MUMBAI, NEw DELHI, BENGALuRu, kOLkATA, CHENNAI, AHMEDABAD, HyDERABAD, CHANDIGARH*, puNE*
124
Friday, May 26, 2023
mint primer
Can a GST cut aid
two-wheelers’
sputtering sales?
BY SUMANT BANERJI
Automobiles have posted a strong post-pandemic rebound. But one
segment continues to struggle: two-wheeler sales are still 25% below
the pre pandemic peak. Automotive dealers are calling for a 10% GST
cut to help a revival. Will it help?
Losing sheen
Wholesale two-wheeler sales in the
past decade.
25
Sales (million units)
20
14.8
15
10
5 services tax revenue has been
0
2013-14
What’s happening with
1 two-wheeler sales?
After declining heavily for three
fiscals in a row between 2019-20
and 2021-22, two-wheeler sales
grew 17.8% in 2022-23, the highest
in a year in over a decade. But this
was on a very low base and the
5-year CAGR for the sector is still a
negative 3.8% while the 10-year
CAGR is a measly 2%. In absolute
terms, sales are still below 2014-15
levels and about a quarter less than
the pre-pandemic peak of 2018-19.
The worst performers are the
100-125cc commuter motorcycles,
which still account for half of
overall two-wheeler industry
volumes. This segment has shrunk
below levels from a decade ago in
2012-13.
Will a GST cut really
4 help?
Two-wheelers attract the highest
rate of GST at 28%. The demand
for it to be put in the 18% slab has
been around for some time and in
2020, finance minister Nirmala
Sitharaman agreed that two-
wheelers deserve a GST reduction.
A 10% cut would make two-
wheelers cheaper, offsetting some
of the price hikes of the past. It
could potentially bring new
consumers. The overall recovery
would however depend on how
the economy does in general,
especially at the bottom to middle
of the pyramid.
MINT PODCASTS
PRE-RETIREMENT PLANS
Tune in to this episode as Mint’s Satya
Sontanam interviews Kalpeh Ashar,
certified financial
planner at Full Cir-
cle Financial Plan-
ners and Advisors.
Gain valuable
insights into the
crucial financial
factors that NRIs should consider
before returning to India for retire-
ment after living abroad.
livemint.com
Motorcycles still have the lion’s
share of the two-wheeler segment.
Mopeds Motorcycles
2.8
15.9
32.7
FY23
Share %
64.5
2022-23 Scooters
Source: SIAM
SATISH KUMAR/MINT
What are the reasons
2 for the poor show?
A number of factors including
high inflation, stagnant wages and
rising unemployment. Soaring
petrol price have been a major
speed breaker. Finally, a raft of
regulatory changes beginning with
BS IV to BS VI emission norms in
2020 and more stringent safety
standards have come into force.
This has impacted every sub
segment. The price of India’s
largest selling scooter Honda
Activa has gone up from ₹52,000
in 2016 to ₹88,000 in 2023. The
Bajaj Pulsar has seen its price go
up from ₹72,000 in 2016 to
₹150,000 in 2023 while the price
of Hero Splendor jumped from
46,000 to ₹74,801.
3 Have scooters done better
than motorcycles?
Scooter sales last year were up 30% to over
5 million units. Over the last 15 years,
scooters have gained ground, increasing
their share from under 20% in 2011-12 to
nearly 33% last year. But its last 5-year
CAGR is marginally worse than
motorcycles at -3.6% to motorcycles’ -3.4%.
The slowdown in two-wheelers cuts across
urban and rural India.
Have EVs begun to
5 play spoilsport?
Helped by generous subsidies,
electric two wheelers are booming.
In 2022-23, the segment grew 60%
but was still under 1 million units,
compared with the traditional
industry’s 15.8 mn units. In Delhi,
Bengaluru, Pune and Hyderabad
there seems to be an impact. But
buyers have begun to put off
purchases hoping for more electric
options. A recent govt decision to
reduce subsidies will make electric
two-wheelers expensive. But the
reprieve for petrol two-wheelers,
even with a GST cut, could be
short lived.
INDIA’S 2047 PROSPECTS
In this episode we discuss the NITI
Aayog’s governing council summit,
where the Prime
Minister and chief
ministers will delib-
erate on India’s path
to becoming a
developed nation
by 2047. Discover
the opportunities and challenges that
should be considered in this blue-
print for the future.
VOL. 6 NO.
QUICK EDIT
Target
in sight
There’s now roughly an equal
chance of India’s 6.5% gross
domestic product (GDP) growth
projection for 2023-24 being
achieved as there exists of it
being missed, going by chief
economic adviser V. Anantha
Nageswaran’s comments this
week. He said he is slightly more
inclined to make this assess-
ment than earlier. The annual
Economic Survey published by
the Centre with him at the
effort’s helm had seen risks
tilted towards that target being
missed. It is encouraging to note
that headwinds for growth are
seen to be easing. Credit growth
has been strong at a mid-teen
rate, placing it at its highest in
more than a decade. Goods and
hitting new highs, while the ser-
vices sector has held up well. If
crude oil prices stay stable,
inflation, which has dipped
under 5%, could cool further
and grant our economy some
price stability. Of course, exter-
nal risks remain, especially for
Indian exports. A hard landing
for the US economy, for exam-
ple, could slow down our over-
seas growth engines and leave
our economy reliant on domes-
tic impulses. How exactly the
economic scenario unfolds,
though, will depend on many
factors. Even El Nino.
MINT METRIC
by Bibek Debroy
A man spent twenty years in jail,
Heroin possession was the tale.
But a case completely untrue,
Framed with powder, through and through,
By a cop on a revenge trail.
QUOTE OF THE DAY
We need to set new goals and
achieve them through innovative
methods... to deal with challenges
arising out of the ever-evolving
global situation... Technology
improves the utilization of the
available resources. It acts as a
force multiplier.
RAJNATH SINGH
DEFENCE MINISTER
RETAINING BPO TALENT
In this episode of The Working Life R.
Swaminathan, chief people officer at
WNS Global Servi-
ces, shares insights
on the transforma-
tion of call centre
and BPO jobs into
long-term career
opportunities. Dis-
cover how WNS has attracted and
retained employees for over a decade.
Tune in for valuable career insights.
 PLAIN FACTS

Data recap: Summer

drinks, hiring freeze
BY MANJUL PAUL
very Friday, Plain Facts publishes a compilation of data-based insights, complete with easy-to-read charts, to help you

E delve deeper into the stories reported by Mint in the week gone by. Declining raw material prices are encouraging com-
panies to make price cuts. The Reserve Bank of India announced the withdrawal of ₹2,000 currency banknotes. Campus
hiring is expected to see a slowdown in the coming months.

Bitter Sugar Softening Prices

Average intake of sugar in metro cities of India by gender (gm/day) Y-o-Y change (%) in raw material prices,
Men Women Q4FY23 (as reported by top FMCG cos) 21
18
Ahmedabad
Mumbai 8
Crude Caustic Brent Corrugated
Delhi palm oil soda crude boxes Laminates
Barley Milk Flour
Bengaluru powder
Chennai -9 (SMP)
Hyderabad -16 -16

Total -25
0 5 10 15 20 25 30
Dietary data of 5,127 individuals across six metros analysed for sugar intake SMP: Skimmed milk powder
-39 Source: Mint research
Source: ICMR-National Institute of Nutrition survey, 2019

WHEN THE summer arrives, Indians seek relief in
popular packaged summer drinks. However, many well-
known drinks have sugar levels that could exceed our
full-day limit with just a single pack, a Mint analysis
showed. Indians already have a deep-seated love for
sugar, and the average intake in cities such as Mumbai
and Ahmedabad exceeds the healthy limit. The average
intake is 18.7 grams and 20.2 grams per day among men
and women respectively, a government survey showed.
RUSSIA’S INVASION of Ukraine last year caused a
surge in input prices for businesses, straining their
finances. Companies passed on these costs to
consumers, which dampened demand across products
such as edible oils, cookies, and soaps. However, certain
commodities are now cooling significantly. Several
businesses are refraining from raising prices, and some
are even cutting them, providing consumers some relief
from high inflation, Mint reported.

Quick Exit

13.8%
THAT WAS the share of the ₹2,000 denomination in the
total value of banknotes in circulation at the end of fiscal
year 2021-22. The Reserve Bank of India decided last week
to withdraw the denomination from circulation, asking
banks to stop issuing the banknotes immediately. In a
statement, RBI stated that the goal of introducing ₹2,000
notes was met once other denominations became available
in sufficient quantities following demonetization in 2016.

Hiring Slowdown The Cash Rule

Number of campus hirings by IT companies Monthly average value of cash replenishment at ATMs (in  cr)
1.5
150,000 90,000 155,000
1.25

280,000 FY21 600,000 230,000 1

FY19 FY20 FY22 FY23 FY24*
0.75

0.5

0.25

0
Apr Jul Oct Jan Apr Oct Mar
2021 2022 2023
*Projected Source: Teamlease Digital Festive months have been highlighted Source: CMS Info Systems

INDIA’S IT companies are likely to cut campus hiring by CASH CONTINUES to dominate the Indian economy
at least 40% due to strong bench strength, fewer new despite the soaring popularity of digital payments and
orders, and a lack of visibility into when the slowdown UPI transactions, according to data shared by CMS Info

18
phase will end, an analysis by recruiter TeamLease
Digital said. IT firms are likely to hire 155,000 students in
FY24, down from the 230,000 recruited in the previous
year and 600,000 in FY22. Recruiters studying talent
demand and supply have warned that it is critical to
continue hiring from campuses to gain cost leverage.
Systems. An average ATM in India was replenished with
₹1.35 crore of cash a month in the FY23, up 10.1% from
the previous year. The cash replenishments were
stronger in the festive months and in the states of
Karnataka, Chhattisgarh and Andhra Pradesh. CMS Info
Systems has a 46% share in ATM cash management.

Meta Penalized

1.3 billion
THAT’S THE penalty that Meta Platforms Inc was
charged with by the European Union privacy regulators for
sending users’ data to the US. Meta was given five months

$ to suspend any future transfer of personal data and six

months to stop the unlawful processing, including storage,
in the US of transferred personal EU data. The tech giant
noted that it would appeal to the Irish Data Protection
Commission, which acts on behalf of the EU.

Changing Preferences billion Chart of the Week: Use and Misuse

Share (%) of four-wheeler registrations, by fuel Number of ordinances issued by the central government
Diesel Petrol Electric Others 35
2014 30
2015
2016 25
2017 20
2018
2019 15
2020 10
2021
2022 5
2023 0
0
0 20 40 60 80 100 1952 1975 2000 2023
Data for 2023 is available until mid-May. Source: Parliamentary Handbook, Ministry of Parliamentary Affairs;
Source: Vahan database, Mint calculations PRS Legislative Research

A GOVERNMENT panel recently recommended a ban A RECENT top court order on the Delhi government’s
on diesel-run four-wheelers by 2027 in large urban powers was nullified on 19 May by an ordinance issued
centres. The Centre’s Vahan database shows that the by the Centre. In the 2020s so far, an average of 7.7
share of diesel cars was already declining. Nearly half of ordinances have been issued per year,
all cars registered in India were diesel-run a decade ago. higher than in the 2000s. However, this
But the trend began reversing in favour of petrol cars is still well below the rate that prevailed
after diesel prices became market-linked in 2014. As of between the 1970s and the 1990s.
May 2023, the share of diesel vehicles has come down to Follow us on #MintCharts on our
18%, and that of petrol vehicles has increased to 61%. social media handles.
PARAS JAIN/MINT

TOP FIVE TRENDING TELUGU WEB SERIES TOP FIVE TRENDING ANIMATED MOVIES

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 MuMBAI, NEw DELHI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE*
Friday, May 26, 2023
SENSEX 61,872.62 98.84
Banks to flag big ₹2K
deposits to I-T dept
They are mandated to report such transactions to tax dept
Gireesh Chandra Prasad &
Subhash Narayan
NEw DELHI
B
anks will be required to
notify the income tax
department about large
cash deposits of ₹2,000
currency notes above a
threshold as part of the statement of
financial transactions (SFT) they are
mandated to submit to the tax
authority annually.
However, the exact currency
denomination of the deposits does
not need to be specified.
This would bring large cash
deposits made during the ongoing
phasing out of ₹2,000 notes under
the radar of tax officials, who rou-
tinely comb through the data to
detect tax evasion, two people
informed about the development
said on the condition of anonymity.
The reporting thresholds stand at
₹10 lakh for term and savings depos-
its and ₹50 lakh for current account
deposits.
To be sure, this reporting system
has been in existence for a long time
and is not a new provision in the
wake of RBI’s decision to recall
₹2,000 notes, said a third person,
who also spoke on condition of ano-
nymity.
livemint.com
NIFTY 18,321.15 35.75
MONEy TRAIl
CAREFUL CHECK
ThIS system of ThE tax dept has
reporting has been been emphasizing
there for a long time tax compliance
“Everyone may keep some funds
in cash for a rainy day. But, can there
be a genuine reason for anyone to
maintain large piles of cash, espe-
cially high-denomination notes,
instead of trying to earn interest?
That behaviour should merit an
explanation, especially if the deposit
is disproportionate to the income
DOLLAR ₹82.74
SOME banks are
asking for IDs as a
measure of caution
reported in the tax return. So, that
question will be asked,” one of the
two people cited above said on the
condition of anonymity. The third
person, who is knowledgeable about
the working of the tax department,
said it might be premature to specu-
TURN TO PAGE 6
VOL. 6 NO. 124
Why Nusli Wadia’s SOS
couldn’t save Go First
₹0.07 EURO ₹88.79
RBI presses
work 24x7
to pump out
₹500 notes
Gopika Gopakumar
gopika.g@htlive.com
MUMBAI
T
he four currency print-
ing presses of the
Reserve Bank of India
(RBI) are working round the
clock to print ₹500 notes to
replace ₹2,000 notes worth
the ₹3.62 trillion being with-
drawn from circulation, two
people aware of the matter
said.
This is because more cus-
tomers are coming forward to
exchange ₹2,000 notes
instead of depositing them in
their accounts.
A visit to Mumbai’s Zaveri
Bazaar, the heart of the city’s
gold market, revealed that
crowds at bank branches have
increased. Many customers
Mint spoke to had come to
exchange ₹2,000 notes at
bank branches on behalf of
their employers.
“One customer has been at
the branch since 10 am. He
deposited ₹20,000 in differ-
ent lots,” said an official at a
PSU bank branch. “People are
just walking in to exchange
cash, while deposits have been
fewer. Yet, the branch has
breached the daily maximum
limit for accepting deposits,”
TURN TO PAGE 6
₹0.27 OIL $77.37
Brokers asked to
run warnings on
F&O trading risks
Ram Sahgal
ram.sahgal@livemint.com
MUMBAI
S
warms of inexperienced
retail investors, lured by
the promise of getting
rich quickly by trading equity
derivatives, have faced sub-
stantial losses recently,
prompting the market regula-
tor to intervene
The Securities and
Exchange Board of India (Sebi)
has asked stock brokers to
alert investors about the risks
of trading in futures and
options (F&O) on their web-
sites, as well as every time they
place a derivatives order, two
brokers confirmed.
Brokers must now alert
their customers about facts on
derivatives trading such as;
nine out of 10 individual trad-
ers in equities F&O incurred
net losses; on average, they
had net trading loss close to
₹50,000; they also spent 28%
more of net trading losses as
transaction costs; and in the
rare instances when they made
net trading profits, they
incurred 15-50% of such prof-
its as transaction costs.
An email sent to a Sebi
spokesperson seeking com-
ment remained unanswered
till press time.
Rs. 10.00
Europe’s largest economy
uP12 Germany in recession
$0.81 GOLD ₹60,133
Buyers beware
Move follows Sebi diktat
after huge losses faced
by investors.
Derivatives turnover *
(in ₹ trn)
16,952 38,222
(FY22) (FY23)
*notional turnover
Cash turnover (in ₹ trn)
FY22 166
FY23 133
Source: NSE
“It’s akin to the warning on
cigarette packets about the
harmful effects of tobacco.
Does it stop people from
smoking?” questioned Rajesh
Baheti, director of broking
company Crosseas Capital,
when asked whether such dis-
claimers would act as an effec-
tive deterrent. He claimed that
the disclaimers come in the
wake of discount brokers “lur-
ing” retail investors to trade on
equities options, and it was
more like “caveat emptor” — a
note of caution for buyers.
Interestingly, Nithin
Kamath, co-founder of
TURN TO PAGE 6
20 PAGES
uP10
₹278
DON’T MISS
Energy security key for growth
sustainability: CEA Nageswaran
Energy security will be the single most crucial
factor in sustaining India’s growth rate, said
chief economic advisor V Anantha
Nageswaran on Thursday at the CII annual
general meeting. He stressed on the need to
continue funding fossil fuel sector. >P2
No angel tax exemption for
three popular jurisdictions
CBDT’s new rules on angel tax —taxation of
share premium received by unlisted firms—
do not cover private, non-banking entities
such as portfolio investors from countries
like Singapore, Mauritius and the
Netherlands, according to a notification. >P2
Ola Electric hires Goldman,
Kotak for IPO in early 2024
Ola Electric, India’s top electric two-wheeler
maker, has hired Goldman Sachs Group and
Kotak Mahindra Capital to manage a
potential initial public offering (IPO) early
next year, two people aware of the matter
said. >P8
NOTE TO READERS The Media
Marketing Initiative on Page 8 is the
equivalent of a paid-for advertisement,
and no Mint journalists were involved in
creating it. Readers would do well to treat
it as an advertisement.
02 Friday, 26 May 2023
MuMbai ECONOMY & POLICY LIVEMINT.COM

m MINT SHORTS
Govt to crack down on developers
Energy security is critical to No angel tax
relief for
delaying power projects
New Delhi: Power and New & Renewable Energy Minister R K
Singh on Thursday said the government will crack down on
developers of power projects who miss the scheduled commer-
sustain India’s growth: CEA 3 popular
jurisdictions
cial date of operation or deadline to complete the project.
Addressing a CII conference, Singh said electricity generation Gireesh Chandra Prasad
capacity addition is a big challenge, as people are sitting on sev- gireesh.p@livemint.com
eral projects won under the bidding process. PTI ‘Continued funding for fossil fuels will ensure growth and counter external headwinds’ NEW DELHI

T
he Central Board of
Insurance regulator to launch Gulveen Aulakh vatization was critical, he said, despite Direct Taxes’ (CBDT)
gulveen.aulakh@livemint.com the “ebbs and flows” for various reasons new rules on angel tax —
new portal Bima Sugam soon NEW DELHI such as time-consuming processes or lit- taxation of share premium
ISTOCK
igation by stakeholders. received by unlisted compa-

E
nergy security, including the use He added that public sector banks nies—do not cover private,
of fossil fuels, will be the single were being capitalized and in a good non-banking entities such as
most crucial factor in sustaining shape and were hence going to be more portfolio investors from coun-
India’s growth rate, chief eco- valuable, and stressed that adopting pri- tries like Singapore, Mauritius
nomic advisor V Anantha vate sector mechanisms within the pub- and the Netherlands, accord-
Nageswaran said on Thursday, amid lic sector framework would provide bet- ing to an official notification.
mounting worries over geopolitical insta- ter outcomes. As a result, these classes of
bility and the impact of climate change. He also noted that as the investment investors from the popular
“Energy is going to be an important cycle unfolds through foreign direct jurisdictions will not get
driver for economic growth and it is investment or domestic investment, exemption from the contro-
energy security that is coming under a India will see employment generation versial provision in Indian tax
lot of pressure thanks to geopolitical and income growth happening at differ- law introduced as an anti-eva-
New Delhi: The insurance regulator is set to introduce the developments and thanks to climate ent income strata, which in turn, will sion measure.
Bima Sugam portal, offering customers a seamless and change, etc. (For) India, if at all there is a underpin consumption growth. The tax authority, however,
comprehensive one-stop solution for all their insurance single most important worry in my mind Chief economic advisor V Anantha Nageswaran addressing the CII annual general “I believe the consumption growth will has listed 21 other countries
needs. Insurance Regulatory and Development Authority for sustaining the growth rate that we meeting in New Delhi. PTI be an offshoot of investment and income including the UK, the US, Ger-
of India (Irdai) chairman Debasish Panda, speaking at the have been able to achieve in the last two generation to this time, it will be more many and Australia as jurisdic-
CII annual general meeting, said all stakeholders and regu- to three years, it is energy security,” he investments into digital transformation possible, more importantly, as realisti- sustainable without necessarily jeopar- tions portfolio investors from
lators are now contemplating a “UPI (united payment inter- said at the CII annual general meeting. for not only financial inclusion, but also cally as possible,” he said. dizing our external balances,” he said. which are exempt from angel
face)-like moment”. STAFF WRITER Nageswaran stressed the importance credit assessment and credit judgement, On whether the United States Federal On capital inflows in the form of tax. Also, endowment funds
of continued funding for fossil fuels, in order to ensure the financial cycle in Reserve would increase rates further, the investments into various sectors, the associated with universities,
even as India moves towards a India, which has just begun, lasts CEA said that he did not expect CEA said that $66 billion hospitals or charities, pension
IPS officer Praveen Sood takes better balance of renewables much longer than the previ- liquidity to be tightened fur- grossed in the first 11 months funds and broad-based pooled
in the energy mix. This, he ous ones. ther. He also expected the of FY23 compared to $84 in investment vehicles meeting
over as new CBI director
New Delhi: Senior IPS officer Praveen Sood took over as the new
said, was necessary to not
jeopardize growth. $66bn
FDI inflows in the
“It’s important to US Congress and US Presi-
ensure that this cycle lasts dent Joe Biden to reach an
total
bn $84
FY22—due to rising inter-
est rates and geopolitical
certain conditions are exempt
from angel tax.
CBI director on Thursday and will be in the post for two years, He said financial insti- longer and all the lessons agreement before 1 June uncertainties—was not a The CBDT order also
officials said. On his last working day, the outgoing director, tutions should look at the first 11 months learned from the previous to raise the debt ceiling to FDI inflows bad performance. How- showed that without any geo-
Subodh Kumar Jaiswal, handed Sood the charge of the agency at overall environmental of FY23 cycle are not forgotten ₹35 trillion, failing which it in FY22 ever, investor-state inter- graphical restriction, govern-
its headquarters, they said. Sood is a 1986-batch Indian Police costs when evaluating green quickly. Therefore this is will trigger a debt default. actions, protection ment and government-related
Service (IPS) officer of the Karnataka cadre and was the state’s projects, and be aware of where we need to make sure The CEA said in response to regimes, stability of tax poli- investors like central banks,
director general of police (DGP), officials said. PTI ‘green washing’—projects that that whatever technological a question on the need for under- cies, last mile connectivity and sovereign wealth funds, inter-
pass off as green but actually end up investments we need to make and also in taking privatization, that both privatiza- plug-and-play issues in the infrastruc- national or multilateral orga-
damaging the environment through skill sets and capabilities that we need to tion and monetization are important for ture on the ground, were areas that nizations or government con-
ESIC-run social security scheme unintended consequences. make to ensure that credit judgement is unlocking the efficiency of assets. The could be improved upon to bring more trolled entities are exempt
The financial sector must make done as scrupulously, and as correctly as need for keeping the momentum of pri- funds to the country. from angel tax.
adds 1.3 mn members in March
ISTOCK

Record food grain ‘India may join offshore wind alliance’

output likely: Govt Rituraj Baruah
rituraj.baruah@livemint.com
into developing countries,
then you start looking at not a
NEW DELHI very pretty picture. Develop-
Puja Das release of the 3rd advanced ing countries have in fact been

I
puja.das@livemint.com estimates. ndia is “very actively” con- progressively receiving declin-
NEW DELHI Total production of rice sidering joining the Global ing shares year-on-year.
during the 2022-23 crop year Offshore Wind Alliance in an Developing and emerging

F
New Delhi: Over 1.3 million new members joined the ood grain production in is estimated to be 135.5 mt as attempt to improve its energy markets probably have half the
Employees‘ State Insurance Corporation or ESIC-run the crop year ending compared to 129.4 mt in the transition standing, said Gauri world population, but they
social security scheme in March 2023, according to official June is likely to hit an all- previous year, while wheat Singh, deputy director general receive just 15% of the financ-
data released on Thursday. The latest data is part of a time high of 330.5 million ton- output is seen to be 112.7 mt of the International Renewable ing for renewables. And if you
report — Payroll Reporting in India: An Employment Per- nes against last year’s 315.6 mt, against the previous year’s Energy Agency (IRENA), go even further to the least
spective - March, 2023 — released by the National Statisti- according to the agriculture estimated production of 107.7 which played a key role in developing countries then
cal Office (NSO). It shows that the gross new enrolments ministry’s third advance esti- mt. forming the alliance. The orga- they attracted less than 1% of
with ESIC rose to 14.9 million in 2021-22, from 11.5 mn in mates. This is mainly because This is despite a hot Febru- nization has invited India to the renewable energy invest-
2020-21. It was 15.1 million in 2019-20 and 14.9 million in of the estimated record pro- ary and unseasonal rains dur- join it, which would help New ments on an average between
2018-19. SAURAV ANAND duction of wheat, rice and ing the harvesting period in Delhi in terms of technology 2013 and 2020.
maize. March and early and knowledge transfer, she global community could come cured by 2030. I think it’s a I think what’s needed is to
According to Production April. said in an interview. So far 14 together with strong showing hefty target and that gives us a relook at how MDBs (multilat-
SC dismisses Sukesh’s plea to be the government’s in the crop year The estimated countries—Australia, Belgium, on offshore wind. So, there was lot of reason to cheer. eral development banks) and

‘
second advance higher produc- Colombia, Denmark, Ger- an alliance that got formed How do you see the flow IFIs (international financial
shifted to prison outside Delhi estimates
ending June
tion of wheat many, Ireland, Japan, the called the Global Offshore of climate institutions)
is likely to hit
New Delhi: The Supreme Court has dismissed a plea by alleged released in Feb- indicates more Netherlands, Norway, Portu- Wind Alliance, which is being finance to are function-
330.5 mt Developing and
conman Sukesh Chandrasekhar and his wife seeking a direction ruary, foodgrains availability in the gal, Spain, Saint Lucia, the UK, coordinated by IRENA, and developing ing. That is a
to authorities to shift them from Mandoli jail to a prison outside production was against last domestic market and the US —have joined the has many countries as its mem- countries? emerging markets have low-hanging
Delhi citing security concerns. SC said the writ petition was seen to be at year’s 315.6 mt than expected alliance. Edited ber or a partner If you look fruit because
half of world
“without substance” and there was “no justification to grant 323.5 mt. The earlier. The gov- excerpts: INTERVIEW in
m this whole at the global most of the
indulgence” to the petitioners. PTI Ministry had set a ernment in May collaboration. I investments population, but they money that
target of achieving 328 mt last year banned exports of India plans to think India is into renewa- receive just 15% of goes to MDBs
foodgrain in this agricultural wheat, followed by its prod- set up offshore wind pro- also considering very actively ble energy, financing for RE and all of their
TDP to attend new Parliament year. ucts atta (wheat flour), maida jects in Gujarat and Tamil becoming a part of this alli- they were
Gauri Singh
capital comes
“Agriculture sector is devel- and sooji (semolina) in August Nadu. Will we see coordi- ance. It has been invited. almost half-a- DDG, International Renewable from devel-
building inauguration oping day by day due to the to keep domestic prices in nation of IRENA and India We are expecting in the trillion (USD) oped coun-
Energy Agency
Amaravati: The Telugu Desam Party (TDP) on Thursday said hard work of farmers, profi- check. in this space? next two months to see the last year. So, it tries. If they
it will take part in the inauguration of the new Parliament build- ciency of scientists, and farm- The minister told the Lok We had, along with the first offshore wind procure- was a big can actually
ing scheduled on 28 May in New Delhi. TDP supremo N Chan- er-friendly policies of the gov- Sabha on 15 March that there Global Wind Energy Council ment tender coming out (in boost to the amount of capital start looking at reforms hap-
drababu Naidu has instructed Rajya Sabha MP Kanakamedala ernment,” agriculture minis- was no proposal from the min- and a few member-states, gone India) with the kind of visibil- that’s flowing to renewable pening there that will at least
Ravindra Kumar to represent the party during the inauguration ter Narendra Singh Tomar istry to ease the export restric- to the UN last year with the ity that the ministry is talking energy. But then when you open up the flows to the devel-
of the new Parliament building, a party statement said. PTI said in a press statement on the tions of wheat. very ambitious goal of how the of -- about 37 GW getting pro- look at how much has gone oping countries.

