FINANCE AND INVESTMENT CLUB

PRESENTS

ARBITRAGE
SEPTEMBER 23 | VOL 6 | ISSUE 7

OUR BEST READ:

TRAVERSING THE LABYRINTHINE RIDDLES OF MAKE
IN INDIA 2.0: A PARADOX OF ECONOMIC
RESURGENCE AND GLOBAL SELF-SUFFICIENCY

SPECIAL MENTION TO:

SUSTAINABLE INVESTING: RETURNS AND VALUES
Index:

S. No. Title Page

1 Traversing the Labyrinthine Riddles of Make in India 2.0: A 3

Paradox of Economic Resurgence and Global Self-Sufficiency

2 Sustainable Investing: Returns and values 6

3 The Economics of E-Sports: Where Entertainment Meets 11

Investment

4 The India Story 14

Banks and Fintech Companies – Distinct Revenue Models and

5 18
Possible Disruptions Ahead

6 Blockchain-Based Supply Chain Finance 21

7 Striking Gold: The Financial Triumph of Athlete Branding 23

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 Traversing the Labyrinthine Riddles of Make in India 2.0: A Paradox of
Economic Resurgence and Global Self-Sufficiency
~Prachi Shree (TAPMI)

Embarking on a cognitive odyssey into the intricate tapestry of socio-economic metamorphosis, we

find the resplendent narrative of "Make in India 2.0" unfurling its enigmatic tendrils before us. In
this era of boundless globalization, where economic currents traverse borders with
abandon, India's visionary venture beckons us to plunge beyond the superficial and unravel the
cryptic complexities beneath.

Figure 1: Timeline of Make in India

Untangling the Paradox: Unveiling Make in India 2.0

Make in India 2.0, an entrancing symphony of policy renaissance, orchestrates an ethereal ballet
between domestic manufacturing rejuvenation and the siren call of global interdependence. This
second act in India's economic saga emerges as a living paradox: an endeavour for self-reliance
within the ever-expanding bounds of a borderless world. As the curtain rises on this mystifying
spectacle, the audience is summoned to introspect upon the labyrinthine layers that lie beneath.

Neural Firings: Impact and Ascendance Across Diverse Sectors

The landscape of manufacturing, ever a shape-shifter, now witnesses transmutation across
multifarious sectors. The kaleidoscopic dream of electronics dazzles with its synchronous ascent, a
testament to India's dalliance with the idea of becoming a nucleus of technological production. The
textile tapestry, interwoven with threads of tradition, is also experiencing a resurgence,

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embracing automation while remaining anchored to its artisanal essence. In the realm of
automobiles, a canvas of innovation strokes, the stage witnesses the emergence of electric
vehicles as emissaries of sustainable mobility.

Yet, beneath the shimmer of advancement lies the paradox of adaptation. The oscillation
between preserving indigenous craftsmanship and propelling the juggernaut of mechanization
strains the sinews of India's industrial renaissance. Can the allure of automation synchronize
harmoniously with the symphony of age-old craftsmanship?

Figure 2: Sector-wise Growth Comparison

Foreign Direct Investment: Navigating the Labyrinth

In the epoch of global capital pirouetting across borders, foreign direct investment (FDI) forms
a nebulous constellation in India's economic firmament. The trajectory of FDI, sometimes
meteoric and other times enigmatic, intertwines itself with the narrative of Make in India. A
mosaic of inquiries surfaces: Does augmented FDI herald the crescendo of India's
manufacturing aspirations? Or does it signify an umbilical tether to global economic titans,
potentially dampening the crescendo of self-reliance?

The steadfast duality persists—a clarion call for refinement in policy architectonics. To forge an
environment where FDI transcends transient visits to become lasting allies in the voyage toward
an economic renaissance, India must tread the serpentine byways of regulation with sagacity.

Global Manufacturing Nexus: Ambition or Fated Design?

ndia, draped in the enigma of ancient civilizations, now forges an alliance with modernity's most
fervent suitor: manufacturing. The crux of Make in India 2.0 converges at the crossroads of
becoming a global manufacturing nexus.

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 A nexus—a convergence of intricate threads woven from disparate corners of the globe,
entwined yet harmonized in the grand tapestry of production.

As the compass of ambition points resolutely toward this zenith, questions coalesce. Can India
navigate the torrent of technological dynamism to craft a niche as the world's quintessence of
manufacturing prowess? Can this subcontinent, saturated with historical narratives,
metamorphose into a report that reverberates as a nucleus of innovation?

