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In his reply to the Motion of Thanks to the President’s address in the Lok Sabha, PM Narendra Modi was at his aggressive best as he savaged LoP Rahul Gandhi. From mocking the Congress leader and two members of his family for becoming MPs — mother Sonia and sister Priyanka — at the same time to turning “certain spaces into personal museums”. He was referring to the manner in which the Gandhi family maintains control over Indira Gandhi Memorial and had refused to share documents pertaining to the Rajiv Gandhi era with the Prime Ministers’ Museum. The PM said we have established the Prime Ministers’ Museum, where the legacy of every Prime Minister—from the first to my predecessors—has been honoured. “I urge their family members to visit it.” Taking a swipe at the three Gandhis who are all MPs, Modi said, “I pose an important question to the citizens through this House — have there even been three MPs simultaneously from the same family of SC community? I also ask, tell me if there ever were three MPs simultaneously from the same family belonging to the ST community…” There is a vast difference between their words and actions. However, the harshest jab was when Modi felt leaders have compulsions to raise questions on foreign policy to be taken seriously — he was referring to questions raised by both Rahul and Samajwadi Party chief Akhilesh Yadav on tensions with China. He asked them to read Bruce Riedel’s book JFK’s Forgotten Crisis— as it details discussions between India’s Nehru and the U.S. President John F Kennedy, revealing how foreign policy was handled during challenging times and the games played in its name. Congress leaders are apparently not amused by this suggestion.
Congress bossman Rahul Gandhi told Parliament that External Affairs Minister Dr S Jaishankar’s USA visit only sought an invite for PM Narendra Modi for the U.S. President Donald Trump’s oath ceremony. Jaishankar refuted RaGa’s averments, without revealing the true purpose after having accomplished never before witnessed outcomes. Highly placed sources reveal, “India’s MEA secured distinction of only nation’s representative holding bilateral discussions with the newly installed U.S. government both, before and after, official transition of power.” Dr Jaishankar didn’t elucidate beyond dismissing Gandhi’s tall tales to the Lok Sabha, but actually established grounds for PM Modi to ink U.S. deal for technology transfer regarding fifth/sixth generation fighter engines deliberately kept in abeyance over two years by erstwhile Biden administration. India will be on par though F35 fighter was doled out to Pakistan and, even poised to counter Chinese aviation capabilities with next generation fighters. Dr Jaishankar also held discussions with newly installed FBI director Kash Patel, National Intelligence Director Tulsi Gabbard over sensitive issues regarding Indian nationals targeted by earlier dispensation. Another positive outcome: Funding cut off for Gurpatwant Singh Panun, separatist pro-Khalistani rebel, creating aviation scares in India through threats of blowing up Indian commercial airliners. More covert results were achieved to become apparent sooner than later even as Rahul Gandhi termed Dr Jaishankar’s international statesmanship as mere kow-towing to U.S. hegemony.
Ever since mid-January when Bihar CM Nitish Kumar was accompanied by his son Nishant Kumar at a political function in Bakhtiyarpur, there has been a buzz that the JD(U)leader’s son would be taking a political plunge. The event was to pay tributes to freedom fighters, including Nitish’s father Ram Lakhan Singh, who too had participated in the freedom movement. Soon after the function, 50-year old Nishant, the only child of Nitish and his late wife Manju Sinha, told the local gathering that his father had put Bihar on the fast track of development and appealed to them to make him CM again. Nishant’s appeal came in the midst of reports that he was keeping indifferent health and had reduced public interaction. An engineer by training, Nishant had so far kept away from public glare. Raised by his mother, he is known to have spent time away from his father and dabbled in spiritualism. He came to live with his father only after his mother passed away in 2007. Those who have known the JD (U) supremo personally as well as politically feel with an indifferent health Nitish may no longer be in a position to even oppose entry of his son into politics much as he has always opposed dynastic politics. A section of JD(U) dominated by Kurmis is reportedly rooting for Nishant’s entry to perpetuate Nitish Kumar’s legacy; this section doesn’t care if it fits with Nitish Kumar’s vision of politics. It is being argued that JD(U) can’t survive without Nitish’s legacy. As for those competing against the towering stature of Nitish Kumar in Bihar — both the BJP and RJD — are also keen that a bumbling newbie and dynast Nishant does take the plunge and salvage JD(U). Ahead of assembly polls, JD(U) is likely to witness a churn.
What goes out seems to return to the same place. Well, how else could one view the unfolding scenario. Reports suggest that Aditya Birla Group-owned UltraTech Cement is in advanced talks to acquire Heidelberg Cement India. Heidelberg Cement India is the subsidiary of HeidelbergCement Group, Germany. It entered India in 2006 with the acquisition of erstwhile Mysore Cement, Cochin Cement and a JV with Indorama Cement. The company has plants at Damoh (MP), Jhansi (UP), and Ammasandra (Karnataka). If this acquisition happens, UltraTech may get Zuari Cements as well, which is a part of the Heidelberg Group. In such an eventuality, the Sitapuram plant of Zuari will also come under UltraTech. The Sitapuram plant was once with The India Cements (ICL). The India Cements got the Sitapuram plant as a bonus when it acquired Raasi Cement many years ago. Subsequently, India Cements sold the Sitapuram plant to Zuari to raise funds. The Parli grinding unit of India Cements, it may be recalled, was acquired by UltraTech. Since UltraTech has taken over India Cements, the Parli grinding unit has technically returned to its original place (since India Cements has now become a subsidiary of UltraTech). Well, the world is small after all. And, the world is indeed round!
An estimated 30% of the IAS administered Indian bureaucracy actively considers the VRS option. According to well-placed sources, “Last three years registered a spurt in the number of pending applications to exercise the VRS option, most officers still having over five years of service left. The handsome pension amount appears lucrative to many, including those put on notice by the Union government (and respective state governments like Maharashtra) for low productivity, efficiency and delinquent public service.” Majority of the pending applications seek the cushy handshake option, while those who fell foul of GOI evaluation parameters were told to consider exit plans sooner than resignation options later. Prime Minister Narendra Modi’s 1.0 and 2.0 tenures (between 2014 and 2024) had witnessed not only weeding out of senior officials through shortening of tenures under government service but also witnessed the lateral entry of professionals and industry domain specialists into government service. Similarly, several officials continue to perform government service notwithstanding their respective retirement from service due to their diligent and outstanding performance till retirement to include Pravin Pardeshi (CEO of MITRA). Others like former Chief Secretary of Maharashtra Dr Nitin Kareer are also expected to be tapped for active post-retirement service to the nation, sources reveal. As pen-pushing, non-productive Babus opt for early retirement the Maharashtra IAS fraternity anticipates similar cleansing of Maharashtra’s state secretariat that may be on the cards once again.
After all the hype over the low-cost DeepSeek artificial intelligence from China that seemed to be threatening the earlier model, doubts have begun to surface, at least in India, about its ability to continue posing a challenge to ChatGPT in the long term. The new app, which became the most-downloaded free app on the iOS App Store in the U.S. a fortnight after its launch on 10 January 2025, resulted in a steep fall in the share price of the more established Nvidia. While various users and reviewers have hailed it as a harbinger of the “global AI space race”, experts here are raising the old question of the longevity and reliability of anything made in China, especially when it is priced at a fraction of others in the same space. Says one leading infotech player, expressing the opinion of many in the field: “Like any data from China, nobody knows the real cost — it may be a whole lot higher than those incurred by Open AI.” Drawing a parallel with renewable energy, this expert points to a record 11 Gw of wind turbines commissioned years ago with turbines in almost all remote areas but no connection to the grid. “Renowned global consultants based in China whom I have met, always take any data from the Chinese government or otherwise from China with a pound of salt,” he adds. “It is perhaps disruptive news to pull the U.S. down. Let’s wait and see.” The Chinese company, established in Hangzhou, Zhejiang in 2023, is owned and funded by Chinese hedge fund High-Flyer, which develops open-source large language models (LLMs).
In recent times, Bollywood has seen a noticeable shift, with many newcomers struggling to leave a lasting impression on audiences. This decline can be traced back to a variety of factors, including the selection of projects that fail to resonate with viewers. Gone are the days when iconic films like Betaab, which introduced Sunny Deol or Rocky which launched Sanjay Dutt, captivated audiences and launched the careers of these stars. So too Jackie Shroff with Hero. In contrast, today’s newcomers like Suraj Pancholi, Siddhant Kapoor and Sasha Agha find themselves lost in films that do not provide them with the platform to showcase their talents effectively. The recent film Azaad featuring Aaman Devgan and Rasha Thadani serves as a case in point. Aaman Devgn, nephew of Ajay Devgn has struggled to make a significant impact, while Raveena Tandon’s daughter Rasha Thadani managed to capture some attention with her performance. Many of the films do not offer the newcomers a fair opportunity to shine; often focusing more on star power than on storytelling. For instance, in Azaad, the narrative centres around the titular horse rather than the lead pair, which diminishes the impact of the human characters. This misalignment can lead to a lack of engagement from the audience, making it difficult for the actors to connect with viewers. Aaman’s performance, despite being camera-friendly, lacks the emotional depth and histrionics that are often necessary to truly engage the audience. In contrast, Rasha stands out with her strong screen presence and impressive dance moves, showcasing a talent that could potentially elevate her career. Ultimately, even when a film does not resonate with audiences, a standout performance can create opportunities for newcomers to prove themselves.
