongoing redevelopments ties on the redevelopment side in Mum- redevelopment projects. Developers such tics, a prominent player in leadership in. And with this approval, and the acquisition back of Core’s FY 2024-25 rev-
of regular societies or Mhada societies and bai. We’ve already signed three redevel- as Hiranandani group, Keystone Realtors India’s specialised diagnostics acquisition, it catapults us to could be completed within 60 enue, and about 1.6 times reve-
with multiple opportunities still out opment projects, and we are working on a Ltd, Raymond Realty, etc. have a pipeline sector, for ₹246.8 crore. the leading cancer testing days. No government or regu- nue when you look at FY
there.” Mhada is the Maharashtra Housing few more. So, the pipeline is quite robust." of such redevelopment projects. This acquisition will chain of labs in the country,” latory approval is needed, the 2025-26,” Shah said.
and Area Development Authority. Redevelopment is an attractive space to For an extended version of this story, go to enhance Metropolis’ capabili- Ameera Shah, promoter and company said in a BSE filing. For an extended version of
Mumbai’s redevelopment scene be in for developers due to FSI benefits, livemint.com. ties in advanced cancer testing, executive chairperson, Metro- Core Diagnostics registered this story, go to livemint.com.

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Biden is ceding presidential influence to

Trump, and some Democrats are furious
The president-elect doesn’t take office until Jan. 20, but he’s negotiating with foreign leaders and many are taking cues from his comments
Aaron Zitner & Ken Thomas lame ducks we’ve seen with a Dem- Gov poll in late November found given how close the final result is,”
WASHINGTON/LOS ANGELES ocratic administration. A massive that 59% of voters approve of his Ferguson said.
missed opportunity,” said Usamah handling of the transition so far. But The narrow margin of victory in

T
he American tradition is Andrabi , spokesman for the pro- other surveys show that many vot- some ways masks the breadth of
that the nation has only gressive group Justice Democrats, ers don’t have firm opinions of Trump’s win. He won every swing
one president at a time. who says the consequence is that many of the nominees, suggesting state and made inroads with Black,
Right now, that presi- Trump has grabbed the public’s there is room for Democrats to Latino and young voters, groups
dent looks like Donald attention uncontested. shape impressions. that have traditionally provided
Trump —because President Biden After Trump’s promise to raise How the party moves forward solid Democratic support. Some
is ceding the spotlight. tariffs put U.S. neighbors on edge, during a second Trump administra- Democrats still appear shell-
While Biden remained in Wash- he dined with Canadian Prime Min- tion was a major focus for Demo- shocked by the election results, in
ington, it was the president-elect ister Justin Trudeau at Mar-a-Lago cratic governors who gathered this part because they are unsure what
who met on Saturday in Paris with and started diplomacy with Mex- weekend in Los Angeles to discuss message they need to focus on
French President Emmanuel ico’s president, Claudia Sheinbaum the aftermath of the 2024 election. headed into the 2026 midterms
Macron and Ukrainian leader Volo- . Trump has named his intended The governors said they need to and beyond.
dymyr Zelensky , who is lobbying cabinet and senior staff with unu- strike a balance—adopting pragma- Some Democrats and their allies
Trump to continue wartime aid. sual speed, dominating the news tism in countering Trump policies are urging a more muscular use of
At the time they met, Damascus environment and forcing lawmak- that conflict with the party’s princi- Biden’s current powers. They are
was falling to rebels in Syria. While ers to react to several nominations ples while finding ways to help their urging him to extend pardons to a
Trump briefly spoke to reporters at once, including to some who states. range of potential targets of
about Ukraine and posted online have prompted even Republicans “If your values are being attacked, Trump’s new Justice Department,
about U.S. interests in Syria—say- to flinch. or you’ve got communities or peo- as well as others who they say
ing “this is not our fight”—Biden Biden’s muted presence is a con- ple who are being attacked that deserve clemency. Sen. Catherine
didn’t make a public appearance on trast to how President Barack don’t deserve it, you’ve got to fight Cortez-Masto (D., Nev.) wants Biden
Saturday and waited until Sunday Obama handled Trump’s first elec- like hell,” said New Jersey Gov. Phil to provide additional protections to
to comment on Syria. The fragility tion victory in 2016. When Trump, Murphy . “And then over here, undocumented immigrants vulner-
of these two regions in the world as president-elect, called on the you’ve got to have a able to deportation.
has many leaders and businesses on administration to veto a United relationship with the Biden’s muted In the Senate, which
edge. Nations Security Council resolu- guy.” presence is a will vote on the Trump
Trump is already dictating trade tion criticizing “Every diner I go to, contrast to how nominations, most
and immigra- the expansion of Some Democrats and their allies are urging a more muscular use of Joe Biden’s current powers. AFP it’s the same message: President Barack Democrats are stop-
tion policy and Israeli settle- ‘How are you going to ping short of taking
Obama handled direct shots at the
has moved rap- ments, Obama conference during his Africa trip, going to the voters and explaining the implementation of an unprece- make my life more
idly to remake brushed off the even though U.S. presidents often things to them, which President dented agenda that will benefit affordable?’” said Rep. Trump’s first nominees and instead
the U.S. government. He doesn’t pressure and allowed the measure do hold such briefings during visits Biden has consistently avoided hardworking Americans for gener- Josh Gottheimer (D., victory in 2016 are warning that
take office for six weeks, but many to pass, while his deputy national- abroad.) doing.” ations,” he said. N.J.), who recently Trump and his team
people who had been his fiercest security adviser admonished, When Trump visited the White Harris, the vice president, vowed In addition to swiftly assembling launched a campaign risk installing flawed
critics in Washington—and the “There’s one president at a time.” House after defeating Vice Presi- in her postelection concession a cabinet full of people who are for New Jersey governor. candidates because of a faulty vet-
White House—have mostly stood Obama also held a formal White dent Kamala Harris , Biden greeted speech to continue “the fight that largely loyal to his vision for leading To other Democrats, it’s a natural ting process. Democrats control the
aside. House press conference after the him personally with a polite “wel- fueled this campaign,” but she has the country, the president-elect consequence of defeat that Biden Senate now, but Republicans will
This has left a number of Demo- election, which Biden so far hasn’t come back.” The cordiality was essentially been silent since then, appears very focused on following and other party leaders would take take control of the chamber in early
crats perturbed that Biden and done. intended to show the Democrats’ vacationing in Hawaii and return- through on many of his campaign a more muted posture now and January when Trump’s picks will be
party leaders, after spending years To some Democrats, Biden is for- commitment to continuity of gov- ing to more mundane duties in promises, including ones that could pause in order to develop a consid- up for confirmation votes.
casting Trump as a threat to feiting the transition period. They ernment and democratic norms. Washington. Democrats on Capitol lead to federal investigations of ered response to Trump. But even Senate Majority Leader Chuck
democracy, have left a communica- say the vacuum is emblematic of Some Democrats hoped he would Hill have done little to shape voters’ Democrats next year. Trump said in some who urge a deliberative pause Schumer (D., N.Y.) last week
tions and policy vacuum during the one of the biggest problems the use the moment to make a public views of the incoming administra- an NBC interview that aired Sunday say the party could be doing more refrained from directly criticizing
transition period. These critics party must face—its inability to point of urging Trump to respect tion. The campaign of Rep. Adam that the members of the House both to set policy before Biden Trump’s picks, instead emphasiz-
believe top Democrats have drive a consistent, clear message to the independence of the Justice Schiff of California, newly elected committee that investigated the leaves office and to shape public ing the importance of putting nom-
bypassed chances to make the case voters who increasingly get news Department and other institutions. to the Senate, this week circulated Jan. 6, 2021, riot at the Capitol opinion of the incoming adminis- inees through background checks
against nominations by the presi- from social media—as it lays plans “Most voters don’t know Kash a newspaper story headlined: “should go to jail,” though he also tration. and hearings. But some Democrats
dent-elect that they see as instru- for revival after its defeat in the Patel or even who Matt Gaetz or “Sen.-elect Adam Schiff doesn’t said he wouldn’t direct his cabinet Making a case against Trump are getting worried about Trump’s
ments of his promised “retribu- presidential race and loss of its Sen- Tulsi Gabbard are,” said Waleed want to talk about Trump. He wants nominees to make arrests. “won’t be done by outraged tweets selections and are coming close to
tion.” ate majority. Shahid , a progressive Democratic to talk about the economy.” When asked if Trump would about the latest things he says but saying that they needed to be voted
“We should be less hobbled and Biden pardoned his son, strategist, referring to Trump’s A White House spokesman, prosecute Biden and his family, the by showing the consequences of his down.
more spurred. We should be vocal, Hunter—then left for a trip to Africa nominees to lead the Federal Andrew Bates , noted that the presi- president-elect said: “I’m not look- agenda on the middle class,” said “It’s not usually something we’re
pushing back against these nomi- rather than pressing his party’s case Bureau of Investigation and the dent had traveled recently to Africa ing to go back into the past. I’m Jesse Ferguson , a Democratic strat- talking about at this point in the
nees who are nothing but a disaster in person that Trump is presenting U.S. spy agencies and the failed and South America to strengthen looking to make our country suc- egist. Still, he said, Democrats could process, but given the people that
in the making,” said Washington’s a broad threat to the justice system effort to install Gaetz as attorney international relationships and that cessful. Retribution will be through tell voters that Trump’s 1.5-point Trump has put forward, it’s very
Democratic Gov. Jay Inslee . that imperils not just the presi- general. “But many more Ameri- the Senate continues to confirm success.” win in the popular vote was rela- much on everyone’s mind,” said
Fury from the Democrats’ pro- dent’s son but a range of civil ser- cans would know, if President Biden’s judicial nominees. “Presi- There are signs that voters have tively narrow. “I do think it’s impor- Sen. Elizabeth Warren (D., Mass.).
gressive wing has been even vants and Trump’s perceived ene- Biden spoke about them…The only dent Biden is making every day of formed a warm impression of tant to debunk the notion that he [email protected]
sharper: “This is one of the lamest of mies. (Biden didn’t hold a press way to win the war of attention is by this term count as he accelerates Trump’s early moves. A CBS/You- has a mandate from the voters, ©2024 DOW JONES & CO. INC.

Why Disney is plowing cash into a cruise line expansion Ad giant Omnicom acquires
Robbie Whelan
[email protected]
Interpublic in $13.25 bn deal
ally. undefined undefined
“Given the fact that we are still
recent time period for which
such figures are available) and
NEW YORK a relatively small player and we 32% the previous year.
see this strong demand, it’s Mazloum, the head of the Reuters

S
trains of “When You only natural and actually the division that includes cruises, [email protected]
Wish Upon a Star” best time to invest in this busi- said that with only 5% of the

