Issue No.

: 29
SSIM Business News Letter

Siva SivaniCrafting
Institute of Management
Careers Since 1992

Business News Letter

(For private circulation only)

Issue No. : 29 August, 2019

Compiled by - Faculty Team : Dr. V. Annapurna, Assoc. Professor, Dr. A. Kalyani, Asst.Professor,
Dr. G. Uma Maheswari, Asst.Professor & Mrs. Kiranmayi Patel, Asst.Professor
Student Team : B. Akshay, Rahul Kumar Khetan, D. Kunal, M. Mani Sai, Shalini Ydav, Priya Shinde,
Alekhya, P. Meghana, D. Gayathri, A. Sri Rahul, K. Rohit, K. Rajashekhar, K. Shiva.

Yes You Can.. IN THIS ISSUE

You Are Your Biggest Competitor v CORPORATE NEWS............................ 2
Imagine this—If Michael Phelps was to be considered v ECONOMY AND POLICY..................... 4
as a nation, he would rank as the 39th most successful
v INFO TECH & LOGISTICS................... 6
nation in the 122- year old history of the Summer
Olympics. His 23 gold medals are almost two and half v MONEY & BANKING............................. 8
times the gold medals won by India (nine) : in all v MARKETING......................................... 9
Olympic Games taken together. Hiding behind his v MARKETS........................................... 10

glittering closet filled with gold medals, there is another
v MERGERS & ACQUISITIONS............ 12

side to Phelps’ life.
v PEOPLE IN THE NEWS...................... 14
As a 10-year old child, he was diagnosed with ADHD
(Attention Deficit Hyperactivity Disorder), making it v EMERGING ENTREPRENEURS......... 15
extremely difficult for him to focus on a single thing for never once missed a day of practice—unless injured.
longer durations. But this is where he differed from He was determined to be the best and he made it
other kids of his age. After he was introduced to happen through sheer hard work. Thus, his success
swimming by his mother, he discovered his love for the was because of his ability to do what others did not
sport and subsequently made it his life’s goal to become want to.
the best swimmer ever that the world has ever seen. To
His life story holds numerous lessons for students and
overcome his inherent problem, Phelps trained six
aspirants alike, Success is a limited commodity and as
hours a day, seven days a week, 365 days a year, for
with any other commodity that is limited in number and
almost two decades. Be it the Weekends, Christmas or
has a lesser supply than demand, the price of success
Birthdays— all these days were the same for him. He
is quite significant, thus
making it unaffordable
for many. However, it is
still considered to be a
great leveler since the
only cost that success
demands is hard
work—a commodity that
can’t be purchased
anywhere and has to be
imbibed through self-
efforts.

