Business

bengaluru-tech-summit-begins-flying-man-steals-show-on-the-first-day

Tue Nov 19 19:14:40 IST 2024

The 27th Edition of Bengaluru Tech Summit (BTS) 2024, with the theme ‘Unbound', being organised by the Department of Electronics, IT, BT, the government of Karnataka, and Software Technology Parks of India, Bengaluru, kicked off to a grand start on Tuesday. The event was inaugurated by Karnataka Chief Minister Siddaramaiah.

The theme ‘Unbound' refers to transcending traditional boundaries, and creating pathways for global partnerships and advancements across industries.

One of the most interesting parts of the inauguration was a flying man soaring through the venue in a futuristic jet suit designed by the UK company Gravity Industries.

Gravity Industries' Jet Suit technology is an innovation that enables human flight using a wearable suit equipped with multiple jet engines. The suit features five small gas turbines—two on each arm and one on the back—that provide controlled thrust, allowing the wearer to lift off, hover, and maneuver in the air. Piloted by body movement, the jet suit can reach speeds of over 85 miles per hour and altitudes of up to 12,000 feet, offering a futuristic glimpse into personal flight. It is designed for various applications, from search and rescue operations to entertainment and extreme sports.

Several initiatives were launched during the inauguration such as the Nipuna Karnataka which aims at enhancing the skills of local talent to improve their global competitiveness in emerging technologies. The objective is to equip Karnataka’s workforce with advanced skills that align with the requirements of high-demand sectors, thus fostering economic growth and increasing employment opportunities both within and outside the state.

As part of the Nipuna initiative, five MoUs were exchanged with global tech majors such as Microsoft, Intel, Accenture, IBM, and the BFSI Consortium, aiming to bolster collaboration and drive innovation. These MoUs aim to train 1,00,000 trainees in the next year with a placement of 70 per cent of the trained professionals.

The Karnataka government also announced the establishment of a Centre of Excellence on AI in Bengaluru to foster cutting-edge research and development. The centre is intended as a premier accelerator for AI startups, spearheaded by the IIT Alumni Center Bangalore (IITACB) in partnership with the government of Karnataka. This initiative is designed to support the next generation of AI-driven innovations by providing startups with access to capital, high-quality mentorship, industry partnerships, and technical resources.

“Karnataka is ranked first in NITI Aayog’s India Innovation Index, reflecting our unwavering commitment to leadership and progress on the world stage. Karnataka is India's largest chip designer and a key hub for machine tool manufacturing and chip design, with over 85 fabless chip design houses. We are also the heartbeat of India’s semiconductor industry. Beyond that, we supply 52 per cent of India’s biotech workforce,” said the Deputy Chief Minister D. K. Shivakumar.

He said Karnataka is also a global leader in the Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) sectors, setting international benchmarks. “The AVGC Centre in Karnataka has supported landmark projects like KGF, and by 2025, we will train 25,000 students, with nearly 70 per cent of the workforce being creative professionals. We are also top in Intellectual Property. Karnataka tops in India for the number of patent applications. Compared to states like Delhi, Maharashtra, and Tamil Nadu, Karnataka consistently ranks higher in intellectual property filings per capita,” remarked Shivakumar.

He informed that 650,000 plus employees in Karnataka are being trained on Generative AI skills in 2023-2024, with a 9X increase in Gen AI-related activities in CY 2023 over CY 2022. “Our state is also home to over 650 plus Global Capability Centres (GCCs), hosting the largest share of India’s GCC talent. Bengaluru, is home to around 400 Fortune 500 companies,” said Shivakumar.

The inauguration also marked the official launch of INNOVERSE, an innovation campus focusing on housing, developing, and nourishing deep tech innovations. This initiative is expected to help create an innovation ecosystem to nurture emerging technologies such as AI, ML, Cybersecurity, IoT etc. and foster cross-sectoral collaboration. A special video was presented, showcasing this visionary undertaking, poised to enhance India's standing in the global innovation arena and how it aspires to emulate impactful collaborations seen in space or aero or defence, social and rural commerce etc.

Over the next two days, BTS 2024 will feature a multi-stage conference across six tracks: IT, Deeptech & Trends, Biotech & Healthtech, Startup Ecosystem, Global Innovation Alliance, India-USA Tech Conclave, and the newly introduced Electro-Semicon track. International participation from more than 50 countries and high-level delegations featuring government officials, industry leaders, and innovators, from over 15 countries, including Australia, UK, France, Austria, EU, Denmark, Finland, Poland, Japan, Germany, Switzerland, Israel, and the US will participate in the summit.

indian-hotels-plans-to-double-revenue-to-rs-15000-crore-by-2030-rs-5000-crore-capex-over-5-years

Tue Nov 19 17:50:30 IST 2024

The hospitality sector was hit hard by the Covid-19 pandemic. While foreign tourist arrivals still remain below pre-pandemic levels, a strong domestic demand has given the sector a big boost in the last few years. Buoyed by this strong demand, Tata Group-owned Indian Hotels Company (IHCL) is eying a big expansion in the country, while only selectively looking at overseas opportunities. Under the new 'Accelerate 2030' strategy, the luxury hotel chain is looking to double its consolidated revenue by 2030 as well as its portfolio.

The company, which operates Taj and Gateway branded hotels, had reported a strong second quarter with net profit more than tripling year-on-year to Rs 555 crore and revenue rising 28 per cent to Rs 1,890 crore. The jump in profit was aided by strong demand as well as an exceptional gain on the consolidation of TajSATS.

IHCL now hopes to accelerate revenue to Rs 15,000 crore by 2030. In the year that ended March 2024, the company had reported a consolidated total income of Rs 6,952 crore. The company has a portfolio of 350 hotels, of which 232 are operational and 118 are in the pipeline. By 2030, it hopes to scale up its portfolio to more than 700 hotels. It envisages an investment of Rs 5,000 crore over five years as it scales up.

The company is focusing in a big way on expanding in India. IHCL, for instance, is opening two hotels —a Vivanta and Ginger—in Ektanagar, Kewadia in Gujarat. A Taj at Kochi International Airport is also coming up. It has also announced plans to open two Taj-branded resorts in the islands of Lakshadweep.

"The action is here in India. Even the FIIs (foreign investors) are coming and investing in India," pointed out Puneet Chhatwal, managing director and chief executive of IHCL.

"India's economic growth has a direct correlation with certain sectors of which hospitality is definitely one of those. The disposable income increase, the per capita income increase, the GDP growth is also leading to very strong demand growth," he said.

The company operates across various brands and segments. While Taj plays in the luxury space, Vivanta caters to the upscale category, while Ginger is more budget-friendly. In the last few years, it has also forayed into homestays with the brand ama. This gives it an advantage to expand into even smaller markets. For instance, there are over 700 district headquarters relevant to Ginger, noted Chhatwal.

ALSO READ: You’ll be surprised, but THIS is India’s best and fastest growing city

IHCL will also continue to selectively open properties in the international markets. Earlier this year, IHCL opened a new property in Thimphu, Bhutan, and two more hotels will open in the Himalayan kingdom over the next one year. It also has hotels under development in Bahrain, Saudi Arabia and Bangladesh. A new Taj hotel will also open in Frankfurt, Germany. The company will also look at Southeast Asian destinations like Singapore and Thailand, which are popular among Indian tourists.

"We will always look at any opportunities besides places, which are very strong tourism hotspots for people travelling from India or the Indian diaspora settled there," said Chhatwal.

But, "our portfolio as it stands today and as it will be tomorrow, will be 87-90 per cent centered around the Indian subcontinent. The rest will be outside."

He also made it clear the international expansion will be only under the Taj brand.

"We will only go with Taj brand in top international gateway locations with the exception of anything which is within two to three hours of flying distance from India or is within the Indian subcontinent. There some of the other brands may be more relevant but we are not going to take Ginger to Europe or to Switzerland or to Scandinavia or to the US, this is not a part of our strategy," stated Chhatwal.

For some time now, the company has looked at an asset-light model to drive growth and margins. But, being purely asset-light will not work, he said, adding the company will invest its capital for any flagship location or brand-enhancing project, like the Ginger hotel it has opened near Mumbai's airport.

The company also remains open to acquisitions and while the company will be "prudent" on raising debt, it may look at it should there be any compelling opportunity.

Earlier this November, IHCL signed a deal to run the historic Claridges Hotel in New Delhi under a 25-year management contract starting April. The Claridges is an iconic property in Lutyens Delhi and will help the company up its brand presence in the national capital. IHCL has also acquired a majority stake in Rajscape Hotels Private Limited, which owns the brand Tree of Life Resorts and Hotels. Tree of Life had 19 properties across 16 locations in the country, with a revenue of Rs 23 crore last year.

Enthused by the company's strong performance, IHCL's shares have been lapped up by investors this year. On Tuesday, the stock hit a record high of Rs 760.75 in intra-day trading on the BSE, before closing at Rs 753.40, up 2.2 per cent from the previous close. So far in 2024, IHCL shares have surged 72 per cent.

you-will-be-surprised-but-this-is-indias-best-and-fastest-growing-city

Tue Nov 19 16:37:07 IST 2024

Which is India’s best and fastest growing city? Realty consultant Knight Frank compared India’s six biggest metro regions on parameters ranging from ease of living, income and employment, health and education, real estate value, physical infrastructure and governance accessibility.

The winner will surprise you.

While the different categories had their own individual toppers, the overall top city turned out to be Hyderabad, Telangana. The city on the Deccan also scored when it came to rising real estate prices, its cohort of high net worth individuals and proactive socio-economic profile.

Bengaluru, considered one of the fastest growing cities in the world since India’s liberalisation, ended up runner-up. The Silicon Valley of India scored big with its exceptional talent pool and dynamic business ecosystem fuelling entrepreneurship.

Gulam Zia, Senior Executive director, Knight Frank India, said, “India’s emergence as a global economic powerhouse is underpinned by the exceptional performance of a select group of cities that have transformed into economic and cultural hubs. Each of the six cities have distinct opportunities to accentuate sustainable and inclusive urban development in the country.”

Mumbai (Mumbai Metropolitan Region or MMR in real estate parlance, which includes Navi Mumbai and outlying areas) maintained steady growth across all metrics, reaffirming its position as India’s financial capital, while Delhi-NCR (including Gurugram and Noida) ranked highest for its superior physical infrastructure and governance.

While Bengaluru may have lost out on the crown of being the nation’s fastest growing city, the IT capital did score big on the crucial socio-economic metrics. It has the lowest unemployment rate amongst all of India’s big cities, and the highest workforce participation rate in the country at 76 per cent.

“The city continues to solidify its reputation as a prime destination for global investments and talents,” says a statement issued by Knight Frank, “Despite recent challenges in the start-up ecosystem, Bengaluru’s economic profile remains resilient due to its diverse business activities as evidenced by strong real estate sales in recent years.”

While what might have swung the crown in Hyderabad’s favour is its robust realty sector with more residential launches than any other city and its desirability amongst investors, the local government’s massive investments in improving transport infrastructure was also pivotal. Delhi, meanwhile, not only scored on its superior physical infra and user-friendly access to public services, it came up trumps when it came to information security and privacy as well.

sexual-well-being-products-are-going-up-up-and-away-this-mens-day

Tue Nov 19 16:11:18 IST 2024

It is no March 8 and all the paraphernalia that day is feted with, being international women’s day. Yet, for what it’s worth, November 19, today, is international men’s day, and apt to talk about one of the less talked about topic that men may have on their minds 24/7, but less talked about, much less dealt with in the right manner – sex.

But thanks to a proliferation of D2C (direct to consumer) startup companies, often operating solely as online e-commerce stores, urban Indian men at least are making a beginning, sweeping away the cobwebs of taboo, stigma and lack of knowledge clouding the topic of sexual well-being.

ALSO READ: Why it is a good time for sex and adult toys in India

Industry research puts India’s sexual health market at a booming one billion dollar and growing at a compounded rate. While a good chunk of it may be in the grey market of questionable ‘medical’practices, condom sales form a big bulk of it. That is also an issue, as the only sexual well-being product in mainstream retail in the country is this product which caught the seal of approval from the authorities for its contraceptive and anti-infective qualities. Unlike in more progressive countries, Indians still had little access to sexual health products, from those promoting personal pleasure to effective remedies for concerns like erectile dysfunction (ED) and premature ejaculation (PD).

But that is changing now.

ALSO READ: German brand launches ‘digital condom’; netizens feel ‘safe’

A host of startups like BoldCare, MyMuse, LoveTreats, Sassiest and The Sangya Project are injecting some much needed shake-up to a country that has till now believed that actions speak louder than words, at least going by its population explosion. But talking is also necessary, essential for information and empowerment.

“As Indian men are facing these issues (like ED and PE) earlier than global averages, they are often confused and unprepared to manage them efficiently. They struggled to understand why it was happening and what solutions to seek,” said Rajat Jadhav, co-founder and CEO of Bold Care

“I think that narrative has changed as of now because men realise that this is not uncommon and easily manageable with science-backed, validated sexual health solutions. By incorporating lifestyle changes and overcoming their internal stigma, they are able to regain their confidence and address it with a better perspective,” he added.

While earlier many had to settle for unani products or Japani oils bought from a drug store (Jadhav himself came up with the idea for Bold Care after noticing that 40 per cent of the orders on his e-pharma startup were for sexual health products) or even a quack, the advent of the D2C digital sites has been a big differentiator – men could buy authentic, scientifically-backed products conveniently and discreetly.

Discreetness is also not an essential, if one goes by the social media campaigns of MyMuse, which has typical ‘boy-next-door’ types vouching for the effectiveness of what it calls ‘self-help massagers’. MyMuse co-founder Anushka Gupta was quoted by Inc42 saying, “We wanted to normalise the discourse around physical intimacy.”

Popular products from Bold Care include ‘extend delay spray’ as well as stamina support tablets, while lubes and oils are a popular staple for most players. Another big winner? Condoms, lubricated and flavoured ones the most preferred by Indians.

By building an online brand with science-backed sexual wellness solutions, we wanted to help men move away from unverified Unani products and Japani oils to expert-backed, clinically validated solutions. With the privacy and ease of purchase, we knew it could be a game-changer in the sexual wellness space," said Jadhav.

When MyMuse reported a revenue of Rs 15 crore in 2023 or Bold Care claims it is one of the fastest growing condom sellers in the country, the future of sexual wellness products in the country seem to be up, up and away (pun not intended). Reputed backers the companies have been getting, from actor Ranveer Singh for Bold Care and Trifecta Capital for MyMuse, also indicates the traction the field is getting.

bulls-end-longest-losing-streak-on-dalal-street-since-february-2023-heres-why-sensex-nifty-bounced-back-today

Tue Nov 19 13:44:20 IST 2024

Sensex and Nifty bounced back more than 1 per cent, thanks to stellar performance in IT and auto sectors. With this, Dalal Street saw its longest losing streak of seven sessions since February 2023 coming to an end.

Sensex and Nifty soared more than 1.4 per cent on Tuesday. The 30-stock BSE benchmark reached an intraday high of 78, 451.65 while NSE's Nifty 50 index climbed to as high as 23,780.65.

ALSO READ: SBI report pegs GDP growth at 6.5% in Q2; sees some incipient pressure on domestic economy

Among Nifty 50 stocks, Mahindra & Mahindra, Trent, Tech Mahindra, Tata Motors, Dr Reddys Laboratories, Titan, Wipro, Eicher Motors, HDFC Bank, Sun Pharmaceuticals, Adani Ports, Hero MotoCorp, Infosys and TCS were among top gainers.

The laggards in the index included SBI Life Insurance, HDFC Life Insurance, Bajaj Finserv, Shriram Finance, SBI and ICICI Bank.

ALSO READ: India markets show how tough they are! Nifty, Sensex bounce back despite third day of selling pressure

However, it is not just the benchmark indices that saw a comeback but also the mid cap and small cap indices. Nifty Smallcap 100 rose by 2.07 per cent.

Why did Sensex, Nifty surge today?

One of the main reasons for the rebound market is value buying at low levels that were last seen in June.

Strong buying from domestic institutional investors kept the market resilient while equities offloaded by the foreign institutional investors saw a decline. DIIs bought equities worth Rs 2,330.56 crore on Monday while FIIs sold shares worth Rs 1,403.40 crore.

On Monday, Sensex declined 0.31 per cent to close at 77,339.01 points while Nifty plummeted 0.34 per cent to settle at 23,453.80.

hilton-signs-its-largest-deal-in-asia-pacific-region-this-year-with-olive-by-embassy

Mon Nov 18 21:56:08 IST 2024

Hilton has signed its largest deal in the Asia Pacific (APAC) region this year with Olive by Embassy which will bring in 150 Spark by Hilton Hotels to India in the next ten years.

This also marks the the brand’s debut in Asia Pacific region. “India has a huge potential with 400 million mid segment customers in the country and 140 million to come in the next five years. Today our mid segment brand Spark has become our fastest to market brand in the world,” remarked Alan Watts, president, Asia Pacific at Hilton during a briefing in Bengaluru.

Interestingly, this deal has come in as a result of Hilton’s long-standing partnership with The Embassy Group, owners of Hilton Bengaluru Embassy Manyata Business Park and Hilton Garden Inn Bengaluru Embassy Manyata Business Park in the IT city. With this agreement, Hilton wants to target its premium economy brand Spark in the Indian market. The first Spark by Hilton hotels will open in Southern India with a focus on Maharashtra, Andhra Pradesh, Telangana, Goa, Karnataka and Tamil Nadu.