O
drifted across lower ness,” said Thomas Mazloum, Caribbean market and 2.5% of mnicom Group has
Manhattan on a recent who leads the part of Disney’s the global market, Disney is struck a $13.25 billion
November evening, echoing Experiences division that still a small player in cruising. all-stock deal to buy
from Disney ’s newest cruise includes cruises. But among Disney’s menu of rival Interpublic Group, creat-
ship on its path south down the Cruise travel overall sur- entertainment options, it is ing the world’s largest adver-
Hudson River toward Florida. passed prepandemic levels last one of the experiences that tising agency as traditional
Chief Executive Bob Iger year, attracting 31.7 million rates the highest among players look to better compete
had christened the 1,119-foot- passengers, up from 29.7 mil- guests. with big tech firms amid accel-
long Disney Treasure the pre- lion in 2019, according to the Consumer satisfaction sur- erating use of AI.
vious evening while 1,000 Cruise Lines International Growth is slowing in Disney’s parks businesses, and its legacy TV veys show that 82% of Disney’s The deal, announced on
drones hovered overhead in Association, a trade group. business is suffering from cord-cutting. REUTERS cruise passengers intend to Monday, is expected to attract
the shape of a Champagne bot- More affluent millennials take another and that sea jour- regulatory scrutiny as it seeks
tle. The fleet of drones trans- are choosing cruises over sip a margarita and eat enchi- ports, which are largely passed neys are the highest-rated to merge the world’s third- The combined company would have revenue of more than $25
formed into shapes of images land-based vacations in part ladas. On a typical Disney on to the customer. Entertain- experience in Disney’s Enter- largest ad buyer, Omnicom, billion, based on 2023 figures. ISTOCKPHOTO
from “Aladdin,” “Coco,” because a host of new, larger cruise, costumed characters ment and dining options and tainment division portfolio, with the fourth-largest - Inter-
“Moana” and other movies as ships with premium amenities such as Pluto, Goofy and even free unlimited soda—a Mazloum said. public. Both companies are zon.com have in recent years steal clients and talent,” Nat-
pop star Jordin Sparks belted make them feel they get good Donald Duck roam the decks perk harder to come by on At Disney’s busiest cruise based in New York. attracted marketing dollars hanson said.
out a song written specially for value for the money, JPMor- and movie theaters show Dis- competitors’ cruises—are part port, Port Canaveral, two of Interpublic shareholders away from traditional agencies Regulatory roadblocks had
the new ship. gan Chase said in a June ney films that are playing on of the value proposition that the line’s ships launched 157 will receive 0.344 Omnicom by offering both advertising forced Omnicom and Publicis
The spectacle was a coming- research note. Rising interna- land in cinemas. passengers find attractive, the voyages that were on average shares for each share held, or tools and marketplaces to buy to call off their $35 billion
out party of sorts for a business tional airfares have also made Disney is betting that inter- company said. 92.4% full in the year ended in $35.58 based on Omnicom’s and sell them. merger, which would have
that for years has played a bit cruises that leave from ports in est in cruises will prompt trav- “You want it to feel like part September, publicly available last close. This represents a Soaring use of AI tools that created the world’s biggest
part in Disney’s overall enter- their home country more elers to pay more for its of the mythology,” said Danny port information shows. That premium of 21.6% to Interpub- allow businesses to create ads advertising group, in 2013.
tainment empire, but is now attractive to some overseas cruises, which tend to cost Handke, one of Disney’s parks metric, the average number of lic’s close on Friday. cheaper and faster has also Meanwhile, Publicis’ early
increasing in prominence. families. more than mass-market cruise and attractions designers who passengers per vessel as a Interpublic’s shares, down squeezed traditional agencies, investments in data and AI
Growth is slowing in the enter- Most cruise lines offer chap- lines such as Royal Caribbean helped create the Haunted proportion of each vessel’s more than 10% year to date, forcing them to scramble to technology have helped it
tainment company’s parks eroned children’s activities. or Carnival. A four-day cruise Mansion-themed bar aboard maximum capacity, has were up nearly 15% in premar- develop similar weather the
businesses, and its legacy TV On the Disney Treasure, par- to the Bahamas for a family of the Treasure. returned to prepandemic lev- ket trading. Omnicom fell 4%. in-house tools to The deal is changes in the
business is suffering from ents can sunbathe with cock- four on the Disney Wish ship, The company discloses cer- els for Disney. The combined company retain clients. expected to close industry better
cord-cutting , but Disney fans tails by the pool while children leaving tain finan- Disney is now increasingly would have revenue of more With more in the second half than rivals.
worldwide can’t seem to get are entertained until as late as from Flor- cial metrics focused on the Asian market, than $25 billion, based on tech-driven solu- of 2025 and Omnicom
enough of cruises. midnight with activities such ida’s Port for its where hundreds of millions of 2023 figures. It would com- tions coming into
generate annual shareholders will
When Disney announced as playing in a “Star Canaveral cruise busi- potential Disney Experiences pete with the UK’s WPP and the market, Mof- own 60.6% of the
plans last year to “turbo- Wars”-themed workshop, during a popular spring-break ness but doesn’t share its full customers live without a France’s Publicis Groupe SA, fettNathanson cost savings of combined com-
charge” investment in its completing hero’s missions set week next April, starts at financials. In the year ended in nearby theme park. which generated annual reve- analyst Michael $750 million pany and Inter-
Experiences division, which in the Marvel Comics universe $7,692. On Royal Caribbean, a September, Disney said a 5% Launching next year, the nue of 14.85 billion pounds Nathanson said public investors
includes theme parks, resorts or designing a virtual theme- much larger cruise line, a com- increase in revenue for the Disney Adventure, which can ($18.97 billion) and 13.10 bil- he was concerned the rest. The deal
and consumer products, the park ride to their specifica- parable trip starts at $3,368. Experiences division that hold up to 6,700 passengers lion euros ($13.86 billion), the underlying value proposi- is expected to close in the sec-
company said 20% of the $60 tions. “You’re paying up to cruise includes cruises was driven in and will initially operate in respectively. tion of an ad agency’s offering ond half of 2025 and generate
billion over the next decade The Disney Treasure offers with Mickey,” said Matt Hoch- part by higher average cruise Southeast Asia, is Disney’s big- Omnicom, valued at $20.2 would remain pressured. annual cost savings of $750
would go toward its cruise “Moana” and “Beauty and the berg, editor of Royal Carib- line ticket prices. gest ship yet. It will sail out of billion, owns brands such as “An integration of this size million.
business and other projects Beast” themed stage shows, a bean Blog, which focuses on “Passenger cruise days,” the Singapore—the company’s BBDO and TBWA, while would be unprecedented and John Wren will remain
that haven’t been announced piano bar themed after the the cruise industry and isn’t number of passengers aboard first-ever service there—and Interpublic owns McCann, likely challenging. The win- Omnicom’s chairman and
yet. Disney plans to more than movie “The Aristocats,” and a affiliated with the cruise line. Disney ships multiplied by the aims to attract affluent Indian, Weber Shandwick, and Medi- ners in this kind of transaction CEO, while Interpublic boss
double its fleet from six to 13 Mexican eatery where you can Disney says that some of the days they spend on voyages, Indonesian and Malaysian abrands, among others. could end up being the Philippe Krakowsky will serve
ships by 2031 and further watch mariachi musicians sing cost of cruise tickets comes rose 14% in the company’s travelers. Tech giants such as Alpha- newco’s biggest rivals who as co-chief operating officer
expand its service internation- songs from “Coco” while you from docking fees charged at 2023 fiscal year (the most ©2024 DOW JONES & CO. INC. bet-owned Google and Ama- would use the deal to try to along with Daryl Simm.
LIVEMINT.COM NEWS WRAP TUESDAY, 10 DECEMBER 2024
NEW DELHI 09

NEWS
8 bn
THE NUMBER of spam calls flagged by
₹7.5 tn
THE AMOUNT Adani Group said it will
26,15,953
THE NUMBER of two-wheelers sold in
$765 mn
THE VALUE of a 15-year deal signed by
₹1,000 cr
The amount private equity fund Wilson
IN Bharti Airtel on its network in two and a invest in Rajasthan, half of it in the next India in November 2024, up 15.8% from baseball star Juan Soto with the New York and Hughes India plans to invest in
NUMBERS half months since the launch of its
AI-powered spam-fighting solution
five years, across sectors including green
energy and infrastructure
22,58,970 units a year ago, driven by the
festive spillover, according to Fada
Mets, the largest in Major League
Baseball history
Cox & Kings over three years to revive
the travel company

HOWINDIALIVES.COM

CE Info scraps plan TOUCHDOWN IN JEWAR Media sector to hit

to invest in CEO co ₹3.65 tn by 2028

C I
E Info Systems, the parent firm of digital ndia’s media and entertainment sector is
maps provider MapmyIndia, said on poised to grow at a compound annual
Monday that it has scrapped plans to growth rate (CAGR) of 8.3%, reaching ₹3.65
invest in a company being set up by its trillion ($19.2 billion) by 2028, far outpacing
outgoing CEO after receiving investor the global growth rate of 4.6%, according to
feedback, with its shares closing 16% higher. PwC India’s report, Global Entertainment &
MapmyIndia powers Apple Inc’s maps in the Media Outlook 2024–28: India Perspective. The
country and garners 99% of its revenue from surge is being driven by improved internet
providing map-related services to other connectivity, rising advertising revenues, and
businesses. On 29 November, CE Info Systems favourable government policies around
said that CEO Rohan Verma would establish a foreign direct investment (FDI).
mapping services company that caters to Bolstered by India’s economic expansion
customers directly after stepping down, with and rising consumption, the advertising
the former set to pick up a 10% stake in the new market is expected to grow at a 9.4% CAGR,
entity and investing an additional ₹35 crore. from ₹1.01 trillion in 2023 to ₹1.58 trillion by
CE Info Systems did not provide details on 2028—1.4 times the global average. Digital
the feedback from its investors. advertising will be the primary driver, with
“MapmyIndia’s board has reversed its internet advertising projected to grow at a
decision to make any equity or debt investment staggering 15.6% CAGR, reaching ₹85,000
in the proposed new company,” CE Info said in crore by 2028. LATA JHA
a statement. REUTERS

The first test flight gets a ceremonial water cannon salute upon its landing at Noida International Airport in Jewar, Uttar Pradesh, on Monday. PTI

Forex traders said the rupee remains in a

Govt functioning but challenge Kia India said it will increase prices of its entire
model range by 2% from January.
weakening mode due to dollar demand.

Rupee plunges 20p

REUTERS

looms: Syrian PM Ghazi Jalali TaMo, Kia India to

hike vehicle prices
to close at 84.86/$
T
ata Motors and Kia India on Monday

T
he rupee saw its steepest fall in over a announced plans to hike vehicle prices
month and plunged 20 paise to settle at Israel has also seized a buffer zone inside Syria after Syrian troops withdrew from January to offset the impact of
lowest-ever level of 84.86 against the US rising input costs. Tata Motors said it will hike
dollar on Monday, amid volatile geopolitical the price of its passenger vehicle portfolio,
situation and muted trend in domestic equities. AP rockets to keep them from falling into the hands of returning to normal while most shops and public including electric vehicles, by up to 3% from
Forex traders said the rupee remains in a [email protected] extremists. Israel has also seized a buffer zone institutions were closed. In public squares, some January next year.
weakening mode due to dollar demand from DAMASCUS inside Syria after Syrian troops withdrew. people were still celebrating. Civilian traffic The price hike is being undertaken to
importers and foreign banks. In northern Syria, Turkey said allied opposition resumed but there was no public transport. Long partially offset the rise in input costs and

S
At the interbank foreign exchange, the rupee yria’s prime minister said Monday that forces seized the town of Manbij from Kurdish-led lines formed in front of bakeries and other food inflation, the Mumbai-based auto major said in
opened at 84.70 and touched the lowest level most cabinet ministers are still working forces backed by the United States, a reminder that stores. a statement. “Effective January 2025, the price
of 84.86 against the greenback during intra- from offices in Damascus after rebels even after Assad’s In some areas, increase will vary depending on model and
day trade. The unit ended the session at its all- entered the capital over the weekend and departure to Russia small groups of variant,” it added.
time low level of 84.86 against the dollar, overthrew President Bashar Assad. the country remains Damascus was quiet on Monday, armed men were Kia India, which sells models like Seltos and
registering a sharp fall of 20 paise over its Streams of refugees crossed in from neighbouring split among armed with life slowly returning to normal stationed in the Sonet, said it will increase prices of its entire
previous close. countries, hoping for a more peaceful future. groups that have streets. “We have model range by 2% from January.
On Friday, the rupee appreciated by 5 paise But there were already signs of the difficulties fought in the past. while most shops and public nothing against you, The price hike, effective from 1 January
to settle at 84.66 against the dollar. ahead for the rebel alliance now in control of much The Kremlin said institutions were closed neither Alawite, nor 2025, is primarily due to rising commodity
The rupee’s previous lowest closing level of the country, which is led by a former senior Russia has granted Christian, nor Shiite, prices and escalating supply chain-related
was at 84.75 against dollar on 4 December, al-Qaida militant who severed ties with the political asylum to nor Druze, but costs, the automaker said in a statement. PTI
while the steepest fall was recorded on 6 extremist group years ago and has promised repre- Assad, a decision made by President Vladimir everyone must behave well, and no one should try
November when it had closed 22 paise down sentative government and religious tolerance. The Putin. Kremlin spokesperson Dmitry Peskov to attack us,” the fighter said.
from preceding session. Meanwhile, the dollar rebel command said Monday they would not tell declined to comment on Assad’s specific where- Prime Minister Mohammed Ghazi Jalali, who
index, which gauges the greenback’s strength
against a basket of six currencies, was trading
women how to dress.
Israel said it is carrying out airstrikes on sus-
abouts and said Putin was not planning to meet remained in his post after Assad and most of his top
with him. officials vanished over the weekend, has sought to
Hyundai to set up
lower by 0.09% at 105.96. PTI pected chemical weapons sites and long-range Damascus was quiet on Monday, with life slowly project normalcy.
600 EV stations