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 Issue No. : 29
SSIM
Have you ever been in a position as a student where
you leave out studying a certain topic since you thought
that others would also skip it, either because it is too
complex or since it seems unimportant? Almost every
student goes through this phase. But this is where the
problem lies. With same levels of preparation as the
other students, it would be foolish to expect a different
result than others.
One of the most standout features of all successful
people is that they put in extraordinary efforts day in
and day out, without waiting for one fine day in the
future when their quest towards excellence would
begin. They do not procrastinate. If you take a look at
some of the world’s greatest athletes, most successful
entrepreneurs, or anyone who has mastered their craft,
and try to find the connecting line amongst all of them,
you will find that they made a firm commitment to
achieve daily excellence. There are no off days in your
journey towards success until you reach your goal.
When your competitors aren’t taking their time off, how
CORPORATE NEWS
Cafe Coffee Day founder VG Siddhartha
allegedly commits suicide: Reports
Cafe Coffee Day Group founder V.G. Siddhartha
allegedly committed suicide on 30 July, night. VG
Siddhartha is the son-in-law of former Karnataka CM
and BJP leader SM Krishna. He has been missing since
Monday 30 July, night after he drove in his Innova car
towards Mangaluru, stopped midway at Ullal bridge,
and abandoned the car. Siddhartha was on a phone call
when he got off the car, the driver revealed. The
circumstances in which he went missing has set off
suspicions that he may have taken the extreme step for
reasons that are not in the public domain.
Novartis India introduces 26 weeks of gender-
neutral parental leave
Multinational drug maker Novartis has introduced a
gender-neutral parental policy for its employees in
India, in step with what is increasingly becoming a trend
in corporate circles. The new global parental leave
policy is part of a phased roll-out that will cover Novartis
company employees across the world by 2021.The
policy is applicable with retrospective effect to
employees who became parents on or after January
30, 2019. And in case both parents work with Novartis,
both will be entitled to 26 weeks leave, the drug maker
added.
In India, the policy has come into effect from July 1, and
will apply to birthing and non-birthing parents in the
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can you afford to do that?
All successful people have one thing in common—they
believe that they can do what others have not even
thought about. They do not bind themselves with the
opinions of others. They set their own limits and decide
their own path rather than looking for a path already
made by someone else. Edison thought he could create
the light bulb, Phelps thought that he could win an
unthinkable and unprecedented 8 gold medals in a
single Olympics.
We have all had some brilliant ideas in the middle of the
night, only to find that in the clear light of day they were
not worth pursuing or worth giving up what we were
currently pursuing, The recipe of success is simple.
Believe in your goal and don’t restrict your efforts just
because someone else thinks that your goal is too far
away. Dare to be extraordinary to be the best.
[Compiled from Competition Success Review (CSR),
June 2019.
case of birth, adoption and surrogacy, a Novartis
statement said. “Our parental leave policy is a symbol
of equality for all new parents in the company, offering
choice and giving both parents precious time to spend
bonding with their new baby,” said Novartis’ recently
appointed India head Sanjay Murdeshwar, adding that
the move will foster a more inclusive culture in the
organisation.
Non-birthing parents will be able to take leave in one
go, or two tranches of 13 weeks each, within a year of
birth, adoption or surrogacy of their new child. Novartis
joins global companies such as Microsoft, Facebook
and Netflix who have reportedly brought in similar
initiatives.
The Jet Airways insolvency case brings to
fore grey areas in aviation law
The insolvency proceedings of Jet Airways have put the
aviation industry in a spot as the sector’s regulator is
grappling to cope with the grey areas in insolvency
laws. Jet’s is the first case where an airline is undergoing
insolvency proceedings in India.
The first hurdle is how long Jet Airways can enjoy rights
over its parking slots at various airports. Jet Airways
has 750 slots with more than 50 per cent of them at
congested metro airports like Delhi, Mumbai and
Bangalore which are considered to be prime attraction
for the airline. Read more
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 Issue No. : 29
SSIM
Aditya Birla Idea Payments Bank to close
operations
Nearly 17 months after it began operations, Aditya Birla
Idea Payments Bank Limited Saturday announced
winding up of its business on account of “unanticipated
developments” that made its economic model
“unviable”.
The company is the fourth payments bank to shut shop
after Tech Mahindra, Cholamandalam Investment and
Finance Company and a consortium of Dilip Shanghvi,
IDFC Bank Ltd and Telenor Financial Services that
pulled the plug of operations. Read more
Zeta raises first external funding from
Sodexo, valued at $300 million
BENGALURU: Zeta, a start-up that offers meal and
other corporate benefits to employees, has raised its
first external funding round from French employee
benefits giant Sodexo at a valuation of $300 million.
Zeta, promoted by Bhavin Turakhia, has been the serial
entrepreneur’s next big investment after he exited
Directi in 2014 for $160 million. Bhavin’s brother
Divyank also exited Media.net in 2016, selling the
company to a Chinese conglomerate at a valuation of
$900 million. Read more
With over Rs 9,000 crore debt, Anil Ambani’s
Reliance Naval now stares at bankruptcy
MUMBAI: Lenders led by IDBINSE -3.14 % Bank have
turned down a resolution plan proposed by Reliance
Naval & Engineering, which has not been servicing its
more than Rs 9,000 crore of debt for several months
now.
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The lenders will now initiate bankruptcy proceedings
against the company of the Anil Ambani-led Reliance
NSE -2.19 % Group, said a bank executive involved in
the matter. Lenders rejected the proposal for want of
viability. With no proposal for an upfront equity
investment or repayment of a part of the loan in default,
lenders believe the firm is beyond resolution and
liquidation may be the only option, the bank executive
said. Read more
For PayPal, India becomes biggest
technology centre outside US Opens
Hyderabad office, third after Bengaluru,
Chennai
PayPal, Nasdaq-listed online payment solutions
provider, has opened a global technology centre in
Hyderabad, the third for the company after Bengaluru
and Chennai.
The Madhapur facility, which houses about 100
engineers, will focus on data science, risk management
and machine learning. It aims to empower small and
medium-sized businesses to identify and protect
themselves from fraud.
Of about 3,500 employees in India, about 2,500 are
engineers and the rest work in customer support,
compliance and operations. The expansion follows the
acquisition of fraud prevention platform, Simility, last
year.
“The India technology centre is the largest for PayPal
outside the US and work on technologies ranging from
artificial intelligence, machine learning to blockchain,”
Guru Bhat, Vice-president (Engineering) and General
Manager of PayPal India, said. Read more
Communications panel okays ₹3,050-cr
penalty imposed on Airtel, Voda-Idea
The Digital Communications Commission (DCC) on
Wednesday approved the penalty imposed on Bharti
Airtel and Vodafone Idea amounting to ₹3,050 crore
(cumulative) for not providing points of interconnection
to Reliance Jio.
The decision comes after the Telecom Regulatory
Authority of India (TRAI) recently maintained its stand
that t is not in a position to modify its previously
recommended penalty on the operators as it is bound
by the provisions of the TRAI Act. Read more
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SSIM
ECONOMY AND POLICY
Uttar Pradesh to become India’s first trillion-
dollar state economy: Flipcart CEO
The second Ground Breaking Ceremony will help Uttar
Pradesh’s quest to be first trillion-dollar state economy
in India. “The ground-breaking ceremony will play a key
role in propelling Uttar Pradesh (UP) as an industrial
and innovation hub in the country and help in the state’s
quest to be India’s first trillion-dollar state economy,”
said Flipkart Group Chief Executive Officer (CEO)
Kalyan Krishnamurthy on the sidelines of the event for
ground-breaking of industrial projects worth around Rs
65,000 crore. Memoranda of Understanding (MoU)
were signed for the same during the UP Investors’
Summit last year.
Flipkart, which was acquired by the United States (US)
retail firm Walmart last year, is keen on promoting
MSMEs and one-district-one-product (ODOP) in Uttar
Pradesh, its Chief Corporate Affairs Officer Rajneesh
Kumar said. The ODOP project is one of the key
initiatives of the Adityanath government, which seeks to
promote traditional industries synonymous with their
respective districts to spur the local economy and
create jobs, Kumar said.
With a Rs.10,000-crore fund and multi-
company team, this Chennai firm is on an
airport building mission.
With the Chennai airport likely to reach saturation in 10
years, the AAI is looking for a green-field project in the
outskirts of the city. A sovereign fund has shown interest
in investing around 30 per cent in the AIF, said Gigi
George, Managing Director, TOFL. Chennai-based
Taking Off to the Future Pvt Ltd (TOFL) plans to develop
private airports, both Greenfield and brownfield. TOFL’s
first project may be a new airport in Chennai.To this
end, it has formed a SEBI-approved, airport-specific
₹10,000-crore fund. The Taking Off to the Future Airport
Fund is a Category II Alternative Investment Fund (AIF),
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and supposedly a first of its kind in the airport sector.
After World Bank, China-led development
bank pulls out of Amaravati project
The Beijing-backed Asian Infrastructure Investment
Bank has dropped plans to finance a new capital for the
Indian state of Andhra Pradesh, after the World Bank
pulled its support on Friday.
The construction of the city, known as Amaravati, is the
brainchild of the state’s former Chief Minister, N.
Chandrababu Naidu, who lost power in elections in
May.
“AIIB is no longer considering the Amaravati Sustainable
Infrastructure and Institutional Development Project for
funding”. Read more
India sews coalition of 9 nations to push
development at WTO
India has formed a coalition of nine countries to place
special provisions for developing countries and high
farm subsidies in advanced nations that harm African
states at the forefront of global trade talks.
Stating that special and differential treatment (S&DT) is
a “non-negotiable right for all developing countries”, the
grouping said “all members, no matter their trade share,
must have an equal say in decision making” of the
World Trade Organization (WTO).
The US has proposed withdrawal of these for emerging
economies, which are members of the Organisation for
Economic Cooperation and Development, G20,
classified as “high income” by the World Bank or
account for more than 0.5% of global merchandise
trade.
“No country can fight alone, and the joint proposal is a
win for developing members because it will draw other
countries to join the coalition. This carries substantial
political weight,” said a Delhi-based expert on WTO
matters. Read more
Amendments to Companies Act gets green
signal in Lok sabha
Amendments pertain to unspent CSR funds, de-
clogging NCLT and curbing shell companies Lok Sabha
approved amendments in the Companies Act, which
are intended to bring more discipline in the compliance
of Corporate Social Responsibility and de-clogging the
National Company Law Tribunal (NCLT).
“This set of amendments are aimed at ease of doing
business for small, medium, and large companies,”
Finance Minister Nirmala Sitharaman said while
replying to the debate on the Bill. This Bill has 12 new
amendments along with 31 amendments that were a
part of the ordinance that was promulgated thrice —
November 2018, January 2019 and February 2019.
Read more
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 Issue No. : 29
SSIM
Centre issues new circular to deal ‘firmly’
with tax evaders
Even though Finance Minister Nirmala Sitharaman has
asked taxmen to firmly deal with tax evaders, a detailed
strategy advisory was circulated on July 11 for handling
demonetisation cases, which has even spelt out the
first set of questions to be asked to assessees.
A senior I-T officer told BusinessLine that the advisory
is a technique to micromanage tax collection from North
Block (New Delhi) in demonetisation cases. It has
pointed out that I-T returns of fiscal 2013-14, 2014-15,
and 2015-16 could be scrutinised in demonetisation
cases. Read more
New direct tax code panel report to overhaul
I-T Act delayed by 15 days
The much-anticipated report on the new direct tax code
(DTC) to overhaul and simplify the 58-year-old Income
Tax Act has been pushed back by a fortnight. The
taskforce, set to submit the report on July 31, was
handed a 15-day extension at the last minute to
incorporate views of the new members, said the official
statement.
“The government has allowed the task force to submit
its report by August 16, in light of the fact that the new
members… requested for more time to provide further
inputs,” the government said in a release.
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The government had last month expanded the scope of
the taskforce to look into five more areas and nominated
two new members — Chief Economic Advisor (CEA)
Krishnamurthy Subramanian and Joint Secretary
(Revenue) Ritvik Pandey. Read more
India only Asian economy that’s growing its
export share amid trade war
Trade tensions between the US and China have given
India an opportunity to ramp up exports to both countries
The only major Asian economy that’s grown its export
share since the start of the tariff wars in 2018 is the one
with the fewest trade links to China.
India’s share of world exports rose to 1.71 per cent in
the first quarter of 2019 from 1.58 per cent in the fourth
quarter of 2017, data compiled by Bloomberg show.
The share of every other economy among Asia’s 10
biggest exporting nations fell in the same period.
Part of the reason for India’s outperformance is that it’s
not as integrated into global manufacturing supply
chains as peers, which means exporters are cushioned
from rising trade tensions in the region. It’s a sentiment
that was flagged by central bank Governor Shaktikanta
Das in a recent interview. Read more
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SSIM Business News Letter

