NEW DELHI, MuMBAI, BENGALuRu, kOLkATA, CHENNAI, AHMEDABAD, HyDERABAD, CHANDIGARH*, puNE* VOL. 16 NO.

257

Thursday, October 27, 2022

livemint.com

mint primer QUICK EDIT

Why air quality A pitch for

numbers are all divine aid
Hindu deities on Indian cur-
over the place rency notes? Two days after
Diwali, Delhi’s chief minister
Arvind Kejriwal suggested as
By Tanay Sukumar much, urging India’s govern-
If you logged on to social media to check the air quality index in your ment to consider images of Lord
city the morning after Diwali, chances are you saw multiple numbers Ganesh and Goddess Lakshmi
floating around for the same time and location. Are all of them on the flip side of notes that cur-
correct? Mint explains how to interpret them: rently bear Mahatma Gandhi’s
likeness. “We have to make a lot
Air gauge of effort to improve the eco-
Multiple agencies record pollutant levels, but they all report the final AQI
nomic situation of our country,”
differently. They go about a similar method as shown below, but they usually Kejriwal said, “Our efforts bear
vary in how they compute the sub-indices. fruit when we have the bless-
Illustrating AQI calculation with four pollutants
ings of gods and goddesses.” Pin
this proposal on the competi-
Step 1: Step 2:
Find pollutant level Compute pollutant Step 3: tive politics of religion that has
(in µg/m³) sub-index Report AQI gained traction in an officially
PM10 58 PM2.5 and PM10 levels are the 58 secular country. Yet, a currency
same, but 58 µg/m³ of PM2.5 is isn’t, say, a calendar. Apart from
PM2.5 58 much more harmful. So each 97 Worst value.
pollutant's number has to be
the conceptual conundrum of
NO2 22 28 So AQI = 97 why divinity should be associ-
adjusted (the new figure is the
SO2 5 "sub-index") so that they are on a 6 ated with Reserve Bank of India
common scale and their impact
can be compared.
liabilities (debt, that is), the
Source: Mint research demand overlooks a practical
puzzle. In a country where a
What is the air quality What is the official AQI snack wrapped in a newspaper
1 index (AQI)?
It measures how safe the air
2 number?
The widely-used National Air
with an ad featuring a deity has
been taken as disrespect, would
around you is for breathing. Quality Index (NAQI) given by the cash have to be handled with
Organizations that report AQI Central Pollution Control Board is devout decorum? What’ll hap-
measure the density of various a 24-hour average. So, if the NAQI pen to the disposal of soiled
pollutants in the air (such as on the morning after Diwali notes? Using a polymer instead
PM2.5, PM10, nitrogen dioxide, sounds too good to be true, wait of paper could grant them dura-
ozone, etc) at different monitoring for a few hours for a reality check.
bility. But then, a note-material
stations, in micrograms per cubic This year, Delhi’s AQI improved
metre. But there’s a catch. A throughout the day after Diwali. switch might be worth a try-out
particular amount of one pollutant That’s because the city had better anyway. We needn’t give our
may not be as harmful as the same air (real-time AQI ~150) for a few currency religious symbolism
amount of another pollutant. So, hours on Monday evening as to help it resist wear and tear.
each pollutant’s quantity in the air compared to Monday morning
is adjusted to a common scale (say, (~340), before turning bad again
0 to 500) that works for all (500) that night as fireworks
pollutants. Finally, the pollutant began. This means the average
with the worst sub-index
determines the AQI for that time
improved as Tuesday progressed,
but worsened again to reach its
MINT METRIC
and location (see chart). worst only by Tuesday night. by Bibek Debroy

Cole and Heale wrote a book

3 Is there a real-time air
quality number available?
The AQI given by the Ministry of Earth
On what it took
Sciences’ SAFAR unit is real-time, which is
For Liz Truss to rise to power.
commonly cited. So, don’t get confused if it The authors are now very dour,
doesn’t match with the CPCB’s AQI. The
latter will be markedly lower if there have
Reduced to no better than gobbledygook.
been phases of better air in the preceding
24 hours. E.g., on Wednesday morning,
Noida’s AQI was 310 as per SAFAR, but
only 270 as per CPCB.
QUOTE OF THE DAY
2022 will create residential
4 Why do I need to know
about the differences? 5
A Delhi BJP spokesperson on
Are “hazardous” and
“severe” same?
The CPCB and SAFAR indices are
market history in India, having
Tuesday cited a third index (by the categorized into good, satisfactory,
already breached all previous
World Air Quality Index Project) to moderate, poor, very poor, and highs and continuing to
claim an AQI much higher than severe, with an additional “severe-
CPCB’s or SAFAR’s. That index plus/emergency” label for 500+ in
witness strong sales
uses a different scale, developed by SAFAR. The World Air Quality momentum in the
the US Environmental Protection Index Project uses good,
Agency, which itself admits that moderate, “unhealthy for sensitive
ongoing festive season
NAQI is better suited for Asian groups”, unhealthy, very
dust. Yet, this third index is useful unhealthy, and hazardous. That’s
because it allows us to compare the difference (it’s not easy to draw
cities across the world. If we don’t parallels). Moreover, the
know the difference, politicians apocalyptic AQI of 999 seen in ANUJ PURI
may use convenient numbers past years isn’t possible on the Anarock group Chairman
(sometimes unintentionally) to CPCB index since it caps the AQI
underplay or overplay AQI. at 500, but is possible on others.

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 PLAIN FACTS

India’s antitrust body

has a collection issue
BY HOWINDIALIVES.COM

O n 19 October, India’s competition regulator imposed a fine of about ₹223 crore on travel portal MakeMyTrip for enter-
ing into preferential pacts with hotel partners. At current exchange rates, that’s roughly about $27 million, or about
9% of the company’s 2021-22 revenues. The MakeMyTrip stock fell only about 0.7% that day, underscoring what
the market thought about the material impact of the Competition Commission of India (CCI) order. In its 13-year operational
history, the CCI has delivered anti-competition orders of wide import and imposed huge fines, but has collected very little.
In the eight years from 2011-12 to 2018-19, the CCI imposed a cumulative penalty of ₹13,339 crore across 177 cases, but col-
lected a mere ₹60.4 crore, or 0.4%, till 31 March 2019, according to latest available data. A high share of CCI orders where
the charge is that of cartelization and a significant fine is imposed end up being challenged in higher legal forums, namely
the National Company Law Appellate Tribunal (NCLAT), high courts, and the Supreme Court.
CCI rulings can be broadly broken into two sets. The first set pivots around anti-competitive issues. The recent CCI orders
against Google India, fining it a total of ₹2,275 crore, is an example. The second set is approvals for mergers and acquisitions
that can potentially dilute competition in the particular industry. The first set is where the orders and challenges lie. Of the
867 orders passed by CCI between 2011-12 and 2018-19, 304 orders, or 35%, ended up in appeals. In the last two years of this
period, appeals exceeded 50%.

The competition regulator has collected About one-third of CCI's anti-trust

less than 1% of fines orders end up in appeals
Penalty imposed by CCI ( crore) Share of anti-competition orders appealed against (%)
Net penalty realised by CCI on 31 March 2019 ( crore)
2009-10 33
1.1 3.6 5.9 2.5 1.4
14.9 22.6 8.4 2010-11 16

7,156.2 2011-12 31

2012-13 44

2013-14 32

2014-15 30

2015-16 26
2,592.4

2016-17 39
1,501.6
860.4 2017-18 56
688.4
288.3 436.7 357.9
2018-19 51
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Source: Competition Commission of India

European Whip The European regulator has a

high collection rate
THE MARKED financial gap between imposition and 0.5 Fines imposed by EC in cartel cases
collection ends up diluting the CCI’s effectiveness as an 1990 to 1994
0.3 Adjusted for court judgments
authority that aims to preserve a free market and competition in (in billion euros)
1995 to 1999 0.3
Indian industry, both in letter and in spirit. When it comes to 0.3
performing such a regulatory role, the European competition 3.5
2000 to 2004
regulator is cited as an effective global benchmark. Between 3.2
1990 and 2022, the European regulator saw through 152 2005 to 2009 9.4
decisions in cartelization cases. Several of these cartelization 7.9
cases involved industry leaders across sectors such as Daimler 2010 to 2014 7.9
7.6
in trucks (2016, fined €1 billion), Saint Gobain in car glass (2008,
€715 million), VW Group in car emissions (2021, €502 million) 2015 to 2019 8.3
8.2
and Deutsche Bank in euro interest rate derivatives (2013, €466
2020 to 2022 2.1
million). Since 1990, the European competition regulator has 2.1
imposed fines of about €31.9 billion in cartelization cases. Of 0 2 4 6 8 10
this, it has realized, after court proceedings, €29.5 billion, or Data for 2022 till 12 July 2022
92% of the total fines imposed. Source: European Commission

Real estate and auto lead in

anti-trust matters noted by CCI
Absence of Closure
Anti-trust matters noted by CCI between 2009-10 and 2018-19 CONSIDER THE status of one of the high-profile cartelization
Real estate 209 orders passed by the CCI. In 2014, the CCI collectively fined 14
leading automobile companies ₹2,544 crore on the charge of
Automobiles 106 not making their spare parts available freely in the open market
Finance 69 for independent repairers. The automobile companies
approached the Delhi high court, which, in April 2019, said the
Media 68
companies could approach NCLAT. Information in the public
Health/pharma 55 domain indicates no further updates in this case. The CCI cases
Petroleum/gas 44 or orders against cement companies for allegedly colluding to
fix product prices are also winding their way through multiple
IT 41 legal hoops.
Railways 35 The CCI, on its part, has been taking up cases. In the 10-year
Power 25
period between 2009-10 and 2018-19, the latest available, the
CCI has noted 1,008 antitrust matters. Ten sectors account for
Civil aviation 24 about two-thirds of these cases, led by real estate, automobiles
Source: Competition Commission of India and finance. Closure with big fines, though, is elusive.

In Appeal Companies tend to pay small fines,

but contest large ones
SOME CASES arose from complaints. For example, the 2016 Status of orders passed with penalty in 2018-19
case in which the CCI fined 11 cement companies ₹6,300 crore Penalty ( crore) Number of cases
for cartelization was filed by the Builders’ Association of India,
an industry grouping. The CCI also takes up cases by itself, like
an order it passed in April 2018, where it investigated the
1.4 0.7
presence of a cartel in zinc carbon dry cell batteries. 303.1 52.5
In terms of fines, this was the big order of 2018-19. The
collective penalty imposed on 20 parties was ₹214.8 crore,
which amounted to 60% of the full-year amount. Of these, four
parties paid the fine, while the others went to NCLAT. In 2018-
19, fines were imposed in 31 cases. In 19 cases, fines were paid or 5 7 6 13
were being paid, but this amounted to just ₹2.1 crore. The
remaining 12 cases, with a collective fine of ₹355.6 crore, went
into appeal. That, today, typifies the state of CCI rulings. Part realisation/part Order stayed Penalty being Penalty
stay by NCLAT by NCLAT recovered deposited
www.howindialives.com is a database and search engine for
Source: Competition Commission of India
public data.
PARAS JAIN/MINT

PEANUTS by Charles M. Schulz

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 NeW DeLhI, MUMBAI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE* VOL. 16 NO. 257 Rs 5.00 IN DELHI-NCR; Rs 6.00 OUTSIDE DELHI-NCR. PRICE WITH HINDUSTAN TIMES Rs 10.50 (FOR DELHI & NCR) 16 PAGES

Thursday, October 27, 2022

IIT Madras Research Park: Banks write off bad loans of

livemint.com The incubator of dreams uP10 over ₹30k crore in Q2 uP5

SENSEX 59,543.96 0.00 NIFTY 17,656.35 0.00 DOLLAR ₹82.73 ₹0.00 EURO ₹81.61 ₹0.00 OIL $91.03 $0.50 GOLD ₹49,818 ₹0

Fairfax eyes $1.5 bn in Rising deposit rates Festivals fail to

lift air travel in
DON’T MISS

to hurt bank profits

Bangalore airport exit in coming quarters
October above
pre-covid level
Anu Sharma
The stake sale, if completed, will be the largest exit by Fairfax in India Shayan Ghosh anu.sharma@livemint.com
shayan.g@livemint.com NEW DELHI
MUMBAI Government to extend export
Anirudh Laskar

T
he demand for air travel sops to trades settled in rupees
exIT GaTe
T
anirudh.laskar@livemint.com he September quarter during the peak festival Exporters settling their trades in rupees will soon
MUMBAI could be the final quarter season failed to cross the be able to avail of export incentives and duty
Fairfax’s stake sale plan may be a part of its India consolidation strategy, and in
line with the Prem Watsa firm‘s stake sales in other Indian firms in the past year: of extraordinary profits pre-pandemic level, belying rebates, in a move that promises to boost

F
airfax Financial Holdings for banks in the near term, as expectations of a full recovery. shipments to countries like Russia. The
SHAREHOLDING IN BIAL VALUATION Directorate General of Foreign Trade is expected
Ltd, controlled by Canadian GAME the ongoing repricing of depos- Average daily air passenger
billionaire Prem Watsa, SIEMENS AIRPORTS KARNATAKA
its promises a coming squeeze traffic in October, the month to issue a clarification in this respect shortly. >P6

1
Project Authority State Industrial
plans to sell its entire stake Ventures of India and Infrastructure in net interest margins. when both Dussehra and
in Bangalore International
GmbH Development
Corp
$ billion Most banks reported better Diwali were celebrated this
AMOUNT Fairfax has
Airport Ltd (BIAL) for at least $1.5 bil- infused into BIAL profit numbers and stronger year, remained at around Moonlighting is a conflict of
lion, two people familiar with the margins in the September Until now, banks have been 360,000 air passengers, as interest: IBM to employees
matter said.
Fairfax has infused about $1 billion
into BIAL, making it the billionaire’s
54
FAIRFAX
Financial
Holdings
20
13 $ 1.5 billion
CURRENT valuation of
quarter, aided by the combina-
tion of front-loaded loan rate
hikes and delayed deposit rate
reluctant to hike deposit rates. MINT

ings account book, mainly on

Fairfax's stake in BIAL
largest investment in India. 13
against the pre-covid level of
nearly 400,000 passengers.
This is also lower than the
IBM has asked staff to refrain from engaging in
moonlighting. “A second job could be full-time, part-
time, or contractual in nature, but at its core, is a failure
increases. account of our high net-worth average number of daily air to comply with employment obligations and is a

“A premium of 40-50% is expected
because air passenger traffic is set to
increase, and the airport is now capa-
ble of accommodating a much larger
number of flights and passengers with
ease,” one of the two people cited
above said, requesting anonymity.
If completed, the stake sale will be
the largest exit deal by Fairfax in India.
Emails sent to spokespeople for
Fairfax and BIAL, which runs Benga-
luru’s Kempegowda International
Airport, remained unanswered.
“The planned stake sale may be
done in tranches with a valuation of
$2.5-3 billion for the international air-
port. And long-term strategic players
or corporates will be preferred to be
the new owners. There may be a few
small investors, but that will be addi-
tional,” the first person said.
Fairfax owns around 54% of BIAL,
while Siemens Project Ventures
BIAL: Bangalore International Airport Ltd
Source: Company
CHANGING HANDS
The planned stake
sale is likely to be
completed in tranches
GmbH holds 20%, Airports Author-
ity of India 13% and Karnataka State
Industrial and Infrastructure Devel-
opment Corp. 13%.
On 29 June, Bengaluru airport said
it achieved a significant milestone by
crossing the 250 million passenger
mark since the launch of its operations
or Airport Opening Day.
“The addition of new carriers in
conjunction with the introduction of
new routes and rising passenger
numbers on existing routes has led
3
(in %) Up to Analysts expect the repricing and affluent customer base, passengers recorded in the fes- potential conflict of interest,” Sandip Patel, MD for
to happen gradually over the many of whom have moved tival month of October 2019, IBM India/South Asia region said in a note to staff.>P7
$ billion
BIAL's valuation next year as existing deposits their money out of the savings when the average number of
get renewed over time, and deposit rate to liquid and fixed daily air traffic was around
fresh deposits come at a higher income instruments, which are 397,000 passengers. Dussehra Brand Kohli sizzles after India-
LoNG-TeRM strategic IN June, BIAL crossed the cost. offering short-term higher and Diwali were also celebrated Pakistan T20 World Cup thriller
firms may be preferred 250-mn passenger mark Until now, banks have been rates,” said Uday Kotak, manag- in October 2019. After clinching a win against Pakistan at the ICC T20
as the new owners since launch of operations reluctant to raise deposit rates, ing director and chief execu- In fact, for the seven-day data World Cup thriller, brand Virat Kohli is likely to rise
but the change from liquidity tive, Kotak Mahindra Bank. from 19-25 October, the aver- up the endorsement rankings. Despite ruling the
SARVESH KUMAR SHARMA/MINT
abundance to near-deficit has Kotak said that future age daily air passenger traffic rankings, Kohli’s brand value dipped 21% from $237.7
to this noteworthy accomplishment. worked in favour of savers. spreads and pricing would was around 350,000 air pas- mn in 2020 to $185.7 mn in 2021, said a report by Kroll ,
While the pandemic has meant that Banks are faced with the depend on the percentage of sengers, and daily flight depar- formerly Duff & Phelps, a consultancy. >P7
traffic growth over the past two years challenge of bringing savers low-cost current and savings tures stood at around 2,700
has been slower than usual, BLR Air- back into the fold, some of account deposits, the cost at flights as against the pre-covid
port has historically grown very fast, whom had migrated to other which other deposits grow level of 2,900 flights. Lenders look to recruit more
as evidenced by how quickly the air- investment options. against loans, and the terminal “Before the pandemic, peo- women business correspondents
port has reached some of these mile- As Kotak Mahindra Bank told rate for the benchmark repo. ple used to work from offices
The Centre plans to raise the number of female
stones,” BIAL said in a release. analysts on 22 October, some In recent week, banks have and travel back home during business correspondents (BCs) to a third of the total
Fairfax has already initiated talks savings deposit customers have tried to claw back lost deposits the festive season. However, number by 2027. Women are considered better
with strategic investors, the people left for other instruments. through higher interest rates post the pandemic, multiple managers of household finances, and increasing the
cited above said. “And as interest rates have for a limited period and companies are still continuing number of women BCs is expected to channel this
tightened, we have seen some skill into improved financial planning. >P2
TURN TO PAGE 6 bleed, particularly in the sav- TURN TO PAGE 6 TURN TO PAGE 2

Inflation trajectory
Even if price pressures persist, base effect could
help bring inflation down
Govt may tap green bonds to fund Dabur India picks up 51%
How inflation will pan out if... (in %)
CPI inflation so far ...seasonal trend continues*
...there is no further price pressure**
battery storage, N-E hydel projects stake in Badshah Masala MINT
8
7.4 Utpal Bhaskar scheme for the north-eastern Suneera Tandon and single spices.
7
utpal.b@livemint.com states’ hydropower projects in suneera.t@livemint.com India’s branded spices mar-
NEW DELHI the first tranche is in the NEW DELHI ket is set to double to ₹50,000
6 works,” said one of the two gov- crore by 2025. Branded spices

I P
ndia’s first sovereign green ernment officials cited above, ackaged consumer will make up half of the spices
5 bond could be used to finance requesting anonymity. goods company Dabur sold in the country by then,
a string of clean energy VGF can push India’s infra- India Ltd on Wednesday according to a 2021 report by
4 schemes, including viability gap structure-creation plans bought a 51% stake in Badshah investment bank Avendus
Jan Sep Mar funding for battery storage, through public-private part- Masala Pvt. Ltd for ₹587.52 Capital.
2020 2022 2023 energy efficiency schemes for nerships, with the electricity crore, entering the branded Conversion from loose to
* If CPI rises in each month of H2 FY23 at the average pace of last five years small and medium businesses storage business expected to be spices market through its first branded spices, the growing
for that month; ** If CPI stays at the same level as seen in Sep 2022 for the
rest of the fiscal. Source: CMIE, Mint calculations
and equity support for hydro- The Centre’s borrowing for Oct- a vital part of the energy transi- acquisition in the packaged demand for spice mixes (or
power projects in the North-East. Mar, estimated at ₹5.92 trillion, tion. Large battery storages foods space. blends) to ease the cooking
PARAS JAIN/MINT
Two government officials includes ₹16,000 crore of its that store electricity in the form The company said the Dabur posted a net profit of process, and a distribution

Inflation to taper aware of the plans said the

power ministry is looking to
propose these schemes to be
sovereign green bond offering. MINT

green bond offering.

of chemical or electrochemical
energy and re-convert it to
electricity can help power
acquisition aligns with its stra-
tegic intent to expand its foods
business to ₹500 crore in three
₹490.86 crore in the September
quarter, down 3% from a year ago.
push by regional companies
are driving this growth in a
market dominated by regional

by March as base
considered for allocation in the
₹16,000 crore green bond.
Schemes will be selected on the
basis of their potential to reduce
Such initiatives are expected India’s electricity grids, given years and enter adjacent cate- shareholding after five years,” brands.
to strengthen India’s green the intermittent nature of elec- gories. said P.D. Narang, group Dabur said it views ground
energy credentials in the UN tricity from clean energy sour- The branded spices and sea- director, Dabur India. and blended spices as a good
Climate Change Conference to ces such as solar and wind. soning market in India is Dabur’s move marks further addition to its existing foods

effect takes hold carbon emissions and the econ-

Pragya Srivastava average sequential pace as
pragya.s@livemint.com seen in the past five years, the
CPI inflation will ease to 6.9%
omy’s carbon intensity.
The government announced
the plan to sell sovereign bonds
to fund green infrastructure in
the February Union budget.
be held at Sharm El Sheikh in
Egypt next month.
“In the first tranche, a total of
₹16,000 crore under green
finance bond is to be made
available to all ministries. The
The idea is to store cheap
green power during off-peak
hours in battery storage and
release it for consumption when
the electricity demand increases.
Also, given the large share of
worth over ₹25,000 crore, the
company said in a filing to the
exchanges.
The transaction, which val-
ues Mumbai-based Badshah
Masala at ₹1,152 crore, is
consolidation in the branded
spices market that has already
seen a clutch of acquisitions,
including ITC Ltd’s invest-
ment in Kolkata-based spice
maker Sunrise Foods.
portfolio.
“The Indian spices and sea-
soning category is a large and
attractive market. Badshah
Masala is one of the key players
in this space. This acquisition

I
ndia’s retail inflation rate will
ease to within the central
bank’s tolerance band of
2-6% by March, even if prices
continue to rise for the rest of
the year as per the trend of past
five years, thanks to the statisti-
cal effect of a favourable base,
Mint calculations show.
While the expected modera-
tion in the inflation rate does
not necessarily mean a decline
in prices from current levels, it
will be helpful for the Reserve
in October from 7.4% in Sep- The government’s borrowing proposal to include VGF small and medium businesses expected to be completed this In 2020, Norway’s Orkla will accelerate our growth
tember but will still be around for the second half, estimated to scheme for battery storage, in the economy, the Centre is fiscal year. picked up a 67.8% stake in strategy as we continue to
6.5% in February, show Mint be ₹5.92 trillion, includes the MSMEs energy efficiency “As per our agreement, we Kochi-based Eastern Condi-
calculations. It will then slip to ₹16,000 crore of its sovereign schemes, and equity support TURN TO PAGE 6 will acquire the balance 49% ments, which sells blended TURN TO PAGE 6
5.7% in March 2023 after stay-
ing above 6% for 14 straight
months.
To understand how strongly
the base effect will play out
when no further price pressure
Earth’s on track to warm above 2°C despite climate action
is assumed, that is, the index
stays the same as it was in Sep- Bloomberg sions by analyzing all national from the UN Intergovernmental end of this decade, the report on the path to net zero, the req-
tember, the decline in CPI feedback@livemint.com climate plans, also known as Panel on Climate Change. said. Last year, the UNFCCC esti- uisite for halting global warm-
would be quite dramatic—from nationally-determined contri- Extreme weather events have mated emissions would con- ing, the UNFCCC report said.