Figure 3: Transforming Manufacturing Landscape: Pre and Post-Make in India 2.0

Denouement: Unweaving the Gordian Complexity

In the labyrinthine saga of Make in India 2.0, one discerns an enigma: a paradoxical push-pull
between self-reliance and global interdependence. The sectors flourish with their kaleidoscopic
blooms, each mirroring the broader chiaroscuro of policy aspirations. Foreign direct investment,
a Janus-faced entity, reflects the ambiguity of economic integration.

As India endeavors to inscribe its saga into the chronicles of economic transmutation, the pursuit
of evolving into a global manufacturing nexus remains an unfinished sonnet. This odyssey
necessitates equilibrium—the adeptness to interlace tradition with innovation, autonomy with
cooperation, and aspiration with destiny.

In this intricate palimpsest of policy and aspiration, the Rubik's cube of Make in India 2.0
remains unsolved—a testament to the complex choreography between human ambition and the
dance of economic paradox.

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 Sustainable Investing: Returns and values
~Mukul Bhardwaj (NMIMS Mumbai)

Introduction
The world as a whole has recently observed an astonishing shift in the way people approach their
financial investments. Traditional financial goals, such as maximizing profits, are no longer the
sole focus for many investors, regulators and governments. There is a growing trend towards
sustainable investing, where individuals and institutions seek to align their financial securities with
their values and environmental, social, and governance criteria. This paradigm shift not only
reflects a conscious fight against global issues but also highlights the potential od generating
positive impact alongside financial returns.

The Rise of Sustainable Investing

Investors are increasingly recognizing that their portfolios, no matter how small or large, have the
potential to be a force for positive change, and they are willing to invest their capital accordingly.

The increasing adoption has been driven by several key factors:

1. Environmental Concerns:
As the effects of climate change become more evident and urgent, individuals and institutions are
increasingly concerned about the environment. It is predicted that as much as 4.5% of India’s GDP
can suffer by because of climate change by 2030. (Economic Times)

2. Governance and Accountability:

Investors are now demanding transparency and responsibility for the social and environmental
impact of corporations. Sustainable investing encourages companies to adopt better governance
practices. It has also been mandated by SEBI for companies to disclose their ESG policies.

3. Financial Performance:
Research has shown that sustainable investing has offered better competitive financial returns.

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Types of Sustainable Investments
Sustainable investing encompasses a broad spectrum of investment strategies and approaches, each
tailored to meet specific goals and values. Some of the most common types of sustainable
investments include:

1. ESG Integration:
In this method, conventional financial analysis is combined with an evaluation of a company's
environmental, social, and governance standards. Investors utilize this data to decide on their
investments with awareness.

Source: Finance Strategists

2. Impact Investing:
Investments that produce verifiable social or environmental benefits in addition to financial returns
are given priority by impact investors. This strategy frequently focuses on underprivileged
populations' access to sustainable energy, affordable housing, and healthcare.

3. Ethical Investing:
Ethical investors exclude companies involved in activities they find objectionable, such as tobacco,
weapons, or gambling. Ethical investing refers to a strategy of investing in companies or asset
classes that align with the moral, religious and social values of the investor. The NIFTY ESG,
NIFTY ENHANCED ESG, and NIFTY SHARIAH are some of the most well-known ethically
oriented indices. (etinsights)

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4. Sustainable Mutual Funds and ETFs:
These investment approaches collect capital from a large group of investors and focus on
sustainable companies or industries. They offer diversification while adhering to sustainability
criteria. Some of them are Axis ESG, SBI Magnum Equity ESG, Aditya Birla Sun Life ESG,
Kotak ESG Opportunities, ICICI Prudential ESG and Mirae Asset ESG Sector Leaders ETF.

5. Green Bonds:
Governments and corporations raise capital by issuing green bonds, to aid socially and
environmentally positive projects. Investors in green bonds support initiatives like renewable
energy development and climate adaptation projects.

The Impact of Sustainable Investing

Sustainable investing is not just a feel-good trend; it has a tangible impact on the world, by
directing capital towards companies and projects that prioritize sustainability and social
responsibility, investors are effectively voting with their wallets. Here are some of the ways
sustainable investing is making a difference:

1.Encouraging Responsible Business Practices:

Companies seeking capital are incentivized to adopt more responsible practices to attract better
investments.

2. Accelerating Renewable Energy:

Investment in renewable energy projects has surged, driving the transition away from fossil fuels.
This helps in curbing the harmful greenhouse emissions and combat climate change effectively.

Source: World Economic Forum

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3. Promoting Diversity and Inclusion:
Ethical and socially responsible investments contribute to diversity and inclusion initiatives by
supporting companies that prioritize these values.

