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297
Tuesday, December 13, 2022
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NEW DELHI, MUMBAI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE* VOL. 16 NO. 297
livemint.com
mint primer QUICK EDIT
Will CNG replace Neutrality

diesel as fuel of please
First, the good news. India’s
choice in India? retail inflation eased to just
below 5.9% in November, slip-
ping under the Reserve Bank of
BY SUMANT BANERJI India’s (RBI) 6% upper tolerance
The share of diesel in passenger vehicle sales in India is falling, and limit for the first time in 2022.
CNG seems to be the fuel that is gaining at its cost. What is behind the Consumer price inflation was
shift to CNG automobiles, and is this change sustainable? Mint almost 6.8% in October, though
explores: it was September’s 7.4% reading
that marked three back-to-back
The price edge quarters of a target missed by
our central bank. Monday’s bad
The price of domestic CNG for vehicles has surged over 80% since April 2021.
Yet, it is a cheaper alternative to diesel. news was a 4% contraction in
Petrol Diesel CNG Prices (in ) factory output during October,
120 as gauged by the country’s
Index of Industrial Production.
96.72
100 Taken together, these two data
69.59 89.62
points may seem to make a case
80 for even slower monetary tight-
78.6 ening by RBI than it did on 7
60
62.29 December. But then, there is
42 also a neutral view to consider.
40
Apr 2020 Dec 2022
No matter how much policy-
All prices in Delhi makers may want to spur eco-
Petrol and diesel in /litre, CNG in /kg Source: Ministry of petroleum and natural gas nomic growth, it’s driven by
SATISH KUMAR/MINT multiple factors, not just by
What is the trend in What is fuelling the lending rates, and has varied
1 CNG vehicle sales?
Sale of automobiles
2 growth of CNG?
Factors like more choices for
vastly in recent years even
though RBI policy has been
using compressed natural gas consumers, favourable economics accommodative all this while.
(CNG) has surged in the last and greater fuel availability have As the argument that private
two years since the onset of helped. There are nearly two investment is only mildly
stricter BS VI emission norms that dozen CNG models available now responsive to cheap debt is
made cars in general and diesel compared to just eight in 2015. For stronger than the contention
vehicles in particular more example, Maruti has expanded its
that inflation can’t be controlled
expensive. In 2019, CNG portfolio from just six models in
accounted for less than 2% of 2015 to 13 today. CNG was always a by RBI tools, it makes sense not
overall passenger vehicle sales in more economical and cleaner fuel to risk backing off too early in
the country, but it shot up to 6% but the rising cost of petrol and our quest for price stability. The
the very next year and is nearing diesel in the last few years has inflation target is actually 4%.
12% this year. In contrast, the share made it more attractive. On a per
of diesel vehicles has fallen from kilometre basis, the cost
over 30% in 2019 to less than 18% competitiveness of CNG went up
this year. In the first nine months from 51% to 65% and 37% to 54%
of 2022, 1.97 lakh CNG vehicles
were sold in India as against 1.65
vis a vis petrol and diesel
respectively between fiscal 2020
MINT METRIC
lakh in all of 2021. and first half of fiscal 2022. by Bibek Debroy
HT
Noida cops were quick to act,

3 Haven’t prices of CNG
gone up as well?
There has been a spurt in global gas prices,
Rescuing 100 goats - that’s a fact.
worsened by the war in Ukraine. India
Illegal transport kept at bay,
raised natural gas price by 40% in The animals vanished, whisked away.
September, and 110% in the first half of the
fiscal. This has raised price of domestic
An animal shelter with breach of contract.
CNG for vehicles by over 80% since April
2021. Hence, its cost competitiveness is
expected to fall to just 32% over petrol and
14% over diesel in the second half of FY23. QUOTE OF THE DAY
India-UAE cooperation is
Is CNG availability What is the outlook
4 getting any better?
Yes; as of July 2022, there were
5 for the future?
The gas price rise may temper
particularly significant. We have
known each other for long, but
4,664 CNG stations in India against demand for CNG vehicles. The have rediscovered each other only
3,095 on March 2021 and only 995 Kirit Parikh panel recently in 2016. With CEPA, ties have
in 2015. These are still small recommended cutting excise duty
numbers when compared to petrol on CNG and bringing it under really taken off. India-UAE
or diesel—over 80,000 pumps, GST. If accepted, this could cooperation is not about
indicating ample headroom for provide a boost. Still, it is unlikely
growth. The government is that diesel would benefit from a
surviving change but
planning to increase the number of potential slowdown in demand for shaping it positively.
CNG stations to 8,000 by 2024. CNG. The next phase of BS VI
Indraprastha Gas Ltd, the largest norms would make diesel vehicles
CNG retailer, has plans to invest costlier. Meanwhile, the number of
₹8,000 crore in the next five years CNG models would only go up.
S. JAISHANKAR
to expand its city gas network. This While petrol will remain the fuel EXTERNAL AFFAIRS
alone would translate into more of choice, CNG may upstage diesel MINISTER
than 400 new stations. as the next in line as early as FY24.
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PLAIN FACTS
2022 was bumpy, but

don’t forget the rules
BY DEEPA VASUDEVAN
I n the world of investing, one dictum is universally accepted: equity earns returns, and debt provides safety. This was
challenged in 2022, when both equity and debt prices crashed in advanced economies, leaving investors with neither
returns nor safety. India did somewhat better: While MSCI’s emerging markets and global indices dropped 18.9% and
16.6%, respectively, MSCI India has earned 3.8% so far. Nevertheless, India’s returns were lower than what one would expect
for one of the fastest growing economies in the world.
It’s been a topsy-turvy year, as a comparison of holding period returns for various asset classes shows. A classic 60:40 Indian
portfolio (60% equity and 40% debt) yielded barely 5.6%, with equity contributing 7.2% and debt 3.1%. Adding gold to the
mix pushed it up 5.9%. None of these combinations beat inflation, and each exhibited volatility. In contrast, a simple bank
fixed deposit (FD) enjoyed a neat 5% return, not much lower than equity. And as an additional bonus, the FD holder also
avoided stock market gyrations—not to mention the heartache of watching bond prices erode with each rate hike.
In general, returns from equities and bonds do not move together. The exception—as 2022 was—happens when monetary
tightening is steep enough to depress bond values as well as equity valuations. India’s benchmark repo rate has gone up by
2.25 percentage points this year, but the resulting drop in liquidity and increase in cost of funds has ensured that the effective
tightening in financial conditions is considerably higher.
Most standard portfolios generated Financial conditions have tightened

negative real returns in 2022 significantly in this rate hike cycle
Returns in 2022 for ₹100 invested on first trading day (in ) All figures in %
120 Bonds Equities Gold SBI FD Key rates* Before Now
Portfolio 1 (60:40) Portfolio 2 (50:30:20)
Repo rate 4 6.25
MSF rate 4.25 6.5
115
₹/$ spot rate 74.3 82.21
107.2 Market rates**

110
106.9 Call money rate (weighted average) 3.32 5.84
105.9 91-day T-Bill yield (primary) 3.36 6.44
105 105.6
105 364-day T-Bill yield (primary) 4.27 6.88
103.1 10-yr G-sec par yield 6.47 7.32
100 Forward premia ($, 1 month) 3.96 2.35
Data for scheduled commercial banks

95 1-yr median MCLR# 7.25 8.05
Term deposit rate* (> 1 year) 4.90-5.6 6.10-7.25
Year-on-year credit growth## 9.81 15.99
90
Year-on-year deposit growth## 12.17 9.6
*As of 9 Dec 2022 vs as of 31 Dec 2021.
**For week ending 18 Nov 2022 vs week ending 31 Dec 2021
85
3 Jan 2022 6 Dec 2022 #Nov 2022 over Dec 2021
##Fortnight ended 18 Nov 2022 vs fortnight ended 31 Dec 2021
Portfolio 1: 60% equity, 40% bonds; Portfolio 2: 50% equity, 30% bonds, 20% gold.
MCLR: marginal costs-based lending rate
Data till 6 December.
Source: NSE India, CCIL, Investing.com, SBI Source: Reserve Bank of India
Top Factor India-US inflation gap flipped this year

as prices rose steeply in the US
THE UNDERLYING reason for the global monetary Year-on-year rise in consumer prices (%)
tightening is, of course, inflation. In the decade to 2021, 12
inflation in the US was mostly below its 2% target, while India
US
often experienced spikes beyond its target 4-6% range. 10
As a result, inflation in India was higher by an average of 4%. Average US-India
8 inflation gap*
This relationship flipped in 2022, as prices rose much more
steeply in the US, with rising inflation volatility making it even 6
more critical for the Federal Reserve to continue tightening. India
4
Inflation data for October suggest a softening in prices for
both India and the US, which has led to market rallies in the 2
expectation of a pause in tightening.
In its December monetary policy, the Reserve Bank of India 0
Jan 2012 Oct 2022
forecast a decline in inflation to 5.4% by the second quarter of *The average gap between the US and India inflation rates was
2023-24. 4 percentage points from January 2012 to December 2021.
If macro conditions evolve towards this outcome, it would Source: Federal Reserve Bank of St. Louis database (US),
boost equity and bond markets. Ministry of statistics and programme implementation (India)
The chief pillars of world GDP are

expected to slow down next year
Slowdown Effects
Deviation in GDP growth rate, 2023* (%) ALL THREE of the biggest contributors to world GDP—the
(circles sized by GDP#) US, China and the EU—are expected to slow from their long-
term trends in 2023, with some predicting a recession for the
-2 -1 0
US. This will impact India in several ways. A slowdown will hurt
exports, which are already under stress. In 2021-22, 40% of
India’s exports went to North America and Europe. As
Spain production and incomes in these economies slow down, they
0.2 will cut back on imports of raw materials and finished goods.
China
US -3.3 Risk-averse foreign investors may hold back unless there are
-1.3 India sufficient “pull” factors in the form of resilient domestic
-0.8 demand or structural economic reforms. Large-scale tech lay-
Brazil
-0.4 offs are likely to swell the ranks of the urban unemployed,
which may depress salaries and spending. In sum, a global
*Difference between 2023 projection (IMF) and average growth during slowdown leads to a poor outlook for corporate earnings. This
2010-2019. #2015 constant US$. Map shows countries contributing 75% could depress equity returns unless compensated with robust
to world GDP.
Source: World Bank, IMF, Author's calculations domestic growth.
Going Forward Most asset classes are volatile, but a

diversified portfolio delivers reliably
ECONOMIC UNCERTAINTY as a theme may dominate 2023 Returns in various years (%)
as well. None of the factors that could restore market confidence 2018 2019 2020 2021
—a resolution of the Ukraine crisis, a drop in inflation, and the
Housing prices
end of monetary tightening—seem close at this point. Rather,
recent developments such as the price caps on Russian oil, Equity
increased bonhomie between China and West Asia, and rising
Bonds
sovereign defaults among low-income countries have only added
to the uncertainty. Gold
This explains why investors are in a wait-and-watch mode. But Fixed deposit
for the ordinary retail investor, one turbulent year should not call Diversified
for a rewriting of basic investment rules. A well-diversified and portfolio
balanced portfolio yields consistent returns over time. Such a -5 0 5 10 15 20 25 30
portfolio may not deliver the rockstar returns of equity, but it will Diversified portfolio has all five asset classes in the list weighted
equally. Equity refers to Nifty 50. Bonds refer to CCIL bond index.
be more stable than gold, while generating a modest premium Housing prices refer to RBI's quarterly housing price index.
over a bank deposit. Diversification is a theme for all times. Start and end dates in each year may vary based on availability of data.
The author is an independent writer in economics and finance. Source: RBI, CCIL, NSE, Bloomberg, Author's calculations
PARAS JAIN/MINT
PEANUTS by Charles M. Schulz
New DelHI, MUMbAI, bENGALURU, kOLkATA, CHENNAI, AHMEDAbAD, HYDERAbAD, CHANDIGARH*, PUNE* VOL. 16 NO. 297 Rs 5.00 IN DELHI-NCR; Rs 6.00 OUTSIDE DELHI-NCR. PRICE WITH HINDUSTAN TIMES Rs 10.50 (FOR DELHI & NCR) 18 PAGES
Just in time: How Foxconn Slowing growth edges out

livemint.com corrected its India act uP10 inflation as top concern uP8
SENSEX 62,130.57 51.10 NIFTY 18,497.15 0.55 DOLLAR ₹82.54 ₹0.26 EURO ₹87.16 ₹0.29 OIL $74.46 $1.36 GOLD ₹53,752 ₹37
Retail inflation in Nov Dalmia Bharat

to buy Jaypee’s
cement assets
DON’T MISS
eases to 11-month low at ₹5,666 cr EV

Mayur Bhalerao
mayur.bhalerao@livemint.com
Inflation comes below RBI’s tolerance band for the first time in a year MUMbAI
Proxy advisory wants Paytm to
D
ebt-laden Jaypee Group
Saurav Anand has agreed to sell its address concerns before buyback
saurav.anand@livemint.com mUCH-NeeDeD ReSPIte cement business to Dal- Proxy advisory firm Institutional Investor
NEW DELHI mia Cement (Bharat) Ltd at an Advisory Services said the board of One97
Cooling food prices contributed to the overall moderation in inflation, data
Industrial output contracted by 4% hobbled by the drop in orders from enterprise value of ₹5,666 Communications, Paytm’s parent, must respond
from the ministry of statistics and programme implementation showed
the West, softening demand and weak investment at home. MINT crore, the company said. to three areas of concern, including the timing,
R
Year-on-year change in consumer prices (in %) growth strategy and liquidity status, before it
etail inflation eased to an Oct Nov Jaypee has been trying to
11-month low of 5.88% in
November, coming
within the upper limit of
OVERALL INFLATION RATE
WHERE INFLATION EASED

5.88
6.77
7.1
IIP contracts to a reduce debt after State Bank of
India initiated insolvency pro-
ceedings against it for failing to
undertakes a buyback of shares. >P4
Food and beverages Centre steps in as airports

the Reserve Bank of
India’s tolerance band for the first
time since last December in the wake
Clothing and footwear
Housing
5.07
4.65
10.16
9.83
26-mth low in Oct settle dues of ₹6,892 crore.
It has signed a binding frame-
work agreement with Dalmia to
choke with record traffic
The civil aviation ministry on Monday issued
of a flurry of interest rate hikes. 4.57 sell its cement, clinker, and guidelines to manage congestion at airports
Cooling food price inflation con- Saurav Anand & Subhash Narayan expected to slow in October power plants, which have a as passenger traffic touched record levels
WHERE INFLATION ROSE
tributed to the overall moderation in NEW DELHI due to the base effect, the cement capacity of 9.4 million with the onset of the year-end holiday
Pan, tobacco and 1.87
inflation, data from the ministry of sta- intoxicants 2.02 sharp contraction comes as a tonnes per annum (mtpa), season amid capacity constraints at airports
across India. >P5
I
tistics and programme implementa- Fuel and light 9.93 ndia’s industrial output shock. Delving deeper into the clinker capacity of 6.7 mt, and
tion showed. Consumer Price Index 10.62 contracted by 4% in Octo- data shows a broader slow- thermal power capacity of
Miscellaneous 5.9
(CPI)-based inflation was at 6.77% in 6.07 ber, the worst in more than down across segments. How- 280MW. “JAL, the flagship firm,
October and 4.91% last November. Source: MoSPI two years, government data ever, what is specifically worri- is taking steps to reduce debt US to announce scientific
The data on moderating inflation released on Monday showed, some is the continued poor and repay lenders to meet com- breakthrough on fusion energy
follows the increase in repo rate by CAUSE AND EFFECT hobbled by the drop in orders performance of the consumer mitments on a proactive basis,” The US Department of Energy will announce on
35 basis points to 6.25% on 7 Decem- RetaIl inflation eased Data on easing inflation exPeRtS expect from Western markets, soften- durables and non-durables said Manoj Gaur, executive Tuesday that scientists at a national lab have
ber, RBI’s fifth increase in eight to an 11-month low of follows the hike in repo rate another 25 basis points ing demand and weak invest- segment. The slowdown in chairman of JAL. “In this regard, made a breakthrough on fusion energy, the
months. Experts expect another 25 5.88% in November by 35 bps to 6.25% on 7 Dec increase in February ment at home. external demand has also JAL divested over 20 mtpa process that powers the sun and stars that one
basis points increase in February. The Index of Industrial Pro- played a critical role in pulling cement capacity in favour of day could provide a cheap source of electricity,
COMPILED BY TANAY SUKUMAR/MINT; GRAPHIC BY SARVESH KUMAR SHARMA/MINT
The sharp easing in CPI inflation duction (IIP) grew by 4.2% in down IIP,” said Rajani Sinha, UltraTech Cement in 2014 and two sources aware of the matter said.
reflected a base effect led cooling in policy committee for the quarter at ber, dragged down by a 5.6% con- October 2021 and by 3.1% in chief economist at ratings 2017, while selling a controlling
food inflation and a correction in veg- 6.6%, Nayar said. traction in manufacturing output. September 2022. However, company CareEdge. stake of over 2 mtpa cement
etable prices, said Aditi Nayar, chief “How much the CPI inflation In response to the inflation data, October’s IIP number is the According to the ministry of capacity to Dalmia in 2015.” Russia offers to help India
economist at rating agency ICRA. eases further in December will hold the finance ministry said in a social lowest in 26 months and statistics data, manufacturing To repay the loans and con- build large-capacity ships
With the sharp correction in food the key to the monetary policy com- media post that the drastic slowing of comes on the back of poor per- saw a contraction of 5.6%, centrate on its other core areas
Russia has offered to assist India in leasing
inflation unlikely to sustain at a simi- mittee’s February policy decision on retail inflation is mainly due to a sharp formance by the manufactur- while mining and electricity of business, JAL has decided to and building large-capacity ships in a move
lar pace, December inflation is pro- rates, as the contraction in the Index decrease in food prices. The ministry ing, capital goods and con- grew 2.5% and 1.2% each in divest its entire cement busi- that could see exporters cut their expensive
jected at 5.9-6.1%, resulting in an of Industrial Production (IIP) is said consumer food price inflation sumer goods sectors, all criti- October. Consumer durables ness, Gaur added. “With the dependency on foreign shipping lines. The
average CPI inflation for the Decem- expected to be transitory, reversing moderated significantly in November cal to propel growth in the sales, an indicator of demand sale of cement capacity of 9.4 Russian offer follows India’s refusal to join
ber quarter at 6.2%, well below the after the festive holiday period,“ she economy. mtpa, we demonstrated its the price cap on Russian oil. >P2
estimate pegged by the monetary said. IIP had contracted 4% in Octo- TURN TO PAGE 6 “While IIP growth was TURN TO PAGE 6 creditable working,” he said.
Budget may see battery storage Centre may peg railways’

PLI, pumped storage plant policy operating ratio below 95%
HT
Rituraj Baruah & Utpal Bhaskar swered till press time. Subhash Narayan improve its efficiency further,”
NEW DELHI In September, Union minis- subhash.narayan@livemint.com one of the two people cited
ter for new and renewable NEW DELHI above said on the condition of
F
inance minister Nirmala energy R.K. Singh said the gov- anonymity.
T
Sitharaman’s upcoming ernment is working on a PLI he Union budget is The Union budget for FY23
budget speech is expected scheme for grid-level renewa- expected to peg Indian pegged a total rail traffic reve-
Former UIDAI head Nandan Nilekani said it takes many years to to include a range of announce- ble energy storage, which Railways’ FY24 operat- nue growth of 12% over the pre-
bring ecosystems such as Aadhaar and UPI to the point of take- ments aimed at boosting green refers to large-scale energy ing ratio below 95% without pandemic period, but actual
off, but once that is done, the usage spreads rapidly. MINT energy adoption, including the storage solutions. Singh also any significant increase in cen- revenue growth is on course to
highly anticipated production said the government would tral funds, two people aware of comfortably beat the target and
Nilekani: Account linked incentive (PLI) scheme

for battery storage and pumped
storage plant policy for hydro-
invite bids for one of the world’s
largest grid-scale battery
energy storage system projects.
the matter said, as the finance
ministry expects the national
transporter to build on its suc- Railways’ passenger revenue
grow 20% above the revised
traffic earnings for FY22, two
people aware of the matter said.
aggregators make
power. FM Nirmala Sitharaman may He said the only cess of increasing rose 76% to ₹43,324 crore in This, they said, would allow
Sitharaman is expected to unveil a plan to build a 1GW way to cut the cost revenues over the the first eight months of FY23. Indian Railways to target even
unveil a plan to build a 1 giga- battery storage system over of energy storage is past two years. higher earnings in FY24, obvi-
watt (GW) battery storage sys- the next two years. to start local manu- After two pan- mated an operating ratio of ating the need for any substan-
access to loans easy

MINT
tem over the next two years, the facturing and grow demic years that 96.98%, but the actual figure is tial increase in central grants or
people said, seeking anonym- achieve 500GW of installed volume. “That’s curbed mobility expected to be much lower. loans. The railways’ passenger
ity. This would be the largest green energy capacity by 2030 what I am going to do. The PLI, and crimped revenues, railways “The target for the operating revenues rose 76% to ₹43,324
Leslie D’Monte deputy governor of RBI at that such battery storage system in and net-zero carbon emissions which I will come up with, will has registered a sharp increase ratio for FY23 is around crore in the first eight months
leslie.d@livemint.com time and was one of the principal the world. by 2070, the coming Union be only for grid-level storage,” in freight and passenger traffic 96.98%. With marked of FY23, while freight earnings
bENGALURU architects of this regulation. The The PLI for battery storage is budget in February is expected Singh said. this year, underlining the opti- improvement in revenue and grew 16% to ₹1.05 trillion.
apex bank essentially created a part of the energy storage pol- to include announcements for He also emphasized that lith- mism at North Block. check on subsidies and other Queries sent to spokespeo-
N
andan Nilekani, the techno-regulatory framework icy prepared by the govern- round-the-clock renewable ium-ion batteries would not be The operating ratio is the non-essential expenditures ple for the ministries of finance
co-founder and non-ex- along with the right APIs, (appli- ment. “Even if the energy stor- energy supply, with a focus on the preferred technology for ratio of the amount spent to during the year, the operating and railway remained unan-
ecutive chairman of cation programming interfaces), age policy comes before the storage solutions. grid-level storage and that earn every ₹100. A lower oper- ratio is expected to fall further swered till press time.
Infosys Ltd and the former to build a fully digital and highly budget, the PLI is likely to be Queries sent to spokespeo- other chemistries would be ating ratio means the railways in FY24 to below the 95% level. A former Railway Board
chairman of the Unique Identifi- scalable AA framework. AA has mentioned in the next budget,” ple for the ministries of new explored. gets to spend more of its earn- This will also allow the railways chairman said on the condition
cation Authority of India been approved at the FSDC one of the two officials said. and renewable energy, power ings on its large capex projects. to deploy funds in key infra-
(UIDAI), is a leading advocate for (financial stability and develop- As part of New Delhi’s plan to and finance remained unan- TURN TO PAGE 6 In FY23, the Union budget esti- structure projects that help to TURN TO PAGE 6
the Account Aggregator (AA) ment council) level; so, all finan-
framework in the financial sec- cial regulators (in India) are
tor. With an AA, people can aligned with it.
securely and easily share their You have likened AA to the
financial data with authorized unified payments interface
entities, such as banks, to obtain (UPI) of data. What hurdles
Shah Rukh Khan Jr. & a devil-may-care bet on premium liquor
loans without using assets as col- need to be overcome, includ-
lateral. ing interopera- Suneera Tandon & market the product in India and space. And when there’s a void, devil, is available in Maharash- whisky, brandy and dark rum
The frame- m INTERVIEW bility, reliabil- Gaurav Lagathe global markets. there’s an opportunity, and I tra at ₹5,000, as well as Goa at have been major contributors
work aims to ity of networks, Slab Ventures will also think businesses are all about ₹4,000 and Karnataka at to the overall alcoholic bevera-
improve access and a grievance MUMbAI launch more products across opportunity,” Khan, who ₹6,500. The brand will soon be ges market in India, cornering
to financial services and redressal mechanism? other premium consumer seg- recently announced his direct- available in Delhi and top cities over 90% of all Indian-made
A
empower individuals to take Building a national ecosys- ryan Khan, son of Bolly- ments, including beverages, orial debut, said in an interview of Uttar Pradesh, Haryana, foreign liquor (IMFL) volumes.
control of their finances. tem of this size does take time wood superstar Shah both alcoholic and non-alco- in Mumbai last week. Khan is a West Bengal and Telangana. It White spirits such as vodka and
In an interview, Nilekani because there are many moving Rukh Khan, is making holic, apparel, and accessories, graduate of the University of will compete with Bacardi’s gin, on the other hand,
emphasizes the importance of parts. That said, all the challen- his foray into India’s lucrative and conduct experiential Southern California. Grey Goose and LVMH’s Bel- accounted for 3.6% of the total
making credit, commerce, and ges you described are common but heavily regulated liquor events appealing to the coun- “The thought was to kind of vedere. Indian-made foreign liquor
product delivery accessible to to any national ecosystem industry, along with business try’s affluent consumers. combine high quality, a youthful India is one of the world’s volumes. The market for
everyone to create a fair and project. But the general princi- partners Bunty Singh and Leti AB InBev India, which sells disruptive vision, and cool aes- fastest-growing alcoholic bev- imported vodka is even smaller.
equitable foundation for com- ple of interoperability applies Blagoeva. The trio plans to ini- beer brands Budweiser and thetics, and bring it under one erage markets, with an esti- However, the CAGR for
mercial activity. Edited excerpts: here just like any other national tially launch a premium vodka Corona, and Slab will also part- roof, and by doing that, appeal to mated market size of $52.5 bil- imported vodka (2021-26)
project like UPI or ONDC (open brand and expand into the ner to retail more spirit brands, Aryan Khan, son of Bollywood the more mature, discerning lion as of 2020. According to stands at 7.2%, while the ultra-
Are you satisfied with the network for digital commerce). brown spirits market later. including whisky. In 2023, Slab superstar Shah Rukh Khan. consumers as well as the younger ICRIER, a think-tank, the mar- premium segment is growing
progress that AA has made? Of course, everyone has to build Khan and his partners have will also take its vodka brand to generation,” he said. ket is expected to grow at a at 17.8%, according to estimates
The journey of AA has been on the tech and make it work. And launched Slab Ventures, a Neth- other markets in Asia, Europe, ners, met in Germany in 2018 Four years since spotting CAGR of 6.8% between 2020 from industry body IWSR.
for over six years (since 2016) the ecosystem does require a erlands-based luxury lifestyle and North America. and discussed the gap in India’s the opportunity in premium and 2023, The liquor market in India is
when RBI (Reserve Bank of dispute resolution body, which collective which has tied up with Khan, 25, said the business premium and luxury goods and products, the trio has brought However, vodka remains a fast premiumizing, meaning
India) already had an AA regula- is being planned using the ODR the local arm of Anheuser-Busch idea emerged after Singh, Khan services market. D’yavol, a premium vodka relatively small category in consumers, in general, are
tory framework defined at that InBev (AB InBev), the world’s and Blagoeva, all family “We thought there was a imported from Poland. India. That’s because, histori-
time. N.S. Vishwanathan was the TURN TO PAGE 6 largest brewer, to distribute and friends-turned-business part- kind of a void in the current D’yavol, which translates to cally, brown spirits such as TURN TO PAGE 6
02 TuesDay, 13 December 2022
New Delhi ECONOMY & POLICY LIVEMINT.COM
Rajya Sabha clears

