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Change is the only constant in the world. It also signals a move forward. In this instance, however, this change has ushered in a complete break from the past. No doubt, the ownership of Kothari Industrial Corporation (KICL), a company founded very many summers ago by the late DC Kothari, has moved on to Rafiq Ahmed a while ago. But there was a sense of continuity with Pradip D Kothari, son of DC, remaining as the Chairman of KICL. A few days ago, however, he stepped down to pave the way for Rafiq Ahmed to become the Executive Chairman of the company. With this, the break is complete. From now onwards, KICL will run on its own sans the DC Kothari family members. Indeed, KICL has padded up for a new innings. Having given a new lease of life to KICL, Rafiq Ahmed is focussing on the way forward. He continues to carry on the legacy of the late DC Kothari. At the same time, he is charting out his own plan to bring the glory of former times back to the Kothari, a celebrated brand once upon a time. The DC Kothari Group, in fact, had grown with the blessings of illustrious names such as R Venkatraman (former President of India), K Kamaraj (chief minister of Tamil Nadu) and the like. Not surprisingly, Rafiq Ahmed has chosen to continue the legacy of the vision envisioned by DC Kothari. Well, the newly-anointed Executive Chairman is on a mission mode. He has put on a blinker to push brand Kothari to its original glory.
The longstanding cultural tradition between India and Bangladesh surrounding International Mother Language Day faced an unexpected disruption this year due to political tensions. Just a year ago, the Vice-Chancellors of Dhaka University and St Xavier’s University, Kolkata were seen together at the historic Shaheed Minar in Dhaka, joined by students from both institutions. However, this year, the event had to be cancelled amid a charged political atmosphere in Bangladesh. The tradition dates back to 2011, during the 150th birth anniversary celebrations of Rabindranath Tagore. That same year, St. Xavier’s University introduced its Bengali Honors course. Since then, a torch, symbolizing linguistic unity, would be lit at Dhaka University’s Shaheed Minar days before February 21st and then carried across various universities in West Bengal, including St. Xavier’s campuses in Raghabpur, Siliguri, and New Town. The final ceremony used to take place at St Xavier’s University in Park Street on February 21st. However, this year, the torch was absent from Kolkata’s observance of the day. Ferdousul Hasan, honorary secretary of St Xavier’s alumni association confirmed the decision not to bring the torch from Dhaka this year due to political tensions. Hasan said the torch lit in Dhaka was taken to various institutions like Loyola College in Chennai, St. Joseph’s in Bengaluru among others. This interruption has underscored the impact of changing political landscapes on the cultural unity between the two Bengals. Even the Deputy High Commission of Bangladesh in Kolkata opted for a low-key, closed-door observance of February 21st this year, reportedly to avoid controversy. Meanwhile, West Bengal government-led celebrations took place at Deshapriya Park.
The labour impasse at the Samsung’s Sriperumbudur facility in Tamil Nadu is attracting increasing attention as both sides aren’t ready to yield from their stated positions. The trigger for the latest industrial dispute was the suspension of three workers of the union which was registered under a court order but has not been recognised by the Samsung management. As the fracas continues, the union leader has alleged that the management has suspended more workers. The suspension of the three union workers, the management claims, was forced as a section of the workers led by these three assembled unannounced and gate crashed to have an audience with officials of the company. The union leader — an outsider belonging to CPI(M)-affiliated CITU, wanted the suspension removed and demanded the management to forthwith stop using contracts labour. This sounds funny. If Samsung can’t use contract labour, how can the union have an outsider as its leader! An oxymoron position by the union leader, it appears! As the stalemate prolongs at Samsung facility, questions have risen over its fallout on the effort of the DMK government in attracting global investment. In the emerging era of artificial intelligence one is unable to fathom the larger implications of such strident position articulated by an outsider-leader.
The moment Shiv Sena (UBT) dismissed its spokesman Kishore Tiwari from the responsibility, he launched a tirade against the manner in which the party is being run. While going soft on leader Uddhav Thackeray, he has held some top leaders responsible for the Sena’s debacle. The Sena is receiving one jolt after another almost daily due to desertions by its loyal workers and Tiwari’s unbridled outburst is bound to make its challenge graver for the coming local body elections. While Uddhav has tried to inject vigour into the rank and file by declaring his resolve to administer one mega blow to the ruling saffron alliance, Tiwari’s disclosures will force the party to defend its decisions, especially of distributing tickets for the 2024 assembly election. Tiwari has alleged that many of the tickets were ‘sold’ and certain party leaders had amassed a fortune. His main target is party MP Sanjay Raut, whose continuous controversial statements Tiwari has found very objectionable and damaging. Tiwari has criticized other leaders like Subhash Desai, Vinayak Raut and Milind Narvekar, who are closest to Uddhav. He told a news channel that he has revealed just one percent and will expose more and more misdeeds of the party and its leaders. Tiwari has been the Sena protagonist on various Marathi and national news channels. He has vowed to continue to work for the Sena ‘until I am expelled from the party.’
Controversial Maharashtra minister Dhananjay Munde has been down with Bell’s Palsy, which has incapacitated him. But the clamour for his resignation is not likely to subside. Munde has been the bone of contention within the ruling NDA regime due to the several serious allegations levelled against him. Some of his closest aides are behind bars and even his own future is bleak. A staunch supporter of deputy chief minister Ajit Pawar, the nephew of late Gopinath Munde, he has emerged as a formidable OBC leader in the state. Therefore, demands for his removal from the cabinet have been ignored by Pawar. However, the series of exposures with Munde’s alleged connection have landed the Fadnavis government into a tight situation. Munde’s ironclad hold over his home district, Beed, is said to have culminated into various scams and acts of violence. Chief minister Devendra Fadnavis has declared that Pawar will take a decision about Munde, whose illness has complicated the situation. Bell’s palsy is a condition that causes sudden weakness in the muscles on one side of the face. The weakness makes half of the face appear to droop. It can occur at any age though the exact cause for its occurrence is not known. Munde’s absence from the cabinet meetings and from public events had started rumours that he had resigned or had been asked to quit. He himself has so far stoutly denied any such decision. His affliction has temporarily stopped his critics but many of them have declared to continue the campaign against Munde by wishing him a speedy recovery.
The intitial turn out for India’s opening ICC Champions Trophy match at the Dubai International Stadium (DIS) was a far cry from the spectators who showed up for India’s home series matches against England recently. It was full house in Nagpur and Cuttack, and around 60000 at the Narendra Modi Stadium in Ahmedabad for the third ODI. The men in blue are a big draw anywhere in the world but on Thursday — which is not a holiday here — there were not many takers, most of them having saved Dirhams for the India-Pakistan group match on Sunday, which is a weekend holiday. The DIS can hold between 25000 and 30000 people and by the time Mohammed Shami and Harshit Rana struck blows in the first 10 balls of the match — after Bangladesh chose to bat winning the toss — one could see empty seats at the Stadium. The venue which has a canopy like roof and gives a ring of fire like visual as dusk settles in, has become a popular venue in the UAE — the other two being the Sharjah Cricket Stadium and the Shaikh Zayed Cricket Stadium in Abu Dhabi. Tickets are priced as low as 250 AED and it goes up to a high of 12500 AED for the Grand Lounge at the DIS. The ticketing arrangements have been done by the host Pakistan Cricket Board and Emirates Cricket Board and much of the gate receipts should be going to Pakistan’s kitty. Wickets were falling in a heap in the first hour of the match as India gained the upperhand and the only disappointing aspect was skipper Rohit Sharma spilling a catch at slip to deny left arm spinner Axar Patel, a hat-trick.
