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In an interesting political twist, AAP chief Arvind Kejriwal picked Atishi Marlena, a junior minister and someone considered close to Deputy CM Manish Sisodia as the new chief minister of Delhi, as he decided to step down and hand in his resignation to Lt Governor VK Saxena. Known as the main brain behind Delhi Government school reforms, Atishi played down her elevation as a stopgap arrangement. Making it clear that Delhi and its 2 crore people can only have one CM — that is Arvind Kejriwal. Atishi asked party cadres not to celebrate her elevation. There could be celebration only after Kejriwal gets re-elected in the March 2025 assembly elections. Initial announcement about Atishi was made by a party heavyweight and potential contender Gopal Rai. AAP also made it clear that there will be no deputy CM this time. By choosing to play the woman card and not opting for his wife Sunita as CM, Kejriwal may have tried to buy time with voters but will it blunt the edge on incumbency and non-delivery? Only time will tell. Yet with her rise as CM, Atishi will be the third woman CM of the UT after Sushma Swaraj and Sheila Dikshit. Born in June 1981 Atishi hails from an academic family in Delhi, with her parents, Vijay Singh and Tripta Wahi, both professors at Delhi University. She will be the youngest CM of Delhi at 43.When Kejriwal became CM in December 2013 he was 45. With an undergraduate degree in History from the prestigious St Stephen’s College in 2001, she completed her Master’s from Oxford University as a Rhodes scholar.
AAP’s former CM Arvind Kejriwal has a new political guru in Congress MP and advocate Abhishek Manu Singhvi, instrumental in his enlargement on bail. Initial plans to reward Singhvi with Rajya Sabha seat failed, even blowing up in Kejriwal’s face over l’affaire Swati Maliwal, with Congress accommodating their estranged leader from Telangana instead. Senior BJP leader Mahendra Jain says, the non-resignation drama first, by Arvind Kejriwal, continuing during incarceration over five months and then, precipitating as two-day resignation drama played over worries about Delhi LG, VK Saxena’s imminent intention to seek his resignation following Supreme Court’s diktat against Kejriwal attending CMO, other official duties. While incarcerated, Kejriwal pretended to carry on as CM from jail although no government papers were signed by him over issues of confidentiality and directives of SC. Even his note to the LG seeking approval for AAP’s CM incumbent Atishi (Marlena Singh) hoisting the tricolour on August 15 was rejected by Saxena instead authorizing AAP minister Kailash Gehlot.” The LG took issue over Kejriwal’s access to official CMO letterhead over the communique with SC also curbing jail visitors thereafter. Plans to reach consensus over two days for better half Sunita Kejriwal as incumbent CM were shelved as LG would cite her unelected status with less than five months to state assembly elections in Delhi. With Atishi helming AAP, BJP lost no time raking up her parents’ leftist leaning as ideologues demanding release of parliament attack terrorist Afzal Guru. The saffron party insists moniker ‘Marlena’ was a combination appended to Atishi Singh’s name by parents assimilating leftist philosophers: Karl Marx and Vladimir Lenin.
Political parties have their own whims and fancy notions about good luck charms of their parliamentary party offices. That’s why when it comes to the new Parliament complex, it seems — both the Congress and the BJP– are reportedly being reluctant to move their parliamentary party offices from the old Parliament House. Both the offices are on the ground floor and have plenty of history to it. Of course ministers and the LoP do have their offices in the new complex. The only party which has moved into the new building is the Telugu Desam Party (TDP) which stormed to power in Andhra Pradesh winning 164 of 175 assembly seats in an electoral alliance with Janasena Party and the BJP and has 16 seats in Lok Sabha. The Lok Sabha Secretariat allocated a new office, F09, to the TDP on the first floor of the new Parliament, a prime location that also houses the offices of the Prime Minister and Union Ministers. This change marks a transition from the party’s previous office, Room No 5, which was situated in the old Parliament building. Recalling how the YSRCP led by Jagan Mohan Reddy had occupied TDP’s office after party was routed in 2019 elections, a TDP source pointed out that in the 2019 LS polls, the YSRCP had swept the elections, winning 22 of the 25 Lok Sabha seats in the state and TDP was reduced to just 3 seats. Official sources said regional parties like DMK are also reluctant to move into the new Parliament complex.
A new star has joined the Indian insurance galaxy! Galaxy Health Insurance Co Ltd is the new addition. The birth of Galaxy signals the re-entry of yet one more family of the erstwhile TVS group into the insurance space. Significantly enough, this happens a few years after the formal legal separation of four families of the erstwhile TVS group. Galaxy Health Insurance is promoted by Venu Srinivasan and his family. V Jagannathan, former CMD of United India Insurance Company and the founder of Star Health & Allied Insurance, is the co-promoter. Industry stalwart G Srinivasan, former head of United India Insurance, is the MD & CEO. The Galaxy board comprises Dr Sai Satish, a renowned cardiologist, and Sudarshan Venu, MD of TVS Motor Company. Galaxy Insurance is all set to commence its operations shortly. Insurance business is nothing new to the Chennai-based TVS Group. It was the owner of Madras Motor and General Insurance before the industry’s nationalization. After nationalization, Madras Motor merged into United India Insurance. Subsequently, in the post-liberalization era, Sundaram Finance, initially promoted by Madras Motor, launched Royal Sundaram Insurance, a general insurance company. Ironically enough, two former heads of United India Insurance will be guiding Galaxy Health Insurance to make a mark in the space. The size of the Indian health insurance sector was estimated at Rs 1.17 lakh crore in FY 2024, and is currently growing at a CAGR of 20%. Post the legal separation, assorted organisations who once formed part of the erstwhile TVS group are now freely exploring the freedom of opportunity, it appears.
Top BJP minister Nitin Gadkari’s sensational disclosure that he had been offered support for Prime Ministership by a prominent opposition leader before the Lok Sabha election is considered significant owing to its crucial timing. Gadkari generally avoids commenting on political developments and does not entertain any media questions in this regard. Hence, his candid revelation has surprised the BJP brass, which has refrained from reacting to it. The opposition, by and large, also has kept away from the potential bombshell. Gadkari has refused to name the opposition leader who made this offer to him. But the political grapevine is on overdrive to identify the opposition emissary. Various algorithms are applied to find out who it could be. Is he from Maharashtra? From Nagpur or Vidarbha? A former BJP member? Close to Rahul Gandhi or Mallikarjun Kharge? Or someone having tacit approach to the RSS decision makers? Of course, all these are supposition without any factual backing. Still, the suspense is mounting in view of the coming assembly elections. It is deepened since Gadkari has declared on multiple occasions that he is not interested in the topmost job and is happy with his ministry. In the past, his name was being discussed to become the Maharashtra CM but he had firmly rejected the idea. His only connection now with the state elections is that he is one of the star BJP campaigners.
The ongoing RG Kar Medical College protests have cast a shadow over the Bengali film industry, with many in the fraternity struggling to return to work amid constant backlash and online trolling. While several actors, directors, and singers actively participated in the protests, some have gone back to work sparking mixed reactions from the public. The situation intensified after West Bengal chief minister Mamata Banerjee’s call to “return to festivities”. This statement was widely criticized. Amidst this political tension, prominent figures in the Bengali entertainment industry have found themselves facing undue criticism from netizens. Celebrities like singer Iman Chakraborty, actors Swastika Mukherjee, and Sohini Sarkar, all of whom supported the protests, became targets of online trolling. Swastika faced particular backlash after promoting her upcoming film Tekka, despite her regular attendance at protest rallies. Dev, who stars in Tekka and is also a Trinamool Congress MP, defended his stance, supporting the movement while stressing that livelihoods, especially during Durga Puja, should not be affected. He pointed out that marginalized groups, such as dhakis, decorators, and vendors, depend on the festive season. Singer Shilajit, another victim of online criticism, echoed similar sentiments. He defended the importance of continuing work, noting that events contribute significantly to artists’ earnings. Director Raj Chakraborty expressed concern over how easily celebrities become targets for trolls, leading many to avoid social media. Amid this growing tension, promotions for upcoming Puja releases, such as Bohurupi and Shastri, have been toned down to avoid further controversy. The Bengali film industry continues to navigate these challenging times with caution.
The mantle of head coach of the Indian cricket team has passed on smoothly from Rahul Dravid to Gautam Gambhir. The once famous ‘Wall’ of Indian cricket has returned to IPL’s Jaipur franchise, Rajasthan Royals, but the immediate focus will be on the doughty left hander from Delhi who showed guts and gumption for India across the three formats, scored 10324 runs in 242 matches embellished with two World Cup titles — the Twenty20 In 2007 and the 50 over format in 2011. Gambhir’s international career spanned from 2003 to 2016 after which he spent time as a BJP member of the Lok Sabha from 2019 to 2024 before he joined Shah Rukh Khan’s Kolkata Knight Riders. His success there has catapulted him to the national team that won the Twenty20 World Cup in the West Indies in July. Gambhir’s first major work will be to facilitate India qualify for the final of the World Test Championship. India under Virat Kohli and Ravi Shastri and Rohit Sharma and Dravid finished second best against New Zealand and Australia in the two previous cycles of the WTC, the finals being played in Rose Bowl and The Oval. India has to win at least five of the remaining 10 Test matches to be in the running for a third consecutive WTC final appearance, and this time the final will be played at the famous Lord’s Cricket Ground in London from June 11 next. Gambhir will have five home Tests — two against Bangladesh, starting this Thursday and three against New Zealand — before the historic five-Test series in Australia from November 22. Guiding India to the WTC summit before the ICC Champions Trophy in February- March 2025 in Pakistan will give a perspective about Gambhir’s coaching and mentoring philosophy.