Bill to mandate use
Russia offers to help India
of green energy build large-capacity ships
Staff writer
feedback@livemint.com
NEW DELHI
Russia welcomes India’s decision not to support price cap placed by G7 and allies on its oil
T
he Rajya Sabha on Mon-
day cleared the Energy Gold seizures hit a three-year
Conservation (Amend- Ravi Dutta Mishra month, Indian refiners stepped up high of 3,083 kg in Nov. ISTOCK
ment) Bill, 2022 that aims to ravi.dutt@livemint.com their buying of Russian oil by 272,000
make the use of clean energy
mandatory for industry and
NEW DELHI b/d to a record 1.17 million b/d,” S&P
said. Kerala,
R
other sectors. ussia has offered to assist To avoid dependency on the ban on
The development also paves
the way for the setting up of
India in leasing and building
large-capacity ships in a
insurance services and tanker charter-
ing in the European Union and UK,
Maharashtra
carbon markets in the country.
The bill was passed by Lok
Sabha in August.
The move paves the way for
setting up of carbon markets
in the country. ISTOCK
move that could see Indian
exporters cut their expen-
sive dependency on foreign shipping
Novak offered India cooperation on
leasing and building large-capacity
ships, the Russian statement said.
top list of
The Energy Conservation
(Amendment) Bill, 2022 seeks He said the government
lines. The Russian offer follows India’s
refusal to join the price cap on Russian
The executive body of the European
Union has asked its 27 member-coun- smuggled
to mandate the use of non-fossil plans to mandate the use of oil imposed on 5 December by G7 tries to cap the price of Russian oil at
sources, including biomass and
ethanol, for energy and feed-
green hydrogen in sectors like
steel, refineries, fertilizer and
countries and their allies.
“The Deputy Prime Minister (Alex-
$60 a barrel as part of the West’s
attempt to squeeze Moscow’s oil reve-
gold seizures
stock, along with the use of cement industries, through ander Novak) welcomed India’s deci- nues and limit its ability to wage war in
green hydrogen and green green hydrogen consumption sion not to support the price cap on Ukraine while keeping global prices PTI
ammonia. obligation. The obligation tar- Russian oil, which was imposed on and supplies steady. From 5 December, feedback@livemint.com
The bill proposes to enhance get would be set by a body December 5 by the G7 countries and western shipping and insurance com-
G
the scope of the Energy Con- headed by the cabinet secre- their allies,” the Russian foreign minis- The Federation of Indian Export Organisations has been lobbying the government panies are prohibited from handling old seizures by
servation Building Code and tary. Talking on India’s green try said in a statement. to set up an Indian shipping line of global repute. Russian oil sold above the price cap. enforcement agencies
bring large residential build- hydrogen plans, Singh said: “It To be sure, the Federation of Indian At a meeting, India and Russia noted have hit a three-year
ings within the ambit of the is forward looking, it is futuris- Export Organisations has been lobby- decline in net profit to Rs 124 cr in the b/d,” S&P Global’s chief geopolitical the record growth in bilateral trade and high of 3,083 kg in November
energy conservation regime. tic. We are keeping up with the ing the government to set up an Indian quarter ended September. risk advisor said in a note. expressed the desire to continue this this year, with Kerala
Around 36 members of the world. In fact, we are leading shipping line of global repute, saying “Concurrent restrictions on G7 Russia’s seaborne crude exports interaction, increasing cooperation on accounting for the most cases
Rajya Sabha took part in the the world.” The minister said Indian exporters have been largely insurance and financing, a delayed roll- were little changed in November at just trade in energy resources, such as oil, of seized smuggled gold, Par-
discussion on the bill on Mon- Indian industry has the poten- dependent on foreign shipping lines. out of the price cap, and Russia’s aver- over 3 million barrels per day (b/d) after petroleum products, liquefied natural liament was informed on
day. Replying to the discussion tial to invest to set up capacity India repatriated over flows to India surged to a gas, coal and fertiliser. Between April Monday.
on the bill, power minister RK for 25 million tonne of green $80 billion in transport COST OF WAR record high, absorbing and September, India’s exports to Rus- Gold seizures across the
Singh said that India has the hydrogen capacity. services in calendar year barrels displaced from sia stood at $1.29 billion, compared country have gone up this
potential of emerging as the “We are relentlessly march- 2021, it said. THE executive body WESTERN shipping FOR the second Europe where imports with $3.25 billion during the last finan- year when compared to 2,383
leader in new areas of green ing ahead towards our target of Mint has previously of EU has asked its 27 and insurance cos
member countries are prohibited from
month in a row in
Nov, Russia has
sank to all-time lows cial year. kg seized in the 2021 calendar
buildings and green hydrogen. reducing India’s carbon inten- reported that the govern- to cap Russian oil handling Russian oil remained India’s ahead of the European Imports from Russia, however, have year and 2,154 kg in 2020. In
He said that currently 24% of sity by 45% by 2030. The pas- ment is working on a pro- price at $60 a barrel sold above price cap top oil supplier Union’s 5 December grown fivefold in the first five months 2019, 3,673 kg of gold was
energy consumption is from sage of Energy Conservation duction-linked incentive import ban and G7 price of the fiscal to $17.23 billion. Russia has seized.
the housing sector and that the (Amendment) Bill, 2022 in scheme for manufactur- cap, S&P Global Com- for the second month in a row In 2022 (up to November),
government has targeted only Rajya Sabha today paves the ing shipping-grade containers. Disin- sion to selling into western policy con- modity Insights said. remained India’s top oil supplier in 3,083.61 kg of gold was seized
big commercial establishments way to enhanced use of renew- vestment-bound Shipping Corpora- straints will combine to create an initial “While Russian crude flows to the November, according to energy cargo in 3,588 cases.
having a load capacity of able energy,” said a tweet from tion of India Ltd, once India’s largest shortage of ships and buyers required EU slumped 308,000 b/d to average a tracker Vortexa. In Kerala, 690 kg of the yel-
100KW under the bill. the office of RK Singh. shipping company, reported a 48.81% to re-route roughly half of the 2 million record low of 464,000 b/d in the With inputs from PTI . low metal was seized in 948
cases in 2022, up from 587 kg
in 2021 and 406 kg in 2020. In
2019, 725 kg was seized.
RBI inflation report to remain classified GST evasion of ₹23,000 cr by Besides Kerala, states
which account for high gold
seizures this year are Maha-
PTI
gaming cos under investigation national level and pandemic-
induced supply demand imbal-
rashtra (474 kg in 484 cases),
Tamil Nadu (440 kg in 809
cases) and West Bengal (369
ances have caused a rise in the kg in 214 cases).
PTI
T
he government on Mon- inflation rate worldwide, Minister of state for finance
day ruled out making including in India. feedback@livemint.com Pankaj Chaudhary said cus-
public the RBI report The Russia-Ukraine conflict toms field formations and the
G
detailing the reasons why the has exacerbated the inflation- ST evasion of about Directorate of Revenue Intel-
central bank could not keep ary pressures in crude oil, gas, ₹23,000 crore by ligence (DRI) keep constant
inflation within the targeted 6% metals and edible oils (sun- gaming companies vigil and take operational
upper limit for three consecu- flower), he said. between April 2019 and measures, such as passenger
tive quarters. Further, he said, the onset of November 2022 is being profiling, risk-based interdic-
“RBI has furnished a report heat waves and uneven rainfall investigated by the tax offi- tion and targeting of cargo
to the central government, as in the latter part of the mon- cers, minister of state for consignments, non-intrusive
mandated under Section 45ZN soon season has led to crop finance Pankaj Chaudhary inspection, rummaging of air-
of the RBI Act, 1934 and Regu- damage and a rise in vegetable said on Monday. craft and coordination with
lation 7 of RBI Monetary Policy prices. In a written reply to a ques- ED has attached proceeds of crime of more than ₹1,000 crore in other agencies to deter gold
Committee and Monetary Pol- Recently, inflation had come tion in the Lok Sabha, the min- several cases. ISTOCK smuggling.
icy process Regulations, 2016,” The central bank could not keep inflation within the targeted 6% down to 6.77% in October ister said the Enforcement Last week, addressing the
minister of state for finance upper limit for three consecutive quarters. HT 2022. Directorate has attached pro- “The estimated evasion of been filed before the Special officers of the Directorate of
Pankaj Chaudhary said in a The prices of major essen- ceeds of crime of more than GST by these companies works Court PMLA. Revenue Intelligence, finance
written reply. RBI had to give an explanation In August 2016, the central tial commodities are moni- ₹1,000 crore in several cases out to ₹22,936 crore, relating Further, assets amounting to minister Nirmala Sitharaman
These provisions of the RBI to the government. government notified 4% CPI tored by the government on a related to cyber and crypto to the period April 2019 to ₹289.28 crore have been seized said that smuggling of gold
Act and regulations therein do The retail inflation based on inflation as the target for the regular basis and corrective asset frauds where online November 2022,” he said. under section 37A of the For- “seems to have its own cycle”
not provide for making the Consumer Price Index (CPI) period from 5 August, 2016 to 31 action is taken from time to gaming has been In cyber and eign Exchange Management irrespective of customs duty.
report public, he said. was 7.41%in Sep- March, 2021 with time, he said, adding, several used for siphon- Assets crypto asset Act, 1999, the minister said. She had also asked intelli-
The average inflation was tember. The six- Average inflation the upper toler- supply-side measures have ing the proceeds. amounting to frauds. as of 6 To a query on whether the gence officers to study if there
above the upper tolerance member MPC was 6.3% ance limit of 6% been taken by the government About evasion ₹289.28 crore December, pro- Income Tax Department has is a pattern and relationship
level of the inflation target, headed by Gover- during the and the lower tol- to address inflation and to of Goods and Ser- have been ceeds of crime of issued notices to gaming com- between imports and smug-
that is 6% for 3 consecutive nor Shaktikanta Jan-Mar quarter, erance limit of 2%. ensure that the poor do not vices Tax (GST), more than ₹1,000 panies for non-payment of tax, gling.
seized under
quarters during January-Sep- Das factors in On 31 March, have to bear the extra financial Chaudhary said crore had been Chaudhary said the informa- In July, the import duty on
7.3% in Apr-Jun section 37A
tember. retail inflation 2021, the central burden. the Central Board attached, seized tion is not available since no gold was hiked to 12.5% from
Average inflation was 6.3% while deciding and 7% in the government These included a reduction of Indirect Taxes of FEMA, 1999 or frozen under specific identification code for 7.5% to ease pressure on the
during the January-March the bi-monthly Sep quarter retained the infla- in excise duty by ₹8 per litre on and Customs the provisions of online gaming entities is availa- domestic currency and
quarter, 7.3% in April-June monetary policy. tion target and the petrol and ₹6 per litre on diesel (CBIC) has initi- the Prevention of ble in Income Tax Returns. dampen imports.
and 7% in the September quar- Since May, the tolerance band for on 21 May, prohibition of ated investigations against Money Laundering Act, 2002 “The disclosure of informa- Gold imports rose 33% to
ter. RBI has raised the short-term the next five-year period from 1 export of wheat products, some gaming companies, (PMLA). tion about specific taxpayer is $46.14 billion in 2021-22.
It was the first time since the lending rate (repo) by 2.25 basis April, 2021 to 31 March, 2026. imposition of export duty on including online gaming Also, 10 prosecution com- prohibited except as provided India is the world’s second-
monetary policy framework points, taking it to a nearly Chaudhary said soaring rice, reduction in import duties firms, located in India as well plaints (PCs), including two under section 138 of the Income largest consumer of gold after
came into effect in 2016 that three-year high of 6.25%. commodity prices at the inter- and cess on pulses. as abroad. supplementary PCs, have Tax Act, 1961,” he added. China.
McDonald’s to hire, double

m MINT SHORTS on Monday said Goods and Services Tax (GST) claims of
state governments will be cleared once she gets the rele-
vant papers along with a certificate from their respective
Net direct tax collection
grows 24% to ₹8.77 trillion stores in North, East India
CORRECTIONS AND
CLARIFICATIONS
accountant generals. She also said in the Lok Sabha that Guwahati: Quick service Mint welcomes comments,
India imports coal worth the central government is committed to paying all GST restaurant McDonald’s India suggestions or complaints
compensation to states and has been doing so regularly (North and East) said it will about errors.
₹2.3 trillion in Apr-Sep FY23 for the last five years. PTI hire around 5,000 people as
Readers can alert the
New Delhi: India imported 131.92 million tonnes (MT) it looks to double its outlets to
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of coal worth ₹2.3 trillion in April-September period of cross 300 restaurants in the paper by emailing us, with your
the ongoing financial year. In ₹36,145 cr spent under CSR by region over the next three full name and address to
FY22, the country’s coal year. It rolled out its largest
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worth ₹2.28 trillion, coal New Delhi: A total of ₹36,145 crore has been spent by ft with a capacity to serve 220 people at a time. PTI It is our policy to promptly
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minister Pralhad Joshi said in various companies across the country to carry out devel- Readers dissatisfied with the
the Rajya Sabha. The coal opment activities as part of their corporate social response or concerned about
import was 215.25 MT in responsibility (CSR), Union finance minister Nirmala ‘415 mn Indians exited poverty Mint’s journalistic integrity may
FY21, 248.54 MT (FY20), the Sitharaman said. While
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under as CSR by companies 24% to ₹8.77 trillion in the April-November period New Delhi: 415 million people were lifted out of poverty asktheeditor@livemint.com
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‘GST claims to be cleared after ₹18,473.41 crore was spent in Monday. This represents 61.79% of the full-year said citing UNDP data. The data was based on National Conduct that governs our
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AG certificate is received’ said during the Question FY2022-23. PTI years from 17 June 2019 to 30 April 2021 due to delays
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LIVEMINT.COM DEALS, TECH & STARTUPS TuesDay, 13 DecemBeR 2022
New Delhi 03
m MINT SHORTS
Java Capital launches ₹75 cr seed
‘India Inc. keen to take EXPERT
VIEW
stage fund with greenshoe option
Seed-stage focussed venture capital firm Java Capital on Monday
launched its first fund with a corpus of ₹75 crore, and a greenshoe
option of ₹25 crore. The fund has marked the first close at ₹30
large, inorganic bets’ St e wa r t L a n g d o n
Respond to this column at

crore, and expects to do a final close in the next six months. The Swaraj Singh Dhanjal
fund will reserve 50% of its capital to make follow-on investments
in top performing portfolio companies. MALVIKA MALOO
swaraj.d@htlive.com
MUMBAi INSURTECH ENJOYS
M AN INDIAN SUMMER
erger and acquisition
Govt IT spending to reach (M&A) activity in India has
surged to a record of about
$589 bn next year: Gartner $175 billion this year driven
ISTOCK
A
by large deals by corporates decade ago, insurance executives lived a charmed life. The
and buyouts by PE firms. This comes at a industry operated more like a private club than a competi-
time of volatile stock markets and a down- tive industry, with its own rules and its own jargon. Occa-
turn in the technology sector. In an inter- sionally, an expensive catastrophe or the regulator’s unhelpful
view, investment bank Moelis India’s chief insistence on ethical practices would interfere, but mostly they
executive Manisha Girotra talks about the enjoyed plain sailing.
various factors that are driving dealmaking A few years ago, an anxiety began to take hold. Industry veterans
in India. Edited excerpts: began to speak in hushed tones of an upcoming wave of “insur-
tech”, involving tech-enabled business models that would sweep
How do you see the M&A activity shap- away their comfortable sinecures as surely as digital photography
ing up in the coming year? Will corpo- undermined Kodak. The executives did what they could to digitize
rates give a tough fight to PE funds their own business models, but mostly they braced for impact.
which are sitting on large sums of dry As time went on, there were only a handful of success stories.
New Delhi: Government spending on IT is expected to powder? China’s ZhongAn became a $10-billion behemoth (although only
grow 6.8% in 2023 to reach $588.9 billion, according to Indian M&A stands at $175 billion in by taking easy business from its parent Alibaba). India’s Policyba-
Gartner, which attributed it to ongoing modernization of 2022 YTD. Private equity and venture cap- sheets are looking aggressively at consoli- diaspora. With the launch of OCEN, incum- zaar became an independent success and is now a multi-billion dol-
legacy systems and improving access to digital services. ital contributed around $65 billion of this dation themes across existing sectors and bent banks will face disruption as lending lar listed company. But few insurtechs scaled to a meaningful level.
Software will be the fastest growing segment, posting a number and the balance was largely Indian looking to foray into new sectors. For exam- becomes more cash flow based and this will Google failed with an eccentric venture into the Indian price com-
12.5% rise, while IT services will grow at 7.9%. SOHINI BAGCHI corporates merging or acquiring other ple, Vedanta formed a JV with Foxconn to also lead to M&A opportunities. With the parison market. When US firm Lemonade lost 70% of its value after
businesses in India. This demonstrates that enter the semiconductor sector, while launch of ONDC, the e-commerce sector listing, it seemed as if the threat of insurtech had been exaggerated.
the Indian corporate sector is keen to take Adani acquired Holcim’s India assets to will face disruption as more businesses But now an insurtech revival appears underway, and it is India and
Data platform Contlo raises large inorganic bets to increase their mar- enter the cement sector. I see a 50:50 split move from unbranded to branded seg- her entrepreneurs that form the epicentre of this transformation. An
ket share in a growing economy. between corporates and private equity in ments, and more sellers and buyers meet on example is InsuranceDekho. The business has reinvented the con-
from Kae Capital, others
‘
Going forward, there are three themes the M&A game in the next few years. a neutral platform. This will lead to cept of a traditional insurance agency through a digital platform that
New Delhi: Artificial intelligence-backed customer data and which will drive M&A in India: A play for Given the slowdown in acquisitions and consoli- allows customers to choose products from almost any insurance
marketing platform Contlo, on Monday said it has raised seed scale and dominance, to take advantage of tech funding, do you dation in the retail sector. company in India. Historically, insurance agents were tied to a single
funding of $3.5 million (around ₹29 crore) led by early-stage ven- disruption and lastly, the transition to more see a wave of consoli- Large Indian Pharma and health- insurance company, seriously limiting customer choice. Policies sold
ture capital firm Kae Capital. The round also saw participation sustainable business models. Large Indian dation in the sector in conglomerates will care sectors have seen on InsuranceDekho’s platform are serviced digitally without the
from existing backers Better Capital and Titan Capital, with angel conglomerates will continue to play for the coming days? continue to play a rise in buyout activity cumbersome paperwork and delays that used to characterize the
investors like Harshil Mathur and Shashank Kumar (Razorpay), scale and Yes, the tech sector post covid. What’s driv- industry. No surprise that the company is growing at pace, and gener-
Varun Alagh (Mamaearth), and Giridhar Malpani (Climber Capi- for scale and size and ing this rush of asset
tal), among others. SHUBHOBROTA DEV ROY
m INTERVIEW size and are
willing to
should see consolidation
with large groups like are willing to pay a sale in these sectors?
ating annual premiums of ₹2,000 crore, while creating livelihoods
for some 70,000 agents in the tier 2 and 3 towns in which it thrives.
pay a pre- Reliance, Tata, Adani, premium for it The Indian generic India also has two new digital-first
mium for it as greenfield gets more expen- Flipkart acquiring busi-
Manisha Girotra
industry is the factory to Despite years of insurance underwriters. Digit began in
In-Med Prognostics raises sive. Structural reforms like ONDC (open nesses which have good Moelis India’s chief executive the world, sized at $100 progress, 92% of 2016 and generates ₹5,300 crore of pre-
network for digital commerce), OCEN business models but are billion, and expected to miums in motor and health segments,
$2.13 mn from angel investors (open credit enablement network) and digi- strapped for cash. We will grow in double digits risks that and is valued at over ₹32,000 crore.
Bengaluru: Healthtech startup In-Med Prognostics has raised tization of the logistics sector will challenge also see consolidation within the sector annually. In addition to exporting generics should be Acko—an Amazon-backed rival—
$2.13 million led by investment firm Exxora, along with other old business models. This will also lead to with larger, well-capitalized companies to the world, the domestic formulation insured in India clocks some ₹990 crore of revenue.
angel investors. The Pune-based company plans to use the fresh consolidation in the physical and online buying out smaller companies which have market is also growing rapidly. With the are not But, why the resurgence of insurtech
capital to expand its product portfolio and tap global markets. business models to provide the consumer a differentiated business model, a set of pandemic and the launch of Ayushman businesses? First, the Indian insurance
In-Med Prognostics uses machine learning to provide analysis with an end-to-end solution. The transition customers, or a unique technology but Bharat Digital Mission, healthcare spend- market is enormous. The combined life,
which aids in assessment and early detection of neurological dis- to sustainable business models in the need capital. ing will increase. Governance is high in this general and health insurance markets total a staggering $130 bil-
orders such as dementia, Alzheimer’s and Parkinson’s at afforda- energy and EV spaces will lead to a number Fintech will lead the wave of consolida- segment and government intervention is lion and, yet with penetration still low, the growth opportunity
ble prices. The company also provides ethnicity-specific assess- of opportunities. Indian corporates with tion as financial services need large low. Hence private equity has and contin- remains effectively infinite. At the same time, state-owned insur-
ment reports. K AMOGHAVARSHA their strong and well-capitalized balance amounts of capital to cater to the Indian ues to invest in this sector. ers, traditional companies and vested interests still dominate, leav-
ing this vast market ripe for disruption.
Second, Insurance Regulatory and Development Authority (IRDA)
chairman Debasish Panda has been both vocal and effective in his
Retail investors lead Sula IPO to Faad set to launch ₹300 cr AIF support for the move to digital, as he seeks to make insurance more
affordable and inclusive. This has included mandating the demateri-
alization of all insurance policies, insisting on e-KYC and even prepar-
28% subscription on Day One Malvika Maloo