In a week’s time, that’s next Sunday on February 23, the world of cricket would swing to the passions reflected across India and Pakistan in the ICC Champions Trophy. The clash between the arch rivals in cricket will be a sell out with every seat at the Dubai International Stadium, where the expatriates will shell out thousands of Dirhams and create an electrifying atmosphere. Seventeen months ago, a near full house at the Narendra Modi Stadium rooted for the Rohit Sharma-led Indian team against Pakistan in the ICC World Cup. India which won that match was the host of the World Cup and Pakistan travelled to Ahmedabad for the marquee event. The Pakistan Cricket board (PCB) being the host of the ICC Champions Trophy, believed India would travel across the border to give the local fans — either in Lahore or Karachi — a real experience of a high-octane tension filled match, but the BCCI, not allowed by the government of India, refused to send its team to Pakistan — citing security concerns — and India’s group matches were scheduled in Dubai. An India-Pakistan contest in any sport is an extraordinary event by itself, but one between the cricketers of the two countries is truly uplifting to the millions of fans of the country that wins the contest. Eight years ago Pakistan downed India by 180 runs in the Champions Trophy final at ‘The Oval’ in London. Pakistan holds a 3-2 edge in the Champions Trophy and 73-57 edge overall in ODIs, but it’s 2-0 for India in Dubai with Rohit Sharma totalling 317 runs in five matches with a high of an unbeaten 111 against Pakistan in the 2018 Asia Cup.
Maharashtra’s Gadchiroli district seems to be on the radar of corporate India. Two big projects, an iron ore, and a steel plant, involving huge investment is expected to transform this naxal-infested belt forever. Sajjan Jindal promoted JSW Group is setting up a 25 million tonne steel plant – world’s largest — by investing Rs 1 trillion over next seven to eight years. Helping the steel plant with regular supply of iron ore is B Prabhakaran-promoted Thriveni Sainik Mining. This company is a prominent player in the coal mining sector with a capacity to deliver 15 MTPA of coal. Coming to iron ore, Thriveni has entered into an agreement with Mukesh Gupta-promoted Lloyds Metals and Energy as Lloyds was granted a 50-year iron ore mining lease in 2007 for 348 hectares at Surajgarh Village. This area is known to have a major iron ore reserve. It may be recalled that Gupta was a high-profile businessman in the nineties running a clutch of companies from steel to real estate to pharma. Thriveni which got into play in 2021 after being appointed MDO or Mine Developer and Operator has already produced over 3 MTPA and plans to produce 25 MTPA iron ore. Sometimes back, Thriveni Group was in the news not because its promoter Prabhakaran was arrested over his role in a mining scam but, because the Union minister of Railways Ashwini Vaishnaw before entering politics was a director in Prabhakaran-promoted iron ore company Thriveni Pellets Pvt Ltd set up in 2019.
Nine years after the Left Democratic Front (LDF) headed by Pinarayi Vijayan blocked the then ruling UDF’s plan to allow private universities into Kerala, the LDF has had a change of heart. “The government’s latest decision is in sync with changing times,” says Higher Education Minister, R Bindu. Any agency which has experience and credibility can apply to set up a University provided it deposits Rs 25 crore as corpus money and also has the requisite land as per regulatory agency. In case the proposed Private University is a multi-campus varsity, then at least 10 acres of land is required. The government’s move is to ensure that Malayali students remain in Kerala. As per a joint study by Gulati Institute of Finance and Taxation (GIFT) and Centre for Development Studies (CDS), nearly 50.8% of Malayali students migrate to neighbouring Karnataka alone for higher studies. Though the government has indicated that the new policy has attracted many institutions/universities, it is too early to predict how things will play out due to certain stiff parameters included in the proposal. They include 40% seat reservation for permanent residents of Kerala and that SC/ST students have to be provided scholarships and fee concessions. The LDF government has also indicated that its nominees — Higher Education Secretary and another Department Secretary should be nominated in the Private University’s governing council. And if this is not enough intervention, the state government will have a nominee as member of the University’s executive council and three nominees in the academic council. It will also comply with directions of regulatory agencies regarding appointment of Vice Chancellors and faculty members. Initial indications are that the Azim Premji University and another Gulf-based institution with the blessings of the promoter of Lulu hyper-market chain, M A Yusuff Ali, have indicated their interest.
The Union Home Ministry’s decision to grant actor-politician Vijay, the chief of the Tamilaga Vettri Kazhagam (TVK), ‘Y’ category security in Tamil Nadu has stirred the political pot. Sources said while the security was accorded after an internal security audit by the Intelligence Bureau, it has prompted a sharp reaction from the AIADMK, which suspected that the BJP would use the security cover to get the newbie politician to its side at a time when it is planning a grand alliance with TVK and the Congress for next year’s assembly elections. It may seem the Centre’s security decision is being over analysed. But sources say the Congress is already under pressure from AIADMK to change its TN president ahead of the assembly polls as he is being viewed as too close to the DMK, post Erode assembly by-elections. Meanwhile, it is felt Vijay may accept the security cover as it will be helpful in managing the crowd during his public engagement as a politician. AIADMK functionaries however are unconvinced that the Centre’s decision was merely a security decision. Strongly backing the Centre’s decision to give Vijay ‘Y’ security cover, TN BJP chief K Annamalai pointed out that the Central government had given CRPF security to Opposition leader Edappadi K Palaniswami, regardless of whether the AIADMK was in alliance with the BJP or not. He pointed out that similarly the central government had given ‘Y’ security to Vijay. “The reason that Vijay is not able to meet the public is because of the huge crowds.” He also wanted to know why the DMK government in the state had not come forward to give Vijay this sort of security.
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.
The year 2021 continues with Bollywood heavy weights staying bullish on real estate market. The latest one, according to a leading real estate website squarefeatindia.com, is popular Bollywood star Ajay Devgan has purchased a bungalow measuring 474.4 sqm located at Kapol CHS, JVPD, in Mumbai’s Juhu for Rs 47.5 crore. Devgan paid stamp duty of Rs 2.37 crore and availed a bank loan of Rs 18.75 crore. Earlier, Big B paid Rs 31 crore for a duplex in Andheri. Last year we saw big investments in the real estate space by nine top Bollywood producers, directors, and actors. Bhushan Kumar of T Series fame paid a whopping Rs 167.5 crore for 6,700 sqft villa at Vasanta Theosophical CHS in Juhu. While Hrithik Roshan bought three floors measuring 38,000 sqft for Rs 97.50 crore on Juhu-Versova link road. Late Sridevi’s daughter Janhvi Kapoor paid Rs 39 crore for a flat in Juhu while Alia Bhatt paid Rs 32 crore for a flat in Bandra’s Pali Hill. Adman turned director R Balki, bought two flats worth Rs 24 crore in Bandra.
The MK Stalin-led DMK government in Tamil Nadu has just finished a month in office at Fort St George. But it has already come under intense flak from Opposition quarters. The reasons are not far to seek. Escalating cement prices has put the DMK government in a tight spot. The builders’ lobby has turned hyperactive now and accused the cement makers of competitive collusion. Builders have claimed that the retail cement prices have increased by 13% to Rs 520 a bag of 50 kg from Rs 460 in May. Of course, the builders’ lobby have also come down heavily on steel makers for rising prices. Now, the rising cement prices comes as an unsolicited stick to needle the nascent Stalin regime. Put on the defensive, the Stalin government has sort of sought to correct the `recalcitrant cement industry’ through discussions. The builder lobby has always projected itself as the victim in this cement price game. Never once did the builder lobby come out with any explanation for zooming flat cost! Often, politics (read politicians) ignores the hard economics of any business. How to cement this irreconciliation? That is hard to visualise in Dravidian politics.
