THURSDAY, 2 MAY 2024

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

HYDERABAD
~13.00
VOLUME XXIV NUMBER 32

WORLD P8 BACK PAGE P16

PAKTO BLOCK MOBILE SIM CARDS OF IMD PREDICTS MORE HEATWAVE DAYS
OVER HALF A MILLION TAX DEFAULTERS IN NORTHERN PLAINS, CENTRAL INDIA
P U BL IS H ED S IM U LT A NE O U S LY FR O M AHM E DA B A D , B E N G A L U RU , B H O P A L , B HU B A N E S WAR , C HAND I G ARH, C HENNA I , H YD ER ABA D, K OCH I , K O LK AT A, L UCK NO W , M U M B AI , NE W DE L HI A N D P U N E

BSE NOW CORNERS A

FIFTH OF DERIVATIVES At ~2.1 trn, gross New-gen leaders to take the
MARKET SHARE
BSE (formerly Bombay Stock Exchange) has
seen its market share go past the critical 20
GST collections in reins as Godrej group splits
per cent mark in the derivative segment,
TRANSFER OF THE BATON

Apr highest ever

intensifying its battle with bigger rival — the DEV CHATTERJEE
National Stock Exchange (NSE) — which, less Mumbai, 1 May
than a year ago, had a monopoly in this
space. In April, the average daily trading The Godrej family, which
volume (ADTV) for BSE stood at ~89 trillion, on Tuesday split its empire
accounting for 20.6 per cent of the overall into two groups — Godrej
ADTV of ~432 trillion. 10 > Industries Group and
Net mopup rises 15.5% on strong domestic activity Godrej Enterprises Group
— has made its succession
COMPANIES P3
Top 6 car brands accounted
INDIVJAL DHASMANA
New Delhi, 1 May ROBUST planning clear.
While 43-year-old
for 92.6% of sales in FY24 SHOWING Pirojsha Godrej, son of

F
or the first time, gross goods and patriarch Adi Godrej, is set
The Indian car market saw an increased services tax (GST) collection (prior GST collections to take over as chairman of
consolidation in FY24, with the top six brands to refunds) crossed the ~2 trillion before refunds the Godrej Industries
accounting for 92.6 per cent of domestic mark, reaching a record ~2.1 trillion
(~ trillion) Group from 2026, Nyrika
sales, while the bottom six could manage to in April. This represented year-on-year Holkar, the 42-year-old
garner a mere 2.9 per cent of the $4.2 million (Y-o-Y) growth of 12.4 per cent. daughter of Smita Godrej (From left) Adi Godrej’s son Pirojsha will be chairman of Godrej Industries Group from
market. The increase in market share was Net GST receipts (after refunds) rose
April FY25 Crishna, has emerged as the 2026. While Jamshyd Godrej will be the CMD of Godrej Enterprises Group, his niece
led by Mahindra & Mahindra, Toyota, and
Maruti Suzuki.
15.5 per cent Y-o-Y to ~1.92 trillion in April,
the finance ministry said in a statement on 2.1 face of Godrej Enterprises Nyrika Holkar will be executive director
Group.
Wednesday. Comparable data of net GST Y-o-Y Nadir Godrej will be the EACHFAMILYMAYSELLTHESHARESITHOLDSPERSONALLYAND/ORVIA
mopup is available for only two more growth in % chairperson of Godrej
TRUSTSTOTHEOTHERFAMILYINTAX-NEUTRALTRANSACTIONS
12.4
COMPANIES P3 months — February and March — both of Industries Group (GIG),
DGCA deregisters all Go First which showed much lower revenues than
in April.
comprising listed com-
panies like flagship Godrej
planes after Delhi HC order GST collections are typically the highest FY24 Y-o-Y growth in % Industries, Godrej Adi/Nadir family son of Godrej Properties.
PAGE 2
The Directorate General of Civil Aviation in April for any financial year. It will be April 1.87 12 Consumer Products, Godrej announced an open offer The next generation of
(DGCA) has deregistered all 54 aircraft leased interesting to see how many more months May 1.57 11.35 Properties, Godrej Agrovet, for Astec Lifesciences on the multi-billionaire fam-
to the bankrupt airline Go First, following the will clock more than ~2 trillion in gross GST June 1.61 11.72 and Astec Lifesciences, as Wednesday. Pursuant to the ilies also joined the group Adi/Nadir
Delhi High Court order issued on April 26,
officials said on Wednesday. With this move,
collection in the current financial year.
The surge in GST collection was prima-
July 1.65 10.74 well as Godrej Seeds and realignment under the across various companies
Genetics, Innovia family settlement agree- and took key leadership
familymakes
the lessors now have the opportunity to rily driven by domestic activities, revenue August 1.59 10.42 Multiventures, and ment (FSA), the positions, with Adi Godrej’s openoffer
reclaim their aircraft. from which increased 13.4 per cent Y-o-Y September 1.63 10.13 all their management and daughter Nisaba Godrej
in April. Meanwhile, GST via imports rose October 1.72 13.16 subsidiaries and EDIT P9 > control of com- running Godrej Consumer forAstec
by 8.3 per cent. However, the integrated November 1.68 15.07 joint ventures. PRESERVING panies under the Products as its executive TheAdi/NadirGodrej
GST (IGST) on imports saw a moderate December 1.65 10.3 Pirojsha, who A BRAND GIG group will go to chairperson. Tanya family,alongwithother
decline of around 2 per cent, falling to will be executive the ABG/NBG Dubash, Adi’s elder daugh- familymembers/trusts,has
~37,826 crore in April, compared to ~38,593
January 1.74 10.5 vice-chairperson, family. ter (also the eldest child), is madeanopenoffertothe
crore a year ago. The cess on imports February 1.68 12.54 will succeed Nadir as chair- At present, Pirojsha is the executive director of shareholdersofAstec
fetched 2.4 per cent higher revenue, at March 1.78 11.5 person in August 2026, the executive chairperson Godrej Industries, the flag- Lifesciencestoacquirean
~1,008 crore versus ~984 crore a year ago. according to the statement of Godrej Properties, Godrej ship of the Adi/Nadir additional26percentfrom
The Union government settled ~50,307 GST issued by the Godrej group Housing Finance, and family. She is also the thepublicaspartofthe
crore to central GST (CGST) and ~41,600 on Tuesday. Godrej Fund Management, group’s chief brand officer. familysettlement
crore to state GST (SGST) from the IGST collections The Adi/Nadir family and a non-executive direc- On the other hand, agreement,accordingto
collected. Union Finance Minister Nirmala after refunds (ABG/NBG family) will buy tor of Godrej Consumer Godrej Enterprises Group, anannouncementtothe
CHAMPIONS OF Sitharaman revealed that the total (~ trillion) out the shares held in the Products and Godrej owned by Jamshyd Godrej stockexchanges.
settlement of ~91,907 crore was ~4,413 crore five listed companies by the Agrovet. Having graduated and his sister Smita Godrej
INVESTOR TRUST more than the actual IGST collections of 1.51 1.65 1.92 Jamshyd/Smita family from the Wharton School of Crishna, will now be
Aspecialpageon10stocksthatwill ~87,494 crore. Turn to Page 6 > (JNG/SVC family). Each Business in 2002, Pirojsha controlled by Jamshyd as AMICABLE SPLIT MAY
getinstitutionalsealofapproval is Feb FY24 Mar FY24 Apr FY25 PREVENT WEALTH
family would sell the shares joined Godrej Properties in its chairperson and manag-
beingcarriedonpage14
AFTER MARCH PEAK, UPI they hold personally and/or 2004, and was appointed ing director, Nyrika Holkar DESTRUCTION
PAYMENTS DIP IN APRIL PAGE 6 Y-o-Y 13.6 18.4 15.5 via trusts to the other the chief executive of the as executive director, and GODREJ FAMILY
growth in % family, and these transac- real estate development their immediate family SETTLEMENT MAY NOT
COMPANIES P3 DOMESTIC PV SALES UP 1.76% tions would be tax-neutral, firm in 2012. In 2017, he members. ATTRACT TAX: LAWYERS
Like Suzuki, Kubota aims to AMID HIGH BASE, POLLS PAGE 3 Note: Figures are rounded off Source: Finance Ministry said a source. The became executive chairper- Turn to Page 2 >

make India its global hub

Japanese agri-equipment firm Kubota is

Mubadala, Warburg in talks SFBs may move

learnt to be taking cues from Suzuki Motor's PAGE 4
strategy to establish India as its global
production hub. The acquisition in 2022,
InBengal’s
binarybattle,
for Shriram Housing Finance RBI for clarity
leading to the rebranding as Escorts Kubota,
offered Kubota a crucial foothold in the
Indian and global markets.
CPI(M)fields
theyoung, BATTLEGROUND

BACK PAGE P16 SHINE JACOB & DEV CHATTERJEE

deploysAI
2024
on loan book
G7 coal phaseout move may DEAL IN THE 84.82%
>Shriram Finance owns From fielding young and

diversification
Chennai/Mumbai, 1 May
in the new candidates to catchy
influence COP29, G20 talks UAE-based sovereign fund Mubadala PIPELINE housing finance unit parody songs and using
The Group of Seven (G7) developed Investment Company and Warburg AI, the CPI(M) in West
economies, in the meeting of its Climate, Pincus are in talks with Shriram >Private equity >Deal likely to be >Bain Bengal is wooing young MANOJIT SAHA
Energy, and Environment Ministerial, has Finance to acquire a controlling stake major Valiant Capital worth between Capital is voters as it strives to Mumbai, 1 May
decided to phase out unabated coal during in its subsidiary Shriram Housing Management holds also in the make its presence felt
the first half of the 2030s. This decision sets Finance (SHFL). the majority of the ~5,300 cr race in the binary battle between the TMC Small finance banks (SFBs) are likely to seek
the tone for the global dialogues on energy Shriram Finance on Tuesday con- remaining stake and ~6,500 cr and the BJP. ISHITA AYAN DUTT writes clarification from the Reserve Bank of India (RBI) on
transition at COP29 in Baku and the Group of firmed it was looking to unlock value loan portfolio diversification, as the regulator has not
Twenty (G20) in Brazil later this year. in the housing finance arm to secure Fromthediamondhub: specified the extent of diversification that should be
growth capital. While Warburg did not comment Chief Executive Officer said: “The seen as desirable.
“We are in discussions to secure on Business Standard queries, past three years, with a CAGR of 56 Storyofwarandpeace In the recent glide path provided by the RBI for
Vedanta group planning growth capital for Shriram Finance. Mubadala did not respond. per cent, we are consistently expand- The diamond industry is not looking for the voluntary transition of SFBs to universal banks,
to invest $20 bn in 4 yrs Nothing has been finalised.
Discussions are with multiple inves-
The deal is likely to be between
~5,300 crore and ~6,500 crore, accord-
ing in newer territories and have the
adequate capital buffer to drive busi-
anything from the elections, says Hari
Krishna Exports Chairman Savji Dhanji
the regulator said “eligible SFBs having diversified
loan portfolios will be preferred”.
The Vedanta group is eyeing an investment tors,” the company told Business ing to the reports. Shriram Finance ness growth.” Dholakia. But not everyone in the Currently, there are 11 SFBs, following the merger
of $20 billion across all its businesses in India Standard in response to a question owns 84.82 per cent in SHFL, while Subramanian said the company industry is without expectations. of AU and Fincare earlier this year. Of these, two —
over the next four years, its Chairman Anil on whether it is in talks with private equity major Valiant Capital was optimistic about the growth NIVEDITA MOOKERJI finds out Unity and Shivalik — have not completed five years
Agarwal said on Wednesday. The investments Mubadala and Warburg. Management holds the majority of prospects as the demand for of operation, while NE SFB is not listed.
will be focused on technology, electronics, According to media reports, the remaining stake. affordable housing would come from AMID RISING TIDE OF DEEPFAKES A satisfactory track record of performance for a
and glass businesses, apart from the other Bain Capital was also in the race for Shriram Housing Finance Ravi the rural and semi-urban markets. DURING POLLS, EXPERTS CALL minimum period of five years
activities the group is engaged in. the company. Subramanian Managing Director and Turn to Page 6 > FOR SPECIFIC LEGISLATION and being listed on a recog-
nised stock exchange are the The AU SFB
first two criteria mandated by board will
the regulator for conversion discuss future

India GCCs emerge as proof-of-concept hub for GenAI apps into a universal bank.
“The only area where they
have not been very specific,
and they may evaluate case
course of action
soon. It says the
focus is now on
integrating
ILLUSTRATION: BINAY SINHA
AYUSHMAN BARUAH catalyst in accelerating Siemens Healthineers is by case, is the diversification with Fincare
Bengaluru, 1 May THE INDIA GCC ADVANTAGE value creation. experimenting with GenAI in of loans,” said a top official

Multinationals are using FOR GENAI “While the initial focus

was on cost optimisation, we
both product and non-
product space building upon
from an SFB. “It is not clear
to what extent the regulator will prefer diversification
their India global capability > India’s engineering talent > Ideal business context, now see significant top-line its strong foundation with AI. while considering the application for converting into
centres (GCCs) as proof-of- has scaled itself to the rich tech talent at scale, potential as well. We are One pivotal initiative is a universal bank,” the person said.
concept (PoC) hubs for demands of the new AI-led intellectual property leveraging GenAI for the Healthineers GPT, an in- Of the 10 SFBs that were licensed in the first phase
generative artificial future, and Indian GCCs have information surfacing, house experiment that in 2015, eight were converted from microfinance
intelligence (GenAI)
ready access to niche skills > Adaptability to insight generation, ticket grants internal stakeholders institutions. As a result, most of them started with a
applications (apps) due to the evolving technological resolution, content creation, access to the capabilities of loan book that was predominantly composed of
availability of digital talent, >Deep understanding of trends — From focus on and employee/developer large language models. microloans, which are unsecured. Over the years, SFBs
ability to adapt to the business context and Cloud migration a few productivity. However, the The work done in research began to diversify their loan books as they started
technological changes, and expected outcomes, data years ago to areas such as true marvel lies in and development (R&D) in offering products, such as home loans, car loans, and
build scale. foundation, and the ability data engineering, translating these capabilities India extends to automating gold loans, which are secured loans. By doing so, the
According to ANSR’s to collaborate across analytics, and digital into scalable actions that documentation tasks within share of microloans declined.
latest report, GenAI and drive efficiencies at an the quality, regulatory, and “According to norms, all SFBs have to lend at least
multiple stakeholders capabilities
GCCs are forging a “powerful enterprise level. This is internal operations realms. 75 per cent to the priority sector. And 50 per cent of
alliance”. Companies are where India’s GCCs excel — By employing various GenAI the loans have to be below ~25 lakh. So their exposure
utilising GCCs as a “sandbox relevant domains. pool, strategic cost At AB InBev GCC India, providing the perfect solutions, Siemens is more in the priority sector. The other
environment” to develop India’s GCCs are poised to management, and growing the in-house tech unit of proving ground for Healthineers seeks to diversification is regarding secured and unsecured
PoCs that accelerate their become a global powerhouse national AI focus, said Vijoe Belgium-based alcoholic responsible GenAI streamline workflow, reduce loans. The RBI has been cautioning about the rapid
digital journey by for pioneering GenAI apps Mathew, global director of beverage (alcobev) company development and future manual effort, and mitigate growth of the unsecured loan book,” said another
leveraging GenAI across due to their unique talent analytics, AB InBev GCC. AB InBev, GenAI acts as a success,” Mathew said. error rates. Turn to Page 6 > senior industry official. Turn to Page 6 >
2 COMPANIES
>
HYDERABAD | THURSDAY, 2 MAY 2024

NGODREJ FAMILY SPLIT: WHO GETS WHATN

Adi-Nadir Godrej Industries to be main holding

company for Adi-Nadir Godrej family
Settlement
family’s open may not attract
tax: Lawyers
offer for Astec BHAVINI MISHRA
New Delhi, 1 May

The multi-billion-dollar amicable split of Godrej Group

Offer to acquire an additional 26% stake at Godrej Industries, a listed entity, Industries Group companies and family. According to Tuesday’s into two, between patriarch Adi Godrej/Nadir Godrej
will be the main holding company the Godrej & Boyce group closing prices, the value of Godrej family and his cousin Jamshyd Godrej/Smita Godrej
a price of ~1,069.75 per share of the Adi/ Nadir family. The companies. As per the settlement family’s stake is worth ~1.53 trillion Crishna family, may not attract tax, say lawyers.
unlisted Godrej & Boyce plan, all five listed companies will in the five listed companies, which The multi-billion-dollar Godrej family has decided
Manufacturing Company, the oldest now come under the Adi/Nadir have a combined market to amicably split Godrej Group, which spans from real
company of the Godrej group, will Godrej family while G&B will be capitalisation of ~2.44 trillion. estate to consumer products, into two groups by untan-
be the main company of the managed by Jamshyd Godrej BS REPORTER gling the cross-holdings held by the two family
Jamshyd Godrej and his sister Smita branches across group companies with a division of
Godrej Crishna family. Godrej businesses and assets between Adi/Nadir family and
Industries holds 64.9 per cent stake
in Godrej Agrovet, and 23.7 per cent
TRACKING THE FINANCIALS Jamshyd Godrej/Smita Godrej Crishna family.
Statements sent by the group’s listed companies to
(All figures in ~ crore)
stake in Godrej Consumer exchanges late on Tuesday said the pro- moters —
Products, and 47.3 per cent stake in Mcap* (~ cr) TTM net sales TTM net profit Networth Adi Godrej, Nadir Godrej,
Godrej Properties. Jamshyd Godrej, and Smita
The Godrej group listed entities Godrej Industries 32,344 16,885 672 8,224 Godrej Crishna, heads of the
are not party to the family Godrej Properties 73,641 3,256 666 9,459 respective family branches
settlement agreement or the brand — have sent a joint letter
& non-compete agreement and Godrej Agrovet 10,469 9,497 334 2,366 about a family settlement
have not undertaken any liability. Godrej Consumer 124,733 13,781 1,785 14,500 agreement (FSA) and a
The parties to the family settlement brand and non-compete
agreement and the brand & non- Astec Lifesciences 2,525 431 -51 395 agreement having been
compete agreement consist of the Godrej & Boyce 15,625 338 12,533 entered into amongst some
promoters and/or members of the members of the Godrej family.
promoter group and their Total 243,712 “With a transaction of this size and nature, the tax
immediate relatives of the Godrej *As on April 30; TTM: Trailing 12 months ended December 2023 implications can be quite significant and at times can
Source: Capitaline Compiled by BS Research Bureau
break the complete exercise despite all agreements.
However, the fact that this is a family settlement will

DEV CHATTERJEE the underlying transaction, the total

PROMOTER HOLDING IN KEY LISTED GROUP FIRMS come to the favour of Godrej Group,” said Ankit Jain,
partner, Ved Jain & Associates.
Mumbai, 1 May voting rights of the acquirers, along Godrej Agrovet Godrej Consumer Godrej Inds Godrej Properties He said the courts have held that the transfer of
with Anamudi, in GIL will rise to Stake Value Stake Value Stake Value Stake Value shares pursuant to a family settlement would not

