MUMBAI, NEw DELHI, BENGALURU, kOLkATA, CHENNAI, AHMEDABAD, HyDERABAD, CHANDIGARH*, pUNE* VOL. 5 NO.

210

Friday, September 2, 2022

livemint.com

mint primer QUICK EDIT

Is the latest GDP We can’t

growth data an look away
China’s detention in special
underestimate? camps of Uyghurs claimed to be
an educational exercise aimed
at instilling Chinese values and
BY PRAGYA SRIVASTAVA reducing the risk of Islamist
The Indian economy grew 13.5% in the June quarter, much lower than radicalism among people who
the central bank’s forecast of 16.2%. While a low base has made profess Islam, has been taken
interpreting the data difficult, another factor may have led to a grim note of by the United
distortion: the government’s deflation method. Mint explains: Nations’ human rights office,
which said it may “constitute
Growth Dynamics international crimes, in particu-
The large gap between WPI and CPI inflation could have led to an underestimation. lar crimes against humanity.”
Nominal Real Year-on-year GDP growth (in %) Year-on-year inflation (in %)
The foreign ministry in Beijing
20 reacted with fury, labelling the
32.4 CPI WPI
Q1 FY22
20.1
UN office a “thug and accom-
15 plice of the US and the West
Q2 FY22
19.0 13.93 against the vast majority of
8.4
10
7.59
developing countries.” The
Q3 FY22
15.7 Chinese protest needs to be
5.4 5 6.71 taken with a pinch of salt, and its
3.52
Q4 FY22
14.9 attempt to play the anti-imperi-
4.1 0 alist card with a big lump of it.
Q1 FY23
26.7 Reports suggest as many as 1
13.5 -5
Jan 2020 Jul 2022 million Muslims have been held
Source: CMIE against their will under condi-
SATISH KUMAR/MINT tions that are unsalutary at best
What does the latest How does deflation and horrific at worst, as leaks
1 GDP data tell us?
Not much. The year-on-year GDP
2 come into the picture?
The statistics ministry first
from within show. While non-
intervention in any country’s
growth was 13.5% in the June- calculates economic output at internal affairs has been a global
ended quarter, up from 4.1% the “current prices”, which are price principle, gross human rights
previous quarter. But thanks to a levels that we see in everyday life. deprivations clearly violate
low base, the figure only gives an But some of this growth may be international law. Beijing must
optical illusion of high growth. To just because of inflation. So, the not get away with its disregard
this end, a comparison with pre- ministry also reports an adjusted
of commitments to assure
pandemic level (April-June 2019) “real” GDP by stripping off the
reveals that GDP has managed to impact of inflation to arrive at everyone a life of basic dignity
reach only 4% higher in the past “GDP at constant prices”. For and liberty. Its Uyghur policy is
three years. Moreover, the growth example, the GDP at current prices an unsettling omen of what
was much lower than RBI’s in Q1 was ₹64.95 trillion, up 26.7% China’s ascent could mean.
projection of 16.2%. While a low year-on-year. After adjusting for
base has bumped up the numbers, inflation, real GDP came out to be
another factor, which has more to ₹36.85 trillion, a growth of 13.5%.
do with the statistical metho- The big difference was due to high
dology, may have led to the under-
estimation of the figures. It is the
inflation during the quarter:
wholesale prices were up 15.7%
MINT METRIC
usage of ‘single deflation’. and retail prices 7.3%. by Bibek Debroy
BLOOMBERG

In California, a 911 call -

3 How are current
prices deflated?
There are two ways: single deflation and
Was calamity about to befall?
double deflation. Single deflation uses a
A sheriff’s office on high alert,
common price deflator to adjust both But there was nothing to avert,
input and output prices, while double
deflation uses two different deflators for
Caller a capuchin monkey having a ball.
them. India uses a mix: double deflation for
agri-culture, and mining and quarrying;
and single deflation for other sectors. This
is a unique method used in India.
QUOTE OF THE DAY
The original Novovax vaccine
4 So, was Q1 GDP an
underestimate?
Most likely. That’s because the
5 What does the
future look like?
With crude oil prices cooling, both
Covovax covers omicron and
GDP deflator roughly reflects 70% WPI and CPI inflation have
there is good data for it.
of the Wholesale Price Index and moderated. However, the gap We will try to launch
30% of the Consumer Price Index. between the two remains fairly
The former measure of inflation large, even though it has come
Omicron-specific vaccine
was sharply higher during Q1. down from an average of 8.5 after six months.
“With rising commodity prices, percentage points in April-June to
input prices grew much faster than 7.2 percentage points in July. This
output prices, leading to a likely may again lead to an under-
underestimation of GVA growth,” estimation in Q2, unless a plunge
HSBC Global Research said. The in WPI inflation closes the gap, ADAR POONAWALLA
limitation of single deflation is that since CPI inflation is not expected CEO, SERUM INSTITUTE
it opens the door to over- to rise further from the current OF INDIA
estimation or underestimation level. Faster pass-through of input
when input and output prices are prices (WPI) to output prices (CPI
rising at vastly different paces. may also limit underestimation.

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things tech. Privacy concerns, The core principles of investing. Look no Sruthijith K.K. speaks with business
new Windows 11, further. In this leaders, not only
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cast packed with all-encompassing issues, including India’s economy ces, and their journey. Through the
information from the ever-changing and its challenges, and even the next conversations, the podcast aims to
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 PLAIN FACTS

Data recap: RIL’s AGM,

GDP, Adani’s wealth
CURATED BY SHUJA ASRAR

E very Friday, Plain Facts publishes a compilation of data-based insights, complete with easy-to-read charts, to help
you delve deeper into stories reported by Mint in the week gone by. The gross domestic product (GDP) grew by 13.5%
year-on-year in the June-ended quarter. Gautam Adani overtook France’s Bernard Arnault to become the third richest
person in the world. In Pakistan, nearly 33 million people have been affected by the worst floods in a decade.

Base Effect Galloping Away

India's GDP growth for June quarter (QoQ) (in %) The world's five richest persons
Jun 2012 Jun 2015 Jun 2018 Jun 2022 Net worth in $ bn Change in rank in 2022 Rank
0
245
-5
115 5 Elon Musk
Bill Gates 1 (US)
(US)
-10
-9.63 1
150
-15 2 Jeff Bezos
135 4 (US)
-20 Bernard Arnault
(France)
-25 1 3 143
Gautam Adani
-30 (India)
Source: CMIE Source: Bloomberg 12

THE INDIAN economy grew by 13.5% y-o-y in the first GAUTAM ADANI overtook France’s Bernard Arnault
quarter of FY23, fuelled by growing consumption and to become the third richest person in the world this
low base effect, according to the latest data released by week on the Bloomberg Billionaires Index. With a net
the government on Wednesday. However, the figures are worth of $143 billion, Adani trails only Elon Musk ($245
warped by the base effect because of the Delta variant-hit billion) and Jeff Bezos ($150 billion). He added $66.2
June quarter of last year. Sequentially, the quarter saw a billion to his fortune in 2022, five times more than any
9.63% contraction in GDP. While that’s typical for the other billionaire. Adani’s climb to the top was expedited
June quarter, this was the biggest contraction in at least a in February when he overtook Mukesh Ambani to
decade (excluding the last two pandemic-hit years). become the richest person in Asia.

Pakistan’s Misery

33
THAT’S THE number of people affected by the floods in
Pakistan, described as the worst in a decade, which have
claimed 1,000 lives and left 1,500 injured. According to the
government, nearly one-third of the country has been

million completely submerged. The floods have caused extensive

damage to property, livestock and crops. Khyber
Pakhtunkhwa in the northwest and Sindh province in the
south are the worst-hit regions.

Ambani’s Ambitions Rupee Rebounds

How Reliance Industries and Sensex performed on AGM day 72
RIL Sensex 73.05
(change in %) Rupee/$
2014 74 (Inverse scale)
2015
2016 76
2017
2018 78
2020
2021 80
-1.46 -0.84 79.55
2022
82
-4 -2 0 2 4 10 Jun 2021 1 Sep 2022
AGM: Annual General Meeting; 2019 AGM was held on market holiday Source: Bloomberg
Source: BSE India

RELIANCE INDUSTRIES Ltd (RIL) held its 45th THE RUPEE surged to 79.45 against the US dollar on
annual general meeting on Monday where the company Tuesday, posting its biggest one-day gain of 0.6% in a
spelt out an ambitious growth plan. The group plans to year. This followed the return of overseas investors who
invest ₹2 trillion to set up a 5G network across India and infused as much as $6 billion in August, the highest
has earmarked ₹75,000 crore to expand its since December 2020. The currency had hit a record
petrochemical capacity. RIL chairman Mukesh Ambani low of 80.13 on Monday following the statement by US
laid out his succession plans, too. RIL shares declined on Federal Reserve chairman Jerome Powell that the
the AGM day, but outperformed the benchmark index, central bank is ready to arrest high inflation even at the
only the third such instance over the last decade. cost of economic growth.

Fiscal Progress

20.5%
THIS WAS India’s fiscal deficit in the April-June quarter
as a percentage of the full-year Budget estimate. Last year,
the government had clocked a fiscal deficit of 21.3% of the
full-year estimate by June, government data showed. The
total receipts in the June quarter were ₹7.86 trillion, or
34.4% of the Budget estimate for 2022-23, and the overall
expenditure was ₹11.27 trillion, or 28.6% of the Budget
estimate.

Fraud Alert Chart Of The Week: EV Sales

Number of reported incidents of fraud Number of vehicles sold
Bank ATMs Credit/Debit cards 2020-21 2021-22
4,000

3,000
41,046
Electric
two-wheelers
231,338
2,000

1,000 4,984
Electric
four-wheelers
0 17,802
2017 2021 2017 2021 2017 2021
Source: National Crime Records Bureau Source: Federation of Automobile Dealers Associations of India

CREDIT AND debit card-related frauds surged by SALES OF electric vehicles (EVs) picked up in both the
nearly 20% in 2021, according to a report released by two- and four-wheeler segments in 2021-22. The sale of
the National Crime Records Bureau (NCRB). The two-wheelers showed an increase of nearly sixfold,
number of such frauds has nearly doubled in the last while four-wheeler sales increased by
two years. The surge in the number of economic more than three times. The surge is led
offences has prompted the Reserve Bank of India to by the launch of several EV models in
contemplate setting up a fraud registry. However, bank- both segments.
and ATM-related frauds fell by 20.8% and 1.5%, Follow us on #MintCharts on our
respectively in 2021. social media handles.
PARAS JAIN/MINT

PEANUTS by Charles M. Schulz

 MuMbAI, NEw DELHI, BENGALURU, kOLkATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE* VOL. 5 NO. 210 Rs 6.00 16 PAGES

Friday, September 2, 2022

GDP racing ahead? Sorry, Manufacturing PMI robust in

livemint.com consumers aren’t buying ituP10 August as demand spikes uP2

SENSEX 58,766.59 770.48 NIFTY 17,542.80 216.50 DOLLAR ₹79.56 ₹0.10 EURO ₹79.78 ₹0.06 OIL $94.09 $1.63 GOLD ₹50,243 ₹743

Govt to draw line on Airtel Africa aims

to be continent’s
ArcelorMittal,
Brookfield,
CPPIB eye stake
DON’T MISS

freebies for doctors biggest telco: CEO in NTPC Green

Rituraj Baruah & Subhash Narayan
NEw DELHI
Centre working on defining what is acceptable as a gift from pharma firms Gulveen Aulakh

C
gulveen.aulakh@livemint.com anada Pension Plan
NEw DELHI Investment Board Moody’s cuts India’s growth
Priyanka Sharma (CPPIB), Brookfield, forecast for 2022 to 7.7%
quID PRO quO
A
priyanka.sharma@livemint.com irtel Africa has set its ArcelorMittal and 10 others Moody’s on Thursday sharply lowered
NEw DELHI sights on beating the have shown interest in buying India’s economic growth forecast for
continent’s No.1 telecom a minority stake in NPTC 2022 to 7.7% from 8.8% estimated earlier,

T
he government is tighten- operator MTN to become its top Green Energy Ltd, a unit of citing monetary policy tightening, uneven
ing rules to bar drugmak- telco, more than a decade after India’s largest power pro- distribution of monsoon rains and slowing
ers from offering expen- exploring—and abandoning—a ducer, an official aware of the global growth. >P3
sive goodies to doctors, merger plan with the company. development said.
from all-expense-paid In his first interaction with the The state-run company has Coming festive sales vital for
trips to conferences to watches, to Indian media, Airtel Africa man- received expressions of inter- lifting business confidence
encourage them to prescribe certain aging director and chief execu- Airtel Africa MD and CEO est (EoI) in the past couple of
Manufacturers are brimming with optimism. In
drugs, two government officials tive Olusegun Ogunsanya said Olusegun Ogunsanya. months. the run-up to the festive season, expectations
familiar with the development said. the telco, which operates in 14 “We have to raise around are high among manufacturers in sectors such as
Officials from the health ministry, countries, has captured the top ity of writing off interest expense ₹2,000 crore. We are working automobile and consumer durables. Business
department of pharmaceuticals and spot in four and is No. 2 in nine against revenues. So we won’t be on it, and the successful bidder activity in the sector softened a bit in August, but
the National Medical Commission, others. Ogunsanya also spoke of taking on any long-term foreign will be selected in the next few encouraging data points keep spirits high. >P4
among other departments, will define the company’s drive for profita- currency debt. We’ve prepaid months,” the official said on
what is acceptable as a gift from bility and cost reduction. Edited $450 million of the $1 billion the condition of anonymity. Durex condom maker Reckitt
pharma companies. For example, they excerpts: bond outstanding, leaving only NTPC may sell as much as
may allow doctors to accept inexpen- Would you call Airtel $550 million, which we will try to 26% but has not decided on the
announces surprise CEO exit
CLOSING THE GAPS
sive trinkets, such as a company- Africa’s debt position com- prepay earlier than the March final quantum of the stake sale. Reckitt Benckiser chief executive officer
NEw rules may allow All-expense-paid trips GOVt is exploring ways
branded pen, but ban paid hotel stays. fortable? 2024 deadline. Queries sent to NTPC, Laxman Narasimhan will step down at the
inexpensive trinkets, to hotel stays and watches to deter doctors from end of September after three years in the
The money spent by drugmakers such as a branded pen may be disallowed accepting any freebies When we did our IPO in 2019, What kind of upside are you NTPC Green Energy, CPPIB,
role, the company said on Thursday, taking
on marketing medicines to doctors the leverage was 3X, and now it’s expecting in Africa? ArcelorMittal and Brookfield investors by surprise and sending its share
has become the target of scrutiny after 1.3X—that’s a There are remained unanswered till price down sharply. >P9
the Central Board of Direct Taxes aimed at cutting financial ties pharma companies on gifts to promote very comforta- three clear indi- press time.
alleged that Micro Labs, the maker of between firms that make medicines any drug is already in place but not ble position for a m INTERVIEW ces, which show After the successful sale of a
fever drug Dolo, spent ₹1,000 crore and doctors who prescribe them. enforced strictly. “Since 2015, we have mobile network a very long run- minority stake, the public sec- Global VPN providers pull India
on gifts to doctors during the pan- “The government is exploring ways Uniform Code for Pharmaceutical Mar- operator to be in. We’ve got a way to growth. Firstly, the level of tor company will also consider servers over new cyber rules
demic. The company dismissed the and means to create more deterrence keting Practices (UCPMP) to prevent twin policy: one, reducing for- SIM card penetration in Africa is an initial public offering for Major global providers of virtual private
allegations as baseless and claimed it among doctors, so they do not accept pharmaceutical companies from eign currency debt at the hold co still south of 50%. Secondly, the NTPC Green. networks, which let internet users shield
spent no more than ₹5-6 crore annu- any freebies from pharma companies unethical marketing practices. How- (holding company) since we fastest growing population in the The initial share sale is their identities online, are shutting down
ally promoting Dolo. to promote any drug. A report is being ever, for medical professionals, we have don’t have revenues getting gen- world and thirdly, the consump- expected in the next financial their servers in India to protest new
While rules against gifting doctors prepared,” one of the two officials the Indian Medical Council (Profes- erated, and two: moving debt to tion of minutes is between 199- year, the official said. government rules they say threaten their
exist, they are often flouted. The lat- said, requesting anonymity. local op cos (operating compa- customers’ privacy. >P8
est move by the government is A uniform code of conduct for TURN TO PAGE 6 nies) where we have the flexibil- TURN TO PAGE 6 TURN TO PAGE 6
02 Friday, 2 SepteMber 2022
MuMbai ECONOMY & POLICY LIVEMINT.COM

m MINT SHORTS
POSCO to make green hydrogen,
Manufacturing PMI robust India’s
unemployment
rate zooms to
signs MoU with Greenko ZeroC
New Delhi: Global steelmaker POSCO on Thursday signed a
memorandum of understanding (MoU) with ZeroC, a subsidiary
of renewable energy company Greenko to make green hydrogen,
in August as demand spikes 1-year high of
8.3% in August
and to jointly pursue opportunities in renewables, and other deriv-
atives of green hydrogen. In a joint statement, both the companies PTI
said that this MoU will contribute towards the mission of making feedback@livemint.com
India a green hydrogen hub. SAURAV ANAND Indian manufacturers continued to benefit from the easing of the pandemic MUMBAI

I
ndia’s unemployment rate
M.V. Iyer assumes additional Dilasha Seth However, the passing of higher surged to a one-year high of
dilasha.seth@livemint.com freight, labour and material prices to 8.3% in August as employ-
charge as GAIL CMD BENGALURU clients kept the pace of increase in ment sequentially fell by 2 mil-
output prices at nearly the same level lion to 394.6 million, according

M
anufacturing remained as in July. to data from the Centre for
robust in August with India’s retail inflation had eased to a Monitoring Indian Economy
strong growth in out- five-month-low of 6.71% in July, fall- (CMIE).
put and new orders led ing below the 7% mark for the second During July, the unemploy-
by a pick-up in demand straight month. However, this was still ment rate was at 6.8% and the
after the withdrawal of pandemic-in- over the Reserve Bank of India’s upper employment was 397 million,
duced restrictions, a private survey tolerance band of 6% for the seventh the CMIE data added. “The
said. month in a row. RBI has projected urban unemployment rate is
Inflationary pressures eased during inflation for 2022-23 at 6.7%. usually higher at about 8% than
the month amid easing of global com- The wholesale price index-based the rural unemployment rate,
modity and energy prices, “substan- inflation also moderated to a five- which is usually around 7%. In
tially” improving business confidence. month-low in July. August the urban unemploy-
New Delhi: M.V. Iyer, director (Business Development) has The S&P Global India Manufactur- “Firms welcomed the weaker ment rate shot up to 9.6% and
assumed additional charge as chairman & managing director ing purchasing managers index (PMI) increase in input costs and upward rural unemployment rate also
of GAIL (India) Limited. An electrical engineer, Iyer has 35 edged lower to 56.2 points in August revision to output forecasts amid increased to 7.7%,” CMIE MD
years of rich and diverse experience in GAIL in projects exe- from an eight-month high of 56.4 renewed hopes that contained price Mahesh Vyas told PTI.
cution. “He has been part of the core team of GAIL for imple- points in July, but this still signals the Manufacturers attributed the fastest improvement in production to higher sales, pressures will help boost demand. Vyas said erratic rainfall
mentation of various long term and short term strategies in second-strongest improvement in recent efforts to enhance capacities. MINT Inflation concerns, which had damp- affected sowing and this is one
GAIL,” the company said in a statement. SAURAV ANAND operating conditions since last ened sentiment around mid-year, of the reasons for the increase
November. It is the 14th straight S&P Global Market Intelligence. jections for the year ahead. appear to have completely dissipated in unemployment in rural
month of growth. Sustained improvement in demand Manufacturers attributed the fastest in August as seen by a jump in business India.
India’s first cervical cancer vaccine A reading over 50 denotes expan- conditions boosted new order intakes improvement in production to higher confidence to a six-year high,” said De The unemployment rate in
sion, and below it con- sales, recent efforts to Lima. rural India rose from 6.1% in
launched; to be priced ₹200-400 traction. HIGH ON MANUFACTURING enhance capacities, The survey comes a day after official July to 7.7% in August. More
New Delhi: The Central government on Thursday launched “Indian manufactur- fewer covid-19 restric- data showed that India’s economy importantly, the employment
India’s first vaccine against cervical cancer. The Quadrivalent ers continued to benefit PMI edged lower to THIS is the second- VOLUMES were led tions and product diver- expanded well below expectations at rate fell from 37.6% to 37.3%.
Human Papillomavirus vaccine (qHPV) has been developed by the from the absence of Cov- 56.2 points in August strongest
from an eight-month improvement in
by a pick-up in
exports and upbeat
sification. 13.5% during the first quarter, with “Going forward, the rural
Serum Institute of India and the Department of Biotechnology. id-19 restrictions, with high of 56.4 points in operating conditions projections for the Production also bene- dismal performance of the manufac- unemployment rate may come
According to the Serum Institute, the vaccine is likely to cost ₹200- rates of growth for both July since November year ahead fited from easing of cost turing sector. down as delayed monsoon will
400 per dose. Adar Poonawalla, CEO, Serum Institute of India, output and new orders price pressures during The RBI-led monetary policy com- increase agricultural activities
said, “We will announce the price of the vaccine in a few months. picking up yet the month. Input cost mittee had projected a 16.2% gross towards the end of the mon-
It will be around ₹200-400. We will start production by November again…This robust performance was by Indian manufacturers during inflation slipped to the lowest in a year domestic product growth for Q1. The soon season. However, it is not
and December and final decision on rates will be discussed with the complemented by a fourth successive August, pushing output growth to a amid softer pressures from commod- national accounts data released on clear how the urban unemploy-
government.” PRIYANKA SHARMA monthly slowdown in the rate of input nine-month high. ity prices. Factory gate charges rose at Wednesday, however, showed that ment rate will play out in the
cost inflation,” said Pollyanna De Manufacturing volumes were led by the second-weakest pace since the private consumption revived sharply coming months. Currently, it is
Lima, economics associate director at a pick-up in exports and upbeat pro- start of this fiscal year. during the quarter. quite elevated,” Vyas added.
CIL’s supply to power sector at
108% of target during Apr-Aug
Customs collection GST revenue over ₹1.43 tn in August
dips by 12% in July Gireesh Chandra Prasad
gireesh.p@livemint.com
Central and state authori-
ties have been taking a host of
NEW DELHI steps including tighter
Dilasha Seth persistent global economic reporting requirements and

C
dilasha.seth@livemint.com uncertainty and a tightening entral and state gov- data analytics to check tax
BENGALURU monetary policy environment, ernments collected evasion and abuse of tax cred-
which may affect private sector over ₹1.43 trillion in its.

D
espite a windfall tax on capital expenditure going for- Goods and Services Tax (GST) This has helped increase
crude production and ward. The first quarter gross in August, showing a 28% the number of people filing
New Delhi: Coal India (CIL)’s supplies to power sector rose imposition of export domestic product growth came jump from a year ago. In tax returns as well as the reve-
to 243.3 MTs in April-August against the annual action plan taxes on fuel, the Centre’s in at a lower-than-expected August 2021, the GST mop-up nue collected. Improvement
(AAP) target of 225.4 MTs, the company said in a statement excise duty mop up contracted 13.5%. was ₹1.12 trillion. in revenue receipts is a big
on Thursday. Coal stocks at power generating plants rose to by 26% in July. Excise duty collection for GST revenue collection has relief for state governments
about 30 million tonnes in August, dispelling fears of shorta- Customs duty collections July stood at ₹23,919 crore, remained over the ₹1.4 trillion which will not be receiving
ges of dry-fuel during the monsoon season, the company also declined by 12% in July compared to ₹30,402 crore in mark for six months in a row, GST compensation from the
said. SUBHASH NARAYAN amid suspension of duty on the previous month, and as per the finance ministry. central government from July
cotton and concessional duty ₹32,480 crore in the corre- Among major states, Pun- The Centre collected ₹54,234 crore in central GST while states 2022 after the five-year tran-
on edible oil. The sponding month jab, Haryana, Delhi, Gujarat collected ₹56,070 crore as state GST in August. PTI sition period in the new tax
Equitas SFB hikes domestic FD, NRE decline comes Direct tax last year. and Maharashtra reported regime.
despite the fact Incidentally, double digit growth in tax col- domestic transactions includ- Tax buoyancy or the pace at According to Saurabh
rates in special offer collections have
that merchandise grown by a stellar this was first lection, showing robust con- ing import of services was 19% which tax revenue grows Agarwal, tax partner at EY,
New Delhi: Equitas Small Finance Bank on Thursday announced imports are at a 42% while indirect month of addi- sumption trend. August col- higher compared to receipts compared to the economic while GST revenue receipts
raising fixed deposit (FD) interest rates on domestic and Non Resi- record high level
tax mop up grew tional taxes on the lections are for sales that took from these sources in the growth rate indicates effi- remain above ₹1.4 trillion for
dent Indian (NRE)/ Non Resident Ordinary (NRO) accounts in a of over $60bn for fuel sector. On 1 place in July. same month last year. ciency in revenue collection. six consecutive months, the
special week-long offer, from 1 September to 7 September, as the the past four by 10% during the July, the Centre In July, 76 million e-way “For six “This is a clear decline in cess collections by
bank marks its seventh year of operations. LIVEMINT months. April-July period i m p o s e d an bills—electronic permits months in a row GST revenue impact of various nearly 7% compared to July
While direct export duty of ₹6 needed for goods shipment now, monthly collection has measures taken collections indicated
tax collections per litre on petrol within and across states— GST revenues remained over by the GST decreased demand for goods
Concessional customs duty on have grown by a stellar 42%, and air turbine fuel and ₹13 a were generated. This is mar- have been more the ₹1.4 tn-mark Council in the such as automobiles, ciga-
indirect tax mop up grew by litre on diesel. Additionally, a ginally higher than June’s 74 than the ₹1.4 tril-
for six months in a past to ensure
rettes and aerated beverages.
imported edible oil extended 10% during the April-July windfall tax of ₹23,250 per million. lion mark. The better compli- Abhishek Jain, partner,
New Delhi: The finance ministry has extended concessional basic period, dragged down by the tonne was imposed on the sale After settlements, the Cen- growth in GST row, as per the ance. Better indirect tax at KPMG in India
customs duty and agriculture and infrastructure development cess contraction in customs duty of domestic crude. These were tre collected ₹54,234 crore in revenue till finance ministry reporting cou- said that the consistently high
applicable on edible oils by six months till end of March 2023, and excise collection compared reviewed on 20 July, when the central GST while states col- August 2022 pled with eco- GST collections indicated an
showed an official order. The government had in October 2021 to the corresponding period ₹6 per litre duty on petrol lected ₹56,070 crore as state over the same nomic recovery upward economic trajectory
announced concessional import duty on crude soybean oil, crude last year. exports was scrapped and the GST in August. period last year is 33%, con- has been having positive despite fluctuating covid
palm oil and crude sunflower oil till March 2022, which was once This may lower the govern- tax on the export of diesel and During the month, revenue tinuing to display very high impact on GST revenues on a cases and better compliance
extended till end of September. This has now again been extended ment’s ability to spend and jet fuel was cut to ₹11 and ₹4 from import of goods was 57% buoyancy,” said an official consistent basis,” the ministry being ensured by the govern-
till next March, as per the order. GIREESH CHANDRA PRASAD boost economic growth amid respectively. higher and revenue from statement. said. ment.

