THURSDAY, 18 APRIL 2024

16 pages in 1 section www.business-standard.com

NEW DELHI
~13.00
VOLUME XXXI NUMBER 1

COMPANIES P2 WORLD P8

HEALTH DRINK TO FOOD DRINK? DUBAI’S RECORD RAIN FLOODS

E-COM SELLERS IN REJIG MODE EXPENSIVE HOMES, HALTS FLIGHTS
P U B LIS H ED SI M U LT A NE O U SL Y FR O M A H ME D A B A D, B E N G A L UR U, B HO P A L , B HU B A N E S W AR , CH AND I GA RH, CHE NNAI , HY DE RAB AD , K O CHI , K OL K AT A, L U CKN O W , M UM B AI , NEW D EL HI A N D P U N E

NHAI TO MONETISE
2,741 KM VIA TOLL
RIGHTS, INVIT IN FY25
Wider social security net on
The National Highways Authority of India
(NHAI) is looking to monetise 33 stretches of
national highways during the current
financial year (FY25) through its toll operate
cards for informal workers
transfer (TOT) and infrastructure investment
trust (Invit). Cumulatively, the 33 stretches,
SHREYA NANDI & SHIVA RAJORA
New Delhi, 17 April EXTENDING COVER
spanning 2,741 kilometres earned
Around 295 million workers are registered on the

approximately ~5,000 crore revenue in
FY24. NHAI will have discretion to review and
change the list and modes of monetisation
based on its own plans, going forward. The
authority has so far issued 14 bundles of
national highways in the TOT mode.
Adanis inject ~8,339 cr
into Ambuja Cements
The Adani family on Wednesday infused an
additional ~8,339 crore in Ambuja Cements,
raising its stake in the company to 70.3 per
cent, to help the cement maker’s
manufacturing capacity. The Adani
family previously invested ~5,000 crore in
the company on October 18, 2022, and ~6,661
crore on March 28, 2024. With the latest
investment, it has completed ~20,000 crore
planned infusion, the company said.
PRIMED FOR SUCCESS
Top-performing stocks across sectors
may rise 20-40% over the next year,
driven by earnings growth and
bullishness on Dalal Street.
KRISHNA KANT & RAM PRASAD SAHU write 12 >
T
he government is
e-Shram portal, currently
working on a
strategy to
empower
> e-Shram card holders are ~2 lakh in ~1 lakh in case
millions of informal sector
provided with an accidental case of of permanent
4> workers and help them avail insurance benefit of death disability
of the benefits of several wel- > Ministries in charge of key government welfare schemes
fare schemes, such as housing, Traders at the Khaderpet wholesale market, the largest in Tiruppur, expect
will have to integrate their data with the e-Shram portal
health care, insurance, pen- sales to pick up after the Lok Sabha polls PHOTO: SHINE JACOB
sion, and foodgrain support.
Slowing exports, labour
The Ministry of Labour & NEW GOVT MAY KICK OFF PESTICIDE, SEED REFORMS P4 > be brought together on one
Employment is working to platform.
build a comprehensive data- Democratic Alliance (NDA) workers, etc. “All ministries will need to
base of unorganised sector government if it comes back to This database will be pre- focus on onboarding their
workers by merging the data
of the beneficiaries of existing
power. The move might bene-
fit close to 300 million e-
pared through a convergence
mechanism, by which relevant
databases concerning the
workers they are in charge of
crunch pinch textile hub
government welfare schemes Shram-registered workers. government departments will and ministries in charge of key
with the e-Shram portal, a sen- Launched in 2021 by the have to take ownership of the government welfare schemes SHINE JACOB
ior government official told labour ministry, the portal is e-Shram portal in terms of will also have to put their data Tiruppur/Kodumanal, 17 April KNITWEAR EXPORTS (in ~cr)
Business Standard. the national database of unor- onboarding their databases on and merge it with the e-Shram nAll India nTiruppur % share
3> This may be one of the pri- ganised workers that includes to the portal. As a result, wel- portal,” the official cited above The banks of the sacred river Noyyal, FY19 54,692
orities of the Bharatiya Janata agricultural, domestic, con- fare and social security told Business Standard. in and around Kodumanal, lie
27,650 51
Party (BJP) -led National struction, gig, and platform schemes and worker data will Turn to Page 7 > parched, yearning
FY20 53,199
for rain. Even the
27,280
51
trees in the Erode
forest division bear a FY21 46,890 53
AHEAD OF FPO, Vi ANCHOR BOOK SUBSCRIBED 2x yellowish hue.
Some 26 km east
of Tiruppur, India’s
24,750
FY22 60,950
33,525
55
SAMIE MODAK people involved with India’s largest FPO. third-largest — after Paytm and Life BATTLEGROUND knitwear capital, this FY23 61,764 56
Mumbai, 17 April A total of 74 schemes received allot- Insurance Corporation raised ~8,325 arid landscape is a
ments in the anchor category, with US- crore and ~5,627 crore, respectively, in
2024 stark contrast to the
34,350
Ahead of the launch of its ~18,000 crore based GQG Partners subscribing to their anchor rounds. Of the total anchor vibrant past of this FY24* 51,072 55
follow-on public offer (FPO), Vodafone ~1,347 crore worth of shares, nearly a book, 16.2 per cent was allotted to five region. Beneath Kodumanal lies the 28,091
Idea (Vi) has allotted 4.9 billion shares quarter of the available shares in the domestic mutual funds — HDFC, Motilal remnants of a once-thriving ancient * April-February Source: TEA
to anchor investors at ~11 apiece — the anchor category. Other large Oswal, Quant, Baroda BNP, and 360One civilization — a testament to Tamil
top end of the price band — raising subscribers included Fidelity, Stichting, — through 11 schemes. pride in its two-millennium-old RAJASTHAN WEARS RAM RELATED
~5,400 crore. The demand in the anchor Redwheel, Motilal Oswal Mutual Fund, A banker handling the share sale said: trade links with Rome and the
ON SLEEVE, CARRIES REPORTS
investor category was two-three times and Troo Capital. “The higher demand will spill over onto world beyond.
more than the shares on offer, revealed Vi’s anchor book allotment was the the main book.” Turn to Page 7 > Turn to Page 7 >
BUSINESS IN MIND P6 > P6 >

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zindagi mein aage badhiye
Large Cap Funds ke baare mein jaaniye

Adhik jaankari ke liye apne MFD/RIA

se sampark karein ya scan karein Advantages of Large Cap Funds

Exposure to large and well Offer diversification

established businesses and lower volatility

An Investor Education and Awareness Initiative

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2 COMPANIES
>
NEW DELHI | THURSDAY, 18 APRIL 2024 1

Health drink to food drink? Vedanta looks

IN BRIEF

Tata Comm profit declines to deleverage

marginally to ~322 crore in Q4 group by $3 bn
Tata Communications’ consolidated profit declined marginally to
~321.55 crore in the fourth quarter ended on March 31, 2024,
according to a regulatory filing. The company posted a profit of
~326.64 crore in the same period a year ago. The consolidated
E-com sellers in a rejig mode over three yrs
revenue of Tata Communications during the reported quarter Major players are working with sellers on their platforms to change the listing of products
increased by 24.5 per cent to ~5,691.7 crore from ~4,568.66 crore
in the same quarter a year ago.For the year ended on March 31, SHARLEEN D’SOUZA &
CHANGING COURSE Nestlé adds
2024, net profit declined to ~969.58 crore from ~1,800.87 crore at PEERZADA ABRAR sugar to infant
the end of 2022-23. PTI Mumbai/Bengaluru, 17 April n Amazon, Flipkart are working with
sellers to change the listing of products milk: Report

E
-commerce firms are
Samsung eyes ~10K cr TV sales expected to list prod-
ucts such as Horlicks,
in ’24, launches AI-driven sets Bournvita and Boost under
food drink, beverage and pow-
Samsung is targeting to cross ~10,000 crore sales mark from its TV der tags, according to people
business in 2024 in the Indian market led by growing demand and familiar with the matter.
premiumisation in the segment, a company official said. The firm, This comes after the
which introduced a new line-up of artificial intelligence (AI) Ministry of Commerce and
enabled TV sets, controls around 21 per cent of the volume of the Industry issued an advisory to
fast-growing Indian TV market, said Samsung India Senior Vice e-commerce companies on
President Visual Display Business Mohandeep Singh. PTI April 10 to remove Bournvita
and other products of that
nature from the health drinks
DS Group to spend ~125 cr in FY25 category on their portals. The
advisory followed a probe by
as Catch Spices enters ~1K-cr club the National Commission for
Protection of Child Rights
Homegrown FMCG firm Dharampal Satyapal (DS) Group is planning based on complaints it
to spend about ~125 crore this fiscal on advertising, marketing, received on the high sugar
stepping up distribution network in tier-II and -III cities and in content of such products.
quick commerce for its core brand Catch Spices, which has entered E-commerce industry
the ~1,000 crore club, a top company official said. The group plans sources said that major play-
to introduce new products such as rasam powder and others to ers such as Amazon and
suit tastes in south India under the brand as it seeks to penetrate Flipkart are working with sell-
in the region as part of an overall strategy to grow at a compound ers on their platforms to
annual growth rate of 30 per cent in the next five years. PTI change the listing of products
like Bournvita and Horlicks,
which are currently under the
MG Motor India to expand health drinks category.
“About 80 per cent of the
network in Tier-III,-IV cities compliance happens in 48
hours as it takes some time for
MG Motor India is driving towards tier-III and -IV the sellers to understand the
cities of the country with plans to establish 100 new guidelines etc," said a
new touchpoints by the end of the ongoing source aware of the matter.
financial year as part of its strategy to fuel the next These companies may change
phase of growth, MG Motor India Chief Commercial the listing of such products as
Officer Satinder Singh Bajwa said. With JSW Group "food drink, beverage and
coming in as an investor and becoming a JV partner with China's
SAIC, last month the firm announced plans to invest ~5,000 crore
and had set a target of selling one million units of passenger electric
vehicles in India by 2030 when the total market is expected to be 10
million units annually. PTI
If there is a market to invest in the Daimler’s first
Complaint filed after e-com cos
ask staffers to work on poll day
world, it is India: Lightspeed exec e-truck set for
A complaint has been filed against e-commerce major Flipkart
and Tata Group firm BigBasket for allegedly making delivery boys
work on the day of voting on April 19 in the state. In the complaint
filed before Tamil Nadu state election commissioner B Kothi
ARYAMAN GUPTA
New Delhi, 17 April
powder drinks,” he
pointed out.
Industry executives
explained that it is much eas-
ier for Indian players such as
Bigbasket, JioMart, Swiggy's
Instamart and Zomato's
Blinkit to change the listing as
they are following an invento-
ry-led model. "However, given
the control of these platforms,
it is surprising that these prod-
ucts are still available as health
and nutrient drinks on these
platforms," said another
source.
like Bournvita and Horlicks, which are
under the health drinks category
n It is easier for Indian players like
BigBasket, JioMart, Swiggy's Instamart
and Zomato's Blinkit to change the
listing as they are following an
inventory-led model
n Horlicks is the market leader in the
health food drink segment with
around 44% market share
n Bourn Vita, which has double-digit
market share with Boost and
Complan, has labelled its product as
cereal-based beverage mix
n The health foods drinks category,
which is nearly a $1 billion industry, has
already been witnessing a slowdown
Queries to e-commerce comply with the new norms.
players such as Amazon and Bournvita, from the house
Flipkart remained unan- of Mondelez India, has
swered till press time. labelled its product as cereal-
Players in this category based beverage mix.
may take a hit following the According to industry esti-
diktat linked to health drinks.
A source said: “The industry
mates, Horlicks is the leader
in the segment with around
sees double-digit sales only
from e-commerce platforms.
44 per cent market share.
Bournvita has a double-digit
We have to wait and watch to market share with Boost and
see the impact that it will have Complan owning around 5 per
on all players, but everyone cent each. Both Horlicks and
will be impacted for sure.” Boost are HUL brands, while
The source added that the Zydus Wellness owns
industry has no choice but to Complan.
Nestlé adds sugar and hon-
ey to infant milk and cereal
products sold in Asia, Africa
and Latin America, accord-
ing to a news report by The
Guardian. The report said
that a Swiss investigative
organisation, Public Eye,
sent samples of food prod-
ucts to a laboratory in
Belgium for testing, and the
results showed that the
global foods major adds sug-
ar in the form of sucrose or
honey in samples of Nido, a
milk formula brand for
infants above the age of 1
and Cerelac, a cereal which
is aimed at children aged
between six months and two
years. BS REPORTER
The health food drinks cat-
egory, which is nearly a $1 bil-
lion industry in the country,
has already been witnessing a
slowdown for a few years.
“Consumers will start to
divert from this category and
this will have a negative
impact on sales for the indus-
try,’’said Sachin Bobade, vice-
president at brokerage firm
Dolat Capital.
Email queries sent to HUL
and Mondelez India remained
unanswered till the time of
going to press.
Vedanta Chairman Anil
Agarwal also said that FY25
will be a transformative year
PRESS TRUST OF INDIA
New Delhi, 17 April
Mining tycoon Anil Agarwal
has said the current financial
year that started on April 1
will be a transformative year
for his conglomerate Vedanta
as it prioritises disciplined
growth while parent eyes a $3
billion deleveraging in the
next three years.
In a communication to
shareholders, Vedanta
Chairman Agarwal said the
group will pursue sustainable
growth while maintaining a
healthy balance sheet.“These
include further deleveraging
(parent) Vedanta Resources
by $3 billion in next 3 years
and achieving an annual
group Ebitda of $7.5 billion
within 2 years,” he said.
“FY25 will be a transfor-
mative year for us on many
fronts as we prioritise disci-
plined growth, operational
excellence, and exploring
opportunities,” he said.

At a time when foreign invest-

Nirmalasamy on Wednesday, Chennai High Court lawyer K ments in Indian startups have
Narasimhan has stated that despite the state government slowed significantly, global
declaring leave of April 19 for the election day, Flipkart and
BigBasket are promising guaranteed delivery of orders even on
venture capital (VC) firm
Lightspeed Venture Partners
the day of voting. PTI is bullish on sectors like con-
sumer tech, fintech, enterprise
tech, artificial intelligence (AI),
EET appoints Rob Wallace climate tech and electric
mobility, a senior executive at
Rahul Taneja (pictured),
partner, Lightspeed India. The
firm has invested in
Oyo, Sharechat, Udaan, Pocket
lion in the previous year.
Despite this, Lightspeed’s
investments have remained
relatively consistent.
At the same time, invest-
ments by other large global
VCs like Accel, Peak XV
Partners, SoftBank, and Tiger
India debut
FM, and Byju’s, According to data from Global, fell by as much as 85 May be launched in 6-12 months
among others. market intelligence platform per cent, Business Standard
According to data from
market intelligence platform
Tracxn, overall foreign invest-
ments in the country declined
had reported earlier.
“If there is a market to
SPEEDING UP
Tracxn, overall a substantial 66 per cent year- invest in the world right now, DICV's retail sales in India 21,231
foreign invest- on-year (YoY) to $7.7 billion it is India. There is some rebal- over the years
ments in the in 2023, down from $23 bil- ancing of capital allocation 17,149
country
declined 66 per
lion the previous year.
Regardless, Lightspeed’s
across the world. A number of
limited partners (LPs) are
16,172

CEO of EET Hydrogen Power the firm said.

“Between 2022 and 2023,
cent year-on-
year (Y-o-Y) to
investments have remained
relatively consistent.
reassessing their exposure to
China and increasing weight
13,093

EET Fuels announced the appointment of Rob Wallace (pictured) as venture capital funding in $7.7 billion in Lightspeed made as many to India,” Taneja said. 7,858
chief executive officer (CEO) of EET Hydrogen Power, EET's planned India dropped by over 65 per 2023. It is down as 13 equity investments worth He added that Lightspeed’s
hydrogen-ready combined heat and power cent. We, however, continue to from $23 bil- $698.4 million in 2023, up consistent pace of investments
plant at its Stanlow refinery in the UK. Essar remain balanced in our pace from nine totalling is a product of taking a long-
Energy Transition (EET) is the unit of Essar Group of investing in India. The $251.1 million in term view with its bets.
that is driving $3.6 billion worth of low-carbon number of investments the previous year. “We believe in investing,
projects in the UK and India over the next five remained roughly the same in It has made two not deploying. Investing is FY20 FY21 FY22 FY23 FY24
years. ” Rob has spent 25 years in the energy and the two years. We made equity invest- about backing the right Source: FADA
utilities industry, with significant experience between 20 and 25 invest- ments worth founders in the right markets,
with companies, including Shell and ments over the last year, $55.3 million, as in order to deliver DEEPAK PATEL fuel cell concept coach in
Centrica," the company said in remained consistent and will of the first quar- superior returns for our LPs,” New Delhi, 17 April alliance with a large Indian
a statement. PTI maintain the pace,” said ter of 2024. Taneja added. conglomerate.
Daimler India Commercial “In the future, DICV will
Vehicles (DICV) on introduce trucks across differ-
Wednesday said that it will ent utility segments. They will

Retail realty in growth mode as consumption, incomes rise
ANEEKA CHATTERJEE
Bengaluru, 17 April
Commercial real estate players are
looking to expand their footprint
in the retail segment, driven by
India’s increasing consumption
and income levels.
The domestic consumption
market in India is likely to rise
considerably in the coming
decade, supported by rising
income levels and an increase in
spending capacity, especially
among the burgeoning young
aspirational population,
according to a joint study by the
Confederation of Indian Industry
and Knight Frank.
India’s real estate sector is set
to reach $1.5 trillion by 2034,
accounting for 10.5 per cent of the
economy, according to the report.
As of 2023, organised retail
consumption is estimated to be at
4.6 per cent of the total private
consumption of individuals.
However, by 2034, the share of
retail consumption is estimated to
grow to 21 per cent of the total
private consumption.
This quantum of consumption
boost will support the entry and
expansion of retailers in India and
give a fresh impetus to retail real
estate — both for shopping malls
and for high street.
For instance, DLF Retail is
erecting a 2.7 million square feet
(msf) mall in Gurugram. The
company also plans to start a mall
spanning 700,000 square feet
STRONG SHOW ON CARDS
Share of
organised retail
in total private 1.3
2016
consumption of
households
(in % ) *Estimates
Source: Knight Frank Research, CII
(gross leasable area), along with a
high street shopping plaza in Goa.
These developments aim to
elevate the local urban and
commercial environments,
enriching the region’s offerings.
“These endeavours reflect our
confidence in the resilience and
potential of the ever-growing
retail sector in India, driven by the
surge in footfall and sales across
shopping malls. With upcoming
operational milestones in Goa,
Gurugram, and Delhi within the
next 18 months, we are poised to
4.6 20.9
2023E* 2034E*
deliver exceptional retail
experiences and cater to the
evolving needs of our ever-
evolving consumers,” said Pushpa
Bector, senior executive director,
DLF Retail.
Bhumika Group, a retail real
estate developer, plans to
strengthen its presence with a
~250 crore investment in
Faridabad’s Mathura Road micro
market for high-street ventures.
The group’s flagship project,
Urban Square Mall in Rajasthan, is
set to expand with the
introduction of an INOX-PVR
multiplex, enhancing its offerings
to patrons.
“The group’s expansion
doesn’t stop there. Recent
projects, such as the Metro Mall,
have swiftly leased over 50 per
cent of their space to prestigious
retailers like Tata’s Zudio and
Shoppers Stop, showcasing
Bhumika Group’s mastery in
selecting strategic locations and
curating the perfect brand mix,”
said Uddhav Poddar, managing
director, Bhumika Group.
“As Bhumika Group pushes
into Tier-I cities, its prospects for
2024-25 are exceptionally bright.
The group is not merely
expanding its footprint; it is
revolutionising the retail
landscape with cutting-edge
solutions that promise to redefine
industry standards, offering
substantial gains for stakeholders
and fuelling regional economic
dynamism,” Poddar added.
In 2022, Inorbit Malls (India)
secured a prime land parcel in
Visakhapatnam, strategically
positioned for development.
Currently, construction is in
progress for a 1.3 msf retail
complex, slated for completion by
early 2026. Additionally,
expansion efforts are underway at
the Vadodara mall, set to augment
its space by 250,000 square feet.
Additionally, as part of its
expansion strategy, Inorbit is
actively exploring opportunities
in 18 cities, aiming to cultivate a
pipeline of 4 msf across four/five
projects within the next four/five
years.
“We believe that in our
country, there’s a lack of high-
quality social spaces. We have
charted our growth trajectory in a
way that we can meet this latent
demand while keeping consumer
experience at the forefront. While
2023-24 (FY24) witnessed muted
growth, we are bullish about this
financial year and are expecting to
grow 7-8 per cent over FY24,” said
Rajneesh Mahajan, chief
executive officer, Inorbit Malls
(India).
IndiaLand has invested about
~200 crore in retail space,
especially in the Grand Highstreet
Mall of Hinjawadi, Pune. In the
future, it plans to invest around
~140 crore in its upcoming project,
the Cade Reality, located in Pune.
The property will be a mix of
residential, commercial, and
retail projects.
“We intend to follow an
aggressive expansion plan for the
next four/five years… The growth
prospect for the commercial real
estate market is bright, especially
as developers and businesses
explore properties beyond Tier-I
cities. By 2024-25, retail and
commercial properties will
witness a sharp rise in demand
backed by economic growth,
infrastructural development, and
increased interest from foreign
investors,” said Harish Fabiani,
chairman of IndiaLand.
launch its first electric truck
in India called ‘eCanter’ with-
in the next six-12 months.
With eCanter, the German
company will be entering the
light-duty truck segment in
India.
“The market launch of the
all-electric eCanter in India
demonstrates the company’s
first step towards its larger
vision to decarbonise its
entire product portfolio in the
long term,” DICV said in a
statement.
Daimler sold 21,231 com-
mercial vehicles (CVs) in
India during the financial
year 2023-24 (FY24), record-
ing a 23.8 per cent year-on-
year (Y-o-Y) growth, accord-
ing to Federation of
Automobile Dealers
Associations (FADA).
This was much higher
than the growth observed by
the overall CV industry in the
country. Sales of CVs in India
jumped 4.82 per cent to one
million units.
The German company is
striving for its new trucks and
buses to be carbon-neutral in
Europe, Japan and the US by
2039, and globally by 2050.
Satyakam Arya, managing
director (MD) and chief exec-
utive officer (CEO), DICV, said
that diesel, internal combus-
tion engine (ICE) and carbon-
neutral propulsion technolo-
gies will continue to coexist
in the Indian market in the
near future.
DICV has already devel-
oped a BharatBenz hydrogen
serve long haul, mining, con-
struction, petroleum, oil and
lubricant (POL), dumper,
ready-mixed concrete (RMC)
and other segments, for vari-
ous freight and terrain
requirements,” it added.
India's CV market is dom-
inated by three companies —
Tata Motors, Mahindra &
Mahindra (M&M) and Ashok
Leyland. The trio held 76.3 per
cent share in this market dur-
ing FY24.
Each major player in the
CV market is taking its own
set of steps to reduce carbon
emissions.
Tata Motors has a partner-
ship with Cummins to pro-
duce hydrogen-powered ICEs
for its commercial vehicles.
However, it has not yet
revealed its timeline to launch
hydrogen-powered trucks. In
February, Hinduja Group flag-
ship company Ashok Leyland
commenced delivery of its
intermediate and heavy duty
electric trucks to customers.
Mahindra & Mahindra is also
reportedly planning to launch
its first electric truck next
year. DICV said India is also a
world-renowned base for
research and development
(R&D). And, it will continue
to grow as a hub for product
development in the future, as
new technologies get intro-
duced.
“However, India needs
conducive, robust policies
and a market environment to
compete with the world,
going forward,” it added.