A free burqa distribution programme organised by a Eknath Shinde camp legislator highlighted the uneasiness between the ruling alliance partners particularly over the Muslim vote bank. While the BJP did express its displeasure about such acts as “appeasement politics”, they clearly had to leave it at that. The Eknath Shinde-led Shiv Sena neither publicly disowned nor criticised the drive, thus recognising the need to woo core voters. The MLA concerned, Yamini Jadhav recently lost from the prominent Mumbai South Parliamentary constituency by over 50,000 votes mainly due to the fact that the Muslim voters there chose to throw their weight behind Uddhav’s nominee, Arvind Sawant. The fact that 50% of voters in her Mazgaon constituency are Muslims, could not have been lost on her as she faces her electorate yet again to reclaim her MLA seat. All this, while the prominent alliance partner, the BJP continues to adopt an aggressive pro-Hindu pitch with Nitesh Rane’s diatribe against Muslims being the order of the day. The BJP has also been critical of Uddhav’s recent success in garnering the support of the Muslim vote bank terming it as a result of not being sincere to core Hindu ideology. The third partner, Ajit Pawar, has already clarified that he would continue to be secular, in spite of his alliance with the BJP. Pawar has gone ahead and almost-declared the candidatures in key Muslim-dominated seats like Bandra East (Zeeshan Siddiqi) and Anushakti Nagar (Nawab Malik’s daughter Sana Malik) ignoring the BJP.
Tamil Nadu chief minister MK Stalin said he would be seeking an appointment with Prime Minister Narendra Modi and personally request him to release funds meant for the second phase of the Chennai Metro Rail Ltd (CMRL) project as well as the funds due to the State under the Samagra Shiksha Abhiyan (SSA) relating to school education. Both funds have been blocked by the Centre. His finance minister Thangam Thennarasu has already issued a statement hitting out at the Union finance minister Nirmala Sitharaman for saying that the ongoing CMRL second phase for Chennai was a State sector project. He had pointed out that the project envisaged in 2017 was a central sector project in which the Union government’s share had worked out to Rs 7,425 crore. He also refuted a statement by Ms Sitharaman that the state had spent only Rs 5,880 crore on the 119-km phase II whereas the state had already expended more than Rs 18,000 crore so far. The step motherly treatment being meted out to Tamil Nadu, considered the last bastion against the ruling BJP is borne out by the fact that funds allocated for Metro Rail schemes in cities like Bengaluru (Rs 30,399 crore), Kochi (Rs 1,957 crore), Nagpur (Rs 6,708 crore), Pune (Rs 910 crore) and Thane (Rs 12,200 crore), are all from the Centre’s kitty while not even what was promised for Chennai Metro expansion has been delivered.
Even as film fans across the country are wildly speculating about divorce in the Bachchan’s family comes the news from Kollywood that Jayam Ravi, one of the most dependable performers (the standout star of Ponniyin Selvan) dropped a bombshell on his 44th birthday (Sept 9) that he is seeking divorce from wife Aarti after 15 years of marriage. The couple have two children. A shell shocked Aarti, a successful entrepreneur in her own right, said “Ravi did not consult me, nor was I aware that he is about to drop this bombshell on me and the kids. This unilateral announcement never gave me a chance …much as I tried to talk to him.” Coincidentally, Ravi’s first hit, M.Kumaran S/O Mahalakshmi was a film that touched the hearts of many. It is about a single mother who brings up her son with no help from a husband who walked out on the marriage. Ironically, Ravi asking for divorce will see Aarti face a similar predicament. Aarti is the daughter of successful TV serial producer Sujatha Vijayakumar. Has Ravi come to the end of his tether because of perceived interference of his in-law? Inspite of his busy schedule, Ravi has always given quality time for his family says sources. No one is aware of the real reason for Ravi’s ultimate break decision. But the way he has done it made Aarti lament, “My grace and individuality have been knocked out by the media speculations.” She still hopes for a rapprochement. Marriages are made in heaven, but hit the rocks in this fantasy world of tinsel make believe.
The Chennai-headquartered Shriram Group has become a bone of contention between NCLT and IRDA. One of the largest financial services companies in the country underwent a series of reorganization in the not-so-distant past. Ostensibly, the objective was to un-clutter its cross-holdings to usher in a simplified structure. By doing so, it sought to consolidate its focus on its core business. The restructuring process also involved two group companies — Shriram Life Insurance Company Ltd and Shriram General Insurance Company Ltd. As part of the process, the separate investments of Shriram Capital in these two insurance ventures were demerged into two SPVs (special purpose vehicles) – Shriram LI Holdings and Shriram GI Holdings. These investments were described as businesses while setting in motion the demerger process. This was done mainly to address the taxation angle. Within a year or so of the formation of these two SPVs, a move was initiated to amalgamate these two with the Shriram Life Insurance Company Ltd and Shriram General Insurance Company Ltd. The NCLT in Jaipur (where Shriram General is headquartered) and NCLT in Hyderabad (where Shriram Life is headquartered) heard these cases for approval. Insurance regulator IRDA raised objections to the amalgamation at Jaipur NCLT. The IRDA insisted that it had sole powers to approve since the merger related to the insurance entity. The Jaipur NCLT, however, declared that a merger of a non-insurance company with the insurance firm falls within the purview of the Companies Act, and, hence, IRDA has no power. The NCLT Jaipur suggested that only transfer of shares would come under the Insurance Act. In this instance, the amalgamation will result in the issue of fresh shares only. Hence, the NCLT Jaipur is convinced that fresh share issue comes under its purview only. The amalgamation move, no doubt, has the NCLT nod. But the NCLT Jaipur order has a lot to ponder over for the IRDA. Consequent to the NCLT Jaipur...
Six decades have gone by since it was incorporated in 1959 as a company with charitable objects under Section 25 of the Companies Act, 1956 (now Section 8, Companies Act, 2013). Ostensibly, it was set up with the object to promote the spread of knowledge across assorted areas – such as politics, culture, art, history, sports and the like – and disseminate news to the general public both about Indian and foreign affairs. United News Of India (UNI) is a multilingual news agency. Once upon a time, it was one of the largest news agencies in India with several hundred subscribers across the length and breadth of the country. Today, it is a shadow of its past. Struggling to survive, UNI has now come under the IBC (Insolvency and Bankruptcy Code) resolution process. A process to invite resolution was initiated in August last year. However, based on a decision taken by the Committee of Creditors, a “Round 2” of the entire Resolution Process for inviting EOI (Expression of Interest) for submission of Plans has been now initiated. With just about 175 employees and revenue of less than Rs 7 crore, this once iconic news agency is on the verge of extinction. With the whole media industry going through tough times, UNI is hoping for a light at the end of the tunnel. Will the resolution process throw up a Good Samaritan? Fingers are crossed, indeed.
Now that N Srinivasan-headed India Cements has changed hands, the focus is clearly on what will happen to Chennai Super Kings Ltd. Once a division of India Cements, CSK was spun off into an independent entity following the conflict of interest issue. Post-India Cements sale, the focus obviously has turned to CSK. Where is it heading? Well, Srinivasan and his family have now consolidated their holding in CSK. They have increased their stake in CSK to nearly 42% from just above 28% in March 2023. The promoters now hold 158,016,303 shares. They had 86,726,373 shares in March 2023. The equity share has a face value of Rs 0.10 (ten paise). CSK Ltd. is the owner of the Chennai franchise of the IPL (Indian Premier League) T-20 cricket team. With the player auction for the upcoming IPL season coming up soon, the consolidation of holdings by the Srinivasan family in CSK reflects the commitment and passion of the promoter group to the cause of cricket. Not surprisingly, the board of CSK has decided to elevate K Viswanathan, popularly known as Kasi, a close loyalist of Srinivasan, as the managing director for a three-year term. Well, the context may have changed following the sale of India Cements. Srinivasan and Co, nevertheless, is focussed like a blinkered-horse on furthering the cause of cricket.
In the wake of the horrific rape-murder of a trainee doctor at RG Kar Medical College and Hospital, Kolkata has been rocked by widespread protests. This disturbing incident has had a profound impact on the business landscape, leading to a significant decline in consumer activity. From the traditional pottery artisans of Kumortuli to the bustling marketing hubs, sweetmeat shops, and restaurants, the city’s economic pulse has noticeably weakened. The usual pre-Puja rush, which begins usually at this time, is notably absent and instead of shopping bags, people are holding placards demanding justice. The usually bustling Kumortuli, the heart of Durga idol creation in Kolkata, has fallen into an unusual quiet this year unlike previous years. Karthik Pal, Secretary of the Kumartuli Potters Association, attributed this change to the recent tragic incident, stating that the usual influx of enthusiastic photographers, young people with cameras, crowding the place even on weekends, has dwindled. Further, there has been less number of buyers for the upcoming Ganesh Chaturthi and Vishwakarma Puja this month. The food and restaurant businesses have seen a decline of 15% in August and if protest continues September could losses of upto 30% says Sagar Daryani, All India Vice President of the National Restaurant Association of India. Dhiman Das, state president of the traders’ organization Mishi Udyog and director of KC Das & Sons, said that from Vishwakarma Puja to Diwali, the profit from this period sustains businesses for the rest of the year. However, if the agitation continues, the industry is fearing a 70% drop in business.