INFO TECH & LOGISTICS

Apple bounces back, iPhone shipments grow
in India 19%, fall 11% globally
In an earnings call with analysts late Tuesday, Cook
said that tactically, the emerging markets had a bit of a
rebound in the third quarter that saw Apple Services
vertical grow further.
"In fact, on a constant currency basis, we actually grew
slightly in emerging markets. We still declined on a
reported basis. India bounced back. During the quarter,
we returned to growth there. We are very happy with
that. We grew in Brazil as well," said the Apple CEO.
The return of Apple in India comes at a time when the
company is reportedly set to manufacture top-end
iPhone XS and iPhone XR smartphones courtesy its
supplier Foxconn in the country. Read more
British apparel brand Superdry to launch
India e-comm site
British fashion brand Superdry
will be adopting an omni-
channel retail strategy as it
plans to launch its India
website mid-August. The
company’s products are
already sold across several
key e-commerce platforms
such as Myntra, Ajio and
Amazon.
The brand, which entered
India in 2012 through a long-
term distribution agreement
with Reliance Brands, has been witnessing high double-
digit growth. Manu Sharma, Business Head, Superdry
India, said the India website is aimed at providing a
seamlessly integrated omni- channel experience to
consumers.
“The Superdry India website will have over 4,000
options and this will enable consumers to shop from a
more diverse range of products,” he said. “We expect
7-10 per cent of our topline sales in the coming year to
come from the site. The key drivers will be our best-
selling products such as t-shirts and shirts.”
The British clothing brand is known for its vintage
Americana styling with Japanese-inspired graphics.
Read more
Why using the right sales technology can be
crucial to connect with buyers
In recent years, we have entered the era of insight-led
marketing and of highly
personalised services
and experiences. To
keep pace with the fast-
changing, complex and
demanding business
landscape, sales
professionals need to deploy innovative and modern
selling practices. Today, technology, and particularly
sales automation, is bringing new levels of productivity
to selling. Sales intelligence tools help to build a seller’s
understanding before they engage with a customer or
prospect. This enables them to deliver greater insight
and value from the start.
India has historically been a relationship-based sales
environment, characterised largely by referral selling,
wherein building and maintaining credibility is important.
Therefore, relationships, built on a foundation of trust
are more important than ever before. Sales
professionals, particularly those from younger
generations, are embracing new technologies to bridge
the gaps with buyers, build trusted relationships and
increase their relevance. Read more
Wipro launches digital product compliance
lab in Hyderabad
The 10,000 square feet lab will serve customers in
automotive, defence, consumer electronics, aerospace,
telecom, medical, energy and manufacturing, the
company said in a statement.
IT major Wipro on Wednesday announced the launch
of a global digital product compliance lab in Hyderabad
with international standards for reliability, safety and
security for customers across industries.
The 10,000 square feet lab will serve customers in
automotive, defence, consumer electronics, aerospace,
telecom, medical, energy and manufacturing, the
company said in a statement.
It will be a part of Tarang Labs, Wipro's independent
product qualification and compliance laboratory with
testing capabilities for electromagnetic compatibility,
safety, environment, wi-fi, bluetooth, shock and
vibration, noise, material, calibration and medical
devices.
Tarang Labs also offers consultancy services for
standards compliance, certification testing, pre-
certification testing and interoperability and is the only
lab in southeast Asia qualified to certify wi-fi and
bluetooth devices. Read more
12-yr-old builds innovative solutions for
traffic rule violators; files for 4 app patents
Teenager designs 4 apps that help curb road accidents
Innovations come naturally to this Maharashtra boy
who has barely turned 12 but has already applied for
four patents for apps designed to curb road accidents
and vehicle theft. Road Transport and Highways
Minister Nitin Gadkari saw a presentation by this young
talent master, B S Revant Namburi, and assured him
support to bring the technologies into reality, subject to
technical clearances from his department.
A Class VII student of Mount Litera Zee School in

