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105
Wednesday, May 1, 2024
IT Inc starts to worry if AI will RPG Group in for a makeover

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Think Ahead. Think Growth.
mint primer QUICK EDIT
IPOs by flexible Deepfake

workspace firms: distortion Worries of deepfakes spreading
Sharing to grow misinformation predate Indian
elections. Those who feared no
escape from them may have
BY MADHURIMA NANDY turned out prescient. A Parlia-
Flexible workspace provider Awfis Space Solutions recently got the mentarian from Karnataka of
market regulator’s nod for a public listing. More operators, which offer the Janata Dal (Secular) who has
modern office solutions, are likely to follow. What does this mean for been mired in a sexual-assault
the commercial office sector? Mint explains: controversy on account of a
video clip has claimed himself
Growing share to be the victim of a digitally-
Flex operators are one of the top drivers of office leasing crafted fake. Separately, home
Gross leasing* Leasing by flex operators (right-hand scale) minister Amit Shah has rejected
80 16 as fake a clip that seems to show
(in million sq. ft) him promising an end to reser-
60 12 vations for caste groups with
quotas; a police case has even
40 8 led to a few arrests of people said
to have opposition links. Foren-
20 4
sic tools exist to detect digital
concoctions, but damage could
be done if people do not or can-
0 0
2019 2020 2021 2022 2023 not discern what’s probably
*In Mumbai Metropolitan Region, Delhi-National Capital Region, Bengaluru,
true or false, which also explains
Hyderabad, Chennai, Kolkata, Kochi, Ahmedabad and Pune Source: CBRE India their unethical use for political
SARVESH KUMAR SHARMA/MINT manipulation. While untruths
Is Awfis’s IPO a starting Will the sector attract in usual times would not need to
1 point?
Awfis Solutions Pvt. Ltd is set to
2 more capital?
A number of flex workspace
be dignified with responses, big
distortions in a tech-warped
become the first co-working operators are expected to raise world are a serious menace.
operator in the country to launch long-term capital and onboard They can put even self-assured
an initial public offering (IPO) and more institutional investors. This politicians in defensive mode.
list on the stock exchange. As one would give operators access to Policing deepfakes may prove
of the largest co-working capital to scale up their business inadequate. At the end, we can
operators today, if the Awfis IPO faster. They are also set to attract
only hope that people at large
launch is a success, it would set a different kinds of investors—
precedent for more public listings including growth capital, private get more discerning and scepti-
in India’s young flex workspace equity, real estate, high-net-worth cal of what they see and hear on
sector going forward. Just as the individuals and family offices—as their digital devices. That’s not
launch of Embassy Office Parks well as venture debt and asking for too much, is it?
Reit’s IPO in 2019 opened the structured credit. As the firms
floodgates for multiple public grow profitably, investors will gain
listings by other office and retail confidence. In one of the largest
real estate investment trusts in the investments in the sector, Enam
country, the Awfis IPO is likely to
do the same for the shared
Holdings promoters with their
partners are set to buy 40% in
MINT METRIC
workspace segment. WeWork India for ₹1,200 crore. by Bibek Debroy
REUTERS
Kaka the footballer’s former wife,

3 Who else is looking at
launching an IPO?
WeWork India, IndiQube and Smartworks
Divorced him, though no cause for strife.
are expected to chart out an IPO roadmap
She rubbed the wound with some salt,
and start preparations in the next couple of Saying he was perfect to a fault.
years. These firms, which have multi-city
presence and are backed by institutional
For boring men, such is life.
investors, have shored up their revenues,
and are looking to grow further.
Investment bank Avendus Capital expects
at least four operators to list in 2-3 years. QUOTE OF THE DAY
Health is an orphan. Nobody
How will the overall What will fuel growth
4 office sector benefit?
The flex workspace sector is
5 in this sector?
The flexible workspace market is
wants to talk about health even
after the covid pandemic, where it
projected to reach 126 million sq. ft expected to outpace the traditional was acutely felt even as a matter of
by 2028, up from 61 million sq. ft commercial office sector, led by
in 2023, grabbing a larger share of the asset-light office expansion internal security. We have not
the overall office market, as per an strategies and work-from- learnt any lessons. We
Avendus Capital report. Flex anywhere policies. Modern office
operators are already one of the solutions will drive growth, as
continue to be in the same
top drivers of office leasing. As more firms explore managed, agile ‘all is well’ zone.
operators grow in size, go for workplaces. Both traditional and
public listings or raise institutional new-age companies, along with
funding, they will expand heavily the continuous influx of global
and take up more office space. capability centres (GCCs) will drive DR R.V. AsOkAN
Going ahead, the growth in office demand. Taking up space from a INDIAN MEDICAL
leasing beyond the top cities will flex workspace operator can lead ASSOCIATION CHIEF
also be led largely by flex to nearly 15-20% cost savings for a
operators. customer.
mint Election Bites
THE BIGGEST ELECTORAL

CONTESTS IN LOK SABHA ELECTIONS
The highest number of political parties that ever contested in a constituency
East Delhi (Delhi), 1996

28
East Delhi (Delhi), 1991
24
Chandigarh, 2019
23
Varanasi (Uttar Pradesh), 2014
22
South Delhi (Delhi), 2019
22
Nalanda (Bihar), 2019
22
New Delhi (Delhi), 1996
For more election-based
22 charts and historical
Secundrabad (Andhra Pradesh), 2014 analysis, visit the
infographics section on
22 the Mint app.
Data since 1962; excludes by-polls.
Data: Niti Kiran, Design: Satish Kumar Source: Trivedi Centre for Political Data, Mint analysis
PLAIN FACTS
Currency market mess

& old-school solutions
BY DEEPA VASUDEVAN
C
urrency markets are in turmoil. The US dollar keeps getting stronger; other currencies weaken in response. Interest
rate expectations have flipped: cuts are off the table, so much so that chances of hikes by the US Federal Reserve are
now being discussed. Meanwhile, US-China tensions continue to simmer. Conflict in West Asia threatens to disrupt
shipping routes and oil supplies. With so much uncertainty, it is not surprising that demand for dollars, both for safety and
returns, has shot up. But there is more going on than just geopolitics and interest rates.
Widening yield gap with US puts

pressure on currencies to depreciate 1 Yield Advantage: US
US' yield gap against other countries (percentage points) US YIELDS are now higher than they were at the beginning of
At start of 2024 Japan 2024, and are expected to stay higher for much longer.
Latest Taiwan Comparable yields of other countries have not risen to the same
extent. This places most countries—both advanced and
China
emerging—at a yield disadvantage. A widening yield gap puts
South Korea
pressure on their currencies to weaken. Hence, a wide swathe of
Canada
developed nations’ currencies have also slumped against the
Malaysia
dollar; emerging economies face a double whammy with risk-
UK aversion also coming into play.Countries are trying to combat
Australia the fall in different ways. India has intervened to support the
Indonesia rupee, Malaysia has urged businesses to repatriate and convert
India export earnings to boost the ringgit, and Indonesia
-4 -3 -2 -1 0 1 2 3 4 unexpectedly raised the policy rate to stabilize the rupiah. The
Yield gap is calculated as the yield on 10-year US Treasury minus the Bank of Japan has warned of possible rate hikes, and South
comparable yield in each country. Data is for the first trading day in Korea issued a joint statement with Japan and the US
January 2024 and 22 April 2024. Source: investing.com
expressing serious concern over the strong dollar.
2 Oil Price Tail Risk The currency impact of higher oil

prices is worse for large oil importers
OIL PRICES have been edgy since the oil producers’ cartel Change in currency against the US dollar in 2024 so far (%)
announced production cuts in March. However, it was the
Top oil importers
sudden direct conflict between Israel and Iran in April that -2 China
pushed the price of Brent crude above $90 per barrel. Prices -0.2 India
have moderated since then, but a rise in oil price remains a tail -6.07 South Korea
risk that no country can afford to ignore.
-8.9 Japan
For oil importers such as India, China and South Korea, the
-3.45 Euro area
impact is direct and obvious. Higher crude prices imply
higher import bills and a worsening trade deficit, which Top oil exporters
-0.03 Saudi Arabia
weaken the currency. But even oil exporters (Malaysia, US) are
affected by second-round effects: rising pump prices reduce -3.33 Russia
household purchasing power and push up prices of goods and -3.31 Canada
sectors in which crude is an input. A return of inflation is a -0.08 Iraq
potential nightmare for countries going to polls this year 0.01 UAE
(India, US), or for those struggling to restore growth to pre- Data till 22 April 2024. Source: investing.com
pandemic levels (China, Indonesia).
3 China Exposure Slower growth in China hurts currencies of

those with large exports to that country
CURRENCIES OF countries with large China Share of China in total exports in 2023 (%)
exposure are worse off due to China’s uncertain 35.2
34
recovery. This group of mainly Asian high-performers 30.7
had benefited hugely from China’s steady pre-covid
growth. Markets are justifiably anxious about their
future prospects now. The nature of China-reliance
19.7
varies: South Korea has invested in semiconductor 17.6 17.3
factories there, Japan recently restricted exports of 13.5
advanced chip-making equipment to China (yet China
makes up about 20% of its exports). Over 70% of the
exports decline in Taiwan in 2023 was attributed to a
drop in exports to China. In contrast, Brazil, which
exports a diverse basket of agricultural necessities and
Malaysia Vietnam Taiwan Australia
commodities, may be less vulnerable, and Australian Japan South Korea Brazil
firms have already found customers elsewhere. (But Source: Official government websites
both countries’ currencies have also faced pressure.)
Currencies are weakened by the

threat of fiscal profligacy 4 Fiscal Prudence
Exchange rate against the US dollar, indexed to COUNTRIES WITH significant amounts of dollar debt are
1 Jan 2024=100 (on inverted scale) most at risk when the US dollar strengthens, because a weaker
Brazilian real New govt confirms currency makes it harder to repay debt commitments. In
Indonesian rupiah free lunch scheme addition, large populist or non-productive government spending
that would threaten
98
fiscal deficit
weakens the exchange rate, even if it is funded by domestic debt.
That’s because such fiscal expansion diverts government
100
revenues away from productive expenditure. Thus the overall
debt score card has an impact on currencies, particularly for
102
emerging markets.Markets prefer fiscal prudence: a weaker fiscal
104 Media
stance and the resulting government borrowing pushes the
reports of currency down. For instance, the Brazilian real dropped sharply
106 fiscal target in April when the government proposed new rules to loosen
dilution budget deficit targets. In Indonesia, when the incoming
108 government announced a free school lunch scheme that would
1 Jan 2024 25 Apr 2024 increase borrowings, it led to huge foreign outflows in the bond
Source: investing.com
market that pushed the rupiah to a four-year low.
5 Economic Growth Sustained economic growth is

associated with greater exchange
MARKETS LIKE economic growth, especially if it’s strong, (in %)
steady and sustainable. High-growth economies attract foreign 20 Period of high
GDP growth growth and rupee
capital. For capital-scarce emerging economies, these inflows appreciation
fund investments and projects that generate jobs and incomes, 10
further enhancing growth and attracting more capital flows. The
downside is that dollar inflows put pressure on the currency to 0
appreciate. Recollect how the Indian rupee gained almost each
year during 2003 to 2007, riding on five years of boom: we have -10
neither seen such growth nor such appreciation since then. The Rupee
reverse is true, too: currencies of economies with uncertain -20 depreciation
growth outlook tend to depreciate. For example, China has
continually weakened its yuan recently under pressure from a -30
stronger dollar and weak growth. The lesson is that economies 1991-92 2022-23
seeking exchange rate stability should focus on growing at a 2020-21 not shown due to the pandemic-related skews.
steady clip. Growth is a panacea for most emerging market ills. Source: Reserve Bank of India, Central Statistics Office
The author is an independent writer on economics and finance.
PARAS JAIN/MINT
PEANUTS by Charles M. Schulz

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IT Inc starts to worry if AI RPG exits comfort

zone as scion steers
DON’T MISS
AP
will hit reputation, profit a quiet makeover

Cognizant, Capgemini, Accenture point to risks; domestic IT firms may follow Ranjani Raghavan &
Satish John
AstraZeneca admits rare blood
Varun Sood clot risk from covid vaccines
[email protected] WORRY LINES MUMBAI
British drugmaker AstraZeneca admitted
A
BENGALURU nant Goenka, heir to the covid vaccines could cause blood clots but
Tagging AI and Gen AI as potential risks signals the rising role of these $4.4 billion RPG Group, said these were “extremely rare” after more
B
ias, errors and halluci- disruptive technologies at technology leaders. has a personality dis- than 50 such cases were reported in the UK
nations—the techno- tinct from his father, Harsh in patients administered jabs that had been
logical marvel that is USE OF AI may present business, financial, legal Goenka, and grandfather, the made by the Serum Institute of India. >P11
Generative AI has seen and reputational risks. Failure to conform to this evolving land-scape may late Rama Prasad Goenka.
it all, while writing result in legal liability, regulatory action, or reputational harm. He has built himself a repu-
code, composing music, and tation as more of a consolidator India’s number of employed
conjuring up images. Mean- for the RPG Group, a conglom- rose 5% to 580 mn in 2022-23
GenAI WILL transform numerous jobs and
while, at some of the world's larg- erate that had grown through Vice-chairman of RPG Group The number of people in jobs grew
create new ones; from a societal point of view, GenAI threatens to
est technology services firms, exacerbate social divides and raises challenges for democracy.
aggressive acquisitions. But the Anant Goenka. nearly 5% to 580 million in the financial year
new concerns are rising: risks to third-generation scion, after 2022-23, according to estimates being
profit, reputation harm, and legal about a decade-and-a-half at But his strategy of taking prepared by the Reserve Bank of India (RBI),
liability. the group, may finally be ready fewer risks appears to be two persons aware of the development
GenAI ADOPTION by competitors could reduce said. >P2
For the first time since the ability to obtain favourable pricing and impact our overall economics to change stripes. changing. “Certainly, going
launch of ChatGPT took the for the services or solutions we offer. RPG Group, which Rama forward, we hope to be a little
world by storm, the world’s larg- Prasad Goenka founded in more acquisitive than we have
est IT services firms, led by l This is the first time the three firms have highlighted AI risks in annual reports.
l Accenture claims to have $1.1 bn in GenAI projects; TCS says it has $900 million.
1979, was often critiqued in the in the past,” Anant Goenka said IMF raises Asia-Pacific growth
Accenture Plc., Cognizant Tech- 1980s and ’90s for the diversi- in an interview with Mint. outlook to 4.5% for 2024
nology Solutions Corp. and Cap- fied businesses that it had accu- “I think of capital allocation The Asia-Pacific region will grow less slowly
gemini SE have flagged the rise of reports in the coming months. innovations, AI presents risks and with whom we do business could mulated through aggressive as 70-20-10, where 70% of the than previously feared, the International
AI and GenAI tools as a risk factor Nasdaq-listed Cognizant, challenges that could adversely result in unintended consequen- acquisitions and debt. capital is used to grow your Monetary Fund (IMF) said on Tuesday. It has
in their annual reports. which follows a January-Decem- impact our business,” the com- ces. We plan to incur significant His grandson Anant, 40, was core businesses, 20% into adja- raised the regional growth forecast for this
Tagging AI and Gen AI as ber financial year, cited potential pany said. development and operational elevated last October as vice- cent businesses, and 10% of year to 4.5%, up 0.3 percentage points from
potential risks signals the rising risks associated with the rise of After OpenAI released costs to build and support our AI chairman of the conglomerate capital into high-risk, high-re- six months earlier. >P2
role of these disruptive technolo- AI in its annual report released in ChatGPT in 2022, Meta, Google capabilities to meet the needs of spanning tyres, chemicals and turn segments,” said Goenka.
gies at technology leaders. This February. and Microsoft have followed with our clients,” said Cognizant. software, and engineering, Over the past six to eight
may also prompt homegrown IT “Our use of AI Technologies similar tools. Meanwhile, Apple is “Failure to appropriately con- procurement and construction months, the group has made a FirstCry updates disclosures,
firms like Tata Consultancy Ser- may not be successful and may in talks to build Google’s Gemini form to this evolving landscape (EPC) businesses. few nimble moves, seeding two files listing papers again
vices Ltd, Infosys Ltd and HCL present business, financial, legal AI engine into the iPhone. may result in legal liability, regu- Anant Goenka likes to keep a ventures in the e-commerce
Brainbees Solutions, parent of omnichannel
Technologies Ltd to flag similar and reputational risks,” said Cog- “The development, adoption, latory action, or brand and repu- low profile, reflective of his (Tyres and More) and telemat- retailer of baby and mother care
risks, at least two industry execu- nizant. and use of AI technologies are still tational harm,” said Cognizant, conservative approach to busi- ics spaces (Taabi). The con- merchandise, FirstCry, resubmitted its draft
tives said on condition of ano- “We increasingly use AI-based in their early stages and ineffec- which saw its revenue slip 0.4% to ness. He has been focused on glomerate has also made fresh prospectus with Sebi, complying with the
nymity. These companies, which technologies, including GenAI, in tive or inadequate AI develop- $19.35 billion in the year ended improving the group’s finan- inroads in the climate sector. regulator’s request to refile its application
follow the April to March finan- our client offerings and our own ment or deployment practices by cials even as he steadily due to inadequate disclosure of KPIs. >P7
cial year, issue their annual internal operations. As with many us, our clients, or third parties TURN TO PAGE 6 expanded into adjacencies. TURN TO PAGE 6
Monitoring, internal controls to Services cos’ registrations

check MFs’ front-running soon soar in FY24, industry lags
Priyanka Gawande to-face communications, Gireesh Chandra Prasad
[email protected] including out-of-office interac- [email protected] Racing ahead
MUMBAI tions, during market hours. NEw DELHI Number of companies registered
This will be made effective after FY23 FY24 % change
T S
he Securities and implementation of the institu- ervices sector raced Services 102,870
Exchange Board of India tional mechanism by asset ahead in company regis- 131,708 28
has approved amend- management companies. trations in the just-ended
ments to its mutual fund regu- The regulator asked industry financial year, reflecting the 11,376 -5.5
Agriculture
Recruiters say candidates with digital skills are most wanted in EV, lations aimed at establishing an body Association of Mutual rapid formalization of a seg- 10,751
retail, manufacturing, core sector firms and FMCG industry. REUTERS institutional mechanism to Funds in India (Amfi) to specify ment with few entry barriers. 44,229
Industry -3.1
curb front-running and fraud- detailed standards for such While services accounted for 42,850
Retail, auto, new ulent transactions.

The markets regulator
floated a consultation paper in The markets regulator floated a
institutional mechanisms.
The regulator also approved
streamlining of prudential
71% of the 185,300-plus new
companies registered in FY24,
industry made up less than a
Share of
service sector 63 63 65 71
hiring hotspots
this regard last May after notic- consultation paper in this rules for passive mutual fund fourth, while the farm sector in new
ing a significant spike in the regard in May last year. REUTERS schemes regarding exposure to accounted for about 6%. companies
number of front-running and the securities of group firms. The latest figures for the ser- registered FY21 FY22 FY23 FY24
insider trading activities. sist of enhanced surveillance Currently, mutual fund vices sector registrations are a (in %)
as IT slows down
Source: Ministry of corporate affairs
Front-running refers to trad- systems, internal control pro- schemes are not allowed to sharp increase from 63% in
PARAS JAIN/MINT
ing in a stock or any other cedures and escalation pro- invest more than 25% of their FY21 and FY22 and 65% in
financial asset while having cesses to identify, monitor and net asset value in a sponsor’s FY23, corporate affairs minis- facturing under the Atmanir- Another driving factor for
Devina Sengupta most to close such a position, inside knowledge of a future address specific types of mis- group companies. This restricts try data showed. Within the bhar Bharat initiative, the ser- increased organic interest in
[email protected] indicating the protracted sift- transaction. In February 2023, conduct including front run- passive funds to effectively rep- services sector, community, vices sector still contributes the services sector is the
MUMBAI ing process at companies. Sebi restrained the former ning, insider trading, misuse of licate the underlying index in personal and social services over half of India’s economic increasing share of digitally
IT’s loss clearly has been the chief dealer of Axis Mutual sensitive information, etc,” cases where the group compa- clocked the sharpest growth output. delivered services, which has
T
he slowdown in IT sector other industries’ gain. Recruit- Fund, Viresh Joshi, and 20 Sebi said in a statement on nies of a sponsor comprise with 49,241 new registrations, “This, coupled with the fact witnessed exponential growth
hiring has pushed ers say candidates with digital other individuals from access- Tuesday. more than 25% in an index. nearly double the levels in the that services sector has the low- in global exports,” said Anjali
recruiters to bank on skills are most wanted in retail, ing the securities markets in a On the requirement to This also puts such asset preceding year. est barrier to entry compared to Malhotra, partner-regulatory
other industries like retail, auto EV (electric vehicles) part of the case of alleged front-running of record all communication by management companies at a Experts said that while the industry or agriculture, we at tax and advisory firm Nangia
and manufacturing to make up auto business, manufacturing, the trades of Axis Mutual Fund. dealers and fund managers, central government has been have witnessed an uptick in
for lost business. The develop- core sector companies, and in “The mechanism shall con- Sebi exempted recording face- TURN TO PAGE 6 encouraging large-scale manu- new company registrations. TURN TO PAGE 4
ment has effectively swivelled the FMCG (fast-moving con-
the job market 180 degrees sumer goods) industry.
from an employee’s market to Demand for junior to middle
that of the employer.
“About 18 months ago, 80%
of our placements were from
management is seeing the
maximum flux. This is because
IT firms often get their younger
Decline of remote work spells gloom for holiday villas
the IT sector; now it is 40%,” workforce from campuses, and
said Alok Kumar, president of companies from other sectors Varuni Khosla this shift. Additionally, the means that the new supply guest experience has dramati-
Manpower, a subsidiary of are now preferring employees [email protected] launch of a large number of coming in is very large,” he said. cally improved,” he said.
recruitment firm Manpower- with some years of work in the NEw DELHI high-quality villas in the mar- “Obviously, demand has also Parulekar said smaller villas
Group. “We have shifted focus; IT sector. ket has also played a role, grown but supply has outpaced with two or three bedrooms
O
60% of our permanent place- To be sure, job switches nce characterized by founders of StayVista and Saf- it by 15-20% of what it was tend to have higher weekday
ments are now on the back of remain at a moderate 20-30% long stays during the fronStays said. Together, these before the pandemic,” added occupancy due to small fami-
retail and manufacturing.” and none of the other indus- pandemic-induced companies manage around Parulekar. “From 60-70% lies taking short breaks. How-
Anshuman Das, chief execu- tries are dishing out steep move to remote work, the trend 1,100 holiday homes and vaca- occupancy in the pandemic, ever, occupancy in larger villas,
tive and co-founder of Career- offers. for villa rentals is now evolving tion rentals across the country. the overall villa occupancy at suitable for big families, typi-
net, a talent solutions provider, “The movement is largely into a new normal. Even as “We are seeing a change in our properties now stands at cally drops to about 40% as it's
said that a middle management from small and mid-sized IT occupancy rates have shrunk the booking patterns now. Pri- 30-40%.” harder for such groups to take
position in the top four IT firms firms, rather than from the significantly from their peak, marily, holiday homes are The good news is that the weekday breaks.
takes almost three months to more established ones, who are operators remain bullish on the where people go during, as the quality of supply is now “We used this opportunity to
close these days, compared to a unwilling to change their firms segment. name suggests, holidays,” said improving, which means the churn our portfolio. We also
month less than two years ago. now,” Aditya Narayan Mishra, Previously, these second Amit Damani, co-founder of Even as occupancy rates have shrunk significantly from their traveller experience is getting began to focus on the higher-
“For a job posting in the mid- chief executive of Ciel HR Ser- homes and villas were occupied StayVista. “Prior to the pan- peak, operators remain bullish on the segment. better and choices are more, he end and signature properties.
dle management level of IT vices, said. “Those fearing for about 15 days a month on demic, we saw an average of added. We reduced 30% of our supply
sector, there are more than 100 retrenchments are in a rush, average, but now they see seven nights a month occu- Devendra Parulekar, “Post covid, a lot of people “Earlier there were older vil- actively but despite that, for the
applications of candidates who but IT services companies are occupancy of just nine days a pancy at our villas. During co-founder of SaffronStays, made investments in villas. The las in the market but now the last four years, we grew 45-50%
have more than eight years of in no hurry.” month, according to the top covid, this number shot up dra- agreed. He said the numbers supply base grew tremen- newer supply has better aes- in terms of gross revenue,” he
work experience,” added Das. Ciel HR Services has seen a two operators in the industry. matically to reach 15-17 nights a may seem lower overall, but this dously. Take Goa, for instance. thetics, is more Gen-Z relevant, added.
About a year and a half ago, Das The return to full-time office month. But now it has stabi- should not be seen as a sign that Every district now has over Instagram friendly, and the
had to line up 20 candidates at TURN TO PAGE 4 work is a major factor behind lised at 9-10 nights for a villa.” the business is not growing. 40-50 villas, which effectively architects are great, so the TURN TO PAGE 6
02 WednesdAy, 1 MAy 2024
AhMedAbAd ECONOMY & POLICY LIVEMINT.COM
India rejects Sikh

plot, slams Canada
No of people employed
over separatists rose 5% to 580 mn in 2022-23
Bloomberg
[email protected]
The growth in employment numbers may be the outcome of low base of the pandemic years
I
ndia dismissed a Washington
Post report alleging senior
members of the country’s The IMF expects India to grow
intelligence agency approved a Dhirendra Kumar demic. Therefore, it cannot be consid- at 7.8% in FY24.
plot to kill a US-based Sikh [email protected]
On the job ered as momentum. Instead, it indicates
REUTERS
activist, while on the same day