malvika.maloo@livemint.com
addition that technology-led
innovation can bring to society
ing its own digital insurance exchange in the form of BIMA Sugam.
Finally, the industry enjoys a deep sense of purpose. Despite many
years of progress, 92% of risks that should be insured in India are not,
BENGALURU and are always on the lookout a phenomenon known as the protection gap, and 75% of people either
Malvika Maloo BSE data. Investors bid for 5.23 Securities are the book running to back entrepreneurs who can do not have health insurance or have coverage that is totally inade-
A
malvika.maloo@livemint.com million shares on the first day lead managers. ngel network Faad Net- lead the disruption,” said quate. Put simply, low- and middle-income Indians are forced to lead
BENGALURU against the 18.83 million shares Sula raised about ₹288 crore work Pvt. Ltd said on co-founder Karan Verma. risky lives where adverse events, such as hospitalization or accidents,
on offer. from anchor investors, ahead of Monday it has received “We are gearing to launch can be financially devastating. The ability of insurtech firms to solve
T
he initial public offering The retail portion was sub- the IPO, on Friday. The com- approval from the Securities the AIF and see it as a strong for this is essential to reducing inequality and enabling India’s rise.
(IPO) of India’s largest scribed the most—about 48%— pany produces 56 labels of and Exchange Board of India force that will fuel young start- The new cadre of businesses that are benefiting from these tail-
wine producer Sula garnering bids for 4.5 million wines across 13 brands at its (Sebi) to launch a ₹300 crore ups with the combined ener- winds will deliver enormous benefits for all stakeholders. The
Vineyards received a lukewarm shares, while the non-institu- four owned and two leased pro- category-I alternative invest- The fund will focus on gies, support and capital from IRDA will find that the digitization of the industry makes it easier
response on the first day of bid- tional portion was subscribed duction facilities in ment fund (AIF). healthtech, agritech, our growing network of inves- to track, bringing some of the old challenges out of the darkness
ding on Monday. 18% or 0.73 million shares. Maharashtra and Kar- Faad will invest the deeptech, and the cleantech tors.” and into the light. For talented individuals, insurtechs provide
The company, backed by Qualified institutional buy- nataka. capital from its latest space. ISTOCK So far, Faad has invested over attractive places to make a career. Most importantly, customers can
investors such as Verlinvest ers haven’t submitted any bid Sula had recorded angel fund in early- ₹75 crore in over 60 startups look forward to products that have their best interests at heart from
Group, Cofintra S.A, Haystack so far. Sula has offered more a revenue from operations of stage pre-seed to Series A tech- size of $100,000 to $500,000. across tech sectors. Its portfolio an industry that was once famous for putting itself first.
Investments, Saama Capital III than 26.9 million shares in the ₹453.92 crore in FY22 and a net nology companies. Faad is looking to invest in 75 to includes startups like Blu That India is surging ahead of other countries in this area should
and SWIP Holdings, is looking OFS at a price band of profit of ₹52.14 crore during the The firm is focusing its 100 startups through the fund, Smart, Battery Smart, Hesa, be a matter of pride. It may be winter for insurance veterans, who
to raise up to ₹960 crore from ₹340-₹357 apiece. The issue period. It earns over 80% of attention on sectors such as it said. WCube, Cleardekho, Huviair, still rely on outdated traditional practices, but for the rest of us, an
the IPO. About 28% of the will close on Wednesday. revenue from its own brands, healthtech, agritech, deeptech, “There is a new wave of and Beyond Snacks. The aver- insurtech summer has arrived.
offered size was subscribed by Kotak Mahindra Capital Com- which will continue to be its and cleantech. The latest fund angels, HNIs and VCs who age cheque size is usually Stewart Langdon is a partner at LeapFrog Investments and
the end of day, according to pany, CLSA India and IIFL main focus in the future. will have an average cheque believe deeply in the value $50,000 to $1 million. co-head of South Asian investments.
Behind Damera Ventures, a passion for sports, health and rural jobs
IIMA INVITES APPLICATIONS FOR CONSUMER TECHNOLOGY CHAIR
Malvika Maloo to the ecosystem, through More falls in line with this thematic, choose sectors which NYKAA CHAIR IN CONSUMER TECHNOLOGY
malvika.maloo@livemint.com Damera Ventures, the family sis. So far, Damera Ventures has have social impact, and go IIM Ahmedabad places high value on research and inter-disciplinary contributions in several
priority sectors via specific, purpose-driven thrust groups, areas and research centres. IIMA
BENGALURU office set up with his wife Bhag- made five investments worth beyond investments to support welcomes applications from candidates with distinguished records of research, teaching, and
yashree Damera. $40 million across startups, non-profits too. impact on practice and policy for the Chair position, at Professor / Associate Professor / Assistant
W
hen Ashwin Damera Entrepreneurship, sports funds, and non-profits. “Sometimes, for these entre- Professor levels or industry expert, with a focus on Consumer Technology Management.
returned to India in and wellness, education and The portfolio includes ven- preneurs, especially first-time Required qualifications and experience
2005 from the US, rural employment form the ture debt firm InnoVen Capital, entrepreneurs, having a sound- Doctorate in Management or allied field with a successful track record of research and
he had declined a lucrative job central theme of investments in which it invested about $32 ing board is very helpful,” he publications in the field of Consumer Technology Management and a minimum 12 / 6 / 3
years after Ph.D. (for Professor / Associate Professor / Assistant Professor levels) of teaching/
offer from management con- for the firm. million in April 2022. The firm said noting the start of his research/industry experience.
sulting firm McKin- “These are the has also invested in startups entrepreneurial journey with Expectation
sey, despite knowing areas we are passion- like music education platform Travelguru when he realized As valued members of IIMA, Faculty Chair is expected to contribute in scholarly activities such
that he had to repay ₹1 ate about,” Bhag- Rhapsody. It has given grants to the need and value of support, as producing high-quality research, showing exceptional commitment to teaching, engaging in
crore in student debt. yashree said, who institutions, which include mentoring and network. dialogue with practice and policy, and being proactive members of the community. At Professor
level, candidates will be evaluated on their calibre and demonstrated excellence in their field
Instead, he took a leap of faith manages most of the firm’s Bhagyashree and Ashwin Damera, owners of Damera Ventures. Head Held High Foundation, a He said he wants to provide of specialization, while at Associate / Assistant Professor level, candidates will be evaluated on
and founded Travelguru, an operations. Bengaluru-based collective to support to startup founders, the potential to demonstrate excellence in the future.
online travel startup. Bhagyashree, who also holds a part of national women’s team what it is (inadequate),” he said. help rural people fight poverty. who have to face various chal- For inquiries and applications, contact: dean-fac@iima.ac.in
Within seven years, Damera a masters in food and nutrition, that was selected for the Asian Sports is related to wellbeing Over the years, Ashwin has lenges. Most of the investments Apply by January 15, 2023
sold Travelguru to travel portal was earlier a national-level ath- Games (1982), my father held and happiness, he added. made a few angel investments the firm makes are based on About IIMA: Recognized as India’s top management school and one of the best business
schools in the world, IIMA educates outstanding students. The Institute’s strengths include
Yatra.com and headed to his lete. Ashwin, too, comes from a positions in the national rifle The firm is keen to support that include Ping Digital Net- opportunities that they come a reputation built over six decades of excellence and meritocracy, committed and talented
second venture Eruditus, sports family. “I come from a association of India,” he said. startups solving problems in work, Voxpop, Amelio, Spunk across through their network. faculty, loyal officers and staff, goodwill of recruiters, global diaspora of alumni in positions of
responsibility, and an iconic campus.
which was last valued at $3.2 family of sports. I used to play “I have always been geared the sports segment and its Mobile and Ruban Bridge. But over time, they plan to
billion in 2021. cricket for my city Chennai towards sports and yet, if you investment last month in The route of family office, grow Damera Ventures and IIMA : Educating & Nurturing leaders of Institutions and
Entrepreneurial Organizations
Now, he wants to give back long time back. My mother was look at infra of sports, you know sportstech platform Khelo- however, allows him to be the- hire professional management.
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 PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE
62,130.57 -0.08 18,497.15 0.00 15,828.00 0.10 43,806.90 0.02 18,690.80 0.02 26,173.00 0.30 29,665.37 0.36
PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN
62,181.67 61,770.56 18,496.60 18,402.15 15,812.75 15,759.65 43,798.60 43,798.80 18,687.65 18,605.20 26,095.56 26,045.52 29,558.56 29,530.01
HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW
62,239.42 61,676.15 18,521.55 18,345.70 15,836.85 15,687.95 43,852.80 43,410.60 18,711.20 18,536.45 26,188.42 25,886.29 29,683.62 29,389.95
m MINT SHORTS
Korea strains ease as yields
Will new streams float Right measures aside,
Godrej Properties stock
drop for first time since 2021
Seoul: The strains in South Korea’s credit market showed
further signs of easing, with short-term borrowing costs
falling for the first time in 20 months on Monday. Yields on
Bharat Forge’s boat? will take time to recover
three-month commercial paper — which companies use Vineetha Sampath Harsha Jethmalani
Racing ahead Foreign peril Losing hold
to raise funds for short-term payments like payroll — vineetha.s@livemint.com harsha.j@htlive.com
dropped a basis point in Seoul Monday, which means con- Shares of Bharat Forge have Bharat Forge’s huge dependence on exports Godrej Properties stock has
B
massively underperformed the
C
ditions are improving. That would be the first decline since harat Forge Ltd’s (BFL) plan to outperformed the Nifty 500 makes it vulnerable to risks in these markets. alendar year 2022 has been
index so far in CY22. Nifty Realty index in CY22 so far.
April 2021. The drop underscores the easing of financial diversify its portfolio reflect its Consolidated operating revenue (in crore) tough for real estate compa-
Godrej Properties Nifty Realty
conditions underway after Korean officials in October intent to lower the component Bharat Forge Nifty 500 nies, with the sentiments
Domestic Exports 110
rushed to ring-fence a full-blown crisis in what was consid- of cyclicality in its businesses. 130 towards the sector getting sour as
124.56
ered one of Asia’s safer debt markets. The trouble began The company unveiled BFL home loan rates inched up. But com-
when the developer of an amusement park defaulted. “The 2.0 strategy in an analyst meet held on pany-specific factors have aggra-
100
credit market has generally turned strong since early this Friday. Here, it aims to drive growth via 120 vated the pain for some investors.
month, and even in the CP market, which had shown rela- newer businesses such as defence, elec- Take the case of realty developer
tively slow to recover, demand has recently been growing, tric mobility and castings. 2,654.66 Godrej Properties Ltd. The stock is
90
mainly from high-quality issuers,” said SK Securities ana- The company aims to achieve consoli- 110 down almost 31% year-to-date, while
lyst Yun Won-tae. BLOOMBERG dated revenue compound annual growth the Nifty Realty index has fallen at a
FY 92.86
rate of 12-15% over FY22-30. By FY30, it much slower pace of 7%.
expects to clock an Ebitda (earnings 100 2022 One reason for the stock getting 80
before interest, taxes, depreciation and 105.55 battered is that it had risen quite a bit 69.40
amortization) margin of over 20%. Ebitda 7,806.42 making valuations pricey. The com-
90
margin was around 19% in FY22, but fell pany’s shares hit a 52-week high of 70
to 14.5% in the half-year ended Septem- ₹2,125 on 13 December 2021 and
ber with Europe business facing head- closed at ₹1,299 apiece on Monday.
80
winds. 31 Dec 2021 12 Dec 2022 “Moreover, in the recent quarters, 60
31 Dec 2021 12 Dec 2022
In fact, the dull macro environment in Values rebased to 100 Source: Capitaline Source: Company
the pace of new launches has been
Values rebased to 100 Source: Capitaline
the US and Europe remains a key near- relatively slower than peers and
term concern. This could weigh heavily SATISH KUMAR/MINT
operational performance has been SATISH KUMAR/MINT
on the company’s export business, which (EVs). EVs have more aluminium content demand. These are used in wind energy, muted,” said an analyst, requesting which makes potential project mar-
formed nearly 75% of consolidated reve- and hence would steer growth in both the hydraulics, automotive and power gener- anonymity. gins of more than 30%.
nue in FY22. The export segment is domestic and export segments of its alu- ation sectors. Here, BFL can leverage on He added that with the company That’s not all. With the Kandivali
largely margin accretive and a continued minium forging business. The company JS Autocast’s strength and make the most purchasing land in attractive loca- land acquisition, Godrej also aims to
weakness here is undesired. However, expects this vertical to contribute 40-45% of cross-selling opportunities. tions, some buying interest may strengthen its presence in the west-
the new businesses incubated in the last of overseas sales by 2024. Aluminium BFL’s core business is on a solid footing return in the stock, but the recovery ern suburbs of Mumbai.
The yen-based import price index in November was 5-10 years are at their inflection points forgings currently account for about 25% in the domestic market. Demand for PVs would be gradual. The company’s micro market
28.2% higher than a year earlier. AFP and could dilute weakness expected in its of international revenues. is robust while CV segment is seeing a In November, Godrej purchased selection is improving as strategic
core business, point out analysts at Moti- As things stand, BFL is also supplying strong upcycle. Hereon, successful and two adjacent land parcels in Noida. markets such as Kandivali have lim-
lal Oswal Financial Services. components to EVs globally. Here, it timely execution of the strategies remain Earlier this month, it bought a land ited competition from Grade A
Japan’s wholesale inflation near As such, the company could be a key plans to focus on four key areas – power vital. parcel in Kandivali, developers, pointed out
steady at 9.3% as prices ease beneficiary of the govern- Analysts at Kotak Institu- Mumbai on an outright Godrej’s micro Dolat Capital Market.
Tokyo: Japan’s November wholesale prices rose 9.3% ment’s increasing thrust on GREEnER paSTURES tional Equities believe that basis and this project market selection However, on the flip-
from a year earlier, data showed on Monday, a rate of indigenization in the the BFL stock is adequately has an estimated reve- is improving as side, a faster-than-ex-
increase that was almost unchanged from the previous defence sector. It expects to BhaRaT Forge’s hOWEvER, macro ThanKFULLy, pricing in tailwinds from nue potential of nearly some strategic pected project addition
month and showed initial signs of an inflation peak amid receive orders for advanced core business is on headwinds in export businesses defence and industrial cast- ₹7,000 crore. With this, could push the com-
a strong footing markets such as incubated in last markets have
easing global commodity prices. It was the 21st consecutive towed artillery gun system in the domestic the US and Europe 5-10 years are at ing segments. However, the the cumulative pany’s debt levels
month to show an annual rise in wholesale prices. While from the government by markets are key risks inflection point challenges which the com- expected booking value limited higher. Jefferies has
food and energy costs continued to rise, the data may offer either March or April. It pany may face in ramp- from projects added in competition raised Godrej’s net-debt
some relief for Japan’s economy, which relies almost already has export orders ing-up its business in aero- FY23 has reached to forecast by ₹300-700
entirely on imports for fuel and raw material. The rise in for artillery guns worth $155 million. electronics, traction/drivetrain, mechan- space, e-mobility and light-weighting nearly ₹16,500 crore crore for FY23-25.
the corporate goods price index, which measures prices “Currently unmanned ground vehicle ical and energy storage. While its core segments (which has happened for its ahead of the guidance of ₹15,000 At September end, the company’s
that companies charge each other for goods and services, is being tested by Indian army and the businesses, passenger vehicles (PV) and new business segments in the past) are crore. net debt-to-equity ratio stood at
exceeded market forecasts for a 8.9% percent gain but was company is also developing unmanned commercial vehicles (CV) face risk from being ignored, they added. The timely spurt in business activ- 0.16x. True, this key metric is cur-
slightly below the revised 9.4% annual hike seen in Octo- marine vehicles where the average selling an EV disruption, this threat would have In CY22 so far, shares of BFL have risen ity would aid long-term revenue visi- rently low and cash flows are com-
ber. The index, at 118.5, reached its highest ever level. The price opportunity is 10x,” said analysts at a large impact only in the long run. by 25%, compared to a 6% gain in the bility and margin profile. Analysts fortable. However, in a rising interest
yen-based import price index in November was 28.2% JM Financial Institutional Securities in a Meanwhile, BFL’s recent acquisition, Nifty 500 index. from Jefferies India estimate that rate scenario, investors would not
higher than a year earlier, slowing sharply from October’s report on 11 December. JS Autocast Foundry India Pvt. Ltd, man- The stock is currently near its 52-week cost of land acquisitions is reasonable like debt to inch higher. Needless to
revised annual surge of 42.3%, according to the Bank of Further, BFL is well poised to capitalize ufacturer of high-grade machined ductile high of ₹896.70 apiece. Given this, large (20-25% of saleable value for all-in say, any disappointment on this front
Japan data. REUTERS on the shift towards electric vehicles iron castings, is seeing healthy traction in upsides appear capped. land cost for Noida and Kandivali), would hurt sentiments for the stock.
Mark to Market writers do not have positions in the companies they have discussed here
‘Stocks could revert to RBI sells $33.4 bn in H1 FY23 Macrotech promoters sell shares
10-15% returns in ’23’ to ADIA, others for ₹3,547 crore
PTI
rupee against the greenback hit (8.7%), Philippine Peso (8.5%)
a record high of ₹83.20 per dol- and South Korean Won (8.1%).
lar on October 20, 2022. The The RBI announced various
Reuters PTI
T
he Reserve Bank of India value of rupee is market-deter- measures in the recent period shares for the purpose of
feedback@livemint.com (RBI) net sold $33.42 bil- mined. to expand sources of forex feedback@livemint.com achieving minimum public
lion in the foreign As global spillovers from funding to mitigate exchange shareholding.
T R
he Indian equity markets exchange market in the first six geopolitical tensions and rate volatility, including hike in ealty firm Macrotech “Promoters and members of
could revert towards a months of current fiscal to aggressive monetary policy the external commercial bor- Developers’ promoters the promoter group of Macro-
long-term trend of defend the rupee from exces- tightening across rowing limit to have raised ₹3,547 crore tech Developers have raised
returning 10%-15% on average sive volatility. the world intensi- The exchange rate $1.5 billion and by selling shares to institutional approximately ₹3,547 crore by
in rupee terms next year, Samir The central bank closely fied alongside a of the rupee raising the all-in- investors including ADIA for selling approximately 7.2% of
Arora, founder and fund man- monitors the foreign exchange surge in crude oil against the cost ceiling by 100 bringing down their stake in the equity share capital of the
ager at Helios Capital, told Reu- markets and intervenes only to prices, the US dol- greenback hit a basis points in the company to 75% and meet company through a QIP by way
ters on Monday. maintain orderly market con- lar strengthened select cases up to the minimum public share- of offer for sale,” the company
record high of
Our view is that the U.S. mar- ditions by containing excessive by 7.8% in 31 December holding norm of 25%. The company and promoters said in a regulatory filing on
ket will bottom out in the next volatility in the exchange rate, 2022-23 (till 30 ₹83.20 per dollar 2022, she said. Mumbai-based Macrotech have raised about ₹10,000 cr Monday.
three-four months as most of Samir Arora, founder, without reference to any pre- November), she on October 20 To promote Developers sells its properties of equity in last 20 months.MINT The issue was priced at
the risks around inflation and Helios Capital. BLOOMBERG determined target level or said. growth of exports under the Lodha brand. ₹1,026 as against the floor price
interest rates would be factored band. “During the financial The rupee and support the Last week, Macrotech Devel- promoter group entities — of ₹1,022.75.
in, Arora said in an interview. ers. Helios Capital remains the year, the RBI’s operations have depreciated 6.9% in the same rising interest of the global opers had launched a qualified Sambhavnath Trust, Sambhav- As on September 2022, pro-
Once that happens, the over- most positive on banks and resulted in net sales of $33.42 period, she said, adding, it has trading community in rupee, institutional placement (QIP) of nath Infrabuild and Farms Pvt moters had 82.20% stake in the
hang on Indian markets will consumer companies that cater billion till September 2022 performed better than most the RBI put in place an arrange- equity shares. The issue closed Ltd, Hightown Constructions company and they needed to
reduce and we could see abso- to lower-ticket spending. (settlement basis),” said finance Asian peer currencies, includ- ment for invoicing, payment, on Monday. Pvt Ltd and Homecraft Devel- bring it down to 75% in order to
lute returns as well. “We prefer to play the eco- minister Nirmala Sitharaman. ing the Chinese Renminbi and settlement of exports/ The QIP consisted of an opers and Farms Pvt Ltd. maintain the minimum 25%
“So far, India’s outperform- nomic cycle through banks The exchange rate of the (10.6%), Indonesian Rupiah imports in the rupee on July 11. offer-for-sale (OFS) of shares by The promoters have sold public shareholding.
ance has been relative, but we because they will go in which-
should see a move back to the ever direction the economy
historical average of 10-15% goes and we don’t have to take
returns,” Arora said.
The benchmark S&P NSE
Nifty is up about 6.5% so far this
a call on that,” Arora said.
The clean-up in banks’ bal-
ance sheets over the last few
Paytm board must address concerns before buyback: IiAS
year, compared to a 6% decline years also aids the confidence
in the Dow Jones Industrial in lenders, he added. Priyal Mahtta & – stock surged 7% on Friday growth strategy required fund- liquidity will be sufficient for
Average. While not betting on a large Ranjani Raghavan morning. On Monday, shares ing support in excess of IPO those initiatives.
In dollar terms, however, the capex cycle in the Indian econ- Benguluru/ Mumbai closed at ₹529.6 apiece, down proceeds, the firm said. “What “At the time of its IPO, the
Indian markets are negative so omy, Arora said the fund has 2.75% despite the company has changed for the board to company had announced its
P
far this year, since the rupee has bought into defence compa- roxy advisory firm Insti- reporting robust loan growth of believe that its current liquidity plans to undertake new initia-
declined about 11% against the nies, where there seems to be a tutional Investor Advi- 150% for November. is sufficiently in excess that it tives. It is only once these initia-
U.S. dollar in the same period. government push. sory Services (IiAS) said Broadly, shares are down can be returned to sharehold- tives are rolled out that the
Much of India’s outperform- They are, however, staying on Monday the board of One97 75% since its November 2021 ers?,” IiAS said. board can satisfy itself that the
ance in 2022 has been on away from most traditional Communications Pvt Ltd, the IPO issue price of ₹2,150 per Further, unless the buyback war chest is sufficient. There-
account of domestic money infrastructure companies parent of Paytm, must respond share. price is over ₹2,150 apiece, this fore, the board must articulate
since foreign investors have where the government is the to three areas of concern Paytm had reserve cash of buyback is also likely to benefit how it has determined that the
withdrawn a net of $17 billion so direct customer, he said. including the timing as well its ₹9,182 crore as on 30 Septem- its pre-IPO and employees post-buyback liquidity will be
far from the local markets. “For the first time in our his- future growth strategy and ber, 2022, however, it cannot Paytm board takes up the buyback plan on Tuesday. BLOOMBERG more than investors who came sufficient to meet the unex-
This could reverse next year, tory, we have zero allocation in liquidity status, before it under- use its IPO proceeds for the in during and after the IPO, the pected investments in these
believes Arora. IT,” said Arora. takes a buyback of shares. buyback according to the regu- also yet to report profits –by IiAS said in its note . advisory firm said. new initiatives,” the note said.
The general tendency of for- The slowdown in the global Paytm announced on Thurs- lations. traditional measures and not Secondly, the IiAS note says IiAS also said that Paytm Paytm board will meet today
eign investors, he said, is to buy economy will have a significant day that its board will consider “Why is the board consider- based on the companies pro- that a year ago, Paytm had board must articulate how it to vote on the buyback pro-
India and very rarely have we bearing on their business, lead- a share buyback proposal on ing a buyback at this stage? The posed profitability measures required funding that was in intends to roll out new initia- posal. The exact contours of the
seen two consecutive years ing to earnings disappoint- Tuesday, 13 December. Inves- company is yet to generate pos- that exclude ESOP ( Employee excess of its net IPO proceeds of tives announced at the time of buyback deal are not yet public.
where they have remained sell- ments, he said. tors initially cheered the move itive cash from operations. It is Stock Option Plan) charges,” ₹8,113 crore. At the time its the IPO and if the post-buyback priyal.mahtta@livemint.com
LIVEMINT.COM CORPORATE TuesDay, 13 December 2022
New Delhi 05
Centre steps in as airports KBL shareholders reject

resolution for forensic audit
choke with record traffic PTI
S
hareholders of Kirloskar
Brothers Ltd (KBL) have
rejected a resolution for
Airports must reduce the number of flights during peak hours between 5 am and 9 am forensic audit of the affairs of
the company by an external
agency, according to a regula-
Anu Sharma 150,988 travellers transiting through it tory filing on Monday.
anu.sharma@livemint.com on 10 December. The last recorded On 8 December, an extraor-
New DelhI highest domestic passenger movement dinary general meeting of the
for Mumbai was 1,06,713 on 22 Decem- company’s shareholders was
T
he civil aviation ministry on ber, 2017. convened following requisi-
Monday issued guidelines to International traffic at Delhi airport tion by Kirloskar Industries KIL had demanded that the audit must look into the conduct of
manage congestion at air- is currently hovering at 60-70% of pre- Ltd (KIL) along with Atul Kir- the KBL board, especially the independent directors. ISTOCK
ports as passenger traffic covid levels. Domestic traffic reached loskar and Rahul Kirloskar,
touched record levels with close to pre-covid levels, an airport offi- who together hold 24.92% in since 2016 over the deed of raised questions over corpo-
the onset of the year-end holiday sea- cial said requesting anonymity. Kirloskar Brothers Ltd, amid family settlement for the assets rate governance of KBL.
son amid capacity constraints at air- Recently-launched Digi Yatra facil- the simmering feud between of the more than 130-year-old They were accused of
ports across India. ity is expected to facilitate faster move- Kirloskar siblings. Kirloskar group. insider trading when they sold
According to the ministry, airports ment of passenger traffic at terminals, The ordinary resolution Rahul Kirloskar is the exec- shares of KBL to KIL back in
and airlines must reduce the number of but may have limited impact immedi- was rejected with 63.99% of utive chairman of Kirloskar 2010.
flights during peak hours between 5 am ately as it is valid for domestic flights. votes against it while 36.01% Pneumatic Co Ltd and Atul They had accused KBL of
and 9 am, as part of the action plan. Besides, passengers with check-in lug- were in favour, the filing said. Kirloskar is the executive “mis-utilizing shareholder
Congestion at major airports, such as gage will still have to stand in queues, The resolution had called chairman of Kirloskar Oil resources of a publicly listed
Delhi, Mumbai and Bengaluru, came the official added. for the appointment of an Engines Ltd. company and misusing regu-
into focus after flyers flooded social Deployment of additional personnel independent forensic auditor In October, Kirloskar latory machinery” in the per-
media with complaints of delays due to for immigration, especially during for conducting a forensic audit Industries Ltd (KIL) along with sonal dispute of its chairman &
congestion at entry points to the air- peak hours, is also expected to ease to investigate and verify the Atul and Rahul Kirloskar, had managing director Sanjay Kir-
port and serpentine queues at check-in Long queues at check-in counters and delays in the immigration processes since movement of arriving international expenses incurred by KBL on sought convening of an loskar.
counters, and security clearances as last week led to many passengers missing their flights. HT passengers, he said. legal, professional consultancy extraordinary general meeting KIL had demanded that the
well as delays in the immigration pro- As part of the ministry’s action plan charges over the past six years of shareholders of KBL seek- audit must look into the con-
cesses since last week, which led to machines for security check to 16 from At Delhi airport, airlines must man for Delhi airport, an analysis of man- and the affairs of the company. ing a forensic audit of the duct of the KBL board, espe-
many passengers even missing their 14. It said passengers must complete all counters, especially during peak power requirements at immigration It had also sought investiga- affairs of the lat- cially the inde-
flights. the landing card beforehand for faster hours, the ministry said. counters will be undertaken immedi- tion to verify all records, books ter by an external The ordinary pendent direct-
The ministry issued the guidelines immigration clearance. Similar directives were also issued to ately and, if need be, additional person- of accounts, minutes books, agency. resolution was ors, on whether it
following a ground inspection of the The ministry also directed airport other major airports where air traffic nel will be deployed. and other documents of the They had rejected with has “verified the
Delhi International Airport by aviation authorities to put up digital display has surged, a senior aviation ministry At Mumbai airport, terminal opera- company besides examining demanded that 63.99% of votes claims made by
minister Jyotiraditya Scindia earlier in boards at entry gates for information on official said, seeking anonymity. tions teams have been deployed at self the conduct of the board of being a listed Sanjay Kirloskar
against it while
the day. The government is assessing wait time, setting up a command centre On 11 November, 427,517 departures baggage-drop and check-in kiosks to directors, including inde- entity KBL in relation to the
the situation and is looking to shift decongest traditional check in pendent directors. should justify the 36.01% were in Deed of Family
some of these flights from Delhi’s THE PERFECT CHAOS counters, a Mumbai airport spokes- KBL board had advised its rationale and favour Settlement (DFS),
T3 international terminal to person said. If there is a sudden shareholders to reject the res- basis on which it in order to ensure
domestic terminals—T1 and T2— THE ministry issued AT Delhi airport, THE ministry ON 11 Nov, air traffic surge in traffic, passengers are pri- olution saying “the requisi- has been spend- that they have not
or operating some flights from T3 the guidelines
following a ground
airlines must man
all counters,
directed the airport
authorities to put up
at departures was
recorded at 427,517,
oritized as per departure timings, tionists are not justified in ing huge amounts aggregating been misled by the claims
during non-peak hours. inspection of Delhi especially during digital display the highest level he added. questioning the independence to approximately ₹274 crore made” by the latter.
Scindia also held a meeting on 7 International Airport the peak hours boards at entry gates since onset of covid To accommodate both domestic of the independent directors towards payment of profes- In its rebuttal, KBL had said
December with the managements and foreign traffic during the peak or the decisions of the board” sional illegal expenses and the legal fees over the last
of Delhi, Mumbai, Bengaluru and hours, we have changed two inter- to initiate legal proceedings to consultancy charges ever seven years were approxi-
Hyderabad airports, and officials of the for real-time monitoring of crowds, were recorded, the highest level since national automated tray retrieval sys- protect the interest of the since their dispute arose since mately ₹70 crore, while a
Central Industrial Security Force and deploying crowd managers and usher- the onset of covid. This is nearly 7% tem lanes into swing lanes and person- company. on or about 2016. “major portion of the said ₹274
Immigration department. ers, and notifying airlines about pas- above the average daily traffic of nel have been deployed at all check- The Kirloskar siblings, with After being cleared of crore is professional fees paid
The latest action plan for Delhi air- senger traffic at entry gates. It also around 400,000 air passengers in points to ensure crowd rerouting and KBL chairman and managing insider trading charges to various Indian and overseas
port also includes two more entry gates asked airports to increase the auto- 2019. even distribution between zones, a director Sanjay Kirloskar on labelled against them by the reputed consultants to
for international terminals to 16 entry matic tray retrieval system machines Mumbai International Airport han- spokesperson for Bengaluru Interna- one side and Atul and Rahul on Securities Appellate Tribunal improve the company’s busi-
points, increasing the number of X-ray for baggage check from 13 to 20. dled record passenger movement with tional airport said. the other, have been in a feud (SAT), Rahul and Atul had ness”.
SC seeks clarity India’s flagship electric luxury car market grows competitive
in Delhi Airport Alisha Sachdev
alisha.sachdev@livemint.com
India currently have 2,500 are already hitting 10% of our
bookings, while its luxury overall sales. When I look at
that you need to have range
anxiety. But even if you needed
New DelhI adventure motorcycle arm individual segments, for exam- to travel those distances, we’re
Metro’s debt case BMW Motorrad has an addi- ple, the Mini hatch electric building a network of DC fast
T
he market for flagship tional 2,000 orders. compared to the ICE, the pene- chargers so you could literally
luxury electric cars is “EVs haven’t reached the tration is 30%-40%. We do charge while you’re having a
Priyanka Gawande growing more compet- threshold volume expect we will coffee. These chargers are
priyanka.gawande@livemint.com itive in India, with in India, so we BMW and continue to see a accessible 24 hours a day, not
mumbAI BMW preparing to launch its i7 aren’t localizing its British good offtake for just for our, but for all-electric
sedan next month. Based on them yet, but it is premium EVs with our pre- vehicle customers. So our eco-
A
Supreme Court bench the German carmaker flagship only a matter of hatchback unit mium customers system within the brand is suf-
on Monday asked the 7-Series, the i7 will go up time. Which one because of a vari- ficient to serve the needs of our
Mini currently
government to set a against Mercedes Benz’s EQS, will be first is the ety of factors: one, customers,” Pawah said.
timeline for settling the dues which was introduced earlier BMW is confident that upcoming flagship EV will overtake question. We have 2,500 we provide a pri- “That gives us confidence
of ₹4,520 crore to Delhi Air- this year. competitors. MINT already produce bookings in India vate charging that electric will do well for us,
port Metro Express by state- Vikram Pawah, president of 98% of what we network to our and that’s why we are adding
run Delhi Metro Rail Corp. BMW India, is confident that duce the i7 as a fully built-up preparing to deliver nearly 300 sell in the internal customers at another electric product as
(DMRC). the i7 will be a segment leader. unit (FBU), like the other elec- units of the EQS within the combustion engine (ICE) seg- home, so they don’t need to part of eight new product
The apex court directed the This launch comes as demand tric vehicles in its portfolio, year. ment locally across levels. So rely on any public charging. launches we have planned
government to respond by for electric cars continues to including the mid-sized sedan The i4, launched in May, is whenever we see volume, and Secondly, our customers nor- between December and Janu-
Wednesday, and denied the rise in India. i4 and SUV iX. sold out until the end of next it adds value to the customer, mally have a running distance ary. We will be the only car
DMRC’s request for an addi- The apex court also denied While Mercedes Benz has Mercedes Benz, which year, Pawah said. we will produce in India,” he of, let’s say, between 45 to 50 maker in the country to offer
tional four weeks to respond. DMRC’s request for an localized the assembly of its imports the performance ver- BMW and its British pre- said. km a day. So, it’s not like you’re four distinct electric prod-
The Delhi Airport Metro additional four weeks. MINT EQS sedan, BMW will intro- sion of the EQS car as an FBU, is mium hatchback unit Mini in “On the demand side, EVs travelling 200-300 km a day ucts.”
Express, which is operated by
Reliance Infrastructure Ltd, rejected his plea.
won an arbitration award of Reliance Infrastructure had
₹7,200 crore in May 2017 filed a special leave petition in
against DMRC, out of which the apex court in November,
₹2,600 crore has been paid by seeking payment of the dues
Vim’s parody ad on dishwash for men causes stir, backlash
the government-owned firm. of ₹4,500 crore.
“On one hand there are Subsequently, the court Varuni Khosla & the campaign. tion of men in cleaning ad was tonally different from
public speeches on making had issued a notice to DMRC Suneera Tandon The company defended the chores. However, things have its earlier campaigns, in
India an international arbitra- and asked it to respond by 12 ad saying it breaks gender ster- returned to the old normal,” which the company followed
tion hub, but December. New DelhI eotypes. Societal stereotypes, he added. similar themes for its cam-
there is no effort Delhi Airport Parallelly, the defining women only through For years, advertisers have paigns.
F
to enforcement Metro Express matter is also ollowing a backlash on chores such as caregiving and followed the same narrative In 2020, it had taken out an
of award? The won arbitration being heard by social media by a section household tasks are bogging —often showing women in advertisement with cricketer
award upheld by award of ₹7,200 cr, the Delhi High of consumers, Hindustan them down, it added. the kitchen, or as a primary Virender Sehwag washing the
the court has to Court which Unilever Ltd on Monday said To raise this issue, the firm caretaker of the child. How- dishes with a gel product to
out of which
be followed,” the granted DMRC ‘Vim Black for Men’ is a ficti- launched the ‘limited edition ever, as social mores change, highlight that men need to or
bench headed by ₹2,600 cr has been t i m e t i l l 1 2 tious product and the ad fea- product’ that was purportedly brands have tried to capture are doing more dishwashing
Justice B.R. paid by DMRC December and turing actor Milind Soman was designed for men, but in real- the shift in how households and were participating in
Gavai said. had asked the indeed a joke. ity the product is the same as behave. It isn’t the first time more household activities.
Justice Vikram company to While many considered it a the existing Vim liquid. While many considered it a successful campaign, the company brands are trying to critique According to Srinivasan, by
Nath asked attorney general come up with a plan to settle successful campaign, the com- HUL’s executive director received mixed opinion from social media users. the gender divide existing in doing this kind of a campaign,
R. Venkataramani about the the dues. pany did receive mixed opin- and vice president for home households. Rival P&G’s HUL removes men altogether
tentative timeline for settling On 17 November, DMRC ion from social media users. care, South Asia, Deepak Sub- thought—Vim has been on a the shoulders of the woman laundry brand Ariel, has been from the dialogue by mocking
the dues, and if the Union of had filed an affidavit in the In the ad, the protagonist is ramanian said the negative mission now to really drive no matter which income running the ‘Share the Load’ them for not doing enough
India was willing to become a high court stating the Delhi seen berating a man claiming chatter around the campaign this thought on how we can strata we talk about. Covid, of campaign for years to encour- and for bragging when they
party to the case. government will discuss to do household chores such as is something that the team empower women more and course, brought about some age men to participate in do very little. This campaign
When the attorney general clearing at least half the washing dishes. While some had hoped would come as a give her an identity which is changes and that was simply household chores. was conceived by Lowe Lin-
sought four more weeks for amount at a cabinet meeting, users across Twitter and Insta- part of the strategy. “The more than just her role in the because there was no help and Communications strategy tas, put out by media agency
the DMRC to come up with a but the matter may take some gram criticized HUL’s adver- campaign was born more out kitchen.” “Household chores everything was at home. And consultant Karthik Srinivasan Mindshare and produced by
payment plan, the apex court more time. tisement, many others praised of brand purpose and brand unfortunately always falls on we did see greater participa- said the whole narrative of the MTV.
New Delhi CORPORATE LIVEMINT.COM
CPI inflation
in November Industry wants customs duty Industrial output
in Oct contracts to
eases to an
11-month low exemption on handset parts a 26-month low
FROM PAGE 1 FROM PAGE 1
2022 to 4.67%, which is way in the economy, registered a