4. Improving Governance:
Sustainable investing encourages better corporate governance, which can lead to reduced corporate
scandals and a more equitable distribution of wealth. (EY)

Challenges and Considerations

Even while the advantages of sustainable investment are evident it's important to recognize the
difficulties involved as well:

1. Inconsistent investor confidence:

ESG mutual funds in India were introduced in a hasty manner in 2020, and as a result, their assets
under management (AUM) have been steadily declining.

Source: Forbes India

2. Data and Measurement:

Assessing ESG factors can be complex, and there is a lack of standardized reporting. Investors
must rely on varying sources of data and metrics, which can make comparisons difficult.

3. Risk and Returns:

There is ongoing debate about whether sustainable investments can consistently outperform
traditional ones. This has led to no new schemes and money outflow in recent previous years.

4. Greenwashing:
Some companies may exaggerate their sustainability efforts to attract investors. Due diligence is
crucial to ensure that investments genuinely align with one's values.

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 Source: Forbes India

5. Diversification:
Focusing too narrowly on sustainable investments can limit diversification, potentially increasing
portfolio risk.

6. Time Horizons:
Sustainable investments may have varying time horizons for achieving financial returns and impact,
which may not align with all investors' goals.

Conclusion:
Sustainable investing represents a powerful shift in the world of finance, where financial securities
are no longer just tools for wealth accumulation but also instruments for driving positive change.
As investors increasingly prioritize values, ethics, and sustainability, the people and systems are
adapting to meet these demands. While there are challenges to navigate, the potential for creating a
more sustainable, just, and prosperous future through sustainable investing is undeniable. By
making informed, values-driven investment decisions, individuals and institutions can contribute to
a better world while pursuing their financial goals. In this way, sustainable investing is not just a
trend; it is a responsible and impactful approach that is here to stay.

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 The Economics of E-Sports: Where Entertainment Meets Investment
~Jagrit and Mukti (Sri Venkateswara College)

Once playing video games was just a hobby but now it’s a billion-dollar industry. According to
Business Insider, the E-Sports industry is expected to surpass $1.5 billion by the end of 2023. In
recent years, it has experienced remarkable growth, evolving from a niche subculture to a global
phenomenon with a massive audience and significant financial potential. The rise of the E-Sports
industry provides investors with a range of opportunities including E-Sports teams, event
organization companies, game development studios, and publicly traded stocks. The exponential
growth of the audience, with about 530 million people engaged with the industry in 2022, is one of
the metrics to prove that investment in E-Sports can be a great move to capture the rapid growth of
the global gaming and entertainment market. As you go with the flow, you’ll be able to get a better
understanding of the revenue streams in the industry, attractive investment opportunities, the rapid
growth of the industry and the risks and challenges prevailing in the industry.

The E-Sports industry offers a diverse range of revenue streams including sponsorships, advertising,
media rights, ticket and merchandise sales etc. Sponsorships, being the significant source of revenue
streams, account for around 95% of revenue generated by some teams. As E-Sports is highly
dependent on gaming equipment, IT and computer-related brands are majorly interested in
providing sponsorships. Another significant revenue stream in the E-Sports industry is Advertising.
Advertising revenue in eSports comes from various sources, including in-game advertisements,
video content, and live streams. Ticket sale is yet another emerging revenue stream. During the
League of Legends Championship held at Los Angeles’ Staples Center, about 15000 seats were sold
in just 12 minutes in 2016. Considering that the E-Sports industry is still in the initial stage, the
statistical data shows a high growth potential in the industry. With time, more non-endemic brands
will look to tap into the market, advertisers will see E-Sports as a prime platform to reach young
demographics, more frequent and larger events will help in increasing the ticket size, and newer
streaming platforms, merchandise etc. will emerge as the potential revenue streams. When
compared to traditional sports, it still has some catching up to do in terms of revenue but as it is
attracting newer audiences and increasing revenue streams, it presents a great opportunity for
investors.

Professional E-Sports players do have a similar channel of income as that of a traditional athlete
with major income sources such as player contracts. These contracts serve as a crucial component
of a player’s career as it lays down the obligations, compensation and terms of engagement with the
team or the organization. If we look deep into this income structure, it can be broken down into
base salary, performance bonus, revenue sharing and endorsements. The player contract lays down
the salary, duration, code of conduct, termination and other related policies that are crucial for a
player’s involvement with the team or the organization.

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These contracts play a pivotal role in determining how E-Sports players will earn money and what
is expected from them in return. As this industry is growing, we will see better contract standards
and player’s rights.

