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Good news for footwear enthusiasts in Chennai. The city will host the first Kickers store. Following a 30-year licensing deal with Royer Group of France, Kothari Industrial Corporation Ltd (KICL) is gearing up to set up its maiden Kickers store in Chennai tomorrow. The timing could not have been better for KICL, which has come under a new owner in Rafiq Ahmed and got relisted on the bourses. The opening of the Kickers store in Chennai comes within days of a significant development in the annals of KICL. A Qatar company belonging to the Royal family has just been cleared by the board of KICL to pick up a 10% stake in the Chennai company. Qatar-based F J Global Investment is owned by Falah Jassim J.M.AL-Thani, who is a director of Doha Bank and was also the founder of Qatar Airways. He was also a minister in the Qatar Government. This is a significant boost to KICL under Rafiq Ahmend, who has gone on a mission to revive the KICL and bring the iconic Kothari brand back to yester-year glory. The investment from a company owned by Qatar Royal family is seen positively by industry circles in Tamil Nadu, which is going the extra mile to woo foreign investment into the state. Significantly enough, KICL has also embarked on a consolidation move with the board approving a proposal to buy 30% stake held by Rafiq Ahmed in Phoenix Kothari Footwear Ltd, a joint venture that is setting up a non-leather footwear park in backward Perambalur district of Tamil Nadu. Well, things appear to fall in place for KICL as it seeks to make a strong comeback and regain its past glory.
It was something that the Congress couldn’t stomach easily. Perhaps the party was surprised that the Raj Kapoor family had chosen to interact with PM Modi. A day after the social media and TV channels were awash with PM Modi’s interaction with members of the Kapoor family, a very senior Congress leader ventured to put out a snarky social media post questioning the meeting. For some odd reason he completely chose to ignore the context of the meeting. “We have been asking PM Modi to visit Manipur. But he has instead found time to meet with Kareena Kapoor.” Soon good sense prevailed and he deleted his crude post. Guess he must have realised that his post was outright offensive. The Kapoor family had called on PM Modi on December 10 to invite him to the legendary actor-filmmaker’s Film Festival. The festival is to commemorate Raj Kapoor’s 100th birth anniversary, an iconic figure in Indian cinema who passed away in 1988. Ten Raj Kapoor films are going to be showcased across 40 cities in 135 cinemas .The Kapoor family, including actors Ranbir Kapoor, Riddhima Kapoor Sahni, Neetu Kapoor, Kareena Kapoor Khan, Alia Bhat and Saif Ali Khan met the PM. “This is a special day for us. We enjoyed the conversation. He spoke to us in a friendly manner. He made all of us feel very comfortable,” said actor Ranbir Kapoor. His cousin actor Kareena Kapoor Khan said that it was her dream to sit next to PM Modi and talk to him. “His energy is so positive and he is truly a global leader.” PM Modi inquired about the third generation of Kapoors — and autographed for Kareena’s children Tim and Jeh. December 14 marks the 100th birth anniversary of Raj Kapoor.
It couldn’t have come at a more inappropriate time than this. The day when the entire national media was riveted on the Parliament debates commemorating 75 years of Constitution of India and newly-elected Wayanad MP Priyanka Vadra Gandhi was making her debut speech in the House. For some odd reason the Telangana Police chose to arrest Telugu star Allu Arjun, protagonist in the Rs 1000-crore plus grosser Pushpa 2: The Rule. He was arrested in connection with the stampede incident at Hyderabad’s Sandhya Theatre, which resulted in the death of a woman. On December 4, a massive crowd gathered at Sandhya Theatre to see Allu Arjun, resulting in a tragic stampede. Revathi, a 39-year-old woman, died due to asphyxiation, and her 8-year-old son was hospitalised. While granting interim bail to Allu Arjun, the Telangana High Court affirmed Arjun’s right to life and liberty, stating that he cannot be deprived of these fundamental rights. While leaders cutting across the political spectrum came out in support of the actor, Telangana BJP leader and Union Minister Bandi Sanjay described the arrest of a National Award-winning actor as having been done to steal the spotlight. “Drama over delivery, diversion over governance — that’s the Telangana Congress government for you!” Arjun’s uncle and Andhra deputy CM Pawan Kalyan rushed to rally support for him. In the meanwhile, it will be interesting to see how Priyanka Vadra herself responds to the ham-handed manner CM Revanth Reddy handled the situation. He had after all managed to divert attention from her debut performance in the Lok Sabha to an avoidable law & order incident in Hyderabad.
To ensure the social welfare schemes reach the intended target group, West Bengal chief West Bengal chief minister Mamata Banerjee has rolled out a robust mechanism to ensure the effective implementation of socio-welfare schemes. This initiative aims to hold government officials accountable for supervising these projects and addressing inefficiencies that have marred progress in recent years. The state finance ministry has issued a notification, followed by the establishment of a dedicated help desk at Navanna to oversee information flow from block and sub-division levels. This initiative, aimed at curbing inefficiency and fraud, will require officials to physically visit project sites instead of submitting progress reports from office desks. The app will feature automatic geo-tagging, ensuring accurate location tracking of officials during field visits. During multiple administrative meetings chaired by CM, officials repeatedly failed to provide accurate updates on the status of ongoing schemes. This incomplete information has not only slowed down critical projects but also caused dissatisfaction among citizens. Officials, from BDOs to District Magistrates, must register using their mobile numbers. Reports will require OTP authentication and must include photographs of on-ground work. The app mandates regular updates, such as reporting issues in road construction, cleanliness, drinking water, and electricity services, along with distinguishing between simple and complex problems. The model draws inspiration from private sector practices, where geo-tagging apps track employee performance. The state’s new app is expected to enforce accountability among officials, address bureaucratic delays, and improve public service delivery.
In a move that may have surprised the Opposition BJP, West Bengal chief minister Mamata Banerjee appointed Radharamn Das, vice president of ISKCON Kolkata,to a 13-member board of trustees for the upcoming Jagannath Dham project in Digha. The temple, set to be a cultural and religious landmark on the shores of the Bay of Bengal, will be inaugurated on Akshay Tritiya on April 30, 2025. The Jagannath Dham Sanskriti Kendra, spanning 20 acres, is being developed under the supervision of HIDCO, an urban planning body under the state government. With an investment of Rs 250 crore, the project aims to replicate the grandeur of the Puri Jagannath Temple and serve as a significant pilgrimage and tourist attraction. This development comes amid ongoing political friction between Didi and BJP’s Opposition leader Suvendu Adhikari. It may be recalled that Nandigram where the temple is being built was the place where he had defeated Didi in the 2021 Assembly elections. Adhikari who is opposing the project on the ground that using public funds to construct religious structures is unconstitutional. He accused Mamata of attempting to win the Hindu vote bank as her minority appeasement has alienated Hindus. Mamata’s decision to include an ISKCON leader is seen as a strategic move, in light of recent attacks on Hindus in Bangladesh and the arrest of an ISKCON monk. Political analysts believe Didi is sending a message of solidarity to the Hindu community while subtly addressing concerns raised by the BJP over her government’s alleged minority appeasement policies.
Devajit Saikia is the Board of Control for Cricket in India’s (BCCI) representative in the International Cricket Council (ICC) as its Director. Saikia, who is the question that is being asked by those not acquainted with the BCCI’s governance structure, especially after the Justice Lodha Committee’s Reforms in Cricket report was accepted by the Supreme Court in 2016 and its Constitution was rewritten thereafter. The ICC Board is the all-powerful body in its Governance structure, and as a convention, the 12 full members of the ICC nominate its Presidents as Directors. Many stalwarts of the BCCI, like Jagmohan Dalmiya, Sharad Pawar, N Srinivasan and Shashank Manohar were on the ICC Board, and after the 2019 election, post the reforms, former India captain and BCCI President Sourav Ganguly was on the ICC Board. Ganguly was succeeded by the BCCI Secretary Jay Shah with the BCCI President Roger Binny as the alternate director in 2022, the same year when the former Assam Ranji Trophy cricketer and legal practitioner Saikia was elected as Jt. Secretary of the BCCI. People in the know attribute Saikia’s rise on the administration side of the game to his association and rapport with Assam’s BJP chief minister Himanta Biswa Sarma. Once it was announced that Jay Shah would take charge as Chair (Independent Director) of the ICC from December 1, 2024, quite a handful of names like Arun Singh Dhumal (former BCCI Treasurer and currently chairman, IPL) and Ashish Shelar (BJP President, Mumbai and BCCI Treasurer) emerged as a potential successor to Shah as BCCI Secretary. Saikia, will remain the BCCI Joint Secretary and perform the duties of the Secretary. But his nomination to the ICC Board has surprised many people.