raising concerns about separa-
NEW DELHI KLEMS data by RBI reveals there
were 30 million more jobs in 2022-23.
that our economy is recovering from the
covid year,” Sen said. IMF raises
T
tist sentiments made at a Sikh he number of people in jobs Employment (in million) Prof. N.R. Bhanumurthy, a noted
event in Canada.
The newspaper “makes
grew nearly 5% to 580 million
in the financial year 2022-23, 522
544 553
580 economist and vice-chancellor of Dr
B.R. Ambedkar School of Economics
Asia-Pacific
unwarranted and unsubstanti-
ated imputations of a serious
matter,” Randhir Jaiswal, a
Justin Trudeau, prime minister,
Canada. AP
according to estimates being
prepared by the Reserve
Bank of India (RBI), two persons aware
471 483 University, Bengaluru (BASE Univer-
sity), said, “The estimated increase of
around 27 million between the two
growth
spokesman for the ministry of
external affairs, said in a state-
plot, is designated a terrorist by
India for his involvement in a
of the development said.
The growth numbers, quite likely the
years is a significant number. This shows
the number of jobs created during that outlook to
ment on Tuesday. A high-level Sikh separatist movement outcome of the low base of the pan- period, which is important. This
committee set up by the gov-
ernment is investigating the
seeking an independent state
of Khalistan.
demic years, will form part of RBI's
KLEMS database, based on an analysis
increase is significant because both the
organized and unorganized sectors
4.5% for ’24
matter and the “speculative and The Post report came the of the Periodic Labour Force Survey were severely affected during the covid
irresponsible” comments same day India lashed out at (PLFS) data for the same period. pandemic.” Rhik Kundu
2017-18 2019-20 2021-22
aren’t helpful, he said. Canada for not doing enough to The KLEMS data, which provides “This increase indicates that many [email protected]
2018-19 2020-21 2022-23*
The Washington Post clamp down on separatist sen- insights into five key inputs in produc- In FY22, agriculture and allied sectors activities have returned to normal, espe- NEW DELHI
*Estimate Source: RBI KLEMS Database
reported on Monday that the timents at an event attended by tion—capital (K), labour (L), energy (E), accounted for 237 million jobs. PTI cially in contact-intensive sectors,
T
SATISH KUMAR/MINT
former head of Research and Prime Minister Justin Trudeau materials (M) and services (S)—is which began reviving in 2022-23,” he he Asia-Pacific region
Analysis Wing (RAW), India’s on Sunday. expected to be released by the RBI in a According to the initial findings, the industries involved in manufacturing said. will grow less slowly
spy agency, and other senior India summoned Canada’s couple of months. number of employed people grew by refined petroleum products. The plas- The PLFS data encompasses all sec- than previously feared,
ranking officials, had approved deputy high commissioner on KLEMS gives granular data on the about 30 million from 553 million in tics industry generated 1.32 million jobs. tors, covering a wide spectrum of the International Monetary
the alleged plan to kill a Sikh Monday to lodge its protest inputs used in the production process 2021-22, according to the KLEMS data- Pronab Sen, a noted economist and employment types such as organized, Fund (IMF) said on Tuesday,
activist on American soil last after separatist slogans were and the output generated by an base for that period. former country director for the unorganized, self-employed, reflecting an improved out-
year. The report was based on shouted at the event in Toronto economy, while PLFS pro- India has seen a growth of India Programme of the and agricultural workers. look for two of the region’s
interviews with several officials where Trudeau spoke. vides information on the 110 million jobs in the five International Growth Cen- According to the KLEMS largest economies, China and
in the US, India and elsewhere
who were not identified.
“This illustrates once again
the political space that has been
size and composition of
the labour force, employ- mn110
Growth in number
years from 2017-18, when
it was 470 million, to
tre (IGC), said, “It is possi-
ble, considering that the 553 mn
The number of
database, the total
employment generation
India.
“The outlook for Asia and
India’s investigation com- given in Canada to separatism, ment trends across differ- 2022-23, said one of the previous year was the in India has surged to 553 the Pacific in (calendar year)
mittee, which hasn’t made its extremism and violence,” ent sectors and demo- of jobs in five yrs two persons mentioned covid year, during which employed persons million in 2021-22, com- 2024 has brightened: we now
findings public yet, found India’s ministry of external graphic groups, and from 2017-18 above. employment was seriously in 2021-22 pared to 471 million in expect that the region’s econ-
rogue operatives not autho- affairs said on Monday. unemployment rates. As per KLEMS data for affected, leading to an 2017-18. omy will slow less than we pre-
rized by the government were “Their continued expres- KLEMS data is released 2021-22, the highest 237 mil- increase in the unemploy- This translates to 82 million viously projected as inflation
involved in the plot, Bloom- sions not only impact India-Ca- after the PLFS data, which is usu- lion jobs were created in agricul- ment rate to 9%, compared with more jobs. pressures continue to dissi-
berg News has previously nada relations but also encour- ally published in October each year. ture and allied sectors, followed by 68 our normal rate of 3%.” Queries emailed to the spokespersons pate,” IMF said in a blog post
reported. age a climate of violence and Both are vital to understanding different million jobs in construction and 63 mil- “These are not new job opportunities, of the labour and employment ministry titled Asia's Growth and Infla-
Gurpatwant Singh Pannun, criminality in Canada to the aspects of the economy and formulating lion in trade. but rather the reopening of job opportu- and RBI remained unanswered at press tion Outlook Improves, but
the intended victim in the US detriment of its own citizens.” suitable policies. The lowest 324,000 jobs were in nities that were closed during the pan- time. Risks Remain, which was
released on Tuesday.
China is the largest econ-
omy in the region and India
Core sector growth falls again in March Govt says it faces ‘uphill task’ on the third-largest, coming in
after Japan.
“We have raised our
Subhash Narayan
[email protected]
uniform healthcare charges crude oil by 2%. Although both
natural gas and steel produc-
regional growth forecast for
this year to 4.5%, up 0.3 per-
centage points from six
NEW DELHI tion witnessed month-on- months earlier, after a 5%
month decline, they remained Somrita Ghosh Currently only 12 states and expansion in 2023. The revi-
I
ndia's core infrastructure in positive territory, indicating [email protected] seven UTs have implemented sion reflects upgrades for
sectors, comprising 40% of potential growth in the com- NEW DELHI the Clinical Establishments China, where we expect policy
industrial output, grew by ing months. (Registration and Regulation) stimulus to provide support,
W
5.2% in March, slower than the The contraction in refinery ith as many as 16 Act, 2010. and India, where public
previous month, primarily due products (-0.3%) significantly states failing to It has not been adopted by investment remains an impor-
to lower crude oil production impacted the production implement the 16 states—Andhra Pradesh, tant driver, making it the
and contraction in refinery index of the eight core indus- Clinical Establishments (Reg- Chhattisgarh, Goa, Gujarat, world’s fastest-growing major
products and fertilizers, tries, given its highest weight- istration and Regulation) Act, Karnataka, Kerala, Madhya economy,” the IMF report
according to data released by age of 28.04%. Refinery prod- 2010, the Central government Pradesh, Maharashtra, Mani- said. “In a still subdued exter-
the ministry of commerce and uct growth remained moder- has come up with a pricing pur, Meghalaya, Nagaland, nal environment, robust pri-
industry on Tuesday. ate for much of FY24, spiking template for all states. How- Odisha, Punjab, Tamil Nadu, vate consumption will remain
The eight core infrastruc- only in September and ever, the states have expressed Tripura, and West Bengal. the main growth driver in
ture sectors—coal, crude oil, The eight core infrastructure sectors, including coal, crude oil, November. their concern that fixing a Only the states and UTs Asia’s other emerging market
steel, cement, electricity, fer- had grown by 7.1% in February, hitting a three-month high. AFP “Fertilizers production wit- price range may not be feasi- States have stated that fixing a where the clinical establish- economies. The Asia growth
tilizers, refinery products, and nessed a decline, considering ble, according to the Union price range for healthcare may ments act 2010 is applicable— forecast for 2025 is unchanged
natural gas—had grown by under review. cement sectors bucked the this is a non-sowing season health ministry. not be feasible. MINT Uttar Pradesh, Bihar, Hima- at 4.3%,” it added.
7.1% in February, hitting a While refinery and fertiliz- trend, with double-digit and and beginning of harvest, In a 37-page affidavit filed in chal Pradesh, Telangana, Anticipating increased eco-
three-month high. This figure ers output contracted by 0.3% high, single-digit growth, when typically there is little the Supreme Court on Mon- failure to enforce the 14-year- Uttarakhand, Andaman and nomic activity in the ongoing
was revised upward from an and 1.3%, respectively in respectively. In March, elec- demand. The energy basket of day, a copy of which has been old Clinical Establishment Nicobar, and Mizoram— fiscal (FY25), the IMF on 16
earlier estimate of 6.7%. March, crude oil , natural gas tricity (weightage of 18.75% in crude, gas and refinery prod- seen by Mint, the ministry said (Central Government) Rules, showed willingness for rounds April raised India’s FY25 GDP
According to ministry data, and steel produc- the index) drove ucts showed different tenden- that many of the states have which are aimed at enforcing of discussions with stakehold- growth forecast to 6.8% from
production growth across the tion also showed In March, growth in core cies. Natural gas was up by their own health schemes standard charges for various ers and invited the guidance/ its earlier forecast of 6.5%.
eight core industries stood at signs of slowing. electricity drove industries' out- 6.3% while refinery products while many people are cov- medical treatments and proce- collaboration of MoHFW in The IMF’s upward revision
7.5% for FY24, the slowest in While crude pro- growth in core put, posting an were down marginally due to ered under the Ayushman dures. this regard to proceed for- of the FY25 GDP growth fore-
three years. However, FY24 duction declined industries' 8% increase in lower growth in exports. Bharat scheme. “One size fit approach may ward. cast came after similar revi-
outperformed most years of month-on- production. Crude production was up by The apex court had earlier not be feasible. This seems to Medical bodies and hospital sions were made by several
output, posting
the Modi administration, bar- month from 7.9% Cement surged around 2%,” said Madan Sab- asked the ministry to hold a be an uphill task for recom- associations expressed their others, including the World
ring FY22 and FY23, when to 2%, natural gas an 8% increase in 10.6% following a navis, chief economist, Bank of meeting with all the state mendation of rates,” the min- satisfaction with hearing. Har- Bank, Asian Development
growth rates were at 10.4% and production fell production robust 9.1% Baroda. health departments after find- istry stated in its affidavit. ish Salve, senior advocate Bank and S&P Global.
7.8%, respectively. from 11.3% in Feb- growth in Febru- “The core sector numbers ing glaring discrepancy in the After the Supreme Court’s appearing for NATHEALTH - In its April edition of the
Core sector growth stood at ruary to 6.3% in ary, according to can mean growth of 5-6% in prices of medical treatments direction in February, the Healthcare Federation of India World Economic Outlook, the
4.2% in March 2023, benefit- March. Steel production also the ministry data. Index of Industrial Production across government and pri- health ministry called for a vir- in this case told Mint that it is IMF said it expects India's
ing from a lower base, and con- declined from 9.1% to 5.5% Additionally, natural gas (IIP) for the month,” Sabnavis vate medical facilities. tual meeting with states which not for the courts to determine FY26 (next fiscal) GDP growth
tributing to higher growth in during the period. production expanded by 6.3%, added. Core sector output The Court had, in February, was chaired by the secretary the price of medical services, it at 6.5%. IMF expects India to
the index during the month However, electricity and coal by 8.7%, steel 5.5%, and contributes 40.27% to the IIP. strongly criticized the Centre’s Apurva Chander in March. is the duty of the legislature. grow at 7.8% in FY24.
U’khand licensing authority

m MINT SHORTS important”, the Supreme Court on Tuesday questioned
the Enforcement Directorate (ED) on the timing of Delhi
chief minister Arvind Kejriwal’s arrest ahead of the gen-
US consumer confidence
at its lowest since July 2022 draws SC flak in Patanjali case MINT
CORRECTIONS AND
CLARIFICATIONS
eral elections in the excise policy-linked money launder- AP New Delhi: The Supreme Mint welcomes comments,
JD(S) suspends Revanna from ing case. The bench also flagged the gap between initia- Court on Tuesday rapped the suggestions or complaints
tion of adjudication proceedings in the case and the Uttarakhand State Licensing about errors.
party over alleged sex scandal arrest. PTI Authority for its “inaction” for
Readers can alert the
Bengaluru: JD(S) on Tuesday suspended its Hassan MP six years in the misleading
newsroom to any errors in the
Prajwal Revanna from the party with immediate effect advertisements case involv- paper by emailing us, with your
PTI over an alleged sex scandal G7 nations pledge to reduce ing Patanjali Ayurved Ltd, full name and address to
involving him. The action saying it has to be honest with
came minutes after the party
reliance on Russia in N-push the court if it wanted “sympathy and compassion”. PTI
[email protected].
core committee that met in Nations from the Group of Seven (G7) have agreed to It is our policy to promptly
respond to all complaints.
Hubballi recommended his work to reduce their reliance on “civil nuclear-related Readers dissatisfied with the
suspension to its national goods” from Russia, as major industrialized nations work Security forces neutralize 10 response or concerned about
president and former PM, H. to reset their energy plans while isolating Moscow. G7 US consumer confidence fell in April to the lowest
D. Deve Gowda, who is also REUTERS energy ministers said their since mid-2022 as Americans’ views of the labour
Maoist rebels in gun battle Mint’s journalistic integrity may
write directly to the editor by
Revanna’s grandfather. PTI countries will engage in a market and their outlook for the economy deterio- Bhubaneswar: Security forces killed at least 10 Maoist sending an email to
multilateral effort to promote rated. The Conference Board’s gauge of sentiment rebels in a gun battle in the forests of central India on [email protected]
a diversified fuel supply chain decreased to 97 from a downwardly revised 103.1 Tuesday, police said, the second major encounter this Mint’s journalistic Code of
SC questions ED on the timing free from Russian influence, in March, data out Tuesday showed. The figure month amid national elections. Fighting in the Conduct that governs our
as per the closing statement marked the third straight fall and trailed estimates Abujhmad area of the Maoist-riven Bastar region fol-
of Delhi CM Kejriwal’s arrest from a meeting in the Italian in a Bloomberg survey of economists. BLOOMBERG lowed a 16 April clash in which 29 rebel fighters were
newsroom is available at
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New Delhi: Terming life and liberty as “exceedingly city of Turin. BLOOMBERG killed in a nearby district. REUTERS
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m MINT SHORTS
Euro zone inflation steady in
UltraTech gears up to beat peers
April, ECB rate cut likely Harsha Jethmalani
Driving expansion annum (mtpa), outperforming the indus- be overshadowed. In this calendar year
Euro zone inflation held steady in April but a crucial indi- [email protected]
UltraTech's ongoing capacity addition
try’s estimated high single-digit growth. so far, UltraTech shares have declined
cator on underlying price pressures slowed, solidifying spree is expected to boost long-term Thus, indicating continued market share nearly 5%. “While on-track completion
I
an already strong case for the European Central Bank to ndustry leader UltraTech Cement volume gains for UltraTech. The management of capex plans and efficiency focus is
cut interest rates in June. The ECB all but promised a rate Ltd’s robust operating performance Installed capacity as of FY24 Planned till FY27 expects some slowdown in H1FY25 heartening, the weak sector fundamen-
cut on 6 June, provided there is no nasty surprise in wage in the March quarter (Q4FY24) Grey cement capacity in India (in million tonnes demand amid the elections, followed by tals and risk of earnings downgrade in
or price developments, and Tuesday’s data remain con- brings comfort amid severe pricing per annum) the monsoon, but it is likely to be tempo- FY25 are issues of concern,” said
sistent with the path the bank saw in its last round of pro- pressures. Lower costs, mainly due 45 rary. In FY25, the cement industry is Nuvama Research report.
jections in March. Inflation in the 20 countries sharing to operating leverage, gave its consoli- 40 expected to clock growth of 7-9% and the Meanwhile, UltraTech targets turn-
the euro currency was 2.4% in April, the same as in March dated Ebitda a shot in the arm. Ebitda management expects Ultra- ing net cash positive by
35
and matching expectations for a steady reading in a Reu- surpassed the Street’s expectations and
30
Tech to continue to outper- BUILDING FY25-end, excluding the
ters poll of analysts. Meanwhile core inflation, filtering rose to a multi-quarter high of ₹4,114 form the industry. Given the UP Kesoram acquisition. But
out volatile food and energy prices as well as alcohol and crore in Q4FY24. 25 company’s chase for indus- this goal could get further
tobacco, a key measure watched by policymakers to Going into FY25, profitability pros- 20 try-leading volume growth, THE earnings delayed. “We are building in
gauge the durability of price pressures, slowed to 2.7% pects appear bright. In April, cement the elevated capital expendi- narrative in the
sector is driven by
higher capex for FY25 and
15
from 2.9%, data from Eurostat, the EU’s statistics agency prices rose in the southern, eastern, and ture (capex) intensity is not volume growth and FY26 and with Kesoram
showed. Closely watched services inflation, stuck at 4% Maharashtra markets, the management 10 entirely surprising. In FY24, capacity additions acquisition, expect the com-
since the start of the year, eased to 3.7%. REUTERS said. During this financial year, barring 5 UltraTech incurred around pany to remain net debt pos-
the election and monsoon blip, the 0
₹9,200 crore and ended the ULTRATECH itive compared to our earlier
expects slowdown
UltraTech management expects a North Central East West South year with domestic grey due to elections and assumption of debt free by
Note: Data excluding Kesoram Industries
largely stable pricing environment. capacity of 10.75mtpa
cement capacity of 141mtpa. monsoon, but that FY25,” cautioned Centrum
That, accompanied with lower fuel costs UltraTech targets turning net cash In FY25, it has outlined will be temporary Broking’s analysts. On the
Source: Company presentation
should help. In the near term, Ultra- positive by FY25-end. REUTERS ₹9,500 crore capex and valuations front, UltraTech
PRANAY BHARDWAJ/MINT
Tech expects fuel cost to decline from ₹10,000-11,000 crore annu- is trading at FY25 EV/Ebitda
$150/tonne to $130/tonne and its bene- and reducing the lead distance. This the ICICI Securities report. ally in FY26 and FY27. of 18 times, showed Bloomberg data. EV
fits on earnings are likely to reflect in the bodes well for its long-term earnings But post the Adani Group’s entry, the Now, including Kesoram Industries is enterprise value.
next few quarters. outlook and helps gain an edge over earnings narrative for large cement man- capacity (regulatory approvals awaited) UltraTech enjoys the highest valua-
In the next two to three years, Ultra- peers. “Even as we revise down our ufacturers continues to be driven by vol- and overseas capacity, UltraTech is eye- tion multiple among listed peers, due to
Tech aims to reduce its operating costs FY25E Ebitda by about 9% (tracking ume growth and pace of capacity addi- ing around 200mtpa overall capacity by its solid volumes backed by capacity
by ₹300-400/tonne through internal weak cement prices and its outlook), tions. In Q4FY24, volumes for Ultra- FY27. However, in the current context expansions, offering higher growth visi-
improvements such as increasing the keeping faith on cost efficiency meas- Tech’s domestic operations grew by 11.2% of subdued cement prices and height- bility. However, valuations could mod-
share of green power, alternative fuels ures, we retain our FY26E forecast,” said year-on-year to 33.22 million tonnes per ened competition, these positives may erate if competitive pressures escalate.
UK banks and building societies authorized 61,325 home

loans in March, up from 60,497 in February. ISTOCKPHOTO Trent’s solid end to the year keeps markets hoping for more
UK mortgage approvals rise, Pallavi Pengonda nue share of Trent’s value fash- added 12 stores during the quar- pricey for a while. Some argue
Hip and happening
housing optimism persists [email protected] ion format Zudio, where the
Trent's year-on-year revenue growth and gross margin expansion
ter, taking the count to 232 at the that the company’s superior gro-
Britain’s housing-market recovery continued into March gross margin is lower. Trent’s in Q4FY24 was stellar
end of March. As for Zudio, wth deserves a premium.
T
as mortgage approvals rose for a sixth month, Bank of rent Ltd’s impressive run fourth-quarter margin expan- Trent added 86 stores during the Given this, sustained growth
Revenue (in crore) Gross profit margin (in %) (right-hand scale)
England figures show. Banks and building societies continued during the sion can be attributed to several quarter, taking the count to 545. would support valuations and
4,000 80
authorized 61,325 home loans, up from 60,497 in Febru- quarter ended March factors, including moderating Analysts estimate Zudio’s rev- that’s something investors will
ary and the most since September 2022. Unsecured (Q4FY24), keeping investor sen- raw material prices. The 3,000 60 enue growth was faster than that track. But Jefferies India analysts
credit, including credit card debt, rose £1.6 billion, timent upbeat about the Tata improvement in gross margin of Westside. Overall, Trent’s have sounded a note of caution.
slightly higher than forecast. Buyers are being lured back Group apparel retailer. could be on account of hig-her 2,000 40 fashion concepts saw like-to-like “Weak disclosures, however,
into the housing market by a brighter economic outlook A striking parameter in full-price sales and a possi-ble 1,000 20
growth of over 10% in Q4. leave a lot to imagination (e.g.,
and increased affordability after a sharp fall in mortgages fourth-quarter financials, apart writeback of provisions in the Investors are understandably balance sheet contraction due to
rates . However, a recent resurgence in borrowing costs from its stellar revenue growth, March quarter, Kotak Institu- 0
Q4FY22 Q4FY24
0 pleased. Trent’s shares hit a IndAS 116 in Mar-24),” the ana-
has raised questions over whether the recovery can con- is its gross margin, which expa- tional Equities analysts said. 52-week high of ₹4,670 apiece lysts said in a 29 April report.
Note: Standalone numbers Source: Company, Motilal Oswal Financial Services
tinue. The threat was underlined on Monday when Nat- nded by 449 basis points year- Moreover, emerging catego- on Tuesday. The robust end to “With more than $18 billion mar-
west, Santander and Nationwide became the latest big on-year to 45.3%. Recall that in ries including beauty and per- FY24 has prompted analysts to ket capitalization, Trent will lik-
lenders to increase mortgage rates this month in the third quarter, Trent’s gross sonal care, innerwear, and foot- jumped 53% year-on-year to dalone revenue growth surged raise their earnings estimates for ely become more mainstream
response to rising swap rates, which are used to set the margin had improved by 57 basis wear now contribute more than about ₹3,187 crore on the back of 55% to ₹11,927 crore, although the company for FY25 and FY26. than in the past; hence, we see
bulk of mortgage products. For the 1 million households points to 46% after having con- 20% of Trent’s standalone reve- robust store additions and heart- gross margin fell slightly by 20 Trent stock has seen solid merit in following best practices
due to refinance fixed-rate mortgages by end of the year, tracted for several quarters in a nue. As such, Trent’s overall ening comparable, or like-to- basis points to 45.2%. In its other gains, up by about 44% so far in from group firms like Titan and
new loans will be pricier. BLOOMBERG row. This despite the rising reve- standalone revenue in Q4 like, sales. For all of FY24, stan- fashion concept Westside, Trent 2024. Sure, valuations have been Tata Consumer Products.”
Mark to Market writers do not have positions in the companies they have discussed here
Retail, auto, new Services companies’ registrations soar in FY24, industry lags
hiring hotspots FROM PAGE 1 years including in the services
sector, which is evident in the
the GST registration threshold ces, however, saw 28% fewer
is ₹40 lakh. GST registrations registrations in FY24 with
had paid up capital of ₹31,000
crore.
in FY24 accounting for entities
with paid-up capital up to
Andersen India. increase in GST registrations. have grown from about 14 mil- 27,853 new businesses getting In FY24, about two-third of ₹500,000. Paid-up capital rep-
FROM PAGE 1 The increased integration of Service providers crossing the lion in March 2023 to nearly formed. In the manufacturing the gross value-added in the resents the shares subscribed
India in the global services sup- sales threshold of ₹20 lakh 14.5 million in sector too, fewer economy, adjusted for infla- and paid for and can be raised
12% increase in contract place- ply chain and a healthy pool of need GST registrations, and February 2024, Experts also companies were tion, came from sectors such as up to the level of its authorized
ments in April versus the ear- experienced professionals set- this compliance effect may be showed data from consider rising registered in utilities, construction, trade, capital, and for further expan-
lier three months. This indi- ting up startups, supported by getting mirrored in the com- GST Council. compliance in FY24—27,193 hotels, transport, communica- sion, businesses could seek reg-
cates that these companies government schemes, have pany registrations as well. The trading GST having an companies, 13% tion, finance, real estate servi- ulatory nod.
would rather take on people on also helped lift company regis- Besides, starting a venture in sector saw a 42% less than in the ces, defence and public admin- Only 27 new businesses were
effect on
short-term basis than for per- trations in the services sector, the manufacturing sector jump in new reg- year before. Agri- istration, as per the second formed in FY24 with paid-up
manent roles. said Malhotra added. would not be at the same level istrations with company culture and allied advance estimates from the sta- capital in the range of ₹100
Mishra noted that even Experts also consider rising of ease as in the services sector,” over 29,000 enti- registrations sector saw 5.5% tistics ministry. crore to ₹500 crore, while only
global capability centres compliance in Goods and Ser- said Suranjali Tandon, associ- ties taking birth in fewer registra- In terms of the size of new three new businesses had
(GCCs) have slowed down their vice Tax (GST) having an effect ate professor at National Insti- FY24. Construc- tions in FY24 at business registrations, micro paid-up capital in the range of
mandate closures in most pro- on company registrations. tute of Public Finance and Pol- tion sector saw a more than 15% 10,751 new entities getting businesses are at the forefront ₹500-₹1000 crore and just two
files. GCCs are captive offshore “The formalization of the econ- icy (NIPFP). jump with 11,560 new registra- incorporated. All companies in entrepreneurship, with 87% were above ₹1,000 crore, data
development centres of multi- Drop in attrition rates of IT cos omy has picked up in recent In the case of trade in goods, tions in FY24. Business servi- registered in FY24 together of all new businesses registered showed.
national companies. in Q4 of FY24 is another sign of
IT sector majors Tata Con- low churn in the sector. MINT
sultancy Services (TCS), Info-
sys, and Wipro posted a cumu-
lative full-year decline of
63,759 people in their work-
ing. In permanent recruit-
ments, the HR firm gets a cer-
tain percentage of a candidate’s
How a high court order on LVB poses challenges for the RBI
force in FY24. compensation after placement.
Employee expenses, which In temporary staffing, there is a Gopika Gopakumar olders of erstwhile Lakshmi The Madras high court criti- appointing an official valuer to the official gazette. The RBI
form more than 55-60% of an flat fee structure, and the same [email protected] Vilas Bank filed a suit against cized the RBI’s lack of trans- reassess the shares and assets usually keeps the process of
IT firm’s costs, remain a con- set of people gets moved from mumbaI the write-down of their invest- parency in selecting DBS for of DBS and LVB. selecting a suitor confidential
cern. The trio reported an one firm to another once the ments in tier 2 bonds worth amalgamation. It noted that 12 How does RBI approve to protect public depositors.
L
increase in their employee stipulated period is over. ast week, the Madras high ₹320 crore after the bank’s proposals were considered, amalgamations? How is this different
wage costs as a share of reve- A drop in attrition rates of IT court directed the merger with DBS Bank. They but their terms and conditions There are two types of amal- from the Yes Bank order?
nue in the March-ended quar- companies in Q4 of FY24 is Reserve Bank of India argued that Centre-approved were not disclosed, ostensibly gamations in the banking sec- In the case of Yes Bank, the
ter of 2023-24, a Mint analysis another sign of low churn in the (RBI) to conduct a compre- merger scheme was silent on to maintain confidentiality. tor: compulsory and volun- Bombay high court had ques-
of their financial results sector. hensive valuation of shares this write-down and accused “Even if the decision has to tary. Compulsory amalgama- tioned the writing off of addi-
showed. However, there are selective and assets of DBS Bank India RBI of acting arbitrarily. be taken secretly in the inter- tions are induced or forced by tional tier 1 bonds worth ₹8,415
For Wipro, which had the skills that need immediate (DBIL) and Lakshmi Vilas Last Friday, the Madras high est of the banking sector, the the RBI under Section 45 of crore after the bank’s reconst-
highest wage burden among attention and closure. India’s Bank (LVB) before their amal- court passed a RBI has to the RBI Act to protect deposi- ruction. The Supreme Court
Indian IT companies, 61.4% of largest IT services firm, in gamation in November 2020. final order m E X P L A I N E R maintain files. tors and the public interest. put this order on hold after the
the quarterly revenue went on March offered vendors Rs Based on this valuation, the refusing to The decisions When a bank faces financial RBI argued that it would ren-
employee benefits in the three 40,000 per candidate over and regulator is expected to reas- interfere with are to be RBI plans to appeal against the distress, the RBI places it der Yes Bank non-viable.
months ended March, up from above the fees if they manage sess its decision to write down the RBI’s decision. recorded. Such decisions are order in the apex court. MINT under moratorium and frames In the case of LVB, the
60.5% in Q3 and 61.5% in Q2. to make senior candidates join shares and tier 2 bonds of LVB. However, it directed the liable to be placed before this a merger scheme to transfer its Madras high court questioned
TCS reported a marginal in less than 30 days. Called the This decision follows a lawsuit RBI to reassess the shares and court while it calls for Judicial before writing down its shares assets and liabilities to a the procedure followed by the
increase from 57.3% in Q3 to ‘Quick Joiner Incentive Plan’, by LVB bondholders and assets of DBIL and LVB before Review,” it noted in the order. to zero, without accounting for stronger bank. RBI in amalgamating LVB and
57.4% in Q4, while Infosys allo- vendors are however cau- minority shareholders, challe- the amalgamation and recon- The court also criticized the the market value of its assets. This scheme is sent to the DBS and subsequently writing
cated 53.8% to employee costs tioned that the money will be nging the write-down of their sider the reduction in value of RBI for not protecting share- What is RBI likely to do? banks concerned, depositors, off shares and bonds.
in Q4, up from 53.2% in Q3. recovered if the candidate investments. Mint explains the shares and the write-off of tier holders’ interests, failing to The central bank plans to shareholders, and others for The court directed RBI to
The slow pace of IT vacan- leaves the organization in six significance of the latest order 2 bonds. The court gave RBI determine a swap ratio, and appeal against the order in the feedback. After considering revalue the shares of LVB and
cies being filled is in turn slow- months. The urgency to get and what it means for the RBI. four months to complete this not conducting a comparative Supreme Court, saying that its the inputs, the RBI finalizes DBS, noting that unlike Yes
ing down the billing opportu- experienced employees in pro- What is the order about? assessment. valuation of LVB and DBS actions were necessary to pro- the scheme and sends it to the Bank, both shares and tier 2
nity for the recruitment firms, grams like Flutter, Windchill, In December 2020, bond- What were the observa- shares. RBI only considered tect depositors. Complying Union government for bonds were written off for LVB
which look at permanent hir- Workday, SAP. holders and minority shareh- tions made by the court? LVB’s negative net worth with the order would require approval and notification in due to its negative net worth.
LIVEMINT.COM
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Full body scanners at B’luru, Decline of remote

