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

145

Monday, June 17, 2024

Think Ahead. Think Growth.

mint primer QUICK EDIT

Unreal faces and The G7

AI brains: An
uncanny valley?
BY LESLIE D’MONTE
An Indian avatar is in the world’s first AI beauty pageant shortlist,
where two of the four judges are also AI-powered. Mint explores the
pros and cons of AI’s growing influence, from AI CEOs and assistants
to realistic AI deepfakes and voice clones.
AI-generated avatar Zara Shatavari.
Who is the Miss AI
1 candidate from India?
Zara Shatavari, who has over 7,100
followers on Instagram, promotes
health and fashion. She is an AI-
generated avatar like the other
nine finalists at the World AI
Creator Awards (WAICA) Miss AI
Competition. Jasmeet Singh,
director and co-founder of
Digimozo eServices that “employs”
Zara, posted on LinkedIn that AI
influencers can help small brands
and advertising agencies promote
their products “without needing
Hollywood-like budgets”. The
winner, expected to be declared by
end-June, will get $5000. The top
three will have access to AI
mentorship programmes and PR
services.
ZARASHATAVARI.COM
ZARASHATAVARI.COM
Where are AI avatars
2 being used?
They work as virtual assistants,
tutors, and in video games. They
serve as social media influencers,
offer personalized marketing
interactions, assist in patient
monitoring and therapy, simulate
corporate training scenarios, and
serve as companions to
“lonely”people. AI avatars also
facilitate personalized shopping,
participate in virtual meetings,
and even serve as CEOs. For
instance, NetDragon Websoft,
Dictador Holdings, and Abu
Dhabi’s International Holding Co.
have all appointed AI-powered
entities to executive roles, with
Deep Knowledge Ventures using
AI as a CEO aide.
alarm
Cold War II is worsening. The
G7 summit held in Italy ended
with a stiff warning aimed at
China over its alleged role in
“enabling” Russia’s war in
Ukraine by means of dual-use
tech transfers, a charge Beijing
denied. The G7 waved a threat
of further sanctions against Chi-
nese entities seen as weakening
Western efforts to contain Mos-
cow, whose access to chips the
US is trying to clamp. The West
is also reinforcing what critics
call a “bamboo curtain” on trade
with China. The G7’s joint state-
ment accused the latter of “per-
sistent industrial targeting and
comprehensive non-market
policies and practices that are
leading to global spillovers,
market distortions and harmful
overcapacity in a growing range
of sectors.” This game is feared
to have put the wealthy world’s
national security at risk. Both
the US and EU have cited such
charges to erect barriers against
Chinese electric vehicles. That
Beijing may only be subsidizing
a cleaner planet doesn’t seem to
impress them as an argument;
big commercial interests are at
stake. Bemused as we should be
by the West’s alarm, India’s
challenge is to make the most of
this geopolitical split. After all,
we agree that democracy must
beat autocracy across the world.
MINT METRIC
by Bibek Debroy

A footpath like an archaeological dig?

3 How big is the AI avatar
market?
The AI avatar (or digital human) market,
Usually municipality doing a rejig.
valued at $4.83 billion in 2022, may touch
But in Dadar, the effort entire
$67.54 billion by 2032, according to Was by thieves stealing copper wire.
Market Research Future, with the
entertainment segment accounting for
Urban problems a real whirligig.
23.2%. Gartner predicts avatars leveraging
text-to-video via generative AI tech will
support 70% of digital and marketing
communications by 2025.
QUOTE OF THE DAY
We need a heat index similar to
4 How can I create an AI
avatar?
There are many 2D, 3D and
5 Where’s all of this
leading us?
AI’s lack of emotional intelligence
the air quality index we have on
our phones. AQI tells you the level
humanoid free and paid avatar and complex decision-making
generators including Meta, skills may not make it a good CEO of air pollution and its impact on
Microsoft, Nvidia, Epic Games, etc. but it can certainly assist CEOs your health. This linkage is
Miss AI competition partner with data-driven insights. On the essential to know what actions
Fanvue, too, allows influencers to flip side, deepfake videos, images
create their AI versions. Firms use and audio are making it extremely need to be taken...
techniques such as generative hard for humans to tell real from
adversarial networks, variational fake or synthetic. Moreover, if AI
autoencoders, and natural avatars look and sound too much
language processing to help the like their human counterparts, a SUNITA NARAIN
avatar understand and respond to phenomenon called the ‘uncanny DIRECTOR GENERAL,
human language. One can valley’, it can evoke unease or CENTRE FOR SCIENCE
integrate speech recognition discomfort, and backfire with AND ENVIRONMENT
capabilities using application feelings of human mistrust and
programming interfaces. frustration.

THE WEEK AHEAD

US NSA IN INDIA RBI POLICY MINUTES
18 JUN

21 JUN

US national security advisor Jake Sullivan likely to Reserve Bank of India (RBI) to release minutes of
visit India, according to PTI. the June monetary policy meeting.

STARLINER RETURN INT’L YOGA DAY

18 JUN

21 JUN

Nasa, Boeing likely to bring the Starliner and its Yoga will be the flavour of the day; PM Modi likely
inaugural astronaut crew back to Earth. to participate in an event in Srinagar.

IPOs THIS WEEK GST COUNCIL MEET

22 JUN
19 JUN

Initial public offer (IPO) of DEE Piping Systems Goods and Services Tax Council to meet for the
and Aasaan Loans to open for three days. first time since October 2023.

UK INTEREST RATES NEET RE-EXAM

20 JUN

23 JUN

Bank of England to announce its monetary policy Candidates who could not get full time to attempt
review, a day after May inflation data. the medical entrance exam earlier to get a re-test.
 PLAIN FACTS

Why PSU banks have

struck a purple patch
BY HOWINDIALIVES.COM

T
he Bharatiya Janata Party (BJP) failed to secure a majority on its own at the recently concluded general election. This
created some uncertainty as the party now has to rely on its alliance partners for decision-making. This uncertainty
hit the stocks of banks, particularly state-owned ones (PSU banks), on the day of the results. While the benchmark Nifty
50 fell 5.9%, the Nifty Private Bank index dropped about 7% and the Nifty PSU Bank index slumped nearly 15%. Although
these indices have recovered since, the plunge and subsequent rebound highlight the transformative changes public sector
banks have undergone in recent years, thanks primarily due to government decisions.
These decisions, particularly those addressing bad loans, have boosted the profitability of public sector banks. The com-
bined net profit of the 12 PSU banks crossed ₹1.4 trillion in 2023-24, up 35% from the previous fiscal, and up four times com-
pared with 2020-21, reflecting a turnaround in this segment. In 2020-21, for instance, Central Bank of India, and Punjab
and Sind Bank reported losses. In 2023-24, they reported a net profit of ₹2,549 crore and ₹595 crore, respectively.
Second- and third-tier PSU banks are increasingly contributing to the sector’s profits. The share of State Bank of India
(SBI), the leading PSU bank, in the total net profit of PSU banks has dropped from 64% in 2020-21 to 43% in 2023-24, indicat-
ing a broader turnaround. Consequently, the Nifty PSU Bank Index has surged over 83% in the past year, compared with
a 9% rise in the Nifty Private Bank Index and a 22% increase in the BSE Sensex.

Net profit of PSU banks has jumped PSU bank stocks have beaten private
four times since 2020-21 peers in the past year
Net profit (₹ crore) Change in share indices in past year (%)
2020-21 2021-22 2022-23 2023-24
20,410 82.7
State Bank 31,676
of India 50,232
61,077
829
Bank of Baroda 7,272
14,110
17,788
2,558
5,678
Canara Bank
10,604
14,554
25
2,906 21.7
Union Bank 5,232
of India 8,433 13.1
13,649 9.5

5,115
Remaining 8 16,683
PSU banks BSE Sensex Nifty 50 Nifty PSU Nifty Private Nifty
21,270 Bank Index Bank Index Bank Index
34,135 As on 13 June.
Source: Banks' financial statements Source: Google Finance

Credit Quality The share of PSU banks in total

credit is shrinking
ONE REASON why the market has rewarded PSU banks is Credit outstanding with Share of PSU banks
their successful tackling of asset quality issues. With support PSU banks (₹ trillion) in total credit (%)
from initiatives such as the National Asset Reconstruction Co. Mar 2019 58.3 58.9
Ltd (NARCL), a bad loans bank, and the insolvency and
bankruptcy law, they were able to move bad loans off their Mar 2020 60.7 57.7
books and improve recovery rates.
PSU banks reduced their net NPAs by over ₹50,000 crore in Mar 2021 62.6 56.5
2022-23 compared with 2021-22, the Reserve Bank of India had
said in a report in December 2023. This trend has continued, Mar 2022 67.2 54.8
with net bad loans at SBI dropping to 0.57% of advances in
March 2024, down from 0.67% in March 2023 and 2.23% in Mar 2023 77.1 54.3
March 2020. However, despite improvements in their loan
books, PSU banks have been losing market share to private Mar 2024 87.6 51.8
banks. While their total credit outstanding expanded by over Total credit includes credit outstanding with all scheduled
50% between March 2019 and March 2024, their share of the commercial banks, including public sector, private, foreign, regional
rural and small finance banks. Source: Reserve Bank of India
market dropped from 58.9% to 51.8%.

Term deposits

Share of low-cost deposits has Retail Wars

dropped in PSU banks
THE TREND in deposit mobilization is similar. Total deposits
Breakup of total deposits in PSU banks (%)
with PSU banks grew by over 50% between March 2019 and
60 March 2024, yet their market share declined from 63% to 57%
59.5 during this period.
55 To improve profitability, PSU banks have been aggressively
pursuing low-cost deposits through current and savings
50 Term deposits accounts. These deposits grew by 48% during the period, but
their proportion of total deposits decreased.
45 Mobilizing low-cost deposits often correlates with retail
40.5
loans, as the target customer segments overlap. PSU banks have
40 been trying to increase their presence in credit cards, which
Current account and
savings account have seen a resurgence in recent years, but they still lag private
35
banks. According to a recent report by IDBI Capital, total credit
card spending at private banks grew 20.5% year-on-year this
30
Mar 2019 Mar 2024 April, while PSU banks saw this segment grow by just 5.9%,
Source: Reserve Bank of India despite a lower base.

Valuation Game PSU banks are mostly valued

lower than private peers
PART OF why PSU bank stocks have outperformed private Price-to-earnings ratio (times) on 13 June
peers, despite drawbacks, is their historically low valuations. PSU banks
The price-to-earnings (PE) ratio of three of the top five PSU Union Bank of India 7.7
banks by market capitalization is still below that of the top five Bank of Baroda 7.8
private banks. At higher valuations, PSU bank stocks might turn State Bank of India 11.2
unattractive to some investors, such as mutual funds, which Punjab National Bank 15.3
could exert pressure. The results day crash also points to the Indian Overseas Bank 47.9
dependence of PSU banks on the government. “Capex-led loan Private banks
disbursements are generally routed via PSUs lending money to IndusInd Bank 13.1
the government for capital spending,” Ambit Capital said in a Axis Bank 13.8
February report. Concerns investors had about the stability of HDFC Bank 17.6
the BJP-led National Democratic Alliance government may ICICI Bank 17.9
have eased. The Sensex has crossed the exit poll results high, Kotak Mahindra Bank 18.9
reflecting renewed optimism that could benefit PSU banks, too. This shows top five banks in each category by market capitalization,
www.howindialives.com is a database and search engine for arranged in ascending order of PE ratio.
Source: Google Finance
public data.
PARAS JAIN/MINT

PEANUTS by Charles M. Schulz

 New Delhi, MUMBAI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE*, LUCKNOW*
Monday, June 17, 2024
SENSEX 76,992.75 0.00
Hyundai may beat Korea
discount with IPO in India
Korean companies typically trade at lower valuations than their listed global peers
Alisha Sachdev
alisha.sachdev@livemint.com
NEW DELHI
S
outh Korea’s Hyundai
which began its Indian
odyssey with the Santro
small car 25 years ago has
taken the wraps off the
country’s second-biggest public
share sale, hoping to beat the
so-called Korean discount in
India’s vibrant stock market.
Hyundai Motor Co. will sell up to
17.5% of Hyundai Motor India Ltd
(HMIL), the automaker’s draft IPO
papers filed on Saturday showed.
While the company didn’t indicate
the amount it plans to raise, a mer-
chant banker said, on the condition
of anonymity, the parent plans to
raise $2.5-3 billion at a valuation of
close to $20 billion.
Korean conglomerates typically
see lower valuations than global
peers due to low dividends and the
dominance of opaque chaebols. For
instance, Hyundai Motor Co. cur-
rently trades at a paltry price-to-
earnings ratio of five, compared
with Maruti Suzuki India Ltd (32),
Mahindra & Mahindra Ltd (about
20) and Tata Motors Ltd (about 17).
“With the Hyundai IPO, the top
four major passenger vehicle mak-
ers in India—Maruti Suzuki, Hyun-
dai Motor India, Tata Motors and
Mahindra & Mahindra—will all be
Kaivalya Vohra and Aadit Palicha, founders, Zepto.
Zepto eyes large
orders with dark
store expansion
Sowmya Ramasubramanian &
Ranjani Raghavan
BENGALURU/MUMBAI
Q
uick commerce com-
pany Zepto is looking
to set up bigger dark
stores so it can stock a
larger assortment of products,
according to two people aware
of the company’s plans. The
development comes as the
online grocery platform seeks
to move big-time into non-
grocery delivery, and as inves-
tors queue up to buy a stake in
the four-year-old startup.
Over the coming months,
Zepto will look to set up one or
two big storage facilities in
major cities. These will serve
as hubs as it moves to deliver,
within minutes, high-value
items such as electronics,
appliances, gifting items and
even luxury goods like gaming
consoles, the two people said
on the condition of anonymity.
To be sure, Zepto already
offers some of these categories
in a few cities. However, larger
stores will allow the storage of
more stock-keeping units,
which wouldn’t be possible in
smaller grocery-focused
stores. The idea is also to
replenish goods in the smaller
dark stores that exist within a
2-kilometre radius in most
livemint.com
NIFTY 23,465.60
moto mania
Hyundai Motor’s IPO, the country’s first automobile IPO in two
decades, will allow it to return greater cash to shareholders.
Hyundai Motor India
Revenue (₹ cr, FY23)
60,307
3,45,967
1,17,571
Profit (₹ cr, FY23)
4,709
2,690
Return on net worth (in %, FY23)
23.48 13.29 5.33
*Basic earnings per share; **Hyundai's asking price to earnings ratio based on reported
valuations; #Tata Motors' PE ratio is based on an EPS value calculated using the weighted
average of ordinary shares and ‘A’ ordinary shares; high FY23 PE was due to its low profit
that fiscal.
listed. It would also increase inves-
tor interest in the sector. Hyundai
has one of the strongest powertrain
portfolios globally, be it electric
vehicles (EVs), internal combustion
engine (ICE), plug-in hybrids and
hybrids, as well as a strong presence
in the SUV portfolio in India,” Jay
Kale, an analyst at broking firm
Elara Capital said.
South Korea is currently running
a ‘corporate value-up programme’,
major cities as per demand,
one of the persons said.
“Zepto is slowly adopting
Swiggy Mall’s and Blinkit’s
model of maintaining specific
stores for non-grocery items
and a greater number of small
stores for fast-moving goods,”
this person said. “While Zepto
is making strides in ramping
up e-commerce sales, its focus
remains on quick commerce.”
According to the second
person cited earlier, Zepto had
even considered creating a
separate tab in the smart-
phone application for e-com-
merce orders, much like
Swiggy’s Mall feature, but
decided against it keeping in
mind its commitment to
10-minute grocery orders.
Zepto currently operates
roughly 250 dark stores across
major cities like Mumbai, Ben-
galuru, Hyderabad and Delhi-
NCR, among others. A dark
store is a captive retail store
used to fulfil a company’s
online orders, and is not acces-
sible to the end consumer.
Queries sent to Zepto were
unanswered till press time.
Quick-commerce firms are
increasingly looking to sell
non-grocery items as the large
ticket sizes help boost order
values and volume. Consumer
TURN TO PAGE 6
0.00 DOLLAR ₹83.56
Maruti Suzuki India Tata Motors (consolidated)
PV
market
share (in %)
13.9
Basic EPS* (₹)
8,049
57.96 271.82 6.3
P/E ratio (end of FY23)
25-26**
47.28 150.09#
Source: DRHP, companies
a reform plan for listed companies
to boost shareholder returns and
reduce the Korea discount. Under
the programme, the South Korean
government encourages compa-
nies’ voluntary efforts to return
more capital to shareholders and
improve governance.
“On the basis of reported valua-
tions of ₹1.5 trillion, the asking P-E
is 25.6,” said Aditya Kondawar,
partner, Complete Circle Capital, a
FPIs slash bearish bets ahead of India, Norway’s Equinor in
Union budget, set stage for rally talks for oil reserve, LNG
Ram Sahgal
ram.sahgal@livemint.com
MUMBAI
F T
oreign investors have
closed out almost all of
their bearish bets on index
futures since the day of the
election results, powering Nifty
and Bank Nifty to historic clos-
ing highs.
From holding the second-
highest cumulative net short
positions of 355,379 contracts
on 4 June, they held just 24,415
short contracts on 14 June. The
highest net shorts they held
were 392,756 contracts on
22 March.
Analysts now believe foreign
portfolio investors (FPIs) may
turn buyers of Nifty and Bank
Nifty futures in the run-up to
the budget session later this
month, sparking an extended
rally in both indices.
FPIs held the second-highest
net bearish index futures bets
on 4 June, when the BJP fell
Top CEOs are flocking to Trump again in bid to shape agenda
Cara Lombardo
feedback@livemint.com
W
hen Donald Trump
won the presidency
in 2016, business
leaders flocked to meet with
him, hoping to tone down his
trade policies and populist
rhetoric while encouraging
his business-friendly tax and
deregula-
t i o n
agenda.
They are
flocking to meet him again.
Since Trump vanquished his
last major GOP primary foe,
more big names from the
world of finance have lined up
behind him.
This week, a range of chief
executives listened carefully
as he promised more tax cuts
and hedged some of his
VOL. 18 NO. 145 Rs. 10.00 . Price with Hindustan Times Rs. 15.50 16 PAGES
Belly up: How heatwaves are Green energy, semicon may get
killing fish uP10 govt focus: LIC MF’s Jha uP4
₹0.00 EURO ₹89.30 ₹0.00 OIL $82.84 $0.72 POUND ₹106.18 ₹0.00
Big Retail asked to
declare pulse stock
DON’T MISS
HT
every two weeks
Puja Das & Dhirendra Kumar
NEW DELHI
P
wealth management firm. “The rivate retail chains and
IPO will be critical for both inves-
tors and the company, since India is
online grocers such as
D-Mart, Reliance Retail,
Wipro wins StanChart deal, may
get $50 mn annually for 3 years
Hyundai’s third-largest revenue BigBasket, Amazon and Flip- Wipro Ltd has secured a major information
generator after the US and South kart must now declare the technology (IT) outsourcing contract from
Korea,” Kondawar added. amount of pulses they stock London-based Standard Chartered Plc.The
Hyundai Motor’s IPO, the largest twice a week, as the govern- three-year contract is expected to
in India after Life Insurance Corpo- ment tries to curb the sharp rise generate over $50 million in annual
14.6
ration of India’s ₹20,000 crore- in their prices. revenue for Wipro. >P3
plus share sale in 2022, will be the The Centre recently directed
41.2 country’s first automobile IPO in millers, retailers, wholesalers,
two decades. It is expected to big retail chains, importers, Officials have raised the matter InterGlobe plans to open 12
improve investor perception of the processors and stockists across with major retail chains. HT Miiro hotels across Europe
parent and the visibility of Hyun- the country to disclose stocks Indian aviation company InterGlobe is set to
dai's Indian operations, allowing it every week. However, the adding they are complying. launch around a dozen hotels in Europe
to return greater cash to sharehold- norm has recently been On Friday, all-India average under its new hotel brand Miiro. The brand
ers. HMC is the sole seller, offload- changed to twice a week for big retail prices of chana dal (Ben- will continue back-to-back launches into
ing over 142 million equity shares of private retail chains. Its officials gal gram), tur or arhar (pigeon 2025 with London and Vienna, Neena Gupta,
face value of ₹10. All the proceeds are verifying stocks at ports and pea), urad (black gram), masur CEO of InterGlobe’s hotel division, said. >P7
will go to the Korean parent. The pulses industry hubs. (lentil) and moong (green gram)
offer document says Hyundai is “It has been noticed that big were at ₹85.2, ₹154.5, ₹122.5,
looking to list to ‘enhance visibility retail chains are not declaring ₹93.1 and ₹115.6 per kg, up Private investments taking off;
and brand image’ and ‘provide their stock despite the mandate. nearly 14%, 25%, 10%, 0.6% and consumption up: Sanjiv Puri
liquidity and a public market for The department of consumer 5.5% year-on-year, respectively.
Private investments are taking off, and
equity shares in India’. affairs revamped the stock dis- The consumer affairs depart- household consumption is growing, unlike in
“Listing its India subsidiary indi- closure portal to include yellow ment has revamped the stock many countries, according to Sanjiv Puri,
cates a significant potential for peas and big chain retailer as an disclosure portal to include yel- president of the Confederation of Indian
value realization from the world’s entity, which is effective from 15 low peas and “big chain Industry (CII) and chairman and managing
third-largest passenger vehicle April. These chains have some retailer” as an entity, which is director of ITC Ltd. >P6
market, which has not yet been stock of pulses that they need to effective from 15 April.
fully reflected in Hyundai’s overall declare to avoid any price esca- “All these entities are very
market valuation,” an industry lation,” an official aware of the important. We are trying to NOTE TO READERS The Media
executive said. “The India listing is matter said on the condition of engage with state govern-
Marketing Initiative on Page 3 is the equivalent
projected to allow a re-evaluation of anonymity. ments, and all entities such as
of a paid-for advertisement, and no Mint
the (company’s) remaining opera- In the first week of June, gov- millers, importers, big retail journalist was involved in creating it.
tions and India’s weight in the busi- ernment officials raised pulses chains, wholesalers and deal- Readers would do well to treat it as
stock disclosure with major an advertisement.
TURN TO PAGE 6 retail chains, the official said, TURN TO PAGE 6
Utpal Bhaskar against the backdrop of con-
Out of the woods utpal.b@livemint.com tinued production cuts by the
Analysts believe FPIs may turn buyers of Nifty and Bank NEW DELHI Organization of the Petroleum
Nifty futures in the run-up to the budget session.
Exporting Countries (OPEC)
Nifty 50 Bank Nifty he central government and its allies, including Russia,
23,465.6
23,500 50,500 is in discussions with which have put global supply
50,002.0
Norwegian energy giant chains under pressure.
23,100
49,500 Equinor to secure its participa- Queries sent to India’s
22,700
tion in India’s strategic petro- energy ministry and Equinor
48,500
leum reserves (SPR), as part of on Thursday evening were
22,300 efforts to enhance the energy unanswered till press time.
21,900
21,884.5
47,500
46,928.6
security of the world’s third-
largest energy consumer.
In a related move, negotia- LNG imports rose by 17.5% in
Energy security is pivotal
for India, which imports over
85% of its oil and 55% of its gas
21,500 46,500 tions are also ongoing for long- FY24, reaching 23.5 mmtpa. requirements. Fluctuations in
4 Jun 14 Jun 4 Jun 14 Jun
Source: Bloomberg
term deals for supply of liqui- global prices can significantly
fied natural gas (LNG) from with Equinor for sourcing impact India’s import bill,
SARVESH KUMAR SHARMA/MINT
Equinor’s extensive portfolio long-term LNG from their stoke inflation, and widen the
short of a majority by 32 seats at
240, against 330 expected by
market constituents.
tions that act as a hedge to their
Indian equity assets worth $797
billion, according to NSDL.
in the US and Qatar, according
to two people aware of the
development.
portfolio in the US and Qatar.”
If talks are successful, it
would mark the second com-
trade deficit.
In fiscal year 2022-23
(FY23), India’s import of crude
However, growing expecta- The short-covering resulted “We are asking Equinor to mitment to India’s SPR pro- oil and petroleum products
tions of political stability since in a large part of the 7% rally come in our SPR, and also par- gramme, following a deal with surged 29.5% to $209.57 bil-
then, with the government from the Nifty’s closing low of ticipate in our E&P (explora- Abu Dhabi National Oil Co lion, official government data
being headed by Prime Minis- 21,884 on 4 June to the close of tion and production) pro- (Adnoc). Such deals allow show. LNG imports also rose
ter Narendra Modi and key 23,465.60 on Friday. The Bank gramme," one of the two peo- India to have large amounts of by 17.5% year-on-year in FY24,
portfolios remaining with the Nifty rose 8.15% from a low of ple cited above said, requesting crude oil in reserve for emer- reaching 23.5 mmtpa.
BJP, have resulted in FPIs anonymity. "The discussions gencies.
squaring off their short posi- TURN TO PAGE 6 are ongoing. We are talking These negotiations come TURN TO PAGE 6
harshest promises on immi- original target, according to a tax cuts, he has said he would
gration. person who was there. be friendly to artificial intelli-
The executives say their Dimon surprised his peers gence and light on regulation,
willingness to listen to Trump at the World Economic in particular for dealmaking.
stems from frustration with Forum in Davos, Switzerland, The Federal Trade Commis-
President Biden , a growing early in the year when he said sion during the Biden admin-
realization that Trump could in a television appearance istration has been among the
win and a desire to shape the that Trump was “kind of most aggressive in recent
Republican’s agenda before right” on some things, such as years trying to block mergers
the election—rather than trade and immigration. and rein in giant companies.
scrambling to do so after. Moynihan, more under- But Trump’s policies in
Many who stated than Dimon, has criti- areas such as immigration and
distanced cized Biden’s policies as bad statements he has made that
t h e m - for business, based on conver- question the rule of law make
selves from Executives say their willingness to listen to Donald Trump stems sations with the bank’s cli- businesses wary. On Thursday,
Trump following the Jan. 6, from frustration with President Joe Biden. AFP ents. He has told people that he floated to House Republi-
2021, riot at the Capitol by the bank clients, many in the cans the idea—lacking in
former president’s supporters to Trump’s policies or spoken addressed the group. Trump middle of the country, are details—of an all-tariff federal
have softened their criticisms. out about Biden’s. told them that as president, he complaining about Biden’s revenue system, large enough
Even CEOs such as JPMor- Dimon, Moynihan, Citi would be better than Biden on policies, specifically about to replace the income tax.
gan Chase ’s Jamie Dimon and CEO Jane Fraser and Wells taxes and the economy. permitting for energy pro- He told business leaders
Bank of America ’s Brian Fargo ’s Charlie Scharf were He said the corporate tax jects and dealmaking. that he favored changes to the
Moynihan , who historically all in attendance at the Busi- rate should be at 20%, at one Trump is happy to tell busi- immigration system and
avoid making endorsements, ness Roundtable meeting point positing it could go as ness leaders mostly what they
have shown signs of warming Thursday where Trump low as 15%, his campaign’s want to hear. Besides more TURN TO PAGE 9
02 MONDAY, 17 JUNE 2024
NEW DELHI ECONOMY & POLICY LIVEMINT.COM