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 Issue No. : 29
SSIM
Nagpur, the apps developed by Revant relate to
monitoring traffic violations in real time and includes
tools like a seatbelt sensor, breathalyser, heart rate
analyser, and CPU, designed to store information and
alert the authorities.
The second app developed by Revant uses quick
response (QR) codes to enable printing of data and
document anywhere without the requirement of network
connectivity. Read more
MPEDA bets big on exports of live seafood by
air
Realising the export potential of chilled and live marine
foods in the overseas markets, the Marine Products
Exports Development Authority (MPEDA) is looking at
the possibility of sending such shipments by air.
The agency has sought the Civil Aviation Ministry's
intervention to facilitate logistical requirement for such
consignments through the airports. Read more
Kolkata is a top warehousing hub now
West Bengal, particularly Kolkata and its suburbs, is
fast emerging as one of the major warehousing and
logistics markets in India. According to sources, deals
worth ₹500-₹700 crore are already in different stages of
discussions or are being inked. Kolkata and the suburbs
took up warehousing space to the tune of 3.5 million
square feet last year (in 2018).
Some of the areas that are fast turning out to be the
hotbeds, include those along the National Highway 2
(Delhi Road) and National Highway 6 (Bombay Road).
As per sources, some 500 acres of land across villages
along the Delhi Road and Bombay Road areas are
under negotiations.
In fact, logistics-focused global PE funds and developers
such as Morgan Stanley, ESR (backed by Warburg
Pincus), Allcargo Logistics, Indospace, Embassy and
others are the ones puttingin big money. Read more
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Logistics firm Rivigo bags patent
Domestic logistics firm Rivigo said in a release it has
been granted patent rights by the US Patent and
Trademark Office for its driver relay model that uses
algorithms to determine the availability of drivers for
trucks, enabling drivers to return home each day.
The patented system uses algorithms to pick the right
driver for a duty based on multiple parameters including
equitable distribution of driving hours, rest hours and
transit hours. It also considers driver performance on
parameters like driving behaviour while deciding the
final match between truck and driver.
Tata Steel draws up plan to boost
competitiveness, lower logistics cost
"The immediate plan is to own eight to nine rail rakes.
This will be done in the next one year through Tata
Martrade International Logistics (TMILL), our
subsidiary," says Tata Steel CEO.
From owning rail rakes and laying slurry pipelines to
building greenfield ports, Tata Steel — the country’s
oldest steel producer — is leaving no stone unturned to
lower its logistics cost and make more competitively
priced products.
With a total investment of close to Rs 5,000 crore, the
company has drawn up a plan to lower its logistics cost
in a phased manner. “The immediate plan is to own
eight to nine rail rakes. This will be done in the next one
year through Tata Martrade International Logistics
(TMILL), our subsidiary,” T V Narendran, chief executive
officer and managing director, Tata Steel.
TMILL is a joint venture of Tata Steel, NYK Holding
(Europe) BV, and Germany-based IQ Martrade Holding
und Managementgesellschaft mbH. “It is not just about
lowering logistics cost, but also about assuring reliable
supplies,” said Narendran. Read more
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SSIM
MONEY & BANKING
IL&FS case: SEBI expands probe into role of
five credit rating agencies
During the review period, IL&FS Group had availed
rating services from Crisil Ltd, CARE Ratings, ICRA,
India Ratings (a Fitch group company) and Brickwork
- REUTERS
Three IL&FS entities enter into agreement
with secured lenders
The audit is aimed at identifying siphoning or misuse of
funds, fraudulent transactions, their modus operandi,
the quantum of the financial loss and fixing of
responsibility
Securities and Exchange Board of India (SEBI)
expanded its probe into the role of five credit rating
agencies after a forensic audit mandated by the new
board of crisis-ridden Infrastructure Leasing and
Financial Services (IL&FS) flagged serious lapses.
They also addressed their possible complicity with the
former top brass of the group in giving top ratings
despite weak financials. Read more
SEBI provides new format for compliance
report on corporate governance
Markets regulator SEBI came out with a new format for
compliance report on corporate governance to be
submitted by listed companies to stock exchanges.
In a circular, the regulator prescribed new format for
disclosures to be made on quarterly basis, annual basis
for the whole of financial year and within six months
from end of financial year that can be submitted along
with second quarter report. Read more
RBI imposes Rs 10 lakh penalty on Union
Bank of India
The Reserve Bank of India (RBI) has imposed a penalty
of Rs 10 lakh on Union Bank of India for non-compliance
with the directions on cybersecurity framework.
The penalty was imposed on July 9, 2019, according to
an RBI release.
“This action (imposition of penalty) is based on
deficiencies in regulatory compliance and is not
intended to pronounce upon the validity of any
transaction or agreement entered into by the bank with
its customers,” it added. Read more
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World Bank names State Bank of India’s
Anshula Kant as Chief Financial Officer
The World Bank Group appointed
Anshula Kant of the State Bank of
India (SBI) as the Chief Financial
Officer (CFO), according to a
statement released here.
“Kant is currently a managing
director (MD) at SBI and previously served as its CFO,”
the World Bank said. It has not yet announced when
Kant will start the new job.
Kant will report to World Bank President David Malpass
and was also named as a managing director at the
Washington-based development lender. Her work will
include oversight of financial reporting and risk
management as well as shell work with the World
Bank’s International Development Association.
Read more
SBI to remove IMPS charges on internet
banking from August 1
State Bank of India has decided to do away with the
charges on IMPS (Immediate Payment Service)
transactions on internet banking (INB)/ mobile banking
service (MBS) with effect from August 1, 2019.
IMPS provides a robust and real time fund transfer
facility, offering an instant, 24X7, interbank electronic
fund transfer service that could be accessed on multiple
channels like Mobile, Internet, ATM, SMS, Branch and
USSD (*99#). IMPS is an emphatic service which
allows transfer of funds instantly within banks across
India. Read more
No bank has power to employ bouncers to
recover loans
Union Minister Anurag Thakur
cites RBI guidelines on
procedure for appointment of
recovery agents by the banks
No bank has the power to
employ bouncers for forceful
recovery of loans from customers, Union Minister of
State for Finance Anurag Thakur said in the Lok Sabha
on Monday.
Singh also said there is a clear directive of the Reserve
Bank of India (RBI) to appoint recovery agents only
after proper police verification and fulfilling other
relevant formalities.
“No one has any power to appoint any musclemen or
bouncers for recovery of loans forcefully,” he said
during the Question Hour. Read more
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SSIM Business News Letter