Just when the real estate sector was picking across the country, the second wave has hit the sector really hard. In Mumbai, the scene is looking bleak. According to Squarefeatindia.com, a leading real estate website, “property sales in Mumbai in May 2021 saw a 50% dip to 5,360 units from 10,135 units in April.” The reason for this fall is the withdrawal of incentives by the Maharashtra government. It may be recalled that during the first lockdown – in August 2020 – the Maharashtra government had slashed stamp duty to 2% from 5%. This had a salutary effect on property sales. Besides, new sales, It is learnt, many investors who bought flats and had not registered took advantage of this low rate and got their properties registered. Thus, between September 2020 and March 2021, property registrations were brisk. In December 2020, property sale-registration peaked at 19,581 units — 204% jump over December 2019. Citing this example, the industry’s apex body, CREDAI-MCHI, has dashed off three letters to Maharashtra Chief Minister Uddhav Thackeray, urging him to once again reduce stamp duty to 2%. The other setback to builders is that nearly 4.22 lakh homes, across the top seven cities, which were expected to be completed by December 2021, will be delayed due to disruptions in supply chain. Add to this, work from home culture is hitting sale of commercial premises and leases. According to Squarefeatindia.com, “There are 7,400 Office Leases, spanning approximately 90 million sqft which will come up for renewals in 2021 across Bengaluru, Mumbai, Pune, Chennai, Gurugram and Noida.” But real estate agents are not bullish about renewal possibilities.
Sometimes, bad times unexpectedly bring good tidings for some. Almost pushed to the realm of history, Sterlite Copper, part of the Anil Agarwal-controlled Vedanta Group, has suddenly started breathing. Closed for a few years now in the wake of a police firing that killed close to a dozen people outside its plant at Thoothukudi (Tuticorn earlier) in Tamil Nadu, Sterlite Copper virtually got the oxygen when the Tamil Nadu government complied to a court directive to let the plant produce medical oxygen to meet the shortage caused by the deadly Second Wave of pandemic. No doubt the environment (read political) has changed in the Dravidian land with the return of the DMK to Fort St George. But the Corona-induced health dynamics too have brought a change in the anti-Sterlite sentiment in the State. Insiders indicate that the Sterlite Copper team has all of a sudden undergone a major metamorphosis at the top. Vedanta has reportedly named an old-timer Kishore Kumar as the new CEO of Sterlite Copper. The incumbent CEO, Pankaj Kumar, who navigated the Sterlite Copper during its tough phase is believed to have called it quits. Along with him, a top functionary has also reportedly resigned. What surprises long-time watchers of Sterlite is the suddenness with which the changes are made at the top. The top-level re-jig, especially the timing and suddenness of its implementation, has taken everybody completely off-guard.
A soft spoken person, he is now ready to demonstrate his wares afresh. Indeed, he is unfolding a new future. Well, KV Ramani of Future Soft fame is now venturing out to set up a brand new private university. Established under the name and style of Sai University, it is aimed to integrate three fundamental pillars of education – learning, research and societal impact. The 104-acre campus in Chennai has been designed with an eye on maintaining a balance between modern aesthetic and cultural heritage. Ramani, the founder and chancellor of Sai University, played no small role in India achieving a pre-eminent place in the global information technology space. He was a co- founder of the IT industry body National Association of Software and Service Companies (NASSCOM), and served as its chairman during 1997-98. Ramani is currently the CMD of Digital Holdings and the founder and managing trustee of Shirdi Sai Trust. A hugely successful technology entrepreneur, he is a prominent philanthropist now. He joined IBM as a graduate engineer in 1970. Later, he went on to found Future Software in 1985. He also co-founded Hughes Software Systems, a telecommunications software company in India, as a joint venture with the US firm Hughes Software in 1990. The board of Sai University comprises some illustrious names. Well, a new innings has just commenced for Ramani. For a man with a kind heart, providing quality education is not just a passion but a mission too.
It is one of the big ticket real estate deals in recent times, says squarefeatindia.com – a leading real estate website. “Three duplexes, spread over five floors comprising 18 flats and 42 car parking spaces, were sold for Rs 427.81 crore.” The 60-storeyed Raheja Artesia located at Mumbai’s tony address Worli Sea Face is a project of K Raheja Corp. And interestingly, buyers are from the developer’s family. Chandru Raheja, Chairman of K Raheja and his two sons Ravi and Neel, have bought five floors between them. Thus, the duplex on 41st and 42nd floors measuring 2,079 square metres (sqm) costing Rs 143.63 crore will be occupied by second son Neel and his wife Jaya Raheja. The duplex on 42nd and 43rd floor spread over 1,989.71 sqm costing Rs 137.78 crore will be occupied by Chandru and his wife Jyoti Raheja. While the eldest son Ravi and his wife Sumati who paid Rs 146.40 crore will occupy 44th and 45th floors measuring 2,138.23 sqm. Effectively, the three families between them will be occupying 66,811 sqft. Each duplex comes with 14 car parking. This project has been attracting any number of HNI buyers, especially from the HDFC Group. 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.
Rajiv Lochan, having taken over as MD of Sundaram Finance (SFL) at a very challenging time from his iconic predecessor, TT Srinivasraghavan (who presided over the fortunes of this ever dependable, beacon like NBFC for 18 years), is firming up strategies to recover from the pandemic that has left its devastating impact on business two years in a row. So, how will Lochan take on the prevailing challenges, and also prepare for new ones? To start with, Lochan will have to slay the demand for morphing into a bank — a tough decision taken by the Board. He will have to innovate to navigate. A high level source says that for the last two years in a row they have borne the brunt of not getting receivables on time, “We don’t resort to harsh measures for EMI recovery, keeping our accounts alive is more important. About 70% of SFL’s portfolio consists of retail operators, owning and operating two or three trucks; only 30% are big fleet operators. Till the manufacturing sector kick starts, the aim is to stay connected and keep these small enterprises alive.” SFL outlook for quicker recovery is for three sectors: the IT, pharma, and hatchback auto segment. With public transport posing a health hazard, people are aiming to buy their own small cars. The Sundaram Group has a clear view of where to head, and how even during this pandemic. Soft touch for tough times.
While Covid-19 gathers momentum and lockdowns stretch across the country, the vaccines are depleting as the production has not kept up pace with the demand. According to a source, the Hyderabad-based Indian Immunologicals Ltd (IIL) is working on a vaccine. Animal trials are underway and the new vaccine is expected to be ready for human use by next year. IIL makes over 150 products and runs one of the largest plants in the world for veterinary vaccines. Soon it is expected to make drug substance for Bharat Biotech, which makes Covaxin, say sources. IIL will make the substance for 2-3 million doses and scale it up to 6-7 million per month later in the year. Meanwhile, Panacea Biotech has commenced production of the Russian Sputnik vaccine.
Tamil Nadu’s masala market is put at a sizzling Rs 715 crore, the highest among the southern states. And 93% of this lip smacking, aromatic and jazzed up taste is delivered to the homemaker by the two top players of TN, Aachi Masala and Sakthi Masala, brands that have held the ready to go masala market captive with a slew of spice combos that send taste buds into culinary stratosphere. Not surprising that the scent of these spices has tickled the competitors across the country to zero in on TN. Take Bengaluru-based MTR Foods, with a turnover of Rs 1,000 crore. They have already put up a Rs 125 crore product infrastructure to take on the Aachis with Sakthi. According to MTR Foods CEO Sanjay Sharma, even product differentiation has been planned, “Our masalas are pounded, according to tradition, not ground like others.” With an average of Rs 35 crore ad spend, the masala brands are pounding, grinding and literally stomping their aromatic way into kitchens, which now witness more home cooking, gourmet experiments and taste adventures while a family is locked down. Coimbatore’s Annapoorna, a 45 year food brand, plans to pepper the TN masala market and more than double their turnover to Rs 90 crore in 2021-22. And the promos by TN’s masala players including entrants from the Punjabi belt, MDH, Badshah, Everest are getting more creative. Actor Jyotika’s hiatus in film appearances was hardly noticed. As Brand Ambassador, she carried the Sakthi Masala ads with as much aplomb as she did the Saravana Store Diamond Jewellery brand. From the days of standalone ground spices like turmeric powder and pepper, when homemakers would rather make their own sambhar and rasam mixes, every household now reaches out to popular ready mixed spices, podis and even easy do kits for homemade Biryani. The right masalas matter.
