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GST Council to hear Kumar, Pai to exit

Byju’s panel amid
New chief for
SBI likely this
DON’T MISS
ISTOCKPHOTO

week; 3 MDs
gaming firms’ plea flurry of lawsuits front-runners
Gopika Gopakumar
Officials examining their request for relief from tax notices Gopika Gopakumar gopika.g@livemint.com
& Varun Sood mumbai
Inter-ministerial task force in
Gireesh Chandra Prasad

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he country’s biggest the works to check digital ads
gireesh.p@livemint.com Play & pause mumbai/bengaluru
bank will soon know Three high-profile ministries that oversee

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new delhi nline tutor Byju’s who will walk into the different aspects of social media advertising
faced yet another set- 18th floor corner room of its are joining hands to create a task force that

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nline gaming com- back on Sunday, with Mumbai headquarters. can comprehensively crack down on
panies received a big Rajnish Kumar and T.V. The Financial Services misleading ads and fraudulent schemes
blow last year, when Mohandas Pai deciding to Institutions Bureau (FSIB), an promoted on digital platforms. >P7

T6
the government leave the advisory panel of its autonomous body under the
issued notices for parent Think & Learn Pvt. Ltd central government, will con- Refiners to jointly seek better

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over ₹1 trillion in goods and services after their one-year tenure duct interviews on 21 May to terms as Russian discounts fall

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tax (GST). While the matter has ends on 30 June. recommend a candidate for
With discounts on Russian crude oil
ended up in the Supreme Court, the Last year, Byju’s had named Byju Raveendran, founder and the chairman’s post, accord-

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dwindling, India, in a first such effort, has
federal indirect taxes body GST Kumar, a former chairman of CEO, Byju’s. MINT ing to two persons aware of brought together state-owned and private

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Council now plans to consider the State Bank of India (SBI), and the matter. oil refiners to jointly negotiate for higher
impact of the tax demand on the Pai, a former chief financial mutually decided that the ten- The final decision is likely to discounts and better terms with Russian

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industry's viability, two people officer of Infosys Ltd, to advise ure of the advisory council be known the same day, the suppliers. >P2

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aware of the matter said. founder Byju Raveendran, fol- should not be extended. first person added on the con-
Central and state GST officials lowing a series of board exits Though the formal engage- dition of anonymity.
are examining the grievances of
online gaming companies and their
and financial woes, and to
assuage worried investors as
5o
ment concludes, the founders
and the company can always
Incumbent Dinesh Kumar
Khara retires on 28 August and
Blackstone eyes controlling
stake in Bharat Serums
w
request for relief from the tax noti- lawsuits mounted. approach us for any advice. the next chairman will take Private equity behemoth Blackstone is
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ces issued for the period till October TOUGH GAME An executive aware of the We wish the founders and the charge the same day. among a clutch of bulge-bracket global
investors who are in the race to pick up a
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2023, totalling over ₹1.12 trillion, 71 notices demanding Under GST laws, But strong rationale matter said Kumar and Pai are company the very best for the The front-runners for the
controlling stake in an Indian healthcare
across 71 cases, the people said on ₹1.12 tn in tax were penalty can match the is required to give any snapping ties as the company future,” the statement said. post are State Bank of India’s company, three people aware of the matter
uf

the condition of anonymity. Under sent for FY23, FY24 tax demanded relief on past dues got embroiled in litigation The advisory panel’s three (SBI’s) three managing direct- told VCCircle. >P3
GST laws, penalty can match the tax both in India and in the US main focus areas were to get ors—C.S. Setty, Ashwini Kumar
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specified in the notice, which could from its creditors and key the company to disclose Tewari and Vinay M. Tonse.
SC ruling gives telcos around
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increase the tax claim further. are going on, but declined to GST Council set 28% tax on the full shareholders, who want the its audited financials and Alok Kumar Choudhary, the
“Officials are examining the plea describe it as a “relief to the indus- face value of deposits, which was founder ousted. help Raveendran rebuild the fourth managing director, is set ₹3,000 crore of savings
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made by online gaming companies try” yet. followed by tax demands on previ- Late on Sunday, Kumar and team. Better communication to retire end of June. Telecom service providers including
about the tax notices. It will be con- Until last year, the law did not ous earnings by the gaming compa- Pai said in a joint statement with shareholders was the “All three candidates are
co

Bharti Airtel, Vodafone Idea and Tata

sidered by the GST Council at its specify tax rates on online gaming, nies. While the companies have that their engagement with third part. top-class talent, who will be Communications are set to save about
₹3,000 crore following a SC order released on
p.

next meeting, which could either be and companies used to pay 18% GST challenged it in court, finance min- Byju’s as advisors was always On each of these aspects, able to provide stability to SBI,”
at the end of June or early July,” said on the platform fee or commission istry officials have earlier said that on a fixed-term basis for a year. Byju’s started well “but unfor- a former SBI chairman said on Sunday. The interest component on tax has
ap

one of the two persons cited above. (which ranges from 5-20% of the “Based on our discussions been waived off by the SC in its order. >P6
The person said “some discussions” deposits). On 1 October 2023, the TURN TO PAGE 6 with the founders, it was TURN TO PAGE 6 TURN TO PAGE 6
ts
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02 MONDAY, 20 MAY 2024
CHENNAI ECONOMY & POLICY LIVEMINT.COM

STRAIGHT
F O R WA R D
Refiners to seek better terms India plans
onion, rice
SHASHI SHEKHAR

Respond to this column at

feedback@livemint.com
as Russia cuts discount on oil exports on
MEA’s call
Puja das
SACRIFICES QUICKLY The strategy involves leveraging India’s position as the world’s third-largest crude oil buyer
puja.das@livemint.com
NEW DELHI

FORGOTTEN IN THE
I
ndia is planning to export
Utpal Bhaskar 48,000 barrels a day to 26.575 million 14,000 tonnes of non-bas-

CONTEST TO POISON utpal.b@livemint.com

NEW DELHI
barrels a day in April, according to
a WSJ report. Opec and its allies have
extended their output cuts until the
mati rice to Mauritius, and
7,500 tonnes of onions to Qatar
through National Cooperative

I
ndia, in the first such move, has end of June, which many analysts Exports Ltd (NCEL), after the

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ith the conclusion of the fourth phase of polling for the brought together state-owned and expect could be stretched to the second ministry of external affairs
general election, the results of nearly 70% of the con- private oil refiners to jointly negoti- half of 2024 to boost prices, the report (MEA) requested for some
stituencies lie sealed in EVMs. Against this backdrop, ate for deeper discounts and better added. Data from India’s ministry of relaxation in the export ban, an
have you observed any shift in the rhetoric of the nation’s politi- terms with Russian suppliers, commerce show the country imported official said.
cal figures leading up to the fifth phase? Bitterness in their dis- including Russia’s largest oil company crude worth $46.48 billion from Russia The government-to-govern-
courses is reaching its peak, with fresh claims and promises as Rosneft PJSC. in 2023-24, about 50% higher than the ment export comes against the
attention turns to the remaining 30% of seats. The government-led joint sourcing $31.02 billion worth of crude imported backdrop of an export ban
The Bharatiya Janata Party and its allies are making big claims strategy involves leveraging India’s from that country in FY23. India’s since last July, and the govern-
to have won the election and to be swiftly approaching the target position as the world’s third-largest share of imports from Russia was a ment lifting the ban on onion
of 400 seats. In response Mallikarjun Kharge, National President crude oil buyer to get better discounts third of its total oil import bill in value exports but slapping a $550 per
of the Congress, and Akhilesh Yadav addressed journalists in on Russian oil, which have dropped to terms. tonne minimum export price
Lucknow, stating that BJP had lost the elections and that their about $3 per barrel from a high of $10 Consequently, India’s oil import bill (MEP) and 40% export duty on
seats had increased significantly in all phases. While Prime Min- earlier, said two people aware of the in FY24 shrank 13.35% from a year ear- onions earlier this month.
ister Narendra Modi talks about dedicating his third term to the development. Indian refiners are looking to get Russian suppliers, including Rosneft PJSC, the lier to $139.85 billion. India effectively “We received a request from
country’s quick advancement, home minister Amit Shah reiter- The calibrated strategy—involving largest oil company in Russia, to continue supplying oil at deeper discounts. saved about $7.9 billion in the first 11 MEA for export of non-basmati
ates his determination to make POK (Pak Occupied Kashmir) a Indian Oil Corp. (IOC), Bharat Petro- months of FY24 owing to cheaper rice and onion to Mauritius and

T6
part of India again. The Prime Minister said at a public meeting leum Corp. Ltd (BPCL), Hindustan we are speaking to them as one,” one of mation mentioned in your enquiry,” a imports from Russia, rating agency Icra Qatar,” the official who did not
in Bihar: “Hum Pakistan ko choodiyaan pahana denge.” (We will Petroleum Corp. Ltd (HPCL), Reliance them said. “Our point is simple: If they spokesperson for Rosneft said in an said in a recent report. wish to be identified, said.

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make Pakistan wear bangles). Industries Ltd (RIL), and HPCL Mittal don’t offer more discounts to India as a emailed response. “However, we In FY22, before the Ukraine crisis “Although it recommended

3i
This is the first time the Prime Minister and home minister Energy Ltd (HMEL)—may help save on market, then we can look elsewhere. A believe that the commodity price broke, Russian oil accounted for only 24,000 tonnes of non-basmati
have used such strong words on public forums. Previously, due India’s significant oil import lot of oil is flowing.” should be formed on market 2% of India’s total oil imports. rice to supply to Mauritius and

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to international pressure, such things were served with prudence bill, they said, requesting Energy security is key to principles rather than deter- State-run ONGC Videsh 15,000 tonnes of onions over

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in velvet-coated words. anonymity. India’s national security. It mined by individual Ltd (OVL), Bharat Petrore- the next two months to Qatar,
Kharge, on behalf of the INDIA bloc, promises to double the Russia, facing sanc-
80% imports more than 80% of groups or organizations.”
$46.48
sources Ltd, Indian Oil
bn Corp. and Oil India Ltd
the committee decided to

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free grain distribution to 10 kg and increase the job reservation tions by the West over its the oil it needs, and is vul- India has been calling export 14,000 tonnes of non-

Li
limit beyond 50%. Is it possible? When I asked a senior Congress- Ukraine invasion, is now The share of India’s nerable to any increase in for a global consensus on Worth of crude oil (OIL) have invested $16 basmati rice to Mauritius, and
man on this subject, he used Brazil as an example. He claims that India’s top supplier of oil requirements global prices, which can “responsible pricing”, India imported billion in Russia till date. 7,500 tonnes of onions to Qatar
‘freebies’ have had outstanding outcomes in Brazil, so what’s the
harm in doing similar experiments in India?
crude oil. The discounts
Russia offered on its oil
met by imports stoke inflation and widen which assumes signifi-
the trade deficit. cance as the influential
from Russia in FY24 5o Another Indian consor-
tium comprising OIL, IOC,
through NCEL. A final call will,
however, be taken by the top
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Mamata Banerjee, who took the lead from Congress in West saved India billions of dollars. Spokespersons for India’s Opec+ cartel, which includes and Bharat Petroresources authorities,” the official added.
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Bengal, has also altered her tone. Until a few days ago, she had But those discounts have fallen in petroleum and natural gas minis- Russia, has been limiting its owns 29.9% of LLC Taas-Yuryakh Queries sent to the minis-
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reduced Congress to less than 40 seats on a national level. Now recent months. try, IOC, BPCL, HPCL, HMEL and RIL crude supplies. (Taas-Yuryakh Neftegazodobycha). tries of external affairs, com-
she argues that the INDIA bloc will get 300 seats nationwide, and “The discount on Russian oil is com- did not reply to queries emailed on Fri- The Vienna-based Organization of OVL has also acquired the Siberian merce, consumer affairs, and
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TMC would support it to form a government from the outside. ing down. While the Russians are tough day afternoon. the Petroleum Exporting Countries’ deposits of the UK’s Imperial Energy food and public distribution
What sort of game are they playing? negotiators, we have an advantage as “Currently we do not have the infor- (Opec’s) crude-oil production fell by Corp. remained unanswered.
lx

Meanwhile, divisive and poisonous terms such as temple,

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mosque, Hindu, Muslim, kabristan-

Our politicians shamshan (graveyard, crematorium),
m

do not realize Aurangzeb, colour, and caste are creat-

ing bitterness. Our politicians do not Govt looks at ways to Mergers off but PSB privatization still on
co

that divisive realize politics based on caste, religion,

politics poisons region, language, or sect, played con-
stabilize cane output
p.

minds of future sciously or otherwise, poisons the Rhik Kundu & mentioned above, who spoke
ap

generations minds of future generations. What Subhash Narayan on the condition of anonymity.
happened in Punjab in the Seventies The government, which
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and Eighties, and in Kashmir during Puja Das water levels in 42 reservoirs in NEW DELHI owns more than 45% in IDBI,
the two decades that followed, is a horrible example of this. This puja.das@livemint.com the week ended Thursday were and Life Insurance Corp of
ha

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lethal sequence must be stopped immediately. NEW DELHI as low as 14% of capacity. In the he Centre doesn’t have India (LIC), which has a 49.24%
I’m not disputing the Election Commission’s motives or its ongoing 2023-24 (October- any plan to merge public shareholding, have jointly
t.w

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machinery here, but why doesn’t the Election Commission, he Union government in September) season, the coun- sector banks (PSBs) in decided to sell a 60.7% stake in
which is supposed to be neutral, knuckle down to prevent this? collaboration with the try is estimated to produce 32 FY25, though it will not ditch the lender, which is catego-
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In a growing and healthy democracy, a variety of issues will arise Indian Sugar and Bio- million tonnes (mt) of sugar plans to privatize PSBs during rized as a private bank.
that can’t always be ignored. Energy Manufacturers Associ- after 2.38mt diversion to etha- the fiscal, two people aware of Last October, Mint reported
//c

There is another crucial question. How can some of our politi- ation (ISMA) and the National nol, as against 32.9mt last year. the matter said. that the government is plan-
cians speak so irresponsibly? Federation of Cooperative Uncertain weather has also “There have been no pro- ning to revisit its bank privati-
s:

I want to tell such politicians a story. Last year, while I was Sugar Factories (NFCSF) is created concerns over crop posals, at present, to merge any zation plan and redraw the list
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tracking the developments in Kashmir Valley in the wake of the exploring ways to stabilize sug- output, driving the govern- more public sector banks of PSBs to be privatized, with
repeal of Article 370, I met this person. He had a paralysed leg and arcane production amid poor ment to take measures includ- (PSBs),” said the first person the banks turning profitable
ht

was struggling to walk even with the help of a stick and his irrigation facilities and deplet- ing an indefinite ban on sugar mentioned above, speaking on The government is keen to complete the much-delayed strategic and controlling bad loans. It
brother by his side. Terrorists had shot at his legs multiple times ing water levels in exports. This also the condition of anonymity. divestment process for IDBI bank during FY25. MINT was considering a new panel
for voting in the district panchayat elections. He said the terror- key reservoirs of In the 2023-24 assumes signifi- “We are not aware of any dis- with representatives from the
ists had warned residents of his village against voting, but he major producing season, India is cance as the gov- cussions on merging public 2020, PSBs were grappling PNB the country’s second-larg- finance ministry, Niti Aayog
ignored the warning, thinking it was just bluster. The third day states to meet estimated to ernment aims to sector banks or giving up on with sour loans, prompting the est bank after the State Bank of and RBI to study PSBs afresh
after he voted he faced the attack. domestic con- produce 32 mt of achieve its E20 privatisation,” the person government to initiate meas- India (SBI). and draw a fresh list of suitable
If you are wondering why the terrorists had not killed him, it sumption and the
sugar after 2.38mt (20% ethanol added. ures to restore their financial Other mergers included candidates for privatization,
was because the terrorists intended to use him as a living example ethanol blended blended with pet- Last week, Informist media health. These included capital Dena Bank and Vijaya Bank the report added.
of what voting at elections “sponsored by India” entailed. Such with petrol (EBP) diversion to rol) target by reported that the government infusion and with the Bank of “Most PSB mergers, which
elements have failed at the current elections, and the enthusiasm targets, two peo- ethanol 2025-26. was contemplating a different merger of banks, The government Baroda; Allahabad were required, have already
the valley’s inhabitants have shown in the fourth round is a slap ple said. India needs strategy to strengthen the which enlarged was considering a Bank with Indian been carried out. In terms of
in the face of terrorism sponsored from across the border. This comes 29mt of sugar banking sector, with the their capital base new panel to Bank; Andhra privatization, the strategic
Such cases are not exclusive to Kashmir. There are dozens of against the backdrop of El Niño each year, with an annual finance ministry looking to and reduced their study PSBs afresh Bank and Corpo- divestment of IDBI is being
such people in the secluded areas of the North-east and Naxal-af- weighing on monsoon rainfall growth rate of 1.5–2%. Niti merge certain state-owned operational and
and draw a fresh ration Bank with
worked on,” the second person
fected districts of Chhattisgarh, Jharkhand, and Maharashtra. and causing prolonged dry Aayog estimates show the banks if the incumbent Bharat- administrative Union Bank of mentioned above, said.
They have made great sacrifices to reinforce the foundation of spells last year, especially in key country needs 9.88 billion iya Janata Party (BJP) retains expenditure. list of candidates India; and Syndi- “There have been no new
democracy. I’d also like to remind you of the families of deceased sugarcane growing regions, litres of ethanol, of which 55% power. Under the cur- for privatization cate Bank with proposals to privatize PSBs yet,
personnel of the armed forces who never hesitated in sending including Maharashtra, Karna- must come from sugarcane, to India currently has 12 PSBs, rent government, Canara Bank. The but this could change in
their loved ones to sacrifice their lives to protect the country and taka, and Tamil Nadu. Inade- achieve E20 target by 2025-26. down from 27 in 2017, after sev- The Oriental government is future,” the person added.
its law and order. Who says our democracy can survive without quate rainfall has also caused Queries sent to the agricul- eral mergers were carried out Bank of Commerce (OBC) and keen to complete the much-de- A finance ministry spokes-
such efforts? How come our politicians forget this so easily? drying up of the country’s 150 ture, jal shakti and food and to strengthen some banks. the United Bank of India were layed strategic divestment pro- person didn’t respond to
Shashi Shekhar is editor-in-chief, Hindustan. Views are per- major reservoirs, especially in public distribution ministries Before the mergers, the bulk of merged with Punjab National cess for IDBI bank during emailed queries.
sonal. the southern region where the remain unanswered. which were carried out in 2019- Bank (PNB) in 2020, making FY25, said the second person rhik.kundu@livemint.com

Highway-laying targets to drop in FY25 despite post-poll growth agenda CORRECTIONS AND
CLARIFICATIONS
Mint welcomes comments,
Subhash Narayan highway construction, with sons quoted above. target for FY25 is that the ther improved the concession suggestions or complaints
subhash.narayan@livemint.com access-controlled six-lane and The other person said that Model Code of Conduct will be framework for BOT and TOT about errors.
NEW DELHI eight-lane roads being built as lower highway targets for FY25 applicable for the first two projects...I expect large infra
Readers can alert the
against highways with far fewer may also be considered as, after months. We had seen a similar funds and yield investors to
newsroom to any errors in the

T
he Centre is looking to fix
a “moderate but realistic”
highway construction
target of 12,000–13,000km for
FY25, two persons aware of the
development said, citing a pro-
posed new method of calcula-
tion and other factors.
This is lower than the 13,814
km target and the 12,349km of
actual construction achieved
last fiscal—the second highest
after the record 13,327km built
in covid year 2020-21.
This change is the outcome
of increased complexities in
lanes—even single carriage-
ways—as was the practice ear-
lier.
Another reason is the pro-
posed shift in the way the gov-
ernment calculates the length
of highways—switching to
actual lane kilometres rather
than linear method of measur-
ing construction at present.
Under the new method, for
instance, a 10-km stretch of
highway with four lanes can be
shown as 40km in the books.
“Going by this yardstick, lin-
ear highway construction tar-
having "overstated" construc-
tion targets in the previous
three fiscal years, the govern-
ment now wants to set more
achievable goals for itself.
In FY22 and 23, against the
target of 12,000–12,500km,
only 10,457km and 10,331km,
respectively, were laid while in
The government is planning to keep the targets for construction the last fiscal, against 13,814km
of highways “moderate but realistic”. MINT target, 12,349km got built.
Queries sent to the ministry
get may be lower at around any of the previous years as of road transport and highways
12,000km in FY25 or even wider, stronger and smoother remained unanswered till press
lower but in terms of lane km stretches would be the focus time.
added, it could be the highest in now,” said one of the two per- “One key reason for a lower
dip in 2019 as well. The other
reason is that a lot of projects
where the land acquisition and
project planning was already
completed have been awarded
in the last few years. NHAI and
the states are now working on
similar preparatory activities
for the next few years of high-
ways build-out,” said Srishti
Ahuja, Partner, Investment
Banking, EY.
“Despite the short-term
reduction in target, the sector
will see a significant amount of
investment as MoRTH has fur-
commit more capital for paper by emailing us, with your
mature assets; the domestic full name and address to
players will continue focus on feedback@livemint.com.
greenfield build-outs, which
they will thereafter monetize,” It is our policy to promptly
respond to all complaints.
she added. Readers dissatisfied with the
According to the first person response or concerned about
quoted above, though actual Mint’s journalistic integrity may
construction target may look a write directly to the editor by
bit lower than the previous sending an email to
year's record high levels, the asktheeditor@livemint.com
big pipeline of projects with Mint’s journalistic Code of
government agencies would Conduct that governs our
ensure construction activities newsroom is available at
to remain closer to actual FY24 www.livemint.com
levels this year.

