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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.
Hard copy in this digital age is passe. Today, all communications are in digital or electronic form save for doctors writing their prescriptions. So it was surprising to see Uday Kotak, Managing Director and CEO of Kotak Mahindra Bank Ltd sending a handwritten resignation letter on September 1 to his chairman Prakash Apte. The 3-pageletter captures the journey of Uday Kotak which started in 1985 with three employees in Mumbai’s Fort area. Today, this successful bank which has over a lakh employees has presence all over India and five other countries. Interestingly, Kotak has tweeted his handwritten letter. Generally, handwritten notes are written to add that personal touch and some CEOs do take that extra effort to send a thank you card or good wishes hand written. This gesture conveys that they care. Ratan Tata is known to do that; he sends handwritten letters especially if it is outside business. He has very good handwriting. This writer has seen some of his handwritten notes. Coming back to Kotak, he has truly built a formidable bank. In his words, “an investment of Rs 10,000 with us in 1985 would be worth around Rs 300 crore today.” All his stakeholders are laughing all the way to the bank.
It is one of the oldest private banks in the country. And, this private lender is over 100 years old. A Nadar community-floated bank, Tamilnad Mercantile Bank (TMB) has consistently found itself hitting the headlines for several years. An internecine quarrel between the promoter groups saw it lose control to the Ruias of the Essar group in mid-90s. But the Ruias faced resistance and had to give it up somewhere along. In came the serial entrepreneur C Sivasankaran. But he too had to retreat. After several twists and turns, TMB went public in September 2022. TMB remains in focus for all the wrong reasons. Sometime ago, the income-tax officials conducted a search at its headquarters in Thoothukudi (formerly Tuticorin). It has returned to focus yet again now. The TMB publicly corrected itself for quite a number of errors in its annual report for 2022-23. At least half-a-dozen discrepancies – some minor and a few major – have crept into the annual report. The private lender, a few days ago, was forced to come out with a corrigendum in a local publication. The corrections related to numbers in some places. In still others, it pertained to the shareholding of the directors. Big or small, a slippage is a slippage. Is there a sense of nonchalance in preparing the annual report? Perhaps, TMB is still adjusting itself to the post IPO situation.
He is a veteran in the field. He had a successful term as the head of a public sector insurance firm. When the government opened up the industry for the private sector, he was among the first to get into the private sector space. But he chose to do differently. Star Health Insurance, the company he floated, was not the usual insurance company that a commoner comes to know. His was a daring initiative. Star Health was the country’s first standalone health insurance. Today, it is a highly successful one. V Jagannathan, who founded Star Health, has completely come out of it. An active person like Jagannathan, who has an abiding interest in Tamil literature, can’t keep idle. If grapevine has to go by, Jagannathan is seriously contemplating his next move. For a veteran in the insurance field like him, there must be plenty of options. Will he float an insurance firm yet again now that the non-compete period is over? Speculations are indeed doing the rounds. A little bird however suggests that he should be looking deeply at unexplored terrain in the insurance space. Is there any? Yes, indeed. There are possibilities beyond the subject of human insurance. Cattle insurance space offers immense scope. In a country like India which strives hard to boost farm economy, cattle insurance is an interesting subject to explore. Why not?
They have been in the news for all wrong reasons. One of their own members dragged them to the court. That member happens to be a female, adding a gender twist to a corporate feud — should we say domestic dispute. More than the legal battle, what has been hurting the group most is the negative publicity that the whole issue was getting them. To be sure, the family members of the Chennai-based $ 5-billion Murugappa Group have shown extraordinary restraint in the face of an avalanche of media reports which featured the versions of Valli Arunachalam, the elder daughter of late MV Murugappan who was the head of Carborundum Universal. Post his demise, Valli and her sisters insisted that they be accommodated in the businesses of the group. Valli even reportedly suggested that they be bought out in the group. All of a sudden on a leisurely Sunday (Aug 20), both sides have agreed to bury the hatchet and settle amicably out-of-court. This could put an immediate end to the washing of dirty linen in public. They have a 90-day window to work out an amicable deal to part ways. Will there be a friend in need for the family to get Valli off their back? Well, interesting times are ahead at Murugappa Group.
Three successful Sarawat businessmen — Ullas K Kamath, former jt managing director of Jyothy Labs (Ujjala) now venture capitalist, Pradeep Pai, managing director, Hangyo Ice Cream and Siddharth Sinkar founder director Global Chamber of Saraswat Entrepreneurs — have joined hands with UK & Co, World Konkani Centre and Global Chamber of Saraswat Entrepreneurs to encourage business ideas from their community. The trio have organized a two-day business conclave at Wonderla Amusement Park & Resort on the outskirts of Bengaluru to meet one-on-one aspiring businessmen from the Saraswat community. The first-of-its-kind Conclave promises to provide instant funds to start-ups. Kamath promises that every bright start-up idea will get a minimum cheque of Rs 5 lakh and the deserving one will get seed capital. The star attraction of the conclave will be the presence of Nandan Nilekani and Mohandas Pai from the Saraswat community to guide, mentor, and fund startups and SMEs. The objective is to promote and encourage young entrepreneurs from the community who will be provoked to become entrepreneurs by choice rather than by default. Well, all attendees will be treated to Hangyo ice cream. The Saraswat Chamber held its first conclave last year in Goa.
Words such as cartel, price fixing and the like are the creation of a bygone era. Today, they have yielded a new term. Cooperative competition is the fresh name of the game. This has embraced all fields. The next edition of the popular IPL (Indian Premier League) is a few months away. Yet, there is an intense debate. Will he or won’t he? As fans were speculating on whether Mahi will come back to play the next edition of IPL, MS Dhoni indicated that he would play IPL one more time for the sake of his adorable fans. CSK owners will want their skipper to stay put. Mumbai Indians (MI) owners, too, must be nursing the same wish for their own enlightened self-interest! Streaming IPL matches for the first time in several languages, Jio Cinema, belonging to MI owners, took the rival Disney Star (Star Sports) head on with zooming viewership during the last IPL season. Looks like Ambanis are wishing that Dhoni plays IPL 2024 edition. The IPL streaming saw Jio Cinema registering record viewership across languages when Dhoni played. Revenue and valuation improved significantly for Jio Cinema. All these augur well for Jio Cinema to get ready for an eventual public float. Co-operative competition appears to be a fair game. Well, it’s cricket after all.
Change is the only constant, it is often said. The change, however, gives a clue or two to the inner dynamics. How else could one view this? Well, the Cement Manufacturers’ Association (CMA) has welcomed a new president in Neeraj Akhoury, who is the Managing director of Shree Cements. Just before his ascension to the top slot, the CMA has managed to ink a wage pact with the unions. The industry has seen eight such national cement wage settlements in the past. A fresh pact was due in April this year when the earlier wage agreement expired. It took a long while to strike a new wage agreement since the unions were insisting that the issue of temporary workers be resolved first before deliberating on a fresh wage pact. Only 18% of the workforce in the cement industry is permanent employees. Obviously, the unions were worried over this increasing trend in the industry. Similar pay for similar jobs is what the unions were demanding irrespective of the permanent or temporary tag attached to a workman. Hopefully, the recent wage accord did manage to find a way out to this thorny issue. The latest industry wage agreement comes months after India Cements went on its own to strike an independent agreement with the unions. Some churning is happening around the industry, it appears.