Covid-19 has been affecting the global economy for about 15 months now, yet global markets seem to be doing well. Dow Jones is at a lifetime high and the Indian markets too have been doing reasonably well. The BSE SENSEX is a mere 600 points shy of its lifetime high of 51,259 points made on February 16, while NIFTY is 234 points away from the level of 15,431 points. In India, companies have learnt how costs can be controlled. Travel and travel related expenses have come down significantly. FMCG and consumer companies have also adopted WFH with unbelievable savings and performance. The bulls have complete control of the markets and there are many factors which support them: 1) The FIIs or FPIs continue to invest in India; 2) the second wave appears to have been arrested in a major way and the infrastructure has improved significantly in the intervening period; 3) the monsoon forecast is positive; 4) inflation is under control and interest rates are quite soft; 5) there is enough liquidity in the system in India to spur growth. There is a talk of a third Covid wave happening and hopefully we would be well prepared for the same. The fact that there is a huge trust deficit about China post the pandemic, more and more companies globally are putting in place a policy of China plus one supplier. India is an automatic choice for the one spot and we are seeing traction on this front. Considering all these factors, it becomes almost a certainty that the stock markets would see a new lifetime high in the month of June 2021. That would give us another six months before the calendar year ends and the possibility that markets moving another 5-7% looks distinctly possible.
Today, the main problem with RPower is the name of Anil Ambani, in whom the markets unfortunately have lost confidence. According to one source, if one looks beyond the name, all signs of a turnaround can be seen. The company is reducing debt by up to Rs 3 lakh crore this year, which means reduction in interest burden by Rs 300 crore per annum. People have missed the fact that now RPower has an operating portfolio of 5,960 MW (about 6 GW). It has, since the last two precious quarters, been able to come into consecutive profits. The total liabilities of RPower come to about Rs 22 lakh crore. The total assets of RPower, going by replacement cost theory of power sector (1 MW of Rs 10 crore) works out to Rs 60,000 crore worth of assets. Meanwhile, RPower, which was having issues in servicing debt in the past, has now been able to do so in the last three quarters, albeit slowly. It was wilfully defaulting on debt, so that debt restructuring can be done. Now, the company is doing everything to cut debt.
For Tamilnadu, tiffin, TASMAC happy hours, and theatre visits are an integral part of life. Two years in a row, the Tamilian has been hit by withdrawal. Covid-19 has sunk every aspect that was familiar, comforting. On par with other service businesses, theatre owners have suffered irrevocable losses. According to G Dhananjayan, Producer and Distributor, in 2020 itself the loss from cinema shutdown stood at Rs 150-200 crore per month, and over Rs 1500 crore per month across the nation. Abirami Ramanathan, President of the Multiplex Owners Association of TN, owner of the Abhirami Mega Mall with a number of screens, laments the loss of livelihood for thousands who work in cinemas, and innumerable small businesses that cater to theatre visitors. Another wave? Most certainly it will be curtains for this world renowned entertainment industry. Often one talks about escaping dire straits by a slender thread. When Chennai-based SPI Cinemas and its owners, the Reddy Brothers off loaded 71% stake of SPI Cinemas to PVR Cinemas in 2018, Sathyam Cinema regulars were shocked. An outing to Sathyam was de rigour for many families. SPI Cinemas with Reddy Brothers opting to sell out at the right time reminds us of Captain Gopinath and how he let go of Air Deccan at that point. Quit while the going is good. This ongoing and uncertain theatre shutdown has upset the entire value chain causing loss of livelihood for all –.distributors, cinemas, producers, hell even the popcorn and ice cream vendors. When will that familiar sign on a huge screen come alive…”and now for your Feature Film please switch off your mobiles”.
The fast-growing digitisation, buoyed by the present Covid situation, has been the key driver for surge in content consumption in recent months. This trend is expected to continue in the longer time-frame as well. In this changing scenario, Saregama India, India’s oldest music label owned by RP-Sanjiv Goenka group of companies, has aligned its content strategy quite well to ride on this digital wave. During 2020-21, while the revenue was down by about 15% to, say, Rs 435 crore, the company’s net profit surged by over 160% to Rs 113 crore plus. The company, formerly known as The Gramophone Company of India, which owns the largest music archives in India (one of the biggest in the world), has consistently increased the monetisation of its IP (music, films, TV serials) over the last 13 quarters or so. Saregama, which has also expanded into other branches of entertainment – publishing, film production and digital content – has seen its music licensing revenue in 2020-21 going up by 20%. Digitisation and low cost of data in India remains the primary growth drivers of content consumption. This is further fuelled by the increase in smart phones, the rising popularity of OTT and social media apps.
Indian pharmaceutical majors Glenmark Pharma, Sun Pharma and Cipla are in early-stage talks with foreign vaccine manufacturers to bring in foreign vaccines into the country. Looks like they will follow a similar tie up like what Dr Reddys did with Russian Direct Investment Fund (RDIF) that markets Sputnik V vaccine developed by Moscow’s Gamaleya Research Institute of Epidemiology & Microbiology. With this move, now it is getting increasingly clear that the Centre was keen to “diversify” vaccine control to multiple companies as against only Serum Institute and Bharat Biotech. For a country with 130 crore people it is a little risky to bank on two companies to manage the entire logistics. Though the government earmarked Rs 35,000 crore for vaccination under its budgetary provisions, Serum was only given just over Rs 3,000 crore which was clearly not enough to meet the sudden surge in demand. Hence the country faced shortages due to this policy-level confusion and as things stand it will clearly take a month or more for regularising Indian vaccination programme.
While talking to the media, the 54-year-old Rajiv Bajaj, managing director of Bajaj Auto, never minces words nor ducks issues. He, like his father Rahul Bajaj, calls a spade a spade. He has been consistently opposing lockdown from Day One. So when Maharashtra Chief Minister Uddhav Thackeray imposed second lockdown on April 14, Bajaj was his usual self, critical. “Why everybody keeps looking at BSE and NSE but not MSMEs,” he asks, explaining that a company like Bajaj Auto can take care of its people but the small businesses will be hit even more harder this time he told news channel India Today. Bajaj Auto is a cash-rich company with over Rs 20,000 crore in reserves. Even if the company makes nothing, sells nothing then the standstill cost – salaries & wages — for the company works out to Rs 750 crore per annum. With Rs 20,000 crore reserves and non-operating income, he can take care of his company’s employees even if the company, hypothetically, is shut for the next 30 years. How many CEOs in the country can make that kind of bold statement? Well, it takes a Hamara Bajaj to talk for Hum Sab.
The Yusuf Hamied-led Cipla has been busy tying up with a US company. The non-executive chairman of $2.3 billion (revenue) generics maker Cipla’s US subsidiary Cipla Therapeutics and SIGA Technologies, Inc (SIGA), a commercial-stage pharmaceutical company focussed on the health security market, have entered into a strategic partnership to deliver sustained innovation and access to novel anti-bacterial drugs, particularly against bio-threats. On the development front, recently, the company had tied up with MSD (a trade name of Merck & Co Inc, Kenilworth, NJ, USA) to make, distribute investigational drug molnupiravir in India. MSD is developing molnupiravir in collaboration with Ridgeback Biotherapeutics and this agreement is a part of Cipla’s efforts to enhance global access to the treatment for patients affected by the pandemic. Meanwhile, Cipla, a global pharmaceutical company focussed on complex generics, is deepening its portfolio in the markets of India, South Africa, North America and key regulated and emerging markets. Globally, North America business grew by 6% year on year, led by continued expansion in market share of Albuterol and other assets along with growth in the institutional channel.