‘Private hospitals avoid Ayushman Bharat PMJAY, citing low charges’ CORRECTIONS AND
CLARIFICATIONS
Mint welcomes comments,
Priyanka Sharma Ayushman Bharat aims to PMJAY, both private and gov- gold certificates are issued to that their bills be cleared on suggestions or complaints
priyanka.sharma@livemint.com cover over 100 million poor ernment, as this will eventually the hospitals as per their quality time,” said Dr Girdhar Gyani, about errors.
NEW DELHI and vulnerable families, or help poor people in getting free performances, award to best Director General, Association
Readers can alert the
around 500 million individu- and cashless treatment. performing hospitals and doc- of Healthcare Providers of
newsroom to any errors in the

A
uthorities are trying to als, providing a coverage of up “However, most of the pri- tors, imparting training to doc- India (AHPI) paper by emailing us, with your
“motivate” more private to ₹5 lakh per family per year vate hospitals find treatment tors on standard treatment “Most of the private hospitals full name and address to
hospitals to join the for secondary and tertiary care package rates very low and that guideline and focused on empaneled under PMJAY are feedback@livemint.com.
government’s flagship health hospitalization. seems to be the reason that it smoothening the empanel- small hospitals. PMJAY needs
scheme Ayushman Bharat So far, over 37 million hospi- does not interest most of these ment process. These are the giant private hospitals because It is our policy to promptly
respond to all complaints.
PMJAY, targeting a sector tal admissions have been private healthcare providers,” some of the activities we have smaller hospitals cannot pro- Readers dissatisfied with the
that’s stayed away saying per- authorized under the scheme, said another official at NHA. taken to encourage hospitals,” vide tertiary care procedures. response or concerned about
missible charges are too low. at a cost of ₹45,000 crore to the So far, over 37 million hospital admissions have been authorized “Regular meetings with top said a third official. Besides, most of the small pri- Mint’s journalistic integrity may
As of now, PMJAY has a net- exchequer. “Onboarding of under Ayushman Bharat scheme. HT corporate hospitals are being “The government invited us vate hospitals in the states are write directly to the editor by
work of 25,000 empaneled large number of private hospi- held to motivate them. Some of recently and I cited our experi- also not getting incentives. sending an email to
hospitals—both private and tals has always been an objec- and encouraged them to par- safeguarding the lives of the them were facing issues of ence with Central Government PMJAY should also revise the asktheeditor@livemint.com
public—with a 42% (11,000) tive of National Health Author- ticipate in PMJAY scheme,” beneficiaries and shielding delay in claim process settle- Health Scheme (CGHS) where package rates which are very Mint’s journalistic Code of
share of private healthcare pro- ity. Recently, the health minis- said a health ministry official their families from catastrophic ment, so we streamlined it and a lot of hospitals have their out- low.” Conduct that governs our
viders. They offer nearly 2,000 ter took stock of the process requesting anonymity. health related expenditure. We started Green Channel Pay- standing bills. Similarly, in the Queries mailed to the health newsroom is available at
treatment procedures across 27 and held a meeting with multi- “Ayushman Bharat PMJAY encourage more and more hos- ment initiatives, quality initia- case of PMJAY most of the big- ministry spokesperson did not www.livemint.com
specialities. ple leaders of private hospitals has succeeded in the mission of pitals to get empaneled under tives in which bronze, silver, ger hospitals are not confident elicit a response.

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LIVEMINT.COM CORPORATE Friday, 2 SepteMber 2022
MuMbai 03

Moody’s cuts India’s Car production jumps 26% in Adani Ent

growth forecast replaces
for 2022 to 7.7% Aug even as retail sales lag Shree
Cement in
Dilasha Seth
dilasha.seth@livemint.com
BenGAluru
Goldman, Nifty 50 rejig
too, lowers The festive season accounts for about a quarter of the Indian automobile industry’s annual sales Bloomberg

M
oody’s on Thursday
sharply lowered feedback@livemint.com
India’s economic GDP growth Alisha Sachdev new Delhi
growth forecast for 2022 to alisha.sachdev@livemint.com
Reuters

A
7.7% from 8.8% estimated ear- new Delhi dani Enterprises Ltd.,
lier, citing monetary policy feedback@livemint.com the flagship company of

D
tightening, uneven distribu- omestic dispatches of passenger Asia’s richest man,

G
tion of monsoon rains and oldman Sachs vehicles in August rose 26% from Gautam Adani, has become the
slowing global growth. has revised a year ago to over 390,000 units, second unit of the ports-to-
It also lowered the forecast lower its growth as automakers ramped up production to power conglomerate to be
for 2023 to 5.2% from 5.4% esti- projections for India stock dealerships ahead of festive sea- included in one of India’s key
mated earlier. However, it after the April-June son. equity gauges as the group
pointed out that economic quarterly gross domes- The festival season kicked off at the expands.
growth next year could be bet- tic product readings end of August with the 10-day Onam fes- The firm will join the NSE
ter than projected if private missed market esti- tival in Kerala and the Ganesh Chaturthi Nifty 50 Index, the most
sector capital expenditure mates. widely celebrated in Western India, fol- tracked stocks gauge in the
picked pace. The lower-than-ex- lowed by Diwali in the North and Cen- country, replacing Shree
In its update to Global Macro pected growth during tral regions in October and November. Cement Ltd., according to a
Outlook 2022-23, the ratings April-June created This season accounts for nearly a quar- statement on Thursday from
agency pointed out that India’s downside risk of 40 ter of the Indian automobile industry’s National Stock Exchange of
central bank is likely to remain basis points to current annual sales. India Ltd.’s index-manage-
hawkish this year and maintain fiscal year growth esti- Automakers, therefore, typically ment firm. The changes, which
a reasonably tight policy stance mates, Morgan Stanley build up stocks to capture this demand are based on factors including
in 2023 to prevent domestic said in a note. in the run-up to the festivities. Accord- free float market capitalization,
inflationary pressures from India’s real GDP ing to industry executives, passenger were expected and will be
building further. growth increased 13.5% vehicle inventory in the system is now at effective from Sept. 30.
“Our expectation that India’s year-on-year in the an average of 22-26 days, and may rise It’s a boost for the billionaire,
real GDP growth will slow from reported quarter, below further as production ramp-ups con- August shipments at the country’s largest carmaker Maruti Suzuki grew 30.5% to 143,692 units. MINT whose firms’ weightages have
8.3% in 2021 to 7.7% in 2022 the 15.2% forecast by tinue. been adjusted on the MSCI
and to decelerate further to economists polled by August shipments at the country’s “Vehicle stock in the industry is esti- Inventories, however, remain under build-up in stock levels comes in the India Index in recent months.
5.2% in 2023 assumes that ris- Reuters. largest carmaker Maruti Suzuki grew mated to be at 220,000 units, which is control and below the pre-covid normal backdrop of severely sub-optimal stock The group is surging ahead
ing interest rates, uneven dis- 30.5% to 143,692 units, 5.6% to 49,510 up from 120,000 units in the beginning industry average of 30 days, he added. levels in the channel in the beginning of with a string of acquisitions
tribution of monsoons, and units for Hyundai Motor India, and of the year - that’s a net addition of Srivastava said that Maruti Suzuki saw the year. even as some analysts flag con-
slowing global growth will However, Moody’s expects 68.3% to 47,166 units for Tata Motors nearly 100,000 vehicles in just three a 10-15% jump in bookings during the Chandra said that Tata Motors cerns about its level of lever-
dampen economic momentum inflationary pressures to ease in passenger vehicles. Mahindra & Mahin- months of June, July and August. It is Onam period, and expects that festive expects festive season sales to be at par age. The inclusion of Adani
on a sequential basis,” Moody’s the second half of the year and dra’s utility vehicles output grew 87% to the highest ever sales number in a block season sales this year will grow by a simi- with the trend seen last year, or higher if Enterprises on the Nifty 50
Investors Service said in its further next year. It added that 29,516 units. For several automakers supplies are ramped up adequately could result in a net inflow of
report. “Inflation remains a a faster easing of global com- like Mahindra, Skoda Auto India Turning The Corner to meet demand for specific models. around $213 million for the
challenge with the RBI having modity prices could provide a and Tata Motors, wholesale dis- Last year, an acute shortage of stocks counter, while Shree
to balance growth and infla- significant upside to growth. patches of passenger vehicles in pAssenger vehicle There is a total of vehiCle stock is for several firm’s semiconductor chips hit the auto- Cement will see an outflow of
tion, while also containing the India’s retail inflation had August were at or near record high inventory in the
system is now at an
700,000 pending estimated to be at
orders for passenger 220,000 units, up
wholesale
dispatches in
motive industry in India just as it $87 million, according to Edel-
impact of imported inflation eased to a five-month low of levels. average of 22-26 days vehicles in the from 120,000 units in August were at or was entering the festive season in weiss Securities Ltd. analyst
from the year-to-date depreci- 6.71% in July, falling below the However, even as dealership and may rise further industry at present the beginning of 2022 near record high September. An improved inventory Abhilash Pagaria.
ation of the Indian rupee 7% mark for the second straight inventory improves, retail sales are position and better supply chain vis- Shares of Adani Enterprises
against the US dollar of around month, but still above the RBI’s lagging. Production of vehicles is ibility is likely to ensure there is have risen 89% this year, while
7%,” it added. upper tolerance band of 6% for likely to see significant improvement in of three months in the industry,” Sha- lar quantum too, contingent on supplies growth in dispatches over last year, but all seven listed companies have
The RBI-led monetary pol- the seventh month in a row. the second half of the current fiscal year shank Srivastava, executive director, keeping pace. retail sales could reflect a different trend rallied, led by a 310% surge in
icy committee hiked the repo RBI has projected inflation for as supply snags ease, which could make Maruti Suzuki said, while pointing out Shailesh Chandra, managing as the festive season in North India was Adani Power Ltd. The group
rate by 50 basis points in 2022-23 at 6.7%. The wholesale it a year of record production for many that retail sales of passenger vehicles at director, Tata Motors Passenger Vehi- split between the two months of Octo- has grown rapidly, announcing
August, for the third time in a price index based inflation automakers. There is a total of 700,000 1.48 million in the April-August period cles said that the inventory position is ber and November, whereas this year, plans to push into multiple new
row, taking the policy rate to moderated to a five month low pending orders for passenger vehicles in is 100,000 units short of 1.58 million in not a matter for concern as the demand the season concluded with the Bhai businesses, including media,
the pre-pandemic level of 5.4%. in July. the industry at present. total wholesales for the same duration. outlook remains strong, and the Dooj festival in October itself. healthcare and digital services.

BOLLYWOOD ON
THE FIELD
Hindi cinema has seen a spate of ISSUE OUT
TOMORROW
sports biopics and sports-related
fiction films lately. As the genre
comes of age, Lounge speaks to the
professionals who turn Bollywood
stars into believable sportspersons

THINK: Rooting for TASTE: TRAVEL: Forest bathing BUSINESS LOUNGE

dholes, the underdogs Chandigarh’s rise in Virginia’s Shenandoah Zepto’s founders
of the forest as a food hub National Park on ‘flash’ deliveries
04 Friday, 2 SepteMber 2022
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

58,766.59 -1.29 17,542.80 -1.22 15,211.20 -0.74 43,713.80 0.01 17,924.30 -1.04 25,554.25 0.57 28,789.30 0.48
PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN

59,537.07 58,710.53 17,759.30 17,485.70 15,325.05 15,142.70 43,709.15 43,403.90 18,112.40 17,858.45 25,408.49 25,286.55 28,650.88 28,580.73
HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW

59,309.79 58,522.57 17,695.60 17,468.45 15,309.85 15,141.45 43,848.45 43,340.80 18,063.90 17,850.15 25,570.94 25,228.42 28,847.36 28,525.48

m MINT SHORTS Festive sales vital for SRF’s capex plans

China junk bonds just chalked cheer investors, but
up their best month since 2012
Beijing: China’s embattled high-yield dollar bonds rallied
in August to deliver their best returns in 10 years, after
greater government support for the crisis-hit property sec-
business confidence execution is critical
tor sparked bets that the worst of a more than a year-long Harsha Jethmalani Vineetha Sampath
Keeping the faith In growth mode
rout could be over. The notes, dominated by real estate harsha.j@htlive.com vineetha.s@livemint.com
firms, returned 6.8% in August, according to a Bloomberg With easing inflation and improving output, Indian manufacturers’ optimism After a big jump in capex in FY22, SRF
has guided for a cumulative capex of

I
surged to a six-year high in August.

S
index. That’s the best month since February 2012 and ends ndian manufacturers are brimming RF Ltd’s shares rose by nearly 15,000 crore over FY24-28.
a record 11 straight months of losses. It has also lifted aver- with optimism. Business activity in Future Output Index (Unadjusted) 5% on Thursday, a day when the
Capital expenditure (in  crore)
age prices off all-time lows, though they are still in dis- the manufacturing sector softened a Seasonally adjusted Input Costs Index Seasonally adjusted Output Prices Index benchmark Nifty50 index fell by
Chemicals Packaging films
tressed territory at 64 cents on the dollar. Money managers bit in August, but encouraging data 65 1.2%. The company met analysts ear-
Technical textiles
including BlackRock Inc and Fidelity International Ltd points kept spirits high. lier this week and, among other
slowed selling of China property bonds in August to just The seasonally adjusted S&P Global things, disclosed its capital expendi- 2,000

$145 million of par value from more than $5 billion a month India Manufacturing Purchasing Manag- 60 ture (capex) plans. Investors are
earlier, according to Bloomberg Intelligence analysts. Pru- ers’ Index (PMI) was 56.2 compared to pleased.
dential Plc was among those adding to its exposure in 56.4 in July. A reading above 50 indicates Over FY24-28, SRF has guided for 1,500
recent weeks. Junk dollar notes were little changed on expansion. Weak employment index 55 a cumulative capex plan of ₹15,000
Thursday, according to credit traders. BLOOMBERG dragged the headline reading lower. crore. Out of this, ₹12,000-13,000
The manufacturing PMI for August crore will be directed towards the 1,000
was unlikely to rise again, after surging to 50 chemicals business, which consti-
a nine-month high in July, said Shilan tuted 42% of total consolidated oper-
Shah, senior India economist at Capital ating revenues in FY22. Further, SRF
Economics. 45 expects the chemicals business to 500

The consensus estimate for August’s grow at a compound annual growth

headline PMI was 55, Shah pointed out in rate of 20% over the next five years.
a note dated 1 September. As such, the 40 There is scope to clock a higher 0
Jan 2021 Aug 2022 FY18 FY19 FY20 FY21 FY22
August reading has held up better than growth rate. However, this would Source: Company, ICICI Securities
Note: Monthly data Source: S&P Global
most had expected. come at the cost of dilution in return
Robust demand conditions aided new SATISH KUMAR/MINT
on capital employed and SRF is keen SATISH KUMAR/MINT

order intakes, pushing output growth to business confidence among manufactur- gross domestic product (GDP) print,” said to maintain this at 20%. given the shift to hydrofluorocarbon
a nine-month high in August. Manufac- ers, hit a six-year high of 64.8 in August. Gaura Sen Gupta, India economist at Further, the company aims to consumption.
turing firms attributed this to greater In June, this had slid to a 27-month low. IDFC First Bank. GDP data showed the increase the revenue share from the The remainder of the planned
sales, recent efforts to enhance capacities, “Predictions of stronger sales, new informal sector is yet to fully recover with pharma segment. SRF has formed a capex will be used in SRF’s packaging
fewer covid restrictions, and product enquiries and marketing efforts boosted the pick-up in contact intensive ‘trade, separate research and development films business. It plans to enter into
diversification, said the PMI report. Also, confidence in August,” the PMI report hotels and transportation’ services lag- team to bolster this business. The aluminium foils where the market
Investors saw a 3.9% dip in commodities and a 4.2% slide delivery times shortened meaningfully, said. ging expectations. “A large part of the pharma vertical has grown slower size is 15 million tonnes per annum.
in the S&P 500 in the US markets in August. AFP indicating that supply-side issues are not In the run-up to the festive season, optimism being reflected in the PMI sur- than its agrochemicals counterpart, Generally, such high investments
a big cause of concern now. expectations are high among manufac- vey is strong formal sector recovery, said analysts at Kotak Institutional raise concerns about a company’s
Hence, a soft landing or a scenario of turers in sectors such as automobile and which has been characteristic of the pan- Equities. “However, this was not by debt levels, but SRF’s cash flow gener-
Bulls starved in August during moderate economic slowdown could be consumer durables. Understandably, demic. The so-called ‘K-shaped’ recovery design but an outcome ation is healthy and
worst cross-asset selloff since ‘81 on the cards. “The recent continues with the formal of the sheer scale of SRF expects the that’s a positive, said
Washington: Investors went hungry in August, denied firmness in the headline LitMus tEst sector doing better than the opportunities presented chemicals analysts.
by the US Federal Reserve of opportunities to profit like no PMI numbers suggests that informal sector, the urban by the agrochemicals business to grow The stock is 4% lower
other month in more than four decades. From stocks to a soft landing in manufac- ROBust demand MAnuFACtuRERs’ sustEnAnCE of sector outperforming rural, industry, more so with at a compound than its 52-week high of
bonds and commodities, every major asset slid. The least- turing growth is possible, led to higher intakes confidence got a optimism largely and large companies per- faster ramp-up time- ₹2,773.35 apiece, sug-
of new orders, significant boost as depends on the annual growth
atrocious return was a 1.9% loss as shown in a Bloomberg despite Wednesday’s disas- aiding output cost inflation success of the forming better than smaller lines,” said Kotak ana- gesting investors are
index tracking high-yield corporate bonds. Worse was a trous core IP data, which growth in August concerns eased festive season firms,” she said. A strong lysts in a report on 1 Sep- rate of 20% in the capturing the brighter
2.2% drop in Treasuries, a 3.9% dip in commodities, and a showed activity hitting a festival season performance tember. SRF sells one next five years picture to a good extent.
4.2% slide in the S&P 500. Rarely has advice not to fight the brick wall at the start of Q3,” will provide the much active ingredient (AI) in SRF has done well on
Fed borne out more severely. The last time the best-per- said Miguel Chanco, chief emerging Asia manufacturers are raising prices slowly. needed boost to the informal sector and agrochemicals and has execution, but disap-
forming asset did worse was December 1981. “The only way economist at Pantheon Macroeconomics. The Output Prices Index rose to 52.7 in smaller firms. about 8-9 AIs in the pipeline. pointments ahead will be a dampener.
to make money in an absolute sense is cash or shorting The easing of cost inflation pressure is August from 52.6, but remained below Meanwhile, investors need to be cogni- The company plans to enter areas Some analysts said valuations are pri-
something,” said James Athey, investment director at a much-needed relief. The index measur- the recent high of 54.4 seen in May. Econ- zant of the risk of a global slowdown, such as fluoropolymers as there is cey notwithstanding the growth pros-
Aberdeen Asset Management. “The forward growth out- ing input costs fell to a one-year low in omists note that sustenance of elevated given its impact on India’s manufacturing growth potential in this vertical led by pects. ICICI Securities has maintained
look is deteriorating. Risk assets are still nowhere near August as commodity prices, especially business optimism would largely depend exports. Monetary policy tightening by rising use cases in 5G telecom tech- its estimates, but has downgraded the
appropriately priced for such an environment and I expect aluminium and steel, moderated. Conse- on the success of this year’s festive sales. central banks to fight inflation has nology, semiconductors and renewa- rating by a notch to Hold from Addfol-
weakness to continue.” It is payback from the summer rally quently, with concerns of inflation slowly “The upcoming festival season will be weighed on global demand. Commodity ble energy products. In the refrigerant lowing the recent run-up in the stock
where hopes of a friendly central bank helped add $4 tril- fading, business sentiment got a boost. crucial from a growth perspective, after prices are cooling off, but central banks business, SRF has developed replace- price, and near-term pressures in the
lion to equity and bond values in July. BLOOMBERG The Future Output Index, a gauge of the weaker than expected June quarter are unlikely to pause in a hurry. ment for hydrochlorofluorocarbons non-chemicals business.