T
he Adi/Nadir Godrej family, 64.66 per cent, gaining full (%) (~ cr) (%) (~ cr) (%) (~ cr) (%) (~ cr) attract any capital gains tax.
along with other family control of GIL, the open offer “The courts have held that members of a family
ABG Family 1.3 131.9 1.0 1,197.4 14.8 4,790.2 0.2 132.6
members/trusts, has made an announcement said. may, to maintain peace or to bring about harmony in
open offer to the shareholders of However, as both the acquirers NBG Family 1.4 141.3 1.0 1,197.4 14.9 4,816.1 0.2 132.6 the family, enter into such a family arrangement and if
Astec Lifesciences to acquire an (Adi/Nadir family) and the sellers JNG Family 2.2 226.1 0.9 1,172.5 12.7 4,091.5 1.4 1,060.4 the arrangement is bona fide, then no capital gains tax
additional 26 per cent stake from the (Jamshyd family) have been dis- will apply,” Jain said. A family settlement is defined as
public as part of the family settle- closed as promoters or part of the SVC Family 2.2 226.1 0.6 698.5 10.7 3,457.6 1.4 1,045.7 an arrangement between members of the family with
ment agreement (FSA), according to promoter group of GIL in its share- Godrej Industries 64.9 6,792.1 23.7 29,611.6 47.3 34,861.6 the intent to avoid disputes, settle rival claims, maintain
an announcement to the stock holding pattern disclosed to the stock Godrej & Boyce Mfg 7.3 9,142.9 3.8 2,820.4 peace, or to maintain the reputation of the family
exchanges on Wednesday. exchanges for more than three years, wherein the various constituents with rights in the
The offer, made at the price of the acquisition will be undertaken in Innovia Multiventures Pvt Ltd 2.7 1,973.6 business or property take a share in the assets owned
~1,069.75 per share, was triggered by compliance with the Securities and Godrej Seeds & Genetics 27.4 34,201.8 by the “family”.Pallav Pradyumn Narang, partner, CNK,
the Adi/Nadir family's plan to Exchange Board of India (Substantial said that from a tax perspective, a family arrangement
RKN Enterprises * 2.2 226.1 1.3 1,634.0 12.7 4,091.5 1.4 1,053.1
acquire a 20.84 per cent stake in Acquisition of Shares and is not considered a transfer and is therefore not subject
Godrej Industries Takeovers)/Sebi Arel Enterprise Llp & 1.39 4,091.5 to tax. However, Narang says that questions may arise
(GIL) from the ASTEC LIFESCIENCES (SAST) regulations. Anamudi Real Estates Llp under Section 56(2)(x) of the Income-Tax (I-T) Act
Jamshyd Thus, the TOTAL 74.0 7,743.8 63.2 78,856.2 67.1 25,338.4 58.5 43,080.0 which stipulates that the value of assets/property
(Price in ~)
Godrej/Smita Crishna announcement said, received without adequate consideration be taxed in
1,400 the acquisition of As on April 30
Godrej family, accord- * Rishad Kaikhushru Naoroji & Others (partners of RKN Enterprises); The fifth listed group company, Astec Lifesciences' market cap stood at ~2,525 crore as
the hands of the recipient.
ing to the FSA 1,287.7 shares, voting rights, on 30 April, 2024. The promoter stake of 66.8 per cent in Astec Lifesciences is valued at ~1,685 crore; There may be marginal difference (a couple of basis
announced on and control over GIL points) with actual promoter holdings, and hence value of promoter holdings Source: Company, Capitaline; Compiled by BS Research Bureau
1,200
Tuesday. 1,097.4 by the acquirers is
The open offer, if exempt from the
fully accepted, will
cost ~545 crore to the
Adi/Nadir family, the
announcement said.
1,000 requirement of mak-
ing an open offer as
per the Sebi (SAST)
800 regulations.
Amicable split may prevent wealth destruction
Rishad K Naoroji, Dec 29,’23 Apr 30,’24 Furthermore, GIL Stockpricesmayreactpositivelyaskeyoverhangisremoved TRACKING TIFFS and work to separate ownership
another member of holds 64.88 percent of from management,” said
the promoter group of Godrej the issued share capital of Godrej SAMIE MODAK & SUNDAR SETHURAMAN business growth getting Ahead of the announcement, Hikal:Dispute between Subramanian.
Industries, will retire from Anamudi Agrovet (GAVL), a listed entity. Mumbai, 1 May impacted on account of disputes shares of Godrej Industries had Baba Kalyani and sister Hetal Dalal, President at
Real Estates, a promoter entity, and Therefore, upon completion, the over family settlements. The way shot up close to 6 per cent, Astec Sugandha Hiremath over Institutional Investor Advisory
only the Adi Godrej family will con- underlying transaction will result in The amicable split of the 127- such a large and complex group Lifesciences had hit 5 per cent ownership issue of 34% stake Services (IiAS), a corporate gov-
tinue to be partners in Anamudi an indirect acquisition of the major- year-old Godrej group will ensure like Godrej has handled the own- upper circuit, while Godrej ernance firm, believes companies
Retirals. ity of the voting rights in and control that the shareholder value is not ership issue will be welcomed by Consumer Products, Godrej Kirloskar Industries: can learn from other’s
Anamudi holds a 0.57 per cent over GAVL by the acquirers. hit, governance and market the stock markets, they said. Properties and Godrej Agrovet Dispute between mistakes and also
stake in GIL, which will be controlled However, as both the acquirers experts said on Wednesday, while “Business families like the saw little change over their pre- brothers Sanjay, Rahul, empower their
by the Adi/Nadir Godrej family. and the sellers have been disclosed expressing hope that it could also Godrej group are increasingly vious day’s close. and Atul over independent
As a result of the FSA, the total as promoters or part of the promoter boost the stock prices of the five realising that an amicable settle- Experts said the Godrej settle- restructuring of directors.
voting rights of the Adi/Nadir family group of GAVL for more than three listed group firms. ment is better. Else, the wealth of ment ensures that minority family holdings “Corporate
and Anamudi in GIL will increase to years, the acquisition will be under- After years of negotiations, all shareholders gets destroyed. shareholders don’t come in the history in India
52.01 per cent. Godrej Industries, in taken in compliance with the Sebi Godrej family announced a Also, the new Sebi regulation on crosshairs of bitter family feud. Finolex Cables: is replete with
turn, holds a 64.88 per cent stake in (SAST) guidelines. “shareholding realignment” after disclosure of any family agree- Some of the recent examples of Dispute between family feuds
Godrej Agrovet (GAVL); a 23.7 per GAVL, in turn, holds a 64.75 per the market hours on Tuesday. ment is pushing families to have this is the dispute between cousins Prakash causing the down-
cent stake in Godrej Consumer cent stake in Astec Lifesciences, and Under the new arrangement, simple structures,” said Shriram Baba Kalyani and sister Chhabria and Deepak fall of companies.
Products, and a 47.3 per cent stake in upon completion, the underlying Jamshyd Godrej, along with his Subramanian, Founder and Sugandha Hiremath over owner- Chhabria over control of Learning from history
Godrej Properties. transaction will result in an indirect niece Nyrika Holkar and their Managing Director, InGovern ship of Hikal. the firm and avoiding these mistakes is
As a separate and distinct trans- acquisition of the majority stake in families, will oversee the unlisted Research Services. Shares of Hikal are up just 2 critical for boards. Independent
action from the family settlement, Astec. While GAVL is disclosed as a Godrej Enterprises Group (GEG), “Overall, how this has been per cent in the past one year even Godfrey Phillips: Family directors must ask whether the
and with the aim of further consoli- promoter of Astec Lifesciences, the encompassing Godrej & Boyce handled shows dignity in the as the Nifty Smallcap 100 index feud involving Lalit Modi and board needs to get embroiled with
dating their shareholding in GIL, the acquirers and the sellers (Jamshyd and its affiliates. whole process. Unlike other busi- has rallied 75 per cent. mother Bina Modi, after intra-promoter group disputes.
Adi/Nadir family intends to acquire family) have not been explicitly dis- Nadir Godrej and Adi Godrej, ness families, there is no acri- Another example of family demise of KK Modi While it is impossible for the dis-
a 12.65 per cent stake in GIL from closed as promoters or part of the along with their immediate fam- mony. Post this, the focus of feud cited by experts was the bat- putes not to be taken to the board,
RKN Enterprises, another member promoter group of Astec Lifesciences ilies, will control the Godrej each of the subgroups will tle between the three Kirloskar Raymond: Feud between it is the independent directors’
of the promoter group of GIL. in its shareholding pattern disclosed Industries Group (GIG), which be much sharper,” said brothers which led to a lot of father and son Vijaypat responsibility to protect the com-
Consequently, the total voting rights to the stock exchanges for more than houses listed firms such as Amabareesh Baliga, independent charges and counter-charges and Gautam Singhania pany from such battles. If not, the
of the Adi/Nadir family and three years. Godrej Industries, Godrej equity analyst. before market regulator Sebi company will be dragged into
Anamudi in GIL may further Hence, an exemption in line with Consumer Products, Godrej Market experts believe the intervened; feud between the endless litigation and the man-
increase to 64.66 per cent, the Sebi takeover rules may not be avail- Properties, Godrej Agrovet and five Godrej group stocks could cousins Prakash Chhabria and sion plan to ensure business agement will remain distracted.
announcement said. able, and therefore, this open offer is Astec Lifesciences. react positively to the family set- Deepak Chhabria of the continuity. None of this is in the interest of
The Adi/Nadir family’s stake in being made in accordance with the Experts said there are several tlement when market opens Finolex group. “Business families also need the larger set of stakeholders,” she
GIL prior to the transaction was 30.61 Sebi (SAST) regulations, the state- recent examples of shareholders’ on Thursday as a key overhang Governance experts urge to think of how the next genera- wrote in a blog on promoter
per cent, and after the completion of ment said. wealth getting destroyed and is removed. India Inc to chalk out a succes- tions will benefit from the wealth family feuds.

> FROM PAGE 1 Splitdealpavesthewayforbrandusage,non-competeagreement

Holkar, who graduated from
Colorado College in the US and
later obtained law degrees from
University College London, UK,
joined the board of Godrej & Boyce
Manufacturing Company in
April 2017.
Freyan Crishna Bieri, daughter
of Smita Godrej Crishna, is a non-
executive director of Godrej &
Boyce. Likewise, Navroze Godrej,
son of Jamshyd, is a non-executive
director of the unlisted
company with large tracts of land
in Mumbai.
Pursuant to the FSA, the
management and control of
Godrej & Boyce, Godrej Holdings
Private Limited and Godrej
Infotech, along with their
respective subsidiaries and joint
ventures, and RKNE Enterprises,
will be with the JNG/SVC family.
Godrej & Boyce’s assets include
3,400 acres of land in Vikhroli (a
suburb in the northeastern part of
Mumbai). Of this, while about
1,000 acres can be developed,
another 1,750 acres have
mangroves and will not be
developed because of
environmental concerns, Adi
Godrej had said in 2011. Some 300
acres have been encroached upon.
One acre of land in Vikhroli,
said to a real estate analyst on
Tuesday, is priced at ~70 crore to
~80 crore. So, the value of the 1,000
acres would work out to ~70,000
crore to ~80,000 crore. Nadir might
retain a 2.5 per cent stake in Godrej
& Boyce for sentimental reasons,
considering that it is the oldest
group company, said a source.
The Godrej family had acquired
the Mumbai land parcel in early
1940s from the Bombay High
Court receiver. Originally given by
the East India Company in the
1830s to a Parsi merchant, Framjee
Banaji, it had come up for sale in
1941-42.
Godrej Properties, a listed
entity, is developing some of the
Godrej & Boyce land along with
other projects across Mumbai,
including the redevelopment of a
film studio of the late actor Raj
andanothercousinRishadGodrej
(72)—hadequalstakesinallgroup
companiesandassets.
Apart from a clear succession
planning and untangling of assets,
the Godrej FSA also paved the way
for brand usage and a non-
compete agreement. On the usage
of the Godrej brand, the ABG and
NBG family will have exclusive
rights to adopt, use, own and
register the ‘Godrej’ name and
brand in businesses like fast-
moving consumer goods
(including cosmetics, domestic
and cleaning supplies, sanitary
care, toiletries), foods & beverages,
Kapoor which the Godrej family dairy products & services,
now owns. financial services,
Beforethetransactionwas pharmaceuticals, pharmacy,
announcedonTuesday,thefive diagnostics, sexual wellness,
seniormembersoftheGodrej agriculture and agriculture-
family—Adi(82),hisbrotherNadir related services, fertilisers,
(73),theircousinJamshyd(75),his chemicals, oils & fats, etc.
sisterSmitaGodrejCrishna(74), The JNG/SVC family, on the
other hand, will have exclusive
rights to adopt, use, own and
register the ‘Godrej’ name and
brand in businesses like space,
aerospace, defence, furniture,
durables, heavy engineering, locks
and architectural hardware, EPC
services, construction materials,
home and office automation
services, home and commercial
interior design services, medical
devices, software solutions,
IT/ITeS, machines, energy, electric
mobility business, vending
machines, security products and
solutions, intra-logistics,
transmission systems, etc.
The two families have agreed to
a six-year non-compete agreement
and also on certain non-compete
protections for their existing and
exclusive businesses, which will
apply for six years from the
‘effective date’. After the non-
compete period, a family group
could enter into the exclusive
business of the other family group,
without the use of the ‘Godrej’
brand (including in their
corporate/entity names),
Tuesday’s statement said.
The effort of the settlement was
to minimise cross-shareholdings
between the two families across
group companies. Though some
small cross-holdings might
remain with family members of
the other group, the latter would be
treated as any other (public)
shareholders and not be classified
as promoters. Shares of the
company held by members of the
other group on or after the
‘effective date’ are not permitted to
be transferred to competitor(s)
identified under the FSA, except
either with the prior consent of the
heads of the ABG and NBG
families or through a non-
negotiated on-market sale.

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.
HYDERABAD | THURSDAY, 2 MAY 2024 COMPANIES 3 <

Domestic PV sales marginally FY24 DOMESTIC SALES CONSOLIDATION

Tightening grip: Top six

up amid high base, elections brands sold 92% cars
DEEPAK PATEL tions over the last few years,” he
New Delhi, 1 May STEADY RIDE stated.
However, he asserted that by
SURAJEET DAS GUPTA
HOW TOP SIX DOMESTIC BRANDS FARE

D
New Delhi, 1 May
omestic passenger the end of 2026 or by 2027, the 41.3 41.7
vehicle sales in April small car segment is expected to The Indian car market saw an
rose by only 1.76 per
DOMESTIC PV SALES IN APRIL bounce back, and sales will revive. increased consolidation in FY24, SHARE IN SALES (in %)
1,37,320

1,37,952

cent year-on-year (Y-o- n 2023 n 2024 He said, “The revival of two- with the top six brands accounting
nFY23 nFY24
Y) to 338,341 units, impacted by a wheeler sales is underway. for 92.6 per cent of domestic sales,
high base effect, the ongoing gen- Historically, when two-wheeler while the bottom six could man-
14.5 14.5 13.9 13.8
eral elections and low demand for sales revive, the small car seg- age to garner a mere 2.9 per cent 9.2 10.9
4.4 5.8 6.9 5.8
50,201
49,701

47,983
47,107
small cars. ment also experiences a revival of the $4.2 million market.
“We have started on a very with a lag.” The increase in market share
high base this year, considering was led by Mahindra & Mahindra, Maruti Hyundai Tata Toyota Kia M&M

18,700
Hyundai riding on SUVs

the industry numbers. Other
thing is that the country is going
through the election process. So,
there is a code of conduct. Till the
month of June, things (sales)
would be more or like this. After
June, you may see a revival in the
market,” said Partho Banerjee,
senior executive officer,
Marketing & Sales, Maruti Suzuki
India Limited (MSIL) at a press
conference.
The general elections are being
conducted in seven phases, with
counting scheduled for June 4. In
April 2024, MSIL’s domestic PV
sales saw a modest year-on-year
increase of just 0.5 per cent, total-
ling 137,952 units.
“This year, the growth is antic-
ipated to be modest, likely in the
single digits. However, we prefer
to refrain from making a forecast
for the entire year until after the
elections, as a new set of policies
may be issued thereafter,” noted
Banerjee.
MSIL growth matrix
Banerjee said that the industry’s
sport utility vehicle (SUV) sales
14,162
Hyundai Motor India (HMIL) wit-
nessed a 1 per cent Y-o-Y increase
in domestic sales, totalling 50,201
Maruti Hyundai Tata Toyota units in April this year.
Suzuki Motor India Motors Kirloskar Chief Operating Officer Tarun
Garg informed reporters that the
observed growth aligns with the
0.5 1.0 1.9 32.0 company’s expectations.
He highlighted a shift in sales
Y-o-Y increase/decrease (in %) dynamics, noting a decline in
Source: Companies hatchback sales. Garg emphasised
the company’s adaptation to this
trend through an optimised pro-
duction mix. “In 2022, SUVs
accounted for 53 per cent of our
sales. Last year, this figure rose to
60 per cent. Presently, it stands at
around 67 per cent. We align our
presence with customer
demands,” he said.
He emphasised that the hatch-
back segment remains signifi-
grew by 15 per cent in April 2024. have decreased further in April cant. “It’s just that customers are
Therefore, the share of SUVs in 2024. increasingly aspiring for more.
industry’s total PV sales jumped This segment is degrowing, Rural sales are surging, and even
to 53.6 per cent in April 2024 from dragging the growth of the indus- there, SUVs are preferred,” he
46.3 per cent in the corresponding try,” Banerjee mentioned. noted.
month last year. “Salaries have not increased The domestic PV sales of Tata
“The sales in the small car seg- sufficiently to match the rising Motors increased by 1.9 per cent
ment (hatchbacks and sedans) prices of small cars due to regula- Y-o-Y to 47,983 units in April 2024.
Toyota and Maruti Suzuki.
Based on data from the Society
of Indian Automobile
Manufacturers, in FY23 the share
of the top six was 90.2 per cent,
while the bottom six cornered 3.76
per cent of a $3.8 million market.
The top six auto brands are:
Maruti Suzuki, Hyundai, Tata
Motors, Toyota, Kia and Mahindra
& Mahindra. The bottom six are:
Volkswagen India, Skoda, Nissan,
Izusu, PCA Automobiles India
(part of Stellantis, which holds the
Citroen brand ) and FCA (Fiat
Chrysler Automobiles).
The impact of the consoli-
dation is evident from the fact that
as many as one- fourth of the car
companies could not garner even
1 per cent of the market share.
These are Izusu, Nissan, PCA and
FCA. Moreover, nine companies
have fallen short of the 5 per cent
market-share mark, which, many
auto analysts say, is needed to
have a viable business.
Many of the well-established
global car makers saw a substan-
tial drop in sales in the domestic
market. One key reason for that is
Suzuki Motors
Source: Based on SIAM data
the lack of new models.
For instance, Honda saw a sales
drop of over 5 per cent in FY24 and
touched a market share of just over
2 per cent. It is now pegging its
hopes on the launch of its SUV,
Elevate, in India in September last
year. Honda has been saddled with
ageing models like the Honda City,
which lost its market leadership.
Izusu, which had come to
India with a big bang, sold only
515 vehicles in FY24 — a drop of
more than 47 per cent over the
previous year. Analysts say that
the company’s problem has been
its expensive positioning and
delays in bringing new models.
And Nissan, which had earlier
talked about hitting a market
share of 5 per cent in 2020, went
in the negative in FY24, with sales
plummeting by 10 per cent, which
brought its market share down to
less than 1 per cent.
Volkswagen India has said
recently that it would be looking
at a 15 per cent growth in sales in
India in CY 2024. However in FY24
its domestic sales grew by only 4.5
per cent.
Volkswagen group company,
Skoda Auto India, has also mod-
erated its ambition in the country
and is now looking at a 5 per cent
market share by 2030. However,
its global CEO, Klaus Zellmer, has
said this year that India will play a
crucial role in its international
expansion. In FY24 its sales fell by
around 15 per cent in the Indian
market and its market share fell to
1.05 per cent.
Meanwhile, many of the com-
panies are pushing for exports to
make up for the low domestic
sales. For example, Volkswagen
India sold more cars abroad than
in India, with exports going up by
a substantial 62 per cent to hit over
44,000 vehicles in FY24. Renault
and Nissan are following the same
tack, though their exports have
fallen sharply this year.

DGCA deregisters all

54 Go First aircraft
DEEPAK PATEL & BHAVINI MISHRA tered most of the Go First aircraft after a long
New Delhi, 1 May battle”. However, he added, “While this is a
major victory for the lessors, the battle is not
The Directorate General of Civil Aviation over until the aircraft are exported out of the
(DGCA) has deregistered all 54 aircraft leased country.”
to the now-bankrupt airline Go First, accord- Nitin Sarin, managing partner at Sarin &
ing to officials. This move comes in the wake Co, which also represented lessors during the
of an order issued by the Delhi High Court on court cases, told Business Standard that the
April 26. DGCA’s action is "a very welcome step and
Go First filed for bankruptcy in May 2023. that, coupled with the excellent HC judgment,
Since then, the lessors of these aircraft will really help India redeem itself from the
have been locked in a fierce battle damage caused to the country's rep-
with the former owner of the air- The Delhi High utation by Go First.”
line, lenders, and the resolution Court on April 26 At an aviation event in February
professional to take control of their directed the this year, global aircraft and engine
aircraft. DGCA to lessors expressed deep frustration,
The Delhi High Court, on April deregister using terms such as “scarred”,
26, directed the DGCA to deregister planes leased “burnt”, “egregious”, and “yellow
planes leased to Go First within to Go First light of caution”, over their inability
five working days, providing within five to repossess their planes (and
much-needed relief to the lessors. working days engines) from Go First due to ongo-
With the civil aviation regulator ing court cases.
complying with the court order and deregis- Go First ceased flight operations on May 3,
tering the planes, the lessors now have the 2023, following the submission of an insol-
opportunity to reclaim their aircraft. So far, vency application to the National Company
the resolution professional of Go First has not Law Tribunal (NCLT).
contested the Delhi High Court order. On May 10, 2023, the tribunal imposed a
Ajay Kumar, managing partner at KLA moratorium on the airline’s assets, effectively
Legal, which represented various lessors dur- preventing the lessors from reclaiming
ing the ongoing court cases, told Business their aircraft (and engines on them) from the
Standard that the DGCA has “finally deregis- carrier.

LikeSuzuki,Kubotaaims
tomakeIndiaitsglobalhub
TRACTOR TRAIL
n Kubota bought nearly 10%
stake in Escorts for about 16
billion yen ($106 million at
current rates)
n It increased ownership
above 50% two years later
for roughly 140 billion yen
($887 million)
n Escorts Kubota India
recorded 70,327 units of
tractor sales in 2023. In 2022,
it was 72,185

ABHIJEET KUMAR
New Delhi, 1 May
Japanese agri-equipment firm
Kubota is taking cues from
Suzuki Motor's strategy to
establish India as its global
production hub, according to
a report by Nikkei Asia.
The acquisition of Escorts
in 2022, leading to the rebrand-
ing as Escorts Kubota, a prom-
inent tractor manufacturer in
India, which held the fourth-
largest global market share,
offered Kubota a crucial foot-
hold in the Indian and inter-
national markets, comple-
menting its strengths with
Escorts' established presence.
Katsunori Asano, head of
manufacturing at Escorts
Kubota, while giving a tour of
a factory in Haryana in
December, noted that local
staff have initiated continuous
improvement initiatives,
known as 'kaizen', within the
company, the report said.
Kubota, a prominent
Japanese tractor manufac-
turer, entered the Indian mar-
ket in 2008, but its growth
remained sluggish, and its
market share lingered in the
single digits. The company's
specialisation in lightweight
tractors initially hindered its
growth due to inadequate pul-
ling power for Indian applica-
tions. In India, where the
demand for tractors is sub-
stantial, accounting for half of
the country's demand at
900,000 units annually, these
machines serve various pur-
poses beyond farming, includ-
ing freight hauling.
The acquisition was facili-
tated by key figures such as RC
Bhargava, chairman of Maruti
Suzuki, who endorsed the
partnership between Kubota
and Escorts. Bhargava, draw-
ing parallels to Maruti Suzuki's
success story, emphasised the
importance of understanding
cultural differences and
embracing Escorts within
Kubota's management frame-
work, the Nikkei report said.
Bhargava, an independent
director at Escorts Kubota,
foresees the company's suc-
cess trajectory mirroring that
of Maruti Suzuki.
4 >
BATTLEGROUND 2024 HYDERABAD | THURSDAY, 2 MAY 2024 1
InTelangana,wherepollingison InAndhraPradesh,with25seatsthat

BATTLEGROUND 2024
May13,525candidatesare gotothepollsonMay13,454
contestingin17LokSabhaseats, candidatesareinthefray,
comparedto443candidatesin2019 comparedto319contestantsin2019

