Mint 07.06.2023?

https://snapfrom.com/ https://instagramvideodownloader.net/ https://instadl.
app/
MUMBAI, New deLHi, beNGALuru, kOLkAtA, cHeNNAi, AHmedAbAd, HyderAbAd, cHANdiGArH*, PuNe* VOL. 6 NO. 134
Wednesday, June 7, 2023
Adani Group set to revive SAT reverses Brickwork’s

livemint.com Mundra PVC project uP1 licence cancellation uP1
For More ePaper Visit: https://www.fresherwave.com/

https://snapfrom.com/ https://instagramvideodownloader.net/ https://instadl.app/

MUMBAI, NEW DELHI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE* VOL. 6 NO. 134
livemint.com
mint primer QUICK EDIT
The story behind Call

14 FDC drugs ordeal
A Reserve Bank of India (RBI)
being banned panel headed by former deputy
governor B.P. Kanungo has
made recommendations for
BY TAUSEEF SHAHIDI improving the customer service
The government has banned the manufacture, sale and distribution of of banks. One of them is for an
14 fixed dose combination (FDC) drugs, citing “no therapeutic automated call-back feature to
justification”. Mint explains the backstory and the rationale behind be introduced whenever a call
this move: drops midway. Another is for
customers to be provided with
an option on all menus to speak
to an executive. These steps can
provide immense relief to call-
ers who often report such har-
rowing experiences when try-
ing to get their problems solved
at call centres. One is made to go
through an unending list of
menus, but the one needed
often isn’t on them. Connecting
with an executive could simplify
grievance redressal, but the
option isn’t allowed until late in
the call. By the time one does
connect with one, the caller has
already gone through a lot.
What are FDC drugs? What are ‘irrational’ Even so, template answers are
1 What are their risks?
An FDC is a cocktail of active
2 FDCs?
FDCs using a combination for the
offered that add to the frustra-
tion, and, unluckily, if the call
ingredients used in a fixed ratio in first time are deemed “new” drugs disconnects, then one is made
a single pill or syrup. Such and, hence, require prior approval to go through the ordeal all over
combinations can reduce the ‘pill from the Drugs Controller General again. It’s a familiar experience
burden’, improve adherence to of India (DCGI) before being for most, and surprisingly it has
therapy and bring down costs. licensed by the state licensing been left largely to the entities
Thousands of FDC drugs are authorities (SLAs). However, many
to self-monitor. That has not
available in India and have been FDCs were licensed by SLAs
sold for decades. Many FDCs are without prior approval of DCGI, worked. So, it’s good that RBI is
considered safe—for instance, in leading to an influx of drugs with talking about it. These recom-
the treatment of tuberculosis or little evidence on safety and mendations could help make
HIV. However, there are certain efficacy. In 2016, after a panel the experience less of a pain.
combinations that can be found many of these FDCs
pharmacologically incompatible, “irrational”, the government
have abuse potential and could banned 344 FDCs. However, this
lead to antibiotic resistance in the ban was stayed by the Delhi high
population. A drug that has both
acidic and alkaline ingredients
court. The Centre then moved the
Supreme Court against the stay
MINT METRIC
would be ineffective. order. by Bibek Debroy
Jeetu Prajapati was declared dead,

3 What happened after that?
The apex court referred the issue to
the government’s expert body, the Drugs
Laid to rest on his funeral bed.
Technical Advisory Board, in an order in
With the pyre about to be lit,
December 2017 for a fresh review. The He woke up, fighting fit.
highest court, however, kept 15 FDCs
licensed prior to 1988 outside the purview
A presumed ghost in Morena-people fled.
of its order, but allowed the government to
carry out an inquiry. In September 2018,
the government banned the remaining
329 FDCs.
QUOTE OF THE DAY
This (covid-19) virus is and will
4 What’s behind the
latest ban? 5 Should we be cautious
about cough syrups? remain a threat, especially for the
The ban on 14 FDCs (for instance, One of the most pervasive use of most vulnerable. The virus is still
Nimesulide + Paracetamol FDCs is in cough syrups. Many
dispersible tablets) licensed prior experts argue that the ingredients circulating and new variants are
to 1988, was recommended by an used in them often work against emerging. Public health authorities
expert committee constituted by one another, nullifying the effect. would have to keep their guard up,
the union government. Around The evidence that cough syrups
40-50 brands currently available reduce the natural course of cough especially during winter.
in the market could be affected by is weak. The USFDA has warned
the ban. These drugs are used for against their use for children.
cough, fever, pain and common However, expectorants which ease
infections. Paediatricians have the release of mucus is okay to use. MARCO CAVALERI,
welcomed the move, calling many Even among adults, cough EMA VACCINES CHIEF
of these combinations harmful. suppressants should not be used
But many want to ban Nimesulide without prescriptions, for it can
for single dose use as well, citing pose risks to those with lung
risks to the liver. problems.
STO C K TA L K DOWNLOAD THE

MINT APP
BHEL THE INDIAN HOTELS CO
Talcher order was We expect 10% Rev-
aggressively bid for PAR growth in FY24
and further a large and 6% in FY25 and
REDUCE ADD
order for 80 trainsets FY26, along with
TARGET PRICE TARGET PRICE
(Vande Bharat) was similar growth in
₹61 aggressively bid as
₹443 domestic subsidiar-
CURRENT PRICE CURRENT PRICE
₹83.76 well since Bharat ₹389.10 ies. With new room
Heavy Electricals additions, we esti-
Limited had to cut the bid price by 12% mate a 10% revenue CAGR and 15%
to match an offer by another bidder. EBITDA CAGR from FY23-26.
NOMURA (5 JUNE) ICICI SECURITIES (5 JUNE)
INDIGO PAINTS MARICO

Tier-1/2 cities con- Marico’s initiatives to SUBSCRIBE TO
tributed 25% of reve- improve sales growth OUR NEWSLETTER
nues in FY22, rising on the back of strong TOP OF THE MORNING
BUY ACCUMULATE
to 32% in FY23, with growth in new busi-
TARGET PRICE TARGET PRICE
an anticipated nesses are encourag-
₹1,970 increase to 40% by
₹603 ing. The share of new
CURRENT PRICE CURRENT PRICE
₹1,466.1 end-FY24. We ₹542.70 business in total sales
expect double-digit has increased from
volume and sales growth for our paint 9% in FY21 to 15% in FY23 (manage-
coverage universe. ment targets 20% in FY24).
NUVAMA RESEARCH (2 JUNE) ELARA SECURITIES(4 JUNE)
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

PLAIN FACTS
Indian goods exports

face growth pangs
BY HOWINDIALIVES.COM
W
ith a post-covid global surge in demand subsiding, many pockets of goods exports from India are facing growth
challenges. Even as total goods exports from India rose 6% to about $447 billion in 2022-23, export of goods other
than petroleum products and gems and jewellery have effectively remained flat at $315 billion, an analysis of trade
data shows. Petroleum products saw a 40% jump in exports as Indian refiners imported Russian crude, processed it and sent
it to the West.
As the global economy recovered from covid-19, and goods began to move more freely, exports of goods made in India
had surged. In 2021-22, exports of goods other than petroleum and gems and jewellery increased about 30% compared with
2020-21. A year later, it appears, the post-covid surge that lifted many boats seems to have tapered off.
The growth question hung uncomfortably at the top end of the Indian export basket. Of the top 10 goods categories (out
of 30), which together accounted for about 82% of India’s exports in 2022-23, four endured a drop in revenues. In three cate-
gories, revenues grew less than 5%. Sharp declines were seen in cotton yarn and handloom products (down 28%), and plastic
and linoleum products (down 15%). Besides petroleum products, only two categories saw a sizeable jump: rice (up 15%) and
electronic goods (up 51%), though the latter was mainly due to the promotion of exports of mobile phones under the perform-
ance-linked incentive (PLI) scheme.
India's non-oil goods exports Out of top 10 categories, four shrank,

flattened in 2022-23 three grew less than 5%
India's goods exports ($ billion) Exports in 2022-23 ($ billion)
Change over 2021-22 (%)
Excluding petroleum Excluding petroleum
and gems/jewellery Engineering 107 -4.6
355 353 goods
Petroleum
94.5 40.1
315 315 products
Gems &
jewellery 38 -2.9
272 266
Organic &
240 inorganic chemicals
30.3 3.2
236
Drugs &
25.4 3.3
pharmaceuticals
Electronic
goods 23.6 50.5
Readymade 16.2
garments
1.1
Rice 11.1 15.2
Cotton yarn/fabrics/ 10.9

made-ups, etc.
-28.5
Plastic & linoleum 8.4 -14.9

2019-20 2022-23 2019-20 2022-23 Source: Press Information Bureau
Broad-based Decline The decline across groups is not

as bad as it was in 2019-20
DRILLING DOWN further confirms the story of growth pangs Distribution of 99 commodity groups by year-on-year
facing sections of Indian exports, but it also shows that the change in exports
decline is less broad-based than in 2019-20.
At the first level of categorization, Indian exports are 2019-20 2020-21 2021-22 2022-23
Decline
classified into 30 groups as mentioned above. At the second Above 10% 31 30 6 26
level, they can be classified into 99 commodity groups. In 2022-
23, 26 of these 99 commodity groups saw a year-on-year 5-10% 13 12 2 9
decline in value of above 10%. 0-5% 19 10 3 10
Overall, in 2022-23, 45 of 99 commodity groups saw a decline
in exports of any extent. This is in stark contrast to 2021-22, Growth
which was a blockbuster year for exports, and saw 80 of 99 0-5% 10 9 5 8
commodity groups register an increase in exports of above 10%.
5-10% 8 3 3 10
However, compared with 2019-20, which saw a decline in
overall exports of 5%, the 2022-23 decline was less broad-based. Above 10% 18 35 80 36
In that year, 63 of the 99 commodity groups had seen a decline
Source: Ministry of Commerce and Industry
in exports.
India's export drag extends beyond

Chinese closures
Chinese Closures
Year-on-year change in exports in 2022-23 (%) CHINA—NUMBER three in India’s exports in 2021-22, with a
Excluding petroleum and gems/jewellery Total 5% share—was a major reason for the lacklustre performance of
4.4 Indian exports in 2022-23. Recurring lockdowns in China in
ASEAN 2022-23 meant that India’s overall exports to it fell by 28%
4
4 compared with 2021-22, and exports other than of jewellery and
Europe 14.1 petroleum products slumped 30%. Major categories of exports to
5.9 China that suffered in 2022-23 include organic chemicals (down
North America 4.1
36% to $1.5 billion), seafood (down 20% to $1.3 billion) and
11.2 electrical machinery (down 18% to $679 million). Elsewhere,
Gulf Countries 16.8
-30.8 exports to other major trading partners—Asean, Europe, North
China -28 America and the Gulf—remained in positive growth territory.
-10.5 These four groups of countries and China account for around
Others 7.1 70% of India’s total exports. Excluding China, however, still
1.5 makes Indian export performance only slightly less lacklustre.
World, excluding China 8.7 Non-oil and non-jewellery exports, without taking China into
account, rose by only 1.5% over 2021-22.
Manufacturing Dilemma With mobile exports, imports of

components have surged
BESIDES OIL, another bright spot was electronic goods, whose Net exports ($ million)
exports surged 51% in 2022-23 to $23.5 billion. Of this, $11.1 billion Finished phones
9,671
came from mobile phone shipments, against $4.8 billion in 2021- Phone components
(PCBA, display modules, etc)
22, mainly due to government incentives under the PLI scheme. 3,277
However, a recent paper by Rahul Chauhan, Rohit Lamba and 576 861
Raghuram Rajan points to the flip side—a sharp jump in imports -4
of components used in the assembly of mobile phones. This is
borne out by trade data for 2022-23.
Thus, the authors say, India is currently an assembler of mobile -8,877 -10,147 -9,372
phones, rather than a manufacturing powerhouse in its own -13,921
right. This is because PLI incentives are given for “finishing the
phone in India, not on how much value is added by -28,267
manufacturing in India”. If the weakness in export demand 2018-19 2019-20 2020-21 2021-22 2022-23
persists, this notion will be challenged further, across sectors. Product codes (ITCHS) used to compile data were based on paper
www.howindialives.com is a database and search engine for by Chauhan, Lamba and Rajan.
public data.
PARAS JAIN/MINT
PEANUTS by Charles M. Schulz

MuMBAI, NEW DELHI, BENGALuRu, kOLkATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PuNE* VOL. 6 NO. 134 Rs. 10.00 20 PAGES
Will the HDFC merger live Sequoia is now Peak XV

livemint.com up to its promise? uP12 in India, SEA uP5
Adani set to revive Byju’s default could

spark lender action
SAT reverses
Brickwork’s
DON’T MISS
licence
Mundra PVC project Ranjani Raghavan
ranjani.raghavan@livemint.com
MuMBAI
cancellation
Priyanka Gawande
Bharat Biotech plans to develop
Mundra Petrochem to get ₹14,000 cr credit line from banks priyanka.gawande@livemint.com
India’s first indigenous TB vax
E
dtech unicorn Byju’s MuMBAI
skipped paying $40 mil- Bharat Biotech has told the Drugs Controller
Anirudh Laskar General of India that it wants to develop
T
lion interest on a $1.2 bil- he Securities Appellate
anirudh.l@livemint.com THE BIg BET lion loan that was due on 5 Tribunal (SAT) on Tues-
India’s first indigenous tuberculosis (TB)
vaccine. The Hyderabad-based firm has
MuMBAI June, triggering a default that day set aside a Securities submitted the proposal to initiate the phase
The Mundra Petrochem project may become one of Adani Group’s
could affect several group and Exchange Board of India 1 and 2 clinical trials in India. >P2
A
mainstay businesses as it may fill a critical gap in India’s PVC industry
dani Group has revived entities and prompt lenders to (Sebi) order cancelling the
its investment plan for MUNDRA PETROCHEM Jul 2022: ADANI Group approaches invoke guarantees and initiate licence of Brickwork Ratings ‘Indian economy to slow down
Mundra Petrochem  2 MTPA: Total capacity by 2024 lenders for ₹14,000 cr loan for the PVC insolvency action. Byju Raveendran, co-founder India Ltd for repeatedly violat-
plant to 6.3% in FY24, global to 2.4%’
Ltd, India’s largest  Up to $2 bn: Initial capex In a statement on Tuesday, and CEO, Byju’s. BLOOMBERG ing norms related to credit rat-
 $4-4.5 bn: Total planned capex Jan 2023: HINDENBURG Research The World Bank on Tuesday lowered
polyvinyl chloride the country’s most-valued ings.
accuses Adani of pulling the biggest con its estimate for India’s economic growth
(PVC) plant, with initial funding of in the corporate history startup said it would not pay to the terms of TLB, purchased A SAT bench led by Justice rate to 6.3% in FY24, citing slowing
 ₹66,566 cr: Adani Group’s
₹14,000-16,000 crore, after a four- operating profit in FY23 any further interest on the a significant portion of the Tarun Agarwala said “consid- private consumption, a key growth
month suspension of operations, Feb-Mar: THE group suspends Term Loan B (TLB) until a US loan while primarily trading in ering the totality of the viola-
operations at several projects, driver, due to high inflation and rising
two people directly aware of the INDIA'S PRODUCTION CAPACITY including Mundra Petrochem court decided on its petition distressed debt,” the state- tions, we are of the opinion borrowing costs. >P2
development said.  1.4 MTPA: At present against some of its lenders, ment said. that the alleged violation of
Jun: BANKS agree to disburse the
Mundra Petrochem has secured  3.5 MTPA: Demand as of Q3FY23, first tranche of credit by June-end including Redwood Capital TLBs are senior secured routine matters is not deliber- RHFL debenture holders accuse
growing at 7% annually for capex revival Management Llc. debt with higher interest rates. ate or fraught with mala fides
Source: Mint research and company disclosures
Bank of Baroda of foul play
“Byju’s has taken the deci- They are typically used by or fraud and therefore cannot
m E XC LU S I V E SARVESH KUMAR SHARMA/MINT
sive action to file a complaint companies to fund acquisi- result in the cancellation of the
The debenture holders of Reliance Home
Finance Ltd (RHFL) have issued a legal
project cost will be around ₹35,000 requesting anonymity. in the New York Supreme tions and are often structured licence.” notice to Bank of Baroda (BoB), accusing it
an in-principle approval for a credit crore. “Seventy per cent of the In February, the group indefi- Court to challenge accelera- with covenants and terms In its order, Sebi cited of engaging in foul play, and disregarding the
line of up to ₹14,000 crore from a money to be used in the planned nitely suspended several capital tion of the $1.2 billion TLB and based on the borrower’s cred- delayed default recognition directives issued in a recent Supreme Court
clutch of large domestic banks, the capex is likely to come from state- to disqualify Redwood Capital ruling. >P7
people said, adding that the total run lenders,” one of the two said, TURN TO PAGE 6 Management, who, contrary TURN TO PAGE 6 TURN TO PAGE 6

02 Wednesday, 7 June 2023

MuMbai ECONOMY & POLICY LIVEMINT.COM
m MINT SHORTS
RBI’s MPC starts deliberations on
Central facility to aid ease of India, UAE
to review
policy rate, decision on Thursday
Mumbai: The Reserve Bank of India’s rate-setting monetary pol-
icy panel began deliberations on Tuesday amid expectations that
the central bank will keep the benchmark interest rates
entry and exit for business progress
under FTA
unchanged at 6.5% on the back of easing retail inflation and the
need to push economic growth. Headed by Reserve Bank gover- Ravi Dutta Mishra
nor Shaktikanta Das, the six-member Monetary Policy Commit- ravi.dutt@livemint.com
tee (MPC) will meet for three days and the decision would be Decision-making to move from Registrars of Companies to central facility in next six months NEW DELHI
announced on 8 June. PTI
I
ndia and the UAE are set to
Gireesh Chandra Prasad STP forms require approval from the hold the first joint trade com-
Navy’s torpedo successfully gireesh.p@livemint.com relevant RoC, explained Hassan. mittee meeting next week to
“Once this system is established, it assess the free trade agreement
engages underwater target NEW DELHI
will lead to faster processing of the signed last year, a government
P
PTI
lans to centralize decision- forms. There will also be uniformity in official said. Both the countries
making on all regulatory processing the forms which renders are expected to release the util-
forms filed by companies will clarity to users. Since, there shall be no ization rate of the FTA that
be implemented by December user interface, it will reduce corruption. would give a clear picture of the
with the task being trans- This will also lessen the burden on the benefit accrued by the deal.
ferred from Registrars of Companies RoCs, who may now focus on other While the commerce and
(RoCs) to a central facility, said a person activities such as conducting inquires, industry ministry has said that
informed about the shift. inspections and investigations. Ulti- significant duty benefits are
Right now, only decisions on applica- mately, the initiative will propel the accruing to Indian exporters
tions for voluntary closure are central- ‘ease of doing business’ in India,” said under the Comprehensive
ized, making exits easier for companies Hassan. Economic Partnership Agree-
with no assets and liabilities. For a smoother implementation, ment (CEPA), it is yet to reveal
“By December, all regulatory forms knowledgeable and experienced per- the crucial FTA utilization
New Delhi: An indigenously developed heavy-weight tor- will be centrally processed. The idea is to sonnel should be deployed for faster number due to a lack of data.
pedo of the Indian Navy successfully engaged an underwa- ensure ease of entry, ease of exit and ease processing of forms and resolution of Historically, India’s FTA utili-
ter target that was described by the force as a “significant of living for businesses,” said the person, Centralised processing is expected to make decision-making more uniform and grievances, said Hassan. zation rate as per the Asian
milestone”. In a brief statement, the Indian Navy said on adding that the move will be a major objective while improving speed and efficiency. MINT A similar centralized processing cen- Development Bank, has
Tuesday that the torpedo’s engagement of the target milestone in improving ease of doing tre has simplified the processing of remained under 25%, among
reflected its commitment to “future proof combat readi- business. from RoCs to the new facility. Some reg- ings under the Companies Act. returns over a period of time, said the lowest in Asia.
ness” through self-reliance. PTI The ministry of corporate affairs is ulatory forms have already been put in “This envisages improving the accu- Dureja. The pact, which came into
currently giving final shape to the the straight-through-process (STP) or racy of information filed by corporations “Similarly, the government’s focus is force on 1 May 2022, elimi-
changes needed in the flow of ‘file-and-forget’ mode, which do and will significantly reduce the to build the technological frame- nated duties for 90% of India’s
Cyber security team neutralizes regulatory processes to exe- not require RoC approvals— existing turnaround time work to solve the anomalies exports to the UAE by value and
cute the project. only an acknowledgement taken for processing for transforming the corpo- covered sectors such as gems
malware threat: AIIMS
New Delhi: In a fresh incident, the All India Institute of Medical
This initiative is differ-
ent from the ongoing mn
total number
1.5 is needed. forms,” said Sakshi
Centralized processing Dureja, lead, Secretarial
Number of
rate environment.”
Hassan said that until 25 and jewellery, textiles, leather
and engineering goods. Gems
Sciences (AIIMS) Delhi said that a malware attack was detected technological upgrade of is expected to make deci- Compliance at AKM now, RoCs have been and jewellery, electrical
on Tuesday afternoon by its cybersecurity systems. The attempt the MCA21 portal where of active sion-making more uni- Global, a tax and consult- RoCs in the handling grievances of machinery, automobiles, cere-
was successfully thwarted, and the threat was neutralized. The companies and limited lia- companies in India form and objective while ing firm. Dureja said this country stakeholders. He sug- als, and machinery and
e-Hospital services are fully secure and are functioning normally, bility partnerships (LLPs) improving speed and effi- aims to keep corporate data gested setting up help desks mechanical appliances have
it said. PRIYANKA SHARMA have to file their regulatory ciency. The move was more secure. until the new system is free of been the top gainers by value.
forms. announced in the Union budget Centralizing the processing is technical glitches. The commerce and industry
In centralizing decision-making, fil- this year by finance and corporate affairs likely to result in cutting the response An email sent to the ministry of cor- ministry expects India’s
No coal shortage in India this ings by companies will continue to be minister Nirmala Sitharaman. time on filings, said Noorul Hassan, porate affairs spokesperson on Monday exports to the UAE to touch a
done on the same portal but the back- Experts said the idea is to create an Partner at law firm Lakshmikumaran & seeking comments for the story record $50 billion by 2026-27
monsoon, says Pralhad Joshi end processing of forms will be moved integrated e-filing platform for the fil- Sridharan Attorneys. Currently, non- remained unanswered. from $31.8 billion in 2022-33 .
REUTERS
Bharat Bio seeks nod Procurement Delhi CM okays 24X7 opening