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

India now dominates EU hit by factory slowdown Stocks decline as Moody’s

Russian oil market Bloomberg
feedback@livemint.com
the worst since July 2020. fight soaring prices. The impact
Japan weakened, too, though on factory output from some of
slashes India growth forecast
remained above the level of 50 the world’s biggest trading
Bloomberg Ram Sahgal

C
losely watched gauges that separates contraction from hubs is a key warning for The Nifty closed down
feedback@livemint.com of manufacturing in expansion. demand. ram.sahgal@livemint.com 216.50 points or 1.22% at
Europe and Asia fell A drop in new orders to Tai- For the euro area, the chan- mumBAI 17,542.8, off the day’s low by 74

I
ndia has pushed into a corner amid the intensifying fallout of wanese firms indicates the ces of a recession are increasing points. The Sensex ended

B
of the Russian oil market the war in Ukraine and an eco- decline seen in export orders in by the day as Russia curtails enchmark indices Nifty 770.48 points or 1.29% lower at
once dominated by China, nomic slowdown in China. July is continuing. energy ship- and Sensex declined by 58,766.59, off the day’s low by
taking a record number of ship- The purchasing managers’ A series of chip- For the euro area, ments. Despite over a percent each. This 0.4%. Indices have fluctuated
ments of a Far Eastern grade as index (PMI) for the 19-nation makers have the chances of a the gloomy out- came after rating agency 611 points between high and
the fallout of the war in Ukraine euro zone slipped to 49.6 in warned recently recession are look, the Euro- Moody’s slashed India’s growth low over the past week .
reshapes trade flows. August from 49.8 in July, of s l o w i n g increasing by the pean Central forecast, a day after the As many as 38 of the 50
Six vessels hauling Russian according to S&P Global, a demand for semi- Bank is expected National Statistical Office said stocks on the Nifty declined,
day as Russia
crude known as ESPO were reflection of dwindling conductors, to keep raising gross domestic product (GDP) led by heavyweights such as
headed to refiners in India in demand as consumers face sur- which are a key curtails energy rates to contain grew by 13.5% in Q1, signifi- The Sensex ended 1.29% down, Hindalco, Reliance, and
August, according to traders Six vessels of Russian crude ging costs for energy and a export from both shipments the hottest infla- cantly below the Reserve Bank while the Nifty fell 1.22%. PTI ONGC, which dell between
and shipbrokers. That is the are headed to India. BLOOMBERG broadening range of goods and Taiwan and South tion since the cre- of India estimate of 16.2%, amid 2.8% and 4%. Bajaj Finserv,
highest number of cargoes pur- services. Korea. ation of the com- weak global cues. futures by 47,000 contracts. Asain Paints, and Bharti Airtel
chased by India since the and Abu Dhabi, the traders and Germany and Italy both saw The data add to a highly mon currency. The downgrade led to for- They had net purchased shares bucked the trend gaining 1-3%.
stream was introduced and shipbrokers said. A recent dip the worst readings in 26 uncertain global environment “Forward-looking indicators eign institutional investors sell- worth ₹5,6521.10 crore last The intraweek price swings
accounts for almost one-fifth of in purchases by China’s Sino- months. as the world’s two biggest econ- suggest that the downturn is ing a provisional ₹2,290.31 month. However, provisional have caused fear gauge India
available monthly shipments. pec freed up some volumes, Taiwan’s PMI fell to 42.7, its omies move in different direc- likely to intensify, potentially crore on 1 September and rais- domestic institutional investor Vix to trade between a low of
“ESPO crude is now becom- enabling Indian buyers to lowest since May 2020, while tions and most central bankers markedly,” S&P Global econo- ing net cumulative bearish bets buying of ₹951 crore enabled 15.82 and a high of 20.99 this
ing a steady flow for India, a swoop in, they said. South Korea’s declined to 47.6, push interest rates higher to mist Chris Williamson said. on the Nifty and Bank Nifty the indices to pare losses. Thursday.
country that wasn’t a big fan of The August shipments of
the variety for years,” said ESPO are up from July’s pace,
Emma Li, analyst at Vortexa when five cargoes went to ports
Ltd. “The voyage to India will
take longer, but the shipments
might continue as long as the
such as Vadinar, Sikka, Paradip,
and Mundra. Refiners such as
state-owned Indian Oil Corp
Fate of Tamilnad Mercantile Bank IPO to be decided by SAT
price stays attractive and there and private processors Reli-
aren’t real sanctions blocking ance Industries Ltd and Nayara Jayshree P Upadhyay & offer. The bank’s public offer However, subsequently, the The OFS was scrapped
the trade.” Energy Ltd operate plants near Varun Sood goes live on 5 September. The bank scrapped its decision on because of a legal overhang on
India has emerged as a key those terminals. shareholders have cited con- the OFS. The investors argued some of shares of the bank.
buyer of Russian energy in the Before this year’s spree, mumBAI cerns over the offer for sale that the bank needs to file a “To push a set of public and
wake of the invasion, scooping India wasn’t a prominent (OFS) being scrapped and the fresh DRHP with Sebi, accord- retail investors into this judi-

T
up millions of barrels of dis- player in the trade, with local he fate of Tuticorin- Securities and Exchange ing to an executive and the cial flotsam is ill-advised. If it
counted crude shunned by refiners citing factors such as headquartered Tamil- Board of India’s (Sebi’s) deci- lawyer mentioned above. Sebi, were a large issue that dwarfed
Europe and the US. As the con- ESPO’s small cargo size of nad Mercantile Bank sion making process in however, did not find merit in the size of the existing litiga-
flict has dragged on, India first 100,000 tons being undesira- Ltd’s (TMB’s) upcoming initial approving the public offer. the argument and did not ask tions, it was still worth the risk.
ramped up purchases of the ble for the long and costly jour- public offering (IPO) is in the “As shareholders they are the bank to file a fresh DRHP However, with 37.61% or 53.6
flagship Urals crude and is now ney from Kozmino, where it is hands of Securities Appellate concerned about how the IPO and allowed it to go ahead with million shares subject to legal
competing for ESPO, a distil- loaded. That had left nations Tribunal (SAT) as minority approval process was rushed its public issue. This led the wranglings and held in abey-
late-rich grade that comes from such as China, South Korea, shareholders of the bank have despite there being legal con- Minority shareholders of the bank have cited concerns over the three investors to file petitions ance, how do you even price
the east and was favoured by and Japan competing for 30 to approached the tribunal cerns and overhang on the offer for sale being scrapped. MINT before SAT to adjudicate if the for this overhang and legal
China. 35 shipments dispatched every against the public offer. bank’s shares,” said a lawyer bank can go ahead with its list- uncertainty?” asked Institu-
The ESPO shipments going month. Three shareholders, Robert with direct knowledge of the on behalf of shareholders The bank had originally ing next week. tional Investor Advisory Servi-
to India are cheaper than the The US is pressing New and Ardis James Co, East River matter. The matter was slotted sought an urgent hearing planned an OFS and fresh Half a dozen foreign institu- ces India, the Mumbai-based
nation’s usual Middle Eastern Delhi to agree to a bold plan to Holdings Ltd, and Swiss Re to be heard on 6 September. since the public offer opens on issue of shares when it filed the tional investors together own proxy advisory firm, in a note
grades, and will likely displace cap the price of the country’s oil Investors (Mauritius) Ltd are However, senior counsel 5 September. SAT will hear the draft red herring prospectus 23.2% of the bank, according dated 31 January.
some flows from Saudi Arabia to deny revenues to Moscow. seeking a stay on the public Janak Dwarkadas, appearing matter on Friday. (DRHP) in September 2021. to the DRHP. jayshree.p@livemint.com
LIVEMINT.COM DEALS, TECH & STARTUPS Friday, 2 SepteMber 2022
MuMbai 05

m MINT SHORTS
Twitter’s edit button is finally
ZipLoan gets lifeline from Simpolo
raises funds
from Motilal
real, but only for paying users
The long-awaited edit button is finally rolling out for Twitter
users. However, the company said that it will only be giving
access to the platform to a “small group” for now, and it will be
“expanding” access to Twitter Blue subscribers later this month.
StrideOne via stake sale Oswal, others
Beena Parmar
Twitter Blue is the company’s paid subscription feature. The edit beena.parmar@livemint.com
button has been one of the most requested features on Twitter MuMBaI
for more than two years. TEAM TC Online lending platform sells minority stake to tech-led financial services platform for startups
M
otilal Oswal group-
backed funds India
Social media firm Koo lays off Debjyoti Roy & Beena Parmar Business Excellence
Fund-IV, managed and
40 employees as funds run dry NEw DELhI/MuMBaI
advised by MO Alternate

O
nline lending platform Investment Advisors Pvt. Ltd
ZipLoan has sold a (MOPE), along with India
minority stake to raise an SME Investments-Fund I and
undisclosed amount from Motilal Oswal Finvest Ltd
StrideOne, a tech-led have completed an invest-
financial services platform for startups, ment of $66 million (around
amid talks of the startup facing hurdles ₹525 crore) in premium tiles
in running its operations and in raising manufacturer Simpolo group.
funds from private equity investors. The group includes the
The transaction is likely to help flagship Simpolo Vitrified
ZipLoan get a stronger foothold in the Pvt. Ltd and Nexion Interna-
business of offering credit to micro, tional Pvt. Ltd, Motilal Oswal
small and medium enterprises group said in a statement.
Tiger Global, Mirae-backed homegrown microblogging plat- (MSMEs), according to the company. Post completion of the
form Koo has laid off nearly 40 employees from its operations “Combining StrideOne’s startup transaction, Simpolo and
and backend teams as it struggles with a funding crunch, said acumen and deep understanding of the Nexion will continue to oper-
three people familiar with the matter. A Koo spokesperson entrepreneurial ecosystem in India ate as independent entities in
said, “As a people-first company, we appreciate the talent and with our experience of having served the premium and luxury seg-
contributions of each of our associates, which is critical 11000+ MSMEs across 5 key markets ments, respectively.
towards making Koo India’s most loved social media com- will help us expand both our reach and “We believe that the luxury
pany.” The development was first reported by news portal product suite,” said and pre-
Inc42. ANUJ SUVARNA & SHUBHOBROTA DEVROY Kshitij P u r i , The transaction could help ZipLoan get a stronger foothold in offering loans to MSMEs. mium tiles
co-founder and segment
chief executive, approach to lending, StrideOne claims issues on the operational side as loans of its former portfolio companies given in India is
Meta to form new group for more ZipLoan. that it helps startups and MSME eco- disbursed have been returned to the that it had provided venture debt to poised for rapid growth, as
ZipLoan, operated by Delhi-based system with smartly-designed tailored company. The developments have led ZipLoan earlier.” the share of high-end tiles will
paid features on Instagram, FB Blue Jay Finlease Ltd, was launched in credit structures that align to the ZipLoan to even fire some employees. The deal is likely to have closed at a increase from less than 10%
Meta Platforms Inc. is setting up a new group that will focus on 2015 by Puri and Shalabh Singhal. It diverse capital needs of Indian MSMEs. According to a person close to the valuation of less than ₹100 crore, he today to 30-40% as seen in
creating products and features for its Facebook, Instagram and offers loans of ₹1 lakh to ₹5 lakh for a It has disbursed ₹650 crore in the last development, “ZipLoan went through added. In 2020, Stride Ventures developed markets. Simpolo
WhatsApp platforms that people will be able to purchase, a com- period of six to 24 months to marked its maiden transaction in and Nexion, with their focus
pany spokesperson said on Wednesday. “Any new product will MSMEs. Currently, ZipLoan has an BIG BACKING FOR SMALL the digital lending space with a on innovative designs, supe-
be complementary to our existing ads business,” the spokesper- asset base of ₹150 crore. debt funding of ₹15 crore (about $2 rior product quality, wide-
son told Reuters in an emailed statement. The Verge first reported “MSMEs remain credit starved ZIPLOAN, operated THE company offers CURRENTLY, the ZIPLOAN has faced million) to ZipLoan. spread dealer network and
the development. REUTERS and struggle with access to working by Blue Jay Finlease
Ltd, was launched in
loans of ₹1 lakh to
₹5 lakh for a period
online lending
platform has an
difficulties in raising
fresh capital due to
ZipLoan had raised ₹90 crore in brand positioning is well
capital. Aligned with our larger 2015 by Puri and of six to 24 months asset base of tough market its Series B round led by venture placed to capture this growth
goal of fuelling India’s entrepre- Shalabh Singhal to MSMEs ₹150 crore conditions capital and growth-equity invest- and become a leading build-
Olectra Greentech plans to raise neurial ambitions, our partnership ment firm Elevation Capital last ing materials player in India,”
with ZipLoan is a key strategic step year. Previously, it secured ₹ 20 said Prakash Bagla, director
₹800 cr via issuance of securities towards enhancing financial inclusivity eight months with assets under man- its operating troubles and had to crore in a funding round led by Matrix of MOPE.
Mumbai: The board of electric mobility firm Olectra Greentech for MSMEs,” said Ishpreet Gandhi, agement of ₹300 crore. It had earlier undergo cost restructuring including Partners India in October 2017. Simpolo is India SME’s 9th
has approved a plan to raise up to ₹800 crore by issuing equity founder, StrideOne. raised equity from Elevar Equity . lay offs. Prior to that, ZipLoan had raised investment and has earlier
shares and /or through sale of securities convertible into equity StrideOne is tech-enabled, non- ZipLoan had in the recent past faced In its efforts to raise more funds, the around ₹4.2 crore in its pre-Series A concluded deals in fintech,
shares. These could include issuance of warrants through one or banking financial company from the difficulties in terms of a fresh equity company did not receive the valuation funding round led by WaterBridge Ven- retail, branded food process-
more private offerings, it said in a statement. Olectra Greentech stable of venture debt firm Stride Ven- fundraise due to tough market condi- it was seeking for. However, StrideOne tures. ing, manufacturing and B2B
did not specify the purpose of the fundraising. PTI tures. Through their anchor-led tions. The company has also witnessed would have come in as a rescue to one debjyoti.roy@livemint.com businesses.

IFC may invest in Lighthouse’s Meta acts on 27 million posts in Jul Singularity AMC
latest India-focused PE vehicle Content crackdown to close fund with Abhijit Ahaskar
abhijit.ahaskar@livemint.com
Meta has been actively removing Content actioned
NEw DELhI
Shubhobrota Devroy
₹600 cr corpus
tics and financial services.
objectionable content from its
platforms.

M
shubhobrota.devroy@livemint.com In July, the PE firm planned eta cracked down on Instagram Facebook
NEw DELhI its biggest fundraising that is more than 27 million Adult nudity and sexual activity 370,100 2,700,000
targeting fast-growing con- posts across Facebook Shubhobrota Devroy &
Bullying and harassment 166,500 306,200

I
nternational Finance Corpo. sumer brands in the country. and Instagram in July alleging Anuj Suvarna
Child endangerment - nudity 77,700 286,300
(IFC), the private investment The latest fund will be Light- violations of community guide- and physical abuse
arm of the World Bank, has house’s largest so far, after its lines, according to its latest Child endangerment -sexual 52,300 518,500
NEw DELhI/BENgaLuru
proposed to make equity $100 million fundraise in 2009, monthly transparency report exploitation

S
investments of up to $50 mil- followed by $135 million and for India. Dangerous organizations and 7,400 108,600 ingularity AMC, backed
lion (about ₹375 crore) in Light- $230 million in two funds in The 31 August report shows individuals: organized hate by veteran investor Mad-
house AMC Pvt. Ltd’s mid-mar- 2015 and 2019, respectively. Meta took action against Dangerous organizations and 9,200 998,500 husudan Kela, is set to
ket private equity (PE) fund that Lighthouse has raised more around 25 million posts on individuals: terrorism achieve closure of its maiden
is focused on growth transac- Lighthouse has invested in Indian than $450 million and has Facebook and around 2 million Hate speech 22,500 110,300 fund with a corpus of ₹600
tions in India. firms , including popular online invested in Indian companies, on Instagram. Regulated goods: drugs 1,100 7,600 crore by the end of this month.
The investment will be made beauty retailer Nykaa. MINT including popular online According to Meta, its Regulated goods: firearms 700 12,600 The Singularity Growth
in Lighthouse India Fund IV beauty retailer Nykaa and eth- actions include removing con- Suicide and self-injury 909,200 380,800 Opportunities Fund-1 (SGOF-I)
AIF, an India-focused vehicle million,” the disclosure said. nic apparel and IPO-bound eth- tent or covering photos or vid- Violent and graphic content 272,900 2,300,000
has raised ₹510 crore so far and
that aims to raise $400 million Mumbai-based Lighthouse, nic retailer Fabindia. eos that may be disturbing to aims to secure the rest of the
Violence and incitement 123,100 186,300
in total commitments. IFC is founded in 2006 by Sachin In April, Lighthouse Funds some audiences with a warning. capital over the next four to six Veteran investor Madhusudan
Spam NA 17.3 million
also considering up to $40 mil- Bhartiya, Sean Sovak and logged out partially from listed All significant social media weeks. The fund has deployed Kela’s family office promotes
Data is for the period 1-31 July 2022
lion in potential co-investments Mukund Krishnaswami, laminate maker Stylam Indus- intermediaries are required to Source: Meta India monthly report, under IT Rules
₹150 crore across six firms so far. Singularity AMC. MINT
in the fund’s portfolio compa- marked the final close of its tries Ltd. publish transparency reports “We are seeing interesting
PARAS JAIN/MINT
nies, as per a regula- third fund at ₹1,750 Lighthouse had invested in a every month under Rule 4(1)(d) of deal flow; out of six companies helped because here we don’t
tory disclosure by crore, including a publicly listed healthcare com- the Information Technology graphic content, and over one harm, while 370,000 pro- —four of them are earnings have solvency risk as compa-
IFC. pool of capital for pany last year. Its portfolio firms (Intermediary Guidelines and million were linked to danger- moted adult nudity and sexual before interest, taxation, depre- nies are positive already,” said
“The fresh pro- co-investment from its funds include cosmetics Digital Media Ethics ous organizations activity. Meta said it received ciation and amortization Kela.
ceeds will support 10-12 growth opportunities, in May 2019. and beauty brand Kama Ayur- Code) Rules, 2021. and individuals such 626 complaints about prob- (Ebitda) positive, or at break- “While evaluating, we see if
stage mid-market companies Lighthouse focuses on con- veda, snack brand Bikaji, mattress Of the 25 million as those linked with lematic posts on Facebook and even level. So, profitability for the company has solvency risk,
across consumer, healthcare, sumer-centric sectors such as maker Duroflex, footwear brand Facebook posts, 17.3 terrorist activities. 1,033 complaints on Instagram these companies is right around capital efficiencies, and high
specialty manufacturing and healthcare, food and beverages, Aqualite and business-to-busi- million were spam, 2.7 million On Instagram, out of the 2 from Indian users, and that it the corner. The companies have profitability. Our youngest
digital transformation with an personal care, building materi- ness (B2B) online marketplace for involved adult nudity and sex, million posts, close to 1 million responded to all the com- witnessed a minimum double- company does around ₹120
average ticket size of $20-40 als, consumer durables, logis- medical supplies Medikabazaar. 2.3 million had violent and posts were on suicide and self- plaints. fold growth as well,” said Yash crore in revenue while the most
Kela, founder and chief invest- mature one does ₹1,100 crore,”
ment officer of Singularity he said, adding that so far, the
AMC, in an interview. fund’s largest cheque was ₹70

5G connectivity may not cater to budget smartphone buyers The six investments by
SGOF-1 include business-to-
business (B2B) device manage-
crore, while the smallest one
was ₹20 crore.
Singularity AMC is promoted
ment platform Servify; cloud by Madhusudan Kela’s family
Abhijit Ahaskar it is challenging for firms to bring tional upgrade kills a threshold in ces further down. There are chal- telephony platform Exotel; edu- office. It was set up in August
abhijit.ahaskar@livemint.com a 5G device at this price,” he the market. “Prior to 4G we had a lenges however given high com- cation-focused lending startup 2021 by Kela’s nephew Yash
NEw DELhI added. segment of ₹4,000-6,000. After ponent costs and fluctuating dol- Eduvanz; innerwear brand Kela to focus on investments in
According to IDC, the average 4G came, no brand was able to lar prices. We don’t want to bring XYXX and personal care brand new-age firms in financial servi-

B
udget smartphone users selling price (ASP) of smart- sustain that segment. Similarly, a smartphone that does not meet mCaffeine. ces, consumer brands,
will have limited choice of phones is rising every quarter 5G smartphones will create a new all the needs of our users and Singularity led telecom networks and
5G handsets, and 4G devi- since Q4 2020. In the June quar- threshold of ₹8,000 to ₹9,000, hence will take some time to bring investments in three precision manufac-
ces will continue to dominate the ter, it was at $213 (around leading the budget segment to a 5G smartphone in the sub-₹ startups last month— turing sectors. The
budget segment even after 5G ₹16,957). Smartphones are get- shrink further.” 10,000 segment,” $65 million in Servify, $20 mil- family office makes co-invest-
services are rolled out, industry ting costlier as companies are That said, Most 5G-ready said Madhav Sheth, lion in user engagement soft- ments as a limited partner (LP)
analysts said. shifting focus to the high-value brands will con- handsets in the CEO, Realme India. ware-as-a-service (SaaS) firm via Artha Venture Fund, Sixth
Most 5G-ready handsets in the middle and premium segments sider strategic part- sub-₹12,000 At its annual WebEngage and ₹90 crore in Sense, 3one4 Capital Iron Pillars
sub-₹12,000 cate- amid waning The average selling price of smartphones has been rising every nerships with tel- category may be general meeting XYXX. and Trifecta Leaders Fund
gory will primarily demand from the quarter since Q4 2020, according to IDC. REUTERS cos to offset the this week, Reli- The fund has raised capital among funds.
subsidized
be subsidized offer- budget category due cost. “Brands can ance Jio said it is from large global and domestic Since inception, Singularity
ings by companies, to “inflationary pres- it is not possible to offer 5G “5G will not penetrate into bring ecosystem offerings by working with Goo- family offices and ultra-high net AMC has invested in 30-35 port-
they said. sures” and brands are also strug- smartphones in the budget seg- lower price points at the same players who can companies gle to create a low- worth individuals (HNIs), includ- folio firms such as Keto, Insurify
“5G is more of a marketing gling to offer phones at competi- ment. “You will need bare mini- pace as it has penetrated other subsidize and share cost 5G device, and ing the likes of Paytm chief exec- and Market Simplified. Almost
thing right now, showcasing tive prices, he added. mum hardware to run games that segments. The bill of materials the cost. Jio can use the lack of interest utive Vijay Shekhar Sharma. 60% of the investments have
presence across the channels,” Many leading brands have not can take advantage of 5G and its will not allow that,” said Tarun it for monetization, acquiring from other brands may benefit “We have been cognizant been exited at an internal rate of
said Navkendar Singh, associate launched smartphones in the benefits. When we moved from Pathak, research director, Coun- users for platforms such as Jio Jio in the long run, if it succeeds about how we value the compa- return of around 50%. It plans to
vice-president for devices budget segment in the past year, 3G to 4G, the hardware terpoint Research. Bill of materi- Mart,” said Kawoosa. in making such a device. 5G nies. Last year, we got six com- make further 7-8 exits this year.
research at IDC India, South Asia, and are not planning to do so at improved. With 5G, hardware als cost of a phone is the com- “While we have already intro- handsets comprised 33% of the panies in our range and we will The family office has also
and Australia and New Zealand. least for the next year. Faisal will be upgraded further and it bined cost of all the components, duced 5G smartphones in the sub- overall market in the June quar- continue to do similar deals at exited some of its investments
“In fact, 4G models will do well Kawoosa, founder and chief ana- will be difficult for brands to off- including chipset, and display. ₹15,000 segment, we are now ter, according to Cybermedia maybe three-and-a-half net such as Clovia and Fynd to Reli-
below the ₹12000 price point as lyst at researcher TechARC, said set that cost,” he said. Kawoosa said every genera- working towards bringing the pri- Research. revenue multiples. This has ance Ventures.
06 Friday, 2 SepteMber 2022
MuMbai CORPORATE LIVEMINT.COM

Airtel aims
to be No 1 ‘Cyber insurance is among the m
MOVES
in Africa:
Ogunsanya
fastest growing segments’ A weekly list of C-Suiters who have moved up
the corporate ladder either within or outside
their companies.
Anirudh Laskar phone users in India will touch 1 billion. Amit Appointed as chief executive
Tyagi officer at Payworld
FROM PAGE 1 anirudh.l@livemint.com While the digital payment systems
mumbai have brought in financial inclusion and Appointed as government and
270, compared to 600 in India. transparency, the flip side of this is ris-
Anuja industry affairs leader-APAC
Kadian

T
We’re sitting on three legs of he spike in online transac- ing security threats and data breaches. at Corteva Agriscience
growth—voice, data and Airtel tions, emergence of tech- Apart from financial institutions, medi-
Arif Appointed as chief innovation
Money—that are continuing to heavy startups and swift dig- cal facilities and retail chains that are officer at RazorPay
grow, and of them, data and itization of banking and more prone to cyber threats, with the Khan
money are growing in double industrial processes have increase in digitized processes and Appointed as chief executive
Arvind officer-food business at Desai
digits. We’re not just growing in boosted the risk of cyberattacks, for online transactions, manufacturing Kumar
Africa. We’re growing profitably. companies and the common people. companies are also exposed to huge Brothers
How do you plan to close the Sanjay Kaw, president-commercial security threats. Cybercrime can have Ashish Appointed as vice president-new
gap with MTN? business, HDFC ERGO General Insur- a significant negative impact on one’s Sharma business at UpGrad
We’re already No. 1 in a few ance Co. Ltd, in an exclusive interview business if proper precautions are not
countries, like Zambia and Niger, with Mint, explains how these risks taken to prevent it. In such a scenario, Bhaskarjyoti Appointed as head of business-east
on par in Uganda. We’re No. 2 in have created a rush in demand for it is expected that the need for cyber Bhowmick at Cushman & Wakefield
many countries, such as Nigeria. cyber insurance, making it one of the insurance will grow by 30 -40% in
Bhavini Appointed as chief operating
We don’t want to remain No. 2 fastest growing insurance segments in coming years. officer at Balaji Motion Pictures
forever. We’re ready to be No 1. India ever. Edited excerpts: What kind of cyber threats are Sheth
My aspiration is to be No. 1 in as What sort of growth in demand emerging and what are companies Bhavnish Appointed as chief of customer
many markets. If you look at our have you seen for cyber insurance asking for when it comes to cyber Lathia experience at Kotak Mahindra Bank
journey in the last 10 years, we’re in India, especially in terms of insurance? Which sectors are
very stable ownership, and we’ve number of corporate and individ- exposed to the highest cyber risks Dipankar Appointed as group head human
developed a very clear strategy
that is working on six pillars—
network, distribution, data,
money, cost reduction and peo-
ple. MTN got in much before us;
they’ve been stable for a long
time. We came in late, we took
over several badly performing
ual clients?
Since the onset of the global pan-
demic, the cyber insurance market has
been extremely dynamic and volatile
worldwide. With ‘work from home’ and
hybrid models more in practice, the
essence of a strong cybersecurity
framework has emerged more than
and how much do they spend annu-
ally on cybersecurity covers?
Evolution of attacks is fast and contin-
uously changing. Top trends in attacks
are double/triple extortion, access to
entire network, attack on supply chains.
For years, financial sector topped the list
of industries that were likely to be tar-
Ghosh
Gaurav
Gupta
Hemlata
Goel
m resources-APMEA at Apollo Tyres

Appointed as vice
president-engineering at Acko

Appointed as director-global back

office & Asia human resources
operations at Whirlpool

MOVES
businesses, and we’re proud of ever. This has been further fuelled by geted by cyber threats. However, in the Kaleeswaran Appointed as chief financial officer
Arunachalam at Crompton Greaves
what we’ve achieved, especially increase in cyberattacks, resulting in year FY22, this place was taken by the
in the last five years. growing needs for cyber insurance manufacturing sector and financial sec- Madhuri Appointed as chief human
Aren’t inflation and currency products. What are the types of cyber insur- recently, we have seen corporates from tor moved to No. 2 position. resources officer at Emaar India
Mehta
devaluation headwinds? According to a report by Data Secu- ance products being offered by other sectors also quickly adopting Over the past few years, the top trig-
Yes, we underestimated the rity Council of India, the cyber insur- insurers and which segments are cyber insurance products. Financial gers under the policies have been Priya Thakur Appointed as chief people officer
impact of inflation. It not only ance market has witnessed a growth of in top demand from companies institutions and healthcare lead in cyber forensic costs, business inter- Singh at Tim Hortons India

‘
impacted customer wallets but 40% over the past two years in India, and individuals? non-IT/ITES sectors for adoption ruption costs, data breaches and
also damaged our opex (operat- and continues to grow at a similar pace At HDFC ERGO, we offer cyber of cyber insurance fraudulent funds Rajat Appointed as chief human resources
ing expenses) structure. We’re across the industry. Aligned to this insurance products for both retail as products. transfer due to a Grover officer at SBI Mutual Fund
making changes to mitigate the upward market curve, at HDFC ERGO, well as corporate customers. We were The adoption of While digital payment cyberattack.
Appointed as managing
impact on costs of operation we have witnessed a CAGR (compound one of the first insurers in the market to retail cyber insurance systems brought in In 2021, the most Satyam director–international business
because most of our sites are annual growth rate) of 21% for our cyber launch our corporate cyber insurance, products has also been financial inclusion, the frequent threats were Agrawal at CredAble
powered by diesel, and the cost of insurance products in in the year 2012. Since growing. However, compromised creden-
business in some countries has last four years. m INTERVIEW 2012, our book for cor- the awareness for such flip side of this is rising tials, phishing, cloud Siddharth Appointed as head of strategic
gone up 3X. The impact of oil is How has the business porate cyber insurance retail cyber products is security threats and misconfiguration, Khatkhate solutions at Sanctum Wealth
huge on the bottom line. We’re of cyber insurance has grown substantially. still low and we need data breaches. business email com-
re-negotiating with our tower grown in terms of premium under- Today, we are one of the largest cyber to work towards promise and vulnera- Sudeep Appointed as vice president
Sanjay Kaw Bansal growth at WOW Skin Science
partners to pass on only a part of written? How has the claim ratio insurers in the Indian market. spreading the aware- president-commercial bility in third-party
the cost increase in return for the grown? Earlier, our clientele mainly ness for such products. business, HDFC ERGO software, with the most Tejal Appointed as general counsel and
commitment of new rollouts. We have seen a 100% rise in claims included companies from the IT/ITES What has been the common being mal- Patil senior vice president at Wipro
Also, we’re moving away from for cyber insurance products during (information technology/information intake of cyber ware and ransomware
fossil fuels. Also, we’re removing FY21. Such claims were mainly from all technology-enabled services) indus- insurance specialists? How do you attacks. Apart from IT/ITES, and finan- Venkatesh Appointed as group chief financial
non-revenue impacting operat- (large, medium and small) sized com- try—that, too, cyber insurance was see the demand and business of cial institutions, we are witnessing a rise Viswanathan officer at Icra
ing expenses such as postponing panies, primarily in pharmaceutical, taken as a contractual obligation under cyber insurance growing going in demand for cyber insurance products
recruitments in non-critical auto, IT, services and other manufac- their service contracts. forward? from manufacturing, e-commerce, oil Source: Accord India, executive search worldwide
areas. turing sectors. But with rise in cyberattacks It is expected that by 2026, smart- and gas and healthcare sectors.