Tatas, Birlas, Wipro and many other business houses have done it – acquiring brands/companies abroad and making the country proud. Joining this prestigious list is the Chandigarh-based KDDL, a pioneer in watch dials, which has acquired 92% stake in a Swiss company which owns the iconic brand Favre Leuba. Favre Leuba, established in 1737, was a popular luxury brand in India too. A whole generation in the 60s, 70s, 80s grew wearing this brand. The watchmaker headquartered in Grenchen, Switzerland is the second oldest watch brand in the world, with Blancpain being the oldest. The iconic Favre Leuba brand was relaunched on August 29, this year at the decentralised event, Geneva Watch Days. KDDL founded by Yash Saboo is a pioneering manufacturer and supplier of watch dials, hands and indexes to top end global watch brands. Its subsidiary Ethos Watches is India’s largest chain of luxury watch boutiques with more than 60 stores selling over 60 premium luxury watch brands. KDDL had bought Favre Leubra from Titan a few years back. Making a comeback, Favre Leuba has ambitious and exciting plans for the Indian market. The company plans to offer affordable and yet high value watches with a strong vintage inspiration specifically from the 1960’s when the brand was known for their robustness and functionality. The brand is looking to unveil 22 references across three distinct collections – Deep Blue, Sea Sky and Chief.
Tamil Nadu leads in current headlines. Yes, F4 is what you are thinking. The first family has come a long way from the modest roots of Thiruvarur. Today Stalin Jr is conducting a car race event…you’ve come a long way, baby. But intel reports are pointing out that Bangladesh illegals too have come a long way to escape strife ridden country, seek jobs and livelihood and perhaps turn TN into a state like Kashmir? The Assam CM Himanta Biswa Sarma has warned TN authorities about this increasing penetration by illegals with fake IDs like Aadhaar cards and others. The Dibrugarh to Trivandrum train via Coimbatore brings job seekers and migrant workers, and it is easy to “vanish” in the crowded industrial and knitwear centres of the hinterland. A labour hungry knitwear industry gobbles up labour. According to KM Subramanian, Tiruppur Exporters Association, “TN textile industry is one of the largest…so illegals head job prospecting head straight to Tiruppur and Karur with fake documents”. About 8 lakh people are employed in the knitwear sector, with 2.5 lakhs from North India. Even 20,000 workers can be absorbed at any given time. The penny dropped with frequent visits of chief Ajit Doval to TN. His latest meeting with Governor RN Ravi has catapulted this security issue to high levels. Is this frequent visit by Doval, a signal that Governor Ravi may get an extension?
Quarter century is indeed a cause for celebration. Why not? For, it has come a long way and is now seeking to carve out a new identity for itself. With a portfolio of close to 50 projects spanning over 24.4 million square feet, primarily in Bengaluru, and Chennai, and Kolkata, Shriram Properties is gearing up to pursue a new path. Many in Southern India often relate this to the indomitable spirit of R Thyagarajan, the founder of the Shriram Group. An iconic name in Tamil Nadu, especially, the Shriram group has gone on to hit national headlines with a series of reorganisation. Today, the group is prominently known in the financial services space. As it gears up to chalk out a hectic growth path, Shriram Properties is ready to step out of the shadows of the Shriram group. Founder Thyagarajan is ever ready to acknowledge the fact Shriram Properties is largely the creation of Murali Malayappan, its Chairman and Managing Director. As Murali is preparing to take control of the company, Shriram Properties has chosen to have its own logo. This signals its first step towards having an independent identity. Yet, claims to be a part of the Shriram groups in its advertisements. Yet, the logo change signals the transition away from the Shriram group for this company conceived and nurtured largely by Murali. Shriram Properties, perhaps, is among the earliest organised players to get into the realty field. As he tries to lay a new road for Shriram Properties, Murali has a definite task on hand.
Despite the fact Tata Power invested Rs 4,245 crore in infrastructure development and network upgradation in Odisha, there was a sudden protest-march from farmers in Western Odisha’s Bargarh district. The protesting farmers led by Saheed Madho Singh Regional Farmers’ Organisation dumped over 3,000 smart power meters in Tata Power’s office alleging that their electricity bills are inflated and are disproportionate to their actual usage. It seems farmers who were earlier getting monthly bills of around Rs 500 per month and this number has gone up anywhere between Rs 2,000 and Rs 3,000 today. Also, there are allegations that farmers have been asked to pay arrears anywhere from Rs 50,000 to Rs 4 lakh. Besides, faulty billing farmers are complaining of frequent power cuts and low voltage as well. Tata Power Western Odisha Distribution CEO Praveen Kumar Verma, however said the smart meters are accurate in measuring the readings. He has assured the farmers their concerns would be addressed including replacement of old cables, voltage fluctuations and power cuts.
Vidal TPA is one of the leading health services management firms and amongst the world’s largest third-party administrators. It has a huge presence in India with over 35 million members and 12,000+ empanelled service providers such as hospitals, diagnostic labs and clinicians. Every year, it processes approximately one million claims and 800,000 pre-authorization requests. It claims that it is an early technology adopter. It reportedly oversees the well-being of over 180 million lives across India, spanning 28 states and 800 cities. It has over 40 offices nation-wide. A change appears to have happened at Vidal TPA. This has, perhaps, forced public sector New India Assurance Ltd to discontinue the services of Vidal TPA with effect from 1st October, 2024 from its Retail Health Insurance Policies. “We have made necessary modifications in our system,” said New India Assurance in a communication to its policy-holders. Surprisingly enough, New India Assurance hasn’t given any reason for discontinuing the services of Vidal TPA. However, grapevine tells us that Vidal TPA has changed hands, and reportedly come under the fold of a competing private entity. Well, the discontinuance of Vidal has put many policy-holders of New India Insurance in a spot of bother. Hopefully, the New India Assurance will quickly put in place a new arrangement without any inconvenience to the policy-
The Reserve Bank of India Governor Shaktikanta Das seems to be on a roll. For the second consecutive year, the 67-year old Das has been ranked as the top central banker globally by the US-based Global Finance magazine. The RBI tweeted, “Happy to announce that for the 2nd consecutive year, RBI Governor @DasShaktikanta has been rated ‘A ‘, in the Global Finance Central Banker Report Cards 2024.” Prime Minister Narendra Modi congratulated him. Mahindra Group chairman, Anand Mahindra tweeted saying “Shakti has won a gold medal in the Central Bank Olympics” and added “his parents have named him suitably.” Das has emerged as one of India’s most effective RBI Governors bagging the international rating recognition. Sources say, this recognition is a silent rebuttal to Doubting Thomases who compared Das with past RBI Governors who were economists like Raghuram Rajan and Urjit Patel against Das’s history specialisation and his unassuming personality. But, Das has quietly walked the talk. The recent global recognition essentially means Das’s strategy has outperformed his peers. The report card said Governor Das achieved this through his domain knowledge, originality, creativity, tenacity in handling India’s inflation control, economic growth, currency stability, interest rate management. Being a seasoned bureaucrat — he was Economic Affairs Secretary, Revenue Secretary before he became a regulator — he did not fall into the usual trap of challenging the government of the day. He quietly let his work speak and the market has always given him thumbs up. His term ends in December 2024 and speculations are rife whether he will get a second extension.
The informal economy in India was estimated at 25.9% in FY16. This has come down to 23.7% in FY23, according to a report by SBI. In absolute terms, about Rs 26 lakh crore was formalised between FY16 and FY23. India has indeed been the number one country in the world in terms of digitalization. Today, street vendors in tier-3 and -4 cities too are using BHIM, PayTM, GPay and the like. Yet,a number of unorganized sectors are still making payments via cash. What is surprising, however, is that the so-called elite professionals comprising doctors, lawyers and chartered accountants continue to take recourse to cash transactions. The hospital market in India is expected to achieve a revenue of $ 126 billion in 2024, according to Statista market research. This number is anticipated to touch $162 billion by 2029.It is expected to grow annually at 5%. Doctors’ consultancy fees are usually received in cash. The consultancy fee ranges from 10 to 25%. Estimates suggest that the doctors’ consultancy fees work out to $ 12 billion. There are elite professionals such as advocates, chartered accountants and the like who too have a cash component to their receivables. There are also other professionals in the informal sector such as plumbers, electricians et al who are paid in cash. The electrical and plumbing services market is nearly $ 5 billion and expected to grow 25% in 5 years. A fourth of the economy is still outside the formal system. What will be the efficacy of policies pursued by the Reserve Bank based on three-fourth of the data? Insufficient numbers aside, the quality of data hasn’t done much to help the cause of RBI. Many governors of the past have complained about this. Well, the solution lies in fast-tracking the formalisation.
The hospital acquisitions of Blackstone, a private equity firm, is getting bigger by the day. Blackstone gained controlling stakes in two South Indian hospital chains– Hyderabad’s CARE Hospitals and KIMS (Kerala Institute of Medical Science) in May 2023 for an investment of Rs 8300 crore. The combined entity under the CARE brand name has emerged as the fourth largest hospital group in India. Now, Blackstone is believed to have struck an all share deal with Aster DM Healthcare to merge their hospital entities under the brand name — Aster DM Quality Care Pvt Ltd. The merger, reported to be in the ratio of 50:50 is between Aster Healthcare and CARE Hospitals. The promoters are expected to approach the National Company Law Tribunal soon. The deal is subject to clearance from the Competition Commission of India. The deal, which would be a share swap agreement, will see the Azad Moopen family’s 42% in Aster DM diluted in the joint entity and Blackstone’s increased. Aster Healthcare is today valued at Rs 19,068 crore and CARE at Rs 16,800 crore. The merger would place the new entity as a major hospital chain with Aster having 5000 beds capacity and CARE another 5000 beds. Apollo Hospital is the biggest hospital chain in this segment. Dr Azad Moopen, chairman of Aster is expected to head the new entity as executive chairman with a professional management team running the day-to-day affairs.