N EAR TO THE GROUND N

From the diamond hub in poll In Bengal’s binary

season: Story of war and peace
Have no demand from govt, says leading diamantaire Savji Dholakia
NIVEDITA MOOKERJI
Surat, 1 May
T
he diamond industry is not look-
ing for anything from the Lok
Sabha elections, says Savji Dhanji
Dholakia, 62, when asked about his
expectations from the next government.
The diamond business that he started
with his brothers more than 40 years
ago is among the most well-known not
just in Surat, the diamond capital of
India, but in many overseas markets.
Spread across acres of land complete
with a helipad, the Ichhapore campus
of Hari Krishna Exports, which manu-
factures and exports diamonds, is tough
to cover walking. Golf carts are lined up
to ferry employees and visitors (as in
this case). A large photograph of Prime
Minister Narendra Modi inaugurating
the facility in 2017 occupies the main
reception wall. Planning, cutting, and
polishing the rough diamond are dis-
tinct units for producing a finished gem.
Advanced tech machines, mostly
imported from the West, have changed
the game in this niche industry.
“You can set the machine for a task
and get on with other things,” explains
the guide pointing at a laser machine
to cut diamonds and then to a water jet.
Even so, diamond engineers and polish
artists, sitting in neat rows in large halls,
are most in demand here.
Dholakia, a Padma Shri recipient in
2022, is more focused on philanthropy
now, while the next generation is con-
centrating on the business which
employs around 6,000.
The ‘hira hub’ at Ichhapore, which
has many other players besides Hari
Krishna in the tree-lined boulevard on
the outskirts of Surat, is not to be con-
fused with the more recent Diamond
Bourse at Khajod, Surat. The bourse is
yet to see glitter, as an industry insider
put it.
People of Surat, which has a winner
in the BJP’s Mukesh Dalal ahead of the
N ALL IN A DAY N
Plea on virtual campaign
Producing a finished gem includes
planning, cutting, and polishing
2019 RESULTS
(vote share in %)
SURAT: 1,655,704 ELECTORS
n DARSHANA VIKRAM JARDOSH, BJP (74.41)
n ASHOK PATEL, Congress (23.14)
BARDOLI: 1,826,526 ELECTORS
n PARBHUBHAI VASAVA*, BJP (55)
nAMARSINHCHAUDHARI,Congress (39.03)
NAVSARI: 1,971,658 ELECTORS
n C R PATIL*, BJP (74.3)
Won with the highest margin
in the country
n DHARMESH PATEL, Congress (21.62)
*Incumbent MP Source: ECI
Lok Sabha elections, have turned to
Navasari and Bardoli, the two adjoining
constituencies and considered part of
Surat, for their election interests.
Whatever the local contest in
Gujarat, Dholakia is “110 per cent sure’’
that Modi will be back as PM. Dholakia’s
company exports a majority of its dia-
monds, mainly to the United States.
While he dismisses any major challenge
BJP hopes to taste Lok Sabha
Surat
Bardoli
Navsari
posed by lab-grown diamonds,
Dholakia admits that for two years,
exports to China have stopped. That’s
more to do with declining demand in
China than any geopolitical reasons, he
indicates. Russia-Ukraine war has dent-
ed the business, Dholakia says. Russia
used to be the main source of raw dia-
mond, but not anymore. Hari Krishna,
like many others, has turned to South
Africa for raw material. “But we should
take the ups and downs in business in
our stride,’’ he says laughing, and adds
that “diamond demand will be there as
long as people have money’’.
Are there any targets that he has set
for the business? “The opportunities are
huge. We have reached only 100 coun-
tries in 45 years of being in the diamond
business. We want to reach at least 125
this year.’’
According to industry and govern-
ment data, the US accounts for almost
50 per cent of the total diamond exports
from India. During the first nine
months of 2023-24, India’s total exports
of cut and polished diamonds were
around ~98,638 crore against ~1.32 tril-
lion a year ago.
Why is women participation so low
in the diamond industry? “That’s about
the mindset. Women in Gujarat are not
keen to enter this business for some rea-
son,’’ Dholakia replies.
Coming back to elections, doesn’t
the diamond industry want anything at
all from the
government?
“Neither is
there any sup-
port from the govern-
ment nor is there any
demand. The diamond
industry has not been disturbed
by the government, so it’s
okay,’’ Dholakia points out.
But not everyone in the diamond
industry is without expectations. For
instance, Dinesh Navadia, chairman of
the Indian Diamond Institute, lists out
three demands for the next govern-
ment. First, the government should per-
mit overseas miners to sell products
in India.
The government norms can be set
on the pattern followed by European
countries and Dubai, he suggests. Also,
he presses for an average turnover tax.
Finally, the government must keep its
word on relaxing the tax imposed
on businesses for the online sale
of diamond.
battle, CPI(M) fields
the young, deploys AI
WEST BENGAL DIMINISHING RETURNS
Maldaha Uttar Party-wise performance in West Bengal during
previous elections (42 seats)
n TMC n BJP n INC n CPI (M) n Others
Maldaha 2014: SEATS WON (vote share)
Dakshin Jangipur 4 (9.69%)
2 (17.02%)
34 2 (22.96%)
(39.79%)
Murshidabad 0 (10.54)
n Vote in 2019: SEATS WON (vote share)
Phase 3 18 2 (5.66%)
(May 7) (40.64%) 0 (6.34%)
22
(43.69%) 0 (3.67)
Source: ECI
KEY CPI (M) MOHAMMED SALIM,
Murshidabad (May 7)
DIPSITA DHAR,
Serampore (May 20)
CONTESTANTS SAIRA SHAH HALIM, SUJAN CHAKRABORTY,
(Voting on) Kolkata Dakshin (June 1) Dumdum (May 25)
ISHITA AYAN DUTT seven when it was set up just before the LS elec-
tion of 2014. And there are Left-leaning sympa-
Kolkata, 1 May
thisers in Big Tech companies who are lending
From fielding young and new candidates to the core group a helping hand. Launched about
catchy parody songs and using artificial intelli- a month ago, Lahiri said the response to
gence (AI), the Communist Party of India
(Marxist), or CPI(M), in West Bengal is wooing
‘Samata’ has been good — some of the bulletins
have got 500,000 views.
young voters as it strives to make its presence Mohammed Salim, CPI(M) West Bengal sec-
felt in the binary battle between the Trinamool retary, pointed out that the party always
Congress (TMC) and the Bharatiya Janata believed in low-cost, knowledge-based cam-
Party (BJP). paigns. Skits, songs, and wall graffiti have always
The CPI(M)-led Left Front that ruled West been part of the communist campaign.
Bengal for 34 years failed to bag a single seat in “We are reviving the old flavour with modern
the Lok Sabha (LS) poll in 2019 and the technology,” Salim said.
Assembly in 2021.
It’s now pinning hopes on a revival. AI, a double-edged sword?
The CPI(M) is contesting the LS election in The use of AI by the CPI(M) has drawn barbs
alliance with the Congress and other Left Front from Opposition parties like the BJP and TMC,
partners. Of the 42 LS seats in West Bengal, the pointing out that it was the party that opposed
Left Front is contesting in 30 constituencies, computerisation. The party, however, protests
the CPI(M) in 23; the Congress is contesting in the ‘stigmatisation’ and says that it had opposed
12 seats. the loss of jobs and not computerisation per se.
“We have fielded mostly new faces. There In the 1970s, banking and insurance employ-
are barely three who are above 60 years of age,”
said Samik Lahiri, a senior leader of the party.
ees had opposed the introduction of computers
to protect jobs, but the party supported it.
“We never opposed computerisation; we
Revamping outreach

success in SP family bastion

opposed sacking of employees,” clarified Lahiri.
Targeting the youth is an important factor the Political observer Sabyasachi Basu Ray
for arrested leaders junked CPI(M) has realised, and the party is resorting
to different tools towards that end.
Chaudhury, however, said in any period, the
traditional production system takes a beating
TheDelhiHighCourtonWednesdaydismissedapetition ARCHIS MOHAN In the run-up to the last Assembly election, with the introduction of new technology.
seekingtoallowarrestedpoliticalleaderstocampaign New Delhi, 1 May 2024 CONTENDERS the party had come up with a parody of the pop- “AI, which is being used by CPI(M), is also
throughvirtualmodefortheLokSabhapolls,terming ular song ‘Tumpa Sona’ — taking potshots at like a double-edged sword — it’s practically a
thepleaas“highlyadventurous”andagainstthe Samajwadi Party's (SP’s) Dimple Yadav won the the TMC and the BJP — for its all-important revolution. In another five to 10 years, its impact
fundamentalprinciplesoflaw.Itsaidthatitisfor Mainpuri Lok Sabha (LS) seat by nearly 290,000 votes rally at the iconic Brigade Parade Ground. on jobs will play out.”
Parliamenttodecideonsuchissues.“Wecan'tallow in a bypoll in 2022, after her father-in-law Mulayam And it went viral. The CPI(M) is well aware of the pros and
someonewhoisincustodytorunacampaign. Singh Yadav, who had won the seat in 2019, passed This time, what’s drawing attention is an AI- cons of AI.
Otherwise,allrapists,murdererswillstartfloating away. Five years back, Mainpuri was one of only five generated news presenter named ‘Samata’, “A razor can be used for shaving; it can also
politicalpartiesjustpriortotheelections,”itadded. PTI seats that the SP had won in Uttar Pradesh. The SP which means equality. The weekly news bul- be used to cut throats,” Lahiri pointed out. “We
has not lost the seat since 1996, the BJP has never letins are on the party’s Facebook and YouTube are just using the good side of AI to help us with
DIMPLE YADAV JAIVEER SINGH
won it, and the Congress, currently SP’s junior ally in channels; it’s also circulated in our work. And the information that we are
Mamata flags sudden UP, last won it in 1984.
The BJP, which won SP’s other two
SP (incumbent MP) BJP WhatsApp groups.
“We are fighting for equality —
putting out is completely based on facts.”
Basu Ray Chaudhury also cautioned that
rise in voter turnout strongholds in bypolls in 2022, Rampur
and Azamgarh, hopes to wrest Mainpuri,
UTTAR
PRADESH
2019 vote share
Mulayam
social and economic — which has
taken a beating in the past 10
those who engage on social media plat-
forms don’t ultimately go out and vote.
WestBengalChiefMinisterMamata too, which goes to polls on May 7. The Singh years. And hence, we have
BanerjeeonWednesdaycriticised party has fielded Uttar Pradesh Tourism Prem Singh Yadav: SP named it ‘Samata’,” said Lahiri, Eye on revival
theElectionCommissionforthe Minister and Mainpuri Sadar local legis- Shakya: BJP Others who is part of the core group The major drubbing for the CPI(M)
“delay”inreleasingthefinalvoter lator Jaiveer Singh. 2.33 that launched the project. came in the LS election of 2019
turnoutfiguresforthetwophasesof At an election rally on Sunday in 53.66 AI is being used to generate when the anti-TMC vote switched
thepolls.Shealsoexpressedconcern Mainpuri, Union Home Minister Amit Shah 44.01 content for news bulletins, to the BJP. The party vote
overthesuddenincreaseinpolling promised the electorate that he would ensure campaign material, etc. share in 2014 had stood at
percentagesduringthosephases. PTI Singh is entrusted with bigger responsibilities if In % “Other political parties 23 per cent which dropped
he were to win Mainpuri. “You make him win and we Mainpuri appoint public relations to 6.3 per cent in 2019.
will ensure that he becomes a big man,” Shah said.
Total electorate: 1,723,236 agencies; we can’t afford
EC bars KCR for 48 hours The highlight of Dimple’s 2024
fight is her daughter, Aditi Yadav,
it. It would have helped
to get the rendering
More on business-
standard.com
from campaigning canvassing for her mother. Unlike
in 2019, when tensions between SP
CONSTITUENCY
WATCH
2019, has fielded Shiv Prasad
Yadav. In the 2022 Assembly
done by professionals.
But that requires addi- Weekly news
TheElectionCommissiononWednesdayreprimanded chief Akhilesh Yadav and his uncle Mainpuri, UP polls, the BJP made inroads into tional resources,” bulletins by the
BRSpresidentKChandrashekarRaoandbarredhim Shivpal Singh Yadav were still rife, Mainpuri, a stronghold of the Lahiri said. party’s AI presenter
fromcampaigningfor48hoursforhis“objectionable” and the latter floated his own party, SP’s first family. Of Mainpuri LS’ The CPI(M) and its Samata (pictured)
remarksagainsttheCongress.TheECsaidhisremarksat the family has put forth a united front. five assembly segments, the SP won three, including volunteers have taken are posted on
apressconferenceSircillaonApril5wereviolativeofthe The entire family was present when Dimple filed Akhilesh winning Karhal and Shivpal winning it upon themselves to car- Facebook, YouTube
provisionsofthemodelcodeofconductandits her nomination. Her husband Akhilesh and his uncles Jaswant Nagar seats. ry the message. The core and circulated
advisories.TheEnglishtranscriptofhisstatement Shivpal and Ram Gopal Yadav accompanied her. The The BJP, meanwhile, won the Mainpuri and group for social media is in WhatsApp
showsheusedinvectivesagainsttheCongress. PTI Bahujan Samaj Party, which was an ally of the SP in Bhogaon assembly seats. about 15 to 16, up from six to groups

Amid rising tide of deepfakes during polls, experts call for specific legislation
RAGHAV AGGARWAL
New Delhi, 1 May
Evenasthelawenforcement
agenciesaregrapplingwiththe
risingtideofdeepfakesduringthe
ongoingnationalelections,legal
expertshavecalledforspecific
legislationtodealwiththe
menace.
Deepfakeswereneversoclose
toreality,thankstotheriseof
ArtificialIntelligence(AI).And
expertsbelievethatthis
technologyisjustinitsinfancy,as
theriseofAIwillopenthe
floodgates.
“AdvancementsinAIand
machinelearninghavemadeit
easierforanyoneproficientin
digitaltoolstocreateconvincing
deepfakecontent,”saidAkshay
Garkel,partnerofCyberandIT
RiskatGrantThorntonBharat.
Althoughprecisefiguresare
elusive,thereisaperceivedsurge
inelectoraldeepfakes.
Garkelnotedthatfakecontent
creationhasrisenacrossvarious
motivations,frompersonal
grudgestopoliticalsubterfuge.
PawanPrabhat,co-founderof
ShorthillsAI,underscoredtherole
ofemergingtechnologieslike
Sora,EMO,andVasa-1in
producing“convincing”
deepfakes.
“Thissurgeisespecially
evidentthisyearbecauseof
electionstakingplaceinmajor
democracieslikeIndiaandtheUS,
aswellasinothercountries
globally,”hesaid.
DespitetheMinistryof
AndonWednesday,apetition Rule3(2)(b)oftheactstates SantoshJinugu,partnerat
Revanthdidn’tpostdoctoredvideo:Lawyer wasfiledintheDelhiHighCourt,
seekinganurgenthearingagainst
thatsocialmediaplatformsmust
takedowncontentwhichislike
DeloitteIndia,said,“Establishing
regulationsarounddeepfakesin
TelanganaChiefMinisterARevanthReddy’slawyer thecirculationofdeepfakevideos impersonation,including Indiaiscrucialtosafeguarding
appearedbeforeDelhiPoliceonWednesday.He duringtheongoingelection. artificiallymorphedimagesofan individuals,businesses,and
assertedthatReddyhadnothingtodowithcreating ExistingIndianlawsoffersome individual,within24hoursofthe societalintegrityfromthe
orpostingthedoctoredvideoofAmitShah’sspeech. recourseagainstdeepfakes,with receiptofacomplaint. potentialharmsandmisusesof
Reddy,whowassummonedbytheDelhiPolicefor provisionsundertheITRules2021 However,legalexperts thistechnology.”
allegedlypostingthevideoonX,hitoutattheBJPata addressingdisseminationand advocateforaspecificlegislation Expertsalsosuggestedthat
rallyinTelangana,accusingPMModiandAmitShah impersonationonsocialmedia targetingthedeepfakecreation raisingpublicawarenessand
ofadoptingavengefulattitudeagainsthimfor platforms. ecosystemtoaddressitssocietal collaborationbetween
questioningtheBJP’sstandonreservations. PTI “Rules3(1)(b)(v)and3(1)(b)(vi) impactcomprehensively. governmentagencies,technology
imposeobligationson SomethingthattheUShasjust firms,andresearchinstitutionsis
intermediaries(suchassocial tabledandseveralothercountries imperativetotacklingthisissue.
ElectronicsandInformation launchedaprobeintothealleged mediaplatforms)toinformtheir aredrafting. Somealsoadvocatedself-
TechnologyissuinganAI-specific fakevideoofUnionHome userstonotdisseminate “Legislationstargetingthe verificationandrestraint.
advisoryearlierthisyear,concerns MinisterAmitShah,inwhichheis ‘misinformation’orcontentthatis deepfakecreationecosystemwill Prabhatsaidthateliminating
remainregardingthemisuseofAI purportedlyseenadvocating ‘patentlyfalseanduntrueor actasadeterrentwhileprovidinga thesevideoscompletelyis
toolstoswayvotersamongthe900 scrappingofreservationof misleading’orcontentwhich legalrecourseforvictims,thereby “tough”.“Butwecanbecareful
millioninternetusersinIndia. ScheduledCastes(SCs), ‘impersonatesanotherperson’,” enablingacomprehensive aboutwhatwebelieve.Itisbestto
OnSunday,theDelhiPolice ScheduledTribes(STs),andOther explainedRanjanaAdhikari, approachtocombatingtheissue,” trustnewsfrombig-reliable
hadregisteredanFIRand BackwardClasses(OBCs). partneratIndusLawsaid. Garkelsaid. sources.”
.
HYDERABAD | THURSDAY, 2 MAY 2024 5
<
6 ECONOMY & PUBLIC AFFAIRS
>
HYDERABAD | THURSDAY, 2 MAY 2024 1

ExamineCovishield
riskfactors:PleainSC
Export volume up 'Rejection of
govt plea in SC
won't affect
100 MILLION TARGET

Unorganised
seeksexpertpanel for 19 major items, sat spectrum
allocation' sectorpension
but value declines
ANJALI SINGH deaths and injuries, has

Mumbai,1May
A petition has been filed in the
Supreme Court seeking forma-
plansees5mn
acknowledged that its vaccine
can cause Thrombosis with SUBHAYAN CHAKRABORTY
Thrombocytopenia Syndrome New Delhi, 1 May
(TTS), a condition with blood

tion of a panel of medical
experts to study the Covishield
vaccine and examine its pos-
sible “side-effects”. The case
clots and low platelet count, in
rare cases.
The petition highlights the
case of Jamie Scott, a UK citi-
signupsin5yrs
The Supreme Court’s deci-
SHREYA NANDI sion to reject the govern-
ment’s application seeking
TRADE CONTRAST
NewDelhi,1May
clarification on spectrum

E
was filed against the backdrop zen who suffered a permanent xports of 19 major commodities, includ- Export data for Apr-Feb (2023-24) allocation for non-mobile
of UK’s pharmaceutical giant brain injury after receiving the ing petroleum products, coal and marine services won’t impact the SHIVA RAJORA
AstraZeneca admitting that its AstraZeneca vaccine. The law- items, saw growth in terms of volume % change Y-o-Y nVolume nValue allocation of satellite spec- NewDelhi,1May
Covid vaccine could cause suit filed by Scott and similar during April 2023-February 2024, even as they Petroleum products 15 trum as per the Telecom Bill,
blood clot-related side effects cases in the UK seek damages witnessed contraction in value terms during the -11 highly placed sources said. In The government’s flagship
“in very rare cases”. totalling up to £100 million. same period. Marine products 6 February 2012, the SC had pension scheme for unorgan-
-7
The petitioner, Vishal In light of these develop- Government officials said the rise in export 1 upheld that auctions were the ised sector workers —
Tiwari, argued that over 175 ments, the petition filed by volume despite a decline in value implies that Agro chemicals -23 preferred method for allocat- Pradhan Mantri Shram Yogi
crore doses of Covishield have Tiwari urges the Supreme these commodities show a stronger market 0 ing scarce public resources Maandhan (PMSYM) yojana
Plastic raw materials -12
been administered in India Court to establish a medical demand. The export value of these products like telecom spectrum. — saw just over 5 million sub-
Dyes 3
based on government assur- expert panel to investigate stood at $102.7 billion compared to the total -13 The Centre had filed a scribers since its inception in
ances of its safety. However, Covishield’s side effects and export value of $395.42 billion during the first 16 miscellaneous application in March 2019.
recent revelations in the UK risk factors. 11 months of financial year 2023-24 (FY24). Inorganic chemicals -7 the SC on December 12 last This has raised questions
raise concerns about potential It also called for a vaccine These commodities constitute over a fourth Plastic sheets, films, etc -5 11 year seeking clarification on on the viability and effective-
side effects. AstraZeneca, fac- damage payment system for of the export value for April-February, com- the matter of administrative ness of the scheme in provid-
ing a class-action lawsuit in the those severely disabled due to merce department data showed. Other misc. chemicals -3 1 allocation of spectrum. ing social security to millions
UK for alleged vaccine-related Covid-19 vaccination. “There are products where volumes (export) 8 On Wednesday, media of unorganised sector workers.
have increased as compared to last financial Castor oil -15 reports pointed out that the Data collected from the
year. This means that in terms of Tea 6 Supreme Court’s registrar Maandhan portal shows that Experts attribute the slow
quantity/demand, we continue to remain -1 has refused to admit the plea the pension scheme crossed offtake under the scheme
IN BRIEF robust,” a senior government official said. Guergam meal -15
0
arguing that it was ‘miscon- the 5-million subscriber mark to high inflation and rise in
“For instance, for marine products, there is 9 ceived’ and was essentially in April 2024. cost of living
a 6 per cent increase in volumes exported but Dairy products -24 seeking a review of the While 4.3 million people
App-based investment scheme in terms of value of exports there was a 7 per
cent decline due to fluctuation in commodity
Vegetable oils -7
1 court’s 2012 order. He had
said there was no ‘reasonable
had joined the scheme in
FY20, merely 130,000 people
to contribute ~55 per month.
An equal matching contribu-
case: Nationwide CBI searches prices. In fact, this year was notable for the
depressed commodity market,” the person cited
Cashew -4
9
11
cause’ to entertain it, and dis-
missed it under official rules
were inducted in FY21, fol-
lowed by 161,000 subscribers
tion is paid by the central gov-
ernment. The Life Insurance
TheCentralBureauofInvestigation(CBI)hassearched above said. While India’s exports saw robust Coal, coke* -37 of the Court. in the subsequent financial Corporation (LIC) of India is
30locationsacross10statesandUnionTerritories growth during financial years 2021-22 and 2022- Dye intermediates 24 “This will not change the year. Around 255,000 people the fund manager to this
afterregisteringacaseinafraudulentinvestment 23, the growth started slowing due to falling -9 existing laws governing spec- had exited the scheme in FY22, scheme. Experts attribute the
Fertilisers manufactured -1 48
schemelinkedtotheHPZTokenapp,officialssaidon commodity prices, high inflation as well as per- trum allocations for satellite thus further deteriorating the slow off-take under the
Wednesday.Theagencyhasallegedthatthescheme sistent geopolitical challenges. 5 communications, which are subscriber base. It added near- scheme to the high inflation
involvedismisleadingthepublictoinvestinnon-existentcrypto- As a result, during April-February, India’s
Floor covering of jute -3 stated in the Telecom Bill. ly 600,000 subscribers in and rise in cost of living.
currencyminingmachinerentals.Thenationwideoperationended exports saw 3.3 per cent contraction at $395.42 Jute yarn 14 The government will study FY24. This is against a target These have made it difficult
Tuesdaynight.Twoprivatecompanies,ShigooTechnologyPrivate billion. Among the 19 items, petroleum prod- -14 the observations of the enrolment of 10 million bene- for unorganised workers to
*and briquettes Source: Dept. of Commerce
LimitedandLillianTechnocabPrivateLimited,alongwiththeir ucts, coal, inorganic chemicals and fertilisers Court,” a government source ficiaries in each of the finan- contribute to this voluntary
directorswerebookedinthecaseunderIPCSections120-B,419,420 are some key exported products from India. said on Wednesday. cial years, starting 2020-21. pension scheme.
andSection66DofITAct,2000,officialssaid. PTI In the case of petroleum products, growth, tensions. The divergence was massive in the People in the know said The scheme was “Soon after the scheme was
in terms of volume, was 15 per cent. In terms of case of coal, coke and briquettes. In terms of the government can now announced in the 2019 interim launched, millions of people
value, the contraction was 11 per cent as crude volume, there was an 11 per cent growth and in appeal against the Registrar’s Union Budget by the then lost their jobs during the Covid
‘Regularly working’ with India oil prices remained volatile due to geopolitical value, there was a 37 per cent contraction. order within 15 days. finance minister Piyush Goyal
and was intended to cover
lockdowns, making it difficult
to contribute. Thereafter, the
in Pannun probe, says US around 100 million people in income of people in the vast

Ships moved 9% faster at major

the next five years. It was unorganised sector has not
The United States (US) is “regularly working” with India in its meant for workers in the age risen much and the high infla-
investigation into the allegations related to the plot to assassinate group of 18-40 years whose tion in the past couple of years
Sikh separatist leader Gurpatwant Singh Pannun, a US state monthly income was ~15,000 has raised the actual cost of liv-
department official has said. The remarks by US state department
Principal Deputy spokesperson Vedant Patel came after The
Washington Post, citing unnamed sources, named a Research and
ports in FY24 on better infra or less and did not join
schemes like Employee
Provident Fund or Employee
ing. This made it difficult for
these workers to sustain the
burden of monthly contribu-
Analysis Wing (RAW) officer in connection with the alleged plot to DHRUVAKSH SAHA government through the Ministry of Ports, mobile app facilitate real-time port oper- State Insurance Corporation. tion under the scheme,” said
kill Pannun in the US last year. PTI New Delhi, 1 May Shipping, and Waterways, while non- ations and monitoring. Further, various “It is expected that at least labour economist Santosh
major ones are with state governments and process reforms have been implemented, 100 million labourers and Mehrotra. Last year, the labour
The turnaround time at major ports private players. The average output of each such as transitioning to a paperless system workers in the unorganised ministry told the Parliame-
Sugar mills end season with improved by 9 per cent to 48 hours,
compared to 52.9 hours a year before, as
vessel per day at berth increased by 7.5 per
cent in FY24 year-on-year (Y-o-Y) to 18,925
for various clearances at ports, imple-
menting faceless assessment by the cus-
sector will avail the benefit of
Pradhan Mantri Shram-Yogi
ntary Standing Committee on
Labour that the scheme is
higher than expected output infrastructure and processes strength-
ened in the financial year ended March
tonnes, according to the shipping ministry.
Total vessels handled by major ports
toms department, introducing provisions
for e-way bills etc,” said Sushi S Shyamal,
Maandhan within the next five
years, making it one of the
undergoing an evaluation by
the Indian Institute of Public
Theproductionofsugarhasbeenhigherthanexpectedthisyear 31, 2024 (FY24). increased by 6.32 per cent to 23,240 ships. investment banking partner (ports and largest pension schemes in the Administration (IIPA).
afterthecompletionofcanecrushingatmostofitsmills,industry “Faster movement through major ports “Ports have invested in newer, techno- shipping) at EY. world,” Goyal had said. “Scheme guidelines will
officialssaidonWednesday,withalatepick-upinrainsraising has also resulted in a higher cargo loading logically advanced cranes, which are able India’s underperformance in the mar- Under the scheme, a work- be revised accordingly to cov-
output.Theoutputinthe2023-24seasonsofarstandsat31.59million ability as well, as major ports saw a 4.5 per to do more moves per hour. Monitoring itime space has been cited as a factor for er joining the scheme at the er the maximum number of
tonnes(mt),accordingtotheNationalFederationofCooperative cent increase in total traffic at 819 million and tracking systems installed by major its high cost of logistics. According to age of 29 has to contribute unorganised workers. The
SugarFactories.Thatisdown1.8percentfromthepreviousfullyear, tonnes (mt) in FY24,” said a senior gov- ports enable real time data points, improv- experts, the country is now doing better only ~100 per month till the final report is awaited,”
butabovethe29mtexpectedatthestartofthecurrentseasondue ernment official. ing operational efficiencies and processes. due to improved infrastructure at major age of 60 years, while a worker labour officials have told the
todroughtinKarnatakaandMaharashtra. REUTERS Major ports are owned by the central Digital services such as the Sagar-Setu ports and greater private participation. joining the scheme at 18 has House panel.