There was a time when growth was the focus of many enterprises. Soon enough, this has given way to a new mantra. The corporate honcho realised mere growth is of no use. The growth has to be accompanied by profitability. So, the emphasis turned to growth with profitability. As the focus shifts, so much has changed in the global business environment. Not surprisingly, Corporate Social Responsibility (CSR) has become a critical component of the corporate growth process. In fact, CSR has been made mandatory for corporations through a legal requirement. And, companies have to necessarily apportion a specified percentage of its profit process to activities related to CSR. That, perhaps, is the good thing that has happened. For, corporations have a larger responsibility towards society. Well, CSR has now come to occupy a new meaning, at least informally in the corporate world. And, the HR (human resources) team has now begun to identify a section of employees within an organisation for classification as CSR. There are dead wood. There are those about to retire. And, there are those who just come into an organisation through a quota system of recommendatory kind. These people are now termed as “CSR guys”. They are also there but don’t serve. Well, the CSR guys are a cost indeed for corporations!
EaseMyTrip, a leading online platform that offers “end to end” travel solutions is expanding its operations in the UK and Europe markets. Confirming this move is its young co-founder Rikant Pittie. Thirty-four year old Pittie is gearing up to serve the travel needs of high-street customers. EaseMyTrip.com is strategically planning to extend its presence beyond the UK market. It is learnt that this online platform is eyeing the entire European markets. Pittie has also put in place a team to focus on this market, and make necessary preparations and forging partnerships to ensure a successful launch and operation in these new regions. Rikant’s primary objective is to offer highly competitive prices on flights, hotels, and package holidays for his customers in the UK. Additionally, he is also exploring opportunities to expand its offerings and include exclusive non-air products for his customers. The company will soon introduce distinctive products that meet their various requirements and preferences of its customers.
The happenings in the Chennai-headquartered financial services group Shriram have been hitting the headlines ever since the mega restructuring of its ownership some time ago. Post the revamp, Shriram Finance has emerged as the country’s largest retail asset financing non-banking finance company. Shiram has hit the news yet again. It has announced a new partnership with One97 Communication Ltd, the owners of payment app Paytm. Under the arrangement, Paytm will facilitate digital credit for merchant and consumer loans from Shriram Finance. The duo is expecting the partnership to herald a new and wholesome digital loan experience for merchants whose credit needs remain largely un-served. The tie-up with Paytm comes even as Ajay Piramal’s company and TPG India Investments (a private equity player) cashed out of Shriram Finance by selling their holdings of 8.34% and 2.64% respectively, a few days ago. The Piramals may have to cash out its investment in the insurance business of the Shiram group in the wake of their acquiring Dewan Housing Finance Ltd, which too has an insurance arm. It is learnt that the Piramals have already been in discussion with the top leadership of the Shriram group to find an exit option for its insurance investment. In the midst of hectic happenings around the Shriram group, TPG, which has just exited Shriram Finance, is reportedly toying with the idea of investing in Shriram Housing. Well, Shriram appears to be an irresistible conglomerate!
The Navi Mumbai-registered ideaForge Technology Ltd (iFTL) is coming out with its maiden public issue valued at Rs 567 crore. The IPO consists of a fresh issue of Rs 240 crore from the company and an offer for sale of Rs 327 crore by one promoter, five individual shareholders and eight corporate shareholders of the company. The price band is Rs 638-672 for Rs 10 paid-up share. The 2007-registered iFTL was a loss-making company until fiscal 2021. The company could wipe out its accumulated deficit only in fiscal 2022. The company claims to be the pioneer and the pre-eminent market leader in the Indian unmanned aircraft systems market, with a market share of approximately 50% in fiscal 2022. It has one of the industry’s leading product portfolios targeted at civil and defence applications. It has a broad range of products with feature-based differentiation. Sixteen year-old company was not eligible for making an IPO on its own financial performance and has adopted a `technical route’ to float its maiden public issue. If the company’s prospects are promising, why are so many big shareholders offloading their stake and making their cost of residual holding negative? Unstable past performance, unassuming promoter stake and absurd issue pricing make the IPO a risky proposition. For detailed story click https://investlive.net/
Prime Minister Narendra Modi gifted US First Lady Jill Biden a lab grown 7.5 carat green diamond during his recently concluded 3-day state visit to the US . Questions were raised about the nature of the jewel. The diamond is eco-friendly, as eco-diversified resources like solar and wind power were used in its making. It reflects earth-mined diamonds’ chemical and optical properties. The Green Diamond is sculpted with precision and care using cutting edge technology. It emits only 0.028 grams of Carbon per carat and is certified by the Gemological lab, IGI. A diamond maker from Surat described the lab grown green diamond as “an atma nirbhar step that is giving jobs to millions of people all around India.” PM Modi’s US visit seems to have offered some goodies to overseas Indians. In a major boost to software professionals, PM Modi announced that US consulates would be opened in Bengaluru and Ahmedabad. And an Indian consulate would be opened in Seattle. He also conveyed that people may not have to leave the US once their H1 B visa expires. He also had a personal interaction with Sundar Pichai, CEO of Alphabet Inc and Google. He invited Pichai to explore further avenues of collaboration in the domains of Artificial Intelligence; fintech; cybersecurity products & services; as well as mobile device manufacturing in India. PM and Pichai also discussed collaboration between Google and academic institutions in India to promote R&D and skill development.
He came. He stayed. And, he is leaving now. Piramal Enterprises of Ajay Piramal has decided to quit Shriram Finance by selling its entire holding. Whichever way one looks at his original wisdom to get into the Chennai-based Shriram group, it is clear that his game plan has gone horribly wrong somewhere along. Surely, he would have gotten a handsome return on his investment in the Shriram. That need not necessarily crown this businessman as a wiser strategist. He must have seen in Shriram an opportunity to propel his dream of making it to the big league in the field of non-banking finance. Perhaps, he did not bargain for the deep cultural mismatch with the Shriram group. The Shriram group has remained an enigma for many outsiders. Piramal the investor perhaps discovered this only after getting into it. Maybe, he was in a hurry to overhaul Shriram. Luckily, Ajay Piramal’s group company managed to acquire Dewan Housing Finance Corporation Ltd through the Insolvency and Bankruptcy Code route in September 2021. Post-Dewan, Shriram is no attraction for Piramal. One thing is clear, however. The cleaning of the shareholding cobweb at Shriram was in no small measure due to Piramal pressure. For the man who has been successful in the pharma space with spate of takeovers his calculations in the case of Shriram seems to have gone wrong. You win some, you lose some.