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.
CHENNAI | THURSDAY, 18 APRIL 2024 COMPANIES 3 <

Adani family invests another IT spend may hit $139 bn this yr

Gartner report says software spending is projected to record the highest growth
~8,339 cr in Ambuja Cements ASHUTOSH MISHRA
New Delhi, 17 April

Spending in the Indian infor-

expected to see a notable
jump in growth from 4 per
cent in 2023 to 10 per cent in
the current year globally,
Completes fund infusion of ~20,000 crore; promoter stake now at 70.3% mation technology (IT) sec- according to the projections.
tor is projected to reach “We are seeing a cycle of
AMRITHA PILLAY $138.9 billion in 2024, com- story, plan, and execution
Mumbai, 17 April CEMENTING POSITION pared to $122.6 billion last when it comes to GenAI. In
Shareholding of Ambuja Cements year, with a double-digit 2023, enterprises were telling

T
he Adani family on Wednesday growth rate of 13.2 per cent, the story of GenAI, and in
as on March 31, 2024
converted the final tranche of war- according to recent projec- 2024 we are seeing most of
rants issued for Ambuja Cements, 5.6 3.5 tions from Gartner. them planning for eventual
investing another ~8,339 crore in the n Promoters The growth is expected in execution in 2025,” said John
cement company. With this, Adani’s pro- n Foreign all major segments, includ- David Lovelock, vice pres-
moter stake in Ambuja Cements has institutional 6.1 ing software, devices, IT serv- ident and analyst at Gartner.
increased to 70.3 per cent, the company investors 7.1 ices, and data centre systems. In 2024, AI servers will
said in a statement. Across segments, software account for close to 60 per
n Insurance % stake
“The promoters of the company,
Adani family, has fully subscribed to the
companies 11.1
66.7
spending in India is pro-
jected to record the highest
ON THE RISE cent of hyperscalers’ total
server spending, according to
warrants program in the company by n Mutual funds growth rate of 18.6 per cent Indian IT spending n2023 n2024 ($ bn) Figures in brackets the study.
further infusing ~8,339 crore, thereby in 2024, followed by devices, 122.64 138.93 are growth in % “There is also gold rush-
n Retail & HNI Overall
infusing a total amount of ~20,000 crore,” which is expected to grow at (1.4) (13.2) level spending by service
Ambuja Cements said in its statement. n Others 13.8 per cent. providers in markets sup-

35.38
33.44
Source: Capitaline

26.07
In September 2022, the Adani group “Indian chief information porting large-scale GenAI

22.91
55.84

17.48
47.75
had acquired Holcim’s Ambuja Cements officers (CIOs) are continuing projects, such as servers and

14.73
and interests in ACC Ltd. had already infused roughly ~5000 crore, ~416.87 per share for an allotment of 26.54 to prioritise growth, cus- semiconductors,” said

3.79

4.14
Post the acquisition, in October 2022, that is 25 per cent of the total issue size crore equity shares of the company, add- tomer experience, and oper- Lovelock.
Ambuja Cements announced allotment upfront in 2022. ing another 3.6 per cent stake under pro- ational efficiency while lev- Gartner also projects
of 47.74 crore warrants to Harmonia A second tranche of investment was moter ownership. eraging software assets in (5.4) (9.2) (-2.1) (16.9) (12.1) (18.6) (4.9) (13.8) (-0.25) (5.7) growth in the devices seg-
Trade and Investment Limited (part of made in March, where Adani family par- In Tuesday’s trade, Ambuja Cements this challenging environ- ment spend, with the sector
Adani Family) at an issue price of ~418.87 tially converted these warrants to equity share price closed at ~617 per piece, up ment. Recurring revenue Data centre Devices Software IT services Communications expected to achieve $688 bil-
per warrant, and each warrant was con- and infused another ~6661 crore in 1.68 per cent from its previous day’s close. models are playing a signifi- systems services lion in spending during 2024,
Note: 2024 figures are projections Source: Gartner report
vertible into one equity share, to be exer- Ambuja Cements and increased stake to Proxy advisory firm IiAS, had earlier cant role in optimising IT up from 2023 spending lows
cised at any time, within a period of 18 66.7 per cent. guided investors to vote against the issu- costs and driving software of $664 billion, at a growth
months from the date of allotment of According to Ambuja Cements’ state- ance of such warrants stating it allows spending,” said the report. imal, as Indian CIOs are cur- is expected to total $5.06 tril- rate of 3.6 per cent.
warrants. ment to BSE, the latest warrant conver- promoters the option to ride the stock On generative artificial rently in the planning and lion in 2024, an increase of 8 “The integration of GenAI
As per requirements, Adani Family sion was approved at a premium of price for 18 months. intelligence (GenAI) spending evaluation stage regarding the per cent from 2023. capabilities in premium and
in India, the report said that technology. Fuelled by the demand for basic phones sustains, more
in the short term, the revenue According to the projec- GenAI processing, spending than drives, this change,”
generated from it will be min- tions, worldwide IT spending on data centre systems is also said the report.

Zee board okays organisation rejig

Punit Goenka assumes direct charge of critical verticals, domestic broadcast
PRESS TRUST OF INDIA
New Delhi, 17 April
ZEE Entertainment Enterprises
Ltd (ZEEL) on Wednesday
announced a streamlined orga-
nisational structure with its
Managing Director and Chief
Executive Officer Punit Goenka
assuming direct charge of crit-
ical verticals, including domes-
tic broadcast business.
Under the new organisa-
tional structure approved by
its board, ZEE will have four
key business segments —
broadcast, digital, movies and
music. Punit Goenka’s brother the domestic broadcast busi-
Amit Goenka, who currently ness, Siju Prabhakaran, who
heads the digital business has led the South cluster
has been given additional of channels, will take
charge of the interna- additional responsibil-
tional broadcast, enter- ity of the West cluster.
prise technology, broad- Similarly, Samrat
cast operations and Ghosh, head of East
engineering. He will also cluster of channels,
take direct charge of will take additional
original content, responsibility of
including North and Pre-
movies, the mium clusters.
company Ruchir
said in a Tiwari will con-
state- tinue to lead the
ment. In Hindi Movies
cluster while Vishnu Shankar
will continue to lead ‘&TV’ and
the free to air segment, the
company said, adding they
would directly report into the
MD and CEO.
Further, the company said
Ashish Sehgal will be respon-
sible for 'Integrated
Advertisement Sales' for the
broadcast and digital busi-
nesses. For the digital business
revenue, Sehgal will also report
into Amit Goenka and for the
broadcast business revenue he
will continue to report into the
MD and CEO.
Tesla may unveil up to $3 bn
investment during India visit
Tesla chief Elon Musk is set
to announce an investment
in India of $2-$3 billion,
mainly for building a new
factory, when he visits New
Delhi next week to meet
Prime Minister Narendra
Modi, two sources familiar
with the discussions said.
Musk will meet Modi on
Monday during his India
trip, when the billionaire is
expected to unveil his plans
to enter the world’s third-
largest auto market where
electric car adoption is still
in its infancy.
India’s EV market is
small but growing and
dominated by local car-
maker Tata Motors. The
two sources said Musk will
likely give an investment
figure for India without
sharing details such as a
timeline or an Indian state
where the plant will be
built. Tesla did not imme-
diately respond to a request
for comment. REUTERS

JTEKT INDIA LIMITED

(CIN – L29113DL1984PLC018415)
Regd. Office: UGF-6, Indraprakash, 21, Barakhamba Road, New Delhi 110001.
Tel. No. : 011-23311924, 23327205
E-mail: investorgrievance@jtekt.co.in; Website: www.jtekt.co.in
Notice for issue of Duplicate Share Certificates D’Décor signs superstar Ranveer Singh as
Members of the public are hereby informed that original share certificates, details of which
are given hereunder have been reported lost / misplaced and pursuant to the provisions of
Investor Education & Protection Fund Authority (Accounting, Audit, Transfer and Refund)
the brand ambassador for ‘Sansaar’
Rules 2016 were transferred to IEPF and now the shareholder has furnished the D’Décor launches ‘Sansaar’ – a conscious living and mindfully crafted home décor fabrics brand
documents claiming his shares from the Company :
Sl. Share No. of Distinctive Nos. Folio Name of the D’Décor, one of the world’s largest
No. Certificate Shares From To No. Shareholder manufacturers of soft furnishing fabrics
Nos.
has signed superstar Ranveer Singh to
1. 20392-93 200* 2038408 2038607 014644 Pabitra Das bring the new brand ‘Sansaar’ to the fore-
18646 1000$ 57296822 57297821 Indira Das front. The new brand is set to transform
* (Face Value of Rs. 10/- each) $ (Face Value of Rs. 2/- each) the landscape of home décor marking a
Any person having any objection to the issue of Duplicate Share Certificates may submit significant step towards conscious living,
the same in writing with the Company at its Registered Office within 15 days from the date minimalism, and sustainability. Rooted in
of publication of this Notice. Members of the public are cautioned against dealing in the elegance, Sansaar’, each product in the
above mentioned share certificates.
collection reflects a conscious commit-
For JTEKT India Limited ment to both style and sustainability,
Place : Gurugram Saurabh Agrawal embodying a lifestyle of mindful living.
Date : 17.04.2024 Company Secretary Sanjana Arora, Business Head of
Sansaar by D’Décor, highlighted the
brand's innovative approach, saying, “We
are honoured to embark on this journey
of ‘Sansaar’ with superstar Ranveer
Singh joining the D’Decor family. D’Décor
has been a category leader and contin-
ues to dress beautiful homes across the
world. Fabrics under ‘Sansaar’ have been
meticulously curated to embody the per-
fect balance of premium quality, mini-
malist design, and craftsmanship.
Through ‘Sansaar’ and our association
with Ranveer Singh, we are presenting a
lifestyle choice to the modern consumer;
one chosen to express care, considera-
tion, and connection.”
Elaborating on this special association,
Superstar, Ranveer Singh, the face of
Sansaar, a D’Décor brand shared, “I'm
thrilled to be part of the D’Décor family.
Sansaar offers an exquisite collection,
providing top-quality home furnishings
that truly elevate any space. D’Décor
continues to raise the bar and I look for-
ward to our journey together!
“Launching Sansaar fills us with immense
pride as we introduce a brand that not
only epitomize elegance and creativity
but also marks a strategic move in our
business trajectory. Having Ranveer
Singh as our brand ambassador further
solidifies our communication on simple
yet elegant living. We aim to cater to the
evolving needs of consumers while rein-
forcing our commitment to innovation and
conscious living. This launch not only
expands our product portfolio but also
strengthens our position in the home
décor industry, setting new standards for
excellence and mindful consumption.”,
says Sanjay Arora, Managing Director at
D’Décor.
“With Superstar Ranveer Singh as the
face of Sansaar, we aim to create spaces
that inspire, uplift, and reflect the essence
of elegant living. Together with our
esteemed team and an individual like him
on-board, we are committed to shaping a
future where every fabric tells a story of
craftsmanship, mindful living and time-
— BS Marketing Initiative
L-R — Sarah Arora, brand ambassador Ranveer Singh
and Sanjana Arora for ‘Sansaar’ by D’Decor
less beauty”, Sarah Arora, Creative
Director of Sansaar.
Sansaar believes that a home is a
culmination of meaningful choices where
colors evoke memories, and each
selection personifies love and comfort.
Discover how every fabric, texture, and
hue can transform your space into a
sanctuary filled with warmth and
cherished moments. The product portfo-
lio of Sansaar will include: Curtains,
Upholstery.
For up-to-date information on Sansaar,
follow on social media:
Social Media Handles: Hashtags-
#sansaar #sansaarddecorbrand
#sustainable #sustainableliving
#sustainablestyle
#sustainablelifestyle
#consciousliving
#mindfuldesign
#sustainablehomes
#mindfuliving #luxuryfabrics
#sustainablefabrics #homefabrics
#sansaardiaries #liveconsciously
About Sansaar: Sansaar, a brand by
D’Décor, is a leading name in the realm
of home décor, offering a diverse range of
soft furnishing fabrics that redefine ele-
gance, sustainability, and mindful living.
With a meticulous focus on quality crafts-
manship and minimalist design, Sansaar
is committed to curating products that
reflect the modern consumer’s conscious
lifestyle choices. Sansaar offers a com-
prehensive range of soft furnishing
fabrics, including curtains, upholstery,
bedsheets, rugs, blinds, and wallpapers,
meticulously crafted to elevate every
aspect of home interiors.
About D’Décor Exports Pvt Ltd:
D'Decor Exports Pvt. Ltd., the world's
largest producers of Woven Upholstery,
Curtain Fabrics, and Embroidered
Fabrics & Made ups was established in
1999. D'Decor, Exports is exporting to
65 countries worldwide. The products are
designed by top notch European design-
ers. The company's customers include
some of the largest and leading global
brands.
D'Decor Exports are having Three State
of the Art Manufacturing and the factories
are situated in• Tarapur, Boisar, Dist.
Palghar near Mumbai. The Production
exceeds a 100,000 Mtrs./Day, thus bring-
ing innovation to more than 1500 homes
a day. D'Decor's supply chain can deliv-
er more than 200,000 SKUs. These are
chosen from a large spectrum of products
comprising of furnishing fabric (curtains
and upholstery), embroidered fabric,
yarn, ready-mades, velvets, wallpapers,
bedding (digital prints and embroidered
beddings), blinds and rugs.
As a company, D'Decor Exports has
accomplished many firsts in the Indian
furnishing fabric business. We were the
first to introduce water-repellent fabric,
flame-retardant fabrics and also to have
the first Robotic Warehouse in India.
D'Decor Exports is a proud employer with
a family of more than 3500 committed
employees. After proving our excellence
in the international market, we are also
focusing on the Domestic Market.
D'Decor Exports has also launched
D'Decor Blinds and has already setup a
blinds manufacturing unit in Tarapur.
D'Decor Exports has put up more than
150 galleries of D'Decor Exports Blinds
pan India within a year of its launch. Also,
D'Decor Exports has now ventured into
retail space with its flagship store The
D'Decor Exports Store in Bandra,
Mumbai which was launched in 2014 and
many other cities. D'Decor is synony-
mous with style and innovation. Known
for superior international quality, a wide
variety of design and colors, D'Decor
helps people create the most beautiful
places in the world - their homes.
sansaar.ddecorbrand
4 ECONOMY & PUBLIC AFFAIRS
>
NEW DELHI | THURSDAY, 18 APRIL 2024 1

IN BRIEF
Liberalised space FDI norms
LIKELY FIRST 100-DAY AGENDA In FY25, NHAI
notified ahead of Musk visit
The government has notified amendments to the foreign direct
New govt may kick off to monetise
pesticide, seed reforms 2,741 km roads
investment policy in the space sector to attract offshore investors
in satellite manufacturing and satellite launch vehicles
segments. The notification comes days ahead of the scheduled
visit of Tesla CEO Elon Musk (pictured) who is expected to meet
with various Indian space companies during his
Length of NH*
visit from April 21 to 22. Amendment made in
the FDI policy for space sector through a
SANJEEB MUKHERJEE
New Delhi, 17 April
(R&D) to develop new mole-
cules and get them registered RETURN POTENTIAL (in km)
gazette notification dated April 16, 2024 for manufacture and sale. n Revenue in FY24 (in ~ cr)

W
prescribes liberalised entry route and provides ith farm Acts out of
clarity for FDI in satellites, launch vehicles and the picture, the
associated systems or subsystems, creation of government may
spaceports for launching and receiving look at reforming the input
Spacecraft and manufacturing of side of the agriculture sector
space-related components — regulations and rules that
and systems. PTI govern seeds, fertilisers and
plant chemicals.
Sources said such a blue-
Indian economy projected to print, which is aimed at
making the life of farmers
grow 6.5% in 2024: Unctad easier, with quicker
approvals but not compro-
India's economy is projected to grow by 6.5 per cent in 2024, mising on quality, is in the
according to a report by the UN which noted that multinationals works as part of the 100-day
extending their manufacturing processes into the country to agenda of Modi 3.0. Also,
diversify their supply chains will have a positive impact on ways to administer fertiliser
Indian exports. UN Trade and Development (Unctad) in its report subsidy more effectively and
released on Tuesday said that India grew by 6.7 per cent in 2023 cutting down on leakages
and is expected to expand by 6.5 per cent in 2024, continuing to
be the fastest-growing major economy in the world. PTI
and diversions to build on
the success of neem-coated
urea are being thought of.
Few years back, a propos-
Shipping firms asked to enhance al was mooted in some quar-
ters to conduct a pilot in a few
tracking on West Asian routes districts of the country on a
modified version of the direct
The government has issued advisories to ship
companies to enhance reporting, tracking and
benefit transfer (DBT) that
would establish some sort of
security protocols for vessels on West Asian linkage between land hold-
routes and coming into Indian waters. In a ing and the nutrient’s con-
circular dated April 10, 2024, the Directorate sumption.
General of Shipping (Mumbai) advised ship Currently, the version of
managers, ship masters and seafarers to DBT in place involves farm-
enhance the mechanism for reporting and tracking ers purchasing their fertilis-
maritime activities to safeguard the interest of merchant ships ers through point of sale
and their crews. The ministry has identified sensitive zones that (POS) devices after undergo-
include the Persian Gulf, Strait of Hormuz, Gulf Of Oman, Arabian ing Aadhaar authentication.
Sea, Gulf of Aden, Bab Al Mandeb Strait, Red Sea, Somali Basin, This ensures that the identity
and Arabian Sea region. PTI of the person, who purchases
fertiliser bags, is well estab-
lished.
Banga, Nadella on Time 100 However, there is no
restriction on the number of
most influential people list bags that each farmer can
purchase. This sometimes
World Bank President Ajay Banga (pictured), leads to excess usage and
Bollywood actor Alia Bhatt, Microsoft CEO Satya chances of misuse.
Nadella, Olympian wrestler Sakshi Malik, and In case of seeds and plant
actor-director Dev Patel are among the chemicals, sources said lots
Indians who have made it to the prestigious of reforms are urgently need-
Times' list of 100 most influential people in the ed as the regulatory and app-
world released on Wednesday. Time's ‘100 Most
Influential People of 2024' also includes US
Department of Energy's Loan Progra-
mmes Office director Jigar Shah. PTI
Crude oil import bill shrank 15.9% in
NPCI allows Paytm
FY24, thanks to Russia shipments
to migrate users to new
SUBHAYAN CHAKRABORTY
PSP bank handles
AGROCHEMICAL INC SNAPSHOT
> The Indian agrochemicals
industry has a production
capacity of 0.32 million tonnes
> India was the 4th largest exporter of agrochemicals in 2020
> In 2020, it $3.4 billion
exported (9.4 per cent
pesticides of global
worth exports)
> In FY20, China alone contributed to around 49 per cent of
India’s total pesticide imports (valued at ~9,096 crore)
> Agrochemical industry is expected to grow at a compound
annual growth rate of 8–10 per cent until 2025
roval process in India takes a
long time. This is because it
involves multiple layers.
They said the government
could look at creating a
favourable policy environ-
ment for the agrochemicals
sector. This would facilitate
an increase in agrochemical
exports and position India as
an attractive destination for
foreign investments. It would
also safeguard the interests
> In terms of trade, India is a
major exporter and importer
of agrochemicals
> The Indian agrochemical
industry is highly reliant on
import of raw materials and
technical intermediates
Source: Trade and industry bodies
of small and regional players
operating in the industry.
The current process for
registration of a new agro-
chemical molecule in India is
often perceived as time-con-
suming, costly, and a com-
plex procedure by the indus-
try. Only a few large
multinational companies
and leading domestic players
can afford to invest in
research and development
As a result, only around
280 molecules and 800 for-
mulations (including combi-
nations) are registered in
India. Compared to India,
this number is double in the
European Union (EU) and
triple in Japan.
The industry wants
reforms in the Central
Insecticides Laboratory
(CIL) as well to cut down on
pending lists and time taken
for clearance of new appli-
cations.
One of the major chal-
lenges faced by Indian agri-
cultural exporters is the
stringent rules related to
pesticide residues in regions
like the EU.
“Registering molecules
deemed safe by major
importers to abide by maxi-
mum residue limit (MRL)
norms is a policy change that
may boost agricultural
exports in the longer term.
MRL testing infrastructure
may also be improved to pro-
vide increased access to test-
ing at lower costs,” a senior
industry player said.
Also, the problem of spu-
rious seeds and the need for
proper regulations to check
their proliferation could form
part of the possible reforms.
“CIL facilities, infrastruc-
ture and manpower need to
be upgraded. Industry has
offered to support the gov-
ernment to review and devel-
op infrastructure and capa-
bility building. The industry
has also offered to collaborate
for sharing best practices for
capacity building in CIL,”
Kalyan Goswami, director
general, Agro Chem Fed-
eration of India (ACFI), told
Business Standard.
According to estimates by
Rajasthan
UP
Odisha 442
Tamil Nadu 406
Bihar 375
DHRUVAKSH SAHA
New Delhi, 17 April
The National Highways
Authority of India (NHAI) is
looking to monetise 33 stretches
of national highways during the
current financial year (FY25)
through its toll operate transfer
(TOT) and infrastructure invest-
ment trust (Invit). These stretch-
es include Lucknow-Aligarh,
Kanpur-Ayodhya-Gorakhpur,
and Bareilly-Sitapur in Uttar
Pradesh, Gurugram-Kotputli-
Jaipur bypass and Jaipur-
Kishangarh in Rajasthan,
Panikoili-Rimuli in Odisha,
Chennai Bypass in Tamil Nadu,
and Muzaffarpur-Darbhanga-
Purnia highway in Bihar.
Cumulatively, the 33 stretch-
es, spanning 2,741 kilometres
(km) earned approximately
~5,000 crore revenue in FY24.
NHAI will have discretion to
review and change the list and
modes of monetisation based on
its own plans, going forward.
It is not immediately clear
which of these assets will be part
of NHAI’s TOT bundles and
which will be sold to the highway
authority’s Invit. The authority
has so far issued 14 bundles of
national highways in the TOT
mode. This instrument gives
highway players the right to col-
Electronics rises
up the ranks,
now India’s 5th
1,410 413
1,017 597
283
136
*National highway
324
Source: NHAI
lect toll for a specific period by
paying the authority upfront
cash. The valuation is arrived at
through competitive bidding.
After having struggled with
getting bids considered fair by
the authority, NHAI has awarded
10 TOT bundles to raise ~42,000
crore since the beginning of the
asset monetisation pipeline.
In Invit, the trust which has
numerous tax benefits for
investors, buys the road from the
authority and operates it. It dis-
tributes toll earnings in the form
of return on units. NHAI has exe-
cuted three rounds of offers
through its Invit, raising close to
~26,000 crore.
NHAI has been among the
government’s few infrastructure
departments, which has achie-
ved its monetisation targets in a
timely manner. It is in accor-
dance with the phasing provided
by NITI Aayog when the national
monetisation pipeline (NMP)
was launched in 2021.
While monetisation figures
have been subject to change
based on annual reviews, experts
speculate that the target for the
ministry of road transport and
highways will broadly be in line
with the original plan. According
to it, ~53,000 crore worth of
national highways may be put
up for private participation.