The England captain Jos Buttler did not mince words on the matter of fast bowler Harshit Rana replacing Shivam Dube as the like-for-like “concussion substitute” in the fourth Twenty20 international in Pune. The scoreboard will show left-hander Dube having scored 53 off 34 balls with 7x 4s and 2x6s – a fine performance that went a long way in India posting a stiff 181 in 20 overs after being rocked by Saqib Mahmood’s three-wicket burst in his first over. It was Dube’s first international match in eight months. Rana, who replaced Dube after India chose to use the “Concussion substitute” rule at the innings break, ended up with flattering figures of 3 for 33, sending down his full quota of four overs. Rana took the wickets of Liam Livingstone, Jacob Bethell and Jamie Overton – all capable of giving the ball a solid whack. A pertinent question that cropped up was whether “Rana was a like-for-like’’ replacement for Dube, particularly as a fast bowler. In his previous 33 matches, Dube had sent down 45.3 overs and taken 11 wickets with a 3 for 30 as his best against Bangladesh in Nagpur in 2019. He did not bowl in 11 matches and went wicket-less in 15. Buttler disagreed with “Rana coming in for Dube” and wondered if Dube’s bowling speed had shot up by 25 miles per hour or if Rana’s batting had improved. On the face of it, Rana was a far from like-for-like replacement for Dube. India’s bowling coach, Morne Morkel, explained that the team forwarded Rana’s name and the match referee, Javagal Srinath approved it. The unsavoury event will compel the ICC to mull over the “Concussion substitute” rule.
Armed with a landslide majority in Maharashtra, the BJP, it is learnt, is now strongly pushing its coalition partners up against the wall. Not only has it launched a strong attack against Ajit Pawar’ party deputy leader Dhananjay Munde but it is keeping Eknath Shinde on the edge too. While the knives have been sharpened against controversial minister Dhananjay Munde demanding his resignation for the alleged involvement of his aide in the murder of Beed sarpanch Santosh Deshmukh. Munde and his party have been resisting and fighting it against all odds. While Ajit Pawar may have strongly backed Munde for now, he realises that the BJP may not stop at him and could launch fresh salvo against his other deputies. Hence, Pawar has directed his men to maintain a clean slate and even demanded that freshers be vetted before giving entry in his party. His contemporary, Eknath Shinde too is not having it easy with BJP ministers like Ganesh Naik eyeing his Thane stronghold and launching a worker engagement campaign clearly with an eye on the forthcoming local body polls. While Shinde chose to brush aside concerns, his workers have threatened to do a quid pro quo by launching similar exercises in BJP’s constituencies. Shinde did not attend the cabinet meeting last week, while Munde is believed to have left mid-way. The BJP strategy seems to be to keep the coalition partners constantly on the edge.
The year 1952 saw the release of a cult movie and a classic coming together of two names that shaped Dravidian cinema indelibly. A talented writer from Thirukkuvalai …the indomitable M Karunanidhi (DMK founder) and a firebrand actor who set the template for Tamil cinema…Sivaji Ganesan. These two cinema debutants made Parasakthi, an evergreen movie still remembered by connoisseurs of this powerful medium. Suddenly, Parasakthi is in the news. Two Kollywood producers are claiming the title Parasakthi. Vijay Antony (actor-producer-director-music director) claims that his 25th movie under production, Sakti Thirumagan has been already registered as Parasakthi for its Telugu version in July 2024. His posters were splashed on X. Imagine the shock that Town Pictures and avant garde director Sudha Kongara got on hearing that their Sivakarthikeyan’s 25th film Parasakthi has an ostensible me too. This was no filmi coincidence. A high decibel legal battle is being averted by Akash Bhaskaran, emissary of Kongara who met Antony to resolve the issue. AVM Pictures also endorsed that the title was given to Kongara’s team and all concerned were just heaving a sigh of relief. Then for Kongara trouble came from an entirely unexpected quarter. The legal heirs of Perumal Mudaliar, National Pictures, original Parasakthi producers decided to digitalise the 1952 hit and re-release it. This claims that the Krishnan Panju directed original has allotted only distribution rights to AVN for a few areas, that no other house could use the title. Avowedly, the Sivaji craze and the Kalaignar charisma guarantee big crowds.
Mumbai’s top five realty players may come together to redevelop 6.2 million sqft in to house 5,300 tenants at Motilal Nagar in Goregaon West, according to a leading real estate website, Squarefeatindia. This is one of the biggest redevelopment projects of the Maharashtra Housing and Area Development Authority (MHADA), a nodal agency that focuses on affordable housing in the state. According to the website on November 15, a pre-bid meeting was held between the five realty players and MHADA team at its headquarters in Bandra. All the five players have evinced interest to develop this huge parcel of land. All the five real estate companies which participated are major players in the country and have capabilities to execute large scale projects. One player is involved in redeveloping BDD Chawls in Worli, the other is a front runner for the Dharavi redevelopment project while the third player has been doing MHADA’s affordable housing projects for years now. The deadline to complete the project is 84 months after the players win the bid. The technical bid will open on December 14.
At the G20 climate summit held in Glasgow, Prime Minister Narendra Modi must have felt like Midas, reincarnated. Heads I win, tails you lose. This last chance for reigning in global warming saw a new phase of tu tu mein mein. And this blame game and tug of opinion between the have nations and have nots couldn’t have been better articulated than what Andy Mukherjee, columnist and analyst wrote for Bloomberg: “The real action is happening in NW Gujarat, not Glasgow.” Modi has two of the most ambitious, richest and dedicated fighters in the corporate world, racing for supremacy – Mukesh Ambani, 64 and Gautam Adani, 59. Like quick change Houdini, Ambani (with world’s biggest refining complex at Jamnagar spewing emissions) has already committed investments worth $36 billion in four sunrise domains: solar panels, batteries, green hydrogen and fuel cells. Adani had a head start with his coal powered plants (not seen cool by environment guardians); his 360 degree turn is for a 20,000 MW gigantic integrated solar wind and hybrid electricity empire. The hydrogen generation units will take off like the proverbial balloons, decarbonising India’s fuel needs for the future. Now is it crystal clear, Modi wins any which way. It just means custom making certain policies for the Atlas corporations. Is anyone complaining?
The competition for survival has already begun with the West Bengal government setting up the Rs 15,000-crore greenfield Tajpur port project in the state — positioned next door to Tata Steel’s Rs 5,000-crore Subarnarekha port project at Chaumukh in Balasore district in Odisha. The Odisha government is moving fast. According to K Sudarshan Chakravarty, Collector and District Magistrate, Balasore: “The assignment of providing over 1,000 acres to Tata’s port project will be completed by November 2021.” With regard to the rail and road corridor, and land requirement of 197 acres, 40 acres have already been acquired. Tatas will begin project work sometime in January 2022. As for Tajpur port in WB, sources say that when commissioned this will be a major monopoly port in eastern India, accommodating Cape size vessels. Tajpur port has the backing of Port of Singapore, DP World and other big consortium and conglomerates who have expressed interest in the deep sea port project. Major business groups from W Bengal like Rashmi Group, Shyam Steel, Super Steel and companies from Kharagpur, Asansol, have shown interest to support Tajpur port project, especially steel and coke logistics business. Construction of Tajpur port will begin by mid-2023 soon. Sources say that the Tata Group which is now focussing on its prized Air India acquisition may go slow on the Odisha port project for now. When contacted, Tatas declined to comment.
What is in a name? Reputation. When this TVS firm wanted to stop accepting deposits, there was a huge public outcry. If you don’t, where will we go? That was the reaction of senior citizens then. For Chenniates, Sundaram Finance Ltd (SFL) has been a part and parcel of their life. SFL and Chennai are inseparably entwined. SFL has been hosting the annual Mylapore festival for very many years now. And, it has been holding a mikeless concert every first Sunday of a month for over a decade now at the Nageswara Park to provide kids a platform to demonstrate their skills. Covid-19 however has changed everything. In the new normal social distancing world, SFL has its job cut out. It is on a mission mode. It wants people to get fully vaccinated. It has launched a music video ‘Oosingo’, composed by singer Anirudh Ravichander and written by lyricist Arivarasu Kalainesan. Celebrity-influencers too figure in the video. “We are in the last mile in our fight against Covid,” says Harsha Viji, executive vice-chairman of SFL. Well, this TVS company has the experience in providing last-mile connectivity in the vehicle finance segment too. It has budgeted Rs 10 crore for the public service programme. Trust, thy name is SFL.