The city of Chennai is known for a robust ecosystem that fosters family business. Traditional family businesses are dime a dozen in this part of the world. They have contributed enormously for the development of Tamil Nadu, in particular, and the country as a whole. Formidable business groups such as TVS, Murugappas, Amalgamation, Sanmar, India Cements, Ramco, Rane, Apollo, the Hindu and the like have all become iconic names in Chennai. An amalgamation of events – opening up of the economy, expansion of families, intense competition et al – has brought tough challenges to the family businesses. Not surprisingly, a wind of change is sweeping the Chennai business families. The Chennai corporate world was caught by surprise when TVS Sundram Fasteners Pvt Ltd, which had 48.36% stake in Suresh Krishna–headed Sundram Fasteners, sold 32,95,500 shares of Re 1 each at a whopping Rs 1,381 apiece. Post the dilution, TVS Sundram Fasteners will hold 46.79% in Sundram Fasteners. The dilution was ostensibly to help one of daughters of Suresh Krishna to raise funds for a new venture. Observers see in the dilution a kind of `family arrangement’ that has sort of provided some sort of an exit window to a family member in the business. Not long ago, there was a similar `family arrangement’ which saw a “non–compete family arrangement” between Venu Srinivasan, his wife Mallika Srinivasan and their kids. Much earlier, the Murugappa group inked a `family arrangement’ with one of the female members of the group – Valli Arunachalam – who had gone public, demanding either a role in the business or fair compensation. It took several decades for the four families that formed part of the larger TVS group to go their separate ways legally. The TVS model for `family arrangement’ appears to be a useful guide for many `family arrangements’ that are increasingly likely in the new–normal family business environment. Maybe, the Murugappas and Apollo have a lot to ponder over.
A consolidation of hectic kind is sweeping the Indian cement field with the Adanis and UltraTech Cement of Aditya Birla Group engaging in a no–holds–barred acquisition binge. The cement industry, perhaps, is moving away from distributed production to concentrated production. The churning is indeed a part of a dynamic process. The change, however, pushes the system down the memory lane, it appears. In former times, the IT industry had a lot of ERP companies such as Oracle, JD Edwards, Peoplesoft, BaaN, SAP and the like. Similarly, the CRM space had plenty of players like Vantive, Seibel et al. In the first decade of this century, a shift had happened in ERP space. Peoplesoft first took over JD Edwards. Then, Oracle acquired Peoplesoft. Later, Oracle came out with a blended ERP which had the features of Peoplesoft and JD Edwards. SAP, in the meanwhile, had taken over Siebel CRM. The competition now is between two giants –– Oracle and SAP. This is a far cry from the days when the ERP space had a host of small as well as big players. Indeed, change is the name of the game. Forget the adage “small is beautiful”. Big is the in thing today. How will the emerging new normal play out in the larger economy? Well, time alone will answer this.
Winds of change are visible here. And, this change must bring a world of good to this organisation, which had almost slipped into oblivion. Kothari Industrial Corporation (KICL) is turning over a new leaf with a fresh management team. It has put the organization firmly back on track. A non-leather footwear park at the backward district of Tamil Nadu is already under way. With focus fixed on beefing up domestic production, this new team has gone at an hectic pace in putting together multiple alliances to make the upcoming park a role model for the country. Managing Director Jinnah Rafiq Ahmed is consumed by a passion to bring the past glory back to this once iconic organisation in the Dravidian land. Under his captaincy, KICL has already returned to the stock market following the re-listing of its shares. Right now, Jinnah Rafiq Ahmed is leading the KICL management with a deep sense of ownership! As he gets into a mission mode, KICL has just inked an alliance with OTB Industria e Comercio de Componentes e Technologia Ltda, (OTB) Franca of Brazil to set up a joint venture company to manufacture and market invisible pens and innovative solutions for shoe components. The joint venture will also explore the possibility of making UV (ultra violet) lights, which will help in identifying the marking. For the joint venture – Kothari OTB India Limited – the complete technology will come from the Brazilian partner. The Indian partner will hold majority shares in the joint venture. Jinnah Rafiq Ahmed is determined to use KICL as a fulcrum to provide jobs to women in backward areas of Tamil Nadu.
In the modern business world, they play a critical role. The entire community of stakeholders in a corporate entity look for their views. Much of the decisions – of stakeholders across the canvass – are often guided by their views. The ratings of the raters are critical in the emerging business environment, which is increasingly turning riskier due to very many imponderables. Their rating can decisively impact – either way – the growth and development of any entity. Well, rating agency CARE has put the ratings assigned to the bank facilities of The India Cements on rating watch with positive implications. The CARE move comes close on the heels of the N Srinivasan-led promoters selling their stake to Aditya Birla Group-owned UltraTech Cement. No doubt, the stake sale has happened. But the operating environment remains what it was prior to the sale of sake by the promoters. A formal change of ownership will have to wait for clearances from assorted regulatory and other entities. CARE has taken a proactive view already. Sources say, CARE has removed the non-cooperation clause as non-applicable. It has indicated that it will review the ratings once all clearances are in place. India Cements has bounced back to profit track with Rs 57.45 crore net profit in the first quarter ended June 2024 against Rs 74.87 crore loss reported in the same period last year. Net profit is due to profit from sale of Parli Grinding unit to UltraTech. The ratings could cut both ways. That’s why care has to be exercised while giving a rating. This time around CARE has given a positive spin on India Cements, which has come under Birlas.
The advent of the Internet and the growth of digital space in its wake has turned everything topsy-turvy. The media world, especially, has undergone an unimaginable metamorphosis. The way news is consumed these days has ensured that the print version of the media world struggles for ever. If that is so for dailies, the predicament of the magazines is unimaginable. Not just the consumption behaviour has changed. The speed of the information dissemination has increased manifold. All these have left a big question mark on the sustainability of the print media of assorted kinds. This one has been in existence for over half-a-century. After the demise of its founder late S Viswanathan, this Chennai-based business publication is set to disappear into the pages of history. Promoters have announced that September 2024 will be the last issue of the Industrial Economist, which has always focussed on the growth and development of the corporate world, especially, in the south. An industrious person with a blinkered-horse like focus, the late Viswanathan tried his best to rejuvenate the Industrial Economist which was launched in 1968. The changing media landscape, rising costs and declining advertising revenue have all conspired to consign Industrial Economist to history. Very many summers ago, Chennai saw the shutters down on the iconic English evening newspaper, The Mail.
What’s in a name? What’s in a brand? All these can just disappear. As time goes by, all these can fall by the wayside. How else can one view the happenings in the corporate world of Tamil Nadu? In the early 90s, one of the brightest jewels of the Chennai industrial world — Enfield – changed hands. Promoted by S Viswanathan and his family, Bullet-maker Enfield was sold to the Eicher group. Viswanathan & his ilk had to give up Enfield due to a combination of issues including scalability. Today, the Eicher group has taken Enfield to a new height globally. A few days ago, another big name in Tamil Nadu – The India Cements – was sold to the Aditya Birla Group UltraTech Cement. That sale of India Cements by N Srinivasan and his family reflects the challenges of a family-owned business. There is a similarity between Enfield and India Cements in their sale. The promoters – either by choice or circumstances — had chosen to quit. What is of significance is the fact that both have changed hands due to a sale process. This is in contrast to management changes that are happening elsewhere in the Indian corporate world. There are many such these days and happen due to corporate insolvency resolution actions. The change of guard both at Enfield and India Cements pose new challenges to family-owned businesses in Tamil Nadu. Change is the sign of not just development but also maturity, it appears.
Journeying from Kolkata to London might not raise many eyebrows, but doing it entirely by car certainly will. This extraordinary adventure has been meticulously organized by anesthesiologist Dr Debanjali Ray and businessman Kaushik Roy. The 64-day expedition, spanning an impressive 18,000 km, is set to begin on August 24 and conclude on October 25 and joining them on this ambitious journey are 15 travel enthusiasts. It is a journey of the Old Silk Route — the Sindhu Civilisation — that will see them traversing through 23 different countries across minor Asia and Europe. The adventurous route will traverse through Nepal, China, Kyrgyzstan, Uzbekistan, Turkmenistan, Iran, Armenia, Georgia, Turkey, Greece, Bulgaria, Serbia, Hungary, Czechia, Poland, Slovakia, Germany, Switzerland, Liechtenstein, Austria, and France before reaching the final destination in London. As part of a cultural exchange, the team will be collecting water from major rivers such as the Ganga, Brahmaputra, Indus, and Yangtze on their way to London. This collected water will be used in the ritual observance of Durga Puja. Interestingly, this expedition is a tribute to the former Kolkata-London bus service, which was once the longest bus route in the world. Operating from 1957 until the 1970s, this historic bus service had a journey duration of approximately 50 days (NOT 132 DAYS??). By completing their journey in 64 days, the Ray-Roy duo not only honours this historical landmark but also establishes a new one. And they will end their long drive by partaking at the Thames Durga Puja Parade Carnival in London.