MARKETING
P&G shifts from targeting ‘generic
demographics’ to ‘smart audiences’
The FMCG giant claims a focus on more precise
targeting of audiences such as first-time mums is
helping its advertising reach “the right people at the
right time, in the right place”.
Procter & Gamble (P&G) has credited a shift from
“generic demographics” to “smart audiences” with
helping improve the effectiveness of its marketing and
its innovation pipeline.
Speaking on a call today (30 July) following its full-year
results, CEO David Taylor said he is excited about its
“smart audience work”, which is helping the company
move from “wasteful” mass marketing to mass one-to-
one brand building. To do that, it is using the more than
1 billion consumer IDs it has to build audience segments
and then do “propensity marketing with people who
have similar characteristics”. Read more
“Since this is an era which is content heavy, we are also
focusing on a lot on content. Hence, from a visibility
point of view, we’ll be going digital heavy this fiscal,”
Taurani added. The company follows a set marketing
strategy of “keeping it simple”. Following the mantra of
‘show don’t tell’, the brand plans to launch experience
zones for its latest product to accommodate consumer's
need to explore the product before purchasing it. The
company claims that at present 60% of the ad spend is
diverted towards above-the-line (ATL) media and the
remaining 40% goes to below-the-line (BTL) mediums.
As per Taurani, it is difficult to bifurcate marketing spend
between digital and TV as the mediums are slowly
merging, hence, the company keeps a flexible budget
with respect to the two platforms. Moreover, he states
that for the company both platforms are important in its
own space. “We use TV as a platform to broaden our
reach while digital is used to amplify customer
engagement,” Taurani noted. Read more …

Coca-Cola highlights its innovation Heights of Branding: How a super model took
credentials in campaign for new Diet Coke Dettol to new heights as innerwear brand
flavours Rupa mounted its flag on Mount Everest
Coca-Cola is promoting new flavours of Diet Coke BE takes a look at the way brands like Rupa celebrated
including ‘Twisted Strawberry’ and ‘Exotic Mango’ in a its anniversary;while a model made Dettol popular
tongue-in-cheek campaign.
Rupa’s brief tryst with history
Diet Coke is launching a tongue-in-cheek campaign to
promote its new flavours – Diet Coke Twisted Strawberry
and Diet Coke Exotic Mango – in the UK.
The multimillion-pound campaign, created by McCann
Worldgroup Europe, launches today (17 June) and will
span TV, radio and outdoor.
It sees actress Tanya Reynolds struggle with an on-set
director as he instructs her to bring the new flavours to
life. In a series of clips, Reynolds attempts to fulfill the
director’s tricky brief including trying to mimic the ‘voice’
of a strawberry and show off her best ‘twisted’ moves.
Read more

With ‘keeping it simple’ strategy, Philips to

Business anniversaries are always a special time and
take social media route to market its latest
companies celebrate these age milestones in various
product
ways. Some brands roll out ad campaigns, while others
The company
launch special editions of products or packaging. Then
claims that at
there’s innerwear brand Rupa that put a twist on its
present 60% of the
celebration of fifty years of making knickers and
ad spend is diverted
knitwear. In what the company called “a first-ever brand
towards above-the-
exercise”, Rupa got a team of climbers to scale Mount
line media and the
Everest and unfurl the brand’s flag on the world’s roof.
remaining 40%
The hosiery industry player’s anniversary climb
goes to below-the-
coincided with the 100th birth anniversary of explorer
line mediums
and mountaineer Sir Edmund Hillary. However, Rupa’s
Dutch electronics company Philips will take the social decision to hitch a ride to the summit certainly won’t go
media route to promote its latest product under the down well with environmentalists fighting the forces
male grooming category, Philips OneBlade, Gulbahar commercialization to protect the world’s busiest peaks.
Taurani, president, personal health, Philips India Read more …
subcontinent told ETBE.