Veteran leader Sharad Pawar has once again monopolised the centre stage following reports that a top leader of his party has held talks with a prominent BJP Union minister in Delhi. The political grapevine is buzzing with different versions since the meeting is believed to have occurred at industrialist Gautam Adani’s Delhi residence. In fact, Pawar started hitting the headlines on Thursday (Dec 12) morning as the news that his nephew Ajit Pawar and a couple of other NCP (Ajit) leaders had reached the patriarch’s residence. Ajit later said that being a family member, he had greeted his uncle on his birthday and nothing unusual should be read in the visit. Ajit was accompanied by Praful Patel and Sunil Tatkare, both very close to Sharad Pawar till the recent split in the NCP. The name of Adani added grist to the gossip since the industrialist had visited Maharashtra chief minister Devendra Fadnavis just a couple of days ago in Mumbai. The Adani group continues to BE target of Congress leader Rahul Gandhi and Shiv Sena party chief Uddhav Thackeray. In the past too, Adani has been meeting Pawar off and on. The presence of Fadnavis in Delhi on Thursday proved to be another trigger to speculate that the political scene of Maharashtra was likely to undergo another overhaul. Pawar’s hot and cold relationship with Prime Minister Narendra Modi has always remained an intrigue. Hence, his followers are unable to predict which way he can turn.
The Raj Kapoor family has finally come out together to celebrate the centenary year — 1924-2024 — of the showman of the film industry. Forty two year old Ranbir Kapoor who has been in the film industry for nearly two decades has taken the lead along with his cousin Kunal Kapoor to celebrate Raj Kapoor through his cinema. But was it too late to celebrate RK? Is the newer generation enthusiastic to watch his films? Ranbir Kapoor said, like his wife Alia, the young generation needs to know about the cinema of Raj Kapoor and one hopes he is successful through his stardom and initiative to keep RK’s legacy alive. But, is the film industry or the government really care about saving our heritage or culture, considering the government is calling the film industry as soft power? The hard truth is: why are our studios and banners not surviving be it Filmalaya Studio, Kamalistan Studio and Raj Kamal Studio which has limited work space. Raj Kapoor’s RK Studio, a famous landmark in Chembur along with his bungalow has been sold to Godrej Properties for constructing residential properties. It may be recalled that RK Studio was working on the rentals till the fire destroyed the entire heritage. Luckily film lovers are lucky his films were in the safe custody of NFAI. It is learnt that Ranbir Kapoor who is already a producer wants to turn director. So will he revive the RK Banner? As a part of the centenary celebration the entire RK clan met the Prime Minister Narendra Modi and conspicuous by his absence was Randhir Kapoor as he was not keeping well. In the end one only hopes that Ranbir Kapoor carries the great showman’s legacy forward.
This maverick and marauding scam tainted politician was once the acolyte of Lok Nayak Jayprakash Narayan. Former Bihar chief minister Lalu Prasad Yadav has burnt many bridges in his meteoric rise in politics. A stormy petrel, indicted for five scams, served jail term and is now out on a bail. He is once again in the news for his below-the-belt remark against his bete noire, Bihar chief minister Nitish Kumar who recently announced a Mahila Samvad Yatra to interact directly with women and evaluate the impact of his government’s programme targeted for women. When the media quizzed the RJD supremo Lalu about Nitish Kumar’s Mahila Yatra and his goal of winning all 225 seats in the forthcoming Assembly elections, the unstoppable motor mouth said, “Pahle unko aankh sekhne do” (let them get an eyeful of the women). Lalu is famous for double entendres and pithy talk. This chintzy, low end hit at both Nitish’s party and the women electorate set off a storm. Bihar deputy CM Vijay Kumar Sinha said, “It seems Lalu Prasad has lost his ability to comprehend, doesn’t know what he is saying “. JDU MP from Munger, Rajiv Ranjan Singh said, “Lalu is master of buffoonery”. Public discourse is an amalgam of many such talents. But certainly hitting below the belt and indulging in such loose talk shows the lack of grace and polish.
Shiv Sena leader Uddhav Thackeray’s plans to attend the Winter Session of the Maharashtra legislature beginning from December 16 at Nagpur will prove to be a game changer, his followers feel. Thackeray’s continued distance from the state legislative council proceedings over the past year are discussed by his party members in hushed tones since the aggressive direction needed to corner the BJP-led three-party government somehow lacks as far as his Sena is concerned. Council’s leader of the Opposition Ambadas Danve (of the Sena UBT) lacks the image and articulation which are vital for any LoP to humble the ruling side. Now that the new government led by Devendra Fadnavis has decided to appoint former CM Eknath Shinde as leader of the upper house, Danve’s limitations will be felt more vividly. Thackeray’s intermittent presence in the council ever since he resigned as chief minister in 2022 has been noted more due to his statements outside the house. He has hardly made any worthwhile speech on the floor. Therefore, his plans to remain present for the Winter Session have revived the hopes of his followers, who wish to witness his attacks against the BJP and the Sena led by Shinde. It is being recalled that Thackeray did not attend the recent three-day session of the legislature in Mumbai, held after the assembly elections. According to present indications, Thackeray will reach Nagpur well in time for the week-long session, which will be a stormy affair, focussing on settling political scores.
It did poorly in the last edition of the IPL (Indian Premier League). That has not in any way brought down its brand equity, however. Proof of the pudding is in eating it is said. If at all any proof is required, here is the latest. For the first time perhaps in the annals of the IPL team Chennai Super Kings (CSK), its original franchisee owner, The India Cements Ltd (ICL), chose to leverage the CSK brand name and launched a new product sometime in the middle of March this year. India Cements launched on March 16, 2022, Conkrete Super King (CSK), a new brand of cement, across the country. Touted as a one-stop concrete solution – from foundation to roof, the launch of Conkrete Super Kings was followed by some aggressive digital campaigns, digital advertisements, hoardings, jingles et al. Well, the CSK brand of cement has sold one lakh tonnes since March when it was launched. The CSK brand launch has, coincidentally, seen India Cements beefing up its marketing apparatus. The N Srinivasan-led cement major has strengthened its marketing and sales force by recruiting a number of foot soldiers to give brand CSK a big push in the marketplace. A new-found focus is certainly on to give CSK cement an all-India visibility. Well, the numbers appear to be encouraging for the ICL mandarins.
The Taj Group of Hotels has retained the iconic Taj Malabar Hotel at Willingdon Island in Kochi, Kerala. The Cochin Port Authority (CPA) which owns the property, finalised the bid for operating the heritage property on July 1. Though many leading hospitality groups showed interest in the bid, but the Taj Group managed to retain it for an enhanced lease amount of Rs 1.25 crore per annum. Taj Group paid Rs 71 lakh per annum for the earlier lease. Under the new agreement which is for 30 years, the lease amount will increase marginally every five years. Quite a few hospitality chains had picked up the bid documents, but ultimately there were only two bidders. Though the Taj group had the benefit of first right of refusal, they resorted to outright bidding to retain the property. CPA, did not disclose the name of the competing bidder. With the new Coastal Regulation Zone rules in place, no expansion of the hotel can be undertaken. So, the Taj Group will undertake an exhaustive renovation of the hotel and resort. Ever since CPA indicated that it was going for a fresh bidding of the resort, no upgradation or renovation was done at the premises for nearly two years.
With the Indian Space Research Organisation (ISRO) reportedly planning for eight programmes in the next decade, companies are confidently going ahead with the use of carbon-fibre composites. These, say those using them in their products – from windmill blades to railway bodies to rocket components – comfortably outsmart all other materials thanks to their high chemical resistance, tensile strength and stiffness as well as low thermal expansion. It is no wonder that Shekhar Sardessai, chairman & managing director of the Goa-based joint venture Kineco Kaman Composites, is over the moon with a new order from ISRO’s Vikram Sarabhai Space Centre (VSSC) for crew orbiter module adaptor assemblies (OMAs) for the country’s maiden first manned space flight, Gaganyaan. The contract for these was signed just after the successful supply of a composite equipment bay shroud to VSSC for the geosynchronous satellite launch vehicle (GSLV) Mk-III as well as several other space and aerospace programmes. The OMA, a conical carbon fibre reinforced plastic structure integrated with metallic rings machined to tight tolerances, is a critical component of the GSLV, which acts as an adaptor between the crew escape module and the escape bay shroud. “We will definitely meet the stringent quality parameters and delivery timelines,” says Sardessai. The company will supply the first three assemblies by the end of 2023. After that, the sky is no longer a limit!
