NEW DELHI, MuMBAI, BENGALuRu, kOLkATA, CHENNAI, AHMEDABAD, HyDERABAD, CHANDIGARH*, puNE*, LuCkNOw* VOL. 17 NO.

273

Thursday, November 16, 2023

Think Ahead. Think Growth.

mint primer QUICK EDIT

The rupee: its Export

fall, recovery upturn?
and the RBI’s role
BY VIVEK KAUL
On 10 November, India’s currency touched an all-time low of ₹83.5
against the dollar. It has now recovered a little, closing at ₹83.1 on 15
November. Mint explains the reasons behind the rupee’s slide in the
recent past and gives a peek into the future.
From peaks to valleys
/$
73.13
1 Jan 2021
By how much has the
1 rupee depreciated?
On 3 January 2022, one dollar was
worth ₹74.3. On 15 November, it
was worth ₹83.1, implying that the
rupee has lost close to 12% against
the dollar. This fall in value hasn’t
been linear and the value of the
rupee against the dollar has moved
up and down during the period, as
is the case with any currency
which is on a largely flexible
exchange rate system. Of course,
the Reserve Bank of India (RBI)
intervenes in the foreign exchange
market—as it most probably did on
10 November and has possibly
done since then too. The
intervention is to ensure that the
value of the rupee doesn’t fall too
quickly.
AP
(in inverse scale)
83.15
15 Nov2023
Source: Bloomberg
SATISH KUMAR/MINT
Why does the RBI
2 intervene in forex?
A fall in the value of the rupee
tends to benefit exporters given
that they earn more rupees for
every dollar they earn. Of course,
like everything else in economics,
there is a flip side as well. A weaker
rupee means imports become
more expensive in rupee terms.
Now, India imports a very large
chunk of the oil that it consumes.
Data from the Petroleum Planning
and Analysis Cell suggests that
from April to August, 87.8% of the
oil consumed was imported—
against 86.5% during the same
period last year. This dynamic
forces the RBI to sell dollars and
buy rupees in order to slow down
the depreciation of the rupee.
After clocking a string of nega-
tive readings this year, Octo-
ber’s rise in India’s goods
exports has come as a breath of
fresh air. Data released on
Wednesday showed outbound
shipments rose 6.2% from a year
earlier to $33.57 billion last
month. Though still down 7%
cumulatively for April to Octo-
ber, the latest uptick raises
hopes of green shoots starting
to emerge. Of course, the global
economy is still negotiating tur-
bulence. But conditions haven’t
been as bad as feared. The US
economy, the world’s largest, is
a notable example, with data
having repeatedly thrown up
pleasant surprises, the latest
being its inflation print that
turned out more benign than
expected. A global economy in
fine fettle is crucial for overseas
demand for Indian goods to
strengthen. Meanwhile, a rise in
crude oil prices contributed sig-
nificantly to India’s imports
climbing 12.3% to $65.03 billion
last month. Their faster pace of
growth than exports meant that
India’s trade deficit widened to
$31.46 billion. This points to
continued pressure on the
rupee, which is trading near all-
time lows against the dollar.
Thankfully, the domestic econ-
omy has broadly been growing
at a reasonably fast clip.
MINT METRIC
by Bibek Debroy

In Australia, a feral pig

3 How does higher oil price in
rupee terms hurt?
A higher price of oil in rupees typically
Stole beer from campers, many a swig.
means a higher price of petrol, diesel,
Sozzled, the boar or sow
cooking gas, kerosene etc. Of course, lately Tangled with a belligerent cow,
the government has managed the price of
these retail-facing petroleum products and
Nursing a hangover, mighty big.
thus inflation. Nonetheless, someone has
to pick up the tab for this in the form of
losses or lower profits. And that is typically
done by the oil marketing companies. QUOTE OF THE DAY
...even as the world appreciates
India’s achievements and
4 Why has the rupee
been depreciating?
For the last 19 months, the US
5 How are things going
to pan out?
During the day on 10 November
successes and lauds it for its
Federal Reserve has been raising one dollar was worth ₹83.5. On 15 demonstrated resilience
interest rates in a bid to control November, during the day, it was amidst multiple crises, we are
inflation. At the same time it has worth ₹82.9. How did this happen?
been gradually withdrawing People who track the foreign very clear that we cannot
money it had printed and pumped exchange market believe the RBI afford to be an inward-
into the financial system in the might have sold dollars. Further,
aftermath of the pandemic. So, inflation in the US cooled down to leaning power.
with less money going around 3.2% in October. If US inflation
interest rates have been going up. keeps falling, the Fed is likely to
This implies that higher returns cut rates. This might mean lower
are available in the US, which returns in the US, with money NIRMALA
means greater demand for dollars likely to move to other parts of the SITHARAMAN
than other currencies like the world, including India. The FINANCE MINISTER
rupee. This largely explains the foreign exchange market might be
depreciation of the rupee. discounting this possibility.

MINT PODCASTS

DEEPFAKE THREAT CYBERATTACKS AI INSIGHTS

Artificial intelligence (AI) tools’
increasing accessibility raises the
threat of deepfakes
in audio, video, and
photos. Identifying
the actual perpe-
trators is nearly
impossible due to
cyber tools mask-
ing origin traces. Listen now to the
Mint Primer podcast to stay
informed!
This month, Apple alerted users Join Leslie and Jayanth N. Kolla on AI
about potential state-sponsored Rising as they explore the AGI debate,
cyberattacks. The delving into per-
Centre dismissed it spectives from tech
as “vague,” sparking leaders like Musk,
opposition. While Bengio, Hinton, Ng,
Apple cautioned and LeCun.
the notifications Uncover key inci-
aren’t conclusive, dents, insights, and
the threat of cyber espionage is seri- the latest AI developments, from the
ous. Dive into the conflict with Mint’s US AI Executive Order to global pol-
Shouvik Das. icy debates.
 PLAIN FACTS

The fine print of Oct

inflation, in 3 charts
BY PrAgYA SrivASTAvA

I
ndia’s retail inflation is on a downward trajectory, with the print falling to a four-month low of 4.87% in October from
the most recent high of 7.44% in July. However, there is little reason to cheer as price pressures have increased for the
first time in three months. On a month-on-month basis, the Consumer Price Index (CPI) rose 0.65%, after having
declined 0.05% in August and 1.13% in September. This shows that prices were firmer in October compared to the previous
month. More worryingly, the major sequential rise came from the food segment, the index for which rose 1.06% (including
a substantial 3.38% rise in vegetables) after two months of decline.
Despite the rise, food and vegetable inflation have moderated on a year-on-year basis due to a favourable base effect
(last year, prices rose at a faster rate in these months). However, going forward, the overall base will turn unfavourable
until December. That means, even without any change in prices, inflation will rise to 4.99% in November and 5.46%
in December, Mint calculations show. While prices tend to decline in November and December following the arrival
of kharif crops in the market, the adverse base “will somewhat restrict the downside to inflation for two months”, accord-
ing to Crisil.
The play of price pressures and base effect in the coming months could keep the monetary policy committee (MPC)
on its toes until its trajectory towards the medium-term aim of 4% becomes clear, economists said.

Inflation softened in October but price Adverse base effect could push inflation
pressures rose for first time in 3 months up for a couple of months
Month-on-month CPI inflation (in %) How inflation will move (y-o-y, in %) if there is no change in prices
3
8 Inflation Projected inflation

2.5

2
7

1.5
6.52

1
6
0.65
0.5 0.23

0 5
Jan Oct
2023 2023
-0.5
4.57
-1 4
Jan Mar
2023 2024
-1.5
Source: CMIE Source: CMIE, Mint calculations

Food Fury
WHAT IS keeping inflation still elevated is the higher prices of food items even as core inflation, which excludes food
and fuel, has been consistently easing. While spikes in vegetable prices (tomato prices in June and July) had made the
situation worse temporarily, stickiness in the prices of some other food items has become a cause of concern, especially in
the context of low production in the country due to lower-than-expected rainfall. Prices of cereal and related products
have eased but remain in double digits, and the bigger worry is the sharp rise in prices of pulses, which continue to
escalate, with their inflation touching a near three-and-a-half year high of 18.79%. Inflation for spices continues to remain
as high as 22.76%. Egg and fruit inflation both escalated to 9.3% in October, recording a sharp rise compared to previous
months. The stickiness of food items other than vegetables has not only proven a headache for the central bank’s rate-
setting panel, but also for the common public ahead of the general elections scheduled next year.
Moreover, the prices of some of the food items such as pulses, sugar and cereals are still rising. While any possible effect
from the downward recovery in tomato prices has faded now, a surge in onion prices is spelling trouble now.

Surge in onion prices is now pushing

inflation upwards
False Alarm?
Year-on-year change (in %) AFTER TOMATOES became the lead villain in inflation
8 Inflation Inflation excluding onions
going past the 7% mark earlier this year, it’s now the turn of
onions. The commodity began witnessing inflation from June,
coming off a 21-month deflationary period. In October, onion
7 prices rose 42% year-on-year. Despite a miniscule weightage
of 0.64% in the CPI basket, onions are notorious for adding
volatility to headline inflation. In December 2019, they
6 alone had lifted the headline figure by over 200 basis points
(bps). In October, onions added 27 bps and could continue to
5
4.87 be an upward force to inflation in November—but only for
some time.
4.6 “The onion price-driven surge in headline inflation is
4 unlikely to last, as similar episodes have typically lasted for 2-3
months, before reversing,” said Nomura in a report on Monday.
“The bigger challenge is the intermittent food price shocks that
3 keep pushing headline inflation higher—as is likely in
Jan 2023 Oct 2023
November—and the risk that this may influence inflation
Source: CMIE, Mint calculations
expectations,” it added.

m BRAND DASHBOARD

How Indian consumers rate various brands

This monthly dashboard captures how leading brands in new-age sectors are perceived by urban Indian consumers. The
sector in focus this month is travel and shopping. The numbers represent the "Future Consideration" metric*, i.e. the
share of respondents in a daily online poll who showed interest in using each brand in its respective category.
Quarter-on-quarter change in share (in percentage points)

E-COMMERCE
72.7 7.4 64.5 7.2 40.6 3.6 27.8 0.4 24.7 0.4

ONLINE
GROCERIES
24.9 1.5 21.6 1.1 16.5 16.3 1.3 15.9 1.0

TRAVEL
BOOKING
46.8 3.6 19.8 1.4 17.9 0.7 16.1 0.9 14.9 0.5

Respondents could select multiple options. The data is based on YouGov’s proprietary brand tracking solution, BrandIndex.
*“Future Consideration” is one of the 16 metrics captured by the BrandIndex surveys. The data relies on average with ~3,500 interviews on average
over a period of three months. The poll covered 180 cities. The survey period was August to October; the comparison is with May to July.

PEANUTS by Charles M. Schulz

 NEW DElhI, MUMBAI, BENGALURU, kOLkATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE*, LUCkNOW*
Thursday, November 16, 2023
SENSEX 65,675.94 742.07
India count in MSCI
EM index now at 131
Country’s weight rises to 16.3%; index rejig may attract $1.5 bn
Ram Sahgal
ram.sahgal@livemint.com
MUMBAI
G
lobal index provider MSCI
has included nine Indian
stocks in its MSCI Standard
Index in the latest round of rebalan-
cing, which will take India’s repre-
sentation in the emerging market
(EM) index to the highest-ever count
of 131 stocks. The rebalancing, which
will lead to minor cuts in the weights
of some big names, could result in
India attracting passive inflows of
$1.5 billion after the changes take
effect on 30 November.
“With this fresh inclusion, India’s
representation on the EM index will
reach an all-time high, marking a
significant increase, with its weight
doubling over the past three years,”
said Abhilash Pagaria, head, Nuvama
Alternative & Quantitative Research.
The inclusion of IndusInd Bank,
Suzlon Energy, Persistent Systems,
APL Apollo Tubes, Polycab India,
Tata Motors, Macrotech Develop-
ers, Paytm ( One 97 Communica-
tions) and Tata Communications
will see India’s weight in the
index rise to around 16.3%, up from
15.9% currently. Suzlon, Persistent
Systems and APL Apollo have
migrated from the Small-cap Index
to the Standard Index.
TURN TO PAGE 4
Satya Nadella, CEO, Microsoft.
Microsoft unveils
own chips to cut
reliance on rivals
Leslie D’Monte
leslie.d@livemint.com
SEATTLE, WASHINGTON
M
icrosoft Corp. on
Wednesday unveiled
two custom-designed
chips and systems at its Ignite
2023 event in Seattle, a move
that will help the Redmond-
based company reduce its
dependence on artificial intelli-
gence (AI) chips from compa-
nies such as Nvidia Corp., lever-
age the investment it has made
in OpenAI, and stave off com-
petition from chipmakers such
as Intel Corp. and AMD
(Advanced Micro Devices Inc.).
While Microsoft’s Azure
Maia AI Accelerator has been
optimized for AI- and genera-
tive AI-specific tasks, its Azure
Cobalt CPU (central processing
unit), an Arm-based processor,
will cater to general purpose
tasks on Microsoft Cloud.
Microsoft has reportedly
been working on developing an
AI chip since 2019. Code-
named Athena internally, the
AI chip was also made available
to a small group of Microsoft
and OpenAI employees for
testing, but Microsoft never
officially confirmed the devel-
opment. In a July 2021 blog,
Microsoft described ‘Project
Maia’ as a deep learning frame-
work that plays chess to explore
livemint.com
NIFTY 19,675.45
GRoWING BIGGER
MSCI has included nine Indian stocks in its MSCI Standard Index in the
latest round of rebalancing.
Stocks included in MSCI Global Standard
Index effective 30 Nov
355
Expected passive fund
289
255
inflows (in $ mn)
228
189 184
IndusInd Persistent Polycab
Bank Systems India
Suzlon APL Apollo
Energy Tubes
Global cues lift mkts 1.2%
Ram Sahgal
ram.sahgal@livemint.com
MUMBAI
I
ndian equities rallied on
Wednesday tracking gains in
global stocks, as lower-than-
expected US inflation raised
optimism about the end of the
rate hike cycle. Derivative short
covering by foreign portfolio
AFP
the relationship between
humans and AI.
For Maia, the company used
a deep reinforcement learning
neural network that was earlier
used to predict the optimal
move for a given chess board
position and retrained it to pre-
dict what a human player
would do. Microsoft had then
said: “The larger vision of Maia
is to create a more productive
relationship between humans
and AI in chess, with the hope
of applying these learnings to
other domains”.
Maia, in its current avatar,
has already been tested by Mic-
rosoft-backed OpenAI. “We
were excited when Microsoft
first shared their designs for the
Maia chip, and we’ve worked
together to refine and test it
with our models. Azure’s end-
to-end AI architecture, now
optimized down to the silicon
with Maia, paves the way for
training more capable models
and making those models
cheaper for our customers,”
Sam Altman, chief executive of
OpenAI, said.
Microsoft expects to roll out
the new chips early next year to
its data centres and will begin
by powering the company’s ser-
vices such as Microsoft Copilot
and Azure OpenAI Service.
TURN TO PAGE 4
231.9 DOLLAR ₹83.14
Nifty 50
19,700
19,650
19,600
19,599.1
167 162 159
19,550
9.15am
Nifty SmallCap 250
12,900 12,879.15
12,880
12,860
Macrotech Tata 12,840
Developers Comm
12,820
9.15am
Tata One 97
Motors Comm Source: Nuvama, Capitalmarket
SARVESH KUMAR SHARMA/MINT
investors (FPIs) also helped.
T he N a t i ona l S t oc k
Exchange’s Nifty 50 gained
1.19% to close at 19,675.45, while
the BSE’s 30-stock Sensex rose
1.14% to close at 65,675.93.
The rise in Indian markets fol-
lowed a 1.14% overnight rally in
the Dow Jones Index and a 2.37%
TURN TO PAGE 4
Govt ready with plan to keep a Recruitment sector plods
lid on food prices over next year through a gloomy quarter
Puja Das &
Gireesh Chandra Prasad
NEW DELHI
T
he Centre is prepared
with a plan to ensure
food security over the
coming year, in the wake of an
erratic monsoon that dis-
rupted the crop calendar and
boosted food prices this year.
According to Union consumer
affairs secretary Rohit Kumar
Singh, this will include sour-
cing pulses from a variety of
countries, intervening quickly
and directly in retail markets,
and possible export-import
related steps, depending on
the situation.
As part of the plan, the gov-
ernment is working to create a
model to predict food prices
that will factor in externalities
like weather and trade-related
measures, Singh said in an
interview.
The ministry of consumer
affairs, food and public distri-
bution is developing this with
The US economy’s elusive soft landing is coming into view
David Harrison
feedback@livemint.com
T
he U.S. economy is
approaching what most
economists had thought
either unlikely or impossible:
inflation returning to its pre-
pandemic norm without a
recession or even much eco-
nomic weakness, a so-called
soft landing. “What we are
expecting now is a soft land-
ing,” said Nancy Vanden Hou-
ten, lead U.S. economist at
Oxford Economics. “We expect
the economy to weaken quite a
bit but it does look like we’ll
avoid an outright contraction”
in gross domestic product.
Six months ago, the consen-
sus among economists sur-
veyed by The Wall Street Jour-
VOL. 17 NO. 273 Rs. 10.00 . Price with Hindustan Times Rs. 15.50 18 PAGES
The ugly underbelly of BoB’s Rise and fall of Sahara’s
app usage fiasco uP10 Subrata Roy uP7
₹0.19 EURO ₹90.23 ₹1.17 OIL $82.78 $0.36 GOLD ₹60,029 ₹0.00
Care issued Esops
to Saluja after Irdai
Gap widens
The overall trade deficit is
estimated at $17.08 billion,
up 17.6% on-year.
DON’T MISS
MINT
Apr 2022 Oct 2023
0
Merchandise trade
rejection: InGovern -10
-20
-18.3
balance ($ bn)
Ranjani Raghavan
-30
ranjani.raghavan@livemint.com
MUMBAI -31.4 Will exceed FY24 tax collection
-40 target: CBDT chairman Gupta
C
are Health Insurance Source: Commerce & The central government will exceed its
Industry Ministry
Pvt. Ltd issued direct tax collection target of ₹18.23 trillion
SARVESH KUMAR SHARMA/MINT
employee stock options this financial year, going by the healthy
Trade deficit
(Esops) to Rashmi Saluja, exec- revenue growth so far, Central Board
utive chairperson of its parent of Direct Taxes (CBDT) chairman Nitin
19,675.45 Gupta said. >P2
Religare Enterprises Ltd
(REL), despite the insurance balloons to
regulator specifically rejecting
the proposal, proxy advisor record high RBI asks Bajaj Finance to halt
InGovern Research Services lending via two loan products
3.30pm
said. After the rejection, the Rashmi Saluja, executive in October The RBI has barred Bajaj Finance Ltd from
Care board claimed that insur- chairperson, REL. lending under its eCOM and Insta EMI Card
ance regulator’s approval was Rhik Kundu & products. The action, it said, was
not really required for granting fered. Pratap Venugopal, an Dhirendra Kumar necessitated due to non-adherence of the
the options. additional non-executive inde- company to the extant provisions of digital
Care Health Insurance is pendent director at Care Health NEW DELHI lending guidelines of RBI. >P5
12,878
seen as the crown jewel of Rel- Insurance, who spoke on behalf
I
3.30pm
igare, which has attracted of the Care board, said Saluja ndia’s merchandise trade
takeover interest from the was granted 22.7 million deficit widened to a record International airlines see
Burman family office of FMCG options at ₹45.32 each; how- level in October owing to a scope in India as aviation hub
company Dabur’s founders. ever, this was subject to several near doubling of gold imports International airlines have always seen India
After the Burmans’ proposal terms and conditions. The during the festive season, offi- as a market that feeds their hubs, but that’s
met resistance, Saluja’s remu-
neration became a bone of
contention.
options did not require regula-
tory approval and none of them
had yet vested, he added.
cial data released on Wednes-
day showed. According to
experts, higher goods trade
changing with key foreign carriers from Asia
Pacific seeing India becoming an aviation
hub, to connect Africa and Middle East from
According to Religare, Saluja According to Venugopal, deficit could in turn lead to a their part of the world. >P6
was paid ₹43 crore in 2022-23, these options will vest in mul- higher current account deficit
while the Burmans told The tiple stages—33% after one and put pressure on the rupee.
Economic Times last week that year of grant, and on condition The goods trade deficit ‘World Cup 2023 is best ever in
it was above ₹150 crore. that Care raise ₹250 crore pri- swelled to a higher-than-ex- terms of quality and viewership’
Wednesday’s InGovern report mary capital; another 33.33% pected $31.46 billion last
The ongoing Cricket World Cup 2023 has
said Saluja stood to gain around two years from the date of month as a 6.3% rise in exports delivered on all the key metrics for the
₹250 crore solely from Care grant, and two years from the was offset by a 12% rise in International Cricket Council (ICC), be it fan
Esops, and that this had not vesting commencement date; imports, showed data from the engagement or revenue from sponsorships,
been specifically declared to and the last 33.34% five years ministry of commerce and said a top official of world cricket’s
Religare shareholders. governing body. >P5
Care Health Insurance dif- TURN TO PAGE 6 TURN TO PAGE 6
monsoon disrupted the kharif Devina Sengupta contractor costs also, continue
crop calendar, impacting the devina.sengupta@livemint.com to be levers in Q3 and Q4,” said
sowing and vegetative seasons MUMBAI Samir Seksaria, chief financial
while economists forecast officer at Tata Consultancy
H
farm output growth in iring activity cooled in Services (TCS) said during the
2023-24 to be slower this year. tech and retail sectors company’s September quarter
The government is also in in the December earnings announcement.
talks with Argentina and Brazil quarter as companies cut hir- Wipro’s chief human
for urad production, and East ing mandates and reduced resource officer Saurabh Govil
African countries, especially sub-contracting costs, while told Mint in October that the
Ethiopia and Tanzania for tur banking recruitment stayed company will “hundred per-
Rohit Kumar, consumer affairs
production, Singh said.
Singh explained weather
patterns have shifted the
flat and manufacturing saw a
minor uptick.
While hiring in the IT and
Hiring in the IT and startup
sector is down to the levels of
cent” look at sub-contracting
costs, which includes pay-
ments to vendors and recruit-
secretary. whole crop calendar. Besides, startup sector is down to the June quarter of 2020. MINT ers. “In an environment when
as income levels grow, food levels of June quarter of 2020 there is low growth, we are
the help of academics from habits are changing. when a strict lockdown was in down was on,” said Kamal Kar- looking at cost structure that
Delhi University. Currently, “People will eat more pro- force, retail and packaged con- anth, co-founder of Xpheno, a includes pyramids, layers,
the ministry uses an artificial
intelligence (AI)-based
software to help with these
tein and the consumption of
4.4 million tonnes (mt) of tur
may go up. So, we will need
sumer goods mandates are
almost 20% lower from a year
ago, recruiters said. However,
tech recruitment firm.
After a year of frenzied
recruitment that led to excess
onsite-offshoring, sub-con-
tractors , productivity. We are
looking at every aspect of
predictions. more, and for some time, manufacturing and automo- staff, many IT companies and cost,” Govil said.
Mint on 29 October import dependency might bile industries have shown startups have paused hiring Many HR firms expect hir-
reported that the government continue at the same level,” some growth in hiring. due to budget crunch and poor ing activity only in the first two
was planning to create a real- Singh said. “Hiring in IT companies and visibility on deal pipelines. months of the December quar-
time supply and demand In response to a question on startups has fallen by 40% Recruiters for IT services ter to meet their targets, since
model for agricultural com- whether the government will when compared to the Octo- companies are also worried global firms go on a furlough
modities that will help it plan be able to play a larger role in ber-December period of last that their sub-contracting period in the second half of
and evaluate policy for a vola- coming months in stabilizing year. In fact, in IT, recruitment costs will get reduced. “...pro- December. The festive season
tile market. numbers are now similar to ductivity, utilization and in the
This comes after a patchy TURN TO PAGE 6 April-June 2020 when a lock- given environment, the sub- TURN TO PAGE 6
nal was that the economy months ended in October core may yet crumple under the
would enter a recession over inflation, which excludes food delayed impact of higher inter-
the next 12 months. In Octo- and energy, ran at a 2.8% est rates. Outside forces like
ber’s survey, the average fore- annual rate, spitting distance energy prices or a financial cri-
cast of economists was for no from 2% and well below the sis could intervene. “It looks
recession. After Tuesday, the 5.1% annual pace in the first five like a soft landing until there’s
probability appears to have months of the year. some turbulence and things get
dropped further. That, at least, The big drop happened hairier,” said Nick Bunker, an
seems to be the verdict of inves- while employers continued to economist at Indeed who stud-
tors who sent stocks up sharply add jobs and and without any ies the labor market. “You only
and Treasury bond yields down obvious sign economic growth know it’s happened once you’re
on news that inflation was sur- was petering out. on the ground.”
prisingly docile in October. In September, the Fed Slowing wage gains have
If they’re right, it would be Over the three months through October, U.S. employers added expected core inflation as reinforced the downward trend
highly unusual. In the past 80 an average of 204,000 jobs a month, a marked slowdown from measured by the PCE price in inflation. Higher wages over
years, the Federal Reserve has earlier in the postpandemic period. AFP index to end the year at 3.7%. time can feed into higher pri-
never managed to bring infla- Now, it appears it could fall to ces. But average hourly earn-
tion down substantially with- response, the Federal Reserve the personal consumption 3.4%, according to Omair Sha- ings were up 4.1% on the year in
out sparking a recession. raised interest rates to a range expenditures price index. rif, president of Inflation October, the lowest since June
The strong economic between 5.25% and 5.5%, the October’s report, released Insights, a research firm. 2021 as firms compete less
rebound following the pan- highest level in 22 years. The Tuesday, showed inflation had Still, a soft landing isn’t guar- aggressively for workers.
demic pushed inflation to four- Fed aims for 2% annual infla- come down to 3.2%. More anteed. Inflation hasn’t made it
decade highs of 9.1% last year. In tion using a different measure, encouraging, over the five all the way to 2%. The economy TURN TO PAGE 6
02 ThursDay, 16 November 2023
New Delhi ECONOMY & POLICY LIVEMINT.COM

Odd-even scheme has had no noticeable Transport is currently contributing Even a 60% reduction in transport The 2019 scheme took personal cars
By Shuja Asrar impact on Delhi’s PM2.5 levels less than 17% to Delhi’s PM2.5 level will cut PM2.5 level by just 10% off roads, led to surge in other modes
shuja.asrar@livemint.com Average PM2.5 concentration (µg/m³) in Delhi’s air before/during/after each Share of all sources of PM2.5 in Delhi’s air % drop in Delhi’s PM2.5 level if city's transport Change (%) in traffic volumes in Delhi during the
phase of odd-even scheme
he odd-even road rationing formula 1-15 Jan 2016 15-30 Apr 2016 4-15 Nov 2019 Delhi transport Delhi peripheral industries is reduced by... implementation of the odd-even scheme in
Delhi additional sources* Biomass burning** Others November 2019
could make a comeback if Delhi's air 10-day period before During Period** after ...10% ...20% ...30% ...40% ...50% ...60%
Surrounding cities
quality index enters the “severe plus” 600
start of odd-even odd-even scheme* end of odd-even
category, the capital city’s 100 Taxis 19.5
environment minister said on Tuesday as the 80
-1.6
pollution worsened after Diwali. The minister’s Auto-rickshaws 7.5
400
comment came a week after the Supreme 60 -3.4
Court had reprimanded the governments of
Delhi and neighbouring states for failing to curb 40 -4.9
Two-wheelers 6.5
pollution and termed the proposed 200
20
traffic-rationing scheme “mere optics”. -6.6 Buses 4.7
17.4 13.2 14.9 13.7 Based on projected
For the last two weeks, the city’s air quality 0 PM2.5 contributors
has remained fragile, with the AQI repeatedly 14 Nov 15 Nov 16 Nov 17 Nov
during 14-17 November. -8.2 Personal car traffic -30.0
0 (projected) (projected)
entering the severe category. The Aam Aadmi * Includes residential, construction, waste burning, road dust, energy
Party government announced the *15 days in Jan 2016; 16 days in Apr 2016; 12 days in Nov 2019 (with a break on 11-12 Nov). and other sectors. ** Also includes incidents from outside Delhi. -9.8 Source: Media reports (based on
**Length of this period varies for each phase. The PM2.5 levels refer to average of all monitoring
implementation of the odd-even rule during stations whose data was available. Source: Decision Support System for Air Quality Management Source: Decision Support System for Air Quality Delhi government-backed study by Delhi
13-20 November 2023 as part of its Graded Source: Central Pollution Control Board, Mint calculations in Delhi (ministry of earth sciences) Management in Delhi (Ministry of earth sciences) Integrated Multi-Modal Transit System)