The Agra-registered HMA Agro Industries Ltd (HAIL) is coming out with its maiden public issue valued Rs 480 crore (82.05 lakh equity shares at the cap price). The offer is being made through the book-building route with a price band of Rs 555-585 for Rs 10 paid-up share. HAIL, promoted by five brothers, have been in the meat business for more than four decades. HAIL is the flagship company of the group and is a three star export house. HAIL is currently among the largest exporters of frozen buffalo meat products from India and it accounts for more than 10% of India’s total export of frozen buffalo meat. A disturbing aspect of the promoters is they have disassociated themselves from as many as eight companies during the last three years preceding the date of the Red Herring Prospectus. It is family-run business with brothers and children occupying key positions. Promoters hold 100 per cent stake. When compared to the other frozen food players, HAIL’s Return on Net Worth and Return on Capital Employed is quite impressive. In terms of price discounting too, HAIL compares reasonably well with frozen food heavyweights like Venky’s. Nevertheless, a disturbing aspect of HAIL is, the promoters and their relatives would be holding more than 83% of the post-IPO capital of Rs 50 crore at a negative cost which makes the stock vulnerable post lock-in period. By arrangement with https://investlive.net/.
The stock market is in a bull phase with both the benchmark indices — Sensex, Nifty50 – touching new highs every week. The market which is constantly looking for a trigger to scale to new highs seems to have got a big one. According to Mint “Participatory notes are poised for a comeback, this time through the International Financial Services Centre, Gift City, Gujarat, after nearly a decade of being discouraged by Indian regulators. Some leading global banks that currently issue P-Notes from global jurisdictions, such as Singapore, are considering shifting to GIFT City as the special economic zone offers both tax sops and regulatory clarity.” The return of P-Notes will be like music to the ears for the stock market players. According to The Hindu Business Line report “foreign investors had patronised P-Notes for 14 years between 2004 and 2018. At the peak, P-Note linked investments in India stood at around Rs 4-lakh crore. But P-Notes lost their charm after SEBI restricted its use and banned them completely in the derivatives segment.” Currently, India is parched for foreign money in stock markets and allowing P-Notes could act like steroids, experts say. On a net basis, the foreign portfolio investors sold Indian equities worth more than $20 bn in 2022. Tax arbitrage has forced FPIs to move to other jurisdictions.
Irony! Kerala’s Left Front Govt In Talks With Tatas, Adanis To Bail Out Kannur International Airport
It is rare that the fortunes of an airport are tied to an airline. One of the big casualties of Go First’s insolvency is Kerala’s second public-private airport, Kannur International Airport Ltd (KIAL). Set up at a cost of Rs 2500 crore in 2018, the airport which has attracted over 20 million passengers is today defaulting on salaries and all infrastructure payments. In fact, things have turned worse in the last two months, with the airport defaulting on interest payments on borrowings which have now risen to Rs 1200 crore. Go First used to operate 240 flights per month from KIAL to domestic and international destinations. These operations earned it a revenue of Rs 5 crore every month. Also, KIAL was used by Go First as a major parking bay for its fleet of aircraft. The airlines which operate from KIAL today are Air India Express and Indigo, which do only four or five flights per day. The Kerala chief minister Pinarayi Vijayan is worried that the airport could turn out to be another white elephant. It is believed that his government has approached the Tatas and Adanis to bail out KIAL. This is ironic, as the same Pinarayi government had vehemently opposed the privatisation of Trivandrum International to Adani. Critics say that Vijayan will go to any extent to save KIAL, as it is in the backyard of all the top Kerala CPM leaders.
For decades business houses in Tamil Nadu have kept the business out of bounds for women members. That thinking is slowly changing. Now, the corporate world in this Dravidian land is turning gender-agnostic. With the four groups in the larger TVS family quietly going their separate ways legally, the yester-year hurdle (somewhat perceived, though) has disappeared for the womenfolk in their families. Suresh Krishna’s daughters are running the show in Sundram Fasteners. Venu Srinivasan’s daughter is also firmly in the family business. Of course, Mallika Srinivasan is driving the Amalgamation group. The iconic Apollo Hospitals is managed by Pratap Reddy’s daughters. N Srinivasan’s daughter Rupa Gurunath is well entrenched in The India Cements. Cavinkare has seen C K Ranganathan’s daughter too is getting into her father’s business. The Sengol fame Vummidi Bangaru Jewellers has already welcomed a fifth generation (four daughters) into the business. Perhaps the Murugappa group is an exception at the moment where one of the women members of the family –Valli Arunachalam — is engaged in a bitter legal wrangle with others over the denial of her right to get her due in the business of the group. Incidentally, it was the eldest daughter who alerted her father and MD of Pricol Vikram Mohan to the raid by Minda on his company! Well, women power has truly come to party in the family business.
They have immense pride in identifying themselves as manufacturing jewellers. They are the fourth generation entrepreneurs. Their four girl children have also gotten into the business. Founded in 1900, this iconic brand from the city of Chennai has come under the national focus when the Vummidis were traced to be the maker of “Sengol” that the Adeenams had gifted to Pandit Nehru to symbolise the transfer of power from the British. The Modi Sarkar has now installed that “Sengol” near the Speaker’s seat in the new Parliament. The installation of “Sengol” in the new Parliament is a defining moment for the owners of Vummidi Bangaru Jewellers. The “Sengol” installation in its wake has cast on Brand Vummidi an additional responsibility. Yet, it has pushed the brand equity of Vummidi to a new level. It is an ideal time for the owners to spread out into the globe. Steps are already on in this direction. If one were to go by Amarendran Vummidi, Managing Partner, Vummidi Banguru Jewellers (VBJ) will spread wings to the U.S. and set up a store in Dallas very soon. There is a significant presence of the Indian diaspora in that part of America. The American foray will be through a newly-floated Indian subsidiary, Amarendran reveals.
The travel boom set off by the end of the Covid-19 pandemic is seeing action in every mode of transport, from roads to rail and, of course, flights. But while the Indian Railways are using the opportunity to push the new Vande Bharat Expresses with premium facilities and premium prices, a number of small airlines are still trying to find their bearings after the sector nosedived during the pandemic. One entrepreneur who is waiting to take off is Manoj Chacko, former vice-president of the now-defunct Kingfisher Airlines. Chacko, CEO of the recently registered Fly91, from India’s telephone dialling code, has seen it all. Air Deccan, the forerunner in the field that made flying affordable to all, took off well but made the mistake of going in for Airbus aircraft too early. “They should have stuck to the ATR with which they began,” he says. “Introducing a mixed fleet compelled them to compete in a different space.” Kingfisher’s acquisition of Deccan was a “big mistake”, says Chacko, who quit soon after. “Vijay Mallya called me back after three years, but too much water had already flowed under the bridge by then.” Flying to Hubli, Kolhapur and smaller places was not an issue, but the attempt to go international was the killer, he says. His new airline, headquartered in Goa, will operate small 76-seater aircraft from October 2023, with a plan to go national gradually in about five years. “We’ll be playing a test match, and aim to replace short rail journeys of 10 to 12 hours,” he explains, adding: “We won’t get into the ‘cheapest fare’ race: our fares will compare with those for the railways’ 2nd-class AC. We will pay salaries comparable to, say Indigo but keep a low-cost structure with neutral distribution channels and a consumer-friendly booking app.” Happy flying!