H
yundai Motor India on Monday said it
Inventurus IPO to will install around 600 public EV fast
DMEDL raises ₹775 cr via green bonds charging stations across the country in
open on 12 Dec the next seven years. The company plans to
have a network of 50 fast public charging
The proceeds from the issue of ‘green stations by the end of December 2024, the

I
nventurus Knowledge Solutions Ltd, which bonds’ has been used for activities such as automaker said in a statement.
provides healthcare support services, on expenditure on avenue plantation, median The ambitious initiative underscores the
Monday set a price band of ₹1,265-1,329 per plantation, construction of animal company’s commitment to fostering
share for its ₹2,498-crore initial public offering underpasses, natural stormwater drainage, sustainable mobility and is poised to play a
(IPO). The initial share sale will be open for streetlight on renewable energy (solar), pivotal role in India’s transition to cleaner
public subscription during 12-16 December, waste recycling and reuse and rainwater energy, it added.
with bidding for anchor investors scheduled for harvesting, the statement said. Hyundai Motor India function head—
11 December, the company announced. NHAI chairman Santosh Kumar Yadav corporate planning Jae Wan Ryu said the EV
The company has reduced its issue size, said, “This first of its kind initiative for the market in India is expected to grow robustly by
which now comprises an Offer For Sale (OFS) of roads and highway sector will set a 2030. Studies conducted by HMIL have
1.88 crore equity shares by promoters and benchmark and encourage participation Adani Group chairman and billionaire founder highlighted that customers are apprehensive
individual shareholders, with no fresh issue from a diverse set of investors.” Gautam Adani. PTI about driving their EVs for long-distance
component. Earlier, the OFS size was 2.82 crore, DMEDL has raised around ₹43,000 cr for the The aggregate size of the issue was ₹775 commutes on highways due to a lack of
as per the draft papers.
The company has reserved 65,000 shares
Delhi-Mumbai Expressway project. PTI crore with a base issue size of ₹500 crore
and a green-shoe option to retain
Adani’s $88 bn India charging infrastructure, he noted. PTI

investment plan
D
worth ₹8.64 crore for its employees. ME Development Ltd (DMEDL), an oversubscription up to ₹275 crore, with a
Since the issue is completely an OFS, the arm of National Highways Authority yield at 7.23% per annum.
company will not receive any proceeds from the of India (NHAI), has raised ₹775 DMEDL aims to raise about ₹48,000
Vi to raise $234 mn
A
IPO and the entire fund will go to shareholders. crore through issuance of green bonds in crore from banks and financial market and dani Group will invest over ₹7.5 trillion
At present, promoters and promoter group
entities hold close to 70% stake in the company,
roads and highways sector, an official
statement from the ministry of road,
has successfully raised around ₹43,000
crore for implementation of the flagship
($88.5 billion) in Rajasthan, a top executive
said on Monday, marking the group’s first via share issue
which is backed by Rekha Jhunjhunwala and transport and highways said on Monday. Delhi-Mumbai Expressway project. PTI major investment since the US indictment of its

V
RARE Enterprises. PTI billionaire founder. odafone Idea will raise up to ₹1,980 crore
The announcement, at an event in Jaipur ($233.8 million) through the issue of
attended by Prime Minister Narendra Modi, preferential shares, the Indian telecom
comes less than a month after US authorities company said on Monday.
India, Bangladesh foreign secretaries meet in Dhaka accused founder Gautam Adani and some top
executives of being part of a scheme to pay
Vodafone Idea (Vi) said it will issue shares to
Vodafone Group entities Omega Telecom
bribes worth $265 million to secure Indian Holdings and Usha Martin Telematics worth up

F
oreign secretaries of India and Bangladesh met here Monday for the high- power supply contracts. to ₹1,280 crore and ₹700 crore, respectively.
level talks between the two nations amid strained bilateral ties following The group has called the charges “baseless”. The fundraise will likely help the debt-
the ouster of prime minister Sheikh Hasina in August. The indictment has sparked political saddled firm pay some of its dues to network
Foreign secretary Vikram Misri arrived in Dhaka earlier in the day on an wrangling in India as many opposition parties infrastructure provider Indus Towers, to which
Indian Air Force jet for a day-long visit. Soon after his arrival, Misri met his accuse Modi and his Bharatiya Janata Party it owes about ₹5,000-6,000 crore, according to
Bangladeshi counterpart Mohammad Jashim Uddin and held one-on-one talks (BJP) of favouring Adani and blocking Ambit Capital’s Vivekanand Subbaraman.
before the formal meeting with delegates from both sides. investigations against him in India, allegations Vodafone Idea did not specify details about its
It is the first high-level visit by an Indian official since 5 August when Hasina both have denied. BJP has said it had no reason plans to use the funds.
was ousted. “The meeting between our foreign secretary Jashim Uddin and his to defend Adani and that the law will take its As of September-end, its total debt pile stood
counterpart Vikram Misri is taking place as scheduled at the state guest house course. at ₹2.16 trillion, including deferred spectrum
Padma. They first held brief one-on-one talks and then the formal meeting The allegations have raised concerns among payment obligations it owes to the government.
began with delegates from both sides,” a Bangladeshi foreign ministry official some partners and investors of the group, with The firm, formed by a merger between the
said. The official added that the Bangladeshi side would hold a media briefing at least one Indian state reviewing its power deal Indian arm of the UK’s Vodafone Group and
later Monday about the talks, which were expected to feature all issues of India’s foreign secretary Vikram Misri with chief adviser of Bangladesh with Adani, and TotalEnergies halting further Aditya Birla Group’s Idea Cellular in 2018, has so
bilateral ties. PTI Muhammad Yunus during a meeting in Dhaka on Monday. PTI investments in the conglomerate. REUTERS far raised about ₹24,000 crore in the year. PTI
10 TUESDAY, 10 DECEMBER 2024
NEW DELHI LONG STORY LIVEMINT.COM

HOW LIVSPACE IS
READYING FOR AN IPO
With metros saturated, India’s largest home interior startup is looking for growth in the heartland

Samiksha Goel
[email protected] ROOM TO IMPROVE mint
SHORT
BENGALURU While Livspace has managed to cut STORY
losses, its pace of growth slowed in FY24.

A
nkita Vashistha, founder (in Singapore $ million)
and managing partner of Revenue Loss/profit WHAT
venture capital firm Arise FY22 102 -182
Ventures, had a disappoint- The lossmaking Livspace last
ing experience with Benga- FY23 188 -130 raised funding in 2022. The home
luru-based home interior company Liv- interiors segment has seen
FY24 192.5 -64.5 muted investor sentiment in
space when she hired it to design a rent-
ed-out home three-four years ago. While recent years and all the big
Funding pattern names are in the red
she initially admired the concept and the Livspace was valued at $1.2 billion during
experience centres, the whole process its last fund raise, in 2022.
and the final outcome left her disap-
pointed. “Timelines weren’t met, materi-
Round (date of funding)

Series A (Dec 2014)

Amount (in $ million)
AND
als didn’t match specifications, and the 5
installation and after-sales service were Series A (Aug 2015) The company’s revenue growth
9
terrible,” recalled Vashistha. “Customer has slowed in FY24. On a positive
Series B (Aug 2016) 15 note, it managed to cut losses
service was unresponsive, and I had to
settle for what they provided.” Series B (Aug 2017) 11 substantially—over the last 12
Mumbai-based Kiran More, a sales Series C (Jan 2018) 29
months, it has focused on
professional working for a tech com- reducing its cash burn
Series C (Sept, 2018) 70
pany, went through a similar experience
this year, dealing with inferior parts, Series D (May 2019) 45
incorrect installation and delayed time- Series D (Jan 2020) 90 NOW
lines. Vashishta and More are not alone.
Venture Debt (Oct 2020) 4 Livspace is looking to expand
There is no dearth of complaints and
reportage on the internet around the Series E (Jun 2021) 6 into smaller towns and cities,
abysmal experiences Livspace’s custom- Series F (Oct 2021) 58 largely in the franchise format. A
ers have had to endure. successful expansion is
Series F (Feb 2022) 184 important to drive growth in its
Seated in a light blue shirt in a confer-
ence room at Livspace’s Bengaluru Source: Tracxn core business
office, chief operating officer (COO)
Ramakant Sharma acknowledges the
mountain of complaints. In his view,
because interiors are a big-ticket invest- uting 30-35% of demand, hold immense
ment for customers, when issues arise, potential, driven by urbanization and the
the impact is felt strongly. But Sharma rising affluence of an aspirational middle
claims that despite everything over 90% class,” he said.
of customers report a satisfactory experi- But there are challenges too: small-tick-
ence. Mint has not been able to verify the et-size projects, lack of resources, logistics
veracity of that claim. and perhaps a lower appetite as compared
While Livspace has always made to metros.
headlines for consumer complaints, its “Maintaining quality and service con-
latest challenge goes beyond the con- sistency across diverse product categories
sumer experience. The company’s reve- and geographies is a key challenge as they
nue growth has slowed. On a positive scale up operations across cities. A short-
note, it managed to cut losses substan- age of skilled labour could further compli-
tially (see chart). cate timelines and budgets,” said Desai.
Livspace last got a funding infusion in
February 2022, when it raised $180 mil- RIDING THE BRAND
lion at a valuation of $1.2 billion. The fund-
ing was around nine times the company’s
revenue at the time, said an industry exec-
T he company is now into the biggest
experiment it may have ever seen,
launching its own branded products,
utive, requesting anonymity. This, he said, specifically furnishings and appliances.
has become its biggest problem. “You This is the first time it will retail Liv-
have raised at such a high value and even space products.
three years later, you are not there,” said Furnishings, according to Sharma,
the industry executive. will include about 4,000 stock keeping
While investors have been optimistic units (SKUs), including bedsheets, pil-
about the growth in the sector, expecting lows, pillow covers, quilt covers, and
a 50% compound annual growth rate blankets. Last month, Livspace launched
(CAGR) in the next few years, industry hobs and chimneys in Bengaluru for Liv-
experts feel this optimism may not align space customers and plans to launch fur-
with reality. Amid all this, Sharma is look- nishings and appliances such as dish-
ing to take Livspace public in the next 18 washers next March.
months. In a two-and-a-half-hour interac- Earlier, Livspace sold kitchens and
tion with Mint, he outlined how he aims to asked customers to buy chimneys from a
get the company there amid the slow- third party. With the recent launch, it is
down in its pace of growth. selling chimneys to Livspace customers,
and plans to open up to customers outside
THE BEGINNINGS the platform as well.

