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91

Monday, April 15, 2024

World weighs risks of Israel Online gaming, payment apps

livemint.com retaliation uP1 lead IPL ads uP1
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Monday, April 15, 2024

Think Ahead. Think Growth.

mint primer QUICK EDIT

West Asia flares Biden’s

up again: what it war test
In a dreadful moment for the
means for India world, Iran fired hundreds of
drones and missiles at Israel on
Saturday, although about 99%
BY N. MADHAVAN were claimed to have been inter-
Iran has attacked Israel directly after Israel bombed its consulate in cepted by Israeli and allied for-
Damascus, Syria, sending tensions in West Asia zooming once again. ces, with losses kept down by an
As the world waits nervously for Tel Aviv’s response, Mint looks at the iron dome to damage of an army
implications for the rest of the world, including India. base and a child’s injury. Tehran
had retaliated against Israel’s
strike on its consulate in Syria
and its United Nations message
was that the “matter can be
deemed concluded”. With a
symbolic point made, this offers
Israel, with the US rallying back
to its defence after some dither-
ing, a chance to call it quits. Yet,
an escalation that sends regional
hostility and oil prices flaring is
running red-hot as a risk, unless
US President Joe Biden can con-
vince Israel not to hit back. A
wider conflagration in West Asia
may result in an oil shock at a
The remains of a rocket booster after Iran launched missiles towards Israel. AFP
time inflation has shown signs of
What just happened in Is an all-out war now a settling down, globally, to give
1 West Asia?
In a departure from its long-term
2 possibility?
That depends pretty much entirely
economies everywhere a chance
to expand faster. Biden’s political
policy, Iran attacked Israel directly on how Israel responds to this prospects already seem injured
late on Saturday taking tensions in direct attack by Iran. After the by US backing for a war that has
the region to a new high. The attack, Iran said that “the matter claimed thousands of civilian
attack was in response to the can be deemed concluded” lives. The Gaza War’s rising
bombing of Iran’s Consulate in indicating that its response to the death toll may also have
Damascus on 1 April, ostensibly by Consulate bombing is complete.
inflamed opinion against the US
Israel, that killed senior Iranian Israel may not view it to be so. Its
military commanders. Under Prime Minister Benjamin across the Islamic world. Biden’s
pressure from hardliners, Iran Netanyahu warned that “whoever leadership challenge is to cap
launched cruise and ballistic harms us, we will harm them”. A and roll back hostilities— for
missiles apart from over 300 strong Israeli reaction risks everyone’s sake.
drones at the Jewish state. Most of pushing the two countries into an
them were intercepted and the few all-out war, possibly dragging the
that got through caused minimal US into it. To be sure, US and UK
damage. Earlier in the day, Iran’s forces are already involved in this
Revolutionary Guards seized a
container vessel purportedly
latest escalation. They have shot
down Iranian drones over Jordan,
MINT METRIC
owned by an Israeli billionaire. Syria and Iraq. by Bibek Debroy
REUTERS

Benjamin Schreiber is finally dead.

3 How is the world reacting to
the conflagration?
Leaders from across the world have
In prison an unusual life he led.
condemned the Iranian attack and called
Earlier he died, but that was brief.
for immediate cessation of hostilities. US Doctors revived him to great relief.
President Joe Biden also re-affirmed his
country’s “ironclad” commitment to
Life sentence was served - so he said.
Israel’s security. World leaders called for
restraint to lower tensions in a volatile
An anti-missile system in action region which risks descending into chaos.
after Iran’s attack. The implication of that will be significant.
QUOTE OF THE DAY
Our focus is on dignity of life ...
4 How badly will the
world be impacted?
The immediate impact will be
5 And how will India be
affected?
The crisis comes just when India
on quality of life, our focus is
higher oil prices. Crude oil, already seems poised for rapid economic
also on creating jobs
trading near six-month highs, may growth. Inflation is coming under through investment.
cross $100 per barrel if tension control and industrial production
worsens. The benchmark Brent is gathering pace. Add to this
Crude is trading at $90 levels now. strengthening consumption and
An all-out war will cause supply reviving private investment. A war
chain disruptions as Iran will could derail all this. Though
execute its threat to shut down imports from Russia have NARENDRA MODI
Suez Canal. All this will push increased, Arab states account for PRIME MINISTER
inflation up just when developed two-thirds of India’s oil needs.
countries are looking to reduce Higher oil prices will push up
interest rates. Global economic inflation and delay any interest
growth could fall below the 3.1% rates cuts critical to boost GDP
that the International Monetary growth. Merchandise exports,
Fund has projected for 2024. already sluggish, will drop further.

THE WEEK AHEAD

KEJRIWAL PLEA VODA IDEA FPO
18 APR
15 APR

Supreme Court set to hear Arvind Kejriwal’s peti- Vodafone Idea set to open ₹18,000 crore fol-
tion challenging his ED arrest. low-on public offer (FPO).
15-19 APR

USSD CALL STOP Q4 RESULTS

15 APR

Telecom department to stop USSD-based call for- Infosys, HDFC Bank, Bajaj Auto among companies
warding to tackle surge in online fraud. to announce their financial results for Q4 FY24.

WPI INFLATION POLLS SEASON

19 APR
15 APR

Wholesale price inflation data for March to be Lok Sabha elections to kick off with polls in 21
released. states & UTs.

ZEE-SONY MERGER RBI MPC MINUTES

19 APR
15 APR

NCLAT to decide next course of action in Zee- Reserve Bank of India to release monetary policy
Sony merger. meeting minutes.
 PLAIN FACTS

Why the cement sector

could see a gold rush
BY HOWINDIALIVES.COM

C
ement producers have gained from the post-covid surge in the housing market, which accounts for about 60% of
the sector’s revenues. Among the cement companies whose shares are listed on stock exchanges, four of the top seven
by market capitalization outperformed the BSE Sensex in the past year. Anticipating continued growth in housing
demand, industry and infrastructure, the sector is rolling out large-scale capacity expansion, which could create excess capac-
ity and depress prices. To counter that, bigger players are stepping up on consolidation to have better control over pricing.
In 2020, when the pandemic set in, the number of housing units sold in the top seven cities dropped 47% to 138,000. How-
ever, over the next three years, housing sales rose 70%, 54% and 30%, respectively, to reach 476,000 units in 2023.
That momentum has continued into 2024. In March alone, housing sales in the top seven cities increased 41% compared
with March 2023, according to real estate portal PropTiger. Additionally, after the pandemic, there has been demand for
larger houses in big cities, as customers accommodated working from home.
In the US, commercial real estate prices have crashed, in part due to the work-from-home phenomenon. In India, though,
commercial real estate is picking up, too. It’s projected to grow 7-8% this year, as per real estate consultant Knight Frank.
During his recent visit to India, Blackstone chief operating officer Jonathan Gray said India was “probably one of the few
markets in the world where we’ve seen rents grow and vacancies decline in the last 12 months”.

Four of top seven cement stocks have After a dip in 2020, housing sales
beaten the market surged in big cities
Change in share price in past year (%) Number of houses sold in top seven cities in India
500,000
Ambuja Cements 62.3 476,520

JK Cement 47.2
400,000

ACC 45.1
318,400
300,000
UltraTech Cement 27.6

BSE Sensex 24.8

200,000

Ramco Cements 10.6

Dalmia Bharat 0.5 100,000

Shree Cements -0.1

Graphic shows top seven companies by market capitalization, arranged in 0

descending order of one-year returns as of 11 April 2024.
2013 2023
Source: Yahoo Finance Source: Anarock Research

Infrastructure Boost Infrastructure has gained share in

cement consumption
CEMENT DEMAND arises from three segments: housing, Sector share in cement consumption (%)
infrastructure, and industrial and commercial. While housing is Housing Infrastructure Industrial & commercial
still the largest consumer of cement, the share of infrastructure 2011-12
has risen from 20% in 2012 to 28% in 2023, as the government 20
rolled out infrastructure projects, such as roads, and ports. 20
In a report published last month, stock broking company
Prabhudas Lilladher estimated the 13 high-speed rail projects
planned will generate demand for 80 million tonnes (mt) of 60
cement; the sector’s annual capacity in 2022-23 was 583mt.
2022-23
Also, it estimates that ongoing metro rail projects, which 14
cover about 630 km, will need 24mt of cement. Some of these
projects—such as Bharatmala Pariyojana, that needs building of 28
26,000km of economic corridors, 8,000km of inter-corridors,
and 7,500km of feeder routes—could have second-order gains,
spurring cement demand. Cement companies are banking on 58
these projects to pick up speed post the national election. Source: Prabhudas Lilladher

Cement capacity is set to grow faster

than consumption
Capacity Build-up
Cement capacity (mtpa) THE CEMENT industry could build capacity faster in the
Cement consumption (mtpa) coming years compared with the past. Total capacity could
800 741 increase by 123mt per annum between 2023-24 and 2026-27,
700 compared with an increase of 98 mtpa between 2020-21 and
2023-24, according to Prabhudas Lilladher.
600
520 However, this growth in supply might not be immediately
500 followed by growth in demand, leaving unused capacity. The
400 excess of supply over demand is projected to increase to 221
mtpa by 2026-27, compared with 191mtpa in 2022-23 and 75
300
mtpa in 2011-12.
200 Managing capacity utilization will be key for cement players
100 in the coming years. Larger players are better positioned to
0
leverage utilization rates, giving them an advantage in a
2011-12 2026-27 fragmented industry. According to a projection by Crisil, 50-
Data for 2023-24 onwards are projections. 55% of all the capacity additions expected to be commissioned
Source: Prabhudas LIlladher
in 2024-25 will be by large players.

Scale Advantage Cement profitability has dropped in

the past two years
THE AVERAGE quarterly Ebitda per tonne (operating Ebitda per cement tonne ()
revenues minus operating cost) of cement has risen from ₹600 1200 1,193
in 2022-23 to ₹765 in 2023-24. This is still lower than ₹926 in
2021-22, according to IDBI Capital, placing small players at a 1000
disadvantage relative to large peers. “Skyrocketing energy costs 800
over the last two fiscals hurt profitability and balance sheets of 816
players. This led to consolidation in the sector...to compete 600
amid high costs,” Crisil said in a recent report.
400
As per Crisil, the capacity share of large players has risen from
45% in 2017-18 to 48% in 2022-23, partly due to mergers and 200
acquisitions. Consolidation is expected to continue, as
producers seek more pricing power. Companies reportedly 0
Q1FY22 Q4FY24
hiked the price of a 50-kg cement bag by ₹10-15 earlier this Ebitda: earnings before interest, tax, depreciation, and amortization
month, and further hikes are likely after the elections. (essentially, earnings from operations). Data for top 14 cement
www.howindialives.com is a database and search engine for manufacturers by capacity. Q4 2023-24 based on January and
February figures. Source: IDBI Capital
public data.
PARAS JAIN/MINT

PEANUTS by Charles M. Schulz

 NEW DElHI, MUMBAI, BENGALURU, kOLkATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE*, LUCkNOw* VOL. 18 NO. 91 Rs. 10.00 . Price with Hindustan Times Rs. 15.50 18 PAGES

Monday, April 15, 2024

What gold’s record run is India can survive brief oil shock:
livemint.com telling investors uP10 ICICI Pru MF’s Tawakley uP4

SENSEX 74,244.88 0.00 NIFTY 22,519.4 0.00 DOLLAR ₹83.42 ₹0.00 EURO ₹88.93 ₹0.00 OIL $90.97 $0.41 POUND ₹104.26 ₹0.00

World weighs risks Online gaming, payment apps

most advertised brands in IPL
DON’T MISS
AFP

of Israeli retaliation Varuni Khosla

[email protected]
NEw DELHI
Bitcoin prices volatile; crude oil to spike; stocks may see losses
T
he Indian Premier
League (IPL) is an intense Govt may issue green bonds
Bloomberg battleground, not just for worth ₹20-25,000 cr in FY25
[email protected] DaNGER MaRKs cricketers, but also for advertis-
ers and brands. The intensity
The Centre may borrow a total of ₹20,000-
25,000 crore through sovereign green

F
inancial markets will face rose multi-fold in the first 23 bonds in FY25, capitalizing on the rising
the new week fretting about matches of the current season, interest in Indian bonds after JP Morgan and
geopolitics with much rid- with 37 new categories and 86 Bloomberg decided to include some Indian
ing on whether Iran’s new brands joining the fray on government bonds in key indices. >P2
unprecedented weekend television.
strike on Israel triggers rounds of Yet, consumers don’t recall
retaliation. most brands beyond the top Road ministry to raise ₹60K cr
With investors already rattled by 3-4 being advertised, ad rates Dream11 is the most popular advertiser, said experts, while other from assets in FY25; TOT in focus
sticky inflation and the prospect of are sluggish, and companies top brands are Asian Paints, Havells, Rupay and few more. AFP The Union ministry of road transport and
higher-for-longer interest rates, the haven’t entirely loosened their highways is looking to raise a record
escalation of the Middle East crisis is purse strings, according to vari- Research, Parle’s biscuits and been significant shifts in adver- ₹60,000 crore from monetization in the
set to inject fresh volatility when ous reports on marquee cricket Airtel’s Xstream Fiber are tising trends of categories on current fiscal (FY25). The marque toll-
trading resumes. league, now in the 17th among the top new brands this linear television and the factors operate-transfer (TOT) highways will form a
When Hamas attacked Israel in season. The story is no different year are, but it is the gaming influencing advertisers to large portion of the exercise. >P2
October, the biggest fear for many on digital. and wallet companies that have showcase themselves in the IPL
market participants was that Iran Anti-Iranian protest outside Iran’s embassy in London. AFP Even as various trends play grabbed the most eyeballs. include the recency of launch
would ultimately be drawn into the out, the return of gaming as the Data from TAM indicates of a new product or variant, How Bansal’s in-house tech drive
fighting. Now as the conflict widens, NEW TRIGGER biggest advertising category is that about 55 product catego- among others. The tournament could power Navi’s big ambitions
many say oil could surpass $100 a EsCalaTION of this as conflict widens, IRaN launched the big takeaway so far. Food ries have emerged this season, also helps brands get instanta- Sachin Bansal’s latest big bet that could
barrel and expect a flight to Treasur- crisis is set to inject many say oil could armed drones and and beverage companies have growing 65% over last year’s neous reach and omni-pres- propel his fintech startup Navi Technologies
ies, gold and the dollar, along with fresh volatility in mkt surpass $100 a barrel missiles against Israel joined the battle this year and, number up till 23 matches. In ence across an entire season of Ltd bears some heavy-hitting buzzwords—
further stock-market losses. interestingly, pan masala total, 60 companies have high sales period. large language model, generative AI—but
“Oil prices might spike at the advertising, though still advertised in the season so far, “Delving deeper into the this second-time entrepreneur has opted
opening, as this is the first time Iran Iran launched armed drones and landing, Israeli military spokesman present, hasn’t reached its peak over last year’s 45. advertising categories, we saw for the tougher path. >P3
struck Israel from its territory,” said missiles against Israel, marking a Daniel Hagari said early Sunday. He of last season. Pan masala hasn’t hit the initially that gaming, which had
Giovanni Staunovo, an analyst at new and more volatile phase of the said the only impacts were a 10-year- Dream11 is the most popular peak of last year yet, but it still reached its peak during the
UBS Group AG. “How long any Middle East conflict. The attack, in old girl who was badly injured and advertiser, said experts, while pipped the smartphone cate- 15th season, experienced a PVR Inox scripts a new show
bounce will last will also depend on retaliation for a strike in Syria that other top brands are Asian gory to fourth spot. Gaming notable decline in season 16. with revamped biz strategy
the Israeli response.” killed top Iranian military officers, TURN TO PAGE 6 Paints, Vimal, Thums Up companies and food product But the current season exhibits
One year after the merger of India’s top two
Bitcoin gave an early insight into was the first time Iran has struck Charged, Havells, Joy Cosmet- companies are the first and sec- a promising resurgence, show- multiplex players, PVR Inox Ltd is embarking
market sentiment: The token sank Israel from its soil. Aviation, shipping sectors ics, Dettol, Harpic, Vanessa, ond categories this season on casing growth compared to the on a strategic shift towards enhancing greater
almost 9% in the wake of the attacks Most of the more than 200 ballis- brace for disruption > P5 Amul, Groww, Rupay and television, added TAM. preceding season. Conversely, operational flexibility, and reining in expenses
on Saturday, only to rebound on tic missiles, cruise missiles and attack Indian stocks may suffer little HDFC PayZapp. L.V. Krishnan, CEO of TAM pan masala surrogate ads and debt. Ajay Bijli, MD of PVR Inox, outlined
Sunday and trade near the $64,000 drones fired by Iran were intercepted unless crude oil spikes >P5 According to data from TAM Media Research, said that over its roadmap for the next 12-18 months. >P7
mark. with the help of Israel’s allies before Sports, a unit of TAM Media the seasons of IPL, there have TURN TO PAGE 6

Vedanta to raise up to ₹4,000 cr TCS headcount drops as it

from PFC for power business leaves many roles unfilled
Anirudh Laskar sector lender and typically Jas Bardia, Varun Sood
Number crunching
[email protected] extends financing to compa- & Devina Sengupta
India's largest IT Services company has reduced its headcount
MUMBAI nies that own promising power
following almost two decades of a hiring spree
projects and manufacture pow- MUMBAI/BENGALURU
Headcount (right-hand scale) Net Additions/Reductions

V
edanta Ltd is set to raise er-sector equipment.
1,20,000 7,00,000

T
₹3,900-4,000 crore Vedanta has regularly raised ata Consultancy Services
from Power Finance capital from international is not filling up many of 1,00,000 6,00,000

Corp. Ltd to boost its power banks (two of its largest lenders the roles that are becom- 80,000 5,00,000
Steel is a key area of acquisition for Ofbusiness, as the sector generation capacity, signalling are Barclays and JPMorgan) or ing vacant when people leave 60,000 4,00,000
accounts for about 32% of the company’s revenue. AP the group may be winning by selling equity in group firms. the firm, contributing to the 40,000 3,00,000
back the trust of large domestic Due to concerns over its ability company ending FY24 with

Volatile world
20,000 2,00,000
lenders. to repay parent-level (Vedanta fewer employees than it had at
0 1,00,000
The Anil Agarwal-led com- Vedanta’s borrowings rose by Resources) debts over the past the beginning.
pany has secured a rupee term 22% year-on-year at the end of year, its credit ratings on long- Traditionally, a fall in head- -20,000 0
FY13 FY24

gives a tailwind
loan facility from the state-run December 2023. BLOOMBERG term loans have been revised, count has been associated with Source: Mint research basis the company's financials
lender for at least ₹3,918 crore, and it has been struggling to lower earnings for IT compa-
SARVESH KUMAR SHARMA/MINT
which can go up to ₹4,000 two power plants in Chhattis- raise fresh capital. nies, and vice-versa. However,
crore, two people aware of the garh and Andhra Pradesh. Vedanta group’s borrowings TCS brushed aside concerns 614,795 in the year ended panies have to do after the

for Ofbusiness development said. The 11-year

loan is part of the group’s
renewed focus on growing its
The London-headquartered
mining and energy group plans
to increase the operating
rose by 22% year-on-year to
₹75,227 crore at the end of
December 2023. Last week, it
saying the dip was nothing unu-
sual, especially after an earlier
hiring spree. Some industry
March 2023, a fall of 13,249
heads. This is a first for the
company since it went public in
record hiring we did in the last
few years,” the executive said.
The executive is referring to
Priyamvada C fited from the China-plus-one energy portfolio in India, amid capacity of its power business said it would raise ₹2,500 crore participants, though, are of the 2004. the spurt in hiring by the TCS
[email protected] strategy, a push for global busi- competition from large domes- in India to 4.8GW by FY27, by issuing non-convertible view that this may be a sign of A TCS executive, speaking on in FY22, which saw a net addi-
BENGALURU nesses to diversify their supply tic rivals. from the existing 2.58 GW. debentures (NCDs) through things to come, with AI increas- condition of anonymity after it tion of 103,546 employees that
chains and assembly lines, the “This financial closure will Towards this, Vedanta has private placements. The com- ingly replacing employees in declared its earnings last week, fiscal. Another 22,600 people

O
fbusiness is not your company has in recent times enable Vedanta to expedite the acquired two plants—Meenak- pany’s cash and cash equiva- big IT services firms. said the company would con- were added in FY23.
typical e-commerce found another factor playing in completion of its power pro- shi Energy Ltd in Andhra Pra- lents in the third quarter was Mumbai-based TCS, India’s tinue to hire people and it would In FY24, headcount declined
company. For one, it’s its favour: Uncertain global jects,” one of the two people desh with a capacity of 1GW, down to ₹12,734 crore from biggest IT services company be wrong to infer a structural over three consecutive quar-
profitable. In fact, it’s been macroeconomic conditions cited above said, adding that and Athena Power in Chhattis- ₹23,474 crore in a year ago. and largest private-sector change in its business model. ters through March 2024, but
profitable for seven out of its and geopolitical tensions, Vedanta will use the funds pri- garh with a capacity of 1.2GW. employer, ended FY24 with “Please understand that there is
eight years of existence—a rare which have encouraged busi- marily to expand capacity at its PFC is India’s largest power- TURN TO PAGE 6 601,546 employees, against always some recalibration com- TURN TO PAGE 6
feat for Indian startups, many of nesses to prioritize India as a
which have been struggling to sourcing destination.
cope with a funding freeze and “In the last 3-4 years, this is
moderating growth in the past
few years.
The online raw materials
the largest significant tailwind
that has come about,” said
Asish Mohapatra, co-founder
Your next dental implant could be made of fabric
marketplace for businesses, on and chief executive officer of
the other hand, expects its Ofbusiness. Dhirendra Kumar tooth structure, with All India presented on 1 February. in the tooth implant segment.
FY24 profit to jump by 50% The company now plans to [email protected] Institute of Medical Sciences The key objective behind the “The government should expe-
from a year earlier, a period tap the public markets in 12-15 NEw DELHI (AIIMS) and Indian Institutes of plan is to make tooth implants a dite the process, and once the
fraught with global economic months, after hitting ₹1,000 Technology (IITs) to conduct cost-effective process, the sec- patent is filed, they should send

T
uncertainties and geopolitical crore in after-tax profit, a target he Union textiles minis- research to develop the tech- ond person cited above said, a copy of it to the dental coun-
tensions. For Ofbusiness, Mohapatra expects to reach in try is working on your nology, the two people said, adding the research for devel- cil. This initiative has signifi-
though, this has turned out to the ongoing financial year. smile. In an attempt to adding that the process will go oping medical textiles will cant market potential,”
be a blessing, enough for it to Before listing, Ofbusiness make dental implants less through different levels of test- require a significant budget Mazumdar said.
relaunch its process for an ini- also has to ensure that the com- expensive, the ministry is plan- ing, including clinical trials on allocation. The technology will However, Dr Amit Kumar
tial public offering of its shares. panies it has acquired also com- ning to develop a fabric-based humans. be shared with private players Sharma, head of the dental
The company had planned ply with the same level of gov- tooth to replace expensive “The process is at the prepa- for manufacturing to make it department at NIMS Dental
to go public last year, but ernance norms as the parent implants made from ceramics, ration stage and consultation economically viable, the per- College and Hospital in Jaipur,
deferred its IPO citing unstable company, Mohapatra said. polymers, and composites, with stakeholders is planned to son added. felt that a tooth implant entirely
market conditions. Later in the “We are very much in the according to two people aware lay out the strategy. The project The development of fabric-based teeth is part of the ministry’s Queries sent to spokesper- based on fabric is not feasible.
year, Ofbusiness approached process of it... we will appoint of the development. is very costly and will take at National Technical Textiles Mission. MINT sons of the ministries of Tex- The fabric needs to be com-
sovereign wealth funds, private bankers in about 3-6 months,” Currently, most of the com- least five years to develop a pro- tiles, Health & Family Welfare bined with metal for better
equity funds, and crossover Mohapatra said, adding that ponents for tooth implants are totype,” the first person said. teeth, too, are used in many tiles Mission, and it comes and Education remained unan- strength and longevity.
funds to raise $150-200 million the company will likely file its imported from a select list of Worldwide, alternative den- developing economies such as under the medical textiles cate- swered at press time. The dental implants market
at a valuation of $6 billion, as draft red herring prospectus countries, including Israel and tal implant materials include Germany and the US, among gory. The government has Former president of Dental is growing due to increasing
Mint reported in November. (DRHP) by the end of this year. China, among others. titanium and its alloys, gold others. increased allocation for the Council of India Dr. Dibyendu demand for cosmetic den-
Ofbusiness denied the devel- He did not disclose more details The ministry’s plan involves alloys, stainless steel, and alloys The development of fabric- National Technical Textile Mazumdar has hailed the tistry—apart from incidents of
opment. using dental resins made from of cobalt-chromium and nick- based teeth is part of the minis- Mission to ₹375 crore from move, stating that the project tooth loss—and advancements
While Ofbusiness has bene- TURN TO PAGE 6 polyester to restore and replace el-chromium. Fabric-based try’s National Technical Tex- ₹170 core in the interim budget aims to make India self-reliant in dental implant technology.
02 MoNDAy, 15 ApRil 2024
New Delhi ECONOMY & POLICY LIVEMINT.COM

STRAIGHT
F O R WA R D
Govt may issue green bonds Cong in seat
pact fields
SHASHI SHEKHAR

Respond to this column at

[email protected]
for up to ₹25,000 cr in FY25 fewest-ever
candidates
HAS ECI TAKEN THE The Centre had already decided to borrow ₹12,000 crore through green bonds in the HIFY25
Saubhadra Chatterji
[email protected]
NEW DELHI

COLOUR OFF INDIA’S

T
he Congress party is set
Rhik Kundu through this route will be easily util- to field the fewest Lok
Towards sustainability
POLL CAMPAIGNS? [email protected]
NEW DELHI The green bond plan is likely to be announced in the full-year budget to
be presented in July.
ized.
Experts said that while sovereign
green bonds had minimal greenium
Sabha candidates since
Independence in the 2024
national elections, the result of

I
ndia may boost the sale of green SGrB AUCTIONS DURING H1FY25 (the premium investors are willing to its seat pacts with allies of the