AfterMarchpeak,UPIpaymentsdipinApril Petrolsalessoar CoalIndiareports ATFpriceup0.7%,

SHINE JACOB
Chennai, 1 May
Unified Payments Interface
(UPI) transactions declined in
volume and value in April by
1 per cent and 0.7 per cent,
compared to March 2024.
Transactions stood at
~19.64 trillion in value terms,
down from ~19.78 trillion in
March. There were 13.3 billion
transactions in April, com-
pared to 13.44 billion in March.
“UPI volumes and values
continue to grow year-on-year
(Y-o-Y), reflecting the ongoing
focus on digital adoption
across the country and the
convenience that UPI offers.
The month-on-month reduc-
tion is not a comparable fac-
tor, given that March typically
sees higher volumes during
the year, hence April 2024 fig-
ures are lower than those of
March 2024," said Vivek Ayer,
partner at Grant Thornton
cent in value. In February
12.3%,diesellogs 7%riseinoutput commercialLPG
DIGITAL SNAPSHOT
Unified Payments Interface
2024, transactions stood at 2.3%fallinApril to 61.8mt inApril rate cut ~19/unit
~12.10 billion and ~18.28 tril-
Value in 2024 (in ~ trn) lion, respectively. Petrol consumption in the country State-owned Coal India Ltd (CIL) on JetfuelorATFpriceonWednesdaywas
March 19.78 Immediate Payment soared 12.3 per cent in April, but diesel Wednesday said its production increa- hiked by a marginal 0.7 per cent while
Service (IMPS) transactions sales continued to slide despite the sed 7.3 per cent to 61.8 million tonnes ratesofcommercialLPGusedbyestab-
April 19.64 declined by 7 per cent in value country entering into general elec- (mt) in April. The company had pro- lishments such as hotels and restaurants
Volume 13.44 13.30 and 5 per cent in volume in tions, preliminary data of state-owned duced 57.6 mt of coal in the corresponding was cut by ~19 per cylinder in line with
(in bn) March April compared to March. firms showed on Wednesday. Petrol sales month of the previous FY, CIL said in a international prices. Aviation turbine
Source: NPCI
April In value terms, transac- of three state-owned firms, which control filing to the BSE. CIL accounts for over 80 fuel (ATF) price was hiked by ~749.25 per
tions totaled ~5.92 trillion, 90 per cent of the fuel market, rose to 2.97 per cent of domestic coal production. The kilolitre, or 0.7 per cent, to ~101,642.88
Bharat. Y-o-Y, UPI transac- down from ~6.35 trillion in million tonnes in April compared to 2.65 firm’s coal offtake also registered a rise of per kl in the national capital, according
tions increased by 50 per cent March and ~5.68 trillion in million tonnes of consumption in the 3.2 per cent to 64.3 mt last month, over to a price notification of state-owned fuel
in terms of volume and 40 per February. same period last year. PTI 62.3 mt in the year-ago period. PTI retailers. PTI

not only enhance operational driving hundreds of pilots, tions from project inception. benchmark, thanks to the Chhabria, a senior director at
> FROM PAGE 1 efficiency but also empower proof-of-tech, and PoC exercis- Besides, India’s GCCs have strong momentum in the Nexdigm. Experts believe that > BS SUDOKU #4271
teams to focus on higher-value es, with more in the pipeline. demonstrated adaptability to economy and efficient tax col- rising GST revenue should

SFBs... activities, driving overall pro-

The largest SFB in the country,
AU SFB, which has a well-diver-
sified loan book, meets all the
parameters set by the regulator
for conversion to a universal
bank. At the same time, AU SFB,
which merged with Fincare SFB
earlier this year, said the bank’s
ductivity and innovation.
India R&D centre has teams
that help train the AI systems
that help radiologists and oth-
er health care professionals
worldwide,” said Dileep
Mangsuli, executive director
and head of Siemens
Healthineers Development
To drive these initiatives suc-
cessfully, we typically need a
deep understanding of the
business context and expected
outcomes, data foundation,
levels of quality/constraints,
and the ability to collaborate
across enterprise stakeholders.
The GCCs, as the existing glob-
al custodian of technology and
evolving technological trends.
From focusing on Cloud migra-
tion a few years ago, they have
shifted focus to areas such as
data engineering, analytics, and
digital capabilities crucial for
GenAI application,” said Priti
Arora, president of GCCs,
CRISIL.
lections,” she wrote on X.
Congratulating the Central
prompt the government to
reform the tax system. “The
Board of Indirect Taxes and GST growth rate of 17.1 per cent
Customs (CBIC), the revenue in April is almost double the
department, officers of state 9.1 per cent growth in GDP at
and central levels, the finance current prices (during 2023-
minister said: “Their sincere 24)... This has set the stage for
and collaborative efforts have pursuing forward-thinking
achieved this landmark.” reforms under GST 2.0,” said
Many experts concurred Mahesh Jaising, partner at

GST...
current focus was on integrat- Centre. Thryve Digital Health, business delivery operations, that the robust GST collections Deloitte India.
ing with Fincare. a GCC focused on quality are in an ideal position to drive should be attributed to the

“Prima facie, it looks like we
are meeting most of the criteria
set out by the regulator.
However, we are in the process
of studying the circular in detail
and will discuss with our board
in the near future on the next
course of action,” said Uttam
Tibrewal, executive director and
deputy chief executive officer,
AU SFB. “Currently, we are fully
focused on ensuring a smooth
integration with Fincare SFB
and scaling our recently
launched Authorised Dealer-I
business of cross-border trade
and forex for our customers."
Jaipur-based AU SFB has a
total business of over ~1.61 tril-
lion as on March 31, with a loan
book of almost ~74,000 crore
and deposits of ~87,182 crore.
India GCCs...
“We use these tools extensively
for data analysis. These efforts
health care, has recently
implemented a top-down ‘AI
at Scale’ programme and made
available a proprietary GenAI
platform that focuses on col-
laboration and innovation for
all global employees.
“This platformisation of
GenAI within Thryve and the
larger enterprise has democra-
tised the use of AI in all devel-
opment, maintenance, and
innovation activities,” said
Balasubramanian
Sankaranarayanan, president
and chief executive officer, of
Thryve Digital Health.
Sankaranarayanan high-
lights a few structural reasons
why Indian GCCs are emerging
as PoC hubs for GenAI
applications.
“India’s engineering talent
base has scaled itself with skills
to meet the demands of the
new AI-led future. Particularly
with GenAI, enterprises are all
and accelerate these AI initia-
tives,” said Sankaranarayanan.
“Other than the high cost
and complexity involved,
these initiatives, if and when
successful, could provide sig-
nificant competitive differen-
tiators for the enterprises —
and GCCs provide the enter-
prise an ideal business context,
rich tech talent at scale, and
intellectual property to drive
these,” added
Sankaranarayanan.
Analysts believe high-qual-
ity skills and the ability to
adapt to changing technolo-
gies make Indian GCCs a fertile
ground to test GenAI apps.
GCCs in India have evolved
from cost arbitrage centres to
strategic hubs of innovation
and value creation… They have
transitioned from execution
partners to centres of excel-
lence and innovation, partici-
pating in strategic conversa-
“There are no dues pending on
account of IGST settlement by
the central government,” she
wrote on microblogging site X.
After the settlement of IGST
collection, central GST (CGST)
mop-up rose by 27.8 per cent
Y-o-Y to ~94,153 crore in April,
while state GST (SGST) rev-
enue grew 25.9 per cent to
~95,138 crore.
All states and Union terri-
tories -- with the exception of
the UTs of Jammu and
Kashmir, Lakshadweep, and
Andaman and Nicobar
Islands, and the northeastern
states of Sikkim, Nagaland,
and Meghalaya -- witnessed a
rise in GST collection in April
on a Y-o-Y basis.
Sitharaman attributed the
record GST collections to eco-
nomic activities and efficient
tax collections. “The GST col-
lections cross the ~2 trillion
Mubadala...
administrative measures by
the GST authorities. “The con-
certed efforts of GST officers,
including zero tolerance for “The home loan growth
non-filers, coupled with rigor- momentum is expected to
ous measures to combat fake remain strong in the medium
invoicing and registrations, term as well.”
have significantly bolstered SHFL on Tuesday reported
GST collections in the State’s 67 per cent year-on-year (Y-o-
coffers,” said Saurabh Agarwal, Y) growth in its fourth quarter
a tax partner at EY. profit after tax (PAT) at ~62.1
Some others attributed the crore. The company’s assets
robust GST collection in April under management (AUM) SOLUTION TO #4270
to a rise in consumer demand also grew to ~13,762 crore in the
for products to combat the same quarter. Very easy: «
scorching heat and brisk travel The disbursals for the quar- Solution tomorrow
due to school and college vaca- ter jumped 77 per cent Y-o-Y to
tions. “The significant rise in ~2,302 crore, and the overall
domestic transactions can be disbursal reached ~7,591 crore HOW TO PLAY
attributed to consumer spend- in the past financial year. Asset
Fill in the grid so that
ing being focused on beating quality also improved with
the summer heat with pur- gross stage-3 assets at 1.03 per
every row, every
column and every 3x3
chases like air conditioners cent, a 2 basis points increase
and beverages, as well as quarter-on-quarter, and a 10 box contains
increased travel during the bps increase Y-o-Y. the digits 1 to 9
long vacations from schools
and colleges,” said Sanjay More on business-standard.com
.
HYDERABAD | THURSDAY, 2 MAY 2024 COMPANIES 7 <

‘In three yrs, we want to

Form No. INC-26
[Pursuant to Rule 30 of the Companies
(Incorporation) Rules, 2014]
Advertisement to be published in the newspaper
for shifting of Registered Office of the Company
from the State of Telangana to the state of Haryana

reach 1 mn direct outlets’

Adani Wilmar expects margins to improve as
prices of commodities stabilise. After the
company’s March-quarter results, ANGSHU
MALLICK, managing director (MD) and chief
executive officer (CEO), and SHRIKANT
KANHERE, chief financial officer (CFO), spoke
with Sharleen D’Souza in a video interview.
Edited excerpts:
Will retail penetration be the driving
force for volume growth in the edible
oil business?
Mallick:Weareinthestaplesbusiness
whichiseverybody'sneed.Theyeither
buylooseorpacked,buttheyneed
staples.Now,distributionisthekeyto
successforanystaplescompany.
Consumerstodayarebusyanddon'twait
forabrandtocometoashop.Theycan
alwaysconsideranalternativebrand.We
haveseenthatwithbetterdistribution,
betteristhereach,andyouarereadyto
winthisgame.Wehavebeenbuildingour
infrastructureandwearetouching
around730,000outletsdirectlyand
indirectcoverageisaround1.8million.
And,sometimesinaquarter,itcanalso
be2.1million.Thenumberofdistributors
isimportantandyoursupplychain
mechanismshouldbeverystrong.
What will the contribution of FMCG be
in FY25?
Kanhere: If you look at our numbers for
the past couple of quarters, the fast-
moving consumer goods (FMCG)
volume growth is far more than the
edible oil growth. This is the first
time this year that we have
grown double digits on edible
oil after at least two-three years.
Even if edible oil keeps growing
at 10-11 per cent and FMCG at
over 30 per cent, the overall
contribution of FMCG will keep
increasing. Contribution of FMCG to
overall revenue is at 17 per cent. Two
years back, it was at 12 per cent. I think
we should be seeing more than 20 per
cent contribution from food and FMCG
in the overall business.
How do you see commodity prices
moving?
Mallick: Stability of edible oil may
continue for at least three to four
months, unless some event happens all
ANGSHU MALLICK
CEO & MD, Adani Wilmar
of a sudden, like the Red Sea problem or
Ukraine war. If these issues don’t occur,
then the prices are stable. We will see
good volume and good consumption.
This year, wheat production is good, but
the government would like to build its
inventory. So, they have bought 20
million tonnes and want to buy 32
million tonnes more. In the month of
May, they will buy the balance 12 million
tonnes. The government has enough
grain, so wheat prices are likely to
remain stable. I see India producing a
good quantity of rice and slowly I think
the export market will open up. In
pulses, we are unsure about the
price movement.
How do you see margins
playing out?
Mallick:Marginsarelikelytobe
better,because,astheprices(of
commodities)becomemore
stable,brandsstartgivingyoubetter
margins.Thisisbecausebrandsalways
playbetterwhenthecommoditiesare
safe.Secondisthatasthevolumegoesup,
yourfixedcostcomesdownlike
advertisingandmanpowercost.Between
lastandthisyear,ifwegrowat20-25per
centinfood,thenourfixedcostwillgo
downandthatwilladdtothemargin.
How will the demand be in rural India?
Mallick: We are in the staples business.
And, we are protected from such kinds
BEFORE THE CENTRAL GOVERNMENT
(REGIONAL DIRECTOR, SOUTH EAST REGION)
In the matter of Sub-section (4) of section 13 of the
companies act, 2013 and Clause (a) of sub-rule (5) of
rule 30 of the companies (incorporation) rules, 2014
AND
IN THE MATTER OF M/S FP SAMRUDDI PRIVATE
LIMITED (CIN: U40107TG2021PTC155983), having
its registered office at Plot No N46, House No 4-9-10
Hmt Nagar, Hyderabad,Telangana 500076 India
…………..Petitioner
Notice is hereby given to the General Public that the
Company proposes to make an application to the
Central Government, power delegated to Regional
Director, South East Region, under Section 13 of the
Companies Act, 2013, seeking confirmation of
alteration of the Memorandum of Association of the
Company in terms of the Special Resolution passed at
the Extra Ordinary General Meeting of the Company
held on April 04, 2024 to enable the Company to shift
its Registered Office from the 'STATE OF
TELANGANA' to the 'STATE OF HARYANA'.
Any person whose interest is likely to be affected by
the proposed shift of the Registered Office of the
Company, may deliver, either on the MCA-21 portal
(www.mca.gov.in) by filing investor complaint
form, or cause to be delivered, or send by registered
post, his/her objections supported by an affidavit
stating the nature of his/her interest and grounds of
opposition, to the Regional Director, South East
Region, 3rd Floor, Corporate Bhawan,
Bandlaguda, Nagole, Tattiannaram Village,
Hayat Nagar Mandal, Ranga Reddy District,
SHRIKANT KANHERE Hyderabad-500 068, Telangana, within fourteen
CFO, Adani Wilmar days of the date of publication of this notice, with a
copy to the applicant Company at its Registered
Office, at the address mentioned below.
of variations because these are essential Plot No N46, House No 4-9-10 HMT Nagar,
Hyderabad, Telangana, India, 500076
commodities. Every consumer in the For and on behalf of FP Samruddi Private Limited
village would like to have branded oil or Sd/-
branded atta in which we see good Rahul Nandlal Mishra
Date : April 30, 2024 Additional Director
traction. In fact, we have seen a 1 per Place : Gurugram DIN: 07459030
cent increase in share in the rural
segment. But FMCG companies are
impacted because of high inflation and
low consumption in villages. Going
forward, if the monsoon is good, rural
will get enough energy to consume
more and go back to when it was surely
doing much better. I look forward to a
good monsoon. The rabi crop has been
good and farmers have got good money.
But they also need one more crop,
particularly the kharif crop. If that is
good, then at least they have an assured
income for one year.
What is your distribution target for
FY25?
Mallick: Direct reach is the most
important. Last year, we added around
100,000 outlets in the rural markets and
almost 35,000-40,000 in urban areas.
We could directly reach 730,000 outlets.
This year, in rural markets, we are
presently available in around 34,000
towns and we want to reach 50,000. If
we reach 50,000 towns, then our direct
reach can touch about 825,000 outlets.
That is our target because in three years,
we want to reach 1 million direct outlets.
Our target will come from rural areas as
there are more outlets there.

LiciouseyesIPOin IntalkswithVi,
24months,500 hopetorecover
dues:IndusTowers CIN : U67120MH1992PLC068060

storesinfiveyears
PEERZADA ABRAR
Bengaluru, 1 May
The fresh meat and seafood
delivery startup Licious plans to
set up 500 stores nationwide
within the next five years as part
of an omnichannel strategy. The
aim is to attract new users in the
offline channel and encourage
them to transact online as well.
The move would also help the
company in its efforts to achieve
profitability and go for an initial
public offering (IPO) in the next
24 months, according to the
sources.
The stores would be set
up in about 20 Indian
cities, but most of them
would be established
in about eight cities.
The company plans to
increase the store count
to 40 across two or three
cities by the end of this fiscal.
Temasek-backed Licious has
about $100 million to fund such
expansion. The firm plans a pre-
IPO funding round sometime in
2026.
“In the past two years, the
firm has focused on long-term
sourcing contracts related to
meat and seafood, which
ensures stability in sourcing and
pricing,” said a person familiar
with the company’s strategy. “It
is a farm-to-fork model which
gives them control over wastage
and cost. The wastage has
reduced from 6 per cent to 4 per
cent.” Timely access to customer
purchase and consumption data
enables about 4 per cent
wastage, compared to global
players in the perishables space
operating at over 10 per cent.
The firm aims to cut down this
further to 1.5 per cent by impro-
vising supply chain and last mile
cluster tech.
Licious aims to turn prof-
itable on earnings before inter-
est, tax, depreciation and amor-
tisation (Ebitda) basis by March
of this year. With an impres-
sive annual revenue run
rate of approximately
~850 crore, the company
has seen a notable
increase in monthly rev-
enue, rising from ~60
crore to about ~72 crore year-
on-year (Y-o-Y).
Growth trajectory
The platform is expecting to
achieve a revenue run rate of
~1,200 crore by March 2025. This
means it expects to have a
monthly revenue run rate of
~100 crore. Out of this, ~90 crore
may come via app, while rest of
the revenue may come from the
new retail stores.
The monthly cash burn has
reduced to about ~12 crore from
~26 crore on Y-o-Y basis.
Regd office : Times Square Building, E Wing, 4th floor, Opp. Mittal
Industrial Estate, Gamdevi, Andheri Kurla Road, Marol, Andheri (East),
SUBHAYAN CHAKRABORTY
Mumbai 400 059, Maharashtra
New Delhi, 1 May
T: 022 6859 9999 F: 022 6859 9900
Indus Towers on Wednesday said that it was in talks Website : www.avanse.com Email : investorrelations@avanse.com
with Vodafone Idea (Vi) and remained hopeful of recov- Extract of Statement of Audited Consolidated Financial Results for the year ended March 31, 2024
ering their dues “soon” given the recent fundraising by
(Rs. In Lakhs)
the telecom operator, the company's senior management
said in the post-results call for Q4 FY24. Year ended
Vi's recently concluded ~18,000 crore follow-on pub- Sr.
Particulars March 31,2024 March 31,2023
lic offer (FPO) has given hope to the company of dues No.
being cleared, the Indus management said, even as they Audited Audited
stressed it was still too early to comment on a timeline 1 Total income from operations 1,72,696.10 98,959.56
for repayment.
“There is a possibility that our 2 Net profit for the period (before tax, exceptional and/or extraordinary items) 45,929.10 21,131.40
cash flow situation might improve Last month, 3 Net profit for the period before tax (after exceptional and/or extraordinary items) 45,929.10 21,131.40
in FY25,” Prachur Sah, Managing Citi Research
Director & CEO of Indus Towers estimated Vi's 4 Net profit for the period after tax (after exceptional and/or extraordinary items) 34,240.18 15,770.99
said. Last month, Citi Research total dues
estimated Vi's total dues to Indus to Indus at 5 Other comprehensive income after tax (970.66) 230.40
at ~5,700 crore after the last round ~5,700 cr after 6 Total comprehensive income for the period after tax 33,269.52 16,001.39
of payments. Indus executives the last round
stressed the company has recov- 7 Paid-up equity share capital 12,591.16 10,663.80
of payments
ered additional sums beyond the 8 Outstanding Redeemable Preference Shares - -
full collection of current dues in the latest quarter, lead- 9 Reserves (excluding revaluation reserves) 67,057.15 33,275.60
ing to write-backs in provisions.
However, Indus Towers is keen on servicing Vi's 10 Securities premium account 2,88,023.12 1,71,032.70
expected network expansion for 4G and rollout of 5G, 11 Net worth 3,64,243.02 2,11,623.29
pointing out the company has an expansive portfolio of
towers. Sah said most telcos operate both macro towers, 12 Paid up debt capital/outstanding debt 10,13,524.88 7,21,012.63
which have higher height and larger throw, alongside 13 Debt equity ratio 2.76 3.17
leaner towers which have lower height, smaller config- 14 Earnings Per Share (of Rs.5/- each) (for continuing and discontinued operations) -
uration and loading capacity. A day before, the tower
company had reported a 32.4 per cent y-o-y rise in con- Basic 15.40 9.03
solidated profit after tax (PAT) in the fourth quarter Diluted 15.05 8.85
(January-March) of FY24. PAT stood at ~1,853 crore in 15 Capital redemption reserve - -
Q4, as compared to ~1,399 crore in the corresponding
16 Debenture redemption reserve - -
period of the previous year. On a sequential basis, PAT
rose 20.3 per cent from the ~1,540 crore registered in Q3. 17 Total debt to total assets (%) 70.66% 69.92%
Revenue rose to ~71,932 in Q4, up 6.48 percent from 18 Net profit margin (%) 19.83% 15.94%
~67,549 in Q4 FY23. However, it slipped by marginally
from the ~71,990 recorded in the immediately preceding
quarter. 1) The above is an extract of the detailed format of Yearly Financial Results filed with the Stock Exchange under Regulation 52 of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015. The full format of the financial results is available on the websites of BSE Limited
www.bseindia.com and the Company at www.avanse.com respectively.

N Q4 RESULTS CORNER N 2) The Company is a debt listed entity and hence is required to publish annual consolidated financial results in terms of Regulation 52 (2) (d) of the
SEBI Listing Regulations, 2015. Therefore, the Company has published the audited consolidated financial results for
the year ended March 31, 2024 and March 31, 2023.