S harma, who studied metallurgical

engineering from IIT Kanpur,
worked with a few startups before he
Sharma believes that furnishings could
become a ₹1,000 crore business by itself.
“We are creating dedicated show-
joined Myntra as VP of engineering. rooms and retail showrooms in malls and
Myntra, according to Sharma, is where high streets, so furnishings is going to be
he learnt about ecommerce and Indian a full-fledged business in itself,” he said.
consumers. “From a cultural and learn- There will also be a separate website,
ing perspective, as well as understand- Livspace chief operating officer Ramakant Sharma. RAJESH KUMAR/MINT which will launch sometime by March,
ing the consumer internet of India when for a pure-play e-commerce business
it really began, it (his stint) was fortu- with furnishings.
nate,” Sharma said. Myntra’s success
helped him realize new entrepreneurs SUSTAINABLE GROWTH current and former employees. try. It is a very thin margin business and expand into smaller towns and cities, OPTIMISTIC OUTLOOK
could succeed, and so he decided to take
the plunge. T he home interiors segment has The CEO confirmed that discounts
seen muted investor sentiment in have indeed been slashed.
After studying at Indian School of recent years and all the big names have
requires very hard negotiation,” he added.
On the other hand, HomeLane founder
Srikanth Iyer believes the company’s
largely in the franchise format. A success-
ful expansion is important to drive
growth in the core business.
A ccording to Sharma, since October
last year, Livspace has been a cash-
flow positive company. “Operations have
Business (ISB), Sharma started a beauty been struggling with losses. Home- PULLING THE PLUG commercial vertical, branded Cubico, has Sharma is confident the expansion will not burnt money at all. In our business,
and fashion ecommerce startup called Lane, Livspace’s direct competitor,
Violetbag. But it could never raise capital recently acquired smaller rival Design- I
n another major decision, last year, the
company shut its business-to-business
and had to be shut down. “We were get- Cafe as the latter could not raise capital (B2B) vertical, which was a category big-
the potential to become a ₹1,000-crore
business on its own in the next five years.
Livspace also experimented with pro-
work. “We have four different offerings consumers pay 50% advance and then we
based on the same technology and supply deliver. So, we are operating cash flow
chain. Let us say we have to go to a new profitable because of the working capital,
ting good traction—about 500 orders a to survive. ger than ₹120 crore, according to former viding individual services such as painting city; we can choose to launch all four of which was in our favour. Next quarter, we
day. But cosmetics was a low-average-or- Over the last 12 months, Livspace has employees. and false ceilings to customers, as Urban them or just one of them. We can open in will be a fully Ebitda profitable company,”
der-value segment at that time. The cost focused on reducing its cash burn. In a The average ticket size was at least ₹30 Company does. But that, too, did not take even the smallest city, where I can go with he asserted.
of logistics, payment major shift, the com- lakh and the category was not restricted to off and had to be shut down, according to Bello,” he explained. While the pace of growth has
gateway, and packaging pany has hired in-house offices. There was retail, hospitality, former employees. At the moment, tier three cit- slowed, Sharma is confident it
was higher than our Livspace currently has a designers instead of healthcare and many more sub-segments “We are already offering these services ies only have the Select model. will pick up. “When we talked
margin,” he said, noting presence in 65 cities with outsourcing projects making it a complex category, according to Vesta and Vinciago (top-end verticals) The launch of Bello six months about the platform, the funda-
that investors stayed and charging a commis- to a second industry executive. customers in a bundled format. We ago seems aimed at making the mental thing is the capability to
away for that reason. 105 stores and plans sion, as it did earlier. “The vertical did not take off because thought of selling them as individual ser- tier 2 and tier 3 expansion work. spawn new businesses and grow
Sharma continued to expand to 250 cities Today 90% of Live- they tried to implement the same process vices. That hypothesis is still there but we Livspace currently has a them independently. This is
looking for a complex space’s designers are on into commercials and adapt the same have paused it,” Sharma clarified. presence in 65 cities with 105 Liked this story? what we have been doing,” he
problem to solve and over the next the payroll. This has technology,” said the executive cited Livspace has four verticals: Bello stores and plans to hit 250 cities Share it by said. “There is a lot of leverage of
found one when he helped with control above. “Also, it is a very price-sensitive (budget offering with a ₹1-3 lakh price in the next two-three years. scanning the the infrastructure, including the
bought a home in Ben- 2-3 years over quality and execu- market, so you have to be very competitive point), Select (₹3-8 lakh), Vesta (₹8-30 “With the four solutions we can QR code. same supply chain, same ware-
galuru and was doing the tion, and kept costs with the pricing. Plus, the profit margin is lakh), and Vinciago (₹30 lakh-1 crore). even go to 300 cities,” Sharma houses, same logistics, same
interiors. “That was the largest money I in check. very low compared to residential,” the Another business, Casantro, a B2B verti- declared. “At the moment 35-40% is com- packaging, and same technology. I think
have ever given to anyone. The interior The company has also been hiring executive added. cal, sells modular interior solutions, ing from tier 3 or 4 cities and 60% from this will keep multiplying for the next
process, even if I didn’t want anything freshers and training them to cut some Sharma confirmed the closure of the including cabinets and wardrobes, to the large cities. Some day, I think we’ll see 15-20 years.”
fancy, just basics—curtains, bed, dining costs, according to over half a dozen B2B vertical. “We discontinued most low- designers or stores, which eventually a 50-50 situation.” The Livspace founder said the company
table, couch and a living room—was not employees who spoke to Mint. “They margin businesses. Last year, growth was sell it to the end consumer. In a sense, Livspace may have no choice has $95 million in the bank and isn’t
easy,” he said. have reduced the salary bracket for new lower because we shut down the one busi- Vesta and Select are the biggest catego- but to go to lower tiers. “Metros/tier-1 cit- actively seeking funding, nor is valuation
“I realized Indians spend almost $20 employees. For example, the salary of ness that actually could have grown. So, it ries. While Vesta covers designing of the ies account for the majority of demand a primary concern. However, Sharma is
billion every year on home renovation, an assistant general manager was was largely a year for profitability and entire house, Select includes the kitchen today, but have started saturating, with far from stress-free—the company’s top
furniture and interiors, and there’s not around ₹14-15 lakhs, now they are hir- optimization,” he said. and wardrobes. key players observing lower growth in priority is ensuring the success of its new
even one company attempting to solve ing for a pay of ₹10-12 lakhs,” said one While residential has 55% margin, com- these cities,” said Mit Desai, practice initiatives. “If we go public, we really want
it,” he said. That’s how Livspace, former employee. mercial has a single-digit margin or so, TIER 2 AND TIER 3 EXPANSION leader, consumer and internet, at Praxis to say that this thing is working,” Sharma
cofounded by Sharma and Anuj Srivas-
tava, was born in 2014.
Discounts have come down from about Sharma said. “A B2B business, I believe, is
30-35% to about 18-20%, according to never going to make money in this indus- T he company, having fairly pene-
trated metros, is now looking to
Global Alliance, a consultancy. “That said. Livspace’s customers, no doubt, will
being said, tier-2 and tier-3 cities, contrib- want to say the same thing.
LIVEMINT.COM MINT MONEY TUESDAY, 10 DECEMBER 2024
NEW DELHI 11

Why to avoid biz payments POWER

POINT

from personal credit cards

RANJITH KRISHNAN
& USHA GANAPATHY
SUBRAMANIAN
We welcome your views and comments at
[email protected]

Banks repeal rewards or close accounts if they find business transactions from personal cards
ESG INVESTING
Shipra Singh
REMAINS FRAUGHT
Hedge [email protected]
Business and personal credit cards WITH CHALLENGES
C
redit cards come in two It is advised to keep business expenses separate from personal expenses
funds, asset broad categories—personal
The issue Ambiguous terms What banks monitor

W
and business. The fine print ith global warming, dwindling biodiversity and rising
Banks prohibit Business expenses not High value business spends
managers of personal cards clearly
says that they cannot be
used for business spending. However,
business expenses
made on personal
specified; the onus to
not violate bank's
are flagged. For example,
monthly power bills or flight
pollution threatening posterity and widening economic
disparities, campaigns such as Race to Zero and the
United Nations’ Sustainable Development Goals matter more than
credit cards terms is on cardholder bookings of several lakhs
are bullish the majority of self-employed or busi-
ness owners bill some of their business Actions that bank can take
ever. Investors these days are conscious about where their money
goes, and environment, social and governance (ESG) has evolved
expenses to their personal cards. How as a framework to back businesses that take the conscientious
on dollar do banks allow this?
Banks monitor spending activities,
Asks for documents to prove suspicious payments were not business
related. Freezes rewards redemptiom till investigation is complete. If faulty
spends found, rewards can be withdrawn and even card suspended
route to profits. ESG funds have found favour among investors glo-
bally because they help meet responsible-investing goals while
regularly auditing suspicious transac- entrusting the arduous stock-selection process to fund managers.
Bloomberg tions and on finding any misuse, they What is the right way to bill business ESG funds are mutual funds or managed investment schemes
[email protected] repeal the accumulated rewards, or expenses on personal credit cards? that take into account the ESG performance of companies when
worse, suspend the card. There is no right way and doing so violates banks' deciding stocks in the portfolio. An ESG fund may be actively man-