ceiling for tur,
for TB vaccine trials urad, masur for 155 shops, establishments
Priyanka Sharma ning several programmes to removed PTI
priyanka.sharma@livemint.com eliminate TB by 2025. feedback@livemint.com
NEW DELHI The country currently uses Puja Das
C
New Delhi: India will not face any shortage of coal in the BCG preventative shots, puja.das@livemint.com hief Minister Arvind
B
upcoming monsoon season this year, said the Union coal harat Biotech has told which are administered to NEW DELHI Kejriwal has granted
minister Pralhad Joshi. Addressing reporters here on the the Drugs Controller babies. approval for round-the-
T
sidelines of a conference on underground coal mining, General of India (DCGI) However, BCG shots are not he government has clock operation of 155 shops
the minister said there are 35 million tonnes of coal at that it proposes to develop thought to be very effective— removed the procure- and commercial establish-
thermal power plants, 65 mt at pit heads of Coal India Ltd India’s first indigenous tuber- even vaccinated people can ment ceiling of 40% for ments across Delhi, a move
and private miners and another 10-12 mt in various stages culosis vaccine. contract the disease. tur, urad and masur under aimed at boosting the city’s
of transit. STAFF WRITER The Hyderabad-based The DCGI panel also asked Price Support Scheme (PSS) for night-time economy.
pharma company has submit- the firm to chalk out a treat- 2023-24 to boost domestic The file has now been sent to
ted the proposal to initiate the ment plan for any subject who production of pulses. Lieutenant Governor V K Sax-
Competition Commission clears phase 1 and 2 clinical trials in may develop TB in the one- This comes at a time when ena for a decision on whether
India, a global TB year follow-up procurement of tur and urad he would like to express a dif-
minority stake buy in Lenskart hotspot. A DCGI expert period. under PSS was almost zero due ference of opinion with the
New Delhi: The Competition Commission of India has A DCGI expert panel has sought Queries sent to to skyrocketing market prices elected government on the
approved the minority stake acquisition in Lenskart Solutions panel has sought more details the health minis- amid lower production. approval, the Chief Minister’s Delhi chief minister Arvind Kejriwal. PTI
by Dove Investments, Defati Investments Holding BV and Infin- more details about the safety try and Bharat In the ongoing Kharif and Office (CMO) said in a state-
ity Partners. Lenskart Solutions Pvt Ltd (LSPL) is engaged in the about the safety Biotech spokes- Rabi marketing season, the ment on Tuesday. tions from sections 14, 15 and 16 to “inspector raj”, the state-
data and
business of manufacturing, sale and wholesale trading of eye- data and treat- person did not agriculture department has By approving 24X7 opera- of the Delhi Shops and Estab- ment said. Traders will not
wear products, while Dove Investments, Defati Investments ment plan for treatment plan elicit a reply. been able to procure about tions for a new batch of com- lishments Act, 1954. These need to go to government offi-
Holding BV and Infinity Partners are private equity investors. subjects. for subjects Reported TB 70,000 tonnes of masur (len- mercial applicants, the Delhi three sections collectively put ces and their applications will
PTI Also, details cases in 2019 tils), 644 tonnes of tur (arhar or government aims to generate restrictions on hiring night- be processed within four weeks
have been sought stood at close to pigeon peas) and 1,500 tonnes more job opportunities, safe- shift employees and impose of submission along with verifi-
on whether trial cohorts 2.4 mn in 2019. and urad (black gram). “The guard the interests of workers, related rules upon opening and cation and on-site inspection.
US-bound Air India flight makes include household contacts, In 2022, the number assured procurement of these and contribute to the overall closing times and holidays for In case an application fails to
recovered patients and people increased significantly to more pulses by the government at development of the local econ- commercial establishments, get approval, the government
emergency landing in Russia who may have the TB bacteria than 2.4 mn. remunerative prices will help omy, it said. the statement said. gives the applicant an opportu-
Istanbul: An Air India plane flying from Delhi to San Francisco but not full-blown TB. Recently, union health min- motivate the farmers to The extended operational Only 269 establishments nity to rectify their shortcom-
was forced to divert and land in Russia after it developed a techni- The Indian Council of Medi- ister Mansukh Mandaviya enhance sowing area in respect hours will also ensure round- were allowed such exemptions ings as per the set parameters
cal issue with one of its engines, the airline said. The 216 passen- cal Research is also working to stressed the urgent need for a of tur, urad and masur in the the-clock access to essential in the 68-year period from 1954 and seek approval again. A total
gers onboard are being provided support on the ground and will develop a TB vaccine. TB vaccine and said that it upcoming Kharif and Rabi goods and services for Delhi to 2022, it said. of 523 shops have been granted
be provided with alternative options to reach their destinations India is home to more than 2 important to fast-track its sowing seasons to enhance the residents, it added. The Delhi government has permission to operate round
at the earliest, Air India said, adding the plane also carried a crew million TB patients and the development and expand production,” according to an The government has completely digitised the appli- the clock in the last two years,
of 16. REUTERS union health ministry is run- manufacturing capacities. official statement. granted the applicants exemp- cation process, bringing an end according to the statement.
Indian economy may slow to 6.3%, global growth to 2.4%: World Bank CORRECTIONS AND
CLARIFICATIONS
Mint welcomes comments,
Ravi Dutta Mishra to slow further to 6.3% in GDP expanded at 6.1% in the some distance away, it said. Bank will keep hiking rates,
Sombre projection suggestions or complaints
ravi.dutt@livemint.com FY2023/24 (April-March), a January-March quarter, accel- “Global growth is projected although at the slower 25-ba- about errors.
The WB report attributes India’s slowdown to subdued private consumption.
NEW DELHI 0.3 percentage point down- erating from 4.5% in the previ- to slow significantly in the sec- sis-point pace it set last
2022e 2023f 2024f Real GDP growth (% change from previous year) Readers can alert the
ward revision from January. ous quarter and 4% in the ond half of this year, with month.The World Bank said
newsroom to any errors in the
T
9
he World Bank on Tues- This slowdown is attributed to fourth quarter of FY22. weakness continuing in the drag from higher borrow- paper by emailing us, with your
day lowered its estimate private consumption being 6 To be sure, experts have 2024,” the World Bank said. ing costs is “increasingly full name and address to
for India’s economic constrained by high inflation been citing private consump- “The possibility of more wide- apparent,” with more lagged feedback@livemint.com.
growth rate to 6.3% in FY24 and rising borrowing costs, 3 tion as a weak point. spread bank turmoil and effects still to come as credit
citing slowing private con- while government consump- Rating agency Ind-Ra had tighter monetary policy could conditions tighten. It is our policy to promptly
0 respond to all complaints.
sumption, a key growth driver, tion is impacted by fiscal con- said that with inflation easing, result in even weaker global It also said its analysis shows Readers dissatisfied with the
due to high inflation and rising solidation,” the World Bank -3
US Euro Japan China Russian Brazil India
it expected private consump- growth.”The note of caution the outlook for emerging mar- response or concerned about
borrowing costs. report said. Area Federation tion growth to acquire comes as major central banks ket and developing economies Mint’s journalistic integrity may
Stating that the global econ- However, the World Bank e: estimate (actual data for commodity prices) momentum, but the current assess how and when to pare is particularly “worrisome” as write directly to the editor by
f: forecast Source: World Bank sending an email to
omy is in a “precarious situa- added that growth is projected consumption demand is back the fastest global mone- increases in rates driven by the
tion” and heading for a sub- to pick up slightly through SATISH KUMAR/MINT highly skewed in favour of tary policy tightening since perceived hawkishness of the asktheeditor@livemint.com
stantial growth slowdown, the FY2025/26 as inflation moves ing of the largest emerging in manufacturing in the March goods and services consumed the 1980s. Next week, the Fed- Fed substantially boost the Mint’s journalistic Code of
World Bank revised its out- back toward the midpoint of market eonomies. quarter, India’s economy largely by households falling eral Reserve will examine the likelihood that those countries Conduct that governs our
look for global growth for the tolerance range and Driven by robust growth in expanded at 7.2% in FY23 in the upper-income bracket. possibility of taking a pause in could face a financial crisis. newsroom is available at
2024 to 2.4% from 2.7% earlier. reforms pay off. India, it said, agriculture, construction and beating the official forecast of A broad-based consumption rate increases, while investors (With inputs from Bloom- www.livemint.com
“Growth in India is expected will remain the fastest-grow- services sectors and a rebound 7%, official data had shown. recovery, therefore, is still expect the European Central berg)
FOR ANY QUERIES/DELIVERY ISSUES

CALL: 60004242, Monday-Saturday, 10am-6pm (Delhi, Mumbai, Bengaluru, Kolkata, Chennai, Hyderabad, Ahmedabad, Pune and Chandigarh) MAIL: delivery@livemint.com TO SUBSCRIBE: Give a missed call on 7039035039 or visit www.mintreaders.com or write to us at subscription@livemint.com
First published in February 2007 to serve as an unbiased and clear-minded chronicler of the Indian Dream.
SRUTHIJITH KURUPICHANKANDY (EDITOR); PUBLISHED/PRINTED BY MANHAR KAPOOR ON BEHALF OF HT MEDIA LTD, 9th Floor, Tower 3, Indiabulls Finance Centre, Senapati Bapat Marg, Elphinstone Road (West), Mumbai-400013
Printed at HT Media Ltd. Press at Plot No. 6, TTC Industrial Area, Thane - Belapur Road, Navi Mumbai - 400 708.
RNI Registration MAHENG/2018/76720; Mint welcomes readers’ responses to all articles and editorials. Please include your full name, address and telephone number. Send in your views to the editor at letters@livemint.com. ©2023 HT Media Ltd All Rights Reserved



MuMbai 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
62,792.88 0.01 18,599.00 0.03 15,878.40 0.12 42,597.10 0.46 18,527.85 0.08 27,452.83 0.29 31,174.98 0.42
PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN
62,787.47 62,738.35 18,593.85 18,600.80 15,859.50 15,873.75 42,401.35 42,475.30 18,513.85 18,525.35 27,372.73 27,384.79 31,043.53 31,095.09
HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW
62,867.95 62,554.21 18,622.75 18,531.60 15,895.70 15,816.70 42,642.85 42,352.60 18,550.65 18,459.80 27,475.78 27,289.46 31,193.01 31,022.25
m MINT SHORTS Falling cost only bright Titan needs demand

South Africa skirts recession more than the residual
as economy back on track
South Africa’s economy escaped recession in the first
quarter and is once again bigger than before the corona-
virus pandemic hit, as most sectors grew. Gross domestic
spot for steel makers stake in CaratLane
product expanded 0.4% in the three months through Vineetha Sampath Harsha Jethmalani &
A breather Shining bright
March, after contracting a revised 1.1% in the previous vineetha.s@livemint.com Vineetha Sampath
quarter, Statistics South Africa said in a report released The average realization of steel companies rose sequentially in Q4FY23 aided by Shares of Titan Co. have beaten
harsha.j@htlive.com the Nifty 50 index sharply in the
S
in Pretoria, on Tuesday. That matched the central bank teel makers saw some respite better pricing.
past one year.
forecast and the median estimate of 16 economists in a in the March quarter (Q4FY23) 1,00,000
T
Bloomberg survey. The economy grew 0.2% from a year with volumes and domestic Average realization per tonne of steel companies (in )
he Titan Co. Ltd stock was in Titan Co. Nifty 50
140
earlier. At an annualized 4.61 trillion rand ($240 billion) prices rising sequentially. Sea- focus on Tuesday, hitting a new
in the first quarter, GDP is bigger than the last quarter of sonality had a role to play here 80,000 52-week high of ₹2,893 apiece. 131.06
2019, before the pandemic struck. The economy’s lack- as Q4 is usually the strongest quarter. According to an Economic Times 130
luster performance was largely due to record power cuts Also, the margin performance improved report, Titan’s buyout of the rest of the
imposed by state power utility Eskom Holdings SOC Ltd, across most companies. 60,000 stake in CaratLane is facing hurdles.
which is unable to meet demand from its old and poorly The average domestic hot rolled coil Currently, Titan holds a 72.3% stake in 120
maintained plants. The outlook for Africa’s most-indus- (HRC) price increased by over 6% CaratLane. Differences have emerged
trialized economy remains bleak. BLOOMBERG sequentially in Q4 to ₹59,228 per tonne, 40,000 between the Tata Group and Carat- 110
according to SteelMint. This led to an Lane founders over the valuation of
improvement in realization per tonne. the residual stake, said the report, cit- 112.25
Data from Motilal Oswal Financial Servi- 20,000 ing sources. 100
ces shows that the average of consoli- In its March quarter earnings call,
dated realization per tonne of steel com- Titan’s management refrained from 90
panies under its coverage rose by ₹2,290 0 giving any insight on acquiring the
Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23
sequentially in Q4. These companies are remaining stake in CaratLane. How-
Note: The numbers are the average of consolidated realization per tonne of steel companies under
Jindal Steel & Power Ltd, JSW Steel Ltd, Motilal Oswal's coverage, which are Jindal Steel & Power, JSW Steel, Tata Steel and Steel Authority of India ever, it is unlikely that the residual stake 80
06 Jun 2022 06 Jun 2023
Tata Steel Ltd and Steel Authority of Source: Motilal Oswal Financial Services
acquisition in CaratLane moves the
Values rebased to 100 Source: Bloomberg
India Ltd. needle meaningfully for Titan’s near-
However, in Q1FY24, margins of steel SATISH KUMAR/MINT
to-medium term earnings. The poten- SATISH KUMAR/MINT
companies are likely to contract sequen- lysts at ICICI Securities in a report on 3 To be sure, a pick-up in global steel tial acquisition of balance stake in Car- Kotak Institutional Equities’ fair value
tially, given the high-cost inventory of June. prices is necessary to provide a boost to atLane would be sentimentally positive. of ₹2,970 apiece based on sum-of-the-
coking coal. True, coking coal spot pri- Moreover, Q1 is a seasonally weak domestic HRC prices. This, to a great “CaratLane is a good brand under parts valuation, as per a May report.
ces are trending lower, but the gains quarter. Tata Steel in its Q4 earnings call extent, depends on the rebound in the Titan, it has scaled up quite well and is Meanwhile, in the last one year,
would reflect in the financials with a lag. said it expects volume in Q1 to be lower Chinese economy, a key market for met- now reasonably profitable too,” said Titan’s shares have risen by 31%. Valua-
In Q1 so far, average prices of coking coal sequentially, impacted by shutdowns. als. Demand uptick in China has Amnish Aggarwal, head of research at tions are not exactly cheap. The stock
Homebuying in UK has been impacted as borrowers are are at $244 per tonne and nearly 29% However, for FY24, the company sees its remained elusive despite strong credit Prabhudas Lilladher. “From the view trades at 66 times FY24 estimated earn-
squeezed by a surge in interest rates. ISTOCK lower than Q4, according to CoalMint. volume rise by 1.5 million tonnes from indicators, notes ICICI Securities. point of having multiple brands under ings, Bloomberg data showed. With
Thus, a good share of the benefit from almost 29 million tonnes in FY23. There is a silver lining, though. “Given one roof catering to different seg- gold prices scaling new highs in 2023,
lower coking coal prices would flow Another concern is that the domestic that China has environmental restric- ments and sub-segments, it would be near-term sales momentum could be
UK homebuilding shrinks at through from Q2 onwards. steel price is at a premium to import pri- tions, production cap would mean pro- helpful/positive if they hampered as consumers
pace seen in 2009 crash Iron ore, another key duction of steel would be at are able to acquire the It would be tend to postpone jewel-
UK housebuilding is contracting at a pace seen during the input, has also seen a tOUGh tiMES par or lower this year ver- full stake in CaratLane,” positive if Titan lery purchases. Further,
financial crisis property crash 14 years ago as borrowers reduction in price. State- sus the last. This could he added. CaratLane is acquires full stake competition is a worry.
are squeezed by a surge in interest rates, a closely owned iron ore producer pRicES of coking dOMEStic steel EnviROnMEntAL mean exports from China growing at a fast pace in CaratLane so “Competitors such as
watched survey found. S&P Global said its PMI index for NMDC cut prices of lumps coal and iron ore price is at a premium curbs in China may would dip in 2HCY23 thus and this trend is likely to Malabar Gold and other
have fallen. But to import prices, boost domestic steel that there are
the sector dropped to 42.7, the lowest since May 2020 and fines by 7-11% from 29 coking coal benefits which means there is price, but demand is resulting in favourable persist. In FY23, Titan’s South-based companies
when homebuilding was brought to a standstill by the May. will reflect with a lag more downside risk also a monitorable demand supply dynamics, standalone jewellery many brands have become aggressive
first covid-19 lockdown. Excluding the pandemic, it was Indeed, there are levers which may augur well for revenue excluding bul- under one roof on gold prices. So, the
the weakest since 2009. It bucked a wider pickup in the for expansion in steel com- domestic steel price,” said lion sales grew by 37% premium that Titan used
construction industry in May. The overall PMI rose to panies’ margin, but the demand envi- ces, which means there is further down- Satyadeep Jain, an analyst at Ambit Cap- year-on-year (y-o-y) to to charge on gold prices
51.6 from 51.1 in April, boosted by commercial building ronment continues to remain sombre. In side risk. ital. Having said that, one needs to moni- ₹31,900 crore. CaratLane’s revenues has also come down. In this scenario,
and civil engineering work. It was stronger than the 50.8 Q1 so far, the average domestic HRC “Imported steel prices from Vietnam tor global demand closely, he added. grew by 73% y-o-y to ₹2,200 crore. incremental earnings growth must be
forecast by economists, with any reading above 50 sig- price is 2.4% lower than Q4. “As per our and Japan are working out to be cheaper Shares of key steel companies—Tata CaratLane’s Ebit margin rose sharply meaningful and currently that does not
naling growth. However, the drop in housing activity is channel checks, traders are waiting for than domestic prices. For instance, Viet- Steel, JSW Steel, Jindal Steel & Power, to 7.6% in FY23 from 4.7% in FY22. As seem probable,” said Jay Gandhi, ana-
the clearest sign yet that developers are responding to a price announcements by the major mills nam July 2023 HRC landed price deliv- and Steel Authority of India —are down on March end, CaratLane’s total store lyst at HDFC Securities. “Jewellery
weaker property market by scaling back projects. Nation- in June 2023 and are expecting a cut of ery is currently quoted at a discount of by 8-16% from their respective 52-week count is 222. For now, analysts are not margins are at a peak and pricing levers
wide Building Society said last week that UK house prices ₹1,500-2,000 per tonne for HRC and ₹5,000 per tonne, compared to domes- highs. While it is crucial for demand to ascribing a large value to CaratLane in are missing, so revenue growth is likely
fell at their fastest pace in 14 years in May. BLOOMBERG rebar prices, and slightly more for cold tic prices,” said analysts at Motilal Oswal bounce back, margin trajectory also their valuation estimates. For to be volume-led, but superlative
rolled coil/coated products,” said ana- in a report on 5 June. requires tracking. instance, CaratLane accounts for 6% of growth is unlikely to come,” he added.
Mark to Market writers do not have positions in the companies they have discussed here
RBI to curb inflation with liquidity drain What a new billionaire census tells
Bloomberg
feedback@livemint.com
payout by the RBI to the gov-
ernment. The RBI’s foreign-
exchange operations, where it
us about the super-rich, in charts
T
he Reserve Bank of India buys dollars to soak up foreign By Manjul Paul
(RBI) intensified its inflows, may also be adding to manjul.paul@livemint.com
operations to remove liquidity. The world’s billionaire population dropped 3.5% to 3,194 in 2022 as global markets faced volatility amidst high inflation, the Ukraine
cash from the banking system, The RBI will maintain ade- war, and monetary tightening by central banks, showed a 'billionaire census' by Altrata, a data intelligence platform. Eleven of the 15
showing it wants to keep quate liquidity in the banking countries with the most billionaires saw a drop, with India’s count falling 8.9%, the worst after China’s. Around 29% of the billionaire
population was concentrated in just 16 cities, Mumbai being the sole Indian city in the list. Hong Kong and Switzerland had the most
liquidity tight to rein in infla- system, governor Shaktikanta
super-rich people per million population, and India had the least among top countries, a Mint analysis showed. The data is based on
tion. Das said last month, without Altrata’s Wealth-X platform. Here’s more.
The central bank said on specifying any amount.
Tuesday it will drain ₹75,000 The RBI drained ₹50,870 India saw the 2nd biggest decline in Mumbai is the only Indian city to feature among
crore ($9.1 billion) from the crore from the banking system billionaire count, only China was worse major billionaire hubs
banking system via a reverse The central bank said on Tuesday it will drain ₹75,000 crore from on 2 June through a 14-day Change in billionaire population in 2022 Cities with the most billionaires, 2022
<50 50-100 ≥ 100
repo auction. That was after it the banking system via a reverse repo auction. MINT reverse repo auction, and it Number Change, in %
drained a combined ₹1.2 tril- removed another ₹66,640 US 955 -2.1 San London
lion over two previous occa- the 4% mid-point of the cen- will be be no slack until the job crore via a four-day operation Francisco Moscow
sions this month. tral bank’s target range. is finished on the inflation tar- on 5 June. China 357 -10.8 Beijing
The central bank’s actions “The reverse repo get.” “The markets will focus Germany 173 -1.7 136
suggest it doesn’t want to ease announcement is in line with The central bank’s efforts to more on the RBI’s commen- Los New York 112
UK 114 -5 Angeles Hong Kong
up in its fight against inflation RBI’s stated stance of with- remove short-term funds from tary on liquidity, with durable 39
until price gains are firmly drawal of accommodation,” the system comes amid a jump liquidity having increased Mumbai Singapore
India 113 -8.9
under control. Even though said Naveen Singh, head of in excess banking cash after sharply,” said Suvodeep Rak-
Hong Kong 112 -1.8
inflation has eased in recent trading at ICICI Securities Pri- the withdrawal of high-value shit, a senior economist at
months, it still remains above mary Dealership Ltd. “There banking notes and a dividend Kotak Institutional Equities. Russia 112 4.7
Switzerland 110 -0.9
Saudi Arabia 71 0 Women have a relatively better share among
younger billionaires
Goldman lowers US recession probability Italy 67
Among top wealth capitals, India has the

-1.5 Share of global billionaire population by gender and age group (in %)
Women Men
Less than 50 years 18 82
Bloomberg fewest super-rich as a share of population
flows have slowed, lending Hatzius. 50-70 years 11 89
Number of billionaires per million population
feedback@livemint.com volumes have held up, and Since March 2022, the US
More than 70 years 11 89
lending surveys point to only central bank has raised its pol- Hong Kong 14.9
G
oldman Sachs Group limited tightening ahead,” Jan icy rate at 10 consecutive
Inc. lowered its esti- Hatzius, Goldman’s chief meetings by a total of 5 per- Switzerland 12.5 Gautam Adani's net worth has dropped
mate of the odds of a economist said in a note. Also, centage points, bringing its by more than half in 2023
US 2.8
US recession over the next 12 “the tail risk of a disruptive target-rate range to 5% to Change in net worth of Indian billionaires, year-to-date ($ billion)
months to 25% based on wan- debt ceiling fight has disap- 5.25% Germany 2.1 Those who gained the most Those who lost the most
ing banking-sector stress and peared.” Fed officials at their June
the bipartisan agreement to Goldman’s 2023 growth 13-14 meeting appear likely to Saudi Arabia 1.9 2.72 2.65 2.08
suspend the nation’s debt forecast is 1.8%. The consensus signal additional interest-rate UK 1.7 Cyrus K P Singh Kumar
limit. of forecasters surveyed by hikes ahead via their quarterly Poonawalla Mangalam Gautam Mukesh Radhakishan
The move reverses Gold- Goldman lowered its estimate Bloomberg is 1.1%. It remains forecasts for the federal funds Italy 1.1 Birla Adani Ambani Damani
man’s mid-March upgrade of to 25%. BLOOMBERG unclear whether Federal rate, Hatzius wrote. Goldman -2.46 -2.24
recession probability to 35% Reserve policy makers need to economists expect the US cen- Russia 0.8
after the collapse of Silicon will subtract only a modest 0.4 cause a recession to bring tral bank to lift its policy rate China 0.3 -59
Valley Bank. percentage points from real inflation—still over 4%—back by another 25 basis points, Data as of 5 June.
“We have become more GDP growth this year, as to their 2% target, with the key mostly likely in July, to a peak India 0.1
confident in our baseline esti- regional bank stock prices factor being if the labor market target rate range of 5.25% to Source: Billionaire Census 2023 report, Wealth-X, Bloomberg Billionaires Index
mate that the banking stress have stabilized, deposit out- can “rebalance smoothly,” said 5.5%.
LIVEMINT.COM DEALS, TECH & STARTUPS Wednesday, 7 June 2023