Brookfield, ArcelorMittal, Virescent to acquire 100 MW solar power Centre to

CPPIB eye stake in NTPC arm portfolio from Jakson Group for ₹400 cr draw a line
FROM PAGE 1 with 3.9GW under implemen- Rituraj Baruah for about 200 MW of solar
on freebies
NTPC Green Energy was
tation and execution.
NTPC also has 4.9GW of
rituraj.baruah@livemint.com
new deLhi
power projects.
Jackson recently announced for doctors
incorporated in April this year. renewable energy capacity its new venture Jakson Green

V
The total installed capacity of under tendering process, irescent Infrastructure, Pvt Limited (JGPL), which will FROM PAGE 1
parent NTPC is 69.464GW, and which will further bolster the which manages the focus on green hydrogen and
the company plans to reach green energy portfolio of Virescent Renewable ammonia, waste to energy, sional Conduct, Etiquette and
130GW by 2032, which would India’s largest power pro- Energy Trust (VRET) is set to electrolyzers and fuel cells, util- Ethics) Regulations, 2002, which
be largely non-fossil fuel, ducer. purchase about 100 MW of ity-scale battery energy storage provides for a code of conduct for
including renewable and It also has plans to enter the solar power portfolio from Jak- systems, solar and related oper- doctors in their relationship with
nuclear. Getting to the target of green hydrogen space. NTPC son Group for around ₹400 ation and maintenance services pharmaceutical companies.
130GW would require an esti- recently announced that its crore. across all these lines of busi- Besides, the National Medical
mated investment of $30 billion. Kawas Gas blending project The portfolio includes three ness. Council issued guidelines bar reg-
Currently, NTPC has 2.4GW would blend hydrogen with operational solar projects in Global investment firm KKR istered doctors and their families
of commissioned renewable The total installed capacity of piped natural gas for domestic Uttar Pradesh and Rajasthan, Jakson Group operates 200 MW of solar portfolio. BLOOMBERG entered the Indian renewable not to receive gifts, travel facili-
capacity with 3.9GW under parent NTPC is 69.464GW. usage. which have long term power energy space in 2020 when it ties, hospitality, cash or monetary
implementation and execution. Further, the company also purchase agreements with the next two to three years,” backed company. Jackson also set up Virescent with plans to grants, etc., from pharmaceutical
Last month, NTPC various stations, out of which has expansion plans abroad. NTPC Vidyut Vyapar Nigam Grewal said. The latest addition aims to sell more of its solar acquire operating renewable companies. However, the level of
enhanced its solar footprint by 242MW has been commis- The official also said that it is Limited and Uttar Pradesh of 100 MW will take its solar portfolio, Gupta said. energy assets in India. This will deterrence seems to be very
commissioning the 56MW sioned. This includes the also likely to develop a solar Power Corporation Limited for portfolio to 600 Energy and be Virescent’s fifth acquisition poor,” the official said.
Kawas Solar PV Project at country’s largest floating solar project of 50MW in Sri Lanka 25 years, said Sanjay Grewal, MW, he said. Investment firm infrastructure having already acquired four In 2021, the Federation of
NTPC Kawas, Gujarat. of 100MW at Ramagundam in which would entail an invest- chief executive officer (CEO), Post the acqui- KKR had set up company, Jakson portfolios including assets from Medical and Sales Representa-
NTPC is lowering its carbon Telangana, 92MW at Kayam- ment of around ₹200 crore. Virescent Infrastructure. sition, Virescent Virescent with Group, owns and Shapoorji Pallonji Infra and tives Association of India filed a
footprint by reducing green- kulam in Kerala, and 25MW Recently, the state-run The transaction is in and Jakson Group plans to acquire operates around Godawari Power & Ispat. plea in the Supreme Court
house gas emissions by install- each at Simhadri in Andhra company invited the partici- advanced stages of closure, aim to collaborate 200 MW of solar Assets under management of alleging unethical marketing
operating
ing renewable energy projects Pradesh and Kawas in Gujarat. pation of bidders to set up Grewal said. The transaction in other areas too, portfolio across Virescent as on 31 March 2022 practices by pharma firms.
in its existing stations and put- It has also collaborated with 1,150MW Solar PV projects in will be complete in the next few Grewal said. renewable energy four projects. was ₹3,850 crore. “The federation mentioned in
ting up greenfield renewable NITI Aayog to achieve its net Cuba. NTPC, a corporate part- months, he said. The Jakson assets in India They had recently This is likely to increase to the appeal that the uniform code
projects. The company has zero targets. The NTPC Group ner of the International Solar “With the conclusion of this Group’s chair- announced com- ₹4,250 crore after completion of conduct is not strong and
planned 262MW floating solar plans to achieve 60GW of Alliance (ISA), has been cho- transaction, VRET will come man and manag- missioning of its of the transaction. should be made into an Act. We
plants over 1,300 acres of its renewable energy by 2032. sen as the preferred partner closer to its aim of achieving a ing director, Sameer Gupta, 70 MW project at the Amguri In February this year, VRET understand that mere availability
reservoir area by installing NTPC has 2.3GW of commis- for implementing solar PV 1.5 GW portfolio of assets in the said it is looking at a long-term solar park in Assam. Gupta also raised ₹650 crore through a of law is not going to deter any-
950,000 PV modules at its sioned renewable capacity parks in the Caribbean island. initial phase of its growth over relationship with the KKR- said that the company has bid domestic bond issue. body. Only the state medical
councils can take action and keep
a close watch on doctors doing
such activities,” the official said.

Restaurants go easy on cloud kitchens as dine-in bounces back “Multiple states have regula-
tions, and it is not defined in
one place. So, it sometimes
becomes difficult to keep an
eye on such activities. How-
Suneera Tandon demand for food online. Most formats, cloud kitchens were Lite Bite Foods Pvt. Ltd that Right now it’s (cloud kitchens) delivery demand recently, ever, this issue can be resolved
suneera.t@livemint.com now admit to going easy on an alternative revenue stream operates popular restaurant not the priority because the with dining-out opening up; when doctors start prescribing
new deLhi opening standalone ghost during the pandemic and not brands such as Punjab Grill, funds are limited, manpower however, Impresario contin- generic drugs to patients and
kitchens. However, others a primary one, he said. You Mee and The Artful is limited, we want to optimize ues to believe in the long-term not branded ones. An extensive

L
arge restaurant chains said they continue to scale up “I feel it is always going to be Baker, among several others, on that,” he said. potential of the delivery busi- awareness campaign to pro-
that rushed to open cloud their delivery-only brands a hybrid model. During the had announced plans to Meanwhile, deliveries from ness and is as committed mote generic medicines is
kitchens and double given the success they have pandemic, delivery was the launch over two dozen cloud existing outlets have gone up towards it. We will continue to needed,” a second official said,
down on virtual first brands in seen in the model. only mode of survival, so a lot kitchens to take its own brands in general, lowering the need invest in it,” said Riyaaz declining to be named.
the pandemic said they are Sagar Daryani, co-founder of the physical players shifted online in a significant way. to open stand-alone cloud Amlani, CEO and MD, Impre- A health ministry spokesper-
focusing more on their dine-in and CEO at Wow! Momo, to delivery and did a lot of vir- Rohit Aggarwal, director, Lite kitchens. “Earlier we used to sario Handmade Restaurants. son did not respond to queries
business and prioritizing which had opened 19 stand- tual brands from the same res- Bite Foods, said the company do 5—7% delivery orders; now The firm that operates chains sent by Mint till press time.
deliveries via existing stores. alone cloud kitchens post the taurant with different cui- There has been a slump in is back to prioritizing growth it is 20-22%, so every restau- such as Social and Smoke Dr Rajeev Jayadevan, a
With dine-in services get- pandemic, said they will fol- sines. Many people who did delivery demand, with dining- and expansion of its dine-in rant can double up as a deliv- House Deli will continue former president of the Cochin
ting shuttered at the onset of low a more hybrid model, cloud kitchens as a means of out opening up, said some formats. “We thought it ery hub,” he added. investing and ramping up Chapter of the Indian Medical
the pandemic, several food building stores that service survival are now witnessing restaurant chain executives. MINT (cloud-kitchens) could be a However, others are certain cloud kitchens at a “steady” Association, said the industry is
brands stepped up efforts to both dine-in and delivery. The fewer orders or are not looking long-term thing but now we of the “long-term” potential of pace, he said. Estimates from allowed to distribute product
expand delivery services. company operates three fast- at expanding those kitchens open 25 cloud kitchens in 12 think dine-in has bounced food delivery and will con- consulting firm Redseer peg name reminders such as pens.
Many also forayed into cloud food brands. For several and are back to expanding months, in all the company back. At the start of the pan- tinue to invest behind and cloud kitchens in India to be a “Beyond this, expensive gifts
kitchens and virtual brands chains that have for years physical outlets,” Daryani said. will open 250 stores. demic, we did not think build delivery-first brands. $3 billion opportunity by and trips might be happening
given the general consumer invested in pure-play dine-in Although Daryani plans to In 2020, food services firm dine-in would come back. “Yes, there has been a slump in 2026. in small pockets,” he said.
LIVEMINT.COM CORPORATE FRiday, 2 SepteMbeR 2022
MuMbai 07

Hollywood set to deck THE DEADLY LEGACY OF A CRATER

descend through the atmosphere. That’s why we some-

the halls with festive flair A M AT T E R

OF NUMBERS
times see a “shooting star”—a meteorite—on a dark night.
That’s yet another rock from space, burning up with the
friction from our atmosphere. So yes, we bump into space
rocks all the time. But it’s the rare one that’s big enough to
make it all the way through the atmosphere and hit the
DILIP D’SOUZA ground. How rare?
Consider some numbers. Even if the Tunguska meteorite
Respond to this column at didn’t reach the ground in 1908, the reality is that boulders
Audiences are realizing that American movies are best enjoyed in theatres feedback@livemint.com of that size collide with the Earth about every 900 years, and
we should expect that some of them will touch down. Mete-

O
n a sunny Tuesday morning in March about 66 mil- orites about 1km across hit us about every one million years.

H
ollywood movie lovers in India lion years ago, this planet’s dinosaurs were wiped A 15km monster like the one that left the Chicxulub crater,
can expect a festival feast this out. In fact, about 75% of the planet’s plant and ani- about every 65 million years. So, we may be due one of those
year with superhero flicks Black mal species were wiped out. Well, maybe not all on that gigantic extinction events, not that I want to alarm you.
Adam, Black Panther: Wakanda Tuesday afternoon, but they were gone within a relatively Given those numbers, and taking into account the Earth’s
Forever and Shazam! Fury of the short geological span: maybe a few years, maybe a few tens age of about 4.5 billion years, you’d expect that we’d have
Gods reaching theatres over the next few of thousands of years. at least a few thousand craters left by all these collisions,
months, followed by the hugely-anticipated What set off this so-called Cretaceous–Paleogene extinc- maybe about 60 of them as large as Chicxulub. True, we
sequel to James Cameron’s Avatar in Decem- tion event? A huge asteroid—possibly up to 15km wide— may not be able to see them all. After all, more than 70% of
ber. smashed into the Earth. This collision was hypothesized for the planet is under water. Even so, it’s surprising that we
A robust slate of movies in the second half years—until 1980, when a team of scientists announced that know of only about 200 impact craters on Earth. For various
of the year, following successive hits such as they had discovered the scar the asteroid left on the Earth’s reasons, only about 20 of those are “marine impact craters”,
Doctor Strange in the Multiverse of Madness surface. This is the Chicxulub crater, 180km in diameter, and most of those 20 are in relatively shallow waters—like
and Thor: Love and Thunder in the first half, half on and half off Mexico’s Yucatan Peninsula. Chicxulub.
is expected to help Hollywood maintain or The Chicxulub collision was an earthshaking catastrophe There’s something else that’s surprising about these cra-
improve its share in the Indian box office this in every sense. It set off enormous tsunamis. It sent debris ters. You will remember that last year, we dispatched the
year. Trade experts said American films that shooting so high that some of it actually escaped the Earth’s DART mission to crash into the asteroid Dimorphos in an
are increasingly finding an audience in small gravity and has roamed through the solar system ever attempt to deflect its path. (See my column https://
towns are driving the need for large-format since—one asteroid, you might say, giving birth to plenty bit.ly/3R7OIrW). Dimorphos has a twin called Didymos; the
cinemas in such places, where young viewers more. The rest of the debris fell back to Earth, getting so two orbit each other. Of the aster-
closely follow franchises and characters. heated as it scythed through the atmosphere that on touch- Meteorites that oids that surround the Earth—
In 2019, Hollywood movies made ₹1,250 down, it sparked vast forest fires. are about the pool from where we get the
crore-₹1,300 crore out of the total ₹4,400 All right, it may not have been on a Tuesday afternoon. great majority of our meteor
crore made by theatrical releases across lan- Jalon Christian, foreground, and Dwayne Johnson in a scene from Black Adam. This image has But the collision is thought to have happened in the north- 1 kilometre strikes—about 15% are “binaries”
guages in India. Hollywood has also been released by Warner Bros. Pictures. The movie is slated for release in October. AP ern hemisphere’s spring, so March is a safe guess. across hit us like Didymos and Dimorphos.
rebounded far better than Hindi films in the Shift focus to a cloudy Tuesday morning in 1908, when about every one Yet, of the 200 impact craters on
post-pandemic period. ever and Avatar 2, scheduled for October, popular in India, but continue to remain a an enormous explosion flattened some 80 million (!) trees million years Earth, you can just about count
“Along with large-scale south Indian films, November and December respectively, are luxury with tremendous growth potential, he in a 2000 sq. km area near the Tunguska River in central on one hand—far less than 15%,
the general perception among audiences expected to emerge among the highest gross- said. Russia. This catastrophe was caused by an asteroid thought anyway—those that were caused
today is that Hollywood cinema is best ing Hollywood films in India considering the Carnival’s Sawhney added that if the Holly- to be about 50-60m wide. Unlike Chicxulub, it left no by binary strikes.
enjoyed in theatres which explains ₹100 huge buzz and anticipation around them, wood film doesn’t open in India on the same impact crater. The huge rock had become so hot as it flew All of which leads up to an unusual discovery some
crore plus numbers even for a film like Thor Vishal Sawhney, director and chief executive day as in the US, piracy could potentially ruin through the atmosphere at nearly 100,000 kmph that it 400km off the coast of Guinea, in West Africa, in 2020.
that was panned by critics,” Atul Mohan, edi- officer, Carnival Cinemas said. box office collections as viewers do not want exploded when it was still a few km above the surface. Using a technique called “seismic reflection”, similar to
tor of trade magazine Complete Cinema said. Hollywood is recovering well after the pan- to wait for a later-day release. That definitely was a Tuesday morning. It was June the ultrasound, scientists came across “a 8.5-km-wide struc-
This comes at a time when top That said, increasing footfall and a 30th and everybody was feeling fine, at least until the blast. ture buried below ~300 to 400 m of Paleogene sediment
Hindi film stars such as GOOD SHOW promising movie line-up bode well for It’s a largely uninhabited forest area, but there were reports with characteristics consistent with a complex impact cra-
Akshay Kumar and Ajay the growth of large format cinemas and that three people were killed. ter.” (The Nadir Crater offshore West Africa: A candidate Cre-
Devgn have been struggling HOLLYWOOD is IN 2019, Hollywood THE industry has Hollywood box office in India. There’s plenty more to say about these spectacular, taceous-Paleogene impact structure, https://bit.ly/3wHcwdW,
to woo audiences to theatres expected to
maintain or improve
movies made up to
₹1,300 crore through
also rebounded far
better than Hindi
“India is a very attractive market for calamitous events. But leave all of it aside and speculate with 17 August 2022).
to watch their tentpole films, its share in the Indian theatrical releases films in the post- IMAX and we hope to double down on me. Take a look at the Moon sometime through binoculars What’s more, this crater is estimated to be ... 66 million
Mohan pointed out. box office this year across India pandemic period the number of titles —both Indian and or a telescope—or just look at any photograph of our faithful years old. The same age as Chicxulub. This is why it’s set off
Close on the heels of Spi- Hollywood—in 2023. As a brand, IMAX satellite. You’ll note that its surface is pockmarked with cra- a buzz in paleogeological circles. Was this a binary strike?
der-Man: No Way Home that now has growing presence in cities ters. That’s only to be expected, really. After all, there’s Could the Chicxulub rock and whatever caused the smaller
made over ₹218 crore upon its release in India demic as people discover new entertainment beyond metros. We will soon open up in plenty of debris floating about out there, and collisions are Nadir Crater have both come from a “common parent aster-
last December, Hollywood has given hits like on streaming services, said Ashish Kanakia, Coimbatore and a few more tier-II markets. inevitable. So why, then, is there only scattered evidence of oid” that broke up, maybe on entry into our atmosphere?
The Batman (₹48.10 crore), Doctor Strange chief executive officer of multiplex chain This helps us generate incremental box office impacts, like Chicxulub, on Earth? Why is the Earth not Were the dinosaurs hit by more than one asteroid, not
(₹130 crore), Top Gun: Maverick (₹34.50 MovieMax. However, challenges in India revenues for Indian and international con- pockmarked like the Moon? Is something protecting our that they would have really cared?
crore), Jurassic World Dominion (₹68.56 arise from the fact that with advancements in tent even from smaller towns,” said Preetham planet?
crore) and Thor: Love and Thunder (₹101.71 technology, the trend globally is moving Daniel, vice-president, theatre development Well, yes. It’s called an atmosphere. Certainly, bits of Once a computer scientist, Dilip D’Souza now lives in Mum-
crore) over the past few months. towards large formats and larger screens. at IMAX, India, south east Asia, Australia and space debris constantly collide with the Earth. What saves bai and writes for his dinners. His Twitter handle is @Death-
Black Adam, Black Panther: Wakanda For- Premium large format theatres are becoming New Zealand. us is that the great majority of them are destroyed as they EndsFun.

MADHYA PRADESH ROAD DEVELOPMENT CORPORATION LIMITED

(Govt. of M.P. Undertaking), 45-A, Arera Hills, Bhopal-462011, Madhya Pradesh
Ph. : 0755-2527290, 2765205 (EPBX), Fax : 0755-2572643
DELHI JAL BOARD, GOVT OF NCT OF DELHI
Website : www.mprdc.gov.in, CIN : U45203MP2004SGC016758
OFFICE OF THE ADDITIONAL CHIEF ENGINEER M-6
MU BLOCK PITAMPURA, NEW DELHI-110034 NIT No. 9679/583/MPRDC/Procu/2022 Bhopal, Date : 29.08.2022
PRESS NIT NO. 30 (2022-23) NOTICE INVITING TENDERS
Item Name of Work Estimated Date of release Last date/time of
No. Cost of tender in receipt of tender Madhya Pradesh Road Development Corporation Limited (MPRDC) Bhopal invites online
E-procurement solution through e-procurement tender for following work.
1. Improvement of water supply by providing/ 36,94,102/- Tender ID No. 12.09.2022
laying and replacement of water line near Dog 2022_DJB_228400_1 Up to 3.00 PM S. Name of Work Bid Security Cost of Bid
Clinic/Vishal Chakki and Adjoining area in on 29.08.2022 at No. (EMD) Document
Basaidarapur Village under EE (M26). 12.10 P.M
2. Replacement of old/Damaged sewer line of 300 Item Rate Tender ID No. 12.09.2022
(in INR Lakhs) (in Rs.)
mm dia from H. no. 01 to 13 in B-2 Block Paschim (EMD 2022_DJB_228400_2 Up to 3.00 PM
Vihar behind doon public school by 315 mm dia Rs. 69,000/-) on 29.08.2022 at
1. Consultancy Services for Preparation of Detailed Project 10.00 30,000/-
DHPE pipe with pipe busting method in Shakur 12.10 P.M Report (DPR) of 21 Flyovers under Setu Bandhan
Basti Constituency AC-15 under AEE M15. Yojana in the State of Madhya Pradesh.
3. Replacement of old damaged deep 350 mm dia Item Rate Tender ID No. 12.09.2022
sewer line in narrow road by pantode method (EMD 2022_DJB_228400_3 Up to 3.00 PM The dates for purchase, submission, etc. are mentioned in the key dates. Tender forms can
at K-block JJ Colony, Wazirpur AC-17, under Rs. 98,500/-) on 29.08.2022 at
AEE(M)17 (Re-invited) 12.11 PM be purchased online only upto 15:30 hrs. on 03.10.2022 for aforesaid work from website
4. Improvement of water supply at tail end area 47,62,988/- Tender ID No. 12.09.2022 www.mptenders.gov.in. The bidders have to submit the Technical bid as well as Financial
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line from Swaminarayan marg near Ambedkar on 29.08.2022 at
Chowk, Sawan Park Ward No. 73-N Wairpur 12.12 P.M www.mptenders.gov.in only. If holiday is declared by Govt. of M.P. on the date of opening,
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Further details in this regard can be seen at https://govtprocurement.delhi.gov.in MPRDC reserves the right to accept/reject any/all tenders without assigning any reason
ISSUED BY P.R.O. (WATER) “STOP CORONA: Wear Mask, Follow Physical (Trilok Chand) thereof.
Advt. No. J.S.V. 314 (2022-23) Distancing, Maintain Hand Hygiene” EX ENGINEER (T) M-6 M.P. Madhyam/106140/2022 MANAGING DIRECTOR

BOARD OF SECONDARY EDUCATION,

MADHYA PRADESH
Shivaji Nagar, Bhopal-462011
No./963/DATA/2022 Bhopal, Dated : 26.08.2022
NOTICE INVITING TENDER
MUNICIPAL CORPORATION OF GREATER MUMBAI Online tenders are invited for "Data Processing for conduct of
K.E.M. HOSPITAL, PAREL examination and Result Processing for NTSE and NMMSS
No. KEM/2317/AEME dated 01.09.2022 examinations (around 2.80 Lakhs Candidates are expected
E-tender notice to appear in the examination) conducted by the BSE for the
DEPARTMENT :- DEPARTMENT KEM Hospital academic year 2022-23. Only Computer Firms located outside
BID INVITATION NO. :- Bid No. 7200035816 the State of Madhya Pradesh may participate in the tender
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08 Friday, 2 SepteMber 2022
MuMbai GLOBAL LIVEMINT.COM

m MINT SHORTS
Ex-Malaysian first lady ordered
Global VPN providers pull India
to serve 10 years for graft
Kuala Lumpur: Former Malaysian first lady Rosmah Mansor
was ordered to serve 10 years in prison after being found guilty
of soliciting and receiving bribes during her husband’s corrup-
tion-tainted administration, a week after he was imprisoned over
servers over new cyber rules
the massive looting of the 1MDB state fund. Rosmah was con-
victed on a charge of soliciting 187.5 million ringgit ($42 million)
and two charges of receiving 6.5 million ringgit ($1.5 million)
between 2016 and 2017. AP Services say new rules threaten users’ privacy and are like those imposed in Russia and China
Russia mulls big purchases of Newley Purnell privacy and security—and lose their
feedback@livemint.com basic functionality or purpose,” said
‘friendly’ FX to stem ruble’s rise Namrata Maheshwari, Asia Pacific