STRAIGHT
F O R WA R D
Govt procures wheat below DCI orders
crackdown
SHASHI SHEKHAR

Respond to this column at

feedback@livemint.com
target for second straight yr on quacks in
dental care
CENTRE’S STABILITY The government has procured 26.6mt of wheat, which is 28.7% lower than its target of 37.3mt
Somrita Ghosh
somrita.ghosh@partner.livemint.com
NEW DELHI

WILL LEAN ON HOW

T
he Dental Council of
Puja Das though, the Centre is not worried as India (DCI) is planning to
Low, but adequate
THESE STATES VOTE puja.das@livemint.com
NEW DELHI FCI's wheat stocks are already at a 16-year low of 30.3mt. But the government
says it has adequate stocks to meet food safety and market intervention needs.
26.6mt will suffice to meet its public dis-
tribution system (PDS) and market
intervention needs, Chopra said.
crack down on individu-
als working as dentists without
the necessary medical qualifi-

T
he Centre missed its wheat Central grains stock position and Yearly wheat procurement “Taking the worst-case scenario, cations, and clinics employing
stock norm (in million tonnes)

D
espite initial obstacles, the Narendra Modi-led govern- procurement target for the since 2020-21 wheat procurement could be 26mt, such people. The move follows
ment is back in harness for its third term. But will it be sta- second consecutive year as Stock position (as of 13 June)* Procured quantity (in million tonnes) which we did last year. This would be a rise in complaints about such
Stocking norm (1 July)
ble? The government appears to face no immediate purchases of India’s main rabi 2024-25 26.6 adequate to meet the NFSA (National practices.
threat. However, over the next four months, it will face an agni- or winter crop for the 33.1 Food Security Act) requirement of The dentist body has
30.3
pariksha (trial by fire) as four states—Jammu and Kashmir, Hary- 2024-25 season came in at 26.6 million 27.5 2023-24 26.2 18–20mt and market interventions of directed state dental councils
ana, Maharashtra, and Jharkhand—go to polls. The outcomes of tonnes (mt) 28.7%—lower than its 14mt. We had an opening balance of to take legal action against any
these elections could reshape the political landscape. 37.3mt target. 2022-23 18.8 8mt,” Chopra had said. individual or business found to
In Jammu and Kashmir, the Supreme Court has ordered Wheat stocks with the government’s 13.5 The department of food and public violate the Dentists Act of 1948
assembly elections—the first in the province since Article 370 procuring agency—the Food Corpora- 2021-22 43.3 distribution said in a statement on and the updated Dentists (Code
was repealed on 5 August 2019—to be held by September. These tion of India (FCI)—are already at a Thursday that it had no plan to alter the of Ethics) Regulations of 2014
elections are critical for many reasons. For one, they will show 16-year low of 30.3mt, a little over the 2020-21 38.9 import duty on wheat for now as India and to immediately issue cease
Wheat Rice
whether voters support or reject the development projects, the buffer mandate of 27.5mt for 1 July. Offi- had sufficient stocks to meet domestic and desist orders.
*includes stocks in transit
division of the state, and the abrogation of Article 370. The recent cial data shows that the previous lowest requirements and for market interven- The regulator has instructed
Source: Food Corporation of India, ministry of consumer affairs, food and public distribution
resurgence in terrorist attacks has prompted fresh questions, but wheat stock in the central pool was at tions if required to keep prices stable. states to increase public aware-
SARVESH KUMAR SHARMA/MINT
the track record of our armed forces has been excellent, and it is 24.12mt on 1 June 2008. It further said that the government ness about the hazards associ-
inappropriate to doubt their efficacy in combating terror. So, the “Procurement of wheat is largely on quality, against the government’s Quoting the food secretary Sanjiv was closely monitoring the market price ated with having dental proce-
question is, will the government be able to handle the situation? over, and we can consider 26.5mt as the minimum support price of ₹2,275 a Chopra, Mint reported that the govern- of wheat. dures from unlicensed practi-
The Lok Sabha elections in Jammu and Kashmir yielded final procurement; it could be a little quintal, according to spot traders. ment may miss its wheat procurement Official retail price of wheat on Sun- tioners and has mandated that
noticeable results. The people defeated Omar Abdullah and over that as 100-500 tonnes are coming Overall, the Centre could procure target for the second consecutive year day was unavailable as the consumer a thorough report of the action
Mehbooba Mufti, ex-chief ministers of undivided Jammu and from Punjab and its neighbourhood. So, only 4.8mt of wheat from Madhya Pra- due to an initial delay in harvest amid affairs ministry website was not accessi- taken and outcomes achieved
Kashmir. BJP did not contest elections in the Valley, but it did win the final figure is 26.5mt,” an desh against a target of 8mt, and weather disturbances in Punjab, ble at the press time. be given to it within 30 days,
two seats in Jammu. An independent candidate won one of the official from FCI said. 7.1mt purchased last season. Haryana, and Rajasthan, Food inflation, which said an official aware of the
remaining seats, while the National Conference won the rest. The low procurement— Purchase from Punjab availability of remunerative accounts for nearly 40% of matter.
PDP is collapsing, but the National Conference has emerged
the strongest party in the region, although Omar Abdullah lost.
similar to last year’s—is
mainly on account of mt
Wheat procured
4.8 was 12.4mt compared with prices in the open market,
the target of 13mt and the and deficiencies in the mt
Wheat required to
26.6
the overall consumer price
basket, has remained
The DCI informed state den-
tal councils last week that it had
BJP still needs to expand its base to capture key seats. Will the saf- lower purchases in Mad- previous year’s purchase procurement machinery unchanged. It was 8.69% noticed some clinics are pro-
fron team accomplish its long-held dream of getting a foothold hya Pradesh, one of from MP against a of 12.1mt; from Haryana, of states. meet PDS, market in May and 8.70% in April. viding dental treatments, teeth
in the valley this time? The Congress is in a terrible state. Will it India’s major producers, target of 8mt 7.1mt of wheat was pur- “The government fixes intervention needs By comparison, it was 3% a scanning and aligner services at
look to cross the bridge with the help of an alliance? and farmers preferring to chased against a target of an estimated target for pro- year ago. However, retail patients’ homes. “The protec-
The narrative of this state will be shaped by the sentiment of sell to private traders rather 8mt and the purchase of 6.3mt curement taking the maxi- inflation in wheat rose to 6.5% tion of patient health and the
the electorate. The whole world is watching. than the government because of in the previous year; from Uttar mum figure into consideration, so in May from 6% a month ago and maintenance of professional
Now, let’s discuss Haryana. In 2019, the BJP won 10 Lok Sabha better prices. Pradesh, it was a mere 930,483 tonnes that funds are arranged beforehand and 12.6% a year ago. standards are of utmost prior-
seats here. This time, it had to settle for half that number, with the Desi wheat prices in key wholesale against a target of 6mt and last year’s payment could be made to farmers at Queries sent to the FCI and the food ity,” it added.
Congress and the Aam Aadmi Party joining forces against it. This markets of Madhya Pradesh are quoted procurement of 219,373 tonnes, as per the earliest,” a senior official had said. and public distribution department The move was welcomed by
combination received 47.61% of the votes. Though BJP received at ₹2,450–2,600 per quintal, depending the latest data from FCI. Despite depleting stocks of wheat, remained unanswered at press time. dentists.
46.11% of the votes, its vote share increased by about 10 percent-
age points compared with the last
BJP, without assembly elections. The Congress has
leaders with
statewide clout, receiving
also performed significantly better,
15.59% more votes than the
last assembly elections.
Heatwaves to abate Wednesday ABDM to enhance cancer care
has to rely on
PM Modi’s
The case of Maharashtra is even
more interesting. It had more political
appeal in states actors fighting for their identity than
Puja Das
puja.das@livemint.com
via seamless sharing of records
any other state. Uddhav Thackeray has NEW DELHI
again emerged as the most powerful, Priyanka Sharma vened to strategize the launch

N
while Sharad Pawar, known as “Maratha Kshatrap”, has proved orth-west, central and priyanka.sharma@livemint.com of a pilot, highlighting ABDM’s
himself yet again with his party winning eight of 10 seats. INDIA eastern India are set to NEW DELHI potential to digitally integrate
bloc won 30 of the 48 seats here. Before the election, Maharash- get relief from swelter- healthcare services and reduce

S
tra was seen as a stronghold of BJP and its allies. ing heat from Wednesday, the haring of medical repeat tests and patient costs.
Maharashtra’s people, like those in Haryana and Jammu-Kash- India Meteorological Depart- records of cancer “ABDM has the potential to
mir, have rejected manipulative politics. Ajit Pawar, who tried to ment (IMD) said. patients who visit multi- bridge existing silos among
project himself as the true leader of NCP, has been rejected, with Heatwave conditions have ple facilities is set to be stream- different stakeholders of the
his faction winning just one seat. The chief minister, Eknath been prevailing in Haryana lined in a pilot. healthcare ecosystem through
Shinde, saved face by winning seven seats but fell behind Uddhav since 17 May and in Madhya The project is a collabora- digital means. This is espe-
in state-wide appeal. This situation could pave the way for the Pradesh and Uttar Pradesh tion between the National cially beneficial for patients
spectacle of aayaram-gayaram (party switching) before assembly since 18 May after beginning in Health Authority (NHA) and with chronic diseases, where
elections in Maharashtra. eastern India in mid-April. the National Cancer Grid patients have to visit from one
Finally, let us discuss Jharkhand. This state, since its inception, Average temperatures have The northern limit of south-west monsoon is continuing to pass (NCG) under the Ayushman hospital to multiple points of
has been doomed to corruption and the imprisonment of its top been ranging between over Navsari, Jalgaon, and Chandrapur, among other places. AP Bharat Digital Mission The initiative aims to ensure care over a long time,” the per-
leaders. Hemant Soren, its former chief minister, is behind bars 45-47°C. (ABDM). With seamless continuity of care. MINT son cited above said.
on corruption charges, but the government has not fallen. Temperatures in the past 24 Warm night conditions are Gangetic West Bengal, exchange of medical records, “There is often the problem
Soren’s wife Kalpana has won the Gandey by-election and is now hours were 44-46°C in parts of seen in isolated pockets of remaining parts of Sub Hima- accessible to doctors in the with departments and tertiary of unavailability of standard
an MLA. However, his sister-in-law, Sita, who had contested the Haryana and Delhi; Punjab, Punjab, Haryana, Chandigarh, layan West Bengal and some ABDM network, the initiative care providers like radiology, electronic health data when a
Lok Sabha election from Dumka on a BJP ticket lost. East Uttar Pradesh, north Uttar Pradesh and Madhya parts of Bihar over the next seeks to ensure continuity of ENT and respiratory units, patient moves between facili-
This election has brought to light not only the troubles in Madhya Pradesh & Jharkhand; Pradesh till Monday, in Delhi four-five days. care. India has a high cancer across participating hospitals. ties, leading to repeat tests and
Jharkhand Mukti Morcha (JMM) but also those in the Soren fam- north Rajasthan, West Uttar till Tuesday, it added. IMD on 31 May declared the burden, with around 1.46 mil- The medical records will be high expenses.”
ily. Pradesh and in isolated pock- On the southwest mon- onset of the southwest mon- lion patients in 2022. shared with patient consent The initiative is expected to
Nonetheless, INDIA Bloc, which includes JMM, appears to be ets over north Odisha and soon’s progress, IMD said that soon over Kerala, one day Key government and trust using digital health ID. help patients, hospitals, clini-
forming a powerful alliance of tribal, Christian, Dalit, and Muslim Gangetic West Bengal. The the Northern limit of monsoon before its usual date, attribut- hospitals involved in treating “We are very hopeful about cians, and other stakeholders,
populations. Despite winning nine of fourteen seats this time, the highest maximum tempera- is continuing to pass through ing it to cyclone Remal formed cancer, like PGIMER (Chandi- this project. Cancer is a disease understand the benefits of
BJP has suffered a setback. Here, too, it has no leader with state- ture of 46.3°C was reported at Navsari, Jalgaon, Amravati, in the Bay of Bengal. Though it garh), Tata Memorial Hospital where a patient must approach ABDM. The outcomes may
wide appeal. Kanpur IAF in East Uttar Pra- Chandrapur, Bijapur, Sukma, is progressing faster than usual (Mumbai), All India Institute healthcare facilities repeat- help determine how the sys-
The message is clear: BJP needs to address local issues in these desh. Malkangiri, Vizianagaram and over the Peninsula, it is yet to Of Medical Sciences (AIIMS edly. So, the importance of tem could be extended to ben-
states, but without leaders with statewide clout, it has to rely on “Heatwave to severe heat- Islampur. pick pace in eastern India. Jodhpur), and National Cancer longitudinal health history efit patients undergoing treat-
PM Modi’s appeal. If the results belie expectations, NDA allies wave is likely to continue over Conditions are favourable In the case of northwest Institute (Jajjhar), will pilot the and keeping health records ment for chronic diseases such
may become apprehensive. INDIA bloc holds power only in many parts of Northwest, Cen- for further progress into more India, the onset date for Delhi electronic medical records systematically is proposed to as diabetes, hypertension and
Jharkhand, and if election outcomes turn against it, the limited tral and East India in the next parts of Maharashtra, Chhat- is 30 June, and 5 July or after system, or the Health Manage- be shown by the pilot,” an offi- renal complications. Queries
momentum it gained on 4 June will be lost. days and gradually abate by tisgarh, Odisha, Coastal for Rajasthan. Rainfall across ment Information System. cial from a participating hospi- sent to the health ministry
Shashi Shekhar is editor-in-chief, Hindustan. Views are per- 2-3°C thereafter,” the weather Andhra Pradesh & Northwest the country since 1 June The objective of the pilot is tal said, requesting anonymity. spokesperson remained unan-
sonal. bureau said on Sunday. Bay of Bengal, some parts of remained 18% deficient. to scan and share the records In May, stakeholders con- swered.

Govt plans to operationalize 12 new coal mines under its 100-day agenda CORRECTIONS AND
CLARIFICATIONS
Mint welcomes comments,
Rituraj Baruah & Under the 100-day plan, the The government aims to while transporting coal by cess and set up a centre each for suggestions or complaints
Subhash Narayan ministry plans to operational- take annual coal production to truck, the people cited above every Coal India subsidiary. about errors.
ize 12 new mines. It also plans to 1.5bt by the end of the decade said. A command and control
Readers can alert the
NEW DELHI increase mechanization of coal with the peak rated capacity of The second person said other centre assists in ensuring con-
newsroom to any errors in the
loading by 20 percentage mines—the highest possible key plans under the 100-day signment security, monitored paper by emailing us, with your

T
he Union coal ministry
plans to operationalize 12
new coal mines as part of
the 100-day agenda of the
newly formed central govern-
ment. India is among the
world’s largest miners of the
fossil fuel, with coal production
touching a record 997.4 million
tonnes (mt) in FY24. Although
production fell short of the
government’s 1-billion tonne
(bt) target last fiscal year, it is
expected to surpass that mark
this fiscal year (FY25).
points to about 33% (of all coal
loaded),” said a person aware of
the plan. These mines would
include those of state-run com-
panies along with other captive
and commercial mines, the
person added.
The development comes at a
time when the government is
set to launch the next round of
auctions for commercial coal
mines in this week. About 62
blocks will be offered by in this
10th round of auctions.
The focus on launching new
annual output—at 2bt.
In FY24, a total of nine new
mines started production. In
April, Press Trust of India
reported that by the end of this
year 20 new mines would be
made operational. This push
for new mines is in line with the
The coal ministry plans to mechanize coal loading by another government's target to stop
20 percentage points, to about 33% of all coal loaded. REUTERS importing coal for power gen-
eration by FY26.
mines comes at a time when the global push mounts for replac- The focus on mechanization
demand of coal for power gen- ing fossil fuels—the main cause of coal loading and handling
eration is gaining momentum of climate change—with will improve efficiency and
in a hot summer, even as a renewable sources of energy. reduce air pollution caused
agenda include the setting up of
command and control centres
at all the seven coal-producing
subsidiaries of state-run Coal
India Ltd. One has already been
set up at Western Coalfields,
and the ministry now wants to
fast-track the process in the
remaining six subsidiaries
The setting up of such cen-
tres for coal mines in the coun-
try was being considered under
the Coal Logistics Plan, but in
the 100-day agenda, the minis-
try wants to fast-track the pro-
productivity, speed of flow, and full name and address to
identification of bottlenecks in feedback@livemint.com.
the mining and logistic process
for corrective action in real It is our policy to promptly
respond to all complaints.
time. The ministry is also Readers dissatisfied with the
expected to seek approval for a response or concerned about
coal exchange from the Union Mint’s journalistic integrity may
Cabinet within the first 100 write directly to the editor by
days of the government, The sending an email to
Economic Times reported on 13 asktheeditor@livemint.com
June. Coal minister G. Kishan Mint’s journalistic Code of
Reddy is set to launch the 10th Conduct that governs our
round of commercial coal block newsroom is available at
auctions this week. www.livemint.com
rituraj.baruah@livemint.com

FOR ANY QUERIES/DELIVERY ISSUES

CALL: 60004242, Monday-Saturday, 10am-6pm (Delhi, Mumbai, Bengaluru, Kolkata, Chennai, Hyderabad, Ahmedabad, Chandigarh, Pune and Lucknow) MAIL: delivery@livemint.com TO SUBSCRIBE: Give a missed call on 7039035039 or visit www.mintreaders.com or write to us at subscription@livemint.com

First published in February 2007 to serve as an unbiased and clear-minded chronicler of the Indian Dream.
RAVI KRISHNAN (EDITOR); PUBLISHED/PRINTED BY MANHAR KAPOOR ON BEHALF OF HT MEDIA LTD, 18-20 Kasturba Gandhi Marg, New Delhi 110001
Printed at HT Media Ltd presses at •Plot No. 8, Udyog Vihar, Greater Noida, Distt Gautam Budh Nagar, Uttar Pradesh 201306; •MNSPrinters Pvt. Ltd, 345/4, Bhatrahalli, Near KR Puram RTO, Old Madras Road, Bangalore 560049; •Saraswati Print Factory Pvt. Ltd, 789, Chowbhaga (W), Near China Mandir, Kolkata 700 105; •MNSPrinters Pvt. Ltd, 76/1, Poonamallee High Road, Velappanchavadi, Chennai 600077; •
Bhaskar Print Planet, Survey No. 148P, Changodar Bavla Highway, Sanand (Tal), Distt Ahmedabad, Gujarat. •Jagati Publications Ltd, Plot No. D75 & E52, APIE Industrial Estate, Balanagar, Rangareddy Distt. Hyderabad 500037 *Also available in Chandigarh, Pune and Lucknow.
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 DEALS, TECH & STARTUPS MONDAY, 17 JUNE 2024
NEW DELHI 03

m THE MONDAY QUIZ

1) WHAT is Apple bring-
ing to a new version of
Siri through its partner-
ship with OpenAI?
3) WHAT type of chips is Mediatek launching for Mic-
rosoft Windows PCs?
4) WHICH firm did
Apple surpass to
become the world’s
most valuable firm?
GLOSSARY
2) WHAT new technol-
ogy did Nokia’s CEO use
to make a phone call
with improved quality?
5) WITH which initiative
did Snapdeal sign an MoU
for language translation
services and products?
Wipro wins multi-million Paytm in
talks to sell
dollar deal from StanChart
ticketing biz
to Zomato
Bloomberg
feedback@livemint.com
Three-year contract will generate $50 million in annual revenue for the IT services major
P
aytm is in talks with
Zomato Ltd to sell its
Jas Bardia movie and events ticket-
jas.bardia@livemint.com ing business, according to peo-
BENGALURU ple familiar with the matter, as
the beleaguered fintech com-

SaaS waste: SaaS waste is enhancing its security
the unnecessary or ineffi- measures over time. While
cient purchasing of cloud- it is not a new concept,
based software. This com- governments and busi-
monly arises when organi- nesses worldwide now
sations acquire Software- view Red teaming as a criti-
as-a-Service (SaaS) tools cal tool for identifying and
that are not essential or mitigating risks associated
utilised. SaaS wastage may with generative AI.
also stem from employees
not fully utilising applica- Greylisting: Greylisting is
tions, failing to terminate a spam-fighting method
subscriptions during team used by mail servers to
transitions, and overall temporarily block emails
poor management of SaaS from unknown or suspi-
resources. cious sources. It verifies
the sender’s IP address,
email and recipient email
against a list of recognized
senders, known as the
greylist. Any new or
unrecognized senders are
initially rejected with a 4xx
error code, prompting
them to resend the email.
Red teaming: Red team- Perishable data: Perisha-
ing is a structured testing ble data is information
methodology that is util- whose value can decrease
ised to uncover weak- substantially during a
nesses and vulnerabilities specified time. A signifi-
in AI models. This cyberse- cant decrease in value
curity practice involves occurs when the opera-
ethical hacking to simulate tional circumstances
real cyber-attacks, identi- change to the extent that
fying potential vulnerabili- the information is no
ties in a system and longer useful.
3) AI chips 4) Microsoft 5) Bhashini
1) ChatGPT technology 2) Immersive audio and video
THE MONDAY QUIZ ANSWERS:
W
ipro Ltd has secured pany carves a revival strategy
a major information amid weakening sales.
technology (IT) out- The discussions between
sourcing contract Paytm, officially known as
from London-based One97 Communications Ltd,
Standard Chartered Plc., according to and online food delivery firm
two people familiar with the matter. Zomato are in advanced stages,
This is the second contract win under though there are other suitors
new chief executive officer (CEO) Srini- for the business, the people
vas Pallia. said, declining to be named as
The three-year contract is expected the matter is private.
to generate over $50 million in annual Talks are ongoing and no
revenue for Wipro. However, Mint final decision has been made,
could not independently verify the the people said.
value of the contract. Paytm, run by billionaire
“The deal would include Wipro han- founder-CEO Vijay Shekhar
dling Standard Chartered’s data trans- Sharma, last month reported its
formation work and IT infrastructure. first sales decline on record,
There will be a digital aspect to it as and vowed to trim non-core
well,” said one of the two people, seek- assets. It also warned of job
ing anonymity. Banks are the largest clients for Indian IT services firms, accounting for 25-30% of their revenues. MINT cuts, reflecting the fallout from
However, it couldn't be ascertained regulatory action on Paytm
whether the contract between Wipro like to categorically state that the infor- client leads,” said Phil Fersht, chief year ended 31 March 2023. Payments Bank Ltd that’s cur-
and Standard Chartered is a new deal, mation mentioned is inaccurate.” analyst of outsourcing research firm In line with industry trends, Stan- tailed much of the fintech’s
or part of an existing agreement. According to a stock exchange filing HFS Research. dard Chartered has been outsourcing business and forced it to forge
“Wipro already had a certain num- on 6 June, Wipro won a five-year deal Pallia, who has been with Wipro for work to fewer IT services companies. new partnerships with lenders.
ber of people working with Standard from a US-based communications ser- over three decades, took over as the “StanChart has been outsourcing its Paytm does not control the
Chartered. Now, that number may have vice provider, valued at $500 million, CEO on 6 April, replacing Thierry Del- work to about three dozen IT services bank but relied on it for digital
gone up,” said a second executive privy, or $100 million annually, till 2029. This aporte, who had held the position since forms, including Wipro, but it is look- wallets and payments traffic
also seeking anonymity. ing to reduce this number to less before the central bank’s move
If India’s fourth largest IT servi- RENEWED VIGOUR than half-a-dozen IT services ven- earlier this year.
ces firm were to get at least $50 mil- dors,” the second executive said. Paytm and Zomato did not
lion annually from the StanChart IF Wipro secures WIPRO also won a ANALYSTS THE two major Banks are the largest clients for respond to requests for com-
account, it would translate into rev- $50 mn annually
from StanChart, it
five-year deal from a
communications
attributed these
recent contract wins
contracts will
provide a significant
Indian IT services firms, account- ment outside of regular busi-
enues of $150 million by 2027, the would make service provider, to a more aggressive revenue boost to the ing for 25-30% of their revenues. ness hours.
second person added. $150 mn by 2027 according to a filing sales approach IT services firm However, over the past two years, Paytm does not disclose
Email queries to a Wipro spokes- they have significantly reduced standalone numbers for its
person remained unanswered till their technology spending, leading movie and events ticketing
press time. deal would contribute to 0.9% growth July 2020. to the weakest growth for software ser- business. It reported annual
In an emailed reply to Mint’s queries, for Wipro. However, the firm did not The two major contracts under Pal- vices companies in 25 years. sales of ₹174 crore ($208 mil-
a StanChart spokesperson said: “We disclose the name of the client. lia's leadership will provide a signifi- According to the National Associa- lion) in the fiscal year through
would like to state that as an interna- Analysts attributed these recent con- cant revenue boost to Wipro, the only tion of Software and Service Compa- March 2024 in its marketing
tional bank, we work with several part- tract wins to a more aggressive sales one among India’s top four IT services nies (Nasscom), India's IT sector was services business, which
ners who support us in our transforma- approach by the IT major. “We are defi- firms to report a revenue decline in the estimated to grow by 3.8% to $254 bil- includes movie and events as
tion journey. With regards to the infor- nitely seeing a more aggressive and year ended 31 March, posting revenue lion in FY24, marking its slowest well as credit card marketing
mation cited in your mail, we would focused sales approach from Wipro’s of $10.8 billion, down 3.8% from the growth rate in 25 years. and gift vouchers.