Response Action Plan. But the decision was

kept on hold after a brief spell of rain improved Odd-even scheme has failed to Most in NCR oppose two-wheeler From curbing pollution to easing congestion: Odd-even rule has found favour across the globe
the air quality. Now it seems to be back on the impress many despite initial optimism exemption under odd-even scheme Odd-even traffic rationing schemes implemented Italy (2022)
table after the ban on firecrackers was flouted Paris, France (1977) To restrict tourists &
Share of responses (%) to: "Which exemptions are you by countries To reduce traffic
Share of responses reduce congestion
with impunity on Diwali. opposed to in the implementation of the odd-even scheme?" congestion
Even though the Delhi government has (%) to: “Do you US (1978)
support the Two-wheelers Following oil shortage
repeatedly vouched for it, questions have been introduction of the 56
raised over the effectiveness of the odd-even odd-even rule
36 Women drivers alone or with child up to 12 years of age
Yes
scheme, which has been implemented thrice in (proposed earlier) (in %) 44
the city starting with 2016. Barring the first in Delhi during 64 Vehicles with person(s) with physical disabilities
13-20 November as No Beijing, China (2008)
instance, the traffic rationing scheme has had 44 To reduce
a step to reduce congestion
no visible impact on improving the air quality in pollution?”
Private vehicles with school children in uniform (only during school timings)
the city. Mint analyses the impact of the 33 Mexico (1989)
scheme on reducing the city’s toxic air. Electric vehicles To reduce air pollution

The survey covered 21,000 residents of Delhi, Noida,

22 Delhi (2016)
In most cases, the New Jersey, US To reduce
Ghaziabad, Gurugram and Faridabad. Other exemptions not listed above years in brackets Lima, Peru (2019) (2012) pollution
22 refer to the For 2019 Pan Following
instance of first American Games Hurricane Sandy Jakarta, Indonesia (2016)
Source: Local Circles survey Source: Local Circles survey implementation To reduce congestion Source: Mint research
Design: Sarvesh Kumar Sharma/Mint

THE OTHER SIDE Arguments made by Delhi government in Supreme Court

2-15%
INCREASE IN average speed on major roads of
the city when the scheme was on in 2019*
*Delhi government-backed study by Delhi Integrated Multi-Modal Transit System **Greenstone (University of Chicago) et. al. (India Policy Forum, NCAER) ***Chowdhury (IIT-D) et. al., Environmental Science & Policy, Aug 2017
36%
SHARE OF people who shifted from cars to alternative
15%
ESTIMATED AVERAGE decrease in daily
13%
DECREASE IN PM2.5 level from 8 am to 8 pm during
4-6%
DROP IN PM2.5 level due to traffic
modes of transport during the 2019 ‘odd-even’ period* fuel consumption during that period* the implementation of scheme in January 2016** restrictions from 1 to 15 January 2016***
Source: News reports

Will exceed FY24 tax collection Underground coal mining policy to be unveiled soon
target: CBDT chairman Gupta Rituraj Baruah
rituraj.baruah@livemint.com
mental impact of under- are able to have eco-friendly
ground coal mines is lower mining. Therefore we are pro-
NEW DELHI than open cast mines, as large moting underground coal
Gireesh Chandra Prasad Gupta said the Centre’s has over the years stepped up scale deforestation is not mining and a lot of facilitative

T
gireesh.p@livemint.com direct tax revenue collection is its information-gathering on he Centre is considering required. Displacement of provisions are being thought
NEW DELHI growing at 21-22% on net basis financial transactions, widened measures to boost people too is significantly less. of,” Meena said.The coal min-
after refunds, while on a gross the scope of taxes deducted at underground coal min- “The impact istry on Wednes-

T
he government will
exceed its direct tax col-
lection target of ₹18.23
trillion this financial year,
going by the healthy revenue
growth so far, Central Board of
Direct Taxes (CBDT) chairman
Nitin Gupta said.
Gupta told reporters that
during state assembly polls and
the national polls, the tax
authority maintains intense
surveillance on unexplained
cash and jewellery, and takes
action in coordination with
union and state election
authorities.
basis, it is growing in the range
of 17-18%.
“Revenue collections are
healthy and refund quantum is
also good,” Gupta said, adding
that the revenue collections are
in line with the strong eco-
nomic growth. “We will exceed
the budget target,” said Gupta.
The revenue collection trend
will become clearer after the
third advance tax instalment
comes on 15 December, he said.
The CBDT chairman said the
department will enhance the
use of technology in tax admin-
istration. The tax department
source and revamped its infor-
mation technology infrastruc-
ture to make tax administration
more efficient. Gupta said tax
return filing was also growing
and that the department had
reported over five million first-
time filers in this year’s filing
season. The government has so
far collected ₹12.37 trillion in
direct taxes prior to adjusting
for refunds, showing a growth
of 17.59% over receipts in the
same time a year ago, CBDT
said last week.
This is 58% of the full year
target for direct tax collections.
ing and will soon come up with on the environ- The impact of day launched the
a policy framework, said coal ment f r o m underground coal eighth round of
secretary Amrit Lal Meena. underground mines is lower commercial coal
Speaking to reporters on the coal mines is compared to mines auctions
sidelines of the launch of the minimized
open cast mines where it is offer-
eighth round of commercial because in open ing a total of 39
coal mine auctions, the official cast mines we as deforestation mines. Launching
said the government aims to have to remove is not required the auction virtu-
increase coal output from the entire forest ally, coal minister
underground mines to 100 The government aims to increase coal output from underground cover. Lot of loss Pralhad Joshi said
million tonnes from the cur- mines to 100 million tonnes per year. of the agricultural land is also that efforts are on to stop coal
rent 26 million tonnes per involved. But in underground imports by 2025-26.
year. to promote underground min- under different discussion sta- coal mines, because of the The mines being auctioned
“Such mines have already ing. The committee has sub- ges and we will shortly come technologies available now the are spread across the coal
been identified. We had con- mitted its report; the recom- out with a suitable policy forest cover is not required to bearing states of Jharkhand,
stituted a high-level commit- mendations of the committee framework,” Meena said. be removed. There is minimal Odisha, Maharashtra, West
tee to suggest policy measures are with the ministry. They are He noted that the environ- displacement of people. So we Bengal and Bihar.

India signs agreement with IPEF members on supply chain resilience CORRECTIONS AND
CLARIFICATIONS
Mint welcomes comments,
Dhirendra Kumar Francisco, also provides bene- progress made by the IPEF meet, Goyal also held bilateral ing the interaction with his suggestions or complaints
dhirendra.kumar@livemint.com fits like potential shifting of partners on Pillar-III (clean meetings with Raimondo, counterparts from Association about errors.
NEW DELHI production centres in critical economy) and Pillar-IV (fair Malaysia’s trade minister of Southeast Asian Nations
Readers can alert the
sectors and mitigating risks of economy). Tengku Zafrul Aziz, and Indo- (Asean ) countries, the minister
newsroom to any errors in the

I
ndia has signed an agree-
ment with the US and 12
other members of the Indo-
Pacific Economic Framework
for Prosperity (IPEF) to reduce
its dependency on China and
mitigate risks of economic dis-
ruptions from the supply
chain, the commerce ministry
said in a statement on
Wednesday.
The agreement, which was
signed between union minis-
ter for commerce and industry
Piyush Goyal and US trade sec-
retary Gina Raimondo in San
economic disruptions from The other ben- nesia’s economic suggested expedited conclu- paper by emailing us, with your
supply chain shocks. efits of the pact The pact provides affairs minister sion of the AITIGA (Asean-In- full name and address to
It is an attempt by IPEF include supply benefits like Airlangga Har- dia Trade in Goods Agree- feedback@livemint.com.
member-nations to decrease chain diversifica- mitigating risks of tarto. ment) review,” the official
their dependency on China tion, mobilization “During these statement said. IPEF was It is our policy to promptly
economic respond to all complaints.
and prepare for potential of investments,
disruptions from ministerial meet- launched jointly by the US and Readers dissatisfied with the
future supply chain challen- deeper integra- ings, the minister other partner countries of the response or concerned about
ges. tion of India in supply chain (Goyal), inter-alia, Indo-Pacific region on 23 May Mint’s journalistic integrity may
“India joins US and 12 other The agreement was signed by commerce minister Piyush Goyal global value shocks discussed bilat- 2022 in Tokyo. This group write directly to the editor by
IPEF partners to ink the IPEF and US trade secretary Gina Raimondo in San Francisco. PTI chains, support to eral collaboration includes India and the US sending an email to
supply chain resilience agree- MSMEs and crea- on trade, com- along with countries like Aus- asktheeditor@livemint.com
ment that will fortify and ing platform X after signing under IPEF, including on the tion of a seamless regional merce and investment, tralia, Brunei, Fiji, Indonesia, Mint’s journalistic Code of
strengthen global supply the agreement. bio-fuels alliance suggested by trade ecosystem, which would enhanced business engage- Japan, the Republic of Korea, Conduct that governs our
chains and foster adaptability, The minister also urged India. According to the com- facilitate the flow of Indian ments, World Trade Organiza- Malaysia, New Zealand, the newsroom is available at
stability and sustainability,” early implementation of the merce ministry, Goyal held products, it added. tion (WTO) matters, and other Philippines, Singapore, Thai- www.livemint.com
Goyal said on social network- envisaged cooperative work discussions on the substantial On the sidelines of the IPEF issues of mutual interest. Dur- land and Vietnam.

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First published in February 2007 to serve as an unbiased and clear-minded chronicler of the Indian Dream.
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LIVEMINT.COM DEALS, TECH & STARTUPS ThursDay, 16 November 2023
New Delhi 03

m MINT SHORTS
ByteDance weighs sale of gaming
Data laws make top cos
studio behind mobile legends
ByteDance Ltd is considering selling the gaming studio Shang-
hai Moonton Technology Co., people familiar with the develop-
ment said, as the TikTok owner looks to streamline its operation
opt for India centres
and focus on core businesses. The startup is working with an
adviser to gauge interest from potential buyers for the studio
behind popular game Mobile Legends: Bang Bang, the people
said. ByteDance acquired Moonton in 2021 at a valuation of SAP, Akamai and Atlassian are opting to store Indian data in the country
about $4 billion, the people said. Discussions are at an early stage
and the deal size target couldn’t be immediately learned, accord-
ing to the people, who asked not to be identified as the informa- Shraddha Goled
tion is private. BLOOMBERG shraddha.goled@livemint.com
BENgaluru

E
China claims to have world’s nterprise resource planning (ERP)
software provider SAP recently
fastest internet network announced that it will make sev-
ISTOCKPHOTO
eral cloud solutions like SAP
S/4HANA Cloud and SAP Busi-
ness Technology Platform available on
India-based data centre from mid-2024.
The company said it is taking this step in
the light of regulatory requirements for
data processing and storage which affects
the Indian businesses that are part of SAP
clientele.
India, US sign deal
Like SAP, other major players like con-
tent delivery network player Akamai and
workflow management software provider
to boost start-ups
Atlassian are also opting to store and pro-
Huawei Technologies Co. and China Mobile Ltd have built cess their Indian data within the country’s Dhirendra Kumar job growth, particularly in criti-
a 3,000 km (1,860-mile) internet network linking Beijing borders. Along with reasons ranging from The government is now in the process of framing and rolling out the rules and regulations dhirendra.kumar@livemint.com cal and emerging technologies
to the south, which the country is touting as its latest tech- India’s emergence as an IT hub to lowering of the DPDP Act. MINT NEw DElhI (CET) as identified under India
nological breakthrough. The two firms teamed up with the latency, the data protection laws in the –US initiative for Critical and

Tsinghua University and research provider Cernet.com country are also being mentioned as a piv-
Corp. to build what they claim is the world’s first internet otal factor for this trend.
network to achieve a “stable and reliable” bandwidth of 1.2 The data protection law—Digital Per-
terabits per second, several times faster than typical speeds sonal Data Protection (DPDP) Act—focuses
around the world. Trials began 31 July and it’s since passed on the governance and the processing of
various tests verifying that milestone, the university said in digital personal data. The government is
a statement. BLOOMBERG now in the process of framing and rolling
out the rules and regulations of the Act. It
may be noted that with respect to data
Paytm collaborates with Amadeus localization, DPDP lays down restrictions
for the cross-border transfer of
to drive travel experience with AI data by a fiduciary through a
New Delhi: One97 Communications, which owns Paytm brand, whitelist-blacklist approach.
on Wednesday announced a partnership with Amadeus, under This means that cross-border
which it will integrate Amadeus’ travel platform and optimise personal data transfer will be allowed, with
travel experience from search to booking, and payment.This the exception of countries restricted by the
partnership brings together Paytm’s vast user base and Ama- government.
deus’s expertise to provide travellers with a more seamless and “Even though the Act in its current form
efficient booking experience, according to a release. Paytm has may not be explicitly prescribing localiza-
partnered with global travel technology company Amadeus to tion of data, I have seen that many compa-
redefine travel experience with artificial intelligence, the release nies are cautious. They don’t want to take
said. “For the next three years, the company will integrate Ama- chances should there be a different inter-
deus’s travel platform, enhancing the travellers’ experience from pretation in the future. Since India already
search to booking, and finally to payment,” it said. PTI is a good market and has an upcoming data
I
centre infrastructure, companies are look- change to something more than a data- ndia has sealed a deal with Emerging Technology (iCET).
ing at hosting data on India-based data cen- generating market, say experts. the US to boost the start-up The ‘Innovation Hand-
tres,” said Sunil Gupta, the chief executive “I believe this (DPDP Act) will also lead to ecosystem which entails shake’ paves the way for a joint
officer of the Mumbai-headquartered data a huge inflow of data back to India. The Act greater cooperation in critical commitment to strengthen
centre company Yotta. hints that in those geographies technologies, the commerce the startup ecosystem and
The current Act clarifies that CLOUD where the data from India can ministry stated in an official promote cooperation in criti-
existing sectoral laws with SOLUTIONS go, data from those geograph- release. cal and emerging technologies
higher regulatory standards for ies can flow into India very The agreement was signed between India and the US.
personal data transfer outside THE data protection freely,” said Yotta CEO Gupta. between US secretary of com- Signing an MoU to enhance
India take precedence. “One law focuses on the
governance and the
AS Rajgopal, CEO of NxtGen merce Gina Raimondo and innovation ecosystems via an
example is the processing of digital Datacenter and Cloud Tech- Union minister for commerce innovation handshake is an
Reserve Bank of personal data nologies, said India has a mas- and industry Piyush Goyal, important step in growing the
India’s data localiza- sive opportunity to lead the who led an industry roundta- India-US partnership for the
tion mandate. It SAP said it is taking APAC region (beyond China) in ble to officially launch the two 21st century, Goyal said.
the step in the light
covers entities like banks, and of regulatory terms of the data centre indus- ambitious Innovation Hand- At the event, co-hosted by
other financial institutions. requirements for try. “The earlier data centre shake agenda that was pre- the US-India Business Council
India being the most populous data processing hub for APAC was considered viewed by US president Joe and Confederation of Indian
country in the world with a to be Hong Kong and later Biden and Prime Minister Nar- Industry, CEOs from major
large digital payment ecosys- Singapore. Now both these endra Modi in June this year. ICT companies, VC firm exec-
tem and a huge amount of transactions will regions are small in terms of data generated As per the agreement, both utives, and founders of start-
give rise to data centre growth,” said Mini and region size. Given positive factors play- the countries have agreed to ups in the critical and emerg-
Gupta, cybersecurity consulting partner, ing in favour of India, we can be positioned share information and best ing technology space dis-
EY India. to become the hub for not just Indian mar- practices for startup fundrais- cussed how to enhance US-
Further, the perspective on India should kets but also of other APAC regions.” ing, promote innovation and India tech collaboration.

Dealmaking sees a dip in October

7,000 Value ($ mn) Volume (right-hand scale) 200
‘Using data analytics to drive Smartwatch sales rise in Q2
6,000

5,000
180
160
140
growth in catchment areas’ Shouvik Das
shouvik.das@livemint.com
ket analyst for wearable devi-
ces at IDC India, said brands
4,000
120 NEw DElhI are increasingly focusing on
100 Gaurav Laghate of online revenue and we “high-decibel marketing cam-

I
3,000 80 gaurav.laghate@livemint.com asked if there was a nice mall ndia’s smartwatch market, paigns and promotions” to
2,000 60 MuMBaI we could go to. We found a which has been on a steady drive December quarter ship-
40 mall, and bang, in April, we growth trajectory, saw ship- ments. This will result in

I
1,000 20 n a move that aims to opened our first store in Ran- ments rise by over 32% “strong double-digit annual
0 0 strengthen its presence in chi,” Mishra said. “The man- sequentially in the September growth in CY23.”
22 Jan 23 Oct
Source: Vccedge
the highly competitive retail date is very clear—keep invest- quarter. Growth in the sector The offline growth strategy
landscape, Marks and Spencer ing in this area.” was driven by homegrown is a common one among the
(M&S) India is using data to In fact, the company’s brands focusing on offline top brands, which include

Angel, VC funding fuel its expansion across the

country. The brand’s strategy
centres on identifying “catch-
recent pace of expansion is
very significant. “We have
opened six stores in the last six
retail, which saw a 58% rise in
overall sales in this segment—
as per a report published
Growth in the sector was driven
by homegrown brands focusing
Noise and Boat. On 18 August,
Gaurav Khatri, CEO of Noise,
told Mint that the company is

slip in October but ment” areas where the influ-

ence of Western culture is on
the rise, and capitalizing on
Ritesh Mishra, managing
director, Marks & Spencer.
months, and that’s the kind of
pace that we will keep build-
ing. Every month we will open
Wednesday by market
researcher, International Data
Corporation (IDC) India.
on offline retail. ISTOCKPHOTO

nels, which brands began

already seeing 15% of its sales
from offline channels. A top
executive at a fellow Indian
the shifting cultural dynamics one store.” A total of 16.9 million smart- focusing on over the past few brand reported similar offline
deal flow up a tad and consumer preference in
targeted regions.
Managing director Ritesh
ics in shaping the brand’s
growth trajectory.
Unlike traditional expan-
In October, the company
opened its 100th store in India,
with the 18th outlet in Mum-
watches were shipped in the
September quarter, IDC data
showed. The September quar-
quarters. IDC’s report said off-
line retail for smartwatches
accounted for 31.5% of all
sales, but added offline sales
are likely to increase sharply in
the next three quarters.
K Amoghavarsha October 2023 saw the lowest Mishra said the company will sion models that solely rely on bai. “This is a milestone for us. ter is typically the strongest in sales—up from 26.1% in the This growth of smart-
k.amoghavarsha@livemint.com number of deals since 2015. open five to six stores by the foot traffic and mall availabil- I have been associated with terms of sales and shipments, June quarter. Pushing the off- watches was also driven by a
BENgaluru This is also the first time, deal end of the year based on cus- ity, M&S’s approach involves a this brand for about 12 years. driven by festive season sales line market is key for the sec- better than expected festive
volume has dropped below the tomer preference data. deep dive into customer data, Constantly we were sort of in India. This is a 32% sequen- tor, which has been struggling period, which saw the value of

T
he angel and venture
capital (VC) investments
dropped in October in
terms of deal value, as it saw a
31% reduction on a month-on-
month (MoM) basis. On the
other hand, deal volume
increased slightly, thus dis-
rupting the temporary fund-
ing growth observed in the
previous months.
The last month saw 79
transactions with a cumulative
investment value of $598 mil-
lion, a substantial drop from
September with 76 deals val-
ued at $878 million, as per
readings from
VCCEdge, the data
80 mark.
Despite the year-on-year
reduction in dealmaking,
funding activity has been sta-
ble since April wherein deal
value as well as volume
slumped to the lowest since
2015. Even on a month-on-
month basis, April’s deal-mak-
ing was the lowest thus far in
2023.
Funding activity in the eco-
system has been dwindling
over the past 10-12 months due
to a multitude of factors such
as rising interest rates, stock
market volatility, and a correc-
tion in tech stocks, all
of which culminated
While the British fashion
retailer owns 51% in the Indian
business, Reliance Retail owns
the remaining 49%. The com-
panies are equally committed
to invest and grow the brand,
said Mishra while emphasizing
the critical role of data analyt-
HUL adds pizzazz so app can help outdo e-comm platforms
Suneera Tandon
suneera.t@htlive.com
NEw DElhI
he added. “It’s about using the
data analytics and insights that
the customers give to drive
your expansion strategy by
understanding the local nuan-
ces.”
“For instance, we found
Ranchi is picking up in terms
directly from the company’s
app.
However, over the past few
years, the popularity of online
looking at that stage when we
get to hit this crucial mile-
stone,” he said.
The company’s focus goes
beyond brick-and-mortar out-
lets, underscoring the impor-
tance of growing its presence
through the hybrid model.
tial and 41% year-on-year rise
in smartwatch shipments,
which account for one-third of
all wearable devices like fit-
ness bands, smartwatches and
true wireless earbuds.
A key driver of this rise has
been via offline retail chan-
with wafer-thin margins for smartphone sales increase.
most devices amid a war to Kailash Lakhyani, founder and
capture greater market share chairman of All India Mobile
among homegrown brands. Retailers Association (Aimra),
Notably, the top five smart- said a large part of the rise in
watch brands in India are sales were driven by availabil-
domestic ones. ity of easy affordability plans at
Vikas Sharma, senior mar- brick-and-mortar retailers.
video will be generated which and neighbourhood kiranas
the retailer can then share are concerned about decreas-
through WhatsApp and email. ing shopper footfall and con-
The advertisement can be sequent sales loss. While many

intelligence platform
of VCCircle.
However, as compared to
the previous year, last month
saw an opposite trend as the
deal value in October 2023
increased slightly, but deal
volume dipped parallelly.
Notably, the same was
observed in September as well,
wherein deal value increased
slightly in contrast to 2022.
The trend can be attributed
to the start of the funding win-
ter which gripped the startup
ecosystem in the later stages of
2022 and picked up signifi-
cantly at the start of this year.
Similar to the previous
months in 2023, deal volume
recorded in October was the
lowest if compared on a year-
on-year basis. With 79 deals,
in the current fund-
ing slump.
Consequently, investors
especially in the late stages
have become extremely cau-
tious about undertaking trans-
actions.
The slump in funding is
starker as the Indian startup
ecosystem touched unprece-
dented heights in venture cap-
ital and private equity funding
in 2021, leading to the mile-
stone of over 100 unicorns.
For context, in September
2021, startups raised $4,180
million across 182 deals.
However, the steady rise in
dealmaking as well as the
increased activity of investors
securing capital potentially
indicates a sense of stability
returning to the ecosystem.
I
ndia’s largest packaged con-
sumer goods company Hin-
dustan Unilever Ltd (HUL)
is pushing personalized mes-
sages and promotions on its
business-to-business app Shi-
khar to drive engagement for
small store owners amid
greater competition from
online platforms.
Shikhar is the company’s
business-to-business app that
allows millions of shopkeepers
to place orders directly with its
distributors any time. In
FY23—1.2 million retail outlets
used the Shikhar app to place
orders. Since HUL sells a wide
variety of products spanning
soaps, detergents, shampoos,
washing bars, ketchups to
soups and ice-creams, retailers
find it useful to place orders
platforms has changed the
dynamics of how consumers
and shopkeepers trade goods.
These platforms include eB2B
companies that supply goods
directly to small shopkeepers
and quick commerce compa-
nies that deliver goods to con-
sumers from dark stores
within minutes.
The onslaught of new distri-
bution channels is prompting
large companies, including
HUL, to rethink how they dis-
tribute their wide assortment
of goods. Nine out of ten
households in India use one or
more of its brands.
The company recently
rolled out the ‘Power to The
Retailer’ campaign that helps
local retailers offer custom-
ized, celebrity-fronted adver-
generated in Hindi or English have adapted by launching
depending upon the retailer’s their own home delivery servi-
location. ces, offering discounts or
The key objective of this credit, they often lack the nec-
campaign is to essary expertise
empower retail- Since HUL sells a to effectively pro-
ers to advertise wide variety of mote these offer-
their offerings products, ings. Addition-
and enable per- retailers find it ally, the produc-
sonalized promo- tion of high-
useful to place
tions at each quality digital
store, Kedar Lele, orders directly content often
Shikhar is HUL’s B2B app that allows shopkeepers to place orders executive from the app exceeds their
directly with its distributors any time. MINT director, Cus- resources. To
tomer Develop- address these
tisements—a strategy aimed at is generating one customised ment at HUL, said. This, in issues, we have designed this
boosting their store footfall advertisement every 20 sec- turn, will push shoppers to buy campaign to democratise
and customer engagement, onds. more of the company’s brands advertising by empowering
the company said. The feature Shopkeepers can use an such as Vim, Dove, Pears, and neighbourhood kirana
is available to over 1.3 million in-built feature within the Surf Excel, among others. stores,” Lele said.
retailers on Shikhar. In the app—within minutes of sub- “As digital commerce plat- Formerly, such promotional
first two weeks of the cam- mitting, a customised celeb- forms grow, shoppers are tactics were the domain of
paign going live, the company rity (Arshad Warsi) endorsed shifting to these platforms, large, resource-rich chains.
04 ThursDay, 16 November 2023
New Delhi MARK TO MARKET LIVEMINT.COM

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

65,675.93 1.14 19,675.45 1.19 17,508.05 1.09 46,425.55 0.95 19,698.40 1.14 33,117.87 0.91 39,252.56 1.13
PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN

64,933.87 65,461.54 19,443.55 19,651.40 17,318.60 17,493.30 45,986.70 46,348.05 19,475.70 19,675.50 32,817.65 33,032.81 38,814.07 39,161.40
HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW

65,747.65 65,373.50 19,693.20 19,579.65 17,518.90 17,448.30 46,478.55 46,155.05 19,714.90 19,611.05 33,141.66 32,972.85 39,301.85 39,138.46

m MINT SHORTS
Dollar tumbles most in a year as
Pidilite: New moves, old triggers
traders bet on end of US hikes Harsha Jethmalani
Holding tight So, the financial impact is likely to be and margin outlook remains robust,”
The US dollar tumbled by the most in a year after soft harsha.j@htlive.com negligible. The NBFC business will be said a Prabhudas Lilladher report.
Pidilite Industries saw gross
inflation data led traders to ramp up bets the Federal margin surge to multi-quarter
run by a completely separate and well- On the bright side, lower vinyl acetate

Reserve will start cutting interest rates by mid-2024,
sending Treasury yields plunging. A Bloomberg gauge of
the dollar tumbled as much as 1.3% on Tuesday, the larg-
est such drop since November 2022. It stayed close to the
previous day’s close on Wednesday, helping propel the
won and ringgit to the top of Asia’s currency rankings.
The moves followed a report that showed US headline
and core inflation in October slowed more than econo-
mists had forecast. The release of the data set off a major
shift across world financial markets, with traders antici-
pating that the Fed’s aggressive rate hikes will succeed in
reining in the inflation. That sent bond yields sliding,
sapping the incentive for overseas investors to shift
money to the US and fuelling a rally in risk assets like US
and emerging-market stocks. BLOOMBERG
A
dhesives maker Pidilite
Industries Ltd has caught
investors by surprise with
its decision to enter the
non-banking financial
companies (NBFC) sector. Pidilite
intends to set up a lending business with
the acquisition of promoter group com-
pany Pargro Investments Pvt. Ltd. The
aim is to provide small-ticket loans to
Pidilite’s channel partners/ecosystem
(dealers, masons, and contractors). The
Pidilite management feels channel part-
ners do not have easy access to short-
term loans at reasonable interest rates.
So, this move could help address the
issue. Also, Pidilite will get access to data
and deepen connections with interme-
diaries, which has been its key approach
for decades, pointed out Nuvama
Research in a report.
But the stock’s muted reaction indi-
cates that investors are edgy. Unlike the
paints business, which is an adjacent
product category, and will help Pidilite
become a home décor solutions pro-
vider, the NBFC business is not directly
related to Pidilite’s mainstay business.
Pidilite recently launched Haisha
The NBFC foray is not directly related
to Pidilite’s main business. MINT
Paints. Pidilite boasts of a strong brand
recall value and solid distribution net-
work, which are among the key factors
to succeed in the paints sector. Still, ana-
lysts were wary. Competition in the dec-
orative paints business has heated up
with the entry of newer companies with
deep pockets such as Grasim Industries,
high in Q2FY24, aided by soft raw
material prices
60
Consolidated gross margin (in %)
50
40
30
20
10
0 muted at 2% y-o-y to ₹3,076 sectors will be
Q1FY22 Q2FY24
Source: Company, Kotak Institutional Equities
PRANAY BHARDWAJ/MINT
so gaining market share could be a tus-
sle. The Pidilite management is not
going full throttle, at least for now, on its
NBFC business investment. “We believe
that quantum is too small for such a
large company—an ₹100 crore expo-
sure over two years implies less than 2%
of Ebitda,” added the Nuvama report.
experienced team without any Pidilite monomer (VAM) prices pushed gross
executives, the management clarified margins to a multi-quarter high of 51.3%
allaying concerns that Pidilite may not in Q2FY24. VAM prices were at $1,000/
have enough expertise to manage the tonne in Q2FY24 versus $2,500 last
NBFC business. year. That said, VAM prices are near bot-
Meanwhile, margins and volume tom and the management expects pri-
growth trajectory of its core ces to inch up, given global
business remain the crucial BONDING uncertainties and geopoliti-
monitorables. In the Sep- POINTS cal tensions.
tember quarter (Q2FY24) Profitability outlook
underlying volume growth VOLUME growth in would also hinge on the pace
in its key Consumer & key C&B segment
was robust in Q2,
of investments in advertise-
Bazaar segment stood at but realizations ments and distribution.
8.4% year-on-year (y-o-y) were subdued Here, the company plans to
with rural demand outpac- be aggressive to beat com-
ing urban. However, consol- INVESTMENTS in petition. These efforts bode
recent ventures in
idated revenue growth was the NBFC and paints well for Pidilite’s long-term
growth, but so far in this cal-
crore. Subdued perform- closely tracked endar year, the stock per-
ance of the export-focused formance has been disap-
B2B segment and price pointing, falling 3.5%, lag-
reductions were the dampeners. ging Nifty50. This comes on the back of
To pass on the benefit of easing input concerns that the benefits of soft raw
prices, the company took price cuts dur- material prices are set to wane, also, the
ing the quarter, which weighed on reali- company may choose to sacrifice on
zations. “We cut our FY24/25 earnings realisation growth for volumes. Plus,
per share estimates by -2.5%/-3.1% as 8% valuation is not cheap. The stock is trad-
price cut since March 23 (5% in Q2FY24) ing at one-year forward price-to-earn-
will impact realizations even as demand ings of 57x, showed Bloomberg data.