Bank of India (RBI), which is
mandated to keep inflation
within the 2-6% range. Infla-
tion has been above 6% for
three quarters, implying a fail-
ure of monetary policy.
Some winter months usually
see deflation, or a decline in pri-
ces, in food items, which often
keeps any sharp rise in the Con-
sumer Price Index (CPI) in
check between October and
March.
But last year, retail prices
rose 1.4% in October—the
quickest pace for this month in
the previous six years, making
the base favourable.
If retail prices rise each
month hereon at the same
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G
7.4% in September to 5.9% in
October and all the way down
to 4.5% in March.
Analysts have also pointed
out how the incoming base
effect will ease inflation rates.
“CPI inflation may moderate
in the coming few months as
base effect emerges and prices
of vegetables correct (seasonal
effect comes down in winter
with fresh harvest),” said Crisil
in a report dated 13 October.
RBI’s projections suggest a
moderation in inflation even as
the central bank expressed
worries over elevated imported
inflationary pressures amid an
TURN TO PAGE 6
overnment plans to cut
greenhouse gas emis-
sions aren’t enough to
avoid catastrophic global warm-
ing, with the planet on track to
heat up between 2.1 and 2.9
degrees Celsius by the end of the
century compared to pre-indus-
trial times, according to a new
report from the United Nations
Framework Convention on Cli-
mate Change.
Despite some progress in the
last year, governments need to
do more by 2030 to ensure that
the global temperature increase
is below 2°C and ideally closer to
1.5°C—the goal set in the Paris
Agreement reached in 2015. The
UNFCCC reached its conclu-
butions or NDCs, submitted
since 2015.
“The good news—projections
show emissions won’t be
increasing after 2030,” UN cli-
mate change executive secretary
Simon Stiell told reporters on
Wednesday. “The bad news—
they’re still not demonstrating
the rapid downward trend scien-
tists say is necessary this dec-
ade.”
Climate scientists estimate
that human-caused greenhouse
gas emissions need to halve by
the end of this decade, and to be
eliminated by mid-century in
order to keep warming below
2°C by 2100. While the conse-
quences of planetary heating
Governments need to do more
by 2030 to ensure the global
temperature increase is below
2°C, the report said. REUTERS
above that threshold are deemed
to be catastrophic, today’s
warming of 1.1°C above pre-in-
dustrial times has already
resulted in irreversible changes,
according to the latest report
exposed millions of people to
food insecurity and malnutri-
tion; heat-related deaths have
increased; and climate migration
has risen. Agriculture, tourism
and fishing are seeing losses.
Rich countries that are most
responsible for historical CO2
emissions also have the most
resources to adapt, while poorer
countries that have contributed
little to climate change face the
brunt of the shocks.
If all plans to cut greenhouse
gas emissions are fulfilled, global
emissions will total 52.4 billion
metric tonnes of carbon dioxide
equivalent in 2030, down 0.3%
from 2019 levels, indicating that
emissions could peak before the
tinue rising and reach 54.9 bil-
lion metric tonnes by 2030.
Signatories to the Paris Agree-
ment are increasing their ambi-
tions, but not fast enough, the
UNFCCC analysis shows. Even if
all country promises are fulfilled,
there would still be an excess of
16 billion metric tons of CO2
above the threshold required to
keep global warming at 2°C.
The wide range in the warm-
ing estimates—between 2.1°C
and 2.9°C—is due to uncertainty
over whether countries can
implement their plans. If emis-
sions are not reduced suffi-
ciently by 2030, cuts will need to
be much sharper after that date
to compensate for the slow start
“We’re bending the curve on
emissions downwards, they are
projected to go in the right direc-
tion,” Stiell said. “But they are
not going down enough fast
enough, far enough—this is
nowhere near the scale of emis-
sions reductions required to put
us on track toward a 1.5°C world.”
A second report by the
UNFCCC concluded that emis-
sions could be roughly 68%
lower in 2050—compared to
2019 levels—if all plans were
implemented. The research,
which focused on countries’
long-term climate goals, warned
that some net zero plans post-
pone climate action that should
take place this decade.
 02 ThursDay, 27 OcTOber 2022
New Delhi ECONOMY & POLICY LIVEMINT.COM

m MINT SHORTS
India, China bilateral trade crosses
Finmin backs more women Govt asks
WhatsApp
$100 bn during January-September
New Delhi: India and China bilateral trade continued to boom,
crossing $100 billion in the first nine months of 2022 while India’s
trade deficit climbed to over $ 75 billion, according to trade data
as banking correspondents for outage
reasons
released by Chinese customs. The total bilateral trade, amidst the
military standoff in eastern Ladakh, went up to $103.63 billion, reg- PTI
istering a 14.6% increase compared to last year during the same feedback@livemint.com
period. China’s exports to India climbed to $89.66 billion, register- Govt wants to increase proportion of women banking correspondents from 10% to 30% NEW DELHI
ing an increase of 31%, data released by China’s General Adminis-

T
tration of Customs (GAC) said. PTI he IT ministry is learnt to
Subhash Narayan viced by BCs. have asked Meta-owned
subhash.narayan@livemint.com “Even though 56% of bank account WhatsApp to share the
New terror payment mechanism NEW DELHI holders are women, just about 8-10% of reasons behind Tuesday’s ser-
women BCs are servicing these women vice outage of the messaging
to be focus of UN’s Mumbai meet

T
he government plans to customers. There is an urgent need to platform. The snag left users
raise the number of female have more women agents as only these complaining about not being
business correspondents could help in bringing this important able to send or receive text and
(BCs) to a third of the total segment into the financial system video messages. The services
number by 2027 to get more quickly. Our surveys indicate that the resumed after nearly two
women to participate in the country’s need for financial instruments for the hours.
financial system. family is greater among women. So, rais- Sources said the IT ministry
Women are considered better manag- ing BC numbers to 30% should be a has asked the company to share
ers of household finances, and increasing starting point,” said Kalpana Ajayan, the reasons for what caused the
the number of women BCs is expected to regional head for South Asia, Women’s outage.
channel this skill into improved financial World Banking (WWB), an interna- An email sent to WhatsApp
planning, participation in savings instru- tional non-profit organization that was on the issue did not elicit a
ments and other financial products, and DFS, through the Indian Banks’ Association, has already told public sector banks part of the DFS committee on BCs. response. In a late night state-
help them become financially independ- to focus on raising women BCs and draw out a roadmap at an individual level. MINT Officials aware of the development ment on Tuesday, WhatsApp
New Delhi: The UN Counter-Terrorism Committee will dis- ent, two people privy to discussions on said that DFS, through the Indian Banks’ had said a “technical error”
cuss ways to deal with terrorist groups using the internet, the matter said. “Women are key to deepening the respond to queries on raising female BC Association, has already told public sec- caused the outage.
new online payment mechanisms and unmanned aerial sys- They said the department of financial goals of financial inclusion besides pro- numbers till the time of going to press. tor banks to focus on raising women BCs “The brief outage was a
tems. While the first day’s meeting will take place in Mumbai services is working out a plan to raise the viding financial service providers addi- The people cited above said the DFS and draw out a roadmap at an individual result of a technical error on
on 28 October, the second day’s deliberations will take place numbers of BCs from less than 10% to tional revenue potential to the tune of constituted a committee late last year, level. A formal timeline would be spelt our part and has now been
in New Delhi the next day. Terrorism poses one of the most over 30% over the next three years, and $700 billion globally. The programme which has accepted the recommenda- out in the Budget. resolved,” a Meta company
serious threats to international peace and security, said a roadmap on this would be part of an to raise the number of BCs is designed tion to raise the number of women BCs As per industry studies, banking spokesperson had said.
Ruchira Kamboj, Indian envoy to UN and the chair of the UN action plan for public sec- to over 30% by 2027. State agents are the building blocks of the According to Downdetector,
committee. PTI tor banks in the upcoming MORE EMPOwERMENT Bank of India, the coun- financial ecosystem, and women BCs which tracks outage reports,
Union budget. try’s largest lender, has are an important element of it as they the messaging app was not
A BC is an extended arm INDIA had 1.32 DFS accepted the wOMEN BCs are also given its nod to the bring with them transparency, the working for many users across
Sitharaman suggests AIIB scale of a bank branch, provid- million banking
correspondents
recommendation to
raise the number of
more likely to serve
the underserved,
exercise that would patience needed to make customers multiple regions on Tuesday
ing doorstep banking and in FY22 against largely go into channeliz- understand a financial product, and afternoon.
up investments in clean energy financial services to cus- 730,000 in FY20
women BCs to over
30% by 2027
especially in remote
areas ing women BCs into ser- develop better understanding and rap- At one point during the out-
New Delhi: Finance minister Nirmala Sitharaman suggested that tomers in remote areas. As vicing women Jan Dhan port with female customers who tend to age, over 29,000 reports were
the Asian Infrastructure Investment Bank scale-up investments of FY22, there were 1.32 account holders. be more willing to share issues of family flagged by users on Downde-
in key priority areas including clean energy, disaster resilient infra- million BCs, compared with 1.13 million to plug the gap and bring more women According to government estimates, finances with women BCs. tector. Downdetector’s heat-
structure, social infrastructure with a special focus on education in FY21 and 730,000 in FY20. But fewer into the country’s financial system,” on 10 August, there were 463 million Also, women BCs are more likely to map showed WhatsApp users
and health, and digital infrastructure. This would ensure that than 10% of these are women. The gen- said a government official privy to the PMJDY account holders, of whom serve the underserved, especially in in major cities, including Delhi,
meaningful impact is achieved and resources are not scattered in der gap is even bigger for BCs assigned to development. 55.6% (257 million) are women, and remote areas, encourage savings among Mumbai, Bengaluru, Chennai
multiple areas. She underscored the remarkable progress India has service Pradhan Mantri Jan Dhan The finance ministry and the depart- 66.8% (309 million) in rural and semi- women, and are considered less suscep- and Kolkata, were impacted by
made through its Digitalization Mission, utilizing technology boost Yojana (PMJDY) accounts. ment of financial services (DFS) did not urban areas would require to be ser- tible to malpractices. the snag.
financial inclusion. SAURAV ANAND

Irdai sets up health insurance

consultative committee Drugmakers seek 18 states get ₹54,000 cr in capex loans
duty cuts in budget Dilasha Seth
dilasha.seth@livemint.com
fund the budgeted capex or for
additional capex over and
NEW DELHI above what they had bud-
Priyanka Sharma of finance, said an official. geted.

S
priyanka.sharma@livemint.com “We have received multiple pending by states may be “That is where execution
NEW DELHI suggestions for union budget headed for a pick up will play a role. How much can
for pharma sector. First, amid concerns about they execute this year? If they

W
ith preparations include the pharmaceutical slowing economic growth, can execute more than what
underway for the sector in the Remission of with more than half the ₹1 tril- they budgeted then this will be
union budget, Duties and Taxes on Exported lion allocated by the Centre as supplementary. Otherwise, it
India’s pharmaceutical indus- Products (RoDTEP) scheme. interest-free capex loan for may just end up funding what
try is seeking duty cuts for key RoDTEP is not an incentive but states for the current fiscal was anyway budgeted for this
New Delhi: Insurance Regulatory and Development inputs and raw materials a reversal of duty to stay com- already sanctioned to 18 states. year,” said Nayar.
Authority of India (Irdai) on Wednesday announced it was besides duty incentives for petitive in the business. The ₹1 trillion was allocated as The Centre is releasing the
setting up a 15-member health insurance consultative com- exporters. scheme is aimed at refunding interest-free 50-year capital capex to states with conditions
mittee with an aim to achieve the goal of universalisation of The Pharmaceuticals Export exporters, the duties, taxes, and expenditure loans for states to such as facilitating Gati Shakti,
health insurance in the country. The panel has been set up Promotion Council of India levies paid by them at the Cen- be spent on new or ongoing The Centre is releasing the capex to states with conditions such as funding the PM Gram Sadak
for two years, Insurance Regulatory and Development (Pharmexcil), a body set up by tral, state and local levels. Sus- projects. The pick-up in the facilitating Gati Shakti, funding the PM Gram Sadak Yojana. MINT Yojana, incentivising digitisa-
Authority of India said in a circular. PTI the ministry of tainable growth of sanctioned amount comes tion, laying optical fibre cable
commerce and The drug pharma exports is amid a slow capex off-take by got the sanctioned amount can be used for new and ongo- networks, urban reforms, dis-
industry is seek- manufacturers difficult in the states in the initial months, include Maharashtra, Tamil ing capital projects as well as investment and monetisation.
Madras high court orders ing inputs from lobby is planning absence of RoD- with 21 states on an average Nadu, Kerala, Karnataka and for settling pending bills. “This, combined with a
the Indian Drugs TEP making it achieving only 15% of the bud- Haryana. Aditi Nayar, chief econo- rebound in economic activi-
status quo in MobilePe case Manufacturers
to raise tax-
uncompetitive in geted target till July. To encourage early capital mist, ICRA Ltd said while ties, is expected to mobilise
related issues
Chennai: The Madras high court has ordered maintenance of sta- Association the global market. “We have already sanc- spending, the sanctions are enough revenue for states to
tus quo against digital payment app MobilePe and its group com- (IDMA). The drug faced by the In view of this tioned close to ₹54,000 crore Centre has also States that have healthy, the push for higher capex. Conse-
panies. Justice M. Sundar granted the injunction while passing m a n u f a c t u r e r pharma industry pharma industries till recently to states from the front-loaded tax got sanctioned outgo under the quently, we expect an
interim orders on an application arising out of a civil suit from lobby is planning must be covered Rs 1 trillion allocated as inter- devolution to amount include interest-free state improvement in the state’s
PhonePe on 19 October. PTI to raise tax-re- in RoDTEP est free loans,” said a senior states. Maharashtra, capex scheme has capital spending in the coming
lated issues faced by the phar- Scheme,” said the official aware finance ministry official. It released two been muted up to months,” said Rajani Sinha,
Tamil Nadu,
maceuticals industry, and of the matter. The pick-up in the sanc- instalments of tax August. chief economist, CareEdge.
Air India Express to lease two wants the government to retain “Furthermore, we have tioned amount points to a devolution to Kerala, Karnataka “We are hope- While the first instalment of
the existing customs duty received a proposal to intro- potential revival in job-crea- states amounting and Haryana ful that activity 50% of the amount would be
Boeing 737 planes from Vistara exemption and reduce duties duce research and develop- tion in the second half of the to ₹1.17 trillion in will accelerate released after the list of pro-
Mumbai: Budget airline Air India Express is looking to lease two certain pharmaceuticals prod- ment incentive schemes which fiscal. August, against meaningfully in jects submitted by the state is
Boeing 737 aircraft from full-service carrier Vistara to offer more ucts. are administratively easy to Capital expenditure acts as a the normal monthly devolu- the post monsoon months,” approved, the remaining will
flights during the winter schedule, according to a source. Both Air The ministry of commerce implement and allowing 200% multiplier for economic tion of ₹58,333 crore. said Nayar. be given as second instalment
India Express and Vistara are part of the Tata group, which also has and industry is actively pursu- weighted basic deduction,” growth with spending on infra Funds provided to the states She added that the question after the utilisation certificate
Air India and AirAsia India under its wings. PTI ing the issues with the ministry added the official. projects. The states that have under the interest free loans is whether states will use it to is submitted.

Air traffic during festival season fails to match pre-pandemic levels
FROM PAGE 1
with work-from-home or
hybrid work, allowing their
employees to stay at home or
wherever they prefer. With
many people already home,
there is little need for travel-
ling,” said Rikant Pittie,
co-founder, EaseMyTrip.
While travel demand has
been below expectations, it has
still been stronger than the air
traffic seen in the festival sea-
son during 2020, 2021 and the
year so far.
“We have seen more than a
50% rise compared to 2021 in
our bookings,” Pittie added.
So far in October, the daily
air passenger traffic has risen
by nearly 6% from the prece-
ding month, and flight depar-
tures have also increased by
over 4%.
“Demand has been below
expectations. One reason could
be the work-from-home policy
by corporates, which means
that a lot of people are already
working from their homes. So,
that traffic is not there. In addi-
tion, high air fares in an infla-
tionary environment have also
contributed,” an analyst said.
In the past week, airfares for
major cities in India, including
Delhi and Mumbai, have wit-
nessed an increase of 20-25% in
air fares, Pittie said.
So far in October, the daily air passenger traffic has risen by
nearly 6% from the preceding month.
“Some of our clients just
returned to the metro cities as
companies have started calling
employees to offices for two-
three days a week. They opted
CORRECTIONS AND
CLARIFICATIONS
The graphic accompanying
or so of coming back from their capacity deployment issues, covid levels only by FY24. the 26 October page 1 story,
homes,” a travel agent said. whether due to supply chain “Also, since last year, there has “Walmart to raise up to $3 billion
During the month so far, air issues or non-availability of been an unprecedented rise in for Flipkart”, should have said
that Flipkart has $800 million left
traffic has also seen two spare parts. Some have restric- ATF prices, which was further
in its kitty for India operations.
extremes. tions on capacity aggravated by the The error is regretted.
Domestic air traffic crossed deployment, and Though the Russia-Ukraine
the pre-covid level on 9 Octo- even then, we momentum has war, which in turn Mint welcomes comments,
ber, with airports handling have not seen full been strong, ICRA has also pushed suggestions or complaints
402,697 passengers and 2,732 utilization of the expects passenger the fares, impact- about errors.
flight departures, indicating available seats. ing leisure travel
traffic to reach Readers can alert the
strong demand. The highest This largely demand to an newsroom to any errors in the
passenger count since the points out to the pre-covid levels extent. Hence, the paper by emailing us, with your
onset of the covid pandemic fact that the only by FY24 combination of full name and address to
HT was recorded on 17 April at recovery in these factors has feedback@livemint.com.
407,975 passengers. The low- domestic aviation impacted the
It is our policy to promptly
to wait for the winter holidays est demand for air travel was will be gradual,” another ana- capacity deployment levels for respond to all complaints.
to return to their home towns recorded on 24 October, the lyst said. the sector, said Suprio Baner- Readers dissatisfied with the
as they thought it did not make day of Diwali, at 280,807 air Though the momentum has jee, vice-president and sector response may write to the editor:
sense to buy expensive air tick- passengers. been strong, ICRA expects pas- head of corporate ratings at asktheeditor@livemint.com
ets and go back within a month “Nearly all airlines are facing senger traffic to reach pre- ICRA Ltd.

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 LIVEMINT.COM DEALS, TECH & STARTUPS ThursDay, 27 OcTOber 2022
New Delhi 03

Everstone
m MINT SHORTS
iPhone will get USB-C charger port
CCI’s fines may not impact Capital logs
out partially
as per EU law, says Apple executive
Apple Inc. will need to comply with a European Union law to
switch the iPhone to a USB-C charger, marketing chief Greg Jos-
wiak said on Tuesday. Joswiak said that the company will comply
Google’s near-term revenue from Acqueon
Debjyoti Roy
as it does with other laws. He declined to specify when the iPhone debjyoti.roy@livemint.com
may get the charger to replace Lightning. He made the comments NEW DELHI
at a Wall Street Journal conference in California. BLOOMBERG
Three-fourths of the tech giant’s India revenue comes from cloud and IT infra services
H
omegrown private
equity major Everstone
YouTube announces new Capital has partially
Shouvik Das exited Acqueon Technologies
features, design changes shouvik.das@livemint.com Inc., formerly Servion Global
NEW DELHI Solutions Ltd.
The PE fund sold a majority

T
he fines imposed by Competi- stake in the company to Long
tion Commission of India Ridge Equity Partners, which
(CCI) on Google for abusing primarily focusses on compa-
its dominance in the online nies in the financial and busi-
markets may not impact the ness technology sectors.
tech major ’s near-term prospects, con- The American PE major was
sidering that three-fourths of its overall founded in 2007.
revenue in India comes from cloud and Along with Solmark LLC,
IT infrastructure services, and from dig- Everstone had invested ₹403
ital advertising. crore in Servion in November
On 20 October, the anticompetitive 2014, and infused more funds
New Delhi: Google-owned streaming platform YouTube watchdog imposed a fine of ₹1,337.6 crore into the business in May 2017.
has announced new features and design changes on the on Google, accusing it of abusing its domi- Servion offers omnichannel
platform, in order to enhance video watching experience. nant position in the market for Android customer engagement soft-
In a blog post, the company said that it is adding new tools devices through pre-installed apps and ware solutions to its over 200
inspired by feedback from its YouTube creator community services. Five days later, CII imposed enterprise customers in finan-
and viewers. “Starting today, we are rolling out a new look another penalty of ₹936 crore, stating that cial services, banking, health-
and several features that offer a more modern and immer- the company was involved in anticompet- care, retail and distribution.
sive viewing experience,” Nate Koechley, UX Director, itive activities, “Ever-
YouTube, wrote in the blog. The changes include a pinch- forcing applica- CCI has accused Google of anti-competitive practices and of abusing its dominant position in the market. REUTERS stone exe-
to-zoom tool for videos on mobile devices. SOHINI BAGCHI tion developers c u t e d
to either use its tive avenues to comply with the regula- On Tuesday, CCI asked Google “not to app developers”. many val-
own payment tools, or pay a hefty service tory body’s recommended remedies. restrict” developers from using third party Akshayy S. Nanda, partner and com- ue-creation initiatives, includ-
AI-based chip startup SiMa.ai usage fee to Google even if they paid using “While most global precedent is of billing and payment services in their apps. petition law specialist at law firm Saraf ing professionalizing and insti-
other payment methods on Play Store. legislative moves, India’s order comes as So far, developers willing to list their apps and Partners, said the CCI order leaves tutionalizing Acqueon’s busi-
raises $37 mn in extended B1 round Last November, the company’s regu- a regulatory measure to control the mar- on the Google Play Store were required to room for ambiguity since “there is no ness, and adding deep industry
New Delhi: Artificial Intelligence-based chip startup SiMa.ai has latory filing with the Registrar of Com- ket dominance of a technology com- mandatorily use Google’s payment instru- clear definition of what conduct could experience, enabling R&D and
raised $37 million in an extended Series B1 round from Dell Tech- panies (RoC) pegged its annual revenue pany. As a result, Google will also likely ments to process all in-app purchases. be deemed ‘unfair’ or ‘unreasonable’. As sales investments, and facilitat-
nologies founder-backed MSD Partners. Existing partners for FY21 at ₹6,386 crore. Of this, 73% was look for ways to stall compliance, begin- The regulator also asked the com- a result, Google is likely to challenge the ing partnerships with new-age
including Fidelity Management & Research Company, Amplify from providing cloud platform and order at the National Company Law cloud contact centre players,”
Partners, Dell Technologies Capital, Wing Venture Capital, Alter information technology infrastruc- HAT IN THE RING Appellate Tribunal, before the sug- said Avnish Mehra, senior
Venture Partners, +ND Capital and entrepreneur Lip-Bu Tan also ture. The Google Play Store is not a gested remedies are enforced. managing director, co-head,
participated in the round. MALVIKA MALOO major contributor to Google India’s LAST November, GOOGLE Payments GOOGLE is likely to CCI has asked CCI, on its part, has given Google private equity, Everstone.
overall revenue. the tech company India posted annual look for ways to stall Google “not to 90 days to implement the changes “Across industries, enter-
pegged its annual revenue of ₹14.8 cr compliance, starting restrict” developers
Even Google Payments India, revenue for FY21 in FY21—just 0.2% with a stay order on from using third to its policy for accepting payments prises are challenged by anti-
LG Display reports losses, cuts which handles all payment and at ₹6,386 cr of its India revenue CCI’s directives party billing services on Play Store. A Google spokesper- quated customer engagement
billing related operations, son said on Wednesday the com- technology, making it difficult
investment budget due to inflation reported an annual revenue of pany is “reviewing the (CCI) deci- to react to shifting consumer
Seoul: South Korean flat-screen maker LG Display Co. Ltd ₹14.8 crore in FY21—just 0.2% of Goo- ning with a stay order on the CCI reme- pany “not to discriminate” against apps sion to evaluate its next steps”. The costs choices and growing compli-
posted its second consecutive quarterly loss and cut its invest- gle India’s revenue. dies,” George said. using own ways to accept payment for are low for developers on Play Store to ance burdens. Acqueon offers a
ment budget, as soaring inflation and a gloomy economic outlook Sijo Kuruvilla George, executive CCI recommended 20 ‘remedies’ to app-linked purchases by users, adding enable “access to hundreds of millions of modern, omnichannel cus-
dealt a further blow to demand for TVs and smartphones. Tech director of industry body Alliance of Google, including changing its policies that Google “shall not impose any condi- Indians”, he added. tomer engagement platform
gadget makers made large cuts to inventory and consumer senti- Digital India Foundation (ADIF), said that mandate preinstallation of its apps tion, including any price related condi- helping clients orchestrate
ment in Europe—a key sales region for organic light-emitting Google’s India revenues are not likely to on Android devices, and enabling the tion, on app developers, which is unfair, Alphabet drops as Q3 earnings, effective campaigns,” said
diode (OLED) TVs - worsened rapidly due to the Russia-Ukraine be affected as a result of CCI’s order use of third-party payment systems by unreasonable, discriminatory or dispro- sales miss estimates >P4
Andrew Cedar, principal, Long
war and energy crunch, the company said. REUTERS since the company may look at alterna- app makers on the platform. portionate to the services provided to Ridge Equity Partners.

Easebuzz plans $30 mn fresh fundraising

Debjyoti Roy company is keen to tie up with real-time transactions. Cus-
debjyoti.roy@livemint.com investors which have a track tomers can quickly and easily

Hemera’s Deep Dive into

NEW DELHI record of taking their portfolio make a payment that suits their
firms public. needs and communicate fur-

P
ayments Solutions Plat- The Pune-based company is ther via SMS, email, or What-

the South East

form Easebuzz Pvt. Ltd is backed by early stage investors sApp.
in talks with several 8i ventures, Varanium Capital Fintech startups have been
investors, including strategic and Guild Capital. It had raised attracting both early stage and
investors to raise around $30 $4 million in its seed round of growth funding in recent

million(₹246 crore), two people
aware of the matter
said. The company is
seeking a valuation of
around $150 mil-
lion(₹1,231 crore) in this trans-
action, said one of the two per-
sons, both of whom spoke on
the condition of anonymity.
GMO Payment Gateway
(GMO-PG), a unit of Japan’s
GMO Internet Group, is one of
the potential investors in
advanced talks for the transac-
tion, the second person said.
However, he added that the
funding last year. Earlier this
year, Easebuzz said it
had received in-prin-
ciple approval from
Reserve Bank of India
(RBI) for Payment Aggregator
(PA) authorization.
Email queries sent to Ease-
buzz and GMO-PG remained
unanswered till press time.
Easebuzz, which was incu-
bated by the Symbiosis Center
for Entrepreneurship and
Innovation in 2017, provides
payments infrastructure that
powers digital collections and
Easebuzz is seeking a valuation of
around $150 million. ISTOCK
payments for Indian small and
medium enterprises (SMEs).
EasyCollect is one of Ease-
buzz’s innovative SME offer-
ings, which is a complete API
integrated toolkit for develop-
ing enterprises. The product
accepts a variety of payment
methods and speeds, including
Asian Businesses
weeks despite the liquidity
squeeze in the market. Earlier
this month, Beams Fintech
Fund joined as a new investor
in Progcap, as the small and
mid-size business-focused
financing provider fetched $50
million (around ₹400 crore) in
its ongoing Series C round.
Prior to that, cross-border
neobanking platform Vance
operated by Vance Techlabs
Pvt. Ltd, announced it has
raised $5.8 million in a seed
funding round led by Hum-
mingbird Ventures.