A
resilient US economy How banks monitor terms. While small spends may go unnoticed, high aged, with fund managers cherry-picking the stocks, or passively
and deepening geopo- As per the most important terms and value spends draw investigation managed like index funds or exchange-traded funds (ETFs).
litical tensions around conditions (MITC) of banks, non-com- What's the alternative? ESG funds have the potential to play a significant role in promot-
the world are making asset mercial credit cards can be used for per- Business credit cards ing sustainability measures. They are not project finance, meaning
managers rethink their expec- sonal expenses only. Non-personal they may not back specific sustainability projects of businesses.
tations for a weaker dollar. usage includes buying goods or making HDFC Biz Black highest rewarding business credit card Rather, they ensure funds flow to companies that are deemed well-
Investors such as pension payments to run a business, making Key points to note governed and socially and environmentally responsible based on
funds, insurance firms and commercial payments to merchants, Joining fee Renewal fee Eligibility:  5X rewards applicable the ESG criteria evolved by fund managers.
11,800 (includes 18% GST) 11,800 (includes 18% GST) Self-employed on minimum 50,000
mutual funds halved their net and any other expense not for personal with ITR of
The fund managers score these companies based on the data
Joining fee waived on spending Fee waived on spending monthly spends
dollar short positions to $2.05 consumption, which includes buying 1.5 lakh in first 90 days 7.5 lakh above 30 lakh available from their sustainability reporting – including from the
billion as of 3 December from things for others to maximise spending.  Max 7,500 RPs given in a business responsibility and sustainability reports (BRSR) man-
month under 5X
a week earlier, the least since However, certain expenses are diffi- Rewards earning rate: 1 reward point (RP) = up to 1 dated by Sebi for the top 1,000 companies by market capitalisation.
accelerated program
April 2017, according to Com- cult to classify as personal or non-per- If such reporting is not available, they may seek information from
Reward Spend Reward  Max 75,000 RPs can be
modity Futures Trading Com- sonal. For instance, flight or hotel book- companies to evaluate their ESG performance.
earning rate category rate redeemed per month
mission data compiled by ings made by an employee for a business Baby steps
Regular reward 150 = 5 RP Retail spends up to 3.33%  Max RPs on insurance
Bloomberg. Hedge funds trip that the company reimburses later. While ESG investing in India still in its nascence, the concept has
Accelerated are 5,000 and groceries
boosted their bullish bets by Or say a freelancer works out of a home 150 = 25 RP TDS, advance tax, GST up to 16.5%
2,000 per month gained ground globally. The assets under management (AUM) in
5X rewards bill payments on PayZapp*
9.3%, having held a favorable office and pays the house’s power bill sustainable investing have touched $30
Hotel & flight booking on  70% RPs can be
view on the US currency since with a credit card. *except rent, EMIs, wallet load, education, MMT MyBiz redeemed per transaction, ESG funds trillion and are projected to grow fur-
October, the data show. For merchants that accept both retail clubs, hospital, credit card payments while 30% payable by card can play a ther. In this context, providing an ena-
Business tools** bought on
Bloomberg’s dollar gauge and business payments such as utilities,
significant role bling ground for foreign investors to
**like Tally, Office 365, AWS, Google, Credflow,
Azure & more via SmartBuy BizDeals SmartBuy BizDeals
has advanced about 5% since flights, hotels, and vendor payment plat- back sustainability oriented entities in
dropping to an eight-month forms like BharatNXT, there are no sep- in promoting India sounds fitting.
low in late September as trad- arate Merchant Category Codes (MCCs) sustainability The International Financial Services
BUSINESS CREDIT CARD USERS
ers positioned for higher US for retail and business. So, there is no measures Centre (IFSC) in GIFT City, Gujarat, is
inflation under a Donald straight method for banks to know if it’s ZAKHIL SURESH, ABHAY DAGA, PUNE evolving as a centre for sustainable
Trump presidency. Growing a business or personal expense. BENGALURU Owns an e-commerce finance under the aegis of its able regu-
risks to Federal Reserve’s HDFC Bank, ICICI Bank, Axis Bank Founder of global crypto medical devices company lator International Financial Services Centre Authority (IFSCA).
interest-rate cuts and haven and Kotak Mahindra Bank did not investment platform Cards he uses The latest IFSCA bulletin shows that the cumulative ESG labelled
demand amid geopolitical ten- respond to Mint’s emailed queries. Cards he uses  HDFC Biz Black debt-listing in IFSC exchanges is over $14 billion as of September.
sions are also supporting the With such grey zones, high-value HDFC Regalia Business  HDFC Corporate Green/sustainable loans by international banking units in IFSC
greenback, though Wall Street transactions done solely to maximise Credit Card Premium was over $1.5 billion in 2023-24, backing projects ranging from
banks are forecasting it to rewards are generally flagged and Uses it for: Licence renewal  IDFC Business Credit Card renewable energy, energy efficiency to social education and
trend lower next year. audited. Ajay Awtaney, founder and edi- fee in different countries where firm registered Uses them for: GST, TDS & ITR payments, online affordable housing. With India’s net-zero transition by 2070
Last week some Fed speak- tor of LiveFromALounge.com, said and consultant charges towards accounting, tax advertising, courier charges, staff travel requiring $10 trillion, and more required for the social sector, these
ers sounded cautious over rate banks generally go after card owners and other compliance costs in those countries expenses, utilities, marine insurance may seem baby steps – but we are getting there.
cuts, which supported the dol- when they notice a pattern. The reason The reason To support sustainable finance, IFSCA said on 27 September it
lar. St. Louis Fed president “Banks do not track cardholders indi-  55 day interest free credit period Rewards: Used 2.74 lakh reward points will waive the filing fees for the first 10 ESG funds filed by registered
Alberto Musalem said that it vidually. When the bank approves a  Relatively low forex charge accumulated on the HDFC cards to book 2 SQ fund management entities at GIFT-IFSC. A statement said one of
may be appropriate to pause card, they put the cardholder in a certain  Rewards an added bonus; use them for Suites for return flights to Singapore the fund management entities has already availed the incentive.
interest-rate cuts as soon as portfolio based on their income, spend- Cleartrip, Uber vouchers Prevent greenwashing
this month, while his San ing capacity and types of spends they are While these moves mark significant progress towards aligning
Francisco counterpart Mary likely to make. Based on these factors, fund flows with sustainability goals, the journey is fraught with
PARAS JAIN/MINT
Daly said there’s no sense of the bank develops a model and when a challenges. Globally, even as the AUM of sustainability labelled
urgency to lower interest cardholder starts making high-value doesn’t mean the bank won’t ever on the transactions and, in some cases, To avoid this, better get a business funds has been touching new highs, the pace of growth has moder-
rates. payments that don’t fit this model, they enquire about them. cancel the all accumulated rewards. credit card for commercial payments. ated. Though Europe and other non-US markets have witnessed
Chicago Fed president Aus- get suspicious,” he explained. On the other hand, high spending on In March this year, Axis Bank blocked Business cards on offer growth in ESG investing, in the US, the concept has become politi-
tan Goolsbee said he expects An example is when business owners utilities, fuel, offline points of sale, and reward redemption of several users on Business cards are different from cor- cised and is facing debates over its effectiveness.
interest rates to be “a fair bit started paying power bills, running into travel are almost always scrutinised by the suspicion of personal cards being porate cards. Corporate cards are given It is important to maintain credibility by preventing greenwash-
lower” a year from now. several lakhs of rupees, of their factories banks, especially when they suspect that used for business spends. In the email by multinational companies to employ- ing, in which entities only seem environmentally friendly but in
“It’s clear from Fed com- with their personal credit cards. expenses are being maximised to claim sent to cardholders, the bank said, “...a ees for expenses specific to the job. For reality are not. Ensuring the regulatory framework has robust safe-
ments last week that officials, “A family’s power bills are unlikely to benefits and rewards. Even when pattern of nonpersonal usage of your instance, to book flights for business guards backed by enforcement measures is necessary.
excluding Goolsbee, are wor- cross ₹20,000 in a month, so anything smaller business spends are done across credit cards has been observed for the trips or pay for meals with clients. The Tracking the end use of funds may be simpler for green bonds
ried about sticky inflation and beyond that is an immediate red flag for different merchants and they total up to transactions undertaken by you with the liability in this case is with the company. as they are often tied to specific projects. ESG funds, however, usu-
therefore preparing the mar- banks,” said Sumanta Mandal, founder exceed the cardholder’s income month following merchants… We request you Business cards are personal credit ally invest in equity, and assessing how the investee companies
kets for a pause,” Brown of Technofino. “As a result of this mis- after month, banks can investigate. to reply with invoices/evidence, if you cards for business expenses. These are adopt sustainability can only be done from a broader evaluation of
Brothers Harriman & Co. strat- use, most banks have either completely “One-off smaller amounts don’t mat- wish to establish that the transactions issued on the individual's name and per- their financial and ESG reporting.
egists including Win Thin exempted utilities from earning rewards ter but when the spends start running undertaken by you with the above-men- manent account number (PAN) and not Investors can take heart from Sebi’s mandate of obtaining assur-
wrote in a note. on credit cards or where allowed, they into crores or several lakhs, it becomes a tioned merchant were only for your per- on the company's PAN. These are typi- ance for the core ESG parameters starting with the top 150 listed
Traders ramped up expecta- have imposed a fee on payments made problem as the bank is essentially sonal expenses and purposes.” cally given to owners of sole proprietors entities from FY24. Adopting uniform taxonomy and strengthen-
tions for a rate cut this month beyond a certain threshold, which is underwriting unsecured loans and In extreme cases, banks can also close or directors/founders of companies. ing the granularity of disclosures by ESG funds on the rating meth-
to 80% after a mixed employ- typically ₹50,000 per month.” hence taking credit exposure. Also, the card. Mandal said American Express odology can further deepen trust.
ment report on Friday. The consequences there is the cost of rewards in such big- is the most stringent. “Amex asks for ESG investing matters to India, where both climate change and
They’re now watching “When you pay a business expense ticket transactions,” said Awtaney. income proof, tax returns and on finding Scan the QR social inequity can have disastrous consequences, given the sheer
November inflation data with your personal credit card, you have Banks take action by demanding satisfactory proof that the cardholder code to read size of the population. ESG funds could well accelerate the transi-
release this week with Fed violated the bank’s MITC,” Mandal said. proof of the payments suspected to be was manufacturing spends for rewards, an extended tion to sustainability, elevating it from a trend to the new normal.
speakers in a blackout period There haven’t been instances of business transactions. If the cardholder it closes the account and bars the card- version of this Ranjith Krishnan is a sustainability consultant based in Thane
before the central bank’s 18 banks scrutinising expenses in the range fails to establish the payments were per- holder from applying for an Amex card story. and Usha Ganapathy Subramanian is a practising company secre-
December decision. of ₹5,000 to ₹10,000. However, that sonal, banks repeal the rewards earned for a couple of years,” he said. tary in Chennai.

Returns on my investments Is it possible to sell property without PAN?

Building a portfolio is a complex exercise, and it has to be maintained too. A person’s portfolio holds different types of assets based ISTOCKPHOTO
on her financial goals, and each asset class gives different types of returns, which is why a portfolio must have an ideal mix of Harshal Bhuta deductees without a PAN.
financial products. One must also keep in mind the volatility risk of the asset class, liquidity, lock-in rules and taxation. Here's a look Without a PAN, you will nei-
at how four commonly used asset types—equity, cash, gold and fixed income—have done in different periods.
My sister and I inherited a ther be able to file your income
property from our mother tax return in India nor claim a
Returns (in %) in 2020. I am a US citizen refund of any excess TDS the

12.3 0 Equity (Sensex) Cash (liquid fund)

with an Overseas Citizen-
ship of India (OCI) card,
buyer may have deducted.
This could lead to a significant
The return that Gold Fixed income (fixed deposit) while my sister lives in loss if the actual tax liability is
India. Both of us are now lower than the TDS amount.
s given
21.06 Sensex ha selling the property to an Also, not having a PAN could
ar
over a 3-ye Indian. The buyer has cause complications in the
17.91 requested my PAN details future, particularly if there is a
period to d ed u ct TDS ( ta x reopening of the assessment,
15.59 14.91
13.67 deducted at source). How- as you may face practical chal-
12.3 ever, I do not have a PAN in lenges in claiming the TDS
11.12
9.86 India. What are the conse- ASK MINT amount.) deducted in the transaction.
8.5 quences of not having PAN m TA X AT I O N However, if you do not have Therefore, it is strongly rec-
7.18 6.8 6.16 6.25 6.21 for this transaction? a PAN, the buyer is obligated ommended that you obtain a
5.1 5.13 —Name withheld on request to deduct tax at the higher of PAN to avoid potential losses.
required to deduct the corre- the prescribed rates —20% as Harshal Bhuta is partner at
The property in question sponding tax amount when per Section 206AA of the P. R. Bhuta & Co. Chartered
qualifies as a long-term capital making the payment of sale Income Tax Act, 1961, which is Accountants
asset. The sale of such immov- consideration to you. (In prac- assumed to include both sur-
able property in India by non- tice, in the absence of a lower/ charge and education cess. Do you have a personal
1 YEAR 3 YEARS 5 YEARS 10 YEARS residents is now subject to a nil tax deduction certificate After deducting TDS, the finance query? Send in your
tax of 12.5% (plus surcharge from the tax officer, the buyer buyer will provide a transac- queries at
Data as on 06 December 2024. Equity is the benchmark Sensex return (price); cash refers to the average return for liquid funds category as
and cess) on the capital gains, will deduct tax based on the tion-based report (instead of [email protected]
defined by Valueresearchonline; gold refers to domestic gold prices available on Valueresearchonline; and fixed income is historic SBI fixed
and get them answered by
deposit rates. All returns are annualized. with no benefit of indexation. full sale consideration, rather Form 16A) detailing the trans-
industry experts.
SATISH KUMAR/MINT Source: BSE, SBI, Value Research Consequently, the buyer is than just the capital gains action for non-resident
12 TUESDAY, 10 DECEMBER 2024
NEW DELHI VIEWS LIVEMINT.COM

OUR VIEW THEIR VIEW

PTI

Trump’s victory calls upon us to

reshape our globalization game
India should let in Chinese FDI and technology to make the most of its China-plus-one opportunity

hand, the EU finds its eastern borders only alternative to China is India. But it
unsettled in Ukraine and is forced to is also clear that India is not ready yet in
support America’s anti-China stance. terms of labour skills or technology to
So, how do these geo-economic reali- replace Chinese exports to the US. The
ties affect India? The first takeaway is next best strategy is to attract foreign
the increasing role of economics in direct investment (FDI) to India.
determining international tensions and As the Economic Survey noted, it
even conflicts. Consider the Ukraine might be time to consider Chinese FDI
issue. When the Ukraine War started in in India with all the necessary security
MANOJ PANT early 2022, a major worry was the dis- exclusions. I have written extensively in
is visiting professor, Shiv Nadar University ruption in world supplies of food grain, these columns that FDI and trade are
as Ukraine and Russia account for two sides of the same coin. FDI, in fact,
almost 30% of world exports. The Rus- tends to promote trade in the long run.
sians were quickly persuaded by all In the case of Apple, its entry to India

Malhotra has his task cut

countries not to block Ukrainian had to be facilitated by allowing a Chi-
exports, as that was in nobody’s interest. nese investor whose parts were critical

U
S President-elect Donald Trump Similarly, the US embargo of Russian to the final assembly of the iPhone.
is now firmly set at the centre of hydrocarbon exports allowed excep- On the one hand, India worries about
the country’s polity, with control tions for crude oil so long as its export its burgeoning trade deficit with China,

out as RBI’s next leader on the Senate, House of Representa-

tives and judiciary. During his election
campaign, he announced some radical
measures on immigration and trade
price did not exceed $60 per barrel.
This was greatly beneficial to Russia’s
largest trade partner, the EU, while
India was able to build a good stockpile
but is unwilling to allow Chinese com-
panies to produce here. At the same
time, whenever it negotiates a free trade
agreement (FTA), its primary concern is
relations. Importantly, with an anti- of oil for domestic inflation control. over Chinese shipments sneaking in via
China hawk Marco Rubio as secretary of Finally, despite Israeli Prime Minister that route. We know that FDI (which
As RBI governor-designate Sanjay Malhotra moves from North Block to Mint Street, he will state, Trump might actually proceed on Benjamin Netanyahu’s resolve to keep entails setting up or acquiring produc-
his China agenda. There is no doubt the Gaza War going till the Hamas was ing units in any country) does not exit
need to tread a fine line on monetary-fiscal policy coordination in favour of India’s economy that international relations and the wiped out, he was asked by its principal quickly. Investors can’t pick up and take
global geo-economic order are in for ally, the US, to leave Iran’s oil depots their factories away. Xiaomi products
a shake-up. and nuclear facilities alone in any retali- are everywhere (phones, air purifiers,
A separate but not unrelated develop- ation to Iranian missile attacks. fridges) anyway. How would FDI hurt?