Coimbatore is an unlikely venue for a corporate contest. That’s why this one has come as a surprise. The out-of-blue equity buying in Coimbatore-based Pricol by its rival Minda Corporation Ltd a few months ago has stunned the traditional industrial groups in the city, which was once hailed as the Manchester of India. Minda bought a little over 15.7% shares in Pricol for Rs 400 crore. What emboldened Minda to embark on such a hostile raid on a traditional industrial establishment in Tamil Nadu? There could be several reasons for this. The Pricol family structure, perhaps, tempted Minda to have a go at this Coimbatore-based company. The battle is truly on now with the Pricol family doing everything – legally and strategically – to stop the raider on its track. The imbroglio arising out of this hostile takeover has already landed in courts. The Pricol-Minda battle takes one back to former times when non-resident Indians Swraj Paul and Manu Chhabria exploited a change in the rule for NRI investment in Indian companies to raid Escorts and L&T. That they did not eventually succeed is a different matter. But Pauls and Chhabrias have taught a lesson or two to India Inc. If Minda has to be stopped, Pricol owners have to solidify their equity position. The economics of ownership has indeed become dizzy.
A drive-in theatre provides a viewing experience of a relaxed kind. This one perhaps was the first one to come up in the city of Chennai. Located on the ECR (the East Coast Road (ECR), one of the loveliest stretches on the national highway leading up to the Union Territory of Puducherry, this one was a favourite destination for many a cinema lover. For, it gave them the comfort of a relaxing environment and a unique movie-watching chance. Prarthana Drive-in Theatre on the ECR had for long provided young and old alike an entertaining space to unwind even while serving them sumptuously. All good things will have come to an end. So did Prarthana. The owners downed shutters on it sometime in 2021 due to administrative reasons. Founded way back in the early 90s, this drive-in theatre will disappear altogether from ECR. Reports suggest that the land which housed Prarthana has changed hands. A leading construction company in Chennai is believed to have decided to build a high-rise residential complex in the space that measures around 25 acres. Post-Pandemic, there has been a flurry of activities around land acquisition by residential real estate developers. Chennai has already seen many iconic theatres disappear. Prarthana is the latest one to enter this list!
State governments – cutting across party affiliations – jostle with each other to attract global investment. Of late, the competition has become intense among them to woo investors from across the border. Copious flow of capital from the international investing community is often seen as an endorsement of positive policies pursued by them. Tamil Nadu chief minister M K Stalin is gearing up to hold a Global Investors’ Meet (GIM) in January. This will be the first Global Investors Meet for the Stalin-led government. The previous two investor meets took place in 2015 and 2019 when the AIADMK was in power. Chief Minister Stalin has indicated that the upcoming Global Investors’ Meet will play host to investors from over 100 countries. The State machinery is sparing no effort to make the summit an extraordinary showpiece. Expectedly, the DMK government has decided to appoint a global management consultant. The Stalin regime has reportedly roped in Boston Consulting Group to make the upcoming GIM a grand success. Sometime ago, the Tamil Nadu Government issued a Request For Proposal for the ‘Selection of Global Management Consultant’ as a knowledge partner for the Global Investors’ Meet 2024. The knowledge partner will work with the stakeholders across the canvas to effectively articulate the focus fields to the international investing community. Will Boston bring a big boost to the TN GIM?
Numbers can’t just be wished away. Often, they give a clue or two to a decisive interpretation. A cursory reading of the FDI (foreign direct investment) equity inflows into the country has thrown up a revealing fact. In FY21-22, India recorded the highest ever annual FDI inflow of $ 83.57 billion. The Department for Promotion of Industry and Internal Trade (DPIIT) indeed comes out with data on FDI inflows across the districts in the country. A reading of the data for the last 11 quarters clearly suggests that there is a concentration of the FDI flow into a few districts. Surprisingly enough, two districts from Tamil Nadu figure among the top 10 which were consistent in terms of attracting FDI. The two districts are Chennai and Kanchipuram. They managed to attract over Rs. 500 crore FDI in nine out of eleven quarters. These two neighbouring districts in Tamil Nadu house some of the top-notch manufacturing industries. In fact, the Chennai-Kanchipuram stretch is an iconic one. Many big boys such as Hyundai, Saint Gobain and the like dot this stretch. That these two districts have been consistently getting FDI must make the political leadership sit up and ponder. Should it not facilitate an ecosystem that allows for equitable distribution of FDI flow across the state?
The latest news is that Pradeep Bhardwaj, Senior Strategy Director & Head of Industry Standards, Syniverse has been appointed by His Majesty the King as the High Sheriff in the historic rural county of Wiltshire in England. Bhardwaj is the first person of Indian origin, and the first Hindu to be appointed to this high office. Pradeep brings in a huge honour not just for himself but for the entire diaspora from the Indian sub-continent. With the presence of Hindu Chaplain from Leeds Krishnakant Atre at the ceremony Bhardwaj wrote history. The High Sheriff is the Sovereign’s representative in the county for matters of law and order. It is a direct appointment of the Sovereign by Royal Warrant and is the oldest secular Office in the United Kingdom after the Crown, dating back to the Saxon times in the 10th century, more than 1,000 years ago. High Sheriffs play an active role in upholding the principal parts of the Constitution i.e. members of the Royal family when visiting the County. Pradeep is recognised to have brought many firsts to India — first public email service, first public internet service, first Electronic Data Interchange service and setting up mobile and international telecom services in the island nation of Seychelles. Pradeep works very closely with the competitive telecom giants in India.
The $128 billion Tata Group with 29 listed companies, has decided to rejig their real estate business. The new thinking of the management is to focus only on developing commercial properties and move out of housing development space. According to an informed source, Tatas, like other major corporations, are finding it difficult to manage consumer expectations in the residential property space; this business needs an owner driven approach with personal skin in the game to handle the daily challenges as well as managing individual consumer’s expectations. As part of the group’s restructuring process, the Tata group has already brought Tata Projects, Tata Consulting Engineers, Tata Realty and Infrastructure, and Tata Housing under a single umbrella in order to create a larger infrastructure vertical. It has integrated its real estate development entity, Tata Housing Development Company – a 100% subsidiary of Tata Sons – with Tata Realty and Infrastructure. Reportedly, the group is also looking to invest Rs 1200 crores in acquiring land parcels outright and through joint ventures in major cities across the country for commercial development.
Quietly, a lot of things are happening at this once upon a time iconic industrial conglomerate from the city of Chennai. A new management is already in place. And it is silently working to recapture the old image of this highly respected brand. For sure, the D C Kothari-promoted Kothari Industrial Corporation Ltd (KICL) isn’t going to vacate the fertiliser field though it has chosen to palm off its loss-making SSP (single super phosphate) plant at Ennore near Chennai on a slump sale basis. No doubt that would help the KICL management clean up debt. The sale move is a sensible one. But the new management under the leadership of Dr J Rafiq Ahmed is drawing up a different game plan for its fertiliser business. Well, the KICL is toying with the idea of establishing a new Single Super Phosphate (SSP) manufacturing unit at Thoothukudi, a port city in southern Tamil Nadu. The facility – whose contours are at drawing boards – however, will have the latest technology. It will come up on government-leased land. Ever since Ahmed took charge of the affairs of KICL, he has been on a mission mode. Under his stewardship KICL has made a foray into drone production. Also, the D C Kothari group is also now in the process of setting up Phoenix Kothari Footwear Park Tamil Nadu at Eraiyur in Perambalur district. Well, Kothari brand still commands huge pull.