Indian Premier League (IPL), an estimated $7 billion property, became richer by close to $1.5 billion as the bids for two new teams touched Rs 12,715 crore. Kolkata-based Sanjiv Goenka, who had owned the Pune IPL team for two years, bid a phenomenal Rs 7,090 crore and chose the AB Vajpayee stadium in Lucknow as his team’s base while CVC Capital, a US firm which was running Formula 1 racing till recently, got India’s biggest stadium in Ahmedabad. Annually, the new team bids would fetch an additional Rs 1,200 crore to BCCI for next 10 years. But does shelling out so much money as a team’s franchise fee make business sense? Goenka thinks so, though industry estimates put prospective losses at around Rs 350 crore per year for the Lucknow franchise even if the team gets Rs 350 crore from the IPL central pool. IPL figures show that teams are currently earning around Rs 200 crore a year from central pool, Rs 100 crore from gate collection besides sponsorship and merchandising. The profitability prospects for the teams are likely to brighten with the next IPL media rights auction – and they could be big winners in the valuation game with individual IP teams rated as high as $1 billion. But, experts hold that the new teams may have to withstand losses even if the future share of central pool revenues is higher when the new IPL bidding cycle for media rights kick in.
This Karwachauth saw more than the moon through the sieve of tradition. It saw the trampling of a tradition. Dabur aired this in-your-face ad about a lesbian couple, their beautifying for the sacred Karwachauth, when married women fast the whole day (Nirjal) for the longevity of the spouse. Dabur planned to sneak in a Fem ad, and also legitimise this relationship by presumably the mother of the gay partner. She is shown handing over costly sarees and jewellery, and blessing to the one who is the “wife spouse”! When netizens reacted with revulsion, Dabur withdrew the ad with an apology. However advanced sexual preferences are in the closet, there are certain mores you don’t trample on with impunity. Bhavesh Talreja, founder of Mobile Advertising platform, Global Media said, “All companies live and thrive under a political system….” Interestingly, a plea about same sex marriage had come up for hearing in the Delhi High Court…. timing, timing is everything. Tushar Mehta, Solicitor General of India, argued that same sex marriages cannot be brought under the umbrella of the Hindu Marriage Act. The Government’s stand is that marriage is permissible only between a biological man and woman. Karwachauth is a premium event in the calendar of marketers, who must acknowledge that the society is still not ready for such woke gyan and experiments. Dabur seems to have got the message: don’t mess with our culture!
ICAI President Nihar N Jambusaria has stirred a hornet’s nest. In a signed message published in the October issue of The Chartered Accountant journal, he exhorted the members of India’s apex body for chartered accountants to adopt Hindi in their work and interactions with other stakeholders. For him, Hindi is a rajbhasha (official language). And, he wants his fellow CAs to promote Hindi. His appeal has virtually kicked up a row with many senior CAs, especially in the state of Tamil Nadu, warning the ICAI chief of the adverse fall-out of his action. Should ICAI be promoting a language? Or, should it be guiding the CA fraternity as a whole? The debate has already picked up steam on social media. Predictably, his move has drawn political reaction as well. A sitting MP from Madurai, S Venkatesan, has taken to Twitter to condemn the ICAI chief. “May be it (Hindi) is your mother tongue but not for all,” he tweeted. He has already dashed off a letter to ICAI, opposing the move. “Tamil Nadu would resist imposition (of Hindi),” Venkatesan asserted. The CA fraternity in Tamil Nadu is seething in anger. ICAI could live without such controversy. And, Jambusaria could have avoided playing to galleries (on September 14 being marked as Hindi Diwas). He reportedly clarified: “It (Hindi) is a choice… If you want to write in whatever language you want, there is no restriction on anybody.”
Indian Premier League (IPL) has proved to be a heady mix of sports, entertainment, and business. Not surprisingly, there is quite an interest around it. Sanjiv Goenka-led RPSG group is new franchisee for Lucknow and PE player CVC Capital for Ahmedabad. Indeed, the sport has changed. Is it cricket? Well, the debate has been on for a long while now. But N Srinivasan, the indefatigable former boss of Board of Control for Cricket in India, has a different take on his IPL team. “We look at CSK (Chennai Super Kings) as a pure sport,” says Srinivasan, who is the vice-chairman and MD of ICL (India Cements Ltd). ICL owned the IPL franchise team CSK from inception in 2008 till 2014, when the ownership was transferred to Chennai Super Kings Ltd. “CSK is a sport and never a business for us,” he makes it clear. Srinivasan is the fulcrum around both ICL and CSK. “I think my personality has rubbed off in CSK,” he says. Both at ICL and BCCI, he had endured the worst. “A less strong person would have wilted,” he feels. “Our reaction to victory and loss is the same. When we win we are happy in our heart. We don’t need to go out and blow the trumpet,” he said. Indeed, CSK will remain an inseparable part of Srinivasan.
The electric car maker and space enthusiast Elon Musk is on course to become the world’s first trillionaire. Analysts at investment banks are going gaga over the prospect of a trillionaire on earth as Tesla raced to a record quarter with revenues of $13.8 billion and profits of $3.7 billion despite a global chip shortage cramping car production. The potential of Musk’s rocket company SpaceX places Musk in pole position for gathering wealth to a stupendous trillion dollars. Thanks to its surging share price which went up by 18% just this year, Tesla is still the main driver behind Musk’s wealth whereas SpaceX comprises only around 17% of his $241.4bn fortune, according to Bloomberg’s Billionaire Index. While SpaceX comprises multiple different companies, from earth observation and space infrastructure to deep-space exploration and other industries, his satellite communications business Starlink is behind a $200-billion valuation estimate. It is almost like Star Wars now as satellite broadband market players are launching satellite constellations that will blanket the earth with high-speed connections. Tomorrow’s broadband is likely to come down to earth from satellites, replacing expensive optic fibre cable laying. The race for number one ranking on the personal wealth index is loaded in favour of Musk who has made so many sunrise industries viable, most of all the Tesla electric car that the world laughed at when it made its debut.
After being pulled up by Odisha Assembly Speaker Suryanarayan Patra for frequent power cuts, the Tata Power has got into the act to ensure uninterrupted and quality power supply through its four distribution companies in the state. The company has firmed up ambitious investment plans. According to Sanjay Banga, President (T&D), Tata Power, the company will spend Rs 1,200-1,500 crore for each Discom in the next five years (around Rs 5,000 crore for four discoms). The capex for 2021-22 has already been finalized and submitted to the OERC. Most of the Capex budget will go for reliability improvement, loss reduction and technology upgradation. In the coming winter of 2021, TPC will go in for planned outages – a new initiative to work upon preventive maintenance. Banga says from March 2022 onwards, TPC customers in Odisha will experience better power supply connection with fewer trippings as Tata Power will spend Rs 300 crore towards preventive maintenance to address summer season reliability. “Odisha power reliability will be as good as Mumbai and Delhi sometime in 2023,” Banga added. It is learnt that the power networks, which have structural weakness as experienced in Odisha due to redundancy of single-source supply, will be changed to multiple-source power supply assurance. This will ensure reliable power. Tata Power has 51% stake in the Odisha entity with management control and the state-owned GRIDCO has 49% equity stake.
In a major boost to UP tourism, Prime Minister Narendra Modi is all set to open Kushinagar International Airport on October 20. Kushinagar is of significance to Buddhists all over the world as it is here that Lord Buddha is believed to have attained Mahaparinirvana after his death (2500 BE). It is famous for the Reclining Buddha image inside the Parinirvana Stupa. Prime Minister will participate in an event, organized to mark Abhidhamma Day. The day symbolises the end of three-month rainy retreat – Varshavaas or Vassa – for the Buddhist Monks, during which they stay at one place in vihara & monastery and pray. The event will also be attended by eminent Monks from Sri Lanka, Thailand, Myanmar, South Korea, Nepal, Bhutan and Cambodia, as well as Ambassadors of various countries. The inauguration of Kushinagar International Airport will be marked by the landing of flight from Colombo, Sri Lanka. Led by Namal Rajapaksa, son of Prime Minister Mahinda Rajapaksa, the Lankan delegation of over 100 Buddhist monks and dignitaries, including the 12-member Holy Relic entourage, is bringing the Holy Buddha Relics for Exposition. Built at an estimated cost of Rs 260 crore, the Kushinagar International Airport will facilitate domestic and international pilgrims to visit the Mahaparinirvana-sthal of Lord Buddha. The airport will also serve nearby districts of Uttar Pradesh and Bihar.