“Spark by Hilton will address a gap in the Indian market, offering affordable stays without compromise, and capturing unmet demand for value and consistency across major and smaller cities. This partnership will position Hilton to achieve a commanding presence in one of the world’s largest lodging markets,” added Watts.

Spark by Hilton was launched in 2023 and has around 100 hotels at various stages of development. Spark by Hilton hotels in India will feature multi-functional seating from communal tables to rocking chairs, offering breakfast with localized items. The brand will also offer a 24-hour retail market for on-the-go travelers.

Hilton has opened Spark hotels in the United Kingdom and Canada. In India the starting price point in Bengaluru will be in the range of Rs 4,000 to 5,000 . The pricing will also depend on the micro markets and may vary from city to city. “Spark by Hilton is the ideal brand to capitalize on the country’s growing middle-class, its infrastructure investment push, and its burgeoning hospitality sector,” said Jitu Virwani, Chairman and Managing Director, Embassy Group.

Hilton is planning to start many new properties in the country that includes its luxury, full-service hotels. This include the introduction of Curio Collection in Bengaluru, Jaipur’s first Conrad, and the entry of the Hilton flagship brand into Udaipur and Lucknow. Waldorf Astoria in Jaipur is anticipated to open by 2027. This year Hilton has made inroads into the South Asia market and made its debut in Nepal with the opening of Hilton Kathmandu and expanded its full-service portfolio with the opening of DoubleTree by Hilton Whitefield in Bengaluru. Hilton Gurugram Baani City Centre, Hilton Garden Inn Surat, and Hilton Garden Inn Jabalpur are also on track to open by the end of the year.

Hilton has a portfolio of 24 brands comprising more than 8,300 properties and over 1.25 million rooms, in 138 countries and territories. Spark by Hilton is a premium economy hotel brand which was launched in 2023. Olive by Embassy on the other hand was introduced in 2019 and is the hospitality and co-living wing of the Bengaluru headquartered real estate developer Embassy Group.

suzuki-motor-tata-elxsi-open-new-offshore-development-centre-in-pune-focusing-on-green-mobility-tech

Mon Nov 18 17:06:38 IST 2024

At a time when green mobility is gaining traction, Suzuki Motor Corp and Tata Elxsi have joined hands to set up a new offshore development centre in India to drive sustainability and future-ready automotive innovations.

Tata-owned Tata Elxsi provides design and technology services to industries including automotive, media and telecom, healthcare and transportation. The dedicated centre that has been opened in Pune by Tata Elxsi and Suzuki will drive the Japanese automotive major's innovations in advanced engineering, the companies said on Monday.

"As the industry progresses in connected, autonomous, shared, and electric technologies, Suzuki must accelerate electronic and virtual development to meet evolving demands. Tata Elxsi’s expertise in advanced computing, simulation, and design digital makes them an ideal partner in bringing forward-thinking solutions to market," said Katsuhiro Kato, the chief technology officer of Suzuki Motor.

Tata Elxsi will support Suzuki in its green mobility vision by aligning with Suzuki’s goals for sustainable innovation in lightweight design, safety, styling and engineering, eco-friendly materials, and advanced simulations to improve time-to-market, the companies said.

The partnership will also focus on next-generation powertrains and software-defined vehicles, fostering energy-efficient solutions for electric, hybrid, and alternative fuel vehicles.

Tata Elxsi’s design-led, digital-first approach was uniquely positioned to support Suzuki’s energy minimisation and sustainability goals, advancing the future of automotive engineering with precision and responsibility, said Manoj Raghavan, MD and CEO of Tata Elxsi.

In the backdrop of the partnership, Tata Elxsi shares closed 1.5 per cent higher on Monday at Rs 6,460.75, even as the broader BSE Sensex ended 241 points or 0.3 per cent lower at 77,339.01 level.

who-owns-bluesky-amid-x-odus-why-users-leaving-x-are-not-flocking-to-metas-threads

Mon Nov 18 16:26:46 IST 2024

With Donald Trump getting elected as US president, his largest donor Elon Musk's micro-blogging site X is seeing an exodus of users. Bluesky reportedly added one million new users following the US elections results as X takes a right-wing focus.

Earlier, when Brazil banned X, more than three million users joined Bluesky within a week.

ALSO READ: Is Elon Musk’s Trump love hurting X? Over 1 million users join Bluesky, Instagram’s Threads in 24 hours

Why are users leaving X not joining Threads?

Experts believe that users leaving X are choosing Bluesky over Threads due to its design. Bluesky mobile app looks similar to X, which is no surprise considering its origin within Twitter.

Amid Bluesky's emergence, Meta CEO Mark Zuckerberg announced that Threads would start testing customised topic-based feeds. Threads still stands tall as X's biggest rival with more than 275 million active users.

Who owns Bluesky?

Bluesky is primarily owned by its CEO Jay Graber. Jabber inventor Jeremie Miller, Techdirt founder Mike Masnickand Blockchain Capital general partner Kinjal Shah are on its board.

Former Twitter CEO Jack Dorsey set up the project within the company in 2019. In 2021, Bluesky became an independent company before parting ways in 2022.

How is Bluesky different from X?

Bluesky is similar to X in some ways as it allows users to post, reply and message each other on a vertical interface.

Unlike X, Bluesky allows users to moderate their experience, including choosing the algorithm that allow them to customise feeds. It also lets users keep their website addresses as user handles and thereby acting a verification tool.

Bluesky also allows users to see posts of public accounts that have blocked them.

city-gas-distributors-stare-at-big-earnings-hit-as-apm-gas-allocation-cut-again

Mon Nov 18 14:48:55 IST 2024

City gas distributors like Mahanagar Gas, Indraprastha Gas and Gujarat Gas among others are set to take a big hit on their earnings with the government cutting the gas allocation under the administrative price mechanism for the second time in as many months.

The move, which could weaken sector growth prospects, led to a sharp sell-off in shares of these companies on Monday. Shares of Indraprastha Gas tumbled over 18 per cent, Mahanagar Gas slumped 14 per cent and Gujarat Gas slipped around 7 per cent. Adani Total Gas too fell over 2.5 per cent.

ALSO READ | How factor funds can complement market-cap-weighted investments

According to policy guidelines issued by the Ministry of Petroleum and Natural Gas, domestically produced Administrative Price Mechanisms (APM) natural gas is to be provided to city gas distribution companies for priority segments, specifically domestic PNG (piped natural gas) and CNG (compressed natural gas) (transport). As per the policy, the supply of domestic gas to city gas distributors will be made only up to the quantity available and allocated to GAIL India, the nodal agency responsible for domestic gas distribution.

According to Indraprastha Gas, effective November 16, there has been a further reduction in domestic gas allocation to the company and the revised allocation is about 20 per cent less than the previous allocation. This will have an "adverse impact" on the profitability of the company, it said.

ALSO READ | Subdued corporate earnings add to investors' worries amid continued FII equity selling

Similarly, Mahanagar Gas also said that the allocation of APM gas to the company had reduced by 18 per cent, effective November 16, compared with October 16 and will impact profits. For Adani Total Gas, the reduction in APM Gas allocation is around 13 per cent.

The latest round of APM gas allocation is on top of around 20 per cent cuts that were announced on October 16, note analysts, with some saying the move indicates that the government is slowly moving the entire gas supply towards more market-linked pricing.

ALSO READ | A food price-driven inflation spike may delay interest rate cuts by RBI, say economists

Meanwhile, companies are exploring other measures to bridge the shortfall to ensure consistent gas supply continues to consumers.

Mahanagar Gas said it is "exploring options of sourcing gas through domestically produced High-Pressure High Temperature (HPHT) gas, new well/ well intervention gas from ONGC and benchmark-linked long-term gas contracts, so as to continue to provide gas to its customers with price stability."

But, consumers may also have to be ready for a round of price hikes.

"The company is examining the current situation and shall calibrate the retail prices to end consumers to mitigate the impact of lower allocation while it will continue to provide uninterrupted gas to its consumers," said Adani Total Gas.

ALSO READ | SBI report pegs GDP growth at 6.5% in Q2; sees some incipient pressure on domestic economy

Probal Sen of ICICI Securities though noted that the city gas distributors were yet to take the required price hike of Rs 4.4-6.2 per kilo in the CNG segment, following the previous cut. Consequently, it reflected in earnings per share reductions of 9.4 per cent, 18.4 per cent and 6.4 per cent for the 2025-26 financial year for Indraprastha Gas, Mahanagar Gas and Gujarat Gas respectively following their September quarter earnings, he noted.

"Now however, a further additional price hike of Rs 2.5-2.8/ kg could be required to maintain margins assuming no reduction in costs from some other source," said Sen.

It would be difficult though for companies to raise prices by Rs 8-9 per kg in one go, as such a sharp hike risks impacting volume growth. But, only a partial increase in prices would also pressure margins.

Sabri Hazarika, research analyst at Emkay Global Financial Services noted that while structural decline in APM allocation for the city gas distribution sector is inevitable, the significant 35 per cent cut in the last month with no proper policy communication is a negative. With no clarity on price hikes, the latest cut in APM gas allocation will further deteriorate margins, he said.

"City gas distribution companies highlighted post-second quarter FY2025 that the October cut was a major one with gradual cuts likely hereon and that prices would be hiked post-festive season to partially recover lost margins. However, no action has been seen so far and with this additional cut, the margin outlook has deteriorated with no near-term clarity on the course of action," stressed Hazarika.

In the absence of price hikes, he estimates a 46 per cent and 25 per cent hit on Indraprastha Gas, Mahanagar Gas’ EBITDA (earnings before interest, taxes depreciation and amortization) per SCM (standard cubic meter), compared with the second quarter run-rate, which is Rs 3.5 and Rs 8 and against the latest guidance of Rs 6-7 and Rs 10-12, he explained.

What's comforting according to Sen is that LNG prices are likely to remain moderate with 170-190 million tonnes of global liquefaction capacity addition over the next 4-5 years.

Currently, there is a 35-45 per cent price differential between CNG and petrol and diesel. If petrol and diesel prices are cut in the backdrop of lower oil prices ($70-75 per barrel range), then that would disrupt CNG economics. A potential cut in excise on CNG could offset the margin pressures due to the APM allocation cut, note analysts.

The Rs 9-10/kg of excise in CNG (14.4 per cent rate) can be lowered, which coupled with hikes in petrol-diesel specific excise could provide respite to margins of city gas distributors, said Hazarika.

"A halving of CNG excise to 7.2 per cent can offset the entire margin hit from reduced allocation," he added.

india-still-hopes-to-achieve-something-out-of-an-all-but-failed-cop29-summit

Mon Nov 18 15:31:43 IST 2024

The ongoing COP29 summit may just end up without a declaration and for all practical purposes a failure, but India will still be hoping to salvage something of strategic interest out of the globe’s premier, and wobbly, climate change conference.

With the US elections throwing up a Donald Trump, a known naysayer of climate change who in all likelihood chuck the crucial Paris Agreement goals once he takes over in January, incumbent Joe Biden has skipped the summit – so have many European Union leaders. This, and the very fact that the venue is Baku, the capital of Azerbaijan, a petro-state whose dictator Ilham Aliyev describes oil as “a gift from god” (or the fact that the previous COP also took place in an oil economy, in Abu Dhabi in the UAE) has weighed heavy in the minds of global climate activists and even statesmen and diplomats. Flagging these issues, as well as slow progress in climate negotiations, a letter signed by many former COP organisers as well as former UN secretary-general Ban ki Moon described the COP summits as “no longer fit for purpose” and called for its fundamental overhaul.

Be that as it may be, India is still hoping for progress in issues close to its heart, including the increase of climate financing target from the previously decided $100 billion to at least $1.3 trillion annually.

“COP29 presents India with a vital and unparalleled opportunity to assume a leadership role in global climate negotiations,” said Manish Dabkara, chairman and managing director of EKI Energy Services, a leading carbon credit developer and supplier globally. “G77 & Chian, including India, has called for a substantial increase to $1.3 trillion annually, far exceeding the current $100 billion pledge, to adequately support the climate mitigation needs of developing nations.

“With the current commitment falling short, India maintains that financing responsibilities should remain with developed countries due to their historical emissions contributions, rejecting any shift toward contributions based on economic capacity or emissions profiles,” he added. Environment ministry has confirmed through a statement that India has officially mooted this proposal through its lead negotiator and joint secretary Naresh Pal Gangwar. Though supported by nations like China, this proposal is expected to run into rough weather with the western bloc.

The finalisation of Chapter 6 of the Paris Agreement, setting in motion carbon markets, is another area New Delhi has a strategic interest in, considering that India has already updated its list of eligible technologies under Article 6.4 to leverage these opportunities, alongside potential technology transfer and capacity-building benefits.

“This could open new revenue streams for India through carbon credits from renewable projects like biogas, reforestation, and sustainable agriculture,” said Piyush Sohani, country director, Systema bio, a company which converts organic waste into renewable biogas.

“Finalising Article 6 will mark an important achievement for global climate policy, offering countries and businesses a unified platform to contribute toward ambitious climate goals while unlocking new economic opportunities in the carbon market,” added Dabkara of EKI.

While India will overall try to establish its position as a voice of the global south by calling for equitable climate action whereby developing nations do not bear disproportionate climate mitigation costs, it is not clear whether it will bring up the Carbon Border Adjustment Mechanism tax on products from polluting industries that European Union plans to impose from next year, and which is expected to impact many Indian exports to the region. The fact that neither PM Modi nor even the environment minister Bhupinder Yadav, nor many of their counterparts from EU are present will prove to be an impediment.

zoho-ceo-asks-non-kannada-speakers-in-bengaluru-to-learn-kannada-netizens-hit-back-on-social-media

Sat Nov 16 17:25:00 IST 2024

The debate regarding locals in Bengaluru—politicians and autorickshaw drivers alike—for non-Kannada speakers to learn the local language got a lease of life, this time from a software development veteran. Sridhar Vembu, the founder and CEO of IT services giant Zoho, took to social media platform X, urging anyone who considers the city their home to learn to speak Kannada.

Vembu remarked that it was “disrespectful” to not learn the language, triggering stark reaction online. However, the Zoho CEO’s own comment was a response to a photo post featuring two people sporting T-shirts with the words “Hindi National Language” on them, captioned, “Perfect T-shirt for Bangalore trip.”

“If you make Bengaluru your home, you should learn Kannada, and your kids should learn Kannada. Not doing so after living many years in Bengaluru is disrespectful. I often request our employees in Chennai coming from other states to make an effort to learn Tamil after they come here,” read Vembu’s response.

A Mumbai-based user did not waste much time and hit back, “I have many Kannada friends in Mumbai, living here for decades. No one can speak Marathi. Not one word. Fair?” Similar incidents of Marathi imposition were recently reported in various regions in Maharashtra, but they seldom got any steam due to the melting pot nature of Mumbai.

Similarly, Bengaluru has recently garnered a reputation as a new hub for people to move from different parts of the country, with new IT-based roles emerging due to the explosion of the startup ecosystem.

Users even suggested entrance tests in Kannada, albeit on a lighter note. “Great Sir. Let’s divide the country and make borders with the requirement of an IELTS kind certificate in the local language for entrance. Just before that, the tagline of our country, ‘Unity in diversity’, should be immersed in Ganga in Varanasi,” responded one person.

Others were very blunt and said the IT services company founder sounded “immature”. They wrote on X, “You sound immature here. Being Disrespectful for any language, culture is unacceptable but not learning a language is being disrespectful? Logic dies there.”

It was only a week ago when Sridhar Vembu went all out at Nasdaq-listed software firm Freshworks. When Freshworks announced the layoff of 13 per cent of its workforce, Vembu, criticised the company for adopting US corporate tactics.

The Zoho founder did not mince words when he posted on X: "a company that has USD 1 billion cash, which is about 1.5 times its annual revenue, and is actually still growing at a decent 20 per cent rate and making a cash profit, laying off 12-13 per cent of its workforce should not expect any loyalty from its employees ever."

"This behaviour, sadly, has become all too common in the US corporate world, and we are importing it into India. It has only resulted in large-scale employee cynicism in the US, and we are importing that too," he added.

ai-moves-from-experimental-phase-to-deployment-in-india-inc

Sat Nov 16 15:38:25 IST 2024

Artificial Intelligence is not just a buzzword, but part of business plans at more big Indian corporates. These are the findings of NTT DATA, the global business and IT service provider which services 75 per cent of the Fortune 100 companies in the world.

Experimenting with AI is over, with most Indian corporate biggies now moving into the phase of deploying AI in business use cases, the survey found. In India, GenAI is primarily used for risk assessment, fraud detection, quality control, and personalised service recommendations and knowledge management Process automation.

ALSO READ: AI readiness declines in India; only 18% firms fully prepared to deploy AI-powered technologies

All 100 per cent of Indian companies surveyed confirmed that they are using or planning to use AI to optimise their productivity. This is higher than the global average.

NTT DATA’s latest research, “Global GenAI Report showcases how organizations are mastering their GenAI destiny in 2025”, revealed a significant shift in how organisations are using Generative AI (GenAI). The research, which surveyed over 2,300 IT and business leaders in 34 countries including India highlighted the increasing focus on leveraging GenAI for long-term performance gains, moving beyond experimental use.