work spells gloom
Delhi, Mumbai airports soon for villa holidays
FROM PAGE 1
And so, the per-home yield is

Sebi also okayed streamlining Delhi and Bengaluru are in advanced stages of installing the machines; Mumbai is on track getting better even though the
of prudential rules for passive occupancy may not be as high.
MF schemes. ISTOCKPHOTO Average Room Rates or ARRs
Anu Sharma are getting better because of
Monitoring, [email protected]
New DelhI
the improved quality of inven-
tory. ARR is a metric hoteliers
use to calculate how many
controls to
I
n a step towards hassle-free passen- times a property is occupied in
ger movement at terminals, major a month and what the average
check front- airports of the country, including

Delhi, Mumbai, and Bengaluru, are
undertaking trials of full body scan-
cost per room per night is.
There are no official esti-
mates of the size of the luxury
running ners at the airports.
The full body scanners were
villa segment. Parulekar esti-
mates there would be any-
Villa owners are now seeing
lower returns from their
expected to be installed at all major air- where between 2,500 and properties. ISTOCKPHOTO
FROM PAGE 1 ports with an annual passenger traffic 3,000 high-end and luxury vil-
of 10 million passengers, but the time- las in the country, and Saffron- where the owners have not
relative disadvantage com- lines have been postponed due to delay Stays has about a tenth or 290 been focused on or interested
pared to other AMCs that may in import of the equipment. However, of them. in investing in maintenance
not have a sponsor group com- Delhi and Bengaluru are expected to be One industry estimate— and upkeep.
pany accounting for over one- in advanced stages of installing these though by a builder and rather For instance, StayVista is try-
fourth of an underlying index, machines. rosy—suggests, in 2023, the ing to keep away from budget
the regulator said. The Delhi airport aims to install the overall branded rental villa homes in general. “We tell new
Therefore, to create a level- full body scanner by the second half of The full body scanners were expected to be installed at all major airports with an annual passenger traffic of 10 million market stood at $329.6 million owners not to expect too much
playing field, Sebi has approved this fiscal year, while the Bengaluru air- passengers, but the timelines have been postponed due to delay in import of the equipment. and is expected to grow at a from their holiday homes, but
amendments to allow passive port is undertaking trials, two people CAGR of 33.2% in years to the fact that their holiday
equity schemes on specific aware of the development told Mint. senger screening time by 50%. Cur- tive airports within one year. However, commenced trials of these scanners at come. Axon Developer, in its homes will be well maintained
indices to take exposure up to The installation is likely in 2–3 months, rently security personnel takes around in view of the covid pandemic, BCAS its airports and the plan for trials and report, said this segment is and yield positively at the end
the weight of the constituents they added. 30 seconds to frisk a passenger, and further extended the deadline to March installation is currently “under plan- slated to reach $1,377 million by of the month rather than give
in an underlying index. This “The work is in progress, in accord- officials expect the screening time via a 2022. ning”. 2028. But the business of alter- them negative returns in the
exposure, however, would be ance with the latest guidelines issued full body scanner to be nearly 15 sec- In line with this, the Airports Full body scanners are manufac- nate accommodations has form of repairs and mainte-
subject to an overall cap of 35% by the Bureau of Civil Aviation Security onds. Authority of India (AAI), which oper- tured mainly by some companies in the become steady. nance expenses when the
investment in the group com- (BCAS). We hope to have the full body The Mumbai airport, the country’s ates over 130 airports in the country, US, Europe and the UK among others. Online travel major Book- home is left unused,” he added.
panies of sponsors, it said. scanner installed by the second second largest, is also undertak- had invited tenders for 198 body The cost of one full body scan- ing.com’s Asia Pacific manag- “When they come there,
Moreover, the regulator half of this fiscal,” a Delhi air- ing trials of this technology. scanners but the tender was ner varies around ₹4 cro- ing director Laura Hould- initially, they are kind of nerv-
approved a framework to pro- port spokesperson told “Procurement process is withdrawn after public re-₹5 crore, including sworth, in a recent conversation ous about giving their proper-
vide flexibility for increased
contribution by non-resident
Mint.
Full body scanners can 50%
Time saving that
underway. Full body investment board sug-
s c a n n e r s w i l l b e gested implementation ~₹5 cr
Cost of a full body
annual maintenance.
As per the latest data
with Mint, had said a third of the
company’s global bookings
ties to people who are not their
friends or family, but later, as
Indians, overseas citizens of detect and locate forbid- deployed at Mumbai in a in a phased manner. from AAI, the Delhi air- come from this segment. the asset gets older, they find it
India, and resident Indians in den objects concealed full body scanner phased manner. In the As a result, the author- scanner, including port was the busiest air- Villa owners, who typically a little more difficult to deal
the corpus of certain foreign under a person’s clothing. installation affords first phase, two full body ity is expected to install maintenance port in the country at 73.7 share 30% of the revenue with with the asset because the
portfolio investors based out of In contrast to metal detect- scanners shall be installed,” full body scanners at its million passengers handled these operators, are now seeing novelty value of it has gone
International Financial Servi- ors used extensively at pas- Mumbai airport spokesper- busiest airports in the first in FY24. lower returns from their prop- down and now it requires a lot
ces Centres in India and regu- senger airports, these devices can son told Mint. phase and these include 13 scan- The Mumbai airport was the erties. After operational of repairs and restorative
lated by the International also detect non-metallic objects such as The implementation of full body ners at Kolkata, 12 at Chennai, eight at second busiest with 52.8 million pas- expenses, the owners earn work,” added Damani. The
Financial Services Centres explosives. Several airports across the scanners at Indian airports has been in Dabolim airport and five at Pune air- sengers, followed by Bengaluru airport about 50% of the revenue company is now looking at
Authority. The flexibility for US, Canada, Australia among others are the works since 2019. In April 2019, port. with 37.5 million passengers. The traf- from the days their villas are better, newer developments
such participation shall be sub- using this technology to screen passen- BCAS had issued a circular, directing An AAI spokesperson told Mint that fic at government-run Chennai airport occupied. all over the country where “we
ject to certain conditions to gers at security check-points at termi- installation of full body scanners to it is planning to install full body scan- stood at 21.2 million and that at Kolkata The operators said they have are also able to suggest more
manage regulatory risk, the nals. replace door frame metal detectors at ners at these airports. airport was recorded at 19.8 million been able to offload some prob- realistic projections to our
regulator said. This is expected to reduce the pas- more than 80 hypersensitive and sensi- However, it added that it has not passengers for FY24. lematic or older inventory owners”, he said.
RPG in for a makeover as scion takes hold of reins IT Inc starts to worry if AI
FROM PAGE 1 said. “We feel we are playing in
a space that is going to grow
with renewable energy becom-
ing bigger, people are reconsti-
will hit reputation, profit
“If you were to look at what faster over time.” tuting their lines worldwide.
the future big trends for India Ceat is also looking to grow The entire TMD business FROM PAGE 1
are, I would say India’s con- in the personal electric vehicle becomes very important.”
sumption story is looking very segment. KEC has been making December 2023.
strong... Manufacturing looks “Ceat indicated that it bolt-on acquisitions over time. Capgemini flagged the
very strong. Digital and AI look expects to increase its export In 2021, it acquired EPC com- “rapid deployment of gener-
very strong, where we are in the revenue mix to ~25% from the pany Spur Infrastructure, ative artificial intelligence”
tech space. And maybe cli- current ~19%, led by foraying which was engaged in setting among emerging risks when
mate,” Goenka said. into new markets, customised up cross-country oil and gas the French IT services firm
“These are those four big product offerings, ramping up pipelines as well as city gas dis- disclosed its annual report
megatrends that are currently capacities and winning orders tribution networks. on 29 March. “Generative AI
in the world, and we are fairly from legacy OEMs,” brokerage “We will continue to look if will transform numerous
well-positioned in may be at Yes Securities Ltd said in a some capability acquisitions jobs and create new ones in
least three of the four themes.” research report dated 4 March. are there,” Goenka said. both our organization and
RPG is riding the consumer RPG Group has been more organized in paving an early path for “The company highlighted For all these expansions, our clients’ organization...
trend through its tyres busi- the younger generation of its promoter family. that it has a low presence in the RPG Group’s future may lie in From a societal point of
ness, Ceat Ltd, and the manu- replacement TBR (truck and newer ventures. view, generative AI threat-
facturing theme through KEC Hindustan Unilever Ltd, was panies diversify their supply bus radial) market, which the Over the past year, Goenka ens to exacerbate social
International, which operates deputy managing director at chain systems outside of China. company will be capitalizing on has been instrumental in seed- divides and raises challen- Accenture, which follows a September-August financial year,
in the EPC space. Ceat for 18 months before he “Europe and the US are two in the coming years to drive ing new venture firms within ges for democracy and warned that Gen AI could hurt its profitability. ISTOCKPHOTO
Anant Goenka’s rise within took charge as MD in 2012, very important geographies growth. New products in TBR the group to solve specific pain human rights, particularly
the RPG ecosystem and how eventually leading the business where we want to substantially and PCR (passenger car radial) points. Although his experi- as its workings lack trans- and vendors, and unautho- which are still navigating
that reflects some of his future for over 10 years. look at growth,” Goenka said, will be launched in the US ence in running a startup or a parency and results may be rized disclosure of sensitive their AI strategies and have
moves is explained by his In October, when he was adding that Ceat would con- ahead,” it added. technology or pharmaceutical inappropriate or biased,” or confidential informa- not disclosed their earnings
friend, Bhavish Aggarwal, promoted as vice-chairman of sider acquisitions as a way to Much like Ceat, Zensar company is unproven, Ola’s said Capgemini, which tion,” said Accenture. from this technology, consid-
founder of Ola Cabs and Ola RPG Group, he ceded his posi- grow in these geographies. Technologies Ltd, the RPG Aggarwal argues that Anant ended with $24.1 billion in From difficulties in retain- ered by many as the biggest
Electric, who describes Goenka tion as MD of Ceat to a profes- Yet, Ceat has a long way to go Group’s software services com- Goenka has the essential attrib- revenue in the year ended ing people to visa-related risk to the outsourcing indus-
as a “thoughtful and empa- sional, Arnab Banerjee, who before it can bridge the gap pany, operates in a sector with utes of an entrepreneur. December 2023. issues, technology outsour- try.
thetic leader”. was earlier chief operating offi- with competitors Balkrishna much larger players. So far, “He has all of them: focus on Meanwhile, Accenture, cing firms list several poten- Last month, TCS for the
“I’ve seen him consolidate cer at the tyre company. Industries Ltd, Apollo Tyres Zensar has largely been con- the future, decision-making, which follows a September- tial risks to their businesses first time disclosed that it had
his business in the last few Anant found working across Ltd and MRF Ltd. centrated on the banking, understanding the customer August financial year, so that investors can decide $900 million worth of GenAI
years, and he has been the group in various cross- Balkrishna Industries, pre- financial services, and insur- well, walking the shop floor, warned that Gen AI could if they want to invest in the contracts.
thoughtful and thorough with functions allowing him to grow dominantly in the off-highway ance, or BFSI, segment, but is and focusing on excellence,” hurt its profitability. “The company. But it is for the Like Accenture, TCS’s
whatever business decisions he stronger within the system. tyres space, has a market cap of now looking at other business Aggarwal said. introduction of new technol- first time Accenture, Cap- share of GenAI projects
has made,” Aggarwal said. “I think that helped me get over ₹45,800 crore, or about opportunities as well. RPG Group in August last ogies (such as Generative gemini and Cognizant have remains tiny: 2.1% of $42.7 bil-
RPG Group has been more credibility amongst my peers. $5.5 billion. MRF has a market “We have a clear strategy to year acquired a small tyre AI), services or products by highlighted risks associated lion of order book at the end
organized in paving an early Had I jumped into a leadership cap of nearly ₹55,000 crore, or grow in healthcare and lifesci- startup called Tyres and More, competitors could reduce with AI and Gen AI in their of March last year.
path for the younger genera- role (directly), I feel not only $6.5 billion, and Apollo Tyres ences as a new vertical,” Anant which provides doorstep our ability to annual reports. “A full realization of
tion of its promoter family than would I have less credibility, about ₹30,000 crore, or $3.6 Goenka said about Zensar, change of tyres to customers obtain favoura- Last month, “Inclusion of GenAI’s benefits will take
many other business houses. but my own confidence possi- billion. which has a ready war chest for through a website and an app. ble pricing and TCS for the AI and Gen AI as time and enterprises and soci-
The late R.P. Goenka had the bly would have been somewhat Apollo Tyres has made sig- potential acquisitions. “Our Currently, the company pro- impact our over- first time a risk factor sug- ety still have considerable
foresight to divide the group less,” Goenka said. nificant headway in the Euro- balance sheets are in a very vides this service across three all economics for disclosed that it gests that these challenges to address,” said
assets between his sons Harsh Markets have noted the pean market through some comfortable position at this cities but plans to expand.
had $900 million technologies are post-earnings interaction
the services or TCS CEO K. Krithivasan in a
and Sanjiv Goenka. Anant is change at RPG, with Ceat’s acquisitions, including of point, where we are sitting on In September, RPG Group solutions we increasingly
Harsh’s son and the heir appar- market capitalization soaring Netherlands-based tyre-maker around $250 million of cash in launched its telematics-fo- offer,” said worth of GenAI coming to play a with analysts on 12 April.
ent to inherit the mantle of the to ₹10,000 crore, or $1.2 billion, Vredestein in 2009 and Zensar.” cussed venture Taabi Mobility, Accenture, contracts role in the busi- “These include managing
RPG group. Sanjiv Goenka got from $50-60 million in 2011- Reifencom GmbH in Novem- Similarly, KEC Interna- a software-as-a-services plat- which reported a ness of IT out- the risks inherent in Gen AI,
energy flagship CESC Ltd, 2012, when Anant Goenka had ber 2015. tional, the RPG Group’s EPC form that offers ways to analyse 4% revenue sourcing firms,” reskilling and upskilling the
music business Saregama, taken charge as MD. “We have to grow faster,” business, has seen its revenue vehicle data to manage fuel growth to end with $64.1 bil- said a Bengaluru-based part- workforce and reimagining
chemical specialities company Other group companies Goenka said of Ceat. mix change. inefficiencies and vehicle lion in the year ended August ner at a venture capital firm. core business processes.
PCB, and business process have kept pace with the tyre- Among areas where Ceat can At one point, KEC earned uptime. 2023. It ended the year with “Now, depending on the Customers are looking at
management firm FirstSource, maker in recording growth in gain speed include growth in 70-80% of its revenue from the Recently, the group also an operating margin of maturity level of these tech- scaling out POCs (proofs of
among other businesses. revenues, profits and market off-highway tyres and higher power transmission business. launched a new venture for cli- 13.7%, down 150 basis points nologies inside Indian IT concept) and pilots by
Anant’s elevation within the capitalization. market share in the passenger This has now dropped to less mate change. from the 15.2% profitability firms, it will be logical to implementing necessary
Harsh Goenka-led RPG Group Anant Goenka led Ceat to segment, including by selling than 50% because of KEC’s “Climate change is a big in 2022. expect some of them to guardrails,” he said.
flows from this path set by his grow its market share in two- more premium products. growth in areas such as oil and problem and presents itself as a “As cyberattacks become describe it a potential area of “I believe it is still early
grandfather. The younger wheeler tyres from 10-11% to “If you look at the US market, gas and infrastructure. It also big opportunity. We are increasingly sophisticated risk.” days, but it is a prudent prac-
Goenka also has the benefit of nearly 30% now. The company maybe 50-60% of the market is expects a boost in its cable busi- exploring a carbon offset busi- (e.g. deepfakes and AI gen- Accenture claims to have tice to describe it, just like in
working across various group then began to increase its focus in passenger cars because their ness as the sector makes way ness,” Goenka said. “The cur- erated social engineering), won $1.1 billion in GenAI pro- the past when the rise of
companies, including at Ceat on the sports and utility vehicle GDP levels are higher. India is for branded businesses and rent carbon credits business the risk of security incidents jects or 2.8% of the total order cloud computing firms came
and KEC International Ltd, segment. Its current focus now moving towards higher GDP opens up for international play. has a reliability issue. What we a nd c yb er a t t a c k s ha s book during the first half of with the risk of self-cannibal-
over the past decade or so, giv- is on off-highway tyres. growth, which means the pas- “KEC will continue to grow want to do is take genuine, increased. Such incidents the current fiscal year. Its ization of business for IT ser-
ing him significant operational Ceat is now looking at capi- senger segment will outpace in newer areas—green hydro- high-quality businesses that could lead to shutdowns or early success in GenAI is in vices firms,” said Apurva
expertise. talizing on exports, and looking commercial vehicles, and over gen could be a huge opportu- are not only offsetting disruptions of or damage to contrast with Indian IT servi- Prasad, vice-president of
Goenka, who began his to tap opportunities in interna- time, we will reach a similar mix nity,” said Anant Goenka. “In carbon but also helping local our systems and those of our ces majors such as TCS, Info- institutional research at bro-
career at consumer goods giant tional markets as global com- as our GDP grows,” Goenka transmission and distribution, communities.” clients, ecosystem partners sys and HCL Tech, many of kerage firm HDFC Securities.
LIVEMINT.COM DEALS, TECH & STARTUPS WednesdAy, 1 MAy 2024
AhMedAbAd 07
m MINT SHORTS
PointO raises seed funding from
IvyCap eyes seed bets
Equirius InnovateX Fund, others
Bengaluru: E-mobility startup PointO has raised $743,257
(₹6.2 crore) in a seed funding round led by Equirus InnovateX
Fund, with participation from undisclosed investors. The
with ₹2,100 cr Fund III
startup plans to expand its physical centres to include 10 cities
over the next 12 months, according to a statement. PointO is
building a full-stack lithium battery ecosystem, encompass-
ing the manufacturing, financing and servicing of lithium bat- With 40% of the corpus already deployed, the firm seeks to back 25 cos
teries. On the other hand, financial services firm Equirus Cap- The revised filing incorporates additional details, including KPIs
ital, marked the first close of its maiden venture capital fund and financials up to December 2023.
Equirus Innovate X within two months of securing approval Samiksha Goel
from Sebi for a category-I alternative investment fund (AIF)
in February 2024. K. AMOGHAVARSHA
[email protected]
BEngAluru FirstCry updates
E disclosures, files
arly-stage investor IvyCap Ven-
Delhi HC bars Grover from tures on Tuesday announced the
closure of its third fund at ₹2,100
transferring BharatPe shares crore, exceeding its initial target
ASHNEER GROVER/LINKEDIN
of ₹1,500 crore.
According to Vikram Gupta, founder
and managing partner, IvyCap Ventures,
listing papers again
the firm utilized the greenshoe option to Sowmya Ramasubramanian Mahindra & Mahindra. For the
secure the additional capital. sowmya.ramasubramanian nine months ended December
Around 90% of the capital was raised @livemint.com FirstCry reported revenues of
from domestic investors, and the remain- BEngAluru ₹4,814 crore with a loss of ₹278
ing amount was contributed by the alumni crore. Expenses for the period
B
of Indian Institutes of Technology (IITs) rainbees Solutions Pvt. amounted to ₹5,159.7 crore. In
from around the globe, Gupta added. Ltd, the parent of omni- FY23, its losses had ballooned
“60% of the capital was raised from our channel retailer of baby from ₹77.60 crore a year ago to
existing institutional investors, 20% from Vikram Gupta, founder and managing partner of IvyCap Ventures. @VIKRAMGUPTA70/X and mother care merchandise, ₹483.5 crore. In terms of KPIs,
IIT alumni and 20% from family offices, FirstCry, resubmitted its draft it clocked 25.36 million orders
New Delhi: The Delhi High Court (HC) on Tuesday marking their inaugural participation." Biryani By Kilo and BlueStone. enough funding and guidance. Funding prospectus with the Securities during April-December 2023,
barred former BharatPe managing director Ashneer The existing investors had also contrib- While IvyCap has typically prioritized might still be available, but we believe that and Exchange Board of India with an average order value of
Grover from selling or making any third-party claims on uted to IvyCap Ventures’ funds 1 and 2. Series A investments, the third fund marks a support system is missing where the fol- (Sebi), complying with the reg- ₹2,228. Its gross merchandise
the 16,110 shares transferred to him by co-founder Bhavik Following the successful fundraising, its foray into seed-stage investments. low-on rounds can also happen.” ulator’s request to refile its value stood at ₹5,650.7 crore.
Koladiya. Koladiya alleged a breach of the share purchase IvyCap’s assets under management (AUM) “We didn’t do it earlier because we were IvyCap Ventures Fund 1 realized a ₹330 application due The funds will
agreement dated 3 December 2018 and claimed owner- has reached ₹5,000 crore. very focused on exits, and exit frames are crore exit, with 22x return on Purplle. It is to inadequate dis- In the nine be used to open
ship of the shares, which account for approximately 3.1% IvyCap seeks to back 25 firms with seed longer with seed investments. In this fund, working on another big exit. closure of KPIs, or months ended new stores and
of BharatPe’s shareholding. The fintech company was money and Series A investments from its our investors say that we can take the risk “We have created India’s first dragon, a key performance Dec 2023, the firm warehouses, lease
founded in 2017 by Koladiya along with another third fund, with an average initial invest- and put 5% in seed funding,” said Gupta. company that gives you exit value of more indicators. logged a revenue payments, expan-
co-founder Shashvat Nakrani. KRISHNA YADAV ment of ₹30-50 crore. than 1x of the entire fund. The revised fil- sion to Saudi Ara-
of ₹4,814 crore,
“25 new companies with FUEllING GROwTH When we exited Purplle in ing incorporates
with a loss of
bia, investment in
average ticket of ₹50 crore 2021, ₹15 crore investment additional details, subsidiaries, mar-
Influencer marketing platform takes its to about ₹1,250 crore. AROUND 90% THE VC firm seeks OF about 125,000 gave us ₹330 crore in cash including KPIs ₹278.20 crore keting, technol-
20% of the thrid fund, or of the capital for to back 25 firms with registered startups in outcome. We expect to see and financials up ogy upgrades and
vHub.ai secures seed funding IvyCap’s third fund
around ₹400 crore, will go was raised from
seed money and India, around 5,000
(online jewellery startup) to December ’23. acquisitions.
Series A investments have got some form
Bengaluru: vHub.ai has raised an undisclosed amount in a seed into follow-on rounds, and 5% domestic investors from its third fund of Series A funding BlueStone as the second The Pune-based firm has Kotak Mahindra Capital, Mor-
funding round funding from a host of investors including Z21 or about ₹100 crore, will be dragon from fund 1,” said decided to maintain the size of gan Stanley India, JM Finan-
Ventures and the Start Up India Seed Fund Scheme. The funds allocated to seed-stage invest- Gupta. its initial public offering, seek- cial, Avendus Capital and BofA
will be utilized to improve the company’s AI technologies to ments,” said Gupta. India boasts about 125,000 registered IvyCap Ventures manages a portfolio of ing to secure $500 million, or Securities were appointed as
deepen influencer discovery analytics and in enabling precise So far, IvyCap has deployed 40% from startups, of which 25,000 have received around 50 companies spanning sectors, approximately ₹4,162 crore. Of managers to the FirstCry issue.
connections between brands and influencers. The firm’s product the third fund. The portfolio includes Gra- angel funding, while about 5,000 secured such as healthtech, consumer tech, deep this amount, ₹1,816 crore will Founded in 2010 by Supam
offerings include an AI-based influencer discovery engine, fraud dRight, Flexifyme, Celcius, Agraga, Eggoz, some form of Series A funding, he added. tech (comprising software-as-a-service or constitute fresh issue of shares Maheshwari, it sells more than
detection tools, an ROI dashboard, an influencer marketing cam- ZestIot, Snitch, Beatoven.ai and Dhruva “This translates into 114-115 unicorns in SaaS, artificial intelligence (AI) and and the rest, an offer for sale. 6,800 labels, including Indian
paign management suite, a marketplace for brands and influen- Space. the country. At the 25,000 level, there are machine learning (ML), and Internet of Investors offering shares for global and in-house brands via
cers to connect, and an audience dashboard for brands to analyse It has also made follow-on investments quite a few startups that are ready to scale, Things), fintech edtech, and emerging sale are TPG Growth, Premji its app and website, as well as
their presence on social media platforms. K. AMOGHAVARSHA from its first two funds in LendBox, Miko, but they get neglected because there’s not sectors like agritech and spacetech. Invest, Softbank Group, and modern stores across India.
AhMedAbAd CORPORATE LIVEMINT.COM
Small airports see