Investors keen on real estate tech startups

Aman Rawat Zolo Stays have so far Therefore, to deliver scale,
aman.rawat@livemint.com remained the darlings of inves- increase efficiencies in the
NEW DELHI tors. Between 2009 and the delivery of residential apart-
first half of 2022, India’s real ments and create a healthier

A
fter backing property
discovery platforms for
the past decade, inves-
tors are now digging deeper
into other facets of real estate
technology, investing in start-
ups trying to solve the sector’s
pain points.
Early-stage and growth-
stage investors are now looking
at proptech startups solving
project delays, labour shortage
issues, project management
inadequacies, cash flow plan-
ning and transparency.
In recent months, Sequoia
Surge backed two Indian real
estate tech startups: the con-
struction services platform
Brick&Bolt and the SaaS plat-
form for mid-sized and small
contractors Powerplay. Stel-
laris Venture Partners and Y
Combinator invested in con-
struction tech startup 91Squa-
refeet, while Omidyar Network
India recently invested in
Project Hero, which connects
labourers with contractors and
offers them access to capital.
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Investors are bullish on the
proptech segment.
MINT
“We see opportunities across
many segments to build soft-
ware for the various stakehold-
ers in the sector and to address
demand-side and supply-side
models in new and interesting
ways,” Rajan Anandan, manag-
ing director at Sequoia India
and Southeast Asia and Surge,
said in an email query.
“We are still in the very early
stages of digitization and inno-
vation in real estate tech in
India.”
Property discovery plat-
forms such as MagicBricks,
Housing, NoBroker, Square
Yards, Broker Network and
estate tech industry received a
total of $3.42 billion in private
funding, according to a report
by Housing.com.
The report added that pri-
vate equity (PE) investments in
such companies jumped 35% in
2021 to a record $741 million
from the previous year, driven
by increased adoption of tech-
nology in the real estate sector.
The covid pan-
demic, however,
forced the industry to
adopt and accelerate
the digitization of their pro-
cesses and systems for manag-
ing business continuity and
operational efficiencies, said
Srirang Athalye, director of
listed Aurum Proptech Ltd.
The construction industry
spends less than 1.5% of its rev-
enue on technology, most of
which is spent on the head
office and not on-site execu-
tion, said Vipul Roongta, man-
aging director and chief exec-
utive of HDFC Capital Advis-
ors Ltd.
and green living environment
cost-effectively, there is signifi-
cant scope for adopting dis-
ruptive technologies in the real
estate and construction sector,
he added.
HDFC Capital Advisors
marked the first close of its
proptech fund in September.
Having raised a little north of
₹500 crore, the investment
arm of the largest
mortgage lender will
back startups driving
innovation and effi-
ciencies within the affordable
housing ecosystem. It invested
in proptech startup Homex-
change in July.
Last month saw the Confed-
eration of Real Estate Develop-
ers’ Associations of India
(Credai) and startup incubator
Venture Catalysts jointly
announcing a $100 million
fund to invest in early to growth
stage proptech startups lever-
aging data analytics, block-
chain, artificial intelligence,
and augmented reality.
Singapore based group, Hemera has been
successfully providing supply chain solutions
and has been also engaging in commodity
trading from past twelve years. Many private
and government corporations have
South East Asian
shown faith in Hemera’s credibility and economies have been
have enjoyed doing business with them. keeping a solid pace
of Business with
Running with utmost transparency, Hemera growing investment
offers supply chain financing solutions to big
opportunities.
corporations. Hemera is the channel partner
of Hamburg Commercial Bank, Germany and Hemera is keen to
deep dive in this
helps clients to get project and equipment
financing. The group is also planning joint evolving market.
ventures with few SOEs worldwide. The
Deepayan Mohanty,
opportunity opens Hemera’s horizons to get
Group Managing Director
variety of businesses spreading from retail to
commodities accustomed to best of supply www.hemeraglobal.com
chain financing solutions.
To learn more, drop in your queries: dm@hemeraglobal.com
Because we work with
Innovation, Integrity, Responsiveness and Operational Excellence
 04 ThursDay, 27 OcTOber 2022
New Delhi MARK TO MARKET LIVEMINT.COM

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

59543.96 0.99 17656.35 0.97 15158.10 0.67 41914.80 -0.17 17887.40 0.82 25040.86 0.01 28747.94 -0.01
1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%)

2.49 6.77 1.90 6.17 0.67 6.15 -3.46 4.47 0.95 5.89 -0.91 5.81 -0.22 7.51
6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%)

5.24 -2.33 4.14 -2.59 3.31 -1.15 -0.40 -0.28 3.39 -2.11 3.31 -0.41 0.17 3.28

m MINT SHORTS Icing on banking cake ICICI Bank investors

Hedge funds are slashing must not get complacent
leverage to ride market slump
Washington: Hedge funds have cut portfolio leverage
this year in a conservative turn that has sucked borrowed
money from global markets, adding selling pressure to
may start melting soon after robust Q2 earnings
stocks and bonds. Net leverage, a measure of industry risk Vivek Kaul Samarth Gupta & Harsha Jethmalani
In sweet spot On strong footing
appetite that takes into account long versus short posi- feedback@livemint.com samarth.gupta@livemint.com
A slower pace of increase in deposit ICICI Bank’s NII rose to a
tions, has fallen almost 20 percentage points to a year low multi-quarter high in Q2, aided by
rates has helped banks see continued

C T
of 66%, according to data earlier this month from Goldman entral banks worldwide he solid earnings performance improving margins.
improvement in the credit-deposit ratio.
Sachs Group Inc.’s prime brokerage. Separate figures from have been nudging interest of ICICI Bank Ltd in Q2FY23 16,000
Morgan Stanley’s prime brokerage show a similar decline rates up to control inflation. 75 gave its investors comfort. Con-
74.5
to 41% among US long-short equity hedge funds, a level So has been the case in Credit deposit ratio (in %) sistent growth in net interest income, NII (in  crore)
reached on only a small number of occasions over the past India, with the Reserve 74
declining provisions, lower credit
decade. The data, which was seen by Bloomberg News, pro- Bank of India (RBI) raising the repo rate costs and impressive return on assets 12,000
vides one of the broadest snapshots of the sector. Goldman or the interest rate at which it lends to 73.2 were among the positives.
Sachs and Morgan Stanley have the world’s two largest banks. 73 Even so, investors in the stock
prime brokerages, serving around 5,000 hedge funds This has turned out to be a boon for should not get complacent. The fight
each, according to the latest ranking by Convergence, a commercial banks. However, while they for grabbing more deposits is poised 8,000
research provider. BLOOMBERG have increased interest rates on lending 72 to get intense and ICICI Bank, despite
very quickly, they have been taking it its stronger financials, is not com-
slow when it comes to raising interest pletely immune to the after-effects.
71
rates on deposits. “While the quarter had strong tak- 4,000
In April, at the beginning of FY23, the eaways from superior NIM and lower
weighted average lending rate charged 70 credit costs, we would be wary of the
by commercial banks on fresh rupee sustainability of the former (NIM) and
loans stood at 7.51%. By August, the latest comfortable with the latter (credit 0
Q1FY21 Q2FY23
data available, this had jumped by 82 69
3 Jul 2020 7 Oct 2022
costs) on a relative basis,” said analysts Note: Standalone Source: Company,
basis points (bps) to 8.33%. One basis Source: Centre for Monitoring Indian Economy
at Kotak Institutional Equities. quarterly data; Motilal Oswal
NII is net interest income Financial Services
point is 0.01%. According to the domestic brokerage
MINT
When it comes to the weighted aver- SATISH KUMAR/MINT
house, the ability to sustain NIM SATISH KUMAR/MINT

age lending rate on outstanding rupee that happened over the last few months. the profits of the bank. Something similar would be difficult for all banks, Besides, the trends in ICICI Bank’s
loans, the interest rate charged has gone As of 7 October, the annual credit growth has happened with Canara Bank as well. including ICICI Bank. operating expenses are an important
from 8.72% in April to 9.13% in August, a of commercial banks stood at 16.75%, The cost of deposits has gone up from In Q2, ICICI Bank’s domestic NIM monitorable. During the quarter, its
jump of 41bps. while the deposit growth was at a more 3.99% to 4.09%, while the yield on loans rose 31 basis points sequentially to a standalone operating costs rose 24%
Anecdotal evidence suggests that loan sober 9.63%, albeit on a higher base. has grown from 7.03% to 7.24%. multi-quarter high of 4.45%. One year on year on the back of higher
rates increased further in September This allowed banks to quickly raise The question is whether this will con- basis point is 0.01%. The private sec- employee expenses and retail busi-
The yen dipped to 148.25 per dollar on Wednesday after after RBI raised the repo rate. interest rates on lending under the garb tinue. Fresh data and anecdotal evidence tor lender saw higher NIM expansion ness and technology-related costs.
weakening to a three-decade low last week. AP In comparison, the weighted average that RBI raised the repo rate while going suggest that the deposit rates are going than close competitor HDFC Bank This was a dull spot in its otherwise
term deposit rate on outstanding rupee slow on increasing deposit rates. This up faster now than over the last few Ltd. However, it should be noted that decent Q2 earnings, as the bank
term deposits of commercial banks has ensured that the margin between the months. Data from the RBI suggests that bank’s management told analysts that missed analysts’ expectations on this
Japan’s retail traders build up increased from 5.03% in April to 5.29% interest rate at which banks lend and the as of 14 October, the term deposit rate for incrementally, deposit metric. The bank’s man-
bets on yen amid intervention in August, an increase of a deposits of more than one repricing is likely to hap- If the bank’s agement expects operat-
Tokyo: Japan’s mom-and-pop investors are taking the much lower 26bps. SHOT IN THE ARM year period was in the pen at a faster pace, deposit growth ing expenses to remain
opportunity of intervention-driven yen surges to build up Banks have been able to range of 5.45-6.10%. In which may put pressure does not elevated. The bank
bets on further weakness in the beleaguered currency. The do this until recently, as BANKS have raised ALSO, the crucial DATA indicates that mid-August, it had been in on NIMs. adequately catch added 200 branches in
proportion of individual investors making bearish bets on they had more deposits lending rates quicker metric for banks, the repricing of deposits the range of 5.30-5.75%, This means, if the H1FY23 and the pace of
than on deposits, credit-deposit ratio, could happen at a up, it could
the yen surged to 68% this week, the highest since August, than they could lend. In giving their margins has been in good faster pace if credit which implies a jump of bank’s deposit growth addition was higher than
according to data from Japanese currency broker Gait- October last year, the cred- a boost stead of late growth is strong 35bps at the upper level. does not adequately hamper its chase in the past, the manage-
ame.com. Japan was suspected of intervening once more it-deposit ratio of banks These rates should go up catch up, it could ham- for market share ment said.
to help support the yen last Friday, and again on Monday. was around 70%, which further in the coming per its chase for market Meanwhile, ICICI
The yen dipped to around 148.25 per dollar Wednesday meant banks had been lending around rate they borrow had gone up, boosting months, implying that the repricing of share. Apart from that, Bank’s stock hit a
after weakening to a three-decade low of almost 152 last ₹70 out of every ₹100 they took on as their overall profit. deposits will now happen at a faster pace the new to bank franchise, which also 52-week high of ₹943.25 on the NSE
week. That triggered likely action from Japanese authori- deposits. However, as of 7 October, the This can be seen in the September assuming the credit growth remains caters to the SME segment, may falter on Tuesday. In this calendar year so
ties who are estimated to have spent more than $57 billion ratio jumped to 74.5%, meaning the quarter earnings of banks. Take the case strong. in a scenario of economic distress, far, ICICI Bank’s shares have rallied
to support the currency over the last two months, includ- banks are now lending nearly three- of ICICI Bank. The yield on their loans The icing on the cake in the form of said Krishnan ASV, senior vice presi- 25%, ahead of sector index Nifty Bank.
ing a confirmed $19.7 billion as part of September’s inter- fourths of their deposits. This is the rose from 8.12% in the June quarter to deposit rates growing slower than inter- dent, institutional research, HDFC A robust earnings performance gives
vention. Japan’s chief currency official Masato Kanda reit- highest the credit-deposit ratio has been 8.63% in the three months ended 30 est rates on lending may not be available Securities. “As of now, the market’s ICICI Bank an edge over peers, but
erated to reporters Wednesday that he was watching for for a while. September. In comparison, the cost of to banks for much longer. At best, banks assumption is that nothing can go after the recent up move, a meaning-
disorderly moves with a strong sense of urgency. He again This means banks had enough depos- deposits increased marginally from can benefit from this during the Decem- wrong here and, hence, investors ful rally in the stock is expected to
declined to comment on intervention. BLOOMBERG its to fund the jump in lending growth 3.46% to 3.55%. This has helped push up ber quarter. should remain watchful,” he said. happen gradually, said analysts.

Mark to Market writers do not have positions in the companies they have discussed here

Bitcoin rises Global Health IPO set to open on 3 Nov Euro back above dollar parity
toward $21k PTI
after economic strains in the US issue will be used to pay debt hospital in the fiscal year 2025,

on seasonal feedback@livemint.com and general corporate pur- the company’s total installed
poses. beds are expected to exceed
AFP

T
he initial share-sale of Founded by Naresh Trehan, 3,500. As part of its growth Poorly-received data,
spike trend Global Health Limited,
which operates and
a renowned cardiovascular strategies, the company also
and cardiothoracic surgeon, intends to capitalise on medi-
feedback@livemint.com including slower house price
growth and weaker consumer

T
manages hospitals under the Global Health is a leading pri- cal tourism. he euro on Wednesday confidence, showed that big
Bloomberg Medanta brand, will open for vate multi-speci- The company surged back above par- rate hikes by the US Federal
feedback@livemint.com public subscription on ality tertiary care The IPO consists reported a total ity with the dollar, with Reserve are “starting to open
November 3. provider in the of a fresh issue of i n c o m e of the US currency sliding some cracks in the American

B
itcoin is back on track to
respect a history of
climbing in October
amid speculation that the US
Federal Reserve is getting
closer to pivoting toward less
aggressive interest-rate hikes.
Bitcoin climbed more than
2% to trade around $20,700 as
of 10 a.m. in London, while sec-
ond-ranked Ether added 4% to
roughly $1,540.
The largest token has
jumped nearly 7% in the past
two days and is up a similar
amount for the month so far.
That’s still short of the average
22% gain in October over the
past decade, according to
Bloomberg.
The picture was less rosy at
the start of the week, when Bit-
coin was nursing an October
loss that suggested it was set to
defy the seasonal trend.
The initial public offering
(IPO) will conclude on Novem-
ber 7, according to the red her-
ring prospectus.
According to merchant
banking sources, the IPO size
could be about ₹2,200 crore.
The IPO consists of a fresh
issue of equity shares aggre-
gating to ₹500 crore, and an
offer-for-sale (OFS) of up to
50.8 million equity shares.
As a part of the OFS, Anant
Investments, an affiliate of pri-
vate equity major Carlyle
Google parent Alphabet’s stock drops as Q3 earnings miss estimates
Bloomberg
feedback@livemint.com
Proceeds from the IPO will be
used to pay debt. MINT
Group and Sunil Sachdeva
(jointly with Suman Sachdeva)
will offload equity shares.
At present, Anant Invest-
ments holds 25.64% stake in
Global Health and Sachdeva
owns 13.41% stake in the com-
pany.
Proceeds from the fresh
compared with the average
analyst projection for $58.18
billion.
North and East shares worth ₹2,205.8 crore against its main rivals on con- economy”, according to the
regions of India. ₹500 crore and an and a profit of cerns over the world’s biggest analyst.
Global Health,
OFS of up to 50.8 ₹196.2 crore in economy. “The Federal Reserve has
backed by private FY22. The euro bounced back been hiking rates aggressively
equity investors million equity The Indian above one dollar for the first in an attempt to bring inflation
such as Carlyle shares healthcare deliv- time since mid-September, The sterling also gained under control, and the coun-
Group and Tem- ery industry is helped also by expectations of against the dollar. BLOOMBERG try’s economy is starting to
asek, operates a estimated to post a big interest rate hike from suffer as a result,” Evangelista
network of five hospitals a 13-15% compound annual the European Central Bank on losses. said.
under the ‘Medanta’ brand growth rate between FY21 and Thursday. The dollar retreated follow- The sterling on Wednesday
in Gurugram, Indore, Ran- FY26, driven by pent-up There were large gains ing “a string of negative (US) jumped more than 1% against
chi, Lucknow and Patna. In demand, strong fundamentals, against the dollar also for the economic data released since the dollar, winning a boost also
addition, one hospital is under increasing affordability and British pound and yen, help- the beginning of the week”, from markets welcoming the
construction in Noida. Ayushman Bharat Yojana, ing them to recover some noted ActivTrades senior ana- appointment of Rishi Sunak as
Upon operation of its Noida according to a Crisil report. ground after recent sharp lyst Ricardo Evangelista. prime minister.
growth.” Chief Financial Offi- sprawling portfolio. Search and lion.
cer Ruth Porat, meanwhile, other related businesses, the YouTube, which also fell
said she expected headcount company’s financial engine, short of expectations in the sec-

However, some recent Fed
comments alongside mixed US
economic data have buttressed
bets on a slowdown in the mon-
etary tightening that’s pum-
meled risk assets in 2022.
The Fed may be starting to
show some signs of potentially
pivoting, according to Nick
Hotz, vice president of research
at digital-asset manager Arca.
“From a more macro markets
standpoint there’s definitely a
lot on the short side,” he said.
“If people close those shorts,
it could drive the price higher,”
Hotz said.
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A
fter reporting earnings
and revenue that
missed expectations,
Google parent Alphabet Inc.
said on Tuesday it would slow
hiring and control expenses,
signaling that it was girding for
tough times ahead as the econ-
omy falters.
Google’s advertising jugger-
naut, which had largely dodged
the digital-ad slowdown that
hit rivals earlier this year, is no
longer immune. Alphabet said
third-quarter sales, excluding
payments to distribution part-
ners, were $57.27 billion. That
Net income was $1.06 per
share, less than Wall Street’s
estimates for $1.25 per share.
The stock fell 6% during pre-
market trading in New York on
Wednesday after closing Tues-
day at $104.48.
As spiraling inflation crimps
growth in digital advertising,
Google and competitors such
as Meta Platforms Inc.’s Face-
book and Snap Inc.’s Snapchat
are fighting for smaller bud-
gets. Last week, Snap reported
its slowest quarterly sales
growth ever, which sent its
stock plunging and dragged
Third-quarter sales, excluding payments to distribution partners,
were $57.27 billion.
down Alphabet’s shares too.
Google’s search business,
which is more insulated from
economic swings than social
media ads, has begun to show
additions to fall by more than generated third-quarter sales ond quarter, is locked in a fierce
half in the fourth quarter com- of $39.54 billion, compared battle for advertising budgets
pared with the with analyst esti- and users’ attention with Byte-
previous period. The stock fell 6% mates of $40.87 Dance Ltd.’s TikTok. YouTube
“As we plan for in pre-market billion. Philipp released a short-form video
2023, we’ll con- trading in Schindler, Goo- platform called Shorts to coun-
tinue to make New York on gle’s chief busi- ter the popularity of TikTok,
important trade-
Wednesday after ness officer, said but analysts say the company
offs where some advertisers still has ground to make up.
needed,” Pichai closing Tuesday have begun to “Google needs to salvage
MINT said. “Through- at $104.48 trim spending. stronger growth from You-
out Google’s his- Google’s You- Tube to keep its head above the
signs of weakness. tory, periods of Tube missed the water,” said Evelyn Mitchell, an
Alphabet Chief Executive dedicated focus have enabled mark by an even wider margin, analyst with Insider Intelli-
Officer Sundar Pichai said the us to emerge strongly.” reporting ad sales of $7.07 bil- gence. “Being wholly reliant on
company was “focused on There were disappointing lion, compared with analysts’ how search performs, that’s not
moderating operating expense results across Alphabet’s average estimate of $7.47 bil- a good place to be.”
 LIVEMINT.COM
‘Beer sales
miss target
due to high
inflation’
Bloomberg
feedback@livemint.com
H
eineken NV pointed to
signs of weakness in
consumer demand
after beer sales missed esti-
mates amid growing inflation-
ary pressures.
The world’s second-largest
brewer said beer volumes rose
8.9% on an organic basis in the
third quarter, below the 11.8%
average analyst estimate. Ris-
ing costs dented margins and
higher prices discouraged
some customers from drinking
more. The stock fell as much as
10% in Amsterdam trading, the
most since 2003.
“We increasingly see reasons
to be cautious on the macroe-
conomic outlook, including
some signs of softness in con-
sumer demand,” chief execu-
tive officer Dolf van den Brink
said on Wednesday.
Brewers have managed to
largely protect margins this
year by raising prices to cope
with soaring costs. But there’s a
limit to how much customers
may be able to handle that as
rampant inflation and higher
food and energy costs destroy
discretionary purchasing
power.
Heineken in a statement
noted “early signs of demand
slowdown at the end of Sep-
tember and into October” in
some parts of Europe.
The Dutch brewer main-
tained its outlook for modest
growth this year. The company
said its price mix grew 13% in
the quarter, driven by increases
in response to accelerating
inflation. Shares of Carlsberg
AS also fell, declining 5%, the
biggest drop in seven months
for the Danish brewer.
Foreign reinsurers can repatriate
20% of assigned capital: Irdai
PTI
feedback@livemint.com
I
nsurance sector regulator
Irdai has allowed foreign
reinsurance branches,
including Lloyd’s India, to
repatriate up to 20% of the
excess assigned capital to
attract more players and allow
free movement of capital.As
part of the ease of doing busi-
ness in India, various commit-
tees deliberated on the repatri-
ation of excess assigned capital
by Foreign Reinsurance Bran-
ches (FRB) and Lloyd’s India.
As per Irdai norms, the regis-
tration of branch offices of for-
eign reinsurers other than
Lloyd’s have ‘assigned capital’
and net owned funds (NOFs) as
the capital requirements for
setting up business in India.
The applicant’s NOF should
not be less than the prescribed
amount of ₹500 crore at any
time and should infuse a mini-
mum assigned capital of ₹100
Chipmakers face uphill task
Bloomberg
feedback@livemint.com
T
exas Instruments Inc.
and SK Hynix Inc.
offered a gloomy view of
the chip market in their latest
quarterly reports, dashing
hopes of a quick rebound for
the $550 billion industry.
Dallas-based TI, whose
chips go into everything from
home appliances to missiles,
said Tuesday that revenue will
top out at $4.8 billion this
quarter—at best—short of the
$4.93 billion analysts had pro-
jected. Hynix, meanwhile, said
memory prices fell 20% over
the last quarter and warned of
“unprecedented deterioration
in market conditions”. The
Icheon-based firm slashed its
capital spending for next year
by at least half.
The pair of earnings reports
followed a rally for chip stocks
in recent days. The Philadel-
phia Stock Exchange Semi-
conductor Index, a key bench-
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CORPORATE ThursDay, 27 OcTOber 2022
New Delhi 05
Banks write off bad loans of Zee-Sony merger:
Groups to sell 3
more than ₹30k crore in Q2 Hindi channels
PTI
feedback@livemint.com
Bankers argue that loan write-offs are part of a routine process to manage balance sheets
M
edia groups Sony and
Zee have voluntarily
agreed to sell three
Gopika Gopakumar Hindi channels—Big Magic,
gopika.g@livemint.com Zee Action and Zee Classic—
New delHI to address possible anti-com-
petition concerns arising out
B
anks have written off large of their proposed mega-
amounts of bad loans during merger deal.
the second quarter to They submitted their pro-
improve their asset quality posal to the Competition
and pave the way for raising Commission of India (CCI),
fresh capital. which cleared the deal, subject Big Magic, Zee Action and Zee
Union Bank of India has written off to certain modifications on 4 Classic are on the block. REUTERS
₹8,599 crore of bad loans, reducing its October.
gross non-performing assets (NPAs) to More than three weeks after made public.
8.45% from 10.22% in Q1, while Central giving its nod for the transac- Deals beyond a certain
Bank of India wrote off ₹9,514 crore to tion, the regulator on Wednes- threshold compulsorily
bring down its gross NPA from 14.92% day made public its detailed require the approval of CCI,
in Q1 to 9.67% in Q2. 58-page order. which seeks to ensure fair
Canara Bank wrote off bad loans The two groups have agreed competition in the market-
worth ₹2,798 crore in the second quar- to divest Big Magic, which is a place.
ter, while IDBI Bank wrote off ₹5,347 Hindi general entertainment On 4 October, CCI said it has
crore compared to ₹548 crore in Q1. channel, as well as Zee Action cleared the proposed Zee-
“Banks want to take the tax benefits and Zee Classic, which are Sony merger deal, which was
and bring down NPAs faster. That is Hindi film channels, according announced in September last
why most banks are resorting to heavy to the order. year.
write offs,” said Anand Dama, senior They voluntar- To ensure fair
research analyst, Emkay Global Finan- ily agreed to the On 4 October, competition in
cial Services Ltd. Banks can avail tax The largest bad debt write-off amount was ₹2.36 trillion in FY19, followed by ₹234,170 crore in FY20. HT modification to they submitted the relevant mar-
incentives once they write off bad loans the proposed deal a proposal to kets, the regula-
after making 100% provisions. amount if the write-offs had not been to lower gross NPAs. According to the points during FY22 to 1.7%. The provi- after CCI’s prima- the CCI, which tor has also man-
Private lender HDFC Bank wrote off initiated. Trends and Progress report published sioning coverage ratio rose to 70.9% in facie opinion that
cleared the deal, dated various
bad loans worth ₹3,000 crore during “Many NPAs that have been written by the Reserve Bank of India (RBI) last March from 67.6% a year ago. the deal was likely requirements to
the quarter compared to ₹2,400 crore off are not recent NPAs. These are cor- December, banks wrote off ₹2.08 tril- The write-off ratio—the ratio of write t o c a u s e a n subject to certain be fulfilled by the
in Q1, while ICICI Bank wrote off NPAs porate accounts that have slipped into lion in 2020-21. off in a year compared to the gross NPA appreciable modifications purchaser con-
worth ₹1,100 crore in Q2. Smaller at the beginning of a year, declined adverse effect on cerned before
private sector bank IndusInd Bank operation Clean Up for the second successive year to competition. buying the three
wrote off ₹1,230 crore in the second 20.0% in 2021-22 When contacted, a Zee channels.
quarter. Union Bank of Canara Bank Central Bank of HDFC Bank wrote According to information availa- Entertainment Enterprises One of the conditions is that
Typically, public sector lenders India has written off
₹8,599 crore of bad
wrote off bad loans
worth ₹2,798 crore
India wrote off ₹9,514 off bad loans worth
crore to bring down ₹3,000 crore during
ble with the Rajya Sabha, sched- Limited (ZEEL) spokesperson the purchaser should not be
write off corporate loans, while pri- loans, reducing its during the second its gross NPA to Q2 compared to uled commercial banks have writ- declined to comment. There “Star India Private Limited or
vate sector banks write off small gross NPAs to 8.45% quarter 9.67% in Q2 ₹2,400 crore in Q1 ten off NPAs worth over ₹9.92 tril- was no immediate comment Viacom18 Media Private Lim-
business loans. Besides, bankers lion in the past five financial years. from Sony. ited (including their respective
often argue that loan write-offs are The largest bad debt write-off The channels have to be affiliates)”.
part of a routine process for balance doubtful category and are now being According to the financial stability amount was ₹2.36 trillion in FY19, fol- divested within a stipulated The purchaser should be
sheet management. written off,” said a senior banker with a report released in June, the gross NPA lowed by ₹2.34 trillion in FY20. In time or the “first divesture independent of and with no
However, large write-offs suggest public sector bank. ratio declined from 7.4% in March 2021 FY22 it was at a five-year low of ₹1.57 period”. However, CCI has not connection whatsoever with
that the NPA books of banks would Banks have been writing off NPAs to a six-year low of 5.9% in March 2022. trillion, according to provisional data disclosed the period in the ver- the resultant entity and its
have been larger by an equivalent since 2018, as a predominant recourse The net NPA ratio also fell by 70 basis available with RBI. sion of the order that has been affiliates.
crore into the branch office. specified by Irdai at the time of
After careful examination of grant of certificate of registra-
the recommendations of the tion; submission of a request
working groups, it is noted that justifying the reasons for repa-
to ensure sufficient reinsur- triation and a certificate stating
ance capacity in India and to foreign reinsurers’ net owned
attract more reinsurance play- funds of ₹5,000 crore or as pre-
ers for offering reinsurance at a scribed under the Insurance
competitive price, the free Act. Among others, they should
movement of have a solvency
assigned capital Various ratio after the
for foreign rein- committees repatriation of at
surance branches deliberated on least 50 basis
is required. the repatriation points higher
“Accordingly, it
of excess assigned than the control
is decided that level of solvency
FRBs and Lloyd’s capital by FRB i.e. 200% and a
India are permit- and Lloyd’s India certificate from
ted to repatriate certifying actuary
excess assigned about sufficient
capital with prior approval of reserves to meet reinsurance
the Authority,” the Insurance liabilities.
Regulatory and Development “Such withdrawal shall not
Authority of India (Irdai) said in exceed 20% of assigned capital
a circular on Wednesday. of such FRB/ Lloyd’s India as at
However, the relaxation the end of last financial year;
comes with certain riders such and one request in a financial
as a minimum assigned capital year can be made by the foreign
of ₹100 crore or a higher sum reinsurer,” Irdai said.
“The South Korean chip-
maker’s dramatic capital
expenditure cut is a bold state-
ment demonstrating their
determination to confront the
escalated uncertainties,” said
Hebe Chen, an analyst at IG
Markets Ltd. The production
cut “could boost the com-
pany’s margin if investors are
willing to take a long-term
view.”
TI rekindled fears that the
Texas Instruments fears the slowdown is spreading, saying
slowdown is spreading.BLOOMBERG sluggish demand had affected
chips for industrial equip-
mark, had climbed for seven ment—an area that had been
straight sessions, gaining seen as more immune to the
about 11% since the middle of slump. Its shares fell as much
the month. Investors have as 6% in late trading Tuesday.
been trying to pinpoint when Microsoft Corp. added to con-
flagging demand for chips cerns by posting its slowest
would begin to ease. Some growth in five years, with sales
welcomed Hynix’s action to of its Windows software to PC
stem oversupply and whittle makers falling shy of esti-
down production of lower- mates.
margin products. Its shares The Biden administration’s
rose as much as 2.1% in Seoul effort to rein in China’s chip-
on Wednesday after slumping making power has also cast a
29% on the year. cloud over the industry.
 06 ThursDay, 27 OcTOber 2022
New Delhi CORPORATE LIVEMINT.COM