International travellers flying in and out of Trivandrum Airport in Kerala were deprived of duty free shopping for the last four years. With Adani Group taking over the airport in October 2021, things have changed for the better. The Customs authorities had shut down the duty free shop at the airport on the grounds of illegal sale of alcohol to the tune of Rs 6 crore. The allegation was that the then Malaysia-based operator, Max Plus, was diverting foreign liquor meant for sale at the airport to the black market. Max Plus was using travel documents of passengers passing through Trivandrum without their consent for the illegal sale. Even after four years, the Customs Authorities and the then operator, Airport Authority of India (AAI), were least bothered to hasten the investigation and reopen the duty free shop. Adani on the other hand meant business. After all, the group paid Rs 476.10 crore to earn the right to operate Trivandrum Airport. They immediately got the Customs NOC to reopen the duty free shop with a new partner, the Dubai-based Flemingo. In fact, Flemingo also operates the duty free shop at Colombo’s Bandaranaike International Airport. With the footfalls expected to increase manifold, the Adanis are out to make a handsome packet. Incidentally, Adani is also the operator of the Vizhinjam sea port at Trivandrum.
The news that Lakshmi Kaul, Head & Representative, Confederation Of Indian Industry, UK has moved out caught everyone in London by surprise. Nobody knows where Kaul is headed. Unlike her predecessor Suchita Sonalika who moved to the USA in 2018 to head the CII office in Washington, sources say it is unlikely that Lakshmi will stay within the CII. While Lakshmi was in New Delhi last week, CII’s senior director in Delhi, Kavita Choudhry flew to London to hold the fort till a new successor is found. Kavita who has worked with CII for over a decade was responsible for the Europe sector for over four years as well as the South East Asian corridor. Though Kavita is capable and has rich experience, the sudden departure of Lakshmi has perplexed trade, business and media especially at a crucial time when negotiations related to the Free Trade Agreement are in full swing. CII plays a stellar role in the UK as a powerful trade organisation representing Indian business interests. Lakshmi’s warm demeanor and social engagements have proved very valuable to CII over the years. Lakshmi who worked for over 15 years in the UK handled a whole gamut of things ranging from relationship building, public relations, research, strategy and policy work to creating community networks. Lakshmi will definitely be missed.
Land is a touchy subject. Not surprisingly, any land deal in this part of the world draws more than cursory interest across the canvass. This time it belongs to the venerable Theosophical Society in Chennai. This institution at Besant Nagar in the heart of the city of Chennai has now penned a pact with an equally well-known name – Shiv Nadar Foundation. The society has decided to give the foundation 14 acres of its land on a long-lease basis to the Shiv Nadar Foundation. The Shiv Nadar Foundation is planning to set up a world-class K-12 school in Chennai, which, it claims, will be a progressive, ecologically-sensitive school with the highest international standards. Shiv Nadar Foundation is India’s leading philanthropic initiative by Shiv Nadar, founder of the HCL Group. It has established a chain of not-for-profit progressive schools in the National Capital Region (NCR) of Delhi. Today, these are among the most sought-after educational institutions in the area, and are consistently ranked among the top schools in the country. With their novel pedagogical approach, Shiv Nadar School nurtures young children into life-long learners and conscious citizens. The Society-Foundation alliance comes years after its lease pact with J Krishnamurthy Foundation-run school expired. In a state where anti-anything sentiment sprouts up at the drop of a hat, the society-foundation agreement has also come under intense focus.
India has experienced the full gamut of sentiments concerning the cow — from cow worship, cow vigilantism, to riots to protest beef eating and intolerance to use of leather products. Against this backdrop, a new chapter has just opened up. For the first time a whopping 192 metric tonnes of indigenous cow dung has been exported to Kuwait by the Jaipur-based Sunrise Agriland Development & Research. The company’s director Prashant Chaturvedi is elated that even Islamic countrIes like Kuwait understand the nutrient value of cow dung. Atul Gupta, President of the Organic Farmer Producer Association of India is gung ho about the potential for organic fertilisers, especially cow dung. Reportedly, in 2020-21, the export value of natural fertilisers was Rs 27,155 crore. According to Kashmir Digest, “Many countries have found after research on indigenous cow dung that it can, not only increase the production of crops, but the use of the products produced from it can relieve humans from serious ailment. This is the reason that many countries have started importing indigenous cow dung along with organic manure from India.” Kuwait has singled out cow dung as an appropriate fertiliser nutrient for increased Date size and yield. This move has made Goshalas in India optimistic which had all along claimed that dung was the best organic fertiliser for healthy agri-products. Holy Cow, dung in demand!
While India’s Ministry of New & Renewable Energy has set a target of 100 GW for wind energy by 2030, it is also understood that the government is proposing two pilot research projects for sea-based windmills, one each in Tamil Nadu and Gujarat. These initiatives, according to alternative energy experts, should result in reduction in the oil import bill. Prominent wind evangelist Senator Dr PKC Bose, for one, was gung-ho about World Wind Day (June 15). “Let’s enjoy the natural therapy of wind,” says Bose, who is Vice Chairman & Managing Director of the German Enercon Group’s Indian subsidiary Enercon Windenergy. Kochi-based boat builder Dr Jeevan Sudhakaran, CMD of Samudra Shipyard in Kochi said,“The sail harnessed it first and continues to do so”, and then told Bose “You are electrifying it without a carbon footprint!” Wind is surely slated to play a large part in the future of energy, with people like John Burroughs, American naturalist and nature essayist of the 19th and 20th centuries, having declared: “The fuel in the Earth will be exhausted in a thousand or more years, and it’s mineral wealth, but man will find substitutes for these in the winds, the waves, the Sun’s heat, and so on and so forth.”
The going has been tough for this one right from the word go. This one came to Tamil Nadu after two States – Maharashtra and Goa – spurned it. Finally, it found sanctuary in the Dravidian state. And, the Sterlite Copper smelter plant at Thoothukudi had run freely for over two decades under the dispensation of AIADMK and DMK – the warring political parties in Tamil Nadu. Problem began when it went in for expansion. A protest followed. Not just that. A police firing on the anti-Sterlite protesters saw 13 people killed. A panicked government ordered the immediate closure of the plant. Well, this has caught everybody in an inextricable position. Many jobs have disappeared and thousands of crores lost in the process. And, India slipped from its pre-eminent position in the global copperfield. Virtually caught in a cobweb, Anil Agarwal, promoter of Sterlite Copper has now chosen to sell the immobilised plant. The move has taken everybody off guard. Is it a positioning strategy? Or, is it a business decision? With Ford exiting India, the proverbial sword hangs over the heads of workmen at its Maraimalai Nagar plant in Tamil Nadu? Coming as it does in the wake of Agnipath imbroglio, the Sterlite Copper sale move has surprised everybody alike, including the authorities. Well, it is yet unclear how Sterlite wants to go about selling its assets in Tamil Nadu.
Aerospace engineer M Premkumar who works for Honeywell Aerospace in Bengaluru has turned a Pomologist, a specialist in fruit culture. Call it serendipity. While travelling through rural areas of Karnataka he came across an unusual red variety of Jackfruit which was succulent and dripping with sweetness. Immediately he fell in love with this fruit and felt it should be grown in his village in Tamil Nadu’s Ranipettai district. He zeroed in on some 30 of these exotic red varieties and set up a model red Jackfruit breeding farm and raised 1500 saplings, and sold it for Rs 250 per sapling. Says Premkumar “These saplings need care for three years, and then they can live up to more than 50 years yielding soft fleshy fruits which don’t spoil for up to five days.“ The ordinary jackfruit yields just 20% of its weight as edible fruit, while the red variety yields up to 65% per kg. This makes the red variety hugely attractive in terms of investment as 1 acre can accommodate 70 saplings. Unripe Jackfruit is already in big demand globally, as it tastes like shredded chicken, pulled pork and is considered a boon for vegans. Premkumar is trying to develop uniform varieties for creating a market under the National Horticulture Mission. To connect Jackfruit farmers world over he has started a WhatsApp group that exchanges ideas for this fruit.
There was a time when a contractor would give an arm and a leg to win a big government tender. Not anymore. According to ministry mandarins, many contractors who bagged major contracts are doing their utmost to get blacklisted to avoid executing the tenders, and escape severe penalties for failing to meet the project execution milestones. According to a highly placed PSU source, many of the contractors had bagged the contracts in 2020, when steel prices were in the range of Rs 37,000 per tonne. The contractors, as is the norm, would have factored in a 15-20% hike in steel prices. In reality steel prices doubled to Rs 72,500 in March 2022 before falling to around Rs 60,000 per tonne in April 2022 “There is no way the contractors can execute projects at these prices; it’s totally unviable. But given the stringent penalties for failing to meet tender conditions, the only hope for contractors to escape the penalties is to get blacklisted on some count or the other,’’ said a source. If a large number of contractors get blacklisted it will be a big setback for all public sector undertakings. With the government chalking up a CAPEX of Rs 7.5 lakh crore in 2022-23, it will be a lose-lose proposition for everybody. So, should public sector undertakings go in for re-tendering the contracts?