Seed stocks to be beefed up as part of El Nino contingency preparation CORRECTIONS AND

CLARIFICATIONS
Mint welcomes comments,
Puja Das until 15 August. in kharif season and 1% in rabi (April-September) kharif sea- request to NSC. If seeds suggestions or complaints
puja.das@livemint.com “The sowing with normal season. “But this year, keeping son seed reserves is 640,110 remain in stock in any season, about errors.
NEW DELHI seeds goes on till 15 August for in view of some early predic- quintals, of which 7,900 quin- they are sold in the open mar-
Readers can alert the
the kharif season. Post that, if a tions of having less than nor- tals would be foundation ket.
newsroom to any errors in the

T
he government is
increasing kharif seed
reserves to 4% of total
seeds in the country -- up from
the usual 1% level -- as part of a
contingency plan for drought-
like situations amid El Nino
predictions.
Each year, the government
sets targets for states to keep
seeds of various crops under
the National Seed Reserve
Scheme in the event of
droughts or any other excep-
tional weather event. Stocks in
the reserve are not distributed
drought-like situation arises
or there is a probability of
drought, the government
through the National Seeds
Corporation and state seed
corporation distributes short-
duration crop seed varieties to
farmers as per their demand or
the plan of the state,” an agri-
culture ministry official said.
A short-duration cover crop
is grown or managed for 45 to
60 days. Cover crops are not
intended for harvest and are
managed to maintain and
enhance the sustainability of a
mal rainfall, the department
has increased the reserve limit
from 1% to 4% for kharif as we
heavily depend on rainfall for
kharif crops,” the official said.
“We have fixed the quantity
for states crop-wise, which has
to be in the reserve. We
The government sets targets for states to keep seeds of various requested the states on 18 May
crops under the National Seed Reserve Scheme. to send us replies on which
crop seeds they would like to
production system by improv- varieties of seeds for all crops, keep in their reserve as an
ing soil fertility, water quality, including paddy, soybean, cot- alternative if a drought-like
and lead to the suppression of ton and millets like ragi and situation arises,” the official
weeds, soil erosion and pests. sorghum in the kharif season. added.
The government maintains The share in the reserve is 1% The target for the 2023-24
seeds, 564,310 quintals certi-
fied seeds, and 67,900 quintals
certified seeds for Northeast-
ern states. The reserves ensure
that there is no shortage of
seeds for sowing in any part of
the country. They act as a
buffer to take care of farmers‘
sowing requirements.
For northeastern states, the
agency serving the region is
the National Seeds Corpora-
tion (NSC). Besides those
states, if any state requires
seeds and doesn’t have ade-
quate stocks, it can make a
India Meteorological
Department (IMD) predicts El
Nino conditions to form in
July, and to be felt in the sec-
ond half of the June-Septem-
ber Southwest monsoon sea-
son, that is in August and Sep-
tember.
As part of its drought man-
agement plan amid forecasts
of El Nino compromising
monsoon rains, the agricul-
ture ministry has formulated
contingency plans in 650 dis-
tricts. Increasing seed reserves
is part of this plan.
paper by emailing us, with your
full name and address to
feedback@livemint.com.
It is our policy to promptly
respond to all complaints.
Readers dissatisfied with the
response or concerned about
Mint’s journalistic integrity may
write directly to the editor by
sending an email to
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Conduct that governs our
newsroom is available at
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First published in February 2007 to serve as an unbiased and clear-minded chronicler of the Indian Dream.

SRUTHIJITH KURUPICHANKANDY (EDITOR); PUBLISHED/PRINTED BY MANHAR KAPOOR ON BEHALF OF HT MEDIA LTD, 9th Floor, Tower 3, Indiabulls Finance Centre, Senapati Bapat Marg, Elphinstone Road (West), Mumbai-400013
Printed at HT Media Ltd. Press at Plot No. 6, TTC Industrial Area, Thane - Belapur Road, Navi Mumbai - 400 708.
RNI Registration MAHENG/2018/76720; Mint welcomes readers’ responses to all articles and editorials. Please include your full name, address and telephone number. Send in your views to the editor at letters@livemint.com. ©2023 HT Media Ltd All Rights Reserved
 RAMBAGH PALACE, JAIPUR
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04 Friday, 26 May 2023
MuMbai MARK TO MARKET LIVEMINT.COM

S&P BSE Sensex Nifty 50 Nifty 500 Nifty Next 50 Nifty 100 S&P BSE Mid-cap S&P BSE Small Cap
CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE

61,917.99 0.23 18,321.15 0.20 15,555.25 0.25 41,213.30 0.56 18,213.60 0.24 26,585.68 0.37 30,007.81 0.25
PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN

61,773.78 61,706.13 18,285.40 18,268.90 15,515.95 15,510.20 40,984.05 41,005.20 18,170.00 18,158.30 26,488.42 26,448.56 29,934.22 29,963.66
HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW

61,925.72 61,484.66 18,338.10 18,202.40 15,568.55 15,474.15 41,275.20 40,944.60 18,230.35 18,102.15 26,590.16 26,443.75 30,042.25 29,933.37

m MINT SHORTS
Singapore dollar at record
Nykaa feels blues despite pink sale
high versus ringgit Vineetha Sampath
Losing sheen pace has slowed in the past two quarters. augurs well. “The focus on a mix of prof-
The Singaporean dollar surged to the strongest level on vineetha.s@livemint.com Sure, the March quarter is seasonally itability and stable growth over superla-
record against the Malaysian ringgit, with the latter suf- The pace of Nykaa’s gross merchandise value growth has slowed down in the weak and this means sequential drop in tive growth is evident,” said analysts at

F
fering more from weakening confidence in China’s eco- SN E-Commerce Ventures Ltd,
nomic recovery. Singapore’s currency climbed 1.3% in the parent company of Nykaa,
the past four sessions against the ringgit, posting its best has some bright spots in its
weekly advance in more than three months, as the island March quarter results. Consoli-
country’s dollar benefited from successive policy tight- dated Ebitda margin rose 147
ening and capital inflows. In contrast, ringgit has been basis points (bps) year-on-year and
impacted by a weaker China economic outlook weighing nearly 9bps sequentially to 5.4%. This is
on exports growth as well as sluggish oil prices.“Histori- the first time in the March quarter
cal ringgit volatility is picking up again, and I think that where Nykaa’s Ebitda margin has risen
the main driver is the market’s incrementally more bear- sequentially post a seasonally-best
ish views on China,” said Galvin Chia, a currency strate- December quarter, said JM Financial
gist at NatWest Markets. Recent worries about the sus- Institutional Securities analysts in a 25
tainability of China’s economic recovery and the poten- May report.
tial disruption to the consumer sector from another covid In the March quarter, Nykaa bene-
wave poses new headwinds, he added. BLOOMBERG fited from factors such as moderation in
fulfilment costs. In its mainstay beauty
and personal care (BPC) segment, ful-
filment cost fell to ₹86 per order, a mul-
ti-quarter low. This was driven by an
increase in regional coverage of ware-
houses.
It is encouraging that Nykaa sees fur-
ther tools for margin improvement. In
its earnings call, the company said it is
looking to control all items of costs. It
expects marketing costs to fall as new
customer to repeat customer ratio
improves. Nykaa has seen this trend
play out in beauty business where 78%
last two quarters. key operating metrics such as the num- Nuvama Research.
Consolidated gross merchandise value (in  crore) Year-on-year change (in %) (right-hand scale) ber of orders. But the fall in the last quar- To be sure, Nykaa’s fashion and other
ter is higher than that seen in the March businesses continue to be in the red.
3,000 75
2022 quarter. Other segments include NykaaMan,
For perspective, BPC orders fell by SuperStore by Nykaa, international
2,400 60
7.4% last quarter compared brands, Little Black Book
to a 4% drop in the March FOR AND and Nudge. These segments
2022 quarter. Note that this AGAiNST were funded by cash flows
1,800 45 is despite Nykaa coming up from the BPC business.
with a Pink Love Sale in NYKAA sees further Analysts at Kotak Institu-
February. Also, annual tools for margin
improvement led by
tional Equities expect this to
1,200 30 unique transacting custom- lower marketing be the case in FY24 too. The
ers saw an addition of 0.4 expenses broking firm expects the
million last quarter versus fashion business to take
600 15 0.5 million in same period DEMAND more time to achieve Ebitda
environment has not
last year. seen a significant break-even.
While Nykaa’s manage- uptick and that is a Stemming losses in fash-
0 0
Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 ment has reiterated the cause of worry ion and other businesses
Source: Company, JM Financial
minimal impact of macro would improve overall mar-
environment on its pre- gin performance and boost
SATISH KUMAR/MINT
mium customer base, analysts at JM investor sentiments for the stock, which
of gross merchandise value (GMV) is rose due to investments in new initia- Financial believe the pressure on dis- has halved from its 52-week high of
from existing customers. In fashion seg- tives. The company expects this cretionary spends in Q4FY23 did finally ₹257.17 apiece in June. A turnaround in
ment, a relatively newer vertical, the expense head to decline in FY24. impact Nykaa’s BPC segment. Muted demand and hence growth is also cru-
ratio of new to repeat customers is at But it is worth noting that the discretionary demand also impacted the cial. As inflation concerns abate,
50:50. Scale up of eB2B business— demand environment hasn’t seen a sig- fashion segment where orders fell by demand would see an uptick, as per the
SuperStore by Nykaa—would also aid in nificant uptick and that is a cause of nearly 18% sequentially. company. But intensifying competition
margin growth. worry. Nykaa’s consolidated GMV has However, Nykaa’s management in BPC and fashion could play spoilsport
Moreover, in FY23, employee costs increased year-on-year, but growth emphasized profitable growth and that and investors should watch out for that.

Last year, Western sanctions on Russia pushed European

buyers to pay top dollar for fuel to fire power plants. Page Industries badly needs to script a new chapter on growth
Global thermal coal prices Harsha Jethmalani & 14.6% drop in volume. “Volumes take two more quarters to expanding retail stores, despite
Dull and dreary
settling into $200/tonne range Bavadharini KS were impacted by muted
Page Industries’ revenues fell year-on-year in Q4FY23 and the
streamline, and April has seen a that if sales don’t grow then that
Global thermal coal prices are stabilizing this year in a harsha.j@htlive.com demand and ARS implementa- weak start year-on-year, so is bothersome and could keep
Ebitda margin dropped to a multi-quarter low.
range near $200 a tonne that is less than half of 2022’s tion,” said the company’s man- FY24 performance could be stock under pressure,” he said.
record highs, analysts and industry officials say, with ris- agement. Revenue (in  crore) Ebitda margin (in %) (right-hand scale) lower than expected. Plus, mar- But Page’s valuations are

P
ing supplies providing respite to consumers roiled by last age Industries Ltd’s shares Further, high-cost inventory 1,500 30 ket conditions are muted. We steep. The stock trades at 49x
year’s volatility. Analysts expect the benchmark Newcas- are trading 24% below and lower absorption of costs are expecting consensus FY24 FY25 estimated earnings,
1,200 24
tle coal index to average $175-$212 a tonne this year, a 52-week highs seen in weighed on operating perform- earnings per share estimates to showed Bloomberg data. “The
steep premium to the $86 average for the 10 years prece- October. The company is facing ance. The upshot is that Page’s 900 18 be trimmed by over 10%,” said stock’s valuation is not attract-
ding Russia’s 2022 invasion of Ukraine, but down more two problems. One, demand is Ebitda halved to ₹134 crore and 600 12 Akhil Parekh, senior vice presi- ive enough given the challenges
than 50% from September’s highs at $440. Last year, not picking up enough and two, margin contracted sharply by dent, Centrum Broking. such as stiff competition in the
300 6
punitive Western sanctions on Russia pushed European implementation of auto replen- 1018 basis points to 13.9%, a While the management has women’s wear segment (from
buyers to pay top dollar for fuel to fire power plants, ishment system is taking longer. multi-quarter low. 0 0 taken cost control measures to MNC and D2C brands),” said
Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23
pushing up global prices. Russia was Europe’s biggest In this backdrop, March quarter Now, weak revenue and vol- protect margins, benefits will Varun Singh, AVP at ICICI
Note: Ebitda is earnings before interest, taxes, depreciation and amortization Source: Company
supplier of coal and natural gas before the war. Coal pri- results (Q4FY23) show growth ume has led to high inventory flow gradually. It expects Ebitda Securities. Further, tailwinds
ces in the tighter range expected this year, though, will momentum slowed further. levels. With demand still sub- SATISH KUMAR/MINT
margin to recover to 18-20% from faster growth in athleisure
help utilities and other users better plan fuel purchases, In Q3, Page’s revenues grew dued, inventory could take ing decisions. Demand remai- better,” said the management. going ahead. Further, with no segment will be tepid for now.
easing pressure on economies battling high inflation. by just 3% year-on-year. But in longer to liquidate. “The offline ned weak in April as well, across Post Q4 results, analysts are price hikes to be taken in near Singh says near-term outlook is
Fuel prices typically account for more than half the total Q4, revenues have fallen by channel is seeing weak sales as product category, but premium likely to cut earnings estimates term, volume growth is crucial. bleak and ARS implementation
cost of generating electricity. REUTERS almost 13% to ₹969 crore with a consumers are postponing buy- products have done relatively of the company. “The ARS will “The company is massively is an overhang for the stock.

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

RBI may buy $18 bn HDFC Bank merger in 5 wks Traders fully pricing in another
of bonds to add cash rate hike within two Fed meets Reuters
feedback@livemint.com
had in April given selective A significant chunk of these
regulatory relief to HDFC will be in rural and semi-urban
Bank to smooth out the areas.
Bloomberg Bloomberg

T
he HDFC-HDFC Bank merger. The bank remains confident policy makers, has been over-
feedback@livemint.com Ltd merger is just 4-5 HDFC Bank’s management about growing its deposits at feedback@livemint.com taken by concerns about per-
weeks away and would told analysts that the bank 1.5-2x of industry growth sistently high inflation glo-

I T
ndia’s central bank may buy
as much as ₹1.5 trillion ($18
billion) of government
bonds to replenish banking
liquidity that’s expected to
tighten later in the year,
according to a top banker.
The Reserve Bank of India
may cut the cash reserve ratio
by half a point in the fiscal sec-
ond half and start buying
bonds in the December quar-
ter to keep banking liquidity at
current levels, B. Prasanna,
group head for global markets
sales, trading and research at
ICICI Bank Ltd, the nation’s
second-largest private lender
by market value, said in an
interview Monday.
Liquidity is likely to tighten
in the banking system as
higher spending amid state
elections due later in the year
may lead to money leaving the
system. A number of key states
like Rajasthan, Madhya Pra-
desh and Chhattisgarh have
elections due, and that will
RBI may cut CRR by half point
in fiscal second half. HT
RBI injected ₹468 billion into
banking system on May 19 via
repo auction, first such since
March.
Still, some lenders like
Kotak Mahindra Bank Ltd
have said RBI’s withdrawal of
highest value ₹2,000 notes
from circulation this month
will replenish liquidity and
lower probability of bond pur-
chases in fiscal second half.
The move is seen adding
about ₹1 trillion of banking
liquidity, according to esti-
mates. It follows RBI’s higher-
result in lower net interest
margin (NIM) for the lender
this year, brokerages said on
Thursday, a day after the man-
agement met analysts.
The bank expects NIM—a
key profitability measure—to
fall to 3.7-3.8% in 2023-24
from 4.1% a year ago due to the
merger, Nomura analysts
wrote in a report.
However, lower credit costs
and operating leverage will
largely offset the impact,
Nomura said, citing the man-
agement, which was repre-
sented by HDFC Bank CEO
Sashidhar Jagdishan.
The Reserve Bank of India
Wave of corporate spinoffs fills the void of large US listings
Bloomberg
feedback@livemint.com
expects to maintain post- going forward, while credit raders are now fully bally and tight labor-market
merger return on assets of 1.9% growth is seen close to the pricing in another quar- conditions that predominated
to 2.1% for 5-year average of ter-point interest rate earlier in year. Contagion
2023-24, as com- After the merger, 19.5%, the man- increase by Federal Reserve threat in banking system has
pared with 2.1% in deposit agement told within the next two policy ebbed, and fracas around debt
the last financial mobilization analysts. meetings and a more than one- ceiling has yet to unleash
year, as per a will continue to HDFC Bank is in-two chance that it could be haven demand that could pull
Macquarie note. expecting corpo- as soon as next month. expected rates lower.
remain a key area
Post the rate banking to The shift came as US rates The rate on swap contracts
merger, deposit of focus for compound at a rose across the board, led by The shift came as US rates linked to July gathering
mobilisation will the bank steady pace, the the front end, fuelled by rose across the board. REUTERS climbed to 5.34% on Thursday,
continue to be a management increased optimism about a over 25 basis points above cur-
key area of focus said, according to potential deal on the debt ceil- hikes this year, and that Fed rent effective fed funds rate of
for the bank. a Jefferies report. ing and economic data. would cut rates as many as 5.08%. Fed moves in multiples
At the meet, the manage- The bank is looking at this As recently as first week of three times by year-end. of 25 basis points, so that indi-
ment reiterated its plans to add space as an opportunity to lev- May, when central bank raised That view, which was based cates such a move is seen by
over 1,500 branches every erage corporate relationships rates for tenth time, market on recession risk posed by a market taking place either in
year for the next 4-5 years, as for deposits, transaction bank- had near-total confidence that spate of regional bank failures July or at Federal Open Market
per analyst reports. ing, among others, it said. there would be no additional and indications from some Committee’s meeting in June.
comes just a few weeks after Renaissance IPO ETF, track- porate separations are becom-
Kenvue Inc., the consumer ing more than 80 newly ing more popular among
health unit of Johnson & John- minted public firms and boardrooms, with a large spike