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 Issue No. : 29
SSIM
Redefining life insurance marketing, Max Life
Insurance's launches virtual reality initiative
Customer engagement to be leveraged through walk-
ins across 200+ offices of Max Life
Pioneering the use of virtual reality (VR) for experiential
marketing in the Indian life insurance industry, Max Life
Insurance Co. Ltd. is organising a unique walk-in
experience across its 200+ offices, that’ll invite
customers to experience a virtual reality ride through
the different stages of life from childhood to marriage to
parenthood to retirement. Coinciding with Max Life
third ‘Protection Day’ (three months since Company
announced that it will dedicate the 6th day of every
calendar month as 'Protection Day' towards driving
awareness regarding financial protection), the initiative
will help establish how life keeps evolving across
various stages, making the need for an evolving
protection cover equally important.“Our experiential
virtual reality (VR) activity will take customers through a
fun ‘Journey of Life’ - a roller coaster with lots of twists
and turns helping them realize the need to plan upfront
MARKETS
MACD shows TCS, HCL Tech, Mindtree,
Suzlon among 25 stocks readying to rally
The MACD is known for signalling trend reversals in
traded securities or indices. The ongoing selloff in the
equity market has been so intense that Nifty has ended
in the red in seven out of past eight sessions. The index
has entered the oversold zone, having lost 500 points in
eight sessions on 30 July. The situation is worse in the
broader market. Despite this, at least 25 stocks on NSE
look set to rebound, as suggested by moving average
convergence divergence or MACD. The momentum
indicator signalled a bullish crossover on these
counters, hinting at possible upsides. These stocks
have been witnessing strong trading volumes of late,
lending credence to the emerging trend.
DHFL defaults on Rs 8.07 cr bond repayments
The company on July 23, 2019 defaulted on '8.84 per
cent, secured non-convertible debenture (NCD) for 3
years' with a total default amount of Rs 8.07 crore. The
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for every life stage be it childhood or marriage,
parenthood or retirement. Through the means of this
initiative, we aim to help our customers become
financially smarter and strengthen our commitment
towards building a financially protected nation where
#YouAreTheDifference," said Aalok Bhan, director and
chief marketing officer, Max Life. Read more…
Burger King CMO on creativity: We are not in
the pursuit of random ideas
The recipient of 94 Cannes Lions in four years, Burger
King global CMO Fernando Machado is “100% focused
on the idea”, as long as it links back to the brand and
business strategy.
Burger King has cultivated a formidable reputation for
creativity. Over the past four years, the fast food chain
has channelled its quirky, counter-intuitive personality
into 94 Cannes Lions, including four Grand Prixs and
the accolade of 2017 creative marketer of the year for
global CMO, Fernando Machado.
Campaigns include ‘McWhopper’, which started in
2015 as an open letter in the New York Times proposing
a truce with arch rival McDonald’s to mark Peace Day.
The idea was to join forces on the McWhopper – a
combination of the Whopper and the Big Mac.
Read more..
company is undergoing substantial financial stress
since the second half of the last financial year. it was
taking all necessary steps to repay the debt within 7
days of cure period, as prescribed under the respective
trust deeds with regard to NCDs. The company which
sits on a debt of Rs 90,000 crore has reached an inter-
creditor agreement with its lenders and a debt-recast
programme is likely to be finalised by the end of this
month.
In addition, the company has been selling-off its non-
core assets to meet financial obligations. Read more
As Modi 2.0 hits half-century mark, D-Street
counts Rs 12,00,000 crore loss
Investors expecting a shift in market momentum
following the second mandate for Modi government in
the recent Lok Sabha elections are in for disappointment.
Investor sentiments soured in the first 50 days of Modi
2.0, with stock investors losing nearly Rs 12 lakh crore
worth of wealth within a short period .Market value of
10
 Issue No. : 29
SSIM Business News Letter

the BSE-listed stocks have plunged by Rs 11.70 lakh China kicks off new shanghai tech board as
crore, or 7.5 per cent, to Rs 144 lakh crore from the it tests new ways to improve volatile stock
recent high of Rs 156 lakh crore hit on June 3. Modi market
assumed office on May 30. Government has made sure China is trying again to boost the credibility of its volatile
it does not deviate from fiscal prudence, a few of Budget stock market.
proposals such as the surcharge in the high income-tax
On Monday, China launched a new Nasdaq-style tech
brackets and the proposal to increase minimum public
board — the Science and Technology Innovation Board,
float of listed companies to 35 per cent from 25 per cent
or “STAR Market” — on which 25 companies were
have been seen as negatives by market participants.
listed, as the country attempts to address investor
Read more
concerns like market volatility and lack of governance.
Auto component industry fears loss of China boasts the world’s second-largest equity market,
10 lakh jobs due to prolonged slowdown just behind the U.S. More foreign capital is expected to
Considering the auto component industry grows on the flow into mainland Chinese stocks with their inclusion in
back of the vehicle industry, a current 15-20 per cent major investment indexes.
cut in vehicle production has led to a crisis-like situation,
Some of the key characteristics of the board are-
he said, adding “if the trend continues, an estimated 10
lakh people could be laid off”. The process of layoffs • Allowing some companies of a certain size to list
has already started in some places, Venkataramani before they have turned a profit
said.
• Making it easier for a company to go public by
Under the GST regime, already around 70 per cent of relying on a registration, rather than waiting for
auto components have come under the 18 per cent regulatory approval — 57 companies went public on
GST slab. However, around 30 per cent remain in the the Shanghai A-share market last year, versus 143
28 per cent bracket. Stable EV policy “The industry on Hong Kong’s main board, according PWC
needs urgent government intervention... We strongly
• Requiring individual investors to have assets of at
recommend that the government bring 18 per cent GST
least 500,000 yuan($72,655) that can be invested,
rate across the entire auto and auto component sector,”
and two years of securities trading experience.
he added. Commenting on the need for a stable policy
for electric mobility, Venkataramani said any further
Fund raising via IPOs in first half of 2019 at
changes in targets for rollout of EVs would increase the
four-year low
country’s import bill and damage the current components
Volatile equity market saw the fund mobilisation, during
manufacturing ecosystem. Read more
the first half of the calendar year 2019 (H1CY19) via the
initial public offer (IPO) route, hit a four year low.
Deutsche Bank suffers $3.5 billion quarterly
Analysts attribute the tepid H1CY19 to the overall
loss
market sentiment, especially the mid-and small-cap
Deutsche Bank melt down started, it is expected that
segment that underperformed the frontline bench marks
we have entered the eminent crisis of 2020 in 2019. It is
.In H1CY19, eight companies, including the recent
expected to hit globally starting with finance sector and
offering by IndiaMART Intermesh, raised a cumulative
gradually impact manufacturing and service industry.
Rs 5,509 crore through IPOs. This is the lowest amount
The impending crisis will lead to job freeze and job cuts.
raised in the last four years.
China, India, US, Canada and EU are likely to hit the
most with this Tornado. Market risk will appear as
significant risk with investment risk. Finance and
Banking will be first hit. All Indian bank will get impact.
With this significant change many of our business line
can get impacted. Deutsche, Germany's largest lender,
is considered one of the most important banks for the
global financial system, along with US heavyweights
JPMorgan Chase, Bank of America and Citigroup. But
Deutsche has been plagued by losses and scandal,
prompting it to embark on one of the biggest overhauls
to an investment bank since the aftermath of the
financial crisis. Read more