FSN E-Commerce Ventures, popularly known by its listed name Nykaa, promoted by the high profile banker couple Falguni and Sanjay Nayar tapped the capital market in October 2021 with a public issue of Rs 5,352 cr. More than 475 lakh shares of Re 1 each were offered at an exorbitant price of Rs 1125 per share. The company which moved into black on the eve of IPO, saw its issue subscribed more than 45 times! Retail investors’ portion attracted around 11 times subscription, HNIs 111 times and QIBs 92 times. Thus, the Rs 5,352 cr issue attracted bidding for a whopping amount of Rs 244,495 cr!. Effectively, Nykaa, a decade old and yet to earn profits, asked for a market cap of Rs 53, 200 cr while highly rated MNCs like P&G and Colgate commanded a lesser market cap of about Rs 47,000 cr and Rs 42,500 cr respectively. The public float was a grand success. However, the gullible public did not realize that shares allotted to Anchor investors were locked-in only for 30 days. Nykaa listed on November 10, 2021 at a premium of 78% over the offer price and scaled Rs 2248 yielding 99.8% return. At the end of the one year lock-in period, the stock price went below the IPO rate inflicting 13% capital loss on the IPO investors. Sensing deep trouble, the management quickly declared a bumper 5 for 1 bonus issue which could temporarily arrest the price slide. Even though the top line is attractively growing, the company’s current bottom line (annualized) gives an abysmal EPS of 9 paise on Re 1 paid-up share. By arrangement with https://investlive.net.
The current push from both the Indian and UK governments to expand their engagement on defence, aerospace and homeland security has seen an intensity of engagement between the two countries that is unprecedented since Independence. A recent meeting with the UK’s national security advisor, on the sidelines of a meeting in London for cooperation in the defence industry, showed the ‘huge’ respect India now commands from the world. The delegation met three UK ministers including the minister for defence procurement, besides the national security advisor and many senior bureaucrats. Says a ‘happy and proud’ Shekhar Sardessai, Executive Vice Chairman & Managing Director of the Goa-based Kineco Ltd and Kineco Kaman Composites, who was part of the delegation: “I have seen how we were treated 10 years back as an insignificant country. The same people are now keen to woo India as a partner. All credit to what our government has done in the past few years to build a formidable position for our country.” Other business leaders agree. “Great!” says Senator Dr PKC Bose, Vice Chairman & Managing Director of the Bengaluru-based Enercon Windenergy, a subsidiary of Germany’s Enercon Group. “It’s India’s time.”
Environmental issues continue to dog the upcoming Navi Mumbai International Airport being built by Adani Airports. As the project secures extension of Environmental Clearance to allow Adani to complete the project, green groups are up in arms against what they called misleading Environmental Impact Assessment (EIA) report submitted by the company. The EIA quotes exhaustively the research report by the BNHS which called for protecting and conserving at least five major wetlands as migratory bird destinations. The State-government owned city planner CIDCO would take steps to implement these suggestions. Moreover, the controversial golf course planned by CIDCO filling two wetlands – NRI and TS Chanakya – was cancelled, the EIA said. But the ground reality is totally contradictory as the wetlands continue to be under attack, green groups Save Navi Mumbai Environment and NatConnect Foundation have complained to the Union Ministry of Environment, Forest and Climate Control. One wetland at Bhendkhal, has been completely buried, another one at Belpada majorly landfilled and a third – Panje – often goes dry as the intertidal water flow to it is blocked by “vested interests”, the greens said. The golf course plan is still alive as the project proponent has recently obtained Coastal Regulation Zone clearance. The tragic part is that CIDCO refuses to accept the existence of the wetlands identified by BNHS as well as the State Mangrove Cell, Nandakumar Pawar of NGO Sagar Shakti said.
Generally Rs 10 paid-up stock that carries a dividend of 1725% (Rs 172.50 per share) would have commanded a price of not less than Rs 2000. Taparia Tools, which earned more than Rs 200 per share from its operations and distributed Rs 172.50 as dividend for fiscal 2022, was quoted on March 20, 2023 at just Rs 10.50. At this price the dividend yield works out to 1643%! The company has now proposed a first interim dividend of 775% as against 700% first interim last year which indicates that in all probability current year’s yield may shoot up beyond 1700%! The Nasik-based Taparia Tools Ltd has been manufacturing hand tools in technical collaboration with a Swedish company since 1969. Its financials have been very impressive with topline growing from Rs 475 cr in FY20 to Rs 670 cr in FY22. In FY23 it is expected to touch Rs 750 cr. Likewise net profit more than doubled from Rs 30 cr to Rs 65 cr during the same period and expected to exceed Rs 75 cr in FY23. Why is the stock quoting so low? It has a small equity base of Rs 3.04 cr with promoters holding 69.73%, directors & relatives 13.72%, two corporate bodies 10.56% and 229 shareholders 3.84%. In the last 21 years, TTL was traded only on 39 days. In the first three months of 2023, the stock has been traded for 5 days. By arrangement with https://investlive.net/.
The USI Atma Nirbhar Bharat Initiative (USI-ANBI) has given new meaning has been given to the work of the United Service Institution (USI) of India in furtherance of its avowed objective of “furtherance of knowledge in the art, science and literature in the interest of national security”. Such initiatives bring defence industry players in contact with the Services departments dealing with procurement and indigenisation. In July 2022, for example, it had a panel discussion (PD) with Aditya Birla Securities Ltd on the impact of the geopolitical situation on global and India’s financial markets, followed by one with Microsoft on cybersecurity, where the apex cybersecurity officials were brought in. Start-ups are allowed to register and asked to join when there is a round table discussion (RTD), seminar or closed-door meeting on the issue relevant to them. USI of India is a strategic think tank with a wealth of retired officials from Services, IAS, IPS and IFS, explains Major General Dr Pawan Anand, AVSM (Retd), Distinguished Fellow and Head of USI-ANBI. “It is a great brand!” he says. “We are now planning on foreign industry offerings too at our RTDs.” Obviously, India’s role on the global stage continues to grow in its presidency of the G-20 which it took over in December last year.
Sometime ago, this one did an out-of-the box innovation to reward long-time loyalist-employees. This Chennai-based high-end product engineering company distributed 100 Maruti cars to staffers who have served the company for over five years. Now, it has come out with yet another innovative idea. With tech giants such as Google, Zoom and the like dishing out pink slips, Ideas2IT has decided to play Good Samaritan. It has now launched perhaps the country’s first proprietary up-skilling program. The idea is to help tech professionals bounce back from the adversity of recession and layoffs! “Pledge2Propel”, a career enhancement initiative, is primarily intended to help tech professionals affected by the economic slowdown and layoffs. This initiative aims to provide all the support they need to re-group and pursue new opportunities by means of up-skilling or venturing into entrepreneurship while prioritizing their mental health. To be sure, this initiative does not promise or guarantee a job. Along with IdeaRX, a HealthTech start-up, Ideas2IT hopes to help the laid-off professionals to navigate the psychological and professional challenges and guide them to reach a secure terrain. “With this association, we intend to transform the lives of many tech professionals through empathy, inspiration and empowerment,” says Gayathri, CEO of Ideas2IT. This non-profit program is available for free to all affected tech professionals across the globe. A twice-blessed initiative, indeed.
