MUMBAI, NEW DELHI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE*
147
Tuesday, June 22, 2021
mint primer
What do the new
hallmarking rules
mean for you?
From 16 June, jewellers have been allowed to sell only hallmarked gold
jewellery and artefacts. The government has planned a phase-wise
implementation of mandatory hallmarking under the Hallmarking of
Gold Jewellery and Gold Artefacts Order, 2020. Mint explores:
Sign of purity
Hallmarking signifies that the gold jewellery is of the same quality as
promised by the jeweller. Hallmarking of gold jewellery is allowed in 14, 18,
20, 22, 23 and 24 carats.
Know how pure is your gold
Purity (in %)
91.7
83.3
75
58.3
14 18 20
Caratage
1 What is hallmarking
and what does it cost?
Hallmarking is a certification of
purity given by assaying and
hallmarking centres (AHCs)
accredited by the Bureau of Indian
Standards (BIS). It signifies that
the gold jewellery is of the same
quality as promised by the jeweller.
There are four basic signs of
hallmarking —the BIS mark
denoted by a triangle; the caratage
(22K915) showing purity; the mark
of the jeweller; and that of the
accredited BIS. Hallmarking of
gold jewellery is allowed in 14, 18,
20, 22, 23 and 24 carats. The
hallmarking charges are ₹35 plus
GST per piece, irrespective of the
weight of the jewellery.
4 Can I check if the
jewellery is genuine?
There is a malpractice called
“dabba hallmarking” wherein
certification is done without due
sampling or verification, or fake
hallmarking. A jeweller can also
put the sign of hallmarking on its
own by buying the machine. You
can ask for the jeweller’s BIS
registration or licence number.
Jewellers are required to
prominently display this licence in
their sales outlets. You can also get
the jewellery checked at the AHCs
by paying₹200 as charges. In case
of fraud, the jeweller will have to
pay penalty.
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VOL. 4 NO.
livemint.com
QUICK EDIT
India’s
FDI gush
India has fared reasonably well
in attracting foreign direct
investment (FDI) during a pan-
demic. According to the World
BY RENU YADAV Investment Report 2021 of the
UN Conference on Trade and
Development, our FDI total
climbed 27% to $64 billion in
2020. The country was the
world’s fifth-largest recipient.
This is especially impressive
in a year when global FDI flows
slumped by more than a third,
to $1 trillion. What helped keep
Four signs to look for in your
hallmarked jewellery money moving across borders
99.9 THE BIS mark were acquisitions in the infor-
95.8
denoted by a triangle mation and communication
technology (ICT) space, driven
THE caratage by demand for all things digital.
India saw huge investments
THE mark of the
jeweller
from overseas in Reliance’s Jio
Platforms, as the ICT-pivoting
THE mark of the business forged partnerships
assaying and with some of the world’s most
22 23 24
hallmarking centres
cash-rich tech companies.
Source: Mint Research, Bureau of Indian Standards (BIS)
These mega-deals reflected
SARVESH KUMAR SHARMA/MINT
optimism in India’s digital
2 Can I sell old non-
hallmarked jewellery?
It has been clarified that jewellers
future as much as a fast-shifting
competitive landscape. Other
sectors attracted inflows too,
can continue to buy non- and while some of these invest-
hallmarked jewellery. If it is ment decisions were likely pre-
feasible, jewellers can get the old covid, one can still conclude
jewellery hallmarked as it is, or that the impact of coronavirus
they can purchase such jewellery
on our economy did not deter
and melt it and convert it into new
jewellery and get it hallmarked foreign investors. Whether we
before selling. However, if you are can keep up this allure, though,
selling non-hallmarked jewellery, may depend on how we emerge
you need to be careful. Ideally, you from our current crisis.
should try to sell it to the same
jeweller from whom you have
bought the jewellery. Otherwise,
you should get the caratage of the
jewellery ascertained and then
check with different jewellers for
MINT METRIC
the price they are offering. by Bibek Debroy
MINT
News not yet denied,
3 Are some jewellers
exempted from new rules?
Yes, currently, mandatory hallmarking will
A monkey took a metro ride.
be rolled out in 256 districts of the country
In Delhi, simians a common sight,
which have AHCs. Jewellers with annual On trains too, they have a right,
turnover up to ₹40 lakh do not fall within
the purview of mandatory hallmarking.
But passengers were left goggle eyed.
They can, however, get registration if they
wish to sell hallmarked jewellery. Also,
hallmarking is not mandatory for gold
jewellery weighing less than two grams. QUOTE OF THE DAY
All bull markets cannot be linear,
5 Will new rules impact
loans against gold?
During the pandemic, many people
there have to be corrections.
have availed of gold loans. Lenders
That shouldn’t make one fearful
have been taking non-hallmarked of market as a whole merely
gold as collateral against the gold
loan. This will continue as the
because of small corrections.
Reserve Bank of India (RBI)
regulations do not talk about
mandatory hallmarking of gold
taken as collateral. It says the gold
taken as collateral should be valued RAKESH
at the average of the closing price JHUNJHUNWALA
of 22 carat gold for the preceding PARTNER, RARE
30 days as quoted by the India ENTERPRISES
Bullion and Jewellers Association
Ltd. So, borrowers of gold loans
are unlikely to be impacted.
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 PLAIN FACTS

Regional faultlines may

widen due to pandemic
BY PRAMIT BHATTACHARYA

W
hen covid-19 first struck India last year, the richer parts of the country bore the brunt of the viral attack. Unlike
in the ongoing wave, the rural areas of the country were spared the worst of the pandemic. Hence, mobility levels
and economic activity did not take as big a hit in overwhelmingly rural states such as Bihar and Odisha as they did
in urbanized Gujarat and Maharashtra. This is also reflected in the performance of key indicators across states over the past
year. Economic activity weakened in all states, but relatively poorer states took a less severe hit.
This year could be very different. The pandemic has spread far and wide, with ‘excess death’ numbers from poorer parts
of the country suggesting a much harder hit than what official covid tolls suggest. The only potent antidote to the disease,
vaccines have reached fewer people in the less prosperous parts of the country because of both supply inequities and vaccine
hesitancy.
Richer state economies were closing the gap with other states in terms of mobility and levels of economic activity before
the second wave struck. With a larger share of the population vaccinated, they would likely see faster recovery in the coming
months as mobility levels rise.
This would mean the gap between richer states, largely in the west and the south, and the poorer ones, largely in the east
and the north, is set to widen. The regional gap has been growing over the past two decades, and will likely widen in this fiscal.

Almost all large states saw a sharp decline in economic activity over the past fiscal
yoy% change in fiscal 2021

State GST Credit growth Power consumption Vehicles registered

Maharashtra -11.1 2.5 -2.9 -28.9
Jharkhand -10.4 15.3 -6.3 -22.9
Kerala -9.9 6.7 -4.7 -21.9
Karnataka -9.4 6.6 -5 -29.7
Telangana -8.8 10 -3 NA
Punjab -8.7 8.4 3.9 -41.3
West Bengal -8.6 2.7 -5.2 -21.3
Uttar Pradesh -8.6 11.7 2.4 -33.7
Bihar -8 17 8.1 -33.3
Tamil Nadu -7.3 7.3 -7.8 -23.2
Gujarat -5.9 6.7 -4 -42.6
Madhya Pradesh -4.8 12.6 7.7 NA
Assam -3.9 15.9 7.6 -19.2
Andhra Pradesh -3.7 16.2 -4.2 NA
Rajasthan -3.2 10.3 5 -34.4
Odisha 0.5 7.5 9.7 -33.2
India -8.4 5.6 -0.9 -29.7

India's 16 most populous states shown here Source: GSTN, RBI, POSOCO, Vahan, CMIE, Mint calculations

Resource Crunch Even before the second wave, richer

states were expected to recover faster
PROJECTIONS BY the 15th Finance Commission prior to the FY21 (y-o-y %) FY22-26 (CAGR, %)
State
second wave show that richer state economies were likely to Karnataka -8.8 12.7
experience much faster growth in the next few years compared Andhra Pradesh -0.5 12.6
to poorer states that are hamstrung by low revenues and high
Tamil Nadu -0.5 12.6
debt. The actual growth gap may be higher than what was
Telangana -0.5 12.6
projected, given the impact of the second wave.
Gujarat -11.8 12.4
Governments of poorer states face a double whammy. They
Maharashtra -10.3 10.7
need to spend more to ramp up medical infrastructure and offer
Rajasthan -4.9 10.4
aid to the impoverished, but have fewer resources to tap.
Borrowing costs may also be much higher than last year given Bihar -9 9.7
that higher central borrowing has reduced the appetite for Uttar Pradesh -9 9.7
bonds. Faced with rising inflation, the central bank may no Madhya Pradesh -2.8 9.2
longer be as accommodative in facilitating government Odisha -2.8 9.2
borrowings as it has been thus far. The space for countercyclical West Bengal -2.8 9.2
fiscal policy is, therefore, likely to be limited for states, and the India's 12 most populous states shown here
state budget numbers for fiscal 2022 largely reflect that reality. Source: 15th Finance Commission

Poverty rose sharply in Bihar, Jharkhand

and Odisha in the 2011-17 period
Poverty Gap
Change in poverty GIVEN THE uncertainty surrounding a third wave and the
ratio between possible lockdowns that it could invite once again, the lack of
2011-12 and Poverty rate in %
2017-18 (% pts) (2017-18) generous state aid can mean widespread poverty and
Bihar 16.7 51 malnutrition in some of the most populous parts of the country.
Jharkhand 8.5 46 National Sample Survey (NSS) data suggest that consumption
Odisha 8.1 41 levels in some of the poorest states had declined the most
Assam 5.4 37 between 2011-12 and 2017-18. Overall poverty levels went up by
Maharashtra 4.8 22 1 percentage point, but the rise was much higher in states such
Karnataka 2.3 23 as Bihar, Jharkhand, Odisha, and Assam.
Rajasthan 1.9 17 Data from the latest National Family Health Survey (2019-20)
The poverty ratios were derived from the fractile-wise consumption data
also suggest that rates of stunting among children, an indicator
recorded by the 2017-18 NSS consumption survey, using the of chronic undernourishment, were much higher in poorer
inflation-adjusted state-wise poverty lines for rural and urban areas
reported by the erstwhile Planning Commission in a 2013 note. Only major states. If a large segment of the population in these states were
states which saw a rise in poverty levels shown here. in dire straits before the pandemic, the situation has only
Source: Mint Research, NSS worsened since then, as a number of ground reports suggest.

Demographic Crisis UP, Bihar generate very few factory

jobs relative to their population
BEYOND IMMEDIATE relief measures, poor populous states Figures describe % share in national total
need to create high quality jobs. However, that’s easier said than % share in working-age population (census 2011)
done when they have high debt levels that limit additional public % share in factory jobs (ASI 2017-18)
spending. This means they will struggle to develop the physical Uttar Pradesh
and social infrastructure required to catch up with the rest of the Maharashtra
West Bengal
country. This would impact the flow of private investments and Andhra Pradesh*
regular jobs. States such as Bihar and Uttar Pradesh have been Bihar
Tamil Nadu
able to generate very few industrial jobs relative to the size of their Madhya Pradesh
working age populations so far and this imbalance may only Karnataka
widen in the coming years. Central assistance beyond what the Rajasthan
Gujarat
finance commission mandates can help bridge the resource gap Odisha
between the rich and poor states. However, in a polity where Kerala
Jharkhand
several prosperous states are now governed by opposition parties, Assam
any large redistributive initiative may invite political resistance. Punjab
This is the second of a four-part series on the pandemic’s impact 0 4 8 12 16
on economic inequalities. *including Telangana
Only the most populous states shown here. Source: Census, CMIE, ASI
pramit.b@livemint.com
Nikhil Rampal contributed to this piece. AHMED RAZA KHAN

PEANUTS by Charles M. Schulz

 MUMBAI, NEW DELHI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE*
Tuesday, June 22, 2021
SENSEX 52,574.46 230.01
Centre to tighten
e-commerce rules
Government proposes to limit so-called ‘flash sales’ by e-tailers
Tarush Bhalla
tarush.b@livemint.com
BENGALURU
I
ndia plans to tighten rules for
e-commerce marketplaces,
including Amazon and Flipkart,
following complaints from small
businesses of misuse of market
dominance and deep discounting by
the online retailers.
The rules propose to limit so-called
‘flash sales’ of goods and services by
e-commerce companies, according to
amendments to the Consumer Pro-
tection (E-commerce) Rules, 2020
suggested by the consumer affairs
ministry. Conventional e-commerce
flash sales are not banned. Only spe-
cific flash sales or back-to-back sales
that limit customer choice, increase
prices and prevents a level playing
field are not allowed.
E-commerce firms are also
expected to establish adequate
redressal mechanisms and appoint a
chief compliance officer, according to
the changes in e-commerce rules pro-
posed by the ministry. These compa-
nies will also have to name a resident
grievance officer who has to be a com-
pany employee and a citizen of India
and serve as the nodal point of contact
for law enforcement agencies.
Industry bodies and e-commerce
firms have time until 6 July to submit
livemint.com
NIFTY 15,746.50
TAKING STOCK
LEVELLING THE FIELD
E-TAILERS need to RELATED parties will
appoint grievance and not be allowed to list
compliance officers as sellers on platforms
their comments and suggestions on
the proposed rules.
The proposal comes at a time
when large e-commerce marketpla-
ces such as Flipkart and Amazon
India are being investigated by the
Competition Commission of India
(CCI) for alleged abuse of market
dominance and giving preferential
treatment to sellers in which they
hold indirect stakes.
The CCI probe also focuses on deep-
VOL. 4 NO. 147
63.15 DOLLAR ₹74.11
KEY stakeholders have
till 6 July to give sugges-
tions, comments
discounting practices undertaken by
e-commerce marketplaces, which has
led to complaints from offline retailers.
Earlier this month, the Karnataka
high court dismissed Flipkart and
Amazon India’s plea challenging
CCI’s probe, prompting the firms to
appeal the order at a division bench
of the court for relief.
To tackle growing concerns of
TURN TO PAGE 6
Startup investment craze
goes to small-town India uP10
₹0.25 EURO ₹88.14
Scent of an opportunity
Revenue and profit at the owner of the Fogg brand of
deodorants have been on an uptick. A look at Vini’s profitability
and key shareholders.
Operating metrics (in ₹ crore)
Revenue
1,071
Net profit
887
737
FY18 FY19 FY20
Source: Ministry of corporate affairs filings, Mint Research
KKR in $625 mn
bet in Fogg maker
Swaraj Singh Dhanjal
swaraj.d@livemint.com
MUMBAI
K
KR & Co. agreed to buy a
controlling stake in Vini
Cosmetics, the owner of
the Fogg brand of deodorants,
from the founders and Sequoia
Capital for $625 million, betting
that Indian consumers will con-
tinue to spend big despite the dis-
ruption caused by the pandemic.
The founders, led by brothers
Darshan and Dipam Patel, will
continue to hold a significant
stake in Vini and collaborate
with KKR to drive the com-
pany’s growth, the private
equity firm said in a statement
on Monday. Existing investor
WestBridge Capital will also
acquire an additional stake from
₹0.15 OIL $73.60
Shareholding pattern
(as on 31 March 2020)
Westbridge
Capital
195
FY20 21
142 17.4
(in %)
FY19
115
FY18
Sequoia Darshan and
Dipam Patel
and associates
SARVESH KUMAR SHARMA/MINT
Vini’s founder group to increase
its shareholding.
While the financial details
were not disclosed, a person
aware of the transaction said
KKR will buy around 55% in Vini
Cosmetics, valuing the company
at more than $1.1 billion. The
Patel family owns around 61.68%
of the company, with Sequoia
and WestBridge Capital holding
the rest, according to company
filings with the ministry of cor-
porate affairs.
The transaction reflects the
continued interest of private
equity investors in the Indian
consumption growth story,
industry experts said.
“Despite the pandemic, con-
sumer goods companies and
TURN TO PAGE 6
Rs 6.00 16 PAGES
DHFL FD holders may get
additional ₹966 crore uP7
$0.09 GOLD ₹46,889 ₹233
Record 8.5 mn
vaccinated on
Day One of free
DON’T MISS
covid vaccines
Leroy Leo & Reuters
61.7
leroy.d@livemint.com
NEW DELHI
No other option for businesses
I
ndia administered a record but to go green: Mukesh Ambani
8.5 million doses of covid-19
vaccines on the first day of a
The world has no option but to do business
in a sustainable manner, and Reliance
new phase of vaccination, after Industries Ltd will transform each of its
criticism about the handling of units as its strives to achieve net zero-
the pandemic and the vaccina- carbon emissions by 2035, chairman
tion policy prompted the gov-
ernment to announce free
shots for all adults.
Mukesh Ambani said.
SAT allows PNB Housing to hold
>P6
“Today’s record-breaking
vaccination numbers are glad-
dening. The vaccine remains
our strongest weapon to fight
EGM vote on Carlyle deal
The Securities Appellate Tribunal (SAT) on
Monday gave its nod to PNB Housing
Finance to go ahead with its extraordinary
covid-19,” Prime Minister Nar- general meeting (EGM) scheduled for
endra Modi tweeted on Mon- Tuesday, which will allow it to conduct voting
day. for the ₹4,000 crore deal led by Carlyle. >P9
The previous record was
achieved in early April at 4.3 In diplomatic coup, Beijing takes
million doses, after which an
acute vaccine shortage fol-
the lead in vaccine donations
lowed as production of Covis- The deadly second wave of the pandemic in
India has allowed China to surpass India, the
hield and Covaxin by Serum
Institute of India and Bharat world’s top vaccine producer, in delivering
covid-19 shots worldwide. China has
Biotech International, respec- donated a total of 22.37 million doses across
tively, failed to keep pace with the world in the past six months. >P2
demand.
Still, India needs to adminis-
ter 10 million doses a day to Greenfield FDI may contract for
achieve its aim of inoculating second straight year in 2021
950 million adults by Decem- The value of greenfield foreign direct
ber. So far, India has fully vac- investment (FDI) into India contracted 19%
cinated fewer than 5% with to $24 billion in 2020 and the second wave of
two doses. the pandemic may lead to a larger dip in 2021,
Earlier this month, the gov- UN Conference on Trade and Development
(UNCTAD) said on Monday. >P5
TURN TO PAGE 6
02 TUESDAY, 22 JUNE 2021
MUMBAI ECONOMY & POLICY LIVEMINT.COM

SC asks govt
m MINT SHORTS
Air passenger traffic rises for third
In diplomatic coup, Beijing if NDMA
consecutive week as covid recedes
New Delhi: Air passenger traffic in India rose for the third
straight week as a fall in covid-19 cases and the easing of curbs by
most states led more people to take to the skies. The average
takes lead in vax donations decided on
ex-gratia
number of daily fliers rose to 103,000 for the week ended 19 June,
from 83,000 fliers a week before, brokerage firm ICICI Securities PTI
said in a report. The average number of departures rose to 1,195 feedback@livemint.com
during the week, from 1,003 recorded in the previous week. India’s decision to freeze export of Covishield jabs prompted other countries to turn to China NEW DELHI
RHIK KUNDU

T
he Supreme Court on
Divya Rajagopal Institute appeared as a frontrunner in the Monday asked the Cen-
RBI imposes ₹23 lakh fine on feedback@livemint.com race to develop a coronavirus vaccine, tre whether the National
and stated that they intended to allow Disaster Management Author-
three cooperative banks

T
he deadly second wave of the any manufacturer anywhere the rights to ity (NDMA), headed by the
MINT
pandemic in India has the jab, the global health community Prime Minister Narendra Modi,
allowed China to surpass thought India would do the job of supply- has taken a decision not to pay
India, the world’s top vaccine ing the vaccine to COVAX and develop- ₹4 lakh ex-gratia to families of
producer, in delivering more ing countries. However, Oxford changed covid-19 victims, and observed
covid-19 shots worldwide. course and allowed exclusive licensing of that “to avoid heart burn”
Beijing’s diplomatic win over New Covisheild to just one producer in India,” among beneficiaries, framing
Delhi was helped by a ban on exports of said Leena Menghaney a lawyer with of a uniform compensation
the Oxford University-AstraZeneca MSF India, an independent medical scheme may be considered.
developed and Serum Institute of India humanitarian organization. “Without The Centre, which in its affi-
(SII)-manufactured Covishield vaccine. adequate pressure from the Indian gov- davit said paying ex-gratia
With the second wave turning deadly, ernment for more of its manufacturers to compensation was beyond the
claiming hundreds and thousands of receive the licence and adequate invest- fiscal affordability and the
lives, India decided to freeze exports and ment into its scale-up, the developing finances of central and state
Mumbai: The Reserve Bank of India (RBI ) on Monday instead vaccinate more of its own peo- world quickly ran out of vaccine doses. governments as they were
imposed penalties of ₹23 lakh on three co-operative banks, ple. This prompted several countries to A total of 84 countries, mostly in Africa, Latin America and Eastern Europe, have India’s second wave and the resulting under severe strain, told the top
including Mogaveera Co-operative Bank Limited, Mumbai, turn to China. received vaccine doses so far through bilateral deals by Chinese companies. AFP humanitarian crisis led to the decision to court, however, that it was not
for contravention of various norms. A penalty of ₹12 lakh China has donated a total of 22.37 mil- vaccinate its entire adult population. The the case of the government that
has been imposed on Mogaveera Co-operative Bank Lim- lion doses across the world in the past six several other countries. India have struck contracts with multi- problems of a single company having the “it does not have money”.
ited, ₹10 lakh on Indapur Urban Cooperative Bank, and ₹1 months, showed data from the Covid19 Bharat Biotech, the other vaccine national vaccine manufacturers such as right to produce, and inadequate early “Our case is that we are util-
lakh on The Baramati Sahakari Bank Limited, Baramati. PTI Vaccine Market Dashboard by Unicef. manufacturer from India, is still await- Russia’s Sputnik V and US vaccine com- investments in the scale-up also led to izing the funds available for
Most of these vaccines were delivered by ing emergency approval pany J&J. Sputnik V, the Covaxin shortages in India. The Indian other things rather than utiliz-
the Beijing Institute of Technology, the from the World Health China donated a vaccine backed by the Rus- government could have done much ing funds to build health infra-
SBI gets central board’s approval maker of Sinopharm, and CanSino Bio- Organization, hindering total of 22.37 sian Development Invest- more planning last year. So now, all it is structure, ensure food to all,
logics. A total of 84 countries, mostly in its ability to scale up ment Fund (RDIF), has the going to do is catch up,” she added. vaccinate the entire population
to raise ₹14,000 crore via bonds Africa, Latin America and Eastern exports. The company has
million doses
across the world highest number of manu- In Africa, nearly 37% of the vaccines and provide financial stimulus
New Delhi: The country’s largest lender State Bank of India (SBI) Europe, have received vaccine doses so so far supplied its Covaxin facturing partners from supplied are through bilateral deals by to boost the economy.
in the past six
on Monday said its central board has approved a proposal to raise far from both companies through bilat- vaccine to Nepal and Mau- India. Chinese companies. In comparison, “You (Centre) are right in
up to ₹14,000 crore by issuing Basel-III compliant bonds. The eral deals. In comparison, Pune-based ritius. months, showed Despite India’s manufac- most vaccines supplied by AstraZeneca clarifying because saying that
bonds are proposed to be raised in Indian or US currency. Under SII donated 8.8 million doses to 48 Vaccine manufacturers Unicef data turing prowess in vaccine are through the COVAX facility. While the central government has no
this, the bank plans to raise fresh additional tier I capital up to an countries in the past six months, the in India can produce a production, it is losing SII was committed to delivering up to 50 money has very wide repercus-
amount of ₹14,000 crore subject to the government of India con- Unicef data showed. SII has a contrac- combined 5 billion doses a ground to Chinese compa- million doses to 64 countries under sions,” a special vacation bench
currence, it added. tual obligation with the COVAX alliance year, making it the single-largest manu- nies as the government’s move to ban COVAX by April, Gavi issued a state- of Justices Ashok Bhushan and
co-led by Geneva-based Gavi. The facturing capacity globally. Besides tra- exports and focus on the domestic vacci- ment in March, notifying all these M.R. Shah told solicitor general
COVAX facility is a global initiative for ditional vaccine manufacturers such as nation drive has given space for Chinese nations of the potential delays by SII due Tushar Mehta while reserving
Next-gen tech and services to the equitable distribution of covid-19 SII, Bharat Biotech, Biological E and companies to step in. to India’s decision to open vaccination verdict on two pleas seeking
vaccines. SII also has bilateral deals with Panacea Biotec, several drugmakers in “When Oxford University’s Jenner for all those above the age of 18. ex-gratia compensation.
propel growth, says Delaporte
WIKIMEDIA

Aadhaar validation to expand beyond EPFO India offers $100 mn

Prashant K. Nanda
prashant.n@livemint.com
credit to Eswatini Employer or employee organi-
zations that believe the clause
NEW DELHI cannot be notified in isolation
must read the Act passed by Elizabeth Roche Monday.