Second Episode of Crafting Bharat

Mint Media Marketing Initiative

Podcast Series Dive into the Indian Startup Ecosystem

Rishabh Sood, co-founder and CTO of BluSmart discusses his founder journey, building a sustainable
business and adoption of EVs.
Over the past decade, the
Indian Startup Ecosystem
has undergone an excep-
tional evolution, surfacing
as a vibrant and dynamic
landscape for entrepre-
neurs. India is hosting a
plethora of startups
ranging from tech-driven
to those focused on social
impact and sustainability.
The "Crafting Bharat - A
Startup Podcast Series"
powered by AWS, and an
initiative by NewsReach,
in association with VCCir-
cle, unlocks the secrets
behind these successful
entrepreneurs’ journeys
aiming to equip aspiring
entrepreneurs and
business enthusiasts with
invaluable insights. The
podcast series is hostedby
Gautam Srinivasan, famed
for hosting a diverse range
of TV and digital
programs, currently
consulting editor at CNBC
(India), CNN-News18,
Mint, HT Media, Forbes
India, and The Economic
Times.
Explore the tales of Indian
startup founders' transfor-
mation from dreams to
reality, navigating
challenges to seize oppor-
tunities through the
Crafting Bharat Podcast
Series.
Edited Excerpts:
Segment 1:
The Incubator
How did you scale up
but remain close to your
customers in identifying
their pain points, and,
once you solve those
issues, how do you keep
the product relevant?
The idea is that when you
scale you need to do
things which do not scale.
Many companies do this
when they scale, they start
looking at customers as
the data points. They will
make pie charts and try to
figure out why their
customers are unhappy,
we also did that but what
Rishabh Sood, co-founder and CTO of BluSmart discusses his founder journey, building a sustainable
business and adoption of EVs.
or feedback as data points
and in pie charts, you lose
the emotion out of it.
You could iron out the
issues with a unique full
stack playbook that
learnt from degraded
user experiences of your
competitors due to their
built the technology
for it. And that is what
helped us to figure out that
we need to have the cars
Focus on in our control, that way we
can make sure that the
building a condition is extremely
good and well maintained.
sustainable The schedule model was
also a game changer for
AWS has been a trusted
and supportive partner for
us right from day one.
We’ve built a lot of technol-
ogy and machine learning
algorithms for our sched-
uled ride model wherein
we were able to make sure
the car reaches on time.
97% of our rides are
reaching in time with zero
cancellations. We had to
predict time required for a
ride during different times
of the day for which we
built out machine learning
models which we are
running on the AWS
infrastructure, and it’s
been running smoothly.
Segment 2:
The Accelerator
What’s the one lesson
from BluSmart’s
relatively slow expan-
sion strategy that
startup founders can
learn from?
We started with Delhi and
today we have 7000 cars
to maintain long lasting
co-founder relation-
ships?
I think what it really boils
down to is trusting each
other and having
confidence in the ability of
each other but at the same
time you need to question
and push each other as
well. You need to maintain
that balance of trusting but
also really push and ask
questions.
India’s startup ecosystem
is undergoing a significant
transformation as the
motivated founders lead
with exceptional innova-
tion. The passion and
vision of the entrepreneurs
is keeping the Indian
startup ecosystem in
motion.
Stay tuned to the Crafting
Bharat Podcast Series as
we bring you these inspira-
tional entrepreneurs for
insightful and candid
discussions with Gautam

India's rapid urbanization

is contributing to rising
pollution levels, but vision-
ary founder Rishabh Sood,
co-founder and CTO of
BluSmart, is revolutioniz-
ing the ride-hailing sector
with electric vehicles
(EVs). In the Crafting
Bharat Podcast Series,
Sood talks about his
founder journey, building a
sustainable business and
adoption of EVs.
we also did was to always
try to maintain our ground
connect, so, we would
become customer support
agents for a day and
receive customer
complaints, feel the pain &
anger, and empathize with
them. This is what helps
us to stay relevant, we
physically go through
individual complaints. The
idea is to capture the
emotion. When you start
looking at the suggestions
asset-light models and
resolve these issues to
create a WOW experi-
ence while onboarding
and retaining custom-
ers?
If we built the same tech,
built an aggregator model
or if we get driver partners
with their own cars then
we will land up with the
same problem, so, we
fundamentally changed
the business model and
business for us and the reason for us to
do a schedule model was
spread across just two
cities; Delhi and Bangalore
Srinivasan.
but these are big markets.
long-term because you cannot do a
real-time ride with 70 cars. I would say if you’re able to Scan the QR Code to
succeed in Delhi then
growth, not just How is AWS enabling there is no reason why you
Watch the full episode
BluSmart to power-up will not be able to go to
hitting a billion its backend to any other city and
overcome issues around succeed. That’s what you
and crashing quick ride-matching, need to do, even when
zero down time etc. and you are going slow you
down. save operational costs
while supporting your
need to build things with
scale.
net-zero ambitions?
What’s the best mantra
और सभी न्यूज़ पेपर मैगजीन प्राप्त करने के लिए सर्वप्रथम इस टेलीग्राम ग्रुप को ज्वाइन करें नीचे दिए लिंक पर क्लिक करके ज्वाइन टेलीग्राम

And to get all the news paper magazines, first join this Telegram group by clicking on the link given below and join Telegram

https://t.me/Backup_8890050582

1.The Hindu, 2.Deccan Chronicle, 3.Hans India, 4.Mint,

5.Business Line, 6.Business standard, 7.Hindusthan Times,
8.Economic Times, 9.Times of India, 10.Indian Express,
11.Financial Express, 12.Telangana Today, 13.New Indian
Express, 14.Pioneer, 15.The States Man, 16.The Tribune,
17.Free Press, 18.Avenue Mail, 19.Millenium Post, 20.Morning
India, 21.The Goan, 22.The Skin Times, 23.Western Times,
24.Daily World, 25.Asian Age _ Total papers We will update
in PDF format Every day morning 5.30am Below

Click here Telegram Channel Join

https://t.me/English_Newspaper_Banna
04 MONDAY, 17 JUNE 2024
NEW DELHI MARK TO MARKET LIVEMINT.COM

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

76992.77 0.39 23465.60 0.75 22214.30 2.07 71892.15 3.86 24571.65 1.26 46058.76 4.41 51199.99 5.07
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 (%)

5.32 5.33 5.62 5.96 7.40 11.54 10.09 22.85 6.29 8.61 10.60 19.80 11.06 22.17
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 (%)

9.19 21.77 10.78 25.11 17.08 38.11 38.45 65.73 15.01 31.36 27.15 64.22 22.37 59.94

m MINT SHORTS
US equity funds saw largest
Tata Motors puts pedal to metal
weekly outflow in 18 months Abhishek Mukherjee
In top gear Upward trajectory will find it increasingly tough to hold age says the above-mentioned head-
US equity funds observed heavy outflows in the seven abhishek.mukherjee@livemint.com on to its crown. Notably, Tata Motors’ winds could hurt future performance
Tata Motors' core business Both of Tata Motors' domestic
days through 12 June as some investors booked profits profitability has strengthened due to businesses saw significant margin
EV market share slipped from 87% in after Tata Motors delivered an

T
and exercised caution ahead of the Federal Reserve’s pol- ata Motors Ltd has laid out
icy decision. Investors ditched US equity funds worth a an aggressive road map for
net $21.93 billion during the week in their largest weekly the next few years, aiming to
net disposal since mid-December 2022, data from LSEG jack up its market share on
showed. Despite the Fed leaving interest rates the back of new launches
unchanged and tempering expectations for rate cuts this and sharper focus on electric vehicles
year, the S&P 500 and the Nasdaq Composite both (EVs), though more competition and
reached record closing highs for the third consecutive margin pressure may throw a spanner
session, buoyed by data suggesting inflation is cooling. in its plans.
Large-cap equity funds saw the most significant outflow, In the domestic passenger vehicles
with $14.94 billion leaving these funds, marking the larg- (PV) business, Tata Motors plans to
est weekly outflow since 21 December 2022. Outflows launch 5-6 new models, including four
also hit multi-cap, mid-cap, and small-cap funds, which EVs, over the next two years starting
saw $2.37 billion, $1.43 billion, and $816 million in net with Curvv in FY25. The management
withdrawals, respectively. REUTERS expects India’s PV industry to touch 6
million units by FY30, a compound
annual growth rate (CAGR) of 6%.
At its investor day event, the com-
pany said it plans to grow faster than
the industry by improving its addressa-
ble market to 80% from 53% led by new
car models (including mid-cycle refre-
shes) and powertrain options like EV
and compressed natural gas (CNG).
These steps are geared towards increa-
sing its market share from 14% now to
16% by FY27 and 18-20% by FY30.
Giving an update on the demerger of
its commercial vehicle (CV) and PV
better mix and solid demand
Auto free cash flow (in  crore)
30,000
20,000
10,000
FY15
0
FY24
-10,000
-20,000
business, Tata Motors said National
Company Law Tribunal (NCLT) sch-
eme has to be approved by the board.
A key focus area for the company is
the EV segment, where it commands a
market share of over 70%. It looks to
maintain leadership in the EV segment
and achieve a 30% penetration of EVs
expansion over the past few years
Ebitda margin (in %)
Commercial vehicles Passenger vehicles
12
8
4 higher operating leverage. to
0 cash cow Jaguar Land A key focus for the
FY21 FY24
Note: Ebitda is earnings before interest, tax,
depreciation and amortization
Source: Company data
PRANAY BHARDWAJ/MINT
in its portfolio by FY30. The manage-
ment also plans Ebitda breakeven by
FY26 driven by softening battery costs
and growing economies of scale.
Of course, there is often a wide gulf
between making plans and executing
them. For one, with rivals lining up
launches in the EV space, Tata Motors
FY22 to 84% in FY23 and 73% in FY24. extremely robust performance across
Same is the case with the overall PV key segments in FY24.
market, where the company itself In the domestic CV space, Tata Mot-
acknowledged “higher levels of com- ors sees volumes growing at 4-5%
petitive intensity”. CAGR during FY24-29 due to robust
Then there’s the question of mar- GDP growth, the government’s thrust
gins. Tata Motors aims to on infrastructure develop-
push its Ebitda margin to EXPANSION ment, and vehicle scrapp-
over 10% for its PV + EV PLANS age policy.
business in the medium Overall, it targets strong
term led by better mix and TATA Motors plans double-digit margins and
launch 5-6 new
models, including
healthy free cash flow gen-
But the buoyancy might be four EVs, over the eration. “While CV profita-
hard to replicate on a con- next two years bility is likely to remain
solidated level, thanks to its healthy, we continue to
monitor volume in the near
company is the EV
Rover (JLR)—which acco- segment, where it term as it has peaked com-
unted for about 70% of its commands a market pared to the FY19 levels. We
FY24 revenue. share of over 70% are impressed by Tata
Motilal Oswal Financial Motors’ robust EV portfo-
Services said in a report it lio, resulting in a better cus-
expects JLR margins to remain stable tomer profile than internal combustion
over FY24-26, given rising cost pres- engine vehicles,” Elara Capital analysts
sure as it invests in measures to said, adding they wait for details on JLR
increase demand, and EV ramp-up, at its 19 June analyst meet in UK.
which are likely to be margin-dilutive. That said, many analysts feel the
Even in the India business, both CV and stock’s strong run over the past year (up
PV businesses are seeing moderation in 74%) has capped sharp upsides in the
demand, the report said. The broker- near term.

Mark to Market writers do not have positions in the companies they have discussed here
The outperformance is driven in part by a rebound in
Chinese junk debt from record lows. BLOOMBERG

Junk bonds from Asia

continue to outperform
The global rate cut juggernaut is struggling to start
Money managers including T. Rowe Price Group Inc.
believe Asian junk dollar bonds have further to run after Bloomberg ciled in as a month-long open- Decisions elsewhere may public-speaking circuit after
outperforming almost everything else in debt markets feedback@livemint.com ing ceremony to a series of showcase the different stages of pencilling in just one rate cut for
this year. The notes have returned 9.8% year-to-date global rate cuts, may increas- global monetary cycles, with 2024.

C
compared with about 3% for global speculative peers and entral banks cagey about
losses across much of high-grade debt this year, Bloom- joining the global inter-
berg indexes show. The outperformance is driven in part est-rate cutting cycle
by a rebound in Chinese junk debt from record lows as may reveal themselves this
authorities in Beijing throw their weight behind steps to week with a quartet of decisions
pull the nation’s property market out of an unprece- in advanced economies.
dented slump. Junk bonds around the globe have been Days after the Federal
outperforming better-rated peers for most of this year. Reserve pared back projections
Stubbornly high inflation has held back central banks in for US monetary easing this
many countries—most notably in the US—from cutting year, policymakers from the UK
interest rates, even if falling Treasury yields this week to Australia are likely to signal
buoyed bond markets in general. Speculative-grade that they’re still not convinced
Asian dollar bonds in particular have rallied, after trailing enough about disinflation to
their global peers in the wake of record default on dollar start lowering borrowing costs
debt by Chinese property developers.“There continues themselves.
to be appeal in high yield, including in Asia,” said T. Rowe Such outcomes would reaf-
Price’s Leonard Kwan, a portfolio manager. BLOOMBERG firm how June, originally pen-
ingly turn out to be a wide-
spread display of hesitancy.
While Canada did deliver the
first such move of the Group of
Seven on 5 June, the European
Central Bank’s reduction in
borrowing costs a day later,
accompanied by a higher infla-
tion projection, showed limited
enthusiasm for further easing.
At the Bank of England on
Thursday, a looming election
and some lingering price pres-
sures are adding to the case to
wait at least until August before
cutting rates.
Peers in Australia and Nor-
Brazil and Paraguay expected to
keep borrowing costs on hold,
and Chile anticipated to slow
rate cuts.
Elsewhere, US retail sales, a
raft of Chinese data, and infla-
tion numbers from the UK and
Japan will be among highlights
for investors this week.
A week after a series of
Federal Reserve pared back projections for US monetary easing reports showed moderating US
this year. AP inflationary pressures, investors
will get a look at fresh figures on
way, also meeting this week, are may avoid a second reduction consumer demand, the housing
in no rush to do so either, while for now following its bold move market and industrial produc-
half of economists surveyed in March to ease before its tion.
reckon the Swiss National Bank neighbours. Fed officials also return to the
Policymakers speaking this
week include Thomas Barkin,
Susan Collins, Lisa Cook, Mary
Daly, Austan Goolsbee, Patrick
Harker, Neel Kashkari, Adriana
Kugler, Lorie Logan, Alberto
Musalem and John Williams.
Retail sales figures out Tues-
day are projected to show shop-
pers re-engaged somewhat in
May after pulling back a month
earlier, underscoring a resilient
consumer.
Separate data are seen show-
ing an increase in production at
the nation’s factories, mines and
utilities.

‘First 100 days crucial; green energy, semicon focus likely’ Emerging mkt bond
Dipti Sharma
dipti.sharma@livemint.com
undertakings (PSUs), infra-
structure, defence, electronics
exploded in popularity and are users or accounts to 155 mil-
currently the mutual fund lion. In my opinion, individu-
rally threatened
MUMBAI sector, and electric vehicles. industry’s hero product. Inve- als are currently investing
So, this government has taken stors using the SIP channel are directly in equity stocks, but Bloomberg

I
nvestors may need to be vig- numerous initiatives, includ- now reaping the rewards of with time, they will come to feedback@livemint.com
ilant and cautious given the ing production linked incen- compounding’s magic. understand the advantages of

concerns around elections
in the US, and ongoing geo-
political conflict, says R.K. Jha,
CEO & MD, LIC Mutual Fund.
The first hundred days of
India’s new government are
crucial, he said. Apart from the
infrastructure push, the gov-
ernment has promised solar
rooftops for 10 million house-
holds. He expects additional
initiatives in the green energy
T
tive (PLI) schemes and we are Apart from SIPs, what is mutual funds due to their pro- he balmy days of dovish
optimistic about the long-term the sentiment for active fessional fund management. monetary policy that
benefits of these events on equity funds? This will help them to achieve fuelled a rally in emerg-
development of infrastructure There are about 22 active their varied financial objec- ing-market bonds looks to be
and defence companies. equity-oriented funds at LIC tives. over as central banks across
Another factor is that con- MF. Active equity funds are Does that mean you see the developing world turn
sumers now prefer luxury or doing well overall, but outper- substantial inflows in the more hawkish.
premium products, which are forming the benchmark and mutual fund industry Returns from emerging-
considered discretionary by producing alpha may be chal- going ahead? market local-currency debt
the consumer. lenging. That is dependent MF AUM was approximately are trailing their dollar-de-
Besides, there are people upon the fund manager’s ₹39 trillion as on 22 November nominated peers by the most
staying in tier-2 and below cit- expertise in generating alpha. 2022, and it reached ₹50 tril- in two years as resurgent infla- Emerging market local bonds

sector and increased focus on
the semiconductor (semicon)
space. Edited excerpts:
What is your current asse-
ssment of the market?
Though the market is a bit
volatile at this point, those who
adopt a long-term perspective
are likely to see good returns
and achieve significant wealth
creation for themselves and
their families.
Additionally, after analyzing
the last eight elections since
1991, I have observed an inter-
esting pattern: there’s often
feverish speculation among
investors about the election
outcome. However, in the long
term, the market stabilizes
based on the financial per-
formance of companies, mac-
roeconomic factors, and turn-
ing points of sectors. Theref-
ore, it is important not to spe-
culate too much and instead
focus on long-term investing.
With the election verdict
settled, which sectors do
you think will benefit?
With policy continuity, this
government has given signifi-
cant support to public sector
‘
ies who seek better products. It Since you have been in lion in December 2023. tion has damped the prospect have handed investors a loss of
has been recently reported the government may annou- investments come from retail the industry Thus, in just 11 of further interest-rate cuts in about 1% this year. ISTOCKPHOTO
that people in rural areas are nce a few more initiatives par- investors, with the remaining for quite some months, it has Latin America and Eastern
purchasing sport utility vehi- ticularly in the green energy 5-10% consisting of other time, a n y Though the market surpassed ₹50 Europe. At the same time, poli- index. In contrast, a corre-
cles (SUVs), indicating that the space. The government is investor types like provident observations? is volatile at this trillion. There- cymakers in emerging Asia sponding gauge of dollar debt
purchase or consumption of already ramping up focus in fund (PF) trusts. Firstly, SIP point, those who fore, it is antici- have signalled an increasing has returned 2.5% since the
premium, luxury and valuable the semiconductor space. So These PF trusts need to assets under pated that this unwillingness to ease policy end of December.
products is increasing in the that sector can take off. maintain a certain rate of m a n a g e m e n t adopt a long-term will easily reach before the Federal Reserve. Amid the recent hawkish
rural segment. So that would Having said that there are a interest declared by Employ- (AUM) was perspective will around ₹100 “I definitely think the easy developments, Brazil’s infla-
be another area to watch out. few concerns such as elections ees’ Provident Fund Organisa- roughly ₹2-3 tril- see good returns. trillion in the money is gone,” said Robert tion topped forecasts in May,
How do you see the mar- in the US, and geo-political tion and may invest in both lion, while the next 4-5 years. Samson, a fund manager in while Mexico’s central bank
R.K. Jha
kets in the near term? conflict going on. So, we may fixed income and equity seg- entire AUM, say CEO & MD,
Any new Singapore at Nikko Asset Man- said last month sticky prices
When investing in the mar- need to be cautious. ments to achieve returns in FY19, was LIC Mutual Fund fund launches agement, which oversaw $240 pressures are a reason to be
kets, investors should look at What kind of investors is higher than the government- around ₹22 tril- this year? billion at the end of March. cautious about further easing.
the long term. The long term LIC MF inclined more declared rates. This strategy lion. SIP contri- This year, we “Duration hasn’t really paid Meanwhile, Peru’s policymak-
story of India is towards— aims to ensure consistent ret- bution was 10.73% of the have planned 3-4 new product anywhere with curve inver- ers unexpectedly halted rate
positive. In the
near term,
m INTERVIEW retail, HNIs,
or institu-
urns above the government-
declared rates, such as 8.15% or
industry’s total AUM in FY19. launches on the active equity
So as of April, the SIP AUM side. In ETFs, based on market
sion and the Fed higher for
longer.” The renewed hawk-
cuts last week amid concern
about consumer prices.
there may be tional? 8.25%, by investing in a mix of has increased to ₹11.26 trillion, feedback, we will do at least ishness is upending a bet In Europe, Hungary’s cen-
volatility but if one is investing It’s a blend of different fixed income and equity assets. 4-5 times more than what it one, if not two. which earlier this year was tral bank said it’s near the end
for the long term, this near- investor types. Out of our 39 In the schemes you’ve was. The total AUM of the Are you noticing a pref- hailed as a “once-in-a-genera- of its easing cycle, while the
term volatility may not be sig- schemes, we have 14 in the mentioned, where are you mutual fund (MF) industry is erence among customers tion” opportunity to buy Polish government’s wage
nificant. equity category, 6 in hybrid, 10 seeing highest traction? ₹57.26 trillion. This means for passive funds, equity- emerging-market local debt. plan may delay rate cuts. In
Hereon what are the in exchange traded funds The retail investing space is that SIP ratio which was 10% based funds, or debt? Not only has investor enthusi- Asia, Thailand’s policymakers
most important aspects to (ETF) and index funds, and 9 in seeing the most traction, par- has now risen to 20%. This Investors are more inclined asm been damped by the kept rates on hold last week
watch out for? fixed income debt funds ticularly Systematic Invest- indicates that Indians are towards active funds. As diminishing prospect of rate after inflation quickened,
The first hundred days are including overnight, liquid, ment Plans (SIP). In terms of beginning to understand the regards debt funds, we know cuts, but a supercharged dollar while their peers in Taiwan
one of the most important and low duration funds. fund size, LIC MF has around advantages of SIP and it does that last year in March, follow- is dragging down developing- boosted the reserve require-
when the new government In terms of investor distri- ₹19,000 crore in debt oriented not pinch one’s pay. ing the budget, the indexation nation currencies. ment ratio for banks in a form
will take new initiatives. Besi- bution, corporates primarily schemes and ₹14,000 crore in Secondly, since December, advantage was withdrawn. As Emerging-market local of policy tightening. Looming
des the infrastructure push, make up 90% of the invest- equity-oriented schemes out there have been more than 3 a result, interest of investors bonds have handed investors a over all is the Fed’s higher-for-
the government has promised ments in fixed income sche- of a total AUM of ₹33,000 million demat accounts and corporates to invest in loss of about 1% this year, after longer mantra that’s shrinking
10 million households solar mes, while on the equity side, crore as on 31 May 2024. opened each month, bringing debt schemes has come down rallying by more than 6% in the scope for policy easing in
rooftops. Moreover, I feel that approximately 90-95% of the Nevertheless, SIPs have the total number of demat to some extent. 2023, based on a Bloomberg emerging markets.
06 MONDAY, 17 JUNE 2024
NEW DELHI CORPORATE LIVEMINT.COM

FPIs slash
‘Private investments taking Big Retail asked to
bearish bets, declare pulse stock
set stage
for rally
off; consumption growing’ every two weeks
FROM PAGE 1
FROM PAGE 1
ers. This is to tell them to act
46,077.85 on 4 June to 50,002 Rise in global trade in FY25 will add impetus to consumption, says CII president Sanjiv Puri responsibly; this is not the best
on Friday. time to make a profit,” the offi-
The short positions were cial added.
closed out by FPIs by buying Gireesh Chandra Prasad (WTO) said in its April forecast that Though the headline infla-
them back at higher levels from gireesh.p@livemint.com world merchandise trade volume is pro- tion fell to 4.75% in May from
retail and high net worth inves- new delhi jected to grow 2.6% in 2024 and 3.3% in 4.83% in April, the lowest in a
tors, who held a record long 2025, following a larger-than-expected year, food inflation, which

index futures positions of
333,364 contracts on 4 June.
Retail/HNI currently hold
25,083 net long positions. They
have been transferring (selling)
their longs at a profit to FIIs.
In the cash market, FIIs have
been net sellers of ₹3064 crore
so far this month through 14
June. Mutual funds have net
purchased shares worth ₹10814
crore through 12 June as per
NSE data, while direct retail
investors (not using the MF
route) have net purchased
shares worth ₹17,829 crore.
While this buying helped the
rally, analysts believe that it was
primarily driven by short-cov-
ering since the election results
were announced.
“Those (FIIs) not confident of
the verdict had built huge
shorts to protect their portfolios
by 4 June,” said Rajesh Palviya,
SVP (head derivatives and tech-
nical research), Axis Securities.
After the results and forma-
tion of the NDA government,
they have been squaring off their
hedges, which is the prime
mover of the rally since 4 June
lows. They could even initiate
fresh longs, fuelling Nifty toward
testing 24,000, Palviya said.
Agrees Abhilash Pagaria,
head of quantitative and alter-
native research at Nuvama, who
expects the Nifty to test 24,000
on further short-covering by
FPIs and the sectoral Bank Nifty
to rise from the historic closing
high of 50,002 to 51,250 levels
within two weeks.
P
rivate investments are taking contraction of 1.2% in 2023. accounts for nearly 40% of the
off, and household consump- The supply chain transition and overall consumer price basket,
tion, which has crossed pre- energy transition taking place in the remained unchanged. It was
pandemic levels, is growing in world will also offer new opportunities 8.69% in May and 8.70% in
India, unlike in many other for India, Puri said. April. By comparison, it was 3% Food inflation stood at 8.69%
countries, according to Sanjiv Puri, “Even agriculture is an opportunity a year ago. Inflation in pulses in May and 8.70% in April. HT
president of the Confederation of Indian because the world is facing a food and specifically moved up to 17.1% in
Industry (CII) and chairman and manag- nutrition crisis. The Food and Agricul- May from 16.8% a month ago soon, this year too, it may push
ing director of consumer goods con- ture Organisation estimates that by and 6.6% a year ago. prices up further. The govern-
glomerate ITC Ltd. 2050, world food production has to go “Being a marketplace, we ment has taken a few measures
Puri added that with global trade up by 70%. And that has to happen with have proactively sensitized our to curtail prices and has been
expected to do much better in 2024-25, depleting natural resources. And on top sellers to adhere to government asking the industry to cooper-
India’s consumption and growth story of that, agriculture value chains are also guidelines and regulations,” a ate and not make a profit amid
will get further impetus. supposed to support biofuels,” said Puri, spokesperson of Flipkart said, such a situation,” an executive
Quoting data from the ministry of sta- adding that there is much potential in while queries sent to spokes- from a leading retail chain said
tistics, Puri said investments in fixed agriculture because India has more ara- people of the consumer affairs on the condition of anonymity.
assets like plant and machinery in nomi- ble land than many other countries. ministry, Reliance Retail, Kumar Rajagopalan, CEO
nal terms were at 23.8% of gross domes- When asked about whether the risk D-Mart, BigBasket, ITC Foods of Retailers’ Association of
tic product (GDP) in 2022-23 compared Sanjiv Puri, president of CII and chairman and MD of ITC Ltd. PTI appetite of businesses is in any way and Amazon remained unan- India, said he cannot comment
to 22.4% in the pre-pandemic year of affected by the Insolvency and Bank- swered till press time. on the matter.
2019-20. “It is in the right trajectory,” nesses that capacity utilisation is now invested ₹19.35 trillion in 2023-24 in ruptcy Code, which allows lenders to Online retailers Flipkart and The government has been
Puri said. above 75% and that improved cross-bor- fixed assets like plant and machinery, take over management control of com- Amazon operate suspecting hoard-
Gross fixed capital formation (GFCF) der trade this year will aid consumption compared to ₹11.13 trillion in 2012-13, panies defaulting on payments, Puri said under the market- Though May ing by the pulses
in current prices had grown from demand. “Whatever production capaci- while their share in overall GFCF has the quality of investments is also impor- place model, headline inflation trade for some
₹57.2 trillion in 2019-20 to ₹91 trillion ties were created all over the world in clawed up from 35.4% to 36.2% in the tant as investments cannot be sustaina- offering a platform fell to 4.75%, the time. “The impact
in 2023-24, according to the the pre-covid period also have to be same period, according to data available ble if its quality is not right. where various lowest in a year, of yellow pea
statistics ministry. absorbed. And there will always be a lag from the statistics ministry. Puri advocated moderate customs vendors can sell imports must be
food inflation
Puri also pointed out that duty rates with certain carve outs for their goods. Oth- reflected in chana
remained
retained earnings of Indian compa- GROWTH PLAN sensitive sectors where required for ers like BigBasket
unchanged
prices but that has
nies have gone up over the past dec- specific reasons. He also cautioned and ITC Foods not been the case.
ade, which suggests that more of INVESTMENT in GFCF in current CAPACITY utilization THE supply chain that because of the sluggishness in operate under the The market and
corporate profits are being fixed assets in prices had grown
nominal terms was at from ₹57.2 tn in
is above 75% and
improved trade will
transition and
energy transition will
global demand, there are concerns inventory model, the price trend
ploughed back into operations and 23.8% of GDP in FY23 FY20 to ₹91 tn aid consumption also offer India new emerging about possibility of dump- selling their own goods. indicate supply tightness of
investments. against 22.4% in FY20 in FY24 demand opportunities ing of goods into Indian market. “The problem is our reliance chana, resulting in lower pro-
Quoting a CII analysis of corpo- “We have to be cognizant of that,” on imports amid poor carry- curement by Nafed and higher
rate profitability data, Puri said Puri said, adding that there is sur- over stocks that typically cover purchase by private agencies.
retained profits of a panel of over 6,000 effect. But look at the enablers we have Reserve Bank of India governor Shak- plus capacity in China and dumping will six-seven months until the new Either there is a problem with
private sector firms have gone up from in place now—(lower) corporate tax rate, tikanta Das said on 7 June that invest- lead to unfair competition. season’s crop hits the market. production, or people in the
₹0.23 trillion in 2014-15 to ₹1.17 trillion ease of doing business, better logistics ment activity continues to gain traction The Indian industry is also in favour But in the ongoing season trade are manipulating the
in 2021-22, and further to ₹1.18 trillion in and production-linked incentives. After on the back of ongoing expansion in of a transparent political funding (2023-24 kharif and 2024-25 market,” an official said in
2022-23. Besides retained earnings, a long period, we are now seeing manu- non-food bank credit, and merchandise scheme, Puri said when in the context of rabi) carry-over stocks were for April. A Mint report at the time
businesses also tap debt and equity mar- facturing taking off. It is directionally, exports expanded in April with improv- the electoral bond scheme being struck only two-three months. Prices said officials plan to visit man-
kets to finance expansion. absolutely correct,” said Puri. ing global demand. down by the Supreme Court earlier this may stabilize if monsoon turns dis to crack down on hoarding.
Puri said quoting a CII survey of busi- Private non-financial corporations The World Trade Organization year as unconstitutional. out good. In case of erratic mon- puja.das@livemint.com