A new bee on the job horizon goes by the exotic name of Gig business. Many big companies including Tatas, Infosys, Britannia, Wipro, Ola, Fresh to Home etc are looking to the gig economy to cut costs and access talent across locations. There are now quite a few popular gig worker platforms like Awign and Taskmo. Gig is a slang term used for a single professional engagement usually for a short duration. Some of the examples are freelancers, independent contractors, project-based workers and temporary or part-time hires. The huge interest has seen Awign’s top line and bottomline grow 10- fold, according to Annanya Sarthak and Gurpreet Singh, the founders. In the last one and half years, the business profile of its customers changed to large enterprises — either Rs 1000 crore brick and mortar enterprises or scaled up growth companies like Swiggy, Ola, Byju’s etc which have grown into large enterprises. Another company, Taskmo, is also seeing its business grow. Taskmo has added 430-450 new task listings. At least 20% of them were as per specific customer requirements. This is a new trend with momentum picking up as companies look at flexi-hiring to rationalise talent acquisition, says Prashant Janadri, Taskmo promoter.
A huge amount outstanding in bad loans which they will have to write off because they can never recover the money is seeing Indian public-sector banks (PSBs) winding up their operations in Hong Kong. The city state, unlike back home in India, has strict laws about bad loans in bank’s books. Many of these PSBs, perhaps, were pressured to open branches for political and not commercial reasons. These allowed businessmen to get easy loans, allegedly for a fee, and these borrowers then declared huge losses and, eventually, bankruptcy – obviously leaving the lenders in the lurch. Says a local banker: “Even today, there are too many Indian banks here and none making money!” While there is an uproar in Parliament if banks write off loans, HK laws say that bad loans must be written off if they are not collectible. “Bahut chor hain – and banks are bakras!” he adds. “It is good that finally, this government is closing down banks which are not profitable.” The Union Bank of India has already transferred its client accounts to its Singapore and Australian branches and is on the threshold of winding up in HK totally. There are three more in the process of winding up in HK. Eventually, State Bank of India will probably be the only PSB left there.
The high attrition levels in the IT industry is turning into a big headache for corporates. Big IT companies like Cognizant, Infosys, TCS, Capgemini, Wipro are witnessing an exodus of employees with five years of experience or more. The reason is amply clear, as salaries have jumped up after the long Covid break. Cognizant saw attrition levels of 40%, Infosys @ 25% and TCS @ 15% to name just a few. Earlier, someone with five years of experience earned Rs 24-25 lakh per annum. Now the salaries for the same level and experience net an employee Rs 30-38 lakh per annum. It is not clear if the same is happening for higher level jobs in IT companies but, this is good news for engineering graduates. The IT sector has been a mass recruiter for some years now contributing to 5% of the Indian GDP. But it was saturating with only good skilled IT engineers in demand. All this was before the Covid-19 pandemic. The U.S. produces around one lakh engineers per year in a $ 16 trillion economy. And India produces 15 lakh engineers in a $ 2 trillion economy. With manufacturing, electrical and civil taking a back seat as employment generators, it was the IT sector that has been the saving grace for some time now.
CSK is Dhoni and Dhoni is CSK. This is often reiterated by N Srinivasan, the owner of the Chennai franchisee of the IPL team. To be sure, Dhoni and Chennai have become inseparable. Not surprisingly, Dhoni has often said his last game in the highly popular Indian Premier League would be in his adopted home city of Chennai. His affinity to Chennai is all too apparent. And, his propensity to think out-of-the-box is legendary. It is no wonder that people across the spectrum view him a strategist par excellence. How else could one decipher his investment in the Chennai-based Garuda Aerospace, which is a DaaS (drone-as-a-service) provider. If highly-placed sources are to go by, the former Indian cricket captain has invested close to Rs 10 crore into Garuda Aerospace. Garuda has also signed up the World Cup winning captain as its brand ambassador. This is expected to fetch MSD Rs 5 crore. Besides bringing in Rs 5 crore, captain cool will be investing this fee also into Garuda. This makes his total investment into the Chennai-based company at Rs 10 crore. The investment of Dhoni is part of the bridge round, ahead of Garuda’s $30 million Series A round. He may have quit international cricket. Yet, Captain Dhoni remains a formidable brand to reckon with.
Every region in the UK is actively pursuing collaborations and tie-ups with Indian organisations. Recently, the University College Birmingham (UCB) entered into a tie-up with a range of academic institutions and organisations in India as part of a continuing drive to boost skills development in India. Bharat Sakhuja, Associate Director of the University’s International department and Alice Wilby, Pro Vice-Chancellor (Access, Participation and Student Experience) at University College Birmingham from the University were in India recently to meet Dr Sangeet Jaura, Pro Vice-Chancellor of Chitkara University, Professor Tabrez Ahmad, Vice-Chancellor of GD Goenka University, Dr Manju Gupta, Dean Academics at IMS Noida, Ved Mani Tiwari, Chief Operating Officer of the NSDC. The duo told shortpost.in, “The new linkups will offer a wide range of potential benefits and opportunities covering key areas including student mobility and up-skilling, progression arrangements, teacher training and cooperation, as well as collaborating in joint conferences and seminars.” They also shared that discussions were held towards creating more opportunities for Indian students to attend short courses in the UK. Collaboration between these Indian institutions and UCB will allow effective mobility of students between the institutions and enable them to consider integrated pathways which would be beneficial not only for students but for the academics in raising the level of teaching.
For decades, Asian Paints has led the pack in the Rs 60,000-crore plus paint industry. But with Grasim Industries, part of the Aditya Birla Group setting its sights higher, the competition will intensify. Grasim has chalked up a Rs 5000-crore investment plan in the decorative segment which is growing at 11% per annum. This announcement by Grasim which has heft and gravitas to disrupt the market made competitors like Asian Paints, Berger Paints, Kansai Nerolac and Akzo Nobel sit up and take notice. Grasim’s foray into the segment will be backed by their existing leadership in cement, white cement and putty business. Paint is a high growth market and the pie is large enough for everyone to share, industry observers say. There is no denying that leaders like Asian Paints will not find the going easy anymore. Sajjan Jindal group’s JSW has also entered the space, so cut-throat competition is bound to see ad spends growing with margins coming under pressure. In fact, Asian Paints read the writing on the wall and made public that it was looking beyond paints. Recently, the company picked up 49% stake in White Teak Company selling lighting and fans and will increase its stake based on the response. Time will tell which company remains in the black and which moves into the red.
This IAS class of officials possesses the uncanny ability to stay relevant all the time. They don’t just disappear into the sunset after superannuation but, simply don a new avatar. Their utility never dissipates and, their experience in government simply can’t be brushed aside. Probably, they are capable of bringing to the table an entirely new perspective. It is no wonder then that two leading industrial groups of Chennai have drafted ex-IAS officers as chairmen for their enterprises. Sundaram-Clayton Limited (SCL) has appointed R Gopalan, a bureaucrat who served Tamil Nadu as well as the Centre, as its chairman and, another Chennai-based company Ramco Cements followed suit onboarding MF Farooqui, a retired IAS officer to the same post. Of course, both Gopalan and Farooqui have served on the boards of SCL and Ramco Cements respectively for a while now. But their elevation to the top slot in the organisations has forced many long-time watchers of these family enterprises to sit up and take notice. This is the first time that these industrial conglomerates in Chennai have adopted such a course. Larger benefit of having experienced bureaucrats as chairmen notwithstanding, the move is also seen as a step towards splitting the CMD post. At least in these two instances, it appears to be a case of striking two mangoes with one stone!
ICICI Bank’s blue-eyed boy Anup Ratnaparkhi, who currently heads Branch Banking and NRI operations in the UK, has put in his papers. Thirty-nine-year-old Anup, who had a 14-year long stint, is joining the London-based Ribbon Plc as Chief Commercial Officer. This venture has been promoted by his former ICICI boss Asesh Jani. It is an AI powered technology company that promises to offer a hyper-personalised digital experience to users. Ribbon is loaded with features including an embedded payments marketplace, access to deposits, FX, Crypto & Equity trading platforms. It was Asesh who had spotted Anup’s talent in ICICI and moved him up from Hyderabad to London. The scene at the State Bank of India, UK is no different. Most professionals posted here from India are currently in a flux. Most of the senior staffers who were transferred out of India have completed their term and will now return to India. This includes SBI UK head Sharad Chandak, ED Sanjay Pandey and COO Anurag Joshi. Elsewhere too, it seems to be the season of retirements or transfers. Gayatri Issar Kumar, the Indian High Commissioner in UK is into farewell party mode as she retires in September. Meanwhile, Rohit Vadhwana (IFS) who is First Secretary for Investment & Trade and also handles the Press portfolio, has been posted to Kenya.