lower than the 7.01% recorded The mobile phone industry has sought the exemption for parts not manufactured in India 15.3% decline in October,
in October. The absolute while production of capital
decline in prices of vegetables, goods contracted by 2.3%.
‘oils and fats’ and ‘sugar and Gulveen Aulakh the exchequer. As many as 17 of 32 manu-
confectionery’ contributed sig- gulveen.aulakh@livemint.com “A small portion of domestic facturing sectors tracked in
nificantly to the reduction in New Delhi demand, especially some high-end the IIP recorded negative
food price inflation, it said. phones, will always be sourced glo- growth, led by apparel (-37%),
T
“The measures taken by the he mobile phone industry bally. The high import duty of 22% plus electrical equipment (-33.2%),
government to contain food has recommended exempt- the increased GST of 18% has created a leather products (-24.3%),
prices helped bring inflation ing handset parts that are not $1-2 billion grey market. The arbitrage pharmaceuticals (-21.4%) and
below the RBI tolerance limit of made in India from customs is too attractive for passengers and textiles (-18.6%).
6%. To soften the prices of cere- duty to attract foreign smugglers,” said Pankaj Mohindroo, Intermediate goods and Mining output rose by 4.6%,
als, pulses and edible oils, investments in manufacturing and the chairman of ICEA. capital goods production also and power generation gained
appropriate trade-related development of the components sup- He added that mobile phone imports contracted by 2.8% and 2.3% 11.6% during the month. AFP
measures have been under- ply chain in India. dropped drastically to just 4% of the respectively, while primary
taken. The impact of these In its recommendations to the gov- domestic market, and therefore chang- goods grew by 2%. Infrastruc- growth, and prompt it to accel-
measures is expected to be felt ernment ahead of the Union budget, ing the custom duty structure would ture/construction goods out- erate reforms across sectors
more significantly in the com- the industry also sought the removal of not hurt the government collections put rose 1% in October but was and look for further stimulus
ing months,” the ministry said. duties on sub-components that fall from duties but would, in turn, gain 0.7% below September 2022 to boost the economy.
India, like several other coun- under the mechanics category and has from sales of phones that will move levels. Terming the October IIP
tries, imposed export curbs on proposed a customs duty cap of ₹4,000 from the grey market to the organized Production of consumer print a surprise, Madan Sabna-
select commodities to improve on smartphones priced above ₹20,000 retail market, on the back of low duties. durables and non-consumer vis, chief economist at Bank of
domestic supplies and reduced to discourage smuggling of high-end “The GST collection will go up by goods shrank in the double Baroda, said, “We expected flat
import duty on select edible devices, such as iPhones or foldable over ₹1,000 crore, and the market digits, declining 15.3% and growth of 0.5%. There has
oils to fight inflation. smartphones from Samsung. This is in The industry also proposed a customs duty cap of ₹4,000 on smartphones priced environment will get regularized,” the 13.4% respectively, the data been a decline in almost all cat-
“In the case of fuel and light- contrast to the current 20% duty rate. above ₹20,000 to discourage smuggling of high-end devices. ISTOCK industry said in its recommendations. showed. egories. Capital goods have
ing, as the government has not “As we work towards bringing more It added that by capping the duty According to government been disappointing as it indi-
altered the taxes; we have not global value chains to India, it is critical still being imported made the industry grounds that the change led to an amount, India’s domestic manufactur- data, the manufacturing sec- cates that investment is lag-
been able to derive any benefit for domestic value addition to increase. very uncompetitive, the industry increase in prices for consumers, which ing industry would get an additional tor’s output rose ging. Clearly, pri-
from lower global crude prices. Tariffs on inputs and components are a argued while seeking exemptions from in turn slowed down the migration of boost while also providing a platform 1.8% in Septem- Production of vate sector
The advantage of the base effect barrier to increasing localization. all duties on the sub-components. They feature phone users to smartphones, for the ancillary ecosystem, including ber as against a consumer durables investment has
will not be available in Decem- Therefore, as a principle, the govern- added that the measure would also while also hampering the growth of the after-sales functions, to shift to India. 4.3% growth and non-consumer not picked up so
ber, and we can expect a number ment may consider creating a ‘Not resolve the issue of payments made domestic manufacturers. The government has imposed a 22% recorded in the goods shrank in the far.”
above 6.5%. We may expect RBI Manufactured in India’ category of towards integrated goods and service While recommending the cap of import duty on smartphones, inclusive year-ago period. “Consumer
double digits,
to continue to increase rates by components that are exempt from all tax (IGST) levied on imports of prod- ₹4,000 as custom duty on phones of a 20% basic customs duty and a 2% Mining output goods continue to
another 25 bps in February as duties,” Indian Cellular and Elec- social welfare surcharge since FY21. rose by 4.6%, and declining 15.3% and disappoint this
inflation will be above 6%,” said tronics Association (ICEA), which REMOVING HURDLES India has kept a high import duty power generation 13.4% respectively time, too, as both
Madan Sabnavis, chief econo- represents various mobile phone structure since 2015 in order to gained 11.6% dur- durable and non-
mist at Bank of Baroda. makers and electronics industry THE industry also IT also sought HIGH GST led to an THE industry promote local manufacturing of ing the month. durable goods
Experts also said though infla- players in India, said. sought the removal reverting to 12% GST increase in prices for pointed to loss of mobile phones. The strategy bore The external slowdown and have witnessed de-growth.
of smaller tariffs, on mobile phones consumers, which in ₹4,400 crore to the
tionary pressures are on a declin- The industry also sought the such as social and parts instead of turn slowed shift to exchequer due to fruit, with local production of the possibility of a global This is a let-down, as one
ing trend, the war against inflation removal of smaller tariffs, such as welfare surcharge the present 18%, smartphones smuggling of phones mobile phones rising to ₹2.75 tril- recession may push down would have expected them to
is not over. The moderation in social welfare surcharge that is cal- lion in FY22 from ₹18,900 crore in India’s exports, while the wan- be buoyant during the festival
food inflation is comforting, but it culated as 10% of the customs duty FY15 in terms of value. Imports ing of pent-up demand inter- month of October. Quite
is mostly led by vegetables which that is levied on a product, while seek- ucts that are not set off against goods above ₹20,000, the industry pointed to dropped in proportion to about 5% nally could put pressure on the clearly, high nominal con-
are susceptible to weather fluctua- ing complete exemption from customs and service tax (GST) paid on final imports of over 1 million handsets in from 78% in the same comparison growth prospects of various sumption has been due to
tions, said Rajani Sinha, chief duties on mobile phone parts such as products. the grey market valued at over ₹15,000 period. industrial sectors. higher inflation. Therefore,
economist, CareEdge Group. “RBI resin, lens, mesh, adhesive, sponge, The industry also sought the revert- crore, on which the government was Local production also led to a rise in Things may also get tough future prospects look not so
will remain cautious to prevent and film, some of which attract 8.25% ing to 12% GST on mobile phones and unable to collect customs duty or levy exports that have risen to about for the government that is positive as we move to the end
inflationary expectations from spi- duty. parts instead of the present level of 18%, goods and service tax on retail sales, ₹45,000 crore as of October, versus looking at reviving the invest- of the festival months,” he
ralling upwards,” Sinha said. High duties on mechanics that were which was done in March 2020, on the thus leading to loss of ₹4,400 crore to none seven years ago. ment cycle and boosting added.
Budget may peg Govt plans battery storage PLI SRK Jr. & a bet on premium liquor
railways’ operating FROM PAGE 1 FROM PAGE 1 years.
Khan said the premise of
The demand for energy stor- trading up to better-tasting Slab is to dabble into a “bunch
ratio below 95% age has surged in the past two
years as the need for round-the-
clock renewable energy has
spirits.The move is also aligned
with AB InBev’s global ‘Beyond
Beer’ agenda that has seen the
of things” to cater to aspira-
tional Indian consumers who
are increasingly scouting for
grown. In July, the Centre added brewer expand into categories the latest sneaker “drops” while
FROM PAGE 1 an energy storage obligation to outside beer. also being exposed to emerging
its existing renewable purchase For AB InBev, the associa- trends globally.
of anonymity that after the covid obligation for the first time. tion with Slab Ventures is envi- “We have an apparel vertical
earnings shock, FY24 should put The government’s energy The demand for energy storage has surged in the past two years as sioned as a multi-category, coming out sometime early
the national transporter back on storage obligation (ESO) tar- the need for round-the-clock renewable energy has grown. BLOOMBERG multi-beverage approach, next year. It’s going to be
the path of being a self-sufficient gets a certain percentage of along with some adjacencies, brought to the consumer as a
and efficient organization with a total energy consumed to be residential and commercial the works for over a year now. said Kartikeya Sharma, presi- limited edition, capsule collec-
lower operating ratio after sev- sourced from energy storage. consumers can improve their Last year, Singh said the gov- dent of India and South East India is one of the fastest-growing tion and made available
eral years. The initial target for FY24 is 1%, power quality and reliability. ernment has identified around Asia, AB InBev. alcoholic beverage markets, with through ‘drops’ on the web
In FY21, the railways got a rising to 4% by FY30. To fulfil Similarly, pumped storage 63 projects with a total capacity “The move is intended with a an estimated market size of store,” Khan, who was sporting
special central loan of around ESO, at least 85% of the energy plants serve as a storage mecha- of 96GW. clear outlook on building a glo- $52.5 billion as of 2020. MINT a sweatshirt by Italian luxury
₹80,000 crore to make up for procured and stored annually nism for hydropower. They are The government has also bally acceptable and globally label Off-White, said.
the covid-related resource gap, must come from renewable made up of two water reservoirs come up with bids for energy present portfolio of brands. Of $1.6 billion in revenue in FY21. The apparel collection will
which helped it keep its operat- energy sources. at different elevations, which storage systems. course, given India, and its size In fact, it recently entered hopefully hit the market by
ing ratio in check. However, Railways is hoping to increase its According to experts, energy generate power as water flows Recently, Greenko Group of spirits (market)—it is the sec- India’s hard spirits category March-April next year.
this remained unavailable in freight traffic to 4.5-5 million storage can play a crucial role in from one to the other through a announced that it had placed ond-largest market, but with a with the launch of locally “Everything that we’re going
FY22, worsening the ratio to tonnes per day next year. MINT grid integration and balancing turbine. The system also requires the lowest bid for the world’s significant upside for premi- blended and bottled whisky to be doing, whether it’s in the
98.93% in the revised estimates of variable generation sources. power as it pumps water back first and largest technology-ag- umization opportunity,” under the Budweiser Magnum beverages vertical or any of the
for the fiscal, lower than the passenger revenue fell 27%, but Increasing the system’s overall into the upper reservoir. nostic energy storage tender Sharma said. Double Barrel brand. other verticals, apparel, acces-
96.15% that the national trans- freight earnings rose 5% over flexibility can improve power Along with battery storage, floated by state-run power pro- D’yavol will be aggressively In India, Sharma said, the sories, it will all sit very squarely
porter had budgeted. However, budget estimates. Still, the quality, reduce peak demand, the government has been mak- ducer NTPC Ltd. The tender is marketed across top-end bars company’s aspiration is to get at in the luxury segment. So, it’ll
with a higher operating ratio in operating ratio improved in enhance the capacity of distri- ing efforts to boost pumped for 3000MWh for a 25-year and restaurants and 4,000 to least 5-7% of the company’s apply across all the spirits as
the previous year and increased FY21 to 97% from 98.4% in the bution and transmission grids, storage plants, and the much- period, and Greenko won the 5,000 top-end liquor retail topline from the ‘Beyond Beer’ well,” Blagoeva, who earlier
capex, the operating ratio for previous year, largely on and avoid or reduce deviation anticipated policy for pumped tender through its pumped stores. portfolio that includes zero- worked with a consulting firm,
FY23 remained high at 96.98%. account of a growth in freight penalties. hydro is likely to come up in the hydro-backed bid. In 2021, AB InBev’s global beer variants, white and brown and across the pharmaceutical,
Though capex for FY24 is earnings and additional central By using energy storage sys- coming budget. The pumped The government also solicited Beyond Beer business grew by spirits, as well as non-alcoholic automotive and fashion indus-
also expected to rise over 25% fund support. Also, the trans- tems and renewable energy, hydro plants’ policy has been in bids for energy storage systems. more than 20%, contributing beverages over three to four tries, said.
to about ₹3 trillion, railways is porter cut its cost, ending sev-
hoping to increase its freight eral subsidized rail services.
traffic to 4.5-5 million tonnes The FY24 rail budget is
per day next year from just expected to take measures to
about 4 mt per day now. Also, augment resources while curb-
normalcy in travel and ing non-essential expenditure.
Nilekani: Account aggregators make loan disbursal easy
expected growth in passenger Accordingly, 100% electrifica-
revenues, even with a lower rise tion of the broad gauge line is FROM PAGE 1 very easy to authenticate and do sumers are not getting access. businesses and consumers. private innovation happening in
in central budget- expected to be an eKYC (online know-your- This (AA) will make credit acces- Extending credit in this manner the logistics sector, too, with
ary support of just Total revenue completed in (online dispute resolution) customer) to open a bank sible to both these categories. to small businesses and individ- multiple startups coming in for
about ₹1.5 trillion from traffic for FY24, which approach. I personally am quite account or get a mobile connec- This will create massive ual borrowers is the key to equita- last-mile delivery, streaming the
in FY24 (from FY23 is estimated could reduce the bullish now that it (AA) has tion. DBT (direct benefit trans- momentum for equitable and ble and inclusive economic fragmented trucking market etc.
₹1.37 trillion in at ₹2.4 trillion, an railways’ fuel bill reached a take-off point, and fer) made it very easy to transfer democratized economic growth. The second one is the So, the three big revolutions
FY23), is expected
annual increase of b y almost recently the government took money into people’s bank growth—spreading the benefits democratization of e-commerce will be—democratizing credit
to help bring ₹10,000 crore. the very positive step of notify- accounts, and more than $310 of technology by making lending through ONDC, which allows through AA, democratizing
down the operat- 19% over FY22 Also, the focus will ing GSTN (Goods and Services billion has been transferred, accessible to small consumers by any supplier to list commerce through
ing ratio. revised estimates be on increasing Tax Network) for FIP (financial with more than six billion bene- accessing their digital footprint. its products on India will move ONDC; and essen-
Total revenue the share of non- information provider), which ficiary transactions. UPI has This is known as information col- the ONDC proto- from a pre-paid tially making the
from traffic for fare revenue sour- opens up the case for business made payments free and high lateral, as opposed to asset collat- col, thus enabling cash informal delivery of products
FY23 is estimated at ₹2.4 tril- ces in railways’ total revenue. lending. Given my experience volume and instant—from any eral, where you use assets to any consumer to economy to a post- much simpler and
lion, an annual increase of 19% This could be done through with these projects, I have seen app to any app and any bank NIlekani said last month, UPI decide whether a person is wor- buy, and anyone cheaper with logis-
paid formal
over FY22 revised estimates. In increased asset monetization, that while it takes many years to account to any bank account. did 7.3 bn transactions. MINT thy of a loan. Information collat- can deliver it. tics’ transformation.
FY23, revenue from both especially on the yet-to-be-op- bring ecosystems like Aadhaar Last month, UPI did 7.3 billion eral uses the sales, purchase, or The third is the cashless productive These three steps
freight and passenger traffic is erational dedicated freight cor- and UPI to the point of take-off, transactions. The rise of 4G net- millions of consumers without even your tax information to transformation of economy. will lay the founda-
also expected to grow at an ridor and also the sale and com- once you do so, the usage works (and now 5G) has enabled any credit history, and millions decide whether you are a credit logistics with the tion for equitable
annual rate of 14% and 32% over mercialization of railway land spreads rapidly. cheap connectivity. And, of of small businesses that could risk or not. AA makes it easier to government ena- commercial activity
FY22 revised estimates. at key destinations. How does AA tie up with the course, smartphones have not get a loan earlier, now have discover a borrower. It ensures bling good infrastructure, good for both goods and services.
In FY21, passenger train ser- Railways earns its internal India Stack and other eco- become common. access to credit. India’s credit to there are adequate data to judge roads, airports, ports, multimo- India will move from a pre-paid
vices were stopped to slow the revenue primarily from pas- systems such as Aadhaar, What are the next steps, and GDP ratio is relatively lower the credit risk of a borrower, and dal parks, etc., and the single cash informal economy to a post-
pandemic’s spread, leading to senger and freight traffic. In UPI, and ONDC? what do they herald? when compared with other because of digital payments, you national market that GST and paid formal cashless productive
revenue from freight and pas- FY20, freight and passenger In the first phase of this trans- The second phase, in my countries (less than 60%), and can design the framework in a E-Way Bills and RFID (radio fre- economy. This, in turn, will lead
senger traffic falling 16% and traffic contributed to about formation, we essentially got the view, has three dimensions to it. even then, a lot of credit is going way to ensure that the repay- quency identification) based to higher tax-to-GDP collections
75%, respectively, over the 65% and 29% of the internal transaction efficiency that India One is using the AA framework to the big players, while the ments are done digitally and built FASTag system has created. And as formalization and compliance
budget estimates. In FY22, too, revenue, respectively. required. So, Aadhaar made it to democratize credit so that small businesses and new con- into the cash flow of the small then, there’s a huge amount of drive tax revenues.
LIVEMINT.COM CORPORATE TuesDay, 13 December 2022
New Delhi 07
Tata Motors
may sell part ‘Corp credit demand soaring; Two-wheeler firms
set for flex fuel push
of Tata Tech
stake in IPO
let lenders fund acquisitions’ by 2024: Siam exec
Shayan Ghosh & Satish John
PTI mumbAi Alisha Sachdev
feedback@livemint.com alisha.sachdev@livemint.com
A
xis Bank Ltd has been see- new delhi
T
ata Motors on Monday ing broad-based growth in
T
said it would explore the corporate loan demand wo-wheeler manufactur-
possibility of partial from renewables, chemi- ers are preparing to mass
divestment of its holding in cals, healthcare and distri- produce flexible fuel
subsidiary Tata Technologies bution and transmission projects. Rajiv vehicles by 2024, K.N. Rad-
Ltd through an initial public Anand, the private sector lender’s dep- hakrishnan, chairman of the
offering route. uty managing director, said in an inter- council on two-wheelers at
In a regulatory filing, Tata view that while the animal spirits are not Society of Indian Automobile
Motors said the IPO Commit- back yet, the corporate credit cycle is Manufacturers (Siam), and
tee of the company, which met probably at its best in the last three to director and chief executive
on 12 December has accorded four years. Edited excerpts: officer of TVS Motor Co., said
its in-principle approval for on Monday. K.N. Radhakrishnan, chair of
such a step. Where is the current corporate Along with passenger vehi- two-wheelers council at Siam.
However, the IPO would be credit growth coming from? cles manufacturer Maruti Suz-
subject to market conditions, If you look at credit growth to indus- uki, seven two-wheeler compa- The industry urged minister
applicable approvals, regula- tries, it is about 10%. For several years, nies have presented flex fuel of road transport and highways
tory clearances, including this was pretty much at zero growth. It is vehicle prototypes, ahead of Nitin Gadkari to consider lower
observations from the Securi- broad-based now. We are seeing a lot of the government’s 1 April 2023 tax rates for such vehicles to aid
ties and Exchange Board of activity, for example, in renewables, deadline for E20 fuel compli- customer adoption.
India, and certain other con- roads, chemicals, city gas distribution, ance for the auto industry. “The most important thing a
siderations, it added. commercial real estate and transmission While homegrown original customer looks at is the total
Tata Technologies is a projects, and post-covid, in healthcare as equipment manufacturers like cost of ownership. Total cost of
global engineering and prod- well. We are also seeing various projects TVS Motor Co., Bajaj Auto and ownership (TCO)-based pric-
uct development digital servi- even in the fast-moving consumer goods more from venture capital, venture debt that serve our customers. We are com- finance, given the number of deals Hero MotoCorp. displayed ing of flex fuel vehicles will be
ces firm. It offers services to sector, where people are looking to kind of players. When the viability and fortable lending to startups and obvi- being struck right now? indigenous BS-VI-compliant necessary given the lower mile-
industries across automotive, increase capacities. So, to answer your scalability of it is established, that is really ously, the size of transactions would be There is a lot of M&A activity happen- flex fuel prototypes, Japan’s age to the customer... and at
aerospace, industrial heavy question, is the animal spirits back in the when the banks will come in. After all, we relatively smaller. These are mostly ing. But unfortunately, the regulations Yamaha and Honda imported least in the initial days, a lower
machinery and others. corporate sector? My answer is: No. are not in the venture debt business and working capital loans and by land large are such that banks like us are not the two-wheelers to India. GST will help us to sustain the
As per information availa- However, is the corporate credit cycle are not in the job of taking risks on we do not do term loans in this space. allowed to participate in acquisition Some compa- demand. Finally,
ble on the company’s website, well and truly getting broad-based? My whether a particular invention will, or How is the integration on the Citi financing. Therefore, much of this busi- nies sell E20- India’s we would like a
‘
Tata Technologies had answer is: Yes. And, it is probably the best will not work. deal going? ness is effectively taken up by foreign compliant vehi- automotive clear roadmap for
clocked revenue of $473.5 mil- that we have seen in the last three to four What is your stance on lending to We have created an banks on their offshore cles markets such sector is E20-E85 fuel and
lion in FY22. It is a strategic years. startups? integration team which balance sheets. We are as Brazil. E20 fuel mandated to roll the quality of fuel
supplier to Airbus and it had That it is a very, very exciting space. is looking at people We have always been engaging with the reg- uses 20% ethanol
Will you consider backing green
out vehicles with availability”, he
recently inaugurated its inno- hydrogen projects? We have created 5-6 years ago a group issues, technology looking at inorganic ulator to relook at this. blending. India’s added.
vation centre in Toulouse, If you look at renewa- which we call the new issues and regulatory If RBI is uncomforta- automotive sector E20 compliant Maruti Suzuki
opportunities to fill engines by 2025
France, as part of its strategy to bles, it has taken banks m INTERVIEW economy group, which is issues and we have ble, it can put appropri- is mandated to roll India unveiled a
cater to the product engineer- almost 10 years to get primarily focused on multiple streams there. some capabilities, not ate checks and balan- out vehicles with flex-fuel variant of
ing and digital requirements of comfortable with the serving startups Series A That is working well necessarily only in the ces, but should not shut E20 compliant the WagonR and
the global aerospace and technology. There was uncertainty in and beyond. Today, we have about a 30% and we are progress- banking space us out of these busi- engines by 2025. sought “correct” accounting of
defence sector. In June, Tata terms of how tariffs would play out, etc. market share, and we bank 60% of uni- ing. There is a govern- nesses. “We are all working under green house gas emission bene-
Rajiv Anand
Technologies had joined the Then the government came in and banks corns in the country. Our intent is really ance structure at vari- Deputy MD, Axis Bank
Are you open to the aegis of Siam with a road- fits for Corporate Average Fuel
Foxconn-initiated MIH Con- were a bit apprehensive about funding, to work with these startups as they con- ous levels to monitor acquisitions to fill up map for introducing flex fuel Economy (CAFE-II) norms.
sortium to promote develop- especially given the past experience with tinue to grow and our relationship with progress from both gaps in your bank- vehicles. By October - Decem- While existing guidelines
ment of sustainable mobility power purchase agreements (PPAs) for them is multi-fold. Transaction banking, sides. Citi is going through the process of ing and finance propositions? ber 2023, we will all showcase accord the benefit of lower tail
solutions and encourage col- thermal, where states were involved. employee banking and forex are some seeking customer consent and that is We have always been looking at inor- tooled-up pilot of flex fuel two- pipe emissions to the calcula-
laboration within the industry. The whole process of bankability of things that we work on. Our philosophy going better than expected. So, all in all, ganic opportunities to fill some capabili- wheelers. And by September - tion of CAFE-II benefits, Siam
The MIH (Mobility In Har- renewables has taken quite some time. I on digital has been to compete in some it is progressing well. There are some ties, not necessarily only in the banking October 2024, we all will work said greenhouse gas reduction
mony Consortium) comprises think we will have to go through the areas and collaborate on others. So, there minor technology challenges because space. We will continue to look at such towards mass production of at from the environment in the
more than 2,300 members in same process on green hydrogen as well. are many startups whom we collaborate both the banks are on different plat- opportunities, but it has to make sense least one model of flex fuel two- process of manufacturing bio-
the field of software, hardware, My feeling is that the initial phase of with and they either bring differentiated forms. We are addressing it. for us and be accretive, and ultimately wheeler per manufacturer,” ethanol should also reflect in
and services. funding of green hydrogen will come services or differentiated technology Will you look at offering acquisition have to come to us at a reasonable price. Radhakrishnan said. the calculation standards.
Where every number tells a story...
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m MINT SHORTS
Iran execution: Man hanged from
Recession edges out inflation
as investors’ top concern
crane in public amid protests
Dubai: Iran executed a second prisoner on Monday convicted
over crimes committed during the nationwide protests challeng-
ing the country’s theocracy, publicly hanging him from a con-
struction crane as a gruesome warning to others. The execution
of Majidreza Rahnavard came less than a month after he allegedly
fatally stabbed two members of a paramilitary force. Activists
warn that at least a dozen people already have been sentenced to
death in closed-door hearings. AP Equities and fixed-income mkts have diverged in Dec, with energy, finance stocks being the worst-performers
Amgen agrees to buy Horizon Matt Grossman climb before a recession forces the earnings outlook,” Mr Haefele wrote.
feedback@livemint.com central bank to change course rapidly That said, some economically sen-
Therapeutics in $27.8 billion deal later next year, said Matt Toms, global sitive shares have held up. Deere &
S
REUTERS
tocks and bonds have chief investment officer at Voya Co.’s stock has bested broader
headed in opposite direc- Investment Management. That has indexes in December so far, falling
tions to start December, a deepened the yield-curve inversion 1.4%. On Wednesday, the equipment
sign that investors’ worries that many on Wall Street take as an maker boosted its dividend by 6%.
about slowing growth have omen of a coming recession. Paint company Sherwin-Williams Co.
started to eclipse their fears of per- Market-based inflation forecasts has risen 1.5% this month despite
sistent inflation. provide more evidence of recession fears that a recession could slam the
Equity traders have taken the fears. Traders’ expectations for the housing market.
darker view, deepening this year’s annual inflation rate over the next Pivotal economic data coming this
double-digit losses for the S&P 500 two, five and 10 years are all close to week will help investors gauge the
and on Friday snapping a two-week about 2.3%, nearly in line with the outlook. Tuesday morning, investors
winning streak for the major stock Fed’s 2% target, data from Tradeweb will be watching the release of
indexes. Meanwhile, a rally this show. The fact that stocks have fallen November’s consumer-price data for
Amgen Inc. agreed to buy Horizon Therapeutics Plc for month has erased some of this year’s even though investors aren’t worried signs that inflation has continued to
about $27.8 billion in its biggest-ever acquisition, outlast- fixed-income rout in a bet that bond that inflation will soar in the future is cool off from multidecade highs
ing at least two other suitors for the developer of autoim- prices have already fallen far enough Traders are confident that the central bank will ease the pace of its tightening a sign that their concerns about eco- notched earlier this year.
mune-disease treatments. Amgen will pay $116.50 a share to reflect the full brunt of expected by raising rates by half a percentage point. AP nomic growth are driving the Economists polled by The Wall
in cash, the companies said in a statement on Monday, for Federal Reserve interest-rate declines, Mr Toms said. Street Journal are expecting the fig-
a premium of about 48% since Horizon Therapeutics increases. hard hit by a recession that cuts ber moves are a sign that the possibil- Through November, the job mar- ures to show a 7.3% year-over-year
disclosed on Nov. 29 that it was in early talks with three The trades behind these trends demand for fuel and threatens profits ity of a downturn—not merely expec- ket has remained tight by historical rise in prices, down from 7.7% a
suitors. BLOOMBERG suggest that recession is supplanting at financial companies. tations of slower inflation—is fueling standards and there is little sign that month earlier.
inflation as investors’ top concern Airlines and logistics companies, the bond market’s recent rally, said consumer demand has plummeted. Then, Wednesday afternoon will
heading into 2023. The labor market also primed to struggle if a slowdown Michael Antonelli, a managing Still, a wave of corporate layoffs is bring the Fed’s latest decision on
Maersk CEO Soren Skou leaves remains buoyant and Friday’s pro- eats into demand for travel and director at Baird. accelerating, especially among tech interest rates. Traders are confident
ducer-price data came in hotter than freight, have fallen, too. The Dow “The better part of this year was all companies that expanded rapidly that the central bank will ease the
as Vincent Clerc takes over expected, suggesting economic Jones Transportation Average is about inflation worries, but that during the pandemic. Wall Street’s pace of its tightening by raising rates
AP Moller-Maersk A/S said chief executive officer Soren Skou demand has stayed strong. down 6% in December, trailing the seems to have shifted,” Mr Antonelli forecast for S&P 500 companies’ by half a percentage point, according
will leave the company and will be replaced by Vincent Clerc, the But oil prices have fallen and shares 3.2% slide for the Dow Jones Indus- said. 2023 profits fell by 3.6% between to CME’s FedWatch tool, but they will
current head of the transport giant’s ocean and logistics business. of businesses that suffer when the trial Average. When a looming economic slow- Sept. 30 and Nov. 30 as investors be paying close attention to Fed offi-
Clerc will start on 1 January as part of a “planned CEO transition,” economy slows have taken some of Cruise operator Carnival Corp. has down clouds the outlook for stocks, evaluated how businesses fared in cials’ projections about how rates are
the Copenhagen-based company on Monday. Skou, 58, was a the biggest hits this month. lost 11% in Decem- investors often this year’s third quarter, according to likely to move next year.
teenager when he joined Maersk as a trainee and has been with Energy and financial stocks have ber, and Host buy bonds for research by John Butters, an analyst For most of 2022, as alarm bells
Maersk his whole career. He also faces the task of de-carbonizing been two of the worst-performing Hotels & Resorts their relative at FactSet. blared after every inflation report,
a fleet of more than 700 vessels. BLOOMBERG segments of the S&P 500 in Decem- Inc. is down 6.6%. safety and stabil- Mark Haefele, chief investment good news for economic growth was
ber, falling by 9.3% and 5%, respec- Meanwhile, government bonds ity. But for most of this year, stocks officer for global wealth management taken as bad news for stock and bond
tively, and lagging behind the have rallied, with the yield on the and bonds suffered in tandem at UBS, wrote in a note to clients last investors worried about more rate
Britain’s GDP grows 0.5% in broader index’s 3.6% decline. Natu- benchmark 10-year Treasury touch- because inflation required the Fed to week that stock prices still haven’t increases, said Cindy Beaulieu, a
ral-gas producer EQT Corp. is down ing 3.5% and its lowest levels in three raise interest rates rapidly. Rates rose fallen enough this year to reflect the managing director at asset manager
October: Statistics office 16% in December, and refiner Valero months, according to Tradeweb, with little sign of damage to economic possibility of a deep economic down- Conning. Now, that pattern could
BLOOMBERG
Energy Corp. has lost 14%. down from a recent high of 4.231% in growth, hurting stocks and bonds turn. weaken, she said.
Banks from giants such as Wells October. Yields fall when bond prices alike. A short stock rally that carried “In both the stock and the bond
Fargo & Co. to regional institutions rise. More recently, however, longer- through October and November market, you’re coming around to the
such as M&T Bank Corp.—each down Many investors are betting that the term Treasury notes have marked briefly lifted prices, but now, conver- idea that you have a much higher risk
11% this month—have dived in economy will avoid a severe reces- bigger price gains than shorter-term gence between the stock and bond of a recession next year,” Ms Beaulieu
December as well. sion. notes, suggesting that traders think markets “is more likely to be led by said.
Both sectors could be especially But together, the market’s Decem- the Fed’s target rate could continue to equities pricing in a deteriorating ©2022 DOW JONES & COMPANY, INC
Microsoft to buy 4% of London Aramco in talks with investors