AJINKYA KAWALE the @Paytm UPI handle can

New Delhi, 17 April

Discounts on a steady stream of

Mumbai, 17 April
The National Payments
Corporation of India (NPCI)
has allowed One97
Communications (OCL), the
company that operates Paytm,
to start migration of users to a
new payment service provider
(PSP) the bank handles. This
comes over a month after the
NPCI allowed Paytm to func-
tion as a third-party applica-
tion provider (TPAP) on the
Unified Payments Interface
(UPI). Four banks — State
Bank of India (SBI), Axis Bank,
HDFC Bank, and YES Bank —
will act as PSPs to Paytm.
“All four banks are now
operational on the TPAP,
streamlining the process for
Paytm to shift user accounts
to these PSP banks,” OCL said
in a release. UPI users with
now create new virtual pay-
ment addresses or VPAs with
partner PSP banks. OCL
added it had started to tran-
sition ‘@paytm’ handles users
to the four PSP banks. Paytm
operates as a TPAP under a
multi-bank model. Last
month, the NPCI had advised
Paytm to complete the migra-
tion of all existing handles
and mandates to new PSP
banks “at the earliest”.
In February this year, the
Reserve Bank of India (RBI)
had advised NPCI to consider
the request of OCL to become
a TPAP for continued UPI
operation of the app.A PSP
bank, either through its own
application or a TPAP, onbo-
ards and registers customers
on UPI. It links customers’
bank accounts to their respec-
tive UPI identifications.
Russian crude have led to India’s
crude oil import bill shrinking by
15.9 per cent to $132.4 billion in
FY24 (2023-24), down from $157.5
billion in the previous year, even
as import volumes remained the
same. The crude oil import bill
had risen by 30.4 per cent in
FY23, data shows.
However, the country import-
ed almost the same amount of
crude oil by volume in FY24,
bringing in 232.5 million
metric tonnes (mmt) of crude in
FY24, official data released on
Wednesday by the Petroleum
Planning and Analysis
Cell showed. This was marginally
down by 0.1 per cent as compared
to FY23.
This was also the second year
that import volumes have
remained above the pre-pandemic
levels. Imports stood at 226.9 mmt
in 2019-20, falling to 196.4 mmt in
TAKING
STOCK
Crude oil import
bill was down
as volumes
stabilised
Source: PPAC
2020-21. However, India’s import
dependency hit a fresh high of 87.7
per cent in FY24, up from 87.4 per
cent and 85.5 per cent in the pre-
vious two years. When calculated
based on the consumption of
petroleum products, import
dependency on crude oil inched
up to 88 per cent in March.
In March, crude imports
decreased by 4.4 per cent to $20
billion, down from $20.9 billion
in March, 2023 owing to higher
global prices.
London-based commodity data
analytics provider Vortexa, which
uses ship movements to gauge
largest export
imports, Russia remained the sin-
gle-largest supplier of crude oil CHARGED UP % chg
for the 18th consecutive month Top exports in FY24 ($ bn) Y-o-Y
as of March. At 1.36 million bar-
rels of crude oil per day, imports Engineering goods 109.3 2.1
from Russia rose 7 per cent Petroleum products 84.1 -14.0
month-on-month in March, as
compared to February. Gems & jewellery 32.7 -14.0
Analysts had earlier predicted -3.0
Organic* 29.4
lower imports from the country
after the US imposed fresh sanc- Electronic goods 29.1 24.0
tions against Russia’s leading
tanker group, Sovcomflot, on 23 Drugs & pharma 27.8 10.0
February. Announced on the *And inorganic chemicals Source: Government
second anniversary of Russia’s
invasion of Ukraine, the sanc- SURAJEET DAS GUPTA
tions were placed on 14 tankers New Delhi, 17 April
part of the fleet.
However, the average inci- Propelled by burgeoning mobile phone exports
dence of discounts received by from India, especially from Apple, electronics
India has also come down to its exports have moved up one position to become
lowest since the invasion of India’s fifth largest export, at $29.1 billion, dis-
Ukraine in late-2023 in recent placing drugs and pharmaceuticals at $27.8 bil-
months. It hovered around $3-4 lion in the financial year ended March 31, 2024.
per barrel in March, sources said. What’s more, electronics exports have inched
close to the fourth largest exporter — organic
and inorganic chemicals — which contracted 3
per cent in FY24 to $29.4 billion. According to

‘Eliminating risk’: RBI asks offline PAs to verify KYC for merchants
AJINKYA KAWALE
Mumbai, 17 April
The Reserve Bank of India’s (RBI)
draft regulation for payment aggrega-
tors (PAs) will enable the latter to
manage risks on their platform with
well-defined Know Your Customer
(KYC) norms for merchants, said mar-
ket participants.
In the draft guidelines published
on Tuesday, the banking regulator
outlined KYC procedures for small
and medium-sized merchants. It said,
a PA will need to undertake Contact
Point Verification (CPV) and duly veri-
fy the bank account in which the
funds of small merchants are settled.
Physical merchants that are under-
taking only proximity or face-to-face
transactions with business turnover
less than the threshold limit of ~5 lakh
per annum and those not registered
under Goods and Services Tax (GST)
are defined as ‘small merchants’
according to the draft norms. RBI has
added that for ‘medium merchants’,
PAs shall carry out the CPV. PAs shall
also obtain and verify one Officially
Valid Document (OVD) of the propri-
etor, beneficial owner or person hold-
ing attorney. They will be required to
verify one OVD of the business. It has
defined medium merchants as those
with business turnover less than the
threshold limit of ~40 lakh per annum
and those not registered under GST.
“We welcome these guidelines
from the Payments Council of India
(PCI) perspective. It gives a much-
needed clarity in terms of handling all
different kinds of merchants and on
what specific KYC of merchants that
needs to be done,” said Vishwas Patel,
joint managing director, Infibeam
Avenues and chairman, PCI.
Players have added that following
crackdown on companies such as
Paytm Payments Bank for alleged KYC
violations, the regulator may be plac-
NEW DRAFT NORMS
n PAs to conduct KYC due diligence of
small, medium merchants
n Ensure merchant transactions in
line with their business profile
n Have risk-based payment
limits for merchants
n Due diligence aimed at eliminating
risk in the market
ing norms in place to eliminate exist-
ing risk in the market.
“If (KYC) was a problem with
Paytm, others would also be following
suit. There are the usual risks associat-
ed such as money laundering that
may be required to be curbed which is
why the draft norms are in place,” an
executive of a payments fintech said
on condition of anonymity. The player
added that the draft norms will bring
in consolidation within the sector.
“Companies whose PA-PG
(Payment Aggregator, Payment
Gateway) applications have been
returned, the chances of them getting
them are low. It may lead to consoli-
dation when these get out of the mar-
ket,” the person said. Such compa-
nies may look at acquiring other reg-
ulated firms or partnerships with
them to continue their business, the
executive added.
Single escrow account
The recent draft norms aimed at regu-
lating non-bank physical point-of-sale
payment aggregators (PA-P) will
streamline collection and settlement
for merchants. Previously, only the
online point-of-sale payment aggrega-
tors (PA-O) were regulated by the RBI.
Those servicing offline merchants, for
in-store transactions, were not under
the regulator’s purview.
“What was happening is that the
lines between online and offline were
blurring,” Patel of PCI said. He
explained that earlier the challenge
for PAs was that the funds coming for
online merchants would go into one
escrow account, and funds coming for
offline merchants would go into
another escrow account, and so on.
“With the draft guidelines, it
makes things easier, whether it is
online or offline. It unifies everything
and all will follow the same standards
and rules. All single settlements are
now possible through a single escrow
account,” he added.
Essentially, the draft norms now
allow escrow accounts opened by PAs
to be utilised for both PA-O and PA-P
activities. Funds with respect to the
Delivery versus Payment (DvP) trans-
actions, which were previously not
covered under the RBI’s radar, can
now be routed through escrow
accounts.
Minimum net worth requirements
The regulator has proposed net worth
norms for payment aggregators (PAs)
which facilitate face-to-face or prox-
imity payment transactions. Those
entities which are providing services
now need to have a minimum net
worth of ~15 crore while applying to
RBI for authorisation. They should
have a minimum net worth of ~28
crore by March 2028, according to
draft norms.
New non-bank PA-Ps will be
required to have a minimum net
worth of ~15 crore at the time of appli-
cation to the RBI for authorisation.
They will be required to attain a mini-
mum net worth of ~25 crore by the end
of the third financial year of grant of
authorisation and maintained at all
times thereafter.
the Department of Commerce, electronics
exports grew 24 per cent, an increase of over
$23.6 billion in FY23. It is also the fastest growing
export category among the top 10. Mobile phone
exports, which grew nearly 38 per cent over last
year to reach $15.5 billion, contributed 53 per ce-
nt to the total electronics exports, According to
the Indian Cellular and Electronics Association.
By comparison, in the last financial year,
mobile phone exports stood at $11.1 billion, con-
tributing 47 per cent to the total electronics
exports. The single largest factor driving this
increase was Apple’s iPhone exports, which dou-
bled from $5 billion in FY23 to over $10 billion
in FY24. This came at a time when overall mer-
chandise exports from India were down in FY24
over the previous financial year by approximate-
ly 3 per cent. Of the $5.5 billion increase in elec-
tronics exports this year, 90 per cent came from
the increase in iPhone exports to the tune of $5
billion. Apple’s iPhone exports alone now con-
stitute 35 per cent India’s entire electronics
export goods basket.
The smartphone production-linked incen-
tive scheme pushed up electronics exports from
the seventh largest export between FY19 and
FY23 to number six last year, to the fifth spot in
FY24. Electronics has also substantially nar-
rowed its gap with the third and fourth largest
exports from India. In FY23, electronics exports
trailed gems and jewellery exports by $14.4 bil-
lion. This year, the gap has reduced to $2.8 bil-
lion. In the case of the fourth ranked organic
and inorganic chemicals exports, electronics
have narrowed the gap from $6.7 billion in FY23
to merely $300 million within a year.
.
NEW DELHI | THURSDAY, 18 APRIL 2024 5
<

NAME CHANGE
I, "Kabeer Singh Bedi" S/o Sh.
Bhupinder Singh Bedi R/o L-48,
Lajpat Nagar - ll, New Delhi-
110024 declare that I have
changed my name from
“Kabeer Bedi” to “Kabeer
Singh Bedi” and confirm that
both the names belong to one
and same person and Kabeer
Singh Bedi should be used for
all future purposes.

URAVI T AND WEDGE LAMPS LIMITED

CIN: L31500MH2004PLC145760
Address : Shop No. 329, Avior, Nirmal Galaxy, L. B. S. Marg, Mulund (W), Mumbai-400 080 INDIA
Tel. No. : +91 22 2565 1355, Email id :- info@uravilamps.com, Website :- www.uravilamps.com
NOTICE OF POSTAL BALLOT
Members are hereby informed that pursuant to the provisions of Section 108 and 110, and other
applicable provisions of the Companies Act, 2013, as amended (the “Act”), read together with the
Companies (Management and Administration) Rules, 2014, as amended (the “Management Rules”),
General Circular Nos. 14/2020 dated April 8, 2020, 17/2020 dated April 13, 2020, 20/2020 dated May
5, 2020, 22/2020 dated June 15, 2020, 33/2020 dated September 28, 2020, 39/2020 dated December
31, 2020, 10/2021 dated June 23, 2021, 20/2021 dated December 8 , 2021, 3/2022 dated May 5, 2022,
11/2022 dated December 28, 2022, and 09/2023 dated September 25, 2023, issued by the Ministry
of Corporate Affairs, Government of India (the “MCA Circulars”), Secretarial Standard on General
Meetings issued by the Institute of Company Secretaries of India, Regulation 44 of the Securities
and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015,
as amended (the “LODR Regulations”) and any other applicable law, rules and regulations (including
any statutory modification(s) or re-enactment(s) thereof, for the time being in force), the approval of
members of Uravi T and Wedge Lamps Limited (the “Company’) is sought for the following special
resolutions by way of remote e-voting (“e-voting”) process:-
Sr. No. Description of Special Resolution
1. Issuance of Equity Share warrants on Preferential Basis.
Pursuant to the MCA circulars, the Company has completed the dispatch of electronic copies of the
Postal Ballot Notice along with the explanatory statement on Wednesday, April 17, 2024, through
electronic mode to those Members whose email addresses are registered with the Company /
depository participant(s) as on Friday, April 12, 2024 (“Cut-off Date’).
The said Notice is also available on the website of the Company: https://www.uravilamps.com/
index.html, the relevant section of the website of BSE Limited (“BSE”): http://www.bseindia.com and
National Stock Exchange of India Limited (“NSE”): http://www.nseindia.com and on the website of
National Securities Depository Limited (“NSDL”): http://www.evoting.nsdl.com.
In accordance with the provisions of the MCA circulars, Members can vote only through e-voting
process. The voting rights of the Members shall be reckoned on the basis of the equity shares of the
Company held by them as on the Cut-off Date. Any person who is not a shareholder of the Company as
on the Cut-off Date shall treat the Postal Ballot Notice for information purposes only.
The Company has engaged the services of National Securities Depository Limited (“NSDL”) for the
purpose of providing e-voting facility to all its members. The e-voting facility will be available during
the following period:
Commencement of e-voting period 9.00 a. m. IST on Thursday, April 18, 2024
Conclusion of e-voting period 5.00 p. m. IST on Friday, May 17, 2024
Cut-off date for eligibility to vote Friday, April 12, 2024
The remote e-voting shall be disabled by NSDL after the aforesaid date and time for voting and once
the vote on a resolution is cast by member, the member shall not be allowed to change it subsequently.
Members who have not updated their e-mail address are requested to register the same in respect of
shares held by them in electronic form with the Depository through their Depository participant and in
respect of shares held in physical form by writing to Company’s Registrar and Share Transfer Agent,
Bigshare Services Pvt Ltd., Office No S6-2, 6th Floor, Pinnacle Business Park, Next to Ahura Centre,
Mahakali Caves Road, Andheri (East), Mumbai-400 093, Email ID :- prasadm@bigshareonline.com
The Board has appointed Mr. Saurabh Agarwal (Certificate of Practice No. 20907) and failing him
Mr. Omkar Dindorkar (COP No. 24580) partners of M/s. MMJB & Associates, Practicing Company
Secretaries Firm as scrutinizer (“Scrutinizer”) for conducting the e-voting process in a fair and
transparent manner.
The Scrutinizer will submit his report to the Chairman or any other person authorized by the Chairman
after the days from the completion of scrutiny of the e-voting, and the result will be announced within
two working conclusion of e-voting i. e. 5.00 p. m. IST on Tuesday, May 21, 2024, and will also be
displayed on the Company’s website (https://www.uravilamps.com/index.html) and on the website
of NSDL (https://www.evoting.nsdl.com), and communicated to the stock exchanges, depository,
registrar and share transfer agent.
For any queries or grievances pertaining to e-voting, shareholders are requested to contact
Prasad Madiwale, Deputy General Manager, Bigshare Services Pvt. Ltd., Office No. S6-2, 6th Floor,
Pinnacle Business Park, Next to Ahura Centre, Mahakali Caves Road, Andheri (East), Mumbai-
400 093, Email Id :- prasadm@bigshareonline.com, Contact No:- 022-62638200. Shareholders
can also contact, Sanjeev Yadav, Assistant manager National Securities Depository Limited, 4th Floor,
A Wing, Trade World, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai-400 013,
India, contact details : evoting@nsdl.com. Contact No. 022-4886 7000 and 022-2499 7000:
NSDL Contact : Uravi T and Wedge Lamps Limited
Email id : evoting@nsdl.co.in Contact Person : Mr. Niraj Damji Gada, Managing Director
Tel. No. : 1800 1020 990 •Email id : info@uravilamps.com •Tel. No. : +91 22-2565-1355
FOR URAVI T AND WEDGE LAMPS LIMITED
sd/-
Niraj Damji Gada
Date : 18 April, 2024 Managing Director & CEO
Place : Mumbai DIN: 00515932
Rameshwar Media
6 >
BATTLEGROUND 2024 NEW DELHI | THURSDAY, 18 APRIL 2024 1
As many as 58 constituencies have no In the 2024 LS polls, of the 2,831
women candidates. Of the seats with most
BATTLEGROUND 2024
candidates contesting in phases
candidates, Karur (Tamil Nadu) leads the way 1 (102 seats) and 2 (88 seats), 237,
with seven women candidates or 8.3%, are women

N ON THE GROUND: UP N
N POLL PULSE N
Came with hope in 2014, trust in Raj wears Ram on sleeve,
2019 and guarantee in 2024: PM
Prime Minister Narendra Modi on Wednesday asserted that he
went to people with hope in 2014, trust in 2019 and guarantee in
2024. Addressing an election rally at Borkura
ground here, the Prime Minister said there is
carries business in mind
Dust settles on campaign trail in 12 Rajasthan seats, voting tomorrow
“Modi’s guarantee across the country and I am
giving the guarantee of fulfilling all these SHREYA JAI
guarantees”. “Congress fuelled insurgency but Jaipur, 17 April
Modi embraced people and brought peace in

O
the region. What could not be achieved in n Wednesday evening, on the last
60 years of Congress rule, Modi achieved day of the election campaigning
it in ten years”, he added. PTI on the 12 of Rajasthan’s 25 Lok A group of women in Jangethi village near Meerut said that
Sabha seats, the desert state was wrapped they get ~30 for stitching a leather ball PHOTO: ANOUSHKA SAWHNEY
in the fervour of celebrating Ram Navami.
Will abide by party order: Rahul In Rajasthan, where communities and

on contesting from Amethi

Amid intense speculation over whether he would
contest the Lok Sabha polls from Uttar Pradesh’s
Amethi, Congress leader Rahul Gandhi on
Wednesday said he will follow “whatever
order” he gets from his party. Gandhi made
the remarks at a joint press conference with
Samajwadi Party (SP) chief Akhilesh Yadav. “In
our party, these decisions are taken in the
CEC (Central Election Committee)
meeting,” he stressed. PTI
Rajnath seeks Cong stand on
CPI(M) vow to dismantle nukes
Senior BJP leader Rajnath Singh on Wednesday questioned the
intention behind the CPI(M)’s poll manifesto promise to
dismantle nuclear weapons in the country and demanded to
know the stand of the Congress on this issue. Singh alleged talk of
dismantling India’s nuclear weapons amounted to playing with
national security and that there was a “deep-rooted conspiracy
to weaken the country”. He accused the Left and the Congress,
both allies in the anti-BJP INDIA bloc, of apparently trying to
weaken the country. PTI
Campaigning ends for 1st phase
of Lok Sabha polls in 102 seats
Campaigning ended Wednesday evening for 102 Lok Sabha seats
across 21 states and Union territories which will go to polls in the
first phase on April 19 with top leaders of the BJP-led NDA and the
opposition INDIA bloc making a last-gasp effort to woo voters.
Home Minister Amit Shah, Defence Minister Rajnath Singh and
several of their cabinet colleagues, leaders of the Congress such as
Mallikarjun Kharge and Rahul Gandhi, and other parties also
canvassed for their candidates. The Opposition leaders have
attacked the government over electoral bonds.
villages have traditionally had their own
deities, devotees thronged Ram temples,
while streets and markets in Jaipur buzzed
with shobha yatras, people queuing up for
food distributed at bhandaras and playing
of bhajans on loudspeakers.
The city’s streets were plastered with
posters marking Ram Navami, mostly
sponsored by sundry affiliates of the
Vishva Hindu Parishad (VHP), which had
led the Ram Janmabhoomi movement.
The VHP headquarters in the city organ-
ised a shobha yatra (road show).
Some of its members this newspaper
spoke with, alluded to the ‘pran pratishtha’
(consecration) of Rama’s idol at the temple
in Ayodhya, to say “Ram’s time has come”.
On Ayodhya’s Ram Mandir weighing
on the elections, one repeated a line from
Goswami Tulsidas’ Ramcharitmanas –
‘Hohi wahi jo Ram rachi rakha’ (Only that
will happen what Ram has written). The
devout milled around in temples
adorned with idols of Ram, Sita-Ram and
the Ram Darbar. But does that mean that
Lord Ram and the ‘pran pratishtha’ would
also influence voting behaviour?
“It is difficult to say. In the cities people
know what bhakti actually is, what is gim-
mick, and electing which leader will ben-
efit them. This is a ‘businesswala’ attitude
that this city has,” a shopkeeper, who plies
his trade outside a temple in Jaipur, said.
His companion added that the issues
are unique which have no bearing with
the religion. “But the clarion call of the rul-
ing party of ‘Hindu jaago’ is working. The
Muslim community is side-lined. It makes
us proud but doesn’t solve our problems,”
he said.
Another shopkeeper in Jaipur’s
Chandpole area, however, interjected to
PTI say that at the end of the day only business
There are around 80 small or big temples near the 128-year-old Thikana Shri Ram
Temple at Jaipur’s Chandpole, which will see voting on April 19
PHASE 1 IN RAJASTHAN: Ganganagar, Bikaner, Churu, Jhunjhunu, Sikar,
Jaipur Rural, Jaipur, Alwar, Bharatpur, Karauli-Dholpur, Dausa, and Nagaur
matters. He pointed at a blue board just
meters away. It declared Kishanpole leg-
islative assembly area. MLA: Amindudin
Kagzi, Indian National Congress.
Inside Jaipur’s walled city, in the 128-
year-old Thikana Shri Ram Temple at
Chandpole, a devotee said he has been vis-
iting the temple for over two decades but
has never met such a multitude of people.
Inside the temple premises, there were
more posters and banners announcing the
holding of Shobha Yatras and Bhandaras
on the occasion of Ram Navami. The
catchy ‘Ram Aayenge’ song played on loop
with some devotees dancing to it. Saffron
flags, a common sight across northern
India after the inauguration of the Ram
temple in Ayodhya, fluttered from the
temple’s tall outer wall. The temple is said
to have been constructed by Rani Gulab
Kanwar, wife of Raja Sawai Mansingh.
“Shri Ram bhakti is in vogue now, as
was the devotion for Sai Baba some years
back. But Shri Krishna has been the main
deity in these parts. But now people are
flanking the Ram temples in the last cou-
PHOTO: SHREYA JAI
ple of years, especially after 22 January,” a
shopkeeper, who plies his trade outside
the temple, chuckled.
He added that is a “proud” Hindu and
commerce-oriented areas of Rajasthan,
such as Jaipur, usually don’t mix religion
with their political preferences.
Jaipur’s walled city where this temple
is situated has close to 80 small or big tem-
ples. The area is filled with marble shops
specialising in idols of various Gods. Has
the sale of Ram idols gone up? “There is
some interest. People want for gifting but
if you mean bulk orders, then no,” a trader
who deals in the sale of marble artefacts
said. Near the temple, another visitor said
he visited the temple for the first time to
imbibe the excitement. In 2019, the BJP
had swept Rajasthan, winning 24 with ally
Rashtriya Loktantrik Party’s (RLP)
Hanuman Beniwal winning the Nagaur
seat. But this time, Beniwal is in Congress’
camp. While his opponent from five years
back, Jyoti Mirdha, is now in the BJP.
With inputs from Archis Mohan in New Delhi
Women help
groups weave
success tales
ANOUSHKA SAWHNEY
Meerut/Muzaffarnagar, 17 April
With dusk fast settling over the
skyline, a group of 10 women
in Jangethi village near
Meerut went into a quick hud-
dle. Holding handmade bas-
kets, which they had weaved
after a hard day’s work, they
then started negotiating a
decent price.
And all this while they were
also weaving something else
— plans on how they would
spend their first earning.
“We will buy offerings for
our gods and treats for kids
from the first payment,” said
one of them, as others happi-
ly nodded.
Eco Roots Foundation, a
non-governmental organisa-
tion dedicated to environmen-
tal conservation, has formed a
group of 20-25 women in the
village, who make eco-friendly
handmade items.
Babita, the leader of the
pack, was busy negotiating the
price with Vikram — the
NGO’s coordinator for Uttar
Pradesh. “You know the mar-
ket rate… you tell the correct
price for what we made,”
at present.
A different group of
women in the same village
specialise in stitching leather
balls, a tradition passed down
through generations.
“My mother used to make
these balls around 25 years
ago,” said 23-year-old Shalu.
Sitting in sunlight on a cot,
three women were stitching on
the equator of leather balls.
Another observed with eager-
ness, she wants to learn.
Urmila, with two decades
of experience, said that they
get ~30 for stitching a ball.
“Depending on how many
balls we complete in a day,
we get the total amount
every Sunday.”
Uttar Pradesh has 848,810
such self-help groups with
9,580,275 members.
There is a potential of
438,590 Lakhpati Didis in the
state, according to the Ministry
of Rural Development.
Out of 1.2 crore self-help
groups (SHGs) in the country,
88 per cent are women groups,
according to the Economic
Survey 2022-23.
But in neighbouring

BSP’s electoral strategy: Going 10 free LPG cylinders, insisted Babita.