These two have been an inseparable part of his life. He is not just passionate about them. He has gone deeply into them. He lives these two. And, he breathes them as well. The two Cs — cement and cricket — have largely influenced the personality in him. A sense of toughness defines the man. Yet, he wears a sporty exterior. A combination of factors have conspired to goad the indefatigable N Srinivasan to let go of the cement business. It’s a tough call to quit. But he has reluctantly renounced the cement business. But he keeps his love for cricket intact. He may have sold his dear India Cements to Aditya Birla Group-owned UltraTech Cement. But he appears to have ring-fenced the league-level cricket teams supported by India Cements for decades. If grapevine has to go by, the league-level cricket teams are reportedly brought under the wings of Chennai Super Kings (CSK), which is the Chennai franchise owner of the IPL (Indian Premier League) team. Still, there could be some cricketing issues. The sale pact with UltraTech is perfect cricket, it appears.
If winter comes, can spring be far behind? If UltraTech Cement arrives, can the Adanis stay away? Well, the Aditya Birla Group-owned UltraTech Cement has just re-laid the industrial landscape in Tamil Nadu by buying out the indomitable N Srinivasan in The India Cements Ltd (ICL). Is this the beginning of a new order in the Southern cement field? All of a sudden, the game is getting redefined. In a fragmented south side story, the opportunities appear to be quite a lot. Not surprisingly, every little player in this part of the world pales into insignificance – reduced to the level of a small scale industry (in terms of capacity and financial muscle) – when compared to the Adanis and the Birlas of Ultratech. Adanis have just recently acquired Hyderabad-based Penna Cements. With Ultratech making its advances in the Dravidian land, Adanis have reportedly upped their ante and are looking around aggressively for cement assets. There are legacy names in this part of the world with good pedigree. When the competition takes an intense format, the playground becomes a vicious turner. When the name of the game is big, the focus is increasingly turning out to be on capacity building. What’s in a name? What’s in a brand? Everything can get consigned to the pages of history when the big game arrives!
After 75 years, The India Cements Ltd (ICL) has changed hands. The indefatigable vice-chairman & MD N Srinivasan has finally called it quits and sold his family holdings to the Aditya Birla Group-owned flagship company UltraTech Cement. At the end of the day, he was a reluctant seller having got into a pincer-like situation by a combination of physical, economic and financial factors. An aging Srinivasan and aging plants have pushed ICL, whose birth could be traced to the pre-Independence era, into the hands of UltraTech. It may not be easy for Srinivasan -– who breathes cement -– to let go of ICL. No doubt, Srinivasan and his family are richly rewarded for their renunciation of ICL. Yet, he must be silently suffering the pain of parting ICL. Significantly enough, he has managed to ring-fence Chennai Super Kings (CSK), the largely successful IPL (Indian Premier League) cricket team. As an independent unlisted company, it is now largely owned by him and his family. CSK has not only gone from strength to strength but also spread its wings across the globe. A passionate patron of Cricket and cricketer, Srinivasan and his ilk could now focus fully on the game like a blinkered-horse. Franchise-based sport is proving to be the future across the globe. Significantly enough, Ultratech will get ICL only since Srinivasan and his family have ring-fenced India Cements Capital as well. Indeed, a fresh innings has begun for Srinivasan and his family.
Remember Ramesh Vangal. Once upon a time, he was the face of Pepsi in India. In fact, he led PepsiCo’s landmark entry into India in the early 1990s.This was widely considered as a pioneer in India’s opening of FDI. Post-Pepsi, the arc light, however, continued to be on Vangal as he formed an alliance with Suresh Kalpathi, the founder of SSI Ltd. Vangal also got into a cobweb when his company, Katara Holdings Ltd (KHL) Mauritius, bought into Tamilnad Mercantile Bank (TMB), which was mired in controversy when internecine quarrels among promoter groups led to the shares slipping into non-Nadar hands. With funding facilitation from Standard Chartered Bank (Mauritius), KHL struck a complex deal in 2007 to acquire TMB shares. But the Enforcement Directorate found Stanchart guilty of violating Foreign Exchange Management Act in this particular transaction. Stanchart took the legal route to retrieve its money from KHL. The Supreme Court of Mauritius has since ordered the liquidation of KHL. Significantly enough, Vangal’s KHL holds over 53% stake in BSE-listed Kerala Ayurveda Ltd, a pioneer in providing Holistic Healing and Wellness Solutions. The official liquidator of KHL has informed Kerala Ayurveda that since he now has the custody and control of the shares held by KHL in the company, no trades are to be allowed on this stake without his authorization. The arc light is still focused on Vangal, it appears.
In Tamil Nadu, the month of Aadi (sacred month between Jul 17 and Aug 16) holds a distinct hysterical attraction for both buyers and sellers. Retailers advertise the most attractive discounts and buyers just cannot resist those drool worthy offers. But why Aadi month? For those familiar with religion and rituals, Aadi is not an auspicious time for weddings and family events. You may be surprised to know that newly-weds are not encouraged to cohabit ….a strange social custom with strong roots in superstition. Yet, Aadi is considered super auspicious for staunch devotion. Every day in the Tamil calendar has a deep religious significance. How did retail hysteria find its place in Aadi? Business and religion have coexisted profitably for ages…as religion has enabled the need to buy numerous products to appease the Gods, especially Ma Durga …offering dozens of glass bangles and sarees to the Goddess, simultaneously gifting to women devotees churning up demand for gifts galore that are sold at irresistible prices. Retailers are happy when the crowds stampede. Buyers use this opportunity of rock bottom prices to stock up for future gifting, weddings and events. Results: inventory flies out. The iconic store Chennai Silks opened Aadi sales this year with its full page ad featuring a “madisar model” draped in a nine yards saree. Religion, business and politics mesh here…the Dravidian ideology though consistently mocking Brahmin culture, is not averse to borrowing symbols of this culture to boost business. Ideology, religion, business everything has its place.
What’s in IT? Well, IT (information technology) makes an organisation efficient. Is it really so? Ask S Aruldass, managing director of the Chennai-based EAFS which was established in 1992. The company is a leading IT-Enabled Infrastructure & Engineering solution provider and project specialist in the design and building of Data centers & Network Solutions. Over eight summers have gone by and yet, this Chennai-based entrepreneur is at his wit’s end to recover the money for the services rendered by his company to Bengaluru-based IT major Wipro. After selling off his multi-cuisine restaurant (Noodle Kings), he founded EAFS to provide power and control solutions to corporations. It isn’t easy to be an MSME (micro, small and medium enterprise) organisation. He is acutely aware of this. But, he hasn’t bargained for an IT giant like Wipro to delay payment for services rendered several years ago! Constant churning of people in Wipro has only worsened his predicament. The IT age appears to have pushed the inter-personal relationship to a faceless computer interface. This is indeed causing avoidable hurt for smaller ones like EAFS. Non-receipt of payment, however, does not entitle EAFS to hold back on GST payments. The cumulative weight caused by non-receipt of payment from Wipro has cast a huge burden on him and his company. What is small for some may prove to be big for some others. Is Wipro listening?
The much-awaited Vizhinjam International Seaport, India’s first deep-water container transhipment port began trial runs with Mothership- San Fernando, a Maersk line vessel berthing at the port with 1930 containers. Once fully operational, the turnaround time of the port is expected to be less than a day (0.9 day), which is better than the U.S. (1.5 days), UAE (1.1 days) and Singapore (1 day). One of the major attractions of the port is its proximity to international shipping routes and its deep draft. Global shipping majors prefer ports with an 18 metre or more draft. Vizhinjam has a 20 meters draft, while neighbouring ports like Cochin and Thoothukudi have insufficient draft of 14.5 m and 14.2 m respectively. The Vizhinjam Port, once fully operational, will be competing with some of the major ports in this region — Colombo, Singapore, Port Klang and even Dubai. While the projected handling capacity of the Vizhinjam Seaport in the first phase would be One million (TEUs) Twenty foot equivalent units, Singapore does 36.8 million (TEUs) and Colombo 6.85 million (TEUs) as per 2020 figures. Work on the Vizhinjam Port started in 2015 under a public-private development plan. For this purpose, the Kerala Government entered into a concession agreement with Adani Vizhinjam Port Pvt Ltd. Out of the total investment of Rs 8,867 crore, the Central Government has allocated Rs 5,595 crore and State Government Rs 818 crore. The port hopes to be fully operational by October 2024.
Chennai is changing. More precisely, the heart of Chennai is undergoing a major metamorphosis. Yester-year iconic industrial and commercial properties are giving way to new skyscrapers, high-end luxury flats and shopping malls in the heart of Chennai. What spurs the change? There are opportunities aplenty for redevelopment now. The increased FSI (floor space index), the Metro Rail projects, myriad road bridges connecting central business corridors across Chennai, the rising demand from HNIs (high network individuals) and NextGen family members of the business group have all combined to liven up the real estate scene in the heart of the city of Chennai. Some of the iconic properties in Chennai are going through a re-development process. Crowne Plaza in Adyar, TVS property on Mount Road, President Hotel on RK Salai and Shanthi Theatre on Mount Road, among others, are now undergoing a metamorphosis. The Brigade group has now announced the development of a new landmark – Brigade Icon – on Mount Road in Chennai. It is now developing the property it had acquired from one of the wings of erstwhile TVS group into a residential complex. In the evolving Chennai landscape, owners of old properties find it prudent to relocate their businesses to IT and newer corridors. Indeed, the change is happening at a faster pace in Chennai.