T
he Union government Parliament. What we are trying elizabeth.r@livemint.com This brings the total num-
aims to expand the ambit to do is reduce leakage. An EPF NEW DELHI ber of LoCs extended to
of Aadhaar validation subsidy scheme under Atman- Eswatini to four worth $176.58

New Delhi: The IT industry’s growth will be led largely by beyond the Employees’ Provi-
next-gen technologies and services with areas such as data, dent Fund Organisation
cloud and cybersecurity expected to see huge incremental (EPFO) through a clause in the
growth, Wipro chief executive officer Theirry Delaporte new labour code on social secu-
said. Wipro closed several acquisitions in H2FY21 across rity to cover a large part of for-
key markets such as the US and Europe, which has helped mal sector workers.
the company strengthen its local presence and service Matching of the Aadhaar
offerings, he said in the FY21 annual report. PTI details such as name, age and
date of birth, of subscribers
with the records of employees,
Dish TV to raise up to ₹1,000 crore will cover the retirement fund
body, as well as Employees’
through rights issue in tranches State Insurance Corporation
New Delhi: Direct-to-home company Dish TV India Ltd on (ESIC). Authorities believe
Monday said its board has approved raising up to ₹1,000 crore once Aadhaar validation comes
through a rights issue in one or more tranches. This would be into force, payroll fraud such as
“subject to receipt of such corporate, regulatory and other impersonation will be con-
approvals/consents, as may be required under applicable rules, tained as employers cannot
regulations and laws”, the firm said in a regulatory filing. PTI submit statutory EPF and ESI
dues without matching
employees’ records, at least two
Videocon’ s financial creditors to government officials said
requesting anonymity.
get 8% stake in merged entity The move could also reduce
New Delhi : Financial creditors of debt-ridden Videocon Indus- leakage in welfare schemes,
tries will get 8% equity in the entity created by the merger of 11 which are part of the two key
group companies with the firm as per the resolution plan, accord- social security initiatives, such
ing to a public notice. According to the road map of the approved as add-on EPF, maternity, and
resolution plan of Anil Aggarwal’s Twin Star Technologies, listed insurance benefits which are
entities of the group—Videocon Industries Ltd and Values Indus- announced from time to time,
tries Ltd—will be delisted. After this, all 11 group companies one of the two officials said.
would be amalgamated into Videocon Industries Ltd. PTI The government had noti-
I
irbhar Bharat Abhiyan Yojana ndia will help finance con- million, the official said. Previ-
is going on and, if an employer struction of a new parlia- ous credit lines were used to
fudges data, how will you stop ment building in Eswatini in build a software park and for
him or her? It’s possible only southern Africa with the agricultural development.
via Aadhaar linkage and valida- Export-Import Bank of India A total of 211 LoCs totalling
tion of employees’ official (Exim Bank) extending a line $12.85 billion have been
record,” the second official of credit (LoC) of more than extended to African countries
said. $100 million. to support infrastructure pro-
EPFO has around 60 million New Delhi will also finance a jects, according to the Exim
The govt has deferred the mandatory validation of Aadhaar active subscribers and manages new parliament building in Bank. “India’s approach to
details with employee details by three more months. MINT a retirement corpus of nearly Burundi’s national capital development is human-cen-
₹14 trillion. ESIC has 35 million Gitega and some tric and is marked
fied mandatory validation of tion of the formal sector will get insured persons. Overall 133 infrastructure in The latest by respect, diver-
Aadhaar details with employee covered,” said the official. million people, including fam- Bujumbura, the agreement brings sity, care for the
details by 1 June, but this has A section of migrant and gig ily members of ESIC subscrib- country’s largest the total number future and sus-
been extended by three workers may come under the ers avail benefits, such as pri- city and main of LoCs extended tainable develop-
months following ESIC social secu- mary to tertiary care health- port with an LoC ment,” according
to Eswatini to
appeals from Authorities rity net, with the care. Besides, the subscribers of $161.36 million. t o a not e on
employees and cover to be also get death, disability and The line of four worth India’s foreign
believe once
employers’ extended beyond unemployment benefits to its credit agreement $176.58 million ministry website.
Aadhaar
groups. “After this validation comes industrial and subscribers. for the parlia- Unstated is the
time frame, the
into force, payroll municipal work- An ESIC spokesperson said ment of Eswat- subtle distinction
implementation ers, and such a the corporation has not man- ini—a landlocked country with drawn vis-a -vis China whose
will be extended fraud will be validation will be dated the Aadhaar linkage and Mozambique and South Africa infrastructure projects under
beyond EPFO. contained hugely beneficial, validation as yet, but has issued as neighbours and previously the Belt and Road Initiative are
While EPFO cov- the second official instructions to field offices to known as Swaziland—was seen as saddling countries
ers establish- said. ensure employers are on board signed last week between the with debt besides being envi-
ments with 20 or more work- “Section 142 of Social Secu- without coercive measures. general manager of Exim ronmentally unsustainable.
ers, ESIC covers industries hav- rity Code allows the govern- “This linkage once established Bank, Nirmit Ved, and the New Delhi also says the pro-
ing 10 or more workers on their ment to notify such validation will reduce impersonation and finance minister of Eswatini, jects that it takes up for imple-
payroll. Extending the Aadhaar even before the social code is swindling of ESIC benefits,” the Neal H. Rijkenberg, an Indian mentation are those chosen by
validation means a sizable por- implemented in totality. spokesperson said. government official said on African countries themselves.

Modi terms yoga a ‘ray of hope’, ‘source of strength’ in fight against covid CORRECTIONS AND
CLARIFICATIONS
Mint welcomes comments,
Elizabeth Roche covid-19 as tens of thousands group activities, New Delhi faced from a brutal second vostok in Russia, also per- suggestions or complaints
elizabeth.r@livemint.com of people across the world per- had prepared to mark the day wave of infections that claimed formed exercises on the deck about errors.
NEW DELHI formed yoga everywhere—at with all Indian diplomatic mis- thousands of lives in April- of the ship, showed pictures
Readers can alert the
beaches, town squares, neigh- sions organizing pre-Yoga day May, marked the day with a released by the Indian Navy.
newsroom to any errors in the

F
rom Indian security per-
sonnel doing yoga asanas
high up in the Himalayas
to Twitter posting pictures of
Marilyn Monroe doing a head-
stand and Indian missions
across the world hosting
events, celebrations were in
full swing on the International
Day of Yoga on Monday.
In his remarks on the occa-
sion of the 7th International
Day of Yoga, Prime Minister
Narendra Modi termed yoga as
a “ray of hope” and a “source of
strength” in the fight against
bourhood parks as well as in
the isolation of their homes.
Joining in the events were
prominent leaders of neigh-
bouring countries, including
Sri Lankan Prime Minister
Mahinda Rajapaksa and his
wife Shiranthi Rajapaksa.
“Yoga can play a significant
role in promoting both physi-
cal and mental well-being,
especially for those facing
social isolation and emotional
distress as a result of the (cov-
id-19) pandemic,” said a post
from the UN’s Twitter handle.
events.
Prime Minister Modi had
written to heads of states and
governments of many coun-
tries to ensure that the Inter-
national Day of Yoga was
marked with celebration this
year. “From Japan to Niger to
Prime Minister Narendra Modi said yoga has become a great Spain to the US! Indian Mis-
source of inner strength during the ongoing pandemic. PTI sions across the globe cele-
brate the 7th #International-
Due to the pandemic and last year. This year, however, DayOfYoga,” said a Twitter
the shutdowns imposed by dif- with many countries vaccinat- post from Indian foreign min-
ferent countries across the ing their populations and istry spokesman Arindam Bag-
world, the International Day of slowly opening up to travel chi.
Yoga could not be celebrated and lifting restrictions on India, which has just sur-
number of events.
“Indian Navy personnel on
mission deployed warships in
the true spirit of #YogaDay
#YogaforWellness carry out
Yoga on the high seas across
the Indian Ocean region and
beyond,” said a post from the
Indian Navy with pictures of
personnel performing asanas
on the deck of INS Airavat
deployed in Vietnam’s Cam-
ranh Bay.
Personnel aboard the
Indian warship Kiltan,
deployed off the coast of Vladi-
In the Himalayas, members
of the paramilitary Indo-Ti-
betan Border Police per-
formed yoga in Ladakh along
the banks of Pangong Tso lake,
showed pictures on Twitter.
“When the unseen corona-
virus knocked on the doors of
the world, no country was pre-
pared for it in terms of resour-
ces, capability and mental
toughness. We all have seen
that in such difficult times,
yoga has become a great
source of inner strength,”
Modi said.
paper by emailing us, with your
full name and address to
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respond to all complaints.
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Mint’s journalistic integrity may
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First published in February 2007 to serve as an unbiased and clear-minded chronicler of the Indian Dream.

SRUTHIJITH KURUPICHANKANDY (EDITOR); PUBLISHED/PRINTED BY DINESH MITTAL ON BEHALF OF HT MEDIA LTD, 9th Floor, Tower 3, Indiabulls Finance Centre, Senapati Bapat Marg, Elphinstone Road (West), Mumbai-400013
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LIVEMINT.COM DEALS, TECH & STARTUPS TUESDAY, 22 JUNE 2021
MUMBAI 03

m MINT SHORTS
Fitness startup Portl raises seed
Progcap gets funds from
funding from Kalaari Capital
Bengaluru: Home fitness and wellness startup Portl on Monday
said it has raised a seed round of funding from Kalaari Capital. It
didn’t disclose funding details. The funds raised will be utilized
Tiger Global, Sequoia
to grow the team across hardware, engineering and artificial
intelligence (AI) domains and expand the sales and marketing
efforts for the Portl range of products in India. Portl has devel-
oped two products —Portl Mirror and the Portl Pro—which pro- The fintech firm raised $25 million as part of Series B investment round
vide personalized workouts, nutrition and mental wellness pro-
grammes. STAFF WRITER
Madhurima Nandy
madhurima.n@livemint.com
Hyundai completes Boston BENGALURU

Dynamics buy from SoftBank

MINT
Tokyo: SoftBank Group Corp. said on Monday that South
Korea’s Hyundai Motor Group had completed the acquisi-
tion of robotics firm Boston Dynamics from the Japanese
conglomerate. The deal, which was announced last Decem-
ber and valued the maker of the “Spot” robot at $1.1 billion
(about ₹8,162 crore), gives Hyundai an 80% stake with Soft-
Bank retaining the remaining 20%. REUTERS
Yellow Messenger is now yellow.ai,
launches AI-powered voice bots
New Delhi: Yellow Messenger on Monday said it has rebranded
F
intech startup Progcap on Mon-
day said it has raised $25 million
as part of its Series B investment
round led by Tiger Global and
existing investor Sequoia Capital
India. The New Delhi-based startup offers
last-mile retailer financing solutions.
The funds will be deployed to enhance
its services and presence across existing
geographies. The firm will also use the
capital to scale up the team, strengthen
technology differentiation, and diversify
into new product offerings to fortify its
vision of building a full-stack digital plat-
form for last-mile retailers.
Progcap had raised around $1.4 million
in debt financing led by Stride Ventures in
February 2021. In 2019, it raised $5 million
in a Series A round.
HCL forms new Asia
Progcap, which was founded by Pallavi
Shrivastava and Himanshu Chandra, says
it now reaches 300,000 retailers and has
leadership team
disbursed ₹1,500 crore of loans on its
product for multi-tiered supply chains. Ayushman Baruah Asia is categorized under
The company, which works at the inter- Progcap founders Pallavi Shrivastava and Himanshu Chandra. The startup has ayushman.b@livemint.com ‘Rest of World’ geography
section of software and financial services, disbursed ₹1,500 crore of loans on its product for multi-tiered supply chains. BENGALURU which contributed 8.4% to
said it aims to be the first full-stack retail- HCL’s total revenue in FY21,

H
itself as Yellow.ai and launched voice AI bots to expand its prod- er-focused digital bank that enables capi- excited to strengthen the partnership with invested in multiple existing Seqouia- CL Technologies Ltd, growing 13.6% over FY20.
uct suite aimed at delivering total customer experience automa- tal flow across the supply chain to under- this financing,” said Ashish Agrawal, prin- backed startups in the country this year, India’s third-largest “HCL has actively expanded
tion. The company has seen significant growth in revenues and served retailers. Progcap aims to impact cipal, Sequoia India. including jobs platform Apna ($70 mil- software services firm its global footprint with its
booked $16 million in ARR (annual recurring revenue), Raghu more than 5 million enterprises by the end “The Progcap team helps small and lion), community platform Kutumb ($26 by revenue, has created a new next-generation services and
Ravinutala, co-founder and chief executive officer of Yellow.ai, of 2023. million) and online invest- leadership team to drive products. South Korea is the
told PTI. PTI “Progcap has built a unique FUNDRAISING SPREE ment platform Groww ($83 growth in some key markets in highest rated country for inno-
product to cater to the work- million) among others. Asia. vation and leads in new digital
ing capital needs of small PROGCAP raised IN 2019, the startup, THE fintech startup “We are excited to have HCL has appointed Joonho technologies such as 5G and
Agritech startup Superplum raises Indian retailers who serve around $1.4 mn in which offers retailer
debt financing led by financing solutions,
aims to impact more
than 5 million
Sequoia Capital India double Moon, Terry Tai and Nguyen internet of things (IoT). Taiwan
much of India’s $800 billion Stride Ventures in down on Progcap and thrilled Ha Tuan as country sales heads is the nerve centre of the global
$ 3.8 million in fresh funding round retail market. As supply February 2021
raised $5 mn in a
Series A round
enterprises by the
end of 2023 to have Tiger Global join us in for South Korea, Taiwan and semiconductor industry, which
New Delhi: Agritech startup Superplum has raised $3.8 million chains in India get formalized our journey. The continued Vietnam, respectively, accord- is expected to exponentially
(about ₹28 crore) in a fresh round of funding for capacity building with goods and services tax, faith that our customers, part- ing to a company statement. grow in the coming decade.
and expanding its operation. According to a company statement, the company will play an important role in mid-size businesses get access to financ- ners, and investors have put in us is a testa- HCL will use its engineering, Vietnam is one of the fastest
it has completed its pre-series A investment round of $3.8 mil- serving the financial needs of such retail- ing. We believe Progcap has an exciting ment to our teams’ unrelenting efforts. and research and development growing digital economies and
lion. Founded in 2019, Superplum has raised $6.8 million since ers. Since Sequoia Capital India’s Series A path ahead as they continue to innovate in We are committed to continue our efforts (R&D) services to enter these is transforming its society to
its inception.“The fresh capital is being used to build out farm investment, Progcap has scaled up the this underserved market,” said Scott in building India’s largest digital banking markets and it will be led by leapfrog into a knowledge
infrastructure, augment the management team and expand the business with exceptional credit quality Shleifer, partner, Tiger Global. platform for last mile retailers,” Progcap’s Sanjay Gupta, corporate vice economy,” said C. Vijaya-
company distribution capabilities,” the company stated. PTI and high capital efficiency and the team is New York-based Tiger Global has founders said. president. kumar, HCL’s CEO.

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MUMBAI MARK TO MARKET LIVEMINT.COM

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

52,574.46 0.44 15,746.50 0.40 13,456.10 0.52 38,648.95 0.87 15,991.25 0.48 22,420.06 0.82 24,854.25 0.83
PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN

52,344.45 51,887.55 15,683.35 15,525.85 13,386.55 13,240.90 38,315.15 37,872.85 15,915.55 15,751.35 22,238.21 22,012.09 24,648.83 24,387.47
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m MINT SHORTS
US dollar faces volatile week as
As Sebi steps in, it is high time PNB
policymakers line up to speak
The dollar faces a week of volatile trade as a slew of Federal
Reserve speakers and US inflation data test investors try-
ing to gauge the pace of monetary tightening. St. Louis Fed
board clarifies its pact with Carlyle
president James Bullard, Dallas Fed president Robert Mobis Philipose to issue preferential shares to a handful
which will bring its stake in PNB Hous-
Kaplan and New York Fed president John Williams will mobis.p@livemint.com of investment firms, which will give ing down from around 33% to a little
Cost of control
speak on Monday before chairman Jerome Powell testifies control to Carlyle Group. over 20%. It has also agreed to tweak an In the past 10 years, acquirers have paid roughly 28% more than prevailing

A
to Congress on Tuesday. Friday will feature a reading on bout 20 years ago, Maruti The main quibble is that while the agreement that allows the use of the prices for control in banking and financial services firms.
the central bank’s favoured inflation gauge, while in Suzuki India Ltd’s plan to allotment price is in keeping with PNB brand by the housing finance firm Average control premium Mean Data for Nov 2011-Jun 2020 (in %)
between, other regional Fed chiefs discuss the economy raise capital through a Securities and Exchange Board of Indiaas long as its stake is above 20%—this 40
35 35
and monetary policy. The JPMorgan Global FX Volatility rights issue had to be (Sebi) rules, it does not factor in any
threshold was earlier at 26%.
28
Index has climbed sharply since the Fed projections last stalled, because the gov- premium for the control being gained. All of this is odd. PNB stands to lose 30 26 22
week showed more than one rate hike in 2023. In an indi- ernment of India wasn’t willing to SES’s suggestion is for the firm to opt
the most by not demanding a control
20
cation of what may be to come this week, two-year Trea- budge on its demand for a ‘control pre- for a rights issue instead. This will ena-
premium, although this doesn’t seem
18 19
sury yields and the greenback jumped on Friday after Bul- mium’. The government had planned ble both minority shareholders and to bother it at all. 17
10 13
lard said it may be appropriate for the central bank to start to renounce its rights and sell them PNB to acquire shares at the same The bank hasn’t put the transaction
raising interest rates next year. BLOOMBERG instead to some financial to a shareholder vote, 0
institutions. This, in turn, NO COMPLAINTS, NO DEMANDS and a perusal of its stock Auto Chemicals Healthcare Infrastructure
would reduce its stake exchange announce- Banking/
financial services
Consumer/
retail
Industrial Technology

and give control of the PNB stands to lose THE market has THERE needs to be ments shows it hasn’t for-
Edging higher firm to the joint venture the most by ceding prescribed a high an independent mally communicated to
Note: Premium is calculated as the difference between open offer price and volume-weighted average
control to Carlyle value to the aspect of valuation exercise to price of the company's shares 60 days preceding the public announcement of the offer
Oil inches up after posting its fourth weekly advance. partner, Suzuki Motor but the lender seems PNB ceding control its shareholders why it is
determine a fair Source: Incwert Advisory, Sebi
WTI futures ($ a barrel) Corp. to be unfazed at PNB Housing control premium letting Carlyle get into
80
The deal eventually the driver’s seat at PNB SATISH KUMAR/MINT
71.9 went through in May Housing at just the pre- two out of the 53 instances where open the deal. Sebi has now added weight to
70
2002 after the Japanese firm shelled price, or sell their rights at a market-de- vailing share price. offers were made in the sector. In three the warnings of SES by asking the
out ₹1,000 crore as control premium. termined price. Incwert Advisory Pvt. Ltd, an inde- cases, the control premium paid was housing finance firm to commission an
60 In sharp contrast, Punjab National It’s impossible for minority share- pendent valuation services firm, points over 100%. independent valuation report.
Bank (PNB) is letting go of control at holders to stall the preferential issue out in a report that acquirers paid on The huge jump in PNB Housing’s Shareholders of PNB and its over-
50 PNB Housing Finance Ltd with no talk and demand a rights issue. Even if Car- average a 28% premium to acquire con- share price this month shows that the seer, the government of India, need to
39.4 whatsoever of any control premium. lyle and other investors participating in trol over banking and financial services market has prescribed high value to the ensure that the lender also commis-
40 Stakeholders Empowerment Servi- the issue were barred from the vote, firms between November 2011 and aspect of PNB ceding control to Car- sions an independent valuation exer-
ces (SES), a proxy advisory firm, has just PNB’s vote would see the resolu- June 2020. lyle. It’s only fair that PNB shows it has cise that determines a fair control pre-
30 advised shareholders of the housing tion through. The state lender is not While averages can mean anything, taken the best efforts to ensure that its mium. If Suzuki could budge, so can
12 Oct 2020 21 Jun 2021 finance firm to vote against a proposal being allotted shares in the issue, the control premium was nil only in shareholders have got the best terms in Carlyle.
Source: Bloomberg
SATISH KUMAR/MINT

Oil near $72 as Iran nuclear

talks end without agreement
NTPC’s Q4 powers stock, but Info Edge’s March quarter results
Oil climbed near $72 a barrel after the latest talks between
world powers and Iran to revive a nuclear deal ended with-
out an agreement, a day after the Opec producer elected
renewable plans remain key don’t move the needle for its stock
a new president. Futures in New York rose 0.5% after
increasing for a fourth week. Diplomats adjourned a sixth Pallavi Pengonda Pallavi Pengonda Ltd, said: “Info Edge’s recovery in Ebitda stood at ₹53 crore, repre-
Charged up
round of meetings with significant gaps remaining to pallavi.p@livemint.com pallavi.p@livemint.com the March quarter has been a senting a decline of 45% com-
mend the accord, the third time since talks began in April Higher capacities helped NTPC’s performance in the financial fairly V-shaped one. This is evi- pared to the same period last
year 2021.

S S
that negotiators have missed self-imposed deadlines to hares of NTPC Ltd rose hares of Info Edge (India) dent in the fact that the com- year. Higher-than-expected
NTPC’s consolidated capacity including joint ventures (in megawatts)
rejuvenate the pact. A revived deal would likely lead to the nearly 4% on Monday Ltd have declined by pany’s recruitment billings in the employee expenses are one rea-
easing of US sanctions and higher crude flows. The elec- on the National Stock Installed capacity Commercial capacity around 10% from their March quarter are considerably son for the disappointment.
tion of conservative cleric Ebrahim Raisi as Iran’s presi- Exchange. Not without rea- 70,000 highs early this year on the higher than the March 2019 “Losses in 99 Acres & other
dent, however, may complicate future talks. Raisi is subject son. The company’s March 60,000 National Stock Exchange. Some quarter (Q4FY19), which was a vertical and lower profitability in
to US sanctions and Tehran insists they must be removed quarter results (Q4FY21) 50,000 of this correction can be attrib- pre-pandemic quar- recruitment busi-
as part of an agreement to revive the pact. BLOOMBERG announced on Saturday are 40,000 uted to the fact that Info Edge’s ter.” Note that the Info Edge’s Q4 ness led to Ebitda
strong, helped by the recov- 30,000
shares had run up substantially. recruitment solu- revenue declined margins declining
ery in power demand and The stock was marginally tions billings in 10% y-o-y to ₹290 from 29.9% in
China tightens its grip on coal higher other income.
20,000
10,000
down on Monday in reaction to Q 4 F Y 2 1 have crore, although Q4FY20 to 18.3% in
In fact, NTPC’s results its March quarter results increased by around Q4FY21,” said ICICI
market amid increasing prices stand out, point out analysts. 0
(Q4FY21). While results are 1 5 % vis-à-vis
they are up by
Securities Ltd’s ana-
Chinese regulators shut more coal mines amid rising con- “NTPC reported its best ever
Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21
slightly below expectations, the Q4FY19. This also 6.5% versus the lysts in their first cut
Source: Company, Dolat Capital Market Pvt. Ltd
cern over industrial accidents as prices continue to rise for quarterly performance in billing numbers have been indicates that the previous quarter email note.
the fuel that provides half the country’s energy. Hubei has 4QFY21 with 13% year-on- SATISH KUMAR/MINT
encouraging, point out analysts. second covid-19 Overall, Info
halted all coal mining operations from 15 June to 5 July year growth in adjusted profit This is encouraging given that with other CPSEs such as Coal The company’s total billings wave has not had an Edge’s March quar-
after a gas pipeline explosion in the province killed 25 peo- after tax (PAT) to ₹3,830 crore it could help the company India Ltd, for instance,” last quarter have increased by adverse impact on the company’s ter revenue declined by 10% year-
ple on 13 June, according to a statement from the local gov- leading to an all-time high improve its ESG (environ- pointed out a report by 25% year-on-year. The recruit- recruitment business. on-year to ₹290 crore, although
ernment on Saturday. It follows Anyuan Coal Industry adjusted PAT of ₹14,220 crore mental, social and govern- Antique Stock Broking Ltd on ment solutions business, which On the other hand, Info Edge’s they are up 6.5% versus the
Group Co. on Friday halting five mines in Jiangxi province (+17% year-on-year) in ance) scores. NTPC’s higher 21 June. CPSEs is short for forms a major chunk for Info performance at the earnings December quarter. Even so, reve-
from 21 June to 4 July. The mine shutdowns follow a spate FY2021,” said analysts from exposure to coal-based capac- central public sector enter- Edge, has done well, reporting a before interest, tax, depreciation nue performance isn’t particu-
of deadly accidents and coincide with nationwide celebra- Kotak Institutional Equities. ities has been a key issue on prises. 22% increase in its billings. and amortization (Ebitda) level larly encouraging.
tions of the 100th anniversary of the founding of the Chi- Further, as on March 2021, ESG metrics, said analysts. As such, the road ahead is As Vivekanand Subbaraman, for the March quarter is a bit dis- “We believe the company’s
nese Communist Party, which begin 1 July. The halts are total receivables Further, it would not a smooth one. As Kotak an analyst at Ambit Capital Pvt. appointing. The company’s performance will improve in the
suppressing domestic output even as strong industrial stood at ₹12,800 NTPC has set an a l s o a d d t o analysts point out, “While coming quarters led by improved
activity and high temperatures boost demand. “This year’s crore, lower than ambitious target NTPC’s earnings lower cost of borrowing hiring in IT sector,” said ICICI
peak summer season may be the most difficult year in his- ₹14,200 crore as growth in future weighs in favour of NTPC,
Strong recovery Securities analysts.
of increasing its Info Edge’s recruitment solutions billing has been robust in Q4.
tory to maintain supply,” Fengkuang Coal Logistics said in on March 2020. operational and help diversify increased competition in the Hereon, investors would do
a research note on Monday. It is also inter-
BLOOMBERG
renewable energy i t s r e v e n u e renewable space pushing well to track news flow on the list-
Recruitment solutions billing (in ₹ crore)
esting that NTPC streams. solar bids to an all-time low 350 ing of food delivery firm and
has given an capacity to 60GW Even so, inves- keeps us watchful of the 297.9 investee company, Zomato Ltd.
ambitious target by 2032 tors would do return profile of upcoming 280 259.8
“Moving ahead, one concern
Upside down on the renewable well to watch the capacity addition.” investors would have is how Info
210
US 30-year yield slides below 2% as Fed rate hike bets energy (RE) return profile of Meanwhile, NTPC has Edge will utilize its around
dampen inflation expectations. capacity additions front. the RE capacities. “The com- declared a final dividend of ₹3,600 crore of cash on the
140
Treasury 30-year US 10-year break-even By 2032, NTPC is looking pany reiterates that the com- ₹3.15 per share, taking the books. Secondly, Zomato’s valua-
bond yield inflation rate (in %) to increase its 1.3GW (giga- petitive edge in RE space total dividend for FY21 to 70 tions during its IPO need to be
3
watt) of FY21 operational comes at a lower borrowing ₹6.15 apiece. “With improv- monitored. Additionally, future
2.2 renewable energy capacity to cost. At about 6.5% borrowing ing regulated equity, there is 0
Q4FY19 Q4FY21
M&As and deals are other devel-
2.5 60GW, which is higher than cost, the equity IRR for solar a case for a 5%+ dividend opments that need to be
Source: Company
the 30GW planned earlier. arm will compete strongly yield,” said Antique. tracked,” said Subbaraman.
SATISH KUMAR/MINT
2
2.0
1.5
1.5

1
1.3
22 Jun 2020 21 Jun 2021
Ceat eyes top spot, but stiff competition makes for a tough ride
Source: Bloomberg
Harsha Jethmalani month to 200,000 tyres per However, it has assured inves- prices of natural and synthetic
SATISH KUMAR/MINT
Aiming high
harsha.j@livemint.com month by FY25. tors of maintaining debt well rubber are a threat to the com-
Ceat is focusing aggressively on adding capacity across
Besides, the company will under the limit of less than one pany’s margin. Ceat’s manage-
US treasury yields lose steam as segments in FY22 and FY23.