The work involves extrac-
tion of water hyacinth from
Muzaffarnagar
Noornagar village, some
district’s

women claimed that govern-

solo to counter twin challenges changing FRBM, nixing

RAGHAV AGGARWAL
New Delhi, 17 April
The Bahujan Samaj Party (BSP) has
entered the 2024 Lok Sabha elections
in Uttar Pradesh facing the twin chal-
lenge of retaining its support base
among Dalits and establishing Akash
Anand, party chief Mayawati’s nephew,
as her political successor.
In 2019, the BSP, in alliance with the
Samajwadi Party and Rashtriya Lok
Dal, won 10 Lok Sabha seats, second
only to the Bharatiya Janata Party
(BJP). But any hopes that the party
pinned on this result to suggest a
revival was punctured in the 2022
Assembly polls. It could win only one
of UP’s 403 seats, and its vote share
reduced to less than 13 per cent.
For the 2024 Lok Sabha polls, 28-
year-old Anand has campaigned dili-
gently, including addressing a public
meeting in Nagina. Nagina is one of the
ten seats that the BSP won in 2019, but
emerging Dalit leader, Azad Samaj
Party’s Chandra Shekhar Azad is also
contesting for this constituency. But
political observers say the challenge
facing the BSP is far greater than mere-
ly settling the question of succession
or appealing to the Dalit support base,
especially the youth.
“The BSP’s predicament in UP is
grave now. The state has shown a
propensity towards a two-party system,
or bi-polar politics,” said Ashok Bharti,
who leads the National Confederation
of Dalit and Adivasi Organisations
(NACDOR), speaking to Business
Standard. In the 2022 Assembly polls,
the SP emerged a clear number two.
Bahujan Samaj Party is looking to retain support among Dalits, and establish
Akash Anand (left) as party chief Mayawati’s political successor
No alliance with BJP
For the 2024 Lok Sabha polls, the BSP
has not entered into any alliances and
has also been keen to shed the tag of
being a ‘B-team’ of the BJP. At a rally
in Muzaffarnagar on Sunday, Mayawati
blamed the BJP of being “casteist” and
“vindictive”, adding that the ruling
favoured big business. She accused the
Samajwadi Party (SP) of ignoring the
interests of the Muslims. In a recent
interview, Anand called the Congress
and SP as the ‘B-team’ of the BJP.
The BSP’s list of candidates so far
has 14 Muslim names, including
Mohammad Irfan Saifi from
Moradabad, Zeeshan Khan from
Rampur, Shaukat Ali from Sambhal,
and Athar Jamal Lari, who will fight
against Prime Minister Narendra Modi,
from Varanasi. In 2019, the BSP per-
formed well in western UP, winning
Nagina, Saharanpur, Bijnor and
Amroha from the 16 seats that are
scheduled to vote in UP in the first two
phases. But the BSP’s list also has a sig-
nificant number of Brahmins, like
Rakesh Dwivedi from Akbarpur,
Manish Tripathi from Mirzapur, and
Dayashankar Mishra from Basti.
An uphill battle
According to Shashikant Pandey, pro-
fessor, Department of Political Science
at Babasaheb Bhimrao Ambedkar
University, Lucknow, the BSP should
have gone for an alliance. The acade-
mician, however, believes that the par-
ty has fielded candidates “judiciously”.
“This time, they seem to be trying to
shun the image of a B-team,” he said.
“This can be harmful for both, INDIA
bloc as well as the BJP.” Pandey was,
however, unsure about the BSP’s even-
tual performance in the upcoming Lok
Sabha elections. “The party seems con-
fident right now. In some seats, the BSP
may be in the fight but it seems difficult
for them to win a majority in the state,”
he added.
With inputs from Archis Mohan
CAA in TMC manifesto
ARCHIS MOHAN
New Delhi, 17 April
The Trinamool Congress has pro-
posed a cap on prices of cooking
gas, petrol, and diesel “at affordable
levels” in its manifesto for the 2024
Lok Sabha polls, on Wednesday.
It proposed several social wel-
fare schemes, spoke of “firmly” pre-
serving the federal rights of the
states and promised to repeal the
Citizenship Amendment Act (CAA)
if the Opposition INDIA bloc were
to form a government at the Centre.
It proposed to offer 10 cylinders a
year to poor households free of cost.
“We promise to control petrol
and diesel prices through the for-
mulation of a price stabilisation
fund. We also promise to repeal the
Citizenship Amendment Act (CAA)
and stop the National Register of
Citizens (NRC) exercise in the coun-
try,” senior Trinamool leader Amit
Mitra said in Kolkata. The party
said in its manifesto that it will
introduce a “price ceiling” on nat-
ural gas and oil.
The Trinamool said it will advo-
cate amending Article 155 of the
Constitution to ensure that gover-
nors are appointed in consultation
with state legislatures. It said it will
further amend the Centre’s “asym-
metric” Fiscal Responsibility and
Budget Management (FRBM)
“restrictions on states”. The party
said it rejects the ‘one nation, one
TRINAMOOL’S
ELECTION VOWS
n Price ceiling on oil and
cooking gas prices
n 10 cooking gas cylinders to
poor households for free
n Setting up price
stabilisation fund
n Amending FRBM
n Repealing CAA and
not implementing
Uniform Civil Code
n Amending Article 155
n Three-year “cooling off
period” for judges before
joining a political party
election’ and favours restoring the
Planning Commission.
The manifesto has committed
to reforming the Constitution to
safeguard the stability of state gov-
ernments, make the anti-defection
law more stringent and institute a
commission to oversee the
appointments of the Supreme
Court and High Courts judges
based on merit and eligibility,
instead of reciprocity. It said there
should be a three-year “cooling-off
period” before retired judges can
accept government appointments
or political positions.
local water bodies, which is
then cleaned and dried. The
whole process takes 15 days,
the women explained. “We
then weave and make items
such as baskets, table mats,”
said Vineeta.
After a brief training by the
organisation, the women had
started the work in February.
Others came along later.
“Two women approached
me, and asked me to join,” 62-
year-old Rajesh said excitedly.
But there were challenges
too.
“People would taunt us as
we used to clean the ponds for
the material. But, we kept try-
ing,” recalled Monika.
The Bharatiya Janata
Party’s (BJP) manifesto,
released last week, pledged to
facilitate women’s participa-
tion in the workforce. It also
promised to empower three
crore rural women to become
Lakhpati Didis from one crore
BJP YEARS COMPARED TO UPA ERA
ED searches up 86x,
asset attachments
and arrests rose 25x
PRESS TRUST OF INDIA
New Delhi, 17 April
Searches conducted by the
Enforcement Directorate (ED)
under the anti-money laun-
dering law rose by 86 times
while arrests and attachment
ment schemes don’t
reach them. “We work in the
fields whenever there is a
requirement,” one of them said.
The daily wage is ~250, but not
delivered on time, she added.
Both my daughters have
gone to the field and not
returned yet, said 30-year-old
Shalini (name changed). “If
the government can give work,
which we can do from our
homes, that will be helpful,”
the women said.
But there is hope going
forward.
The women labour force
participation rate (LFPR)
increased to 10.3 per cent in
2023-24 compared to 8.7 per
cent in the year before. The
LFPR for women in rural
areas increased from 9.7 per
cent to 10.8 per cent in the
same period, according to the
data from the Centre for
Monitoring Indian Economy
(CMIE).
pared to 1,797 complaints or
Enforcement Case
Information Reports (ECIRs or
FIRs) filed during the preced-
ing period (2005-14), a jump of
about three times, the data
said. The data shows the
agency also got its first convic-

In Bihar’s Gaya, Manjhi fights a battle for prestige
ANUSHKA BHARDWAJ
New Delhi, 17 April
It is now a battle of prestige for
79-year-old Jitan Ram Manjhi,
the National Democratic Alliance
(NDA) candidate from Bihar’s
Gaya, a seat reserved for
Scheduled Castes. Manjhi, the
founder of Hindustani Awam
Morcha-Secular (HAM-S) and a
former chief minister of Bihar,
has thrown his hat in the ring for
the fourth time after three
failures — 1991 from Congress,
2014 from Janata Dal, and 2019
while representing the Grand
Alliance (Mahagathbandhan).
In 1991, Manjhi’s first attempt
to win the Gaya Lok Sabha
constituency was crushed by
Janata Dal’s Rajesh Kumar who
won by over 50 per
cent votes. Fast
forward to 2024,
Manjhi is now pitted
against Kumar’s
son, Rashtriya
Janata Dal
candidate Kumar Sarvjeet. He is
also a sitting legislator from the
Bodh Gaya Assembly seat but has
of assets jumped by around
25 times in the ten
years since 2014,
compared to the
tion starting FY14 and it has
punished 63 persons
under the anti-mon-
ey laundering law
a challenge at hand to fight the Scheduled Castes, Prime preceding nine- till now. The ED
Narendra Modi-factor. Minister Narendra Modi year period, accord- conducted 7,264
The last time Congress won responded to the Opposition’s ing to official data. searches or raids in
the Gaya seat was in 1984 and the allegations that the RSS and BJP An analysis of the money laundering
RJD in 2004. The BJP clinched intended to change the data by PTI for the past cases across the coun-
victory in 2009 and 2014, and the Constitution. He said that Jitan ten years, between April try during the 2014-2024
Janata Dal (United) Ram Manjhi is a witness to how 2014 and March 2024, against period as compared to just 84
CONSTITUENCY in 2019. However, at
least since 1999, a
the Congress and the RJD
exploited the Dalits, oppressed,
the nine years from July 2005
to March 2014 presents a pic-
in the preceding period - a
jump of 86 times.
WATCH member of the and backward classes for their ture of the federal agency’s It also arrested 755 people
Gaya Manjhi community political convenience, and that “intensified” action under var- during the last decade and
has represented he was indebted to BR ious sections of the Prevention attached assets worth ~1,21,618
the seat. Ambedkar’s Constitution which of Money Laundering Act crore as compared to 29 arrests
At a political rally in Gaya on allowed a person with humble Former Bihar CM Jitan Ram Manjhi (PMLA). The ED booked as and ~5,086.43 crore worth of
April 16, a constituency with over origins like himself to become the has thrown his hat in the ring for the many as 5,155 PMLA cases dur- attachments, respectively dur-
30 per cent of voters from the prime minister of the country. fourth time after three failures ing the last ten years as com- ing the last compared period.
>
NEW DELHI | THURSDAY, 18 APRIL 2024 ECONOMY & PUBLIC AFFAIRS 7

NaBFID eyes ~1 trn India to be

$34.7 trn
infra sanctions
ABHIJIT LELE
economy by
’47: PHDCCI
Mumbai, 17 April
HARSH KUMAR

T
he National Bank for Financing
Infrastructure and Development
(NaBFID) is eyeing fresh sanctions
of ~1 trillion for new projects and refinanc-
ing through structured instruments in the
current financial year (2024-25).
Rajkiran Rai G, managing director of
NaBFID, told Business Standard that the
cumulative sanctions crossed the ~1 trillion
mark by the end of March 2024. While this
was a performance in 15 months since lend-
ing operations began in December 2022,
now the Government of India-backed
lenders would look at fresh sanctions of
~1 trillion each financial year.
Besides lending activity, as part of the
development mandate, it would engage
with urban local bodies to groom them for
raising funds from the market, he added.
The share of greenfield projects in sanc-
tions would grow gradually. The funding
approvals for such projects were about one-
third of the total in 2023-24 (FY24), and it
would rise to 40 per cent in the current
financial year.
Its outstanding loans grew almost 2.6x
to ~35,342 crore at the end of March 2024
(FY24) from ~9,753 crore in March 2023. It
acquired loans worth ~4,258 crore. The aver-
age maturity of acquired loans was 18 years.
While funding would be provided for
refinancing existing loans for infrastructure
projects, it would not be just the replace-
ment of old with new money. The refinanc-
ing would come with certain elements like
forming a portfolio by pooling loans, credit
enhancement, and clear access to cash
flows, Rai added.
As for fundraising to finance projects,
NaBFID would predominantly focus on the
domestic market for issuing bonds and
credit lines from banks and institutions. It
has pegged borrowings at ~55,000 crore in
the current financial year. The specific
NaBFID Managing Director Rajkiran Rai G
said besides the domestic market, the
firm would look at tapping into
multilateral funding bodies
amounts, nature, as well as tenure of long-
term instruments, would depend on market
conditions. NaBFID raised ~19,516 crore by
issuing non-convertible securities during
the financial year ended March 31, 2024, of
which ~10,000 crore had a tenor of 10 years
and ~9,516 crore had a tenor of 15 years.
Rai said besides the domestic market, it
would look at tapping into multilateral
funding bodies which provide credit lines
for 15-25 years. Such lines help in asset lia-
bility management. The option of going to
the overseas market is also open but that
would be beneficial only when interest rates
start easing which is likely in the second
half of the current financial year.
NaBFID reported a net profit of ~1,601.64
crore for the financial year ended March
2024 (FY24), up from ~1,046.39 crore in
2022-23 (FY23). The year gone by (FY24) was
the first full year of its business operations.
Its total income grew to ~3,083.97 crore in
FY24, up from ~1,127.06 crore in FY23.
New Delhi, 17 April
The Indian economy will attain the
size of $34.7 trillion by 2047, with per
capita income of $21,000, a report by
PHD Chamber of Commerce and
Industry (PHDCCI) on ‘Viksit Bharat
@2047’ said on Wednesday. The
report projected that the share of agri-
culture in total gross domestic prod-
uct (GDP) would come down to 12 per
cent in FY47 from 20 per cent during
the previous year, while the share of
industry would rise from 26 per cent
to 34 per cent dur-
ing the same
The report period.
said that The share of
the share of the manufactur-
agriculture ing sector is pro-
in total GDP jected to grow
would come from 16-25 per
down to cent between
12% in FY47 FY23 and FY47.
However, services
contribution to
total GDP is expected to remain the
same, at 54 per cent in FY47.
“Going by the growth paradigms
and support of the economy, various
facilitations, and measures taken by
the government, India will be $7 tril-
lion economy by 2030 and $34.7 tril-
lion by 2047, “ said S P Sharma, chief
economist, PHDCCI. The PHDCCI
has said that life expectancy at birth
will grow to 74 years by 2030 and 84
to 2047. The life expectancy has
increased from 63 years in the year
2000 to 67 years in 2021. However,the
report projected that availability of
hospital beds will be six per 1,000 peo-
ple by 2030 and 12 per thousand peo-
ple by 2047.

> FROM PAGE 1 less active than in past years, a INDIA bloc will make efforts region.” Karan Singh from K R
significant reason being the towards that upon coming to Garments, on the other hand,

Textile hub... decline in knitwear exports

While Tiruppur, which
accounts for 55 per cent of
India’s current textile exports,
is a bustling hub of activity,
Kodumanal is a poignant
reminder of its glorious past.
Historians believe that
Kodumanal’s trade links with
Rome date back to the era of
Julius Caesar, with some
Roman garments believed to
have been exported from here.
In the midst of the remains
of what was once a busy indus-
trial-cum-trade hub, long
before the Dutch and Vasco da
Gama dreamt of discovering
the Indian sea route, the words
of Jyothi Mani, a local resident
in her late 50s, echo political
undercurrents that run deep in
this historic land. “Our major
issue is the availability of water.
We can only engage in coconut
farming and cattle breeding
because of that,” says Mani,
seen at an excavation site. She
reminisces about the site’s
excavation activities starting
from 1985-86, which have been
neglected in recent years.
Reiterating Mani’s views,
Ningathottam Subramaniam,
a 71-year-old farmer who is a
staunch believer in Dravidian
politics, says: “Tamil Nadu pol-
itics is all about the DMK and
the AIADMK. People’s issues
should be addressed.”
Tiruppur, too, appears to be
> BS SUDOKU
SOLUTION TO #4258
during 2023-24. The city wit-
nessed an overall 18.2 per cent
contraction in knitwear exports
from April to February in FY24,
with only February showing
some growth.
With primordial Omkara
sound playing in the back-
ground, K M Subramanian has
been busy working at the office
of his company K M Knitwear.
“The war in Ukraine, the finan-
cial crisis in Europe and the US,
and global business not com-
ing back to normalcy after the
pandemic were the major rea-
sons for the decline in exports,”
says Subramanian, also presi-
dent of Tiruppur Exporters’
Association (TEA).
In the Lok Sabha (LS) polls,
the main battle in Tiruppur, is
between the CPI’s sitting MP
K Subbarayan, the AIADMK’s
P Arunachalam, and the BJP's
A P Muruganandam. The con-
stituency will vote on April 19
in the first phase of polling.
“There are two major eco-
nomic lifelines of Tiruppur --
textile and agriculture.
Infrastructure needs to be
improved for the betterment of
the textile industry, and water
availability should be ensured.
I will be working for that,” says
CPI stalwart Subbarayan. For
textiles, he advocates, the cen-
tral government should take
steps to make cotton prices sta-
ble and promises that the
# 4259
Easy:

Solution tomorrow
HOW TO PLAY
Fill in the grid so that
every row, every
column and every
3x3 box contains
the digits 1 to 9
power.
During the 2019 elections,
the CPI won 45.6 per cent votes,
while the AIADMK got only 37
per cent. “Dravidian parties are
stronger in the region. The BJP
through K Annamalai is trying
to make inroads. Though it is
able to attract the urban popu-
lation and upper caste people,
support of the poor and lower
castes is strong with the
Dravidian parties," says an
industry leader.
According to TEA, the
major issue for the textile sector
is labour shortage. “We are run-
ning at least 30 per cent short
of labour with other states
offering huge sops and creating
clusters like Tiruppur. We want
the new government (at the
Centre) to speed up the free
trade agreement plans with the
UK. The city also needs metro
connectivity with Coimbatore,”
says Subramanian.
Tiruppur’s textile industry
has 600,000 inland employees
and 200,000 migrants. Any
issue that affects the Tiruppur
cluster affects four LS con-
stituencies, too — Tiruppur,
Erode, Pollachi, and Nilgiris —
with several employees belong-
ing to these areas.
“Cotton prices have gone
up, resulting in product prices
moving up by 50 per cent.
Some brands in Europe have
turned bankrupt, which is also
affecting orders. Because of the
non-availability of skilled
labour, we are running at 60-
70 per cent capacity. There
should be proper hostels and
housing facilities for migrant
workers,” says R Senthil
Kumar of Premier Agencies, a
Tiruppur-based MSME. The
net average salary of employ-
ees in the cluster is around
~20,000. TEA is demanding
better roads and infrastruc-
ture, as industries are spend-
ing an average of ~100 per
employee per day for trans-
port, too.
The major brands that
source from Tiruppur include
European majors, including
Primark, Walmart, Marks
& Spencer, H&M, Tommy
Hilfiger, and Target.
In 2022-23, Tiruppur con-
tributed to around ~34,350
crore or 56 per cent of India’s
total knitwear exports of
~61,764 crore. In 2023-24, until
February, it was seen at ~28,091
crore, or 55 per cent of India’s
~51,072 crore exports.
“The number has come
down in volume terms, too.
That is a concern,” notes
Senthil Kumar. In addition to
exports, domestic market sales
from Tiruppur come to the
tune of ~27,000 crore.
At Khaderpet, the largest
wholesale market in Tiruppur,
K Babu, who runs a wholesale
shop, says: “Since GST got
introduced, around 800-900
amendments were made.
However, it is still hurting
small traders like us in the
blames the LS polls for the
decline in his sales. “We expect
domestic sales to pick up after
the polls,” he says.
Reminiscing the vibrant
history of this region, an indus-
try leader says Kodumanal is
proof of why before learning “A
for Apple”, kids in Tiruppur
learn “T for Textiles”. With a 55
per cent export share and a his-
tory that dates back to Caesar,
it is rightly so.
Vi anchor
book...
He further said that GQG is
likely to invest more in the
main book. Initial reports sug-
gested that GQG was eyeing an
investment of over ~4,000
crore in the Vodafone Idea FPO.
The allottees were decided
after a meeting of the ‘capital
raising committee’ of the tele-
com company late on Tuesday.
An anchor allotment is made a
day before the FPO opens. As
Wednesday was a market holi-
day, the offer will open for sub-
scription on Thursday and
close on Monday. Axis Capital,
Jefferies India, and SBI Capital
are the investment banks man-
aging the share sale.
Market players said that the
encouraging demand seen in
the anchor category would
boost sentiment ahead of the
cash-strapped telco’s FPO. The
company is also struggling
with the loss of subscribers to
stronger rivals Reliance Jio
Infocomm and Bharti Airtel.
Vi has set the FPO price
band at ~10-11 per share. The
stock ended at ~12.9 on
Tuesday, down 1.9 per cent
from its previous close. The
upper end of the price band is
nearly 15 per cent below the
current stock price.
Workers...
“For instance, the Ministry of
Housing and Urban Affairs will
have data on street vendors
and the finance ministry will
have data on Atal Pension
Yojana. They will bring this
data together on the portal,”
the official added.
Meetings have already
begun with the relevant min-
istries and government depart-
ments regarding the same, the
official added. Once all the data
is merged, the worker will then
have to fill out an application
form and apply for facilities like
ration cards, health care, hous-
ing, or insurance, which the
worker hasn’t been availing of.
Since the eShram database
is Aadhaar-seeded, it will help
authorities to keep duplicity
and redundancy in check and
better target the beneficiaries.
The universal account number
allotted to workers will be used.
More on business-standard.com
8 WORLD
>
AHMEDABAD | THURSDAY, 18 APRIL 2024