A
t the end of the last month, I got the opportunity to revisit bonds this fiscal year to finance sus- pay for environmentally friendly INDIA bloc — the largest such
Auction weeks
Türkiye—an election campaign adding colour to the tainable infrastructure projects, investments) over other government pre-poll alliance for the party
affectionate environment there. Be it at the Taksim two people aware of the plans said, 27-31 Amount
bonds, greenium from these bonds is at a time when its tally has
Square or Princess Island, the ablution fountain of Hagia Sophia, riding the increased global interest
May
₹6,000
crore anticipated to be higher this year dipped dramatically over the
or the modernity of a mall, people were talking about the elec- in Indian government securities. 29 July - Allocation: 10 year SGrB (FY25) due to increased interest from past two general elections.
tion. The streets were lined with candidates’ banners and glowing The government, which has already 2 August foreign portfolio investors, and the The Congress has so far
signboards. Speeches were being delivered at street corner meet- decided to borrow ₹12,000 crore via strategic timing of issuance of such announced 268 candidates
ings, and election enthusiasm was prevalent across the media. green bonds in the first half of FY25, ₹7,50,000
crore
TOTAL government borrowing from
bonds. from 26 states and seven
This was a mayoral election. What if it were the general elections? may borrow a total of ₹20,000-25,000 SGrB: Sovereign dated securities during H1FY25 “Large traders, including foreign Union territories, and is yet to
Green Bonds
We in India are currently headed for the general elections, but crore through such bonds during the banks, Indian commercial banks, and announce candidates from
there is no visible excitement in the atmosphere. Is this dullness full year, the people said on the condi- primary dealers are expected to show a Haryana, Punjab and Delhi.
the result of actions taken by the Election Commission of India tion of anonymity. The green bond keen interest in accumulating green The party will announce a few
(ECI) to prevent buying of votes? Can it contain money power? plan, part of the government’s overall bonds to meet the growing demand more seats in Bihar, Andhra
*Note: Only H1FY25 borrowing plans through dated securities have been announced so far
Before answering these questions, let me take you to the 1960s, borrowing programme, is likely to be Source: Calendar for issuance of dated government securities, RBI
from FPIs and the anticipated repo rate Pradesh, Himachal Pradesh,
to a time when Ram Manohar Lohia chose a new path to over- announced in the full-year budget to be cut by the central bank during the three in UP—including Rae-
come the ruling party’s financial power. He came up with the presented in July. ongoing fiscal (FY25),” said Venkata- Bareli and Amethi—and a cou-
“One note; one vote” campaign to raise funds to contest elections. In FY24, the government had issued demand for sustainable bonds in the tors’ (FPIs) assets under custody krishnan Srinivasan, managing partner ple of seats in West Bengal.
Under the campaign, workers of his party would collect ₹1 each sovereign green bonds of ₹20,000 market,” one of the two people said on swelled by ₹77,379 crore, Mint at Rockfort Fincap Llp, a financial advi- These are expected to add
from persons attending the party’s public gatherings. Similar crore, even though the budget did not condition of anonymity. reported on 8 March. sory firm. roughly another 20 seats.
campaigns have been run by leaders such as Kanshi Ram and Arv- specifically mention the plan. Of this, On 5 March, Bloomberg Index Servi- “There is an expectation of attracting “Given the potential for heightened The Congress contested 421
ind Kejriwal. bonds of ₹5,000 crore with a ces said it would include 34 more foreign investments due FPI interest, it’s speculated that seats in 2019, 464 in 2014, 440
It is an irony, though, that Kanshi Ram’s successor, Mayawati, tenure of five years were sold Indian government bonds in to India’s inclusion in these the government may in 2009, and 417 in 2004 out of
faced allegations of corruption after coming to power. And Kejri- in November 2023, and its Emerging Market Local indexes, which makes us increase green bond issu- the 543 up for grabs in the gen-
wal is currently behind bars facing allegations in the liquor policy
scam. Money and the rich have begun to exert direct influence
₹10,000 crore worth of
bonds with a tenure of 30 ₹20
K cr
Worth of sovereign
Currency Index from 31 confident that green
January next year. Ear- bonds will find more K cr
Worth of SGrBs of
₹5
ances in the second half of
the fiscal year to accom-
eral elections. It won 52 seats
in 2019, 44 in 2014, 206 in
on our democracy. years in two tranches of lier in September 2023, interest,” the first person modate this demand,” 2009 and 145 in 2004.
This is why money and muscle power gained influence in poli- ₹5,000 crore each in Jan- green bonds issued JP Morgan said it will add added. five-year tenure Srinivasan said. “We would not be contest-
tics during the 1970s and 1980s. Political bigwigs across parties uary and February 2024; in FY24 23 Indian government A finance ministry sold in Nov 2023 “Overall, the scenario ing in a large number of seats.
began enjoying the company of criminals. These criminals were bonds worth another bonds to its widely tracked spokesperson didn’t depicts a strategic move by But definitely we will contest
euphemistically named bahubali. ₹5,000 crore were sold in emerging market debt index respond to an emailed query. the Indian government to tap in more than 272 seats,” said a
A number of such bahubalis began to climb the power ladder March. beginning 28 June, 2024. How- Green bonds address the fund- into the growing demand for senior Congress strategist
from Gram Panchayats, to the Lok Sabha and Rajya Sabha. Data “In all likelihood, the borrowings ever, bond investors appear to have ing requirements for renewable energy environmentally sustainable invest- about its low numbers this
analyzed by the Association for Democratic Reforms (ADR) made through green bond instruments flocked to them even before the deci- projects. With several financially viable ments, capitalizing on increased FPI time, referring to the mini-
showed that about 29% of members of the 17th Lok Sabha were during the ongoing fiscal (FY25) will be sion took effect. Between September projects in the public sector in the pipe- interest and favourable market condi- mum required for a majority in
charged with very serious offences, while 18% of Rajya Sabha higher than last year, as there is a and February, foreign portfolio inves- line, policymakers feel the funds raised tions,” he added. the Lok Sabha.
members faced such charges. Another analysis by ADR in June
2023 showed that in the legislatures of
Money and 28 states and two Union territories,
muscle power
gained traction nalPoliticians
almost 28% of legislators had a crimi-
past.
have also grown wealth-
K’taka, UP, among Centre eyes ₹60k cr from road assets
in politics
during the
ier. The ADR analysis showed that 12%
of Rajya Sabha members currently
1970s and 1980s have assets worth more than ₹100
leading importers Subhash Narayan
[email protected]
revive the “Build, Operate,
Transfer” (BOT) model of
crore, whereas about 48% Lok Sabha NEW DELHI highway development by issu-
members elected five years ago had Gireesh Chandra Prasad and Diu and islands Andaman ing tenders for 53 projects of

T
assets worth more than ₹5 crore. Notably, our country’s per cap- [email protected] and Nicobar and Lakshadweep he Union ministry of 5,200km worth ₹2 trillion in
ita daily income remains stuck at ₹464. NEW DELHI account for the lowest tax col- road transport and high- the coming months.
The connotation is clear: The common Indian has now been lections on account of imports, ways (MoRTH) is look- This will allow NHAI to

M
limited to being a voter. For many of them, the temptation of aharashtra, Uttar Pra- showing their weakness in con- ing to raise a record ₹60,000 secure funds for highways
money, combined with caste, religion, region, and sect, serves as desh, Karnataka and sumption. In the GST regime, it crore from monetization in the directly from the private sec-
a lifeline. It is hardly surprising that the amount of money and Tamil Nadu are lead- is the importing state that gets current fiscal (FY25), two peo- tor.
liquor seized by the election commission has increased dramati- ing in consumption of the tax proceeds on inter-state ple aware of the matter said. There is also a plan to draw
cally over the last decade. ECI seized ₹190 crore in the 2009 gen- imported goods and, thus, in trade, giving consuming states While the marque toll-oper- larger participation of global
eral elections; in 2019, it seized more than ₹841 crore, a record garnering the highest tax reve- an edge, unlike in the earlier ate-transfer (TOT) highways investors in the country’s
high. Similarly, in 2019, 18.6 million litres of liquor were seized, nue from integrated GST or regime in which proceeds of will form a large portion of the infrastructure development
compared with 16 million litres in 2014. IGST levied on imports and central sales tax (CST) on inter- exercise, a third of this money programme by auctioning
In our country, where one election or the other is held every inter-state trade, showed offi- state sales went to the export- is likely to come from the completed road and highway
few months, politicians and parties are pushed to spend money cial data for FY24 upto Febru- ing state. In the case of imports NHAI InvIT, and private Toll-operate-transfer highways will cover much of the exercise. bundles directly to private sec-
in a variety of ways. A top leader told me that during elections, a ary, indicating the from outside the InvITs that may be directly Pivate InvITs may also be directly offered road projects. MINT tor InvITs.
candidate needs at least two vehicles and a corresponding num- consumption The top five country too, IGST offered road projects for the This will be first time that
ber of personnel to campaign in one block. In a Lok Sabha elec- power of these states accounted proceeds go to the first time this year, one of the ing at adding another over needed this fiscal to achieve completed and revenue-gen-
tion, at least 50 cars must be deployed directly and indirectly. major state econ- for a third of all state where con- two persons quoted above ₹60,000 in FY25 to achieve its the target,” said a former offi- erating highways under the
Besides, each block has an office where workers rest and food has omies. IGST collections sumption hap- said. target. cial of the National Highways ToT mechanism will be
to be arranged for them. On the night before the polls, lakhs of The top 10 pens. Large state The higher monetization in “While MoRTH may Authority of India (NHAI) on directly and exclusively
in the April-
rupees are spent providing “meals and drinks” to people from vil- importing states economies have a FY25 could maintain the achieve ₹1.6 trillion monetiza- the condition of anonymity. offered to private InvITs, who
lage to village. Lakhs of rupees are spent at one’s own or any other which also February period higher consump- momentum gained in the last tion target, its MoRTH offi- could then mobilize global
major leader’s election meeting. include Gujarat, of FY24 tion base. fiscal when for the first time achievement The higher cials said the investments by offering sub-
Another worthy stated that formerly, the task was done solely Rajasthan, Telan- In the first 11 ₹38,334 crore was mobilized should be viewed monetization in monetization tar- scription of InvIT units.
through booklets, banners and posters. Posters and banners have gana, Madhya months of FY24, from ToT, InvIT, and project- from FY22 when FY25 could keep get would be So far, the government has
been banned now, but people must be deployed to remain active Pradesh, West Bengal and ₹4.97 trillion of IGST was set- based financing. This was a the national the momentum achieved, as been offering road projects by
on social media for the entire five-year period, not only to glorify Bihar account for half of the tled among states, with Maha- growth of over 64% over the monetization
going from FY24 NHAI has a large
nomination only to state-
their leader but also to keep attacking rivals. In light of this, an IGST proceeds collected by all rashtra collecting ₹44,126 FY23 figure of ₹23,336 crore. pipeline was cre- bank of com- owned NHAI’s InvIT, the
election expenditure cap is ineffective. Politics is an expensive states on imports and inter- crore, followed by Uttar Pra- Under the national moneti- ated and targets when ₹38,334 cr pleted projects National Highways Infra Trust
business. state trade in the first 11 months desh (₹41,381 crore), Karnataka zation pipeline, road and high- were set for the was mobilized that could be (NHIT), while monetization of
This raises a couple of questions: Why would big traders or of FY24, showed data from (₹31,922 crore) and Tamil Nadu ways have been given the next four years up offered to the pri- assets in other cases is being
business houses that make election donations not expect any GSTN, the company that pro- (₹22,340 crore). Gujarat col- highest target of monetizing to FY25 for all vate sector for done by offering ToT projects
profit in return? What causes the world’s largest democracy to cesses GST returns. lected ₹20,298 crore. The top core assets worth ₹1.6 trillion infra-focused ministries. Since operation and maintenance. to private highway developers.
seem frightened when confronted with this issue? North-eastern states Mani- five states accounted for a third by FY25. MoRTH had already FY22, the monetization of Also, after years of viability Questions sent to the
Shashi Shekhar is editor-in-chief, Hindustan. Views are per- pur, Nagaland, Mizoram, and of all IGST collections in the monetized assets worth ₹1.08 MoRTH is worth ₹84,000 concerns of private highway MoRTH remained unan-
sonal. Sikkim, Union territory Daman April-February period of FY24. trillion since FY19 and is look- crore. So, more would be projects, NHAI proposes to swered till press time.

After modules, govt now plans non-tariff barrier for solar cell imports CORRECTIONS AND
CLARIFICATIONS
Mint welcomes comments,
Rituraj Baruah Talks on the matter are at an along with modules voluntar- years. Bureau of Indian Standards suggestions or complaints
[email protected] initial stage, with the govern- ily, the two tranches of the pro- ALMM was kept in abeyance (BIS) and the ministry of new about errors.
NEW DELHI ment likely to firm up a road duction linked incentive (PLI) for the recently ended FY24 in and renewable energy.
Readers can alert the
map that would look at ramp- scheme would also add to the view of low supplies of modules If cells are brought under the
newsroom to any errors in the

A
fter reimposing the ing up domestic production to capacities,” the second person and its potential impact on ambit of ALMM, they would paper by emailing us, with your
‘approved list of models meet local demand. This would said, adding that integrated solar capacity addition. So far, also be subject to scrutiny for full name and address to
and manufacturers be done by introducing quality capacities, including both cells only Indian-made modules and their use in modules meant for [email protected].
(ALMM)’ for solar modules control norms through non- and modules under the first companies manufacturing in government-backed projects.
starting 1 April, the Centre is tariff barriers, such as bringing tranche of the PLI are likely to India feature in the list that Although India has some- It is our policy to promptly
respond to all complaints.
now considering a similar in cells under the ambit of come up by November this introduced as a non-tariff bar- what developed its module Readers dissatisfied with the
norm for cells used for making ALMM. year. rier in 2021, aimed at promot- manufacturing capacity and response or concerned about
modules to curb Chinese “There is a consideration for The move is in line with steps ing domestic module manufac- currently has about 37 GW Mint’s journalistic integrity may
imports and promote Indian- bringing in cells under ALMM Solar cells may be brought under the ambit of ALMM. BLOOMBERG to lower the reliance on Chi- turing. module capacity listed in write directly to the editor by
made cells, said two people going ahead. However, the nese supplies and develop the Goods made by firms on the ALMM, the country has only sending an email to
aware of the development. move needs to be planned on tive will not be fulfilled,” said take time to work out modali- indigenous solar supply chain. ALMM list can be sourced for about 6 GW local capacity for [email protected]
ALMM is a list featuring the the basis of availability of cells. one of the two people men- ties to bring cells under ALMM High import duty on modules government-backed schemes cells. Mint’s journalistic Code of
names of the models and man- A road map will have to be tioned above. norms and would wait for the and cells, the ALMM, and PLI and projects where electricity Queries sent to the Union Conduct that governs our
ufacturers of solar modules given to the industry. If there is The other person added that capacity to be added. schemes for the solar module discoms procure electricity. ministry of new and renewable newsroom is available at
which are allowed to supply to no adequate domestic capacity given the talks are at an initial “Apart from companies tak- ecosystem are all steps taken in Manufacturers and solar mod- energy remained unanswered www.livemint.com
government-backed projects. to meet the demand, the objec- stage, the government would ing up manufacturing of cells this direction over the past few ules are approved by the till press time.

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LIVEMINT.COM DEALS, TECH & STARTUPS MoNDAy, 15 April 2024
New Delhi 03

m THE MONDAY QUIZ

1) IN which three cities 2) wHIcH IT services
How Bansal’s in-house tech drive
could power Navi’s big ambitions
will CtrlS Datacenters be major declared its Q4
launching Google Cloud results on Friday, posting
Interconnect Services? a 9% y-o-y rise in profit?

3) wHat is the name of the new AI chip launched by

Intel to compete with rival chipmaker Nvidia?

4) wHo succeeds 5) wHIcH firm did the

Wipro’s newly-appointed tech startup Postman Initiatives include LLM apps, chatbots, lending system, an app platform to launch products and services swiftly
chief executive Srini Pallia acquire last week for an
to head Americas 1? undisclosed amount?
Leslie D'Monte "Banks are also not the most cus- ing it further on a domain-specific
[email protected] tomer-friendly institutions, and they dataset.
NeW DelHI have high cost of transactions," said Navi, for instance, uses LLMs for
GLOSSARY Bansal, insisting that Navi can reduce customer chatbots, "where they nat-

S
achin Bansal’s latest big bet costs using technology, "opening up urally lend themselves". It is also
that could propel his fintech completely new ways of doing things". fine-tuning LLMs for use in collec-
Inferencing: Inferencing Superposition: Quan- startup Navi Technologies Building key components of the tions. "When it comes to customer
in AI is the technique of tum superposition or Ltd bears some heavy-hit- technology in-house is helping Navi follow-ups, the first point of contact
applying a machine learn- simply superposition is a ting buzzwords—large lan- speed up the feedback loop, Bansal when paying EMIs (equated monthly
ing model to previously concept in quantum guage model, generative artificial said. It's an "iterative approach" and instalments) is the LLM chatbot. A
unseen data for making mechanics according to intelligence—but this second-time "we have introduced a human steps in only if the
predictions. It is where which a quantum com- entrepreneur has opted for the consumer-internet way of BuIlDINg chatbot fails in the task.
the model applies the ponent can exist in mul- tougher path. building products in NavI This has driven huge effi-
knowledge it has acquired tiple states at the same Bansal, who previously co-founded finance for the first time", ciencies in the system,
during the training phase time. Since classical bits e-commerce giant Flipkart and was he said. after Bansal exited and resulted in enhanced
to solve real-world prob- can be in one of the two the original poster boy of India’s For instance, Navi has Flipkart in May 2018,
he pocketed a little
customer experience
lems. The accuracy of the possible states (0 or 1), startup ecosystem, is building most of built an in-house commu- over $1 billion from too," Bansal said.
inference results is indica- computers can perform the technology stack for Navi nication and marketing the sale of his shares According to him, cus-
tive of training data and only one computation at in-house. These include LLM apps, platform, a co-lending and tomers like the fact that the
model design efficiency. a time. Superposition lets chatbots, a lending management sys- direct assignment plat- over the last five bot can communicate in
years, he funnelled
quantum computers per- tem, and an app platform to speedily form called Navi Lending a major portion of Indian languages, includ-
form multiple computa- launch new products and services. Cloud, and is building its that wealth into ing Hindi, Tamil, Bhojpuri
tions parallelly by pro- While this can be challenging and own data platform, too. building Navi and Marathi.
cessing all possible states "slightly slows down" the development "Whatever we do needs to Navi also uses LLMs for
of the quantum compo- of new technology, "the flexibility we Navi Technologies executive chairman and CEO Sachin Bansal. be scalable—for a few mil- data annotation "to
nent at once. get is unmatched", Bansal said in an lions and not for a few thousands," extract patterns from text and images
interview with Mint. sal plans to take public shortly (he had The executive chairman and CEO of Bansal explained. too". Data annotation is the process
Data blind spots: Areas After Bansal exited Flipkart in May dropped plans for an IPO two years Navi started the company with an Navi also leverages GenAI tools but of tagging or labelling data to help
or ‘spots’ of data that are 2018 following Walmart Inc.’s acquisi- ago). ambitious goal—“to make finance has opted for "fine-tuning the best- machine learning algorithms under-
Blanking panels: In the missing or not well under- tion of the company, he pocketed a lit- Of Navi’s 2,000-odd employees, accessible to the masses and small available LLMs to solve customer stand and classify the information
context of data centres, stood are referred to as tle over $1 billion from the sale of his about 500 are part of the company’s businesses”. And he believes that problems" and not reinvent the wheel, they process.
blanking panels are used data blind spots. These shares. Over the last five years, the technology team, which comprises while financial services such as lend- Bansal explained. The next step, said Bansal, is "to
for temperature manage- spots are often missed by computer engineer from the Indian more than 350 engineers and about 70 ing, insurance, mutual funds, and Fine-tuning an LLM involves using drive sales through the bot", and "the
ment of servers. It is a monitoring tools leading Institute of Technology-Delhi has fun- data scientists. "We hire the best com- banking have improved in the country a pre-trained model (such as GPT-4, vision is to help anyone take a loan
cost-efficient method for to network performance nelled a significant portion of that puter science grads from IITs and pay in recent years, there remains much LLaMA-2, Claude-3, or any proprie- without even using the app—just
improving the airflow and and security compromise. wealth into building Navi, which Ban- them well," said Bansal. scope for enhancing these. tary or open-source LLM) and train- using Whatsapp".
can be installed, unin- These areas often emerge
stalled, or reconfigured as gateways or soft targets
with simple tools. Blank for data breaches, net-
panels improve the aes-
thetics of the server rack.
work disruptions, and
ransomware attacks. Carlyle taps
Services (TCS) 3) Gaudi 3 4) Malay Joshi 5) Orbit
JPMorgan,
1) Hyderabad, Mumbai, Delhi 2) Tata Consultancy
THE MONDAY QUIZ ANSWERS: Kotak for
Hexaware
public offer
Bloomberg
[email protected]

C
arlyle Group Inc. has
selected JPMorgan
Chase & Co. and Kotak
Mahindra Bank to help
arrange Hexaware Technolo-
gies Ltd’s planned initial pub-
lic offering in Mumbai this
year, according to people
familiar with the matter.
The US investment firm
Miners will need to continually spend more money in a never- plans to hold the initial public
ending, technological arms race for smaller rewards.. REUTERS offering as early as in the
fourth quarter of this year, the

Bitcoin ‘halving’ to people said, asking not to be

identified as the deliberations
are private.

deal a $10-bn blow More bankers will likely be

added for the potential $1 bil-
lion offering, which may value
the Indian information tech-
to crypto miners nology company at as much as
$6 billion, people familiar
with the matter said.
Bloomberg their production takes a big An initial public offering
[email protected] hit,” said Matthew Kimmell, a would help owner Carlyle
digital asset analyst at Coin- pare a part of its holding in

F
or enthusiasts of Bitcoin, Shares. Hexaware, the people said.
a once-every-four-years “With revenues across the Deliberations are at an
software update called board decreasing overnight, early stage and Carlyle may
the “halving” has long been the strategic response of each decide against the share sale,
held as one of the keys to prop- miner, and how they adapt, the people added.
ping up its value. could well determine who At about $1 billion, it would
This time around, it’s also comes out ahead and who gets be the biggest initial public
set to trigger multibillion-dol- left behind.” offering in the country since
lar declines in revenue for the Granted, Bitcoin has Life Insurance Corp. of India’s
very companies that ensure reached new highs after previ- offering in 2022, according to
the digital currency’s smooth ous halvings, helping to miti- data compiled by Bloomberg.
functioning, right on the heels gate the periodic drop in min- Details such as the initial
of a surge in their biggest costs. ing rewards and the increase in public offering size and value
Around 20 April, the halv- the cost of doing business. of the company could still
ing will cut the amount of Bit- The event this month is change, the people said.
coin that “min- coming after the Representatives for Car-
ers” can earn each Around 20 April, digital currency lyle, Kotak and JPMorgan
day for validating halving will cut has more than declined to comment.
transactions to the amount of quadrupled since Carlyle has been exploring
450 from 900 Bitcoin that November 2022. an initial public offering of
now.
“miners” can earn Yet the margin of Hexaware, Bloomberg News
Based on Bit- success for the has reported.
coin’s current each day to 450 industry keeps Hexaware provides IT and
price, it could from 900 now getting finer. business process outsourcing,
spell revenue Miners will need and offers cloud, data and
losses of around to continually artificial intelligence services,
$10 billion a year for the indus- spend more money in a never- according to its website.
try as a whole. Marathon Digi- ending, technological arms Carlyle bought Hexaware
tal Holdings Inc., CleanSpark race for smaller rewards. And Technologies Ltd in 2021
Inc. and other miners, which while the energy-intensive from Baring Private Equity
compete for a fixed Bitcoin validation process has always Asia Ltd, which is now part of
reward by solving mathemati- made mining expensive, com- Sweden’s EQT AB.
cal puzzles using superfast panies now face even more India has turned into a
computers, have invested in competition for power from booming market for deals
new equipment and sought to the burgeoning and deep- including initial public offer-
buy smaller rivals in an pocketed artificial intelligence ings as global investors seek
attempt to cushion the drop- industry. to tap its growth potential.
off in revenue. The soaring price of Bitcoin Automakers, electric-
“This is the final push for has helped offset those power scooter makers and IT com-
miners to squeeze out as much costs and fuelled growth in panies are among those con-
revenue as they can before crypto mining. sidering share sales this year.
04 MoNDAy, 15 April 2024
New Delhi MARK TO MARKET LIVEMINT.COM

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

74244.90 0.00 22519.40 0.03 20745.50 0.15 63067.85 0.59 23254.90 0.06 40909.03 0.19 45872.07 -0.35
1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%)

0.78 2.31 0.82 2.85 2.85 5.06 6.22 15.21 1.81 4.94 4.26 8.01 7.10 3.07
6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%)

11.80 22.94 13.77 26.43 19.09 38.84 39.09 63.55 17.88 31.93 26.56 65.76 20.09 63.50

m MINT SHORTS
Factories around the world
TCS Q4 gives IT investors anguish
slowly cranking into gear again Harsha Jethmalani
Strong point than FY24 aided by better execution of In this backdrop, some analysts have
Assembly lines around the world are starting to hum [email protected] deal wins, it is cautious about near-term cut their earnings expectations for TCS.
again, marking a turn in a years-long manufacturing TCS reported its highest ever quarterly deal total contract value in Q4FY24, demand. Clients continue to re-priori- For instance, Ambit has cut its FY25 rev-

T
slump.The nascent recovery is led by the world’s two big- ata Consultancy Services which included a mega deal tize expenditure on cost take out deals enue growth expectations to 5.4% from
gest economies. Chinese manufacturing has made a Ltd’s (TCS) March quarter BFSI Retail Other Total contract value of deal wins (in $ billion) and projects with immediate return on 7.2%. Also, it’s not like valuations offer
strong start to the year, boosting the economic outlook, results (Q4FY24) do little to investments. Plus, the continuing lag comfort. Lately, widely held expecta-
14
and US factory activity unexpectedly expanded last cheer up IT investors who between deal wins and revenue growth tions of interest rate cuts by the US Fed-
month for the first time since September 2022, buoyed continue to wait for meaning- does not inspire confidence of a mean- eral Reserve gave shares of export-fo-
12
by rising new orders and a jump in production. JPMor- ful signs of demand recovery. Sure, ingful revival. Ambit Capital in a 13 April cused Indian IT services companies a
gan/S&P Global’s manufacturing index notched a second there were some bright spots. Firstly, report cautions against boost. But unless that hope
10
month above expansionary territory in March and sits at deal wins were robust thanks to better extrapolating deal-flow pos- MIXED actually materializes, it is
the highest level since July 2022. If sustained, that’ll help traction across verticals and geograph- itivity. BAG better to keep expectations
8
catalyze a broader and stronger economic recovery that’s ies. The total contract value (TCV) hit a Further, in Q1FY25, mar- lower from IT sector earn-
already spreading beyond the US. “Manufacturing PMIs record high of $13.2 billion in Q4 and gin may see adverse impact THE management ings going into FY25.
are back to expansion in key economies including China, $42.7 billion in FY24. This included a 6
of high onsite costs, travel says deal pipeline
remains strong and it
Dolat Capital Market ana-
the UK and the US,” said Janet Mui, head of market analy- mega deal win of Aviva. The deal pipe- costs and wage hikes. TCS is not seeing any lysts believe TCS and other
4
sis at RBC Brewin Dolphin, referring to purchasing man- line remains strong and it is not seeing has given an average salary issues in ramp-ups tier-I IT companies are
ager indexes. BLOOMBERG any issues in ramp ups, according to the raise of 4.5-7%, with top per- likely to experience a few
management. 2
formers getting a double- BUT the lag between more quarters of subdued
deal win momentum
Secondly, Ebit (earnings before inter- digit hike. Analysts at Jeffer- and revenue growth growth before there is any
0
est and tax) margin expanded 100 basis Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24
ies India have raised TCS’ does not inspire noticeable acceleration in
points sequentially to 26%, ahead of FY25-26 margin estimates confidence growth. TCS trades at a rich
Note: BFSI is banking, financial services and insurance Source: Company data, Jefferies
analysts’ expectations. One basis point is by 40-90 bps to reflect bet- FY25 price-to-earnings
PRANAY BHARDWAJ/MINT
0.01%. The sharp margin expansion was ter than expected Q4 mar- multiple of 25 times, showed
led by subcontracting costs sliding to tivity and pricing are seen as the key clients and bleak demand scenario, but gin and expect margins to be in the Bloomberg. This is highest among tier-1
multi-year lows and a reduced pace of margin levers. Still, and more impor- aided by ramp up of the BSNL deal. The 25-25.4% range over FY25-27. Howe- peers and appears pricey amid the
hiring. Thus, partially offsetting the adv- tantly, the question about the timeline performance of key revenue driving ver, they see limited room for margin ongoing demand weakness. After TCS’
erse impact of higher third-party costs of revenue recovery remains unan- verticals of BFSI, hi-tech and telecom expansion from here on. What’s more, mixed bag performance in Q4FY24, in
and travel expenses during the quarter. swered. TCS reported sequential con- and developed markets of North Amer- subdued hiring and lower sub-contract- the upcoming days, investor focus will
The management has reiterated its stant currency revenue growth of 1.1%, ica and continental Europe were slug- ing costs cuts both ways and while redu- be on FY25 revenue growth guidance by
medium-term Ebit margin target of slightly missing consensus expectations gish in Q4FY24. While the management cing costs it also shows weak demand competitors Infosys Ltd and HCL Tech-
26-28%. Improving utilization, produc- of 1.4%, amid slower decision making by expects growth in FY25 to be better outlook. nologies Ltd.