E-Sports have investment potential in various areas consisting of Mergers and Acquisitions,
Venture Capital, Team Ownerships, publicly traded stocks, Infrastructure development etc.
Recently, Savvy Games Group, which is backed by the Saudi Arabian Government, acquired one
of the largest e-sports-focused companies, ESL FaceIT Group, for a whopping amount of $1.5
Billion. Also, there are a lot of notable people investing in the industry. Michael Jordan invested in
aXiomatic Gaming, while the Kroenke family (owners of the Los Angeles Rams) acquired an
eSports franchise in the Overwatch League. These examples show the broad range of investment
opportunities within the industry, where forward-thinking individuals and firms have capitalized
on the industry’s remarkable growth.

No doubt that the E-Sports industry is flourishing, but it has some major challenges and risks that
need to be catered to. Player Burnout is one of the major concerns as the extensive training and
competition schedules would not always prove to be beneficial. It can lead to have a bad impact on
player’s physical and mental health. Another major concern is with regulations and laws prevailing
in the country. The E-Sports industry faces evolving regulatory challenges related to players’
contracts and rights, intellectual property rights etc. These hurdles or barriers can lead to
disruption in the team operations, tournaments and revenue streams. There are a lot more
challenges prevailing in the industry such as Technological advancements, player misconduct,
market fragmentation and saturation, etc. Navigating these challenges and mitigating risks is
essential for the continued growth and success of the eSports industry.

Though the recent years proved to be a boon period for the E-Sports industry, still the industry is
fighting with the pervasive lack of awareness among the broader population. A large group of the
population is still unaware of its scale, potential and revenue-generating capacity. People still
perceive it as a niche category that is only limited to playing games for fun. These misconceptions
are particularly prominent amongst older populations and regions where E-Sports do not have a
strong presence. Accepting E-Sports as a legitimate career path is still a challenging task for a
majority of the population. To bridge this awareness gap, media coverage, outreach efforts and
awareness initiatives would play a pivotal role which will showcase the immense opportunities
present within the industry in terms of investments, businesses and a career.

In Conclusion, E-Sports has transformed from a mere hobby to a billion-dollar industry, with a
projection of reaching $6.8 billion by the year 2030. This tremendous rise is a result of a diverse
range of revenue streams, attracting investments in teams, events, game development, and stock

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Professional players, just like traditional athletes, earn through contracts with elements like salaries,
bonuses, endorsements, and revenue sharing. The industry offers promising investment
opportunities, exemplified by various acquisitions and investments by notable personalities.
Though there are a lot of challenges prevailing in the industry like player burnout, regulation, lack
of awareness etc., these can be catered to by taking necessary proactive solutions. As this industry
continues to evolve, it presents exciting opportunities for both investors and enthusiasts.

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 The India Story
~Aman Dugar(IMT Ghaziabad)

The Golden Bird’s Flight

India’s unprecedented transformation has just started. Let us understand the crux of it. The total
FDI inflow we have received since 1947, is $950+ billion, more than 50% of it has come in the past
90 months. It has come from 162 countries. It is a global record. For 8 consecutive years from
2015, we set up a new FDI record for ourselves every year. Even amid the lockdown in 2022, we
received our highest-ever FDI of $83.5B. It has come across 61 sectors, again a global record. It
has come in 31 states and union territories of India. The breadth of opportunities that India
presents today is unprecedented. The new engine of India is bottom up. The new growth of India is
not just seven big cities of this country, but every small town is today a part of India’s growth
story. We are at a GDP today of around $3.5T. The first trillion took us 67 years, the second
trillion took us 8 years and the third trillion took us 5 years. We see a pattern of exponential
progression. From 2015 until now we have moved ahead of Russia, Italy, France, Brazil and the
UK from spot 10 to 5. We are knocking at Germany’s door and soon Japan too. Before the
pandemic, we were the fastest-growing economy. After the pandemic, we are the fastest-growing
economy.

Merchandise Trade and Export Diversification

The backbone of the international economy is global trade. In the last 2 decades, the Indian
economy has experienced an average growth rate of approximately 6.4%. Concurrently, the
proportion of exports relative to the total gross domestic product (GDP) has nearly doubled,
escalating from 13.7% in FY04 to 23.5% in FY23. Despite this increasing contribution of exports
to the GDP, India has not significantly expanded its portion of global exports. In 2022, India's
share of worldwide merchandise exports was merely 1.8%, indicating a marginal growth of 0.2
percentage points over the past ten years. In contrast, China's global export share surged by 2.8
percentage points, reaching 14.4% during the same time frame. Even Vietnam, a smaller economy,
grew by 0.8 percentage points, raising its share to 1.5%. The Herfindahl-Hirschmann Index (HHI)
measures market concentration used to assess competition within a particular industry or market.
India's exports exhibit a relatively higher degree of variety when compared to countries like
Bangladesh and the Philippines. However, India's export diversification is somewhat limited
compared to the United States, Germany, and China. India's merchandise trade shows that our
exports moved away from the advanced economies in the 1990s towards emerging and developing
economies. The share of developed economies reduced to 48.8% in 2022 from 62.4% in 1990 while
the share of exports to emerging and developing economies increased to 50.6%. The key reason
being the demand slowdown in India’s key export destinations following the 2008 global financial
crisis.