London: Britain’s economy grew 0.5 % in October, official
data showed on Monday, after a sharp fall the previous
month in part because of the national holiday for Queen
Stock Exchange on cloud deal on $110 bn Jafurah gas project
Elizabeth II’s funeral. GDP fell 0.6% in September after
businesses closed for the royal funeral, and Britain’s econ- Bloomberg the coming years by accessing Bloomberg spokesperson for Evercore
omy shrank by 0.2% in the third quarter, according to the feedback@livemint.com new products and enhancing feedback@livemint.com didn’t have an immediate
Office for National Statistics. AFP our existing product capabili- comment.
M S
icrosoft Corp. agreed ties,” LSEG chief executive audi Aramco has started The war in Ukraine has led
to buy a 4% stake in officer David Schwimmer said talks with potential to a frantic surge in demand
Mauritius weighs sale of up to London Stock in a phone interview. backers for its $110 bil- for natural gas, led by Euro-
Exchange Group Plc as part of At Friday’s closing price, a lion Jafurah gas development, pean nations that traditionally
$1 billion of social-impact bonds a $2.8 billion cloud-computing 4% stake in LSEG was valued at according to people familiar got their supplies from Russia.
Mauritius’s government is considering offering as much as $1 bil- deal that pushes big tech fur- around £1.6 billion ($2 billion). with the matter, as the oil pro- This has led to Gulf states
lion of social-impact bonds to help fund plans to increase renewa- ther into financial markets. Microsoft will buy its stake ducer plans to exploit one of embarking on ambitious plans
ble-power production and transition to greener transport, As part of the agreement, from a consortium made up of the world’s largest unconven- to expand their gas output.
Finance Minister Renganaden Padayachy said. The government LSEG said it will spend at least Blackstone, Thomson Reuters tional gas fields. Some companies have also
is considering offering $500 million to $1 billion of the securities, that amount on cloud services Corp. and affiliates of the The state-controlled com- look to boost their exposure,
he said. The bonds will help finance “social aspects of govern- with Microsoft over the next 10 London Stock Exchange Group Canada Pension Plan Invest- pany is seeking equity inves- Aramco has reached out to PE with Eni SpA considering a
ance, economic development, environmental issues, but also years. The partnership will CEO David Schwimmer REUTERS ment Board and Singapore’s tors that could help fund the firms that invest in infra. REUTERS takeover of explorer Neptune
future projects mainly concerning the ambition of the govern- speed up the migration of its GIC, according to the state- development of midstream Energy Group Ltd., Bloom-
ment to be free of coal by 2030,” he said. BLOOMBERG markets to the cloud and allow investors for information that ment. Thomson Reuters said and downstream projects at and storage projects, pipelines berg News has reported.
it to develop new products and gives them an edge in increas- in a statement it plans to use its Jafurah in the east of the king- and hydrogen plants, the peo- Jafurah is a key part of Saudi
services, it said Monday. ingly fast electronic markets. proceeds from the transaction dom, the people said, asking ple said. Arabia’s strategy to diversify
Scientists make breakthrough in The transaction adds to a Global spending on finan- “to pursue organic and inor- not to be identified as the Investment bank Evercore its energy exports beyond oil.
recent trend of exchanges and cial market data and news rose ganic opportunities in key information is private. Inc. is advising Aramco on the The field is estimated to hold
nuclear fusion energy, claims US tech firms linking up after sim- 7.4% to a record $35.6 billion growth segments and provide Aramco has reached out to plans, the people said. Talks 200 trillion cubic feet of raw
Scientists in California have made a breakthrough in nuclear ilar partnerships between Nas- in 2021, according to an April returns to shareholders.” private equity firms and other are still at an early stage and gas, and Aramco expects to
fusion technology, producing more energy than consumed in a daq Inc. and Amazon.com Inc., report by Burton-Taylor Inter- LSEG’s shares were up 3.2% large funds that invest in infra- details of the funding could begin production there in
reaction for the first time. It was done at the US Department of as well as Alphabet Inc.’s Goo- national Consulting. at 11:37 am in London. The deal structure as part of the plans, change, the people said. A rep- 2025, reaching about 2 billion
Energy’s Lawrence Livermore National Laboratory near San gle and CME Group. It points “We will be generating underlines LSEG’s increasing which could offer stakes in resentative for Aramco standard cubic feet per day of
Francisco, a person familiar with the research said.BLOOMBERG to increased demand from meaningful revenue growth in focus on data and analytics. assets such as carbon capture declined to comment, while a sales by 2030.
China’s rapid covid reversal strategy sparks whiplash as cases surge

Bloomberg anecdotal evidence suggests at a briefing on Monday, adding workers fall ill or are deployed private insurance are more The turmoil unleashed by
feedback@livemint.com the caseload is many times the that the rapidly spreading out- to makeshift covid hospitals, likely to go to private hospitals the government’s rapid rever-
government’s tally of 1,133 for break has put significant short- local media including Caixin for relatively limited services. sal of three years of covid Zero
C
ovid is rapidly spread- Sunday. Long lines have term pressure on medical servi- reported. Facilities are delaying China’s State Council has urged comes as sub-zero tempera-
ing through Chinese formed outside of hospitals and ces and drug supplies. “It is our or suspending treatments such medical institutions to offer tures see the virus set to race
households and offices people are struggling to find shared objective to return to as dialysis or chemotherapy, it services online, including through the population and as
after the country’s pandemic medicine, while delivery servi- normal life and production as reported. Elsewhere, a doctor 24-hour consultation services. China’s elderly remain under-
rules were unexpectedly ces have been interrupted as soon as possible.” at a private hospital in Shang- Intelligence from inside the vaccinated, raising concerns
unwound last week, sparking couriers become sick. Doctors and nurses in at least hai, who asked health-care sys- that the country’s shift has
confusion on the ground as ill- State media is urging people one Beijing hospital have been not to be identi- State media is tem points to a come too quickly and with too
prepared hospitals struggle to not to call the capital’s emer- asked to keep reporting for fied because he urging people not s u b s t a n t i a l little preparation. The govern-
deal with a surge in cases. gency medical hotline unless duty even if they’ve caught isn’t authorized to to call capital’s increase in infec- ment’s control infrastructure
Despite pleas from state they are severely ill, cautioning covid, if their symptoms are speak publicly, emergency tions that has ren- continues to be dismantled at a
media and health experts for that an influx of requests for mild, said a medical worker, said he hasn’t seen dered official rapid pace, with a national
medical hotline
people to self medicate and help is preventing those in crit- while health-care staff in a flood of patients numbers — that mobile app that was previously
recover at home, many citizens ical need of assistance from get- another hospital in the city’s and those he does unless they are show national used to track people’s travel
— fearful of the virus after three ting through. The city has more downtown area have been People queue outside a fever clinic amid the covid-19 pandemic see have only mild severely ill infections at the history to be scrapped from
years of propaganda that than tripled the number of summoned back to work from in Beijing on Monday. AFP symptoms. The lowest in a month Tuesday.
painted it as dangerous — are fever clinics and pledged to holiday, according to another. doctor said he — meaningless. As Some measures aimed at
flocking to hospitals. Some open more, while officials The workers asked not to be Directives issued to doctors but inevitable, they said. reassures them and tells them yet it’s unclear if the govern- easing the strain have faltered
facilities are struggling to find asked residents to seek treat- identified as they’re not autho- and nurses have changed fre- China’s covid shift is playing to go home. ment is willing to disclose the in the face of surging infections.
enough staff and others are sus- ment at community clinics rized to speak publicly. quently over the past two out in different ways across the Most Chinese people seek true picture of its outbreak: While the NHC had asked hos-
pending non-covid treatments instead of going to major hospi- Another worker at a separate weeks, while the intensity of vast country, in a likely reflec- care from public hospitals even officially, China hasn’t reported pitals to create buffer zones and
as health-care workers say tals. facility in Beijing said they were testing of the facility’s staff has tion of how the coming months for minor ailments, as their any covid fatalities since the special wards to prevent the
they’re scrambling to meet “It takes time to optimize surprised by the speed at which eased to two days per week will unfold. Some hospitals in expenses will be reimbursed pivot began, and critical cases, virus rampaging through hos-
demand for care following control measures and a stable covid controls have been eased, from daily, said the person, who large cities including Guang- with state medical insurance which the National Health pitals, local media reported
China’s covid Zero reversal. transition does not come eas- as it left hospitals with little asked not to be identified zhou, Wuhan and Shijiazhu- that covers over 95% of the 1.4 Commission, or NHC, reports on-the-ground implementa-
Scenes of disruption are easily,” Xu Hejian, the Beijing city time to make proper adjust- because the information isn’t ang, near Beijing, reported staff billion-strong population. every day, were at the low level tion has become all but impos-
ily visible in Beijing, where government’s spokesman, said ments. public. Infection has become all shortages of as much as 20% as Meanwhile, urban elites with of 141 for Sunday. sible as the virus spreads.
LIVEMINT.COM NeWs Wrap TuesDay, 13 December 2022
New Delhi 09
TWEETS & QUOTES

Suchitra Ella Robert Reich Monica Jasuja
Sanjeev Sanyal Co-founder & MD @RBReich Head, Money Management,
@sanjeevsanyal BharatBiotech Co-founder GoTo Financial
Chief economic advisor Air India @Tatas should top Inequality Media In the next six months, the
It should be clear that prioritize training & retraining Say it with me: To Indian Fintech sector is likely to
the reversal of pension all ground staff for improved control inflation, we experience more turbulence &
reforms is injustice to customer handling, commu- must take aim at upheaval. Not a warning, but an
the young and to future nication, mannerisms, behav- corporate profits, not interpretation given the blatant
generations iour & civic sense working people warning signs we are seeing
Steel output grows JINGLE BELLS Santy Sajan is COO

5% in November of Paras Healthcare
I P
ndia’s crude steel output rose by about 5% to aras Healthcare on Monday said it has
10.34 million tonne (MT) in November 2022, appointed Santy Sajan as its group chief
according to SteelMint India. operating officer (GCOO). Sajan would be
As per the research firm, the top six steel responsible for establishing and delivering long-
makers—SAIL, Tata Steel, JSW Steel, JSPL, term strategic growth plans for the organisation.
AMNS India and RINL—produced 6.28 MT Paras Healthcare is expanding its operations
steel and the rest 4.06 MT came from the across the country post-pandemic, and the
secondary sector. hiring of Sajan is part of this expansion strategy,
The country had produced 9.88 MT of steel Paras Healthcare said in a statement. The
during the same month of 2021, the SteelMint healthcare provider opened its sixth hospital in
data showed. Ranchi this year and plans to open two more
In November 2021, large producers jointly hospitals—in Srinagar and Kanpur—in the next
manufactured 6.09 MT steel, while the six months. Before joining Paras Healthcare,
secondary industry produced 3.79 MT, it Sajan was the COO of Apollo Hospitals, Chennai
added. and the cluster-1 Hospitals. “She (Sajan) has deep
The production of finished steel rose 3.41% industry knowledge and experience and brings
to 9.55 MT from 9.23 MT in November last an impressive track record of strategic planning
year. and execution that has resulted in sustained
The consumption of the alloy surged 13.42% operational excellence,” Paras Healthcare MD
to 9.66 MT in November against 8.52 MT a year Dharminder Nagar stated. PTI
ago. PTI
A Santa Claus statue being readied ahead of Christmas celebrations in Kolkata on Monday. PTI
Indian, Chinese troops clash ECLGS has sanctioned collateral-free loans

amounting to ₹3.58 trillion till June-end. HT
External affairs minister S. Jaishankar.
‘India, UAE to shape

PTI
along LAC in Tawang on 9 Dec ECLGS benefitted

11.9mn businesses
changing world’
T
he central government’s flagship credit
I
ndia and the UAE which have inked a scheme for MSMEs, Emergency Credit
landmark trade deal have seen a “veritable Both sides disengaged quickly from the area; commanders hold flag meeting Line Guarantee Scheme (ECLGS), has
transformation” in their ties which are now benefitted around 11.9 million businesses as of
beginning to have a broader ripple impact, 30 November, minister of state finance
external affairs minister S. Jaishankar said on Agencies counterpart to discuss the issue in accordance with Tensions along the nations’ disputed border Bhagwat Kishanrao Karad said on Monday.
Monday, emphasising that they want to use this feedback@livemint.com structured mechanisms to restore peace and tran- have simmered since the June 2020 clash—the Launched in May 2020, the scheme has
relationship to shape the changing world. new delHI quillity,” the source said. worst in more than 40 years—left at least 20 Indian sanctioned collateral-free loans amounting to
A defining decision of this transformation is “In certain areas along the LAC in the Tawang and at least four Chinese soldiers dead. ₹3.58 trillion till June-end.
I
the signing of the bilateral trade pact which led ndian and Chinese soldiers clashed at a location Sector in Arunachal Pradesh there are areas of dif- That fighting was centered around the Himala- In a written reply to a question in the Lok
to such effective results and speaks volumes for along the Line of Actual Control (LAC) in the fering perception, wherein both sides patrol the yan region of Ladakh, along their disputed 3,488 Sabha, the minister said, “As on 30 November,
the bilateral relationship, he said. Tawang sector of Arunachal Pradesh on 9 area up to their claim km border known as guarantees amounting to ₹3.58 trillion have
“The fact that we were able to conclude the December, resulting in minor injuries to a few lines. This has been the Line of Actual been issued under ECLGS, benefiting 11.9
comprehensive economic cooperation personnel from both sides, military sources the trend since Tensions along the border have Control. million borrowers.”
agreement so quickly and has led to such said on Monday. 2006,” the source simmered since June 2020 clash Arunachal Pra- The minister stated, 100% credit guarantee
effective results thereafter, speaks really They said the Indian troops resolutely con- said. desh, the scene of is extended to the lending institutions for loans
volumes for the relationship. We’re now moving fronted the Chinese PLA soldiers. The officials gave which left at least 20 Indian and 4 Friday’s violence, extended by them under the scheme to eligible
into new areas,” he said while delivering the “On 9 December, PLA troops contacted the LAC no details on the Chinese soldiers dead was where much of borrowers. Karad said that most of the MSME
keynote address at India Global Forum and in Tawang Sector which was contested by our nature of the fight- the 1962 India-China borrowers have loans outstanding up to ₹50
panel discussion—India-UAE: Partners for troops in a firm and resolute manner. This face-off ing or the number of war played out. crore. SAURAV ANAND
Global Impact. India and the UAE signed UAE- led to minor injuries to few personnel from both troops involved. It comes as the two sides have made significant
India Comprehensive Economic Partnership sides,” said a source. A spokesperson for ministry of defence declined progress to diffuse tensions—some 16 rounds of
Agreement (CEPA) in February this year. The sources said both sides immediately disen- to comment. There was no immediate comment or talks between military commanders on both sides
The UAE is India’s the third largest trade
partner and it is India’s second largest export
gaged from the area.
“As a follow up to the incident, our Commander
confirmation from Beijing of the Indian account of have taken place—and have moved their troops
Friday’s events. The incident has been widely back from some locations where the 2020 skir-
Himalaya Finance
market. PTI in the area held a Flag Meeting with his (Chinese) reported in the local Indian media on Monday. mishes were located.
buys stakes in PSP
H
imalaya Finance purchased one million
3,560 firms have shares of PSP Projects aggregating
Patel takes oath as Gujarat CM ₹6,552.5 crore through a bulk deal on the
Chinese directors National Sock Exchange (NSE).
The shares were purchased at ₹655.25.
Sixteen other ministers, including eight PSP Projects’ promoter Shilpaben Patel sold
T
he government on Monday said there are of cabinet rank, were also sworn in. The 1.2 million shares at ₹655.25-670.25 per piece.
3,560 companies in India that have new entrants include 11 former ministers. PSP Projects has secured orders worth ₹120
Chinese directors. In a written reply to the Patel was administered the oath as the crore in institutional and Industrial categories.
Lok Sabha, minister of state for corporate affairs 18th chief minister by governor Acharya The company has total order inflow for FY23
Rao Inderjit Singh said there are 174 Chinese Devvrat at a function held at the Helipad (Apr-Mar) stands at ₹1,948 crore.
companies that are registered in the country as Ground near the new Secretariat. Shares of PSP Projects Ltd closed 6.32%
foreign companies having place of business in The Cabinet ministers include Kanu higher on Monday at ₹703.70 on the NSE.
India with the ministry. “... as per the CDM Desai, Rishikesh Patel, Raghvji Patel, The stock counter witnessed 122,000 shares
database, there are 3,560 companies in India Balvantsinh Rajput, Kunvarji Bavaliya, traded of which 40,503 shares changing hands .
which have Chinese directors. It is not possible Mulu Bera, Kuber Dindor, and Bhanuben The share made a new 52 week high of ₹718 ,
to give the number of companies having Babariya. Harsh Sanghvi and Jagdish State-owned AAI has leased out six airports before shedding some of the gains to close up
Chinese investors/ shareholders as the data is Vishwakarma were sworn in as ministers through an open competitive bidding process. MINT 6.13% at ₹706.6.
not separately maintained in the MCA system,” Sixteen other ministers, including eight of of state with an independent charge. The It has risen from a 52 week low of ₹446.65 a
he said. The Corporate Data Management portal
has been developed as an in-house data analytics
cabinet rank, were also sworn in. PTI six other ministers of the state include
Parshottam Solanki, Bachu Khabad,
AAI gets ₹711 cr year ago. RAM SAHGAL
B from six airports