MuMbai 05
m MINT SHORTS
Insurtech startup PolicyBoss
Sequoia is Peak
secures Series B funding
Bengaluru: Landmark Insurance Brokers Pvt. Ltd, which oper-
ates the insurtech startup PolicyBoss, has secured Series B fund-
ing from investors including India SME Investments and existing
XV in India, SEA
investor TPG Growth. Angel investors Madhav Mirani,
co-founder of Ugam Solutions, and Jitendra Gupta also joined the
round, the startup said in a statement. It didn’t disclose the
amount it raised. The Mumbai-based startup plans to use the India-SEA unit turns independent under global recast
fresh funding towards expanding its presence in tier II and III cit-
ies in India, diversify its product offerings, and develop its tech-
nology stack. Arti Singh & Ranjani Raghavan
NEw dElhI/mumbAI
S
Togai raises $3.1 million in seed equoia Capital on Tuesday spun off and
rebranded its India and South East Asia
round led by Together Fund (SEA) unit as Peak XV Partners as part of
ISTOCK
a global restructuring. The unit, the
largest venture capital firm in the
region, manages more than $9.2 billion of assets
across 13 funds.
As part of the restructuring, Sequoia’s US-Eu-
India’s internet economy may
rope unit and China unit will also operate under
different brands.
Peak XV will operate as a fully independent
hit $1 tn by 2030, says report
firm, the VC firm said in its statement. It will con-
tinue to back founders from its current funds, Staff Writer
which include $2.5 billion (₹20,000 crore) of feedback@livemint.com
uninvested capital. NEw dElhI
Bengaluru: Business-to-business (B2B) SaaS platform “The rebranding has come after Sequoia Capi-
I
Togai has raised $3.1 million (₹25.6 crore) in a seed tal (US/Europe), Sequoia China, and Sequoia It will continue to back founders from its ndia’s internet economy is
funding round led by Together Fund. The round also India and Southeast Asia have decided to become current funds, which include $2.5 billion of expected to grow to $1 tril-
saw participation from VC firm BoldCap, Core91, and independent firms with distinct brands,” the VC uninvested capital. BLOOMBERG lion by 2030 from $175 bil-
angel investor Prasanna Shankar (Rippling). The funds firm said in a statement. Sequoia China, which lion in 2022, according to a
will be used for product development and expanding contributed about 50% of the firm’s global reve- These conflicts have come up in the past as joint report by Google, Tem-
into new geographies. nue, has been rebranded HongShan. well, a second person aware of the development asek and Bain & Co., released
According to a person familiar with the devel- said. “Also, this created a lot of confusion among on Tuesday.
opment, the India-SEA unit is rebranding with founders, and more so since covid, as to whether The report, based on sur-
Saama Capital leads $1.5 mn pre- “immediate effect”, even though the venture to reach out to the US entity or the India entity,” veys of consumers and inves-
capital firm has set a deadline of 31 March 2024 the person added. tors, said that digital consump-
Series A funding round in Koparo for the rebranding. This also means “no more This has led the leaders of each business to col- tion is driving growth in key
Bengaluru: Direct-to-consumer (D2C) cleaning products brand profit-sharing” after 31 March 2024. “This is lectively decide to move to fully independent internet economy sectors,
Koparo has secured $1.5 million (₹12 crore) in a pre-Series A fund- under discussion and can happen partnerships with distinct brands in order such as e-commerce, online
ing round led by Saama Capital.The round also saw participation sooner,” the person said on condition to serve founders and limited partners travel, food delivery, and ride- Growth in the digital economy will also make India a more
from Fluid Ventures and M Venture Partners along with new of anonymity. in the best manner, Sequoia said in a hailing. attractive investment destination in the coming years. ISTOCK
angels Rajesh Sawhney (GSF Accelerator), Sridhar Sankararaman
(Multiples PE), and Ramesh Menon (Ex-Future Group, Hyper-
Over the years, the strategies for
Sequoia Capital (US-Europe), 400
No. of startups
statement.
As an independent entity, Peak
By 2030, the internet econ-
omy’s contribution to India’s ments by businesses, and digi- 40% of the digital GMV, fol-
city) along with existing investors DSG Consumer Partners. The Sequoia China and Sequoia India- XV also aims to go global. “The big- technology sector will grow to tal democratization with the lowed by B2B sectors and
proceeds will be deployed to expand offline presence, branding SEA have diverged, and the scale Sequoia India & gest opportunity is artificial intelli- 62% from 48% in 2022. It will India Stack -has placed India at SaaS,” he added.
and product development. and market leadership across dif- SEA has backed gence. There are so many compa- also account for 12-13% of a turning point in its digital Ghosh expects traditional
ferent geographies has “started to nies coming into the US and India India’s GDP, up from 4-5% in transformation,” said Sanjay businesses and MSMEs to
result in brand confusion and portfolio collaboratively. We could not invest in 2022, the report claimed. It Gupta, country increase invest-
Damroo raises seed capital from conflict,” the VC firm stated. India because somebody in the US is doing attributed the surge in the head and vice pres- ments in digitiza-
For instance, Sequoia’s China fund has it. Portfolio conflict was becoming a huge reason, internet economy to rising ident, Google tion and adopt new
Marwari Catalysts, others invested in Byte Dance, while the India fund has due to which it was not possible to operate digital demand in tier 2+ cities, India. business models to
Bengaluru: Regional and independent music-focused stream- a similar investment in peer Josh. beyond a point. If I don’t invest in such opportu- digitization of traditional busi- Parijat Ghosh, managing cater to tech-savvy consumers.
ing platform Damroo raised an undisclosed amount in a seed The Porter investment in India competes with nities, I can’t get my LPs a good return,” the sec- nesses, and the success of partner of Bain and Co. (India), Growth in the digital econ-
funding round from Marwari Catalysts, and others. The company China’s Lalamove, while India’s Clevertap com- ond person added. India Stack. said that India’s internet economy will also make India a
plans to use the funding for developing its technology stack, petes with US’s Kahuna. Similarly, India’s Dhruva “Further, with all three regions growing larger, “Three foundational forces- omy is expected to grow six- more attractive investment
branding, user acquisition, content creation and hiring talent. competes with the US fund’s investment in the exposure of LPs in one fund is very high.” deepening consumer digital fold over the next decade. destination in the coming
(Compiled by K. Amoghavarsha) Cohesity. adoption, technology invest- “B2C e-commerce will drive years.
Discover the exciting possibilities of advanced

technologies as top experts and innovators
gather to discuss the changing digital landscape
of India at this year's most-awaited event.
Guest of Honour
Summit and Awards
Mobile to AI: Taking a digital quantum leap Rajeev Chandrasekhar
Hon'ble Union Minister,
State for Electronics and
9th June | Bengaluru
Information Technology
Eminent Speakers
Pramod Varma Dilipkumar Khandelwal Amod Malviya Umang Bedi Divya Manchanda Annie Joyce Beerud Sheth Vidhya Veeraraghavan
CTO, EkStep MD & CEO, Deutsche India, Co-Founder, Co-Founder, Chief of Airworthiness, Deputy Director General, CEO and Co-founde, VP & Head, Analytics,
Foundation, Global CIO, Corporate Udaan VerSe Innovation The ePlane Co. UIDAI Gupshup Standard Chartered Bank
Co-Chair CDPI.dev Functions, Deutsche Bank
And many more....
Partners
Scan the
QR code to
register
#DIS2023

MuMbai CORPORATE LIVEMINT.COM
ALL EYES ON RBI GOVERNOR;

STATUS QUO ON RATES LIKELY
‘Cos must act to check
EXPERT
plenty of good news in the price, the bar is very
high for yet another surprise MPC on 23 June.
Admittedly, the lagged impact of past rate hikes
toxic office behaviour’
is working through the economy, and inflation
VIEW is headed lower, at least cyclically. But the MPC OpenAI Inc. chief executive
may seek a bit more evidence to confirm a dura- Sam Altman AFP
C H U R C H I L B H AT T ble fall in CPI to ~4% levels. The domestic econ- Employees share the details online instead of complaining officially
Respond to this column at
feedback@livemint.com
omy is in great shape, and growth requires little
immediate policy support. This gives the MPC
Devina Sengupta & Shayan Ghosh
ChatGPT
the luxury to remain in a ‘wait and watch’ mode.
Since the market isn’t expecting a rate cut devina.sengupta@livemint.com maker
A
sset prices moving in a trend will con- immediately, a status quo on rates will be a non- MuMBAI
tinue to move in the direction of the event. The best case for the June policy is a
OpenAI to
T
trend unless acted upon by a disagreea- softer ‘stance’ by the MPC. The current policy he suspension of a senior HDFC
ble surprise. Going into the 23 April Monetary stance of ‘withdrawal of accommodation’ has Bank executive after a video of
Policy Committee (MPC) meeting, the bond
market had doubts about whether the trend of
already run its course, with pandemic-era policy
accommodation behind us. In our view, it’s a
him berating juniors has sparked
a debate on toxic behaviour at
stay private
policy rate hikes was over just yet. After all, matter of time before the MPC moves to a ‘neu- workplaces, primarily involving
despite six consecutive policy rate hikes— tral’ stance. If delivered in June, a stance change stressful jobs in sales. Bloomberg
amounting to 250 bps of policy tightening, will likely be accompanied by an unambiguous Hostile workplace behaviour and the feedback@livemint.com
headline consumer price inflation (CPI) was still message suggesting that “a neutral stance breakdown of redressal mechanisms have
O
hovering above 6%. While consensus was that favours no policy direction and the policy prompted aggrieved employees to feel penAI Inc. chief exec-
yields had more or less peaked, markets had remains data dependent”. Unless supplemented more comfortable sharing details of mis- utive Sam Altman said
pencilled in a final 25 bps rate hike in what was by a hint of a policy pivot, such a guarded conduct online than register an official he’s not interested in
to be the MPC’s final strike. So, when the MPC change in stance, too, may fail to provide any complaint, consultants working on anti- taking the artificial intelli-
opted for a status quo policy in the April meet- lasting impetus. harassment committees said, adding man- gence startup public because
ing, it surprised the market, albeit a pleasant Sometimes, being agements need to take note as more cases he wants to maintain full con-
one. The domestic predictable is the come to the fore. trol over the technology as it
When prepared for bad news, ‘no news is economy is in best that a policy can HDFC Bank, India’s largest private sec- becomes more powerful.
good news’. It’s just a ‘pause’ and NOT a ‘pivot’,
said the MPC. But tell that to a market that had great shape, and deliver. This is not to
say that the market
tor lender, on Monday suspended the exec-
utive seen screaming at his subordinates in HDFC Bank, on Monday, suspended a senior executive for berating juniors MINT
“When we develop superin-
telligence, we’re likely to make
just dodged a rate hike. Bond prices rallied, and growth requires enthusiasm around a the undated group video call, citing alleged some decisions that public
yields fell. This relief rally was further bolstered little immediate policy pivot will fade. inability to meet sales targets. is aggressively chasing fresh deposits. It has quette, experts said. This includes report- market investors would view
by a consecutive fall in headline CPI to 5.7% and policy support Instead, participants “This seems to be a case of workplace set an ambitious target of raising ₹1 trillion ing to company’s human resources depart- very strangely,” Altman said at
then to 4.7% in the following months. In addi- will look at every misconduct and harassment, abuse of in deposits every quarter, and raised ₹1.5 ment and harassment panels about offen- an event in Abu Dhabi on
tion to statistical effects, the fall in CPI was also upcoming economic authority, aggressive and rude language trillion in March quarter, of which ₹1.07 sive behaviour, and not turning to social Tuesday.
aided by continuing moderation in seasonal data for validation of the pivot narrative. with threat to harm and creates a hostile trillion was from retail customers.Consult- media as a grievance redressal mechanism. “I like being non-con-
momentum. A benign inflation trajectory cou- Depending on the weight of incremental evi- work environment,” said Aparna Mittal, ants say that profiles like sales in banking, “We have a media policy in place which flicted,” he added when asked
pled with the narrative of a global slowdown dence, it will continuously keep re-pricing the founder of Samāna Centre for Gender, Pol- finance, insurance, hospitality and health- defines guardrails on what can be shared about his own lack of equity in
meant that bond markets could play the odds of timing and magnitude of the expected policy icy and Law. care are likely to exhibit aggressive and how employees are expected to con- the company, “and I think the
an earlier policy pivot. pivot. The path to lower yields will not be a “Basis a preliminary enquiry behaviour in workplaces. duct themselves on social media. In case of chance that we have to make a
But this narrative explains only a part of the straight line. In the absence of a major global in the matter, the concerned Nirmala Menon, founder of any direct breach of our media policy, dis- very strange decision someday
30 bps fall in the 10-year government bond
yield. In fact, the bulk of the move was caused by
risk event, we may be in for a prolonged policy
pause. While it may test the market’s patience,
employee has been sus-
pended and a detailed inves- ₹1 tn
HDFC Bank set this
Interweave Consultancy, ciplinary action can be taken depending on
which works on work-life the magnitude of the breach,” said Adarsh
is non-trivial.”
Altman also emphasized his
a one-off spurt in demand for government this by itself may not be enough to derail the tigation has been initiated, issues in companies, said Mishra, chief human resources officer for willingness to work with regu-
bonds (G-Sec) from insurance companies and narrative. Most likely, the trend of lower bond which will be undertaken as target for deposits “toxic behaviour” will push Panasonic Life Solutions India. lators to develop frameworks
mutual funds amid extraordinary sales in the yields is here to stay. At least, until it isn’t. A wise per conduct guidelines of the every quarter employees to alter data to A senior partner at a Big Four audit firm to reduce potential harm from
final quarter of FY2023. The move was further Investor once said, “When trends change, we bank,” an HDFC Bank spokes- avoid harassment, even for a in India said the pandemic has fuelled a lack AI. Abu Dhabi is the latest stop
accentuated by less than indicated SDL borrow- change our opinion. And then we wait for the person said. short time. As the world of trust in management. “Earlier, one could in a weeks-long world tour
ing (yet again), large G-Sec redemptions in facts, sir!” The spokesperson said HDFC embraced virtual working modes fol- walk up to seniors and complain to col- that’s taking Altman across
1QFY24 and higher than budgeted RBI divi- Bank has a zero-tolerance policy for any lowing the outbreak of covid-19 pandemic, leagues; but now, over last few years, very Europe, the Middle East and
dend. The author is the executive vice president and form of misconduct at workplace, and several cases of harassment surfaced, few know who their support teams are. The Asia, meeting lawmakers and
We are now at a juncture where bond markets debt fund manager at Kotak Mahindra Life firmly believes in treating all employees prompting companies to train staff on need to register a complaint over email officials who are beginning to
have priced in not only the peak in rates but also Insurance Co. Ltd. The views and opinions with dignity and respect. online meeting protocols. Though many does not help with trust factor that they will create rules to govern AI tech-
an ensuing policy pivot. Interest rate swaps are expressed in the column are personal and do not The bank, which is in the final stages of a companies retu-rned to physical offices or be protected,” said the senior partner, who nologies.His comments at
currently pricing in more than 50 bps of rate necessarily reflect the opinion of the organization merger with mortgage financier Housing have adopted hybrid work, there needs to consults on workplace, compensation and public events along the way
cuts by the end of this financial year. With or the Kotak group. Development Finance Corp. Ltd (HDFC), be repeated reminders on workplace eti- succession planning. have been closely scrutinized.
‘India is a Brickwork’s licence Byju’s dollar loan default may spark lender action
fantastic cancellation reversed FROM PAGE 1 companies of the borrower, as invoice for the interest pay-
potential FROM PAGE 1 Regulations, 2008, require

itworthiness.
The company attributed its
typically, a cross-default event
would cover borrowing by
such entities,” Jimmy said.
ment.
Earlier, on whether the
company considers this as a
market but Sebi to pass appropriate
and failure to document meet- orders.
action to a series of “predatory
tactics” by lenders led by Red-
Byju’s has named several
entities, including its US
default, a Byju’s spokesperson
said it is constrained from
ings with management and “In our opinion, the order of wood. Byju’s said these game-based learning platform making any payments because
taxes high’ undertake site visits as the rea- cancellation of the licence for
sons for its decision to cancel the violations committed by
included threatening to seize
the management of its US unit
Osmo (Tangible Play Inc.), its
Singapore holding entity Byju
of “the unlawful acceleration
of the loan on the basis of
the licence. The rating com- Brickwork is unjustified and is Byju’s Alpha Inc. and demand- Pte Ltd and its higher educa- alleged technical default, fail-
PTI pany also failed to undertake not commensurate with the ing it make early repayments. tion subsidiary Great Learning ure on the part of the loan
feedback@livemint.com an independent analysis of the alleged violations,” said the “Given that legal proceed- Pvt. Ltd as initial guarantors in agent to provide the interest
IsTAnBul projection provided by the 15-page order by SAT. ings are now on foot in both The company attributed its action to a series of “predatory its loan agreement. In India, invoice and calculation and
issuer, according to Sebi. The order comes 7 months Delaware and New York, it is tactics” by lenders led by Redwood. MINT WhiteHat Jr. (WhiteHat Edu- refusal to provide a list of len-
I
ndia is a fantastic potential In its ruling, SAT directed after the market regulator, on clear that the entire TLB is dis- cation Technology Pvt. Ltd) ders and their holdings to
market for aviation but not a Sebi to pass fresh 6 October 2022, puted. As such, Byju’s cannot have wider implications on company also failed to get its and Think & Learn Pvt. Ltd are undertake KYC as per applica-
cheap market to operate as orders on the In its ruling, SAT directed the rat- be expected to and has elected Byju’s and could trigger action loans rated, causing another guarantors. ble law.”
taxation is higher in the coun- quantum of pen- directed Sebi to ing firm to wind not to make any further pay- against some group entities as breach. Lender action may begin A partner at BTB Legal,
try than in many other places, a l t y t o b e pass fresh orders down operations ment to the TLB lenders, well, lawyers said. Lenders sued Byju’s in Dela- with a notice to the parent and Xerxes Antia, said the location
international airlines’ grouping imposed on on the quantum w i t h i n six including any interest, until “Typically, a US TLB default ware on 8 May and asked the the loan guarantors to repay of the assets, as well as the sen-
IATA’s chief Willie Walsh said Brickwork other months. It also the dispute is decided by the would result in lenders accel- court for permission to take within a certain stipulated iority of debt, would be critical.
of penalty to be
on Tuesday. than the cancella- restrained the court,” the company said. erating the loans and taking control of Byju’s Alpha, alleg- period before action is initi- “While overseas lenders
During a media briefing tion of the licence imposed on company from Byju’s will remain open to enforcement action,” said ing a sum of $500 million was ated against the entities, law- may have several options in
here, Walsh also highlighted after providing Brickwork taking any new discussions with lenders and Joseph Jimmy, partner, law missing from the company. yers said. case of a default—both con-
the scale of the economy and Brickwork with clients or fresh “is ready, willing, and able to firm Trilegal. Under loan “It (the default) could also “Guarantees can be tractual and those available to
investments going into airports an opportunity mandates after continue making payments agreements, lenders can accel- risk jeopardizing the cash invoked, failing which the bor- lenders under Indian law—
in India. The International Air for a hearing. the order was passed. under the TLB if the lenders erate loans—or demand that flows due to the borrower. rower and guarantors could be exercise of these options will
Transport Association (IATA) is “The tribunal’s order is Sebi held Brickwork failed withdraw their ill-conceived the borrower pay up the entire Such default would often subject to insolvency action. If necessarily have to take into
a grouping of more than 300 likely to be appealed before to exercise proper skill, care, actions and honour the terms sum immediately—under cer- result in cross-default across guarantees are defaulted, the account several factors,
airlines, including Air India, the Supreme Court,” said a and diligence while discharg- of the agreement”, the com- tain conditions. other loans of the borrower, lenders could also file an insol- including the nature of secu-
IndiGo and SpiceJet.While senior counsel familiar with ing its duties. However, in its pany said. In Byju’s case, lenders accel- and it is likely for other lenders vency application against the rity available to such lenders,
responding to a query about a the matter. interim order on 14 October Following the default, the erated the $1.2 billion loan on 3 and bondholders of the bor- parent in India,” Jimmy said. the priority of their loan and
possible duopoly in the Indian Citing SAT’s earlier order in 2022, SAT stayed the cancella- TLB crashed from 79 cents to a March after the company rower to call an event of Byju’s declined to comment limitations under Indian laws
airline market, Walsh said the matter of Jindal Cotex Ltd tion of the licence but allowed dollar to 65.5 cents, according failed to file its FY22 state- default. This could also have on the guarantors. A person on restructuring/rescheduling
there is “plenty of scope for and others vs Sebi, the tribunal the restraint on the onboard- to Bloomberg data. ments due in September, a an impact on loans taken by aware of the matter said the overseas borrowings,” said
others (airlines) to compete in held that Sebi (Intermediaries) ing of new clients. The development is likely to breach of a loan covenant. The group companies and holding lenders are yet to issue an Antia,” a partner at BTB Legal.
the market”. “What you have in
India is a fantastic potential
market. You look at the scale of
the economy, investments
going into airports... (but) India
is not a cheap market to oper-
Adani Group set to obtain ₹14,000 cr credit line for Mundra Petrochem
ate. “Taxation in India is higher
than most places in the world. I FROM PAGE 1 tium, the people cited above ated based on the future cash per annum, requiring 3.1 mil- India produced about 1.45
think there is a lot of potential said. While most of the funds flow and finance. Pending the lion tonnes per annum of coal million tonnes of PVC in 2022
in India,” he said. investment activities, including may come from state-run len- evaluation, the group decided that will be imported mainly and imported an additional 1.5
India is one of the fastest- the petrochemical project, pri- ders, private lenders will lend to keep the major equipment from Australia and Russia. million tonnes, data from the
growing aviation markets glo- oritizing debt repayment and at least ₹4,500 crore via the procurement and site con- The Mundra Petrochem Alkali Manufacturers Associa-
bally. Meanwhile, Walsh also de-leveraging the balance consortium, they said. struction activities at Mundra project may become one of the tion of India showed. Mundra
said that he has no sympathy sheets of group companies According to Adani Group’s Petrochem on group’s mainstay Petrochem aims to turn India
for airports and that they are instead, to assuage investor latest plan, the group will seek hold. However, While most of the businesses as it into a net exporter of PVC.
profitable all the time.“Airports concerns raised by a 24 Janu- an additional $2 billion for the with the financial funds may come may fill a critical At the group level, Adani
try to convince people that ary report on the group by US Mundra project after fully util- closure of the from state-run gap in the coun- aims to boost its operating
every new passenger I get short-seller Hindenburg izing the initial $2 billion sanc- Mundra Petro- banks, private try’s PVC indus- profit and lower leverage from
Research. tioned, the second person said. chem project
means I have to increase my
banks will lend at try. PVC is the 4.1 times now to 3.2 times by
charges. That is complete non- “The financial closure for “The first disbursement approaching, third-most widely March 2024. In line with this
sense. The more passengers Mundra Petrochem is likely to amount from the sanctioned work is expected least ₹4,500 cr via produced syn- strategy, the group on Monday
you get, the lower your cost be completed by mid-June, limit of domestic banks for Adani Group is banking on the Mundra Petrochem project to to resume at full the consortium thetic polymer of said it completed the repay-
should be. What we have seen following which the commis- Mundra is likely to come to boost its operating profit and lower its leverage. AP throttle, the two plastic in the ment of $2.65 billion in debt.
with airports is very high sioning activity, including Adani Group in the second people said. world, after poly- Adani Group cut promoter
returns on capital way in excess equipment procurement and week of June,” the first person bursal,” the first person said. leverage. Group flagship Adani ethylene and polypropylene. pledges and made bond repay-
of the cost of their capital,” he site construction, will com- said. The group is banking on the The group told exchanges in Enterprises Ltd incorporated Its applications range from ments worth $3 billion in the
said. mence,” the person said. Some of the lenders have Mundra Petrochem project, February that it was “re-evalu- Mundra Petrochem in 2021 to making pipes and flooring to three months ended 31 March,
Further, Walsh said that Queries sent to an Adani met Adani Group officials located on Adani Ports and ating various projects being set up a coal-to-PVC plant. insulation on electrical wires, using the $1.88 billion equity
India needs to recognise that Group spokesperson on Mon- recently, according to the two Special Economic Zone Ltd’s implemented at the group The Mundra Petrochem manufacture of bottles, non- funding from GQG Partners
the real advantage will come in day did not elicit a response. people. “The lenders may con- land in Gujarat’s Mundra, to level in different business ver- plant, once commissioned, food packaging, food-covering and an additional $1 billion
by making fares cheaper for At least half a dozen local duct a review of the group boost its operating profit over ticals.” Adani said some of the will have a PVC production sheets, and important plastic infusion from the promoter
more and more people to fly. banks are part of the consor- before dispensing the first dis- the coming years and lower its projects were being re-evalu- capacity of 2,000 kilotonne cards. group.
LIVEMINT.COM CORPORATE Wednesday, 7 June 2023