Residential property sales in China fell 3.7% in January-

October compared to the same period in 2022. BLOOMBERG Muted demand outlook dampens Page’s turnaround hopes
China property slump deepens Vineetha Sampath some extent. Thus, the company expenses and advertisement employees exiting at senior lev-
Good and bad
as Beijing mulls more stimulus vineetha.s@livemint.com missed analysts’ expectations on Page Industries' revenue continued to disappoint, but margin costs. Page plans to maintain els—the chief operating officer
The contraction in China’s home sales and property revenue in Q2. surprised positively in Q2FY24 Ebitda margin in the 19-21% resigned last week. The com-

T
investment both deepened in October, a steeper down- he woes of Page Industries What’s more, the demand Revenue (in  crore) Ebitda margin (in %) (right-hand scale) range going ahead. Since the pany has a proper transition
turn that may push the government to do more to shore Ltd are far from over with environment is not likely to pick 1,400 28 company is investing in some planned and is confident of man-
up the struggling housing market. Investment in prop- revenue declining year-on- up pace any time soon. Page sees 1,200 24 digital initiatives, some adverse aging with the current team. But
erty development fell 9.3% in the first 10 months of 2023, year for the third consecutive some stress in the urban and 1,000 20 impact on the margin cannot be it remains to be seen if the new
compared with a 9.1% decline in January-September, quarter. Falling volumes led to mid-premium segments. In 800 16 ruled out. Ebitda is earnings management can help Page turn
data published Wednesday by the National Bureau of 8.4% year-on-year drop in reve- men’s innerwear, it notes that 600 12
before interest, taxes, deprecia- over a new leaf.
Statistics showed. Economists surveyed by Bloomberg nue to ₹1,125 crore in the Septem- consumers have not down- tion, and amortization. To be sure, muted earnings
400 8
had forecast it stabilizing at a drop of 9.1%. Residential ber quarter (Q2FY24). Page holds graded but the buying quantity A delayed revival in volumes over the past few quarters have
200 4
property sales fell 3.7% in January-October compared to the exclusive licence for the man- has reduced. So the company had led to a cut in earnings esti- meant a 21% drop in shares of
0 0
the same period in 2022, a steeper fall from the 3.2% ufacture, marketing and distribu- hopes that sales will get a boost Q2FY22 Q2FY24 mates for Page. Kotak Institu- Page in the last one year. The
decline in the first 9 months of this year. “Clearly, the tion of Jockey brand in India and from the festival season in Q3. Note: Ebitda is earnings before interest, tional Equities has trimmed its stock trades at 52 times its FY25
tax, depreciation and amortization Source: Company, Nuvama Research
property sector remains a weak spot for the economy,” some more countries. It also holds However, according to Nuvama FY2024-26 earnings per share estimated earnings, showed
PRANAY BHARDWAJ/MINT
said Zhou Hao, chief economist at Guotai Junan Interna- the sole licence for Speedo brand Research, it is not certain how estimates by 6-9%, as they bake Bloomberg data. While valuations
tional in Hong Kong. That worsening picture comes as in India. Volumes were impacted salient the innerwear category is Page to revive volumes. There is points year-on-year expansion in lower-than-expected revenue don’t seem pricey given Page’s
Beijing plans to provide at least $138 billion of low-cost by muted demand, which led to to a spike during festival season. some respite on the margin in the Ebitda margin to 20.8%. performance while largely high return ratios, consistent rev-
financing to the nation’s urban village renovation and excess inventory in the system. A This means that festive season front. Despite the fall in revenue, This was led by stable raw mate- retaining margin estimates. enue growth is a key catalyst to
affordable housing programmes. BLOOMBERG high base also played spoilsport to may or may not be a catalyst for Page clocked about 140 basis rial costs and a fall in employee Meanwhile, Page is seeing the stock’s future course.

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

MSCI EM Indian equities jump 1.2%, tracking global cues Rupee jumps 21p to
index rejig
to fuel flows FROM PAGE 1 India and may aid the momen-
tum as one of two negative
62,030 contracts long on 15
September when the market
In percentage terms, the
Nifty gained the most since 31
end at 83.12 vs dollar
increase in the tech-focused overhangs seems to be out of hit a record high of March when it rose 1.6%, while
worth $1.5 bn Nasdaq. The US reported retail the way,” said Samir Arora, 20,222.45—which reflects the Sensex’s rise was the most PTI lowest level since September
inflation of 3.2% in October, founder of Helios Capital. their bearish bets. since 30 June when it gained feedback@livemint.com 2021, they added.
FROM PAGE 1 lower than an estimated 3.3%. “The markets have priced in a The rally on Wednesday in 1.26%. The Nifty SmallCap 250 At the interbank foreign

Since global fund managers
use MSCI indices to allocate
funds to emerging markets, the
rise in weight may attract over
$1.5 billion from passive track-
ers of this index, Pagaria said.
Suzlon, Tata Motors and
Paytm traded up between 2%
and 4% during the day, follow-
ing news of the inclusion.
To adjust for the country
weighting in the index after
the fresh inclusion, leading
companies such as Reliance
Industries, ICICI Bank, Infosys
and HDFC Bank could witness
minor weight reductions and
consequent outflows between
$100 million and 200 million
each, according to Pagaria.
Apart from the Standard
Index, the MSCI Small-cap
Index has also seen inclusions
of the likes of SJVN, Gokaldas
Exports, PTC India and Hin-
dustan Construction Co.
MSCI India has outper-
formed the MSCI EM Index,
rising 4.7% over the past one
year through 13 November,
against the latter’s 0.87%
decline, according to Bloom-
berg data. “India’s earnings
have been the driving force
behind the increase in share
prices, which have led to India’s
weighting increase doubling
on MSCI,” said Rajesh Palviya,
derivatives and technical head
at Axis Securities.
For the 42 Nifty firms that
have declared results, earnings
are up 35% versus Motilal
Oswal Financial Services’
expectations of 30%.
It was the first deceleration in
four months and raised expec-
tations that the US Federal
Reserve might refrain from
hiking rates further.
The dollar index, which
measures the US greenback
against a basket of currencies,
fell to a two-month low on
Tuesday while US treasury
yields shed 19 basis points
(bps), their biggest one-day
drop since March, driving up
appetite for risk assets such as
equities. “Lower US interest
rates are of deep interest to
Microsoft unveils own chips to reduce dependence on competitors
FROM PAGE 1
Engineers at its Redmond cam-
pus, and those in its multiple
Centres of Excellence (COEs)
around the world including
India, are currently collaborat-
ing to test these chips to gauge
how they work with custom-
ized server boards and tailor-
made server racks that fit inside
existing Microsoft data centres.
“Microsoft is building the
infrastructure to support AI
innovation, and we are reimag-
ining every aspect of our data
centres to meet the needs of our
customers,” said Scott Guthrie,
executive vice president of
Microsoft’s Cloud + AI Group.
According to Rani Borkar,
corporate vice president for
Azure Hardware Systems and
BJP win at the hustings next
year and the only other nega-
tive overhang remains the
Hamas war.”
Arora expects the next year
to be better for investors if the
war doesn’t widen into a
regional conflict.
He expects lower interest
rates in the US to translate into
lower bond yields and reverse
FPI outflows from emerging
markets. Though FPIs have
invested ₹94,555 crore in the
calendar year to date, they’ve
sold ₹53,732 crore of Indian
Infrastructure (AHSI), Microsoft
“wants to infuse AI into every
experience and workload”.
Insisting that while Micro-
soft is “known as a software
company”, “we are a systems
company”, she elaborated that
the “building blocks” of a sys-
tems company include “serv-
ers, silicon, data centres and
networking”. Borkar also
underscored the importance of
expanding industry partner-
ships, highlighting that Micro-
soft is now working with both
Nvidia and AMD to develop AI
chips in a bid to give “options to
our customers”.
For instance, Microsoft’s NC
H100 v5 Virtual Machine (VM)
Series has been built for Nvidia
H100 Tensor Core GPUs,
“offering greater performance,
The BSE’s benchmark Sensex
closed at 65,675.93. REUTERS
shares since September. They
are also sitting on a huge short
position in the Nifty and the
Bank Nifty index futures—at
147,443 contracts as of 13
November compared to
reliability and efficiency for
mid-range AI training and gen-
erative AI inferencing (a sys-
tem’s ability to make predic-
tions from new data)”. The
company will also be adding
the AMD MI300X accelerated
VMs to Azure. The ND MI300
virtual machines are “designed
to accelerate the processing of
AI workloads for high-range AI
model training and generative
inferencing, and will feature
AMD’s latest GPU, the AMD
Instinct MI300X”. Microsoft is
simultaneously designing sec-
ond-generation versions of the
Azure Maia AI Accelerator
series and the Azure Cobalt
CPU series.
“We have visibility into the
entire stack, and silicon is just
one of the ingredients,” Borkar
the benchmarks was aided by
the covering of these shorts,
according to Rohit Srivastava,
founder of IndiaCharts.
When FPIs begin short cov-
ering, they have to buy back
the contracts they sold earlier
to close them out, fuelling a
rise in stocks. Wednesday’s
data on the open interest was
not available till press time. On
Wednesday, FPIs bought
shares worth ₹550.19 crore
and local institutions ₹609.82
crore. Investor wealth rose by
₹3.33 trillion.
Sam Altman, CEO, OpenAI.
said. The “ingredients” include
Azure Boost, a system that
makes storage and networking
faster by taking those processes
off the host servers on to pur-
pose-built hardware and soft-
surged to a record high of
12,894.85 on retail buying,
analysts said. The NSE
advance decline ratio stood at
3:2. The rupee gained 19 paise
to close at 83.14 while the
10-year benchmark govern-
ment bond yield dipped 6
basis points to 7.22%.
The Nifty’s gains were led by
tech stocks such as LTI Mind-
tree and Tech Mahindra,
which gained 2.7-3.75%, and
auto scrips like Tata Motors
and Eicher Motors which
gained 2.8%-5.6%.
ware. As an example, the Maia
100 AI Accelerator has also
been designed specifically for
the Azure hardware stack,
according to Brian Harry, a
Microsoft technical fellow
leading the Azure Maia team.
The market opportunity for
AI chips is huge. According to a
22 August note by research
firm Gartner, semiconductors
designed to execute AI work-
loads will represent a $53.4 bil-
lion revenue opportunity for
the semiconductor industry in
AFP 2023, an increase of 20.9%
from 2022.
Alan Priestley, vice presi-
dent Analyst at Gartner,
attributes the growth to the
developments in generative AI
and the increasing use of a
wide range AI-based applica-
T
he rupee appreciated 21
paise to close at 83.12
(provisional) against the
US dollar on Wednesday as the
American currency retreated
from its elevated levels after
the US inflation came lower
than expected.
A firm trend in domestic
equity markets and risk-on
sentiment also supported the
local unit, forex traders
informed.
The rupee gained as the
American currency weakened
after US Inflation eased to its
tions in data centres, edge
infrastructure and endpoint
devices that require the
deployment of high-perform-
ance GPUs and optimized
semiconductor devices. Gart-
ner predicts that while AI
semiconductor revenue may
touch $67.1 billion in 2024, AI
chips revenue may more than
double the size of the market in
2023, reaching $119.4 billion,
by 2027.
The explosive growth of AI
and generative AI has already
transformed Nvidia’s graphics
processing units, or GPUs,
pushing the company’s market
capitalization to more than $1.2
trillion. Jensen Huang, Nvidia’s
co-founder, president and
chief executive, has been pro-
moting ‘accelerated comput-
exchange, the rupee opened at
83.03 and finally settled at
83.12 against the greenback,
registering a gain of 21 paise
from its previous close.
During the day, the local
unit witnessed an intraday
high of 83.01 and a low of
83.19.
On Monday, the rupee
declined by 5 paise to settle at
its all-time low of 83.33 against
the American currency.
The forex markets were
closed on Tuesday on account
of Diwali-Balipratipada.
ing’, a term that blends CPUs,
GPUs and other processors
such as data processing units
(DPUs) “together as equals in an
architecture sometimes called
heterogeneous computing”.
Nvidia has also been able to
move beyond providing GPUs
to just the gaming sector and
leveraging the GPU architec-
ture to create platforms for sci-
entific computing, autono-
mous vehicles, robotics, metav-
erse and 3D internet
applications among others.
Nvidia’s GPUs feed industries
that are equally varied, from
airports to food and OpenAI’s
ChatGPT, which has become
the poster boy of Generative AI.
The reporter was in Seattle,
Washington, at the invitation of
Microsoft.
LIVEMINT.COM CORPORATE ThursDay, 16 November 2023
New Delhi 05

Wait for biz loan pickup could Bajaj Fin asked to halt TCS forcing
get longer on limited capex transfers of
Shayan Ghosh
shayan.g@livemint.com
MuMBAi
Lending pipeline to corporates
Year-on-year growth in credit to industries and to individuals
lending via 2 products 2K staffers,
says Nites
35
30.4 Devina Sengupta

A
Industries Retail (in %)
pick-up in bank loans 30
to businesses could be devina.sengupta@livemint.com
further delayed, ana- 25
20.7 RBI will review supervisory restrictions after Bajaj rectifies deficiencies MuMBAi
lysts said, as lenders await a 20

N
stronger and more broad- ascent Information
based recovery in investments 15 Gopika Gopakumar Technology Employ-
that are being driven by a 10 7.1
gopika.g@htlive.com ees Senate (Nites),
handful of sectors amid weak 5.7 MuMBAi which looks into the grievan-
5
capital expenditure. ces of IT employees, has filed a

T
Banks have been awaiting 0 he Reserve bank of India (RBI) complaint with the labour and
their turn to finance Indian has barred Bajaj Finance Ltd employment ministry against
-5
corporates—at least the Jan 2020 Sep 2023 from lending under its eCOM Tata Consultancy Services
stronger businesses which, Source: RBI
and Insta EMI Card products. (TCS) alleging it is “forcing”
despite managing to negotiate “This action is necessitated more than 2,000 employees to
a finer pricing, are seen as due to non-adherence of the company to transfer to different cities
more creditworthy with grew 12.4% y-o-y in the 18.3%, crude oil (14.1%), iron the extant provisions of digital lending without proper notice or con-
strong parental support. three months through Sep- and steel (8.9%), capital goods guidelines of Reserve Bank of India, par- sultation.
Although banks are more tember, corporate loans (8.6%) and retail (19%). ticularly non-issuance of key fact state- Nites has requested the
willing than before to open the increased 6.6%. On the other hand, power, ments to the borrowers under these two ministry to examine if there
lending pipeline to corporates, “We have got undisbursed telecom, automobile and lending products and the deficiencies in were any violations of labour
fresh projects are few and far portions of some sanctioned ancillaries, healthcare and tex- the key fact statements issued in respect of codes and, if so, take action
between. (but) unavailed limits of term- tile were among those where other digital loans sanctioned by the com- against India’s largest IT servi-
Bank loans to industries loans. In term-loans, we have growth lagged the sample pany,” the RBI said in a press release on ces company.
grew 7.1% year-on-year (y-o-y) seen that availment has average. Wednesday. “We urge the ministry of
in September as compared improved by almost about 100 “Whether you look at bank The regulator said it will review the labour and employment to
with a 30.4% growth in retail basis points in this quarter as credit or the data on corporate supervisory restrictions after the com- take immediate action to
loans on a larger compared to the bond issuances, the picture is pany rectifies deficiencies to the RBI’s sat- Shares of Bajaj Finance fell 1.8% to ₹7,223 apiece during trade on Wednesday, when investigate TCS’s transfer
base, as per data Bank loans to previous quar- not too impressive from the isfaction. Sensex and Nifty jumped more than 1%. BLOOMBERG practices and take appropriate
from the Reserve industries grew ter,” Khara told corporate investment point of According to the RBI’s digital lending action against the company.
Bank of India 7.1% y-o-y in Sep analysts on 4 view. Bank credit has largely guidelines released last year, a lender customers during the second quarter, season largely behind, the impact will be We also request the ministry
(RBI). Bank credit as compared with November. been retail in nature not must issue a ‘key fact statement’ to the with 8% of this new customer addition limited. to formulate new policies and
to large industries Meanwhile, an towards large manufacturing borrower at the time of giving a loan. This coming from the EMI card, according to Separately, we expect the RBI to impose regulations to protect IT
a 30.4% growth in analysis of data
showed a growth and corporate bond markets would have details of the annualised rate the presentation. higher risk weight or standard asset provi- workers from unethical trans-
of 6.1% in the retail loans on a on gross fixed are being dominated by finan- charged to the borrower of a digital loan, “The Insta EMI card was the first kind of sions on small ticket personal loan, which fer practices,” said Harpreet
same period. larger base assets of compa- cial services firms,” said the recovery mechanism, and details of ‘buy now pay later (BNPL)’ card issued by should impact Fintechs and select NBFCs/ Singh Saluja, president of
Although the nies by Bank of Madan Sabnavis, chief econo- the grievance redressal officer any non banking financial com- Banks,” said Anand Dama, head BFSI, Nites.
merger of erst- Baroda showed mist, Bank of Baroda. among other things. pany. The RBI had given per- Emkay Global Financial Services. Nascent Information Tech-
while Housing Development that while the stock of fixed While bankers are hopeful Bajaj Finance’s Insta EMI mission to Bajaj Finance to Shares of Bajaj Finance fell 1.8% to nology Employees Senate said
Finance Corp. (HDFC) with assets grew 3.6% during the
HDFC Bank aided the retail April-September period and
of a pick-up, Sabnavis said,
corporate credit demand is not
card allows customers to
shop at zero-cost EMIs. 3.58
new customers
mn offer an EMI card with zero ₹7,223 per share during trade on Wednes-
interest,” said a credit card day, when Sensex and Nifty jumped more
it has received more than 180
complaints from TCS employ-
numbers, individual loans was higher than the same broad-based and for growth to With this EMI card, cus- expert on condition of ano- than 1%. ees. Although the company
would have grown 18.2% with- period last year, it was still sub- pick up such demand should tomers get a pre-approved were added in Q2 nymity. “The company is already issuing key did not respond to Mint’s que-
out it. dued. The growth was 7.9% on be more secular. loan limit of up to ₹2 lakh by Bajaj Finance Analysts believe that Bajaj fact statement (‘KFS’) for the loans booked ries, an executive called said
Dinesh Khara, chairman, a y-o-y basis. India also saw a decline in that can be used at 150,000 Finance’s growth will take a hit under the above mentioned two lending the transfers were “routine” .
State Bank of India (SBI) is The analysis considered the the value of new project online and offline partner stores following this ban. The NBFC products. However, based on the con- The letter dated 15 Novem-
hopeful of corporate loan gross fixed assets and capital announcements at ₹1.5 trillion across 4,000 cities. had seen a 29% year-on-year growth cerns raised by the Reserve Bank of India, ber stated that Tata Consult-
growth in the coming quarters work in progress of 1,420 com- in the September quarter, as There are 42 million EMI cards in force in assets under management under its the company will undertake a detailed ancy Services’ transfer policy
and has seen some signs of panies as an indicator of capi- against ₹6.7 trillion in the pre- currently, according to its investor pre- urban B2C business to ₹58,178 crore at the review of the key fact statement and was “causing immense hard-
improvement in utilization of tal expenditure (capex). vious three months and ₹5.3 sentation for the quarter ended Septem- end of September 2023. implement requisite corrective actions to ship to employees and their
term-loans and working capi- Industries where fixed trillion in the September quar- ber, higher 22% year-on-year. In the sec- “We believe the Reserve Bank of India’s the satisfaction of the RBI at the soonest. families, who are being
tal that have already been assets grew faster than the ter of FY23, showed data from ond quarter, it acquired over 4.2 million suspension on Bajaj’s fresh disbursement We do not expect this action to have a uprooted from their homes
sanctioned. overall y-o-y growth rate the Centre for Monitoring EMI cards through the digital channel. via Insta EMI Card and Ecom will have an material financial impact on the com- and communities at the whims
While SBI’s total loan book included infrastructure at Indian Economy (CMIE). Bajaj Finance added 3.58 million new impact on the business, but with festive pany,” Bajaj Finance said in a statement. of the company”.

Two Dabur DS Group luxury arm to invest up Jupiter sets ₹1K cr for wagons, electric CVs
subsidiaries to ₹200 crore to expand portfolio Subhash Narayan operations attached with its

dismissed Varuni Khosla growing hospitality division.

subhash.narayan@livemint.com
New Delhi
wagon manufacturing facility
at Bandel in West Bengal and
setting up a new foundry in
from US
J
varuni.k@livemint.com The company, so far, has upiter Wagons Ltd (JWL) Jabalpur in Madhya Pradesh
New Delhi focused on luxury menswear plans to invest about ₹1,000 near its existing wagon facility.
brands, but its next set of devel- crore over 18 months to “We have currently around
lawsuit
D
S Luxury, a subsidiary of opments will focus on women’s expand its wagon manufac- 25 to 30% share in the wagon
DS Group, is planning to luxury wear as well as other for- turing business, operationalize market, and we expect to retain
invest up to ₹200 crore mats of luxury retail, to possibly and expand recently acquired that kind of market share.
Suneera Tandon in the coming years to intro- include multi-brand outlets. Stone India, make acquisitions Again, on the focus is also a lot
suneera.t@htlive.com duce more luxury brands to the The company first brought and start making electric com- on the private business there.
New Delhi Indian market. Currently, it Tom Ford to India in 2010. In mercial vehicles, managing We have more than about 50%
runs menswear brands such as 2021, acquired the business of director Vivek Lohia said. market share there. So, [we

D
abur India’s two over-
seas subsidiaries have
been dismissed from a
lawsuit in the US investigating
an alleged link between cer-
tain hair relaxer brands and
ovarian and uterine cancers
and other associated health
problems.
A third international sub-
sidiary, Namaste Laboratories
that sells ethnic hair care
products remains a defendant
in these cases along with other
industry players such as
L’Oreal, SoftSheen-Carson,
Luster Products Inc, and Avion
Industries, among others.
In a filing to the exchanges
late on Wednesday, the home-
grown consumer goods com-
pany said Dabur International
Ltd and Dermoviva Skin
Essentials Inc have been dis-
missed as defendants in fed-
eral cases in the US.
“We wish to inform that
Dabur and Dermoviva have
been dismissed as defendants
in federal cases, which were
consolidated as a Multi-Dis-
trict Litigation, also referred to
as MDL, before the United
Berluti, Tom Ford, and Brioni
as well as Brunello Cucinelli in
luxury malls across the capital.
Ritesh Kumar, the com-
pany’s promoter, in an inter-
view, told Mint that India’s lux-
ury market is entering a crucial
phase and is expected to wit-
ness rapid growth in the next
decade. The earmarked spends
will be directed towards bring-
ing newer brands into the
country, with more focus on
brands in the luxury women-
swear side, for which some
deals are currently being inked,
he said. Last week, the tobacco-
to-FMCG company announced
the launch of its first Brioni
store in India in Delhi’s The
Chanakya.
“Global luxury markets, till
World Cup 2023 is best ever in terms of quality and viewership: ICC
Gaurav Laghate
gaurav.laghate@livemint.com
MuMBAi
Ritesh Kumar, promoter at
DS Group.
now, had considered India to
be a very small, one- or two-
store market, but this is where
things will change now. Luxury
houses must understand that
the Indian market has evolved
and there is now a huge poten-
tial, especially if they adapt to
the local scenarios, such as
being flexible to having more
high street stores, make more
locally appreciated products
and localize their marketing,”
he said.
DS Group’s primary inter-
ests are in FMCG and tobacco,
but it also has a large retail and
ments and underlying metrics.
Talking about fan engage-
ment, Dahiya said that as a piv-
otal metric for assessing suc-
an existing luxury player that
was looking for an exit from
brands such as Berluti and
Brunello Cucinelli. Berluti, an
LVMH-owned company, he
said, has done exceptional busi-
ness for the group as well.
Typically, luxury companies
that come to India choose to
enter the market either
through a master franchise
agreement with a local partner
or a joint venture. “A large
number of brands are looking
to come to India now like never
before. The existing luxury
supply in malls can only do a
certain volume of business.
There could also be potential in
creating other formats, such as
multi-brand luxury outlets,”
he said.
Jupiter also will start making
railway wheel sets in an attempt
at backward integration of its
wagon business. It recently
ventured into foundry opera-
tions and braking systems.
Jupiter Wagons will also
launch a ₹700 crore qualified
institutional placement (QIP)
before the end of the current
fiscal, supplementing ₹125
crore it raised in an earlier QIP
in May that was used to fund
the acquisition of engineering
firm Stone India, moderniza-
tion and expansion of wagon-
making capacity.
JWL last year acquired Stone
India, a maker of railway brak-
ing and engineering systems,
for about ₹25 crore in a bank-
ruptcy rescue. Its plant has
Vivek Lohia, managing director, Jupiter Wagons Ltd. will] continue with that kind of
dominance in that space.
remained shut for over five announced plans to secure Acquisitions are also being
years. about 100,000 wagons over looked at, but it’s too prema-
“There is buoyancy in Rail- three years to expand its freight ture at this stage,” Lohia said.
ways as well as orders from the operations that has become a Braking systems is expected
private sector this major revenue to be a ₹200 crore operation
year that is push- Jupiter Wagons generator. Also, from the next fiscal year, and
ing us to expand will also launch a with record capex half its production of roughly
our own opera- ₹700 cr qualified allocation for ₹100 crore is expected from
tions. We will be institutional Railways this year, exports. Jupiter has also tied up
spending about
placement before there is expecta- with railway engineering and
₹1,000 crore over tion that more consulting firm RITES for
next 18-20 the end of the orders may flow export of wagons to Africa.
months so that we current fiscal in. In all, 150,000 Another big investment for
become 1,000-car wagon tenders are JWL would be in making elec-
(wagons) per expected from tric vehicles. “We expect that
month company by FY25 from Railways, of which tenders for Arai (Automotive Research
our present capacity of making 72,000 have already been Association of India) certifica-
700 wagons per month,” Lohia completed. tion for our commercial EV
said. Jupiter’s expansion involves would be available by Decem-
Railways last year had strengthening its foundry ber or January,” Lohia said.
sey+Hotstar for a live stream clients joining across televi- then you have to have a front
anywhere in the world. sion and digital platforms. end for actually carrying the
“On digital, we’ve seen Dahiya dismissed concerns content. And that’s where our
records being broken twice in about digital platforms over- partners become really cru-