Ambuja Cements posts AdaniPowerprofit 3) Key Standalone Financial Information

Sr No. Particulars Quarter Ended March 31,2024 Quarter Ended March 31,2023 Year Ended March 31,2024 Year Ended March 31,2023

profit at ~1,525 crore tanks48%to~2.7Kcr 1

PRESS TRUST OF INDIA
New Delhi, 1 May
Adani group firm Ambuja Cements
Ltd on Wednesday reported a con-
solidated net profit at ~1,525.78 crore
for the fourth quarter ended on
March 2024. The company had
reported a net profit of ~763.30 crore
in the January-March quarter a year
ago, according to a regulatory filing.
Its consolidated revenue from
operations was at ~8,893.99 crore dur-
ing the quarter under review. It was
~7,965.98 crore in the corresponding
period last financial year, the filing
said. According to Ambuja Cements
Ltd (ACL), the consolidated results
for the quarter and the financial year
ended on Mar 31, 2024, include the
financial results of Sanghi, which was
acquired by Adani Group firm last
quarter. Hence, the results “are not
comparable with quarter and fifteen
months ended March 31 2023,” it
said. ACL’s total expenses in the
March quarter were at ~7,741.31 crore.
Its total revenue in the March
quarter was at ~ 9,127.45 crore. The
consolidated results of Ambuja
Cements include the financial per-
formance of its step-down firm ACC
Ltd, in which it owns around 51 per
cent stake.
2
Total Income from operations
Profit before tax
49,010.74
12,284.17
30,688.92
6,809.42
1,72,616.27
45,962.51
98,959.55
21,133.85
Adani Power Ltd on Wednesday reported a 47.78 3 Profit after tax 9,097.93 5,101.98 34,256.97 15,773.44
per cent decline in its consolidated net profit
4) For the other line items referred in Regulation 52 (4) of the SEBI (Listing and Other Disclosure Requirements) Regulations, 2015, the pertinent
to ~2,737.24 crore for the March quarter, mainly
disclosures have been made to BSE Limited and can be accessed on www.bseindia.com
on account of increased expenses.
5) Net worth is equal to paid up equity share capital plus other equity less deferred tax assets less intangible assets
Its net profit was ~5,242.48 crore in the
6) Debt service coverage ratio, Interest service coverage ratio, Current ratio, L ong term debt to working capital ratio, Bad debts to account receivable
January-March period of the preceding 2022- ratio, Current liability ratio, Debtors turnover, Inventory turnover and Operating margin (%) are not applicable.
23, the company said in an exchange filing. 7) Previous period/year figures have been regrouped / reclassified wherever necessary to correspond with the current year classification/disclosure.
During the fourth quarter, the company’s For Avanse Financial Services Limited
total income was ~13,881.52 crore against
~10,795.32 crore a year ago.
The expenses stood at ~10,323.58 crore in the
period under review compared to ~9,897.60
crore in the year-ago period. However, for the Amit Gainda
Place: Mumbai Managing Director & CEO
entire FY24, the company’s net profit almost Date: April 30, 2024 (DIN - 09494847)
doubled to ~20,828.79 crore from ~10,726.64
crore registered in FY23. In FY24, the compa-
ny’s income rose to ~60,281.48 crore against
~43,040.52 crore in FY23. PTI
8 WORLD
>
HYDERABAD | THURSDAY, 2 MAY 2024

IN BRIEF
Binance CEO faces
Teslapullstheplugonsuperchargerteam
4-month jail term
Mayrehireafewtooperatetheexistingnetwork
BLOOMBERG
SpaceX starts booking MISSION DETAILS

BLOOMBERG
1 May
“TESLASTILLPLANSTO GROWTHE
SUPERCHARGER NETWORK, JUST space tourism flights
T ATASLOWER PACE FOR NEW
1 May esla eliminated almost its entire
supercharger team, which had NANDINI SINGH slots are pegged for late 2024.
Binance founder Changpeng built a vast network of public LOCATIONS & New Delhi, 1 May The Dragon capsule, a stalwart
Zhao was ordered to spend four charging stations that virtually every MORE FOCUS ON of SpaceX’s fleet, offers passage for
months in prison for failures major automaker is in the process of Elon Musk-founded SpaceX, which seven thrill-seekers to Earth orbit
that allowed cybercriminals tapping into in the US.
100% UPTIME has long been synonymous with and beyond. This engineering mar- >Bookings >Ticket prices
and terrorist groups to freely The decision to cut the nearly & EXPANSION pushing the boundaries of space vel not only restored the US’ capa- are pegged remain
trade on the world’s largest 500-person group, including its senior OF EXISTING exploration, is now opening its bility to ferry Nasa astronauts to the for late 2024 undisclosed
cryptocurrency exchange. director, Rebecca Tinucci, was made doors to the public. ISS but has also clocked 46 launches
Zhao, 47, was sentenced by Chief Executive Officer Elon Musk LOCATIONS” SpaceX’s website now boasts a and 42 visits to the space station. >3 to 6-day orbit around Earth
Tuesday by US District Judge in in the last week. It comes in addition portal for intrepid travellers to book The other rocket, Starship, is in for two to four passengers
Seattle. The billionaire arrived “I will do my time, to the more than 10 per cent staff cut Elon Musk flights aboard two distinct space- its testing phase. >The flight >The Starship offers
in court flanked by half a dozen conclude this phase and ordered in mid-April. Tesla CEO craft: the Dragon and the Starship. With only three launches under would orbit a 46-inch-wide
lawyers. The sentence was far focus on the next chapter The move will slow the network’s The destinations range from the itsbelt,theStarshipisyettocomplete
Earth every 90 Dragon capsule’s
below the three years requested of my life (education)... I growth. There already are discussions Earthly orbital laboratory of the a successful re-entry to Earth.
by prosecutors, who had sought will remain a passive about rehiring some of the people Rivian, Ford Motor and General Motors International Space Station (ISS) to However, SpaceX’s President and
mins at an cupola window
to make an example out of Zhao investor (and holder) in affected in order to operate the existing are among the carmakers adopting the barren landscape of Mars. Chief Operating Officer, Gwynne altitude of 180 with 360-degree
to a heavily-scrutinised indus- crypto,” said Changpeng network and grow it at a much slower Tesla’s charging connectors for their Dreamers and adventurers alike Shotwell, hinted at an upcoming to 300 miles view of the planet
try rebounding from a slew of Zhao in a post on X rate. In a post on X, Musk confirmed EVs, giving thousands of customers can now book these adventures via flight in early May, focusing squarely >10-day voyage with the
high-profile scandals. that Tesla will slow its expansion. access to the Tesla charging network. email links displayed on SpaceX’s onperfectingthiscrucialmanoeuvre. International Space Station (ISS)
It is the first time a chief executive has ever gone to jail for a Tesla shares fell as much as 1.8 per The job eliminations mean Rivian, webpage. Inquiries about booking SpaceX has yet to disclose the
bank secrecy act violation, a charge that has been used cent in pre-trading on Wednesday. Ford and others have lost their main flights to the ISS, moon, Mars, or price tag for these escapades. The >7-day lunar >Passengers
repeatedly in crypto prosecutions in recent years. In imposing The job cuts have left executives at points of contact in Tesla’s charging Earth’s orbit are also just a click firm is yet to respond to a Business sojourn beckons, would travel
the sentence, Jones said he hoped Zhao understood that, despite another electric-vehicle maker, Rivian unit shortly before the kickoff of the away. While the timelines for these Standard email requesting ticket with 12 240,000 miles
“wealth, power and status,” no person is immune from prose- Automotive, confused and concerned. busy summer driving season. space excursions vary, the earliest pricing information. passengers away from Earth
cution or above the law.
Zhao, who didn’t visibly react to the sentence, is expected to
serve his four-month stint at Seattle’s Federal Detention Center,

Protesters clash at UCLA after police Amazon sees

SeaTac. A date for Zhao to turn himself in to prison authorities
has not been decided. In a post on X after the sentencing, Zhao
said “I will do my time, conclude this phase and focus on the
next chapter of my life (education).” He added that he “will
profit treble on
remain a passive investor (and holder) in crypto.”
clear demonstration at Columbia Cloud demand
Fitness influencer got 11 yrs Over 300 held in crackdown
for ‘terrorist offences’: Saudi at Columbia University FINANCIAL STATUS
Saudi Arabia confirmed in a letter to the United Nations that a AMAZON.COM, INC
female fitness instructor who was popular online received an AGENCIES (Consolidated figures in $ bn)
11-year prison sentence but did not specify any of her alleged Los Angeles, 1 May Q1 CY23 Q1 CY24
“terrorism offenses.” Though the kingdom insisted the case Net sales 127.3 143.3
had nothing to do with the instructor’s online presence, human New York City Mayor Eric Adams says about 300 Operating expenses 122.5 128.0
rights activists say the conviction levied against Manahel people were arrested in police crackdowns on
Operating income 4.7 15.3
al-Otaibi shows the limits of expression in Saudi Arabia. AP/PTI pro-Palestinian protests at Columbia University
and City College. Net income 3.1 10.4
Dueling groups of protesters clashed Amazon Web Services (AWS)
US job openings fell to Wednesday at the University of California, Los
Angeles, grappling in fistfights and shoving, kick-
Net sales 21.3 25.0

three-year low in March ing and using sticks to beat one another. Hours
earlier, police burst into a building at Columbia
Operating expenses
Operating income
16.2
5.1
15.6
9.4
USjobopeningsfelltoathree-yearlowinMarch,whilethe University that pro-Palestinian protesters took Source: Company
numberofpeoplequittingtheirjobsdeclined,signsofeasing over and broke up a demonstration that had para-
labormarketconditionsthatovertimecouldaidtheFederal lyzed the school while inspiring others. Amazon.com reported quarterly results
Reserve’sfightagainstinflation.Jobopenings,ameasureoflabor After a couple of hours of scuffles between above Wall Street’s expectations, as inter-
demand,weredown325,000to8.488milliononthelastdayof pro-Palestinian and pro-Israeli demonstrators at est in artificial intelligence (AI) helped
March,thelowestlevelsinceFebruary2021,theLaborDepart- UCLA, police wearing helmets and face shields (Above) Police use a special drive cloud-computing growth.
ment'sBureauofLaborStatisticssaidonWednesday. REUTERS formed lines and slowly separated the groups. vehicle to enter Hamilton Hall CEO Andy Jassy told analysts that for
That quelled the violence, and the scene was which protesters occupied, as Amazon “there is a big opportunity in
calm as day broke. officers enter the campus of front of us” in servicing AI customers.
UK records 80% drop in Tent encampments of protesters calling on
universities to stop doing business with Israel or
Columbia University in New
York City, late Tuesday night;
Shares of the e-commerce and tech
firm climbed less than 2 per cent in
student dependents companies that support the war in Gaza have
spread across the country in a student movement
(Right) Pro-Palestinian
protesters face off with
extended trade after its current-quarter
revenue forecast came in below expecta-
TheUKgovernmenthaswelcomeda“significantfall”inthe unlike any other in the 21st century, reaching from CHP officers near an tions. The stock closed down 3.3 per cent
numberofdependents,orclosefamilymembersaccompanying New York to Texas and California. The ensuing encampment on the in the regular session.
overseasstudentsafteritscrackdownonstudentvisaseffective crackdown by police on some college campuses University of California, Chief Financial Officer Brian Olsavsky
fromearlythisyear.InanupdateissuedonTuesdayfortheperiod has stirred echoes of the much larger student pro- Los Angeles (UCLA) campus told reporters that capital spending would
ofJanuarytoMarchthisyearcomparedtothesameperiodin2023, test movement during the Vietnam War era. on Wednesday PHOTOS: REUETRS increase throughout the year, compared
theHomeOfficesaidthatdependentshadfallenbyalmost80per with $14 billion in the first quarter. “That
centamidover26,000fewerstudentvisaapplicationsmade. AP/PTI will be the low point for the year as far as
capex by quarter,” he said.

Chinahighwaycollapse: PaktoblockSIMcardsof over500Ktaxdefaulters “The majority of that will be to support

24dead,severalinjured
Atleast24peoplewerekilledwhenasectionofahighway
collapsedearlyWednesdayinChina'srainhitGuangdong
province.Thecave-inoccurredinDabuCountyofGuangdong’s
MeizhouCity.Nearly18metresofthemountainoushighway
crumbledintotheforestedslopebelow,trapping20vehiclesand
54passengersinall,theHongKong-basedSouthChinaMorning
Postreported,quotingalocalgovernmentstatement. PTI
China scientist who shared
Covid sequence back in lab
ThefirstscientisttopublishasequenceoftheCovid-19virusin
Chinasaidhewasallowedbackintohislabafterhespentdays
lockedoutside,sittinginprotest.ZhangYongzhenwroteinapost
onWednesday,justpastmidnight,thatthemedicalcenterthat
hostshislabhad“tentativelyagreed”toallowhimandhisteam
toreturnandcontinuetheirresearchforthetimebeing.“Now,
teammemberscanenterandleavethelaboratoryfreely.” AP/PTI
SAJJAD HUSSAIN
Islamabad, 1 May
Authorities in Pakistan have decided to block the
mobile phone SIM cards of over half a million tax
defaulters as part of the drive to take action against
tax evaders.
The Federal Board of Revenue (FBR) in an
Income Tax General Order (ITGO) said the mobile
SIMs of 506,671 individuals, who failed to file their
tax returns for 2023, will stay blocked until
restored by the FBR or the Commissioner Inland
Revenue having authority over the person.
It ordered the Pakistan Telecommunication
Authority (PTA) and all telecom providers to
immediately implement the ITGO no 01 of 2024
to block their SIMs and file a compliance report
by May 15, Dawn News reported.
The FBR has identified 2.4 million taxpayers
who did not exist on the tax rolls. Notices were
subsequently issued to these individuals.
The FBR has selected over 0.5 million individ-
ILLUSTRATION: AJAY MOHANTY
uals out of the 2.4 million for SIM blockade based
on one criterion: they must have declared taxable
income in one of the past three years and these
individuals did not file their returns for 2023.
According to the Active Taxpayers List (ATL),
the FBR received 4.2 million taxpayers until
March 1, 2024, as against 3.8 million returns
received during the same period of last year.
This shows a marginal increase during the
period under review. In tax year 2022, FBR
received a total of 5.9 million income tax returns.
According to the FBR official, SIMs will be
automatically restored for persons who file tax
returns.
Every Monday, FBR updates its ATL listings.
Every Tuesday, the names of persons who appear
on the ATL list will be submitted to the PTA and
telecom companies for restoration.
The officer emphasised that there would be
no separate restoration procedures, and the entire
process would be completed automatically.
The blockade of SIM cards is a new measure
taken by the FBR to encourage low-income people
to submit their tax returns to increase the number
of return filers.
The FBR’s introduction of high withholding
tax rates for non-filers follows a similar blueprint.
The FBR has focused its campaign on broad-
ening the tax base for persons who did not appear
on the tax roll. According to FBR sources, non-
filers include one-time tax filers. PTI
AWS infrastructure and in particular gen-
erative AI efforts,” he said later on a call
with analysts.
First-quarter sales increased 13 per
cent to $143.3 billion, higher than the
$142.5 billion average, according to LSEG
data. Net income more than tripled to
$10.4 billion in the first quarter.
The company expects revenue of
$144.0 billion to $149.0 billion for the cur-
rent quarter ending June, compared with
analyst consensus expectations of $150.07
billion, according to LSEG data.
Amazon Web Services (AWS), the
largest provider of cloud-computing serv-
ices, posted a 17 per cent rise in revenue
to $25.0 billion in the first quarter, com-
pared with expectations of $24.53 billion.
That compares with a rise in cloud-
computing revenue of 31 per cent for
Microsoft and 28 per cent for Alphabet
for the January-to-March period. Jassy
said AWS is now on pace to achieve $100
billion in annual sales. REUTERS

iPhones to currency exchange: Some biz making money out of Taliban rule
RIAZAT BUTT
Kabul, 1 May
YunisSafi,abusinessmaninKabul,
knowsverywelltheimportanceof
showingoffyourphoneifyouwant
somethingdone.
“InAfghanistan,yourphoneisyour
personality,”hesaid,smiling,ajewel-
encrustedringoneachhand.Oneboasts
anemerald,theotherafatRussian
diamond.“Whenyougotoameeting
withthegovernment,thebetteryour
phone,themoretheyrespectyou.”Safi
runsaphoneshopintheposhShar-e-
Nawneighborhood.Anarmedguard
standsoutside.TheiPhone15ProMax
adornstheshopshelves,retailingfor
$1,400.Hehascustomersreadytopart
withthissumofmoney,whichmaycome
asasurprisetosomegiventhecountry’s
economicwoesandoverhalfthe
populationrelyingonhumanitarianaid.
Afghanistan’sfinanceswereonshaky
groundevenbeforetheTalibanseized
powerin2021.Thebudgetreliedheavily
onforeignaidandcorruptionwasrife.
ThetakeoversentAfghanistan’s
economyintoatailspin,billionsin
internationalfundswerefrozen,andtens
ofthousandsofhighlyskilledAfghans
fledthecountryandtooktheirmoney
withthem.
But,evenamiddifficultconditions,
somebusinessesaremakingmoneyout
ofTalibanrule.Safihastappedintoa
diverseconsumerbase—theones
hungryforthelatestiPhonereleaseand
thosehappierwithsimplehandsets,
whichmakeupthebulkofhissalesand
sellforbetween$20and$200.
TheTalibanusedtoattackphone
towersandthreatentelecomcompanies,
accusingthemofcolludingwithUSand
otherinternationalforcesinhelpingtrack
insurgents’movementsthroughmobile
phonesignals.Now,they’reinvestingin
the4Gmobilenetworks.
TheCommunicationsMinistrysays
2millionnewSIMcardshavebeenissued
inthepasttwoyearsandthatsubscriber
numbersareincreasing.Ministry
spokespersonEnayatullahAlokozaisaid
thegovernmentwasplowing$100
preferiPhones.“Ofcoursetheyneed
smartphones.Theyusesocialmedia,
theylikemakingvideos.TheiPhonehas
bettersecuritythanSamsung.The
cameraresolution,processor,memory
areallbetter.Afghansusetheir
smartphoneslikeanyoneelse.”Safihas
theiPhone15ProMax,wearsanApple
WatchUltra,andownsthreecars.
Businesswasbadimmediatelyafter
theTalibantakeoverbutit’simproving,
Safisaid.“Thepeoplebuyingthenew
releaseiPhonesaretheoneswithrelatives
abroadsendingmoneytoAfghanistan.”
Remittancesarealifeline,although
they’relessthanhalfofwhattheywere
beforetheTalibantookpowerandthe
bankingsectorcollapsed.
AttheShahzadaMarketinKabul,
Afghan money changers at a currency exchange market in Kabul FILE PHOTO: AP/PTI hundredsofmoneyexchangersclutch
stacksofthelocalcurrency,theAfghani,
millionintothetelecomsectorandhad AccordingtoTradeMinistryfigures, andhawktheirwares.Theyoccupyevery
fullyrestoredhundredsoftowers. phoneimportshaverisen.Over1,584tons floor,stairwell,nook,andcranny.
Thereare22.7millionactiveSIMcards ofphonescameintoAfghanistanin2022. AbdulRahmanZirak,aseniorofficial
inacountryof41millionpeople.Ofthese, Lastyear,itwas1,895tons. atthemoneyexchangemarket,estimates
10millionareforvoicecallsandtherest SafisaidhehasmanyTaliban that$10millionchangeshandsdaily.The
areformobileinternet. customersandit’stheyoungeroneswho diasporasendsmostlyUSdollarsto
families,whoexchangeitfortheAfghani.
Thereusedtobemorewaystosend
moneytoAfghanistanbeforetheTaliban
seizedcontrol.Buttherearenomorelinks
toSWIFTorinternationalbankingand
that’samajorreasonwhybusinessisbrisk
atthemarket,hesaid.
“Theworkofmoneyexchangershas
increasedandstrengthened,”Ziraksaid.
“MoneytransferscomefromCanada,the
US,Europe,Australia,Arabnationsand
otherneighboringcountries.”Trade
becomeshecticduringtheholidays.
DuringtheholymonthofRamadan,
20,000peoplevisitedthemarketdaily
andittookmorethan90minutestoenter,
hesaid.
“Ifthesanctionsareremovedandthe
assetsareunfrozen,thenmaybeour
businesswilldecrease.ButIdon’tseethat
happening.Manydon’thavebank
accounts.Unemploymentishigh,so
peoplesendmoneytoAfghanistan.Our
businesswillbeneededforyearsto
come.”IrfanullahArif,whorunsHaqqani
Books,aspecialistretailerofIslamictexts,
isalsoupbeatabouthisfortunes. AP/PTI

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OPINION 9
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ILLUSTRATION: BINAY SINHA

Volume XXIV Number 32
Many experts question the rationale of high tariffs.
HYDERABAD | THURSDAY, 2 MAY 2024 The example of the Australian auto industry, however,
suggests an unwelcome outcome of tariff cuts. In 1987,

Preserving a brand Australia produced 89 per cent of the cars it used,

protected by a high 45 per cent import duty. However,
as Australia gradually reduced these tariffs, the pro-
Amicable Godrej split has a lot riding on it portion of locally produced vehicles decreased. Today,

T
with import tariffs at just 5 per cent, Australia imports
he Godrej group, over its 127-year history, has developed a remarkably nearly all of its cars. Major manufacturers like Nissan,

A Chinese invasion of
strong brand, by some estimates one of the 10 most recognised and Ford, General Motors, Toyota, and Mitsubishi, which
valued in the country. It has grown the value of its products, particu- once produced vehicles in Australia, have since closed
larly in consumer-facing sectors over the past decades. But it has their operations there.
done so while struggling on internal coordination and institutionalisation of The growth of the Indian automobile industry is

the auto landscape

family control. In fact, there’s no real “Godrej group” as such, uniting its various
enterprises. Efforts such as the creation of a family business board over a decade
ago did not quite pan out. In India, as tight leadership from the early founders
of a family-owned group gave way to multiple stakeholders with differing
visions in subsequent generations, this has often been a recipe for disaster.
However, the split in the Godrej family holdings that has just been announced
— which is said to be an “ownership realignment” — seems to be a relatively
assured due to the low number of cars per person;
only 22 out of 1,000 Indians own a car, compared to
980 in the US and 164 in China. Rising purchasing
power, increasing urbanisation, and government
initiatives also help. These are the key reasons for
As seen in Australia, tariff cuts may have an unwelcome global automakers' interest in India.
Current industry structure: About 70 per cent of
outcome for domestic car makers India’s passenger cars are made by companies con-
trolled by foreign firms like Suzuki, Hyundai, Kia,