MuMbai 07
Serentica
inks 2.5 GW NSE thwarts BSE’s volumes
renewables
supply deal
bid with expiry day change
Rituraj Baruah
rituraj.baruah@livemint.com
Expiry of Bank Nifty derivatives on Friday, after BSE’s earlier move on weekly Sensex, Bankex
S
erentica Renewables
India Pvt. Ltd, backed by RHFL debenture holders have issued a legal notice to BoB for
KKR, has signed deals to Ram Sahgal disregarding the directives issued in a recent SC ruling.
Checkmate MINT
supply 2.5 gigawatt (GW) of ram.sahgal@livemint.com
renewable energy to commer-
cial and industrial consumers,
MuMBAI
Analysts say the move could reduce
volatility and increase volumes on
the NSE. Rel Home NCD
I
said director Pratik Agarwal. n a strategic move aimed to neu-
Average daily turnover in FY23 (in ₹ trillion)
This move follows the firm’s
announcement of a definitive
agreement with KKR to secure
tralize any potential competition
from its rival and Asia’s oldest stock
exchange BSE Ltd, India’s largest
Cash
153.5
Derivatives
holders claim BoB
a $250-million funding. stock exchange NSE has decided to
With this, Serentica is set to
achieve an installed capacity of
4 GW. All projects under both
revise the expiry date of its monthly
and weekly Bank Nifty derivative con-
tracts.
1.38
flouted SC order
the phases would cost around Effective 7 July, the new expiry date Priyanka Gawande subscribed to the non-converti-
$3 billion, Agarwal said. In the will be shifted from Thursday to Friday. 0.53 0.04 priyanka.gawande@livemint.com ble debentures issued by Reli-
first phase the firm is installing However, the NSE will continue to MuMBAI ance Home Finance but did not
1.5 GW renewable energy pro- maintain the Thursday expiry date for get the redemption amount.
T
jects to cater to C&I customers. its weekly and monthly Nifty deriva- he debenture holders of Since then, these investors
“We have closed contracting tives. Reliance Home Finance have been locked in a legal tus-
NSE BSE
for entire phase I of the capex The move by NSE comes after BSE Source: Exchanges
Ltd (RHFL) have issued a sle with the public sector len-
programme of ₹10,000 crore, recently altered the expiry day of its (L to R) BSE CEO Sundararaman Ramamurthy, NSE CEO Ashishkumar Chauhan. legal notice to state-owned der as well as Reliance Home
and are now looking to com- weekly Sensex and Bankex deriva- SATISH KUMAR/MINT
Bank of Baroda (BoB), accusing Finance before various courts
plete phase-I within the stipu- tives contracts from Thursday to Fri- kumar Chauhan, who had led the BSE The BSE, a minnow in the deriva- ity surrounding them specifically on it of engaging in foul play, and and tribunals. The letter also
lated time mentioned in the day, in an effort to attract more trad- earlier. tives segment against NSE’s domi- Fridays. disregarding the directives alleged that “the bank is a part
contract,” he added. ing volumes. BSE’s strategic move is Apart from eliminating any trace of nance, has so far made several Consequently, Friday trading is issued in a recent Supreme of a multipronged fraudulent
The projects under both the presumed to be the idea of its new competition, the move could reduce attempts to capture market share from expected to mitigate volatility in Court ruling. scheme”.
phases will be commissioned managing director and chief execu- volatility and increase volumes on the its dominant peer, but failed to make Nifty futures and options, which “BoB, the lead bank of the This, the debenture holders
within 12-24 months. “Phase I tive officer Sundararaman Rama- NSE, they added. any impact on traders. It had floated a expire on Thursdays. inter-creditor agreement con- alleged, involved submission of
required us to have 1.5 GW of murthy, who had taken charge in “The move is a masterstroke which, liquidity enhancement scheme, where Mint’s queries to the NSE and BSE sortium, not only participated incorrect information to the
capacity, and in phase two an January. besides making short work of compe- members offering two-way quotes remained unanswered till press time. but also ensured the Supreme Supreme Court which led to
additional 2.5 GW, taking our To enhance its presence in futures tition and continuing NSE’s domi- (buy and sell) were incentivized, but it Chandan Taparia, head, derivative Court order is breached with over 17,109 retail debenture
installed capacity to 4 GW.” and options (F&O), the BSE research, Motilal Oswal Financial impunity and retail debenture holders getting paid 100% of
Serentica‘s capacity installa- announced on 15 May the reintro- STRATEGIC MOVE Services, said the move will free up holders are duped of rightful their dues, whereas 2,311 retail
tion for new the power supply duction of weekly and monthly client margins and potentially entitlement of redemption at debenture holders did not get
agreements in phase-II will be Sensex and Bankex contracts, NSE’S move is MARKET analysts NSE will continue to BSE has so far made increase volumes on both Nifty and full face value,” they said. their dues.
funded by the capital raised with the expiry date shifted to aimed to neutralize
any potential
termed the move a
“masterstroke” by
keep the Thursday
expiry date for its
several attempts to
capture market
Bank Nifty derivative on both days. A copy of the legal notice was In 2017-18 Reliance Home
from the second round of the Friday instead of Thursday, as fol- competition from NSE’s Ashishkumar weekly and monthly share from its Interestingly, both Ramamur- reviewed by Mint.“BoB has Finance issued NCDs worth
investment by KKR. The first lowed by the NSE. its rival BSE Chauhan Nifty derivatives dominant peer thy and Chauhan had served in played an active role in aiding ₹6,610 crore which were sold to
round of agreement was for an “Our Sensex contracts have a NSE around the time of its incep- manipulative and fraudulent qualified institutional buyers,
annual supply of 3 billion units smaller lot size of ₹6 lakh against tion in 1992. Chauhan left NSE to schemes, and caused losses to or individuals. Mint had
and the second round involved ₹9 lakh on Nifty, which makes it nance, will enable more effective use didn’t work, resulting in the exchange join RIL in 2000, before moving to the clients and thousands of reported on 25 May that the
a supply of 6 billion units. Ser- cheaper for traders and investors,” of margins and reduce volatility on having to withdraw them and focus on BSE in 2009 as the deputy CEO. He other retail debenture holders debenture holders have filed a
entica, a Vedanta Group firm, Ramamurthy told Mint then. “Also, the Nifty, which expires a day ahead,” alternative arrangements to change was elevated as the CEO in 2012 and of RHFL,” it said. contempt case against the reso-
has signed deals with various the contract expiry is Friday, so said Rajesh Palviya, head, derivatives the tide. quit in July 2022 to head the NSE. All debenture holders with lution applicant, Authum
group entities for both phases, investors who focus on Nifty and and technical research, Axis Securi- Financials have 37.92% weighting The average daily turnover of deriva- investments of up to ₹5 lakh Investment and Infrastructure
he said. The company’s largest Bank Nifty derivatives on a Thursday ties. on the Nifty 50 index, led by HDFC tives on NSE was ₹153.5 trillion against were entitled to receive 100% of Ltd, Reliance Home, and IDBI
power distribution agreement can give their attention to these con- Palviya expects expiry day volatility Bank, ICICI Bank, Kotak Mahindra just ₹1.38 trillion on the BSE in FY23. their principal investment Trusteeship, alleging “wilful
is with Hindustan Zinc. It has tracts.” on the Nifty to reduce by 20-22% as the Bank, Axis Bank and State Bank of Following the change in expiry to Fri- under the resolution plan disobedience” of the SC order.
also inked apcts with group Market analysts termed the move a components of Bank Nifty will be more India. As these stocks also form part day, BSE’s average daily turnover rose approved by the apex court in An email query to Bank of
subsidiaries Cairn Energy and “masterstroke” by NSE managing active on Friday rather than when the of the 12-member Bank Nifty index, to ₹24,093 crore in June from ₹1,167.91 its 3 March order. The notice Baroda remained unanswered
Sterlite Copper. director and chief executive Ashish- Nifty expires on Thursday. analysts anticipate heightened activ- crore in May. was issued by those who had till press time.
MUNICIPAL CORPORATION OF GREATER MUMBAI GREATER MUMBAI MUNICIPAL CORPORATION DELHI JAL BOARD, (Govt. of N.C.T. of Delhi)
K.E.M.HOSPITAL, PAREL, MUMBAI - 400 012. Advertising of expression of interest OFFICE OF THE ADDL.CHIEF ENGINEER (C)-5
E- TENDER NOTICE THROUGH EXECUTIVE ENGINEER (C) DR-III
Subject: Regarding filling up of vacant posts in category “D” under Kanhaiya Nagar, Delhi - 110035
No. KEM/1071/AEME Dated. 06.06.2023 Public Health Department through NGO on contract basis. Phone: 011-27394876, Email: eecdr3@gmail.com MATRIMONIALS
This is an E-Tender Notice. The Municipal Commissioner of Greater Fill vacant posts in category “D” through Squatters Colony NIT NO.06 (2023-24) (Re-invitation)
Mumbai invites E-Tender for the following work on” Item rate basis”. S. Name Of work Amount Put to EMD
Non-Refundable Date of Last date/
Maternity Home Department in K East through voluntary GROOMS WANTED
Subject- SITC of Medical Isolation Panel with inbuilt fire No. Tender (Rs.)
Tender processing Release time of
prevention system in various departments in KEM Hospital. organization (excluding savings group) The purpose of establishing
(Rs.) fee of Tender/ receipt of
institutions is to provide employment to their members. Pf /Esic (Rs.) Tender Id. tender
Sr. Name of the work Earnest Cost of Bid Bid registration is compulsory of firm. BRAHMIN
1 Construction of chambers for House Sewer 63,33,03,190/- 73,33,100/- 1500/- 02.06.2023 / 23.06.2023
No. Money E-Tender Start Date End Date
We are requesting the applicant to prepare his application and Connections for Sant Nagar GOC falling under 2023_DJB_ upto
Deposit Rs & Time & Time DEL/NCR BSD SM4 31/5'2"/Fair
Coronation Pillar Catchment area in Delhi. 242242_1 3.00 P.M
Rs apply for selection. Sample of application is given at the Squatters MD(HOM)/A.Mglk Del Girl, wrkg MNC
Further details in this regard can be seen at https://govtprocurement.delhi.gov.in as AM(Pharma Anlytics), 18LPA,
1. SITC of Medical 348800/- 11500/- 07.06.2023 22.06.2023 Colony Maternity Office 07/06/2023 to 13/06/2023 can be found 9899623735, vka87@aol.com
Isolation Panel in PLUS (17:00 Hrs) (17:00 Hrs) from 10.30 am to 01.30pm. End date 13/06/2023. (Unit noon 03.00) ISSUED BY P.R.O. (WATER) “Stop Corona: Wash Your Hand, Wear Mask,
Advt. No. J.S.V. 55(2023-24) Maintain Social Distancing” EE(C) DR-III
various departments 18% GST Applications filed after the stated office period will not be
at KEM Hospital. considered.
Bid No-7200030556
Sd/-
The intending tenderer shall visit the Municipal website at Medical Officer I/O
http://portal.mcgm.gov.in for further details of the tender. Tenders shall note Squatters Col. Mat. Home
PRO/624/ADV/2023-24
that any corrigendum issued regarding this tender notice will be published on
the MCGM portal only. No corrigendum will be published in the local Keep the terraces clean, remove odd articles/junk/scrap.
newspapers.
The tender documents will not be issued or received by post.
Sd/- BRIHANMUMBAI MUNICIPAL CORPORATION

PRO/630/ADV/2023-24 Dean (KEM) Hospital TREE AUTHORITY
Keep the terraces clean, remove odd articles/junk/scrap. -PUBLIC NOTICE-
In accordance with the provision under section 8 (3) (C) of the
Maharashtra (Urban Areas) Protection & Preservation of Trees Act 1975
(As modified upto January 2018) 01 proposal form ‘A’ ward in Zone - I,
01 proposal form ‘G/South’ ward, in Zone - II Total 02 proposals are
received for getting approval of Tree Authority / Municipal Commissioner,
Chairman, Tree Authority for removal of trees.
The information of the trees for cutting / Transplanting in above
MUNICIPAL CORPORATION OF GREATER MUMBAI mentioned proposals is available on mcgm website www.mcgm.gov.in
Chief Engineer, (Mechanical & Electrical)’s Department About us ward / Department Department manuals Gardens & Tree
No. E.E.MECH/ 856 /REF DT. 05.06.2023 Authority 240 - Adv - 7 days - Z - I, II
On account of pandemic Covid - 19, citizens are requested to
E-TENDER NOTICE send the objections/ suggestions on Email -sg.gardens@mcgm.gov.in
Department : Ch. Eng.(M&E) on or before Dt.15/06/2023 only instead of attending hearing
Sub-Department : Dy. Ch. Eng. (M&E) City / Ex. Eng. personally on Dt.15/06/2023 Objections / suggestions received after this
Mech.(Refrigeration) date will not be entertained which may please may noted.
Bid Numbers : 1) 7200053469 Supdt.of Gardens & Tree officer of the Tree Authority
: 2) 7200053463 Penguin Building, 2nd Floor Veermata Jijabai Bhosale Udyan
: 3) 7200053733 Dr. Ambedkar Road, Byculla (E), Mumbai-400 027.
: 4) 7200053760 Tel. No. - 23742162
Subjects : 1) Comprehensive Servicing and Email - sg.gardens@mcgm.gov.in
Maintenance Contract for Voltas make Sd/-
Air Conditioning and refrigeration
PRO/626/ADV/2023-24 Supdt.of Gardens & Tree Officer
plants in BMC for the period from
01.10.2023 to 30.09.2026. Let’s together and make Mumbai Malaria free.
E.E.Mech./Ref./T-21 dated 05.06.2023
2) Comprehensive Servicing and
Maintenance Contract of various types
of AC units at various locations in BMC
for the period from 01.10.2023 to
30.09.2026.
E.E. Mech./Ref./T-22 dated 05.06.2023
3) Comprehensive Servicing and
Maintenance Contract of Air MUNICIPAL CORPORATION OF GREATER MUMBAI
Conditioning system at Annabhau Advertising of expression of interest
Sathe Auditorium in Campus of V.J.B.
Udyan for two years. Sub : Regarding filling up of vacant posts in category “D” under
E.E. Mech./Ref./ T- 24 dated Public Health Department through NGO.
05.06.2023 R / Central public health department willing to fill vacant posts
4) Replacement of AHU,s with complete in category “D” through NGOs on contract basis. (Their members
design work at Opthal & Septic OT of
KEM Hospital. should be employed) We are requesting the applicant to prepare his
E.E.Mech./Ref./T-25 dated 05.06.2022 eligibility and apply for the job. Application Form R / Central public
Bid Start Date & time : 07.06.2023 at 11:00 a.m. health department can be available from 10.30 to 01.30 pm date
Bid End Date & time : 27.06.2022 at 16:00 p.m. 07/06/2023 to 13/06/2023 Interested organizations should contact
Pre Bid Meeting : 14.06.2023 at 15.00 p.m. the public health Office R central for more details,
Website : http://portal.www.mcgm.gov.in application and affidavit samples It should be noted that institutions
Contact Officer Name : Shri. A.K.Jambhore working in other departments in the R/Central Ward will not be
eligible for the draw if they, do not apply. The deadline for the
Land line No. : 022-23096433
application is 13/06/2023 (Until 03:00 PM) Applications filed after
Mobile No. : 9930128387
Email- id : eemechref.me@mcgm.gov.in
the stated office period will not be considered.
Sd/-
Sd/- Medical Officer of health
(A.K.Jambhore)
PRO/614/ADV/2023-24 E.E.Mech. (Refrigeration) PRO/618/ADV/2023-24 R/Central Ward
Keep the terraces clean, remove odd articles/junk/scrap. Let’s together and make Mumbai Malaria free.


MuMbai CORPORATE LIVEMINT.COM
Honda’s new SUV aims Tata Consumer to enter new categories

Suneera Tandon karan said.
to Elevate sales by 35% suneera.t@htlive.com

nEw DElhI
The company’s innovation
to sales ratio is at 3.4%, up from
0.8% in FY20. “We invested in
T
ata Consumer Products building fit for future capabil-
is undergoing a transfor- ity in R&D, and stepped up the
mation to establish itself pace of innovation, launching
as a comprehensive fast-mov- twice the number of products
ing consumer goods (FMCG) compared to the last year. We
After restructuring operations, Honda Cars has been profitable for last 2 yrs company, chairman N. Chan- expanded our portfolios, and
drasekaran said at the com- entered new categories. Our
pany’s 60th annual general innovation strategy is driven
Alisha Sachdev meeting held on Tuesday. by key consumer trends such
alisha.sachdev@livemint.com The firm is not only explor- as health and wellness, conve-
nEw DElhI ing expanding to new catego- nience, and digitization. We
ries but actively seeking acqui- “Tata Consumer is definitely transforming itself to be a full- have identified platforms we
T
he local arm of Japanese auto- sition opportunities, he added. fledged FMCG company”, says chairman N Chandrasekaran. MINT want to play in, and this frame-
maker Honda Cars is making a “It is definitely transforming work has helped us accelerate
strategic comeback into India’s itself, but it can’t be done over- enue to ₹13,783 crore. Overall, but we were focused on exe- the pace of innovation and tap
rapidly expanding passenger night. It’s a process we have to India business was up 10% led cuting our strategic roadmap, into new consumption occa-
vehicle sub-segment, with the go through. Currently, we are by its foods portfolio. “ In line and building on our strong sions, thereby expanding our
launch of a new mid-sized sport utility expanding both the beverages with the company’s ambition, foundation to enable future target addressable market.”
vehicle (SUV)—the Elevate. and foods businesses. There’s we have taken decisive steps growth. Despite macroeco- TCPL has also focussed on
The carmaker expects the new product a lot of focus in the businesses, towards becoming growth ori- nomic challenges, the com- streamlining and simplifying
to propel sales by 35% in the second half of we have got to scale them. Also ented, and are building orga- pany has delivered good per- its business, he said. “Last year,
the financial year, surpassing 2021-22 fig- we’re investing in R&D, as well nizational capability. We have formance across key metrics.” we had outlined the plan to
ures, as it intends to increase production as innovation. We are looking strengthened our core busi- In FY23, it grew its direct merge Tata Coffee’s business
and focus on delivering the car during the at new categories and looking nesses, and expanded our tar- sales and distribution network with Tata Consumer Products
festive season, said a top company official. at acquisitions for those cate- get addressable market, open- by three-fold from 0.5 million to drive revenue synergies and
Elevate will face stiff competition from gories to accelerate our jour- ing up exciting opportunities outlets in 2020 to 1.5 million. operational efficiencies in
established rivals such as Hyundai’s Creta, ney towards becoming a full- for growth,” he added. The firm’s products are availa- addition to simplifying legal
Kia Seltos and Maruti Suzuki’s Grand fledged FMCG company.” “The year witnessed contin- ble across 3.8 million outlets, structures and driving cash
Vitara, in this fiercely contested segment. In FY23, the company that ued challenges due to a vola- which puts Tata Consumer in efficiencies. The merger is well
Honda has laid out comprehensive SUV sells Tata Tea and Salt, posted tile macro-economic environ- the top quartile of the FMCG on track to be completed in the
roadmap for the Indian market, aiming to Kunal Behl, vice president, Marketing & Sales, Honda Cars India, at the world premiere a 11% jump in consolidated rev- ment and geopolitical unrest, market in India, Chandrase- first half of FY24,” he said.
launch five new models, including the of Honda Elevate
Elevate, by 2030. It also plans a fully-elec-
tric model based on the Elevate by 2026. models but it’s not like we will position it will not bring them back in light of India’s
Despite its long history in India, Honda too high,” Tsumura added.
Cars India Ltd has encountered challen-
emissions reduction requirements as well
The Elevate will exclusively be available as the company’s global roadmap to elec-
ges in gaining a significant foothold in in a petrol variant, as the company expects trify two-thirds of its product portfolio by
DS Group acquires LuvIt chocolate maker
mass-market passenger vehicles segment, demand for hybrid vehicles to remain lim- 2030, and 100% by 2040.
due to its premium pricing compared to ited, with rival OEMs like Suzuki and “After some restructuring three years Suneera Tandon posted a turnover of over ₹100 Good Stuff,” it said in a state- fruit-flavoured lollipops, sug-
most original equipment manufacturers. Toyota ramping up their play in the segm- back, for the last two years we are back to suneera.t@htlive.com crore, with LuvIt accounting ment on Tuesday. ar-coated chocolates, eclairs,
Takuya Tsumura, chief executive, ent, but other SUV models Honda brings black. Business is picking up but we have nEw DElhI for 90% of the business. People in the know said that and choco snacks. “DS Group
Honda Cars India, said the only three models, Amaze, DS group’s chocolates and The Good Stuff was acquired is focusing on expanding pres-
Aiming HigH
D
automaker will price SUVs City and City HEV, especially harampal Satyapal confectionery business could for ₹30 crore. This acquisition ence in the confectionary seg-
competitively and cover after RDE regulations came in Group has announced witness five-fold aligns with the DS ment. Acquisition of LuvIt was
40-45% of total PV market HondA has laid out tHE carmaker itS global roadmap force in April. So, we are par- the acquisition of The growth over five DS group’s Group’s strategy a strategic decision to enhance
which derives sales from SUV aSUV comprehensive
roadmap for
also plans a
fully-electric model
is to electrify two-
thirds of its product
ticipating in just 10% of pas- Good Stuff Pvt. Ltd, formerly years, from ₹900 chocolates and to boost its con- the confectionary basket and
segment. The company is India, aiming to based on the Elevate portfolio by 2030, senger car market. Now, with Global CP Pvt. Ltd, a company crore to ₹5,000 confectionery biz fectionery busi- enter the chocolate segment
ramping up manufacturing at launch 5 new models by 2026. and 100% by 2040 the new SUVs we will enter renowned for its popular LuvIt crore, he added. could witness ness, and expand with an impressionable foot-
its Rajasthan facility, and 40-45% of the market. In our chocolates and confectionery. The company its distribution print. It will allow us to expand
5-fold growth
expects to hit 180,000 units estimate, in October-March, Notably, Global CP had pre- chose not to dis- network. As part our product portfolio, thereby
in annual sales in three years. Honda has in could have hybrid powertrains as well. we will grow our sales by 35% in FY23,” he viously received backing from close the financial from ₹900 cr to of the integration reaching new consumers and
been profitable for last two years and However, with rivals Suzuki and Toyota said. “We are prepared. Our production financial giants such as Mitsui details of the deal, ₹5,000 cr in 5 yrs process, LuvIt’s markets,” Kumar said in an
hopes to sustain profitability, he said. aggressively expanding their presence in last year was 540 units per day, and now it Ventures and Goldman Sachs. and clarified that team will be part interview. The deal will help
“We understand SUVs are important the segment, Honda aims to differentiate is at 660 units at our Rajasthan factory.” Rajiv Kumar, vice chairman it was bound by a of the DS group’s the group to get a foothold in
and we have to bring them to mainstream. itself by exploring hybrid powertrains as In terms of global sales, India ranks 6th of DS Group, said the LuvIt confidentiality agreement. confectionery division, it said. south India. “This will be a big
That is why we developed the Elevate for well for other new SUV models.Honda or 7th for Honda. However, in India, it has brand seeks to achieve a turn- “We can’t disclose the deal LuvIt offers a diverse range advantage, apart from giving
India, and the price must also reflect that. Cars India discontinued its diesel engines slipped to seventh place, after its sales for over of ₹500 crore within 3-5 size as we are bound by a confi- of products such as chocolates, us entry into the mass-choco-
We may price a little bit higher than some in India completely earlier this year, and May dipped 41% to just 4,660 units. years. In FY22, The Good Stuff dentiality agreement with The crunchy wafers, chocolate and late market,” he added.
ENJOY SEAMLESS READING

OF YOUR FAVORITE
Explore the largest collection of HT Brunch

e-magazines with faster page loading, vertical
page scrolling, pinch-in, pinch-out feature &
much more.
Scan the QR code to access

HT Brunch for free.

