All
Politics
Business
Entertainment
Sports
Celebrities
Time to keep fingers crossed as an Indian team, trying to juggle with a number of questions in batting and bowling, will get down to the serious business of the first day of the first Test at Headingley, Leeds on Friday. India’s new captain Shubman Gill (three Tests in England) will have a brush with the maverick Ben Stokes who has led England in 33 Tests and won 20 for a 60.61 % win- record and with an 18- led-13-win record at home for a 72.22 positive percentage. Anyway one looks at it, the odds are stacked against India and Gill. But the charm of multi-day Test run-ins is all about outsmarting the rival team with the bat and ball for near about 450 overs if a contest lasts almost five full days and India has the opportunity to play (out of its skin) to baulk the home team which is a touch short without express fast bowlers Mark Wood and Jofra Archer. England will still have a pace bowling apparatus to trouble the inexperienced (in English conditions) top and middle order in Yashasvi Jaiswal, Sai Sudharsan, Karun Nair (recalled after many years), Dhruv Jurel and Gill. Fortunes could fluctuate in a matter of a few overs, and the likes of Jaiswal & Co have their task cut out. On the bowling front, Jasprit Bumrah and Mohammed Siraj have the experience, but on a day when a team has to bowl 90 overs, the Indian team could be hard-pressed. In these circumstances Gill, while batting and Bumrah, while bowling hold the key for India to take control of events.
There is a saying in Hindi, Aapko Aam khanese matlab hai ya ghutli ginnese? For Dr S Ramadoss and his feuding son, Dr Anbumani, the PMK and its symbol, the Mango have come to a collision point in their succession battle for taking over the party. In this bitter battle, not just Dr Anbumani but even his wife Sowmya has been targeted by Dr Ramadoss senior stating that her ambition has made the father-son dispute irrevocable. He claims that even as he had brought the alliance with AIADMK to almost closure in 2024, Sowmya sabotaged it with her hectic hospitality, inviting Annamalai to their Thailapuram residence and overturned the alliance as BJP was her choice. The impasse has come to a point where Dr Ramadoss says Dr Anbumani is no longer the party head and leader, even as the son insists that his term lasts till 2026 according to the Election Commission. Going a step higher, Sowmya has taken the matter to the Gods. She travelled with her two daughters to Rameshwaram, Dhanushkodi and to the temple of Nambu Nayaki Amman, a temple where thousands of devotees seek the Goddess’s blessings for their problems. This is highlighted by a ritual …fresh green turmeric is ground on stone grinders here then the turmeric paste is offered to Nambu Nayaki. Sowmya, seasoned bahu and politician went a step further …. She offered luscious looking mangoes too , to the Goddess …probably praying that her husband succeeds in getting both party and leadership in this bitter power struggle in the PMK. Considering that 80 % of the followers are silently throwing their hats in favour of Dr Anbumani, the turmeric and mangoes could well be a winning combo.
In view of the deteriorating situation because of the ongoing conflict between Iran and Israel, the Government of India launched Operation Sindhu to ensure safety and security of Indian nationals in Iran. As a first step, the Indian Embassy has evacuated 110 Indian students from northern Iran, assisting them safely to cross over into Armenia on June 17. The students have travelled by road to the Armenian capital, Yerevan, under the supervision of our Missions in Iran and Armenia. These students departed Yerevan on a special flight at 1455 hrs (2.55 pm) on June 18 and will arrive in New Delhi in the early hours of June 19 as part of the initial stages of Operation Sindhu. The Government of India is grateful to the Governments of Iran and Armenia for the smooth facilitation of the evacuation process, the MEA said in a release. India accords highest priority to the safety and security of Indian nationals abroad. As part of the ongoing operation, the Indian Embassy in Iran has been assisting large numbers of Indian nationals in moving from areas seeing increased hostilities to relatively safer areas within the country and to subsequently evacuate them using the available and feasible options. Indian nationals in Iran have been advised to stay in touch with the Indian Embassy in Tehran through its emergency helpline, and with the 24×7 Control Room established by the MEA, in New Delhi.