T
yre-maker Ceat Ltd has
investors reconsider reflation laid out a five-year
The pressure on long bond yields is going global, led by growth plan with three
Treasuries and UK gilts, as investors reconsider reflation key targets. It is eying leader-
expectations and brace for an eventual pullback of central ship spot in the two- and three-
bank stimulus. Treasury 30-year yields traded little wheeler, and passenger car
changed at 2.02% at 9.47 am in London, after earlier falling radial (PCR) segments. Two, it
below 2% for the first time since February. Their UK coun- is looking to be among the top
terparts hit a similar milestone, dropping below 1.2%. The three players in the truck and
five-to 30-year yield spread in both markets, which reflects bus radial (TBR) segment. It
the balance between the interest-rate outlook and infla- also aims to triple its growth in
tion expectations, narrowed to the smallest gap since at international business.
least December. Traders are adjusting positions as they At its recently held investor
scale back on reflation trades in the wake of the Federal meeting, the management said
Reserve’s hawkish pivot last week, which fuelled a scram- it aspires to improve its market
ble to unwind curve steepeners. The likes of Morgan Stan- share in TBR segment from the
ley and TD Securities were stopped out of recommended existing 7% to 10-15%. So, Ceat
trades, while Goldman Sachs analysts unwound outright plans to double its TBR capac-
30-year short positions. BLOOMBERG ity from 100,000 tyres per
also be investing heavily in
research and development.
Analysts said the company’s
market share target is aggres-
sive and fraught with downside
risks. “We believe market share
gains would be tough given
high competitive intensity,
with MRF yet to invest aggres-
sively. TBR leaders like Apollo
and JK fail to make a desirable
RoCE on TBR projects; smaller
players like Ceat would find it
tougher,” said analysts from
Ambit Capital Pvt. Ltd in a
report. RoCE is return on capi-
tal employed. In the PCR seg-
ment, Ceat has a market share
of around 11% and aspires to be
time equity and less than three ment expects raw material pri-
Passenger car radial
4,500,000
2-3 wheeler Truck and bus radial* Tyres/month
times Ebitda. Ebitda is short for ces to rise by 8-10% sequen-
earnings before interest, tax, tially in the June quarter of
3,600,000 depreciation and amortization. FY22. The company’s manage-
2,700,000 However, analysts are hardly ment has tried to offset input
1,800,000 convinced. Changing business cost pressure by taking partial
900,000 mix towards PCR and TBR, and hikes. But analysts said the cur-
high capex spend will lead to rent quantum of price
0
FY21 (Actual) FY22 (Estimates) FY23 (Estimates) high net debt and keep ROEs increases is not adequate to
*A further addition of 54,000 tyres/month is expected post FY23. subdued at 11-12%, Nomura contain the margin compres-
Note: Figures for FY22 and FY23 are Source: Company’s Financial Advisory and Securi- sion, unless volumes improve
based on capacity projections at the end of each fiscal investor presentation
ties (India) Pvt. Ltd analysts significantly, which is unlikely
SATISH KUMAR/MINT
said in a report. ROE is short for in the near term.
among the leaders such as ₹1,000-1,200 crore and ₹800- return on equity. Analysts at Ambit estimated
MRF, Bridgestone and Apollo, 1,000 crore for FY22 and FY23, It should be noted that the that high operating expenses,
which have around 20% plus, respectively, the management company’s high capex growth along with an elevated capex,
which is tough, they said. said. Due to a weak Q1 and plan comes in the backdrop of would translate into negative
On a consolidated basis, capex plans, the management severe raw material inflation free cash flow of around ₹460
Ceat’s capex guidance stands at expects debt to rise in FY22. concerns. Steep increase in the crore in FY22.

Mark to Market writers do not have positions in the companies they have discussed here
LIVEMINT.COM CORPORATE TUESDAY, 22 JUNE 2021
MUMBAI 05

Upside AI
Greenfield FDI may contract Weak demand, cost
raises seed management major
round worth
$1.2 million
for 2nd straight year: UNCTAD hurdles for biz: Ficci
Abhinav Kaul Gireesh Chandra Prasad
abhinav.kaul@livemint.com gireesh.p@livemint.com
NEW DELHI Value of greenfield FDI into India, which shrank 19% to $24 bn in 2020, may dip further in 2021 NEW DELHI

T W
ech-based investment ISTOCK eak demand and
management firm, Asit Ranjan Mishra managing costs are
Upside AI, has raised a asit.m@livemint.com Among favourite destinations the biggest challen-
seed round of $1.2 million led NEW DELHI Overall FDI inflows into India grew 27% to $64 billion in 2020, pushed up by ges businesses are facing while
by venture capital fund Endiya acquisitions in the ICT industry, making it the fifth-largest recipient in the world. states are lifting mobility

Partners. Other investors in the
round included Vijay Kedia,
veteran stock market investor;
Ajay Nanavati, chairman of
Quantum Advisors and previ-
ously chairman of Syndicate
Bank and managing director of
3M; and Gopichand Katra-
gadda, chief executive of Mye-
lin Foundry and ex-CTO of
Tata Group.
Mumbai-based Upside AI is a
Securities and Exchange Board
of India (Sebi)-registered port-
folio management service
(PMS) and uses a combination
of investing and machine learn-
ing to invest in companies in
the Indian stock market.
The firm will use the invest-
ment to scale up distribution,
product, and tech teams that
will focus on growing assets
under management (AUM)
from high-net-worth individu-
als (HNIs), family offices and
institutional investors.
The startup was founded in
December 2017 by Kanika
Agarrwal, Nikhil Hooda and
Atanuu Agarrwal.
According to the PMS, it has
delivered 71% cumulative
returns since July 2019 and the
AUM has grown by 10 times
over the last year to over ₹55
crore with funds from several
HNIs and family offices.
Upside AI is building prod-
ucts that follow a rules-based,
systematic approach to invest-
ing. The startup’s first few
products focus on equity
investing using proprietary
machine learning algorithms.
T
he value of greenfield for- Rank restrictions, according to a
Top 5 economies by FDI inflows (in $ billion)
eign direct investment (FDI) 2019 2020 nationwide survey.
into India contracted 19% to 2019 261 Liquidity and manpower
1 1 US 2020
$24 billion in 2020 and the 156 availability are the other key
second wave of the pan- 141 challenges, according to the
demic may lead to a larger dip in 2021, 2 2 China
149 survey in the first week of June Manpower availability is also a
UN Conference on Trade and Develop- of 212 businesses across the key challenge for businesses,
ment (UNCTAD) said on Monday. 74 country by industry body Fed- the survey said. BLOOMBERG
5 3 Hong Kong
However, overall FDI inflows into 119 eration of Indian Chambers of
India, including through mergers and Commerce and Industry of the second wave of the pan-
114
acquisitions, increased 27% to $64 bil- 3 4 Singapore (Ficci). High raw material pri- demic, businesses witnessed a
lion in 2020, pushed up by acquisitions 91 ces and unavailability of indus- dip in demand.
in the information and communication 8 5 51 trial oxygen are also major hur- This time it was not just
technology (ICT) industry, making it India dles in the current environ- demand in urban areas that was
64
the fifth-largest recipient in the world, Source: UNCTAD ment, the survey showed. impacted. Even the rural areas
the UNCTAD World Investment Only 38% of the surveyed saw a compression in demand
Report said. businesses are using more than with 37% of the companies
“The second wave of the covid-19 tardy pace of vaccination. India has been on a long-term growth “Large transactions included the 70% of capacity, while 40% are reporting high impact on their
outbreak in India weighs heavily on the The Indian economy contracted trend and its market size will continue acquisition of Jio Platforms by Jaadhu, using less than half of their sales in rural markets. The
country’s overall economic activities. 7.3% in FY21 for the first time in more to attract market-seeking investments. a subsidiary of Facebook (US) for $5.7 capacity now. However, there weak demand situation
Announced greenfield projects in India than 40 years because of the first wave In addition, investment into the ICT billion, the acquisition of Tower Infra- is a silver lining. As much as impacted capacity utilization
contracted by 19% to $24 billion and the of the coronavirus pandemic. The sec- industry is expected to keep growing. structure Trust by Brookfield (Canada) 63% expect more than 70% with 40% of the companies
second wave in April 2021 is affecting ond wave has had a less severe impact Export-related manufacturing, a prior- and GIC (Singapore) for $3.7 billion, capacity utilisation in the next experiencing utilization rates
economic activities, which could lead on the economy, but is expected to ity investment sector, will take longer and the sale of the electrical and auto- 6-12 months, the survey of less than 50% of their
to a larger contraction in 2021. The out- decelerate the growth momentum. to recover, but government facilitation mation division of Larsen & Toubro showed. installed capacity.
break severely hit main investment A majority of analysts have slashed can help. The country’s production- India for $2.1 billion. Another mega- The second wave of the cov- Besides, to help employees,
destinations” such as Maharashtra, deal, Unilever India’s merger with id-19 pandemic that hit the 49% of the companies surveyed
home to one of the biggest automo- STRONG INFLOWS GlaxoSmithKline Consumer country during April-May 2021 reimbursed covid related med-
tive manufacturing clusters of Healthcare India (a subsidiary of was extremely intense and ical expenses or gave wellness
Mumbai–Pune–Nasik–Auranga- OVERALL FDI AMID India’s struggle OUTFLOW of FDI PLI scheme can GSK, UK) for $4.6 billion, also con- impacted the functioning of allowance while 47% granted
bad, and Karnataka, home to the inflows grew 27% to
$64 bn in 2020, said
to contain the covid- from South Asia fell
19 pandemic, cross- 12% to $12 bn, driven
drive a rebound of
investment in
tributed,” UNCTAD said. businesses, which had just leave for family care or extra
Bengaluru tech hub, which faced UNCTAD World border M&As surged by a fall in investment manufacturing, said Outflow of FDI from South Asia started moving towards nor- paid leave. This has added to
another lockdown from April 2021, Investment Report 83% to $27 bn from India the report fell 12% to $12 billion, driven by a malcy after the end of the first the costs, these companies
exposing the country to production drop in investment from India, wave, Ficci said. have incurred.
disruption and investment delays, UNCTAD said. The survey showed that 58% “With the number of new
the report said. their growth forecast for FY22 to less linked incentive scheme, designed to “These outflows remained small, of the companies saw high cases ebbing and states getting
The global economy is expected to than 10%, expecting most of the direct attract manufacturing and export-ori- representing less than 2% of global out- impact on their businesses into the unlock mode, there is
overcome the debilitating effect of the impact of the second wave to be ented investments in priority indus- flows. Companies in India are South because of the state-level hope that business and eco-
pandemic in 2021, with developed absorbed in the June quarter. tries, can drive a rebound of investment Asia’s largest investors, with more than regional lockdowns. Another nomic activities would regain
economies such as the US, UK, and the However, cautious consumer senti- in manufacturing,” it said. 90% of outflows in 2020. Investments 38% reported moderate impact normalcy in the months ahead.
European Union (EU) expected to ment and sluggish rural demand are Amid India’s struggle to contain the from India are expected to stabilize in on operations. Even as we see signs of
record healthy growth benefiting from expected to hamper overall growth in covid-19 outbreak, cross-border 2021, supported by the country’s With different parts of the improvement, we must pre-
their rapid vaccination drives. How- FY22. merger and acquisitions surged 83% to resumption of free trade agreement country under different sets of pare ourselves well for the sub-
ever, India is expected to be a laggard, India’s strong fundamentals provide $27 billion, with major deals involving talks with the EU and its strong invest- restrictions and consumer sen- sequent waves,” Ficci’s presi-
because of the second wave and the optimism for the medium term. “FDI to ICT, health, infrastructure and energy. ment in Africa,” it said. timent impacted by the ferocity dent Uday Shankar said.

US solar firm plans $300 mn investment in India Maintaining cloud security is a

Utpal Bhaskar
utpal.b@livemint.com
shared responsibility, say experts The ₹4,500 crore PLI has gained traction with 15
scheme is part of domestic companies considering total
NEW DELHI content requirement strategy investments of around $3 bil-
and is expected to help India lion to build solar equipment Staff Writer

B
ill Gates’ Breakthrough add 10GW of integrated solar manufacturing facilities here feedback@livemint.com
Energy Ventures- photo voltaic (PV) manufac- as reported by Mint earlier.

backed 1366 Technolo-
gies plans to invest $300 mil-
lion to set up a 2-gigawatt
(GW) solar wafer and cell man-
ufacturing facility in India
under the government’s pro-
duction-linked incentive (PLI)
scheme, said chief executive
and founder Frank van Mierlo.
The US-based firm is in talks
for an Indian partner, who will
handle the module manufac-
turing part of the production
chain and use the equipment
to set up solar parks in India.
In a telephone interview,
van Mierlo declined to name
the Indian firms he is in talks
with, citing non-disclosure
agreements.
Apart from Breakthrough
Energy Ventures as its largest
investor, 1366 Technologies
also has North Bridge Venture
Partners and Polaris Partners
At present, India has a domestic manufacturing capacity of only
3GW for solar cells and 15GW for solar modules.
as investors. A total invest-
ment of $200 million has been
made in the firm through a mix
of equity and non-dilutive
resources.
“Capital markets are very
friendly to technology plays,”
van Mierlo said. “In two years’
time, the only solar modules to
be sold in India have to be
domestically manufactured
and everyone understands
that. Module making will be
the most profitable part of this
AFP
supply chain and a lot of peo-
ple are interested because of
this underlying market
dynamic.”
At present, India has a
domestic manufacturing capa-
city of only 3GW for solar cells
and 15GW for solar modules.
“Our technology that has
been perfected over the last 10
years can help in 50% cost sav-
ings,” added Abhijeet Birewar,
1366 Technologies’ India rep-
resentative.
T
turing capacity by bringing “Given the combination of he past year has wit-
direct investment of around factors such as domestic con- nessed a 600% increase
₹17,200 crore. State-run tent requirement, ALMM in malware attacks,
Indian Renewable Energy (approved list of modules and resulting in widespread data
Development Agency Ltd has manufacturers), custom duty breaches. As we settle into the
invited bids for and PLI makes new normal of working from
setting up solar 1366 Technologies India a pretty home, secure networks used by
manufacturing is scouting for good bet for clean enterprises have gone from
units under the an Indian partner, energy transition hundreds to thousands across
PLI scheme. who will handle anywhere in the locations to help employees
“The commit- world,” van and customers access data.
the part of
ment to clean up Mierlo said. Maintaining this perimeter is
the power supply module While Chinese a shared responsibility. In the
is clear. It is clear manufacturing solar module latest episode of Virtual Work- (Clockwise from top, left) Priya Kanduri, CTO and vice president-
that the govern- makers have place 2.0,‘Cloud security is a cybersecurity services, Happiest Minds; Rajarshi Puryakastha,
ment has decided raised prices by shared responsibility–who is head, pre-sales, Mecaa and India, Tata Communications; Byju
that India will have a role in the over a fifth since December, managing your share?’, pow- Joseph, CTO, Future Generali; Kirti Patil, joint president and CTO,
global energy transition, and it India has decided to impose ered by Tata Communications Kotak Mahindra Life Insurance Company; and Rahul Monie, CTO
has developed an extremely 40% basic customs duty on and Livemint, industry experts and CISO, Absolut Data-Intelligent Analytics.
thoughtful approach to sup- solar modules and 25% on and leaders came together to
port and develop domestic solar cells from 1 April 2022. “I understand the intricacies of to a shortage of people, skills workforce in IT and compliance
solar manufacturing,” said van don’t know of a single industry cloud literacy and how organi- and automation. Also, there are is only looking at meeting secu-
Mierlo. that is concentrated in a single zations can build a secure digi- too many devices in one orga- rity needs. Spending on compli-
The domestic manufactur- country. This is not an ideal tal infrastructure to prioritize nization,” she added. ance has increased drastically
ing plan for solar equipment situation,” van Mierlo added. data protection. Changing times demand a over the last two years. And the
An increasing number of change in the way we perceive wave of regulatory changes and
companies are using the cloud, security, more so when more digitization is continuing. So, it
to leverage analytics and use and more companies are mov- is necessary for all financial

Markets recover even as Fed’s taper talk spooks investors automation, with an average
enterprise today having 900
applications. And, as the new
ing their operations to the
cloud. “If the security threat
was earlier at five on a scale of 1
institutions to be technology
driven to catch up with the
change,” said Byju Joseph, CTO,
avenues of intrusion open up, to 100, now it has increased Future Generali Insurance.
Nasrin Sultana sell equities as statements by have expectedly triggered a tions of faster vaccination and businesses are faced with all- beyond 100. There’s no choice “Digital transformation with-
nasrin.s@livemint.com officials of the Federal Reserve snapback in mobility, accord- opening up of the economy new security threats. “ If we for any company not to adopt out security transformation is
MUMBAI indicated that the shift ing to Nomura. will keep buying interest high technically analyse the last one- cloud, otherwise work from not going to take us anywhere.
towards faster policy tighten- “A third pandemic wave on corrections. year data, the top five most home would not have hap- Cybersecurity is on the agenda

I
ndian markets recovered
losses during late trade on
Monday after remaining
under pressure following a
global sell-off.
Weak currency, rising crude
prices and fears related to sus-
tainability of foreign institu-
tional investor inflows because
of the taper talk by the US Fed-
eral Reserve had increased the
concerns of investors in the
past couple of days.
The BSE Sensex rose 230.01
points or 0.44% at 52,574.46.
The Nifty edged 63.15 points
or 0.40% higher at 15,746.50.
Shares in the Asia-Pacific
region were mostly lower.
Japan’s Nikkei fell more than
3%, while Hong Kong’s Hang
Seng index dropped 1.28% and
South Korea’s Kospi declined
0.83%.
Investors are continuing to
ing was a natural response to
economic growth and particu-
larly inflation.
Analysts feel a gradual
tapering seems the most likely
scenario for most economies,
including India.
“Domestic equities wit-
nessed brisk recovery after
seeing steep gap-down open-
ing today and shrugged off
weak global cues once again.
Notably, strong rebound in
PSU banks was a prime factor
for the market’s recovery,”
said Binod Modi, head strat-
egy, Reliance Securities.
Even though India’s daily
covid caseload falling offers
comfort, the indication of a
third wave in the next six to
eight months in the country
can raise fresh concerns.
However, the impact of the
third wave can be the least
The BSE Sensex closed at
52,574.46, up by 0.44% MINT
compared to the first two
waves.
“Minutes of the Reserve
Bank of India (RBI’s) policy
meeting published on Friday
were favourable and indicate
continued accommodative
stance from the RBI to spur
economic activities in the
country,” Modi said.
Relaxed lockdown meas-
ures and moderating cases
over the next few months is a “India’s valuation premium repeating cyberattacks have pened. It’s not just the employ- of regulators, government as
key risk that bears monitor- has reached 12% and 55% com- been ransomware, phishing, ees, but also customers that we well as the board. But what is
ing,” it said in a note. pared to the five-year histori- crypto jacking need to think different for the life insurance
The Nomura India Business cal average of 8% and 45% for and IoT about,” said industry is that we carry finan-
Resumption the MSCI World attacks, result- Rajarshi Pury- cial and medical information of
Index (NIBRI), Analysts say a and MSCI Emerg- ing in data akastha, head, the customers which we need
which tracks gradual tapering ing Markets, breach, data pre-sales, to keep for the long term. It is an
high-frequency seems the respectively. We loss and Mecaa and added responsibility,” said Kirti
data, rose to 81.3 most likely expect India’s val- potential reputation loss,” said India, Tata Communications. Patil, joint president and CTO,
for the week end-
scenario for most uation premium Priya Kanduri, chief technology The insurance industry has Kotak Mahindra Life Insurance
ing 20 June, up to remain at ele- officer (CTO) and vice presi- leveraged digital tools effec- Company Ltd.
6.4 percentage economies, vated levels as it dent, cybersecurity services, tively—over 93% of new cus- “There is a dire shortage of
points from the including India offers one of the Happiest Minds. tomers have been acquired dig- skills and the number of people
previous week. fastest growths in There are many tools availa- itally during the pandemic who have an understanding of
The Indian the region. Addi- ble to prevent attacks, such as compared to just 60% in 2019 these technologies is limited.
markets may remain suscepti- tionally, robust FPI inflows anti-malware or anti-phishing and dependency of physical We hear about some kind of
ble to some profit-booking, and improving corporate fun- softwares, but organizations verifications has been replaced ransomware attack every 8 min-
especially from foreign portfo- damentals, such as balance are still at risk. “I feel there are with digital KYCs. The industry utes. The volume of data and the
lio investors (FPIs), according sheet health and return on three reasons for this. First, is also extensively making use ability to process the data has to
to Credit Suisse Wealth Man- equity, also support the higher there are too many technolo- of AI portals and chat bots. be done fast and seamlessly.
agement, India. valuation premium,” Jitendra gies and solutions making it “Over the last two years, the Therefore, you need guys who
However, the outflows will Gohil and Premal Kamdar, hard to make the right choice. regulator has actually sup- understand what they are
be limited as India’s underly- analysts, Credit Suisse Wealth Second, an organization will ported a transformatory way of doing,” said Rahul Monie, CTO
ing fundamentals have Management, India, said in a find it impossible to constantly doing business. Today, about and CISO, Absolut Data-Intelli-
strengthened and expecta- note on 18 June. monitor work processes owing 10-15% of the organization’s gent Analytics.
06 TUESDAY, 22 JUNE 2021
MUMBAI CORPORATE LIVEMINT.COM

Ficci seeks
hike in sops ‘We’re seeing steady demand No other option for
businesses but to
for electric
3-wheelers
for pure protection policies’ go green: Ambani
Kalpana Pathak
Staff Writer Deborshi Chaki kalpana.p@livemint.com
feedback@livemint.com deborshi.c@livemint.com MUMBAI
NEW DELHI MUMBAI

T
he world has no option

L
obby group Federation of
Indian Chambers of Com-
merce and Industry
(Ficci) has pitched for increas-
ing the electric three-wheeler
incentive to ₹15,000 per kWh
under the Faster Adoption and
Manufacturing of Hybrid and
Electric Vehicles (Fame).
This comes in the backdrop
of the government recently
modifying the second phase of
the Fame scheme by increas-
ing the incentive for electric
two-wheelers to ₹15,000 per
kWh. Also, the ministry of
heavy industries and public
enterprises allotted the
demand aggregation of elec-
tric three-wheeler and bus
components to state-run Ene-
rgy Efficiency Services Ltd.
“Ficci appreciates the sig-
nificant move taken by the
government to increase the
demand of electric vehicles in
2W, 3W and e-buses segment
and would request that same
D
espite the rise of claims but to do business in a
due to covid-related sustainable manner, and
deaths in the past one year, Reliance Industries Ltd (RIL)
ICICI Prudential Life will transform each of its units
Insurance Co. Ltd, one of as its strives to achieve net zero-
India’s largest private insurers does not carbon emissions by 2035,
see the underwriting risk going up for chairman Mukesh Ambani
the company. In an interview, N. S. said. RIL chairman Mukesh Ambani
Kannan, managing director and chief “We have no option as a soci- spoke at the Qatar Economic
executive officer, discusses the impact ety, as a business, but to really Forum on Monday. REUTERS
of the pandemic on the company and adopt a sustainable business
emerging trends. Edited excerpts: model,” the RIL chairman and with crude processing capacity
What has been the impact of the managing director said at the of 1.24 million barrels per day.
second wave on your business? start of the three-day Qatar It intends to develop next-
We are seeing a steady demand for Economic Forum. Sustainabil- generation carbon capture and
pure protection policies, especially ity is a prerequisite for every storage technologies and is
group term insurance as employers business to survive, and this evaluating novel catalytic and
have started talking to companies like means transforming busi- electrochemical transforma-
us to say they want to increase the cov- nesses and integrating them tions to use CO2 as a valuable
erage of employees, not only coverage with the future, the billionaire feedstock as RIL has proprie-
of employees, but also coverage per businessman added. tary technology to convert
employee. Post the second wave, we that... generally, mortality has been change post the covid experience? period. But we will wait to see some Ambani had mentioned his transportation fuels to valuable
are seeing more and more people com- within our assumptions overall and it I want to assure you that there is no more research and some more long- plans to make the oil-to-tele- petrochemical and material
ing in wanting to buy protection prod- has been broadly in line with what was proposal to increase the price. To term trends before we increase the com-to-digital conglomerate building blocks. RIL also
ucts. The translation of the entire expected. So essentially covid-related answer your question on the long-term pricing. I’m sure even the reinsurers net carbon zero by 2035 at the intends to replace transporta-
demand into business has been faster in mortality did add additional claims of mortality impact of covid, we really will also adopt the same as what we company’s annual tion fuels with
the group term business. However, about ₹220 crore. don’t know. I just wanted to be upfront would expect. general meeting The primary clean electricity
there are some frictions that are essen- Apart from protection plans, clear. I don’t want to say we have some From a customer’s perspective last July. challenge post and hydrogen.

