2 COMPANIES MUMBAI | TUESDAY, 12 JANUARY 2021

> Vedanta
STOCKS Promoters make open
> Avenue Supermarts
Reports net profit of ~447
> KEC International
Secures orders worth
> Sadbhav Engineering
Receives letter of
> Reliance Infrastructure
Completes entire 74%
IN THE NEWS offer for 372 million crore in Q3FY21; ~1,024 crore across acceptance from GMRC stake sale in Parbati
shares at ~160 apiece up 16 per cent YoY various segments for Metro Rail project Koldam Transmission
~179.1 CLOSE ~2,979.75 CLOSE ~364.6 CLOSE ~62.0 CLOSE ~30.8 CLOSE
q1.6% DOWN* p0.4% UP* p0.6% UP* q0.1% DOWN* p4.9% UP*
*OVER PREVIOUS CLOSE

>

IN BRIEF
Bombay High Court restrains
Sebamed ads across media
Doubtful of sustainability once Over 71,700
tractors
sold in Dec;
The Bombay High Court (HC) on Monday
granted an ad-interim ex-parte injunction
to Hindustan Unilever (HUL) in a suit filed by
the company against the advertisements of
Sebamed India that claimed its cleansing
pent-up demand fizzles: Maruti
ARINDAM MAJUMDER 2020 has been 3.6 per cent. Clearly the
up 41% YoY
OVERALL SALES*
bar had the perfect pH value for sensitive New Delhi, 11 January growth rate has slowed over the past (in units)
skin. The order restrains Sebamed and its decade, more so over the past five years. 2019 2020

I
affiliates from broadcasting and ndia’s largest carmaker Maruti Though car sales are closely related to 71,740 160,000
communicating to the public the Suzuki India (MSIL) has expressed gross domestic product (GDP) growth
57,488 89,530
commercials, newspaper advertisements, doubt over long-term sustainability rate numbers, industry insiders say PV 120,000
hoardings, and digital ads in any language. The next hearing in once pent-up demand fizzles, leading sales have suffered despite a decent 59,367 80,000
the matter will be held on January 14. When contacted, Sebamed to uncertainty over the future course of GDP growth rate.
India’s country head Shashi Ranjan said that it had not received the automobile industry. December marked the best growth 40,000
the court order yet. "Once we receive the court order, we will Having cornered 50 per cent share in retail sales of PVs, as new launches, 60,352 50,803
0
comply with it as a responsible organisation. We will also file our of India’s car market, MSIL is one of the cheaper finance, and pre-buying to Jan ‘20 Dec ‘20
response in the matter, " Ranjan said. BS REPORTER biggest employers in the country. escape the January price increases
Record growth in monthly sales may helped boost demand. The segment 9.46 41.21
not be an actual barometer of industry also recorded the second-best monthly Total sales Dec ‘20
UK court denies Domestic air traffic health, given long-term sustenance of total this financial year. % YoY growth
*Including exports
release of funds for down 45% to 7.1 mn this growth remains questionable, cau-
tioned the carmaker.
PVs comprise cars, sport utility
vehicles, and vans. PV sales grew 24 per
Source: Tractor Manufacturers
Association
Mallya’s legal fee in December: ICRA Fearing demand may evaporate, the cent in December to 271,249 units,
A UK court hearing an urgent India's domestic traffic industry has requested the government GROWTH OF CAR SALES HAS WORD OF CAUTION against 218,775 units recorded in the T E NARASIMHAN
application on Monday refused declined around 45 per cent to to defer the implementation of fuel effi- same month last year, according to the
to sanction the release of about 7.1 million passengers in ciency norms and the second stage of
BEEN SLOWING DOWN | Record growth in monthly sales
data sourced from 86 per cent of the
Chennai, 11 January