Laissez-faire is a policy of minimum governmental interference in the economic affairs of individuals and society. This freedom is the fulcrum around the real competitive world. Yet, we have a Competitive Commission. This does not, however, prevent competitive cooperation in the business world. If proof was required, it is available in plenty in the Indian business world. Every December, car makers – one by one – come out with announcements of impending price hikes. One can easily sense a collective design in their individual action. This kind of cooperative competition has now spread to new-age entities. Online food ordering and delivery platforms Zomato and Swiggy are highly popular in India. No doubt, they are in a competing space. These new-age organizations often give a go by to the much acclaimed dictum `profitable growth’. Faced with the reality, Zomato and Swiggy appear to have struck an informal cooperation. So much so, you can now see a Zomato boy delivering an order placed with Swiggy! This kind of order diversion appears to be quite usual these days. None would like to lose out on business due to lack of network. Indeed, it is a sensible way to optimize each other’s network. Of course, they share their commission. Well, the survival instinct is at work indeed.
From a peak of Rs 24.33 tn (Rs 2,433,000 cr) last year Adani group’s market capitalization has already nose-dived more than 70% to Rs 7.16 tn (Rs 716,000 cr). Is this the end of the slide, or is it going to fall further? A close study of the Adani group stocks reveals that, in the first decade during which the group had just one listed company, Adani’s P/E multiples were in single digit which was far below the market average. In the second decade, when the group started unlocking the value of its closely-held companies, the discounting vastly improved. In the third decade, when the count of the group’s listed entities increased from 3 to 10, the P/E multiples shot up to three digits which were many times more than the market average. The current slide has corrected the group’s P/E from 147X to 43X. However, this is still far higher than the current market composite P/E of 25X. At the current market composite P/E, the Adani group’s market cap should be about Rs 4.2 tn (Rs 420,000 cr). In other words, the group’s market cap may possibly contract another 40% (about Rs 300,000 cr) under the present circumstances. By arrangement with https://investlive.net/.
The Bengaluru-based FreshToHome now has the financial backing of Amazon. Through its India-focused Smbhav Venture Fund, Amazon has made $104 mn series D funding. The 2015 incubated FreshToHome sells fresh fish and meat to consumers in South Asia and Middle East. FreshToHome would be a right fit for Amazon, which of late has expanded to the grocery and fresh category leveraging on its logistics infrastructure in South Asia. During its first phase of funding two years back, FreshToHome, raised $121 mn from Investment of Corporation of Dubai, IronPillar, Ascent Capital and US Government’s DFC. FreshToHome is one of the largest players in the $ 100 billion Indian fish and meat market. The size of the market indicates that India is not just a vegetarian country. FreshToHome plans to change the existing market set-up, run on age-old systems. The company proposes to bring in better efficiency by first streamlining the sourcing infrastructure of meat and fish. This will be backed by improved quality of produce and delivery time by using its own processing plants and vast supply chain network. “Customers ordering fish from Delhi to Dubai on a Monday, get their purchases delivered the latest by the next day,” says Shan Kadavil, co-founder and CEO of FreshToHome. The company today serves over 4,000 fishers and farmers and millions of customers in over 160 cities in India and UAE.
Air India’s mega aircraft order is expected to spell doom for the air-transit business from India. Also, the major beneficiaries till date, Emirates, Qatar and Etihad Airways will have to rework their strategies like Singapore Airlines, British Airways and Gulf Air did when the Gulf airlines took over the India transit business. Air India’s order for 40 Airbus A350s, 20 Boeing 787s and 10 Boeing 777 -9s wide-bodied aircraft will see it offering multiple daily direct flights to all premium destinations in USA, Europe and Canada. Air India plans to have daily flights from Mumbai, Delhi and Bengaluru to major U.S. cities, EU capitals, Australia and Canada to start with. The Gulf-based airlines have been fleecing Indian travellers transiting through Dubai, Doha and Abu Dhabi, to USA and Europe with huge fares during the peak season. The trips are often camouflaged with free stopovers, lodging and site-seeing trips. Air India’s planned direct flights to USA and Europe should see the fares drop by as much as 30% to 40%. And more importantly, the flying time saved would be four to five hours plus stop over time which is a minimum of two hours. Gulf airlines will now have to rework their India strategies by cutting fares and reducing the number of connections. Some of them may look to tie-up/acquire one of the Indian domestic carriers. As things stand, Qatar Airways was in talks with Indigo and SpiceJet. Experts feel the weaker ones like SpiceJet and Go First could be the first to be approached.
Its financials have been strong all the while. Yet, this over 100-year-old private bank has consistently hit the headlines for all wrong reasons. After many twists and turns caused by internecine quarrels among promoter groups belonging to the Nadar community, Tamilnad Mercantile Bank (TMB) finally made its maiden foray into the capital market on September 5 last year. A new Managing Director S Krishnan took over the bank a day prior to its IPO. Krishnan has his job cut out. Having come out with good Q3 numbers – first quarter results since it went public in September last, Krishnan is on a mission to take TMB pan-India and make it a much more efficient bank to compete effectively with its peers in the industry. He is now toying with the idea of going for a business process re-engineering (BPR). TMB is looking to engage the services of an external consultant to come out with a detailed report on BPR, and recommend solutions for the bank on the way forward. The BPR initiative is intended to bring about a rethinking in the way TMB does its work. The objective is simple: to improve customer service, cut operational cost and become efficient. The BPR could focus on the analysis and design of workflows and business processes within the organisation. It’s transition time at TMB!
Time was when Chennai airport was just workhorse functional, fliers comparing it to the glittering breathtaking Changi, and feeling second class. Frequent construction for cosmetic renovation was always knocking the fliers’ rush. Suddenly this not so glamorous poor cousin airport has emerged as an attractive, talked about airport. Parking bays, arrival and departure bays, all spruced up. But it is the mint new AeroHub adjoining the airport with an umbilical aero bridge that is now raved about. Even before the mall has come up, PVR cinemas have thrown open a razzle dazzle multiplex of 5 screens to showcase favourite films, all on the fly. Delayed flights, overnight transfers, waiting for technical glitch to resume your flight will turn into a fun experience as you walk across the bridge, drink, dine and dawdle over the latest film. The foyer decor, seating for 1150 people, Dolby sound , reclining seats, ample legroom, crystal clear projection on 5 screens , with Audi2 and Audi4 offering luxe viewing will definitely take the pain out of flying . Not just fliers, but outsiders are also welcome to come, drop a load of money on the peripheral attractions. Tamilians may appear stodgy and serious…but finally what they present in terms of entertainment and deluxe experience reminds one of Rajini’s dialogues, ”Naan lateaa vandalum latestaa varuven “ (I may be late, but I am the latest).