demand incentive revision
for electric 3-wheeler could
be considered,” the lobby
group said in a statement on
Monday.
The Centre may also extend
the Fame scheme created to
reduce vehicular emissions
and dependence on fossil fuel
by two years till 31 March 2024
as reported by Mint earlier.
“These actions are well
aligned with the vision of pro-
moting green mobility for the
masses, and the increased
deployment of electric 2W,
3W and buses will not only
bring down the pollution in
our cities, but also reduce cost
of transport for the citizens,”
the Ficci statement added.
‘
tially arising on account of underwrit- which are the product categories superior insights. Because as would insurance products RIL, India’s pandemic is to get When asked
ing of mortality risk. Also, during this where you have increased trac- you know, the become difficult to largest private rid of vaccination about the biggest
period we have not been able to send tion? pandemic is develop- get in certain situa- sector enterprise, challenge for
divide and a
people to the laboratories or hospitals In the savings business, we are cur- ing, we know the There is no proposal to tions ? has laid out a industry as the
to do medical examina- rently seeing steady immediate mortality increase the price... We It is not going to 15-year vision to digital access world emerges
tions, nor are we able to m INTERVIEW demand as customers impact in the form of impact on a normal transform itself divide, he said from the pan-
send the technicians to seek certainty of returns death claims we are will wait to see some human life, underwrit- into a new energy demic, Ambani
the homes of the customers to fulfil the on investments because life outside is getting that we are more long-term trends ing and getting an company, with its said the primary
medical examination. So yes, the a little bit uncertain. And also, the inter- very clear about. before we increase insurance will get eas- focus on recycling carbon diox- challenge is to “get rid of the
demand has impacted, people are est rates have been coming down. So However, what is ier at least, because ide, creating value from plastic, vaccination divide” and a digi-
wanting to buy policies, but the fulfilm- given the general need for financial going to be the
the pricing there are almost more and building clean and afforda- tal access divide as more people
ent has been slow. security we are seeing the importance long-term mortality N.S. Kannan ways of reaching out to ble energy with hydrogen, are forced to stay home to work
Are you seeing any trends pertain- of non-market-linked products in our impact of covid on the MD & CEO, ICICI Prudential the customers, more wind, solar, fuel cells and bat- and study in a pandemic-hit
ing to non-covid claims this year? business. The second area where we assumptions, we technology platforms tery. world. Reliance Jio Infocomm
Non-covid claims have been broadly are seeing a lot of demand is annuity really don’t know. So, it is not proper, being available. I don’t think there is The company has begun aims to close this access gap
the same as last year. We don’t see any which has become one of the most pop- when you’re writing a 40- or 50- year any problem. In the medium term, I converting its CO2 emissions at and boost connectivity, which
increase here. They have been broadly ular products with more and more peo- business, to load an immediate experi- don’t see a genuine customer not get- Jamnagar into high-value pro- according to Ambani is now
at the same range. Of course, we will ple looking to plan for retirement well ence on account of death claims on the ting insurance. So I don’t see under- teins, nutraceuticals, advanced akin to a basic need. “The digi-
have to wait and see whether all the tag- in advance. customers who are buying the policy, writing becoming tighter, as there is a materials and fuels. The com- tal divide must be bridged,” he
ging and everything is correct or not Do you think the underwriting cri- because we don’t know how the mor- huge opportunity in India where insur- pany has the largest single site said. “Both among nations and
over a period of time. But we don’t see teria for insurance companies will tality is going to develop over the long ance is very under-penetrated. refinery at Jamnagar in Gujarat within nations.”

Govt to tighten e-commerce rules KKR buys $625 mn stake in Vini

FROM PAGE 1
preferential treatment, the new
e-commerce rules propose to
ensure none of the related par-
ties to a marketplace are listed
as sellers or are allowed to use
any consumer information
(from the online platform) for
‘unfair advantage’. Further,
even logistics service providers
Operations of the automotive industry are expected to bounce to these marketplaces will not
back to 75% of the normal level this month, Hyundai said. MINT be allowed to give preferential
treatment to any sellers.
Marketplaces will also have to
identify goods based on their
country of origin. BLOOMBERG
e-commerce firms. Product
suggestions depend on the
consumer’s preference and the
goods they have frequently
bought in the past,” said an
executive at an e-commerce
firm, requesting anonymity.
Through the proposed
changes in rules, the ministry
has also made it clear that in the
event a seller fails to deliver a
good or service, the final liabil-
ity will fall on the e-commerce
marketplace.
FROM PAGE 1
brands have seen demand only
grow. Most FMCG companies
are doing well. The number of
consumers is growing, and
investors continue to bet on this
trend,” said Harminder Sahni,
founder and managing director
of consultant Wazir Advisors.
Founded in 2010, Vini manu-
factures, markets and distrib-
utes its branded deodorants,
cosmetics and toiletries
The Vini deal reflects the
continued interest of PEs in
from ₹886.9 crore in the previ-
ous year, according to the latest
filing with the registrar of com-
panies. Profit rose 38% to
₹194.7 crore from ₹141.6 crore.
For KKR, the transaction
reflects its new focus on buy-
outs in India as against its ear-
lier mainstay of credit invest-
ments. This is the third major
buyout for the PE firm in the
past two years.
In December, KKR named
Gaurav Trehan as the new chief

Hyundai betting on The ministry also proposed

tightening of rules for ‘private
labels’ by discouraging the use of
As a part of the new proposed
rules, marketplaces will also
“The proposed rules seek to
hold e-commerce entities
which operate in India
through its flagship brand Fogg
and other brands such as
Ossum and GlamUp. It sells its
the consumption story. GETTY

Darshan Patel will continue

of its private equity business in
India, while Sanjay Nayar, who
set up shop in the country more

personal mobility a marketplace’s brand entity for

the promotion and sale of goods.
“No e-commerce entity
which holds a dominant posi-
shift to fuel demand tion in any market shall be
allowed to abuse its market
position [...] Every e-commerce
Malyaban Ghosh stronger. The vaccination also entity shall, as soon as possible,
malyaban.g@livemint.com gives us hope that we will be but no later than 72 hours of the
NEW DELHI able to combat covid,” he said. receipt of the order, provide
Automakers such as Hyun- information under its control
have to identify goods based on
their country of origin and pro-
vide a filter mechanism at a pre-
purchase stage for customers.
Online marketplaces will also
have to offer alternatives to
these imported goods to pro-
vide a “fair opportunity” to
domestic sellers, according to
the ministry.
“The fact that online market-
accountable. At first glance, it
will be interesting to see how
practically these changes will
be implemented. The proposed
rules also seek to regulate the
manner in which consent will
be obtained from consumers,
for the sharing of their data
with other persons,” said Arch-
ana Tewary, partner, J Sagar
Associates, a law firm.
products through a network of
700,000 points of sale and
3,000 dealers. Vini’s products
are also sold in South and West
Asia. Darshan Patel started Vini
after his family sold its pharma
business, Paras Pharmaceuti-
cals, to Reckitt Benckiser in
2010.
Sahni said investors are par-
ticularly keen on firms with a
as the chairman of Vini’s board,
and Dipam will be named vice-
chairman.
“Vini has experienced
remarkable growth over the
last 11 years, but we believe we
are in the early stages of what
our brands can deliver as con-
sumer demand for high-quality
personal care products con-
tinue to explode in India, South
than a decade ago, was made
the chairman of the buyout
firm in India.
Apart from the major buyouts
of JB Chemicals and Pharma-
ceuticals and waste manage-
ment firm Ramky Enviro, in the
past 12 months, the PE firm has
invested in Lenskart, Reliance
Jio and Reliance Retail.
“Darshan and Dipam are

H
yundai Motor India dai witnessed a swift recovery or possession or the assistance places will now have to offer E-commerce firms operat- wide distribution network, such Asia and other fast-growing industry pioneers, and we are
Ltd, the country’s sec- in sales during August and to a government agency, which alternatives to imported goods ing in India will also have to as Vini. “Also, we have seen that markets around the world,” excited to work with them...to
ond-largest auto- September last year as a result is lawfully authorized for inves- goes against the basic rules of register under the Department in online commerce—whose said Darshan Patel. capture new growth opportuni-
maker, expects demand to of the increased preference for tigative or protective or cyber- ‘free market’ and ‘non-discrim- for Promotion of Industry and share is only increasing—the Vini Cosmetics’ revenue rose ties, stemming from a young,
rebound gradually as personal personal mobility and faster- security activities,” the minis- ination’ of sellers, which are Internal Trade, according to winners have always been the 21% to ₹1,070.9 crore for the emerging middle-class,” said
mobility needs of customers than-expected improvement try suggested. expected to be followed by the new proposed rules. stronger brands,” Sahni said. year ended 31 March 2020 Gaurav Trehan, partner at KKR.
will be more pronounced. This in economic activity.
comes after the second covid Hyundai reported the high-
wave with lockdowns imposed est ever production in Septem-
by states to contain the spread ber and October, expecting
of the virus being lifted gradu- good demand during the festi-
ally following a drop in cases. val season.
Vaccinations hit a record on Day One of revised policy
The South Korean manufac- It also eclipsed Maruti Suz-
turer is, however, uki India Pvt. Ltd FROM PAGE 1 reports, Bharat Biotech will states, which can use them to the earlier strategy from the
cautious about a However, the as the leading continue to produce only Booster shot inoculate all adults of age 18 Supreme Court and states.
further rise in manufacturer of ernment said India could have 20-25 million doses in July, The number of doses delivered on 21 June in India was close years and above. The remain- Over the past 24 hours,
South Korean
covid cases and SUVs as sales of as many as 10 million doses of with the capacity likely to dou- to double its previous single-day record. ing vaccines will be procured India reported 53,256 new
automaker is Doses of covid-19 vaccines administered
the high fuel pri- cautious about a Creta and Venue covid-19 vaccines available per ble from August. On 28 May, 10,000,000 by private hospitals. cases, the lowest since 24
ces, which might picked up sub- day in July and August. the Union health ministry said First Dose Second Dose In the earlier strategy, March. Infections hit a peak of
further rise in
derail the stantially. Hyun- NITI Aayog member V.K. Covaxin production was being 8,000,000 which was implemented from about 400,000 a day in May,
expected recov- covid cases and dai’s total domes- Paul said on Monday that increased from 10 million 1 May, the Centre would pro- and deaths soared to around
ery in sales. high fuel prices tic wholesale administering 10 million shots doses a month in April to 6,000,000
cure 50% of vac- 170,000 in April-
Operations of declined by just per day was not a “set goal”. 60-70 million a month by 4,000,000
cines, which Madhya Pradesh May.
the automotive 2.8% to 471,534 “As the ramping up takes July-August. The capacity is would be used to and Karnataka With an overall
industry are expected to units, while the overall dis- place, speed of implementa- expected to reach nearly 100 2,000,000 vaccinate people administered the caseload of 29.9
bounce back to 75% of the nor- patches in the passenger vehi- tion should also ramp up, and million a month by September of age 45 years highest vaccine million, India
mal levels in June, while in cle industry also dropped by that would lead to a certain 2021, it added. 0 and above, while ranks second-
16 Jan 21 Jun doses, at over
May it was just 25% because of 2.25% to 2.71 million units. number,” Paul said in an inter- Dr Reddy’s, which has the the remaining highest globally,
the lockdown, according to “The shift towards personal view with the CNBC-TV18 rights to market the first 250
Source: CoWin
50% would be 1.5 mn and nearly behind the US.
Tarun Garg, director, sales, mobility is going to be a big channel.“There is a demon- million doses of Sputnik V in SARVESH KUMAR SHARMA/MINT
procured by 1.1 mn, respectively Experts warned
marketing and service, Hyun- driving factor. Sometimes, we stration by the system of how India, said the vaccine has only Dr. Reddy’s will announce the arat and Bihar vaccinated either states or that millions
dai Motor India. undermine it and mobility much can be done on a given had a soft launch yet and more commercial launch of Sput- more than 300,000 people. private hospitals remain vulnera-
“Today, almost 85% of the needs are only going to day; at least, this is something arrangements were being nik,” the company said. Delhi administered 76,216 and could be used to inoculate ble to infections, particularly
Indian market is open. We increase whether for commut- that should become obvious made. “All necessary supply On Monday, Madhya Pra- doses. all adults of 18 years and above. in the countryside, where two-
look forward to a better July. ing to office or vacation. So, by the end of the day,” he said. arrangements are being exe- desh and Karnataka adminis- The new phase of vaccina- While Modi said the revision thirds of the population lives.
The lesson we learnt from last this will be a strong driving Serum Institute of India (SII) cuted to ensure availability of tered the highest vaccine tion was announced by Modi of the procurement strategy of And a swift reopening of cities
year’s lockdown is that the factor. I don’t think there is is expected to produce 100 both dose components in the doses, at over 1.5 million and on 7 June. In a reversal of its the Centre buying on behalf of could complicate mass immu-
Indian customer is quite resil- any reason to panic and the million doses of Covishield in right quantity and at the right nearly 1.1 million, respectively, earlier policy, the Centre said all states followed a rethink on nization efforts.
ient and the shift towards per- experience of last year will July and perhaps more from time at partner hospitals. Once while Tamil Nadu, Rajasthan, it would procure 75% of the part of states, the revised strat- Rhythma Kaul of Hindustan
sonal mobility is getting come in handy,” Garg said. August. According to media the pilot phase is completed, Maharashtra, Haryana, Guj- vaccines and distribute it to egy also followed criticism of Times added to the story.
LIVEMINT.COM CORPORATE TUESDAY, 22 JUNE 2021
MUMBAI 07

DHFL FD holders may Adani unit seeks more time to take over
three airport assets privatized recently
get additional ₹966 cr Rhik Kundu
rhik.k@livemint.com
NEW DELHI
airport assets as the company
assumed certain growth in air
traffic, but the takeover has
since been delayed due to the

T
he Adani group has pandemic, with domestic pas-
deferred to December senger traffic expected to pick
Lenders are contemplating a higher payout from insolvency proceedings plans to take over airport up in financial year 2023, said
assets in Jaipur, Guwahati and an expert who tracks the air-
Thiruvananthapuram as oper- port and logistic business of the
Shayan Ghosh & Deborshi Chaki ating these businesses is not conglomerate closely.
MUMBAI Relief in sight likely to be financially feasible “For the group, it would not
Secured financial creditors such as banks plan to let go of ₹1,853.21 crore during the pandemic. This be commercially feasible to

F
ixed deposit holders of Dewan or 5.4% of the total resolution value. comes even as the group made take up the airports before pas-
Housing Finance Corp. Ltd Additional outflow from secured financial creditors (in ₹ cr) huge strides to emerge as Adani Airports has sought to invoke force majeure, citing senger traffic recovers as they
(DHFL), who are on the verge of India’s biggest airport operator. disruptions caused by the second wave of the pandemic. MINT would have to shell out fixed
losing a large part of their savings, Army Group Insurance Fund 21.85 Adani Airports Holding Ltd costs and address other com-
Total
may get some relief, with lenders (AAHL), the airport arm of the The conglomerate’s intent to in cities such as Jaipur, Ahmed- mercial aspects from their own
to the bankrupt mortgage lender contem- Navy Children School 1.95 1,853.21 conglomerate, has sought to foray into the airport business abad, Guwahati, Lucknow, pocket,” the person said,
plating a higher payout to FD holders
crore invoke force majeure, citing was aimed at leveraging the avi- Mangaluru and Thiruvanan- requesting anonymity.
from the firm’s insolvency proceedings. Air Force Group Insurance Society 56.09 disruptions caused by the sec- ation boom in India, said Nrip- thapuram when the airport “The more they can delay
DHFL’s committee of creditors (CoC) ond wave of the pandemic. endra Singh, research head and privatization process was rolled taking up these airport pro-
may approve an additional ₹966 crore for Fixed deposit holders 965.74 The Airports Authority of strategy consultant, aviation, out by the government in the jects, the more commercially
FD holders from the recoveries made, India (AAI), which had last year Frost & Sullivan. past few years. viable they are for the group,”
according to internal documents related Unsecured NCDs 544 approved AAHL’s request for “The domestic traffic is AAHL became the country’s the person said. An AAHL
to DHFL’s resolution plan reviewed by extension to take over Luc- expected to increase exponen- largest airport operator after spokesperson did not respond
Mint. The proposal is subject to the out- Small secured NCDs 263.61 know, Ahmedabad and Manga- tially once the pace of vaccina- picking up a controlling stake to queries over email.
come of voting this week and would entail luru airports, will meet later tion increases and the majority in Mumbai International Air- According to a March report
money being redistributed between vari- NCDs: non-convertible debentures Source: DHFL CoC meeting resolution this month to decide on the lat- of the population gets vacci- port Ltd, which operates the by rating agency Icra Ltd, the
ous categories of creditors. est request of Adani group. nated by December. All three Mumbai airport, earlier this airports industry is likely to
PARAS JAIN/MINT
As of date, FD holders have claims A senior AAI official con- airports, whose takeover is year. The Chhatrapati Shivaji incur a net loss of ₹5,400 crore
worth ₹5,299 crore, but will likely recover Lenders have also proposed an addi- the plan,” said the NCLT order cited firmed the development. How- being delayed, are dominated Maharaj International Airport in financial year 2021 because
less than half of it. tional ₹540 crore for unsecured non-con- above. ever, the public sector airport by domestic traffic,” Singh said. is the second-largest in India in of a sharp decline in passenger
If the additional payout is approved, FD vertible debenture (NCD) holders, ₹263.6 The tribunal, however, made it clear operator is yet to take a deci- Adani group had won com- terms of passenger traffic. traffic following the outbreak
holders will collectively receive ₹2,189 for small secured NCD holders. Others eli- that the review was only with regard to the sion on this, the official said. petitive bids to operate airports AAHL bid aggressively for of the coronavirus pandemic.
crore, taking the recovery for FD holders gible for more funds than originally envis- distribution of funds and did not concern
to 41.31%, from 23.08% at present. aged include the Army Group Insurance the total resolution plan outlay. “We fur-
The FD holders have been fighting to Fund, which will get ₹21.85 crore; the ther make it clear that there is no addi-
recover their savings ever since the mort- Navy Children School, which will get ₹1.95 tional monetary obligation for the suc-
gage lender was admitted to the insol- crore; and the Air Force Group Insurance cessful resolution applicant to pay any-
vency tribunal in December thing more than what it has
Tanishq-Mia to gain from new-age buying trends
Suneera Tandon
2019. They have a 6.18% vot- MONEY MATTERS committed in the resolution launched several services, could grow to around 15% in video call, and convert it into a
ing share in the CoC and have plan, an amount of ₹37,250 suneera.t@livemint.com such as video calling, endless the next few years, driven by sale. Most likely, such prod-
been opposing DHFL’s reso- IF the additional THE move will take FD holders have a crore. It is only an inter se dis- NEW DELHI aisle, virtual jewellery try-on, increased consumer adoption, ucts are beyond ₹50,000 all
lution plan, terming it dis- payout is approved,
FD holders will
the recovery for 6.18% voting share in
fixed deposit holders the CoC and have
tribution of resolution money real-time live assisted chats convenience, as well as efforts the way up to ₹2-3 lakh. We

N
criminatory. collectively receive to 41.31%, from been opposing the among various creditors,” it ew-age shopping and appointment-based shop- made by the company to push find that 90% of these custom-
The latest development ₹2,189 crore 23.08% at present resolution plan said. channels, such as ping to boost sales. Even after sales both online and offline. ers prefer to complete the final
comes after the Mumbai Piramal Capital had online and omni-chan- lockdown restrictions were “It may not jump from 9% to transaction at the store. Then,
bench of the National Com- received approvals from the nel stores, to select designs eased, some of the trends have 15% in one go, and may take remote shopping is also catch-
pany Law Tribunal (NCLT) suggested that Society, which will get ₹56.09 crore. Competition Commission of India and the and purchase jewellery using caught up with consumers. two or three years.” ing up, which is not enabled by
creditors relook at the distribution of Secured financial creditors such as Reserve Bank of India for its bid to take assisted tools, may help “New-age ways of buying con- The jewellery retailer is see- somebody coming online but
funds. On 7 June, the dedicated insol- banks will let go of ₹1,853.21 crore or 5.4% over DHFL. Its resolution plan got 94% Tanishq and Mia jewellery tributed about 9% of our total ing a change in consumers’ by reaching out to shoppers
vency tribunal approved Piramal Capital of the total resolution value. votes from DHFL’s creditors. brands drive 15% of their busi- sales (for Tanishq and Mia), shopping behaviour. For those through WhatsApp, or phone
and Housing Finance Ltd’s bid to take “With regard to the decision on distri- Mint reported on 8 June that Piramal nesses over the next few years, last year, which in consumer buying everything online, the call,” he said, adding as of 20
over DHFL for ₹37,250 crore. The tribu- bution to public depositors, fixed deposit group’s offer includes ₹12,700 crore in said Ajoy Chawla, chief execu- price terms was about ₹1,600 ticket size is typically less than June, over 270 Tanishq stores
nal said in its 7 June order that considering holders and subscribers to NCDs, we upfront cash, ₹3,000 crore in interest tive officer, jewellery division, crore-plus, which is a signifi- ₹50,000. “Others use omni- were operating across India,
lakhs of small investors and senior citizens request the CoC to reconsider their griev- income on DHFL’s books and NCDs worth Titan Co. Ltd. cant number, from less than 1% channel—they select online, and more were set to open as
had deposited their savings, they should ances... their request is only to enhance ₹19,550 crore to be repaid over 10 years. Following the covid-19 out- in the year before.” and then we connect them to a states such as Karnataka ease
get a “fair” share of the resolution money. the percentage of the payment made in shayan.g@livemint.com break last year, Tanishq had Chawla said such channels store, the store could do a restrictions.

Banks Board Bureau

An Autonmous Body of Government of India
invites application for the position of
Managing Director & Chief Executive Officer
of
Punjab National Bank
The Institution: Established in 1894, Punjab National Bank is today the
second largest Public-Sector Bank in the country. After amalgamation of
Oriental Bank of Commerce and United Bank of India, PNB has now a
network of over 10,760 branches, 103,000 employees and global business
of `18,45,739 crore. The MD & CEO bears responsibility of creating value
for all customers, investors and employees, and of making it the first
choice for all stakeholders. You will be expected to position PNB as
the “Most Preferred Bank” for customers, the “Best Place to Work In”
for employees and a "Benchmark of Excellence" for the industry.
The MD & CEO shall hold the office for a term of three years from the date
of joining, subject to a maximum age of 60 years.
Eligibilities:
(A) The candidate should be in the age group of 45 to 57 years as on 19-
Sept-2021.
(B) should have a minimum experience of 15 years in mainstream banking
of which at least one year should at the Board Level as on 19-Sept-2021.
For details of the other eligibility terms and conditions, please see the
advertisement on https://www.banksboardbureau.org.in/ under
the“Vacancies” tab.
How to apply: Interested candidates can apply online through the link
available on https://www.banksboardbureau.org.in/ underthe “vacancies”
tab or directly at https://www.research.net/r/MDCEOPNB
Last date of application: 17:00 hours IST on 17-July-2021.
Further details / corrigendum shall be published on the
Bureau’s website.

Growth is
not just about chasing
success. It’s also about
learning from failures.
Growth is...On.