States District Court for the
Northern District of Illinois,
for lack of personal jurisdic-
tion as neither Dabur nor
Dermoviva manufactured,
marketed, distributed or sold
hair relaxer products in the
US. Hence, now only Namaste
remains as a defendant in
these cases along with many
other industry players such as
L’Oreal, SoftSheen/Carson,
Luster Products Inc, Avion
Industries, Inc.; PDC Brands
(Parfums de Coeur, Ltd), Rev-
lon etc,” the company said.
Dabur clarified that the law-
suit does not concern any
Dabur brand or product and
that Dabur India Ltd is not a
party to these suits.
T
he ongoing Cricket
World Cup 2023 has
delivered on all the key
metrics for the International
Cricket Council (ICC), be it fan
engagement or revenue from
sponsorships, said a top official
of world cricket’s governing
body.
Talking to media before the
first semi-final, Anurag
Dahiya, chief commercial offi-
cer of the ICC spoke about the
commercial parameters that
define the success of the ongo-
ing ICC World Cup and the
evolving landscape of cricket.
He said the ICC’s approach
extends beyond immediate
revenue, focussing on long-
term commercial arrange-
cess, in-stadia attendance has
exceeded expectations, with a
notable surge after a relatively
soft start. The millionth spec-
tator passing through the
turnstiles marked a significant
achievement, potentially mak-
ing this World Cup the best-at-
tended in history.
“We are over the moon with
what we’ve achieved, honestly.
No doubt that as a tournament,
it had a little soft start and
some of that is bearing in mind
that India has large stadiums.
The initial non-India games
looked not very well-attended,
but very quickly that changed
and that’s, I think, a testament
to some of the fantastic cricket
we’ve seen, especially non-In-
Dahiya added that its media rights holder, Disney Star also
witnessed a substantial uplift in commercial revenue.
dia teams, with very competi-
tive, very good cricket, which
happened and it just roped in
people.”
He also expressed satisfac-
AFP
tion with television viewer-
ship, closing on 500 million by
the 34th game, while pointing
to a record-breaking 44 mil-
lion concurrent users on Din-
terms of concurrency and we shadowing television, assert- cial. Disney Star did a fabulous
are hoping that those records ing that the distinction is job with Maxview in the way
will get broken b e c o m i n g they integrated that into Hot-
two more times, if Dahiya also increasingly chal- star and then also went out and
not at least once, expressed lenging. communicated that offering to
in the remaining satisfaction with Talking about their users through a commu-
three games as television Maxview, the ver- nication campaign,” Dahiya
well… Even con- tical video feed on added.
viewership,
currency on TV Disney+Hotstar, Addressing concerns about
has been amazing closing on 500 mn Dahiya said it, the relevance of One Day
with 80 million. I by the 34th game proved to be a sig- International (ODI) cricket,
don’t think we nificant chunk of Dahiya stated, “News of the
could have asked digital viewer- demise of ODI cricket has been
for more. I think, if anything, ship. grossly exaggerated.” He
it’s only exceeded expecta- He commended Star for emphasised the unique role
tions commercially.” integrating Maxview into Hot- each format plays, with ODIs
He added that its media star and effectively communi- testing cricketers differently
rights holder, Disney Star also cating the offering to users. from T20s. The ODI World
witnessed a substantial uplift “It’s one thing us producing Cup, with its nearly 50-year
in commercial revenue, with it, investing in that production history, remains a coveted
around 50 new categories or and making a vertical feed, but prize for cricketers.
06 ThursDay, 16 November 2023
New Delhi CORPORATE LIVEMINT.COM

‘Care Health issued Esops to Int’l airlines see scope Siemens to

Saluja after Irdai rejection’ buy 18% in
FROM PAGE 1

from date of options grant, or a

in India as aviation hub India arm
for €2.1 bn
Care IPO, whichever is earlier.
“The remuneration PTI
includes perquisite value of feedback@livemint.com
Esops exercised only, and not India can be a hub connecting Africa and Middle East for foreign airlines New DelhI
of unexercised Esops, as the

G
gain (if any) accrues only at the erman conglomerate
time of exercise of Esops,” Anu Sharma Siemens Aktiengesell-
Venugopal said. anu.sharma@livemint.com schaft (Siemens AG)
Venugopal also said these New DelhI will acquire an additional 18%
options were allotted to Saluja stake in its India unit for €2.1

F
in her capacity as a Religare oreign airlines have always seen billion ($2.28 billion), the com-
employee, and not as a Care Care Health Insurance is seen as the crown jewel of REL. MINT India as a market that feeds their pany announced on Wednes-
Health Insurance employee, hubs, but that seems to be chang- day. The move will help the
and therefore, the grant of ₹4,183 crore at the time. parency in the insurance sec- ing with key foreign carriers from firm raise its stake in the India
options did not require the Care said that to attain clar- tor and discipline in the spend- Asia Pacific seeing India becoming unit, Siemens Ltd, to 69% from
insurance regulator’s sanction. ity, “legal opinions were ing to protect the interests of an aviation hub, which can be used to con- 51% at present, according to an
A 4 June, 2022 Care Health sought for and obtained from the policy holders,” he said. nect Africa and the Middle East from their official statement.
AGM notice said that in May two renowned individuals Kumar said Care Healthcare part of the world. Siemens AG will acquire the
2022, the Insurance Regula- who possess in-depth knowl- has taking a different reading Senior executives from Japan Airlines stake from Siemens Energy,
tory Development Authority edge and experience in the rel- on the compensation matter and Thai Airways said they see the poten- whose stake in Siemens Ltd will
(Irdai) had denied approval for evant regulatory and company compared to Irdai. tial of India becoming a hub but it may take fall to 6% from 24%. Siemens
Saluja’s options under the law aspects”. “Care has adopted a very some time for this to become a reality. AG has taken steps to support
Remuneration of Non Execu- Care Healthcare sharehold- defensible technical view on “India has the potential, I believe so. It is the stability of Siemens Energy
tive Directors of Private Sector ers then approved the Esops. the matter qua executive remu- possible when one looks at connections AG and accelerate separation in
Insurers Guidelines, which On Wedneday, Venugopal also neration. It appears that Irdai is towards the Middle East and Africa. While India, the statement said.
permit payment of only profit- cited a Irdai 2016 notification looking at the substance of the it is still early for a hub to be established, I Specifically, Siemens inte-
related commissions of Rs 10 which states “that for the arrangement vis-a-vis the roles think it is possible in the future,” Shimizu Senior executives from Japan Airlines and Thai Airways said they see the potential in nds to enter into a share pur-
lakh per annum chairman of the and of the person in question, Shinichiro, executive vice president, Japan India becoming a hub but it may take some time for this to become a reality. BLOOMBERG chase agreement with Siemens
for non-execu- The question board, remunera- and in doing so, has equated Airlines, told Mint. Energy to acquire an 18% stake
tive directors of of whether t i o n m a y b e the role of the person to that of It is worth noting that the government is seeing higher traffic of passengers flying limelight as foreign airlines seek partner- in Siemens Ltd (India) from Sie-
private sector Saluja’s options decided by the a director. Essentially, one is working on a plan to develop India as a hub from one part of the world and transiting ships with the carrier in anticipation of its mens Energy for €2.1 billion in
insurers. Irdai’s grant required board of directors looking at form and the other for connecting international traffic. The via Delhi, Mumbai, Hyderabad, and Kolk- potential to create a large network of non- cash, it said.
observation was of the respective claims substance is different government is in the process of hiring con- ata for international cities. stop long-haul flights from India. On the completion of this
that the role of
Religare company.” Irdai from the form,” Kumar said. sultants to suggest ways to make all airports IndiGo, India’s largest domestic airline, “We have gone from the ugliest guy that deal, Siemens Energy’s stake in
Saluja as non-ex- shareholder chairperson Meanwhile, the question of in metro cities suited for transit passengers has seen a rise in such transit traffic via ever danced to probably the most popular, Siemens Ltd will decline to 6%
ecutive chairper- approval remains Debasish Panda whether Saluja’s options grant with an intent to reduce time for passenger Indian airports on routes such as Dubai- and many airlines are seeking partnerships from 24%, it added.
son was equiva- did not immedi- required Religare shareholder transferring from one plane to Bangkok, Bahrain-Phuket, Kuwait- because they see the benefit in connecting With the intended acquisi-
lent to a non-ex- ately respond to a approval remains. Religare another. Phuket, Sharjah-Jeddah, directly with the carrier from which most of tion, Siemens and Siemens
ecutive director. request for comment. owns 67% of Care Health The stakeholders have Dhaka-Riyadh, and Kathman- the source traffic is coming. There are 37 Energy will accelerate unbun-
Subsequently, the Care Ritesh Kumar, partner at Insurance. In response to a
board told shareholders that consultancy firm BDO said that question on whether Care
assessed the practices at air-
ports like Heathrow in Lon- 970
Number of aircraft
du-Far East, among other million people in the diaspora, we don’t
destinations. serve them particularly well. That is going
dling the business activities of
the Indian subsidiary Siemens
Irdai approval was not required. executive compensation is reg- Esops grants were explicitly don, Dubai, Doha and Singa- Massive aircraft orders to change,” Mint reported quoting AI’s Ltd, the statement said.
“The initial request made to ulated by insurance regulators approved by Religare share- pore and are trying to put the Air India, IndiGo such as 970 aircraft by Air CMD Campbell Wilson. The purchase price reflects a
Irdai seeking grant of Esops to to protect policyholder inter- holders, a Religare spokesper- best practices in action at ordered in 2023 India and IndiGo in 2023 and India’s passenger growth continues to customary discount of 15% on
Dr Rashmi Saluja was not ests. “It’s not uncommon in son messaged over WhatsApp, Delhi with IndiGo and Air India growing demand potential in attract global airlines, that see a business in the five-trading-days volume-
required to be made at all, as she India for regulators to have “Dr Rashmi Saluja’s perquisite as the lead carriers for short and India is adding to this change in the country’s passenger growth. weighted average price before
was being granted Esops in her oversight of the executive for CHIL (care Health Insur- long-haul connectivity. perception. “India is always in my radar, in my net- the day of signing, it stated.
capacity of an employee of REL compensation. From a risk-re- ance Ltd) Esops is part of The government has also in the past Japan Airlines hopes to establish a code- work. We fly to a lot of Indian cities. There “Together, we shaped a solu-
(as clearly specified in approval ward point of view, the regula- remuneration approved by restricted any increase in bilateral rights to share relationship with the integrated Air are a lot of connecting passengers from tion that is in the best possible
granted by Kedaara and Trishi- tors have had a view that exces- REL shareholders.” ensure that Indian carriers can increase India. “We have a codeshare with Vistara India to Australia, to Kuala Lumpur. Yes, interests of all parties and
khar (a Kedaara vehicle)”. sive incentive pay purportedly InGovern has argued that their presence in international skies—that but it has been integrated with Air India, so there is potential. From India, we see a big accelerates the separation of
Kedaara had acquired 6.39% encourages excessive risk-tak- Care options were not explicily strategy has paid off. we hope to have the same relationship with signal sometimes even to change the air- Siemens and Siemens Energy
in Care Health Insurance in ing by executives. Regulating declared to REL shareholders Since covid-related restrictions eased the integrated Air India,” Shinichiro added. craft from narrow-body to wide-body,” in India,” said Roland Busch,
2020 valuing the insurer at executive pay ensures trans- and no approval was sought. across borders, Indian airlines have been Air India, meanwhile, is in the global Chai Eamsiri, CEO Thai Airways, said. CEO of Siemens AG.

Recruitment Govt works on plan to keep lid Trade deficit balloons to record in Oct
sector plods on food prices over next year FROM PAGE 1 rise in trade deficit, while capi-

through
a gloomy
quarter
FROM PAGE 1
starting September is when
retail firms hope that the hir-
ing numbers will tide them
over. But those hopes were
dashed this year.
“Retail hiring was down by
20% for middle and senior
management in the fiscal third
quarter, compared to last year.
The hiring uptick during the
festive period took place in the
temporary staffing section, but
otherwise, it was muted,” said
Shiv Agrawal, managing
director of ABC Consultants.
Retail and packaged consumer
goods firms rolled out marginal
hikes to their sales teams and
tapped into smaller towns for
more affordable talent this fes-
tive season. ABC Consultants
estimates its IT hiring numbers
will close at 50% lower by
December versus last year.
In a gloomy scenario for hir-
ing, manufacturing offers
some bright spots. “There is a
marginal 3-5% increase in the
manufacturing sector pro-
pelled by the auto industry
when compared to the third
quarter of 2021-22. Since the
products for the festive season
are made a few quarters ear-
lier, the hiring when com-
pared to the first and second
quarter is down by at least
10-12%,” said Aditya Narayan
Mishra, the chief executive of
recruitment company CIEL
HR Services.
The banking sector, which
had seen high attrition of over
40% in marketing and sales
divisions, is also preferring to
recruit from campuses for tal-
ent in digital initiatives than
hire from the market. Hiring
from the market is at least 30%
more than building a talent
pipeline from within.
Lohit Bhatia, president,
workforce management, at
Quess Corp said in the BFSI
sector, hiring mandates are
similar to last year.
FROM PAGE 1
prices in the wake of an une-
ven monsoon, Singh said the
ministry was fully prepared.
He said the assessment of
domestic production and
imports, estimation of buffer
stock and strategy and timing
of its deployment were part of
the preparation. These, he
said, are done scientifically to
ensure maximum impact.
Singh said the government
was taking extra steps by way
of abundant caution, although
crop output estimates were
confidence-inspiring. Discus-
sions are already on with
Mozambique for seamless
supply of pulses.
Additionally, “we are trying
to diversify risk in terms of
imports. For urad, there is 99%
dependence on Myanmar.
Therefore, we are in talks with
Brazil, Argentina and other
markets. Brazil agreed to look
at urad production because
they have huge land availabil-
ity, and they are agro-climati-
cally conducive to growing it.
For tur, we are exploring entire
The US economy’s elusive soft landing seems to be coming into view
FROM PAGE 1
“If one was looking for a clear
sign of a soft landing, the disin-
flation inside the (consumer
price index) is one unavoidable
and unmistakable sign that the
U.S. economy has proved far
more resilient than anyone
anticipated at the outset of
2023,” said Joseph Brusuelas,
chief economist at RSM US.
Until inflation is back to 2%,
the Fed is unlikely to declare
victory. “We’re still very
focused on the first question,
which is: Have we achieved a
stance of monetary policy that’s
sufficiently restrictive to bring
inflation down to 2% over
time?” Fed Chairman Jerome
Powell told reporters Nov. 1.
Yet investors seem prepared
to declared victory, even if the
Fed isn’t. Futures markets put
East African nations, especially items to consumers will be
industry. The deficit was a
higher than a Reuters poll of
tal inflows, which have been
dampening during the last two
years, may also take time to
Ethiopia and Tanzania. Both considered as a template for
sides’ agricultural ministries quick cooling of prices in
economists that had projected
it at $20.5 billion.
pick up due to higher interest
rates, said Biswajit Dhar, Pro-
are in talks to identify the right urban centres, he said. Experi- Goods imports in October fessor, Centre for Economic
variety.” he added. ence has shown that this is
Singh asserted there is no more effective than interven-
swelled to $65.03 billion as
gold imports rose by 95% on an
Studies and Planning at Jawa-
harlal Nehru University.
constraint on deploying funds tion at the wholesale level, as at annual basis to $7.23 billion, The local currency fell to a
as the government is commit- least some traders may have Reuters reported, citing a com- lifetime low of 83.5 against the
ted to keeping prices low. the capacity to hoard. merce ministry official. dollar on 10 November. It has
“Resources is never an “Not all traders are bad. There The huge rise in gold since recovered to close at 83.1
issue. The government is very is a small fraction of traders who imports during October was Goods imports in October swelled to $65.03 billion as gold on Wednesday.
committed to take advantage of due to the Diwali festival in imports rose by 95% on an annual basis to $7.23 billion. BLOOMBERG “If we keep piling on our
keeping prices ‘The Centre was situations, indulge November, a season when trade deficit, borrowing and
low.” The idea is taking extra steps in speculation and people usually purchase gold ing this fiscal year have been ter, according to commerce terms of borrowing will
to use resources by way of caution, hike prices. We as it is considered auspicious. hit by a slowdown in global ministry estimates. The actual become tougher. Though,
to manage prices although crop have to be tough Last year, Diwali was cele- growth, especially in advanced data will be released by the going ahead, the trade deficit
efficiently using against them and brated in October. economies, they bucked the Reserve Bank of India later. outlook will depend on how
output estimates they have to get
technology, “Gold imports have risen by trend to grow 6.3% in October According to the ministry, we manage our manufacturing
buffer stock and were confidence- the message that if over 90%, which may push to $33.57 billion. services exports sectors. At present, the inabil-
retail mecha- inspiring’ such practices are jewellery exports in the next “We are seeing Services exports in October are ity of the manufacturing sec-
nisms, he said. resorted to, not few months, but the rising that green shoots in October are projected to grow tors to find higher exports is a
The govern- only the govern- imports indicates that profil- are stabilizing. projected to grow 13.4% to $28.7 bil- cause of concern. We have to
ment’s plan entails prepared- ment can take action, but we ing of imports needs to be This is happening 13.4% to $28.7 bn lion while imports find ways to improve our
ness for timely action, espe- also have the buffer (stocks to evaluated to find the impact of despite a fall in
while imports are are estimated to
exports,” Dhar added.
cially when circumstances deploy). For that messaging, you it on manufacturing and econ- commodity pri- rise 6% to $14.3 India’s top merchandise
warrant strong measures such don’t require lakhs of tonnes,” omy,” said Ajay Sahay, director ces,” said com- estimated to rise billion. Thus, the export destinations during
as export curbs in the interest Singh said. “Through retail out- general of Federation of merce secretary 6% to $14.3 bn overall trade defi- April-October 2023 period
of price stability and availabil- lets, consumer engagement is Indian Export Organisations. Sunil Barthwal at cit (comprising were the US, UAE, Nether-
ity in the domestic market, a direct. Although it is logistically Robust spending during the a press briefing. “If goods and servi- lands, China and the UK, while
consideration that other coun- challenging given the size of the festival and marriage season green shoots stabilize (further), ces) is estimated at $17 billion, top import sources were
tries also have. Also, direct country, it is more effective,” pushed up non-oil imports 14% it augurs well for our exports.” up 17.6% from a year ago. China, Russia, UAE, US and
intervention at the retail level said Singh. from a year ago in October. On the other hand, India’s The Indian rupee is expected Saudi Arabia.
by selling pulses and other puja.das@livemint.com While Indian exports dur- services exports are faring bet- to be under pressure with the rhik.kundu@livemint.com
roughly 65% probability that expects spending will be 3% to point since April. Such an holds more exposed to unex-
the Fed will begin cutting inter- 4% higher this year than last, increase usually comes right pected shocks, said Jeremy
est rates by May, according to down from 5.4% in 2022 and before a recession. Schwartz, senior economist at
CME Group data. 12.7% in 2021. Shippers and The number of people filing Nomura. He expects a reces-
Meanwhile, other data over retailers say they’ll need to hire first-time jobless claims is sion next year.
the past few weeks point to an fewer seasonal workers this bumping along at historically Higher borrowing costs will
economy that is still healthy. year than in the low levels, a sign make it increasingly costly for
Rather than slow down this past. Rather than slow that employers businesses to refinance their
year, growth has sped up, to The October down this year, are still loath to lay debt, he said. Many small busi-
4.9% annualized in the third retail sales report, growth has sped off workers. But nesses are also scaling back
quarter, its fastest since the end to be published up, to 4.9% the number of their expansion plans. House-
of 2021. Economists expect Wednesday
annualized in Q3, people collecting hold finances are also getting
growth to slow to around 1% in morning, will unemployment more precarious. The share of
the final three months of the offer an early clue its fastest since benefits has newly delinquent credit card
year and about 1% in 2024. In the past 80 years, the US Fed has never managed to bring about this year’s the end of 2021 climbed for seven borrowers rose to 2% in the
Meanwhile, over the three inflation down substantially without sparking a recession. REUTERS holiday spending. straight weeks to third quarter of this year, higher
months through October, U.S. Economists sur- nearly 1.6 million than before the pandemic,
employers added an average of historical standards. has come out of savings, which veyed by the Journal see retail in the week ended Oct. 21, the according to the New York Fed.
204,000 jobs a month, a A big question is whether had been buttressed by pan- sales falling 0.2% in October highest since April, suggesting In such a fragile environ-
marked slowdown from ear- consumers, whose spending demic-era stimulus programs. from the previous month, after those unlucky enough to be ment, a sharp rise in energy pri-
lier in the postpandemic powered the recovery, can The saving rate fell to 3.4% in rising 0.7% in September. laid off are finding it harder to ces or a round of corporate
period but still above 2019’s keep it up. September from 5.3% in May. There are also early warning find a new job. defaults or bank failures, could
average of 163,000. The Consumer spending grew at One test will come during signs developing in the labor There’s also a risk that tilt the economy into recession
unemployment rate has ticked a brisk 4% annual rate in the this year’s holiday season. The market. The unemployment higher interest rates have made next year, Schwartz said.
up to 3.9% but remains low by third quarter. But much of that National Retail Federation rate is up half a percentage many businesses and house- ©2023 DOW JONES & CO. INC.
LIVEMINT.COM CORPORATE ThursDay, 16 November 2023
New Delhi 07

Rise and fall of Subrata Roy

Roy rose from a modest roadside salted snacks seller in UP to a billionaire media-to-realty business magnate
Anirudh Laskar of India’s 10 most influential busi- 1978. Thanks to his familiarity, many
anirudh.l@htlive.com nessmen by India Today magazine. small investors such as rickshaw pull-
MuMbaI And till 2013, Roy’s Sahara was the ers and tea stall owners invested in his
Indian cricket team’s sole official schemes in the hope of assured

I
In contrast to 34 films released in the IMAX format last year, in n the annals of Bengali literature, sponsor. income.
2023 it has been 39 titles, including six Indian films. BLOOMBERG Shankar is a noted name; most of Things quickly turned bad when, For over three decades, Roy’s busi-
his books are widely read. So, in in 2014, Roy was arrested for failing to nesses flourished as millions of small

IMAX sets sights on 2003, when the famed author

penned a 199-page book titled
Bangalir Bittyosadhana, Saharar
appear in the Supreme Court for a
contempt case arising from the non-
reimbursement of a ₹20,000 crore
investors poured money into Sahara’s
schemes, often perceiving Sahara as
a patriotic business group.

record-breaking Itikatha (Bengali’s financial aspira-

tions, Sahara’s history) with a photo of
the flamboyant business tycoon Sub-
rata Roy ‘Sahara’ on the cover, it was,
revenue in India expectedly, widely read, too. Part of
the reason for that, apart from
Shankar’s pedigree, was that it lever-
Lata Jha sent substantial growth com- aged Roy’s unworldly rise from a
lata.j@htlive.com pared to the pre-covid earnings modest road-side salted snacks seller
New DelhI of $15 million in 2019. of a brand called ‘Jaya’ in small-town
The company is also looking Gorakhpur, UP, to a media-to-realty
Subrata Roy.
businesses being accused of fraud
fund to small investors in Sahara
group companies who were duped
with promises of high returns in
dubious schemes. He was sent to judi-
cial custody in Tihar Jail, and released
on parole in 2017. Since then, his
health had been deteriorating.
Meanwhile, the Securities and
REUTERS Exchange Board of India (Sebi) was
struggling to disgorge the amounts
banned Sahara India Financial Corp., that were illegally collected from
Problems surfaced in 2008 and
mounted in 2012 when Sebi alleged
Sahara had cheated millions of inves-
tors through guaranteed Ponzi
schemes, which the company denied.
The Sebi ban on such pooling of
public funds in 2012 kicked off an era
of widespread shutdowns of such
businesses and Ponzi schemes in the
country, especially in West Bengal,
such as Rose Valley, and Sharada.