ALSO READ: AI is going to make our jobs easy, but is far from replacing humans entirely

While 95 per cent of Indian respondents said they had a defined GenAI strategy, 37 per cent said they hadn’t yet aligned it with their broader business plans, limiting its effectiveness. Around 87 per cent also admitted that old infra, including servers and computers, and concern over security, staff skills etc were holding them back. Resistance of employees was also a major challenge to faster adoption.

“The future is clear. Generative AI is more than just another tool – it’s a transformative force,” said Yutaka Sasaki, President and Chief Executive Officer, NTT DATA Group. “As we move beyond experimentation, a tension emerges: move too fast, and we risk unintended circumstances; move too slow and we fall behind. Getting GenAI right isn’t optional. That’s why we’re providing a blueprint to help our clients harness its potential for lasting success.”

ALSO READ: Inside the complex tapestry of AI's impact on society

While giving the thumbs up to accepting AI with open arms, the survey also found Indian companies going slow in forming AI teams and actual implementation. While 83 per cent of global biggies surveyed said they had expert or ‘robust’ AI teams in place within their organisations, the equivalent percentage for Indian companies was a much lower 67 per cent.

While globally, CEOs felt implementation of AI will help their companies with business process efficiency, sustainability, compliance and employee ease, Indian CEOs felt it will improve competitiveness and revenue growth among others.

subdued-corporate-earnings-add-to-investors-worries-amid-continued-fii-equity-selling

Fri Nov 15 18:47:02 IST 2024

The relentless selling by foreign investors in Indian stocks in October has continued well into November. After selling over Rs 94,000 crore worth of equity last month, foreign portfolio investors sold more than Rs 22,400 crore this month till November 14. While geopolitical tensions, global economic uncertainties, Donald Trump getting re-elected as US president and stimulus by China to lift its economy have majorly weighed behind the selling, disappointing earnings by many companies in July-September have also emerged as a concern.

In the wake of the selling by foreign investors, the benchmark BSE Sensex as of Thursday's close, has declined almost 10 per cent from its life high of 85,978.25 it touched on September 27, 2024. The mid and smallcap indices too have declined 11 per cent and 9 per cent respectively from their September 24 highs. Despite the correction, analysts warn that valuations in the Indian stock market remain expensive and they look more so in the backdrop of the lackluster quarter gone by for corporate earnings.

According to an analysis by JM Financial Institutional Securities, of the 227 companies out of the 275 companies that it tracks, as many as 45 per cent missed earnings estimates. More importantly, 66 per cent of the companies saw cuts in earnings per share estimates for the current financial year ending March 2025, while 45 per cent of companies saw their price targets cut by analysts. A large percentage of small- and mid-cap companies saw an earnings cut of over 10 per cent.

"There is a slowdown in urban demand across FMCG, retail, auto and mall operators. Besides this, chemicals, consumer durables and building materials have seen a moderation in demand. MFIs (microfinance institutions), select private sector banks and non-banking finance companies are witnessing stress in their unsecured book," noted Venkatesh Balasubramaniam MD at JM Financial Institutional Securities.

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A recent analysis of second-quarter earnings by Motilal Oswal Financial Services too signaled times were challenging.

It noted that the earnings growth of 166 companies under its coverage declined 8 per cent year-on-year in the July-September quarter, which was the lowest in 17 quarters.

"The aggregate performance was hit by a sharp drag from global commodities," pointed out Gautam Duggad, head of research (institutional equities) at Motilal Oswal.

In recent times, signs of a slowdown have been rising. Several large fast-moving consumer goods companies pointed to slowing demand in urban markets, while rural markets were seeing steady recovery. According to the latest data by the Society of Indian Automobile Manufacturers (SIAM), passenger vehicles saw a marginal 0.9 per cent growth in October, despite the festive period of Navratri and Diwali. Retailers Association of India's business survey showed sales pan-India grew only 5 per cent from a year ago in September 2024.

The earnings spread has deteriorated, with only 62 per cent of Motilal Oswal's coverage universe either meeting or exceeding profit expectations, noted the broking firm.

"Consumption has emerged as a weak spot while select segments of BFSI are seeing asset-quality stress," he noted.

Overall, the earnings per share estimates for the Nifty50 have seen a 7 per cent downward revision in the last six months, reducing the expected earnings growth for 2024-25 to just 5 per cent, the weakest since the financial year 2020, according to Motilal Oswal.

why-closing-debt-funding-from-banks-is-crucial-for-vodafone-idea

Fri Nov 15 16:22:47 IST 2024

When Vodafone Idea raised Rs 18,000 crore through a follow-on share sale in April this year, it was a much-needed energy boost for the ailing telecom joint venture between Vodafone and the Aditya Birla Group. However, the company is not out of the woods yet.

The telecom company's plans to raise debt of around Rs 25,000 crore are yet to be concluded. This is crucial for it to increase its network and infrastructure investments over a sustained period, which will help it start regaining subscribers and boost earnings.

So far this year, including the follow-on offer and a preferential share issue to promoters and equipment suppliers, the company has raised around Rs 24,000 crore in equity, which has helped it start the much-needed network upgradation and expansion of 4G. In September, it signed a USD 3.6 billion deal with Nokia, Ericsson and Samsung for network equipment over three years.

Vodafone Idea (Vi) has increased its 4G data capacity by 14 per cent and 4G population coverage by 22 million, reaching 1.05 billion at the end of September 2024, compared with 1.03 billion in March. It has plans to launch 5G this financial year too.

But, with rivals Reliance Jio and Bharti Airtel significantly ahead here, Vi continues to lose subscribers. Its total subscriber base has declined to 205 million at the end of September from 219.8 million a year ago. The company reported a net loss of Rs 7,176 crore in the September quarter, up from Rs 6,432 crore in April-June but lower than the Rs 8,738 crore loss in the year-ago quarter.

Notably, Vi also saw a drop in 4G subscribers in the quarter gone by, reversing the upward trend it had seen in previous quarters. In the second quarter, it had 125.9 million 4G subscribers, down from 126.7 million in the first quarter. One reason for Vi and others losing some subscribers last quarter was the price hikes. Some subscribers switched to BSNL in the aftermath of the hikes, but that trend seems to be reversing.

Additional fundraising will then become crucial for Vi to make investments in its network and arrest its slide in subscribers in the coming years. Talks have been ongoing but are yet to be concluded, with lenders reportedly seeking more clarity on the AGR (adjusted gross revenue) front after the Supreme Court dismissed the curative petitions filed by telecom operators, including Vi, in September.

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In a post-earnings call, Vi CEO Akshaya Moondra said the reduction in AGR liability was not part of the business plan submitted to banks. But, he thought that, like any interested party, the lenders were looking at what was happening on the AGR front.

The company has planned capital expenditure of Rs 8,000 crore in the second half of this financial year. Its cash and bank balance, as of September 30, stood at Rs 13,620 crore. Its debt from financial institutions stood at Rs 3,250 crore, while payment obligations to the government were at Rs 2.12 lakh crore.

The telecom company has been engaging with the government on the AGR matter since the Supreme Court rejected the petitions. It has also been in negotiations with the government in relation to doing away with bank guarantees. In the earlier call with analysts back in September, Moondra had hoped to close the bank funding in seven to eight weeks.

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Hemang Khanna, research analyst at Nomura, expects VI's pace of subscriber loss to decline in the 2025-26 financial year and the company to return to a "modest growth path" in 2026-27, underpinned by investments for expanding 4G coverage and 5G rollout. However, additional fundraising will be key.

"The outlook for Vi remains hinged on Vi closing its debt raise soon, which is critically essential for Vi to be able to invest in networks and potentially return to a modest subscriber growth path," said Khanna.

The adverse Supreme Court ruling, continued decline in subscribers and the broader market sell-off have all weighed on Vi's shares in the last few months.

Vi hit a 52-week low of Rs 7.32 on the BSE on Thursday, eventually closing at Rs 7.34 on Thursday, 0.4 per cent lower than the previous close. Since hitting a 52-week high of Rs 19.15 on June 28, 2024, the stock has corrected over 61 per cent.

why-indias-senior-living-sector-is-on-the-cusp-of-a-revolution

Fri Nov 15 15:53:08 IST 2024

India houses the world's second-largest senior population, expected to more than double from 156.7 million in 2024 to 346.0 million by 2050. This presents both challenges and immense opportunities. These observations are part of the findings in a joint report by The Association of Senior Living India (ASLI) and JLL. The report, titled 'Elevating the Golden Years: Senior Living Opportunities in India’s Evolving Market', was launched recently.

The report states that the global demographic landscape is undergoing a significant shift, with the elderly population experiencing unprecedented growth. As of 2024, India's over-60 population stands at 156.7 million which is the world's second-largest elderly cohort, despite comprising only 11 per cent of the nation's total population.

In a testament to its burgeoning potential, India's senior living sector has witnessed a remarkable surge over the past decade, with more than 20,000 specialized units now established across the country.

As per the report, the landscape is dominated by independent living facilities, which make up of around 85 per cent of the total inventory, reflecting the growing demand for autonomy among India's senior citizens.

Recognizing the potential in this niche market, senior living developers and operators are now consistently expanding their portfolios with an array of senior-friendly housing options, tailored to suit the diverse requirements of India's aging population.

ALSO READ: Homes priced over Rs 4 crore in strong demand; sales surge 38 % between Jan-Sept

Southern India has emerged as the epicentre of the country's senior living boom, comprising of 60 per cent national market share. The southern states are experiencing accelerated population aging due to sustained lower fertility and mortality rates. These regions are home to a larger proportion of parents whose children are Non-Resident Indians (NRIs). These demographic and cultural factors have cultivated a fertile ground for the senior living sector to flourish.

The report points out that there is a potential demand of 2.3 million senior living units by 2030. India's senior living market, with the current 1.3 per cent penetration rate, has vast, untapped potential. This figure pales in comparison to mature markets like the United States and Australia, where penetration rates soar beyond 6 per cent, highlighting an immense opportunity for growth and innovation in India.

“With the senior population in India projected to surpass 300 million by 2050, making up nearly 20 per cent of the total population, the demand for comprehensive senior CARE solutions is set to increase dramatically. Presently, only 5 per cent of India’s elderly have access to institutional care, and over half live without social security. With a significant gap in geriatric healthcare services as well — less than 0.7 hospital beds per 1,000 elderly—it is imperative to build inclusive, accessible, and sustainable senior care models. Wellness and healthcare should be a key focus, integrated seamlessly with housing solutions that prioritize safety, comfort, and community support,” observed Rajit Mehta, chairman, ASLI and MD and CEO, Antara Senior Care.

In recent years, India’s senior care sector has undergone a dramatic transformation. It has evolved from a nascent industry into a dynamic field, offering tailored solutions to meet the diverse and ever-changing needs of its elderly population.

The report observes that the growing market offers a diverse range of housing solutions and services tailored for individuals in this population bracket, focusing on fostering independence, social interaction, and ease of living. The care spectrum encompasses diverse options, from independent living communities to assisted living facilities, specialized memory care units for those with cognitive challenges, and comprehensive Continuing Care Retirement Communities (CCRCs). This comprehensive approach enables seniors to seamlessly adjust their level of support as their requirements evolve, ensuring they can age gracefully in a supportive setting.

“India's senior living sector is on the cusp of a revolution. By 2030, we are looking at a target market of 2.3 million households, up from 1.57 million in 2024. This is not just about numbers; it is about a new generation of seniors who are redefining retirement. They are independent, financially secure, globally aware, and socially active. We are forecasting a doubling of senior living inventory in just six years, with market penetration jumping from 1.3 per cent to 2.5 per cent,” remarked Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.

The rapid expansion of specialised units for the elderly is underscored by the establishment of over 20,000 such units across the nation in the past decade, marking a significant shift in India's approach to elder care. Despite over US $40 million in institutional investments in the last two years, the market remains in its nascent stages.

“The sector's current developmental phase, characterised by regulatory, operational, and awareness challenges, only enhances its appeal to strategic investors looking for high-growth potential. The coming years will see innovative solutions, increased investment, and a fundamental reimagining of senior living in India,” said Karan Singh Sodi, Senior Managing Director - Mumbai MMR & Gujarat, and Head – Alternatives, India, JLL.

oil-prices-enter-a-tipping-zone-good-news-for-india

Fri Nov 15 15:32:26 IST 2024

Oil prices falling might be good news for petroleum-hungry India, but for the larger global economy, it could have reverberations with far-reaching effects. A new analysis indicated that global oil prices might have just entered a tipping zone characterised by weak demand and accelerated electrification.

According to rating agency ICRA, the global demand for crude oil is set to decelerate significantly from pre-Covid levels. One major factor is the subdued demand from China, according to the analysis released Friday afternoon.

However, ICRA said its outlook for the Indian upstream sector (extraction and production of oil) remained “stable”.

One major factor for the global weakening of the petroleum ecosystem has been the decrease in demand from China. China’s demand increased by 93 lakh barrels per day from the beginning of this century till the pandemic, accounting for 40% of the global crude oil demand increase of 2.3 crore barrels per day.

However, that has all but changed. The mainland is doubling down on renewable energy. China alone accounted for over 50 per cent of the global renewable energy capacity additions last year, while nearly 40 per cent of all new vehicles brought into that country were electric or hybrids. This has had a direct domino impact on the overall global petroleum sector in an almost debilitating way.

ALSO READ | Tata Power buys 100% equity stake in ERES-XXXIX for Rs 18.56 crore

“Weakening Chinese demand, impacted by factors like large scale renewable capacity additions, burgeoning electric vehicle sales, prolonged real estate slump, vast national high-speed rail network, a substantial share of LNG and electric truck network and an ageing population... may be a drag on global oil prices,” said Girishkumar Kadam, senior vice president and group head, corporate ratings, ICRA.

“The crude oil demand growth going forward is likely to significantly trail the pre-covid historical average annual growth rate,” he added.

Elevated production of oil in the US, especially from fracking, and the uncertainty in the energy policies of the incoming Trump administration would also pull down oil demand. Except for a slight spike following Russia’s invasion of Ukraine, oil prices have remained stable in recent years.

The biggest indicator of oil’s fall from grace, so to speak, was the fact that its prices did not skyrocket after the flare-up of hostilities in the Middle East since last year. Even Israel and Iran going toe-to-toe and the resultant bombings in Lebanon haven’t had much effect.

Traditionally, such strife would have been enough to make crude barrel prices shoot through the roof—back in 2003, when the US invaded Iraq, crude had breached the 100-dollar mark. But right now, despite battles involving two oil powers, Russia and the Middle East, oil prices are struggling to maintain at 68 dollars per barrel.

amazon-haul-india-low-cost-online-retail-store-meesho-temu-shein-market-gap-but-increase-textile-waste

Fri Nov 15 14:42:03 IST 2024

Global e-commerce giant Amazon just launched its new USD 20-or-less store "Haul" in the US to give Temu and Shein a run for their money. However, all eyes are on India, one of Amazon’s biggest markets with a massive demand for low-price retail.

With Temu’s absence and the central government’s ban on Chinese apps in 2020 that led to Shein’s exit, fast fashion and low-price retail are now dominated by popup stores from Uniqlo and Miniso, brand outlets like Zudio. Apart from Meesho, there is no significant market player in the online retail space for low-cost retail products.

If Amazon launches its low-price online store in India, it is expected to receive significant traction while taking over much of the market share. An India release will position it not only against the physical stores of Zudio, Miniso, and Uniqlo but also against their online stores, Meesho, and the upcoming Shein re-entry with Reliance.

Online-only platform in a Q-commerce climate

Amazon Haul is now an online-only platform in the US in its "beta" that offers free shipping in one to two weeks on orders over USD 25 (around Rs 2,100) and a delivery fee of USD 3.99 (about Rs 330) for orders below it. With the Q-commerce boom in India led by Zomato’s BlinkIt, Swiggy’s Instamart, and Zepto, the rates would be much lower for the Indian avatar of Haul.

Despite its unavailability in India, Temu and Alibaba enjoy a significant following in India through their international shipping. Shein had a loyal customer base, with fashion influencers and customers alike swearing by the brand on Indian social media till its ban in 2020.

Much like Amazon Pay—Amazon’s answer to Google Pay and other payment apps that use UPI—Haul is expected to be integrated into the Amazon app, much like its US release.

The current prices and delivery time on Amazon Haul align with those in Temu and Shein in the US, hinting that the products might also be outsourced from markets in China. However, Amazon offers an end-to-end guarantee with a 15-day return policy, subject to certain conditions.

Back in July, a report by The Economic Times suggested the re-entry of Chinese fast-fashion label Shein in the country after more than a year of signing the partnership deal with Reliance Retail Ventures. The partnership aimed to offer Shein products through Reliance Retail’s online channels and offline stores. However, this has yet to become a reality. As part of the escalating border tensions between India and China, the central government banned Shein in 2020, along with major social media platforms TikTok and more than 30 other apps.

Sustainability concerns mount with the growth of fast-fashion

The Indian retail market has seen an explosion of fast-fashion brands and low-cost retail stores—both in the online and offline space—over the past three to four years. This has also raised major concerns among sustainability experts as the products on offer have lower lifespans, make use of plastics and artificial fibres, and add to the increasing waste.

“Most of these products have not even been tested to see if they are good or not. And yet people buy and then have to throw it away because it often times ends up being low quality,” said Nayana Premnath, sustainability advocate.