IN BRIEF ISRAEL-IRAN FLARE-UP Biden to call for

UK inflation decline slows,
pushing back rate cut bets Saudi, UAE: Spare region 25% tariff on
Britain’s inflation rate slowed by
less than expected in March,
according to official figures
published on Wednesday, adding
UK CPI Y-o-Y (%)

from the dangers of war Chinese metals

to signs that a first interest rate cut REUTERS into Chinese trade practices
by the Bank of England could be Washington, 17 April across shipbuilding, maritime,
further off than previously Israel will make its own decisions about how to defend itself, says Netanyahu and logistics sectors, which
thought. British consumer prices US President Joe Biden will could lead to more tariffs.
rose by an annual 3.2 per cent,
down from a 3.4 per cent increase
in February and its lowest in two
REUTERS & BLOOMBERG
17 April 5,000 lives in one shell: Gaza’s IVF call for sharply higher tariffs
on Chinese metal products as
part of a package of policies
The measures, set to be
unveiled as Biden visits the
headquarters of the United
embryos destroyed by Israeli strike
S
and a half years, the Office for audi Arabia and the United Arab aimed at pleasing steelworkers Steelworkers union.
National Statistics said. REUTERS Emirates (UAE) called for maximum in Pennsylvania, at the risk of
“self-restraint” in West Asia to spare angering Beijing. ‘Targeted intervention’ on
the region “from the dangers of war and In campaign stops in the the cards: White House

Tesla to seek shareholders’ its dire consequences,” in an unusually

frank joint statement Wednesday.
“Steel City” of Pittsburgh,
Biden is expected to propose
Jared Bernstein, director of the
White House Council of
nod for Musk’s $56 bn pay The comments came after a call
between Saudi Arabia’s Crown Prince
raising to 25 per cent the tariffs
imposed by Donald Trump on
Economic Advisers, said on
Wednesday the “targeted
Tesla will ask shareholders to vote again on the same $56 billion Mohammed Bin Salman and UAE Chinese steel and aluminum intervention” being consid-
compensation package for Chief Executive Officer Elon Musk that President Mohammed bin Zayed Al products, according to an ered by the Biden administra-
was voided by a Delaware court early this year. In its proxy filing Nahyan, as tensions escalate following administration official. tion should not worsen persist-
issued Wednesday, Tesla also said it will call a vote on moving the Iran’s missile and drone strikes on Israel The products targeted at ently high inflation.
company’s state of incorporation to Texas from Delaware. The on Saturday night. present face up to a 7.5 per cent “If we don’t take action,
carmaker will convene its annual meeting on June 13. Tesla Chair The leaders of Saudi Arabia and the levy under a Trump-era policy. we’re putting at risk about one
Robyn Denholm criticised the Delaware Chancery Court’s January UAE discussed developments in West Asia The Biden administration is of our most critical sectors —
decision, writing in the proxy that it amounted to second- and the dangerous repercussions on secu- also pressuring neighboring what the president calls the
guessing shareholders who had approved Musk’s rity and stability, the UAE’s state-run WAM Mexico to prohibit China from backbone of the American
performance-based award in 2018. BLOOMBERG news agency reported. The call was initi- selling its metal products to economy, the bedrock of our
ated by the Emirati leader, Saudi Arabia’s the US indirectly from there. national security — and that’s
state-run news agency SPA said. At the same time, it is domestic steel production,” he
FTC preparing lawsuit to block Meanwhile, Israeli Prime Minister
Benjamin Netanyahu on Wednesday said
launching an investigation told CNBC.

Tapestry’s $8.5 bn Capri buy that Israel will make its own decisions
about how to defend itself, as Western
LOST HOPE: When an Israeli shell struck Gaza’s largest fertility clinic, the explosion
blasted the lids off five liquid nitrogen tanks stored in a corner of the embryology China begins inspections of
US antitrust enforcers are preparing a lawsuit seeking to block
fashion company Tapestry’s $8.5 billion planned takeover of Capri
countries pleaded for restraint in respond-
ing to a volley of attacks from Iran.
unit. As the ultra-cold liquid evaporated, the temperature inside the tanks rose,
destroying over 4,000 embryos plus 1,000 more specimens of sperm and unfertilised financial regulators, largest banks
Holdings, according to a source. The Federal Trade Commission eggs stored at Gaza City’s Al Basma IVF centre. The embryos in those tanks were the China on Wednesday kicked off new anti-graft inspections of
(FTC) is expected to file a lawsuit as soon as Monday, according to Israel PM meets Germany, UK last hope for hundreds of Palestinian couples facing infertility PHOTO: REUTERS some of its largest state lenders, the central bank and key
the person. Tapestry had no immediate comment on the foreign ministers regulators, the first broad probe since a round in 2021 that sent
expected suit. If successful, the suit could scuttle the creation of a Netanyahu met the German and British shock-waves through the industry.
US-based luxury conglomerate to compete with the big European foreign ministers, who both travelled to Earlier, Cameron said it was now apparent G-7 weighs new Iran air sanctions The Ministry of Finance, the National Financial Regulatory
fashion companies. Tapestry sells luxury goods under the Coach, Israel as part of a coordinated push to keep Israel planned to retaliate for the Iranian Some Group of Seven (G7) nations are con- Administration, and the China Securities Regulatory Commission
Kate Spade and Stuart Weitzman brands, while Capri controls confrontation between Israel and Iran missile and drone strikes. sidering fresh sanctions on Iran Air in will be targets in the on-site checks by the anti-corruption
labels Michael Kors, Versace and Jimmy Choo. BLOOMBERG from escalating into a regional conflict Baerbock said escalation “would serve response to Tehran’s April 13 attack on authorities, broadcaster China Central Television reported.
fueled by the Gaza war. no one, not Israel’s security, not the many Israel, a move that would further curb the China’s biggest state-owned lenders, led by Industrial &
Netanyahu’s office said he thanked dozens of hostages still in the hands of Iranian carrier’s flights to Europe. Commercial Bank of China, as well as the main bourses in
LVMH sales growth slips on David Cameron and Annalena Baerbock
for their support, while telling them: “I
Hamas, not the suffering population of
Gaza, not the many people in Iran who are
The sanctions would be part of a
broader array of punishments meant to
Shanghai and Shenzhen will also be inspected, according to the
report. Central government inspection teams have been
luxury spending slowdown want to make it clear — we will make our
own decisions, and the State of Israel will
themselves suffering under the regime,
and not the third countries in the region
further isolate Iran after the attack.
A final decision on the measures to
stationed in 17 out of the total of 34 entities involved, CCTV said.
The inspections, which also include non-financial entities, will
LVMH sales growth slowed at the start of the year as wealthy do everything necessary to defend itself.” who simply want to live in peace.” impose on Iran has yet to be finalised. last for three months. BLOOMBERG
consumers reined in spending on pricey Louis Vuitton handbags
and Hennessy Cognac. Organic revenue at the luxury group’s
fashion and leather goods unit — its biggest division — rose 2 per
cent in the first quarter, Paris-based LVMH said. That compares with
18 per cent growth a year earlier at the unit, which houses brands
such as Louis Vuitton, Christian Dior, Celine and Loewe. LVMH shares
Saudi’s Neom hunts for more
gained 3.6 per cent in trading in Paris. REUTERS & BLOOMBERG
cash for $1.5 trn desert city
BLOOMBERG Most of the development’s funding

Toshiba to axe 5K in 17 April

Saudi Arabia’s Neom is planning

so far has come in the form of equity
injections from its owner, Saudi
Arabia’s sovereign wealth fund, which
restructuring bid its debut riyal bond sale for later
this year as it looks for more
is led by Crown Prince Mohammed.
But to pull off the ambitious
sources of funding for the $1.5 trillion project, Neom’s developers have
BLOOMBERG
17 April
Morgan Stanley worth of construction projects it’s
planned for the futuristic city,
been hunting for new forms of
cash in recent months.

Toshiba Corporation plans to

cut 5,000 jobs in Japan,
or roughly a tenth of its
domestic headcount, in a bid
to cut costs and focus on its
infrastructure and digital
technology operations, the
Nikkei said Wednesday.
plans biggest according to sources.
Neom has appointed banks
Neom recently secured a 10 billion-
riyals loan from a group of Saudi
round of including HSBC Holdings and the banks. The project’s developers have
China job cuts securities units of Al-Rajhi
Bank and Saudi National
Bank to advise on the sale of The bond sale
also raised a 3 billion-riyal
loan to finance Sindalah, a
luxury tourism island in the
Dubai grinds to a halt Cars stuck on a flooded road
after a rainstorm, in Dubai on
Wednesday PHOTO: REUETRS
Morgan Stanley plans to
start cutting about 50
investment-banking jobs in
Islamic bonds, or sukuk, the
people said. The debt would
be denominated in the local
could come as
early as the
second half of
Red Sea.

The Tokyo-based com-
pany, whose operations
span from light bulbs
to nuclear power plants,
plans to slash workers at the
parent firm’s noncore
teams, the Nikkei said
Wednesday. The com-
pany is expected to
book a one-time
loss of roughly
¥100 billion ($650 mil-
lion), it said.
Toshiba, which was
bought out by a consortium
led by Japan Industrial
Partners last year, has been
seeking to turn itself around.
The recently privatised
company has struggled for
years with management mis-
steps and scandal. It paid the
country’s largest penalty ever
for falsifying financial state-
ments in 2015, and then had
to sell off its crown jewel
memory-chip business,
the Asia-Pacific region this
week, with at least 80 per cent
of the reductions in Hong Kong
and China, people familiar
with the matter said.
The planned cuts
affect about 13 per cent
of the 400 bankers in
the region, excluding
Japan, one of the
people said. More
than 40 people in Hong
Kong and mainland China
are expected to lose their jobs
in the coming round, the
people said.
The final size and timing of
the cuts may change, the
people said. The job cuts
would be the deepest in years
for Morgan Stanley in China, its
biggest market in the region.
BLOOMBERG
Kioxia Holdings, to pay for
losses from an ill-fated expan-
sion in the nuclear business.
currency and could raise as
much $1.3 billion, they said,
this year. A
final decision
asking not to be identified as
the information is private.
on the timing
and offering
The sukuk sale could
come as early as the second
size will
depend on
half of this year. A final market
decision on the timing and conditions
offering size will depend on
market conditions.
Representatives for Neom, HSBC,
and Saudi National Bank declined to
comment, while a spokesperson for
Al-Rajhi Bank did not respond to a
request for comment.
The city, located in the
kingdom’s northwestern desert, is a
brainchild of Crown Prince
Mohammed bin Salman.
The development’s signature
project is The Line, a pair of
mirror-clad skyscrapers that the
kingdom hopes will ultimately stretch
170 kilometres and house all of a city’s
normal functions. Neom’s plans also
include an industrial area, ports and
tourism developments.
Scaling Back
as flooding worsens
Saudi Arabia has scaled
back its medium-term
BLOOMBERG
17 April
address water security issues, but
the lack of drainage in many areas
28 Indian
ambitions for The Line,
people familiar with the Dubai flights have been severely
can trigger flooding.
Dubai airport, one of the flights
matter told Bloomberg
earlier this month. While
disrupted and cars were left
stranded on flooded roads after
world’s busiest, is suffering from
“significant disruption,” it said cancelled
the government at one point record rainfall over the past day Wednesday on X.
hoped to have 1.5 million brought the city to a standstill. As many as 28
residents living in The Line The United Arab Emirates Emirates to suspend Indian flights —
by 2030, it now expect the experienced its heaviest down- check-ins until midnight 15 Dubai-bound
development will house fewer than pour since records began in 1949. Emirates is halting all check-ins and 13 to India,
300,000 residents by that time. It caused chaos for residents as for passengers as bad weather in have been can-
The plans to pursue a sukuk sale water entered the city’s expensive Dubai disrupts travel in one of the celled due to heavy
comes as the Public Investment Fund, homes and underground car busiest aviation hubs. rain and storms causing
as the kingdom’s main state fund is parks, left some buildings without The biggest international air- widespread flooding
known, has been considering plans to power and resulted in widespread line said that check-ins would be across the UAE. According
accelerate debt sales of its own and by flooding even a day later. halted from 8 am local time and to NDTV, over 500 flights
its subsidiaries. One person died after being run through midnight. Transit — both inbound and out-
The PIF has also considered swept away by flash floods in the passengers are permitted to pro- bound — have been
obtaining bank loans or offering up north of the country. In Oman, at ceed to their connecting flights, diverted or cancelled amid
equity in the companies it controls as least 18 people have died in recent the carrier said in a statement. forecast of more rain and
it hunts for new sources of cash. days as the heavy rains caused “Emirates is working hard to storms today, with Indian
The PIF’s effort to obtain more cash flooding, AP reported. restore our scheduled operations, aviation authorities cancel-
comes as total spending by the fund is The heavy rains across the and our teams will provide all ling about 15 flights bound
set to top $70 billion a year after 2025, nation came after cloud seeding. possible support to affected for Dubai, while 13 flights
up from current levels of about The UAE had been carrying out customers,” the airline said in to India. AGENCIES
$40 billion to $50 billion a year. seeding operations since 2002 to the statement.

Vietnam mounts ‘unprecedented’ $24 bn rescue for bank engulfed in fraud

Truong My Lan was sentenced to death on April 11 after being
found guilty of masterminding the fraud
IN A NUTSHELL
Truong My Lan, chair of major developer
Van Thinh Phat, was found guilty of
embezzling cash from Saigon Commercial
Bank over the course of a decade
How did she steal n Police identified over
REUTERS year at 37 per cent of gross domestic nation’s annual economic output, or
so much? 40,000 victims, all of
Hanoi, 17 April product (GDP), while the budget deficit about one-fourth of Vietnam’s foreign-
n Lan was found guilty them SCB bondholders
widened slightly to 4.4 per cent of GDP. exchange reserves.
on three counts: bribery, n Former employees at Vietnam has mounted an Foreign reserves were $100 billion at the The central bank placed SCB under its
violating banking the State Bank of “unprecedented” rescue of Saigon Joint end of the year, up from $90 billion at the supervision to stem a run on the bank
regulations and Vietnam (country’s Stock Commercial Bank (SCB), a lender end of October. sparked by the October 2022 arrest of real
embezzlement central bank) were engulfed in the nation’s biggest financial As of the start of April, Vietnam’s estate tycoon Truong My Lan. Since then,
n Between 2012 and bribed millions of fraud, according to three bank central bank had pumped $24 billion in SCB has been using the injections to cover
2022, she stole $12.5 bn dollars to hide SCB’s documents and new official information “special loans” into SCB. Lending has cash withdrawals.
from SCB, setting up fake wrongdoings and poor provided to Reuters. slowed slightly but averaged over $900 After the central bank stepped in,
loan applications to financial performance “Without lending, SCB will collapse,” million a month in the past five months. SCB’s deposits plunged 80 per cent to
withdraw money from according to the new information The central bank did not reply to about $6 billion by December 2023. SCB
provided to Reuters. “If the lending requests for comment. The finance could run out of deposits by mid-year at
the bank, in which she How was she exposed?
continues, the national treasury will ministry referred a question to the central the current pace, and bad loans had
owned a 90% stake n Lan was arrested as
PHOTO: BLOOMBERG gradually dry up.” bank. SCB initially told Reuters it would surged to 97.08 per cent of SCB’s credit
n Between February part of Vietnam’s The new information also described circulate the news agency’s request for balance as of October.
‘blazing furnace’
Eighty-five others,
including Lan’s
2019 and September
2022, over $4.4 bn in graft crackdown
the situation as unprecedented for the
massive volume of the cash injections, the
comment, but did not respond to
subsequent emails. An SCB official
Lan, the tycoon whose October 2022
arrest sparked the bank run, was
husband, were cash was transported n Thursday’s trial saw complexity of the operation and the scale declined to comment. sentenced to death on April 11,2024 after
also sentenced from SCB’s headquarters evidence in 104 boxes of existing and potential damage to The State Bank of Vietnam’s being found guilty of masterminding the
by court in to her home and Van and 200 defence lawyers Vietnam’s financial system. previously unreported cash injections fraud. She had pleaded not guilty to
Ho Chi Minh City Thinh Phat's head office were involved Vietnam’s public debt was stable last into SCB amount to 5.6 per cent of the embezzlement and bribery.

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OPINION 9
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VOLUME XXXI NUMBER 1

NEW DELHI | THURSDAY, 18 APRIL 2024

Shifting expectations Our forgotten neighbour

No respite from US inflation and geopolitical tensions Recent trends in Myanmar civil war make a case for India to various minority parties. In May, the NUG announced
a “People’s Defence Force” (PDF). Both the NUG and
upgrade its links with anti-junta forces PDF got off to a shaky start but, with time and against

D
espite the most aggressive and coordinated monetary policy the prevailing conventional wisdom, gained popu-
ILLUSTRATION: BINAY SINHA
tightening in decades, the global economy’s strength has surprised larity and strength, including, especially, through
many economists. The US economy, in particular, has demonstrated alliances with ethnic insurgent allies such as the
greater resilience than initially anticipated. The latest World Economic Arakan Army, the Kachin Independence Army, the
Outlook (WEO) of the International Monetary Fund (IMF), released this week, Shan State Army and the Karen National Liberation
expects the global economy to grow by 3.2 per cent in 2024, 10 basis points higher Army. Basically, Myanmar sank slowly but surely
than its January update. The US economy is expected to expand by 2.7 per cent into a state of civil war, spawned essentially by the
February 2021 military coup.
in 2024, 60 basis points higher than the January projection. The projection for Over the past six to eight months, the tide of
the euro area, however, has been lowered by 10 basis points and is expected to battle seems to have been going against the
expand under 1 per cent. Meanwhile, growth projection for India has been Tatmadaw, though one should never underestimate
improved by 30 basis points to 6.8 per cent for 2024-25. Projections for China the lasting power of state military forces, with access
have been left unchanged at 4.6 per cent. to foreign arms supplies. Last October, the “Three
As the WEO has underscored, stronger than expected private consumption, Brotherhood Alliance” (consisting of the Ta’ang
along with a tight labour market, has supported aggregate demand in some advanced National Liberation Army, the Myanmar National

M
yanmar shares over 1,600 km of border omy both internally and externally. Democratic Alliance Army and the Arakan Army)
economies, including the US. Further, higher government spending has supported
with India, spread across four northeastern Daw Suu was freed in 2011, the NLD contested inflicted hundreds of casualties on the Tatmadaw
aggregate demand. Among large economies, compared to October 2022 projections, states of Manipur, Nagaland, Arunachal the 2015 election and, against all odds and expecta- and took a large number of prisoners (including
additional budgetary support in the US was about 2 per cent of gross domestic Pradesh and Mizoram. But one hears little about tions, won overwhelming victories in both Houses senior officers) in the northern Shan State, bordering
product, while it was a modest 0.2 per cent in the euro area. Households in advanced the country, especially since the coup by the of Parliament and most state legislatures, an aston- China. Although some sort of truce was patched up
economies are also drawing down savings accumulated during the pandemic. On Myanmar Army (Tatmadaw), led by General Min ishing and globally unparalleled victory by the same with Chinese mediation by January 2024, ethnic
the supply side, the easing of supply-chain pressures after the pandemic helped Aung Hlaing, on February 1, 2021, which seized con- leader and party after 25 years. But while the NLD and people’s democratic forces continued to win
increase output. Thus, the risk of the so-called hard landing has not materialised so trol from the democratically elected government of formed a government, key ministries of internal significant battles across the country. Drone attacks
the National League for Democracy led by Aung San order, defence and border affairs remained with the on the junta’s forces, spread thin across the country,
far. However, as the restrictive monetary policy stance begins to affect demand and
Suu Kyi (Daw Suu). So, what’s been happening since? military according to the restrictive 2008 increased. Desertions from the Tatmadaw mounted.
output, central banks are again in focus with expectations of policy-rate reductions. But before that, a quick recap of Myanmar’s gov- Constitution. In effect, the sweeping electoral victory Feeling the growing pressure, in late February, the
In this context, the IMF notes that with inflation projected to decline towards ernmental history may be helpful. gave Daw Suu and the NLD the right only to partner junta promulgated compulsory conscription for
the medium-term target in advanced economies, major central banks are expected After about 15 years of post-inde- the military for the next five years young men and women, triggering a flight of young
to start lowering interest rates in the second half of 2024. By the fourth quarter, for pendence democracy, the long (a crucial fact usually missed in Myanmarese to neighbouring countries. Early last
instance, the US Federal Reserve is expected to reduce the policy rate from 5.4 per reign of military juntas took over, most commentary). In the most week, the Tatmadaw lost control of Myawaddy, a
cent to 4.6 per cent, which is similar to the projection made by Fed officials in the beginning with General Ne Win’s recent general elections of key trading hub in the Karen state near the Thai
coup in 1962. The widespread stu- November 2020, Daw Suu and the border and even sought Thai help to evacuate some
last meeting. However, the last stretch of disinflation to reach the inflation target
dents-led revolts in urban areas in NLD won their third consecutive of its beleaguered forces.
is looking challenging in the US. The inflation rate for March, at 3.5 per cent, 1988 and the chance visit home by massive electoral victory. However, On the other side of the country, a few days ago,
surprised analysts on the upside and reduced the possibility of policy-rate reduction. Aung San Suu Kyi from England (to impatient military leaders and their the Indian government recognised the gravity of the
Federal Reserve Chairman Jerome Powell noted this week that attaining the target tend her dying mother) ushered in due-for-retirement commanding situation and withdrew personnel from its consulate
of 2 per cent could take longer than expected and the central bank would maintain the birth of the National League for general, Min Aung Hlaing, decided in Sittwe, the port on the Bay of Bengal. According
the current policy rate for as long as necessary. A shift in expectations on Fed Democracy (NLD), led by her. As to get properly back into the saddle to knowledgeable analysts, India’s links with the
policy action can significantly increase financial market volatility and affect capital
flows. Renewed tensions in West Asia will only complicate matters further.
the ferment and bloody suppres-
sion continued, the generals A PIECE OF (or ‘gaddi’) and carried out the coup
of February 2021. The election was
NUG and other anti-junta forces have been relatively
limited and low-level, probably dictated by the long-
Although India has large foreign exchange reserves and portfolio flows have
allowed the election of 1990, which,
against all odds, was swept by NLD,
MY MIND cast aside, the NLD was outlawed,
many of its leaders were imprisoned
felt need for cooperation with the junta to manage
cross-border insurgency elements in regions bor-
been positive in recent months, a significant increase in crude oil prices owing though Daw Suu had already been SHANKAR ACHARYA or killed and Daw Suu convicted, dering our northeastern states. But, given the recent
to geopolitical tensions and a spike in US bond yields, which have inched up placed under house arrest. Soon, the sentenced and imprisoned on sev- trends in the civil war in Myanmar, the case for
over the past few days, can increase macroeconomic challenges. In this regard, unpalatable (to the junta) election eral trumped-up charges, with ver- upgrading our links with anti-junta forces is surely
the Monetary Policy Committee (MPC) of the Reserve Bank of India did well to results were annulled and Daw Suu continued under dicts adding up to nearly 30 years of incarceration! rising. Former foreign secretaries Kanwal Sibal and
leave the policy rate unchanged in its last meeting. Given the disinflation house arrest for most of the next 20 years. With time, The February 2021 military coup triggered mas- Shyam Saran have argued as much, including to act
challenges being witnessed in the US, and potential volatility in oil prices, the Western economic sanctions and the growing inter- sive protests across the country, especially in urban as a credible counterweight to the much deeper
nal recognition of Myanmar’s falling behind the rest areas. The army responded brutally, killing thou- engagement of China on both sides of the Myanmar
wait to attain the 4 per cent inflation target could get longer for the MPC.
of prospering Southeast Asia, nudged the military sands, imprisoning over 20,000, using airpower to conflict (NDTV.com, March 26, 2024; and Business
to craft the new 2008 Constitution (heavily tilted to bomb and strafe civilians, leading to over a million Standard, April 16). Who knows, perhaps this is
favour a big military role in government) and held people being driven from their homes, tens of thou- already happening?