Sankar Cement and Coromandel Cement of India Cements have been part of some of the country’s iconic structures. Sankar Cement is associated with the building of Idukki Dam in Kerala, Pamban Bridge in Tamil Nadu and Swami Vivekananda Rock Memorial in Kanyakumari. Infosys Building in Bengaluru and Rajiv Gandhi International Sports Stadium in Hyderabad were built with Coromandel cement. Well, Sankar and Coromandel are trusted brands in the cement industry for many summers and belong to 75-year-old India Cements Ltd (ICL), a leader in south India. With such history behind it, the ICL management, led by N Srinivasan, vice chairman & MD, is now engaged in the process of reconfiguring the brand strategy. The time appears to have arrived now. With the Chennai Super Kings having a dream run in the ongoing edition of the Indian Premier League (IPL), team ICL chose to celebrate Platinum jubilee of the company with Captain Cool Dhoni & his boys and the dealers in a live engagement. This is perhaps the first and unique exercise to leverage CSK to promote India Cements, which is the principal sponsor of Chennai Super Kings. The focus now is on creating a distinct and strong corporate brand identity for India Cements. Iconic cement brands are to be promoted around this corporate brand among dealers and influencers. Well, the pitch is clear indeed!
In what could be dangerous for police forces, Apple has launched encrypted browsing at the touch of a switch on its iPhones, iPads, laptops and desktop computers. It is called the Private Relay feature and criminals could have a free run on it with law enforcement rendered helpless in tracking them. Broadband and mobile companies may be unable to assist police investigations into dangerous suspects like terrorists or child abusers. Hitherto, criminals had to be extremely computer savvy to use the DarkNet to carry out their nefarious activities. With all Apple devices giving people encrypted protection, it could be a virtual invitation for the criminally minded to use them with the anonymity they seek in working the Internet. As technology improves to offer the hiding of digital footprints, investigating authorities might struggle even if Apple is offering to “respond productively” to any police requests for information. When people browse the web, their browser takes them directly to the website they seek, leaving a digital footprint with their broadband or mobile operator. Apple’s Private Relay service uses technology similar to the “dark web”, to ping people’s traffic between different servers so no one entity can see where they have been. Even Apple will not be able to see who you are either and what sites you are visiting.
When things are going down, this regulator too decides to head south! Well, the RBI, yet again, has chosen to look for talents in the south to reset a couple of recalcitrant NBFCs. This time around, the RBI has brought in two stalwarts from the south to assist the newly-appointed administrator of Srei Infrastructure Finance and Srei Equipment Finance. The boards of these two were superseded by the RBI on October 4, 2021. R Subramaniakumar, administrator of Dewan Housing Finance Corporation (DHFL), and TT Srinivasaraghavan, former MD, Sundaram Finance, have been included in the three-member advisory committee to help Rajneesh Sharma, ex-Chief General Manager, Bank of Baroda, as the administrator of these two companies. Since November 2019, Subramaniakumar, former MD & CEO Indian Overseas Bank, has been an administrator of DHFL. After many twists and turns, the debt resolution plan submitted by Piramal Group for DHFL has been finally approved by the National Company Law Tribunal. Subramaniakumar, in fact, was driving IOB during its critical phase. A few days ago, IOB came out of the Prompt Corrective Action framework. IOB was placed under PCA in 2015. Srinivasaraghavan is a highly respected personality in the NBFC world. And he piloted Sundaram Finance for many years with a sense of dedication and unalloyed commitment. The south has a nice side to its story after all.
Shareholder activism has been gaining currency and managements have to think twice before proposing resolutions to be approved and voted by shareholders. SEBI is also ensuring that it becomes difficult for promoters to push anything just because of their majority stake. For every negative vote, you now need three positive votes to approve the resolution. In some cases, the promoter is not allowed to vote and the minority shareholders decide the outcome. Readers would recall that Eicher Motor shareholders rejected a pay hike to Sidharth Lal, its MD & CEO. Similarly, IDFC shareholders rejected the reappointment of Vinod Rai as independent director. In the case of Zee Entertainment, two directors stepped down on the eve of the AGM as proxy advisors had asked the shareholders to vote them out. Meanwhile, the company which announced a non-binding agreement sale to Sony Entertainment has been directed by NCLT Mumbai bench to consider shareholder Invesco’s request for EGM to oust MD Punit Goenka. Jindal Steel & Power wants its shareholders to approve payment of one-time remuneration to its four independent directors. Proxy holders are advising shareholders to oppose the same as it violates terms of an independent director. Further an investor has rejected the reappointment of Shallu Jindal, wife of Naveen Jindal and a director on the board of the company for nine years. Indeed, it is a tough time for promoters.
Technocrat KR Nagarajan, Founder CEO of Tiruppur-based Ramraj Cotton, is the quintessential serendipitous entrepreneur. The story of how this simple but canny and savvy man turned a failed investment into one of the most visible brands is the stuff B School case studies are made of. In the last three decades, he has created a strong brand equity out of the simple dhoti that it has now become fashionable, at least in the south, to be seen wearing dazzling white dhoti and shirts. Those who had some reservations wearing a dhoti got it over when they saw Congress heavyweight Harvard educated P Chidambaram quelling many a fashion baiter with his majestic dhoti walks in Parliament. Ramraj Cotton which makes dhotis, shirts, inner wears may soon cross the Rs 1,000-crore turnover mark. The company has had film stars endorsing its brand, the latest brand ambassador being Rana Dagubatti. Nagarajan has always been looking for innovative ways to promote his brand from time to time. And he found one on September 22, 2021. On that day, Tamil Nadu’s dailies carried Ramraj Cotton ad with Mahatma Gandhi’s photo. The ad said: “This day, 100 years back for the first time in Madurai. The Mahatma made Dhoti the ‘Attire of His Identity’. Ramraj celebrates the occasion & salutes the Mahatma.” Bang for the buck one would say.
The 60-storeyed Raheja Artesia tower located at Mumbai’s tony address Worli Sea Face developed by K Raheja Corp seems to be attracting who’s who of the corporate world. The latest to join the list of illustrious buyers is the Kolkata-based industrialist Harshavardhan Neotia of AmbujaNeotia Group, according to Square Feat India, a leading real estate news website. Neotia, who is responsible for landmark projects in and around Kolkata, has, along with his daughter Paroma, bought 3,064 square ft property along with three car parks for Rs 23.89 crore. This project has been attracting any number of HNI buyers. HDFC Securities MD & CEO Dhiraj Relli and wife Archana forked out Rs 30.31 crore to buy an apartment. HDFC’s MD & CEO Keki Mistry paid Rs 41.23 crore and Smita D Parekh, wife of HDFC Chairman Deepak Parekh, paid Rs 50 crore. What makes it very reassuring for buyers is that the developer of this prestigious property, Raheja’s family, have bought three duplexes comprising 18 flats and 42 car parking spaces for Rs 427.81 crore. Effectively, Chandru Raheja, Chairman of K Raheja and his two sons Ravi and Neel, have bought five floors between them.
Tata Sons’ bid for debt-laden national carrier Air India has much to do with its legacy, mostly linked to the group’s patriarch JRD Tata, than just being a business decision. But why did Tatas turn a Nelsons’ eye to Jet Airways, another beleaguered carrier which got all approvals overnight by the Civil Aviation to start operations from January 2022? That’s one topic on which many articles and books have been written on over the years. Even the movie Udaan (Soorarai Pottru in Tamil) had a passing reference. The story goes, in 1997, the then civil aviation minister CM Ibrahim scuttled Tata group’s plan to start an airline jointly with Singapore Airlines (SIA). This was allegedly to support Naresh Goyal’s Jet Airways. The blocking of its application by the minister surprised Ratan Tata as he was about to close the deal with SIA. Perhaps, that bitter experience may have kept the Tatas from bidding for Jet Airways, insiders say. The group already holds stakes in two carriers – 83.67% in AirAsia India and 51% in Tata SIA Airlines (operating as Vistara) – and the acquisition of Air India will help the group to dominate the skies. The group pioneered India’s aviation with Tata Air Service in 1932 which became Air India in 1953 after it was nationalised. If Tatas win Air India then the wheel would have come full circle.
The general perception is that NRIs buy properties in India more for investment and less for self-use. Not anymore, according to Square Feat India, a leading website focusing on India’s real estate sector. In a significant trend reversal post-Covid-19, a much higher percentage of NRI respondents in the latest CII-ANAROCK Consumer Sentiment survey are scouting for properties for self-use, notes the portal. At least 53% of NRI respondents who will buy properties in India in the coming months buy for end-use, 47% for investment for investment. The pre-Covid survey in H1 2019 put this figure at 32% for self-use and 68% for investment. So what’s changing this trend? One major factor influencing this change is that many NRIs are keen to return to India amid the pandemic uncertainties and dwindling job prospects globally. Interestingly, the website says the top seven cities – Bengaluru, Pune, Chennai, MMR, NCR, Hyderabad and Kolkata — are where the NRIs are mainly focused. Here once again 48% of NRIs preferred 3BHKs, 28% 2BHKs while 24% preferred 4BHKs. That NRIs are coming back and buying properties certainly augurs well for the country’s real estate sector badly hit by Covid-19.