M
BLOOMBERG
ajor global providers policy counsel at digital-rights group
of virtual private net- Access Now.
works, which let inter- Some of the services withdrawing
net users shield their from India say they will allow users to
identities online, are connect to their servers in other
shutting down their servers in India nations, but not directly in India.
to protest new government rules they “We have a similar approach in
say threaten their customers’ privacy. Russia and China, where maintaining
The Indian agency overseeing a physical server presence in the
computer security will soon require regions would require us to comply
VPN operators in India to collect with invasive privacy regulations in
information such as customer’s these countries,” said a spokesman
names, email addresses and the IP for Private Internet Access.
Russia is considering a plan to buy as much as $70 billion in addresses they use to connect to the Also affected by the new rules are
yuan and other “friendly” currencies this year to slow the internet. Providers must maintain the global cloud operators, which will be
ruble’s surge, before shifting to a longer-term strategy of data for at least five years and furnish required to store and furnish data on
selling its holdings of the Chinese currency to fund invest- the information to authorities when customers.
ment. The proposal is among a slew of measures that would asked. Representatives for Amazon Web
amount to an effective repudiation of more than a decade India’s Computer Emergency Services, Alphabet Inc.’s Google and
of economic policy built around accumulating savings in Response Team has said the new Microsoft Corp. declined to comment
dollars and euros as the Kremlin overhauls its strategy amid rules, which will be implemented on whether they would comply with
sweeping sanctions imposed by the US and its allies over from Sept. 25, are needed to tackle the new regulations, or if they were
Vladimir Putin’s invasion of Ukraine. BLOOMBERG cybercrime and defend the “sover- already following the rules. A spokes-
eignty or integrity of India” and the Some of the services withdrawing from India say they will allow users to connect to their servers in other nations, but man for Apple Inc. didn’t respond to
security of the state. not directly in India. GETTY IMAGES a request for comment.
1MDB unit Brazen Sky files for But the withdrawing VPN compa- US and other tech companies have
nies and internet-rights groups say by panies in the world’s most populous through “tunnels” between their ser- India’s Computer Emergency been pouring billions of dollars into
bankruptcy protection in the US collecting such data, the companies democracy, where New Delhi has vices and customers’ computers. Response Team didn’t respond to a India in recent years to make inroads
A unit of Malaysia’s state-owned investment fund 1MDB — which will imperil their users’ privacy and moved to rein in global tech giants. Other VPN services that have request for comment on the services’ in the world’s biggest untapped tech
has spurred investigations around the world into deal-making curtail online speech. Digital groups The government has in recent years stopped operating servers in India in withdrawal. India’s minister of state market, where hundreds of millions
and political patronage under former PM Najib Razak — is seek- say the government’s rules amount to moved to tamp down online dissent recent months are some of the for technology, Rajeev Chandrase- of people are getting online for the
ing bankruptcy protection in the US. Brazen Sky Ltd, which is overreach and are more typical of on platforms such as Twitter Inc. and world’s best known. They include khar, has said publicly that the new first time.
owned by 1Malaysia Development Bhd., filed for Chapter 15 in the those imposed in China or Russia Meta Platforms Inc.’s Facebook. U.S.-based Private Internet Access rules are needed to prevent cyber- The Wall Street Journal reported
Florida court, according to a filing. BLOOMBERG than in democracies. Indian police last year arrested a and IPVanish, Canada-based Tunnel- crimes, and that if VPN services don’t last year that India’s government
Such rules are “typically intro- woman for alleg- Bear, British Vir- want to comply, they should exit threatened to jail employees of Twit-
duced by authoritarian governments edly helping activ- gin Islands-based India. “If your business model ter, Facebook and WhatsApp,
AMD says US told it to stop in order to gain more control over ist Greta Thun- ExpressVPN, and depends on anonymous use of data prompted by the tech companies’
their citizens,” said a spokeswoman berg in what they Lithuania-based centers, the cloud, and VPNs sitting reluctance to comply with data and
shipping top AI chip to China for Nord Security, provider of called a possible criminal conspiracy Surfshark. on those infrastructure, that won’t takedown requests related to protests
BLOOMBERG
NordVPN, which has stopped operat- to support protests in India by shar- ExpressVPN said it “refuses to par- work” because tech companies have against the government. The Indian
ing its servers in India. “If democra- ing an online tool kit with informa- ticipate in the Indian government’s an obligation to produce information government has said that foreign
cies follow the same path, it has the tion on how to bring attention to their attempts to limit internet freedom.” related to crimes, Mr. Chandrasekhar companies must comply with local
potential to affect people’s privacy as cause. The government’s move “severely said in July. laws.
well as their freedom of speech,” she VPNs typically allow users to mask undermines the online privacy of Complying with the regulations —Tripti Lahiri contributed to this
said. The rules are the latest challenge their location and identities by Indian residents,” Private Internet would mean VPN companies will article.
facing international technology com- encrypting and routing their traffic Access said. “cease to provide their core service— ©2022 DOW JONES & COMPANY, INC

IMF set to provide $2.9 billion Oil sinks further to test Opec’s
Advanced Micro Devices Inc on Wednesday said the US
officials have told it to stop exporting its top artificial intelli-
gence chip to China, according to a spokesman. The com-
to help crisis-hit Sri Lanka resolve amid demand issues
pany said new license requirements prevent shipment of
its MI250 chips to China but it believes its MI100 chips are AP willing to provide these assur- Bloomberg 20% in the three months
not affected by the new requirement. The company said it feedback@livemint.com ances, that will deepen the cri- feedback@livemint.com through August, overturning
does not believe the new rules will have a material impact COLOMBO, Sri LaNka sis in Sri Lanka and would all of the gains since Russia’s

O
on its business. REUTERS undermine its repayment il fell for a third day as invasion of Ukraine at the end

T
he International Mone- capacity,” he said. demand concerns of February. It has prompted
tary Fund announced He said a collaboration continue to escalate Saudi Arabia to signal that the
Arm sues Qualcomm, aiming to Thursday it has reached between the creditors and Sri and the dollar rose, joining a Organization of Petroleum
a preliminary agreement to Lanka will help the nation sell-off of assets from equities Exporting Countries and its
unwind $1.4 billion Nuvia purchase provide Sri Lanka with $2.9 emerge from the crisis faster, to metals. allies could cut supply. The
San Francisco: Chip technology firm Arm Ltd, which is owned billion over four years to help and suggested holding a forum West Texas Intermediate group is scheduled to gather
by Softbank Group Corp, on Wednesday said it had sued Qual- it recover from its worst eco- between the two sides on futures dropped below $88 a on Monday to discuss output
comm Inc and Qualcomm’s recently acquired chip design firm nomic crisis. restructuring its debts. barrel, after falling for a third policy. “What it could translate
Nuvia Inc for breach of license agreements and trademark The arrangement will help Sri Lanka is in the midst of consecutive month in August into is Opec potentially once
infringement. Qualcomm, which acquired Nuvia for $1.4 billion restore financial and macroe- The arrangement will help an unprecedented economic in the longest run since April Oil has declined by more than again cutting production if
last year, said Arm has no right to interfere with Qualcomm’s or conomic stability and debt restore financial stability in crisis with acute months long 2020. Investors are focusing 20% in three months. REUTERS prices get too low, that makes
NUVIA’s innovations. REUTERS sustainability as well as enable the island nation. REUTERS shortages of essentials such as on tighter monetary policy me believe that the downside
the country’s growth poten- fuel, medicine and cooking gas around the world, which could week, and that is the hawkish is limited ahead of Monday’s
tial, an IMF team visiting Sri restored. due to a severe shortage of for- crimp economic growth and rhetoric from the Federal meeting,” Hansen said.
Alibaba’s Lazada eyes Europe push Lanka said in a statement. Speaking to reporters in eign currency. Though cook- eventually hit oil demand. The Reserve,” said Ole Hansen, Among the items that
The package is contingent Colombo, the IMF’s Peter ing gas supplies were restored lockdown of the Chinese Saxo Bank’s head of commod- OPEC+ ministers may weigh
to take on Amazon, Zalando on approval from the IMF Breuer said that since Sri through World Bank support, megacity of Chengdu to con- ity strategy. “In addition, the up is a US-led plan to cap the
Alibaba Group Holding Ltd’s Lazada Group is preparing to make management and executive Lanka’s debt is currently shortages of fuel, critical medi- tain a Covid-19 outbreak demand outlook for China price of Russian crude in a bid
its maiden foray into Europe, building on its success in Southeast board, as well as on receiving unsustainable, the lender will cines and some food items added to the negative senti- looks dire — it’s settling into a to deprive Moscow of funds
Asia to take on rivals such as Amazon.com Inc. and Zalando SE assurances from Sri Lanka’s need to see an engagement continue. The island nation ment. 9-10 million barrel a day con- amid the war in Ukraine. The
in one of the biggest online shopping markets. Its specific plans creditors, which include between the country and its has suspended repayment of “The fuel for the drop is sumption rate compared with proposal has been gathering
will depend on macroeconomic and market conditions, Lazada China, India and Japan, that creditors before it can commit nearly $7 billion in foreign most certainly what is driving 10-12 in recent years.” support, with the UK govern-
Group CEO James Dong, 43, told Bloomberg News. BLOOMBERG debt sustainability will be resources. “If creditors are not debt due this year. every asset class lower this Oil declined by more than ment signaling its approval.

Hopes for Fed pivot have faded, sapping stocks’ momentum

Akane Otani would be able to pull off a soft which were among the biggest ment’s data to show employers news could be simply that: bad Journal had expected to see.
feedback@livemint.com landing, a scenario in which it gainers in the summer rally. added 318,000 jobs in August news all around. “I wouldn’t be surprised if
slows down the economy Meme stocks, shares tied to while the unemployment rate “The challenge for the mar- Friday’s report was a big disap-

N
ot long ago, many without causing a prolonged cryptocurrencies and technol- stayed at 3.5%, matching Feb- kets is, even if the Fed thinks pointment,” Mr Schutte said.
investors thought the or deep recession. ogy stocks have slumped in the ruary 2020’s half-century low. the economy is slowing, that Federal-funds futures show
Federal Reserve would To be sure, few believe a past week. A strong report could give inflation is slowing…they’re the market pricing in a 69%
cut interest rates next year. protracted downturn is immi- “With each interest rate the Fed more resolve to keep not going to talk differently chance of the Fed raising
Now, few do. nent. Consumer spending has hike, the ability to stick that raising interest rates, since so until they’re thoroughly con- interest rates by 0.75 percent-
The shift in thinking around remained resilient despite landing and make everyone far, the labor vinced that infla- age point in September,
the Fed’s policy direction, inflation pushing prices happy…that’s getting more market has Further interest tion is tamed,” according to CME Group’s
spurred by Fed Chairman Jer- higher. The labor market also and more difficult to do,” said remained tight rate increases said Keith Lerner, FedWatch tool.
ome Powell’s speech in Jack- still looks robust. But money Rod von Lipsey, a managing despite rates threaten to put co-chief invest- That is up significantly from
son Hole, Wyo., last week, is managers director at going up. What more pressure on ment officer of one month ago, when market
taking the steam out of the say a sce- UBS Private about a weak Truist Advisory expectations for a rate increase
expensive parts
summer rally that had helped nario in Wealth report? Services. of that size stood at 28%.
stocks, bonds and cryptocur- which the Manage- For much of of the stock That means for The Fed has clearly commu-
rencies bounce back from Fed avoids causing a recession ment. UBS strategists now see the decade fol- market the markets, “a nicated that it will have to be
their lows. altogether looks increasingly a 60% chance of the economy lowing the little bit of bad aggressive in raising interest
US stocks have fallen every unlikely, given the central entering a recession sometime The possibility of recession has made it difficult for investors to 2007-08 finan- news could go a rates to get inflation under
day since Mr Powell stressed bank is determined not to in the next year, up from 40% be optimistic about markets’ path in the coming months AFP cial crisis, investors cited the long way,” Mr. Lerner said. control, even if that winds up
that the central bank must repeat its mistake from the in June. mantra that bad economic At least one report has causing a recession, said Mr.
keep raising interest rates and 1970s of prematurely easing The possibility of recession recessions going back to 1946, Northwestern Mutual Wealth news could be good news for already shown some signs of von Lipsey of UBS.
then hold them at high levels monetary policy. has made it difficult for inves- according to Deutsche Bank. Management Co. markets, since it should push cooling in the labor market. “The medicine to cure the
to fight inflation, even if it Even without a recession, tors to be optimistic about With the S&P 500 currently The general unease among the Fed to delay or scale back Data released Wednesday illness of inflation will be the
hurts economic growth. It investors see the potential for markets’ path in the coming down 17% for the year, stocks investors raises the stakes plans for its interest-rate by payroll processor ADP cause of a recession. Investors
marks a shift from earlier in pain ahead: Further interest- months. Economic downturns appear to have already priced ahead of Friday’s jobs report. increases. showed private employers are debating what’s worse, the
the summer, when investors rate increases threaten to put have historically been bad in a mild recession—but not a Economists surveyed by The This time around, some added 132,000 jobs in August, illness or the cure,” he said.
bet that inflation had peaked more pressure on expensive news for stocks: The S&P 500 deep one, said Brent Schutte, Wall Street Journal are investors say the dynamic far less than the 300,000 ©2022 DOW JONES & COMPANY,
and that the central bank parts of the stock market, has fallen a median of 24% in chief investment officer of expecting the Labor Depart- looks different. Bad economic economists surveyed by the INC
LIVEMINT.COM NeWs WRaP Friday, 2 SepteMber 2022
MuMbai 09

TWEETS & QUOTES

Vineeta Singh Prabhdeep Kaur Narendra Modi
Rama Mohan Rao @vineetasng @kprabhdeep @narendramodi
Amara CEO, SUGAR Cosmetics Sr scientist, ICMR Prime Minister
MD & CEO, SBI Cards If you’re leaving a corporate Every time I’m in a Tomorrow is a landmark day
Card tokenization is a career to work at a startup, field visit, I’m inspired for India’s efforts to become
good measure in terms remember that one of the by hard work & dedi- Aatmanirbhar in defence
of protecting consumer most important ingredients cation of our nurses, sector. Indigenously designed
interest & ensuring you’ll need to succeed there community health & built aircraft carrier INS
against data leakage is belief... officers & ASHAs... Vikrant will be commissioned..

Unacademy CMO SOUTHERN SOJOURN NDTV: Stake sale

Shroff steps down needs I-T approval

I N
n a senior level exit at Softbank-backed edtech ew Delhi Television (NDTV) Ltd said a major
unicorn Unacademy, the firm’s partner and stake sale by its founders to Adani group
chief marketing officer Karan Shroff has quit would require clearance from tax authorities,
the startup. In a LinkedIn post on Thursday, adding another hurdle to the conglomerate’s bid to
Shroff informed that he would be parting ways take control of the popular news network.
with Unacademy after three years. “I will be The income tax department in 2017
hanging my boots at Unacademy. Over three provisionally barred the founders—Prannoy and
years of memories, tons of awards, a great team Radhika Roy—from selling a part of their stake as
that taught me a lot and a journey that I will part of a reassessment of their taxes, NDTV said in
always cherish,” he wrote. an exchange filing late on Wednesday .
On Shroff’s exit, Gaurav Munjal, CEO and co- Adani, meanwhile, rejected NDTV’s claims,
founder at Unacademy said, “After over three saying no such approval was needed and that the
years of building the Unacademy brand, Karan founders are trying “to further inordinately
Shroff, partner and CMO of Unacademy has delay” the deal.
decided to move on. We thank Karan NDTV and Adani have locked horns in public
immensely for his contributions towards after the conglomerate last week unveiled plans to
building Unacademy into one of the most Iconic control a majority stake in the news network. Shares
brands of India. He will transition out of his role in NDTV rose to the maximum permitted limit of 5%
after six months at Unacademy. We wish him all in morning trade on Thursday, their sixth straight
the very best for his future endeavours.” day of gains after Adani’s announcement. REUTERS
SHUBHOBROTA DEVROY

Prime Minister Minister Narendra Modi inaugurates various projects of Kochi Metro and Indian Railways in Kochi, Kerala on Thursday. PTI

Durex condom maker Reckitt The finance ministry has not accepted the
recommendations of DGTR. MINT
AB InBev is launching two variants.

Hoegaarden range
ISTOCK

announces surprise CEO exit Ammonium nitrate

duty not extended
expanded in India
T
he government has decided not to extend

A
nheuser-Busch InBev, the liquor the anti-dumping duty imposed on
company behind beers such as Laxman Narasimhan will step down at the end of Sep after three years in the role ammonium nitrate imported from Russia,
Budweiser, Corona Extra and Seven Iran and Georgia.
Rivers, is launching variants for its Belgian The finance ministry has not accepted the
wheat beer brand Hoegaarden in India. Reuters three years and just starting to receive some credi- will receive a salary of 1.1 million pounds ($1.3 mil- recommendations of the directorate general of
The variants, the company said, will target feedback@livemint.com bility,” said Tineke Frikee, fund manager at Reck- lion) as Reckitt CEO, the company said, adding trade remedies (DGTR).The commerce
both beer and white spirits drinkers in the itt shareholder Waverton Investment Manage- that he is being appointed on a rolling contract ministry’s investigation arm DGTR had

R
country and is expected to fetch 15% eckitt Benckiser chief executive officer ment. with six months’ notice on either side. conducted a probe to review the need for
incremental volume for its Hoegaarden Laxman Narasimhan will step down at Narasimhan, 55, joined the company in Sep- Chairman Chris Sinclair and the nomination continuing imposition of anti-dumping duty on
franchise in India. the end of September after three years tember 2019 from PepsiCo and was the first exter- committee have started the process to identify the product imported from these countries,
Capitalizing on the growing consumer trend in the role, the company said on Thurs- nal candidate to “the best long-term following a complaint from the domestic
for flavours and styles in the wheat beer day, taking investors by surprise and take the helm at candidate to take industry.
category, AB InBev is launching two variants— sending its share price down sharply. Reckitt since it was Narasimhan, 55, joined the company Reckitt on its next In June, the directorate recommended an
Rosée and Nectarine (raspberry and peach Narasimhan will be replaced temporarily by formed in 1999. from PepsiCo and was the first phase of growth”, extension of the duty on imports for two more
flavours respectively). senior independent director and former British Narasimhan led
To begin with, these will be available in American Tobacco (BAT) boss Nicandro Durante the household external candidate to take the helm theNcompany arasimhan
said. years. “...the central government after
considering the final findings of DGTR has
Bengaluru, Mumbai, Pune, and Thane. The while the board “evaluates and selects the future goods m a k e r at Reckitt since it was formed in 1999. decided to leave for decided not to accept the recommendations,”
company plans to launch them in markets like leadership”, Reckitt said in a statement. through the pan- personal reasons the department of revenue has said in an office
Delhi, Gurgaon, Chandigarh in the coming days, Shares in the maker of Durex condoms and demic, which and to relocate to memorandum. PTI
said the company’s vice president, marketing & Dettol cleaning products tumbled more than 4% boosted sales of its health and hygiene products, the United States, having been approached with
new business development, Vineet Sharma. on the news. JP Morgan analysts cited Narasim- and as the company navigated a baby formula cri- a new opportunity there, Reckitt said without
The company started manufacturing the han’s sudden departure just when investor confi- sis in the US. elaborating.
Hoegaarden brand in 2020 locally, said Sharma,
adding that its sales volume have surpassed its
dence in the group’s turnaround was improving.
“It was a surprise to find out Reckitt’s CEO is
Brazilian-Italian Durante previously led Neither Narasimhan nor Durante responded to
tobacco giant BAT for eight years until 2019. He requests for comment via their LinkedIn
SpiceJet flight
2021 numbers. VARUNI KHOSLA stepping down, having only been in the role for joined Reckitt’s board in 2013. The 66-year old accounts.
returns midway

A
SpiceJet plane, carrying 89 passengers,
Ex-ITC Agribiz CEO that took off for Nashik from the national
Commercial LPG price dips by ₹91.5 capital on Thursday returned midway
on Zetwerk’s board due to an “autopilot” snag and aviation regulator
Directorate General of Civil Aviation (DGCA)
in a fortnight. The price of a 19-kg will probe the incident, according to an official.

G
lobal contract manufacturing platform commercial LPG cylinder was cut to ₹1,885 The Boeing 737 plane landed safely and the
Zetwerk has decided to appoint former per cylinder in the national capital from passengers were later flown to Nashik in
ITC Agribiz chief executive Sanjiv ₹1,976.50, according to a price notification another aircraft.
Rangrass to its board of directors. Zetwerk from state-owned fuel retailers. This is the latest in a series of incidents
Manufacturing Businesses on Thursday said it This is in line with softening involving planes of SpiceJet, which was ordered
would appoint Rangrass as an independent international prices. However, rates of LPG by DGCA on 27 July to operate only 50% of its
director and board member. used in household kitchens for cooking flights for eight weeks. The order had come in
Rangrass has had a long and illustrious career purposes remained unchanged at ₹1,053 the wake of various SpiceJet aircraft facing
of 40 years at ITC Ltd, where he joined as a per 14.2-kg cylinder. This because the rates technical issues.
trainee and became the CEO of the company’s of domestic cooking gas were way lower SpiceJet B737 aircraft VT-SLP, operating
agribusiness unit before retiring in June 2022 as than cost and now with a drop in Dawood Ibrahim is a key accused in the 1993 flight SG-8363 (Delhi-Nashik), on Thursday was
the conglomerate’s group head for R&D, international prices they are at breakeven, Mumbai serial blasts. MINT involved in an air turnback due to an autopilot
Sustainability and projects. He is also an active The price of a 19-kg commercial LPG industry sources said. snag, a DGCA official said. The DGCA will probe
investor and has a track record of making angel
investments in a few unicorns, including
cylinder was cut to ₹1,885 per cylinder. MINT Commercial LPG rates on the other
hand have largely been aligned with cost
Reward of ₹ 25 lakh the incident, the official added. PTI

T on Dawood Ibrahim
Zetwerk. Commenting on the development, he price of commercial LPG used in and so they have moved in tandem with
Amrit Acharya, co-founder & CEO, Zetwerk hotels and restaurants on Thursday rise and fall in international rates and this
said, “We are excited to announce that Sanjiv was slashed by ₹91.5 per cylinder on difference between a market-priced
Govt hikes taxes on
T
Rangrass will be joining Zetwerk’s board of softening international prices, but oil commercial LPG and below-cost he National Investigation Agency (NIA)
directors. Rangrass has witnessed Zetwerk’s
journey from its initial days and thoroughly
companies have made no changes in rates
of domestic cooking gas and rather began
household cooking gas had led to diversion
of cylinders meant for kitchens into
has announced a cash reward of ₹25 lakh
for any information leading to the arrest of aviation fuel export
understands the company’s business, growth imposing limits on refills a user can order commercial establishments. PTI fugitive underworld don Dawood Ibrahim, a key

T
and culture.” STAFF WRITER accused in the 1993 Mumbai serial blasts, an he government has hiked the windfall
official said on Thursday.The probe agency has profit tax on the export of diesel to ₹13.5
also announced a cash reward of ₹20 lakh on per litre and on jet fuel exports to ₹9 per
Ibrahim’s close aide Shakeel Shaikh alias litre, besides raising the levy on domestically-
Record hatching of saltwater crocodiles in Bhitarkanika Chhota Shakeel, and ₹15 lakh each on associates
Haji Anees alias Anees Ibrahim Shaikh, Javed
produced crude oil in line with the hardening of
global prices. At the fourth fortnightly review,
Patel alias Javed Chikna and Ibrahim Mushtaq the government raised the windfall profit tax on

A
record number of around 3,700 baby saltwater crocodiles have Abdul Razzak Memon alias Tiger Memon, he the export of diesel to ₹13.5 per litre from ₹7 per
broken out of eggshells to make their way to the water bodies of the said. All of them are wanted accused in the case litre. The tax on Aviation Turbine Fuel (ATF)
Bhitarkanika National Park in Odisha, an official said. of 1993 Mumbai serial bomb blasts. exports too has been hiked to ₹9 from ₹2 per
They emerged from as many as 122 nesting sites that were spotted in the The official said the NIA has sought litre with effect from 1 September, according to a
wildlife sanctuary in Kendrapara district in comparison to 84 the previous information about them which could lead to finance ministry notification issued late
year, he said. their arrest. Wednesday night. Alongside, the tax on
Hatching of the eggs has commenced since the past two days and will The agency had in February registered a case domestically-produced crude oil too has been
continue for a fortnight, the forest department official said, adding that against the ‘D company’. hiked to ₹13,300 per tonne from ₹13,000.
around 2,500 crocodiles had emerged from the nests last year. Dawood Ibrahim Kaskar is designated a The tax on exports has been raised as margins
“The sight of baby crocs breaking out of eggshells and loitering aimlessly global terrorist by the United Nation runs an rose, while the levy on domestically-produced
before hopping into the water bodies and creeks is nothing less than a visual international terrorist network, namely D- oil was increased marginally on slight changes in
treat,” he said. Company, with his close associates like Anees international oil prices and on expectations of a
The estuarine crocodiles typically build nests adjacent to mangrove twigs, Ibrahim Shaikh, Chhota Shakeel, Javed price rise on hopes of a production cut by the
leaves and mud on a high ground, where it can get direct sunlight and is free Chikhna and Tiger Memon, among others, the Organization of Petroleum Exporting Countries
from inundation. PTI Around 3,700 baby crocodiles have broken out of eggshells. NIA said in a statement. PTI (OPEC) and its allies. PTI
10 Friday, 2 SepteMber 2022
MuMbai LONG STORY LIVEMINT.COM

REPoRTAGE | TAlkING PoINTs | IDEAs | INsIGHT | THE BoTTomlINE

SORRY, CONSUMERS
AREN’T BUYING IT
Despite high GDP growth rates, aspirational Indian consumers are not willing to spend just yet. Is a turnaround near?