dip in passenger
IndiGo eyes multiple India hubs
traffic in Jan-Mar The airline recently ordered wide-body planes, aims to operate non-stop overseas flights from Indian metros
Neha LM Tripathi
[email protected]
NEw DELhI Anu Sharma has also secured purchase rights for an 27% currently. This is expected to
[email protected] additional 70 Airbus A350 family air- grow further with the induction of
I
ndia’s airlines are moving NEw DELhI craft. Currently, the airline operates A321XLR aircraft from 2025 and A350
capacity to high-density low-frill flights with all-economy seats aircraft from 2027. Currently, IndiGo
I
routes between metros, from ndia’s largest domestic airline through a fleet of Airbus 320 aircraft, is the largest domestic and second-
flights connecting smaller cit- IndiGo has set a clear target for which can seat between 180 and 220 largest international airline after Air
ies and towns, which spiked itself with its first wide-body air- passengers. With this order, IndiGo India group, and operates around
fares that affected passenger craft order that it placed recently. will join the wide-body 2,000 flights a day.
growth in these places in the It wants to develop multiple hubs segment, which so far has TAKE-OFF “Today we operate
three months to March, in the country, providing direct con- only Air India and Vistara - AWAITED around 350 aircraft, by
according to data from the Air- nectivity to faraway destinations from both Tata Group compa- 2030, we will be operating
ports Authority of India (AAI). different metro cities with Airbus nies. CEO says there is a 550-600 air-
Cities like Ahmedabad, Srin- The slump at smaller airports A350 and Airbus A321 XLR (extra long The airline reiterated linear dip in market
share of Indian carri-
craft...between the A350
agar, Chandigarh, Patna, Nag- was in line with a trend playing range) aircraft, set to join its fleet 2025 that the decision to order ers in global markets and A320 family, there will
pur, Darbhanga, Jammu, Deh- out in post-pandemic India. HT onwards. 30 Airbus A350-900 air- beyond 5-6 hours be similarities in a lot of
radun, Kochi, Ranchi, Raipur The Airbus A321 XLR planes are craft was a conscious one elements, we will have
and Udaipur have seen a constraints could be the cul- expected to be used for non-stop, 7-8 after extensive evaluation, INDIAN carriers are synergy in cockpit crew,
significantly under-
decline in domestic passenger prit, said Ajay Prakash, owner hour flights to Europe and the Far East and it is also in line with represented in wide- methodologies etc,” Elbers
in the first three months of of Nomad Travels and presi- countries. IndiGo will offer non-stop flights to Europe, the UK, the US and Australia. HT the government’s ambi- body, long-haul said.
2024, showed data collated by dent of the Travel Agents Fed- In a conference call on the induction of creating global avi- market, Elbers says. IndiGo did not disclose
the state-run airports operator. eration of India, a lobby group. tion of wide-body aircraft on Tuesday, share of Indian carriers in interna- non-stop flights to Europe, the UK, the ation hubs in the country. whether it will operate a
The metros continued to grow “These numbers are also a per- IndiGo chief executive officer Pieter tional markets beyond 5-6 hours. US, and Australia from India. While “India is expected to low-cost wide-body prod-
passenger footfalls. fect example of unequal distri- Elbers said that the airline sees poten- Indian carriers are significantly under- the airline and the aircraft manufac- become the world’s third-largest uct or will add some full-service facili-
In Bihar’s Darbhanga, for bution of wealth in the coun- tial of different strongholds across var- represented in wide-body, long-haul turer did not share the cost of the economy by 2027, the aspirations of ties, but said that it will maintain cost-
instance, traffic declined by as try,” he added. ious parts of the country such as Delhi, market. We should be able to compete acquisition, it is estimated to cost Indian consumers are growing to leadership in its wide-body product as
much as 27.2% in the March India’s carriers have been Mumbai, Hyderabad, and Bengaluru, with global aviation hubs,” Elbers said IndiGo over $9 billion, based on 2018 travel, not only in the region but even well.
quarter, compared to the same struggling with various issues, and given the country's geographical in a conference call with analysts and list prices. The European aircraft man- further, and the growth of IndiGo as an “For way too long, Indian customers
period last year. The decline in including the grounding and position, it is optimistic of seeing some journalists. ufacturer has stopped publishing list airline has led to this deliberate deci- had difficulty reaching their destina-
passenger footfalls in Nagpur subsequent insolvency of bud- overlapping as well as unique connec- On 25 April, IndiGo placed a firm prices of aircraft since 2019. sion,” Elbers said. tions and with our new product, we
was 13.7%, Jammu 11.7%, Chan- get airline Go First in May due tions through different metro cities. order of 30 Airbus A350-900 aircraft In addition to the firm or confirmed IndiGo aims to deploy 30% of seat feel that they will have the opportunity
digarh 8.8%, to engine snags, “There is a linear decline in market that will help the low-cost airline offer order of 30 A350-900 order, IndiGo capacity on international routes, from to fly direct,” Elbers said.
Patna 8.3%, Udai- The main reason and the ground-
pur 3.7%, Srinagar for the trend is ing of at least 100
3.1%, Ranchi 2.8%, that airlines are planes of market
Ahmedabad 2.5% shifting capacities leader IndiGo for
and Kochi 0.3%,
the data showed.
from smaller similar problems.
The decline is
Go First lenders weigh liquidation after court order on planes
This is for the towns to metros, also attributed to
first time in the experts say capacity rationali- Reuters very grim,” one of the bankers said. The two bankers did not ond from Sharjah—based Sky as lessors and our comprehen- applicants, the second banker
past five years zation that has led [email protected] said. wish to be identified because One, Reuters previously sive portfolio of aviation servi- said. The bids include the
that the number to airlines shifting MuMbaI Go First’s resolution profes- they are not reported. ces uniquely position us to value of a piece of land offered
of domestic passengers at flight capacity from smaller cit- sional did not immediately authorized to The airline owes Sky One’s address the challenges and as collateral by the airline’s
L
tier-II airports has declined. ies to larger ones, airline execu- enders to India’s Go First respond to a Reuters’ email speak with the over ₹65 billion to Chairman Jaid- opportunities presented by Go promoters, the banker said.
This slump at smaller airports tives said. “Airlines do not leave will meet this week to dis- seeking comment. media. its creditors, eep Mirchandani First’s situation,” Mirchandani Reuters had earlier reported
was in line with a trend being the market. They instead cuss options for the bank- The airline owes a total of Go First has including Central said that despite said in an emailed response to that lenders had sought higher
played out in India after the reduce their capacities from rupt airline, including liquida- ₹65.21 billion ($780.88 mil- received two bids the deregistration Reuters. bids.
Bank of India,
pandemic, when larger cities smaller markets to focus on the tion, after a court order lion) to its creditors, which under the formal of leased planes, Ajay Singh and Busy Bee’s While liquidation seems to
and premium segments started premium ones, the ones that allowed lessors to take back include Central Bank of India, bankruptcy pro- Bank of Baroda, the company was majority shareholder Nishant be the most viable option
driving expansion. give them more revenue,” an their planes, two bankers with Bank of Baroda, IDBI Bank and cess—one from a Deutsche Bank prepared to bring Pitti did not respond to emails under the present circumstan-
The main reason for the executive said, requesting ano- Go First’s creditors said on Deutsche Bank. consortium in their own seeking comment. ces, it will be put to a vote once
trend is that airlines are shifting nymity. “The best example is Tuesday. The Committee of Creditors which includes assets and resour- Lenders may still choose to the committee formally rejects
capacities from smaller towns Nagpur. Decrease in domestic “There is no value left in the (CoC) met on Monday and budget carrier SpiceJet’s man- ces to revive the airline, if its reject the bids on the table as the two offers or if the appli-
to the metros, experts said. passengers at Nagpur is worry- airline after the court order another meeting is scheduled aging director Ajay Singh and bid was successful. they are not happy with the cants back out, both the bank-
High airfares due to capacity ing.” and chances of revival seem for Thursday, both sources Busy Bee Airways, and the sec- “Our extensive experience sums offered currently by both ers said.
‘Manipal Hospitals to continue expansion’
India's Leading
Naman Suri owned by it, in Kolkata over mix of equity and debt to
[email protected] the next year. The Bengaluru- finance its expansion.
NEw DELhI based group is keen to aug- The group also hasn’t
ment its footprint in key started any work on plans for
M
anipal Hospitals aims regions such as Kerala, an initial public offer (IPO).
Business News
to keep boosting its Hyderabad, Vizag, Pune, and “We know we have large
presence across the Delhi NCR. expansion plans, but we want
country through a mix of “We are looking at green- to be conservative with our
organic and inorganic expan- field options in Delhi NCR borrowing while ensuring
Platform
sions, its managing director and Pune. We that funding does
and chief executive officer also have a plot of The hospital chain not get in the
Dilip Jose said on Tuesday, a land in Rajarhat, will expand way. We know
day after the hospital chain Kolkata, where gradually, and the w e h a v e a n
announced the purchase of a we are thinking strategy is not option of an IPO,
presents
majority stake in the Kolkata- The chain on Monday of launching but we haven’t
dictated by any
based healthcare group Med- announced the acquisition of construction for really started
ica Synergie. Kolkata-based Medica. a new hospital specific timelines working on that.”
In an interaction with Mint, over the next one or capacity Earlier, Tem-
Jose emphasized that Manipal easier to plan, brownfields year. We are also asek Holdings,
Hospitals’ expansion would will be opportunistic depend- planning to the investment
be gradual, and the strategy is ing on what becomes availa- expand in Siliguri, part of the arm of the Singapore govern-
not dictated by any specific ble,” Jose added. “It’s a frag- Medica association we have. ment, had reduced its stake to
timelines or capacity. mented sector there is a lot of Post Raipur, we will also look 51% in Manipal Health Enter-
Candid Conversations with

“We don’t have any bed opportunity to grow and con- at other parts of Odisha. prises (MHE) by selling up to
capacity targets nor does any solidate and, so, we just want While Kerala and Hyderabad 8% stake in the company to a
Business Leaders
set of timelines bind us. We as to continue our growth remain geographies of great clutch of investors-Mubadala
a hospital chain are looking to momentum.” interest to us, brownfield Investment Company, Novo
expand through a mix of He said that the hospital remains opportunistic,” Jose Holdings, and the California
greenfield and brownfield. chain plans to commence added. Public Employees’ Retire-
While greenfields are a little construction on a plot of land, Manipal Hospitals will use a ment System (CalPERS).
‘India can beat China in electronics space’

Gulveen Aulakh Xiaomi or displace vendors at
[email protected] that segment of the market,” he
NEw DELhI said in response to a question
on India abilities to create its
I
ndia has the ability and own product brands.
Scan to watch now opportunity to produce local “As the electronics ecosys-
smartphone brands that can tem gets built out in India, and
overtake the likes of Xiaomi, as it certainly is getting major
foreign firms operating under amounts of new investment
tremendous political pressure right now, it becomes much
in China have the incentive to more plausible for Indian
diversify their manufacturing brands to source largely Indi-
centres and prop up alternative an-manufactured components
brands, Chris Miller, historian for electronics India,” he
and author of the 2022 book Firms squeezed by political pressure would diversify their supply emphasized.
Chip Wars, said. chains out of China and prop up alternative brands. BLOOMBERG “And I think smartphones,
He, however, emphasized probably, (are) not the only case
that the world’s fifth-largest cornering a significant market increasingly squeezed by the where that's possible. Other
economy could, instead, look at share globally. In a webinar political pressure that you get types of consumer electronics,
bolstering its capabilities in hosted by Indian Electronics from Beijing. That gives them a too. I think Chinese firms are
emerging areas such as electric and Semiconductor Associa- bigger incentive every year to equally vulnerable,” he added.
vehicles and medical technolo- tion chairman Satya Gupta, try to support the development In response to a question on
gies to challenge Chinese man- Miller said that the incentive of alternative brands, so I don’t chip design firms like Qual-
ufacturers, as the smartphone for India to create alternative see a reason why an Indian- comm partnering with Indian
segment was stagnating. brands in consumer electronics based smartphone company brands to create product com-
China is a dominant player in as well was becoming larger couldn’t produce an Indian panies that would take market
consumer electronics and every year. brand and sourcing compo- share away from Chinese firms,
Mint App www.livemint.com Mint Newspaper smartphone space, with brands “The fact that all foreign nents from India, from the US, Miller said that it was “possible
such as Xiaomi, Vivo, and Oppo firms working in China feel Taiwan or Japan, and displace and increasingly possible”.
LIVEMINT.COM CORPORATE WednesdAy, 1 MAy 2024
AhMedAbAd 09
ChrysCapital
Box office duds prompt some Coca-Cola makes
continuation
net gain of $293 mn
fund raises
$700 million
theatres to cut ticket prices Suneera Tandon
[email protected]
To be sure, Coca-Cola
works with bottling partners
NEw DELhi who manufacture and distrib-
Priyamvada C. ute its beverages in desig-
T
[email protected] he Coca-Cola Co. made nated markets. In India, it also
BENGALURU net gains of $293 mil- operates HCCB, the compa-
Owners of small theatres are taking initiatives to equip low-cost cinemas with basic amenities lion related to refran- ny-owned bottling business.
C
hrysCapital has closed chising of its bottling opera- Earlier this year, bottling
its largest ever continu- tions in certain territories in operations in key regions
ation fund at $700 mil- Lata Jha jection, sound and air-conditioning, but India earlier this year, the were transferred to existing
lion, anchored by investors [email protected] no premium luxury experiences or world’s largest beverage bottling partners.
including HarbourVest Part- NEw DELhi gourmet food. “Masses have no cinemas maker said on Tuesday. Refranchising of bottling
ners, LGT Capital Partners and to go to anymore; theatres have been In January and operations was
A
Pantheon Ventures, the private fter testing various promo- taken over by the rich,” he said. February this In January and focused on
equity firm (PE) said on Tues- tional pricing strategies for Mint had earlier reported that Com- year, the com- February, the firm streamlining the
day. small films over the past mon Service Centres—the physical pany refran- refranchised supply chain in
The new fund, meant to take few months, theatre own- facilities for delivering government chised its bot- its bottling the region and
on the portfolio of the earlier ers are now revisiting their e-services to rural and remote loca- tling operations raising the bar on
operations in
fund, has acquired a stake in ticket pricing plans, given the box-office tions—has tied up with a firm called in certain territo- execution, the
National Stock Exchange of failure of recent titles. October Cinemas to meet the target of ries in India. certain territories company had
India Ltd (NSE) that originally This is particularly relevant for those opening 10,000 movie screens over the As part of the of India said then.
belonged to ChrysCapital's lower down the value chain, operating in next five years. transaction, the “During the
Fund VI, which had invested in smaller towns and who are striving to The latter will coordinate with vil- company’s bot- three months
NSE in 2016. The transaction attract audiences to upcoming non-star lage-level entrepreneurs to build movie tling arm Hindustan Coca- ended 29 March 2024, the
has allowed investors in Chrys- films that have garnered limited attention. theatres with a seating capacity of Cola Beverages Pvt. Ltd company recorded net gains
Capital’s Fund VI to “monetize For example, Mukta A2 Cinemas 75-150 in small towns and provide them (HCCB), announced the of $599 million and $293 mil-
the performance on a highly implemented a uniform ₹99 ticket price with low-cost projectors besides acting transfer of bottling operations lion related to the refranchis-
successful investment,” the PE for all showings of the sports drama Maid- as distributors of films. in three territories in north ing of our bottling operations
firm said in a statement. The aan, while many independent cinema Pricing is a double-edged sword across the industry at the moment. REUTERS These theatres, developed as com- India. This included refran- in the Philippines and in cer-
investors were provided with owners are considering general price munity centres, for other occasions such chising of its bottling opera- tain territories in India,
the option to roll their value reductions to entice their target audience. that are ready to shell out even However, multiplex operators like as weddings and birthdays, will sell tick- tions in Rajasthan, Bihar, the respectively,” the company
into the continuation fund. Initiatives are also in the works to ₹800-1,000 in top metros, while there is Sharma believe audiences consciously ets starting at ₹50 and will serve as spa- north-east and select areas of said announcing its March-
“The landmark transaction make low-cost cinemas equipped with also a need to drive mass volume in sign up for the experience in premium ces for family entertainment. West Bengal. quarter earnings Tuesday.
was well oversubscribed and is basic amenities. Some theatres plan to terms of viewers in smaller markets. cinemas which cannot be replicated To be sure, several film trade experts
the largest of its kind in India continue offering discounts on specific “These (flat pricing strategies) are calcu- elsewhere. point out it is the unreasonable pricing
and ranks among the largest films in partnership with producers. lated risks for us, but one will increasingly Exorbitant ticket pricing by top multi- keeping masses away from cinemas that
across the Asia Pacific,” Chrys- “Pricing is an issue for a majority of the see more such experiments,” Puri added. plex chains in Tier-I markets cannot be has led to rampant piracy across the
Capital said. While Harbour- audience. They are ready to go for country.
Vest Partners and LGT Capital movies at slightly lower tariffs and that FILM FARE “We will have to look at revision
Partners led the structuring of is something we as exhibitors have to across the board. There are anyway
the continuation fund, UBS be mindful of,” Rahul Puri, managing SOME theatres plan MANY independent MUKTA A2 Cinemas TRADE experts say no big Hindi films lined up for the
Private Funds Group was the director of, Mukta Arts, which oper- to continue offering cinema owners are
discounts on specific considering general
issued a uniform ₹99 unreasonable pricing
ticket price for all keeps masses away
next few months, and in case of those
exclusive financial adviser to ates Mukta A2 Cinemas, said. films in partnership price reductions to showings of sports from cinemas, leading that have released recently, it isn’t
ChrysCapital. While the company is not looking with producers draw target audience drama Maidaan to rampant piracy uncommon to see viewers walking
Founded in 1999, Chrys- at reduction in prices across the out in the middle,” said Pranav Garg,
Capital has raised over $5 bil- board, it will look at pricing strategies managing director at Maya Palace, a
lion across nine funds and continually on a film-by-film basis, Puri Amit Sharma, managing director of the template for the rest of the country, two-screen cinema in Muzaffarnagar.
backed marquee companies said. He noted that the positive response multiplex operator Miraj Entertain- said Bihar-based exhibitor Vishek Chau- Garg reduced prices for the two films
including Infosys, Hexaware to Maidaan was driven by flat pricing, ment, agreed that low pricing or one- han, who believes ₹50-100 is the ideal released on Eid—Maidaan and Bade
Technologies, Bajaj Auto boosting attendance in the process. plus-one offers for specific films are price point to attract mass audiences. Miyan Chote Miyan—after seeing the
Finance, Mahindra Finance, Pricing is a double-edged sword planned in collaboration with producers Chauhan is in conversation to acquire lukewarm response to both and is con-
Axis Bank, Shriram Finance, across the industry at the moment. to encourage price-sensitive crowds, small cinemas across the state and adopt templating lowering rates at least for the
Torrent Pharma and GVK Bio. There is a section of high-end audiences especially on weekdays. a standard model for them—good pro- next few months.
MATRIMONIALS
GROOMS WANTED IndiaMART InterMESH Limited

CIN: L74899DL1999PLC101534
Regd. office :- 1st Floor, 29-Daryaganj, Netaji Subhash Marg, Delhi-110002, India
SC/ST Phone : (+91) (11) 3027 2100, E-mail : [email protected], Website : www.indiamart.com
WANT A suitable well established
Extract of Statement of Audited Consolidated Financials Results
match for a post graduate, manglik, for the quarter and year ended March 31, 2024 (INR Million except per share data)
5'5 tall, fair, 35 years old, beautiful
ST gond girl.Caste no bar. No dowry. Quarter ended Year ended
Contact with details and picture March December March March March
6265356016 Particulars
31, 2024 31, 2023 31, 2023 31, 2024 31, 2023
Audited Audited Audited Audited Audited
1. Total Income 3,919 3,470 2,995 14,074 11,659
2. Income from operations 3,147 3,053 2,668 11,968 9,854
3. Net Profit for the period (before Tax, but after share
of associate and exceptional item) 1,391 1,096 756 4,544 3,713
4. Net Profit for the period after tax 996 819 558 3,340 2,838
5. Total comprehensive income for the period
[comprising profit for the period (after tax) and
other comprehensive income (after tax)] 994 806 550 3,333 2,883
6. Equity Share Capital 599 599 306 599 306
7. Other equity (excluding revaluation reserves, if any) - - - 16,762 20,279
the Power to 8. Basic and diluted earnings per share
Think Ahead. Think Growth. (Face Value of INR 10 each) (In INR.)
Explore powerful narratives
Basic EPS 16.62 13.66 18.30 55.18 46.48
and expert analysis with (Not (Not (Not
Mint Specials annualised) annualised) annualised)
Diluted EPS 16.58 13.63 18.28 55.04 46.32
Scan Now To (Not (Not (Not
Download The App
annualised) annualised) annualised)
Notes
1 The above consolidated financial results have been prepared in accordance with the IndianAccounting Standards (referred to
as “Ind AS”) as prescribed under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting
Standards) Rules, 2015, as amended from time to time.
2 The above information is an extract of the detailed format of audited consolidated financial results filed by the company with
the stock exchanges under regulation 33 of the SEBI (Listing obligations and Disclosure Requirements) Regulations, 2015.
The full format of the above financial results are available on the Stock Exchange websites, (www.bseindia.com and
www.nseindia.com) and also on Company's website at www.indiamart.com
3 Dividend declared by the Company is based on the profit available for distribution. On April 30, 2024, the Board of Directors of
the Company have proposed a final dividend of INR 20/- per share in respect of the year ended March 31, 2024 subject to the
approval of shareholders at theAnnual General Meeting.
4 The summary of the audited standalone financial results of the Company for the quarter and year ended March 31, 2024 is
given below:-
(INR Million except per share data)
Quarter ended Year ended
Particulars
March December March March March
31, 2024 31, 2023 31, 2023 31, 2024 31, 2023
Audited Audited Audited Audited Audited
Total Income 3,442 3,300 2,878 13,086 10,517
Income from operations 2,993 2,914 2,562 11,390 9,388
Net Profit before tax and exceptional item 1,246 1,192 865 4,746 3,453
Net Profit after tax 923 916 675 3,621 2,722
For and on behalf of the Board of Directors
IndiaMART InterMESH Limited
Sd/-
Place : Noida Dinesh Chandra Agarwal
Date : April 30, 2024 (Managing Director and Chief Executive Officer)
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AhMedAbAd GLOBAL LIVEMINT.COM
NATO prepares to face Russia—and