India’s stock markets are on a roll and will continue to keep the current momentum at least till March next year, with sprouts of recovery being visible in line with accelerated vaccination drive; and as fears of the pandemic have begun to subside. An expected rise in the government spending will also give a fillip to the capital good stocks further, says Aditya Birla Sun Life Asset Management Company Managing Director and CEO A Balasubramanian to shortpost.in. The number of Initial Public Offering (IPO) launches would also continue to maintain the pace with several “robust” companies willing to test the primary market. According to Aditya Birla Sun Life AMC, India’s fourth-largest money manager, information technology is the best sector in the current context with pharmaceuticals and capital goods quite close to it in terms of real returns. Bala, as he is fondly known in the industry, also expects a consolidation in the fast-moving consumer goods space. The market should remain “well-supported” in the coming months, driven by buoyant demand for Indian assets from international investors. The government would also shift its stimulus packages (which now completely focuses on end consumers and social causes) to core sector and infrastructure spending, and engaging the private sector more closely, he added. The Third Wave of pandemic, if it comes, would be the parting wave both for the markets and the general economy at large.
An acute shortage of iron ore is hurting Odisha’s small businesses badly. Iron ore production in Odisha has dropped by over 31-34 million tonnes in 2021-22 to around 110 mn tonnes presently. The shortage has particularly hit small and medium scale industries (SMEs) who do not have captive mines and are dependent on iron ore supplies from the open market to run their plants. Odisha accounts for half of India’s iron ore production; and the state is under pressure to ensure supplies with leading industry bodies appealing for timely intervention of the state government as well as the Ministry of Steel & Mines. The challenge for the government is to address the supply shortages as well as contain the unviable price rise of the critical raw material. Production increase is the only solution to address the current supply-demand mismatch, says Vipin Gupta, Director, Utkal Metalics. He adds: “This responsibility falls on the Odisha Mining Corporation (OMC), a state government undertaking whose role in this regard is cut out. They will have to ramp up efficiency and production being the largest state-owned mining corporation.” Industry members hold that the OMC also needs to come out with a policy not to allow captive miners to participate in OMC’s auction bidding process.
Adar Poonawalla, the MD of Serum Institute Of India, is on a takeover spree. It recently took over Magma Fincop (AUM as on June 30 was Rs 14,250 crore) for an undisclosed amount. The company has been renamed Poonawalla Fincorp. It is already infusing capital and repricing loans. It has drawn up plans to grow between 25-30% annually. Recently, it acquired a 50% stake in Schott Kaisa, a JV with the German company from its former owners Kairu Dadachanji and Shapoor Mistry. Schott is into pharma packaging goods including vials which are used in the distribution of vaccines. Insiders believe this is just the beginning and more inorganic growth avenues are being pursued to enable Poonawalla to diversify from vaccine makers to a multifaceted group with interests in finance, manufacturing across sectors and healthcare.
The 100-year-old Thoothukudi-based Tamilnad Mercantile Bank (TMB) has always made for a heady cocktail. Incorporated as Nadar Bank Limited on May 11, 1921, it underwent a name change on November 27, 1962. Since then, it has come to be known as Tamilnad Mercantile Bank Limited. Promoted by the Nadar community, the bank has often found itself at the centre of news. The community bank hit national headlines post-liberalisation in the 90s when the Ruias of the Essar group acquired TMB shares by cashing in on the internecine quarrel within the promoter-groups. But the Ruias faced resistance. And, the Reserve Bank of India, too, was cool to their entry into the banking space. The acquisition of TMB shares by the Ruias has time and again kicked up intense political battle in Tamil Nadu with parties of all hues, picking cudgels on behalf of the Nadar community to reclaim TMB. The Ruias exited by selling the TMB shares to serial entrepreneur C. Sivasankaran as sale consideration for buying the Delhi cellular licence from him. He, too, had to exit after a peace was brokered during the Vajpayee regime. Ramesh Vagal-led (former Pepsico India head) group chipped in to buy a part of TMB shares. Still mired in legal rows, the bank has now plans to go public. A community bank is getting a new tag now.
The over 100-year-old TVS group is going through a transformation of a significant kind. It just underwent a smooth reorganisation. This saw four promoter-families aligning the ownership of different companies with the arms of the family that managed them. While this caught many by surprise, something else – a big one, at that – too is quietly happening at the TVS. And this has largely gone unnoticed. Is it becoming a truly Indian MNC conglomerate? Be it manufacturing or financial services, the foreign investors’ presence is fast evaporating. Global majors have all cashed out of the group by selling their holdings to the respective TVS companies. It all began in mid-90s with Abex Corporation exiting Sundaram Abex which became Sundaram Brake Linings. Later, Suzuki quit the two-wheeler joint venture which became TVS Motor. TRW, too, went out of Lucas TVS. In the last one year, the group saw Brakes India and Wheels India buying out the stake of foreign partners. Also, foreign partners in the insurance, housing finance and mutual finance ventures of Sundaram Finance have exited. More recently, TVS Supply Solutions has bought out the Canadian pension fund, CDPQ. Now, the only prominent JV in operation is Delphi-TVS, a JV of Lucas TVS. Group patriarch Suresh Krishna always talked of Indian MNCs. Well, TVS is on track.
The first phase of Subarnarekha Port, a joint venture between Tata Steel and Creative Port Development located in Odisha, is complete. This project, whose foundation stone was laid in 2019 by the Odisha Chief Minister Naveen Patnaik, seems to be on the investment radar of many companies. Sources say several of the companies are keen to invest in the ports’ berthing facility designed to handle all kinds of vessels — Panama, Capesize, Super Capesize and Containerised cargo. With the completion of the first phase the port’s handling capacity stands at 25 MTPA. In phase 2, this capacity will be ramped up to 35 MTPA. The total cost of setting up this port spread over 1,398 acres is around Rs 5,000 crore. The state government has already handed over 692.68 acre of land and the balance 705.35 acres will also be made available soon. Additionally, land requirements for road and rail connectivity are also being planned. When fully operational, Subarnarekha Port situated next door to the states of Jharkhand and West Bengal will play a major role in logistic cost sustenance and economic development of the state.
SEBI is said to be finalizing revised guidelines to pave the entry of private equity firms in the AMC business. Currently there are two to three mutual funds which are reportedly looking to get out at a decent price. L&T Mutual Fund is one of them. The 12th largest fund by the AUM size, L&T Mutual Fund manages Rs 58,000 crore worth of assets. IDFC Mutual Fund is another fund which is being eyed by the entrants wanting to get into the mutual fund space. They reckon with ESG schemes picking up, investors will be keen to look at avenues to park funds in these schemes. One of the potential private equity companies looking keenly at getting into the Indian mutual industry is Blackstone. It is believed that once regulators permit, they will be moving quickly to take a stake in the AMC of L&T and IDFC.
With rumours flying thick and fast, it is now reliably learnt that the Tata Sons, the holding company of the Tata Group, is in no hurry to call a board meeting to decide on the second term for its Chairman N Chandrasekaran. This means that Tata Sons is unlikely to hold a board meeting before September 14, 2021, the date of its virtual annual general meeting (AGM). Generally, a company’s board takes a call on providing an extension to its top brass, and then puts it to vote at AGMs. According to sources in Bombay House, the headquarters of the Tata Group, Chandrasekaran’s tenure officially ends next year — February 2022 to be precise. Between now and then, there is a lot the chairman is entrusted with, and hence this won’t be an appropriate time to decide on his second term. Tata Sons’ board has the luxury of time on its hand, another six to seven months to decide on Chandra’s – as the 58-year-old is fondly called – second term. With many insiders and industry watchers expecting some announcements on September 14, however, the virtual AGM would be a keenly awaited event.
Sony Television’s marquee programme Kaun Banega Crorepati, hosted by Amitabh Bachchan, is back. And despite Covid-19 pandemic hitting the economy hard, the sponsors are more than eager to sponsor this longest running reality show as it continues to have a huge draw across all sections of the society. Already 11 sponsors have been lined up for Season 13. The differentiated factor this season is the use of hi-tech technology, graphics and Artificial Intelligence. And of course, in a major break from the pandemic led restrictions, the audience is back in the studio this season. The show is one the biggest revenue churners for SET. Media buyers estimate that Sony charges upwards of Rs 4 lakh for a 10-second spot. It is around Rs 40 crore for presenting sponsors, Rs 16 -20 crore for associate sponsors. Though it is a closely guarded secret, insiders say, Big B is paid around Rs 3.5 crore per episode. Started in 2000, the first three seasons of KBC were aired on Star Plus. It then moved to Sony Entertainment Television. Big B has been associated with the show since its inception except for Season 3 when it was hosted by Shah Rukh Khan.