M&M eyes global cos India in talks with Equinor for oil reserve
for cell partnerships FROM PAGE 1 lighted that in addition to petrochemical company
India’s strategic petroleum Deepak Fertilisers.
Strategic petroleum reserve capacity, state-run oil The proposed LNG deal
PTI reserves are developed to store companies maintain storage with Equinor is part of India’s
feedback@livemint.com fossil fuel to be used in times of facilities for crude oil and strategy to fortify its LNG
New Delhi supply disruption or emer- petroleum products sufficient imports. Indian Oil Corp. (IOC)
gency, when normal supplies for 64.5 days of total net recently inked a long-term

M
ahindra Group is look- are impacted due to exigencies imports. This brings current LNG contract with France’s
ing for partnerships such as war. The idea behind total storage capacity for crude TotalEnergies to supply 1 mil-
with global players for allowing foreign companies to oil and petroleum products to lion metric tonnes per annum
local production of battery cells hold stock in the the strategic 74 days of total net imports. (mmtpa) for around 10 years.
Zepto is now gearing up to raise fresh funds ahead of a potential in order to cater to expected reserves is that they can store Equinor, meanwhile, is no There are plans to sign
public-market listing in 2026. increase in demand for electric oil for sale to domestic refin- stranger to India, another long-
vehicles in the future, accord- ers, as in the case of Adnoc. having partnered In Feb, Equinor term contract

Zepto eyes large ing to a top company executive.

In an interaction with PTI,
Mahindra Group managing
Mahindra Group MD and CEO
However, the Indian govern-
ment has the first right to the
oil in case of an emergency.
India has a crude storage
capacity of 5.3 million tonnes.AP
with state-run Oil signed a 15-year with Adnoc for a
and Natural Gas deal to supply LNG similar volume.
Corp. (ONGC) on to Indian fertilizer Indian Oil had

orders with dark director (MD) and chief execu-

tive officer (CEO) Anish Shah
said the company is looking at a
Anish Shah. MINT

vate equity partners as well

In January 2017, Adnoc had
joined Phase-I of India’s SPR
programme to store its crude
Padur. An additional 6.5 mil-
lion tonnes of strategic crude
oil reserves are under con-
carbon capture,
utilization and
storage (CCUS), firm Deepak
Fertilisers
previously signed
and petrochemical an agreement
with Adnoc for
2030 timeframe for the possi- because we will not put the in Mangalore SPR. In 2018, it struction in Chandikhol, Odi- offshore wind, the supply of 1.2
store expansion ble listing of its electric vehicle
(EV) arm Mahindra Electric
Automobile Ltd (MEAL).
entire capital.” The initiative, if
it materialises, would enable
local production of battery cells
signed another MoU with
ISPRL (Indian Strategic Petro-
leum Reserves Ltd) to explore
sha, and Padur, Karnataka.
These reserves are critical
for energy security, as evi-
and green hydro-
gen projects.
mmtpa of LNG
starting in 2026.
Equinor-backed Scatec ASA Petronet LNG extended its
FROM PAGE 1 widened 226% to ₹1,272 crore “One area that we continue in India, Shah said. the possibility of storing denced by India’s coordinated has also joined forces with contract with QatarEnergy
during the year, proving the to look at more closely is cell “...the only reason for us to Adnoc’s crude oil at ISPRL’s release of 5 million barrels of India’s Acme Group for a $6 LNG in February, securing a
brands, too, are benefiting challenges of running a high- manufacturing and that is do it is to indigenise in India. underground oil storage facil- crude oil in November 2021 billion green hydrogen and long-term deal for 7.5 million
from this strategy with quick burn business. something where there are var- Therefore, if we go down that ity at Padur in Karnataka, with other major consumers to green ammonia project in tonnes of LNG per annum.
commerce platforms becom- According to a report by ious considerations...if we feel path, it will be in India,” he said which has a 2.5 million tonne stabilize global prices. India Oman, which aims to supply Adnoc has also offered India
ing a key sales channel. HSBC Global Research from it’s essential for us, we will look when asked if the production capacity. had bought crude oil at $19 a emission-free fuel to Europe a stake in its upcoming LNG
Last month, Honasa Con- April, Zepto has steadily at a partnership for cell manu- facility would come up in India. India currently has a crude barrel in 2020 to fill up the and Asia. liquefaction terminal at
sumer, which owns the brand increased its quick-commerce facturing,” he stated. “We will On plans to list MEAL, Shah storage capacity of 5.3 million reserves, and in the process, In February, Equinor signed Ruwais, marking what could
Mamaearth, among others, market share to 28% at the cost look at a global technology said it is not going to happen in tonnes, distributed across Vis- saved $685.11 million. a 15-year agreement to supply be India’s first equity stake in
said during its investors’ call of Swiggy Instamart over the partner, and potentially at pri- the next three-five years. akhapatnam, Mangaluru, and A recent S&P report high- LNG to Indian fertilizer and an overseas LNG terminal.
that sales through quick com- past two years, while market
merce are outpacing tradi- leader Blinkit has grown its
tional e-commerce platforms. share to 40%.
Pankaj Makkar, managing Founded in 2021 by Aadit
director of venture investment Palicha and Kaivalya Vohra,
firm Bertelsmann India Invest- Zepto shot to fame after it
Hyundai may beat Korea discount with IPO in India
ments, reiterated the value of secured upwards of $150 mil-
these platforms and called lion in funding from marquee FROM PAGE 1 enhanced corporate value,” the to closing the market share gap turing plant, located at Irrun-
quick commerce investors such as report said. with Hyundai, is gunning for a gattukottai, Sriperumbudur,
an “evolution” of While Zepto’s Y Combinator ness, potentially increasing According to the draft pro- 20% market share by 2030. Tamil Nadu, was HMC’s first
e-commerce, in a FY24 revenue is and Nexus Ven- Hyundai’s overall market capi- spectus, HMIL’s revenue from The company in its prospec- global integrated manufactur-
recent interview not available yet, ture Partners talization,” the executive said operations grew from tus said it will focus on increas- ing plant outside Korea, with a
with Mint. its FY23 revenue within months of on the condition of anonymity. ₹40,972.25 crore in 2020-21 to ing its EV market share, main- production capacity of 824,000
The financials inception. It The carmaker aims to list on ₹60,307.58 crore in 2022-23, taining capacity utilization at units as of 31 March 2024. Its
grew 14 times to
of leading players attained unicorn Indian exchanges ahead of the up nearly 47% over two years over 90% balancing domestic newly-acquired Talegaon fac-
show the speed of ₹2,024 cr, up from status last year festive season. on the back of robust demand sales and exports, tory near Pune
growth of the ₹142 cr a year ago after bagging In a March report, South and market penetration. At the as well as deepen- Hyundai’s will add a further
quick commerce $200 million in Korean broking firm Meritz same time, profit more than ing its localization corporate value up to 250,000 in
business. Market Series E funding Securities said Hyundai’s cor- doubled from ₹1,881.16 crore to and local supplier enhancement capacity, with the
leader Blinkit’s FY24 operat- led by US private equity inves- porate value enhancement ₹4,709.25 crore, as the car- network in India. plan will greatly first phase of the
ing revenue stood at Rs 2,301 tor StepStone Group, joined plan will greatly determine the maker began selling more pre- “We are follow- plant expected to
determine the
crore, as per announcements by Goodwater Capital and direction of its stock price mium SUVs, besides achieving Hyundai aims to list in Indian ahead of the festive season. REUTERS ing a transition be operational in
made as part of parent existing investors such as movement in the first half of better operational efficiency strategy, having direction of its the second half of
Zomato’s Q4FY24 results. In Nexus Venture Partners and the year. “Hyundai Motor is and cost management. Its net market share, led in revenue Maruti Suzuki have similar divi- started with the stock price 2025-26.
2022-23, revenues reportedly Glade Brook Capital. expected to present a new plan worth increased from with ₹1,06,451 crore and profit dend payouts, significantly launch of high- Hyundai’s IPO
stood at around ₹724 crore. Zepto is now gearing up to to improve shareholder value ₹15,311.34 crore in 2020-21 to at ₹8,049 crore in 2022-23, also higher than Tata Motors, indi- end, premium EVs in one of the
While Zepto’s 2023-24 rev- raise fresh funds ahead of a in early June, utilizing ₹20,054.82 crore in 2022-23, demonstrating the highest cating strong cash flows and and plan to transition towards world’s fastest-growing auto-
enue is not available yet, its potential public-market listing increased cash flow for poten- with return on net worth earnings per share of ₹266.28. shareholder returns. the mass markets as the EV motive markets will allow it to
2022-23 revenue grew 14 in 2026. The firm is said to tial share buybacks or cancella- improving from 12.29% in Tata Motors, while having a Interestingly, the IPO also market and ecosystem scales up enhance its market value in
times to ₹2,024 crore, up from have received commitments tions, which would further 2020-21 to 23.48% in 2022-23, revenue of ₹88,484 crore, comes at a time Hyundai’s clos- in India. We aim to launch four response to the South Korean
₹142 crore a year ago, accord- upwards of $1 billion for its boost (return on equity). This the prospectus said. reports lower profitability with est competitor Tata Motors, EV models in future including government encouraging firms
ing to data sourced from the pre-IPO round, a third person increase in RoE would lead to a In India’s car market, Maruti a profit of ₹2,514 crore and a whose emphasis on EVs and a Creta EV in the last quarter of to pursue foreign listings to
portal of the ministry of corpo- aware of the matter said. higher fair price-to-book ratio, Suzuki India, the country’s higher debt burden at ₹22,728 strong push in the SUV segment 2024-25,” it said. boost valuations and return
rate affairs. However, losses sowmya.r@livemint.com strengthening the case for largest carmaker at over 40% crore in 2022-23. HMIL and have significantly contributed Hyundai's Chennai manufac- more cash to shareholders.
LIVEMINT.COM CORPORATE MONDAY, 17 JUNE 2024
NEW DELHI 07

InterGlobe plans to open 12 Deals value dips in past week,

but volume nearly doubles
Miiro hotels across Europe K. Amoghavarsha &
Malvika Maloo
PE/VC deals Skye Air Trampoline
 Mount Judi Ventures,  Matrix Partners
Companies raise $274 mn Chiratae Ventures,
last week
India, WaterBridge
Venture Catalyst
BENGALURU Deal value ($ mn) Indigrid
Lead Investor(s) Technologies

P
rivate equity (PE) and 50  Cactus Venture
Aviation firm will start this year with Paris, Barcelona, London, Vienna and stretch into 2025 venture capital (VC) deal- Sabine Hospital and 4
5
Partners
making activity last week Research Centre
saw a slight dip in deal value,  CX Partner 65 5 Arthan Finance
38 Battery
Varuni Khosla boutique lifestyle brand Miiro targets while deal volume nearly dou- Smart  Incofin India
6 Progress
Candi Solar Fund,
varuni.k@livemint.com the 30-plus “frequent and evolved” trav- bled on a week-on-week basis.  Norfund  LeapFrog
NEW DELHI ellers to the big capital cities of Europe. PE/VC investment last week Investments 9 Michael and Susan
36 Dell Foundation.
They will be priced upwards of €350 slipped below the $300 million Indkal
18 12

I
nterGlobe Enterprises Pvt. Ltd is set a night or $375 a night. Miiro Hotel Le mark, after witnessing two con-  Aries Opportunities 13 Innoviti
Fund
to launch around a dozen hotels in Grand Hôtel Cayré, Paris, will open first secutive weeks wherein start- Foxtale  Alumni Ventures
Europe under its new hotel brand in July followed by Miiro Hotel Borneta, ups raised more than $300 mil-  Panthera
Miiro. Barcelona, in August. This will be fol- lion. Indian startups last week Growth Partners Ethereal Machines Renee Cosmetics
The company is set to enter the lowed by Miiro Hotel Templeton Gar- raised $274 million across 25 Source: VCCEdge,  Peak XV Partners,  Evolvence India,
VCCircle, media reports Steadview Capital Edelweiss Group
European hospitality market beginning den, London, in 2025. deals, on the back of multiple
mid-July in Paris, followed by Barcelona “Our move to acquire hotels in mid-size transactions led by a SATISH KUMAR/MINT

in August. The entry-level luxury lifes- Europe was bold because that continent global impact investor’s bet in mother and child care pro- equity firm Panthera Growth
tyle hotel brand will continue back-to- is one of the most mature and sophisti- an e-mobility company. In con- vider, as reported by VCCircle. Partners and participation
back launches into 2025 with London cated hotel markets in the world, partic- trast, startups managed to raise Last week also saw multiple from existing backers Matrix
and Vienna, said Neena Gupta, chief ularly London and Paris. We are looking $342 million across 13 deals the deals within the $10-40 mill- Partners India and Kae Capital.
executive officer (CEO) of Miiro. to compete with the best in a very diffi- week before. ion range. Most notably, Candi Beauty care products maker
Gupta is also executive director of cult market. Being owners and opera- The largest deal recorded Solar, a Swiss renewable ene- Renee Cosmetics Pvt. Ltd
group strategy and international hospi- tors of our own properties will give us an last week was Gurugram-based rgy company raised $38 mill- raised $12 million in its Series B
tality at InterGlobe Enterprises, the advantage,” she said. electric mobility solutions ion in a Series C funding round round from existing investors
holding company of InterGlobe Avia- By 2018, the company had acquired startup Battery Smart’s $65 from a consortium led by the Evolvence India and Edelweiss
tion Ltd, which is the listed company Neena Gupta, CEO of Miiro and executive director of group strategy and its first hotel, at Schiphol airport in million Series B funding round, Norwegian development Group. The fundraise values
that runs IndiGo Airlines. InterGlobe international hospitality at InterGlobe Enterprises. Amsterdam, with 417 rooms. Later that which was led by finance institu- Renee between ₹1,200 crore
Enterprises owns the hospitality busi- year, it acquired another asset, the 278- LeapFrog Invest- The largest tion Norfund. and ₹1,400 crore. In terms of
ness as well. The hotel properties are each in Austria and the Czech Republic, hospitality businesses and other devel- room Reichshof Hotel in Hamburg. ments. The round deal recorded Norfund was the small deals i.e. deals that fall
housed under its fully owned entity in and one hotel each in France, Germany, oping businesses. In India, InterGlobe Hotels, a partner- also saw participa- last week was joined by Kyuden within the range of $0.1-10 mil-
the UK which began acquiring hospital- Hungary, Romania, Spain and the UK. InterGlobe Enterprises said in an ship of InterGlobe Enterprises and tion from new Gurugram-based I n t e r n a t i o n a l lion range, last week saw nearly
ity assets in 2018. Today it owns over While Gupta did not share the acquisi- exchange filing on 11 June that “the pro- French hospitality group Accor, has investors MUFG Corp., a member 65% of the deals fall within the
Battery Smart’s
2,000 rooms including a 240-room tion cost, it was reported in the media ceeds will be utilised for scaling up IGE’s about 7,000 rooms across its 30 hotels. Bank and Pana- of Kyuden Group bracket, in terms of deal vol-
hotel in Melbourne, Australia. that K+K was first purchased by hospitality and other businesses The company was set up in 2004 sonic along with $65 million Series and Paris-ba-sed ume, while the quantum of two
The company is transition- American hotel management it is incubating, as well as for to develop a network of bud- existing backers B funding round impact investor deals remained undisclosed.
ing three upcoming hotels company Highgate Hotels general corporate pur- get hotels in India, Nepal, Ecosystem Integ- STOA Infra & The mergers and acquisi-
to their new brand. These
hotels in 10 countries, $375
The price per night
and Goldman Sachs as a poses.” On being asked
joint venture in 2015 for how this money will be 7,000
Rooms InterGlobe
Sri Lanka and Bangla-
desh. The objective was to
rity Fund (EIF), Energy. Indkal tions remained buoyant as four
Blume Ventures and British Technologies secu-red $36 such transactions were
including the upcoming $300-350 million, and put back into the UK establish a strong budget International Investment (BII). million in a Series A funding recorded last week, while the
three in Paris, Barcelona under the new later sold to InterGlobe in company, a spokesperson Hotels has across hotel brand to serve the Following Battery Smart’s fun- round led by Aries Opportuni- week before that saw five deals
and London, have been hotel brand Miiro 2019 for about $450 mil- said this was the only state- 30 hotels in India significant number of bud- draising was Sabine Hospital & ties Fund. The round also saw being recorded. Singapore-
operational since their pur- lion. InterGlobe has since ment it had on the sale of get airline travellers by Research Centre which raised participation from other inves- based private equity investor
chase in 2018 and 2019. sold the hotel in Bucharest, shares. InterGlobe’s hospital- Indigo. Accor Asia Pacific $50 million in a funding round tors, whose names were not GIC sold its remaining 25%
The idea behind the venture Romania. ity business is one of the few orga- (AAPC) and InterGlobe Enterprises from Indian PE firm CX Part- disclosed. The cosmetics space ownership interest in IRB
was “to purchase high-yield assets in Earlier this week, Rahul Bhatia, group nized Indian hotel ownership busi- had investments split 60:40 for real ners-led consortium. also saw two key investments Infrastructure Trust to Spanish
iconic locations.” In 2019, it ramped up managing director of InterGlobe Enter- nesses abroad. Others include a handful estate and 70:30 for operations. This ini- The PE firm has acquired a last week starting with D2C infrastructure company Ferro-
its business by acquiring 10 hotels of prises, sold a 2% stake in InterGlobe Avi- of hotels owned by the Hindujas and tiative made Accor one of the few inter- 53% stake at a valuation of skincare brand Foxtale’s $18 vial.
Austrian hotel company K+K Hotels ation in a block trade for ₹3,360 crore. Ambanis in the UK. national hotel companies to directly about $100 million in the Kera- million Series B funding round k.amoghavarsha@live-
Elisabeta. This company had two hotels The money will be used to expand its Gupta said the affordable luxury or invest in hotel construction in the region. la-based fertility services and led by Singapore-based private mint.com

Pension funds piled into private

equity. Now they can’t get out.
Heather Gillers
feedback@livemint.com

P
rivate-equity and pen-
sion funds seemed like a
match made in heaven.
U.S. companies and states
handed over control of some
worker retirement savings. In
exchange, they got a promise
of high returns after a dec-
ade—and often received
healthy cash payouts in the
years before that.
Now the honeymoon is
over. The payouts have dried
up, creating an expensive
problem for investment man-
agers overseeing the savings of
workers retired from big cor-
porations and state and city
governments.
To keep benefit checks com-
ing on time, those managers
are unloading investments on
the cheap or turning to bor-
rowing—costly measures that
eat into returns. California’s
worker pension, the nation’s
largest, will be paying more
money into its private-equity
portfolio than it receives from
those investments for eight
years in a row. The engine
maker Cummins took a 4.4%
loss in its U.K. pension last year,
in large part because it sold pri-
vate assets at a discount.
It is the latest cash crunch to
befall retirement funds that
have piled into hard-to-sell
investments in search of high
returns, and spotlights the
risks as Wall Street is trying to
sell those investments to
wealthy households.
“You’ve got a lot more
money out and going out than
is coming back, and I think
that’s causing a lot of angst,”
said Allen Waldrop , Alaska
Permanent Fund Corp. pri-
vate-equity director.
U.S. companies and state
and local governments man-
age around $5 trillion in pen-
sion money. Large public pen-
sion funds have an average 14%
of their assets in private equity,
while large corporate pensions
have almost 13% in private
equity and other illiquid assets
such as private loans and infra-
structure, according to data
from Boston College and
JPMorgan Chase . Much of the
money was committed when
low bond yields were dragging
down retirement portfolios.
Unable to sell without denting returns, private-equity managers are keeping workers’ retirement
savings locked up for longer—sometimes past the promised maturity date.
But as private equity has
grown, its lead over traditional
stocks has narrowed. And dur-
ing the decade before the invest-
ments pay out, it can be hard to
trust interim estimates provided
by fee-seeking managers.
Pensions, sovereign-wealth
funds, university endowments
and other institutions often
promise their money to pri-
vate-equity managers for a dec-
ade or so. Over that time, the
managers draw down the cash
and use it to buy companies,
then overhaul and sell them.
Those sales and the resulting
cash distributions to investors
have slowed markedly as high
interest rates have made buy-
ing and
owning
companies
more com-
plicated and expensive.
Unable to sell without dent-
ing returns, private-equity
managers are keeping work-
ers’ retirement savings locked
up for longer—sometimes past
the promised maturity date.
Nearly half of private-equity
investors surveyed by the
investment firm Coller Capital
earlier this year said they had
money tied up in so-called
zombie funds —private-equity
funds that didn’t pay out on
the expected timetable, leav-
ing investors in limbo.
So pension funds are selling
private-equity fund stakes sec-
ondhand—often taking a
financial hit in the process.
Secondary-market buyers last
year paid an average of 85% of
the value the assets were
assigned three to six months
before the sale, according to
Jefferies Financial Group. Sec-
ondhand sales by private-eq-
uity investors increased 7% to
$60 billion last year.
Columbus, Ind.-based
Cummins sold private assets
because its U.K. pension sud-
denly needed cash after deriv-
atives bets backfired and many
U.K. pensions had to post large
amounts of collateral. A Cum-
mins spokeswoman said the
plan is confident in its strategy.
The Oakland, Calif.-based
healthcare provider and non-
profit insurer Kaiser Perma-
nente has sold $6.5 billion in
private assets in the past two
years and is
preparing
to sell
another
$3.5 billion after an aggressive
push into private markets a
few years ago. Anton Orlich,
who oversaw much of that
push, is now supervising an
expansion of the $502 billion
California Public Employees’
Retirement System’s private-
equity portfolio to 17% of
assets.
Orlich told Calpers’s board
Monday that the cash
demands of the private-equity
portfolio have dwarfed pay-
outs for four years and would
continue to do so for about
another four years. Calpers is
investing extra money up front
as a part of a strategy that will
reduce sudden requests for
cash later, Orlich said.
Some pension funds are
borrowing to access cash. Both
GUJARAT URJA VIKAS NIGAM LIMITED
CIN U40109GJ2004SGC045195
(Wholly-owned company of Govt. of Gujarat)
ISO 9001 -2015 Certified Company
Sardar Patel Vidyut Bhavan, Racecourse,
Vadodara 390007
PBX: (0265) 2310582-86, www.guvnl.com
NOTICE INVITING TENDER
Gujarat Urja Vikas Nigam Limited (GUVNL) intends to invite
bids for procurement of 750 MW power on long term basis
through Tariff Based Competitive Bidding process as per
Ministry of Power Guidelines dated 06.03.2019 for procure-
ISTOCKPHOTO ment of electricity from Thermal Station to be set up on
DBFOO Basis and sourcing lignite from lignite mine of GMDC
Calpers and the $333 billion at Valia, Gujarat. The draft of Bid Documents (RFQ, RFP &
pension serving California PSA) shall be available for stakeholder's consultation at
teachers have approved plans www.mstcecommerce.com & www.guvnl.com. The stake-
holders may submit their queries / comments on the draft ten-
to take out loans equivalent to
der documents to GUVNL on or before 30.06.2024.
5% and 10% of fund holdings,
Date: 17/06/2024 General Manager (Comm.)
respectively.
The Alaska Permanent
Fund Corp. has received cash
from a different kind of bor-
rowing: private-equity manag-
ers making payouts that come
not from investment gains but
from loans they have taken out
to appease cash-starved pen-
sions and other investors. That Connecting you to
is frustrating for the invest-
ment chief, Marcus Frampton.
He estimated that his fund, Global Insights!
which invests mineral revenue
and other state money, could
borrow on its own at lower
cost. So far, this practice
doesn’t appear to be wide- Discover comprehensive
spread.
The $80 billion Alaska fund
has been getting more cash by the Leaders in Journalism
from its private-equity pro-
gram than it has put in. But it
still missed out on around half
a percent worth of stock
gains—or about $40 million—
over the past year after private
equity tied up more cash than
expected, causing the fund to
run a smaller than planned
stock portfolio, Frampton told
the fund’s board last month.
Board members decided to
reduce real-estate and cash
holdings instead. They also
voted to scrap a goal set a year
ago to reduce the share of
assets in private equity .
Laura Kreutzer and Rod
James contributed to this
article.
© 2024 DOW JONES & CO. INC.
08 MONDAY, 17 JUNE 2024
NEW DELHI GLOBAL LIVEMINT.COM