Govt to extend export sops Repricing of deposits

to crimp margins at
CPI inflation may ease to 6.9% in
to trades settled in rupees banks from here on
October from 7.4% in September. FROM PAGE 1

Base effect The step, demanded by exporters for a while, could boost exports to countries such as Russia
through regular rate hikes on
new deposits. For instance,
State Bank of India (SBI)
to offer RBI Dilasha Seth products, food, pharma, and engineer-
recently raised deposit rates by
up to 80 basis points (bps).

relief in next dilasha.seth@livemint.com

NEw DElhI
ing equipment are the key areas where
India could see a boost in exports to
Russia.
India’s largest bank has
offered the 80 bps hike to new
depositors willing to park their

few months
FROM PAGE 1
appreciation in the dollar and a
possible pass-through of input
prices.
According to the RBI, infla-
tion is likely to average 6.5% in
October-December and 5.8% in
January-March, down from
7.2% in April-September.
The monetary policy com-
mittee is deemed to have failed
in upholding the mandate for
maintaining price stability
when average CPI inflation
remains outside the 2-6% band
for three quarters in a row.
RBI is now expected to send
a letter to the government
detailing reasons for the failure
to achieve the inflation target,
remedial actions proposed to
be taken, and an estimate of the
time within which the inflation
target shall be achieved.
Against this backdrop, an
expected downward trajectory
of inflation due to easing price
pressures and base effects may
help RBI.
On the interest rate front,
apart from domestic inflation,
interest rate hikes by other cen-
tral banks, the movement of the
rupee, and growth trajectory
are likely to continue playing
their roles in MPC’s actions.
Economists expect MPC to
hike the policy repo rate by
25-35 basis points in Decem-
ber.
E
xporters settling their trades
in rupees will soon be able to
With supplies from the European
Union nearly coming to a halt, espe-
funds for 211 days to less than a Banks are faced with the
year. challenge of bringing savers
avail of export incentives and cially for industrial and engineering On Wednesday, HDFC Bank back into the fold. MINT
duty rebates under India’s for- goods, this could be a big opportunity raised interest rates on fixed
eign trade policy, in a move for India. deposits, its second such hike “On the flip side, the impact
that promises to boost shipments to The mechanism is also aimed at this month. of the increase in some of the
countries like Russia. According to a facilitating trade with countries under Others such as Canara Bank, marginal cost of funds-based
government official aware of the mat- sanctions like Iran and Russia. India’s Yes Bank and IDBI Bank have lending rate (MCLR) will con-
ter, the Directorate General of Foreign exports to Russia have seen the con- also introduced special festive tinue to come through. We will
Trade (DGFT) is expected to issue a traction ease to 4.72% in August from season offers on deposits, also hopefully see high yields in
clarification in this respect shortly, fol- the previous year, from a decline of pointing to the increased com- some of our asset classes. And
lowing approval by the Union finance 13.1% in July. New Delhi’s exports to petition for funds. that will also take time to kind
ministry. Moscow saw a 24% decline in the April “My sense is that deposit of feed into our system,” he told
Currently, incentives to exporters in to August period to $992 million. rates will go up sharply in the analysts on 20 October.
the form of duty drawbacks, export “We hope that the government will next six months, and that would Bankers said that while mar-
promotion capital goods (EPCG) incen- clarify benefits on such exports in have a greater impact on banks gins are expected to shrink, it
tives, and rebates on duties and taxes rupee, which is hitherto only granted than the credit cost owing to wouldn’t be that significant.
under different government schemes for exports payments received in for- slippages,” said Prakash Agar- “While lending rates have
like Rebate of State and Central Taxes India’s shipments to sanctions-hit Russia could grow by another $5 billion once eign currency,” said A. Sakthivel, presi- wal, director and head of finan- gone up by 190 bps, cost of
and Levies (ROSCTL) and Remission of the rupee settlement mechanism becomes functional BLOOMBERG dent of FIEO. cial institutions, funds have not
Duties and Taxes on Export Products Exporters have been asking the gov- India Ratings and India’s largest bank, increased to the
(RODTEP) are available only if pay- account with state-owned UCO Bank. RBI last month said it has received a ernment to also extend the export ben- Research. SBI, has offered an same extent. Only
ments or export realizations come in In July, the Reserve Bank of India good response from four-five countries efits from incentive schemes like ROD- According to 80 bps hike to new on term deposits
freely convertible currencies including introduced a rupee settlement system and many banks for settling bilateral TEP and EPCG to be available in case Agarwal, there depositors willing rates have they
the dollar, British pound, euro and yen, for international trade, where invoic- trade in the rupee, and it is taking time the trade is settled in rupees. could be com-
pression in net
to park their funds gone up. So, aver-
while the rupee is not a freely converti- ing, payment, and settlement of as the process involves a lot vetting at Imports from Russia grew by 414% in age cost of funds
ble currency. With the clarification, the exports and imports to all countries, on the levels of banks, central banks and of the first five months of the current fis- interest margins for 211 days to less will not go up by
foreign trade policy (FTP) will be cal to $17.23 billion. Although crude over the next 12 than a year 190 bps,” said a
suitably amended to enable FACILITATING TRADE IN RUPEES oil imports accounted for 85% of months as the public sector
exporters to claim export benefits total imports from Moscow, ship- deposit base gets banker on condi-
for settling trade in rupees. THE mechanism is INDIA’S exports to IMPORTS from EXPORTERS say ments of sunflower oil, fertilizers, repriced. tion of anonymity.
“We will come out with a clarifi- aimed to facilitate
trade with countries
Russia have seen the Russia grew by 414%
contraction ease to in the first 5 months
they should be able
to tap benefits from
silver, printed books, coriander Without giving any specific The gap between credit
cation soon… It is a valid issue under sanctions like 4.72% in August from of the current fiscal sop schemes if trade seeds, and furniture items reported guidance, other bankers also growth—still largely retail-
raised by exporters. This is an ena- Iran and Russia the previous year to $17.23 billion settled in rupees a sharp spike, suggesting that New said there are various factors at fuelled—and deposit growth is
bling provision. We are working Delhi was steadily forging trade ties play that will determine mar- at one of the highest ever.
with the ministry of finance with Russia. gins in the coming quarters. For the fortnight ended 7
towards the clarification,” the govern- the central bank’s approval, can be in the governments. According to trade experts, RBI’s Amitabh Chaudhry, chief October, non-food credit rose
ment official cited above said on the Indian rupees. Banks will need RBI According to a study by India’s apex move to allow international business executive of Axis Bank, said 18.4% from a year earlier against
condition of anonymity. approval to use the mechanism. Under trade promotion body Federation of transactions in rupees could also ease some deposits will get repriced, a deposit growth of around
Queries emailed to the department this mechanism, exporters and import- Indian Export Organisations (FIEO), the flow of trade with BRICS nations— and since the overall interest 9.6%, with the latter gradually
of commerce remained unanswered till ers can use a Special Vostro account India’s shipments to sanctions-hit Rus- Brazil, Russia, China and South rates may continue to rise, there declining since the beginning of
press time. linked to the correspondent bank of the sia could grow by another $5 billion Africa—and sanctions-hit Iran but the is a potential in the future that the year.
According to reports, Russia’s Gaz- partner country for receipts and pay- once the rupee settlement mechanism new settlement mechanism may not be the bank’s cost of deposits will Gopika Gopakumar contrib-
prombank has opened a special rupee ments denominated in rupees. becomes functional. It said that agro easy to implement. rise faster than what it has seen. uted to the story.

Fairfax may offload Dabur buys 51% stake in Badshah Govt looks to tap green bonds
stake in Bengaluru FROM PAGE 1 September quarter.
Last week, Hindustan Uni-
FROM PAGE 1 According to India’s apex
power sector planning body
build our foods business,” lever Ltd reported a 4% growth looking to improve energy Central Electricity Authority,
airport for $1.5 bn Mohit Burman, chairman of
Dabur India, said.
The company will leverage
in domestic volumes.
Both companies flagged
high inflation.
intensity in industries and pro-
mote clean technology usage in
them. Programmes to give
by 2030, the country’s power
requirement will be 817GW,
more than half of which would
FROM PAGE 1 documents with the markets its international market pres- Malhotra said inflation has appropriate price signals for be clean energy. Also, accord-
regulator. ence to grow this business glo- been “unprecedented”, while achieving demand-side ing to CEA, the country
In March 2021, Fairfax chair- Fairfax’s stake sale plan bally, Burman said. the demand environment response include ‘perform, requires 27GW of battery stor-
man Watsa said infrastructure could be a part of Fairfax’s Badshah sells more than 50 remains “tepid”. achieve and trade’, a market- age by 2030, with four hours of
was being created to enable larger India consolidation products in India and overseas “We have seen an inflation based energy efficiency trading storage and 10GW of hydro-
BIAL to handle over 90 million strategy, and in line with markets; it has two manufac- of roughly 10% in our domestic mechanism. pumped storage plants (PSP).
passengers by 2034. For this Watsa’s firms’ stake sales in turing facilities, both located The branded spices and business and almost 30% India is working on a State The Centre is trying to leverage To help India’s national grid
expansion, a total investment of other Indian firms over the past at Umargam in Gujarat. seasoning market in India is international business, so it Energy Efficiency Action Plan, India’s hydropower potential to management functions, the gov-
about $2.2 billion is required. year, according to the people “Dabur is acquiring a 51% worth over ₹25,000 crore. hasn’t abated at all. We think the final action plan that will be facilitate the world’s largest ernment plans to call bids for set-
“This investment has not cited above. stake in Badshah for ₹587.52 going forward, it might sof- released in December. energy transition. REUTERS ting up around 4 gigawatt-hour
been fully done yet. That’s In December 2021, Fairfax crore, less proportionate debt kept for acquisition purposes ten,” he said. The government is also try- (GWh) of grid-scale battery stor-
another reason deep-pocketed Group’s Hamblin Watsa as of the closing date, with the only,” he said. The company reported ing to leverage India’s hydro- these projects. age systems at the regional load
players or corporates will have Investment Counsel (HWIC) Badshah enterprise being val- However, he added that in gross margin contraction of power potential to facilitate the Queries emailed to the dispatch centres (RLDCs). India
a better chance of coming in as Asia Fund offloaded IIFL ued at ₹1,152 crore. This trans- the short term, the company 300 basis points on account of world’s largest energy transi- spokespersons of the Union also plans to set up a 14 GWh
the new majority stakeholder Finance Ltd’s shares worth lates to a revenue multiple of would focus on consolidating this inflation, he said. tion, as they offer the ideal solu- ministries of power, new and grid-scale battery storage system
in Bengaluru International Air- over ₹180 crore through an around 4.5X and Ebitda multi- this business. Meanwhile, high prices of tion to peak load. While the renewable energy, finance, and at the world’s largest renewable
port by purchasing a stake from open market transaction and ple of around 19.6X of FY23 On Wednesday, Dabur also goods also impacted con- total hydropower generation Reserve Bank of India on energy park at Khavda in Gujarat
Fairfax,” said the first person. subsequently exited IIFL estimated financials,” the said it recorded a net profit of sumption—this was more pro- potential of India’s north-east- Thursday night remained and invite bids for the largest
Bengaluru International Air- Finance by selling its entire company said. ₹490.86 crore, down 3% from nounced in the rural markets, ern states, and Bhutan, is about unanswered at press time. global tender for setting up a
port, the third busiest airport in 7.48% stake. FIH Mauritius Badshah Masala reported ₹505.31 crore a year ago. with demand growth in the 58GW, most states cannot lev- Energy storage is expected to 13GWh grid-scale battery stor-
India, has the exclusive rights Investments, another unit of sales of ₹189 crore in FY22. Consolidated revenue was hinterland lagging urban mar- erage the potential due to their play a key role in helping India age system in Ladakh.
to carry out the development, Fairfax, now owns 22.3% of Mohit Malhotra, chief exec- up 6% during the period to kets for the first time in five financial inability to put up meet its commitment to net- India plans to leverage carbon
design, financing, construc- IIFL Finance. utive officer, Dabur, said the ₹2,986.5 crore in the second quarters, the company said. their share of equity to build zero carbon emissions by 2070, finance to achieve energy effi-
tion, commissioning, mainte- In the December quarter of company’s appetite for acqui- quarter, largely led by price In the September quarter, these large capital-intensive increasing non-fossil energy ciency. As part of the plan, Lok
nance, operations and manage- 2021, HWIC Asia Fund sold its sitions is intact. hikes. Dabur’s foods and beverages projects. In such a situation, the capacity to 500GW by 2030 Sabha in August cleared amend-
ment of the airport until 2038 entire 4.58% stake in IIFL “We are already on the look- The company reported a 1% business grew 30% over the equity support scheme for and reducing the carbon inten- ments to the Energy Conservation
under a conces- Wealth Manage- out; we have a war chest of increase in quarterly volumes. year, while the home care north-eastern states’ hydro- sity of its economy by 45% from Act to put in place provisions to
sion agreement It is uncertain ment Ltd. ₹5,500 crore. So, that money is It took a price hike of 6% in the business grew nearly 21%. power projects can help set up the 2005 level. make clean energy use mandatory.
with the central whether Fairfax FIH Mauritius
government. will revive the Investments
Fairfax became process to list its holds a 13.61%
the controlling
shareholder of the
airport by buying
flagship airports stake in IIFL
investment firm
Wealth Manage-
ment Ltd now.
Post-pandemic box office recovery flops in smaller towns
a 33% stake for Anchorage On 16 Septem-
$321 million from ber, Mint Lata Jha films, denting their business and we have little to offer emotional connection for
GVK Power and reported that lata.j@htlive.com further or killing their chances them. Plus, everything is avail- viewers in small towns.
Infrastructure in 2016. It subse- Fairfax is looking to sell a NEw DElhI of playing multiple titles able on OTT within a few Hollywood isn’t bringing
quently purchased an addi- majority stake in Fairchem together by asking for maxi- weeks of theatrical release at enough returns either; Garg,

T
tional 5% from Zurich Airport. Organics Ltd, for which Bank of he post-pandemic box- mum shows for their own film. nominal rates when prices for who saw enthusiasm for
Later in 2017, GVK exited the America (BofA) has been hired office recovery hasn’t “It would be fair to say films films like Brahmastra, which superhero film Thor: Love and
airport by selling its residual as an adviser. Fairfax, through been as robust in India’s are not breaking through in also had a 3D version, were no Thunder dip considerably after
10% to reduce debt. FIH Mauritius Investments, smaller towns as it has in big tier-two and tier-three towns less than ₹200,” Garg added. the first few days, didn’t even
In March 2018, Fairfax India holds a 52.8% stake in the spe- cities despite a handful of hits yet, and the reception to While audiences play recent
Holdings bought an additional cialty chemicals firm. like Brahmastra, RRR and recent titles hasn’t been up to have begun to Many single- American titles
6% stake from Siemens Project Fairfax Financial Holdings Gangubai Kathiawadi. Trade the mark,” film producer, look forward to screen owners like Bullet Train
Ventures GmbH for about $67 Ltd, through FIH Mauritius experts and theatre owners say trade and exhibition expert dubbed south say distributors and Resident Evil:
million to become the majority Investments Ltd, holds a these films touted to have Girish Johar said. There was Indian films are refusing to Welcome to Rac-
owner of the airport with a 54% 49.72% stake as a promoter in managed significant revenues, some traction for the super- lately, most were
CSB Bank Ltd.
supply them with coon City, antici-
stake. benefited from high ticket pri- hero flick Brahmastra thanks disappointed by pating negligible
With Fairfax planning to sell Fairfax, through FAL Corp., ces in multiplexes, failing to to the scale of production and the Hindi version films, denting draw for them.
its stake, it is uncertain whether also holds 45% in Go Digit Info- find an audience in tier-two visual effects initially, but Hindi filmmakers have stopped making movies for families in of Mani Ratnam’s their business Pravin Chali-
the company will revive the works Services Ltd, the largest and tier-three cities. On the trade experts like Johar say it small towns, said a 2-screen cinema owner in Muzaffarnagar MINT historical drama kwar, director of
process to list its flagship air- co-promoter of cricketer Virat other hand, small towns con- petered down. Ponniyin Selvan-1 Priti Cinemas in
ports investment firm Anchor- Kohli-backed Go Digit General tinue to be deprived of com- Meanwhile, the other names. stopped making movies for that only made ₹22 crore in the Maharashtra’s Parbani, said
age Infrastructure Investment Insurance, whose ₹1,250 crore mercial mass-market fare, recent star vehicle Vikram To be sure, the potential of families in small towns, said northern belt on its late Sep- nearly 80% of single screens in
Holding Ltd on the Indian IPO plan has been delayed due with Bollywood’s most recent Vedha starring Hrithik Roshan cinemas in small towns is often Pranav Garg, the managing tember release. Garg said even small towns haven’t been able
stock exchanges. to volatile markets. star vehicles, Vikram Vedha and Saif Ali Khan, an urban overlooked. For mass-market director of Maya Palace, a two- a film like Brahmastra bene- to upgrade their infrastructure
Last year, Fairfax announced Fairfax is also a key share- and Doctor G, failing. In fact, thriller, was also targeted at commercial films, small towns screen cinema in Muzaffarna- fited from the traction in and facilities to lure audiences
its intention to launch an IPO holder of the National Stock many single-screen owners multiplex audiences and can contribute over 70% of gar. “We’re constantly getting urban multiplexes, and unlike to these recent films even if
for Anchorage Infrastructure, Exchange (NSE) and Thomas say distributors are either struggled to make it past the overall collections. queries for films to which peo- Baahubali, another film with they did manage to find some
but has yet to file the draft IPO Cook India. refusing to supply them with ₹70 crore mark despite big Hindi filmmakers have ple can bring their families, fantasy elements, there was no appeal.
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 LIVEMINT.COM CORPORATE ThursDay, 27 OcTOber 2022
New Delhi 07

Moonlighting
Would not like to take any Brand Kohli sizzles
is a conflict of
interest: IBM after Ind-Pak T20
to employees more price cuts: Agrawal World Cup thriller
Staff Writer Suneera Tandon regional or smaller players. It’s a paral- Varuni Khosla &
feedback@livemint.com suneera.t@livemint.com lel activity—it’s not that an acquisition Suneera Tandon
new delhI is the way to enter the category.

I
BM has asked its employees Last week, Wipro Consumer Care new delhI

P
to refrain from engaging in a ackaged consumer goods Ventures, the venture funding arm

second job or gig in any
capacity, saying it is against the
terms of employment under the
company’s contract.
“A second job could be full-
time, part-time, or contractual
in nature, but at its core, is a fail-
ure to comply with employment
obligations and a potential con-
flict of interest with IBM’s inter-
est,” Sandip Patel, MD for IBM
India/South Asia region said in a
note to employees. The message
comes amid a raging contro-
versy on moonlighting by pro-
fessionals, forcing Indian IT ser-
vices firms to find ways to iden-
tify employees working on the
sly. Infosys is the only company
to have acknowledged its gig
workforce, allowing them to
work for external jobs and pro-
jects. It told its employees that
they can do gig work, but after
getting requisite permission
from the manager and business
HR. However, the company said
it won’t accept dual employ-
ment or where there is potential
of conflict of interest.
Wipro’s executive chairman
A
company Wipro Consumer of your company, invested in an fter clinching a win
Care & Lighting expects rural Indonesian startup. Closer home, against Pakistan at the
demand to bounce back by are there signs of distress in direct- ICC T20 World Cup
the end of the December to-consumer startups where the thriller, brand Virat Kohli is
quarter, assuming inflation moderates company has investments? likely to rise up the endorse-
by then. In an interview, CEO Vineet I think there’s a trickle-down effect. ment rankings further, adver-
Agrawal said the company posted First, the fact that the IPOs didn’t do tising consultants said.
strong sales growth in the September well. Now, there is a money crunch Despite ruling the rankings,
quarter in its India business. coming in, the late-stage investments the former Indian cricket cap- Brand Kohli has remained
Agrawal said Wipro, that sells San- are seeing the stress. The early (stage) tain’s brand value dipped 21% resilient in recent years. AFP
toor soaps and Yardley talcs, also took investments are still okay. But even in from $237.7 million in 2020 to
price cuts on its soaps in June in the early investments, including our $185.7 million in 2021, said a demand at least for the short-
response to cooling commodity prices. portfolio companies, we’ve clearly told report by Kroll , formerly Duff term with brands like MRF,
Agrawal, however, ruled out any more them that they need to get into a profit- & Phelps, a consultancy. which shot an ad featuring
immediate price cuts, unless prompted able mindset. Earlier, the game was Artimas Fashions Pvt. Ltd, a him on the following day.
by competition. The company sells how do you get a top line. Now, we’re subsidiary of Lux Industries, While a certain section was
fabric cleaners, home care products saying get your unit economics right which retails inner-wear and predicting the end of the road
and personal care brands. Edited and ensure that you don’t burn so sleepwear under Kohli’s One8 for Kohli, the masses had not
excerpts: much (cash). Because you won’t be brand, said it witnessed a 15% lost their respect for him. “One
able to raise money so easily. For us spike in sales after the match. of the brands he endorses was
From an FMCG point of view, is also, we have a limit that we have Kohli’s performance may quick to ride on his success to
there any tightness in rural defined for ourselves, and we don’t ensure more brand endorse- release an ad campaign. Other
demand? want to invest more than ₹25 crore in ments, said industry experts. brands will be quick to ride on
Rural was tight in Q2—there is no a company. When we hit the ₹25 crore- In fact, brands that were con- the wave,” said Deepak Kumar,
doubt. All of us are hoping that Q3 will mark, while we can help them find sidering dropping him will be country head, The Story Lab -
be better, we will have to wait and investors, we can’t fund them any- forced to retract their deci- dentsu India.
watch. I think the bigger issue is that June (in soaps). So, we dropped about the North, you see a lot of Haldiram’s more. sions at least in the near “His brand value is not con-
food inflation has been high, which 5.5-6%. Some stock-keeping units or Bikano but you don’t see that kind How would you sum up the broad future, said San- ditional on one
impacts rural a lot more. I don’t know would have been a little up and down. of player in the South. We believe that consumer sentiment right now? deep Goyal, Brands that good perform-
what the impact of the late monsoon is Ideally, we won’t like to take a (price) there is an opportunity, per se. In I think the premium end is abso- advertiser and were considering ance or one bad
—as far as Uttar Pradesh and parts of drop anymore—we are still carrying a foods, especially in snacks, unlike per- lutely okay. In fact, I think the pre- m a n a g i n g dropping Kohli performance; it’s

Rishad Premji has also likened
moonlighting to cheating. The
company has also fired 300
employees who were caught
moonlighting for rivals.
HCL also has similar reserva-
tions. “We do not approve of
dual employment while work-
ing for HCLTech. Everybody
who is signing up to work for
HCLTech is signing a contract
which requires exclusivity, has
requirements of confidentiality
and non-solicitation, non com-
pete, those provisions which are
there,” Ramachandran Sunda-
rarajan, chief people officer,
HCL Tech said during the firm’s
quarterly results announce-
ment.
‘
Bihar are concerned, where they lost little bit of old price stocks. But yes, if sonal care, more than the advertis- mium or discretionary is a bounce- director, Rediffu- will be forced to his consistency
crops. But my sense is, historically, competition takes it up aggressively, ing or positioning, it is back because of the sion. and ability to stay
retract their
when such things happen, the impact we’ll have no option but to take it up. more critical to get fact that they hadn’t Independent positive even in
is not very much. There’s no official Soaps was one category where price the product right— I believe that bought too much in consultant Har- decisions, at least adverse situa-
word on it. But, yes; that can be a hikes were also higher—so wherever the taste palate is crit- inflation will get the last two years. I ish Bijoor said if in the near future tions that defines
dampener, per se. we took sharp price ical. We’re looking at controlled in the next also sense that in the King Kohli con- him,” said Arti-
But I believe that the m INTERVIEW increases, we took a traditional snacks, we last two years, people tinues with his mas managing
inflation will get con- drop. are very clear. The two-to-three months, did not go out so form for the remainder of the director, Nischal Puri. How-
trolled in the next two- The company second part is that we and rural demand much, and therefore, tournament, he will have more ever, since the win against
to-three months so rural demand recently announced its entry into have got the distribu- should pick up at the more affluent brands vying for him. “All Pakistan was during the week-
should pick up—if not now, I suppose the packaged snacks market. tion. We’ll start off end, there was a lot brand endorsers are as good as end and Diwali was on the fol-
Vineet Agrawal
by the end of the December quarter. What is the larger plan there? likely from the South CEO, Wipro Consumer Care & more of cash availa- their game. New brands will lowing day, client interest
We did well in Q2 where the India Our thought there is very simple: we and then we’ll see Lighting ble. Even the upper queue up for him as they tend can’t be gauged in such a short
FMCG business grew 19.5%. Totally we believe there’ll be a lot of change from how we move. middle class is OK. I to punt on such developments. time, Rediffusion’s Goyal said.
grew 20.8% in the same period. unorganized to organized brands. The Will you look at think it’s the middle Therefore, one can expect Vinit Karnik, head of enter-
Your competitors announced sense is that our biggest category is acquisitions in the category? class and the poor which have been brands to lay advance bets on tainment, e-sports and sports,
price cuts on some products such toilet soaps, that’s about ₹21,000 We will look at acquisitions in tradi- really badly hit. In fact, I think (with) him.“ GroupM South Asia, said
as soaps—did you initiate price crore; but something like traditional tional snacks. But there are not the poor, especially the village poor, Communication strategy brand Kohli has remained
cuts too? snacks in India is close to ₹70,000 enough players there. The way we are their savings got affected if they had a consultant Karthik Srinivasan resilient in recent years,
We did take a price cut at the end of crore. And it’s largely unorganized. In looking at it is, we are looking at covid case in their house. said Kohli will be in greater despite his lean patch.