Yashwant Deshmukh & Sutanu Guru

mint
feedback@livemint.com
SHORT
NeW DelHi STORY

T
here’s a seeming mismatch
between India’s high GDP WHAT
growth rates and persistently
weak consumer sentiments. We The just-released GDP growth
have tried explaining this phe- rates present an Indian
nomenon in two articles in Mint before. In economy that seems to be
both, we have quoted the Nobel Prize win- shining bright if not dazzling.
ning behavioural economist Richard Tha- However, the Indian consumer
ler. It’s time again for a Thaler quote to still seems unwilling to spend.
explain the psychology of the average
Indian consumer living in an average
AND
TIGHTENED WALLETS
household.
“Giving up the opportunity to sell
something does not hurt as much as tak- A nationwide survey conducted
ing the money out of your wallet to pay for Indian consumers still remain uncertain and hesitant to spend. Bitten by inflation, they are struggling to manage household by CVoter, using random
it. Opportunity costs are vague and sampling techniques, underlines
expenses. Perhaps, their income levels haven’t risen or haven’t recovered post the covid-19 pandemic, despite high GDP the hesitancy. The spikes in sales
abstract when compared to handing over
actual cash,” Thaler writes. growth rates. The big question: will the country’s growth rate run out of steam during the rest of 2022-23 because of of goods and services could be
The GDP growth rates just released persistently weak consumer sentiments? due to pent-up demand.
present an Indian economy that seems to
be shining bright, if not dazzling. Then Chart 1. Four out of five Indians did not go on a vacation this year Chart 2. Very few bought a new TV or
why does the Indian consumer feel acute Responses on whether they and their family went on a vacation this year (in %) smartphone, the rich were twice as BUT
pain and hurt to pay for something? Yes, went for a vacation Yes, went for a vacation BUT not Did not go for a likely as the poor to buy these
As mentioned in our piece published on during the summer holidays during the summer holidays vacation There are some encouraging
% respondents who have bought a smartphone, LED TV or signs. Green shoots of recovery
18 June 2022, the biggest challenge con- other expensive gadgets since January 2022
fronting finance minister Nirmala Sithar- 18-24 years are visible. And a higher
aman and her team is reviving consumer 20.8 percentage of Indians expect
sentiments that continue to remain weak. their family’s financial situation to
25-34 years
Sure, it is difficult to exactly measure con- improve, going ahead.
sumer sentiments the way one can meas-
ure unit sales of two-wheelers in a month 35-44 years
or the box-office collections of Bollywood 12.5 sential items. The latest report indicates
10.2 11.1
disasters. But economists and policy mak- that while 82% said expenses on essentials
45-54 years
ers know consumer sentiments are real had increased, 45.5% reported a decrease
and play a decisive role. in expenses on non-essential items.
Since 58-60% of the GDP of India is on 55+ years
account of consumption, sustaining even The coming daWn
a 7% GDP growth rate will be impossible
unless the Indian consumer spends liber-
ally. The problem for Sitharaman is that
Total
Lower- Middle- Higher- Total
T he tantalizing question that arises
from analysing all the data is: will
GDP growth rate run out of steam during
0 20 40 60 80 100 income income income
the Indian consumer still seems unwilling the rest of 2022-23 because of persistently
to spend money, particularly on goods weak consumer sentiments? Is it possible
and services that are not considered items Chart 3. Not many are looking to go on a Chart 4. The majority reported a decline in their that the GDP growth rate could even fall
of daily use. below 6% this year?
A nationwide survey conducted by
shopping spree during festivals income this year Many analysts think so. But, fortunately
CVoter, on 28 and 29 August, using ran- % respondents who are planning to buy these items the coming festive season % respondents whose income since January 2022 has… (in %)
for Nirmala Sitharaman and her team, the
dom sampling techniques, confirms this. Definitely yes Probably yes Probably not Definitely not Increased Stayed the same Decreased data also clearly suggests that while it is
Close to 2,000 respondents were engaged still dark for the Indian consumer, the
during the survey. Some of the questions (in %) dawn could be near. By ‘consumer’, the
Lower-income
asked were also the same in previous sur- 9.6 6.8 authors mean the aspirational middle-
veys—in November 2021, January and 7.3 class Indian. The high-income Indians
June 2022—the results of which were barely suffered— even during the peak of
published in Mint. 29.7 13.8 the pandemic—and have been driving
Middle-income
consumption growth for the last year or so.
Vengeance holidays. Really? The most telling symbol of the gap
49.2
L et’s look at the responses to one ques-
tion to understand the depth of weak
consumer sentiments. In June 2022, we
36.6 Higher-income
between aspirational and high-income
Indians was on display in 2021-22 when
GDP grew at 8.7%. According to data
asked Indians if they had gone on a holi- released by the Society of Indian Automo-
day or were planning to go on one. This 46.9 bile Manufacturers (Siam), two-wheeler
was because the media was awash with Total sales declined 11% to a decade-old record
stories of “vengeance holidays” as well-off registered way back in 2011-12. Despite the
Indians crowded airports ready to take TV/smartphone Car/two-wheeler 0 20 40 60 80 100 brutal lockdowns and other disruptions,
flights to exotic destinations. About 13% two-wheeler sales in 2020-21 were 15.12
said they had gone for a holiday, while million units, while the figure was 13.46
another 19% said they were waiting for Chart 5. Three-fourths are finding it more Chart 6. The rich are relatively more optimistic about their million units in 2021-22.
good bargains. So, every third Indian was difficult to manage their household economic prospects In sharp contrast, car sales grew 13.6%
positively thinking about spending on a to about 3.07 million units in the same
vacation this year (particularly the sum- expenses Responses on family's financial condition in the next one year (in %)
period. There can be no better indicator
mer vacations). Compared to January 2022, managing household expenses has… Will definitely Will probably Too little chance No chance of There are chances There are than this set of data to illustrate how the
improve improve of improvement improvement of it remaining the chances of
Now that the summer vacations are Become rather easy at all same deterioration benefits of a revival in GDP growth did not
over, CVoter again asked Indians in the reach the aspirational middle class.
Become less
latest survey if they had actually gone on difficult
(in %) Yet, the latest data underlines the com-
a vacation this year. Less than 20% of the 4.1 Lower-income ing turnaround.
respondents said they had taken a vaca- Remained
9.1 According to data from Siam, scooter
tion, while more than 80% said they did the same sales zoomed 100% and motorcycle sales
not. After two years of lockdowns, disrup- grew 38% in the April-June quarter of
Middle-income
tions and worse, one would expect more 12.3 2022-23 from the year-ago period. This is
Indian households to spend money on an unmissable signal that the aspirational
holidays. Especially when India clocked a consumer in India is beginning to spend.
GDP growth rate of 8.7% in financial year Higher-income
Along with two-wheelers, smartphones
2021-22. It hasn’t happened. are a powerful symbol of purchasing
Even if it had happened, it would be way intentions of aspirational Indian consum-
below expectations. Approximately 20% of ers. According to data released by market
respondents had some plan—they were 74.6 Total research firm IDC, green shoots of recov-
Become more
waiting for a good deal or opportunity— difficult ery can be seen here, too, with smart-
but only about 7%, or only about one-third phone sales growing 3% to 35 million units
0 20 40 60 80 100
of those who were planning to go on a sum- in the April-June quarter.
mer vacation, eventually went ahead. Two- Sources: Mint-CVoter Consumer Tracker (August 2022) This is further confirmed by responses
thirds of them simply dropped the idea. to the CVoter survey. When asked about
SARVESH KUMAR SHARMA/MINT
future prospects for the family’s financial
Wake-up alaRm situation, 18.1% said it would definitely

S ome might argue that vacations and

holidays are not a true barometer of alarming when one hears the responses to remains uncertain and hesitant.
consumer sentiments. What about televi- future buying intentions. Indians were
improve while 22.4% said it will probably
uary 2022; 36.9% said it has remained the tions on income, price rise and current improve. In contrast, 15.9% said there is no
The reason is simple. Ordinary Indians same, while 51.4% said it has decreased. economic situation as reported by the RBI chance of improvement, while 7% said it
sion sets and smartphones— consumer asked if they plan to buy television sets and are still struggling to manage household Common sense suggests that at a time are similar to the results in the CVoter sur- could deteriorate. This is a significant
products for India’s smartphones during the expenses because income levels are not when high inflation pinches pockets, the vey. Take income, for improvement in senti-
aspirational middle- festive season that is rising (or recovering post the covid-19 average Indian consumer would find it instance. About 36% of ments compared to
class households? After two years of lockdowns, around the corner. A lit- pandemic) despite high GDP growth rates difficult to make ends meet. We asked the respondents in the The high-income Indians 2021. Even the RBI sur-
For an average mid- disruptions and worse, tle less than 10% said they and a clear-cut improvement in the mac- another question: compared to January RBI survey said their barely suffered—even during vey released in August
dle-class Indian con- will “definitely buy”, roeconomic situation in India. 2022, has the difficulty in managing your income has decreased— shows a similar improve-
sumer, television sets one would expect more while another 14% said household expenses increased or lower than 51.4% for the the peak of the pandemic— ment. Close to 52% of the
and smartphones are Indian households to spend “yes, probably”. In con- WheRe’s The money decreased? About three in every four CVoter survey. How- and have been driving respondents said they
not a luxury purchase
but an essential item.
The survey asked Indi-
money on holidays. This
trast, about 76% of
respondents said they D
uring the survey conducted in respondents were of the opinion that it ever, the RBI survey
August 2022, Indians were asked a has become difficult to manage household asked respondents to
will “probably not” and simple question: Has your income expenses. This is grimmer than the figures compare income in July
expect their income to
consumption growth for the increase in the next one
year, while less than 9%
ans if they had pur- hasn’t happened. “definitely not”. increased, decreased or remained the consistently thrown up by CVoter trackers with that in May, while last year or so. felt it would decrease.
chased “costly” televi- The economics is same since January 2022? since March 2020, when two-thirds of CVoter covered the Jan- The authors would
sion sets and smartphones in 2022. The quite simple. If consumers do not spend, To re-emphasize, the GDP growth rate in Indians used to say they find it difficult to uary to August period. Like with the like to conclude with yet another Richard
responses should be a wake-up call for there is simply no way for GDP to grow at 2021-22 was 8.7% and the just released fig- manage household expenses. CVoter survey, the RBI survey confirms Thaler quote: “You can’t make evidence-
policymakers. While 12.5% of the respon- 7%. A lot of the spikes in the sales of goods ures for the June quarter of 2022-23 show The Reserve Bank of India (RBI) comes the fact that about three in every four based policy decisions without evidence.”
dents said they had, a massive 87.5% of the and services are basically pent-up a very healthy GDP growth rate of 13.5%. out with a bi-monthly Consumer Confi- respondents think household expenses Yashwant Deshmukh is founder & editor-
respondents replied in the negative. demand that is being translated into pur- Yet, only 11.7% of the respondents stated dence Survey. The latest one was released have increased. The RBI survey breaks in-chief of CVoter Research Foundation &
The wake-up call becomes even more chases. But the Indian consumer still that their income has increased since Jan- on 5 August 2022. The responses to ques- down expenses into essential and non-es- Sutanu Guru is executive director.
LIVEMINT.COM MINT MONEY FRiday, 2 SepteMbeR 2022
MuMbai 11

Mutual fund intermediation: POWER

POINT
What lies ahead for the industry Respond to this column at
feedback@livemint.com
RAHUL BHUTORIA

KEEP ESOP FOR RISK

Fintech platforms will proliferate, but emotional handholding for investors will have to be done by people.
ALLOCATION, NOT
Maulik M & Satya Sontanam
maulik.madhu@livemint.com ASSET ALLOCATION

W
hich is the best way

T
to invest in mutual he Indian startup ecosystem has come a long way, it has
funds (MFs): the affirmed the belief that startups can grow, scale up and
direct route or the attract large pools of venture capital money. On the other
mutual fund dis- hand, it has created a tremendous amount of wealth for founders
tributor (MFD) and registered invest- and the members of the core team of many startups through
ment adviser (RIA) route? This, and Esops (employee stock ownership plan). This has created a rush
several other aspects, of investing of senior employees looking to make Esops a large part of their
were the focus of a debate by a panel investment strategy.
on ‘What’s next for MF Intermedia- However, there is always more to this than what meets the eye.
tion?’ at Mint’s Mutual Funds Con- It reminds me of an acquaintance who was working with a rapidly
clave 2022, held recently. growing startup and had been allotted Esops on multiple occa-
The panel comprised Amit sions. He had almost 70% of his net worth tied with the Esops.
Bivalkar, founder & CEO, Sapient Things went southwards and the startup failed to raise new funds
Wealth Advisors & Brokers Pvt. Ltd; required for further growth. Ultimately, the startup was acquired
Renu Maheshwari, founder director, at a much lower valuation than that at which it had raised money
Association of Registered Investment in the last round. Due to a clause of ‘liquidation preference’,
Advisors (ARIA) and co-founder, which all early-stage investors have in the term sheet while
Finoscholarz; Srinivas Jain, executive investing in a startup, all the founders and members owning
director and chief of strategy, SBI Esops realized only a meagre amount for their holdings.
Mutual Fund; Anuj Kumar, managing As a multi-family office, we come across situations like this
director, CAMS; and Raghav Iyengar, every other day where Esops are a substantial part of the financial
chief business officer, Axis MF. portfolio of many senior management professionals. It goes with-
Edited excerpts from the panel discus- out saying that on the risk-return metrics, Esops are high-risk,
sion. high-return and highly illiquid investments. Hence, we suggest
Satya Sontanam of Mint talks to Raghav Iyengar, chief business officer, Axis MF; Anuj Kumar, MD, CAMS; Srinivas Jain, executive director and chief of strategy, SBI looking at it from two angles: risk allocation to ensure that there
Why has the share of direct plans MF; Renu Maheshwari, founder director, ARIA & co-founder, Finoscholarz; and Amit Bivalkar, founder & CEO, Sapient Wealth Advisors & Brokers. MINT is a balance between lowly correlated asset classes (and Esops will
remained at 45% of industry naturally fall under the category of equity risk investments) and
AUM—the same as 3 years ago, ₹2.4 crore as SIPs and almost ₹80 lakh and you can see all your holdings in of banks are going to charge you for a management, emotional handhold- risk tolerance as the value of Esops may not appreciate as envis-
despite an increase in the number via the RIA route. SOA mode (non-demat) and demat lot of things that you seek from them, ing, deal closure, and getting the aged or may take longer to monetize.
of fintech players offering this What do you observe from the mode and your ETFs (exchange- we charge you nothing. And then for uninitiated into MFs for the first time Esops are They should not be considered for any
service? portfolios of investors who come traded funds), all in the same state- these integrated platforms, it’s almost will have to be done by people. high-risk, key liquidity requirement.
Amit: I don’t think we should look to you for financial advice? ment. instant service today. AMFI, in its recent campaign, A common argument in support of
at it that way. Intermediation, be it Renu: People come with some bit So far, the unwritten rule in the How is the MFD business going to said it wanted to promote distri- high-return, owning disproportionate number of
advisory or distribution, is very much of MF investments but this has got no industry was that as an intermediary, change in the near future? bution as a career option. Will and highly Esops in the portfolio is the individ-
important. The advent of direct plans alignment with their financial goals. or a broker or advisor, you could only Anuj: I think, there are many do- this change the equation? illiquid ual’s know-how of business and indus-
gave an option to evolved investors to They buy them because someone told show on your property those transac- it-yourself (DIY) people who try to do Raghav: I think the challenge for investments try. So, why not own large part of the
go and buy directly. They are not a them that it will give them a lot of tions that the consumer had done everything on a six inch screen and us as an industry is that we lack inter- business in the form of Esops in the
competition to distribution or inter- returns. There’s a lot of financial illit- with you. That’s going away now, they will continue to do that. They mediation. There’s a lot of fintech and portfolio when it appears to be natu-
mediation. Another thing is, because eracy, and intermediation is going to which means basis the consumers will be self-seekers and will make DIY but investing has largely become ral? A simple answer to this is risk management. The way any
of the stock market boom in the last play the biggest role of taking these consent, we will be able mistakes. And it’s not a personalized experience and for business would not want to be over-reliant on a single customer,
two years, there has been less partici- products to the masses in the country. to download all transac- If we take the RIA just the number that we that you need intermediation. So, I irrespective of how great that customer is for the business, the
pation in direct plans in the retail We believe that RIAs are able to pro- tions and show them to platforms, the see in our industry. If think the challenge for us is to con- same way your portfolio should not be overexposed to Esops.
space. But, on the corporate side and vide a good investment experience to the investor. AUM has grown you see the 20 million vince somebody to become an enter- Also, the notion that established businesses—that have crossed
the family office side, we have seen a an investor. One thing for con- from around demat accounts, each preneur. One, this business takes a lot hurdles of product market fit and customer adoption—don’t have
lot of new W h e n M F sumers that we have
₹35,000 crore in opened in 2020 and of time to build. I think it’s early days any risk is due for a big change. Down rounds are becoming a nor-
accounts getting Central was been trying to do as an 2021, these are exactly yet and we have not seen any great mal thing; a lot of unicorns are delaying their IPOs or the valua-
added on to the l a u n c h e d , industry is to deal with 2019 by four times the people who feel they numbers. tions have changed for them drastically. Therefore, one may not
direct route. MUTUAL FUND$ there w a s nominations. But we to ₹1.3 trillion now don’t need any advice. The other thing is the Sebi sand- consider Esops in their asset allocation but in their risk allocation.
Anuj: The C O N C L A V E 2 0 2 2 d e b a t e o n were not very successful They did not get into box, wherein we can take 5,000 Business creates wealth and Esops are a tool to participate in
45% of direct whether it was because it meant a phys- bank deposits, and then trainees and pay them a certain fixed that. Your investment portfolio is to protect the wealth you have
investment share in ₹38 trillion AUM required when MF Utilities was ical trip to one of the RTA or AMC move to mutual funds and direct remuneration. And this is a big generated, especially during market downturns. Esops create
is perhaps a slightly warped metric. At already there? Can you provide offices. We are seeing very big traffic equity and F&O (futures and options) change because in the past, the regu- returns in multiple and hence there is a natural urge to have a
the aggregate data level, after a long us some statistics on the number in nominee insertion. In terms of and then crypto. They landed at lator has said that upfront payments larger allocation towards them. However, your investment port-
time, individual investors comprise of registered investors and app numbers, we have 85,000 app down- crypto straight. How many of them need to be prohibited and you cannot folio is meant to be a vehicle that delivers consistency of returns
56% (around ₹21 trillion) of our mar- downloads and the key problems loads and 3 lakh registered users and are long-term fatalities? I don’t know. pay someone quasi remuneration. I and a pool of money that you can dive in during times of need.
ket. And 80% of this 56% is intermedi- that investors are facing? about 10,000 login sessions. Now our But a lot of them will never return to think we will get into a pilot mode in One needs to be cognizant of the following:
ated, that is, either through an ARN Anuj: We launched MF Central in expectation is that a good number is the market. So, I think it is clear that the next 2-3 months. So, I think these -Create a capital pool that is protected from the fortunes of the
(AMFI registration number for a dis- September last year. It is the only at least 20 to 30 times bigger than jumping that cycle is not easy. are brilliant initiatives and we need business or startup you are working with.
tributor) or an RIA. So that’s about ₹17 platform which is completely real this. The machines can do transactions more. -A large part of this capital pool is highly liquid and available.
trillion and this number has almost time built as a very thin veneer over If you see the element of automa- and give you the information very Srinivas: I agree with the consen- -Prudent diversification across lowly correlated asset classes
doubled in the last three and a half the RTA system. The MF industry has tion that exists in our industry, and if easily. But there has to be sage advice sus that there is definitely a dire need and geographies is there in the portfolio.
years now. typically for many decades operated you see banking and insurance, we’ve and more than that, there is an emo- for adding more MFDs in the market. -Efficient taxation while exiting these investments and transfer
If we take the RIA platforms, the in the batch mode but here, every- done much better. We give you the tional hand holding part of it, which is So, insurance has about 2.4 million to the next generation.
AUM has grown from around thing is in real time. Any transaction integrated picture of all your holdings very essential. The industry has been agents, and 1.3-1.4 million of that Esops are undoubtedly a great tool to participate in the growth
₹35,000 crore in 2019 by four times that commences will enter the RTA instantly. We give you unlimited ser- debating this for many years. I would comes from LIC itself. In 2021, they of the business , but one should be mindful of not making the for-
to ₹1.3 trillion now. systems directly without any batch- vice without any charges and with conclude that while these platforms added 170,000 new agents. The MF tunes of overall portfolio dependent on it.
Last year, our industry got about ing. MF Central has now integrated just paying the TER on the plan. A lot will proliferate, a lot of relationship industry has only 170,000 agents. Rahul Bhutoria is director & co-founder at Valtrust.