substantial sums held with the
Court Funds Office as part of
bankruptcy proceedings being
pursued against liquor tycoon
Vijay Mallya by a consortium of
Indian banks. Judge Sebastian
Prentis, who presided over a
remote hearing at the
Insolvency and Companies
Court of the HC in London,
concluded that Mallya had
failed to provide the “basic
information” required for such
a validation order. PTI
December last year over
December 2019, even as
passenger traffic was up 12 per
cent sequentially over
November 2020, ratings agency
Icra said in a release. The
capacity deployment in
December 2020 at around 67
per cent (vis-à-vis December
2019) is a significant increase
over the 52 per cent capacity
deployed in October 2020 and
59 per cent in November, Icra
said in a release.
emission norms to April 2024, in a bid
to keep the cost of acquisition stable.
“The month-on-month growth
numbers are good, but there is a high
element of pent-up demand in that. It
is giving a misleading picture of the
overall demand,” said Shashank
Srivastava, executive director, MSIL.
On the reasons behind the fall in
compound annual growth rate (CAGR),
said Srivastava, was the high acquisition
costs in terms of high vehicle pricing
due to high taxes, higher costs of raw
PTI material, higher production costs, and
insurance and registration costs.
He told Business Standard that the
manufacturers have represented these
Period considered is April-December
In million Source: Siam
rate average fuel efficiency (CAFE)
norms with the officials concerned.
The industry data shows that while
the CAGR of passenger vehicle (PV)
may not be an actual barometer of
industry health, cautioned the
carmaker
| Pent-up demand is giving a
misleading picture of the overall
demand, firm says
| High acquisition costs in terms of
high vehicle pricing due to high
taxes, higher costs of raw material,
higher production costs, etc led to
fall in CAGR, says company
1.3 per cent for the five-year period
between 2014-15 (FY15) and 2019-20.
Between 2009-10 and FY15, sales rose
5.9 per cent.
regional transport offices, shared by the Tractor sales rose by around
Federation of Automobile Dealers 41 per cent in December
Association. The auto industry has now 2020 to 71,740 units, as com-
made a representation to the govern- pared to 50,803 in
ment to defer the implementation of December 2019. However,
CAFE-2 regulations and Bharat Stage month-on-month, the sales
(BS)-VI stage II norms to April 2024. As dropped for the second
of now, the CAFE-2 norms that aim to month in a row, after report-
make cars more fuel efficient are set to ing continued growth since
come into effect in 2022, and BS-VI stage April. The demand was driv-
II norms are set to come into force en by reasons such as higher
beginning April 2023. rabi acreage, government's
Srivastava said this is because the support in procurement,
norms will result in price hike, leading and rural development
to increase in acquisition cost. The cost schemes, said industry
of acquisition going up impacts more players.
this year, as the worsening economic According to Tractor

Amazon urges Sebi issues to the government and discussed

high goods and services tax rates and
deferring the implementation of corpo-
sales stood at 12.9 per cent for the five-
year period between March 2005 and
March 2010, it fell sharply to a CAGR of
In fact, the CAGR for PV sales
between 2000 and 2010 stood at 10.3
per cent and that between 2010 and
condition of the country has forced first-
time buyers to switch to the cheaper
entry-level segment.
Manufacturers
Association’s (TMA’s) data,
tractor makers sold 71,740