problems of its own
Troops from member countries train for shoulder-to-shoulder fighting, while disputes over spending and additional members plague the alliance
Daniel Michaels “The integration of all the countries the near future, though recently British-made CVR-T reconnais-
[email protected] is a challenge,” said Canadian Army some military officials in NATO sance vehicles. Each requires dif-
ADAZI MILITARY BASE, LATvIA Lt. Col. Jonathan Cox, who helped countries said Moscow could be ferent spare parts and mainte-
lead Exercise Crystal Arrow, the strong enough to attack in a few nance.
N
ATO troops from 14 Latvian portion of the NATO years. Over the shorter term, they Standardizing big gear is daunt-
nations amassed last maneuvers, which include air, land worry that Moscow might spark ing because producing it is a lucra-
month in a wooded and sea drills across the alliance. conflict in nearby countries by agi- tive business that few countries
area here to take part NATO, which marked its 75th tating local Russians and using ten- want to surrender. The U.S. has
in the alliance’s big- anniversary on April 4, is getting sions as pretext to intercede, as the about three-dozen main military
gest military exercise since the Cold stronger in some ways. Finland and Kremlin did in eastern Ukraine a systems such as planes, ships and
War. Once again, the focus was Sweden have joined after decades decade ago. tanks. In Europe, where most coun-
Russia. of shunning membership. NATO’s Latvia joined NATO in 2004, 13 tries protect their national arms
The drill began in the early European members are spending years after it gained independence producers and often compete for
morning darkness with a warning: more on defense than they have from the Soviet Union. Since then, export orders, alliance members
Enemy forces had crossed Latvia’s since the Cold War. This year, for the alliance’s requirements and use 172 models, according to
border with Russia and were clos- the first time in decades, the Euro- standards have compelled Latvia’s NATO’s most senior military offi-
ing on the capital. Communicating pean members, on an aggregate armed forces to modernize. West- cial, Dutch Admiral Rob Bauer.
in various languages over different basis, will meet their financial com- ern military vehicles have replaced Smaller equipment can be prob-
kinds of radios, the troops raced to mitment to the alliance, NATO Sec- old Soviet models. lematic, too. Planners have strug-
push the mock invaders toward retary-General Jens Stoltenberg During the Crystal Arrow exer- gled for years to ensure that secure
wetlands that would bog down said recently. cise, a battalion led by Latvian Army field radios from various countries
their tanks. But the alliance is plagued by Lieut. Col. Gaidis Landratovs oper- are compatible, a challenge deep-
“What’s most important is to other disputes. Leaders disagree on ated alongside U.S. troops. They ened by the need for digital encryp-
demonstrate readiness to act whether Ukraine and other aspir- played forces invading from the fic- tion and measures to counter elec-
quickly and deploy to defend Lat- ing members should be allowed to This year’s NATO exercises, the largest since 1988, are being staged over four months through May. REUTERS tional nation of Occacus, identified tronic warfare.
vian and NATO borders,” said Lat- join. The contest to succeed Stol- with red Xs on their equipment. After the Cold War, such techni-
vian Army Col. Oskars Kudlis, who tenberg later this year has sparked cow had seized the Crimean Penin- defending against Russia is personal If Canada fails to meet its com- NATO avoids using names of real cal differences mattered little
was commanding a brigade of acrimony between longtime mem- sula and helped foment rebellion in because they previously were sta- mitments, “how does that reflect on adversaries in training. because NATO troops from differ-
heavy armored vehicles from a bers and newer ones from the Ukraine’s east, NATO members tioned at a base in western Ukraine, the coherence of the alliance?” said Canadian Lt. Col. Cox, tempora- ent countries rarely fought along-
position in the forest. The response former Eastern bloc. agreed to rotate troops constantly training local forces in the years retired Vice Admiral Mark Norman, rily stationed in Latvia to oversee side one another. Now, they need to
required troops from as far away as And many NATO countries, through its vulnerable eastern before Russia’s 2022 invasion. Two a former head of Canada’s navy who NATO’s international battle group be able to share equipment and
Canada and Albania to work out including six of its 12 founding members, specifying which mem- years ago, Moscow hit that base with recently visited NATO headquar- there, was commander of the know that one army’s cannons can
kinks in communications, absorb members, remain far from hitting ber nation would take the lead in missiles, destroying the barracks ters in Brussels. Canada would defending forces, which included fire another’s shells.
one another’s battlefield practices the military budgeting levels they defending each country. where Canadians had lived. probably increase defense spend- troops from 11 nations. When the Alliance planners have set equip-
and coordinate disparate weapons pledged to achieve a decade ago. The U.S. took the lead in Poland, Canadian Army Lt. Col. Dan ing only under duress “because the mock invasion began, his forces ment norms and worked to ensure
systems. That low spending has made them Germany did so with Lithuania, the Richel, deputy commander of the threat perception is just not there,” moved and took defensive positions, that gear operates interchangeably.
Ever since Moscow seized the the target of attacks from Republi- U.K. with Estonia and Canada with Latvian operation led by Col. Norman said of the prevailing opin- awaiting word on their attackers. But even for one of NATO’s most
Crimean Peninsula from Ukraine in can presidential candidate Donald Latvia. After Russia invaded Kudlis, was posted with his family ion inside Canada. Soldiers speaking different lan- basic standards, 155-millimeter
2014, the North Atlantic Treaty Trump, sparking doubts about the Ukraine in February 2022, NATO from Quebec to Latvia last August One of the alliance’s guages struggled to artillery shells, members produce
Organization has had its eye on alliance’s future if he wins in beefed up its forces in those coun- to help expand Canada’s presence. most fundamental Many NATO communicate. English 14 different models, Bauer said.
Europe’s border with Russia. This November. tries and added partnerships in Slo- Most of his colleagues in the local divisions is a disparity countries remain and French are Some shells can’t go into other
year’s exercise, called Steadfast Throughout vakia, Hungary, headquarters are Latvian. He has in how member coun- far from military NATO’s official lan- launchers, while some may fit but
Defender 2024, aims to send a mes- history, many Romania and started to learn the language, tries view threats. budgeting levels guages, but fluency not link to targeting software.
sage to Moscow: The alliance stands military allian- Bulgaria. though most routine business is NATO lists terrorism varies. Many of the nearly 200 different
they pledged
ready to defend its members— ces—including The partner- conducted in English, he said. and Russia as its main Another problem, weapons systems provided to
especially those near Russia’s bor- those that defeated Napoleon and ships have interwoven allies more NATO countries agreed in 2014 threats. Many officials to achieve a said Cox, was “radios Ukraine have come from NATO
der, including Latvia. won World War II—involved allied closely than at any time since the that by this year each would spend in Turkey and other decade ago that sometimes work nations. The hodgepodge has cre-
After the Cold War, differences armies operating separately under Cold War, when the U.S., Britain at least 2% of gross domestic prod- member nations along together and most of ated a maintenance nightmare for
in language, communications sys- common command. NATO’s objec- and France kept troops perma- uct on defense. the Mediterranean Sea the time don’t. But Ukraine, which has had to scrounged
tems and weaponry within NATO tive is to prepare allies to fight side- nently stationed in West Germany. Latvia, which was invaded by the are more worried about regional there’s always comms problems, no to obtain spare parts for many.
mattered little because its troops by-side. The Latvian exercise, staged near Soviet Union in 1940 and didn’t win conflicts, illegal migration and ter- matter what happens.” U.S. Army Capt. Malcolm Edgar,
rarely fought shoulder-to-shoul- This year’s exercises, the largest the capital, Riga, was one of NATO’s independence until 1991, will spend rorism than about Russia. Operations succeed because of who commands Abrams tanks and
der. Instead, many rotated through since 1988, are being staged over most international this year. Eleven 2.4% of its GDP on defense this Almost one-third of Latvia’s pop- simple plans and integration, he Bradley Fighting Vehicles in Lithu-
short-term deployments in four months through May, at loca- member nations that already had year, part of a plan to hit 3% in 2027. ulation of about 1.9 million people is said. “Every country has their own ania, said finding ways around dif-
Afghanistan, Iraq and elsewhere, tions stretching from the Arctic Cir- troops deployed in Latvia, includ- Canada allocates about 1.3% of its Russian, a legacy of Soviet times. way of doing it, but the intent and ferences is one benefit of multi-
planned long in advance. Equip- cle to the Black Sea. They involve ing Canada, were joined by forces GDP to its military and has no plan Tensions are high inside the coun- the effect was the same across the country exercises like Crystal
ment needs were clear and each ally roughly 90,000 troops, 1,100 com- from the U.S., Iceland, and Latvia’s to hit 2%. try and along its borders with Rus- battle group,” he said. Arrow.
handled its own provisioning. bat vehicles, 80 aircraft and 50 neighbor, Estonia. NATO’s Stoltenberg and U.S. sia and Belarus, an authoritarian Uniformity has long been a chal- “We’re not just saying we can do
Now, preparing for coalition naval vessels. Canadian forces stationed in Lat- NATO Ambassador Julianne Smith state under Moscow’s sway. lenge for NATO. In Crystal Arrow, this together,” but showing it’s pos-
warfare is once again NATO’s prior- The operation in Latvia was one via constitute Ottawa’s largest cur- chastised Canada this year for being NATO planners consider an out- allies deployed Canadian LAV-6 sible, said Edgar. “It’s all about get-
ity, and troops have to know how to of several staged near Europe’s bor- rent overseas troop deployment. among the only alliance countries not right Russian invasion of a neigh- armored vehicles, American, Ger- ting the sets and reps in.”
work together on the battlefield. der with Russia. In 2016, after Mos- For many of those Canadians, seeking to achieve the agreed target. boring member country unlikely in man and Polish tanks, and Latvia’s ©2024 DOW JONES & CO. INC.
Apple may be able to phone it in TikTok, Tesla just the start of US-China data clash
Dan Gallagher total revenue to rise less than Bloomberg not the first and will not be the Washington has moved to
[email protected] 2% year over year in the June [email protected] last Chinese company that US ban cars containing Chinese
quarter. lawmakers target,” she said. “It technologies such as LiDAR,
A T
pple’s biggest business Apple’s biggest challenge in he US push to ban Tik- would seem that tech decou- from the likes of Hesai Group,
is struggling. The fact the near term will be its long- Tok marks a new phase pling—or at least reducing fearing risks to US military
that investors are standing reluctance to talk in its approach to data dependence on the other — is sites. Hesai, the world’s largest
finally wrapping their arms about anything new. The com- security that could eventually becoming increasingly popular supplier of LiDAR, threatened
around that idea could turn pany has given strong hints impact everything from elec- among both parties.” legal action after the US put it
out to be a good thing for the about its interest in generative tric vehicles to health care, Data security is again taking on a list of “Chinese Military
company ahead of its expected artificial intelligence, but it reshaping trade relations center stage in the intensifying Companies.”
entry into tech’s AI party. remains unclear if that will between the world’s biggest rivalry between the US and China’s biggest EV stars like
It has been a pretty bleak Apple shares are already down manifest in new types of soft- economies. China as Biden faces a rematch BYD Co. Ltd. have little pres-
year so far for Apple. The fed- around 12% this year. AFP ware and services or in an President Joe Biden last in November with Donald ence in the American market
eral government is trying to AI-enabled iPhone. week signed legislation barring Trump, whose administration given high US tariffs, but the
break up the company’s already in a funk, down around Apple is widely expected to Chinese parent ByteDance sought to block countries from Biden administration has
closed-ecosystem for its App 12% this year. That is the worst lay out more of its AI vision at Ltd’s ownership of TikTok, a buying Huawei Technologies mulled restrictions that would
Store and—in a separate case— performance by far among its developers conference in move aimed at preventing Bei- Co. equipment for 5G net- A US law barring ByteDance’s ownership of TikTok is aimed at prevent Chinese makers from
challenge the lucrative pay- megacap techs valued at more June. Other big techs are focus- jing from accessing troves of works. Later Trump proposed stopping China from accessing data from American users. REUTERS moving cars and components
ments Apple gets from Google than $1 trillion. Microsoft, ing more on generative AI ser- data that the video sharing app a “Clean Network” to prevent into the US through third
every year to make the popular Amazon, Nvidia, Meta Plat- vices, but Apple’s hardware- collects from its 170 million Beijing from accessing sensi- Cars collect information on influence US public opinion. countries like Mexico.
search engine the default on forms and Google parent dominated business model American users. The law takes tive personal data of Ameri- drivers and passengers, while TikTok raised eyebrows last China has also been clamp-
mobile devices including the Alphabet have logged a means on-device AI could have a page out of China’s playbook, cans. medical devices can parse and month when it mobilized users ing down on overseas access to
iPhone. median gain of 23% for the a bigger impact on sales. viewing the potential misuse of While Biden hasn’t gone that process personal healthcare to petition against a potential data such as financial indica-
The company is also losing year. More notably, the drop “If Apple saw a 15% increase data as a national security far, the clash over data has intelligence. Washing ban, demonstrating its influ- tors, academic databases and
ground in China, a market that has put Apple’s multiple to in revenues, in line with the threat. picked up in recent months. machines, port cranes and even ence on Americans. even politicians’ biographies.
historically has accounted for around 25 times forward earn- OLED iPhone 10, this would Although Beijing has long China has been using its 2021 clothes connect to some sort of “Social media of all kinds, as Beyond its highly censored
about 19% of Apple’s annual ings, which is in line with its be a $30 billion uplift to reve- adopted far more restrictions data security law to step up remote server. The AI era only well as messaging apps and internet regime known as the
revenue. Three third-party five-year average and down nues,” Bernstein analyst Toni on US companies in China, supervision of sectors from promises to magnify those websites, can be and are being Great Firewall, Beijing has
market-research firms more than 16% from last sum- Sacconaghi wrote in a recent authorities have embraced agriculture to geography, and capabilities. used by foreign governments raised the alarm about foreign
recently issued reports show- mer, when hype over the com- note to clients. firms that play by its rules and the US is raising concerns over The TikTok-inspired law in to attempt to influence US pub- actors exploiting anything
ing Apple experiencing a pany’s Vision Pro mixed-real- The iPhone could use the agree to store data locally. Elon logistics networks, autono- US will extend to lic opinion,” said from geographic data — which
sharp drop in iPhone unit sales ity headset helped drive the help. Apple has long domi- Musk’s Tesla Inc. is a prime mous driving and drones. Fur- any “foreign China is clamping Milton Mueller, a it says could reveal critical
in main- stock above nated the premium category, example: Bloomberg reported ther restrictions risk carving up adversary con- down on overseas professor special- infrastructure and military net-
land China, 30 times. but smartphones are a mature Monday that it will partner with parts of the global economy. trolled applica- access to data izing in cyberse- works — to key information on
mostly T h a t market, with users holding on Beijing-based tech giant Baidu “It’s not clear where it ends, tion” that the like financial curity policy at food production, genetics, and
thanks to a should help to their devices for longer peri- Inc. for mapping and naviga- unless you want China to pro- American presi- the Georgia Insti- weather. Chinese authorities
indicators, and
resurgent Huawei Technolo- temper any negative reaction ods. The current iPhone 15 tion functions to deploy auton- verbially roll over and crawl dent deems a tute of Technol- have implemented complex
gies. Counterpoint estimates to what is expected to be a family is leading the third con- omous driving features — data into a corner, and obviously national security even politicians’ ogy. “TikTok is no approvals to transfer personal
that Huawei’s smartphone weak report. Analysts expect secutive cycle of weak sales; only entrusted to a select group that’s not going to happen,” risk. That could biographies different from data outside of the country, a
unit sales jumped 70% year iPhone revenue to fall 10% analysts project a 1% drop in of Chinese companies. said Rogier Creemers, an assist- change the oper- Twitter or Meta or widening ban on Apple’s devi-
over year in the March quarter year over year—the worst drop global iPhone unit sales for the The US now appears to be ant professor at the University ating landscape YouTube in this ces in state-owned companies,
while Apple’s slid by 19%. IDC for that key business unit in current fiscal year following a moving “away from an open of Leiden who researches for Chinese platforms like Ten- regard.” and restrictions on Tesla’s vehi-
estimated a more mild 7% drop more than three years. Reve- 4% decline last year and a gain internet with unrestricted data China tech policy. “As long as cent Holdings’s WeChat or Beyond tech apps, US law- cles in government com-
for Apple, though it also esti- nue from all of Apple’s device of only 1% in fiscal 2022, flows and towards selected risk exists, there’s always a rea- PDD Holdings’s Temu. While makers have scrutinized data pounds — even though both
mates that Huawei’s unit sales segments is expected to show according to consensus esti- fragmentation based on son to say we have not China-originated fast fashion security risks from other Chi- Apple and Tesla have fully
more than doubled in the a year-over-year decline for mates from Visible Alpha. national security concerns,” de-risked enough, so we need giant Shein is now headquar- na-owned companies. In Feb- localized the data they collect
same time frame. the period, which would be the An AI iPhone might or said Caitlin Chin-Rothmann, a to de-risk more.” tered in Singapore, it has also ruary, the Biden administra- in China.
Such a bum run of news first time that has happened in might not reverse that trend. fellow at the Center for Strate- AI era faced congressional scrutiny tion vowed to invest more than Xi has long seen data as a
would normally be a poor at least a decade. Service reve- Fortunately, Apple’s market gic and International Studies. New technology is creating given its vast supply chain net- $20 billion in port security, core pillar of his flagship “holis-
setup for Apple’s stock ahead nue is expected to rise 11% year value is no longer riding its “While TikTok is currently new risks. Modern devices are works in China. after flagging potential espio- tic approach to national secu-
of its fiscal-second-quarter over year. Hopes are modest new gadgets’ becoming sure- in the hot seat in part due to its becoming ever smarter, gain- Complicating TikTok’s case nage and disruption risks from rity,” as Beijing highlights
report, due Thursday after- for the company’s outlook as fire hits. enormous popularity and the ing unprecedented abilities to further is the worry among law- Shanghai Zhenhua Heavy growing risks of information
noon. But the shares are well; analysts expect Apple’s ©2024 DOW JONES & CO. INC. scope of its data collection, it is generate and transmit data. makers about China’s ability to Industries Co. Ltd.’s cranes. theft from cyberattacks.
LIVEMINT.COM NeWs Wrap WednesdAy, 1 MAy 2024
AhMedAbAd 11
NEWS
580 mn
THE NUMBER of employed people in
₹278.2 cr
THE NET loss reported by online retailer
136.6 T
THE DEMAND for gold in India in the first
$1.1 bn
THE LOAN amount approved by the
$25.7 bn
THE TOTAL compensation mining giants
IN FY23 in India, up 5% from 553 million in the FirstCry in the nine months ended quarter of 2024, up 8% from 126.3 tonnes IMF’s executive board for Pakistan, BHP Group and Vale SA offered to pay
NUMBERS previous fiscal, indicating a recovery post-
covid, as per Reserve Bank estimates
December 2023 on revenues of ₹4,814 cr,
as per its draft red herring prospectus
in the year-ago period, despite record-
high prices, as per the World Gold Council
marking the third and final instalment
of a $3 billion bail-out package
Brazil for a 2015 tailings dam disaster at
their joint-venture iron ore complex
HOWINDIALIVES.COM
Hyundai to launch NAVAL TRANSITION Indian Oil quarterly

hybrid cars in India profit falls 52%
H I
yundai Motor Group plans to launch its ndian Oil Corp. (IOC) reported a 52% fall in
first hybrid cars in India as early as 2026, fourth-quarter profit on Tuesday, on
three people aware about the plans said, inventory losses and as the company sold
as the South Korean auto group shifts strategy to fuel below market prices.
look beyond electric vehicles (EVs) and boost its While India is the world’s third-biggest oil
presence in a key market. importer and consumer, Indian Oil along with
The group, housing Hyundai Motor and Kia its unit Chennai Petroleum controls about a
Corp, is evaluating a hybrid sport-utility vehicle third of India’s five million-barrels-per-day
(SUV) of size similar to its top-selling, mid-sized refining capacity. India has been increasingly
Creta SUV in India, said two of the people cited buying cheap Russian oil, however, discounts
above. Both Hyundai, which is India’s second- have narrowed from $30 per barrel in 2022 to
largest carmaker, and Kia are targeting the less than $10 this year, while the refiners have
launch of hybrid SUVs in 2026 or 2027, the two also cut fuel prices at pumps ahead of the
people said, adding that their EV plans for India general elections this year.
were also on track. IOC reported a 52% fall in profit at ₹4,838
In a statement on Tuesday, Hyundai Motor crore for the quarter ended 31 March.
Group told Reuters it was “committed to a future Refiners buy crude oil and process it after a
of electrified mobility and will optimize product gap of 45-60 days. An inventory gain is booked
strategies for each market”. when oil prices rise by the time the company
The pivot to hybrids comes as Hyundai sees a refines the crude and sells the fuel. REUTERS
surge in sales of the technology in India. REUTERS
Admiral Dinesh Kumar Tripathi (right), the 26th chief of the Indian Navy, shakes hands with his predecessor, Admiral R. Hari Kumar, during a
guard-of-honour ceremony before assuming charge, at South Block in New Delhi on Tuesday. PTI
Sebi asked NSE to appoint a registered valuer to

AstraZeneca admits rare blood Samsung reported net income of $4.8 billion in
the March quarter. AFP
carry out valuation of the business.
NSE asked to assess