T
low-impact and amicable manner of managing such disagreements. It seems
he Indian automobile industry is poised for
that, by and large, the shareholders in the listed Godrej companies would avoid disruption with the large-scale entry of
the wealth destruction that previous family disputes have caused. The various Chinese auto firms, especially in the electric
listed companies, including Godrej Consumer Products Ltd and Godrej Properties mobility sector. These changes will affect the fortunes
Ltd, will go to one side, run by the families of Adi and Nadir Godrej; their cousins of existing automakers, as well as jobs and imports.
Jamshyd Godrej and Smita Godrej Crishna will take Godrej Enterprises Group, In the next few years, Chinese companies could
dominated by the unlisted firm Godrej & Boyce. Many were interested, in par- make one in every three electric vehicles (EVs), along
withnumerouspassengerandcommercialvehicleson
ticular, in how management of the vast land bank in Vikhroli that the latter con- Indian roads, either directly or through joint ventures
trols would pan out. This land, an over 3,000-acre parcel that has been in the (JVs) with Indian firms. Just one JV between SAIC
family for almost a century, occupies an enviable position alongside the Eastern Motors(owneroftheMGbrand)andIndia’sJSWGroup
Express Highway in Mumbai. aims to sell over 1 million new energy vehicles by 2030.
The family did not address the question of this land’s future directly in its The JV wants to recreate the “Maruti Suzuki moment”
of the 1980s that revolutionised the Indian auto sector.
main press release; however, another press release struck a calming note by
SAIC Motors is one of the “Big Four” state-owned
insisting that Godrej & Boyce, as owner and developer, its subsidiary Godrej Chinese automakers. In 2007, SAIC
Construction, and Godrej Properties as the development manager and marketer, Motors acquired British car maker
would continue to collaborate on the land. Not all the land is suitable for devel- MG Rover’s assets after it went
opment, but 1,000 acres of Mumbai land would be enough to cause fatal acrimony bankrupt. It uses a plant in Halol,
in most families. It appears, fortunately, that the Godrej family has avoided that. Gujarat, previously owned by
General Motors, to produce vehicles
However, how this land will be developed — and whether the Adi Godrej side of
like the Hector and the ZS EV for
the family has lost out in terms of controlling its value — remains to be seen. the Indian market.
Given the size and environmental sensitivity of the land, as well as the scarcity SAIC Motors is not alone.
of real estate in Mumbai, there are deep questions of trusteeship and stewardship Chinese car company BYD (Build
at stake here that involve not just the family but also the people and government Your Dreams) Auto sells a range of
of the city. electric vehicles in India, as well as AJAY SRIVASTAVA
buses, trucks, cars, and sports utility
Extra value in any development of the land will come, in part, through trust
vehicles (SUVs). BYD entered the commercial vehicle
in the Godrej brand name. The broader question, thus, is how both these separated sector independently and through a partnership
entities — which will, apparently, continue to share the familiar Godrej brand with Megha Engineering under the Olectra brand.
and logo — can manage to retain the aura that the brand has acquired over the Recently, BYD has also started importing ready-to-
past century and more. In concrete terms, how will any one side manage situations drive cars in completely-built-unit (CBU) form.
in which it feels the other is diluting the shared brand value? In the absence of Similarly, Volvo cars are also being imported from
China in completely-knocked-down (CKD) kits.
any clear institutional framework, this will come down to goodwill.
Chinese companies like Changan Automobile,
JinkoSolar, and several bus and truck manufacturers,
including Zhongtong Bus and Foton Motor, contribute
roads are made using Chinese parts.
India provides much-needed relief for Chinese
firms. China’s EV exports to the European Union and
the United States are declining due to anti-subsidy
probes and increased trade restrictions on the export
of subsidised cars and EV batteries from China.
Indianautoindustry’simpressivecredentials: The
sector is the largest industrial ecosystem in India,
accounting for over one-third of the country’s manu-
facturing gross domestic product (GDP) and providing
20 million direct and indirect jobs.
India is the fourth-largest car producer in the world,
after China, Japan, and the US, having produced 4.6
million cars in 2023. It ranks tenth in car exports with
a 2.4 per cent global share. The turnover of India’s auto
and auto component industry exceed-
ed $150 billion in FY23. The export
figures were significant, with automo-
biles at $8.7 billion, two-wheelers at
$2.8 billion, and auto components at
$7.3 billion.
The Indian auto sector took a leap
in the early 1980s with a JV between
the Indian Maruti Udyog Limited and
the Japanese Suzuki Corporation.
Japanese technology and India’s
expertise in casting, forging, and fab-
rication enhanced the domestic auto
sector’s productivity by 250 per cent over the next 20
years and set it on a high growth path.
Subsequently, three government decisions shaped
the industry: The imposition of high import tariffs
ranging from 70-125 per cent on completely built
cars and motorcycles, but a low 7.5-10 per cent tariff
on parts and components to allow the import of
inputs; not cutting tariffs under the free-trade agree-
ments or FTAs; and allowing up to 100 per cent for-
eign direct investment through the automatic route.
Toyota, Honda, Ford, Skoda, Renault, Nissan, and
Mercedes. Key Indian firms are Tata Motors and
Mahindra & Mahindra. Emerging players in the EV
space, like Ola Electric and Ather Energy, are making
their mark.
The entry of top Chinese firms into the Indian
market will surely eat into the share of Japanese,
Korean, and European firms. They will also impact
the domestic auto/EV manufacturers, firms working
in the EV value chain space, and battery development.
NearlyaquarterofIndia’sautocomponentimports
come from China. India’s dependence on China will
increase sharply as more Chinese firms making cars in
India import most parts and components from China.
The government has reduced the import duty on
electric vehicles with a minimum value of $35,000
from 70-100 per cent to 15 per cent. Concessional
duty imports can be made only by original equipment
manufacturers (OEMs) that commit a minimum
investment of $500 million to set up local manufac-
turing within a three-year period. Such OEMs can
import up to 40,000 vehicles over a five-year period.
Such tariff cuts will benefit Chinese manufactur-
ers directly or indirectly, as they are the dominant
suppliers of EVs and batteries. Supply chain depen-
dence on China will sharply increase even when non-
Chinese companies (Tesla, Vinfast) set shop in India.
Recommendations: The government must pro-
mote investments in R&D on the next generation of
battery technology instead of subsidising EVs on the
road. The import intensity of EVs exceeds 70-90 per
cent, and most imports, including batteries, are from
China. With over 70 per cent of power being generated
from coal, EVs will not be green enough in India.
India needs to think strategically and long-term.
Automobile associations, caught between the com-
peting interests of foreign and Indian car makers
and import supporters, might not be effective in

Unfavourable conditions to China’s automotive presence in India. Additionally,

several others like Great Wall Motors and Haima
Automobile are looking to enter the Indian market.
While high import tariffs sheltered firms oper-
ating in India from external competition, the pres-
ence of many top global firms making cars in India
guiding the industry’s direction.

The writer is the founder of Global Trade Research Initiative

Moreover, e-rickshaws and two-wheelers on Indian ensured intense internal competition.
Workplace culture remains hostile for women (www.gtri.co.in)

O
ne of the less publicised aspects of the post-Covid bounceback in busi-

The ominous shadow of global debt

ness around the world is the lack of progress in improving workplaces
for women. This was the key message from consultancy firm Deloitte’s
global Women@Work survey, 2024. The report talks of an “uncomfort-

able truth” — that women’s progress is stagnating both inside and outside the
workplace. In particular, the transition to full-time work has resulted in difficult
adjustments for women. The survey covered 5,000 women across 10 countries,
including India, suggesting that the problem was more or less widespread. The
root of the problem appears to be uncongenial workplace environments. Almost
half the women reported higher stress levels than a year ago, only slightly lower
than the 53 per cent in 2022, when workplaces started returning to normal, and
about 40 per cent said they got mental health support from their employers, a
statistic almost unchanged over the three-year period. A greater point of concern
is the fact that only a third of women said they felt comfortable discussing their
mental health with their employers, down from 43 per cent in 2022. A key related
issue is the disproportionate burden that women bear of household responsibility.
Between 40 and 50 per cent of the women surveyed said responsibilities for child
care, domestic chores or caring for another adult devolved on them.
The evidence of the survey suggests that corporate cultures are still perceived
by women as fundamentally hostile. For instance, 95 per cent of women believed
that taking advantage of flexible work arrangements would negatively impact
career progression. Roughly a third reported being excluded from decision mak-
ing or interactions because of hybrid work arrangements and limited exposure
to leaders. Nearly half of women remain concerned about workplace safety, and
43 per cent said they experienced “non-inclusive behaviours” at work over the
past year — the bulk of it in the form of micro-aggression rather than outright
sexual harassment. That said, there were some positives that suggest the direction
of cultural reform at corporations. Though a concerning 27 per cent of women
said they did not feel comfortable speaking up on personal issues like periods,
menopause or fertility, only 15 per cent said they thought speaking up would
negatively impact their career progression, and 13 per cent said their company
culture did not encourage such openness about these topics.
It appears that more inclusive cultures remain in the minority. Deloitte
identified a group of Gender Equality Leaders, organisations that, according to
the women surveyed, created genuinely inclusive cultures. However, just six
per cent of the women surveyed work for one of these organisations. Such organ-
isations reported high levels of loyalty — including in the form of being recom-
mended to other women — and their employees were likely to stay with them
longer because they saw a path to career progression. The survey focused on
the corporate workplace. The concern for India, however, is that the poor stan-
dards in office environments translate into even worse conditions on factory
floors, where work cultures tend to be less sophisticated. But it is to the factory
as much as to the white-collar office that India needs to encourage women to
come. India’s unsafe and hostile factory environment is unlikely to achieve this
unless these institutions change their cultures too.
T
he clouds of a potential debt crisis are threat- risks starting a vicious cycle of financial instability tinderbox for social unrest, conflicts and geopolitical
ening to cast an ominous shadow over the by straining government finances, corporate balance frictions, disrupting trade and investment flows.
global economic landscape. The International sheets, and household budgets, choking off credit The Greek debt crisis inflamed tensions in the
Monetary Fund’s (IMF) latest Fiscal Monitor (April and investment — the lifeblood of economic growth. Eurozone, while Sri Lanka’s debt default fanned vio-
2024) has flagged grave concerns. Even four years Second, unsustainable debt levels will further wors- lent protests that led to a constitutional crisis. Such
past the Covid-19 outbreak, fiscal deficits and debts en sovereign ratings in many countries and constrain a breakdown of global order imposes systemic risks
remain elevated worldwide compared to pre-pan- governments’ ability to make productivity-enhancing far beyond any single nation’s finances.
demic projections. public investments. For example, Moody’s rates Italy, So what’s to be done? As the IMF rightly empha-
The IMF’s latest Global Debt Monitor, which sitting on a ^2.4 trillion debt pile (144 per cent of its sises, piecemeal solutions won’t cut it anymore. We
tracked data until December 2022, reported total GDP), just one notch above junk (investment) grade need a comprehensive, coordinated action plan to rein
global debt (private plus public) to have risen to $235 with a negative outlook. The debt burden has also left in the looming debt storm. For starters, governments
trillion, equivalent to 238 per cent of the global gross little fiscal space for public investments — so much — especially across the advanced economies — need
domestic product (GDP) — a good 9 percentage point so that Prime Minister Giorgia Meloni has embarked to articulate binding multi-year fiscal consolidation
above its pre-Covid level, driven primarily by the on a massive ^20 billion disinvestment plan for its road maps to restore debt sustainability over the medi-
mounting debts of economic powerhouses China national entities to avert economic stagnation. um term. However, as Greece’s experience showed,
and the US. Remarkably enough, Third, overleveraged corporations indiscriminate austerity may be self-defeating. Fiscal
China’s debt explosion, outpacing the will likely face heightened bankrupt- reforms should focus on boosting long-term revenue
rest of the emerging world, account- cy risks as economic growth falters streams and target unproductive expenditures.
ed for over half of the increase in and borrowing costs escalate. US cor- For corporations, deleveraging through retained
global debt ratios since 2008 — a porate debt has surged to nearly 80 earnings, asset sales, and tighter financial policies
sobering statistic that underscores per cent of GDP — double its level in aligned with stringent risk management shall be cru-
the gravity of the situation. the early 1990s. S&P Global forecasts cial. Regulators, too, must maintain a watchful eye,
The April Fiscal Monitor further default rates for below-investment- ensuring banks and shadow lenders build adequate
highlights that fiscal prudence may grade bonds to reach 4.75 per cent by capital buffers to absorb increased corporate defaults
take a back seat in 2024, the “Great the end of 2024. Such a wave of insol- without transmitting shocks across the financial sys-
Election Year,” when 88 economies, vencies could trigger mass layoffs, tem. For debt-distressed economies, timely and com-
representing more than half of the AMARENDU NANDY depressed consumer spending, and prehensive debt restructuring is imperative. This
world’s population, are scheduled to a severe credit crunch, throttling US shall require unprecedented coordination between
hold elections. Electoral compulsions leading to economic vitality with a global cascading effect. creditors like China, multilateral lenders like the IMF
populist measures and profligate spending (to woo Fourth, at the household level, countries like and World Bank, and private sector bondholders.
voters) could exacerbate deficits and debts globally, Norway, Denmark and the Netherlands have wit- From maturity extensions to haircuts, all options
compounding the looming debt crisis and jeopar- nessed household debt soar past 225 per cent of their must be pursued to restore fiscal sustainability.
dising long-term economic stability. disposable income. Such precarious household Finally, the global debt binge underscores anurgent
With the global economy settling into a new nor- finances portend drastic consumer spending cuts need to reform the international financial architecture.
mal of lower potential growth and tighter monetary amidst job losses or higher borrowing costs, thereby Building deeper and more liquid capital markets, har-
policy, the debt runup seems poised to regain fresh stifling aggregate demand. monising cross-border bankruptcy regimes, and ade-
momentum. The ramifications of excessive debt are Fifth, the debt crisis has also affected developing quately funding multilateral safety nets could go a
going to be far-reaching and potentially catastrophic. economies, accentuating their vulnerabilities. long way in preventing and containing future debt
First, as interest rates remain elevated to combat According to UNCTAD’s Trade and Development crises. This gathering economic storm necessitates a
lingering inflation, with the US federal funds rate Report Update (April 2024), nine low- and middle- response commensurate with its scale — a globally
now between 5.25 per cent and 5.5 per cent, its high- income countries (LMICs) had fallen into debt dis- coordinated, multi-stakeholder action plan accom-
est since 2007, the debt servicing cost will continue tress, with an additional 25 on the brink. In many modating national constraints while upholding debt
to spiral. Over the last decade, US interest payments LMICs, public external debt payments are consum- transparency, accountability and sustainability as core
have more than doubled, crossing $1 trillion in 2023, ing over a fifth of government revenues. A full-blown tenets of the policy responses. Further inaction and
driven by a record $34 trillion debt on its account. debt crisis in these vulnerable nations could reverse complacency risk unleashing the full destructive fury
In China, the debt-servicing burden is projected to decades of progress on poverty, disease, education of the burgeoning debt crisis. The time to act is now.
increase by 7.8 per cent to a record 1.27 trillion yuan and development.
($177 billion) in 2024. Such massive debt overhang Sixth, sovereign debt crises have proven to be a The writer is a professor at IIM Ranchi

Dr Subbarao’s book of revelations been recounted in this book. Its author

trainingperiodasanassistantcollector
wasabouttoend,therewereonlyten
suchcasestohiscredit.Hewasdesperate
topresideovertwomore.Acasewithtwo
meninvolvedinastreetbrawlappeared
toofferanopportunity.Inthenormal
BOOK REVIEW course,thiswouldhavebeensettled
mutually.Butthen,thecasewouldnot
A K BHATTACHARYA countasoneofthe“contested”caseshe
neededforcareerprogression.
lesson on the limitations of his
knowledge and powers as an IAS officer.
Aboutayearlater,afterthe
EmergencywasimposedbyIndira
Gandhi,thisofficer,postedinaNaxalite-
infesteddistrictofAndhraPradesh,
decidedtodeliverjusticeinawaythat
displayedhis“youthfularroganceand
enthusiasm”andblindedhimtotherisks
ofdisciplinaryproceedings.Hewould
is a well-regarded civil servant, who rose
to become the finance secretary at the
Centre and later served a five-year term
memoir, but a collection of notes from
his life and career. In the process, it
stands apart from his earlier book, Who
Moved My Interest Rate? which was an
his mother provides a peek not only
into his close personal equation with
his parents but also into how they
helped build his value system.
as the governor of the Reserve Bank of autobiographical account of his stint as However, the short insets on a wide
India (RBI). It requires courage and RBI governor. range of issues often disrupt the
candour to confess to such injudicious The structure of this book is different. narrative. Perhaps they could have
acts at the start of In short sections, he been made part of the larger storyline.
one’s career. Few civil JUST A MERCENARY? summarises how he Those who have read Who Moved My
servants would make NOTES FROM MY LIFE spent the first day Interest Rate? may not find anything
such disclosures. But
AND CAREER
and the last day as an substantially new in the short sections
Duvvuri Subbarao is Author: Duvvuri IAS officer and also as on his days as a central bank chief. This
an exception. His Subbarao RBI governor. He is an is understandable. But his account of
ability to look at Publisher: excellent storyteller. stint as finance secretary is lively and

I
n 1974, a bright young assistant col-
lector from the Indian
Administrative Service (IAS) did
something that, by his own admission,
was not straightforward. He had
topped the 1972 batch of IAS candi-
dates and reckoned that to enjoy the
powers of a magistrate as part of his
career advancement, he would need to
preside over at least a dozen disputes
that go through the process of argu-
ments and are not mutually settled
leading to their withdrawal, also known
as “contested disputes”.
Whatworriedhimwasthatashis
So he struck a deal with the lawyers in
which they would argue the case, at the
end of which the presiding officer would
let off both men on the premise that no
offence had been committed. It
appeared to be a workable deal until
conscience struck the young IAS officer.
Breaking the understanding he had
reached with the lawyers, he issued an
order sentencing the accused to one
month’s jail each. All hell broke loose.
The matter was referred to his
immediate boss, who ordered the officer
to take that judgement off the record and
rewrite it suitably. That episode offered a
employanovelmethodtopunishbig
farmerswhowouldholdstocksoffood
grainoverprescribedlimits.Sincemany
ofthemwouldexploitloopholesinthe
judicialsystemandgetstocksreleasedin
notime,hedecidedtoaskthesefarmers
todonateasignificantamounttothe
PrimeMinister’sReliefFundandbelet
offthehookinreturn.Thismethodwas
neitherrightnorlegalanditwassheer
goodluckthathewasnothauledupby
higherauthoritiesingovernment.
Many such riveting anecdotes that
bring to light the questions, doubts and
dilemmas that a civil servant faces have
himself and his work
dispassionately and
often in a self-
deprecating manner
makes his account
refreshing apart from offering insights
into how governments really function
in India at various levels. His account of
how his final interview for the IAS
examination, which was nothing short
of a disaster, is also an example of how
Dr Subbarao can laugh at himself.
This approach fits well with the
objective that the author set for himself.
Dr Subbarao describes the book not as a
Penguin Viking The drama and
Pages: 435+XVI suspense he creates
Price: ~799 while recounting how
he got to know of his
success at the civil
services examination or how he failed to
keep the rupee stable in spite of raising
the interest rate by one percentage
point will make many an accomplished
writer envious. His account of how he
had to deal with N T Rama Rao, then
Andhra Pradesh’s chief minister, is a
lesson on governance challenges for a
civil servant.
The last section written as a letter to
informative. His stance on the idea of a
“presumptive loss” of revenue in the
grant of telecom licences, also known as
the 2G scam, is a revelation of how two
senior IAS officers could take a different
view on how and why a government
could accept a revenue loss and under
what circumstances. What the reader
will miss is how as the finance secretary
he dealt with INX Media’s controversial
investment plan. But even without that
account, this book is a delightful read,
providing a deeper understanding of a
sensitive person with a clear sense of
what is right and what could be wrong.