Mark to Market writers do not have positions in the companies they have discussed here
Some troubled tech companies are trying to restructure
their debt. ISTOCKPHOTO

Technology’s cash crunch

sees creditors turn ‘violent’
Dollar piling on pressure for emerging market currencies
The relentless rise of the Magnificent Seven makes it easy
to forget that many tech firms are unprofitable and strug- Bloomberg inflation data last week damped rates. Traders have been wind- wishes of prime minister Srettha
gling . Now, creditors in the space are turning against one [email protected] bets on Federal Reserve interest- ing back bets on expected US Thavisin who has stressed the
another in a bid to get repaid. Alvaria Inc., GoTo Group rate cuts, suggesting the battle rate cuts in recent months due to need to ease policy.

C
Inc. and Rackspace Technology Inc. are among a spate of urrency intervention has against dollar strength isn’t sticky consumer-price data, Poland’s central bank
troubled tech companies to agree to restructuring deals become a key battle- going to end anytime soon. which suggests emerging-mar- repeated at its 4 April meeting
this year that provide select lenders with better terms on ground in emerging mar- Increasing tensions in the Mid- ket policymakers still have that it may intervene to bolster
debt swaps than others, a process sometimes deemed a kets, especially Asia, as the latest dle East between Israel and Iran plenty of work ahead of them. the zloty. A stronger local cur-
form of ‘creditor-on-creditor violence.’ It’s part of a wider leg up in the dollar piles pressure risk creating a fresh surge in Thai policymakers are faced rency helps curb inflation, poli-
trend of heavily-indebted corporates looking to manage on officials to act. demand for the greenback as a with a stern test in trying to sup- cymakers said after they held
their liabilities by taking advantage of relatively loose In South Korea, Thailand and haven. port the baht, which has tumbled rates. And Bank of Korea officials
agreements with debt investors—known as covenants— Poland, officials have said they “Right now, we do see lots of about 6% this year. Their have said they are watching the
that can allow them to move assets out of the reach of are closely monitoring for cur- verbal intervention from differ- approach has been to use rhe- won closely, after it came under
creditors. Typically, firms threaten to do so because rency volatility or spelled out ent central banks,” said Marcella toric to try and talk it higher. pressure last week. Bank Indo-
higher borrowing costs combined with excessive lever- they’ll step in if needed. Indone- Chow, global market strategist at Faster-than-expected US inflation data last week damped bets on “The committee will continue nesia has gone a step further by
age have left some with balance sheets that are impossi- sia has gone a step further by JPMorgan Asset Management in Federal Reserve interest rate cuts. AP to closely monitor the volatilities buying the rupiah to limit losses.
ble to refinance, said Jason Mudrick, founder of dis- selling dollars and China has Hong Kong. Given the Fed in the foreign exchange market,” Governor Perry Warjiyo has said
tressed credit investor Mudrick Capital.“These two phe- repeatedly pushed back against seems unlikely to ease policy that there might be more verbal The uptick in central bank policymakers said at their 10 intervention and the sale of
nomena, coupled with the covenant-lite nature of depreciation, implying to trad- soon, “there might be more intervention that’s needed,” she activity is just another zone of April meeting. They kept inter- high-yielding securities will be
leveraged loans today, have been the primary drivers of ers that the yuan’s stability is key. weakening with regards to Asian said in an interview on Bloom- conflict stemming from the est rates on hold at the gathering their main levers this year to
the violence we’re seeing,” he said. BLOOMBERG Faster-than-expected US currencies and that may suggest berg TV. Fed’s pivot to higher-for-longer to help the currency, defying the underpin the currency.

What’s driving exuberance ‘India well placed to withstand short-term oil shock’
in defence sector stocks? Ram Sahgal
[email protected]
products in the market. What’s your advice to inves-
What’s the house view or tors on how to approach the
MuMbaI outlook for FY25? markets given the domestic
Dipti Sharma Given the strength of both and global economic and
Flourishing

I
[email protected] ndia is in a much better place the US and Indian economies geopolitical factors?
Defence expenditure to rise about 7% compounded annually
MuMbaI to withstand a sudden oil we do not expect aggressive While the economic outlook
during FY24–FY30
price shock unlike in the rate cuts as there is no need to is strong, market levels are not
FY22 military expenditure (in $ billion) As a % of GDP

T
here has been increased 1990s when both import and stimulate demand through rate cheap. In such situations, one
buying in the sector in US 877 3 export baskets were not as cuts in either. In US, even if the should focus on improving the
the past month driving diversified. Were the country Fed cuts short-term rates, one quality of the portfolio—rather
up the shares of Hindustan China 292 2 to face an oil price shock, it should not expect long-term than being in the riskiest seg-
Aeronautics Ltd, Bharat Elec- would not have to cut back on bond yields to drop much. The ments of the market. In this
tronics Ltd, Mazagon Dock Russia 86 4 oil imports as other items can yield curve is currently down- case, it is better to be invested in
Shipbuilders, Cochin Ship- India 81 2 flex to keep the current account ward sloping and will revert to large-cap companies with long-
yard and Data Patterns up in equilibrium and economic its normal upward sloping term track records. Investors
between 11% and 36%. What’s Saudi Arabia 75 7 output will not contract, Anish shape as and when short-term should invest with at least a
fascinating is the Nifty India Tawakley, deputy CIO, Equity, rates ease. From an equity mar- three-year horizon.
Source: Nirmal Bang Institutional Equities, SIPRI
Defence index has shot up 14% ICICI Prudential Mutual Fund, ket multiples perspective, it is One constant refrain is pri-

‘
PRANAY BHARDWAJ/MINT
in the past month, outpacing said in an interview, in the con- the long-term yield that vate capex not picking up
the Nifty 50, which has seen a annually (GDP growth esti- So, Nirmal Bang remains text of the rising tension in the flare to triple digits. What’s still is a big part of imports, matters and not as d es i red
mere 2% rise. mated to grow at a CAGR of bullish on the defence sector Middle East. Edited excerpts: your estimation of when it other import items like elec- the short term albeit invest-
Presently, much of the about 6.5% in FY24-30) for despite the recent sharp rise. The markets have discoun- will begin to hurt us (econ- tronics, tourism and education rates. So, one If high oil prices ment commit-
enthusiasm in this sector is fleet modernization of armed The basis for this optimism lies ted political continuity and omy and markets) and for services are substantial. And, should refrain persist for a ments for
due to recent preliminary bus- services, according to a Nirmal in the visibility of long-term domestic economic stabil- how long? the export basket is diversified. from building an prolonged period, green energy,
iness updates from the Bang Institutional Equities growth prospects, backed by ity. What’s your base case? If one were to consider the So the economy now can investment the- chip plants, etc.
defence equipment manufac- report on 5 April. robust order books and a The economy has been pru- economic impact, the current absorb fairly substantial oil sis around rate then currency are top news.
turers. HAL registered its India’s defence exports hit healthy pipeline. dently managed and is well account is in very good shape. price shocks given the level of cuts leading to should be allowed What’s your
highest ever revenue of over an all-time high of ₹21,083 The brokerage said that placed cyclically, i.e. demand is Also, we have significant rese- reserves and the elasticity of multiple expan- to depreciate take?
₹29,810 crore for FY24, which crore in FY24, up 32.5% year- India ranks as the world’s picking up and there is spare rves. Given this scenario, on a the current account. This is the sion. Home build-
Anish Tawakley
implies 11% year-on-year on-year. Also, nations like third-largest military spender capacity available to meet that temporary basis, shocks can be reason why Indian economy L a r g e - c a p Deputy CIO, Equity, ICICI ing and construc-
growth. BEL reported around UAE, Armenia, Guyana, and as of FY23, with its defence demand. This means output easily managed from an eco- did not lose momentum when returns have Prudential Mutual Fund tion are a very
14% growth in its turnover at Vietnam, are entering into budget making up 2.2% of the (gross domestic product), and nomic perspective. However, if oil prices went into triple digits lagged mids large part of pri-
aro-und ₹19,700 crore, while export deals with Indian firms. country’s GDP. For context, earnings growth, is likely to be high oil prices persist, then cur- in the first half of 2022. and smalls for vate sector capex.
Maz-agon Dock Shipbuilders’ Also, the defence ministry US spends 3.5% of its GDP on healthy over the next 2-3 years. rency should be What are the many years, particularly in There has been a clear and
turnover was up 20% at
₹9,400 crore.
has recently signed five major
capital acquisition contracts
defence, Russia 4.1%, France
1.9%, and China 1.6%.
So, we are fairly confident
about the economy in the med-
allowed to dep-
reciate as part of
INTERVIEW expectations
m on Q4 earn-
the last four years. Do you sharp uptick in this activity.
see the trend continuing, Capex intensive sectors like
Meanwhile, Cochin Ship- worth ₹39,125 billion. Over the past month, most ium term. Since we are not exp- the adjustment ings? What given 7-8% economic cement, power and steel are
yard has inked a deal with the “All policy-level announce- Indian defence stocks have erts in politics, we do not have process to high oil prices. are your views on BFSI, IT, growth and inflation at seeing fresh investment activ-
US navy. In February, GIC Pvt ments are being implemented, outperformed those in Europe any unique insights on what There is a difference betw- FMCG, industrials, pharma, 4-5%, resulting in nominal ity. So, it will be incorrect to say
Ltd acquired a 6.32% stake in leading to more orders for and the US. electoral outcomes will be. een the economy in the ’90s etc.? GDP of 12% or so? private capex is not picking up.
Data Patterns, valued at ₹650 domestic sectors, addressing With India’s general elec- Our approach is that if the and today. In the ’90s, oil was In general, we are positive on We are fairly concerned What’s your view on rupee
crore, via block deals. These capability gaps, and an incre- tion approaching and a moral economy is healthy and even if our predominant import item domestic cyclical sectors— about the small and mid-cap in the current fiscal?
developments further indicate ased focus on exports. Conse- code of conduct enforced, the markets were to turn volatile, and we did not export much, auto, capital goods, financials space and advise investors to be Fairly large inflows due to
the underlying traction. quently, the sector is witness- next round of ordering is likely then one should use that as an relying mostly on remittances and cement. These sectors are cautious. In past cycles, we bond index inclusion are expe-
Besides, with the govern- ing continuous rerating and only after the elections. Export opportunity to increase invest- to keep the current account in likely to see good volume have seen investors get drawn cted. So our base case is that the
ment fulfilling its commit- outperformance,” said Mehul orders are expected to con- ment levels. But, we are con- equilibrium. So when oil prices growth. We continue to remain into stocks based on excite- rupee is likely to remain rela-
ments, investor confidence in Jani, fund manager, Listed tinue in the meantime. cerned about valuations in the shot up, the only option was to negative on the FMCG space ment around earnings over 1-2 tively steady. In case there is a
the Indian defence sector is Equities, 360 ONE Asset. For the quarter ended small and mid-cap space, cut oil purchases, leading to a where the problems are not quarters. But liquidity in these oil supply shock, with a sharp
rising. The Indian government That being said, the ques- March and FY24, most def- where we believe the risk-re- sharp economic slowdown as related to the economy. These stocks tends to dry up when the and sustained increase in oil
plans to spend $130 billion in tion is: Are defence stocks in ence companies have declared turn trade-off is adverse. less oil meant less output. companies are trying to hold performance mean reverts. We prices, then the rupee would be
FY24-30, an increase of overvalued territory, or does robust performance on key Geopolitical tensions (Iran- Today, we have diversified margins at levels that are hurt- see the risk of a similar scenario expected to depreciate to allow
around 7% compounded this rally have more steam? parameters, analysts said. Israel) can cause crude to imports and exports. While oil ing the competitiveness of their playing out again. the economy to adjust.
LIVEMINT.COM CORPORATE MoNDAy, 15 April 2024
New Delhi 05

Indian stocks may Iran-Israel tension: Aviation,

not be ruffled by
Iran’s reprisal shipping brace for disruption
Ram Sahgal
[email protected]
MuMbAI
Conflict is sparking concerns over air travel safety and maritime security worldwide NCLAT set aside ‘fraudulent’

I
ran’s reprisal attacks on transfer of Smaaash brand by
Israel are unlikely to signifi- founder. ISTOCKPHOTO
cantly dent the Indian stock Nehal Chaliawala & Anu Sharma Federation of Associations in Indian
market unless Tel Aviv
responds, in which case crude
MuMbAI/NEw DElhI Tourism and Hospitality (FAITH).
Rajiv Mehra, President, Indian Asso- Appellate

T
oil prices could spike on sup- he ongoing conflict between ciation of Tour Operators, also exhoed
ply disruptions, market ana-
lysts said on Sunday.
Iran and Israel could disrupt
the aviation and shipping
similar views: “Oil prices have already
gone up and if airspaces close and flights
court okays
Their comments came after
the Tel Aviv Stock Exchange’s
(TASE) benchmark TA-35 If there is no escalation,
industries, sparking concerns
over air travel safety and mar-
itime security worldwide, besides a
have to take longer routes to cover the
same distance, it will lead to flaring of air
ticket prices, which will be detrimental
NCLT order
index closed up 0.27% at markets will take the latest
1938.18 on Sunday despite event in their stride. HT
potential rise in airfares, increased war-
risk premium for vessels operating in
to the travel and hospitality sector.”
Globally, some airlines may need to in Smaaash
Iran's overnight drone and the area, as well as risks to agriculture higher refuelling stock amid rising ten-
missile attacks. growth, corporate earnings
The TASE runs from Sun- and rupee. Markets will adjust
trade.
Following Iran’s recent attack on
sions. “All SWISS aircraft are currently
avoiding the airspaces over Iran, Iraq
case
day through Thursday. On as the situation develops,” he Israel with drones and missiles, several and Israel. As a result, flights from Delhi
Sundays, it opens at 9:59 am added. countries in the region, including Iran, (LX147) and Singapore (LX177) to Zurich Priyanka Gawande
and closes at 3:39 pm, and “If there isn’t any escalation, Jordan, Iraq, Lebanon, and Israel, tem- will make a refuelling stopover in [email protected]
operates between 9:59 am and markets will take the latest porarily closed their airspaces on 12 Vienna and arrive in Zurich with a delay MuMbAI
5:14 pm Israel Daylight Time geopolitical event in their April as a precautionary measure, before of several hours,” the Swiss flag carrier,

T
on other days. The Gift Nifty, stride,” said B Gopkumar, MD reopening on 14 April, albeit with which is a subsidiary of the Lufthansa he National Company
traded in Gift City, Gujarat, & CEO, Axis Mutual Fund. restrictions. Group, said. Law Appellate Tribunal
closed last week at 22452.50, “There could be some short- The mounting tensions prompted On Saturday, Iranian forces seized a (NCLAT) has upheld the
indicating a 67-point cut for term volatility, (but) no deep airlines to reconsider alternative routes container vessel, MSC Aries, linked to National Company Law Tribu-
Nifty at Monday opening from cut.” to avoid potential risks associated with Israel, escalating risks to trade passing nal (NCLT)’s November 2023
Friday’s close of 22519.4. How- With Israel-Iran hostilities flying over conflict zones. Flight track- through the region, and compounding order, setting aside the ‘fraudu-
ever, the Gift Nifty value will rising on Thursday, when ing websites reported diversions of air Following Iran’s attack on Israel with drones and missiles, several countries in the challenges for exporters grappling with lent’ transfer of Smaaash brand
be updated early Monday Indian markets were closed for traffic away from Iranian airspace, region temporarily closed airspaces. BLOOMBERG high freight rates amid the Israel-Pales- by founder Shripal Morakhia.
morning. Eid, after a missile towards Kazakhstan, Tajikistan, Saudi tine conflict. “The order dated 22 Novem-
“The markets Crude oil prices strike on the Ira- Arabia and Egypt. evolving situation in the Middle East, codeshare partner Turkish Airlines to “Agricultural trade will be signifi- ber 2023 continues to be oper-
across debt, could spike on nian consulate in However, even with these changes in and is operating its fleet on alternative avoid Iranian airspace for now. cantly impacted if the conflict escalates. ative,” said a bench led by justi-
equity, and gold supply Syria killed senior routes, the spectre of GPS jamming and flight paths. Experts anticipate higher air fares in Iran is one of the largest consumers of ces Ashok Bhushan and Arun
will be concerned disruptions if military com- spoofing looms large, further compli- Tata Group airline, Vistara, too, has the near term due to the volatile situa- basmati rice from India,” said Raajesh Baroka.
about the escala- manders, Indian cating navigation safety. adjusted flight routes for destinations, tion. “This will have an inflationary Bhojwani, managing director, RSCPL The order by the Mumbai
Tel Aviv
tion in conflict in stock indices The recent escalation in tensions was such as Paris, London and Frankfurt, impact on prices due to longer flying (IFSC) Pvt. Ltd. “War risk-premiums of bench of the NCLT revoked the
West East, as it is responds, market declined by a lit- in response to a suspected Israeli ships going through the region will transfer of the ‘Smaaash’
currently pricing analysts say tle over a percent airstrike earlier in the month on an WhAt lIES AhEAD? also shoot up. Just six months ago brand’s ownership, deeming
in business as as FPIs sold Iranian consular building in Syria, we used to pay $10,000 WRP for a Morakhia’s act “fraudulent”
usual with mini- shares worth a resulting in the loss of 12 lives. In CONflICt may lead tENSIONS prompt- SpECtrE of GPS ShIppINg lines face Supramax vessel. Now, we are pay- and directing that the brand be
mal impact,” said Nilesh Shah, provisional ₹8,027 crore and fact, the US and Israel were bracing to rise in airfares, in- ed airlines to recon-
creased war-risk pre- sider routes to avoid
jamming & spoofing
looms large, further
war risk premiums,
or opt for longer
ing $35,000.” Freight rates for tran- returned to the bankrupt
MD, Kotak AMC. trimmed their bullish deriva- for an attack for days after Iran mium for vessels, ris- risks related to flying complicating route to reach siting through the Red Sea and Suez Smaaash Entertainment Pvt
Shah caveated that market tives bets the next day. Buying vowed to retaliate. Manan Bajoria, ks to agri trade over conflict zones navigation safety Europe from Asia Canal, a key corridor for trade Ltd (SEPL).
concerns would hinge on pri- by DIIs worth ₹6,341.53 crore group vice-president, growth, ixigo, between Asia and Europe, have sky- The tribunal’s order came
ces and uninterrupted sup- limited the losses. said re-routing can result in longer rocketed since the Israel-Palestine after Bhrugesh Amin, the reso-
plies of crude . Brent oil active Indeed, retail and HNIs routes and higher expenses for flights among others, and is using contingency times, fuel price increase and volatility conflict erupted six to seven months lution professional of Smaaash,
futures closed at $90.15 a bar- turned aggressively bullish on originating from Europe, the Middle routes. This may result in longer flight in flying schedules. It will also lead to ago. Shipping lines now face steep war filed a petition to annul,
rel on Friday. Friday while proprietary trad- East and Southeast Asia. times on certain routes and associated enhanced travel uncertainty, thereby risk premiums, or opt for the longer rescind, cancel the back-dated
“Higher energy prices ers took a bearish stance and Air India, the largest group airline for delays, a Vistara spokesperson said. impacting the summer holidays travel Cape of Good Hope route to reach deed agreement signed
adversely affect inflation, cur- FPIs trimmed their bullish international air traffic to and from IndiGo is also rerouting flights to Baku, season as long as this conflict plays out,” Europe from Asia. between Smaaash and Fun
rent account deficit, GDP bets. India, said it is closely monitoring the Tblisi, and Kuwait, and has urged its said Aashish Gupta, consulting CEO, [email protected] Gateway in April 2022.
In his plea before the NCLT,
Amin asked the tribunal to
restrain Morakhia from trans-

GE sells Crotonville, a training ground for generations of managers ferring the ‘Smaaash’ trade-
mark to privately-owned Fun
Gateway Arena Pvt Ltd after it
was found that the brand was
Chip Cutter N.Y., where Crotonville sits. There is also a château with a Welch and other bosses at one What to do? A “Trouble- leadership development transferred through a back-
[email protected] A number of corporate wood-paneled library and fire- time visited nearly once a Shooting Guide” suggests that between KPMG’s site in Flor- dated deed of assignment
giants are now working to places. The marketing materi- month , regularly holding lec- GE managers conduct brain- ida and GE’s longtime facility. signed in 2022. He also asked

F
or decades, it was the site shed properties once used to als advertise that the scenic tures in a sunken auditorium storming sessions with staff “Crotonville was an amaz- that Fun Gateway be restrained
where General Electric train high-performing escape overlooking the con- known as “The Pit.” Suppliers and allow negative comments, ing, amazing resource for from using or dealing with any
managers arrived for days employees. 3M is looking for a fluence of the Missouri, Mis- and customers mingled over while focusing on efficiency GE—or it was in the past—to brand content of Smaaash,
of lectures, workshops and buyer for a more than 600- sissippi and Illinois rivers dinners and on walks along gur- and top priorities, according to build talent and we see it, too, including the company’s trade-
strategy sessions on mani- acre retreat center in northern could be redeveloped for a gling streams. Residence halls an article in The Wall Street as a real way to build talent,” marks. The NCLT said in its
cured grounds overlooking Minnesota known as research facility, a trade school scattered across campus held Journal in 1987. Knopp said. order that Morakhia and his
the Hudson River. Wonewok. Boeing is selling its or even senior housing. Boe- rooms where attendees slept. Some executives say a dedi- Officials in Ossining, N.Y., associate firms colluded to
Crotonville, GE’s famed nearly 285-acre leadership ing inherited the property At its peak, when employees cated place for learning and where Crotonville is located, syphon off critical and valuable
management academy outside center near St. Louis. when it acquired rival McDon- visited Crotonville, many were gathering still holds appeal. had pushed for the GE campus assets of the company, includ-
New York City, is now in new 3M bought the lakeside nell Douglas in 1997. often given assignments in Professional services firms to stay on the tax rolls, a reason ing the brand content and the
hands. property in the 1950s as a place As tech companies have GE’s decision to sell advance and a Deloitte and some locally hoped it would Smaaash trademarks through
An entity made up of real- “away from the office to share shed jobs in recent years and Crotonville represents an end learning agenda, In recent years, KPMG have both remain a commercial site and the 2022 assignment agree-
estate investors and family ideas and to dream,” according focused on efficiency, Sales- of an era in corporate training. with curriculum GE emphasized to created large cor- not a nonprofit such as a ment.
offices has purchased the to an account in a 3M corpo- force also cut ties with a 75-acre on techniques staff that learning porate training school or university. “This fraudulent action of
roughly rate history wellness retreat, known as the who is now the CEO of GE such as Six Sigma should happen retreats in recent The Crotonville Conference the erstwhile management of
60-acre book. The Trailblazer Ranch in Scotts Aerospace , said in an interview or strategies to years as a way to Center, as it is now known, is the company had denuded the
closer to core value of the company and is
campus for manufac- Valley, Calif., where employees in March. “Don’t for a moment improve GE’s bring employees managed by Pyramid Global
$22 mil- t u r e r attended training sessions and think we are backing away operations, said operations or and others Hospitality. The lecture halls likely to substantially reduce
lion, according to people decided to sell Wonewok as it enjoyed activities such as hik- from investments in the team, Noel Tichy, a pro- production sites together. Deloitte remain, along with amenities the financial proposal offered
familiar with the matter and underwent a cost-cutting ing and yoga. but there are a whole host of fessor emeritus at opened Deloitte including two restaurants, a by the prospective bidders/res-
the deed of the sale. It will now effort. Land conservancies, Executives can now easily ways to deliver that content.” the University of University in coffee shop, outdoor fireplaces olution applicants towards the
function as a conference cen- private individuals, resort train staffers via videoconfer- Culp had visited Crotonville Michigan who led executive Texas in 2011, while KPMG and an on-site helipad. acquisition of the insolvent
ter able to be booked by out- operators and other corpora- ence or through off-site events during his tenure as CEO of training at Crotonville in the Lakehouse, located outside Executives at Pyramid say firm under a resolution plan,”
side groups. tions have all expressed inter- held in hotels or other venues, GE, but says a big campus mid-1980s. Orlando, Fla., opened in early they are already hearing from the bench said.
GE’s decision to sell Croton- est in buying it, a person famil- management specialists say. didn’t make sense for the A new-manager starter kit, 2020. clients interested in setting up It added, “Since fraud vitiates
ville, part of its split into three iar with the matter said. GE, in recent years, has also newly split-up company. “It’s given to Crotonville attendees KPMG’s facility has 800 sin- meetings on the site, given its everything, this tribunal is
separate companies, repre- At Boeing, its St. Louis prop- emphasized to employees that beautiful, you would go there in the late ’80s, outlines doz- gle-occupancy guest rooms historical significance. “The pleased to direct Fun Gateway
sents an end of an era in corpo- erty has 14 classrooms, roughly learning should happen closer on vacation. It’s a great gather- ens of potential problems for and can train up to 1,200 peo- velvet rope has been lifted to return all the benefits earned
rate training. 200 guest rooms, a dining to core operations or at pro- ing spot, a great cultural melt- bosses, such as: “Your budget ple a day. The company uses it here,” said Dan Paradiso , by it on account of usage of the
“It’s a snapshot of a point in room that can seat about 250 duction sites, such as on its fac- ing pot. But it is one of those has been cut, but the workload for internal learning and regional vice president of sales brand content.” Fun Gateway
time of how companies used to people, sand volleyball and tory floors. things that each of the three increases. You’ve been told to development, plus as a way to and marketing for Pyramid. “It then moved the appeals court,
motivate and reward shining tennis courts, plus 5 miles of “I think we’re long past the, businesses will carry on in reduce staff while maintaining woo recruits or to convene cli- has been a birthplace for train- challenging the November
stars,” said Bridget Gibbons , nature trails, among other ‘I can’t believe you’re going to their own way,” Culp said. the current level of productiv- ents and hold conferences, ing and leadership for so many order. However, it later with-
director of economic develop- amenities, according to mate- do something with Croton- GE opened Crotonville in ity, but receive no advice on said Paul Knopp , the CEO of years.” drew the appeal, which led the
ment in Westchester County, rials marketing the property . ville’ moment,” Larry Culp, 1956. The late former CEO Jack how people are to keep up.” KPMG US. He sees parallels in ©2024 DOW JONES & CO. INC. NCLAT to dismiss the matter.