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First published in February 2007 to serve as an unbiased and clear-minded chronicler of the Indian Dream.
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RNI Registration DELENG/2007/22485; Mint welcomes readers’ responses to all articles and editorials. Please include your full name, address and telephone number. Send in your views to the editor at letters@livemint.com. ©2024 HT Media Ltd All Rights Reserved
LIVEMINT.COM
m THE MONDAY QUIZ
1) WHAT is the latest
and improved version
of GPT 4 that OpenAI
debuted last week?
3) WHICH Indian telco did Google Cloud partner with
to deliver cloud solutions to Indian businesses?
4) IN which European
nation did TCS announce
the establishment of an
AI Intelligence Centre?
GLOSSARY
LoRA: Short for low-rank
adaptation, LoRA is used
in the context of large lan-
guage models (LLMs) fine
tuning. LLMs are massive
and fine-tuning them
involves adjusting a num-
ber of parameters, making
the whole process slow
and expensive. LoRA
offers an easier technique
by capturing only the
essential information
needed for the task.
Red teaming: A struc-
tured testing method, red
teaming is a simulation of
an attack on an organiza-
tion’s security posture by
appearing to be an adver-
sary. These simulations
are carried out by groups
called red teams. Red
teams use a variety of
techniques, including
social engineering, net-
work exploitation, and
3) Airtel 4) France 5) Sanjeev Jain
1) ChatGPT 4o 2) Matt Garman
THE MONDAY QUIZ ANSWERS:
Companies raised $815 mn this week
Deal value ($ mn) Lead investors
DrinkPrime
 SIDBI Venture
Stupa Sports
 Centre Capital
Court Capital, 3
Peer Capital
OTPless 3.3
 SIDBI Shriram Finance
Venture  Warburg Pincus
Capital 3.5
555
Matel 4
 Transition
VC
4.2
SolarSquare 4.8
 Rainmatter
Capital, Gruhas
Celcius Logistics
 IvyCap Ventures
Deal activity jumps
on buoyant private
equity investments
K. Amoghavarsha &
Malvika Maloo
BENGALURU
P
rivate equity (PE) and
venture capital (VC)
investments saw a sub-
stantial jump in deal value led
by large PE investments in the
financial services space in the
week ended 17 May. Addition-
ally, a couple of mid-sized PE
deals helped the cumulative
deal value breach the $800
million mark seen in the previ-
ous week.
Deal volume, however, fell
slightly during the week with
overall deal count reducing by
three compared to the prece-
ding week. Startups raised $815
million across 21 deals from PE
and VC investors, compared to
the week before when they had
raised $432 million across 24
deals.
Last week’s most significant
deal recorded in the PE and
VC space was Warburg Pin-
cus’ $555 million bet on Shri-
ram Housing Finance Ltd.
Notably, this is the US-based
PE investor’s largest deal in
India since it began investing
in the country more than two
decades ago. The growth-
stage investor will acquire the
mortgage lending arm from
Mumbai-listed Shriram
Finance Ltd and private
equity firm Valiant Partners.
2) WHO has been
named the new chief
executive officer of
Amazon Web Services?
5) WHO has recently
been appointed the
new chief operating
officer of Wipro?
physical security testing.
The group then reports
back with recommenda-
tions for improvement.
Instruction set architec-
ture: Abbreviated as ISA,
instruction set architec-
ture is a bridge between
the software and the hard-
ware of a computer system.
It represents a set of
instructions that a pro-
cessor can understand and
execute. The ISA defines
the interface between soft-
ware and hardware and
specifies storage locations,
operations, and how to
evoke them.
Yield: In semiconductor
manufacturing, yield is
defined as the percentage
of functional chips pro-
duced from a wafer. It is
calculated by dividing the
number of non-defective
semiconductor chips pro-
duced by the maximum
chip count. A higher yield
indicates a higher produc-
tivity. Since wafers are
expensive, yield directly
impacts profitability.
Centre for Sight
 ChrysCapital
100
Biorad Medisys
 Kotak
Alternates Asset
Management
47.9
Battery Smart
 Acacia
Inclusion Limited,
45 MUFG Bank
Red.Health
20  Jungle Ventures
13
Niqo Robotics
 Bidra Innovation Ventures
Source: VCCEdge, VCCircle, media reports
PARAS JAIN/MINT
The second largest deal
was ChrysCapital’s $100 mil-
lion investment in eyecare
chain Centre for Sight. The
round, comprising a mix of
primary and secondary com-
ponents, saw the private
equity arm of Mahindra
Group, Mahindra Partners,
making a complete exit from
its five-year-old bet.
Last week also saw a couple
of mid-size transactions within
the range of $10-50 million.
Medical devices maker Bio-
rad Medisys Pvt Ltd, backed by
healthcare-focused PE firm
InvAscent, got $48 million in a
round from Kotak
Strategic Situations
India Fund II, man-
aged by Kotak Alter-
nate Asset Managers, while bat-
tery tech startup Battery Smart
raised $45 million from the
likes of Acacia Inclusion Ltd,
MUFG Bank, Blume Ventures,
The Ecosystem Integrity Fund,
and British International
Investment.
Medical emergency plat-
form RED. Health secured $20
million in Series B money led
by Jungle Ventures with partic-
ipation from new and existing
investors like HealthQuad,
HealthX, and Alteria Capital.
The week saw two merger
and acquisitions, against four
deals in the previous week.
k.amoghavarsha@live-
mint.com
DEALS, TECH & STARTUPS MONDAY, 20 MAY 2024
CHENNAI 03
Unexpectedly, the cost of
big cyber-attacks is falling
IMF says rising risk of extreme losses from cyber incidents could pose an acute threat to macrofinancial stability
ment claimed at the time, “the most the American health-care system, in
destructive and costly cyber-attack in February has had a devastating
history”. At least two other cyber-at-
tacks—the SoBig virus in 2003 and
impact but will probably come in at
under $2bn, reckons Mr Johans-
the MyDoom attack a year later— meyer, still a relatively small sum. A
L
ast October, Anne Neuber- were far larger when adjusted for separate attack on MOVEit, a widely
ger, America’s top cyber offi- inflation (see chart). used file-transfer service, will proba-
cial, issued a dire warning. Most remarkably, the economic bly cost less than $1bn.
Cybercrime would cost the impact of major cyber incidents “The big question”, acknowledges
world more than $23trn by appears to be falling, as our first chart Mr Johansmeyer, “is whether indi-
2027, up from $8.4trn in 2022. More shows. Around 92% of total economic vidual losses [below the $800m
recently the IMF noted that cyber-at- losses from cyber catastrophes came threshold] could get massive in
tacks have doubled since the covid-19 before 2009, notes Mr Johansmeyer, aggregate”. He argues that this is very
pandemic. “The risk of extreme losses who included incidents that cost unlikely and estimates that ransom-
from cyber incidents is increasing,” more than $800m and had a signifi- ware, for instance, costs only $400m-
said the fund. These could even pose cant number of victims. His estimates 500m per year. Others are less san-
“an acute threat to macrofinancial define economic damage broadly but guine. “The constant drip drip of ran-
stability”. But is the economic impact the bulk of losses tends to be caused somware and the accretive loss across
of cyber-attacks really so large—or by loss of productivity, he says. The the economy contributes to stagger-
rising so fast? worst year came over two decades ing losses,” says Chris Krebs, who
T6
Data collected by Tom Johans- ago: in 2003 total losses were a stag- served as director of America’s
meyer of the University of Kent, a Cybercrime is likely to cost the world more than $23trn by 2027. gering $110bn. Over the past 15 years, Cybersecurity and Infrastructure
W
ISTOCKPHOTO
former senior executive at Verisk, an he concludes, real-term losses have Security Agency. These attacks are
3i
insurance-data firm, suggests that the around the world causing more than Ian caused ten times the damage in “downright plummeted”. He specu- difficult to quantify precisely. The
truth is more complicated. In analysis $10bn-worth of damage. That sounds Florida; Hurricane Katrina caused lates this could be owing to better FBI estimates that “potential losses”
K
first published by Binding Hook, a bad. nearly 20 times as much. The wild- security. in 2023 exceeded $12.5bn, a sum 22%
dc
website focusing on cyber issues, Mr But Mr Johansmeyer’s first point is fires that raged in California between Although this data stops in 2017, higher than the previous year. Even
Johansmeyer considers the case of that this is not especially large by the 2017 and 2021 probably cost more the big attacks that have occurred by the standards of natural disasters,
Q
NotPetya, a Russian attack on standard of natural disasters, which than $117bn annually. NotPetya was a since then do not appear to buck the that is a lot.
Li
Ukraine in 2017 designed to delete can serve as one useful benchmark pinprick in comparison. Moreover, it trend. A ransomware attack on ©2024 THE ECONOMIST NEWSPAPER
data and which inadvertently spread for comparison. In 2022 Hurricane was not even, as America’s govern- Change Healthcare, a critical node in LIMITED. ALL RIGHTS RESERVED.
5o
w
H
Blackstone leads race for controlling stake in Bharat Serums
4n
uf
Debjyoti Roy tional, which is looking to exit. a partial stake from the Daft- women’s health and assisted
lx
debjyoti.roy@livemint.com In addition to Blackstone, ary family. Advent bought reproductive segments.
/D
NEW DELHI Bain Capital, Carlyle, Partners Daftary family’s remaining It is one of the largest man-
Group, KKR, and Permira Pri- 26% stake in April 2022. ufacturers of the anti-fungal
m
P
rivate equity behemoth vate Equity are also showing Bharat Serums, incorpo- d r u g s Amphotret,
Blackstone is among a interest in the pharmaceutical rated in 1971, is engaged in the Amphomul, Amphonex and
co
clutch of bulge-bracket company, the people said development, manufacturing Ampholip. In FY22, these
global investors who are in cited above said, requesting and marketing of products, used in
p.
the race to pick up a control- anonymity. biologicals, bio- Bain Capital, the treatment of
ap
ling stake in an Indian health- Last year, VCCircle was the tech and phar- Carlyle, Partners, the black fungus
care company, three people first to report that Bharat maceutical for- KKR, Permira infections gained
ts
aware of the matter told Serums had initiated the pro- mulations. Its Private Equity are significant trac-
VCCircle. cess to raise fresh product profile tion amid the
ha
Blackstone, which capital and provide include plasma
also showing
second wave of
struck its first hospi- exit to Advent. derivatives, fer- interest in the covid-19 pan-
t.w
tal deal in India in Global investment The private equity behemoth is likely to submit a non-binding bid tility hormones, healthcare firm demic. However,
2023, and invested $1 billion bank Jefferies and JP Morgan for the healthcare company by the end of this month. BLOOMBERG antitoxins, anti- revenue from
ha
to acquire Care Hospitals and are running the transaction, fungals, anaes- these drugs mod-
KIMS Health, is likely to sub- VCCircle had reported. 900 million. response till press time. thetics, cardiovascular drugs, erated in FY23 as covid sub-
//c
mit a non-binding bid by the Advent is seeking a valua- While Blackstone, Partners Advent had valued Bharat and diagnostic products. sided, narrowing the com-
end of this month for Bharat tion of $2 billion, or ₹16,600 Group, Permira and JP Mor- Serums at $500-550 million. The firm’s consolidated pany’s profit margins.
s:
Serums and Vaccines Ltd. The crore for Bharat Serums, they gan declined to comment on The PE firm initially acquired revenue rose 15% to ₹1,435.4 However, to boost revenue,
tp
Mumbai-based company is said. However, analysts track- the matter, email queries sent about 74% in the company in crore in FY23 from ₹1,245.3 Bharat Serums acquired TTK
currently owned by private ing the sector said a deal may to Bharat Serums, Advent and late 2019 from Orbimed and crore in FY22 on the back of Healthcare’s human pharma
ht
equity firm Advent Interna- eventually be struck at $840- other PE firms did not elicit a Kotak Private Equity, besides significant traction in the division for ₹805 crore.
Jashvik Cap
eyes stake
in Dolphin
Sutures
Debjyoti Roy
debjyoti.roy@livemint.com
NEW DELHI
J
ashvik Capital, a growth-
stage private equity inves-
tor, is eyeing a stake in sur-
gical equipment manufac-
turer Dolphin Sutures, at least
two people aware of the devel-
opment told VCCircle.
The deal may involve more
investors, with Jashvik possi-
bly attracting another bidder,
said one of the two people. The
transaction is estimated to be
at ₹300-400 crore, or $36-47
million, a second person said.
Lincoln International is aidinh
Dolphin scout for potential
investors. However, a Dolphin
Sutures spokesper-
son said: “We would
like to categorically
deny this incorrect
information.”
Lincoln and Jashvik did not
respond to VCCircle’s queries
till press time.
If finalised, this will be a sec-
ond significant deal following
KKR’s acquisition of surgical
equipment maker, Healthium
Medtech from Apax Partners,
earlier this month.
Incorporated in 1994, Dol-
phin, operated by Futura Sur-
gicare, has diversified its
offerings to include surgical
mesh, skin stapler and surgi-
cal tapes. It claims to be one of
the oldest manufacturers of
sutures in India catering to
over 75 million surgeries in
last 30 years.
04 MONDAY, 20 MAY 2024
CHENNAI MARK TO MARKET LIVEMINT.COM

S&P BSE Sensex Nifty 50 Nifty 500 Nifty Next 50 Nifty 100 S&P BSE Mid-cap S&P BSE Small Cap
CLOSE 1-WEEK CHANGE (%) CLOSE 1-WEEK CHANGE (%) CLOSE 1-WEEK CHANGE (%) CLOSE 1-WEEK CHANGE (%) CLOSE 1-WEEK CHANGE (%) CLOSE 1-WEEK CHANGE (%) CLOSE 1-WEEK CHANGE (%)

74005.94 1.85 22502.00 2.03 21144.45 3.30 67657.00 5.82 23508.60 2.62 43047.52 4.92 47959.67 5.69
1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%)

2.09 2.18 2.30 2.09 4.03 4.86 9.14 15.48 3.38 4.29 7.19 7.81 5.52 5.04
6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%)

12.48 20.47 14.04 24.12 20.14 37.64 44.45 67.40 18.89 30.71 28.96 64.59 21.11 60.96

m MINT SHORTS
From Tokyo to New York,
M&M in fast lane on higher capex
stock markets at record highs Abhishek Mukherjee
India vs Bharat base,” BNP Paribas said in a note. of new products, diversification of pow-
From New York to London to Tokyo, if there’s one simi- abhishek.mukherjee@livemint.com M&M has projected UV sales volume ertrains and recovery in tractor volume
larity among the world’s equity markets it’s this: record M&M is seeing strong traction in auto volumes due to the rising demand for growth of mid to high teens in FY25. Its along with strong sustainable margin,”

P
highs. Of the world’s 20 largest stock markets, 14 have hit ersonal finance gurus often SUVs, but farm sector weakness is weighing on tractor sales order backlog is at 220,000 units. The said a report by Prabhudas Lilladher.
all-time highs recently. The MSCI ACWI Index, which advise ‘buy stocks, not prod- Utility vehicles (domestic) Tractor Volumes (in units) company maintained its numero uno The management said commodity
tracks developed and emerging markets, has been on a ucts of companies’. Mahindra position in SUV revenue market share at prices should remain benign in the
record-breaking run. In the US, the S&P 500 and Nasdaq & Mahindra Ltd (M&M) is a 1,40,000 20.4%, up 80 basis points (bps) year-on- coming quarters, while better operating
100 indexes hit records this week, while the Dow Jones case in point. If you had year in the March quarter.Ebitda mar- leverage and cost cutting initiatives will
1,20,000
Industrial Average crossed 40,000 for the first time ever. resisted the urge to buy a gleaming new gin, at 12.9% (up 10 bps sequentially), keep the margin profile steady. M&M’s
Meanwhile, the biggest bourses in Europe, Canada, Bra- sport utility vehicle (SUV) from the beat consensus estimates, operational profile may be
1,00,000
zil, India, Japan and Australia are currently at or near Mahindra stable one year ago, and had helped by 50 bps sequential IN THE kicking into top gear, but
their peaks. Looming interest rate cuts, healthy econo- invested the sum instead in M&M’s rise in Ebit margin in the PIPELINE that does not mean investors
80,000
mies and corporate earnings are driving the activity. shares, you would have doubled your auto segment. In FY24, trac- should expect a smooth ride.
There are plenty of potential drivers to keep the rally roll- money by now. While M&M has tor industry volumes fell by THE company plans The sharp 35% rally in the
ing, such as the $6 trillion sitting in money market funds. expanded its portfolio to cater to India’s 60,000
7% as the rural market to launch nine ICE
SUVs, seven BEVs
last two months is making
“From a macro perspective, there are no red signals,” said SUV-crazy car market, investors looking remained under pressure. and seven LCVs by many analysts skeptical
40,000
Salman Ahmed, global head of macro and strategic asset to make similar outsized gains hereon Despite this, M&M gained 2030 about the near-term upside
allocation at Fidelity International. BLOOMBERG are likely to be disappointed. Still, ana- market share of 40 bps to left for the stock, which hit a
20,000
lysts are upbeat about the company’s reach 41.6%. In FY25, a M&M aims targeted new 52-week high of

T6
capacity expansion
prospects. revival in the rural sector, to 72,000 units per ₹2,557.95 on Friday.
0
A robust product pipeline, compris- aided by India Meteorologi- month by “The impressive hit rate

W
Q1FY23 Q4FY24
ing internal combustion engine (ICE) Source: Company, Motilal Oswal Financial Services cal Department (IMD)’s FY26-end on new SUV products and

3i
and electric vehicle (EV) models, a forecast of an ‘above normal’ the better-than-expected
PRANAY BHARDWAJ/MINT
planned capital expenditure (capex) of monsoon, and expectations tractor demand recovery,

K
₹37,000 crore over the next three years, ₹27,000 crore, with ₹12,000 crore allo- pact SUV, which received 50,000 book- of higher farm sector allocation post- we feel, is well captured by stock rerat-

dc
and targeted capacity expansion to cated for EVs. It plans to launch nine ICE ings in just 60 minutes. elections, can be additional catalysts. ing in the last two months...With the
72,000 units per month by the end of SUVs, seven battery electric vehicles “We see M&M’s production ramp up “We continue to remain bullish on 1-year forward P/E and P/BV valuations

Q
FY26 (up from 49,000 per month in (BEVs), and seven light commercial improving in FY25, with new model M&M as it should benefit from increas- adjusted for subsidiaries’ value inching

FY24) are the key drivers for the home-
grown auto major.
M&M's increased focus on EVs is evi-
dent from its planned auto capex of
vehicles (LCVs) by 2030.
In FY25, the management is bullish
on the upcoming five-door Thar and
the recently-launched XUV 3XO com-
Li
launches. We also see M&M offering a ing its presence in high growth cate- near +2 standard deviations above the
differentiated BEV as a near-term cata- gory, encouraging response from con- 10-year mean, we remain cautious and
5o
lyst, helping it build on its success
amongst the urban affluent customer
sumers..., capacity expansion to reduce retain HOLD rating on the stock,”
the waiting period and timely execution InCred Equities said.
w
H
4n

Mark to Market writers do not have positions in the companies they have discussed here
Most of the earnings growth has been attributed to Big
uf

Tech, but broader participation is improving. ISTOCKPHOTO

lx

S&P profit recovery revs up on MFs infuse ₹1.3 tn into equities in FY24 amid global volatility
/D

Big Tech and strong consumer

m

Now that Corporate America’s earnings season is draw-

ing to a close, the takeaway is clear: A broad swath of com- PTI dejini COO Trivesh D said. data showed. over the past few years.
co

panies say the worst of last year’s profit pain is over. With feedback@livemint.com Additionally, the growing In stark contrast, foreign Notwithstanding occasional
90% of quarterly reports in, per-share earnings of S&P interest in systematic invest- portfolio investors (FPIs) have challenges, the Indian stock
p.

NEW DELHI
500 companies have climbed 7.3% in the first three ment plans (SIPs) on the back of been withdrawing money from markets have generally shown a
ap

M
months of 2024—on track for the second-best profit utual funds (MFs) astonishing compounding sto- equities and pulled out over positive trajectory, thus catch-
growth in two years, according to Bloomberg Intelli- showed strong confi- ries by influencers and industry ₹25,000 crore this year so far, ing investors’ interest.
ts

gence. Excluding charges from big drug companies, dence in Indian equi- veterans has perked investors, owing to a volatile global envi- Equity has been one of the
profit growth sits at 10.5%—on pace for its best period ties this year, injecting around who otherwise wish to stay ronment, uncertainty over rate best-performing asset classes in
ha

since late 2021. “Most of the earnings growth has been ₹1.3 trillion, driven mainly by away from the markets, to start cuts, and profit booking. recent years, and consequently
attributed to Big Tech again, but broader participation significant retail investor inter- participating through these This is a great sign for the receiving robust flows from
t.w

is improving, which will allow the stock market to have est and the robust performance mutual funds, he added. Indian markets, symbolizing domestic investors like mutual
another leg up,” said Brooke May, managing partner at of the stock market. According to the data from the falling dependency on for- funds, Himanshu Srivastava,
ha

Evans May Wealth. “Stock valuations are a bit expensive, Mutual funds, which manage the Securities and Exchange eign money and the strengthen- associate director, manager
but that’s in anticipation of stronger earnings growth in long-term wealth for domestic Board of India (Sebi), MFs MFs invested ₹26,038 crore in the first fortnight of the ongoing ing of retail individuals and research, Morningstar Invest-
//c

the coming quarters.” The outlook is getting better, with investors, prioritize the Indian invested ₹26,038 crore in the month and ₹20,155 crore in April. HT DIIs, including mutual funds, to ment Research India, said.
optimism returning to corporate boardrooms on a resil- market’s underlying growth first fortnight of the ongoing keep markets afloat. For domestic investors, local
s:

ient economy that can support stock gains as profits grow potential and are less rattled by month and ₹20,155 crore in net of ₹44,233 crore. With the latest deployment, This steady flow from mutual markets are the most accessible
tp

for a third straight quarter. That said, analysts’ earnings short-term events like elec- April. Moreover, the highest MF Also, they invested ₹14,295 mutual funds investment in funds and other domestic insti- investment option, which is
guidance for all of 2024 has barely budged at around tions, which allows them to buying for 2024 was experi- crore in February and ₹23,010 equities reached around ₹1.3 tutional investors (DIIs) has why they continue to invest in
ht

$245 per share. BLOOMBERG keep investing in equities, Tra- enced in March, as they put in a crore in January. trillion in 2024 (till May 16), the supported the equity markets them, he added.

‘Intermittent bouts of volatility not necessarily a bad sign’ Polls, China trigger
Dipti Sharma
dipti.sharma@livemint.com
towards equities, aiming for a
larger portion of their asset
can find some level of certainty. market and AMCs from off-
Our focus extends beyond shore capital were previously
sharp FPI outflows
MUMBAI allocation to shift in that direc- short-term growth; sustainabil- routed through various off-
tion. ity is key. While some compa- shore booking centres like PTI

I
ntermittent bouts of stock How do you perceive the nies are thriving now, Singapore and Mauritius. Now, feedback@livemint.com
market volatility can be election’s impact on sectors increased capital and competi- with Gift City, we have a local NEW DELHI
expected until the electoral currently experiencing tion in their segments could jurisdiction. We are consider-

outcomes, but this is not neces-
sarily a bad sign, says Ashish
Gupta, chief investment offi-
cer, Axis AMC, which manages
around ₹2.6 trillion in assets. In
fact, he believes periodic cor-
rections are healthy as they
eliminate excesses, and create
fresh investment opportuni-
ties. Moreover, Gupta noted
that investors seem to favour
F
growth, such as manufac- impact their prospects in the ing setting up feeder funds for oreign investors have
turing and related indus- next 18 to 24 months. Banking non-resident offshore inves- pulled out a massive
tries? and finance sector has under- tors to invest in our funds ₹28,200 crore from
Elections in India are keenly performed recently due to through this platform. How- Indian equities so far this
anticipated by the markets, heightened perception, regula- ever, it is too soon to predict month, owing to uncertainties
however, the primary interest tory risks. However, we believe appetite growth. In the short about the outcome of the gen-
lies in policy continuity and the these proactive regulations will term, we don’t expect immedi- eral elections and attractive
set of reforms brought in by the ensure longevity of the credit ate changes as other centres are valuations of Chinese markets.
government. In the lead up to cycle and aid financialization. already available for invest- The withdrawal was way
the elections, it is common to Therefore, it’s essential to ment. With Gift City’s develop- higher than a net pullout of
see a softness in government assess whether a company pos- ment, there may be some sub- over ₹8,700 crore in April on FPIs have pulled ₹28,200 crore

equities, aiming to allocate a
greater portion of their portfo-
lios to stocks. Edited excerpts:
What is the overall investor
sentiment? Are they mostly
staying cautious, waiting to
enter the stock market with
more optimism after the
elections?
Market flows seem to be sta-
bilizing, thanks in part to regu-
latory measures from both the
Reserve Bank of India (RBI) and
Securities and Exchange Board
of India (Sebi) to prevent mar-
ket excesses. While it’s tempt-
ing for markets to surge daily,
such rapid gains are unsustain-
able in the long term.
Over the last two years,
investors have maintained a
consistent approach on the
equity side. Most of the invest-
ment flows we receive are
through systematic investment
plans (SIPs). Rather than mak-
ing lump sum investments
before events or timing the
market, people are opting for
systematic asset allocation to
equities, avoiding making deci-
sions based solely on market
levels. It seems they are leaning
‘
spending or decision making at sesses a lasting competitive stitution from other cen- concerns over a tweak in out of Indian equities so far in
a policy level. However, this One can see intermittent seeing ongoing capacity expan- edge against tres, but over India’s tax treaty with Mauri- May. ISTOCKPHOTO
slowdown is typically short bouts of volatility during the sion. The automotive industry potential new time, as we intro- tius and a sustained rise in US
lived due to the enforcement of period till the electoral out- is undergoing capex not just for competitors. This Market flows seem duce new prod- bond yields. net outflow of ₹28,242 crore in
the code of conduct, and the comes. However, this is not capacity expansion but also to includes exclu- to be stabilizing, ucts and innova- Before that, FPIs made a net equities this month (till May
impact is temporary. The real necessarily a bad sign. Markets transition to electric vehicles. sive products, thanks in part tions, we antici- investment of ₹35,098 crore in 17). There are two main rea-
focus is on post-election policy need to consolidate; in fact, Auto component companies innovative tech- pate gradual March and ₹1,539 crore in Feb- sons why FPIs have been sell-
continuity and any govern- occasional corrections are are gaining market share with nology, efficient to regulatory growth. Overall, ruary. Going forward, there is ing in FY2025. First, there’s
ment initiatives, like the often- healthy as they clear out the global OEMs as they seek new processes, or spe- measures from the we feel this will likely to be a dramatic change uncertainty about the general
discussed first hundred-day froth and provide investment supply chains for their EV man- cial market RBI and Sebi. show results in foreign portfolio investors’ elections. FPIs generally don’t
plan. I do not believe that man- opportunities. ufacturing ambitions. There is access. over a longer (FPIs) equity flows in response like uncertainty; they prefer to
Ashish Gupta
ufacturing sector’s outlook will Could you name a few sec- also a noticeable trend in the Without these, Chief investment officer, period and help to election results. play it safe and lock in the
change drastically based solely tors that could be a part of defence sector towards a company may Axis AMC bring more flows Political stability will attract profit they made last year. Sec-
on the electoral outcome. The longer cycles? increased indigenization, ben- currently prosper to India. huge inflows in the Indian ond, the market valuations are
manufacturing and industrial There’s a need for increased efiting domestic companies. and yield profits, What out- market, VK Vijayakumar, chief high, MojoPMS chief invest-
story is quite investment in Construction firms are seeing but it faces potential challenges comes are you anticipating investment strategist, Geojit ment officer Sunil Damania
structural and
we have taken
m INTERVIEW power —both in
terms of decar-
steady growth due to infra-
structure developments and a
when new competitors from this? Will it result in a
emerge. With rapid capacity higher number of clients or
Financial Services, said. Fol-
lowing the Lok Sabha elec-
said. In addition, FPIs are real-
locating funds to China and
steps to start bonizing the healthy real estate cycle. These increases in industries such as an increase in inflows? tions, FPI inflows into India Hong Kong, which are trading
building local value chain in economy as well as to cater to aren’t temporary flashes but cement, there’s a cautious We are venturing into new could strengthen due to three at attractive (cheaper) valua-
many products, which if we incremental demand. This is are structural drivers, and we stance towards smaller enti- terrain and have not estab- key factors—potential easing tions compared to Indian
look at other countries – have true globally as well, with the are at the early stages of a multi- ties. Another dimension to lished specific targets. Our of interest rates by the US Fed- stocks, Anirudh Naha, CIO-Al-
built over time. We believe that grids ageing in many devel- year cycle. consider is as the large get AMC has a partnership with eral Reserve, positive resolu- ternatives of PGIM India Asset
this is a long-term trend, and oped economies. With more Do you see any dark horses? larger, how do new companies Schroders, and we are in dis- tions in global geopolitical Management, said.
the momentum will only build power coming in, there’s a cru- The market has been quickly adapt and grow in this environ- cussions with their teams tensions and India’s increasing Vijayakumar believes that
up with time as other compa- cial need to invest in transmis- absorbing positive news, leav- ment. regarding how these funds can weight in the MSCI Emerging the main trigger for the FPI
nies see execution and benefits sion infrastructure. This sets off ing few hidden gems. The real How will the development be utilized by their clients to Markets Index projected to selling has been the outper-
of making in India. a virtuous cycle, involving vari- confidence, however, stems of Gift City contribute to the gain exposure to India through exceed 20% by mid-2024, Kar- formance of the Hong Kong
It seems the market has ous entities manufacturing from gauging the longevity of Indian capital markets and our funds. thick Jonagadla, smallcase index Hang Seng, which shot
already accounted for the equipment like transformers the business cycle. The ques- asset management compa- While we are in the process manager and founder, Quan- up by 19.33% during the last
impact of elections, expect- and capacitors. This is the tion is whether firms can main- nies (AMCs) in terms of of establishing a fund, the tace Research, said. one month. They are moving
ing policy continuity. So, structural story. tain their profitability and attracting inflows? selection of products to be According to the data with money from expensive mar-
what factors should we pay Sectors like cement and expansion over the coming two It’s still early days, so the included is still under consider- the depositories, foreign port- kets like India to cheap mar-
attention to after the polls? pharmaceuticals have been to five years—this is where we inflows into the Indian capital ation. folio investors experienced a kets like Hong Kong.
LIVEMINT.COM CORPORATE MONDAY, 20 MAY 2024
CHENNAI 05