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Boosting Exports through Enabling Imports
The foundation of a nation's economic advancement largely rests on its manufacturing sector,
which greatly benefits from the importation of essential inputs utilized by downstream industries.
In India, the import composition primarily comprises raw materials, accounting for 32.7% (2016-
20), trailed by intermediate goods at 31.9%. The remaining import categories consist of capital
goods with a 22.6% share and consumer goods at 11.7%. Recognizing the pivotal role of capital
goods in progressing up the value chain, the government established the Export Promotion Capital
Goods (EPCG) Scheme, prioritizing the import of capital goods to enhance India's export quality
and competitiveness. Under this scheme, zero customs duty was applied to the import of capital
goods for various stages including pre-production, production, and post-production.

Services
India has positioned itself as a significant participant in the global services trade, with its service
exports growing at CAGR of 8.5% in the last decade. India's portion of the worldwide services
export pie has elevated by nearly 0.8 percentage points, reaching 4%. The prevalence of software
services within India's service export portfolio remains constant, constituting 45% of the total in
FY23. To achieve services exports amounting to USD 1 trillion by 2030, there is a need to diversify
the spectrum of services exports focusing on business services. The government has identified 12
critical sectors within the services domain, which aims to nurture and unlock their potential for
growth. India’s openness in services trade is lower than other major advanced economies across
most segments. Reducing the services trade restrictiveness will help to further, increase our share in
global services exports in the long run, while also boosting the capacities of the downstream
industries that rely on services as inputs.

FTA push
India has re-engaged in new trade agreements after nearly a decade. It currently maintains 13
FTAs/RTAs and 6 Preferential Trade Agreements. Ongoing negotiations include FTAs with the
UK, EU, and Canada. Trade deficits with major FTA partners like Japan, South Korea, and
ASEAN widened due to India's income-elastic, less price-elastic exports. Other factors affecting
FTA performance include tariff asymmetry, domestic manufacturing competitiveness, delays, and
non-tariff barriers. India's low utilization rate (5-25%) in regional trade reflects industry struggles
to benefit from trade agreements. India’s worsening trade balance with its FTA partners must not
just be viewed from the lens of cheaper imports posing a threat to domestic producers, but it is
crucial to recognise the importance of these imports for the downstream industries using them as
intermediary inputs.

Way Forward
India is progressing towards achieving developed nation status by 2047, with exports highlighted as
a key driver of economic growth. The goal of achieving USD 2 trillion in exports by 2030 is feasible
given the nation's substantial economic potential.

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 To address this aspiration of significantly expanding goods and services exports, the recent
unveiling of the New Foreign Trade Policy (FTP) 2023 is noteworthy. This fresh trade policy
hinges on four key pillars: incentivizing remission, collaborative export promotion, improving the
business environment, and concentrating on emerging sectors. While pursuing this ambitious
objective, enhancing domestic readiness is imperative for a larger global trade share. The
government's proactive measures to support exports and establish new economic partnerships
through trade agreements align with this direction. As India navigates a challenging global
economic landscape, consistent policy backing is crucial to sustain and enhance the country's
export efforts.

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 Banks and Fintech Companies – Distinct Revenue Models and Possible Disruptions
Ahead
~Uday Dosajh(SOIL-School of Inspired Leadership)

The fintech industry is rapidly growing, and with it, the number of fintech apps available to
consumers, offering a variety of features and services, from payments, subscriptions for daily
offerings, recharge options to more complex things like Insurance, investment and loans.

This has completely disrupted the traditional banking sector and they have been pushed to grow
and evolve their offerings to suit a digitally savvy consumer who is now looking for ease and
increasing convenience. Who would have otherwise thought that sitting at home and while sipping
your coffee, you could just by a few clicks open an FD in less than a few minutes, by entering an
amount and selecting a few other options and go back to sipping your coffee again!

For us as consumers, the options have increased and the services have improved but how have
these the sectors individually performed? For ease of analysis, lets pick up the financial numbers of
HDFC Bank and Paytm for FY23, starting with revenues and its streams to start with.

The overall revenue for HDFC Bank stands slightly over 1 lakh crores, and their revenue streams
split via business activity are following:

- The major source of income comes from the interest from lending, which forms a major chunk in
case of HDFC bank expectedly with 65.9% of total income.