REUTERS
clot risk from covid vaccines Samsung’s profit

rises post AI boom
Linde India’s RPTs
S
amsung Electronics Co. topped analyst
M
arkets regulator Sebi has asked the earnings estimates after its
National Stock Exchange (NSE) to AstraZeneca is facing a lawsuit in the UK over allegations its jab had caused fatalities semiconductor division returned to
designate a valuer to conduct the profitability, as companies like Microsoft Corp.
valuation of related party transactions (RPTs) and Alphabet Inc. led a surge in spending on
between Linde India and Praxair India Priyanka Sharma fatalities and severe injuries in numerous instan- platelet count, which is crucial for blood clotting. artificial intelligence (AI) services.
following complaints by shareholders. The [email protected] ces. Victims involved in up to 51 cases in the UK “It is admitted that the AZ vaccine can, in very The world’s largest memory chipmaker
matter relates to various transactions and NeW DelHI High Court are seeking damages totalling up to rare cases, cause TTS. The causal mechanism is not reported net income of 6.62 trillion won ($4.8
agreements by Linde India Ltd (LIL) with its £100 million. known. Further, TTS can also occur in the absence billion) in the March quarter, versus the
B
related parties Praxair India Pvt Ltd (PIPL) and ritish drugmaker AstraZeneca admitted The vaccine, known by various brand names, of the AZ vaccine (or any vaccine). Causation in any average analyst projection for 5.63 trillion won.
Linde South Asia Services Pvt Ltd (LSASPL). covid vaccines could cause blood clots including Covishield in India, was developed in the individual case will be a matter for expert evi- That’s more than four times the company’s
Sebi investigated the case after receiving but said these were “extremely rare” UK and manufac- dence,” the drug- earnings a year earlier. The results underscore
multiple complaints alleging that transactions after more than 50 such cases were tured by SII in India. maker said. how demand for the memory chips that power
and agreements entered by Linde India with reported in the UK in patients adminis- These vaccines were Victims involved in up to 51 cases The company said modern electronics and artificial intelligence is
Praxair India were in the nature of material tered jabs that had been made by the Serum Insti- sold around the in the UK High Court are that from the body of starting to rebound after a severe downturn.
related party transactions (RPTs) and Linde tute of India. world. evidence in clinical The company’s shares rose 1% in Seoul trading.
India did not obtain shareholders’ approvals on The company said on Tuesday that patient Following the seeking damages totalling trials and real-world Samsung, also the world’s largest
these transactions. In its interim order passed safety is its highest priority. Regulatory authorities lawsuit, AstraZen- up to £100 million data, the AstraZene- smartphone maker, is trying to reverse a year-
on Monday, Sebi noted that Linde India was have clear and stringent standards to ensure the eca has expressed ca-Oxford vaccine long decline triggered by global economic
executing “related party transactions which safe use of all medicines, including vaccines, it sympathy for those has continuously uncertainty. BLOOMBERG
prima facie appear to be material, without added. The pharma company said regulators affected by adverse reactions to its vaccine. been shown to have an acceptable safety profile.
taking shareholder approval.” around the world have consistently stated that the AstraZeneca on Monday admitted in a legal fil- Covishield, a vaccine developed by AstraZeneca
Sebi asked NSE to appoint a registered benefits of vaccination outweigh the risks of ing in the UK that its vaccine can result in a condi- and Oxford University, was extensively adminis-
valuer to carry out a valuation of the business
foregone and received, including by way of
extremely rare potential side-effects.
The company is facing a class action lawsuit in
tion known as thrombosis with thrombocytopenia tered to the Indian population.
syndrome (TTS) in rare instances. TTS involves the Queries sent to the Serum Institute of India and
REC profit grows
geographic allocation. PTI the UK over allegations its vaccine had caused formation of blood clots accompanied by a low India’s health ministry remained unanswered.
33% in Mar quarter
S
tate-owned REC Ltd on Tuesday posted a
Mindspace REIT 33% rise in its consolidated net profit to
Adani Total Gas profit up 59% in Q4 ₹4,079.09 crore during the March
Q4 NOI grows 9% quarter on account of higher income.
The company had clocked a net profit of
crore in the January-March period as ₹3,065.37 crore during the January-March
M
indspace Business Parks REIT on against ₹104 crore in the same period a quarter preceding FY23, REC said in a
Tuesday reported 9% growth in net year back, the company said in a statement. regulatory filing. Its total income during the
operating income (NOI) to ₹476.8 The firm, which retails CNG to fourth quarter rose to ₹12,706.66 crore from
crore and declared distribution of ₹282.9 crore automobiles and pipes natural gas to ₹10,254.63 crore in the year-ago period.
to unitholders for March quarter FY24. household kitchen for cooking purpose, Total expenses were ₹7,477.18 crore in the
According to a regulatory filing, the company’s saw a revenue increase of 5% to ₹1,257 March quarter as against ₹6,353.40 crore in
NOI grew 12% to ₹1,895.9 crore in 2023-24. crore while Ebitda surged 49% to ₹305 FY23. For the entire FY24, the company’s net
Cumulatively, it has declared distribution of crore the quarter. profit was ₹14,145.46 crore, up from ₹11,166.98
₹1,136.2 crore to unitholders for last fiscal year. CNG sales rose 20% to 149 million crore in FY23. The income also rose to
Ramesh Nair, chief executive officer, K standard cubic metres and piped natural ₹47,571.23 crore in FY24 compared to
Raheja Corp Investment Managers Pvt. Ltd, gas sales were up 15% to 83 mmscm. India has the largest volume of investments ₹39,520.16 crore a year earlier.
manager to Mindspace REIT said, “We had a For the full fiscal year, the company globally for IFC, with a portfolio of over $8 billion. REC Ltd is a non-banking finance company
record quarter, leasing 2 million square feet, The company posted a net profit of ₹165 reported a net profit of ₹653 crore on a focusing on power sector financing and
making this our top-performing quarter since
going public.”
crore in the January-March period . BLOOMBERG revenue of ₹4,813 crore. This compared
with ₹530 crore net profit on a revenue of
‘India investments development across India. PTI
A benefitted climate’
“Our committed occupancy now stands at dani Total Gas Ltd (ATGL), the city ₹4,683 crore in 2022-23.
90.6%. With ongoing expansion projects gas retailing joint venture of Adani ATGL said it added 91 new CNG stations
totalling 4.4 million square feet, future group and TotalEnergies of France, to take the strength to 547 across the
DGCA suspends
I
development of 2.5 million square feet and on Tuesday reported a 59% rise in March geographies where it holds city gas licence. nternational Finance Corporation (IFC), a
potential leasing of 2.4 million square feet
vacant area, we are positioned for significant
quarter net profit on the back of a surge in
CNG sales volumes.
Total piped natural gas (PNG) homes
swelled to 8.20 lakh after adding 1.16 lakh
member of the World Bank Group, on Tuesday
said that its investments in India have benefitted senior Vistara exec
NOI growth.” Mindspace REIT said its The company posted a net profit of ₹165 new households. PTI climate and housing projects, small and medium-
A
committed occupancy stood at 90.6%. PTI sized businesses, and women. viation regulator DGCA (Directorate
IFC’s record year of work with the private sector General of Civil Aviation ) has
has benefitted 32 projects in India aimed to spur suspended a senior Vistara official for
jobs, boost private sector productivity, and drive lapses in conversion training of pilots, a person
Trudeau is cutting foreign students’ off-campus working hours financial inclusion while supporting the nation’s
ambitious climate goals for sustainable growth.
with direct knowledge about the matter said on
Tuesday.
“India has the largest volume of investments Vikram Mohan Dayal, vice president of
P
rime Minister Justin Trudeau’s government will cut the amount of time globally for IFC, with a portfolio of over $8 training at the full service carrier, has been
foreign students can work off-campus to 24 hours per week, part of its billion of which approximately 36% is in equity removed from his post, the person cited above
effort to curb the explosive growth of the program. investments,” it said. “IFC’s long-term said.
Immigration minister Marc Miller announced on Monday that the financing, including mobilization, more than There was no comment from Vistara.
government is ending a temporary policy, started during the height of labour doubled from $1.3 billion in FY22 to $3 billion in The Directorate General of Civil Aviation
shortages in 2022, that had allowed foreign students to work full time. The FY23. The total of IFC’s commitments and had conducted an inquiry into alleged lapses
measure had raised a previous 20-hour cap and faced criticism for helping board-approved funding so far in FY24 has in conversion training of some pilots. After
drive a surge in demand for foreign student visas because students could focus already surged to $3.8 billion (as of April 30, the conversion training, a narrow body pilot
more on working than studying as a potential pathway to citizenship. 2024), reflecting a robust trajectory,” it added. can operate wide body aircraft.
Still, Miller opted not to restore the previous limit, instead allowing foreign “As the climate crisis intensifies amid new The person mentioned above said that
students to work a maximum of 24 hours a week starting in September. The conflicts and fragility, this is a crucial year to lapses were noticed in the conversion
new cap will ensure students focus primarily on their studies while having the cement our focus on India, supporting the private training of little over 10 pilots and after the
option to work if necessary, his department said in a statement. As Canadian sector to drive impact and foster global and inquiry, the aviation regulator decided to
colleges and universities head into the summer session, students who have a regional integration,” said Riccardo Puliti, IFC’s take action against the airline’s training
scheduled academic break may continue working unlimited hours. BLOOMBERG Canada Prime Minister Justin Trudeau. PTI regional vice president for APAC. RHIK KUNDU head. PTI
AhMedAbAd LONG STORY LIVEMINT.COM
INDIAN RAILWAYS’
deFt BAlAnCIng ACt
Fixing the contradiction between future revenue growth and current affordability is a tough job
howindialives.com
NEW DELHI
A
few days ago, Sudhanshu
Sultania, a sociologist, posted
a video of an overcrowded
train coach on X, formerly
Twitter. Women, children
and men blocked the aisle; some slept on
the coach floor around the toilets, the
video showed.
“So many unauthorized persons are
travelling in my coach S3,” Sultania wrote
in the post. “The condition of the sleeper
class is worse than the general class. It is so
crowded that one can’t even walk to the
toilet,” he added.
In Indian railways, ‘sleeper class’ fea-
tures berths for sleeping and require res-
ervations. They can be both air condi-
tioned (AC) or non-AC coaches. ‘General
class’, seats aren’t usually reserved; they
are also the cheapest.
For the last few years, Indian railways
has consistently sought to push a narrative
of shifting to cleaner, faster, air-condi-
tioned and technically more advanced
trains. But it’s when this official story runs
into images and videos on social media of
overcrowding, and of passengers from
other classes squeezing into ‘higher-class’
coaches—even AC two-tier coaches—that
the railways is forced to confront the real-
ity.
There is little doubt that passenger
facilities for all railway classes need an
overhaul. The problem for the railways is
that its social role to provide a cheap
means of long-distance travel to millions
of Indians is often unprofitable.
Hence, this shift to more ‘value-added’
services is provided at a price. And often,
this is a price that a substantial slice of
train travellers may be unable to pay.
For years, the railways struggled to
make ends meet. After slipping deep into
the red due to the standstill enforced by
the covid-19 pandemic, the railways did
recover, but only just. In 2023-24, its
operating expenses fell marginally short
of its earnings from moving passengers
and goods.
While the problem of crowding in
Indian trains has always been there,
especially during the festive season when
millions make their way home to cele-
brate, it’s likely this problem will worsen
in the years ahead. That’s because the Indian Railways’ projections show a stronger growth of passengers travelling in AC coaches in the years ahead, and a slower growth in the pace of non-AC passengers. MINT
railways’ own projections show a
stronger growth of AC passengers in the
years ahead, and a slower growth in the
pace of non-AC passengers. from 2016-17 (on non-suburban routes). Railway Board issued a circular
While this is quite likely, this is where The vast bulk of passengers (over 90%) (CC-70/2022) increasing the composi-
mint QUITE A DISTANCE
SHORT
the numbers become important. At what travel in non-AC sleeper class or second tion of such trains from eight-nine AC STORY Revenue from AC classes is a large multiple of non-AC classes
pace will AC travel grow relative to sec- class. For economic as well as political coaches to 15, and reducing the number 2016-17 2022-23 Revenue ( per passenger km)
ond-class travel? And what will be the reasons, raising ticket prices in this seg- of non-AC passenger coaches from 11-12 AC classes Non-AC classes
growth in ticket prices between the two ment beyond a point is not possible. This to just five (with the remaining coaches WHAT AC first class + executive 2.84 Sleeper class (mail and express)
0.46
categories of travel? If the railways over- leaves the railways with the pricier being pantry cars or generator vans). 3.32 0.57
estimates growth in AC travel, and coaches. But even here, the railways Thus, even in these so-called ‘long dis- For years, the railways struggled AC sleeper
1.56 Sleeper class (ordinary)
0.40
to make ends meet. After 1.86 0.65
increases the share of AC coaches accord- hardly has unlimited freedom to raise pri- tance, non-premium’ type trains, a bulk
slipping deep into the red due to AC 3 tier
1.26 Second class (mail and express)
0.29
ingly, the slower growth in non-AC ces. Beyond a point, and on some routes, of passenger coaches are now for 1.37 0.42
coaches relative to non-AC passenger air travel begins to become a serious AC-class travel only. Remember, AC pas- the standstill enforced by the 1.33 0.21
AC chair car Second class (ordinary)
growth could increase overcrowding. alternative for passengers who would sengers are charged higher fares. pandemic, the railways did 1.87 0.15
Finally, the affordability of AC travel, otherwise take AC coaches. While the availability of second-class recover, but only just. Source: Railway budget, annual reports of Indian railways
which is what the railways wants every- berths has increased in absolute terms
one to shift to in future, is dependent on CAPACITY CONSTRAINTS between 2016 and 2022, due to more Mixed signal
NOW
broader income growth in the economy
for the vast mass of people. If those
incomes don’t keep pace with ticket pri-
A t this point, another problem arises
for the railways—that of the availabil-
ity of coaches to carry different classes of
trains being added, that increase conceals
wide disparities across different regions
(see chart). The railways are divided into 16 Indian Railways is introducing
The increase in second-class berths is uneven across railway zones
Average annual
growth in
Western
North Eastern 5.3
7.8
second-class
ces, travellers will be forced to travel in passengers. The Hindu reported, based on regional zones. Just three of these account newer classes of trains (like passenger capacity East Coast 4.3
cheaper coaches. If there are not enough data sourced using the Right to Informa- for about a third of second-class berths: Vande Bharat). It is also looking between 2016 and West Central 3.7
to increase the share of AC 2022 (in %)
cheap coaches to accommodate them, it tion (RTI) Act, that 52.6 million tickets southern zone (covering Tamil Nadu and North Central 3.3
will result in overcrowding across the that were waitlisted in 2023 were can- Kerala), western zone (covering Gujarat coaches in non-premium trains, Northern 3.0
rail network. celled, earning the railways ₹505 crore in and parts of northern Maharashtra, thus implying higher revenue. South Eastern 2.6
cancellation charges. Rajasthan and Madhya Pradesh), and the Northeast Western 2.5
TWO INDIAS While a shortage of northern zone (covering North India). South Western 2.3
In 2023-24, AC-class BUT
T he railways faces a
classic problem that
many consumer busi-
passengers (chair car, AC
berths relative to
demand is a problem
across classes of passen-
Four zones actually saw a decline in
the number of second-class seats and
berths between 2016 and 2022: central A substantial slice of train
South Central
Eastern
Southern
0.9
0.6
1.8
Note: Data covers seats and
berths on broad gauge lines
nesses face, which is that 2-tier and 3-tier, and AC first gers, it’s likely that this is zone (covering a large part of Maharash- travellers may be unable to
-0.1 East Central
only, and excludes seats in EMU
trailer coaches, which are used
a relatively small slice of particularly acute for tra), the north east frontier zone (cover- pay the price for AC coaches. mostly in suburban lines.
class) accounted for 11% of Affordability will depend on
-1.2 South East Central
passengers contribute a second-class and sleeping north east India), and the east central -2.5 Central Source: Annual Statistical
large chunk of its reve- all passengers, but well over er-class passengers who and south east central zones (together broader income growth in the Statements, Statement 10,
-6.2 North East Frontier Ministry of Railways
nue. In 2023-24, form the bulk of ticket covering east Madhya Pradesh, parts of Indian economy.
AC-class passengers 50% of revenue. buyers. According to Jharkhand and Bihar). Second-class pas- SATISH KUMAR/MINT
(chair car, AC 2-tier and annual railway data, sengers in the north east were particu-
3-tier, and AC first class) accounted for between 2016 and 2022, the share of larly hard hit, with second-class berths then computed average annual passenger existing passenger statistics for forecast- Since the seats in the unreserved category
around 11% of all passengers, but well over berths available to second-or sleeper-class available to them declining at a rate of growth rates in these two categories ing future demand. are limited, a meagre growth witnessed in
50% of revenue. In contrast, second-class passengers (excluding suburban passen- over 6% per annum between the two between 2008 and 2018. Between 2008 By doing this, the railways effectively this category.”
passengers accounted for three-quarters gers), fell from 88% to 82%. By 2019 itself, years. At the other extreme, the western and 2018, the LDAC category of passen- determines the outcome it is trying to esti- In 2020, the Railway Board chairper-
of passengers, but less than a quarter of the share had fallen to 82%. But covid-19 zone, covering the entire state of Gujarat, gers grew at 9.1% per annum, while the mate, since actual passenger numbers son had told press persons that in the
revenue. And interestingly, non-AC caused the railways to run more second- saw a huge bump in the availability of LDNA category grew at a rate of just 1.4% don’t take into account unmet demand, longer term, as part of its policy to
sleeper class passengers (on non-subur- class coaches, causing the share to rise to second-class berths, growing at almost per annum. which often exceeds the actual supply of increase the speed of trains, the railways
ban routes), accounted for 13% of passen- 85% in 2020. By 2022, however, the share 8% per annum. It then computed the ratio between coaches, as indicated by the huge number was looking to phase out non-AC sleeper
gers, but about 22% in revenue. had returned to its 2019 level. each of these growth rates, and the overall of passengers who get on to a waitlist only class altogether on trains running at
Seen another way, in 2016-17, the rail- Thus, the disparity between this share FUTURE PLANS population growth rate (at 1.1%). Assum- to be disappointed. higher speeds (130 kmph and above). This
ways earned ₹1.56 to move one passenger of seats for second-class passengers, and
in a two-tier AC berth for 1 km. This is the share of actual passengers travelling in
about 7.5 times what it earned from mov- these classes (around 89% in 2023-24), has
I n 2022, Indian Railways issued its
National Rail Plan (NRP) for India-
2030, in an attempt to “create a future
ing these ratios would hold in the future,
it then applied the ratios to projected
population growth rates in future years
Put another way, if the railways chose
to make available second-class coaches at
a much slower rate than AC coaches, it
along with the introduction of newer
classes of trains (like Vande Bharat), and
the ‘premiumization’ of even ‘non-pre-
ing a second-class passenger in a non- widened in recent years. In other words, ready railway system by 2030”. The aim (up to 2041-51) and computed the would show up in the final statistics as a mium’ trains by increasing the share of
mail/express train over the same distance. the railways has sought to address its pric- was to forecast both goods and passenger increase in passengers in these two cate- slow growth in the number of second- AC coaches (thus implying higher reve-
By 2023-24, because of progressive hikes ing dilemma by both increasing the price growth and demand, and hence aim to gories for each future year. Based on these class passengers, relative to that of AC nue per train), are all aimed at a fixing the
in prices in the upper tiers, that disparity and the availability of upper-class berths. build out rail infrastructure—both lines passenger demand forecasts, the esti- passengers. contradiction that the railways have faced
had widened to 13 times (see chart). and rolling stock—to meet that new mates for the future need for rolling stock It was precisely this disparity in growth for years, of resolving its social service
But it’s not as if prices have not been NON-AC TO AC SHIFT demand in the decades to come. was prepared. rates that was built into the passenger obligations, with the need to be profita-
hiked for cheaper coaches during this
period. Even for non-AC sleeper coaches T he older policy on mail or express
trains was to provide for 12 general
(mail/express or ordinary), revenue and sleeper non-AC coaches, and eight
To do this, the NRP split passengers
into two broad categories: long distance
AC (LDAC) and long-distance non-AC
While it’s quite likely that AC class
passengers will likely grow at a faster
rate than non-AC passengers, for no
forecast model used by the NRP. The
NRP’s authors themselves acknowledge
this, saying: “Reason for stagnation in the
ble. It remains to be seen whether these
changes will resolve this contradiction, or
only make it worse.
earned by railways for each passenger- AC coaches in a train of 22 coaches. This passengers (LDNA), with the latter includ- other reason than the low base, it’s growth of the unreserved/non-AC cate- howindialives.com is a search engine for
kilometre has seen an increase of 24-70% was changed in June 2022, when the ing second-class passengers. The NRP unclear why the railways chose to use its gory may be due to stagnation in supply. public data
LIVEMINT.COM MINT MONEY WednesdAy, 1 MAy 2024
AhMedAbAd 13
Why Sumit Shukla has funds Compare your bank FD rates

B ank fixed deposits (FDs) continue to be popular investment products not just
among senior citizens, who are looking for guaranteed income, but also among
tied up in NPS tier-II, not MFs investors who can’t stomach risk. But overexposure to FDs is not good, and you need
to assess your asset allocation and goals to decide how much money you should park
in them. For instance, saving for your child’s higher
education that’s 15 years away through FDs may
not be effective as the post-tax interest rate of an
FD may not give you a real return (return that’s
above the rate of inflation). But if you plan to take
a holiday in two years, an FD can help. Before
choosing an FD, you should compare the interest
Axis Pension Fund’s chief says fund management charges are lower and the returns better rates on offer. Here is a list of banks that offer the
highest FD rates for deposits up to ₹1 crore over
Sashind Ningthoukhongjam various tenures.
[email protected]
Interest rates (%) for fixed deposits up to ₹1 crore
WHAT'S YOUR
1
T
here’s no dearth of mutual ASSET MIX?
6 months 1 to < 2 2 to < 3 3 to < 5 5 years
fund (MF) advocates in the A Stocks 45%
asset management space. to < 1 year years years years and above
However, Sumit Shukla, B Fixed income* 20%
DCB Bank 6.25-7.25 7.15-7.85 7.55-8.00 7.40-7.90 7.25-7.65
managing director and chief C Real Estate 20%
executive of Axis Pension Fund, does Axis Bank 5.75-6.00 6.70-7.20 7.10 7.10 7.00
not fit into that universe. Shukla has D NPS 10%
been eschewing MFs in favour of less- E Equity MFs 5% HDFC Bank 4.50-6.00 6.60-7.25 7.00-7.15 7.00-7.20 7.00
er-known investment products for his
retirement kitty. His favourite is the IndusInd Bank 5.00-6.50 7.75 7.25-7.75 7.25 7.00-7.25
tier-II National Pension Scheme (NPS) 2 WHYIN NPS?
ONLY 10%
IDFC First Bank 4.50-5.75 6.50-7.75 7.25-7.75 7.00-7.25 7.00
funds.
As per available data, MFs command  Stock options RBL Bank 4.75-6.05 7.50-8.10 7.50-8.10 7.10-7.50 7.00-7.10
over ₹55 trillion in assets and tradi- skewed my portfolio
towards stocks. YES Bank 5.00-6.35 7.25-7.75 7.25 7.25 7.00-7.25
tional NPS tier-1 funds have assets Otherwise, I am big on
worth ₹1.75 trillion, while NPS tier-II NPS. ICICI Bank 4.75-6.00 6.70-7.20 7.00-7.20 7.00 6.90-7.00
funds only have ₹5,435 crore under its
hood. To be sure, an NPS tier-II SUMIT SHUKLA
Canara Bank 6.15-6.25 6.85-7.25 6.85 6.80 6.70
account is similar to NPS tier-I sans the 3 ANYTWEAK?
RECENT MD & CEO, Axis Pension Fund
tax benefits. The only advantage tier-II Dhanlaxmi Bank 6.50 6.75-7.25 6.50-6.75 6.50-6.60 6.60
accounts have over tier-I is that holders  I am planning to exit
some real estate. I am Federal Bank 5.00-6.00 6.80-7.40 7.05 7.00 6.60
can redeem the funds anytime. For
now, Shukla is putting a chunk of his
also increasing 6 WHATTIER-I NPS
ABOUT
8 ANYLESSON
FINANCIAL
10 ANY EXPOSURE TO
INTERNATIONAL
allocation towards FUNDS? FROM EQUITIES? Bank of Baroda 5.60-7.10 6.85-7.15 7.25 6.50-7.25 6.50
savings in tier-II funds with an aim of tier-II NPS funds. CHILDHOOD?  No, better
switching to the more tax efficient  I plan to transfer Indian Overseas Bank 5.75 6.90-7.30 6.80 6.50 6.50
structure of tier-I as he nears his retire- from tier-II to tier-I  When I was in class opportunities here. Like
ment age. Unlike equity funds that are 4 WHY NOT IN
MUTUAL FUNDS?
when I am nearing X, we suffered severe Sehwag telling Gilchrist: Punjab National Bank 6.00-7.05 6.75-7.25 6.80-7.00 6.50-7.00 6.50
retirement to get the “I will never play abroad,
taxed at 10% of the capital gains (held financial hardship after State Bank of India 5.75-6.00 6.80-7.10 7.00 6.75 6.50
 Tier-II funds only tax benefits. money's too little.”
for more than one year), NPS offers a my father suffered a
charge 9 bps as FMC.
tax free systematic withdrawal facility You can also switch stroke. Union Bank of India 4.90-5.75 6.50-7.25 6.40-6.50 6.50 6.50
of 60% of the corpus from age 60 to 75. asset classes for free. WHAT'S YOUR
7 RETIREMENT 11 ANYMONEY
INTERESTING
Jammu & Kashmir Bank 4.75- 6.00 7.05 7.00 6.50 6.50
Tier-II account has other things to SO, WHAT
boast. It charges a meagre 9 basis points
PLAN? 9 CHANGES DID ANECDOTE? Data taken from respective bank's website as on 25 April 2024; Only main entity of the merged banks are taken. Banks which merged
as fund management charge. This is 5 WHAT ABOUT THE

CONFUSION WITH  Targeting 5 crore in
YOU MAKE?  I asked my bank why with its main entity are removed from the table; The list of 15 banks is based on highest fixed deposit rates available for 5 years and above
my home loan rates are Source: www.Bankbazaar.com
way cheaper compared to the average ITS TAXATION? NPS. Withdraw  I have a 1 crore not lowered when
expense ratio of mutual funds. It also  That's an ambiguity. 4 lakh/month (age 60 family floater. I also overall rates were being
allows subscribers to change fund PFRDA or the IT dept to 75) at 12% without insisted that my wife cut. They lowered the
managers and shift between asset needs to make it clear. touching principal. start a business. rates after one email.
classes such as equity, government
bond fund and corporate fund without
any additional charges.
Shukla's retirement blueprint
Invest in tier-II NPS Funds Switch to tier-I NPS before 60
Mint's take
Exercise caution. There
The tax divide: How do Reit
“I am getting the average returns of
MFs at a much lesser cost,” said Shukla,
who is the former chief of HDFC pen-
Reason: Anytime withdrawal, tax-free
asset and manager switch plus low cost
Reason: Tax-free systematic withdrawal
of 60% corpus (age 60 to 75)
is no clarity on tax
during a switch to tier-I.
proceeds get taxed for NRIs?
sion fund. “The average IRR (internal *Includes Debt MF, EPF and sovereign gold bonds, MF: Mutual funds, NPS: National Pension Scheme, PFRDA: Pension Fund Regulatory and Development ISTOCKPHOTO
rate of return) of NPS funds is 12%” Authority', IT: Income tax, FMC: Fund management charge Harshal Bhuta
Each investor has their own preferences and risk appetite, do your own research before investing. Mint does not independently verify non-public data reported by
Shukla is aiming to build a corpus of interviewees.
₹5 crore in his NPS account. If he mana- I am an NRI (non-resident
ges to do that, he will be able to with- Indian) and my brother is a
draw ₹4 lakh every month without ties. He has 5% in various equity mutual will never play outside as the money is because she was a housewife. I keep resident. We both hold
touching his principal amount till he funds, 7% in NPS tier-I and about 3% in too small. Why go abroad when the telling her about this and pushed her to units of Embassy Park Reit.
turns 75. This is assuming a 12% return NPS tier-II funds. Although his savings opportunity is more promising here.” start her own business. God forbid, if We received various distri-
on the account every year. After 75, he in NPS tier-II is small compared to MFs, Lessons from childhood something happens to me, she can at butions from Embassy Park
can withdraw 60% of the corpus as a he’s now started putting in incremental Shukla recalls a harrowing experi- least sustain herself.” in FY2023-24, the latest in
lump sum. The remaining 40% has to savings there. ence from his childhood that left an Mint’s take February 2024. There has
be compulsorily invested in annuities. He also has a mix of sovereign gold indelible mark. He was studying in class While NPS tier-II offers funds at a been TDS (tax deducted at
Shukla agrees that there is an ambi- bonds, employee provident funds and X when his father suffered a major lower expense ratio and allows source) on distributions
guity on how tier-II funds are supposed debt mutual funds. This forms roughly stroke , slipped into a coma and had to switches between fund managers and such as interest and divi-
to be taxed and there is no mention 20% of his portfolio and the remaining be hospitalized for some time. Though asset classes for free, it might not be dend but at different rates
about it in the Income Tax Act. In a 20% is invested in real estate. “Sover- his father recovered from able to offer the variety for him and me. Will the tax
press meet in January this year, Pen- eign gold bonds have done well for me this trauma subsequently, Shukla has been that mutual funds do. treatment be the same for ASK MINT gets reduced against the cost of
sion Fund Regulatory and Develop- as gold prices have gone up but proper- he had to be hospitalized eschewing MFs There is only one type of both of us even if TDS is dif- m N R I TA X AT I O N
acquisition for future calcula-
ment Authority ties have not multiple times and this in favour of equity funds in the NPS ferent on some incomes? tion of capital gains. Whereas
chairman Deepak m GURU PORTFOLIO yielded much,” said took a toll on their family lesser-known structure and they are —Name withheld on request repayment of debt beyond the
Mohhanty told A MINT SERIES Shukla, who says finances. It did not help limited to the top 200 dividend income from Reit is issue price of Reit units is to be
journalists that this he’s now planning that his mother was a
investment It is true that TDS rates on
stocks. So risk takers taxable at applicable slab rates taxed under the head ‘Income
ambiguity will be cleared soon. There to sell some of his real estate. housewife. Shukla says he products for his might prefer other alter- interest and dividend income for a resident unitholder, it is from Other Sources’ at the appli-
has been no official statement since. Although Shukla has a house of his can never forget the finan- retirement kitty natives. But more impor- are different for a resident and not the same for a non-resident cable slab rates. This tax treat-
“I think the low cost structure and own, he thinks its better to stay in a cial hardship that his fam- tantly, it is unclear how a non-resident unitholder. TDS unitholder. Non-resident unit- ment remains the same between
the returns are worth it,” said Shuka rented accommodation than to own ily faced then. tier-II funds are taxed at rate on interest income as well holder bears 5% tax liability on a resident and a non-resident
although he agrees that there need for one. “I have a few friends who bought “That bitter experience convinced the time of redemption or when it is as dividend distribution to a interest distribution from Reit unitholder.
clarity on how tier-II accounts should big houses for huge sums of money but me about the need for medical insur- transferred to a tier-I account. It is resident unitholder of Reit whereas dividend distribution Harshal Bhuta is partner at
be taxed on redemption. “I also want to now their children have gone abroad. ance,” says Shukla. Later, he bought an advisable for people to wait for official (Real Estate Investment Trust) from Reit is taxed at 20% for P.R. Bhuta & Co. Chartered
have skin in the game,” he added. Even though they don’t need that expensive medical cover to insulate confirmation on how tier-II funds will is typically 10% whereas TDS such non-resident unitholder. Accountants.
Asset mix much space now, they cannot move to him and his family from such unfore- be taxed and then take an informed call. rate on interest distribution to Moreover, repayment of debt
Shukla’s portfolio is skewed towards a smaller house.” seen events. He now has a family floater NPS tier-I, however, is a great value a non-resident unitholder is 5% does not attract any TDS obliga- Do you have a personal
direct stocks as he received stock Shukla doesn’t have any interna- health plan with a sum insured of Rs.1 proposition from a retirement point of and TDS rate on dividend dis- tion whether it is for distribution finance query? Send in your
bonuses from his present and former tional investments because he believes crore. view due to its low costs, tax efficiency tribution to a non-resident to a resident or a non-resident queries at
employer. Due to this, nearly 45% of his that there are enough growth opportu- He also nudged his wife to start her (60% tax free on retirement) and its unitholder is 10% respectively. unit holder. Any repayment of [email protected]
and get them answered by
portfolio is in direct stocks even though nities in India compared to abroad. “It’s own business. “I didn’t want my wife to potential to benefit from the com- When it comes to tax liabil- debt up to issue price of Reit
industry experts.
he’s not allowed to invest in direct equi- like Shewag telling Gilchrist that he go through what my mom had faced pounding power of equity. ity, though interest income and units is not taxed as income but
INVESTORS SHOULD TAKE OWNERSHIP OF THEIR INVESTMENTS

knowledge, and create mental frameworks using different record. Look at the past performance for a better understanding
thought processes. This leads to lifelong learning and evolution of the risk-return matrix.
POWER of thought process.
This also has many parallels with the world of investing. Just
2. Look at the fee structure (fixed fee or performance-based
fees). Ideally, the interest of the fund manager should be aligned
POINT investing in traditional products, buying a house for self-con- with the investor.
sumption, or buying life insurance is not wealth creation. Invest- 3. Diversification should be done at multiple levels like mutual
V I N E E T S AC H D E VA ment is a complex activity, and finding the right investment solu- funds, portfolio management schemes, real estate and alterna-
tions is even more challenging in current times. If one does not tives. Within this, it should be in equity, fixed income, commodi-
We welcome your views and comments at have an investment background, the DIY (do it yourself) ties, quant, private credit, etc. As investors evolve over time, they
[email protected] approach will not only impact returns but may also lead to capital can add more sophisticated products
loss. Investors often to their portfolio.
T
he world of investing and wealth creation is full of opportu- In today’s world, the most preferred way to get any information overlook 4. Investors should continuously
nities and challenges. It therefore needs strategic and deep is through social media. People spend a lot of time on various enhance their knowledge by reading
thinking to grow and prosper. One needs to go beyond aca- platforms to consume information and, within a short span of fundamental books and meeting quality people.
demic learning and straitjacketed thoughts to find superior and time they start believing in the so-called ‘influencers’, without principles in This helps them to constantly look for
sustainable solutions. knowing their background, educational qualifications, experi- their rush for better investment opportunities/solu-
Regrettably, many individuals cease their pursuit of knowl- ence, and expertise. quick wealth tions.
edge upon completion of their formal education, assuming grad- Some influencers use marketing tactics to attract people’s 5. Keeping abreast of market trends
uation or professional certification as the culmination of the pro- attention, and people who lack investment knowledge blindly and economic indicators will help in
cess of learning. This highlights a systemic issue with our educa- trust the advice given by these so-called ‘experts’ without even making informed decisions. This includes staying informed
ISTOCKPHOTO
tional framework, which often prioritizes exam outcomes as the looking at the basic investment parameters like risk, liquidity, about geopolitical events, central bank policies, industry devel-
end goal. For this reason, most people stop reading as soon as and safety. They therefore tend to fall for these ‘quick money’ don’t even understand completely. Within a few trades, people opments, and emerging market trends.
they clear their graduation or professional course. schemes. have lost their lifelong saving, and retirement money. It is sur- Finally, while it's important to stay informed and adapt to
The simple activity of reading books has a multiplier effect not Human beings have been risk-takers from time immemorial. prising that most investors do a lot more research on buying con- changing market conditions, investors should maintain a long-
only on one’s career but also on their wealth. The ability to con- The recorded history of various bubbles over the centuries high- sumables like electronics, vacations, clothes etc. than on their term perspective. Short-term market fluctuations and volatility
sume knowledge at a high rate accelerates mental and profes- lights the basic human character of winning quickly rather than investments, which have a lot more long-term effect on their are inevitable, but maintaining a disciplined approach and focus-
sional maturity resulting in superior decision-making ability. A patiently. financial well-being. ing on long-term investment objectives can help investors ride
writer invests a copious amount of time to write a book, doing The fundamental principles of investing get ignored in the zeal Investors should do simple things when it comes to investment out market fluctuations and achieve sustainable wealth creation
in-depth research, expressing his feelings, storytelling, and of getting rich quickly. ‘This time it’s different’ is the most com- and wealth creation: over time.
showcasing a larger picture. The beauty of reading books is that mon phrase used in every scam/bubble. Investors end up making 1. Invest hard-earned money with the help of a fund manager Vineet Sachdeva is entrepreneur partner-quantitative equity
you can absorb knowledge from different fields, assimilate the losses in the race to do things by themselves from things they who has the required qualifications, background, and track investing, Alpha Alternatives.
AhMedAbAd VIEWS LIVEMINT.COM
OUR VIEW MY VIEW | ECo SquarE