New films, shows building buzz with snazzy social media snippets
Lata Jha these are circulated across add to the crisis. promotional videos including and websites where people can buzz and piquing interest,”
[email protected] channels on both the studio or “Attention span of audiences trailers of movies and shows, quickly download content, Mudaliar said. However, the
NEw DElhI platform’s own accounts as well on the internet is low and it celebrity interviews and songs often revealing entire story- last category, of pirated con-
as via collaborations with con- takes a lot more to get someone posted by the production lines, including plot twists and tent, is completely uncontrolla-

F
ilm producers and tent creators and entertain- hooked to your content, than it house or OTT platforms where endings. “Of these, the first cat- ble, and highly detrimental to
streaming platforms are ment portals. did before. Especially for plat- content is often scripted and egory alone is controllable. paid viewing options, impact-
adopting a new strategy to While some industry experts forms or producers that do not reviewed and thus, rarely Influencer-led ing both produc-
lure viewers to watch their say this is one way to build vol- boast of huge budgets, more divulge the plot or storyline of content, while Some say this can tion companies
titles at a time attention span ume and generate buzz around clips increase the chances of the movie. Then there is influ- controllable to backfire with and OTT plat-
has shrunk amid a surfeit of a film or a show through means the content going viral organi- encer-led content including some extent, is significant chunks forms.
entertainment options. other than just the trailer and cally, since merit is no longer clips on social media in reaction not in collabora- of films or shows Rajat Agrawal,
They are increasingly releas- traditional marketing tech- the only criterion for content to to popular or newly-released tion with the pro-
available for free, director and con-
ing short clips or snippets, usu- niques, others say the strategy catch on to viewers’ algo- movies and shows, which do duction company. tent syndication
ally lasting between five and 10 can backfire with significant rithms,” said Girish Dwib- Filmmakers, streamers are releasing clips on social media, giving contain snippets of storylines While most influ- diluting the need head, Ultra Media
minutes, on social media chan- chunks of the film or the show hashyam, vice-president, strat- away major dialogues, scenes to get viewers hooked. BLOOMBERG (or more), but the majority are encers are careful to sign up and pay & Entertainment
nels like Twitter, Instagram available on social media for egy and business head at Docu- accompanied by spoiler warn- enough to include Group, said in
and Facebook, giving away free, diluting the need to sign Bay, a documentary-streaming add that the bigger priority is to Play, the recommendation and ings, he said. spoiler warnings, case of old films,
major dialogues, scenes and up and pay to watch it either in platform. get noticed. content discovery platform for But there are also illicit or or restrict divulgence of the releasing snippets on social
songs of the titles to get the theatres or on an OTT plat- Dwibhashyam conceded Social media is replete with streaming services launched by bootlegged clips that are often storyline, leaks around certain media can be a conscious deci-
viewers hooked. From intro- form. that releasing multiple clips clips from movies and shows, HT Media Labs (part of same recorded in theatres via mobile plot lines happen. In most sion or a marketing strategy to
ducing pivotal characters to Illegal leakages from the film does take away a part of the often without spoiler warnings, organization as Mint) said. phones or other devices, dis- cases, this ends positively, con- lure viewers to watch the com-
revealing major story arcs, or show via pirated means can story’s reveal, but was quick to Avinash Mudaliar, CEO, OTT- These can be of three kinds: tributed online via social media tributing to the promotional plete film.
06 MoNDAy, 15 April 2024
New Delhi CORPORATE LIVEMINT.COM

Will Wipro be able to hold on E-gaming, payment apps most

advertised in this IPL season
to Thierry’s 18 ‘musketeers’? FROM PAGE 1

peaked during thez previous

season but have seen a 30%
decrease this year, yet they out-
perform their own spends from
Delaporte’s exit and Pallia’s induction as CEO have stoked talks about an executive panel rejig season 15 by 12%,” he said.
On digital, the story is simi-
lar. E-commerce wallets are
Jas Bardia will be on Wipro.” making a comeback after being
[email protected] Others, such as Navnit Singh of Korn absent in the 16th season. This
Bengaluru Ferry, don’t see any movement from could primarily be because
Wipro’s executive committee just Paytm is going through legal

T
hierry is gone. What happens because Delaporte has departed from turmoil and other companies
now to ‘Thierry 18’? The ref- the company. want to position their wallets as
erence here is to the 18 mem- “If Thierry has hired someone, every- the prime choice. Additionally,
bers of the executive commit- one was involved in that decision-mak- advertising for products like air Advertising for products like air conditioners has risen over 40%
tee of Wipro, India’s fourth- ing, and it was not a unilateral decision,” conditioners has risen over in this season compared to the last. AFP
largest IT services company, who joined said Singh, chairman and regional man- 40% in this season compared to
the firm after Thierry Delaporte took aging director of the executive search the last, capitalising on the hot ICC Men’s T20 World Cup in this year but is advertising a lit-
over the CEO’s role in July 2020. Now, firm. “All members of the executive summer months. June have resulted in less tle less.
with Delaporte gone, these 18 find committee are there on the basis of their Also, because of the broad- spends on advertising for this “This year, the percentage of
themselves in a company without the performance and will be there on that casters splitting up, while season, said Sandeep Ranade, people watching the IPL on
person who got them in. basis.” advertising rates have stabi- executive vice president and digital has also increased and
The departure of Delaporte early this On Wipro’s latest CXO changes lised at similar levels to last head of quantitative research we have observed that most of
month, one year short of completing his involving internal candidates being year, it has generally become division of Hansa Research. them are seen streaming them
full term, and the induction of Srinivas given the top job, Singh said internal more expensive for advertisers “Most advertisers are con- on their connected TV screens
Pallia, a Wipro veteran, in the corner candidates always have higher motiva- to advertise. cerned about whether they rather than on their mobiles,”
office has stoked apprehensions about a tion. “Additionally, internal candidates This is because instead of should use up their entire said Ranade. “In general, we
reorganization within the executive know the environment, the company advertisers getting a combined advertising budgets in Q1 or have observed that TV and digi-
committee—one of Wipro’s highest culture, and loyalties to those individu- deal from the same broad- hold off till Q2 when the World tal are at par this year, for now at
decision-making bodies—or another Thierry Delaporte resigned as MD&CEO of Wipro with effect from 6 April. PTI als are also high,” he added. caster, they are now having to Cup happens,” he said. least. We will wait for another
top-level exodus. Experts, incidentally, An executive of a third search firm make separate deals with the He added that while brands week of data to come in to see
are divided over the possible impact. Of these 18, six members are based in Some, like Ritu Sethi of ABC Consult- said chances of a mass departure of two broadcasters—Star Sports and sponsors or associate spon- how the season has panned out.
An analysis by Mint shows that at least India, and 12 abroad. With the other 13 ants, expect definite churn. Sethi, who is executive committee members leading for television— sors get high visi- The first two weeks have seen
three of the ‘Thierry 18’ came from Cap- who were in the committee before Dela- partner-technology, offshoring and out- to instability look bleak. “I can expect and Reliance’s Jio There was also bility, the data some front loading of some
gemini, akin to Delaporte. porte also being from overseas, this sourcing at the New Delhi-based senior some reorganization within Wipro, but Cinema OTT plat- My11Circle, which they have col- companies’ media plans, but
Anis Chenchah worked with Cap- implies that 4/5th of the executive com- executive search firm, said she expects the existing executive committee mem- form for digital. was more lected from the surely more brands could be
gemini for 15 years until he joined Wipro mittee is based abroad. That is perhaps 3–4 immediate exits, and a bigger churn bers will not be sacked,” said the Delhi- Because of this prominent this first two weeks added as the season reaches the
in April 2022 as CEO of Wipro’s Asia-Pa- to be expected as Wipro gets nearly 90% over six months to a year, in an emailed based executive on the condition of ano- split, advertising shows that, as end,” he added.
year but is
cific, Middle-East and Africa nymity. “We expect most of the 18 revenues have expected, it is Mint had earlier also
advertising a
(Apmea) region. Amit Choudhary, IN DELAPORTE’S WAKE members who joined the Wipro shrunk overall.
little less
Dream11, which reported that the cost for
who had also worked in the French executive committee after Thierry Broadcaster Dis- creates advertis- advertisers on Star Sports is
IT firm for 15 years, joined six EXECUTIVE search SOME expect a OTHERS don’t see ONE expert believes joined as CEO to stay. It is important ney Star was ear- ing specifically for ₹12.5 lakh for a 10-second slot in
months later and was handed the firms differ on the
future of not just
churn, with “3–4 exits any movement from
immediately, and a Wipro’s executive
Wipro would want
to avert another
they show their mettle now and per- lier showing the the IPL, that is the SD (standard definition) and
COO baton. Lastly, Ajit Mahale, who “Thierry 18” but also bigger churn over six committee on back top-tier exodus by form without the person who IPL on both digital and televi- most recalled brand followed ₹5.3 lakh for HD (high defini-
worked in Capgemini until January the executive panel months to a year” of Delaporte’s exit talking to them bought them in being in the com- sion, but the pool of revenue by Tata group’s Tata Neu and tion). On Jio Cinema’s plat-
2021, joined Wipro as its chief deliv- pany,” said the executive. dropped from ₹4,600 crore in Tata cars, according to research form, sponsors will pay ₹200
ery officer in February 2023. The executive added that Wipro 2022 to about ₹4,000 crore in from Hansa Research. per thousand impressions
In their earlier roles in Capgemini, of its revenues from the Americas and response to Mint’s queries. would want to avert another top-tier 2023, with Star receiving a In the top 10 are also surro- (CPM) for ads displayed before
Chenchah, Choudhary, and Mahale Europe. “We expect that as much as 40% of the exodus and the resulting instability by majority of the revenue, Mint gate brand Vimal Elaichi and and after matches. The cost for
held positions of CEO for Capgemini Mint’s queries to Wipro were unan- current executive committee leaders talking to them. On 25 December 2023, had earlier reported. HDFC Bank’s Payzapp, Rupay a spot on connected TV is ₹6.5
Business Services, chief operating offi- swered until press time. brought in by Thierry Delaporte may less than six months before Delaporte’s But this year too, advertising and AngelOne, which have lakh. It’s important to note that
cer (COO) and executive vice-president Executive search firms have differing depart in the next year,” said Sethi. “The exit, Mint reported that at least 22 senior rates have been sluggish so far. replaced Cred in terms of spon- these advertising rates are simi-
(EVP) of Capgemini’s global financial opinions on the future of not just the people already there in the executive executives ranked senior vice-president Company budgets and other taneous brand recall value. lar to those of the previous year.
services strategic business unit, and “Thierry 18” but also of the executive committee will take some time to settle (SVP) and above had left the company external factors like the general There was also My11Circle, The season began on 22 March
vice-president (VP), respectively. committee itself. under the new leadership and all eyes after Delaporte took over as CEO. elections and the upcoming which was more prominent and will go on till 26 May.

Vedanta to raise up to ₹4,000 cr World weighs risks of Israel Ofbusiness catches

FROM PAGE 1
retaliating against Iran industrial hub of Jharsuguda,
and is connected by national
unusual tailwind
Vedanta has sharply highways and railway stations.
increased its focus on energy
generation over the past two
years. Last month, Serentica
Vedanta’s power strategy is
in focus amid the group’s ongo-
ing demerger. While the
FROM PAGE 1

minor damage to an army base.

region shot down Iranian-
launched drones targeting
Israel. The US considered the
in new IPO chase
Renewables, a renewable demerger proposal awaits Hagari earlier called the attack military response to the Iranian FROM PAGE 1
power company promoted by creditors’ approval, the com- from Iran “a severe and danger- attack a success, another Amer-
Agarwal’s Sterlite Power, said it pany’s shares have jumped over ous escalation.” ican official familiar with the on the IPO.
would invest ₹25,000 crore to 33% in the past three months, US President Joe Biden held matter said. Indian regulators require
expand its projects portfolio to hitting 52-week highs in a few a phone call with Israel’s Prime The UK defence ministry companies to build a suite of
about 4 GW by June 2025. Ster- sessions this month. Minister Benjamin Netanyahu said it deployed Royal Air Force independent directors, ensure
lite will first commission 600 “The development demon- after the Iranian attack was jets to intercept Iranian drones governance compliance, and
MW of renewable energy pro- Vedanta chairman Anil strates Vedanta’s capital-rais- countered. Biden, who had headed for Israel if necessary. consolidate financial control
jects and add 500 MW of capac- Agarwal. PTI ing ability from diverse sources returned to the White House Israel has upgraded its air processes before filing for an
ity in each subsequent quarter. to fuel the growth of its portfo- from his private residence in defences considerably over the IPO. Ofbusiness has met most
In September, Serentica acquired Athena Chhattisgarh lio and to build world-class Delaware on Saturday, said in a Israel launches missiles to past decade and a half, adding of these parameters and should
received ₹2,600 crore from Power Ltd for ₹565 crore to assets. [The stock] has seen post on X that American com- intercept those from Iran. AP new systems for interceptions be in a position to begin work
PFC for its hybrid renewable meet its captive power require- buying activity from domestic mitment to Israel’s security is of ballistic missiles fired from as on its DRHP in 3 months,
energy projects in Karnataka, ments. Athena Chhattisgarh and international funds,” said “ironclad.” Iran’s response will be consid- far away as 2,400 kilometers. Mohapatra said.
which are being built to meet currently has a 1.2GW coal- the person mentioned earlier. Iran’s mission to the United erably more severe.” That range includes Yemen, In FY23, Ofbusiness more
captive energy needs of based power plant at Jhanjgir- The company recently Nations said the action was a Multiple alarms sounded in Syria and Iraq, where militant than doubled its operating rev- Ofbusiness co-founder and
Vedanta group companies. Champa district. announced the commissioning “legitimate” defensive various locations in Israel: Jeru- groups allied with Iran are enue to ₹15,342.57 crore, while CEO Asish Mohapatra.
The latest financing follows The acquisition will fulfil the of a new 1.5 metric tonnes per response to the strike in salem, Beer Sheva and Dimona based, as well as Iran. increasing its profit by about
Vedanta group’s takeover of power requirement of annum expansion at its alu- Damascus—which Israel hasn’t in the south, and the Jewish set- Israel’s most active and well- the same measure to ₹462.76 Over the years, Ofbusiness
Meenakshi Energy on 28 Vedanta’s aluminium business, mina refinery in Lanjigarh, acknowledged carrying out— tlement Ariel in the West Bank. known air defence is Iron crore. has spent about ₹1,300 crore on
December via an NCLT-driven and through vertical integra- Odisha. This additional capac- and suggested it was a warning. Residents of Jerusalem Dome, which has intercepted In FY24, profit has jumped to 10 acquisitions in sectors such
insolvency process. Meenakshi tion, may result in a cost advan- ity will take the overall name- It also warned the US to stay reported hearing blasts. Alarms thousands of rockets fired by ₹700 crore on a 38% surge in as steel, garments and agricul-
Energy has a coal-based power tage in terms of power con- plate capacity at the Lanjigarh away from the conflict. also sounded in Israel’s north. Palestinian militants in Gaza revenue, Mohapatra said. ture. Some of its recent acquisi-
plant at Nellore, Andhra Pra- sumption. refinery from 2 mtpa to 5 mtpa. “The matter can be deemed The Israel Defense Forces said since 2011. But Iron Dome is Ofbusiness is yet to officially tions include steel manufac-
desh, which Vedanta will use to Athena’s plant, built close to Vedanta Sesa Goa also com- concluded,” the Iranian mis- it cut off GPS services in some designed for missiles and report its FY24 financials. turer SMW Ispat and Koeleman
supply power to merchants. Mahanadi river, is about 80 km menced mining operations at sion said in a social media post. areas to help counter the attack. drones with a short range, and Ofbusiness’ benchmarks to India Pvt. Ltd, which marked its
In August 2022, the London- from the Balco aluminium fac- the Bicholim mineral block, “However, should the Israeli A US defence official con- is just one of the advanced mis- list publicly are in sharp con- entry into the food processing
headquartered mining giant tory, and about 180 km from the adding to its growth plans. regime make another mistake, firmed that its forces in the sile-defence systems in place. trast to what many startups sector.
have been doing in recent The company plans three
years. more acquisitions this year,
While some startups with a Mohapatra said, adding that

TCS headcount drops as it leaves many roles unfilled clear path to profitability went Ofbusiness will spend another
public during the pandemic ₹200-300 crore towards these
even as they were loss-making, purchases, which will largely
others sought to become prof- be in the garments space.
FROM PAGE 1 “The era of revenue-up coin- achieved in the previous fiscal. ongoing macro uncertainty itable and assess the sustaina- Steel is another important
ciding with an increase in However, the management was including US interest rates.” bility of those area for acquisi-
the company’s top executive headcount is fading out,” said still a tad shy from acknowledg- At the heart of this scepti- profits for 4-6 Over the years, tion as the sector
defended the dips, saying the head of a Bengaluru-based ing if growth will be in double- cism is the fact that two-thirds quarters before Ofbusiness has accounts for
headcount ups and downs are a recruitment firm that hires for digits. TCS, which does not give of TCS’s business grew less going for an IPO. spent ₹1,300 cr on about 32% of
product of utilization and not TCS, on condition of anonym- forward-looking guidance, has than its headline 4.1% growth Other compa- 10 acquisitions in Ofbusiness’s reve-
revenue. ity. “There will be further dips maintained that it aspires to last fiscal. North America, nies in the B2B nue. While many
sectors such as
“We continue to drive effi- in manpower going ahead clock a double-digit growth. which accounted for 51% of its segment, too, of these acquisi-
ciencies, we continue to look at across IT services once more “Headcount $29.1 billion in have seen steep steel, garments tions were exe-
where we can better deploy our AI-driven processes come in. declined sequen- Traditionally, fall revenue, fell 2.3% growth rates in and agriculture cuted at a con-
associates and where we can The need will be only for more tially for the third in headcount has from FY23, as recent years. Zet- servative scale,
take the trainees ahead of time. specialized skills.” straight quarter been associated customers con- werk, Infra.Mar- “we want to
So, maybe in, let’s say, Q1 or Q2 TCS is already looking for and finished down with lower tinued to hold ket and others have been prof- acquire either buyers or suppli-
we take trainees or headcount specialists on an urgent basis, to in FY24 vs FY23, back from spend- itable and are attracting inves- ers for vertical integration and
earnings for IT
may go up, but the training pro- the extent that it recently which all else ing more on tor interest. for market entry into a sector
cess may take about six months started offering vendors equal is not companies, and IT-related out- Ofbusiness has raised nearly which is very adjacent to what
or nine months before we start ₹40,000 per candidate over In FY24, headcount of TCS declined over three consecutive encouraging for vice-versa sourcing work for $900 million across 11 funding we do today… this gives more
deploying them,” K. Krithiv- and above their regular fees if quarters through March 2024. HT demand inflec- a clutch of rea- rounds, according to the earlier value for our customer base,”
asan, managing director and they manage to make senior tion,” Keith Bach- sons. And its big- Mint report. The company, Mohapatra said.
chief executive officer (CEO) of candidates join in less than 30 ces being made by AI, the $250- mining an IT company’s health. man, an analyst with BMO Cap- gest business vertical—bank- which was valued at about $5 Acquiring companies with
TCS said in response to a Mint days. The urgency to get expe- billion Indian IT sector contin- On Friday, when it declared ital Markets, wrote in a note ing, financial services and billion in 2021, counts Norwest specific specializations or start-
query during the results last rienced employees in programs ues to heavily rely on engineers its fourth-quarter and full-year dated 12 April. “Net, we think insurance (BFSI), reported a Venture Partners, Matrix Part- ups with a similar problem
Friday. “So, to say that this like Flutter, Windchill, Work- taking on coding work for earnings, TCS’s management the spend environment could de-growth of 1.3% and ners, Alpha Wave Global, Tiger statement but which are yet to
quarter, the headcount went up day, and SAP, among others, is banks, manufacturing compa- said the company would improve in 2HCY24, though accounted for 32% of total reve- Global, and Softbank Vision attain scale will allow Ofbusi-
so the immediate next quarter a sign that markets are opening nies, and retail giants, among growth faster in the current fis- we believe there remains nue in FY24, compared to Fund 2 among its investors. ness to go deeper into
the revenue should go (up), up for the IT services firm. others, which is why hiring cal year (FY25) than the 4.1% uncertainty on the slope of 33.3% in FY23. A string of strategic acquisi- existing markets, according to
may not be a correlation.” However, despite the advan- assumes significance in deter- dollar revenue growth it improvement especially given [email protected] tions Mohapatra.
LIVEMINT.COM CORPORATE MoNDAy, 15 April 2024
New Delhi 07

PVR Inox scripts a new show How manufacturing evolved

as a key investment theme
with revamped biz strategy Dipti Sharma
[email protected]
MUMBAI

W
hile India’s bench-
mark indices have
MD Ajay Bijli says the focus is on improving operational performance, optimizing expenses hogged the head-
lines for scaling new peaks, and
small- and mid-cap indices for
Gaurav Laghate assets more effectively. This includes their frothy valuations, one
[email protected] entering into partnerships with land- segment of the market has qui-
MUMBAI lords or real estate developers for invest- etly outshone them all—manu-
ment purposes, repurposing certain facturing.

O
ne year after the merger properties, and renegotiating rental The sector, in fact, is thriv-
of India’s top two multi- agreements to drive value-creation. ing, bolstered by increased
plex players, PVR Inox Bijli said the company has identified investments and the Union The Nifty India Manufacturing index has surged an impressive
Ltd is embarking on a around 125 non-performing screens, government’s push for indige- 14% so far this year. MINT
strategic shift towards which it plans either to shut or to rene- nous production with its ‘Make
enhancing greater operational flexibil- gotiate rental contracts wherever the in India’ drive and production- ments, and promoting indige- experts.
ity, and reining in expenses and debt. lock-in period is over. linked incentive schemes. nous manufacturing. Besides, the industry also
Ajay Bijli, managing director of PVR “If there are screens which are value- This has borne out in the “The sector’s growth is evi- expects further progress in
Inox, outlined the company's roadmap destructive, we are going back to the stock markets as well. The Nifty dent, focusing on key indus- supply-side reforms, including
for the next 12-18 months in an interview developers and asking them to renegoti- India Manufacturing index has tries such as chemicals, phar- clean energy transition,
with Mint. The firms seeks to increase ate or reset the rentals, especially where surged an impressive 14% so far maceuticals, electronics, auto- increased focus on local manu-
focus on operational performance, debt lock-ins are over,” he said. this year, eclipsing the bench- motive, industrial machinery, facturing, and targeted policies
reduction, and transition towards an “We will make sure that most of the mark Nifty 50 and broader and textiles,” Bhowar said. for youth, the poor, women,
asset-light model, he said. deals, going forward, are on a revenue- market indices. The Nifty Mid- In the interim Union budget and farmers.
With a gross debt of ₹1,725 crore as of sharing basis, and if there is an MG (min- cap 100 and the Nifty Smallcap for 2024-25, the government “During a potential third
FY24, PVR Inox—the world’s eighth imum guarantee) proportion, it is ‘mini- 250 have risen by about 8% increased the allocation for term for (Prime Minister Nar-
largest multiplex chain—is prioritising mum’ as per the definition of MG.” each this year, while the Nifty production-linked incentive endra) Modi, we would expect
initiatives aimed at improving return on The company aims to reduce the 50 has gained 4-5%. schemes to ₹6,200 crore from further progress towards digi-
capital employed, and Ebitda margins. rental cost to pre-covid levels (16-17% of The outperformance not ₹4,645 crore in 2023-24 (bud- talisation and continued policy
Bijli’s grand plan involves closing under Ajay Bijli, managing director of PVR Inox, talks of pivoting towards an asset-light revenue) from the current 19-20%. only alludes to the growing rec- get estimate). push toward manufacturing/
performing screens, renegotiating the model. MINT PVR Inox has over 1,741 screens in ognition among investors of Similarly, the allocation for exports, given India’s increas-
rental contracts, and optimizing capital India across 361 properties in 113 cities. manufacturing as a key theme, the Modified Pro- ing footprint in
expenditure to generate positive free films either excel or falter. profit declined 20% to ₹12.8 crore from The company added 97 screens in the but also points to early evi- gramme for The sector global value
cash flow. While the financial third quarter ₹16 crore in the corresponding year-ago first nine months of FY24 while exiting dence of India developing into Development of is thriving, chains,” analysts
“We are completely pivoting towards (October-December) saw significant period. So far this year, PVR Inox’s 62 underperforming screens. a global manufacturing hub. Semiconductors bolstered by of UBS Securities
an asset-light and asset-right model, audience turnout driven by films such as shares have lost nearly 15% on NSE, con- “We are still expanding. We will still While the country has out- and display man- increased India said in a
which means that we are telling all the Animal, Salaar, Dunki, and Sam trasting sharply with the benchmark be opening 100 odd screens per year, shone in the services sector, ufacturing eco-
investments and report dated 18
developers who want us in their proper- Bahadur, the final quarter experienced Nifty 50’s 3.6% gain. but we’ll be prudent in terms of how especially in information tech- system was more March.
ties now that it will be like a Foco model, a subdued performance as films across Facing an unpromising slate for the much we spend and how much contri- nology, India’s manufacturing than doubled to the govt’s push All said, manu-
which is franchise-owned and com- bution we get,” Bijli said. “I’m bull- industry has lagged thus far. ₹6,903 crore for for Make in India facturing relies
pany-operated,” Bijli told Mint. SCREEN OPtImIzatION ish on the cinema business and I India aims to raise its share of 2024-25 (BE) heavily on well-
Since completing the merger in know that the industry is going to manufacturing to 25% of GDP from ₹3,000 functioning infra-
February 2023, PVR Inox emerged thE plan is to shut PVR Inox’s measures DOmEStIC BIJlI said the bounce back. Just that… I would err by 2047, from about 17% cur- crore in 2023-24 (BE). Other structure, and to ramp up activ-
as India’s largest exhibitor by a sig- non-performing
screens, renegotiate
seem necessary
since the movie
box-office revenue
dropped 20-30%
company has
identified around 125
on the side of caution and make sure rently. Manufacturing exports schemes such as solar power ity in the sector India will need
nificant margin. Experts suggest rental contracts, and industry is facing a y-o-y in three months non-performing that we get much better margins.” hit a record high of $447.46 bil- (grid) and national green to focus on increasing produc-
that the company, benefiting from optimize capex dearth of good films ended 31 March screens The company wants to reduce its lion in FY23, a 6.03% increase hydrogen mission also received tivity by scaling up infrastruc-
its scale, can afford to make bold capex by 30-40% to ₹ 400-450 from $422 billion in FY22, significantly higher budgetary ture, ensuring fewer power
moves, such as shutting underper- crore by entering into partnerships reflecting the underlying allocations. A focus on policy outages, and avoiding below-
forming screens, without fearing a nega- languages struggled at the Indian box first half of the fiscal year, experts advo- with landlords for investment purposes. momentum. continuity following the gen- par transport infrastructure.
tive impact on footfalls. office. According to Mint’s estimate, cate for PVR Inox adopting a conserva- On plans to be a net-debt-free company Vipul Bhowar, director, eral election in April-May “This (poor infrastructure)
PVR Inox’s measures seem necessary domestic box-office revenue dropped tive spending approach and prioritizing in 2-3 years, Bijli said debt-reduction is listed investments, Waterfield would bolster economic and has kept the size of the manu-
at a time the movie industry is grappling 20-30% year-on-year in the three return on investment. a key priority for PVR Inox, with efforts Advisors, said initiatives such as business sentiment and but- facturing firms small, making it
with a dearth of quality films. Audiences months ended 31 March. For its business revamp, PVR Inox is underway to monetise real estate assets ‘Make in India’ and PLIs have tress a much-anticipated difficult to exploit economies of
have become increasingly discerning in For PVR Inox, despite a robust 64% drawing inspiration from successful inherited from the Inox merger in prime played a crucial role in foster- recovery in private capital scale,” Bhowar pointed out.
their movie-going choices, leading to a surge in revenue from operations dur- retail brands in India and identifying locations such as Mumbai, Pune, and ing a favourable business envi- expenditure on infrastructure “Land acquisition is also a chal-
stark divide in box-office performance— ing the third quarter, consolidated net opportunities to leverage its real estate Vadodara. ronment, encouraging invest- and manufacturing, say lenge.”