Often, we tend to hold a poor view of politicians. With Parliament stalled at the drop of a hat, our misgivings about Parliamentarians and the Parliamentary systems of democracy deepen. A closer study, however, will reveal how misconceived our views are. Look at the way the Parliamentary Standing Committee on Finance sought to address ticklish issues in the corporate debt resolution process. Why should the resolution option be inflexible? Why should a resolution plan result in the disposal of the entire business and operations of corporate debt (CD) under a single plan? A combination of bidders taking different business units or assets could well be a superior solution. This could be better than a single bidder acquiring the entire business from a committee of creditors (CoC). The Insolvency and Bankruptcy Code (IBC), it appears, doesn’t facilitate multi-plan solutions for corporate debt resolution. The rules under Corporate Insolvency Resolution Process (CIRP), however, do provide for flexible disposal of assets/business of CD to different bidders. But IBC appears to grant no such flexibility to CoC. While IBC is a Parliamentary statue, CIRP laws are subordinate legislations. Hence, the Parliamentary Committee has recommended changes to IBC so that a resolution is achieved by pursuing either of the means prescribed by CIRP rules. Indeed, Parliamentarians do a quiet job behind.
Incredible India! Five varieties of apples from Himachal Pradesh have been exported for the first time to Bahrain. This from a State which started growing apple about 100 years back. Thanks to Samuel Stokes, better known as the Apple Man of Himachal Pradesh, who came to India in 1914. Samuel Stokes left Philadelphia when he was just 22, got drawn into Mahatma Gandhi’s non-cooperation movement, probably the only American jailed in our Independence movement. He turned Hindu, married an Indian and settled down in HP. This state’s outstanding fruit, the Apple was a gift of the saplings and cuttings that Stokes brought from the US. When he died in 1946, he was cremated in the hills of HP. For reasons best known to historians and Apple orchard owners, Stokes and his contributions were largely ignored. While this American gave Indians the taste of Apple, the other American the legendary, the late Steve Jobs, gave the world his version of apple. Immortalised as the poster man for an Apple lover, Jobs found his life’s calling in India. Jobs, it seems, was seeking that eternal bliss and answers to his business failures. He came to Nainitals’ Neem Karoli Baba Ashram in the seventies. And that became the Bodhisattva tree moment for Jobs. And the rest is history.
State-owned telecom behemoth Bharat Sanchar Nigam Ltd’s (BSNL) plans to launch 4G, at a time when private operators are on the verge of rolling out 5G services, seems to be jinxed. While the latest in the series is a Tata Consultancy Services-led consortium seeking changes in product specifications, in July BSNL’s board did not approve upgradation of its base transceiver stations (BTS) in two zones. The proposal to upgrade BTSs, supplied by Nokia in southern and western zones, did not get approval at the board meeting held on July 23, 2021, which was chaired by BSNL chairman and managing director PK Purwar. This was despite the proposal, which was estimated to cost a modest Rs 550 crore, was approved by BSNL’s management committee on July 1. However, its board, including two members from the Department of Telecommunications (DoT) and directors of BSNL, did not agree to the proposal and the agenda has been deferred to the next board meeting, which should take place before September 30, sources said. The mini-ratna firm was expecting the launch of 4G services, along with the Union Cabinet-approved revival plans, to help in its turnaround. For BSNL unions, this is a feeling of déjà vu, as there was a string of rejections to the PSU’s 4G equipment procurement and upgradation plans, the prior one being in December 2019.
The year 2021 seems to be an important one for Skoda Auto, the European auto giant, as they have unveiled the 2.0 strategy. For starters they have announced a unique design contest for all its new cars to be globally unveiled in India later this year. The winners of this contest will get to meet their head of design at Prague, Czech Republic. Realizing India loves cricket, the company is investing in the ICC Men’s T20 World Cup as broadcast partner. It may be recalled that Škoda made its first major inroad into football sponsorship by agreeing a deal with Spanish LaLiga club Espanyol. Its strategy seems to be to sponsor the most popular sports. For ICC, besides Skoda, they have already signed another auto client on board besides Nissan who are the sponsors for global cricket events till 2023. ICC has also opened Expression of Interest for media rights opportunities for various non-exclusive media rights in relation to public screening. To popularise the sports globally, they have also introduced bids to get bidders to package attractive content on any inflight or on board entertainment on aircraft, ship or train. These commercial initiatives by ICC are to boost the popularity of cricket globally by 2032 and open the door to the sport’s entry in the Brisbane Olympics.
SEBI, the capital markets regulator, has been aggressively issuing orders against entities found violating rules and making illegal gains using unpublished price sensitive information or ‘UPSI’. These orders involve consent terms for the violation and settling without admitting guilt, and also a component of ‘Disgorgement’. The term ‘disgorgement’ is defined as “the act of giving up something (such as profits illegally obtained) on demand or by legal compulsion. This brings us to a bigger and more important point of moral turpitude. Does an individual who sits on a board of a listed company as an independent director and has disgorged an amount to a regulator along with the promoter of the same company for illegally benefiting from USPI committed moral turpitude? The fact that he has used the same information as the promoter has, is testimony to the fact that he is no longer independent. Similarly, when a senior officer of an I-banker acts in a similar manner and disgorges money, the fact that he has settled consent terms amounts to having committed a breach of confidentiality. In such cases without exception, strictest of action needs to be taken and the concerned person should be asked to leave. It is time for Corporate India and minority shareholders to take the matter of ‘UPSI’ seriously and demand that action be taken against erring individuals.
In this season of tech-driven IPOs, an older tech firm from the Tata stable is also readying for an IPO. Tata Sky, the DTH provider (which also has broadband service ambitions), has been around for over a decade and has been beaming bouquets of TV channels into homes across the country. Set up as a joint venture with Sky TV of the UK, then controlled by Rupert Murdoch, it has steadily expanded its coverage. And while competitor Dish TV may cater to more homes, Tata Sky, focusing away from the bottom end of the market, is way ahead in terms of revenues. It is now a mature business and ready for an IPO. After Murdoch sold Fox TV (but not Fox News) to Disney, the Sky holding had passed on to Disney. But India was the only country where Disney had a stake in broadcast distribution, and it did not fit in with Disney’s business. So, the IPO is an exit route for Disney. It will raise some money for the company and also give Tata Sons a liquid listed asset. The investment bankers are just being appointed to prepare the draft prospectus. This will be one more share issue likely to be lapped up by the public.
Group M, WPP’s media investment group, in its Global Marketing Monitor has reported: “Semi-conductor shortages will have an uncertain impact this year, especially on motor vehicle manufacturers. Related disruptions could have an impact on spending on advertising by those companies, but could also impact the electronics companies consumers rely on to access content. Both industries have options to mitigate supply chain challenges, so negative consequences are not necessarily going to be meaningful.” The report adds that top advertising auto companies Honda, BMW, General Motors shall be short of their productivity targets, though the production is down but demand is up. Ad spending could be impacted, says the report. The global shortage could have some impact on India where things are looking up for the country as a whole and the auto sector among others. Analysts say if there is a supply chain issue, then here too in India, some of the auto companies may put their advertising campaign on hold or curtail it till they are assured of regular supply. But they say the impact could be short term. Seeing demand-supply mismatch the Tata Group has announced plans to make semiconductors. As per Pitch Madison Advertising Report 2021 for India, auto category’s advertising contribution in 2020 was Rs 3,243 crore
Among its many attempts to stay afloat, beleaguered telecom operator Vodafone Idea Ltd (VIL) has offered to merge the firm with state-owned Bharat Sanchar Nigam Ltd (BSNL), another debt-laden company. Further, in an attempt to keep it afloat, VIL’s UK parent Vodafone Group Plc is also ready to offer its stake in the Indian company to BSNL for free. If a merger or stake exchange happens, VIL – which provides telecom services under the brand ‘Vi’ – would become a government entity, a move that would help it buy more time for raising funds. The company also hopes its spectrum dues would be kept in abeyance, giving it a much-needed lifeline. While the merger would bring in a number of synergies, including BSNL being able to provide 4G services, it also comes with a number of pitfalls. BSNL in itself is a loss-making firm, and a revival package approved by the Union Cabinet in 2019 is yet to bear fruit. Worse, the public sector unit is finding it difficult to pay salaries on time. Importantly, a formal communication from VIL or its promoters is yet to reach BSNL or its parent the Department of Telecommunications. “We might take a call depending on the contours of the offer, but we are yet to get a formal call,” a source in the telecom ministry said.