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08 TUESDAY, 22 JUNE 2021
MUMBAI GLOBAL LIVEMINT.COM

As US economy rebounds from Crowds allowed at

Olympics venues
covid, foreign investors rush in despite warnings
Reuters
feedback@livemint.com
TOKYO

US is likely to be top destination for overseas investment, according to UN, as businesses meet demand surge
U
p to 10,000 domestic
spectators will be
allowed in Tokyo 2020
Paul Hannon billion, and are projected to rise a fur- Adriatic seas have cancelled public venues, Olympics organizers
feedback@livemint.com ther 5% this year, according to the tenders that Chinese state-owned said on Monday, a decision
American Pet Products Association. companies were set to win, or are mov- that cuts against the recom-

T
he extraordinary recovery
of the US economy is likely
to make the country the
world’s top destination for
overseas investment this
year and next, according to new
United Nations projections, with for-
eign businesses drawn by the prospect
of a rapid and sustained rebound in
consumer spending and the Biden
administration’s multitrillion-dollar
infrastructure plans.
According to UN figures published
Monday, overseas investments by busi-
nesses around the world fell by a third in
2020 from the previous year. The US
recorded a 40% fall in investment but
narrowly held on to its long-held posi-
tion as the top destination ahead of
China. The UN in January estimated
that the US had lost the top slot.
For 2021 and 2022, the UN expects
the US to cement its leading position,
with China in the second spot, as over-
seas investors expand capacity to meet
huge post-pandemic demand.
The Federal Reserve expects the
American economy to grow 7% this
year, supported by nearly $6 trillion in
approved stimulus spending and
about $2.6 trillion in extra savings
American households have built up
during the pandemic.
“We’re incredibly bullish about the
US economy, even more so now,” said
Mark Vassella, chief executive of Blue-
Scope Steel Ltd, an Australian steel
company that is expanding capacity in
the US to meet demand from car mak-
ers and construction companies.
With the US and the wider global
economy recovering at a faster pace
than many expected at the start of the
year, the UN Conference on Trade and
Development, or Unctad, expects
businesses around the world to
According to UN figures, the US recorded a 40% fall in investment in 2020 but
narrowly held on to its position as the top destination ahead of China. BLOOMBERG
increase foreign investments by
10-15% this year and a further 20-30%
in 2022. That would take foreign
investment back above pre-pandemic
levels. However, it seems unlikely that
flows of foreign investment will soon
exceed the highs seen just before the
global financial crisis.
Flows of fresh foreign investment
rose during the period of rapid globali-
zation that ran from the early 1980s
through to the onset of the global
financial crisis, peaking at $1.8 trillion
in 2007. While
slow growth in rich
countries, particu-
larly in Europe,
depressed investment in subsequent
years, it hit a new high of over $2 tril-
lion in 2015. The 2020 total of $1 tril-
lion was the lowest in 15 years.
But now, companies like BlueScope
see brighter prospects. The company
is spending $700 million to add a third
electric arc furnace and a second
caster for molten steel at its North Star
minimill in Delta, Ohio.
The expansion, approved in 2019
and due to start producing steel early
next year, will add about 850,000
metric tons a year on top of the mill’s
current capacity of roughly 2.1 million
tons. Another project to further raise
capacity at the mill, likely worth
around $200 million, could be green-
lighted soon after.
A bounce in demand for steel—
whose US prices are at record highs—
from American car makers and con-
struction companies will likely accel-
erate that project, said Mr. Vassella.
“And all of this is before any money has
been spent on the infrastructure
rebuild in North America,” he said.
“When you try and
contemplate the
scale of the invest-
ment that’s being
talked about by the new administra-
tion, you know, particularly when you
sit here in Australia, the numbers are
mind-boggling.”
European companies are also plan-
ning to increase their presence in the
US Nestlé Purina Petcare, a subsidiary
of the Swiss multinational, said late last
year it would spend around $1 billion
to build two new US factories, in Ohio
and North Carolina, to meet surging
US customer demand.
Pet food and treat sales in the U.S.
increased almost 10% last year to $42
Sales rose as people confined to their
homes bought new pets or focused
more on their animals’ health.
British drug giant AstraZeneca PLC
is buying Boston-based Alexion Phar-
maceuticals Inc. for $39 billion in cash
and stock to get a foothold in the lucra-
tive field of rare-disease drugs.
CLAAS GmbH, a German manufac-
turer of agricultural equipment like
combine harvesters, invested last year
to expand its plant in Omaha, Neb., by
20%. Production at the plant surged
about 25% last year, as government
stimulus payments encouraged farm-
ers to upgrade their machinery, said
Leif Magnusson, the company’s head
of sales for the Americas region. “The
stimulus was at levels that were
unheard of for U.S. farmers and pro-
ducers,” said the executive, who
expects a further 15-20% increase in
US production this year.
One short-term headwind is an
overhaul of the rules taxing multina-
tional companies currently being
negotiated by 135 governments. A deal
appears near, but uncertainty of how
much and where businesses will be
taxed is delaying some investment
plans, said James Zhan, director of
investment and enterprise at Unctad.
Businesses are also facing closer
scrutiny and outright rejection when
proposing to make investments in sec-
tors more governments view as essen-
tial to security or economic resilience.
China remained the largest investor
in the world, partly thanks to contin-
ued expansion of its Belt and Road
infrastructure project during the pan-
demic. But some European countries
are starting to block Chinese involve-
ment in their economies, drawing
closer to positions advocated by the US
Governments from the Baltic to the
ing to ban Chinese companies from
investing or contracting in their coun-
tries. Some governments are also
pushing companies to bring invest-
ment home, having concluded that it
is better to make some goods, such as
vital medical supplies, domestically
rather than rely on overseas providers.
Foreign multinationals continued to
invest heavily in China despite rising ten-
sions with the West, drawn by its “rising
purchasing power, well-developed infra-
structure and generally favourable
investment climate,” the report said.
While some multinationals might shift
production away from China into South-
East Asia because of rising labour costs
and efforts to improve the resilience of
their supply chains, many consider
China “an indispensable strategic mar-
ket,” the report said.
Meanwhile, developing world coun-
tries, which are still in the grips of the
pandemic, could lose out on new invest-
ment. Some developing countries saw a
smaller decline in foreign investment
than rich ones in 2020, but as wealthy
countries inoculate large portions of the
populations and reopen their econo-
mies, poor countries could struggle to
attract new investment.
That could hurt growth in the long
run, since transfers of technology and
know-how are especially important
for poor countries’ development.
While India was one of the few
economies to see a large rise in foreign
investment during 2020 as interna-
tional businesses rushed to beef up
their online offerings, for which India
is a major source of back-office sup-
port, Unctad expects inflows to fall this
year. It expects flows to Latin America
and Africa to be subdued for similar
reasons.
©2021 DOW JONES & COMPANY, INC
mendation of medical experts
who said holding the event
without fans was the least risky
option.
The announcement ends
months of speculation and
highlights Japan’s determina-
tion to push on with the Games
and salvage the multi-billion-
dollar extravaganza amid pub-
lic opposition and deep con-
cern about a resurgence in
infections.
The decision was widely
expected after some recent
comments by organizers and
as the government’s own med-
ical experts last week appeared
resigned to the event going
ahead with fans.
Japan has largely avoided
the kind of explosive coronavi-
rus outbreaks that have devas-
tated other countries, but the
vaccine roll-out was initially
slow and the medical system
pushed to the brink in some
places.
The limit for the Games,
scheduled to begin on July 23,
“will be set at 50% of venue
capacity, up to a maximum of
10,000 people”, organizers
said in a statement.
But the cheering will likely
be quelled as shouting will be
prohibited. Organizers also
said masks would be required
and spectators be requested to
travel directly to venues and
go straight home.
Numbers could be further
reduced after July 12, depend-
ing on whether “quasi emer-
gency” covid-19 measures, due
to expire the day before, are
Tokyo 2020 president Seiko
Hashimoto. AP
extended or due to any other
anti-infection measures in
force at the time, according to
organizers.
Spectators from overseas
have already been banned.
The national stadium, built for
the 1964 Tokyo Olympics and
due to host athletics and soc-
cer this time, would have held
68,000 fans but now will be at
a sliver of that.
However, TV deals, such as
that with NBCUniversal for 17
nights of U.S. primetime cov-
erage, will ensure the Games
are beamed around the world.
Organizers are still consid-
ering whether to allow alcohol
to be served in venues, Tokyo
2020 president Seiko Hashi-
moto said. Even as experts
voiced concern, Hashimoto
had previously said she was
eyeing allowing up to 10,000
fans.
Some of the country’s top
health experts on Friday said
banning spectators would be
the least risky option.
“I am concerned not just
about the increase in the num-
ber of people coming to watch
the Olympics itself but also
about the loosening of peo-
ple’s sense of urgency by host-
ing the Olympics with specta-
tors,” said Haruka Sakamoto, a
physician and researcher at
Keio University.

DELHI JAL BOARD, GOVT. OF NCT OF DELHI

OFFICE OF THE EXECUTIVE ENGINEER(SW) III
SECTOR-VII, R.K. PURAM, NEW DELHI-110022
“STOP CORONA; Wear Mask, Follow Physical Distancing, Maintain Hand Hygiene” Moderna plans to expand production
N.I.T. NO. 08 (2021-22) SW-III
S. Description Amount put to Date of release Last date/Time of receipt
Peter Loftus manufacturing at Moderna, has already brought in some of
No. tender, Tender of tender in of Tender Through feedback@livemint.com said the latest challenge is find- the steel tanks, white plastic
Fee E-procurement solution E-Procurement Solution
ing enough raw materials used drums, tubes and other equip-
1. Providing and Laying water line for Rs. 1,36,93,989/ 19.06.2021 12.07.2021

improvement of water supply at East and
West Mehram Nagar village in Cantonment
area under EE(SW)-III (Re-invited)
2. Providing and Laying water line for
improvement of water supply at Nangal
village in Cantonment area under EE(SW)-
III (Re-invited)
Further details in this regard can be seen at (https://govprocurement.delhi.gov.in)
ISSUED BY P.R.O. (WATER)
Advt. No. J.S.V. 129(2021-22)
Growth is
not just about digging in the
heels. It’s also about pivoting
in tough times.
Growth is...On.
Follow us:
mint.live livemint
M
Rs. 1000/- Tender I.D. No. At 2.00 P.M. oderna Inc. is adding
2021_DJB_204587_1 two new production
lines at the rebuilt
Rs. 1,18,15,179/ 19.06.2021 12.07.2021
Rs. 1000/- Tender I.D. No. At 2.00 P.M.
former Polaroid plant where it
2021_DJB_204587_2 manufactures its covid-19 vac-
cine, part of a push to prepare
for making booster shots and
(Naveen Kumar Khare) the future of the pandemic.
EXECUTIVE ENGINEER (SW) III
At a site brimming with new
steel production tanks and
heavy equipment, construction
workers in neon safety vests are
working to get one new line up
and running by fall and the
other by early 2022.
The additions will help Mod-
erna increase overall produc-
tion capacity by 50% at its plant
in the Boston suburb of Nor-
wood, company officials said.
Moderna and its manufac-
turing partners also are
expanding production capacity
outside the U.S., with a goal to
roughly triple the annual global
output of Covid-19 vaccine
doses to about 3 billion in 2022
from as many as 1 billion this
year.
“Our plan and our hope is
that, as soon as the U.S. has
enough doses, we’re allowed to
export so we can help as many
countries as we can around the
world,” Moderna chief execu-
tive Stéphane Bancel said.
The manufacturing expan-
sion shows that Moderna is
making a big bet on an endur-
ing covid-19 vaccine business
as health authorities prepare
for life after the pandemic lifts
but the virus remains.
Wall Street analysts say sales
of Moderna’s covid-19 vaccine
could stay strong for a couple of
years but then drop off.
The mean estimates of ana-
lysts surveyed by FactSet are
that Moderna’s covid-19 vac-
cine sales will top $17.1 billion
this year, dip slightly to $16.8
billion in 2022 and come in at
$7.4 billion in 2023. The flurry
of activity, at a site with a
soundtrack of heavy equip-
ment and walkie-talkies, is also
emblematic of Moderna’s dra-
matic transformation.
The decade-old startup had
live_mint livemint www.livemint.com no commercial products and
was struggling to persuade
many investors that it could
Moderna also has supply deals
with EU and Covax initiative to
provide doses to low- and
middle-income countries. AFP
make messenger RNA technol-
ogy work before the coronavi-
rus pandemic hit last year.
Now, it is a major biotechnol-
ogy industry player as a result
of the effective covid-19 vaccine
that it quickly developed last
year.
Moderna has a market capi-
talization of $81 billion, up from
about $7 billion before the pan-
demic. The company has taken
over its entire 10-story head-
quarters building about 15
miles north of Norwood, in
Cambridge, Mass., which Mod-
erna previously shared with
other tenants.
Also, it has opened offices in
other countries including
Switzerland, where Moderna
works with a contract manufac-
turer to make doses, plus a
back-office support hub in
Poland.
“ T h e
build has
been like
nothing I’ve ever experienced,
to go as fast as we did,” said Matt
Barrows, Moderna’s senior
director of manufacturing with
more than 20 years of experi-
ence in biotech. “The build was
the journey and continues to be
the journey,” Mr. Barrows said.
The expansion hasn’t been
without hiccups. Moderna’s
initial output was limited, as the
company scrambled to build
capacity and expertise.
Moderna recently cut sup-
plies to the UK, Canada and
other countries outside the US
because a contract manufac-
turer in Europe underesti-
mated how many workers it
needed to hire.
Additional setbacks could
keep Moderna from meeting its
production goals.
Scott Nickerson, head of US
in the production process,
especially plastic bags, tubes
and filters.
The latest expansion will
help Moderna boost its overall
supply of covid-19 vaccine
doses to the US and other coun-
tries, company officials said.
The company said earlier last
week it had agreed to provide
the US an additional 200 mil-
lion doses starting later this
year, on top of the 300 million
Moderna expects it will have
delivered for US use by the end
of July. Outside the US, Mod-
erna has supply deals with the
European Union and the inter-
national Covax initiative to pro-
vide doses to low- and middle-
income countries.
Mr. Bancel said the company
has received inquiries from
governments in Asia, Africa
and Latin America seeking sup-
plies of covid-19 vaccines.
The company expects the
additional output of doses to
include vaccines intended as
booster shots that might be
needed to prolong immunity
and better target new coronavi-
rus variants.
Some of the new supply may
also be lower-dose shots
intended
for young
children, if
clinical
data support their use.
After deciding to pursue a
covid-19 vaccine last year,
Moderna quickly made
changes to its original manu-
facturing plant, the former
Polaroid plant located in an
industrial park south of Boston
that the biotech originally
opened in 2018.
The company ripped apart
and rebuilt a portion of the
plant and built an addition to
support large-scale manufac-
turing of the covid-19 vaccine,
according to Mr. Nickerson.
That work yielded the three
main production lines that
have churned out most of the
more than 200 million doses
Moderna has delivered for use
in the US since regulators
authorized its use in December.
For the expansion, Moderna
ment needed for production,
waiting for finishing touches
and validation.
The company currently
makes between 40 million to
50 million doses a month in the
US, most of which is made at
the Norwood plant, but some of
which is made at a contractor’s
plant in New Hampshire. The
company declined to break
down the production or specify
the expected monthly dose
output after the expansion.
Across a parking lot from the
plant, Moderna has converted
a former auto-mechanic school
into technology-development
laboratories where workers in
white lab coats and safety gog-
gles hone manufacturing tech-
niques that can be transferred
to the production sites.
Down a path through the
woods is an office building, for-
merly used by employee-bene-
fits consultant Mercer, which
Moderna is now converting
into quality-control labs and a
site for manufacturing doses
for clinical testing.
Moderna has been on a hir-
ing spree. Last year, the com-
pany added nearly 500
employees, boosting its work-
force to 1,300. Mr. Nickerson
said it is “in the middle of hiring
that many more all over again.”
The new hires are a mix of
people with experience in bio-
tech manufacturing as well as
fresh college graduates with
engineering and chemistry
degrees from nearby universi-
ties including Northeastern
University and Worcester Poly-
technic Institute, Mr. Barrows
said. Also to support the expan-
sion, Moderna is firming up
relationships with material
vendors and manufacturing
partners, company officials
said. The company has in
recent weeks signed new or
expanded contracts with man-
ufacturers including Lonza
Ltd. and Samsung Biologics
Co., and raw-material suppliers
including Aldevron LLC.
which supplies the starter
genetic material template for
vaccine production.
©2021 DOW JONES & COMPANY, INC
LIVEMINT.COM NEWS WRAP TUESDAY, 22 JUNE 2021
MUMBAI 09

TWEETS OF THE DAY P. Chidambaram P V Sindhu Narendra Modi

Dalai Lama @PChidambaram_IN @Pvsindhu1 @narendramodi
@DalaiLama Congress Party’s position We seek your support Today’s record-breaking vac-
If we want to see a more that full Statehood must be as we prepare and cination numbers are glad-
peaceful world, we have restored to J&K should clear head for the biggest dening. The vaccine remains
to learn to collaborate. any doubt or ambiguity. event, Olympics! We our strongest weapon to fight
Young people shouldn’t What was made under the will do everything COVID-19. Congratulations to
follow previous pat- Constitution cannot be possible to make our those who got vaccinated and
terns of behaviour. unmade by an Act. nation proud. kudos to front-line warriors.

RHF sets up panel to TRULY GLOBAL Airtel , Tata Group

speed up resolution collaborate for 5G

R T
eliance Home Finance (RHF), an Anil elecom major Bharti Airtel Ltd and Tata
Ambani-promoted firm, on Monday said it group on Monday announced a strategic
has appointed a panel for taking forward partnership for implementing 5G
the resolution process of the debt-laden network solutions in India.
mortgage company. A group of lenders led by Airtel will pilot and deploy this indigenous
Bank of Baroda has under the inter-creditor solution as part of its 5G roll-out plan in the
agreement (ICA) issued a letter of intent dated 19 country starting January 2022, as per the
June in favour of Authum Investment and guidelines formulated by the Indian
Infrastructure Ltd as it has submitted the government.
highest bid for taking over RHF. Authum had “We are delighted to join forces with the
submitted a bid of ₹2,911 crore (which includes Tata group to make India a global hub for
₹24 crore as deferred interest) to financial 5G and allied technologies. With its world-
creditors subject to the terms and conditions of class technology ecosystem and talent pool,
the bid document which has been approved by India is well positioned to build cutting edge
the lenders at their meeting held on 19 June, solutions and applications for the world. This
RHF said in a BSE filing. The RHF board at its will also provide a massive boost to India
meeting on Monday took note of the resolution becoming an innovation and manufacturing
plan approved by the lenders forming part of the destination,” said Gopal Vittal, managing
ICA under the Reserve Bank of India’s director and chief executive (India and South
Prudential Framework for Resolution of Asia), Bharti Airtel. KALPANA PATHAK
Stressed Assets directions dated 7 June 2019. PTI

People perform yoga at the Times Square in New York on International Yoga Day. PTI

SAT allows PNB Housing to The auto major noted that the prices of steel and
The Delhi HC’s vacation bench will pass an order
on 9 July.

FB, WhatsApp seek

ISTOCK
hold EGM vote on Carlyle deal various precious metals have gone up.

Maruti Suzuki to
MINT

stay on CCI notice hike car prices in Q2

T
he country’s largest carmaker Maruti

F
acebook and WhatsApp on Monday urged
the Delhi high court to stay the
Competition Commission of India (CCI)
notice asking them to furnish certain
information in relation to a probe ordered by it
into the instant messaging app’s new privacy
policy. A vacation bench said it will pass an
order on the application. During the hearing the
Suzuki India Ltd (MSIL) on Monday said it
The results of vote must be kept in a sealed cover; final hearing on the matter on 5 July will increase prices of its entire product
portfolio in the second quarter of the current
fiscal due to rise in prices of various essential
Gopika Gopakumar decision to review the proposed preferential issue holders equitably, the proxy adviser had observed. commodities, including steel.
gopika.g@livemint.com by PNB Housing to a group of investors, including On 31 May, a clutch of investors led by Carlyle The auto major noted that the price of steel
MUMBAI former HDFC Bank managing director and chief Group announced an investment of ₹4,000 crore in and various precious metals has gone up
executive officer Aditya Puri and PE firms General PNB Housing. Carlyle Group Inc. Pluto Investments considerably prompting the company to pass on

bench said since it was a vacation bench, it did
not want to delve into the merits of the matter
even as the main petitions are pending before a
bench headed by the chief justice. “We will pass
an order. The matter will be listed on 9 July,” the
bench said. The case relates to the appeals of
Facebook and WhatsApp against a single-judge
order dismissing their pleas against the probe
CCI ordered into the instant messaging app’s
new privacy policy. The high court had earlier
issued notices on the appeals and asked the
Centre to respond to it. In their fresh
applications filed in the pending appeals,
Facebook and WhatsApp sought a stay on the
CCI’s 4 June notice asking them to furnish
certain information for the purpose of inquiry
conducted by it. PTI
T
he Securities Appellate Tribunal (SAT)
on Monday gave its nod to PNB Housing
Finance to go ahead with its extraordi-
nary general meeting (EGM) scheduled
for Tuesday, which will allow the mort-
gage financier to conduct the voting process for its
₹4,000 crore deal with investors led by private
equity firm Carlyle.
The tribunal, however, said the results of the
vote must not be announced but kept in a sealed
cover till further orders are passed. The lender was
also directed to issue directions to the National
Securities Depository Limited (NSDL) regarding
the protocol for the results. The matter will come
up for a final hearing on 5 July. The SAT order was
passed on an appeal filed by PNB Housing against
a Securities and Exchange Board of India (Sebi)
Atlantic and Ares SSG. S.a.r.l., an affiliated entity of Carlyle Asia Partners IV, some of the impact to customers. “The prices of
Sebi had said the valuation of shares was “ultra and Carlyle Asia Partners V had agreed to invest up steel and precious metals like rhodium and
vires of the articles to ₹3,185 crore palladium have gone up substantially. In April
of association” and through a preferen- we passed on a part of the increased input costs
the issue should not The PNB Housing filed an appeal tial allotment of to consumers thinking that the prices of these
be acted upon until against a Sebi decision to review the shares at a price of essential commodities will come down
the firm receives an
independent valuer proposed preferential issue by the ₹390 apiece. Some
existing sharehold-
eventually. But that has not happened and as a
last resort we are doing it to safeguard the
to arrive at the valu- lender to a group of investors ers, including funds company’s financial health,” MSIL executive
ation of the shares. managed by Ares SSG director (sales and marketing) Shashank
The Sebi order and General Atlantic, Srivastava said. PTI
came after a proxy adviser, Stakeholders Empow- are also taking part in the capital raising round. Salis-
erment Services (SES), led by former Sebi executive bury Investments Pvt. Ltd, the family investment
director J.N. Gupta, said the proposed deal was vehicle of Puri, who is also a senior adviser to Carlyle
“unfair and abusive” to minority shareholders of in Asia, would invest ₹25 crore. Puri is expected to be
PNB Housing. Instead, the firm should have raised nominated to the PNB Housing Finance board as a
Auto parts makers
capital through a rights issue, treating all share- Carlyle nominee director in due course.
may recover in Q2

D
omestic auto parts manufacturers might
Amarnath Yatra witness a swift recovery in demand in the
E-grocery used by 23 million: Redseer second quarter once lockdowns are lifted
cancelled again in most states in the last week of June. The
recovery is also expected to compensate for the
segment has almost doubled from 2019 loss of revenue in the first quarter due to the

I
n the wake of the covid-19 pandemic, the
Jammu and Kashmir administration has
decided that the annual Amarnath Yatra will
be kept symbolic, lieutenant governor Manoj
Sinha said on Monday. The 56-day yatra to the
3,880-metre-high Himalayan cave shrine was
proposed to start from the twin routes of
Pahalgam and Baltal on 28 June and culminate
on 22 August. The pilgrimage was cancelled last
year too due to the pandemic. Sinha also
directed officials to ensure devotees can
virtually attend the morning and evening aartis
(prayers) at the shrine. The LG said that at the
shrine, all rituals shall be performed as per past
practice. “It’s important to save people’s lives.
The active user base for the online grocery
segment has nearly doubled from 2019. ISTOCK
levels of 12 million. Total active shoppers
on e-commerce platforms touched 110
million in 2020, compared to 90 million in
2019. “We have seen that while the sector
retained almost 10 million users, it
onboarded 13 million new households.
This led to a 2x growth. With factors like
doorstep contactless delivery, easy
transactions, and with these platforms
maintaining quality and hygiene, users
preferred it for convenience and safety
purposes. But what makes this space
interesting is how the segment is set to
grow till 2025 especially after the covid
impact and what models will drive this
The Nomura India Business Resumption Index
picked up to 81.3 for the week ending 20 June.
Nomura red flags
second wave of covid , according to ratings firm
India Ratings and Research. The firm also
expects a bounceback in aftermarket demand
once the lockdowns are eased. But if lockdowns
and restrictions remain in force for longer, there
could be a downside risk to revenue growth
estimate of 18-20% year-on-year for FY22. “The
focus on cost-cutting measures and better cash
flow generation over H2FY21...have resulted in a
better liquidity profile for sector companies vs a
year-ago levels. Ind-Ra does not foresee any
AFP major negative rating actions unless there is a
material stress to the credit profiles of the rated
entities,” the firm stated. STAFF WRITER

W 3rd covid wave risk

So, it is not advisable to hold and conduct this
year’s pilgrimage in the larger public interest.
Shri Amarnathji Shrine Board (SASB) is aware of
and respects the sentiments of millions of
devotees, and to keep the sentiments alive, the
board shall continue the live telecast of morning
and evening aarti from the holy cave shrine,”
ith covid-induced lockdowns
providing necessary tailwinds to
the online grocery industry, total
active users for the segment have touched
close to 23 million users, according to
estimates from management consultancy
Redseer. The active user base for the
growth,” said Redseer.
Consumer internet transactions showed
a V-shaped recovery, clocking $80 billion
IIFL Home Finance
A
in gross transaction value (GTV) in s India recovers from the disruptions
December last year, said Redseer. Total
GTV for consumer internet businesses was
caused during the second wave of covid-19
infections, economists are wary of another files IPO papers
$75 billion in January 2020. STAFF WRITER impending wave. According to Nomura

Sinha, who is also the board’s chairman, said. PTI economists, a third pandemic wave over the next
few months is a key risk that bears monitoring.
However, relaxed lockdown measures and
moderating cases have expectedly triggered a
Duflo, Rajan to be part of Tamil Nadu Economic Council snapback in mobility currently, said Sonal Varma
and Aurodeep Nandi, economists, Nomura. “In
our base case, we expect strong global growth,
I
IFL Home Finance Ltd (IIFLHFL) on Monday
filed a draft shelf prospectus with the exchanges
to raise ₹5,000 crore through a public issue of
non-convertible debentures (NCDs). The face
value of each secured and unsecured NCD will be
₹1,000 each and will be issued in one or more
tranches. The company has filed the prospectus

A
n economic advisory council to the chief minister would be
constituted with leading experts including Nobel laureate Esther
Duflo, Tamil Nadu governor Banwarilal Purohit said in Chennai on
Monday in his customary address to the assembly. The council is to prepare a
roadmap for “rapid” and inclusive economic growth of the state, Purohit said
in his first address to the House, which also marks the commencement of the
first session after the formation of the DMK government last month. “In
recent years, we have seen a slowdown in Tamil Nadu’s economic growth
rate. This government will make all out efforts to reverse this trend and usher
in a period of rapid economic growth,” he said, announcing the setting up of
the panel. Besides Duflo of the Massachusetts Institute of Technology,
former Reserve Bank of India governor Raghuram Rajan, former chief
economic adviser Arvind Subramanian, development economist Jean Dreze
and former Union finance secretary S. Narayan would be part of the
economic advisory council, he said. PTI
ongoing vaccinations, easy financial conditions
and front-loaded fiscal activism to support GDP
growth of 9.8% year-on-year in 2021 (10.4% in
FY22) and 7.7% in 2022,” Varma and Nandi said in
a note. The Nomura India Business Resumption
Index (NIBRI), which tracks high-frequency data,
picked up to 81.3 for the week ended 20 June, up
by 6.4 percentage points from a week earlier and
21.1 percentage points from May-end. The labour
participation rate inched up to 40.5 from 39.8 last
week, even as the unemployment rate rose by 0.7
percentage points to 9.4%. However, power
demand contracted by 2.2% week-on-week after
rising by a weekly average of 5.8% over three
Former RBI governor Raghuram Rajan. consecutive weeks. STAFF WRITER
with both BSE and NSE. The housing finance
company will use the proceeds for onward lending,
financing, repayment of existing borrowings and
general corporate purposes. IIFLHFL’s main focus
is to provide loans to the first-time homebuyers in
the economically weaker section and lower-
income segments in the suburbs of tier-I, tier-II
and tier-III cities. Salaried and self-employed
customers account for 44.37% and 55.63% of its
assets under management(AUM) as of 31 March
2021. AUM of the company has increased from
₹9,769.32 crore as on 31 March 2017 to ₹20,693.69
crore as on 31 March 2021, at a compound annual
growth rate of 20.64%.
ASHWIN RAMARATHINAM
10 TUESDAY, 22 JUNE 2021
MUMBAI LONG STORY LIVEMINT.COM

REPORTAGE | TALKING POINTS | IDEAS | INSIGHT | THE BOTTOMLINE

STARTUP CRAZE GOES

TO SMALL-TOWN INDIA
With investments that could be as low as ₹5 lakh, non-metro investors are piling on to the startup bandwagon.