ISTOCKPHOTO
The regulation of AI should take

its climate impact into account
AI is so costly for the planet to deploy that a cost-benefit analysis ought to guide its rules of usage
electric vehicle power-packs, and so on. gas emissions and eventually reversing
Combine this with the complexity that them that much more challenging.
accompanies the deployment of hybrid In other words, India and the world
systems such as wind-solar or offshore could be locking themselves further
wind-solar-tidal power, or other combi- into fossil energy use for much longer.
nations thereof. Planning and operating And, while we have little evidence on
such systems, in particular the vexed other environmental consequences of
challenge of demand and supply fore- AI, the adverse effects of fossil energy
casting, will greatly benefit from the use use on the planet is well established and
LEENA SRIVASTAVA of AI systems. In fact, AI will likely be may be proportionally attributable to AI
is an independent expert on climate indispensable for sustaining the green in the future.
change and clean energy. energy grid of the future. While AI is To remind ourselves, scientists have
already helping with the predictive identified nine planetary boundaries,
maintenance of current energy systems, staying within which would provide a
Credit penetration must

it is easy to imagine it playing a vital role safe operating space for humanity. We
in the maintenance of emerging sys- have crossed six of these boundaries,
I
ndia is undoubtedly a leading country tems that will be vastly more complex. capturing climate change, fresh water
in the deployment of artificial intelli- On the flip side, the energy guzzling use, air pollution, biosphere integrity
gence (AI) systems. A recent survey nature of the AI industry is assuming and plastics pollution—mostly attribu-
not become a nightmare on cloud complexity by NetApp, a data

infrastructure company, revealed that
70% of firms in India have AI projects up
and running, as against 53% in the US,
alarming proportions. A search driven
by AI could consume four to five times
the energy needed for a conventional
web search. It is estimated that the com-
table to our use of fossil fuels.
The relationship between AI and
energy becomes even more consequen-
tial in the context of climate concerns
and that 91% of the companies in India putational power required to sustain driving net-zero ambitions around the
plan to use their data to train AI models, the rise of AI is doubling roughly every world, the emerging jurisprudence
Wider loan supply is a vital economic pursuit in India, but app-driven lending is exposing as against a global average of 62%. 100 days. To achieve a 10-fold improve- around recognizing our right to escape
Globally, the AI industry is expected ment in AI model efficiency, demand the adverse impacts of climate change
people to coercive recovery tactics. The depravity these have sunk to gives credit a bad name to grow by 37% annually till 2030, with for computational power could surge by as a human right, and the rise of liability
great excitement over the opportunities up to 10,000 times. In Davos, Switzer- directives in the context of AI regula-
it creates as also trepidation on its mis- land, OpenAI’s CEO Sam Altman tion. The Supreme Court of India said in
use. Regions/countries like the EU, US sounded a warning on the vastly higher a recent judgement that climate change
T
hat credit is good can be taken as back-up norms for collateral-free lending, a and China are expected to implement power demand of the next wave of gen- impacts the constitutional guarantee of
a given. It plays an important role move aimed at keeping a fintech boom of app- sweeping regulatory measures to bring erative AI systems that energy systems the Right to Life, and that citizens have
about greater transparency, establish will have to cope with. The water a right to freedom from the adverse
in any economy. Loans given out given personal loans within prudential limits. new standards and address activities demands of the AI industry to cool data effects of our climate emergency.
foster economic expansion by This was done to reduce the chance of bank that pose a systemic risk to citizens, processors could be enormous too. Not only does the AI industry need
enabling commerce, typically done cushions being hollowed out by a default crisis. with the EU already working on a bill to Research on other environmental to take responsibility for its climate
by banks making use of people’s But a sharp reminder of the other scars that the institute an “AI liability directive” that consequences of AI is still in a nascent impact, every user industry too, by
savings held as deposits. Credit also helps credit business can leave was served in April, would provide financial compensation stage. However, staying with energy for virtue of its Scope 3 emission responsi-
to adversely effected people. India too is the moment, there is no doubt that the bilities, must weigh the costs and bene-
uplift those at the bottom of India’s pyramid when nine employees of loan-enabler Finsara cognizant of the need to develop a regu- world is off-track in meeting its sustain- fits of AI deployment carefully. We can-
who lack the monetary means to make a better were arrested in Gurugram on allegations of latory regime for AI, although it is likely ability goals. India’s renewable energy not afford to allow its use for frivolous
living, which explains our policy emphasis on using extreme tactics for loan recovery. As to be light-handed, at least initially, with programme, while impressive, has thus ends. Similarly, the regulatory regime
financial inclusion. Rural self-help groups for reported, the police had acted on a complaint potential job losses its special focus. far only helped make a dent in incre- needs to recognize the high cost of AI
microfinance are a key part of that mission. filed by a labourer who said digitally-made It is important, however, to recognize mental electricity demand and there- application—in terms of investments,
the two-way relationship between AI fore incremental emissions; it has not climate effects and other environmental
Yet, some parts of the country lag others on obscene images of her were posted online after and the energy sector. The electricity yet started taking emissions out of the factors—and provide clear AI-usage
credit uptake. A study published last year by she failed to repay a loan of ₹3,000, taken grids of today are only going to grow in country’s base of energy demand. guidance and incentives to contain
our bank regulator that covered 56 eastern dis- through the company’s app. The seizure of complexity, with multi-dimensional Unchecked deployment of AI could costs. India and Indian industry should
tricts of the 117 designated as ‘aspirational’ (for devices during a raid on Finsara’s office is said flows of electricity now integrating all increase incremental electricity work towards strong, precautionary
their backwardness), for example, found that to have revealed a scandal of sexual shaming in kinds of distributed and decentralized demand enormously, making the task and enabling regulatory regime for AI.
systems, including rooftop solar panels, of reducing the growth of greenhouse The sooner, the better.
bank credit as a proportion of deposits varies wide deployment as a threat. The police claim
from under 11% in West Singhbhum to over that links with 1,577 cases across the country
96% in Chandel. Data analysis showed that the have been traced, involving loans of almost ₹5
supply of banking services was the main driver crore. Even if these numbers seem small in the
of an aspirational district’s credit-deposit ratio. context of all-India lending, that such practices
For more loans to be extended, this suggests, exist at all is an outrage. And since not everyone
banks must reach farther into under-served speaks up, how rampant they are is a guess. www.livemint.com
New Delhi, Mumbai, Bangalore, Kolkata, Chennai, Ahmedabad, Hyderabad, Chandigarh*, Pune* Thursday, May 1, 2014 Vol.8 No.103 `4.00 in DelhiNCR/`5.00 outside DelhiNCR 24 PAGES
areas. This was also the stated goal of bank The depravity of even a few can hobble an PATENTS: No downgrade but India
still on US priority watch list >24
M&A: GE offers $17 billion for Alstom as
Siemens plans bid >7
nationalization back in 1969. The outreach entire market. For centuries, unregulated
TECHNOLOGY: Startups that can boost
your work productivity >9
CONTENT PARTNER
CORPORATE: Shriram City sells 10% stake to Piramal >11
afforded by the internet, however, has placed lending has had an exploitative image among
SENSEX 22,417.80 æ 48.39 NIFTY 6,696.40 æ 18.85 DOLLAR `60.31 æ `0.12 EURO `83.49 æ `0.23 GOLD `29,930 æ `155 OIL $107.85 æ $1.13
TWITTER@NARENDRAMODI
Climate change is real.

FLOUTING NORMS
FMC to meet QUICK EDIT
The coal on 6 May to Emerging
digital apps in the spotlight for taking credit the needy—if not for usurious charges, then for scam just
review MCX India
progress I ndia overtook Japan in
2012 to become the
third largest economy in
The science is compelling.

B Y A MI S HAH the world when national
K HUSHBOO N ARAYAN income is measured by
far and wide. In theory, this is a loan multiplier the arbitrary extraction of assets and services
························· purchasing power parity.
got deeper
MUMBAI It also became the ninth
T he commodities market
regulator said on Wednes-
day that it would meet on 6
largest economy when
market exchange rates
are considered. It is very
May to review the progress likely to have moved up
made by Multi Commodity Ex- one notch since then by
change of India Ltd (MCX) in overtaking Italy.
Govt panel to look into Mint couldn’t contact the FIRs filed: This selfie, complying with an order to cut These numbers were
like none other. In reality, it entails a risk we by moneylenders with no scruples. India And the longer we wait,
alleged diversion of spokesperson for B.S. Ispat Ltd
and repeated phone calls to the
and a speech after
voting, resulted in
its parent’s stake to at least 2%
from 26%, increasing the ur-
made available by the
World Bank this week
allotted coal by BS Nagpur office of the company PHASE 7: HEAVY two FIRs being gency for the completion of the when it released the
Ispat Ltd for suspected went unanswered. An email sent TURNOUTS CONTINUE registered against divestment. latest edition of its world
to the company on Monday had Narendra Modi on The Forward Markets Com- development indicators.
power generation elicited no response as of press DADRA AND TELENGANA+ the orders of the mission (FMC) had earlier giv- Ordinary lives have
time on Wednesday. The coal NAGAR HAVELI SEEMANDHRA Election en MCX until April-end to com- improved since 1990
B Y U TPAL B HASKAR
[email protected]
ministry officials did not respond
to an email seeking comment. 85% 70% Commission. ply with its 17 December order,
which declared Financial Tech-
despite some increase in
inequality. The numbers
must not under-estimate: Of credit taking a fought hard to end bonded labour, a form of
························· “This is a case where a compa- nologies (India) Ltd, or FTIL, on life expectancy, child
NEW DELHI ny is using the fuel for purposes JAMMU AND not “fit and proper” to run an mortality, fertility, use of
T
the harder the problem
he government has set up other than stated on which basis WEST BENGAL GUJARAT KASHMIR exchange. FMC also called for a contraceptives, school
an inter-ministerial panel
to investigate the suspect-
ed “diversion and theft” of coal
it was allocated the coal block.
While there have been other
companies who are adopting
81.35% 62% 25% forensic audit of MCX by Price-
waterhouseCoopers (PwC).
“The commission will meet
enrolment, access to
improved sanitation,
telecom usage and a host
in the case of B.S. Ispat Ltd, ac- this dubious practice, this partic- on 6 May to take a view and de- of other measures should
cording to documents reviewed ular case has caught the govern- DAMAN AND DIU BIHAR TURNOUT FOR 438 cision on compliance status of effectively demolish the
76% 60%
by Mint—possibly adding anoth- ment’s attention,” said the gov- SEATS TILL NOW MCX on implementation of ‘fit mistaken belief that
blow as a concept. slavery that debtors would be forced into. It’s

er layer to the scandal involving
irregularities in the allotment of
ernment official cited in the first
instance. 66.2% and proper order’ and action
on the PwC audit report,” FMC
economic growth has
only benefited the rich.
coal mines that is being probed B.S. Ispat’s website claims that (57.6% LAST But India still has a
ELECTION)
by the Central Bureau of Investi- the firm has “taken two coal PUNJAB UTTAR PRADESH TURN TO PAGE 24® long way to go. It is a
will be to solve.
gation (CBI) under Supreme
Court supervision.
Although the government is
mines on lease for a period of 30
years located at Marki & Mangli.
Coal is directly used for provid-
73% 59% Source: Election Commission ALSO SEE
>CNBCTV18: Jignesh Shah on the report
lowly 120 in the global
ranking when per capita
income is considered.
See Page 4
investigating just one such case, ing heat energy in railways, in- and the stake sale >P10
PARAS JAIN/MINT
there are other firms that are dustries and households and as a
Credit markets operate under the central a sad reflection of today’s tech-enabled times
suspected of the same wrongdo- reducing agent in some indus-
ing, said a government official tries.”
who asked not to be identified.
The scale of the irregularities
On 18 March 2008, Mint first
reported significant irregularities Jindal brothers BUSINESS STRATEGY
seems large, said Amol Kotwal,
associate director, energy and
power systems practice for South
in the Union government’s
award of coal blocks.
In 2012, after the Comptroller
in rival talks Tata’s Mistry looks to rural
Asia at consulting firm Frost and and Auditor General of India to save Italian
Sullivan. submitted a report in Parliament
India, asks firms to collaborate
bank’s watch. On Monday, as part of its effort that small-ticket borrowers can be deprived so
The inter-ministerial commit-
tee is investigating the alleged
alleging a notional loss of `1.86
trillion to the exchequer due to steel maker REUTERS
diversion of coal allotted for an the irregular allotments, CBI
associated sponge iron plant of started investigating allocation B Y K RISHNA N . D AS & B Y S HALLY S ETH M OHILE &
Nagpur-based B.S. Ispat—which of captive coal fields between C LARA D ENINA P .R . S ANJAI
has interests in coal mining, 1993 and 2010 as part of a Su- Reuters ·························
power generation and steel man- preme Court-monitored probe. ························· MUMBAI
ufacturing, according to its web- The government auditor also NEW DELHI/LONDON
T he Tata group has asked its
to stamp out unfair practices, the regulator luridly of dignity for their debts. Credit being a
site—for suspected generation of
electricity for commercial sale.
“While the captive coal block
was allocated for its sponge iron
plant, it is being used by the
company for power generation.
The power generated has been
sold to the grid,” said a second
claimed the blocks were award-
ed in an opaque manner.
On paper, diversion of coal
from a captive coal block is rea-
son enough for the allotment to
be cancelled.
“The guidelines for captive
coal block allocation very clearly
B illionaire brothers, Naveen
and Sajjan Jindal, could be
the answer Pope Francis is look-
ing for.
Their companies, Jindal Steel
and Power Ltd and JSW Steel
Ltd, are in competing talks to
buy parts of insolvent Italian
companies to collaborate
with each other in an effort to
serve India’s vast rural markets
more effectively, in a so-called
“routes-to-market” strategy
that is among the first of sever-
al major initiatives being
rolled out by Cyrus Mistry,
John F. K e r ry
government official who asked asked the applicant for the de- steel maker Lucchini, people chairman of Tata Sons Ltd.
warned lenders not to levy interest charges cal- good thing is far from clear to the vulnerable.
not to be identified. tails of the end-use project and with direct knowledge of the All Tata companies that are
upon allocation, the applicant matter said. “consumer facing” will try to
was required to submit an affida- Pope Francis earlier this share their networks in rural
vit that all coal mined from the month called for those in power areas, four officials at the con-
captive block shall exclusively be to use their “creativity” to resolve glomerate said. None of the
used in the end use project. Any Lucchini’s problems. Italy’s sec- four wished to be identified. Avoiding the limelight: Since taking over as chairman in late 2012, Tata
violation of that, in terms of di- ond-largest steel maker has tried The officials added that the group chairman Mistry has kept a low profile even as he has gone about
verting it to another project, to sell itself for years but has so plan is still at an early stage, building his team.
even if owned by the same group far failed to attract investors, but said Tata Strategic Man-
culated from the day of a loan’s sanction instead We must crack down hard on ugly recovery
would attract cancellation of the forcing it to recently begin idling agement Group, the in-house former BSE chief executive of- revenue group, companies
coal block,” said Debasish capacity and putting at risk up to management consulting arm ficer Madhu Kannan, who is in such as Tata Chemicals Ltd,
4,000 jobs. of the group, is working closely charge of business develop- Tata Global Beverages Ltd,
TURN TO PAGE 2® With Italy still struggling to with the companies and will ment; Mukund Rajan, in Tata Teleservices Ltd, Titan
emerge from its longest post-war launch a pilot project in the charge of ethics, communica- Co. Ltd and Tata Motors Ltd al-
NOTE TO READERS recession and unemployment
running at 13%, the highest level
next few months.
A Tata Sons spokesperson
tion, and corporate social re-
sponsibility; Harish Bhat, the
ready serve the rural markets,
but independently, said one of
The Media Marketing Initiatives on since at least 1977, the shutdown said the group had no informa- former CEO of Tata Global the four executives cited
Pages 19 and 21 are the equivalent of of another piece of industrial in- tion to share. Beverages who is a marketing above. The idea of the “routes-
of its disbursal. This was done on behalf of retail tactics before credit gets a bad name among
paidfor advertisements, and no Mint frastructure would underline the Since taking over as chair- expert; and N.S. Rajan, who to-market” strategy is to make
journalists were involved in creating deep problems facing the euro man in late 2012, Mistry, 45, was hired from audit and con- sure the companies draw from
these. Readers would do well to treat zone’s third-largest economy. has kept a low profile even as sulting firm EY to head human each other’s strengths and
Mint is also available for R8 with them as advertisements. he has gone about building his resources at the group level.
Hindustan Times in Delhi-NCR only TURN TO PAGE 2® team, which now includes At the $100 billion dollar by TURN TO PAGE 2®
borrowers. Last year, it had tightened capital those who need it most.
GUEST VIEW
Let’s use a behavioural insight to tackle climate change

and not a market-determined outcome. If one plots GHG emission levels on a affordable. A price mechanism for emissions the cash penalty imposed in both cases is
BAPPADITYA MUKHOPADHYAY However, we need ‘glocal’ (global and local) graph, globally as well as for India, expressed cannot succeed through market forces with- exactly the same, X, Thaler observes that the
commitments and actions to treat a clean as 1,000 tonnes of carbon dioxide equivalent out decarbonization policies acting as the first mechanism reduces the number of ciga-
environment as a basic right. per year, as well as India’s share in the global primary force on all polluters. This exposes rettes smoked much faster than the second.
While markets can solve complicated total, two facts would emerge. One, despite the idea to the risk of failure. Perhaps a more There is a lesson in this if we want to honour
problems, ‘market failures’ often make out- efforts and agreements, no dent has been effective way to cap GHGs is to go beyond our commitment to reduce GHG emissions.
I
n a remarkable judgement delivered on 6 comes worse than what would have been the made in the world’s total emissions. Two, economics and treat emissions as a violation A mechanism should be devised that cal-
April 2024, a day that should stay marked case if market solutions had not been relied India’s contribution, both of others’ rights. Is there a culates before the beginning of every year
memorably on our calendar, the Supreme upon. The risk of market failure and its in terms of absolute emis- good way to reduce GHG the GHG reduction each country must nec-
Court of India (SC) recognized that “….the potential consequences are even larger with sions and its global share of An approach levels for each country? essarily achieve. A monetary equivalent of
people have a right against the adverse carbon markets, given the nature of the them, is quite low. The Richard Thaler, a Nobel the same should be paid by respective coun-
effects of climate change.” And that “this ‘product.’ Consider a carbon-credit market, numbers highlight the based on the laureate in Economics, has tries into a global pool. Then, depending
right and the right to a clean environment… a trading system in which carbon credits are familiar North-South made some behavioural upon the actual GHG emissions throughout
[is] necessary to articulate... as a distinct bought by entities that have positive green- global divide and raises the
SC’s climate observations that may be the year, the balance would be credited back
is a professor of analytics and

right. It is recognised by Articles 14 (right to
equality) and 21 (right to life).” The SC judge-
house gas (GHG) emissions from others who
remove these air pollutants. As with most
question of inequitable cli-
mate-action burdens.
ruling combined useful. He asserts that the
design of contracts may
to the country from that global pool. Com-
mitment amounts for every country can be
finance at the Centre of
Excellence for Sustainable
ment clearly spells out that the right to
health (under Article 21) is impacted by fac-
markets, this mechanism, deployed under a
policy that exerts CHG reduction pressure
Unless strictly enforced
and fast-dropping limits
with nudge yield drastically different
outcomes even if the even-
drawn from historical as well as projected
GHG emission levels. In a democratic set-up,
Development, Great Lakes tors that degrade the environment. on all entities, punishes polluters by making are imposed by policy on theory could tual payoffs are identical. explaining to citizens why the government
Institute of Management, It is not only the judgement of 6 April, but them pay for emissions and also incentivizes overall emissions within To illustrate this, he cannot recover a sum pledged at the start of
Gurgaon. the manner and context in which it was organizations to capture these gases. Thus is various markets, larger deliver results offers a simple experiment. the year will probably prove far costlier than
made that is of particular significance. The the price mechanism expected to deliver an market mechanisms could Consider someone trying explaining why a fine must be paid.
country’s top court was due to hear a case optimal path to net-zero emissions. worsen that inequality. to quit smoking. He can opt If countries consider the right to a clean
related to the survival of an endangered spe- However, as we are already way beyond Activities that boost economic growth and for either of two disincentive schemes: One, environment a basic right, they must adopt
cies, the great Indian bustard. The case was permissible GHG levels, the crucial question create wealth will continue to sustain emis- leave $100 with a friend and at the end of the processes that actually enforce this right. Ex
posted for hearing in August, but the broad is whether we can afford to rely on a market sions, while raising the purchasing-power of day get back an amount of $100 minus X, post penalties could come later. This is what
climate-change judgement was uploaded on mechanism to optimize reductions. For one, emitters to buy more carbon credits. The where X is the number of cigarettes he a ‘rights’ guarantee is all about. It can’t be
the court’s website months ahead of it. The cleaning the environment will always fall result would be higher emission levels over- smoked throughout the day. Alternately, the infringed and then compensated for later.
ruling sends out an important signal by rec- badly short of emissions. Global emissions all, and low GHG emitters might find carbon person can pay his friend amount X if he India has made all the right noises. We now
ognizing a clean environment as a basic right data highlights the precarity of it. credit prices raised by demand and thus less smokes X cigarettes during the day. While await actions that can show others the way.
LIVEMINT.COM VIEWS WEdnEsdAy, 1 MAy 2024
AhMEdAbAd 15
GUEST VIEW M I N T C U R AT O R
Expand political risk insurance Trump is scaring Republicans

away from saving planet Earth
to help our businesses go global His popularity has led his party members to deny climate change
Outbound FDI is crucial for Indian firms to expand globally but coverage gaps in what local insurers offer must be plugged
ISTOCKPHOTO
MARY ELLEN KLAS