Tata Motors
CFO churn sheds light on raises capex
IT sector’s bean counters for new tech,
products
PTI
feedback@livemint.com
Persistent’s Teredesai latest CFO to quit, the 7th to do so in India’s software industry in 2 yrs NEW DELHI

T
JSW Steel joint MD and CEO Jayant Acharya. @THEJSWGROUP/X ata Motors group has
Jas Bardia raised its investment
CFO shift
JSW Steel expects jas.bardia@livemint.com
BENGALURU At least seven of India's 14 top IT firms have witnessed CFO churn in the past two years
Current CFO
Date of
joining Former CFO Reason for resignation FY24 Revenue (in $ million)
outlay for FY25 to
₹43,000 crore for new prod-
ucts and technologies, with its

improvement in
S
even chief financial officers British arm Jaguar Land
Cognizant*
at India’s top IT companies Jatin Dalal (came from Wipro)
Dec 2023 Jan Siegmund Retirement 19,353^ Rover absorbing the maxi-
have moved on in the last 24 mum share, according to a
months, throwing the light Infosys senior company official.
margins in FY25 counters.
on the sector’s bean

The latest was Vinit Teredesai who

Jayesh Sanghrajka (internal)

Wipro
Apr 2024

Sep 2023
Nilanjan Roy

Jatin Dalal
To pursue personal aspirations

To pursue other career

Naman Suri & Nehal Chaliawala
NEW DELHI/MUMBAI
expenses. The cost of raw mate-
rials consumed rose to ₹24,541
crore in January-March, against
joined Persistent Systems Ltd from
LTI Mindtree, where he was chief
financial officers (CFOs) since its for-
opportunities 10,805
18,562
In FY24, Tata Motors group
had given a guidance of £3
billion investment for Jaguar
Aparna C. Iyer (internal candidate)
Land Rover (about ₹30,000
Tech Mahindra crore) and ₹8,000 crore for
Jun 2022 Milind Kulkarni Retirement 6,277
Rohit Anand (internal candidate)
Tata Motors—a total of about

J
SW Steel Ltd expects to ₹23,905 crore in the same mation in late 2022. LTIMindtree To pursue other career ₹38,000 crore.
Apr 2024 Vinit Teredesai opportunities 4,287
improve its margins in the period of FY23. Consolidated Earlier, CFO departures were seen Vipul Chandra (internal candidate
from group company L&T)
“Investment by JLR ended
ongoing fiscal year, driven Ebitda, or earnings before at India’s biggest IT firms including at £3.3 billion (more than
Persistent Systems 1,186
by cooling input costs, ris- interest, tax, depreciation, and Infosys Ltd, Cognizant Technology Vinit Teredesai (came from LTIMindtree)
May 2024 Sunil Sapre Retirement ₹33,000 crore), and Tata
ing steel prices and enhanced amortization, dropped 15% Solutions Corp, Wipro Ltd, Tech Motors did more than ₹8,200
operational efficiencies, joint sequentially to ₹6,124 crore. Its Mahindra Ltd, LTIMindtree Ltd and Coforge
Jan 2024 Ajay Kalra
Personal reasons and to pursue
1,119 crore. So, the total we ended
other opportunities
managing director (MD) and operating margin stood at 13.2% Coforge Ltd. Saurabh Goel (internal candidate) was at about ₹41,200 crore

T6
chief executive officer (CEO) during the quarter. Imports Two of the seven CFOs have *Cognizant is considered an Indian heritage IT company; More than 70% of its workforce is based in India; ^Cognizant's annual revenue is as of the fiscal year ended investment in FY24,” Tata
Jayant Acharya said. from China, though, remain a switched to a new IT company, while December 2023 because it follows a January-December financial year; Note: Indian IT firms follow an April-March financial year Motors Group CFO P.B. Balaji

W
Source: Mint research
“We had a strong financial cause for concern, given their the others retired or left to pursue said in an earnings confer-

3i
SARVESH KUMAR SHARMA/MINT
year (FY24) in demand is poised other professional and personal ence.
spite of Q4 chal- The company to remain flat opportunities. their companies’ respective CEOs, nies tend to be cash-rich, and hence, most top bosses in the IT companies Coming to FY25, he said,

K
lenges. We expect reported a 65% while global Most of the exits took place in four barring Cognizant, where Dalal joined the role of the CFO goes beyond have been changed if there has been a for JLR, the investment will

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that FY25 will fall in profit demand is of India’s top six IT companies, which almost a year after S. Ravi Kumar took accounting and tax management to churn in top management. A lot of be “more like £3.5 billion,
continue to be during Q4FY24 expected to reported a collective revenue of $40 over as CEO. Dalal joined Cognizant treasury, cross border financial plan- them leave because they are probably broadly ₹35,000 crore,

Q
good as well,”
due to high input increase by 30 billion in FY24, which is 16% of India’s from Wipro as its CFO in December ning and cash management,” Subra- offered a better package,” said Omkar because all the product plans

Li
Acharya told Mint. million tonnes $250-billion IT Industry. 2023. manian added. Tanksale, research analyst at Axis we had are coming together
“This is costs and other (mt). About Five out of the seven CFOs who Securities. (next year)”.
because the cost
will come down
expenses 35-40% of this
increased demand
were appointed were internal
candidates, signalling the top
TOP IT EXITS 5o “Because IT companies have
been hiring fewer employees
He further said, “There is a
phasing issue we are dealing
w
and the prices are is likely to come management’s trust in its own MOST exits took TWO of the 7 CFOs FIVE out of the ALL CFO compared to previous years, the (with), and these products
H

now picking up after bottom- from India, Acharya said. ranks. place in 4 of India’s switched to a new IT seven CFOs who appointments did top management looks to hire have to (be) launched on
top six IT cos, which firm, while others were appointed not immediately
4n

ing out. So, we expect prices to “India is growing at a faster After Jatin Dalal quit Wipro reported a collective retired or left for were internal follow those of their CXOs better suited to their needs,” time”. For Tata Motors, Balaji
be stable, operating efficiencies rate than other economies and after more than a decade to join revenue of $40 bn other opportunities candidates cos’ respective CEOs added Tanksale. said, “We will repeat the
uf

to improve with some cost-sav- we have witnessed Chinese Cognizant, Wipro handed the keys India’s top four IT companies ₹8,000-odd crore range. So,
ing projects, enhancing our exports going up overall in the to Aparna Iyer, who has been with saw their headcount cumulatively JLR is about 6% increase and
lx

margins and the absolute world this year also. We remain the company for two decades, going Shriram Subramanian, founder of Not all analysts were of the same drop by more than 60,000 on a yearly Tata Motors is flat. So, that’s
/D

Ebitda,” he said, adding that concerned about the imports against former chief executive officer proxy advisory firm InGovern view. basis in FY24. how the investment is (for
sales volumes will also pick up coming into the country. Last (CEO) Delaporte’s strategy of bringing Research Services, said companies “A change in chief financial officers Queries emailed to Cognizant, FY25)”.
m

after the national elections. year, these imports from China outside hires to return the company to needing a new culture altogether have does not make any difference to the Wipro, Tech Mahindra, LTIMindtree, He said the investment is
JSW Steel reported a 65% fall went up by 93% and stood at growth. their CEOs bring in their own candi- company as these are all cash-rich Persistent Systems, and Coforge “all about products and tech-
co

in profit during Q4FY24 due to about 2.7 mt,” he added. Notably, all CFO appointments have dates as CFOs. companies and there is no real need to remained unanswered, while Infosys nologies” for JLR and Tata
high input costs and other not immediately followed those of "Most top-tier IT services compa- raise more capital. Not only CFOs, declined to comment. Motors.
p.

naman.suri@livemint.com
ap
ts
ha
t.w
ha

SEPSET CONSTRUCTIONS LIMITED PRIAPUS INFRASTRUCTURE LIMITED

CIN: U45300HR2007PLC117953 CIN: U14290HR2009PLC118878
//c
s:

EXTRACT OF AUDITED FINANCIAL RESULTS FOR QUARTER AND EXTRACT OF AUDITED FINANCIAL RESULTS FOR QUARTER AND
tp

FINANCIAL YEAR ENDED MARCH 31, 2024 FINANCIAL YEAR ENDED MARCH 31, 2024
(Rs.in thousands except per share data) (Rs.in thousands except per share data)
ht

Quarter ended Year ended Quarter ended Year ended

Sl Sl
Particulars March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 Particulars March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023
No. No.
(Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited)

1 Total income from operations 1,17,429.10 1,15,033.02 4,19,754.14 4,12,798.77 1 Total income from operations 11,329.96 10,372.15 48,072.80 41,559.43

Net profit/(loss) for the period (before Net profit/(loss) for the period (before
2 tax, exceptional and extraordinary 50,036.20 53,045.49 1,69,699.69 1,01,160.27 2 tax, exceptional and extraordinary 3,505.96 5,061.35 21,598.42 (24,661.42)
items)# items)#

Net profit/(loss) before tax for the period Net profit/(loss) before tax for the period
3 (after exceptional and extraordinary 50,036.20 53,045.49 1,69,699.69 1,01,160.27 3 (after exceptional and extraordinary 3,505.96 5,061.35 21,598.42 (24,661.42)
items)# items)#

Net profit/(loss) after tax for the period Net profit/(loss) after tax for the period
4 (after exceptional and extraordinary 36,984.25 40,057.49 1,26,299.69 77,694.85 4 (after exceptional and extraordinary 2,644.12 3,787.50 16,162.58 (18,388.63)
items)# items)#

Total comprehensive income for the Total comprehensive income for the
period [Comprising profit/(loss) (after period [Comprising profit/(loss) (after
5 36,562.71 40,057.49 1,25,878.15 77,694.85 5 2,429.67 3,787.50 15,948.13 (18,388.63)
tax) and other comprehensive income tax) and other comprehensive income
(after tax)] (after tax)]

6 Paid-up equity share capital 2,34,154.36 2,34,154.36 2,34,154.36 2,34,154.36 6 Paid-up equity share capital 1,017.00 1,017.00 1,017.00 1,017.00

Reserves (excluding revaluation Reserves (excluding revaluation

7 7,68,709.74 6,42,831.59 7,68,709.74 6,42,831.59 7 95,194.11 79,245.98 95,194.11 79,245.98
reserve) reserve)
8 Net worth 96,211.11 80,262.98 96,211.11 80,262.98
8 Net worth 10,02,864.10 8,76,985.95 10,02,864.10 8,76,985.95
9 Paid-up debt capital 1,25,600.00 1,37,199.98 1,25,600.00 1,37,199.98
9 Paid-up debt capital 16,64,100.00 17,79,699.98 16,64,100.00 17,79,699.98
10 Debt equity ratio (in times) 1.30 1.70 1.30 1.70
10 Debt equity ratio (in times) 1.66 2.02 1.66 2.02
Earnings per equity share (face value of
Earnings per equity share (face value of 11
11 Rs. 10 each)
Rs. 10 each)
- Basic and diluted earnings per equity
- Basic and diluted earnings per equity 12 26.00 37.24 158.92 (180.81)
12 1.58 1.71 5.39 3.32 share (Rs.)*
share (Rs.)*
Capital Redemption Reserve - - - -
Debenture Redemption Reserve 2,09,356.85 1,50,348.95 2,09,356.85 1,50,348.95
13 Debenture Redemption Reserve 13,430.00 9,387.90 13,430.00 9,387.90
13 Debt service coverage ratio (in times) 2.07 2.14 1.88 1.73
Debt service coverage ratio (in times) 1.73 1.83 2.10 1.62
Interest service coverage ratio (in times) 4.26 4.19 3.73 3.34
14 Interest service coverage ratio (in times) 2.88 4.28 4.82 3.69
* The earnings per equity share are not annualised except for year ended March 31, 2024 & March 31, 2023.
#
The Company does not have any exceptional and/or extraordinary item. * The earnings per equity share are not annualised except for year ended March 31, 2024 & March 31, 2023.
Notes:
#
The Company does not have any exceptional and/or extraordinary item.
a) The above information is an extract of the detailed format of financial results for the quarter & financial year Notes:
ended March 31, 2024 filed with the stock exchange under regulations 52 of SEBI (Listing obligations and a) The above information is an extract of the detailed format of financial results for the quarter & financial year
disclosure requirements) Regulations 2015. The full format of financial results for the quarter & financial year ended March 31, 2024 filed with the stock exchange under regulations 52 of SEBI (Listing obligations and
ended March 31, 2024 are available on the websites of BSE Limited at www.bseindia.com and of the Company disclosure requirements) Regulations 2015. The full format of financial results for the quarter & financial year
(https://www.sembcorpindia.com/sepset.html). ended March 31, 2024 are available on the websites of BSE Limited at www.bseindia.com and of the Company
(https://www.sembcorpindia.com/priapus.html).
b) For the other line items referred to Regulations 52 (4) of SEBI ( Listing obiligations and disclosure requirements)
Regulations 2015, pertinent disclosures have been made to the Stock Exchange and are available on the websites of the b) For the other line items referred to Regulations 52 (4) of SEBI ( Listing obiligations and disclosure requirements)
Company (https://www.sembcorpindia.com/sepset.html). Regulations 2015, pertinent disclosures have been made to the Stock Exchange and are available on the websites of the
Company (https://www.sembcorpindia.com/priapus.html).
c) The above financial results have been reviewed and approved by the Board of Directors in its meeting held on May 16,
c) The above financial results have been reviewed and approved by the Board of Directors in its meeting held on May 16,
2024. The Statutory Auditor of the Company have carried out audit of the results for the year ended March 31, 2024.
2024. The Statutory Auditor of the Company have carried out audit of the results for the year ended March 31, 2024
For and on behalf of Board of Directors of, For and on behalf of Board of Directors of,
Sepset Constructions Limited Priapus Infrastructure Limited
Sd/- Sd/-
Harsh Bansal Harsh Bansal
Place: Gurugram Director Place: Gurugram Director
Date: May 16, 2024 DIN: 07298251 Date: May 16, 2024 DIN : 07298251
Registered & Corporate Office Address: Registered & Corporate Office Address:
Building 7A, Level 5, DLF Cyber City, Gurugram – 122002, Haryana, India, Tel: (91) 124 6986700 Building 7A, Level 5, DLF Cyber City, Gurugram – 122002, Haryana, India, Tel: (91) 124 6986700
Fax: (91) 124 6986710, Email ID: cs.india@sembcorp.com, Website: https://www.sembcorpindia.com/sepset.html Fax: (91) 124 6986710, Email ID: cs.india@sembcorp.com, Website: https://www.sembcorpindia.com/priapus.html
06 MONDAY, 20 MAY 2024
CHENNAI CORPORATE LIVEMINT.COM

Attero plans
to invest over SC ruling gives telcos interest
₹8,000 cr
in 5 years
savings worth ₹3,000 crore
PTI
feedback@livemint.com
new delhi Apex court has ordered waiving interest on tax levies due to its 2023 order on licence fee

E
lectronic waste and bat-
tery recycling company Gulveen Aulakh
Attero plans to invest gulveen.aulakh@livemint.com Until last year, the law didn’t specify tax rates on online gaming, and
around ₹8,300 crore in the new delhi firms paid 18% GST on the platform fee or commission. ISTOCKPHOTO
next five years to ramp up its

T GST Council to hear

capacity, the company’s chief
executive and co-founder
Nitin Gupta said.
At present, the company
has the capacity to recycle up
to 1,44,000 tonnes of elec-
tronic waste (e-waste) and
15,000 tonnes of lithium-ion
battery annually. “In the next
five years, we will obviously
be investing roughly around
$1 billion overall, including all
forms of capital—debt, equity
and sort of other non-diluted
forms of capital,” Gupta
told PTI.
He said the company is
elecom service providers,
including Bharti Airtel,
Vodafone Idea and Tata
Communications, are set to
save about ₹3,000 crore fol-
lowing a Supreme Court order released
gaming firms’ plea
on Sunday.
The apex court has waived the inter- FROM PAGE 1 believed that until 1 October,
est levy on tax arising from its October GST was neither payable on
2023 ruling that said annual licence the government’s claim to the entire bet value for games
fees paid by telcos would be treated as money—actionable claim in offered by them nor was the
capex, which are not tax deductible. tax parlance—was always 28% GST rate at 28%.
The SC had overturned a 2013 Delhi tax on the full deposit amount. “The tax demand in some of
High Court ruling that had said licence Since the government holds the cases for the period prior to
fees comprised revenue expenditure this view, giving relief on the October 2023 is significantly
and were not taxable. tax demand would require a higher than the revenues of
While the tax will still have to be strong rationale. these gaming companies.

T6
growing 100% year-on-year paid, the interest component on the tax Queries emailed to a Besides, the government’s
and gradually increasing has been waived by the top court in its spokesperson for the finance revenue from this sector has

W
capacity. “A greenfield facility latest order. That is significant, consid- ministry and the GST Secre- gone up after the regime

3i
in Europe will come up in ering that the interest portion would The SC had overturned a 2013 Delhi HC ruling that said licence fees comprised revenue expenditure and were not taxable. PTI tariat on Thursday seeking change in October 2023. In
Poland. Work has already have been higher than the tax demand, comments remained unan- view of these circumstances, it

K
started there. In India, we are since the tax outgo on licence fee would made an additional tax provision of the Supreme Court has exercised its a capital expenditure that had to be swered till publishing. may make sense to evolve a

dc
building another greenfield be calculated since 1999, when the new ₹226.3 crore, Vodafone Idea provi- extraordinary jurisdiction while pass- amortised over a period of years under An executive from a leading solution on the tax demands
facility. We are finalizing the telecom policy was issued, executives sioned ₹820 crore and Tata Communi- ing the present order and has directed the Income Tax Act, 1961. After the online gaming firm said the for the prior period that is a

Q
space in Andhra Pradesh/ aware of the details said. cations provisioned around ₹200 crore, lower Courts to keep this decision in judgment, the licence fee would have industry’s complaint was win-win for the industry and

Jharkhand. Our e-waste
(recycling) capacity will get to
roughly around 4,15,000 ton-
nes per annum. Our battery
(recycling) capacity will
Li
“We have given our thoughtful con- as per the telcos’ quarterly reports. mind while deciding on pending to be treated as a capital expense, with about the tax notices for the the government,” said
sideration to the submissions advanced “This is a welcome decision by the appeals,” said Vishwas Panjiar, Partner, a provision for amortization of the pre-October 2023 period and Abhishek Jain, partner and
at the Bar. We find that since the judg- Hon’ble Supreme Court,” said S.P. Nangia Andersen Llp.
ment of this Court is dated 16.10.2023, Kochhar, director general, Cellular
licence fee over the licence period, and
The apex court’s latest ruling was on would hence lead to a higher tax outgo.
5o not about the new regime,
which they are complying
national head of indirect tax at
KPMG in India.
w
and having regard to the Telecom Pol- Operators Association of India, which an appeal filed by Bharti Hexacom, Currently, telcos treat licence fees as with. The executive cited an To be sure, Central Board of
H

broadly reach around 50,000 icy, which commenced from the year represents all carriers in the country. which had asked the court for waiving an expense that is tax deductible. The industry plea before tax offi- Indirect Taxes and Customs
4n

tonnes per annum in a year,” 1999, the payment of interest for court’s ruling meant that telcos cials stating online gaming (CBIC) chairman Sanjay
Gupta said. the period for which the tax Big relief were required to reverse the companies are a platform, and Kumar Agarwal had in an
uf

The company has set a demand is now to be met in respect accounting entries passed over the there is no actionable claim, interview to Mint published on
target to cross $2 billion, of these cases stands waived,” Justi- While the tax will That is significant, The interest would following the past two decades (from 1999 and that actionable claim can 3 February and his predeces-
lx

about ₹16,500 crore revenue
ces B.V. and Ujjal Bhuyan said in still have to be paid,
interest has been
considering that the
interest portion
have been ₹3,000-
3,500 crore, which
October 2023 order,
telcos had made
onwards), for tax purposes, leading be at most between the play- sor Vivek Johri in an interview
/D

by 2027. the order seen by Mint. waived by the top would’ve been higher would not be provisions against to higher income in the year of ers. The executive also said to Mint published on 14 July
“Industry is growing at “This is a very good judgement court than the tax demand payable now the higher tax outgo expenditure. Telcos were, hence, that GST has been “duly paid 2023 have clarified that recov-
m

roughly around 30% per that would reduce interest liability required to recompute taxes for all and returns were filed” and ery of the tax dues from online
annum. We are growing at substantially for the industry. A these years and had become liable that the tax authority decided gaming companies can take
co

more than 100% y-o-y. We very welcome move and a huge res- The order also stated that the order the interest on tax that would have to be to pay up accrued interest on the delay to take action after five years of place only after the decision of
had revenue of around ₹285 pite,” said Prashant Singhal, EY’s global shall not be cited as a precedent as it recomputed from 2000-2001, follow- in payment of taxes. “It was submitted GST implementation. “This the Supreme Court, where the
p.

crore in 2022-23 and ₹440 telecom, media and technology leader was passed on account of peculiar facts ing the apex court’s October 2023 rul- that a heavy burden would now be on will shut down the industry as matter is pending. GST
ap

crore in 2023-24. This year for emerging markets. of the case and that appeals related to ing, as the period of the demand ranged the assessees as from the assessment the demands are higher than authorities’ argument that
we expect to cross ₹1,000 According to estimates, the interest the matter in all fora including the high from the commencement of the new year 2000-2001 onwards the tax the revenues for the last five online gaming attracts 28%
ts

crore in revenue. To achieve would have been in the range of court, the income tax appellate tribunal Telecom Policy of the year 1999. demand would have to be recomputed years,” the executive said, GST, like betting, was not
the $2 billion target, we just ₹3,000-3,500 crore, which would not and others would keep in mind this SC The October 2023 ruling stated that and met. Therefore, the Assessees have requesting not to be named as upheld last May by the Karna-
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need to invest a few hundred be payable now. Following the October order, while disposing of the appeals. annual licence fee was not revenue in fact sought for waiver of interest for the matter was sub-judice. taka High Court that favoured
crores to ramp up capacity,” 2023 order, telcos had made provisions “Considering the ramifications of its expenditure and, therefore, not the said period,” the order issued Sun- According to experts, online the industry, prompting the
t.w

Gupta said. against the higher tax outgo. Airtel had earlier order on telcos, it appears that deductible as a business expense. It was day stated. gaming platforms always Centre to move the apex court.
ha
//c

Kumar, Pai to exit m MINT Q4 EARNINGS TRACKER Bank of Maharashtra tops biz
s:

The combined revenue of the companies that have declared their March-quarter
tp

Byju’s panel amid financial results so far has risen 10.6% year-on-year, while net profits have risen 10.1%,
growth in FY24 among PSBs
ht

a Mint analysis showed. Excluding the companies in the banking, financial services
and insurance (BFSI) sectors, the topline grew 4.5%, while profits were down 11.8%.

flurry of lawsuits The analysis covered 1109 BSE-listed companies (including 189 banking and financial
services firms) that had declared their results by Friday and whose data was available
on Capitaline’s database.
PTI
feedback@livemint.com
new delhi
However, SBI’s total business
(deposit and advances) was
about 16.7 times higher at
lowed by the Central Bank of
India with a 50.02% rise at the
end of March 2024.
FROM PAGE 1 Q4 FY24 results so far, BSE-listed firms Upcoming key results this week ₹79,52,784 crore compared to A higher level of current