and business intelligence unit. The government haratiya Janata Party (BJP) leader Mukesh Patel, Praful Pansheriya, Kuverji
has amended certain rules and forms prescribed Bhupendra Patel on Monday took Halpati and Bhikhusinh Parmar.
under the Companies Act, 2013 to regulate the oath as the chief minister of Gujarat Of the 11 former ministers who were
Shaji takes over as
T
incorporation of companies, the appointment of for a second straight term in Gandhinagar inducted into the Bhupendra Patel he Airports Authority of India (AAI) has
directors, issuance & transfer of securities and
undertaking compromise, arrangements &
in a ceremony attended by PM Narendra
Modi, Union ministers, and chief
government 2.0, seven were part of the
government led by him from September
received concession fee of ₹710.88 crore
from the six airports, including at NABARD chairman
amalgamation in cases where Land Border ministers of BJP-ruled states. 2021 to December 2022. PTI Guwahati and Thiruvananthapuram, that were
S
Countries Entities (LBCEs) are involved. PTI leased out on public private partnership in the haji K V has taken the charge as chairman
last five years. State-owned AAI has leased out of National Bank for Agriculture and Rural
six airports—at Lucknow, Ahmedabad, Development (NABARD) with effect from
Mangaluru, Jaipur, Guwahati and 7 December, the government on Monday
‘RRR’ nominated for Golden Globe best film in non-English category Thiruvananthapuram—through an open
competitive bidding process in the last five
informed Parliament.
He has taken over from Suchindra Misra,
years. They were bid out for better operations, additional secretary, department of financial
S.
S. Rajamouli’s period action film “RRR” has scooped nominations in management and development under the services, ministry of finance, who was holding
two categories at the upcoming Golden Globe Awards—Best Picture— public private partnership (PPP). “Till October additional charge, minister of state for finance
Non-English and Best Original Song—Motion Picture. 2022, AAI has received concession fees of Bhagwat Karad said in a written reply to the Lok
The Hollywood Foreign Press Association (HFPA) shared the announcement ₹710.88 crore from the concessionaires for these Sabha. Further, Karad said there are two board
on the official website of the Golden Globe Awards on Monday evening. six airports,” minister of state for civil aviation V. level vacancies in the organization while 514
In the Best Picture—Non-English segment, “RRR”, a pan-India blockbuster, K. Singh said. For Ahmedabad airport, AAI vacancies are at the group A level.
will face off with Korean romantic mystery film “Decision To Leave”, German received a one-time upfront payment of ₹314.03 Replying to a question, the minister said more
anti-war drama “All Quiet on the Western Front”, Argentine historical drama crore and ₹271.11 crore for Jaipur. The amounts than 1.2 million loans have been extended by
“Argentina, 1985”, and French-Dutch coming-of-age drama “Close”. were ₹602.51 crore for Lucknow, ₹507.56 crore public sector banks in rural areas across the
Starring Ram Charan and Jr NTR in the lead, “RRR” released worldwide in for Guwahati, ₹221.88 crore for Mangaluru and country for setting up business, after the covid
March in five languages —Telugu, Tamil, Kannada, Malayalam, and Hindi. It ₹431.97 crore for Thiruvananthapuram. The period, that is, from April 2020 to November
also stars Alia Bhatt and Ajay Devgn in key roles. upfront payment comprised investment in 2022.
The film’s Telugu track “Naatu Naatu”, composed by veteran music director capital work in progress and investment in Replying to another question, Karad said
MM Keeravaani and penned by Kala Bhairava and Rahul Sipligunj, has been regulated asset base, at which these airports public sector banks have hired about 86,996
nominated in the Original Song—Motion Picture category. PTI RRR director S.S. Rajamouli and the crew. AP were handed over to the concessionaires. PTI contractual employees for various activities. PTI
New Delhi LONG STORY LIVEMINT.COM
rePorTAge | TALkINg PoINTs | IdeAs | INsIghT | The boTTom LINe
JUST-IN-TIME: HOW FOXCONN

CorreCTed ITs INdIA ACT
The Taiwanese manufacturer was in a mess last December. It set its house in order at a crucial time
N Madhavan
madhavan.n@livemint.com
cHENNAi
O
n a mid-December morn-
ing, last year, 23-year-old
Lakshmi’s WhatsApp inbox
started buzzing with alarm-
ing messages.
Lakshmi, who works with Foxconn’s
mobile phone manufacturing facility at
Sriperumbudur, near Chennai, stayed at
the Pallava Hostel in the temple town of
Kanchipuram. She learnt that over 400
co-workers staying at another hostel at
Puduchatram, on the Chennai-Tirupati
highway, took ill. About 159 of them had
severe symptoms of food poisoning and
were admitted to hospitals.
“They vomited and had diarrhoea.
Some fainted too,” Lakshmi, who assem-
bles Apple’s iPhone 14 at the facility now,
recalls.
Foxconn is the world’s largest contract
electronics maker and is one of Apple’s
primary suppliers.
As days went by, the lack of informa-
tion about her hospitalized colleagues
began to increasingly agitate her and
other workers.
“News soon began to spread on our
WhatsApp group that two of the workers
died but the company officials neither
confirmed nor denied it,” says Priya,
another worker. “The panic that this cre-
ated brought us to the streets.”
Hundreds of young workers blocked
the busy Chennai-Bengaluru highway on
18 December. Their protest, which lasted
over 10 hours, exposed the poor living
conditions at the hostels run by the Fox-
conn group, especially Foxconn Hon Hai
Technology India Mega Development
Private Ltd, the company that assembles
iPhones in India. Another Foxconn com-
pany operating in India is Bharat FIH,
which makes handset and wireless com-
munications devices for local and interna-
tional brands.
The protests embarrassed the state gov-
ernment and the Centre—the govern-
ments had worked hard to woo Apple, and File photo of employees working on an assembly line in the mobile phone plant of Foxconn in Sriperumbudur, Tamil Nadu. BLOOMBERG
assembly operations in India were still in
its infancy. They swung into action. The
plant, which was predominantly making
iPhone 12 and iPhone 13 back then, was ment law stipulates that they should be “Earlier, we were treated like prison- mint electronics clusters like Hosur.
shut down. after 240 days, several workers and ers,” says Deepa. “On the whole, our life SHORT
STRONG SIGNAL Tamil Nadu has also unveiled a policy
On Christmas Day in 2021, the Tamil labour unions said. has improved a lot now.” STORY Foxconn Hon Hai is on a fast growth track, specific to electronics hardware manufac-
Nadu government announced that Fox- “I am the only breadwinner in the fam- Both Apple and Foxconn did not seeing a multifold rise in its business turing with an aim to create a strong sup-
conn was ready to restart production. The ily. My father is unwell and I have two respond to emails from Mint seeking clari- Income PAT ply-chain. “We want to build the entire
company had promised to improve the brothers who are still studying,” Deepa, fication and comments. WHAT Foxconn Hon Hai Tech India Mega Devlopment ecosystem so that players like Foxconn or
working and living conditions of tempo- another worker Mint spoke to, responds, Pvt Ltd Pegatron can source the bulk of their sup-
rary workers by expanding their living when asked why she put up with such liv- ‘Friend-sHoring is real’ Last year, many people working ply from within the state,” says Pooja Kulk-
5.4 899.9
areas, upgrading bathing facilities and ing conditions. You would hear similar
providing drinking water.
Has this happened?
stories from other workers—many of F oxconn could not have got its act
together at a more opportune time. Its
them come from bottom-of-the-pyramid biggest customer, Apple, is looking to
for Foxconn’s India factory were
hospitalized because of food
poisoning. This exposed the
-9.3
4,250.6
arni, MD and CEO of Guidance, Tamil
Nadu’s single window investment agency.
Similarly, states such as Uttar Pradesh,
Workers have reported encouraging households. reduce its ‘unhealthy reliance’ on China poor living conditions at the -250.0 Maharashtra, Andhra Pradesh and Karna-
progress. And encouraging developments Rajeev Chandrasekhar, minister of state by diversifying its sourcing. Today, 95% of hostels run by the company. FY19 taka are leaving no stone unturned to woo
FY20
FY21
-313.7
have been reported on the investment for electronics and information technol- all iPhones are manufactured in China– electronics companies.
front over the last one month. On 11 ogy, recalls coordinating with the state 80% from a single plant in Zhengzhou, These efforts are showing results. In
November, Reuters reported that Foxconn government to contain the fallout. The popularly called iPhone City. The Cuper- NEXT Bharat FIH Ltd (In crore)
2014, India imported 92% of the mobile
plans to boost its workforce at the Tamil Tamil Nadu government worked closely tino-based company’s exposure to China devices consumed in the country. In
Nadu plant to 70,000 by adding 53,000 with the Foxconn management for several is far more than other technology compa- The state government, Centre, 2021-22, 97% of the devices were manu-
more workers over the next two years. On days after the protests to draw up a plan. nies such as Amazon, HP, Microsoft, Cisco and Apple swung into action. factured locally and devices worth $5.8
34,392.4
8 December, Foxconn announced that it An embarrassed Apple apologised for Systems and Dell Technologies. Foxconn restructured the local FY19 billion were exported. In 2022-23, cell
injected $500 million into its India unit. the lapses and, on 29 December, put the This shift has attained a new urgency management, renovated worker 26,669.3 phone exports are expected to cross $9 bil-
And on 12 December, Mint reported that factory on ‘probation’. It also sent inde- due to China’s stringent covid-19 policy facilities. The living conditions FY20
lion, according to the ministry of electron-
Apple is likely to triple pendent auditors to and rapidly evolving geo-political situa- have now improved, workers say. ics and information technology.
-222.9
its production of investigate. tion in the world. There are reports of handset exports
iPhones assembled in Apple is investing more Foxconn, left with lit- In October, China’s attempts to control
389.7
topping $60 billion by 2027. Is it feasible?
India over the next two in countries like India. The tle option, acted quickly. the pandemic with strong measures led to NOW 15,906.7 “Past is not the indicator of the future in
years. It sent the workers home a mass exodus of workers and violence at FY21 18,199.3 the electronics sector. People will be sur-
Foxconn, it does company is expected to on paid leave. It then the Zhengzhou facility, which employs The developments come at an FY22 prised by how India will do,” says Chan-
appear, has corrected its restructured the local over 200,000 workers. These develop- opportune time. International 161.9 drasekhar. He estimates handset exports
produce 12 million iPhones brands want to diversify beyond 195.1
India act. And at the management, renovated ments hit iPhone production. Bloomberg to be even higher by 2027.
right time. International from India in 2022, from the facilities, and finally reported that the overall impact could be China. This shift has also attained Income includes revenues and other income. Analysts, however, remain cautious.
brands want to diversify re-opened the factory by as much as six million units. In the Q2 urgency due to a rapidly PAT: Profit after tax
While there is a strong headroom for
Source: Tofler, BSE, MCA
beyond China, and India 7 million in 2021. mid-January. It took the earnings call, Apple’s CEO Tim Cook evolving geo-political situation. growth, they suggest the need to learn
SARVESH KUMAR SHARMA/MINT
is, once again, wooing company many more warned that sales impact due to the China from China’s success. Low wages (in the
them. weeks before it regained full production. disruption and silicon shortage could be 1990s), abundant supply of labour, high
The living conditions have improved as high as $8 billion. Meanwhile, the rela- incentive (PLI) scheme for semiconduc- try. A peaceful industrial climate is key to productivity, strong eco-system and effi-
WHat cHanged today, say the workers. They are given tionship between China and the US has tors has been approved and the company, its future ambitions. Over the past one cient infrastructure played a part in the
L et’s circle back to some of the issues bunker beds, pillows and blankets. The irrevocably shifted from being ‘cooperat- along with Vedanta group, has announced
around “living conditions” that led to toilets have been renovated and are now ing rivals’ to ‘competing rivals’. Taiwan a $19.5 billion investment in Gujarat to set
the protests. cleaned many times a day. Running water continues to be a geopolitical flashpoint up a chip plant.
year, the state appears keen to plug policy country’s success.
gaps that led to the Foxconn protests. India’s wage cost is low (a Morgan Stan-
“As a state, we want to increase our ley study puts it at 80 cents/hour against
All workers were forced to stay only in is available and the quality of food has and analysts dread to think about the In the meantime, Indian state govern- manufacturing as a share of GSDP (Gross China’s $7.1 or Vietnam’s $1.6) and the
company-run hostels. They had to sleep improved substantially. Workers are free impact Apple will have if China invades ments and the Centre are hard at work— State Domestic Prod- supply of labour is large
on the floor as they were not provided to go out during holidays—the only condi- the island nation. they would like to see India as an attractive uct) from the current (471 million against
with a cot, pillow or even a blanket. As tion is that they should return by 6 pm. The iPhone maker is thus investing destination for electronics hardware man- 22% to 30% by 2030 A peaceful industrial Indonesia’s 139 million
many as 12-15 people were packed in a 150 The company also does not insist that more in countries like India and Vietnam. ufacturing. The Modi government’s and for that, electronics climate is key to Tamil Nadu’s or Thailand’s 39 mil-
sq ft room. Toilets, each shared by 20 or all employees stay in hostels. “Only about Experts tracking phone shipments have Phased Manufacturing Programme and hardware manufactur- lion).
30 people, were unclean. There was no 50% of the workers, especially the new said that its procurement from India has its successor, the PLI Scheme, has already ing is critical,” says ambitions. The state But India may lose out
running water. “Water was provided for staff, stay in hostels,” says Nithya, a risen from 1.5% in 2020 to 3% in 2021. It is attracted many companies. Besides Tai- S.Krishnan, industry appears keen to plug because of inflexible
an hour, two hours before the shift,” says worker. She chose to stay in a rented expected to touch 7% this year. Apple is wanese majors such as Foxconn, Pegatron secretary, Government labour laws, the difficulty
Priya. For the 6 am shift, water was made accommodation. expected to produce 12 million iPhones and Wistron expanding India operations, of Tamil Nadu. He is policy gaps that led to the of doing business, lack of
available at 3 am for the workers to get All this has brought down the worker from India in 2022, from about 7 million Google, too, is reportedly keen on making now focussing on an free trade agreements
ready. density in hostels. And now, contract in 2021. According to a JP Morgan report, its Pixel smartphones in India. important pain point— Foxconn protests. (Vietnam and Thailand
As contract workers, they just got two employees who have put in a year’s work India will account for 25% of iPhone pro- “The dominance of China in the elec- industrial housing for score here), absence of
days’ leave in a year apart from weekly offs or more, are being absorbed as permanent duction by 2025. tronics global value chain is shifting. The those working in the electronics hard- industrial housing, higher power costs,
and public holidays. “If we take leave for staff with better benefits. Several workers Foxconn’s chairman Young Liu visited need for more diversified and trusted sup- ware sector. Too often, India’s industrial and not-so-efficient infrastructure. India’s
the third day, we will be marked as said wages have also increased since July. India in June this year and met with Prime pliers like India is being felt. Friend-shor- workers are pushed to live in slums. And air freight costs, for instance, are double
‘absconding’ and sent home,” says A worker with 18-24 months of experience Minister Narendra Modi. Later, during the ing is real,” Chandrasekhar says. company-run hostels, like the Foxconn that of China’s.
Lakshmi. The process to get permission earns a gross salary of ₹20,000 now. Ear- company’s Q2 earnings call in August, he incident from last year highlighted, are Meanwhile, many of Foxconn’s workers
to step out of the hostel on holidays was lier, they made about ₹13,000. S Kannan, said that India will play a very important Housing and more not always perfect. are unaware of these economic nuances.
too labourious for the two-hour freedom deputy general secretary of CITU Tamil role in the future and that Foxconn’s
they got. Contract workers were not made Nadu, a trade union, attributes this investment in India would ‘get better and T amil Nadu has been at the forefront in
wooing electronics hardware manu-
permanent even after a year of doing a increase more to the rise in minimum better’. Since then, Foxconn group’s pro- facturers and currently accounts for 40%
The state government has allotted 20 Lakshmi, Priya and Deepa are happy and
acres to Foxconn near its plant to build hopeful. With the narrative of China + 1
housing facilities for its workers. It is also gaining ground, they see higher demand
core job though a Tamil Nadu govern- wages as mandated by law. posal under India’s production-linked of all cell phones exported out of the coun- investing to create such facilities at other for jobs, going ahead.
LIVEMINT.COM MINT MONEY TuesDay, 13 December 2022
NeW Delhi 11
Is the rise of AIFs the barometer of POWER

POINT
growing income inequality in India? ABHISHEK BONDIA
We welcome your views and comments at

mintmoney@livemint.com
THE IGNORED NEED

The AIF space has witnessed the sharpest growth in the investment industry with 50% CAGR in the past 5 years
OF INSURANCE BY
Satya Sontanam
satya.sontanam@livemint.com
Overview of AIF industry
lower tax efficiency these categories
of funds come with. Note that AIF
benchmarking in India is still in its
SMALL BUSINESSES
T
he alternative investment Investors’ willingness to take higher risks with unlisted equity and private credit, resulted in significant inflows nascent stage and due to the diverse
into the AIF industry. Crisil's recent report - The big shift in financialisation begins in India - highlights a few
A
fund (AIF) space has wit- nature of investment themes that s I was thinking about topics for this column, I was in two
nessed the sharpest growth key stats in the industry. each AIF adopts, there is a possibility minds whether to write about the need for insurance for
in the investment industry The AIF industry witnessed highest growth Break-up of the investment industry of combining not-like-to-like funds small businesses or not. It is not a very popular topic. The
in the past five years with in the last five years 4.4 while taking a category average. next morning, I read about the fire incident at the Bhagirath Pal-
over 50% compound annual growth Elevated by low-based effect AIFs* Also, most of the AIFs, as per Crisil, ace at Chandni Chowk, Delhi. More than 120 shops were esti-
PMS
CAGR FY17-22 (in %) 6.4
rate (CAGR)as of FY22. This is as per are yet to complete their life cycle and mated to be gutted with a cumulative loss of over ₹500 crore. I
Crisil’s recent report called— ‘The big
AIFs 50 distribute a large portion of their could no longer sit on the fence. A large majority of these shops
shift in financialisation begins in PMS 19 portfolio, so the attractiveness of the would have been uninsured. This would mean their life’s savings
Life
India’, which highlights the trends in Retirement funds* 19 insurance AIF space can be assessed only in the would get wiped out in a matter of days.
Retirement 33.3 AUM FY22 52.5
the Indian investment industry. Mutual Funds 16 funds ( trillion) next few years. Impact of a fire incident on a small business is multi-fold. First,
An AIF is a privately pooled invest- Life insurance 13 Jiju Vidyadharan and Piyush Gupta they lose most of their capital, which is in the form of stocks,
ment vehicle with a minimum invest- from Crisil Market Intelli- machinery, fittings, and other immovable assets. Second, most
FD 10
ment amount requirement of ₹1 crore 38.4 gence and Analytics, who authored businesses would have creditors to pay for the stock or assets with
PMS: Portfolio Management Services AIF money represent commitments raised
(it is ₹25 lakh for a venture capital *Includes NPS, APY and PFs MF the new report on investment indus- them, which still remains outstanding. Unless these creditors are
fund) that provides access to uncon- try said, “The ability of fund manag- paid, the entrepreneurs have limited ability to revive their supply
ventional asset classes such as private Category I and II forms significant part of the AIF industry's AUM ers to make timely exits from their chain. Third, many take working capital loans from banks and
equity, pre-IPO funds, hedge funds or Capital drawdown ( crore) Industry players wish Cat III portfolio companies at favourable NBFCs. Typically, these loans are against collateral of company
simple funds claiming to have higher taxation at par with Cat I & II valuations will be a key factor that will assets and in many cases personal assets of the entrepreneur.
Venture capital fund (Cat I) 14,426
alpha-generating capabilities. These Cat I and Cat II decide the experience that an AIF These institutions would come after the borrower to attach their
Equity funds – unlisted (Cat II) 33,733 Tax pass-through status
funds come under the purview of the investor will have.” collateral and recover the loan. Fourth, the income-generating
Securities and Exchange Board of Equity funds – listed + unlisted (Cat II) 44,706 (taxes in the hands of
capacity of the individual gets substantially impacted, as the
investors)
India’s (Sebi) AIF regulations. Real estate funds (Cat II) 38,190 INcomE INEqualITy? assets used to generate income are impaired. So, entrepreneurs
Cat III
Around 56% of the 881 AIFs, as of Debt funds (Cat II) 22,460 At fund level (depending Saurabh Mukherjea, founder, of Mar- have to cover regular expenses from whatever savings they have.
March 2022, were registered with Other categories (Cat I and II) 49,353 on the legal structure of cellus Investment Managers believes Finally, businesses have to usually borrow money to reinstate
Sebi in the last four years, as per #Capital drawdown is the capital called by AIF out of the capital committed by the investor
the AIF) that the growth in the stock market/ their damaged assets. Such loans are taken at distress interest
Crisil. “Awareness about the AIF *as of September 2021 AIF space is in part a manifestation of rates, thus leaving a dent in the business income for several years.
investment product has increased the polarization of the Indian econ- While we discussed fire incidents, similar catastrophic loss
manifold in the last few years. One big Performance of AIFs - Poor show from Cat III category omy around a couple of efficient could happen due to natural disasters or accidents such as aircraft
driver for that was the Franklin Tem- Based on CRISIL AIF benchmarking report companies in every sector. crashes. Some of these accidents seem improbable. But, so was
pleton’s debt fund crisis (when the Returns of unlisted equity funds for the vintage year FY16 Returns of listed equity funds in Cat III
“As corporate profitability polar- the pandemic. The important point here is that while the proba-
AMC shut down a few debt funds in Vintage year FY16 includes all schemes in the category which deployed (CAGR %) izes every year with 7-8 lakh small bility of such incidents is low, the
2020 due to sudden redemption investment for the first time in the financial year Long-only equity funds businesses shutting down, the for- A public liability severity of damage can ruin one’s life.
pressure), which resulted in credit (CAGR %) Long-short equity funds S&P BSE Sensex TRI malization of the economy and con- insurance is Thankfully, insurers price the low
becoming part of the AIF territory. 6 solidation in the market share in the probability of these incidents into the
The second big contributor has been Real estate
19 19
18 hands of a few companies in every meant to cover insurance premium. The cost of cover-
the low-interest rate regime across 36 24
funds (Cat II) sector accelerates. This results in damages to ing all the above risks for a regular
20 20 13 13 12
the globe, which resulted in funds both income and wealth inequality in others due to shop is less than 0.1% of the value of the
channelling to alternates in search of 9 our country,” added Mukherjea. your business assets. So, over 100 years, you don’t
higher yield,” said Vineet Sukumar, He, however, believes that India is even pay 10% of the value of the asset as
founder and MD at Vivriti Group. Venture S&P BSE Equity Funds S&P BSE Debt funds following a fairly classical economic premium. Such premiums also need to
The phenomenal growth in the AIF Capital Funds Sensex – Unlisted Sensex (for FY17 vintage 3-year 5-year cycle. “Economic development be paid only annually. The recurring cost relative to the sum
(Cat I) (market) (Cat II) (market) year) (Cat II) *Retirns as on September 2021
industry, which is accessible only to across the world, including other assured at risk is negligible. Another way to rationalize the cost
high-net-worth individuals (HNIs) Asian economies, typically all the way would be to compare it with the annual bank interest cost or elec-
Comparison between AIF, PMS and MF
and ultra-high-net-worth individuals up to $10,000 per capita income tricity bill of the premises. The insurance cost is likely to be less
The IAAIF Survey Report 2022 highlights some of the differences between the three investment vehicles
(UHNIs) with a minimum ticket size tends to be associated with growing than both.
of ₹1 crore in most cases, brings into AIFs PMS MF inequality. India is on its journey to The small business fire insurance is now covered by two dedi-
question if it is an indicator of grow- Approach Investor money A separate portfolio is Investor money the $10,000 mark and thus, we are cated products i.e., Bharat Sookshma Udyam Suraksha, which
ing income inequality in the country. is pooled maintained for every client is pooled living through income inequality,” he covers businesses with total assets of up to ₹5 crore, and Bharat
To put this in perspective, the retail Fee structure Management fee Management fee + profit sharing; Expense ratio between added. Laghu Udyam Suraksha, which covers businesses with total
+ performance fee operational expenses fee capped 1.50% to 2.50%
investors’ favourite, the mutual fund at 0.50% per annum of AUM
Nikhil Kamath, co-founder of assets valued between ₹5 and ₹50 crore. Some of the built-in cov-
industry, grew by about 16% CAGR in Zerodha and True Beacon that has erages of these plans are very policyholder-friendly. One of these
Capability to customize Medium High None
the said period. both PMS and AIF funds under its covers is the ‘waiver of under-insurance’ clause of up to 15%.
Sharing with Can choose to share the fee No upfront commission, No upfront commission,
Of course, the low base of the AIF with intermediaries only trail commission only trail commission
umbrella, says, “Any suggestion that Often, businesses miss out adding some assets in the policy. This
intermediaries
industry makes the growth figures India’s booming AIF sector has been used to cause deductions at the time of claim settlement. Thank-
High: In the case of Category I Low: No specific requirement Medium: Key employees of
look optically elevated. The assets and II of AIFs, manager's share - the AMC to mandatorily precipitated by growing income ine- fully, with this clause, there would be no deduction for up to 15%
under management (AUM) of mutual Skin in the game at least 2.5% of the corpus, or, invest a minimum of 20% of quality would be a mischaracteriza- of under-insurance. Through products like the above, the regula-
funds and the AIF industry stood at 5 crores, whichever is lower. For the salary* tion of India’s socio-economic and tor is pushing for reforms to make insurance more accessible.
₹38.4 trillion and ₹6.4 trillion, Category III AIFs, a manager's financial landscape. As an emerging Apart from the built-in coverage, there are two covers that I
share - at least 5% of the corpus,
respectively, as of FY 22 (see table). or, 10 crores, whichever is lower. economy with a nascent financial sec- recommend considering. First is Fire Loss of Profit (Flop). Under
Category II AIF space attracted sig- Sebi (Alternative Investment Sebi (Portfolio Managers) Sebi Regulations 1996
tor, growth in Indian AIFs reveals this, business gets indemnified for the loss of gross profit and
Regulatory
nificant interest with a lion’s share of framework Funds) Regulations 2012 Regulations 1993 augmented appetite and capacity fixed expenses for the duration of reinstatement. This ensures
capital allocated to this segment that *Salary/ perks/ bonus/ noncash compensation (gross annual CTC) net of income tax and any statutory contributions,
among middle-class citizens to that the entrepreneur does not need to eat into their savings to
includes private equity funds, real i.e., PF and NPS, in the units of Mutual Fund schemes in which they have a role/ oversight. become participants in their coun- meet their day-to-day expenses. A Flop insurance costs less than
estate funds and debt funds. This cat- try’s economy due to regulatory 0.1% of the annual gross profit value and fixed expenses. Second,
egory is said to offer the maximum Investors' willingness Management fee Performance fee relaxation. Aside from a growing is that of a public liability insurance. This is meant to cover dama-
level of customization and innovation to pay AIF fund fee > 1%* (as a % of AUM) 10%-12.5%** (generally, as a % of profits) middle-class investor base, AIF sector ges to others due to your business. For instance, a fire that starts
in the alternates space that HNIs and As per the IAAIF Survey 2022 *Based on the response by 88% of participants, **based on the response by 55% of the participants growth also reveals a demand from its from your place and spreads to other premises; owners of other
UHNIs have been looking for. Source - CRISIL report on ‘The big shift in financialisation begins in India and AIF Benchmarking; IAAIF Survey 2022; wealthiest citizens—most of whom businesses could sue you for negligence. In such cases, the policy
For the uninitiated, an AIF comes inputs from DP Singh, Executive Director at SBI Mutual Fund were already involved in financial pays for lawyer fees and any compensation awarded by the court.
GRAPHIC: PARAS JAIN/MINT
in three different categories. Cate- markets—to take advantage of these It costs around ₹3,000 for a ₹10 lakh public liability insurance.
gory I funds invest in startups or ear- more sophisticated investment strat- Several years ago, we had set up a small team to serve business
ly-stage ventures. Category III funds egies now available to them. marketplaces such as Bhagirath Palace. We got resounding sup-
such as hedge funds employ diverse companies) also leads to the faster THE REsulTs times with an average outperform- Although wealth inequality is a real port from the local shopkeepers’ associations. The office bearers
or complex trading strategies for growth of private credit funds within Investors’ willingness to take higher ance by a good 20 percentage points and growing problem in India, AIF of these associations appreciated the need for insurance. How-
investment in listed or unlisted secu- Category II funds. “AIFs lending to risks with startups and unlisted in a three to five-year period as of sector growth should be regarded not ever, individual shopkeepers required a little nudging. It was an
rities/derivatives. Category II is a the unmet credit needs of mid and equity space, resulted in these funds FY21. as being indicative of the problem, avoidable expense for them. Unfortunately, we had to shut the
residual category that doesn’t fit Cat- small-size companies and making forming a significant portion of assets The performance of unlisted but as part of the solution.” pilot and focus on online inbound leads. Ironically, those who
egory I or III. money available for long-term is under management of AIFs. equity funds (Cat II), is mixed. The Many other experts think that the need insurance the most value it the least. With the Bhagirath
The growing credit requirement helping the structural rise of the AUM As per the Crisil AIF Benchmarks long-only equity AIFs in Category III growing AIF industry may not be an Palace incident, I feel it is our responsibility to take insurance to
from the mid and small-cap compa- in the private credit space of AIFs,” research, venture capital funds (Cate- couldn’t prove their outperformance indication of income inequality. the underserved and have restarted the pilot. Hopefully, the
nies and the drying up of financing said Vikas M Sachdeva, managing gory I) outperformed the public mar- during the same period, which brings (For an extended version of this small businesses would have moved along as well.
from NBFCs (Non-banking financing director of Sundaram Alternates. ket index—S&P BSE 500 TRI—most into question the higher fee and story, go to www.livemint.com) Abhishek Bondia is principal officer and MD at SecureNow.in
Returns on my investments How is an NRI taxed on house leased in India?