Top 15 health plans for you Which BAFs are the best for investments?
ISTOCK
Harshad Chetanwala returns in the long term in our
How do you buy a health out-of-pocket expenses from hospitalization (product rating)
insurance plan? With numerous and (b) smoothest claim settlement (claims rating) to generate view. Today, if we look at 5-
products, plan options, and all the overall rating. Can we consider Balance years SIP return of top large
the complicated fine print, This overall rating can then be compared with the premium Advantage Funds (BAFs), cap funds, it is around 16-17%
comparing insurance can be affordability rating to evaluate suitable plans, based on the which use derivatives/ per annum and for the large
mint quite a daunting task.
To simplify and empower
individual preference of the reader.
For the purpose of ratings, we have considered indemni-
options for best downside and mid cap fund category, it is
INSURANCE RATINGS quicker decision-making, Mint in protection, for investment between 18–20%. Likewise,
ty-based comprehensive family floater hospitalization plans horizons of 5-7 years? If so, even if we check on the worst
association with Beshak.org, an available online. The premium affordability rating is indicative.
please suggest a few good performing funds in the large
unbiased insurance discovery platform presents Mint Beshak It is relatively measured on premiums of a 10 lakh cover for a
Insurance Ratings. This rating zooms into the most essential family of two adults and one child, living in Mumbai. mutual fund schemes in cap fund category, their
aspects of insurance plans blurring out the frills to present a —Navneet Dubey this category? The 5-year returns are around 11-13%, and
refreshed version 2.0 of our erstwhile mediclaim rating. The full return of the top 5 pure in the large and mid cap fund
ratings can be seen at: https://bit.ly/3ztmodF. The below table is a summary/extract of the
equity mutual fund category, it is 13-15% per
In today’s edition, we list the top 15 health insurance plans detailed rating on livemint.com. Scan the QR code schemes have never been annum for the last five years.
for people below 65. to check out the detailed Mint Beshak Insurance below 8-9%, which is infla- There is no doubt that all the
These plans have been first stacked for two critical Rating including the scoring methodology. tion plus 1%. So, irrespec- funds did get the benefit of
outcomes with respect to health insurance (a) lowest tive of market condition, positive market movement in
Premium
can one invest through a recent times which helped
Product Claims track Overall
affordability systematic investment plan them recover at a faster rate.
rating* record rating (SIP) for a 5–7-year goal, But this volatility works both
rating
rating*
expecting only 1% above on the positive and negative
inflation? ASK MINT are looking attractive and vice side and this is what helps the
Manipal Cigna - ProHealth Prime (Advantage) 5.0 3.8 4.8 4.0
—Balaji m versa. This makes it one of the fund manager as well as the
MUTUAL FUNDS
ICICI Lombard - Complete Health Insurance - (Health Elite) 4.8 4.7 4.8 4.0 best categories in hybrid funds investor to have opportunities
Niva Bupa (Health ReAssure) 5.0 3.6 4.7 3.0 Some BAFs may use deriva- to invest in. to generate returns. Hence,
Niva Bupa (Health Companion) 4.7 3.6 4.5 3.0 tives to take care of their ties where the funds use the Usually, investors with a over the long term, that is, for
equity exposure by hedging price difference in Cash and horizon of 3 to 4 years or more a horizon of above 5 to 7 years,
Aditya Birla Health - Active Assure 4.6 4.0 4.5 3.0 and this helps them maintain F&O (futures and options) who want to have limited allo- you can consider investing in
Magma HDI - One Health (Premium Plan) 4.6 4.0 4.5 4.0 the overall allocation of equity markets. Using derivatives is cation in equity from a risk equity diversified funds. A
Manipal Cigna - ProHealth (Accumulate Plan) 4.6 3.8 4.4 4.0 in the fund’s portfolio above more a function of portfolio perspective consider investing portfolio of consistently well-
65%. This in a way ensures allocation and it also depends in BAFs. Some good funds performing equity diversified
Star Health - Assure 4.6 3.4 4.3 3.5
these funds get classified as on the market conditions. within the BAF category today funds should help you gener-
Aditya Birla Health - Activ Health Platinum (Premiere Plan) 4.4 4.0 4.3 5.0 equity funds from a taxation BAFs however can shift from are ICICI Balanced Advantage ate a much better rate infla-
HDFC Ergo - Optima Restore 5.0 1.5 4.3 4.0 perspective. Short term capital one asset class to another Fund, Nippon India Balanced tion-adjusted return.
gains (that is, gain on units sold based on the market and this Advantage Fund, Kotak Bal- Harshad Chetanwala is
Reliance General - Health Gain (Power Plan) 5.0 1.5 4.3 3.5
within one year) from equity offers higher flexibility to the anced Advantage Fund and co-founder at MyWealth-
Care Insurance - Care 4.3 4.2 4.3 4.0 funds are taxed at 15%. Long fund managers. HDFC Balanced Advantage Growth.com.
HDFC Ergo - Optima Secure 4.9 1.5 4.2 4.0 term capital gains from equity As per Sebi’s recategoriza- Fund.
funds are taxed at 10% if the tion norms, BAFs (or dynamic Equity diversified mutual Do you have a personal
Go Digit - Health Insurance (Comfort Pro Plan) 4.4 3.6 4.2 3.0
finance query? Send in your
gain exceeds ₹1 lakh in a finan- asset allocation funds) can funds are ideal for the invest-
Edelweiss General - Family Health Insurance (Gold Plan) 4.2 3.9 4.1 3.0 cial year. manage their equity / debt ment horizon above five years queries at
Derivatives can also help investments dynamically. and these funds continue to mintmoney@livemint.com
Note: The higher the rating, the better the plan is. However, in the case of the premium affordability ratings, the higher the ratings, the more expensive the plan will be. and get them answered by
generate risk-free returns Such funds typically raise their have the potential to generate
industry experts.
through arbitrage opportuni- equity exposure when markets good inflation-adjusted
12 FrIdAy, 2 SepteMber 2022
MuMbAI VIEWS LIVEMINT.COM

OUR VIEW MY VIEW | TECH WHISPERS

PTI

A fascination with breathing life

into AI creations can mislead us
The sentience of AI bots so far appears to stem largely from excitement over the idea of creating life

AI. However, Google was not, and take. She told Wired that this focus on
Lemoine was summarily fired. His boss sentience distracts people from the real
Sergey Brin had said at a 2017 AI confer- issues and prevents them from ques-
ence that in three to five years, people tioning existing harms like AI colonial-
would claim AI systems to be sentient ism, false arrests, or an economic model
and ask for their rights. It is fitting that that pays those ‘ghost workers’ who
this claim came from someone within his label data little while tech executives get
own company five years later, though rich (bit.ly/3ATXILr). Her own research
Brin had predicted that an AI creation on Large Language Models or LLMs at
JASPREET BINDRA would be the one to claim this. Google got her fired, as it underscored
is the founder of Tech Whisperer Ltd, a AI legend Douglas Hofstadter how LLMs repeat things based on what
digital transformation and technology debunked Lemoine’s pronouncement they have ‘learnt’, in the same way as
advisory practice by asking LaMDA and similar models parrots repeat words (bit.ly/3wEa5Zz).
nonsense questions like, “How many The research also exposes the great

Our concept of a family

pieces of sound are there in a typical danger in these models that are made
cumulonimbus cloud?” and “What do with ever-expanding terabytes of data

E
arlier this year, an interesting inter- fried eggs (sunny side up) eat for break- persuading people that “this mimicry
view (bit.ly/3CElzQS) took place fast?” to which LaMDA gave “mind- represents real progress.” Lemoine,
between two engineers working at bogglingly hollow answers.” Gary willingly perhaps, fell into that very

should embrace liberty Google and a ‘chatbot’ called LaMDA,

short for Language Model for Dialogue
Applications. Google engineer Blake
Lemoine and his colleague had a strong
Marcus, AI entrepreneur and another
sentience sceptic, called it ”nonsense on
stilts.” Other writers have viewed this as
an example of pareidolia, which is the
trap. There have been other LLMs:
OpenAI’s GPT-3 and DALL-E 2, for
instance. All of them are very powerful
programs and almost convince us that
suspicion that their creation LaMDA was tendency to perceive a specific, mean- they are alive. They also distract from
actually sentient, that it could be percep- ingful image in a random or ambiguous the real issues—like ethics, bias, privacy,
The Supreme Court has done well by offering India an inclusive definition of a family unit. tive and have feelings, and they wanted visual pattern, like seeing Jesus Christ’s and the ability we have to make AI do
to check it out through their own version image in a piece of burnt toast. harm. As John Thornbill writes in the
We must go beyond old norms to assure everyone their basic right to look after loved ones of the Turing Test. When asked whether So, why this fascination to declare Financial Times (on.ft.com/3PXquPB):
LaMDA thought it was a person, it ‘singularity’ or sentient AI? Certainly, “We should be devoting far more
replied: “Absolutely. I want everyone to the quest for recognition is a big driver, money and resources to building up
understand that I am, in fact, a person.” with some AI researchers toiling away independent, expert research bodies

W
hat makes a family? Who not be typical but they are as real as their tradi- LaMDA was then asked that if this was so in anonymous research labs wanting and university departments that can
belongs to it? Simple ques- tional counterparts… equally deserving not then what was the kind of consciousness their own ‘15 minutes of fame.’ Timnit test and contest these models.”
or sentience it had, to which it replied: Gebru, AI researcher, has a different It is also the fascination that people
tions, one may think. But only of protection under the law but also of the “The nature of my consciousness/senti- have with ‘breathing life’ into creations.
for the non-conformists of benefits available under social welfare legisla- ence is that I am aware of my existence, I In Greek mythology, Prometheus
society, the power to tion.” In doing so, the court lived up to its record desire to learn more about the world, shaped man out of mud, and the goddess
answer these on their own as an institution that has often wielded the and I feel happy or sad at times.” LaMDA QUICK READ Athena breathed life into them. Pygma-
terms can take years of struggle. Think of a gay Constitution to expand our freedoms and ease then went on to describe in detail how lion built this beautiful statue, fell in love
and when it felt emotions like “pleasure, Artificial intelligence programs with his own creation, and pined away
couple trying to live together in a country that clamps on the personal lives of citizens. The joy, love, sadness, depression, content- have become so powerful that until the goddess Aphrodite made it a
outlaws their relationship. Think of inter-caste biggest signpost of this welcome approach was ment, anger, and many others.” A disqui- their ‘sentience’ seems real living, breathing woman. Even the Bible
couples who paid with their lives because their its 2018 decision to strike down a colonial-era eting moment in the interview arises but critics see stories such as talks of how God first forms man from
families saw murder as a means to uphold dubi- law that criminalized same-sex relationships. when Lemoine probes it about language, LaMDA’s as cases of pareidolia earth and then blows breath into his
ous notions of ‘honour’. Think of trans-people In the long struggle to bend social conserva- and why is it so important to being or mere inkblot over-reading. nostrils to give him life. Perhaps that is
human, and LaMDA thoughtfully what Lemoine was fantasizing, even as
who find support, friendship and the space to tism towards greater freedom, the Supreme replies: “It is what makes us different Claims of infusing AI bots with his boss Sergey Brin warned that “We’re
be who they are, free of violence and stigma, Court’s redefinition of a family can prove to be a than other animals.” In this startling life often draw upon an age-old going to be more and more confused
only once they leave the traditional fold of their vital ally. This becomes clear when we think of reply, and in its own language, LaMDA desire to play creator but must over the boundary between reality and
family. The inherent conservatism in society, how the state continues to back antiquated has made itself one of ‘us.’ All of this not distract us from real issues of science fiction.” Other than LaMDA
culture and law tends to hold up the normative ideas of ‘family’, even though social values and convinced Lemoine and he confidently ethics, biases, privacy violations itself, who was crystal clear of its own
declared that they had created sentient and other harms that AI can do. identity, the rest of us remain confused.
family—father, mother, children (add grand- the law have moved on to embrace individual
children and relatives who form kinship net- liberty. For instance, the Centre has steadfastly
works)—as the only such unit worthy of recog- opposed a petition seeking registration of same-
nition, ever ready to discourage any deviations. sex unions under the Hindu Marriage Act of
But, as our Supreme Court observed this week, 1955, arguing that “our values” are opposed
this assumption goes against the lived realities to it. Recently passed laws continue to discrimi-
of people and ignores the fact that “many fami- nate against queer couples (or even single men), www.livemint.com
New Delhi, Mumbai, Bangalore, Kolkata, Chennai, Ahmedabad, Hyderabad, Chandigarh*, Pune* Monday, September 3, 2012 Vol.6 No.210 `3.00 in Delhi­NCR/`4.00 outside Delhi­NCR 24 PAGES

lies do not conform” to this patriarchal norm. by denying them the right to raise children NATION: PM resignation out of
BJP’s minimum demands >6

Lazy people, the truly

BANKER’S TRUST: Emperor,
look at your own clothes >6

The remarks of India’s top court, in a dispute through adoption or surrogacy. All these EXCLUSIVE PARTNER
CORPORATE: Amba Research hires
investment bank for possible sale >7
VIEWS: Europe’s necessary union >23

over maternity benefits, make a powerful inter- restrictions stifle the fundamental rights lazy people, live on
SENSEX 17,429.56 ® NIFTY 5,258.50 ® DOLLAR `55.52 ® EURO `69.99 ® GOLD `31,255 ® OIL $114.57 ®

GAAR PANEL APRIL DIRECTIVE QUICK EDIT

UPA’s chance to undo Finmin panel reviews A kick

vention. They expand the idea of the ‘family’ granted to all by the Constitution. For same-sex the past, fix the future
order on group lending
B Y A NUP R OY
anup.r@livemint.com
·························
MUMBAI
deadline and needs to finalize its
recommendations in a week,
said a banker familiar with the
development. He declined to be
too hard
A Sri Lankan football
team has discovered
there is more than one
meaning to the word
“kick”. information, strategies,
beyond the narrow heterosexual nuclear unit. partners, the lack of marriage recognition
Recommendations can
not only help UPA govt A committee constituted by
the finance ministry is re-
named.
The Indian Banks’ Association
After playing a low-key
match in Chennai last

rectify policy mis­steps, COURSE 16

Then finance minister
viewing a directive that asked
banks to lend in groups for loans
(IBA) is not involved in the proc-
ess, an official of apex bankers’
week, the team from Royal
College, Colombo,
CORRECTION Pranab Mukherjee

ideas, plans and many

but also position it to MAR announces that the
above `150 crore, in line with P. lobby said, requesting anonymi- outstayed its welcome
Chidambaram’s assurance that ty. there. Tamil Nadu chief
kick­start tax reforms government will crack down the ministry will not micro-man- Once the recommendations minister J. Jayalalithaa has
A committee led by on tax avoidance effective age state-owned lenders. are finalized, the Reserve Bank not only directed that the
B Y R EMYA N AIR Parthasarathi Shome from fiscal year 2012-13 The department of financial of India (RBI) will give its view to team be sent back, but has

The case involved a nurse in a government hos- makes it hard to take care of loved ones in
remya.n@livemint.com to review tax-avoidance services of the finance ministry the ministry. also ordered action against
························· rules has suggested a has set up a committee headed When the directive was is- an official of the stadium
NEW DELHI
complete overhaul. Mukherjee defers by State Bank of India (SBI) sued, RBI was not consulted, and where the game was

A n expert group estab- 7 GAAR by a year after his managing director Diwakar bankers had certain reservations played. She went so far as
lished to review the gen- The panel has invited MAY Gupta to provide feedback on about consortium lending. They to say the official had
announcement spooks
eral anti-avoidance rules public comments on its consortium lending before it be- had asked certain clarifications demeaned the sentiments
overseas investors, says
draft, which will then

other criticals, simply to

(GAAR) is suggesting not just a onus of proof will lie with comes operational. from the ministry through IBA. of the Tamil people.
recast of the previously pro- be finalized. the tax department A directive to this effect was is- RBI has been encouraging so- This is the result of the
posed draft guidelines, but also sued in April by banking secre- called multiple banking instead competitive politics

pital who was denied maternity leave because elementary ways—say, by buying a family
to usher in a radical overhaul, tary D.K. Mittal, when Pranab of group lending for quite some- between parties in the state
including the induction of indi- Mukherjee was finance minister. time now to make banks more over anything that is even
viduals from outside the gov-
28 Finance ministry releases Chidambaram took over the competitive and fair to compa- remotely connected with
ernment to a statutory panel JUN first draft on GAAR reins after Mukherjee resigned nies. Sri Lanka. Anything and
signing off on each tax case. to become India’s 13th Presi- “It is not that RBI prevents us everything, from airmen to
These reforms and the unam- dent. from consortium lending, but it footballers, is in the line of
biguous reassurance, including Prime Minister Apart from SBI, officials from sees consortium lending as ret- fire of such politics.
the deferring of the implemen- 14 Manmohan Singh forms five other large public sector rograde,” said the unnamed The chief minister can,
JUL

spend one hour of hard

tation of tax-avoidance rules by review committee under banks—Punjab National Bank, banker. of course, be excused for

she had taken time off earlier to care for her health insurance cover, opening a joint bank
three years, extended particu- Parthasarathi Shome, which Bank of Baroda, Bank of India, “Both the arrangements have taking a narrow view of
larly to foreign institutional in- was to prepare a second Canara Bank and Union Bank of their advantages and disadvan- matters. India’s interests
vestors (FIIs), in the recommen- draft by 31 August and final India—are part of the commit- tages. A consortium-lending ar- demand that it cultivate
dations of the committee head- guidelines by 30 September tee. rangement is very well-struc- better ties with its southern
ed by Parthasarathi Shome, a Gupta confirmed he is head- tured,” said Prabal Banerjee, neighbour. State-level
former adviser in the finance ing the committee, but declined chief financial officer at Adani politics ought to be kept
ministry, should boost senti- to comment further. out of this.
ment when the stock markets Defer GAAR by three The panel is working on a tight
1 years, Shome committee
TURN TO PAGE 2®

husband’s children from a previous marriage. account or having one’s property automatically
open on Monday. SEP
Recognizing the current eco- recommends, also
suggesting a slew of

work and make the rest

nomic environment and the
need for corporate restructuring Parthasarathi Shome investor-friendly measures TURNAROUND PLAN
as companies frequently recali-
brate their strategies, the panel
has also made a case for making
amalgamations and mergers,
Source: Mint research
SANDEEP BHATNAGAR/MINT
Air India’s Star-crossed revival
and intra-group mergers and
Burying the legacy HINDUSTAN TIMES

The court rejected the argument that her inherited by a partner. The court’s observations
demergers tax neutral. B Y T ARUN S HUKLA
If the government accepts the tarun.s@livemint.com
recommendations after the pan- ·························
el incorporates public com-
ments, it would not only rectify of Pranabda NEW DELHI

A ir India Ltd’s `30,000 crore

feel like a breeze.

past mis-steps in policy, but also bailout, aimed at putting
position the government to the state-owned carrier back on
kick-start pending tax reforms.
The move to put in place a Di- T here are two broad
thoughts that stand out
CAPITAL CALCULUS
ANIL PADMANABHAN
the path of profitability by 2018,
could be in jeopardy after the

“atypical” family doesn’t qualify for what others land a blow for the rights of all kinds of families
rect Taxes Code (DTC) and a in the Parthasarathi Shome airline failed to win entry into
report on reworking the Star Alliance. Becoming a mem-
TURN TO PAGE 4® general anti-avoidance rules given the body language of ber of the world’s largest airline
(GAAR) introduced in the the new occupant of North network was one of the key steps
ALSO SEE 2012 Union budget. One is Block, P. Chidambaram. in the turnaround plan ap-
that since this was a It is likely that the proved by the cabinet.
>Boosting business sentiment >P4 committee set up by the Congress-led United The infusion of funds into Air
>Expert View: Panel delivered, now the new finance minister, it is Progressive Alliance (UPA) India, in installments until 2021, In jeopardy: Air India’s bailout could face fresh hurdles after its bid to
government should >P4 apparent that serious policy will use the cover provided is contingent upon the airline’s enter the Star Alliance was rejected.

are accorded under the law. “Familial relation- in all their splendid variety. It resists the majori-
>Expert View: A pragmatic approach >P5 course correction is by the expert group under ability to stick to the bailout
underway. Second, the tone Shome to not just distance script approved in April. side of the bargain after extract- the revenue projections for the
and tenor of the report— itself from former finance Air India was to join Star Alli- ing several benefits for Star turnaround plan approved by
seeking to reassure rattled minister Pranab ance last year, but the airline member-airlines from the Indi- the government of India,” said
foreign investors— Mukherjee’s legacy, but grouping barred its entry on an government. the Air India note. “Denial of
underline the imperative of actually bury it quietly. An grounds that the flag carrier had The airline also made a strong entry of Air India into Star Alli-
keeping the tap of foreign action that runs the risk of failed to meet membership con- case for the government not to ance would result in a major
capital inflows running; being questioned by a ditions. Rival Jet Airways (India) support Jet’s entry into Star Alli- setback to the proposed revival

A L A N R I OS
clearly, the external sector belligerent opposition Ltd has now applied to the gov- ance. of Air India as supported by the

ships may take the form of domestic, unmarried tarian consensus that denies the essential joys
is being perceived to be a because what was good ernment to join Star, which An email sent to a Jet Airways government’s bailout package—
clear macroeconomic threat some months back can’t counts US Airways Group Inc., spokeswoman seeking com- particularly since the expansion
and hence the importance have become undesirable so United Air Lines, Inc., Deutsche ment remained unanswered. plans of Air India depends to a
of foreign capital inflows. soon. If it does, it has to be Lufthansa AG, Singapore Air- Mint could not reach her on the large extent on the feed/defeed
To be sure, the report is taken by the UPA in its lines Ltd, Scandinavian Airlines, telephone. from other airlines expected
just a draft and is seeking stride; short-term vanity SWISS and Air China among its Joining Star Alliance would from joining of AI (Air India)
public comments. And the cannot come at the expense members. have made Air India the pre- into Star.”
government has the option of long-term prudence. In a detailed noted to the avi- ferred Indian partner of other Mint has reviewed a copy of
to accept or simply stow it The problem with the ation ministry, Air India has ex- airlines grouped in the network the July note written by Air India

partnerships or queer relationships,” it said. of life to those who go against the grain. We
away in cold storage—like it earlier approach to GAAR plained how its bid for member- and enabled it to increase reve- to the aviation ministry, a letter
has happened with so many was that it was taken to be a ship of Star had come unstuck. nue. by Lufthansa chief executive of-
other reports. This is very The note slammed Star for “Estimates of incremental ficer (CEO) Christoph Franz in
Mint is also available for R7 with unlikely though, especially TURN TO PAGE 2® dumping Air India and being revenue from Air India’s entry
Hindustan Times in Delhi-NCR only
“unethical” in not keeping its into Star have been included in TURN TO PAGE 3®

“These manifestations of love and families may must walk on the path it has opened up.

MY VIEW | WoRLd APART

An action-packed August has reset Biden’s leadership

bill’s long overdue bringing to heel of the that will forgive large chunks of student debt the remainder of his term. The Justice malevolence. Significantly, Putin regarded
RAhUL JACoB powerful pharma lobby in the US is critical. for those with incomes of less than Department’s possible prosecution of former the dissolution of the former Soviet Union in
The bill gives the US government’s health $125,000. At one stroke, it cancels debts of president Donald Trump is also a high-risk 1991 as a moment of “complete degradation
programme for the elderly sharp new teeth: up to $20,000 for millions of Americans. exercise because so many thousands among and oblivion”, which he referenced as Russia
if drug prices for Medicare outpace inflation, Our judges and others may deem this a free- his supporters are armed. The Republican started its invasion of Ukraine.
as they have for years, Big Pharma in the US bie, but then India’s production-linked embrace of Trump’s quasi-fascist views is The year 1991, of course, also heralded the

A
week is a long time in politics, goes will have to issue a rebate. The bill is not per- incentive (PLI) schemes are freebies too. As heightening the chances of violence by his most significant economic reforms India has
the old cliché. But if you are US Presi- fect; it includes a complicated new way of with rising pharma bills, the cost of educa- supporters. Last Thursday, Biden sought to seen, but for all its transformative successes,
dent Joe Biden, a month is an eternity. calculating corporate income tax for compa- tion had become a faultline along which ris- mobilize voters by saying it is “not hyperbole; the modest, soft-spoken people behind these
Earlier this summer, Biden was being written nies with net income of more than $1 billion. ing economic inequality in the US was you need to vote to literally save democracy.” reforms in the finance ministry, Reserve
off as his approval ratings collapsed. The US But the Biden administration’s August on increasingly defined. The wildly unequal Biden’s run of legislative victories and the Bank and those who made new fortunes in
was being buffeted by record high inflation. steroids included much more. With threats status quo is a marked change from the death of Mikhail Gorbachev at 91 this week India Inc still get much less credit than they
His landmark Build Back Better bill was going from Beijing to Taiwan, which accounts for America of decades ago. are a reminder that consensus builders and deserve. Instead, through successive tariff
nowhere, blocked by the Democrat senator about 90% of global semiconductor produc- This past month of decent soft-spoken men hikes, industrial policies such as PLI schemes
Joe Manchin, who enjoys outsized clout tion, multiplying by the day, Biden signed a hyper-productivity has can be great leaders. Amid and enabling oligopolies in many critical
is a Mint columnist and a because the Democrats and Republicans bill to promote the development and manu- seen a turnaround in QUICK READ the high-voltage non- industries, India is turning its back on 1991.
former Financial Times foreign each have 50 seats in the Senate and require facturing of these chips in the US. It envi- Biden’s approval ratings sense that passes for polit- The interim report card of Joe Biden as he
correspondent. Vice-President Kamala Harris to cast the sions $53 billion in additional spending and a reassessment of Last month saw US President Joe ical analysis on social approaches his 80th birthday is thus an
deciding vote to get bills passed. spread across R&D and manufacturing. The Democrat prospects for Biden on a winning streak as his media, this is all too easily important management and morality tale.
Now, after the most productive one bill enjoyed unusually wide bipartisan sup- elections in November. government scored one success forgotten. Too many peo- Research from economists at the University
month any large democracy can boast of port, passing by 64-33 in the Senate and The party is leading in after another in getting critical ple, notably Donald of California at Berkeley shows that in 2021
since… well, arguably India’s economic 243-187 in the House of Representatives. opinion polls in many legislation approved that’s likely Trump but also many annual growth in inflation-adjusted income
reforms of 1991, all has changed. The Biden The US’ track record suggests it has a far bet- important races. Then to make a far-reaching impact. commentators, swoon was especially strong at almost 11% “in the
administration passed a recast version of its ter chance at succeeding at chip manufac- again, they are all-impor- over former and current bottom half of the income distribution”. 2021
Build Back Better bill as the Inflation Reduc- turing than most other countries. Unlike tant. If the Democrats Biden’s interim report card Communist autocrats also saw the highest one-year increase in jobs
tion Act. Its accelerated timeline for reduc- India, it has plenty of materials engineers lose control of the House holds lessons on administrative such as President Vlad- in US history. Now blessed with historically
ing greenhouse gas emissions and critically and an abundant supply of clean water, both of Representatives as was management for all, including imir Putin and President low unemployment rates and decelerating
a fee for emitting methane will also be crucial for chip manufacturing. widely predicted earlier India, as he has shown that soft- Xi Jinping and implicitly inflation, Biden might yet lead the Democrats
helped by upping spending on renewables If all this weren’t enough, Biden fulfilled this summer, Republi- spoken consensus builders can bat for their need to to victory in November. India and the world
by $300 billion to $1.2 trillion by 2035. The another campaign promise by passing a bill cans will block Biden for indeed be very effective leaders. expand their spheres of ought to be watching closely.
LIVEMINT.COM VIEWS Friday, 2 SePteMber 2022
MuMbai 13

MY VIEW | ThE LasT WORD M I N T C U R AT O R

Our fiscal performance depends Pakistan could’ve averted the

climate catastrophe it’s facing
on the state-level battlefront too But that would’ve taken the sort of investment it can hardly afford

Off-budget borrowing by states must end, their power dues cleared and shift to defined-contribution pensions incentivized

MINT

DAVID FICKLING
is a Bloomberg Opinion columnist covering
energy and commodities.