LIVEMINT.COM
Wednesday, 7 June 2023
MuMbai 09


MuMbai GLOBAL LIVEMINT.COM
m MINT SHORTS
Merck sues US,calling Biden move
Ukraine dam blast blamed on
Russia tips war into new phase
to cut drug prices ‘extortion’
Merck & Co. is suing the US over a law that will allow the govern-
ment to negotiate prescription-drug prices with pharmaceutical
companies — a reform aimed at cutting costs for elderly and disa-
bled Medicare patients that the health-care giant says is “tanta-
mount to extortion.” BLOOMBERG
TSMC tempers capex outlook to The Kremlin denied responsibility and said Ukraine was behind the blast at the Kakhovska hydroelectric plant
$32 bn as chip demand weakens
BLOOMBERG
Bloomberg Putin is waging this war,” while wheat prices surged as much as 3% on
feedback@livemint.com Poland called for “further, severe Tuesday over supply concerns,
sanctions” and NATO Secretary Gen- extending their climb from a
U
kraine blamed Russia for eral Jens Stoltenberg said the blast 30-month low last week. The dam’s
blowing up a giant dam “exposes the brutality of Russia.” destruction “looks like a big escala-
and unleashing millions Fighting has spread along the front tion with dire consequences and
of gallons of floodwater lines in recent days in the east and huge headline risk,” Andrey Sizov,
across its south, compli- south of Ukraine. The flooding will managing director at agricultural
cating fierce fighting as Kyiv’s forces force Russian troops on the other side consultant SovEcon, said in a tweet.
intensify their counteroffensive to of the Dnipro to retreat, which may The possibility of Russia blowing
oust Moscow’s troops from occupied reduce the intensity of shelling up the Kakhovska plant has been fully
territory. against territories Ukraine controls, factored into Ukraine’s military plan-
The Kremlin denied responsibility Ukrainian southern military spokes- ning, Serhii Nayev, commander of the
Taiwan Semiconductor Manufacturing Co. tempered its and said Ukraine was behind the blast woman Nataliya Humenyuk said in United Forces of the Armed Forces of
outlook for 2023 capital spending, as the main chipmaker at the Kakhovska hydroelectric plant televised remarks on the Radio Lib- Ukraine, told Ukrinform news web-
to Apple Inc. grapples with soft demand for smartphone early Tuesday as the torrent of water erty website. site.
and computing chips. Its capital expenditure should wind threatened to make tens of thousands The situation at the nuclear plant Russia carried out another wave of
up closer to the bottom end of a previously forecast $32 bil- of people homeless and renewed that’s occupied by Russia is under missile attacks on Ukraine overnight,
lion to $36 billion range, Chairman Mark Liu told reporters fears for the safety of Europe’s largest control, Ukrainian Prime Minister firing 35 cruise missiles that were all
on Tuesday. BLOOMBERG nuclear power station. Denys Shmyhal told a government intercepted by air defenses, the
Wheat prices jumped, while a sep- Since Russia’s invasion of Ukraine in February 2022, the dam has been seen as a meeting, according to a video on his Ukrainian General Staff reported on
arate blast on an ammonia pipeline potential target for its strategic importance AP Telegram channel. Facebook. Ukraine carried out 19 air
Chinese universities raise tuition shut down in the war underscored the There’s “no immediate risk to the strikes on Russian troop formations
vulnerability of key infrastructure as reclaiming occupied southern and Russia “categorically” denies any safety of the plant,” though it’s “vital” and attacked command posts, an
fees by as much as 54% the fighting enters a critical new eastern regions of the country. involvement in the destruction of the that the cooling pond remains intact, ammunition depot and artillery posi-
Chinese universities are drastically increasing tuition fees this phase. Zelenskiy summoned his national dam, which was sabotaged by the International Atomic Energy Agency tions, it said.
year, with some making their first rises in two decades, hurt by Since Russia’s invasion of Ukraine security and defense council to dis- Ukrainian side, Kremlin spokesman chief Rafael Grossi said in a state- More than 80 settlements and
a reduced national budget for tertiary education and tight local in February 2022, the dam has been cuss the damage as officials moved to Dmitry Peskov told reporters, ment. Kherson city lie within the flood zone
government finances. The higher fees come amid a financial seen as a potential target for its strate- evacuate people from dozens of according to the Interfax news ser- Ukraine separately reported Rus- which could affect hundreds of thou-
crunch among local governments after three years of disruptive gic importance. It supplies the cool- towns and villages in southern vice. sian shelling damaged the ammonia sands of people, Ukrainian Deputy
covid policies, a property crisis and a sluggish economy. REUTERS ing reservoir for the Zaporizhzhia Ukraine including the city of Kherson The Kremlin’s claims “are non- pipeline in the Kharkiv region close Infrastructure Minister Mustafa Nay-
nuclear plant and feeds into water along the Dnipro river. Russian forces sense,” Ukrainian security council to the border between the countries. yem said on Twitter. The hydro
reserves in the Crimea peninsula, in Kherson region dug in on the Secretary Oleksiy Danilov said. Russia regards the pipeline, which power station, that Russia has decou-
Iran claims to have created annexed by Russia in 2014. Ukrainian opposite bank continued shelling European leaders condemned was closed down after the war began, pled from Ukraine’s grid, provides
President Volodymr Zelenskiy flooded settlements as evacuation Russia. German Chancellor Olaf as a key issue in talks on maintaining electricity to more than 3 million
hypersonic missiles warned in October that Russia had efforts were under way, Ukrainian Scholz said the damage to the dam grain shipments through the Black people and is a “crucial part of the
REUTERS
mined the dam and would explode it Interior Minister Ihor Klymenko said was “something that has a new Sea corridor. country’s energy infrastructure,” he
to pre-empt an offensive aimed at in televised comments. dimension but that fits with the way While crops aren’t directly at risk, said.
SEC sues Coinbase for running Oil erases gains that followed
unregistered securities platform Saudi-led production cut
AP complaint, which was filed in Bloomberg the higher fuel burn inside the
Iran claimed on Tuesday that it had created a hypersonic feedback@livemint.com U.S. District Court for the feedback@livemint.com kingdom during the next cou-
missile capable of travelling at 15 times the speed of sound, NEW YORK Southern District of New York. ple of months, exports will be
O
adding a new weapon to its arsenal as tensions remain high It seeks injunctive relief, dis- il erased all the gains lower.” Saudi Arabia followed
T
with the United States over Tehran’s nuclear program. AP he Securities and gorgement of ill-gotten gains that followed Saudi its move to cut output in July
Exchange Commission plus interest, penalties, and Arabia’s surprise with an increase to its crude
sued cryptocurrency other equitable relief. weekend pledge for extra sup- prices for the same month.
Elon Musk says he learned China platform Coinbase on Tuesday, Coinbase did not immedi- ply cuts. That’s pushing some Asian
charging the company with ately respond to a request for West Texas Intermediate refiners to consider buying
will initiate AI regulations operating an unregistered comment. dipped below $71 a barrel on more crude from other suppli-
Top Chinese officials told Elon Musk about plans to launch new securities platform and broker- The SEC had warned Coin- Tuesday, down by about $1 ers including Russia.
regulations on artificial intelligence on his recent trip to the Asian age service. SEC said Coinbase made base in March that it could face from Friday’s close. The drop WTI oil prices have also
giant, the tech billionaire said Monday, in his first comments on The lawsuit comes a day after billions in being the middle securities charges and had long comes after Monday’s short- The kingdom raised its crude fallen further down the futures
the two-day visit.The Twitter owner and Tesla CEO -- one of the the SEC filed charges against man for crypto buyers AFP signaled that Coinbase had lived surge following the tense prices for July REUTERS curve, with prices for Decem-
world’s richest men -- held meetings with senior officials in Bei- Binance, the world’s largest been flouting securities laws OPEC+ meeting and Saudi ber 2023 and 2024 lower than
jing and employees in Shanghai last week. AFP crypto exchange, and its tocurrency buyers and sellers with its position that crypto- announcement. The kingdom OPEC+ producer saying ear- Friday’s close. “Demand is
founder Changpeng Zhao are but did not give investors law- currencies were not securities also raised its crude prices for lier this year it would reduce looking weaker and non-
accused of misusing investor ful protections while acting as a and therefore did not need to July. supply.“The Saudis undoubt- OPEC supply stronger by year-
FBI director Christopher Wray to funds, operating as an unregis- broker. register as a broker.“You sim- Saudi Arabia pledged to do edly believed a unilateral cut of end than many analysts had
tered exchange and violating a “Coinbase has for years ply can’t ignore the rules “whatever is necessary” to sta- 1 million would give prices a forecast,” Citigroup Inc. ana-
face contempt of Congress charges slew of U.S. securities laws. defied the regulatory struc- because you don’t like them or bilize the market with con- boost,” said Ole Hansen, head lysts said in a note. The bank’s
The head of the US House of Representatives Oversight Commit- Coinbase shares plunged tures and evaded the disclosure because you’d prefer different cerns over the demand out- of commodity strategy at Saxo view is now “even more bear-
tee said he will seek to hold FBI Director Christopher Wray in nearly 20% in the early morn- requirements that Congress ones: the consequences for the look, especially from China, Bank A/S. “The 10% produc- ish demand for 2H ’23 than it
contempt of Congress over what he said was a failure to hand over ing trading on the news. and the SEC have constructed investing public are far too weighing on prices in recent tion cut would need an $8 was at the start of the year. This
information on President Joe Biden’s family dealings. “We will In its complaint, the SEC said for the protection of the great,” said Gurbir S. Grewal, weeks. Oil tumbled 11% last higher price to keep revenues is particularly true for China,
now initiate contempt of Congress proceedings,” committee Coinbase made billions in national securities markets and director of the SEC’s Division of month, in part due to resilient stable, and that is clearly not and not only in oil but across
Chairman James Comer, a Republican, said. REUTERS being the middle man for cryp- investors,” the SEC said in its Enforcement, in a statement. Russian output, despite the happening. But considering commodities.”
Apple’s Vision Pro is a technical marvel. Will anyone buy it?

Unlike other headsets, which Such challenges have forced ered ludicrously expensive Intelligence, a data firm. Most GLASSES HALF FULL advantages over its rivals. It apps from Microsoft, as well as
tend to require hand-held many competitors to rethink when it launched at up to of those sets are made by The strategy is not without has a huge existing user base, Zoom and Webex, and a part-
controllers, the Vision Pro is their involvement in virtual $599; these days a top model Meta, which has been flog- risk. Apple has a reputation for with 2bn devices in circula- nership with Unity. Bob Iger,
controlled by hand gestures, and augmented realities. Meta costs $1,599, a price people are ging its Quest 2 at a loss to releasing perfect, polished tion. The Vision Pro presenta- Disney’s chief executive and a
voice commands and eye seems to be scaling back its willing to pay because it can do build up a critical mass of products. Releasing a $3,499 tion showed how the headset former friend of Jobs, made a
C
ertain products…shift movements. It tracks eyes like enthusiasm, following inves- so much. Perhaps Apple can users. This autumn it will device with a two-hour battery synchronises with Apple’s surprise cameo in the presen-
the way we look at a mouse, and recognises irises tors’ complaints about its normalise paying thousands of release the Quest 3, a pass- life could amount to what other gadgets: users can do tation to praise Apple’s “revo-
technology,” said Tim in lieu of a password. It is a spending and, reportedly, dollars for a pair of glasses in through device which will be Steve Jobs, Mr Cook’s late pre- FaceTime video calls with lutionary platform” and show
Cook, Apple’s boss, as he “pass-through” device, which weak sales of the Quest Pro the same way. far less capable than Apple’s decessor, used to characterise friends on their iPhones or off how the headset might
unveiled the tech giant’s latest uses front-mounted cameras despite a steep price cut since Still, the Vision Pro is but, at $499, a more realistic as a “brand withdrawal”. project a MacBook laptop allow audiences to watch a
gadget on 5th June. The Vision to shows the user a video view its launch in October. Micro- launching at a particularly prospect for most consumers. It is also not yet clear what screen into the headset just by “Star Wars” movie before
Pro, a headset for virtual and of the world around them. And soft, a software giant, has put early stage. Rather than a true The second reason Apple people will do with their devi- looking at it. Apps for the being transported in virtual
augmented reality (VR and AR to make them appear more on hold the idea of making consumer product, it is more wants to get its product out is ces. So far VR headsets have iPhone and iPad will be com- reality to the planet of Tatoo-
in the lingo), whose develop- normal to others, it projects a another HoloLens, an AR like an “expensive developer because it already has its eye been used mostly for gaming: patible with the Vision Pro, ine, or watch 3D replays of a
ment has been rumoured for video image of their eyes onto device that is mainly used by kit”, says one on what comes nearly 90% of VR content meaning there will be hun- basketball match in VR on Dis-
years, will be available early the front of the glass. (An corporate clients. Snap, maker of AR At $3,499, Apple’s next. Tech types spending last year was on dreds of thousands of apps ney’s ESPN sports network.
next year. With more than Apple ad shows a man making another social-media firm, c o m p o n e n t s . Vision Pro is more have long specu- games, estimates Omdia. Meta’s available at launch—albeit Having Mickey Mouse, or even
5,000 patents, Apple dubbed his children breakfast while seems in no hurry to bring out Releasing a than three times lated that it will Quest Pro has failed to excite ones not optimised for the the Disneyland castle, appear
the sleek glass goggles “the wearing it, something you a new version of its AR Specta- developer-ori- as expensive as eventually be professionals with its promise device.Apple’s strategy is also in the sitting room—
most ambitious product we’ve would struggle to do with most cles. Tencent, a Chinese digital ented product at possible to have a of in-person video conferenc- straightforward: make the best “Bring[ing] Disney to our fans
Meta’s rival VR
ever created”. headsets.) The chief reason for titan, abandoned its VR hard- this stage is a pair of AR glasses ing and the like. Apple’s Vision headset and charge consumers in ways that were previously
It may also turn out to be one the projected low sales is the ware plans in February. “new frontier” for and AR headset, as thin and unob- Pro presentation, though char- a lot of money for it, and, pre- impossible”, as Mr Iger put it—
of their lowest-selling. The price. At $3,499, the device is It isn’t unusual for new Apple, says the Quest Pro trusive as a pair of acteristically slick, had nothing sumably, also charge develop- is the sort of thing that might
company had reportedly more than three times as products to take time to take George Jijiashvili sun shades, at resembling a “killer app”. There ers a slice of their app earnings, excite people more than vir-
hoped to shift some 3m units in expensive as Meta’s rival VR off. Apple’s past hits mostly of Omdia, a firm which point are some exciting features, such as happens in the App Store. tual conferencing.
the first year. But expectations and AR headset, the Quest Pro, took several years before they of analysts. headsets will stop being as the ability to take 3D photos Although the firm seems Few people are likely to
have been scaled back; some and more than ten times as really caught on (see chart 1). There are two reasons for it clunky things for nerds and and videos, turning the device focused on the eventual goal of cough up for the Vision Pro, at
analysts now expect Apple to expensive as the Quest 2, the Sales of the Apple Watch were wanting to get the product start becoming something that into a “nostalgia generator”, AR, that is quite different from least initially. But Mr Cook,
ship fewer than 200,000 units social-media firm’s widely low until people decided that out early. One is competitive normal people might wear all says Mr Ubrani. the VR-centric metaverse that who compared it to the launch
in 12 months, an order of mag- used VR device. Even at this its key use was for monitoring pressure, chiefly from Meta, day. Such devices might even But most of Apple’s sug- Mark Zuckerberg, its boss, has of the Mac and the iPhone, said
nitude less than any other big price, Apple’s gadget has had their health. The iPhone didn’t which despite retrenching a replace the smartphone as the gested uses for the Vision Pro talked so much about. it was the “beginning of a jour-
product launch. The Vision to make some technical com- really take off until its fourth little has been on a hiring and next big tech platform. “I don’t seem to involve treating it as a Apple also has a trusted ney”. It may yet be that the
Pro’s first iteration may be a promises. It has a clunky exter- generation, in 2010, by which acquiring spree in its aim to think there’s a doubt in any- sort of giant virtual desktop, brand among consumers. In a journey leads somewhere
commercial flop. Yet it is also nal battery, connected to the time the App Store was popu- make the “metaverse” into one’s mind that AR is the using floating windows of survey in 2021, three times as profitable. As Mr Ubrani puts
the first step on the way to headset by a cable, which lasts lated with thousands of apps reality. As well as hoovering future,” says Jitesh Ubrani of Zoom chats or Excel spread- many people said they would it, “When Apple enters a mar-
something that Apple hopes only two hours. And though that made people realise what up talent, Meta has been IDC, another data company. sheets, or watching a film on a buy a headset from Apple than ket, it completely changes the
will be much bigger. Apple’s designers have done the phone could do. Discover- recruiting users. Already Apple’s presentation charac- giant virtual screen. None of from the second-placed com- trajectory of the market.”
The tech, which Apple has their best to make it as sleek as ing more use cases for the about 10% of Americans use a terised the Vision Pro as “the this is anywhere near as inno- pany, Google. Meta came © 2023 THE ECONOMIST NEWS-
yet to let the public get its possible, it is still an awkward iPhone also helped to justify its VR headset at least once a start of an entirely new plat- vative as the technology itself. sixth. It has leverage with PAPER LIMITED. ALL RIGHTS
hands on, looks impressive. thing to strap to your face. price. The device was consid- month, according to Insider form”. Still, Apple enjoys big developers, too. It will have RESERVED.
LIVEMINT.COM NEWS WRAP Wednesday, 7 June 2023

MuMbai 11
TwEETS & quOTES

Soumya Swaminathan Benedetto Vigna Dr. Nigina Muntean
Julitta Onabanjo Chairperson, MS Swaminathan CEO, Ferrari Chief, Innovation Unit, UNFPA
Director, technical Research Foundation Ferrari’s new next- I am proud to celebrate
division, UNFPA Our marine environment has generation power UNFPA Equalizer Fund efforts
UNFPA responded to been neglected for too long. plant factory will be to reduce waste and protect
the needs of women Beat plastic pollution in the ready in June 2024 environment: eco-friendly
and girls with speed and ocean through recycling & menstrual pads, solar lan-
ingenuity in the midst of upcycling of abandoned terns, corporate green procur-
multiple crises fishing nest & gear enment
IIFL Finance to raise A STORM IN THE SEAS Rich nations owe

₹1,500 crore in debt $170 tn on emissions
L I
eading non-bank lender IIFL Finance is ndustrialized nations of the Global North,
tapping the debt market to raise up to such as the US and Germany, are responsible
₹1,500 crore by selling NCDs, offering up for 90% of excessive levels of carbon dioxide
to 9% in return to investors. emissions and could be liable to pay a total of
The debt raising through a public issue, will $170 trillion in compensation to low-emitters
be launched on 9 June, and the proceeds will like India to ensure climate change targets are
be used for business growth and capital met by 2050, according to a new study.
augmentation, the Prem Watsa-led Fairfax India is owed an annual compensation of
Holding-backed company said.The primary $1,446 per capita until 2050 and a yearly
issue of secured redeemable non-convertible compensation equivalent to 66% of its GDP in
debentures (NCDs) is for ₹300 crore, with a 2018, the study published in scientific journal
green-shoe option to retain over-subscription Nature Sustainability said. The researchers from
of up to ₹1,200 crore, totalling ₹1,500 crore, University of Leeds, the UK, analysed 168
offering up to 9% for a 60-month tenor. countries and quantified historical
The bonds are also available in 24 months, responsibility for climate breakdown, based on
36 months tenors. The interest will be paid excess carbon dioxide emissions beyond
annually, on a maturity basis and with a equality-based fair share of global carbon
monthly option for 60-month tenure, group budgets. Climate science defines carbon budget
chief financial officer Kapish Jain said. as the amount of greenhouse gases that can be
In April, it repaid $400 million of dollar emitted for a given level of global warming. PTI
bonds, raised in February 2020. PTI
Fishing boats were anchored at Badhwar Park jetty in Mumbai on Tuesday due to the formation of a depression over the southeast Arabian Sea.
According to the India Meteorological Department, the depression has intensified into cyclonic storm named ‘Biparjoy’ on Tuesday evening and lay
centered about 920 km west-southwest of Goa and 1,050 km southwest of Mumbai at 5.30 PM. PTI
Germany nears $5.2 bn deal Rohit, who was taking throwdowns, was seen
holding his left thumb following a hit in the nets.
to build submarines in India

PTI
Tarun Kapoor, adviser to the Prime Minister. PTI
India-Australia WTC
‘EV price has to
final begins today
come down further’
I
ndia captain Rohit Sharma was hit on the left
I
ndia should aim for a 100% transition to thumb while batting in the nets a day before
electric two-wheelers in the next 5-7 years Thyssenkrupp’s marine arm and Mazagon Dock Shipbuilders are likely to bid jointly the World Test Championship final against
and make India a manufacturing hub for Australia.
electric vehicles (EVs), said Tarun Kapoor, On another nippy and overcast morning in
adviser to the Prime Minister, PMO on Bloomberg visit, German and Indian officials said. with Thyssenkrupp Marine Systems in manufac- London, Rohit was among the four squad
Tuesday. Speaking at the ‘FICCI Roundtable feedback@livemint.com Pistorius told public broadcaster ARD that the turing submarines. members who turned up for optional practice.
on Electric Mobility,’ Kapoor emphasized the submarine deal will be on the agenda when he vis- India’s ministry of defence and Mazagon Dock R. Ashwin, Umesh and K.S. Bharat were the
G
significance of this transition for India’s energy ermany and India are closing in on a its Mumbai on Wednesday and that his role is to Shipbuilders didn’t respond to requests for com- others who showed up in the morning session
security and environmental concerns. deal to build diesel submarines in “support and assist” the negotiations between ment. A German defence ministry spokesperson along with the net bowlers. Rohit, who was
Kapoor highlighted the government’s the South Asian country as Russia’s German executives travelling with him and their and a Thyssenkrupp Marine Systems representa- taking throwdowns, was seen holding his left
commitment to driving the EV sector, not only prolonged war in Ukraine pushes Indian counter- tive declined to thumb following a hit in the nets but he did not
to increase the presence of electric cars, buses, New Delhi to expand its sources of parts. comment. appear to be in a lot of discomfort. As a
and two-wheelers on the road but also to military hardware beyond top supplier Moscow. “This would be a A preliminary agreement will be India has identi- precautionary measure, he did not bat after that.
establish India as a global manufacturing hub. Thyssenkrupp AG’s marine arm and India’s big and important signed in the presence of Germany’s fied Mazagon Dock People privy to matter said “there is no issue”
He acknowledged the strong presence of Mazagon Dock Shipbuilders Ltd are likely to contract not only for Shipbuilders and with him ahead of the title clash beginning in
leading players in the Indian auto sector, jointly bid for a project worth an estimated $5.2 German industry defence minister Boris Pistorius, who Larsen & Toubro to London on Wednesday.
stating that transitioning to EVs should be a billion to build six submarines for the Indian navy, but also for India arrived in New Delhi on Tuesday tie up with foreign The Oval, which hosted its first Test back in
relatively straightforward process. according to people with knowledge of the mat- and the Indian-Ger- defence majors to 1880, is staging a five-day game for the very first
“The price has come down slightly as India is ter, who asked not to be identified as the details man strategic part- build the diesel time in June. PTI
a very price sensitive market and therefore, the are confidential. nership,” Pistorius said. In a statement to report- attack submarines. A key target for a partnership
price has to come down further. The support A preliminary agreement, or memorandum of ers later on Tuesday, he cautioned that “there are had been Thyssenkrupp Marine Systems, which
from government including subsidies, taxes understanding, will be signed in the presence of of course also other competitors” and said that is one of two submarine manufacturers globally
and policy reforms will not take us beyond a
point but it is the industry who must take it
Boris Pistorius, the defence minister in Chancel-
lor Olaf Scholz’s government in Berlin, who
“the French are clearly also in the game.” to have air independent propulsion—a technol-
France’s Naval Group SA, in which the govern- ogy that helps conventional submarines stay
Airbus starts drone
forward,” he asserted. STAFF WRITER arrived in New Delhi on Tuesday for a two-day ment in Paris is the main shareholder, competes underwater for longer.
pilot training course
A
irbus announced on Tuesday that it will
Sakhalin seeks be providing a comprehensive drone
CBI takes over Balasore crash case pilot training course in Bengaluru
Indian investments starting from 26 June. This five-day
programme, approved by the civil aviation
Coromandel Express, Yashwantpur- regulator Directorate General of Civil Aviation,
T
he local governor of Russia’s Pacific Howrah Express and a goods train at is specifically designed for micro and small
island of Sakhalin has invited companies Bahanaga Bazar. categories of drones. Aspiring drone pilots will
from India and China to tap the region’s “The CBI has registered a case on the receive both theoretical and practical lessons
energy resources following the departure of request of ministry of railways, consent of throughout the course.
European and American oil and gas majors. the Odisha government and further The training programme will be conducted
Russia has been forging closer political and orders from DoPT relating to the train by DGCA-approved Airbus instructors who
economic ties with Asia since the start of what accident involving Coromandel Express, will cover various topics such as drone rules,
the Kremlin calls a special military operation in Yashwantpur-Howrah Express and a basic principles of flight, air traffic control
Ukraine last year and the resulting Western Goods train at Bahanaga Bazar in the state procedures, maintenance, operations, and
sanctions on Moscow. “We invite companies of Odisha on 2 June, 2023,” the CBI said in aerodynamics. People will have the
from China and India to projects of the energy a statement. In accordance with the Blinken had earlier scrapped a planned trip to opportunity to undergo drone flying lessons,
complex. This is a good chance for them to fill established procedure, the CBI took over China over a suspected Chinese spy balloon.REUTERS including simulator training and practical
the niche vacated by American and European The train accident in Odisha claimed the the Balasore GRP case number 64, which flying sessions, at a facility approved by Airbus
companies in the oil and gas services market,”
Sakhalin’s governor Valery Limarenko said on
lives of 278 people. AFP was initially registered by the Odisha
Police on 3 June. The case has been filed
Blinken may travel in Bengaluru. NAMAN SURI
to China for talks