AFOL connection: Grown-ups are now a gold mine for Lego

Trefor Moss widely accepted, more cus- a month growing their Lego
[email protected] tomers view it as a treat— stockpile, they said.
MANCHESTER, ENgLANd akin to splurging on new Four years ago Darren Hall-
sneakers or a handbag— bury, an ambulance techni-

L
ego has always been a toy rather than a frivolous pur- cian, was struggling to think of
for children, but try tell- chase they should feel guilty something to buy his hus-
ing that to its legion of about, she said. band, Mark, for Christmas
adult fans. Lego has been surprised at when he spotted a fairy-tale
Grown-up builders, often the popularity of some adult Gingerbread House set in the
rediscovering Lego after what sets. High demand for its range window of his local Lego store
The IMF and the World Bank hold their Spring Meetings in aficionados refer to as the of plants and flowers, particu- in Birmingham. “I just
Washington DC this week. AFP “dark age”—the void separat- larly among women, thought it was something dif-
ing childhood fandom and its prompted the company to ferent,” he said. “It snowballed

‘Great escape’ is no resumption as an adult—are

increasingly helping cement
the Danish company’s status as
broaden its so-called “botani- from there.”
cal collection.” The range now The novelty gift developed
includes a succulents display, into an all-consuming pas-

comfort to G-20 the world’s biggest toy maker

by sales.
“We don’t buy every new set
a wildflower bouquet and a sion, to the point where the
bonsai tree. Hallburys, like other com-
Adult fans of Lego are also mitted AFOLs, now travel to
that comes out,” said Jonny big buyers of loose bricks to Lego exhibitions to display
Bloomberg retary Janet Yellen, UK chan- Edmondson, a 38-year-old make bespoke builds. Lego their creations. Their latest
[email protected] cellor of the exchequer Jeremy graphic designer at a mass When Lego first started, it had little clue that its toys would ever appeal to adults. BLOOMBERG sells assorted bricks in stores construction was a sprawling
Hunt, and the heads of the gathering of Lego enthusiasts and online through its Pick a replica of Jurassic Park

I
f the world economy is head- European Central Bank, Bank in Manchester in February. some grown-up sets, but they 5% five years earlier, Tormod activity for grown-ups. Brick service, where thou- depicting dinosaurs rampag-
ing for a soft landing there’ll of Japan and Bank of England. “We’ve got to eat.” weren’t easy to identify. That Askildsen, then Lego’s head of “Nowadays it’s not so sands of individual pieces are ing across a finely detailed
be plenty of anxiety along the The politics of the moment Lego has doubled the size of changed in 2020 when it AFOL engagement, said at the geeky,” said adult fan Sian available. It also owns the jungle landscape. They spent
way, with Iran’s missile attack have hamstrung the G-20 at its range targeting people over launched a new 18+ category, time. Lego declined to disclose Twynham, who got into Lego BrickLink online 19 months build-
on Israel putting an exclama- recent gatherings, and it will the age of 18 since it launched comprising elaborate and current sales figures but said while she was on maternity marketplace, In 2020, Lego ing it in their
tion point on global jitters. likely again be unable to in 2020, and has made a series often pricey sets in serious- sales of adult sets had contin- leave from her job as a phar- which it bought launched a new garage.
As the world’s financial elite address risks that split its mem- of ads aimed at older builders looking black boxes. The 18+ ued to grow since the pan- macist in the central English in 2019 to 18+ category, “This is a side
gather in Washington for bers. with the slogan “Adults Wel- sets include the Lego Icons demic, and that it plans to fur- town of Market Harborough. “strengthen its comprising project,” said
meetings of the International Russia’s war in Ukraine has come.” The best part from the range. Among its “advanced ther expand the range. “You can have a set on your connection” with Simon Pickard,
elaborate and
Monetary Fund (IMF), World dragged into its third year, with company’s perspective? builds designed with adult fans Lego has 142 sets designed coffee table and no one would its adult fan base. introducing Out-
Bank and Group of 20 (G-20), US military support in question Adults will pay grown-up pri- in mind” are a $200 Concorde for grown-ups, out of 926 sets bat an eyelid.” Her daughter, At Bricktastic, often pricey sets post 6987, a
they’ll confront a mixture of and Kyiv’s ability to pay for bul- ces that kids could only dream replica with 2,083 pieces and a currently available on its U.S. now eight, has also become a the U.K.’s largest in black boxes 300,000-brick
slowing growth, stubborn lets and bond coupons an of. 6,167-piece, $500 depiction of website. Of the 42 Lego sets Lego nut. Lego show, held Martian space-
inflation, high interest rates increasing focus. The Israel- Think $850 Millennium Rivendell, the Elvish town now on sale that cost $300 or Movie tie-ups are popular in the northern port that took
and debt levels, and market- Hamas war in Gaza, mean- Falcons and $680 Titanics. from “The Lord of the Rings.” more, all but two are for adults. with older builders. Besides English city of Manchester, him, together with his father
rattling geopoliti- while, risks tip- When Lego first developed For many adults, buying Sales to adults have helped Star Wars and Marvel sets, the some of the country’s most David and his son Jeremiah,
cal risks from Kyiv Bloomberg ping the Middle its plastic bricks in the 1950s, it Lego had previously triggered drive up Lego’s revenue, adult Lego lineup includes the ardent adult Lego fans exhib- nine years and some $40,000
to Tel Aviv. Economics sees East into a wider had little clue that its colorful “a kind of embarrassment— which has more than doubled DeLorean from “Back to the ited creations they’d been to build. (AFOLs are often
Bloomberg global activity conflagration. spaceships, racing cars and they would go into a store and over the past decade to hit $9.7 Future,” the white Cadillac laboring over for months, if deeply immersed in Lego his-
Economics now slowing this year Iran on Satur- castles would ever appeal to have an billion last from “Ghostbusters” and the not years. Lego isn’t affiliated tory: 6,987 was the box num-
sees global activ- day launched anyone besides children. imaginary year. Lego Ornithopter from “Dune.” with the event. ber of a Lego Blacktron set
to 2.9%—a 0.2
ity slowing this more than 200 Over time it noticed that nephew or Icons was Adults also gravitate toward A Vietnam War tableau, a from the 1980s to which the
year to 2.9%—a percentage point ballistic and many former child fans carried n i e c e one of its art, architecture, nature and recreation of the doomed Pickards’ creation pays hom-
0.2 percentage upgrade from Dec cruise missiles their love of Lego into adult- they’d buy for,” said Gene- star properties in 2023, the nostalgia, said Capa Cruz. space colony from the movie age.)
point upgrade and attack drones hood, becoming what the vieve Capa Cruz, Lego’s head company said last month. Lego recently added working “Aliens” and wearable Viking Lacking space at home, they
from December in against Israel in a company calls AFOLs, or adult of adult products. The new Lego’s growth did slow last replicas of an old Pac-Man armor were among the builds worked in their local church.
what it terms a “great escape”— dramatic escalation of tensions. fans of Lego, while other packaging, which set the 18+ year, though, with sales rising arcade game and a Polaroid on display. Pickard’s real passion is histor-
but still “way below” the pre- Both conflicts, swirling grown-ups were drawn in by products apart from boxes 2%—its weakest performance camera to its 18+ range, for Edmondson, the graphic ical scenes, such as his Battle of
pandemic pace. around some of the world’s big- collaborations with franchises meant for kids with its in years—amid a slump in example, alongside a 2,316- designer, moved from Sacra- Thermopylae, which turned
IMF chief Kristalina Georgi- gest petroleum suppliers, are such as Star Wars. Eventually grown-up appearance, helped global toy sales. That makes its brick rendition of Van Gogh’s mento, Calif., to Edinburgh heads in Lego circles several
eva has signalled that the fund pushing energy prices higher, a the company realized that overcome that obstacle, she adult customers even more painting “The Starry Night” last year to join his Scottish years ago, he said.
will also slightly raise its fore- worrisome sign for inflation adults were a potentially lucra- said. valuable, while raising pres- and a $160 replica of Japan’s fiancée, Catherine Rankin, a Pickard welcomed Lego’s
cast, to be released Tuesday, fighters. tive audience in their own The timing couldn’t have sure on the company to keep Himeji Castle. structural engineer, after they newfound respectability as a
from the current 3.1% while The IMF has sounded the right, prompting a shift in been better. The 18+ line the free-spending grown-up “When it comes to adults it’s met through the online Lego grown-up hobby, but said its
warning that the world is head- alarm over the geopolitically- strategy. landed just as millions of peo- cohort engaged. also about the displayability: It community. Together they popularity had complicated
ing for “a sluggish and disap- driven fragmentation of the “We decided to focus on ple, trapped at home by Cov- The toy’s popularity among needs to look good on your worked for 14 days straight life.
pointing decade.” global economy. The divide is adults because we realized that id-19 lockdowns, were looking adults has been aided by reali- shelf,” Capa Cruz said. creating a medieval castle for “Everything is now harder
Against that backdrop, broadly between the US and we had a much bigger oppor- for a hobby to alleviate the ty-TV show “Lego Masters,” a The cost gives some cus- the Bricktastic show. to get and it’s more expensive,”
investors will closely watch key European Union on one side tunity than we were tapping boredom. Sales of adult sets Lego-backed series in which tomers pause; they ask, The couple have freelance he said. “People used to just
attendees at the meetings. and China and Russia on the into,” said Julia Goldin , Lego’s boomed. contestants tackle building “Should I buy this [$650] day jobs that enable them to give me bin bags full of old
Scheduled speakers include other—with the Global South chief product and marketing By 2021 grown-ups buying challenges, and 2014’s “The Star Wars Venator for focus entirely on Lego for long Lego, now they want to know
Federal Reserve chairman Jer- the main battleground for busi- officer. for themselves constituted a Lego Movie.” Both have myself?” said Capa Cruz. But stretches when the mood takes how much it’s worth.”
ome Powell, US Treasury sec- ness and influence. Lego already produced fifth of Lego’s sales, up from helped normalize Lego as an as adult Lego becomes more them. They spend about $250 © 2024 DOW JONES & CO. INC.
08 MoNDAy, 15 April 2024
New Delhi GLOBAL LIVEMINT.COM

The threat in Disney’s backyard

Smaller rival Universal is expanding its parks, mobilizing Harry Potter, Super Mario and an army of Minions to steal away Disney World visitors
Jacob Passy & Robbie Whelan the company’s namesake founder, admis- firm.
[email protected] sion cost $3.50 for an adult. Visitors could “It’s very difficult to take an intellectual
roam Magic Kingdom—the only theme property or movie and say, ‘Well, this

W
hen the Universal Epic park on the property at the time—and take movie just suddenly became a surprise hit
Universe theme park in dozens of free attractions and perform- and now this ride needs to be there tomor-
opens next year, it will ances, but had to purchase separate ticket row,’ ” Sotto said.
add 750 acres popu- books to get on rides like Jungle Cruise Revenue from the division has repre-
lated by Harry Potter, and Haunted Mansion. sented 30% to 40% of Disney’s overall rev-
Donkey Kong and dragons to the com- As the resort expanded over the dec- enue for most of the past decade, but the
pany’s Central Florida resort. ades, filling more and more of the roughly division’s share of operating income has
It will also be an epic shot across Walt 40 square miles of land Disney owns near grown steadily, to 69% in fiscal 2023 from
Disney ’s bow. Orlando with hotels and new parks, visits 39% in 2018, making the business the dar-
Just 10 miles down Interstate 4 is Walt began to require more time and more ling of Disney and its most reliable driver
Disney World, the biggest part of Disney’s planning. Families began mapping out of profit growth.
most important profit engine, and the longer visits so that they could explore Iger holds a meeting every month or
stuff of dreams for tens of millions of visi- other parts of the Walt Disney World two to review major initiatives with Imag-
tors a year. Resort. ineers. He and D’Amaro, one of the execu-
To understand the stakes for both com- Disney’s last major addition in Florida tives on the shortlist of Iger’s potential
panies, consider this: A common vacation arrived in 2019, when it opened a new land successors as CEO, have delivered a clear
itinerary includes three or four days at at its Hollywood Studios theme park message at recent meetings that one per-
Disney World and one or two days at Uni- called Star Wars: Galaxy’s Edge, based on son in attendance described as: “Open the
versal. the popular science fiction franchise. doors and show me your new visions.”
If Universal can now persuade families Elsewhere in the U.S., Disney has made Fight for visitors
to spend one more day at its parks instead significant expansions, such as its Aveng- Over the past decade, Universal
of at Disney, it could nab hundreds of mil- ers Campus, added to the California Orlando Resort has added multiple hotels
lions of dollars in annual revenue. Adventure park in Anaheim, Calif., in that range from budget to luxury. This
Universal’s timing couldn’t be better. 2021. summer it will open a new section of the
It’s been five years since Disney opened a Guardians of the Galaxy: Cosmic Universal Studios Florida park based on
major expansion—or new land, in the Rewind, a hit roller coaster that opened in DreamWorks Animation’s films such as
company’s parlance—in Florida. Those 2022, simulates time travel by launching “Shrek” and “Trolls.”
years have coincided with multiple riders backward through a darkened solar In recent years, Universal has also
rounds of ticket-price increases, irking system while music from pop artists like added rides to its Florida theme parks
even some die-hard Disney fans. Blondie and Tears For Fears blares. based on the Despicable Me, Fast & Furi-
Over the past decade, Disney’s parks Tron Lightcycle / Run, a nearly ous and Jurassic World film franchises.
division has become more strategically 60-m.p.h. screamer of a coaster that “We’ve seen Universal become more of
important to the company, with profits evokes the retro-futurism of the 1980s a destination itself,” says Kari Dillon,
eclipsing those of the TV-networks divi- with neon lights and a synthesizer sound- owner of two travel agencies based in
sion, which includes ESPN, ABC and Dis- track, opened last year and is consistently Huntersville, N.C.: Marvelous Memories
ney Channel . mobbed by eager fans. A daily app-based Travels and Marvelous Mouse Travels.
Universal’s parent, Comcast , is mining waiting list for the coaster often maxes Disney’s last major addition in Florida in 2019 was a new land at Hollywood Studios theme park called Star Wars: Galaxy’s Edge. REUTERS “We do a ton of split stays as it is right now,
box-office hits like “Despicable Me” and out. where people are going down and spend-
“How to Train Your “By staggering these A Disney spokeswoman said fans have “Everybody saw the potential of doing each year to take his family to Walt Disney ing half their week at Disney and then tak-
Dragon” as it invests in major launches, we high expectations and the company is that level, that kind of project, and what it World. ing the other half and going down to Uni-
its parks. have been able to com- “always striving to deliver on those expec- could do for the company and for the The Holecheks usually tack on a brief versal.”
The company set mercially and opera- tations and in fact exceed them.” parks and the resorts,” said Mike West, stop at the nearby Universal Orlando Attendance at Universal’s Florida
itself up for success with a “foot on the gas” tionally optimize our new offerings over Political and legal skirmishes with Flor- who has previously worked at both Disney Resort. The family is forgoing this year’s theme parks has snowballed in the years
strategy early in the Covid-19 pandemic time, rather than having to do it all at ida Gov. Ron DeSantis over the last two and Universal designing theme-park trip to Disney World. When they travel to since they first opened in 1990. Islands of
that has meant it has fresh attractions to once,” Disney CEO Bob Iger said in April. years complicated announcing any big attractions. Orlando next year, they expect to spend Adventure attracted more than 11 million
offer as demand rebounds, Chief Financial The company plans to announce a raft expansions at Disney’s Florida parks. Quickly, Universal planned an expan- more days at Universal than at Disney for visitors in 2022, while Universal Studios
Officer Jason Armstrong said at a March of new attractions at its D23 fan event this Now, a legal truce reached last month sion of the Harry Potter attractions at the first time. had almost 10.8 million guests, according
investor conference. summer. When Disney has swung for the between Disney and the state “will actu- neighboring Universal Studios. The two A family of four visiting Disney World to data from the Themed Entertainment
If Universal flips enough families, it fences recently, it hasn’t always con- ally enable us to pursue the kinds of signif- areas are connected by a ride, inspired by for a five-day, four-night stay in mid-July Association and consulting firm Aecom.
could be a big blow to Disney’s most-prof- nected. icant investment in our Florida parks” that the magical Hogwarts Express train, that with Park Hopper tickets, a quick-service Disney’s Magic Kingdom, which had
itable division at a time when the com- Star Wars: Galactic Starcruiser, an fans want to see, Iger said at the company’s shuttles between the parks. To experience dining plan and a room in a moderate-tier more than 17 million visitors in 2022, has
pany is struggling to juggle other priori- ambitious interactive hotel experience April shareholder meeting. that ride and both Harry Potter areas in hotel would spend upward of $5,000, not long been the world’s most-visited theme
ties, including finding its next chief execu- that cost more than $350 million to build, Universal finds ‘Jaws’ the same day, visitors must purchase mul- counting the cost of souvenirs or add-ons park. But since the start of the Covid-19
tive, reinvigorating its movie studios and closed less than two years after opening in Universal’s theme-park roots stretch tipark tickets, which cost anywhere from such as the Genie+ line-skipping service. pandemic, attendance at Universal’s
making money in streaming. 2022. Disney said it would use what it back to the 1960s, when it was a movie stu- $174 to $234 for a one-day Shortening the Disney leg by Islands of Adventure park has surpassed
It is a classic case of the smaller rival tak- learned to guide decisions about future dio owned by MCA. adult ticket. If Universal can even a day would trim hun- that of Disney World’s other three Orlan-
ing on the industry leader. experiences. Disney last year announced Universal Pictures offered tours of its Other Potter attractions persuade people dreds of dollars from their do-area theme parks.
The Disney division that includes that it would spend $60 billion over a dec- studio lot in Hollywood in red-and-white include a ride through Hog- to spend at its spending at the company’s The new Universal park could lead Walt
theme parks—plus cruises, videogames ade to “turbocharge” growth at the divi- trams in an effort to increase profits. Orig- warts called Harry Potter parks instead of parks and resorts. Disney World attendance to decline by
and consumer products—posted $32.5 sion that includes theme parks and inally, the tour drove through back lot and the Forbidden Journey, The Imagineers about one million visitors in the two years
billion in sales for the fiscal year ending cruises, but did not say how much would areas, giving visitors a glimpse of movie plus several roller coasters,
Disney, it can nab Iger and Josh D’Amaro , spanning 2025 and 2026, according to a
Sept. 30. Universal’s parks division be spent on domestic parks. stars and live film sets. including Hagrid’s Magical millions of dollars who oversees the Disney new analysis from MoffettNathanson, and
brought in $8.95 billion in revenue last Earlier this month, the company pre- Over time, the tour grew more ambi- Creatures Motorbike Adven- in annual revenue division that includes theme boost overall attendance at Universal’s
year. viewed a planned expansion of the Magic tious. Massive permanent sets were built ture. parks, have told employees three parks in the area by more than eight
“Guests have told us they love our brand Kingdom park that’s about the size of Gal- to showcase special effects. Audio-ani- The theme park opening that the parks business is at a million.
of immersive storytelling, and that if we axy’s Edge. It has also begun work on a new matronic versions of the shark from next year is set to include a third Wizard- transition point. Craig Longhurst, who works in real-es-
gave them more of that, they’d give us section of Animal Kingdom in Orlando Steven Spielberg’s “Jaws” and King Kong ing World, a land called Super Nintendo It is coming out of a few years focused tate development and management in
more of their time,” a Universal spokes- called Tropical Americas, based on themes were installed to thrill guests. World and roller coasters like Starfall Rac- on maximizing how much visitors spend Winston-Salem, N.C., once a year typi-
person said. “We looked at that strategi- from the movie “Encanto” and the Indiana By the 1970s, MCA saw the success Dis- ers and the Donkey Kong-themed Mine each visit, or what it calls yield per visitor, cally takes his two sons, 15 and 10, each to
cally” and decided to build another park. Jones franchise. The company has not said ney had in exporting the Disneyland con- Cart Madness. by increasing ticket pricing and selling Walt Disney World individually. Lately,
Disney says it has been steadily offering when those areas will open. Most large cept to Florida and began planning a “Disney doesn’t have the shovels in the add-ons like line-skipping features. Now, he’s grown irritated at the rising cost of
new and refreshed attractions, pointing to expansions take years to complete. movie studio-themed park in the Sun- ground at this point to open anything that the company is ready to return to steady visiting the theme parks. The latest
a host of well-reviewed thrill rides and “Give us something more exciting— shine State. Universal Studios Florida might directly compete with Epic,” said rollouts of ambitious expansions, accord- “Moana” themed walk-through attraction
renovations that have recently added something brand new that can keep opened in 1990, a year after Disney Robert Niles , a former Disney employee ing to a manager in Disney’s parks divi- isn’t interesting enough to warrant a trip,
sheen to aging parks like Epcot. “Epic is bringing people back,” said Jenean Cris- opened a new park of its own, now known who once piloted rafts at the Tom Sawyer sion. he said.
Universal playing catch-up on a decade of citiello, a 32-year-old Disney fan from the as Hollywood Studios. Island attraction at Walt Disney World Devising new theme-park attractions “If they’re going to continue to charge
nonstop development at Walt Disney Chicago suburbs. She and her husband In 2007, Universal announced plans for and now runs the website Theme Park has historically been a multiyear process, these prices,” Longhurst said, “they’re
World,” a Disney spokesperson said. don’t have a trip planned to Disney this the Wizarding World of Harry Potter at its Insider . says Eddie Sotto, a former Imagineer, a going to have to invest in the parks and
Disney takes Orlando year in part because they weren’t eager to Universal Islands of Adventure theme park David Holechek, a 42-year-old father of member of the company’s elite team of develop some new attractions that get me
When Walt Disney World opened in experience rides and attractions they’d in Orlando. Attendance surged after the four in the Denver suburbs, owns a Disney theme-park designers, who now consults to part with my money.”
1971, almost five years after the death of already done dozens of times. Harry Potter-themed area opened in 2010. timeshare and spends thousands of dollars with theme parks through his own design ©2024 DOW JONES & CO. INC.

Two brothers, a big biotech bet and an $8 billion payout

Peter Rudegeair & strategy last year. A healthcare lage from a children’s non- around in 2022 when prose- each Seagen share. The firm
Jonathan D. Rockoff stock-picking index gained profit in 2014 and renovated it cutors investigated Seagen gave most of its haul back to
[email protected] 13.3% in 2023, according to into a single-family home. co-founder Clay Siegall for investors because it didn’t see
hedge-fund research firm Piv- Seagen, previously known domestic violence, allegations enough opportunities to
otalPath, outpacing the 7.6% as Seattle Genetics, went pub- which he denied. (Prosecutors deploy all that money at once,

A
two-decade bet on a rise in a broader industry lic a year after Baker Bros.’s declined to charge him.) Felix a person familiar with its
biotechnology com- index. Baker Bros.’s flagship founding. The company pio- assumed the role of board thinking said.
pany turned into a fund gained roughly 19% in neered a kind of next-genera- chairman upon Siegall’s resig- It is rare for a hedge fund
roughly $8 billion windfall for 2023, some of the people said. tion chemotherapy called nation. that isn’t winding down to vol-
investors in a New York hedge The Bakers, known for antibody drug conjugates, or By then, ADCs were becom- unteer to shrink itself so
fund earlier this year. being intensely private, are a ADCs. Chemotherapy patients ing one of the hottest new cat- much, said Jon Caplis, Pivotal-
Baker Bros. Advisors, a throwback to a leaner, free- usually endure brutal side egories in the cancer-drugs Path’s CEO.
hedge-fund firm run by broth- wheeling style of hedge-fund effects because the drug kills market. The drugs will Other recent examples
ers Felix and Julian Baker, had investing. While today’s most both cancer and account for $31 come from much larger firms:
in 2003 invested in Seagen, a sought-after hedge funds healthy cells. The Bakers are billion of the $375 Citadel distributed about $8.5
developer of next-generation divvy money up across battal- ADCs promised a a throwback billion market in billion to investors after a
cancer ions of trad- more targeted to a leaner, 2028, pharma- record 2022, and Viking
t r e a t - ers, Baker attack. freewheeling ceutical-market Global Investors gave back $8
ments. B r o s . In 2003, Baker research firm billion in 2017 .
style of
P f i z e r employed Bros. bought Evaluate has esti- Baker Bros.’s investors have
bought the company for $43 around 18 investment profes- around $16 mil- hedge-fund mated. included college endowments
billion last year. sionals to manage about $22 Hedge-fund firm Baker Bros. Advisors held a nearly 25% stake in Seagen and reaped about $10 lion of Seagen investing Felix was soon like those of Yale and Prince-
The firm held a nearly 25% billion in assets at the end of billion in proceeds when the acquisition closed in December. REUTERS preferred stock, leading negotia- ton and pension funds like the
stake in Seagen and reaped 2023, regulatory filings show. which helped tions to sell Sea- Teacher Retirement System of
about $10 billion in proceeds Other hedge-fund chiefs 2022 and down about 25% in of two professors. Early in tan headquarters abuts the fund clinical trials. That stock gen, a person familiar with the Texas.
when the acquisition closed in minimize risk by avoiding 2021, the people said. The their careers, Felix briefly High Line aerial park. Many was convertible into 10 times matter said. Discussions with At a gathering after the deal
December. It gave back most concentrated bets. At Baker share price of Kodiak Sciences, attended medical school and employees relocate to a satel- as many common shares at a Merck about a sale in 2022 closed, Felix joked with Bourla
of that to its investors earlier Bros., Seagen accounted for a maker of eye drugs in which earned a Ph.D. in immunol- lite office in the Hamptons price of $2.50 apiece. Felix broke down. Pfizer Chief Exec- about receiving a call from an
this year, people familiar with about half of the value of its the Bakers have a sizable stake, ogy, while Julian made pri- during the summer. joined the company’s board. utive Albert Bourla sent Felix a Ivy League university presi-
the matter said, in what was publicly disclosed stockhold- went from $10 at its 2018 IPO vate-equity investments at Each of the Baker brothers The firm loaded up on Seagen note asking to talk after the J.P. dent who thanked him for
one of the industry’s largest- ings at the end of September. to a record high of $164 in Credit Suisse. They teamed up are estimated to have net stock in the ensuing years, at Morgan Healthcare Confer- identifying and investing in
ever returns of capital. That approach often comes 2021. It has recently been trad- in 1994 to make biotech worths of $2.8 billion, accord- one point owning almost one- ence in January 2023. A few Seagen, a person familiar with
Big-ticket takeovers and sci- with volatility, especially in a ing under $5. investments for members of ing to Forbes. Felix, who is on third of the company. months later, the companies the matter said.
entific advances like gene-ed- boom-or-bust sector like bio- A 20-year bet the Tisch family and launched Stanford’s board of trustees, Baker Bros. stuck with Sea- unveiled their $43 billion deal. “Glad to be of help,” Bourla
iting helped make biotech tech. Baker Bros.’s flagship Felix and Julian Baker, both Baker Bros. in 2000. purchased a $45 million build- gen as it worked out the ADC Investors including Baker said.
investing a hot hedge-fund fund was down about 19% in in their mid-50s, are the sons Today, their firm’s Manhat- ing in Manhattan’s West Vil- technology kinks. It also stuck Bros. received $229 in cash for ©2024 DOW JONES & CO. INC.
LIVEMINT.COM NEWS WRAP MoNDAy, 15 April 2024
New Delhi 09

NEWS
₹60K cr
THE AMOUNT the road transport and
₹13,347 cr
THE VALUE of equities bought by foreign
$61,842
THE PRICE of Bitcoin at 21:00 GMT
$41,509
The average annual wages in Japan in
6,528
THE NUMBER of bottles of BP
IN highways ministry plans to raise in FY25, a portfolio investors (FPI) in the Indian on 13 April, down 7.9% after news of 2022, compared with Australia’s $59,408, medication Glenmark Pharmaceuticals is
NUMBERS large portion of which will come via toll-
operate-transfer (TOT) monetisation
market so far in the current fiscal, as they
continued their buying streak
Iran’s retaliatory drone strikes on
Israel broke out
$77,463 in the US, as per Organization for
Economic Cooperation and Development
pulling back from the US market due to
issues with dissolution specifications

HOWINDIALIVES.COM

New advisory for NEW YEAR CELEBRATIONS India added 18 GW

Indians in Israel green power in FY24

T I
he Indian mission in Israel on Sunday ndia has added a record renewable energy
issued a fresh “important advisory” for its capacity of 18.48 gigawatt (GW) in FY24,
nationals after attacks on the Jewish state which is over 21% higher than 15.27 GW a
by Iran with hundreds of projectiles, advising year ago, according to the latest data of the
them to stay calm and adhere to safety ministry of new & renewable energy.
protocols. However, industry experts said there is a
In an unprecedented attack, Iran and its need to add at least 50 GW of renewable
proxies launched 330 missiles and drones on energy capacity annually for the next six years
Israel on Saturday in retaliation to an alleged to meet the ambitious target of 500 GW of
attack by Israel on a diplomatic installation of renewables by 2030.
the Islamic Republic in Damascus in which According to the data, India’s installed
several people were killed, including two top renewable energy capacity is 143.64 GW as of
commanders. 31 March 2024, excluding 47 GW of large
“In light of the recent events in the region, all hydropower capacity (each plant is more than
Indian nationals in Israel are advised to stay 25 GW or above).
calm and adhere to the safety protocols issued They pointed out that renewable energy
by the local authorities,” the Indian mission capacity stood at around 190 GW, including
said in the “important advisory” advisory large hydro projects, and therefore, India
posted on its social media handles. needs to add 310 GW in the next six years or at
It also urged Indian nationals to register with an average of 50 GW per annum. PTI
the embassy at a given link. PTI

Devotees offer prayers at the Dakshineswar Kali Temple on the occasion of Bengali New Year, in Kolkata on Sunday. PTI

The ministry intends to safeguard people against

BJP pledges UCC, four bullet Last year, LIC faced intense scrutiny over its
decision to invest in the Adani group. MINT
cyber risks.