These products are often returned due to quality concerns. In the US, sellers throw away a third of the returned products, said Premnath. “I wouldn’t be surprised if a large number of returned items have the same fate in India as well,” she added.

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Premnath, who received the 2022 Cosmopolitan award for “Sustainability Influencer of the Year, urged customers to reduce returns on such purchases if they cannot be avoided, while voicing her concern regarding Amazon’s potential launch of Haul.

“I’m honestly terrified if Amazon is trying to bring about such a model to India,” she chimed in. This would lead to a spike in unnecessary purchases, leading to a higher number of returned products and, ultimately, more waste. “With a lot of Indians still being ignorant when it comes to waste segregation, freecycling or selling for money, a large number of perfectly usable items will end up at the landfill,” said Premnath.

According to the latest reports, India manages a whopping 7,800 kilotonne of textile waste in a year. This is at least 8.5 per cent of the global textile waste, hinting at a much larger trend. More than 51 per cent of the waste in India is from post-consumer sources, such as discarded clothing and returned products allegedly dumped by sellers.

tata-power-acquires-100-percent-equity-stake-in-eres-xxxix

Fri Nov 15 15:32:10 IST 2024

Tata Group’s energy arm, Tata Power Ltd, announced on Friday the acquisition of ERES-XXXIX Power Transmission Ltd for Rs 18.56 crore.

ERES-XXXIX is a Special Purpose Vehicle (SPV) company involved in power transmission, and Tata Power completed the acquisition for 100 per cent of its equity for consideration in cash on November 14, according to a regulatory filing. The Ministry of Power approved the share transfer to Tata Power.

An SPV is a separate legal entity usually created to secure assets, set up joint ventures, isolate risk, and raise capital. According to the filing, ERES-XXXIX was set up in March this year as an SPV on a build-own-operate basis to set up the transmission system at Gopalpur in Odisha.

The transmission network under ERES-XXXI comprises the 190km of 765 KV line from Angul to Gopalpur, the Gopalpur 765/400KV GIS substation, the 765KV AIS Angul bay extension, and the 400KV OPTCL-Gopalpur substation that is to be developed by OPTCL, as per the Tata Power filing.

Shares of Tata Power have fallen by at least 12.5 per cent in the past month on a cautious market outlook throughout the sector. At Thursday’s close, which also marked the end of trading for the week, Tata Power stock was at Rs 404.65 a piece.

ALSO READ | Oil prices enter a tipping zone: Good news for India?

Earlier this week, the country’s top insurer, the Life Insurance Corporation of India (LIC) announced the sale of its 2.02 per cent stake in Tata Power. The stock sale, amounting to Rs 2,888 crore, cut LIC’s shareholding in Tata Power to 3.88 per cent.

Even as India focuses on renewable energy led by major industry players such as Tata Power, the country is still reliant on fossil fuels. Since oil prices are still around USD 68 per barrel and not shooting up despite mounting tensions in the Middle East and the uncertainties in upcoming US policies under Trump 2.0, India is leveraging such low oil prices.

indian-it-flexi-staffing-market-likely-to-top-dollar56-billion-by-2025-26-with-a-workforce-of-663-lakh

Thu Nov 14 17:43:56 IST 2024

India's software services companies may have seen slow growth over the last several quarters amid global macro economic uncertainties and clients in the west curtailing discretionary spending, but the IT (information technology) flexi staffing industry, which supplies temporary or contract IT professionals continues to see steady rise and is expected to clock a 7 per cent compounded annual growth through this financial year and the next.

According to the Indian Staffing Federation (ISF), the Indian IT flexi staffing market was worth $4.9 billion (around Rs 40,580 crore) in the financial year ended March 2024, employing 5.97 lakh people. By the end of the financial year ending March 2026, it is expected to be worth $5.6 billion, with a workforce of 6.63 lakh.

The global IT flexi staffing market was valued at $114.7 billion in 2023-24 and is expected to touch $137.3 billion by 2027-28.

While IT/ITeS companies continue to be the largest employers of contract IT professionals, demand is rapidly rising from the fast expanding global capability centres (GCC) in the country. There is also a growing demand for on contract IT professionals from the telecom sector and banks and financial services companies, as well as fintechs.

ISF data shows that while growth in IT flexi staffing in IT/ITeS sector is expected to decline 3 per cent in the current financial year and rebound 6 per cent next year, GCCs are expected to clock a strong 18 per cent growth in 2024-25 and 15 per cent growth in 2025-26.

IT flexi staffing in telecom sector is seen surging 25 per cent this year and 13 per cent in the next financial year. IT flexi staffing in BFSI and fintech is seen growing 5 per cent and 6 per cent respectively during the same period. The media and entertainment industry is also likely to see an 11 per cent growth in IT flexi staff in the current financial year, followed by 6 per cent growth the next year.

"From the IT flexi staffing industry perspective, what is important is not just the size of the segment, but also how much of penetration that segment takes as flexi staffing. While, IT/ITeS is the largest segment in India with a 3.1 million workforce, they actually take 5.5 per cent of their workforce as flexi staff, where as a smaller segment such as GCC at 1.3 million takes 8.2 per cent penetration. Even smaller segments like logistics, energy and utilities; BFSI and fintech take higher flexi staffing penetration at 14.6 per cent and 17.1 per cent," said Lohit Bhatia, president, Indian Staffing Federation.

A key thing Bhatia notes is that companies are increasingly embracing agile workforce strategies to navigate rapid changes in technology and client demands, leading to enhanced efficiency and innovation.

"Organizations are leveraging flexi staffing models to tap into specialised skill sets while maintaining cost-effectiveness. As digital transformation accelerates across sectors, this growth forecast underscores an optimistic outlook for both employers seeking talent agility and individuals looking for diverse career opportunities within the Indian IT ecosystem," he noted.

Application maintenance services is the top employer of IT flexi staffing workforce. At the same time a large number of companies are also seeking professionals with expertise in cloud computing. Separately, companies in sectors like logistics, energy, utilities and engineering have seen an uptick in drone technology adoption. Similarly, fast moving consumer goods companies are building consumer experience prototypes using Gen AI, driving demand for IT professionals with these skills, ISF pointed.

"A majority of applications and the skill sets that companies are looking at is the ERP business applications, the cloud suits, data science analytics, testing and QA (quality assurance) and web development," said Bhatia.

A lot of AI work is also now coming to India given the huge population we have.

"As we have a population of 1.4 billion people, and almost 900 million consuming internet, imagine the amount of data that we are all throwing out every day. AI needs that amount of data," noted Bhatia pointing that India has over 4 lakh professionals in the AI space now and that demand will only grow.

Importantly, ISF points that smaller cities like Coimbatore, Visakhapatnam, Mangalore, Kochi, Nashik, Varanasi, Dehradun and Shillong are among 45 emerging cities seeing high demand IT flexi staffing workforce.

Ease of doing business, talent availability, infrastructure attractiveness, strategic location and or special industry incentives are some of the reasons driving the growth in smaller towns, ISF pointed.

should-indian-it-companies-be-concerned-over-the-likely-appointment-of-stephen-miller-in-trumps-new-regime

Thu Nov 14 22:13:30 IST 2024

Ever since President-elect Donald Trump has named Stephen Miller, as the deputy chief of policy there have been a lot of talks about whether his appointment will downsize the number of H1B visas in India and affect the Indian IT services industry. There have been mixed reactions to the announcement. As far as the US immigration policies are concerned, Miller is known as a hardliner.

Miller might continue with his anti-immigration stance which can also include a reduction of H1B visas and restrictions on them. Miller generally does not want especially skilled professionals in the United States.

Undoubtedly, Miller's appointment does bring some uncertainty for Indian tech professionals, especially concerning H-1B visa policies.

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During Trump's first term, H-1B visa restrictions led Indian IT companies to pivot to US hiring, creating over 1,75,000 jobs by 2019 and expanding local investments. This shift, though challenging, strengthened the Indian IT sector’s ability to meet client needs onshore, while the growing demand for digital transformation in North America provided opportunities for Indian IT firms to lead in modernisation and innovation efforts.

Miller has historically advocated for restrictive immigration measures, and if these extend to high-skill visas, it could create hurdles for Indian talent contributing to US industries.

ALSO READ | Who is Tom Homan? Trump picks former ICE chief as border czar to crack down on illegal immigrants

“Despite challenges India’s tech sector is resilient and increasingly looking at hybrid and global collaboration models. We foresee that Indian tech firms and professionals will adapt, diversifying talent hubs and fortifying strategic partnerships in other global markets. In the long run, I believe innovation and value creation will continue to shape opportunities and policies would eventually align with the ground realities,” said Aditya Narayan Mishra, CEO and MD of CIEL HR.

Experts do point out that the Indian technology industry will face the difficulty of fewer H1B visas and consequently fewer on-site opportunities for techies during the Trump regime more so with Miller on board.

“Over a period of time outsourcing and GCC have both matured significantly and they will absorb any such shocks thrown at them which would ensure very low revenue impact and equally lower impact in delivery governance. On the contrary, such acts will open more opportunities to India given its vast and diverse talent pool during the next four years,” said Subramanian S, founder, president and CEO of Ascent HR.

ALSO READ | Where will the Indian Rupee head after a fresh low against the US Dollar?

Despite Miller's hard stance, businesses in the US will need cost advantages to remain competitive and talent for deploying the latest technologies. India is extremely well-poised to fulfil these needs. There is a possibility that there would be many more GCCs being set up in India by US companies to leverage the talent pool available in India and leverage the cost advantages.

In the future under Miller, however, there could be more visa rejections making it difficult for highly skilled workers to secure them. On the other hand, there are reports that the proposed policies of Miller would make it challenging for US companies to hire Indian tech workers if the base salary level for H-1B positions increases and it is likely that due to the strict guidelines and paperwork, the visa processing time might increase.

As a result, many of the Indian IT services companies operating in the US may prefer to hire local US workers. As per reports Miller was born in 1985 in Santa Monica, California and is an alumnus of Duke University.

drivers-first-at-uber-as-ride-aggregator-announces-new-features

Thu Nov 14 17:19:11 IST 2024

It may be in the eye of a recurring storm over unruly drivers and nightmarish rider experiences—the latest coming from commuters to Bengaluru airport the last few days. However, Uber, on Thursday afternoon, went ahead and announced a slew of measures to keep its 11 lakh strong drivers in the country happy.

These include measures ranging from cash incentives to the first 10,000 drivers who register for social security benefits on the government’s e-Shram portal to SOS (location-embedded messages to police control room at the press of a button; presently available in three states) and audio recording features for safety, quicker reimbursal of earnings via UPI (can cashout five times a day, which was earlier available only on a weekly basis), mentorship programmes, and the works.

In fact, one of the new measures to keep drivers happy is an option for passengers to add a tip to the fare upfront, which, according to Uber officials, will incentivise the driver to pick up that rider faster.

Tip before the trip!

In other words, add a good tip even before the trip, and you might just get your ride faster.

When asked whether it puts customers at a disadvantage and forces them to shell out a tip if they want a ride quickly, Uber South Asia chief Prabhjeet Singh said it was all about giving a choice.

Another feature is focused on its minuscule number of female drivers, providing them with the option to pick up women passengers at certain times if they feel so.

Interestingly, a similar facility is not available for women riders to opt for women drivers. While Uber’s safety chief Sooraj Nair said he could not comment on why it is so, a representative for Uber said this was because the number of women drivers was still pretty small and giving any such option would have meant inordinately long waiting periods for customers.

Honouring the drivers

Uber’s “driver first” initiative also saw Uber drivers around the country getting felicitated, right from Shambhu Mondal from Delhi—Uber’s oldest driver with 11 years of service—to Balu R from Bengaluru, who holds the record for the most 5-star trips in the country, and more.

“We take pride in being the platform of choice for over a million drivers in India,” said Singh, “The updates announced today empower drivers, enhance their safety and offer greater convenience with more transparency in their everyday operations.”

The SOS button safety feature for drivers linked to state police control rooms is presently available only in select towns in Maharashtra, Telangana and Uttar Pradesh. Uber Officials said they are in talks with many state police departments to expand this, including Delhi.

Uber has about 1.7 crore active users in India using its 11 lakh strong driver base, taking an average of eight crore trips every month in 125 cities and towns across the country.

dr-reddys-mexico-fine-27-lakh-cofepris

Thu Nov 14 17:25:16 IST 2024

One of India's recognisable brands in pharma, Dr Reddy's Laboratories, said on Thursday that Mexico's drug regulator slapped the company with a fine amounting to Rs 27 lakh.

According to the firm's regulatory filing, the fine was due to the deviation from COFEPRIS's prescribed guidelines in filing intimation of import for a product.

COFEPRIS, or Comisi Federal para la Protecci Contra Riesgos Sanitarios, is the drug regulatory body of Mexico, which notified Dr Reddy's of a penalty of MXN 6,51,420 "for deviation from prescribed guidelines in filing intimation of import of a reference standard for one of the company's APIs."

ALSO READ | A food price-driven inflation spike may delay interest rate cuts by RBI, say economists

"Additionally, the fine was imposed due to an error in the date of the invoice and also name of the reference standard vs import license," read the filing.

Dr Reddy's shares slide on announcement

Shares of Dr Reddy's Laboratories traded in red throughout the day and dropped 1.30 per cent to Rs 1,228.80 at market close. Overall, the India markets slipped today, wit the Nifty 50 inching 0.11 per cent down and the Sensex slipping 0.14 per cent when trading came to an end for the day.

While the penalty to the Indian pharma company is minimal compared to what is usually levied by international regulatory bodies, it brings back focus to India's regulators.

Earlier this year, India's anti-trust regulator, the Competition Commission of India (CCI), was armed by the central government to impose fines that amount to up to 30 per cent of a company's global turnover if found guilty of anti-competitive practices.

The latest amendment, which enables the CCI to impose such penalties, also encourages the companies under investigation to opt for settlements or other ways to right their wrongs to avoid such rulings.

opinion-the-evolving-dynamics-of-india-s-gig-economy-policy-challenges-and-the-path-forward

Thu Nov 14 11:08:54 IST 2024

India’s labour market has undergone profound changes over the past decade, with the rapid rise of the gig economy standing out as one of the most significant transformations. Characterized by short-term, flexible contracts facilitated by digital platforms, gig work has become a key component of the country’s employment landscape.

According to NITI Aayog, India currently has around 7.7 million gig workers—a number expected to reach 23.5 million by 2030. In the long term, this sector could create up to 90 million jobs annually. However, as this workforce expands, the urgent need for regulations and enhanced protections for gig workers has become increasingly apparent, drawing substantial public and policy attention.

Gig Work in India: An Overview

India’s gig economy spans various sectors, including food delivery, ride-hailing, e-commerce, and freelance services. Platforms like Swiggy, Zomato, Ola, and Urban Company have established themselves as key players, creating new job opportunities. Gig work is not a new concept to India with 85 per cent of the Indian population being employed via the informal economy and ‘casual workers’ segment. India has always had the equivalent of gig work across urban and rural areas—from temporary farm workers to daily-wage construction labourers to household help. Thus, a significant potential for further adoption in labour-intensive sectors like construction, manufacturing and other functional roles remains untapped. What technology has enabled is the ability to provide on-demand delivery requests at a large scale.

The flexibility of gig work has become especially appealing to those seeking supplemental income, enabling individuals to work according to their schedules. A Fairwork India (2023) report found that over 90 per cent of gig workers in food delivery and ride-hailing valued the autonomy these roles provide. However, despite this flexibility, gig workers—often classified as independent contractors or delivery ‘partners’—lack essential labour protections, such as minimum wage guarantees, health benefits, and social security, often amid public apathy. As India’s gig workforce continues to grow, calls for stronger regulatory frameworks have become increasingly urgent.

Regulation of the Gig Economy: Current Status and Gaps

India's labour regulations have historically catered to formal employment, leaving gig workers in legal limbo. However, recent legislative developments have sought to address this gap. The Code on Social Security (2020) marked a significant policy milestone by extending social security benefits to gig workers. The legislation mandates that platform companies contribute to schemes covering life and disability insurance, health benefits, and old-age protection.

Nevertheless, as of 2024, implementing these labour codes needs to be faster and more balanced. According to the International Labour Organization (ILO), only 10 per cent of gig workers in India currently receive social security benefits. Many companies have delayed or avoided compliance, leaving millions needing access to basic protections. This implementation gap underscores the need for more robust enforcement mechanisms and clearer definitions of gig workers' legal status.

Judicial interventions have also shaped the regulatory landscape. In a pivotal 2024 ruling, the Delhi High Court sided with Swiggy Delivery Executives who challenged their classification as independent contractors. The court ruled that these workers were, in effect, employees and thus entitled to benefits such as health insurance and paid leave. This ruling marks a potential turning point in how Indian courts view gig work, aligning with global trends. For instance, in 2021, the UK Supreme Court ruled that Uber drivers should be treated as "workers," granting them access to minimum wage protections and holiday pay.

However, regulatory efforts face significant challenges. The fluid nature of gig work—where workers may shift between platforms or engage in both formal and informal employment—complicates the application of labour laws. This fluidity requires a more nuanced policy approach that accounts for the unique characteristics of gig work while ensuring that all workers receive adequate protection.