A decade ago, he was told that he couldn’t head an incubator company being set up by Microsoft because he had no start-up experience. James Joseph, a 25-year tech veteran, took a year’s sabbatical to write a book – which was when he saw his future growing outside his study window in Kerala: a jackfruit tree. The idea that hit him fructified further when he met a diabetic parish priest, who told Joseph that raw jackfruit had brought his sugar down. He researched it, and came up with Jackfruit365, a flour made with green jackfruit. “This is a diet supplement for diabetics and has beneficial effects when used as a replacement for an equal volume of rice or atta,“ he says. “But it should not be compared with medicine.” Along the way, he won the 2020 National Start-up Award for Food Processing and found another supporter: Infosys co-founder and billionaire businessman Kris Gopalakrishnan, who has provided his start-up with the all-important corporate connect. “CII, especially Kris, wants more members to use Jackfruit365 as an example to foster more such partnerships,” he says. Why? “I am an admirer of James and his entrepreneurship,” Gopalakrishnan explains. “So I talk to my industry colleagues and government officials about the product and how James has established the benefits of using it. He alone is responsible for jackfruit becoming the state fruit of Kerala.”
The Multi Commodity Exchange of India (MCX) has signed an MoU, to provide technical support for Bangladesh’s first commodity exchange. The Chittagong Stock Exchange has decided to launch Bangladesh’s first commodities exchange, on futures markets next year and roped in MCX to draw up the regulations and bye-laws, the settlement methods, besides providing tech and infrastructure support for the new exchange. MCX which is working on a five-year plan is scouting for talent to manage and work on the project. The new exchange is expected to provide competitive pricing and rationalise price manipulations in the commodities sector in that country. The exchange is also expected to provide farmers with greater liquidity. The exchange is expected to trade in gold, tea, agricultural produce, iron ore etc. MCX, India’s first listed exchange, is a commodity derivatives exchange that facilitates online trading of commodity derivatives transactions, thereby providing a platform for price discovery and risk management. The Exchange, which started operations in November 2003, operates under the regulatory framework of the Securities and Exchange Board of India (SEBI). MCX offers trading in commodity derivative contracts across varied segments including bullion, industrial metals, energy and agricultural commodities, as also on indices constituted from these contracts. It is India’s first Exchange to offer commodity options contracts, bullion index futures and base metals index futures contracts.
Chennai is set to soar high. The old man on Mount Road, the 13-storey LIC Building, for long the only noticeably tall landmark in an otherwise vertically challenged city used to growing sideways rather than upwards, will soon get company. A 25-storey tower block of offices is coming up on the old TVS plot. Whether vertical growth is defined as progress would depend on the point of view. But, with a change in government, came a significant FSI change – from 3.5 to 5. You can think what you will of how such changes come about, the most obvious being the use of financial clout by the builders’ lobby. The fact is the Brigade group of Bangalore, with its political connections and heft, will be the first to take advantage of the higher FSI with a landmark building that will dwarf the nearby LIC structure, old Chennai citizens described using the Tamil phrase – Heightu da! A lot of changes are also on the cards for what used to be the centre of the city’s business district, with many old firms likely to sell out to builders in the CBD. TVS’ R Dinesh, who inherited the old HQ of the reputed TVS group on Mount Road along with the Honda dealership, was the first to cash in on the new FSI.
Chief Minister Naveen Patnaik’s new dream is to make Odisha India’s aluminium capital and the global aluminium hub. Not without reason too. The state enjoys the true boast of 54% of the aluminium smelting capacity through NALCO, Vedanta and Aditya Birla manufacturing units in India. Of course, this is backed by the state’s rich reserve of 2 billion tonnes of bauxite. NALCO has already chalked out an investment outlay of Rs 30,000 crore towards expansion and diversification to be completed by 2027-28. It has also entered into a JV with the state-owned Industrial Development Corporation to set up a state-of-the-art Aluminium Park in Anugul costing Rs 428.95 crore, estimated completion by 2023-24. The Aluminium Park located next to NALCO’s plant will promote downstream aluminium industries with common facilities including logistics, testing, simulation, prototype development and skill development facilities. Joining the chorus is Anil Agarwal of the Vedanta Group that is also planning a Rs 10,000 crore investment to set up an Aluminium Park at Jharsuguda in Odisha to bring in SMEs and MSMEs under one single roof so they can procure the hot metal from Vedanta. With Patnaik transforming the state, Odisha has emerged as the new investment destination of India.
The Rs 5,138-crore HLL Lifecare (formerly Hindustan Latex) headquartered in Thiruvananthapuram, Kerala is attracting many suitors. This follows the Government of India’s November 14, 2021 decision to hive off its entire stake in HLL Lifecare. Around seven suitors including the Adani Group, Piramal Healthcare, two Kerala based companies advised by two former CMDs of HLL Lifecare, a fund besides NRIs. HLL Lifecare, which started as a condom manufacturer sold under the brand name Moods, is today a health care company in the truest sense. It has a Pharma business, makes medical devices, runs diagnostic centres, manufactures sanitary napkins and blood bags etc. The company has seven factories, four in Kerala and one each in Belgaum, Manesar and Indore. Today the company operates 220 pathology labs, 47 imagery centres, six labs under the Hindlabs brand and 253 pharmacies across India. Both Adani and Piramal are keen to acquire it. The cash strapped Kerala government, however, could play spoilsport since it wants to take over the company although its offer was declined. The company’s turnover jumped three times from Rs 1739 crore in 2019-2020 to Rs 5138 crore, the profit marginally lower than the previous year. The jump in turnover was a result of enhanced non-core activities including huge purchases and supplies of Covid vaccines, surgical masks and gloves for various State Governments and hospitals.
Saraswat Brahmin entrepreneurs from across the globe will converge in Goa come September 10, for the first Annual Conclave. The Saraswat Brahmin community of business leaders from different parts of the world joined hands and formed the Global Saraswat Entrepreneurs Chamber (GSEC) in 2019, resurrecting the nearly 30-year-old Saraswat Chamber of Commerce set up by Suresh Prabhu, senior BJP leader and former chairman of the Saraswat Cooperative Bank. This one-day conference is expected to draw some of the biggest names from the community including, Bharat Ratna Sachin Tendulkar, singer activist Hemaa Sardesai, hoteliers Vithal Kamat (Kamat Hotels Group), Raghunandan Kamath (Natural Ice Creams) and Marathi actor Ashok Saraf to name just a few. The underlying objective of the conclave “to build a wise, vibrant and prosperous community ecosystem for Saraswats in business and profession,” says Siddharth Sinkar, founder director of GCSE. The Saraswat community is primarily known as an ethical and philanthropic segment of society that channelised and harnessed cumulative energies for collective excellence in society. In the fields of business and commerce the community has been a frontrunner in the banking and cooperatives sectors.
Looks like Tesla may not roll out its EV in India anytime soon. Sources say Tesla recently transferred some key officials out of India to alternate global markets in APEC, Middle East and the USA. This indicates that Elon Musk, who was keen on the Indian market, has decided to move on for the time being. Indianconsumers will buy what’s produced in India by Tata Motors, Mahindra, Morris Garage, Hyundai and Maruti presently. Primarily, Tesla chose not to enter the Indian market because of Indian government policies. Given our relationship with China and Modi’s push for Make in India, the BJP government was averse to allow made in China Tesla cars, boosting Chinese employment, but marketed in India without an immediate commitment to manufacture in India? There are several reasons Musk may have put India on the back burner. Firstly, current EV sales touch barely 1% of total auto sales in the country which does not make economic sense for Tesla to set up a unit in India. Secondly, with 100% import duty, Tesla will become over priced in the Indian market. Thirdly, India is not yet ready with its infrastructure, including road worthiness and charging stations. And, fourth reason is Indian insistence on a long term manufacturing commitment, distinct from being considered like a test pilot case.
It is no thanks to the National Green Tribunal’s (NGT’s) vigilance that both, the private sector and government-owned companies brazenly breach environmental laws and, very happily pay the prescribed fines. The reality is that the importance of environmental conservation is not given its due consideration with the NGT mandated penalty system not a functional and practical deterrent. Observers say, tougher measures are needed for the private sector and government-owned companies like NTPC, Indian Oil, BPCL, Singareni Collieries and others that boast of a track record of repeat environmental violations. Without the government’s continued commitment, NGT cannot deliver results by itself and, sadly, tough government intervention is only seen in the wake of intense public pressure. Take the case of the Vedanta Group which had to shut down its Thoothukudi plant, over Sterlite’s pollution issue. No lessons appear to have been learnt from it. Recently, NGT fined Vedanta Rs 25 crore for the expansion of the Lanjigarh factory in Odisha without due EC clearances and also levied a Rs 25 crore penalty upon Hindustan Zinc for violating environment norms in Rajasthan. Sometime in 2017, Vedanta was asked by the Chhatisgarh government to shut down its 1200 mw Balco power plant for violations of environmental norms. Harsh measures yielded results and today, Balco’s power plant is one of the best energy conservation units in the country.