I
MAX, the large-format at standalone IMAX properties business billionaire. In effect, the and, ergo, struggle, and even saw him one of the two dominant residuary lakhs of gullible investors by Sahara’s Sahara group’s business was also
immersive cinematic experi- across the country while the book portrayed the aspirations go to jail. non-banking companies, from Ponzi schemes, allegations that the badly impacted.
ence, has exceeded its 2022 average ticket price ranges among Bengali youth to be rich and Roy breathed his last on Tuesday accepting fresh deposits from the group has consistently denied. In one lifetime, Roy has
success in India, already boast- around ₹360-370, a senior financially successful. night in Mumbai, and is survived by public. The RBI’s investigation found How did Roy collect so much bequeathed life-changing lessons
ing revenues surpassing $20 executive said. “The strong However, as the book was written his wife, two sons, and a brother. that the company had violated know money? What helped was that he was both on wealth creation and on acts
million (around ₹166 crore) this Hollywood line-up has played a in 2003, it naturally doesn’t capture Roy’s troubles had begun towards your customer (KYC) and investment a familiar figure in Gorakhpur, where that lead to unfortunate endgames.
year. Blockbusters like big role in our business this the second half of Roy’s story, which the end of his glory years. In 2008, guidelines. he completed his graduation in engi- For the second part, perhaps a sequel
Pathaan, Oppenheimer, and year but from a local Indian was not so rosy. The period saw his the Reserve Bank of India (RBI) In 2012, Roy was recognized as one neering and set up Sahara Group in to Shankar’s 2003 book is in order.
Jawan have contributed to perspective too, we’re asked for
these figures, accompanied by movies to be released in the
an expanded IMAX format on
screen count, The company has an everyday basis
despite a few local
titles, including
increased its
operational
and we try and
accommodate all
When Roy’s Sahara walked on the wrong side of the law, and lost
Ponniyin Selvan: screens to 26 out those that we
2, falling short of can,” Preetham PTI & Priyanka Gawande Sahara Housing Investment ₹24,000 crore with Sebi for hands of the SIREC and SHIC India (Sebi) refunded ₹138.07 doing and said all their invest-
of the installed
expectations. In Daniel, vice-presi- MuMbaI Corp. Ltd (SHICL)—to refund refund to investors, though to bypass the regulatory and crore over 11 years to investors ments were made as per law.
2022, the com- 30, compared to dent APAC (Asia the money raised from nearly the group has maintained it administrative authority of of two Sahara group firms. The In March, the Supreme Court
pany had earned 22 screens in 2022 Pacific), theatre

S
ubrata Roy’s death 3 crore investors via bonds had already refunded over Sebi...But having so con- amount in bank accounts for directed that ₹5,000 crore out
$18.8 million from development, brings into focus the known as optionally fully con- 95% of investors. cluded, it is repayment is now over of unutilized amount of
the Indian box IMAX Corp., told slew of litigation sur- vertible bonds (OFCDs). Retired apex Criminal es s ent i a l to ₹25,000 crore with interest. ₹24,000 crore in Sahara-Sebi
office. Mint in an interview. rounding the Sahara group, The order came after Sebi court judge, B.N. proceedings express, that Later, in September 2020, Refund account be disbursed
In contrast to 34 films The upward trend began and in particular the ₹25,000 ruled that the funds raised by Agarwal was initiated against there may be no the Central Registrar of Coop- to depositors of Sahara Group
released in the IMAX format with James Cameron’s science crore lying with the capital the two firms violated its rules appointed to Roy, experts said, real subscribers erative Societies sought a of Cooperatives Societies.
last year, in 2023 it has been 39 fiction film Avatar-The Way of markets regulator for distri- and held (among others) Sub- oversee that the
will be suspended for the OFCDs probe by Serious Fraud Inves- In July, cooperation minis-
titles, including six Indian Water which made over ₹26 bution to its investors. Crimi- rata Roy liable for the same. orders are com- issued by SIREC tigation Office (SFIO) into ter Amit Shah launched
films. Despite the challenges crore in the IMAX format when nal proceedings initiated After appeals and cross-ap- plied with within following his or SHIC. Or alter- investments by four coopera- ‘CRCS-Sahara Refund Portal’
posed by the covid-19 pan- released last December. It was against Roy, experts said, will peals, Supreme Court on 31 three months. death natively, there tives linked to Sahara group to facilitate return of the
demic, the company has followed by Shah Rukh Khan’s be suspended following his August 2012 upheld Sebi’s dir- Criticising the may be an inter- after it got 15,000 complaints. money to investors. Eighteen
increased its operational Pathaan which earned over ₹12 death. ections asking the two firms to Sahara group, the mix of real and These cooperative societies lakh depositors are registered
screens to 26 out of the crore but the game-changer In 2011, regulator Sebi refund the money of investors Supreme Court had said, fictitious subscribers.” were alleged to have raised on the portal. In August, the
installed 30, compared to 22 was Christopher Nolan’s ordered two Sahara group with 15% interest. “There can...be no hesitation According to the regulator’s about ₹86,000 crore. process to refund the money
screens in 2022. The projected Oppenheimer which clocked firms—Sahara India Real Sahara was eventually in accepting that...there was a latest annual report, the Secu- The credit societies had to the depositors started.
earnings of $20 million repre- in over ₹50 crore. Estate Corp. Ltd (SIREL) and asked to deposit an estimated pre-planned attempt at the rities and Exchange Board of refuted allegations of wrong- feedback@livemint.com

Have fun
with facts
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CIN : L74899DL1978PLC009038
Regd. Office: 11, Community Centre, Saket, New Delhi-110017
E-mail: - info@indagrubber.com; Website: www.indagrubber.com; Phone: 011-26963172-73
Extract of statement of audited financial results for the half year and quarter ended 30th September, 2023
(Rs in lacs)
S. Standalone Consolidated
Particulars
No. for the for the period for the for the year for the quarter for the period
quarter ended ended quarter ended ended ended ended
(30/09/2023) (30/09/2023) (30/09/2022) (31/03/2023) (30/09/2023) (30/09/2023)
(Audited) (Audited) (Audited) (Audited) (Audited) (Audited)
1 Total income from operations 6,668.23 13,271.17 6,534.68 25,224.32 6,651.25 13,254.19
2 Net Profit/(loss) before tax and exceptional item 622.58 1,232.64 224.13 1,724.05 558.11 1,168.17
3 Net Profit/(loss) after exceptional item and before tax 622.58 1,232.64 224.13 1,724.05 558.11 1,168.17
4 Net Profit/(loss) after tax 498.46 973.10 170.68 1,323.66 433.99 908.63
5 Total Comprehensive Income [Comprising Profit/(loss) (after tax) and
other Comprehensive Income (after tax)] 561.21 1,202.04 260.93 1,156.75 496.74 1,137.57
6 Paid up Equity Share Capital (Face value of Rs 2/- each) 525.00 525.00 525.00 525.00 525.00 525.00
7 Other Equity 21,464.56 21,464.56 20,129.52 20,656.27 21,431.69 21,431.69
8 Earnings Per Share (of Rs. 2/- each) (not annualised)
- Basic (in Rupees) 1.90 3.71 0.65 5.04 1.77 3.58
- Diluted (in Rupees) 1.90 3.71 0.65 5.04 1.77 3.58
Notes :-
1. The above audited financial results were reviewed by the Audit Committee on 13th November, 2023 and approved by the Board of Directors in the meeting held on 14th
November, 2023.
2. The above is an extract of the detailed format of the financial results for the half year and quarter ended 30th September, 2023, filed with the Stock Exchange(s) under
Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The full format of the financial results for the half year and quarter ended
30th September, 2023 is available on the Stock Exchange website www.bseindia.com and Company's website www.indagrubber.com.

Log on to Mint to stay abreast Place : New Delhi

For Indag Rubber Limited
Sd/-
Dated : 14th November, 2023 (CEO & Whole-Time Director)
with business news and affairs

Source: Similar Web; Report,Press Gazette; Total visits, Sept' 2023

08 ThursDay, 16 November 2023
New Delhi GLOBAL LIVEMINT.COM

m MINT SHORTS
Germany’s top court strikes down
Israeli forces in Gaza Biden, Xi eye thaw
in economic ties at
€60 billion climate funding
Germany’s top court struck down a key element of the govern-
ment’s plans to address climate change and transform the econ-
omy, dealing Chancellor Olaf Scholz’s coalition a major setback
hospital at siege’s end high-stakes meet
that throws its budget policy into disarray. The Federal Constitu- Bloomberg
tional Court ruled that the shifting of €60 billion ($65.2 billion) feedback@livemint.com
earmarked to tackle the Covid-19 pandemic into an off-budget
The days-long hospital siege caused global alarm over the fate of civilians
U
fund violated German constitutional law. The challenge was filed S President Joe Biden
by lawmakers from the main opposition conservative alliance, and Chinese counter-
who said they wanted to ensure the sustainability of the country’s part Xi Jinping’s care-
public finances. REUTERS Reuters fully choreographed, much-
feedback@livemint.com anticipated sitdown on the
Gaza sidelines of the Asia-Pacific
France issues arrest warrant Economic Cooperation (APEC)

for Syria’s President Assad
AFP
French judges have issued arrest warrants for Syria’s Pres-
ident Bashar al-Assad, his brother Maher al-Assad and two
other senior officials over the use of banned chemical
weapons against civilians in Syria, a judicial source said on
Wednesday. The arrest warrants—which refer to charges
of complicity in crimes against humanity and complicity
in war crimes—follow a criminal investigation into chemi-
cal attacks in the town of Douma and the district of East-
ern Ghouta in August 2013, attacks which killed more
than 1,000 people. It is the first international arrest war-
rant that has been issued for Assad. REUTERS
EU opens probe into Amazon’s
consumer protection measures
The European Commission on Wednesday announced a probe
into online retail giant Amazon to see how its consumer protec-
tion measures stack up against a new EU internet regulation law.
The request for information focuses on Amazon’s risk assessment
and mitigation measures required under the EU’s Digital Services
Act, “in particular with regard to the dissemination of illegal
products and the protection of fundamental rights,” said a com-
mission statement. Amazon has until 6 to respond. AFP
Over 200,000 people displaced
in recent Myanmar fighting: UN
REUTERS
I
sraeli troops entered Gaza’s biggest
hospital on Wednesday and were
searching its rooms and basement,
witnesses said, culminating a days-
long siege that caused global alarm
over the fate of thousands of civilians
trapped inside.
Al Shifa hospital in Gaza City has
become the main target of the ground
operation by Israeli forces, who say Hamas
fighters located the “beating heart” of
their operations in a headquarters in tun-
nels beneath it, which Hamas denies.
Israel said its troops uncovered unspec-
ified weapons and “terror infrastructure”
inside the hospital compound after killing
fighters in a clash outside. Once inside,
they said there had been no fighting and
no friction with civilians, patients or staff.
Witnesses who spoke to Reuters from
inside the compound on Wednesday
described a situation that appeared calm,
if tense, as the Israeli troops moved
between buildings carrying out searches.
Sporadic shooting was heard but there
were no immediate reports of anyone hurt
inside the grounds.
The Israeli military released photos of a
soldier standing beside cardboard boxes
marked “medical supplies” and “baby
food”, at a location Reuters verified was
inside the facility. Other photos showed
Israeli troops in tactical formation walking
past makeshift tents and mattresses.
World attention has been focused on
the fate of hundreds of patients trapped
inside without power to operate basic
medical equipment, and thousands of dis-
placed civilians who had sought shelter
there. Gaza officials say many patients
including three newborn babies died in
recent days as a result of Israel’s encircle-
ment of the facility.
“Before entering the hospital our forces
were confronted by explosive devices and
terrorist squads, fighting ensued in which
summit kicks off Wednesday at
the Filoli estate south of San
Francisco. Xi Jinping (left) and Joe Biden
The gathering, among 16 are meeting on the sidelines
acres of lush autumnal gardens, of the APEC summit in
belies a heady agenda, as they San Francisco. AFP
attempt to repair a relationship
badly strained by economic press conference, while Xi
competition and military and returns to San Francisco for a
diplomatic missteps. dinner with top US executives.
The leaders are expected to US and Chinese officials
discuss a US request for resum- spent weeks discussing the
ing military-to-military com- agenda and the structure of the
munication in hopes of avoid- event, White House spokes-
ing confrontations in Pacific man John Kirby said Tuesday.
skies and seas, as well as a com- “The table has been set again
prehensive Chinese law over the course of many weeks
An Israeli soldier stands near boxes labelled “Medical Supplies” at the Al Shifa hospital enforcement effort to crack for what we hope will be a very
complex on Wednesday. REUTERS down on fentanyl manufactur- productive, candid, construct-
ing and distribution networks. ive conversation here,” Kirby
terrorists were killed,” the Israeli military unfolded around the hospital overnight. The leaders also plan to con- said.
said. As he spoke, the sound of what he fer about artificial C h o r e o -
“We can confirm that incubators, baby described as “continuous shooting from intelligence, the The leaders are graphed Summit
food and medical supplies brought by IDF the tanks” could be heard in the back- status of Taiwan, expected to One US official,
tanks from Israel have successfully ground. and conflicts discuss a US briefing reporters
reached the Shifa hospital. Our medical “One of the big tanks entered within the involving Ukraine request for ahead of the
teams and Arabic speaking soldiers are on hospital from the eastern main gate, and and Israel. Chi- meeting on con-
resuming military- dition of anonym-
the ground to ensure that these supplies they were, they were they just parked in nese officials are
reach those in need,” it said. the front of the hospital likely to seek the to-military ity, said that
A senior military official Gaza officials say emergency department,” he rollback of export communication because of the
said: “IDF soldiers have many patients said. controls, tariffs, power Xi had con-
already found weapons and including three The Israelis had told the and restrictions solidated within
other terror infrastructure. newborn babies hospital administration in on investment in the US. China, the meeting offered a
In the last hour, we saw con- advance that they planned to The meeting is expected to rare opportunity to make
died in recent
crete evidence that Hamas enter, he said. By mid morn- follow roughly the same format changes in the relationship—
terrorists used the Shifa hos- days of Israel’s ing, he and other staff had yet as their previous gathering in and that the stakes couldn’t be
pital as a terror headquarter.” operations to receive instructions from Bali, Indonesia, in November higher. Aides acknowledged
Hamas called the claim the troops, although the sol- 2022. After a handshake greet- every detail of the visit would
that weapons were found “a diers were “metres away” ing, Biden and Xi will sit for a be scrutinized.
continuation of the lies and cheap propa- from them. meeting with close advisers. Treasury Secretary Janet
ganda through which (Israel) is trying to After five days during which he said the Following a break, a larger Yellen, who visited Xi in China
give justification for its crime aimed at hospital had come under repeated Israeli group will gather for additional earlier this year, greeted him at
destroying the health sector in Gaza”. attack, it was a relief at least to have talks, with the total meeting the airport on arrival, a nod to
Dr Ahmed El Mohallalati, a surgeon, reached an “end point”, with troops now time expected to stretch for their pre-existing relationship
told Reuters by phone on Wednesday inside the grounds instead of outside hours. Once they conclude, and her reputation in Beijing as
morning that staff had hid as the fighting shooting in, he said. Biden is expected to hold a a serious power broker.

Sunak’s Rwanda asylum plan China pumps cash into bank

left in tatters by UK top court system to support stimulus
Bloomberg —foremost among them Suella Bloomberg reserve requirement ratio cut
More than 200,000 people have been displaced by fight- feedback@livemint.com Braverman, who he fired as feedback@livemint.com by the PBOC is still possible
ing in Myanmar after an alliance of ethnic minority groups home secretary on Monday. but the timing is less certain

R C
launched an offensive against the military last month, the ishi Sunak’s controver-
United Nations said on Wednesday. Fighting has raged sial policy to deport asy-
since 27 October across northern Shan state near the Chi- lum seekers to Rwanda
nese border after the Myanmar National Democratic Alli- was ruled unlawful by the
ance Army, Ta’ang National Liberation Army and Arakan nation’s highest court, dashing
Army launched attacks on the military. The alliance has the UK prime minister’s cen-
blocked vital trade routes to China and seized a border tral plan to stem cross-channel
hub in what analysts say is the biggest military challenge arrivals in small boats.
to the junta since it seized power in 2021. REUTERS The Supreme Court deci-
sion on Wednesday is a major
embarrassment for the Con-
Taiwan’s opposition parties join servative government and
extinguishes any immediate
forces for presidential election chance that Sunak can make
Taiwan’s two leading opposition parties said Wednesday they good on the central plank of
would join forces for January’s presidential election, but they his tough immigration reform.
have not decided which candidate will be at the top of the ticket. Judge Robert Reed, the
Kuomintang (KMT)—the island’s leading pro-Beijing political president of the Supreme
group—and the Taiwan People’s Party (TPP) have been in discus- Court, ruled that there was a
sion for weeks over an alliance, with two candidates tussling over real risk that asylum seekers
who should run in the January 13 polls. The two sides struck “a processed by the Rwandan
cooperation agreement, creating a new record in Taiwan’s politi- state may be sent back to their
cal history”, KMT heavyweight and former president Ma Ying- home countries.
jeou told reporters. AFP It’s a moment of political
UK Prime Minister Rishi Sunak.
BLOOMBERG
danger for Sunak, who started
the year asking voters to judge
him by five key promises,
including a call to “stop the
boats” full of asylum seekers
travelling to the UK from
France. The verdict is likely to
embolden the right wing of his
Conservative Party who are
increasingly restless about
slow progress on immigration
“This has forced our hand a
little bit now: we should just
put the planes in the air now
and force them to go to
Rwanda,” deputy Conserva-
tive Party chairman Lee
Anderson, a leading voice on
the party’s right, told Bloom-
berg. “The government should
ignore the law and send them
back now. These people are
intruders and should be sent
back.”
The proposal spurred a
series of legal challenges. Ref-
ugees and charities challeng-
ing the plans said it didn’t align
with human-rights conven-
tions and that Rwanda wasn’t a
safe place to send asylum seek-
ers.
Sunak said in a statement
that he would consider “next
steps.”
hina stepped up its
support for the econ-
omy by pumping the
most cash since late 2016 into
the financial system with one-
year policy loans.
The People’s Bank of China
(PBOC) offered 1.45 trillion
yuan ($200 billion) of cash
through its medium-term
lending facility—600 billion
yuan more than the amount
coming due in November. The
net injection was the most in
nearly seven years, while the
rate on the loans was kept
unchanged at 2.5%.
Beijing faces a dilemma as it
seeks to bolster an economy
reeling from a weak property
while also shielding the yuan
from further depreciation due
to an already wide monetary
policy gap with the US. The
The PBOC $200 billion of cash
through its medium-term
lending facility. BLOOMBERG
latest batch of mixed eco-
nomic data also support the
need for policy action to
strengthen growth.
“The level of liquidity injec-
tion went beyond market
expectation,” said Becky Liu,
head of China macro strategy
at Standard Chartered Plc. A
now, she said.
The PBOC has cut the RRR
twice this year with a 25 basis
points move each in March
and September. It also deliv-
ered moderate policy rate cuts
to stimulate demand but has
been constrained by the yuan’s
depreciation due to pessimism
over the Chinese economy.
China also plans to provide
at least 1 trillion yuan of low-
cost financing to the nation’s
urban village renovation and
affordable housing pro-
grammes, in its latest effort to
shore up the property market,
people familiar with the mat-
ter said on Tuesday. The PBOC
would inject funds in phases
through policy banks with the
money ultimately trickling
down to households for home
purchases, they said.

Greenhouse gases hit record high in 2022, with no end in sight: UN

AFP
feedback@livemint.com
Geneva
G methane emissions
reenhouse gas concen-
trations in the atmos-
phere hit new record
highs in 2022, with no end in
sight to the rising trend, the
United Nations warned on
Wednesday.
conferences, we are still head- (CO2) accounts for about 64% why methane concentrations
ing in the wrong direction,”
said WMO chief Petteri Taalas.
The bulletin comes ahead of
of the warming effect on the cli-
mate.
Global averaged concentra-
are steadily growing,” said
Taalas.
For nitrous oxide—account-
EU reaches deal on
the 30 November-12 December tions of CO2 in 2022 were, for ing for around 7% of the warm-
COP28 UN climate summit in the first time, 50% above those ing effect—the increase last
Dubai. of the pre-industrial era, and year “was higher than that
The 2015 Paris Agreement “continued to grow in 2023”, observed any time before in our
saw countries agree to cap said the WMO. modern time record”, the Reuters After all-night talks,
global warming at “well below” “Given the long life of CO2, WMO said. feedback@livemint.com negotiators from EU mem-
two degrees Celsius above the temperature level already Around 80% of greenhouse ber states and the European

The UN’s World Meteoro-
logical Organization said levels
of the three main greenhouse
gases—the climate-warming
carbon dioxide, methane and
nitrous oxide—all broke
records last year.
Such levels of heat-trapping
gases will mean further tem-
perature increases, more
extreme weather and higher
sea levels, the WMO said in its
19th annual Greenhouse Gas
Bulletin.
“Despite decades of warn-
ings from the scientific com-
munity, thousands of pages of
reports and dozens of climate
average levels measured
between 1850 and 1900—and
1.5C if possible.
The global mean tempera-
ture in 2022 was 1.15C above
the 1850-1900 average—and
Taalas said it was all but certain
that 2023 would be the war-
mest year on record.
“The current level of green-
house gas concentrations puts
us on the pathway of an
increase in temperatures well
above the Paris Agreement tar-
gets by the end of this century,”
said Taalas.
“This will be accompanied
by more extreme weather,
T
observed will persist for several gas emissions come from G20 he European Union Parliament agreed to
decades even if emissions are countries. reached a deal on impose “maximum meth-
rapidly reduced to net zero,” Although the scientific com- Wednesday on a law ane intensity values” by
the WMO warned, with Taalas munity has a broad under- to place methane emissions 2030 on producers abroad
adding: “There is no magic standing of climate change and limits on Europe’s oil and sending fossil fuels into
In 2022, CO2 concentrations were at 418 ppm, methane at 1,923 wand to remove the excess car- its implications, there are still gas imports from 2030, Europe, the council of the
parts per billion and nitrous oxide at 336 parts per billion. AP bon dioxide from the atmos- some uncertainties about the pressuring international EU, which represents mem-
phere”. carbon cycle—and the fluxes in suppliers to clamp down on ber states, said in a state-
including intense heat and centrations were at 418 parts Atmospheric methane is the the ocean, the land biosphere leaks of the potent green- ment.
rainfall, ice melt, sea level rise per million, methane at 1,923 second largest contributor to and the permafrost areas. house gas. The import rules are
and ocean heat and acidifica- parts per billion and nitrous climate change, accounting for The bulletin called for Methane in the short likely to hit major gas sup-
tion. oxide at 336 parts per billion. around 16% of the warming greater information on certain term has a far higher warm- pliers which include the US,
“The socioeconomic and These values constitute, effect. Methane remains in the topics.These included feed- ing effect than CO2. Rapid Algeria and Russia.
environmental costs will soar. respectively, 150%, 264% and atmosphere for only about 10 back loops in the climate sys- cuts in methane emissions The EU’s exact methane
We must reduce the consump- 124% of the pre-industrial years, but has a much more tem—for example, increased this decade are crucial if the emissions limit will be set
tion of fossil fuels as a matter of (before 1750) levels. powerful warming impact than carbon emissions from soils or world is to avoid severe cli- out by the European Com-
urgency.” Of the three major green- CO2. decreased carbon uptake by mate change. mission before it applies.
In 2022, carbon dioxide con- houses gases, carbon dioxide “We don’t fully understand oceans due to climate change.
LIVEMINT.COM NEWS WRAP ThursDay, 16 November 2023
New Delhi 09

NEWS
0.5%
THE drop in the US producer price index,
$31.46 Bn
INDIA’S MERCHANDISE trade deficit in
33%
THE YEAR-on-year growth in net profits
₹150 Cr
THE BOX office collection of Salman
$2.28 bn
THE AMOUNT for which Germany’s
IN which measures final demand costs for October 2023, up from $26.31 billion a year reported by Indian banks during the Khan’s Tiger 3, in three days, even as it Siemens is planning to buy an 18% stake in
NUMBERS businesses in October from September,
the biggest drop since April 2020.
ago, due to a sharp rise in gold imports
and a higher oil bill.
second quarter of FY24, led by a reduction
in credit costs.
became the third Hindi film this year to
cross ₹100 crore mark on Day 2.
its Indian joint venture, Siemens Ltd, from
Siemens Energy.

HOWINDIALIVES.COM

Landslide, tech issue ON TOP OF THE WORLD Aggarwal of Actis

hit rescue of miners likely to head NIIF

O S
perations to rescue 40 labourers anjiv Aggarwal, who leads energy
trapped in a tunnel have been investments for Actis LLP in Asia, is
hampered after a landslide at the site emerging as the frontrunner to head
and technical problems with a drilling machine India’s $4.9 billion quasi sovereign fund,
being used to create an escape passage, officials according to people with knowledge of the
said. matter, filling a role left in limbo for more than
The labourers are safe, and oxygen, a year.
electricity, medicines, food items and water are The board of the National Investment &
being constantly supplied to them through Infrastructure Fund has recommended
pipes, they said. Aggarwal for the role of chief executive officer,
A portion of the under-construction tunnel, the people said, asking not to be identified as
which is part of the ambitious Chardham All the information is private.
Weather Road project, collapsed on Sunday. The final list of approved candidates
The 30-metre collapsed section is 270 submitted to the government about three
metres from the mouth of the tunnel from the weeks ago may have included another
Silkyara side. executive, they added.
On Tuesday night, rubble from the landslide Aggarwal is seen as a top choice due to his
fell on the collapsed part of the tunnel, experience in the infrastructure and energy
hampering operations as well as injuring two sector, key areas that the fund works on, the
rescue workers. They are being treated at a people said. BLOOMBERG
makeshift hospital, the officials said. PTI

Virat Kohli celebrates his century during the ICC Men’s Cricket World Cup 2023 semi-final match between India and New Zealand, at the Wankhede
Stadium, in Mumbai, on Wednesday. India won the match by 70 runs. Kohli’s 50th one-day international century takes him past Sachin Tendulkar’s
all-time record. Kohli, who equalled Tendulkar’s feat of 49 tons on his 35th birthday on 5 November, reached the milestone in his 279th innings. PTI

Its first QIP saw a strong response from domestic

India’s blue economy offers sea Aequs has a contract with Airbus for component
supply of A320 family, A330neo & A350 aircraft. AFP
& foreign institutional investors.

Ramkrishna Forgings
ISTOCKPHOTO

of opportunities: Sitharaman Aequs bags supply

deal from Airbus
raises ₹1,000 crore
A
erospace components maker Aequs on

L
eading forgoing company, Ramkrishna
Forgings Ltd, on Wednesday announced
that it has raised ₹1,000 crore through a
qualified institutional placement (QIP) of its
equity shares. The Kolkata-based company, in
a statement, said it has approved the allotment
of over 16.2 million equity shares of face value
of ₹2 at an issue price of ₹614 apiece.
Wednesday said it has secured a
Govt is ready to support maritime sector by way of fiscal policy and financial outlay contract with European aircraft major
Airbus for the supply of critical components for
A320 family, A330neo and A350 aircraft for
Gireesh Chandra Prasad vide the requisite support by way of fiscal policy nomic stability in the region. “We truly believe over a period of 10 years.
gireesh.p@livemint.com and financial outlay,” Sitharaman said. that it is not possible for the Indian economy to Under the terms of the agreement, Aequs
NEw DELHI “We seek to position India as a hub in new and ride on some crest while the economies of other will make detailed parts, parts with bench
diversified supply chains and value chains across countries of our maritime neighbourhood are assembly for wings, fuselage, and pylons for

The first-ever QIP of the company witnessed
a strong response from marquee domestic and
foreign institutional investors, it said.
Investors such as Nomura, SmallCap World
Fund from Capital Group and BNP Paribas
took part in the issue and were allocated up to
71.22% of the offered equity shares.
“We get a manifold response to the QIP of
₹1,000 crore. We welcome prominent global
investors such as Nomura, SmallCap World
Fund from Capital Group and BNP Paribas,”
Naresh Jalan, managing director of
Ramkrishna Forgings, said. This fundraising
exercise will enable the company to embark on
the next phase of its growth journey, to reduce
debt and advance in manufacturing initiatives,
he said.
I
ndia’s blue economy offers a sea of opportuni- the Indo-Pacific and, indeed, across the world,” wallowing in some trough,” Sitharaman said. these planes, Aequs said.
ties and the government is determined to pro- Sitharaman said. She said that if we are to grow in an environ- Aequs has been a longstanding supplier to
vide all support to the maritime sector as The minister said ment of peace, secu- Airbus which was its first original equipment
India’s comprehensive national power is that the Indo-Pa- rity, and stability, manufacturer customer and has consistently
linked to the ocean, finance minister Nirmala cific region which The finance minister said, for India to the growth and been a preferred detailed parts partner to it for
Sitharaman said on Wednesday. accounts for 60% of grow in an environment of peace, security of others in well over a decade. The mandate is a significant
Speaking at the Indo-Pacific Regional Dialogue global economic the region must also milestone not only for Aequs, but also for the
2023 in the capital, the minister said that for India output and almost security and stability, other nations in grow. Indian aerospace industry, amid the country’s
to grow in an environment of peace, security and half of global mer- the region should also grow “As far as India is growing significance as a global aerospace
stability, other nations in the region should also chandise trade is concerned, we are manufacturing hub, deepening Airbus’ make-
grow. also a geopolitically straining every in-India drive, Aequs said. PTI
The minister said that India is conscious that, contested space that is being roiled by great sinew to ensure that we set an example that is
over the foreseeable future, India’s comprehen- power competition. India stands firmly on the worthy of emulation. Consequently, we have sig-
sive national power is going to remain inextrica- vanguard of an internationally accepted and con- nificantly improved our position as a well-gov-
bly linked to the ocean. “We are seized of the
pressing need to grow the maritime sector as a
sensually derived rules-based order, the minister erned and innovative country with a conducive
said. environment for business, as reflected in several
ONGC set to invest
PTI whole and our government is determined to pro- The minister also spoke about the need for eco- global indices,” Sitharaman said.
₹1 tn for two plants

T
op oil and gas producer ONGC plans to
Govt eyes coking invest about ₹1 trillion in setting up two
PM launches tribal welfare schemes petrochemical plants to convert crude oil
coal from Australia directly into high-value chemical products as it
prepares for energy transition, top company
Birsa Munda. Apart from ‘PM Janjati officials said on Wednesday.