Healthy development the 2010 election, with Daw Suu reverted to house sands to neighbouring countries, especially Thailand.
arrest and the NLD boycotting the patently unfree By April, a loosely coordinated National Unity The writer is honorary professor at Icrier, formerly the
election. The military government’s party won hand- Government (NUG, mostly in exile) had been formed,
Consumer watchdogs must be more proactive ily and ruled till 2015, though with a lighter touch including former NLD lawmakers, representatives
longest-serving chief economic advisor to the Government of
India, and author of An Economist at Home and Abroad

E
ven as domestic Ayurvedic products company Patanjali has drawn the
Supreme Court’s ire for misleading advertising, multinational companies
(MNCs) like Mondelez are facing threats to entrenched markets following
a commerce ministry order that e-commerce companies stop listing all
drinks and beverages under the “health drinks” category on their portals. The order
is the result of a yearlong inquiry by the National Commission for the Protection of
Child Rights (NCPCR) centred on Mondelez’s 78-year-old brand Bournvita. The
advisory follows the Food Safety and Standards Authority of India’s (FSSAI’s) recent
request to online shops not to categorise dairy, cereal or malt-based drinks as “health
drinks” or “energy drinks” on grounds that such a categorisation misleads consumers.
Online advertisements making these claims were also required to be removed. The
latest notice is likely to apply to other popular drinks that claim some form of
nutritional value for consumers. The principal objection, however, is a semantic
one: The NCPCR found that there was no official definition of “health drinks” under
the Food Safety and Standards (FSS) Act of 2006. It should be added that these
brands do not label their products as health products on the packaging.
But this development points to a growing concern among health professionals
about a range of food and drink promotions in India targeting children, a popular
strategy deployed by domestic corporations and MNCs. The commerce ministry’s
notice on “health drinks” has its origins in a controversy raised a year ago by
Revant Himatsingka, a social media influencer who reviews packaged food items.
He uploaded a video pointing to Bournvita’s high sugar content and its impact
on children. Mondelez sent him a legal notice directing that the video be deleted.
Lacking the resources to fight a case against the MNC, Mr Himatsingka complied
and issued an apology. The food company also clarified that the sugar content in
Bournvita was much lower than the daily recommended intake limit. But Mr
Himatsingka’s video had gone viral by then, prompting complaints to the NCPCR,
which directed Mondelez to withdraw Bournvita’s “misleading” advertisements,
packaging and labels. Contrary to the company’s claims, the NCPCR said Bournvita
appeared to have bypassed the added sugar limit by using such labels as
“Maltodextrin” and “Liquid Glucose”, which needed to be displayed under the
title of “added sugar”, under the FSSAI’s Labelling and Display Regulations, 2020.
In December, the company reduced the amount of added sugar in Bournvita.
Both the NCPCR and commerce ministry actions are unexceptionable, but
the question that arises is why the public custodians of consumer welfare have
not been more proactive. The category of “health drinks” has been around for
several years, but it took an activist influencer’s campaign for the government
to act. At the same time, hundreds of other influencers, a rapidly growing
marketing category, extol the virtues of dubious food and drink products without
regulatory checks and balances. The case before the Supreme Court involving
Patanjali Ayurved highlights a similar gap. It was brought by the Indian Medical
Association, when, as the apex court pointed out, the government was sitting
“with its eyes closed”. Given that the market for alternative medicine and
packaged foods, especially those targeting children, is growing rapidly, a more
robust consumer welfare watchdog is urgently needed.
and with significant reopening of the isolated econ- of long-established ethnic minority insurgencies and (Harper Collins, 2021). Views are personal
Concrete jungles and Silicon Valleys
T
he Silicon Valley narrative holds a contempo- tups can offer to solve the urban crisis. opment and prosperity, it’s imperative to ensure our
rary allure that inspires and drives millions of One of the primary drivers of homelessness in cities can cope with escalating demands in an afford-
entrepreneurs — a saga of ingenuity, imagi- Silicon Valley is the exorbitant cost of living. able and scalable manner. This necessitates a shift
nation, creativity, and perseverance. Simultaneously, Skyrocketing housing prices have reached unprece- towards more sustainable practices, both in terms
it epitomises the transformation of cities into hubs dented levels, making it increasingly difficult for low- of urban planning — considering space and density
of opportunity. It serves as both an economic blueprint income individuals and families to afford adequate — and in the choices made by companies operating
and a reflection of social challenges stemming from shelter. As tech companies continue to expand and within these cities.
the entrepreneurial boom. For San Francisco, Silicon attract talent, demand for housing has surged, exac- In this context, urban planning plays a pivotal role
Valley symbolises the pursuit of excellence in inno- erbating an already dire situation. The result is a grow- in shaping the trajectory of startup ecosystems within
vation, technology, and human advancement. ing population of homeless individuals who struggle cities. The spatial organisation, infrastructure provi-
However, irony unfolds as one confronts the escalating to find stable housing amid the region’s housing crisis. sion, and regulatory framework set the stage for
issues of homelessness and poverty in this land of Furthermore, the nature of employment in Silicon entrepreneurial activity to thrive. However, the current
promise. According to the 2024 Silicon Valley Index, Valley contributes to this situation. While tech com- urban planning paradigm often struggles to keep pace
the gross domestic product (GDP) share of the Valley panies offer high-paying jobs to skilled workers, they with the dynamic nature of startup growth, leading
(San Mateo and Santa Clara counties only) stood at also rely heavily on contract labour and gig-economy to many issues ranging from inadequate infrastruc-
12.1 per cent, while San Francisco’s share in California’s workers who lack job security and benefits. Many of ture to soaring real estate prices. One of the critical
total GDP was only 5.4 per cent. Yet, these workers struggle to make ends challenges posed by the rise of startups is their strain
the report reveals glaring income and meet, facing precarious living con- on urban resources. As these companies expand, they
wealth disparities within Silicon ditions and financial instability. consume vast quantities of water, electricity, and other
Valley. The top 10 per cent of house- Without access to affordable hous- utilities, exacerbating existing resource strains. This
holds control 70 per cent of the col- ing and adequate support systems, puts pressure on urban infrastructure, leading to ser-
lective wealth, with median house- they are at increased risk of falling vice disruptions, environmental degradation, and
hold income barely keeping pace into homelessness. The homeless heightened vulnerability to climate-related disasters.
with inflation. population in Silicon Valley is also To address these challenges, urban planners must
While Silicon Valley and its diverse, encompassing individuals adopt a holistic approach that integrates sustainability
impact in the United States and the from various backgrounds and cir- principles into urban development. This entails pro-
rest of the world have rarely ever left cumstances. Some long-term resi- moting mixed-use development, investing in public
the limelight, what is more often
overlooked is the effect that such a
CONURBATION dents have been priced out of their
homes due to gentrification and ris-
transportation and green infrastructure, and imple-
menting regulations that incentivise sustainable prac-
phenomenon has on the larger urban AMIT KAPOOR & BIBEK DEBROY ing rents. Others are recent arrivals tices among startups and other businesses.
dynamics of a region. Beyond eco- drawn to the promise of opportuni- Furthermore, fostering collaboration between startups
nomic productivity, it is crucial to understand the ty, only to find themselves living on the streets or in and urban planners can yield innovative solutions to
changing culture, the nature of jobs, labour-force par- makeshift shelters. Regardless of their origins, they urban challenges. By leveraging technology and data-
ticipation rates, ease of living and pressure on munic- share a common struggle for survival in a region driven approaches, startups can help cities optimise
ipal functioning. For instance, in 2021, The New York that has become increasingly hostile to those on the resource allocation, improve service delivery, and
Times ran a headline saying, “They Can’t Leave the margins of society. enhance the overall quality of life for residents. In
Bay Area Fast Enough” while talking about the moving While Silicon Valley’s story is familiar, it’s not turn, urban planners can provide startups with regu-
of many tech startups and their workers from the exclusive to this tech hub. Closer home, a city like latory certainty, infrastructure support, and access to
area. The reasons highlighted were the excessive rate Bengaluru, often dubbed India’s Silicon Valley, is markets necessary for their success.
of rents triggering a cost-of-living crisis for workers, grappling with a mounting cost-of-living crisis amid
and the glaring disparity between the highrise offices climate change-induced resource strains, particularly Kapoor is chair, Institute for Competitiveness, India, and
of wealthy and more established giants like Google on essentials like water. This isn’t to demonise star- visiting scholar & lecturer, Stanford University;
and Meta and the increasing numbers of tents for the tups but rather to underscore the urban disparities X @kautiliya. Debroy is chairman, Economic Advisory
homeless. The sheer juxtaposition of such eminence accompanying their ascent. While the expansion of Council to Prime Minister of India; X @bibekdebroy.
and deprivation begs an investigation into what star- these conglomerates holds promise for urban devel- With inputs from Jessica Duggal

The plague as a metaphor an author’s note, she writes about how

At once frivolous and terrifying, the
Dance of Death, which depicted popes,
emperors, children and labourers all
dancing to their death, was an
allegorical memento mori, reminding
people of the fragility of their lives. The
BOOK REVIEW Dance of Death also graces the cover of
the book under review, a collaboration
UTTARAN DAS GUPTA between Berlin-based historian Julia
Hauser and graphic novelist Sarnath
quarantine by Zadie Smith, and Orhan
Pamuk’s novel Nights of Plague. The
book by Ms Hauser and Mr Banerjee is
a suitable addition to this list, bringing
together robust research, an engaging
writing style, and some gorgeously
created illustrations. It is an accessible
history of how societies around the
world have responded to pandemics
throughout history, such as inhaling
plagues that had affected people around
the world had been studied mostly from
a Eurocentric perspective. “(E)ntire
continents, especially Africa, had been
forgotten,” she writes.
To correct this perspective, she takes
her readers on a roller-coaster ride
“from sixth-century Constantinople
and fourteenth-
century Europe,
Islamic Spain,
seventeenth-
century London and
during the Great London Plague of 1665-
66. But most reflect the paranoia and
circumspection with which humans
responded to epidemics throughout
history — a reminder, if any were
needed, of the callousness with which
many have behaved in our times. An
example that might appeal to Indian
readers is the “Dirt in My Ghee”, in
which Ms Hauser
THE MORAL records the history
CONTAGION of the Bombay
plague in 1896-97.
Author: Julia
Hauser & Sarnath Divisions of class,
many orthodox Paris and Brahmins
refused to take it because the bacilli
were sourced from the bodies of people
of low repute and caste. Then, as now,
people’s choices on how they would
fight a mortal disease depended more
on reasons other than science.
While the stories, with their
contemporary resonances, make the
book immensely readable, Mr
Banerjee’s illustrations elevate the
book. His interest in the macabre and
the uncanny, evident since his early
books such as The Barn Owl’s Wondrous

A
knight called Antonius Block
returns home from the Crusades
to find that his country is reeling
from a plague epidemic. He, too, is
about to die. But he challenges Death to a
game of chess, believing that he will
survive as long as he can stave off a
checkmate. Such is the central conceit of
The Seventh Seal, the 1957 film directed
by Ingmar Bergman, which The
Guardian in 2007 described as “an
untarnished gold standard of artistic and
moral seriousness”. The film, which was
also the first collaboration between
Bergman and his favourite actor Max Von
Sydow, ends with the Danse Macabre.
Banerjee. A blond-haired woman,
wearing black, can be seen being
dragged away by Death in his hooded
costume. But instead of the usual sickle
that the Grim Reaper carries, here he is
shown bearing a stringed instrument,
something like a banjo. The effect is
similar, scary and ridiculous.
The Covid-19 pandemic not only
forced the world to press the pause
button, sparked economic and
political crises, and aggravated social
inequalities, but it also led to an
outpouring of books. Among the
notable ones are Intimations, a
collection of six essays on the
musk and rosemary in 14th-century
Florence or beating their utensils
and crying “Go, Corona Go!” in
21st-century New Delhi.
In the prologue, Ms Hauser, whose
previous works include a history of
vegetarianism, recollects reading
Giovanni Boccaccio’s The Decameron,
collection of short stories inspired by
the Black Death, during the first
outbreak, in 2020, of Covid-19 in Berlin.
“I read the book mostly for pleasure, but
also with an ulterior motive,” she writes.
“I had been wondering if, and how,
Covid would change societies around
the world.” A little earlier in the book, in
Aleppo in the Banerjee caste, and race are Capers (2007) and The Harappa Files
eighteenth century, heightened as death (2011), must have made the plague an
to Hong Kong, Publisher: lurks in the streets of ideal subject for him. His depictions of
Bombay, San HarperCollins India’s western humans make no attempt at
Francisco and South Pages: 137 metropolis. While verisimilitude. Instead, the physical
Africa”. It is a typical Price: ~699 the disease is features of the characters reveal
Global History universal, it is more their psychological states — fear,
perspective that common in the desire, wickedness. They perfectly
abjures nationalist historiography and slums where mill and dock workers live capture how a pestilence can also be,
seeks “the connectedness of the world in unsanitary conditions. to borrow from Susan Sontag, a
as its point of departure”, in the words of Laxmibai Tilak, a contemporary metaphor. For both the physical and
German historian Sebastian Conrad, a writer, recounts how plague camps, moral decay of human societies,
pioneer in the field. where patients were quarantined, were entrapped in a dance of death.
Some of the stories that Ms Hauser “kingdoms of the god of death”. When
collects are humorous, such as English bacteriologist Waldemar Haffkine The reviewer is a New Delhi-based writer
diarist Samuel Pepys’ erotic adventures invented vaccination for the plague, and journalist