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 Issue No. : 29
SSIM
Mergers & Acquisitions
Airtel completes Tata Tele merger
Telecom major Bharti Airtel has said that the scheme of
arrangement for the merger between the company and
Tata Teleservices (TTSL) has become effective from
Monday, 1 July. Hence, all of TTSL’s assets — including
its customers — come under the Delhi-based telecom
services provider. As part of the merger, Airtel will
absorb TTSL’s consumer mobile businesses operations
in 19 telecom circles — 17 under TTSL and two under
Tata Teleservices (Maharashtra) (TTML).Airtel has also
agreed to take over a small portion of the unpaid
spectrum liability of Tata Teleservices. The merger will
bolster Airtel’s spectrum pool with additional 178.5 MHz
spectrum in the 1800, 2100 and 850 MHz bands, widely
used for 4G.
MTNL to be a BSNL subsidiary
Telecom Minister okays revival plan for telecom PSUs.
Loss-making State-owned telecom carrier Mahanagar
Telephone Nigam Ltd (MTNL) will be merged with ailing
Bharat Sanchar Nigam Ltd (BSNL) as part of a revival
plan approved by the Telecom Ministry for the two
companies. MTNL would be converted into a subsidiary
of BSNL following the merger. The merger would be
conducted after sorting out issues (such as human
resources). A joint committee will be put in place to
oversee the entire process over the next 18 months,
according to a memo approved by Telecom Minister
Ravi Shankar Prasad. Read more…
For VW and Ford, the challenge is to keep the
partnership going strong
It’s never easy when two big brands come together and
this is where leadership plays a huge role
Ford and Volkswagen have finally made official the
finer details of their alliance. The duo will now work
jointly on electric mobility, autonomous driving as well
as manufacture of pick-ups in the commercial vehicle
space.
From Ford’s point of view, the next big announcement
could be the tie-up with Mahindra & Mahindra, which is
intended to reboot its Indian innings as well as cater to
other emerging markets in the ASEAN region as well as
South Africa and Latin America.
As in the case of VW, e-mobility will be a part of the
Ford-Mahindra alliance, which is keeping in line with
what India and the rest of the world are pursuing with a
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vengeance. It remains to be seen if the tie-up will also
lead to Ford’s existing assets transferred to the new
joint venture as has been reported in a section of the
press. Read more
Govt. approves merger of NIMH with ICMR-
NIOH
The merger/amalgamation of NIMH with NIOH will
prove beneficial to both the institutes in terms of
enhanced expertise in the field of occupational health.
The government on Wednesday gave approval to
dissolve National Institute of Miners' Health (NIMH) and
merge it with ICMR-National Institute of Occupational
Health. The decision was taken at the Cabinet meeting,
chaired by Prime Minister Narendra Modi.
"The Cabinet has approved to dissolve National Institute
of Miners' Health (NIMH), an autonomous institute
under Ministry of Mines (MoM) and merge/ amalgamate
with ICMR-National Institute of Occupational Health
(NIOH), Ahmedabad, Ministry of Health and Family
Welfare with all assets and liabilities and absorb all the
employees of NIMH in NIOH in similar post/pay scale
as the case may be and their pay be protected," as per
an official tweet. Read more
Snapdeal, ShopClues unlikely to go through
with deal
Even as Snapdeal is about to conclude its due diligence
for the potential acquisition of smaller rival ShopClues,
it looks highly unlikely that the all-stock deal will go
through, said sources privy to the latest developments.
The deal, which was initiated by Nexus Venture
Partners, an investor in both the e-commerce firms,
may not add much value to Snapdeal for multiple
reasons, sources involved in the negotiations said.
To start with, Snapdeal already delivers 8-10 times
ShopClues’ order volumes. Snapdeal’s customer base
12
 Issue No. : 29
SSIM
also overlaps with ShopClues’, as both target shoppers
in Tier-II,III and IV locations with value-priced product
assortment from small sellers.
To complicate matters, a third of ShopClues’ shipments
are returned by the customers. Read more
Aditya Birla Fashion buys Jaypore for Rs. 110
crore
In what could be the onset of mergers and acquisitions
in the fashion retail segment in India, Aditya Birla
Fashion and Retail Limited (ABFRL) has fully acquired
online ethnic brand Jaypore for approximately Rs. 110
crore. ABFRL told the stock exchanges today that they
would be closing the deal in the next 30-45 days.
The deal marks ABFRL’s entry into the approximately
$18-billion ethnic wear market in India. The Kumar
Mangalam Birla-promoted company has so far been
focussed on western wear, especially men, with brands
such as Louis Phillipe, Peter England, Van Heusen and
Allen Solly with each clocking over Rs. 1,000 crore in
sales. Besides, the company has exclusive retail rights
for several global brands including Forever21 and Ted
Baker. Read more
Reliance Brands completes acquisition of
Hamleys
The acquisition gives the Indian acquirer complete
control of Hamleys retail operations spread over 167
stores across 18 countries.
Reliance Brands, a subsidiary of Reliance Industries,
has completed the acquisition of the iconic British toy
retailer Hamleys. "We hereby inform that Reliance
Brands Limited, subsidiary of Reliance Industries
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Limited, has completed acquisition of 100 per cent
stake of HGHL through a special purpose vehicle
company set up in United Kingdom for cash
consideration of GBP 67.96 million," Reliance Industries
said in a regulatory filing on Thursday.
On May 9, Reliance Industries had announced the
signing of a definitive agreement for Reliance Brands to
acquire 100 per cent share of Hamleys Global Holdings
Ltd, the owner of the Hamleys brand from Chinese
fashion wear firm C Banner International. The deal
value when the agreement was signed was around Rs
620 crore in Indian currency. Read more
HCL completes acquisition of IBM products
HCL TechnologiesNSE -0.98 % said the company last
month closed acquisition of 7 IBM products last month
for security, marketing, commerce, and digital solutions.
In December, the company announced its plans to
acquire IP assets of technology major IBM including its
email Lotus notes for $1.8 billion.
As part of the closure of this deal, HCL tech takes full
ownership of the research and development, sales,
marketing, delivery, and support for AppScan, BigFix,
Commerce, Connections, Digital Experience (Portal
and Content Manager), Notes Domino, and Unica, said
the company in a press release.
HCL Tech has also spun out a separate business unit to
focus on products.
“HCL is formally introducing HCL Software, a new
division that will operate this enterprise software product
business and meet customer demand,” said the
company. Read more
13
 Issue No. : 29
SSIM
People in the News
I've failed, sorry to let you all down:
VG Siddhartha's last letter found
Cafe Coffee Day Group
founder V.G. Siddhartha
allegedly committed
suicide on 30 July, night.
Here are his last words to
the board of directors and
shareholders. Read more
Wipro founder Azim Premji to retire by end-
July, Neemuchwala is new MD
Software services exporter Wipro Ltd said on Thursday
founder Azim H Premji would retire as executive
chairman and managing director (MD) by the end of
July and named Chief Executive Officer Abidali Z
Neemuchwala as its new MD. Azim Premji, India's
second richest man and well-known philanthropist, has
led Wipro's evolution from a vegetable oil company
founded in 1946 into a global IT firm.
"It has been a long and satisfying journey for me. As I
investigate the future, I plan to devote more time to
focus on our philanthropic activities," Azim Premji, who
had been at the helm for more than 50 years, said in a
statement. Read more
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Viral Acharya ends his RBI stint with a sense
of unfinished business
Viral Acharya will be ending his stint as deputy governor
at the Reserve Bank of India with a sense of unfinished
business, particularly involving the central bank’s
autonomy and the health of lenders.
References to these are
littered across half of
Acharya’s 14 speeches as a
central banker, where he
uses the word “capital” more
than 150 times to drive home
his point: against the
government’s attempts to dip into the RBI’s capital
reserves, and to urge Prime Minister Narendra Modi to
hasten recapitalization of India’s struggling state-run
lenders. Read more
Boris Johnson is Britain’s next PM
Boris Johnson, the ebullient Brexiteer who has promised
to lead Britain out of the European Union with or without
a deal by Halloween, will replace Theresa May as Prime
Minister after winning the leadership of the Conservative
Party on Tuesday.
His victory catapults the United Kingdom towards a
Brexit showdown with the EU and towards a
constitutional crisis at home, as British lawmakers have
vowed to bring down any government that tries to leave
the bloc without a divorce deal.
Johnson, the face of the 2016 Brexit referendum, won
the votes of 92,153 members of the Conservative party,
to 46,656 for his rival, Foreign Secretary Jeremy Hunt.
Read more
14
 Issue No. : 29
SSIM Business News Letter