T
the government’s website. Shell and he Central Bureau of Investigation under multiple IPC sections, such as those
ExxonMobil withdrew last year from energy (CBI) on Tuesday officially took over concerning causing hurt, endangering
projects in Russia, writing off billions of US the investigation into Odisha’s lives through rash or negligent action, and
Cococart India to
U
dollars. The island is the location for the Balasore train crash, which claimed the common intention. According to the S secretary of state Antony Blinken will
Gazprom-led Sakhalin-2 liquefied natural gas
(LNG) plant and Sakhalin-1 oil project, in which
lives of 278 people. Earlier in the day, the
CBI team had reached at the Balasore
procedure, the CBI re-registers the local
police case as its own FIR and starts the
travel to China for talks in the coming
weeks, a US official said on Tuesday, add 200 stores
Russia’s largest oil producer Rosneft has a 20% train accident site involving the probe. SUBHASH NARAYAN months after he scrapped a planned trip over a
A
stake. REUTERS suspected Chinese spy balloon that flew across the chocolate retail business that was born
United States. The official did not elaborate on out of a necessity in the pandemic
timing. The state department did not confirm any during various lockdowns by the family
plans. “We have no travel for the secretary to that runs the Flemingo Duty Free business, is
Aditya Birla Group to invest ₹5,000 cr for jewellery retail foray announce; as we’ve said previously the visit to the
People’s Republic of China will be rescheduled
now looking to rapidly expand its business in
the country. Cococart Ventures Private Ltd-
when conditions allow,” deputy spokesman owned Cococart India, an independent
A
ditya Birla Group is set to enter into the branded jewellery retail Vedant Patel said. Bloomberg News first reported business of the Ahuja family run by brothers
business with an investment of ₹5,000 crore, competing with the planned visit. Arjun and Karan is a gourmet chocolate retail
heavyweights such as Titan Company and Kalyan Jewellers. The top US diplomat postponed a visit to company. It currently has 57 stores of which 18
The new venture ‘Novel Jewels Ltd’ will have large-format exclusive Beijing in February after the balloon flew over are cafés, and the remaining retail stores are in
jewellery retail stores across India, with in-house jewellery brands, the group sensitive military sites before being shot down malls and at airports. It will add anywhere
said in a statement on Tuesday. This is the group’s third major foray into a new by the US military. The balloon, which Beijing between 200 and 250 stores in the next four to
business in the last two years after paints, and B2B e-commerce for building denies was a government spy vessel, spent a five years in the country.
materials. Additionally, it also runs a large fashion retail business, under Aditya week flying over the US and Canada. It intends to franchise about 25% of the
Birla Fashion and Retail Ltd, that sells men’s and women’s clothing, accessories President Joe Biden’s administration has upcoming stores. The company’s co-founder
and footwear. The branded jewellery retail venture will be operated by a newly pushed to boost engagement with China as ties Arjun told Mint that the business grew from a
recruited leadership team, the group said. between the world’s two largest economies have gross revenue of ₹52 crore in 2021 to ₹100
India’s gems and jewellery market contributes approximately 7% to the deteriorated over issues ranging from crore in 2022. It had a turnover of ₹175 crore in
country’s GDP. India’s jewellery market is projected to grow to $90 billion by democratically governed Taiwan, which China FY23 on the back of the rapid store and cafe
2025. India is among the largest markets for gold jewellery globally making it India’s gems and jewellery market contributes approximately 7% to claims as its own, to military activity in the South expansion. Mint could not independently
an attractive market for investors. LIVEMINT the country’s GDP. REUTERS China Sea. REUTERS verify this information. VARUNI KHOSLA

MuMbai LONG STORY LIVEMINT.COM
WILL THE HDFC MERGER

lIve up TO ITs prOmIse?
Making the mega merger work involves complex moves. Here’s the inside story
Shayan Ghosh & Satish John

mint
MUMBAI SHORT
STORY
T
he year was 1993. The manage-
ment of mortgage lender Hous-
ing Development Finance WHAT
Corp. Ltd (HDFC) had just
received an approval to set up a On 1 July, private lender HDFC
bank and was in two minds about what to Bank will take over its parent
call the new entity. They thought about housing finance company HDFC
calling it First City Bank. And they in one of the largest mergers
thought about calling it Bank of Bombay. and acquisitions deals of all
But eventually, after the man who was to time in India.
head it put his foot down, they called it
HDFC Bank. A bank by any other name, he
pointed out, would never be just as neat. NOW
In a sense, the hesitation about the
name was understandable. HDFC, About 20 integration teams of 2-4
which was then about 16 years into the people have been working
business, had a sizeable book of behind the scenes to ensure
₹2,562 crore and a solid reputation. things are ready on day 1. There
The top brass was uncertain will be one website for customers
about how the new bank would to navigate all products.
perform and wanted to protect
the HDFC brand. But CEO-des-
ignate Aditya Puri made it clear BUT
that nothing other than the
name HDFC Bank would work. Despite the larger book, analysts
Eventually chairman Deepak see HDFC Bank facing a
Parekh gave in. The rest is history. challenge replacing HDFC’s ₹5.7
Today, the subsidiary has eclipsed the par- trillion debt. When the dues
ent and is all set to absorb it. On 1 July, HDFC mature, the bank will have to
Bank will take over the housing finance replace them with fresh funds.
company in one of the largest mergers and
acquisitions (M&A) deals of all time.
The numbers reveal just how big a deal replace those, as much as possible, with
it is. HDFC Ltd had assets under manage- deposits. At the same time, we are not
ment of ₹7.2 trillion as on 31 March, up 11% shutting out alternative funding sources
from the previous year. Its gross bad loan like bonds,” said Vaidyanathan. He
ratio stood at 1.18%, down from 1.91% in the seemed unfazed by the enormity of this
fourth quarter of last year. HDFC Bank has challenge, perhaps as a result of the bank
a total loan book of ₹16.1 trillion, 17% higher surpassing its deposit target comfortably
than the previous year. Its gross bad loans in the March quarter.
were at 1.1% of total loans, down from 1.2% Suresh Ganapathy, managing director
in 2021-22. As for the bottom line, HDFC and head of financial services research at
Ltd recorded a profit of ₹16,239 crore in Macquarie Capital, expects “heavy partici-
2022-23, while HDFC Bank reported a pation” from HDFC Bank in the bond
profit of ₹44,110 crore the same year. markets over the next 12 months as part of
“A merger between the two entities has the merger exercise.
always made sense. We have evaluated it Issuance of bonds—especially long-
time and again. In fact, back when we got term bonds that are used to fund afforda-
the banking licence, the debate we had ble housing—has benefits in meeting reg-
was whether to convert HDFC into a bank ulatory requirements such as cash reserve
or to set up a separate entity,” said Keki ratio (CRR), statutory liquidity ratio (SLR)
Mistry, chief executive and vice-chair- and priority sector lending (PSL). Under
man, HDFC Ltd. the RBI’s regulations, banks need not
With over four decades of experience at account for these bonds in meeting buffer
HDFC, Mistry saw the evolution of India’s requirements and priority sector targets.
largest mortgage lender up close. And he On 15 April, the bank’s board approved
will now witness his organization being raising of up to ₹50,000 crore perpetual
merged into the bank it spawned three debt instruments, tier II bonds and long-
decades ago. Mistry will still have a ring- term bonds for financing of infrastructure
side view of the combined entity, most and affordable housing over 12 months
likely taking a board seat in the bank again through private placement.
after three years, in a non-executive role. HDFC Ltd has been able to iron out some
The merged entity, which will signifi- regulatory issues that could have affected its
cantly widen its lead over private banking performance after the merger. On 20 April,
rival ICICI Bank on the asset front and the RBI allowed the bank to achieve compli-
come closer to state-owned behemoth ance on some of these in a staggered man-
State Bank of India, will be led by current ner. For instance, the bank has three years
HDFC Bank chief Sashidhar Jagdishan. to meet the priority sector lending norms
Chairman Parekh will retire. that mandate lenders to make 40% of the
Interestingly, HDFC Ltd, has not seen total loans to weaker sections of the society.
any senior-level exits since the merger Since the merger would add over ₹7 trillion
deal was announced last April, a statistic of loans to the merged entity, the priority
its management says points to the fact that sector requirement would surge overnight.
everyone is happy with the amalgamation.
“People are comfortable with the A POWERFUL VOICE
merger, people are comfortable with the
culture,” said Mistry, seated in the fifth-
floor conference room of HDFC House, a
I nterestingly, the group has had the ear
of regulators and governments in the
past, which sometimes lead to tweaks in
building just a few meters from Ramon laws and regulations. Although HDFC was
House, the mortgage lender’s old head- among the first to get an in-principle bank-
quarters, at Churchgate, Mumbai. ing licence in 1994, the final licence came
a year later. In the interim, it was able to
CROSS-SELLING OPPORTUNITY ASHISH ASTHANA/MINT convince the government to amend the
T he bank sees tremendous opportuni-

ties in cross-selling products to exist-
ing and new home loan customers of
Banking Regulation Act to increase share-
holder voting rights to 10% from 1% earlier.
The RBI ‘listened’ because HDFC created
HDFC Ltd, all of whom will now be part of For instance, someone taking a home loan customer is being assessed for a large loan These encompass areas such as branches, trillion are in deposits, while the rest is India’s mortgage industry—for the first
the bank’s book. Under an existing would be able to get bundled offers from like housing, the bank believes that get- technology and websites, among others. through wholesale sources such as bonds time, aspiring middle-class Indians could
arrangement (pre-merger), HDFC Bank the bank. “As part of the merger and ting a credit card would not be difficult. For instance, on day 1, there will be one and loans from banks. own an apartment in a city like Mumbai.
used to source loans for the parent, which immediately thereafter, we are trying to “Mortgages would be at the center of consolidated website for customers to nav- When these dues mature, the merged The bank also got its way in another mat-
would then conduct due diligence and bundle loans where we offer mortgages the plate. The bundled products will be igate various products. entity will have to replace them with fresh ter. Back then, the RBI wanted new banks to
disburse the loan. After retaining some of and along with that, a savings account, and light on documentation as the borrower is Although the integration is being prima- funds of its own. Although the bank can be headquartered in different Indian cities
these loans on its books, the housing len- a loan to procure white goods, among oth- already providing a host of documents for rily driven by these internal teams, there is continue to issue bonds after the merger, (to avoid concentration in metropolitan cit-
der would transfer some ers,” said Vaidyanathan. the home loan,” explained Vaidyanathan. some amount of external involvement in it would need to replace ies and overbanked areas).
to the bank. It was a HDFC Ltd Over the years, the On the effective date of the merger, the integration of human resources, one of the loans HDFC has HDFC Bank Mumbai already had pub-
mutually beneficial FY23 profit: 16,239 cr
bank has observed that HDFC’s investments in subsidiaries such as the trickiest factors in any merger. The from other banks since FY23 profit: 44,110 cr
lic sector banks. ICICI
arrangement. customers with mortga- the insurance businesses will belong to the bank, however, did not reveal details about regulatory norms do not Bank, therefore, had to be
Assets under Total
“For mortgages, the management: 7.2 tn ges have a bank balance bank. The Reserve Bank of India (RBI) the exact nature of the external involve- allow banks to borrow advances: 16.1 tn headquartered out of
bank did not have prod- Gross NPA
seven to eight times recently permitted the group to increase its ment. HDFC Ltd has 4,017 employees, from each other. The Gross NPA
Vadodara. Nevertheless,
uct, credit and market- ratio: 1.18% higher than other account stake to over 50% in both HDFC Life Insur- while HDFC Bank has 173,000 employees. bank is thus aggres- ratio: 1.1% HDFC convinced the RBI
ing teams specific to holders. Having more ance Company and HDFC Ergo General About 500 of HDFC’s branches will be sively raising deposits to to make an exception,
that product but acted
Employees: 4,017 such customers on its Insurance Company before the merger. used as mortgage engagement centres for meet this requirement
Employees
Over: 170,000 saying that it had to be
as a sales agency. Just Outlets: 523 books would allow HDFC While HDFC Life has six million cus- the bank and will house specialists who over time. Branches: 7,821 headquartered in Mum-
like an auto dealer sells Bank to garner a sizeable tomers, HDFC Ergo has 15 million. The have been dealing in such loans in the past. As part of its strategy bai because of its ambi-
a product, the bank sells chunk of low-cost savings bank believes that once merged, it will Although these employees will gradually to replace HDFC’s dues tions to use technology
mortgages produced by HDFC,” said Srin- account deposits. Term deposits, on the have a closer relationship with the insur- be retrained to sell other banking products, and prepare for the merger, the bank has and be close to corporate clients.
ivasan Vaidyanathan, HDFC Bank’s chief other hand, have a higher interest payout ance business—it can push penetration these branches will also be staffed by peo- also been on a journey to open 1,500 bran- In retrospect, being close to corporate
financial officer. and can hurt lenders. into its customer base. ple from the banking side to assist them. ches every year for the next three-four clients worked—overtime, it grew into a
Currently, about a third of HDFC Ltd’s As on 31 March, the bank’s total retail years and garner more deposits. It has set systemically important bank. And while
customers bank with HDFC Bank, a space loans stood at ₹6.35 trillion, up 19% from THE INTEGRATION THE BORROWING CHALLENGE a target of attracting ₹1 trillion in customer Deepak Parekh may have been reluctant
the latter wants to aggressively fill by
cross-selling products and services after
the merger. The bank has 83 million cus-
the same period last year. Personal loans,
a category of unsecured credit, form the
largest portion of the retail loan book and
A bout 20 integration teams of two-four
people have been working behind the
scenes to ensure things are ready on day 1.
E ven as the bank eyes vertigo-inducing
growth, despite the larger book, it
needs to match those ambitions with ade-
deposits every quarter, an uphill task
given the kind of competition for these
funds. After failing to meet this ambitious
at first to let his new bank use the HDFC
name, today, as he gets ready to retire, he
will be pleased that Aditya Puri convinced
tomers, of which only about 2% have stood at ₹1.72 trillion in 2022-23. The bank is currently developing and test- quate deposits. As far as liabilities go, ana- target in the third quarter of the last fiscal him otherwise. The child is now ready to
home loans from HDFC Ltd. The bundled offering will also include ing various internal processes to allow the lysts see HDFC Bank facing a challenge year, HDFC Bank added ₹1.5 trillion in the absorb the parent, making India’s biggest
HDFC Bank plans to offer a bouquet of insurance products and credit cards to consolidated entity to function seamlessly replacing HDFC Ltd’s ₹5.7 trillion bor- January-March quarter. private bank even bigger.
other products to home loan customers. deepen their penetration. Given that the once the integration switch is turned on. rowings. Of those borrowings, around ₹1.5 “As HDFC’s liabilities mature, we will shayan.g@livemint.com
LIVEMINT.COM MINT MONEY Wednesday, 7 June 2023

MuMbai 13
How Bajaj Finserv plans to Compare your bank FD rates

B ank fixed deposits (FDs) continue to be popular investment products not just among
senior citizens, who are looking for guaranteed income, but also among investors
sell MFs to its 100 mn clients