Dabur India Limited

Regd. Office: 8/3, Asaf Ali Road, New Delhi -110 002
CIN: L24230DL1975PLC007908, Tel No. 011-23253488, Fax No. 011-23222051
Website: www.dabur.com e-mail: corpcomm@dabur.com
( in crores, except ratios)
Extract of unaudited consolidated financial results for the quarter and half year ended 30 September 2022
S. Particulars Quarter Half year Corresponding Previous
No. ended ended quarter ended year ended
(30.09.22) (30.09.22) (30.09.21) (31.03.22)
1 Revenue from operations 2,986.49 5,808.92 2,817.58 10,888.68
2 Net Profit for the period / year (before tax, exceptional items and 638.49 1,202.95 661.55 2,355.48
share of (loss) / profit of joint venture)
3 Net Profit for the period / year before tax (after exceptional items 638.15 1,202.27 661.13 2,268.68
and share of (loss) / profit of joint venture)
4 Net Profit for the period / year after tax and share of (loss) / profit 490.86 931.92 505.31 1,742.30
of joint venture
Consolidated Q2 5 Net Profit for the period / year after tax (after non controlling 490.06 930.38 504.35 1,739.22
Consolidated Q2
Revenue 3-year interest and share of (loss) / profit of joint venture)
Revenue Up
CAGR of 6 Total Comprehensive Income for the period {comprising profit 510.97 883.90 532.17 1,650.02
6% 10.5% for the period / year (after tax) and other comprehensive income
(after tax) }
7 Paid-up equity share capital (Face Value of 1 each) 177.18 177.18 176.79 176.79
8 Reserves (excluding Revaluation Reserve) 8,632.77 8,632.77 7,962.36 8,204.51
9 Securities Premium Account 520.95 520.95 380.59 380.59
10 Net worth 8,809.95 8,809.95 8,139.13 8,381.30
11 Outstanding Debt 1,068.11 1,068.11 818.49 1,030.10
12 Debt Equity Ratio 0.12 0.12 0.10 0.12
13 Earnings per share (Face value of 1 each) (not annualised)
(a) Basic 2.77 5.25 2.85 9.84
(b) Diluted 2.76 5.24 2.85 9.81
14 Debt Service Coverage Ratio 32.40 31.19 40.40 34.50
15 Interest Service Coverage Ratio 48.09 50.29 88.67 68.57
16 Other Equity 8,632.77 8,632.77 7,962.36 8,204.51

Notes:
1. Additional information on standalone financial results is as follows:
Particulars Quarter ended Half year ended Corresponding quarter Previous year ended
(30.09.22) (30.09.22) ended (30.09.21) (31.03.22)
Revenue from operations 2,266.88 4,446.61 2,119.89 8,179.50
Profit before tax 525.64 986.57 534.02 1,896.31
Profit after tax 395.81 745.89 395.16 1,432.93
2 . The above is an extract of the detailed format of unaudited consolidated financial results for the quarter and half year ended
30 September 2022 filed with the stock exchanges under Regulation 33 and 52 of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015. The full format of the standalone and consolidated financial results for the quarter and half
year ended 30 September 2022 are available on the Stock Exchange websites (www.nseindia.com and www.bseindia.com) and
Company’s website (www.dabur.com). For and on behalf of Board of Directors
Mohit Burman
Place: New Delhi Chairman
Date: 26 October 2022 DIN : 00021963

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TWEETS & QUOTES

Paul Krugman Gita Gopinath Simon Stiell
Sonia Gandhi @paulkrugman @GitaGopinath Head, the UN climate office
Congress leader Author First Deputy MD, IMF We are still nowhere near the
I have full faith that the Mortgage applications are It’s a special Diwali scale & pace of emission
party will get inspiration down 70%, so a large hous- this year as the UK reductions required to put us
from Mallikarjun Kharge ing slump is already baked has its first Prime on track toward a 1.5 degrees
& the party will be con- in. If it hasn’t shown up yet, Minister of Indian Celsius world...governments
stantly strengthened just wait origin need to strengthen their cli-
under his leadership mate action plans

Hero MotoCorp to SYNCHRONISED SKILLS Tax return filing

enter Philippines due date extended

T T
wo-wheeler maker Hero MotoCorp on he Central Board of Direct Taxes (CBDT)
Wednesday announced its plans to enter has extended the due date for filing tax
the Philippines for which it has partnered returns by certain taxpayers including
with Terrafirma Motors Corporation for companies for the assessment year 2022-23 by
assembly and distribution of its vehicles. a week, showed an official order.
A part of the Columbian Group of The extension of the due date is applicable to
Companies, Terrafirma Motors Corporation entities including companies, persons whose
(TMC) will be the exclusive assembler and books of accounts need to be audited and a
distributor of Hero MotoCorp motorcycles in partner of a firm whose accounts need to be
the Philippines, the company said in a audited. CBDT said that the extension of the
regulatory filing. due date by a week was made because extra
TMC will set up an assembly facility of time of up to 7 October was granted for filing
29,000 square metres in its existing principal various audit reports in the case of these
manufacturing facility situated in Laguna City entities.
and will start its operations in the second half of Accordingly, their due date for filing income
fiscal year 2024, it added. tax returns has been extended from 31 October
TMC Chairman Bienvenido Sanvictores to 7 November, CBDT said.
Santos said the partnership will enable the The due date for filing personal income tax
company “to deliver modern, technologically returns was over by end of July, without any
superior and eco-friendly mobility solutions to extension. GIREESH CHANDRA PRASAD
our customers here”. PTI

The President’s Bodyguard during a full dress rehearsal a day ahead of the presentation of Silver Trumpet and Trumpet Banner by President
Droupadi Murmu, at the forecourt of Rashtrapati Bhawan in Delhi on Wednesday PTI

Boeing reports deeper loss on Micafungin injection is indicated to treat a variety

of fungal infections. MINT
Mustard hybrid DMH-11 developed by CGMCP.

Govt seeks release

AFP

charges in defence business Zydus gets nod to

market Micafungin
of GM mustard
Z
ydus Lifesciences on Wednesday said it

T
he Genetic Engineering Appraisal
Committee (GEAC) under the Union
environment ministry has recommended
the environmental release of genetically
modified mustard which, according to experts,
paves the way for its commercial cultivation.
The move comes amid opposition from
has received final approval from the US
Boeing is required to absorb cost increases due to inflation in several fixed contracts health regulator to market its generic
Micafungin injection, used to treat a variety of
fungal infections.
Reuters The latest writedown came a day Boeing has bly not,” analysts at Agency Partners said in a The approval granted by the US Food and
feedback@livemint.com appointed a senior troubleshooter Steve Parker note. The company further cut estimates for 737 Drug Administration (USFDA) to market
to help turn around loss-making programmes in MAX deliveries this year. It now expects to deliver Micafungin for Injection is for strengths of 50

B
green groups which say commercial
cultivation of GM mustard could have an
adverse impact on human health and food
security.
According to minutes of the 18 October
meeting, the GEAC, the country’s regulator for
genetically modified organisms,
recommended the “environmental release of
mustard hybrid DMH-11 for its seed production
and testing as per existing ICAR guidelines and
other extant rules/regulations before
commercial release”.
The transgenic mustard hybrid DMH-11 has
been developed by the Centre for Genetic
Manipulation of Crop Plants (CGMCP) at Delhi
University. The government has so far
approved (in 2002) only one GM crop, Bt
cotton, for commercial cultivation. PTI
oeing Co on Wednesday unexpectedly
reported a deeper loss in the third
quarter as cost overruns led to heavy
losses at its ailing defence business,
underscoring the challenge the com-
pany faces in turning around its fortunes.
The Virginia-based planemaker is trying to
emerge from overlapping crises, the pandemic
and the grounding of its best-selling model after
fatal crashes, which have left it with a pile of debt.
However, a run-up in costs in Boeing’s defence
contracts along with persistent supply-chain con-
straints and regulatory hurdles have made it
tougher to shore up its fortunes.
In the quarter through September, the com-
pany reported a $2.8 billion charge on its Air
Force One and refueling tanker programme,
among others.
its defence unit. Rising cost pressures over the last 375 planes this year, lower than an earlier target mg/vial and 100 mg/vial, single-dose vials,
few months have hampered fixed-price contracts of “low 400s.” Zydus Lifesciences Ltd said in a regulatory
for US aerospace and defence firms, prompting an Chief cxecutive Dave Calhoun said he is confi- filing. Micafungin for injection is indicated to
industry body to ask dent the plane- treat a variety of fungal infections. It is also used
the US Congress for maker will get an to prevent fungal infections in patients who are
inflationary relief. A run-up in costs in defence deals, extension from the having a stem-cell transplant. “The drug will be
Since these con- persistent supply-chain constraints US Congress of a key manufactured at the group’s injectable
tracts tend to have deadline to get the manufacturing facility at Jarod, near Vadodara,
fixed prices, Boeing and regulatory hurdles have made it MAX 7 and MAX 10 India,” it added.
is required to absorb tougher to shore up its fortunes certified. Adjusted Micafungin for injection had annual sales of
cost increases. loss per share in Q3 $99 million in the US, the company said citing
Agency Partners widened to $6.18 IQVIA MAT August 2022 data. PTI
estimates the company’s various fixed price from $0.60 a year ago. Quarterly revenue rose 4%
defence contracts have already resulted in of $8.8 to $15.96 billion. Boeing’s shares were down 1.7%
billion of charges. at $144.55 in morning trade. Demand at the global
“Every quarter, one hopes that the programme services business that provides spare parts and
specific bad news has come to an end, but then we services such as jet conversions was a bright spot
India an important
get another instalment – maybe this is It? Proba- in the quarter, with revenue rising 5%.
vax producer: US

I
ndia is an important manufacturer of vaccines
Navy, DFI to work for the world, the White House said,
Govt nudges LIC to tweak strategy acknowledging the crucial role the country
on maritime drones played in supplying vaccines against covid-19
globally. “Because of its incredible
LIC has been trading below the issue manufacturing capacity, (India) has been a

I
ndian Navy and Drone Federation of India
(DFI) will collaborate for the indigenous
development, manufacturing, and testing of
drone, counter-drone, and associated
technologies for the Navy.
Under this, the technology development &
acceleration cell of the Naval Innovation
Indigenisation Organization under the Indian
Navy and DFI will increase the Navy-industry-
academia synergy, source technology
development challenges towards component
indigenization. A special maritime drone
testing site shall also be earmarked for the
Indian drone industry to facilitate faster
development and testing of drones especially
LIC has been trading below the issue price
of ₹949 a share.
price of ₹949 a share ever since it got listed
on stock exchanges on 17 May. It listed at
₹872 apiece on NSE.
On Tuesday, the scrip settled at ₹595.50,
down 0.72% over the previous close.
Foreign brokerages, however, remain
bullish on LIC setting a higher target price
over the next year as they feel that the
insurer has good medium-term market
potential, negligible high risk assets and
robust core operating return on embedded
value (ROEV).
Citi in a research report dated 14 October
PTI set a target price of ₹1,000 for LIC scrip,
saying LIC is ‘positioned better than
major exporter of vaccines,” Dr Ashish Jha,
White House Coronavirus Response
Coordinator, told reporters at a news
conference on Tuesday. Responding to a
question, Dr Jha said the QUAD partnership on
coronavirus was important to the Joe Biden
administration. “I think India is an important
manufacturer of vaccines for the world. I mean
not just for India itself, this is a really important
thing,” he said. Defending the Biden
Indian Space Research Organization chairman S. administration’s decision to supply vaccines to
Somanath. PTI the world, Dr Jha said the US will continue
making them available for every low and several
India to expand low- and middle-income countries. PTI

T NaVIC: ISRO chief

in maritime environments, the Drone
Federation said in a statement. Additionally,
programmes on sensitization and skill
development shall also be undertaken. India’s
domestic drone manufacturing industry,
which is seeing increasing interest from a wide
range of sectors, holds potential to be worth
he government is nudging Life
Insurance Corp. of India (LIC) to
tweak its product strategy to
maximize profitability in a bid to help the
country’s largest insurer realize its full
growth potential and yield better returns
for investors, an official said.
mature global players’.
The finance ministry in its performance
review has been sensitizing the LIC
India not for levy on
I
management about the steps that could be ndia plans to expand its regional satellite
taken to better investor wealth and focus
on non-participating products or term
navigation system Navigation with Indian
Constellation (NaVIC) in a bid to increase its Chinese chemical
plans to improve profitability. PTI use in the civilian sector and also by ships and

₹1.8 trillion in the next eight years. ANU SHARMA aircraft travelling far from the country’s borders.
The NaVIC uses seven satellites to provide
real-time positioning and timing services in
India and an area extending up to 1,500 km from
Two more Indian beaches receive ‘Blue Flag’ certification the country’s borders.
However, several satellites of the
constellation have outlived their lives and the
I
ndia will not impose anti-dumping duty on a
Chinese chemical used in pharma industry as
the finance ministry has not accepted the
recommendations of Directorate General of
Trade Remedies (DGTR) for imposing the levy.
The commerce ministry’s investigation arm
DGTR had conducted a probe into the alleged

T
wo Indian beaches, Minicoy Thundi beach and Kadmat beach, located in Indian Space Research Organization (ISRO) dumping of “(4R-Cis)-1-1-Dimethylethyl-6-
Lakshadweep, have received the International eco-label ‘Blue Flag’, the now plans to replace at least five of these with cyanomethyl-2, 2-dimethyl-1, 3-dioxane-4-
ministry of environment, forest and climate change said in a press release the improved L-Band, which would enable it to acetate” from China, and in August it
on Wednesday. offer better global positioning services to the recommended the imposition of the duty.
“Two more Indian beaches have made it to the list of Blue Beaches. Minicoy, public. “We have five more satellites in “The central government, after considering
Thundi Beach and Kadmat Beach—both in Lakshadweep—are the proud production, they have to be launched the final findings of the designated authority
entrants in the coveted list of Blue Beaches, an eco-label given to the cleanest periodically to replace the defunct satellites. (DGTR), has decided not to accept the ...
beaches in the world,” said Union environment minister Bhupender Yadav. The new satellites will have L-1, L-5 and S Band,” recommendations,” a memorandum of
With the new additions, the number of beaches certified under the Blue Flag ISRO chairman S. Somanath told PTI in an Department of Revenue said.
Certification is 12. interview. Somanath was speaking on the While DGTR recommends the duty, the
“Together the two beaches have taken India’s tally of Blue Beaches to 12. This sidelines of the India Space Congress organized department of revenue takes the final decision
is part of India’s relentless journey towards building a sustainable environment by the SatCom Industry Association. He said the to impose it. This chemical is also known as ATS-
led by PM Modi,” the minister added. NaVIC system was not in a “full-fledged 8, which is a key raw material for manufacturing
Prime Minister Narendra Modi congratulated the people of Lakshadweep operational regime” as some of its seven Atorvastatin active pharmaceutical ingredient.
for the achievement. PTI Union environment minister Bhupender Yadav. PTI satellites have failed. PTI PTI

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New Delhi 09

m MINT SHORTS
Google agrees to reforms to
UK’s new PM delays Seagate to cut 3,000
jobs in restructuring
prevent search warrant data loss
Washington: The US Justice Department said on Tuesday it had
reached an agreement with Alphabet Inc’s Google resolving a
dispute over the loss of data responsive to a 2016 search warrant.
crunch budget plan as demand slows
The government said it was a “first-of-its-kind resolution” that Bloomberg
would result in Google reforming “its legal process compliance feedback@livemint.com
program to ensure timely and complete responses to legal pro-
There will be a full budget statement on 17 Nov, said finance minister Hunt
S
cess such as subpoenas and search warrants.” REUTERS eagate Technology
Holdings Plc, the biggest
maker of computer hard
ESPN sells majority interest AFP drives, said it’s cutting about
feedback@livemint 3,000 jobs in a restructuring
in iconic X Games brand London plan aimed at reducing costs
amid slowing demand and said