coincide with busy credit sea-
son in October when demand
picks up in the economy.
“Currency in circulation
will remain high due to a num-
ber of state elections and
national elections next year,”
he said. “Currency coming in
will go out as people take out
cash.”
Excess liquidity in the bank-
ing system has narrowed to
about ₹834 billion from this
year’s high of about ₹3 trillion
in April, according to data
compiled by Bloomberg Eco-
nomics. To ease the squeeze,
L
than-expected dividend pay-
out to government, which may
also boost cash in the system.
The current liquidity addi-
tion has brought down fund-
ing rates, creating scope for a
rally in notes maturing in five
years and less, he said. The
5-year yield may drop to 6.8%
levels, while one-year treasury
bill can fall to 6.75%, he said.
The 10-year bond doesn’t have
much scope for rally now with
interest rates expected to hav-
ing peaked, he added. It was
trading one basis point higher
at 7% on Thursday.
arge corporations are
providing much-needed
activity in lacklustre US
equity capital markets, taking
units public to unlock value
and slim down businesses.
Cummins Inc. is set to be the
latest entrant, with the carve-
out of Atmus Filtration Tech-
nologies Inc. this week slated
to raise roughly $275 million
based on the mid-point of its
proposed price range. That
would mark the ninth-biggest
initial public offering in the US
over the past year.
The prospective transaction
son, raised $4.4 billion, includ-
ing so-called green-shoe
shares, in the largest US IPO
since November 2021. That
milestone heralded the grow-
ing popularity of separations
from publicly traded compa-
nies, which overall accounted
for four of the five largest US
IPOs in past year and raised a
combined $7.8 billion, data
compiled by Bloomberg show.
“Typically, spinoff IPOs
tend to have a better track
record of profitability as well
as a greater cushion of capital,”
said Roth MKM analyst Rohit
includes some spinoffs, and a
4.3% gain in the benchmark
S&P 500. As for large recent
divestitures, Kenvue has ral-
lied 18% from its IPO price and
Intel Corp.’s self-driving tech-
nology unit Mobileye Global
Inc. has nearly doubled from
its October listing. That said,
Bloomberg US Spin-Off Index, a 16-member gauge of carveouts, not all have been a roaring suc-
is up 2.8% over the past year through Tuesday’s close. AFP cess —American International
Group Inc.’s Corebridge
Kulkarni. “In today’s risk-off Index, a 16-member gauge of Financial Inc. is down 17%
market sentiment, such offer- just carveouts, is up 2.8% over since September.
ings are better received by the past year through Tues- A research report by Gold-
investors.” day’s close. That compares man Sachs Group Inc. and
The Bloomberg US Spin-Off with a 1.7% drop in the broader Ernst & Young found that cor-
in 2022 alone. And if executed
well, “they can lead to an
excess blended return of
roughly 6% from announce-
ment to two years post-close as
compared with their respec-
tive company’s sector index,”
according to the report earlier
this month.
Expected moves from Labo-
ratory Corporation of America
Holdings, Kellogg Co. and
Danaher Corp. are lighting up
calendar this year, according
to Oppenheimer’s event-
driven equities analyst Mich-
ael Broudo.
LIVEMINT.COM
US AAA
credit rating
may be cut
by Fitch
Bloomberg
feedback@livemint.com
F
itch Ratings said it may
downgrade US credit rat-
ings to reflect the worsen-
ing political partisanship that’s
preventing a deal to solve the
nation’s debt ceiling crisis.
“The Rating Watch Negative
reflects increased political par-
tisanship that is hindering
reaching a resolution to raise or
suspend the debt limit despite
the fast-approaching X date,”
the ratings agency said in a
statement.
The traditional haven yen
spiked as traders reacted to the
news before paring gains. Trea-
sury futures saw a modest dip.
Economists project a US
default could trigger a reces-
sion, with widespread job
losses and a surge in borrowing
costs. Still, it’s not unusual for
Congress to strike budget deals
at the last minute when the
pressure becomes great
enough to force negotiators to
make painful choices.
“We believe risks have risen
that the debt limit will not be
raised or suspended before the
X-date and consequently that
the government could begin to
miss payments on some of its
obligations,” according to the
statement. Fitch said it still
expected a resolution to the
debt limit before the so-called
X-date, at which the govern-
ment runs out of cash. House
Speaker Kevin McCarthy
expressed optimism Wednes-
day that White House and GOP
negotiators would reach a deal
in time to avert a potentially
catastrophic US default. The
California Republican’s com-
ments came after a four-hour
meeting between his and Presi-
dent Joe Biden’s hand-picked
negotiators, fuelling optimism
Congress will act before June 1.
CORPORATE Friday, 26 May 2023
MuMbai 05
Rising Russian flows to Asia AI intrigues ETF
managers as both
is altering World’s oil map investment and tool
Bloomberg
feedback@livemint.com
While Russia has been successful in redirecting oil flows, it lost most of its old customer base
A
rtificial intelligence is
inculcating through-
out the almost $7 tril-
Bloomberg lion US exchange-traded fund
feedback@livemint.com industry, both as technology
for managing funds and as a
T
he global oil map is being new frontier for investment.
redrawn as the long-run “It feels fresh to me and
impact of western sanctions maybe just because there’s not
channels more barrels from as much out there,” Jillian Del-
Russia to Asia’s largest Signore, managing director Hype around AI soared since
economies, with China also taking and head of strategic growth the launch of ChatGPT. ISTOCK
crude from Iran and Venezuela. and solutions at FLX Net-
China and India took more than works, said in an interview at puters and big datasets — has
30% of their combined imports from this week’s Inside ETFs con- replaced cryptocurrencies as
the three states in April, according to ference in Hollywood, Florida. the topic of the moment for
data tracked by intelligence firm “The ETF industry is the cor- the thousands of issuers, index
Kpler. That’s up from just 12% in Feb- ner of asset management providers and advisers who
ruary 2022, the month Russia invaded where innovation goes to attended the Inside ETFs con-
Ukraine. thrive and it is where innova- ference.
Exports from traditional suppliers tion is taking place.” “I don’t need another crypto
are being squeezed. Flows to the pair The 14 US-listed equity session,” Matthew Tuttle,
from West Africa and the US have col- ETFs with “artificial intelli- chief executive officer of Tut-
lapsed by more than 40% and 35%, gence” in their fund descrip- tle Capital Management, said.
respectively. tions tracked by Bloomberg “Crypto was last year’s thing.
“Clearly Asian buyers are the win- have pulled in cash every This year everyone wants to
ners here for cheap oil costs,” said month this year, a total of $338 talk about AI.”
Wang Nengquan, a former economist million. Almost half of those Hype around AI has soared
at Sinochem Energy Co. who’s worked The need for Moscow to keep its oil moving to markets in Asia has led to increased use of a so-called dark fleet of tankers. AFP inflows went to the $1.9 billion since the launch of OpenAI
in the oil industry for more than three Global X Robot- Inc.’s ChatGPT
decades. In recent months, Asia, led by sia’s exports now go to these two,” Between the two, India has had the exports in March at the highest since ics & Artificial For some, AI last year, with
India, has become Russia’s biggest Andreas Economou, Bassam Fattouh biggest jump in appetite for Russian covid, yet revenue down by nearly half Intelligence ETF investing is investors betting
trading partner, which has essentially and Ahmed Mehdi wrote in a research crude, while China has also taken a from a year earlier. (BOTZ), the larg- utilizing the on the companies
helped Moscow to restore its oil report for The Oxford Institute For greater volume of Russian barrels and The US Treasury also said this est AI-focused technology, while that they believe
exports to normality, according to Energy Studies, referring to India and sustained purchases of Iranian and month the price cap had kept barrels ETF. will benefit.
for others, it’s
Wang. China. Venezuelan oil, which come with moving while cutting the Kremlin’s One AI-related Conference
The reshaping of flows testifies to While Russia has been successful in steep discounts. funding. fund launched in investing in attendees said
the flux in the world’s most impor- “The price cap policy is a novel the US in 2023, AI-related firms more clarity is
tant commodity market, where DIFFERENT ROUTE tool of economic statecraft,” the the Roundhill needed on what
global demand runs at about 100 Treasury, led by Yellen, said in a Generative AI & AI investing actu-
million barrels a day, with growth THE reshaping of AFTER Russia’s BETWEEN India US Treasury said this report. “This restriction has Technology ETF (ticker ally means. For some, it’s util-
led by India and China. flows testifies to the invasion, western and China, India has month the price cap worked to limit Russia’s ability to CHAT). The actively-managed izing the technology, while for
flux in the world’s nations barred flows had the biggest had kept barrels
After Russia’s invasion, western most important of its crude and jump in appetite for moving while cutting profit from its war while promot- fund will invest mostly in com- others, it’s investing in AI-re-
nations barred flows of its crude commodity market products Russian crude the Kremlin’s funding ing stability in global energy mar- panies that derive portions of lated companies.
and products from their own mar- kets.” their revenue or profit from “There is a very big differ-
kets and imposed a price-cap The need for Moscow to keep its generative AI. ence between those two
mechanism to push them elsewhere. redirecting oil flows, it has lost most of The US has long imposed sanctions oil moving to markets in Asia, as well Two more were filed, things,” Phil McInnis, chief
The complex framework, champi- its old customer base, the trio said. But on crude from the two nations. as pre-existing curbs on cargoes from according to a database investment strategist at Avan-
oned by US Treasury Secretary Janet with the fate of its exports now heavily Data from the International Energy Iran and Venezuela, has led to tracked by Bloomberg Intelli- tis Investors, said. “That’s
Yellen, was designed as a way to curb dependent on just a few countries, Agency—the Paris-based body that increased use of a so-called dark fleet gence’s Henry Jim. where you draw that line of
the Kremlin’s income, while keeping mainly China and India, that gives advises major economies—have of tankers. Most of these vessels oper- While still a relatively small what is artificial intelligence
world markets supplied. refineries there “huge market power,” showed the sanctions on Russia work- ate outside of western oversight and sector, AI—loosely defined as versus what is something that
“Within Asia, almost 90% of Rus- they said. ing as intended, with Russia’s oil are aged, raising safety concerns. problem solving using com- is more quantitative.”
06 Friday, 26 May 2023
MuMbai CORPORATE LIVEMINT.COM

Brokers
asked to run
disclaimers
on F&O risks
FROM PAGE 1
Zerodha, the country’s largest
retail broker, said his company
recently warned its active cli-
ents about the pitfalls of trad-
ing in derivatives.
“We have used every oppor-
tunity to create awareness that
Tata Motors’ Tiago, Tigor m
MOVES
sales fuelled by EVs, CNG A weekly list of C-Suiters who have moved up
the corporate ladder either within or outside
their companies.
Appointed as chief executive
Abha officer digital initiatives at Allen
Maheshwari Career Institute
The two models contributed 54% to overall sales of the electric and CNG variants Arun Appointed as head of operations
Gupta at Biocon
Alisha Sachdev happen across fuel types. We expect
Deeper in the game Appointed as head AIF business
alisha.sachdev@livemint.com current volumes to sustain and grow.” Ashish at Nippon Life India Asset
Among models in which Tata Motors Chandra said the semi-conductor
NEw DElhi Chugani management
has alternative fuel variants, the challenge has “drastically reduced”.

in the long run (three-year
period), less than 1% of those
who actively trade equity
futures and options generate
returns higher than bank fixed
deposits or 7% annually,”
Kamath said.
Deven Choksey, promoter
of KRChoksey Group, con-
firmed the Sebi diktat, adding
it would make investors “cog-
nizant” of the risks they faced
while dabbling in such instru-
ments.
While retail investors’ par-
ticipation in the capital mar-
kets segment of the country’s
largest stock exchange NSE
has fallen sharply, their deriva-
T
ata Motors Ltd garners over company has seen EV and CNG “General supply chain has improved,
half of its sales from power- units together contributing to more but the industry has found a structured Joydeep Appointed as chief marketing
train options in the alterna- than half the market share of the way to deal with it. We have found ways Mukherjee officer at Adda52.com
tive fuel segment, namely overall sales of these models. to utilize standard chips, give longer-
electric and compressed nat- Market share (in %) term schedule to suppliers and have
Other Appointed as chief executive
ural gas (CNG), in models where it pro- established strong relationships,” he Karan officer for Easybuy at Landmark
vides these options, according to data added. Tata Motors is also likely to sus- Mehta
34 EV penetration Group
reviewed by Mint. This is primarily Tiago & Tigor tain volumes despite new nameplate
attributed to the availability of models 46 launches on the back of a more positive
equipped with these fuel alternatives. outlook on chip supplies compared to Narayan Appointed as chief executive
EV penetration officer at 5paisa Capital
The homegrown automotive major’s 20 competition.“Only last year we had a Gangadhar
electric and CNG variants saw hatch-
back Tiago and compact sedan Tigor
contribute 54% to its overall combined
sales of the two models between Janu-
ary 2023 and April 2023.
In a recent interview with Mint, Shailesh Chandra, MD of Tata Motors’
Shailesh Chandra, managing director PV and EV segment, said the Tiago EV
of Tata Motors Passenger Vehicles Ltd has surpassed Nexon (EV version) AFP
CNG penetration
Tiago & Tigor

Other

All data Jan23-Apr23

89
11
Nexon

Source: Company
pressure of a steep 35% increase in cell
prices, which we could not pass on to
the market, as it would have led to a risk
of destroying demand creation. We had
inefficiencies in the ramp-up phase,
but we were close to Ebitda-neutral in
EVs in FY23. If you remove future
capex from our fixed costs, we are in a
Narayan
Saraf

Neeraj
Agarwal
m Appointed as chief financial
officer at Hygienic Research
Insitute

Appointed as vice-president
marketing at Kotak Mahindra
Bank

tives exposure continues to
remain high. In the cash mar-
ket, where shares are bought
and sold, the share of retail
investor trading plunged to
36.5% in FY23 from 45% in
FY21. The market share of
retail investors in derivatives
shot up with the outbreak of
the covid at the end of FY20
and moderated thereafter but
remains high compared with
MOVES
and Tata Passenger Electric Mobility SATISH KUMAR/MINT profitable shape even now. We have
Ltd, said the Tiago EV, introduced last iCNG has a patented twin-cyclinder that with the Altroz EV and given it all also been responding with price-cut
December, has surpassed Tata’s flag- technology that frees up boot space. the premium hatch features,” Chandra actions. We are trying to build a sus- Saif Appointed as chief growth officer
Khan at PayNearby
ship EV, the Nexon, and accounts for an The firm expects 33% CNG penetration said, adding: “We are seeing CNG cap- tainable business and I am confident
impressive 35% of Tiago’s total sales. for the Altroz, which will help expand ture the market, wherever diesel that this business was and will be very
Furthermore, an additional 23% of the its sales from the existing 6,000 units becomes unviable. However, we are close to where we operate in the pas- Appointed as chief business
sales are attributed to the CNG version every month, albeit with some degree not seeing high traction in CNG for senger vehicle business”, Chandra Sandeep officer-banking and alliances
of the vehicle. of cannibalization. SUVs because the price sensitiv- added. Indurkar at BharatPe
Tata Motors will launch a “CNG models in the coun- ity in that segment is lesser Ebitda is short for earn-
new CNG and electric vari- try are primarily personal- and customers prefer more ings before interest, taxes, Shalini Appointed as group head of brand &
ant of two of its existing
nameplates this year, in 35%
Tiago EV’s market
focused, contrary to the
mainstream logic that
performance-oriented
vehicles.” 33%
CNG penetration
depreciation and amorti-
zation.
Singh communication at RPG Group

foreign portfolio investors and
corporates, NSE data shows.
As a percentage of notional
turnover, the retail market
share jumped to 29.2% in FY21
from 23% in FY16. In FY23, it
stood at 27.7%, down 30 bps
from FY22. It is significant that
this class of investors is the
second-largest after proprie-
tary traders (53.1% in FY23
from 48.8% in FY22) in the
derivatives segment.
its bid to grow ahead of they are primarily fleet- While the passenger “The mix can be
its peers, even as rivals share in overall oriented. 80% of CNG PV vehicle market is TaMo expects for slightly adverse on the Sidhartha Appointed as chief operating
line up multiple launches sales of the model sales are in the personal expected to grow 6-8% the Altroz electric vehicle side, but Shishoo officer at SG Analytics
this fiscal, Chandra said, segment. We are seeing this financial year, Tata we will see how we will be
adding that the company this segment grow on the Motors expects CNG sales offsetting that through our Venkatesan Appointed as chief architect of
expects to keep improving vol- back of the increasing number of that remained range-bound at other actions. Entry into CNG will Vaidhyanathan technology at Slice
umes and profitability in passenger CNG models, and growing infrastruc- 30,000-35,000 units per month for a also be a profitable segment. In general,
vehicles as well as its passenger EV ture. But the models in the market have while, will grow at least 10% with the we are moving towards higher-margin Appointed as senior
business from next year, as it introdu- not been addressing the needs of the addition of new models, and the expan- products like the Curvv and Sierra. All Vishal vice-president–projects
ces high-margin SUVs such as the segment. There would have been an sion of the CNG infrastructure across the actions we are going to take on cost Sharma at Chalet Hotels
Curvv and Sierra, along with EV offer- additional 10,000-15,000 customers India.“In the personal segment, people reduction, we should be able to bring
ings. every month for CNG if the boot space take a long-term view of the CNG prices down our breakeven points, too,” Source: Accord India, executive search worldwide
Its latest CNG model, the Altroz was not compromised. We have solved and know the fluctuations in fuel prices Chandra said.

UBS gains EU I-T dept to examine RBI note presses work 24X7
nod to acquire
Credit Suisse large ₹2K deposits Minting money FROM PAGE 1
The presses are working round the clock because more customers are
the official added. coming forward to exchange ₹2,000 notes instead of depositing.
Reuters FROM PAGE 1 the scheme to update tax “I had come to exchange Total value of banknotes of two highest denominations in circulation, annual (in ₹ trillion)
feedback@livemint.com returns introduced in 2022 money on behalf of my seth 30

BrUssEls late whether large cash depos- enable assessees to update their (employer). Yesterday, I went ₹500 (old) ₹1000 ₹500 (new) ₹2000
its in the wake of the with- returns for previous years and to deposit money in my 20

U
BS on Thursday won drawal of ₹2,000 notes add back any erroneously account,” said Sumit, who
unconditional EU anti- reported by banks will attract omitted income or to come works in the accounting
trust approval to scrutiny. “Let people exercise clean on under-reporting of department of a small textile 10

acquire Credit Suisse as part of their right to deposit or earnings. business.

Amazon laid off more than 27,000 employees globally since last a government-orchestrated exchange the cash. It is not the As a measure of caution, On Friday, RBI announced 0
year amid high interest rates and a growth slowdown MINT rescue of its Swiss rival. right thing to spook the public,” some banks are insisting that the withdrawal of ₹2,000 Mar 2016 Mar 2022
Old notes of ₹500 and ₹1,000 got discontinued after demonetization in November 2016
The European Commission the person said. people who make repeated notes and allowed people to

Campus hires face

Data as of the end of each fiscal year. Full data not available for FY23. Source: RBI
said the deal would not raise An email sent to attempts to exchange or deposit them in
SARVESH KUMAR SHARMA/MINT
competition concerns in the spokespeople Reserve Bank of exchange ₹2,000 their accounts before 30 Sep-
Europe, confirming a Reuters for finance minis- India governor notes at the coun- tember. PTI report, the RBI currency ₹500 notes to touch ₹22.7 tril-

six-month delay story earlier this month.

“The combined entity will
continue facing significant
competitive pressure from a
at Amazon India wide range of competitors in all
of those markets, including
several major global banks as
try and the Cen- Shatikanta Das is ter furnish their
tral Board of expected to meet IDs, bankers said.
Direct Taxes Reserve Bank of
senior officials of India governor
“Presses have the required
printing capacity. A 40%
increase in higher denomina-
press in Nasik ran out of ink by
April 2018, given the frenetic
pace of printing. However, this
lion as on 30 March 2022.
Currently, there are four
currency presses in the coun-
(CBDT) on tion capacity over the next five time, the value of the currency try. The Bharatiya Reserve
Wednesday seek-

Devina Sengupta together retrenched more
devina.sengupta@livemint.com than 70,000 job cuts since
MUMBAi January amid fears a global
recession will affect growth.
well as specialist providers and
strong local players,” the EU
competition watchdog said in a
statement.
the story
private sector
ing comments for banks next week
Shatikanta Das is
expected to meet
senior officials of
months will meet the target of
replacing all the ₹2,000 notes.
Currently, all the presses have
being replaced is far less —₹3.6
trillion against ₹15.4 trillion in
2016.
Bank Note Mudran Pvt. Ltd, a
unit of RBI, owns one press
each in Mysuru (Karnataka)
remained unan- private sector stopped printing other notes According to RBI data, the and Salboni (West Bengal).
swered. banks next week on govern- and are focussed on printing combined value of ₹2,000 The Security Printing and
The tax department has been ance issues where the progress only ₹500 notes,” one of the notes peaked at ₹6.73 trillion Minting Corp. of India Ltd
emphasizing voluntary tax of ₹2,000 note exchanges and two people said. in March 2018. Nearly ₹3.11 own two presses in Dewas

A
mazon India has Amazon is one of the top UBS agreed to buy its com- compliance, encouraging tax- deposits would also be dis- After ₹500 and ₹1,000 trillion of it was gradually (Madhya Pradesh) and Nashik
delayed the joining recruiters from many Indian petitor for 3 billion Swiss francs payers to disclose any transac- cussed, and problems faced in notes were demonetized in phased out by RBI over five (Maharashtra).
dates of its campus Institutes of Technology (IITs) in stock and to assume up to 5 tion that may not have been the process would be 2016, the RBI ramped up years by not putting these Typically, these presses
recruits by six months amid and National Institutes of billion francs in losses in reported by updating their tax addressed, a banker said on the presses to print new ₹200, notes back into circulation. work in two shifts to print cur-
rising cost pressures and Technology (NITs). Placement March, in a merger engineered returns. The e-verification condition of anonymity. ₹500 and ₹2,000 notes to During this time, RBI grad- rency notes.
recession in some Western teams at IITs said they are ana- by Swiss authorities. scheme launched in 2021 and gireesh.p@livemint.com replace them. According to a ually increased the printing of
markets. lyzing the impact of Amazon’s
While the company prom- decision on students. Place-
ised to address the “financial ments for IITs typically start in
impact” on students, India’s December.
leading engineering colleges “Students have come and
are concerned about the told us that while they were
Music labels in a pickle with rising costs, shrinking soundtracks
delays by one of their top told that their joining date was
recruiters. June, now it has been post- Lata Jha and the fact that the number of to remain relevant, Neeraj Kal- just not sustainable for music
“In light of the poned. No date lata.j@htlive.com songs per film has reduced sig- yan, president of T-Series, labels. Music rights are usually
challenging eco- India’s leading was given to NEw DElhi nificantly. Meanwhile, south- pointed out. “It’s a known fact the first rights to be sold by a
nomic condi- engineering them,” said the ern producers are also asking that film music still controls the film producer, which gives first

M
tions, we’re colleges are placement head usic labels such as for higher rates based on the majority mind share in India. fund in-flow into a film project,
delaying the start concerned about at one of the T-Series, Sony Music increasing pan-India popular- However, not every top-rated and if music labels continue to
dates for some of
the delays by one NITs. and Saregama, among ity of their films. film can guarantee a musical incur losses on film music, it
our college hires According to others, have seen film sound- “Costs have skyrocketed in hit, and thus the ever-increas- will definitely impact the entire
by up to six of their top people aware, track acquisition costs spike by the past couple of years, but the ing costs of film music are a creative and filmmaking eco-
months. We’re recruiters engineering col- five to eight times over the past real challenge is that, at least in huge disadvantage to the strug- system in the long run,” Kalyan
offering assist- leges will now year and a half. Hindi, we’re paying for music gling recorded music industry, said. The cost of production of
ance to help reach out to Ama- Filmmakers who feel audio that is a complete washout. which on one end, is being films has risen in the past cou-
address any financial impact. zon for more clarity on their streaming is bringing signifi- Plus, the music rights are sold hammered by online piracy ple of years, and producers
Amazon remains committed plans. Campus recruitment cant returns for music compa- way early, right when the and, on the other hand, finding want to secure projects by sell-
to university recruiting and may get tougher this year. nies are demanding massively movie goes on floors, and only it hard to make ends meet due ing rights such as satellite, digi-
developing the next genera- India’s IT companies are likely higher rates, with most deals the main cast and crew are in Shahrukh Khan’s latest blockbuster Pathaan released this increasing cost of content tal and music, said producer
tion of leaders and builders,” to slash campus hirings by at being struck in the early stages place, so we’re taking a huge January only had two tracks AFP acquisition,” Kalyan said. This Vinod Bhanushali, former
Amazon said in response to an least 40% amid robust bench of the movie’s life cycle when risk in terms of quality,” said a unabated rise in the cost of president of media, marketing,
emailed query. strength, reduced client the music hasn’t even been put senior executive at a music paying more for fewer songs their films gain pan-India popu- commercial film music may publishing (TV) and music
Amazon laid off more than orders and poor visibility of together. While these deals are label declining to be named. and more compact soundtracks larity, competition is rising lead to a situation where labels acquisitions, T-Series. “But
27,000 employees globally when the recessionary phase signed based on the reputation The person added that the as Hindi films have given up the with national labels also trying may be less willing to take risks labels are no longer dependent
since last year amid high inter- will pass. IT firms are expected of the production banner and music rights of a big tentpole template of full-fledged musi- to acquire southern music,” the on film music and may be more only on film music with the rise
est rates and a growth slow- to hire about 155,000 students music composer besides the Bollywood film today are suffi- cals with six or more songs. person added. inclined to invest in main- in the independent and pop
down. This has also impacted from the 2024 batch of engi- lead cast, labels say they are at a cient to fund the entire produc- Even a blockbuster like The music industry is highly stream non-film singles that scene. Everyone is brainstorm-
the likes of Meta, Google, Mic- neering campuses compared serious disadvantage given the tion cost of a small-budget, Pathaan released this January competitive, and music labels will lower risks and may have a ing on where their money
rosoft, and Accenture. The big to 230,000 from the batch of quality of Hindi film music non-star vehicle. But the more only had two tracks. “The south often have no choice but to higher probability of profitabil- should go,” Bhanushali pointed
tech and internet giants have 2023. lately that is gaining no traction serious issue is that labels are is following the same trend, as secure the rights to film music ity. “The current high costs are out.
LIVEMINT.COM DEALS, TECH & STARTUPS Friday, 26 May 2023
MuMbai 07

m MINT SHORTS
Capri Global Holdings acquires 51%
‘Healthcare investors are Lendingkart
reports net
stake in CarLelo for $18 million
Capri Global Holdings Pvt. Ltd (CGHL), the holding company
of Capri Global Capital Ltd, on Thursday said it has acquired a
51% stake in car selling platform CarLelo for ₹150 crore ($18 mil-
writing larger cheques now’ profit after
two years
lion). With the acquisition, Capri Global Capital, which runs Beena Parmar
non-bank lender Capri Loans, will look to expand its presence beena.parmar@livemint.com Aman Rawat
in the car loan segment. It will also aim to improve its services mumBAi aman.rawat@livemint.com
and technology to acquire new customers. In the financial year new DeLhi

T
ended March, Capri Loans had disbursed 60,000 car loans. It ata Capital Healthcare Fund,

is now looking to sell around 7,000 to 8,000 cars every month, a growth-oriented private
aiming to clock around 100,000 car loans. AMAN RAWAT equity fund focused on the
lifesciences and healthcare
sector in India, aims to exit its
Square Peg leads $10 million first fund and fully deploy the second
fund of ₹955 crore (about $115 million)
round in fintech firm XFlow this year.
ISTOCK
Sponsored by Tata Capital Ltd, Fund
II was raised in March 2022 and it has
deployed half of its corpus across five
investments with a pipeline of three
more deals over the next 4-5 months,
said Visalakshi Chandramouli, manag-
ing partner, Tata Capital Healthcare
Fund, in an interview.
Chandramouli, along with Vamesh
Chovatia, partner, elaborated on further
expected downrounds, changing
themes in Fund II and focus on environ-
mental, social, and governance (ESG)
policies’ impact on its portfolio compa-
nies. Edited excerpts:
You raised Fund II in March last
Fintech startup XFlow has raised $10.2 million (₹84.3 year. How is the deployment com-
crore) in a pre-Series A funding round led by Square Peg. ing along?
The round also saw participation from Moore Strategic Chandramouli: We have made five
Ventures and existing investors Lightspeed and General bets so far and have 4-6 more to go. It
Catalyst. The Bengaluru-based startup will use the funds will be approximately 35% in pharma-
for product development and market expansion. ceutical products and services, 45% in
Visalakshi Chandramouli (L), managing partner and Vamesh Chovatia (R), partner at Tata Capital Healthcare Fund.
single specialty healthcare delivery,
integrated regional diagnostic plays,
and healthtech companies addressing a
critical unmet need.
In terms of investment themes,
what is your outlook?
Chandramouli: Two big themes
that we are constantly looking at in port-
L
endingkart Group, which
comprises small and
micro enterprise (SME)
lender Lendingkart Finance
Ltd and fintech platform Lend-
ingkart Technologies Pvt. Ltd,
swung to a net profit in FY23
after two consecutive years of
losses driven by increased reve-
nue amid the abatement of the
pandemic.
The fintech firm clocked a
net profit of ₹120 crore in FY23
compared to a net loss of about
₹203 crore in the year before.
Revenue rose 34% to ₹828
crore from ₹616 crore. Loan
disbursals grew by 44% during
the year to about ₹4000 crore.
Lendingkart had posted prof-
its for two
and may be coming back with consoli- The larger ticket size deals has gone up straight
dation in the space. In Fund II, it will be significantly. We are looking at around years till
not just single specialities, but also $15-30 million transactions along with F Y 2 0 ,
which is asset-light with better return on LPs co-investing. before plunging to a net loss of
capital and better profitability. Pathlabs Have you taken any risk mitigation ₹28.4 crore in FY21. Losses in
is yet to test its true valuation. steps for your portfolio firms amid FY22 were due to conservative
Another space we have not seen mod- rising focus on corporate govern- provisioning in light of the pan-
eration is domestic general all-purpose ance? demic.