Building a portfolio is a complex exercise, and it has to be maintained, too. A person’s portfolio holds different types of assets based MINT
on his/her financial goals, and each asset class gives different types of returns, which is why a portfolio must have an ideal mix of Sonu Iyer ₹150,000). But this deduction
financial products. One must also keep in mind the volatility risk of the asset class, liquidity, lock-in rules and taxation. Here's a look is not available if the individual
at how four commonly used asset types—equity, cash, gold and fixed income—have done in different periods. I will become a non-resi- opts for benefit of lower tax
dent Indian (NRI) this rate under the new tax regime
Returns (in %) financial year for tax pur- under section 115BAC.
15.66 %
that
Equity (Sensex) Cash (liquid fund)
poses. I own one property
in Delhi, which has been
Besides, any loss incurred
under income from house
The return given
Gold Fixed income (fixed deposit) leased out for five years. property would not be
h a s
Sensex -year Which ITR form should I allowed to be set-off against
over a 3 fill? any other income and carried
period 15.66 — Name withheld on request forward under new tax regime.
13.48 As a non-resident under the
13.29
12.16 12.41 Rental income from the India I-T law, you may file your
12.58 property situated in India is ASK MINT than NAV less 30% standard ITR under ITR-2 (if you do not
8.5 taxable in the hands of the m N R I TA X AT I O N deduction, such loss can be set have any business income) or
owner of the house. The off against income under other ITR-3 (if you have business
6.69 6.25 6.25 6.61
5.12 5.61 method of computing taxable heads of income only to the income). This may change
4.51 5.0
3.91 rental income is prescribed at which the property might be extent of ₹200,000 and the once the composite tax return
under the income-tax law as expected to be let out; or actual balance can be carried forward form is notified.
follows: rent received or receivable. for up to 8 years for set-off Sonu Iyer is tax partner and
Gross Annual Value (GAV) In other words, GAV com- against future income from people advisory services leader,
less municipal taxes actually pares the actual rent received the house. EY India.
paid gives the net annual value or receivable with expected Also, any repayment of
(NAV). Reduce standard rent that property would fetch. principal amount against Do you have a personal
1 YEAR 3 YEARS 5 YEARS 10 YEARS deduction of 30% of NAV and If there is loss under the housing loan taken from eligi- finance query? Send in your
interest on housing loan from head income from house ble lenders for acquisition of queries at
Data as on 9 December. Equity is the benchmark Sensex return (price); cash refers to the average return for liquid funds category as defined by
Valueresearchonline; gold refers to domestic gold prices available on Valueresearchonline; and fixed income is historic SBI fixed deposit rates. this, which will then be the property from let out property such property is also eligible mintmoney@livemint.com
All returns are annualized. and get them answered by
taxable rental income. due to interest expenditure on for deduction under section
PARAS JAIN/MINT Source: S&P Dow Jones Indices industry experts.
GAV is higher of the amount housing loan being higher 80C (maximum deduction is
12 TuesDay, 13 DeCember 2022
New Delhi VIEWS LIVEMINT.COM
OUR VIEW MY VIEW | TIGHTROPE WALK

ISTOCKPHOTO
Corporate cultures should make

space for everyone to speak out
Investing in rituals and spaces that allow minds to be spoken fearlessly is essential for innovation
eyed dreams of ‘commanding’ a pla- While I am not advocating a bar,

toon and I couldn’t even grant two days corporate cultures also need rituals
of outpass to troops under my very and haloed spaces where juniors can
command. As I walked out dejectedly disagree with seniors, advocate out-
and informed the three soldiers landish ideas and challenge the status
waiting expectantly with their bags quo without fear of adverse consequen-
packed that their outpass had been ces. Large process-driven organisations
denied, I felt powerless, demoralized have many spaces for conferring, dis-
and humiliated. cussions, debates and intense competi-
RAGHU RAMAN Later that evening, I was at the offi- tion, but almost no channels to defuse
is former and founding CEO of the National cer’s mess when a server informed me toxic situations, enable camaraderie or
Intelligence Grid, a distinguished fellow at that my company commander was on allow a sense of humour. It is a paradox
Observer Research Foundation and author the premises and had called me to the that organizations create outcome-
of ‘Everyman’s War’ bar. Though I was sulking, it was a oriented metrics to pit their leaders,
Today’s world is missing

summon and I had no option but to go. regions and functions against one
As soon as I entered, the major told another in fratricidal rivalry, and yet
the barman to pour me a drink. Still expect them to collaborate. Perhaps
moping, I mumbled a perfunctory this is the result of an education system
A
bout 30 years ago, the aftermath denial. That’s when my company that teaches students to be hypercom-
a champion of free trade of a basketball match taught me

two lessons, one about individ-
ual leadership and the other about
institutionalizing good leadership
commander taught me two valuable
lessons, both of which are worth their
weight in gold.
He said, “The bar is a haloed place,
petitive throughout their schooling and
then expects them to cooperate at the
end of it.
In a world that requires creativity
environments. I was a newly minted where any junior officer can speak his and constant innovation to retain a
lieutenant barely a month into service, mind to his senior, as if he was drunk, competitive edge, building institutions
The US rejection of a WTO panel’s recommendation asking it to comply with trade rules on posted in Sangrur, then a remote town even if he is a teetotaller.” “Only three and creating rituals of psychological
of Punjab. Our unit had just won a things can happen,” he continued, security is not a ‘nice to have’ luxury.
steel and aluminium tariffs is a big let-down. Barrier-free trade needs a loud and clear voice brigade basketball championship, “either I will convince you that I was Instead, it is an essential practice to
which was followed by enthusiastic right, or you will convince me that you leverage the full potential of an
celebrations, as such occasions merit. were right. Or the third possibility, employee’s intellectual and emotional
Three of the five members of the win- that both of us will disagree, but engagement. This is especially true in a
L
ast week, a dispute resolution panel of geopolitical rivals that could someday put US ning team were from my platoon and because the buck stops at me, it is my multi-generational work environment,
the World Trade Organization (WTO) advances in the shade. In true-blue Cold War they rushed up to me immediately after prerogative to pull rank on the deci- where even subtle hints of intimidation
the match, requesting an outpass: i.e., a sion. However, this drink will be on can wilt ingenuity.
said it had found import tariffs of tradition, the notion that China is a threat big short leave of absence, usually given to me! So that when we walk out from Leaders will therefore need to shift
25% on steel and 10% on aluminium enough to bend market logic to realpolitik now soldiers whose homes are nearby. this bar, we bury our differences from an authoritative style that relies
imposed by the US in 2018 to be appears to have bipartisan backing in the US. Since it was beyond my authority to behind us. Your dissent will be noted, purely on positional seniority to a
inconsistent with global trade norms. Panicky books on China’s rise by analysts like grant it, I headed over to my company but you will put your hundred percent ‘gardener’ style of leadership, where
The US had done this under its then President Peter Navarro, a Trump advisor, may have commander’s house for his approval, behind my decision.” the job description is understood as
quite certain that the major would He then proceeded to tell me that all including the role of a garden nurturer,
Donald Trump, who cited “national security” fanned fears behind this retreat of both eco- agree. After all, we had just won the the three soldiers who had asked for an responsible for ensuring adequate
for what was plainly an effort to win votes by nomic principle and seafaring sense, but it was brigade championship and it was outpass were in fact first cousins who nutrition, sunlight, and, most impor-
shielding an American ‘rust-belt’ from foreign not as if we have had no prior hints of it. In largely thanks to these three soldiers. wanted to attend the marriage of yet tantly, distance between each plant, so
competition. America later gave its free-trade 2002, when George W. Bush sought to erect When my commander asked me their another distant cousin in their village. that one plant’s growth does not stunt
partners Canada and Mexico a free pass, but barriers around the US steel market, later names and the reasons for an outpass Had they managed to wangle the out- another’s and each grows to its own
for each, I narrated what they had told pass based on their fibs, I would have individual potential. And this not only
the rumble of its drawbridges going up in ruled unfair by the WTO, it was clear that me. Two of them had sick family mem- been the laughing stock of the battalion. requires leaders to know each of their
those two heavy-tonnage markets nearly Washington would not live up to its rhetoric. bers and the third a legal dispute. The I would have been seen as a rookie taken team members closely, but also needs
sounded off a trade war. Retaliatory duties Like those it berates, it could turn statist on a major stared at me for a few moments for a ride by his troops. He added the some self-effacing humility, a sense
by other countries, including India, were to dime. While US steelmakers had cheered that and then abruptly denied the request. second lesson wryly: “Better do your job of humour and vulnerability, and an
follow. So also a clutch of protests filed at the move, just as they did 16 years on with makers I was stunned. Here I was, after rigor- and get to know your troops before ability to create rituals that defuse
ous training at the academy, with wide- becoming a rebel without a cause.” toxicity and foster camaraderie.
WTO. While the Indian and Russian cases are of another metal joining in, claims of gains for
still pending, suits by China, Norway, Switzer- the US economy have been dubious, at best.
land and Turkey yielded Friday’s WTO advice Users of the two metals have had to bear higher
asking the US to conform with its obligations costs. Yet, the reality that free trade cheapens
under the General Agreement on Tariffs and products all around and delivers net gains
Trade (GATT), 1994, as the panel had found no across the world stays largely ignored, globally.
evidence that its actions were “taken in time Distorted trade flows not only keep every- www.livemint.com
New Delhi, Mumbai, Bangalore, Kolkata, Chennai, Ahmedabad, Hyderabad, Chandigarh*, Pune* Thursday, December 13, 2012 Vol.6 No.297 `3.00 in DelhiNCR/`4.00 outside DelhiNCR 24 PAGES
+ 4 MARKETS PAGES
of war or other emergency in international one’s quality of life lower than it would other- INTERNATIONAL: US Federal Reserve
ramps up stimulus >24
CORPORATE: BT exits Tech Mahindra,
sells 9.1% stake for `1,011.4 crore >4
relations” to qualify for exemption under the wise be, the myth that trade is a zero-sum game EXCLUSIVE PARTNER
ECONOMY: Govt raises $1.1 billion
from NMDC share sale >8
NATION: Reserve Bank proposes
tighter norms for NBFCs >24
pact’s Article 21(b)(iii). In response to what’s traps countries in lose-lose contests of raising SENSEX 19,355.26 æ 31.88
8.2% INCREASE
NIFTY 5,888.00 æ 10.80 DOLLAR `54.32 Æ `0.06
Pandit Ravi Shankar

EURO `70.80 Æ `0.33
Fresh hope
GOLD `31,115 Æ `55
QUICK EDIT
OIL $109.82 Æ $2.07
IIP up, but

19202012
for banking Pricing
clearly a valid ruling, US officials made vague import hurdles. Many politicians take their
Bill after BJP pressure
recovery
signals support
B Y R EMYA N AIR
remya.n@livemint.com
·························
I nflation, as measured
by the Consumer Price
Index (CPI), was close to
double digits at 9.9% in
November, faster than The laws of political
calls for WTO reforms, even as trade repre- policy cues from what the US does, and if they
NEW DELHI
October’s 9.75%, thus
T he prospect of the banking showing that sequentially
still distant
amendment Bill gaining inflation has not lost
legislative approval brightened momentum.
economy cannot be bent

after key leaders of the princi- One can, of course,
pal opposition Bharatiya Jana- draw some comfort from
ta Party (BJP) signalled their the fact that much of this
support. is due to items such as
Once passed, the law will food and clothing, and
sentative Adam Hodge reportedly stated that find that lobbies can be pandered to and poll
Industrial output rises Nomura Financial Advisory and pave the way for the Reserve that core CPI, which
Securities (India) Pvt. Ltd. Bank of India (RBI) to issue excludes food and fuel, is
sharply in October, but More worrying, retail inflation new bank licences and give less heated. Some may
experts peg it on the accelerated to 9.9% in November shareholders greater say in even read it as a signal for
base effect, warn of compared with 9.75% in Octo- both private and state-owned the central bank to
ber, on account of rising food banks. reconsider its monetary
contraction in November
to suit the differences of

prices of items such as oils, puls- The Bill, which came up for stance. Maybe, maybe
es, sugar and vegetables. discussion on Monday, had not. For, the other way to
B Y R EMYA N AIR Given the sticky trend in infla- faced stiff opposition from the look at the issue is from
“the US will not cede decision-making over its support obtained by upping import duties,
remya.n@livemint.com tion, economists do not expect BJP and the Trinamool Con- the perspective of the
························· the central bank to cut interest gress that objected to the in- recent liquidity easing by
NEW DELHI rates in the mid-quarter review clusion of a clause that gives the central bank, with the
I ndia’s factory output

bounced back sharply in Oc-
tober after contracting in the
previous month, with the manu-
facturing sector showing signs of
of the monetary policy sched-
uled for 18 December. A key de-
mand of both industry and the
government has been that the
Reserve Bank of India (RBI) cut
banks the option of trading in
commodity futures.
The clause was not part of
the original Bill and was in-
cluded after the standing com-
cut in the cash reserve
ratio.
The danger now is of
the heightening of
inflationary expectations,
latitude and longitude.

revival, but experts said signs of policy rates and thereby revive mittee on finance gave its rec- especially as high food
essential security to WTO panels.” others would be tempted. Stopping such

recovery are exaggerated since the investment cycle in the slug- ommendations. The opposi- prices have a tendency to
there was a contraction of out- gish economy. tion, led by the chairman of stoke them further. In
put in October 2011. “Fresh investments are un- the standing committee on fi- such conditions, the
Indeed, with retail inflation likely to pick up in coming Global icon: Guitarist George Harrison (left) with Indian sitar maestro nance, Yashwant Sinha of the danger of generalized
having accelerated close to dou- months,” Varma said. “The in- Ravi Shankar in this 1975 photo. Ravi Shankar died at the Scripps BJP, a former finance minister inflation due to the
ble digits and trade data released dustrial cycle will remain weak Memorial Hospital La Jolla in San Diego, US, of a cardiacrelated himself, demanded that the “spilling over” of food
on Tuesday showing a contrac- in the current financial year. Any illness on Tuesday. He was 92. price inflation is very real.
tion in exports for the seventh pickup can be expected only Photo: Getty Images See Pages 6, 7 TURN TO PAGE 3®
What the Trump administration began in mutually harmful moves was why GATT was
straight month, an immediate when global growth sees some
recovery of the economy doesn’t recovery.”
seem likely. In its half-year monetary poli-
Data released on Wednesday
showed that India’s Index of In-
cy review, RBI had indicated that
it may look at further easing pol- GMR, not
dustrial Production (IIP) grew at
a faster-than-expected 8.2% in
October, as against a contraction
icy rates only in the fourth quar-
ter. The central bank’s premise
was based on inflation likely ris-
WalMart, is
of 0.7% in September. In October ing further before easing in the
our real worry
the name of “America first” has not only con- signed and the WTO set up. Lessons from last
last year, IIP contracted by 5%. fourth quarter.
“The pickup is entirely be- Economists say RBI will take a
cause of the base effect. Last final call after reviewing inflation
year, Diwali was in October, based on the Wholesale Price In- COMMENTARY
which led to a loss of output in
that month. This year, IIP
growth may contract in Novem-
ber because of this,” said Sonal
Varma, India economist at
dex (WPI) due for release on 14
December. WPI inflation was
sticky at 7.45% in October.
“I do not expect the central
bank to cut the cash reserve ratio
B Y S UNDEEP K HANNA
sundeep.k@livemint.com
·························
NEW DELHI
I
M. M. Tru Mbu l l
tinued brazenly under President Joe Biden, century’s hostilities, with mercantilist policies
(CRR) or the repo rate next nstead of getting our collec-
NOTE TO READERS week,” Varma said. CRR defines
the balance banks need to keep
tive knickers in a twist over
the legality of Wal-Mart’s
The Media Marketing Initiative with RBI and a cut in it will mean lobbying efforts, we might be
on Page 15 is the equivalent of a banks have more money to lend. better off ensuring wannabe
paidfor advertisement, and no The repo rate is the rate at which Indian multinationals have a
Mint journalists were involved in RBI lends money to banks. A clear permissible practices list.
creating it. Readers would do well cut in this will reduce borrowing In recent times, in countries
to treat it as an advertisement. costs in the banking system. as diverse as the Maldives, Bo-
whose “America is back” evidently did not having led up to two horrid World Wars, also
Finance minister P. livia, Bulgaria, Zambia and
Chidambaram conceded that Zimbabwe, Indian business
the base effect was exaggerating groups such as GMR, Jindal,
industrial growth, but preferred Mittal and Essar have run afoul
to remain positive about an eco- of local politics or rules. As we
nomic revival. float our boats, hoping India’s
“Let’s see what the next four new reputation as a global
months brings us. I hope that in- player pushes us into the big
vestments are taking place, ca- league, the country needs the
include reclaiming its role as a champion of had a role to play. Today, though, we lack a
pacities are being created, and equivalent of the US Foreign
more production and consump- Corrupt Practices Act (FCPA),
tion of consumer durable and or even the UK’s Foreign Brib-
non-durables is happening,” he ery Act, 2011.
said. Currently, India just has the
In the first seven months of inadequate Prevention of Cor-
the fiscal year (April-October), ruption Act, which hasn’t been
IIP growth averaged 1.2%. able to rein in corrupt practic-
If the index remains un- es at home, leave alone those
free trade, it has enlarged its agenda to protect loud and clear voice on what’s good for all of us.
changed, then growth in No- in distant lands.
vember IIP could be around 2%, FCPA has two parts. The first
said Samiran Chakraborty, head prohibits US citizens and US
Mint is also available for R7 with
Hindustan Times in Delhi-NCR only
TURN TO PAGE 2® TURN TO PAGE 2®
various high-tech industries, even deny stuff to In theory as much as practice. And that’s a pity.
GUEST VIEW
We will need to find our own sources of climate finance

Not only must India continue pushing rich India already the fifth largest global economy We could aim for a banking framework Such a climate banking framework can ful-
ASHIESH KAPOOR nations to contribute additional monies for and moving towards shaping world agendas, wherein Indian banks are nudged to lock in fil a wide set of goal, while fintech startups
past excesses, but also mobilize more private we must temper our expectations of such long-tenure, low-cost private climate capital and digitization can play a big supporting role
capital finance on its own by co-creating an funds on concessional terms. Actual figures from alternative sources, like overseas inves- in connecting small clients with banks. Regu-
auxiliary funding mechanism. in India’s kitty will thus continue to be insuf- tor institutions, global pledge organizations, lators and financiers need to evaluate various
The global thematic split reflects that of ficient for our needs. Also, as with our sover- private philanthropy, CSR budgets, etc, and use-case scenarios before implementation.
T
he agreement to create a loss and dam- the $83 billion, $49 billion was invested in cli- eign green bonds, these funds will largely be are incentivized to on-lend cheaper loans to For instance, block-level wholesalers/trans-
age fund salvaged CoP-27 somewhat. mate mitigation activities focused mainly on earmarked for select public diverse businesses. Arming port operators or fertilizer and tractor sellers
While funding contours and future cleaner energy and transport, while about sector projects or renewa- banks with risk weight and can be incentivized to arrange machinery for
contributors remain unclear, least developed $28 billion was spent globally on climate ble energy mitigation and We can’t rely on priority sector incentives mulching crop stubble into farm fields or
and vulnerable smaller island nations in need adaptation, mainly for agriculture, water sup- low-carbon transport sys- can help extend conces- recycling waste for biofuels, with the objec-
of assistance to tackle climate disasters are its ply, forestry restoration, coastal fishing and tems planned under India’s Western public sional low-coupon, shorter tive of lowering husk-fire emissions and air
likely beneficiaries. Such funding will largely sanitation. This $49 billion in 2020 mitiga- long-term Low Emissions tenor sustainability financ- pollution across the Indo-Gangetic plains.
trickle-in via concessional loans ultimately, tion investment globally pales in comparison Development Strategy
transfers and ing to clients. This may also Given average credit profiles and smaller loan
is a corporate banker and

like before.
A glance at the OECD’s climate finance
with India’s $250 billion renewables installa-
tion need by 2030. The UN secretary general
(LEDS) for climate action.
But what about adaptation
must create our deepen funding liquidity
for lower-rung entities and
sizes, green bonds won’t be feasible here,
while DFI funds and direct fiscal transfers by
transition finance enthusiast trends report 2022 indicates that of the tar-
geted $100 billion aggregate climate funding,
worryingly underscored that the adaption
finance needs of developing countries will
and mitigation financing
for compact businesses,
own framework improve global forex
inflows at a time of weak
the government may only work partially. Low
coupon sustainability-linked bank loans or
about $83 billion was mobilized from devel- gallop to $340 billion annually by then. SMEs and local communi- of finance for exports. Next, delineated overdraft facilities at the entity level would be
oped nations via global agencies through Clearly, we have a widening gap to bridge. ties? Surely, they need to be projects of larger compa- a more practical adaptation solution for many
2020. Of this, bilateral and multilateral pub- Experience suggests that depending solely taken along too. domestic needs nies or well-rated special across the rural and urban divide.
lic climate finance from the developed West on timely Western public funds, per current While fiscal incentives purpose vehicles that meet As India lays out a G20 agenda, the govern-
stood at $68 billion, comprising concessional or post-2025 quantified agreements, will be like production-linked pre-set mitigation specifi- ment should set the direction for augmenting
and non-concessional loans (71%), grants unwise in times of geo-strategic competition incentive (PLI) schemes may work in drawing cations should continue to be encouraged to our private climate finance framework, too.
(26%) and equity (2%), while private climate and recessionary fears. Monies from rich manufacturing mitigation investments for raise funds through domestic financial insti- Inclusive growth with relentless and resilient
finance and export credit extended via agen- countries are unpredictable, yet the alloca- utility-scale solar or wind, financing for most tutions (DFIs), project financiers and private development (“Sahit Vikas, Satat Viksan”)
cies comprised just $15 billion. These total tion thereof by global agencies is predictably businesses across India’s credit curve and sovereign green bonds. Lastly, impact should be our mantra, as the country marches
2020 figures highlight the challenges in done among least developed and developing requires a different approach that rewards funds, blended finance instruments and ven- forward in its quest towards net-zero emis-
mobilizing the colossal climate investments nations across Asia (42% of the 2020 total), entities seeking to build resilience through a ture capitalists betting on new climate tech- sions powered by a people’s movement as
required by the developing world each year. Africa (26%) and Latin America (17%). With sustainability focus. So, what can be done? nologies need to be nurtured for the purpose. much as low-cost climate finance.
LIVEMINT.COM VIEWS TuesDay, 13 December 2022
New DelhI 13
THEIR VIEW M I N T C U R AT O R
The Theranos debacle holds key Indonesia’s strict penal code is

an omen of illiberal democracy
lessons for startups and India Inc Joko Widodo’s politics of development has taken on a hardline hue
An in-depth grasp of biases, heuristics and behavioural corporate governance overall could help minimize such infractions
AP
CLARA FERREIRA MARQUES