ESPN has sold its majority stake in the X and Winter X
Games on Wednesday, marking the end of a nearly three-
decade chapter during which the network helped propel
snowboarding, skateboarding and other action sports out
of the fringe and into the mainstream. Terms of the sale to
MSP Sports Capital, a sports-focused private equity firm
that also has stakes in McLaren Racing and a handful of
European soccer teams, were not released. ESPN will
remain a minority partner in the events and will continue
to televise them. AP
US goods-trade deficit widens
for the first time since March
The US merchandise-trade deficit widened in September for the
first time in six months as imports grew and some exports
plunged. The shortfall widened 5.7% to $92.2 billion last month,
Commerce Department data showed on Wednesday. The fig-
ures, which aren’t adjusted for inflation, compared with a median
estimate for a gap of $87.5 billion in a Bloomberg survey of econo-
mists. Exports declined 1.5% to $177.6 billion. Imports rose to
$269.8 billion, also the first increase since March. BLOOMBERG
Deutsche Bank net profit soars
five-fold in the third quarter
Berlin: Germany’s biggest lender Deutsche Bank on Wednesday
said its third-quarter net profit had risen more than five-fold
year-on-year, far better than expected, as a restructuring pro-
gramme bears fruit. The group’s net profit between July and Sep-
tember reached 1.1 billion euros, compared to 194 million eurosa
year ago, it said in a statement. AF
B
ritish Prime Minister Rishi big buyers of technology are
Sunak on Wednesday post- cutting orders on concerns the
poned an eagerly awaited bud- economy is worsening.
get plan due next week, as the “Global economic uncer- The firm’s first-quarter results
youthful new leader got down tainties and broad-based cus- showed that it missed analysts’
to business after weeks of political tur- tomer inventory corrections expectations. BLOOMBERG
moil. worsened in the latter stages of
Following a meeting of his new cabinet, the September quarter, and tor technology.
Sunak engaged in his first parliamentary these dynamics are reflected “Seagate’s position that it
joust with opposition Labour leader Keir in both near-term industry did not engage in prohibited
Starmer, who is demanding a snap general demand and Seagate’s finan- conduct as alleged by the
election. cial performance,” chief exec- Bureau of Industry and Secu-
Sunak, 42, ruled out an early election — utive officer Dave Mosley said rity, because, among other
not due for at least two years — as he in a statement. “We have taken reasons, Seagate’s HDDs are
vowed stability and fiscal rectitude follow- quick and decisive actions to not subject to the Export
ing his appointment by King Charles III on respond to current market Administration Regulations,”
Tuesday. He succeeds Liz Truss, who conditions and enhance long- the company said in a regula-
served just 49 days in Downing Street. PM Rishi Sunak, ruled out an early election — not due for at least two years. BLOOMBERG term profitability, including tory filing.
“We will have to take difficult decisions adjusting our production out- The company also released
to restore economic stability and confi- Instead, there will be a full budget state- Markets were unperturbed by the post- put and annual capital fiscal first-quarter financial
dence,” Sunak told MPs at his first “Prime ment on November 17 to lay out the new ponement, suggesting Hunt and Sunak expenditure plans.” results that missed analysts’
Minister’s Questions”. government’s tax and spending plans, have successfully calmed investor nerves. Separately, expectations.
He added that his Chancellor of the Hunt told reporters. Truss left office as the UK’s shortest- Seagate said it has Seagate has Sales in the
Exchequer Jeremy Hunt would set out a “Now, we have a new prime minister serving premier in history, replaced by its been accused by already warned period ended 30
detailed plan “in just a few weeks”. “What and the prospect of much longer-term sta- youngest since 1812 and first Hindu leader. the US Com- investors that September were
I can say, as we did during Covid, we will bility for the economy,” he said, stressing Sunak triumphed in a 96-hour Tory merce Depart- demand is drying $2.04 billion,
always protect the most vulnerable, we the new plan would be accompanied by leadership contest after rival contender ment of violating missing analysts’
up after several
will do this in a fair way,” fresh economic forecasts Penny Mordaunt failed to secure enough US export rules average estimate
Sunak insisted. Markets were from the Office for Budget nominations from Tory lawmakers and by selling hard quarter of rapid for $2.12 billion,
Starmer repeated his unperturbed by Responsibility (OBR). Johnson dramatically aborted his own drives to a sanc- growth the Fremont, Cal-
demand for an election, this news, Hunt said he had discussed bid. tioned entity. ifornia-based
accusing Sunak of lacking suggesting Hunt the delay with Bank of After appointing his top team Tuesday, Reuters reported company said in
legitimacy after he was England governor Andrew Sunak spoke to the presidents of Ukraine that the entity was Huawei the statement early Wednes-
and Sunak have
“trounced” by Truss in the Bailey. The central bank was and the United States to vow continuity on Technologies Co. The com- day. That compares with an
summer’s Conservative lead- successfully forced to make several emer- UK foreign policy, including ongoing sup- pany denied it violated the average analyst estimate of
ership run-off. calmed investors gency interventions in recent port for Kyiv’s resistance following Rus- rules. The US company’s push $2.2 billion. Adjusted earnings
“So why doesn’t he put it to weeks after Truss’s now sia’s invasion. Sunak has vowed to restore back may prove a test of tight- per share were 48 cents, far
the test, let working people aborted tax-slashing plans “trust” and “integrity” in government after ening restrictions against the below estimates for 75 cents.
have their say and call a general election?” financed by extra borrowing sent markets months of tumult under scandal-tarred provision of technology to The shares fell more than 9%
Starmer asked, to cheers from the opposi- into a tailspin. Johnson and then Truss. China by the Biden adminis- in early trading in New York
tion benches. The delay would ensure the budget can But critics claimed the new leader had tration, which has cited and have lost almost half their
Finance minister Hunt — retained in “stand the test of time” to give British immediately undermined the pledge by national security concerns in value this year. Like many of
Sunak’s cabinet along with several other mortgage holders and businesses more re-appointing hardline right-winger actions its taken against com- its peers, Seagate has already
senior ministers — said that Monday’s assurance, Hunt said, after the Truss plan Suella Braverman as interior minister, panies such as Huawei. warned investors that demand
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 10 ThursDay, 27 OcTOber 2022
New Delhi
The buildings of IIT Madras Research Park have been designed by renowned architect Hafeez Contractor. However, professor Ashok Jhunjhunwala (in picture) is the mastermind who conceived and built the institution.
Leslie D’Monte
leslie.d@livemint.com
cHeNNAi
F
ourteen years ago, a 22-year-old
tech entrepreneur, Umesh Sach-
dev, was struggling to sell his
mobile location-based product to
telecom service providers and
SIM card manufacturers. He could not fig-
ure out why the product wasn’t clicking
with potential clients. He, and co-founder
Ravi Saraogi, serendipitously got in touch
with Ashok Jhunjhunwala, a professor
teaching at the Indian Institute of Tech-
nology, Madras (IIT-M).
“Prof. Jhunjhunwala did not take more
than 15 minutes to tell us what was wrong
with our business plan,” says Sachdev,
now the co-founder and CEO of conversa-
tional automation platform Uniphore.
The rest, as the cliché goes, is history.
Uniphore, today, is a $2.5 billion uni-
corn, or a startup valued at $1 billion or
more. “He (Jhunjhunwala) was one of
our first mentors who taught us to be
prudent and resourceful; showed us how
to build a business; develop technology,
and (told us) to never be complacent,”
says Sachdev.
In 2010, Jhunjhunwala set up the IIT
Madras Research Park, a first of its kind
non-profit organisation in India, to pro-
mote industry-academia collaboration
and commercialize research and develop-
ment (R&D) efforts, particularly, around
deep technology—deeptech firms often
innovate at the convergence of cutting-
edge technologies and fields that can
include advanced materials and advanced
manufacturing.
Uniphore became the first startup to set
up office in the park.
Five years later, in 2015, two tech entre-
preneurs—Tarun Mehta and Swapnil
Jain—both alumni of the department of
engineering design of IIT-M, uncorked
the bubbly at the very same research park.
They had just received a $1 million seed
funding from Flipkart founders Sachin
Bansal and Binny Bansal for their proto-
type of an electric scooter with a lithium-
ion battery. We know this startup as Ather
Energy today. The company is now within
striking distance of being a unicorn, hav-
ing recently raised about $50 million in
October, a funding round that valued it at
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RePoRTAge
THE INCUBATOR
of DReAMS
The IIT Madras Research Park has incubated nearly 300 startups. What makes it so successful?
$700-800 million, according to regula-
tory filings sourced by business intelli-
gence platform Tofler.
Uniphore and Ather Energy are well-
known. There are scores of unknown
ones here. About 280 startups have been
incubated at the incubation cell of the
IIT Madras Research Park, thus far. The
park is also home to more than 100 R&D
companies, and nine centres of excel-
lence (COEs).
About ₹500 crore has been invested in
the park till date. It received a seed fund-
ing of ₹100 crore from the IIT-M alumni as
well as a subsidy from the government.
Rest of the capital was borrowed from
banks—the institution has paid it back.
Today, it is debt free and cash positive.
The park started with just 10-15 compa-
nies. Today, it has three buildings and no
room to spare. Such has been the demand.
The cumulative revenue of all the startups
in the park is currently estimated at
₹1,600 crore, while their total valuation is
more than ₹33,000 crore.
This is the story of a spectacular suc-
cess, and one that rode on one man’s zeal
to press the accelerator on an ecosystem
that fosters deeptech companies. The
Indus Entrepreneurs (TIE), a Silicon Val-
ley non-profit that supports startups, even
conferred on Jhunjhunwala the title of
‘Dronacharya’.
Deeptech at play
J hunjhunwala is president of both the
IIT Madras Research Park and the IIT
Madras Incubation Centre. V. Kamakoti,
director of IIT-M, is also on the board of
directors of the park, spread across 11.42
acres and with over 1.2 million square feet
of workspace.
Jhunjhunwala commutes to the park
from the far end of the IIT-M campus, one
built around a forest—it is common to spot
deer frolicking alongside students.
But Jhunjhunwala is quick to point out
that the two institutions are separate. “We
are not situated on the campus of IIT-M.
Around 2007, we decided that we need a
place where industry, academia and
youngsters can innovate. But we also
wanted a place that was a cycling distance
from IIT-M so that we can foster industry-
academia collaboration,” he says.
A bridge connects IIT-M with the Park.
It is well known as the ‘Industry-Acade-
LONG STORY
| TAlkIng PoInTS | IDeAS
mia’ bridge, underlining the strong bond
between the two institutions.
Here’s an example. When researchers
from the IIT-M recently developed a new
touchscreen display technology that
allows a user to feel the textures from
images as the finger moves across the
touch surface (unlike existing touch-
screens that can only sense the location of
the finger touch), they needed to take the
product to market from the R&D stage.
Merkel Haptics, a startup incubated at the
IIT Madras Research Park, stepped in to
convert the prototype into a product that
may resemble a computer mouse, and
enhance user experience.
Similarly, the prototype of the ePlane
was developed by the ePlane Company,
again incubated at the IIT Madras Incuba-
tion Cell. Co-founded by IIT-M professor
Satyanarayanan Chakravarthy, the plane
is a compact electric vertical take-off and
landing (eVTOL) aircraft with a five-metre
wingspan. It is five metres from nose to tail
and is a two-seater. Yet to be commercially
launched, it is designed to be India’s first
electric flying taxi.
Other startups incubated here include
Stellapps, co-founded by Ranjeet Mukun-
dan. It is the country’s first dairy internet
of things (IoT) startup—it works at opti-
mizing the supply chain for dairy farms
and cooperatives. Planys, co-founded by
Tanuj Jhunjhunwala, is building a smart
underwater inspection solution. Agnikul
Cosmos, founded by Srinath Ravichan-
dran, is developing satellite launch vehi-
cles for a payload capacity of up to 100 kgs.
In July, the startup announced the launch
of Rocket Factory-1, which it touts as the
country’s first-ever rocket facility dedi-
cated to 3D printed rocket engines.
“We are focused on deeptech startups,
since there are very few in the country. As
you succeed, other institutions will try to
emulate you,” says Jhunjhunwala.
Indeed, in March 2018, the government
approved setting up of eight additional
research parks—one each at IIT Kharag-
pur, IIT Bombay, IIT Gandhinagar, IIT
Delhi, IIT Guwahati, IIT Kanpur, IIT
Hyderabad, and the Indian Institute of
Science (IISc) in Bengaluru.
Making the cut
H ow do entrepreneurs reach out to
the IIT Madras Research Park if they
| InSIghT | The boTToMlIne
mint
SHORT
STORY
WHAT
In 2010, Ashok Jhunjhunwala
set up the IIT Madras Research
Park, a first of its kind non-profit
organization, to promote
industry-academia collaboration
and commercialize R&D efforts.
AND
The park now wants to create an
ecosystem of deeptech
companies. It started with just
10-15 startups. Today, it has three
buildings and no room to spare.
Such has been the demand.
NOW
The next target is to
press the accelerator on
areas where India can be a
leader. Technologies for
climate change or net zero
emission is one of them.
wish their startup to be incubated there?
“You can reach out to us in a formal or
even informal manner,” says Tamaswati
Ghosh, CEO of the IIT Madras Incubation
Centre.
The centre, next, evaluates what the
founders do, the business idea, and
whether it’s scalable. Can it be commer-
cialized? “Every quarter, we get about
300-400 applications. About 20-25% of
the applications get converted into incu-
bation,” Ghosh explains.
Ghosh points out that the park not
only houses the startups, but also about
nine COEs that are run by IIT-M faculty
members. About 80 small, medium, and
large multinationals have set up their
R&D centres at the park. They have all
helped create an innovation ecosystem
that is unique.
“The key condition for anybody want-
ing to rent space is that they have to work
with the academia. Some sort of collabora-
tive work with the campus community—
be it working with faculty, or working with
students of IIT-M, and even their own
employees taking up courses at IIT-M. All
this is measured throughout their stay in
the park,” says Ghosh.
One company in the park is public sec-
tor giant Bharat Heavy Electricals Ltd
(BHEL). It has completed over 60 projects,
33 of which have been implemented com-
mercially.
India’s largest IT services exporter Tata
Consultancy Services collaborates with
IIT-M on data centre power reduction,
reducing energy consumption in build-
ings, and developing a smart water net-
work. Saint Gobain Research India has
undertaken 22 R&D projects with IIT-M
faculty and students, 20 of which have
been launched as profitable products and
solutions in the market. Titan Industries
Innovation Hub’s partnership with the
IIT on material characterisation and coat-
ing, etc., has resulted in the generation of
five patents.
The COEs, on the other hand, include
the Centre of Battery Engineering and
Electric Vehicles (C-BEEV); the Centre
for Technology and Policy (CTAP); the
Centre for NEMS and Nanophotonics
(CNNP); the Centre for Computational
Brain Research (CCBR); the Health Care
Innovation Centre (HTIC); IIT Madras
Bioincubator and the Robert Bosch
Centre for Data Science and Artificial
Intelligence.
One of the main areas of focus for
C-BEEV, for instance, is to focus on bat-
tery technology and battery engineering
to suit Indian conditions. The E-rickshaw,
developed by the centre, is a case in point.
It is a testing prototype by Lohia Auto, a
Delhi-headquatered maker of electric
vehicles and is fitted with a battery devel-
oped at CBEEV.
CCBR, meanwhile, is developing a solu-
tion to study the cellular architecture,
connectivity and molecular architecture
in human brains—an effort supported by
the Indian government along with contri-
butions from Kris Gopalakrishnan,
co-founder of Infosys, and also an alum-
nus of IIT-M.
HTIC, too, is a multi-disciplinary R&D
centre and a joint initiative between IIT-M
and the Indian government’s department
LIVEMINT.COM
of biotechnology, to develop healthcare
technologies for the country.
Yet another COE focuses on machine
tools and production technologies. It
has “identified 11 projects which, if
developed in India, will boost the capital
goods sector”, said the COE spokesper-
son. The centre, for instance, is develop-
ing a hydrostatic bearing technology,
which can be used as a high-pressure
machine tool for auto components. Cur-
rently, India imports these machines or
imports the concepts needed to build
this technology.
Way forWarD
J hunjhunwala, meanwhile, is not will-
ing to rest on past laurels. Around two
years back, the board of IIT Madras
Research Park “challenged us to make
new plans for 2030”, says the professor.
“We do 45 incubations per year. The
target is now 1,000 incubations. This
seems impossible. So how do you do it?
You can do it by not limiting yourself to
IIT-M. We now plan to approach 50-100
engineering colleges, bring them here,
and make them as successful as the ones
we have here,” he explains.
The next target, he adds, is to press the
accelerator on areas where India can be a
leader. What are those? Technologies for
climate change or net zero emission;
assistive technologies; fintech for inclu-
sion, since 85% people in this country
have income less than ₹25,000 a year.
Jhunjhunwala also wants to identify
and nurture 500 technology leaders every
year. “We call them Ranchos (the nick-
name of Aamir Khan in the Hindi movie 3
Idiots) and make them the world’s best,”
he says.
Jhunjhunwala appears to be a cine-
phile. His current inspiration is two dia-
logues from Shah Rukh Khan’s hit film Om
Shanti Om. Here’s one of them:
“Kehte hain agar kisi cheez ko dil se
chaho ... to puri kaynaat usse tumse milane
ki koshish mein lag jaati hai (If you truly
desire something, the universe works to
help you achieve that goal)”.
As for the “impossible” targets that he
and his board have set, Jhunjhunwala
concludes: “Many of these goals appear
impossible but we will get somewhere,
regardless of whether they happen in
2030 or later. We have nothing to lose.”
 LIVEMINT.COM MINT MONEY ThuRsDay, 27 OcTObeR 2022
New Delhi 11

Lapsed policies? Beware of MINT 20 MUTUAL FUND

SCHEMES TO INVEST IN
frauds mis-selling insurance 20
We have hand-picked 20 mutual funds for your portfolio that have jumped
through hoops of good returns, low risk, good portfolio hygiene and our own
qualitative research. We have restricted the choice universe to 10 categories out
of the total 37 and given you at least two options to pick from each.

3-years return 5-years return Corpus

EQUIT Y (%) (%) (₹ cr)

While customers could be at fault, it doesn’t absolve insurers of their failure to detect it LARGE-CAP
UTI Nifty Index Fund - Growth 15.49 12.45 8,354
ISTOCK HDFC Index Fund - Nifty 50 Plan 15.23 12.26 6,776
Aprajita Sharma at Insurance Samadhan. The company Category average 15.02 12.11
feedback@livemint.com received over 730 complaints about
lapsed policy-linked fraud over the last EQUITY FLEXICAP

I
n 2017, Swapan Kumar Burman, a nine months. Balchandani of Insurance Canara Robeco Flexi Cap 17.48 13.22 8,243
resident of Tamluk in West Bengal, Angels says he received more than 20 Parag Parikh Flexi Cap 22.87 16.66 26,033
got a phone call from an insurance cases in the last four months. Category average 16.63 11.31
agent. The message was simple: he Systemic failure
was eligible for a bonus that had Fraudsters seem to have access to all EQUITY SMALL AND MIDCAP
accumulated on his life insurance pol- details of the policyholders, be it Axis Midcap 20.53 16.30 19,462
icy. Burman’s 2014 policy had lapsed address, phone numbers and the like. SBI Small Cap 29.78 17.22 14,494
after he failed to pay some premiums Blame it on data leaks, which is becom- Category average Midcap 23.56 12.72
but the agent said he could claim the ing a major concern.
Category average Smallcap 28.06 13.88
bonus on payment of a lump sum “We do not know the source of the
amount to revive the policy. And Bur- data, but telecallers are aware of the EQUITY (TAXSAVER)
man did what was asked of him. But details of the policyholders. Hence,
Canara Robeco Equity Tax Saver 20.46 15.38 4,176
that was just the beginning of his prob- these telecallers are able to gain their
Mirae Asset Tax Saver 19.52 14.03 12,925
lems. trust and mis-sell policies,” says Kumar.
Burman says, “The agent told me to Some agents find insiders in insur- Category average 16.45 10.71
pay some lump sum amount to receive ance companies who help them com-
the bonus. I did. After a while, he asked mit such fraud. “The data leak could be HY BR ID
me to pay more, saying I needed to buy happening with the wilful consent of BALANCED ADVANTAGE
a new insurance policy to get the the senior management or with the Edelweiss Balanced Advantage 14.43 10.44 8,683
bonus.” connivance of employees of the ICICI Prudential Balanced Advantage 12.14 9.97 42,989
Burman soon found himself in a insurer’s renewal and lapsed policy Category average 10.56 8.26
catch-22 situation—shelling out more department,” says Balchandani.
funds in pursuit of the money that he When Parul Jain filed a complaint ARBITRAGE
had paid so far. “They duped me into with her insurance company, the Kotak Equity Arbitrage 4.16 5.03 22,408
buying several insurance policies, until fraudster got wind of it. “She tried to Tata Arbitrage 4.17 NA 6,975
I realized that I had amassed 64 new persuade me to take back the com- Category average 3.88 4.79
policies from nine insurers. These plaint which obviously I did not.”
include policies registered in my name Victim blaming 1-year return* 3-years return Corpus
and those of my wife and my son as Often, aggrieved policyholders get DEBT (%) (%) (₹ cr)
well, besides 12 others taken in the no help from the insurance company. SHORT TERM
names of my colleagues. I spent ₹42 The latter blame the policyholder for HDFC Corporate Bond 2.36 6.24 21,313
24,430
lakh on new policies over a period of Swapan Kumar Burman and Parul Jain any fraud until the aggrieved person IDFC Corporate Bond 1.68 5.77 16,518
11,980
four years,” says Burman. takes the complaint to the next level.
Category average 2.52 6.03
When Burman realized that he was “They told me that they wanted the through dubious means is nothing While customers could be at fault,it
the victim of an elaborate fraud, he customer to receive the benefit, and new. But, instances of mis-selling that doesn’t absolve insurers of their ineffi-
CREDIT RISK
approached Nitin Balchandani of not the agent, but that I needed to buy is linked to lapsed insurance policies is ciency in detecting the fraud. “Bur-
HDFC Credit Risk Debt 3.19 8,616
7.27 24,430
Insurance Angels, who helped him a new policy to get myself listed in their suddenly on the rise. In most cases, man’s income was ₹11 lakh when he was
ICICI Prudential Credit Risk 4.43 7,903
7.24 11,980
escalate the matter with the insurers database directly. The new policy thus telecallers dupe people by sold policies that were
and the insurance ombudsman. A cou- issued was from a different insurer. I convincing them to buy In most cases, worth more than what he Category average 3.64 5.04
ple of insurers have since settled the was smart enough to ask them why unnecessary, albeit legiti- telecallers dupe was eligible for, at that
6-month 1-year Corpus
payment in full. Others have merged there was this need for a new policy but mate, insurance policies people by time. It’s logical to ask why DEBT (LESS THAN 1 YEAR) return* (%) return* (%) (₹ cr)
their multiple policies into one single was naive to believe the two insurers by making false claims so convincing them an insurer issued him HDFC Money Market 2.06 4.06 12,651
policy but said they could refund the were involved in a tie-up. They con- that they can earn a com- multiple policies when it
full amount only after five years. Some vinced me,” Jain says. She paid over mission. In other cases,
to buy Kotak Money Market 2.14 4.19 12,791
already had his data in its
cases are still pending. Burman has ₹3.5 lakh for four policies within a year. though, they siphon off unnecessary database?” says Balchan- Category average money market 1.96 3.87
recovered ₹22 lakh so far. Jain escalated the matter with the the money paid as pre- insurance policies dani.
Returns since Date of Corpus
Parul Jain (36), an IT professional insurance company and the ombuds- mium to their bank Do note that insurance OU T OF T HE BOX launch launch (₹ cr)
working with IT firm TCS in Hydera- man with the help of Insurance Sama- accounts. fraud is not a criminal
BHARAT Bond ETF - April 2031 3.20 23 Jul 2020 11,081
bad, faced a similar predicament after dhan, a grievance redressal platform. “Of the 80% complaints that we offence in India. “Till such time that
she got a phone call regarding her The insurance ombudsman has issued received about mis-selling in 2021, 20% fraudsters and officers involved are not Motilal Oswal S&P 500 Index Fund 13.25 28 Apr 2020 2,275
insurance policy. The telecaller told an award in Jain’s favour. She is hoping pertain to that of lapsed policies. This named and shamed and criminal cases *Absolute Returns
her about the privileged benefit of ₹6 to get her money back soon. year, the ratio is 60:40,” says Shailesh not filed, such practices will not stop,” Returns as on 21 October 2022; Corpus data as of September 2022; Growth option in regular plans has been used
Data and analysis by CRISIL Research Compiled by Neil Borate
lakh for being a long-term customer. The mis-selling of insurance policies Kumar, co-founder and insurance head Balchandani says.

Which mutual funds Know the right way to file insurance-related complaints
can aid your short-
and long-term goals? W
Srikanth Meenakshi
I am 28 years old and want
to start investing in mutual
funds through systematic
investment plans (SIPs).
Currently, I have a monthly
income is ₹50,000. My goal
is to buy a car in two years
and create a corpus for our
child which we are plan-
ning to have in next two
years. My final goal is to
accumulate wealth until
retirement.
—Name withheld on request
With a monthly income of
₹50,000, an ideal savings tar-
get for every month would be
₹10,000 (20% of your income).
For the utilization of this
investment, you have three
financial goals — one at a very
short duration of two years,
and two in durations that are
quite long (15+ years). For the
short duration goal of buying a
car, you can take only minimal
risks, if any, with your invest-
ments. So, you can at best
invest the money in very
short-term debt funds such as
the money market funds from
ISTOCK
ASK MINT
m MUTUAL FUNDS
two portfolios - one for each of
your financial goals, and man-
age them separately. In each of
these portfolios, you can use
index funds such as UTI Nifty
Index Fund and aggressive
funds such as Parag Parikh
Flexi Cap Fund and Axis Mid-
cap Fund. Flexi cap funds are
open-ended dynamic equity
schemes that invest across
large cap, mid cap and small
cap stocks. Such funds invest
at least 65% of their corpus in
Navneet Dubey
navneet.d@livemint.com
hat do insurance
policyholders do
when they have a
grievance? Many of them just
take to social media, be it Twit-
ter or Facebook, to complain.
They also tag insurers on such
posts. But, experts say this may
not be the right way to resolve
grievances even if the insurer
does not act on time.
Mahavir Chopra, CEO of
Beshak.com, says, “Most cus-
tomers vent out their frustra-
tion on Twitter, especially
when they haven’t found the
right channel to communicate
with the insurer or received a
proper response. Insurers do
have call centres, but the
WILL THE NEW IPO DISCLOSURE NORMS HELP INVESTORS?
POWER
POINT
P S A R AVA N A N &
SUMIT BANERJEE
Respond to this column at
feedback@livemint.com
responses are mostly system-
generated and may not help
resolve grievances. Even,
response given by customer
care executives may not
always satisfy the complain-
ant.”
Yet, it is only right that peo-
ple should use various griev-
ance mechanisms available to
them before using a public
forum. When insurers fail to
resolve grievances, it is better
for policyholders to reach out
to the insurance ombudsman.
TM Shyam Sunder, CIO of
Royal Sundaram General
Insurance, said, “The Insur-
ance Regulatory and Develop-
ment Authority of India (Irdai)
has a grievance redressal
mechanism which is very
responsive and focused on
GETTY IMAGES
redressal officer (GRO) or the
ombudsman’s office. You can
ment of Irdao. You can dial
155255 (or) 18004254732 or
check GRO’s email IDs of all send an email to com-
insurance companies at policy-
holder.gov.in. Give your com-
plaint in writing along with
plaints@irdai.gov.in. You can
also use Irdai’s online portal -
Integrated Grievance Man-
supporting documents and agement System (IGMS)—the
obtain an acknowledgement Bima Bharosa portal (bima-
slip for the same. bharosa.irdai.gov.in)—to reg-
Note that the grievance cell ister and monitor your com-
never entertains complaints plaints.
written on behalf of policy- You can send a complaint to
holders by advocates or agents Irdai by post. For that, you
or by any third party. It has to need to download the com-
be written by the insured only. plaint registration form, fill it
The insurer will have to up and send it along with your
resolve your complaint within letter of complaint and copies
customers’ interests. If the What you should do: You 15 days of receipt of the com- of relevant documents. The
insured has any dispute with should write to the insurer’s plaint. Further, if you are complaints should be
the insurer, they can approach grievance redressal cell if you unsatisfied with the insurer’s addressed to the General man-
the regulator or the ombuds- have any complaints about the resolution, you can approach ager, Consumer Affairs
man’s office in their city for insurer. You must register this the grievance redressal cell of Department- Grievance
resolution.” complaint with the grievance the Consumer Affairs Depart- Redressal Cell, Irdai.
ber of new-age technology companies (NATCs) coming to the the highest credence. Sebi has been trying to make the markets
market. Since these companies are initially focussed on scaling
up the business rather than generating profits, the disclosure of
more reliable for investors, and one can expect that the financial
indicators need to carry the approval of the auditors.
accounting ratios EPS, P/E ratio, return on net worth, and net Expected outcomes: The performance of a few high-profile
asset value (NAV) do not reveal enough about their performance IPOs upon listing has definitely eroded investor confidence in the
and how the price is affected. Hence, Sebi had asked for public pricing mechanism of these public issues. These companies
comments on the addition of non-traditional parameters of KPIs included both NATCs and giant legacy firms in traditional busi-
and valuation based on past fund-raising by such companies. nesses.
New regulations: The present move by Sebi indicates that it Sebi’s decision A sharp fall in price on listing or over
had received positive comments on this proposal. The regula- to bring in more a short period from the day of listing
tions, however, do not specify if these are exclusively for NATCs does not bode well for the market and
transparency in its investors. Hence, the decision of

HDFC Mutual Fund or Kotak
Mutual Fund. Money market
funds invest in money market
instruments having a maturity
of up to one year.
After you have saved
enough for the down-payment
of your car and fulfilled that
goal, you can start investing
towards your long-term goals
of child’s education, and
retirement. Contrary to the
money market portfolio, you
can take significant risks with
in the form of equity fund
exposures with these portfo-
lios. A good idea would be to
split your monthly SIP into
This PDF was originally uploade To Teligram channel_ LBS Newspaper platform (https://t.me/LBSNEWSPAPER) Subscribe now to get this edition before anyone else!! Backup channel:@LBSNEWSPAPER
equity instruments. A mid cap
fund, on the other hand, must
invest at least 65% of its corpus
in mid cap companies.
You can create sets of 3-4
funds for each of the two port-
folios with significant equity
exposure and allow them to
grow over the long term.
Srikanth Meenakshi is a
co-founder at PrimeInvestor.
Do you have a personal
finance query? Send in your
queries at
mintmoney@livemint.com
and get them answered by
industry experts.
M
arket regulator Securities and Exchange Board of India
(Sebi) has, in an effort to bring more transparency to the
initial public offering (IPO) pricing process, sought
increased disclosure from issuers coming to the market.
Sebi has asked companies to disclose their key performance
indicators (KPIs) and price per share based on past transactions
and fund-raising exercises. Companies now have to disclose the
price per share based on the primary issue and secondary sale or
acquisition in the past 18 months before the IPO goes live. If the
company has not done any such exercise in the last 18 months, the
timeline is extended to 30 months, and the details of the previous
five such transactions need to be disclosed to the public. In addi-
tion, a committee of independent directors is expected to
approve the price band based on various quantitative factors.
This is intended to help investors make a more informed choice
of whether or not to subscribe to the IPO issue.
Possible genesis: Sebi had released a similar consultation
paper recently to address issues pertaining to the increased num-
or for traditional businesses as well. In the absence of such exclu-
sion, these will apply to all issuers coming to the market. A higher
level of disclosure reduces the information asymmetry between
the issuer and the investor. With NATCs, the information asym-
metry is higher as the inefficiency of management can get cov-
ered by the excuse of losses incurred due to scaling up. Besides,
the prevalence of a hot IPO market may overshadow pricing and
management efficiency parameters in investment decision-mak-
ing, which may result in post-listing losses.
A significant omission that seems to be there in the new guide-
lines vis-à-vis the consultation paper is that of the role of the audi-
tors.
The consultation paper proposed that statutory auditors will
be mandated to audit the KPIs and that there should be a compar-
ison with Indian and global listed peer companies. These details
have not been explicitly added to the 30 September guidelines.
However, it is safe to assume that Sebi expects any such material
details that can affect the investment decision-making to carry
IPO pricing will Sebi to bring in more transparency in
help make the pricing process will help in better
better decisions decision-making.
The current global economic condi-
tions, inflationary trends, the Russia-
Ukraine war and the past performance of big-ticket IPOs have all
added to the gloom in the primary market. This has led to fewer
IPOs coming to the market, reduced retail investor participation,
and smaller listing gains this year. This move by Sebi is expected
to bolster investor confidence and bring more transparency to
the process. One must understand that listing or post-listing
losses do not add any benefit to the issuing company. Its goodwill
takes a hit, and so might its demand in the secondary market.
Hence, the big picture suggests that this move will also be better
for the issuers.
P Saravanan is a professor of finance, and Sumit Banerjee is a
doctoral student at the IIM Tiruchirappalli
 12 ThursDay, 27 OcTOber 2022
New Delhi VIEWS LIVEMINT.COM

OUR VIEW MY VIEW | OThEr SPhErE

GETTYIMAGES

The foundational education we

impart makes a huge difference
Our national curriculum framework for schooling till age 8 needs to be implemented as conceived

cal for lifelong well-being and overall
development of individuals—physical,
cognitive and socio-emotional. Brain
development happens fastest in these
years. Neuroscience research tells us
that over 85% of an individual’s brain
development occurs by the age of 6.
Thus, ‘Early Childhood Care and Educa-
tion’ (ECCE), which refers to the care and
ANURAG BEHAR education of children from birth to eight
is CEO of Azim Premji Foundation. years, is of central importance to all soci-
eties. This recognition has grown steeply
in the past two decades, spurring signifi-
cant investments across countries. For
as literacy, aesthetic and cultural
aspects—more effectively. Developing
foundational literacy and numeracy is
critical for all future learning and the
NCF-FS enables us to leverage all five
years of the Foundational Stage to
achieve this.
Second, the pedagogical approach rec-
ommended in the NCF-FS is play-based.
It includes conversations, stories, songs
and rhymes, music and movement, art
and craft, indoor and outdoor games,
field trips, being amid nature and playing
with materials and toys.