- This is followed by income from investments at 16.1% and commission from brokerage at 12.4%.

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For a fintech app like Paytm, the revenue numbers and split are very different.
- The overall revenue stands at 7990 crores with 62% coming from Payment services, 19% from
financial services, and another 19% from Commerce and cloud services, which has seen a slight
shift from FY21 to FY23.

Here, payment services primarily include transaction fees from Merchants based on a certain
percentage of Gross Merchandise Volume (GMV), consumer convenience fees and subscription
fees for specific products like soundbox or card machines. Financial Services basically includes
financial gains from lending. Commerce includes a percentage of the transaction value of instances
like ticketing for travel or other entertainment avenues, while cloud involves a fee (subscription and
volume linked) for utilizing cloud and software solutions.

Before moving further to how the future could look like, lets briefly touch upon the expenses as
well for both models. For HDFC bank the expenses are majorly split into 2 categories, the Interest
expended (majorly on deposits) amounting to 43.2% and operating expense at 27.5%. For Paytm,
the expenses are majorly operational in nature split majorly between Payment processing,
employee benefits, cloud and data centres and marketing expenses amongst others. Banks have
been able to keep their expense in control while for now fintech companies like Paytm have
currently been making losses.

Now let us take a closer look at how disruptions can bring shifts to these revenue streams because
of a varied set of factors, starting with an example. Assuming earlier more than 90% of a person’s
savings went directly into savings account, however, now with increase in the knowledge of
personal finance and investing growing among the investor, it is possible that people invest in
smarter ways in banks it has been split into FD’s, RD’s, PPF, Monthly Income Schemes and
National Savings certificates in a definite proportion.

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This leads to the decrease in the difference between Interest earned and Interest Expended, and
hence a main revenue source of Banks gets impacted adversely. This impact is further heightened
with ease and convenience through improvements in technology, like moving amount from savings
to an FD just through some clicks, like discussed earlier, giving higher returns to the customer.
Another scenario can be the amounts individuals want to keep in banks decreases because of
positively performing Debt and Equity markets. Simultaneously, we are witnessing a rise in the
income levels of the country. So as one income group moves forward through smarter investing
and increased sources of income, there is another set of group awaiting to take its position, and
hence supporting cash supply to banks. On the other hand, the fintech space whose major revenue
source relies on transaction fees, is seeing massive shifts which lie at the intersection of
technological advancements and finance. With conversational payments on UPI, UPI Lite X,
wherein payments can be made even when the user's device is offline and a pre-approved credit line
on UPI from Banks, and Tap and Pay, that is essentially making UPI payments by simply tapping
their NFC-enabled device on a merchant's NFC-enabled POS terminal can further boost the usage
of fintech platforms, and thereby revenues. Hence while banks have an interesting challenge in
front of how to keep up their revenue sources at minimal increase in expenses and simultaneously
satisfy a digital-friendly environment, fintech companies would be looking to further ramp up
revenues and initially achieve a breakeven.

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 Blockchain-Based Supply Chain Finance
Rohan (Dhirubhai Ambani International school)

Just take one second of your time and just think about the journey of the origins of coffee beans
that you have in the morning , to the the smartphone in your pocket. These web of transactions
and financial agreements which support the process , is what we refer to as supply chain. In today’s
global economy , supply chain plays a crucial role in ensuring the ease flow of goods. Blockchains
is not merely a buzzword , but is instead a transformative force which reshapes the supply chain
finance. Picture this: What if every product on your store shelf could tell you its life story, from its
origin to its current location, all with the assurance that the information is tamper-proof and
trustworthy? Blockchain-based supply chain finance promises just that. The primary purpose of a
supply chain finance is to ensure the smooth flow of goods and services from suppliers to
consumers by reducing working capital requirements and mitigating financial risks. The timing
discrepancy between customer receipts and supplier payments is addressed by supply chain finance.
By giving suppliers longer payment periods while guaranteeing they get payments on time or early,
it enables organisations to maximise cash usage. Both buyers, who can preserve liquidity and
working capital, and suppliers, who get access to reasonable finance, profit from this arrangement.

You might be unaware of the definition of blockchain. Blockchain, to put it simply, is a distributed
ledger technology that securely, openly, and irrevocably records transactions across a network of
computers. Instead of a centralised authority, blockchain relies on a decentralised network of
computers (called nodes). With a copy of the complete blockchain on each node, redundancy and
resilience are guaranteed. A transaction that a participant starts is then validated by the network
using consensus procedures such as proof of work (PoW) or proof of stake (PoS). Each block in a
chain has a cryptographic link to the one before it. A block's data becomes immutable once it is
included in the chain, making it impossible to alter.