is a politics and policy columnist for
Bloomberg Opinion.
ARJUN GOSWAMI, ADITYA

RATHORE & DIYA NARAG
are, respectively, director of public policy,
senior associate, and an associate at Cyril
Amarchand Mangaldas.
A
fter decades of refusing to acknowl-
edge the link between human activ-
ity and a warming planet, most con-
servatives [in the US] no longer deny that Donald Trump’s climate denial is making
I
nternational news in India at the beginning of climate change is real. Republican-led Republicans follow suit REUTERS
2024 was dominated by a publicized phase of states have advanced proposals for devel-
diplomatic tension between India and the oping renewable energy and are investing clean-energy backtracking is costing jobs.
Maldives following Prime Minister Narendra in clean fuel tech. Southern-state gover- Trump has called for the elimination of
Modi’s visit to the Union territory of Lakshad- nors have embraced the green jobs boom the clean-energy tax credits contained in
weep. This was followed by an order by the created by US President Joe Biden’s Infla- the Inflation Reduction Act and promised
government of Maldives asking Indian troops to tion Reduction Act by taking credit for it to slash incentives for EVs if he is elected.
leave the archipelago nation. while cutting ribbons at new electric vehi- It’s become uncool for anyone who sup-
However, this wasn’t the first time the relation- cle (EV) and battery manufacturing plants. ports Trump to own an EV. So it’s no sur-
ship between the Maldives and India has been But as it becomes clear that Donald prise that EV sales are far below expecta-
disturbed. If we go back a decade, in 2013, Malé Trump will win the Republican presiden- tions and that automakers have scaled
had asked Indian infrastructure giant GMR to tial nomination, there has been a notable back or delayed production.
leave. After protracted arbitration, GMR was retrenchment in the commitment of The decline in EV sales led Rivian Auto-
awarded $270 million in 2016 against claimed many GOP clean-energy advocates. motive to indefinitely pause construction
losses of $800 million. Republicans across the country are of a $5 billion production plant in Georgia.
Jindal Steel faced a similar fate in Bolivia when it reversing course for fear of triggering And in South Carolina, Albemarle sus-
had to walk out of a multi-billion-dollar project fol- Trump, who has repeatedly called climate pended plans to break ground on a $1.3
lowing a scandal over encashment of bank guaran- change a “make-believe problem,” even billion plant to manufacture EV batteries.
tees by the Bolivian government. The Indian com- suggesting that the concept was a “hoax” This short-sighted thinking is going to
pany was awarded $22.5 million against claimed concocted by China. hurt more than jobs. Bob Inglis, a former
losses of over $100 million. In Florida, where Governor Ron DeS- Republican congressman from South Car-
Given such instances, Indian industries wanting antis broke with Tea Party-led climate olina who lost his seat in 2010 because he
to spread their wings beyond Indian shores have deniers in 2016 and acknowledged that campaigned on fixing the climate crisis,
been seeking political risk insurance (PRI). “humans contribute to what goes on says precious time is being lost in the fight
Despite market demand for PRI, the question is around us,” the Republican-led legislature to adopt policies aimed at halting the
whether this should be a significant policy matter, has sent him a bill that requires all referen- damaging changes.
given the robust growth of India’s economy and ces to “climate change” be deleted from “The scientists are ringing in my ears
growing set of domestic and international inves- state statutes. DeSantis is likely to sign it. saying, ‘Faster, Inglis faster.’ We don’t
tors. There is general euphoria about the India To DeSantis and Republican legislators, have time for to wait,’’ he told me. He
story and the arrival of Amrit Kaal—a propitious climate change may be menacing their founded an advocacy organization,
phase for turning India into a developed country. state, but it’s someone else’s problem. republicEN.org, to work with conserva-
The continued buoyancy of Indian markets in the invested in facilities across the globe in pursuit of Rupee-denominated PRI policies are not ade- Republican House Speaker Paul Ren- tive climate activists. “A majority of Amer-
wake of the covid pandemic, slowdown in China such an advantage while expanding operations. quately useful for businesses as the Indian rupee ner, who represents the Palm Coast area icans, including a majority of Republicans,
and conflicts in Ukraine as well as Palestine has The future expansion strategies of Indian busi- has been depreciating in value against the US that was pummeled by Hurricanes Idalia and an even larger majority of young
demonstrated the confidence of investors in the nesses must stay cognizant of the emergence of dollar for years. Thus, the assured sum may not be and Ian, defended the retreat from use of Republicans, believe the science of cli-
India story. Strong domestic markets, of course, some developing nations as major suppliers in the sufficient to cover losses over extended periods. the words “climate change,” claiming the mate change, and want to see our leaders
are indispensable to a robust economy. coming years. The drive for decarbonization Both backward and forward integration are bill’s intent is to keep energy cheap and put forward serious solutions,” George
However, to transform India into a global eco- across industries has been driving demand for long-term endeavours and necessitate insurance reliable. For him, it’s fine to throw tax- Behrakis, vice president of Young Con-
nomic power, Indian businesses must expand their critical minerals that go into clean-tech solutions policy coverage for longer periods of time. Also, payer money into fortifying homes and servatives for Carbon Dividends said.
footprint beyond domestic markets. Outbound from such countries. This presents an opportunity the frequent renewal of short-term rupee-denomi- businesses against windstorms, floods and Despite being out of touch with most
foreign direct investment (FDI) will be instrumen- for backward integration by Indian businesses nated policies issued by Indian insurers is cumber- rising seas instead of focusing on policies Americans, Trump has doubled down on
tal in accomplishing this business expansion. through outward FDI. some and perhaps motivates businesses to opt for that would help prevent the damage in the his derision for climate change “because
India’s outward FDI imperative may be under- The outward FDI path, however, is not free of risk cover from international insurers that operate first place. “So if the climate’s changing, if it excites some part of his base,” Inglis said.
stood from two perspectives: hurdles. Some relatively untapped markets are overseas. that’s going to have negative consequen- The result is a Republican Party stuck
One, India and Indian businesses must have a particularly prone to high political risk, unfortu- Globally, most national PRI providers offer risk ces, [then] we put aside a bunch of money between advancing an optimistic market-
strategy to identify and capture markets abroad nately. Given this backdrop, PRI is a tool for busi- coverage in foreign denominated currencies. This for flooding and resilience,” Renner said. driven solution to the problem and anger-
through forward integration in largely untapped nesses to mitigate and manage risks arising from includes the UK, where insurers offer 60-plus local There is no ‘if.’ Earth’s climate has ing the retribution-driven Trump.
and underserved regions such as Africa and South the adverse actions or inactions of governments. currency options for PRI. For Turkey, its Exim changed because of decades of green- With the loudest mouth on the planet
America. Many of India’s small technology-ena- As a risk-mitigation tool, PRI helps provide a more Bank offers coverage principally in dollars and house gas emissions from fossil fuels. spewing misinformation with his anti-
bled companies could move quickly into global stable environment for investments in developing euros, although it also offers many other options, Property insurance rates in Florida have clean-energy narrative, it is no surprise
markets. For these ‘born global’ startups and countries. It also eases the access of companies to like the Japanese yen and British pound. In Japan, risen 57% between 2015 and 2023 and its that Trump’s followers are parroting him.
micro, small and medium enterprises (MSMEs), finance on good terms. specific policy conditions are laid out for insurers residents already have wasted, as Renner Of course, that won’t matter when another
outward FDI may be a critical means of business In India, some private insurers and ECGC Ltd, to provide foreign currency denominated pay- says, “a bunch of money,” because people hurricane blows through the US south this
expansion. a state-owned insurer, provide PRI. However, outs; these include dates for applicable foreign-ex- keep building and rebuilding in places summer. But never mind talk of policies
Two, in a globalized world, sourcing of raw there is a major challenge that contributes to an change conversion rates for such payments. prone to these natural disasters. aimed at preventing the destruction these
material can play a significant role in businesses observed under-utilization of PRI by Indian busi- To facilitate the growth of Indian businesses Maybe Renner is hoping to extract cam- events bring. It’s all just a hoax we should
gaining a competitive advantage. Therefore, nesses as an effective tool for expansion: the low outside India, India must overcome this problem paign contributions from the fossil fuel ignore to ‘make America great again,’ as
unsurprisingly, some Indian companies have availability of US dollar-denominated PRI policies. associated with political risk insurance. industry—like Trump and DeSantis. The Trump’s slogan goes. ©BLOOMBERG
MY VIEW | Ex MACHInA
Muralidharan’s take on governance is quite refreshing

investments into the institutional founda- and more have meant that incentives rarely suit their learning requirements will make it inequities rather than mitigate them. This is
RAHUL MATTHAN tions of the Indian state” was in 1950. Since align with effective governance. possible for children in the same class to why, he explains, it does not have an entire
then, all we have done is increase our expec- For instance, the sinecure of government learn at different speeds. section to itself.
tations of what the state must provide us jobs has made civil servants risk averse. They In his chapter on justice reform, he sug- These are concerns I’ve heard before and
without making necessary investments in its have no interest in innovation because not gests a technology solution to reduce delays, even spilt ink trying to defend. And while
capacity to deliver. only do they see no financial upside, should proposing the establishment of a portal on there is truth to what he says, technology is
S
ince so much of my work lies at the One of the reasons for this, Karthik the experiment fail, it could literally cost which lawyers can seek adjournments in such an essential arrow in the quiver of the
intersection of law and technology, I’m argues, is that Indian citizens had universal them their career. Simi- advance, so that the court modern bureaucrat that I don’t think any
always interested in theories of gov- adult franchise right from the country’s larly, they have no incen- can process these requests treatise on improving governance can be
ernance. If I can understand how govern- birth, unlike those of other nations. Where tive to be frugal, seeing His book stands asynchronously without complete without engaging with it.
ance works, I believe I will be better other countries pursued development at the how every paise they save wasting time that should be Reading through the book, one is struck
informed as to how technology can be used cost of initially disenfranchised interest will be taken out of their out for the reserved for arguments. He by the fact that without the political will to
to make it more effective. Which is why, ever groups (women, minorities and the like), budget next year. also proposes establishing a effect change, the suggestions it makes are
since I heard that it was being written, I’ve Indian politicians had to appease everyone Technology rears its
solutions it digital land-record system of little practical relevance. Politicians oper-
is a partner at Trilegal and also

been waiting to read Karthik Muralidharan’s
tome, Accelerating India’s Development.
and as a result could take no short-cuts. This
is why as powerful as universal adult fran-
head off and on through-
out the book, showing up
offers India to bring more certainty to
land titles, so that we can
ate on five-year timescales and typically
have no interest in pursuing governance
has a podcast by the name Ex
Machina. His Twitter handle is
This, in many ways, is a remarkable book,
not just because of its size (at 800 pages, it
chise has been for democracy, it has affected
the pace of our development.
like R.K. Laxman’s Com-
mon Man in a variety of dif-
but underplays reduce the volume of real
estate disputes in India.
reform—projects that typically that take
longer than that to show success.
@matthan could easily do duty as a doorstop), but He points out a number of ways in which ferent contexts. In the the role of While it was good to see But it is here that the book is at its most
because of how it has been written. It’s Indian bureaucracy falls short of its poten- chapter on education, Kar- these scattered references, optimistic. Karthik argues that Indian voters
neatly organized into bite-sized essays that tial, many of which came as a surprise to me. thik shows us how it can be technology I was expecting better cov- are increasingly appreciative of good gov-
are easy to digest, with each chapter building For instance, even though we think Indian used to solve the quintes- erage of the role of technol- ernance. He has evidence to show that
on those before it to collectively contribute civil servants are underpaid, I learnt that sential challenge of class- ogy in governance. Given reforms can bear results within a politicians
to the grand argument. Most importantly, they earn, on average, far more than their room education: that teaching aimed at the the success of India’s digital public infra- term of office. Both these factors, coupled
unlike so many books of its ilk, instead of just counterparts in the private sector. This is average student is neither sufficiently chal- structure, I thought the book would at least with a very human desire to leave behind a
focusing on what is wrong with the Indian why government jobs are so highly sought lenging the more intelligent, nor simple devote a chapter to it. Karthik’s explanation lasting legacy, offer some solace that change
state, it offers implementable suggestions as after. I also learnt that the Indian bureauc- enough to be understood by those strug- is that technology is just an enabler and not might come.
to how to make it better. racy is not bloated, but woefully under- gling to keep up. Educational software that the panacea for all that ails Indian govern- Which is why despite the seemingly pessi-
The starting premise of the book is that staffed, with just 16 public officials for every can assess the competence level of students ance. He worries that as useful as it can be, mistic initial premise, this is such a refresh-
the last time we made any “systematic 1,000 citizens (China has 57). These factors and dynamically adjust the teaching plan to technology has the potential to exacerbate ingly optimistic book.
AhMedAbAd BUSINESS OF LIFE SPORTS LIVEMINT.COM
Have we got the squad to A mix of the old guard,

returning aces and fresh
faces offer the hope of
a balanced squad. But
win the T20 World Cup?

Sumit Chakraberty
ALL PHOTOGRAPHS AFP
can Rohit Sharma’s
men win the Cup?
PTI
[email protected]
I
ndia’s T20 World Cup squad,
announced on Tuesday, includes
Sanju Samson and Shivam Dube,
who are going great guns in the
Indian Premier League (IPL) this
year. The question is whether they will
play or warm the benches, because the
selectors have also included big name
players Virat Kohli and Hardik Pandya.
In fact, except for opener Yashasvi Jais-
wal replacing K.L. Rahul, the batting
lineup appears identical to the one that
underperformed in the 2022 T20 World
Cup semi-final against England. Whether
coach Rahul Dravid and skipper Rohit
Sharma will shake things up by including
Samson and Dube in the playing 11
remains to be seen.
OF SPINNERS AND DEATH OVER

SPECIALISTS
The best news is the return of Rishabh
Pant as wicketkeeper-batsman after Rishabh Pant (above), and Yuzvendra Chahal (left) are back in the Indian squad after a
recovering from a long injury layoff to long hiatus; and Sanju Samson (below) adds great depth to the squad.
make a scarcely believable comeback in
the IPL. Leg-spinner Yuzvendra Chahal the left-handers, Pant could bat at No. 4,
also returns to the team after a hiatus, with SKY at 5 and Dube at 6.
following three great IPL seasons for
Rajasthan Royals (RR). However, despite
INDIA T20 Dube fits the role of a lower order pow-
er-hitter better than Pandya, who has
his heroics this season, he’s likely to be a
backup to all-rounder and left-arm spin-
WORLD CUP refashioned himself as a middle order
batsman in the past three years. He can
ner Ravindra Jadeja and left-arm leg-
spinner Kuldeep Yadav, except for the
SQUAD bowl a few overs of medium pace too,
although IPL’s impact sub rule has denied
unlikely event of India fielding three Rohit Sharma (Captain), him the opportunity to do so.
spinners. Yashasvi Jaiswal, Virat Kohli, Given similar playing conditions to
Mohammed Siraj and Arshdeep Suryakumar Yadav, Rishabh India in the West Indies and US, the
Singh, both going at an economy rate Pant (WK), Sanju Samson (Wick- selectors have done well to include most
around 9.5 in the IPL, are Jasprit Bum- etkeeper), Hardik Pandya (Vice- of the IPL’s top performers. And they took
rah’s partners in pace. Neither of those captain), Shivam Dube, Ravin- the tough decision to leave out K.L.
two is a death overs exponent, mostly dra Jadeja, Axar Patel, Kuldeep Rahul, whose IPL strike rate is even lower
relying on swinging the new ball to take Yadav, Yuzvendra Chahal, Arsh- than Kohli’s.
wickets. The selectors needed to think CAN KOHLI CUT IT? deep Singh, Jasprit Bumrah, Yashasvi Jaiswal had a blip at the start of
out of the box here. The question is how India’s lineup com- Mohammed Siraj the IPL season after scoring two double
RR medium pacer Sandeep Sharma’s pares with those of other top teams. centuries in the series against England.
clever use of wide yorkers and slow England, for example, took a punt by RESERVES: Shubman Gill, The T20 format made him hyper-aggres-
bouncers have given him an economy including Jofra Archer for his extra pace, Rinku Singh, Khaleel Ahmed, sive. But a match-winning unbeaten 104
rate a shade over 7 in the IPL. This places despite the speedster’s injury issues keep- Avesh Khan in 60 balls against Mumbai Indians (MI)
him below only Bumrah and the Tobag- ing him out of competitive cricket since last week reconfirmed his status. The left-
onian Sunil Narine among bowlers who May last year. And in Jos Buttler, Phil Salt, right opening combination of Jaiswal and
have delivered 15 overs or more. He and Will Jacks, they have three power-hit- CAN HARDIK PANDYA KEEP Sharma will be a match for any opposition,
would have been handy at the death. ters at the top. OUT SHIVAM DUBE? like Travis Head and Fraser-McGurk for
India have suffered in the past when The T20 game is on a rocket ship. When Another hard call for Dravid and Sharma Australia possibly.
Arshdeep proved too expensive in the you see Jake Fraser-McGurk take a base- to make, depending on how India’s group The Indian skipper, Rohit Sharma, who
final overs. ball hitter’s stance at the start of an innings games go, will be the choice between vice- turned 37 on Tuesday, has carried on in
Another miss is Mayank Yadav, who and hit 23 sixes in six IPL games, you know captain Hardik Pandya and Shivam Dube. the IPL from where he left off in the ODI
made a sensa- it’s a new game. Pandya’s been bowling sporadically at a World Cup last year. With a strike rate
tional start to Will Jacks high economy rate of around 12 in the IPL. around 160 and a healthy average, he fits
his IPL season, Rohit Sharma and Rahul Dravid smashed 10 His batting average around 25 at a strike right in with today’s power-hitters.
bowling at 155 will have to get the playing 11 sixes in a 41-ball rate around 150 makes him neither a mid- But unlike in that final in Ahmedabad
kmph for six 100 for Royal dle order run-getter nor a cameo finisher. no Indian fan likes to be reminded about,
wickets in his right for India to have any hopes C h a l l e n g e r s There’s little to justify a slot for him in the the skipper needs to be more assertive in
first two games for a second T20 World Cup Bengaluru Indian 11 as an all-rounder on current persuading his senior colleague, Kohli, to
before pulling a (RCB) against form. He will need a dramatic turnaround follow his lead of batting selflessly for the
side muscle. Gujarat Titans in the rest of the season, beyond a couple team. Personal milestones have been a
The selectors could have taken a punt by (GT) on Sunday. Indian icon Virat Kohli Similarly, Kohli’s 50 in 40 balls on a bat- where the 2024 T20 World Cup will be of outlier performances. bane of Indian cricket, and the World Cup
keeping him in the 15 and seeing how he too got 70 in 44 balls, but his was a sup- ting paradise in Adelaide in 2022 led to a hosted right after the IPL, are similar to Dube, on the other hand, has been a will only come home if the team is placed
shapes up in the rest of the season. Austra- porting role. humiliating loss to England in the semi- what we get in India—either batting- consistent destroyer of bowlers in the first. India’s loyal fans deserve no less.
lia did that with Travis Head last year, who Despite the knock against GT, Kohli’s final of the last T20 World Cup. He will friendly or slow. So the ability to go hard in middle overs. He has been transformed Rahul is an example of an outstanding
was on the bench despite being injured strike rate for the season remains below need to rediscover his pre-2020 avatar the powerplay, and against spinners later, into a T20 superman after coming batsman who has let a self-preservative
before the ODI World Cup. That paid rich 150, which compares poorly with strike for India to post challenging totals in the will be vital. Conversely, bowlers who can under the tutelage of M.S. Dhoni at mindset put shackles on his stroke-mak-
dividends in the end. rates of successful top order batsmen of modern T20 era. trip the onslaught will win matches. Chennai Super Kings (CSK) in 2022. ing. He had a strike rate of nearly 160 in
Overall, the selection smacks of ticking other teams. His tendency to knock the It’s evident in the IPL that the success of The squad does contain a batter who is This year, he has been even more the IPL back in 2018, which got him into
all boxes and taking no chances. Whether ball around for singles in the middle overs teams has depended heavily on risk-tak- an alternative to Kohli for the No. 3 posi- impressive, hitting bouncers with the Indian team. Since then he has been
that will bring home the cup that has has hurt both RCB and India. ing hard-hitters, especially at the top of tion. And that is Samson, who has a strike aplomb, while continuing to put the holding back to avoid getting out, and now
eluded India since winning the inaugural Kohli and K.L. Rahul had a 67-run the order. Sure, you have the odd batting rate of 161 with an average of 77 in the IPL. heebie-jeebies into spinners. With a he has paid the price by missing out on
T20 World Cup in 2007, we will find out partnership in 18 overs, at less than 4 an collapse as a result, but conservative Both are higher than Kohli’s numbers, and strike rate of 172, along with an average selection for the 2024 T20 World Cup.
next month. The team does have a num- over, in the 2023 ODI World Cup final approaches have failed more often. it’s not as if Jaipur has a better batting sur- of 58 in the IPL, he should be a certainty That’s a good lesson for every batsman in
ber of match-winners. India lost to Australia in Ahmedabad. The pitches in West Indies and the USA, face than Bengaluru. in the Indian middle order. To break up the Indian team.
Shashank Singh’s hard work pays off at the IPL this year
From being coached by Kings (PBKS), Singh has had the kind of tive local leagues. undone by a raging Jasprit Bumrah (three
influence on his team that just a few other “The few innings I batted (for Hydera- wickets for 21 runs).
Brian Lara to starring players, like Shivam Dube for Chennai bad), when I went to bat, it was more of a “I just got deceived by Bumrah. For the
for Punjab Kings, Super Kings (CSK), have had. In nine difficult situation as compared to this year. first time after like a decade, I faced him—
matches so far (before Punjab’s match But I could have been smarter. I could we had played once at the DY Patil Sta-
Shashank Singh speaks against CSK on Wednesday), Singh has have chosen better bowlers to hit. But this dium (in Navi Mumbai). Someone like
to Mint about his journey 263 runs at an average of over 65 and a
strike rate of nearly 183.
year, my batting is coming a bit early. I’m
getting six, eight overs.”
Bumrah, you have to see the ball first
because that’s a different, awkward action
But more than the runs scored, what is In PBKS’s last match, against Kolkata and his slow one completely beat me.”
Arun Janardhan more important is the way he has scored Knight Riders (KKR), Singh came in to bat Singh had a word with MI’s Suryakumar
[email protected] them and how it has shaped the result— at number four, with Punjab 178-2 in the Yadav, the world’s number one ranked
often in Punjab’s favour. 13th over and chasing a target of 261. T20 batter, before the IPL about, as Singh
W
hen Shashank Singh was at It was in the team’s fourth match of the Opener Jonny Bairstow (108) was blazing puts it, “batting with intent”. “People tell
Sunrisers Hyderabad (SRH) in season, against Gujarat Titans (GT) earlier at the other end. Singh ended unbeaten me to stay cool, stay positive but I have
2022, the team’s batting coach this month, that Singh found himself with 68 off 28 balls, his eight sixes adding realised that I have a lot of experience. It’s
and strategic advisor Brian Lara told him coming in at 70-4 in the 9th over, chasing to Punjab’s total of 24 in the innings, as not an overnight change. It’s all those five-
that while power hitters like Andre Rus- 200. His 29-ball 61, in the company of PBKS won by eight wickets with eight six years of actual experience.”
sell, bat at number six or seven, he was not debutant Ashutosh Sharma (31 off 17), took balls remaining. It is currently the highest This IPL has seen several high scores of
one of them. Lara told Singh not to com- the team to its second win in four matches. ever successful T20 chase. over 250 in an innings, as a consequence
pare himself with “bang-bang sloggers” “While I was sitting in the dugout, I was “I’ve improved as a player,” he says. of smaller grounds, quality of power hit-
because he was a “proper batsman”. told that I would be batting at number six,” “That I can tell you because what I was last ters and, Singh adds, practicing with new
“You are smart, so make sure that you says Singh over a Zoom call. “The first year, I’ve improved, because I’m finishing techniques and spending enough hours
use your smartness. He told me that I can thing which came in my mind was all games. I realized it late, that you score on the ground to develop new skills.
be unique in my own way,” Singh remem- those years I always wanted to bat up the Shashank Singh in action for Punjab Kings at the IPL. AFP runs, you don’t score runs, if the team is Success may have come a little late for
bers Lara telling him. “I’m not someone order because, obviously, every batsman not winning, it doesn’t matter. I’m staying the 32-year-old, used to the drudgery of
who will just slam from ball one, I’m not a would love to bat for more overs rather IPL teams in the past, Delhi Daredevils room or over a game of table tennis, where there at the end and finishing games.” long travel on local trains in Mumbai for
bottom-end player who will just hit long than just for two,” he says. and Rajasthan Royals (RR), he got an the West Indies legend used to talk about In two other matches, he came close to small rewards, but he is enjoying it.
sixes. He told me to use my technical “I knew that if I stay till the end, most opportunity to play with SRH two seasons street smartness, what angles Singh taking his team home. Against SRH, “When you take a one-hour local train
knowledge. It’s not that I need big muscles likely I’ll be able to finish the target. It was ago. The results were not impressive—a should use, what his strengths and weak- Singh’s unbeaten 46 off 25 in the com- from Churchgate to Virar or Kandivali,
or big power only to hit sixes.” more of spending time on the wicket and few innings in 10 matches, 69 runs at an nesses were, had a profound effect. More pany of now-trusted ally Sharma (33 off you make sure that you score a hundred.
Lara’s words have stayed with Singh, not playing any fancy shots, which I have average of just over 17 and a decent strike importantly, Singh learnt to let go of a few 15) took PBKS to within two runs of Otherwise, that struggle of one hour will
and their impact is visible this season of not played before… more of watching the rate of around 145. But there were learn- things, lessons that were not difficult to Hyderabad’s total. Against Mumbai Indi- be disappointing. I am lucky that way. It
the Indian Premier League (IPL). Batting ball and reacting to it.” ings in those stints. understand for a cricketer who has gone ans (MI), they fell short by nine runs in feels good when you score and your team
in the middle-lower order for Punjab While Singh has had stints with other Conversations with Lara in the dressing through the grind of Mumbai’s competi- the chase, when Singh (41 off 25) was is winning. Everything feels good.”

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AHMEDABAD, New deLHi, mumbai, beNGaLuru, kOLkata, cHeNNai, Hyderabad, cHaNdiGarH*, PuNe*, LuckNOw* VOL. 18 NO.

Wednesday, May 1, 2024

IT Inc starts to worry if AI will RPG Group in for a makeover

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Wednesday, May 1, 2024

Think Ahead. Think Growth.

mint primer QUICK EDIT

IPOs by flexible Deepfake

Kaka the footballer’s former wife,

mint Election Bites

THE BIGGEST ELECTORAL

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Data since 1962; excludes by-polls.

Currency market mess

Widening yield gap with US puts

2 Oil Price Tail Risk The currency impact of higher oil

3 China Exposure Slower growth in China hurts currencies of

Currencies are weakened by the

5 Economic Growth Sustained economic growth is

PEANUTS by Charles M. Schulz

Wednesday, May 1, 2024

Indian railways’ deft Three airports to soon start

IT Inc starts to worry if AI RPG exits comfort

will hit reputation, profit a quiet makeover

Monitoring, internal controls to Services cos’ registrations

Retail, auto, new ulent transactions.

India rejects Sikh

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FOR ANY QUERIES/DELIVERY ISSUES

UK banks and building societies authorized 61,325 home

SHAILENDER KUMAR SKOCH CEO OF THE YEAR - IT

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SKOCH AWARD FOR INDIA’S PATRIOTIC PROFESSIONALS

Full body scanners at B’luru, Decline of remote

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check front- airports of the country, including

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‘Manipal Hospitals to continue expansion’

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‘India can beat China in electronics space’

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hindustantimes htTweets www.hindustantimes.com

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AHMEDABAD, New deLHi, mumbai, beNGaLuru, kOLkata, cHeNNai, Hyderabad, cHaNdiGarH, PuNe, LuckNOw* VOL. 18 NO.