The Wage Fairness Debate

Wage fairness remains one of the most contentious issues in India’s gig economy. Operating on a commission-based model means payment per task rather than a fixed salary. While this model allows for high earnings during periods of peak demand, it also leaves workers vulnerable to income fluctuations as seen during the rise in fuel prices and inflation where food delivery executives saw their average earnings drop by 30 per cent between 2020 and 2024 due to changes in algorithmic pay structures and workers were forced to bear rising fuel costs, eroding their take-home pay.

In response, gig workers demanded fairer pay structures and transparency in calculations of commissions The government's new minimum wage guidelines, introduced in 2023, attempted to address these concerns by establishing a minimum wage for gig workers.

However, enforcing these guidelines has proven difficult, as platforms argue that the commission-based model does not align with traditional wage structures. This has led to calls for sector-specific wage regulations that reflect the realities of gig work, such as fuel price compensation and guaranteed base earnings.

Social Security for Gig Workers: Progress and Challenges

India’s gig workers face significant challenges, chief among them a lack of social security coverage. While the Code on Social Security aimed to address this by mandating benefits like life insurance and maternity support for gig workers, the progress has been slow, and the impact remains limited.

In September 2024, the Indian government launched a pilot initiative to provide health insurance for gig workers under the Employees' State Insurance (ESI) scheme, aiming to cover one million workers by 2025. While this program marks a step forward, experts argue that it barely scratches the surface. Given the diversity of gig work—spanning food delivery, ride-hailing, and freelance services—many argue that a tailored, multi-layered approach is essential to meet the unique needs of gig workers, many of whom rely on gig jobs as primary income.

A sustainable solution could be the establishment of a ‘national social security fund’ for gig workers, funded partly by contributions from gig platforms. This fund would provide health insurance, pension plans, and unemployment benefits, offering a safety net against sudden income loss. Such a system would allow gig workers to maintain flexibility while receiving protections similar to traditional employees. Raising awareness among gig workers about their entitlements under labour codes is also crucial, empowering them to claim the rights they’re legally afforded.

To truly build an inclusive gig economy, policy solutions must evolve beyond pilot programs, embedding social protection at scale and actively involving both gig platforms and the state in securing long-term benefits for this growing workforce.

Incorporating Women in the Gig Economy

Globally, economies have long overlooked the contributions of female labour, especially in unpaid or informal sectors, leading to significant undervaluation and invisibility in GDP metrics. A report by the McKinsey Global Institute estimates that advancing gender equality across India’s workforce—including informal labour—could add a substantial $770 billion, or about 18 per cent, to the GDP by 2025. This underscores the tremendous yet untapped economic potential of women, particularly those in the informal economy.

The gig economy offers a unique opportunity to formalize and bring visibility to women's contributions. It provides a potential pathway for women to access supplementary income, enter the job market more easily, and experience greater social mobility. By breaking down some of the traditional barriers to workforce participation, the gig economy can help women navigate systemic challenges and achieve a stronger foothold in the labour market.

However, realizing this potential requires targeted policy interventions to make gig jobs safer and more accessible to women. Efforts to ensure safe working conditions, flexible work arrangements, and enhanced social protections will be essential in fostering an inclusive gig economy that empowers women and integrates their contributions into the formal workforce.

Looking Ahead: New Models for Worker Protection

As India’s gig economy continues to evolve, innovative approaches to regulation and worker protection are essential. One promising model is the gig worker cooperative, where workers band together to negotiate better terms and conditions with platforms. This model, already adopted in some European countries, empowers gig workers by giving them a collective voice in decision-making processes. In India, gig worker cooperatives could be particularly effective in sectors like food delivery and home services, where workers often face similar challenges.

Another emerging trend is the rise of platform cooperatives, where workers themselves own and manage the platforms they work for. This model distributes profits more equitably and gives workers greater control over their working conditions. While still in its infancy in India, platform cooperatives could offer an alternative to the traditional gig economy model, promoting more equitable outcomes for workers.

Finally, increased transparency in gig platforms' pay algorithms is critical for ensuring wage fairness. Platforms should be required to disclose how pay structures are determined and provide workers with clear explanations for any changes to their earnings. This transparency would help prevent arbitrary reductions in pay and allow workers to make more informed decisions about their work.

India's gig economy offers immense potential for economic growth and job creation, but its rapid expansion has exposed significant challenges in terms of regulation and worker protection. While recent legislative and judicial developments represent progress, much work remains to be done. Moving forward, a combination of innovative regulatory approaches, such as gig worker cooperatives and platform ownership models, and stronger enforcement of labour protections, will be essential for ensuring that gig workers receive fair wages and social security. By addressing these challenges, India can create a more equitable gig economy that benefits workers, platforms, and the broader economy alike.

Diksha Yadav is a political analyst and columnist; Amal Chandra is an author, policy analyst and columnist.

Follow them on ‘X’: @DikshaYadav____ & @ens_socialis

a-food-price-driven-inflation-spike-may-delay-interest-rate-cuts-by-rbi-say-economists

Wed Nov 13 19:13:08 IST 2024

Will it cut interest rates or not? That will be a key question when the Reserve Bank of India's monetary policy committee meets next in December. Last time around, the MPC left the repo rate unchanged at 6.50 per cent, but chose to change its stance to neutral. That had sent signals that the central bank was perhaps positioning itself to start a rate cut cycle, even if shallow, in December. But, a resurgence in inflation may have thrown a spanner in the works.

The US Federal Reserve on November 7 cut its key interest rate by 25 basis points. This was on top of the outsized 50 bps rate cut in September. The Bank of England and the European Central Bank too have cut interest rates in recent months. The rate cuts in the West come at a time when supporting growth has gained priority amid escalating geopolitical tensions and cooling inflation.

In India too, slowdown signs have emerged, be it sluggish urban demand for fast-moving consumer goods or passenger vehicles. But, inflation remains a big worry. India's CPI (consumer price index) inflation surged to a 14-month high of 6.2 per cent in October. Food prices spiking 10.87 per cent last month continues to fuel inflationary pressures. As the MPC meets next, will it continue to focus on inflation and keep interest rates unchanged or will its attention turn to the slowdown signs and in turn prompt a rate cut?

ALSO READ: RBI 'neutral' stance: Here's what economists say about possible interest rate cuts in December

"While the RBI’s change in stance from withdrawal of accommodation to neutral at its last MPC raised expectations of rate cuts in December 2024, inflation data of the past two months indicates that the RBI would hold rates. This is consistent with our view that rate cuts will begin only at the beginning of 2025," pointed out Sujan Hajra, chief economist and executive director at Anand Rathi Shares.

Pranjul Bhandari, chief economist, India and Indonesia at HSBC, also believes RBI will leave interest rates unchanged in December.

"As the RBI makes its assessment of India's growth-inflation dynamics for the upcoming December policy meeting, we find that a lower proportion of activity indicators are growing at a fast clip compared to a quarter ago, particularly in financial services and consumption-related sectors. Meanwhile, even as food prices remain elevated thus far, they could start falling in early 2025, at least going by food production and sowing estimates," said Bhandari.

She feels the RBI could deliver the first rate cut in February 2025, by which time, it would have gained some confidence that the food price spike will drop.

Economists say food inflation remains a major threat to headline CPI inflation and managing that will be crucial given its impact on household consumption budgets. Besides, monetary policy alone may not be enough to get food prices under control and may need more supply-side measures from the government.

As the fresh food harvest starts reaching the market, some of the pressure on food prices is likely to ease. Prospects for winter crop sowing are also positive after good monsoon rains this year. However, current trends suggest that CPI inflation may exceed RBI's earlier projections in the October-March period this financial year and that may delay the start of a rate cut cycle, according to Rajani Sinha, chief economist at CAREEdge Ratings.

"We anticipate that headline inflation will fall below 5 per cent by the fourth quarter of 2024-2025, driven by a moderation in food inflation. This would create an opportunity for the MPC to consider a 25 bps reduction in policy rates in February meeting," said Sinha, who now sees CPI averaging 4.8 per cent for the full year ending March 2025. The RBI has earlier forecast CPI inflation to average 4.5 per cent this financial year.

CRISIL's chief economist Dharmakirti Joshi too expects the MPC to maintain a status quo in the December meeting.

"In our base case, we expect food inflation to ease this fiscal as kharif sowing has been healthy. Vegetable prices can correct sharply when fresh stocks enter the market. Accordingly, we expect the MPC to cut rates towards the end of this fiscal," he noted.

indian-single-malt-indri-looks-at-going-global

Wed Nov 13 18:01:21 IST 2024

Indri, the single malt Indian whisky that came out of nowhere to sweep multiple ‘world’s best’ awards at various fora, is now taking a shot at going global. Its makers have announced a Rs 1,000 crore expansion plan including new distillery and malt facilities, as well as perhaps a first for an Indian alco-bev company, an international distillery in Scotland.

Talk about taking the fight to the leader’s doorsteps — Walker’s better walk faster!

Piccadily Agro Industries, the makers of Indri, on Wednesday, announced its moonshot venture at taking an Indian whisky to the global stage. The plans include expanding its existing distillery and malt facilities in Haryana, establishing a new distillery in Mahasamund in Chhattisgarh, as well as a distillery in Portavadie on a 58-acre land in Scotland.

“This expansion is not just about scaling up our operations; it is about reshaping the future of premium Indian alco-bev spirits on a global stage. Our expansion across India and Scotland demonstrates our ambition to redefine the global spirits industry while solidifying India’s position as a producer of high-quality, premium alcohol," said Siddhartha Sharma, promoter, Piccadily Agro Industries.

Piccadily, listed on the Bombay Stock Exchange, had raised Rs 262 crore from investors last month, while an additional Rs 50 crore is being infused by the promoter family. The balance funding shall be tied up through a combination of internal accruals and debt, the company said in a statement on Wednesday afternoon.

The expansions are expected to be completed over the next two years, with phase 1 of the total expansion at Indri plant of malt and ethanol reaching completion in early 2025.

Launched in 2022, Indri single malt whisky won the ‘Whisky of the Year’ title at the USA Spirit Rating Awards this year, following up on its Diwali Collector’s Edition winning the top prize at the ‘Whiskies of the World’ awards last year. The Indri Reserve 11-year-old wine cask also made it to the Top 15 at the International Whisky Competition this year.

what-the-drop-in-certain-auto-sales-tell-us-about-state-of-indian-economy

Wed Nov 13 16:37:29 IST 2024

Some look for future in tea leaves. Economists have looked for future outlook at anything from underwear to lipstick sales. One sharp indicator for the Indian economy has been the sales of automobiles. And the leaves do have frown lines aplenty.

India’s auto sector seems to have salvaged itself up by the skin of its teeth as far as festive sales go—October was supposed to be a bumper month with the entire peak shopping period from Navratri to Diwali landing up in the autumnal month, and while the end figures are a solace, the data does point out to some ominous patterns.

ALSO READ: Good, bad, or ugly? How Diwali sales turned out for car and bike makers

Primary among this seems to be the indication that a bumper month was anything but that. This despite the final figures scoring high sales in many categories, especially premium cars and bike sales. Many outlets had indicated that it was but a last-minute surge in shopping in the last few days before Diwali that offered the beleaguered industry a face saver.

Even there, the performance of commercial vehicles and three wheelers poses a question mark over the larger fate of the economy. For example, three-wheeler sales fell by a sharp 2 per cent compared to the corresponding period last year. And so did goods carriers and e-rickshaws.

ALSO READ: Did the vehicle market brave the climate in the festival month of October?

“October 2024 saw two major festivals Dussehra and Diwali, both occurring in the same month, which traditionally drive higher consumer demand providing a significant boost to auto industry’s performance,” Rajesh Menon, director general of the auto industry body SIAM, said, adding that “however, three-wheelers marginally de-grew by (-)0.7 per cent compared to October of previous year, with sales of 0.77 lakh units in October 2024”.

The problem with this? Three-wheelers and goods carriers all do the hard work when it comes to small and medium enterprises, be it in urban or semi-rural areas. And any consistent drop in their sales means it is simply not business-as-usual in the Indian hinterland.

Even in categories seemingly showing growth (albeit during the festive season; there are major worries on how sales may plummet once the festive season gets over with the new year) like passenger cars, OEMs are very clearly going slow in their production, as if anticipating a cyclical economic downturn that everyone’s been bracing for. And that, the sales trend in at least certain categories seem to be clearly indicating.

indian-gaming-market-expected-to-reach-dollar92-billion-by-fy-2029

Wed Nov 13 16:42:58 IST 2024

It seems that the Indian gaming market is in for something big, it is expected to reach $9.2 billion by FY2029. With sustained growth in in-app purchases and ad revenue, the gaming market is growing at 20 per cent CAGR in five years.

The in-app purchase revenue continues to be the fastest growing segment with 41 per cent year-on-year growth. With a packed live sports season comprising two world cups and an IPL, the sector added $400 million to its top line. Gaming constitutes 30 per cent of the broader new media market, and is its fastest growing segment.

ALSO READ: OPINION: Are online real money games based on skill or chance?

Interestingly India’s new media market touched $12.5 billion in FY24 growing at a CAGR of 16 per cent. These findings are part of an annual market intelligence report findings by Lumikai, an interactive media and gaming VC fund this report was developed in collaboration with Google and Deloitte.

The report states that the Indian gaming market continues to benefit from sustained engagement metrics The Indian gaming market added 23 million new gamers to cross 590 million gamers in FY24. India is the world’s second largest market by mobile gaming downloads, 3.5 times larger than the US and Brazil.

ALSO READ: How women are finding their feet in gaming industry

The average weekly time spent on games increased by 30 per cent, from 10 hours to 13 hours. The report also adds that the revenue from mid-core games exceeded expectations clocking an astounding 53 per cent year-on-year growth.

The casual and hyper-casual games saw 10 per cent annual growth in IAP (in-app purchase) revenue, while ad revenue remained stable despite global pullbacks on ad-spends.

The IAP revenue is also driving monetisation growth in India’s gaming market and annual ARPPU increased to $22 in FY24, a 15 per cent increase from FY23. With 25 per cent of users making in-game payments, the number of paying gamers increased to 148 million.

As per the study 44 per cent of gamers are women, up from 41 per cent last year, playing casual mobile games. Another interesting finding was that 66 percent of gamers come from non-metro cities and 43 per cent of gamers are first-time earners in the age-group of 18-30, exhibiting high propensity to pay for gaming and interactive entertainment.

There has also been a 20 per cent increase in time spent on casual games in FY’24 and 25 per cent of gamers said they have spent money in games this year, consistent with FY23. Around 83 per cent of gamers had used the UPI and digital wallets to make in-game payments and the top payment motivators of paying gamers include unlocking new content and upgrading in-game items.

The report also highlights that causal games are universally enjoyed, with mid-core games being a close second preference across India. The report also found that the time spent on gaming in India is two times more that compared to time spent on social media platforms.

jiohotstar-domain-row-uae-based-kids-delhi-app-developer-reliance-update-jiostar

Wed Nov 13 15:35:43 IST 2024

“Coming soon…” reads the new website “jiostar.com”, the latest entrant into the Disney Star–Reliance Jio Cinema merger drama. For the past few weeks, social media and news channels alike have been following the amusing sequence of events triggered by a techie who approached Reliance to sell “jiohotstar.com” in a bid to fund his studies.

Dubai-based YouTubers and siblings Jivika and Jainam Jain purchased the domain from the unnamed software developer for a much smaller price after Reliance allegedly threatened legal action back in October. However, on Sunday, the Jain siblings offered Reliance the domain free of cost, in a twist that very few saw coming.

ALSO READ | Jiohotstar domain row: ‘If Reliance is NOT interested…,’ say siblings Jainam and Jivika in new offer to media-tech giant

When THE WEEK reached out to the Jain siblings in October, they confirmed the purchase and said that the deal happened over the ICANN-accredited domain registrar, Namecheap Inc.

“If Reliance doesn’t want it, that’s fine too. We’ll continue sharing our updates..” said the siblings in the video posted earlier this week. And it looks like Viacom 18 has taken them seriously.

On Tuesday, several outlets reported the arrival of the new domain “jiostar.com”. With barely any details on the website, and no public statements from Viacom 18 or any other Reliance company for that matter, users on social media are guessing that the new merged OTT streaming platform would possibly be named “JioStar”.

ALSO READ | Jiohotstar domain row: UAE-based kids take over ownership from Delhi app developer

The USD 8.5 billion merger of Reliance Industries and Disney Star received the nod from the regulators, the National Company Law Tribunal (NCLT) and the Competition Commission of India (CCI), back in August. When Reliance reported its second-quarter results, it announced that the merger would be expected to be completed in the third quarter of the current financial year, FY 2024-25.

auto-sales-two-wheelers-october-2014-diwali-wholesale-units-to-dealers

Wed Nov 13 13:26:00 IST 2024

Two-wheeler sales soared to 21.6 lakh units in October 2024, up 14 per cent from October 2023, according to official data released by the Society of Indian Automobile Manufacturers (SIAM). Total domestic passenger vehicles dispatched to dealers by companies improved to 3.93 lakh units—its highest ever for the month—from last year’s October number of about 3.89 lakh units.

Bipeds ruled the sales in the festive month that saw Navratri, Dussehra, Diwali, and Dhanteras fervour across the country, despite massive dips in major stock-market indices due to FII selloff. “October 2024 saw two major festivals, Dussehra and Diwali, both occurring in the same month, which traditionally drive higher consumer demand, providing a significant boost to the auto industry’s performance,” said SIAM Director General Rajesh Menon.