Google should abide by

India, the NEP is one of the most impor- Third, it emphasizes the need for
tant mechanisms for delivering high teaching and learning to be situated in

O
n 20 October 2022, the National quality, equitable ECCE to all our chil- the context of the child. This includes
Curriculum Framework for dren. Children of ages 0-3 are mostly use of the child’s home language and
Foundational Stage (NCF-FS) taken care of at home; institutional set- usage of content such as local and tradi-

our antitrust restraints was released by India’s ministry of edu-

cation. The NCF-FS is one of the most
important dimensions in the implemen-
tation of the National Education Policy
tings take over from age 3 onwards, so
the Foundational Stage addresses ECCE
for ages 3-8. This would include pre-
schools, kindergartens, nursery, Aan-
tional stories, rhymes, songs, materials,
and games. It is also about catering to
different needs and levels of children,
including children with special needs,
(NEP) 2020, and is likely to have a deep ganwadis, etc—all institutions that take for learning to be truly inclusive.
impact on the education and overall care of children ages 3-6, and classes 1 Fourth, assessment in the Founda-
The company was found in violation of competition rules by the CCI on broadly convincing well-being of our children. So, what is and 2 across all schools. tional Stage is seen as an enabler for
the NCF-FS and why is it so important? Before moving on, let’s clarify some learning and development. It is imag-
arguments. With a precedent set in the digital space, let’s codify the principles brought to bear The NEP is reconfiguring our system terms. ‘Curriculum’ refers to the entire ined as an integral part of the everyday
of schooling. It has created a 4-stage organized experience of students in classroom process and largely based on
‘5+3+3+4 curricular and pedagogical institutional settings to achieve educa- systematic and careful observation of
structure’. The ‘5’ refers to the first five tional aims. This includes learning and children and analysis of their work—

T
wo fines, amounting to over ₹2,000
crore, in the span of a week is a clear
signal from India’s antitrust body to
Alphabet Inc that it must not use its
dominance of mobile-device usage
to cramp competition and con-
sumer choice in the country. Over 95% of
smartphones in India run on Google’s Android
operating system (OS), which effectively lets it
play the gatekeeper’s role. Its control of which
apps appear by default on our screens as part of
its internet-access kit, and of the terms under
which apps enlist on its PlayStore for market
distribution, has long granted it the power to tilt
user traffic and claim a slice of business transac-
tions. In at least two cases, the Competition
Commission of India (CCI) has found Google
guilty of abusing its heft through policies
that create an unfair playing field. While the
US-based company responded with avowals to
review the regulator’s orders and evaluate its
course ahead, the importance of this outcome
mustn’t get lost in a cloud of technical details.
In its most recent order, issued on Tuesday,
competitors of these services could never avail
the same level of market access which Google
secured and embedded for itself,” observed the
CCI, which held that Android must not block
the deletion of these apps. While it’s clear that
Google’s OS has its favoured apps, an abuse of
dominance mustn’t have been easy to ascertain
in this case, since bundling services together is
a common practice, an OS does need to offer its
users a starter package of some basic utility, and
it’s not as if rival apps cannot be installed at all.
Yet, an antitrust authority must aim to secure
sufficient rivalry among apps for a thumb-sized
presence on the opening screens of handsets,
and if tools are deployed by a dominant OS to
keep competition away from our hand-held
windows to the digital world, then it would
merit intervention. Alphabet called the related
CCI order a “setback” for potentially exposing
Indian users to security risks, but keeping our
phones bug-free and market for apps well
contested should not be objectives in conflict.
The nature of the digital economy is such that
some businesses end up with monopoly power.
years of education from ages 3 to 8, developmental goals, syllabi, content to such as craft, projects and simple
called the Foundational Stage, and then be taught and learnt, pedagogical prac- worksheets.
ages 8-11 (Preparatory Stage), 11-14 (Mid- tices and assessment (exams), teaching- Fifth, it focuses on building an ena-
dle Stage) and 14-18 (Secondary Stage). learning materials, school and classroom bling ecosystem that’s necessary to make
The four stages constitute school educa- practices, the learning environment, it all happen. This includes empowering
tion and have been determined by the culture of the institution and more. teachers and enabling a supportive aca-
physical (including brain), social and With the diversity of our country and its demic and administrative support sys-
emotional development trajectories federal nature, developing and deciding tem. It also emphasizes the need to
of children, which in turn determines school curricula is the business of states ensure adequate infrastructure and
what is the most effective educational and other institutions. A National Cur- learning resources in each institution.
approach for that stage. In simple terms: riculum Framework guides and supports Finally, the NCF-FS speaks directly to
as children grow, what they can learn, the development of diverse, relevant and teachers. It focuses on classroom prac-
and how they learn it best, changes. The effective curricula across the country, tices with real-life illustrations from a
4-stage structure is based on the scien- while enabling consonance and har- variety of contexts. It is hence relatable
tific understanding of this phenomenon. mony that would be required. Let us and provides realistic pathways for
The importance of the Foundational consider a few highlights of the NCF-FS. teachers and others.
Stage is driven by the deep and long- First, an integrated curriculum frame- Full disclosure: I am member of the
term implications of the first eight years work for children from ages 3-8 will team that has developed the NCF-FS.
of a child’s life. Research from across the enable us to address all domains of Some of the sentences in this column
world in multiple relevant disciplines development—physical, socio-emotion- paraphrase the relevant text of the
shows that these years are the most criti- al-ethical, cognitive and language as well NCF-FS with a few changes.
www.livemint.com
New Delhi, Mumbai, Bangalore, Kolkata, Chennai, Ahmedabad, Hyderabad, Chandigarh*, Pune* Saturday, October 27, 2012 Vol.5 No.257 `5.00 in Delhi­NCR/`6.00 outside Delhi­NCR
+ 24 PAGES LOUNGE + 4PAGES
+ 20 PAGES LOUNGE
MEDIA MARKETING
16 PAGES
INITIATIVE
+ 4 MARKETS PAGES

the CCI fined Google ₹936.44 crore for a This makes the regulation of tech successes a Q&A: Arvind Lifestyle’s Suresh
on FDI in the retail sector >4
INTERNATIONAL: US consumers boost growth
despite caution >5

restrictive PlayStore policy that arm-twisted
tricky exercise. Innovation may have given such EXCLUSIVE PARTNER
EDSPACE: Gadkari is like the unknown uncle
from South Africa >15
NATION: Gadkari firm faces probe; Haryana
govt clears Vadra deals >6

app developers into using only its own payment firms their market might, but it is for the state to SENSEX 18,625.34 æ 133.29

NEW TIES
NIFTY 5,664.30 æ 41 DOLLAR `53.55 ®

Vote for Obama

EURO `69.24 æ `0.23 GOLD `30,675 æ `90

Will wait and QUICK EDIT

OIL $108.90 Æ $1

Telenor picks watch on A chance

systems as a listing condition. This was found maintain a vigil on how it’s used. Over-pricing is Valia as India
investing in at MEA
India: Branson F
B Y T ARUN S HUKLA
P .R . S ANJAI
&
or a government that
has lurched from
crisis to crisis for some
time now, foreign policy
is unlikely to be a At the end of the day,
unreasonable by the CCI, which asked Google no longer the big tell-tale sign of market failure JV partner
························· priority. It has hardly
DELHI/MUMBAI surprised anyone that the

R ichard Branson, founder of

UK-based airline Virgin
ministry of external
affairs (MEA), too, has

it’s not a normal

Atlantic Airways Ltd, will been adrift. On Friday,
watch the Indian aviation mar- the man at the helm
ket closely and wait for the there, S.M. Krishna, quit
The Norwegian firm’s pre-qualified bidders on Sun- right time to enter it, moving (see Page 7). There was
Indian entity will have day. away from his earlier position speculation that he could

to drop this insistence within three months and to look out for. Reductions of choice can have
The Uninor (Unitech Wireless that he would do so as soon as have faced the axe soon.
26% of its equity held Ltd) joint venture with Unitech the rules were changed. Speculation apart,
by Lakshdeep, Valia’s had all 21 licences scrapped by “Now foreign companies perhaps it is not fair to
the Supreme Court on 2 Febru- (airlines) have been opened up blame Krishna for the
family held company ary owing to irregularities in the to pick up 49% (in Indian air- somnolence of his
allocation of spectrum. Uninor’s lines), so we are keeping our ministry. The fact is that

condition to have
B Y S HAUVIK G HOSH licences were among the 122 be- eyes open. It’s a brave battle foreign policy is now
shauvik.g@livemint.com longing to nine companies that going on in the Indian aviation directed from the Prime
························· were cancelled by the Supreme space. Everybody is bleeding. Minister’s Office. It is too

enable alternative ways for app users to pay. various other harmful effects on our well-being.
NEW DELHI Court at the time. The spectrum There are bleeding companies. late in the day for the PM

N orway-based Telenor
ASA found a new Indian
partner in a low-profile
local businessman as part of its
strategy to rescue and rebuild its
business in the country from the
ruins of its now-terminated joint
that was thus freed up is shortly
coming up for the auction in
which Telewings will participate.
Telenor and Unitech agreed to
part ways after much acrimony,
There will be a right time and
we will watch,” Branson said in
New Delhi on Thursday.
India’s airlines lost around
$2 billion in the year ended
to go in for “signature”
successes (such as a
peace deal with
Pakistan), for henceforth
he will be preoccupied
which left the Norwegian com- March on the back of $3.5 bil- with domestic matters.
pany needing a local partner if it lion in losses over the previous But the world can’t wait.

Among other things, it must also ensure pricing Since these harms are not always immediately
venture with Unitech Ltd.
The Norwegian company has
chosen Lakshdeep Investments
and Finance Pvt. Ltd, the family
held investment firm of Sun
Pharmaceutical Industries Ltd
executive director Sudhir Valia,
to be its partner.
Not much is known about
wanted to stay in India as the
rules limit overseas holdings in
telecom companies to 74%.
To that extent, Valia will play
the same role that Analjit Singh
and Ajay Piramal play in the lo-
cal venture of Vodafone Group
Plc. as local partners.
“Telenor Group will maintain
interest rates at zero.
three years, according to the Managing multi-lateral
International Air Transport As- negotiations and
sociation. relations with our
US President Barack Obama casts his vote early at the Martin In order to address the sec- neighbours are just two
Luther King Community Center in Chicago, Illinois, on tor’s need for capital, the Indi- areas that need an
Thursday. Obama created history when he voted over 12 days an government allowed foreign empowered foreign
ahead of the 6 November elections, thus becoming the first US airlines to buy up to 49% of the minister. It is time India
president to vote early. Photo: Kevin Lamarque/Reuters had one.
TURN TO PAGE 2®

transparency, share relevant consumer data apparent, and grey zones do exist, we should
Valia except that he’s a char-
tered accountant and is also on
the board of Fortune Wealth
Management Co. India Pvt. Ltd,
besides being the brother-in-law
of Dilip Shanghvi, managing di-
rector of Sun Pharma. Valia’s
family has other investments, in-
cluding a 2,600MW power
with app owners, and, as the owner of Google codify the broad principles of state scrutiny
project in Andhra Pradesh.
Telenor’s Indian entity Telew-
ings Communications Pvt. Ltd
operational control and upon
necessary approvals all assets of
Unitech Wireless (Uninor) will
be transferred to this company SEPTEMBER QUARTER NET RISES 30%
for seamless continuity of opera-
tions,” Telenor said.
“Lakshdeep will contribute an
agreed amount of equity into
Telewings. Upon successful par-
HUL slips on ICICI Bank beats
volume worries Street estimates
ticipation in the upcoming spec-
trum auctions and post all re-
quired government approvals,

will have 26% of its equity held
by Lakshdeep. The remaining
74% will be held by the Norwe-
gian company, said an official
with knowledge of the deal.
“This is a financial investment
Pay, stop putting rival UPI payment apps at a we’ve adopted via a law update. Big Tech firms
by Mr Valia in his personal ca-
pacity,” Telenor said in a re-
lease.
Telenor has applied to partici-
pate in the upcoming auction for
second-generation (2G) telecom
spectrum, expected to begin 12
November, through Telewings.
The department of telecommu-
Telenor Group will eventually
own 74% of the joint venture,”
the company said in a release.
Telenor, which has invested
`14,000 crore in India, held a
67% stake in Uninor, which has
about 40 million subscribers.
The deal requires Lakshdeep
to invest a nominal amount in
the company in the current ini-
tial stage when there are no as-
sets on its books.
“It’s a shell company as of
now and when assets come to
the company, there may be a
L LOYD B L A N K F E I N
MARK TO MARKET
RAVI ANANTHANARAYANAN HUL profit
B Y J OEL R EBELLO
joel.r@livemint.com
·························
Has ICICI Bank
rises 17%
MUMBAI
regained its
I f analysts were expecting an
I ndia’s largest private lender
sparkle?
8% growth in consumer ICICI Bank Ltd on Friday re-
bellwether Hindustan Unilever B Y S APNA A GARWAL ported a 30% rise in net profit for
Ltd’s volumes in the September sapna.a@livemint.com the September quarter to `1,956
quarter, then 7% qualifies as ···················· crore, driven by a 34.5% increase MARK TO MARKET
under-performance, but not MUMBAI
in net interest income on a
RAVI KRISHNAN
intolerably so. So why did its
stock drop 2.1% after the results I n a volatile and uncer-
tain environment, Hin-
handsome 18% loan growth.
The profit was higher than
were announced? Expensive
valuations could be a reason.
dustan Unilever Ltd (HUL),
the Indian unit of Anglo-
`1,869 crore estimate from a poll
of analysts by Bloomberg. The I C I C I B ank Ltd’ s
September quarter numbers

market disadvantage. In last week’s whip crack, must get no space to complain of arbitrary
nications will publish the list of
NOTE TO READERS
There is no Markets Watch with
today’s edition.
larger payout, but that will go
into the company,” said the ex-
ecutive cited above.
Unitech and Telenor an-
nounced a settlement of their
dispute on 11 October. The part-
ners had initially fought over the
future funding of the venture
with the Norwegians pushing for
But a bigger worry for investors
is a pattern of slowing volume
growth, from 10% in the March
quarter and 9% in the June
quarter.
The headline numbers are not
bad by normal standards. Sales
in its domestic consumer
business rose 16% year-on-year
Dutch consumer goods
maker Unilever Plc, report-
ed a 17% rise in net profit
for the second quarter, sus-
taining margins as sales
slowed.
The maker of Knorr
soup, Surf and Wheel de-
tergents and Lux soap said
bank’s earnings per share im-
proved to `16.91 from `13 last
year.
ICICI Bank’s stock fell 0.73% to
close at `1,078.25 on Friday on
BSE Ltd, while the bourse’s
benchmark Sensex fell 0.71% to
close at 18,625.34 points and the
banking index, the Bankex, shed
do much to justify investor faith
in the stock in recent times.
After a long dry run, the stock
finally started to beat the Bankex
index since the June quarter
results.
The September numbers
continue the trend of robust
profitability seen for some time

the CCI had come down heavily on Google for application of antitrust rules. They’ve been
NOTE TO READERS
The Media Marketing Initiatives
going with this edition and the one
on Page 11 are the equivalent of paid­
for advertisements, and no Mint
journalists were involved in creating
these. Readers would do well to treat
a rights offer. After the Supreme
Court verdict, the fight escalated
with both sides accusing each
other of impropriety and filing
suits and counter suits in various
courts.
“They will most likely bid for
the spectrum in the auction for
13 major circles. All the opera-
to `5,876 crore, which means
price—and maybe product mix
to some extent—played an
important role in driving sales
growth. If price hikes were
merely to pass on cost hikes, as
in the past, then it’s
understandable.
But HUL’s results show
on Friday that net profit
rose to `806.72 crore in the
three months ended 30
September from `688.92
crore a year earlier.
A Bloomberg poll of 25
analysts had estimated net
profit at `772 crore and
sales at `6,272.9 crore.
0.92% to close at 13,217.36
points. The bank announced its
earnings during market hours.
The growth in advances was
mainly driven by lending to
companies, which rose more
than 20% compared with a 14%
growth in retail loans to individ-
uals buying cars, commercial ve-
now. Net profits grew 30% from
a year ago to `1,956 crore,
bettering street expectations.
This, in turn, was driven by a
35.7% rise in operating profit,
again a best for at least eight
quarters.
A major reason for the rise in
operating profits was growth in

forcing a bundle of its own apps onto Android lucky that these rules have lagged their rise, but
them as advertisements.
Mint is also available for R9.50 with
Hindustan Times in Delhi-NCR only
tors will pay for the spectrum us-
ing debt,” said a Mumbai-based
analyst with a multinational bro-
kerage firm requesting anonymi-
ty.
otherwise. Net sales from Domestic consumer hicles and homes. loan volumes and expansion in
operations (includes domestic product sales, which in- ICICI Bank was able to main- margins. ICICI Bank grew its
consumer and other revenues) tain its asset quality in the Sep- loans 18% from a year ago,
TURN TO PAGE 3®
TURN TO PAGE 3® TURN TO PAGE 2® TURN TO PAGE 2®

handsets made by sundry manufacturers. “The that luck is running out as regulators catch up.

MY VIEW | WOrLd APArT

Both superpowers have dysfunctional domestic politics

doxically “election denialists”. They continue
RAHUL JACOB to profess that Donald Trump was a victim of
election fraud in 2020; their supporters are
openly threatening violence against those
whose job is to count and certify results.
Half the world away in Beijing, the 20th
and disturbing—eclipse of the old guard. been widely criticized. Vaccination rates member of the party’s new central commit-
This montage of one-man rule unsettled among the elderly, though above 80%, are tee. In addition to Premier Li’s impending
stock markets. Xi’s assertion of power was nowhere near as high as they should be. In retirement next year, Xi’s able economic lieu-
also a reminder that his idiosyncratic policies, addition, the Chinese vaccines do not pro- tenants of the past few years—Liu He and Guo
such as seeking to eliminate covid while the duce as strong an antibody response as those Shuqing—are also retiring. The language of
rest of the world lives with it, and the govern- used elsewhere. Rolling lockdowns and the Xi’s address to the congress downplayed

L
ike something out of a fortune cookie,
“May you live in interesting times,”
widely attributed to be a Chinese curse,
is not colloquially used in Mandarin. Even so,
going by the past couple of weeks, it applies
to the dysfunctional domestic politics and
economies of both the world’s superpowers,
the US and China. With US mid-term elec-
congress of the Chinese Communist Party
ended this weekend with something rare for
a communist state—a nail-bite-worthy public
political drama. President Xi Jinping’s aboli-
tion of a two-term limit followed by his post-
Deng predecessors made the consolidation of
Xi’s power over the standing committee,
China’s apex political body, a foregone con-
ment’s cutting down to size of tech giants spectre of covid have depressed China’s peaceful economic development, a byword of
such as Alibaba are here to economy. Its most recent previous leaders. Instead, it amplified the
stay. On Monday, Hong retail sales data show they need for “an increased capacity for the army
Kong’s Hang Seng index America needs rose marginally and exports to win” and “actual combat training” for the
dropped by close to 7% in by single-digits; month-on- military. This should worry India and China’s
response and American to overcome month retail sales and servi- other neighbours as well as the US.
depositary receipts of Chi- ces actually declined. But it Indeed, a recent security document from
nese shares listed in the US
a crisis of is the all-important prop- the White House labels the threat from Bei-

is a Mint columnist and a

tions less than a fortnight away, the high
inflation of the past many months has under-
former Financial Times foreign
correspondent.
mined support for the Democrats and the Joe
Biden administration. One observer
described inflation as the “acid” that had
eaten away at positive news such as high job
growth and a widening of the US safety net.
Just a few months ago, the Democrats looked
poised to retain control of the House of Rep-
resentatives, where they have 220 seats to the
Republicans’ 212. Now, most polls see the
Republicans taking control, possibly with a
margin of 20 to 30 seats and doing well even
in hitherto strongly Democrat states such as
New York and Oregon. More worryingly,
most of the Republican candidates are para-
This PDF was originally uploade To Teligram channel_ LBS Newspaper platform (https://t.me/LBSNEWSPAPER) Subscribe now to get this edition before anyone else!! Backup channel:@LBSNEWSPAPER
clusion. Even so, the packing of the standing
committee with Xi loyalists while dropping
well regarded Chinese leaders from the body
such as Li Keqiang, premier since 2013 who
will remain in his post till March 2023, and
vice-premier Wang Yang was a reminder that
Xi really is China’s “chairman of everything”,
as a China observer once quipped. But the
most baffling sight of the congress was when
Xi’s predecessor, Hu Jintao, was pulled out of
his chair and escorted off the stage. Chinese
official media said this was because he was
unwell, but given the incident occurred just
after the media was ushered into the hall and
occurred before the clicking of hundreds of
cameras, it seemed instead a very public—
fell by twice that. Investors
are losing faith in the China
democracy erty sector that remains in
the doldrums; residential
jing in unequivocal terms. But, as US mid-
term election campaigns show, no developed
story. An index of Chinese
companies on the Hong
while China sales transactions dropped
by a fifth in September and
world country is as bitterly divided as the US.
The New York Times counts anything from
Kong market now trades at shifts to overt residential building starts 250 to more than 300 Republican candidates
just 6.5 times earnings. by 12%. These steep drops who deny the validity of the 2020 presiden-
The pursuit of a ‘zero- one-man rule have knock-on effects on tial election. More disturbing than anything
covid’ policy through harsh local governments, which I have seen on Netflix was a New York Times
lockdowns over the past use land sales for funding. podcast of an hour-long interview this week
couple of years shows no sign of abating. The Chinese economy urgently needs with a county election official (a Republican)
Indeed, the most prominent promotion on reforms at many levels. Instead, the party in Arizona who reported routine death
the standing committee was of a Xi loyalist congress’ selections and omissions put threats ever since he attested that the 2020
who has headed the administration in the reforms (and reformers) on the back-burner. election results were accurate. For all the
commercial capital of Shanghai, where the People’s Bank of China governor Yi Gang was headlines of superpower rivalry, the past few
episodic lockdowns of entire housing com- among the reformist policymakers not weeks show that for both China and the US,
munities and very tough quarantining have named this weekend as a full or alternate the greatest threats are within.
 LIVEMINT.COM VIEWS ThUrSDay, 27 OcTOber 2022
New Delhi 13

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

Rupee depreciation is unlikely The US Fed’s pace of rate hikes

will determine accident risks
to aid exports in the near term The Fed faces a complex inflation-growth-stability configuration

Theory and past experience suggest we can’t count on a weaker currency for an export boost until the global economy recovers

MINT

MOhAMEd A. EL-ERiAn
is president of Queens’ College,
Cambridge, and a former chief executive
officer of Pimco.
VidyA MAhAMBARE &
C. VEERAMAni
are, respectively, professors of economics at
Great Lakes Institute of Management, Chennai,
and Indira Gandhi Institute of Development
Research, Mumbai