Air Kerala, the long standing demand of Malayalees, is finally taking shape. The brainchild of two UAE entrepreneurs, Afi Ahmed and Ayub Kallada, Air Kerala will be the first regional airline originating from Cochin. The airline which is registered under the name, Zettfly Aviation, has received the NOC from India’s Civil Aviation Ministry to operate scheduled commuter air transport services for three years. With NOC in hand, the promoters will now have to obtain an Air Operator’s Certificate. The next step also involves zeroing on the right type of aircraft. Initially, Air Kerala plans to buy/lease ATR 72-600 model aircraft to connect tier-II and tier-III cities. The intention is finally to graduate to tier-I cities and expand to international routes. For this, the airline will have to expand operations over a period of three years with an expanded fleet including wide-bodied Jets. Air Kerala has been the dream-child of the Kerala Government since 2005, to operate a low cost air service offering economical fares to expats. Last year, Afi Ahmed, one of the promoters who owns Smart Travels, bought the domain name airkerala.com for a whopping Dh 1 million. The promoters plan an initial investment of DH 1.1 billion. Zettfly Aviation’s board comprises Afi Ahmed, Ayub Kallada and Kanika Goyal all having expertise in the aviation field.
In a country of over a hundred crore people, job creation must be the principal objective. Viewed from that perspective, the Make In India campaign of Prime Minister Narendra Modi must be welcomed whole-heartedly. Generating a slogan is a lot easier. Making it a reality, however, is a tough proposition. There are so many hurdles in the way for making the Make In India pitch a reality. It can become so only if all arms of the government – both at the Centre and at state level – work in complete coordination with each other. This ambitious non-leather footwear project in Perambalur district of Tamil Nadu promoted by the Kothari group is facing a peculiar problem. The technology partners — those setting up units in the non-leather footwear park — are unable to get fly in technical experts from China to India. Their presence is critical to get these units off the block quickly. Notwithstanding recommendations from assorted agencies, the authorities concerned are yet to clear Chinese technicians’ visas. Issues of minor nature like this can jeopardise the Make In India focus. Border skirmishes notwithstanding, bilateral trade between India and China in FY23 stood at $ 113.83 billion. As of 2022-23, China was India’s third-largest trading partner. Well, New Delhi must find ways to remove the glitches coming in the way of the Make In India campaign.
The deal street is abuzz with the news that the former HDFC executive Satrajit Bhattacharya is close to acquiring a Mumbai-based mid-sized housing finance company. People in the know of the deal, say it is perhaps one of the biggest acquisition deals by a start-up in recent times. Bhattacharya is expected to make a public announcement soon of his acquisition as well as the launch of Weaver Services. Ever since the 54-year old Satrajit quit his high profile job from HDFC, the country’s premier housing finance company, he has been on the radar of I-bankers and Executive Search firms with a job offer. But he was keen to become an employer not an employee. As soon the cooling period was over Satrajit made his entrepreneurial plans of getting into affordable housing finance space public. Being an M & A specialist, his strategy to hit the ground running by acquiring a housing finance company seems to have attracted well known PE players. It is learnt that they are willing to bankroll him for more acquisitions. Satrajit’s entry into the housing finance space seems well-timed given the fact that the government is keen to address the massive housing shortage in India –estimated at around 10 crore units — with the bulk of the shortage being in the lower income segments.
He knows inside out of cement. He breathes cement, and is passionate about his organisation. He is also acutely aware of the fast-changing dynamics in the cement industry. All along, he has run the cement business in a co-existing system. Initially, he worked with the Chemplast group as a co-promoter. Subsequently, he carried on with the Radhakishan Damani of DMart fame as passive investors. With the Damanis selling their stake to Aditya Birla Group company UltraTech Cement, N Srinivasan has to co-exist with the Birlas now. Is there a definite method to the latest twist? The way things are panning out, it appears a win-win for all the three players. Damani has cashed out happily. Birlas have gained more than a toe-hold into The India Cements, which has a legacy going back to pre-Independence days. Birlas have, for now at least, chosen to stop at the level of financial investor. Given the tall stature of Srinivasan and also considering his age, Birlas have taken a wise course. For Srinivasan, the situation is not new and yet new in a way. This time, he has to co-exist with a financial investor who is also a cement maker. For stakeholders across the canvas, this could be a welcome development. After all, Birlas have a rich background in terms of culture and values. That bodes well for India Cements. What lends credence to the emerging new setting was the unreported informal confabulations at India Cements a few days prior to the sale of stake by Damani in the open market to UltraTech people. The current arrangement seems perfect given the fact that both Srinivasan’s daughter and granddaughter are passionate about driving the cricket franchise Chennai Super Kings. Interestingly, for Birlas there is a Tamil Nadu connection, Kumar Mangalam Birla’s mother Rajashree was born in Madurai. She went to St Joseph’s Convent School and Fatima College. After her marriage to Aditya Birla she moved to Kolkata.
Do you remember Parry, Nutrine and Ravalgon? For many decades, they were dominating the Indian toffee and candy industry. Many smaller firms producing unbranded candy and toffee, too, co-existed with them. But these big names have long become forgotten brands. The minor ones have also fallen into the pages of history. A combination of factors has appeared to have accelerated the consignment of these brands to distant memory. For one, the industry itself has undergone a metamorphosis. For another, the advent of digitisation too has pushed them to near oblivion. Digital payments have become popular, and every vendor of assorted sort is happily accepting the digital payment of even the tiny sum. Time was when toffees and candy proved useful for the vendors who did not have `small change’ to return the buyers the balance money. Toffees and candy came in handy for vendors who used to offer them in lieu of tiny change to make the balance payment for the buyers. The advent of digital payments changed the whole dynamics surrounding the toffee and candy business since the vendors don’t need to stock them to offset the shortage of ‘tiny change’. Also, in the emerging modern world, the consumption habits of people at the bottom of the pyramid too have changed. If change has brought in transformation at a larger level, it has also caused huge damage at a different level. That has turned bitter for some, at least!
Artificial Intelligence (AI) is changing the entire environment upside down. Globally, AI has created a big dent in sectors, especially involving people. The AI-led disruption is bound to have reverberations across the industrial canvass. Given this, the coalition government led by PM Narendra Modi has an onerous task on hand. The MSME (micro, small and medium enterprises) is already at the edge in the wake of technological advancements caused by AI and the like. With the proverbial sword hanging over the heads of job-goers, a sense of uncertainty is fast spreading among the working class. Given this, the expectations are that the Modi government will give priority to MSMEs to boost jobs. Given the fast-evolving AI-led scene, a lop-sided focus on the service sector will do no good to the employment ecosystem in the country. Coming as it did against this backdrop, the allocation of the MSME portfolio Jitan Ram Manjhi, 79, has come as a big surprise. Top sources in MSMEs aren’t quite sure of the way ahead for them. What MSMEs require at the moment is a fresh mind, new vigour and right incentive to prevent them from slipping into the pages of history. An existential crisis of serious nature caused by metamorphosis in tech space is worrying the MSMEs. Is New Delhi listening?
The Pune-based Chitale Bandhu Mithaiwale has chalked up ambitious expansion plans involving an outlay of Rs 260 crore. The third generation Chitale Bandhu is known for making namkeen (especially bhakarwadi) and sweets that Maharashtrians world over swear by. The new thinking among the management is to focus more on sweets and savoury business even if it means competing with the group’s flagship dairy business which has a turnover of Rs 1200 crore. Indraneel Chitale, managing partner, who is spearheading the expansion drive is extremely confident of his gameplan. His confidence stems from the success of the recently launched BingeBar. Here, the strategy was to make quality Chitale products affordable and available to those at the bottom of the pyramid. For instance, average Chitale products are priced around Rs 100 while Bingebar is priced at Rs 10; it will also be available at the groceries and corner shops. This is on-the-go namkeens with the convenience of no spillage or container requirements. Having tested the market, and to feed this rising demand the company is expanding its Ranje plant spread over 17-acre located close to Pune. The current output of the plant which is 30 bars/minute will be raised to 1,000 bars/minute. Besides, Chitale’s are geared up to launch Ready-To-Eat Meals by the end 2024.
Suddenly exorcised “ghosts” are on the calling end of the mobile. Our very own serial entrepreneur Chinnappan Sivasankaran, he of the Aircel fame in a podcast hosted by Raj Shamani said he was pressured to sell his business during the UPA government. Siva claims that he was “pressurised” to sell off Aircel to Maxis by a duo of siblings who held far reaching clout in the UPA government. “I just made a paltry sum of Rs 3,400 crore from the deal, if I would have sold it to AT&T I would have got $ 8 bn (sic),” Sivasankaran said. On being asked what was the compulsion then. He said India today wasn’t like the India then. “Today no one can pressurise you,” he said, adding back then the entrepreneur had to face pressure “to sell the company to a particular person”. Why did Siva not come out openly with his allegations? Why watch helplessly when a brand you have built with much pain be sold off like an Arabian slave? He says that he faces no such pressures in the current India (NDA government), that if you can ride high and turboprop your business, the sky is the limit. BJP Leader K Annamalai wasted no time in attacking the UPA government. On X he commented that “The misery of intimidation and subjugation businessmen went through during the UPA regime made India fall several steps in the ladder of development. Aircel founder Thiru Sivasankaran’s statement is a testament to the ease at which our country’s wealth creators are striving today under the leadership of our beloved PM Thiru @narendramodi.”