Weight-loss drug Ozempic

Investors fear long stretch fuels hunt for smaller clothes
of calm in markets can’t last Suzanne Kapner
feedback@livemint.com

A
pparel retailers are
discovering that
weight loss is their
gain.
With stock indexes at record highs, market volatility has been exceptionally low While blockbuster drugs
like Ozempic that lead to sig-
nificant weight loss have
Jack Pitcher dented demand for diet plans
feedback@livemint.com and caused food companies to
prepare for people eating less,

M
arkets are unusually clothing sellers are finding
calm—and that’s mak- that millions of slimmed-
ing Wall Street nervous. down Americans want to buy
Stocks have been on a new clothes.
steady climb, with the The newly svelte aren’t just
S&P 500 up 14% nearly halfway restocking their wardrobes,
through 2024 and closing at 29 records many are also gravitating to
along the way. One-day index changes more body-hugging shapes Retailers see nascent sales boost fueled by people switching to
of 1% in either direction have been rare, and risqué designs, according smaller sizes. MINT
and there has been just one 2% move, to industry executives and
the fewest since 2017 through this shoppers. treat diabetes—are effective thing has gone down by at
point in the year. Some brands are respond- or extremely effective in help- least one size.”
The Cboe Volatility Index, or VIX, ing by replacing zippers with ing them shed pounds. Sales of the three largest
dropped below 12 last week, a nearly adjustable corsets and adding Weight-loss drugs don’t sizes of women’s button-
five-year low. Known as Wall Street’s more sheer looks. work for everyone and the down shirts fell 10.9% in the
fear gauge, the index tracks the price of The nascent downsizing is cost can sometimes exceed first three months of 2024
options that can be used to hedge happening across brands and $1,000 a month, limiting the compared with the same
against stock-market downturns and types of garments. market. period in 2022 at a dozen
measures how much traders expect Industry executives said The full price isn’t always brands, according to Impact
prices to fluctuate. that they can’t be certain covered by insurance. More- Analytics, which helps retail-
Investors look sanguine, and ana- weight-loss medicine is the over, people struggle to keep ers manage their inventory
lysts say they have good reason. cause, but added that the shift the weight off once they stop and size allocations.
The economy has remained stronger is unlike anything they have using the drugs. Sales of those same button-
than almost anyone predicted after the seen. It is also an about-face Still, some companies down shirts in the three
Federal Reserve began raising interest Stocks are on a steady climb, with the S&P 500 up 14% nearly halfway through 2024 and closing at 29 records along the way. AP from recent years, when expect the market for these smallest sizes grew 12.1% over
rates. many retailers rushed to add drugs will be big enough that that period. Impact Analytics
Corporate profits are rising again. are convinced the economy has staved what’s going on under the surface,” one. larger sizes to accommodate they are shifting course. WW analyzed purchases in physi-
Inflation cooled more than expected in off a recession , Kelly said. Sosnick said. “The markets have been “We have a lower range of monetary Americans’ growing girth. International , formerly cal stores located on Manhat-
last week’s consumer prices report, and This week, investors await retail driven much more by greed recently policy outcomes compared to a year or About 5% of Lafayette 148’s known as Weight Watchers, tan’s Upper East Side.
Fed officials signaled that they expect sales data, the S&P survey of purchas- than by fear. The problem is that the two ago. That’s the biggest driver of the customers are buying new acquired a subscription ser- It focused its research on
to cut benchmark rates later this year. ing managers and speeches from half a longer that goes on, the more fragile it calm right now,” said Bob Elliott, chief outfits because they have lost vice that offers telehealth vis- this area because it has the
Add in the artificial intelligence dozen Fed officials. Traders will closely becomes.” executive of asset manager Unlimited. weight, often replacing their its with doctors who can pre- highest concentration of indi-
boom that’s driving huge gains for mar- parse their comments for clues about Low trading volumes are another “We’re now talking about the differ- size 12 clothes with size 6 or 8, scribe drugs like Ozempic. viduals in New York City tak-
ket darlings Apple and Nvidia , and the central bank’s path forward. potentially troubling sign. The SPDR ence between 2 and 3% inflation, not 2 according to Deirdre Quinn , Nestlé is introducing a new ing these drugs specifically
investors have plenty to cheer. Since the bull market kicked off in S&P 500 ETF Trust, the largest S&P and 7%.” the brand’s chief executive. food line this year designed for weight loss, according to
But history shows that periods of late 2022, the S&P 500’s gains have 500 exchange-traded fund, has posted It is hard to pinpoint what will break The benefit is twofold; in for people taking weight-loss market research firm Trilliant
extreme market calm rarely last. The been driven by a handful of megacap its 14 slowest days of the year in May stocks out of their lull. Analysts note addition to boosting sales, medication. Health.
VIX traded in line with current levels tech stocks. After widening earlier this and June, based on the number of that, unlike the last time the market Lafayette 148 is saving money Clothing com- A similar trend
for most of 2005 to 2007, year, the number of stocks shares changing hands, according to was this concentrated in the early because smaller sizes use less panies could use 6% of U.S. adults played out for
before surging above 80 The problem with leading the market’s FactSet. Low volumes can suggest a 2000s, the biggest companies today fabric, Quinn said. a boost. Apparel say they have women’s dresses
during the 2008 financial a strong economy advance has narrowed lack of conviction among investors. are profitable and have strong balance More customers of clothing sales fell 4% in tried injectable and sweaters, as
crisis. and calm markets again lately, alarming “There’s two things you’d like to see sheets. And com- rental com- the 12 months weight loss drugs well as men’s
Part of the problem with is that they create some investors. in a big market advance: solid breadth pared with the years pany Rent that ended in polo shirts,
to slim down,
a strong economy and The S&P 500 would be and solid volume. We don’t have either leading up to the the Runway April compared sweatshirts and
a situation where according to a
calm markets is that they down over the past 30 right now,” Sosnick said. 2008 financial cri- are switch- with the same T-shirts, accord-
create an environment in investors let their days, for example, if all the The bond market helps explain why sis, companies and individuals now ing to smaller sizes than at any period a year ear- survey ing to Impact
which investors let their guard down stocks were given the stock trading appears so calm. With no hold much less debt. time in the past 15 years, said lier, according to Analytics.
guard down and turn to same status. Instead, the recession imminent and inflation down War in Ukraine and the Middle East Jennifer Hyman , co-founder market research Prashant
risker, more speculative market-weighted index is from a year ago, the benchmark 10-year have heightened geopolitical risks, and CEO. These customers firm Circana, as people give Agrawal , Impact Analytics’
investments in their hunt for fat up 4%. The 10 biggest stocks recently Treasury yield is near its midpoint for though for now investors are taking are also showing more of a priority to their spending on founder and CEO, said it
returns. represented 36.8% of the index’s total the year at 4.2%. solace in the fact that the conflicts willingness to experiment necessities. wasn’t possible to know if the
“On a really calm day, it’s easy to value, the highest since September If bond yields move significantly haven’t escalated further. Other risks with different styles such as Coming out of the Covid-19 size changes resulted from
blow bubbles. They can grow to 2000, according to FactSet. higher or lower, stock valuations would include a sudden economic slowdown cutouts and other body-bar- pandemic, Amarra, which people losing weight or a shift
humongous sizes,” said David Kelly, A narrow rally leaves the market vul- likely move as well. or a jump in inflation. But for many ing features. “When you are sells evening gowns and other in clothing styles, but added
chief global strategist at J.P. Morgan nerable if a few of the biggest compa- The S&P 500 is currently trading at investors, the unknown is more fright- more comfortable in your formal wear in 800 retailers that such a pronounced shift
Asset Management. “When the wind nies can’t meet the lofty expectations 21 times its expected earnings over the ening. skin, you are more willing to in the U.S., Canada and Aus- is unusual. “It’s not something
picks up, they pop.” priced into their valuations, said Steve next 12 months, above its 10-year aver- “It’s usually some exogenous shock try edgier looks,” she said. tralia, saw increased demand we’ve seen before,” he said.
Investors are continuing to double Sosnick , chief strategist at Interactive age of 18.1. With multiples historically that breaks us out. That’s why they call For Maggie Rezek, getting for larger sizes. Now, that Some executives are wor-
down on bets that are working, particu- Brokers. high, some investors are nervous that a it a black swan,” said Quincy Krosby, dressed used to be about hid- trend has reversed. ried that the shift could
larly large-cap U.S. stocks in the high- “If you’re very top heavy, it papers positive surprise in markets might have chief global strategist at LPL Financial. ing her extra weight in over- “Over the past year, our reduce demand for plus-size
flying technology sector, because they over a lot of other issues and can mask less impact on stocks than a negative ©2024 DOW JONES & CO. INC. size shirts and baggy pants. retailers have been telling us clothes.
Since she lost 60 pounds on they need smaller sizes,” said “I’m trying to figure out
semaglutide, the active ingre- Abhi Madan, Amarra’s what we have to worry about
dient in Ozempic, the co-founder and creative in the future,” said Doug

Apple gives banks a bigger bite of payment features 32-year-old, who handles
marketing for a beauty salon,
has splurged on a new war-
director. Amarra, which is Wood , the chief executive of
based in Freehold, N.J., has clothing retailer Tommy
added sizes as small as 000. Bahama, noting that as more
drobe. He says he is also selling more people lose weight it could
Telis Demos vider to many banks, will be part the credit card—banks’ bread- rate ways. But then Apple Now, her staples consist of sizes in the 0-8 range and hurt sales of its “Big & Tall”
feedback@livemint.com of the initial rollout, Apple said. and-butter retail product, gen- would lose out on many trans- crop tops and jean shorts. She fewer in the plus-size range of collection designed for very
One of the threats to banks’ erating transaction fees and actions, and banks would battle has traded in her sneakers for 18-24. large men.

A
pple is sometimes called
a disrupter to banks. But
relationships in finan-
cial technology are much more
complicated than that.
Announcements out of the
tech company’s latest product
showcase included enhance-
ments to
Apple Pay,
the digital
w a l l e t
whose size and stature has rap-
idly expanded in recent years .
They included a feature that
will enable banks to offer buy
now, pay later installment pay-
ments via their cards loaded
into users’ Apple Pay wallets. In
the U.S., Citigroup , Synchrony
Financial and Apple Pay issuers
using Fiserv , a software pro-
credit-card businesses are buy
now, pay later options offered
by other lenders, including
Apple itself. So for banks, it is a
win to be able to offer custom-
ers the option to convert a card
purchase into an installment-
payment option right at the
point of
purchase.
Apple
also is intro-
ducing the ability to pay for a
purchase with card rewards,
adding that much more value
to those points, and giving
banks another opportunity to
win a transaction. Discover
Financial Services , Synchrony
and Fiserv’s issuers will be the
initial participants, Apple said.
To further expand Apple
Cards might be able to touch
more transactions with
changes to Apple Pay. REUTERS
Pay’s reach, Apple also will ena-
ble payments via third-party
browsers with a code that can
be scanned with a phone—
meaning that a card in a user’s
iPhone digital wallet can effec-
tively make payments across
the web, too.
All of this continues to bring
interest on revolving balan-
ces—to more forms of e-com-
merce retail sale. This helps
banks keep their customer
spending growing and com-
pete with upstart payment
types.Of course, there is a price
for things like this. The Wall
Street Journal has reported
that banks in the U.S. agreed to
pay Apple 0.15% of a purchase
made with a credit card via
Apple Pay. And non-monetar-
ily, it gives Apple a big seat at
the table with customers and
their financial lives.
This is how things go in the
world of “fintech.” Few devel-
opments are a straightforward
win or loss for traditional play-
ers or newer entrants. Apple
and banks could go their sepa-
to push people toward friendly
wallets. Smaller banks in par-
ticular likely value the ability
for their cards to be on the same
playing field as the big banks’
cards in Apple Pay. Smaller
banks are often at a tech disad-
vantage to their giant peers.
It will be interesting to see
how consumers sort out these
options. Apple will also con-
tinue to have its own Apple Pay
Later installment option , and it
announced that U.S. users will
be able to apply for loans
through buy now, pay later
provider Affirm when they pay
with Apple Pay.
Disruption comes in many
forms. And it is rarely a one-way
street.
©2024 DOW JONES & CO. INC.
kitten heels. She even docu-
ments her outfits on social
media.
“Before, I was insecure
about my body,” said Rezek,
who lives in Indianapolis.
“Now, I feel like I fit better in
clothes. That gives me the
confidence to dress up and be
more stylish.”
Some 15.5 million people,
or 6% of U.S. adults, say they
have tried injectable weight
loss drugs to slim down,
according to a survey of more
than 5,500 Americans con-
ducted in March by polling
company Gallup.
Nearly three-quarters of
current users said the drugs—
a class known as GLP-1 that
were originally developed to
Madan said the shift is Jillian Sterba went from a
changing the way Amarra size 6 to a size 10 after the
designs dresses. It is replacing birth of her child. When the
zippers with lace-up corsets, weight didn’t come off with
which can more easily accom- diet and exercise, she started
modate shifting weights injections of semaglutide in
because the laces can be tight- October. Since then, Sterba,
ened or loosened. It is also who is 36 and lives in Austin,
adding more sheer side panels has lost 35 pounds. She is now
that give a figure-hugging a size 4. “Almost half my
look. clothes are not wearable,” she
AllStar Logo, which sells said.
polo shirts, fleece jackets and She bought new jeans, tops,
other gear to large companies, bras and underwear. “I had
has seen demand for its larg- been wearing flowy tops
est sizes fall by half over the before but now I’m wearing
past year, according to fitted shirts,” she said. Still,
Edmond Moss , its sales Sterba said she is keeping
director. 80% of her old clothes just in
“We used to sell a lot of case she gains back the
fleece jackets in extra, extra weight.
large,” Moss said. “Now every- ©2024 DOW JONES & CO. INC.

The UK’s muddy fields are the latest climate threat to food security
Bloomberg tated fields for growing grains economy. “broadly stable” but wet port scheme for farmers in revenue from crops that we
feedback@livemint like wheat and barley, which For crops like potatoes, “we weather had “potentially sig- April, but for many of them the should be harvesting,” he says
the UK usually produces to lev- are seeing shrinkflation in the nificant impacts” on the relief won’t help with this year’s from inside the grain store

F
rom tractors stuck in
muddy paddocks to raw
sewage washing up from
clogged waterways, extreme
rain and flooding have wreaked
havoc on British farmers this
year. The soggy and turbulent
weather — exacerbated by cli-
mate change — has stunted
their ability to provide home-
grown crops for bread, beer
and nearly every grocery aisle.
Britain has seen its sixth wet-
test spring since records began
in 1836, according to the Met
Office. The outcome has devas-
els that can mostly meet
domestic needs. The unseason-
able conditions have also
delayed supplies of British
strawberries and even led to the
death of livestock.
As a result, the UK will
become 8% less self-sufficient
for food this year — meaning it
will need to ramp up imports,
according to the Energy and
Climate Intelligence Unit think
tank. The potential for this add-
ing to food price inflation is a
reminder of the growing threat
climate change poses to the UK
supermarkets as they try and
keep pricing the same,” says
Harry Campbell, a fruit and
vegetable analyst at commod-
ity data firm Mintec. Campbell
says procurement companies
are looking elsewhere to shore
up supplies of impacted crops
and using contracts to mitigate
risk, but their goal is to “make a
profit and so it will eventually
be passed down to the con-
sumer if the situation is not
improved with the weather”.
After volatile commodity
prices in the wake of Russia’s
domestic production of some
crops. Around 60% of the food
eaten by Britons is grown
domestically, a number that the
government is desperately
seeking to boost.
The UK’s ruling Conserva-
tive party, which is polling dis-
mally ahead of a general elec-
Extreme rain, flooding have wreaked havoc on British farmers. AP tion in July, has been looking to
avoid more bad news and gain
invasion of Ukraine fueled a The Department for Environ- support among voters —
cost-of-living crisis across the ment, Food & Rural Affairs last including those in agricultural
world, countries have begun to month introduced the UK’s communities. Prime Minister
assess how to limit their expo- first ever food security index, Rishi Sunak launched a £50
sure to global supply chains. finding food supply was million ($64 million) flood sup-
crops.
Farmer Henry Ward was
only able to begin work on his
farm in Lincoln, England on 4
June—after its fields were
destroyed by floods that hit
twice in six months.
Ward’s Short Ferry Farm
usually supplies wheat for
breadmaker Warburtons and
spring barley to brewers Coors
and Budweiser. Ward missed
out on planting in March
because the fields didn’t dry in
time. “We are then losing out
on over a £100,000 worth of
whose supplies are slowly run-
ning out.
Across the 200 acres of Short
Ferry Farm, only one survived
the floodwater: a green patch in
a field with a cracked surface
that looks as though it experi-
enced a drought. Ironically,
however, the thick crust was
created by water pressure. It
smells rotten, and Ward com-
pares its appearance to a crème
brûlée. Underneath there is a
gooey, oxygen-starved mess
that will struggle to grow crops
without cultivation.
LIVEMINT.COM NEWS WRAP MONDAY, 17 JUNE 2024
NEW DELHI 09

NEWS
$2.5-3 bn
THE AMOUNT Hyundai Motor India is
$50 mn
THE ESTIMATED annual revenue Wipro
26.6mt
THE QUANTITY of wheat procured by
₹3,064 cr
THE NET sales made by foreign portfolio
1,215
THE NUMBER of tourists stranded in
IN expected to raise in its upcoming IPO, could generate from its IT outsourcing state-run Food Corporation of India for investors in Indian equities this month as Sikkim’s Mangan district due to disruption
NUMBERS valuing the company at $25-30 billion. It
surpasses LIC’s $2.46 billion issue in 2022.
contract with London-based Standard
Chartered in the next three years
the main rabi season—28.7% lower than
its target of 37.3 million tonnes
of 14 June, after offloading ₹5,586 crore
of equities in May
on road and in communication following
the landslides on 12 and 13 June

HOWINDIALIVES.COM

Mcap of 5 top firms NATURE’S WRATH, NATURAL SOLUTION PwC India expects
jumps by ₹85,582 cr upswing in markets

F P
ive of the top-10 most valued firms together wC India anticipates an upswing in the
added ₹85,582.21 crore in market valuation India markets, especially in small to mid-
last week, with LIC emerging as the biggest size M&A (merger and acquisition)
gainer. Last week, Sensex climbed 299.41 points or transactions and growth fundings driven by
0.39 per cent. The 30-share barometer hit its all- increasing investors’ confidence.
time high of 77,145.46 on 13 June. The year 2023 witnessed the emergence of a
While Reliance Industries, HDFC Bank, nuanced M&A landscape, with investors
Bharti Airtel, SBI and LIC were gainers, TCS, showing interests in diverse strategies and
ICICI Bank, Infosys, Hindustan Unilever and larger-scale ventures, even amid an overall
ITC faced erosion from their market valuation. decrease in PE investment, said Sanjeev
The five firms together lost ₹84,704.81 crore Krishan, chairperson, PwC in India.
from market valuation. The valuation of LIC While PE deals were higher in volume,
jumped ₹46,425.48 crore to ₹6,74,877.25 crore, strategic deals dominated the top deals—and
the most among the top 10 firms. The market domestic deals with group-level consolidations
capitalisation (mcap) of HDFC rallied ₹18,639.61 were a prominent theme. The first quarter of
crore to ₹12,14,965.13 crore. Reliance Industries 2024 marked a resurgence in deal value and
added ₹10,216.41 crore, taking its valuation to volume. As per a PwC report, top 10 deals in
₹19,98,957.88 crore. The mcap of SBI climbed 2023 include JV buyouts, strategic investments,
₹9,192.35 crore to ₹7,49,845.89 crore and that of PE buyouts, and stock mergers, and contributed
Bharti Airtel went up by ₹1,108.36 crore to to 21% of the total deal value. PTI
₹8,11,524.37 crore. PTI

Villagers use a temporary bamboo bridge to cross a river after the reinforced cement concrete bridge over it was washed away by floodwaters, in
Assam’s Baksa district on Sunday. PTI

Of the total import in April, non-coking coal

Ukraine’s territorial integrity Essar eyes clean energy as a key pillar for its new
phase of growth. BLOOMBERG
import stood at 17.40mt.

India’s coal import

BLOOOMBERG

basis of peace, echo 80 nations Essar to invest in

green hydrogen
rises 13% in April
E
ssar Group plans to invest ₹30,000 crore

I
ndia’s coal import rose by 13.2 per cent to
26.10 million tonne (mt) in April 2024 as
buyers took fresh positions amid early onset
of summer. The country had imported 23.05mt
of coal in the year-ago period, according to data
compiled by B2B e-commerce company
mjunction services ltd. This comes amid coal
and mines minister G. Kishan Reddy stating that
over the next four years in setting up a
President Zelenskyy has hailed the ‘first steps toward peace’ at the Swiss conference green hydrogen plant at Jamnagar in
Gujarat as the metals-to-infrastructure
conglomerate eyes clean energy as a key pillar
AP and the United Arab Emirates—which were repre- participants agreed to the final document “shows for its new phase of growth.
feedback@livemint.com sented by foreign ministers or lower-level what diplomacy can achieve”. Ukrainian President The conglomerate is looking to decarbonise
Obburgen envoys—were among those that did not sign onto Volodymyr Zelenskyy hailed the “first steps toward its oil refinery in the UK, construct a green steel
the final document, which focused on issues of peace” at the meeting, and said the joint communi- plant in Saudi Arabia, and build an LNG and

E
India should increase domestic production of
the fossil fuel and reduce coal imports. “India’s
coal and coke imports in April 2024 through the
major and non-major ports increased by 13.2%
over April 2023,” the data showed.
Of the total import in April, non-coking coal
import stood at 17.40mt against 15.15mt in the
year-ago month. Coking coal import was 4.97mt
against 4.77mt.
“There was an increase in volumes...Going
ahead, there may be continued demand from
both the power and non-regulated sectors due
to pre-monsoon restocking,” mjunction
managing director (MD) & chief exectuive
officer (CEO) Vinaya Varma said. Coal imports in
April were up by 8.93% as against March when
imports stood at 23.96mt. PTI
ighty countries jointly called Sunday for
the “territorial integrity” of Ukraine to be
the basis for any peace agreement to end
Russia’s two-year war, though some key
developing nations at a Swiss conference
did not join in.
The joint communique capped a two-day con-
ference at the Bürgenstock resort in Switzerland
marked by the absence of Russia, which was not
invited, but that many attendees hoped could join
in on a roadmap to peace.
About 100 delegations, mostly Western coun-
tries but also some key developing nations, were on
hand for the conference — and experts were on
watch to see how and if at all they might line up
behind the outcome document.
Participants India, Saudi Arabia, South Africa
nuclear safety, food security and the exchange of que remains “open for accession by everyone who electric ecosystem to decarbonise long-haul
prisoners. respects the UN Charter.” heavy trucks, Prashant Ruia, director of Essar
Brazil, an Analysts say the Capital, which manages the group’s portfolio of
“observer” country, two-day conference investments, said. It is also considering an
did not sign on but Analysts say the meeting will likely will likely have little entry into mining of critical minerals, mainly
Turkiye—which has have little concrete impact toward concrete impact used in electric vehicle batteries, solar panels
sought to an inter- toward ending the and wind-turbine magnets. Essar Future
mediary between ending the war because the country war because the Energy plans to develop 1 gigawatt of hydrogen
Russia and leading it, Russia, was not invited country leading and capacity along with associated green molecules
Ukraine— did. continuing it, Rus- capacity of 1 million tonne per annum in
The final docu- sia, was not invited — Jamnagar over the next four years, he said. PTI
ment said the UN Charter and “respect for territo- for now. Russia’s key ally, China, which did not
rial integrity and sovereignty … can and will serve attend, and Brazil have jointly sought to plot alter-
as a basis for achieving a comprehensive, just and native routes toward peace. The meeting also
lasting peace in Ukraine.” Viola Amherd, the Swiss endeavoured to return a spotlight to the war at a
president who hosted the event, told the final news time when conflict in Gaza, national elections and
Godrej plans to join
conference that the fact that the “great majority” of other concerns have seized global attention.
billion-dollar club

G
odrej Appliances expects to become a
US lawmakers to visit India to strengthen ties, meet Dalai Lama ‘Feasibility study on billion-dollar company by the end of this
fiscal, led by a 30% growth in topline, a
in India-Lanka deal’ senior company executive said.