Founded in 2021 by Anand Balaji and Ashwin Bhatnagar, the diagnostic and healthcare services,
XFlow is a fintech startup which helps simplify cross-bor- and balance 20% in healthtech and
der payments for businesses of all sizes - from freelancers allied healthcare. We want a fair bit of
to small and medium enterprises (SME), and large plat- diversification and not too much con-
form enterprises. The company counts Indian businesses centration. We have time till September
such as Inkle, iCliniq, and WeWork India as part of its cli- 2024 to deploy the second
ent portfolio. K AMOGHAVARSHA fund and given the robust
pipeline, we believe we can
possibly complete our deploy-
Yubi buys FinFort Infotech in 3rd ment ahead of that.
Could you elaborate on the invest-
acquisition in nearly a year ment sizes and focus areas?
Fintech unicorn Yubi on Thursday said it has bought a 100% Chandramouli: We invest between
stake in digital credit analytics firm FinFort Infotech LLP, Rs 60-125 crore standalone as a fund and
marking its third acquisition in about a year. Yubi didn’t dis- between Rs 150-200 crore along with
close financial details of the transaction. Yubi’s latest bet fol- our Limited Partners (LPs) co-investing
lows its purchase of majority stakes in Corpository at a valua- with us. We want to be a capital-efficient
tion of ₹100 crore and Spocto Solutions for ₹400 crore last year. investor and have a sharp focus in busi-
FinFort provides tech infrastructure and data analytics for pri- ness scalability. We are being selective
vate data to banks and non-bank lenders. With this acquisition, about each of the healthcare segments;
Yubi has solidified its position in the credit industry, while focus sub-segments are API intermedi-
expanding its product suite. AMAN RAWAT ates, specialty domestic formulations,
folio selection is the impact of 2Ds viz.
Disease and Demographic patterns
addressed by the companies. Post pan-
demic, we are now contending with a
triple disease burden and not just a dual
challenge of chronic and
infectious diseases but also the
pandemic infused disease bur-
den. Another big focus is on
the healthcare demographic profiles
such as childcare and senior care speci-
alities.
Insurance has picked up signifi-
cantly. Are you getting the right
price given there was some spike in
valuations a year ago?
Chovatia: We have avoided spaces in
so-called digital tech B2C areas and
some specialty healthcare spaces where
the path to profitability is not visible or
valuations are out of our range. Hospi-
tals have seen significant moderation
‘
formulations space where assets are Chovatia: This is the biggest low With the impact of covid-19
still getting valued at hanging fruit or value waning, Lendingkart is seeing
revenue multiples. A addition that we do. It’s rising interest in its services
premium is justified Two big themes that part of our documenta- and products from the MSME
especially where the we are looking at in tion... the compliance (micro, small and medium
play is in superspe- portfolio is the impact measures needed are enterprises) sector in India, the
cialty spaces like CNS, all written down. company said in a release.
dermatology, and its of 2Ds viz. Disease and Chandramouli: In Lendingkart was founded by
ilk. We are already see- Demographic patterns Fund II, we have Harshvardhan Lunia in 2014.
ing bouts of consolida- addressed by the cos adopted ESG policies, The company provides capital
tion in this space and impact targets for access to MSMEs, and com-
this trend will continue Visalakshi Chandramouli every billion invested, petes with Aye Finance, Clix
Managing partner, Tata
to play out in the next Capital Healthcare Fund number of jobs cre- Capital, NeoGrowth, and Flexi-
decade. ated, health beneficia- Loans, among others. It is
Have investment or ries and how certain backed by investors such as
cheque sizes changed? modules, teams should operate within Fullerton Financial Holdings
Chandramouli: Over the last 10-12 the company is checked and fine-tuned Pte Ltd, Bertelsmann, Mayfield
years, less-than-$10 million ticket size and do the heavy lifting immediately India, Saama Capital, Sistema
deals have come down by nearly 50%. with the investment. Asia, and India Quotient,
Then comes the $10-30 million deals, We do a lot of technical and business among others. To date, it has
which have seen steady growth and a diligence, get involved in people strat- raised ₹1,050 crore in equity
sweet spot for a mid-market fund like us. egy and key hiring. capital.

Private equity exit deals drop 29% in FY23

Malvika Maloo sales, which remained signifi-
Downhill ride
malvika.maloo@livemint.com cant amid high dealmaking
BengALuru
Private equity exit volumes and value dropped in FY23. activity in FY22, plunged to
Volume Value (in $ bn) (right-hand scale) the lowest in at least the last

P
rivate equity exit trans-
actions plummeted in
the last financial year as
recessionary economic condi-
tions globally and volatile
stock markets crimped inves-
tors’ ability to monetize their
bets.
PE exit volume fell 29% to
151 deals in the year ended
March 2023 from 214 in the
previous year, according to
the India Invests report by
360 ONE (formerly known as
IIFL Wealth & Asset Manage-
ment) based on data from
VCCEdge. It was the lowest
since FY21 when 171 deals
were struck.
Deal volume hit a five-year
peak of 258 in FY19 before fall-
ing to 190 in FY20 and subse-
quently making a sharp
rebound in FY22, the report
said, as stock markets recov-
ered following the pandemic-
driven crash and private mar-
ket dealmaking boomed, too.
The value of transactions
also remained weak, falling by
300
240
180
120
60
0 0
FY19 FY20
55% to $8.85 billion in FY23
from about $19.6 billion in
FY22 as companies battled a
slowdown fuelled by a broader
liquidity crunch.
During the year, mergers
and acquisitions
continued to remain
the most favoured
exit route as poor
stock-market performance of
companies after public market
debuts damped investor confi-
dence.
As many as 80 M&A deals
were reported in FY23, fol-
20 five financial years.
As new-age listed compa-
16 nies including Paytm, Zomato
and Nykaa weathered the
12 storm on the stock exchanges,
investors stayed away from the
8 public market, which saw a
44% drop as an exit route. This
4 is further evident from the
data on the value of these
FY21 FY22 FY23 deals.
Source: 360 ONE and VCCEdge report
The value of M&As fell 43%
to $1.8 billion in FY23, while
SATISH KUMAR/MINT
equity capital market transac-
lowed by 29 open-market tions posted a 73% decline in
transactions, according to the deal value on a year-on-year
report. basis to $1.2 billion. The value
However, on a year-on-year of secondary sales dropped by
basis, the number of M&A deals 71%, according to the report.
dropped by 27% from the pre- The value of open market
vious financial year. exit deals was least impacted,
The key deals dropping 24% to $3.7 billion.
comprised global Of them, key deals included
infrastructure inves- PE firm Bain Capital’s sale of
tor Actis’ sale of Solenergi stake in private lender Axis
Power, the flagship company Bank via an open market
for its Sprng Energy platforms, transaction, and Blackstone’s
to Shell Overseas Investments stake sale in Sona BLW Preci-
for $1.55 billion. sion Forging towards the end
Exits through secondary of the year.

Sam Altman’s crypto startup raises $115 mn

Bloomberg people really made jokes about
feedback@livemint.com us, like we read too many sci-fi
books, and that’s now

A
crypto startup
co-founded by OpenAI
chief executive officer
Sam Altman has raised new
funding to further its mission of
providing a digital ID for every-
one on the planet.
Tools for Humanity, the
company behind the crypto-
currency project Worldcoin,
said Thursday that it had raised
$115 million from investors. The
startup aims to create separate
IDs for every living person in
part by scanning their eyes.
The scanning device is a small
orb that reads a user’s irises,
creating unique digital identi-
ties based on blockchain.
Blockchain Capital led the
Series C funding round, which
also included Andreessen
OpenAI’s CEO Sam Altman co-founded cryptocurrency project
Worldcoin.
Horowitz’s crypto team, as well
as Bain Capital Crypto and Dis-
tributed Global.
Tools for Humanity
co-founder and CEO Alex Bla-
nia declined to provide its valu-
ation in an interview. He said
that the new funding will be
used for product expansion and
BLOOMBERG
hiring new employees to grow
the startup’s 150-person team.
The Financial Times previ-
ously reported some details of
the deal.
The funding round signals
the seriousness of the venture,
Blania said. “When we started
talking about it three years ago,
changed,” he said.
The company’s identity
technology will be important in
a world where artificial intelli-
gence raises new questions of
what’s human and what’s not
on the internet, Blania said. It’s
also an example of the overlap
between the crypto and AI
industries. “The initial motiva-
tion was all around how can we
build infrastructure in a world
in which AI is becoming
increasingly powerful,” he said.
Where funding for most
crypto startups has dried up,
Tools for Humanity is a notable
exception. Blania stressed that
blockchain technology ensures
that the Worldcoin project,
which has a Worldcoin token,
is decentralized in nature.
08 Friday, 26 May 2023
MuMbai
Gupshup
brings UPI
to feature
phones
Gulveen Aulakh
gulveen.aulakh@livemint.com
C
onversational messag-
ing platform Gupshup,
has launched a native
app, GSPay, to enable feature
phone users make payments
through the unified payments
interface (UPI) platform. The
app developed jointly with the
National Payments Corp. of
India (NPCI), uses SMS tech-
nology, eliminating the need
for data or internet connectiv-
ity, as well as interactive voice
response, or IVR-based pay-
ment systems.
Gupshup seeks to facilitate
secure and seamless transac-
tions for feature phone users by
leveraging the power of UPI 123
Pay, the instant payment sys-
tem which was launched by the
Reserve Bank of India (RBI) and
the NPCI last year.
The GSPay app will be made
accessible on the latest models
of Nokia 105 and Nokia 106 4G
feature phones, through a stra-
tegic partnership with HMD
Global. These phones will offer
QR code scanning capabilities,
enabling users to make pay-
ments effortlessly.
“This innovative capability
will bring the vast numbers of
feature phone users into the
digital and payments ecosys-
tem. We’re glad to work with
NPCI, Nokia and Airtel Pay-
ments Bank to make it a real-
ity,” Beerud Sheth, chief execu-
tive officer and co-founder of
Gupshup, said.
Sheth said initially 100,000
devices will be rolled out by
HMD to facilitate the adoption
of the UPI payments platform
by feature phone customers.
“We expect it to then get to
millions, but will of course take
time as payments on feature
phone is something new and
will need awareness creation.”
CORPORATE BUZZ
REC ORGANISES ‘BIJLI UTSAV’ IN ODISHA AS A PART OF AZADI REC RECORDS HIGEST EVER
KA AMRIT MAHOTSAV
As a part of ‘Azadi Ka Amrit Mahot-
sav’, REC Ltd organised ‘Bijli Utsav’
in Khuntuni village, Athagarh block
of Cuttack District, Odisha on May
20. Dignitaries such as Ranendra
Pratap Swain, Minister of Agricul-
ture & Farmers’ Empowerment and
Fisheries & ARD of Odisha, Ranjan
Acharya, former Block Chairman
NTPC WINS PRESTIGIOUS
ATD BEST AWARD
NTPC has been bestowed with the
prestigious ATD BEST Award. This
international award was received
by DK Patel, Director (HR) at a cer-
emony held at San Diego, CA, USA.
NTPC secured an overall 13th rank.
MALABAR OBTAINS TRQ SHALBY GROUP SHARES
LICENSE FOR GOLD IMPORT ITS FINANCIAL RESULTS
Malabar Gold and Diamonds, one
of the largest gold and diamond re-
tail chains of the country, became
the first jewellery group in India to
obtain a TRQ (Tariff Rate Quota)
license from the Director General
of Foreign Trade whereby they can
import gold through India Interna-
tional Bullion Exchange (IIBX).
TRQ will help the group in im-
porting gold through the IIBX un-
der the India-UAE Comprehensive
Economic Partnership Agreement
at reduced duty rates with conveni-
ence and transparency.
Ola Electric hires Goldman,
Kotak for IPO in early 2024
The company plans to file its draft prospectus with Sebi at the beginning of the next quarter
Alisha Sachdev & Ranjani Raghavan
NEw DElhI/MuMBAI
O
la Electric, India’s top
electric two-wheeler
maker, has appointed
Goldman Sachs and
Kotak Mahindra Capital
to manage a potential initial public
offering (IPO) early next year, two peo-
ple aware of the matter said.
Other investment banks including
Axis Capital, Citi, ICICI Securities and
JP Morgan are also keen on the IPO
mandate, the people said on condition
of anonymity.
The Bengaluru-based company is
expecting a valuation of at least $10 bil-
lion, one of the people cited above said,
even though banks are still working on
a price discovery.
The planning of the public offering is
still at an early stage, the person added.
The Bengaluru-based company
plans to file its draft prospectus with
the market regulator Securities
Exchange Board of India (Sebi) at the
beginning of the next quarter, with the
aim to list its shares on the exchanges in
either January or February, the person India’s EV market is at a nascent stage, with many new and legacy OEMs seeking to raise capital for expansion.
added.
A spokesperson for Ola Electric Alpine Opportunity Fund and Edel- fundraise even earlier, the person said. according to the government’s VAHAN
declined to comment. weiss at a valuation of $5 billion in Jan-
“The IPO is still some time away as it uary 2022. It is now close to finalizing a nascent stage, with many new and leg- cheapest e-scooter offering, the Ola S1
will depend on when the IPO senti- $300 million round at a valuation of acy original equipment manufacturers Air with deliveries slated to begin in
ment will improve. It will primarily be nearly $6 billion.
a primary fund infusion as the com-
pany needs capital,” the second
person cited above said.
In parallel, Ola Electric is in the THE Bengaluru-
process of raising capital from sev- based company is
expecting a
eral funds in the Middle East. valuation of at least
“The round was oversubscribed $10 billion
and there was significant interest
from Middle Eastern sovereign
funds. The paperwork is expected to be The company, led by founder and expansion. Ola Electric, with its Ola S1 crore ($250 million) in Mahindra and
completed soon,” a third person aware CEO Bhavish Agarwal, has been look- and S1 Pro scooters, currently leads the Mahindra’s four-wheeler EV business.
of the matter said. ing to appoint IPO bankers since domestic electric two-wheeler market, M&M is raising more capital for its EV
Ola Electric last raised around $200 March, the person said. However, Ola accounting for nearly a third of all business, Mint reported in March.
million from Tekne Private Ventures, Electric was probably working on the e-scooters sold in India in April,
Mint Media Marketing Initiative
YEARLY PROFIT
The Board of Directors of REC Ltd
of Athagarh, Bijay Kumar Mohanty,
Chief Program Manager, REC Limit-
ed along with other local representa-
tives and officials of PGCIL, OPTCL
& TPCODL graced the occasion.
Beneficiaries from villages shared
their respective experiences and the
event concluded with distribution of
LED bulbs to the beneficiaries.
AIR INDIA FAST TRACKS
TIER STATUS PROGRAM
Air India, India’s leading airline and
a Star Alliance member, has given
wings to its Frequent Flyer Pro-
gramme – ‘Flying Returns’ (FR) with
a limited-time opportunity for mem-
bers to fast-track their tier status up-
grade or renewal with just 50 % of the
usual required qualifying FR points.
This accelerated path to enjoying
the benefits offered by Air India and
other members of the 25-strong Star
Alliance is in line with the airline’s
mission to establish Flying Re-
turns as amongst the most reward-
ing loyalty programmes globally.
Shalby Limited has announced its
financial results for the quarter end-
ing on March 31, 2023. Shanay
Shah, President said, “I am happy
to report that our hospital business
continued to deliver consistent per-
formance in all key operational and
financial parameters with surgery
count and In-patient count (Incl day
care) grew by 35% and 18% Y-o-Y
respectively in full year FY23. Hos-
pital revenue (Rs 7,274 mn) and
EBITDA (Rs.1615 mn) grew by 11%
and 13% Y-o-Y with robust EBITDA
margin of 22% in full year FY23.”
CORPORATE
India’s electric vehicle market is at a dashboard. It is now slated to launch its
(OEMs) seeking to raise capital for July.
BuIldInG mOmEnTum
Ola Electric is in OTHEr investment
the process of
raising capital from
banks including Axis
Capital, JP Morgan
several funds in the are also keen on the
Middle East IPO mandate
recently approved the audited stan-
dalone and consolidated financial
results for the quarter and year
ended March 31, 2023.
Owing to the improving asset
quality and resolution of stressed
assets, REC is able to record high-
est ever quarterly and yearly profit
at Rs 3,001 crores and 11,055
crores respectively. As a result, the
Earnings Per Share for year ended
March 31, 2023 stands at Rs 41.86
per share as against Rs 38.02 per
share as at March 31, 2022.
POWERGRID POSTS PAT
OF RS 15,417 CRORE
POWERGRID has announced a
PAT of Rs 4,320 crore for Q4FY23
on a consolidated basis which is
4% increase over Q4FY22. The
total income on consolidated ba-
sis for Q4FY23 rose by 13% to
Rs 12,557 crore compared to Rs
11,068 crore for Q4FY22. On con-
solidated basis, company posted
PAT of Rs 15,417 crore and to-
tal income of Rs 46,606 crore for
FY23 registering a YoY growth of
11% and 9% respectively (exclud-
ing exceptional items).
The Company has proposed a
final dividend of 47.50% (Rs 4.75
per share on a face value of Rs
10/- each).
Devusinh Chauhan, Minister of State for Com-
munications launched C-DOT Broadcast to Broad-
band Gateway (BBG) solution in the presence of
Anupriya Patel, Minister of State for Commerce
and Industry on May 20 at Varanasi.
Pradip Kumar Das, CMD, IREDA along with team
visited the office of Norfund (Norwegian Invest-
ment Fund for developing countries) in Bangkok,
Thailand and discussed investment opportunities
for RE development in India.
Ola Electric presented an elec-
tric car in August last year,
although the timeline for a poten-
THE company aims tial launch, originally slated for
to list its shares on
the exchanges in
2024, are likely to be prolonged. It
either January or has also showcased designs for an
February e-motorcycle. In February 2023,
British International Investment
(BII) said it had invested ₹1,925
alisha.sachdev@livemint.com
Reliance Home Fin NCD holders move SC
Priyanka Gawande
priyanka.gawande@livemint.com
MuMBAI
R
eliance Home Finance
Ltd’s debenture holders
have filed a contempt case
against Authum Investment and
Infrastructure Ltd, (AIIL) Reli-
ance Home, and IDBI Trustee-
ship, alleging “wilful disobedi-
ence” of the Supreme Court’s 3
March order. Mint has reviewed
a copy of the petition.
The SC had authorized AIIL
to implement its proposed res-
olution plan to turn around the
company as part of Reliance
Home’s corporate insolvency
resolution process, in accord-
ance with the Reserve Bank of
India’s prudential norms.
The crux of the dispute lies
with the disgruntled deben-
ture holders who had sought
full redemption of their non-
convertible debentures issued
by Reliance Home.
In accordance with the reso-
lution plan, approved by Jus-
Tanishq to boost sales via gold exchange
Suneera Tandon
suneera.t@htlive.com
NEw DElhI
J
ewellery retailer Tanishq,
owned by Titan Co. Ltd, is
encouraging customers to
exchange their old gold for
new collections of studded and
wedding jewellery, amid the
volatility in price of the yellow
metal. The company’s move is
aimed at attracting new cus-
tomers to drive additional sales.
It expects the exchange pro-
gramme to contribute 45% to
its overall sales in the current
fiscal year, surpassing the pre-
vious average of 40%.
“We had decided that gold
exchange is a growth engine.
And as part of that, we had tar-
geted that 40% move to 45% for
FY24, and in the next couple of
years maybe we will be at 50%.
We want to do more of this
exchange for various reasons—
it’s good for the consumer,
because there’s no point in gold
REUTERS
SC had authorized Authum to
implement resolution plan PTI
tice B.R. Gavai of the Supreme
Court, petitioners with invest-
ments of up to ₹5 lakh, were
eligible to receive 100% of the
principal investments back.
Reliance Home, however, in
complete contravention of the
undertaking before the SC, as
well as the terms of the resolu-
tion plan, repaid only 27% and,
in some cases 20%, of the prin-
cipal amount to the debenture
holders, the petition alleged.
Over 103 debenture holders
of the firm have filed the con-
Tanishq expects the exchange programme to contribute 45% to
its overall sales in the current fiscal year.
lying in the locker, we would
love people to wear rather than
accumulate. Second, it is good
for the planet, because you’re
mining less gold. It’s also good
for the country as you are
importing less. Approximately
20,000 tonnes of gold sits in
lockers in India,” said Ajoy
Chawla, chief executive, jewel-
lery sivision, Titan Co. Ltd.
LIVEMINT.COM
Vikram Bakshi helped drive the American burger chain
McDonald’s entry and business in India. MINT
Ex-McD partner
backs burger chain
Suneera Tandon “Super thrilled and ecstatic
suneera.t@htlive.com to announce that we raised
NEw DElhI funding from Vikram Bakshi,
the pioneer who brought the
F
ormer McDonald’s India burger culture to India.”
partner Vikram Bakshi The chain has three dine-in
has invested in New Del- outlets in Delhi-NCR.
hi-based gourmet burger Gourmet burgers caught
chain AKU’S—The Burger Co., the attention of several chefs
via his family office. and restaurant owners in India
“Our investment and my who have launched their own
knowledge is aimed at helping burger brands, especially post-
expand the brand pan India. covid. “I strongly believe that
This is evidenced by the recent the time is ripe to upgrade the
opening of AKU’s flagship res- burger culture in India….and
taurant at the Priya complex at no one yet has mastered fresh
Basant Lok in Vasant Vihar on handcrafted burgers like
14 May. Two AKU’S. Their
more AKU’S out- Taking to motto of “real
lets are planned Instagram last ingredients taste
to be opened very week, the burger better” connects
soon and we aim chain AKU’S with my thinking
to be available and the present
announced the
across Delhi NCR demand of the
this year,” Bakshi name of Bakshi as millennials and
said in response an investor Gen-Z. I want to
to queries regard- make the product
ing his invest- available to a
ment in the brand that started much larger audience,” he
out in Delhi in 2018. Bakshi did added. Bakshi helped drive the
not disclose the amount American burger chain McDo-
invested. nald’s entry and business in
AKU’S is owned by sister- India, since the mid-90s as its
brother duo Akriti and Ankit local partner for north and east
Malhotra. Chef Akriti is an markets. However, a bitter
alumnus of the Culinary Insti- legal battle ensued in 2013
tute of America, New York. with the burger chain ousting
Taking to social-media plat- Bakshi as its managing
form Instagram last week, the director. This led to a multi-
burger chain announced the year legal dispute between the
name of Bakshi as an investor. two.
tempt petition, represented by principal amounts, according
Edictum Law & Co. to the company.
“Authum and RHFL have The contemnors (Authum)
suppressed several material specifically said the category
facts from the Supreme Court of “individuals and HUFs who
and has misused the indulgence had invested up to ₹5 lakh”
shown by the top court. The were the intended beneficia-
apex court has been apprised of ries of the resolution plan.
the said facts and how contemn- It is based on this undertaking
ors have discrimi- that the SC exer-
nated with the The plea said the cised its extraordi-
small bondhold- court was not nary powers under
ers,” said Srijan Article 142 of the
apprised of all
Sinha, partner, Constitution, and
Edictum Law.
debenture
holders who had approved Reliance
According to Home’s resolution
the plea, the peti- invested ₹5 lakh plan.
tioners submitted or less Authum, in its
that the court was response said that
not apprised of all “as resolution
the debenture holders, falling applicant, we have paid the
under the category of individ- entire resolution amount of
uals who had invested ₹5 lakh ₹3,351 crores as per the resolu-
or less. tion plan and do not possess
The debenture holders also any authority over the distri-
claimed that the top court was bution of the amount. The
not informed that 15 April process of approving the dis-
2022 was the cut-off date for tribution of the resolution
debenture holders to be eligi- amount lies solely in the hands
ble for 100% repayment of the of the lenders and advisors”.
India, which saw the weakest
March quarter for jewellery
sales since 2020, according to a
5 May report by World Gold
Council. Q4 demand was 17%
lower compared to a year ago.
The council anticipates muted
demand outlook in Q2 FY24.
Gold prices ended lower on
Tuesday by ₹350 to ₹60,170
per 10g in the national capital
following a decline in the pre-
cious metal’s prices globally.
Chawla said the exchange
programme will draw in shop-
pers to buy jewellery for the
MINT wedding season. “May-June is
wedding season and, during
Jewellery retailers in India are weddings, exchanges are any-
trying out different strategies way a big driver. A lot of people
to spur demand amid the rise in have accumulated gold in the
gold prices to woo shoppers long run. It allows consumers
with offerings, including light- to complete purchases without
weight jewellery, lower carat- anxiety around gold price.”
age as well as exchange pro- So far, Tanishq exchanged
grammes. 100,000kg of gold; since 2011,
High and volatile gold prices around 1.8 million customers
are challenging for consumers have exchanged their old gold
across markets, especially in with Tanishq.
LIVEMINT.COM CORPORATE FRiday, 26 May 2023
MuMbai 09