S
Total: 1,109 companies Excl. BFSI: 920 companies Oil and Natural Gas Corporation Mon, 20 May tate-owned Bank of ₹4,74,411 crore of Bank of Maha- account and savings accounts
tunately, the company got Maharashtra recorded rashtra (BoM) in absolute terms. helps banks to keep their cost of
embroiled in all kinds of litiga- Aggregate revenue ₹25.0 tn ( 10.6%) ₹17.2 tn ( 4.5%)
PI Industries Tue, 21 May the highest growth rate Similarly, BoM continued to funds low.
tion”, the executive cited Sun Pharmaceutical Industries Wed, 22 May
last fiscal in terms of total busi- maintain its top spot in terms of With regard to loan growth,
above said. Aggregate net profit ₹2.5 tn ( 10.1%) ₹1.3 tn ( 11.8%) ness and deposit mobilisation growth in deposit mobilisation, the Kolkata-based UCO Bank
A second executive, also ITC Thu, 23 May among public sector lenders at with a 15.66% rise in FY24. It was a tad higher at 16.38%, fol-
speaking on the condition of Figures in brackets denote year-on-year change for the same set of companies. a time when most banks are was followed by SBI (11.07%), lowed by BoM at 16.30%. SBI
BFSI: Banks, financial services, and insurance. Standalone data used. Ashok Leyland Fri, 24 May
anonymity, said in addition to facing difficulty in achieving Bank of India (11.05%) and also reported 16.26% growth in
the three areas, the advisory Year-on-year change in aggregate results (in %) Total companies: 1,109 double-digit growth. Canara Bank (10.98%). advances in FY24.
panel also worked with Rav- Revenue Net profits
The Pune-headquartered Out of 12 public-sector Loan growth of remaining
eendran to expand the board, lender has registered a 15.94% banks, only these four lenders public sector banks was lower
change the composition of the Q4 FY23 14.7 15.6 rise in the total business could log a double-digit growth than 16% during the fiscal.
board committee, and help Q1 FY24 8.7 52.2 (domestic) in 2023-24, followed in deposits in the financial year On the asset quality
Byju’s settle debt with creditors. Q2 FY24 5.8 58.7 by the country’s largest lender 2023-24. side, BoM and SBI reported
Text messages sent to Kumar and Pai have informed Q3 FY24 9.7 31.5 State Bank of India (SBI) with In terms of low-cost CASA the lowest gross non-perform-
Kumar and Pai seeking com- Raveendran. BLOOMBERG Q4 FY24 10.6 10.1 13.12% growth, according to deposits, the Bank of Maha- ing assets with 1.88% and
ment remained unanswered Analysis by Manjul Paul Standalone data used. Source: Capitaline, Mint calculations
published financial numbers of rashtra continued to top the 2.24%, respectively, as of 31
till press time. month, Byju’s India chief the public-sector banks (PSBs). chart with 52.73% growth, fol- March 2024.
The latest development executive Arjun Mohan SATISH KUMAR/MINT

adds to the woes of Byju’s, once stepped down merely seven

the most valuable homegrown months after joining the firm.
unlisted company, estimated Raveendran, his wife Divya
to be worth $22 billion in 2022. Gokulnath, and brother Riju
Earlier this year, Blackrock, Raveendran are the three
New chief for SBI likely this week; three MDs front-runners
an investor in the company, members of the board.
slashed Byju’s valuation to $1 Byju’s was sanguine when it FROM PAGE 1 major mistakes,” he said. Prior to becoming MD at archery in state mini-Olym-
billion, while another investor, set up the advisory panel last “Resource mobilization will SBI, he was MD & CEO of SBI pics and represented Karna-
Sequoia Capital (now Peak XV year. “This council will play a the condition of anonymity. be another significant chal- Card from August 2020 to taka at the national level.
Partners), has written off its pivotal role in advising and “Whoever becomes the chair- lenge, as changing Indian January 2021, where he over- Tonse’s peers describe him
investment in the online tutor. mentoring Byju’s board and its man, will be good for the bank.” household saving habits is saw key partnerships with as a soft-spoken person, with
The advisory chief executive The FSIB, headed by Bhanu changing and thus will require GPay, PayTM, BPCL, and also strong team-building capabil-
panel was set up The latest officer Byju Rav- Pratap Sharma, former secre- innovative strategies to sup- steered the company through ity. He has worked as staff col-
last July after G.V. development eendran on cru- tary of the department of per- port growth while maintain- the immediate aftermath of lege trainer in Hyderabad and
Ravishankar of only adds to the cial matters that sonnel and training (DoPT), is ing profitability.” the covid outbreak. Bengaluru. He also worked as
Peak XV Partners, woes of Byju’s, shape the com- tasked with the responsibility The veteran banker He was the country head of the MD & CEO of SBI Mutual
Vivian Wu of pany’s future,” of appointing senior execu- The senior-most among the SBI’s US operations from April Funds from August 2020 to
estimated to be
Chan Zuckerberg Think & Learn tives to public-sector financial three candidates is Setty, who 2017 to July 2020, and prior to December 2022.
Initiative, and worth $22 billion had said in a state- institutions. has spent nearly 36 years with that, regional head of East Asia The appointment of a new
Russell Dreisen- in 2022 ment at the time. Email to Sharma and test SBI, and has overseen almost operations at SBI. chairman comes at a time
stock of Prosus Earlier this messages to Setty, Tewari, and all the important verticals. He The front-runners for the post are SBI’s three MDs—C.S. Setty, His peers praise him for his when SBI’s financial perform-
resigned from the year, several Tonse remained unanswered oversaw the ₹1.49 trillion Ashwini Kumar Tewari and Vinay M. Tonse. MINT skill at handling government ance has vastly improved.
board of Think & Learn citing Byju’s shareholders voted to till press time. stressed assets portfolio at the agencies and regulators. “Khara’s main achievement is
poor corporate governance. oust Raveendran at a special ‘Astrong franchise’ peak of the bad loan cycle in various committees set up by At 57, Tewari is the young- The latest MD at SBI that he has been able to improve
Byju’s statutory auditor at shareholder meeting. Byju’s Pointing out that Khara’s 2018, when Rajnish Kumar the Department of Financial est of the three; he joined the Tonse is the latest to take the financial performance of the
the time, Deloitte Haskins & rejected the move, saying the successor inherits a strong was chairman. Services on financial inclu- bank as a probationary officer charge as MD in November bank. Since he took charge as
Sells, also resigned, citing shareholder meeting was franchise, Asutosh Mishra, After he was promoted as sion, small business banking in 1991. 2023. He looks after retail chairman, the share price has
delays in the company sharing “invalid and ineffective”. The head, institutional equities managing director in January and EASE (enhanced access & Tewari, too, has handled var- banking, after his predecessor zoomed from ₹250 levels to
information with it. matter is now before the Kar- research, Ashika Stock Brok- 2020, Setty has overseen sev- service excellence) reforms for ious assignments both within J. Swaminathan was appointed ₹820 per share,” said a former
Byju’s inability to raise more nataka High Court. ing, said the key challenge will eral portfolios including retail, PSU banks. India and abroad. He is cur- as deputy governor of the senior SBI official.
money from investors has There are several insolvency be maintaining growth with- digital banking, and global His peers describe Setty to rently heading corporate bank- Reserve Bank of India (RBI). “While he may not have been
forced the company to let go of proceedings before the NCLT out compromising the quality markets including treasury, be a man of ideas, who is ing and subsidiaries. As the A native of Udupi town in perceived to done anything
thousands of employees, even too. Byju’s also has a dispute of the loan book. international markets and always thinking of what new MD, he has also handed risk, Karnataka, Tonse joined the innovative, Khara did a com-
leading to delays in salaries with Glas Trust Co., the trustee “It’s akin to driving a truck technology. he can do for the bank. compliance, stressed assets, bank in 1988. During his col- mendable job in these uncertain
being paid to its staff. Last representing US lenders. at high speed without making Currently, he is also part of The corporate banker International Banking and IT. lege days, he won medals in times,” the official said.
LIVEMINT.COM CORPORATE MONDAY, 20 MAY 2024
CHENNAI 07

Inter-ministerial task force Multiplex chains renegotiate

rentals as business dwindles
in works to rein in digital ads Lata Jha
lata.j@htlive.com
NEW DELHI

T
he cinema business
model was fairly
Panel to evolve framework to regulate social media ads and oversee compliance straightforward, before
covid and streaming platforms
upended it: multiplexes would
Varuni Khosla & Dhirendra Kumar lease a large space in a mall on
NEW DELHI Why a task force? rent, build theatres and screen
I&B, consumer affairs ministries & Meity are unable to take up all social media ad-related issues. Violations often do not face actions. movies. Elections and cricket

T
hree high-profile ministries extravaganza IPL have further
Responsible authority Regulatory aspect/body What it does at present Provisions/guidelines
that oversee different aspects complicated the movie busi-
of social media advertising Intermediary Guidelines (2021): Obligations for platforms to ness, prompting multiplexes
Ministry of Electronics
Information Technology Governs digital content monitor and regulate content; intermediaries to collect and
are joining hands to create a and Information
store data on users for a period of 18 months and inform them
to rethink their strategy. Multiplex chains have seen their business hit new lows over the
Technology (MeitY) Act, 2000 and intermediaries
task force that can compre- of guidelines Multiplex chains that have past few months. HT
hensively crack down on misleading ads seen their business hit new
1. General guidelines for truthful and non-misleading ads
and fraudulent schemes promoted on ASCI Advertising Standards Self-regulation of
2. Influencer Guidelines: Mandatory disclosure of paid
lows over the past few months, months. around 120 new screens in
digital platforms. Council of India (ASCI) advertising content with big Hindi language Further, several chains are FY25, prioritizing expansion
partnerships
An inter-ministerial task force to Central Consumer
releases having reduced to a insisting that existing rents be efforts in south India and will
monitor and regulate social media ads is Consumer Protection Protects consumers Defines and prohibits misleading advertisements; trickle and few Hollywood hits based on theatre occupancies, partner with developers to
Protection Authority
Act, 2019 from misleading ads empowers the CCPA to take action against violators
being established by the ministries of (CCPA) and successes in local langua- said Abhishek Sharma, jointly invest in new screen
information and broadcasting, electron- Ministry of Information Regulates content across ges such as Tamil or Telugu, director, retail at Knight capital expenditure, it said.
ics and information technology, and I&B Ministry and Broadcasting (I&B various media, including Drafting comprehensive guidelines for digital media ads are trying to convince mall Frank, a realty consulting firm. Transitioning towards a capi-
consumer affairs, according to two peo- Ministry) social media developers to agree to a part- “For certain occupancies, tal-light growth model would
ple aware of the development. Task force: I&B nership model where they can there might be specific MG mean reducing capital
Ministry, MeitY, Collaborative effort to
The task force will create a compre- Potential plan of the
regulate social media
Developing and implementing policies; monitoring co-invest in new theatres. Fur- (minimum guarantee) prom- expenditure in FY25 by 25%
hensive regulatory framework to moni- Ministry of Consumer task force compliance ther, revenue terms are being ised, plus a share of the reve- over FY24.
Affairs ads
tor and regulate social media ads, over- renegotiated. Instead of lease nue. Chains are saying the “The key strategic priorities

T6
see compliance, and take action against Source: Mint research rent, theatre chains want to business is cyclical and at the should help the company in
violators, they said. share revenue based on how moment, no big-star films are charting a new, less capital

W
PRANAY BHARDWAJ/MINT
Currently, the ministry of informa- well a film does. Further, while releasing,” Sharma explained. intensive and incrementally

3i
tion and broadcasting (I&B) deals with I&B, consumer affairs, and Meity did not prehensive response to the issue,” said companies to submit a self-declaration some properties, signed a cou- While some new openings are profitable growth path. Our
advertisement content, while the minis- reply to Mint’s queries. the official quoted earlier. “Digital ads for all ads on all media. Advertisers must ple of years ago, are coming up taking place as per plan, endeavour is to redefine our

K
try of consumer affairs oversees mis- At present, there is no clear way to are spread across the spectrum and upload these on the Broadcast Sewa as planned, oth- Sharma said it is growth strategy, focus on fixed

dc
leading content and surrogate adver- address complex issues such as ads that include both individual influencers as Portal run by the I&B ministry. For ers are waiting for Elections and the also intentional to cost reduction, thus improv-
tisements, and the ministry of informa- fall into the category of dark patterns— well as those done by social media agen- advertisements in print or on the inter- the business to IPL have further hold back a few ing profitability resulting in

Q
tion technology (Meity) governs social surrogate ads that promote a different cies.” net, the ministry has to create a dedi- improve. complicated the properties and enhanced return on capital

Li
media intermediaries or platforms. product, social media short videos or In terms of laws, currently, social cated portal. “The general movie business, wait for the right and free cash flow generation,”
“By themselves, each of the three reels that are actually ads in disguise, ads media ads are governed under the Infor- Firms would have to provide evi- terms that chains time in order to Ajay Bijli, managing director,
ministries is unable to take up all the that bait a consumer only to switch mation Technology Act, 2000, and the dence of uploading the self-declaration
social media advertising-related issues,” what’s actually being promoted. Consumer Protection Act of 2019, along to the relevant broadcaster, printer,
5o
are asking for,
given the current
prompting a
strategy rethink
minimize losses. PVR Inox Ltd, had said in a
“Signings are statement.
w
said one of the persons cited earlier. publisher, TV channel, or electronic state of the busi- by multiplexes happening, A trade analyst said that
H

“For instance, if the I&B ministry TASKS AND GOALS media platform before their ads can ness, are partner- because those are while renegotiations of terms
4n

issued an advisory against offshore be made public. The directives are ship models long-term deals are on, malls cannot afford to
betting and gambling companies, it TASK force will crack THERE are currently THE inter-ministerial THE first order of legally binding under Article 141 of where they (multiplexes) can but some cinemas are on hold run the business without mul-
is Meity that would block them on down on misleading no regulations on task force is likely business will be to
uf

ads, and fraudulent what is to be done to be established by decide what makes

the Constitution and failure to com- co-invest in cinemas along till big releases start arriving,” tiplex chains.
OTT platforms and not I&B directly. schemes promoted with misleading June, people in the for fake ads, identify ply would invite consequences. with developers and a certain he added. “They are seen as anchor
lx

However, even Meity can only do so on digital platforms. contents. know said. firms behind them. The ASCI, however, believes portion of the capital expendi- As part of its earnings tenants, so will be able to dic-
/D

upon receiving directives from the implementing the court’s order ture is demanded upfront. release last week, multiplex tate some terms. Anyway,
other ministry,” this person said. could be challenging given the scale Multiplexes are also asking for chain PVR Inox Ltd said it malls without multiplexes see
m

“The ministry of consumer affairs also The first order of business for the task with the Advertising Standards Council and scope of ads, particularly on digital costs of lobby finishing or closed 85 underperforming no footfalls,” the person said,
issues advisories, but there are no regu- force will be for the three ministries to of India (ASCI), the industry watchdog. media. seats, in some cases,” Anuj Kej- screens in FY24 and 70 requesting anonymity. At the
co

lations on what is to be done with mis- decide what makes for misleading or Last month, the Supreme Court, “For local and hyper-local channels riwal, CEO and managing screens will shut down in moment, though, most malls
p.

leading content, so there is no final out- fraudulent advertising, as well as iden- hearing a complaint against false and and press, as well as smaller platforms, director, ANAROCK Retail, FY25, as the company looks at are refraining from operating
come on issues despite there being vio- tify companies peddling fake or mis- exaggerated medical claims by yoga the entire information mechanism will said. Kejriwal added that sev- renegotiation of cinema rent- all screens that they house and
ap

lations.” leading ads. The task force could also guru Ramdev’s Patanjali Ayurved, need to be incorporated as part of the eral properties are not getting als, a leaner organization adopting tactics such as start-
The task force is likely to be estab- frame laws to govern social media ads. slammed the company as well as other technology offering,” said Manisha signed unless developers feel structure and other overhead ing shows later in the day, to
ts

lished by June, said the two people, both “There is a layered nature of social consumer goods firms for peddling mis- Kapoor, chief executive and secretary the locations are great and the cost control. The firm that minimize expenses when
of them declining to be identified. media and digital mediums, so the idea leading ads. general, ASCI. overall rents have dipped by shall be ‘very selective’ in new there is no content to feed cin-
ha

Spokespersons for the ministries of is for all three ministries to have a com- The court made it compulsory for all varuni.k@livemint.com 15-30% over the past six screen additions, plans to open emas, the person added.
t.w
ha

ITC’s Sanjiv
//c

Puri takes
s:
tp

over as CII
ht

president
Gireesh Chandra Prasad
gireesh.p@livemint.com
NEW DELHI

S the Power to
anjiv Puri, chairman and
managing director of
consumer goods major
ITC Ltd, has taken over as pres-
ident of Confederation of
Indian Industry (CII) for the
2024-25 period, the industry
body said in a statement on
Sunday. Puri takes the reins at
Think Ahead. Think Growth.
CII from TVS Supply Chain
Solutions chairman R. Dinesh.

Explore powerful narratives and expert

Puri is also the chairman of ITC
Infotech India Ltd and its sub-
sidiaries in the UK and the
US. A diversified conglomerate,

analysis with Mint Specials

ITC's businesses include fast-
moving consumer goods,
hotels, packaging, and infor-
mation technology.
Rajiv Memani, chairman of
the India region of EY, a con-
sultancy, has taken over as pres-
ident-designate of the industry
body for the year
2024-25. Memani is also a
member of EY’s global manage-
ment body as the chair of its
global emerging markets com-
mittee. Memani advises large
Indian companies, private
equity funds and multinational
organizations on building confi-
dence, mergers and acquisi-
tions, technology, and smart
capital allocation strategies, the
statement added. Scan Now To
Managing director and CEO
of Tata Chemicals Ltd R Download The App
Mukundan has taken over as
vice president of the industry
body for 2024-25.
An alumnus of IIT Roorkee
and Harvard Business School,
Mukundan has held various roles
across the chemical, automotive
and hospitality sectors of the Tata
Group during his 33-year career
with the group. The industry
lobby group’s businesses outlook
surveys give an indication of the
trends in capacity utilization and
new investments in the economy.
08 MONDAY, 20 MAY 2024
CHENNAI GLOBAL LIVEMINT.COM

U.S. fears undersea cables are vulnerable

to espionage from Chinese repair ships
Google, Meta Platforms and others partially own many cables, but they rely on maintenance specialists, including some with foreign ownership
Dustin Volz , Drew FitzGerald, to undersea cables, according to the ple familiar with the matter. A companies repairing or even hav-
Peter Champelli & Emma Brown person. member of the Chinese Communist ing access to undersea cables that
The security of undersea cables Party serves on the SBSS manage- are owned by U.S. carriers.”
WASHINGTON “is rooted in the ability of trusted ment team, according to the com- Nathaniel Fick, the State Depart-
entities to build, maintain, and pany’s website. He didn’t reply to a ment’s top cybersecurity official

U.
S. officials are pri-
vately delivering an
unusual warning to
telecommunica-
tions companies:
Undersea cables that ferry internet
traffic across the Pacific Ocean
could be vulnerable to tampering
by Chinese repair ships.
State Department officials said a
state-controlled Chinese company
that helps repair international
cables, S.B. Submarine Systems,
appeared to be hiding its vessels’
locations from radio and satellite
repair” them “in a transparent and written message seeking comment. who was testifying at the hearing,
safe manner,” the National Security The U.S. in 2021 stripped China said he shared her concern. “I
Council said in a statement, noting Telecom’s licenses, arguing that it believe when our adversaries tell us
that satellite ship tracking “is one was subject to “exploitation, influ- what they intend to do, we should
such measure that supports vessel ence and control by the Chinese gov- believe them,” he said.
monitoring and safety.” ernment.” The move didn’t affect U.S. Fick said in a statement to the Jour-
The administration declined to companies’ ability to use the repair nal that undersea cable security can’t
comment on SBSS. Google and consortium that includes SBSS. be assured if the lines “are built, main-
Meta declined to comment about Safeguarding underwater cables tained, or repaired by suppliers who
the Biden administration’s con- has been a focus of U.S. national-se- are subordinate to or are beholden to
cerns related to SBSS. SBSS didn’t curity officials since the Cold War, authoritarian governments.”
respond to requests for comment. when fears of Soviet espionage SBSS is one of three maintenance
The gaps in the company’s ship- were paramount. In the 1970s, the shipowners that are members of
location data could be explained by U.S. secretly placed wiretaps on Yokohama Zone, a consortium
spotty satellite coverage rather underwater Soviet lines in an intel- used by internet cable owners in

T6
tracking services, which the than as an effort to hide their posi- ligence coup known as Operation the northwest Pacific. The group
officials and others said defied tions, according to another person Ivy Bells. keeps ships on standby, based in

W
easy explanation. who is familiar with the company. Beijing’s rapid military buildup China, South Korea and Japan.

3i
The warnings highlight an over- The cable owners often have repre- in the South China Sea in recent SBSS parent China Telecom hosted
looked security risk to undersea sentatives aboard repair ships at decades has heightened American a meeting of Yokohama Zone com-

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fiber-optic cables, according to sea, which would make any poten- government worries about the panies in Wuhan, China, in March,

dc
these officials: Silicon Valley giants, tial meddling with cable gear hard cables’ vulnerability to disruption according to people familiar with
such as Google and Meta Platforms, to hide, the person added. SBSS is part of a regional consortium that provides ships, including the CS Fu Hai, to fix undersea cables. or tampering. the event.

Q
partially own many cables and are The vessels—named the Fu Hai, U.S. officials say Industry analysts In response to ques-

investing in more. But they rely on
specialized construction and repair
companies, including some with
foreign ownership that U.S. officials
fear could endanger the security of
Fu Tai, and Bold Maverick—peri-
odically disappeared from satellite
ship-tracking services, sometimes
for days at a time, while operating
off Taiwan, Indonesia and other
worries stemmed from classified
intelligence about maritime espio-
nage or only potential threats to
internet infrastructure. But com-
mercially available satellite track-
Li
Chinese Embassy in Washington, The Fu Hai has seen other signifi- they are especially say that shifting tions about SBSS, Yok-
said he wasn’t aware of U.S. con- cant gaps in reporting its tracking concerned about the responsibility for ohama Zone Chair-
cerns about SBSS.
“It is nothing wrong for Chinese
5o
data at least a dozen times over the
past five years, according to the
security of cables that fixing cables away man Masanori Araki, a
carry sensitive data to submarine cable
w
from Chinese
companies to carry out normal MarineTraffic data. American bases and expert from Japanese
other military assets in vessels could be a telecom company and
H

commercial and military data. coastal locations in Asia, according ing data showed numerous gaps business in accordance with the A gap in transponder data alone
the Pacific and around tougher challenge shipowner KDDI, said
4n

The Biden administration’s focus to a Wall Street Journal analysis of while the company’s ships were at law,” he said. “We firmly oppose the isn’t necessarily a red flag, a senior
on the repair ships is part of a wide- shipping data. sea, they said. U.S. to generalize the concept of U.S. government official said. the globe. Though the Chinese company
uf

ranging effort to address China’s The data gaps were unusual for Underwater cables are vulnera- national security and attack and “But it would raise suspicions if it encrypted, that data is in compliance with
maritime activities in the western commercial cable ships and lacked ble to tampering when they are smear Chinese companies.” happens repeatedly, especially if can pass through commercial inter- the consortium’s performance
lx

Pacific. Beijing has taken steps in clear explanation, the officials and brought to the surface for repairs, The SBSS vessels’ location-track- they are operating in the vicinity of net lines. To prevent interruptions standards.
/D

recent decades to counter U.S. mili- industry experts said. U.S. officials say. Tapping global ing beacons have been inoperative a cable that might have strategic from damaged lines, the U.S. gov- “Cable owners are receiving and
tary power in the region, often by Hundreds of thousands of miles data flows is still far easier on land, periodically over the past five years, significance,” such as those ferrying ernment is funding several Pacific enjoying assured service quality,
m

seeking ways to stymie the Penta- of underwater industry experts according to radio and satellite data military communications, the cable projects along with American whichever service provider they
gon’s communications and other fiber-optic say. But at-sea from commercial data provider official said. internet companies, such as Goo- may use,” he said.
co

technological advantages in case of cables carry repair could still MarineTraffic that was reviewed by The U.S. intelligence community gle. Google this year said it was Industry analysts say that shift-
a clash over Taiwan or another almost all the offer an oppor- the Journal. In early February 2021, has warned for years about the investing $1 billion in new cables ing responsibility for fixing Asian
p.

flashpoint, officials say. world’s international internet tunity to install a device to remotely the Fu Hai left its berth near Shang- security of undersea cables, noting and other infrastructure projects in cables away from Chinese vessels
ap

U.S. officials have told compa- traffic. Dozens of lines lace the disable a cable or to study the tech- hai and sped north up the coast into in a 2017 report that industry con- the region. could pose a tougher challenge.
nies, including Google and Meta, Pacific Ocean floor, shuttling data nology in advanced signal repeaters the Yellow Sea. Then the 340-foot, sortia that maintain cables might SubCom, a cable ship company Cable owners have few choices
ts

about their concerns that Chinese between the Americas, Asia and installed by other companies. red-hulled vessel stopped broad- “present vulnerabilities” and could owned by private-equity giant Cer- among an aging fleet of roughly 50
companies could threaten the secu- many island chains. U.S. officials said that cable repair casting its location signal for two be “susceptible to threats from berus Capital Management, ships around the world, according
ha

rity of U.S.-owned cables, a person SBSS is part of a regional consor- ships pose a security threat because days before it popped up back near insiders.” Cable integrity has long receives $10 million in annual U.S. to Mike Constable, who runs tele-
familiar with the briefings said. In tium of companies that provides they could engage in clandestine Shanghai. The signal went on and been a U.S. concern in the event of government payments for partici- com consulting firm Infra-Analyt-
t.w

some cases, the conversations have ships to fix undersea cables, includ- tapping of undersea data streams, off for a few more days back near a direct conflict with China, former pating in the Cable Security Fleet, a ics and previously led China’s Hua-
included discussion of Shanghai- ing some belonging to major U.S. mapping of the ocean floor to con- Shanghai before the ship docked intelligence officials said. program partly overseen by the wei Marine Networks, now known
ha

based S.B. Submarine Systems, the companies, by winching them to duct reconnaissance on U.S. mili- again, tracking data show. SBSS was formed in 1995 as a Pentagon. It requires the ships to be as HMN Technologies.
person said. the surface, resplicing broken tary communication links, or theft It wasn’t clear whether the ves- Chinese-British joint venture. available for critical cable repair or “You’ve got a Chinese asset
//c