Job opportunities created by startups have nearly doubled between 2018-19 and 2020-21. The number of jobs created by startups in 2020-21 stood at 180,000. BLOOMBERG

Ashish Rukhaiyar small-town India, who have suddenly
feedback@livemint.com started looking at startups as a full-fledged
MUMBAI asset class. For these new-age investors
based in tier-2 and tier-3 cities such as Raj-
through online platforms is fairly simple.
One needs to sign up on the platform,
which requires a KYC (Know Your Cus-
tomer) registration. The registered inves-
tion of Industry and Internal Trade
mint
SHORT (DPIIT) shows that all the states and Union
STORY territories have at least one startup which
is recognized by the department. The total
cated form of investment which requires
extensive due diligence because there are
quite a few risks are involved. “There are
a lot of instances when startup invest-

S
eoni, a town of roughly 100,000 kot, Siliguri and Surat, early-stage seed tors get access to the pitch decks of a slew number of such ventures is pegged at ments are wrongly sold as a wealth prod-
people located on the national funding is a lucrative, albeit risky, new of startups that are looking to raise funds WHAT nearly 50,000. uct,” Mehta said. “One shouldn’t invest in
highway 44 between Nagpur avenue. It offers a potential toehold into through the platform. The platforms typi- More than 16,000 new startups were a startup unless he or she understands the
and Jabalpur, once formed the India’s booming new economy sectors. cally charge a membership fee while facil- According to business registered in 2020-21. According to avail- venture or the product. More often than
backdrop for the Mowgli tales in The ticket size is often small—the aver- itating the investment process. intelligence platform Tracxn, able data, Maharashtra has the maximum not, investors invest purely based on the
Rudyard Kipling’s The Jungle Book. It was age investment per startup could be as low LetsVenture has a portfolio value of nearly 3,700 startups were number of startups at 9,335, followed by pitch deck or the advice of the so-called
spelt Seonee during colonial times. as ₹5 lakh. Relatively younger startups like over $2 billion, featuring more than 350 launched from tier-2 and tier-3 Karnataka (6,556), Delhi (6,158), Uttar Pra- incubator or accelerator,” he said further.
Anurag Maloo has a warehousing and Explara, Yulu, Dailyninja, Confirmtkt or startups. “There are thriving business cities in 2020, which cumulatively desh (4,414), Gujarat (3,049) and Haryana
hotel business in modern-day Seoni in PeeSafe are the main targets. Aiding this communities in most non-metro towns raised $3 billion from investors (2,768). Startups have also created as many TREND WITH STAYING POWER
Madhya Pradesh. He had been on the
lookout for new investment options when
he first heard about the world of startups
phenomenon is the parallel rise of plat-
forms which aim to make startup invest-
ing simpler.
and these businessmen understand busi-
ness and how a business can be created,”
said Mohan. AND
as 180,000 jobs in 2020-21, more than 12%
higher than the previous fiscal’s 160,000
jobs. Job opportunities created by start-
T he democratization of startup invest-
ing has been underway for quite
some time now with more investors join-
five years ago. Until then, the riskiest part “While they like to invest in businesses, ups have nearly doubled between 2018-19 ing the bandwagon over the years. Indus-
of his investment pie would be the money SEED STAGE INVESTING they do not (always) have proper access. Startups, especially the early- and 2020-21. try executives have agreed unanimously
stage ones, had been deprived of
he pumped into the stock market.
“It all started in 2016 when I was (first) A nup Agarwal has a diversified busi-
ness in Raipur, the capital city of
More importantly, there is a lot of capital
in such towns that can be channelized capital for long and it is a positive
sign that new investors are
CALL FOR CAUTION
that the trend is here to stay and will be
sustained over the long term. They cite
introduced to the potential investment Chhattisgarh. The city is known for its
opportunities in startups. Since then, I steel industry, but Agarwal has interests in
have only increased my exposure in the various other sectors, including construc-
towards proper investment avenues,” she
added.
A Nasscom report from January 2021
looking at them as a lucrative
investment opportunity
S ome industry executives say that start- some of the recent wealth reports that
ups, especially the early-stage ones, highlight the fact that the interiors of the
had been deprived of capital for long and country are home to a sizeable number of
segment,” said Maloo who has invested in tion, education and power. identified early-stage investment in start- it is a positive sign that new investors are affluent Indians who hold a huge amount
more than 20 startups. The 45-year-old “I have invested in as many as 50 start- ups as one of the key priority areas looking at them as a lucrative investment of untapped wealth.
has even made successful exits from half- ups ever since I started investing. I have wherein there is room for growth and BUT opportunity. But they also warn that start- “…startup investments are gradually
a-dozen of them. The exits have given him also made one successful exit from (pay- improvement. It could also end up ups do not share the same characteristics gaining a foothold in the investment spec-
an average return of 2.5 times after a hold- ment services firm) BharatPe. I plan to strengthening the overall startup ecosys- Experts also warn that startups of other asset classes like stocks, mutual trum of the wealthy,” stated the recently
ing period of 2-3 years. only increase my investments,” said Agar- tem. don’t share the same funds, gold or real estate. If a startup gets released Hurun India Wealth Report
Almost 300 kilometres away, in Maha- wal. “Seed-stage investments in India are characteristics as stocks, mutual a bad set of investors, then, it could even 2020, in which nearly 12% of the respon-
rashtra’s Amravati, chartered accountant The startup sector has gained sheen in less than 10% of the total investment that funds, gold or real estate. A bad ruin the venture, they say. dents mentioned startups in their wealth
Mayur Zanwar, 40, launched his own the backdrop of increased volatility in is raised each year. It has stagnated in the set of investors could even ruin “Historically, early-stage startups have allocation preference.
startup—TruScholar—in 2019. The other asset classes, such as equities and range of $400-500 million per annum,” the venture been capital-deprived in our country as Public equity and real estate were the
underlying product is based on block- gold. In the current calendar year, around stated the report. “Angel investors are a the pace of capital availability in India did only two asset classes that saw a mention
chain technology, a protocol for recording 15 startups have already attained unicorn critical part of the ecosystem flywheel, for not grow at the same pace that the startup by a higher number of respondents.
and storing information that is impervious status in India—a huge jump from the 11 they provide risk capital, experience, and a “marked increase in startups beyond ecosystem grew. India has a genuine Respondents expect “real estate, alterna-
to hackers. new unicorns of 2020. expertise for very early-stage founders. (the) established startup hubs” like Benga- startup story,” said tive investment funds
Zanwar also decided Startups with a valua- The current structure…is heavily tilted luru, Delhi, Mumbai, Pune, Chennai and Manish Kumar, founder and startups… to witness
to put money in other tion of over $1 billion are towards institutional investors. Innova- Hyderabad. of Grex, a digital trans- a positive movement in
startups. Till date, he referred to as unicorn tive measures are needed to encourage Cities like Ahmedabad, Jaipur, Kolkata, action platform for the next three years,”
has invested in nearly startups. the participation of individual investors,” Kochi, Thiruvananthapuram, Kanpur and startups. added the report.
20 ventures. He liqui- Naturally, platforms it added. Indore are among the new crop of cities “While an increase in Interestingly, newer
dated all of his real that facilitate invest- Industry executives say that the major that are emerging as hubs. “With contin- the number of potential forms of fund-raising
estate holdings last year ment in startups have roadblock in making non-metro investors ued policy support, expansion of local investors is a good sign are also gaining promi-
to increase his bets on seen a significant jump join the startup growth story is the aware- communities, and a shift to remote work, for startups, these ven- nence across the world,
the startup segment and in client registrations, ness levels among them. Historically, such we can expect more success stories, tures (also) need sea- which supports the
aims to invest in as particularly from far- investors have looked at traditional asset including unicorns, from across the coun- soned investors or one belief that the degree of
many as 30 early-stage I look at the financial flung towns, with some classes like real estate and gold as the pre- try,” said the Nasscom report. who understands the There are thriving democratization will
ventures by the end of pegging the share of ferred form of investment. According to data from Tracxn, a busi- nuances of start-up only increase. The US
2021. summary, the problem- such small-town inves- Incidentally, the covid-19 pandemic has ness intelligence platform, nearly 3,700 investing. This is really business communities S e c u r i t i e s and
“I am bullish on tech- solving solution and tors at around 30% of been a blessing in disguise for the segment startups were launched from tier-2 and important as, at times, in most non-metro Exchange Commission
nology…not just pure- the overall client base. because the nationwide lockdown of tier-3 cities in 2020, which cumulatively the success or failure of (SEC), for example,
play technology, but growth projections. Bengaluru-based 2020 and also the more recent regional raised as much as $3 billion from inves- a venture could depend towns and they recently increased the
tech-based solutions in LetsVenture, which tors. In the current year until May, a total
sectors ranging from Then, I invest. facilitates investments
restrictions in the aftermath of the second
wave of infections made people aware of of 120 startups have been founded in such
on its investors. If there
is a frequent churn in understand business... annual maximum limit
for funds that can be
health, education and Mayur Zanwar in growth-stage start- the potential impact of digital disruption towns. Cumulatively, these startups have the list of investors of a Shanti Mohan raised via crowd fund-
media to finance. I look Co-founder of TruScholar ups, has over 6,700 reg- across various sectors. raised as much as $2.25 billion, showing particular startup, it Co-founder and CEO of LetsVenture ing to $5 million from $1
at the financial sum- istered investors on the that the per-deal average has increased in could be detrimental to million.
mary, the founder team, the problem- platform. “Since last year, we have been GOING BEYOND THE HUBS 2021. Among sectors, the consumer tech- the venture’s long-term growth poten- “These developments only strengthen
solving solution that the firm provides and onboarding new investors at a pace that is
the growth projections. Then, I invest,” nearly 2.5 times higher than our historical
said Zanwar. average,” said Shanti Mohan, co-founder
G etting new investors on board from
non-metro towns has also been aided
by the fact that the startup landscape itself
nology vertical saw the highest number of
new ventures in the last couple of years. It
was followed by fintech, food/agriculture
tial,” added Kumar. the theory that new investment behav-
Sanjay Mehta, founder and partner of iours are secular permanent trends that
100X.VC, a platform for early-stage will only increase in quantum with the
Maloo and Zanwar are just two among and chief executive officer of LetsVenture. is undergoing change. The Nasscom and travel/hospitality. startup investing, agreed. He says that passage of time,” said Grex’s Manish
thousands of such individuals across The process of investing in a startup report highlighted the fact that 2020 saw Data from the Department for Promo- putting money in a startup is a sophisti- Kumar.
LIVEMINT.COM MINT MONEY TUESDAY, 22 JUNE 2021
MUMBAI 11

When should you go for a super POWER

POINT

top-up health insurance policy? A M A R PA L C H A D H A

Respond to this column at

mintmoney@livemint.com

INCOME EARNED VIA

Super top-up health insurance policies help meet medical expenses above the deducible under a regular policy
CRYPTOCURRENCY
Navneet Dubey
navneet.d@livemint.com
flexibility to choose the deductible
option according to their sum
insured. Moreover, they can also rejig
MUST BE DISCLOSED

T
he past year has made peo- the sum insured according to their

ple understand how medi-
cal emergencies can come
up without warning. While
a regular health insurance
plan is always beneficial, super
top-up health plans offer an added
layer of security to the insured.
Indraneel Chatterjee, co-founder,
RenewBuy, said, “If one’s health
insurance is not sufficient to cover
the escalating medical costs, a super
top-up health plan is an economical
way to ensure that he or she gets cov-
ered. Once the deductible is met, a
super top-up plan pays the complete
cost of hospitalization charges.”
In other words, the super top-up
plan becomes active for subsequent
claims when the total admissible
claims exceed the deductible level.
Deductible is a set amount that you
have to pay towards meeting your
medical expenses before your health
policy kicks in or begins to pay for
medical-related services.
How it works: A super top-up
plan is a type of health insurance
cover that provides the insured with
compensation for cumulative medi-
cal expenses within a policy term
when it exceeds the deductible. Also,
it doesn’t matter whether the regular
health policy or the patients them-
selves have paid for medical expenses
up to the deductible.
Sanjiv Bajaj, joint chairman and
managing director, Bajaj Capital, said
that adding a super top-up to an exist-
ing cover lowers the cost of insur-
ance, and yet provides high coverage.
“For instance, if the deductible
opted by the policyholder is ₹4 lakh
and the medical bill is ₹10 lakh, then
the super top-up pays ₹6 lakh to the
hospital (subject to the maximum
sum insured limit) and rest is either
paid by his existing health policy or
met by the insured from his/her
C
requirement during renewal. In addi- ryptocurrencies have been in the spotlight in the recent
tion, the premium paid towards the past owing to factors such as the dramatic rise and fall of pri-
super top-up health plan, too, quali- ces, views of certain high-net-worth individuals and actions
fies for availing tax benefits under taken by various governments. Lured by the prospect of high
Section 80D of the Income Tax Act. returns, several Indians have invested in cryptocurrencies such as
When should you opt for super bitcoin, ethereum and dogecoin. Such investors must be careful
top-up insurance: Ankit Agrawal, while preparing their tax return. They must make appropriate dis-
chief executive officer and closure of the income earned from the sale of cryptocurrencies.
co-founder, InsuranceDekho.com, Let’s look at some nuances of taxation of income earned from
suggests that people should buy a transacting in cryptocurrencies.
super top-up plan if they are senior Neither the Income Tax Act, 1961, nor the Central Board of
citizens or parents, since it offers Direct Taxes stipulates any specific tax treatment for income
greater coverage at an affordable pre- earned from investments in cryptocurrencies. Under the Act,
mium. If they are dissatisfied with the income earned from the sale of cryptocurrency can be taxed either
coverage of their existing health as income from capital gains, or as profits/gains from business or
insurance policy, then a super top-up profession. The classification of income and its computation
plan is a good option. Besides, if they mechanism are determined by whether an individual holds cryp-
want to upgrade their health insur- tocurrency as an investment or stock-in-trade.
Added advantage ance plan provided by their employer Capital gains: Cryptocurrency in its generic meaning gives the
Super top-up health plans are an economical way to ensure that an extra layer of security is added to the
they can go for a super top-up plan. holder exclusive rights to access/spend and may likely be qualified
existing regular health insurance policy cover. “Considering the rising medical as a financial asset, as the Indian regulatory framework does not
expenses, having just a corporate consider them legal tender. The Act defines capital asset broadly
Regular health insurance policy Super top-up health insurance plan insurance policy is not adequate. to include any kind of asset, interest or rights in a property, unless
With a super top-up policy, the specifically excluded. Cryptocurrency is not specifically excluded
insured can avail cover that he/she from the definition of capital asset.
Mr Verma has a base health insurance Mr Verma buys a super top-up policy
policy with a sum insured of ₹5 lakh of ₹10 lakh with ₹5 lakh as deductible might not get under a corporate The difference between sale consideration, cost of acquisition
health insurance policy. For instance, and expenses incurred on transfer of cryptocurrencies is consid-
CASE 1 The health insurance policy will The super top-up policy will cover him for the AYUSH treatment, critical illnesses, ered as capital gains. The cost of acquisition is the cost of purchase
One claim of cover him for ₹5 lakh remaining ₹7 lakh as it exceeds the deductible etc,” said Agrawal. of such cryptocurrency plus the broker’s commission or wire
₹12 lakh arises Mint takeaway: Different health transfer fee . Since cryptocurrencies are held in an electronic wal-
insurance companies offer different let, in case of purchase of cryptocurrency at various points of time
CASE 2 A health insurance plan will cover him for A super top-up policy will cover him for features and benefits with their and cost, it becomes fungible, which leads to issues with identify-
Two claims of ₹4 lakh for the first claim and ₹1 lakh for the remaining ₹3 lakh health insurance policies, be it a ing which tranche of purchase is being sold and the cost of acquisi-
₹4 lakh each arise the second claim
super top-up plan or a regular health tion. In such a case, the taxpayer must adopt a first-in-first-out
CASE 3 insurance policy. But both of them method to determine the cost of acquisition.
A health insurance plan will cover him for A super top-up policy will cover him for the provide financial backup in case of a The capital gains are further classified into short-term or long-
One claim of ₹5 lakh from the first claim and the remaining ₹2 lakh from the first claim and for health emergency. term gain depending on the period for
₹7 lakh and another policy cover ceases after that ₹4 lakh for the second claim
of ₹4 lakh arise
“When choosing between them, it Income from which such an asset is held. Gains
is suggested that you use a health cryptocurrency earned on cryptocurrency held for less
PARAS JAIN/MINT
insurance premium calculator to than three years from the date of acqui-
pocket,” said Bajaj. claims get settled (refer to table). Rakesh Goyal, director, Probus compare and analyze their premiums sale can be sition are considered short-term gains
Difference between super Benefits of a super top-up plan: Insurance, said, “The super top-up in comparison with the benefits they taxed as capital and taxed as per applicable slab rates
top-up and regular health policy: Like a regular health policy, a super plan covers all hospitalization bills offer. Also, thoroughly read the policy gains income (top tax rate 42.74%), while those held
Both super top-up health insurance top-up plan also covers the insured above the deductible limit, unlike document before and after policy or as profits for more than three years are consid-
plans and regular health insurance for hospitalization required due to basic top-up plans that cover only sin- purchase. Only then will you be able ered as long-term. The gains are subject
policy offer much-needed financial covid-19. Apart from this, a super gle claims above deductible limit.” to make the right choice of plan for to a beneficial tax regime (top tax rate
protection in case of a medical emer- top-up policy covers you for critical Besides, when buying a super yourself and your family members,” 28.49%). The taxpayer is also eligible for indexation benefit on the
gency. The difference lies in how illnesses as well. top-up plan, the policy buyer gets the said Agrawal. cost of acquisition. In case one cryptocurrency is bartered with
another, each swap shall be considered a transaction and be subject
to capital gains tax. The taxpayer shall be required to report and pay
taxes on each such disposal. Considering the recent fall in crypto-

Invest with care in infra funds as cyclicality can wipe out gains currency prices, some investors would also have incurred capital
loss while selling cryptocurrency. These losses can be set-off
against gains from sale of other assets, subject to existing rules.
Income from business or profession:Taxpayers who specu-
Abhinav Kaul GDP growth. two to three years. It is impor- through systematic investment late on short-term price movements, or who hold the cryptocur-
abhinav.kaul@livemint.com “We feel the cyclical sectors Volatile gains tant to not only evaluate the plans (SIPs), which can be sup- rency as stock-in-trade may be considered as traders. Whether a
are likely to do well over the Infra funds gained due to recovery in cyclical sectors such as fundamental factors driving plemented with lump sum person qualifies as trader or investor depends on aspects including
engineering and construction, cement, metals, and oil and gas,

T
hanks to the strong
recovery in cyclical sec-
tors, infrastructure funds
delivered an average return of
more than 70% over the past
year, making them the second-
best performing sectoral funds
during the period.
Moreover, these funds have
risen by an average of 30%
since the start of the year. Infra
funds gained due to recovery in
cyclical sectors such as engi-
neering and construction,
cement, metals, and oil and gas,
post the first wave of covid-19.
According to experts, with a
markedly improved environ-
ment for creating infrastruc-
ture, both public and private,
the infrastructure segment of
the economy, and companies
related to it, have the potential
to grow faster than the real
next three-five years as the eco-
nomic growth and earnings
growth improve and become
more broad-based. The gov-
ernment capex is improving,
and the Union Budget gave a
boost to the public sector
capex. Residential investments
in real estate are improving
after a gap of five to seven years.
We are seeing early signs of
pick-up in the private sector
capex also. We believe these
sectors can perform very well
over the next three to five
years,” said George Heber
Joseph, chief investment offi-
cer and chief executive officer,
ITI Mutual Fund.
Some policy measures that
have boosted the infra sector’s
performance over the past year
are the National Infrastructure
Pipeline (NIP), where the gov-
post the first wave of covid-19.
Technology
Infrastructure
Banking
Pharma
*year-to-date Data as on 18 June
ernment is planning to invest
₹111 trillion between FY20 and
FY25, production-linked
incentive (PLI) scheme, the
Reserve Bank of India’s low-in-
terest rate regime and lower
corporate tax rates.
So, can infrastructure funds
continue their performance
going ahead?
According to experts,
despite the strong one-year
the future growth of different investments at times of draw- frequency in buying and selling, period of holding, and intent of
businesses participating in this downs in the market. This investment. Where a taxpayer qualifies as a trader, any income
Returns (in %)
1-year 3-year 5-year 10-year
segment but to also evaluate strategy creates twin benefits of earned from sale of cryptocurrency shall be taxed as income from
the valuations for the same,” higher allocation to equity at business or profession. Taxpayers should also evaluate whether the
104.21 28.07 22.96 19.22
said Amit Nigam, fund man- better cost of acquisition,” said income shall be considered as speculative income or not. Whether
72.32 10.39 12.29 9.75 ager, Invesco Mutual Fund. Nigam. the income is considered speculative or not will depend on
However, According to whether the cryptocurrency is considered a commodity and is
62.47 7.2 11.95 8.69
investors should Infra funds fall experts, as sec- periodically or ultimately settled otherwise than by way of actual
50.94 24.57 13.65 16.44 keep in mind that steeply during toral funds are delivery or transfer of such commodity.
investments in downturns due to riskier than diver- Return disclosures: Taxpayers whose income exceeds ₹50
Source: ValueResearch
such funds do higher earnings sified funds, the lakh in a year are required to report their assets and liabilities in
PARAS JAIN/MINT
have the potential allocation should Schedule for Assets and Liabilities along with cost of acquisition.
volatility and
performance, the BSE Infra to earn superior not be large in Since cryptocurrencies are also regarded as assets, taxpayers shall
index is still below its January returns, but are higher leverage of investors’ total include cryptocurrencies in the said Schedule.
2018 peak. Moreover, the index usually associated cyclical sectors equity portfolio. Additionally, taxpayers who qualify as resident and ordinary res-
(on a historic basis) is trading at with higher vola- “While lever- idents are required to disclose overseas income and assets in the
valuation multiples that are at tility. age is not very tax return. Considering the tax and penal consequences under the
almost 50% discount to that of The two key reasons for the high currently, earnings vola- Act and the Black Money (Undisclosed Foreign Income and Assets)
Sensex both on the price to sharp fall of infra funds during tility, particularly in sectors and Imposition of Tax Act, 2015, it may be prudent for taxpayers
earnings (P/E) as well as price- downturns are higher earnings such as metals, oil and gas and to disclose the cryptocurrency holdings in the foreign asset or
to-book (P/B) basis. volatility of cyclical sectors and construction remain high. income schedule.
“Therefore, this sector is their higher leverage. Hence, investors should have Amarpal Chadha is tax partner and India mobility leader, EY.
offering an attractive invest- “As an optimum strategy, only a tactical allocation to sec- Aditya Modani, director - people advisory services, EY India, has
ment opportunity over the next investors can deploy funds toral funds,” said Joseph. contributed to this column.