DGCA asks Go First for AN EXPLOSION IN A GALAXY, FAR, FAR AWAY carbon and other heavy elements that later condense into a

flight resumption plan A M AT T E R

OF NUMBERS
planet.”
Thus the short version of what just happened in the Pinwheel
Galaxy: a massive star ran out of fuel, and bang! We have super-
nova SN2023ixf.
Though let’s be clear about that phrase “just happened”. More
DILIP D’SOUZA accurate would be to say that we’ve just observed the explosion,
for it actually happened a while ago. 21 million years ago, in fact.
Respond to this column at Remember that the Pinwheel is that many light years away,
Regulator also asked the carrier to submit details about its working capital feedback@livemint.com meaning it takes light from there that many years to reach us on
Earth. So when this star exploded and expelled carbon into space,

T
he time has come,” the Walrus said, “to talk of many things.
Anu Sharma Of shoes, and ships, and ... supernovas, why not?”
anu.sharma@livemint.com No, Lewis Carroll’s Walrus did not say that, but there’s
new delhi never a bad time to talk about supernovas. And right now is a par-
ticularly good time, because one has just ... well, how do I put this?
it also sent light shooting through space. 21 million years later,
some of that light reaches us on Earth, and we “see” the super-
nova.
Let’s also be clear: the sight of this explosion is not like one we’d
see on Earth—no huge mushroom cloud, no rocks flying every-

T
he Directorate General of Civil Exploded? But supernovas don’t explode. Stars explode to form where. I mean, it is unimaginably more powerful than anything
Aviation (DGCA) has directed supernovas. So supernovas just ... happen. we’d see on our planet. But it is also so unimaginably distant that
bankrupt budget carrier Go First And yet a word like “happen” can’t capture the cataclysmic, all we can detect, really, is a bright dot of light where there wasn’t
to submit a comprehensive plan earth-shattering nature of this event. In fact, when our Sun turns one previously. This is typical of supernova sightings. Of course
for resuming normal flight opera- supernova, the Earth will indeed be shattered. That adjective is the star that became SN2023ixf was in that spot, but the Pinwheel
tions within 30 days. accurate. So I wouldn’t hang around waiting for it to happen, a Galaxy is too far away for us to be able to discern an individual star
“DGCA has advised the airline on 24 May few billion years from now. I’d be winging it to some other habita- there. Until it turned supernova. This is how Itagaki found
2023 to submit within a period of 30 days a ble planet well in advance. SN2023ixf.
comprehensive restructuring plan for a sus- But the time has also come to be serious. You’ve heard the word Think for a moment of what’s implied here. We never saw the
tainable revival of operations,” the civil avia- “supernova”. You may have heard of the supernova that a Japa- star itself because it is so far away. But Itagaki caught sight of it in
tion ministry said on Thursday. nese amateur astronomer, Koichi Itagaki, detected only a week its death throes, when it turned into a supernova. He found it with
The airline has been asked to furnish, ago. It was subsequently also seen on images taken a couple of a telescope, of course, but still—it is
among others, status of availability of opera- days earlier. Late on 19 May, a team of astronomers used a tele- Stars contain now visible. That means astronomers
tional aircraft fleet, required post holders, scope in Spain to confirm Itagaki’s sighting. They classified it as many elements, are able to calculate its “apparent mag-
pilots and other personnel, and mainte- a “Type II” supernova—one formed by the violent explosion of nitude”, a measure of how bright it
nance arrangements, the ministry said. a star that’s between 10 and 50 times larger than our Sun. It has among them appears to us.
The civil aviation regulator has also asked a name: SN 2023ixf. carbon, which A few lines to explain the idea of
the Wadia Group-backed carrier to submit Any supernova is exciting news. But this one has caught the is fundamental magnitude: On this scale, the lower the
details about its working capital, and its Responding to a showcause notice dated 8 May by DGCA, Go First on Tuesday indicated fancy of the world’s astronomers for a few reasons. to life number, the brighter the object is in
arrangements with aircraft lessors and other its intent to resume flights but did not provide a definite timeline. PTI First, it is relatively easily seen through even small ama- our night sky. The brightest star we
vendors for sustainable flight operations. teur telescopes. It is also pretty easy to locate in the night can see, Sirius or the Dog Star, has a
“The revival plan once submitted by Go ing approval from the DGCA. Meanwhile, the airline continues to be sky—lying very close to Ursa Major or the Great Bear, the magnitude of -1.33; Polaris, the North Star, is at 2.0; the planet
First shall be reviewed by DGCA for further “The revival plan once submitted by Go involved in another legal case against its air- familiar constellation that’s like a giant question mark. In Venus, at its brightest, reaches -4.6; and the faintest stars we can
appropriate action in the matter,” the minis- First shall be reviewed by DGCA for further craft lessors. Four aircraft lessors had fact, if I was not in Bombay as I write this, and instead some- see with our naked eye have a magnitude of 7.2. To put all this in
try added. appropriate action in the matter,” the minis- approached the National Company Law where with far darker skies, I think I would be able to see perspective, one unit of magnitude means a factor of brightness
Responding to a showcause notice dated try added. Appellate Tribunal (NCLAT) challenging SN2023ixf through my telescope, at least as a small dot in the of about 2.5. So Polaris, 3.33 magnitudes less than Sirius, is 3.33
8 May by DGCA, Go First on Tuesday indi- The validity of an air operator certifi- the NCLT order dated 10 May which admit- northern sky. x 2.5 = 8.3 times fainter than Sirius. Similarly, Venus is over 8
cated its intent to resume flights but cate or flying permit to an airline is ted Go First’s insolvency plea thus triggering Second, it is in one of the arms of the Pinwheel Galaxy, known times brighter than Sirius.
shied away from providing a defi- conditional to an airline com- immediate moratorium. The moratorium as M101. This is a spiral galaxy that’s facing us, so we can see the So on this scale, SN2023ixf has a magnitude of 10.8. Maybe that
nite timeline. pany operating flights with a froze the airline’s assets and the aircraft in its entire spiral through a telescope, so the Pinwheel is an always doesn’t impress you much. But maybe this will: that’s about the
“Go First has requested that
they may be allowed to use 30 days
Time Go First has
minimum of five aircraft in fleet while the lessors have been seeking
its fleet. While Go First still recovery of their aircraft.
photogenic, always gorgeous sight.
Third, the Pinwheel is only about 21 million light years away,
magnitude of Messier 102, which is about twice as far from us as
SN2023ixf. But get this: Messier 102 is a galaxy, containing about
the moratorium period to has the requisite number of In its latest communication with the which means SN2023ixf is the closest supernova we’ve detected 100 billion stars. So this one obscure faraway star turned into a
prepare a comprehensive to submit plan to aircraft in its fleet, the Mum- employees, Go First informed them that the for five years. supernova that’s as bright as an entire galaxy.
restructuring plan for restart- resume flight ops bai-based airline suspended Indian government is supporting the airline So what are supernovas, and why should we care about them? Indeed, think about that for a moment.
ing operations,” the ministry operations from 3 May after in resolving the Pratt & Whitney engine In a very real sense, I’m writing this and you’re reading it because In fact, the last known supernova in our own Milky Way Gal-
said. The plan for resumption of voluntarily filing for insolvency issues. The airline also assured the staff that of some long-ago supernova. Stars contain various elements, axy, SN1604 in 1604, was, for several months, brighter than all the
flights is to be presented to the DGCA in the National Company Law Tri- April salaries will be credited before flight among them carbon, which is fundamental to life. But as the great stars in the sky. At an estimated magnitude of -2.25, it was over
for requisite regulatory approvals, it added. bunal on 2 May. operations resume. Stephen Hawking once wrote: twice as bright as Sirius.
Go First was given 15 days to respond in In the NCLT petition, the airline has “As part of the readiness programme, you “... that carbon is still a long way from forming ordered aggre- If SN2023ixf was in the Milky Way rather than in the Pinwheel,
the 8 May notice to explain the reasons blamed engine manufacturer Pratt & Whit- have been planned for a four-hour refresher gates of chemical compounds of the type that can enjoy a glass of it would likely be just as spectacular a sight as SN1604 must have
behind its inability to continue operations. ney for unserviceable engines, resulting in on monsoon operations, performance etc. Bordeaux ... or ask questions about the universe. For beings such been, 400 years ago. If it was in our solar system, though ... let’s
The fate of its flying permit also depends on 30-50% grounded fleet since 2020, causing DGCA will be conducting an audit to check as humans to exist, the carbon must be moved from inside the star just say, you wouldn’t be reading this.
the airline submitting a detailed plan for losses to the tune of ₹10,800 crore in reve- our preparedness in the coming days,” the to friendlier neighbourhoods. That is accomplished when the Once a computer scientist, Dilip D’Souza now lives in Mumbai
resuming flights to the regulator and receiv- nue loss and additional expenses. airline told the employees. star, at the end of its life cycle, explodes as a supernova, expelling and writes for his dinners. His Twitter handle is @DeathEndsFun.

ISSUE OUT
TOMORROW

TRAVEL
FOR TEA
WITH HOME-STAYS, TASTINGS AND
WALKS, TEA GARDENS ARE TRYING
TO SHOWCASE THE VARIETY OF
TEA IN INDIA, BUT TOURISTS ARE
YET TO TRAVEL FOR ‘CHAI’

BRIHANMUMBAI MUNICIPAL CORPORATION

TREE AUTHORITY
-PUBLIC NOTICE-
In accordance with the provision under section 8 (3) (C) of the

HAVE FUN
WITH FACTS ON SUNDAYS
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A
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Let’s together and make Mumbai Malaria free.
10 Friday, 26 May 2023
MuMbai NEWS WRAP LIVEMINT.COM

TWEETS & QUOTES

Droupadi Murmu Rishi Sunak Lola Castro
Jyotiraditya Scindia President @RishiSunak Regional director, Latin America
Union civil aviation minister Come forward, take the Prime minister, UK & Caribbean, WFP
This (new airport) will not only benefits of govt schemes Done safely and It is important to keep the world
open the doors for develop- which are run for your wel- securely, AI has the informed and mobilize action to
ment for Kanpur but also in fare. Tribal women of Jhark- potential to be address the multiple and inter-
terms of facilities, it will be a hand are ahead of those in transformational twined crises that are driving
16-time quantum jump from other states when it comes and grow the hunger in Latin America and the
the current facilities to women empowerment economy Caribbean

Andhra infra plans WHEN A STORM STRIKES NCLAT set to hear

to get ADB push Zee Ent’s plea today

T T
he Centre and the Asian Development he National Company Law Appellate
Bank signed a $141.12 million loan Tribunal (NCLAT) has deferred the
agreement aimed at supporting the hearing to Friday on Zee Entertainment’s
development of high-quality internal petition against the NCLT order, directing
infrastructure in three industrial clusters in bourses NSE and BSE to reconsider their
Andhra Pradesh. The loan will be utilized to approval for its merger with Culver Max
enhance road networks, water supply systems, Entertainment. A two-member NCLAT bench
and electricity distribution networks, fostering directed the counsel appearing for Zee
industrialization and job creation in the targeted Entertainment Enterprise Ltd to remove defects
areas. “This financing is the second tranche of in the petition and directed to list the matter for
the $500 million multi-tranche financing the next day for hearing. The appellate tribunal
facility (MFF) for the program approved by ADB was hearing the appeal filed by ZEEL against the
in 2016 to build infrastructure in three industrial order passed by the Mumbai bench of the
clusters in the Visakhapatnam and National Company Law Tribunal (NCLT) on 11
Srikalahasthi-Chittoor nodes in the state,” the May. The NCLT had directed NSE and BSE to
ministry of finance said. By adopting a multi- reconsider their prior approvals for the merger
sectoral approach, the ADB financing aims to of ZEEL and Culver Max Entertainment (earlier
boost manufacturing, improve competitiveness, known as Sony Pictures Networks India). It had
and increase the manufacturing sector’s also asked the bourses to reassess the non-
contribution to Andhra Pradesh’s gross compete fee under the clause of the merger. PTI
domestic product. SAURAV ANAND

People brave a dust storm in New Delhi’s Kartavya Path on Thursday evening. A thunderstorm followed, bringing down the maximum temperature in
the Capital. The India Meteorological Department has forecast intermittent rains in northwest India over the next two to three days. PTI

Vedanta-Foxconn Semiconductors Ltd appointed

EU climate chief says greater Narayan Gangadhar has over two decades of
experience, mostly with global tech companies.
Mike Young as senior vice president

Young to lead VFSL responsibility on rich nations Gangadhar named

CEO of 5paisa.com
manufacturing ops
D
iscount brokerage firm 5paisa Capital

V
edanta-Foxconn Semiconductors Ltd
(VFSL) on Thursday, announced that it
has appointed Mike Young as senior vice
president of the Project Management Office and
Manufacturing Operations. The joint venture
between Foxconn and Vedanta Group is
preparing to establish its first semiconductor
said it has appointed former Google
Timmermans cautions against protectionist measures in tackling climate change executive Narayan Gangadhar as CEO
with an immediate effect. Gangadhar has over
two decades of experience, mostly with global
Ravi Dutta Mishra the European Union (EU) such as Carbon Border change. “It’s a market economy based model. I am technology companies like Google and Uber.
ravi.dutt@livemint.com Adjustment Mechanism is not fair to the develop- always amazed at those who say that the inventor “Gangadhar’s engineering skills and Silicon
ing world and seeks to penalize even as developed of the market economy has not adopted that Valley experience with tech giants will

fabrication facility in India. “Mike Young brings
with him 34 years of extensive experience in
front-end semiconductor manufacturing across
multiple geographies with significant
contribution to two high volume startups,” said
David Reed, CEO, VFSL. “Young will play a
critical role in establishing best-in-class
semiconductor manufacturing processes and
operations,” he added. Before joining Vedanta,
Mike Young took a short sabbatical after serving
as the CEO of Systems on Silicon Manufacturing
Company (SSMC) in Singapore. VFSL has been
actively strengthening its leadership team,
having previously appointed industry veteran
David Reed as CEO, Lawrence (Wong Chee
Yoong) as senior director of human resources,
and recently hiring Terry Daly, a veteran from
IBM, as an adviser. MAYUR BHALERAO
A
greeing that the historic responsibil-
ity of climate change mitigation is
more on advanced economies, EU’s
climate policy chief Frans Timmer-
mans said on Thursday that the cli-
mate crisis transcends any political and economic
difference that India and EU might have.
European Commission executive vice presi-
dent for the European Green Deal Frans Timmer-
mans was speaking at the CII Annual Session
2023. “Of course, we have different starting posi-
tions, of course, the historic responsibility on
those economies who have been burning fossil
fuels for 200 years is bigger than those who came
to the party later. But at the end of day, if we don’t
act collectively, we will fail collectively,” he said.
This comes amid criticism among Indian policy
makers that a number of legislation brought by
countries such as US and EU are historically model yet. I hope we can convince the Americans complement the digital transformation
responsible for climate change. to put a clear price on carbon that will allow them priorities at 5paisa.com. Technology, both on
Talking about the importance of carbon pric- to plan over a longer period of time,” he added the infrastructure trading platform and user
ing, he said that the He feared that the interface experience side, will play a critical role
global community only thing Europe is in the brokerage industry going forward,”
will come to have a Timmermans said that the climate worried about is that promoter R. Venkataraman said. In December
comprehensible, crisis transcends any political and the US is creating a 2022, 5paisa.com announced merger of online
understandable sys-
tem of pricing car- economic difference that India and system which would
be protectionist that
retail trading business of IIFL Securities with
itself in an all-stock deal, which will add over 1.5
bon if it wants to EU might have would slow down million customers to 5paisa.com’s business once
decarbonize. And global economic the deal is through, taking the total customer
you need to create a growth. “It would count to 5 million, the statement added. PTI
system that is stable over a longer period of time. create a competition effect because then we
That is the success of the emissions trading sys- would start reacting..so if they don’t let our elec-
tem that we have. It’s now being copied by China. tric vehicle (EVs) on the market, we will have to
India is also thinking of a system of emissions.” respond the same way. So in our discussions with
Timmermans cautioned against protectionist the Americans, it’s always directed towards avoid-
NIIT demerges corp
moves while looking for ways to address climate ing the trap with protectionism,” he added.
learning business

I
n line with the reorganization plan outlined
India takes lead in by it, the board of NIIT Ltd has announced
Leave encashment rules relaxed that the corporate learning business
clean energy: IEA undertaking has been transferred to NIIT
Learning Systems Ltd (NLSL) with composite
The relief, which was announced in scheme of arrangement becoming effective as

I
ndia is emerging as a global leader in clean
energy investments, surpassing spending on
fossil fuels, as the country accelerates its
transition towards sustainable energy
solutions, according to a report released by the
International Energy Agency (IEA) on
Thursday.
Of the projected $2.8 trillion global energy
investment for 2023, more than $1.7 trillion is
expected to be allocated to clean technologies,
including renewables, electric vehicles,
nuclear power, grids, storage, low-emission
fuels, efficiency improvements, and heat
pumps. In contrast, investments in coal, gas,
and oil are estimated to amount to slightly over
Tax exemption on leave encashment raised
from ₹3 lakh to ₹25 lakh.
the Union budget speech this year, is
effective from 1 April, the CBDT order
showed.
The direct tax authority said that the
relief applies to the period of earned
leave in the credit of the employee at the
time of retirement whether on
superannuation or otherwise.
The total tax-exempt amount under a
section in the Income Tax Act dealing
with leave encashment of salaried
private sector employees shall not
exceed the limit of ₹25 lakh, said the tax
ISTOCK authority.
In the case of government employees,
The Kuno National Park houses cheetahs
translocated from Namibia and South Africa.
Two more cheetah
on 24 May. NIIT Ltd will continue to focus on
and operate the skills and careers business,
while NLSL would operate the corporate
learning business, according to a statement.
NIIT Ltd has completed demerger of corporate
learning business into NIIT Learning Systems
Ltd, the statement said, adding that the
demerger recognizes the distinct market
dynamics, customer segments, product
offerings, and growth trajectories of each
business. “We are excited about the profound
PTI impact we aim to make in the realm of global
talent development,” Rajendra Singh Pawar,
chairman and co-founder of NIIT Group said. PTI

cubs die at Kuno

$1 trillion.
India’s robust clean energy industry is
experiencing remarkable growth, with solar
investments taking centre stage. The IEA
report emphasizes that solar power is poised to
overtake investments in oil production for the
first time, underscoring India’s commitment to
T
he Central Board of Direct Taxes
(CBDT) has raised the tax
exemption on leave encashment on
retirement of non-government salaried
employees from ₹3 lakh to ₹25 lakh, the
tax authority said in a statement on
Thursday.
the entire leave encashment amount
received is tax exempt. In the case of
private sector employees, the benefit is
Rel unit, Lotus Choc
I
subject the conditions listed under n a setback for the country’s ambitious cheetah
section 10 of the Income Tax Act, which
deals with incomes exempt from
population revival programme, two more
India-born cheetah cubs have died at the Kuno complete deal
taxation. GIREESH CHANDRA PRASAD National Park (KNP) in Madhya Pradesh, a forest

renewable energy sources.
MiG-29K fighter makes maiden night landing on INS Vikrant
SAURAV ANAND official said on Thursday.
With this, the number of cheetah cubs that
have died at the KNP rose to three, while three
of the 20 adult cheetahs translocated from
South Africa and Namibia have also died at the
park.
A cub’s death had been reported in the park
R
eliance Consumer Products Ltd (RCPL), a
wholly-owned subsidiary of Reliance
Retail Ventures Ltd (RRVL), on Thursday
said it has completed the acquisition of 51%
controlling stake in Lotus Chocolate Company
for ₹74 crore.
“RCPL has also subscribed to non-cumulative

F
or the first time, the MiG-29K fighter aircraft undertook night landing on on 23 May.The two other cubs also died on the redeemable preference shares of Lotus for an
indigenously-built aircraft carrier INS Vikrant, a feat described by the same day, on Tuesday afternoon, but their aggregate consideration of ₹25 crore. RCPL has
Indian Navy as a “historic milestone”. deaths were reported only on Thursday. also completed the acquisition of equity shares
The Navy said the “challenging” night landing trial demonstrated the The official did not disclose the reason pursuant to the open offer made under Sebi
resolve, skill and professionalism of the crew of the INS Vikrant and the naval behind the deaths of these two cubs on the Takeover Regulations. RCPL has taken sole
pilots. same day. control of Lotus with effect from 24 May,” RRVL
The milestone was achieved on Wednesday night when the ship was sailing The Kuno Park houses cheetahs said in a fling to the exchanges on Thursday.
in the Arabian Sea, officials said. translocated from Namibia and South Africa as The deal was first announced in December
“The Indian Navy achieves another historic milestone by undertaking the part of an ambitious project to revive their 2022.
maiden night landing of MiG-29K on INS Vikrant. This is indicative of the population in India after the species became The capital infused by RCPL will help drive
Navy’s impetus towards Aatmanirbharta (self-reliance),” Indian Navy extinct in the country seven decades ago. As the growth and expansion of Lotus into a
spokesperson Commander Vivek Madhwal said. per an official release, the forest department’s comprehensive confectionery, cocoa, chocolate
In February, Russian-origin MiG-29K and a prototype of the Naval variant of monitoring team kept an eye on the derivatives and related products manufacturer
the indigenously developed Light Combat Aircraft (LCA) Tejas jets had The Navy said the night landing trial demonstrated the resolve, skill movements of female cheetah Jwala and her across industrial and consumer market
conducted day landings on the aircraft carrier. PTI and professionalism of the crew of the INS Vikrant. PTI remaining three cubs. PTI spectrum, RRVL said then. LIVEMINT
LIVEMINT.COM GLOBAL Friday, 26 May 2023
MuMbai 11

m MINT SHORTS
Russia signs deal to deploy tactical
Recession hits Germany as
first-quarter output shrinks
nuclear weapons in Belarus
Russia and Belarus signed a deal to formalize the deployment of
Russian tactical nuclear missiles on Belarusian territory, a step
Moscow said was driven by rising tensions with the West. “In the
context of an extremely sharp escalation of threats on the western
borders of Russia and Belarus, a decision was made to take coun-
termeasures in the military-nuclear sphere,” TASS news agency
quoted Russian defence minister Sergei Shoigu as saying. REUTERS
Germany has succumbed to a recession that chancellor Olaf Scholz had appeared to rule out in January
Crypto lender Celsius accepts
Bloomberg DIHK pointed to zero GDP growth for
Fahrenheit’s proposal feedback@livemint.com 2023.
ISTOCK
A Bundesbank report this week

G
ermany suffered its first
recession since the start
of the pandemic, extin-
guishing hopes that
Europe’s top economy
could escape such a fate after the war
in Ukraine sent energy prices soaring.
First-quarter output shrank 0.3%
from the previous three months fol-
lowing a 0.5% drop between October
and December, the statistics office
said Thursday. Its initial estimate, last
Bankrupt crypto lender Celsius Network LLC said it has month, was for stagnation.
chosen Fahrenheit’s proposal as the winning bid to man- “The reluctance of households to
age a new entity to be owned by its creditors, directing buy was apparent in a variety of
itself out of bankruptcy. Fahrenheit, a consortium that areas,” the office said in a statement.
includes blockchain-based venture capital firm Arrington “Households spent less on food and
Capital, will provide the capital, management team and beverages, clothing and footwear,
technology to establish and operate the new company and on furnishings.”
(NewCo), Celsius said. REUTERS They also purchased fewer electric
cars as incentives were reduced.
Elsewhere, there was a plunge in
Vessel refloated after briefly government expenditure, while
investment was up—aided by con-
running aground in Suez Canal struction in unseasonably warm
A bulk carrier that briefly ran aground in the Suez Canal was weather.
refloated, clearing a disruption to one of the world’s most vital The result is a setback for Ger-
waterways. The Xin Hai Tong 23 was successfully lifted at 7:40 am many, which despite escaping the
local time, according to a message posted to Twitter by Leth Agen- bleakest scenarios feared in the after-
cies, a company that provides services for the passage. The ship math of Russia’s invasion has never-
halted some traffic on the canal when it ran aground earlier in the theless succumbed to a recession that
day, but the Suez Canal Authority said traffic is back to normal in chancellor Olaf Scholz appeared to
both directions. BLOOMBERG rule out in January.
“We must turn the corner in eco-
nomic policy and put an end to the
‘China-backed hacker targeted neglect of our competitiveness,”
finance minister Christian Lindner
infrastructure in Guam, US’ said in Berlin.
AP
This included the “acceleration of
planning and approval procedures
First-quarter output shrank 0.3% from the previous three months following a 0.5% drop between Oct and Dec.
and strengthening the idea of techno-
logical freedom in order to leverage
our creative potential,” he added.
Markets shrugged off Thursday’s
numbers —despite their implications
for the wider performance of the
20-nation euro zone.
“The scale of the downward revi-
sion to German GDP data means
euro-area growth is likely to be
revised lower in the first quarter.
Other things equal, it would point to
the region’s economy having stag-
nated at the start of 2023, but other
downside revisions could well tip the
rounding and place the region in a
technical recession,” said Bloomberg
economists Maeva Cousin and Niraj
Shah
In Germany, companies like Zal-
ando SE reflect the flagging con-
sumer sentiment.
The fashion retailer saw inventory
levels driven higher in the first quar-
ter by falling demand.
Domestic car orders, meanwhile,
BLOOMBERG
were down by about a third between
January and April, according to the
VDA auto industry association.
The key manufacturing sector is
also proving to be a problem: A deep-
ening downturn is casting doubt on
the rebound many anticipate for the
coming quarters.
Indeed, industrial weakness is tak-
ing a toll on the business outlook. A
gauge of expectations by the Ifo insti-
tute fell for the first month in eight in
May, while a survey by lobby group
offered some optimism—suggesting
the economy may grow “slightly” this
quarter as large order backlogs, an
easing of supply bottlenecks and
lower energy costs support manufac-
turers.
But goods demand is cratering as
consumers faced with elevated infla-
tion prefer to splurge on leisure and
travel.
That’s making economic growth
increasingly uneven—a trend some
analysts say isn’t sustainable.
“The optimism at the start of the
year seems to have given way to more
of a sense of reality,” ING economist
Carsten Brzeski said in a report to cli-
ents. “A drop in purchasing power,
thinned-out industrial order books as
well as the impact of the most aggres-
sive monetary policy tightening in
decades, and the expected slowdown
of the US economy all argue in favour
of weak economic activity.”
For economists at Commerzbank,
a second-half recession now looks
likelier than the rebound most of
their colleagues continue to forecast.
Inflation isn’t helping. It still
exceeds 7% and isn’t expected to
retreat quickly as rising wages feed
strong underlying pressures, accord-
ing to the Bundesbank.
The European Central Bank’s
efforts to bring price gains back to its
2% target risk further damping
demand. Bank loans are already get-
ting pricier and interest-rate hikes
aren’t yet complete, risking a
stronger drag on growth.