Senior Biden administration offi- fibers that carry internet data and of valuable intellectual property sel’s automatic identification sys- State-owned China Telecom has other emergencies. repairing U.S.-invested cables,”
cials have also received briefings in returning the lines to the sea floor. used in cable equipment. The ships tems—satellite and radio transpon- long held 51% of the business and is At a congressional hearing in Constable said. “No one had really
s:

recent months about the risks U.S. and congressional officials could also lay cables for the Chinese ders that ships use to broadcast in the process of buying the January, Rep. Ann Wagner, a Mis- thought about that before.”
tp

posed by Chinese companies, who disclosed their concerns about military, they said. their location—were turned off or remainder from U.K.-based Global souri Republican, said she was ©2024 DOW JONES & CO. INC.
including SBSS, working on repairs SBSS wouldn’t say whether their Liu Pengyu, a spokesman for the suffered an unintentional outage. Marine Systems, according to peo- “very concerned about Chinese feedback@livemint.com
ht

It is dangerously easy to hack the Slowing inflation primes G-7 central banks
world’s phones Bloomberg
feedback@livemint.com
rates: while Europe and
Canada are leaning toward
cuts, the US remains on a high-

I
American officials noticed nflation-related releases er-for-longer path for now.
“SS7 anomalous traffic” that across the Group of Seven Elsewhere, the Federal
summer which they believed (G-7) will prime central Reserve will release minutes of
was related to the breach. bankers for crucial June inter- its last meeting, and central
Mr Briggs’s comments to est-rate decisions, just as they bank decisions to keep bor-

F
or years security experts
have warned that a tech-
nology at the heart of
global communications is dan-
gerously insecure. Now there
is proof that it has been used to
snoop on people in America.
Kevin Briggs, an official at
America’s Cybersecurity and
Infrastructure Security
Agency, told the Federal Com-
munications Commission
(FCC), a regulator, earlier this
year that there had been
“numerous incidents of suc-
cessful, unauthorised
attempts” not only to steal
location data and monitor
voice and text messages in
America, but also to deliver
spyware (software that can
take over a phone) and influ-
ence American voters from
abroad via text messages. The
comments were first reported
recently by 404 Media, a web-
site that covers technology.
The hacks were related to an
obscure protocol known as Sig-
nalling System 7 (SS7). Devel-
oped in the 1970s to allow tele-
com firms to exchange data to
set up and manage calls, nowa-
days SS7 has more users than
the internet. Security was not a
big issue when SS7 was first
introduced because only a few
fixed-line operators could get
access to the system. That
changed in the mobile age. SS7
and a newer protocol, Diame-
ter, became crucial for a wide
range of tasks, including roam-
ing. According to the US
Department of Homeland
End-to-end encrypted apps can be circumvented by spyware that
takes over a device, recording keystrokes and the screen. ISTOCKPHOTO
Security, SS7 is a particular risk
because there are “tens of
thousands of entry points
worldwide, many of which are
controlled by states that sup-
port terrorism or espionage”.
Security experts have known
for more than 15 years that the
protocol was vulnerable in sev-
eral ways. In 2008 Tobias
Engel, a security researcher,
showed that SS7 could be used
to identify a user’s location. In
2014 German researchers went
further, demonstrating that it
could also be exploited to listen
to calls or record and store voice
and text data. Attackers could
forward data to themselves or, if
they were close to the phone,
hoover it up and tell the system
to give them the decryption key.
Spy agencies had known about
the issue for a lot longer. Many
were taking advantage of it.
In April 2014 Russian hack-
ers exploited SS7 to locate and
spy on Ukrainian political fig-
ures. In 2017 a German tele-
coms firm acknowledged that
attackers had stolen money
from customers by intercept-
ing SMS authentication codes
sent from banks. In 2018 an
Israeli private intelligence
company used a mobile opera-
tor in the Channel Islands, a
British territory, to get access
to SS7 and thus users around
the world. That route is
thought to have been used to
track an Emirati princess who
was abducted by the United
Arab Emirates in 2018. And in
2022 Cathal McDaid of ENEA,
a Swedish telecoms and cyber-
security company, assessed
that Russian hackers had long
been tracking and eavesdrop-
ping on Russian dissidents
abroad by the same means.
Beginning in 2014 Chinese
hackers stole huge amounts of
data from the Office of Person-
nel Management, the govern-
ment agency that manages
America’s federal civil service.
The most sensitive data were
security-clearance records,
which contain highly personal
details about government
employees. But phone num-
bers were also stolen. Accord-
ing to semi-redacted slides
published by the US Depart-
ment of Homeland Security,
the FCC bring the scope of the
SS7 problem into sharper
focus. “Overall”, he said, the
incidents he reported were
“just the tip of the proverbial
iceberg of SS7- and Diameter-
based location and monitoring
exploits that have been used
successfully.” That is a
reminder that, even as unen-
crypted phone calls and SMS
text messages have become
rarer, the backbone of mobile
networks remains woefully
insecure. Mobile-network
operators can block some of
these attacks, but most have
failed to take the proper pre-
cautions, say insiders.
Phone users can protect
themselves against SS7-based
eavesdropping (but not location
tracking) by using end-to-end
encrypted apps such as What-
sApp, Signal or iMessage. But
these, too, can be circumvented
by spyware that takes over a
device, recording keystrokes
and the screen. In April Apple
warned users in 92 countries
that they had been targeted by a
“mercenary spyware attack”.
On May 1st Amnesty Interna-
tional published a report show-
ing how “a murky ecosystem of
surveillance suppliers, brokers
and resellers” from Israel,
Greece, Singapore and Malaysia
had put powerful spyware into
the hands of multiple state
agencies in Indonesia. That,
too, is the tip of the iceberg.
©2024 THE ECONOMIST NEWS-
PAPER LIMITED. ALL RIGHTS
RESERVED.
meet in Italy to discuss the
state of the world economy.
Days after US data revealed
cooler-than-expected con-
sumer-price growth, the
UK, Canada and Japan will all
publish numbers for April that
are likely to go in the same
direction. A euro-zone wage
report, meanwhile, will also
offer key evidence sought
by policymakers.
Canada will be first,
on Tuesday. While traders
have pared back bets for a
cut at its June meeting to less
than 50% after recent hotter-
than-expected jobs data,
a fourth straight monthly
easing of underlying price
pressures in the inflation
release would keep the door
open for a reduction.
The next day, UK consum-
er-price growth is likely to
have slowed drastically—by
more than a percentage
point—to near the 2% level tar-
geted by Bank of England offi-
cials. With another monthly
reading due on the eve of the
20 June BOE meeting, sus-
tained evidence of dissipating
inflation could give policy-
makers all the encouragement
they need to reduce borrowing
costs there too.
On Thursday, the European
Central Bank will publish
wage numbers, data it deems
essential to judge underlying
price dynamics. Growth in
negotiated wages probably
failed to slow significantly
from the end of last year,
rowing costs on hold are likely
from New Zealand to Turkey.
The Fed will publish an
account of policymakers’ 30
April- 1 May gathering. In the
press conference that followed
that meeting, chair Jerome
Powell indicated rates will
probably remain higher for
While Europe and Canada are leaning toward interest rate cuts, longer because of lingering
the US remains on a higher-for-longer path for now. AP price pressures.
Several Fed officials have
heightening the case for cau- inflation that strips out energy since echoed that sentiment,
tion as officials gear up for a prices as well as fresh food is noting the need for more
widely flagged rate cut on 6 seen cooling to 2.5% after slip- evidence that inflation is sus-
June and perhaps more easing ping below 3% in March for the tainably headed toward the
after that. first time since November Fed’s 2% goal.
“Data for early 2024 from 2022. Bank of Japan officials Vice chair Philip Jefferson is
Germany, France, Italy and are likely to draw different among the central bankers
Spain have already been pub- conclusions from their peers, due to speak or deliver
lished and they point to nego- though, as those readings remarks in the coming week.
tiated wages rising 4.3% year would still extend the streak of Fed governor Christopher
over year in the euro area dur- outcomes at or above the 2% Waller is scheduled to speak
ing the first three target to 25 on Tuesday on the economic
months of the Several countries straight months. outlook and policy.
year. That’s only a are set to release As such, they The US economic data cal-
slight slowdown inflation data would back the endar is relatively light, with
from the 4.5% this week as G-7 case for a rate reports on April sales of previ-
registered in
finance ministers, hike as early as 14 ously owned homes on
4Q23. A nearly June and no later Wednesday and new houses
steady pace of central bankers than October, the following day. Purchases
increase would be meet in Italy with the embat- of existing homes are seen lit-
unlikely to derail tled yen serving tle changed from the prior
the ECB’s first cut as a risk factor for month, while contract sign-
in June but will keep policy- an early move. ings on new houses are projec-
makers nervous about com- Those data will arrive ted to have eased with mort-
mitting to additional easing,” against the backdrop of a gath- gage rates back above 7%.
said David Powell, senior euro- ering of G-7 finance ministers On Friday, data on April
area economist. and central bankers in the durable goods orders and
Finally, Japan’s data on Fri- northern Italian lakeside shipments will include insight
day may show consumer-price resort of Stresa. The global into companies’ appetite for
growth, excluding fresh food, economy features on the capital investments. The Uni-
weakening to 2.2% from a year agenda, offering officials the versity of Michigan will also
earlier, down from 2.6% in chance to reflect on a diver- issue its final May reading on
March. A deeper measure of ging transatlantic outlook for consumer sentiment.
LIVEMINT.COM NEWS WRAP MONDAY, 20 MAY 2024
CHENNAI 09

NEWS
695
THE NUMBER of candidates
₹28,242 cr £37.19 bn
THE NET amount sold by foreign THE NET worth of Gopichand Hinduja,
$7.9 bn
THE AMOUNT India saved in the first
57.17%
THE PERCENTAGE of Nestle India’s
IN contesting in the fifth phase of Lok portfolio investors in the Indian equities chairperson of the Hinduja Group, as he 11 months of 2023-24 due to cheaper shareholders who rejected the decision to
NUMBERS Sabha elections in 49 constituencies
across eight states
market in May as of 17th, amid delays in
rate cuts and inflationary concerns
topped the UK Sunday Times Rich List
for the sixth consecutive year
crude oil imports from Russia.
Now, the discounts are dwindling
raise the royalty payout from 4.5% to
5.25% of net sales over the next five years

HOWINDIALIVES.COM

RIL seeks access LUCKY ESCAPE ‘GDP growth likely

to ATF pipelines to be 6.7% in Q4’

R I
eliance Industries Ltd (RIL) has sought ndia Ratings and Research expects the
access to pipelines and storages that country’s GDP growth rate for the March
public sector oil companies have built quarter at 6.7% and around 6.9-7 % for the
over the years for supplying jet fuel from 2023-24 fiscal, its principal economist Sunil
depots and oil refineries to airports, as it Kumar Sinha said.
looks for a larger pie of fuel trade at some of The GDP numbers for the fourth quarter
Asia’s busiest airports. (January-March 2024) and the provisional
Reliance, which produces a fourth of estimates for the FY24 fiscal are scheduled to
India’s aviation turbine fuel (ATF), wants be released by the government on 31 May.
access to storage depots outside the Delhi The Indian economy grew 8.2% in the June
airport as well as to pipelines leading to quarter, 8.1% in the September quarter and
Mumbai, Bengaluru, and Hyderabad 8.4% in the December quarter of 2023-24.
airports. It currently supplies small volumes “We are expecting the fourth quarter
of ATF when compared with supplies made growth to be 6.7% and the overall GDP
by state-owned firms. growth for FY24 to be around 6.9-7% ,” Sinha
The firm made the suggestion in its told PTI in an interview.
comments to oil regulator PNGRB’s draft He said the growth rate in the first two
regulation calling for supply of ATF in all quarters benefited from a low base, though
existing and future airports through pipelines the 8.4% growth rate in the third (October-

T6
that can be accessed by any supplier so as to December 2023) quarter was surprising. PTI
bring in competition and cut fuel cost.

W
PTI

3i
K
dc
An Air India Express flight from Bengaluru to Kochi made an emergency landing at Bengaluru airport late on Saturday night after a fire was noticed in
one of its engines. All 179 passengers and six crew members were safely evacuated from the aircraft. This was the second incident involving an Air

Q
India Express flight on the day after a Thiruvananthapuram-Bengaluru flight made an emergency landing in Tiruchirappalli following a technical

Li
glitch. A day earlier, a Bengaluru-bound Air India aircraft was forced to return to New Delhi after a fire warning from its auxiliary power unit. PTI

5o
w

Spurious life-saving medicines

H
4n

The demand for zinc in India depends largely on

uf

The exercise assumes significance as India is the growth of the steel market.. AP
engaging with several trade partners. MINT

found in Delhi and Jharkhand

lx

Govt mulls SOPs India’s zinc demand

/D

to double in 5-10 yrs

m

to negotiate FTAs
co

T
he demand for zinc is expected to double

T
he commerce ministry has held detailed in India in the next five to 10 years on the
p.

discussions with senior officials of CDSCO reported findings of spurious versions of 5 critical drugs being sold in the mkt back of huge investments in infrastructure
ap

different departments and trade experts sector, including steel, International Zinc
on formulating standard operating procedures Association said on Sunday. The demand for
ts

(SOP) for negotiating free trade agreements Priyanka Sharma girath Place, a wholesale market distributing can cause treatment failure and adverse reactions, zinc in India depends largely on the growth of
(FTAs), an official said. medicines across India. increase the risk of morbidity and mortality, and the steel market as zinc is mainly used to
ha

priyanka.sharma@livemint.com
To discuss the various aspects of these NEW DELHI CDSCO, in its alert for April, reported finding lead to drug resistance,” said a state drug control- galvanise steel to protect it from corrosion.
agreements, the commerce ministry has spurious versions of these five drugs in the mar- ler, requesting anonymity. “I see a doubling of the demand (for zinc) in
t.w

I
organized a two-day ‘Chintan Shivir’ on ndia’s apex drug regulator has warned con- ket: Anti-HIV medication Dolutegravir tablets IP “Poor-quality medicines also increase health- the next five to 10 years. The market for primary
FTA strategy and SOPs for trade negotiations sumers about spurious copies of five poten- 50 mg, Telmisartan 40mg, and Amlodipine 5mg care costs to patients and the health system, wast- and refined zinc in India is currently close to
ha

on 16-17 May. Suggestions that came up during tially lifesaving medicines being sold in the tablets IP used for ing resources that 800 to 1,000 tonnes (per annum) and has a great
the discussions included comprehensive market, as well as 50 other drugs that it said the management of could otherwise be opportunity to increase with all the
//c

consultations with public and private sector were not of standard quality. high blood pres- Following recent inspections, used to benefit pub- developments that we are witnessing in India.
players and sharing details of the proposed In its latest report for April, which Mint sure, Domperidone drug authorities found 12 outlets in lic health.” We see huge investments in additional steel
s:

free trade agreements with the line ministries, has seen, the regulator said authorities had and Naproxen Drugs Controller capacity and ...steel still needs to be protected by
New Delhi involved in the
tp

the official said. found fake drugs from different locations in Delhi Sodium tablets, General of India, galvanized coatings. We see a lot of plans and
“Consultations should be held at every stage and Jharkhand. used to manage distribution of spurious drugs Rajeev Raghuvan- investments going on for new galvanizing lines,”
ht

of FTA negotiations. Representatives of certain
ministries suggested the commerce ministry to
share FTA details with them in a timely manner
so that they can prepare their views on those
agreements,” the official added.
The exercise assumes significance as India is
engaging with several trade partners to
negotiate free trade pacts. PTI
The Central Drugs Standard Control Organiza- migraines and pain, shi, on 9 February International Zinc Association global director
tion (CDSCO) intensified inspections in the Rifaximin tablets, directed state drug Martin Van Leeuwen told PTI . PTI
domestic pharmaceutical market after India- used for treating diarrhoea and liver disease, licensing authorities to routinely analyse drug
made cough syrups were linked to the deaths of Cefixime Trihydrate with Lactic Acid Bacillus samples and keep a strong vigil on medicines
children in Uzbekistan and Gambia. tablets LP, used to treat bacterial infections. available in the market.
Following recent inspections, drug authorities
found 12 outlets in New Delhi involved in the dis-
The health ministry did not reply to Mint’s
emailed queries.
Following inspections, state drug authorities
verify samples with the manufacturer to confirm
India offers exciting
tribution of spurious drugs, including one at Bha- “Not of standard quality’ and spurious drugs the authenticity of the medicines.
prospects: Red Hat

R
ed Hat sees India as among the world’s
Govt recovers ₹852 cr under amnesty scheme for exporters Delhi on ‘red alert’ high-growing markets, and the
country’s expanding enterprise base
due to heatwave and technical innovation capabilities offer

T
he government has recovered about ₹852 crore under the amnesty exciting prospects for the IBM-owned
scheme for exporters for one-time settlement of default in export company, its chief executive officer (CEO)

obligation by the holders of advance and EPCG authorizations, an
official said. The figures are likely to increase further as the exercise is on
for the compilation of the data, the official added.
The government has fixed 31 March as the last date for payment of
customs duty plus interest.
“Under the scheme, 6,705 applications were filed and as per the
provisional figures, an amount of about ₹852 crore has been recovered. This
figure is further expected to increase,” the official said. Meanwhile, several
small exporters have requested the government to continue the scheme for a
one-time settlement of default in export obligation till September.
Ludhiana-based Hand Tools Association president S.C. Ralhan has
said several small exporters have not been able to avail of the benefits of
the scheme due to fulfilling their obligations to make payments to
MSMEs within 45 days.
T
he national capital recorded 44.4°C on
Sunday, with the weather office issuing a
‘red alert’ due to severe heat wave
conditions in the city. Delhi has seen a steady
rise in temperature in recent days, culminating
in the highest temperature recorded this
summer on Sunday. Saturday’s temperature
was 43.6°C, up from 42.5°C on Friday.
The India Meteorological Department
(IMD) predicted mainly clear skies with
heatwave conditions in many parts of Delhi
and severe heat wave conditions in other
The government has fixed 31 March as the last date for payment of areas, accompanied by strong surface winds
PTI customs duty plus interest. BLOOMBERG at speeds of 25-35 kmph on Monday. PTI
Matt Hicks has said.
Weighing in on the larger debate of AI and
its impact on tech sector jobs and salaries,
Hicks told PTI that artificial intelligence, “if
done well”, will trigger massive value creation
and spawn new industries beyond anyone’s
imagination.
Red Hat—the enterprise open-source
solutions company that IBM bought in 2019
for about $35 billion, marking its biggest
acquisition ever—is working with a “great”
foundation base in India and is at an exciting
point where the company is amplifying
capabilities with technology roles. PTI

Elon Musk launches A pioneering business leader with a clear sense of duty
Starlink in Indonesia
Ajay G. Piramal He would accurately recall his actions and the way he had a profound impact on the framework for the Piramal

E
lon Musk inaugurated SpaceX’s Starlink numbers discussed over a dec- lived. He always put the needs evolution of modern banking in Foundation.

N
internet services in Indonesia on Sunday as arayanan Vaghul was a ade ago in the context of mat- of the country first, working for India. He was always there for me in
the world’s largest archipelago seeks to good human being; a ters being presently discussed the disempowered. Then, it Beyond his professional difficult times, offering good
boost connectivity to its most remote areas. pragmatic man with an at a meeting. He was a great was the companies he built and achievements, Vaghul was counsel. He would only give
The inauguration took place at a community unwavering vision. His pass- storyteller and conveyed his all their employees, and only known for his kindness, gen- advice when asked for, and not
health centre in Bali. The billionaire, clad in a ing is a great loss not only to intent with simplicity and then his own needs. He lived a erosity, and dedication to unnecessarily. This was a spe-
green batik and mobbed by onlookers, said he me personally but also to the humour. We are ever grateful very simple life, always hum- uplifting others. He touched cial and endearing aspect of his
was excited to bring Starlink to Indonesian countless people whose lives for his lucid wisdom. ble, putting everyone’s needs the lives of many through his nature.
villages with no connectivity or very low he has impacted. Over his Vaghul had a deep knowl- before his own. For a man of mentorship and philan- Vaghul’s legacy will con-
bandwidth, adding “this can really be a lifesaver” long career as one of edge of the scrip- such great accomplishments, thropic efforts, embodying tinue to live on through the
for patients seeking medical treatment. India’s most erudite OBITUARY tures and would he would regularly tell me that the qualities of a true humani- lives he impacted and the
As well as connecting far-flung provinces, businesspersons, he often be heard say- he had done nothing great but tarian. transformative changes he
Indonesia expects Starlink to improve mentored and ing that where sci- only his duty. Vaghul was the chairman of brought to the banking indus-
education and health outcomes, coordinating advised me graciously. ence ends, spirituality begins, Vaghul was a Bhishma Pita- GiveIndia, a platform that try in India. He will be
minister of maritime affairs and investment Vaghul was on the Piramal and vice versa. He adhered to maha to many, with a clear enables individuals and insti- remembered not only as a pio-
Luhut Panjaitan said in a statement. Starlink board for 25 years. He pro- the wisdom of Sanatana sense of duty governed by his tutions to donate to chosen neering business leader but
received a licence to operate in the country vided us with clear and trans- Dharma and acted upon it by Narayanan Vaghul. PTI convictions of right and wrong. causes, and Pratham, a philan- also as an inspirational figure
earlier this month. parent thinking, making inter- putting this knowledge into A lion among men, Vaghul thropic organization that who exemplified the best of
Indonesian president Joko Widodo has long ventions where needed and everyday practice. His ideas to perfection. showed no fear when it came to focuses on children’s educa- humanity.
been courting Musk to cap off his decade-long gently guiding us to make thoughts, words, and actions Narayanan Vaghul was a doing the right things for the tion. He instilled in me a Ajay G. Piramal is chairman
bid to make Indonesia a destination of choice for brave decisions. I was always were completely aligned, generous man. I have always right reasons. His legacy of strong sense of philanthropic and executive director of the
foreign investors. BLOOMBERG amazed by his sharp memory. allowing him to execute all his observed how selfless he was in many firsts has undoubtedly duty and guided me with the Piramal Group.
10 MONDAY, 20 MAY 2024
CHENNAI LONG STORY LIVEMINT.COM

SAFE FOOD: WHY IT’S TIME FOR

FSSAI TO CRACK THE WHIP
In India, a snack brand selling a product unfit for consumption could get away by paying a penalty

Sayantan Bera & Suneera Tandon The European Union has a web-based mint
NEW DELHI rapid alert system for ‘Food and Feed’ to SHORT
warn consumers and policymakers in real STORY

I
f you are reading this piece with a cup of time. The portal shows multiple instances
tea or coffee, here is a number that can of Indian products which were found to be
score over caffeine—in its potency to non-compliant in recent months, from WHAT
wake you up. In the three years leading carom seeds to table grapes.
up to March 2023, Indian authorities To be fair, not all of it is Fssai’s responsi- Food adulteration is rampant
tested 43 million food samples. Turns out, bility. Food exports come under the pur- in India—in spices like turmeric
one in four did not conform to domestic view of multiple agencies—the Export and chilli, edible oils and cottage
food safety laws. Of these, one in every six Inspection Council, Agricultural and Pro- cheese. Broom sticks are cut into
were either ‘unsafe’ or ‘substandard.’ The cessed Food Products Export Development pieces and added to cumin,
rest did not conform to labelling laws— Authority, and Spices Board of India, all Fssai has found.
which means food makers were misleading under the commerce ministry. But that
consumers by putting incorrect informa- does not absolve Fssai, an independent stat-
tion on the label. utory agency under the health ministry, NOW
The Food Safety and Standards Act, entirely: Why do consumers in India have to
2006, defines unsafe food as those ‘whose rely on foreign agencies to know which food Fssai initiates civil and criminal

T6
nature, substance or quality is so affected as items are unsafe? proceedings against businesses
to render it injurious to health.’ The federal “Rejections are common in international that don’t stick to food safety

W
regulator, Food Safety and Standards trade. Singapore need not have gone to the laws. However, the regulator

3i
Authority of India (Fssai), and state food media about it. India has also rejected many rarely informs the consumer on
safety agencies, whose job is to ensure ‘safe imported items in the past but we did not the brands selling unsafe food.