The steel industry is looking up and the domestic HRC prices rising by Rs 7,000 per tonne in April 2021 (they are trading at Rs 12,500 per tonne discounted to Japan landed prices) implies more head-room for price hikes. And, the PSU-run Steel Authority of India (SAIL) is in for a giant leap. According to a source, it has planned an aggressive expansion plan. The company’s plans were delayed by more than 10 years now, and were hurting its balance sheet. Not surprisingly, its net gearing increased from 0.04 times in 2010-11 to 1.35 times in 2019-20. With SAIL allowed to sell iron ore and, with most of its capex set to commission in 2021-22E, the source expects operating leverage to drive operating profit (EBIDTA) growth. One would recall that, way back in 2003-04, SAIL had launched its corporate plan for expansion and modernisation of existing facilities, aiming to increase its hot metal capacity from 12.7 tpa in 2003-04 to 20 tpa in 2011-12. In 2006-07, the plan was modified to target hot metal production of 25 tpa by 2009-10. As of now, SAIL has a capacity of 21 million tpa and its expansion cum modernisation plan is still ongoing. Also, in the past 10 years, projects have seen moving timelines. And, all this has affected SAIL’s balance sheet negatively.
Tata Nano had put firmly Tata Motors on the map as a passenger vehicle manufacturer. While initially received with rapture, it got sadly saddled with the label of a cheap car, which led to the slowdown and final phasing out of the model. But the perky little Nano may yet live another day. Within Tata Motors, there is talk –more than just speculation –that Nano may be rebirthed as a fully electric vehicle (EV). As a car of the future this will be sweet vindication of Ratan Tata’s vision.
TN tipplers build up a massive thirst long before sundown each day. A unique system here is that the state sells liquor through the Tamil Nadu State Marketing Corporation (TASMAC) outlets. No wonder critics are raising the question, with raging Covid-19, shortages of vaccine, oxygen, beds and drugs like Remdesivir, is it important to keep booze flowing through state run machinery? The firm response even during the first lockdown, TASMAC is non-negotiable. Why? The state’s major chunk of revenue comes from a tipsy Tamilian who must have his spirit elevated at any cost. Guess what? On Saturday (April 25) the revenue flow from booze stood at a steady Rs 250 crore, never mind the tippler tottering after. In 2018-19, TASMAC’s revenue was Rs 31,158 crore. Neighbouring Union Territory Puducherry has already banned sale of any form of liquor. The irony, there was a time when droves of happy-hour seekers drove to Pondi and enjoyed the less taxed product in abundance! The story goes that some ruling party heavyweights objected to populist cash incentives that would be introduced “once we come back,” before the election by the CM as they feared the exchequer would bottom out. They were pacified: “this money will come back to us through TASMAC.” This is a state where women voters have time and again rallied against the ruling parties for openly encouraging their men to tipple and topple, but to no avail. Die hard drinkers!
Business and economy need people to come together, work together. But the deadly virus also needs this vibrant togetherness to grow and circulate, mutate and spread. As long as this virus stays unsubdued, not only India’s $5-trillion-economy dream is threatened but also its operational $3-trillion economy, now staring at incalculable toll. In the absence of any vaccine promise, we opened with brave slogans – #LivingWithCorona #MyFamilyMyResponsibility etc. For a while it looked like working — with farmers’ agitation in full flow; people thronging to rallies in poll-bound states; mandis, malls and pubs drawing footfalls; even pilgrimage tourism (for devotees with Covid-19 negative report) reviving via Haridwar Kumbh Mela (key dates being April 12, 14, 21, 27 though crowds thinned down after PM Narendra Modi’s appeal to seers on Apr 17). But now, #LivingWithCorona is not working as lockdown hits state after state amid a ferocious Covid resurrection. The April 26 count: over 3.5 lakh news cases and 2,812 deaths in 24 hours. Clearly, the only deterrence against the virus is Vaccine. With phase 3 trials showing Bharat Biotech’s Covaxin’s efficacy against severe Covid-19 disease at 100% and an overall efficacy at 78%, Shashi Tharoor fans couldn’t have asked for more. Also, with US agreeing to lift embargo on ‘vaccine materials’ following PM Modi’s call with US President Joe Biden, India’s vaccine juggernaut – led by Serum Institute’s Covishield – should be back on track. Already, after 100 days of world’s largest vaccination drive, 14.2 crore jabs have been given. Hopefully, the MRP hagglers won’t give tough time to vaccine makers now.
The post on LinkedIn by Biju Janata Dal Rajya Sabha MP Amar Patnaik has come in for harsh criticism. Patnaik in his post wrote: “I appeal to top wealthy Indians/ Companies! Can you shoulder the burden of vaccinating at least 25% of Indians as part of your duty to Motherland? In fact, some of you can do from only one year of profits! If there was ever a time to give back, its NOW! I am sure your shareholders would agree.” He may not have expected this kind of outburst. There were 1,119 likes but 238 scathing comments. Most of the comments asked Patnaik why he was only singling out the business community! Corporate India was already paying taxes and some of them were giving tons of oxygen free besides contributing to PM Cares Fund. Why are you begging someone else to do it? It is the job of the government to do it when you have the infrastructure, resources and capital. One common question raised by most of them was what about ‘corrupt’ politicians and bureaucrats who have crores stashed abroad? Their net worth would be equally high, they hinted. In essence, the message was loud and clear: Charity begins at home. First appeal to fellow politicians before asking others to chip in. Quite.
Speed money is a term regularly used to get work done when dealing with the various government agencies. ‘Green Tax’ was the term used to get work done from the environment ministry in the previous government. With the current government bringing in more transparency and plugging loopholes to make it tougher to make ‘money on the side’, the politicians too are becoming smarter –finding ‘legitimate’ ways to take speed money. I learnt of one such method while interacting with an industrialist of a leading diversified listed conglomerate. This group was to set up a new manufacturing plant in one of the states and was given two options by the politician. The first was the conventional cash. The second option was to invest in the equity capital of an unlisted company at ridiculously high valuations. Since he did not hoard black money, the industrialist chose the second option. The modus operandi was simple. His group invested in a company that had no operating business, hence was basically a paper company or a shell company. On paper it looked like a fraudulent transaction but would never get questioned. This company had many such ‘investors’ who invested to get their work done. ”I am willing to spend money and pick shares in such shell company, even if at a later date I have to write off the investments,” he explained. Ingenuity thy name is politicians!
India’s primary market is expected to be buoyant in FY22 too. In FY21 over 30 companies raised around Rs 31,000 crore via initial public offer (IPO). With the secondary market bouncing back by nearly 100%, corporate India is getting ready to tap the primary market big time. And this includes the much-awaited IPO from the Life Insurance Corporation Of India. But, all plans seem to have gone awry with the resurgence of the second wave of Covid-19. Perhaps the first victim of that wave seems to be the Kolkata-based diversified conglomerate Apeejay Surrendra Group’s The Park Hotels IPO. It had received regulatory approvals in March 2021 for its Rs 1,000 crore IPO. But, if the market grapevine is to be believed, the luxury boutique hotel chain has decided to put IPO plans on hold for time being till the market conditions improve. But, the decision to defer its IPO has not impacted the company’s expansion plans. It has signed six new properties across its various brands in the last six months at Leh, Patiala, Goa, Port Blair, Coimbatore and Pathankot. The group also plans to add more outlets of its iconic tearoom Flurys and expand into the rest of Bengal, Navi Mumbai and New Delhi. Apeejay Surrendra Park Hotels runs four brands under ‘THE Park’ name. This includes: THE PARK, THE PARK Collection, Zone By The Park and recently launched Zone Connect. The Group also owns the heritage eatery and QSR chain of Flurys. Besides hospitality, the 100-year old group has business interests spread across industries such as shipping, tea, real estate, education, and owns retail brand, Oxford Bookstores.