to suspend review
units (including 10,491 via
exports) in December 2020,

of Future-RIL deal Vehicle sales rise 24% in December: FADA

PEERZADA ABRAR
Bengaluru, 11 January
E-commerce giant Amazon
has again sent a letter to the
Securities and Exchange
Board of India (Sebi), inform-
ing the markets regulator of
the formation of the arbitra-
tion tribunal at the Singapore
International Arbitration
Centre (SIAC), while urging it
to suspend the review of
Future Group’s $3.4-billion
deal with Mukesh Ambani-
owned Reliance Industries
(RIL), revealed sources.
The letter addressed to Sebi
Chairman Ajay Tyagi said
since the emergency arbitrator
of SIAC had passed on order
restricting the deal between
Future Retail (FRL) and RIL,
and the high court (HC) had
accepted the justification of
the emergency award (EA),
any decision taken would have
to be in cognisance of the
same, said sources.
“In view of the directions
in the operative part of the
interim award and the above,
we request your good offices
to take action by inter alia: (a)
suspending review of the
impugned transaction as well
Air India’s all-women pilot
team scripts history; flies
as the scheme involving the
impugned transaction, and
not granting any no-objection
in relation to the same; and (b)
directing the Indian stock
exchanges to not issue any no
objection/approval letter to
FRL,” said the letter, adding,
“In case you require any
further information/doc-
uments, we will be pleased to
submit the same. This letter is
issued without prejudice to
our rights.”
The letter, dated January 5,
informed Sebi that the SIAC
had constituted the arbitral tri-
bunal in the arbitration pro-
ceedings initiated by Amazon
against inter alia FRL, Kishore
Biyani and Rakesh Biyani. A
copy of the communication
received from the SIAC, dated
January 5, had also been
enclosed with this letter.
as compared to 50,803 units
(7,997 via exports) in
December 2019. In
November 2020, total trac-
PRESS TRUST OF INDIA sales fell 52.75 per cent to wheeler segment, and a fear tor sales were estimated to
New Delhi, 11 January
“A GOOD CROP SEASON, BETTER 27,715 units last month, from of price increase in the month be around 89,530 units
OFFERS IN THE TWO-WHEELER 58,651 units in December 2019. of January kept the demand (7,200 via exports).
Automobile dealers’ body SEGMENT, NEW LAUNCHES... AND Total sales across cate- going,” he added. The Federation of
Federation of Automobile gories increased 11.01 per cent Supply-side issues, Automobile Dealers
Dealers Associations (FADA) A FEAR OF PRICE INCREASE IN JAN to 1,844,143 units last month, however, continued to impact Associations’s (FADA’s)
on Monday said passenger KEPT THE DEMAND GOING” compared to 1,661,245 units in the PV vertical for the second numbers showed a 35.49 per
vehicle (PV) retail sales in VINKESH GULATI December 2019. Commenting straight month, thus stretch- cent jump in tractor retail
December witnessed a year- on December retail sales, ing waiting periods as high as sales in December 2020,
on-year (YoY) increase of 23.99 President, FADA FADA President Vinkesh eight months for some select which rose to 69,105 units,
per cent to 271,249 units on Gulati said the automobile models, Gulati said. from 51,004 units in 2019.
the back of pent-up demand (RTOs), PV sales stood at December 2019. registrations grew for the first The commercial vehicle “Tractors continue to
continuing from the festive 218,775 units in Commercial vehicle sales, time during the current finan- segment continues to see outshine supply for six
season. December 2019. however, slipped 13.52 per cial year in December. demand pressure as axle load straight months, confirm-
According to FADA, which Two-wheeler sales cent to 51,454 units in “A good crop season, better norms, increased fuel and ing that Bharat carries on to
collected vehicle registration increased 11.88 per cent to December 2020, as against offers in the two-wheeler seg- vehicle cost, and higher lead India’s economic
data from 1,270 out of the 1,477 1,424,620 units last month, as 59,497 units a year ago. ment, new launches — both freight rates continue to recovery.” said FADA
regional transport offices compared to 1,273,318 units in Similarly, three-wheeler in PVs as well as in the two- impact the vertical, he noted. President Vinkesh Gulati. ‘
AD VOLUMES GROW 10% IN 2020 ADVERTISING
RECOVERS IN H2
TOP ADVERTISERS
DRIVE GROWTH
TOP 4 ADVERTISERS RETAIN
THEIR POSITIONS
Calendar year 2020 was disrupted (ad volumes in mn seconds) (ad volumes in mn seconds) (ad volumes in mn seconds)
by the Covid-19 pandemic and n 2019 n 2020 ](% chg in brackets) ](% chg in brackets) n 2019 n 2020 ](% chg in brackets)
](12.0) ](10.37) ](30.0) ](37.0)
the subsequent lockdown. Yet, a [(-18) [(-12.0) [(-3.0)
look at the full-year advertising 777 765 859 226 294
volume numbers shared by the 639 694 766 95 129 40 35 36 35
Broadcast Audience Research 2019 2020
Council of India (BARC) shows that Jan-Jun Jul-Dec HUL Reckitt Benckiser P&G ITC
top advertisers increased their
visibility significantly during the
period. Growth in ad volumes for
2020 was up 10 per cent from a
TOP BRANDS: DETTOL STEALS SHOW MOVIE CHANNELS ATTRACT ADs
(ad volumes in mn seconds) (ad volumes in mn seconds)
year ago, with the recovery being
sharp in the second half of the 2019 2020 % chg 2019 2020 % chg
ILLUSTRATION BY BINAY SINHA
year when the Unlock phase Dettol soap 8 17 118 News 479 475 -1
began. Companies such as Hindustan Unilever (HUL), Reckitt Benckiser (RB), Dettol antiseptic liquid 7 16 136 GEC 382 377 -1
Procter & Gamble and ITC retained their position as the country's top four Lizol 10 14 32 Movies 322 350 9
advertisers during the year, though HUL and RB increased their ad volumes Colgate dental cream 12 13 10 Music 193 154 -20
sharply by 30 per cent and 37 per cent each. COMPILED BY VIVEAT SUSAN PINTO Ministry of Health & Family Welfare 8 13 66 Kids 50 47 -6