This fourth-generation entrepreneur is just 23 years old but is already a global trotter promoting his company’s brand Suhana Masala in over 65 countries. Vishwa Chordia, it is learnt, has chalked up aggressive expansion plans to consolidate his company’s overseas presence. The Pune-based Suhana masala which makes a range of homemade masalas, papads, and pickles among others is investing in a new plant to meet the rising global demand from the Indian diaspora. The company already has five plants. The new plant is fast coming up near Bholi, Satara Road in Maharashtra and is expected to go on stream by end 2025. The 3-lakh square feet plant — part of the 17-acres — is designed to meet international standards. This 3000 MT plant will cater to both domestic and global markets.
The Indian market for toys continues to grow as more international players come into the market as well as manufacture their products here. The latest is Tonka from the U.S., a former maker of toy trucks, which is being introduced by toy veteran Sarabjeet Singh who runs the Delhi-based Centy Toys. Tonka, owned by Hasbro, is all set to roll in its big wheels for the first time in the country. The brand has been sparking imaginations worldwide for over 70 years with its durable and innovative toys. Now, Centy is ready to share this legacy with its Indian customers, Singh says: “Get ready to dig, haul, and build with us. Let’s make history together!”
A lot is happening here and happening at a hectic pace. Well, the Chennai-born Shriram Group went through a major overall with mergers and reverse mergers resulting in a bloated Shriram Finance some time ago. It continues to hog the headlines. Last month, the South African conglomerate Sanlam upped its stake in the general and life insurance joint ventures with the Shriram group by picking up some shares from a private equity holder as well as from Shriram Ownership Trust. Significantly enough, Sanlam also divested a part of its direct holding in Shriram Finance to Shriram Value Service, a subsidiary of Shriram Capital Private Limited (SCPL) to facilitate the stake hikes. Sanlam owns 40.70% of SCPL. The balance is controlled by SOT and its affiliated entities. Now, Shriram Finance has gotten rid of its entire holding in Shriram Housing Finance for a whopping Rs 4,600 crore to Warburg Pincus. The Shriram move has put the long-time watchers of group and stock market pundits alike on an alert. Brand Shriram has always remained in the realm of mystery before the re-jig and post the reorganisation as well. The sale of the housing finance arm was on the cards always, no doubt. But the recent actions suggest a larger monetisation exercise at Shriram group.
Dharani Sugars and Chemicals, a listed entity, has returned to the hands of the original promoter. Well, the Chennai bench of NCLT has allowed an application filed by promoter PGP group for settlement and revival of Dharani Sugars and Chemicals.The application was filed under Section 12A of the IBC (Insolvency and Bankruptcy Code). Section 12A permits the withdrawal of an insolvency application against a corporate debtor if approved by at least 90% of the committee of creditors (CoC) in cases admitted under Section 7, Section 9 or Section 10 of IBC. Following the admission of the application, Dharani Sugars and Chemicals has come out of insolvency resolution process. This is the second victory for the PGP group before NCLT. Sometime ago, the group regained control of Appu Hotels, which runs the iconic Le Royal Meridien Chennai and Le Meridien Coimbatore. DSCL has three sugar plants in Tamil Nadu. DSCL was the first sugar company in Tamil Nadu promoted by NRI investors led by Dr Palani G Periasamy. Its revival augurs well for the Tamil Nadu sugar industry, one of the traditionally strong businesses of the state which has started languishing due to fall in cane cultivation area following drought and farmers opting for paddy, cotton and other crops. Well, Periasamy has reasons to cheer.
It is a household name in Tamil Nadu. Vummidi Bangaru Jewellers (VBJ) hit the national headlines after the installation of Sengol (sceptre) near the Speaker’s seat in the new Parliament. Vummudis were traced to be the makers of the Sengol that the Adeenams in Tamil Nadu had gifted to Pandit Nehru to symbolise the transfer of power from the British. The Sengol installation in the new Parliament has indeed given VBJ not just national visibility but global focus as well. The VBJ is yet again in the limelight. This time around, it is for its association with the Ram Mandir at Ayodhya. VBJ has presented an exquisite SriRamCharitManas, a sacred book to Ram Mandir, in all its golden glory. It features 524 intricately designed gold pages. Each page narrates the timeless chronicles of Lord Ram with poetic eloquence. It is kept in the sanctum sanctorum of Ram Temple at Ayodhya. Prior to presenting it to Ram Mandir, VBJ allowed the public to experience the “precious epic” by keeping it for public view at its store in Anna Salai in the heart of Chennai. Historically, VBJ stands for trust in the gold jewellery trade. That is getting expressed in newer ways, it appears.
India is witnessing two mega events this summer. As the people of the country are making a beeline for polling booths to elect a new Parliament, a cricket fever of an exciting kind has also gripped the masses with yet another edition of the popular Indian Premier League (IPL) truly under way. Is it possible to co-run national elections and the IPL? Why not? That seems to be the view of the political masters in New Delhi. This view is entirely opposite to the one held by Congress-led the UPA government earlier. Several seasons ago, the annual IPL was moved to South Africa since the then regime did not want that to clash with the national elections. With the Modi Government making a strong pitch for Make-in-India, shifting IPL out of the country could not even be considered by the political masters in New Delhi, lest it should send wrong — rather negative — signals to people at large. Moreover, the IPL has, over the years, become a money spinner with a huge multiplier effect on the national economy. They can’t afford to lose huge revenue by shifting IPL out of India during the national election. Well, the people aren’t complaining about the double dhamaka!
Global auto giant, Ford Motor Company is planning its third entry into India. According to Autocar India, “Barely two years since Ford shuttered its Indian operations, the U.S. car maker is plotting a comeback and is evaluating multiple options.” Kay Hart, the head of Ford Motor Company’s International Market Group visited India in March to “assess its entry plans”. Interestingly, it will be the third time the U.S. auto giant will be entering India. It had set up shop in 1926 as a subsidiary of the Ford Motor Company of Canada. But, the Indian company had to be liquidated in May 1953 as a result of severe import restrictions. Then post liberalisation, it entered India for the second time in 1995 as a 50:50 partner with Mahindra & Mahindra and set up a plant in Tamil Nadu. But this JV did not work so the U.S. company hiked its stake to 72% and renamed the company to Ford India Pvt Ltd. Over a period of time Mahindras exited the JV. But somehow it was not able to make inroads into the Indian passenger car market the way Hyundai did with Santro. So nearly after 25 years, Ford once again chose to exit the Indian market in 2021 as it failed to keep up with the competition vis a vis the whole operations was proving to be unviable. Fortunately, the company which had put its TN plant on block at the last moment decided against it. Now, this plant will be cranked up to produce both ICE and EV products. Ford officials have already met the Tamil Nadu government officials with their detailed plans.
Maharashtra is hyperventilating over Elon Musk’s plans to invest US $2 to $3 billion, in the state, probable announcement during his visit to India. According to informed sources, “Maharashtra’s Ratnagiri (Konkan belt) or Vidarbha region (in north) may find precedence over Mumbai Metropolitan Region (MMR) that boasts an automobile cluster near Pune city. Tesla’s plan to manufacture electric vehicles by itself is not news as much as the resultant disruption in the new technology for batteries these EVs will use. Already, Tata Motors enjoys first mover advantage in this specialized automobile sector within the conventional technology batteries, with its Exon and Punch EV models enjoying advantage of competitive pricing also.” Additionally, recent discoveries of lignite deposits by the Neyveli Lignite Corporation NLC, a private limited company of the Union Government of India, may also synergise with the forward foray in India’s EV segment. There is also a sharp political inclination to house the Tesla EV project within Maharashtra that recently lost out to Gujarat on the mega Vedanta-Foxconn semiconductors investment. A BJP source insists, “The then MVA government under Uddhav Thackeray had set a pre-condition of government primacy over appointing contractors related to the project that soured the deal. Subsequently, after heading into Gujarat Foxconn parted ways with Vedanta but the project moved towards financial closure.” The BJP leader says that with state assembly elections scheduled in Maharashtra in November 2024, the entry of Tesla in the state, would help to enthuse industrial growth and progress while dissipating any residual bad aftertaste over the Vedanta exit two years ago.
UK Prime Minister Rishi Sunak’s wife Akshata Murty is to be handed another 10.5 million pounds as dividend for her 0.94% stake in the tech outsourcer Infosys her father NR Narayana Murthy founded. That translates to about Rs 109 crore while the total dividends she has enjoyed so far amount to around 50 million pounds. The joke going around the UK now is that Akshata has enough money to buy her hubby 1.16 lakh pairs of Adidas Sambas to which sneakers Sunak had given a bad name for wearing the trendy shoe while being such an unpopular PM of the UK that his party is set to face a total disaster at the general elections whenever he chooses to hold them this year. The news will not go down well with the British public who are disowning the Tories at the rate of tens of thousands a day as the Conservative government seems set to go down after ruling for 14 years since winning the 2010 elections. Akshata is paying her taxes now in the UK after discarding her domicile status. Even so, the envy at the PM’s wife’s inherited riches is hurting the public who are facing tough times in the UK.