Finance ministry
MINT

trains in election manifesto LIC’s bets on Adani

fetch 59% in FY24
for enhanced KYC
L
IC, the state-owned insurance behemoth,

I
n a bid to check incidence of BoB World app has seen a 59% rise in value of its
scam and other such financial frauds, the Ayushman Bharat cover for all above 70, one nation-one election among key promises investments in Adani group companies in
finance ministry makes a case for an enhanced FY24 after the conglomerate made a smart
KYC procedure and extensive due diligence by recovery since being hammered by a damning
banks and financial institutions for onboarding Mansi Jaswal & Gulam Jeelani has now taken the 'sankalp' (resolve) that every indi- be completed soon, and that the BJP would short seller report.
merchants to safeguard customers against cyber nEW DELHI vidual above 70 years of age will be brought within implement at least three more bullet train pro- The value of LIC’s investment in seven Adani
risks, people aware about the matter said. the purview of Ayushman Bharat Yojana,” the prime jects covering east, north and south India if voted group companies has soared from ₹38,471 crore

P
Appropriate due diligence of merchants and rime Minister Narendra Modi unveiled minister said. Senior BJP leaders were also present back to power. The manifesto also mentioned as on 31 March 2023 to ₹61,210 crore on 31
business correspondents (BCs) who offer the Bharatiya Janata Party’s (BJP) mani- at the function at party headquarters in New Delhi. greener manufacturing in sectors such as steel, March 2024, registering an increase of ₹22,378
banking services in rural and remote areas is festo—Sankalp Patra—for the upcom- The BJP also promised to bring in a Uniform cement, metals, and engineering goods, expand- crore, according to stock exchange data.
necessary not only to check frauds but also to ing Lok Sabha elections on Sunday, Civil Code or UCC if ing domestic Last year, LIC faced intense scrutiny over its
fortify the financial ecosystem, people said. coinciding with the birth anniversary of it returns to power. defence manufac- decision to invest in the Adani group amidst a
According to them, there is a need to BR Ambedkar, the architect of the Indian Consti- The UCC is perhaps Modi said the BJP would empower turing and exports, political slugfest after allegations of stock
strengthen data security and data protection at tution. After unveiling the manifesto, the prime the only major the youth, women, poor people and and positioning manipulation fuelled by Hindenburg report.
the level of merchants and BCs as chances of minister said it would empower the youth, promise in previous
compromise are higher at that level. women, the poor and farmers and help the coun- manifestos that the farmers and help the country in its India as a global rail-
way, shipping and
Adani group denied any wrong doing.
Adani group’s stocks, which at lowest point
Therefore, people said, RBI may advice banks try in its journey towards Viksit Bharat (devel- party has not ful- journey towards ‘Viksit Bharat’ aviation production took a beating of about $150 billion, have staged
and financial institutions to review the oped India). filled yet. hub. a remarkable comeback, fuelled by robust profit
concentration of business correspondents in The manifesto, with the tagline ‘Modi Ki Guar- Congress leader India’s Olympics growth across its diverse businesses. PTI
cyber fraud hotspots and their onboarding, antee 2024’, pledges to bring all citizens aged 70 Rahul Gandhi said in a social media post that the bid in 2036, implementation of National Education
blocking of micro ATMs found to be involved in and above under the Ayushman Bharat scheme, BJP manifesto did not speak about unemployment, Policy, ‘One Nation One Election’ and a law against
frauds. This was one of the suggestions made at which provides free treatment up to ₹5 lakh. while his colleague Jairam Ramesh criticized it as paper leaks also featured in the manifesto.
an inter-ministerial meeting held recently with
the objective of furthering cyber security and
“The biggest concern of the elderly is how will
they afford treatment for their ailments. This con-
jumla patra (empty promise).
On infrastructure creation, Modi said the
[email protected]
Subhash Narayan, Gireesh Chandra Prasad and
WTicabs to induct
checking financial fraud, the people said. PTI cern is even more serious for the middle class. BJP Ahmedabad-Mumbai bullet train project would Dhirendra Kumar contributed to this story.
1,000 EVs this fiscal

W
ise Travel India Ltd, a B2B transport
Demand for private jets, choppers jumps 40% ahead of LS polls Trai’s views sought solutions provider, plans to add 1,000
electric vehicles to its fleet this year as
on spectrum prices part of its sustainable mobility drive, according

W
ith politicians and political party representatives criss-crossing to its founder and CEO Ashok Vashist. The
the country for the Lok Sabha election, the demand for chartered company is expanding in India’s tier II cities like

T
planes and helicopters has jumped up to 40%, and the operators he department of telecommunications Chandigarh, Jaipur, Coimbatore and Indore,
are expected to net 15-20% more earnings, according to industry (DoT) is expected to approach the and looking to have an international presence in
experts. Telecom Regulatory Authority of India Saudi Arabia and far east countries.
The hourly rates for chartered services have also spiked. The charge is (Trai) this month to seek the regulator’s views “This year, our main target is on
about ₹4.5 -5.25 lakh for an aircraft and around ₹1.5- 1.7 lakh for a twin engine on method and pricing for allocation of sustainability, where we are inducting vehicles,
helicopter, they said. spectrum and scope of licences to be issued for which are electric and bio-CNG...We already
While the demand has surged compared to the normal times and previous satcom services, according to people with have more than 300 cars, which are electric.
election years, there is lesser number of fixed wing aircraft and helicopters direct knowledge about the development. This year, we will be inducting more than 1,000
available. Some of the operators are looking to take planes and helicopters on Trai had floated a consultation paper on electric cars and electric buses,” Vashist told
wet lease. “assignment of spectrum for space-based PTI. The company, which operates under the
“There is an increase in demand for helicopters and it is up to 25% more in communication services” on 6 April 2023 but WTicabs brand, has also third-party and
the election period compared to the normal period. The supply is less returned the reference back to DoT after individual-owned vehicles in its fleet. For
compared to the demand,” Rotary Wing Society of India (RWSI) president announcement of new Telecommunication electric vehicles, he said most of these would be
(Western Region) captain Uday Gelli told PTI. PTI Private jet operators are expected to net 15-20% more earnings. REUTERS Act. PTI primarily company-owned. PTI

Telcos may report flattish revenues in January-March quarter

Gulveen Aulakh the upcoming two quarters sequentially to ₹39,300 crore, help Indus Towers, as it will possibility of 15-20%,” BofA one of the factors of upside to
[email protected] are likely to see upsides for with addition of 3.9 million get payments and pending Securities said. Carriers raised the stock in the near and long
nEW DELHI the sector, as they expect tar- subscribers and 1.6% dues from the carrier. Ana- headline tariffs by 20%– 40% term.
iff hikes by up to 20% after the improvement in Arpu, owing lysts at BofA suggested that back in December 2019, the “It’s rather an attempt by

I
ndian telecom operators general elections end in June, to premiumization and addi- Vodafone Idea may also clear first after Jio launched its ser- the operators to improve
Reliance Jio, Bharti Airtel spectrum auctions in the tion in broadband subscrib- some backlog payments. vices in 2016 and made voice Arpu that will in return help
and Vodafone Idea are same month, and Vodafone ers. Ebitda (earnings before Indus’ revenue a free service. recover the investments made
expected to report largely Idea’s massive fundraise, interest, taxes, depreciation, growth in Janu- Analysts and This was fol- on 5G,” said Faizal Kawoosa,
steady revenues for the quar- including the ₹18,000 crore- and amortization) margin ary-March is brokerages said lowed by another founder of research firm
ter ended 31 March, but the follow on offer this week. may improve 71 basis points expected to be the upcoming two hike, this time of TechArc. He noted that telcos
first half of the current fiscal “We expect a stable set of sequentially to 53%. around 6% quarters are 20%, in Decem- have already invested billions
year will see them put up a numbers from India telcos, For Vodafone Idea that will sequentially, ber 2021. in 5G and were yet to reap
likely to see
better show, buoyed by likely with 0-3% qoq (quarter-on- launch its FPO on 18 April to even as tenancy “We expect benefits due to the absence of
tariff hikes. quarter) improvement in cel- raise ₹18,000 crore from additions get upsides for the the industry to relevant use cases that con-
Indus Towers, a leading tel- lular revenues and largely retail as well as institutional marginally telecom sector take 15%–17% tar- sumers as well as enterprises
ecom infrastructure provider, flattish EBITDA margins,” Analysts and brokerages tracking the sector expect tariff hikes of investors, analysts expect a slower and ten- iff hike post the could pick up and pay for.
is expected to report rela- said analysts at BofA Securi- up to 20% after the general election ends in June. MINT 1.6% drop in revenue sequen- ancy ratio - the elections. The “The investment burden has
tively better numbers, ties in a note. tially, a 2-million subscriber average number of tenants or previous hikes have provided got shouldered on the opera-
boosted likely by part-pay- Reliance Jio is expected to 11.5 million net additions. Arpu is considered as a key loss and flat ARPUs as well as operators using a tower - stays an Arpu uplift of ₹30 and ₹36 tors. They now have every
ment of its dues by Vodafone keep is subscriber-addition However, average revenue metric for profitability of a Ebitda margin. The funds that at 1.71x. over four quarters,” analysts right to take a pause and
Idea. momentum going and to be per user, or Arpu, for the telecom operator. will be channeled towards “Tariff hikes are likely to at Antique Stock Broking said emphasize on recovering the
Analysts and brokerages better than in the quarter March quarter is expected to Airtel’s consolidated reve- launching 5G service and happen in the next few in a note initiating coverage investments and make prof-
tracking the sector said that ended December 2023, with be flat on a sequential basis. nue is expected to rise 3.8% enhancing 4G coverage will months post elections, we see on Airtel, giving tariff hike as its,” he added.
10 MoNDAy, 15 April 2024
New Delhi LONG STORY LIVEMINT.COM

WHAT GOLD’S RECORD

RUN IS TELLING INVESTORS
Historically, shining gold prices have almost always been accompanied by grim news. Will this time be different?

Abhishek Mukherjee
mint
[email protected]
SHORT
NeW delhi STORY
“Governments lie; bankers lie; even
auditors sometimes lie. Gold tells the WhAt
truth.”
–William Rees Mogg After a subdued start to the

A
t the end of the Maha- year, gold prices started
bharata war, Yudhish- gathering steam in early March.
thira, the leader of the As of 9 April, gold had made
Pandavas, is over- fresh lifetime highs for eight
whelmed with guilt and straight sessions.
grief over the massacre of his relatives.
Looking to boost his flagging spirits,
Lord Krishna and sage Vyasa advise Why
him to perform the Ashvamedha
Yagna—an extravagant and elaborate Some attribute the rally to
ceremony meant to demonstrate the expectations of interest rate cuts
suzerainty of Vedic kings. by US Fed, which would make
However, Yudhishthira confides the non-yielding yellow metal
to Krishna that the state treasury is more attractive. Others point to
empty because of the war. rising geopolitical tensions.
Krishna then offers a suggestion
which would gladden the heart
of any multi-asset fund man- NoW
ager—‘fill your coffers with
gold (left behind by a king in All central banks are stocking
the Himalayas) and achieve up on gold. When central banks
your goals’. buy gold, it is usually a carefully
If there is one asset class considered move. Do they know
which carries the weight of something the rest of the
antiquity on its shoulders, whose market does not?
desire is embedded in the very soul
of human civilization, and which
even today serves as a bulwark against the yellow metal—the most among
the vicissitudes of fate, it is gold. global central banks, according to
While stocks, bonds and other assets the World Gold Council.
flutter in and out of fashion, the almighty China’s purchases last year were
gold’s track record as the flagbearer of about a quarter of the 1,037 tonnes
wealth stretches for over 5,000 years. The bought by all the world’s central
ultimate barometer of human progress banks. In January and February this
and prosperity. year alone, the PBC increased its gold
Which is why the most prominent reserves by 22 tonnes. It has been
investors and institutions around the adding to its gold reserves for the
world sit up and pay attention when the past 17 months. The Chinese central
bullion market makes unusual moves. bank’s total gold holdings stand at
about 2,257 tonnes.
Shining brighT What explains Beijing’s love for

A fter a relatively subdued start to the

year, gold prices started gathering
steam in early March. By April, the pre-
bullion?
Experts put this down to its battle
of supremacy with the US and the
cious metal had breached the $2,300 per broad trend of de-dollarization.
ounce mark for the first time ever, cap- China, like most countries, is heav-
ping a series of record-shattering moves. ily dependent on the US dollar for
As of 9 April, gold had made fresh life- global trade. The greenback is the
time highs for eight straight sessions. world’s reserve currency and holds a
Suddenly, a global asset worth $12 virtual monopoly in the global finan-
trillion was behaving like a jumpy cial architecture. However, as the cov-
small-cap stock. id-19 crisis and Russia-Ukraine war
The financial cognoscenti scram- showed, Washington does not shy
bled to provide answers. away from weaponizing the dollar to
Some commentators attributed the sanction countries and maintain its
rally to expectations of interest rate hegemony.
cuts by the US Federal Reserve, Beijing, which has over the dec-
which would make the non-yielding ades built huge forex reserves in
yellow metal relatively more attract- dollars, is now seeking to diversify
ive. its holdings and insulate its financial
Others pointed to rising geopoliti- sector.
cal tensions, which have always “China is the largest producer of
spurred demand for the safe haven gold in the world, but its central bank
asset. But none of these offer a credi- has still been at the forefront of a
ble explanation for the timing or surge in purchases of the precious
intensity of the upmove. metal on the international market
The global geopolitical tempera- since past 17 consecutive months as it
ture has been feverish for a long seeks to reduce its reliance on the dol-
time now. As for the Fed’s mone- lar and diversify its holdings in
tary policy, rate cut projections reserves,” AnandRathi’s Mathur said.
have actually been scaled back “Its gold rush could also be an
over the past few months due to attempt to shore up its fiscal position
still-too-hot inflation. with a stable and highly saleable asset
Retail participation in the rally as bond markets have suffered since
too has been absent. Global gold 2022,” he added.
exchange-traded funds (ETFs)
saw outflows for nine consecutive FlaShing red?
months till February, as per the
World Gold Council. In 2024 alone,
the outflows have been to the tune of TARUN KUMAR SAHU/MINT
T he current trend of gold buying is
not limited to China. All central
banks are stocking up on this asset.
$5.7 billion, with the US and Europe lead- Prior to 2022, there wasn’t a single
ing the pack. year when global central banks cumula-
“I think it’s some sort of a new playbook tively bought 1,000 tonnes of gold. But in
which we are seeing in gold. Real interest 2022 and 2023, central bank purchases
rates are very high and yet gold is soaring. stood at 1,081 tonnes and 1,037 tonnes,
We also don’t see too much investor metals like silver as well as global equities ties in of course with anticipation of falling respectively.
demand for the metal, especially from the and even cryptocurrencies are marching
ALL THAT SHINES THE BIG WHALES interest rates. Those arguments apply When central banks buy gold, it is usu-
western world,” Ronald-Peter Stöferle, to record highs in this ‘everything rally’. Gold is at an all-time high despite lack of Central banks’ gold purchases are at both to equities and to gold,” Rhona ally a carefully considered strategic move.
managing partner and fund manager at Gold traditionally has an inverse rela- retail participation lifetime highs O’Connell, head of market analysis (EMEA They don’t buy gold for short-term trad-
asset management firm Incrementum AG, tionship with stocks. International Gold (in $/Ounce) Central bank net purchase (in tonnes) & Asia) at American financial services firm ing or profit-booking. It is either to safe-
told Mint on phone from Liechtenstein. Investors swarm to the precious metal 2,500 1,200 StoneX, told Mint. guard their currencies, diversify their
Then what’s driving the rally? during times of turbulence as a sure-shot 2,398.34 Which means the gush of liquidity reserves or hedge geopolitical risks.
“Chinese demand has been very strong, way to protect their wealth, while equities 2,300 sloshing around in the global financial Sometimes all of the above.
900
not only from the central bank...the Peo- are the preferred bet when optimism runs system is distorting some time-honoured This is what is making many market
2,100
ple’s Bank of China is buying like high over the trajectory of economic financial correlations, with even a strong watchers nervous.
600
crazy...but also from private investors growth and corporate profits. dollar not deterring the gold rally. Does the scale of gold buying indicate
1,900
because the Chinese real estate sector is For instance, gold shed more than 20% But no discussion on market distortions central banks are not quite gung-ho about
struggling. So many Chinese investors are of its value in dollar terms during the 300 is complete without addressing the pro- the future? Do they know something the
1,700
flocking to gold,” he said. 1980s and the 1990s, which were two rag- verbial 800-pound gorilla in the room. rest of the market does not? Remember,
1,732.76
Rest of Asian demand too is holding up ing bull market periods for equities. 0
central banks are the most sophisticated
1,500
well. In fact, China and India are responsible However, while the S&P500 declined 12 Apr 2021 12 Apr 2024
2015 2017 2019 2021 2023 ChineSe CheCkerS institutions in the global financial land-

I
2016 2018 2020 2022
for 50% of gold demand, while overall, the 9% over the first decade of 2000s following Source: Bloomberg Source: World Gold Council
t is remarkable how much impact a sin- scape.
emerging markets account for two-thirds. the dotcom bubble burst and the 2008-09 gle country has on multiple global “There is a rising risk regarding war.
“All in all, it’s a very broad bull mar- financial crisis, gold vaulted by 275%. SATISH KUMAR/MINT markets. If you are an analyst tracking New ‘Iron Curtains’ are being built unfor-
ket...not only in US dollars, gold is at all- So, what explains the current synchro- anything from copper, crude oil, coal, tunately. The gold price is perhaps also
time highs in almost every currency,” he nous liftoff? commodities & currencies, AnandRathi Global experts too say gold and equities iron ore and soybeans to lithium, steel or signalling that the next wave of inflation is
said, adding the rally still has legs, though “One reason for these asset classes mov- Shares and Stock Brokers. moving in conjunction is a central bank- specialty chemicals, you have to keep an starting,” Incrementum AG’s Stöferle said.
a bit of profit-taking cannot be ruled out. ing in tandem could be the emergence of He added that the unprecedented mon- triggered phenomenon. eye on China. Gold is possibly a more accurate ‘fear
high frequency trading, in line with the etary stimulus following the covid-19 crisis “We can put this down to a lot of liquid- The same holds true for bullion. gauge’ than VIX—the Chicago Board
Tangled TieS increasing integration of financial mar- has expanded the demand base for assets, ity looking for a home. Equities benefiting The People’s Bank of China (PBC) has Options Exchange’s CBOE Volatility

W hat is confounding many market

watchers is how other precious
kets strengthening correlations between
them,” said Naveen Mathur, director—
driving investors and fund managers
towards gold and equities at the same time.
from US economic resilience and antici-
pation of improvements in Europe, which
been buying gold with a religious fervour.
In 2023, PBC bought 225 metric tonnes of TURN TO PAGE 11
LIVEMINT.COM MINT MONEY MoNDAy, 15 April 2024
NeW Delhi 11

Why Samir Arora of Helios Capital POWER

POINT
is betting on travel and PSU stocks D E E PA K S O O D

We welcome your views and comments at

[email protected]

INVESTING AND THE

The Helios Capital founder says he has high hopes of the Union Budget that will be presented after the elections
ROLE OF LIQUIDITY,
Jash Kriplani
[email protected]
WHAT'S YOUR DO YOU HAVE
m GuRu PORtFOliO
A MINT SERIES
RISK AND RETURN
1 9

S
amir Arora, founder and ASSET MIX? A SEPARATE
CONTINGENCY

S
fund manager of portfolio Gold Debt might try that again at some point in hould we invest now? Or should we wait for the market cor-
FUND?
management service (PMS) time,” he says. rection? Can we make target returns in such a high market?
5
firm Helios Capital Manage- 10  No. All my investments The government’s efforts at BPCL’s Should we buy more to lower the average price? Can we
ment has often favoured are sufficiently liquid and privatization had stalled amid con- invest in such a volatile market and earn reasonable returns?
three big investment themes—finan- in % 45 can be used as and when cerns on fuel pricing and a global push These, and other related questions, often delay the investment
40 needed.
cials, consumptions and information towards green and renewable fuels decisions of people. Investors tend to lose money in both scenar-
technology (IT). But now, he is slightly after Russia-Ukraine conflict started in ios a) if they don’t invest, they miss the market beta and inflation
tweaking his bets on these sectors. Indian Global 2022. impact b) if they invest in a wrong product, they might earn less
A bulk of Arora’s own equity invest- equity equity 10 DO YOU HAVE
HEALTH Indian markets income or suffer income and capital loss or both (in some cases).
ments have been made through INSURANCE? Arora says he is highly bullish on No matter how much experience you have in managing
Helios’ funds. On the consumption WHAT'S YOUR the upcoming full Union Budget that money, you can still go wrong in multiple ways. Sticking to one
side, he has turned cautious on tradi- 2 PORTFOLIO'S  Yes, Helios' provides
will be presented by the new govern- style of investing or having a biased view on a particular sector/
WEIGHTED group health cover for all
tional consumption themes such as its employees, which is ment post the Lok Sabha elections. stock or not reviewing and rebalancing the portfolio at regular
consumer durables and consumer sta- AVERAGE RETURNS? “The government wants to cut fiscal intervals can lead to serious underperformance of the portfolio.
SAMIR ARORA reasonable from
ple. Instead, he has now built up posi-  About 37% in dollar ffounder and fund manager, Singapore standards. deficit to about 4.5% by FY26, which So, what are the key factors that one should look at while invest-
tions on a consumption sub-theme – terms. Helios Capital Management looks tough, but there will be efforts, at ing? Investing money is a crucial financial decision that can
travel. “Indian consumers want to least directionally, to reduce it. Prime greatly impact one’s financial health and future. Ideally, investors
spend more on experiences. We have IN WHICH FORM Minister Narendra Modi has talked should focus on three key factors of investing—risk, liquidity and
3 HOW MUCH OF 11 DO YOU HAVE
hotel stocks, train food catering stock, YOUR EQUITY WHAT STRATEGY WHAT'S YOUR about a transformational budget. So, if return.
airline stocks and even a ticket-book- INVESTMENTS ARE 5 WORKED FOR YOU 7 OUTLOOK ON
YOUR GOLD
you want to be transformational, while The first factor is risk. How likely you are going to get the
INVESTMENTS?
ing stock in our portfolios,” he says. THROUGH OWN IN THE PAST YEAR? INDIAN MARKETS? also keeping fiscal prudence, it can returns that you expect over the investment tenure. Different
Arora, who has largely been cau- PMS FUNDS?  So, part of it is physical only be done by making large PSU types of investments carry different levels of risk, with higher risk
 Largely, sticking to  We are very bullish on gold kept in a safe and
tious on PSUs (public sector units), has  Global investments equities and not upcoming Union Budget. part is in gold currency divestments,” Arora says. investments typically offering the potential for higher returns.
now added more of these state-run are 100% through our allocating too much on Only caveat is that equity (XAU). “There is only one caveat with It is important to assess your risk tolerance and choose invest-
companies in the fund’s portfolio. own fund. In India, 95% non-India and non-US taxation should not get respect to budget and i.e. the govern- ments that align with your financial goals and comfort level.
is through our own fund. markets. amended.
Thus, last year, Helios’ Indian fund There are some legacy
ment should not review equity taxa- Diversifying your portfolio can help largely mitigate risk.
bought stocks of oil marketing compa-  We are almost zero HOW DO YOU tion because there is always talk of The second factor is liquidity, which refers to how easily and
stock holdings of mine. weight on Indian IT now 12 KEEP FIT?
nies Hindustan Petroleum Corpora- STOCKS THAT in our Indian fund.
rationalization of taxes across asset quickly you can convert your investment into cash without
tion (HPCL) and Bharat Petroleum 6 STOOD OUT FOR  Read this book classes. “Equity and debt should not impacting its value. Investments like stocks and bonds are usually
ANY CHANGES IN
Corporation (BPCL). “These oil & gas 4 YOUR SECTORAL
YOU IN THE PAST
WHAT'S YOUR
Outlive, which has have the same tax rates. This is considered liquid because they can be easily bought or sold on
stocks now account for 7-8% of our YEAR? 8 been a great motivator. because when it comes to equities, the market. However, some invest-
BETS? GLOBAL OUTLOOK? I walk 6,000 steps in
Indian funds,” Arora said during an
 We are playing  In Indian fund: Food  The US technology total to and fro from
dividends are distributed among You need to ments, such as real estate or certain
interaction with Mint for the Guru delivery platform my gym. shareholders from post-tax profits of strike a balance types of securities, may have lower
consumption now stocks did quite well for
Portfolio series. In this series, leaders through travel stocks. Zomato performed  In gym, I do the company, whereas in the case of liquidity and may take longer to con-
in the financial services industry share We have also added really well in past year
our global fund. Expect the
debt, the company deducts the cost of between risk vert into cash. It is important to con-
rally to continue as global cross-trainer. Also, I
how they are handling their finances couple of oil & gas PSU  In global fund: AI concerns have eased and play tennis over interest from its profit and loss (P&L) and return that sider your liquidity needs and ensure
and investments. stocks. Oil & Gas is now chipmaker Nvidia did interest rates are likely to weekends. Have cut statement before paying interest to aligns with your that you have access to cash to meet
7-8% of Indian PMS fund. exceedingly well. trend downwards. sugar.
Asset mix bondholders,” he says. financial goals emergencies or other expenses.
Equities form a major chunk of Each investor has their own preferences and risk appetite, do your own research before investing. Mint does not independently verify non-public data
Global play The third is return, which refers to
Arora’s asset allocation, about 85% of reported by interviewees. Helios’ global fund’s peak cash the profit or gain you can make from
his portfolio. Of the remaining, 10% is deployment was 22% but that was your investment. Higher risk investments typically offer the
PRANAY BHARDWAJ/MINT
invested in gold and the remaining 5% is done last year and “Now, we just have potential for higher returns, while lower risk investments gener-
in debt. His equity portfolio comprises India, 95% is through Helios’ fund, apart for his Indian fund. Growth investing move towards value. So, we said let’s 2% cash in our global fund,” Arora ally offer lower returns. It is important to strike a balance between
40% of Indian stocks and 45% of global from the legacy stocks. His overall port- is a strategy that allows investors to look for the easiest value stocks to buy. points out. The global fund has main- risk and return that aligns with your financial goals and invest-
equities. Barring some of his legacy folio’s weighted average returns were maximize their capital appreciation by And the second is that we also didn’t tained its bullish stance on the US ment timeline. Consider factors such as the historical perform-
investments in the Indian markets, all of 37% in dollar terms in the past year. investing in companies with high have many PSUs. So, we thought it technology sector. The fund has ance of the investment, fund track record, full cycle demon-
Arora’s equity investments have been PSU play growth potential. The new value ideas would be logical to look at that space. 35-40% weightage in US technology strated capabilities, the current market conditions, and any
made through Helios’ own funds. In While Arora has usually stuck to the favoured the inclusion of HPCL and Also, the government had attempted stocks. potential outlook before making investment decisions.
global markets, 100% of equity invest- growth style of investing, he recently BPCL to the fund’s portfolio. “So, the to privatize BPCL in 2022, but that (For an extended version of this story, In an ideal scenario, investors will aim for low risk, high return,
ments is through Helios’ own fund. In also identified a couple of value ideas logic was that in 2022, there was a didn’t work out. We felt that they go to livemint.com) and high liquidity products. However, getting all three together
is difficult. It takes research and time to plan your investments
correctly. A small mistake can cause you to have your money
locked up tight when you need it or face a severe loss when you

How to plan your retirement corpus and charity fund outgo least expect it or be facing very small growth over a long period.
Investors now have a choice to invest (directly or through an
investment professional) in multiple products through a fund
house (in MFs, PMS, AIFs products) that can optimize on all three
Harshad Chetanwala This year, my EPF contri- 25 years. Your present invest- and charity work require- amount in equity mutual factors of risk, liquidity and returns. Fund managers will rebal-
ASK MINT
bution is ₹1.2 lakh. Addi- m INVESTMENT
ments in mutual funds, stocks, ments. funds. Assuming a return of ance portfolios in accordance with the overall objective of the
My retirement is about tionally, I aim to allocate PPF and EPF, including an As you have 8 years for 12% p.a., you will need to invest MF, PMS and AIF schemes that they manage and based on the
eight years from now and, ₹15 lakh for charity work, annual contribution of ₹1.20 retirement and do not have ₹86,000 per month to build risk (low to high) and returns parameters (target benchmark
so far, I have ₹52 lakh post-retirement. How do I tion will continue during your lakh every year in EPF, could any short-term objectives, you the complete corpus for both index) on the background of high liquidity. Investors can choose
invested in mutual funds structure my retirement post-retirement period as well. help you reach ₹2.35 crore at can consider investing in your goals. the required option that suits their risk profile.
and stocks, ₹25 lakh in a corpus? If we assume an overall portfo- your retirement. equity mutual funds. You As your present monthly Once these key factors are addressed, investors can further
Public Provident Fund —Name withheld on request lio return of 9% per annum The charity amount of ₹15 already have a monthly invest- investible surplus is ₹62,000, look at other parameters like pedigree and age of fund house,
(PPF), and roughly ₹26 (p.a.) during the post-retire- lakh today will be close to ₹24 ment from your salary getting you can still reach the goal by strong leadership team, performance-based fees, or fixed fee
lakh in my Employees’ If we consider inflation of ment period, then you will lakh at your retirement, invested in EPF, hence invest- increasing your monthly structure, exit load, tax implications, economic cycles, and so on.
Provident Fund (EPF). My 6% then the monthly amount need a corpus of ₹3.45 crore. assuming 6% inflation. ing the bare minimum amount investment by 11% every year. Ignoring these factors could lead investors to make suboptimal
monthly expenses amount required for regular expenses This accumulated amount Hence, we need to invest to in PPF, going forward, could Harshad Chetanwala is CFP, decisions.
to around ₹1 lakh, with sav- at the time of your retirement can easily help you take care of build the additional corpus of be a better strategy as it will co-founder at MyWealth- Deepak Sood is senior partner, and head -fixed income, at asset
ings of ₹62,000 per month. will be ₹1.60 lakh. The infla- your post-retirement stage for ₹1.34 crore for your retirement allow you to invest most of the Growth.com management firm Alpha Alternatives.