Returns on my investments Home loans can be availed singly or jointly

Building a portfolio is a complex exercise, and it has to be maintained, too. A person’s portfolio holds different types of assets
based on his/her financial goals, and each asset class gives different types of returns, which is why a portfolio must have an ideal Sonu Iyer principal of loan obtained from
mix of financial products. One must also keep in mind the volatility risk of the asset class, liquidity, lock-in rules and taxation. Here's an Indian bank, your brother/
a look at how four commonly used asset types—equity, cash, gold and fixed income—have done in different periods. I am an Indian citizen and I you can claim deduction of
have an elder brother who repayment on instalment basis,
works in Switzerland. Both stamp duty, registration fee and

5re0tu.rn7th1at
50.71 Returns (in %) of us are in our early 30s other eligible expenses for
and have no loan against acquiring a house subject to the
Equity (Sensex) Cash (liquid fund) our names. We want to pur- overall limit of ₹1.5 lakh for
The
s given Gold Fixed income (fixed deposit) chase a flat in New Delhi or each financial year. But such
Sensex ha ear Ahmedabad and need to deduction is available only if
over a 1-y avail a home loan for the your brother/you have taxable
period purpose. This will be the income in India (other than
first asset in the name of specified incomes such as long-
15.37 either of us or jointly. Can term capital gains).
13.89 14.32 ISTOCKPHOTO
my brother and I avail of a Further, depending on the
11.54 joint loan? How will the tax ASK MINT your brother/you may claim banks’ own eligibility criteria,
8.86 8.75 relief based on home loan m N R I TA X AT I O N deduction for interest on hous- cost of property and your abil-
7.0 7.36 7.71 EMI be calculated and how ing loan up to ₹2 lakh per finan- ity to repay, you may apply for
6.7
5.1 5.16 5.83
will it apply in this case? Is it cial year as loss from house home loan jointly or singly.
3.12 advisable to avail of a joint ownership of property. property. The deduction will be Sonu Iyer is tax partner and
loan or should it be done in As the property is likely to be available to the individual who people advisory services leader,
-0.78
the name of one of us? co-owned by your brother and has paid the EMIs. If your EY India.
—Name withheld on request yourself in equal share, the tax- brother and you have both con-
ability of the income from the tributed towards the EMIs, Do you have a personal
1 YEAR 3 YEARS 5 YEARS 10 YEARS Subject to banks’ eligibility property will also be equally then the deduction will be pro- finance query? Send in your
criteria, your brother and you divided. In case the property is rated in the ratio of contribu- queries at
Data as on 18 June. Equity is the benchmark Sensex return (price); cash refers to the average return for liquid funds category as defined by
may apply for a joint home loan. for your own residence or is not tion subject to the ceiling of ₹2 mintmoney@livemint.com
Valueresearchonline; gold refers to domestic gold prices available on Valueresearchonline; and fixed income is historic SBI fixed deposit rates.
All returns are annualized. and get them answered by
However, in case of joint home occupied as your brother and lakh per individual. industry experts.
PARAS JAIN/MINT Source: BSE, SBI, Value Research
loan, most banks insist on joint you are employed elsewhere, Further, in respect of the
12 TUESDAY, 22 JUNE 2021
MUMBAI VIEWS LIVEMINT.COM

OUR VIEW MY VIEW | BARE TALK

GETTY IMAGES

Policy and behavioural changes

can fill the MSME financing gap
Much can be done on several fronts to relieve small businesses of their problem of payment delays

specifying the payment of interest. The
MSME Development Act of 2006 pro-
posed guidelines for resolving the prob-
lem of delayed payments. Further, the
Factoring Regulation Act, 2011, helped
codify the factoring business to address
payment delays.
As per a recent report, Unlocking
Credit for India’s Job Creators, brought
V. ANANTHA NAGESWARAN & out by the Global Alliance of Mass entre-
RAMESH DHARMAJI preneurship (GAME), the total outstand-
are, respectively, a member of the ing payments to be made by buyers to
Economic Advisory Council to the Prime registered MSMEs in India could be
Minister; and ex-chief general manager, about ₹15 trillion. The average payment
buyers and sellers access to e-invoices
through a single window for factoring
and also enhance competition and
liquidity, reducing the price of factoring.
This could also facilitate the seamless
movement of invoices to a second win-
dow of TReDS for invoices drawn on
non-registered buyers to be discounted.
The integration and creation of a second
window could be facilitated by the
MSME ministry and RBI.
Apart from generating higher volumes
of invoices, it would also be desirable to
have more financers on these platforms.

Carlyle’s long shadow

SIDBI and advisor, GAME. period ranges between three and six Non-banking financial companies
months and is inversely proportional to (NBFCs), with their domain expertise in
the size of the enterprise. certain sectors and advanced analytical
The trade receivables discounting techniques, have a greater risk appetite

T
he world over, micro, small and system (TReDS) initiated by the Reserve for financing invoices hosted by lower-

over its buyout target medium (MSME) enterprises are

the backbone of a healthily bal-
anced economy. They supply an innu-
merable number of components, inter-
Bank of India (RBI) is a unified platform
for sellers, buyers and financiers to facili-
tate the financing of trade receivables of
MSMEs from corporate and other buy-
rated firms. To qualify as a ‘factor’ for
registration by RBI, an NBFC needs to
have 50% of its total assets/income from
the factoring business. This has been a
mediate goods and services at competi- ers, including government departments limitation. Amendments to the Factoring
tive prices to large original equipment and public sector undertakings (PSUs). Act promised in the 2020-21 budget,
PNB Housing Finance has got a SAT go-ahead for a shareholder vote on an equity allotment manufacturers and industry majors. Yet, TReDS provides easy access to funds at allowing more NBFCs to join the TReDS,
delayed payments for their goods and market-discovered rates of interest. The are still awaited.
that would grant Carlyle control of it, but the deal has aroused suspicions of a cheap sell-out services result in large portions of work- MSME ministry has mandated the regis- A committee headed by U.K. Sinha
ing capital being blocked, which, cou- try on the platform of companies with had recommended that a credit
pled with often-inadequate credit at rea- over ₹500 crore in turnover. However, enhancement mechanism for extending
sonable cost, leaves many financially some purchasers could be wary of trans- guarantees/comforts with respect to

O
n Monday, PNB Housing
Finance got a go-ahead from
the Securities Appellate
Tribunal (SAT) for a conclave
of shareholders scheduled on
Tuesday for a vote on its con-
troversial proposal to allot shares worth some
₹4,000 crore to a clutch of investors led by
The Carlyle Group, a US-based private equity
major. But India’s fourth biggest mortgage
lender must not declare results till the Tribu-
nal has its final say. The lender had appealed
against an 18 June directive from the Securities
and Exchange Board of India (Sebi), which
demanded an independent valuation of its
equity before it sought a wide shareholder nod
for the preferential allotment. As Sebi saw it,
the lender’s board resolution on the deal was
an overstretch of the authority granted by its
own Articles of Association, but the company
denied any violation of norms, arguing that it
had got its shares valued and the offer was in
the best interest of all stakeholders. This last
assertion, however, has been contested. As the
over 32% in the business via another invest- unviable and unable to plan for growth. acting on TReDS as they could lose the invoices accepted by smaller/lower-
ment unit, would control 50.2% of its voting The second wave of covid and its associ- flexibility of deferring payments to rated corporates be evolved. This could
ated lockdowns have again aggravated MSME suppliers. Hence, an option to be facilitated by the National Credit
stock while Punjab National Bank would see its their situation. The government has defer the retirement of an accepted Guarantee Trust Corporation and the
holding shrink from a bit above 32.6% to just announced emergency credit support invoice on TreDS up to a maximum of department of financial services.
over 20%. Word of a significant ownership measures and temporarily relaxed 180 days by paying additional interest of, Private sector initiatives, like the Open
shift appeared to play a role in the subsequent several compliance requirements. But, say 2%, above the contracted rate of Credit Enablement Network and iStack,
run-up of its market price, which doubled to this may also be a good time to funda- interest, may need to be provided. have been devised to bridge the MSME
mentally alter the availability of funds for In January 2018, the Economic Survey finance gap. The gap’s persistence, how-
about ₹880 in the span of a week. It has fallen MSMEs and their access to the same. noted that the goods and services tax ever, suggests that the problem is as
to around ₹700 since, but the escalation was The government has been trying to (GST) offered exciting possibilities for behavioural as it is related to policy or
taken as an indication of the control premium address the issue for the past few dec- not just ushering in a single market, technology. Industry associations and
its board could have got had it bargained ades. In the early 90s, Small Industries but also for other efficiency gains. In chambers of commerce must get their
harder. As critics pointed out, an alternative Development Bank of India (SIDBI) keeping with that spirit, and with a view members to embrace a culture of pay-
evolved a receivable finance scheme to to generate higher volumes of invoices ments to MSMEs on time. Corporate
would have been to make a rights offer that obviate delayed payment situations. The that can be financed and thus expand the business responsibility precedes and is
would let minority owners sell their equity 1993 Interest on Delayed Payments to factoring business manifold, a standing more impactful than corporate social
entitlement to control-seeking investors at a Small Scale and Ancillary Undertakings committee on finance headed by Jayant responsibility. ‘Matsya nyaya’, or big fish
premium determined by the market. This way, scheme sought to mitigate the burden of Sinha has recommended integrating the eating small fish, is not an enduring
they would have gained from the deal’s price small enterprises by defining day of TReDS platform with the GST network’s foundation for a prosperous India.
acceptance, deemed acceptance, and e-invoicing portal. This would grant These are the author’s personal views.
pop and not had reason to complain.
What fanned suspicions of PNB Housing
Finance’s neglect of shareholder value maxi-
mization, a fiduciary duty, were reports of a
board riddled with conflicts of interest. Of its
12 members, two are Carlyle employees nomi-
nated by it as representatives, while five others www.livemint.com New Delhi, Mumbai, Bangalore, Kolkata, Chennai, Ahmedabad, Hyderabad, Chandigarh*, Pune* Thursday, June 30, 2011 Vol.5 No.154 `3.00 32
24 PAGES
+ 4 MARKETS PAGES + 4 PAGES MEDIA MARKETING INITIATIVE

deal in question would give its allottees man- are reported to have indirect links with the Q&A: Vodafone CFO Andy
Halford on India tax case >6
CORPORATE: PE firm Apollo to invest
$500 million in Welspun >3

agement control of PNB Housing Finance, its group through a chain of past associations.
WSJ: Greece’s parliament

Banning [private
passes austerity plan >19
EXCLUSIVE PARTNER
POLICY: Environment ministry clears six
coal blocks in Orissa for power plants >5

offer price of ₹390 per share attracted allega- Carlyle is well known for its international heft
SENSEX 18,693 Æ 201.41 NIFTY 5600.45 Æ 55.15 DOLLAR `44.86 æ `0.18 EURO `64.48 æ `0.13 GOLD `22,030 Æ `40 OIL $109.62 Æ $1.44

cryptocurrency] would
SINGUR SAGA QUICK EDIT
GIVING CONTINUES TO GAIN GROUND IN INDIA

Tata Motors Googling

The India Philanthropy Report 2011 released on Wednesday shows that private charitable giving as a percentage of gross domestic
product (GDP) has increased by about 50% since 2006. With India creating the highest number of high networth individuals

tions of a cheap sell-out, and this is reason as much as its global sprawl of investments.
globally, charitable contributions are set to increase over the next five years. Still, challenges such as the lack of transparency and
accountability, unfriendly tax laws for donations and low awareness of channels for routing money have to be addressed.
See Page 4 for trouble
getstemporary I
DEVELOPED COUNTRIES DEVELOPING COUNTRIES t is usual to hear China
Private charity The government is a major contributor to demand that Google
contribution US* UK INDIA NGOs (over and above private charity
as % of GDP stop one or the other
contributions) in the form of grants
2.2 2.2 service that it offers. Now,

be like banning the

India too has joined that

relief from SC 1.3 1.3

country in asking Google to

enough for the case to merit a closer look. There are likely to be many professionals in
BRAZIL* CHINA remove content and
0.6 0.3-0.4 0.3 demanding details of users
0.1 0.2
0.2 from the Internet giant.
2006 2009 2006 2010 2006 2010 2009 2006 2010 In its six-monthly
Private charity
contribution, 304 29 5-6 5 11 “transparency report”,
State govt directed day they are going on changing 2010 ($ bn)
*US and Brazil charity contributions are for 2009. Google said that between
not to return land the position. The high court
has been hearing the interim
July and December 2010,
SOURCES HURDLES INTENTIONS India made 1,699 such
to farmers, Mamata issue for the last seven days requests. But more

That price was fixed on 31 May, when the India who have worked for a firm Carlyle has Internet in the 1990s and
Individual and However, other Key factors that inhibit growth in contributions Increase in contribution in the next five years
says will continue and every day the government
corporate giving countries are still (based on Bain India HNWI survey) (based on Bain India HNWI survey) seriously, it asked the
is doing whatever they want. ahead in this respect
with demarcation This is the respect they have for
has increased
Share of individuals and
Lack of transparency and accountability 100%
>20% search company 67 times
to remove content during
Private charity <20%
the court,” said Mukul Rohatgi, contributions by source companies in private 70% this period.
charity contributions 80
B Y N IKHIL K ANEKAL & Tata Motors’ lawyer. in India ($ bn) Unfriendly tax laws for donations
It is not clear if these
R OMITA D ATTA The firm clarified its position US UK CHINA 60% 60 <20% requests involved any
························· in court saying that it was cur- about 2 5-6 Low awareness of channels for routing money <20%
100% 86% 40
72% security concerns or
NEW DELHI/SINGUR rently only challenging the re- 81% 54% <20% checking criminals. But
75%

I
80 20 43% >20%
n a political setback to chief turn of land to the farmers and Peers influencing amount of contribution >20% some requests—such as

lender’s board okayed a preferential allotment invested in, but the composition of its target’s
minister Mamata Banerjee, not the Singur Land Rehabilita- 60 24% 0 >20%
removing blogs and videos
the Supreme Court tempo- tion and Development Act 40 In current If issues
Capital requirements for own business critical of chief ministers—
situation are fixed

will set India back by years

rarily stayed the West Bengal 2011. The constitutional validi- 20 19% are clearly not tenable in a
26% % of respondents
government from returning ty of the Act is being contested Focus on wealth creation Increasing contribution democracy. In case the
0
land to farmers in Singur. by the company in the Calcutta 2006 2010 2009 2010 2010 18% Significantly Slightly Status quo content is defamatory, the
However, the apex court high court, which declined any Foreign funds Companies Individuals % of respondents Reducing contribution right remedy is to
avoided any discussion on the interim relief. Companies and Individuals Slightly Significantly
approach a court. Forcing
Remaining contributions in the US, UK and China are Source: India Philanthropy Report 2011,
controversial law newly enact- Rohatgi also argued that the from foundations and bequests. Bain India HNWI survey, May 2011, Bain analysis Number of respondents=319 Google to remove content
ed by the West Bengal legisla- government’s actions were bad or ask for user

of 82 million equity shares and 20.5 million board is an outlier that casts the acquisition
ture to evict Tata Motors Ltd as
the Calcutta high court was still
hearing the case. The Supreme
Court ruling was in response to
AHMED RAZA KHAN/MINT
in law. “It is settled law that details—unless on very
when land is acquired and serious and clearly defined
public purpose is established grounds—takes the sheen
there is no question of revert-
Three senior MODERATION MODE off our democratic

while the rest of the world

Tata Motors seeking a stay on ing the land,” he said. credentials. The
land being handed back to
farmers.
But even after news of the
The state government’s
counsel told the Supreme
Court that the administration
Jet Airways Slowdown priced in, government should avoid
this behaviour.

apex court’s order reached Sin-
convertible warrants to Carlyle unit Pluto deal in unflattering light. It could turn out that
gur, the state government con-
tinued to carry out the process
of demarcating the land to
farmers, and was confident
that it would prevail in the le-
gal battle. Banerjee had made
was only in the process of de-
pilots flunk
markets hope that Inflation will
termining the allocation of the
land and it was not physically
handing over the property to DGCA checks
the farmers yet. He said this
would first have to be deter-
mined by a committee in order
B Y T ARUN S HUKLA
tarun.s@livemint.com
inflation is peaking slow to 6.5%

an electoral promise to return
the land to farmers if her party
was elected to power.
to settle any objections.
“I can’t do it until the high
court committee hears their
moves forward.
·························
NEW DELHI
ESSAYS ON A SLOWDOWN rate several times, making it
by the end of
T hree senior pilots of Jet Air- the central bank that has tight-

Investments and Aditya Puri’s Salisbury PNB Housing Finance has technically adhered the fiscal: PM
“The order doesn’t stop us claims. Unless they decide ways (India) Ltd who exam- ened the most in Asia, after the
from carrying out surveys and these objections, they cannot ine young student pilots have Manas Vietnamese central bank.
PART-3

identifying plots (to be re-
turned to previous owners),”
said Banerjee. “I am sure the
(final) order will be in the fa-
vour of the farmers and the
people.”
Earlier, the court’s vacation
return the land,” said the
state’s counsel, P.P. Rao.
Meanwhile, the state govern-
ment said it would continue
with its preparations to return
the land to its erstwhile owners
as it was confident of winning
themselves flunked tests con- Chakravarty That the tightening has led
ducted by aviation regulator Di- to a moderation in growth is B Y L IZ M ATHEW
rectorate General of Civil Avia- In a four-part series, Mint’s senior undeniable. The quarterly liz.m@livemint.com
tion (DGCA), which is seeking to numbers for real gross domes- ·························
editors assess the possibility and NEW DELHI
assess the competence of senior probability of a slowdown tic product (GDP) at factor cost
trainers and examiners at the
country’s airlines.
(at 2004-05 prices) sum up the
story succinctly. Quarterly P rime Minister Manmohan
Singh expressed confidence

Investments, among others, and called an to all the relevant rules for a share allotment of
bench comprising justice P.
Sathasivam and A.K. Patnaik,
while pronouncing the stay or-
der, also asked the high court
to expedite hearing of the case.
“In view of the urgency ex-
pressed by all the parties, we
request the high court to dis-
the case. Sripriya Rangarajan,
district magistrate of Hooghly,
said: “We are currently verify-
ing the title of the claimants.
We will carry on.”
The farmers too were hope-
ful. Some landowners who had
turned up to collect their title
Y
The checks follow DGCA’s ou don’t have to search GDP growth has steadily decel- that the current macroeconomic
March crackdown on young pi- very far in the markets for erated from 9.4% in the fourth outlook will improve with infla-
lots, some of whom had used evidence of a slowdown—the quarter of 2009-10 to 9.3% in tion dropping to 6.5% by the end
fraudulent mark sheets to obtain Sensex currently is lower than the first quarter of 2010-11 to of this fiscal year, even as he put
licences; around a dozen pilots where it was in September last 8.9% in the second quarter, up a strong defence on behalf of
were arrested during the drive. year. And it’s only 9% or so 8.3% in Q3 and to 7.8% in Q4. his government, which has been
Jet Airways’ examiner Manoj higher than where it was at the But the problem with these mired in a series of corruption
Manha, 52, and M. Shain, 52, end of September 2009. If the year-on-year growth numbers is scandals and controversies.

extraordinary general meeting on 22 June for this nature. This needs investigation. But it
pose of the main matters as deed refused to leave even after both experts on Airbus A330 air- market is indeed a leading in- that they’re affected by a lower or “We can deal with corruption,
early as possible, preferably news of the Supreme Court or- craft, were found to have “inade- dicator of the economy, it higher base. So let’s look instead we can deal with black money

within a period of one month,”
said the Supreme Court’s or-
der.
But this is a only a minor re-
lief for the car maker as the Su-
preme Court didn’t restore
possession of the abandoned
der. Ram Krishna Kolay, one of
the 12 erstwhile landowners of
Singur identified by the gov-
ernment, said: “I am not going
to leave without collecting the
title deed.” While inviting ap-
plications from erstwhile own-
N I SC HA L SHE T T Y
quate subject knowledge” during seems to have done a good job at the HSBC Purchasing Manag- but quite frankly it is wrong for
the checks conducted by DGCA of predicting the slowdown. ers’ Index (PMI) for both manu- anyone to assume there is a
in June. Jet subsidiary JetLite’s In the real world, of course, facturing and services. These are magic wand which will lead to an
Anupam Khanna, 43, a check pi- markets are buffeted by many survey-based month on month instant solution of these difficult
lot on Boeing 737 aircraft, was factors, including the ebb and seasonally adjusted numbers societal problems,” he said.
hauled up by the regulator for a flow of global risk appetite, the and similar surveys are available Singh rejected criticism that
“casual” approach during the level of interest rates in the de- for major economies globally, so he was a “lame duck” Prime

a shareholder seal. If the proposed expansion would be a shame if its small shareholders are
factory that the state seized
from it last week. For now, Tata
Motors has managed to stall
the state government’s move to
create any third-party interest
by preventing the immediate
return of the land.
Tata contended that the situ-
ation on the ground was
ers entitled to receive land, the
state government had said it
would also consider objections
if any raised to its proposed re-
distribution of land.
“I know the law—the gov-
ernment has to give a month to
hear objections,” said Baner-
jee. “The previous government
checks, lacking in “cockpit disci- veloped markets and valuations. we can compare trends. Minister and said this was “clev-
pline”, according to a govern- That said, cast an eye on the The manufacturing PMI er propaganda by the opposi-
ment official familiar with the MSCI indices and you’ll find the showed a slight deceleration in tion”.
matter, who asked not to be India index has been one of the May 2011, while the services PMI The Prime Minister also told a
identified. worst performers this year cooled off quite a bit and was be- small group of newspaper edi-
Jet’s spokesperson said in an among emerging markets. low its long-term average. Nev- tors in an interaction, a new ex-
email that the airline would be Why was India singled out ertheless, the reading on the ercise that will be frequently re-
sending Manha and Shain for for punishment? One reason composite index for both manu- peated with other media outlets,
“corrective training”, after which was that it was a relatively ex- facturing and services was a that he would reshuffle his cabi-

of PNB Housing Finance’s equity base goes left wondering who watches out for them
changing and might reach an wouldn’t even do that.” they will resume their duties. pensive market. But the key to high 57.7 in May, down from net very soon.
irreversible position. “The po- “The only unsatisfactory eval- its underperformance has been 60.7 in April. A reading above But analysts, who welcomed
sition must be frozen. Every TURN TO PAGE 2® uation was for one specific item very high levels of inflation. 50 signifies expansion and the Singh’s interaction with the me-
This has forced the Reserve
Mint is also available for R5.50 with Hindustan Times under a combo offer TURN TO PAGE 2® Bank of India to raise its policy TURN TO PAGE 3® TURN TO PAGE 2®

through, Carlyle, which has an extant stake of when it comes to big money and high stakes.