Amazon shareholders reject Rock & roll music legend

outside proposals, re-elect board Tina Turner dies at 83
Bloomberg on sensitive topics. On the bal- AP financially ruined by her
Microsoft Corp said it had uncovered malicious activity by a feedback@livemint.com lot this year were a record 18 feedback@livemint.com 20-year relationship with Ike
state-sponsored actor based in China aimed at critical infra- outside resolutions amid gov- new york Turner, she became a superstar

A
structure organizations in Guam and the US. Microsoft said mazon.com Inc share- ernment investigations of on her own in her 40s, at a time

it assessed with “moderate confidence” that this Volt holders voted down a
Typhoon campaign “is pursuing development of capabilities slate of outside resolu-
that could disrupt critical communications infrastructure tions that would have asked the
between the US and Asia region during future crises.” REUTERS company to disclose more on
workers’ rights and its climate
change work, among other
Acquirer of Silicon Valley Bank issues.
Investors also approved
sacks 500 employees Amazon’s executive pay prac-
The bank that acquired the remnants of Silicon Valley Bank after tices, despite recommenda-
it failed amid a March bank run announced layoffs. First Citizens tions for a “no” vote from major
Bank of Raleigh, North Carolina, said it was cutting about 500 jobs, shareholder advisory firms.
or about 3% of its workforce. CEO Frank Holding said the move The company re-elected its
would only affect “select” corporate Silicon Valley Bank positions, slate of directors, one of whom
adding that neither employees in customer-facing jobs, nor mem- was returned to the board over
bers of a team based in India, would be impacted. CEO Frank Hold- the objections of proxy advis-
ing said the move would only affect “select” corporate Silicon Val- ers. Vote totals weren’t imme-
ley Bank positions. PTI diately available. Amazon typi-
Investors approved Amazon’s
executive pay practices. MINT
cally posts them in the days
after the meeting.
The company’s annual
meeting has long been a forum
for critics to voice their con-
cerns through resolutions
demanding greater disclosure
injury rates at company ware-
houses and criticism of Ama-
zon on a range of other social
and environmental matters.
Some current and former
frontline workers, including
fired employee and Amazon
labour union leader Chris
Smalls, spoke on behalf of the
proposals.
Major proxy advisers had
urged investors to approve
shareholder resolutions calling
for assessments of Amazon
employees’ working conditions
and freedom to organize, as
well as review investments in
surveillance technologies.
T
ina Turner, the unstop-
pable singer and stage
performer who teamed
with husband Ike Turner for a
dynamic run of hit records and
live shows in the 1960s and ‘70s
and survived her horrifying
marriage to triumph in middle
age with the chart-topping
“What’s Love Got to Do With
It,” has died at 83.
Turner died on Tuesday,
after a long illness in her home
in Küsnacht near Zurich,
Switzerland, according to her
manager. She became a Swiss
citizen a decade ago.
Few stars travelled so far—
Tina Turner died after a long
illness in her home. AP
she was born Anna Mae Bullock
in a segregated Tennessee hos-
pital and spent her latter years
on a 260,000 square foot estate
on Lake Zurich—and overcame
so much. Physically battered,
emotionally devastated and
when most of her peers were on
their way down, and remained
a top concert draw for years
after.
She sold more than 150 mil-
lion records worldwide, won 12
Grammys, was voted along
with Ike into the Rock and Roll
Hall of Fame in 1991 (and on her
own in 2021) and was honored
at the Kennedy Center in 2005,
with Beyoncé and Oprah Win-
frey among those praising her.
Her life became the basis for a
film, a Broadway musical and
an HBO documentary in 2021
that she called her public fare-
well.
12 Friday, 26 May 2023
MuMbai LONG STORY LIVEMINT.COM

WHY NUSLI WADIA’S SOS

couldn’T sAve Go firsT
What went wrong with the low-cost airline? Here’s the inside story

GROUND Nov 2005

GOAIR is founded
TO A HALT by Jeh Wadia, son
of Nusli Wadia
Go First has gone
bust after being in
operation for roughly Jun 2011 Oct 2018 2018 Mar 2021 May 2021 Aug 2021 Mid 2022 May 2023 June 2023*
17 years PLACES an order of INTERNATIONAL CONSIDERS JEH Wadia GOAIR is RECEIVES THE IPO plan FILES for voluntary FLIGHTS likely to
144 Airbus 320 flights are raising money resigns as MD renamed Go First approval from is cancelled insolvency on resume; no plan
A brief timeline
(neos) to expand a launched through an IPO Sebi for the IPO 2 May; cancels flights submitted to the aviation
fleet size of 10 starting 3 May authorities as yet
Jeh Wadia
*Expected; IPO: initial public offering; MD: managing director; Sebi: Securities and Exchange Board of India Source: Company data, media reports
SARVESH KUMAR SHARMA/MINT

The number of Go Airlines’ aircraft grounded due to engine issues averaged 30.5% in 2020; 25.6% in 2021, and 33.9% in 2022, the company stated. Between 2016 and February 2023, it carried out 289 engine changes and 221 engine swaps. REUTERS

Mihir Mishra & Varun Sood pensate Go Airlines for the losses it incurred.
mihir.m@livemint.com Pratt &Whitney, part of the Raytheon
neW delHi/BengAlUrU group, the world’s largest aerospace and
defense manufacturer, maintained that
engines, IndiGo and Go Airlines were the
second and third carriers to use these
engines, globally.
For the first six years, Go Airlines was
per week for the 2021 winter schedule.
mint
SHORT The market share fell to 7% in October
STORY 2022. When it filed for insolvency, the air-
line had a share of 6.8%. Market share
lier upgrades made to the GTF, and a busi-
ness dispute with Go First are separate,
and cannot be clubbed together as ‘engine
issues’,” the company stated. This is a

O
n 25 March, the fight to the airline wanted to ‘jump the queue’ conservative, only operating a fleet of 10 drops also underline a hit to its finances commercial and contractual dispute, now
save Go Airlines (India) Ltd (ignore the company’s other customers) in Airbus 320 aircraft. However, beginning WHAT and the capability to service payments. under litigation, the company added.
finally landed before Mich- terms of engine delivery. June 2011, the company turned aggres- According to estimates, Go Airlines owes Analysts, meanwhile, say that the air-
ael Lee, an emergency arbi- Whatever the reason, the engines never sive—it placed an order for 144 Airbus 320 Go Airlines has filed for various creditors about ₹11,000 crore. line’s problems are due to its dependence
trator in Singapore. arrived and Wadia’s fears came true. 37 days family aircraft. insolvency. The company has on one engine and that the engine maker
Talks between the Indian company, later, on 2 May, Go Airlines filed for volun- Pratt &Whitney’s GTF engines were blamed engine maker ‘A VERY BIG GAP’ is more at fault than the airline. “Unlike
which ran the airline Go First, and Ameri- tary insolvency with the National Company
can engine manufacturer Pratt & Whit- Law Tribunal (NCLT) in New Delhi.
ney, had ended in a deadlock. The engine The engine trouble was the last straw
picked over CFM International’s engines.
CFM is a 50:50 joint venture between GE
Aviation and Safran Aircraft Engines.
Pratt & Whitney for not replacing
faulty engines. This crippled its
operations, the firm maintains.
W adia, before the arbitrator,
explained the company’s losses.
“Right now, we are losing $25 million a
IndiGo, which hit critical mass with its
fleet around 2013, with the stable CFM-in-
stalled Airbus A320, GoAir’s over-depend-
maker did not replace or provide spare that broke the proverbial camel’s back. The Larger rivals, Air India and Vistara, power month,” he said when asked on the num- ence on a single type of engine (PW-GTF)
engines for the faulty ones, crippling the company had already hit an air pocket and their Airbus 320 (neos) with CFM engines. ber of engines the airline needed to keep led to this disaster,” said Martin.
low-cost carrier’s operations, Go Airlines was shaky because of internal problems. Go Airlines went with GTF engines SO itself afloat for six months.
held. By March, half of the airline’s fleet of Jehangir (Jeh) Wadia, Nusli Wadia’s son, because they are more fuel efficient and “It’s a very big gap. Our turnover, our SURVIVAL CHANCES
54 Airbus 320 (neos) were grounded. who had been the managing director (since
Nusli Wadia, the 79-year-old chairman December 2017), stepped down in March
of the Wadia Group, which owned Go Air- 2021 over differences with his father, leav-
promised lower operational costs. Signifi-
cantly, Pratt &Whitney agreed to finance
the pre-delivery payments to be made to
Besides quick delivery and
replacement of engines, Go
Airlines wanted Pratt & Whitney
revenue would be in the order of $150 mil-
lion. Currently, it’s in the order of $64 mil- T
he airline’s appeal for insolvency has
been admitted by the NCLT court in
lion. That gap is of $86 million. You (air- Delhi and an Interim Resolution Profes-
lines, logged in for the virtual hearing, ing the carrier without an astute boss. Airbus for the aircraft, according to court to award $416 million to the line/prompters) are bearing 100% of all sional (IRP)—Abhilash Lal—has been
along with Varun Berry, the former chair- Then, Go Airlines was unable to raise filings reviewed by Mint. carrier, on account of the costs,” he added. appointed to run the airline.
man of Go Airlines. Pratt & Whitney was money through a public issue of shares. In the sale and leaseback (SLB) model of losses it had incurred. Wadia further brought up a human Government officials told Mint they are
represented by Hendrick ‘Rick’ Deurloo, The Securities and Exchange Board of financing aircraft purchase, an airline has resources issue, which is linked to the air- hopeful that the airline will return to the
president of the company’s Commercial India (Sebi) had initially held back from to make about 30% of the cost of the plane line flying again. skies, based on their interaction with the
Engines division. giving its nod—the market regulator was (varies depending on the order size and BUT “I have got 57% of my pilots sitting on new management under the IRP.
“The organization will fall apart,” unhappy with accounting practices at a negotiations) as pre-delivery payment. the ground and they are very expensive “It is imperative for the aviation industry
Wadia told the arbitrator. group company. When Sebi finally green- Normally, airlines take bridge loans to Pratt & Whitney said there is no people,” he said. “So, I have another in India that the airline restarts. The IRP-led
Besides quick delivery lighted the IPO, the mar- fund these payments. merit in the allegation that it is threat. If people—my management (RP Lal and
of the engines, he wanted Revenues (in ₹ crore)
kets, globally, had started While the financial deal looked favour- responsible for Go Airlines’ employees, my pilots Profit/loss (in ₹ crore)
operational staff) has given
Pratt & Whitney to award 7,203 diving, and the company able for Go Airlines, engine troubles soon financial condition; the company and others—don’t see us hope of a resumption,”
6,411 2016-17 205
$416 million to the car- did not go public. Finally, surfaced. will vigorously defend itself and relief coming, they will said the official, who did
rier, on account of the 4,745 the covid-19 pandemic pursue its own legal recourse. leave the airline. If the not want to be identified.
losses it had incurred. made things worse. PREMATURE DEGRADATION relief comes too late, I 2017-18 152 The airline company
3,530
The engine maker,
apparently, had compen-
sated InterGlobe Avia-
Meanwhile,the Indian
skies have been getting
busier. Another low-cost
A ircraft with the GTF engines were
inducted into Go Airlines’ fleet in mid-
2016. Within four months, in September
grounded because the airline does not
have sufficient serviceable GTF engines.
won’t have the pilots, I
won’t have the organi-
zation. So, the number
2018-19 123
under the new manage-
ment, for now, has not
given a firm date to restart
tion, India’s largest air- airline, Akasa Air, started 2016, an engine had to be removed because Of the 144 Airbus 320 (neo) family aircraft of engines and the -1,278 2019-20 operations to the Direct-
2016-17 2017-18 2018-19 2019-20
line company, for similar flying in August 2022. of faults. This problem was not limited to ordered, the first 72 were internally speed of that is critical orate General of Civil Avi-
engine failures. Inter- Air India, under the Tata Go Airlines and recurred with carriers glo- referred to as the first batch. for our existence for the ation (DGCA), India’s avi-
Globe Aviation runs IndiGo. Group, has placed a record 470 aircraft bally. Put simply, the engines degraded pre- Unofficial estimates suggest that about next six months,” he argued. ation regulator. Some say that the airline
The engines in dispute are called Gear order. Go Airlines, even without the maturely, causing shutdowns and failure. 85 Airbus 320 (neos) and 48 Airbus 321 Go Airlines stated that the financial could restart in June but no firm proposal
Turbo Fan (GTF) engines—they have a engine troubles, ran the risk of sliding into Between 2016 and February 2023, Go (neos), fitted with the GTF engines from impact on Pratt & Whitney will be minimum has been submitted to the regulator yet.
gear box between the fan and a low-pres- insignificance. Airlines carried out 289 engine changes Pratt &Whitney, are grounded across the – “a rounding error”—even when it com- Nonetheless, the DGCA has sought a com-
sure shaft. This design results in lower fuel Wadia’s reasoning made before the (removal of a failed engine to replace it with globe, including India. pensates for the non-delivery of engines. prehensive flights resumption plan within
consumption and is also less noisy com- mediator and the company’s filings in a a serviceable engine) and 221 engine swaps Analysts Mint spoke to said that the A person close to the airline’s earlier man- 30 days. The airline has been asked to furnish
pared to other engines. IndiGo is the only Delaware court in the US succinctly tells the (removal of a serviceable engine from a problem is not one of supply chain; it has agement said that the company was forced the availability status of operational aircraft
other Indian airline that operates Airbus tale of the carrier’s fall over the last one year. grounded aircraft to install it on a second to do with the quality of the engine. to opt for the Singapore arbitration after fleet, maintenance arrangements, required
320 (neos) with GTF engines. This story stitches these submissions; some aircraft), the airline said in the court filing. “Pratt &Whitney-GTF issues, at the Pratt & Whitney’s decision to suspend main- technical staff, pilots and other personnel.
“We understand that financial relief is of this haven’t been reported until now. The number of Go Airlines’ aircraft moment, plague Lufthansa, IndiGo, ANA, tenance repair and overhaul (MRO) opera- But like Wadia feared, retaining people
being provided to our competitor because grounded due to engine issues aver- Hong Kong Express, Turkish Airlines, Air tions from May 2022, and after a recent pro- would be the next challenge. The com-
they said so on their investor call,” Wadia THE BACKSTORY aged 30.5% in 2020; 25.6% in 2021; Senegal, United Airlines, Jet Blue, Swiss posal in February 2023 to induct no more pany’s employees are already looking for
told Lee. “I would look for some relief,
financial relief, to help us along the way
for the next six months”.
H ow did the dispute between Go Air-
lines and Pratt &Whitney start? Let
us step back.
33.9% in 2022.
From 1 January 2020 to 28 February
2023, there were 17,244 ‘aircraft on
Air and Air Baltic as much as it does Go Air.
It is high time Pratt & Whitney got mature
enough to take a firm step and discontinue
than two to three engines per month. jobs elsewhere, one employee Mint spoke
In a clarification to Mint, Pratt & Whit- to, said. The experience of the defunct Jet
ney said that the allegation that it is Airways, which failed to take off even after
Lee saw merit in Wadia’s plea but only The airline started operations in ground’ days—the cumulative number of the GTF series engine for good,” said Mark responsible for Go Airlines’ financial con- finding a buyer, doesn’t give them much
partially. He directed Pratt &Whitney to November 2005, about nine months days during which an aircraft is grounded Martin, founder and CEO at Martin Con- dition is without merit and the company confidence. Aviation jobs, however, are
supply 10 serviceable engines within a ahead of IndiGo. Back then, the brand was and cannot fly— across the airline’s fleet of sulting, an aviation consultancy firm. will vigorously defend itself and pursue its booming, with both Air India and IndiGo
month and provide 10 engines, every known as GoAir. ‘first batch aircraft’. The groundings impacted Go Airline’s own legal recourse. “It is important to note planning international and domestic
month, until December 2023. But the arbi- While Lufthansa was the first airline to As of March, 28 of the airline’s ‘first marketshare. It had a 9.8% domestic share that the current worldwide supply chain expansion. The 6,000-odd employees of
trator did not ask the engine maker to com- operate Airbus 320 (neos) with GTF batch’ aircraft (52% of its total fleet) were in October 2021, with 2,290 departures issues, durability enhancements, the ear- Go Airlines, therefore, remain hopeful.
LIVEMINT.COM MINT MONEY FRiday, 26 May 2023
MuMbai 13

How laddering, barbell can MINT 20 MUTUAL FUND

SCHEMES TO INVEST IN
get better returns for FDs 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)

These strategies, along with compounding period selection, maximizes returns from the deposits LARGE-CAP
UTI Nifty Index Fund - Growth 27.65 12.68 10,615
HDFC Index Fund - Nifty 50 Plan 27.42 12.46 8,268
By Akshat Rohatgi would be approximately ₹5.87 lakh Category average 27.11 12.35
mintmoney@livemint.com Unraveling the FD puzzle with laddering, compared to ₹5.54 lakh for the long-
EQUITY FLEXICAP
barbell and compounding period selection term FD over the 3-year period. Thus,

D
oes the term barbell ring a an additional interest of ₹33,000 can Canara Robeco Flexi Cap 24.85 13.22 9,096
bell? How about ladder- Barbell strategy be earned. Parag Parikh Flexi Cap 30.00 17.55 33,616
ing? These are two strate- ₹20 lakh Compounding period selection
Fixed deposit Category average 26.94 11.91
Involves dividing the portfolio into short-term
gies that help retail inves- and long-term FDs, and avoiding the For FDs with monthly compound-
tor maximize the returns intermediate-term FDs. ing, the interest is added to the princi- EQUITY SMALL AND MIDCAP
on the fixed deposits. 40% 60% pal more frequently, resulting in a Axis Midcap 26.06 15.16 19,539
Barbell strategy Why it is ₹8 lakh ₹12 lakh
higher effective interest rate over time. SBI Small Cap 40.07 15.67 16,592
The barbell strategy is an approach important Interest rate 7%^ 8%^ Assuming a nominal interest rate of
Investing in Tenor 6 months 3-5 years Category average Midcap 33.82 13.21
that involves dividing the FD portfolio 8.5%, the investment with monthly Category average Smallcap 44.16 14.33
short-term FDs Rates continue to rise for the next 6 months; ^Reinvested at a higher
into short-term and long-term fixed allows for potential rate of 9.0% after 6 months for a longer duration compounding would generate approx-
deposits, while avoiding intermediate- reinvestment at Effective return imately ₹5.78 lakh in returns over a EQUITY (TAXSAVER)
term FDs. This strategy is implemented higher rates if they One can earn (over a 3-year period) 3-year period. On the other hand, the
rise, while long-term additional Canara Robeco Equity Tax Saver 27.60 15.03 5,207
to take advantage of potential interest investment with annual compounding
FDs lock in higher interest of Mirae Asset Tax Saver 30.54 14.70 15,218
rate fluctuations. rates and protect 34,000 Barbell strategy Long-term FD* would yield around ₹5.54 lakh in
Category average 27.22 11.19
Let’s consider a portfolio of ₹20 lakh. capital if rates by following a ₹5.53 lakh ₹5.19 lakh returns over the same duration.
The barbell strategy suggests allocating decline. barbell strategy By carefully selecting the com-
40% (₹8 lakh) to shorter-term FDs with
*20 lakh invested @8%
pounding period, an additional interest HY BR ID
a tenor of 6 months, and 60% (₹12 lakh) of ₹24,000 can be earned. This high- BALANCED ADVANTAGE
to longer-term FDs with a tenor of 3-5 Laddering strategy ₹20 lakh lights the significance of compounding Edelweiss Balanced Advantage 18.00 10.85 8,907
years. Assuming an initial interest rate Laddering is an investment Fixed deposit frequency in enhancing investment ICICI Prudential Balanced Advantage 18.90 10.17 45,584
strategy that spreads out
of 7% for the shorter-term FDs and 8% your money across different
returns. Category average 16.72 8.94
for the longer-term FDs, the returns maturities to maximize 25% 25% 25% 25% Interest income
over a 3-year period can be calculated. returns and reduce risk. ₹5 lakh ₹5 lakh ₹5 lakh ₹5 lakh When it comes to cumulative FDs, ARBITRAGE
If interest rates continue to rise for Interest rate 7%* 7.5%** 8.5%# 8.5% banks automatically deduct tax deducted Kotak Equity Arbitrage 4.39 5.14 20,587
the next 6 months, the shorter-term Tenor 6 months 1 year 2 years 3 years at source (TDS) if the interest earned Tata Arbitrage 4.21 NA 5,762
FDs will mature. The reinvested funds Rates continue to rise for the next 6 months and remain stagnant over exceeds ₹50,000 in the case of a senior Category average 4.06 4.75
can then be placed in longer-term FDs the next 2 years; *Reinvested at a higher rate of 9.5% after 6 months for one year citizen and ₹40,000 for others. This
Why it is **Reinvested at a higher rate of 9.75% after 6 months for 2 years
at a higher rate of 9% for a longer dura- important #Reinvested at a higher rate of 10% after 6 months for 3 years deduction reduces the actual maturity 1-year return* 3-years return Corpus
tion. Based on this scenario, the effec- Reduces the amount received by the investor. How- DEBT (%) (%) (₹ cr)
One can earn Effective return
tive returns for the barbell strategy impact of (over a 3-year period) ever, another loss occurs due to the non- SHORT TERM
would be approximately ₹5.53 lakh, interest rate additional compounding of the TDS amount, as the
interest of HDFC Corporate Bond 7.19 26,612
5.62 24,430
fluctuations by
compared to ₹5.19 lakh for the long- reinvesting at 33,000 potential compound interest on that IDFC Corporate Bond 6.01 14,464
5.12 11,980
Laddering strategy Long-term FD*
term FDs over the 3-year period, earn- different rates by following amount is also lost. This further impacts
₹5.87 lakh ₹5.54 lakh Category average 6.77 5.54
ing additional interest of ₹34,000. over time. a laddering the final maturity value of the FD.
Laddering strategy strategy *20 lakh invested @8.5% Strategies and risks CREDIT RISK
The laddering strategy is an invest- Laddering and barbell strategies carry interest rate and liquidity risk. Both laddering and barbell strategies 8,573
HDFC Credit Risk Debt 6.98 7.60 24,430
ment approach that involves spreading carry certain risks that investors should
ICICI Prudential Credit Risk 6.88 7,828
7.02 11,980
out your money across different matu- Compounding period selection be aware of. With laddering, the fluctu-
rities to maximize returns and reduce ₹20 lakh 8.5% ation of interest rates may result in Category average 6.96 7.41
Monthly Fixed deposit Interest rate
risk. By dividing your investment into compounding One can earn lower overall returns. Additionally, the
6-month 1-year Corpus
equal portions with staggered maturity generates slightly additional interest Effective return funds allocated to longer-term FDs DEBT (LESS THAN 1 YEAR) return* (%) return* (%) (₹ cr)
dates, the laddering strategy offers flex- higher returns than of 24,000 (over a 3-year period) may become locked, reducing liquidity
yearly compound- by carefully HDFC Money Market 3.76 6.58 15,509
ibility and helps manage interest rate selecting the
and limiting the ability to seize better
ing, assuming the Kotak Money Market 3.77 6.62 15,654
fluctuations. same nominal compounding 3 year @monthly 3 year @annually investment opportunities that may
Let’s again consider a portfolio of period arise. Similarly, the barbell strategy is Category average money market 3.74 6.55
interest rate. ₹5.78 lakh ₹5.54 lakh
₹20 lakh. The laddering strategy sug- Source: Mint Research
not immune to risks, especially when
Returns since Date of Corpus
gests allocating 25% (₹5 lakh) each to interest rates fall instead of rising as OU T OF T HE BOX launch launch (₹ cr)
FDs with different tenors and interest expected. This can lead to lower 4.95 23 Jul 2020
BHARAT Bond ETF - April 2031 12,606
rates. Assuming an initial interest rate vested at a higher rate of 9.75% after 6 starting at 8.5%, is reinvested at a returns from long-term FDs and rein-
Motilal Oswal S&P 500 Index Fund 15.60 28 Apr 2020 2,664
of 7% for the first FD, the funds are rein- months for a two-year tenor. The third higher rate of 10% after 6 months for a vesting funds at lower rates upon short-
vested at a higher rate of 9.5% after 6 FD, with an initial interest rate of 8.5%, three-year tenor. term FD maturity. *Absolute returns
Returns as on 22 May 2023; Corpus data as of April 2023; Growth option in regular plans has been used
months for a one-year tenor. The sec- remains unchanged for the entire Based on this scenario, the effective (For an extended version of this story,
Data and analysis by CRISIL Research Compiled by Neil Borate
ond FD, also starting at 7%, is rein- duration of 2 years. The fourth FD, returns for the laddering strategy go to livemint.com)