India is a cricket-crazy country. The IPL (Indian Premier League), which followed immediately after M S Dhoni-led Men in Blue winning the World Cup in Mumbai, has now become one of the largest annual sporting events in the country. From this year we will have a women’s premier league as well. The cricket mania is now really expanding. Industry body CII is now gearing up to hold Indian Corporate Cricket League (ICCL). It is a national-level initiative of the industry body. This will be a pan-India exercise, done at the behest of the Sports Ministry. It will happen across India in each state. At state-level, it will have a round-robin format. The Tennis Ball cricket will have T-10 matches at state-level in round-robin format. Post-qualifying round, it will take the T-20 format. The CII is reported to have commissioned the services of an event management organization, which will be entrusted with the job of providing end-to-end logistic and related support facilities for the conduct of the ICCL across the country. CII is hoping for a participation of 25 teams in each state in the round-robin level. If grapevine has to go by, the Union Sports Ministry is reportedly keen that this kind of a pan-India corporate initiative is spread to other sports such as kabbadi and the likes. Sports at long lost is given its importance. That’s a welcome sign, indeed.
This seems to be the global trend — banning the manufacture, sale and use of single-use plastic items like plates, cups, straws, trays and polystyrene. In India too it has been banned but some states like Maharashtra under pressure from the business fraternity have relaxed it. The latest news comes from New York. The extra but convenient plastic cutlery, chopsticks and sauce packets that restaurants throw in your takeout bag may soon disappear for good as New York City’s City Council has just passed a bill that would bar eateries and food delivery services from providing this accouterment unless specifically requested. Those businesses that keep including these items regularly, would be subject to civil penalties but warnings, instead of a monetary penalty, would be given for any violation occurring before July 1, 2024. The hope is to cut down on single-use plastic that can’t be recycled and ends up in landfills and take away the financial burden of purchasing these items from small businesses. Every year, more than 320 million tons of plastic are consumed globally, with 95% of plastic only used once and 14% for recycling. By arrangement with tfninternational.com.
Kashmir valley is witnessing heavy snowfall as a result all flights to and from Srinagar airport have been cancelled. Even the national highway has been shut. As per the latest reports, heavy snowfall has been witnessed across the valley while rain has been lashing the Jammu division. Reportedly, 5 inch snow had accumulated in Srinagar city till Monday morning, whereas other popular tourist places, like Gulmarg, Sonamarg, Pahalgam received more than 1-3 ft of fresh snowfall. Realising the problems faced by tourists, the Directorate General of Civil Aviation (DGCA) has amended its Civil Aviation Requirement (CAR) rules on facilities to be provided by airlines to passengers due to cancellation of flights, denied boarding, and delays in flights. It added that the amendment will allow passengers, who are downgraded involuntarily and are carried in a class lower than that for which the ticket he purchased, to get reimbursements online. The DGCA proposed that airlines need to refund the full value of such tickets, including taxes, and that the said passenger will be flown free of cost in the next available class. The reimbursement will differ between 30-75% in case of international ticket downgrade. By arrangement with tfninternational.com.
A social economic forum, this one was founded in 2017. This triple B forum is headquartered in Mysore, it has 19 chapters and claims to have a membership of over a thousand spread across the Southern states of India. They operated under a trust model. The trust acts as ‘head and shoulder’ for all chapters. It is to assist, support and monitor their engagements. The trust is intended to bring under a common fold all brahmin business entrepreneurs. The objective is to mutually share and refer businesses among the members. The Forum for Business By Brahmins – BBB Trust is a community-based entity. This is not a business body by itself, though. It will work for business promotion and otherwise wellness of each individual in each chapter and community at large. Growing together is the chosen mantra. The objective is to build a strong global platform which will create growth opportunities for businessmen in the community. Also, it is intended to work for the improvement of the quality of life of the people in the community The BBB Forum has three chapters in Chennai. Well, it is planning to host its two-day annual conference in Chennai on February 4. The conference is expected to facilitate information sharing, relationship building, business leads and the like. A unity mantra to grow, it appears.
They say time flies. How true! Today is our #SecondAnniversary. Two years back at the height of Covid-19 Pandemic when lockdown was the way of life we took a leap of faith and launched Short Post (Jan 28, 2021), the first-of-its-kind website in the country that focuses on Authentic Gossip. The Oxymoron is deliberate. Well, the response has been quite encouraging. That’s what has kept us going. Till date we have posted close to 2000 stories in the areas of Politics, Business, Entertainment and Sports. Each insightful story of around 225 words has been contributed by Senior Editors. There is a sense of satisfaction of creating a new segment in the market – authentic gossip — and in the process creating a brand (in a limited sense), creating demand (readers) and creating supply (writers). Well known advertisers — IDFC FIRST Bank, ICICI Lombard – supported us. And that really boosted our confidence. Thank you!
So here we are raring to go. But, when I look at the media landscape the disruption is indeed fast and furious. Technology is playing a very big role in how content will be consumed. In the past, we have seen how social media has disrupted the media world. Now, everybody is saying the same thing about ChatGPT. It has reached 1 million users in five days. Its scorching pace of growth is indeed frightening and will disrupt the media industry big time. My limited argument is can it do investigative stories, write gossip items using the digital world ecosystem. Unlikely. Clearly, the original content has to be created first — only then can ChatGPT do the magic. That’s what we promise to do – focus on original content.
Before I sign off, I am reminded of an old advertisement of the early sixties: “Avis is only No.2 in rent a cars. So we try harder”. Likewise I can say, we are two years old and we are trying even harder to be relevant to you readers.
There is a huge potential to increase bilateral investments between Japan and India, says Tomio Isogai, director of the Kansai Japan-India Cultural Society. Agreeing with the Japanese government-run Japan External Trade Organization (JETRO) on the crying need to increase the number of SMEs in India. Quoting JETRO India’s Chief Director General Takashi Suzuki, he says this is definitely necessary because small and medium enterprises (SMEs) here account for only one in five of the over 1400 Japanese companies that operate in India. The corresponding figure in China, ASEAN and Bangladesh is between 40% and 60%. This “abysmally low” presence of Japanese companies here, Suzuki has said, is “a very unique element” of the business relationship between the two countries. Indian companies in the fields of healthcare, elderly care and social care related services have major opportunities in Japan, while green hydrogen and the renewable energy sector also offer big scope. Isogai, a veteran in both Japan and India, spent 37 years in Japan’s Sharp Corporation and is a former managing director of the erstwhile Kalyani Sharp in Pune. He is currently a freelance advisor to the Hyderabad Management Association. Companies in both countries have already unveiled manufacturing plans, they point out.
After a two-year Covid-induced hiatus, the Leather Fashion Show is back. Chennai is gearing up to host the India International Leather Fair next week, and the Fashion Show, as was in the past, will form a crucial component of this. This time around, the show will showcase products that are made out of recycled leather. For the first time perhaps, lifestyle car brands such as Porsche and BMW have chosen to mark their presence at the Leather Fashion Show. Such shows are often intended to woo high net worth customers. These high net worth people are the potential buyers of fancy high-end cars. Well, Porsche and BMW are finding the Fashion Show a useful platform to touch-base with their potential clients. It is unusual for these esoteric automobile brands to put their cars in a public area. A Fashion Show of international standard followed by dinner at a high-end venue like the ITC Grand Chola is an opportunity that these car majors aren’t willing to miss. They are more than happy to display their high-end cars in the Fashion Show. The association of such global car makers surely will add credence to the profile of the leather industry in India. And, the presence of various Miss India title-holders will add further spice to the upcoming Leather Fashion Show in Chennai.