over world’s longest air route

Pfizer compiling data to answer DCGI queries on vaccine
Drug major clarifies it could not present itself before the SEC because of short notice and time zone issues
SOHINI DAS
Mumbai, 11 January
After a three-time no-show before
the expert panel on vaccines in
India, US major Pfizer, which was
one of the first firms to apply for a
restricted emergency use approval
here, says it is compiling responses
to queries raised by the Indian
regulator.
The company spokesperson
clarified that the firm is committed
to engaging with the Government
of India.
A Pfizer spokesperson
elaborated: “Pfizer sought an
opportunity to participate in the
Subject Expert Committee (SEC)
consultations towards an
Creating history, Air India’s longest flight from San Francisco emergency use authorisation for
to Bengaluru with an all- woman crew landed in the city on our Covid-19 vaccine. However, the
Monday. As the flight (AI-176) landed and the crew members company representatives have
walked to the airport lounge, they were met with a huge been unable to participate in
crowd of people waiting to receive them with elation and joy previous meetings because of
for setting a new record of an all-woman crew flying the extremely short notices of a few
longest distance over the North Pole PHOTO: PTI hours or less and time-zone
limitations, given that the
General of India (DCGI) VG Somani the SEC to meet next.
on the matter of drugs and vaccines Pfizer-BioNTech’s mRNA
met in mid-December to review the vaccine, which has been rolled out
applications of Serum Institute of in the US and UK already, required
India (SII), Bharat Biotech a minus 70 degree celsius cold
International (BBIL), and Pfizer. chain to remain stable.
Pfizer did not turn up for the The company has worked out
December 9 meeting. Thereafter, cold chain solutions for the same
the SEC met on December 30 and (including thermal boxes with geo-
then on January 1 to discuss tagging) and has also indicated that
matters with the it may offer a price
vaccine makers. The lower than other
US major had not The company has markets for India. In
participated in these worked out cold US, the vaccine costs
meetings as well. chain solutions and $39 for two doses.
On January 1, the indicated that it The Centre, too,
SEC recommended may offer a price has indicated that it is
approval to Serum lower than other engaging with the US
Institute’s vaccine and markets for India. major. Cold chain
participating team is primarily available for use by the sought more details In US, the vaccine infrastructure,
based out of the United States." government in the country,” the from Bharat Biotech, costs $39 for owned by the
The company added that in the spokesperson said, adding that it is which the firm two doses Department of
meantime, it is in the process of committed to working with the presented on January Agricultural Research
compiling responses to queries Indian government to ensure 2. The DCGI approved and Education,
raised by the regulator on the data equitable access to its Covid19 both the vaccines on January 3 would be sufficient for handling
provided. “We remain committed vaccine. after SEC recommendations. the temperature requirements for
to engaging with the Government The Covid-19 SEC that is A source in the know indicated Pfizer vaccine at some
of India to make this vaccine advising the Drugs Controller that no date has been fixed yet for geographical locations.