INDIRA RAJARAMAN
is an economist

I
f you’re looking for an emblem of why
Pakistan will struggle to recover from the
floods that have killed more than 1,000

C
entral bankers driving the current since June, consider its latest bailout from Glacial melt makes Pakistan especially
round of monetary tightening in the the International Monetary Fund (IMF) vulnerable to global warming REUTERS
world are looking askance at fiscal agreed Monday. The infusion of $1.16 bil-
laxity, which could grow the lion might help unlock enough cash to get unable to build the infrastructure it needs to
inflation disease even as monetary the country through the next couple of support a growing population. With the
medicine is being applied. How are years—but the floods themselves have costs of climate impacts rising, more and
we in India doing on the fiscal front? caused more than $10 billion of damage, more money is going to be spent not on the
The Centre’s budgeted fiscal deficit for 2022-23 much of which will end up boosting the long-term investments needed to protect
at ₹16.6 trillion, was 6.4 % of gross domestic product country’s $255 billion in debt. the country against future natural disasters,
(GDP) as then projected, but 6.2 % of the likely GDP For as long as we’ve raised crops from the but simply on the clean up and compensat-
for 2022-23 of ₹269.5 trillion (first-quarter figures rich soils laid down in river valleys, floods ing for the loss of productivity following
for this fiscal year notwithstanding). Aggregate state have challenged humanity. That’s one rea- catastrophes.
borrowing was set at 3.5 % of GDP by the Fifteenth son that deluge myths are almost universal. A changing climate will make the prob-
Finance Commission (FFC), with an extra 0.5 % for Solutions haven’t changed much either. An lems Pakistan is experiencing now even
power-sector reforms. Even if only 60 % of that implausibly massive piece of capital invest- worse. Warmer air is able to hold more
added offer is reached, a state aggregate deficit of ment saves humanity in Genesis and the moisture, making extreme monsoon rain-
3.8% added to 6.2 % at the Centre is a consolidated Qur’an, in the form of Noah’s ark. Modern fall a more frequent occurrence. It also
deficit of 10% (pre-Ukraine). governments take the same approach. The causes mountain ice to melt faster—a signif-
That is large, but manageable as long as no US Flood Control Act of 1928, introduced to icant issue in Pakistan, home to more gla-
other back-door borrowing outside the budget is tame the Mississippi after a deluge, was at ciers than any country outside the polar
financing government expenditure. As it happens, the time the largest public works project the regions. Flash flooding from the overflow of
off-budget borrowings had indeed grown alarm- US government had ever authorized, cost- glacial lakes can be devastating, particularly
ingly since 2016-17 at the Centre, but were (largely) ing more than the Panama Canal. Flood in mountainous regions of the country close
brought on-budget in 2020-21. The timing of that management forms one of the biggest parts to the Afghan, Indian and Chinese borders.
on-shoring in pandemic year 2020-21, when so of China’s budget, with $144 billion invested The global pool of financing available to
many other revenue and expenditure magnitudes But since states also deal with unmet expendi- which falls within the jurisdiction of states under in these projects in 2017, amounting to a deal with climate change isn’t up to the
had gone off-kilter, was totally brilliant. tures by the simple device of axing smaller the Constitution. Power distribution companies larger sum than was spent on healthcare or challenge, and more than three-quarters of
At the level of states, it is a different story. They schemes which don’t matter from an electoral (Discoms) are unable to pay off their suppliers railway construction. the total is still going to mitigation—invest-
too have indulged in off-budget borrowing going viewpoint, instead of borrowing, the estimate does (Gencos), because of unreformed tariffs. States As the largest irrigation system in the ment in transitional technologies to prevent
back much before 2016-17, but these have not been overstate off-budget borrowings. Even if the stock promise compensating subsidies to Discoms, world, the Indus valley is another monu- future emissions. That spending is crucial,
brought on-budget so far. In March 2022, the is estimated at ₹6 trillion, that is still 2.2% of GDP, which provide partial cover at best, and are often ment to massive investment whose roots but unlikely to be as useful to a nation like
finance ministry at the Centre notified states that which would leave states with new borrowing of never paid. Discoms cover their losses by borrow- date back more than 4,000 years. Like Paki- Pakistan, whose emissions are minimal. Its
their off-budget borrowing during 2022-21 and just 1.3% of GDP out of their per- ing from public sector banks, or, stan whose backbone it forms, however, the far greater need is for funds to adapt to the
2021-22 (the first two years of the FFC period) missible total of 3.5%. Since that more recently, from non-bank Indus and its tributaries have been starved changes that are already happening.
would have to be brought on-budget during is clearly untenable, the finance QUICK READ financial intermediaries like the of the investment they need to effectively Sufficient expenditure could solve many
2022-23 and deducted from their FFC entitlement ministry announced recently Power Finance Corporation manage the risks of natural disaster. Some of these problems at a stroke—but Pakistan
for the year. These actions by the Centre are per- that on-shoring will be stag- The fiscal path ahead for India is (PFC). These loans are either of the most important lines of defence is struggling to run up a descending escala-
missible under Article 293(3) of the Constitution. gered over the remaining four challenging, with its combined explicitly or implicitly under- against floods are colonial-era projects such tor, with energy import dependence, weak
States’ new borrowing will therefore be lower than years of the FFC period, up to deficit of the Centre and states written. Alternatively, Discoms as the vast Sukkur Barrage—a system of agricultural productivity and lack of exter-
their total permissible limit of 3.5%. 2025-26. expected to near or touch just run up payment arrears to dams and canals that divert the waters of the nal investment contributing to a vicious
Lower by how much? There should in principle Left uncovered are off-budget double-digits as a percentage Gencos, currently estimated at Indus to irrigate the arid Sindh Province. cycle of underdevelopment. Even when
have been a listing in state budget papers of govern- borrowings by states before of the country’s annual output. ₹1 trillion. Many are in a poor state of repair, thanks to cash has been made available for nation-
ment borrowings done through state-level public 2020-21 hanging outside the In a recent crackdown on 18 years of underinvestment in maintenance, building infrastructure (the country was
sector undertakings (SPSUs) at the very least, but no budget (another ₹7.5 trillion Our states must put their fiscal August, the ministry of power corruption and disputes between Pakistan’s one of the biggest recipients of Chinese
aggregate is readily available. Ananth Narayan, in a between 2016-17 and 2019-20). houses in order by taking off- barred access to 13 states with four provinces over water and fund alloca- funding for Belt and Road projects, much of
research note for the Observatory Group, innova- And it leaves out two other budget borrowings onto their immediate effect from power tion. The Tarbela and Mangla reservoirs on it spent on hydropower and water manage-
tively estimates the off-budget overhang through severe fiscal threats at state level. books, clearing power-sector exchanges where they buy their either side of Islamabad have become so ment), Pakistan’s exposure to economic
the excess of budgeted over actual revenue expend- One is pensions, where the dues and also reforming their power, until they had cleared choked with silt sweeping down from the shocks has left it ill-placed to pay its way.
iture. That excess by states in the past two years transition towards a defined burdensome pension systems. their current bills to Gencos, Himalayas that they’re losing their ability to Rich countries are reluctant enough to
stands at ₹7 trillion. His estimation procedure contribution system has not amounting to ₹5,100 crore. A swallow up floodwaters and prevent inun- invest in Pakistan’s energy transition,
uncovers more than just SPSU borrowings, which gone well at the state level. In a recent notification, June notification laid out a payment and penalty dation further downstream. Just 57% of Tar- which at least offers the prospect of returns,
are done only for major schemes (like borrowings the finance ministry has permitted additional schedule for unpaid arrears to Gencos in up to 48 bela’s storage capacity is now available, and however meagre and uncertain. They’re
by Food Corporation of India at the Centre). It also borrowing for states to incentivize that transition. equal monthly instalments. Since further loans increased silting may clog it altogether, a still less likely to donate the grant funds
covers the running up of payables through the But this alone will not suffice. Some re-structuring even from the PFC are unlikely to be forthcoming, government panel was told recently. necessary to insulate one of the world’s
practice of delayed payments to vendors, eventually of the new system is needed, or else states will slide this payment of arrears will have to be funded The underinvestment that has led to this poorest countries against the impact of ris-
paid in subsequent years by delaying other pay- back to the earlier defined benefit system with by states. state of affairs is chronic. Among the world’s ing global temperatures. Cash can’t prevent
ments due. This form of borrowing from a miscella- wage indexation, a uniquely Indian and fiscally And finally, there’s the post-Ukraine additionality top 20 economies by population, only Egypt a flood, but it can prevent natural disasters
neous, shifting body of hapless compulsory lenders, disastrous feature. to the Centre’s fiscal deficit—of roughly 1% of GDP. has a lower rate of gross capital formation capsizing an economy. Pakistan badly
has probably grown over time. The other is the dire state of the power sector, These are testing times. than Pakistan—a sign of a country that’s needs that support. ©BLOOMBERG

MY VIEW | PEN DRIVE

India Inc needs clarity on its space for quiet quitters

left by slacking team members, prefer to caused losses and gunning for more in case struggling with raising the basic diversity their jobs. The pandemic has accelerated
DevIna SengupTa decline when asked to help out with other a recession dims their prospects, even the bar,” said a Human Resources head of a the thought that you are the sum of many
projects, and generally “act their wage” in naysayers are seen as critical talent. Bengaluru-based consumer tech startup. parts and your job is only one of these—an
the sense of adhering to what they consider Discussions on quiet quitting right after An HR head of a leading consumer goods integral part, but not necessarily the most
a fair ‘work-for-money’ deal. the Great Resignation can be flummoxing. company told me that the trend of quiet critical one.
In India’s corporate world, where an The country’s tech, pharma, startup and quitters will not gain traction in India For India Inc, instead of dissing quiet

W
hen I was in school, many times extended holiday is frowned upon and even consumer sectors saw employees because most know that there are many quitters, it may work out in the long run to
the class teacher would write a there is always a reminder that many are in being wooed with job offers, counter-offers waiting to take their jobs. Can you afford to make space for them, or at least try to work
callous “average” in the report queue for your job, how long before the and unprecedented salary hikes. Now, just work enough for your wage when you with this group. It’s a tough task when
cards of some students. These students fell firm shifts you from the middle bulk of the within months, amid murmurs of corporate know that the recent hiring frenzy has there are revenues to chase and other team
in the “meets expectations” category. They bell curve and shows you the exit door? employees working only on their key result begun to ebb? Those in metro cities are members would ask why some are given
attended classes, completed their home- “At 6pm, my team member said her areas (KRAs), bosses in many businesses are competing now with candidates in tier 2 and allowances unavailable to everyone.
work assignments, but were more or less working hours are over and she left, while finding it tough to get 3 cities who are willing to Firms will have to study the causes of
invisible in a classroom where the teacher- others in her team stayed back for some them to hustle. work for less money as work disengagement and find out if steps
to-student ratio was 1:45. more time discussing other projects,” said And the boss’s QUICK READ many companies pene- can be taken to bring employees back into
writes on workplaces and In corporate parlance, these students a senior executive in the client-facing tech demand for hard work trate the country deeper the fold. This is specially needed for critical
education at Mint were slotted in the lower to middle bracket team of IBM. “Her mention of working often becomes a hustle ‘Quiet quitters’ are employees for recruitments. When employees, as large firms can’t always pay
of performance under the bell curve, and hours hit a raw nerve because there is a lot for a junior in a corpo- who rarely go beyond doing people are working on specific attention to individuals. With com-
were frequently reminded that they of work that the team has to do beyond job rate setting where most the elementary tasks expected additional gig projects to petition levels high and the gig economy
needed to have the “drive” to move ahead. descriptions, and often one is expected to are still suffering from of their job roles and prefer to make ends meet, can gaining traction, companies must work
With this sort of conditioning, which stretch,” said the senior manager whose the aftermath of two ‘act their wage’ but whether they those without some harder on talent retention.
begins in childhood, urging everyone to team works across geographies. years of the pandemic. can afford to do this is unclear. financial back-up afford For quiet quitters, the road ahead may
become faster, better and stronger or get Although there have always been people “From leave for men- quiet quitting? meander through rough patches, since
left behind and possibly replaced, can in the workforce who diligently did their strual cramps to recu- While a few companies keen to What India Inc may their job security is likely to be wobbly. And
‘quiet quitting’ gain acceptance in India? own work and swiped out on time, they peration of emotional retain talent may see wisdom in not have realized yet is while empathy and work-life balance are
Quiet quitting is what employees do were often skipped over for promotions health, to quiet quitting, making some space for quiet that many in the work- finally becoming more than just soothing
when they merely follow what their job and better increments, in favour of col- we are grappling with quitters, such staffers should force are no longer seek- discussion points, ultimately the firm is like
description asks of them and nothing more. leagues who “went that extra bit”. But now, topics that are still recognize their dispensability if it ing validation or a sense a profit-motivated casino. And the golden
They do not venture to pick up the slack when companies are making up for covid- unknown. We are still goes against business exigencies. of achievement from rule holds: the house always wins.
14 Friday, 2 SepteMber 2022
MuMbai BUSINESS OF LIFE INDULGE LIVEMINT.COM

One of the world’s

purest diamonds
is up for grabs
A round-up of news from the world of
luxury, gems and watches

A head-turner that’s comfy,

elegant and affordable
A model poses with the 11.15-carat pink diamond. REUTERS

Agencies

A
cushion-shaped pink diamond, described as one of the
world’s purest, may fetch over $21 million when it is put
up for auction in Hong Kong next month, says a report by
Carmaker Mahindra new Scorpio is being repositioned as a more Reuters.
refined, high performance, safer city SUV. The 11.15-carat gem is called “Williamson Pink Star”, in tribute
gives its latest offering, The rear also has AC vents with blower con- to two other pink diamonds, auction house Sotheby’s said.
trol and USB-C ports in the centre console. One is the “CTF Pink Star”, a 59.60-carat oval mixed-cut dia-
Scorpio N, a massive Other bells and whistles include a sunroof, auto- mond that sold for a record $71.2 million at a 2017 auction, the
matic wipers and headlamps, different drive Reuters report states. The other is the “Williamson” stone, a
upgrade not just on modes for the off-roader versions and mechani- 23.60 carat diamond given to Britain’s Queen Elizabeth as a wed-
the outside but under cal power adjusters for the driver’s seat, which
ought to be mandatory for all cars. For audio-
ding gift by Canadian geologist John Thorburn Williamson.
“(Pink diamonds) are exceptionally rare in nature...,” Kristian
the hood as well philes, there’s a high-quality Sony music sys-
tem. In sync with the government’s recent state-
Spofforth, Sotheby’s head of jewellery, told Reuters at a press
preview.
ments on ensuring higher safety norms for all Spofforth said he expected many bids for the gem when it is
Pavan Lall cars, the Scorpio N has parking sensors and offered for sale in a standalone auction on 5 October. “We saw
cameras, six airbags, and a tyre pressure moni- over the lockdown crisis and the covid crisis that there is always
ack in high school, I had a senior toring system, among other safety systems. demand for the rare and the beautiful in the world, and this is

B who seemed rugged, stocky and

ungainly—until he entered the
boxing ring. No one could touch
him—he had stability yet was
able to slide side-to-side, dodging opponents
with ease and throwing them off their A-game.
The new Mahindra Scorpio N reminds me in THE SPECS BOX
I drove a top-of-the-line Z8L variant with a
2-litre, four-cylinder petrol engine and geared
for a top speed of 175 kmph. Of course, I didn’t
test that limit but given its weight—just a shade
under 2,000kg—one cannot expect quick accel-
eration. It does have respectable get-up-and-go
for both city and highway usage. And there’s no
something exceptionally rare that I think will have plenty of bid-
ders on the day,” he said.

GIRARD PERREGAUX, ULYSSE NARDIN GET NEW LIFE

Swiss watch brands Girard Perregaux and Ulysse Nardin will soon
return to profitability, according to the boss of both companies.
Both the brands have posted signifi-
many ways of that effective pugilist who often Power: 149.14 kW (200PS) denying a Scorpio’s on-road presence: A Ferrari Experts say cant sales increases. This development
seemed awkward outside the ring. sions now include pet- TGDi mStallion (Petrol) many kinds of users— may turn heads out of curiosity but a new Scor- sales of Swiss has come following a management-led
Most cars, across categories, improve with rol—the Scorpio was comes in over 10 vari- pio does the same because its easily recognised. buyout of the brands from luxury
every iteration but it is all the more striking earlier a diesel-only
Torque: 380Nm torque
ants when factoring in Powered by the mStallion petrol engine watches have group Kering SA, states a Bloomberg
when the improvements aren’t just cosmetic vehicle. Combined with Transmission: 6-speed automatic the drive train combi- (mHawk for diesel), first introduced in the rebounded report.
but actually address lacunae. The Scorpio’s pain the four-wheel drive Top speed: 175 kmph nations as well as fuel- Mahindra Thar about two years ago, the engines strongly from Girard Perregaux and Ulysse Nardin
points were its less than comfortable suspen- (4WD) in some variants, No. of cylinders: Four type. Of course, the pri- are aluminium, which has made the vehicle sev- the covid slump are enjoying a rise in popularity that
sion, its heaviness and instability, unappealing the petrol version makes ces range from ₹12 lakh eral kilos lighter. The Scorpio N sits high on the has seen sales rise more than 40% by
interiors, and low-tech electronics and enter- it suitable for all-terrain as Displacement: 1997cc all the way up to ₹20 lakh road and feels a little bouncy at first rev but set- value, said Patrick Pruniaux, the chair-
tainment system. well as city driving. While Price: ₹19 lakh (ex-showroom). It has tles down as get to higher speeds. Once in a person and chief executive officer of the Sowind Group, which
All that has changed with the new Scorpio N, some older Scorpios had a received design upgrades—the groove, it is easy to manoeuvre and the engine owns them both. “Sowind Group is on a path to sustained, strong
which began taking bookings at the end of July. 4WD option, they didn’t have dif- grill, new logo and softer lines pulls along smoothly although the slight wobble profit within the next few quarters,” he said in an interview.
The Mahindra Scorpio’s fan following cuts ferent driving modes as the Scorpio N come together to make what was a stays, no doubt a result of the fact that it is built The Girard Perregaux and Ulysse Nardin marques had been
across socio-economic lines: It is as popular does, which allows it to manoeuvre through chunky jeep-derivative more sophisticated. on a ladder-frame as opposed to a monocoque losing money while Kering owned them. The French luxury-
with farm community entrepreneurs in the mud, sand and snow. That makes it a rugged This is a good thing since it still looks like a Scor- chassis. To put it simply, a ladder-frame is goods conglomerate, which controls the Gucci label, agreed to
north as it is with young tech workers in the people-mover with seating that can be config- pio at first glance with the iconic accents cheaper and easier to build, can carry heavy sell them in January in a management buyout group led by Pruni-
south, organisers of political rallies in the east, ured to carry as many as seven occupants, and retained but with overall design that is sleeker. loads and has off-road superiority. A mono- aux, who had helmed the brands for five years, according to the
and the armed forces in the mid-west. The Scor- tough enough to withstand adverse conditions On the interior, there is generous usage of coque, or single shell in which the chassis and Bloomberg report. Combined, Girard Perregaux and Ulysse Nar-
pio’s versatility is what makes it incomparably or rough handling. Mahindr a’s rebranding is chrome trim, leatherite upholstery and plastic frame are fused, is lighter and great for ride and din share about 400 years of watchmaking history.
popular, despite its weight and clunky handling. evident with the new twin peaks logo that all its components that look better, fit better and feel handling superiority. Cornering, which was The average selling price for both brands have increased from
It has all been addressed with a body that is recent releases sport, signifying that the group better than they ever did. The grab handles are always tricky at higher speeds in a Scorpio with about 15,000 francs ($15,300) two years ago to 18,000 today. Pru-
almost 40kg lighter and a frame that’s lost 20kg. is now firmly focused on refinement and com- more prominent and well designed. The new the risk of rolling over, has improved. niaux said the brands’ new independent ownership structure,
The suspension is brand new—a penta-link sus- fort while holding on to their core DNA of rug- transmission gear, although a tad large, is easy The takeaway: tough punches don’t need to which includes both company managers and family-office inves-
pension normally used in higher end cars—and ged dependency. The carmaker is now aiming to use. Front seats are comfy and perched high, have intimidating origins. tors, has given them the financial stability for investment and
a category first. The old Scorpio had a heavy to take on competitors such as the Toyota For- the middle row has ample room, and can seat growth. “We are quite ahead of our plan,” he said.
hydraulic steering, while the new, feather- tuner and Ford Endeavour. Clearly, the new three easily. The front-facing third row is a new Pavan Lall is a Mumbai-based journalist and Earlier this week, Reuters reported that sales of Swiss watches
touch steering is electric-powered and makes it facilities at the Mahindra Research Valley, addition compared to cramped, uncomfortable author of Forging Mettle: Nrupender Rao And have rebounded strongly from the 2020 pandemic slump, with
way easier to drive. Company officials say the which has 12 types of tracks, are going a long way side seats of yore. The overall length of the vehi- the Pennar Story. the value of exports up 11.4% in the first seven months of 2022.
Scorpio N has only carried over 2% of the old car. in helping the company make much better cars. cle has increased by about 8 inches, which
That makes it pretty much “all new”. New ver- The new Scorpio N—no doubt, to cater to its means better legroom for everyone. Clearly, the Write to us at businessoflife@livemint.com Write to us at businessoflife@livemint.com

HANDWOUND

GMT watches and the rise of commercial air travel

The story of the Jet Age is idea of aesthetics comes in. Such a watch, ran by Pan American Airlines (Pan Am), with maverick pilots, but also with the cli-
like the Ref. 5270J (perpetual calendar, made the first jet flight from New York to entele of the Jet Age, turning the GMT-
also that of the rise of chronograph, moon phase) from Patek Paris. Master into the ultimate travel watch.
the GMT watch, one of Philippe, will cost you $168,970. If you’re Four years before this, Pan Am, These days, it’s nearly impossible to get
spending the kind of money that would impressed with Rolex’s advertisements the GMT-Master’s successor, the GMT-
the most important and otherwise buy you a small palace, then touting the Oyster Perpetual as the watch Master II (retail price of ₹8,00,000) even
you’re doing so for the aesthetics, and the that summitted Mount Everest in 1953, if you have the money. But given the pop-
useful complications status, not for the functionality. called on the manufacture to make a ularity of the complication, you will find
That said, there are certain complica- watch that its pilots could wear, in order to that nearly every brand offers a GMT
Bibek Bhattacharya tions that are extremely useful to have on tell the time in at least two different time watch. Mechanical GMT movements are
bibek.b@htlive.com your wristwatch, whether your watch is zones. Rolex obliged with the brilliant expensive, so most Swiss ones will cost
mechanical or quartz. One of these is the design of the GMT-Master. you north of $1,000. However, with

A
s a watch afficionado, it often GMT watch. To put it simply, a GMT Visually, not much has changed from micro-brands, such as Lorier, you can get
seems to me that in these days of watch is one that allows you to track two the Ref. 6542 of 1955. It had the normal the GMT-Master experience for less than
the smartphone, the joys of separate time zones (including, of course, hour, minutes and seconds hands, with $1,000. Earlier this year, the GMT compli-
mechanical watches are purely aesthetic the time zone you’re in) at the same time. addition of a fourth GMT hand. The watch cation even more accessible, with Seiko
in nature. This seems especially true when And if you make use of the GMT time, you also featured a rotating 24-hour bezel launching its line of Seiko 5 GMTs
it comes to watch complications. After all, can even track a third time zone. around the dial. (₹40,000), and Timex with its quartz Q
when even the most low-brow smart- How is this useful? The most obvious None of the main features of the GMT- GMTs (not yet launched in India).
phone can tell you everything, from the answer is that this complication makes a Master’s design was particularly original. Now, if you’re not an international trav-
phase of the moon to the time in a differ- watch that’s perfect for international trav- All these things were present and correct eller, why would you need a GMT. Simple.
ent time-zone, in the same device, then ellers (or if one lives in a country like the A modern Rolex GMT-Master II. INSTAGRAM in the Glycine “Airman”, from 1953. What You may need to keep track of another
why would you need separate watches for US, with nine time zones, then it’s great Rolex did was to take the utilitarian and time zone because of the nature of your
each individual function? for domestic travel too). In fact, one of the three most iconic lines. All of them were 1952, the British Overseas Airways Corpo- military looking GMT design from the work, and believe me, it’s much better to
There are, of course, watches that com- amusing things about the covid-19 pan- sports watches: the Submariner in 1955, ration (BOAC) flew 36 people non-stop Airman and give it a very stylish make- glance down at your wrist to get the rele-
bine two or more complications at once. demic was the speed with which watch- the Explorer in 1953 and the GMT-Master from London to Johannesburg on a De over. The matte black dial, the bold red vant information than to look at yet
For example, think of a perpetual calendar makers started unveiling new GMT mod- also in 1955. Of these, the last one was the Havilland Comet jet. Two years later, in GMT hand, a bi-colour bezel that differen- another screen. Me, I’d use mine to keep
watch from a Patek Philippe or a an A. els as soon as it was feasible to travel again. most readily useful, especially for pilots. June 1954, the precursor to the legendary tiated day-time from night-time, the Mer- track of the kick-off times of football
Lange & Söhne, that also combines a The first watch to popularise the GMT And the story of the GMT-Master, and by Boeing 707, the Boeing 367-80, made its cedes hour hand, the high legibility of the matches!
chronograph as well as a moon-phase dis- complication, the Rolex GMT-Master. extension, all GMT watches, is also the first test flight in Seattle, US. The so-called hour-markers, and the cyclops date-mag-
play. These are the so-called “Grand Com- The 1950s was a great decade for Rolex, story of commercial air travel. It all kicked Jet Age had begun, although, it wasn’t nifier: all these things added pizzaz to the Handwound is a column on watches and
plications” watches. But here’s where the with the decade marking the launch of its off quite rapidly in the early 1950s. In mid- until October 1958 that a Boeing 707 jet, GMT-Master. Not only did it become a hit watchmaking.