Emerging Entrepreneurs
Entrepreneur Dr Meghana Dikshit Has
Success Tips For Business Newbies
Dr Meghana Dikshit’s workshop will help you remove
the obstacles in the way of
fulfilling your dreams. As
teenagers, most of us
envisaged the ideal lives for
ourselves. While a fortunate
few went on to fulfil their
dreams, for most, reality set
in. But deep inside, do you
still wonder how, why, and
why not? In her workshop,
‘Ultimate Success Program’, renowned success coach
and entrepreneur Dr Meghana Dikshit shows simple
and effective ways in which we can dream big and go
on to achieve them. To date, Dr Dikshit has successfully
transformed the lives of over 37,000 people in five
countries. Read more.
Electric vehicles a huge opportunity for India:
Niti Aayog
Amitabh Kant, CEO,
NITI Aayog. The
electric vehicle
segment is a big
opportunity for Indian
manufactures and
they should look at not
only producing such models for domestic market but
also exports, Niti Aayog Chief Executive Officer Amitabh
Kant said on Wednesday. Speaking at the inaugural
session of the ‘Entrepreneur 2019’, Kant also
emphasised on the road map to make India a $
10-trillion economy by 2030. “Electric vehicles are a
sunrise opportunity as India has over 72 per cent two-
wheelers; our endeavour should be to make these
electric, and also manufacture EVs for the world, in
India,” Kant said. Read more
India’s start-ups find opening in space
All these start-ups
have had a helping
hand from ISRO,
which sees these new
companies as
complementary to
itself, a completion of
the ecosystem.
The words ‘Agnibaan’
and ‘Chetak’ may not ring a bell in most minds today,
but they will in the near future. They are small rockets
that will be produced and launched by Indian start-ups.
Read more
IIT Hyderabad-incubated PURE EV raises VC
funding from pharma entrepreneur
An Electric vehicles
PURE EVat IIT-H
Kandi in Sangareddy
d i s t r i c t M o h d
ArifMohdArif
Indian Institute of
T e c h n o l o g y
Hyderabad-incubated
start-up PURE EV has
raised venture capital funding from Hyderabad-based
pharmaceuticals entrepreneur VC Nannapaneni, in his
personal capacity. While the start-up is valued at $35
million, the amount infused was not disclosed.
PURE EV has also been developing a prototype of
HVDC electric truck/bus lithium battery modules and
intends to showcase them in 2020 to potential
collaborators. It is now looking to ramp up its EV
manufacturing capacity to 2,000 units per month by
October. Read More
Taking a LEAP in supply chain management
Sunu Mathew had spent nearly 15 years working in
multinational companies, mostly in India. It was while
he was attending a management development
programme at INSEAD, France, that convinced him to
turn into an entrepreneur. He says three of his
professors told him that his outlook to work was more
like an employer’s than an employee’s. He was also
looking to start a business where the entry barriers
were high and one that was knowledge based.
Read more
A new philosophy of social media marketing
Mumbai-based start-up helps businesses find their
identity online
Fostering entrepreneurship may not be the purpose of
a philosophy department, nor is starting a business the
goal of a philosophy student. But by studying Socrates
and Descartes, Armand Poonawala realised how the
unique aspect of their work could help frame his own
thinking. Read more

SOURCE: Business Line, Business Standard & Economc Times

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