ALSO READ | GST Collection: Which Indian states collected the most tax in the festival month of October?

Around 13.9 lakh motorcycles were dispatched to dealers in October, up 11 per cent. Scooter demand was higher, with a 22 per cent growth to 7.2 lakh units.

According to the industry body SIAM, the sales jump was also reflected in the centralised government portal Vahan, which recorded more than 30 per cent year-on-year growth in registrations for passenger vehicles.

Earlier this week, Maruti Suzuki launched its compact sedan DZire, starting at Rs 6.79 lakh (ex-showroom) in India. It is also the first Maruti Suzuki car to ever get a 5-star Global NCAP rating.

In the first week of November, at EICMA 2024, two-wheeler brands Hero MotoCorp and Royal Enfield announced their new motorcycles. While the Bajaj-rival Hero launched the Karizma XMR 250, the Xpulse 210 and the Xtreme 250R, they were joined in Milan by Royal Enfield, who announced their foray into electric bikes.

swiggy-stock-price-listing-after-ipo

Wed Nov 13 17:00:55 IST 2024

Food delivery and Q-commerce giant Swiggy opened to an impressive debut run in the National Stock Exchange (NSE) on Wednesday, hitting a high of Rs 465.80. At market close, shares soared 16.92 per cent to Rs 456 for the day.

Around 11.30 crore shares changed hands at the end of the first day of trading. Morning trade saw the stock climb more 10 per cent, bringing the market valuation of the company to above Rs 100,000 crore. Swiggy's successful Rs 11,327-crore initial public offering (IPO) was fully subscribed on Friday last week by at least 3.59 times its issue.

The stock was listed at Rs 420 on the NSE versus its issue price of Rs 390, drawing comparisons to the hit 2021 debut of its rival Zomato.

ALSO READ | Markets in red: Sensex, Nifty, and rupee continue slide in morning trade

A welcome relief to a slipping stock market

Swiggy's impressive maiden trading session seemed to be a breath of fresh air in an otherwise bearish Wednesday. Both Nifty and Sensex were trading in the red, and the rupee was kept below 84.40 by the strengthening dollar in the morning amid inflation scare, FII selloff, and compounding global factors. Nifty 50 slipped 1.36 per cent to 23,559 and the BSE Sensex fell 1.25 per cent to around 77,691 at market close. Rupee close almost flat at 84.37 helped by PSU banks.

Swiggy, in its tenth year since operations began, now has more than 11 crore customers across its platforms. However, the Q-commerce brand recorded a negative cash flow from operations recently.

Swiggy's IPO proceeds are expected to be used to expand its dark store network, with the Indian market setting fertile ground for the Q-commerce sector, along with upgrading its technology, cloud infrastructure, and brand marketing.

Rival food delivery company Zomato saw its shares trade in the green in the morning session, inching up to a daily high of Rs 263.43 per share. However, it shed about 1 per cent through the day by the time markets closed.

india-markets-nov-13-update-rupee-record-low

Wed Nov 13 13:13:46 IST 2024

The Indian rupee kept its slide against the US Dollar intact on Wednesday morning trading above 84.40 levels, as Sensex and Nifty traded in the red. The rupee hit a new record low of 84.42 on Tuesday.

Despite NTPC, Airtel, and major private banks inching up, Nifty 50 was pulled down to below 26,700 by Bharat Electronics, Mahindra and Mahindra and Hindalco slipping about 2.5 per cent.

Earlier this week, official data revealed that inflation breached the tolerance level set by Reserve Bank of India (RBI) to a 14-month high of 6.2 per cent in October, mostly attributed to rising food prices.

The central government on Tuesday announced its decision to offload more onion from buffer stock to retail markets in a bid to stabilise rates despite temporary supply issues.

ALSO READ | Swiggy pulls a genie out of the bottle in market debut, shares soar more than 10%

In Tuesday’s trade, the Sensex tanked 821 points and Nifty fell below 23,900 on continued FII selloff and mounting global factors. Local investors reportedly lost at least Rs 5 lakh crore in one day. Gold and silver prices continued to slip in the national capital, marking two straight days of falling due to the sudden dip in demand, as per data from the All India Sarafa Association.

Reliance Power turns around to profitability

All is not gloom in the stock market, as Reliance Power posted a consolidated net profit of Rs 2,878 crore for the quarter ended September 2024. Last year, the company posted a net loss of around Rs 238 crores in the corresponding quarter.

Most of the profitability came from the Rs 3,230 crore it gained due to the deconsolidation of its embattled subsidiary Vidarbha Industries Power Ltd (VIPL).

According to the company statements, Reliance Power settled VIPL guarantor obligations amounting to Rs 3,872 crore in the quarter, and the latter ceased to be a subsidiary on September 17, 2024.

Hit debut for Q-commerce firm Swiggy

Food delivery company Swiggy opened its debut trading session this morning with a 10 per cent jump.

More than 40 lakh shares of the Zomato-rival were traded as of 11am IST, following last week's IPO that saw subscriptions up to 3.59 times its issue.

honeywell-hometown-solutions-india-foundation-vouches-for-deep-tech-ecosystem-in-partnership-with-iisc-bengaluru

Tue Nov 12 19:18:29 IST 2024

Picture this; India is the third-largest startup ecosystem in the world, with over 1,00,000 startups and 100 unicorns, and is expected to become the second-largest ecosystem in the world by 2030. Out of that, the deep tech ecosystem has particularly garnered interest from investors, attracting investments worth $ 6.23 billion over the last decade.

It is expected that India will have 10,000 deep-tech start-ups by 2030.

Honeywell Hometown Solutions India Foundation (HHSIF), the philanthropic arm of Honeywell India, is fostering local innovation and empowering emerging businesses in the technology domain. The not-for-profit has partnered with the Foundation for Science Innovation and Development (FSID), the incubation arm of the Indian Institute of Science (IISc), Bengaluru, and has extended research and financial support to 40 plus Indian start-ups and 9 entrepreneurs-in-residence (EIR).

In FY 23-24 HHSIF has supported a total of thirteen innovations, eight startups and five EIR programs. It has had an intensive focus on agri-tech, clean-tech, health-tech, and green-tech initiatives. Out of the ventures supported in this financial year, 50 per cent were in the field of MedTech and 20 per cent were in AgriTech.

Interestingly, three of the eight startups collaborated with were led by female founders. In FY24-25, HHSIF has committed support to 7 startups and 1 EIR in allied sectors.

In addition to financial assistance under its CSR initiatives, HHSIF has extended research support, technology, human capital, and a global network of high-net-worth individuals (HNIs), angels, venture capitalists (VCs), and micro, small, and medium enterprises (MSMEs) to all its partner entities.

A few of the start-ups were showcased during a joint briefing by HHSIF and IISC representatives. Take for instance in the med-tech space Translead Medtech Private Limited is a start-up that addresses issues faced by elderly people.

This start-up is a deep-tech spin-off from the Indian Institute of Science (IISc), Bengaluru. Its product Stand at Ease is a specially designed chair which assists elderly community members with critical joint problems to have a better stand-to-sit and sit-to-stand experience. Currently, the company is looking for scale as they are seeing a lot of inquiries.

“The price for each chair starts at Rs 25k. We are looking to scale up the manufacturing as we are confident that it will do very well in the market. We have also showcased the range of chairs in the international market as well,” remarked Manoj Kumar R., the company's founder.

On the other hand, another company in the med-tech space Open MedLabs has developed an affordable device targeted at people living with chronic conditions like diabetes.

The company's goal is to equip 25 per cent (6.5 million) insulin-dependent diabetics in LMICs of South East Asia with affordable devices within the next decade. It has developed an affordable insulin pump for Type 1 diabetes patients matching the specifications of a commercially available pump.

The startup has completed prototype development and successful animal trials. This company has also been granted multiple patents for their insulin pump. The company is now beginning manufacturing, followed by human trials, which are expected to be completed by Q2 of 2025.

Besides others, Green Collar Agritech Solutions also showcased its solutions. They have developed a product TARAM an instant quality assessment tool for turmeric. It uses Near Infrared Spectroscopy and Machine Learning to enable objective price discovery, helping farmers earn more.

The startup is currently focused on developing and marketing TARAM for chilli quality assessment, focusing on ASTA colour value, Scoville heat units, moisture, and non-volatile oil content for quality assessment.

This company is targeting over 3 million chilly farmers and agricultural labourers. The rollout of this solution is being planned for Jan 2025, prior to the chilli season in India. This start-up has also developed similar solutions for turmeric and pepper, all of which will be in full production starting Jan 2025.

In this first season, it expects to reach about 20,000 chilli farmers across Andhra Pradesh, Karnataka, Madhya Pradesh and Maharashtra.

why-marcellus-investments-saurabh-mukherjea-feels-its-time-to-circumspect-not-be-fearful

Tue Nov 12 17:33:14 IST 2024

After a massive rally over the past two years, India's stock markets have been under pressure over the past month, on the back of massive selling by foreign institutional investors. Disappointing corporate earnings in several pockets, especially consumer goods, where companies have warned of urban demand slowdown, have also added into the negative sentiments among investors.

From its recent high of 85,978.25 touched on September 27, the BSE Sensex has declined over 8 per cent. The NSE Nifty50 has slipped 9 per cent from its life high of 26,277.35.

The decline comes as foreign portfolio investors sold over Rs 94,000 worth of Indian stocks in October and a further Rs 23,900 thus far in November. Signs of a slowdown in demand in areas like passenger vehicles and fast-moving consumer goods have raised concerns about whether a sharp economic slowdown looms. Many companies missing their earnings estimates in the September quarter have added to those worries.

Ace investor Saurabh Mukherjea, the founder and chief investment officer of Marcellus Investment Managers pointed to several reasons behind the slowdown being seen, especially in consumption. One, he feels revenge spending seen post-COVID-19 pandemic has ebbed. While the elite class is thriving, the middle class has been hit hard, he noted. There is a risk that automation and AI (artificial intelligence) could squeeze mid-level jobs further over time unless AI is harnessed constructively and can complement jobs.

"We are seeing a middle-class consumption slowdown, elite items are rocking," he noted.

However, he is not too surprised by the sudden slowdown. He pointed out that after three years of strong economic growth, a cyclical downturn was expected. He doesn't see this as a massive economic crisis but still feels that the corporate earnings slowdown will perhaps worsen over the next few quarters before it gets better.

"This is a classical cyclical downturn. You had three years of strong economy, you are going to get a few quarters of softness. That's the way the whole world works. Two steps forward, one step back," said Mukherjea.

One good thing he sees is there are signs of private sector capital expenditures picking up, as was visible from earnings growth by private sector capex-oriented companies. As private investment picks up, it will create more jobs, in turn driving up consumption. However, that will play out over a few quarters and not instantly.

"It will take time for the private sector capex cycle, which has started, to create jobs. And therefore, we are looking at a few quarters of soft consumption," said Mukherjea.

So, how do navigate the equity markets in these uncertain times?

"This is a time to be circumspect, but this is not a time to be fearful," he stressed.

Mukherjea noted that the Nifty at 23 times its forward price-to-earnings ratio was still well above its long-term average of around 17-18 times. Marcellus is currently fully invested in its large-cap portfolios but is holding on to some cash in midcaps.

"Our view to our client base, whether it's foreign clients or domestic family offices, is to hold your horses a little bit, especially in midcaps. Wait a little bit, we can see the opportunities coming. The country is a fundamentally healthy, buoyant economy," he said.

Marcellus remains positive on the equity markets in the long-term; there are a lot of businesses they want to buy, but would like the valuations to come down a bit, said Mukherjea. For instance, consumer stocks could get cheaper over the next few quarters, with consumption expected to remain soft.

This is a time to rebalance the portfolios, he says.

"Deploy incremental money outside of equities and there will be a time. If this correction sustains, your equity allocation will go down and that will be a time to buy," said Mukherjea.

One advise he has is that investors allocate some money to US equities now, especially to US midcaps. According to Mukherjea, US midcaps are attractively valued and earnings growth was healthy. The US midcap stocks could also rally should US President Donald Trump take measures to boost manufacturing there.

problems-are-a-kind-of-opportunities-says-drishti-ias-founder-vikas-divyakirti

Mon Nov 11 20:52:38 IST 2024

Problems are a kind of opportunities in the industry, as per Vikas Divyakirti, founder of Drishti IAS, who has guided thousands of civil services aspirants in the country. Recalling the year 2000 when the syllabus for the civil services examination changed all of a sudden and books and other reference material were not immediately available for the exams. Taking this as an opportunity Divyakirti and worked very hard with his students sometimes extending till 15 hours to endlessly to prepare his students for the exam.

“Despite the new syllabus many of our students got very good ranks in the civil service exams. It is very important to have positive word of mouth for a business to be successful,” remarked Divyakirti during a session at Proficorn 2024, an event of the MSME business owners that is being organised in Bengaluru. The event was organised by Quantum Leap.

He said that he had a firm believe in traditionally run businesses and did not believe in a start-up kind of a business that involved heavy borrowing from the Venture Capitalists and involved heavy cash burning, eventually leading to an IPO to garner money from the masses. He said that one needs to have a great product to sustain in the market. He claimed that the attrition rates at his coaching venture was very low because of the goodwill they had created among his employees.

“Employees stay in an organisation if they get money, respect and best facilities and we have been doing that from the beginning. I had even sold one property to pay our employees on time as we were facing a cash crunch at one point of time,” remarked Divyakirti.

He further added that now it was the age of AI and social media started much before. He recalled having made an explainer video on the GST when it was introduced and gradually it had lakhs of views. He recalled that he found acting in the popular Bollywood movie ‘12th fail’ a very smooth affair and at once accepted the offer when the film maker Vidhu Vinod Chopra offered him the role. Apparently, the movie was based on Manoj Sharma one of the former students of Divyakirti who cracked the civil service exam and became an Indian Police Service Officer.

Divyakirti had cracked the civil service exam at a very young age of 22 but resigned from it because he had teaching as his passion. “It took almost 19th months for the government to accept my resignation. When I left my government appointment it was not the fear of losing a secure job but my passion for teaching. I had already got a job in Delhi University as a university job gives one social respect. Though I wanted to continue with my coaching as well, coaching doesn't really give one that kind of social reputation,” said Divyakirti.

He recalled that had set up a separate studio to create videos in 2015-16 and had hired many senior professionals to run it. Eventually his team created online coaching class videos which became immensely popular. In November 2022, Divyakirti also started his YouTube channel, which currently has over 3.75 million subscribers.

“Today it is the age of Artificial Intelligene (AI) and five years back it was social media. The benefits of AI will be clearly visible in the next two to three years,” remarked Divyakirti.

why-we-are-singing-paeans-for-vistara

Mon Nov 11 22:16:34 IST 2024

Sometime in the wee hours of the night as you sleep tonight, a plane in white and aubergine livery, coming in from Mumbai, will land at Delhi’s Indira Gandhi International Airport, its passengers and crew will disembark, and it will be towed away silently in the dead of the night into a parking slot.

It will be the end of a jubilant, if short-lived, chapter in India’s domestic aviation history.

Vistara is dead. Long live Vistara.

Why is there so much of tribute and accolades being showered on socials, as well as in office canteens and water cooler chats, over an airline Indians just about knew for one short decade?

It’s not as if airlines have not disappeared from our horizons before — from the much-storied Jet Airways down to the very ‘sexy’ Kingfisher with all its paraphernalia, India’s commercial aviation space is a veritable junkyard for airline companies who dreamed of the skies but couldn’t handle the turbulence from the ground up. From Air Deccan to East West Airlines, to even Go West last summer, it is littered with Icarian tales aplenty.

Then what was so special about Vistara?

It is perhaps the realisation amongst many of us that it is the last taste most of us will likely get of the old-world joy of flying within India, the way it was meant to be by those magnificent men in their flying machines back in the origin days of commercial flying in the west? Slick, smiling crew members in classily decorated cabins, a tray laden with a piping, hot meal, followed by some coffee or tea, and add-ons ranging from a warm blanket to the day’s newspapers, in most cases.

Of course, most Indians don’t even know, let alone have experienced, the glamour of flying in its original days — from unlimited champagne, caviar and choicest cigars (before smoking was prohibited) to some Pan Am flights even having a piano on board!

Forget Western excess, even for Indians who were happy and satisfied with hot meals and a comfortable seat with enough legroom that won’t induce thrombosis, a full-service flight experience is increasingly something of a nostalgic tale to pass down to the young generation.

And nostalgia will be where it will likely reside, as budget airlines take over the world, with the focus being ‘on time’ at the lowest rate possible and getting people from point A to point B. And the whole ‘if you want it, you pay for it!’ Philosophy.

The CEO of Ryan Air, the global poster boy of low-cost flying, was once infamously quoted saying that if possible, he would like to have passengers standing, with extra charges in case they would like to use a seat!

Budget airlines are the future, and in a particularly cost-conscious market like India that has taken to Indigo and its philosophy of spartan efficiency, Vistara then becomes the last vestige of a flying experience from a bygone era. After all, not everyone can fork out business or first-class charges, say, on an Emirates or Singapore Airlines, to experience that feeling all the time.

With Vistara subsumed into Air India, the nation will be left with just the legacy carrier as the only full-service airline in the country. Besides the fact that this will give Tatas the flexibility to determine pricing, it will also ensure that domestic flying will switch firmly into a budget flying default.