is a Bloomberg Opinion columnist who
covers Asian economies
TULSI JAYAKUMAR
is professor, economics, and executive director,
Centre for Family Business & Entrepreneurship
at Bhavan’s SPJIMR
T
o anyone who’s been watching Indo-
nesia in recent years, the passing of a
stiff new criminal code, one that bans
T
he US-based blood-testing startup extramarital sex, makes it easier to punish Widodo had a cleric as his running mate in
Theranos, a fallen unicorn, and the LGBTQ people and harder to criticize the 2019 for the president’s post PTI
recent sentencing of its former Chief government, wasn’t a shock. Less tolerant
Operating Officer Ramesh ‘Sunny’ forms of Islam have been seeping into the former Jakarta governor Basuki Tjahaja
Balwani and its founder-CEO Eliza- world’s most populous Muslim nation. Purnama, known as Ahok, a Christian. He
beth Holmes, hold deep lessons for Charges of ‘blasphemy’ have toppled politi- was jailed for blasphemy in 2017. His Mus-
both the startup ecosystem and corporate India. cal hopefuls and Islamic bylaws are com- lim opponent and eventual successor, Anies
Holmes, once hailed as the “next Steve Jobs”, mon. To secure re-election in 2019, Presi- Baswedan, will run for president in 2024.
had dropped out of Stanford to start Theranos in dent Joko Widodo had senior cleric Ma’ruf It’s proven pragmatic to ceded occasion-
2003 when she was just 19. Her revolutionary dis- Amin as his running mate. That doesn’t ally to conservative forces, especially for a
ease-diagnosing ‘Edison Test’ promised to detect make the bill any less troubling. Indonesia president like Jokowi, focused on economic
cancer and diabetes without the use of needles, wants to court foreign investment, improve and development goals. The Indonesian
and with just a tiny amount of the patient’s blood its workforce and education system, and leader, as anthropologist Martin van Bruin-
at a fraction of the usual cost and time taken by just bolstered its standing with its G20 pres- essen at Utrecht University pointed out to
traditional technology. By 2010, having received idency. Jakarta can’t afford to backslide. It me, has successfully repressed the activism
several rounds of funding, Theranos had achieved also has presidential polls in 2024, so dis- that brought down Ahok by banning some
the status of a unicorn, valued above $1 billion. course isn’t likely to get liberal. movements and co-opting others. “The cur-
How much of its unicorn status was the result of Granted, a revamp of Indonesia’s old rent legislation seems to be at variance with
investor gullibility and what role did a marquee code, still a colonial relic, has been in the government policy,” he said, “but is an
board play in the making of this unicorn? works for decades. This Muslim-majority expression of political realities.” There are
Most investors in Theranos were probably nation is more conservative than is often bargains to be made in coalition rule.
driven by loss aversion and a fear of missing out on assumed; a 2019 Pew survey found some There’s also the education question. Like
one of the ‘hot rising stars’ among Silicon Valley 80% of Indonesians think homosexuality in Malaysia, Islamists in Indonesia have
startups, especially in the context of the interest should not be accepted by society. For been able to take advantage of creaky public
shown by and investment pouring in from high- many Indonesians, the code may well systems by setting up religious boarding
profile investors. The latter included media investors to throw caution to the wind, due to false controls and doctored research at Theranos, he reflect their beliefs, if not necessarily what schools and other institutions that offer an
moghul Rupert Murdoch, who had led a Series A and misleading assessments of their own skills, faced resistance from within his own family. His they would campaign for. It’s also true that affordable alternative to the private sector,
round of funding as early as 2005, besides others intellect or talent. What else can explain the fact grandfather chose to ally himself with Holmes and the bill could have been worse. It did, for but can encourage a drift to traditionalism
such as Oracle founder Larry Ellison and the US that the company not only became a unicorn, Balwani, leading to a family rift. Similarly, one of example, limit the categories of people who and do not necessarily churn out workers of
pharmacy and retail chain Walgreens. but had reached a peak valuation of $10 billion by the other investors, Tim Draper, continued to be can file police complaints over morality the future. Neither country is doing enough
Such investments from reputedly hard-nosed 2015, despite Holmes’ clear inability to explain an outspoken defender of Theranos until 2018. crimes. Hardline groups wanted more. And, to solve that education deficit.
businessmen and executives can be explained by Theranos’ technology? In fact, even when she Individual investors and boards comprising yes, legislation is one thing and practice is Perhaps the most concerning is the way
drawing on the concept of a ‘representativeness explained this supposed innovation as “chemistry well-recognized and reputed individuals, such as quite another. democratic vulnerabilities have aided the
heuristic’, a mental shortcut which involves esti- is performed so that a chemical reaction occurs at Theranos, may fail to prevent such frauds on Unfortunately, the risks to minorities and conservative turn. That applies as much to
mating the likelihood of an event by comparing it and generates a signal from the chemical interac- account of a range of biases, heuristics and social political opponents offers no comfort at all. the content of the code, with its provisions
to an existing prototype that already exists in the tion with the sample, which is translated into a pressures affecting their judgement. The cognitive First, the LGBTQ community is already making it easier to muzzle critics, as to the
mind. The prototype then is considered the most result, which is then reviewed by certified labora- bias of hyperbolic discounting, for example, leads dealing with one of the harshest environ- way it has been passed. In 2019, an earlier
relevant or representative of a particular event or tory personnel”, it failed to raise enough suspicion to the threat of reputational loss being seen as a ments in Asia. The new code stipulates effort to revise the criminal code met with
an object. Holmes’ status as a college dropout from among investors. mere likelihood in the distance, in contrast with reports have to be made by a parent, spouse massive demonstrations, there was wide-
the Ivy League Stanford, after having spent two The Theranos board comprised several well- the real possibilities of instant gratification or or child, so expats could get around it, but it spread anger over the reluctance to make
semesters doing chemical engineering, probably known names, such as former US secretaries of rewards through re-election to the board, higher opens the door to morality policing on a the draft public, and concerns over changes
led investors to overestimate the probability state George Shultz and Henry Kissinger, former valuation gains, contract renewals, etc. In the wider scale. Almost anyone is at risk of over- seen as a winding back of democracy.
of Holmes-backed Theranos becoming the ‘next US defense secretary William Perry, and a former wider field of healthcare, the famous Tylenol case zealous application, given how open to This year, public consultation and discus-
big unicorn’. chief executive officer of Wells Fargo & Co, Rich- demonstrates how the human preference for interpretation certain clauses are when it sion has again been curtailed, but the gov-
Such a representativeness heuristic may have ard Kovacevich, besides former US Navy admirals immediate gratification, along with an insufficient comes to anything that does not align with ernment has not seen itself hampered by a
been responsible for a ‘base rate bias’, wherein and other senior defence personnel. Holmes’ need regard for potential negative future consequences, conservative views, including, say, black similar surge of anger, though the bill will
investors ignored the fact that the Theranos tech- to put together such a board is not surprising, can lead to disastrous consequences. magic, in a country where such beliefs have fully come into effect three years after it is
nology had never been submitted for peer review given that the company planned to sell its blood- Board members, investors, auditors and other long co-existed with Islam. It will hurt signed, leaving ample time for protest and
in medical journals. ‘Gullible’ investors seem to testing devices to the military. stakeholders associated with the governance of women by making sexual education and court challenges.
have paid scant attention to a statistical base rate, However, why would such illustrious people fail startups, and indeed of large companies as well, information on contraception harder. And In part, says Alexander Arifianto at the S.
namely the success rate of the new technique, in their vigilance, refuse to speak up when con- must understand the limitations of the traditional then there are provisions that can restrict Rajaratnam School of International Studies
which for some medicines can be as low as 1%. fronted with damning evidence of failure, and approach to corporate governance, based merely freedom of expression. in Singapore, it’s about fatigue and the fact
Instead, they displayed the typical human tend- continue to back a nefarious company with ques- on resolving the so-called principal-agent prob- The question, then, is where we go from people are not yet feeling oppressed enough
ency of looking for patterns and at causal base tionable technology? One of its whistleblowers, lem. Corporate India will need to invest on under- here? It may help to consider the three fac- by the new code. The problem, as he argues,
rates. In such a world, successful startups would be Tyler Shultz, was a Theranos board member, standing behavioural corporate governance, since tors behind the current conservative turn. is that laws that interfere with personal
‘caused’ by bright young restless minds dropping George Shultz’s grandson. Tyler had been con- infractions of the Theranos sort, far from being an First, as in Malaysia, politicians in Indo- freedoms are hard to predict, especially
out of colleges to create unicorns, as in this case. vinced of wrongdoings in the company within a exception, may turn out to be the rule even as we nesia have found that Islamic identity poli- when they rely on private actors to enforce
Added to this heuristic may be an overconfi- few months of starting work at Theranos. How- toast ‘Startup India’. tics and piety pays. Islamist organizations them. You’re not on the wrong side of moral
dence bias, which caused fund managers and ever, when he raised questions on shoddy quality These are the author’s personal views can mobilize voters, as they did against laws—till you are. ©BLOOMBERG
MY VIEW | IT MATTERS
Non-fungible tokens now look headed the crypto way

So, what exactly are NFTs? While most can make any number of exact facsimiles by account. However, his tweet is now ‘owned’ parent company Yuga Labs, several celeb-
SIDDHARTH PAI media reports on them are about the sale of yourself. Court cases and government by somebody. The NFT simply certifies with rity promoters (named as “Promoter
artworks, NFTs can be anything digital. Jack actions over Napster’s software that allowed computer code that the tweet is owned by a Defendants”), and the well-known music
Dorsey’s tweet, for instance, is not art. ‘Non- peer-to-peer sharing of song files forced that certain entity/individual. Apart from the industry manager Guy Oseary, who is being
fungible’ simply means that the item cannot company to shut down in 2001, after a bragging rights it grants, the ability to sell accused of setting up low-key payments
be replaced by anything else; it is unique. In clumsy system of ‘digital rights manage- ownership of the original presumably goes through a company called MoonPay to pay
N
on-fungible tokens (NFT’s) have been contrast, money is fungible; a ₹500 note can ment’ under the US’s Digital Millennium up as its popularity increases across the celebrities for their endorsements.
all the rage. As with most things tech- be exchanged for another ₹500 note. And Copyright Act was internet. For a speculator, Referencing a November 2021 ‘Tonight
oriented, many people bandy about one Bitcoin is the same as another. Also, enforced. Current law is NFTs will hopefully work Show’ interview with Matt ‘Beeple’ Winkel-
new terms like ‘NFT’ without understanding money and cryptocurrency are not inex- still clumsy when it comes NFTs differ from like ownership of any rare mann (who allegedly is in business with
how the technology works or what it is haustible. to copying and sharing creative work, such as a Oseary and is also a named defendant), the
designed to do. The courage to say “I don’t A painting or song or another piece of digital content. crypto tokens Raja Ravi Varma painting. lawsuit accuses Fallon of being paid to pro-
know” is the preserve of very few. We have work is not fungible. You cannot exchange Enter the NFT. By using But accusations of dodgy mote the brand through MoonPay. It states
been bombarded recently with news of Elon any of the Raja Ravi Varma paintings that blockchain technology,
but have also dealings find their way any- that “Fallon did not disclose that he had a
is co-founder of Siana Capital

Musk’s purchase of Twitter and the ensuing
bloodbath there; over half its employees
hang in Vadodara with those in Mysuru. Cas-
sidy and Sugaree by The Grateful Dead are
something most readers
must be familiar with by
been prone to where there is commerce.
The Hollywood Reporter, for
financial interest in MoonPay or that he was
likewise financially interested, directly or
were fired or have resigned. Its verification
system is now ‘for sale’ and therefore means
not interchangeable songs. They are non-
fungible. Also, their provenance is known.
now, NFTs create a digital
non-fungible ‘token’ for
overvaluation example, has reported that
Jimmy Fallon and several
indirectly, in the increased sale and popular-
ity of Yuga securities.”
much less than it used to. Some users have We know that Ravi Varma was commis- each original piece of digi- in a frenzy that other celebrities such as Yuga Labs has responded, calling the
reported problems with security features. sioned by Sir T. Madhavrao, Regent of Bar- tal art or creative work Gwyneth Paltrow, Justin claims “opportunistic and parasitic. We
But this column is about NFTs. Before oda, for many assignments there, all of (such as a Bored Ape car- is fizzling out Bieber and Madonna who strongly believe that they are without merit
Twitter’s takeover, Jack Dorsey, its founder which are recorded, thereby establishing toon), which is now forever have spent a large amount and look forward to proving as much.”
and ex-CEO, sold his first tweet (also the first the origin of these works. the only original there is. of time convincing people That said, the global NFT market seems
tweet ever) as an NFT for more than $2.9 mil- However, the advent of the digital age All the others are only copies of that original. that Beeple’s ugly ape pictures were both headed in the same as that for crypto. Trad-
lion. Meanwhile, creators of the Bored Ape means that any number of copies of music or For now, most of these NFTs are on the fashionable and lucrative are now being ing of Bored Ape NFTs has reportedly
Yacht Club (BAYC) created an NFT collection songs can be made in MP3 or other formats, Ethereum blockchain. sued. The suit is being put forward by Adonis dropped by 93% since its launch. And BAYC
of cartoon images of apes depicted in various and any number of high-quality digital art or NFTs capitalize on an insight into human Real and Adam Titcher, two Ape buyers who is trading at 66.45 ETH, down from 153.70
states of ennui. A popular digital artist, Mike photographs can be copied with no loss of nature: the need to ‘own’ things. Jack Dor- lost money on their purchases, and who are ETH on 1 May, according to CoinGecko.
Winkelmann (known online as Beeple) sold fidelity from the original. Therefore, they sey’s tweet has been freely available on the hoping to develop a class-action suit against My take? If you’ve put money in NFTs,
a single NFT for almost $70 million. are inexhaustible, since, unlike money, you internet, even to those without a Twitter all involved. Their targets include BAYC’s swallow your losses, and exit.
New Delhi BUSINESS OF LIFE WELLNESS LIVEMINT.COM
ISTOCKPHOTO
Are you being duped into

eating more junk food? ISTOCKPHOTO
Food manufacturers
have perfected ways to
formulate flavour and
textures that leave you
reaching out for junk
food again and again.
Jen Thomas
More reasons for
you to switch to a
F
ood, for many of us, triggers an
emotional response. It beckons us
every time we walk past the fridge,
calling us towards it. It often
becomes a ghostly ghoul haunt-
ingly calling us through the wind, begging us to
plant-based diet
eat it. The siren call can be too loud to ignore,
depending on our mood. Think about switching to a plant-based
Can you relate to one of these scenarios? diet in 2023 for optimum health
When you wake up in the morning, does the
smell of brewing coffee brighten your senses?
Or, when you’ve been at work or chasing the Shrenik Avlani
children, do you find yourself daydreaming feedback@livemint.com
about that first sip of whisky or wine to “take the
W
edge off?” hat we eat and drink impacts our health and fitness,
Facts are facts, and our favourite food can lift our longevity, resistance to disease and quality of life
our moods, soothe our souls, help us celebrate, too. What we consume also affects how our bodies
or drown our sorrows. Unfortunately, food respond to the fitness regimen we follow. Driven by the promise
companies have figured this out, and instead of of better health, improved results of their workout regime and
ignoring it, they use our emotions against us for lower risk of disease, millions across the world have changed
profit. their eating and drinking habits. One of the biggest game-chang-
Are you stressed out? It would help if you had ers is going on a plant-based lifestyle.
a break, says KitKat.If you’re feeling glum, Coca- Ask Mumbai-based Japesh Mehta, and Kshitij Sharma and his
Cola says, “open a coke, open happiness.” How- wife Simta Sharma in Bengaluru. All of them are among those
ever, food companies have gone one step fur- who have adopted “healthier” food habits by switching to a strict
ther than tapping into our emotions. They are plant-based diet. Such a diet leaves no room for dairy or any milk
perfectly formulating their foods to sate our products (for context, the Indian vegetarian diet includes all milk
every evolutionary taste preference. MacDo- and milk products). Mehta, 44, a banker and environment activ-
nald’s doesn’t even hide it. A billboard for the ist, turned to a vegan diet to lose
Angus Third Pounder Deluxe said, “Crafted for A recent study weight. The 36-year-old Bengaluru-
your Craving.” And that’s what they did. your hand in a beehive. If you wanted salt, you ufacturers used this insight to fine-tune the bliss choosing healthy foods. But then they are found a link based cybersecurity consultant
Food manufacturers have perfected ways to either had to be near a saltwater body or go on point of almost every item on supermarket accosted with unhealthy foods on the ends of Sharma and his wife, a software profes-
formulate flavour and textures to respond ide- the hunt for fresh meat. If you wanted some- shelves. You can watch his mini-interview on aisles or at the checkout, which are in bright, between a sional, switched to a plant-based diet
ally to your food cravings, leaving you wanting thing fatty, you had your work cut out and had Youtube, titled, The Bliss Point | Retro Report alluring packages. They must pass these areas to plant-based diet to see better results from their exercise
more. The combination of flavours, textures, to join the hunt. Voices, where he explains how it’s done. get the remaining healthy food, such as dairy or and a lower risk routine.
smells and other stimuli involved when buying These foods were higher in calories, which bread, which is often towards the back of the of bowel cancer These changes in diet for better
and eating their foods all point toward consum- was a massive reward for our efforts. Not only THE BIG 5 store. Our senses are engaged by every passing health are vindicated by a recent study
ing more. that, but these foods are also connected to the The Big 5 is another tactic food manufacturers food, making them irresistible to ignore. which found a direct relationship
When offered a chip, have you ever said, “I’ll reward circuitry in our brains, ensuring that we can use to create the perfect, moreish food. Let’s tally the score: emotive marketing mes- between a plant-based diet and a lower risk of bowel cancer
just have one?” And yet you notice that you edge get a dopamine “hit,” or some pleasure, out of These five traits of the ideal food are: sages, brightly coloured packaging, stimuli among men. The research, spanning over 19 years, involved
closer to the chip bowl, stealing a few more each eating them. As it 1.Calorie dense (fatty, stacking, bliss points, and the big 5. So, how do 79,952 US-based multi-ethnic men. The researchers found that
time. Or, have you sat down at a movie theatre, turns out, calories sugary, salty) we stand a chance against becoming addicted to those who ate the largest amounts of healthy plant-based foods
looking at your gigantic bag of popcorn, and alone weren’t suffi- These flavours are programmed 2.Intense flavour our favourite processed foods? had a 22% lower risk of bowel cancer, compared to those who ate
said,”there is no way I’ll finish that.” Funnily cient motivation to in our brains to be satiating and 3.Immediately deli- When Moskowitz was asked if the bliss point the least. The study also investigated the associations between
enough, by the end of the opening credits, your get up and look for
hand scratches at the kernels littering the bot- food; we needed more delicious and alter our moods, cious bite
from the first makes food more addictive, he denied it. “No, it
just makes it more delicious,” he said. However,
predefined indices of plant-based diets, and risk of colorectal
cancer and evaluated whether the association varies by sex, race
tom of the bucket. The same goes for eating ice incentive to eat. making us feel much happier 4.Melts in the mouth I don’t see it this way. First, adding sugar, fat, or and ethnicity. They found no such link between plant-based diet
cream when we feel sad; it’s only a few tears These flavours are 5.Easy to eat salt to products creates that rewarding flavour, and cancer among women, of whom there were 93,475 in the
away from hitting the bottom of the bucket. programmed in our Using this tactic making it easier to overeat and impact some- study. Colorectal cancer is the third most common malignancy
Food marketers have this flavour formula brains to be satiating and delicious and alter our makes it easier to eat more food with less satiety. one’s health and waistline. Secondly, we and the fourth most common cause of cancer death worldwide.
down to a literal science. They employ tactics moods , making us feel happier. In our modern The easier it is to eat, the quicker it disappears become accustomed to these flavours, making Cancers can be preventable with lifestyle improvement in
such as “stimuli stacking,” “bliss points,” and the times, we don’t even have to leave our couches from your tongue, and the easier it is to put swapping to the bitter, grainy, nutty, or less which dietary factors are very important, says Deepti Khatuja,
“Big 5” characteristics to make food more entic- – these highly palatable, intense stimuli-stacked another piece in your mouth. It keeps the eating sweet flavours of healthier foods more difficult. head clinical nutritionist at Fortis Memorial research Institute in
ing. foods can land at our doorstep or be stored in cycle continuing. Furthermore, the more of these stimuli we Gurugram. “Various studies have shown that vegetarians have
Want to know more? Read on our house. We have the reward without effort. eat, the more frequently we are rewarded in our a reduced risk of not just degenerative diseases like diabetes and
SUPERMARKET TRICKS brains for eating them. The more we experience cardiovascular diseases, but have shown to have reduced risk for
STIMULI STACKING BLISS POINT In combination with the perfect flavours, it’s that reward, the more we tightly connect food certain cancers as well. This is because plant foods especially
Processed and junk food only became popular The bliss point is another way food scientists now the supermarket’s job to guide you to that with the subsequent reward, making it difficult fruits and vegetables along with whole grains and legumes, espe-
in the 20th century. It’s such a recent phenome- can craft the perfected response to your craving. food on the supermarket shelf. According to to control our cravings. It becomes a vicious, cially soy, nuts and seeds have fibres which along with maintain-
non that our brains have evolved slower than The man responsible for this term is Howard Nutrition Insight’s article Health on the Shelf: self-serving loop of consumption. ing weight also lower the risk of cancers. Along with soluble fibre,
our technology. Our brains are still looking for Moskowitz. He discovered that enjoyment of a Supermarket layout drives junk food choices by Now that you know how food companies and antioxidants and phytochemicals such as carotenoids, indoles,
food that provides the most calories for survival, particular food would increase as the sweetness 36%, supermarkets are strategically laid out to a supermarket can dupe you into eating more and isoflavones are also present in plant foods and these have
which tend to be sweet, salty, and fatty foods, profile increased. However, the enjoyment encourage impulse purchases. As a result, food highly palatable foods, how will that change been found to be protective against specific cancers,” explains
which were hard to come by in the ancient would dissipate if it became too sweet. Mosko- marketers will pay top dollar for the best strate- your purchasing habits? Khatuja.
world. If you wanted something sweet, you had witz found that each food had its desired sweet- gically placed shelves. Nutrition Insight also tells
to wait until the appropriate season for fruit to ness level at its peak appeal. He took this infor- us that healthy food is placed at the entrances, Jen Thomas is a Chennai-based weight-loss Shrenik Avlani is a writer and editor. He is the co-author of The
flourish or risk anaphylactic shock by sticking mation to food marketers. As a result, food man- so customers first get a feel-good boost for coach Shivfit Way, a book on functional fitness.
What exactly is gaslighting, and how do you deal with it?

Here is how to avoid this his wife that she is insane. As the play IDENTIFY THE PROBLEM a witness to events. Seeking long-term
depicts, gaslighting, a form of emotional The first step is to identify the problem. professional help through therapy and
form of emotional abuse, abuse, involves the abuser getting the vic- Once you understand something, you can support groups is also highly recom-
where the abuser makes tim to question their sense of perceptions,
reality and memory.
start to address it specifically. Sometimes
writing down specific points from a con-
mended.
the victim question their It often starts with small, relatively versation that you can look back on later KEEP EVIDENCE
harmless offences. Over time, however, it can help. Click pictures or have voice memos:
own reality and memory can result in immense self-doubt, anxiety These can help you “fact check” memory.
and disorientation. Take the case of this ALLOW YOURSELF TO FEEL
Divya Naik 32-year-old banker. He confesses to feel- The next step is to allow yourself to feel CREATE A SAFETY NET
feedback@livemint.com ing “confused” all the time about himself what you feel. Part of the problem with Find safe ways to document events, create
and his capabilities as a result of his gaslighting is it results in the victim con- a safety plan, or leave a relationship, if you
A
27-year-old financial analyst con- ex-wife constantly telling him that he is stantly questioning his or her own have to
fesses that she was made to believe “all over the place, incapable and not good thoughts, perceptions or values. Acknowl-
that she is “not fit to be a manager” enough.” Over time, it made him com- edge your feelings and take whatever step PUT YOURSELF FIRST
at her workplace, despite her putting a lot pletely unfocused and unable to manage you need to take to feel better. If the person who is gaslighting you is
of effort towards it. “I had been a manager his daily life. He started doubting his own someone you care about, look up to or
at my previous workplace, but in my cur- judgment and would confer with his wife SET BOUNDARIES have a relationship with makes, it all the
rent one, I was told that I wasn’t good for all important decisions, becoming This can include standing up for yourself more difficult to let go of.
enough and I lacked leadership qualities.” completely dependent on her. “Whenever to ensure that the abuse does not continue However, it’s not worth it if it under-
She believed that there was actually some- I confronted her about being manipula- in any manner, both physical and mental. mines your reality. And to again rebuild
thing wrong with her for a long time. tive, she would cry and deny it,” he says. Abusive people manipulate a person’s your sense of self that you have lost, you
Through therapy, she realised that she Experts say that gaslighting is a form of Ingrid Bergman and Charles Boyer in Gaslight ( 1944), a movie based on the play. IMDB sense of sympathy, often asking them to need to completely cut off that person.
was more than capable and had been gaslit abuse which can emotionally and physio- prioritise the abuser’s feelings.
by her colleagues. logically affect the victim, and in the long also lead to anxiety, depression, disorienta- including obesity, speech disorders, and It is essential to put your preferences (With inputs from Dr Kersi Chavda, Con-
Gaslighting is touted to be a word for term, it can lead the victim to stop think- tion, lowered self-esteem, post-traumatic sleep problems and feelings first and always put your foot sultant Psychiatry, P.D. Hinduja Hospital
our time, with the Merriam-Webster dic- ing for themselves and rely only on the stress disorder, suicidal thoughts u Often, a victim of gaslighting may start down when your emotions are being com- & MRC, Mahim; Dr Parul Tank, Consult-
tionary naming it the word of the year: abuser. It happens when the abuser tries u It can lead to a loss of sense of self. It also believing they are irrational or “crazy”. promised ant Psychiatrist, Fortis Hospital Mulund;
Interest in the term was apparently up by to control a victim by twisting their sense leads to doubts, impacting a person’s self- They may feel incompetent, unconfident, Dr Sneha Sharma, Consultant Psychiatrist,
1,740% over the previous year. So what is of reality. It is closely associated with other worth and abilities, making it harder for a or worthless. As the victim may keep GET HELP Aakash Healthcare and Dr Minakshi Man-
gaslighting, exactly? types of emotional and physical abuse. person to leave a relationship defending the abusive person’s behaviour Talk to someone trustworthy. Confiding chanda, Associate Director, Psychiatry,
The term, which has its origins in the Here are some effects of gaslighting. u Long-term gaslighting can often lead to to others, there is also the tendency to with a friend, family member, or counsel- Asian Hospital)
1938 British stage play Gas Light, tells the u It can cause a constant, nagging fear of substance misuse and chronic pain. It can become withdrawn or isolated lor may help someone gain perspective on
story of a husband who tries to convince danger, known as hypervigilance. It can cause physical health complications, So, how do I deal with it? their situation. The person can also act as Divya Naik is a Mumbai-based therapist

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NEW DELHI, mumbAi, beNGALuru, kOLkAtA, cHeNNAi, AHmedAbAd, HyderAbAd, cHANdiGArH*, PuNe* VOL. 16 NO.

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