K
and wholesome food for consumption’, for make that information public for the sake

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1.4 billion Indians, initiated civil and crimi- of bilateral relations,” said the senior Fssai
nal proceedings on most errant businesses. official quoted earlier. NEXT

Q
They achieved an impressive conviction The officer admitted that adulteration is

Li
rate in over 60% cases. rampant in India. “In spices like turmeric Testing has increased over
But what they did not do is to alert the and chilli, edible oils and paneer (cottage the years. But, experts say that
consumer. Citizens were left out in the cold cheese)…broom sticks are cut into pieces
and not informed which manufacturers or and added to cumin. We have increased
5o instead of being proactive, Fssai
is reactive. Enforcement of rules
w
brands were selling substandard, unsafe, surveillance to check these malpractices,” is poor due to shortage of food
H

and mis-labelled food items. There was no he said. safety officers and labs.
4n

way for consumers to stay away from food ‘Processed food and beverages’
items ‘injurious to health.’ (excluding minimally processed cere-
uf

Fssai’s 2021-22 annual report has no als, pulses, edible oils and dairy prod-
mention of any product recall, or cancella- ucts) was the single largest compo- FOOD SAFETY AT STAKE
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tion of food licenses—an established global nent in the monthly per capita In the three years to March 2023, about 16% of samples analysed were either unsafe
/D

practice to safeguard consumers. In India, spending of families, showed a or substandard

a snack brand selling a product unfit for recent government survey. About
m

Year Samples analysed Non-conforming samples

consumption could get away by paying a 10.6% of household budgets in
penalty, without any hit to its reputation. urban and 9.6% in rural areas was Labeling
co

Unsafe Substandard
defects*
The data on sample testing by food safety spent on this category in 2022-23
agencies was provided by Fssai following (up from 6.4% and 4.2%, respec- 2020-21 1,07,829 5,220 13,394 9,733
p.

queries sent by Mint. The agency did not tively, at the turn of the century). As
ap

respond to Mint’s query on if any products per a 2023 report by the World 2021-22 1,44,345 4,890 16,582 11,462
were recalled or if licenses were cancelled Health Organization, the retail value 2022-23 1,77,511 6,579 21,917 16,130
ts

in the past five years, for not complying of ultra-processed food and bevera-
with food laws. It also did not disclose any ges sold in India grew exponentially, TOTAL 4,29,685 16,689 51,893 37,325
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names of errant food makers. from $0.9 billion in 2006 to over $37.9 *Includes cases of misleading labels Source: Fssai
Back in 2015, Fssai had asked Nestle to billion in 2019.
t.w

FALLOUT OF UNHEALTHY DIETS

recall its popular instant noodles Maggi for The market is growing but consumers Nutritional status and health indicators of children aged 10-19 years (Prevalence in %)
containing excessive lead and monosodium are unsure if the food they are eating is safe,
ha

glutamate (a flavour enhancer), which seems let alone nutritious. Anaemia 28.4
to be the only known case of product recall. Instead of being proactive, the regulatory
//c

Nestle India filed a legal petition with the approach is reactive, said Ashim Sanyal, High triglycerides 16.1
Bombay High Court, seeking a judicial review chief executive officer (CEO) of Consumer
s:

of the recall order. The court overturned the Voice, a rights advocacy body. “Because
Pre-diabetes 10.4
tp

government’s ban on Maggi citing that move masalas are in the dock, Fssai is collecting High serum creatinine 6.6
was “arbitrary” and said that Nestlé India can samples from all over India. What stopped it
ht

bring the product back to the market follow- from doing so earlier?” Overweight 4.9
ing fresh tests. Subsequent test results Sanyal added that enforcement of food
showed that Maggi was safe for consumption. safety rules is poor due to limited resources Hypertension 4.9
In October 2015, four months after the recall (shortage of food safety officers and labs for Source: Comprehensive National Nutrition Survey 2019, cited in Dietary Guidelines for Indians, ICMR-NIN, May 2024
order, Nestle announced plans to resume the testing) at the state level.
SARVESH KUMAR SHARMA/MINT
sale of Maggi. There are 207 Fssai accredited labs for
A senior official from Fssai who did not food testing but many smaller states and
want to be named said testing has increased union territories do not have a single facility, oxide in spice mixes) and to prolong brain, and this puts the term fast food in a
over the years. But why is the agency not said Rishi Aggarwal, co-founder and CEO of shelf life. Aggressive marketing of ultra new light, wrote Michael Moss, Pulitzer
alerting consumers about manufacturers Teamlease Regtech, which helps businesses processed food—high in fat, sugar, and Prize winner and author of the book,
selling ‘unsafe’ food? on regulatory compli- salt (also known as HFSS foods)—adds Hooked: How Processed Food Became Addic-
“You mean name-and- ance. “How will food busi- to this mess. Because a packet of wafers tive. “Measured in milliseconds, and the
shame them? That is a According to the dietary nesses comply if there are or juice is inexpensive (and tastier) com- power to addict, nothing is faster than pro-
good suggestion,” the guidelines report, about 56% very few or no labs in pared to a bowl of fresh fruit or salad, cessed food in rousing the brain.”
official said, as an after- states they operate? consumers readily adopt HFSS items.
thought. of India’s total disease burden There is enough expertise Junk food is more affordable because SILENCE OF THE BRANDS
Fssai has come under
fire recently for being lax
on more than one count.
is due to unhealthy diets;
it is fuelling an epidemic of
in the private sector to
ensure compliance. The
problem is there is so
their primary ingredients, salt, sugar,
and palm oil, are among the cheapest
farm commodities.
C elebrity endorsement increases the
appeal of junk. Some popular pro-
cessed products, for instance, are adver-
Last month, a global much inspector raj in our According to the dietary guidelines tised by popular actors. A 200ml serving of
report by a Swiss watch- non-communicable diseases. system, the moment you report, about 56% of India’s total disease a mango drink can contain 31.2gm of sugar
dog reported that Nestle, a bring some of these com- burden is due to unhealthy diets which is (roughly seven teaspoons—try gulping that
multinational brand, adds excess sugar in pliances into the private sector (via third fuelling an epidemic of non-communica- much sugar in a go!). The latest dietary
infant milk and cereal products sold in low- party certification), you lose the right to ble diseases (NCD) like diabetes and guidelines advise adults to limit consump-
and middle-income countries, including demand a convenience fee (bribe),” he said. hypertension. Every tenth child is pre-di- tion of sugar to 25gm in a day. Drinking
India, but not in rich nations. Spice mixes sold Fssai did not respond to Mint’s queries abetic while one in four is anaemic. While 200ml of this drink, or any other sweet-
by MDH and Everest, both household names on inadequate infrastructure and man- a fifth of adult women are undernour- ened or carbonated beverage, exceeds an
in India, were red flagged and recalled by reg- power required for testing. On the recall of ished, a quarter are obese. The way to adult’s daily quota of sugar. For a child, its
ulators in Hong Kong and Singapore for con- spice mixes by other countries, it said prod- effectively counter the NCD epidemic worse. As per the guidelines, a diet with no
taining ethylene oxide, a cancer-causing ucts meant for global markets do not fall fuelled by the surge in consumption of added sugar is perfectly healthy.
chemical used as a fumigant. under its purview. It added that the agency, unhealthy food, experts concur, is by Mint reached out to Britannia Industries,
MDH said in a statement on 27 April that following media reports, has traced back upgrading existing regulation, by mandat- which sells biscuits and cakes, to understand
claims of presence of ethylene oxide in its exported spices to manufacturing facilities ing front-of-the-pack labels (FoPL) and its position on front-of-the-pack-labels and
products are “untrue and lack any substan- and it is inspecting, sampling, and testing restricting aggressive marketing. For over what steps it is taking to improve the nutri-
tiating evidence”. In its defence, Nestle said all types of spices. On infant products, Fssai a decade, India has been discussing FoPL tional quality of its products. It declined a
it follows the same standards in India as it said that Indian laws allow for adding sugar on packaged food to inform consumers response. Mondelez India, makers of Bourn-
does globally. It claimed to have reduced (sucrose and fructose) as source of carbohy- about high levels of salt, sugar, and fat. In vita, and Dabur, which sells juices and milk
‘added sugar’ by up to 30% in cereal prod- drate, by up to 20% of the total carbohy- 2022, Fssai released a draft regulation seek- shakes, did not respond to queries either.
ucts (like Cerelac) meant for infants and drate in the food item. It is currently testing ing public comments. Ignoring the sugges- India’s regulatory environment around
young children. While Fssai guidelines samples to check for any violation of this tion of health experts and consumer groups food safety and nutrition has its fair share of
allow 13.6gm of sugar per 100gm of feed, on rule. On safety aspects, the regulatory body to mandate warning labels on packaged defenders. According to K.S. Narayanan,
average, Cerelac contains 7.1gm of added said that food business operators, or FBOs, food (which are easy to interpret), the draft food and beverage expert and former man-
sugar, Nestle said during a media roundta- are required to provide test reports on proposed health star ratings (HSR) on pack- aging director of McCain Foods, most food
ble at the company’s headquarters in Guru- chemical and microbiological contami- aged food. It remains unclear if FSSAI will items manufactured in India are aligned
gram on 29 April. nation every six months. go ahead with HSR ratings as it is still with international standards. But at times,
Added sugar, however, does not add to the reviewing comments, a good 18 months the price consumers are willing to pay
nutritive value of manufactured food. The A MESSY STACK after the draft was released (in Novem- determines what goes into products.
updated Dietary Guidelines for Indians
(DGIs), released by the National Institute of T he recent series of events are
only but the tip of the iceberg.
Nutrition earlier this month, advised parents Food—be it fresh vegetables, mini-
ber 2022).
“Fssai should show some urgency by
setting a definition of ultra-processed and
Is the regulator industry friendly? “I do
not know if they are friendly or not. Maybe
they lack capability and resources in terms
to avoid packaged food with ‘added sugar,’ mally processed grains and pulses, or HFSS foods. It can add such food products to of people, training, and equipment,” Nara-
even for children older than six months. ultra-processed items like biscuits and its existing definition of ‘unsafe’ food, in line yanan said.
beverages—ultimately comes from the with the latest dietary guidelines,” suggests Saugata Gupta, CEO of Marico India,
FIRE FIGHTING farm. And farmers depend on input dealers’ Arun Gupta, fellow of Indian Academy of which sells food products under the Saffola

A report by the European Food Safety advice while using chemicals and pesti-
Authority, released on 23 April, stated cides. Unscientific overuse leaves behind
that turmeric, chilli, peppercorn, and dried residues above permissible limits in har-
Pediatrics, and convenor of Nutrition Advo-
cacy in Public Interest, a national think tank
on nutrition.
brand, thinks the regulator has been pro-
gressive and proactive. “We have to ensure
a fine balance…obviously, protecting health
beans from India were found to contain eth- vested crops. When these are processed, Is it odd to equate a bowl of chips to a shot is the most important thing but sometimes
ylene oxide. Cumin seed and rice samples more chemical additives are used to prevent of nicotine? One hallmark of addiction is we also have to be practical,” he said.
exceeded the limit for pesticide residues. bacterial contamination (like ethylene TARUN KUMAR SAHU/MINT the speed with which substances hit the sayantan.bera@livemint.com
LIVEMINT.COM
How this telecom executive is
strategizing his path to FIRE
After burning his fingers in direct stock investments after the 2008 financial crisis, Arunava Guin turned to MFs
Neil Borate & Jash Kriplani
A
runava Guin is a true-blue
Mumbaikar. At 40, he has
his sights set on FIRE—
financial independence,
retire early—and is near-
ing the halfway mark of his target of
₹15 crore, which he expects to achieve
within the next five years.
Guin began his career in software
sales, but now works in a strategy role
at a large telecom firm, which he tran-
sitioned to after earning an executive
MBA at the Indian Institute of Man-
agement, Ahmedabad. He discovered
the FIRE movement on social media in
2018, but his interest deepened during
the covid pandemic in 2020.
“The idea of being financially inde-
pendent and retiring early to do what
I truly love was very appealing,” says
Guin. According to him, FIRE isn’t
about quitting work but gaining the
freedom to pursue passions. “For me,
FIRE doesn’t mean just kicking back
and relaxing in a shack on a beach. I
might explore entrepreneurship or
teaching, which I’m passionate about.
I would like to think how I can give
back to society,” he says.
“As a child, I have witnessed finan-
cial uncertainty. Perhaps that’s also a
reason to seek FIRE,” Guin adds.
To accelerate his FIRE journey,
Guin restructured his investment
portfolio over the years. Here is a look
at it.
Minimizing mutual funds
Guin was first exposed to the stock
markets in the late 2000s, when he
began buying direct stocks. However,
the experience wasn’t a good one, and
he recalls holding some prominent
stocks that, after the 2008 crisis, either
became penny stocks or were delisted.
“I have burnt my fingers in the stock
markets. I had bought these stocks
based on tips from colleagues or
friends,” he says.
Later, a work colleague introduced
Guin to mutual funds, which became
the core of his portfolio. Over time, his
mutual fund portfolio grew very large
and needed to be streamlined, which
he began doing about three years ago.
At one point, the portfolio spanned
over 60 schemes, which he attributes
to the numerous new fund offers
launched in 2009 when he first started
investing, He has now brought this
down to a more manageable 20-25
schemes.
“Back then, many PSU (public sec-
tor unit) funds, thematic funds and
large-cap funds were being launched,
and as a newbie, I ended up buying
several,” he recalls.
Guin’s strategy is straightforward:
On strong market days, he sells some
of his investments, and on weaker
days, he reallocates them into his pre-
ferred funds. These are funds he
already own, thus consolidating his
portfolio.
Best home loan rates
A home loan is probably the biggest loan that one takes. Not only in terms of the loan
pays can be double of what was borrowed. But a home loan is among the cheapest loans
long term. It makes sense to buy a house if you plan to live in it. Given the fact that the
construction of several housing projects in India continues to be delayed or stalled by
many years, financial advisers say that one should buy a ready-to-move-in house. Here’s a
look at the lowest home loan interest rates of some leading banks.
Interest
Lender
rate (%)
City Union Bank 8.25-10.50
Bank of Maharashtra 8.35-10.90
Central Bank of India 8.35-9.50
Union Bank of India 8.35-10.75
South Indian Bank 8.35-11.44
Bank of India 8.40-10.85
Canara Bank 8.40-11.25
Indian Bank 8.40-10.35
Indian Overseas Bank 8.40-10.60
Punjab National Bank 8.40-10.10
Nainital Bank 8.40-11.00
IDBI Bank 8.45-12.25
UCO Bank 8.45-12.60
Punjab & Sind Bank 8.55-10.00
Karnataka Bank 8.60-10.62
Data taken from banks' websites as on 15 May 2024. EMI range is indicative and calculated on the basis of interest rate range; it may include other
charges and fees. Actual applicable interest rate may vary based on the credit profile of the loan applicant.
*50% waiver from 1 May 2024 to 31 May 2024 under Retail Loan Festival
**0.50% (Min. 3,000 and Max. 40,000) for other than individuals
PRANAY BHARDWAJ/MINT
MINT MONEY MONDAY, 20 MAY 2024
CHENNAI 11
POWER
POINT
V I K R A M D H AWA N
We welcome your views and comments at
mintmoney@livemint.com
WHY GOLD IS IDEAL
HEDGE AGAINST
Building wealth for FIRE freeedom
want to buy another house, as the
numbers didn’t add up for him. At the UNCERTAINTY
time, he was working from home. But
This husband-wife duo wants financial independence, retire early status in five years now that he’s back to working from the
T
office, he manages the long commute he Chinese gold rush is a stark reminder of investor behaviour
What's your FIRE goal? to Mumbai’s Bandra Kurla Complex when market and economic cycles turn. Gold consumption in
 15 crore in next five years by avoiding peak traffic hours. China has increased by over 6% this year despite higher prices.
Other goals The Chinese central bank has exchanged some of its dollars for gold
How far or close you are to that goal? Guin has also factored the educa- as it ran down its US Treasury holdings at a brisk pace—around $350
 Near the halfway mark tion costs of his son into his FIRE tar- billion in the past two-three years. The protracted bear phase in the
get but acknowledges the need for stock and real estate markets has dented investor sentiment, driving
Where are you investing to build this
corpus? flexibility. “Education is a very a cross-section of Chinese retail investors to gold. The Chinese central
 Equity mutual funds through SIPs
dynamic scenario,” he says. “My elder bank, too, has been a net buyer in each of the past 18 months.
sister, an engineer, graduated in 1999, The rest of the world can learn a lesson from this: It is essential
What's your current asset allocation mix? and her entire education cost ₹16,000. to have a diversified approach to investing. Waiting for the risk
I paid ₹14,000-15,000 annually for my assets’ music to stop and then scampering for safe havens like gold
*Largely equity engineering seat in Mumbai. Today, can be an expensive strategy, as Chinese investors are now realiz-
Debt**
25% mutual funds, with an engineering education costs lakhs ing as they are paying a high price for gold.
some direct equities
in India, and even higher abroad.” Regardless of the forecasts and views, gold alone checks most of
**Largely EPFO and “While ₹12-15 crore (his FIRE target) the boxes as a portfolio diversifier. Those who diversify into gold
T6
75% PPF, some mutual
funds should also cover his education are in good company, alongside central bankers worldwide. Cen-
Equities*
expenses, we have to be open to the tral banks’ US dollar holdings have decreased by around 12% in the
W
idea that it may change drastically. We past 20 years. While this rebalancing may appear to occur at a gla-
3i
What other avenues are you invested in? may end up spending much more or cial pace, it indicates an alarming trend for the dollar, especially if
 I also like to invest in NPS much less,” Guin says, noting that his it continues into the next decade.
K
son is just three years old now. “We Central banks: A dilemma
dc
Do you also invest in direct stocks? really don’t know how the future is A few missteps by the US Federal Reserve, such as underestimat-
 Yes. 10-15% of monthly savings. going to pan out.” ing inflation post-covid and its tendency to be data-oriented rather
Q
 Burnt fingers in stocks in 2008 crisis Spending habits than providing forward guidance, pose a challenge for central banks
Li
Guin and his wife spend 15-20% of holding a large volume of US Treasuries. This is evident in the
What are your spending habits? their joint income every month on record central bank purchases of gold in the past couple of years.
 15-20% on household expenses
 Rental cost is zero, as old home is leased out
5o
household expenses. He says his wife
is also on the FIRE journey with him,
There is also a strategic reason for the “Global South” to diversify
away from the US dollar. Trade disputes, geopolitical events and
w
 One international trip every year
and the targeted FIRE corpus is esti- re-globalization raise the spectre of US sanctions, quickly backed
H
mated to take care of both their by its allies from the “Global North”, as
Why did you move homes recently?
4n
 Moved to Thane for more open spaces for son.
expenses. Regardless of seen with Russia in recent years.
As mentioned, the family’s rental the forecasts, Gold carries no credit risk and stands
uf
costs are zero, since the rent from his as one of the most liquid assets, making
How much insurance cover do you have?
leased-out property accounts for the gold checks it an appealing diversifier or hedge for
 Personal + employer cover = 2.5 crore
lx
Son was born 3 years back, planning to top-up rent of his current house. He says their most boxes as central banks and individuals alike.
a portfolio
/D
household expenses are low, and they Gold tends to perform well at times of
How much health cover do you have? don’t curb their expenses as such. diversifier high volatility in risk assets like equities.
m
 Family floater cover base+top-up of “We both love travelling, so our It has been noted as the best-performing
50 lakh major expenses go towards that,” he commodity during global recessions.
co
Arunava Guin, 40, telecom executive, with his wife Atisha Nandi,
 Employer cover; base+top-up = 50 lakh says. They usually take one interna- In the near term, Chinese and other central bank purchases are
40, program manager (chief) in insurance company, and son
 Total health cover of 1 crore tional trip a year. “We hope to add one the key drivers of gold prices. Demand in India has remained resil-
p.
or two more trips within India,” he ient despite the higher prices. These two countries together
ap
PRANAY BHARDWAJ/MINT
adds. account for approximately half of the global physical demand.
And he has found valuable guidance his portfolio. one does,” he notes. Separately, Guin Insurance Global ETF (exchange-traded fund) holdings in gold are at a five-
ts
online. “I used Value Research and Over the years, Guin has consist- has been contributing ₹50,000 annu- Guin maintains his own term insur- year low, and, despite rising prices, outflows continue and are
noticed significant overlaps in my ently built his mutual fund portfolio ally to the NPS, fetching him an addi- ance, aside from the coverage pro- unlikely to reverse until there is a considerable correction in risk
ha
funds, like HDFC and Reliance Indus- through systematic investment plans tional tax benefit. vided through his employer, amount- assets like equities and credit, mirroring events in China.
tries stocks appearing multiple times. (SIPs), allowing him to invest a fixed ing to a total of ₹2.5 crore. “Since my
t.w
Relocating Other global factors
That was eye-opening,” he says. amount every month. And as his Until recently, Guin had lived his child was born, I have been consider- In addition to volatile situations in the Gulf and eastern Europe,
Despite his efforts, Guin’s portfolio income has grown, he has increased entire life in Mumbai (barring the time ing topping up my term insurance. I the world is bracing for two major events that will have global
ha
will remain at around his monthly SIP alloca- spent in Ahmedabad pursuing an may do so this year,” he says. repercussions as the world’s largest and richest democracies go to
15-20 schemes due to tax Guin’s portfolio tion. MBA). But in 2021, he decided to shift Reflecting on insurance strategy, he the polls. India is no longer a “rounding-off” item in the global
//c
implications. “Trimming consists of 75% Guin dismisses real out of India’s financial capital as he states, “Insurance should only cover financial markets, and the election outcome could impact the over-
or exiting funds triggers exposure to estate as a viable invest- wanted a larger home and open spaces the period you plan to be earning. I all sentiment towards emerging markets. Meanwhile, a second
s:
taxes, so reducing further equities, largely ment for his portfolio for his family, especially spaces where plan to work until around 45 or 50. term as US president for Donald Trump is not what the struggling
tp
isn’t tax efficient. Ideally, size. “Real estate makes his baby boy could explore and grow. Possibly, I may stop paying for the Chinese economy needs, as it could increase the probability of a
through mutual
experts say you need just sense for portfolios of Guin found a gated community in insurance cover beyond that.” depreciation in the yuan. A widespread tariff war could lead to cur-
ht
5-6 schemes, but for now funds, and 25% ₹50-100 crore, but not Thane, featuring wider roads, spa- Currently, Guin pays a higher pre- rency market volatility, which could be conducive to gold.
15-20 is where I’ll stay,” to debt for those under ₹10 cious walking areas and other ameni- mium of ₹8,000-10,000 for his term Gold ETFs
he says. crore,” he says. He also ties. cover. “I took it long back, so my pre- According to the United Nations, World Health Organization
Asset mix avoids gold and bank Interestingly, the shift to Thane is miums are a bit higher,” he says. and Organisation for Economic Co-operation and Development,
Guin’s portfolio consists of 75% fixed deposits. not costing Guin anything. When he Guin’s family has health insurance the world is becoming a better place to live in with each passing
exposure to equities, largely through Guin has been diligently investing moved there, he rented out his subur- cover of around ₹1 crore. Company- year. However, do ‘black swan’ economic and geopolitical events
mutual funds, and 25% to debt. The in PPF for several years. In recent ban Mumbai home. “The two rents are provided insurance covers both him no longer matter? Has humankind conquered the ups and downs
debt exposure includes some mutual years, he has been investing up to the essentially the same, so they cancel and his spouse. Additionally, he has of economic and market cycles? If you’re unsure, you might not
funds, but largely Employees’ Provi- ₹1.5 lakh annual limit. Additionally, his each other out. My rental cost is nil, insured his mother through his com- want to put all your eggs in one basket. Consider a multi-asset
dent Fund (EPF) and Public Provident current employer contributes 10% of and I’m much happier with the infra- pany, as he says that outside of corpo- approach to investing with allocation to gold ETFs, which are a
Fund (PPF). While he still invests his basic salary to the National Pension structure and quality of life here,” he rate plans, the health cover products safe, convenient, efficient and liquid solution for investing in gold.
10-15% of his monthly savings in direct Scheme (NPS). “My previous organiza- says. for senior citizens are not that good. Vikram Dhawan is head of commodities and fund manager at
stocks, mutual funds form the core of tions didn’t offer this, but my current Guin was very clear that he didn’t neil.b@livemint.com Nippon India Mutual Fund. The views expressed are personal.
As a non-resident, is there a tax Big funds
amount, but also tenure, which can be 15 years or more. The total final amount that one liability on exiting Indian MFs? now bet big
available, and usually it is the only way a person can buy a house. A home loan is called
a ‘good’ loan because it helps you acquire a tangible asset that can appreciate over the
on bonds
Parizad Sirwalla Bloomberg
feedback@livemint.com
B
I have been investing in ig US bond investors
Loan amount = ₹30 lakh. Tenure = 20 years mutual funds for the past have been aggressively
four years. Last year, I shifting money into
moved to Dubai and am long-dated notes, betting that
EMI (₹) Processing fee currently a non-resident the unloved asset class will be
Indian (NRI). Say, if I exit all one of the winners from even-
25,562-29,951 0.20% - 0.35% + GST my mutual fund invest- tual interest rate cuts.
ments now, would I have The largest 20 mutual fund
26,283-30,762 0.25% (Max. ₹25,000) zero tax liability? managers in the US have
26,283-27,964 Completely waived till 22 May 2024 except through DSA —Name withheld on request. increased duration over the
past two months as yields
26,283-30,457 0.50% of the loan amount (Max. ₹15,000) + GST I am assuming that you climbed, according to
26,283-31,869 0.50% (Min. ₹10,000) + GST qualify as a non-resident (‘NR’) ASK MINT tax return and relevant forms. research by JPMorgan Chase
in India, as per the relevant m N R I TA X AT I O N Also, a valid UAE tax residency & Co.
25,845-30,660 0.25% (Min. ₹1,500 & Max. ₹20,000) for Individuals**
income tax provisions, and certificate for the relevant Investors have been build-
25,845-31,478 0.50% (Min. ₹1,500 and Max. ₹10,000) + GST* also that you do not qualify as a period would be required to ing positions by “piling into”
25,845-29,650 Up to 0.25% of the loan amount
deemed resident of India examine and apply the provi- claim the DTAA benefit. Any high-grade corporate bonds
under the relevant income tax sions of Article 13 of the India- DTAA benefit claimed may be to avoid the negative carry of
25,845-30,153 Up to 0.50% (Max. ₹25,000) + GST provisions. Units of mutual UAE double taxation avoid- subject to detailed examina- government debt, said Niko-
25,845-29,150 0.35% (Min. ₹2,500 and Max. ₹15,000) fund qualify as capital assets, ance agreement (DTAA), if tion by the tax authorities, laos Panigirtzoglou, a global
and any gain or loss arising on more beneficial, which may based on facts of the case and market strategist at the len-
25,845-30,966 Not updated account of transfer of such exclude such capital gains interpretation of the specific der.
25,940-33,557 ₹5,000 to ₹15,000; Nil for Inward Balance Transfer and PMAY Cases mutual fund units qualifies as from sale of Indian mutual provisions. Long-dated corporate
a capital gain or loss for tax funds from Indian taxation, if Parizad Sirwalla is partner bonds are winning back
25,940-34,296 0.5% (Min. ₹1,500 and Max. ₹15,000) purposes. As the situs of these you qualify as a resident of the and head, global mobility servi- investors who fled as the mar-
26,130-28,951 Full waiver of processing charges capital assets is in India, any UAE as per the provisions of ces, tax, KPMG in India. ket dialled back bets on immi-
such capital gains will be con- the DTAA and on satisfaction nent easing by the US Federal
26,225-30,194 Up to 0.25% (Max. ₹25,000)
sidered as having accrued or of the other underlying condi- Do you have a personal Reserve. Now, the allure is
arisen in India and are hence tions. finance query? Send in your returning as markets price in
taxable in the country under However, please note that queries at two rate cuts this year after
mintmoney@livemint.com
the domestic tax laws, even if any DTAA exemption would data showed US inflation ebb-
and get them answered by
Source: MyMoneyMantra.com you qualify as an NR in India. be required to be appropri- ing for the first time in six
industry experts.
However, you may wish to ately reported by filing of India months.
12 MONDAY, 20 MAY 2024
CHENNAI VIEWS LIVEMINT.COM