Market leader Indigo is bracing up to protect its turf, while Air India, by all indications, is set to take it on with its own budget model, Air India Express. The only other pan-Indian airlines are SpiceJet and Akasa, which both follow the low-cost model.

The paean being sung for Vistara is also ironically a testament to the utter lack of confidence Indian flyers seem to be having in Air India getting its act together. Nearly three years after the takeover by Tatas, Air India’s quality seems to have only gone for bad to worse.

While mandarins at Air India’s headquarters in Gurugram are apparently hoping that inducting Vistara and its crew with their high service quality could improve Air India’s reputation, the reverse is also a frightening possibility. One only has to hark back to the chaotic days of domestic leader Indian Airlines and its disastrous merger into the white elephant that was Air India back in the late 2000s. Let’s just hope history doesn’t repeat itself.

2024-new-5-star-ncap-maruti-suzuki-dzire-price-mileage-sedan

Mon Nov 11 15:25:19 IST 2024

Auto-giant Maruti Suzuki on Monday announced the price of its much-awaited compact sedan DZire, starting at Rs 6.79 lakh in India.

The fourth generation iteration of the popular car comes in four major variants—LXi, VXi, ZXi, and ZXi Plus—ranging from Rs 6.79 lakh to Rs 10.14 lakh (ex-showroom, Delhi), and will be the first Maruti Suzuki car to ever get a 5-star Global NCAP rating.

The heavily updated sedan, in looks and features, is now 3995mm long, 1735mm wide, and 1525mm tall, with a 2450mm wheelbase and 163mm of ground clearance.

Loaded with safety features that led to its impressive show as the NCAP crash tests, the new DZire comes with six airbags, 3-point seat belts for all seats, ABS with EBD, and hill-hold assist, along with a 360-degree camera.

What is the mileage of the new 2024 Maruti Suzuki DZire?

The entry-level sedan features the new Z-Series 1.2L three-cylinder engine that was introduced in the last Swift. Customers can choose between a 5-speed MT and the AMT transmissions. Maruti Suzuki claims a mileage of 24.79kmpl on the MT and 25.71kmpl on the AMT. The Petrol–CNG combo is expected to provide 33.73km per kg in mileage.

DZire will take on the Tata Tigor, Honda Amaze, and Hyundai Aura, and other industry offerings in the sub four-metre compact sedan category, and looks well poised to take the prime spot in the coming months.

The buzz around the car also brings focus back to the sedans, which have lost a lot of demand in the past few years to the likes of micro-SUVs and mini-SUVs led by Tata Nexon and Hyundai Verna.

the-cng-boom-and-marutis-dzire-conundrum

Mon Nov 11 18:36:23 IST 2024

India’s largest carmaker Maruti Suzuki, never a believer in the gospel of the coming electric kingdom, has succeeded in crafting, almost single-handedly, the country’s CNG vehicle boom. But, is it also becoming an albatross around the company’s neck?

On Monday afternoon, the Gurugram auto giant launched the latest, fourth generation version of its best-selling sedan, The Maruti Suzuki Dzire. Initially an offshoot of its award-winning premium hatchback Swift, the Dzire had come into its own by selling by the lakhs. Since 2008, when it was launched in the country as the ‘Swift Dzire’, it has sold more than 27 lakh cars in India alone, and millions more around the world under the Suzuki branding.

“Dzire sells more than all the other sedans put together in the country,” said Hisashi Takeuchi, managing director and CEO of Maruti Suzuki.

Hidden in its ‘dazzling’ figures is the issue Maruti is facing — a large chunk of Maruti Dzire ply as taxis. Some estimates put one third of all Maruti sales being for CNG models. The problem with that? The premiumness and ‘desirability’ one associates with a sedan gets whittled down when associated with a dusty, smelly Uber ride you just took.

Maruti’s solution? It intends to target ‘only’ the personal user with the slew of new models it has launched on Monday, with prices starting at Rs 6.79 lakh and going up to Rs 10.14 lakh (introductory rates valid till December 31 only). The three models of the new Dzire in CNG range from Rs 8.74-9.84, but are attractive for their claimed mileage of up nearly 34km for one litre (the max the petrol variant offers is 25km for the automatic variant).

“We will be selling the tour model for shared mobility,” said Partho Banerjee, senior executive officer, sales and marketing of Maruti. Apparently, Maruti’s strategy is to continue selling the older generation Tour S model for fleet operators, alongside the new fourth generation models launched today for personal users.

On the face of it Maruti is happy with the CNG and ‘hybrid’ boom in the country, something of its own making — sales of CNG cars have surged by 46 per cent this year so far. It was a Japanese strategy to go ‘technology agnostic’ and become a follower in the electric bandwagon where China is supreme that spawned hybrids and CNG cars in India (It is another matter that last week it unveiled the e-Vitara, its first electric car for India). But, the question whether these CNG models used on a massive scale by cab aggregators have made ‘Dzire’ downmarket remain unanswered. Or, will the new gen ‘dazzling’ Dzire change the perception once and for all?

jiohotstar-domain-row-uae-based-kids-delhi-app-developer-reliance-update

Mon Nov 11 13:41:42 IST 2024

The Jiohotstar domain drama that took over social media later last month has a new episode, with YouTubers Jivika and Jainam Jain offering up the domain for no cost to the Ambani-owned conglomerate Reliance.

In October, a techie who allegedly domain-squatted on ‘jiohotstar.com’ in the hopes of funding studies through its sale became all the rage on Reddit. Later that month, the domain changed hands and was taken over by Dubai-based siblings Jivika and Jainam Jain.

When THE WEEK reached out to the Jain siblings, they responded, “We bought it from him (the unnamed app developer). The deal happened via namecheap.com,” verifying the purchase through the ICANN-accredited domain registrar Namecheap Inc.

ALSO READ | Delhi techie offers to sell 'jiohotstar' domain to fund studies. Will Reliance take legal action?

However, on Sunday, the siblings released a video on YouTube stating that despite getting many offers, they never intended to sell the domain. They also added that they were ready to hand over the domain free of cost to Reliance, which recently was in the news for the Hotstar brand acquisition from Disney. “If Reliance doesn’t want it, that’s fine too. We’ll continue sharing our updates..” said the siblings in the video posted yesterday.

So far, no one from Reliance has contacted them. “If Reliance is interested, they can contact us… and we will handle the transfer smoothly,” read the siblings’ statement on the website hosted at the disputed ‘jiohotstar.com’ domain.

ALSO READ | Jiohotstar domain row: UAE-based kids take over ownership from Delhi app developer

“Over the last few weeks, there has been a lot of talk and even some videos about why we own the domain and if it connects to a possible business deal between Jio and Hotstar. We want to clear up any confusion: we never expected this attention and never meant to cause any controversy. Our only goal was to support the developer and share our seva (service) journey,” said the Jain siblings.

“With all the discussions happening, we now think it might be best for Team Reliance to have this domain, if they want it. We are happy to give jiohotstar.com to them for free, with all the proper paperwork. To be clear, this is entirely our choice. No one from Reliance or any legal group has contacted us or pressured us in any way. We made this decision on our own, without any pressure from friends, family, or anyone else,” reiterated the children.

will-bitcoin-hit-inr-rupees-69-lakhs-in-india-value-crypto

Mon Nov 11 12:45:31 IST 2024

While Indian markets slightly edged to green following Donald Trump’s victory in the US Presidential Elections last week, the true winners in the markets were those invested in cryptocurrencies, as Bitcoin, Ethereum, and major tickers soared on Monday morning.

Earlier today, around 4am IST, Bitcoin hit a lifetime high of Rs 68.9 lakhs, more than doubling its price a year ago. The latest uptick in prices was seen across other major cryptos like Ethereum, which has maintained its level above Rs 2.5 lakhs since Friday.

The end of the pandemic years showed significant deceleration in the rally of cryptos, but it looks like the markets have got a new lease of life with the latest developments in world politics.

Donald Trump is expected to rain down oil sanctions against Iran once he is sworn into power in the US, along with doubling down on energy sanctions on Russia if the Ukraine conflict continues, according to research firm S&P Global.

His campaign promises also involved more tariffs on Chinese imports. Along with the election win, the Fed rate changes last week saw the US Dollar climb to new highs against major developing currencies. Such destabilisation in currency value for emerging economies could also be attributed to the rising demand for decentralised systems such as blockchains that govern cryptocurrencies.

Even the meme crypto, Dogecoin, jumped to above Rs 20 over the weekend and has managed to stay there. More than the hike, almost all cryptos that rose on the Trump win have maintained rather steady levels for a market renowned for its volatility.

India’s government has tried to regulate cryptocurrency and its trading in the country with the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, and updated taxing regulations. However, the fact remains that the concept of cryptos and the technology itself is based on “deregulation” and “decentralisation”.

air-india-pilots-retirement-age-vistara-merger-singapore-airlines

Sun Nov 10 17:40:35 IST 2024

Different retirement ages for pilots of Air India and those of Vistara could be a potential issue, with reports suggesting that a section of the flying officers are unhappy as the merger between both carriers gets underway this week.

Formerly owned by the government, Air India came under the Tata fold in 2022. The latest merger with Vistara, which is supposed to be concluded later this week, has also raised questions regarding the confusion about the retirement of pilots.

As of now, the retirement age for pilots and staff is 58 years at Air India and 60 years at Vistara. Current DGCA regulations allow pilots to fly up to the age of 65. Reports say that management has yet to provide a statement regarding the same to clear any brewing discord.

"While the management was prompt in bringing parity in terms of salary structure and other working conditions of the employees of the two airlines as part of the merger process, it is yet to address the issue of two different retirement age limits," an anonymous source told PTI.

ALSO READ | Air India Express muses new international flights to Bangkok, GCC from tier-2 cities

Will Singapore Airlines' investment help transform Air India?

Singapore Airlines recently announced that it would invest Rs 3,194.5 crore in the merged Air India entity.

This adds to the merger consideration of 49 per cent interest in Vistara and Rs 2,058.5 crore in cash from Singapore Airlines (SIA) in exchange for a 25.1 per cent stake in the merged carrier.

ALSO READ | Kerala GST body slaps taxes on Adani’s Thiruvananthapuram airport pact

"SIA's additional capital injection is expected to be Rs 3,194.5 crore (about SGD 498 million), based on Tata's funding to Air India to date. This will occur after the completion of the merger and within November 2024 through subscription to new Air India shares," read a statement by Singapore Airlines.

gst-kerala-aar-ruling-adani-thiruvananthapuram-international-airport-trv

Sun Nov 10 16:18:14 IST 2024

The Kerala bench of the GST Authority for Advance Ruling (AAR) ruled that the concessionaire agreement between the AAI (Airport Authority of India) and Adani Thiruvananthapuram International Airport Ltd is liable to GST since it is not a “transfer of business” but supply of services.

This ruling is in direct conflict with rulings passed by the Appellate Authority for Advance Ruling (AAAR) in Rajasthan and Gujarat regarding the transfers of Jaipur and Ahmedabad airports, respectively. These state bodies exempted GST on almost identical transfers.

Back in March 2023, the Rajasthan bench of AAR said that the considerations received from the transfer of running business of whole airport operations are a “tax neutral supply”, which could persuade similar transfers in other locations in India. However, the almost identical agreement between Adani’s airport arm and AAI is now treated differently.

ALSO READ | GST Collection: Which Indian states collected the most tax in the festival month of October?

The 2021 handover of the Thiruvananthapuram airport was met with strong political opposition from both the ruling left LDF and opposing UDF alliances. However, it garnered local support in Thiruvananthapuram when social media groups, including IT professionals and residents, actively lobbied for better amenities, which, according to them, were allegedly absent in the capital city airport when compared to the PPP facilities at Cochin International Airport.

According to GST law, the transfer of a business as a going concern, as a whole or an independent part thereof, is considered a service, and such supplies are exempt from the goods and services tax. The Rajasthan AAR ruled in 2023 that the 2021 Jaipur Airport pact was a transfer of going concern and, therefore, GST exempt.

Did Thiruvananthapuram get the short end of the stick?

In 2021 and 2022, both Gujarat and Uttar Pradesh benches of AAR also ruled that business arrangements between AAI and airport proceeds in a similar manner were covered under transfer of going concern.

However, the invoice raised by AAI for reimbursement of salary and staff cost on Adani Jaipur International Airport Ltd fell under “supply of services” and hence taxable at 18% under GST, as per the Rajasthan AAR ruling.

In contrast, the Kerala ruling for Thiruvananthapuram International Airport by the state AAR said that the deal did not constitute “a transfer of business” and, therefore, will not be treated as “a transfer as going concern”. It also noted that “assets have not been transferred”, and GST is payable on the amounts received as a consideration for leasing or supply of assets to the concessionaire, that is, Adani Thiruvananthapuram International Airport Ltd. These leased assets include critical aeronautical items required to operate the airport.

The Kerala AAR bench went even further and slapped GST on the annual concession fees charged by AAI from Thiruvananthapuram International Airport Ltd as well.

Will the Kerala GST ruling hamper the development of Thiruvananthapuram International Airport?

Last month, Adani Airport Holdings Ltd (AAHL) announced a Rs 1,300 crore investment into the expansion of Thiruvananthapuram International Airport under the name “Project Anantha”.

With an aim to do a significant overhaul of the infrastructure by 2027, the expansion includes an extended renewal of the terminal, with a focus on Kerala’s culture and heritage. It remains to be seen what will happen to the plan now that there are tax implications in the mix.

AMRG & Associates Senior Partner Rajat Mohan noted Kerala AAR’s contrasting stance, saying, “this discrepancy highlights the need for clearer guidance at a national level to ensure uniformity, as businesses navigating such transactions could face inconsistent tax treatment.” The only similarity with the GST body’s treatment of the identical Jaipur deal was the 18 per cent GST levied on the invoices raised by AAI for reimbursement of salary and staff cost since they come under “supply of services”.

spicejet-conducts-seaplane-trials-to-offer-services-across-india-soon

Sat Nov 09 15:52:08 IST 2024

SpiceJet announced it will launch seaplane services across the country from next year. The destinations will include places like Lakshadweep, Shillong, Guwahati, Hyderabad etc.

The seaplane service seems aimed at boosting tourism and connectivity to remote and picturesque locations. The airline already has the rights to operate seaplanes on 20 routes. “Seaplanes have the potential to transform India’s regional connectivity, opening up access to some of the most stunning, yet remote, parts of the country,” said SpiceJet chairman & MD Ajay Singh. “We are taking concrete steps to bring seaplane operations to life in India once again. We are excited to help drive this initiative forward, partnering closely with the government and civil aviation authorities to ensure these services become a reality and a success.”

SpiceJet has partnered in seaplane trials across multiple locations, providing crucial engineering, technical, and logistical support. “Our journey in regional connectivity has been a purposeful one, rooted in the belief that everyone, no matter how remote, deserves access to affordable and efficient air travel,” said Avani, Ajay Singh’s daughter who previously led SpiceHealth, is now spearheading SpiceJet’s seaplane project.

The announcement was made on Saturday during a demonstration seaplane flight from Prakasam Barrage in Vijayawada to Srisailam Dam, both in Andhra Pradesh, attended by Chief Minister Chandrababu Naidu and Union Civil Aviation Minister K. Rammohan Naidu.

SpiceJet started India’s first scheduled seaplane service in October 2020 linking the Sabarmati Riverfront in Ahmedabad to the Statue of Unity in Kevadia, Gujarat. But the service had to be discontinued soon. The budget airline is planning to restart seaplane services under the UDAN (Ude Desh ka Aam Nagrik) scheme of the union government which offers subsidies and a cap on airfares.

air-india-express-ai-new-flights-bangkok-middle-east

Sat Nov 09 14:34:47 IST 2024

Air India Express announced its plans this week to add more routes from tier-2 and tier-3 cities to the Middle East and South East Asia. The carrier, which recently merged with AIX Connect, looks to increase its fleet to 110 aircraft by the end of the fiscal year.

Officials of the Tata Group-owned airline said that the carrier expects to fly to 55 destinations by March 2025, adding domestic routes and international destinations such as Bangkok and Phuket in Thailand.

With most passenger traffic peaking in the metro-to-non-metro routes, Air India Express MD Aloke Singh reiterated the importance of tier-2 and tie-3 cities and towns "growth engines".

"We want to provide connectivity between the full service, long haul, wide-body side of the business and the domestic tier-2, tier-3 cities," Singh told the media on Friday.

Tata has been consolidating its airline business, with AIX Connect completing its merger into Air India Express and the Vistara brand coming under the Air India fold next week.

ALSO READ | ‘Generations will be grateful to him for making India a better...’: PM Modi remembers Ratan Tata

Ankur Garg, Chief Commercial Officer (CCO) at Air India Express, said the carrier is considering starting services in Bangkok and Phuket. Bangkok is expected to get direct flights from tier-2 cities.

The airline also expressed the possibility of adding routes to Malaysia and Hong Kong in the future. However, it will take time since the carrier will look at the performance of these sectors.

Earlier on Friday, the Air India Group also announced a shuffle in senior management ahead of the Vistara merger.

Vistara CEO Vinod Kanan is expected to continue as the Chief Integration Officer even after the merger, reporting directly to Air India CEO Campbell Wilson.

ALSO READ | Jet Airways: From major Indian private air carrier to bankruptcy and liquidation

Vistara Chief Commercial Officer Deepak Rajawat will become the CFO of Air India Express, reporting to CEO Aloke Singh. The incumbent CFO of Air India Express, Vikas Agarwal, will move to a new role at Air India.