O
n Monday, we finally got the fiscal policy coordination. At the Southeast ment in recent weeks is the emerging How does this impact India? All indi- As far as India is concerned, tradi-
news that every Indian with Asian central banks forum earlier this year, Das thaw in India-China border relations cations are that post-covid pent-up tional exports like oil, jewellery,
and a return to the situation that pre- demand is winding down. In addition, machine tools, etc, are unlikely to drive
even a passing interest in the said, “India’s coordinated policy response in the vailed before the Galwan clash between personal consumption financed by lib- an export boom, which is more likely to
economy had been waiting for. face of a series of adverse shocks can be a good the militaries of the two countries in eral bank loans (one striking example of be led by electronic products. Inciden-
Ending weeks of speculation template for the future. While monetary policy 2020. As observers have rightly noted, which is real estate) is now also winding tally, China’s principal exports are elec-
over whether Shaktikanta Das worked on anchoring inflation expectations this thaw is a consequence of China’s down. There is a limit to how long gov- tronics and office machines.
would be given an extension of an already and quelling demand-pull pressures, supply declining economic fortunes in the last ernment expenditure can keep the A China-plus-one strategy is India’s
one year, strained relations with the US economy going. One silver lining for best bet in the next few years. But this
extended term, the government announced side interventions by the government alleviated in the last few years and a desire to not India, though, is the export growth of cannot work on Apple exports alone. A
that revenue secretary Sanjay Malhotra will supply-side pressures and moderated cost-push fight too many external battles at this mainly electronic items, as a few com- more broad-based strategy would be to
take over as the next governor of the Reserve inflation.” This is sound advice for such circum- point in time. One thing is clear. Now panies such as Apple have chosen to let Chinese technology in for some
Bank of India (RBI). This brings the curtains stances; both policy levers must act in unison. that Trump will be firmly in the saddle, diversify their supply chains away from time. This means letting in Chinese FDI.
down on an eventful term under Governor Das, At other times, though, RBI has the onerous job come 20 January, China’s economic China. Regardless of who is president of Whatever the US leader says about
relations with the US and EU will not the US, its best inflation control strategy tariffs and domestic production, Ameri-
whose time at the central bank’s helm was of limiting potential damage from fiscal policy, improve much for at least the coming has been to import cheap manufactured cans wouldn’t want their cheap imports
marked by many challenges, such as guiding especially if it threatens to be inflationary, if year. Technology theft bothers the US goods from China. No US president can to stop, the Chinese need to keep their
the economy through the pandemic, new kinds needed, by “withdrawing the punch bowl just as the most, as it has been running the change this strategy without risking export engine going and Indians need
of inflationary pressures and various global the party gets going,” in the words of William largest trade deficits for the last decade higher domestic retail prices. 8-9% GDP growth. It would make little
uncertainties. RBI was also at the forefront of McChesney Martin, who led the US Fed for or, while depending on technology for a Here is where India comes in. In sense to let politics get in the way of an
large chunk of its exports. On the other terms of large assembly stations, the economic ‘triumvirate.’
innovation, whether in the field of digital almost two decades. This isn’t always easy. The
finance or with an e-rupee. Malhotra steps into fiscal dominance of monetary policy means
the shoes of someone who came into RBI as a much of RBI’s work is circumscribed by the
relative newbie (a history student with a long Centre’s decisions. Given their different time
civil-service career), but soon went on to prove horizons and the vulnerability of governments
himself as more than equal to the task. No to fickle electorates, differences with the cen-
doubt, the governor-designate’s training in tral bank are par for the course. Not only in www.livemint.com New Delhi, Mumbai, Bengaluru, Kolkata, Chennai, Ahmedabad, Hyderabad, Chandigarh*, Pune* Wednesday, December 10, 2014 Vol.8 No.294 `4.00 in Delhi-NCR/`5.00 outside Delhi-NCR 32 PAGES

information technology, together with his long India, but the world over. Successful central Q&A: Cornell’s Eswar Prasad on
the next budget >8
CORPORATE: Uber faces regulatory action in
Thailand, Spain, Vietnam >12

years as a bureaucrat, will help him make the bank governors are those who know how to twitter.com/
livemint
facebook.com/
mint.live
plus.google.com/
+livemint
pinterest.com/
livemint/
INDUSTRY: Commercial vehicle, car sales rise in
November >10
ENVIRONMENT: 2014 is the year of the frog >13

transition from North Block to Mint Street. tread the fine line between cooperating with SENSEX 27,797.01 æ 322.39 NIFTY 8,340.70 æ 97.55 DOLLAR `61.88 Æ `0.04 EURO `76.52 Æ `059 GOLD `26,440 Æ `215 OIL $66.77 Æ $0.56

The power of population

FRESH FUNDING
Essar-Rosneft QUICK EDIT
SELL-OFF PRESSURE
Flipkart in The Sensex fell for the third consecutive session on Tuesday and the rupee deal may be China

Unlike Governor Das, who had the advantage the Centre when the situation requires it and signed during bubble
weakened for a second straight session, after a sell-off in China sparked
concerns about the sturdiness of emerging markets. The Sensex closed
1.2%, or 322.39 points, lower at 27,797.01 points on Tuesday.
Putin’s visit G
talks to raise
ravity is a potent force
Sensex in the financial mar-
See pages 4, 27 kets. Chinese stocks went
28,200 B Y P. R . S A N J A I up vertiginously after 20

is indefinitely greater
D OUGL AS B USVINE November despite growing
K AT YA G O LU B KO VA signs of an economic slow-

of a seasoned deputy governor in charge of speaking truth to power at other times. Sanjay up to $1 bn
···························· down, a real estate bust and
28,100 MUMBAI/NEW DELHI/MOSCOW
rising debt. The surprise

28,000
28,083.33
O ne of the units of conglom-
erate Essar Group and Rus-
sia’s Rosneft, the world’s largest
decision to cut interest rates
was an incentive for lever-
aged traders rather than a
publicly traded petroleum com- stimulus for the real econ-
Three new investors third biggest economy.
27,900
pany, may have signed a large omy. In short, China was
are seen participating The latest fund infusion into
Flipkart will give the company
crude purchase agreement that
could be announced in the next
experiencing a stock market
bubble.

monetary policy, Michael Patra, and an experi- Malhotra too must frame policy with the long-
in the latest round that

than the power in the

more fuel to pursue its aggres- few days, during Russian Presi- The sharp decline in Chi-
is expected to be closed sive market share acquisition 27,800 dent Vladimir Putin’s India visit, nese equities on Tuesday
strategy. The addition of deep- according to three people close needs to be seen against
within the next 45 days pocketed new investors also 27,797.01 to the development. this backdrop. Indian shares
offers external validation to the 27,700 Rosneft is majority owned by were also hit. This should
9.15am 3.30pm
BY M IHIR DALAL company’s largest investors the state with BP holding an be a good reminder that
S HRUTIKA V ERMA Tiger Global and Naspers of under 20% stake and public financial markets cannot
···························· their large bets on Flipkart. Rupee shareholders around 10%. run ahead of the real econ-
BENGALURU/NEW DELHI Until now, Flipkart has The deal could be worth $500 omy for long. But it is also

enced Monetary Policy Committee (MPC) when term interests of the country in mind. I
61.84
ndia’s largest e-commerce received nearly $1.8 billion in Inverse scale million a year and span multiple worth remembering that
firm Flipkart is in advanced capital from more than 10 inves- years, the people said. Indian shares have barely

earth to produce
talks to raise between $700 tors (Flipkart has a few other None of the three wanted to budged in the past three
million and $1 billion in fresh investors because of stock-based 61.86 be identified. weeks compared with the
funds, barely four months after mergers). Some of the existing 61.89 Details of price per oil barrel, 25% rise in Chinese share
the company received a record investors, including Tiger Global quantity and validity of this values.
$1 billion, according to three Management and Naspers are 61.88 agreement were not immedi- It is no surprise that glo-
61.88
people familiar with the matter. likely to participate in the latest ately known, although a fourth bal oil prices have gone

he took over, the new governor will have to Kristalina Georgieva, managing director of
Flipkart is likely to receive a round, though these two inves- person familiar with the matter down even more. A sharp
so-called pre-money valuation tors won’t be coughing up a said, speaking on condition of loss of economic momen-
of $11-12 billion in the latest large part of the new funds 61.9 anonymity, that it was a little tum in China will add to
round, said the three people, all unlike the July round, the three under $60 a barrel. Brent crude global deflationary pres-
of whom spoke on condition of people cited above said. Other was trading at $66.77 a barrel at sures. India will benefit

subsistence for man.

anonymity because the discus- investors in Flipkart include 61.92 4.18pm on the London-based from lower commodity
sions aren’t public. Pre-money Government of Singapore 9am 5pm ICE Futures Europe exchange on prices but will find it
refers to the value of the com- Investment Corp., the city-state’s tougher to export its goods.
Source: Bloomberg
pany excluding the cash from sovereign wealth fund, DST Glo- TURN TO PAGE 4®
MOHSIN SHAIKH/MINT

learn the ropes in a very short period, given his the International Monetary Fund, put it well:
the latest round. Flipkart was bal, Accel Partners, Dragoneer
valued at $6 billion when it Investment Group, Iconiq Capi-
received $1 billion from inves- tal and Vulcan Capital.
INSIDE
tors in July. Flipkart said on 29 July that it
At least three new investors raised $1 billion, roughly half of
will participate in the latest which together came from Tiger
round, which is expected to be Global and Naspers, in a financ-
closed within the next 45 days, ing round that was the largest-
two of the three people cited ever by an Indian start-up and

last-minute appointment, and with a relatively “Central bank independence matters for price
above said. Qatar Investment among the largest-ever by any
Authority, the sovereign wealth Internet start-up globally.
fund of Qatar, is one of the new Friends Sachin Bansal and
investors Flipkart is in discus- Binny Bansal started Flipkart in
sions with, the two people said. 2007 as an online book seller,
Flipkart declined to comment. modelling the site on their
The Qatar Investment Authority, former employer Amazon.com
which has also invested in the
US-based cab booking service
Inc., the world’s largest online
retailer. Over time, Flipkart
What’s Raju

new team. Patra is due to retire and is expected stability—and price stability matters for consist-
up to?
THOMAS MA LTHUS
Uber, didn’t respond to an email added electronics, apparel and
seeking comment. Mint couldn’t other products on its site and
verify the names of the other quickly became the country’s
new investors Flipkart is talking
to.
More than $3 billion has
largest and most valuable
e-commerce firm.
Flipkart is currently among
T homas Piketty’s bestsell-
ing Capital in the Twen-
ty-First Century is one of his
already been invested in e-com- the most sought-after private favourite books, and he has
merce this year, after a two-year companies globally and is con- been recommending it to
period when most venture capi- sidered by some analysts as the friends. He attends wed-

to step down shortly, while the MPC was recon- ent long-term growth. Risks of political inter-
tal firms steered clear of online next big online retail business dings of friends’ children
retailers. Flipkart and its rivals— after China’s Alibaba, which and was present at the wed-
Snapdeal and Amazon India— went public earlier this year and ding of film director Ram
are topping up their war chests, is now valued at more than $250 Gopal Varma’s daughter.
allowing them the flexibility to billion. His three best friends from
buy attractive start-ups, offer Flipkart Pvt. Ltd, Flipkart’s college still visit him at
deeper discounts to buyers and holding entity registered in Sin- home almost every day, and
increase their logistics reach for gapore, posted a loss of `644.37 he doesn’t say no to the
a bigger slice of the fast-growing crore on revenue of `1,163.1 occasional movie at the

stituted less than three months ago. At least ference in banks’ decision making and person-
e-commerce market in Asia’s crore in 2012-13, according to local theatre.
documents filed with the Singa- A day after an economic
NOTE TO READERS pore government. The firm is yet
to file its latest financial results.
offences court sentenced
him to jail for six months,
The Media Marketing Initiative on The firm is involved in a bruis- and two weeks ahead of
Page 11 is the equivalent of a paid- ing marketshare battle with role D-Day, when a CBI court
for advertisement, and no Mint model Amazon as well as local will rule on the big case
journalists were involved in rival Snapdeal, which raised against him—an over $1.5
creating it. Readers would do well $627 million from Japan’s Soft- billion fraud at Satyam

Malhotra has his task cut out for him. Governor nel appointments are rising. Governments and
to treat it as an advertisement. Bank Group in October. Earlier Computer—Mint takes a
this year, Amazon chief execu- look at the life of B. Ramal-
tive Jeff Bezos promised to invest inga Raju.
Mint is also available for R8 with $2 billion in India over time. See pages 14-15
Hindustan Times in Delhi-NCR only
[email protected]

Das has often spoken of the value of monetary- central bankers must resist these pressures.”