Investor
HYDERABAD | rating and expects sustained weakness in
THURSDAY, 2 MAY 2024
BSE now corners a fifth
of derivatives mkt share
From 0 to 21% in less than a year, the bourse is making further strides
SAMIE MODAK
Mumbai, 1 May
B
SE (formerly Bombay Stock
Exchange) has seen its market
share go past the critical 20 per cent
mark in the derivatives segment, intensi-
fying its battle with bigger rival — the
National Stock Exchange (NSE) — which,
less than a year ago, had a monopoly in
this space.
In April, the average daily trading vol-
ume (ADTV) for BSE stood at ~89 trillion,
accounting for 20.6 per cent of the overall
ADTV of ~432 trillion (based on notional
volumes for options).
Last month, the ADTV for NSE saw a
month-on-month decline for the second
straight month to ~343 trillion, indicating
that the derivatives pie has stopped grow-
ing and some volume generators could be
moving to BSE.
Industry players said BSE’s derivatives
platform has been gaining wider accept-
ance among market participants. The
bourse now has 3.5 million unique inves-
tors, close to 400 brokers, and 100 foreign
portfolio investors (FPIs) trading on its
platform, along with several algorithmic
(algo) traders who are seen as active vol-
ume generators.
When BSE relaunched its Sensex and
Bankex derivatives contracts in May 2023,
it had the support of fewer than 10 brokers.
Market watchers say BSE, under the
leadership of its new managing director
and chief executive officer Sundararaman
Ramamurthy, has played its cards well.
To begin with, the bourse kept the
transaction charges and the ticket size for
Sensex and Bankex low. It also engaged
with brokers, software developers, and
algo traders to help boost its volumes. The
strategy to have different expiry dates for
different products also proved to be a hit,
as most volumes are generated on the day
the contracts expire.
The bourse still has many tricks up its
sleeve, and analysts see its market share
crossing the 30 per cent mark this financial
year (2024-25/FY25). To make further
inroads into the single stock derivatives,
BSE has announced a change in the expiry
date of monthly contracts to the second
Thursday of the month from the last
Thursday of the month — used by NSE.
The move is seen as a product differ-
entiation strategy that has worked in the
case of Sensex and Bankex. The bourse is
also targeting to increase the FPI count
and is in talks with more discount brokers
and algo traders to use its platform.
SHARE OF CO-LOCATION FELL IN MARCH
A smaller share of trading activity on
the stock exchanges came from
traders who seek to profit from
trading faster than anyone else. These
market players locate their servers
within the stock exchange premises in
a practice called co-location. This
reduces the amount of time that their
orders take to travel to the stock
exchange. They seek to profit on the
edge received from the fractions of a
second they thus save.
Co-location has been accounting
for a rising share of stock exchange
activity over the last few years. It
showed a rising trend in the most
recent periods. This now shows a
decline for the cash segment on the
BSE, and both the derivatives segment
and the cash segment on the National
Stock Exchange. The NSE derivatives
segment share of co-location in
trading activity dropped from 50.5 per
cent in February 2024 to 49.6 per cent
in March 2024.
The cash segment share dropped
from 36.1 per cent to 35.9 per cent in
the same period.
The BSE cash segment
co-location share in trading turnover
declined from 36.6 per cent to 30.2 per
cent, while it rose from 61.4 per cent to
66.1 per cent in the derivatives
segment.
Hitesh Hakani, director GreekSoft
Technologies says the dip in the share
of co-location may reflect a move
towards other modes of trading.
“Some corporate clients who were
opting for the co-location mode of
trading in February could have shifted
to the direct market access mode in
March,” he says.
The chief executive of an
algorithmic trading solutions
provider suggested that the
trend may not reflect a major change
in trading patterns. The share of direct
market access (DMA) in the mode of
trading at the NSE has increased from
11.48 per cent in January to 13.6 per
cent in March in the derivatives
segment and from 5.6 per cent to 7 per
cent in the cash market segment in
the same time.
Co-location, which was launched
by the NSE in 2010, is usually the
The Smart
BATTLE OF THE BOURSES
BSE has doubled its market share in five months
F&O stands for Futures and Options
In a recent note, HDFC Securities said
that led by growth in Bankex volumes,
BSE’s derivative ADTV could reach ~114
trillion in 2025-26 (FY26), and market
share could cross 30 per cent.
“We believe the derivative growth for
BSE will continue to be led by the scaling
of the Bankex contract, the go-live of large
discount brokers, a higher volume of algo
and proprietary traders, an increase in
active clients, and greater participation of
FPIs,” said Amit Chandra and Dhananjay
Jain, analysts at HDFC Securities in a note
a month ago.
However, BSE recently suffered a huge
blow when the market regulator, the
Securities and Exchange Board of India
(Sebi), clarified that the bourse has to pay
regulatory fees on the annual turnover
based on the notional value of the options
SHARE IN NSE SHARE OF
DERIVATIVES DIPS DIRECT MARKET
BELOW 50% ACCESS RISES
Share of co-location in Share of DMA in total
total turnover (%) turnoverattheNSE(in%)
nDerivatives nCash nDerivatives nCash
51.5 50.5 49.6 12.3
11.5
34.9 36.1 35.9
5.6
Jan‘24 Feb‘24 Mar‘24 Jan‘24 Feb‘24
Source: Sebi, NSE
LARGER SHARE IN BSE CASH SEGMENT
Share of co-location in total turnover (%)
nDerivatives nCash
Jan‘24
40.7
Feb‘24
36.6
Mar‘24
30.2
Source: Sebi, exchange
domain of institutional investors who l
ocate their servers on the site of the stock
exchange, in exchange for a fee, to cut down on
latency and trade that much faster.
The speed of information transfer through co-
location ensures that a lot more orders can be
executed in shorter time intervals.
Co-location on the National Stock Exchange has
been seeing increased demand, noted managing
director and chief executive Ashishkumar Chauhan in
a February 12 call with investors.
COMPILED BY SAMREEN WANI
QUICK TAKE: NEAR-TERM GROWTH WORRIES FOR JUBILANT FOODWORKS
(Share price in ~)
ILLUSTRATION: BINAY SINHA
Source: NSE, BSE
contract and not on premium turnover.
For 2023-24, BSE has said it will have
to pay ~96.3 crore as the differential Sebi
regulatory fee. The higher fee outgo is
expected to weigh on its profit growth esti-
mates for FY25 and FY26 by about 18 per
cent. To cushion the blow, BSE has raised
the transaction charges on Bankex and
Sensex options by upwards of 30 per cent.
Investec, in a note, has said NSE’s trans-
action charges are currently 40 per cent
higher than those of BSE, and a 35 per cent
increase in transaction charges will bring
it in line with NSE and more or less
allow it to ensure that profitability
remains intact. However, it remains to be
seen how the higher transaction charges
impact its volumes and alter the dynamics
with NSE, which still offers a much larger
liquidity pool.
Bitcoinfacesworstmonthsince ManpasandBeverages,
FTXcrashwithETFdemandcooling 3execsbannedfor3years
The prospect of higher-for-longer interest rates
is weighing on crypto, underlined by deepening
Bitcoin losses after the token’s worst monthly
drop since the collapse of Sam Bankman-Fried’s
FTX empire in November 2022.
The largest digital asset slumped
almost 16 per cent in April as a mania
for US spot-Bitcoin exchange-traded
funds flatlined after earlier lifting the
token to a record high of almost
$74,000 in March.
Tuesday’s debut of Bitcoin and Ether
ETFs in Hong Kong also failed to provide a
tailwind. Trading volume for the six vehicles
totaled $12.7 million on the first day, sizable
locally but smaller than the $4.6 billion achieved
13.6
Havells: Positive outlook priced in
6.2 7.1
DEVANGSHU DATTA
Good results for the
Mar‘24 January-March quarter
Source: Sebi, NSE (Q4) of the financial year
2023-24 (FY24) and the
promise of seasonal
demand for cooling have
led to a positive outlook on
64.7 Havells. The Q4FY24 Ebitda
(earnings before interest,
61.4 tax, depreciation and amor-
tisation) and PAT (profit
66.1 after tax) beat consensus
due to a positive ~37 crore
Ebit (earnings before inter-
est and tax) in the Lloyd
business (vs ~23 crore loss in
Q4FY23). The revenue
growth of 12 per cent year-
on-year (Y-o-Y) was in-line
and led by ECD – electrical
consumer durables (up 21
per cent) and Cables (up 14
per cent) segments. The
B2B portfolio continues to
do well due to industrial &
infrastructure demand.
Better cash position – there
In the last 10 years, Nifty returns are about 12%
annualised with high volatility. Best-case outlook
The stock of Jubilant FoodWorks is for the next 10 years is 8-12% annualised (pre-tax).
up 4 per cent over the past week. HDFC Bank and good NBFC fixed deposits offer
Securities, however, has given it a 'reduce' 8-8.5% (pre-tax) with no volatility.
Which should one prefer for the bulk of
demand for QSR. It expects the same-store one's liquid investments?
sales growth for the company to fall 3.5 per SHANKAR SHARMA
cent in the March quarter. Founder, GQuant Investech
<
Cut in face value of corporate
bonds to deepen debt market
ANJALI KUMARI
Mumbai, 1 May
BOOSTER DOSE Nomination to be
The recent decision by the
Full-yearmobilisationthrough
debtprivateplacements(~cr)
optional for joint
Securities and Exchange Board
1,200,000 MF portfolios: Sebi
of India (Sebi), to reduce the
face value of corporate bonds Sebi made the nomination
997,804
from ~1 lakh to ~10,000 is optional for jointly-held
1,000,000
expected to make bond invest- mutual fund accounts in a bid
ments more appealing and
474,757 to promote ease of doing
attainable for a broader spec- 800,000 business. It also allowed fund
trum of retail investors, said houses to have a single fund
market participants. manager to oversee
In October 2022, the Sebi 600,000 commodity and foreign
had reduced the face value of investments, which would
corporate bonds to ~1 lakh from reduce the managing cost.
~10 lakh. “As more than 90 per 400,000 These came after a working
cent of the issued corporate 2014-15 2023-24 group constituted by Sebi
debt is privately placed, reduc- Source:primedatabase.com reviewed MF regulations. PTI
tion in face value of such debt
will accelerate the retailisation
of the corporate bond mar- redemption date. Previously, may be restrictions that can be according to data compiled by
kets,” said Vishal Goenka, co- the date for determining who imposed in the interest of Prime Database. This capital
founder of IndiaBonds.com. is eligible to receive interest or investors to avoid mis-selling, was raised by 904 institutions
“Currently, there exists a principal repayments on non- where they might cap the rat- and corporates.
cumbersome process for iden- convertible debentures (record ings up to AA for a lot size of The highest mobilisation
tifying and communicating date) could differ depending on ~10,000. And the issuer should through debt private place-
record dates to investors as the issuer. However, a segment have a minimum outstanding ments was by Nabard, amount-
there is a large variance in prac- of the market advocated for of ~20,000-25,000 crore,” said ing to ~51,855 crore, followed by
tices. Standardising this period regulatory measures to impose Vinay Pai, head of fixed income REC with ~48,976 crore, and
streamlines the industry, pro- reasonable restrictions on the at Equirus Capital. HDFC with ~46,062 crore.
vides clarity to investors and criteria such as outstanding Funds raised through debt With easier access to bonds,
makes the bond markets more amount and issuer ratings, private placements in financial retail investors can seamlessly
efficient,” he added. aiming to mitigate the risk of year 2023-24 amounted to ~9.41 integratethemintotheirportfo-
Sebi has also standardised mis-selling. trillion, marking a 10 per cent lios, leveraging benefits such as
the record date to 15 days prior “The regulation is good, but increase from ~8.52 trillion in consistent income and reduced
to any interest payment or there should be caution. There the financial year 2022-23, volatility compared to stocks.
RISING THRESHOLD FOR TOO BIG TO SAIL
LARGE, MIDCAPS Threshold for large- and mid-cap
doubled in last 3 years Cutoff (~ cr)
CALLS FOR TWEAK
IN METHODOLOGY
*June 2024 figures are estimates
Source: Amfi and brokerage reports
Domesticmutualfundsarefacinga formula,thetop100companiesby fromthestocksthatrankbetween101
uniqueproblem—‘largecaps’have mcaparelargecaps,thenext150are and250.Industryexpertsbelievethat,
become‘megacaps’while‘midcaps’ midcapsandtheremainingsmallcaps. giventheexponentialgrowthinthe
haveturned‘largecaps.’Basedonthe Thiscategorisationisimportantasa domesticequitymarketspost-Covid,
averagehalf-yearlymcap,MFindustry schemeinthe‘largecap’categoryhas thereisareasonforarelook.They
bodyAssociationofMutualFundsin tolargelychoosefromtheuniverseof suggestthatthelargecapbasketcan
Indiapublishesalistoflarge,midand these100stocks.Similarly,a‘midcap’ nowincludethetop125-150stocks
smallcaps.AccordingtotheSebi’s schemehastoallotbulkofitsportfolio insteadofjust100. SAMIE MODAK
Markets regulator Sebi has moter, chairman & managing
by the US products when they went live in barred Manpasand Beverages director Dhirendra Singh, pro-
January, according to Bloomberg Intelligence. and its three executives from moter and executive director
A case is building for the Federal Reserve to the securities markets for three Abhishek Singh and chief
signal a delay in rate cuts after officials conclude years and imposed a penalty financial officer Paresh
a policy meeting Wednesday. The latest US totalling ~68 lakh on them for Thakkar. Also, these four
data highlighted a climb in labor costs, manipulating and mis-stating entities have been fined ~17
adding to evidence of inflationary the company’s financial state- lakh each, which needs to be
pressures. Real yields — seen as the ment. In its order, the regulator paid within 45 days, Sebi said.
true cost of money for borrowers — said that the financial state- Dhirendra Singh, Abhishek
are jumping, a tough backdrop for ments of the company were SinghandPareshThakkarhave
speculative assets like digital tokens. manipulated and mis-stated been prohibited from holding
The recent moves higher in for financial years 2018-19 and positionofdirectororkeyman-
Treasury yields and real rates have been 2019-20. agerial personnel in any listed
“toxic for gold, Bitcoin and US equity,” Chris
Weston, head of research at Pepperstone Group
Apart from Manpasand
Beverages, those restrained by
public company or any inter-
mediary registered with Sebi in
Ltd., wrote in a note. BLOOMBERG Sebi are — the company's pro- any capacity for five years. PTI
THE COMPASS
has been ~900 crore rise in saw volume growth of 18 o-Y (lower than category).
cash levels in FY24 to ~3,020 per cent Y-o-Y in Q4 and 15 Management, however,
crore - will support capex per cent in FY24. The light- does not see loss of market
plans. Earnings expecta- ing segment (revenue up 5 share. There were no price
tions for FY25 are being per cent Y-o-Y; Ebit margin hikes in H2FY24. A broad
upgraded by analysts due to at 18.2 per cent) continued portfolio (RACs, refriger-
the upside in Lloyd and to be impacted by price ators and washing
possible other income on deflation, despite volume machines) and in-house
the cash stash. FCF (free growth. Havells is building manufacturing should
cash flow) is expected to be capacity in B2B lighting and enable sustained growth.
strong despite continued in kitchen appliances which Retail demand in April
capex of ~700-800 crore. will be launched initially surged in the south, east,
The RoCE (return on capital with outsourcing. and west, while the north is
employed) could be in the Management sounded expected to pick up in May.
range of 30 per cent for the optimistic about growth in There is a possibility of
next two financial years FY25. After ~790 crore capex price hike in Q1FY25 espe-
(FY25 and FY26). in FY24 towards capacity cially since raw material
The Q4FY24 Ebitda healthy, and industrial addition in cable, lighting costs are inching up. The
margin expanded 186 basis demand robust, cables and and Lloyd, it plans ~800 projections are for a 100
points (bps) quarter-on- wires and switchgear will crore capex in FY25 basis points (bps) rise in
quarter (Q-o-Q) to 11.7 per continue to do well. The (mainly on core products). PAT margins in FY25 over
cent mainly due to Lloyd’s ECD (revenue up 21 per cent In cables, about 25 per cent FY24, and a 150 bps rise in
positive Ebit. Hence, Ebitda Y-o-Y; Ebit margin of 11.3 additional capacity is Ebitda. EPS could grow 30
and PAT increased 20 per per cent) growth was driven expected to be commis- per cent in FY25, and by
cent and 25 per cent Y-o-Y, by summer products like sioned by June 2024. another 25 per cent in FY26.
respectively. The cash gen- fans. Price hikes may be on In Lloyd, cost saving and The major concern for
eration was aided by an the anvil in Q1FY25. Cables business efficiency meas- investors is that the current
inventory mop-up. (revenue up 14 per cent and ures drove Ebit while Q4 PE (last four quarters) is at
Assuming B2B stays Ebit margin at 12 per cent) revenue grew 6 per cent Y- 83x, which is very high.
.
HYDERABAD | THURSDAY, 2 MAY 2024 11
<
12
>
HYDERABAD | THURSDAY, 2 MAY 2024 1
.
HYDERABAD | THURSDAY, 2 MAY 2024 13
<
 14 CHAMPIONS OF INVESTOR TRUST
>
HYDERABAD | THURSDAY, 2 MAY 2024

10 stocks that get institutional seal of approval

Equity investments by foreign portfolio
investors (FPIs) and domestic institutional
investors (DIIs) in the Indian market have FPI*
shown a mixed trend over the past six 21,928
months. While foreign investors withdrew
money in two months during this period,
including April, domestic institutions
remained consistent and were net buyers.
Cumulative flows by FPIs during this
period amount to ~75,000 crore, while
-35,975
those of DIIs are 2.4 times higher,
totalling just under ~1.8 trillion. Jan ‘22
*Until April 29, 2024
Instances of withdrawals for domestic Compiled by BS Research Bureau
investments have been few, with negative
flows/outflows recorded in four months of the past 28. In April, FPIs
turned sellers due to the rise in crude oil prices and US bond yields.
Given that institutional investors have substantial holdings in
EQUITY INVESTMENT midcap and largecap companies and their
actions play a major role in price trends,
DII (~ crore) 80,000 RAM PRASAD SAHU examines the
44,186 S&P BSE 200 group of stocks in which the
40,000 two investor categories have shown the
most confidence. The 10 stocks on this list
0 have witnessed at least four consecutive
quarters of an increase in shareholding
-40,000 by FPIs or DIIs, respectively.
-8,671 In the FPI list, except for Mankind
-80,000 Pharma, the shareholding of foreign
Apr ‘24 investors is higher than 20 per cent. For
Sources: NSDL, exchanges the DII group of stocks, the highest
shareholding is in Voltas at 40 per cent,
followed by Delhivery at just under 20 per cent. Except for Star
Health, most stocks have delivered double-digit returns in the
past year, with Indus leading the pack with gains of 129 per cent.
ILLUSTRATION: BINAY SINHA

FOREIGN PORTFOLIO INVESTORS

Ashok Leyland AsonApril30,2024
Share 1-yr Target
TTM
Net
EPS(~)
Cholamandalam Mankind Pharma
Mcap price chg price sales EPS P/E(x)
n After strong growth in the AsonApril30,2024 TTM EPS(~) AsonApril30,2024 TTM EPS(~)
(~cr) (~) (%) (~) (~cr) (~) FY25E FY26E FY25E
medium and heavy FPIs stake (%) 23 Share 1-yr Target Net Share 1-yr Target Net
commercial vehicles industry 22.6 56,554 193 32.0 199 45,219 8.1 10.0 10.8 19.2 Mcap price chg price sales EPS P/E(x) Mcap price chg price sales EPS P/E(x)
over the past three years with (~cr) (~) (%) (~) (~cr) (~) FY25E FY26E FY25E (~cr) (~) (%) (~) (~cr) (~) FY25E FY26E FY25E
an annual growth of 18 per 21 may do well, says Nuvama Research
100,301 1,194 37.0 1,322 19,140 41.1 51.4 64.7 23.2 94,779 2,366 - 2,200 9,946 43.1 54.8 66.0 43.2
cent, some moderation is n An added demand trigger for Ashok Leyland is defence
16.2
likely in the near term 19 orders, which are expected to take the revenues from that n One of the leading domestic FPIs stake (%)
vertical from ~300 crore in 2022-23 to about ~800 crore in 12
n Positive macros and pharmaceutical majors,
infrastructure spends should 2023-24, estimate analysts Mankind Pharma is the
17 9.9 8
sustain growth in 2024-25. n Net pricing is expected to stay healthy in the near term, fourth largest in terms of
Within commercial vehicles, given the price hike of 1.5-2 per cent by the sector and value and third largest
categories such as bus,
15 stabilising average discounts. This is a positive for the firm in volume share of the 2.6 4
Jun ’22 Mar ’24
tractor-trailer, and tipper eyeing a mid-teen margin ahead of the 11-12 per cent levels Indian market
n The company’s focus on 0
increasing its share of

Indian Hotels Company Supreme Industries

chronic drugs is expected to
boost its gross margin. Mar ’23 Mar ’24
Growing its presence in dia-
AsonApril30,2024 TTM EPS(~) As on April 30, 2024 TTM EPS(~) betes, respiratory, central
Share 1-yr Target Net Share 1-yr Target Net nervous system, and urology, among others, is expected to
Mcap price chg price sales EPS P/E(x) Mcap price chg price sales EPS P/E(x) help take the chronic share rise to 50 per cent in the long
(~cr) (~) (%) (~) (~cr) (~) FY25E FY26E FY25E (~cr) (~) (%) (~) (~cr) (~) FY25E FY26E FY25E term from 35 per cent in the nine months of 2023-24
82,096 577 70.2 610 6,769 8.9 11.7 13.9 49.4 64,499 5,078 86.8 4,755 10,134 84.2 122.3 143.4 41.5 n The non-banking financial FPIs stake (%) 28 n JP Morgan has an ‘overweight’ stance on Mankind, given a
company has delivered its
higher revenue growth forecast in the domestic business
n The management of hospi- n Riding on strong demand, best‐ever payouts, collec- 26.4
25.3 aided by thrust from modern trade, e-commerce,
tality major Indian Hotels
FPIs stake (%) 25.5 26 Supreme Industries
FPIs stake (%) 26 tions, and profitability in
24 and hospital channels and guidance of double-digit
Company is eyeing double- delivered a 41 per cent the fourth quarter of 2023-
growth in exports
digit growth in revenue per volume growth in the pipe 24. Net income was 41 per 18.4
cent year-on-year while net n New launches in the US can potentially offset declines in
available room for 2024-25 22 segment in the January- 22 one-off opportunities, and pricing growth in domestic
on a high base, led by the 15.8 March quarter of 2023-24. profit was up 24 per cent 20
16.3 over the year-ago period business is expected to remain healthy in 2024-25
opening of 25 new hotels The segment accounted for
despite no pricing growth in the National List of
that can add 3,500 rooms, 18 over 80 per cent of the 18 n Cholamandalam
16 Essential Medicines portfolio
and new businesses growing company’s overall volumes Investment and Finance
at over 30 per cent on-year Company is a well- Jun ’22 Mar ’24
n Given the robust demand
n The uptrend in the hospi- traction, it has guided for managed franchise and has
14 14
tality industry, according to Jun ’22 Mar ’24 overall volume growth of Jun ’22 Mar ’24 displayed agility in moving across segments to grow ahead
Motilal Oswal Research, is 20 per cent, with the pipe of the industry with no major asset quality issues, says
expected to continue, with all-India demand growth likely segment expected to grow by 25 per cent in 2024-25 Centrum Research
to be 10.6 per cent from 2023-24 (FY24) through 2026-27 n Geographic expansion through brownfield projects n Repricing of automobile loans will help offset a higher cost
(FY27) compared to supply growth of 8 per cent and setting up new plants at Patna and Vijayawada of funds and support steady net interest margins, while
n Revenue and operating profit of the firm are expected are key positives return on assets can rise 20 basis points from 2023-24
to grow by 13 per cent and 17 per cent, respectively, (FY24) through 2025-26 (FY26), says Jefferies Research
n YES Securities is bullish on Supreme’s growth prospects,
during FY24-27 given healthy demand from agriculture, infrastructure, n Earnings are expected to rise at an annual growth of
n Growth, according to JM Financial Research, will be led and plumbing segments, coupled with a focus on 30 per cent during FY24-26, estimate analysts
by a robust development pipeline (80 per cent of which is expanding market share via adding more stock- n Over 70 per cent of analysts polled by Bloomberg are
asset-light), strong traction in new brands, and expansion keeping units, finding newer applications (such as gas bullish on the stock; their target price indicates
into newer categories/businesses distribution), and increasing its distribution network over 10 per cent upside potential

DOMESTIC INSTITUTIONAL INVESTORS

Star Health & Allied FSN E-Commerce Indus Towers Delhivery
Insurance Co Ventures (Nykaa) AsonApril30,2024
Share 1-yr Target
TTM
Net
EPS(~) AsonApril30,2024
Share 1-yr Target
TTM
Net
EPS(~)

Mcap price chg price sales EPS P/E(x) Mcap price chg price sales EPS P/E(x)
AsonApril30,2024 TTM EPS(~) AsonApril30,2024 TTM EPS(~) (~cr) (~) (%) (~) (~cr) (~) FY25E FY26E FY25E (~cr) (~) (%) (~) (~cr) (~) FY25E FY26E FY25E
Share 1-yr Target Net Share 1-yr Target Net
Mcap price chg price sales EPS P/E(x) Mcap price chg price sales EPS P/E(x) 95,616 355 129.2 311 28,060 20.7 22.1 24.2 16.1 33,084 449 20.0 535 7,926 -4.6 0.4 4.7 1,013.4
(~cr) (~) (%) (~) (~cr) (~) FY25E FY26E FY25E (~cr) (~) (%) (~) (~cr) (~) FY25E FY26E FY25E
n The company is a market
33,446 571 -3.4 647 12,938 14.5 19.6 23.2 29.2 50,469 177 44.0 178 6,019 0.1 0.7 1.4 249.6 DIIs stake (%) 19.6 20
leader in India’s business-
n Star Health & Allied n Nykaa’s pre-quarter update to-consumer express divi-
DIIs stake (%) 30 DIIs stake (%) 20 sion (outsourced pie) with a
Insurance Co has the largest for the fourth quarter (Q4) 16
retail health insurance share 27.2 indicates sustained momen- 17.2 market share of 21-22 per
16 cent, nearly twice that of 6.8
based on gross written pre- tum for the beauty and per- 12
mium (GWP). In FY24, the 20 sonal care segment with the nearest competitor
company’s retail health mar- gross merchandise value
12 n Delhivery is better placed
ket share stood at 33 per cent 11.2 (GMV) growth at 30 per cent 3.0 than peers, given its low 8
8
n It highlighted that the 10 and fashion GMV growth in customer concentration
GWP growth in FY24 was a the high twenties 4 risk of less than 15-16 per 4
result of strong retail health n Overall, GMV growth has cent, scale and reach in Jun ’22 Mar ’24
insurance demand that the 0 been strong and crossed 0 Tier-II and Tier-III cities
company capitalised on Jun ’22 Mar ’24 30 per cent after three Jun ’22 Mar ’24 (18,500 pincodes), and has the lowest cost advantage,
through one of the largest quarters (on a high base of says Elara Securities
agency networks, its strong digital channel sales, and 36 per cent last year). The performance is relatively n A healthy balance sheet with a cash surplus of
collaborations with banks and financial institutions superior to other discretionary companies, given the ~4,600 crore as of September 2023 to fund working
n Loss ratios improved 356 basis points sequentially to sustained demand weakness in Q4, says Axis Capital capital and growth is an added positive
64.1 per cent as the impact of price hikes kicked in, n With competitive intensity moderating and working n While the thrust on its own logistics service is likely to
and seasonal illnesses abated, driving the normalisation capital stabilising (at a higher level), a key driver ahead impact volumes in the near term, operating leverage and
of loss ratios shall be margin delivery, says Nuvama Research. The the sustenance of incremental gross margins around
n Nuvama Research says it is enthused by Star Health’s brokerage has built in a 400-basis point operating profit 50 per cent in transportation could lead to breakeven at
improving commentary and focus on growth, with margin expansion from 2023-24 through 2025-26 n The successful follow-on DIIs stake (%) the net profit level in 2024-25, says Emkay Research
public offer and efforts to 12
targeted improvement in loss ratios n Key levers for the company include a revival in
advertising income, moderation in marketing spends, raise debt by Vodafone Idea
n Seventy per cent of the analysts covering the stock (Vi) have removed a key 9.9
have a ‘buy’ rating on the insurer and operating leverage
overhang on the recovery of 8
dues for Indus Towers, 3.0
Voltas
which offers its telecommu-
AsonApril30,2024 TTM EPS(~) nication towers on a rental 4
Share 1-yr Target Net basis to Vi and Airtel
n Voltas indicated that its Mcap price chg price sales EPS P/E(x)
DIIs stake (%) 42 (~cr) (~) (%) (~) (~cr) (~) FY25E FY26E FY25E n IIFL expects Vi to raise its
volume growth in room air
40.6 mobile broadband location 0
conditioner (RAC) was 48,806 1,475 84.6 1,196 11,152 8.5 23.3 30.1 63.4 count from the current Jun ’22 Mar ’24
71 per cent year-on-year in 38
given the low penetration level in India, rising income 170,000 to 250,000 over the
the fourth quarter of 2023- 29.5
levels, and thus, aspiration of middle-income group and next two years. It expects Indus to garner 80 per cent of the
24 (FY24) and it has been
gaining market share in the
34 rising heatwaves across the globe same, which should boost its tenancy ratio to 1.95 times
from the current 1.7 times
quarter (FY24 share expec- n UBS Research believes that Voltas has reworked its supply
ted at 22 per cent) after los- 30 chain in the RAC segment, further optimising its cost n A key trigger would be the resumption of dividend pay-
ing share over 18 months structure. With reducing costs, it will be difficult for new ment, which was suspended due to Vi’s receivables issue
n Motilal Oswal Research 26 entrants to match Voltas, leading the industry into the n If Indus reinstates its dividend policy of paying out
believes that RAC is a Jun ’22 Mar ’24 early phases of consolidation and potential market-share 100 per cent of its free cash flow, the same could
long-term structural story, gains for Voltas, says the foreign brokerage translate into a dividend yield of about 6 per cent