A
bipartisan delegation of US lawmakers, led by House Foreign Affairs The company is “very optimistic” about the
Committee chairman Michael McCaul, will visit India to strengthen short-term and mid-term outlook of the

S
bilateral ties and meet exiled Tibetan leader the Dalai Lama. ri Lankan president Ranil Wickremesinghe domestic market, during which it will launch
The delegation including former House speaker Nancy Pelosi will meet said on Sunday that the feasibility study on a new products and has plans to launch around 50
with the 14th Dalai Lama, Indian officials and representatives of US proposal to establish land connectivity with new models across categories in FY25, its
businesses in the country, according to a statement issued by the Foreign India is in its final stages. business head & executive vice president Kamal
Affairs Committee Friday, which does not say when they will visit. Local Wickremesinghe said that the preliminary Nandi. Godrej Appliances, a unit of Godrej &
media reported the trip begins this week. work of the feasibility study was over and the Boyce, recorded 60% overall growth in the first
“Tibetans are a democracy-loving people who wish to practice their final phase would be completed soon. quarter, led by an unprecedented demand for
religion freely. This visit should highlight the bipartisan support in the U.S. This proposal and the prospect of a power air-conditioners.
Congress for Tibet to have a say in their own future,” the statement quoted grid connection between the two nations are “We have registered over 60% growth in Q1
McCaul as saying. likely to be discussed during the visit of and expect to close the quarter at 50-60%
Tibet has been an autonomous region of China since the People’s external affairs minister S. Jaishankar to Lanka growth. While demand is slower in the south
Liberation Army entered the country in 1950, leading to the eventual flight of this week. Wickremesinghe said a commercial and west, north and east are improving. Overall,
the Dalai Lama to India nine years later. China opposes anyone who voices The delegation will be led by House Foreign Affairs Committee venture to sell the excess renewable energy to we expect to close the quarter with over 50%
support for Tibet and the Tibetan spiritual leader. BLOOMBERG chairman Michael McCaul. REUTERS India would also be discussed. PTI growth,” Nandi said. PTI

Top CEOs are flocking to Trump again in bid to shape agenda

FROM PAGE 1
wants educated foreigners
and foreign-born college stu-
dents in the U.S. to be given
the chance to stay in the
country. He said he didn’t
want the U.S. to leave the
North Atlantic Treaty Organi-
zation but that every member
nation should pay their fair
share. Nations who are mem-
bers of the alliance pledge to
spend 2% of their gross
domestic product on defense.
Despite some CEO grum-
bling, businesses have thrived
under Biden. Stocks are near
records, corporate profits are
up, inflation has come down
and the economy has so far
managed a soft landing
despite aggressive interest-
rate increases from the Fed-
eral Reserve. Industries such
energy that appeared to be at
risk from Biden’s policies
have done well.
Much of Corporate Amer-
ica had been dreadingJ a Bid-
en-Trump rematch. For
months, deep-pocketed fin-
anciers cast about for alterna-
tives to the two men. Their
favored candidates included
Nikki Haley . Some even
floated long-shot candidacies
such as Secretary of Com-
merce Gina Raimondo , who
they said spoke their language
given her business back-
ground. (Hedge funder-
turned-social crusader Bill
Ackman unsuccessfully urged
Dimon himself to run for
president.)
Trump’s team was nervous
that the CEOs might not be
too welcoming, in part
because of the former presi-
dent’s recent conviction in his
hush-money trial , according
to a person familiar with the
matter. But many of those
who don’t like Trump or some
of the things he has done or
said appeared to be willing to
give Trump a second look, the
person said.
The Trump campaign dis-
puted the characterization
that his team was nervous,
saying that Trump, as a busi-
nessman himself, was com-
fortable in the setting.
“President Trump was
warmly received by everyone
in the room and was com-
mended for his policy propos-
Joe Biden, US President. AP
als on deregulation and tax
cuts,” said spokesman Steven
Cheung .
Many executives say a
Trump second term could be
more palatable with the right
vice president by his side.
South Carolina Sen. Tim
Scott, Florida Sen. Marco
Rubio , Ohio Sen. J.D. Vance
and other potential vice-pres-
idential picks have been pop-
ular with finance types. North
Dakota Gov. Doug Burgum , a
successful businessman and
former presidential candi-
date, is also in the VP mix.
Vance, a former venture capi-
talist who was backed by
Republican donor Peter Thiel
, has made the rounds
recently in Silicon Valley.
Some executives may have
their own careers in mind.
Hedge-fund manager John
Paulson and investor Scott
Bessent are among those
whose names have been
floated for Treasury secre-
tary, The Wall Street Journal
has reported . vocal. For many, their support shifting towards Trump.”
The meeting attracted some springs more from frustration Trump has increasingly
of the nation’s top business with the business climate won back holdouts who
executives, including Apple from the Biden presidency hadn’t until recently contrib-
CEO Tim Cook and Walmart rather than a raging enthusi- uted to his campaign, includ-
CEO Doug McMillon , accord- asm for another Trump term. ing Miriam Adelson , a long-
ing to some of the Among the time GOP donor with her late
people. Despite some most visible is husband Sheldon, who plans
The Biden CEO grumbling, Elon Musk , the to support a pro-Trump
administration businesses have CEO of Tesla and super PAC.
has consulted thrived under owner of X, who Donors from the financial
McMillon on a
Biden. Stocks are has privately sector have given more than
range of topics been speaking $56 million to Trump’s cam-
such as inflation near records, with Trump and paign and outside groups,
and supply-chain profits are up other backers of according to data compiled by
issues, according the former presi- the Center for Responsive
to people famil- dent, the Journal Politics. Those donors, who
iar with the matter. has reported. come from banks, investment
Trump had some backers The two have discussed a firms and insurance compa-
among Silicon Valley’s lead- possible advisory role for Musk nies, gave about $40 million
ers when he ran before. This should Trump reclaim the to Biden’s campaign and
time the group appears to be White House. On June 5, Musk related fundraising arms.
more widespread and more tweeted: “The SF Bay Area is ©2024 DOW JONES & CO. INC.
10 MONDAY, 17 JUNE 2024
NEW DELHI LONG STORY LIVEMINT.COM

BELLY UP: HOW HEATWAVES

are killing fish
Climate change has led to an alarming increase in marine and freshwater fish mortality

Puja Das Asia Network on Dams, Rivers and Peo-

puja.das@livemint.com ple (SANDRP), a network of organiza-
NEW DELHI tions working on issues related to rivers,
communities and large-scale water

T
hese days, Mahendra Vinayak infrastructure like dams, put together
Desai, a resident of Chimbel, on known mass fish death incidents that had
the outskirts of Goa’s capital taken place in rivers and wetlands across
Panaji, has to wake up earlier India last year. Most of the fish deaths
than usual to purchase seafood, happened in February, April, May, July
a staple in much of coastal India. At 5 am, and November.
the retired lecturer gets a call from a fish- “The salinity and temperature
monger, his long-time supplier, giving mostly affect fisheries in terms of
him details of the day’s catch and the pri- movement of fish and species
ces. The fishmonger, however, isn’t from variation when they come for
his neighbourhood—he’s a good distance migration or breeding,” says
away. “I’d rather travel 9km to get fresh Asha Giriyan, a fellow at The
fish than purchase the frozen ones from Energy and Resources Insti-
the lady in my locality,” says the 68-year- tute (TERI).
old harmonium accompanist and moti- Rising temperatures
vational speaker. can also cause a shift in
More than 2,000km away, Juthika the distribution of
Biswas, a 60-year-old resident of fish species, as they
Kolkata, is also finding it harder to migrate in search of
buy fresh seafood. Although Ben- cooler water. This, in
galis are partial to freshwater fish, turn, affects the timing
marine fish, such as pomfret and of spawning and reproduc-
mackerel, have become an important tion. With warmer tempera-
part of their diet. But while they have tures, breeding behaviour and spawning
become popular, these fish are also nearly ₹3,500. mint locations change.
becoming scarce. “We love to eat Pomfret. India’s fish exports, SHORT “Breeding takes place after the arrival of
As we cannot completely stop having it, meanwhile, have also STORY monsoon,” explains Johnson. “Once the
we have reduced the quantity of Pomfret declined in value terms. In monsoon is set and the weather becomes
as well as prawns,” says Biswas. 2023-24, they dropped to cool, breeding happens. Due to a lack of
In much of West Bengal and parts of the $7.5 billion from around $8 WHAT cool water, if the monsoon fails, fish try to
east and west coast, placing such limits on billion in 2022-23, according to move towards the sea. If there are hurdles,
fish would have been unthinkable only a the Seafood Exporters Associa- Heatwaves have taken a toll they don’t survive, causing substantial
few months ago. But a series of heat- tion of India. on marine and freshwater life. mortality. This year, I expect the mortality
waves—unprecedented in their severity, Experts say they lower oxygen rate to go up to 10% overall if the heat is
length and frequency—have been cours- BUSINESS IMPACT levels in water bodies and beyond tolerance.”
ing through the country, killing the vul-
nerable, setting off forest fires, and taking T he rise in marine and freshwater fish
mortality is an alarming development
cause diseases. This raises fish
mortality, affecting reproduction. INFLATIONARY EFFECT
maximum temperatures up to nearly 50 for India, which accounts for as much as
degrees Celsius. 8% of global production and is the third
While the official human toll as of 1 June largest fish and aquaculture producer AND
F or fish eaters, the heatwaves have
made it a challenge to get hold of
fresh fish without breaking the bank.
stood at 87, the tragedy did not end there. after China and Indonesia. People in Goa say that the price of
Life underwater, too, perished before The fisheries sector plays a crucial role The rise in fish mortality is marine fish has almost doubled in the
fishermen had a chance to extinguish it. in the national economy and is one of the alarming for India, which is the past three months. “We cannot imagine
Inland water bodies have been hit hard by key contributors to the country’s foreign world’s third largest fish and a meal without fish,” says retired lecturer
the rising temperatures. An alarming 2-5% exchange earnings. In 2022-23, India pro- aquaculture producer. The Desai. He used to spend around ₹700-
of fish in lakes and ponds may have been duced 17.5mt of marine and inland fish, of fisheries sector is one of the key 800 daily on buying fish. “But these days
wiped out, according to Trivesh Mahekar, which rivers accounted for about 75%. contributors to forex earnings. I hardly buy any.”
a fisheries scientist at the Indian Council In 2021-22, the country exported The price of seer in Panaji has shot up to
of Agricultural Research-Central Coastal 1.36mt of fish—mainly seafood—worth ₹1,000 per kg from ₹600 in March.
Agricultural Research Institute (ICAR- $7.76 billion, an all-time high in value NOW Bangda (Indian mackerel), sardine and
CCAR), Goa. terms, as per the government’s latest data. queenfish, which are rarely available in
“Warmer water temperatures can India primarily exports frozen shrimp, The scarcity of certain the market these days, sell for ₹400-450
decrease dissolved oxygen levels and fish, cuttlefish, squid, and dried, live and varieties of fish has led to a a kg, against ₹100-300 three months ago,
increase the incidence of harmful algal chilled items. spike in their prices. Ordering says Desai. And lobster prices have dou-
blooms, both of which can affect fish Marine and inland fish account for over 1kg of seer (surmai) on a bled to ₹2,000 per kg from ₹1,000 over
health and survival rates in natural as well 10% of total exports and 20% of agricul- seafood e-tailer can set you the same period.
as farmed environments,” says Mahekar. tural exports and contribute around 1% of back by nearly ₹3,500. In Bengaluru, the price of a large
In general, for farmed, freshwater or the GDP (gross domestic product) and cleaned seer on meat and seafood site
brackish water fish to thrive, the ideal 5.23% of the agricultural GVA (gross value Licious is ₹1,710 for half a kg. White pom-
water level should be 1-1.5 metres, says added) of the country. media reports. fret (small) sells at ₹899 for 400gm,
Mahekar. But this year water levels in In terms of production, Andhra Pradesh Fisheries experts and scientists attrib- while mackerel (medium) retails at ₹249
the ponds that he is studying have is India’s leader, followed by West Bengal, ute the phenomenon to prolonged dry for 400gm and sardine (medium) at ₹419
shrunk below 1 metre. “I have observed Karnataka, Odisha and Gujarat. In the spells and severe heat waves in southern per 650gm.
that the water level shrank 67-75 centi- financial year 2022, Andhra Pradesh pro- India, which they say can worsen water In Delhi, the price of a 400gm pack of
metres due to intolerable temperatures, duced 4.22mt of fish. pollution. The prognosis is bleak, they seer on Freshtohome, another meat and
resulting in mortality. This year, fish “Domestic production is at least 15% add, noting that fish in lakes, ponds and seafood site, is ₹984. A 300gm of black
mortality in my ponds could be around down in April-June of the current finan- reservoirs are more vulnerable to heat- pomfret, which is inferior to its white
2-5%. If the temperature keeps rising cial year compared to last year. We waves and their mortality rate may counterpart in taste, is priced at ₹886.
like this every year, the mortality burden expect better production from the Sep- worsen if temperatures keep rising in the And a half kg curry cut of barracuda
is bound to go up.” tember quarter. However, I don’t think coming years. retails at ₹622.
It isn’t just ponds and lakes. Since we will reach last year’s production as “For Mettur dam, built across the Among Indian states, consumption is
October 2023, marine heatwaves—unu- far as aquaculture or sea-caught shrimp Kaveri River, the state fisheries depart- highest in Karnataka, Maharashtra,
sually high ocean tem- and fish in Andhra Pra- ment came and took Assam, Uttar Pradesh,
peratures—have led to desh are concerned,” samples. People were West Bengal, Odisha,
extensive bleaching of In fiscal year 2022-23, says G. Pavan Kumar, suspecting it was due to In FY24, the value of India’s Bihar, Kerala and Tamil
corals in the Lakshad- India produced 17.5 million national president of some poison or the fish exports dropped to Nadu. Annual per capita
weep Sea, depriving the Seafood Exporters effluent mixed with the consumption stood at
them of essential nutri- tonnes of marine and Association of India. water and they were $7.5 billion, from around 6.31kg in 2020-21. It has
ents and compromising inland fish, of which “When you look at investigating in that $8 billion in FY23, according doubled to 13kg in
their survival. This, in West Bengal and Odi- direction,” says Jeyaraj 2022-23, according to
turn, is threatening rivers accounted for sha, the stocks of cul- Antony Johnson, senior to the Seafood Exporters the latest data from the
marine ecosystems, tured shrimp and fish scientist at the Wildlife National Council of
livelihoods and biodi- about 75%. are also down on year,” Institute of India (WII), Association of India. Applied Economic
versity, according to a he adds. Among other an institution into wild- Research. The per capita
statement issued by the ICAR-Central factors, Kumar blames an increase in life research and management. “But that figure may seem small but there’s wide
Marine Fisheries Research Institute, a feed, seed and other input costs. That, was not the case. As an ecologist, I can variation between regions and within
leading tropical marine fisheries too, may be down to the torrid summer. tell you that it was because of heatwaves states, too.
research body, in May. According to Mahekar, increased tem- followed by the enrichment of microbial Lower production has pushed the
Experts say prolonged heat waves lower peratures can affect the metabolism of biomass (which consumes more dis- price of marine fish up while crabs have
oxygen levels in water bodies and also fish, potentially accelerating growth solved oxygen, critical for fish),” says vanished from the market across the
cause diseases. These two effects together rates but also increasing their food Johnson. west coast in the past few weeks, says
not only increase mortality among fish but requirements. This, in turn, can result in A 2022 study by the US-based Partha Mukherjee, a wholesaler who
also impact reproduction. higher feed costs. Association for the Sciences of Lim- sources fish from Kolkata, Surat and
However, a top official of the fisheries nology and Oceanography pre- Andhra Pradesh and sells at Hiranandani
ministry, speaking to Mint on condition BELLY UP dicted a six-fold increase in the fre- Estate market in Thane, Maharashtra.
of anonymity, said that there has been no
decline in output so far. “As of now, we E xperts knew they had a problem
when fish began floating up dead
haven’t received any reports of fish pro- in the rivers and reservoirs of
quency of “mass fish die-offs” “Even if some crabs are available, we can
across the world by 2,100 due to offer them for not less than ₹300-400
summerkills (mortalities associ- per kg,” says Mukherjee. He attributed
duction getting hurt, especially due to southern India in significant ated with warm temperature), the price rise to the season’s scant rains.
heatwaves,” the official asserted. Queries numbers. Thousands washed winterkills (associated with cold “The availability of sea fish will improve
seeking an official response from the up on the shores of the Periyar temperatures) and infectious from mid-August once the seasonal ban
fisheries department remained unan- River in Kerala. Similarly, a pathogens. In the lakes of the is over,” Mukherjee adds. The annual
swered at the time of going to press. To large number of fish, each northern hemisphere, sci- seasonal fishing ban, during the spawn-
be sure, government data show produc- weighing less than half a kilo- entists have observed ing period, is aimed at sustaining marine
tion has been rising steadily since the gram, were found dead on that the warming of life. On the West Coast, the ban starts in
1980s. More recently, it went up from the banks of the Mettur water increases the June, with the monsoon, and runs until
12.7 million tonnes (mt) in 2017-18 to Dam in Tamil Nadu on 15 frequency of the end of July.
17.5mt in 2022-23. May. Many more fish mass The good news is that after the severe
While production data for 2023-24 is floated up in the m o r t a l i t y heat waves over nearly two months, tem-
expected this year and 2024-25 will only Krishnagiri Reservoir events. peratures in Andhra Pradesh, Tamil Nadu,
be available next year, experts believe the Project dam, also in C l o s e r Telangana and Karnataka have started
scarcity of certain varieties of fish has led Tamil Nadu, due to home, on cooling down with some rain due to the
to a spike in their prices in the domestic oxygen deple- World Fish- onset of the monsoon over Kerala on 31
market. Ordering 1kg of seer (king mack- tion on 19 May, eries Day May. Whether this will bring fish fries and
erel/kingfish/surmai) on a seafood according to 2023, the curries back on the dinner table remains
TARUN KUMAR SAHU/MINT
e-tailer, for instance, can set you back by v a r i o u s S o u t h to be seen.
LIVEMINT.COM MINT MONEY MONDAY, 17 JUNE 2024
NEW DELHI 11

Axis MF says recovery visible, but POWER

POINT
growth style dilution is a concern A J AY R O T T I

We welcome your views and comments at

mintmoney@livemint.com
Neil Borate & Jash Kriplani
neil.b@livemint.com
‘Looking to get Axis MF Term of the RBI’S NEW OVERSEAS
I
t’s been a little over two years back in the reckoning’ day: Growth
since Axis Mutual Fund (Axis MF)
faced a front-running scandal.
Since then, the fund house has
What changes are you making at the investing INVESTMENT RULES:
portfolio-level?
undertaken a significant restruc-
turing of its senior management to
set its house in order and improve the
 Concentration to top-10 stocks reduced
from 65% to 43%.
Growth style of investing
looks at stocks of companies
A GAMECHANGER
performance of its schemes. It got a that are expected to grow
Have you increased stock coverage?

new chief executive officer (CEO)
and chief investment officer about a
year back, as well as made changes in
its fund management team. How-
ever, experts such as Arun Kumar of
FundsIndia are not convinced. They
see the addition of stocks like State
Bank of India and DLF as a dilution of
three growth styles. FundsIndia
removed Axis MF from its model
portfolio on this ground since the
portfolio is a combination of styles.
In this interview with Mint, B.
Gopkumar, the CEO of Axis MF, dis-
cusses the fund house’s efforts to
turn its story around. Edited excerpts:
When can we see a turnaround in
Axis MF’s schemes?
Over the last three or four quar-
ters, we have restructured our port-
folios. Our three- and six-month per-
formance is looking much better.
Much better across categories and
not just one category. If you look at
our largest four funds, which
includes large-cap fund, growth
opportunities fund, equity-linked
savings scheme (ELSS) and the
focused fund, these are now typically
in the first and second quartile over
the three- and six-month periods.
These were in the fourth quartile for
a long period of time. In most of the
other fund categories, today we are in
the third quartile. Our belief is that in
the next two quarters, we should be
doing much better, and we aim to be
in the first quartile over time.
Can you elaborate on what
changes have been made at the
portfolio level?
A year back, same time, our con-
centration was 65% to top-10 stocks.
Today, we are at 43%. We added
20-25% more stocks in our portfo-
lios. Our top four funds is what peo-
ple talk about, but if you look at our
business cycle fund and manufactur- We didn’t change our growth style in its category.
ing fund, they are doing extremely because our advisers had gone ahead So, what’s the size of your fund alkar (manages large-cap fund, ELSS,
well. Last October, we called out and sold on the growth style, and management team now?
manufacturing as an opportunity, there is no opportunity for us to
T
their earnings at above-aver- he Reserve Bank of India (RBI) issued a circular on 7 June
 We have 20 analysts now. So, our stock age growth rates vis-a-vis the relaxing overseas investment (OI) regulations and clarifying
coverage has widened. industry they belong to. Typi- ambiguities for wealthy Indians, business families and start-
cally, these stocks tend to ups seeking to invest in foreign securities, funds and companies.
Will you go beyond your traditional trade at higher valuations The new rules simplify investment and open global opportuni-
growth investing focus? (price-to-earnings multiple) ties for Indian limited partners (LPs).
compared to their industry The key amendment in the circular relaxes restrictions for over-
 We have nine fund managers now. So, we will seas portfolio investors (OPI). Previously, Indian LPs could only
have style diversification.
invest in “units of an investment fund”.
Would you continue to focus on The updated guidelines now extend permissible investments
growth style? to “any other instruments,” including shares, stocks, interests in
firms, limited liability companies (LLCs), fixed deposits and more.
 It remains important for us as our largest The RBI has also amended the regulation pertaining to invest-
funds are positioned as growth-focused. ment funds. Previously, Indian investors could only invest in funds
What other styles are you looking at? directly regulated by the financial sector regulator of the host
peers as they are expected to country. This restriction often excluded popular investment desti-
B. GOPKUMAR  We are looking at value style. Our quant fund deliver higher rates of growth. nations like Singapore and certain US states, where funds are regu-
CEO, Axis Mutual Fund already has 3-year track record. These companies may also lated through their fund managers rather than directly by financial
have lower dividend yields as regulators. The amendment now includes funds regulated
How Axis MF's top schemes in AUM terms have performed the profits generated by the through their managers, widening potential investment destina-
business tend to be put back tions.
Returns % 2021 2022 2023 2024 (YTD)^ Latest AUM* into the company for business Investment conundrum
expansion. Before this circular, there was considerable confusion among
Axis ELSS 26 -11 20 15 authorized dealer (AD) bankers and Indian LPs regarding the clas-
36,800 sification of investments in offshore funds. Offshore funds are typi-
Category avg 32 2 28 17 crore that are gaining traction now? cally structured as corporate entities issuing shares or interests in
We were early movers in the quant a firm, unlike trusts issuing units. This led to debates on whether
space, and our quant fund is the larg- such investments fell under permissible categories. The typical
est in its category, exceeding a thou- approach adopted by AD banks was to authorize remittances only
Axis Focused 25 -14 18 13
13,932 sand crores in AUM (assets under when the fund was directly regulated by the host nation.
Category avg 34 3 27 16 crore management). Our quant fund The previous language of the overseas
already has a three-year track record. The new investment directions caused confusion
We follow a GARP (growth at a rea- rules simplify among Indian LPs who had committed
sonable price) investment frame-
Axis Growth work. Quant as a category has done investment and capital before the introduction of the
overseas investment framework. They
Opportunities 47 -8 32 21 open global
13,105 well, but it is a challenging category faced challenges in fulfilling obligations
Category avg 37 2 30 20 crore for distributors to communicate to opportunities if the fund was located in a jurisdiction
their customers because they don’t for Indian LPs where the financial regulator didn’t
know what the quant model is all directly oversee the fund but regulated
about. The category has got flows the fund manager. Additionally, new
Axis Bluechip 22 -5 19 13 from private bank and wealth chan- funds had to be established in locations like the Cayman Islands,
34,800 nels, as these people are able to artic- Mauritius or GIFT City to ensure investments from Indian LPs.
Category avg 25 4 26 16 crore ulate it to their clients, although we The RBI’s amendment offers flexibility regarding investment
are seeing some improvement now jurisdictions and the legal forms of the funds. OPIs can now invest
as we are doing a lot of roadshows. I in various structures, including limited partnerships, LLCs, varia-
Source: Value Research, Association of Mutual Funds in India; *^YTD (year-to-date) returns and AUM (assets under management) as of 14 June 2024 am hopeful that quant as a category ble capital companies and traditional companies. This change
should grow. allows Indian investors to participate in a broader range of invest-
PRANAY BHARDWAJ/MINT
Momentum is something we have ment opportunities, aligning their strategies with global practices.
change. I can’t make Shreyas Dev- still not explored. We also have an Further, these amendments impact carry and co-investment
overarching principle of risk-ad- structures for employees of private equity and venture capital
growth opportunities) be a value guy. justed return as part of our frame- Funds. The changes now allow employees flexibility in participat-
Besides nine fund managers, we Sachin Relekar (who manages work. We are not against any style. In ing in the carry and investing alongside the fund, permitting a

‘
and today you can see at least five-six change to value style in those funds. have a team of 20 analysts. So, we focused fund) has always been a fact, all of us in the team believe that broader range of investment options.
new fund offers com- But if you look at our have increased our growth-style fund as an asset management company, The RBI has also expanded the types of Indian entities that can
ing in that space. We other portfolios, like stock coverage as well. manager. All these nine you can’t follow just one investment invest in special purpose vehicles set up in international financial
are able to identify m INTERVIEW the manufacturing and Each analyst also has a We are able fund managers have style. You need to have a multi-style services centres (IFSC). Previously, only resident individuals and
new themes while business cycle funds, model portfolio for the to identify their different styles. approach. That is also the reason for listed Indian entities were permitted to make such investments.
working on existing ones. even the multi-cap and small-cap sectors they track. This new themes Our portfolio itself is having a large team of nine fund The new regulations now include “unlisted Indian entities,” signif-
What are your views on the fund, these are constructed quite dif- was introduced by like a growth stock, managers. We also have a dedicated icantly broadening the potential investor base for IFSC funds.
growth style of investing? ferently now. My belief is that it will Ashish Gupta (Axis while working with 80-85% of our value fund. We have fund managers These relaxations represent a significant opportunity for Indian
Our belief in the growth style of take at least two more quarters for MF’s new chief invest- on existing portfolio in growth who are adept at both growth and LPs to diversify their portfolios and capitalize on global investment
investing will play a significant role. the four flagship funds of ours— ment officer) after he ones style. They could have value styles. opportunities. By aligning the overseas investment directions with
Those who follow the growth style which did extremely well over the joined us. taken some tactical What are your plans for GIFT industry demands and international standards, the RBI has facili-
over a long period of time will see it last 10 years—to recover fully. Don’t you think B. Gopkumar value calls, but largely City? tated a more dynamic investment environment. This move is
come back, given the current focus We have added to our existing straying too far from Axis Mutual Fund CEO we are in growth style. We will have an outbound Schro- expected to empower Indian investors to engage more freely in
on consumption, interest rates cool- fund manager strength. Today, we the growth style But if you look at man- ders fund (UK-based asset manager global markets, fostering a more vibrant and competitive invest-
ing off and favourable monsoon pre- have nine fund managers. For exam- might deter distribu- ufacturing as a theme, Schroders is an investor in Axis Asset ment landscape.
dictions. The last three-four months’ ple, for our small-cap fund and bal- tors from recommending Axis there are a lot of bottom-up stories in Management Co.). For inbound, we Ajay Rotti is founder and chief executive officer of Tax Compaas.
performance was affected by the PSU anced advantage fund (BAF), we have MF schemes? that. will first start with a multi-cap fund. Kirtan P. Shastri, manager at Tax Compaas, contributed to this col-
(public sector unit) run-up, which new fund managers. Our BAF today No, I don’t think so. See, the style What about other investment We are also exploring other products umn.
doesn’t fit our growth framework. is among the top-performing funds of our large four funds cannot styles like quant and momentum on the GIFT City platform. Read an extended version of this column at livemint.com/money.