What a car loan costs you What gold’s record run is telling investors
I t is tempting to buy a new car, be it an upgrade, a first car or another car for the family. Whatever
be the reason, a car loan makes the purchase easier. Car loans are usually of three to five years
but some lenders may offer loans for up to seven years too. A loan for longer may mean smaller
FROM PAGE 10 cultural affinity with gold
makes demand pretty inelas-
equated monthly instalments (EMIs), which makes the car seem more affordable, but overall, you Index, which is the most popu- tic.
pay more as interest. Don’t forget that a car is a depreciating asset, so taking a bigger loan lar measure of the stock mar- Indian gold demand, which
may not be the best thing to do. But if you take a car loan for a short duration, the EMIs ket’s expectation of volatility. has been in the range of 700-
will be heavy and non-payment will mean a blot on your credit report. Conditions Here’s a snapshot of the pre- 800 tonnes annually since
apply to the loan amount also. For instance, some lenders give a loan for the full vious times when the yellow 2019, is expected to increase to
ex-showroom price of the car, while others may offer a loan up to 80%. Apart from metal hit lifetime 800-900 tonnes in 2024 on
the interest rate on a car loan, also take a look at the applicable processing fee and highs—1970s (after the ‘Nixon the back of robust economic
other charges. shock’ ended the convertibil- growth and higher income, as
Loan amount = ₹1 lakh. Tenure = 5 years ity of the US dollar to gold); per the World Gold Council.
2008 (global financial crisis); However, for investors itch-
Interest 2011 (European debt crisis) and ing to participate in the red-
Lender EMI (₹) Processing fee
rate (%) 2020 (covid-19 outbreak). hot rally, caution is the key-
IndusInd Bank 8.00-18.00 2,028-2,539 3% of the loan amount
Correlation does not mean word.
causation, of course, but it is “While transition to lower
HDFC Bank 8.28-11.50 2,041-2,199 Up to 0.5% (Min ₹3,500 and Max ₹8,000) safe to say shining gold prices In this undated handout photo released by Newmont Mining interest rates bodes well for
DCB Bank 8.50-11.37 2,052-2,193 2% (Min ₹5,000) have almost always been Corporation, gold nuggets and bars are shown. AP gold, much of it seems to have
accompanied by some very already been priced in. This
Bank of Maharashtra 8.70-13.00 2,061-2,275 0.25% (Min ₹1,000 and Max ₹15,000) grim news. fact that historically, the Fed depreciation. could limit the upside for the
Canara Bank 8.70-11.95 2,061-2,222 0.25% (Min ₹1,000 + GST and Max ₹5,000 + GST;* What is the bullion market has managed a soft landing The rupee has been weak- precious metal going for-
nervous about currently? The only twice following nine pre- ening against the US dollar, in ward,” said Chirag Mehta,
Central Bank of India 8.70-10.15 2,061-2,132 0.50% + GST (Min ₹2,000 and Max ₹20,000)
risk of a wider conflagration in vious tightening line with most chief investment officer, and
UCO Bank 8.70-10.55 2,061-2,152 1% of ₹1500 the Middle East? Sabre rattling cycles over the emerging mar- Ghazal Jain, fund manager,
Union Bank of India 8.70-10.45 2,061-2,147 ₹1,000
by Vladimir Putin and Xi Jin- past five dec- Gold is possibly a more ket currencies, Quantum AMC.
ping? The US-China rivalry ades. The other accurate ‘fear gauge’ which makes Further, meaningful upside
Indian Bank 8.75-10.00 2,064-2,125 Nil spiralling into a major show- seven had ended purchases of from these levels can come on
Punjab National Bank 8.75-9.60 2,064-2,105 0.25% (Min ₹1,000 and Max ₹1,500) down? Or is it betting that the in a recession than VIX—the most dollar-priced the back of a more dovish
US economy will not achieve a making a hard popular measure of the c o m m o d i t i e s stance by the US central bank
State Bank of India 8.75-9.80 2,064-2,115 ₹750 to ₹1,500 + GST; 50% concession for SBI GREEN CAR (EV) ‘soft landing’, no matter how landing scenario like crude oil in response to a sharp deceler-
CSB Bank 8.75-11.00 2,064-2,174 Not available on website buoyant Fed chair Jerome still feasible this market’s expectation and gold more ation in growth or a financial
Powell sounds? year,” Mathur expensive. accident.
IDBI Bank 8.80-9.60 2,066-2,100 Up to ₹2,500
The correct answer(s) will be added. of volatility. Gold prices “On the other hand, if the
Bank of India 8.85-10.85 2,069-2,167 0.25% (Min ₹1,000 and Max ₹5,000) known only in hindsight, but breached the Fed doesn’t meet the market’s
experts are voicing some con- DOMESTIC DOUBTS ₹72,000 per 10gm mark, while expectations with regards to
Indian Overseas Bank 8.85-10.35 2,069-2,142 As applicable
Banks that have not updated information on their websites are not included here. Data was taken from bank websites on 10 April 2024. The EMI range is
indicative and calculated on the basis of interest rate range. In an actual situation, it may include other fees and charges. Actual applicable interest rate may
cern about the medium-term
outlook.
“The probability of a hard
G old buyers in emerging silver topped ₹84,000 per kg
markets like India have to on 12 April—both record
contend with an additional highs. The yellow metal is up
quantum and timing of rate
cuts, given that inflation con-
tinues to be sticky above its
vary based on the credit profile, loan amount, tenure and as per bank’s discretion. *50% waiver under Retail Loan Festival from 1 April 2024 to 30 April 2024.
landing in the US economy factor which exerts upward around 15% year-to-date. target, gold could see some
PRANAY BHARDWAJ/MINT Source: MyMoneyMantra.com
this year still persists given the pressure on prices—currency That said, India’s age-old consolidation,” they added.
12 MoNDAy, 15 AprIl 2024
NEw DElhI VIEWS LIVEMINT.COM

OUR VIEW THEIR VIEW

REUTERS

India’s East Asia outreach shows

its centrality to regional stability
New Delhi is trying to deepen ties to confront common threats but in-group differences pose hurdles

India’s participation in regional forums highlighting the 1982 UN Convention

like the East Asia Summit and Asean on the Law of the Sea (UNCLOS) as a
Regional Forum help its outreach. foundational aspect of this approach.
In this age of the Indo-Pacific, the He said that “all parties must adhere to
strategic convergence between India [UNCLOS] in its entirety, both in letter
and Southeast Asia has evolved dramat- and in spirit” and reiterated “India’s
ically shaped by common concerns support to the Philippines for uphold-
regarding maritime security, terrorism ing its national sovereignty.” Tensions
and the changing balance of power. have been brewing between China and
HarsH V. PanT India’s strategic partnerships with the Philippines as Chinese forces have
is professor of international relations, countries like Vietnam and the Philippi- been trying to dislodge the Philippines
King’s College London, and vice president nes have deepened security coopera- from the Second Thomas Shoal. Against
for studies at Observer Research tion, particularly in areas such as coun- this backdrop, Manila’s attempt to
Foundation, New Delhi. ter-terrorism, defence technology and incorporate India in its strategic calcu-

Is our economy a force

maritime surveillance. Moreover, lus for issues of traditional security and
India’s Act East policy emphasizes defence is striking in contrast to how

E
xternal affairs minister S. Jais- connectivity projects, such as the India- relations were in the past—often limited
hankar’s three-nation tour to Myanmar-Thailand Trilateral Highway to areas of low politics.
Southeast Asia last month amid an and the Kaladan Multi-Modal Transit India’s engagement with the South

to reckon with globally? election cycle in India underscores the

critical role this region plays in New
Delhi’s aspiration to emerge as a critical
anchor in the Indo-Pacific. India’s rela-
Transport Project, to promote eco-
nomic development.
The emergence of a strategic dimen-
sion in India’s outreach to the East
China Sea (SCS) issue is primarily
driven by its strategic interests in mari-
time security, freedom of navigation
and regional stability. While India is not
tionship with Southeast Asia is marked is a relatively recent phenomenon. a claimant state in the SCS dispute, it
by historical, cultural and economic Launched in 2014, the Act East policy has significant stakes in the region due
Large emerging market economies like India’s have caught up with the advanced world in ties that have evolved over centuries, has sought to give a more proactive to its growing economic and security
shaping the diplomatic landscape of the focus to Indian engagements in East interests in the Indo-Pacific. New Delhi
generating economic spillovers, says IMF. The G20 must aim to work more closely together region. Geopolitically, India’s ‘Look and Southeast Asia by deepening eco- has consistently advocated the peaceful
East’ policy, initiated in the early 1990s nomic integration, expanding strategic resolution of disputes in the South
and later reconfigured as the ‘Act East’ partnerships and fostering cultural and China Sea in accordance with interna-
policy, demonstrates its commitment to people-to-people ties. By doing so, tional law, particularly UNCLOS,

T
he G7 may need to move over for a international reserve currency. The resultant deepening engagement with the region. India seeks to play a more prominent underlining the importance of uphold-
new group on the block: Emerging ‘exorbitant privilege’ of the US dollar means that Yet, as a recent survey published by role in shaping the evolving geopolitical ing the principles of freedom of naviga-
the ASEAN Studies Centre at ISEAS – dynamics of the region while advancing tion and overflight in the SCS, given its
market economies (EMEs). As the the world’s largest economy can easily finance Yusof Ishak Institute reveals, it is a long its own national interests and goals. significance as a crucial maritime trade
International Monetary Fund’s huge deficits because its government bonds road ahead for India in the region, with India’s Indo-Pacific policy has at its route connecting the Indian Ocean
(IMF) April World Economic Out- are readily bought by other countries. Worse, only 0.4% of those surveyed naming heart the notion of Asean centrality, with the Pacific. India’s focus has
look puts it, “The global economy any change in US policy has spillover effects on India as the country with the most polit- which reflects its recognition of the remained on framing the debate in
is increasingly influenced by the Group of the rest of the world, as evidenced by the ‘taper ical and strategic influence in Southeast region’s pivotal role in shaping the normative terms by focusing on
Asia. This despite the fact that histori- Indo-Pacific architecture and its com- enhancing maritime cooperation,
Twenty’s large emerging markets. Over the tantrum’ of 2013, when a spike in US Treasury cally, New Delhi’s cultural influence mitment to deepening ties with South- promoting connectivity and building
past two decades, these economies have yields after the Federal Reserve said it would extended to Southeast Asia through east Asia. Yet, the divisions within partnerships with like-minded nations
become much more integrated with global slow its pace of bond buying had a harsh ripple- trade routes, religious exchanges and Asean are becoming starker and the to ensure regional stability and security
markets and are generating larger economic to-near-tsunami effect on emerging-economy the spread of Indian civilization. challenges facing a once-dynamic in the Indo-Pacific.
‘spillovers’ to the rest of the world.” Even in a currencies. The Indian rupee, for example, India’s economic engagement with regional grouping growing. Asean’s India remains constrained by the
Southeast Asia has also grown signifi- inability to forge a coherent response to inability of regional stakeholders to
world where we have all come to accept that depreciated from ₹55.80 to the dollar on 24 May cantly. The Association of Southeast the Chinese belligerence in South come to a cohesive understanding on
change is the only constant and got accus- to ₹65.24 by 6 September 2013, even as the Asian Nations (Asean) is India’s fourth- China Sea can no longer be ignored. the issue. Yet, it cannot remain immune
tomed to the IMF recanting its position on Reserve Bank of India sold a net $14 billion from largest trading partner. Initiatives like During his visit to Manila last month, to all the turbulence that is growing in
‘truths’ like capital account convertibility as June to September on trying to keep its decline the India-Asean Free Trade Agreement Jaishankar had stated that prosperity in the region. New Delhi’s Southeast Asia
a must and the need for fiscal austerity, regard- orderly. “Growth spillovers from domestic have facilitated trade liberalization and the region is “best served by staunch outreach is also contingent on the
economic cooperation. Additionally, adherence to a rules-based order,” choices of regional players.
less of the context in which such policies are shocks in G20 emerging markets have increased
sought to be imposed, the Fund’s statement is over the past two decades,” says the WEO, “and
a revelation. It throws new light on what has are now comparable to those from advanced
long been accepted as a given in the global economies.” As we would expect, the largest
context. Namely, that spillovers are only one- EME spillovers are from China. These explain
way: from advanced to emerging markets; not just as much of the variation in emerging-mar-
the other way round. So, while the 2008 global ket output as those from the US. It is well known www.livemint.com
New Delhi, Mumbai, Bangalore, Kolkata, Chennai, Ahmedabad, Hyderabad, Chandigarh*, Pune* Tuesday, April 15, 2014 Vol.8 No.89 `4.00 in Delhi­NCR/`5.00 outside Delhi­NCR 24 PAGES

Kejriwal leads the

financial crisis that had its origin in the US that China’s rise has spelt a shift in heft within
MEDIA:
pack on news channels >6
ELECTIONS: Six ex­CMs battle it out in
Karnataka >9

impacted countries the world over, crises like the G20. But here’s the surprise: Other G20
CORPORATE: Business groups hike
infrastructure investments >10
CONTENT PARTNER
VIEWS: Is India about to turn fascist? >23

the East Asian crisis of 1997 or Latin American emerging markets—such as India, Brazil, Russia
SENSEX 22,628.96 ® NIFTY 6,776.30 ® DOLLAR `60.18 ® EURO `93.48 ® GOLD `29,161 ® OIL $108.04 Æ $0.71

PTI
CONTINUED CRITICISM Why parties are QUICK EDIT

crisis of the 1980s impacted mainly other and Mexico—also play an important role in the
Two books
spell trouble
paying attention Trade in
to young,
first­time voters
slow motion
B Y U TPAL B HASKAR
[email protected]
·························
G lobal trade is
expected to grow by
4.7% in 2014, below its
historical trend of 5.3%, a
You can’t hate old people,
for Congress
because if you are not
NEW DELHI
figure not expected by

I
EMEs—typically, in the vicinity of the country economic performance of their neighbours.
n the third round of polling, the World Trade
held on 10 April, the constitu- Organization to be
ency of Chandigarh reported an surpassed until 2015.
interesting statistic: While the The proximate cause
overall turnout was 71.92%, vot- for this is the weakness in
ers in the age group of 18-21 saw the European Union’s
Furore over books fuels a higher turnout of 77.93%. economy, which is taking
BJP’s attacks against After Baru, Across the nation, of the
814.59 million registered to vote
longer than expected to
recover. But a deeper
Congress days ahead of Parakh claims

at the centre of the problem. The LatAm crisis We could think of this new normal as sweet
in the 16th general election, an reason is the

an old person, you will

crucial fifth phase of estimated 120 million are first- continuation of nearly
Lok Sabha elections PM’s authority time voters in this age category—
around 24 times the population
80% of the protectionist
measures put in place by

B Y G YAN V ARMA & A NUJA

undermined of Singapore.
However, they do not vote as a
countries since 2008
when the global crisis
························· bloc and are spread across India, erupted. Normally, global
NEW DELHI which means that while they can trade grows at twice the
B Y A MAN M ALIK &

T he Congress is back in fa- U TPAL B HASKAR probably influence the outcome rate of global output.

was largely confined to Latin America, while revenge for all the decades when EMEs were
miliar territory: fire fight- ····················· in constituencies, they are un- This was the trend until
NEW DELHI
ing. Tomes just published likely to determine it, unlike vot- the crisis.
by two former insiders in the
F ormer coal secretary ing based on social identity. There is a good case

become an old person, or

government have put the spot- P.C. Parakh says According to the Election for India to take the lead
light back on the governance Prime Minister Manmo- Commission of India (EC), the in pushing for the next
record of the Congress-led Unit- han Singh’s authority in number of first-time voters in the round of global trade
ed Progressive Alliance (UPA). determining the process 18-19 years category is 23.16 mil- liberalization, something
And this just days before the by which coal blocks lion, or 2.8% of the national elec- that it will benefit from.
fifth phase of polling in the gen- should be allocated was torate. Of these, 41.4%, or 9.59 With investment growth

the East Asian crisis affected the ‘Asian Tigers,’ at the receiving end. But that would be self-
eral election on 17 April, which undermined by former million, are female and 58.6%, or likely to remain
will see voting for 122 seats coal minister Shibu Soren 13.56 million, are male. In the depressed for some time
spread across key states, includ- and minister of state for battleground states of Uttar and little scope for a
ing Bihar and Uttar Pradesh. coal Dasari Narayana Remembering Ambedkar: Major political leaders including, (from top), Pradesh and Bihar, which to- spending stimulus,
While the weekend was domi- Rao. Prime Minister Manmohan Singh, Bharatiya Janata Party’s prime gether account for 120 seats, vot- exports offer India one

die while trying to do so.

nated by Sanjaya Baru’s book, In his book Crusader or ministerial candidate Narendra Modi and Aam Aadmi Party leader ers in the 18-19 years age catego- escape route from its
The Accidental Prime Minister: Conspirator? Coalgate Arvind Kejriwal on Monday paid homage to B.R. Ambedkar, the current growth impasse.
The Making and Unmaking of and Other Truths, re- architect of the Indian Constitution, on his 123rd birth anniversary. TURN TO PAGE 4®

with advanced economies either unaffected or defeating. In a globalized world, we sink or

Manmohan Singh, which alleged leased on Monday, Para-
that the separation of political kh writes that his (Para-
and executive powers had ham- kh’s) proposal to adopt a
strung Singh, on Monday, it was policy of open competi- SLOWING GROWTH near-literal reversal of fortune,
the turn of former coal secretary tive bidding for auction- driving them back to jobs and
P. C. Parakh to grab the lime-
light.
Parakh’s book, Crusader or
Conspirator? Coalgate and other
ing coal blocks for captive
use was “killed” by Soren,
the then coal minister,
Rural workers now have fewer ways of living they thought they
had left behind.
Between 2005 and 2012, as In-
dia’s industrial and service sec-

incentives to move to cities

marginally affected. swim together. Spillovers are inevitable.
Truths, on the so-called scam in TURN TO PAGE 4® tors boomed, farm employment
coal block allocations, alleged shrank by 37 million jobs. Econ-
that the prime minister’s author- omists at the Mumbai-based
ity in determining the way in
which coal mines should be al- 20
14 NEW A TALE OF TWO RISING GIANTS
credit-rating firm Crisil now ex-
pect that process to go back-

INDIA
lotted had been undermined by wards: By 2019, 12 million more
two ministers in 2004—coal min- Agriculture accounts for almost ...whereas more of China’s workers ...pulling more of its population people will be working in agri-
ister Shibu Soren and minister of half of employment in India... are in industrial and service jobs... into urban areas. culture than in 2012.
state for coal Dasari Narayana ELECTIONS “Because there won’t be

We are talking here not only of crises, which And while it might be naïve to think that any
Jobs by sector, as a percentage of total employment Urban population, as a share of total

L E MON Y SN I C K E T
Rao. enough job opportunities out-
The Bharatiya Janata Party 60 % 60 % side of agriculture, both in rural
Agriculture Agriculture China
(BJP) was quick to try and exploit distracting critics who targeted 50 50 areas and in cities, people will
the contents of the two books to its prime ministerial aspirant remain stuck,” says Dharmakirti
its political advantage even as Narendra Modi for correcting his 40 40 Joshi, Crisil’s chief economist.
the Congress had to work over- previous error of omission— Services India “Agriculture’s share of GDP is
30 30
time to mitigate the political leaving out details about his Services shrinking, but more and more
damage. wife—in the affidavit filed with 20 Industrial*
20 people will be lashed to it.”
At the same time, the contro- his nomination papers for the That’s not the way India’s pol-

have spillovers by their very nature, but also country will frame policy keeping global
Industrial* 10
10
versies also helped the BJP, by Vadodara Lok Sabha seat. icymakers want the next chapter
On Monday, at his rallies in 0 0 of the country’s economic story
Uttar Pradesh and Rajasthan, 1990 2000 ’10 1990 2000 ’10 1990 2000 ’10 to go. Voting in Parliamentary
Modi attacked Congress presi- *Includes mining, manufacturing and construction Source: World Bank The Wall Street Journal
elections kicked off last week
dent Sonia Gandhi for belittling amid deep discontent about job-
the constitutional office of the lessness and missing opportuni-
prime minister. B Y R AYMOND Z HONG & Today, he is back on the farm, tic product (GDP) has slowed to ties for young people.
“Babasaheb Ambedkar gave S APTARISHI D UTTA scratching out a living from a a pace not seen in a decade. The The government’s latest five-

of domestic macro policies pursued by large rather than domestic fundamentals in mind,
us freedom of speech but such is The Wall Street Journal small plot of land near his birth- Indian economy expanded at an year plan for the economy,
Congress that prime minister ························· place where he grows corn, annual rate of 4.7% in the last which covers 2012-2017, says the
MORKAHI
himself lost this right. Who in wheat, potatoes and mustard. quarter of 2013. That may be siz- share of Indian workers on farms
Congress snatched this right
from him?” Modi said during his
day-long visit to Uttar Pradesh
A s a teenager, Ram Singh left
this remote rural village and
moved to fast-growing New Del-
“Whenever someone leaves
his village for the city, he thinks,
‘I will earn money,’” says Singh,
zling by Western standards, but
it is a serious comedown for a
country whose GDP growth
is “still too large”, and places
great emphasis on helping the
economy create jobs outside of
and to Sikar, Rajasthan, on the hi to chase the spoils of India’s who isn’t certain of his age but peaked at 11.4% in 2010. Infla- agriculture.
birthday of B.R. Ambedkar, the economic boom. says he is around 30 years old. tion is high, workers aren’t find- Failure to do so would carry
Dalit icon who framed the Indian For 14 years, he toiled in tiny, “Everyone has dreams, but it’s ing jobs, and industrialization enormous economic and politi-

economies. The legacy of the Bretton Woods we must aim to work together to minimize
constitution. primitive factories making every- not always in their power to turn and urbanization are stalling. cal risks as India’s working-age
The Congress, which is seek- thing from auto parts to compo- them into reality.” For many in India whose ex- population continues to swell.
ing a third consecutive term in nents for light switches. His wag- Just a few years after India was pectations of a better life rose India needs to produce enough
power, has been embroiled in a es barely kept pace with the cost hailed as a rising economic titan along with the economy in the decent jobs for the 90 million
Mint is also available for R8 with of living and eventually he gave poised to rival China—even sur- first decade of the 2000s, the cur-
Hindustan Times in Delhi-NCR only TURN TO PAGE 4® up on city life. pass it—growth in gross domes- rent slowdown has brought a TURN TO PAGE 24®

conference established the US dollar as the the downside of spillovers.

MY VIEW | mODERN TimEs

The elderly men who run the world should give us hope
How is it that people often sneer at the anymore. But is this what you would like to of most people to age with enough health to It may appear that I am a fan of elderly
MANU JOSEPH elderly who do not quit, especially men, yet be when you are old? keep working, and to long for something, men, but I am not.
they manage to control so much of the The elderly are the only real outcaste left. and come in the way of the undeserving Even as a kid, I never fully believed that
world? I can say that even for a country like India. young who think they have the first right to the old had some great wisdom in them. In
The world appears jealous of the young, A lot of caste strife is misunderstood as the new world just because they were born fact, I thought most of them were just kids
it has too many opinions about the young. oppression. Indians do practise caste, but later. in ageing bodies. Even so, the natural right

T
he world seems tired of elderly men, People reward the old for denying the suc- on most days, it is more classification than Longing is healthy in the old. But there is of the young to replace the old is plain
but the feeling is not mutual. Many cess of their peers. But their endurance discrimination. Yet, there a longing that is often con- absurd because the smartness of the
countries are run by old men, large does not interest me so much as their desire is a group of people who sidered taboo for old young is more overrated than the wisdom
corporations too, and also most housing for power and respect. Desire is life. often get looked down The world men—sex. It is possible of the old.
societies, it would seem on most days. Some All around me, I see elderly folks who upon for no reason other that old men do not lose Most people in their twenties know very
people appear to hold contempt for ageing have meekly receded into retirement and than their age. seems jealous interest in it, and I really little. And a 30-year-old is usually only a
men for not receding into irrelevance qui- they struggle to fill their days. Some appear One of the great old hope they don’t, but what 20-year-old who has learnt how to pretend
etly. This is odd, because being old is the to feign concern for a wounded delivery men of our times is Clint
of the young may interest them sexually he knows something. People in their forties

is a journalist, novelist, and the

future of all, and what some of them have
demonstrated is that ageing need not be the
agent, just for the chance to talk; they plot
trips to hospitals purely for entertainment;
Eastwood. At 93, he is in
the middle of directing his
but we should attracts social reproach.
Because it is the instinct of
are infected with a sense of doom and fail-
ure, as if they already are in the infancy of
creator of the Netflix series,
‘Decoupled’
same as dying.
What must be going on in the head of US
former captains of industry are seen today
picking fights with house helps and drivers.
next film. On his persist-
ence with life, he has said,
learn the secrets the world to protect young
women from old men. “If
old age. In their fifties, a lot of people have
already given up. So why sneer at some
President Joe Biden as he prepares to run But could this be what the world wants “I try to get up and be pro- of how the the old men hog the young ambitious old men who thrive? We must
for office again at the age of 81? ‘Without from the old? What else do people expect ductive, and don’t let the women, what will be the instead learn from them how they endure.
me, the wrong kind of people will run from their ageing parents? Don’t do any- old man in.” old thrive future of the species?” J.M. Elderly men protect themselves by
America. I am the answer’? No other Ameri- thing interesting that might make you fall? Most successful old Coetzee writes in Disgrace, ignoring the most lethal wisdom that has
can presidential candidate has been this Be with other elderly people, don’t get men were healthy young “Half of literature is about influenced the world—that adaptation is
old. When a special counsel appointed by involved in too many things, assume that men who were either genetically lucky, or it: young women struggling to escape from survival. They survive by not changing, by
Biden’s own administration said that he is the lives of other people are more impor- who trained their bodies to get lucky. under the weight of old men, for the sake of not ‘adjusting’ to the demands their exter-
“a well-meaning, elderly man with a poor tant and more precious? Be alive and dead As a Malayalee, I know how common and the species.” nal environment. That is why Max Planck
memory…” he was enraged. at once? It’s convenient for us to imagine easy it can be for the elderly to be healthy. A way of the world is that it moves moun- said, “...truth doesn’t triumph by convin-
Donald Trump has been mocking that all the old want to do is withdraw into Health and fitness at two different things. tains to help young women escape from cing its opponents and making them see the
Biden’s age in more cruel ways. But Trump a forest, and that they don’t do it only Fitness is tough and of no importance to under the weight of old men, but easily sur- light but rather because its opponents
himself is 77. because there are not many forests around most people. But it is truly within the reach renders everything else to patriarchs. eventually die…”
LIVEMINT.COM VIEWS MoNDAy, 15 April 2024
New Delhi 13

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

Nonsense and bad regulations Biden seems certain to pay for

Gaza but can yet cut his losses
still pervade the banking system Without damage control, his war stance may hit his poll prospects

The Basel 3 Endgame rules are an example of regulatory obfuscation that enables banks to take big risks at public expense

REUTERS

FRANCIS WILkINSON
is a Bloomberg Opinion columnist covering
US politics and policy.