T
he Indian government will request
Australia to take measures to ensure
steady supplies of coking coal, four
sources said, as part of efforts to help steel mills
reeling from falling supplies and rising prices
of the key raw material in steel-making.
Nagendra Nath Sinha, steel secretary, will
meet Philip Green, Australia’s high
commissioner to India, and the two sides are
likely to discuss India’s need for coking coal,
said the sources, who included two Indian
government officials and two industry
executives.
Sinha and Green are likely to meet on Friday,
said the sources, who declined to be identified
PM Modi during a visit to Ulihatu, the birth
place of Birsa Munda, in Khunti district. PTI
Adivasi Nyaya Maha Abhiyan’, Modi also
launched several schemes including
‘Viksit Bharat Sankalp Yatra’, a
nationwide programme aimed at
reaching out to citizens who are eligible
for various central schemes but have not
benefitted so far. He also emphasized the
need to strengthen four pillars—women,
farmers, youth and middle class and poor
—for the development of the nation.
“I have come to the land of Birsa Munda
to repay the debt that I owe to the
deprived,” the Prime Minister said while
addressing a public rally at Khunti
Football Ground in Jharkhand after
China has increased its naval forays into the
Indian Ocean triggering concerns in New Delhi.. PTI
India monitoring
Crude oil, which companies like ONGC
pump out from below seabed and
underground reservoirs, is a primary source of
energy.
It is processed in oil refineries to produce
petrol, diesel and jet fuel. With the world
looking to transition away from fossil fuels,
companies around the globe are looking at new
avenues to use crude oil.
Petrochemicals are chemical products
derived from crude oil and used in the
manufacturing of detergents, fibres (polyester,
nylon, acrylic, etc.), polythene and other man-
made plastics. PTI

P Pak, China exercise

because they were not authorized to speak to
media.
Australia accounts for over half of India’s
coking coal imports of around 70 million
metric tons a year.
The steel ministry and the Australian high
commission did not immediately reply to e-
M Narendra Modi on Wednesday
promised to work on a ‘mission
mode’ to deliver justice to deprived
tribals and said he will repay the debt he
owed to them while launching ₹24,000-
crore project for vulnerable tribal groups
on the birth anniversary of tribal icon
paying homage to the tribal icon at his
birthplace Ulihatu. The visit holds
political significance too as the BJP aims
Vedanta dispatches
N
to woo tribal voters in Jharkhand ahead of avy has been keeping a close watch on the
the 2024 Lok Sabha polls and assembly
elections in other states having sizeable
movement of Chinese warships and a
submarine which are participating in a first Restora order
tribal population. PTI mega naval exercise with Pakistan, government

mails seeking comment.
Isro-Nasa joint space mission to map globe every 12 days
REUTERS sources said on Wednesday. The navies of China
and Pakistan on Monday kicked off their largest
naval exercises in the Arabian Sea which included
their first joint maritime patrol.
The China-Pakistan Sea Guardians-3 joint
maritime exercise, with the theme of “Joint
Response to Maritime Security Threats”,
V
edanta Aluminium on Wednesday said
that it has dispatched its first supply of
low-carbon aluminium to a company
based in Telangana. As part of the order, the
company will supply 300 tonnes of Restora
billets to Global Aluminium.
“Vedanta Aluminium has dispatched its first

T
he Nasa-Isro Synthetic Aperture Radar (NISAR) is set to be launched in
the first quarter of 2024 after a few tests, particularly those related to
vibration, Nasa officials have said.
“Isro is projecting the first quarter of next year. So, I mean, that’s ready,”
Nasa NISAR project manager Phil Barela said during a media interaction in
Bengaluru on Wednesday. He is expecting the launch of NISAR (spelt as
‘Naisar’) “not earlier than January” from the Satish Dhawan Space Centre at
Sriharikota aboard the Isro Geosynchronous Satellite Launch Vehicle Mark-
II. The mission, which has three-year duration, aims to survey all of Earth’s
land and ice-covered surfaces every 12 days. This will start after a 90-day
satellite commissioning period.
According to Isro, NISAR is a Low Earth Orbit observatory being jointly
developed by it and Nasa.
The SUV-size satellite has a mass of roughly 2,800 kg, which will be
powered by two solar arrays providing about four kilowatts of power.
began at a naval base in Karachi.
China’s PLA Navy has deployed a number of
platforms including frontline warships and a
submarine for the exercise from 11 to 17
November.
The Indian Navy is monitoring the movements
of the Chinese warships and the submarine which
are participating in the Sea Guardian exercise
with Pakistan from the moment they entered the
Indian Ocean through Malacca Strait, the sources
said.
The Indian Ocean region is largely considered
as the backyard of the Indian Navy. In the last few
Launch of NISAR is expected “not earlier than January” from the Satish years, China has increased its naval forays into the
PTI Dhawan Space Centre at Sriharikota. PTI region triggering some concerns in New Delhi. PTI
domestic supply of Restora, the nation’s first-
ever low-carbon ‘green’ aluminium, to Global
Aluminium Pvt. Ltd, a leading aluminium
extrusion company based in Telangana,” the
company said. Manufactured using renewable
energy, Restora is produced with a greenhouse
gas emission intensity within four tonnes of
CO2 equivalent per tonne of aluminium
manufactured, which is the global threshold
for aluminium to be considered as having a low
carbon footprint.
“We are committed to working with our
valued customers to realize a greener future for
the planet,” Vedanta Aluminium CEO John
Slaven said. PTI
10 ThursDay, 16 November 2023
New Delhi
THE UGLY UNDERBELLY OF
BoB’s app usage FIascO
India’s second-largest state-owned lender crossed many red lines to boost its banking app’s user numbers
Shayan Ghosh
shayan.g@livemint.com
mumbai
G
andha hai par dhandha hai,”
says a man in a recording of a
conversation accessed by
Mint. That Hindi saying,
loosely translated, means
that a dirty job is still a job.
The man speaking is apparently a sen-
ior information technology (IT) official at
Bank of Baroda (BoB). During this conver-
sation with a colleague, in March this year,
he explains how to exploit a loophole in
the system to open new accounts and
inflate onboarding on the bank’s mobile
app, called ‘bob World’.
At the time, BoB branch officials could
tap a link to open accounts using their per-
sonal mobile phones. To thwart any
unwarranted use of the link, the bank has
a ‘maker and checker’ function, where one
person initiates the opening and another
verifies it. The account opening had to
therefore be authorized at the back-end
before transactions could happen. How-
ever, in the interim, the bob World app
could be downloaded by the registered
mobile number, and though it could not
be used, the registration would add to the
app’s user numbers.
In the recording, the IT official tells his
colleague to reach out to his friends and
acquaintances and use their voter identity
cards to open accounts. It did not matter if
these accounts never see the light of day at
the verification level since they had
already served the account opening pur-
pose and added to bob World activations,
ramping up the count.
Under intense pressure from their sen-
iors, some BoB employees used this and
other questionable and unethical meth-
ods to ramp up registrations. Seniors at
India’s second-largest state-owned len-
der pushed relentlessly to inflate user
numbers without assessing if customers
actually required the service on offer.
More importantly, the seniors did not
seem to be aware of what was transpiring
on the ground because of their ‘pressure’,
with customer consent norms being
bypassed in order to comply with their
app activation goals.
To be sure, the rise in BoB’s app regis-
trations has been phenomenal. Between
the end of 2021-22 and the end of
2022-23, bob World’s activated user base
shot up 53%, data from the bank’s presen-
tation to analysts showed. It is not clear
how much of this growth has been driven
by the questionable onboarding methods.
In comparison, India’s largest lender,
State Bank of India, saw a 26% growth in
registered users on its app, Yono, albeit on
a larger base.
Al Jazeera, on 11 July, was the first to
report on the onboarding malpractices for
bob World. The lender had then put on a
brave face and said it had a “current
mobile banking activated user base of 30
million customers, all of whom are linked
to a unique mobile number seeded with
their bank account”.
Not only were users registered on the
app without their knowledge, some had
money stolen from their accounts. Citing
internal audit reports, Al Jazeera
reported on 12 October that some BoB
business correspondents stole ₹22 lakh
from 362 customers. The Reserve Bank
of India (RBI) finally took cognizance of
news reports and cut off further
onboarding. BoB is now scrambling to set
its house in order.
Mint has tried to piece together the
events that led to this mindless target-
chasing and how different layers of the
bank’s administration were aware of the
workarounds for some time before it
made news. We spoke to two bankers at
the state-owned lender and another two at
branches of rival banks aware of the
goings-on at BoB. None of them wanted to
be identified.
THE ‘PRESSURE’
I t all started sometime in 2021, when
officials at BoB branches had to come in
even on weekends as onboarding targets
for bob World had not been met. They
were told to go to the field and convince
people to download the app and register
on it. But some people, particularly in
rural areas, neither had smartphones nor
saw any reason to give up on branch visits.
“We were told to get 100-200 activa-
tions per day. The regional and zonal offi-
cers would call us and tell us to go to peo-
ple’s homes and get bob World activated,”
said a branch manager, adding there was
immense pressure, regardless of the
branch’s potential.
The bank wanted branches to prop up
the numbers and it wanted it done
quickly. The two bankers from BoB said
banks usually have ‘login days’ across the
board, a term used to denote days when
employees focus on specific products.
LONG STORY LIVEMINT.COM
“On login days for bob World, employ- tomers on the app.
ees had to come in at 7am and work till Instead of just imposing a monetary
9-10pm. This especially happened during fine on banks and non-banks for wrong-
the yearly closing of accounts. Every hour, doing, the regulator has been using this
there used to be calls from seniors in approach, which takes away potential
the regional and
zonal offices asking ANATOMY OF A DISASTER revenue and income from digital chan-
nels. This was seen in the case of HDFC
for activation data, Bank in 2020, when RBI told the lender
putting even more to halt credit card issuances and not
pressure,” said one of IN 2021, Bank of Baroda (BoB) pushes launch any new digital initiatives. Those
the bankers. employees to onboard more and more bans were reversed in 2021 and 2022,
The other BoB respectively.
employee said regional
customers on its mobile banking app. According to BoB employees, after the
managers started raising Al Jazeera story broke, RBI asked BoB to
targets to unrealistic lev- submit a report on the incident. The
els. BoB, like many of its employees Mint spoke to said that RBI’s
peers, works on a four- deadline was so tight that the bank asked
tier structure, where senior branch officials to investigate
branches form the other branches near them to identify
bottom of the pyra- instances of malpractices. The seniors
mid, followed by submitted their reports on a portal and
regional offices, these were checked by officials at
zonal offices, and regional offices.
finally the head “This seemed like a rare exercise but
office and the cor- was perhaps necessitated by the short
porate office. As per RBI deadline. We checked limited
the employee, the accounts at some branches while other
regional office he bankers checked our records,” said a
reported to had sent all branches a list of banker who had gone through accounts at
accounts that did not have bob World acti- BANK seeks over 100 ‘bob World’ activations per a nearby branch.
vated. Experts said that while this is correct in
BoB used a carrot-and-stick policy in its day from branches, especially on ‘login days’, or days principle, as verification was being carried
app push. It even incentivized bankers with special focus on a specific product. out by someone who did not initiate the
with rewards such as team transactions, it was not ideal. “They could
lunches or other activities for have done it through multiple chartered
overshooting targets. As per accountants—time may not be a real justi-
an internal email from March fication,” said a former RBI official.
seen by Mint, a branch with up The bank’s audit and inspection cell is
to four employees would get BRANCHES find it difficult to convince that many also looking into the issue, checking sus-
up to ₹5,000; those with five- customers to download and install the app. pect bank accounts, especially those
nine employees would receive where bob World was registered and
up to ₹10,000, and branches deregistered quickly.
with 10 or more staff would get A BoB spokesperson, in an emailed
up to ₹15,000 as an incentive response to queries from Mint, stated that
for meeting targets. there were some gaps in terms of the ade-
“We were called quacy of documents and data errors, and
incompetent at meet- that the bank has engaged an external
ings if targets for bob
World were not met,”
REGIONAL offices send branches a list of agency to audit and further strengthen
the onboarding process.
said the second BoB
accounts that do not have mobile numbers linked “We would like to reiterate that the
source. The first to them. The idea? Link mobile numbers to these bank’s mobile banking platform is
employee said they accounts and activate bob World. fully secure with robust security con-
were threatened with trols and features in place,” the spokes-
transfers, although person said, and added that the bank is
nobody from his branch was working to address the regulatory con-
transferred for not meeting tar- cerns at the earliest.
gets. “Since the regulatory process is ongo-
Insiders said that onboarding ing, we are not in a position to share any
pressure continued TEAM lunches, worth between further details at this stage,” the state-
through 2021, 2022 and ₹5,000 and ₹15,000, dangled for ment added.
the first half of this overachievers.
year. This despite the The axe
bank, as per the 11 July
Al Jazeera report, con-
ducting a “discreet
A month after the fiasco came to
light, the bank’s chief digital offi-
cer, Akhil Handa, resigned. The bank
inquiry” in 2022. said in a regulatory filing that Handa
SOME employees link their phone numbers was being replaced owing to the ces-
a woRkaRound and those of business correspondents to many sation of his employment. In a post
T he list that
regional offices
sent to branches was of
bank accounts without customer consent.
on LinkedIn, Handa bade farewell
to former colleagues and said he
was embarking on a new journey.
bank accounts that did However, it didn’t end there.
not have any registered After the bank’s chief executive
mobile numbers attached Debadatta Chand told reporters on
to them, making it easier to 4 November that Handa’s contract
add a phone number to these had been terminated, the latter
accounts and get them regis- sent out a statement with a screen-
tered on bob World. THE malpractice adds to the shot of his resignation email,
Succumbing to pressure, number of mobile app activations. dated 9 August. His statement
some bankers used their In FY23, the bank added 10.4 said, “The narrative of termina-
own, and other related tion seems a deflection of opera-
mobile numbers, to acti-
million activated users. tional lapses at the branch
vate the app without the level….” Handa did not elaborate
knowledge of the account when he was asked about this and
holder. They even linked whether he had faced pressure
several account numbers internally. An email sent to him
to a single mobile num- remained unanswered.
ber. The problem intensi- Following RBI’s public state-
fied when business cor- IN 2022, the bank finds out the ment, BoB decided to suspend a
respondents, some of scale of the malpractice and clutch of employees, something
whose numbers were launches a clean-up drive. that the bank has still not officially
seeded to unrelated communicated. As per bank union
bank accounts, decided representatives, about nine people
to make withdrawals were suspended.
without the consent of the In a comical turn, the bank tried
account holder. Business to claw back the incentives it had
correspondents represent doled out to employees who had
banks and facilitate bank- THE Reserve Bank of India (RBI) met app activation targets,
ing services at locations
other than a bank branch
and ATM.
asks the bank to check transactions
and submit a report.
irrespective of whether they
were complicit in the mal-
practice or not. This was
When the bank realized met with resistance and the
what was going on, it tried to employees asked their
cover up the wrongdoing. labour unions to take the
“Senior officers started visiting matter up.
branches, asking us to check how “Bankers were receiving
many accounts are seeded to a single informal instructions to
mobile number so that it could be BoB sends branch officials return these benefits (the
removed from the back-end,” one of the above a certain rank to money received) and that
BoB employees said and added that while investigate the transactions has now stopped after the
branches can link a number, it is nearly unions stepped in. It is sur-
impossible to delete it and this needs
at nearby branches. prising that the bank
authorization from higher-ups. wanted to take away
ILLUSTRATION: ASHISH ASTHANA/MINT something as small as
RBI sTeps In INFOGRAPHIC: RAJESH KUMAR/MINT money received for team lunches,”
O n 10 October, RBI said it had come
across “material supervisory con-
cerns” in the manner in which customers IN October 2023, RBI directs the bank to stop
said one of the bankers.
BoB has also now barred access to the
account opening link mentioned on per-
were brought onto the bob World app and onboarding new customers on the app.
barred the bank from acquiring new cus- TURN TO PAGE 11
LIVEMINT.COM
Why many bankers hard-sell
guaranteed insurance plans
While they earn hefty commissions on these products, investors benefit from the tax sops
Sashind
sashindnj@livemint.com
B
eing a bank relationship
manager is not easy, espe-
cially if one has to meet a
sales target that is typically
in multiples of the take-
home salary. These bankers have the
unenvious job of convincing their high
net-worth clients to invest in various
financial instruments, including fixed
deposits and mutual funds. However,
they prefer to hard-sell guaranteed
insurance plans, according to industry
executives. And that is because of the
huge commissions dangled by the
insurance sector.
Industry executives aver that guar-
anteed insurance plans make up for a
bigger chunk of the financial instru-
ments marketed by relationship man-
agers. To be sure, the insurance sector
does not segregate data on different
types of policies in public domain. The
head of a leading bank’s private wealth
division told Mint, on condition of ano-
nymity, that about half of the firm’s
total assets under management (AUM)
are deployed in guaranteed insurance
plans.
The commissions vary depending on
the type of plan and the insurer but are
typically around 40-55% of the first
year premium and subsequently low-
ered from the second year onwards. In
March, the insurance regulator
removed a cap on product-specific
commissions. It said the commissions
will now be covered under an insurer’s
expense of management.
“Insurance is a high commission
product and they (the insurers) are
incentivizing the bankers to sell it. We
don’t subscribe to half the AUM going
into a product like this. This can just
form a part of one’s fixed income port-
folio but if the horizon is 10 to 15 years,
they can have more allocation to equity
products,” said Himanshu Kohli,
co-founder of Client Associates, a pri-
vate wealth management firm.
Equity products also offer better
returns but with higher risk. For
instance, the rolling returns from Nip-
pon Bees (Nifty ETF) was 11.74% during
a 10-year period. Note that in the case of
mutual funds, the investment can be
redeemed at any time by paying the
applicable capital gains tax and exit
load. For guaranteed insurance prod-
ucts, this money gets locked in until
maturity.
Nithin Balachandani, who runs
Insurance Angels, said that if you dis-
continue the plan before its term ends,
its surrender value would be very nom-
inal compared to the premium amount
paid.
Guaranteed insurance plans pay out
a fixed lump sum amount or regular
payments after a specific period, as
defined in the policy documents.
Unlike mutual funds, whose returns are
variable, these plans offer fixed pay-
ments. They also come with a life cover
which is typically 10 times the annual
premium paid.
Currently, there are various insur-
ance products in the market such as
money back plans, guaranteed plans, or
endowment plans. These plans come
with an annual premium which has to
be paid for a few years before the poli-
cyholder receives a fixed income every
year after a specified period. Some
plans fetch a fixed income after the pol-
RETIREMENT PLANNING : IT’S BETTER TO BE ROUGHLY RIGHT THAN PRECISELY WRONG
POWER
POINT
ABHISHEK KUMAR
Respond to this column at
feedback@livemint.com
W
hen the Chandrayan-2 lander crash-landed on the
moon’s surface in 2019, ISRO scientists had their task
cut out—to make Chandrayan-3 a success. They
achieved this in 2023 when it landed successfully. However, we
don’t always get a second chance, and we need to get it right the
first time, especially when it comes to retirement planning.
Because one might not be able to resume work in their retirement
years, and by then, it might be too late to recover from the perils
of a low retirement corpus.
The essential factors to consider while planning for retire-
ment corpus are retirement expenses adjusted for inflation,
expected returns, and life expectancy. So, to avoid running
out of money in retirement, one is advised to follow conserva-
tism, a term borrowed from accounting principles which fac-
tors in worse-case scenarios. Using this principle when one
is planning for retirement, they should factor in experiencing
higher inflation, lower returns, and higher life expectancy.
MINT MONEY ThuRsDay, 16 NovembeR 2023
New Delhi 11
MINT 20* MUTUAL FUND
SCHEMES TO INVEST IN
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
EQUITY (%) (%) (₹ cr)
LARGE-CAP
UTI Nifty Index Fund - Growth 16.42 13.85 12,597
HDFC Index Fund - Nifty 50 Plan 16.26 13.62 9,829
Category average 15.87 13.45
How bankers are exploiting govt's tax loophole EQUITY FLEXICAP
Canara Robeco Flexi Cap 16.71 15.33 10,308
Insurance products offer yields higher than debt MFs, bank FDs, and bonds in the long run, thanks to a
favourable tax treatment by the government. No taxes are levied on annual premiums of up to 5 lakh. Parag Parikh Flexi Cap 22.87 21.19 42,785
Category average 19.18 15.14
Tax break makes insurance attractive but commissions are alarming
Illustration based on the plan of a leading private life insurance company EQUITY SMALL AND MIDCAP
Guaranteed maturity plan Debt mutual fund Earns Axis Midcap 20.91 18.21 22,656
Invest: 1 lakh yearly* Invest: 1 lakh yearly 0.9% extra SBI Small Cap 29.94 21.82 21,320
For 10 years For 10 years by investing Category average Midcap 27.63 18.98
Pay 30% tax
in an insurance Category average Smallcap 35.22 21.83
Get (8.3 lakh in tax) product
Get No taxes paid*
22.72 lakh ₹19.5 lakh EQUITY (TAXSAVER)
IRR = 6.7% (pre tax)
after 20 IRR: 5.3%^ after 20 Canara Robeco Equity Tax Saver 19.12 17.11 6,140
years IRR = 4.4% (post tax)
years Mirae Asset Tax Saver 19.23 17.02 17,985
Category average 19.23 14.81
*Premiums up to 5 lakh yearly are tax-free, allowing a family of 4 to invest 20 lakhs annually.
^GST as a transaction fee slightly reduces the effective IRR (internal rate of return)
HYBRID
Where is the extra return coming from? BALANCED ADVANTAGE
If an insurance company invests solely in G-secs, they can Why do bankers love to sell Edelweiss Balanced Advantage 13.12 12.41 9,475
deduct 1.9% compared to investing directly and still give a guaranteed plans? ICICI Prudential Balanced Advantage 12.99 11.64 49,976
higher return, thanks to tax breaks.
The head of a top private bank said that 50% of Category average 12.27 10.68
Guaranteed maturity plan 10-year G-sec their AUM is in guaranteed insurance plans.
ARBITRAGE
First-year commissions:
10 year G-sec yield: 7.2% 10 year G-sec yield: 7.2% Kotak Equity Arbitrage 5.18 5.23 27,412
40-45*% of premium By selling
insurance plans, Tata Arbitrage 4.86 NA 7,445
Taxes paid: 0% Taxes paid: 2.16% Second year onwards:
RMs can meet Category average 4.84 4.93
20-30 of premium
Charges: 1.9% Charges: 0% their targets
MF commissions: faster than by Returns since Date of Corpus
0.1-1% of corpus annually
OUT OF THE BOX launch launch (₹ cr)
Effective yield: 5.3% Effective yield: 5.04%
selling MFs.
BHARAT Bond ETF - April 2031 4.73 23 Jul 2020 12,908
*Keeps reducing from there
*This is just for illustration purposes, actual calculations may vary; Motilal Oswal S&P 500 Index Fund 15.24 28 Apr 2020 2,743
RM: relationship manager
Returns as on 10 November 2023; Corpus data as of September 2023; Growth option in regular plans has been used
Absolute returns for 'Out of box', CAGR for the rest. For detailed methodology refer to:
How a family of 4
Keep a smart, flexible and minimalist MF portfolio
https://www.livemint.com/money/personal-finance/keep-a-smart-flexible-and-minimalist-mf-portfolio-11638378827521.html
How govt is slowly reducing tax benefits on guaranteed insurance plans? can invest Download mint app for latest in Business News - https://bit.ly/32XEfFE
20 lakh per year? *Debt funds can be viewed in the full table online
Before 2023 2003-2012 2012-2023 2023 onwards
Tax-free limit - Data and analysis by CRISIL Research Compiled by Neil Borate
Tax exempt under If sum assured is If sum assured is *Annual up to 5 lakh
any situation more than 5 times more than premiums premium/year
the annual 10 times the above (per individual)
premium annual premium 5 lakh is
Then, maturity
amount is
Then, maturity
amount is
taxable Father: 5 lakh
Mother: 5 lakh
Son: 5 lakh
The ugly underbelly of
tax free tax free
Daughter: 5 lakh
BoB’s app usage fiasco
icy term ends. Others offer a fixed lump a year exceeds ₹5 lakh. source, by the insurance company.
sum on maturity or a fixed income until People can also buy these policies in When the maturity amount reflects FROM PAGE 10
the death of the policyholder. the names of their spouse or children to in the income tax statement, the policy-
Tax breaks claim tax benefits on the premium paid. holder may be liable to pay additional sonal devices. It can only be
One reason why guaranteed insur- Thus, for a family of four members, a tax, depending on the income slab. The accessed on tablets provided
ance plans find favour with investors is total of ₹20 lakh can be invested in such 5% TDS is largely for recording transac- by the bank.
their tax-friendly nature, which makes guaranteed insurance products. Note tions. If the recipient is above 80 and
them more attractive than debt mutual that goods and service tax of 4.5% is the amount received is less than ₹3 ‘NO MATERIAL IMPACT’
funds and government securities. applicable on all transactions in the
Under one such insurance plan, if first year and 2.25% thereafter. Nitesh
you invest ₹1 lakh annually for 10 years Buddhadev, a chartered accountant
lakh, then the individual can claim
refund of tax deducted. Conversely,
earning professionals or businessmen
T he bank has posted
strong profit and digital
growth over the last few quar-
and then wait for another 10 years, you and founder of Nimit Consultancy, says may be subjected to higher taxes. ters and even sees itself com-
will get a lump sum of ₹22.72 lakh at that, in case, the policyholder stops Balwant Jain, a tax expert, said that peting against private sector
the end of 20 years. That’s a tax-free paying the premium within two years there is no proper provision that says lenders. Despite RBI’s direct-
internal rate of return or discontinues the policy how the insurance maturity amount ive to stop onboarding new
(IRR) of 5.3%. However, if Guaranteed thereafter, the deductions proceeds should be taxed.”Whether it customers on the app, BoB
you were to invest a simi- insurance plans claimed earlier are should be treated as income from other said it does not expect any BoB said it does not expect any material impact on its overall
lar amount in a debt are tax free and reversed. sources where it is taxed as per slab rate material impact on its overall business and growth plans. MINT
mutual fund over 20 therefore yield To be eligible for tax or as capital gains is a question that often business and growth plans.
years, the IRR comes to breaks on the maturity arises” If the insurance proceeds are dis- “The size of this is not quite the fraud is unlikely to be goals. “Getting an app down-
6.7%. Post tax deductions,
more returns
amount, the sum assured tributed in case of the policyholder’s big in banking terms and there- much in relation to the profit loaded does not necessarily
considering a 30% income than most debt should be at least 10 times death, there are no taxes to be paid. fore the loss is not like some of and capital position of the mean the right users and
tax slab, the IRR falls to mutual funds the annual premium paid. Kohli of ClientAssociates said inves- the earlier instances in India. If bank,” said a ratings analyst. active use. Staff targets and
4.4%. Thereby, these If in any year, the pre- tors typically prefer to park their you look at some of the earlier The analyst said that, being incentives should also be
guaranteed tax-free plans mium paid exceeds 10% of money for the long term of 10-15 years scams like Nirav Modi, this a public sector bank, BoB is aligned to the right metrics for
yield more returns than most debt the sum assured, the maturity proceeds to get more than 6-7% returns. Equities pales in comparison,” said a unlikely to suffer any liquid- a more sustainable rollout,”
mutual funds. A similar tax treatment are liable to be taxed. have the potential to deliver double- private sector banker on condi- ity issues due to the incident said Parijat Garg, a digital
as that of debt MFs would apply to If the insurance policy is not tax-ex- digit returns (say, around 10-15%). So tion of anonymity, adding that as depositors are likely to lending expert and former
other fixed-income products like empt, a 5% tax is deducted at source even if you pay a 10% tax on equities, what happened was nonethe- take comfort in sovereign senior vice president at credit
bonds and fixed deposits. from the difference between the pre- the returns can be between 9% and 13%, less unethical and wrong. ownership. “However, this information company Crif
To be sure, premiums paid up to ₹5 mium and the maturity amount. For an attractive proposition. Rating agencies are also not raises concerns about the High Mark.
lakh in guaranteed annuity plans are instance, consider that you have paid Kohli, however, has a word of caution too perturbed as far as the effectiveness of the internal Meanwhile, rival lenders,
exempt from taxation at the time of ₹2 lakh as premium over 10 years and for investors. “Taxation should be given financial impact is concerned. audits and control function of especially those from the pub-
maturity. Last year’s budget intro- received ₹5 lakh at maturity. In this some weightage while buying a product “Given the volume of transac- the bank,” he added. lic sector, are keenly watching
duced a provision that denies tax case, a sum of ₹3 lakh (the maturity but it should not be the only factor. Peo- tions required to make a siza- Experts say that it is critical the developments at BoB,
breaks in case the premium paid for amount minus your contribution) is ple should also look at it from an asset ble dent into the profits of the to focus on the right metrics given their own commitments
any policy or policies taken together in subject to a 5% TDS, or tax deducted at allocation approach,” he says. bank, the amount involved in while pushing digitization to digitization.
That way one could avoid running out of money during the instead of 75 years.
retirement years.
Plan retirement with a margin of safety Where do we go from here?
Inflation is a hidden tax that erodes the value of our savings,
and it’s almost impossible to estimate. So, how much inflation
Take a conservative estimate while planning for retirement as
inflation, expected return, and life span are hard to predict.
To sum it all up, let’s consider what it would mean for a couple
in their 30s, bringing in a post-tax income of, let’s say, ₹2.5 lakh
should one consider while planning for retirement? Every indi- Planned monthly expense = 1.5 lakh per month and spending ₹1.5 lakh per month. They are planning
vidual or family’s consumption basket could differ from others’, Optimistic Conservative for their retirement with monthly savings of ₹1 lakh per month
and hence, the level of inflation they face might vary from the scenario scenario over the next 30 years. When planning for a monthly expense of
general inflation in the economy. ₹1.5 lakh with 6% inflation, 10% expected return, and a life expect-
Years to retirement 30 years 30 years
As an academic exercise, if one wishes, they can break down ancy of 75 years, a couple would
their expenses into consumption items and estimate the future Inflation 6% 7% A proactive require a corpus of around ₹14.5 crore.
inflation for each by observing past trends. However, by all meas- Expected return 10% 9% approach Now, let’s bring a conservative lens
ures, this method would be precisely wrong because, as individu-
als age, their consumption basket is likely to change. Being Years in retirement 15 years 25 years ensures people into play and plan retirement with 7%
inflation, 9% expected return, and a life
roughly right involves considering the inflation targeted by the Required retirement corpus ₹14.5 crore ₹26.9 crore don’t run out expectancy of 85 years. In this sce-
central bank (RBI, in our case) to maintain stability. In the case of Shortfall in corpus: -86% Source: SahajMoney
of money in nario, the required retirement corpus
India, this target is between 2% and 6%. To plan for a worst-case retirement would be around ₹26.9 crore.
scenario, it’s advisable to take a further step and plan with 7% However, saving ₹1 lakh per month
inflation. return. As our economy grows, it might slow down, as observed would not be sufficient for the cou-
Now, turning to the estimation of returns from different in the case of developed economies, and consequently, returns ple to reach the required retirement corpus. Therefore, they
asset classes, relying on past returns to predict future returns from equity and debt could be lower. Here as well, one would be need to either significantly cut down their expenses or
would be futile, as past performance may not persist. Consider roughly right by planning with an expected return of 9% instead increase their monthly savings as their income grows over the
an asset allocation, such as an equal distribution between of 10% next 30 years. This proactive approach ensures they don’t run
equity and debt, with an expected return of 12% from equity Finally, according to a government of India report, life out of money in retirement. So, take a reality check and con-
and 8% from debt; the weighted average expected return expectancy at birth in the country is increasing and was sider the facts while planning for retirement if you prefer to
would be 10%. already at 69 years in 2013-17, up from 49 in 1970-75. Again, be roughly right rather than precisely wrong. What steps are
But one could again be precisely wrong since maintaining the it is not advisable to solely rely on past data and plan for, let’s you going to take?
equity allocation at this level throughout their lifetime might be say, 15 years in retirement when one turns 60. It would be pru- Abhishek Kumar is a registered investment adviser and founder
challenging. Also, returns could be lower than the expected dent to plan with a life expectancy of 85 years or beyond of Sahaj Money.
12 ThursDay, 16 November 2023
New Delhi VIEWS LIVEMINT.COM