T
he heated debate about how central
banks should respond to persistent

F
or more than a month now, one US dollar
has been exchanged for more than 80
Indian rupees. The value of the rupee
has more than halved since early 2008.
Would rupee depreciation help raise
exports and provide a cushion for India’s
economic growth during the global slowdown that
is upon us?
A country’s exports primarily depend on two
factors. First, customer sensitivity to the export
price. If export demand is highly price responsive,
then a decrease in export prices raises export quan-
tity more than proportionately, all else remaining
the same. Export revenue, which is export quantity
multiplied by price, therefore rises.
If all other factors do not remain constant,
especially if the export prices of competitors also
decline, then the increase in our export demand
and revenue, if any, would be less.
Second, export demand depends on sensitivity
to buyers’ incomes, namely the income elasticity of
exports. All else remaining the same, if the income
elasticity of exports is less than one, then a decline
in buyers’ incomes leads to a reduction in export
demand, but not too much. In contrast, a decline in
buyers’ income would reduce export demand and
therefore export revenue significantly if the
income elasticity is greater than one.
During a global downturn, export prices and
world income tend to fall. Exporting countries
whose exports are highly price-responsive but less
income-sensitive benefit during such times.
Further, countries with lower import content in
their exports benefit more when their currency
depreciates. Depreciation leads to higher costs for
imported inputs, so higher reliance on imported
inputs does not bode well during depreciation epi-
sodes. Similarly, if domestic inflation is higher,
then the cost of domestic inputs rises faster,
lowering export competitiveness.
What is known as the real effective exchange
rate (REER), rather than the nominal exchange
rate, therefore, matters more for exports. The
REER is the trade-weighted exchange rate of the
exporting country’s currency against a basket of
foreign currencies adjusted for retail inflation at
home and in trade-partner economies.
Now, how do Indian exports fare on the above
criteria?
India’s exports are more income sensitive than
price sensitive, with their income elasticity found
to be greater than one (Veeramani, 2008; Chinoy
and Jain, 2018). Any export gain from currency
depreciation, therefore, tends to be less than a
decline in export demand due to a fall in global
growth. Also, while Indian exports are mostly price
sensitive, elasticity has declined over time.
Moreover, as per the Reserve Bank of India’s
estimates, based on both 40-currency and 36-cur-
rency baskets, India’s REER is steady, implying
that there has been no significant export competi-
tiveness gain in recent months as our rupee
declined against the dollar. First, Indian inflation
might have been higher than that in trade partners,
nullifying the effect of the rupee’s nominal
exchange rate depreciation on price competitive-
ness. Indeed, for the year 2021, India’s consumer
price inflation was higher at 5.1% compared to the
averages for middle-income countries (4.1%) and
high-income countries (2.5%).
Second, while the rupee has been losing value
against the dollar, the Indian currency has experi-
enced noticeable appreciation against other major
currencies. The rupee fell against the dollar for
every month from January to August 2022 com-
pared to the corresponding months in 2021. In
contrast, the rupee has consistently appreciated
against other major currencies, including the
pound, yen and euro, during the same period.
Appreciation against other currencies has offset
the Indian currency’s depreciation against the
dollar, resulting in little change in the REER.
Further, the import content of our exports, par-
ticularly of manufactures, is high (Veeramani and
Dhir, 2022). The two exports of petroleum and
gems and jewellery that together account for a
quarter of India’s goods exports are the most
import intensive. With the increased participation
of India in global value chains, the import intensity
of a range of other products also went up signifi-
cantly over the years.
Estimates by the Organisation for Economic
Cooperation and Development show that the share
of foreign value added in India’s gross manufac-
tured exports increased consistently from about
16% in 2000 to the peak of 36.5% in 2012. This
declined to less than 30% by 2018, partly due to
Indian hikes in average import tariff rates for
inputs in recent years. Despite the recent decline,
India’s import intensity of exports remains high.
When the rupee depreciates, or ad valorem
import tariff rates go up, foreign inputs become
costlier, raising the cost of production and acting as
a tax on exports, by the Lerner Symmetry Theorem.
Generally, an export strategy based on trade protec-
tion does not work in a world where production
processes depend on international supply chain
networks. This affects the price competitiveness of
manufactured exports more than that of services.
The price of energy, a key production input that
we import, is also expected to remain high for the
foreseeable future. Also, supply-chain disruptions
and material shortages would likely continue on
account of growing protectionism worldwide.
Overall, it is unrealistic to expect that the rupee’s
depreciation against the dollar would provide a
tailwind to India’s export growth. Evidence from
previous global downturns suggests the same.
Is there a silver lining? Given that our exports
are driven more by global growth than our export
prices, Indian exports will likely zoom again once
the global economy recovers.
Praveen Kumar, graduate of Great Lakes Institute
of Management, Chennai, contributed to this article
high inflation has focused primarily
on how high interest rates should go and
how long should they stay there. A third
issue, that of front-loading the increases, is
particularly relevant in this rate cycle. After
all, central banks are seeking not just to
lower inflation without unduly damaging
growth and jobs, they also face the chal-
lenge of steering a fragile financial system in
which a market malfunction can signifi-
cantly damage economic well-being.
Consider the US Federal Reserve. Having
badly misdiagnosed inflation last year and
fallen behind its price-stability mandate, it
has intensified its policy response over the
last few months. The June rate increase of
75 basis points was the first of that size in 28
years, and it was followed by two likewise
increases, a record, with a third one
expected at its next meeting. This Fed rate-
increase cycle, which has already delivered
a total of 3 percentage points in just over six
months, is the most front-loaded one in a
long time. A cooling US housing market,
sharp appreciation of the US dollar and the
headaches given to other countries world-
wide are examples of its effects.
Yet, reflecting how tardy the US Fed’s
response has been, financial markets are
pricing in an additional 1.75 to 2 percentage
points of rate hikes in this cycle. Drawing on
Chair Jerome Powell’s repeated references
to Paul Volcker, the 1980s central banker
famous for crushing inflation, quite a few
expect high rates to persist for a while.
No wonder the laments that, having to
play catch-up, the world’s most powerful
central bank risks pushing the US economy
into recession, throwing millions of people
out of work, worsening income inequality,
undermining its independence and lighting
economic fires around the globe. It is a con-
cern amplified by an operational approach
that relies heavily on lagging data and still
seems governed by an outdated monetary
policy framework. Yet, also as worrisome, is
the possibility that an early ‘pivot’ in Fed
policy would risk leaving America’s econ-
omy in a stagflationary swamp.
This delicate balance between reducing
inflation and limiting the hit to economic
well-being is all the more complex because
of financial stability worries, including the
pronounced threats of malfunction in G7
government bond markets at the core of
financial intermediation. The weakest links
are in leverage. Derivative-heavy chains
have migrated out of banks to non-banks
that are both less well supervised and regu-
lated. This was vividly illustrated a few
An entire set of financial assumptions can
go awry as interest rates rise AP
weeks ago by the near-collapse of firms
serving the UK pension system.
The faster the rate-hike cycle, the greater
the risk of financial accidents with nasty
spillovers. After all, the financial system did
what it was incentivized to do during more
than a decade in which markets were condi-
tioned to believe in the longevity of a policy
regime that floored rates at zero or negative
rates, injected trillions of dollars of liquidity
and reinforced the belief in a ‘central bank
put’ that shielded markets not only from
large asset price declines, but also what was
once deemed normal volatility.
The system’s optimization of that regime
involved large debt and leverage; over-ad-
herence to unrealistic return objectives;
and, for many, venturing well beyond their
natural investment habitat and expertise.
Even though the skew of each factor was
distorted and artificial, it seemed tilted in a
highly favourable way by central banks’
delivery of the three things that matter most
to investors: high returns, low volatility and
favourable correlations.
Inflation and monetary policy changes
that it entails require an orderly reversal of
that, which is easier said than done. That has
spurred concerns about the pace of the
Fed’s rate hikes increases. If the Fed is not
careful, well-intended policy actions could
cause not just a recession, but also an acci-
dent of disorderly deleveraging and dis-
ruptive contagion all across.
In theory, the Fed’s growth and financial
stability challenges could be resolved with-
out harming the battle against inflation by
convincing markets that its rate destination
remains the same but the journey will be
prudently slower. In practice, this is hard for
a central bank that, to cite the president of
the Philadelphia Fed, is associated with a
“frankly disappointing lack of progress on
curtailing inflation.” The Fed is stuck in a
3-D rock-versus-hard-place situation.
The speed with which interest rates are
going higher for longer, while needed to
curb inflation, increases the risk to financial
stability. If only all the earlier talk of transi-
tory inflation, soft landings and immaculate
disinflation had not delayed policymakers’
reactions and market adjustments. Now
that time is against it, the Fed will need even
greater skill, and a lot more luck, to navigate
such a complex inflation-growth-stability
configuration. ©BLOOMBERG

MY VIEW | vISIbLe haND

We’ve made significant progress on poverty reduction

sionally poor. By identifying who is poor
NARAYAN RAMACHANDRAN and the nature and intensity of their pov-
erty, the global MPI complements the inter-
national $1.90 a day poverty threshold.
First, the great news. In 15 years, starting
from 2005, India has had as many as 415
(dominated by Sudan) and about 110,000 in
South Asia, concentrated in Afghanistan
and Pakistan. For instance, Nepal has made
dramatic strides in sanitation, Laos on mul-
tiple indicators like cooking fuel, electricity
and housing, and Ethiopia in years of
even though the most improvement has
been made in Bihar, Jharkhand, Chhattis-
garh, Madhya Pradesh, Rajasthan and Uttar
Pradesh (the so called ‘Bimaru’ states), they
remain India’s most deprived, still. Odisha
joins this deprived club. Karnataka, Maha-
and housing need to be addressed on prior-
ity. The remarkable progress made in dis-
tributing basic calories through our public
distribution system must now be oriented
towards distributing ‘nutrition’.
That progress was enabled by the success

S
ome great news and some not so good
news. That’s the summary of the latest
joint report from the United Nations
Development Programme (UNDP) and the
Oxford Poverty & Human Development Ini-
tiative. Titled Unpacking Deprivation Bun-
dles to Reduce Multidimensional Poverty, the
report is based on robust household survey
million people exit poverty. This is the first
time that we have evidence of China-like
performance in poverty reduction. During
this period, the incidence of poverty fell
from 55.1% of our population to 16.4%. Even
though India still has an unacceptably high
number of poor, we can categorically state
that India is no longer a “poor country”. As
schooling. Ethiopia remains poor, with a rashtra and Gujarat have much progress of Aadhaar in targeting beneficiaries with
68.8% incidence of pov- ahead to catch up with reduced waste and very few fake claimants.
erty just before the onset Kerala, Tamil Nadu, Delhi The same architecture can be used for a
of the pandemic. But we still have and Punjab. more balanced food distribution system
For India, the not-so- The data used in the that includes healthier macro and micro-
good news is that we still the largest report incorporates only nutrients and protein. Perhaps a more
have the largest number of very few months of the robust real-time system can be added to
poor people worldwide
number of the pandemic. The asymmet- enable access to perishables like eggs, vege-

is chairman, InKlude Labs. Read

Narayan’s Mint columns at
www.livemint.com/
avisiblehand
This PDF was originally uploade To Teligram channel_ LBS Newspaper platform (https://t.me/LBSNEWSPAPER) Subscribe now to get this edition before anyone else!! Backup channel:@LBSNEWSPAPER
data from 111 underlying developing coun-
tries and covers 6.1 billion people.
The 2022 global Multidimensional Pov-
erty Index (MPI) follows a rigorous and
objective approach, and in so doing yields
important insights in cross-country analysis
and on long-term trends. The MPI’s meth-
odology identifies overlapping poverty
indicators and therefore captures the inten-
sity of deprivation and changes thereof.
Deprivation is monitored across 10 indica-
tors spanning health, education and stan-
dard of living. The weighted average score
of each household is the MPI. If that depri-
vation score is one-third or higher, the MPI
identifies the household as multidimen-
India’s population has quadrupled in the 75
years since Independence, India’s progress
on poverty reduction has been steady, par-
ticularly in the last 30 or so years. India has
made measurable progress on all 10 depri-
vation indicators. In 2019, my column used
the World Poverty Clock estimates to sug-
gest that India had made dramatic strides in
reducing extreme poverty (bit.ly/3ziA0Y5).
This report confirms that observation more
rigorously.
Across 111 developing countries, 4.1 mil-
lion poor people are deprived on all 10
indictors (that is a deprivation score of 10).
As many as 3.8 million of them live in Sub-
Saharan Africa, 214,000 in Arab states
(229 million). The urban-
rural divide is stark. As
world’s poor
many as 21.2% of our rural
residents are poor, com-
and need to
pared to only 5.5% of reorient policy
urban dwellers. Rural
areas account for nearly to end poverty
90% of all poor people in
India, according to the
report, with 205 million of the 229 million
living there. In India, the most common
‘deprivation bundle’ comprises access to
cooking fuel, housing, nutrition and sanita-
tion. And tragically, more than one in five
children (21.8%) are poor, compared with
one in seven adults (13.9%). Unsurprisingly,
ric impact of covid is likely
to have set back India’s
dramatic progress. Some
estimates suggest that
school closures and food
insecurity may have con-
tributed to many years of
regression on this count.
We will know more about
the pandemic impact as the first reports
from post-pandemic household surveys
begin to arrive next year.
One positive outcome of evaluating ‘dep-
rivation bundles’ is that it helps us re-orient
public policy. Deprivations in people’s
access to nutrition, cooking fuel, sanitation
tables and fruits.
Subsidized cooking fuel benefits from
the same architecture, but its penetration
needs to be deepened in rural areas. The
Ujjwala scheme estimates that cooking gas
penetration in India is nearly 98% now.
More objective estimates that adjust for
multiple connections in some households
yield a lower but more plausible number.
Both the Centre and several state govern-
ments have been focusing on sanitation and
affordable housing. Significant progress
remains to be made on these counts. So
there is clearly more to be done.
P.S. “Poverty is deprivation of opportu-
nity,” said Nobel Laureate Amartya Sen.
 14 ThursDay, 27 OcTOber 2022
New Delhi BUSINESS OF LIFE CULTURE LIVEMINT.COM

In ‘Dhanpatir Char’,
myth meets modernity
This audacious Bengali
novel, now in English,
joins a distinguished line Akshay Kumar in ‘Ram Setu’
of books that capture
the changing fortunes of
Bengal’s deltaic region
This Akshay
Somak Ghoshal
feedback@livemint.com
Kumar film is a
bridge too far
R
eaders who venture into the
hypnotic universe of Amar
Mitra’s novel, Dhanapatir Char,
must brace themselves for sur-
prises. Not so much by way of
‘Ram Setu’ is an unintentionally
twists and turns in the plot as by the author’s hilarious action adventure movie
relentless demands on them. To read Mitra’s
epic well, we must shift our mindset first—not
just willingly suspend our disbelief but rather be Uday Bhatia
willing to believe in the mystical, to surrender uday.b@htlive.com
to the inexorable power of stories. As the epony-

B
mous Dhanapati, the ancient, self-proclaimed y casting Akshay Kumar as an atheist and self-described
overlord of an island on the Bay of Bengal, tells ‘man of facts’, Ram Setu teases its payoff from the start. At
his teenage “wife” Kunti, “You cannot listen to first, archaeologist Aryan (Akshay Kumar) submits a his
this story if you try to fathom it with a calendar report that concludes that Ram Setu, a long stretch of shoals in
and a watch. The story of the island is timeless, Indian and Sri Lankan waters, was not a bridge made by Ram
with a million possibilities.” himself. Aryan will not be won over by appeals to faith. You can
Although written in the realist mode, Mitra’s see why shady shipping magnate Indrakant (Nasser) would hire
novel is audacious in its treatment of plot and him to lead a mission to prove conclusively that Ram Setu is natu-
character. Myth meets modernity in its pages to rally occurring, thus allowing it to be dredged through for a deep-
create an air of heady uncertainty, as if the sea project (this mirrors an actual stalled project). At Aryan’s dis-
words are laced with intoxicants. Old Dhana- posal is a ship with a state-of-the-art lab and a team of scientists.
pati, for instance, is believed to be centuries old. Also, a gigantic diving suit that looks like a fitter Michelin Man.
At times he claims he’s descended from the Por- There are three dives, each funnier than the last. In the first,
tuguese pirate Pedru; at other times, he says he Aryan has to collect a rock sample. As he approaches the shoals,
is Pedru himself. And then, there are moments the soundtrack starts echoing with sonorous namahs, like he’s lit-
when he insists that he’s a giant tortoise who erally swimming into holy waters. The sample seems to confirm
holds his island on its back and wants to swim that the canal is older than Ram (which is 7,000 years ago, as per
away with it one day to Lisbon. the film), but Aryan wants more proof. So he dives again, this time
This enormous reptile, a creature who has to bring a whole rock back. The cable attached to the ship is
been venerated in folklore across the world For fisherfolk, the collective reminiscence of a glorious past is a form of defence against the incursion of the state ISTOCKPHOTO pulled away at the last moment by Indrakant’s man Bali (Pravesh
since prehistoric times, is believed to surface Rana), but an empty suit turns up. A few seconds later Aryan sur-
over the ocean for six months every year. Dur- departure like clockwork. destruction and ill omens. Batashi’s troubles are faces, walking across the barely submerged bridge, carrying the
ing this time, fishermen from the mainland One year, a human trafficker and land shark discussed ad nauseam, every dire consequence stone on his shoulder. “Woh sea pe kaise chal raha hai?” asks San-
come to the island to make a living, accompa- called Dasharath Singh comes in pursuit of one is dissected. And yet, these repetitions, instead dra (Jacqueline Fernandez), an envi-
nied by a group of vagrant women, who act as of the fisherwomen, Batashi. His greed and lust, of jarring on the ear or slowing down the pace, ‘Ram Setu’ ronmental scientist, apparently.
their “wives” for half a year. While on the combined with Batashi’s fierce resistance, bring act like incantatory spells. The deeper the didn’t need to The suit is sadly shelved for the third
island, the fisherfolk pay homage to Dhanapati, in unwanted changes to Pedru’s Island. Dhana- reader gets into this magical world, the more and final dive, with Aryan, Sandra and
sharing their earnings with him as taxes, who, pati decides to hand over his empire to his tem- firmly their sympathies take root on the soil of be a film. This carbon dating expert Gabrielle pilot-
in turn, pays off the “government”. As it porary “wife” Kunti, a chit of a girl with the cour- Dhanapati’s Island. could have been ing a submarine in a terrible storm,
becomes clear early on, “government” is a age of a lion, whose makes it her mission to For the poor fisherfolk and their “govern- a WhatsApp another of Bali’s not-suspicious-at-all
catch-all term that refers to the police, release the floating women population from the ment” Dhanapati, the collective reminiscence forward ideas. Gabrielle, who doesn’t like Bali’s
bureaucracy, and big businesses—people or indignity of their half-year lives, and give them of a glorious past is a form of defense against the vibe, carries the stone with her—it’s
institutions that wield their authority over the instead the permission to build a “twelve-month incursion of the state. While Dasharath goes been revealed to date from about the
wretched fisherfolk and women. life” on the island. Her plan requires the approv- around bribing the authorities in his quest to time of Ram. Things go south. In the space of 10 chaotic minutes,
At the end of their stay, the fishermen dis- als of the “governments”—starting from Mangal occupy Pedru’s Island, old Dhanapati and his they are saved by the stone (it floats), then by a deus ex machina
mantle their make- Midde, a constable, to tribe spin fantastical tales of ownership and tour guide played by Satya Dev, and finally by rebel fighters in a
believe worlds, burn Malakar, a govern- inheritance to assert their claims. In the end, the helicopter (there’s a civil war on in Sri Lanka).
their cottages on The vaulting ambition of ment clerk, and tussle is between the “governments”—the Director Abhishek Sharma isn’t known for a particular kind of
Pedru’s Island, and Amar Mitra’s novel lies finally, Aniket Sen, the trader, the police, and the bureaucracy—and film. But the presence of Chandraprakash Dwivedi in Ram Setu’s
sail back to their real BDO. While the first Dhanapatir CharBy Dhanapati and Kunti. The former want to beau- credits—as ‘creative producer’—seems significant. Earlier this
families on the main- in its spirited depiction two continue to extort Amar Mitra, translated by tify the island and build a luxury resort, while year, Dwivedi wrote and directed the Akshay Kumar historical
land, forgetting the of the clash of wills money and other Jhimli Mukherjee Pandey the latter are desperate to preserve its rugged Samrat Prithviraj: a resounding failure. There is some kinship
women who had loy- favours from the 520 pages, ₹499 and rustic charm. It’s a familiar, 21st-century between that film’s vision of India as essentially a Hindu nation
ally looked after their islanders, Aniket Sen problem in a world overtaken by flagrant indus- and Ram Setu’s more subtle assertion of the same. When Aryan
needs for six months. The women, too, return becomes embroiled with the magical aura of port of the two parties. trialization and climate change, with little or no argues that if we can protect the Qutab Minar—“a symbol of
to their old ways, begging on the streets or Dhanapati’s stories and Kunti’s sex appeal. The vaulting ambition of Mitra’s novel lies in regard for the supernatural forces that have India’s defeat”—then we can protect Ram Setu, I was reminded
scraping together a living by selling their bod- The late Jhimli Mukherjee Pandey’s transla- its spirited depiction of this clash of wills. A plot nurtured our natural havens. that Dwivedi’s film ends with a note that Prithviraj’s death kicked
ies. To the “government” on the mainland, this tion beautifully captures this crisis. If the air on line that is thin enough to carry through a From Manik Bandopadhyay’s novel Padma- off 755 years of Indian enslavement.
arrangement smacks of prostitution; for the the island is thick with suspense, it is also tightly written short story is turned into a scaf- nadir Majhi (the fishermen of the Padma River) Can one ignore all this and enjoy Ram Setu as a fantastical
men and women involved, it is par for the pierced with a myriad songs and lore, circu- fold for a mammoth novel, with scores of Old to Amitav Ghosh’s The Hungry Tide and Gun adventure in the National Treasure mould? I suppose anything’s
course, a faux matrimony forged out of exi- lated by women with vivid imaginations. As a Wives’ Tales branching out like distributaries of Island, there is a distinguished line of novels possible if you try hard enough. I haven’t even mentioned the
gency and blessed by the elements. With the quintessentially modern tragedy unfolds, a mighty river. The inventiveness of folksy wis- that capture the changing fortunes of Bengal’s final twist, which is so outrageous I’m ashamed to say I guessed
humans gone, the island begins to sink under ignoring the rules of a mythical past, a primal dom—manifested, for instance, in the secular deltaic region. Mitra belongs to this august tra- it. One scene towards the end comes with its own fact-check,
the waters, the tides become unruly, and the conflict rears up its head. A tug of war between spin-off that the island was a joint gift of the dition of storytellers, too, and it is to Mukherjee which is fitting. Because when you get down to it, Ram Setu didn’t
tortoise swims away into the deep. The laws of Kunti and the “government” ensues over Bata- Hindu goddess Ma Kamala and Mother Mary to Pandey we must be grateful for giving his work really need to be a film. This could have been a WhatsApp for-
nature run this transient cycle of arrival and shi, with the fisherfolk wavering in their sup- Pedru—is juxtaposed against primal fears of the wider reach it deserves. ward.

Why smashburgers rule, and where you can find them

The smashburger cation to burgers came about in the early Bengaluru. in South Africa. Known for their trade-
1980s. It is believed that a certain William mark smashburgers, the chain claims to
optimises the juiciness Hunter Culbertson from Kentucky first ACE BURGERS make them from freshly minced meat
and the crust factor of created the smashburger at his burger The guys behind this all-burger dine-in with no binding agents or fillers.
joint called Dairy Cheer. This was rather and delivery kitchen say that the idea The chain’s signature (and most popu-
the meat patty. We by chance, when an employee of his dis- behind having a range of smashburgers on lar) items on the menu, the seven smash-
covered that smashing the minced meat their menu was tactical. That was to burgers (chicken and lamb mince) range
tell you where you can with a can of tinned beans while grilling bridge the gap between their signature, from the Classic Cheese, using cheddar, to
get yourself some imparted a great flavour and juiciness. huge stacked burgers and the two bite, the bacon and guacamole-enhanced
Though thinner than a regular burger short-stacked ones. They offer an exten- Bacon Cheese Guac and the gigantic
patty, smashburger patties have their own sive list of smashburgers (using chicken, Rockstar with Emmental and caramelised
Raul Dias legion of devotees for whom flavour buff and lamb mince) with the patties and onions.
feedback@livemint.com trumps heft. In the US, burger chains like fixings drawing inspiration from places as For the vegetarians, there’s the tikka
Five Guys and SmashBurger have been varied as Shanghai, Birmingham and smashburger with a paneer mince smash

W
hat exactly is a smashburger?
The basic premise is all based
on chemistry and technique.
The raw, minced burger meat (plain or
with seasonings) is first rolled into a loose
ball and literally splattered onto the blaz-
ing hot surface of a frying pan or a flat top
grill. One then smashes the meat a bit, flat-
tening it out as it cooks for the first few
seconds. The heat, coupled with the pres-
sure combines to result in a crispy, well-
browned and juicy burger patty that cooks
fast due to its greater surface area.
This is the ideal condition for a Maillard
reaction to occur—once the minced meat
is smashed down on a hot surface, the
inherent fat in the protein has nowhere to
go but back up into the burger patty itself.
Though an ancient technique, its appli-
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pioneers in the smashburger space for
over a decade now.
In India too, the smashburger has been
making slow but confident strides into the
fast food and even gourmet burger sectors
with some truly interesting premium ver-
sions. Here are a few places around the
country where you can get them.
BOSS BURGER
Staying true to the idea behind a smash-
burger, this Mumbai dine-in burger joint
and multi-city delivery kitchen has a sin-
gular iteration of this type of burger.
Ensconced within an in-house baked bri-
oche bun is a chargrilled smash buff patty
with cheese and buttered onions, served
with nacho chips.
Price: ₹399-450+ (depending on choice
The smashburger at BOSS Burger
of toppings and extra burger patty).
Available in: Mumbai, Pune, Delhi NCR
and Chandigarh.
LOUIS BURGER
Claiming to offer burger lovers a “pre-
mium burger eating experience”, with
offerings like the rather OTT gold leaf
burger, this multi-city delivery chain has
also hitched a ride onto the smashburger
bandwagon. On offer are two versions—
lamb and buff. The former is the sum of its
double lamb patty, signature animal
sauce, Emmental cheese and truffle may-
onnaise parts. The latter also features a
double buff patty with a sharp English
cheddar cheese standing in for Emmen-
tal.
Price: ₹345++ for both lamb and buff.
Available in: Mumbai, Delhi NCR and
Bangkok. There is a local Delhi-inspired
smashburger made with seekh kebab
mince and topped with hari chutney, and
a mint mayonnaise.
Boldly defying the norms and cooking
principle of this inherently meat-based
type of burger, there is also a vegetarian
smashburger made from a non-potato
mash base of assorted vegetables and
beans.
Price: ₹250+ for the vegetarian smash-
burger, and ₹290-315+ for meat.
Available in: Delhi NCR (Gurugram and
Panchsheel Park).
ROCOMAMAS
“We’re not normal” is the tagline for this
Pune outpost of the international burger
dine-in and delivery chain that originated
patty, cucumber mint mayonnaise, served
with a laccha salad.
Price: ₹149-399+
Available in: Pune (Kharadi).
145 CAFÉ & BAR
Though not the closest representation of
a smashburger in terms of size—what with
it weighing in at a portly 160g—this burger
gets the crispiness and juiciness of the
patty spot on. Served alongside a portion
of fries, the in-house made bun houses a
smash buffalo meat patty that’s topped
with smoked cheddar, a sweetish orange-
hued house sauce, mustard, aioli and pick-
led onion rings.
Price: ₹450+
Available in: Mumbai (Kalaghoda,
Kamala Mills, Bandra and Andheri).