Pankaj Munjal of Hero Cycle’s fame has ambitiously big plans to strengthen the company’s presence in overseas markets, particularly across Europe. His company Insync Bikes Ltd has geared up to manufacture top end e-bikes at Trafford in the United Kingdom. Munjal, who visited UK to unveil his plans, told shortpost.in, “Manchester has given us more than what we had expected or planned.’’ The immediate future plan involves development as part of the budgeted £150m group-wide investment. His Manchester-based Global Design Centre has innovated an e-bike with artificial Intelligence functions that will incorporate advanced technologies such as Google services integration and introduce anti-theft systems and advanced telematics. Approximately 300 e-bikes will be manufactured every month at Trafford and priced at £3000 per piece. These e-bikes are expected to hit the road by August-September of 2022. The company received an award for being a Fast Track Indian company in the UK from among 900 companies surveyed by Grant Thornton in its India Meets Britain tracker report. Despite difficult conditions in the UK and Europe, Insync Bikes ranked 7th on the growth rate parameter. If the Indian experience is an indication, it will be among the top four players, sooner than later
The South Side Story is always exciting. Family enterprises are a dime a dozen in this part of India. Some of them, especially in Tamil Nadu, are iconic names. These two industrial groups are definitely a name to reckon with, and they are trend setters in many ways. The TVS group, for instance. This venerable industrial house – comprising four families – has recently chosen to go their separate ways legally. With families expanding through fresh generational additions, the TVS group has done a remarkable job of succession planning. Now that they have separated legally, each family within the larger TVS tree has unhindered leeway to chart out their own individual paths. The Murugappa group, too, is another reputed name. It was the first to hit upon the idea of a group corporate board many summers ago, to delink the family from the management of their various enterprises. The Sanmar group under the late N Sankar took a cue from them. It was, however, a different matter that Murugappa junked the group corporate board a while ago. The Murugappa group, if grapevine is anything to go by, is now looking to emulate the TVS model of separation. Will the TVS model be the template for amicable resolution of succession planning in family businesses?
Is Elon Musk picking up a bias against Indians? It would appear so if emerging dramas follow an early trend in which the world’s richest man, out on a spree to buy his favourite toys, has had bones to pick with Vijaya Gadde, a lawyer of Indian origin, even as the status of Twitter’s CEO Parag Agrawal is under a cloud after the acquisition. Vijaya, top censorship advocate at Twitter had taken decisions to keep out contentious content in 2020 and she was fiercely defended by Twitterati after the Muck onslaught. As owner of the company, Musk will have the power to fire key individuals and Parag may be the a name on that purging list even if he had picked up a reputation as a top engineer who had helped transform Twitter’s developing projects, including letting algorithms guide moderation software. Musk’s ‘absolute free speech’ platform may be up for confrontations with India, which has been thin-skinned to the extent of being the country asking for the most tweets to be taken down. Musk’s ties to China with his Tesla electric cars, which are not being allowed free access if they are not made in India, might also put him on a collision course with India. His obsession with the number 420 places him in a piquant position with the number in India’s IPC that is to do with cheating and fraud.
The recent fire that destroyed 20 electric scooters manufactured by a firm in Nashik, Maharashtra, has set the cat among the pigeons in the electric vehicle (EV) industry, which has already got the jitters over several isolated instances of spontaneous combustion of EVs. Why and how does this happen, is the question in the minds of everybody? There’s a lot riding – literally – on electric two-wheelers, more than cars and three-wheelers even as sales in the segment have rocketed nearly 500% in just one year. According to the government’s VAHAN portal, 2021-22 saw the producers laughing all the way to the bank with well over a quarter million EVs sold, compared to mere 40,000 sales in 2020-21. Chetan Maini, Co-Founder & Vice Chairman at SUN Mobility, the pioneer in the EV world who created India’s first electric car REVA, gives a variety of possible reasons: “Such things can be caused by poor cell selection, defective cells, poor thermal management, manufacturing issues and poor charging management amongst others.” According to his fellow Bengalurite Amitabh Saran, Founder & CEO of Altigreen, which started off in 2013 creating EV technology and now manufactures electric three-wheelers, these products were “not engineered in or for India”. Whatever the cause, the hope that it can be controlled – and soon — is universal, with EV being widely seen as the future of mobility.
To make good the exit of South Korean steel major Posco, Odisha Chief Minister Naveen Patnaik has successfully roped in India’s leading integrated steel major JSW Steel, part of the $13 bn JSW Group headed by Sajjan Jindal. JSW’s wholly owned subsidiary JSW Utkal Steel is expected to set up 13.2 MTPA at an investment cost of Rs 65,000 crore in Jagatsinghpur district close to Paradeep port. The Odisha project dovetails with Jindal’s game plan of achieving 50 MT capacity. The JSW project has already received EC clearance and is getting ready to implement pre-project stage requirements including employment and livelihood creations. The Odisha government seems confident of handing over 2,950 acre land to JSW Steel this fiscal since most land parcels belong to the government anyway. Other small gap are being covered through collective persuasion, court support rejecting vested PILs and fair compensation for loss of betel-nut farm lands. Learning from the Posco experience, the Odisha government is not leaving any chances for slippages anywhere, by taking everyone on board through village meetings, addressing concerns with matched speed of action to deliver complete parcels of land to JSW this fiscal. If Naveen babu gets the project going Bhubaneswar could well emerge as the steel capital of India with other players like ArcelorMittal, JSPL and others also evincing interest.
One of Kerala’s iconic hotels, the Taj Malabar Resort & Spa in Kochi near Willingdon Island is up for grabs. Cochin Port owns the property built in 1936 and named after the first Viceroy of India, the 1st Earl of Willingdon and, has invited bids. The Taj group which has been managing the property since 1985, is now running it on extension after the expiry of its lease. Cochin Port has invited tenders for a pre-bid meeting for the Port-owned buildings (Malabar Hotel) for a period of 30 years. The last date for submitting the bid is May 6. The Taj group currently pays a lease rental of Rs 71 lakh per annum. Many contenders have lined up for this prestigious property including the likes of ITC Hotels, Oberoi Group and Kerala’s top business names like RP Group, Lulu Group etc. The Malabar Hotel offers stunning views of the Cochin Harbour and the Arabian Sea and can still remain with the Taj Group if they invoke the right of first refusal in the bidding process according to well-placed sources. The Tatas may still retain the property if they match the highest bidder. A spokesman for the Lulu Group denied being in the race and said that the Group was currently focused on only two properties: the Grand Hyatt at Bolgatthy and Marriott Hotel at Edapally.
Social media has become so powerful a communication tool these days and yet, not everybody understands the scale of its utility. None, however, can afford to ignore it. Not surprising, all and sundry have made it a point to be visible on the social media platform. Take the case of the Vedanta outfit. Mired in a local political slugfest and caught up in a legal bind, Thoothukudi-based Sterlite Copper, a unit of the Vedanta group, is stuck in a pincer-like situation, being hammered from all sides. How to fight this tricky situation? Well, a new Twitter handle was set up in January this year, created by Sterlite Support Federation, a non-government and non-profit organisation. The federation was formed ostensibly to bring all the pro-Sterlite people across the country to “fight for the cause, thereby giving jobs to thousands.” With over 400 followers, this appears to be a determined counter to the anti-Sterlite lobby that works relentlessly to derail any efforts to revive the Sterlite Copper plant in Tamil Nadu, ordered to close down by the previous AIADMK regime following police firing that resulted in 13 deaths. The firing was ordered to disperse the anti-Sterlite agitators in the vicinity of the plant a few years ago. Can the micro-blogging site help check-mate anti-Sterlite sentiment?
The Gujarat-based Adani group, with interests in every field that involves energy, has announced a massive expansion in its construction financing. So too the group company Adani Gas Ltd (AGL) with its city gas distribution and piped natural gas to the domestic, commercial, industrial and vehicle users in 15-plus distinct geographical areas. AGL, which is going great guns, also supplies compressed natural gas to the transport sector. Though a very small part of the Rs 20,000-crore group, the Ahmedabad-headquartered AGL is important to the business, thanks to its involvement in the daily lives of both employees and outside customers. The company changed its name to Adani Total Gas Ltd at the end of 2020, 15 years after it was incorporated, when French energy major Total took a stake of 37.4% – equal to its own, making it a joint-venture company. The remaining 25.2% is with public shareholders. “Passion, perseverance and self-belief enable you to overcome obstacles and deliver solutions that benefit the business and our consumers,” says Sandip Adani, Head, Techno Commercial, Adani Total Gas. Big brother Adani Green Energy is the world’s largest solar power developer and is in the process of completing the construction of its projects to meet its stated renewable energy capacity target of 45 GW in the next eight years.