E: Estimates, TTM: Trailing 12-month, EPS: Earnings per share, P/E: Price-to-earnings, ~ crore and price figures rounded off; compiled by BS Research Bureau Sources: Capitaline, Bloomberg
.
HYDERABAD | THURSDAY, 2 MAY 2024 TAKE TWO 15 <

NOT SO SWEET ANYMORE

HowIndia’srelationshipwithsugaristurningsour
SHARLEEN D'SOUZA & AKSHARA SRIVASTAVA influencerRevantHimatsingka,who NestleIndia. sugar,“whichiswhytheallegation
Mumbai/New Delhi, 1 May goesby"Foodpharmer"onInstagram, Earlier,aNestleIndia aboutNestleaddingsugartoCerelac

S
ixsummersago,Cadbury,
ownedbyMondelez,
unveiledacampaignforits
DairyMilkchocolate
brandtomarkits70thyear
inIndia:“Kuchhachchhahojaye”.
ThatisHindifor“letsomethinggood
happen”.Itbuiltonalong-running
campaignwhosetaglinewas,“Kuchh
meethahojai”,orlet’shavesomething
sweet.
Boththecampaignswererootedin
theIndianpsyche,wherefor
centuries,sweethasbeen
synonymouswithcelebration.
Notsomuchanymore.
Today,achchha(good)isbeing
separatedfrommeetha(sweet).
Withrisingincomes,education,
andhealthawarenessinIndia,
especiallyinthebigcities,drovesof
peoplearesayingnotosugar.Andthe
impactisbeingfeltbymultinational
aswellasindigenousbrandsmaking
beverages,beveragemixes,and
confectionariesthathavehighsugar
content.
Itisnocoincidencethatthiscomes
atatimewhenIndia,whichhashad
itsbattleswithpovertyand
malnutrition,isnowalsofacingthe
risingmenaceofobesityandlifestyle
diseasessuchasdiabetes.
“Indiafacesaseverepublichealth
crisisofobesityanddiabetes,”stateda
reporttitledTheJunkPush,jointly
broughtoutbytheBreastfeeding
PromotionNetworkofIndiaand
NutritionAdvocacyinPublic
Interest-India(NAPi),athinktank.In
2023,agroupofpublichealthexperts,
consumers,lawyers,andpatient
groupshadcalleduponthe
governmentofIndiatocheckthe
soaringconsumptionofjunkfood
amongthecountry’syouth.
Onthebackfoot
Bournvita,whichlikeDairyMilkisa
Mondelezbrand,ranintocontroversy
inAprillastyearwhensocialmedia
OPINION
flaggedthesugarcontentintheitand
questioneditspositioninthemarket
asa“healthdrink”.
Theproduct’spacksaysthatitisa
cereal-basedbeveragemix.Its
ingredientsincludeextractsofbarley,
millets,andwheat,alongwithsugar,
cocoasolids,andmilksolids,among
others.
Afewmonthson,thecompany
reducedaddedsugarsintheproduct
by14.4percent.Ithasalsointroduced
avariantwith50percentlesssugar.
Thecontroversygotanewlife
whentheMinistryofCommerceand
Industriesissuedanadvisoryto
ecommercecompaniesonApril10to
removedrinksandbeverages,
includingBournvita,fromthe“health
drinks”categoryontheirportals.This
cameaftertheNationalCommission
forProtectionofChildRights,afteran
inquiry,concludedthattherewasno
“healthdrink”definedunderthe
FoodSafetyandStandardsAct2006.
Theordercamedaysafterthe
FoodSafetyandStandardsAuthority
ofIndia(FSSAI)advisedecommerce
platformstoensurethatdairy-,
cereal-,andmalt-basedbeverage
mixeswerenotavailableunderthe
“healthdrinks”or“energydrinks”
category.
TheBournvitachatterwasstill
goingonwhenSwissNGOPublicEye
allegedthatNestle,theSwiss
multinational,wasaddingsugarand
honeytoitsinfantmilkandcereal
rangesoldinlow-andmiddle-income
countries.
OnMonday,NestleIndiasaidthe
formulationofinfantfoodproducts
likeCerelacwasdoneonthebasisof
globalnormsandsugarsaddedtothe
productwerewithinthelimitssetby
thelawandFSSAI.
“Everyformulationofthe
companyisdoneonaglobalbasis.
Thereisnolocalapproachtomakinga
nutritionaladequacystudy,itisdone
globally,”saidSureshNarayanan,
chairmanandmanagingdirector,
spokespersonhadsaidinastatement:
“Reductionofaddedsugarsisa
priorityforNestléIndia.Overthepast
fiveyears,wehavealreadyreduced
addedsugarsbyupto30percent,
dependingonthevariant.”
Afewdaysago,Hindustan
Unileverrenamedits“healthfood
drinks”to“functionalnutritional
drinks”,puttingpopularbrandssuch
asHorlicksandBoostunderthenew
category.
Mondelez,Nestle,HULandothers
willfindempathywiththeirfellow
multinationalssuchasCoca-Colaand
Pepsi,bothofwhichhavebeenfeeling
theriseofhealth-consciousnessand
havebeentryingforyearstodevelop
categoriesotherthansugarysoft
drinks.Mostnotably,IndraNooyi
whowastheCEOofPepsiCofor12
yearsuntil2018,tookthecompany
intosnacksandfooditems,twoofthe
highlightsbeingoatmealandsports
drink.
Itisnotjustthemultinationals.If
youhearthechatterontraditional
mediaaswellassocialmedia,doctors,
advisors,andinfluencersarewarning
peopleabouttheilleffectsofsugar,
andfoodsanddrinksfilledwithsugar,
includingpackagedjuices.Theseare
areaswhereseveralIndian
companieshavealargepresence.
Anecdotally,fitness-conscious,
headphone-wearingyoungfolksin
India’sbigcitiesareshunningthe
threeso-calledwhitepoisonsinthe
kitchen:Salt,maida,and–ofcourse–
sugar.
Policyperspective
Therecommendedsugarintakeis20
gramsadayforadultsand25gramsa
dayforthosebelow18.Notmorethan
5to10percentofaperson’stotal
energyintakeshouldcomefrom
sugar.However,thislimitisoften
breachedbecausepeopletendto
consumepackagedfoods.
Childrenundertwoarenot
supposedtoconsumeanyadded
on the analysis of asymmetric
issoconcerning,”saysManoliMehta,
aDubai-basednutritionistand
clinicaldieticianwhoalsoconsultsin
Mumbai.“Itisimportantthatpeople
areeducatedaboutreadinglabelson
foodpackets.”
Sheaddsthatfront-of-the-pack
nutritionlabellingcanbeaboon.
ArunGupta,apaediatricianand
convenor–NutritionAdvocacyin
PublicInterestIndia,athinktank,
sayspolicyinterventionisneeded.
“Sugarisaworldwideproblemand
Indiaisahugemarketforglobalfood
productsandhencebecomesa
target,”hesays.“Alackof
comprehensivelegalframework
preventsactionagainstsuchproducts
containinghighdosesofsugar.The
underlyingproblemisnotthesugar
contentbuttheclassificationof
productsashealthyorunhealthy;the
labelingoftheseproductsinthat
manner;andtheiradvertisement,
whichshouldbeonthebasisoftheir
contents.”
FSSAIiscurrentlyconsideringthe
introductionoffront-of-the-pack
nutritionlabellingandislookingat
therecommendationsbycompanies
andindustrybodies,accordingtoa
personintheknow.Ithasreceived
morethan10,000recommendations.
Twootherpersonsprivytothe
developmentssaythegovernment
doesnotwanttodependonthe
westerncountriesforguidanceon
dietaryrecommendationsforIndians
astherequirementsherediffer.
InSeptember2022,following
discussionswithstakeholders,the
food regulatory authority had
proposed an Indian Nutrition
Rating, a star rating system that
would assess the overall nutrition
profile of a packaged food item and
assign it a rating of anything from
half a star to five.
Maybe we will one day hear a
campaign that would say: Kuchh
stars ho jaye (Let there be a few
ORIENT CEMENT LIMITED
CIN No.: L26940OR2011PLC013933
stars).
[Regd. Office : Unit VIII, Plot 7, Bhoinagar, Bhubaneswar - 751012 (Odisha)]
Tel : (0674) 2396930, E-mail : investors@orientcement.com
Extract of Audited Financial Results
for the Quarter and Year Ended March 31, 2024 (` in Lacs)
they are crowded out by

Small (car) is beautiful

AMBI PARAMESWARAN
The Indian passenger vehicle
industry has had a stellar year.
In 2023-24 (FY24), PV sales
grew up by an impressive 9 per
cent. Carmakers are now
trying to assess where the next
spurt of growth can come
from. Will it be from small
towns? Will it be from small
electric vehicle (EV) buyers?
“Smaller towns the next pit
stop for carmakers”, read one
headline (Business Standard,
March 18, 2024). “JSW MG
Motor eyes a ‘Maruti
moment’”, read another
(BusinessStandard, March 21,
2024).
If you look at the sales
numbers of various models,
they tell an interesting story.
SUVs have been growing and
are reported to account for
almost half of all cars sold last
year. The largest-selling
model over the last few years
has been Swift (in FY24,
Wagon R seems to have scored
a small win), and all others in
the list of top ten cars are
possibly bigger than the Swift.
Having worked on
passenger vehicle advertising
for more than 15 years
(handling the Tata Motors
account), I am often worried
about the way carmakers are
trying to ‘upgrade’ Indian
buyers. There was a time when
Maruti 800 was the dominant
model, accounting for a
market share of over 80 per
cent. That changed with the
launch of Hyundai Santro,
Tata Indica and Daewoo
Matiz. Suddenly, car buyers
had a choice. Maruti saw the
writing on the wall and
launched Wagon R as a model
that Maruti 800 users could
upgrade to.
Then came the launch of
the Swift, which became a
runaway success. Maruti did
not ignore the entry-level
small car (Maruti 800) buyer. It
launched the Alto as its
replacement. The Alto had a
great run for many years. But if
you look at the leaderboard
over the last few years, you will
notice that cars smaller than
Swift have not had a great run:
i10, Alto, Celerio, Tiago et al do
not feature in the top 10.
This defies logic. In India,
in category after category, it is
almost always that the small
model, which offers
maximum value for money,
sells the most. This is to be
expected given the huge
middle- and lower middle-
class (interestingly, even in
motorbikes, we are seeing a
decline of the standard 100cc
bikes). What could be the
reason?
The first could be the rapid
rise of small car prices, thanks
to the implementation of the
new pollution control norms –
from BS IV to BS V, and soon to
BS VI. All these changes end
up increasing the cost of
manufacture and the price to
the consumer. The price
advantage that a very small car
enjoyed is no longer so
attractive.
The second could be the
availability of second-hand
vehicles. Why buy a new Alto
when you can get a five-year-
old Swift? While trying to
understand the tradeoff
between new car and old car, I
chanced upon an interesting
article in the Economist
(March 9, 2024). Prof George
Akerlof won the Nobel
Memorial Prize in Economic
Sciences in 2001 for his work
information in markets.
Information asymmetry is
when two parties don’t have
access to the same
information. Prof Akerlof
presented the topic in his
article, “The Market for
‘Lemons’”. The subject: used
cars.
He proposed a simple
model; there are used cars and
there are new cars; then there
are good cars and there are bad
cars. When you buy a new car,
you know what you are getting
(unless the dealer is pulling a
fast one on you). But when you
buy a used car, you don’t know
enough. The seller knows
more about the car he or she is
selling. Unfortunately, sellers
tend to sell a bad used car as a
good used car. Buyers get
taken for a ride, in more ways
than one. They develop
distrust and hence tend to
offer the lowest of low prices
for a used car. This drives out
sellers of good used cars (they
tend to hang on to their cars for
longer, I suppose). And the
market is left with ‘lemons’.
For the uninitiated, ‘lemon’
is the term used in America for
bad cars. One of the all-time
great Volkswagen ads had the
word ‘lemon’ as a headline; the
body copy then explained how
a ‘lemon’ never leaves the
factory. Coming to the point
we started with, used cars tend
to command a lower price
than they deserve because
Quarter Ended Year Ended
‘lemons’. A seller with a good
old car tends to withdraw from Sl. March December March March March
No.
Particulars
the market. The buyer is 31, 2024 31, 2023 31, 2023 31, 2024 31, 2023
always a little worried about a (Audited) (Unaudited) (Audited) (Audited) (Audited)
used car. 1 Total Income 89,553.76 75,322.04 88,088.03 3,20,060.94 2,94,956.60
We don’t know if this is 2 Net Profit before Tax 11,001.47 7,177.95 9,830.23 28,142.88 19,195.49
happening at scale in India.
3 Net Profit after Tax 6,819.98 4,499.22 6,737.87 17,485.27 12,281.51
We also don’t know how digital
tools are helping buyers and 4 Total Comprehensive Income for the period 6,845.18 4,469.94 6,934.98 17,422.64 12,413.56
sellers navigate the ‘market of (comprising profit for the period after tax and
lemons’. other comprehensive income after tax)
5 Paid-up Equity Share Capital 2,048.69 2,048.69 2,048.69 2,048.69 2,048.69
There could be one other (Face value `1/- per share)
reason why small cars are not
6 Other Equity 1,72,275.55 1,58,321.48
growing, and this may be the
bigger issue. Carmakers have 7 Earnings Per Share (of `1/- each)
stopped actively advertising (Not annualised)
their small cars (lower profit Basic (in `) 3.33 2.20 3.29 8.53 5.99
margins, higher service costs Diluted (in `) 3.33 2.20 3.29 8.53 5.99
etc). And the lack of Notes :
advertising and brand
1 The Board of Directors of the Company have recommended a final dividend of `1.50 per share (150%) aggregating to
building inputs has removed
`3,073.04 lacs on May 01, 2024 for the year ended March 31, 2024. This, together with an interim dividend of `0.75 per share
the badge value and pride of
(75%) declared in quarter ended December 31, 2023, the total dividend for the year ended March 31, 2024 is `2.25 per share
ownership of small cars.
(225%) on equity shares of `1/- each aggregating to `4,609.56 lacs. Final dividend is subject to approval of shareholders.
Remember the iconic ‘Alto
Let’s Go’ campaign? Or the 2 The above is an extract of the detailed format of financial results for the quarter and year ended March 31, 2024 filed with the
‘Indica Club’ that Tata Motors Stock Exchanges under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The
used to run? If carmakers want full format of the financial results for the quarter and year ended March 31, 2024 are available on the Company's website
to attract small-town and rural www.orientcement.com, BSE website: www.bseindia.com and NSE website: www.nseindia.com.
buyers to buy new cars, they For and on behalf of the Board of Directors
Sd/-
have to invest in brand D. D. Khetrapal
building. New Delhi (Managing Director & CEO)
If they can do this, then May 01, 2024 DIN 02362633
small car sales will boom in
small-town India and we will
see continued growth of PVs in
the country. Small cars hold
the big key to growth.
The writer is a brand coach and
founder, brand-building.com; he
can be reached at
ambimgp@brand-building.com
16
>
HYDERABAD | THURSDAY, 2 MAY 2024 1

G7’s coal phaseout BOMB SCARE AT OVER 130 DELHI-NCR SCHOOLS Northern,central
Indiatohavemore
move may impact heatwavesinMay
PRESS TRUST OF INDIA This trend is likely to

COP29, G20 talks

New Delhi, 1 May
Above normal maximum
temperatures are likely
over most parts of the
country in May and a sig-
nificantly high number of
SHREYA JAI heat wave days expected
New Delhi, 1 May over the northern plains,
central region, and
continue in May, with
around eight to 11 heat
wave days predicted over
south Rajasthan, west
Madhya Pradesh,
Vidarbha, Marathwada,
and Gujarat regions,
Mohapatra said.
The remaining parts
of Rajasthan, east

T
he Group of Seven (G7)
developed economies,
in the recent meeting of
its Climate, Energy, and
Environment Ministerial, has
decided to phase out unabated
coal during the first half of the
2030s. This decision sets the
tone for the upcoming global
dialogues on energy transition
at COP29 (Conference of the
Parties) in Baku and the Group
of Twenty (G20) in Brazil later
this year.
“We commit to phasing out
existing unabated coal power
generation in our energy sys-
tems during the first half of the
2030s or in a timeline consis-
tent with keeping a limit of 1.5
degrees Celsius temperature
rise within reach, in line with
countries’ net-zero pathways.
(We would also) reduce as
much as possible, in the mean-
while, the utilisation of
unabated coal power genera-
tion plants in our energy sys-
tems to a level consistent with
keeping the limit of 1.5 degree
Celsius temperature rise
within reach,” the final com-
muniqué of the G7 meeting in
Tunis, Italy, said.
GOING GREEN
n Phase out existing unabated
coal power generation in
our energy systems
during the first half of
2030s or in a timeline
consistent with keeping a
limit of 1.5C
n Achieve a fully or
predominately decarbonized
power sector by 2035
greenhouse gas emissions,
these affluent nations con-
tinue to indulge deeply in the
fossil fuel economy. This sets
a low bar for the upcoming
G20 Summit and COP29 cli-
mate conference later in the
year, perpetuating a grave
injustice by allocating the bur-
dens of climate action inequi-
n To fund in trillions towards
meeting goals of the Paris
Climate Agreements
n Six-fold increase in energy
storage
n To promote a common
definition of fossil fuel
subsidies
n Support tripling renewable
energy capacity
climate finance were in “bil-
lions”. While it signals
enhanced climate funding for
developing nations, the lack of
a comprehensive plan is disap-
pointing according to experts.
The G7 also decided to
push further its Just Energy
Transition Partnerships
(JETPs).
adjoining areas of penin- Madhya Pradesh, Punjab,
sular India, said IMD Haryana, Chandigarh,
chief Mrutyunjay Delhi, Uttar Pradesh, and
Mohapatra on some parts of
Wednesday. Chhattisgarh, interior
A prolonged and Odisha, Gangetic West
intense spell of heat wave Bengal, Jharkhand,
scorched swathes of east, Bihar, north interior
Over 130 schools in the Delhi-NCR area received an identical bomb threat by email early northeast, and southern Karnataka, and
Wednesday, triggering mass evacuations and massive searches. Police sources said that the email peninsular India in April, Telangana may record
schools received had the same source, suspected to be sent from Russia aimed at creating panic.
Officials said initial probe hinted at a deeper conspiracy by a terror group during the Lok Sabha
prompting health warn-
ings from government
five-seven heat wave days
in the month, he said.
elections.A case has been registered under relevant sections of law PHOTO: PTI
agencies and some states Normally, the northern
to suspend in-person plains, central India, and
classes in schools. adjoining areas of penin-
Five active Western sular India experience
Over half of India’s spice exports at risk: GTRI Disturbances led to rain,
thunderstorm, and hail-
around three days of heat
waves in May.
storms over north and cen- Above normal maxi-
SHREYA NANDI States (US), Hong Kong, ment similar measures, Indian tral India at regular inter- mum temperatures are
New Delhi, 1 May Singapore, Australia and spice exports could see a dramatic vals in April, preventing likely over most parts of
Maldives in the financial year downturn. The potential reper- heat waves, the India the country in May,
Countries that raised concerns 2023-24 (FY24), it said. cussions could affect exports Meteorological except for most parts of
about the quality of Indian spices During FY24, India’s spice worth $2.17 billion, representing Department's director northeast India, some
have called for urgent attention exports were worth $4.25 billion, 51.1 per cent of India’s global spice general told a press con- parts of northwest and
and action, Delhi-based think accounting for a 12 per cent share exports,” GTRI said in a report. ference. central India, and adjoin-
tank Global Trade Research of the global spice exports. The report said the situation IMD data shows that ing areas of northeast
Initiative (GTRI) said on “If China — influenced by could worsen if the European the heat waves in April this peninsular India where
Wednesday. The stakes are high actions in Hong Kong and Asean Union, which regularly rejects year were far worse than normal to below-normal
since India exported spices worth based on the precedents set by Indian spice consignments over in 2023, the warmest year maximum temperatures
about $692.5 million to the United Singapore — decides to imple- quality issues, follows suit. on record so far. are likely, the IMD said.

While experts have criti-
cised the language around the
phaseout commitment as
weak, the G7 is likely to exert
more pressure on developing
nations to give up fossil fuels
— a stance they maintained at
the last G20 meeting presided
over by India and at COP28 in
Dubai.
“The G7’s tepid commit-
ment to phase out unabated
coal by the mid-2030s starkly
contrasts with the urgent
need for climate action.
Besides being the principal
contributors to historical
tably and impeding the global
fight against climate change,”
said Harjeet Singh, global
engagement director for the
Fossil Fuel Non-Proliferation
Treaty Initiative.
The G7 also reiterated its
commitment to mobilise more
climate finance towards
renewable energy solutions. It
also cited the G20 India
Presidency text, which aims to
mobilise “trillions” of funds
towards meeting the Paris
Agreement goal. This part of
the G20 text was groundbreak-
ing as earlier commitments to
Through JETPs, the G7
signs agreements with poor
nations to plan and finance
their green growth by reduc-
ing fossil fuel usage and
adopting more green energy.
So far, South Africa and
Indonesia have signed JETPs
with the US, Japan, and
Germany.
JETPs have been criti-
cised by climate experts for
rich nations promising funds
as loans rather than grants
and for meeting their green
goals by shifting responsibil-
ity to poorer nations.
[ TECH DIGEST ]
SOON, INSTAGRAM TO Arc browser now available
RECOMMEND MORE on Microsoft Windows 11
ORIGINAL CONTENT The Browser Company has released its Arc
browser for Windows 11. Based on the free and
Meta’s social media platform Instagram has open-source Chromium engine, the Arc browser
announced changes to its ranking algorithms to for Windows 11 is built on Apple’s Swift
bring content from original creators upfront in programming language. It essentially allows
the recommendations. Until now, accounts with the Windows version of the browser to maintain SCAN THE CODE TO READ
substantial followers were able to get wider reach feature parity with the Apple version. FULLREPORTS
on the platform even if the content was not
original but a mere repost of someone else’s work.