who can’t stomach risk. But overexposure to FDs is not good, and you need to assess
your asset allocation and goals to decide how much
money you should park in them. For instance, saving
for your child’s higher education that’s 15 years away
through FDs may not be effective as the post-tax
interest rate of an FD may not give you a real return
Neil Borate (return that’s above the rate of inflation). But if you
neil.b@livemint.com plan to take a holiday in two years, an FD can help.
The game plan Before choosing an FD, you should compare the
B
ajaj Finserv AMC, India’s interest rates on offer. Here is a list of banks that
WHY ARE YOU LAUNCHING BAJAJ AMC? WHAT PRODUCTS WILL YOU LAUNCH? offer the highest FD rates for deposits up to
41st mutual fund house, is We sell products to the middle class. We We’ve filed for seven products. We will avoid ₹1 crore over various tenures.
gearing up to launch inau- began with loans and insurance. Now, we products without alpha such as the large cap
gural new fund offers have come up with MF for those wanting to category. Interest rates (%) for fixed deposits up to ₹1 crore
(NFOs). With 87 funds filed invest their savings.
across equity, debt and hybrid catego- WHY DIDN’T YOU LAUNCH EARLIER? 6 months 1 to < 2 2 to < 3 3 to < 5 5 years
ries, Bajaj Finserv seeks to capitalize on WHAT’S YOUR USP AS A GROUP? We got a license in 2011 but back then, to < 1 year years years years and above
its existing 100 million customers, lev-  A large distribution network. there were significant regulatory changes
eraging its clientele for the new fund  The knowledge that distributors for being evaluated and the tech ecosystem DCB Bank 6.25 7.25- 8.0 8.00 7.75-8 7.75
house. To lead this initiative, Nimesh different financial products are the same. was not mature enough in our assessment
Chandan, a former fund manager at  Letting individual businesses have for us to play the way that we would have Axis Bank 5.75-6 6.75-7.10 7-7.05 7.00 7.00
autonomy. liked it to.
Canara Robeco AMC, has been
 Leveraging data & technology for HDFC Bank 4.5-6 6.6-7.10 7-7.2 7-7.25 7.00
appointed as the chief investment offi- customer benefit. DO YOU THINK YOU’VE LOST OUT ON
cer, while the group’s head of strategy BUILDING A TRACK RECORD?
IndusInd Bank 5-6.35 7.75 7.50-7.75 7.25-7.50 7-7.25
and a former BCG Partner Ganesh WHAT WILL SET APART We have a track record through our
Mohan takes on the role of chief execu- BAJAJ AMC? insurance business. Our fund managers
IDFC First Bank 5-6.75 6.75-7.75 7.75 7-7.75 7.00
tive. In an exclusive interview, Sanjiv Not only an informational individually also have a lot of experience.
Bajaj, chairman and managing or analytical edge. Our RBL Bank 4.75-6.05 7-7.80 7.50 7.10 7-7.10
director, Bajaj Finserv, and Mohan, edge is behavioural TERs HAVE FALLEN OVER TIME. HOW DO
—such as understanding YOU DEAL WITH THAT?
share insights into their vision and SANJIV BAJAJ YES Bank 4.75-6.25 7.50-7.75 7.75 7.00 7.00
the role of bias in Industry volumes have grown. It is natural for
strategy. Edited excerpts: Chairman & MD expenses to fall as volumes grow.
investment decisions. ICICI Bank 4.75-6 6.7-7.10 7-7.10 7.00 6.9-7
Bajaj Finserv
Why are you launching Bajaj Fin-
serv AMC? Canara Bank 6.25-6.50 6.90-7.25 6.85 6.80 6.70
Bajaj: Our journey began in 2007. the way startups are paying. For us, it is is analysis. Can you process that infor- a large cap fund where you end up Union Bank of India 4.4-5.25 6.3-7 6.30 6.5-6.7 6.70
We decided to focus on India’s middle our investment in digital, in 150,000 mation with better tools and models? tracking or mimicking the index for
class because they knew us well. They stores, in creating a strong sales team. Again here, there’s still some juice but 75-80% of your portfolio. Dhanlaxmi Bank 6.50 6.75-7.25 6.50-6.75 6.50-6.60 6.60
already bought scooters, motorcycles Two, we realised that a large number by and large it’s squeezed. That brings Distributor margins are shrinking
and electrical appliances from us. We of distributors are common across dif- us to the third and the biggest advan- and expense ratios are getting low- Federal Bank 5-6 6.80-7.25 6.75 6.60 6.60
started with the early part of a person’s ferent products and services. So, now tage, which we believe is really going to ered. Isn’t this a challenge?
life cycle—getting a loan. So, we started we have a large number of distributors be the key driver for the future, that is, Mohan: As any industry matures, Bank of Baroda 4.5-5.75 6.75-7.25 6.75-7.05 6.50-7.05 6.50
expanding Bajaj Finance. We then said, who know what is different and unique the behavioural edge. Can we keep on margins shrink. To compensate for it,
Indian Overseas Bank 4.95-5.35 6.50-7.25 6.80 6.50 6.50
‘
okay, as a person makes a lot of money, about us. Our focus has always been the improving on our decision-making the industry has higher volumes.
they will buy a house, or a two-wheeler right product, with transparency. For ability over a period of We think distributors
Punjab National Bank 5.50-5.80 6.75-7.25 6.80-7 6.50-7 6.50
and a four-wheeler. So, asset protection example, even in 0% financing our doc- time, using the right can compensate for
and life protection came umentation says what kinds of checklists, As an industry matures, shrinking commis-
State Bank of India 5.25-5.75 6.80-7.10 7.00 6.50 6.50
in the form of general mINTERVIEW our IRR (internal rate of templates, nudges, as margins shrink... We sions by expanding
and life insurance. And return) is, because the well as tools screen- think distributors can volumes. Jammu & Kashmir Bank 4.50-6 7.10 6.75 6.50 6.50
accordingly, we started manufacturer is paying ers? That’s the edge we Can you sell MFs to
setting up each business. We applied us. Third, is the entire culture we have aim for. compensate for the loan customers? Tamilnad Mercantile Bank 6-8 7-7.25 6.75 6.50 6.50
for the mutual fund licence in 2011. built on empowerment, innovation, You will need five shrinking commissions Bajaj: Today on the Data taken from respective bank's website as on 02 June 2023; Only main entity of the merged banks are taken.
That was around the time when the the rewards for our teams, for them to years to establish a by expanding volumes Bajaj Finance app we Banks which merged with its main entity are removed from the table; The list of 15 banks is based on highest fixed deposit
rates available for 5 years and above Source: www.Bankbazaar.com
Securities and Exchange Board of India feel like owners in building their busi- track record. So, distribute many MFs.
Ganesh Mohan
(Sebi) dramatically changed its first set nesses rather than a top down shouldn’t you have CEO, Bajaj Finserv AMC As a lending institu-
of regulations for MFs and cut its com- approach. Simple things like being in launched earlier? tion, it is allowed. This
missions. We decided we would wait Pune, and not being in Mumbai, was a Mohan: We have is not allowed in insur-
for those things to settle down. very conscious decision 10 years ago, to
Then we built our digital distribu- signal that we don’t wish to be in the
tion. We let the customer start experi- midst of all that noise in Mumbai.
built-in experience of investment man- ance by the insurance regulator, which
agement in group businesses such as does not allow an insurance company
insurance. Plus, our fund managers to sell any other products to customers.
Life events: Why you should
encing our products. The biggest chal- What will set apart Bajaj Finserv
lenge for any new fintech or insurtech AMC?
firm is your customer acquisition cost. Mohan: There are three possible
individually have a huge amount of We have been presenting other finan-
industry experience. cial products to customers of one prod-
What will set your products apart? uct for the past 10-15 years at their con-
review your Will periodically
We pay to get customers on board one sources of alpha. One is information. Mohan: We will only launch prod- currences within the framework of the
time. After that we never pay. The first But today, we all get the same informa- ucts where we see a definite scope for law. The ability to be visible and ISTOCK
time also, acquisition cost is not direct tion, so that isn’t a big edge. The second alpha. For example, we will not launch present itself is a very big advantage. Jahnavi Dwarkadas relationship with his children.
In such a scenario, we would
I have been married for 15 certainly advise your husband
years. My husband’s previ- to review his last Will.
Decoding zero forex markup on debit, credit cards ous marriage ended in a
divorce. From his first mar-
riage, my husband has two
We would also advise him to
ensure the nominations on his
bank accounts and invest-
AFP children. He has not been ments are up to date. A nomi-
Shipra singh partnership with other banks. ple, the IDFC First Wow credit in touch with them. He exe- nation is a very effective tool
shipra.singh@livemint.com “Niyo Global customers can card is issued only one has a cuted a Will prior to our which enables the nominee to
take credit and debit cards from fixed deposit (of ₹5,000) with marriage, and left a large access financial assets in the
S
tarting 1 July, there will be many bank partners with zero the bank. “Credit limit is equal part of his estate to his sib- event of death enabling imme-
significant changes in the markup forex charges.” to the FD amount,” Sumanta lings, nothing for his first diate liquidity to family mem-
way you spend during Fi and Jupiter, however, do Mandal, founder, TechnoFino, wife or children, and a flat bers. However, it is important
foreign holidays, including for not waive forex fee for all debit said. This could be a costly for me. Now, my husband is ASK MINT to remember that a nominee is
food, shopping, commuting as card users. Fi proposition for trying to reconnect with m E S TAT E P L A N a trustee for the legal heirs and
well as for recreational activi- charges 2.5% for At present, three some as you have his children and expressed family members must resolve
ties. International transactions forex mark-up on to lock-in money his desire to leave some this in case the nominee and
on debit or credit cards exceed- accounts that do
credit cards are in an FD, which is assets for them. Should he succession planning does not legal heirs are different. The
ing ₹7 lakh will be subject to a not maintain the available that also akin to locking in update his Will that would stop at Will writing. It’s equally value of having a proper suc-
20% tax collected at source minimum bal- waive markup 20% with the gov- reflect the change in cir- crucial that one reviews the cession plan should not be
(TCS), but loading a prepaid ance. fees, which ernment through cumstances? Will at least once every 5 years underestimated. It is therefore
forex card or purchasing local which is less than the 1% in the zero forex markup fee. While If one main- typically range TCS. Well, – Name withheld on request. or when a significant life or recommended that your hus-
currency in India will attract case of zero-cost forex cards.. Niyo has tied up with Equitas tains the mini- from 1.5% to 3.5% though an FD financial event occurs. band proactively reviews his
TCS from the very first pur- Nevertheless, there is some Small Finance Bank and SBM mum balance of earns an interest Without a doubt we would Reviewing ones Will means existing Will and updates it to
chase. relief. Select fintech firms have Bank, Fi has a partnership with ₹10,000, they get of 5-7%, unlike the recommend your husband to forming an assessment, as to ensure it reflects the require-
The regulation presents a partnered with banks to offer Federal Bank. zero forex markup up to TCS, the two are similar as they rewrite his will. Any lapse may whether it still meets one’s ments of the present-day.
dilemma for individuals whose zero forex markup debit cards, In early 2023, the Reserve ₹50,000 monthly spending, require you to pay the amount result in an undesirable sce- succession goals at the present Jahnavi Dwarkadas is an
foreign expenses are not likely significantly reducing the cost Bank of India had put restric- and those having ₹50,000 upfront. nario where both you as well as time and into the (near) future. associate partner at SNG &
to cross ₹7 lakh. They will be of international spending. tions on international debit and minimum balance mandate it Likewise, RBL World Safari his children will be deprived of In this scenario, the last Will is Partners
inclined to use a debit or credit Presently, three such credit credit cards issued by SBM waves fees on all spends. Also, card could be a good option for a majority of his assets. In fact, not representing the changed
card to save the 20% upfront cards are available that also Bank after finding slip-ups in 2.5% markup is charged on those travelling overseas fre- this could even result in litiga- circumstances. Now that you Do you have a personal
cost levied on forex, but the waive markup fees, which typi- regulatory compliances. The transactions at first on Fi but is quently in view of the zero tion among family members. and your husband are married, finance query? Send in your
downside is that they will have cally range from 1.5% to 3.5%. clamp down hit Niyo Travel reversed for eligible transac- forex fee and free medical While a Will is perhaps one he may wish to leave some queries at
to shell out an extra 2.5-6% per Read the fine print card users, said Swapnil Bhas- tions within 30 days. insurance, despite not earning of the most basic elements of more assets for you. Moreover, mintmoney@livemint.com
and get them answered by
transaction in the form of forex Niyo global debit card and Fi kar, head, strategy, Niyo, which Zero-forex credit cards have any rewards on international succession planning, it is also, it appears that your husband is
industry experts.
markup and transaction fees, Visa Platinum debit card has is in the process of entering a certain conditions. For exam- transactions. the most essential. However, even attempting to establish a
MFs MUST PERFORM BEFORE THE PUSH FOR A PERFORMANCE-BASED FEE STRUCTURE
ISTOCK
not keeping all eggs in one basket. sures. There is a trade-off between the two presumed advantages
The other advantage of mutual fund investing is professional offered by mutual funds—diversification and professional invest-
EXPERT investment management. The assumption is that investors, espe-
cially retail ones may not have the time and/or required knowl-
ment management. This trade-off between risk-minimisation
and return maximisation at the granular level must be well
VIEWS edge and resources to do their own research on companies and understood by various stakeholders of the mutual fund industry.
securities. A mutual fund is managed by full-time, professional The major difficulty in attempting to evaluate the performance
DR CKG NAIR & fund managers who have expertise, experience and resources to of the funds on these two dimensions—return and risk—has been
DR RACHANA BAID actively buy, sell, and monitor investments. Hence the expecta- lack of a thorough understanding of
We welcome your views and comments at
mintmoney@livemint.com
tion that professional fund managers managing funds actively Adopting the nature and measurement of ‘risk’.
should perform better than the benchmarks or passive funds. ‘perform or Currently, in the risk-o-meter, all
While mooting the idea of variable TER based on performance
perish slogan’ is equity funds are high risk categories.
T
he mutual fund sector has seen a churn for quite a few of schemes, the performance of actively managed equity schemes A simple solution of categorising
years. The latest episode is a consultation paper issued by is presented in the Sebi consultation paper. As on February 2023, fine, but the various mutual fund products in terms
markets regulator Sebi on 18 May to revisit the total 58%, 67.28% and 73.34% of active equity schemes (regular) have former is not of their primary benefit is useful. For
expense ratio (TER) of asset management companies (AMCs) and underperformed the benchmark for 1 year, 3 years and 5 years. easy example, index funds’ advantage is risk
to introduce performance-linked fees. As expected, it received These performance matrices raise questions about the superior- diversification and not to outperform
considerable media attention, mainly covering the impact of the ity of professional management of mutual funds as being claimed. benchmark return, whereas a sectoral
proposed changes on the business of AMCs, distributors and One of the explanations for the underperformance of many or thematic funds’ main goal is return enhancement. A benefit-o-
investors. However, this article draws attention to some funda- active equity funds is that they are not taking sufficient risks and ing higher returns, albeit at higher risks. Such funds may com- meter approach may be needed. Categorisation of equity prod-
mental issues intrinsic to performance of mutual fund products. are broadly following the underlying benchmarks and hence on promise on the benefits of diversification. Of course, the regula- ucts between diversifier and return enhancer will enable inves-
Mutual funds offer value to investors by way of efficient portfo- post cost basis they underperform the benchmarks. Such funds tions do ensure some minimum level of diversification across all tors to make appropriate decisions. This has implications for per-
lio diversification and professional fund management. Hence the are popularly referred as closet index funds. Given no superior funds. Another explanation of ‘underperformance’ is the doubts formance measurement and evaluation. The journey towards
emphasis on mutual funds as the ideal way for retail investors to performance, investors would be better off investing in low cost on the assumed superior skill set of fund managers. ₹100 trillion AUM will be rewarding to investors, especially retail
enter securities markets. The basic premise of mutual investing index funds than such closet ones. What needs to be understood There are a number of reasons why incentive fees are consid- ones, if mutual fund products deliver what they claim, and dem-
is diversification. The benefits of diversification were known, is that to produce higher return than the benchmark, active risks ered desirable. The oft-cited reason is that incentive fee aligns onstrate the claims to investors in clear and simple terms.
even before a mathematical formulation in the ‘modern portfolio are required to be taken which may come at the cost of diversifi- manager interest with investor interests. However, return-based Dr CKG Nair is the director, and Dr Rachana Baid is professor
theory’ of Harry Markowitz (1952). It is based on the old axiom of cation. A concentrated portfolio may have the potential of offer- performance fees may lead to managers increasing the risk expo- at NISM
14 WedneSday, 7 June 2023

MuMbaI VIEWS LIVEMINT.COM
OUR VIEW MY VIEW | ON THE OTHEr HANd

ISTOCKPHOTO
Morgan Stanley’s report on India

is an exercise in cherry-picking
It shows only one side of the story and seems aimed at building a narrative to drive up stock prices
2008-09. In the last 10 years, it has whereas there are waiting periods for
ranged from 1.2% to 2.1%. SUVs. Airline travel in 2022-23 almost
A case is made for how India’s corpo- recovered to pre-pandemic levels, but
rate income tax rate is now in-line with non-suburban rail travel was more than
peers. In fact, the corporate income tax 29% lower than in 2018–19. Sluggish
collections peaked at 3.9% of GDP in rural consumption finds no mention.
2007-08 and fell to 3.5% in 2018-19, the Interestingly, the report has a chart of
year before the pandemic struck. It was the money invested by foreign portfolio
at 3% and 3.1% in 2021-22 and 2022-23. investors (FPIs) in Indian stocks and
VIVEK KAUL The post-2019 fall in corporate tax debt. FPIs brought in the most money
is the author of ‘Bad Money’. collections was because of the cut in into India in the years before 2017-18. Of
corporate income tax rate in September course, 2020-21, when Western central
2019. Here’s the thing: The corporates banks cut interest rates to almost zero
have earned windfall profits post-2019 was an exception.
Earnings of India Inc

because of lower interest rates and Finally, in 2015-16, the size of India’s
A
fundamental skill needed to be increasing economic formalization. agriculture sector was around 4% big-
an investment manager or stock- Indeed, the sample of more than ger than manufacturing (in nominal
broker is the ability to talk up the 30,000 companies, both listed and terms). In 2022-23, agriculture was 25%
future prospects of the economy one is unlisted, tracked by the Centre for bigger than manufacturing. This
have not disappointed operating in. Common sense suggests

that fund managers should be talking
up the prospects of specific stocks, but
that doesn’t happen often because
Monitoring Indian Economy, suggests
that from 2018-19 to 2021-22, total sales
went up 21%. Profit after tax—thanks to
lower tax rates and lower interest
despite increasing tariff protection and
programmes like production-linked
incentives to encourage companies to
make in India. The MSR report gives
many fund managers aren’t allowed to rates—went up by a whopping 237%. In this a complete miss. The history of eco-
do that. Also, if the idea is to attract comparison, tax provisions of these nomic development tells us that no
Healthy macroeconomic fundamentals have underpinned their growth in the last quarter, investments from foreigners—who are companies increased by just 37%. country has gone from being a develop-
more interested in making a country- Clearly, the corporate tax rate cut has ing country to a developed one without
but the possibility of El Nino and developed economies slipping into a recession pose risks level allocation than investing in a spe- come at a great cost, with individuals moving people away from agriculture
cific stock—it makes more sense to talk having to make up for it by paying more into manufacturing. In India, the oppo-
up economic prospects. tax. site seems to be happening.
So, it’s hardly surprising that many Another point made is how inflation So, this leads us to the bigger point:
O
ne worry that has troubled had a healthy quarter aided by sustained post- such reports on India have been pub- has been lower post-2014. That’s true. How can any serious report on the
observers about Indian shares pandemic demand. This also helped airlines, lished over the years, where the future Nonetheless, in 2011-12, 2012-13 and Indian economy ignore all this impor-
prospects of the economy are talked up 2013-14, the average price of the Indian tant data? This can only be done when
trading near their all-time even as they benefited after Go First went into to make a case for investing in stocks. basket of crude oil was higher than $100 the idea is to cherry-pick to build a nar-
peaks is that corporate earn- insolvency due to unrelated engine-related One such report was published by Mor- per barrel, which hasn’t happened rative and hence, leave out any nuance.
ings have seemed to lag. The issues. Airfares on some key routes have spiked gan Stanley Research (MSR) recently, since. A mention of this was necessary. This is not to say that everything is
earnings season just ended, owing to high demand and limited seat availa- stating that India has transformed in Of course, like every other report doomed. Not at all. The investment
however, would help allay some of those wor- bility. Add to it, oil prices have been stable, less than a decade. It builds its case by these days, MSR points out how Indians scene seems to be turning around. Bad
highlighting 10 big changes in the have taken to paying digitally like fish to loans of banks and corporate debt have
ries. India Inc’s report card for the three which should keep aviation turbine fuel costs Indian economy while cherry-picking water. While this suggests convenience both come down. Goods and services
months ended 31 March has been good, with in check. For now, the government has asked data and leaving out nuance. for consumers and better data for the tax collections have improved thanks to
financials and automobile sectors featuring airlines to check fares by themselves. If it later Take the gross foreign direct invest- government and financial firms, it in no better implementation. Also, services
among the top performers. Margins for banks deems a direct intervention necessary and ment (FDI) coming into India, which way suggests an increased ability to exports are looking up.
have gone up thanks to increases in lending imposes a fare cap, the good run could stum- the report shows as an upward sloping consume things. Most of these transac- The stock market may do well irre-
curve. The gross figure doesn’t take into tions are of low value and were already spective of how the economy does. The
rates tracking the rapid rate hikes in the ble. Still, with seat availability unlikely to rise account the repatriation/disinvestment happening in cash before. economy’s rising formalization might
Reserve Bank of India’s (RBI) policy rates. soon, the outlook largely seems positive. that happens every year. It also doesn’t Also, there is no mention of the be one reason. Second, if central banks
With bad loans down, bank balance sheets More broadly, prospects for corporate India take into account the increasing size of K-shaped consumption post the pan- in the West go back to a low interest rate
cleaned up and credit growing at mid-teen are looking up thanks to an economy that has India’s economy. Once we do that, the demic. Two-wheeler sales in 2022-23 policy, money might come pouring in
rates, money has been flying off bank counters been defying the odds. The latest gross domes- figure for 2022-23 stands at 1.2% of were similar to those in 2014-15. The and drive up stock prices like in 2020
GDP, having peaked at 3.5% in sale of entry-level cars has crashed, and 2021.
in spite of borrowings getting costlier. Of tic product (GDP) data placed its expansion at
course, deposit rates have been raised too, but 7.2% in 2022-23, which outdid the predictions
they typically tail lending rates on the way up of economists. For 2023-24, the Union budget
so that bank profitability isn’t hurt. With RBI has assumed nominal growth of 10.5%. By
keeping its eyes glued to inflation, a reversal in implication, expecting corporate earnings to
its policy may yet be far, which could enable a grow by at least that much would be fair. Also,
sustained outperformance for lenders. inflation is now within RBI’s comfort zone, but www.livemint.com
New Delhi, Mumbai, Bangalore, Kolkata, Chennai, Ahmedabad, Hyderabad, Chandigarh*, Pune* Friday, June 7, 2013 Vol.7 No.135 `3.00 in DelhiNCR/`4.00 outside DelhiNCR 24 PAGES
+ 4 MARKETS PAGES
Automobile sector earnings have been in an El Nino effect could hurt farm output while Q&A:Infrastructure target
feasible: BK Chaturvedi >6
NATION: Centre returns Bengal Bill aimed at
protecting investors from pyramid schemes >7
high gear too as sales have been healthy while the production cut by Saudi Arabia could stoke CONTENT PARTNER
ENERGY: Coal India signs nondisclosure
pacts for mine buys in Australia >8
WSJ: Shortages of drugs threaten
The extravagant
tuberculosis fight >20
commodity prices have cooled. This has low- energy costs. There are also risks looming over SENSEX 19,519.49 æ 48.73
NEW CLARIFICATIONS
NIFTY 5,921.40 æ 2.45 DOLLAR `56.84 æ `0.11 EURO `74.82 æ `0.70
KHIN MAUNG WIN/AP

GOLD `27,570 Æ `465
RIL to invest
OIL $103.53 Æ $0.49
QUICK EDIT
Govt tightens `1.5 trillion Reckless
ered input costs even as companies have raised the global economy, especially of the US and multibrand
over 3 years
B Y A VEEK D ATTA,
P .R . S ANJAI & B LOOMBERG
·························
banking
I t is good that a senior
official from the
finance ministry has
done some plain talking.
expenditure of public
prices. Further, with the chip shortages having other big economies slipping into a recession. retail rules
MUMBAI
Rajiv Takru, secretary,
R eliance Industries Ltd

(RIL) will invest `1.5 tril-
financial services, pulled
up banks for “reckless”
money is an evil not to be

lion in the next three years as lending practices. The
the company dramatically asset quality of Indian
steps up expansion of all its banks is deteriorating in
businesses in the biggest such tandem with the overall
Govt says 50% of total vestments as proof of having programme in its four-decade economic downturn, but
investment to be in met the criteria. history, and, according to a the underlying message
eased, assembly lines have been functioning If these materialize, we could see corporate
And foreign retailers can’t company executive familiar in what Takru has said is
backend infrastructure; buy existing stores. with the plan, seeks to increase that bankers made things
foreign retailers can’t British multi-brand retailer the share of revenue from new worse by their casual due
Tesco said that the company ventures such as retail and diligence practices.
buy existing stores was still reviewing the policy broadband to as much as 40% There is no reason to
measured by the value of

and would not be able to com- from around 3% now. disagree with Takru. It is
B Y A SIT R ANJAN M ISHRA & ment on it. Carrefour declined “Reliance is making signifi- an open secret that many
S UNEERA T ANDON to comment. A Bharti Wal- cant investments in all five of the companies that
························· mart spokesperson said: “We businesses simultaneously— received large bank loans
with fewer disruptions. However, global earnings take a hit. That may result in share
NEW DELHI
are studying the government’s exploration and production, during the boom years
I ndia tightened its already

restrictive policy governing
foreign investment in su-
permarkets (or multi-brand re-
tail) by issuing several clarifica-
clarification on FDI policy for
multi-brand retail trading, is-
sued today.”
A lawyer said the clarifica-
tions would further dampen in-
petroleum refining and mar-
keting, petrochemicals and re-
tail and 4G,” chairman Mukesh
Ambani said at the 39th annual
general meeting (AGM) of the
have all sorts of problems
—from excess leverage to
corporate governance.
The only question worth
adding is: what role did
tions on Thursday. terest in the business. “The pol- firm in Mumbai on Thursday. the government play in
that money to the people

The clarifications said: 50% icy brings us back to the gov- RIL has been looking for new this loose lending, since
of the total investment in su- ernment’s basic focus area of Speaking her mind: Myanmar opposition leader Aung San Suu Kyi at ways to tap rising incomes in it controls the public
demand has been under a cloud. This has valuations being downgraded. For now,
permarkets have to be in so- improving and developing new the World Economic Forum on East Asia in Nay Pyi Taw on India, said the executive, who sector banks? Is it mere
called back-end infrastructure; infrastructure in the country. Thursday. Suu Kyi said she wants to run for president in elections two did not want to be identified coincidence that some of
the company can’t acquire sup- So it has permitted investments years from now. See Page 3 because the plan isn’t public. the largest problem
ply chain or back-end infra- in greenfield assets and also in- borrowers for Indian
structure from other existing vestments in new front-end ALSO SEE TURN TO BACK PAGE ® banks in recent years are
companies; and franchising stores and not through acquisi- new infrastructure
isn’t a route through which tion of existing stores,” said La- >Myint Thant: If Myanmar has to be a
gateway, focus on NorthEast is critical >P4
>Myanmar diary | Of the rule of law and
unique traffic quirks >P3
ALSO SEE groups with strong
these companies can expand to lit Kumar, partner at law firm J >Shyam Saran: Myanmar key passageway > India looks to set up a bank through JV >Mukesh Ambani for Prime Minister, say political connections?
states that do not allow foreign Sagar Associates. for integration with SouthEast Asia >P5 route in Myanmar >P3 RIL shareholders >P24
weighed on those focused on exports. Domes- though, given a stable macroeconomic envi- who are taxed for it.
direct investment (FDI) in su- India allowed FDI of up to
permarkets. 51% in supermarkets almost
The clarifications resolve nine months ago, but the move
confusion about whether the
50% in back-end condition ap-
is yet to attract significant inter-
est from retailers. Meanwhile, 3D’s extra
plied to the minimum required
investment of $100 million or
the first tranche of investment.
the industry department in the
ministry of commerce said it is
still discussing restrictions on
dimension,
It means companies such as sourcing and time limits on in-
bigger bucks
tically, demand has been improving though, ronment, it’s possible they could hold strong.
Wal-Mart and Carrefour that vestments in back-end infra-
have invested in so-called structure. Several global retail-
cash-and-carry chains (or ers such as Tesco and Carrefour B Y N ANDINI R AMNATH
wholesale chains) through In- had sought clarifications on a nandini.r@livemint.com
dian partners will have to make number of issues. ·························
MUMBAI
further fresh investments in “Entire investment in back-
back-end infrastructure and
cannot show their existing in-
end infrastructure has to be an
additionality. The entity can in-
vest only in greenfield assets
T he glasses aren’t always
right. The picture isn’t al-
ways bright enough. The tick-
especially for premium products. The troubles At a price-to-earnings multiple of 23, they may
NOTE TO READERS and it will not be possible to ac-
quire supply/chain/backend
ets are always too expensive.
Despite the mixed feelings of
The Media Marketing Initiative on assets or stakes from an exist- some viewers towards 3D
ing entity,” the industry depart- (three-dimensional) movies,
C he ste r A . A rthu r
Page 2 of Mint Markets is the
equivalent of a paidfor ment said in its clarification is- they keep coming our way,
advertisement, and no Mint sued on Thursday. mostly in English, occasionally
journalists were involved in The department also clarified in Hindi, and now in Marathi
creating it. Readers would do well that 30% sourced through small and Tamil. Mahesh Kothare’s
in the rural economy have been a matter of be trading higher than the average late-teen
to treat it as an advertisement. industries has to be sold Zapatlela 2 opens in 2D and 3D
through the front-end stores versions on 7 June—a first for
and cannot be distributed Marathi cinema—while
through its cash-and-carry Soundarya Ashwin’s animated
business or exported for the feature Kochadaiyaan is
global operations of the foreign scheduled to open in July. The
investor. rest of the year has several
Akash Gupt, executive direc- English releases, including
tor at PricewaterhouseCoopers, Man of Steel, Pacific Rim and
concern, although a rise in two-wheeler sales levels considered fair for India. But then, when
said this is a limiting condition. the animated features Monsters
“If companies want to start University and The Smurfs 2.
sourcing from SMEs (small and “3D is one technology that
medium enterprises), they has really caught on,” said
should have the flexibility to Devang Sampat, head (strate-
source it for other distribution gy) at Cinepolis India, which
channels such as business-to- has 59 screens. “People go in
business or even export pur- for 3D effects, especially if it’s a
poses. Investors who were Hollywood movie. Between 2D
holds out hope of a pick-up in demand. In the future looks promising, investors often are
looking at entering the Indian and 3D, the collections used to
market will now have to go be 50:50, now it is 10:90.”
back to their drawing board For Kothare, making a 3D
and relook at how to comply film was the best way to revisit
Mint is also available for R7 with
Hindustan Times in Delhi-NCR only TURN TO PAGE 2® TURN TO PAGE 10®
addition, travel and tourism, and hotels too, willing to look past buzz-kill numbers.
MY VIEW | EX MACHINA
It is inexplicable that the ‘empty mile’ issue is not solved