The merger talk was in the air for years but, was put on the back burner over serious differences at the top. Finally, the merger between HDFC and HDFC Bank has happened. For the first time perhaps, a challenger of a fitting kind from the private sector appears to have arrived to counter the dominating State Bank of India. To that extent, the HDFC-HDFC Bank merger move is seen to herald a massive transformation in the Indian banking space. Will that edge the non-banking financial companies (NBFCs) out of the picture? Not really, say experts. For, there are plenty in India who are still either unserved or underserved. Why did it take a long while for the two to merge? People who matter know it but, none prefers to go on record for assorted reasons. Perhaps, the merger plan was waiting for the HDFC Bank’s founder-CEO Aditya Puri to serve out his term in October 2020. If sources are to go by, some 5-6 years back Deepak Parekh had mooted the idea of HDFC merging with HDFC Bank to create a big bank but Puri was disinclined. He wanted the two entities to operate separately. Perhaps, with his exit the whole plan was brought out from the cold storage. The merger has indeed reconfigured the banking turf in India.
The upcoming BMC elections will not be an ‘aam’ municipal referendum by any means. The BJP is determined to put all that it has at stake, to level scores with long-time friend-turned-foe, the Shiv Sena. The Sena is trying all the tricks of the trade to retain its Marathi Asmita and control over Aamchi Mumbai. The NCP is looking to expand its Mumbai base at the cost of senior partner Congress’ vote bank. The grand old party is also using all its might to stay relevant in the politics of the very city where it was born. Amidst all the scheming and planning that the city is silently witnessing, the AAP is using the grace period, by postponement of elections, to actively strengthen its organisation. AAP, the fourth largest party, has formed teams of devoted workers and volunteers in almost 100 wards. Its campaign will highlight the pathetic state of Mumbai’s roads, corruption in BMC and announce its plans for the health and education sectors. “We’ll fight to win and are getting tremendous support from Mumbaikars. People are really frustrated and fed up with these parties and their dirty politics. The only clean alternative they have is in AAP,” says Ruben Mascarenhas, the working president of AAP Mumbai. AAP is betting on youngsters and a majority of its candidates will be under 40 years old.
Is the new CEO of FedEx Raj Subramaniam just one more Indian CEO of an American corporation? This question elicited two divergent views, summed up aptly by Chidanand Rajghatta of Times Of India. One response is the blasé “Ho hum, another Indian”. The other: “What Indian? He is an American, who worked his way up.” Raj joins an exclusive club of over half a dozen PIOs who merited entry into the hall of fame thrown open by Google and Microsoft. Sundar Pichai and Satya Nadella are already part of the corporate power folklore. Other recent entrants include: IBM’s Arvind Krishna, Parag Agrawal of Twitter and Leela Nair of Chanel. Founder Fred Smith who spearheaded the FedEx operations for 50 years and saw its turnover touch $92 billion found that Raj, who has been with FedEx since 1991, was the ideal man to hand over the baton to. Thiruvananthapuram born Raj faces big challenges before him. E-Commerce has changed the whole ball game and, FedEx must enter this instant gratification, touch of a button business by changing its own avatar, from an Express Delivery Organization, hub & spoke, track & trace, but as part of that last mile delivery, the fulcrum of e-commerce. Clearly, Raj has to combine his experience at FedEx 1.0 and metamorphose into FedEx 2.0. Clearly Raj has a tall order to deliver.
A private-public partnership saw a plant come up at Thoothukudi in Tamil Nadu to produce ammonia and urea. In the 50 odd years of its existence, Southern Petrochemicals Industries Corporation (SPIC) has had a chequered history even as the A C Muthiah-piloted group became ambitious. Big investments in PFY and PTA (Spic Petro) and in a new fertilizer facility in Dubai saw money going down the sink. Things turned for the better post 2010 with a changeover at the helm. Now, Muthiah’s son Ashwin, who heads the company, has gone all out to ramp up capacity of ammonia and urea to almost global scales. To improve margins, it moved from naphtha to natural gas for its feedstock. For fund infusion, Ashwin roped in AM International of Singapore besides talking to lenders for debt restructuring. Result: Thoothukudi-based SPIC has turned around with its topline and bottom-line looking healthy. Unfortunately, another well run plant in Thoothukudi Sterlite Industries, part of the Vedanta Group had to shut shop over environmental issues. For the nine months ended December 2021, SPIC has turned in heart-warming results with a PAT of Rs 132 crore on the back of a topline of Rs 1,600 crore, both representing a big leap from the previous corresponding period. While things are certainly looking up for SPIC, the road ahead still sports many signs of caution!
Since winning the panchayat and urban body elections, Odisha Chief Minister Naveen Patnaik has been pulling out all the stops to kickstart Tata Steel’s Rs 5,000 crore Subarnarekha deep-sea all-weather port in Balasore district. He hopes to complete the project before the 2024 general election and, is moving quickly on the land acquisition front; with nearly 146 acres of land almost acquired. The state has already provided 700 acres of land for port construction near the Chaumukh seashore, Baliapal. However, for the construction of a new rail line from Amarda Road to the port at Chaumukh and widening of existing roads and creating new ones, it needs to acquire another 300 acres. According to Sudarshan Chakravarti, Collector & District Magistrate, Balasore “Of the 300 acres requirement of land 154 acres has already been acquired with the balance to be acquired soon.” Land acquisition may not be a problem as the government is paying a good compensation — three times more than the registered value. Tata’s project will have the first mover advantage over Adani Group which is setting up a green field port at Tajpur in West Bengal which is literally next door. When both ports become operational East India will emerge as the new regional maritime hub.
European hospitals say 80 % of Covid patients lose the sense of smell, not regaining that sensitivity even after recovery. When the sense of smell is gone, vital sensory cognition is lost too. The five crucial senses of cognition and life are now viewed in a new light, as marketers and manufacturers perceive newer horizons to tap, post pandemic. Aradhna Krishna, the Dwight F Benton Professor of Marketing at the Ross School of Business, University of Michigan cites the intricacies of our sensory reach that marketers are engaging with. Scents from the past and present possess a unique signature, sensory cues. “Smell is vital to our existence, essential for taste, even foretelling danger like smelling smoke or bad food.” The Harvard Business Review acknowledges her as “the foremost expert in the field of sensory marketing”. Her book, Customer Sense provides researched insight on how the five senses influence human buying behaviour. Her paper on Olfactory Imagery postulates that imagining/imaging odours affects human responses towards products. No wonder India with its cultural and gastronomic diversities is so amenable to marketing products that evoke a positive response. Now restaurants may simply market their signature Panneer Tikka or Kerala Chatti Meen Kuzhambu by opening a vent directly onto the streets and, the hungry will just follow the aroma trail for an actual taste of their drool worthy dish.
The Citi never sleeps. Citibank literally rode on this famous tag line for an increased mind share even as India was only just opening up to the world in the early 90s. The MNC bank left no stone unturned embarking on its aggressive business expansion. Somewhere along the line, however, the aggressive instinct for growth turned ugly and, Citibank went about issuing credit cards without any let or hindrance, to onboard lakhs of customers. Citibank had indeed re-laid the retail thrust in the Indian banking industry. Many in Indian industry did follow the Citi line but, somewhere along the way, Citi went overboard as an incident in the early 90s hit national headlines. In its zest to recover dues, its agents waylaid a top bureaucrat in the Central government on the Bombay-Pune Highway in a case of mistaken identity. The script went horribly wrong and Citi should have realised the `retail difficulty’ in India. It did slug it out for several seasons thereafter. Though it launched credit cards in India in 1987, Citi’s market share has slumped to 4% from 13% just a decade and, it has decided to sell its retail business to Axis Bank. After 119 years in India, Citi is restructuring and exiting the consumer banking business. Over the last few years was Citi out of sync in India?
Late DC Kothari was a tall name in the industrial landscape of Tamil Nadu. And, Kothari Industrial Corporation Ltd (KICL), the agro input (fertilisers and insecticides) company promoted by him, an iconic entity. After him, the onus fell upon son Pradip D Kothari but, it hasn’t been a smooth ride. He had to fend off incursions from cousin, the late Shyam Kothari (son-in-law of the late Dhirubhai Ambani). Pradip Kothari did succeed in barricading KICL. That legal battle in the 90s did make national headlines then. Much water has flown under the bridge since then. KICL now appears to have undergone a major overhaul and, sports new names on the management list. Of course, Pradip Kothari remains the Chairman. But it is driven by self-taught entrepreneur Jinnah Rafiq Ahmed, who is now the vice-chairman & MD of KICL. Parveen Roadways, his key venture, does quite a lot of work for the Southern Railways showing his experience with the contracts business model. Will this push the well-networked Ahmed to opt for contract manufacturing of fertilisers sold under the brand name Horse? This could see the company do well and get re-listed soon after internal issues saw its share trading being suspended many moons ago. Hopefully, investors holding KICL shares would soon find a window to cash out.