NEW DELHI |
THURSDAY, 18 APRIL 2024
Modest rise in net SIP inflows
as redemptions jump 54%
Net SIP inflows up
4.9%, even as gross
collections rise 28%
ABHISHEK KUMAR
Mumbai, 17 April
E
ven as gross inflows through the
systematic investment plan
(SIP) route rose 28 per cent in
2023-24 (FY24), net SIP inflows grew
by a modest 4.9 per cent owing to a
sharp jump in redemptions.
Mutual funds (MFs) raked in ~87,971
crore net SIP inflows in FY24 compared
to ~83,873 crore in 2022-23 (FY23).
During the year, gross inflows rose
28 per cent from ~1.6 trillion to ~2 tril-
lion, while redemptions from SIP
accounts went up 54 per cent from
~72,100 crore to ~1.1 trillion, according
to data from the Association of Mutual
Funds in India (Amfi).
Redemptions from equity schemes
were elevated during some phases of
FY24 as investors booked profits after
an extended run-up in stock prices.
Between April 2023 and July 2023, out-
flows amounted to 80 per cent of gross
inflows in equity schemes.
According to MF executives, the
surge in both gross investments and
redemptions also shows that investors
are churning their portfolios.
In FY24, 42.8 million SIPs were reg-
istered, 71 per cent higher than in FY23.
N IN BRIEF N
JNK India’s IPO
to open on
April 23
Heating equipment maker JNK
India Ltd is set to open its
initial public offering (IPO) on
April 23.The initial share sale
will conclude on April 25 and
the bidding for anchor
investors will open for a day on
April 22, according to the draft
red herring prospectus filed on
Tuesday.The IPO includes a
fresh issue of equity shares
worth up to ~300 crore. PTI
Angel One’s net
jumps at ~340 cr
in March qtr
Broking firm Angel One’s
consolidated net profit for the
quarter ended March 2024
rose 27 per cent to ~340 crore
on year-on-year basis, while
sequentially it grew 30 per
cent. Revenue jumped to
~1,358.5 crore during the
March 2024 quarter from ~830
crore a during the same
quarter a year ago.
BS REPORTER
Sebi attaches a/c
of Anugrah Stock
and Broking
The Securities and Exchange
Board of India has ordered the
attachment of bank and share
and demat holdings of
Anugrah Stock and Broking to
recover ~1.22 crore dues in a
case related to violation of
market norms. The recovery
action have been initiated
against the firm after it failed
to pay the ~1.22 crore. PTI
Long runway of growth for AMCs
Asset management companies are likely to report strong PAT growth in Q4FY24 on the back of AUM growth
DEVANGSHU DATTA
Although net inflows into equity
mutual funds deteriorated
month-on-month (M-o-M) in
March 2024 to ~22,576 crore
(excluding Hybrid), down 15 per
cent M-o-M (up 12 per cent Y-o-
Y), asset management
companies (AMCs) had a great
year with robust growth in assets
under management (AUMs).
AMCs are likely to report strong
PAT growth (30-40 per cent Y-o-
Y) in Q4FY24 on the back of AUM
growth.
In Q4FY24, domestic mutual
fund (MF) industry’s quarterly
average AUM grew by 34 per cent
Y-o-Y and 10 per cent quarter-on-
quarter (Q-o-Q) to ~54 trillion
The Smart
Investor
TAKING EQUITY SIP
Sharp surge in outflows weigh
on net inflows in FY24 (in ~ trn)
nFY22 nFY23 nFY24
2.0
1.6
1.3
Gross inflows
% rise
Y-o-Y 28
in FY24
At the same time, they closed 22.4 mil-
lion SIP accounts, 56 per cent higher
than in FY23.
“SIPs have grown by leaps and
bounds in the past few years, largely
due to an increase in ease of invest-
ment, increased awareness, and mar-
ket rally. However, the ease of opening
and closing SIP accounts could have
Advance-decline ratio set Global funds retreat from Asia’s EMs
for best showing in a year
The advance-decline ratio (ADR), a
barometer for overall market
sentiment, has improved sharply this
month amid a broad-based recovery
in stock prices from their lows in
March.
If the momentum sustains, the ADR
this month could be best in 12 months.
Last month, ADR worsened to 0.8 amid
a rout in the smallcap space. With
2,453 stocks advancing and 1,851
declining so far this month, the ADR
currently stands at 1.3, the best since
April 2023.
The ADR would have been even
better if not for straight losses in the
previous three trading sessions amid
global headwinds such as rising US
bond yields and flare-up in
geopolitical tensions in West Asia.
Foreign portfolio investors (FPIs)
have stepped up their selling of
domestic equities in the past week.
Deepak Jasani, head of retail
research of HDFC Securities, said trader
interest had shifted to small and
midcap once again amidst the
selling by overseas funds in the last
few sessions.
“FPI interest is largely in the
largecaps. By continuously having
long positions in largecaps, traders
face the risk of FPI selling,” he said.
In March, the Nifty Smallcap 100
index came off by as much as 13 per
($652 billion). The equity
quarterly average AUM grew
faster at 45 per cent Y-o-Y and 13
per cent Q-o-Q to ~39 trillion
($469 billion). The equity AUM
accounts for over 70 per cent of
domestic MF industry AUM.
Among listed AMCs, HDFC
AMC and Nippon AMC had
market-share gains and may
report higher growth. The AMC
industry is therefore starting
FY25 on a good note as FY24-exit
equity AUM is 20 per cent higher
than FY24 average AUM. Listed
registrar and transfer agents or
RTAs such as KFin Technologies
will also do well.
However, debt funds
continued to see net outflows for
the third consecutive quarter.
1.1
0.8 0.8 0.8
0.7
Outflow from SIPs Net inflow
54 5 FY24. The broader market Nifty
Source: Amfi
led to higher churn as investors move
in and out of different schemes. Ideally,
investors should stick to their SIPs for
the long term, but as long as they are
committed to investing in MFs through
SIPs, especially during market down-
turns, it’s not much of an issue,” said
Mayukh Datta, chief business officer,
ITI MF.
PLAYING SAFE
ON A REBOUND
In March, the advance-decline ratio
had dropped to a 13-month low
Data as of April 16
Compiled by BS Research Bureau Source: BSE
cent following valuation concerns
raised by the regulator.
The fall came after Sebi chief
Madhabi Puri Buch reiterated concerns
over stretched valuations in the
smallcap space. Buch said there were
pockets of froth in the market, and
allowing that froth to build up may not
be appropriate.
SUNDAR SETHURAMAN
Hence, share of Equity AUM
increased by 600 bps Y-o-Y and
200 bps Q-o-Q to 72 per cent. The
QUICK TAKE: MORE GAINS AHEAD FOR INDIAN HOTELS “Markets are a bit more vulnerable to the
combination of geopolitical shocks in the
Middle East and rapid shift in interest rate
(Share price in ~) The stock of Indian Hotels is up 25 per cent over the last expectations…We see
three months. UBS Securities says the current re-rating is volatility persisting in the
sustainable with earnings upgrades and as the market near-term and remain neutral”
recognises the value of embedded optionality. It has
HOMIN LEE
raised its earnings forecasts to account for better average Senior Macro Strategist,
room rates and management contract revenue Lombard Odier
<
Asian mkts slip as Fed
dithers on rate cuts
BLOOMBERG
17 April
ON FED CUES
Indices Country Apr 17,’24 1-day chg (%)
In a report on Tuesday, Amfi said Asian stocks edged lower fol- AMERICA (as on 20:30 IST)
that MFs witnessed a record surge in lowing hawkish comments by
assets under management (AUM) in
FY24 owing to strong inflows and
US Federal Reserve Chair
Jerome Powell that helped fuel
S&P 500
Nasdaq Composite
US
US
5,048
15,849
-0.05
-0.09
mark-to-market gains. The association a third straight drop in the S&P Dow Jones US 37,997 0.52
noted that retail investors —who prefer 500 and saw two-year
investing through the SIP route — have Treasury yields briefly climb EUROPE (as on 20:30 IST)
played a pivotal role in driving the to 5 per cent. Euro Stoxx 50 Pr Eurozone 4,927 0.2
growth, particularly in equity, hybrid, MSCI’s Asia Pacific Index
and solution-oriented schemes, which dropped as much as 0.4 per FTSE 100 Britain 7,860 0.5
collectively accounted for nearly 58 per cent, briefly erasing all of its
ASIA
cent of industry assets and 80 per cent gains for the year, amid
of folio count. worries about higher-for- Nikkei 225 Japan 37,962 -1.3
“This underscores the increasing longer interest rates and geo- Kospi South Korea 2,584 -1.0
participation of households in the cap- political tensions. Equity
ital markets through MFs,” it said. benchmarks fell in Japan and
S&P BSE Sensex (Apr 16) India 72,944 -0.6
NSE Nifty 50 (Apr 16) India 22,148 -0.6
The MF industry added nearly ~14 South Korea, while shares in
0.9 trillion to its AUM in FY24 on account Hong Kong rose. Chinese Hang Seng Hong Kong 16,252 0.0
of a sharp rally in equities, coupled equities fluctuated at the open.
with strong inflows. Treasury yields traded in a Taiwan TAIEX Taiwan 20,213 1.6
The benchmark indices — National narrow range after climbing to Shanghai SE Composite China 3,071 2.1
Stock Exchange Nifty 50 and S&P BSE fresh 2024 highs Tuesday Source: Bloomberg
Sensex — surged over 25 per cent in when Federal Reserve chief
Powell said it will likely take research for Asia at Union Asian currencies in recent
Smallcap 100 and Nifty Midcap 100 longer to have confidence that Bancaire Privée in Singapore. days, prompting authorities to
gained by 70 per cent and 60 per cent, inflation is headed toward the “The resulting stronger dollar ramp up defense against rapid
respectively. central bank’s target. The is a headwind for most Asia depreciation.
Equity-oriented active schemes wit- remarks represented a shift in markets and for Japan, push- The won jumped
nessed substantial growth of 55 per his message after a key meas- ing the yen towards the Wednesday following fresh
cent during FY24 with AUM reaching ure of inflation exceeded fore- increasingly uncomfortable warnings from South Korean
~23.5 trillion. casts for a third month. 155 per dollar level.” officials.
In FY24, the flexicap category After recent strong US data, The dollar edged lower ver- After starting the year by pric-
emerged as the largest fund category, the market is now pricing in sus most of its major peers ing in as many as six rate cuts
closely followed by largecap funds, 25-to-50 basis point reductions Wednesday after seeing its in 2024, or 1.5 percentage
with multicap funds experiencing the in the Fed rate this year start- best five-day gain since points of easing, traders are
highest percentage growth at 85 per ing July or September, said October 2022. The greenback’s now doubtful there will even
cent, according to Amfi. Kieran Calder, head of equity resilience has hammered be a half point of reductions.
BLOOMBERG
17 April
seen a net inflow for the period.
The MSCI EM Asia Index is just a
whisker away from giving up its Asia EM ex-China equity
flows ($ billion)
as well as rising oil prices, will
exacerbate cost pressures of a
stronger dollar and Asia’s reliance
Global funds are retreating from year-to-date advance. on imported energy. Higher US
emerging markets in Asia, with a The gauge had been up as 3.3 -2.4 20.0 rates also bolster the investment
five-month buying spree of stocks much as 4.6 per cent on the year appeal of Treasuries as a safer
ending on scaled-down expecta- until concerns mounted last week 0.0 option to the region’s stocks.
tions for US rate cuts. that the Federal Reserve will delay Active emerging market funds
Overseas investors have sold rate cuts. -20.0 saw an outflow of $2.7 billion in
nearly $2.2 billion worth of Following a string of unex- March amid rising bets that the
equities in the region’s emerging pectedly high inflation readings, -40.0 Fed will delay easier policy,
markets in April, on a net basis, Fed Chair Jerome Powell indi-
Jan 31,’17 Apr 17,’24 according to Jason Ng, a strategist
according to data compiled by cated Tuesday that policymakers Source: Bloomberg
at Morgan Stanley.
Bloomberg that excludes China. will wait longer than originally Notably they reduced tech-
That will snap the longest streak expected before lowering interest heavy Taiwan, while adding to
of purchases going back to 2017. rates. Investors are concerned that in postponing rate cuts. positions in Saudi Arabia, Turkey
Taiwan has led the outflows the Fed’s delay will force emerging Persistently high borrowing and United Arab Emirates, he
this month, while South Korea has market central banks to follow suit rates due to a solid US economy, wrote in a report.
IIFL Finance board clears Ashmore Group to
rights issue to raise ~1,272 cr cut India exposure,
ABHIJIT LELE shares held by the eligible equity share-
bet on China
Mumbai, 17 April holders of the company.
The rights issue will open on April 30, BLOOMBERG
The board of IIFL Finance has approved a 2024, and close on May 14, 2024, according 17 April
rights issue in the ratio of one equity share to the company’s filing with the BSE.
for every nine equity shares amid the con- Post the rights issue, the total number London-based asset manager Ashmore Group PLC
tinued ban on its gold loan business. of fully paid equity shares will be 423.9 mil- is reducing its exposure to Indian equities and has
The issue price for the lion, assuming full subscrip- made China the top pick in its emerging-markets
rights offer is ~300 per share, tion to the issue and subject (EMs) fund, arguing that India’s stock market is over-
which is at a 29 per cent dis-
count to the closing price of
The rights issue to finalisation of the basis of
allotment.
hyped and overcrowded while China’s is set for a
rebound.
will open on
~421.7 per share on Tuesday April 30 and Earlier this week, Care With $6.5 billion invested in emerging equities,
on the BSE. Ratings put ratings assigned the fund has allocated 26 per cent of its EM equity
close on May 14,
The aggregate amount to according to the to various instruments and fund to China, while reducing India to less than half
be raised via the rights issue company’s filing bank facilities of IIFL that, according to Edward Evans, a London-based
will be ~1,271.83 crore, with the BSE Finance Ltd’s (IIFL) on EM equities portfolio manager. He cites a divergence
assuming a full subscription. ‘Rating watch with negative in valuations as the main reason for the decision.
Under the proposed implications’. “The risk-reward balance is arguably stronger for
board-approved rights issue, the company This was on account of continued China and less so for India,” Evans said. “India dem-
plans to issue fully paid-up equity shares uncertainty regarding the restoration of onstrates fantastic economic growth with great pol-
of the company with a face value of ~2 each. gold loan operations of the company, with icy stability and it’s often quite a fertile ground for
The price of the rights issue would uncertainty on the timelines for comple- stock selection. But that said, one cannot be agnostic
include a premium of ~298 per share on tion of the scheduled special audit, which to price, not least in fast-growing emerging markets,
application. One rights equity share would is to be done as per the Reserve Bank of since you do not want to pay up front for those future
be issued for every nine fully paid-up India’s directive, CARE said. returns.”
THE COMPASS
share increased by 80 bps Y-o-Y
to 12.9 per cent and Nippon
AMC’s market share was up by
40bps Y-o-Y to 6.8 per cent.
investments and individual
investors held ~32.87 trn (around
60.3 per cent of total AUM) in
February 2024 vs ~23.44 trn
Overall, the industry AUM,
which was ~40 trn at end-March
(around 57.6 per cent of total
AUM) in February. SIPs saw
SIP flows (~57,300 crore / $7bn) 2023, stood at ~54.5 trn (Feb`24), growth with 38.5 million gross
and money raised through NFOs which was growth of 36.2 per cent new accounts registered from
(~22,700 crore or $2.7bn). (12.8 per cent due to flows and April 2023 till February 2024.
23.4 per cent due to mark-to- with total SIP accounts at 80.01
Growing AUM market or MTM) in 11 months. mn in February 2024 vs 63.60
As against industry AUM growth This was driven by equity AUM million at FY23 end. The average
of 34 per cent Y-o-Y in Q4FY24, growth of 51.6 per cent (14.3 per monthly SIP contribution in
HDFC AMC’s AUM grew by 36 per cent due to inflows and 37.3 per FY24 (11 months) was ~16,400
cent Y-o-Y, while that of Nippon cent due to MTM impact) in this crore vs ~12,900 crore in FY23.
AMC was up 47 per cent Y-o-Y. period, while debt AUM grew 14.8 The total SIP AUM was at ~10.5 trn
Birla AMC and UTI AMC’s AUM per cent (0.9 per cent because of in February 2024.
grew slower at 21 per cent and 22 flows and 13.9 per cent because of Given the substantial SIP
per cent Y-o-Y, respectively. In MTM impact). HDFC AMC’s total contributions (which increase
the active equity segment (equity AUM market share increased inflow predictability), and the
+ balanced funds), versus 50 per 9bps in February to 11.36 per cent increasing role of MFs in tapping
cent Y-o-Y average growth for the while NAM witnessed a 12 bps household savings, we see a long-
industry, HDFC AMC and increase in total AUM market term trend of growth. The share
Nippon AUM grew by 60 per cent share to 7.99 per cent. prices of listed AMCs have
equity segment saw record net Y-o-Y. Hence, in active equity outperformed the benchmark
inflows of ~1.4trn ($17bn) in which is the most profitable Retail interest Sensex and analysts remain
Q4FY24 supported by increasing segment, HDFC AMC’s market- Equity schemes saw strong retail positive on the sector.
>
NEW DELHI | THURSDAY, 18 APRIL 2024
Predictions of normal rains
a fillip for agrochem firms
Domestic companies may outperform exporters in March quarter and in FY25
RAM PRASAD SAHU
Mumbai, 17 April
W
ith a normal monsoon pre-
dicted in India this year by pri-
vate weather forecasting
agency Skymet and the India
Meteorological Department (IMD),
prospects for domestic agrochemical or
agri-input companies are expected
to improve.
Brokerages believe that the com-
panies whose bulk of revenue comes
from the domestic market will outper-
form exporters in the March quarter
(Q4FY24) and in FY25.
Demand for agricultural inputs was
weak in the December quarter due to
elevated channel inventory, higher
imports from China and pressure on real-
isations, which weighed on margins.
Sentiment in the rabi season was
impacted by below-normal rainfall and
lower reservoir levels. There could
be some improvement in the
March quarter.
Nuvama Research expects domestic
agrochem players to report healthy
growth in the March quarter, while fer-
tiliser and global agrochem players are
likely to see lacklustre performance.
Drilling down, fertiliser players may
face margin pressures due to reduced
subsidies, and global agrochem players
due to inventory destocking and higher
rebates/discounts.
Rohan Gupta and Rohan Ohri of the
brokerage remain positive on domestic
agri-input players such as Dhanuka
Agritech, while they recommend avoid-
ing fertiliser players such as Coromandel.
They also have a negative view on
global agrochem players such as UPL and
Sharda Cropchem. Given the margin
pressure, the two firms are likely to see
losses in Q4 FY24 and risk earnings
downgrades in FY25.
Elara Securities believes that Q4 will
be weak for both domestic and global
players, but is positive on the FY25 pro-
spects of domestic companies.
Prashant Biyani and Ujwal Wadighare
of the brokerage said, “El Nino is nearing
its end and La Niña is likely to set in this
monsoon, according to the Bureau of
SHOWERING HOPE
BS Agrochem Sensex 140
124
120
99
100
Base = 100 80
60
40
Mar 31,‘23 Apr 16,‘24
Meteorology, Australia. We believe La
Niña will be positive for domestic agro-
chemicals as well as fertiliser companies
as a better monsoon will lead to higher
volume growth.”
While Q4 is likely to remain soft, the
analysts are positive about the prospects
of domestic agri-input companies from
FY25. This is due to expectations of a
better monsoon and a higher declared
nutrient-based subsidy in the first half
of FY25.
Even as domestic players could see a
recovery going ahead, exporters and
companies with large overseas opera-
tions could face headwinds.
Harmish Desai of PhillipCapital
Research said that persistent high-chan-
nel inventory in international markets
continues to impact performance.
Q4 performance is expected to be
weak due to price declines and
persistent inventory issues, mostly in
international markets.
IIFL Research is cautious on fertiliser
players given the cut in nutrient-
based subsidy, which may dent their
profitability.
The fourth quarter is off-season for
fertilisers, and hence, the companies will
see subdued performance. This comes as
low volumes and a lower nutrient-based
subsidy rate will continue to dent profit-
ability.
However, a correction in raw material
prices bodes well. It will help companies
register sequential improvement in prof-
itability, according to Ranjit Cirumalla
and Viral M Shah of the brokerage.
Order deferments to the fourth
quarter will aid sequential growth for agri
intermediate companies like SRF, Navin
Fluorine, and Anupam Rasayan, while PI
Industries will continue to show strong
year-on-year (Y-o-Y) growth.
Sharekhan Research expects both
domestic and global agri-input players
to be impacted by inventory destocking
and lower product pricing, which will
severely hit earnings.
They expect most companies to
report subdued financial performance,
mainly due to weak show in exports, and
excessive capacity in China. Lower pro-
duct prices will also result in Y-o-Y mar-
gin contraction for most companies in
the space, according to the brokerage.
Investors in longer-duration
debt funds need to be patient
Experts say while rate cuts remain on the table, their start is likely to be delayed
SANJAY KUMAR SINGH
From a low of 7.01 per cent on March
11, the yield on the benchmark 10-
year government security (G-Sec)
rose to 7.19 per cent on April 16.
Investors who have bet on longer-
duration debt funds hoping for
mark-to-market (MTM) gains are
anxious today.
Spike driven by global factors
Global developments have
contributed to the rise in the 10-year
G-Sec yield. “It has been led largely by
geopolitical risks, which have
affected crude prices and the
currency. Another factor is strong US
data, which has delayed US Federal
Reserve (Fed) rate cut expectations
and led to a rise in US treasury yields,”
says Devang Shah, head-fixed
income, Axis Mutual Fund.
GDP growth projections in the US
are getting revised upward. Inflation
is proving stubborn. Rising US bond
yields are driving domestic yields up.
US rate cuts: Fewer, later
Expectations regarding rate cuts by
the Fed are getting revised downward.
“The market was earlier pricing in
three rate cuts this year but
now expects two,” says
Pankaj Pathak, fund
manager-fixed income,
Quantum Asset
Management Company.
The quantum of cuts has
also been readjusted. “From
an initial expectation of 150
basis points (bps), the
expectation has now been
YOUR
pared to 50 bps,” says MONEY
Joydeep Sen, corporate
trainer (debt markets) and
author.
Pathak expects rate cuts to happen
in October and December.
Favourable G-Sec demand-supply
Delays in rate cuts by the US Fed are
causing similar postponements
and dialling down of expectations
in India.
Experts say the scope for cuts
THE SMART INVESTOR 11
LONGER-DURATION FUNDS: HIT BY TURBULENCE OVER PAST MONTH
Category average
8.3
returns (%) 5.9
n1-month
n6-month
n1-year
-0.6
Category Long -duration funds
Portfolio Greater than
duration* seven years
*Macaulay duration stipulated by Sebi; Returns are of direct, growth plans
exists. “The average inflation
expectation for India in FY25 is 4.5 per
cent. The operative rate is at 6.5 per
cent, providing room for the Reserve
Bank of India (RBI) to adopt a dovish
stance,” says Shah.
Yields may also soften due to the
positive demand-supply balance.
“The government projected a reduced
supply of government bonds this year
in the Budget. Supply may decline
further over the next two to three
years. Meanwhile, strong demand is
coming from insurance companies
and pension funds,” says Pathak.
The inclusion of Indian
G-Secs in foreign bond
indices is expected to drive
demand. “Indian G-Secs
have been included in JP
Morgan indices and the
Bloomberg Emerging
Market Index. Together
they will lead to $20 to 25
billion of flows. Part of this
money has already come
in. Another $15-20 billion is
expected in the second half
of this year,” says Shah.
Two factors causing concern are
volatility in food inflation and
possible hardening of crude prices.
Experts believe October is the
most likely date for the start of
rate cuts.
“In India, inflation could fall below
the RBI’s target in Q3-Q4, potentially
leading to markets pricing in rate cuts
if the US Fed starts lowering rates,”
7.3 7.0 7.0
4.8 4.6 4.4
-0.3 -0.2 -0.2
Gilt funds with 10-yr Medium-to-long
Gilt funds
constant duration duration funds
Across Equal to 10 years 4 to 7 years
maturity
Source: Navigation RA
says Shah.
Shallow cycle
The rate cut cycle is likely to be
shallow—not more than 50 to 75 bps.
After recent developments, Sen says,
it is more likely to be 50 bps. “The
projected average inflation of 4.5 per
cent and the repo rate of 6.5 per cent
are resulting in a positive real interest
rate of 200 bps. If it is assumed that
the RBI will be content with a 150 bps
positive real interest rate, a 50 bps rate
cut appears feasible,” he says.
Hold on to your positions
Investors who have bet on longer-
duration debt funds for tactical gains
need to be patient. “They may need to
wait for 6 to 12 months for these gains
due to possible delays in rate cuts,”
says Shah.
They should also have moderate
expectations vis-a-vis MTM gains
due to the shallow nature of the rate-
cut cycle. Pathak says those investing
in longer-duration debt funds must
have an investment horizon of at least
three years to be able to cope with
intermittent volatility.
If playing for MTM gains, keep
exposure limited. “Younger investors
with higher risk appetite may take an
exposure of as much as 50 per cent to
longer-duration bond funds. Older
investors and those with low-risk
appetite may take up to 20 per cent.
Conservative investors may avoid
them altogether,” says Sen.
12 PRIMED FOR SUCCESS
>
NEW DELHI | THURSDAY, 18 APRIL 2024

BULLS TO DANCE ON D-STREET DESPITE HEADWINDS

Top-performing stocks across sectors may rise 20-40% over the next year, driven by earnings growth and
bullishness on Dalal Street. KRISHNA KANT & RAM PRASAD SAHU write

B
rokerages remain upbeat on the are expected to rise by 20- 40 per cent over
Indian equity market despite the
recent rise in geopolitical tensions
HIGH ON EXPECTATIONS
One-year forward estimate for Nifty
the next year. This is driven by earnings
growth and a continued bullishness on
HDFCBank
globally and a slowdown in consumer 50 and its EPS n Apr-24 n Apr-25 Dalal Street. n HDFC Bank has been a
demand in the country. Here are 10 stocks from the NSE 200
HDFC Bank 130
laggard in the last year Sensex
They expect the broad-based Nifty 50 24,597.4 index that brokerages are most bullish
~1,070.7 and its stock (down 10.6 120
22,147.9

to rally by another 11 per cent from its cur-
rent level over the next year.
According to Bloomberg estimates, the
Nifty 50 is expected to reach 24,597.40 by
the end of April next year compared to its
Tuesday's close of 22,147.90.
In comparison, the index is up 22.6 per
cent since the end of April 2023 and had
rallied 5.63 per cent between April 2022
and April 2023. A rally in the index is likely
to be driven by a continued rise in corpo-
rate earnings.
The Nifty 50’s underlying earnings per
share (EPS) is expected to rise by 14.3 per
cent over the next year to ~1,070.7 from
~936.5 currently. In comparison, the
index’s EPS is up 14.2 per cent in the past
12 months, according to data from the
National Stock Exchange (NSE).
The Nifty EPS tracks the combined net
profit of India’s top 50 listed companies
that are part of the index. This means,
~936.5
Nifty value Nifty EPS
Source: Bloomberg
unlike in the past, brokerages expect a
moderation in the index valuation ratio
over the next one year.
The Nifty 50 trailing price-to-earnings
(P/E) multiple is expected to decline to 23x
by April next year compared to its current
P/E multiple of 23.6x.
In comparison, the index P/E multiple
increased by 13.3 per cent over the past
year from 20.87x at the end of April 2023.
The brokerages see an even bigger upside
in the top-performing stocks.
Top-performing stocks across sectors
about based on their price target over the
next year. Our analysis includes only those per cent since the end of 123.7
stocks that are covered by at least 10 bro- April 2023) has 110
kerages. underperformed
We have also excluded loss-making benchmark indices like 100
companies such as One97 Communi- the Sensex (up 19.5 per
cations (Paytm), even though it has a steep cent) by a big margin 90
Base = 100
price target. 93.8 80
n The stock's under-
The forward price estimates suggest
that brokerages are most bullish on bank-
performance is due to Mar 31,’23 Apr 16,’24
ing, financial services and insurance (BFSI) muted earnings growth
companies, followed by fast-moving con- reported by the bank post its merger with Housing
sumer goods (FMCG) and consumer goods Development Finance Corporation in July last year
firms. Interestingly, companies from these n The bank's net profit was up 6.1 per cent year-on-
sectors have been laggards in recent year (Y-o-Y) in Q2FY24 - the first quarter post-
months. Their share prices have either
merger and earnings growth declined further to 2.6
declined in the past year or have risen
much lower than the rally in benchmark
per cent Y-o-Y in Q3FY24
indices. n Similarly, the Y-o-Y growth in banks' gross interest
However, for the sake of diversity, we income slowed down to 21.8 per cent in Q3FY24 from
have included companies from other sec- 26.3 per cent in Q2FY24
tors, as well in our list.
ILLUSTRATION: BINAY SINHA n Brokerages have, however, now turned bullish on
the stock due to faster growth in incremental