What a car loan costs you Rent out, rent in: Are there any tax benefits?
I t is tempting to buy a new car, be it an upgrade, a first car or another car for the family. Whatever
be the reason, a car loan makes the purchase easier. Car loans are usually of three to five years
but some lenders may offer loans for up to seven years too. A loan for longer may mean smaller
Parizad Sirwalla
ISTOCKPHOTO
along with the prescribed
interest. The interest received
equated monthly instalments (EMIs), which makes the car seem more affordable, but overall, you Is there a tax benefit avail- by you from your brother on
pay more as interest. Don’t forget that a car is a depreciating asset, so taking a bigger loan able if an individual stays the loan would be taxable in
may not be the best thing to do. But if you take a car loan for a short duration, the EMIs in a rented house and at your hands. The clubbing
will be heavy and non-payment will mean a blot on your credit report. Conditions the same time rents his provisions of the Income Tax
apply to the loan amount also. For instance, some lenders give a loan for the full own house in the same Act do not cover the situation
ex-showroom price of the car, while others may offer a loan up to 80%. Apart from city? of clubbing of income derived
the interest rate on a car loan, also take a look at the applicable processing fee and —Arindam Mukhopadhyay by your brother from the
other charges. investments made by him,
Loan amount = ₹1 lakh. Tenure = 5 years We assume that you are in through the loaned funds
employment and are paid a received from you.
Interest
Lender EMI (₹) Processing fee house rent allowance (HRA) However, please note that
rate (%) by your employer. As per the there are certain provisions
IndusInd Bank 8.00-18.00 2,028-2,539 3.00% provisions of the Income Tax that bring to tax income in the
DCB Bank 8.50-11.37 2,052-2,193 2% (Min ₹5,000)
Act, exemption towards HRA hands of the transferor, which
received from an employer arises from revocable transfer
Bank of Maharashtra 8.70-13.00 2,061-2,275 0.25 (Min ₹1,000 and Max ₹15,000) can be claimed subject to ful- of assets.
Canara Bank 8.70-11.95 2,061-2,222 0.25 (Min ₹1,000 + GST and Max ₹5,000 + GST* filment of the following con- Basis the facts of the spe-
Central Bank of India 8.70-10.15 2,061-2,132 0.50 + GST (Mini ₹2,000 and Max ₹20,000) ditions: cific case, there are judicial
1) The residential accom- precedents where courts have
UCO Bank 8.70-10.05 2,061-2,127 Waived up to 30 June 2024 modation for which rent is ASK MINT brother at 0.5% interest taken a view that loan of funds
Union Bank of India 8.70-10.45 2,061-2,147 ₹1,000 + GST being paid should be actually m TA X AT I O N for one year. He is invest- to close relatives with nomi-
Indian Bank 8.75-10.00 2,064-2,125 Nil occupied by the assessee; ing the proceeds only in nal or without interest is
2) The assessee has fixed deposits and mutual nothing but a paper transac-
Punjab National Bank 8.75-9.60 2,064-2,105 0.25 (Min ₹1,000 and Max ₹1,500)
incurred actual expenditure order to justify a claim of HRA funds (safe investments) tion to reduce the tax burden.
State Bank of India 8.75-9.80 2,064-2,115 ₹750 to ₹1,500 + GST** towards payment of rent for exemption, it is important and is thus able to repay Hence, the facts and genuine-
CSB Bank 8.75-11.00 2,064-2,174 Not available on website said accommodation; and that all the conditions speci- my loan amount back with ness of loan transactions to
3) The said accommodation fied above are fulfilled and 0.5% interest. Will this relatives may be scrutinized
IDBI Bank 8.80-9.60 2,066-2,100 Up to ₹2,500
is not owned by the assessee. can be further substantiated transaction have any club- further.
Bank of India 8.85-10.85 2,069-2,167 0.25 (Min ₹1,000 and Max ₹5,000) These provisions do not with documentary evidence bing implications on Parizad Sirwalla is partner
Indian Overseas Bank 8.85-10.35 2,069-2,142 As applicable expressly stipulate that the (viz. rent agreement, rent income tax? and head, global mobility ser-
HRA exemption would not be receipts, bank transfer proofs, —Name withheld on request vices, tax, KPMG in India.
Punjab & Sind Bank 8.85-10.25 2,069-2,137 0.25 (Mini ₹1,000 and Max ₹15,000); Up to 50% concession available available if the assessee owns etc.) and reasonable explana-
another house in the same tions as to why the taxpayer We understand that you Do you have a personal
Banks that have not updated information on their websites are not included here. Data was taken from bank websites on 12 June 2024. The EMI range is
indicative and calculated on the basis of interest rate range. In an actual situation, it may include other fees and charges. Actual applicable interest rate may city and earns rental income could not occupy the prop- have given the sum of money finance query? Send in your
vary based on the credit profile, loan amount, tenure and as per bank’s discretion. from the same. erty owned by him (other than under a loan to your brother queries at
*Bank is celebrating Retail Loan Festival and waiver of 50 processing charges from 01 June 2024 to 30 June 2024. mintmoney@livemint.com
**50 concession for SBI GREEN CAR (EVs) However, such claims may the reason of tax benefit) if at a nominal interest rate for a
and get them answered by
PRANAY BHARDWAJ/MINT
be prone to scrutiny by the queried by the tax authorities. certain period and he would
Source: MyMoneyMantra.com industry experts.
income tax authorities. In I have given a loan to my be repaying the loan to you
12 MONDAY, 17 JUNE 2024
NEW DELHI VIEWS LIVEMINT.COM

OUR VIEW MY VIEW | THE INTERSECTION

PTI

The country requires 20 million

new jobs to be created each year
This asking rate may sound daunting but it’s both necessary and possible to achieve with reforms

power this quest. High growth is a
necessary condition, but it needs to
be supplemented with a concerted
programme to boost employment
generation. So what can be done?
Before we get there, it’s important to
disabuse ourselves of the notion that
government jobs and military recruit-
ment should be employment genera-
NITIN PAI tion schemes. Yes, there are a huge
is co-founder and director of The number of unfilled vacancies in the
Takshashila Institution, an independent Union and various state governments,
centre for research and education in public and these should be filled to capacity.
policy. Beyond that, they will constitute an
and 1920s, respectively. Today, we must
debunk the argument that Indians can
directly jump from agriculture to servi-
ces, skipping manufacturing. I’m sure
there will be millions of people who will
make such a jump, as can be seen from
the number of people from villages and
small towns who work in service indus-
tries. But if we have to provide for hun-
dreds of millions of livelihoods, it can-
not be done without large-scale manu-
facturing. A job-hungry India-sized
player can transform global economics,
just as China did over the past three dec-

Fix GST flaws to make it

unwarranted drain on the economy. ades or so. To believe otherwise is either
Similarly, there is a case to reform the escapism or defeatism.

A
number of analysts attribute the Agnipath scheme so that personnel can Third, get more women into the
Bharatiya Janata Party’s (BJP) move laterally into security forces, but it workforce. Across income levels, every
underperformance in the gen- is dangerous to view the exercise from employed woman creates at least one

a ‘good and simple tax’ eral election to voter unhappiness with

the Narendra Modi government over
unemployment, job reservations and
farmer livelihoods. The Agnipath
the lens of an employment programme.
Here are some ideas on how we can
achieve a quantum jump in employ-
ment across the country.
other job. Female workforce participa-
tion has been declining and it is still
unclear why this is so and how it can be
addressed. Deeply entrenched social
scheme of military recruitment came in First, create new well-planned, sus- mores might have something to do with
for criticism during the election cam- tainable cities. There are many good it, at least to some extent. These will be
India’s goods and services tax needs a reboot on which the Centre and states must arrive at paign and many political commentators reasons why India needs new cities. hard to change directly. But we do know
expect that the new government will be Existing cities are highly congested and what we can do to make it easier for
a consensus. We should simplify and broaden GST for this reform to serve the economy better compelled to make changes to it. We their growth comes at the cost of quality women to work from home or at work-
should view interpretations of election of life and the environment. New cities places. Toilets, public transport, safety,
results with some scepticism, but it does can be green cities, with everything street lights, home appliances, child
appear that the issue of inadequate from layout, building materials, natural care facilities and anti-harassment poli-

T
hat cooperative federalism has
been in need of rescue, given the
shape of Indian politics, is all the
more reason for India to put the
economy first. Doing so can act
as a political unifier, as seen in the
run-up to GST adoption back in 2017. The
Centre and states must use this Saturday’s GST
Council meeting to tackle the task of fixing the
flaws of this catch-all tax on goods and services.
For this, the Council needs an ambitious win-
win agenda. While GST was promoted on the
slogan of “One nation, one tax,” with invest-
ment invited to a unified market forged by it
for business taxpayers, the overall economic
promise of this reform was far larger. To recap,
it was expected to simplify indirect taxation,
crush the scope for tax favours, end a tax-on-
tax cascade by allowing input tax credits,
nudge businesses to claim these by going
formal, and enlarge the collection base. In its
most subtle but enduring impact, by relieving
value chains of a tax pile-up at every link, it was
meant to usher in lower costs on the back of
be in a standard bracket at a rate that assures employment opportunities has bubbled resources and public services designed cies are low-hanging fruit that will show
the exchequer revenue sufficiency, with only up to the surface of our political ocean. to emit lower carbon than if existing results at the margin. The government
India’s growing economy is creating cities were to grow. I have previously has instruments and the mandate to
one slab above it and another one below for livelihoods and employment, but not argued that India can create new cities push each one of these levers.
exceptional items to be overtaxed or relieved fast enough. We need to create 20 mil- by building new state capitals, shifting Fourth, champion globalization. Free
as a policy call. The key is to institute a system lion jobs every year (to cater to the 12 military stations, founding new univer- trade and movement of people is crucial
whose rationale is so clear, it’s hard for hidden million young people entering the sities and innovation campuses. Con- for India’s development agenda. The
interests to distort. With our monthly GST workforce and to transition around 8 struction and infrastructure industries West can perhaps afford to retreat
million farmers languishing in rural can create millions of jobs—from behind tariff walls, but India cannot. Of
collections within sniffing range of ₹2 trillion, areas). This is the required run rate. unskilled to highly-skilled—at a scale course, reversing the de-globalization
although the interim budget for 2024-25 had a Even if our current run rate is 5 million few other sectors can. currently underway is a great task, but
relatively modest projection, we have the fiscal a year, we are still falling short of the Second, attract large-scale manufac- great nations undertake great tasks.
space to rid this levy of its complexity and go target. To put this in perspective, India turing. Yes, it’s still possible in the age of These are some examples of the kind
for simplified stability. must create more jobs per year than the robotics and artificial intelligence. We of thinking we need to address the jobs
entire population of the Netherlands, have spent more than a century telling challenge. So far, growth, migration and
While GST slabs need a reset, we must also Sri Lanka or Taiwan. It’s a scary num- ourselves that India cannot do indus- democracy have helped India avoid the
widen its coverage to include fuel, liquor and ber. Yet, India cannot become Viksit tries and big manufacturing. A look at kind of social unrest that accompanies
other stuff left out for later consideration. Since Bharat without pulling off such an India’s economic history shows how widespread unemployment. There are
states with heavy local levies on these items unprecedented feat. Mahadev Govind Ranade and B.R. limits to these buffers and it is best that
had feared it would hollow out their coffers, a Economic growth is the fundamen- Ambedkar debunked the naysayers and we don’t take them for granted. The
tal engine—the only engine—that can called for industrialization in the 1890s government has its job cut out.
consensus on this is a challenge. But a case for it
can and should be made. Petroleum products
remain particularly overtaxed, with a high
domestic burden depriving users of a global
moderation in oil prices caused by America’s
rise as a producer over the past decade or so. For
GST to play a more extensive role in reducing www.livemint.com
New Delhi, Mumbai, Bangalore, Kolkata, Chennai, Ahmedabad, Hyderabad, Chandigarh*, Pune* Tuesday, June 17, 2014 Vol.8 No.143 `4.00 in Delhi-NCR/`5.00 outside Delhi-NCR 24 PAGES

higher efficiency brought about by greater our cost base and making the economy more CORPORATE:The challenges
before Vishal Sikka >7
MARKETS: Irda allows insurers to deal in
interest rate derivatives >6

‘gig’ specialization across the economy. All competitive, fuel should be treated like any CONTENT PARTNER
MANAGEMENT: Questions hang over
Bengal jute mill violence >7
VIEWS: The US’s holiday from history >23

this, more than its uniformity, explains why other item, not as something easily squeezed SENSEX 25,190.48 æ 37.69

Snack makers
NIFTY 7,533.55 æ 8.55

POLITICAL FACTOR
DOLLAR `60.17 Æ `0.40 EURO `81.41 Æ `0.52

Government
GOLD `27,650 Æ `325 OIL $112.78 Æ $0.32

QUICK EDIT
In a country well governed,
look for a boost
Inflation and Iraq overhaul
panel calls for Slipping on

poverty is something
from late-night

GST was hailed as a bold move. It was pro- for revenue because its demand is somewhat World Cup games
B Y S UNEERA T ANDON
S APNA A GARWAL
····························
NEW DELHI/MUMBAI
loom over markets
tax regime
of

B Y R EMYA N AIR
remya.n@livemint.com
oil
T he growing risk that
Iraq may descend into
civil war has roiled the glo-
bal oil markets.
Rising energy prices

F
economy, at least on paper, and that’s what price inelastic. To allay the anxiety of states over
ootball fan Toshik Anand’s ···························· combined with the possi-
refrigerator is well stocked NEW DELHI bility of a bad harvest in

with cans of beer and frozen
snacks like sausages and potato
wedges.
The 30-year-old employee of
a technology startup has also
stocked up generously on potato
chips, other small eats and bev-
to be ashamed of.
Rupee breaches 60 per
dollar level; finance CLOUD OF UNCERTAINTY T he tax administration and
reforms commission head-
ed by economist Parthasarathi
case of a poor monsoon
complicate matters for the
new Indian government.
minister says govt Wholesale price inflation accelerated in May at the quickest pace since December, Shome has called for a sweep- Such a combination has
tracking currency’s unnerving investors who had been encouraged by positive data last week. A sharp ing overhaul of the country’s usually spelt bad news for
tax administration to make it inflation, budgetary bal-
movement closely escalation in internal strife in Iraq, which could cause crude oil prices to rise further,
and expectations of a below-normal monsoon have also injected a renewed sense more friendly to both taxpayers ances and the current ac-

made its initial hiccups bearable. lost inflows, they could possibly be offered a
erages to share with friends who
are watching at his bachelor’s
apartment late-night telecasts of
the month-long 2014 Fifa World
of uncertainty in the economy. The S&P BSE Sensex edged down 0.15% to and investors. count deficit.
B Y A SIT R ANJAN M ISHRA 25,190.48 points at the close of trading, while the rupee breached the 60 per dollar The panel has recommended However, there is no
asit.r@livemint.com level to end at 60.17, the lowest level since 6 May. large-scale structural changes need to panic right now.
························· and greater coordination in the The price of a barrel of the

In a country badly governed,

Cup that started on 12 June. NEW DELHI
functioning of both the direct benchmark crude is still

W
“Since most of the crucial holesale price infla- WHOLESALE PRICE INDEX (WPI) CONSUMER PRICE INDEX (CPI) and indirect tax arms of the within the range it has
matches are being played at tion accelerated in INFLATION Percentage change
INFLATION Percentage change government—the Central traded at since April 2011.
midnight, one has to watch May at the quickest year-on-year year-on-year Board of Direct Taxes (CBDT) It is also below the level it
19 14
them at home,” said Anand. pace since December, led by and Central Board of Excise hit during the most turbu-

Although India’s GST subsumed a bundle bigger share of the divisible pool of taxes. Or a
For the month-long duration
of the World Cup being played
in Brazil, midnight snacking at
home will be a way of life for
football afficionados like Anand
and his friends, promising a
an increase in food and fuel WPI (Food) and Customs (CBEC). lent months of the Arab
prices, unnerving investors 10.67 CPI (Food) The report, submitted last Spring. Brent crude had hit
heartened by a raft of encour- 6.08 month to finance minister a record $143 a barrel on
aging macroeconomic indica- 9.5 9.4 Arun Jaitley and made public 11 July 2008. Iraq sits on
tors last week. on Monday, proposed a com- the fifth-largest oil reserves
A sharp escalation in inter- plete revamp of the dispute in the world but its output

mini boost to the sales of pack-
aged food and beverage makers.
The eight-hour, 30-minute
wealth is something to
nal strife in Iraq, which could resolution mechanism, widen- has only recently recovered
cause crude oil prices to rise CPI ing the use of the permanent after the steep drop follow-
further, and expectations of a 9.39 account number or PAN and ing the US-led invasion.
WPI

of local taxes, it was hobbled in its role as ‘the GST split that’s more than half. A parallel plan
time difference be- below-normal monsoon have 8.28 spending 10% of the tax depart- The recent events in Iraq
4.77 6.01
tween Brazil and also injected a renewed sense 3 7 ment’s budget to improve tax- are a reminder of how In-
India means of uncertainty in the economy. April 2013 May 2014 April 2013 May 2014 payer services. dian economic stability is
the matches To be sure, it is too early to It called for the abolition of often at risk because of the
are being posit that the rebound in the post of revenue secretary, volatility in global oil pric-
telecast live Wholesale Price Index-based SENSEX R/$ (Inverse scale) setting up of a tax council to es. Energy security remains
in India ((WPI-based) inflation and the develop a common tax policy a distant dream.
26,000 25,190.48 58
be- strife in Iraq, India’s second and legislation for both direct
16 Jun

be ashamed of.
tween largest oil supplier, are set- and indirect taxes and merit-

great simplifier’ by its multiplicity of rate to phase out cesses—which states cannot
9.30pm
and 3am—long after the closing
time for bars and eateries—so
fans are eating and drinking at
home while watching the
world’s most popular spectator
sport.
Chains stores such Godrej
backs sufficient to reverse the 60.17 based promotions of officials in
recent turnaround in senti- 16 Jun the tax administration.
INSIDE
ment. Shome, a tax expert who also
Still, on Monday, the S&P
BSE Sensex edged down 0.15%
24,121.74
16 May 2014
headed a panel that constitut-
ed guidelines for general anti-
Modi in Bhutan
to 25,190.48 points at the close
of trading on the Bombay Stock
59

Nature’s Basket and 24/7 are
58.78
16 May 2014
avoidance rules (Gaar), was
last year given the task of head-
ing the commission to stream-
I ndia is committed to be-
ing a good neighbour
and a change in govern-
TURN TO BACK PAGE ® line the country’s tax adminis- ment will not alter the dy-

brackets. Granted, the global ideal of a single access—could sweeten such a bargain. Of
running promotions to take ad-
vantage of the rising in-house
consumption, which comes at a
time when packaged consumer
goods makers are waiting for an
economic rebound to perk up
sales growth.
Two years of sub-5% econom-
ic growth have caused individu-
tration. namics of its ties with
ALSO SEE It remains to be seen if the Bhutan, Narendra Modi
Bharatiya Janata Party-led Na- said on Monday. Modi ar-
>US, Iran hint at Iraq talks 60 tional Democratic Alliance rived on Sunday on his
as rebels seize new city >P3 24,000
(NDA), which came to power in first foreign trip after tak-
>Mark To Market: Problem of stickiness of
inflation in manufactured products >P14 ing charge last month. >P4
Source: Central Statistics Office, department of industrial policy and promotion, BSE, Bloomberg TURN TO PAGE 2®
AHMED RAZA KHAN/MINT

rate is way too regressive for a country where course, a pitfall to avoid would be a pledge of
als and households to cut back
on discretionary spending, but IMPARTING DIGNITY
the formation of a majority gov-

Toilets at home will not stop rapes, but can reduce risks
CON F U C I US
ernment after the April-May
general election and the prom-
ise of economic reforms have
sparked hope that consumer PRADEEP GAUR/MINT
sentiment will improve. B Y N AMITA B HANDARE
mint SERIES-I of toilets or the clothes women

levies must be borne mostly by the better-off, compensation based on dicey assumptions of
“In general, there has been a
lull in the last few months and
this is the first big occasion fol-
lowing the positive turn in senti-
ments. We are upbeat,” said
Mohit Khattar, managing direc-
tor and chief executive officer at
Godrej Nature’s Basket, an up-
scale chain of food stores owned
feedback@livemint.com wear or where they go or who
························· they meet. Rape is caused by
NEW DELHI
doing what every other woman men who rape.
U nder cover of a hot night
in May in Uttar Pradesh’s
Badaun district, two teenage
in the village does. Unlike the
others, they never returned.
The next morning, their raped
When women are forced to
seek out some measure of pri-
vacy in desolate spots late at
cousins stepped out to do what and brutalized bodies were night or early in the morning,
millions of girls and women do found strung up from a mango before people are up and
across the country. tree, like a perverse trophy for about, they become more vul-

but still, we should have three slabs at most— tax intake. All said, it’s time to act. GST hasn’t
by Mumbai-based Godrej ‘Answering the call of na- the entire village to see. The nerable to sexual assault. Hav-
Group. ture’ is a euphemism that im- Badaun incident led to nation- ing a toilet at home will not
Godrej Nature’s Basket is pro- plies some blessed, bucolic al outrage but even as the case stop rape unless men stop rap-
state where individuals act on is being investigated by the ing. But it will mitigate one of
TURN TO PAGE 2® free will when nature ‘calls’. Central Bureau of Investiga- the many risks women face. At
The reality is considerably tion (CBI) and monitored by The biggest impact: Lack of sanitation has special consequences for the very least it will afford
ALSO SEE more sordid. Across the coun- the Allahabad high court, re- women, not just in terms of assault, but also in terms of their health. them a measure of necessary
try, in rural as well as urban ports of more rapes and mur-
>Messi makes his move >P10 India, millions of women and ders from Uttar Pradesh con- night to use the fields. A white remember.” They were found TURN TO PAGE 2®

with every taxable item slotted in a way that lived up to its potential so far and its guardians
>Mexico unlikely to be overawed by World
Cup favourites Brazil >P10
Mint is also available for R8 with
Hindustan Times in Delhi-NCR only
girls either wake up well before
dawn or wait until late at night
to use the open fields that
function as their toilet.
In Badaun, the cousins were
tinue to make headlines. car with five men inside pulled the next day at Bhatinda rail-
In Haryana’s Bhagana vil- up alongside. “They put a way station, 170km away. A ALSO SEE
lage, four Dalit girls aged from piece of cloth on our mouths,” subsequent medical examina-
13 to 18 had stepped out, like says the 18-year-old. “We lost tion confirmed rape. >Toilets without flushes >P19
the Badaun cousins, late at consciousness and that is all I Rape is not caused by a lack >Separate toilets for women a must >P19

explains itself. The bulk of these items should must join hands to give it another go.

MY VIEW | MODERN TIMES

The quiet influencers: How the poor have shaped India

In past years, whenever the educated mid-
MANU JOSEPH dle-class grew cynical of democracy, India’s
poor have shown their faith in it by turning
up to vote. They have forced governments at
all levels to be compassionate alms-givers.
And this year, the poor intervened again and
meant for the poor, especially poor farmers, a typical middle-class person is a great bene- The price we pay for it is that India treats
as though India’s poor have no other profes- ficiary of poverty. India may appear to be a everyone as though they are poor. India, in
sion. Satellites would save farmers from very competitive place because of the sheer plain sight, looks poorer than it really is. If
nature; the internet would tell farmers crop number of people who turn up for a seat, but you do not count airports. Some of our air-
prices and mobile phones would save their the fact is that most Indians do not have a ports are so swanky, I am tempted to follow
children in emergencies. Eventually, digital chance at a fair shot. Their role is to make up foreign passengers who are visiting India for

W
as there ever a possibility that the
first thing Narendra Modi would
do after taking office again as
Prime Minister was declare that his govern-
ment would make air-conditioning a funda-
mental right? It may not have moved most
Indians, even though it has been a scorching
summer. Most of India is hot most of the
diminished the might of the ruling party. But
this is only the obvious way in which the
poor have shaped India.
India’s public character comes from its
poor. India is the way it is chiefly because of
its poor. Almost every concrete and abstract
thing in India is influenced by the poor.
India’s elite in every field are deeply influ-
connectivity spread across the country the vast numbers and make the winners look the first time—just to see the shock on their
because of entertainment distinguished. face when they hit the actual town they came
like music, films and porn, But look at what hap- to visit. India assumes that airports are for
but the notion that even Almost every pened to the profile of the the rich and that they deserve spaces that are
the poor want fun does not Indian cricket team when beautiful, while the rest of the nation need
seem to strike us. We are concrete and more Indians found the not pretend to be aesthetic.
shaped by the gravitas of nutrition, opportunity and There is not much street joy in our cities
poverty. Even when the
abstract thing equipment to train for this because the good life cannot just spill onto

is a journalist, novelist, and the

year, yet most offices and modes of public
transport are not air-conditioned. India is
creator of the Netflix series,
‘Decoupled’
not protecting the environment; just that it
perceives air-conditioning a luxury, and its
unspoken policy is that Indians need not be
treated with luxuries. That is how India has
trained the poor to think, and this is how the
poor have shaped India to treat them.
The first order Modi signed after taking
over will give away cash—about ₹20,000
crore to about 100 million farmers. This was
probably a way to convey to India’s poor that
contrary to what they may have thought,
they were his priority.
Indian elections are often the revenge of
the poor.
enced, affected and shaped by the poor.
India’s poverty gives Indians a clear moral
direction. Every affluent Indian may or may
not have a moral compass, but certainly has
one for India, and it directs the country to
end poverty. How to go about it is at the
heart of our economic, social and political
debates. Many powerful emotional issues
like religion are secondary to the wound of
poverty. People who do not consider this the
priority cannot hope for a career in public
life. When India wants to invest in technol-
ogy, it must first make it dreary by invoking
the tech’s uses for the poor. This is what
India did at the advent of space exploration,
the internet and mobile phone—it was all
poor try to tell us that not
everything about them is
in India is sport. The straight-bat
middle-class city boys who
the streets. To eat a large meal in public is
somehow vulgar. Any sign of affluence in
grave all the time, we are
unable to fully understand
influenced by could speak well at press
conferences have vanished.
plain sight is vulgar. That is why it is amusing
when upper-middle-class people condemn
that dimension of life. the country’s In the same way, the billionaire weddings. Just about any middle-
The Indian middle-class make-up of prestigious col- class wedding, or even a typical five-star buf-
may not always realize it, poverty leges has changed. But fet in India, is an insult of the poor.
but its sense of well-being there are reminders of India’s civic ugliness does have an unsung
emerges from the poor, many things that have not social benefit: it does not alienate the poor.
from being privileged in a sea of poverty. changed. The nation is still rigged in favour Unlike in Europe where the poor live in great
Many of them may realize it when they go of people from affluent homes. contrast to the spectacular urban beauty all
West and do not feel special anymore. When Also, it is very cheap to be middle-class in around, India’s poor belong more easily in
at home, Indians are so habituated to their India because the poor subsidize us all. The our public spaces. As a result, the affluent
privilege that they seem to start believing in poor serve us for almost nothing. They also almost never interact with public spaces.
the foolish notion that the poor are poor force the government keep the prices of They live in little islands of private spaces,
because they are lazy or not smart. Actually, many basic necessities low. like zoo animals that own their own zoos.
LIVEMINT.COM VIEWS MONDAY, 17 JUNE 2024
NEW DELHI 13

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

America’s debt is sustainable but Hunter Biden’s conviction has

brought out the best in his dad
sustaining it will be a challenge US President Joe Biden’s response affirmed faith in his leadership

The IMF estimates that US government debt isn’t excessive but also offers budget-deficit reduction advice that’s unrealistic

ISTOCKPHOTO

NIA-MALIKA HENDERSON
is a politics and policy columnist for
Bloomberg Opinion.