MY VIEW | MUSING MACRO

Demography is destiny: It’s a law that cannot be shaken

icy is being relaxed. Roughly 40% of Singa- In a sign of a reversal, Andhra Pradesh has CE to 1820 CE, the average annual popula- makers who argue that human capital is the
AJIT RANADE poreans are immigrants and 39% are non- scrapped a 30-year-old law barring those tion growth rate was 0.29% and annual per ultimate resource critical for economic
citizens. The current policy seems to aim with three or more children from contesting capita income growth was 0.12%, so that growth. Population growth, which parallels
simply to stabilize the population rather local elections. It has a TFR of 1.6 and is wor- overall economic growth (the sum of the two) growth in productivity, wages and family
than raise or lower the TFR. ried about an ageing society. Many other was 0.41%. But in past two centuries, this incomes, is required. India’s predicament is
Just like Singapore, almost all major southern states will follow suit in relaxing relationship has broken. Per capita GDP in that despite being one of the fastest growing

E
arlier this year, Singapore’s govern- countries have tried social engineering and the norm. Echoing this sentiment, RSS chief England has risen 11-fold since 1820. economies, its per capita income at around
ment noted with alarm that the coun- population control. As per the United Mohan Bhagwat recently Between 1820 and 2010, $3,000 is the lowest in the G20. In the early
try’s total fertility rate (TFR) in 2023 Nations 2021 World Population Policies said that India should aim the average population 1990s, the economies of India and China
had fallen to a record 0.97. TFR is the aver- report, nearly two-thirds of all countries had for a TFR of 3. With a lower Policies must growth was 0.57%, whereas were of comparable size and shared a similar
age number of children born to a woman policies on fertility: 69 governments to TFR, “a society can gradu- per capita income was ris- rank by per capita income. Three decades
during her lifetime. For several years, it has reduce, 55 countries to increase and 19 to ally fade away on its own,” aim not to ing at 1.28%. During this later, China’s economy is six times bigger,
been falling, while the share of the elderly, maintain it. Half the countries trying to he said. That may be too phase, agricultural output and its per capita GDP rank is 70 compared
those above 65 years, has been rising. From reduce TFR are developing, implying that alarmist, but clearly the
control fertility outpaced population, dis- to India’s 141. Growth in China has been

is a Pune-based economist
11.7% in 2013, it hit 19.1% in 2023 and is
expected to reach 24.1 % in 2030. In Singa-
they think that high TFR hurts economic
development.
sentiment in India is shift-
ing to tackling a low TFR,
but promote proving the gloomy food
scarcity forecast of Malthus.
more inclusive than India’s.
Demographic changes are driven by mul-
pore, the pendulum of population policy has
swung from one extreme to the other. In
India too has traditionally subscribed to
that Malthusian view. In 2022, a private
not high fertility.
The actual relationship
human capital, Technological innova-
tion seemed to be winning
tiple factors. Declining mortality and rising
fertility both lead to population growth, but
1966, a Family Planning and Population member’s bill was introduced in Parliament, between population and innovation the race against resource have opposite effects on economic growth.
Board was set up to encourage birth control. proposing incentives for limiting children in economic growth has not scarcity. But Malthus fol- Rising family incomes tend to increase the
There was a ‘Stop-at-Two” programme, with a family to two. More than six states have the been settled. Does high and prosperity lowers have not given up. opportunity cost of raising children, leading
disincentives for families having more than two-child norm as mandatory for panchayat population growth cause Paul Ehrlich, a contempo- to a lower TFR. There is a high correlation
two children. Sterilization was rewarded. By members. Policies to limit family size are growth to slow down or the rary Malthusian, and Julian between female education and incomes on
the early 1980s, the government became being pursued in India even as nearly half of reverse? As per the research of Angus Mad- Simon had a famous bet on commodity pri- one hand and family size on the other.
pro-natalist, launching a ‘Have-three-or- all states have reached a TFR of 2.1 or below. dison, continued as the Maddison Project ces in 1980, in which the latter said that Controlling TFR is doomed to fail. We
more’ campaign in 1987. Its population con- That is the ‘replacement rate’ that leads to a after his death in 2010, there is strong evi- “brains would solve the mineral scarcity need policies that raise per capita income,
trol policies had been too successful and stable population. It is a little over two prog- dence that the long-term link between popu- problem.” Simon won the bet, as by 1990, the enhance human capital and encourage tech-
needed reversing. But despite baby-bonus eny from two parents to account for factors lation and economic growth was stable for world’s population had risen by nearly one nological innovation; and state policies that
schemes and cash incentives, the fertility like mortality, infertility and often also a about 1,000 years before the industrial revo- billion but commodity prices had fallen. are immigrant friendly and compensate for
rate keeps falling. Hence, immigration pol- gender ratio in favour of males. lution. For instance, in England from 1,000 Such techno optimism still drives policy- inter-state TFR differentials.
LIVEMINT.COM VIEWS TUESDAY, 10 DECEMBER 2024
NEW DELHI 13

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

Why Bidenomics did not deliver The HPV vaccine saves lives:
The US must not mess with it
in spite of its working class focus Anti-vaxxers in charge of public health might endanger women

Joe Biden’s policies failed to recognize the changed nature of the US economy and so they were unable to achieve their aims

AP

LISA JARVIS
is a Bloomberg Opinion columnist covering
biotech, health care and the pharmaceutical
industry.
DANI RODRIK
is president of the International Economic
Association and author of ‘Straight Talk on
Trade: Ideas for a Sane World Economy’

N
ew research has again shown the
enormous value of the HPV vac-
cine, which protects against the

A
s US president, Joe Biden charted a virus responsible for more than 90% of cer- Data shows that the HPV vaccine is playing
new economic path for the Demo- vical cancer cases. Studies had already a useful role in women’s health ISTOCKPHOTO
crats by siding unabashedly with shown that the vaccine dramatically redu-
the working class and introducing a ces rates of HPV infections and cervical affected by covid shutdowns, but getting
wide range of industrial policies cancer. Now comes evidence of what has HPV rates back to pre-pandemic levels—
to reinvigorate US manufacturing, long been suspected: The vaccine also saves let alone to officials’ goal of 80% of adoles-
reshore supply chains and promote the green tran- lives. This message needs reinforcing in the cents vaccinated by 2030—has been a slog.
sition. Most of these new policies made economic US, where vaccination rates continue to lag Efforts have been focused on addressing
sense, and like many other progressives, I thought behind pre-pandemic levels — which were disparities in coverage, such as improving
they made political sense as well. What, then, already behind health officials’ targets for access and uptake among people living in
accounts for Vice-President Kamala Harris’s population-level coverage. Officials will rural areas or without insurance, helping
disappointing electoral performance, especially now contend with a new administration paediatricians make more effective pitches
with working-class voters? that is stacking US public health agencies for vaccination, and clearing barriers to
Donald Trump’s appeal, like that of right-wing with leadership like Robert F. Kennedy Jr, starting the shots during early adolescence
ethno-nationalists elsewhere, owes much to rising who is well known for his scepticism of vac- when protection can be achieved with two
levels of economic insecurity, which many regard cines, including the HPV shot. rather than three doses.
as the result of deregulation, increased corporate In a letter published in JAMA, research- Yet, there’s reason to worry all this work
power, globalization, deindustrialization and auto- ers narrowed in on cervical cancer deaths could be unravelled by President-elect
mation. As the traditional champions of the under- among women who were younger than 25 Donald Trump’s picks to lead public health
dog, centre-left parties could have benefited from between 2016 and 2021—the first group agencies. The HPV vaccine is among those
these developments. But they had come to speak with widespread uptake of the vaccine as aggressively targeted by Children’s Health
more for educated professional elites, and they adolescents following its approval in 2006. Defense, a non-profit known for its anti-
were slow to alter course. Faced with the growing While cervical cancer deaths among young vaccine rhetoric and misinformation. It
perception that they’d abandoned their working- women had been steadily dropping for was founded by Kennedy, Trump’s nomi-
class roots, Biden’s move toward economic popu- years, thanks to screening, researchers nee to lead the Department of Health and
lism seemed like the right strategy. political competition with China, it paid too little ties to more sustainable ones. Now we need a simi- found a sharper decline among this group, Human Services. Kennedy has been
One interpretation of Trump’s re-election is that attention to the changing structure of the US econ- lar push for labour-friendly technology policies to leading to 26 fewer deaths over that period. involved in multiple lawsuits related to the
economic populism was a mistake, implying that omy and the nature of its new working class. In an promote innovation that enables workers with less The number may sound small. But con- HPV vaccine, including one filed in 2022,
the Democratic Party should have moved more economy where only 8% of workers are factory than a college education to perform more complex sider that the vaccine hasn’t been around claiming Merck’s Gardasil has caused inju-
forcefully to the centre-ground instead. But employed, a policy that promises to restore the tasks in care and other personal services. By devel- long enough for researchers to compre- ries to teens. Numerous studies have
Harris’s apparently fruitless efforts to woo middle- middle class by bringing manufacturing back oping new visions of economic specialization and hensively assess its long-term benefits. shown the side effects are mild
of-the-road Republican voters was not much of a home is not only unrealistic; it also rings hollow, mobilizing the needed resources, cross-sectoral Most women are diagnosed with cervical Meanwhile, Dave Weldon, Trump’s pick
success either. because it does not align with workers’ aspirations coalitions, often led by public agencies, can foster cancer when they are older—typically in to head the Centers for Disease Control and
There are at least three other possibilities. The and everyday experiences. local job creation in regions that have been scarred their mid-30s to mid-50s. That means we Prevention, has been embraced by anti-
first is that Biden’s strategy did work, but not The typical US worker today is no longer rolling by long-term unemployment. won’t see the larger impact of vaccination vaccine groups. Most of the former repre-
enough to win the election. Inflation and the steel or assembling cars. Rather, s/he is a long-term It is worth noting that in one poll taken before until five to 10 years from now, says Ashish sentative’s problematic proposals while in
increased cost of living produced a generalized care provider, food preparer or someone running the election, Hispanic voters in Texas said that Deshmukh, a professor at the Medical Uni- Congress focused on the debunked link
backlash against governments everywhere. A an independent small business (perhaps via gig their biggest problem with Democrats is that it is versity of South Carolina who led the study. between MMR vaccination and autism. But
widely circulated chart in the Financial Times work). Addressing the problems of low pay and “the party of welfare benefits for people who don’t Cervical cancer isn’t the only disease he did criticize the HPV vaccine as lacking
shows that incumbents have fallen short of their precarious working conditions in such services work.” While social transfers to the poor—those linked to HPV, and women aren’t the only long-term safety data. In fact, at the time of
previous share of the vote in every election in requires a different strategy than manufacturing who either cannot work or face temporary unem- ones affected. The virus is also implicated its approval, Gardasil had been tested in
2024. To Bidenomics’ credit, Democrats did incentives or import tariffs. Class solidarity also ployment—are a necessary and integral part of the in oral, anal, vaginal, vulvar and penile can- thousands of women. They were followed
much better by comparison. needs to be built differently than through appeals contemporary welfare state, parties of the left can- cers. Imagine if vaccination against HPV for up to four years, long past the time when
The second possibility is that it takes time for to unions or bargaining power. Biden had the right not allow themselves to be defined exclusively in (eventually allowed the US to cut the 4,000 a safety issue would likely emerge — some-
new policies to show effect and result in new politi- idea, in this view, but failed to hit the right targets. such terms. They need to be seen as advocates for annual deaths from cervical cancer to zero thing Weldon, a physician, should know.
cal coalitions. Bidenomics is still new, and it faced Our new economic structure requires a 21st-cen- those who want to contribute to their community —or dramatically reduce or even eliminate The new leadership combo could under-
the daunting challenge of dislodging more than tury version of ‘industrial policy’ that focuses on through decent work, and as facilitators for those the nearly 38,000 HPV-related cancers mine vaccine access and uptake (the num-
three decades of voter experience with Democratic creating good jobs in services. Such a strategy who face obstacles in doing so. diagnosed in the country each year. ber of people vaccinated with a certain
centrism. Perhaps it was too much to expect entails organizational and technological innova- Reconnecting the Democratic Party with its Both are achievable goals, but it means dose in a certain time period). Beyond the
Biden’s pro-worker rhetoric and strong manufac- tions to upgrade work in low-pay activities and roots must start with the recognition that today’s propping up vaccination rates. Tweens are reasonable worry that Kennedy might
turing construction numbers to overcome the improve the provision of inputs such as digital working class has changed and has different first eligible for the shots at age 9, yet publicly question the benefits or safety of
cleavages that have emerged (and deepened) since tools, customized training, and credit. One can find needs. The provision of social insurance and recent data from the Centers for Disease vaccines, the CDC also plays a significant
president Bill Clinton’s administration. It takes local and national examples of such initiatives, but countervailing power against business interests Control and Prevention show the number role by providing recommendations on vax
more than a few years of well-designed policy to they remain small-scale and largely incidental to will always remain important elements of the pro- of 13- to 17-year-olds who had completed schedules, which influences insurance
engineer a political realignment. federal programmes. gressive left. But these goals must be augmented the series of shots (two doses if initiated by coverage. The HPV vaccine prevents
The third, and least discussed, possibility is that New technologies that help workers rather than with a revamped set of ‘good jobs’ policies that age 14 or three doses if initiated at 15 or unnecessary suffering and deaths from
Bidenomics was economic populism of the wrong displace them are critical to this effort. Green neither fetishize manufacturing nor view it older) dipped to 61.4% in 2023 from 62.6% HPV-related cancers. What a colossal
kind. By focusing on manufacturing, old-style industrial policies show that innovation can through the lens of geopolitical competition in 2022. Health experts weren’t surprised shame it would be to go backward—at the
union power and worker organizations, and geo- indeed be redirected from carbon-intensive activi- with China. ©2024/PROJECT SYNDICATE that routine vaccination rates were cost of women’s lives. ©BLOOMBERG