OUR VIEW MY VIEW | THE INTERSECTION

MINT

The carbon emissions of war put

humanity’s right to exist at risk
Wars are not only imminent threats to human survival but they also exacerbate climate change

to argue that international politics is a col prohibits causing “widespread,

major hurdle to achieving emission
targets and other climate goals. They
do not sufficiently recognize that war
is perhaps the most undesirable source
of carbon emissions. The UN General
Assembly adopted a resolution on the
Protection of the Environment in Rela-
tion to Armed Conflicts (PERAC) in
NITIN PAI 2022, but the environmental impact of
is co-founder and director of The war remains at the margins of the inter-
Takshashila Institution, an independent national discourse on climate change.
centre for research and education in public That is an expensive mistake.
policy. Benjamin Neimark and his colleagues
long- term and severe damage to the
natural environment.” After the First
Gulf War, Saddam Hussein’s Iraq was
forced by the UN to pay environmental
damages after burning Kuwait’s oil
wells and polluting the Gulf.
In fact, the world prohibited wars of
aggression in 1945 and the entire edi-
fice of the United Nations was created
to prevent them from happening. We
have seen that the UN can limit wars
and the international system can hold
war criminals accountable. Let us be

Don’t add to the burden

found that the “projected emissions clear: If wars in Ukraine and Gaza are
from the first 60 days of the Israel-Gaza dragging on for months, it is because at

T
he regional head of a well-re- war were greater than the annual emis- least one permanent veto-holding
garded global philanthropic sions of 20 individual countries and member of the UN Security Council
foundation recently told me that territories.” The incremental increase wants it that way—or more. Fingers

of regulation on banks

T6
his board had decided to exclusively in emissions over the first two months must be pointed at them, both for the
focus on funding causes concerned was around 280,000 tonnes of carbon loss of lives of combatants and civilians

W
with combating climate change. Know- dioxide equivalent (tCO2e). If we were and for the environmental damage that

3i
ing that it had previously supported to bring this up to date, almost a million harms everyone on the planet.
work on nuclear disarmament and tCO2e has been wastefully dumped into In the face of the climate crisis, war is

K
international security, I asked why the atmosphere. The researchers esti- no longer only a moral crime against

dc
RBI’s review of the liquidity coverage ratio of banks should look for better options to reduce those problems were no longer of mate the reconstruction of Gaza will humanity. It is a material one against
interest to the foundation. His reply left create another 30 million tC02e of the survival of the species. It is time to

Q
the risk of a cash crisis. Limiting some online transactions to business hours might work me bemused. Climate change, he told emissions. These are very conservative treat it as such. Greenhouse emissions

Li
me, is a long-term existential threat to estimates and the real cost to the envi- from wars are a global negative exter-
humanity. ronment might be of a bigger order of nality and it is no longer tenable to let
Our conversation was taking place at 5o magnitude. Over in Ukraine, Lennard off the actors that cause it.

W
hile presenting the first
monetary policy statement
instead devise an alternate mechanism for a time when a nuclear threat had been de Klerk’s team calculate that an addi- Everyone on the planet is being
w
banks to manage their liquidity (withdrawals on issued at the onset of a major war, tional 150 million tCO2e of greenhouse asked to pay a price for the world to get
H

where drones and missiles were flying gases have been emitted in the first to net zero. It makes no sense to allow
for fiscal 2024-25 in April, a day-to-day basis) more efficiently? This task
4n

between nuclear-capable countries, 18 months of the Russian invasion, wilful and egregious polluters to do so
Reserve Bank of India has become much more complicated as online with major powers having withdrawn exceeding that of a country like free of cost. Making polluters pay into a
uf

Governor Shaktikanta Das transfers soar across the country, letting virtu- from arms-control treaties, and hyper- Belgium. global fund that can then be deployed
had announced that RBI ally all bank customers withdraw funds 24/7 at sonic and space weapons were fast At a time when people in developing to compensate the victims of climate
lx

would review its liquidity coverage ratio (LCR) the swipe of a thumb. Today, one of the main destabilizing the global balance. The countries are being asked to sacrifice change is not only fair, it also creates
/D

Bulletin of Atomic Scientists’ Dooms- their growth prospects to achieve the right incentives. In theory.
framework to ensure smooth functioning of causes of cash-flow uncertainty that banks face day Clock, a measure of how close we global climate goals, it is a cruel joke to The problem in practice is that the
m

the system even in the event of acute stress. His is on account of real-time fund transfers; any are from annihilation, jumped to 90 witness such thoughtless and wasteful international system has vested power
concern, he said, was driven by “recent events unexpected large outflow can potentially result seconds to midnight last year, up from emissions from extended wars. The and impunity in the hands of perma-
co

in other countries [that] have shown that digital in a liquidity crisis. It is true that the ‘traditional 120 seconds in 2019. War remains an world cannot prevent wars, but it can nent members of the UN Security
p.

channels have been used by customers to banking model’ of commercial banks in India, immediate existential threat. But, reduce their duration, limiting their Council, ironically making these five
unfortunately, it has got overshadowed intensity and environmental damage. the worst threats to human security.
quickly withdraw or transfer funds from by which they raise funds chiefly through cur-
ap

by climate change in terms of global Even before the UN adopted the Ergo, UN reform ought to be on the
banks.” Today, technology has enabled instan- rent and savings accounts and depend less on awareness and activism. PERAC resolution, the international agenda of everyone who cares about
ts

taneous transfers, with the result that banks are bulk deposits, is a cause for comfort. After all, it I have seen climate-change activists community has acted to penalize dam- climate change. Geopolitics and inter-
roll their eyes when the conversation age to the environment by aggressors national security are a blind spot that
ha

faced with a stiff challenge in managing their is highly unlikely that a majority of depositors
liquidity position to make sure they have suffi- will pull out their deposits at the same time—a turns to geopolitics. To the extent that (or, in realist terms, losing sides). An the climate-change movement can no
t.w

they engage with the subject at all, it is additional Geneva Convention proto- longer afford to ignore.
cient cash at all times. Under the Banking Regu- dangerous event called a bank run.
lation Act of 1949, banking is the business of Nonetheless, could we reduce the admittedly
ha

taking deposits “repayable on demand.” Hence, low probability of an acute-stress event by the
banks must always be able to honour any and all simple expedient of tweaking the existing rules
//c

demands from customers for repayment. that govern online transfers? Could we allow
s:

The governor stressed that it is during “acute banks to limit online transfers, particularly real
stress” that a framework like LCR—a prudential time gross settlement (RTGS) transfers? These
tp

New Delhi, Mumbai, Bangalore, Kolkata, Chennai, Ahmedabad, Hyderabad, Chandigarh*, Pune* Tuesday, May 20, 2014 Vol.8 No.119 `4.00 in Delhi-NCR/`5.00 outside Delhi-NCR 24 PAGES
www.livemint.com

tool to check a bank’s ability to meet cash out- tend to be of very high value and are usually CNBC-TV18:Ridham Desai on
risks to India’s economy >19
ht

TELECOM: Vodacom to buy Tata’s South

African unit Neotel >3

flows in the near future—is most needed. While
business-related transactions, so they could CONTENT PARTNER
NATION: Pakistan moves to break the ice,
extends invite to Modi >3
POLITICS: Congress leaders reject Sonia,
Rahul Gandhi offer to resign >4

this is clearly true, a better option is to fool- be scheduled from, say, 08:00 to 18:00 hours. SENSEX 24,363.05 Æ 241.31

ADMINISTRATION MODEL
NIFTY 7,263.55 Æ 60.55 DOLLAR `58.595 Æ `0.18

OPTING FOR NOTA

EURO `80.22 Æ `0.43 GOLD `28,790 æ `230

Firms rush to
OIL $109.57 æ $0.18

QUICK EDIT

Governance Nearly 60 lakh voters opted for None

raise money
from markets
The credit

proof the system in a way that minimizes the Such restrictions are not without parallel. Stock bubble

You never need an

Of The Above (NOTA), which was
introduced for the first time in a
general election in 2014. Nilgiris in high on Modi
as Modi will T
Tamil Nadu and Nabarangpur in here are growing
Odisha were the two Lok Sabha fears that the Chinese
constituencies that saw the B Y M ALVIKA J OSHI & credit bubble is about to
maximum NOTA votes. While Nilgris P .R . S ANJAI go pop. Many other Asian
saw 46,559 NOTA votes (5% of ························· economies have also seen

scope for such events, rather than wait for an market transactions, for instance, have to be
MUMBAI credit grow much faster
votes), Nabarangapur had 44,408

define it I
(4%). Bastar in Chhattisgarh came ndian firms and banks are than the underlying
third with 38,772 votes (5%). queuing up to raise funds economy. India has been

argument against the use

from the equity markets in an at- no exception—massive
tempt to cash in on the euphoria expansion in bank credit
over the victory of the Bharatiya after 2004 led to lax
ADNAN ABIDI/REUTERS Janata Party (BJP), perceived as lending standards that
Five characteristics that business-friendly, in the general eventually resulted in a
will define the Modi elections. growing pile of bad

implosion and then scramble to pick up the done during the stipulated opening and closing
Many companies are readying debts.
administration after the themselves for qualified institu- Yet, India is far less
overwhelming mandate tional placements (QIPs) —eq- leveraged than other
uity sales to banks, financial in- economies in the region.
won by the BJP stitutions, and just about any- Our problem is quite

of violence, you need an

one seen as a financially sophis- unique. Public debt is the
B Y A NIL P ADMANABHAN ticated investor by the stock biggest component of
anil.p@livemint.com market regulator. And this rush leverage. Corporate and
························· of QIPs could be a precursor to a household debt is

pieces. Presumably, RBI does not want to be hours. Remember, unlike retail payments that
NEW DELHI
Unique advantage: Narendra Modi. revival in the moribund initial relatively modest as a

L ess than a week from now,

Narendra Modi will take
oath as India’s 16th prime
minister.
Not surprisingly, there has
been a rash of speculation about
the likely shape and structure of
mentation.
Two, the administration is
likely to reward talented bureau-
crats with good assignments. In
Percentage of
public offering (IPO) market, say
investment bankers.
The money could help com-
panies retire debt and prepare
for the faster economic growth
proportion of gross
domestic product. The
big challenge in India is
thus not how to keep the
overall level of leverage
vote share
other words, it will be perform- Bastar that many economists antici- under control but how to
ance, more than seniority, that Nabarangpur 5% pate. It could also help banks rebalance between public

argument for it.

the next administration. As a vir- will define the index of upward 4% provide for the pile of bad debt and private debt.

caught napping, like some of its Western tend to be small and are often unplanned, busi-
tual outsider to Delhi’s charmed
power circles, Modi comes with
a distinct advantage: few people
know about him or his style of
functioning, which at once
makes him less predictable and,
consequently, less vulnerable.
Those familiar with Modi and
his working style say that it
mobility. on their books, meet capital ad- That is one task for the
Three, members of the cabi- 3% equacy norms, and prepare for a new government that will
net, unlike in the outgoing ad- 2% credit boom that usually accom- take charge of national
ministration, will be held ac- Nilgiris panies faster economic growth. finances soon. The first
countable—so they should be 1% On Monday, Jaiprakash Pow- step: credible measures
ready for performance audits (an 0% er Ventures Ltd announced to bring the fiscal deficit
Independent Evaluation Office to tolerable levels.
has just been created). TURN TO PAGE 2®
SAHIL BANGA/MINT
Modi’s rule in Gujarat has

counterparts, and hence is proactively looking ness payments are both large and typically
would be best to view the specu-
lation as just that. Not only does
the prime minister-designate
have a mind of his own, he also
prefers to keep his own counsel.
The overwhelming mandate—
Bharatiya Janata Party (BJP) won
282 Lok Sabha seats on its own—
means he has the numbers to
to ensure there is no liquidity crisis even during planned in advance. Hence, these could easily
back him. So it is almost a fore-
gone conclusion that entities
highlighted his hands-on ap-
proach to administration, and
tendency to hire technocrats as
advisors. In the centre, this could 15 bourses to CLOUDY FORECAST
include some of the profession-
als who volunteered for the Modi
campaign without necessarily
shut shop as Southwest monsoon sets in over
buying into the ideology of the
trades dry up
BJP’s parent, Rashtriya Swayam-
Andaman sea two days early
sevak Sangh (RSS).
Four, the power of discretion B Y A SHISH R UKHAIYAR &

such as a coordination commit-
tee or the National Advisory
Council (NAC) will be discour-
aged.
Having said so, here are five
characteristics that will define
the Modi administration:
of the political office will be se-
verely curtailed. Modi signalled
as much in his speeches on the
campaign trail. He will, push for
digitization of government
records and processes.
Even all paperwork related to
A NIRUDH L ASKAR
·························
MUMBAI
W ith the 30 May deadline
for stock exchanges to
meet new net worth and trading
norms looming large, 15 of the
N OA M C HOMSKY
B Y N IKITA M EHTA soon because a general corre- are the cross-equatorial flow
nikita.m@livemint.com lation has been seen between becoming stronger, and there
·························
NEW DELHI
late onset and subsequent ab-
normalities in advance of the
is also a cyclonic circulation
over Bay of Bengal. This cy-
T he southwest monsoon has
set in over most parts of
rainy season in the rest of the
country, which can affect agri-
clonic circulation will become
more organized and help in

periods of acute stress. This is welcome. After be scheduled during work hours without
One, it is a no-brainer that the
man will restore the primacy of
the Prime Minister’s Office
(PMO). In the previous adminis-
tration led by Congress, the PMO
was severely diminished in its
role and status. That will change
and the PMO will not only drive
policy, but also monitor imple-
projects and clearances will be
digitized—not only will this en-
sure transparency, it will also
dis-intermediate government
decision-making, precluding the
need for constant engagement
with the concerned cabinet min-
ister.
Five, he is unlikely to encour-
20 stock exchanges in the coun-
try have opted to exit the busi-
ness altogether.
According to two people di-
rectly familiar with the matter,
including an official of Securities
and Exchange Board of India
(Sebi), 11 regional stock ex-
changes (RSEs) have already
the Andaman Sea and some
parts of southeastern Bay of
Bengal on Sunday—two days
prior to its expected date.
Conditions are favourable
for the advance of the south-
west monsoon in the next 48
hours, according to India Me-
teorological Department.
cultural output,” said Abhijit
Sen, member of the Planning
Commission.
The normal onset date of
monsoon over Kerala is 1 June.
It marks the beginning of the
country’s rainy season.
“If monsoon arrives on 5
June, it should not make much
the advancement of the mon-
soon over Sri Lanka and finally
the Indian mainland,” the
forecaster said.
While the IMD has forecast a
late arrival of the southwest
monsoon over the Indian
mainland, Skymet has forecast
an early onset of the monsoon

all, there is always space to fine-tune prudential impairing business efficiency, while adding
age a coterie. It is one thing to
have a close confidant like Amit
Shah and entirely another to en-
courage coteries and palace in-
trigues. This will be a big break
from the past and will bring with
it attendant consequences—
such as push-back from the sys-
submitted their exit applications
to Sebi, while the boards of four
other exchanges will be meeting
later this month to consider the
resolutions related to closure of
business. Neither of the two peo-
ple wished to be identified.
The Bombay Stock Exchange
The early onset over the An-
daman and Nicobar Islands
may not hold much signifi-
cance for the arrival of the
monsoon over Kerala, forecast
for 5 June, four days later than
normal. The June-to-Septem-
ber monsoon season is crucial
difference to the sowing of
crops across the country,” Sen
said.
Past data, however, suggests
the absence of a direct link be-
tween the monsoon’s advance
over the Andaman Sea with its
onset over Kerala or that with
around 28 May.
After the southwest mon-
soon set in over most parts of
Andaman sea and southeast-
ern Bay of Bengal on Sunday, it
advanced further into remain-
ing parts of the Andaman Sea,
and parts of southwest and

regulations and get them up to speed. But in a hugely to the comfort of banks on the liquidity
tem.
Then, Modi has earned the
political mandate to recalibrate
the system to suit his objectives.
NOTE TO READERS
The Media Marketing Initiative on
Page 11 is the equivalent of a paid-
(BSE), United Stock Exchange
(which agreed to merge with
BSE), MCX Stock Exchange Ltd
(MCX-SX), National Stock Ex-
change (NSE) and the Calcutta
Stock Exchange will continue in
business, said the first person.
Of the remaining 15 stock ex-
changes, 11 have already ap-
for crops in India, where a ma-
jority of farmers depend on
rain to irrigate their land. A de-
lay in onset of the monsoon or
poor rainfall will hurt farm
production, accelerate infla-
tion and delay an economic re-
bound in Asia’s third-largest
economy.
the seasonal monsoon rainfall
in the rest of the country, ac-
cording to IMD.
“It has set over north Anda-
man Sea and southeast Bay of
Bengal. It has set in 48 hours
prior to its normal date, and it
is expected to advance further
towards west-central and east-
east-central Bay of Bengal on
Monday.
The southwest monsoon,
which accounts for 70% of In-
dia’s annual rainfall, is the
main source of irrigation for
235 million farmers, according
to Bloomberg.
After setting over the Anda-

scenario where the compliance burden on front. Apart, of course, from reducing potential
for advertisement, and no Mint plied to exit the business, said “The timing of the onset of central Bay of Bengal,” said a man Sea, the southwest mon-
journalists were involved in this person. The other four are monsoon is important as it is forecaster at Skymet, an inde- soon is expected to make land-
creating it. Readers would do well also working towards this, he indicative of later monsoon. If pendent tracker of the south- fall in Kerala on 5 June, mark-
Mint is also available for R8 with to treat it as an advertisement. the onset is late, then it is not a west monsoon.
Hindustan Times in Delhi-NCR only
TURN TO BACK PAGE ® good sign for the rest of mon- “The reasons for the onset TURN TO BACK PAGE ®

banks has grown almost exponentially, can we risks to the stability of our financial system.

MY VIEW | MODERN TIMES

Alice Munro reported from inside the heads of women

always compassion for women; but also
MANU JOSEPH something sterner, something more useful.
The narrator in her short story Friend of
my Youth tells us, “…mother had grown up in
a time and a place when sex was a dark
undertaking for women. She knew that you
appears to explain that it was very good for his think, nevertheless most of their readers are Greatness is not defined by sales figures.
spirits: “What he felt was mainly a gigantic women. The literary success of men is often It is not a democratic vote. The establish-
increase in well-being… He ran up steps two a reward given by women. ment picks the greats. And establishment
at a time. He appreciated as never before a In a previous column, I had written that writers are usually reluctant to praise their
pageant of torn clouds and winter sunsets women appreciate the works of men, they peers. Asked to name the greatest among
seen from his office window, the charm of are generous to exceptional men, but men, them, they pick someone who is not one of

T
he short story is glorified by the gate-
keepers of literature, as though the
genre is from an oppressed commu-
nity. It is now common to hear that the short
story is more difficult to write than the novel,
and that women are better at it than men.
But the person who they claim is the finest
writer of short stories, Alice Munro, was
could die from it. So, she honoured the antique lamps… Come summer, he learned in general, do not engage much with the them. Sometimes they pick a safe foreigner,
decency, the prudery, the frigidity, that the names of flowers.” works of exceptional or a person from the oppressed classes, but
might protect you. And I grew up in horror Munro has said that women. It is this gap in often they pick an old person. This is how
of that very protection, the dainty tyranny when she started writing, She was chiefly generosity that partly Meryl Streep is the world’s “greatest actress”
that seemed to me to extend to all areas of only women read stories finances the progress of and why many Indian writers would pick
life, to enforced tea parties and white gloves and men did something interested in the men. A similar imbalance R.K. Narayan as “the greatest” and the West
and all other sorts of tinkling inanities. I seemingly more important in interest favours the West came to rate Alice Munro as the world’s best
favoured bad words and a breakthrough, I outside their homes. This
lives of women and its artists. We engage short-story writer.

is a journalist, novelist, and the

more measured. She said she persisted with
short stories because she couldn’t pull off a
creator of the Netflix series,
‘Decoupled’
novel. “I don’t really understand a novel,”
she once told the New York Times, “I don’t
understand where the excitement is sup-
posed to come in a novel…”
She died on 13 May at the age of 92. When
she was awarded the Nobel prize for litera-
ture in 2013, she became the first person to
receive the honour exclusively for short sto-
ries, and one of the very few laureates, I feel,
who were easy to read and a delight.
Her common analysis of herself as a writer
was that she was a woman who was primarily
interested in the lives of women and what
women experienced. The result was not
teased myself with the thought of a man’s
recklessness and domination.”
She did write the male point of view some-
times. I don’t know what it is about the male
characters of even great female writers, but
these men make fine observations about
curtains and upholstery. For instance, this
moment in the short story, The Bear Came
Over the Mountain: “Grant caught sight of
two layers of front-window curtains, both
blue, one sheer and one silky, a matching
blue sofa and a daunting pale carpet…”
Munro was kind to men, even considerate
perhaps. When she reveals that Grant, who is
married to the central character of the story,
used to have affairs with his students, Munro
contributed to her initial
success around a time
but the result more with their works than
they do with ours. In this
Munro appeared to see her rise to great-
ness with a detached amusement. She began
when the most influential
writers in Canada were all
wasn’t always imbalance, Munro is a ben-
eficiary. Indians who have
writing in her spare time, in between raising
her children and running a home. Many
men. Even today, I am cer- compassion never read a single Indian writers secretly feel that they are the world’s
tain that most of Munro’s short story may have read best ever, even though they may not have
readers are women. Most for women Munro. She may not have had the chance to read every writer. I get the
readers of stories are read any book by an Indian. feeling Munro was not someone who har-
women. They are the pri- But her elevation to great- boured such views about herself. When she
mary readers of men, too. ness might have a more interesting reason. spoke of herself, it was with a degree of self-
Male writers, in general, do not believe She has been successful for about five dec- effacement that was very persuasive. From
that they write about men, or that they are ades, even acclaimed now and then, but the the way she spoke about the process of writ-
primarily interested in the lives of men. literary establishment began to call her a leg- ing and writing itself, I often got the feeling
They would claim that their interest is wider end less than 20 years ago, when she was in that she really did not consider literature the
and universal, about humans and not gen- her 70s. This happens to many artists, and not most important thing. I could never grasp,
der. They might be more wrong than they because they do their best work in old age. though, what mattered the most to her.
LIVEMINT.COM VIEWS MONDAY, 20 MAY 2024
CHENNAI 13

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

India must raise productivity for Yes, the world is hotter than it
has been in 2,000 years or so
sustainable and inclusive growth A scientific study of tree rings confirms global warming is for real

We have been making better use of capital but must improve its deployment so that returns rise and bulk jobs are generated

ISTOCKPHOTO

FAYE D. FLAM
is a Bloomberg Opinion columnist covering
science.

RAJAT DHAWAN
is the McKinsey & Company’s managing partner
in India.

I
t’s one thing to say the northern hemi-

P
roductivity is not everything,” econo- sphere summer of 2023 was the hottest
mist Paul Krugman famously com- in 150 years of mercury measurement.