The Kolkata based Keventer Agro is looking to raise anything between Rs 800 crore and Rs 900 crore through an IPO. The proposed issue will offer an exit route to the existing Singapore-based private equity investor Mandala Capital, which holds close to a 22% stake in the company. Sources said the fresh issue of shares would be in the range of Rs 325-375 crore. While about Rs 125 crore would be kept for capital expenditure, Rs 250 crore would be used to retire debt and build a capital base to expand the business in other parts of India. The IPO, valuing Keventer in the range of Rs 2,400-2,800 crore, is expected to hit the market during Diwali. The company plans to file a draft prospectus with SEBI in the next few days. Post-issue, promoters’ holding will dip by 10 percentage points to 70%. Owned by Jalan family, Keventer Agro is the largest milk producer in the private sector in the East and the Northeast and is also the franchisee for Parle’s Fruity, Appy and FIZZ. Now diversifying to frozen foods segment, it is also a large seller of bananas, especially in Bengal. It clocked a revenue of around Rs 1,000 crore in the last fiscal. The issue is the second this year from Bengal after iron and steel company Shyam Metalics.
Now, the next big event on advertisers’ watch list is ICC Men’s T20 World Cup to be hosted in the petro-dollar venues UAE and Oman from October 17 to November 14, 2021. Reliable sources say Star Sports, the official broadcaster, which includes its video streaming app Hotstar, has already lined up event sponsors (BYJU’S, Dream11), broadcast partners (Coca Cola, Vimal) and are hoping to get on board two more sponsors. Already 40% of the inventory has been sold – with the cost for a 10-second spot put at Rs 10,000-Rs 12,000. The World Cup which will be played after Dussehra but before Diwali may prove to be bang for the buck for both advertisers and broadcasters. Star Sports which was expected to rake in around Rs 3,000 crore (that includes Hotstar) by way of advertising revenue from IPL 2021, could not hit that number as matches were suspended due to the second wave of pandemic. However, insiders are optimistic that Star Sports will earn close to Rs 1,200 crore from 45 matches to be played between 16 teams in the T20 World Cup. It is learnt several advertisers like BharatPe, Upstox, OPPO, MRF Tyres, Booking.com have signed on as ground sponsors. As always the most keenly watched match will be one between India and Pakistan and for this match advertisers don’t mind paying a premium.
Indian skipper Virat Kohli wears too many hats. He has opened a resto-bar in the city of joy, Kolkata. Nestled in the heart of the city, One8 Commune Kolkata is designed by Sumessh Menon, whose firm specializes in upscale, bespoke residential, commercial and hospitality interiors. The interiors are infused with the spirit of the city’s nostalgic heritage. While the vibrant blue wall, designed as a book wall, alludes to the city’s rich treasure trove of literature, arched windows, vaults and touches of cultural vibrance are inspired by the city’s architectural heritage and endeavour to bring out a warm, nostalgic ambience. Overseeing the menu is Pawan Bisht, corporate chef and R&D executive of One8 Commune, who intends to offer Kohli’s favourite dishes including mushroom googly with truffle oil and mushroom, millet-based red and white quinoa salad and sugar-free mocktail made with aloe vera juice and pineapple along with some more flavours. Sprawled over 4,500 square feet of space, the resto-bar is Kohli’s second outlet in the country after Delhi’s Aerocity. Besides becoming co-owners in the football and wrestling franchise, he has also invested in fashion brand WROGN, gym & fitness chain Chisel. Before Kohli, other cricketers like Sourav Ganguly, Kapil Dev, Sachin Tendulkar, Virender Sehwag and Ravindra Jadeja too invested in the hospitality business. While for some the ventures ended in disaster, others are quite successful.
It has been an inconclusive debate. Which is better of the two: Family-run businesses or professionally managed companies? In today’s world, the business dynamics have changed quite drastically. So much so, private equity firms have come to play a dominant role in driving the destiny of any business. When a business entity aspires for growth, a quick one at that, a trade-off becomes inevitable. The founders, nay promoters, don’t hesitate to sell a perception and project to the world at large that their enterprises are professionally-managed. This statement attracts PE players in hordes and in the process drives up valuations. Hence, it has come as no surprise when Zomato founders declared that they aren’t the promoters as their holding dropped below 25%. Ditto: Paytm. The oldest example of a company without a promoter is that of L&T, an Indian multinational conglomerate which is professionally managed. In the case of ITC, it is 29.4% owned by UK-based BAT, again no owners but a professionally managed company. Likewise is Hindustan Unilever, a subsidiary of British company Unilever. Being a promoter does not entail benefits nor liabilities. But, in case of any eventualities – like we saw with Vijay Mallya or Mehul Choksi – the buck stops there. Giving up the promoter‘s tag to attract global PE players may be a new trend but will it last?
On the brink of a collapse, Bharat Sanchar Nigam Ltd (BSNL) was expecting the Union Cabinet approved 2019 revival package – which included a Voluntary Retirement Scheme (VRS), monetisation of assets and 4G rollout – to nurse it back to health. While the State-owned telecom behemoth implemented the VRS scheme in 2020, letting go of nearly 79,000 employees, the other plans in the package are yet to materialise. Forget being profitable, BSNL is now finding it difficult even to pay salaries on time. According to sources, the company is now seeking arrears of about Rs 39,000 crore from the Department of Telecommunications (DoT) to tide over the financial mess, rather than waiting for the implementation of the revival plan. This, according to the various unions and associations of the public sector unit, is under various heads such as salaries and pension contribution of officers deputed to BSNL by DoT, financial support to be provided for rural telephony services and cost of surrendered CDMA spectrum among others. Last week, the representatives of BSNL’s various unions and associations met Communications Minister Devusinh Chauhan and apprised him about the dues, and the delay in crediting of salaries and 4G rollout among others. The minister had assured to look into the issue, a source said, adding, “fingers crossed”.
Apeejay Surrendra Group have sold off their interest in the UK-based Typhoo Tea to London based private equity firm, Zetland Capital. Post sell off, the PE firm led by dealmaker Ahmed Hamdani, has become the majority shareholder of Merseyside, the Liverpool-based company which has been battling heavy losses over the past few years. As per the agreement, the licence to sell teas under the Typhoo brand in India will remain with the Apeejay Group for the time being. The Kolkata-based Pauls, with interests in real estate, hotels, shipping, tea plantations and logistics, had bought the 120-year-old UK-based Typhoo Tea from Premier Foods for £80 million in 2005. The Pauls launched Typhoo packet teas and herbal infusions in India in 2008, building on its famed British legacy. Typhoo Tea’s troubles began after its strategy to ramp up sales at its private label business floundered badly. The prolonged uncertainty over Brexit also hurt badly. The Pauls decided to exit Typhoo Tea because the British venture was bleeding and needed huge cash infusions. Founded by John Sumner Junior in 1903, Typhoo Tea was the first to sell ready-packaged and also the first to launch a green tea blend in the UK. Typhoo’s brand portfolio includes: Glengettie, Melrose’s, instant tea Lift, organic Heath & Heather, and speciality tea Ridgways of Londo
West Bengal Chief Minister Mamata Banerjee’s return serve, to use a tennis phrase, seems faster than what BJP had anticipated. Even though Didi has won the game comfortably she is not happy. A reliable source says that hurt by party deserters her ire is directed at the mastermind – BJP. And she is doing everything within her might to put BJP on the back foot. For starters, Governor Jagdeep Dhankar who has been highlighting horrific post-poll violence has been called ‘corrupt’, Nandigram election results challenged in the High Court, HC judge handling that case has been asked to recuse from the case by her and now she pledges Khela Hobe with focus on 2024 Lok Sabha polls to oust BJP. In doing so, Didi, according to a businessman, is missing wood for the trees. Election is past tense; now the most important thing before Didi is the West Bengal economy. And she has not made any statements about giving fillip to state industrialisation. The business fraternity, he says, will not embark on any green field projects but perhaps do incremental brown field projects. To avoid being caught in the crossfire in the slanging match between the Centre and State, some businessmen are thinking of relocating out of India. If Didi focusses on West Bengal economy all other problems will solve itself.
For Kerala-based Kitex Garments chairman & managing director Sabu M Jacob, moving to Telangana was an easy decision. “If I invest Rs 1,000 crore in Telangana, over the next 10 years, the government there will pay me back almost a similar amount via capital subsidies, payback incentives etc. But if I invest Rs 1,000 crore in Kerala, I need to shell out another 100 crore to deal with ‘other expenses’ here,” Sabu said. Kitex is investing in an apparel park at the Kakatiya Mega Textile Park in Telangana’s Warangal district. He has also made it clear that the existing facility that gives employment to over 15,000 people will continue to operate in Kerala. Just that the expansion plans will be moved out of state for operational reasons. Sabu says this decision to relocate expansion plans to another state is purely a financial decision and nothing to do with politics. This comes after media speculation that the ruling Communist Party of Kerala thought it was high time to clip his wings after Sabu’s political entry via his CSR arm 20:20 started making an influence in the electorate. The 29-year-old company, part of the Anna-Kitex group, is the largest private sector employer in Kerala. Being an employment generator saw many States willing to roll out the red carpet to the company.