"Over the past two years, the four Tata airlines have worked hard to prepare for and execute one of the most complex mergers in aviation history," said Wilson, the Air India CEO.

what-is-elon-musk-net-worth-how-tesla-shares-zoomed-after-donald-trump-wins-election

Sat Nov 09 14:52:03 IST 2024

With shares if Tesla surging after Donald Trump's election victory, Elon Musk's net worth surpassed $300 billion, according to Bloomberg Billionaires Index.

What is Elon Musk's exact net worth?

Tesla stock soared around 28 per cent, taking Musk's fortune to $313.7 billion with a leap of $50 billion. The business mogul, who owns X, is the biggest gaining individual since Trump's emphatic victory.

However, this is not the first time Trump's net worth crossed the $300 billion mark. In 2021, his fortune was touched an all-time high of $340.4 billion.

This comes after the President-elect announced that his policies would benefit the SpaceX founder, including support for the astronautics firm's push to reach Mars.

Musk, on the other hand, had donated a whopping $1 million to Trump's presidential race.

Another move by Trump in Musk's favour was backtracking from his July announcement to slow the transition to electric vehicles. In August, after Musk backed and donated for the Trump campaign, the Republican said, "I am for electric cars. I have to be, because Elon endorsed me very strongly."

A strong earnings report by the car-maker also boosted Musk's fortune in mid-October, raising his net worth by $34 billion in a single day.

The Republican has also hinted that Musk will be given the role of an advisor.

swiggy-ipo-stock-debut-nov-13-2025-zomao-rival-share-bse-nse

Sat Nov 09 13:23:25 IST 2024

With an oversubscription of 3.59 times its initial issue, food delivery aggregator Swiggy became the biggest consumer-tech IPO in Asia year-to-date. It also cemented its place as one of the top 10 largest IPOs in the country, led by October’s Hyundai India subscription call.

Swiggy received robust backing from institutional investors, with over 6 times subscribed by QIBs. Despite foreign investors pulling more than USD 11 billion from Indian markets in October, Swiggy received at least USD 1.3 billion in bids from FPIs.

ALSO READ | All you need to know about Swiggy’s Rs 11,300 crore IPO

However, given the trend of IPOs in India recently, the retail part of the subscription received a lacklustre response, with just 1.14 times booking. The Bengaluru-based online food and grocery delivery firm opened its IPO from November 6 to November 8, with an initial price band of Rs ₹371 to Rs 390 per share.

On its tenth year since operations began, Swiggy now boats a little over 11 crore customers on its platforms. Despite around 40 per cent CAGR from fiscal 2022 to 2024, Swiggy still records a negative cash flow from operations.

With the allotment to be finalised on November 11, the Swiggy stock will be listed on the Indian exchanges on Wednesday, November 13.

The proceeds from the Swiggy IPO are expected to be invested in the Bangalore-based company’s arm, Scootsy, in a bid to expand its dark store network for its growing Q-commerce business, technology and cloud infrastructure, and brand marketing. Apart from new dark stores, Swiggy plans to open larger stores to offer more products and reduce average delivery times. Swiggy will also look for acquisitions through fundraising.

As of date, Zomato is the only other food aggregator listed in the Indian markets. Its Q-commerce arm, Blinkit, directly competes with Swiggy’s Instamart.

modi-india-article-oped-remembrance-ratan-tata-india

Sat Nov 09 11:42:54 IST 2024

“It has been a month since Shri Ratan Tata Ji left us. From bustling cities and towns to villages, his absence is deeply felt across every segment of society,” begins Indian Prime Minister Narendra Modi’s article remembering the celebrated industrialist. The 86-year-old chairman emeritus of Tata Sons passed away in Mumbai on October 9.

In his “oped”, PM Modi recalled how Tata was the driving force in realising the inception of the Vadodara-based aircraft complex. The production unit, set up to produce C-295 military aircrafts, was recently inaugurated by the Prime Minister, along with the Spanish President Pedro Sánchez.

“Shri Ratan Tata’s presence was greatly missed,” said PM Modi.

ALSO READ | When Ratan Tata chose his ill dog over 'lifetime achievement award' presented by British Royals

“In recent years, he became known for mentoring India’s start-up ecosystem, investing in many promising ventures. He understood the hopes and aspirations of young entrepreneurs and recognised the potential they had to shape India’s future,” added the prime minister, recalling Tata’s last years, where he invested in upcoming companies.

PM Modi also went beyond talking about Tata’s greatness as a businessman. He remembered the industrialist’s love for animals, how he often shared photos of his pets and his “ability to care for the most vulnerable.”

Last month, it was reported that Ratan Tata made provisions in his will ensuring “unlimited” care for Tito, his German Shepherd, in a rare move in a country such as India. Tata reportedly adopted Tito about five or six years ago following the passing of his previous dog by the same name. According to his will, Tito will be taken care of by his cook, Rajan Shaw.

The article also pointed out Tata’s commitment to the country in times of crisis, referring to the Mumbai terror attacks in 2008. “His swift reopening of the iconic Taj Hotel in Mumbai after the 26/11 terror attacks was a rallying call to the nation—India stands united, refusing to yield to terrorism,” said PM Modi.

In 2008, Rata Tata was honoured with the country’s second-highest civilian award, the Padma Vibhushan. The nation, where many people, including entrepreneurs and hardworking professionals, mourned his loss, came together to honour him as condolence messages poured over social media. Apart from the loss of Ratan Tata, October was also a dark month for Indian markets as foreign investors pulled out funds, the highest since the Covid years, triggering a fall in major indices.

the-world-of-legal-cannabis-and-how-it-is-getting-popular-in-india

Fri Nov 08 19:40:55 IST 2024

Welcome to the world of Cannabidiol or CBD, derived from plants like Cannabis Sativa and Cannabis Indica that we better know by names ranging from marijuana and hemp, or simply, by its variant, ganja.

But CBD refers to the medicinal products derived from the plant. Administered as oils, tinctures or even as a neat capsule, CBD is a bonafide medicine whose popularity has been on the upswing in India in recent times — so much so that that there are over 20 CBD-focused medicine manufacturers in the country, with top players like Bombay Hemp Company, Awshad and Indian Hemp Organics (IHO).

“With more people seeking natural remedies for conditions like pain, anxiety, and insomnia, demand for safe, effective CBD products is rising,” said Richa, co-founder of Awshad.

Richa ventured into cannabis-based medicines and pain relievers after witnessing the agony and struggle of her beloved pet dog Champ, as he went through a slow, agonising death due to cancer.

“Witnessing his pain inspired me to explore plant-based wellness, leading me to co-found Awshad with Shivam in 2021,” Richa said.

CBD is used for pain, anxiety, insomnia and inflammation, coming in various forms, ranging from full-spectrum of the tetrahydrocannabinol (the main psychotropic part of the cannabis plant), broad spectrum and isolate forms, the levels strictly regulated for medical formulations.

Of course, let’s put any mistaken notion of morality and civics to rest, right away. Cannabis and its various forms of psychoactive substances have been culturally and an intrinsic part of Indian history and social life for centuries, ranging from the mythologies down to lifestyles and festive observations. They were regulated only in the mid-1980s in the country with the draconian Narcotic Drugs and Psychotropic Substances (Prevention) Act 1985, commonly known as NDPS. The act came mainly after major pressure from the Reagan-era USA, which was then struggling under an influx of cocaine and other chemical drugs easily smuggled in from Latin America.

More worryingly, such trade was also increasingly seen to be financing terrorism and the mafia in many parts of the world. While nations of the world cracked down, a natural Indian healer ended up as the big casualty.

However, the CBD formulation we are talking about is completely legal, a Schedule E-1 drug that is regulated by the Ministry of AYUSH as well as state excise departments. The products are officially allowed on prescriptions and for therapeutic use only, with the cannabis sourced from government-approved farms in Madhya Pradesh, Uttarakhand and Uttar Pradesh, which are strictly regulated and monitored.

“The scope of medical cannabis in India is growing immensely as awareness of its therapeutic benefits expands with our efforts and other companies on educating customers,” added Richa.

In recent years, recreational cannabis, too, is getting legalised by an increasing number of countries, including Canada, Thailand, many states in the US as well as many countries in Europe. A discussion paper asking comments whether to legalise cannabis and the like is pending with the union government. An expert committee in Himachal Pradesh last year recommended that cannabis be legalised in the state, to generate revenue and create employment.

trending-is-starbucks-app-down-for-us-customers-trying-to-access-holiday-menu-2024

Fri Nov 08 18:31:20 IST 2024

Several Starbucks customers in the United States complained that they were unable to place orders through its mobile app on Thursday -- the first day of the coffee chain's holiday menu. However, Starbucks later claimed that the issue was resolved.

From ordering beverages to buying reusable cups and merchandise, multiple services offered by the Starbucks app were unavailable, US citizens claimed on social media. They were asked to place their order at a Starbucks store, US media reports quoted people as claiming. "We're sorry for the inconvenience," the message displayed by the app was headlined. "Mobile ordering is currently unavailable. Please visit one of our stores and place your order with a barista," it further said.

Confirming the glitch, Starbucks Care's official handle replied to a customer stating, "we are currently experiencing a temporary outage of the order ahead and pay feature in our app. We continue to welcome and serve customers in our drive-thrus and stores." However, the coffee chain hasn't elaborated on the cause, nature and scale of the issue.

The response was given to a user called Chritine D, who asked, "is the app down? first day of Christmas at Bucks and my app with ALL my stars won’t work?"

According to a Business Insider news report, a platform tracking website outages found several users reporting problems with the Starbucks app around 8 a.m. local time. It coincided with the time most Americans tried to order their morning coffee. The media house, in an online article, mentioned that its staff in Washington, DC, and New York City offices tried to place orders using the app but failed.

As a part of the 'Starbucks Holiday Menu 2024', the company is offering Cran-Merry Orange Lemonade Refreshe, Cran-Merry Orange Refresher, Peppermint Mocha, Iced Gingerbread Oatmilk Chai and Turkey Sage Danish among other items. CLICK HERE TO ACCESS FULL MENU

inr-vs-usd-indian-rupee-depreciation

Fri Nov 08 16:40:48 IST 2024

Over the last few days, the Indian Rupee (INR) has been depreciating against the Dollar (USD). The Rupee dropped to a fresh low against the Dollar to an exchange of Rs 84.38 on Thursday.

This depreciation against the Dollar in recent days following Trump’s election victory, as expectations rise that his policies may further strengthen the dollar index.

Few market experts with whom THE WEEK spoke feel that given the resilience of the Indian economy, this rupee dip appears temporary and will appreciate in the days to come, and some of them say that it will be a while before the Rupee heads back.

“Adding to our economy’s strength, the Fed’s past two interest cuts will bring a gradual increase in dollar supply which could support the Rupee’s recovery. However, it’s crucial to closely monitor Trump’s proposed trade policies, such as imposing tariffs of 10 per cent or more on all US imports and potential hikes on Chinese imports, to assess their long-term effects on the Rupee,” remarked Edul Patel, Co-founder and CEO of Mudrex.

ALSO READ | Did you notice these five important changes to your health insurance? No-claim bonus and more…

Experts feel that the Rupee has hit fresh record lows over the past few sessions due to a host of domestic and global factors. Many feel that the Rupee may continue to remain weak over the near term. “We expect the US Dollar index to strengthen further on growth optimism over Donald Trump’s victory in the US Presidential elections as his pro-growth stance has to be funded by enhanced borrowings, leading to further weakness in the US bonds. As the US bond yields are likely to rise further on Trump’s win, it may be negative for the domestic currency,” Anuj Choudhary, research analyst at Sharekhan by BNP Paribas, told THE WEEK.

He remarked that the emerging market currencies are vulnerable. The Chinese economy is also not performing that well, which has led to weakness in the Yuan. This may strengthen the Dollar further and weigh on risk currencies such as the Rupee. “Unless China announces a huge stimulus that may impress the markets/investors, we do not expect the Yuan to recover. In fact, if Trump hikes tariffs on imports from China, the Yuan may need to be devalued further to make Chinese exports competitive. This would again be negative for the Rupee,” added Choudhary.

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This expert is of the opinion that the domestic economy is not faring too well either. There have been huge FII outflows over the past couple of months. If the trend continues, further foreign outflows can be seen, which could lead to higher demand for the Dollar. India’s CPI rose to 5.49 per cent in September, overshooting RBI’s target of 4 per cent for market expectations of 5 per cent. RBI has projected India’s inflation for FY25 at 4.5 per cent, despite concerns over inflation. Rising food inflation may also continue to mount pressure on the Rupee.

Interestingly, in his speech, Donald Trump said that he was going to stop all wars. In such a case, there could be some cooling off in commodity prices, and the risk premium would decline.

“A decline in crude oil prices would benefit the Rupee as it is the biggest contributor to India’s import bill. This may support the Rupee at lower levels. Any fresh foreign inflows amid improved global risk sentiments may also support the Rupee at lower levels. The Indian bonds may get support from India’s bonds inclusion in the FTSE Russell’s major global bond Index next year. FOMC rate cuts and the possibility of the RBI cutting rates in December or January may limit the downside in the Indian bonds, which may support the Rupee. In the near term, we expect the Indian Rupee to trade in the range of 84 or 83.80 on the lower side. On the higher side, we expect the Rupee to test at 84.80 or 85 levels. The trend is bearish for the domestic currency,” explained Choudhary.

ALSO READ | SBI quarterly results beat estimates, but shares tank

The recent all-time low of the Rupee against the Dollar reflects global uncertainties, but strategic developments could alter the outlook. It is expected that the Rupee will remain under pressure in the short term until more clarity emerges on the geopolitical and global trade landscape; however, the medium-term outlook looks positive. With Donald Trump winning the US election for a second time, his historically positive relationship with India could play a vital role in supporting the Indian currency. “Trump’s administration previously promoted pro-India policies that strengthened trade and investment ties, and this established rapport could foster more favourable trade terms, boost bilateral investments, and potentially stabilize foreign inflows into India. Such an alignment would benefit both markets, as stronger economic cooperation could attract investment, drive trade, and support broader financial stability,” Rohit Beri, the CEO and CIO of ArthAlpha.

This expert adds that for India, this could mean a bolstered rupee as more US–India trade and investment flows in. Meanwhile, the US could gain from a stable partner in India, with growth-driven collaboration across technology, manufacturing, and energy. “The positive economic cycle generated could lead to job creation, market expansion, and innovation sharing, setting up a strong foundation for the future of both economies,” remarked Beri.

five-rule-changes-by-irdai-to-health-insurance-policy-premium

Fri Nov 08 16:24:24 IST 2024

The central insurance watchdog of India, the Insurance Regulatory and Development Authority of India (IRDAI), recently stepped up its efforts to bring more people under health insurance. With the goal of “insurance for all” by 2047, the IRDAI’s latest norms hint at a more customer-centric approach, adding more clarity and inclusivity to the mix.

From the start of the financial year in April 2024, IRDAI made some very crucial changes in rules governing health insurance, including the slashing of cancellation fees on certain plans. These changes came via various notifications from the regulator.

While the rules came into effect earlier this year, the regulator gave insurance firms a transition time till the end of September to fully comply with the new rules that were released in March and May this year. This also included existing policies in force. So, if you are a health insurance policyholder, it would be beneficial to note the latest update to the rules.

1. Health insurance gets a no-claim bonus!

If you drive an automobile, you would be familiar with the concept of a no-claim bonus in vehicle insurance. According to the new changes to the rules, there are two ways in which the insurance companies can provide you with a bonus, as long as you haven’t filed any claims for the year.

They can offer the customer a choice for either a discounted premium for the upcoming year or an increase in the overall sum insured without changing the premium.

2. Cancelling a health insurance policy gives you a better refund

If you are not happy with the current health insurance policy and want to cancel it, it is now easier than ever. Yes, this applies even if you have made a claim. According to the new regulations, if a customer provides the insurance company with a written notice of seven days, you will get a refund in accordance with the time remaining in the policy. For instance, if you paid Rs 50,000 for a policy and decided to cancel it after six months have passed, you will get half of it—Rs 25,000—as a refund, provided you haven’t made any claims. IRDAI has also slashed the cancellation fees.

ALSO READ | Who is Rishit Jhunjhunwala, the new CEO of Truecaller?

3. Higher scrutiny on claims but less paperwork for the customer

The IRDAI has instructed the insurance companies to collect the relevant documents for each claim from the hospitals. On top of that, each claim will now go through a “claims review committee” by the insurance company for approval. If the claim is denied either fully or partially, the committee needs to give proper reasons and point to the exact documentation.

4. No more 'missing' important policy details and information

All insurers need to display prominent information regarding health insurance. For instance, they need to display which hospitals and healthcare providers can provide cashless claim settlements, which ones are included in the network, and a clear set of details needed from the customer for reimbursement if claimed in hospitals outside the network, along with steps to follow for cashless claim settlements and reimbursements. They also need to provide clear information on the time period needed to service the claims and process the reimbursements.

5. Insurers will be slapped with fines if they go against the ombudsman

The IRDAI increased the fines on insurance companies if they delay following an order from the ombudsman. If the insurer does not follow the order within 30 days, they also need to pay a penal interest in accordance with the ‘Protection of policyholders’ regulations published in the Gazette.

Most insurance companies have already updated their websites, as these rules have come into full effect since October began.