nearest distribution point. But it is within day, painfully analog—relying on paper over six years ago, I had argued for the APIs currently offer only basic informa-
RAHUL MATTHAN this leg of the supply chain that there exist manifests and third party brokers for various “Uberisation” of national transport. “It’s tion—vehicle and driver data as well as eWay
inefficiencies that need to be urgently legs of the journey. When recorded in this hard to comprehend,” I argued, “why tech- bill numbers—that can be used to track con-
addressed. format and intermediated by third party nologies which have proven so successful in signments across multi-modal transport ser-
The scourge of overland transport is, what brokers, it is highly unlikely that any empty managing movement within the city, are not vices till they reach their final destination, it
is referred to within the industry as “empty miles that exist will be capable of being mon- being deployed for the journeys between is possible to see how this digital infrastruc-
W
e are today just a click away from miles”—the distance a freight truck has to etised. As a result, the demand for empty them. Why, for instance, do truck drivers ture could be adapted to solve the empty
anything we want. Entire ecosys- travel carrying no cargo. In 2020, this trucks remains unfulfilled still have to transport the mile problem.
tems have been built to get us the accounted for nearly 20% of the total road even as trucks continue to same cargo trailer from the We could, for instance, identify all the
things we want in the shortest possible time freight transport in Europe alone—a num- drive back empty. Digital origin of the journey to its transport vehicles at a given location that are
and at the lowest cost. As a result, we have ber which by all accounts is not much better This, if you think about end. Would it not be more scheduled to return unladen to their home
seen a rapid proliferation of warehouses, in other countries. Industry leaders wryly it, is a problem we already infrastructure efficient if trailers were location so that any consignor looking for a
optimally located to ensure that fast-moving point out that the most-shipped good on the know how to solve. designed to be transported truck to transport their goods in that general
products reach their intended recipients as planet is air. Apart from not earning the No more than a decade
can aid demand using a hub-and-spoke destination has a set of transporters they can
is a partner at Trilegal and also

quickly as possible. As well as massive global
sourcing enterprises that are constantly on
company any revenue every time they
return home empty, it is estimated that
ago, you could have been
waiting to hail a taxi on a
find logistic model where trucks move
trailers from one hub to the
choose from. If this information is made
available through an open API accessible by
has a podcast by the name Ex
Machina. His Twitter handle is
the look-out for sellers who stock products
as diverse as desk ornaments and the desks
trucks that run empty emit as much as 76
million metric tons of CO2 every year.
road when just one road
down there could have
supply so that next instead of all the way
across the country.”
any logistics provider, it would be possible to
find a way to bring demand to meet supply.
@matthan on which they sit. Carriers are trying to take steps to been a long queue of no goods carrier While the particular Elsewhere in the world, this is a problem
Behind all this is a largely unseen trans- improve the situation. Wherever possible, empty taxi cabs that were solution I was arguing in private companies are looking to solve. They
portation and logistics industry that works they are looking to improve network plan- similarly waiting for a fare returns empty favour of remains unful- are entering into arrangements with logis-
silently in the background to move these ning to consolidate shipments into larger to find them. We no longer filled, we have today a tics companies and consignors to bridge the
packages from place to place. This, given the and larger containers in an effort to reduce worry about that because brand new digital public gap between supply and demand.
demand, takes place at a frequency unprece- the number of empty containers being used. mobile applications like Uber and Ola lever- infrastructure (DPI) in the logistics space This, in a country as vast as India with its
dented in human history and using a num- But this can only go so far. Some ship- aged the GPS capabilities of modern smart- that could prove to be promising. disorganised and distributed transportation
ber of different modes. ments, particularly the more specialised phones to find a way to bring the demand The Unified Logistics Interface Platform industry, is unlikely to succeed. What will
Among these, by far the most common is ones, are one-way only, leaving the truck no (us) to meet the supply (taxis). If we could is an Application Programming Interface work, however, is a population-scale DPI
overland transport—where trucks of all option but to return to its origin with no find taxis for humans, should we not be able (API)-based data exchange system that has that makes this data accessible through open
shapes and sizes are used to move packages cargo. This is further complicated by the fact to find cargo for empty trucks? been designed to enable innovative solu- protocols, which private entrepreneurs can
cross-country or from warehouses to the that much of the industry remains, to this In an article that appeared in this column tions in the logistics sector in India. While its use to build solutions that work at scale.
LIVEMINT.COM VIEWS WeDnesDAy, 7 June 2023

MuMbAi 15
THEIR VIEW M I N T C U R AT O R
An Expenditure Council could Do not dismiss Apple’s pricey

new headset too prematurely
help promote fiscal prudence The Vision Pro has turned mixed reality computing interesting
Such a GST Council-like body can advise states on spending matters to ensure the best possible allocation of scarce resources
PTI
DAVE LEE
Bloomberg Opinion’s US technology
columnist.
BIBEK DEBROY & ADITYA SINHA

are, respectively, chairman and additional
private secretary (policy and research),
Economic Advisory Council to the Prime
Minister
L
et’s start with a big caveat: We don’t
know how Apple’s Vision Pro headset
T
he debate on governmental ‘freebies’— will handle the real world. After years
offering goods and services free of cost of anticipation, Apple on Monday unveiled It has creases, but these will get ironed out
or at heavily subsidized rates even to the headset—which mixes elements of the as the technology evolves BLOOMBERG
the people who might not need them— digital and physical world—and offered big
has its roots in the issue of countries’ promises on mainstream potential. can be made to users who are on iPhones or
wasteful expenditure, which is a subtle Only extensive use of the device will iPads, for instance, and wellness features
yet potent deterrent of economic growth. Such reveal whether Apple has another iPhone- pair up with the Apple Watch. In the office,
spending may bring short-term benefits, but even- like hit on its hands—or rather, on our the link between MacBook and headset
tually, it risks upsetting fiscal balance, outcompet- faces. Will it be comfortable to use the leaves clunky virtual reality office software
ing productive investments, and amplifying device for extended periods, or will it make offered by Meta and others in the dust.
income inequality. This issue draws an uncanny some users queasy? Will we adjust to wear- Ironically, Facebook parent Meta might
resemblance to the timeless wisdom imparted by ing what looks like high-tech ski goggles, benefit from the Vision Pro rollout. Its
Adam Smith in The Wealth of Nations, where he or will it feel silly to put it on in public? Will headset is available today, and costs just a
emphasized the judicious use of resources as an consumers be willing to spend $3,499 on fraction of the Apple device. The new Meta
essential element of national wealth. Any deviation the device once it goes on sale next year? Quest 3, announced just last week to grab
from this principle invites inefficiencies and can Wall Street evidently wasn’t impressed a few days of headlines before Apple’s
even instigate an economic downturn. by the price or the time frame: After a day launch, costs $499 and already boasts a
Linking this to the Indian scenario, it under- of stock market gains, Apple’s shares fell as healthy catalogue of apps and games.
scores the pressing need for a supervisory body— the world took in what the company had But in time, Apple’s product ecosystem
perhaps an Expenditure Council (EC), just like the spent years developing. But it’s way too will surely win out, making Vision Pro, and
GST Council. Its role would be to formulate guide- What about the Niti Aayog? Could this organiza- aim to achieve consensus on spending items that soon to write off Apple’s entry into what whatever iterations follow, a market
lines and foster agreement on the best practices for tion take the reins? Once again, the reality is multi- are considered populist and lack long-term bene- the company called “spatial computing.” leader—albeit in a product segment that, at
state governments in terms of resource allocation. faceted. The Niti Aayog is burdened with numer- fits, and suggest states to refrain from them. Indeed, even if Apple’s initial device fails to around 35 million users in the US, is still
With a clear expenditure roadmap, the focus could ous responsibilities, making it difficult for it to In terms of functionality, the EC would meticu- gain traction, what we saw at Monday’s small. To greatly increase adoption, Apple
be on implementing schemes that encourage shoulder this task in a post-Planning Commission lously analyse state-level schemes and budgets, launch demonstrated potential for becom- needs to rally its vast legions of third-party
inclusive growth, promote sustainable develop- landscape. Furthermore, states may not be keen to identify unnecessary expenses, and recommend ing an essential new computing platform. developers to create innovative uses for
ment, and maintain fiscal health. In doing so, the collaborate with it on fiscal matters. strategies for their reduction or alteration. It would Apple has done what many technology what is currently an extremely expensive
nation’s long-term prosperity and the well-being The third player is the Finance Commission. Its also regularly publish reports and guidelines, pro- observers had thought impossible. It has device. A deal with games development
of its people are safeguarded. mandate involves recommending the division of viding a roadmap for state governments to follow. made mixed-reality computing interesting platform Unity is a start—and compatibility
By exercising such financial prudence, the states tax proceeds between the Union and states, estab- One of the key principles guiding the EC’s oper- and appealing. Unlike competing devices, with existing iPad augmented reality apps
can divert the resources used on ‘freebies’ to areas lishing principles for revenue aid grants from the ations would be consensus building. Rather than which leave the wearer feeling closed off, means there will at least be some things to
that require more attention which could result in Consolidated Fund of India, and handling any imposing decisions, it should foster dialogue and Apple is promising a device that reduces do from day one. But it will be a challenge
sustainable development. The dilemma over free- financial matters referred to it by the President. cooperation among states, facilitating the attain- the intrusiveness of the technology as to convince developers to pour resources
bies, therefore, becomes a question of prioritizing While interacting with states, the Commission ment of shared understandings. This is crucial much as possible. The headset wearer’s into a device that for a long time will have
resource allocation, which is where an Expendi- lacks the platform for both central and state gov- keeping in mind India’s federal structure, where eyes are visible to those around them, a tiny number of users.
ture Council could play a vital role in guiding state ernments to collaboratively strategize on the most states have distinct rights and responsibilities. allowing a simulation of eye contact with- Until then, it will feel as though the
governments. efficient use of resources. One must also bring Regarding voting, the decision-making mecha- out needing to remove the device. It’s a fea- device doesn’t do all that much beyond
Union-level commissions like the Expenditure together the recommendations and views of state nism would mirror that of the GST Council. The ture that in time I expect will become stan- recreating existing things we do—stream
Reforms Commission (ERC), set up by the Atal finance commissions. Union finance minister would hold a third of the dard on every mixed-reality device and will movies, browse the web or take part in
Bihari Vajpayee government in 2000 under K.P. Thus, there is a need for an EC to prioritise the voting power, while the combined states possess feel so obvious that we’ll forget it ever video calls—only in a way that feels bigger
Geethakrishnan, have examined India’s expendi- areas, especially on the concurrent list where the remaining two-thirds. Any decision would needed inventing. to the eye. But that’s the reality of a first
ture patterns. Its primary goal was to curb non-de- states can spend efficiently. The council should necessitate at least three-fourths of the total votes A dial on the unit allows the wearer to version. The first iPhone didn’t have an app
velopmental government expenditure and kick- also come up with areas that the states should to pass. Finally, a robust dispute resolution mecha- increase or decrease the level of immersion store. The Apple 1 computer, released in
start organizational downsizing. Similarly, the Nar- avoid spending on. nism should be established to efficiently handle depending on personal preference. Dial it 1976, barely did anything at all by today’s
enda Modi government formed an Expenditure The inception of an EC, modelled after the GST disagreements or disputes that might arise from its one way to block out the world around you, standards. As it happens, that first Apple
Management Commission led by Bimal Jalan in Council, necessitates an intricate understanding of decisions. This holistic approach would ensure or open things up if you would rather not computer cost $666, or about $3,500 in
2014 to recommend spending reforms. However, its structure, operations and jurisdiction. Firstly, that the EC is well-equipped to handle the complex feel shut off from your surroundings. This today’s dollars.
no such body facilitated a consensus-building plat- the EC’s composition should echo the GST Coun- nature of national financial planning, promoting choice will likely make it more practical to Both the iPhone and the Apple 1 spoke to
form between states and the Centre. cil’s structure, with the Union finance minister sustainable growth and economic stability. Con- wear for longer periods. a computing future that until that point
Is there an existing platform where state author- chairing it. Additional members should include vincing states to be part of EC would be tough, but Navigation in the device is controlled hadn’t been fully imagined. In time, the
ities can converge to discuss and optimize financial the minister of state in the ministry of finance and it is not intractable. with your eyes and your hands and not, as cost of Vision Pro will drop; the battery
strategies? It’s not as simple as it seems. We have finance ministers from all states and Union territo- Reforms are like strategic chess moves in the Apple’s presentation made note, using the pack will become unnecessary and other
the National Development Council (NDC), an orga- ries possessing legislative assemblies. This ensures grand game of economic growth. They may clunky controllers needed for other devi- limitations will be ironed out. The device
nization linked to the Planning Commission. How- a comprehensive representation of India’s diverse involve sacrifice and are often a win-lose situation. ces, such as those for rival Meta Platforms will get thinner, lighter and cooler.
ever, with the dissolution of the Planning Commis- regions, promoting inclusive decision-making. The autonomy of states resembles the chess pie- Inc.’s Quest headset. The new operating Apple can’t claim to have invented
sion, the relevance of the NDC has faded. It still Secondly, the EC’s principal objective is to pro- ces, diverse yet united by the goal of India’s pros- system, visionOS, keeps the visual lan- mixed reality, of course, but in its typical
exists on paper, but its functioning is practically mote financial responsibility by setting guidelines perity. Curbing populism is like taming eager guage of the iPad and iPhones, and with it, fashion it has brought innovation and
non-existent. Though, technically, the governing that discourage extravagant and populist expendi- pawns, prone to short-sighted moves. The game a sense of familiarity with how apps work. smart design to a category that had been
council of Niti Aayog can be presumed to be an tures. Instead, the focus is shifted towards prudent, demands balancing aggression with sustainability All this is made possible by Apple’s exist- severely lacking in both. Just don’t call it
NDC with a different name. strategic and sustainable resource allocation. It will and forsaking quick wins for a developed India. ing dominance in hardware. A video call the metaverse, OK? ©BLOOMBERG
THEIR VIEW
The bans on futures trading in farm products should go

farmers often switch crops that require similar lost. What started off as bans on tur and rowed the basket of commodities that are vulnerable to shocks. Even a normal mon-
MADAN SABNAVIS geographic and soil conditions. moong, have now been widened to cover now available. Volumes of trading in farm soon does not preclude certain areas and
It was with this objective that the Forward chana, soybean, soy oil, mustard seed and products for NCDEX had peaked at ₹16.64 hence crops from receiving less rainfall, thus
Markets Commission (now merged with wheat. In all these cases, there were robust trillion in 2011-12. Subsequently, there was running the risk of lower production. The
Securities and Exchange Board of India, or price-discovery processes in place. Frequent a sharp and continuous fall to ₹8.70 trillion futures market picks up these signals. This is
Sebi) regulated the contracts; and commod- bans lessen the credibility of the market as in 2014-15. An improvement followed in useful not only to farmers and value-chain
W
hen the commodity derivatives ity exchanges facilitated them among trad- players tend to lose money when such deci- 2015-16 to ₹5.96 trillion, after which the participants, but also the government. A rise
market was opened up in 2002, ers. NCDEX became the preferred exchange sions are taken. downward descent in futures prices before harvest indicates an
which led to the creation of new for farm products while MCX dominated the In fact, deliveries have resumed to ₹2.02 trillion in expected shortfall in output and can trigger
online multi-commodity exchanges, the energy, metals and bullion markets. To been robust in India unlike Derivatives 2022-23. There is a need to an appropriate response from the govern-
goal was to enable better price discovery. begin with, progress was remarkable as in other countries, even reconsider these bans. ment in the area of imports or exports.
The focus was on agricultural commodities NCDEX got in the value-chain participants though delivery is typically enable efficient One thing which has Therefore, there is strong reason to
where it was believed that a vibrant futures to trade in products such as oilseeds com- an expensive proposition. been established by Sebi revoke the ban on futures trading in all prod-
market would provide the right signals to plex, pulses, sugar, wheat, spices (jeera, chili, But this has lent credibility
price discovery and the exchanges is that ucts, which range from pulses to cereals and
is chief economist, Bank of

farmers on what to grow and when as well as
where to sell.
turmeric and dhaniya) and guar. While the
goal was to reach out to the farmers ulti-
to the system as it brings
value-chain members on
and send signals the regulatory processes
are in place and are being
oils, to ensure that there functions a market-
oriented system that provides the right sig-
Baroda, and author of ‘Banking
Trends and Controversies’
It is known in the field of agriculture that
there exists the cob-web syndrome. Farmers
mately, given access issues, price signals
were picked up through intensive price dis-
board. It also confirms that
it is not a speculative mar-
that aid better followed to ensure that
there is no space for manip-
nals. This will help the farmers, hedgers (val-
ue-chain players) and the government. Price
choose the crop to sow based on prices semination processes set up by the ket, as has been made out decisions by all ulation of the markets. hedging by farmers will also be useful for
received in the previous season. Hence if the exchanges. Subsequently, with Sebi for- often by lobby groups. There are position limits in banks, which run the risk of building up bad
price of soybean was high in 2022, there mally taking charge of oversight of these Ensuring deliveries has led participants place to ensure that there is loans if crops fail. Vested interests should
would be an inclination to grow more of this markets, the push was given to bring in the to the development of a no cornering of the market not be allowed to prevail and politics should
crop. The result is over-supply, which farmer producer organizations (FPOs) to transparent logistics eco- and the price limits control definitely be kept out of it. The farm sector
depresses prices. Ideally, farmers should be educate and enable them to play the role of system, which includes systems of grading volatility. Curiously, every time there has is in need of booster reforms and removing
looking at the futures prices, and if possible, aggregator to participate on these platforms. and standards, weighing, warehousing, been a ban which blame futures trading for the ban can be a good first step. The market
sell the crop in advance if the price is favour- However, there have been too many assaying, among others. This has helped the price increases, the exchanges have proved players also need to be assured that while
able. Deliveries are enabled if the parties so vested interests, which have led to political government develop the electronic national that the link does not exist, and also that after trading norms can be altered depending on
desire or the contracts can be reversed decisions being taken to ban futures trading. agricultural market (eNAM), which is an the ban, prices continue to move up as the the conditions (limits on prices and posi-
before due date. Either ways, the price has This has been a major setback for the mar- electronic spot market. supplies are low. tions), the edifice will remain intact. This is
been hedged. It has been observed that kets because useful price signals have been The results of the series of bans has nar- Agriculture continues to be an area that is too good a system to lose.

MuMbai
LIVEMINT.COM
Advertisement
SOME HONOURS ARE

WORTH FIGHTING FOR
Amit Kapoor M Govinda Rao Bibek Debroy Sameer Kochhar Sanjeev Sanyal Charan Singh Ravinder Singh Dhillon Rohan Kochhar
Institute for Member Chairman Chairman Member, EAC-PM CEO & Founder Director CMD, PFC SKOCH Group
Competitiveness 14th Finance Commission EAC-PM SKOCH Group EGROW
INDIA’S
INDIA’S H
HONEST
ONEST IINDEPENDENT
NDEPENDENT HONOUR
HONOUR
In
n
ndia's
dia's F
Fiinest in Economics Conferred SKOCH Award
Competitiveness Economic Policy Lifetime Achievement Monetary Policy Reforms

Amit Kapoor, Institute for Competitiveness Sanjeev Sanyal, Member, EAC-PM M Govinda Rao, 14th Finance Commission Charan Singh, CEO & Founder Director, EGROW Ravinder Singh Dhillon, CMD, PFC
Macroeconomics Gursharan Dhanjal Siraj Hussain Sanjaya Baru Rama Baru Amarjeet Sinha Vikesh Dhyani T Koshy
Vice Chairman Former Union Policy Analyst Professor, Public Former Co-founder CEO
Lekha S Chakraborty, Prof, NIPFP SKOCH Group Secretary Buy now on amazon.in Health, JNU Union Secretary Oakbridge ONDC
INDIA ECONOMIC FORUM 2023

9 Year Report Card
SKOCH Summit | 20th January 2024, New Delhi
1. Prioritise education and localised development strategies

foundational learning, particularly for cities
in underprivileged regions 7. Focus on sector-specific
2. Implement targeted policies and approaches to foster economic
STATE OF GOVERNANCE
RECOMMENDATIONS
investments to bridge regional growth and reduce regional
T
disparities disparities he SKOCH State of Governance report is the only Annual
3. Foster women's participation in 8. Address anti-competitive Flagship National Governance Timeline Assessment based on
the workforce by creating more distortions and supportcompetitive primary research and outcomes that measures the performance of
opportunities firms and private sector
Governments across as many as 35 g governance
overnance iindicators
ndicators tthrough
hrough sseveral
everal
4. Adopt sustainable practices and 9. Bridge credit outreach gaps, phases of periodic and intensive evaluation.
transition to renewable energy improve clean fuel access and
sources enhance women's education for In the run-up to the 2
2024
024 general elections, w
wee bring to you, the 9-year
5. Strengthen EoDB and enhance financial inclusion Report Card on the State of Governance in India. H1 will be released in
social policies for improved 10. Ensure public finance addresses July 2023 and the complete SKOCH State of Governance Report will be
quality of life the needs of the growing elderly released on 20th January 2024. We urge you to nominate and help make
6. Promote decentralisation and population. this study even more meaningful.
Nominate Now: award.skoch.in
info@skoch.in skochgroup skochgroup skochtv @skochgroup @skochsameer

Mint 07.06.2023?

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Mint 07.06.2023?

Uploaded by

Copyright:

Available Formats

https://snapfrom.com/ https://instagramvideodownloader.net/ https://instadl.

Wednesday, June 7, 2023

Adani Group set to revive SAT reverses Brickwork’s

For More ePaper Visit: https://www.fresherwave.com/

For More ePaper Visit: https://www.fresherwave.com/

Wednesday, June 7, 2023

mint primer QUICK EDIT

The story behind Call

Jeetu Prajapati was declared dead,

STO C K TA L K DOWNLOAD THE

INDIGO PAINTS MARICO

For More ePaper Visit: https://www.fresherwave.com/

Indian goods exports

India's non-oil goods exports Out of top 10 categories, four shrank,

Rice 11.1 15.2

Cotton yarn/fabrics/ 10.9

Plastic & linoleum 8.4 -14.9

Broad-based Decline The decline across groups is not

India's export drag extends beyond

Manufacturing Dilemma With mobile exports, imports of

PEANUTS by Charles M. Schulz

For More ePaper Visit: https://www.fresherwave.com/

Wednesday, June 7, 2023

Will the HDFC merger live Sequoia is now Peak XV

Adani set to revive Byju’s default could

For More ePaper Visit: https://www.fresherwave.com/

02 Wednesday, 7 June 2023

Bharat Bio seeks nod Procurement Delhi CM okays 24X7 opening

FOR ANY QUERIES/DELIVERY ISSUES

For More ePaper Visit: https://www.fresherwave.com/

For More ePaper Visit: https://www.fresherwave.com/

04 Wednesday, 7 June 2023

m MINT SHORTS Falling cost only bright Titan needs demand

Among top wealth capitals, India has the

LIVEMINT.COM DEALS, TECH & STARTUPS Wednesday, 7 June 2023

Discover the exciting possibilities of advanced

And many more....

06 Wednesday, 7 June 2023

ALL EYES ON RBI GOVERNOR;

potential FROM PAGE 1 Regulations, 2008, require

LIVEMINT.COM CORPORATE Wednesday, 7 June 2023

Sd/- BRIHANMUMBAI MUNICIPAL CORPORATION

For More ePaper Visit: https://www.fresherwave.com/

08 Wednesday, 7 June 2023

Honda’s new SUV aims Tata Consumer to enter new categories

to Elevate sales by 35% suneera.t@htlive.com

ENJOY SEAMLESS READING

Explore the largest collection of HT Brunch

Scan the QR code to access

For More ePaper Visit: https://www.fresherwave.com/

For More ePaper Visit: https://www.fresherwave.com/

10 Wednesday, 7 June 2023

Apple’s Vision Pro is a technical marvel. Will anyone buy it?

LIVEMINT.COM NEWS WRAP Wednesday, 7 June 2023

TwEETS & quOTES

IIFL Finance to raise A STORM IN THE SEAS Rich nations owe

to build submarines in India

to China for talks

12 Wednesday, 7 June 2023

WILL THE HDFC MERGER

Shayan Ghosh & Satish John

T he bank sees tremendous opportuni-

LIVEMINT.COM MINT MONEY Wednesday, 7 June 2023