Problems never come singly, it is often said. It has come in two in this instance. Two think-tanks are in Tamil Nadu. And, that is one TWO many for the political mandarins to care for. Madras Institute of Development Studies (MIDS) and Madras School of Economics (MSE) are two eminent policy institutions in the Dravadian land. They have consistently got sustenance in the form of active support from the Tamil Nadu Government. But there is a catch. And, the catch – nay the truth – lies somewhere in between. The MIDS was founded with the blessings of late M Karunanidhi. While he ruled the state, MIDS was in the limelight. But MSE was patronised by AIADMK founder and former chief minister J Jayalalithaa. Even after her demise, MSE found in her successor a well-wisher and reliable supporter. The Edapaddi Palanisamy regime was favourably disposed towards MSE, and encouraged free flow of advice from its expert team. With the DMK back in Fort St George with Karunanidhi’s son MK Stalin as the chief minister, how will these two institutions be viewed? That the present finance minister of Tamil Nadu PTR Palanivel Thiagarajan is unhappy with the erstwhile AIADMK Government’s softness toward MSE is quite on record. Well, will the balance now shift towards MIDS? Think hard!
‘Can We Do Another 1991’ – This is the latest from Business India (July 12-25, 2021). The cover story compares former prime minister Dr Manmohan Singh with the current prime minister Narendra Modi. The magazine says, “Given the abnormal times, comparisons about economic performance of successive prime ministers are odious. Like Singh, Modi is having his share of troubles not entirely of his own making. If Singh had to battle the domino effect of the global financial meltdown, Modi has to cope with the pandemic’s dark shadow since last year.” Still, let’s see in brief how the comparison works. On the face of it, there is little doubt that Modi as a PM has been running a tighter ship than what Singh did in terms of governance. This is mostly because of his centralised form of governance and lack of any extra-constitutional power interfering in his work. Yet, Singh stands tall over Modi as a reformer. The BJP-led dispensation has been no match for Singh as finance minister in the Narasimha Rao government in anchoring far-reaching structural reforms that invigorated the economy. Modi’s reforms like demonetisation and a hastily stitched GST have caused major disruptions in the informal sector. He has been forced to keep the farm reform laws in abeyance because of farmers’ protests and the Insolvency & Bankruptcy Code because of the pandemic.
The pandemic is playing havoc in the real estate segment, at least where rental deals are concerned. According to Squarefeatindia.com, a leading real estate website, rental deals in Mumbai has seen a sharp fall of 39% in the first quarter of this year. In April-June 2019, the number of registered rental deals was 69,536 against 42,468 in April-June 2021. Yashika Rohiira of Karma Realtors, talking to the website, attributes this sharp fall to Covid-19. With pandemic, most people have returned to their homes. Be it college students or even those who work in the city hail from different parts of the country. With the threat of third wave looming large no one sees either colleges or workplaces opening up too soon. Hence, there is not much desire for people to come back and rent the places. Even in upscale places like Bandra or South Mumbai, where foreign nationals generally rent properties, there has been a lull as many have gone back to their countries and work-from-home culture has set in. Rohiira feels with the danger of third wave looming large the rental market of Mumbai will continue to suffer for some more time.
Covid-19 has indeed re-jigged the world of business. And, it has realigned relationships as well in several instances. For some, this has turned out to be a new opportunity. One of the big things that happened last year at India’s largest auto component manufacturer Wheels India was the exit of Titan Europe by selling its stake to TVS group. With its exit, Wheels India, part of the TVS Group, can now sell all its products anywhere it wants. When Titan was around, the Chennai-based company had restrictions on where it could do business. A quarter of its turnover comes from exports. Having got out of the Titan bandwagon, Wheels India, led by managing director Srivats Ram, is now feeling free and is very much keen to explore its new found-freedom internationally. It is now eyeing a bigger pie in the global space. And, it has quietly moved toward realising this. A Rs 140-crore cast aluminium wheel plant is, in fact, the result of the de-risking strategy of a U.S. customer who has already committed off-take. A windmill project is currently underway. This too is the consequence of a strategic partnership with a windmill supplier who has decided to build a global base for his product in Chennai. A good portion of its Rs 100-crore capital expenditure will go into this new wind mill plant.
The king of romance is back in what he does better. The Mumbai-based Hygienic Research Institute has signed up the 55-year old superstar Shah Rukh Khan as their brand ambassador for Streax Hair Colour. The first brand which Shah Rukh Khan endorsed was Liberty Shoes way back in 1988. During the last 33 years, SRK has endorsed close to 44 brands and hair colour is the latest addition to his remarkable portfolio. With fewer movies in action, SRK, it is learnt, is looking at every opportunity to climb up the Brand endorsement rank. According to Duff & Phelps Celebrity Brand Valuation Report 2020, Shah Rukh Khan has moved up one notch to No. 4 commanding a brand value of $51.1 million. At No. 1 is Virat Kohli with brand value of $237.7 million followed by Akshay Kumar ($118.9 million) and Ranveer Singh ($102.9 million). Shah Rukh is trying to move up the pecking order. He has signed a number of brand endorsements contracts and shooting of most of the ad films was done at his residence, Mannat during the second lockdown. The superstar, whose personal net worth, according to Forbes Rich List 2021, is around $690 million also runs a successful production house Red Chillies and is the co-owner of the IPL team Kolkata Knight Riders.
Ever since Uday Shankar, former chairman & CEO of Star India and President of Walt Disney Asia Pacific, joined Business Standard as non-executive director in February this year, rumour mills have been on an overdrive. Avid media watchers say, BS has been looking for a good investor to buy a majority stake. Shankar, a former TV journalist who redefined media business in the country, is not joining the board for its ornate position. They say, going by his past track record, he may play an active role in the running of the paper and chalking out its growth plans. Coincidentally, Shankar has entered into a new venture with his former employer James Murdoch. The venture will be focusing on technology and media opportunities, including digital media, in the emerging markets. “The fact that BS has been looking for an investor is no secret and hence it will not be a surprise if Uday Shankar buys a majority stake in the paper,’’ said an insider. The paper has been quietly witnessing a slew of changes. Veteran business journalist TN Ninan, who transformed the paper, after getting in Uday Kotak and company to buy stake from Ananda Bazaar Patrika, has stepped down as chairman and director after over three decades of association. The business daily’s CEO Shivendra Gupta has been appointed as MD & CEO.
His rise was meteoric, so was his downfall. Rapid. Billionaire Pramod Mittal (65), the younger stepbrother of steel tycoon LN Mittal, who reportedly spent $82 million for his daughter’s marriage, is bankrupt. He has lost everything from coast to coast — business empires in Bosnia, Bulgaria, Africa, Philippines. Ditto: India. His steel business Ispat Steel was sold to Sajjan Jindal controlled JSW in 2010. The only saving grace was the Orissa-based Balasore Alloys, earlier Ispat Alloys. This listed company, with captive mines, is one of the largest manufacturers and suppliers of high carbon ferrochrome. Now, this cash rich company too has turned sick. The plants have been shuttered close to a year with hundreds of workers, employees, vendors, banks and utilities not paid. Reportedly, some of the top brass including finance director, company secretary, and independent directors have resigned over non-payment of dues and fees. People close to the company say this plant, a legacy of Pramod’s father Mohan Lal Mittal, will require a fund infusion of Rs 1,000 crore to start operations. Analysts are surprised that at a time when commodity cycle is on upswing how come this company has turned sick? For now Balasore Alloys future hangs in a balance –waiting for knights in steely armour.
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Editor’s Note: Short Post Noticed By People Who Matter
Four years have zipped by and we are crossing another milestone on 31st January 2025 – it’s our 4th Anniversary. It feels good.
Looking back at the 1460 days, I must say Short Post has made its mark with people who matter via 4000 stories published in the areas of politics, business, entertainment and sports. All made possible by the unflinching commitment and dedication of our senior editors, most of whom have been part of this journey from Day One.
Small pack, big impact is in essence the story of Short Post which was launched at the height of the Covid-19 pandemic in 2021. It shows our conviction. In all humility, I can say, we have created a new niche in the news segment space like Hindustan Unilever which created a new segment, when it launched CloseUp Gel.
Yes, we have created a brand (in a limited sense), created demand (readers) and created supply (senior journalists). But we are facing teething problems like all start-ups. What makes us happy and confident is the recognition of our efforts. For instance, we have an arrangement with the OPEN Magazine, part of the $4.5 billion Kolkata-based Sanjiv Goenka-RPG Group. This arrangement sees around 10 Short Post stories posted on OPEN Magazine website every week. This arrangement is testimony that our content has been well received! Also, I may add that the Maharashtra government has recognised Short Post and has allowed our senior editor to cover the Assembly sessions. Ditto: Odisha.
Our goal is to ensure that Short Post becomes a habit. I would like people to keep checking their smartphones to know the latest Authentic Gossip. As regards AI and the fear of it disrupting all businesses including media. On that, personally, I have no such fear as I am confident AI cannot smell news particularly Authentic Gossip. That’s the place we are well entrenched.