Blockchain technology has substantial benefits on supply chain finance. Since every transaction is
recorded on a shared ledger, which offers real-time visibility across the whole supply chain, it
facilitates transparency. This openness lessens disagreements and builds participant trust.
Blockchain's cryptography methods protects against fraud and guarantee data integrity. You can't
change the records of data, I assure you, no matter how hard you try. Additionally, blockchains
use an agreement known as smart contracts to operate. These smart contracts feature specified
rules that make it possible to automate actions when specific criteria are satisfied. This enhances
efficiency, allowing for seamless payment execution. Cost reductions are produced by automation
and transparency. Businesses may minimise fraud risks, cut back on administrative costs, and
maximise working capital. Products' provenance may be tracked, guaranteeing their authenticity
and high quality. For sectors like the food and pharmaceutical industries, this is extremely
important.

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While blockchains provide a number of benefits, there are also a number of issues that need to be
resolved. First of all, incorporating blockchain into already-in-use supply chain systems can be
difficult and expensive. For legacy systems to integrate with blockchain technology seamlessly,
significant changes might be needed. As blockchain networks must manage a significant number of
transactions in supply chains, scalability is still a problem. Layer 2 scaling is one example of a high-
throughput solution that is still being developed. For seamless communication throughout the
supply chain, ensuring interoperability between various blockchain networks and platforms is
crucial. Although blockchain improves security, it is not impervious to online dangers. Addressing
smart contract weaknesses and potential threats is necessary.

Supply chain financing using blockchain technology is extremely widespread today. IBM Food
Trust is one real-life company that uses blockchain-based supply chain finance. To improve
openness and traceability in the food supply chain, IBM built the IBM Food Trust platform on the
blockchain. It makes it possible for different parties, such as farmers, suppliers, retailers, and
customers, to get access to reliable information about the place of origin and path taken by food
goods. Blockchain technology is used by IBM Food Trust to track and validate food-related
transactions. Participants can follow the journey of food from farm to table while confirming facts
on the origin of ingredients, manufacturing processes, and shipping specifics. By using blockchain,
IBM Food Trust solves a number of issues with the food supply chain, including cutting down on
food fraud, speeding up the process of tracing the origin of tainted items, and increasing consumer
confidence in the food they buy.

Blockchains in supply chain finance are now rather large, but I believe they have a lot of room for
development. I predict that blockchain will soon be widely used throughout a variety of supply
chains, from the pharmaceutical to the electronic industries and beyond. Physical assets, including
goods and inventory, will increasingly be tokenized. These digital tokens, which can be traded on
platforms based on the blockchain, will reflect ownership or rights inside supply chains.
Decentralised lending, borrowing, and asset management inside supply chains will be made possible
by the fusion of DeFi solutions with supply chain finance. Smaller enterprises will be able to use
cutting-edge supply chain finance tools thanks to blockchain platforms' supply chain-as-aservice
offerings. The advent of blockchain signals a new era in supply chain financing. It has the ability to
completely transform how organisations manage their financial transactions and work across global
supply chains thanks to its capacity for openness, efficiency, and trust. The unchangeable ledger of
blockchain assures that every step, every transaction, is engraved in history, beyond the reach of
tampering or manipulation, as we negotiate the complex web of business and logistics. With every
day that goes by, we get a little bit closer to a supply chain finance environment with less
disagreements, lower costs, and lots of confidence. Welcome to a world where supply chain
financing is more connected, effective, and safe thanks to blockchain technology.

22 PAGE
 Striking Gold: The Financial Triumph of Athlete Branding
Rajat S Panday, IIM Mumbai

In the world of sports, the journey from the game to the hearts of fans is difficult and many a times
convoyed by immense talent, commitment, and the ability to leave a mark in the history of sports.
However, in today's age, the success of an athlete is no longer dependent only on is performance in
the filed but it extends far beyond, into the kingdom of personal branding. The concept of athlete
branding, has become a very important aspect in the long-term success of any athlete. This article
dives into the arena of financial aspects of athlete branding, drawing inspiration from iconic figures
like Virat Kohli, Sachin Tendulkar, and Cristiano Ronaldo, while also exploring the wisdom of the
Bhagavad Gita to shed light on its fundamental principles that underpin this financial journey.