MY VIEW | IT MATTERS

Data brokers pose hidden dangers that must be tackled

individually targeted services, they also pose data-sets with details on US military person- against credit reporting agencies that are backing to expand the CFPB’s mandate
SIDDHARTH PAI dangers. Commodifying sensitive data— nel or government employees. This data closely tied to the data broker ecosystem. beyond its current financial scope. Collabo-
such as financial or health records—opens a could be used for blackmail. For instance, the CFPB has issued fines for ration between the CFPB and other agen-
Pandora’s box of ethical, legal and security The US’s lack of comprehensive federal mishandling consumer data and failing to cies, such as the Federal Trade Commission
concerns. There are many risks associated data privacy laws contrasts sharply with address inaccuracies in credit reports. It has (FTC), could create a more comprehensive
with data brokering. Armed with detailed frameworks like the EU’s General Data Pro- also initiated probes of how credit reporting oversight framework. The FTC, which has

I
n the US, a multibillion-dollar industry personal information on us, criminals can tection Regulation (GDPR), which mandates agencies share data with third parties. jurisdiction over unfair business practices,
thrives on an invisible commodity: per- craft sophisticated phishing scams, defraud transparency, consent and While all this marks could complement the CFPB’s efforts by
sonal data. This sector, dominated by data individuals and even steal identities. accountability, giving indi- progress, the CFPB’s reach keeping the data broker industry in check.
brokers, collects, processes and sells vast Beyond personal harm, there are broader viduals significant control Profiles being is limited by existing legis- However, where such regulation might go
amounts of information on individuals, often implications. Unregulated data flows can over their data. In the US, lation, such as the Fair after Donald Trump takes office is unknown.
without their knowledge. It is an opaque eco- exacerbate systemic inequalities. Errors in however, data privacy is hawked without Credit Reporting Act It appears the proposed Department of Gov-
system with far-reaching implications for aggregated data, such as incorrect credit addressed in a fragmented (FCRA), which primarily ernment Efficiency may have the CFPB in its
personal privacy, financial security and information, can unfairly deny individuals manner, with state-level
tight oversight governs the financial cross-hairs (shorturl.at/7U6ol).

is co-founder of Siana Capital, a

national interests. Despite its outsized influ-
ence, the industry remains largely unregu-
access to loans, housing or employment.
These errors often go uncorrected as we
initiatives such as Califor-
nia’s Consumer Privacy
puts not just aspects of data handling.
This leaves a regulatory gap
Whatever course the regulation of data
brokers may take in the US, public aware-
venture fund manager. lated, raising urgent questions about the
need for oversight and consumer protection.
have few accountability mechanisms for
data brokers. Selling personal data to foreign
Act offering piecemeal
solutions. The US needs a
individuals but for non-financial data bro-
kers, which operate with
ness is critical. Consumers must be informed
about the data broker risks and empowered
Data brokers operate as intermediaries, entities can undermine national security. unified regulatory frame- entire countries even fewer constraints. to demand greater control over their per-
aggregating information from sources like For example, foreign adversaries could buy work that addresses trans- The CFPB’s head Rohit sonal information. Advocacy groups, jour-
online browsing histories, credit applica- detailed demographic and psychographic parency, consumer control at grave risk Chopra has just announced nalists and tech companies can play a pivotal
tions, social media interactions and public data to manipulate public opinion, identify and broker accountability. new steps to expand the role in pushing for transparency and
records. This data is packaged into detailed vulnerabilities in government personnel, or The Consumer Finan- FCRA and let his agency accountability. Without regulation, the risks
profiles of individuals with sensitive infor- sow discord through misinformation. cial Protection Bureau (CFPB) has emerged police data brokers (shorturl.at/xovZq). will only multiply, spanning personal harm,
mation such as credit scores, financial his- By analysing behavioural patterns, they as a key player in addressing the darker side While the CFPB’s focus is on financial financial exploitation and threats to national
tory, health conditions and behavioural pat- could craft campaigns to widen societal of data brokerage, particularly in the finan- data, it has the potential to spearhead security. As we grapple with challenges of
terns. These profiles are sold to advertisers, divides, manipulate elections or erode trust cial domain. Established in the aftermath of broader regulatory efforts. Its work in hold- the digital age, reining in the data broker
corporations, political campaigns and some- in institutions—all without any need for the 2008 financial crisis, it is tasked with ing credit reporting agencies accountable industry should be a priority. After all, in the
times foreign entities. While these practices hacking or direct espionage. Consider a sce- safeguarding consumers in the financial ser- could serve as a model for overseeing other hands of the unscrupulous, your data isn’t
enable tailored advertising, marketing and nario where a foreign actor legally purchases vices sector. In recent years, it has acted data brokers. But it would require legislative just a commodity—it can be a weapon.
14 TUESDAY, 10 DECEMBER 2024
NEW DELHI BUSINESS OF LIFE WELLNESS LIVEMINT.COM

ISTOCKPHOTO

Enjoy year-end parties

without social burnout
Keep your social battery
ISTOCKPHOTO

a psychiatrist and founder of Catalysts Clinic

in Thane.
on high charge for year-
end gatherings by setting
firm boundaries, opting
CUES TO WATCH FOR
It is critical to identify signs of a drained social
battery. Physically, you may feel fatigue, head-
aches or tension in the body. Emotionally, irri-
Pre-workout
for quality interactions
and oodles of self-care
tability, impatience or a lack of enthusiasm for
further engagement can set in. Cognitively,
zoning out during conversations or difficulty
supplements:
Aye or nay?
concentrating may signal that it’s time to
recharge.
Divya Naik Unchecked social burnout, over time, can
[email protected] erode self-esteem and make future interactions
feel more daunting. And so, recognizing and
Good quality pre-work supplements

A
s the year draws to a close, there is respecting these signals is key to maintaining
a whirlwind of parties, gatherings emotional health. can help boost your energy to exercise
and social commitments. These Here are a few strategies that can help you
occasions foster a sense of con- navigate the busy season with minimal burnout:
nection and joy, but they also Pulasta Dhar
bear the risk of bringing on emotional and phys- u Solo activities: Engage in activities like [email protected]
ical exhaustion, commonly referred to as “social reading, journaling or watching a favourite

I
battery burnout.” show that allow you to reset emotionally and f you’re a regular gym goer, chances are you consume a pre-
Most of us are familiar with the idea of “burn- mentally. Time spent in nature or with pets also workout supplement. These usually have 150-300mg of caffe-
out” in professional settings. Social exhaustion offers restorative benefits. ine, which serves as a wake-up call to the system to work out.
is just as real and can leave us feeling drained, uMindfulness practices: Mindfulness tech- But consuming that much caffeine is equivalent to three cups of
irritable and overwhelmed during what should niques such as deep breathing, meditation or coffee in a very short time rather than over the course of the day.
be the happiest time of the year. grounding exercises can help regulate stress. The recommended amount of caffeine for adults per day is not
What is social battery? The term serves as a u Physical self-care: Prioritize gentle exer- more than 400mg.
metaphor for the fluctuating reserves of cise, hydration and mindful eating. Avoid over- It is important to know which type of pre-workout powder
energy we bring to social interactions. “It rep- stimulation and ensure sufficient sleep as well. you might want. “Blends generally fall into two categories: stim
resents a combination of emotional, cognitive u Set boundaries: Boundary-setting is vital to and non-stim. Stim, or stimulant pre-workout, contains caffe-
and physiological resources available to an conserving energy. Politely decline invitations ine, while non-stim options claim to provide alertness and
individual during social engagements,” that feel obligatory rather than joyful. focus via one or more nootropic ingredients like taurine, which
explains Komal Kaira, an integrative psycholo- u Focus on quality over quantity: Instead of haven’t been conclusively shown to provide benefits,” states
gist based in Mumbai. attending every event, prioritize meaningful a Time article titled Pre-workout Powders Are Gaining Popular-
Socializing isn’t just about showing up and THE PERSONALITY FACTOR deplete their social battery as their nervous interactions. This reduces stress and makes ity. Do They Work?
talking—it requires effort to read social cues, There are a host of factors that influence how system remains in a constant state of high social engagements feel more fulfilling. There are some advantages to pre-workout supplements. Caf-
manage reactions and empathize with others, quickly someone’s social battery is depleted. alert, scanning for threats even in seemingly u Manage sensory overload: Avoid overstim- feine is a great mood and energy booster, and consuming top
all of which expend energy. As Gurugram-based Personality traits play a key role. Introverts benign settings.” ulating environments when possible. Opt for quality pre-workout powders can help reduce muscle soreness
clinical psychologist Shevantika Nanda notes, often process social interactions deeply, which Environmental factors, such as crowded spa- smaller, quieter gatherings that align with your and fatigue.
“Our social batteries, much like those in devices, can quickly exhaust their emotional reserves. ces, bright lights, or loud music too make social preferences. Set a time limit for larger events Mumbai-based nutritionist Shivali Chauhan recommends fac-
need recharging after depletion.” Neurodivergent individuals or those with social situations particularly exhausting. Physical and prepare mentally beforehand to manage toring in your mental health before you start taking a pre-work-
Meenakshi Atawnia, a trauma-informed anxiety may find socializing more draining due states, such as being sleep-deprived, stressed or expectations. out supplement with caffeine. “It’s smart to avoid it if you have
counselling psychologist and founder of The to heightened sensitivity to external stimuli or unwell can add to the toll. At events like wed- u Cultivate a guilt-free mindset: Many peo- conditions like hypertension, anxiety, caffeine sensitivity or poor
Cognitive Factor in Delhi, adds another perti- the effort involved in masking behaviours to dings in the family, societal expectations can ple view taking time for themselves as selfish. gut health.” She suggests that people experiment with complex
nent point—the quality of social interaction too conform to societal norms. weigh heavily too. Reframing self-care as a form of self-respect can carbs and protein as a fuel to kick start a workout. “Try having just
plays a significant role in how energised or According to Kaira, past trauma also can “This constant need to meet expectations— help overcome this mindset. peanut butter on multigrain toast and your protein shake with
enervated you feel. “Negative or poor-quality make socializing more taxing. “For individuals such as dressing appropriately, maintaining water. And maybe a teaspoon of coffee powder for a little kick,”
interactions can drain your social battery faster with a history of unsafe social interactions, relationships, or attending out of obligation— Divya Naik is an independent writer based in she says.
than multiple positive ones,” she says. hypervigilance during conversations can can drain you out,” says Wilona Annunciation, Mumbai. Read the full article at livemint.com/mint-lounge