Interest rates matter: risks and rewards of locking in FDs

Akshat Rohatgi adopted a hawkish monetary predictable cash flow, which when interest rates rise later To better understand the However, if interest rates
mintmoney@livemint.com policy stance, raising key pol- can be advantageous for finan- on. On the other hand, if inter- risks associated with locking in were to rise to 9.5% after a
icy rates to rein in inflation. cial planning purposes or est rates increase interest rates, let’s year, and the individual rein-

What will be the tax
implication on gift
received from NRI?
Archit Gupta
I constructed a new house
using my savings after
demolishing the old house
that was built by my father
in parts in 1971 and 1979.
The construction took
place in 2014 on a plot that
was originally in my
father’s name. In 2016,
after the completion of the
construction, my mother
gifted the house to my NRI
I
MINT
m ASK MINT
N R I TA X AT I O N
capital gains.
You shall be allowed to
reduce the indexed cost of
acquisition from the selling
price. You can also consider
the cost of improvement made
and index that according to
the year in which the improve-
ment was made and reduce it
from the sale price to arrive at
nterest rates are currently
peaking in several econo-
mies, including the US and
India. The Federal Reserve in
the US and the Reserve Bank
of India (RBI) have been grad-
ually increasing rates to curb
inflationary pressures and
maintain economic stability.
In India, inflationary concerns
have been heightened by ris-
ing global commodity prices,
elevated crude oil costs, and
increased government spend-
ing. As a result, the RBI has
HERE’S MY EXPERIENCE OF GETTING A FREE HEALTH CHECK-UP
POWER
POINT
ABHISHEK BONDIA
Respond to this column at
feedback@livemint.com
This presents an opportune
time for investors to consider
fixed deposits (FDs) and lock in
at high rates. Indian FD rates
have been on an upward tra-
jectory, reflecting the tighten-
ing monetary policy and the
aim to attract deposits.
Why lock in rates?
Locking in interest rates
when investing in FDs pro-
vides certainty regarding the
interest income that will be
earned over the duration of
the investment. This offers a
when aiming to align cash
inflows with specific future
expenses or goals.
During different interest
rate cycles, the decision to lock
in rates can have varying out-
comes. For example, if an
investor locks in an FD at a
higher interest rate during a
period of low rates, they will
continue to earn the higher
rate until the FD matures. This
can result in greater returns
compared to investors who
enter into FDs at lower rates
after investing in consider an vested the maturity amount in
an FD, the The decision example. Suppose a new FD at the higher rate, the
locked-in rate to lock in an individual potential interest income for
may become less rates can have invests ₹20 lakh the remaining 2 years would
favourable com- varying outcomes in an FD for a be approximately ₹603,512.
pared to the duration of 3 By locking-in interest rates
during different
higher rates years at an inter- at a time when rates could
available. In such interest rate est rate of 8.5% move up, investor loses an
cycles
cases, investors
may miss out on
the opportunity
during a period of
low rates. With
annual com-
additional interest of ₹60,000.
In this scenario, by not locking
in the initial rate for the full 3
to earn higher returns until the pounding, the investment years, the investor would ben-
FD matures and can be rein- would generate approximately
vested at a new, potentially ₹5,43,527 in interest income
efit from the higher interest
rate and earn a higher overall
higher, rate. over the 3-year term. return on their investment.
folder of a third lab! By this time I had lost my will to protest. I had
fasted for the last 12 hours and did not have much of an option.
The blood work was professional, and it was the fastest ECG I had
ever done. The funny part was when the person asked to disclose
my alcohol intake for the personal declaration form. I responded
candidly. Yet, when he finally asked me to sign the declaration,
I found the column on alcohol to be blank. I protested and
entered the details myself.
The report and the aftermath
Once the samples were collected, I did not get an acknowl-
edgment from the lab. It’s a practice I have got used to with

daughter. Now, in 2023, my
daughter intends to gift the
house back to me, and I
plan to sell it as soon as pos-
sible. I would like to know
the capital gains tax impli-
cations for me upon selling
the house.
—Name withheld on request
Your father seems to be the
original owner of the property.
Kindly note that it is not clear
how your mother came into
possession of the house. It is
assumed that the house was
willed or gifted to her.
For the calculation of capital
gains, the date on which your
father became the owner of
the property shall be consid-
ered for the purpose of indexa-
tion of cost and calculation of
I
capital gains.
Your capital gains shall be
taxed at 20% after indexation.
You are allowed to save tax on
these capital gains, by either
investing them to purchase a
new house or buying capital
gains bonds or you may
deposit the money in a capital
gains account scheme and
comply with the stipulations
so that you can claim an
exemption from tax on capital
gains.
Archit Gupta is founder and
chief executive officer, Clear.in.
Do you have a personal
finance query? Send in your
queries at
mintmoney@livemint.com
and get them answered by
industry experts.
nsurers have invested substantially in value-added services to
improve their engagement with health policy subscribers.
Towards this end, many health insurance policies provide for
an annual complimentary health check-up. Unfortunately, most
policyholders aren’t aware of this feature. The ones in the know
often ignore it because of the perceived hassles involved. I
decided to avail the free health check-up embedded in my insur-
ance—provided by one of the largest private sector general insur-
ers— and test the user experience.
The health package
My first port of call was the mobile app. but it had no mecha-
nism to book an appointment for the check-up. In fact, it had no
mention of a complimentary health check-up. I then decided on
the old-fashioned method of calling customer care. While I was
skeptical about explaining the freebie to a customer care repre-
sentative, I was positively surprised with the response. The fea-
ture was instantly acknowledged and the executive was forth-
coming to help book an appointment. What the insurer lacked
in technology, they made up with their customer service.
In a free package, one should expect less than the usual menu.
However, this was literally the bare bones. It omitted several
tests. There were no vitamin tests, no echo/TMT, or any other
radiology tests. While the lipid tests included total cholesterol,
it skipped triglycerides. This free check-up could well be the
same package the insurer uses for its medical underwriting. It was
definitely not designed as an annual wellness programme and so
does not serve its purpose.
Selection of lab and blood collection
This was the step where I almost dropped out of the process.
The health check-up could be availed only in the network of the
insurer, understandably so. However, there was neither a single
hospital in that list nor any well-known national chain of labora-
tories. One lab was the namesake of a ride hailing service! I finally
selected a start-up in the space that I had heard recently about.
Yet, several hours later, I got a confirmation for a lab that I had not
selected. It was the taxi namesake. I called up the customer ser-
vice again and they informed me that a change of lab will mean
a delay of a few more days. I quickly realized that it may be a lost
battle and reconciled with the assigned lab.
A phlebotomist arrived on the morning of the scheduled
appointment date to take blood samples. But he was carrying the
other labs. Before I could call the customer service, the reports
came via email in the evening. I was in perfectly good health.
Not one marker was off. Just as I was about to feel good about
my latest fitness routine, I saw the values of my alcohol intake.
Those were overwritten with white ink. The original values
were low, but they had still been altered. Why would someone
find it necessary to change that? More importantly, I now felt
the need to recheck all other parameters as well.
As I got ready to reply to the sender of the report, I realized that
the email id was that of a fourth organization, different from the first
three labs. The subject read, ‘Medical reports for Life Application”.
This was wrong at so many levels. The lab may have thought this to
be a check-up for medical underwriting for a new policy and acted
accordingly. In either case, they are doing a disservice to the insurer.
Getting user experience right is difficult. More so in health
care, where the delivery is fragmented. However, in such situa-
tions, it is important for insurers to align the interest of various
stakeholders. While the delivery itself could be done by third par-
ties, insurers should have a stronger control on communication
processes. By removing surprises, and making the process more
predictable, insurers can manage the experience much better.
Abhishek Bondia is principal officer and managing director,
SecureNow.in.
14 FrIdAy, 26 MAy 2023
MuMbAI VIEWS LIVEMINT.COM

OUR VIEW MY VIEW | TECH WHISPERS

AFP

Generative AI will require us to

recalibrate how we do our work
It can take care of mundane tasks and liberate our schedules to focus on what best generates value

virtually no time for any deep thinking.
As the Generative AI tidal wave
sweeps across industries and offices, I
believe what it will impact the most is
this aspect of corporate life. We often
do not consider work as an industry in
itself, though it is a several trillion dollar
one, and confuse work with jobs. We are
rightly worried about how AI will
JASPREET BINDRA impact jobs, but tend to neglect how it
is a technology expert, author of ‘The Tech will impact work. Investigating this, I
Whisperer’, and is currently pursuing his stumbled on another post, this time on
Masters in AI and Ethics from Cambridge LinkedIn, which had a wonderful way
University to deconstruct work into three kinds.
ChatGPT and its ilk are reasonably pro-
ficient at cognitive tasks, and therefore
have the potential to help humans in the
third work area of creative tasks. Copy
and Jasper help create great marketing
material, Stable Diffusion and Dall-E2
create amazing images for artists and
designers, Jukebox help create ad jin-
gles and GitHub Copilot writes solid
code. AI won’t create superlative pieces
of work, at least not yet, and will require
human workers to finesse and fine-tune
its output to perfection. What this will
do is enable you and me to focus more

National symbols must

The first is where you must act, which is on the act part of work: being a star
about your role, be it as an accountant, a investigative journalist, for example, or

I
was struck by a remarkable state- programmer, marketer or a journalist. a 10x programmer, creative marketer,
ment by software engineer Kent The second is where you show, by or a meticulous accountant. In a sense,
Beck, author of Extreme Program- means of a format, be it a slide, chart, it will allow us to go back to the roots of

always work as unifiers ming. “I have been reluctant to try

ChatGPT,” he tweeted, “today I got over
that reluctance. Now I understand why I
was reluctant. The value of 90% of my
spreadsheet, code or a summary. And
the third is when you need to create, or
perform a creative task, like an essay, a
recipe, code or a sales pitch.
work, where we can spend our working
hours far more productively doing
either high cognitive or intense manual
jobs, leaving mundane and repetitive
skills just dropped to $0. The leverage The show part is probably the most tasks to AI tools.
of the remaining 10% went up 1000x. I tiresome and repetitive for a worker. There is a flip side, though, to dele-
India’s new Parliament building to be inaugurated this Sunday has seen a political battle need to recalibrate.” I got reminded of Good visualization and presentation are gating basic jobs to AI. There are a lot of
this as I was flipping through a new important, but time consuming and human workers who do these jobs to
erupt. Dissonance has arisen over Indian symbols. No matter what, the truth must prevail report (bit.ly/3BGbIby) on AI and the often tedious. This is where Generative earn a living—whether they are cus-
future of work by Microsoft WorkLab. It AI is coming into its own, with innova- tomer service representatives, basic
had some interesting revelations: More tions like Microsoft Copilot building programmers or payroll accountants.
than half the typical workday of a corpo- slides, charts and documents on the fly, As Generative AI sweeps across our

I
ndia is big on symbols—if not their study, a
field called semiotics, then the practice of
deploying them. Take the political standoff
over this Sunday’s inauguration of a new
Parliament building. There has been an
exchange of barbs across the aisle. In a joint
statement, 19 opposition parties called the
Centre’s decision to have it opened by Prime
Minister Narendra Modi instead of President
Droupadi Murmu “not only a grave insult but a
direct assault on our democracy….” They said
they will not attend the ceremony for flouting
the letter and spirit of our Constitution, whose
Article 79 states that Parliament comprises the
President and both Houses. In response, the
ruling Bharatiya Janata Party (BJP) and its allies
termed their boycott “a blatant affront to the
democratic ethos and Constitutional values of
our great nation.” It is a battle over symbolism
like none other. As if it wasn’t enough that a
saffron tinge was widely seen in the occasion’s
calendar mark, since 28 May is also Hindutva
ideologue V.D. Savarkar’s birth anniversary, a
ceremonial redux from 1947 looks set to amp
national symbol of Amrit Kaal, an era that will rate employee was devoted to commu- and even converting content from one organizations, these jobs are at risk;
witness the new India taking its rightful place nication like emails, meetings, chats, format, say a document, to another, like cases in point are Vodafone, which
etc. The remaining 43% was for actual a slide deck. As we have realized, wants to cut jobs by nearly half and use
in the world,” said home minister Amit Shah by creative tasks, and even a lot of that was AI instead, or IBM halting some recruit-
way of elaboration, referring to the years ahead also about creating spreadsheets, docu- ment for the same reason. This is where
till 2047, a period that may see our membership ments in various formats or slides to we humans will have to step up and
of Parliament enlarged and constituencies present at meetings. No wonder that QUICK READ learn how to work with AI and develop
redrawn to reflect demographic shifts, which more than two-thirds of workers com- an “AI aptitude” as the WorkLab report
plained they did not have uninter- We need to view Generative AI calls it. We have been good at working
was the basis for why the Modi administration rupted focused time during their work- as a new tool for routine and with revolutionary technologies. We
opted for a whole new construction project. day. I tend to empathize with this. I was repetitive tasks that will enable learnt how to use tools like fire, the per-
What lends itself to relatively easy semiotic a corporate citizen for more than two us to focus our efforts on the sonal computer and internet to make
analysis is what it all adds up to; and it may decades and have been a ‘solopreneur’ core work we do and thereby our work better and create new jobs for
explain unease among BJP opponents. In its for the last few years. While there are become more productive. humans. We will have to do the same
infinite struggles being an entrepre- with this powerful technology and use it
gestalt, it signals and sustains the novelty of neur, my productivity has ratcheted up Elementary jobs may indeed to lift ourselves away from the mundane
India under the ‘party with a difference’, but several times unencumbered by count- be at risk but AI’s impact can and the monotonous. It will not be AI
within the framework that existed before the less meetings discussing the same old be mitigated by adapting to which takes our jobs, but other human
BJP’s rise. Although few doubt a shift in India’s issues, with similar information being this potentially transformative beings using AI could, and we need to
direction, even visible in emblematic moves, presented to different people in differ- technology just as we did in choose which of the two we are. We
ent formats in a work routine that leaves the past as new tools emerged. need to recalibrate.
clever calibration helps the BJP counter critics
and rouse its support base simultaneously.
What’s much less obvious is how each symbol
works as a cue (or set of cues). The regime’s
clever use of motifs is captured well by the
Ashokan Lion Capital atop the building to be
opened this weekend. It’s a gigantic replica of www.livemint.com
New Delhi, Mumbai, Bangalore, Kolkata, Chennai, Ahmedabad, Hyderabad, Chandigarh*, Pune* Monday, May 27, 2013 Vol.7 No.125 `3.00 in Delhi­NCR/`4.00 outside Delhi­NCR 24 PAGES

up the semiotic intrigue in New Delhi’s air. Emperor Ashoka’s majestic sculpture that gave VIEWS: A right time for
inflation­indexed bonds? >23
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of treason >4
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development and growth

NAXALITE THREAT SPOT-FIXING ROW QUICK EDIT

Singh calls for Srinivasan says he won’t resign, Mayhem in

in Tamil and drawn from a Chola tradition of has etched itself on our minds as a sovereign firm action
sets up panel to probe son-in-law
PTI
B Y M ANISH B ASU &
Chhattisgarh
T he bloodbath in
Darbha valley in the
Bastar region of

and to make India

G OURI S HAH Chhattisgarh on Saturday
························· is another reminder of
KOLKATA / MUMBAI

power transfer that was revived in 1947 for the symbol. Except that the form of this particular
India’s losing fight against

after ambush
Toll from Maoist attack
in Chhattisgarh rises to
28; PM says incident
N
sault. Karma founded a local
. Srinivasan, president of
Board of Control for Cricket
in India (BCCI), rejected de-
mands for his resignation and
said a three-member panel will
probe charges of spot-fixing
terrorism of the ultra-Left
variety.
It is not the number of
those killed but the
political impact of the
massacre that should wake
militia, the Salwa Judum, to
combat the Maoist rebels. The
against his son-in-law Gurunath
Meiyappan, and the Chennai Su-
up India’s cosy and
befuddled internal security

symbolic handover of authority to our first one differs from the usual. Its lions bear a dis- self-reliant, five things are of
anti-rebel militia had to be per Kings (CSK) and Rajasthan establishment.
should spur battle reined in after it was accused Royals teams in the Indian Pre- Chief among those killed
of atrocities against tribals. mier League (IPL). was Mahendra Karma, a
against extremists Former Union minister Vi- “I am not an accused and have leader of the Congress
dya Charan Shukla was badly done nothing wrong for which I party who was
AP & AFP injured and had been airlifted will allow myself to be threat- instrumental in leading the
························· to New Delhi in “serious” con- ened to resign,” Srinivasan told state in its fight against the
NEW DELHI / RAIPUR dition, said Congress vice- reporters after meetings with Maoists in this part of the

I ndia’s leaders reacted with president Rahul Gandhi, who board officials, including IPL country. In spite of

Prime Minister Jawaharlal Nehru by the British cernible expression. With their hint of a snarl,
outrage on Sunday to an flew to Raipur late on Satur- chairman Rajeev Shukla and belonging to a different
audacious attack by about day. The 84-year-old Shukla, a BCCI vice-president Arun Jait- party, the state government

200 suspected Maoist insur-
gents, who set off a roadside
bomb and opened fire on a
convoy carrying ruling Con-
gress party leaders in Chhattis-
garh, killing 28 people and
wounding 24 others.
high importance—intent,
veteran Congress parliamen- ley. No one from the board had valued his services. Reports
tarian, was being treated by a asked him to resign, Srinivasan suggest he was singled out,
team of doctors at a private said. beaten, and then killed at
hospital on the outskirts of the The BCCI chief has been un- point blank range.
national capital. der pressure to quit after his son- Confronting Maoists not
The Congress party is the in-law Meiyappan, chief execu- only requires security
main opposition party in tive officer of CSK, was arrested personnel equipped with

Empire, this is a staff with Nandi the Sacred Bull they even seem somewhat aggressive. While
Prime Minister Manmohan
Singh, accompanied by party
president Sonia Gandhi, visit-
ed the injured in a hospital in
Raipur, Chhattisgarh’s capital,
Chhattisgarh. It has stepped
up political activities, trying to
win the support of tribals,
ahead of state elections sched-
uled to be held by December.
on Friday for his alleged involve- good weapons, but also
ment in betting on IPL matches. needs political leaders who
Srinivasan is also the managing can stand up to the
director of India Cements Ltd, ideologues and foot
Final drama: Two­time champions Chennai Super Kings were 84 for 8 which owns the Chennai team. soldiers of a defunct

and said the government will
take firm action against the
perpetrators.
Singh, who has described
K.P.S. Gill, a former police
chief of Punjab, said the attack
was “a very horrifying inci-
dent”. However, Gill said the
inclusion, investment,
while chasing a target of 149 runs set by Mumbai Indians in the final of The commission will include two ideology. Karma’s death
IPL6 on Sunday, at the time of going to press. Mumbai, which initially members from IPL’s disciplinary means one less leader of
faltered while batting first, were rescued by a 32­ball 60 by Kieron that kind.
Pollard (above).For updates go to www.livemint.com TURN TO PAGE 3®

as its insignia. Given to Nehru just before free- the sculpture’s recent unveiling took pacifists
the Maoists as the country’s
most serious internal security
threat, said the ambush should
spur the battle against extrem-
ists. “We have to be more de-
termined in fighting Naxal ex-
tremism,” he said after visiting
state government was incapa-
ble of devising a strategy to
tackle the Maoist threat. “They
don’t have the political will
and bureaucratic and police
set-up to prevent such at-
The story
tacks,” he said.
behind the

the wounded in hospital on
Sunday.
dom at midnight, as reported, this sceptre was aback, it found plenty of applause too. And no
“We are devastated,” said
Gandhi, who denounced what
she called a “dastardly attack”
on the country’s democratic
values.
The convoy was attacked on
Saturday in a dense forest
about 345km south of Raipur,
as the Congress members were
infrastructure and
Rural development minister
Jairam Ramesh, a strong votary
bond rally
of development accompanying
political activity in Maoist-af-
fected areas, described the as- BANKER’S TRUST
sault as an attack on democra-
cy. TAMAL BANDYOPADHYAY
The attack was a “grievous”
blow to the party in the state,
he told reporters in New Delhi.
“This proves that Naxals (Mao-
B ond dealers in Mumbai,
India’s financial capital,
have started enjoying their

retrieved from obscurity and will be conse- matter which angle is picked for a view, it’s still
returning from a party rally.
Four state party leaders and
five police officers were among
those killed. Other victims
were party supporters.
State Congress chief Nand
Kumar Patel, his son Dinesh
and former state home minis-
ter Mahendra Karma were
ists) have no respect for de-
mocracy,” he said. “It is aam
sabha (public meeting) that
gives oxygen to democracy. If
political parties cannot hold
aam sabhas, there can’t be any
democracy.”
The rebels, known as Naxal-
ites, have been fighting the Un-
innovation.
Friday evenings once again.
Despite a record-high `5.79
trillion gross government
borrowing programme for the
current fiscal, bond yields are
dropping and wholesale price
inflation is declining every
month to levels below what
analysts expect. Since January,

crated by religious rituals and handed to Modi the same crest we grew up with. At first glance,
among those killed in the as- ion government for more than
four decades, demanding land
and jobs for tenant farmers
and the poor. They take their
name from the West Bengal
village of Naxalbari, where the
movement began in 1967. They
are now present in 20 of In-
dia’s 28 states and have thou-
the yield on the benchmark
10-year government bond has
slipped by 65 basis points (bps).
A basis point is one-hundredth
of a percentage point.
In fact, the southward
movement of bond yields, which
move in the opposite direction
to prices, started in December

for installation in our all-new capitol complex to at least. As for what thought the sight of India’s
sands of fighters, according to when they dropped about 14
the home ministry. bps. Bond traders at bank
Maoist rebels carried out treasury departments and

two major attacks in Chhattis-
garh in 2010. They ambushed a
paramilitary patrol in April
that year, killing 76 troops in
their worst attack ever. A
N A R E N D R A MOD I
primary dealerships that buy
and sell government bonds had
a good Christmas, but they did
not expect the party to last long.
They have been pleasantly

signify ‘fair and equitable governance’. “It will Lion Capital pops into our heads, ‘Satyamev
month later, they triggered a
land mine under a bus carrying
civilians and police, killing 31.
Mint’s Elizabeth Roche in
Mint is also available for R7 with New Delhi contributed to this
Hindustan Times in Delhi-NCR only story.
surprised by how things are
turning out. With bond prices
rising, they are making money
with both hands, getting hefty
TURN TO PAGE 2®

shine near the Lok Sabha Speaker’s podium as a Jayate’ mustn’t lose its national share.