Business legend Dhirubhai Ambani would have been crying the blues had he been alive today. His alma mater in Gujarat’s Junagadh city is in shambles. The science stream of the government-run Swami Vivekananda Vinay Mandir, where not only the invincible Reliance Industries founder, son of a school teacher, but several state biggies once studied, has had to be closed down due to lack of enough students. In its halcyon days, the science stream, which was started in 1976 in the historical school (formerly Bahadur Khanji School in British India), had as many as six classes each for Class XI and Class XII. With each class comprising about a hundred students, thousands have passed out of the school with a scientific temper. But, according to Principal Pratibha Nagrecha, with the mushrooming of self-financed schools and private tuition classes, the number of students at the school started falling over the past four years with the result that the science stream had just 14 students in the latest academic term as a result of which it had to be shut down. Mayor Dhirubhai Gohil, an alumnus says that teachers of this sarkari school were so dedicated that they often even paid the fees of poor students from their pocket but insisted on a 100% attendance that perhaps did not go well with the students, he feels.
The new political brawl is not about vaccine-hesitancy or vaccine-denial but about the vaccine-scarcity, as the nation is hit hard by the second wave of pandemic. Mumbai, which is staring at a re-lockdown, saw supplies go down by half to about 22K jabs on April 10. Average jabs per day have touched 3.5 million a day versus the combined capacity of 2.4 million a day between Covaxin and Covishield. And there is no immediate capacity expansion in sight as Serum Institute CEO Adar Poonawala has written to the Government for Rs 3,000 crore to scale up operations – failing which it will approach banks for loans. Clearly, an opportunity to stay ahead of the curve has been frittered away. Meanwhile, other five vaccines, including J&J via Bio E, will be made available not before October! Suddenly, this realization hits you: Has India failed to reap the dividends of its global vaccine-science leadership due to investment hesitancy? Our failure to comprehend that in a pandemic-like extraordinary conditions, the free-market as well as the atmnirbhar economy operates not only on the principles of demand and competition, but also legitimate corporate profits – and the combo of incentives (guaranteed purchase agreements) and risk capital (for research and capex) extended by the State. This is evident in America’s successful vaccine roll with the state funding private pharma majors. Hopefully, there will be some aatm-manthan when Prime Minister holds the next Covid-19 review meeting with Chief Ministers.
Anil (Billy) Kapoor the legendary advertising man and former chairman of FCB Ulka passed away on April 12 at Sir HN Reliance Foundation Hospital & Research Centre, Mumbai. He had successfully battled pancreatic cancer almost a decade ago but it recurred aggressively a couple of months ago. He had been living in Singapore for the last several years and was flown back on Saturday. Unlike the fanfare behind the big brands he promoted, his funeral was a private affair. He along with Ranjan Kapur of O&M, Mike Khanna of HTA were referred to as the ‘Punjabi Club’. The trio controlled the era of big brand advertising. Billy was the last to go. One may recall what Ambi Parameswaran wrote when Ulka turned 60 in his column: “It was Bal’s (founder Bal Mundkur) bold move in 1988 that saved the agency. Or it was Anil Kapoor’s courage of conviction that he could rebuild Ulka in a new image. Anil joined as MD in 1988, identified some key managers to re-motivate and retain (Shashi Sinha and Niteen Bhagwat are still in FCBUlka/IPG Group); Anil also managed to rope in a few more – Arvind Wable, Nagesh Alai and yours truly.” Kapoor is survived by his wife, Rita, daughter Aruna and son Ram Kapoor who is a well-known TV star.
An ambitious target of one billion doses of Covid-19 vaccine and financial aid of $1 billion to make them in India seems to be the most heartening news of the day. The American multinational Johnson & Johnson (J&J), operating in 60 countries, seems to be routing that kind of investment as “grant” from two large countries where the pharma major operates. It is learnt that the Hyderabad-based company, Biological E, which has been appointed as J&J’s contract manufacturer earlier this year, will soon start bridging clinical trials for which they have sought official permission from Indian regulators. Biological E, set up in 1962, and partnering with global majors, supplies its vaccines to more than 100 countries. It has supplied more than two billion doses of vaccines in the last decade alone. Since J&J’s single-shot vaccine is already approved by the US regulator and is currently administered across the United States, they would only need a bridging trial in India, which means a small group of 1,000 participants would take the shot before it is officially approved. Bridging trial for J&J’s vaccine is expected to be on similar line of that done by Russian Covid19 vaccine Sputnik V by Dr Reddy’s Laboratories and the trial conducted by Serum Institute for the Oxford University-AstraZeneca Coronavirus vaccine.
The Shree Cement-East Bengal deal, which was announced with lots of fanfare last September, is yet to get cemented. The final agreement – drafted by law firm Khaitan & Co – has not been ‘signed and sealed’ till now though the deadline for the same was March 15. Sports enthusiasts were hoping West Bengal Chief Minister Mamata Banerjee would intervene to iron out the differences. But that has not happened with the state witnessing one of the most intense Assembly elections in the recent history. Rumours that East Bengal is not eligible to participate in the forthcoming Hero Indian Super League (ISL) matches have got muffled amidst the high-decibel and cut-throat battle in Bengal between Mamata Banerjee’s Trinamool Congress and the Bharatiya Janata Party (BJP). Those closely following the state’s football development claim the rumour is not unfounded. To participate in the ISL, The Club – rechristened as Shree Cement East Bengal Foundation, has to give bank guarantees by April 12, 2021. “If the definitive agreement does not get signed, Shree Cement will not give bank guarantees. And, if the bank guarantees are not given, The Club will not be able to take part in the ISL,” they apprehend, and claimed the deal between the two may fall through. It may be recalled this 101-year-old iconic football club, popularly known as Red & Gold Brigade, got a jolt when its lead investor Quess Corp pulled out from the two-year agreement in July 2020. Being a popular club among the migrants, the Kolkata-based Shree Cement, controlled by the Bangurs, entered the scene picking up 76% stake.
The much-awaited Glenmark Life Sciences’ initial public offer (IPO) might get bigger. It is reliably learnt that the parent firm Glenmark Pharmaceuticals is likely to raise around Rs 2,000 crore and they plan to file the prospectus before the SEBI sometime in April or May with a float likely in June 2021. Reportedly, Glenmark Pharmaceuticals had tried to sell minority stake in its API (active pharmaceutical ingredient) business a while ago but due to depressed market conditions those off-market deals never progressed beyond a point. Glenmark Pharma’s CMD Glenn Saldanha has a clear vision of unlocking value of its API business. In keeping up with this vision, the parent firm Glenmark Pharma had transferred its API business to Glenmark Lifesciences in December 2018. Today, Glenmark Lifesciences partners the world’s top 20 generic companies to supply over 130 APIs produced at its five state-of-the-art plants in the country. It has more than 700 customers across 65 countries. All these are visible in the company’s third quarter FY21 topline. It has posted consolidated revenue of Rs 501 crore as against Rs 409 crore previous year, a growth of 22.35%. Given its strong parentage, the retail investors will be keenly waiting for this IPO.