OUR VIEW THEIR VIEW

MINT

Fliers should resist being wooed

by airlines and stay loyal to none
They should not chase tricky reward programmes when airlines have no reciprocal loyalty to offer

had trimmed many of the benefits of its
Gold and Platinum membership.
Mileage programmes are big business
for airlines, which sell ‘miles’ as a kind of
flying currency to credit-card issuers
and others such as hotels, to give away
in turn to their own customers. How big
is the business? In 2022, Delta sold $3
billion in frequent flier miles. Better yet,
Jeffrey Pfeffer & M. Muneer airlines get much of that money for
are, respectively, chair professor of nothing. For instance, United expects
organizational behaviour at GSB, Stanford that 25% of the miles that it is selling will
University, and co-founder at the non- never be redeemed. Many executives
profit Medici Institute for Innovation. lament the loss of their accumulated air
thus are more likely to think well of it.
Third, there exist levels or tiers, and
we’re told we can ‘earn’ a higher status;
note the language, as the common
expectation is that when we earn some-
thing, that something has real value.
But, of course, free upgrades are largely
a thing of the past on ever-fuller flights
with more people competing for them.
Still, achieving a higher status hangs
like a proverbial carrot in front of the
horse to induce us to try and obtain
something that is of limited value.
Our advice: Wean yourself away from

Rescue Religare from its

miles in two airlines that went bankrupt the idea that your airline mileage bal-
in India—Kingfisher and Jet. ance is like a bank account with actual

W
e all have terrible experiences There has been talk of airlines spin- value—it isn’t. Stop identifying with a
with airline loyalty pro- ning off their mileage arms as separate company that is probably providing
grammes. Four years ago, one companies. Jet had done that prior to ever-worse service at ever-higher pri-

takeover battle dust-up of us shifted loyalty from Emirates to

Finnair because of the unique benefits
offered at the time, only to find last
month that it too has trimmed the bene-
selling a stake to Etihad. In 2023, the
loyalty programme of Delta Airlines,
Sky Miles, was the most valuable airline
loyalty programme worldwide, placed
ces. Cease showing loyalty to an entity
that is not reciprocating your love. And
stop trying to concentrate your trips on
one carrier for the dubious privilege of
fits that set its programme apart. Which at $28 billion. AAdvantage by American learning that the supposed advantages
airline will now deserve our loyalty? Airlines was next with $23.9 billion. The of elite status get reduced almost every
After allegations related to betting app Mahadev reached Dabur’s owners, they contended it’s Millions of Indians have taken to the first non-US airline in the ranking, Luf- year. Instead, book each trip with a psy-
skies after successive earlier govern- thansa, was fifth with $8 billion-odd. chologically clean slate. Find the best
an attempt to thwart their bid for Religare. Amid political intrigue, the law must prevail ments liberalized the airline industry in Complaints about such mileage pro- combination of seat, route and price
India, but suffer packed aircraft and air- grammes are unending. So why do peo- each time you travel.
port lounges, often-delayed flights, and ple fall for them? Reward programmes It seems many Indian travellers have
extra charges for every conceivable ser- employ several psychological principles embraced this advice and their loyalty is

P
oll-season verbal wars, with hard
allegations hurled across camps, are
a given in India. An illegal betting
app called Mahadev recently made
news as part of a political exchange
of charges over a scandal under
investigation, with BJP and Congress leaders
accusing each other of being in cahoots with the
app’s owners. The case got curiouser after its
widening web cast a shadow on a business pro-
posal. Allegations surfaced that members of the
Delhi-based Dabur Group’s promoter family of
Burmans, as co-owners of an Indian Premier
League team, had links with a cricket betting
racket allied with the scandalous app. On Tues-
day, the family flatly denied any involvement
and described the reports not just “false and
baseless,” but also as an “arm twisting” move
made by “vested interests in an attempt to block
the acquisition of Religare Enterprises Ltd by
the Burman family.” This refers to the family’s
open offer to Religare’s shareholders, a buy-out
drama that has unfolded since late September.
The owners of Dabur, a maker of largely desi
yet another offer for a majority stake. Dabur vice—from checking in bags to booking to get us hooked. First, there are those towards low fares, unless the tickets are
India Chairman Mohit Burman told Mint that a a preferred seat, getting a snack or even mileage ‘balances.’ Such quantification paid for by employers or clients. This
talking to a customer service agent. influences judgement and decision- may explain why the full-service airline
new promoter (the family, i.e.) would help lift Well, at least we earned those airline making, according to Contemporary Vistara is still in the red.
restrictions imposed by the central bank and ‘miles,’ as we carefully selected trip Accounting Research. Using terms such By heeding this advice, you would be
also assure Religare access to cheaper credit for routes that enabled us to fly on the air- as ‘balance’ and showing us statements doing what many sophisticated fliers
its revival as a platform. The target company’s line to which we show our loyalty. Too with it causes people to treat even already do. A Deloitte study found that
board, chaired by Rashmi Saluja, not only dis- bad, that loyalty isn’t reciprocated. Air- ephemeral assets as real. And nothing is only 40% of business travellers fly at
line mileage programmes are designed quite as ephemeral as airline miles. least 75% of their air miles on a single
missed the offer price as too low, but reportedly to be psychologically attractive, even Unlike cash, miles expire. Exhibiting airline. Medici research found that most
objected to the bidding party, with letters sent addictive, but as their benefits decrease, hyperinflation on steroids, they are Indians are members to two, three or
to regulators accusing it of fraud (rejected by so too should passenger loyalty. typically worth less each year. more airline rewards programmes.
Burman). Intrigue hovers over the takeover Airlines are free to change their Second, mileage programmes send us After the airlines consistently made
now, especially over what interests oppose it. rewards programmes whenever and cards with our number (and, at a certain schemes less attractive, people got
however they want. Changes, such as level, even luggage tags). The principle wiser and began to resist psychological
Saluja, whose role in Religare’s return from those announced by Finnair, invariably in use here is psychological identifica- baits. That leaves mileage programmes
zombie-zone has been acknowledged even by make it harder to earn miles, obtain bet- tion, aimed at forging a relationship with diminishing value both to airlines
Burman, has denied that a stake reduction she ter seats without paying an up-charge, between the airline and us. We become and customers. It’s better to either sell
made was an ‘insider’ trade, attributing it to a and require ever more miles to get those card-carrying members of that com- or use those miles while you can. Don’t
plan to reinvest in stock options. Meanwhile, free trips or upgrades to a higher class. pany’s loyalty programme. We more accumulate them and lose out like some
Months before its demise, Jet Airways closely identify with the airline, and Kingfisher and Jet loyalists did.
Religare’s market price trends have stirred
speculation over what she could gain through
resistance. Game theory says that probable
pay-offs dictate strategic choices. As for impro-
priety, without evidence of it, nothing can be
said at this stage of any guilt or innocence.
What’s clear—or least unclear—is that while www.livemint.com
New Delhi, Mumbai, Bangalore, Kolkata, Chennai, Ahmedabad, Hyderabad, Chandigarh*, Pune* Saturday, November 16, 2013 Vol.7 No.273 `5.00 in Delhi­NCR/`6.00 outside Delhi­NCR 12 +124 PAGES
+ 20 PAGES LOUNGE

consumer goods, have long sought to diversify violations of law must be probed free of bias and Q&A: The twin lives of
Vikram Chandra >4
SPORTS: After four draws, Anand loses to
Carlsen in fifth game >5

into financial fields—insurance via Aviva, for
scandals of both politics and business must be CONTENT PARTNER
INTERNATIONAL: David Cameron upstages
Commonwealth summit with Jaffna trip >12
ECONOMY: European Union inflation rate
declines to four­year low >12

example—and may have seen enough value in put to proper tests of justice, further blurring of SENSEX 20,399.42 ®

REFORM BLUEPRINT
NIFTY 6,056.15 ® DOLLAR `63.12 ® EURO `84.79 ®

SATISH BATE/HINDUSTAN TIMES

When
GOLD `31,190 Æ 125

QUICK EDIT
OIL $108.16 æ $0.12

Religare, especially its health insurance unit, these two spheres—which idealists once hoped
China to ease
one­child
Wankhede
batted for
Sachin
Cameron in
Jaffna
B ritish Prime Minister
David Cameron’s
visit to Jaffna on Friday
should be a foreign
Quality in a service
or product is not what you
B Y A S TAFF W RITER policy 101 lesson for

Care, to make this financial services firm a good market reforms would cleave apart—could policy rule
feedback@livemint.com politicians in Tamil
························· Nadu. Cameron did what

A little after 10.30 on a hot

Friday morning in Mum-
bai, a deathly silence fell
he thought was right. He
visited Jaffna, the historic
capital of the Tamil
across the packed Wankhede people in Sri Lanka, and
Document released on areas and among ethnic mi- Stadium after Sachin Ten- heard their grievances.
Friday aims to loosen norities.
Enacted in 1980, the policy
dulkar hit a rising ball from
Narsingh Deonarine to Darren
And there were plenty of
those voices.

target. It was also showing signs of recovery make it harder to resolve cases to the satisfac-
capital controls, tackle has been lauded by officials for Sammy in the slips. He was out What Cameron did

put into it. It is what

rising wealth gap and taming a surging population for 74. should have been done
from a years-earlier baby And then that thunderous by Prime Minister
abolish labour camps boom. But economists say it chant of his name broke out as Manmohan Singh. He
risks eroding China’s competi- Tendulkar walked off the pitch had good reason to do
B Y C ARLOS T EJADA tive advantage, draining its la- for perhaps the last time in that and also had an
The Wall Street Journal bour pool of future workers as competitive cricket. The image invitation from the
························· the population ages and puts a of the little man going towards elected leader of that
BEIJING greater strain on the country’s the dressing room while thou- area, C.V. Wigneswaran.

from its 2019 blow, when its founding duo were tion of neutral stakeholders, be they electorates C hina’s leaders agreed to emerging social safety net. sands stood up to salute him This would have served
loosen the nation’s The policy has also come was a sight to behold. It was two purposes. It would
one-child policy and to under fire for local-level abus- hard not to be moved by the not have offended the Sri

the client or customer

give market forces a greater
role in the world’s No. 2 econ-
omy, according to new details
of a blueprint for reform re-
leased on Friday.
es such as forced abortions emotional upsurge for the man Lankan government and
and sterilizations—practices they call God. allowed Singh to see the
that are illegal in China, but Tendulkar was batting to- situation in the north
are sometimes used by local wards what his fans were hop- first hand. India could
officials to meet their family- ing was an inevitable century. then have deepened its

arrested on money-siphoning charges. But the or share-owners. Capital markets, which play a
The proposals follow a four-
day meeting of top Chinese
Communist Party leaders that
ended on Tuesday, and they
represent the first comprehen-
sive road map for reform un-
planning quotas.
On economic matters, Chi-
nese leaders said they would
establish a system for insuring
bank deposits, prepare a mech-
anism for financial bankruptcy
He was in fine nick when he engagement with
came in to bat on the first day Colombo on this
of the match, after the West In- important and volatile
dian batting line-up had col- subject.
lapsed. Two shots on Thursday Instead India wasted
Gen­Next: Rohit Sharma acknowledges spectators after scoring a century morning showed that he was in this opportunity and

gets out of it.

der new Chinese President Xi and ease controls on prices for in the first innings of the second Test match against West Indies at the top form: first a straight drive chose a futile course of
Jinping. energy, water, telecommunica- Wankhede Stadium in Mumbai on Friday. Earlier in the day, Sachin action.
While a preliminary summa- tions and other services. They Tendulkar scored 74 runs. TURN TO PAGE 3®

family’s bid ran into board resistance, turning it key role in how well an economy allots its funds,
ry of the meeting released on
Tuesday was vague, the more-
detailed document released on
Friday sketches an ambitious
reform programme designed
to address problems that Chi-
na faces: maturing growth, ris-
ing worries about a wide
wealth gap and endemic pollu-
hostile. On 25 September, the Burmans, who need clarity on law compliance to do their job.
tion, and increasingly vocal
criticism of Beijing’s handling
of a number of social issues.
“More attention also needs
to be paid to employment, in-
come levels, social security
and people’s health,” the doc-
ument said.
The test now for Xi and Chi-
will also increase the amount
of profits that China’s vast
state-owned enterprises pay to
the government.
It also said it would ease
Sebi to announce DIFFERENTIAL LICENSING
curbs on offshore securities in-
vestments and mergers and ac-
tighter disclosure Chidambaram pitches for
quisitions, without providing
details. The moves follow calls
norms for firms
on Monday different models of banking
by economists for Beijing to
loosen its grip on capital con-
trols and allow private capital
to have a greater role in Chi- B Y A NIRUDH L ASKAR
na’s economy. Economists say anirudh.l@livemint.com B Y J OEL R EBELLO tion with newspapers on 29
China’s traditional reliance on
government investment and
·························
MUMBAI
joel.r@livemint.com
·························
October.
India is opening up the Rajan keeps
exports to fuel its economic
growth is unsustainable, and T he Securities and Ex-
change Board of India
MUMBAI

F inance minister P.
banking sector after a decade
to expand banking services, markets

held over a fifth of its equity and had slowly A haze mustn’t descend on cases that need to be
na’s leaders will be how to im-
plement many of its goals, in-
cluding whether they will be
introduced in coming months
or will be introduced more
gradually. The leadership is
likely to face resistance rang-
ing from state enterprises and
China’s leaders have called for
a greater role for the country’s
growing consumer class in
powering growth.
The document set few firm
deadlines. One of them raises
the proportion of profits state
companies must return to the
(Sebi) on Friday said it will in-
troduce tighter regulations to
improve the disclosure stand-
ards of companies, expressing
concern over the lack of corpo-
rate governance in the country.
“You will be perhaps
shocked to know that today
P E TE R D RU C K E R
Chidambaram on Friday mainly as almost half of the
pitched for differential bank-
ing licences, just as India’s
adult population in Asia’s
third largest economy does not
guessing
central bank is processing ap- have access to banks.
plications for a new set of pri- “I don’t know how estab- B Y J OEL R EBELLO
vate banks. lished banks will shift focus joel.r@livemint.com
“I appreciate the need for and cater to the unbanked ·····················
different models of banking,” people. I sincerely hope that MUMBAI

the bureaucracies that oversee treasury, increasing that rate there are about 1,100 listed Chidambaram told a banking when new bank licences are
R eserve Bank of India

been buying in (via board-okayed preferential tracked—for the rational curiosity they evoke
them to local governments,
which have been frustrated by
attempts at piecemeal reforms
in recent years. A special lead-
ership committee to oversee
reform, which was announced
previously, is supposed to ad-
dress possible resistance,
though the document provides
to 30% by 2020, from a current
range of 5% to 15%.
China also plans to abolish a
controversial labour camp sys-
tem in what the official Xinhua
news agency described as
“part of efforts to improve hu-
man rights and judicial prac-
tices”. Under the system,
companies which are non-
compliant with the require-
ment of clause 35 of the listing
agreement... This means they
have not filed their sharehold-
ing pattern in compliance with
the Sebi rules,” Sebi chairman
U.K. Sinha said, addressing a
conference organized by the
seminar in Mumbai. “I am given out, they are given to (RBI) governor Ra-
happy that some of the appli- people with innovative mod- ghuram Rajan on Friday
cants to RBI (Reserve Bank of els. It will be a pity if the new reiterated his focus on
India) for licence have differ- banks are clones of existing fighting inflation, but said
ent models. We need different banks,” Chidambaram said. “no single data point or
kinds of banks to cater to dif- However, existing banks are number will determine
ferent segments of Indian soci- fretting about the possible our next move”, keeping
ety.” “regulatory arbitrage” these the market guessing on
RBI is currently scrutinizing new banks will enjoy if licenc- what direction the central

allotments too), made an open offer for at least a with their enigma-wrapped riddles. It’s not rare
few details on how it will do so.
The document said China
would significantly ease its
one-child policy, allowing cou-
ples to have two children if one
of the parents is an only child.
Currently, Chinese couples are
restricted to one child except
under some circumstances,
which has been in place since
1957, police are allowed to im-
prison people in labour camps
for up to four years without
formal arrest or trial.
Public outrage over the sys-
TURN TO PAGE 12®
Federation of Indian Cham-
bers of Commerce and Indus-
try. “And there are 900 compa-
nies which are not compliant
with the requirements of cor-
porate governance norms.”
But rather than suspending
trading in the shares of non-
compliant companies, Sinha
26 applications by private enti- es are given to different kinds bank will take in its mid-
ties to run banks. A panel led of banks. quarterly policy in De-
by former RBI governor Bimal “Across global markets, cember.
Jalan will vet the applications there is evidence that different Inflation continues to
and the central bank is expect- rules and regulations leads to be RBI’s focus, the gover-
ed to identify the new bank financial crisis,” said Shikha nor said.
promoters by end-January. Sharma, managing director “We are very focused
RBI governor Raghuram Ra- (MD) and chief executive offic- on controlling inflation
jan, too, has hinted at differen- er (CEO) of Axis Bank Ltd. because it hurts every-

quarter of the ownership pie, which would give for poll-time fare to be economical with the
such as rural dwellers, pilot
programmes in a number of
Mint is also available for R9.50 with
Hindustan Times under a combo offer
NOTE TO READERS said additional regulatory
measures should be taken to
There is no Mint Markets with prevent such issues. In line
today’s edition.
TURN TO PAGE 3®
tial licensing. “Differential li-
censing could mean local area
“We need a level playing
field. Innovations will come
one, particularly poor
people. Saver gets too low
banks which may focus on a from everyone, even profitable
particular area,” Rajan had TURN TO PAGE 3®
said in a post-policy interac- TURN TO PAGE 2®

them veto power on key resolutions and trigger truth. Business mustn’t suffer the same.

GUEST VIEW

The WTO’s reform path remains strewn with hurdles

industries or NGOs gaining access while
R.V. AnuRAdhA MSMEs, farmers or fish-workers from the
developing world get marginalized. Caution
is therefore needed to preserve the core of
the WTO as a member-driven organization.
Then, negotiation aspects require reform.
The challenge at MC-13 is whether the environment, with a view to achieving sus- between like products based on methods of
ideal of multilateralism can be woven into tainable development. The WTO’s preamble production or emissions during production.
each of these areas to ensure meaningful par- recognizes the significance of facilitating In general, it is important that commit-
ticipation in rule-making by all members: cooperation for protection of the environ- ments are implemented harmoniously even
E-Commerce: Since 1998, WTO members ment in a way consistent with needs at dif- as we ensure that unilateral trade measures
have been progressively extending a mora- ferent levels of economic development. do not hamper trade and climate change

T
he next World Trade Organization
(WTO) Ministerial Conference
(MC-13) is scheduled next February in
Abu Dhabi. In the first piece of this two-part
series, I discussed the need for dispute set-
tlement reform, agriculture and fishery sub-
sidies. In this piece, I take up other agenda
imperatives for the ministerial meeting.
The MC-11 had opened up WTO processes
for plurilateral discussions between a few
groups of members, a significant departure
from the practice of multilateral negotia-
tions. The process of small clubs is inher-
ently exclusionary. But it does not have to
be. The SOM summary highlights two initia-
tives—Services Domestic Regulation (DR)
torium on customs duties for electronic The SOM summary notes a need to ensure mitigation. The WTO is reportedly working
transmissions. With rising that trade serves as a solu- on a methodology for determining carbon
product digitalization, tion to our climate crisis. prices aligned with the obligations of mem-
however, there has been a Its Abu Dhabi This will need open and bers under the Paris Agreement. A formal
rethink among developing clear discussions, particu- process to discuss this proposal should be
countries on the implica- meeting must larly about the need to hon- initiated in Abu Dhabi.
tions of the moratorium, our obligations under mul- TRIPS waiver: The MC-12’s TRIPs deci-
particularly when imports
overcome many tilateral environmental sion achieved agreement on a limited intel-

is a partner at Clarus Law

Associates, New Delhi, and
specializes in international
economic and environmental
laws.
There is unanimity among members on
the need for WTO reform. Their opinions,
however, differ on the processes for it. The
MC-12’s outcome chose its words carefully in
emphasizing reform through a “member-
driven process.” The Senior Officers Meet-
ing (SOM) summary points to a need to
“engage with a wider cross-section of stake-
holders.” It is clear that governments under-
take their own consultative processes with
businesses, NGOs, etc. The WTO also orga-
nizes annual public forums for non-govern-
ment stakeholders. However, any opening
up of the WTO’s inter-governmental struc-
ture to direct engagement by external stake-
holders would run the risk of resource-rich
and Investment Facilitation for Develop-
ment (IF). Of these, the need for disciplines
on DR is embedded in the WTO’s General
Agreement for Trade in Services, and India
had been a proponent of multilateral negoti-
ations till about 2011. The issue of IF does not
have any specific negotiation mandate, but
negotiations since 2017 have resulted in sup-
port from 112 out of 164 members. Members
like India and South Africa have stayed out
of those joint initiatives as a matter of princi-
ple—that such plurilateral initiatives drive a
wedge in the framework of multilateralism
and put on hold the unfinished business of
mandated negotiations, such as the one on
public stock holding for food security.
of digitalized products are
high. In a 2019 research
challenges to agreements, such as the
Paris Agreement, including
lectual property (IP) waiver for covid vacci-
nes after tenuous discussions on balancing
paper, UNCTAD estimated
that the potential tariff rev-
effect changes on technology transfers
and financial assistance—
IP’s role in stimulating innovation and the
need for a waiver to ensure affordable access
enue loss to developing that uphold promises that remain to life-saving vaccines. Members, however,
countries was $10 billion in unfulfilled. Also crucial is a differed on the waiver’s extension to covid
2017. Members need a multilateralism need to call out unilateral diagnostics and therapeutics to December
common understanding of trade measures such as the 2022. Eleven months down the line, this has
the scope of that morato- European Union’s (EU) not been settled, and the SOM summary
rium so that it does not usurp policy space, Carbon Border Adjustment Mechanism, kicks that goal post to the MC-13.
particularly for services such as 3-D printing which, by mandating that imported prod- Can the MC-13 deliver? The path to success
or IT-enabled services. ucts meet the same level of emission norms is strewn with challenges. It will need deft-
Trade and the environment: The WTO has that the EU implements, runs counter to the ness and dedication to arrive at an outcome
always had a dedicated Committee on Trade balance of differential commitments under that marks progress and upholds the recent
and Environment, tasked with understand- the Paris Agreement. These also go against G20 vote of confidence in multilateral solu-
ing the relationship between trade and the the WTO obligations of not differentiating tions which work for all.
LIVEMINT.COM VIEWS ThursDay, 16 NoVEmbEr 2023
NEw DElhi 13

MY VIEW | StAtIStICAllY SpeAkIng M I N T C U R AT O R

India may need to reconsider its Foxconn forays into satellites

and EVs as iPhone inflows flag
indicator for inflation targeting The Taiwanese manufacturer is keen to display new capabilities

The government could re-examine its 2016 legislative mandate and modify RBI’s inflation target to cover both WPI and CPI

BLOOMBERG

TiM CuLpAn
is a Bloomberg Opinion columnist covering
technology in Asia.

T.C.A. AnAnT
is a former chief statistician of India.