There are certain advantages in being an unlisted, closely-held company. Owners of such firms, however, may encounter irritants coming their way. A few shareholders, with marginal holdings could prove to be an avoidable hindrance. One such unlisted, closely-held company is attempting to implement share consolidation ostensibly to ease the cumbersome procedural formalities in administration. It is also touted as a goodwill exercise offering small shareholders an exit option. In some instances, small shareholders do not see any goodwill in such an exercise. Rather, the move is viewed as an ill-intentioned initiative to get them out cheaply. The city of Chennai has seen Chettinad Cement, a well-known player in the bulk commodity space, delist its shares a few summers ago. But that has put its industrialist-shareholder AC Muthiah in a spot. If sources are to be believed, Muthiah is unable to get rid of his shares in the company at a price he considers equitable. The owner of Chettinad Cement appears to be playing it cool for now. The business, it may be recalled, is run by MAM Ramaswamy’s adopted son MAMR Muthiah who has an old score to settle with AC Muthiah, whom he had accused of usurping the company assets while his father was ailing. Alternatively, he doesn’t feel the need to acquire more shares, sitting comfortably as he is with a majority holding.
The world has indeed termed this as an abrasive action by Russian President Vladimir Putin. The Russia-Ukraine military face-off has certainly thrown the nation states across the globe in a tailspin. The ongoing war between the two hostile neighbouring nations is bound to have far-reaching implications for the international community. Nearer home in Chennai, this business group is keeping its fingers crossed. The abrasive action of Putin has put this abrasive maker in a tight spot. Carborundum Universal (CUMI), a Murugappa Group company, it may be recalled, acquired 84% of the ordinary shares of Volzhsky Abrasive Works (VAW), located in the Volgograd Region of Russia, through its wholly-owned subsidiary, CUMI International Ltd., Cyprus, for a consideration of around $37 million sometime in 2007. The Russian venture fetched CUMI a PBT of Rs 1,350 million during 2020-21. The company expanded the capacity of the nitride bonded silicon carbide facility at VAW. This was ostensibly done to provide the company the capability to address the increasing global requirement of nitride bonded refractories for non-ferrous and waste-to-energy applications. Well, the dynamics have completely changed now. With the two countries at loggerheads, a sense of uncertainty has gripped Indian business in Russia. An abrasive action has put this abrasive maker in a bind, it appears.
Come April 1, 2022, the IPO market will witness three major changes that will immensely benefit retail investors. First, as per RBI stipulation, investors cannot borrow over Rs 1 crore from NBFCs to apply for an IPO. Second, SEBI has split the current HNI category into two. The first part, 1/3 of the bucket size of HNI portion, is for Rs 2-10 lakh and, the second bucket size of Rs 10 lakh and above is for HNI-Non-Institutional Investors. Third: change in lock-in period for anchor investors from current 30 days in two bucket groups: 50% shares will have 30-day lock-in and balance 50% for 90 days. Clearly, institutional investors are uncomfortable with the 90-day lock-in with good reason. The last three months saw all new age companies losing around 50% values since their listing. Allotment for HNI category, in case of oversubscription, would be similar to the retail category with one lot per applicant. For example, in the Rs 2 lakh plus category it would be just Rs 2 lakh. Similarly, it would be Rs 10 lakh in the Rs 10 lakh plus category. The new rules will see unrealistic over subscriptions by over 200-300 times disappear to more realistic levels in turn, making grey markets vanish. It will also force promoters to price IPOs more realistically.
A little-read news piece got buried in the avalanche of revelations on Chitra Ramkrishna, her shenanigans at the National Stock Exchange and more. The interesting news has lost relevance now thanks to the identity disclosure of Ramkrishna’s ‘Himalayan Guru’ – Anand Subramaniam — her right-hand man at the NSE. A couple of days before the bombshell caused a blast, the Maharashtra Andhashraddha Nirmoolan Samiti (superstition eradication committee), founded by the late rationalist Dr Narendra Dabholkar, had submitted a memorandum to the Central Bureau of Investigation (CBI), also Mumbai Police seeking the arrest of the NSE’s former CEO and MD under the Anti- Superstition and Black Magic Act. Pointing out that Subramanian’s appointment as the exchange’s COO in 2013 had cost the NSE Rs 5 crore, the Samiti said the entire case was an embarrassment for India, as a highly-educated person like Ramkrishna took advice from a self-proclaimed guru. “MANS has brought it to the notice of CBI and Police Commissioner Mumbai that according to the Act it is an offence to claim divine powers and deceive people on the basis of it,” the organisation had said. “The current case is a clear incidence of a person holding important public office working under the influence of superstitious beliefs and hence doing harm to the greater public good hence we have decided to take up this issue.”
The Odisha Electricity Regulatory Commission (OERC), currently hearing the annual revenue requirement to fix bulk supply price for 2022-23, was subtly asked by the state government to disallow tariff hikes sought by power utilities. The popular Naveen Patnaik government has told OERC to find a win-win solution for all stakeholders. “The balancing act of finding a solution without consumer tariff hikes is the prerogative of OERC, which is doable,” an industry expert says. The rationale for “no power tariff hikes”: The Four Tata Power DISCOMs in Odisha especially, TPWODL posted excellent results for the nine-month period in the current financial year. Their performances contributed to a total of Rs 600 crore regulatory surpluses. In the regulatory framework, DISCOMs are permitted pass through of reasonable expenses and only 16% return on equity (RoE) and hence, the possibility to adjust the Rs 600 crore revenue surplus of Tata DISCOMs suitably while accommodating pass through of genuine expenses of GRIDCO, OPTCL and other state generation companies (OHPC & OPGC) with no increase in retail tariffs for consumers in 2022-23. The quality of power supply and consumer services in the State are expected to improve with capital investment of Rs 2000 Cr by the Odisha Government over the next 2-3 years.
The fast unfolding drama around Chitra Ramkrishna, the erstwhile MD of NSE, has pushed the issue of Corporate Governance back into focus. Breached more than it is practiced, it is the most widely abused term in the corporate world. Instances are a dime a dozen of vociferous proponents of corporate governance gave it a go by to suit their own interests. A trip down memory lane reveals this hard truth. When co-founder NR Narayana Murthy returned to head Infosys again, he brought his son Rohan along with him! A revered personality in the corporate world, he subsequently turned activist of an unusual kind. He went ballistic in public against the Infosys board, triggering the ouster of chairman R Seshasayee. In like manner, it still remains a mystery how a member of the search panel for the appointment of a chairman for Tata Sons landed the coveted job for himself. The mystery deepened when Cyrus Mistry was unceremoniously thrown out subsequently. “How could I go against the Tatas?” an independent director put it succinctly. It is easy to preach but, difficult to practice. When it came to cutting his stake in his bank the banker, who headed the panel on corporate governance, prevaricated. Corporate governance appears to follow a “heads I win, tails you lose” maxim. NSE isn’t so unique experience after all.
Looks like there will be no let-up in the probe against the “mystery Yogi” who gave divine instructions to former MD & CEO of the National Stock Exchange, Chitra Ramkrishna. At an official weekend meeting, PM Narendra Modi made clear that investigations must be conducted thoroughly to delve into the depths (gehariyan) of the scam. This means Ramakrishna will not get away with pleading innocence for having taken instructions from a godman who resided in the Himalayas. The official keenness to get to the bottom of the story is also because Ramkrishna, a qualified CA, was connected with an influential political family, a father-son duo, from Tamil Nadu since 2012. It was this connection that helped her secure the coveted job in 2013. Sources close to Ramkrishna, keen to protect her, are peddling multiple theories including one, about the yogi being a finance ministry bureaucrat besides speculative assertions about him. He was probably a Karnataka cadre officer, once a close aide to the senior Tamil Nadu leader. Interestingly, the political class seems very keen to see a bureaucrat is made the fall guy in the Chitra Ramkrishna episode so it fails to impact their political space.
The Indian cricket field will soon witness a major turf war of a different kind, a battle for media and digital rights. Amazon and Reliance Industries, two corporate majors locked in a head-on battle for physical shopping space in Future Retail, will also flex their muscles to bid for the 2023-2027 IPL rights. Valuations have breached the stratosphere already with talk of bids reaching $7 billion dollars and, many other giants ready to do battle as well. The previous 5-year cycle that attracted a consolidated Rs 16,347.5 crore from Star-Disney ends with the 15th IPL featuring 10 teams and more matches than were on offer under the 8-team format. Disney-owned Star India may have to reach deep into its pockets to take on the global e-commerce giant Amazon with its Prime Video OTT pay channel, even as India’s industry and commerce behemoth Reliance, with a broadcasting arm in Viacom18, opens up its considerable war chest to bid for what is seen in broadcasting as an everyday Super Bowl with a 2.5 billion worldwide audience. The BCCI may unbundle the TV and digital rights. IPL has probably already factored in its Rs 7,000 crore a year rights earnings, which is believable as cricket is king in India and IPL dishes out magical live sport entertainment.
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.