GUEST VIEW

There’s no easy victory in the country’s crypto cold war

cited an RBI circular published on 6 April
SONAM CHANDWANI 2018 that reportedly instructed all busi-
nesses it regulates to cease any involvement
with cryptocurrencies. State Bank of India
has also taken a tough stance on cryptos.
Several large banks, such as ICICI Bank, are
detail instances of losses arising from crypto in tracking down perpetrators of online is considering the imposition of an effective
transactions that might justify such a drastic crimes. Potential losses of revenue are also a ban on ‘private’ digital assets and currencies.
measure as a de facto ban on banks’ involve- big challenge for the government. Since the The Indian government has indicated that it
ment with cryptos. Therefore, it can be crypto market is unregulated, it is almost will table in Parliament the Cryptocurrency
stated that some pressure is being exerted on impossible to track crypto payments for any and Regulation of Official Digital Currency
Indian authorities to allow crypto services. tax liabilities that may apply. Bill, 2021, which will effectively ban private

T
he Reserve Bank of India (RBI) has
been in a cold war with India’s crypto
industry. The equation between the
two can best be described as antagonistic.
Since the central bank concerns itself with
India’s ability to absorb financial shocks, it
has time and again flagged the disadvanta-
ges of using cryptocurrencies. However, the
found to have stopped providing services to
crypto exchanges. Many such exchanges
have reported difficulties with getting bank
deposits and transfers.
Investor woes: As it could be anticipated,
cautionary emails from bank had prompted
an uproar among customers and crypto
investors, with many of them taking to social
Crypto endorsers: It is hardly news that Globally, cryptocurrency acceptance has cryptocurrencies and allow the introduction
Tesla founder Elon Musk been growing. Crypto- of an alternative by means of a central bank
is an ardent endorser of friendly Miami, US, played digital currency (CBDC).
cryptos. While many might A law banning host recently to an interna- India’s approach of trying to reduce the
view him as a crypto guru, tional crypto conclave, and domestic cryptocurrency sphere to a state-
others see his actions as private cryptos El Salvador has become the backed CBDC under RBI does not come as a
charades of manipulation first country in the world to surprise, but whether it’s viable is another
that have caused great vol-
could count as grant Bitcoin legal-tender matter. The Achilles’ heel of this approach is

is a managing partner at KS
Legal & Associates
industry has construed RBI’s reaction as
hyperbolic. India has been particularly bel-
ligerent towards cryptocurrency, so much so
that it constituted a high-level intermediate
committee to report on issues related to it. In
2019, this panel had recommended a blanket
ban on private cryptocurrencies in India,
which threatened to put crypto investors on
the wrong side of the law.
The belligerent attitude towards digital
currency has led banks, apparently egged
on by RBI, to emphatically distance them-
selves from the crypto community. In May,
HDFC Bank sent a rather strongly-worded
email to customers warning them against
virtual currency transactions. The email
media to express their discontent. Some of
the anger of investors can be attributed to
their fear of missing out on the high profits
that crypto trading offers them. A research
report by Bloomberg Intelligence that
appeared earlier this year, before Bitcoin’s
recent slide, said this crypto’s technical out-
look was strong and its price could surge to
$400,000 in 2021.
The government’s disposition raises the
question of whether all authorities in India
are wary of digital currencies. Apparently
not. RBI’s 2018 anti-crypto circular was
struck down by the Supreme Court, which
observed in a March 2020 ruling that RBI
had failed to provide sufficient proof and
atility in the market.
This is among the rea-
a battle win for status. Pressure to flip the
policy coin in favour of
the delusion that it is possible to ban crypto-
currencies, while the global experience so
sons that Indian authori-
ties are so averse to cryptos.
the state but cryptos seems to be rising.
However, given the irra-
far suggests that a blanket ban would be inef-
fective and it may be wiser to regulate them
Their prices are highly vol- that won’t be tional behaviour associated to mitigate systemic risks.
atile, they might not be with the market, and com- Going forward, it is imperative that a dia-
running rationally, and this the end of it ments like “Crypto isn’t the logue be held among all stakeholders on
poses the risk of a financial real economy” by Elon their concerns. As of now, crypto investors
bubble doomed to burst. Musk and put-downs by and traders risk getting dragged into litiga-
The pandemic has seen crypto prices boom, others—former US President Donald tion quicksand, which could cause much
but there’s no saying if this will last. A bigger Trump, for example, dismissed cryptos as a unease in this nascent sector.
worry, perhaps, is the anonymity of usage farce—both sides of the coin appear evenly If India’s cryptocurrency bill is enacted by
that cryptos grant users, which has led them balanced at the moment. Parliament in its current form, it would serve
to be seen as safe transaction tools for cyber While countries like South Korea are RBI’s objective. However, this would be a
criminals. Yet, it is unclear if cryptos should implementing legislative frameworks to reg- battle victory and need not indicate who will
pay a price for the inefficiency of authorities ulate cryptocurrencies and exchanges, India eventually win the crypto war.
LIVEMINT.COM VIEWS TUESDAY, 22 JUNE 2021
MUMBAI 13

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

Covid 2.0 has sparked a complex The problem with Biden’s red
line for Putin on cyberattacks
interplay of consumption trends It might set the stage for a new US doctrine but could also backfire

Brand marketers confront new consumer attitudes and preferences that may require some to rethink their market strategies

BLOOMBERG

MEGHAN L. O’SULLIVAN
is a Bloomberg Opinion columnist and a
professor of international affairs at
Harvard’s Kennedy School.
SHAHAN SUD
is an investment professional at Indian Angel
Network.

D
id President Joe Biden just issue a
red line to Russian leader Vladimir
Putin? When Biden described the

G
lobally, the covid pandemic has
unleashed an economic recession
along with offering a Pet scan for
countries to identify gaps in their
healthcare infrastructure. With
nature taking its course, humans
have had to change their ways. While the first wave
of covid did shock Indian industry, it was followed
by a digital Diwali and the hope of consumer
behaviour regaining normalcy by the fourth quar-
ter of 2020-21. The second wave only reinforced
the fears and concerns that consumers had in
2020, while putting consumer brands in a quag-
mire. Covid 2.0 has put in motion three important
trends: Duality of the evolving Indian consumer,
the rise of nutraceuticals, and third, an endeavour
by brands to ensure customer stickiness in a
de-synchronized society.
Marketers are currently facing a duality in
consumption trends. On one hand, consumers are
leading what I call an “unbranding revolution” ,
which refers to their comfort in purchasing prod-
ucts with minimalistic packaging, an increasing
preference for indigenous brands with organic
ingredients that don’t factor a premium into their
pricing, and their romancing of ‘upcycled’ apparel
via online thrift stores. On the other hand, there is a
heightened sense of brand loyalty that is driving
repeat purchases.
I categorize these two as bucket 1 and bucket 2,
respectively. While the first bucket comprises
consumers who pivoted from the ‘brand con-
scious’ bucket, largely on account of a deeper
understanding of product complexities and
increased focus on natural products for immunity
(something which covid made a priority and its 2.0
update made a necessity), the second bucket has
brand loyalists who are attracted either to the
convenience or usage experience of a particular
brand offering. Further, as consumers spend more
time at home, demand for premium fast-moving
consumer goods (FMCGs) and non-alcoholic
beverages has surged. As per an Accenture study
done in early 2021, 58% of such consumers are
either maintaining or increasing their purchase of
premium brands.
This hockey-stick growth is fuelled by mindful
indulgence and a desire to bring unique cuisines
home. Another impetus for this growth is the rise
of healthy snack offerings that boast of fortified
ingredients and cater to wellness- and immunity-
centric hunger pangs. With an increased role of
fortified ingredients in FMCG offerings, we will see
technology and innovation play a crucial role in
the nutraceuticals space—which will see a greater
overlap with FMCG offerings ahead. According to
Narayanan K.S., an advisor to food and beverages
companies, “Consumers today are overwhelmed
by fears and anxieties caused by lifestyle diseases
and viruses that they face daily, and are seeking
‘antidotes’ [and ways to] enhance immunity. The
ancient wisdom of using herbs and spices has
seen increasing acceptance and we have a number
of nutraceuticals and functional foods [being] mar-
keted as immunity boosters. Food and beverage
brands are also reducing ‘unhealthy’ ingredients
and incorporating ‘good for you’ ingredients to
address this need. We are also witnessing the
emergence of clean-label food products. Overall,
this rapidly growing health-focused segment holds
tremendous scope for innovation.”
However, while navigating this duality of the
Indian consumer, brands have had to reinvent
their channel strategies, as consumer behaviour is
expected to realign itself with a hybrid reality
wherein the centre of consumption is one’s home.
And this does not imply a simple shift from general
and modern trade outlets to online sales. Rather,
it calls for a new kind of customer orientation. It
requires marketers to explore the nuances of social
commerce as they track the digital consumer and
tap organic networks of local influencers to reduce
customer-acquisition cost, develop offerings for
emergent hybrid realities that could solidify by
2022, forge an emotional bond with the consumer
via the direct-to-consumer route, and set up the
necessary digital architecture to serve the needs of
this impatient and health-sensitive consumer.
Legacy brands have also begun to understand that
market-share gains can be made through these
new channels, and some companies have even
used excess cash on their balance sheets to make
strategic acquisitions in such segments.
As brands adopt this path of creating consumer
experiences for a de-synchronized society, they
will need to devise marketing strategies that can
engage their audiences in the safety of their
homes. Established brands can work towards
online engagement by strategically employing
open innovation mechanisms to gauge feedback,
create digital campaigns and develop new prod-
ucts. Over the next 18 months, such a strategy
could help brands put a finger on the pulse of their
consumers, while ensuring engagement at a time
when digital natives are displaying time paucity
and declining attention spans.
A subtle trend that can be observed in this space
is that insurgent brands are trying to create playful
mascots and are working around colours that offer
warmth and achieve a playful brand positioning, so
that consumers who are fighting emotions of stress
and anxiety find comfort in these offerings. It’s a
unique play, and only time will tell what dividends
it will reap. Observes Harish Bijoor, brand strategy
specialist and founder of Harish Bijoor Consults
Inc, “As the consumer trudges through charged
times, the marketer needs to be sensitive. This is
not the time to sell, but a time for marketing to
play the role of a balm. The celebratory economy
of yore is dead. At this point, marketers need to
prepare for the hope economy. They need to put
selling, branding and marketing on a pause for
now. That’s the best approach. Be the hand-holder
during tough times. When times get better, you
will be viewed as a friend and not a mere hard-
seller. The marketer must wear the tough shoes of
the consumer and behave like one.”
warning he gave Putin on cyberattacks, it
sounded like one. This is both surprising
and potentially problematic, but could also
spur progress in the development of norms
in cyberspace. Biden called his handing to
Putin a list of 16 untouchable infrastructure
entities a “proposition”, but it included the
promise of serious consequences if such
sites were hacked. After Wednesday’s sum-
mit, in response to a question on penalties,
Biden stated: “I pointed out to him that we
have significant cyber capability. And he
knows it. He doesn’t know exactly what it
is, but it’s significant. And if, in fact, they
violate these basic norms, we will respond
with cyber. He knows.” Biden also revealed
that he asked Putin how he would feel if
Russian pipelines got taken out by ransom-
ware. It could have been a casual question,
but Putin likely took it as a warning.
The implicit red line was surprising.
First, red lines in the cyber world have gen-
erally not been seen as a good idea. In 2016,
the deputy head of US Cyber Command
had said: “Ambiguity, not locking yourself
in, is the way that our government prefers
to do this.” Of course, much has changed
since then, but the freedom to respond to
cyberattacks however the US sees fit con-
tinues to be valuable. Second, President
Barack Obama’s red line for Syria was a for-
eign affairs fiasco, with the administration
talking about punitive strikes in 2012, only
to back down once it was found there was
no support in Congress for military action.
Obama’s failure to act upon his own red
line knocked America’s credibility on
defending norms it claimed to live by.
Biden’s implicit red line to Putin carries
all the complications that Obama’s threat
to Syria turned out to have. It limits US flex-
ibility in responding to cyberattacks, and
has the possibility that a failure to do so will
harm US credibility. Also, by specifying
what entities are untouchable, the implica-
tion may be that other sites are fair game.
Finally, determining that the Russian
state, as opposed to the sort of cybercrimi-
nals who attacked America’s Colonial Pipe-
line, is responsible for an offensive opera-
tion will likely be hard. Biden acknowl-
edged in his press conference that there
was a distinction between the Russian gov-
ernment and non-state actors. One can
only hope that Biden made it clear to Putin
that he will be held responsible for any
cyberattack against America—and that the
US government has assessed that Putin has
the ability to fully control such groups.
Joe Biden would remember the Obama-era
fiasco over Syria’s red line AP
The exception to the analogy with
Obama’s red line is that if faced with a Rus-
sian cyberattack on one of these 16 entities,
the Biden administration will not have the
complication (or the excuse) of needing to
consult Congress on its response. Whereas
there are strong legal arguments that the
president should seek authorization from
lawmakers of imminent military action, no
such law exists for cyber.
That said, Biden’s implicit red line could
have some benefits. For years, experts have
said that the damage done by cyberattacks
could be comparable to military strikes.
But recent ransomware attacks against US
entities have brought this reality into stark
relief, and underscored how deficient the
development of norms and doctrine has
been, given the state of technology. This
weakness persists despite laudable efforts
by various United Nations bodies, the
Global Commission on the Stability of
Cyberspace, and the Paris Call for Trust
and Security in Cyberspace of 2018. The
new red line could aid a strategic dialogue
on cyber-issues between Washington and
Moscow; if it spurs much-needed great-
power cooperation on norms of behaviour,
it would be a meaningful step in moving
the world beyond just identifying such
rules to major actors internalizing them.
In addition, should the Biden adminis-
tration find itself bound by the president’s
words to initiate a cyberattack against Rus-
sia, Congress is likely to wake up to the fact
that it has not exerted its constitutional
authority in a growing sphere of conflict
[and may contemplate legislative action].
Policy-making is usually about choosing
between bad options. Understandably,
Biden felt it was urgent to halt the alarming
trend of damaging cyberattacks out of Rus-
sia. He and his staff likely debated the pros
and cons of a red line before embracing
[this option].
Yet, it is difficult to see the benefits of
making such an exchange public. Biden
might have been able to create nearly the
same deterrent effect by underscoring the
untouchability of these 16 areas, and the
guaranteed consequences of a cyberattack
on them, in private with Putin. Now that
the world is on watch, the US government
will need to intensify its effort to formalize
what has thus far been informal in the
world of cyberspace. ©BLOOMBERG

MY VIEW | A VISIBLE HAND

India needs to push reforms for an equitable recovery

wan and Bangladesh are expected to post
NARAYAN RAMACHANDRAN strong expansion.
China’s economy rebounded earlier than
others, with an eye-popping 18.3% GDP
growth in the first quarter of 2021 over the
same quarter a year ago. The total value of
uneven recovery process. Many countries
including India are dealing with the ill-ef-
fects of subsequent waves, which have
necessitated restrictions on mobility and
economic activity. In some countries,
including Canada, the US and China, house-
Canada, Germany, Taiwan, Korea and India
have advanced about 80% from their lows
last March (in many cases to new highs).
Indian indices are about 25% higher than
their prior peak in January 2020. These
indicators signal strong confidence in an
about 6% of GDP. This should keep inflation
within India’s targeted band for a while,
allowing for policy action aimed at both the
supply and demand sides of the economy.
The country faces two major challenges in
the medium term. One, India must address

A
fter last year’s pandemic-induced
economic collapse, the global econ-
omy is on track to make a synchro-
nized—though unequal—recovery. A little
over a year after disaster first struck, human
ingenuity in the form of vaccines has miti-
gated its impact and accelerated that eco-
nomic recovery.
China’s exports rose by a staggering 38.7% in hold incomes have risen in 2020 due to fis-
that quarter, year-on-year. These enormous cal support. In poorer
jumps reflect a base-effect, as China had shut countries, particularly
its factories and locked down its cities during those with limited fiscal An impending
the early part of 2020. Measuring this first resources, this effect is less
quarter growth over the country’s perform- pronounced, and in some rebound offers
ance two years ago, exports grew by a rela- cases household incomes
tively modest 15.3%, and the trend indicates have underperformed
an opportunity
overall economic recovery and a comeback
of corporate earnings. As
economies and corporate
earnings recover, central
banks will begin to reduce
their accommodation. The
US Federal Reserve tele-
graphed exactly this at its
the recovery’s unevenness while returning
the economy to a balanced growth path in a
few years; and two, it must fix balance-sheet
crises in the banking, telecom and power
distribution sectors.
Some sectors, particularly small enter-
prises and many segments of the country’s
population in rural areas and arid patches,

is chairman, InKlude Labs. Read

Global economic growth (GEG) for 2021 is
expected to be 5.5% or higher, with emerging
Narayan’s Mint columns at
www.livemint.com/
markets posting growth of over 7%. This will
be the first synchronized growth since 2017,
avisiblehand when global economic output rose 3.3%, and
the highest in nearly five decades. Each of the
27 emerging markets represented in the
MSCI emerging markets index (MSCI-EM)
will post a positive gross domestic product
(GDP) change number for the first time since
the aftermath of the Global Financial Crisis
(GFC) in 2008. Aided by gradual normaliza-
tion in economies and significant monetary
and fiscal accommodation in developed mar-
kets (particularly the US), large emerging
market economies such as India, China, Tai-
deceleration. China’s challenge will be to
balance the mix of growth in its construction
and manufacturing sectors with growth in
consumption.
Even as a pall of gloom lifts over the global
economy, stark divergences across and
within countries are becoming visible.
Across countries, the economic decline and
then recovery has been shaped by the sever-
ity of the pandemic, the ability of healthcare
systems to respond, policy responses, on-go-
ing healthcare costs for impacted house-
holds, and how quickly supply chains have
been able to resume normal operations.
Countries and sectors have varied widely on
these metrics, resulting in a multi-speed and
even large declines in GDP
per capita. In countries and
to make reform
segments where incomes
have declined, vaccine
moves in sectors
availability is limited and that must not
resources are strained, the
economic impact will lin- go neglected
ger for many more quar-
ters. Only about half the
world’s countries are expected to achieve
their pre-recession per-capita peaks within
two years, the lowest for any post-recession
period in the last eight decades.
Stock markets have rebounded, leading
an economic recovery in most markets. In
local currency terms, markets in the US,
June meeting last week.
The sustainability of this
cyclical recovery also
remains a challenge
because frictional costs
related to three major long-
term drivers have
increased. Global flows of
trade, technology and tal-
ent now have greater restrictions than
before, endangering long-term growth and
increasing the risk of inflation.
For India, this cyclical recovery should
provide a cushion to undertake reforms.
India has one of the largest output gaps
among emerging markets, estimated at
will require fiscal support. If this fiscal sup-
port has to come without a significant cost
in terms of inflation, the fruits of the cyclical
recovery will need to be more evenly dis-
tributed. This will require further reforms in
agriculture, infrastructure, education and
health, and also a lasting solution to the
problems that afflict the public sector of our
banking system.
P.S.: “Mind the gap,” will have to become
the defining slogan for the world in the
medium term. Saving, income, education,
health, age, gender and digital divides have
all widened in the wake of the pandemic.
This is the second of a two-part series on the
post-pandemic global economy.
14 TUESDAY, 22 JUNE 2021
MUMBAI BUSINESS OF LIFE WELLNESS LIVEMINT.COM

ISTOCKPHOTO

The emotional (and social)

benefits of online gaming
It’s possible to build
fulfilling relationships
Yoga adapted in the West is becoming more dynamic and ‘faster’
with other players, while
the tasks and challenges
can help with anxiety The many
and adaptability in
different situations forms of yoga
Reem Khokhar Shrenik Avlani
businessoflife@livemint.com feedback@livemint.com

I
f we believe what we read in books or
see in movies, we would imagine a
gamer as a reclusive figure, hunched
over a screen with flashing images,
alone in a darkened room. The activity
itself often has negative associations—addictive,
excessive screen time, escapist, sedentary, and
socially withdrawn. Contrary to these percep-
tions, anecdotal evidence along with studies
and research show the social and psychological
benefits of playing online games. Many have
discovered fulfilling relationships with other
players, and the tasks, challenges and competi-
tion can help with anxiety, stress and adaptabil-
ity in different situations. In over a year of lock-
downs and social distancing, online games have
been a social and emotional lifeline to many,
even to those new to the experience.
Shivani Dayal Kapoor discovered this when
she played Tambola online with her family over
lockdown, enjoying the bonding, distraction
and stress reduction. The market research con-
sultant, currently on a sabbatical, missed the
pre-pandemic ritual of Sunday family lunches
at her grandmother’s house in Delhi. Conversa-
tions dwindled over regular Zoom calls,
prompting Kapoor to try something more
engaging. The sessions were a hit with relatives
in different countries joining in, prizes intro-
duced and even birthdays celebrated through
the game.
Dr. Neeru Kanwar Choudhuri, a psychother-
apist in private practice in New Delhi, identi-
fies one of the rules of dealing with depression
as staying socially connected. “This is chal-
lenging in a pandemic. I encourage clients to
be active virtually. Games provide an ease for
social connection. They also provide respite
and distraction for anxious clients. Some are
motivated by the competition and sense of
accomplishment.”
Even those who enjoy time alone are
attracted to the social aspect of gaming. “I do
well with alone time, but not having external
stimuli was starting to get depressing. My
brother and his friends set up a group to play
and I jumped in and found myself completely
captivated,” says Sushmita Sundaram, commu-
nications lead at a technology startup in Benga-
For those who are socially quiet, gaming can be a way to comfortably engage with others without feeling overwhelmed
luru, who plays games like Among Us, Code-
names and Garticphone with a floating group of
friends. Others enjoy the nostalgia and comfort,
like Divya Raghav who played Atlas, a trivia and
general knowledge game, with family and
friends online several times a week in lockdown.
The pandemic also displaced
many people, abruptly
disrupting their lives.
Abhijit Prasad has
not returned to the
UK, where he was
studying, since
lockdown last
year. The
advertising pro-
fessional in Luc-
know plays online
games regularly with
his friends, spread
across various countries, to
stay in touch. “Conversations
on Zoom calls run out after a
point, so we structure our time
around playing ‘Bingo’ or drinking
games like ‘Never Have I Ever’,” he
says.
This attempt to simulate a live
experience is the reason Jaipreet
Singh chose to play online golf with
his real-life golf mates. “I’ve never
been into online games, but when lockdown
interrupted our weekly golf games, I joined in
the virtual sessions,” says the Gurugram-based
corporate trainer.
STAYING CONNECTED
For those who are socially quiet, gaming can be
a way to engage with others without feeling
overwhelmed. “The social pressure
to stay super engaged is
reduced when you’re play-
ing a game. I think it’s a
great way to get some
social energy, but not feel
that Zoom doom in a
group video call,” says
Sundaram.
Catharsis and liberation
can be favourable
byproducts, where
the safe confines
of a game permit
activities and
behaviour,
which are not the
norm or accepta-
ble in reality, like
wearing outlandish
costumes; sabotaging
and eliminating other
players; or even being
ISTOCKPHOTO
politically incorrect. Prasad often plays ‘Cards
Against Humanity’ online, a fill-in-the-blanks
game with phrases or words that would other-
wise be deemed offensive. “The humour is liber-
ating. The jokes are uncool in any other context,
but the game is a safe space,” he says.
Many have discovered a surprising side to
themselves or other players. “I learned about
everyone’s competitive spirit and how well-read
these people who I meet frequently are. I was
also able to see that my assertiveness training
had paid off!” said Raghav.
TOO MUCH OF A GOOD THING
Dr. Choudhuri advises caution when selecting
games in certain cases. “Some games may dis-
turb the sense of self-esteem for a vulnerable
person. Insecure or anxious persons can be
caught in a loop of rejection and then redemp-
tion by trying to win approval against all odds.”
She also cautions against a reliance on this
make-believe world. “One may prefer to actively
avoid reality as it appears tiresome in compari-
son to an attractive virtual reality.”
Will the lure of online gaming continue when
physical interactions resume? The novelty of
in-person interactions may overshadow the joy
of these games, feels Sundaram. “I don’t know
if I’ll keep up with it as much after we go back to
the old normal, but I’ll be less dismissive of it the
next time someone suggests it.”
M
ood lighting, floor to ceiling mirrors, temperature con-
trol and soothing ambient music—it’s not a fine dining
restaurant or a decadent spa we are talking about but
your typical modern yoga studio in urban India. Yoga is being
sold as a trend and a wellness fad in India today just as it is in the
West, says Namrata Nagpal, a yoga practitioner from Bengaluru.
She feels Western versions of yoga are “compelling” but watered
down and a form of cultural appropriation. “Yoga is inherently
spiritual,” says Nagpal.
People now want their yoga to be a full workout and prefer the
more dynamic and fast-paced forms to classical and traditional
yoga techniques, say some instructors. “Yoga started becoming
popular in India when it made a re-entry into our metros along
with American popular culture. It had to be adapted to suit West-
ern lifestyles and fitness needs, and fit into the busy lives of peo-
ple with little time or patience. Traditional yoga is slow, needs a
lot of patience and concentration,” says Abhishek Sharma, a
celebrity yoga trainer and author of Fitness On The Go.
Even as the world marks International Day of Yoga, these views
are echoed by other purists. However, others counter this com-
plaint. The fact that yoga in the big cities is done in studios by
people wearing smart workout clothes gives people the percep-
tion that it has become “too Westernised”, says Manish Pole,
founder of 21st Century Yoga in Bengaluru. “However, the studio
is not a Western concept but a result of urbanisation,” he says.
“If this is helping more people take to the mat, it’s very good for
the growth of yoga and for practitioners,” says Rinku Suri, a yoga
instructor and founder of Yoga 101 in Mumbai.“Whether I wear
a sari or yoga pants, I will still be myself. Yoga, too, is just yoga, no
matter the packaging,” she says.
There is also some contention that yoga in its present form has
become expensive. “It has become exclusionary. In order to prac-
tice yoga ‘correctly,’ one has to pay exorbitant fees,” says Nagpal.
If you go to studios or demand private sessions, it can get expen-
sive, agrees Sharma. However, teaching yoga is a full-time job for
many and a source of revenue for studio owners, contends Suri.
“Why shouldn’t good yoga teachers and studios be compensated
well? Even they need to pay their bills,” she says.
In its simplest form, yoga can be practised anywhere, says Nag-
pal. “All that is required is the connection of body, mind and
earth.” However, if you still need an instructor, there are plenty
of free and affordable options. Traditional institutes such as
Mumbai’s Santa Cruz Yoga Institute and Bhavan’s Yoga Bharati
might lack the “cool” quotient of studios but their lessons are
excellent, says Sharma.
Ultimately, if faster forms of yoga are getting people to take to
yoga, it is a good thing, says Sharma. “Young people who stick to
yoga for a longer period of time tend to move towards the classical
and traditional forms later, in my experience,” he says.

Rooibos
gets
protected
status
AFP

S
outh Africa’s antioxidant-rich
rooibos or bush tea has been
assigned the status of pro-
tected designation of origin. Like
champagne, roquefort and Kalam-
ata olives, rooibos tea has been
added to a European Union list of
protected agricultural products and
foodstuffs. The protected designa-
tion of origin (PDO) status, assigned
to the tea or “red bush” late last
month, means only leaves culti-
vated in South Africa’s southeast
Cederberg region can be sold as
“rooibos” in EU countries and sev-
eral others outside the bloc.The
PDO status—meant to protect the
name and authenticity of unique
geographically-linked products—
will allow producers to limit com-
petition from a growing range of
non-genuine rooibos teas that have
appeared amid rising demand for
the caffeine free, antioxidant-rich
brew. “It gives us the ability to mar-
ket rooibos much more aggres-
sively,” South African Rooibos
Council director Nicie Vorster said.
South Africa produces an average
of 15,000 tonnes of Rooibos per
year, according to the council,
mainly in the Cederberg’s rocky
mountain range.
The reddish, needle-shaped
leaves are brewed into a sweet
earthy drink widely popular among
locals. Rooibos leaves are also
mixed with other teas for aromatic
infusions, fitted into coffee capsules
to make “red cappuccinos” and
used as a base for beauty products.
Touted for its health benefits, rooi-
bos has gained international popu-
larity over the past two decades.