Uttar Pradesh government’s top level bureaucrats led by the state’s Finance Minister & Minister for Parliamentary Affairs, Suresh Kumar Khanna are visiting the United Kingdom to woo global investors. On January 28 Jan, Dr Shashank Vikram, IFS who is the Consul General of India in Birmingham will be hosting “a high profile” gathering of investors to meet the minister and top officials. Birmingham which coincidentally is recognised as the “Engine” of UK economy inspired by James Watt will play host to strengthen ties between the UK and Uttar Pradesh. UP minister Khanna’s visit is primarily to woo investors for the UP’s Global Investors Summit to be held shortly in his state. It is learnt that Khanna and his core team along with Dr Vikram have identified a roadmap and strategies to be followed to enhance trade and economic ties between the UK and UP. Khanna is ambitious with his plans as UP’s vision is to become a $1 trillion economy. Towards this objective the state government has provided a single window clearance for 25 sectors it has opened up for the global investors. With the BJP government elected for the second time in UP, there is political stability. But, the moot point will these roadshows in the UK following the USA earlier, encourage global entrepreneurs to UP?
The Gulf-incubated GEMS Education, run by second generation entrepreneur, Sunny Varkey, is on the lookout for a long term partner, failing which it will go for an IPO. The $ 6 billion valued GEMS, is the largest non-Government operator of private kindergarten-to-grade-12 schools in the world, teaching 140,000 students from 175 countries. Morgan Stanley and Goldman Sachs have been given the mandate to find a long term partner for GEMS by mid-2023. The hunt for a partner follows private equity firm CVC’s decision to exit its over 30% stake in the world’s largest private school operator. According to informed sources, ADQ (Abu Dhabi Developmental Holding Co) and real estate developer Alder have shown interest in GEMS. Sunny Varkey, who started in the healthcare business, later moved to run GEMS started by his parents. Varkey in a recent interview stated that he has no plans to relinquish majority stake in the company. In fact, he stated that he would prefer long term partners like sovereign wealth funds, infrastructure funds or even pension funds. And if the current exercise to find a long term partner fails, then the group will have no option but to go in for an IPO.
The extended western suburbs of Mumbai – the city’s most populous stretch — gets fully covered by the Metro network from January 20 onwards. Providing seamless connectivity on an entirely elevated network of 35 km of lines with 30 platforms at the cost of Rs 13,000 crore, has been presented as a solution against the congested Western Express Highway and its parallel running New Link Road. Completing the project was challenging, says SVR Srinivas, metropolitan commissioner of the Mumbai Metropolitan Region Development Authority (MMRDA), the city’s planning body, as it meant carrying out major part of the works at night due to heavy traffic congestion. There were challenges in air as well — the Andheri (W) station had to be raised to 22 metres above ground to cross over the existing Metro line 1 lines beneath. This line is estimated to see a footfall of 3-4 lakhs passengers daily soon. This is the second network that is fully operational; the first Ghatkopar-Versova line is already providing much needed relief with its East-West connectivity. While the metro network huffed and chuffed in its initial stages thanks to opposition from residents and environmentalists, it has picked up much speed since then to move towards its target of achieving 337 km with 200 stations by 2030 to service 7 lakhs passengers per day.
Tamil Nadu chief minister M K Stalin wants to fulfil the DMK’s election manifesto promises and prepare the ground for 2024 Lok Sabha elections. More significantly, he needs to project his intention to create and save jobs. The shutdown of Ford Maraimalai Nagar plant remains a vexing issue. It had accumulated losses of over $2 bn. Recently, Tata Group’s Chairman N Chandrasekaran along with Tata Motors Executive Director Girish Wagh visited Stalin’s camp office. Also part of the meeting were Tamil Nadu chief secretary, ministers Thangam Thennarasu and Udhayanidhi Stalin. It was a courtesy call but it is clear that the Tamil Nadu government has been feverishly looking for a new owner to take over Ford Chennai plant. It may be recalled that Tatas have already bought over Ford’s Sanand plant in Gujarat. So buying Ford’s Maraimalai Nagar plant seems a logical conclusion. Both these plants can crank up Tata’s EV capacity. Currently, with significant bookings for Nexon EV, and Tiago. Tatas are able to meet only 50 % of the demand. The Ford Chennai plant has a number of hidden assets — its erstwhile vendor team supplied 40% of their captive production, the trained workforce can be retrained and logistics support of the Port is one of the biggest advantages. Tatas have taken a lead in EV, and if this acquisition happens then Chennai could emerge as an EV hub.
On the heels of the Indian Information & Broadcasting Ministry setting up a Task Force for the promotion of animation, visual effects, gaming and comics (AVGC), the Singapore-based Gamepay has made plans for a launch in this country by the end of 2023. “We see a big opportunity in India so that gamers can be rewarded and incentivised for the time they play games,” says Gamepay’s founder-director Daniel Santos. “We also see gaming as one of the fastest-growing sectors and we want to make an impact to Indian GDP by playing an active role in its growth.” Rolling out the project involves establishing a chain of investors and game partners, whom he has invited through a series of social-media posts: “Anyone interested in gaming and tech, pls message me,” says the entrepreneur, originally a Brazilian who had earlier floated another game, Chickey Chik, on his platform. Gamepay, described as “the ultimate gaming destination to incentivise gamers”, is an avenue for gamers to vibe and create a community across various game genres, as well as a platform for listing and promoting games. With more than three billion people worldwide spending time playing online games and Web 3 gaming activity accounting for almost 1.3 million unique active wallets (UAWs), Santos is in a win-win situation, which he is offering to share with his Indian partners, making money from subscriptions, advertisements, and transaction and service fees.
The Lamborghini group is looking at opportunities to invest in Kerala in the areas of luxury flats, apartment complexes and boutique hotels. Tonino Lamborghini, son of the legendary Italian businessman, Ferruccio Lamborghini, is currently in Kerala enjoying the backwaters, cuisines and ayurvedic spas. He also found time to meet the Kerala Industries Minister P Rajeev to identify areas of investment and tax holidays. The group is also interested in partnering with local businesses and also exploring manufacturing opportunities for some of its products. Despite hiving off its famous luxury car business to the Volkswagen group, the Lamborghini family still retains the brand name. The Lamborghini brand has under its belt a line of luxury products like watches, mobile phones, sunglasses, perfumes, bags, clothings and boutique hotels. The group is also looking at partnering with Indian companies to help their brands enter the worldwide market. Tonino also expressed a desire to set up an electric car manufacturing unit. To start off, he felt golf carts would be an ideal area to enter. Tonino is visiting Kerala with his partner, Angela Kriegar and Usman Rehman, MD of Times World group and brand ambassador of the Lamborghini brand in Dubai.
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.