ANAT R. ADMATI
is professor of finance and economics at the
Stanford Graduate School of Business.

I
think what he’s doing is a mistake,” US

I
n December, the CEOs of the eight largest President Joe Biden said [last week] of
banks in the US participated in a three-hour Israeli Prime Minister Benjamin Netan-
posturing session before the Senate Banking yahu’s mismanagement of the war in Gaza. Biden should focus on the human rights
Committee. It was a disheartening display “I don’t agree with his approach,” he said that he has often batted for AP
that showcased the toxic blend of politics and [before Iran’s weekend strikes on Israel].
asinine rhetoric that often characterizes dis- Mistakes were made. One of them was and Biden have diametrically opposed
cussions about banking. Biden’s previously unqualified support of interests. While Biden wants peace,
Much of the hearing focused on proposed Netanyahu, whose pursuit of Hamas in rebuilding and a plan for a shared Palestini-
bank regulations known as the ‘Basel 3 Endgame.’ Gaza now looks an awful lot like ethnic an-Israeli future, Netanyahu appears to
Claiming to “translate” the potential implications cleansing. Global outrage over Hamas’s want none of that. He benefits from crisis,
of this complex topic “for the average American,” barbaric 7 October attack in Israel has been which keeps his shaky coalition together
Republican Senator Tim Scott stated that the supplanted by global outrage at indiscrimi- and Netanyahu out of the dock on corrup-
proposed rules would lead to “fewer dollars to nate Israeli bombing, civilian deaths and tion charges. Netanyahu also knows that
lend to Americans.” Bankers and several senators, widespread destruction in Gaza. Trump would not pester him about dead
including Scott, argued that by keeping a portion The destruction has spread to Biden’s Palestinian children. And it’s Netanyahu,
of the banks’ money “on the sidelines,” these regu- political chances. Cease-fire proponents not Biden, who is steering the Gaza war.
lations would prevent poor people from achieving are waging protest votes against Biden in Biden has received political cover for a
the American Dream. warning that the proposed Basel 3 reforms were criminal behaviour that often goes unpunished. primary states. Protestors are a recurring retreat from Israel from Senate Majority
But these threats often originate from false- grossly inadequate. I also debunked JPMorgan Political forces and misinformation continue feature of Biden public events. Many Leader Charles Schumer of New York,
hoods, such as Scott’s suggestion that capital is Chase CEO Jamie Dimon’s misleading claims to distort policy decisions. In a new and expanded young Americans in particular are appalled which is home to about one-fifth of Amer-
something banks cannot use. In reality, as Demo- about the Basel 3 rules in an open letter to the edition of our book, Hellwig and I explore the that the US has been providing munitions ica’s Jewish population, and former House
cratic Senator Sherrod Brown noted, “Absolutely JPMorgan Chase board of directors and criticized severe governance issues that plague the banking for the bombardment of Gaza. Biden seems Speaker Nancy Pelosi, another stalwart
nothing in these rules would stop banks from Dimon for implying that what benefits large banks sector and undermine our democracies. One likely to pay a political price in November. supporter of Israel. But a retreat from
making loans.” Instead, they would simply require automatically benefits America. notable example is the $13 billion settlement “I think a lot of this damage is, frankly, Biden’s Netanyahu embrace might have its
banks to rely more on their own equity and less on Recognizing the importance of countering JPMorgan Chase agreed to in late 2013 to avoid a irreparable,” said Matt Duss, executive vice own political costs.
borrowing to finance loans and investments. As bankers’ obfuscation, the German economist trial that would have revealed damning details of president of the Center for International So far, all the pressure on Biden has
the late US Federal Reserve Chair Paul Volcker Martin Hellwig and I published the book The fraud committed by the bank’s employees under Policy and a former foreign policy adviser come from those seeking an end to the vio-
famously observed, there is a lot of “bullshit” in the Bankers’ New Clothes: What’s Wrong with Banking Dimon’s leadership. to Senator Bernie Sanders of Vermont. lence. If Biden attempts to stop the flow of
debate about capital requirements. and What to Do about It in 2013. Our goal was to While Dimon correctly asserts that banking Sanders has called Gaza “one of the weapons to Israel, however, he will face
Prudent banks insist on borrowers having expose how and why banks are so needlessly rules are excessively complex, he also vehemently worst humanitarian disasters that we have attacks from Republicans. On Wednesday,
“skin in the game” when they lend, yet vehemently dangerous and to propose ways to change the opposes simpler regulations. But by designing and seen in a very, very long time” and argues House Speaker Mike Johnson called Biden
oppose regulations aimed at reducing their dan- system that merely required political will. But the implementing such rules effectively, policymakers that “Israel should not be getting another “an anti-Israel president.” If Hamas, Hez-
gerous reliance on borrowing. Banks’ aversion symbiotic relationship between banks, govern- could reduce the need for costlier regulations and nickel in military aid until these policies are bollah, or another ally of Iran were to
to equity funding and addiction to borrowing ments and parts of the media and academia ulti- yield significant social benefits at virtually no cost. fundamentally changed.” Though Sanders launch a deadly attack during a pause in
enables them to shift costs and risks to others, mately prevailed. As Democratic Senator Richard If banks are unattractive to equity investors, it holds the Democratic Party’s left flank, his weapons shipments, GOP hysteria would
ultimately benefiting at public expense. They Durbin said in 2009, banks “own” Capitol Hill. may be due to their perceived opacity, or because views are not fringe. In an online survey of reach the stratosphere and Biden would
often get away with it by keeping politicians and More than a decade later, JPMorgan Chase has banking has become too dependent on debt US adults conducted by YouGov 27 Febru- have a new and different Gaza problem.
the public confused. grown much larger, its deposits having more than subsidies, which would be lost if financial institu- ary to 1 March, 52% agreed that the US Much is made of the substantial risk that
Shortly after the 2007-09 financial crisis, I doubled from $1.1 trillion in December 2011 to tions used equity funding. Blanket subsidies to should halt arms shipments to Israel until Biden runs with Muslim voters in Michi-
realized that crucial policy decisions were being nearly $2.5 trillion in December 2023, far out- profit-maximizing banks, however, make little it ends its military offensive in Gaza. Sup- gan. That risk is real. But more than
influenced by nonsensical analysis, impenetrable stripping its reported loans, which rose from sense. Instead, public funds should be directed port for that position among 2020 Biden 100,000 Jews also live in Michigan. Penn-
jargon, fallacious and misleading arguments, and $700 billion in 2011 to $1.3 trillion in 2023. The toward deserving causes and those most in need supporters is more lopsided, at 62% to 14%. sylvania, another swing state, which Biden
inappropriate uses of mathematical models. As bank’s reported assets of about $3.4 trillion, of support. Gauging the intensity of those views is carried in 2020 by 80,555 votes, is home to
a result, opportunities to improve the banking stacked as dollar bills, would extend almost as far The inability of our democracies to resist the difficult, but some erstwhile Biden sup- about 300,000 Jewish adults, according to
system were constantly overlooked. By sowing as the moon. influence of powerful corporations and their porters are clearly livid. Plans for a White a Brandeis University study. Support
confusion and leveraging their influence over While the runs on Silicon Valley Bank and First leaders is alarming, given that this ongoing failure House iftar dinner during Ramadan ran among Biden backers for halting arms
politicians, regulators, lawyers and economists, Republic Bank in the spring of 2023 reflected fuels legitimate discontent with our economic, into opposition from Muslim leaders furi- shipments to Israel may be lopsided, but
bankers have corrupted the mechanisms by which legitimate concerns regarding their asset values political, and legal systems. Deception (possibly ous, as one said , at Biden for “enabling the it’s not universal: Recall that 14% of Biden
rules are formulated and enforced. and solvency, flawed accounting rules and Fed self-deception) is prevalent not only in banking Israeli military to starve and slaughter the supporters in the YouGov poll supported
The 133,000-word ‘Basel 3 Endgame’ adjusts support continue to obscure the fragility of other but across numerous other industries as well. Palestinian people in Gaza.” continuing weapons shipments.
a complex system of ‘risk weights’ by trying to banks. The persistence of bailouts is costly for Based on misleading and disingenuous threats, For Muslims and others angry at Biden’s How Gaza [and Iran-Israel hostilities]
calibrate the rules. Banks have weaponized the society and encourages a culture of recklessness, banks have lobbied furiously and mobilized citizens support of Israel, the political cost-benefit will sway votes is unknown. Biden “does
complexity of the proposed rules, threatening to both in the US and abroad. and politicians to object to the proposed rules. On analysis is stark. If they sit out the election have an issue on his right and to his left,”
reject certain loans. In fact, with the debt subsidies The March 2023 collapse of Credit Suisse is a 16 January 2024, the deadline for public comments, and Biden loses in November, [a man Duss said. But while the most politically
we all provide them, they will take risks, chase out- prime example of the disruption caused by the I submitted my reaction to the Basel 3 Endgame known for trying to deny US visas to people beneficial path may be obscure, the com-
size returns and endanger us. failure of financial institutions that operate across proposal, as well as another related and misguided from Muslim countries] will move back mitment to human rights and international
Over the past 14 years, I have consistently chal- multiple jurisdictions. It is doubtful that maintain- one. I attached a document debunking 44 flawed into the White House. That would be a bit- law that Biden has expressed in other con-
lenged the fallacies, irrelevant facts and myths ing such large institutions is justifiable, given the claims, which my co-author and I continue to revise ter result. Yet if politics were the sum of texts might provide a surer map. It’s too
propagated by numerous bankers, policymakers, costs and risks they pose to our societies. More- as we identify more such claims. In the politics of hyper-rational cost-benefit analyses, the late for Biden to escape political damage
and economists. In November 2010, I helped orga- over, the preferential treatment of banks has fos- banking, I fear that wilful blindness to truth is likely world would be a vastly different place. from Gaza. But not too late to admit that he,
nize a letter by 20 banking and finance scholars tered widespread disregard for rules, encouraging to prevent better rules. ©2024/PROJECT SYNDICATE Complicating matters is that Netanyahu too, made a mistake. ©BLOOMBERG

guEst VIEW

Intellectual property finance: An opportunity knocks

make it easier for Indian startups to obtain lack of mechanisms to dispose of an asset in loans unattractive. Revising such banking assets, which is expected to result in lower
SHUCHI AGRAWAL capital and help spur the country’s progress. case of default may lead to greater volatility regulations could help lift the appeal of interest rates and bigger loan amounts. The
At present, India holds the fifth position in in the value of the asset. For instance, King- IP-backed loans. Organisation for Economic Co-operation
trademark registrations and is sixth in patent fisher Airlines had used its trademarks as Nevertheless, many countries have been and Development has also recommended
registrations globally. The utilization of collateral to gain loans from a consortium of devising systems and schemes to support the that development banks and governments
these assets to obtain financing could help banks. However, once its performance IP financing industry. For instance, Singa- should consider sharing the risks of IP

I
ntellectual Property (IP) financing is an the economy attract considerable capital. began to deteriorate, the value of the trade- pore has declared that it plans to establish a financing with investors and lenders by par-
outstanding financial innovation as it Indeed, the 161st Report of the Rajya Sabha marks also plummeted, as set of intangible asset valu- ticipating in risk-sharing mechanisms or
allows IP holders to monetize intangible Parliamentary Committee on Intellectual found by two failed auc- ation guidelines to increase offering support to IP risk insurance.
IP assets to secure immediate access to capi- Property has opined that Indian laws need to tions for them, and its len- We should put information transparency In conclusion, it must be re-emphasized
tal. There are several methods of securing enable greater acceptance of IP as collateral. ders suffered heavy losses. and standardize the valua- that traditional funding provided by com-
such finance: through licensing, collaterali- Earlier, the National IPR Policy had also Third, the development in place a policy tion process. The Interna- mercial banks based on the supply-chain
zation, securitization and sale. IP financing aimed at facilitating the securitization of IP of IP financing demands tional Valuation Standards model is failing to meet the demands of a
is especially beneficial for upcoming and its use as collateral through enabling legal certainty and effec-
framework for Council has also issued gui- fast-evolving market. IP financing is an

is a research fellow in the

research and development (R&D)-intensive
business ventures, which have historically
legislation.
Nevertheless, the very nature of intangi-
tive management of IP
assets. Companies need to
this emerging dance on the valuation of
intangible assets (IVS 210).
impending revolution in the field of finance,
and developing countries such as India must
corporate law and financial
regulation team at Vidhi Centre
been denied funding by traditional banks as
they lack hard assets to serve as collateral.
ble assets presents unique challenges in
using it to secure funds. First, many financial
be better equipped at har-
nessing the monetary
field that can aid In Jamaica, multiple work-
shops were organized to
make the most of this opportunity at the very
onset. Given the comparative novelty of this
for Legal Policy. Therefore, IP financing enhances the ease of institutions lack the in-house competence potential of their IP assets the evolution of train IP valuers in advanced concept, there is some hesitance on the part
accessing credit markets for creators and and models needed to grasp the value of IP and investors need to over- valuation methodologies. of regulators and investors to participate in
allows them to recover R&D costs quickly, assets. It is difficult to measure the realizable come the lack of familiarity our economy In addition, companies it. However, there are several measures that
which in turn fuels innovation and eco- value of IP assets in the event of a default. and expertise. Addition- such as Aon PLC are trying are already being taken by various countries
nomic growth. The growth in popularity of Furthermore, the lack of a well-established ally, it is important for reg- to develop a natural lan- to streamline the process and enhance
IP financing is following the trend of an secondary market for IP makes it difficult to ulators to foster an encouraging environ- guage processing system to determine the transparency as well as accountability. India
increase in intangible asset-dominated com- conduct price discovery. ment to aid the development of this field. At value of IP assets. The ability to correctly must also consider implementing similar
panies. For instance, physical assets only Second, the lack of a secondary market present, Basel III requirements do not value IP assets will also enable market par- policy changes to allow for improved IP asset
account for about 4% and 6% of Amazon and also impedes the disposal of such assets recognize intangible assets such as IP to be ticipants to hedge against the various risks of valuation methodologies and risk manage-
Apple’s net worth, respectively. India is the when required. The success of IP financing suitable collateral that may be used to justify this emerging market. The need to mitigate ment through risk sharing or supporting
third-largest startup hub globally and hinges on the existence of processes and banks maintaining a lower amount of capital risks posed by IP financing has also led to the insurance coverage for such assets. It would
increased recognition of IP financing will channels to liquidate assets. However, the to guard against risks. This makes IP-backed creation of an insurance market covering IP favour India’s economic evolution.
14 MoNDAy, 15 April 2024
New Delhi BUSINESS OF LIFE WORKPLACE LIVEMINT.COM

Watch out, your Reels

might cost you a job ISTOCKPHOTO

express themselves any which way they want in

their personal and social space. The employer
is neither responsible for such behaviours
beyond office hours nor liable to them,” he
points out.
Ideally, an employer must only intervene
when the employee violates certain laws of the
land for which they are responsible to the
authorities. The problem arises when an MONDAY MOTIVATION
employee wants their organization to take a
similar stand as theirs, or vice versa. It is a tricky
terrain to navigate, reiterates Chakara.
“In a world that is getting more polarized by
the day, how one shows up on social media may
LISSUN’s CEO
become a tool for exclusion or inclusion at the
workplace. There may also be situations where
organisations may alienate stakeholders and
on mentorship
customers just as individuals may alienate
bosses,” she notes.

A BALANCING ACT
and family time
It’s a Catch-22 situation for both employers and
employees, so how does one safely navigate this Krishna Veer Singh says covid sparked
grey area without landing in trouble? the idea for his mental health platform
Dr Rizvi believes an employee must know
their legal rights as a citizen and insist upon
being respected for it. In case an employee is Shail Desai
hauled up for their views that are seemingly irk-

M
some to an employer, they must point out the uch like everyone else, the covid-19 pandemic in 2020
absence of any clause in the employment con- brought disruption to Krishna Veer Singh’s life. At the
tract that prohibits them from sharing their per- time, he and Tarun Gupta, who became online mental
sonal opinions. health platform LISSUN’s co-founder alongside him, saw the
“Even if there is a clause, an employee can impact of mental health problems at close quarters. After doing
challenge them to amend it in line with the their research, they decided to address the issue by launching
directions by the Constitution of India. In case LISSUN in August 2021.
the employer continues to punish them for their “The pandemic significantly amplified existing challenges and
views, the employee can take the matter to exposed stark gaps in the availability and accessibility of mental
court,” he says. health support systems. It was a period marked by heightened
Talati, on the other hand, advises employ- anxiety, isolation and stress, affecting millions worldwide,” says
ees to embrace social media with caution. Gurugram-based Singh, co-founder and CEO at LISSUN.
When employees join an organization, Through their network of mental health professionals, Singh,
A refresher on social tial “bad” hires. One might post a comment on An organization must engage an employee
issues currently plaguing society or personal for the competencies and skill sets they possess
upholding its image is their responsibility.
Thus, it’s important to read the company pol-
45, envisions a holistic solution that can provide support, under-
standing and accessibility to anyone anywhere, without the barri-
media best practices as thoughts on the country’s political climate, in achieving organisational goals, says Dr. Irfan icy and refrain from posting anything that can ers traditionally associated with mental health services. He says
hoping to start a conversation and get more A. Rizvi, professor of leadership and change damage its reputation. “If the company does their Artificial Intelligence algorithms are also rooted in psycho-
your posts may go likes/followers, but it’s hard to predict how the management, International Management Insti- not have a policy, ask for clarity. You should logical theories and practices to accurately assess and assist users,
against company views, post might land.
In a US survey with 2,041 hiring managers,
tute, New Delhi.
“As long as an employee fulfils their contrac-
know which platforms and formats are cov-
ered in the policy. Is it okay to retweet a jour-
while enhancing the efficiency of the therapist and personalizing
the experience.
especially during conducted in December 2022, by market tual obligations, an employer has to respect and
research company Harris Poll on behalf of reward them for that. Beyond this, employers
nalist or can it cause trouble?. If unsure about
posting, check in with your leaders or HR
Singh talks to Mint about how he mentors, and the importance
of virtual check-ins.
election season Express Employment Professionals (a leading do not have any right to dictate what the team. Ask for their guidance,” she adds. Who do you consider your mentor?
staffing company in US and Canada), 88% of employees do beyond office hours, the hobbies In case an employee decides to share their My mentors are a couple of people from my previous organiza-
them admitted considering firing employees for or interests they pursue, or even the philoso- views on a controversial topic, the best way to do tion with whom I have worked. They
Geetika Sachdev the “objectionable” content they put out on phies and ideologies they subscribe to,” he says. so is by putting forth opinions without using Covid exposed know my passion for creating impact
their social media profiles. This includes writing Until a few years ago, organizations laid out hurtful language. “Avoid posting when you are gaps in the and my strengths and weaknesses.

F
or Anant Pujari, a marketing pro- something offensive, sharing sexually explicit social media policies and expected employees angry or having a bad day. It is likely to cause
fessional with a multinational in material or revealing confidential information to follow them. Common advice given to work- regret at a later stage. Also, most social plat- availability and They are my mainstay in this choppy
journey of entrepreneurship.
Mumbai, getting a job was a strug- about the company. ing professionals was to be mindful of what they forms have settings to keep the account private accessibility of One major insight you worked on
gle, but not because he didn’t fit “Social media is not the same as it was a dec- posted on social media, lest it had professional or restrict content viewing to close friends. One mental health with your mentor’s guidance?
the desired role. It was because of ade ago,” says Bhakti Talati, an independent consequences for them, says Neelima Chakara, can do this to safeguard themselves on social support systems An essential insight was thinking
his extremely vocal posts on social media, which work-life balance executive coach and media,” advises Talati. about the quality of outcome from day
was called out by prospective employers who coach from Mumbai. founder of PurposeL- It’s also the responsibility of organizations to one. Instead of considering it as an aft-
refused to hire him if he wasn’t willing to change “Back then, it was In case one decides to share adder, a coaching create a culture of tolerance and respect for erthought, I was always told to keep it as the guiding principle.
his online habits. For instance, he had shared mainly about con- their views on a controversial organization that diverse views, says Chakara. This has reflected in the way we’ve grown.
images of his presence at the protests against necting with friends.
the CAA-NRC Act in Shaheen Bagh, Delhi, An individual’s social topic, the best way to do so is aims to increase the
capacity and effec-
“Employers must create spaces where open
dialogue can happen. The opportunity to share
What does being a mentor mean to you?
Being a mentor means fostering growth, offering support and
which did not go down well with recruiters. media account is without using hurtful language. tiveness of executives. thoughts in a non-judgmental space and hear empowering others. At LISSUN, I aim to cultivate an environ-
“The first time it happened to me was five more like their mar- “However, times have alternate perspectives can foster tolerance, ment that encourages learning and collective achievement.
years ago,” says the 32-year-old. “I had no idea keting tool. It has changed. The empathy and compassion,” she reiterates. What’s the one positive work routine you have developed
that my social media activity was being scruti- become an open platform to share not just their younger generation does not want their profes- At the end of the day, an employer must pro- during the pandemic?
nised. As someone who publicly posts about my personal lives but also their opinion about any- sional identities to overshadow their lives. They vide its employees with psychological safety to Establishing regular virtual check-ins with the team has
political opinions, I got a bad rap from many thing under the sun.” want to live with purpose and show up as their express themselves freely and fearlessly, reiter- enhanced our connectivity and focus, reinforcing our collective
employers who labelled my content offensive. whole authentic selves in all forums, from the ates Dr Rizvi. “When an employee’s voice isn’t commitment to LISSUN’s mission.
Eventually, I had no option but to dumb down KNOW YOUR CIRCLE workplace to social media. In that spirit, young- heard, whether for the right or wrong reasons, How do you unwind?
my activity on such platforms. I knew it would At a time when general elections in India are sters are increasingly using social media as a and no one expresses empathy towards them, I indulge in spending time with my children and exploring
impact my career graph and I didn’t want to take around the corner and sharply divergent views means for public advocacy for social, environ- they are forced to cry out loud on social media. nature. These activities offer a peaceful retreat from work, allow-
a chance.” define social media, how does an existing mental, and political issues,” she adds. This also draws unwarranted attention which is ing me to recharge and maintain balance.
In today’s digital-first world, one’s academic employee or a potential entrant into a company In a democratic country, each employee has eventually detrimental to both the employee Monday Motivation is a series in which business leaders and cre-
and professional achievements are not enough keep themselves safe from employers’ judge- a private and social life that must not be con- and employer.” ative individuals discuss their mentors and their work ethics.
to score a job. An individual’s profile has also ments? What if an individual’s political ideology trolled by the employer, believes Dr Rizvi. “An
become a deciding factor in weeding out poten- is starkly different from an employer’s? employee must have absolute freedom to Write to us at [email protected] Write to us at [email protected]

How India Inc. is using sports leagues to help employees ISTOCKPHOTO

Some organizations have enterprise, Maruti Suzuki India Limited. The Puma SportsLife League, says runner who has participated in several
The least successful initiative, notes Shreya Sachdev, head of marketing at marathons.
established their own Uppal, is, ironically, the voluntary annual Puma India, started as a simple idea of While sports such as football and run-
sports leagues to keep medical check-up programme, where the playing sports regularly, but it has ning are popular, cricket is the runaway
adoption rate is low. Gym memberships uniquely shaped the organisation’s cul- hit among employees across organiza-
their employees healthy and office workout initiatives are seeing a ture. “It’s a good outlet for us, and helps us tions in India.
at work and beyond low uptake as well.
There’s enough research to show that
as employees to connect, bond and build
relationships outside of our work teams. It
At Maruti, the most popular sports are
marathons, cricket, badminton, football
exercise helps improve physical, mental as has been a binding factor for our employ- and hiking, says Uppal. In the Puma
Shrenik Avlani well as emotional health. And when ees, empowering them to define, design SportsLife League, employees partici-
employees engage in sports activities and create engagement in their own pate in basketball playoffs, football tour-

I
ndia Inc. has come up with several initi- together, it helps in building stronger unique way and shape the organisation naments and also organise challenges
atives to encourage employees to take bonds at the workplace, improving pro- culture,” explains Sachdev. such as plank hold, beating in-house
up an active lifestyle and focus on their ductivity, creativity, even work-life bal- IT and software major Tata Consult- records for number of squats, surya nam-
health and fitness. Many organizations ance. In fact, a 2017 study by the UK’s ancy Services (TCS) has not only champi- askars and jumping jacks. Brisk walking
also incentivise signing up for (and stick- Loughborough University, Running oned participative sports and fitness with and running are the most popular sports
ing with) specific health programmes. Head: What Benefits Does Team Sport programmes such as Fit4Life, TCS Cares at TCS, followed by cricket, badminton
There are a host of activities, sports and Hold for the Workplace?, published in the and TCS Maitree, but it has also been the and dancing.
initiatives such as running, yoga, gym Journal of Sports Sciences, states, “Physi- title sponsor and partner in many races in These sporting events aren’t just about
membership, robust health insurance cal activity interventions in the workplace India and abroad, including the Tata scoring goals or crossing the finish line.
schemes, regular medical check-ups, have been shown to benefit employee Mumbai Marathon, New York City Mara- They are about coming together as a team,
mental health workshops and much more health and performance, and reduce costs thon and TCS World 10k Bengaluru. TCS cheering each other on and feeling that
that employees can choose from. of sickness absence and sickness presen- has a dedicated Web portal and mobile rush of accomplishment. For, promoting
Despite plenty of choice as far as exer- teeism for organisations.” The study application that employees use to partici- a culture of sportsmanship among
cise and activities go, it is the in-house defined workplace team sports activity as, burn fast even after you stop playing, successful Indian Premier League (IPL) pate in the sports activities, as well as track employees sometimes extends beyond
sports clubs and competitions that are the “employees participating in any type of thereby helping in people’s weight man- format, and tournaments that run all year each other’s progress and performance. health benefits. “It cultivates values such
most popular among employees at most workplace physical activity where inter- agement goals,” Roonam Patir, a Goa- round. “Participating in sports events like as fairness and respect for others, shaping
firms, according to human resource (HR) action takes place between employees in based general physician. “Plus, the ele- Sports brand Puma India has been run- races, cricket, and football tournaments the right ethical framework within our
experts. a team or group format to reach a compet- ment of competition makes sports more ning its own sports league, called the can be a game-changer for employees workforce,” says Venugopal.
“Among the activities that can be called itive or non-competitive shared common exciting and fun than regular exercise.” Puma SportsLife League (PSL), since 2015. looking to embrace a healthier lifestyle,” Shrenik Avlani is a writer and editor and
successful are sporting activities where goal or outcome – for example winning, Let the games begin The league has multiple teams and Puma says Vijayraghavan Venugopal, the co-author of The Shivfit Way, a book on
collective fun-filled activities are done,” skill-development, task completion...” Keeping employee interest in mind, employees hold annual auctions, have a co-founder and chief executive officer of functional fitness.
says Rajesh Uppal, member of the execu- “The minimum advantage of this kind many organisations have established their lineup of play-offs and design special jer- sports nutrition business Fast&Up. Venu-
tive board for HR, IT, safety and digital of activity is that your body continues to own sports leagues, often based on the seys for their teams. gopal is an avid cricket enthusiast and Write to us at [email protected]