T6
mented, “but in the long run, it’s almost This claim is often dismissed by sceptics of Trees that live for thousands of years hold
everything.” Higher productivity is global warming who point out that the useful temperature records

W
ISTOCKPHOTO
essential for India to create good jobs Earth has a long history of temperature

3i
and improve quality of life. It is through fluctuations. That’s why it’s important that zations in the American southwest. Tree
productivity too that the economy can generate a new paper shows last summer was actu- rings are helping scientists decipher the

K
the wealth that government can use to invest in ally the hottest in the last 2,000 years— role of climate in that period and others

dc
social welfare and environmental progress. Higher and that our current temperatures are even throughout history. The oldest trees, bris-
productivity is essential to fuel India’s journey more of an outlier than we realized. tlecone pines, can live nearly 5,000 years;

Q
towards sustainable and inclusive growth. [The question is] whether our recent scientists can extract a pencil-thin core to

Li
It is good news then that India’s productivity warming is a major shift or a blip. Thank- study the rings without harming the trees.
has risen an average of 5.6% a year since 1997, fully, tree rings hold records that go back But researchers don’t have to use such
according to recent research by the McKinsey
Global Institute (MGI), more than twice the global
5o thousands of years. In a paper published in
Nature, scientists used tree rings to plot
ancient trees to explore the distant past
because they can also read information
w
average of 2.3%. Only China was faster. To put it summer heat in the northern hemisphere from rings in wood that’s been incorpo-
H

another way, India’s gross domestic product (GDP) over the past two millennia. 2023 was the rated in old buildings and ships or pre-
4n

per worker rose from $6,200 in 1997 to $21,800 in hottest of them all. The next hottest 25 served in bogs. Trees growing in cold con-
2022. The challenge is to keep it up, or preferably, have all occurred since 1996. The next run- ditions can reveal temperature history
uf

do even better. This cannot be taken for granted. ner-up was way back in 246 CE. because it is the main factor limiting their
One big issue is investment, or capital forma- What we know of global warming has growth. The new study depended on such
lx

tion. MGI estimates that 70% of India’s productiv- been changed dramatically by long-term trees in nine different sites analyzed by 15
/D

ity improvement is explained by growth in capital trends revealed by tree rings, ice cores, teams, said its lead author Jan Esper of
per worker, a figure that almost quadrupled from sediment layers and other such monitors. Johannes Gutenberg University.
m

1997 to 2022. And yet, at about $38,000, India’s In 1998, scientists published a ‘hockey stick Esper said he was interested in better
capital stock per worker is still less than half that graph’ of the last 600 years. It showed that understanding what the Earth’s tempera-
co

of China and a third of the level of Central and global temperatures rose and fell like gen- ture was like in the pre-industrial area,
Eastern Europe. tly rolling hills until the mid-20th century, before human-generated emissions started
p.

Another way to look at this is how well Indian when they suddenly soared. warming the planet. The Intergovernmen-
ap

companies use their capital. Again, the conclusion That gave people a graphic image of how tal Panel on Climate Change defines pre-
is that they could do better. A McKinsey analysis of unusual things are today. Since then, there industrial temperature as the average
ts

India’s 1,000 biggest public companies found that have been dozens of detailed reconstruc- measured from 1850 to 1900. The Paris
only 56% earned a return on invested capital tions of our climate history. This latest one Agreement makes it a goal to keep global
ha

(ROIC) greater than the weighted average cost of India needs to improve how it deploys capital. This example, building a lithium-ion cell gigafactory covers only the part of the globe that has temperatures within 1.5° C of that pre-in-
capital (WACC) in 2023. That is more than in 2014, is urgent, considering that most of India’s infra- can cost anywhere from $55 million to $90 million the most trees—the mid-latitude northern dustrial period—a level we’re about to
t.w

when it was 43%, which is one reason why the structure and factories are still to be built, industry per gigawatt hour. That large range shows that hemisphere—but it goes back 2,000 years exceed. But measurements before 1900
capital intensity ratio has risen over this period. by industry, over the next couple of decades. there is efficiency to be captured through bench- and highlights climate change today in the were sparse, and Esper says the tree rings
ha

The trend is encouraging. Still, the fact that more At the same time, while India’s manufacturing marking and project execution. context of centuries of natural variability. suggest the actual pre-industrial era was a
than four out of 10 companies are not creating productivity growth is also high, at 5.7%, the sector Companies that rapidly digitize their supply Even seemingly small fluctuations can bit cooler. From 1850 to 1900, tempera-
//c

enduring value is sobering. is notable for its low returns, which explains why it chains and operations can earn significant bene- have a big impact on human life. Take 536 tures were already about a quarter of a
And it is troubling that ROIC has declined in attracts a relatively low share of capital. That also fits: Greater throughput and quality, less wastage CE, dubbed “the worst year to be alive” by degree warmer than the average over the
s:

recent years, from an average of 11.3% in the period helps explain why the sector accounts for only and better collaboration among workers, compa- historian Michael McCormick. An Ice- previous 2,000 years. That means our cur-
tp

2009-13 to 10.2% in 2019-23; that is slightly less about 12% of employment, just one percentage nies and supply-chain partners. Investing in landic volcano erupted, spewing particles rent temperatures might be more abnor-
than the WACC. Net profit margins also declined point more than in 1997. In other high-productivi- centres of excellence and digital capabilities could into the air and veiling much of Europe and mally warm than we realized.
ht

over the same period, from 8.4% to 7%. At best
then, on average, the top 1,000 Indian corporates
are just about breaking even on the shareholder
expectations of return and on WACC.
It’s important to note that some sectors (soft-
ware, pharmaceuticals and automotive) have done
much better than others (apparel and energy). It’s
also true that 1,000 companies form only a subset
of the Indian economy. But it is a critical subset,
accounting for more than 90% of India’s market
capitalization and about half of the corporate reve-
nue as a percentage of GDP. And the ROIC per-
formance for mid- and-small companies is worse.
What do all these numbers add up to say? With-
out improving ROIC, capital formation will falter.
And without improved capital formation, India
cannot achieve its productivity potential. In short,
ty-growth countries such as China, Poland and
Vietnam, the figure is around 20%. This is an
opportunity to be seized.
McKinsey estimates that manufacturing could
generate more than $1 trillion of GDP by 2030, or
double the figure of 2020, and provide a signifi-
cant share of the well-paid jobs needed for the
many people leaving farms. One approach to con-
sider is building manufacturing clusters near
ports, with free-trade warehousing zones, faster
approval processes and more flexible labour laws.
Improving manufacturing processes and capital
expenditure deployment could increase produc-
tivity three to five times. Smart project planning,
procurement and design could improve capital
productivity alone by 20-25%—a number that
would translate into jobs and competitiveness. For
reduce operational costs by 15-25%.
Another productivity opportunity for Indian
manufacturers is to make higher-value goods,
adopt better packaging and address markets with
stronger brands. Food processing, capital goods,
steel and steel products are areas of high potential.
Such efforts can be instituted without massive
investment; indeed, higher profits and ROIC mean
that these companies could reinvest their capital
surpluses rather than seek external investment.
India’s productivity record since 1997 is strong.
The challenge is to build on this momentum.
There is considerable room for improvement to
create sustainable and inclusive growth for the
many millions who have not yet benefited from
our remarkable progress.
Nikhil Malhotra contributed to the article.
Asia in a dark fog. That caused cold, fam-
ines and a wave of plague that coincided
with the collapse of the Eastern Roman
Empire. That year’s summer was just 1.9°
Celsius below the long-term average,
shows the Nature paper, and 3.9° Celsius
colder than the summer of 2023.
Volcanoes have been to blame for cooler
years. But the cause of past warm spells is
not as well understood.
The year 246 CE was also unusually
warm. More recently, the medieval-era
warm period between 800 CE and 1400
CE allowed orchards and pastures to
spread into north Europe, Iceland and
Greenland, and also triggered mega-
droughts, famine and the collapse of civili-
“You often hear politicians—ignorant
politicians—saying climate varies and it’s
been warmer in the past so don’t get too
excited about all this greenhouse gas we’re
putting into the atmosphere,” said Ray
Bradley, a climatologist of the University of
Massachusetts, Amherst, who was an
author of the hockey-stick paper. But the
natural records suggest it hasn’t been this
warm in 2,000 years, maybe longer, “so
that’s a pretty exceptional situation.”
Exceptional, but not hopeless. Today’s
climatologists say it’s not too late to keep
global warming within a manageable
range. If we listen to what nature is telling
us, we can keep 536 CE as the worst year to
be alive. BLOOMBERG

MY VIEW | GENERAL DISEQUILIBRIUM

Finance in India has a new bogey called private credit

going through the intermediation of banks
RAJRISHI SINGHAL or NBFCs. Private credit thus becomes an
alternative, non-conventional source of bor-
rowed capital for many privately held com-
panies. Another crucial difference with tra-
ditional loans, apart from their repayment
borrowers on the verge of defaulting on an
old loan. The central bank detected that
banks and NBFCs were investing in these
funds which were then routing money as
private credit to companies which had
already borrowed from the same banks or
This sleight of hand apart, private credit
comes beribboned with several potential
vulnerabilities. The April 2024 edition of
Global Financial Stability report from the
International Monetary Fund has devoted
an entire chapter to risks from private credit.
pensity for refinancing stressed assets is
another red flag, in which one risk event can
potentially send the entire credit market
into disarray.
Then there is the issue of uneven regula-
tion leading to uneven competition. Lend-

P
rudent regulation of the financial sec-
tor requires that rules apply equally to
all regulated entities. This, apart from
delivering regulatory equity, deters less-reg-
ulated entities from mistaking an uneven
regulatory regime as an incentive for exces-
sive risk-taking. A uniform regulatory
framework for all regulated entities not only
structure and security creation, lies in pri-
vate credit charging higher interest rates.
Private credit has been picking up in
India, stepping into the breach after credit
markets gummed up and lending activity
froze following the 2018 collapse of IL&FS
Ltd and other finance companies. A report
by audit firm EY estimates that private credit
NBFCs; the inflows were then used for meet- At a general level, private credit is remark- ing by banks and NBFCs is circumscribed by
ing older repayment obli- ably opaque in its opera- their capital base; funds extending private
gations. This worked as a tions and remains lightly credit have no such restrictions. In fact,
win-win for both the bor- Closer rules and regulated when compared unlike regulated entities, private credit pro-
rower and lender. The bor- with banks or NBFCs that viders do not have to make any minimum
rower could avoid loans openness can are subject to relatively provisions while extending credit. Worse,
getting tagged as non-per- stronger regulation and given the veil of secrecy that shields these
forming assets (NPAs) and
mitigate risks. supervision. Even bond funds, there is no clarity when asset impair-

is a senior journalist and author

of the recently released book
‘Slip, Stitch and Stumble: The
Untold Story of India’s Financial
Sector Reforms’ @rajrishisinghal
acts as a disincentive against excessive risk-
taking, but also safeguards financial stability.
The Reserve Bank of India (RBI) recently
harmonized its regulatory framework for
project finance to create a level-playing field
between both commercial banks and infra-
structure-focused non-banking financial
companies (NBFCs).
Private credit is another area crying out
for such synchronization.
Private credit is advanced by funds pooled
together from mostly institutional investors
and actively managed by professional man-
agers. These funds usually invest capital in
startups and early-stage companies in the
form of non-publicly traded debt, without
totalled $7.8 billion (about ₹65,000 crore,
108 deals) during calendar 2023, compared
with $5.3 billion (close to ₹43,500 crore, 77
deals) in 2022. Two deals stood out: a 3-year,
₹1,723-crore refinancing deal for the Shap-
oorji Pallonji Group and a ₹711-crore refi-
nancing loan for Vedanta Group. In fact, it is
believed that a large chunk of the private
credit in India during the past few years was
earmarked for refinancing stressed real
estate loans.
RBI was forced to step in last year when it
became clear that a significant portion of
private credit being lent by private equity
funds was used for ‘evergreening’ existing
loans, or providing a fresh loan to corporate
being referred for bank-
ruptcy proceedings. The
Recall, RBI had
lender, on the other hand,
avoided having to recog-
to intervene
nize loan impairment, earlier to curb
which would have entailed
reduced income and evergreening
higher provisioning, both
affecting profitability. The
credit fund, in turn, earned interest income
and was able to keep a lid on risks by offering
subordinate paper (which carries lower
repayment obligations) to investing banks
and NBFCs. RBI forbade banks and NBFCs
from investing in funds which were lending
money to these stressed borrowers.
markets have some disclo-
sure requirements that
impose an element of
restraint. In addition, pri-
vate credit is like a bilateral
over-the-counter deal
between borrower and len-
der, with no standardized
contracts or terms and con-
ditions. Given this level of opacity, any
default by a private credit borrower has the
risk of catching the financial sector una-
wares and acquiring the characteristics of a
contagion, especially since institutional
investors have extensive ties across the sys-
tem. Indian private credit’s revealed pro-
ment gets recognized, or whether the fund
has any provisioning standards or docu-
mented recovery processes. Most private
credit comes structured with lenient
restructuring clauses. There is also the ques-
tion of capability: despite past slippages,
most banks and NBFCs have developed deep
institutional capacity over the years for
credit appraisal, pricing, structuring, moni-
toring and recovery. Private credit, being
relatively new in India, has competence gaps
and this has shown up on numerous occa-
sions over the past few years.
Clearly, there is a need for regulatory
intervention here. Nobody wants a repeat of
the 2008 chaos.
14 MONDAY, 20 MAY 2024
CHENNAI BUSINESS OF LIFE WORKPLACE LIVEMINT.COM

Ditch the app blockers,

Rahul Jain

it’s discipline that helps ISTOCKPHOTO

As distraction-blocking
apps fail, people are
returning to good,
old methods to stay MONDAY MOTIVATION
productive and
communicate better How to build
Vangmayi Parakala
vangmayi.parakala@htlive.com
a happy, rock-
A
few months ago, Prabhuti Desai,
a performing artist based in Bar-
doli, Gujarat, was driven to her
wits’ end by Lock Me Out, an app
that promised to help her focus.
solid team
She was deep in the middle of drafting an idea Nuvama Wealth’s head on three work

T6
for a project, when she had to check something
on Instagram. She tapped the Instagram icon on pillars: trust, respect and passion

W
her phone, but a pop-up—from Lock Me Out—

3i
asked her to pay ₹180.
This was a monster of her own making. A few Vangmayi Parakala

K
months earlier, in a bid to cut out distractions vangmayi.parakala@htlive.com

dc
while she worked, Desai, 31, downloaded Lock

W
Me Out which would limit her access to certain hen Rahul Jain began his journey at Nuvama Wealth

Q
apps and sites for certain hours of the day. A cre- 16 years ago, it was still called Edelweiss. Then a zonal

Li
ative entrepreneur and facilitator, she was find- business head, Jain is now president and head of the
ing it hard to stay focussed without falling into wealth management company. “Love what you do, and stress
the vortex of Instagram Reels or Youtube Shorts
when between projects and ideating and
5o becomes a rarity,” says Jain.
After 16 years of professional experience, Jain considers men-
w
researching for new ones. torship crucial to his professional success. Trying to pay it for-
H

Initially, it seemed quite “cool” as the app ward now, he says mentorship isn’t just limited to providing gui-
4n

gave her various options: did she want to be dance—“it is about inspiring and empowering others”. He notes
alerted that her focus phase was starting; what that empathy is crucial in doing so. “When colleagues know you
uf

were the apps she want locked; did she want to genuinely care for them, they are more likely to push themselves
be able to bypass the lock for a few minutes; if harder and give their best.”
lx

yes, how many minutes; would she be okay with In an interview, Jain talks about why trusting and respecting
/D

paying to unlock it? In a fit of idealism and des- media use and over-use. an undergraduate student of computer science colleagues is important, and what he learnt from Mohandas Gan-
peration, she chose the toughest of safeguards. While she uses innocuous productivity apps, at Ashoka University, uses. “The most effective dhi’s autobiography. Edited excerpts:
POMODORO
m

“But it got so irritating after a point,” she says. like Scrivener for writing or Microsoft Excel to thing is to leave the phone in my room and go to
“There was no wiggle room.” keep track of her submissions, WhatsApp and the library,” she says. Who do you consider your mentor?
co

Whatever one’s field of work, the distracting Instagram are also important for her work—the
APPS TO TRY A few months ago, Jaiswal tried the app Mini- I have been blessed with several mentors throughout my
p.

triumvirate of social media, messaging, and former to stay connected with her writers’ malist Phone, which promises to eliminate dis- journey. My father and uncle shaped me into the person I am
entertainment apps, has become ubiquitous. group and the latter to share information about FLOW: The free version of this sim- tractions by blocking the apps and by turning a today; my current boss challenges
ap

For many, social media doubles up as a brand- workshops and new work. Govil says she has, ple timer app allows you to custom- smartphone’s interface into a black-and-white ‘When team me to think differently, pushing
building and networking platform as well as therefore, opted for more “pre-emptive meas- ise durations for your breaks and has list without icons. members know me to grow.
ts

one that is populated with content that can ures” instead of distraction-blocking. a meditative metronome play during Jaiswal found that she would just bypass the One major insight you worked on
inspire. Messaging apps have acquired more When she needs to start deep work, she app’s pop-up reminders, rendering it useless. you genuinely with their guidance?
ha

the 25 minute work-blocks

significance for communication and collabora- turns on a Youtube playlist. Usually, these are Desai, who also used the same app, says it care for them, There have been many insights.
they push
t.w

tion in a post-pandemic world of hybrid work. generic bossa nova or jazz tracks, but when it MINIMALIST: A clean, black-and- made using the phone cumbersome with the list However, a few stand out. Firstly, I
Entertainment apps don’t just consist of films, is time to work on her novel, she turns on self- white to-do list, the app starts a format making it hard to find useful apps like themselves more’ have understood the importance of
shows or music curated playlists spe- Pomodoro timer when you tap on an maps or ride-booking. placing trust in my team. Secondly,
ha

albums, they also cific to the atmos- item that you’ve listed to get done Duggirala advocates for keeping notifications committing wholeheartedly to pas-
have playlists and Take less restrictive actions that pherics of the world on certain apps off to cut out distractions with- sion is key; everything else follows and eventually leads to success.
//c

guided meditation focus on intention, rather than a she is building. “This MARSHMALLOWS: This app gives out eliminating all accessibility. For others, pos- Lastly, perhaps the most crucial insight, I’ve learned the signifi-
practices to help with helps immediately a different length of break time as itive reinforcement has worked. Interior cance of respecting everyone, irrespective of their title or position.
s:

focus or stress. restrictive diet with punitive disconnect and tune reward each time you finish a designer Shivani Dogra, 44, uses a physical How do you mentor your colleagues at work?
measures, to stay efficient
tp

Most app-restrict- into the creative work-block. You can also add timetable for time-blocking, or committing to I follow a process to hear them and take feedback; I think this
ing, screen-time con- world at hand,” she friends and “compete” on who has a single task within a specific block of time. is one critical aspect that usually gets ignored. Finally, prioritising
ht

trol software such as says, likening turning been most productive Dogra, who splits her time between Goa and fairness is essential, particularly when leading a sizeable team.
Opal, ScreenZen and Freedom, work to disable on these playlists to an “almost Pavlovian sign Delhi, uses 25-minute timers to get through a Ensuring equity among team members guarantees everyone
notifications from certain apps as well as lock of ‘it’s time to focus’”. POMOTODO: The paid version task before taking a break. with a fair chance to develop and thrive under one’s leadership.
them away by prohibiting or complicating This echoes what Arvind Eashwar, a syncs with your calendar app and Called the Pomodoro method, the 25-minute A book or podcast recommendation for mentorship and
access. At a time when the lines between work 33-year-old Bengaluru-based serial entrepre- comes with a library of ambient work block followed by a 5- or 15-minute break growth.
and play blur, users have realised that this can neur responsible for start-ups like Sleek and sounds, like the crashing of waves or is popular with many people. Eashwar, Govil The Story Of My Experiments With Truth by Mahatma Gandhi
be frustrating. Further, with needs and require- AltSoul, says. Through his years working as an white noise, to help with focus. and Desai too follow this productivity principle, provides valuable lessons on leadership, resilience and the power
ments being ever changing, not all days necessi- analyst at McKinsey and later as a strategist at with the help of digital tools like Focus To-Do of mentorship.
tate the same level of “blocking”, meaning the Swiggy, Eashwar used site-blocking browser and Pomofocus.io. How do you unwind?
controls end up too tight, too light, and really extensions like Breathe to stay undistracted. inbuilt (screentime) settings on the iPhone, “When I got down to the bottom of why I Spending quality time with my family is incredibly important
never right. Given this, a number of users have “Blocking doesn’t work because I’d always find which helped, but to be honest, what actually check apps compulsively, I realised it happens to me; they keep me rejuvenated. I enjoy playing squash, as it
begun looking to other means of focus. a reason to open a site or app,” Eashwar says. works is just putting the phone in a different when I’m emotionally anxious or bored,” says keeps me physically active and pushes me to be more competi-
“Most writers struggle to create more while For him, playlists that simulate classroom room when you don’t want to focus on it,” says Dogra. She tried blocking sites on her phone’s tive. Finally, I take time to recharge and unwind by occasionally
reaching more people…The less I am on social sounds help him focus on deep work. Mumbai-based 41-year-old Varun Duggirala, browser, once deleting the Instagram app, too. celebrating with my office colleagues at the end of a hectic week,
media, the better it is for my creativity, but I The way forward seems to be to take simpler, podcaster and co-founder of Emomee that “But ultimately I had to reinstall it,” she con- bringing out my inner DJ.
also need it to create community,” says Delhi- less restrictive actions that focus on intention build programmes for children’s’ emotional cedes with a laugh, because she frequently
based writer Bhavika Govil, 30, putting her fin- and discipline, rather than a restrictive diet education. needs it for work. “Ultimately,” Dogra says, “only Monday Motivation is a series in which business leaders and crea-
ger on heart of the dilemma between social with punitive measures. “I’ve tried some of the It’s a hack that 19-year-old Shrinidhi Jaiswal, good, old-fashioned self- discipline helps.” tive individuals discuss mentors and work ethics.

Can an AI co-worker really make work and life easier? ISTOCKPHOTO

As the office becomes financial management and human resour- eration, ultimately driving revenue communication with customers using
ces. Traditional workflow management growth and business success. generative AI. By providing instant, con-
more complex and systems, however, face challenges in Let’s now move on to accounts payable, sistent, and personalised responses, sig-
demanding, automating keeping pace with the dynamic require- a critical part of the finance operations, nificantly improving customer satisfac-
ments of modern businesses that have especially for businesses dealing with tion and loyalty.
workflow with AI can evolved into a complex web of intercon- multiple vendors/suppliers. Manual han- In human resources, manual processes
be a game changer nected activities and processes, all
demanding efficiency and accuracy.
dling of the processes can lead to issues
like delayed payments owing to inaccu-
can lead to delays in employee onboard-
ing, subjective performance evaluations,
These traditional systems tend to have rate or slow data entry, errors in invoice and difficulty in managing and tracking
Animesh Samuel a rigid structure that relies mainly on verification, and miscommunication with employee training programs. This can
manual processes, making them prone to vendors. These can result in strained ven- result in a disengaged workforce and hin-

I
n the 2001 seminal book Getting Things
Done: The Art Of Stress-Free Productiv-
ity, productivity consultant David Allen
emphasised the importance of workflow,
saying its purpose is not to let the brain
become lax but rather enable it to move
toward more efficient and productive
activity.
The term “workflow automation” was
coined in the 1920s by mechanical engi-
neers and management consultants Fred-
erick Taylor and Henry Grant, who
tracked and depicted work processes
graphically seeking to improve effi-
ciency. Half a century later, digital auto-
mation entered the scene, when German
company SAP developed the first manu-
facturing resource planning software that
standardised business practices through
prebuilt processes.
Today, every department relies on
effective workflows, from customer inter-
actions and marketing campaigns to
human errors and bottlenecks.
Therefore, it’s necessary for enterprises
to prioritise ensuring their workflow auto-
mation is not siloed but cohesive. This
means that every part of the process
should work in harmony with others,
ensuring end-to-end process automation.
LEARNING FROM EACH OTHER
The intricacies of enterprise operations
and the imperative for intelligent automa-
tion have spurred the emergence of AI
(artificial intelligence) assistants or AI
co-workers.
Unlike traditional RPA (robotic process
automation)-based chatbots confined to
predefined responses, AI co-workers can
be trained to think, read, and interact like
humans. Powered by advanced technolo-
gies like NLP (natural language process-
ing), machine learning, deep learning and
generative AI, these AI co-workers com-
plement human teams—learning from
each interaction progressively, just like
human beings.
Consider a large-sized organisation
with a range of offerings where marketing
and sales workflows entail detailed analy-
sis of diverse data sources for strategy for-
mulation. Now envision an AI marketing
analyst seamlessly automating this pro-
cess by aggregating data from social media
platforms, competitor websites, and other
sources, conducting SWOT analyses, and
providing unbiased insights.
This automation not only saves time
and minimises errors but also enables
more informed decision-making. Inte-
grated with an AI business development
executive, this AI-driven approach
enhances efficiency and boosts lead gen-
dor relationships and financial discrepan-
cies. An AI accounts payable executive
integrated with the human team can han-
dle most steps of the process, from recep-
tion of an invoice to authentication and
validation to the final push to the ERP
(enterprise resource planning), enabling
businesses to achieve high rates of
straight-through processing. This ensures
that payments are made accurately and on
time, creating opportunities for vendor
discounts and streamlining the entire
cash flow management.
In the domain of customer care, manual
customer service can lead to long wait
times, inconsistent responses, and diffi-
culty in tracking and analysing customer
feedback trends. This can result in
decreased customer satisfaction and
potential loss of business. However, an AI
customer care executive can transform
the process with automated query resolu-
tion, sentiment analysis, and personalised
dered organisational growth. With an AI
HR executive working alongside the
human teams, a major chunk of day-to-
day HR operations can be automated
ensuring faster recruitment cycles, swift
onboarding, objective performance eval-
uations based on predefined metrics, effi-
cient management of training programs,
and more. This not only saves time and
costs but also ensures a more engaged and
productive workforce.
With the right mix of AI co-workers
complementing human teams across pro-
cesses, the employees can move up the
value chain, taking on more valuable initi-
atives while AI handles the day-to-day
activities—all this while achieving a better
work-life balance.
Animesh Samuel is co-founder and chief
executive officer of E42.
Write to us at businessoflife@livemint.com