The stock market is booming with the Sensex currently hovering around 50,000-mark. At this level the market capitalisation works out to around $2.7 trillion. It may be recalled that at the beginning of the Covid-19 pandemic in March 2020 the Sensex had crashed to 25,638 points. So did the market cap to $1.3 trillion, its lowest since March 2016. Now, there are visible signs that the economy is picking up if one looks at the performance of the sectors like auto, infrastructure, healthcare, IT and FMCG. A number of brokerage houses seem to be bullish; some are predicting that Sensex will touch the 100,000-mark by 2025. Such a bullish outlook is unleashing a buying frenzy among investors. The herd mentality is evident. Nearly 6.3 million demat accounts were added during April-September 2020 to take the total demat accounts to 2.13 crore. Work from home saw people investing in both primary and secondary markets. Thirty companies have already raised around Rs 31,000 crore via IPO in FY-21. But, post-listing, are they all doing well? Not really, says The Hindu Business Line report. “India’s IPO market boom, which began exactly a year ago in March 2020, with the SBI Cards offer, is showing signs of fatigue. Every second stock that posted gains on debut in the last one year has slipped.” So, the opportunity to make a quick kill post listing is clearly waning. Now, some of the fly-by-night operators are recommending below par or penny stocks. With the second wave of pandemic hitting the country, it would be advisable for investors to ignore the conventional market adage “Buy the rumour, sell the news.”
V-Guard Industries’ Founder Chairman and philanthropist Kochouseph Chittilappilly, in a no holds barred chat with Kerala’s popular Food Vlogger Mrinal Das Vengalat, dropped a bombshell that Yusuff Ali, CMD of the multi-continent Lulu Group, may not be the richest Malayalee of Kerala origin, despite a net worth of $4.8 billion! Chittilappilly, a self-made billionaire, said the combined personal net worth of the UDF and the LDF politicians, who ruled Kerala by “default turns” over the last 20 plus years, could surpass that of Lulu’s Ali. If one were to extrapolate Chittilappilly’s observation to the entire country, then the combined net worth of politicians could well be over billions of dollars, surpassing that of combined networth of top 10 industrialists. The money-spinning arithmetic of politicians only gets eye popping every year, especially in the light of the letter written by the recently transferred Mumbai Police Commissioner Param Bir Singh. In his letter, he alleged that the Maharashtra Home Minister Anil Deshmukh had asked the arrested Assistant Police Inspector Sachin Vaze to collect Rs 100 crore every month. And the maths that was allegedly given was: “There are 1,750 bars and restaurants in Mumbai. If you collect Rs 3 lakh on an average that works out to Rs 50 crore. As for the balance amount, there are other avenues.” Is India a land of “mega bucks” for the renegades?
The Covid-19 vaccination drive is gathering momentum across India. But the Centre’s decision to cap the vaccine price at Rs 250 at the private hospitals has increased worries of Serum India Institute which has a large inventory of Covishield vaccine. The company is expected to take a big hit in its balance sheet. This has been a serious issue for debate within SII. Cyrus Poonawalla, Chairman of Poonawalla Group, which includes SII, holds that SII should focus on its traditional business of production of the immunobiologicals, which were imported into India at high prices, instead of ramping up of Covishield vaccine which is priced way below their expectations. Poonawalla Senior belongs to the generation that continues to believe in the Old is Gold strategy. Moreover, the Centre is yet to issue guidelines for its exports. However, Poonawalla’s son and SII CEO Adar Poonawalla believes that despite a temporary hit in the balance sheet, the company can still offset the losses once the exports are allowed. He is the CEO of Industry 5.0 generation and wants to chart his path that will be followed by others. So, father and son are now engaged in brainstorming. We will have to wait to see whose strategy finally pays off.
The world’s largest cricketing stadium opened to a deluge of media headlines. And also, to one of the globe’s wealthiest: Lakshmi N Mittal, Chairman & CEO of the $53.3-billion ArcelorMittal, the world’s largest steel and mining company. Mittal was spotted at the Narendra Modi Cricket Stadium, Ahmedabad along with BCCI Secretary Jay Shah, and Congress Leader Rajiv Shukla, enjoying the fourth test match between India and England. According to the Gujarat government’s official version, Mittal visited the Statue Of Unity at Kevadia, less than 200 kms from Ahmedabad. But the corporate observers are attributing the timing of the visit to more than that. They are connecting dots. It may be mentioned that during the same time, Prime Minister Narendra Modi was in Kevadia to address the concluding session of the annual conference of top officers of India’s Armed Forces. It is speculated that Mittal met Modi and Chief Minister Vijay Rupani before the PM’s address and after that watched the cricket match.
In the mid-eighties and early nineties, the Indian promoters literally made hay in the absence of a market regulator, according to the Mumbai-based brokerage firm Altina Securities. The modus operandi was simple: raise money via private placement. To illustrate, if Company X had a post-issue capital of Rs 100 lakh, the break-up was: promoters Rs 40 lakh and public Rs 60 lakh. Many promoters – just before the IPO – privately placed nearly 75% of their holdings. Thus, Post IPO, the Rs 100 lakh equity base would be: Promoters Rs10 lakh, Private Placement Rs 30 lakh & Public Rs 60 lakh. There have been instances where the fly-by-night promoters received kickbacks for the project. This effectively reduced their skin in the game. Little wonder many companies which resorted to this route have vanished, leaving the small investors high and dry. Some of the vanishing companies are: Bonanza Pharma, Atash Industries, Amrut Industries, UCL Plastics, Rasik Plast, Indiana Diary. Senthur Shoes, Printed Circuit Board, Alsa Marine and Premier Housing.
JSW Group Chairman Sajjan Jindal is hogging the limelight for his announcement to invest Rs 22,000 crore for the expansion of Dolvi plant in the coastal Raigad district in Maharashtra with an annual production capacity of 14 million tonnes. Already, the Maharashtra Industrial Development Corporation has notified 750 acre of the total 1,600 acre land. Jindal’s investment decision has raised eyebrows especially among those in the ruling Shiv Sena. Many in the Sena know about the proximity Jindal enjoys with Prime Minister Narendra Modi. The Sajjan Jindal group was also associated with the redevelopment of Kedarnath and Badrinath when the holy cities were severely devastated by floods and landslides in June 2013. It is believed that Jindal had organised the PM’s meeting with Pakistan’s former PM Nawaz Sharif. Against this backdrop, some of the Sena leaders are wondering why Jindal agreed for big investments in Maharashtra which is now ruled by their party, in alliance with the Congress and the NCP, instead of any of the BJP-ruled States. Clearly, all businessmen know the consequences of putting all eggs in one basket. There are lessons galore of businessmen who forget this simple principle.
Thanks to pandemic work from home has become a way of life. Most CEOs are operating out of their homes or farmhouses. Take for instance how Arun Nanda, chairman of Mahindra Holidays & Resorts India, managed his company’s affairs. According to informed sources, Nanda has been calling the shots from Tungi, Lonavala for most part of the year. And his efforts saw company’s Q3FY20 net profit jump 63% to Rs 41 cr. Likewise, superbanker Aditya Puri, former MD & CEO of HDFC Bank, worked most of the last year between Mumbai and Lonavala. Puri who has joined The Carlyle Group as a Senior Advisor, went to Sandoz House, Worli (that’s where he started his innings with the bank) for his send-off organized by the current managing director Sashidhar Jagdishan. It was an e-Event for the rest of the staff. Likewise, Ashok Sinha, former chairman of BPCL, who sits on several boards did not cross the threshold of his Peddar Road flat since lockdown was clamped down and has managed all his affairs via digital meetings. Covid has indeed put the fear of God among all. Earlier, many were sceptical about the Indian vaccines. But, now it is learnt that all of them are fed up of operating out of their homes and are keen to take the jab so that they can travel freely
Pump price for petrol includes excise duty levied by the Centre – with the States adding VAT to it, which varies from state to state. Higher the VAT, higher the fuel prices in that state. So, why are the Opposition parties throwing a fit on petrol breaching the Rs100-a-litre mark? It may be recalled that after years of deliberations, the current market-led pricing mechanism got stabilized since its implementation in June 2017. Hit hard by Covid-19, neither the Centre nor the States are in a position to reduce levies, which constitute 60% of the retail selling price of petrol, and more than 54% of diesel. Domestic prices should cool down hopefully in line with the projected international trends. If the government is forced to tweak taxes to moderate fuel prices, it will have to dismantle the whole reform process aimed at fixing market-determined prices. The economic reforms implemented after extensive deliberations and consensus over a long period must be kept out of opportunist politics. FM Nirmala Sitharaman is right in calling petrol price increase a ‘Dharmasankat.’ Clearly, both the Centre and the States have to abide by the ‘Raj Dharm’ to find solution to this sankat together.