Defining Athlete Branding

Athlete branding is not only about showcasing talent on the field but it's about making identity that
resonates with the spectators. Just as a masterful stroke can win a cricket match, a well-defined
personal brand can secure a place in the hearts and minds of fans for years to come. Take, for
instance, the iconic Virat Kohli, whose aggression, consistency, and leadership qualities have become
identical with his personal brand. Virat's brand, 'One8', stands as a testimony to his multifaceted
approach, surrounding not only cricket but also diverse segments like fashion and lifestyle. With so
diversified brands, athletes have significantly contributed towards their overall wealth.

The Power of Purpose

In the Bhagavad Gita, Lord Krishna imparts the wisdom of dharma, emphasizing the importance of
fulfilling one's purpose, and athletes who align their personal brand with a higher purpose often find
financial success follows suit. Successful athletes leverage their talents not only to achieve victory on
the field but also to make a positive impact on society.

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Sachin Tendulkar's involvement in social causes exemplifies this principle. Just as Lord Krishna
guided Arjuna to fulfil his duty on the battlefield, athletes channel their prowess into creating a
meaningful personal brand that resonates with their purpose.

Consistency and Integrity

The Bhagavad Gita speaks of the significance of steadfastness in actions and thoughts. Athletes who
build enduring personal brands display unwavering consistency, both in their performances and in
their interactions with fans and sponsors. Integrity is a very vital aspect in creation of a powerful
brand. Just as Lord Krishna advises Arjuna to stand by his principles, athletes like Cristiano
Ronaldo stand by their beliefs and values, which in turn forms the core of their personal brand.
Ronaldo saying no to endorsing Cola, Sachin Tendulkar and Adam Gilchrist walked off on many
occasions when umpire didn't give them out, are some examples where athletes adhere to their beliefs
and values, which in turn, forms the core of their personal brand. Such decisions may lead to
exclusive and high-value endorsement opportunities, ultimately boosting an athlete's financial
portfolio.

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Engagement and Connection
Athlete branding goes beyond endorsements; it's about forging genuine connections with fans. Social
media has become a powerful tool for athletes to engage and interact with their audience. This aligns
with the Bhagavad Gita's teachings on selfless action and dedication. Athletes who use their platform
to connect with fans exemplify the concept of selflessness, finding joy in sharing their journey and
inspiring others. This engagement is not only fulfilling on a personal level but can also be financially
rewarding.

Embracing Change
In the Bhagavad Gita, Lord Krishna emphasizes the inevitability of change. Similarly, athletes must
adapt to the evolving landscape of sports and branding. Just as Virat Kohli evolved from a young
talent to a dynamic captain, athletes must embrace change to ensure their personal brand remains
relevant and impactful. The realm of sports and branding is a landscape that witnesses rapid
evolution. From technological advancements to shifts in audience preferences, the playing field is
ever-changing. Athlete branding, too, is subject to these currents of change. Just as an athlete refines
their skills to excel in diverse formats of the game, they must also fine-tune their personal brand to
resonate with the shifting sensibilities of their audience. The Bhagavad Gita's teachings on change
offer athletes a guiding light. As Arjuna found clarity through Krishna's guidance, athletes can find
direction in being proactive and foresighted. By embracing change and adapting to new
circumstances, athletes can ensure that their personal brand remains a beacon and financially
rewarding opportunities.

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Learning from Examples: Ronaldo, Tendulkar, and More
Cristiano Ronaldo's ability to translate his prowess on the field into a valuable personal brand
showcases the effectiveness of athlete branding. Ronaldo's core values, strong associations, and
diverse business ventures illustrate the power of managing a personal brand strategically. Similarly,
Sachin Tendulkar's post-retirement endeavours, including his brand 'ST', demonstrates how athletes
can continue to benefit financially from their personal brand long after retirement. The 'ST' brand
not only signifies Sachin Tendulkar's initials but also stands as a testament to his enduring legacy.

Conclusion
Athlete branding is a journey that transcends the boundaries of the game. It involves aligning one's
actions with their purpose, upholding integrity, engaging authentically with fans, and embracing
change. The financial rewards of athlete branding can be seen from the narratives of athletes like
Virat Kohli, Sachin Tendulkar, and Cristiano Ronaldo exemplify the power of personal branding in
creating lasting legacies. As the Bhagavad Gita teaches, actions rooted in purpose, consistency, and
genuine connection can lead athletes to build personal brands that stand the test of time, inspiring
generations and leaving an indelible mark on the world beyond the game. Just as Virat Kohli's brand
'One8' encapsulates his diverse talents, athletes can draw inspiration from these legends to build
personal brands that transcend the boundaries of sports and leave a lasting legacy. Just like
Ronaldo's shrewd business ventures and Tendulkar's 'ST' brand, athletes have the potential to make
their personal brands a beacon of success beyond their playing days.

26| PAGE
References

Images
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same-in-cricket-and-startups-c9e4052e248d

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