GUEST VIEW

We need just one big cluster to become an electronics hub

attract investment from Samsung by offer-
RAMEsh MAnGAlEsWARAn & ing a corporate tax holiday for five years. It
RAhul AhluWAlIA also earmarked a northern part of Vietnam
as its primary electronics manufacturing
hub and assured support in terms of ease of
setting up and expanding operations for
manufacturers in this region. As a result, just
industry there. This allowed China to attract mies of scale have meant that industrial should think of clusters not in terms of small
early investors from Hong Kong and Taiwan development typically happens in geo- industrial parks, but large regions (mini-
(in particular, Foxconn). By 2001, Foxconn graphically concentrated areas. Even in mum 250sqkm) where they will prioritize
had low value but large-scale contract man- India, Tirupur is a famously successful gar- responsiveness to industry’s regulatory and
ufacturing operations in Shenzhen from ments cluster, just as Ludhiana is known for infrastructural needs. The focus should be
several companies like Apple, Intel and sports goods and Kanpur for leather. on finding a large anchor investor and easing
Sony, to name a few. Over time, the indus- The main difference is that most Indian the path for any related unit that wants to

are, respectively, governing
council chairman and founding
director of the Foundation for
Economic Development
M
obile phone exports from India
went from about $5 billion in
2021-22 to around $10 billion last
year. This growth was driven primarily by
Apple, which accounted for half the mobile
phone exports from India in 2022-23. Elec-
tronics exports overall rose to about $20 bil-
lion from $13 billion. As good as this news is,
benchmarking against other countries
shows how much further we can go. In 2022,
Vietnam, a country about as big as Madhya
Pradesh, exported $114 billion in electronics.
China exported close to $900 billion. What
can take our green shoots in electronics
exports and turn them into a flourishing eco-
system? The answer is deceptively simple
but critically important and highly time sen-
sitive: prioritize building one large export
cluster around one big anchor investor.
To substantiate, let us look at two recent
stories of electronics-export success. In
2008, Vietnam had virtually no electronics
industry to speak of. It pulled out all stops to
the 800sqkm Bac Ninh province, where
Samsung first set operations up, has 11 Sam-
sung factories. This company alone exports
goods worth $65 billion from Vietnam and
directly employs about 110,000 people.
Vietnam also positioned the northern region
around that province as a hub for electronics
manufacturers looking to diversify away
from China. This region accounts for almost
the country’s entire $114 billion worth of
electronics exports. Starting with low-value
items on a large scale, Vietnam has now built
a base on which it can further ascend the
value chain. Several large investments in the
fields of components and semiconductors
have recently been made there.
Similarly, in the 1980s, when China had
just begun its economic reforms, it set up
four Special Economic Zones (SEZs), sized
about 500sqkm. Extreme flexibility was
allowed when it came to legal frameworks
and the ease of doing business in these
zones. The primary goal was to develop
trial and electronics ecosystem that sprang clusters came up organically, while China, come up in that region. In this way, initial
up led to several home-grown electronics Vietnam and other East Asian countries have scale may get built for low-value, high-vol-
giants like Huawei and BYD. The Shenzhen been able to create competitive clusters. We ume products, but that scale will quickly
region alone recorded over $250 billion in have been unable to replicate this model at develop an ecosystem around it that goes up
exports in 2018, and Foxconn is estimated to scale, mainly because we do not prioritize the value chain and delivers higher-skill
employ over 400,000 people on its two export-competitiveness. As a result, our jobs, as the stories of Vietnam, China and our
Shenzhen campuses. attempts at creating own automobile industry attest.
Other SEZs in China industrial parks have We have a golden opportunity to swing
focused on different QUICK READ been scattered all over things around. Companies are looking to
industries and have had the country, in sizes that diversify away from China, given the current
largely similar results. Our mobile phone exports have average 0.5sqkm, with geopolitical situation, but this window will
The history of manu- doubled in a year but this pales in minimal or no infrastruc- not last long and we have many competitors.
facturing is replete with comparison with what countries ture or regulatory easing. India can be a splendid alternative if we set
geographical clusters, like Vietnam have pulled off in Industries in these parks ourselves the target of reaching $100 billion
right from the start of the a short span of time thanks have to deal with the in exports from just one large electronics
Industrial Revolution. to closely focused policies. same challenges of red cluster, and line up all the ducks needed to
Manchester emerged as a tape, customs clearances deliver on it.
loom city, while Detroit Instead of scattered zones, we and electricity and labour We already know Apple wants to diversify
became ‘motown’ and need one large manufacturing problems that the rest of away from China. Like Vietnam did with
Silicon Valley sprang up cluster anchored by one mega our industry does. Samsung, we too must do whatever it takes
around Stanford Univer- investor so that we start with low Governments, espe- to build a competitive cluster to take elec-
sity as a digital hub. Net- value output and then ascend cially of states, need to tronics exports from India from $20 billion
work effects and econo- the value chain as exports grow. lead the way on this. They to $100 billion in five years.
LIVEMINT.COM VIEWS Friday, 26 May 2023
MuMbai 15

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

A decade of reformist action has Social media platforms should

welcome studies on kid safety
catalysed the emergence of India It is in their interest to pay the US surgeon general close attention

Seven key aspects of the Modi government’s economic strategy have set the stage for our long-term ambitions to be achieved

PTI

LISA JARVIS
is a Bloomberg Opinion columnist covering
biotech, health care and the pharmaceutical
industry.
CHANDRAJIT BANERJEE
is director general, Confederation of Indian
Industry.

T
he US Surgeon General Vivek Mur-

T
he ninth anniversary of India’s present
government led by Prime Minister
Narendra Modi is an opportune
moment to assess its achievements so
far, especially as the next 25 years lead
up to the 100th anniversary of India’s
independence. The experience would also serve as
a guidepost for the government to script a blue-
print and draw a policy road map for India’s future,
an exercise that would help establish India as a
global force to reckon with as it aims to become a
developed economy by 2047.
The present government has been working
towards changing perceptions about India ever
since it assumed office. Since its decisive mandate
of 2014, the Modi government has worked assidu-
ously to create a strong India, ready to take on the
world on the strength of its robust fundamentals.
Hence, even as the global economy faces head-
winds, India today continues to hold its own,
having emerged as the world’s fastest growing
major economy for three consecutive years.
Further, India’s G20 Presidency this year pro-
vides an opportunity to showcase Indian leader-
ship in tackling various challenges, including those
of reviving global growth, undertaking climate
action, social empowerment and healthcare,
among others. The global spotlight on India has
essentially been enabled by the many bold and
extraordinary steps taken by the government to
ensure that the country gets its rightful place at the
global high table.
Indeed, the government as over the last nine
years brought in multi-dimensional reforms and
taken many initiatives, in partnership with major
stakeholders, in diverse areas to create the right
enablers to bolster competitiveness, promote
inclusion and propel growth. The impetus given by
the government to ramp up public investment in
infrastructure, encourage manufacturing, pro-
mote investor-friendly policies, support SMEs,
among others, will go a long way to make India
competitive in the global economy. The credo of
development through good governance, with a
focus on execution, has struck the right chord and
its results have been fruitful.
Further, the work done by the government in
the direction of fiscal consolidation, better subsidy
targeting, uplifting agriculture, financial inclusion
and effecting social transformation would help
enhance efficiency and take the country onto a
path of inclusive and sustainable growth.
From the perspective of Indian industry, seven
high points of the government’s economic strategy
deserve special mention.
First, the government’s relentless drive to
revitalize infrastructure by taking steps to improve
last-mile connectivity, reducing logistics costs,
expanding roads and rail network, ports and air-
ports, etc, is noteworthy. The creation of a National
Infrastructure Pipeline, the 33% capex hike in the
thy has issued a warning that social
media could be harming our kids. His
social media advisory is a welcome road US Surgeon General Vivek Murthy has
map for what everyone—policymakers, raised an important flag BLOOMBERG
tech companies, parents, kids and
researchers—should be doing to better technology—the latest chapter in a long
understand the impact of platforms like history of panicking over how kids’ brains
TikTok, Instagram and Snapchat on the and behaviour will be affected by shifting
developing brains of adolescents. There cultural norms. Consider, for example, ear-
are yawning gaps in our knowledge of lier warnings about violence on TV or in
social media’s effects at this critical point in video games.
development. Many of Murthy’s recom- More than once when contemplating my
mendations centred on filling those gaps. concerns over social media and kids, I’ve
And while Murthy also offers advice for paused to ask myself if I’m having a Tipper
parents, educators and kids themselves, his Gore moment. She famously stoked some
most urgent recommendations are ones hysteria over the dangers of exposing kids
companies must take the lead on. to explicit music or movies. This was a
He’d like to see businesses adding scien- campaign kicked off after she bought her
tific advisory boards to guide safe product 11-year-old daughter Prince’s Purple Rain,
Budget for 2023-24 and the Gati Shakti scheme are zation, technology and innovation as the centre- design, reacting swiftly if evidence of harm which this opinion writer will note is one of
among the Centre’s most recent initiatives to piece of a grand vision to foster the emergence of a emerges, and doing more to enforce age the best albums ever made and has been
strengthen infrastructure, boost market competi- digitally empowered society and knowledge-based bars. Policymakers, who have been fum- played many times for her own 11-year-old
tiveness and fortify growth. Similarly, the asset mon- economy, with the Digital India initiative having bling to put the social media genie back in daughter.
etization programme and NaBFID would greatly vaulted our prospects in this realm. the bottle via clunky bans, should pursue But unlike a single song or scene in a
help to unlock capital for infrastructure financing. Sixth, the government’s focus on sustainability such realistic recommendations for the movie, social media permeates a teen’s day.
Second, through its Atmanirbhar Bharat pro- and green growth is now a key part of its overall design and use of these platforms. Nearly every teenager in the US — 95% — is
gramme of self-reliance and production linked developmental strategy. India is among the first One recommendation that resonated on social media, and the report notes that
incentive scheme, the government is spearheading few countries to have walked the talk on its climate was Murthy’s call for transparency. He a third of teenagers report using it “almost
a manufacturing transformation. Also, its accent commitments and has set an ambitious goal of net- wants technology companies to “share data constantly.” Meanwhile, some 40% of kids
on improving the ease of doing business and facili- zero carbon emissions by 2070. Besides, India is relevant to the health impact of their plat- between the ages of 8 and 12 are users. And
tating corporate exits, plus its introduction of GST the third largest producer of renewable energy, forms with independent researchers and even the ones that aren’t active partici-
and reduction in corporate tax, with the potential to emerge as the public in a manner that is timely, suffi- pants are surely passive ones—parents like
together with skill development, the global hub for green hydro- ciently details, and protects privacy.” Law- me who have held the line on social media
FDI reforms, etc, will go a long QUICK READ gen. makers should ensure that they do. and phones know that even when their
way to make India a hub of man- Seventh, the administration’s As Mitch Prinstein, a psychologist and child doesn’t have their own TikTok
ufacturing and exports. The Narendra Modi government deep commitment to social neuroscientist who studies adolescents’ account, they’re certainly seeing it on the
Third, India has among the has initiated many multifaceted empowerment has seen schemes social interactions at the University of playground or after school.
world’s most open foreign reforms for business, economic such as Jan Dhan Yojana, Ujjwala North Carolina, recently pointed out to me, That constant barrage of content might
investment regimes, having inclusion and other goals but we Yojana, Kisan Samman Nidhi, “Companies are assertively hiring psycho- include being exposed to material that
opened sectors such as retail, must sustain this pace of change Ayushman Bharat Yojana, logical scientists from our own programs some parents might find problematic—
civil aviation, defence equip- to fulfil the aspirations of people. Gareeb Kalyan Yojana, Swachh and labs, but we don’t know what they’re like videos that glamorize suicide or eating
ment, space, insurance, nuclear Bharat Yojana, Awas Yojana, Jal doing and what information they have.” disorders. And perhaps more profoundly,
energy and others to interna- Infrastructure development, Jivan Mission, etc, all of which Given the massive amount of data col- it is also potentially changing the way they
tional players in a big way. for example, must stay in focus, are exemplary initiatives for the lected from companies and their intense connect with other humans. The surgeon
Hence, India is emerging as a as must factor-market reforms uplift of the needy. Besides, the focus on the influence of their algorithms, general’s report notes that one of the criti-
preferred FDI destination as and the ease of doing business government drew accolades for it wouldn’t be surprising if they already cal unanswered questions is how interact-
global businesses seek to de-risk for our economy’s emergence its bulk vaccine production and were experimenting with and studying ing online versus in person affects kids’
their operations. India has also to lift the quality of people’s lives. global outreach in the midst of how social media is being used and is mental health, and in particular, their feel-
signed economic cooperation the covid pandemic. affecting specific groups of kids. Academic ings of connectedness or isolation.
and trade agreements with countries such as the However, the country’s expanding aspirations researchers like Prinstein would get so In the end, the advisory is raising a red
UAE and Australia, and negotiations are underway call for more such actions. Infrastructure develop- much out of any data they are collecting. flag not about what we know to be danger-
with the UK, EU and Canada, among others, to ment must continue to get priority, even as we For example, are they asking what happens ous, but about all that we don’t know—and
expand global ties. make a consistent improvement in the ease of when kids see more of certain kinds of as a society, have a right to know—about
Fourth, the government’s pioneering Start-Up doing business, reduce the cost of doing business posts or see posts in a different order? Are social media’s effect on adolescent devel-
India initiative, among the most aspirational through factor market reforms, lower the costs of they experimenting with what happens opment. It’s a call for good data. What’s the
schemes, has catalysed a startup culture and built a energy and capital and focus resources on health, when kids see ‘likes’ more or less often? All harm in that?
strong and inclusive ecosystem for entrepreneur- education and skills, among others. of that could tell us a lot about kids’ reac- Without reliable information, parents
ship in the country. Today, India has the world’s India is at a tipping point in history. With our tions to social media and overall well-being and legislators will be left wondering why
third-largest startup ecosystem, with registered broad focus on growth while assuring citizens a when using it, Prinstein says. social media companies, if confident their
startups crossing the milestone of 100,000. commensurate improvement in the quality of their Critics might see Murthy’s warning as products aren’t harmful, wouldn’t simply
Fifth, the Prime Minister has conceived of digiti- lives, we can look forward to a bright future. merely stirring up moral panic over new share the proof. ©BLOOMBERG

MY VIEW | PEN DRIVE

Examine the Tibetan struggle through a feminist lens

when security is tightened for a visit by a
ShAroN SuSAN KoShy Chinese diplomat or statesperson. The con-
sistently non-violent nature of the resist-
ance taken up by the Tibetan exile commu-
nity in South Asia has implications that go
beyond the confines of international rela-
tration is an elected government in exile least sensitive to Tibetan preferences. Their worsen too. Taking up another country’s
with political authority ever since the Dalai ultra-nationalist narrative which promotes citizenship has often been discouraged as an
Lama renounced his political powers in Chinese languages and dismisses Tibetan act of abandoning the cause, a charge which
2011. The spiritual leader is a rallying point modes of expression and autonomy, plus carries moral implications in such a tight-
and unifying factor for the community. He resource exploitation, are well documented. knit exile group.
is at the forefront of the resistance move- Re-education centres aim to suffocate that Third, tensions between Tibetans and

is a visiting fellow at
the Nepal Institute for
International Cooperation
and Engagement,
Kathmandu
W
alking down the Tibetan market
at Swayambhu, Nepal, an inexpli-
cable but familiar feeling struck
me. I had struggled with the question of
‘positionality’ as a researcher, especially
while studying the community as an out-
sider. Often, I was baffled by how the narrow
definitions of mainstream international
relations (IR) tend to neglect long-drawn
non-violent resistance movements, such as
the Tibetan movement. Feminist perspec-
tives on women, peace and security (WPS)
take a differential approach to defining con-
flict and war. Feminist IR scholarship chal-
lenges the notion of conflict as comprising
only immediate and overtly aggressive
forms of conflict and views long-term, con-
sistent and passive resistance to oppression
as part of the larger WPS domain.
In this context, the Tibetan resistance to
Chinese occupation is a long-term conflict
that captures public imagination every now
and then in India and Nepal, especially
tions, reflecting the need to revitalize and
re-operationalize terms such as ‘conflict’,
‘resistance’ and ‘oppression’.
One of the most misunderstood and mis-
represented refugee communities in the
world, the interpretational challenges that
Tibetans in exile face can be said to be an
extrapolation of a colonial imagination from
two centuries ago. Such representations are
politicized endeavours, as evident in histo-
ry-writing exercises to define or dismantle
Tibetanness or Tibetan nationhood. Note
how Tibetans reinforce their nationhood
through their own writing of history vis-a-
vis Chinese attempts at oversimplifying that
complex history to suit a colonization
agenda. The effort of Tibetans both in exile
and Tibet to control the narrative of their
history is in itself a form of resistance, one
that engages with a conscious retelling of
the story from the subject’s perspective.
Headquartered in Dharamshala, Hima-
chal Pradesh, the Central Tibetan Adminis-
ment, advocating a middle path of non-vio- space further. Perhaps a much more brutal host communities pose challenges to peace-
lent resistance to Chinese occupation of version of it is being practised in Xinjiang ful co-existence in their adoptive countries.
Tibet. Besides, keeping alive Tibetan ways among the region’s Uighur Muslims. Rehabilitation and land resettlement in the
of living and cultural traditions can be Another challenge comes from within the 1960s and 70s were aimed at providing
viewed through a feminist lens as the best exilic community. Many second and third- Tibetan refugees with economic means of
possible non-violent means of resistance in generation Tibetan refugees were born out- survival and livelihood options. But inter-
the Tibetan quest for an side Tibet and living in community friction can be traced to layered
autonomous Greater host countries culturally reasons that include economic envy or even
Tibet comprising Kham, QUICK READ distinct from their own marriages across community lines, some of
Amdo and U-Tsang. can cause a dilemma of which are seen to translate into resentment
However, given the Keeping Tibetan ways of living belongingness, compli- and non-cooperation, impacting the ideal of
very nature of the move- and cultural traditions alive cated by the limbo of peaceful co-existence. As the Tibetan resist-
ment and exilic life, it while retaining autonomy over statelessness. There is ance unpacks real questions about what
has faced several criti- the historical narrative is a useful also an internal struggle constitutes a long-term conflict, it is impor-
cisms, mainly from three non-violent means of resistance over what constitutes tant to recognize the complex nature of its
quarters: the hegemonic from a feminist perspective. Tibetan identity for challenges and origin. This could produce
state of China, from those who choose to a newfound interest and enthusiasm among
within the community, As the struggle of Tibetans marry outside the com- international agencies and within academia
and from their host unpacks real questions about munity. As global sup- and think-tanks to take up the issue of sus-
communities. what constitutes a long-term port for their cause dwin- tained resistance movements as part of
The Chinese Commu- conflict, it is important to dles and the economic security and conflict studies, thus giving the
nist Party and state-con- recognize the complex nature and political clout of Tibetan resistance and similar struggles
trolled media are the of its challenges and origin. China rises, this will across the globe their due attention.
16 Friday, 26 May 2023
MuMbai
A car built for adventure
inside and outside the city
Toyota’s Hilux is a silent
and smooth vehicle,
with a commanding
stance, made for
comfortable long drives
Rishad Saam Mehta
n February 1968, The Beatles arrived in
I Rishikesh, and the next month, the first
generation of the Toyota Hilux was
launched. Now in its eighth generation,
the Hilux was launched in India in
2022, and earlier this year, Toyota held the
Hilux media experience drive, coincidently, in
Rishikesh.
In the 55 years between The Beatles’ and my
arrival, respectively, in Rishikesh, the Hilux has
earned quite the reputation of resilience and
reliability. This is a car that can be shot at,
dunked into water, tumbled down a rocky hill-
side and will still keep going. It is the very epit-
ome of keep calm and carry on. Since I abso-
lutely love road trips in the high Himalayan
regions of Zanskar and Ladakh, I was looking
forward to getting to grips with it.
The Hilux is definitely a handsome car, espe-
cially when dressed in red. Its chrome accents
complement its looks and it has a commanding
stance. But finding parking for it, especially dur-
ing rush hour in a city, might be as intimidating
as a well built 6ft person trying to find a comfort-
able seat in a low-cost airline. But when you do
find parking, the front and rear sensors make it
easy to squeeze in and out of that parking space.
The first thing I did when I was assigned my
car for the media drive was to jump into the
cabin and connect my phone. I was going to use
this car for a long and, at times, arduous road
trip and it was important that Apple CarPlay or
Android Auto worked seamlessly and my music
sounded good. The Hilux scored top marks in
both these areas, with the haptic touchscreen
being very responsive and the music sounding
deep and clear.
The dual zone air-conditioning is good
enough to quickly cool the cab down even when
it was 34 degrees Celsius outside and the elec-
tric seat controls made it easy for me to find my
optimal driving position.
When we started from Rishikesh towards
Rajaji National Park, the Hilux was easy to
manoeuvre through the crowded streets of the
city notwithstanding its 5325mm length and
1855mm width. I found the steering precise.
Along the route, we hit a stretch of straight and
BUSINESS OF LIFE INDULGE
The Toyota Hilux is
5325mm long, and
1855mm wide
smooth road alongside a canal and there was a in the park to showcase the off-roading capabili- other is in the air. When I hit the first ditch and
perceptible change in pace when I switched to ties of the Hilux. While the 700mm water wad- my front right wheel went into it, the rear left
the PWR (power) mode. The automatic gearbox ing and the steep incline and decline were wheel was in the air, but the car dug itself out
held on to gears a tad bit longer, going into the obstacles that you would expect the Hilux to do with the traction on the rear right wheel. At the
realm of higher rpm that led to stronger acceler- without breaking a sweat, what really impressed next ditch, the rear left wheel went down, send-
ation. The Hilux sits on the same chassis as the were the obstacles that showcased the car’s ing the front right wheel airborne, but again
Toyota Fortuner and the Innova Crysta, but the angle of lean and wheel articulation. thanks to the diff locks the car pulled itself out.
members of this chassis have been beefed up for The negative incline obstacle tested the car’s For passengers, the rear seats are comfortable
the Hilux to make it tougher. centre of gravity by putting the left side of the enough with AC vents at the rear. The backrests
The power comes from a 2.8-litre turbo diesel car higher than the right side. This is the kind of are a tad upright, though, and it is certainly
mill that also powers situation you might bumpier in the rear seats than the front ones
the Fortuner. This come across when a due to the leaf springs rear suspension setup.
engine doles out 500 Finding parking for Hilux, boulder is blocking The huge cargo area at the rear is great to trans-
NM of torque from as especially during rush hour in your path on a narrow port stuff like cupboards and refrigerators from
low as 1600 rpm and a mountain road and the city to your farmhouse.
substantial 208 horse- the city, might be a task, you would have to The Hilux is silent and smooth but certainly
power. given its big frame angle one side of the not subtle. It is a car ready for an adventure even
Soon, the smooth car on the mountain- in its most basic form. This is the kind of car
tarmac ended as we side and crawl past you’d buy to go on an adventure and also the
drove into the park and the road gave way to the boulder. The angle of lean the Hilux can kind of car that would make an adventurer out
loose gravel and rocky sections. Yet the Hilux manage by virtue of its low centre of gravity is 35 of you after you’ve bought it.
didn’t lose its composure. It soaked up irregular- degrees and while the tilt at this angle of lean felt The prices for the three Toyota Hilux variants
ities with aplomb, only bouncing a bit over the quite ominous inside the car, the Hilux took the are: Toyota Hilux Standard 4x4 MT (manual
really broken bits of road. The slight slides over obstacle without a jitter. transmission): ₹30.40 lakh, Toyota Hilux High
loose gravel were done away with by switching The next obstacle was the Mogul: two diago- 4x4 MT: ₹37.15 lakh; and Toyota Hilux High 4x4
the gearbox knob from 2W (2-wheel drive) to nally opposed ditches to demonstrate the tenac- AT (Automatic Transmission): ₹37.90 lakh.
4WH (4-wheel drive high). This sent power to all ity of the car’s differential locks. What the differ-
wheels instead of just the rear wheels. ential locks do is ensure traction on the wheel For more such stories, visit lifestyle,live-
Toyota India had prepared an obstacle course that is in contact with the terrain even if the mint.com/smart-living
LIVEMINT.COM
The Ref 96 Quantieme Lune timepiece. AFP
Last Chinese
emperor’s watch
sells for $6.2M
Qing dynasty’s Aisin-Gioro Puyi held
on to the rare Patek Philippe for years
AFP
A
Patek Philippe wristwatch once owned by China’s last
emperor sold for more than $5 million on the auction
block in Hong Kong earlier this week.
The Ref 96 Quantieme Lune timepiece, which boasts a crown-
like moon phase, originally belonged to Aisin-Gioro Puyi, the
final monarch of the Chinese Qing dynasty. Crowned emperor
at the age of two in 1908, Puyi was immortalised by Bernardo Ber-
tolucci’s Oscar-winning film but left a mixed legacy.
More than 20 years later, he was installed as the puppet leader
of Japanese-occupied Manchuria, before he was captured in 1945
after the fall of Japan and taken to a Soviet prison camp.
British auction house Phillips said it had documentation that
proved that Puyi had brought the watch with him to the camp.
The timepiece was expected to fetch about $3 million but, after
about five minutes of spirited bidding, it was sold for HK$40 mil-
lion ($5.1 million). With the commission fee, the total price came
to about $6.2 million.
Thomas Perazzi, Phillips’ head of watches in Asia, said he was
“thrilled with this groundbreaking sale” because it set records.
Those records included “the highest result of any Patek Philippe
reference 96 ever sold”, according to a news release. The Ref 96
was the first complication wristwatch serially produced by Patek
Philippe, with Perazzi saying there are currently only “three
examples known” in the world.
According to the memoir of Puyi’s nephew Aisin-Gioro
Yuyuan, the watch was a “personal item” of the deposed emperor,
who passed it to his Russian interpreter Georgy Permyakov for
safe-keeping when he left the prison camp. Russell Working, a
journalist who interviewed Permyakov more than 20 years ago,
told AFP that the elderly interpreter had no idea of its value when
he pulled the timepiece from his drawer.
Write to us at businessoflife@livemint.com
 MuMBaI, New deLHi, beNGALuru, kOLkAtA, cHeNNAi, AHmedAbAd, HyderAbAd, cHANdiGArH*, PuNe* VOL. 6 NO. 124

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