The man who single-handedly built the BSE SME Platform over the last one decade has put in his papers. A diehard workaholic Ajay Thakur, is responsible for starting and making SME Exchange and Startup Platform successful in India. Today his name has become synonymous with SMEs. Even though BSE is a century old Brand but when it came to promoting the SME platform, the task Thakur was entrusted in 2010, it was not exactly a cakewalk. MSME promoters were not keen to list on this platform. He nearly personally met 35,000 SMEs from all over the country in the last 12 years trying to convince them, created an ecosystem of merchant bankers and other intermediaries before his passion, conviction and dream began to bear fruit. Today, BSE is the largest and most successful SME Platform in India with 491 companies listed and another 125 companies in the pipeline. These 491 companies have raised an amount of Rs 6,397 crore and have market capitalization of approximately Rs 140,000 crore. Seeing the success of BSE SME even NSE has got into the play. Under Thakur’s leadership, BSE has conducted 2500 physical seminars and 500 webinars across the country to create awareness among SMEs and Start-ups about the benefits of equity funding and listing on the SME and Startup Platforms of BSE.
A new housing finance company being set up by former HDFC executive Satrajit Bhattacharya, former head of M&A at HDFC Ltd, appears to have gathered significant momentum. The venture, news of which was broken here on shortpost.in last December, is likely to be called Weaver, according to reliable sources. The affordable housing finance initiative is learnt to have attracted several high-powered professionals from across domains. “It’s quite a story that Satrajit and his team are weaving together,” said someone in the know of things. “There are talks of acquisitions,” he mentioned. That the venture is eyeing acquisitions as an entry strategy comes as no surprise, given Satrajit’s expertise in M&A. Weavers is looking at crafting together a differentiated national story, and several respected and eminent investment bankers and advisors are understood to be associated with the venture. Several marquee investors too are likely to be a part of the new project it is learnt. Satrajit, an industry veteran, was till recently the senior general manager heading investments and mergers and acquisition for HDFC.
Mithun Kamath, founder of the Bengaluru-based Tantalum Academy and Dr Sanjay Gupta, Vice Chancellor of the Gurugram-based World University of Design have joined hands to provide Soft Skill Curriculum for the students of the World University of Design. Perhaps, a first of its kind initiative in the country, this comprehensive curriculum aims to equip students with a diverse set of skills crucial for success in the professional landscape. Soft skills such as effective communication, teamwork, adaptability, and problem-solving will be integrated into the academic framework, ensuring that graduates from the World University of Design are not only technically proficient but also possess the interpersonal and communication skills demanded by today’s employers. Industry experts view this collaboration as a significant step towards holistic education. Nurturing soft skills is integral to preparing students for the challenges of a rapidly evolving world. Tantalum Academy’s expertise in this area is expected to enrich the educational offerings at World University of Design. Both the institutions are confident that this initiative will have a positive impact on the students when they step onto the real world. Tantalum’s Gamified Learning Programs are recognised globally as a Path Breaking Approach to Competency Development. Programmes for the Higher Education Institutes throw light on various skills development, particularly employability and entrepreneurship.
With India already clinching the ongoing five-test cricket series following a 3:1 victory against England, the cricket enthusiasts are now eagerly awaiting one more edition of the popular IPL (India Premier League). The indefatigable Mahendra Singh Dhoni is expected to lead the five-time champion Chennai Super Kings (CSK) yet one more time! As the expectation of fans rises to a crescendo, CSK will defend the title this time around with a new sponsor! Well, Etihad Airways, the national airline of the United Arab Emirates, is the new official sponsor of CSK. The partnership was unveiled at a special ceremony held in Chennai some time ago. Edition after edition, The India Cements Ltd (ICL) had been an inseparable principal sponsor of CSK for long. The Etihad partnership will come to life across Chennai Super Kings’ events and platforms with Etihad showcased on the back of the Chennai Super Kings’ jersey. That Etihad has replaced The India Cements as the principal sponsor is hard to visualise for many long-time watchers of CSK, which has become an iconic brand. Since Brand CSK commands quite a respect in the marketplace, the CSK management, perhaps, thought it prudent to pitch the principal sponsorship at a premium. It apparently took a lot to convince the management of India Cements, especially its boss N. Srinivasan. It is a win-win for both CSK and The Indian Cements, nevertheless.
Indian toy factories seem to be getting badly affected and many of them are faced with closure because of various issues caused by non-implementation of various rules and guidelines. Members of the Toy Association of India and The All India Toy Manufacturers’ Association feel that both these representative bodies urgently need to present various facts to the government, especially as Prime Minister Narendra Modi himself has focused on the toy industry in his own speech stressing the Aatmanirbhar programme. Officials of the Bureau of Indian Standards (BIS), which is tasked with certifying toys among other items, have also been pleading pre-occupation with other work over the past three years. Some foreign manufacturers have invaded the market by flouting BIS norms and rules under various umbrellas provided to protect the Indian industry. Another issue is the huge, continuous supply of imported non-BIS compliant toys – especially from China – because of leakages in the ports, with many customs officers and, later, BIS/ISI inspectors, willing to look the other way for a consideration. Also, the fact that components attract the same customs duty of 50-60% as readymade toys allows importers to misuse this and take advantage of the lower rates of around 20% levied on other products by declaring consignments as other products. This makes it important to define what a ‘component’ is: an organ inside a toy, like mechanical gearboxes, electric motors, coreless motors, PCBs, chips, LED for toys and the like. The duty on these should not be more than 20%, with strict adherence to the law. Unless these and other issues – including the unhealthy challenges from some e-commerce platforms – are addressed at the earliest, the Indian manufacturer will succumb to the uneven competition.
Most of us know about safety instructions video ennui, even as we buckle up our seat belts and wait for take-off. Whether shown as live mime by bored air hostess, or as a video shot with performing robots, take off videos are pushed into the lowest rung of consciousness, except if you are a first time flier. After Tatas took over they are changing many of Air India’s touchpoint profiles — new livery, new aircraft, a whole new attitude to commercial travel’s competitive ethos. McCann Worldwide’s Prasoon Joshi, music icon Shankar Mahadevan and Bharatbala have conjured up a winner in the new safety instruction video which has gone viral. Ingeniously projecting India’s exotic and energetic dances, the safety instructions are embedded and nuanced through eight dance forms set against ancient temple architecture and verdant landscape. India is unique for its art forms…let alone one classical dance, how many countries can boast of such a variety in which the costumes, jewellery and energetic moves make for such an immersive experience? Air India started its first branding image …a child holding up a frame to watch myriad countries to tempt her wanderlust, this new video uses the same frame to view the dances. Incredible India and its facets are packaged in short vignettes…showcasing tourism promo, safety and exotic art all at once. Mile Sur Mera Tumara, Tho Nrithya Bane Hamaara.
The healthcare and IT employers in the UK and EU are facing critical staff shortages and to address their problems, the UK-based TERN Group, a recruitment platform provides a full-stack solution for sourcing, upskilling, and placing top-tier medical and IT talent from India. Founding members Avinav Nigam and Dr. Anjali Nigam have chalked out plans to tap this huge UK market by hiring doctors from India. In this journey, they have tied up with BAPIO Training Academy, a prominent educational UK headquartered academy with innovative learning modules. TERN and BTA Partnership plans to bring 1,000 senior Indian doctors to the UK by the end of 2025. As part of this partnership, the BTA will offer an exclusive fast-track training programme for Consultant and Registrar level doctors to meet UK requirements and be eligible to work in the UK. TERN’s partnership with BTA and the Indian government’s National Skills Development Council will allow the National Health Services, UK to access thousands of fully trained doctors from India that the UK so desperately needs. Dr Prof Parag Singhal, Chief Executive at the BTA stated that the partnership aims to promote healthcare excellence, foster collaborations, and implement initiatives across both nations. This alliance will open big opportunities for Indian healthcare providers but ironically, even India faces acute shortages of doctors, nurses, and health workers.
TRENDS & VIEWS
Editor’s Note: Big Punch In Small Pack
It is the Third Anniversary of Short Post and as a news media startup launched during the Covid-19 pandemic it certainly feels better than good to find ourselves where we are today. Here, I must cite the unstinted support of our seasoned contributors, all senior editors in the country, who brought a great degree of maturity and sagacity to the Short Post newsroom. But for them, our tagline “Authentic Gossip”, an Oxymoron, would not have matured viably. Our user numbers may be small but our stories have created the desired impact among people who matter — decision makers and influencers. We offer a big punch in a small pack and Short Post with its 225-word stories has been punching above its weight category. Having posted close to 3,000 stories in the last 36 months, Short Post, I feel, is an idea whose time has come.
And this is vindicated by our two marquee advertisers – IDFC FIRST Bank and ICICI Lombard. Both believed in our story and have supported us from Day one. A big thank you to both.
If you look at the media landscape – print, TV and digital — it is a mixed bag. There are job losses as some outfits have closed down while a lucky few were bailed out by large corporate houses. Yes, there is a lot of action in the digital space. However, the entry of corporate houses has raised the question of independence of news media outfits. Sadly, there are just a handful of independent media outfits in the country that are highly respected for their neutrality. At Short Post, our credo is not to take sides, prejudge issues or be biased but, informing readers of behind-the-scenes happenings. In essence, Short Post strives to be a neutral editorial platform — neither anti-establishment nor pro-establishment.
As I said last year, disruptions in the media world are moving at a fast and furious pace. Technology is playing a very big role in how content is generated and consumed. But, we are neither alarmed nor perturbed as it is all a part of the evolution process. What gives us comfort is that AI is unable to create original gossipy content. And that is the news arena where we have achieved a distinction.