Vedant Fashions Dalmia Bharat Dabur India deposits, improvement in credit-to-deposit ratio,
and relatively low valuation
n Cement maker Dalmia Dalmia Bharat 130 n Demand trends are Dabur India 130
Bharat has also been a Sensex 123.7 expected to be sluggish in Sensex
laggard in the last year the near term though 120
owing to concerns over 120 price cuts have helped 123.7
weak pricing in the boost rural growth in 110
company’s key Southern 110 staples. The company
and Eastern markets 100.2 expects a pick-up in 100
n According to HDFC 100 consumption due to a
positive rabi crop harvest 90
Securities, cement prices Base = 100 92.4
Base = 100 and a normal monsoon
have corrected by 4 per 90 80
cent sequentially in Mar 31,’23 Apr 16,’24 forecast Mar 31,’23 Apr 16,’24
Q4FY24 as against n Gross margins are
expectations of a +0-1 per cent increase at the start of expected to see an expansion on the back of lower
Analyst* TTM ( Ended Dec 2023)
the quarter raw material prices and cost-saving initiatives Target Revenue Net profit
n The company posted an Vedant Fashions 140
18.1 per cent same-store Sensex n However, prices in these key markets now seem to n Dabur mitigated the impact of inflationary pressures Price price P/E P/B growth growth
123.7 through disciplined cost control, operational ( ~) Buy Sell Hold (~) ( x) (x) (Y-o-Y %) (Y-o-Y %)
sales growth in FY23. have bottomed out, which coupled with Dalmia
However, this has slowed 120 Bharat’s strong presence in the East and South regions, efficiencies and judicious price increases, says Centrum 1,509.4 45 0 5 1,886.9 20.4 2.7 9.7 13.1
down over 9MFY24, given along with continuous capacity addition, will help to Research
weak demand trends. A 100 bolster its position in these markets n BP Equities has a buy rating on the stock given that
recovery in sales growth is Base = 100 n The cement major is expected to register healthy the business has a huge terminal value, attractive
expected over the next
couple of quarters 79.5
80 business growth on the back of a 20 per cent clinker
capacity addition by FY26 across its operations
valuation, high return on capital employed and
Dabur’s increased focus on new product innovation Axis Bank
n Even as competitive 60 and launches n Axis Bank has been one of
intensity in the wedding Mar 31,’23 Apr 16,’24 the top-performing banks
Analyst* TTM ( Ended Dec 2023) Analyst* TTM ( Ended Dec 2023) on the bourses last year
wear segment is Target Revenue Net profit Target Revenue Net profit
increasing at a rapid rate, ICICI Securities highlights that Price price P/E P/B growth growth Price price P/E P/B growth growth n The bank's stock price is
Vedant’s competitive positioning continues to be strong ( ~) Buy Sell Hold (~) ( x) (x) (Y-o-Y %) (Y-o-Y %) ( ~) Buy Sell Hold (~) ( x) (x) (Y-o-Y %) (Y-o-Y %) up 22.6 per cent since the
in terms of price, quality, differentiation and data edge 1,968.6 28 3 2 2,479.4 30.4 2.3 9.8 54.5 503.9 33 1 11 604.1 49.8 9.4 7.9 5.5 end of April 2023, higher
n Manyavar has a robust business model with an than about 20 per cent
operating profit margin of 40 per cent, post-tax return rally in the leading
on invested capital of 60 per cent and is currently going benchmark indices in the
through a rough patch, says IIFL Research, which has a
buy rating on Vedant Fashions
Coforge Bajaj Finance period
n In terms of orders, Coforge n The retail non-bank lender n The bank’s good show on
n The stock is down 38 per cent from its December peak Bajaj Finance 150 the bourses is attributed
has been reporting a total Bajaj Finance has also turned
and is now trading at the lower end of the consumer Sensex to relatively faster credit growth along with market share
contract value of $300 a laggard in the second half 140
discretionary pack even though 4-year same-store sales of FY24 after outperforming gains in advances and deposits
million-plus for eight
performance is broadly in line with peers the broader market in the 130 n Investors also expect Axis Bank to gain from its
consecutive quarters now
and brokerages expect it first half of 2023-24 120 acquisition of Citibank's high-margin retail business in
Analyst* TTM ( Ended Dec 2023) to continue this trend in India in March last year
Target Revenue Net profit n The company’s share price is
the March quarter 110
Price price P/E P/B growth growth up 10.9 per cent since the n Brokerages expect the bank’s growth momentum to
123.7
( ~) Buy Sell Hold (~) ( x) (x) (Y-o-Y %) (Y-o-Y %) n Operating profit margin is end of April 2023 compared 100 continue. Religare Broking estimates the bank to grow
905.2 9 1 1 1,223.7 54.0 16.6 2.8 -0.4 expected to improve in to a 19.5 per cent rise in the Base = 100 500-600 basis points higher than the industry growth
90
the March quarter due to BSE Sensex in the period Mar 31,’23 Apr 16,’24 n As a result, Axis Bank’s net profit is expected to grow at a
complete reversal of n The stock’s poor show on CAGR of 21 per cent during the FY23-FY26 period
furloughs and deal ramp-ups the bourses is attributed to investors' concern about a
Hindustan Unilever n Analysts say the IT services company has adequate
margin levers such as peaking-out of sales, general
steady decline in net interest margin from the ongoing
higher interest rate cycle amidst strong credit growth
and administration expenses, moderating attrition, n Bajaj Finance's net profit growth slowed down to 21.1 per
higher offshoring and utilisation cent Y-o-Y in Q3FY24 from 25.6 per cent Y-o-Y growth in
n The recent share price correction of 24 per cent from its Q1FY24 and 62 per cent Y-o-Y growth in FY23
52-week high provides a good investment opportunity n In comparison, its gross interest income was up 32.4 per
and entry point from a medium to long-term cent Y-o-Y in Q3FY24, compared to 33.1 per cent Y-o-Y
perspective, says Sharekhan Research growth in Q1FY24 and 28.2 per cent Y-o-Y growth in FY23
Analyst* TTM ( Ended Dec 2023) n Brokerages now expect Bajaj Finance to report faster
Target Revenue Net profit growth in earnings growth driven by higher loan book
Price price P/E P/B growth growth growth and moderation in its borrowing costs
( ~) Buy Sell Hold (~) ( x) (x) (Y-o-Y %) (Y-o-Y %)
n Volume growth is Hindustan Unilever 130 5,212.2 23 7 6 6,533.3 43.8 9.7 18.5 -11.1 Analyst* TTM ( Ended Dec 2023) Analyst* TTM ( Ended Dec 2023)
expected to have Sensex Target Revenue Net profit Target Revenue Net profit
bottomed out and there Price price P/E P/B growth growth Price price P/E P/B growth growth
120 ( ~) Buy Sell Hold (~) ( x) (x) (Y-o-Y %) (Y-o-Y %) ( ~) Buy Sell Hold (~) ( x) (x) (Y-o-Y %) (Y-o-Y %)
could be a gradual 123.7 6,947.4 30 3 4 8,573.9 31.2 6.3 34.2 28.0 1,052.8 45 0 4 1,274.4 14.5 2.3 21.3 -38.2
recovery going ahead.
While near-term revenue
110

100
ITC
is likely to be muted given n ITC’s cigarette business is expected to witness some
sluggish demand trends, Base = 100 90 recovery in volume growth and improvement in product
gross margins should see
some support on lower 86.8 80
mix backed by innovations in the regular filter and king-
size segment. What should further aid growth (and
Star Health & Allied Insurance
raw material costs Mar 31,’23 Apr 16,’24 market share gains) is a stable tax environment n The stock of health insurer Star Health and Allied
n With normal monsoons n Contribution of the non-cigarette business has increased Insurance has been a laggard on the bourses in
expected this year, upcoming general elections, which to 27 per cent from 17 per cent in FY13. The diversification the last year
will lead to a spurt in spending and freebies, may was led by the FMCG business which grew by almost 5 n The company’s share price is down 5.5 per cent
revive consumer demand from Q2FY25 onwards, says times over the same period with operating profit margin since the end of April 2023 versus a nearly 20 per
Nuvama Research consistently improving to low double-digits cent rise in the leading indices
n Given the scope for improvement in beauty and n During 9MFY24, FMCG business posted a resilient n Analysts attribute the stock’s underperformance
personal care and scaling up in the food and performance in a challenging environment with to concerns about a slowdown in premium
refreshment categories, the Street will keep an eye out industry-leading growth in both revenue and segment income in the March quarter of FY24 given the
for execution in these segments under the new CEO profit, which rose 8 per cent and 36 per cent Y-o-Y high base of Mar’23 and a general moderation in
n The valuation at 45 times FY26 earnings per share respectively, highlights Antique Stock Broking premium income in the health segment
estimates is reasonable given its last five-year average n Other businesses such as hotels are also on a strong n The insurer's net profit was up 36 per cent Y-o-Y
P/E of 65 times on one-year forward earnings, says wicket on the back of robust demand and increased in the first nine months of FY24 while its
Motilal Oswal Research capacity operating income was up 14.3 per cent Y-o-Y in
the period
Analyst* TTM ( Ended Dec 2023) Analyst* TTM ( Ended Dec 2023) Analyst* TTM ( Ended Dec 2023)
Target Revenue Net profit Target Revenue Net profit Target Revenue Net profit
Price price P/E P/B growth growth Price price P/E P/B growth growth Price price P/E P/B growth growth
( ~) Buy Sell Hold (~) ( x) (x) (Y-o-Y %) (Y-o-Y %) ( ~) Buy Sell Hold (~) ( x) (x) (Y-o-Y %) (Y-o-Y %) ( ~) Buy Sell Hold (~) ( x) (x) (Y-o-Y %) (Y-o-Y %)
2,220.9 21 7 15 2,686.5 50.6 10.4 4.8 5.0 426.0 35 1 2 501.4 26.0 7.7 1.0 12.6 560.6 14 6 0 647.5 41.3 5.0 13.5 85.0

TTM : Trailing 12 months; P/E(x): Price-to-earnings; P/B(x) : Price-to-book value; Y-o-Y: Year-on-year; * Analyst recommendations ( in numbers) Source: Capitaline/Bloommberg; Compiled by BS Research Bureau
.
NEW DELHI | THURSDAY, 18 APRIL 2024 13
<
14
>
NEW DELHI | THURSDAY, 18 APRIL 2024 1
.
NEW DELHI | THURSDAY, 18 APRIL 2024 TAKE TWO 15 <

TOP 10 MEMBERS THAT SUBMITTED MOST

NOTIFICATIONS TO TBT COMMITTEE IN 2023
Economies Number of notifications
USA 453 African members were
among the most
Tanzania 420
active in submitting
Uganda 412 TBT notifications, with
Rwanda 361 five East African
Kenya 312 Community Members
Burundi 267 in the top 10. The
Brazil 153 United States
India 113 submitted the most
notifications of any
EU 102
member in 2023
no standard redressal because any disruption domestic industry is against Egypt 79 Source: WTO

mechanism,” an industry causes uneasiness. higher standards because it

executive says, requesting
anonymity.
Some believe QCOs
should cover the entire value
chain of the product.
Ajay Sahai, director-
general and chief executive
officer at the Federation of
Indian Export Organisations
(FIEO) says if a QCO covers
the entire value chain, the
quality of the product
eventually will become
better.
“For instance,” he says, “if
a QCO is imposed on either
the raw material or the value-
added product, and not on
the finished products, it will
be difficult to establish that
the end-product is following
the quality norms. Similarly,
if you have implemented a
QCO on the end-product and
not on the raw material,
there is a possibility that the
product is being
manufactured using sub-
standard imported raw
material.”
“Let’s look at the case of
toys. Initially the industry
was against it, but is now an
ardent supporter of the
QCO,” the official says,
requesting anonymity.
The government has been
holding stakeholder
consultation before and after
the issuance of such orders.
“Exemptions and a greater
timeframe has been given to
micro and small businesses.
Besides, lab testing prices
have also come down, which
will help small businesses,”
the official explains.
Another government
official laments that the
has never focused on quality.
“Wherever product manuals, TOP 5 RESPONDING MEMBERS, 1995-2023
standardisation processes, Number of specific trade concerns
testing laboratories, and
domestic capabilities are
available, we are trying to
introduce QCOs,” he adds.
A senior industry 768 148 137
478 381
representative, requesting
anonymity, says the
ministries and BIS should
conduct more extensive
stakeholder consultations EU China India S Korea USA
before mandating the higher
Economies
standards. “If a set process is
implemented for complaints Overall, the EU was the member responding to most specific trade
and feedback, it will be concerns (new and previous) in the Committee between 1995 and
beneficial to everybody,”
2023, followed by China and India
he adds.

QUALITY OR
In search of clarity
Engineering Export
Promotion Council of India
(EEPC) Chairman Arun
Kumar Garodia says QCOs
are often put in the primary

CONTROL?
engineering raw material
stage, where the suppliers in
the country are a few large
sector players. “Though the
EEPC fully supports imports
of quality products,
wherever required, there
should also be mutual
recognition agreements
India believes developed countries and China use where imports of
corresponding quality
quality control orders as a trade barrier, standards of major countries
are accepted in India,” he
and seeks to play catch-up. What does this mean for says.
An executive at a
the domestic industry? consulting firm handling
QCO-related matters says
companies often complain
they are not given enough
SHREYA NANDI & environment. foreign laboratory test time to adapt. “They
ASIT RANJAN MISHRA However, India believes results from ILAC-accredited sometimes don't even have
New Delhi, 17 April developed countries and labs as proof of compliance clarity on how to sell the
China have been using QCOs with Indian requirements,” goods already produced.

F
rom toys,
footwear and
furniture to
insulated flasks,
smart meters, and
air coolers — the Central
government over the last
decade has mandated higher
standards for production
and imports of such items.
Sample this: Till 2014,
there were 14 Quality Control
Orders (QCOs) covering 106
products. By the latest count,
there are 156 QCOs on
672 products.
QCOs, notified by
government departments in
consultation with the Bureau
of Indian Standards (BIS), are
compulsory in nature, unlike
the numerous other
standards prescribed by the
BIS. Though the government
has said QCOs have been
imposed to ensure the
quality of products,
protection of human,
animal, and plant health,
and prevention of deceptive
practices, the domestic
industry speaks of the
burden the measures entail.
They also lead to
confrontations with trading
partners at the World Trade
Organisation (WTO).
For the domestic
industry, which has to
adhere to the specified
quality standards, QCOs
almost always lead to higher
production costs. Trade
partners, on the other hand,
see them as another trade
barrier.
QCOs are covered under
the Technical Barriers to
Trade (TBT) agreement at
the WTO, which aims to
ensure that technical
regulations, standards, and
conformity assessment
procedures are non-
discriminatory and do not
create unnecessary obstacles
to trade.
At the same time, the
agreement recognises WTO
members' right to
implement measures to
achieve legitimate policy
objectives. The TBT
Agreement strongly
encourages members to base
their measures on
international standards to
create a predictable trading
as a trade barrier to curb
imports from countries such
as India, and it seeks to play
catch-up.
Partners’ concern
In 2023, India stood in the
eighth position for
submitting notifications
under the TBT agreement to
the WTO. The European
Union and India are the top
two respondents to concerns
by members on standards,
testing, and certification at
the Committee on TBT.
Countries including the
United States, Canada, and
Taiwan in a joint statement
For the domestic
industry, which has
to adhere to the
specified quality
standards, QCOs
almost always lead
to higher
production costs.
Trade partners, on
the other hand, see
them as another
trade barrier
last year raised concerns
over India’s QCOs over the
years in sectors such as toys,
chemicals, ICT (information
and communication
technology) products, and
automobile parts. On the
recognition of
internationally accredited
laboratories, the countries
asked India to provide
greater clarity and
transparency regarding the
steps laboratories can take to
obtain such recognition
from the BIS.
“Currently, exporters
whose products have already
been certified by accredited
international laboratories
report that results from these
laboratories are not being
accepted as proof of
compliance. As a result,
exporters are forced to
undertake duplicative
testing. We urge India to
utilise the benefits of ILAC
(International Laboratory
Accreditation Cooperation)
membership and accept
they said.
India, in response, said it
had used accreditation by
ILAC as a conformity
assessment procedure where
appropriate. The country
further confronted the
countries on whether all
ILAC-accredited foreign labs
were automatically
recognised by them and
whether the recognition of
ILAC-accredited foreign labs
was limited to certain sectors
or products.
The longest-standing
TBT-related concern raised
in 2023 at the WTO was on
India’s QCO on pneumatic
tyres and tubes for
automotive vehicles, which
dates back to 2005.
Domestic industry’s
view
Though a majority of the
domestic industry has hailed
the government’s mantra of
quality being non-
negotiable, many believe
QCOs should be
implemented in a more
industry-friendly manner
after wider stakeholder
consultation.
The domestic industry
also complains that a lack of
coordination between
government agencies creates
confusion about a QCO's
implementation. For
example, for the QCO on toys
for children up to 14 years,
the customs department
came up with a notification
that it will also be applicable
on parts and components,
and not just the finished
product.
In the case of QCO on
protective textile that
prevents ignition on office
chairs (yes, there is such a
thing), a QCO was used to
stall imports of not just the
raw material but also
furniture with protective
textiles.
“For the QCO on nuts and
bolts, the authorities have
clearly mentioned that if the
nuts and bolts are part of a
machine, then the order will
not be applicable on it. But
since such clarity is not there
in most QCOs, companies
seek clarification but there is
Identifying BIS-approved
laboratories and receiving
approval is a time-
consuming process,” he
adds.
Lack of planning could
lead to business disruptions,
as the products cannot be
imported or manufactured
without the BIS licence.
According to Garodia, “A
sudden imposition of QCOs
on the user industry can lead
to disruption of production
of the final goods of the
MSME players and thereby
add to inflationary
conditions. QCOs should
safeguard quality in the
country but should not be
used as a protective measure
for the manufacturers of
those products.”
Sahai of FIEO points out
that implementation may
take time since developing
the standards for all the
products will take time. This
was raised by
representatives from the
plastics industry in one of
the exporters’ meetings with
trade minister Piyush Goyal
last month.
Some small
manufacturers say it is far
easier for large companies to
deal with QCO-related
compliances.
H P Kumar, advisor at the
PHD Chamber of Commerce
and Industry (PHDCCI), says
QCOs are a step in the right
direction. However, he adds:
“One of the challenges is the
limited testing
infrastructure in our
country. Large corporations
are able to manage testing
within their own facility or
by making investments in
testing facilities. Even if they
don't have a testing
infrastructure, they are
capable of paying high
testing fees.”
PHDCCI has made
representations to the
government on this issue.
Tilting the fulcrum
A senior government official
says QCOs are good for the
country and tilt the fulcrum
in favour of domestic
manufacturers. Challenges
of implementation arise
16
>
Suffering from lifestyle
diseases? It’s in the gut
Findings based on research conducted by microbiome-based company
Leucine Rich Bio using its flagship technology BugSpeaks
SOHINI DAS
Mumbai, 17 April
W
ith lifestyle diseases on the rise
across the globe, nourishing
the gut can go a long way in
preventing chronic illnesses like dia-
betes and hypertension, a first of its kind
clinical trial in India has revealed.
The research was conducted by
microbiome-based company Leucine
Rich Bio situated in Bangalore using its
flagship technology BugSpeaks, a gut
microbiome profiling test that provides
nutritional recommendations based on
an individual's gut microbiota profile.
The human microbiome or basically
trillions of microorganisms in the body
plays a crucial role in maintaining
health, digestion and immunity and reg-
ulating the central nervous system.
India is widely considered as the dia-
betes capital of the world, housing more
than 101 mn people with diabetes. It is
in the recent years witnessing
a strong growth in the sale of anti-dia-
betic medicine.
The trial included 30 adults in the
age group of 42-65, both male and
female, with hyperglycemia (high blood
sugar) and hyperlipidaemia (high cho-
lesterol). The patients were divided into
two groups, one received the
BugSpeaks-based personalised diet,
while the other a regular diet for
3 months.
Those who were given personalised
diet showed improvement across various
parameters when examined on Day 90
of the study, claimed Debojyoti Dhar, Co-
Founder & Director (Business
Development and Innovation), Leucine
Rich Bio, and the lead author of the study.
Their average HbA1c levels (average
blood glucose levels for the last two to
three months) were brought down from
8.30 to 6.67; systolic blood pressure was
reduced by 14 per cent, and C-reactive
protein (an inflammation marker) was
decreased by 20 per cent. The study is
undergoing peer review in an interna-
tional scientific journal.
“In this study, we have highlighted
the positive effect of gut microbiota
based personalised nutrition on hyper-
glycaemia, hypertension, and inflam-
mation markers. This
‘proof of concept’ clini-
cal trial shows that
BugSpeaks-based nutri-
tional modulation of the
gut microbiota can
impact health positively
and can supplement
medication for diseases
like type-2 diabetes,”
Dhar told Business
Standard.
“We plan to conduct
more such trials in the
coming months for oth-
er diseases for which we
have anecdotal evi-
dence. Gut microbiota
modulation through
nutrition can provide a
new dimension in the
precision or person-
alised healthcare para-
digm and this study is a step towards ~5,000-6,000 per test in the next one to
that direction,” he adds.
The study also found that the number
of beneficial microorganisms year, Leucine is now doing 500-700 tests
(Phascolarctobacterium succinatutens, per month. From a turnover of ~1.2 crore
Bifidobacterium angulatum,
Levilactobacillus brevis), increased two- crore turnover. South Asia’s first micro-
fold and a similar decrease was observed biome company, Leucine Rich Bio start-
in non-beneficial species (Alistipes fine- ed in August 2014 with an aim to provide
goldii and Sutterella faecalis).
NEW DELHI | THURSDAY, 18 APRIL 2024 1
A Legacy of Success: Amit Patni's
ADVERTORIAL
Journey in Family Business
In Conversation with Amit Patni on navigating family
business challenges and seizing opportunities.
Our journey to a billion dollar scale was propelled by
strategic investments, global expansion, and a
relentless pursuit of excellence. Partnering with private
equity investors injected the necessary capital for global
expansion, culminating in our IPO success. Through
acquisitions and a focus on talent development, we
propelled Patni into a billion-dollar enterprise, marking a
significant milestone in our entrepreneurial saga. Our
emphasis on customer-centric solutions and
operational efficiency also played a pivotal role in our
success trajectory.
As Indian family businesses evolve, what are your
insights on the changing dynamics and their role in
shaping the economy of the new India?
The landscape of Indian family businesses is evolving
rapidly, with a focus on diversification,
professionalization, and global competitiveness. By
integrating vertically and horizontally, these businesses
are driving job creation, fostering talent development,
and contributing to India's economic growth. As they
Amit Patni, Director, Campden Family Connect & embrace modern governance practices and sustainable
RAAY Global Investments initiatives, they are poised to become key players in
Maintaining the bal- shaping India's future economic narrative. Their agility
Health check ance of gut microbiota is and adaptability in the face of changing market
C
ould you share some key moments from
The test BugSpeaks important as an imbal- dynamics are instrumental in driving innovation and
your journey within Patni Computers, tracing
profiles microbes ance, also known as dys- fostering a vibrant entrepreneurial ecosystem.
your evolution within the family business?
using stool as a sample biosis, can cause or
and gives a snapshot of aggravate different dis- Our family's journey is deeply rooted in Reflecting on your journey, what advice would you
one’s gut health apply- eases, including but not entrepreneurship. It began with my grandfather's offer to budding entrepreneurs navigating the
ing a score called the limited to digestive ventures in trading, which eventually led us to the complexities of the business world?
Rych index and tells if problems such as inception of Patni Computers. In the 1970s, we
there are chances of inflammatory bowel embarked on a pioneering mission to train Indian My advice to budding entrepreneurs is to prioritize value
contracting 15 dis- syndrome, mental engineers and provide IT solutions to global markets. creation over valuation. Rather than chasing funds,
eases, including type-2 health issues like anxi- Through decades of innovation, from mainframes to focus on building a robust business model and
diabetes or obesity. It ety and depression, and networking, we shaped Patni Computers into a delivering products or services that resonate with the
also suggests probi- menstrual problems. powerhouse of IT consulting, consistently adapting to market. Embrace a culture of responsible
otics and prebiotics The profiling test emerging technologies and market demands. entrepreneurship, anchored in ethical practices and
based on one’s gut bac- costs around ~10,000. long-term vision. Engage actively in peer-to-peer
teria and gives person- Dhar says that the price The early 2000s saw a rapid change and growth in business networking communities to garner valuable
alised food of the test has come Indian IT industry. How did you ensure Patni insights, exchange best practices, and stay abreast of
recommendations down from the initial Computers strive during this time, what were the industry trends. One of Patni family’s initiative –
based on specific cost of ~35,000 and the challenges and how did you manage them? ‘Campden Family Connect’, offers a unique opportunity
gut bacteria. company is further to tap into the collective wisdom of UHNW
planning to bring the The turn of the millennium brought forth both challenges
and opportunities. Leveraging our established multigenerational business families. With over 1400
prices down to members globally Campden provides local and global
infrastructure and talent pool, we capitalized on the
burgeoning Indian IT industry. By securing anchor networking opportunities, knowledge forums,
two years.
clients and expanding our service offerings, we pioneering research reports and education to business
From 150-200 tests per month last
families. Our upcoming "Indian Families in Business
navigated through the industry's rapid evolution,
ensuring sustained growth and profitability. Challenges Forum" on April 30th will provide business families with
and in FY23, Leucine ended FY24 with ~2.5 such as talent retention and competition were mitigated the practical tools and insights needed to not just
through robust HR policies and a focus on continuous survive but thrive in the years ahead.
innovation.
data-based solutions in oncology. Achieving a billion-dollar scale in business is a rare
Membership | Events | Research| Education | IPI
A Patni Family & Campden alliance
accomplishment. What strategies did you employ THE 9TH INDIAN FAMILIES IN BUSINESS FORUM
to reach this significant milestone? Mumbai | 30th April 2024
To know more info@campdenfamilyconnect.com