The meteoric rise and dramatic fall of Rana Kapoor could make for an interesting TV serial on the OTT platform. Two books have already been written on the man who co-founded Yes Bank with his co-brother-in-law Ashok Kapur. (Ashok was killed in Mumbai terror attack). Pavan C Lall, has penned Yes Man: The Untold Story Of Rana Kapoor. Tamal Bandyopadhyay in his book Pandemonium: The Great Indian Banking Tragedy, rips the façade off the smartly constructed corporate image of Yes Bank, exposing promoter Kapoor’s questionable deals. The author goes on to say that the RBI saw through the game played by Kapoor. Alarmed at the speed with which the NPAs were getting resolved, the regulator started monitoring Yes Bank closely. Finally, it was an anonymous letter sent to then RBI Governor Urijit Patel in September 2018 about the hanky-panky deals at the bank that got the central bank into action. But soon they discovered that Kapoor had many moles around. Every move contemplated by the RBI was relayed to him in real time. It took a while for the RBI to identify the suspects and isolate them from the investigative process. When Kapoor was told in one of the meetings by the RBI that he had to go, he broke down, calling Yes Bank his son, his only son — beside his three biological daughters. But such histrionics with eyes brimming over with tears didn’t move anybody. Presently, he is cooling his heels at Taloja jail on the outskirts of Mumbai.
It is a well-known fact that most businessmen like Rahul Bajaj, Keshub Mahindra, Ajit Gulabchand have a very good equation with the NCP Supremo Sharad Pawar. So the news that the Adani Group chairman Gautam Adani is in the same league comes as no surprise. In fact, in 2013 Pawar had attended Adani’s son’s wedding in Goa. Now, it is reliably learnt that the Maratha strongman with a view to attract investment in Maharashtra from the Adani Group is pulling out all the stops to ensure that Adani’s thermal power project comes up in the coal-rich Vidarbha region without any hitch. Earlier, Pawar guided Adani when he took over the Anil Ambani-controlled Reliance Infrastructure, which runs the Mumbai distribution business with 30 lakh customers. Pawar’s strategy of rolling out red carpet seems to be yielding dividends. Now, the Adani Group has lined up a slew of investments in Maharashtra. They have picked up a majority stake in Mumbai International Airport from the GVK Group, securing the contract for the Rs 16,000-cr Navi Mumbai airport. Adani Transmission has bagged the contract to construct 400 kV substation at Vikhroli, for transmission of about 1,000 MW in Mumbai. The company will also construct another line between Aarey Colony and Padgha to evacuate another 1,000 mw. Clearly, Pawar knows which horse to back.
It may be recalled that during the UPA regime the Union Minister for Science & Technology Kapil Sibal had flaunted a $32 tablet which would provide Internet access to the less fortunate students. Now that the Covid-19 pandemic has pushed a large section of students towards online schooling, it’s time to ask Sibal what happened to his pet project? Had it translated to a tablet in each student’s hand, there wouldn’t have been such a digital divide today. Then Sibal had announced the tablet as a cheap, simple computer. First as ‘Shaksat’, then renamed as ‘Akash’, and upgraded to ‘Akash2’. But despite the abracadabra moment, the project failed to deliver. Today, probably an IIT student could develop easily a low-cost tablet. But at that time, it appeared to be a magical moment: parts to be sourced from China or Taiwan via a Canadian company and then assembled in India. It is surprising the vocal politician hasn’t whispered a word about it. Has the project been given a silent burial? Is this the reason why he is not expressing any views on digital divide as he fears it would bring to public glare the failure of Akash tablet in an era of whataboutery!
An RBI working group has proposed allowing corporate houses to set up banks in India. Suddenly, former RBI governors and deputy governors want to protect the country from business houses entering the banking arena. Over the last two years, IL&FS, DHFL, Yes Bank and PMC Bank have collapsed due to their weak financial position. The latest to the list of bank failures is Lakshmi Vilas Bank, which was merged with DBS Bank. What we need to do is to have a strong deterrence so that we don’t see a repeat of YES Bank. According to KV Kamath, former MD & CEO of ICICI Bank, in his interview to CNBC TV18, the way forward is heavy investment in technology by the regulator so that on a real-time basis the creditworthiness of individuals or companies is made available. Seems a doable idea.
Cartelisation among manufacturers is a known fact. OPEC is the biggest global example. Close to home the Competition Commission Of India, which came down heavily on cement companies sometimes back, has now set its sights on the domestic steel companies. It is believed that the steel companies have increased their prices in unison in the last few months. But, recent developments in the distribution trade in Mumbai – liquor and paper – are quite an eye-opener. With businesses shuttered for nearly a year, those running hotels & restaurants, printing presses, and paper distribution have been hit by severe liquidity crunch. Most of them have not been able to pay their vendors, suppliers, or staff. After the Lockdown was lifted, the restaurant owners, printers and media houses placed fresh orders with their respective distributors. But they were told to clear some of the backlog. Irked, some of these businessmen tried tapping new distributors but they were surprised to learn that the liquor and paper trade had a list of outstanding of different businesses or credit information of bad borrowers. The distributors felt if they supply today their fellow traders would lose. So they decided to unite. It is proving to be a win-win for all.
The hottest topic being discussed by business tycoons these days is not the Union Budget but the Which, When, Where (and maybe even, if) and How to get the Covid-19 vaccine. Before India rolled out its own versions, some wealthy individuals were rumoured to have rushed overseas (read: Dubai) to get their shot. Now there are whispers about certain famous people making private arrangements to get the vaccine out of turn. Because, as per the Government diktat, in the current phase, the vaccine is being made available only to the frontline healthcare workers. Such clandestine shots may give them immunity but without the all-important vaccine certificate. They are confident, however, of procuring one with some jugaad in due course. One person who won’t have to resort to any such subterfuge is Dr Swati Piramal, vice chairperson, Piramal Enterprises. The wife of billionaire Ajay Piramal, who is a qualified doctor, recently got her Covid-19 shot at the BKC jumbo vaccination center in Mumbai, along with staff of the Gopikrishna Memorial Hospital. Piramal took the Covishield vaccine made by the Serum Institute of India and promptly posted photos of the said deed on Facebook.
Legendary investor Warren Buffett said: “Unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market.” The stock market is not for the weak-hearted – nor for Inside Trading. An NSDL campaign is creating awareness among the retail investors not to fall prey to the Insider Trading. If you are an equity investor, chances are that at some point in time you would have been offered an ‘insider tip’ to conduct a trade in a particular stock to make quick money. If the tip turns out to be false, you could end up losing money. If the Tip turns out to be true, although you might make quick money, it could land you in legal trouble. Insider trading is a punishable offence, as per the SEBI. The BSE, the NSE, and the SEBI keep routinely tom-tomming about such instructions – and yet the greedy investors keep falling prey to such Tip messages. Looks like investors seem to blindly follow the investment philosophy of Gordon Gekko in the movie Wall Street, “Greed, for lack of a better word is good.” And we know where insider trading and greed got Gekko and his ilk.
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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.