BARRY EICHENGREEN
is professor of economics at the University of
California, Berkeley, and the author, most
recently, of ‘In Defense of Public Debt’

O
n one of the worst days of his life,
US President Joe Biden showed
the best of who he is. He affirmed

O
ne of the more amusing exercises
on the economic calendar is the
International Monetary Fund’s
(IMF) annual review of the United
States. Yet, while everyone knows
that the US government pays
absolutely no heed to what the IMF has to say
about its affairs, the Fund’s most recent Article IV
review of the US economy is striking for one
unexpected finding. Readers will be startled to
learn that, in the IMF’s estimation, US government
debt is on a sustainable path.
This conclusion reflects consensus assumptions
about the evolution of inflation, gross domestic
product (GDP) growth, interest rates, and budget
deficits. It is of course hazardous to attempt to
forecast these variables for a period of ten years,
much less for 30 years, the horizon over which the
US Congressional Budget Office (CBO) undertakes
an analogous exercise.
The assumptions adopted by the two institu-
tions differ in their particulars, the CBO being
slightly more optimistic about America’s growth
prospects, for example. But while both institutions
foresee debt rising over the next ten years, neither
sees it spiralling out of control.
To understand why, it is important to begin
from the appropriate starting point. This is not
total federal government debt, but rather debt in
the hands of the public. A non-negligible share of
total US federal debt is held by the government
itself, notably in the Social Security Trust Fund.
The Treasury’s interest payments on this portion
represent interest income for the Trust Fund. On
this share of its debt, the government is simply
making interest payments to itself.
Debt in the hands of the public is currently 100%
of GDP. This is an elevated level by advanced-
economy standards, but by no means catastrophic.
CBO sees this rising, assuming no changes in the
prevailing law, to 116% of GDP in 2034, 139% in
2044 and 166% in 2054.
These levels look alarming. But Japan has shown
that an advanced economy that borrows in its own
currency can manage debts of this magnitude.
Factors limiting the risk of a debt crisis, as the IMF
notes, include the depth of US financial markets,
the breadth of the investor pool, the dollar’s role in
the international system, the Federal Reserve’s
ability to backstop the Treasury bond market, and
the strength of American institutions.
What then could go wrong?
Well, US institutions could turn out not to be so
strong after all. Former US President Donald
Trump has a personal history of defaulting on his
debts. As William Silber has observed, Trump in
the White House for a second presidential term
could instruct his Treasury Secretary to suspend
payments on the debt, and neither the US Con-
gress nor the courts might be willing to do any-
thing about it. The gambit would be appealing to
Trump insofar as a third of US government debt is
held by foreigners.
The damage to the dollar’s safe-asset status
would be severe, even if Congress, the courts,
or a subsequent president reversed Trump’s
suspension of debt payments. Investors in US
Treasuries would demand a hefty risk premium,
potentially causing the government’s interest pay-
ments to explode.
Even absent this dire scenario, meeting addi-
tional interest obligations as the debt ratio rises
could require the federal government to cut dis-
cretionary spending, with negative implications
for economic growth. The subsidies offered by the
CHIPS and Science Act are designed to stimulate
growth by encouraging investment in high-tech
capacity and know-how. Similarly, the Inflation
Reduction Act’s tax credit for investment in clean
energy is intended to avert disruptive climate
events that could impede economic growth rate
and depress the level of GDP.
Higher spending on interest payments will
mean either more debt, testing sustainability,
or less investment in these other priorities,
which could jeopardize growth.
The CBO expects discretionary spending by the
federal government as a share of GDP to fall by
about a fifth from current levels by 2034—without,
however, inferring from this contraction much
adverse impact on the overall rate of America’s
economic growth.
But if the cuts fall on public investment in semi-
conductors, quantum computing, clean energy
and education, as seems likely, then the negative
growth effects could be substantial. And sharply
slower growth would throw debt sustainability
into doubt.
The IMF offers a lengthy menu of possible
measures for closing the budget deficit and
stabilizing US debt. Revealingly, most of the
options with quantitative oomph operate on the
revenue side of the budget, reflecting the reality
that tax revenues as a share of GDP are low by
advanced-economy standards. These include
eliminating tax deductions for state and local taxes,
mortgage interest, sale of one’s principal residence
and employer-based health care, and raising cor-
porate tax rates and adding a value-added tax and/
or a carbon tax.
In your dreams, it is tempting to say. Still, the
International Monetary Fund, unlike the rest of us,
is entitled to dream. ©2024/PROJECT SYNDICATE
his faith in his son, Hunter Biden, who was
convicted on three felony gun charges.
And he affirmed his faith in the justice sys-
tem that held his only living son to
account. Not only that, but hours after his
son was found guilty, the US president
delivered a forceful speech on gun control
that underscored his deep humanity,
decency and determination to stay
focused on the problems of average Amer-
icans rather than drown in bitterness, self-
pity, revenge and victimization. He spoke
of hope in the face of loss, comforting
those who’ve lost loved ones with his own
story of grief.
What Biden said was yet another stark
and important contrast with former US
President Donald Trump, who appears to
believe that his self-created legal prob-
lems are matters of the state. Trump has
vowed revenge if he returns to the White
House, and Biden has said he respects the
outcome of his son’s trial.
The last two weeks have crystallized
who these men are and who they would be
in the next four years as president like no
other stretch of the campaign so far.
It is the old and honourable man versus
someone who comes across mostly as a
con artist of sorts.
If elected, Trump will probably try to
wipe away his own legal problems—
including his recent conviction on 34
counts of felony. He will likely weaponize
the Justice Department, and spend his
first days in office as something of a dicta-
tor, pardoning many insurrectionists of 6
January 2021.
In contrast, when asked by ABC’s David
Muir if he would rule out pardoning his
son, Biden said yes because he believes in
the rule of law—unlike Trump.
Politically, Hunter Biden’s conviction
has complicated the grand old party’s
claims of a two-tiered justice system
where his father is the puppet master. It
has also created strange bedfellows.
Florida Representative Matt Gaetz, a
well-known agent of chaos and conspiracy
theories, posted on X (formerly Twitter)
that the “Hunter Biden gun conviction is
kinda dumb, tbh.” The Trump campaign
called the verdict a distraction from “the
real crimes of the Biden Crime Family,” a
narrative with no evidence that Republi-
cans have been trying to sell for the last
few years. An earlier draft of the statement
ended with a rare note of compassion: “As
for Hunter, we wish him well in his recov-
Joe Biden’s tragic family life is well known
to his supporters REUTERS
ery and legal affairs.” But the apparently
vengeful Trump campaign has little room
for compassion. The Hunter line was
edited out of a revised statement that was
sent later, according to CNN.
That Hunter Biden found himself
standing in a courtroom hearing guilty
verdicts was the result of his own behav-
iour, but it was also the result of a years-
long effort by Republicans to taint Presi-
dent Biden.
Even if Trump’s allies didn’t recognize
that Biden’s strength as a politician came
from his resilience as a dad in the face of
his tragic family story, Trump seemed to
understand it viscerally. So much so that
it seems he tried to ensnare a foreign
leader into smearing Biden and his son
over foreign business deals.
That didn’t pan out, but Trump’s allies
have spent the years since trying to make
good on Trump’s initial plot. It sounds a
bit Shakespearean, but the plan was
always about erasing Biden’s reputation as
the grieving and devout family man and
replacing it with something seedier.
Hence the Republican party’s relentless
focus on Hunter Biden, who has struggled
with drug addiction.
This effort has proved successful in
many ways. Yet, this difficult time for
Biden’s family is also proof of his core
goodness, his unwavering sense of
decency, his enduring faith in God and his
relatability, the very traits the Republican
would like to obscure.
Millions of Americans struggle with
their own addictions and those of family
members. Joe Biden’s struggle is their
struggle.
“I am the President, but I am also a Dad,”
Biden said in a statement. “Jill and I love
our son, and we are so proud of the man he
is today.”
After giving a moving speech on gun
control, telling the families of people lost
to gun violence to never give up hope,
Biden flew back to Delaware to be with his
son and family.
On the tarmac, Biden embraced the son
he almost lost five decades ago in a car crash
that killed his first wife and baby daughter.
His eyes closed as if in prayer, embodying
the kind of unshakeable love, faith and
hope that the United States of America des-
perately needs. ©BLOOMBERG

MY VIEW | GENERAL DISEQUILIBRIUM

The new government is flexing centralizing muscles

cede taxation control over petro-products
RAJRISHI SINGHAL and alcohol because these remain key reve-
nue sources.
This assumes importance because many
states, especially those with non-BJP gov-
ernments, have been complaining of the
through discussion with all stakeholders and
not pushed through unilaterally.
There could be many reasons for the gov-
ernment’s apparently continuing insistence
on adopting unilateralism and a centralizing
tendency, but worse-than-expected election
adopting what seem to be decisive postures
on unilateral issues—may be viewed as the
party’s bid to depict itself as having emerged
unscathed from the polls and show that the
results have not dented its core priorities of
driving cultural, political and social homo-
labour is part of the concurrent list in the
Constitution, allowing both the Centre and
states to enact laws. The government’s abil-
ity to reach across political fences, remove
some of the contentious rigidities (such as
barring civil courts from hearing labour-re-

I
f the poetic assertion of morning showing
the day holds true, then first-day state-
ments uttered by ministers of the ruling
Bharatiya Janata Party (BJP) should illumi-
nate India’s political path ahead. From all
indications available, it is likely that the
notion of cooperative federalism will be put
to severe test. The government’s govern-
Centre’s discriminatory treatment. These
states have been protesting that their share
in the divisible central tax pool does not
reach them on time, or their dues from cen-
tral schemes (such as the Mahatma Gandhi
National Rural Employment Guarantee)
have been held back or sometimes even
denied outright. Dissatisfaction has also
results for the BJP might be key here.
Whichever way you
slice it, the BJP’s final tally
of 240 seats—after claim- The Centre’s
ing it would get 370 seats,
against 303 last time—is a dalliance with
clear message from the
electorate that the ruling
unilateralism
geneity—or centralization in decision-mak-
ing, resource pooling and
power dispersal.
Another reason could be
the party’s seeming diffi-
culty in shedding its feudal
trappings, under which
patron-client relationships
lated disputes) and accommodate state-level
concerns will test its federalist chops.
The second concern relates to fraught
revenue sharing between the Centre and
states, in both the mandatory as well as dis-
cretionary verticals. In the first, tax devolu-
tion from the central pool to states has been
falling, even though states are supposed to

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
ance structure, despite hopes springing
from the return of coalition politics, could
lapse into its default mode of overt centrali-
zation. Sample statements from two freshly-
anointed senior ministers.
Diplomat-turned-politician Hardeep
Singh Puri, appointed petroleum minister,
said on his first day in office that petrol and
diesel should be brought under the goods
and services tax (GST) regime, something
that states have been opposing. Currently,
alcohol and petroleum products—such as,
petrol, diesel, natural gas and aviation fuel—
are subject to state-imposed and collected
value-added and sales taxes, which differ
from state to state. States are reluctant to
been expressed over tighter limits on state
borrowing or tardy central support during
times of disaster. Any attempt to reduce a
key source of state revenues under such cir-
cumstances is bound to face antagonism.
The second indication came from Arjun
Ram Meghwal’s federalism-busting state-
ments on his maiden day in office as law
minister. Meghwal, dashing hopes that coa-
lition pressures would restrain the new gov-
ernment, emphasized that it would continue
to pursue not only one-nation-one-election,
but also a uniform civil code. Pushback from
ally Janata Dal-United was instantaneous,
with a spokesperson clarifying that such a
decision could be implemented only
party has been put on
watch. Yet, the BJP, on the
could hurt
surface, seems to be disre-
garding these signals and
federalism and
trying to portray its return worsen tensions
to power with the support
of allies as a sign of its with states
invincibility and proof that
it has been redeeming its
pre-electoral promises. This message has
been echoed multiple times by various party
functionaries and supporters in the media
and civil society, perhaps in the hope that
repetitive iterations will convert it into an
irrefutable truth.
Attempts to project a muscular image—by
form the bedrock of its
political network.
If the government insists
on pursuing centralization,
the first casualty is likely to
be federalism. Two chal-
lenges lie ahead.
The first test for federal-
ism concerns new labour
legislation under which a raft of old labour
laws were consolidated under four regula-
tory codes on wages, industrial relations,
social security and occupational safety,
health and working conditions. Parliament
passed these four bills in 2020. However,
implementation is stuck at the level of states;
get 42% of the divisible pool; this is because
cesses and surcharges now comprise a sizea-
ble chunk of the pool but are kept out of
states’ reach. The other statutorily man-
dated transfers, grants-in-aid, have also
been shrinking. This is in addition to states
being asked to shoulder a larger share of
expenditure on central schemes, over and
above the Centre often delaying fund trans-
fers for centrally-sponsored schemes.
If ‘double engine’ is to be the driving force
behind federalism and economic growth,
then implicit in it is the assumption that the
Centre must maintain equitable and non-
partisan relationships with all states, and not
just with BJP-run or allied governments.
14 MONDAY, 17 JUNE 2024
NEW DELHI
What are you carrying
in the office tiffin?
Arzoo Dina
I
f, like many other office-goers,
you’ve been wondering what to
carry in your lunch tiffin in this
weather, you’re not alone. With
temperatures soaring above the
normal in some parts of the country and
monsoon arriving in others, the idea of
consuming foods that are high on spices
or overly rich can feel a bit too much. Sal-
ads might seem like a great swap for your
regular dal or rajma and rice, but they
aren’t often satiating enough. Worse, you
might find yourself reaching out for that
piece of brownie in the office canteen or a
plate of samosa after the meal.
Besides keeping the meals fun, tasty,
full of variety and, most importantly,
healthy in this weather, it’s also impor-
tant to keep replenishing those electro-
lytes while you try to juggle between
meetings and completing the to-do list.
Just chugging water isn’t enough, says
Delhi-based clinical nutritionist Lovneet
Batra. “Add soaked chia or basil seeds to
your liquids. Drinks like buttermilk, shi-
kanji, aam panna and bael juice are great
during this time of the year.”
And if you start getting bored of the
drinks, add ingredients like coconut, raw
mango, ginger, rice and curry leaves to
your food. Using raw mango, mint or
coconut chutney as accompaniments to
your lunch meal can also be beneficial.
A simple rule to follow for a healthy tif-
fin is simple: Just load it up with vegeta-
bles, lean proteins and brown or red rice.
“You can even make wholegrain wraps
filled with turkey, hummus, veggies and
pesto. Even a simple dish of curd rice will
do the trick of keeping you cool and full,”
suggests Riddhi Jadwani, nutritionist and
founder of Mumbai-based PositivEats
clinic. Drinks with soaked gond katira,
also known as tragacanth gum, will help in
boosting hydration, she adds.
Here are some easy lunch recipes that
are tasty and healthy.
RAW MANGO CURRY AND
KONKAN RICE BOWL
Serves 1
(Recipe courtesy: Lovneet Batra)
Ingredients
2 raw mangoes, peeled and grated
1 cup grated coconut
2-3 green chillies, chopped
1/2 tsp turmeric powder
1 tsp mustard seeds
1 tsp cumin seeds
1 tbsp chana dal
1 tbsp urad dal
1 sprig curry leaves
1 tbsp fresh ginger juice
1 tbsp coconut oil
Salt to taste
Fresh coriander leaves for garnish
A bowl of cooked Konkan red rice
Method
Peel and grate the raw mangoes. Set them
aside. In a blender, add grated coconut,
green chillies and turmeric powder. Blend
to a coarse paste without adding water. Set
aside. Heat oil in a pan over medium heat.
Add mustard seeds and let them splutter.
Add cumin seeds, chana and urad dals.
Fry until the dals turn golden brown. Add
curry leaves and sauté for a few seconds.
How every child’s first hero, dad, influences their career
Like mothers, fathers
play a crucial role as
influencers in the
journey of many
successful individuals
Hema Ravichandar
E
very child’s first hero is likely to be
their dad. As Australian poet Pam
Brown rightly says, “Dads are most
ordinary men turned by love into heroes,
adventurers, storytellers, and singers of
song.” The acknowledgments are plenty
whenever someone ruminates on the role
of a father in their success.
Of course, mothers are also darned
good at doing all of this—keeping the fire
of ambition going alongside the one at
home, and may even outscore dads—but
fathers do play a special role in shaping a
person’s career. Dads play a key role as
influencers, role models and fosterers of
ambition in the journey of many a success-
ful individual. Along the way, they also
make their fair share of sacrifices.
FAMOUS FATHER INFLUENCERS
Indra Nooyi, the former chief executive
officer of PepsiCo, has in her speeches,
BUSINESS OF LIFE
(clockwise from above) Add fibre-rich fruits to your snack box; and proteins and carbs like grilled fish and Zucchini Lemon Pasta to the lunch menu
Add the grated raw mango to the pan and
sauté for a few minutes until the mango
softens slightly.
Add the coconut paste to the pan and
mix well. Cook for another 3-4 minutes,
allowing the flavours to blend together.
Add salt and mix thoroughly. Add cooked
rice to the curry.
Now add the fresh ginger juice to the
mixture. Mix well and cook together.
Remove the pan from heat and garnish
with fresh coriander.
ZUCCHINI LEMON PASTA
Serves 1
(Recipe courtesy: Raveena Tau-
rani, chef and founder of
Mumbai-based Yogisattva
café)
Ingredients
For boiling the
pasta
1 tsp salt
300g brown rice spa-
ghetti
For pan-fried zuc-
chini mixture
1 tbsp olive oil
2 tsp minced garlic
VEDVATI ROHERA
2 green zucchinis, chopped
1 tsp salt
2 tsp smoked paprika
Pinch of black pepper
For pasta sauce
Pan fried zucchini
200g tofu
Zest of 1/2 lemon
Juice of 1/2 lemon
interviews and posts attributed much of
her success to her father, who was a bank
official in India. It is he who instilled in her
the values of hard work, perseverance and
integrity, which guided her throughout
her career. Nooyi often speaks about her
father’s influence on her leadership style
and decision-making, crediting him as her
inspiration.
R.K. Laxman, the legendary cartoonist
and creator of the iconic Common Man,
was not only a creative genius but also “a
wise and insightful father”, his son, Srini-
vas Laxman, says, fondly recalling his
father’s guidance that shaped his own
career as a writer, instilling in him a pas-
sion for storytelling. Laxman shared valu-
able insights about the power of satire,
inspiring Srinivas to hone his craft as a
writer.
Former President and space scientist
Dr. A.P.J. Abdul Kalam was also deeply
influenced by his father, Jainulabdeen,
who placed emphasis on education and
moral values. Kalam’s journey from dis-
tributing newspapers to contributing to
India’s defence programmes show-
cases the immense role of his father, from
his early years.
The many generations of young men
and women who join the Armed Forces,
following in the footsteps of their fathers
and grandfathers, exemplify the influence
of a dad. It’s not just a career they embrace
1/2 tsp salt
Pinch of black
pepper
Method
In a pot add water
and once it reaches
boiling consistency,
add your pasta along
with 1 tsp salt and let it cook.
In the meantime, in a pan, add
olive oil, minced garlic, 2 chopped zucchi-
nis and saute with some salt, smoked
paprika and a pinch of black pepper. Once
your zucchini is soft enough and can easily
be sliced using your spatula, switch off the
gas and allow this mixture to cool. In a
blender, add the pan fried zucchini, tofu,
juice of 1/2 a lemon, zest of 1/2 a lemon, salt
In the past, leaders like A.P.J. Abdul Kalam and Indra Nooyi have highlighted the key role
of their fathers in shaping personal and professional lives.
but a way of life itself, living and often
poignantly dying like their forbears.
More recently, young chess grandmas-
ter Gukesh Dommaraju’s coach has spo-
ken of the sacrifice made by his father Dr.
D. Rajinikanth.
An ENT surgeon, Rajinikanth stopped
WORKPLACE
and pinch of black pepper and blend.
In the same pan that you pan fried your
zucchini in, add the zucchini lemon sauce
to thicken on low to medium heat. Mix in
your cooked pasta once the sauce is thick
enough. Garnish with roasted almonds.
GRILLED FISH WITH
SWEET POTATOES AND
CAULIFLOWER RICE
Serves 1
(Recipe courtesy: Riddhi Jadwani)
Ingredients
1 small fillet of salmon or any other fish
200ml cauliflower rice
1 small sweet potato
Chopped herbs
Salt and pepper to taste
MINT
practising in 2017-18 to focus on his son’s
burgeoning chess career, accompanying
his son across the world for his tourna-
ments.
My own father played many roles. He
modelled professional work ethic, hard
work and perseverance for me—values
Be it warm afternoons
or rainy evenings, here
are some healthy lunch
and snack ideas to keep
you productive at all
times of the year
PHOTOGRAPHS FROM ISTOCKPHOTO
Seasoning of your choice
Method
Grill the fish in a dressing or seasoning of
your choice. Make the cauliflower rice.
Chop up the sweet potato, seasoned with
salt, pepper and any other spice blend that
you prefer.
Roast in the oven with a drizzle of olive
oil. Assemble all your ingredients together
and add a squeeze of lemon juice. Garnish
with chopped herbs.
THAYIR SADAM (CURD RICE)
WITH PAN FRIED CHICKEN
Serves 1
(Recipe courtesy: Ebaani Tewari and
Mathew Varghese, chefs and co-founders of
Mumbai-based eatery Kari Apla)
Ingredients
For curd rice
1 cup boiled rice
1 cup curd
Salt to taste
Sunflower oil for tempering
1/2 tsp mustard seeds
1 sprig curry leaves
1 chopped green chilli
1/2 inch chopped fresh ginger
For pan fried chicken
1 kg boneless chicken cut into pieces
1 cup rice flour
1 tbsp coriander powder
2 tbsp red chilli powder
1 tbsp ginger-garlic paste
1 sprig curry leaves (chopped)
1 tbsp lemon juice
1 tsp black pepper powder
GETTY IMAGES
that I believe are best imbued in child-
hood. He fostered ambition, always telling
me to strive for the top. At every turn in my
student life and career, it was he who
urged me on to choose the tougher, less
trodden path.
During the college union elections, I
had decided to settle for the vice presi-
dent’s post. He encouraged me to aim
higher—for the president’s post—to make
my mark in the college annals.
From that point on, there was no turn-
ing back for me—whether it was career,
leadership, academics, family or starting
LIVEMINT.COM
THE SNACK
BOX CORNER
I f you’re looking for healthy
yet filling snacks to munch on
throughout the day, Delhi-
based clinical nutritionist Lov-
neet Batra suggests whipping
up an easy yoghurt parfait. It
can be easily carried to work
with fresh fruits and pumpkin
seeds, she says. Or cucumber-
mint sandwiches, or jhal muri
made with puffed rice, chopped
vegetables and peanuts.
There are other swaps you can
consider. For instance, a bowl of
makhana or fox nuts are a great
option for healthy snacking.
However, for many it isn’t very
filling. “Then you can try hum-
mus with carrots, rice crackers
with peanut butter, energy balls
made with oats and nuts, or
roasted chickpeas seasoned
with spices,” says nutritionist
Riddhi Jadwani.
Potassium-rich foods can
help in preventing dehydration
and keeping you more alert,
suggests clinical nutritionist Ishi
Khosla. So, you can stock up on
dried fruits like raisins, apricots,
prunes and dates, as well as
snack on bananas, watermelon
and oranges. Cold soups like
gazpacho are ideal to carry to
work as well, she says.
Salt to taste
Oil to pan fry
Method
Mix the rice and curd together in a bowl,
ensuring there are no lumps. For temper-
ing, heat sunflower oil. Add in the mustard
seeds first, followed by curry leaves, gin-
ger and chilli. Add the tempering over the
curd rice and season with salt.
For the chicken, marinate it with all the
ingredients. Let it sit overnight. This can
be frozen in batches for later use.
Pan fry the chicken with 2-3 table-
spoons of oil (or as needed) for a few min-
utes, until golden-brown. Place it atop the
curd rice or have it on the side.
Write to us at businessoflife@livemint.com
a business, he was both my coach and my
champion. Later, my father and mother
sacrificed their retired rest to help with
my children, addressing my guilt pangs
when I was busy at work.
This will resonate with professionals
across the world, especially women, who
give up successful careers once they
become mothers as they are unable to jug-
gle the many demands on them.
In my own role as a coach, some of the
most poignant and fulfilling moments
have come when listening to individuals
talk about the role of their parents. It’s
often accompanied by a little lump in the
throat, a glimmer in the eye—especially
for the women. For men, it is a bit more
covert because the relationship with
fathers is itself, I daresay, more complex.
There’s an anonymous quote that pops
up on the internet every year around
Father’s Day that goes, “Anyone can be a
father, it takes someone special to be a
dad.” A dad’s influence, like a mother’s, is
not limited to the home—their values fol-
low us into our professional life, and shape
the stories we write for ourselves.
Hema Ravichandar is a strategic HR con-
sultant. She serves as an independent
director and advisory board member for
several organizations.
Write to us at businessoflife@livemint.com
 To Get All The Popular Newspapers.
Type in Search Box of Telegram

@sharewithpride
If You Want to get these Newspapers Daily at earliest

English Newspapers»»
Indian Express, Financial Express, The Hindu, Business Line, The Times of India, The Economic Times,
Hindustan Times, ET wealth, Business Standard, First India, Mint, Greater Kashmir, Greater Jammu, The
Himalayan, The Tribune, Brill Express, The Sikh Times, Avenue Mail, Western Times, Millennium Post, The
Statesman, State Times, The Pioneer, Hans India, Free Press, Orissa Post, Mumbai Mirror, Mid-Day, Deccan
Chronicle, Deccan Herald, Telangana Today, Financial Times, The Asian Age, The Telegraph, Oheraldo, Gulf of
Times, The New York Times, The Washington Post, Los Angeles Times, USA Today, The Wall Street Journal,
The Guardian, The Times

Hindi Newspapers»»
दै �नक जागरण, राजस्थान प�त्रका, दै �नक भास्कर, �दव्यभास्कर, �हंदस्
ु तान, नवभारत टाइम्स, �बज़नस स्ट�डडर्,

अमर उजाला, जनस�ा, द पायोनीर, राष्ट्र�य सहारा, प्रभातखबर, लोकस�ा

Others»»
Hindi & English Editorial, Employment News, Malayalam Newspapers, Tamil, Telugu, Urdu, Gujarati

Type in Search box of Telegram https://t.me/Magazines_8890050582 And

you will find a Channel named @Lalit712 join it and receiv
daily editions of all popular epapers at the earliest
Or
you can click on this link

https://t.me/sharewithpride