Y
ou can make a pretty good living
supplying more than two-thirds of

I
n my last article, I had discussed the different
measures of inflation and closed by pointing
out that the divergent behaviour of the Con-
sumer Price Index (CPI) and Wholesale Price
Index (WPI) creates a challenge for monetary
authorities. In order to understand this issue,
it is worth taking a step back to understand recent
developments in monetary policy in India.
India adopted an inflation targeting regime in
2015, initially as an agreement with the Reserve
Bank of India (RBI) and subsequently through an
amendment to the RBI Act. This decision was
based on a recommendation of the Urjit Patel
Committee to the RBI in 2014. This panel also rec-
ommended using the CPI produced by the Central
Statistics Office as the indicator for this purpose.
Till then, RBI had used WPI as the main indicator
in monetary policy discussions. The reasons for
choosing the CPI over WPI were that the latter did
not capture price movements in services, and that
CPI better captured the inflation experience of
consumers. Another factor in favour of the CPI was
that it showed similar inflation momentum to the
CPI-IW (a CPI for industrial workers which is
widely used for Dearness Allowance adjustments
for both government and public sector employ-
ees), but was released much faster, and also had a
robust price reporting mechanism.
One of the elements behind the choice of CPI as
an indicator for inflation targeting was the feeling
that it would be better able to reduce households’
inflation expectations. In this connection, the com-
mittee made the following curious observation:
“An examination of the quantitative inflation
expectations of households shows that inflation
expectations tended to follow WPI inflation during
2008-09. Post-2011, however, they seem to be fol-
lowing CPI inflation.” (Para II.33)
This striking observation, however, has so far
not been adequately analysed. As the committee
had noted, the CPI-IW has a similar inflation
momentum to the CPI, but has a much longer time
series available. This allows us to do a long term
comparison of the CPI-IW with WPI. The accom-
panying graph tracks the CPI-IW and WPI from
April 1983 till now. It may be observed that till
about 2011, CPI-IW and WPI track each other quite
closely, except for two significant periods. The first
occurs around October-November 1998, when
CPI-IW inflation had a value of almost 20%, com-
pared to a WPI inflation of 7%. The second devia-
tion occurs in June 2009, when the WPI index has
a value of -0.39% as against CPI-IW inflation of
9.29%. Other than these two striking differences,
there is broad coherence between the inflation
rates of the CPI-IW and the WPI.
Both these episodes have specific reasons attrib-
uted to them. In the first instance, very large CPI
inflation was attributed to unusual behaviour in
vegetables, as reflected in the onion price behav-
Inflation tango WPI data. Negative WPI inflation in agricultural
goods, particularly in horticulture, is not unusual
There was broad coherence between inflation as and is often a seasonal phenomenon linked to
per CPI-IW and WPI from 1983 to 2011, after which cycles in agricultural production and inadequate
divergences grew storage and processing capacity. However, its pres-
20
CPI-IW WPI
ence in the manufacturing sector is more disturb-
ing. Disaggregated data reveals that negative infla-
15 10.68 tion is not limited to a few commodities, but is
quite broad-based. During 2015-16, as many as half
10 8.91 of the commodities for which price data was col-
lected exhibited long periods of negative inflation.
Similar patterns emerge in later episodes as well.
5 7.21 Negative inflation in manufacturing is impor-
tant because of the disincentives created. Negative
0 inflation implies that the prices the manufacturer
receives at the time of sale are typically less than
-5
what prevailed when production began. It may not
-0.52 be a coincidence that this period saw repeated ref-
erences to manufacturing distress and a crisis of
-10 non-performing assets.
Apr 1983 Aug 2023
It should be pointed out that this phenomenon is
Source: Author's compilation
not limited to India. A recent NBER working paper
SATISH KUMAR/MINT
(‘The Wedge of the Century: Understanding a
iour at the time. The second episode occurs during Divergence Between CPI and PPI Inflation Meas-
the Global Financial Crisis. ures’) highlights that “the two inflation gauges did
This long coherence between the WPI and co-move strongly in the last century but the corre-
CPI-IW does explain in part the committee’s lation has fallen substantially since the start of this
observation that inflation expectations closely century.” This disconnect between the CPI and
track WPI till 2011. Post 2011, however, we find that WPI/PPI (producer price index) that has emerged
the WPI exhibits a markedly different behaviour in recent decades poses a special challenge for cen-
from the past, and also diverges from the CPI-IW tral banks: Too strong a focus on inflation targeting
on many occasions. The striking elements which focused on the CPI risks driving the economy into
may be noted are the following: a recession and adds to problems in the manufac-
First, inflation as measured by the WPI was con- turing sector. The paper goes on to suggest that
sistently negative between November 2014 and “this divergence [is] based on a lengthening of
June 2016; between October 2019 and July 2020; world production chains since 2000.” The article
and once again from April 2023 onwards. These goes on to point out that PPI may be a better indi-
long periods of negative WPI inflation are striking cator for inflation targeting. This view is finding
because the WPI has never been negative in the increasing resonance among many analysts. It is to
previous 30 years, except for that short period the credit of RBI that in the last few years, it has
during the Global Financial Crisis. been sensitive to this risk and been willing to toler-
And secondly, after 2011, the WPI shows much ate CPI inflation at the upper band of the mandate.
higher volatility compared to CPI-IW. It is worth asking whether the government
This changed behaviour of the WPI occurs should relook at the legislative mandate it created
around the same time as when India adopted its in 2016 and modify the inflation target to cover
inflation targeting regime. In fact, the first period both the WPI and CPI. It would be even better if
of sustained negative WPI inflation occurred after The Office of the Economic Advisor expedites
the Urjit Patel Committee submitted its recom- implementation of the recommendations of the
mendations. Working Group on PPI to launch an experimental
Why does this matter? In order to appreciate the producer price index as the first step in moving to a
implications of negative WPI inflation, it is neces- regular index. This would facilitate an RBI shift to
sary to examine disaggregated commodity-wise an inflation target based on the PPI.
the world’s most-famous consumer
gadget. Except when demand for that high-
priced smartphone starts to wane and
you’re left looking for the next big thing.
With the boom gone, the world’s largest
consumer-electronics manufacturer has
little choice but to make new bets.
Foxconn Technology Group’s second-
straight slide in sales lays bare it’s folly of
relying on Apple for more than half its
business just as the iPhone designer is
experiencing its largest slowdown in 22
years. A 12% drop for the third quarter puts
Hon Hai Precision Industry Company,
Foxconn’s listed flagship, on track this
year for its worst decline in history. On
Tuesday, the company reiterated that
each of its divisions would fall, or, at best,
end 2023 flat.
Four years after taking over from
founder Terry Gou, chairman and CEO
Young Liu no longer has the luxury of
hyped-up iPhones and runaway demand
for Sony Group games consoles to juice
sales. Instead, he’s had to branch out into
sectors that, on the surface, look well out-
side Foxconn’s wheelhouse. That includes
products previously limited to industrial
companies such as cars and satellites.
Despite a major presence in electronics
including computers, servers, games
machines and handsets, the company ded-
icated much of its annual showcase last
month to electric vehicles (EVs). It has
developed at least five EVs of its own and is
working with global carmakers including
Stellantis to manufacture future models. A
cameo from Nvidia founder Jensen
Huang—to show off their joint develop-
ment of AI servers—was one of the few
hints that Foxconn is actually focused on
anything beyond challenging Tesla and
Toyota in the global EV market.
It’s no mistake that Huang and Liu kept
using the somewhat confusing term “AI
factory”—which simply means servers that
collate and process data for use in artificial
intelligence. They aren’t trying to sell to
the iPhone and PlayStation crowd. Their
audience is executives at industrial enter-
prises with billion-dollar budgets who see
AI as the future of business.
Among the payload of SpaceX’s Trans-
porter 9 rocket were Pearl-1H and
Pearl-1C, Foxconn’s first low-earth orbit
satellites. There’s no money to be made
from these two nano-satellites—instead
the company is using them as a demon-
stration of its ability to build what
amounts to computers that fly among the
Foxconn has recognized the folly of relying
too heavily on Apple Inc. REUTERS
stars, devices that need to be robust, relia-
ble and able to withstand the rigours of
space travel.
It also points to another more subtle
change that’s underway at Foxconn. Many
of the most popular consumer devices
over the past 20 years were made at the
company’s factories in China, including
Sony’s PlayStation, Apple’s iPhone, lap-
tops from Dell Technologies and HP, and
smartphones from Xiaomi. In the future,
more of Foxconn’s products will be
bought by companies rather than con-
sumers. It’s already a major supplier of 4G
and 5G communications systems sold by
European clients.
Most people will not purchase a satel-
lite, but factories, trucks, ships, aircraft
and logistics providers will increasingly
rely on them to keep information flowing.
Those two Pearls, orbiting Earth at 520km
off the surface, are designed to show off
Hon Hai’s work in broadband communi-
cations and next-generation networks
that go beyond 5G technology.
Global technology companies are try-
ing to figure out what’s to come after suc-
cessive booms in desktop PCs, mobile
phones, laptops and smartphones. Indus-
trial enterprises aren’t waiting.
Carmakers, satellite companies, factory
operators and infrastructure providers are
moving quickly to adapt. Whereas Tesla
once had the EV market almost to itself for
a decade [at least in the West], every major
car company is now adamant that they too
will be EV players. Foxconn sees that as an
opportunity. The external manifestation
of this new plan is a line-up of vehicles
ranging from sedans and SUVs to tractors
and buses. But the true money-maker is
inside, with all the cables, components
and microcomputers that a modern vehi-
cle needs to function. For years, this parts
market was left almost exclusively to car-
makers and an industry of direct suppliers.
Now, electronics companies want in.
Foxconn’s satellite launch is part of this
trend. The Taiwanese electronics giant is
hoping to remind clients and investors
that it has more tricks up its sleeve than
deploying a million workers to assemble
consumer gadgets. It just needs to find a
new set of customers who will trust it to
build products for the next industrial
boom. ©BLOOMBERG

MY VIEW | BehAvIOur BY BrAIn

Bombardment strategies display diminishing utility

On 7 September 1940, Hitler started his
BIJU DOMINIC nation’s ruthless bombing of London to
break the British will to fight. Over the next
few months, German bomber aircraft
dropped more than 80,000 bombs on Lon-
don. A million buildings were destroyed.
encountering one of the greatest, perhaps
the greatest miscalculation of the war.”
Most interestingly, the behaviour of survi-
vors was the same in German cities as in
London. After bombing raids, people would
help each other out, extinguish fires and res-
we indulge in that task more often, the sense
of risk attached to that task reduces. This
explains why it is often experienced workers
who meet with accidents at the workplace.
It is because of this inherent adaptation abil-
ity of the brain that residents of a city under
can be used as highly visible showpieces of
their ‘decisive’ leadership style. As it hap-
pens, such ‘decisive actions’ sometimes do
help their chances of electoral victory. The
war in Iraq helped George W. Bush win a
second term, while the war in Afghanistan

C
an a nation be bombed into submis-
sion? Does destruction of a nation’s
infrastructure destroy the morale of
its people? Will ordinary citizens become
panicky and turn against their leaders for
having brought the wrath of attackers upon
them? These questions that are now being
asked in the context of the Gaza conflict
More than 40,000 people lost their lives. cue victims from the rubble. So, bombings
Entire neighbourhoods were destroyed. In actually helped build
retaliation, Churchill ordered the bombing stronger bonds among
of German cities. When it finally ended, Ger- locals. There were shop- The human
man towns had ten times more casualties. keepers who posted signs
Most of urban Germany was a heap of in front of their wrecked mind is such
smouldering rubble. How did ordinary folks shopfronts that said “More
react to the destruction all around them? Open Than Usual.” But
that bombing
continual bomb attacks get inured and
‘numb’ to bombardment.
During World War II,
Hitler, Churchill and the
military establishment did
not want to accept this real-
ity about human behav-
iour. Latter-day bomb-
helped Barrack Obama win a second term.
The real impact of these bombings on
ordinary citizens was best captured by the
report of Wing Commander Kelly , the air
attache in Shanghai when Nanking was
attacked by Japanese forces during World
War II. He reported that “Bombings were
materially incapable of affecting the will to

is chief evangelist, Fractal

were also asked even during World War II.
During World War II, Sir Maurice Hanley,
Analytics, and chairman,
FinalMile Consulting.
secretary of the Committee of Imperial
Defence (CID), feared a widespread psycho-
logical breakdown in British cities in case of
German bombings. Thousands of troops
were to be drafted to control an expected
exodus from London and to prevent panic at
railway stations. Some reports suggested
that London’s population will “regress to a
state of infantile dependency” and will
refuse to leave the safety of underground
bomb shelters. Expecting an epidemic of
psychiatric casualties, specialist hospitals
termed ‘Neurosis Centres’ were opened on
the outskirts of London.
Frederick Lindermann, scientific adviser
to Churchill, send a team of psychiatrists to
Birmingham and Hull, two cities that had
taken the heaviest toll during the German
blitz. The team interviewed hundreds of
people affected by the bombings. The con-
clusion of the team was printed on the title
page of their report: “ There is no evidence of
breakdown of morale.” After the war, a team
of economists studied the effects of bombing
on German cities. After their investigation,
the team concluded that civilian bombings
were a fiasco. In fact, they appeared to have
strengthened Germany’s war-time econ-
omy, thereby prolonging the war. One
American economist confessed, “We were
military planners of the
time failed to understand
doesn’t break mongers too did not want
to accept this truth. In Viet-
resist or of producing panic. Even when con-
tinued for weeks. It merely produces a
these vagaries of human
behaviour.
civilian morale nam, US forces dropped
about three times as many
strong feeling of hatred, which indirectly
strengthens the defences.” This feeling of
Thanks to brain plastic- but may harden bombs as they dropped in hatred aroused in victims of bombings men-
ity, we humans are adept at all of World War II. This tioned in that report is often taken advan-
making behavioural and hostilities time, the failure of the tage of by opportunistic extremist leaders to
emotional adjustments to bombs to make any impact mould future extremists. The humiliation
what is happening in our on the local population was imposed on Germany by victors of World
environment. Whether it is a foul smell or even more stark. Despite its failure to make War I after it had ended (think Versailles)
loud noises around us, our brains adjust to much of an impact on the local population, became a fertile ground for Adolf Hitler to
those stimuli very quickly. This adaptation why do politicians continue to favour war ignite fires that led to World War II.
process of the brain affects how humans per- strategies of bombing? Those involved in the Gaza conflict
ceive risks too. The feeling of risk that we For politicians, often all that matters is should remember a truth from history: The
associate with a dangerous task will be high winning the next election. Bombings and impact of bombs on human lives is not as
when we do that task for the first time. But as the destruction caused in enemy territory straightforward as it looks.
14 ThursDay, 16 November 2023
New Delhi BUSINESS OF LIFE CULTURE LIVEMINT.COM

An unsolved
murder and an
art exhibition
Stéphane Mandelbaum at the Drawing
Center is not your usual show

With Art Mumbai, the

city gets its own art fair ‘Composition (mask figure), 1981’

Agencies
feedback@ivemint.com
STÉPHANE MANDELBAUM ESTATE

Though Mumbai is home At the same booth, visitors can browse
through the ‘The Fantasy Collection’ curated by
to noted galleries, which Mortimer Chatterjee of Chatterjee & Lal, Mum-
bai. The selection explores M. F. Husain’s early
regularly organize creative output during the 1940s while working
contemporary art weeks, for Fantasy, a pioneering nursery furniture
company based in Bombay. The collection
it is only now that it is comprises hundreds of artefacts preserved by
the Moizuddin family, the founders of the busi-
getting its first art fair ness, including drawings, painted renderings,
wooden cut-outs and advertisements for which
Husain was responsible.
Riddhi Doshi Among these is the Lotus Suite of nursery
feedback@livemint.com furniture commissioned by the Late Rani Sav-
ita Kumari Devi of Katesar. The book on the
umbai has had an unassaila- collection, to be launched at the fair, will also
I
t’s a bizarre story, even for the art world. In 1986, a promising
25-year-old Belgian artist named Stéphane Mandelbaum was
ever so slightly adrift. As he struggled to make it as an artist, he
began to pick up work for what seems to have been Brus-
sels’ criminal underworld. His first known job was a theft of net-
suke figurines, a type of Japanese miniature sculpture. After
that, Mandelbaum was recruited to steal an Amedeo Modigliani
painting from a wealthy woman in the suburbs. Incredibly, he
managed to pull off the heist, only to discover the stolen paint-
ing was a fake. In a sequence of events that’s still debated, Man-
delbaum seems to have insisted on being paid for his efforts, at
which point he was shot in the head, acid was poured over his
face, and his corpse was dumped in a desolate section of the city.
No one was ever charged.
Mandelbaum wasn’t a famous artist during his lifetime, but his
death briefly occupied the French and Belgian headlines. It took
another 30 years for anyone to start seriously paying attention

M ble link with the arts. This is

where one of India’s oldest
art schools, the Sir Jamsetjee
Jeejeebhoy School of Art, or
the Sir J.J. School of Art as it is popularly
known, was founded in 1857. The Indian Insti-
tute of Architects, founded in 1929, laid the
groundwork for Mumbai’s Art Deco buildings
at the ‘The Ideal Home’ fair in 1937. The city
also bore witness to a pivotal moment in Indian
art history when the Progressive Artists’ Group
came together to create a new vocabulary of
Indian modernism.
Though Mumbai is home to noted galleries,
which regularly organise contemporary art
weeks, it is only now that it is getting its first
prominent art fair. Art Mumbai will be held
from 16-19 November at the Mahalaxmi Race
Course. The event has been envisioned by
Minal and Dinesh Vazirani of Saffronart, Conor
Macklin, director, Grosvenor Gallery, London,
and Nakul Dev Chawla of the Chawla Art Gal-
lery, New Delhi.
The four-day event will see participation of
53 galleries from different cities of India, the
Middle East, London and New York. Art
enthusiasts will get to see the length and
breadth of Indian art, from the works of mod-
ern masters such as M.F. Husain and Amrita
Sher-Gil to mammoth installations by the likes
of Paresh Maity.
Besides showcasing the different facets of the
art ecosystem, Art Mumbai will include a host of
events such as heritage walks to Koliwada, din-
ners at art collectors’ homes, a discussion on
Indian cinema and culture with Karan Johar,
and walk-throughs at the sculpture garden.
Art Mumbai comes 15 years after Delhi’s India
Art Fair. “We had been thinking of organising a
delve into the development of an aesthetic
deeply rooted in Indian village life, which
would later become an integral part of Husain’s
illustrious career.
The moderns and pre-moderns will be seen
at various other gallery booths as well. For
instance, DAG will be showing the works of Raja
Ravi Varma, Jamini Roy, Nandalal Bose,
Thomas Daniell, GR Santosh, Meera Mukherjee
and Akara Modern will exhibit works by Amrita
Sher-Gil.
(top) ‘Rain bearing Clouds & Rain Mother’, Abhishek Singh, courtesy Ojas Art; (above) ‘Wheel’, Gigi It’s heartwarming to see galleries and insti-
Scaria, courtesy Chemould Prescott Road tutions pay a tribute to the late Vivan Sunda-
ram. Akara Modern will be showing an Unti-
fair in Mumbai even before the covid-19 out- dhy. Also on display will be Shakuntala Kulk- tled painting from the early phase of his
break, but put it on hold because of the pan- arni’s works, which were shot in parts of the career—from 1962. The Kiran Nadar Museum
demic,” says Dinesh Vazirani. “Now feels like city, and Gigi Scaria’s photographs with the of Art has put together a dynamic body of
the right time as the art market has gained quite Bandra-Worli Sealink in the background before work, spanning drawings, photographs,
a bit of momentum.” it was completed. assemblage and installations, to showcase the
According to him, both individual and insti- At the Saffronart Foundation booth, one will artist’s prolific journey.
tutional collectors are buying art for consump- get to see works of Rajyashri Goody, Farah Another highlight of the fair is Paresh Maity’s
tion and not necessarily for investments. “It’s Mulla, Prajakta Potnis, Ayesha Singh and 30-feet-tall steel installation Utopian Dream
not a speculative market, which is great,” adds Prarthna Singh, chosen for the Women to City, by Delhi’s Art Alive Gallery, which is an ode
Vazirani. Watch (NMWA) exhi- to the maximum city. For those interested in
The galleries are bition programme, to Indian contemporary art, visit Experimenter’s
trying to add ele- The four-day event will see be held from 14 April booth to view works of Kallol Datta, Bhasha
ments that feature the participation of 53 galleries from to 11 August next year Chakrabarti and Sohrab Hura.
city in some way. For
instance, Chemould different cities of India, Dubai, at the National
Museum of Women in
Another interesting element of the fair is the
Art Mumbai Sculpture Garden featuring Harsha
Prescott Road will be London and New York the Arts, Washington. Durugadda’s seven-foot sandstone sculpture
displaying “Bombay- The programme is titled Pyramidal Love. Carved in sandstone, it
centric photos,” says designed to increase resembles a close-knit stack of pyramids. The
Shireen Gandhy, director of one of the oldest the visibility of, and critical response to, promis- forms seem to emerge from the ground inter-
galleries in the city. At the centre of the show- ing women artists at any stage of their career. secting and overlapping with each other to
case is Pushpamala N’s Phantom Lady -2, a The five artists shortlisted by the Indian com- reach a union at their pinnacles implying
series of pictures in which she poses as two pro- mittee for the Women to Watch programme growth and metamorphosis.
tagonists—a stunt woman and a lead actor. “The will be in conversation with NMWA committee If all goes well, the fair might just become an
entire series was shot in the old drive-in theatre member, Ilene Gutman, and the India commit- annual fixture, adding to the art ecosystem in
in Bandra before it was demolished,” says Gan- tee chair, Minal Vazirani. Southeast Asia.
to his art. Now, after a small show of his work at the Pompidou in
Paris in 2019 and a subsequent exhibition at the Museum of Mod-
ern Art in Frankfurt (MMK) last year, Mandelbaum’s work will be
introduced in the US at New York’s Drawing Center in SoHo.
“At first, I really wanted the exhibition to be additive and
provocative,” says Laura Hoptman, the Drawing Center’s exec-
utive director, as she walks through the show. “Additive,
because this is a completely unknown voice we’re adding to the
art discussion,” she continues, “but I also wanted to broaden
the notion of history, memory,
Mandelbaum trauma and identity.”
wasn’t a famous There are roughly 60 works on
paper in the show, along with a single
artist during his painting. Sixteen pieces are large—
lifetime, but his about 5 feet tall—and they run the
death occupied gamut from portraits of friends and
headlines family members to exquisite albeit
defaced renderings of the Nazis Joseph
Goebbels and Ernst Röhm. Many of
the works include lewd elements. “They could be considered
juvenilia in a way,” Hoptman says, “but who makes these 5-foot-
tall ginormous drawings of Nazis if you’re not trying to do some-
thing in a public way?“
After the Pompidou exhibition, Mandelbaum’s reputation
began to grow. The Zlotowski gallery has brought several of his
pieces to art fairs, and a flurry of his work has begun to show up
at auction, though the results have been mixed. The most recent
piece up for sale—a drawing at a small auction house in Brussels
estimated at €4,000 to €6,000 ($4,300 to $6,400)—failed to find
a buyer. But in May, a pen on paper drawing on notebook
paper sold at a different Brussels auction house for €18,500, well
above its high estimate of €5,000.
It’s Mandelbaum’s raw talent combined with his conflicted
relationship with his Jewish heritage that gives the New York
show a contemporary topicality, says Hoptman.
“Maybe there will be an excess of sympathy, in a way, for his
struggles,” she says. “Or maybe it will engender some sort of
righteous anger. But it certainly is about grappling with who you
are, and who you want to be.”

Are you a food nerd? Then this new festival is for you ISTOCKPHOTO

A two-day festival will taurateurs, small business owners, food dishes for the Food Nerd Market. “In a
photographers, content creators and first-time-ever collaboration, Chennai’s
bring together chefs, authors. Kase Cheese and Bengaluru’s Loafer & Co
entrepreneurs and The festival is an extension of an invite- will be presenting delectable sandwiches.
only Christmas party called the Food Nerd It’s Bengaluru, so there will be hot dosas
others from across the Party, which was held in Bengaluru in from Malgudi Mylari Mane. For kombu-
food ecosystem 2021 and 2022, to form connections over cha lovers, there’s Umami Brew and for
the love of food and drinks. noodle bowl enthusiasts, there’s Burma
“More than a party, it was a space for Burma,” says Oommen.
Aisiri Amin ideas, collaboration, and exciting connec- The Food Nerd comes at the right
aisiri.amin@livemint.com tions. And we wanted to scale that up,” moment, with the food and beverage
says Anisha Oommen, co-founder of Goya industry being “on the cusp of a very excit-

T
here is one thing that brings the pas-
sionate people of Bengaluru
together. No, it’s not a discussion
about traffic, but food. Over the years,
people from all across the country have
made the city their home, and they have
brought in their own influences and inter-
ests, resulting in a smorgasbord of food on
offer. From donne biryani to khow suey,
there are abundant cuisines to discover,
which makes the city a perfect location for
the first-ever Food Nerd festival, to be
held later this month.
The two-day food festival has been
organised by media house Goya Journal
and Edible Issues, a collective run by Anu-
sha Murthy and Elizabeth Yorke to foster
conversations around the future of food.
The event, to be held between 24-25
November, will bring together chefs, res-
Journal. “This year we are bringing a festi-
val that nurtures the food and beverage
(F&B) community.”
The organisers regularly work with
small businesses, who often have a bunch
of questions about how they can grow,
reach a wider audience, and create a
brand. This festival is a platform to get
answers to those questions from the
experts from the food ecosystem and
beyond.
Chef Thomas Zacharias, founder of
Locavore, pastry chef and founder of Le 15
Patisserie Pooja Dhingra, and illustrator
Alicia Souza will talk about leveraging
one’s personal brand to grow a business.
Communications consultant Radhika
Misra, and Diaspora Co’s Sana Javeri Kadri
will share advice on how to build a people-
centric enterprise. In another panel,
One of the highlights of the festival is
the Food Nerd Labs featuring four work-
shops themed ‘Salt’, ‘Fat’, ‘Acid’, ‘Heat’.
These will be hands-on sessions in topics
such as fermentation, curing of meats,
cheese pairings, and spice appreciation.
The festival has also partnered with brands to curate dishes for the Food Nerd Market “This is open to anyone interested in
learning these food techniques, not just
Kainaz Messman, founder of Theobroma, receive aids and material containing business owners,” Oommen explains.
Akhila Srinivasan from Bengaluru’s The insights of leading entrepreneurs such as These workshops will be led by the
Conservatory, and Rajeev Srivatsa, Anand Virmani of Nao Spirits, Fiona Ara- Cheese Collective’s Mansi Jasani, and
founder of Urban Ladder, will discuss the kal of Ishka Farms, and Matt Chitharanjan, Kadri of Diaspora Co.
pros and cons of scaling a business. the co-founder of Blue Tokai, Anirudh The festival has also partnered with a
People attending the panel will also and Anvesh, founders of Brik Oven. range of brands to curate a selection of
ing time”. From innovation to market
demands, today there is always something
to look forward to. However, not everyone
has access to knowledge about how to
build and grow businesses and there is no
platform for sharing this knowledge. “My
favourite quote is all boats rise with the
tide. So, if one of us does well then all of us
do well. That’s the intention of the festival,
to be a space where we contribute to each
other’s growth,” says Oommen.
The festival ends with an afterparty,
where people can network and hang out
with fellow food-lovers. The Food Nerds
After Hours will be headlined by a collabo-
ration between Dhingra of Le 15 and
Vinesh Johny of Lavonne.
The Food Nerd festival will be held on
24-25 November at Courtyard & Conserva-
tory, Shanthinagar, Bengaluru.
 NEw DElhI, mumbAi, beNGALuru, kOLkAtA, cHeNNAi, AHmedAbAd, HyderAbAd, cHANdiGArH*, PuNe*, LuckNOw* VOL. 17 NO. 273

Thursday, November 16, 2023

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