PM Narendra Modi’s 35-minute phone call with the U.S. President Donald Trump since the April 22 Pahalgam terror attack was clearly aimed at sorting out misgivings back home. He told firmly that no mediation or trade deal led to cessation of hostilities with Pakistan. The highlight of the phone call was when Prez Trump asked PM Modi if he could visit the U.S. on his return from Canada. PM Modi politely declined the offer citing his prior engagement of visiting Croatia. But, interestingly, Prez Trump has accepted PM Modi’s to visit India for the QUAD meeting later this year. As per Foreign Secretary Vikram Misri read out of the phone chat, “PM Modi told President Trump clearly that during this entire series of incidents, never was talks held at any level on India-America trade deal and mediation between India and Pakistan by America. The talks regarding cessation of military action was held directly between India and Pakistan under the existing channels established between both militaries, it was done at Pakistan’s request…” He shared that the phone-call overtly clarified that India, “has never accepted mediation, does not accept it, and will never accept it. There is complete political unanimity in India on this issue.” Meanwhile Congress leader Jairam Ramesh was dismissive about Misri’s statement. He said “Understand the ‘triple jhatka’ that the Indian foreign policy and diplomacy has received. Today Field Marshal Asim Munir whose provocative, incendiary, inflammatory comments are directly linked to the Pahalgam terror attacks…is invited for a one-on-one special lunch with President Trump.…” BJP spokesperson Amit Malviya hit back calling Jairam “a congenital liar — much like Rahul Gandhi. He is now peddling yet another falsehood, claiming that Foreign Secretary Vikram Misri’s statement doesn’t match the U.S. readout — while dramatically waving his phone around. ” But here is the catch: the readout he is citing...
With L&T, Adani and Birla Group already having bauxite mining licences in Odisha’s eastern ghats, the focus now shifts to Anil Agarwal controlled Vedanta Aluminium. This is because Vedanta, India’s largest aluminium producer does not have its own captive bauxite mine in Odisha since 2007 and buys bauxite from Odisha Mining Corporation. The current BJP-run government in Odisha is getting ready to hand over to Vedanta Sijimali bauxite mining which has 311 million tonne bauxite deposit covering 1549 hectares at Koraput. Corporate observers say this is an important move after Vedanta failed to get mining rights in Niyamgiri, Koraput district recently. The only hitch is protests from the tribal leaders. And the Supreme Court ruling here is very clear, Vedanta can mine bauxite provided majority of tribals give their consent. The general feeling is Vedanta Group chairman Anil Agarwal is an old hat in this game of winning such battles. He will easily wade through ongoing tribal protests at Sijimalli Hills since the opposition numbers are much smaller. It seems Agarwal has the backing of the state’s Revenue Minister Suresh Pujari who is pulling all stops to encourage businesses to set base and expand in Odisha. And the government walked the talk by not allowing social activist Medha Patkar from entering Rayagada for the next two months to stage protests against Vedanta’s mine project. This gives Vedanta Aluminium enough time to win trust and confidence of local tribals.
The possibility of political merger of Maharashtra’s most powerful political family, the Pawars, has been ruled out by the family patriarch Sharad Pawar. There had been much speculation following the uncle-nephew (Ajit Pawar) sharing dais on multiple occasions. Underscoring that those aligned with the Congress ideology would not accept the BJP and view them as opportunists, senior Pawar also stressed how those who had left him in his political journey had ended up defeated out of the electoral race. His daughter Supriya Sule, who has now emerged as a strong voice within the NCP-SP since her takeover as the working president, is said to be averse to the idea of reuniting with her cousin. Sharad Pawar’s partymen, known to lead sugar industries and banking institutions, have been reportedly itching to return to power. Sharad Pawar’s good personal equations with PM Narendra Modi clearly are not proving fruitful for his partymen. Being out of power also isn’t helping the senior Pawar faction particularly with Ajit Pawar, known to leverage his position as Maharashtra’s finance minister, for his partymen. Ajit Pawar continues with his mission to poach from his uncle’s party with his official position clearly giving him an edge in the poaching exercise. The BJP too seems to be poaching party leaders from opposition parties with a vengeance and this exercise seems to have picked up steam now with the local body elections around the corner.
Cricket fans always look for an English summer to keep them excited for a period around five months. This season, a major event of the English Summer was the ICC World Test Championship (WTC) final that South Africa won, bringing down the mighty Australians at the home of cricket, the Lord’s cricket ground. Kudos to skipper Temba Bavuma, Kagiso Rabada and Alden Markram the rainbow nation staged a second innings comeback to trounce the Aussies. While the WTC final riveted attention on both teams, another burning topic the cricket fraternity in India is glued onto is the England and Wales Cricket Board (ECB) decision — after consulting the BCCI — to retire the Pataudi Trophy and rename the England-India Test series after Jimmy Anderson and Sachin Tendulkar, both the nation’s outstanding cricketers who dominated the scene for over two decades. The unveiling of the Anderson-Tendulkar Trophy has been put off because of the Ahmedabad air crash victims. The trophy will be unveiled a few days before the first day of the first Test at Headingley, Leeds on June 20. A cross section of the cricketing fraternity in India is unhappy with the change, but the argument is that the present generation has seen and taken a thrill at the fantastic displays with the bat and ball by Tendulkar and Anderson and the ECB decision was most appropriate in keeping with the times. Perhaps advised by a few legends of Indian cricket the BCCI, without interfering with the ECB call, has asked if it can name one of the individual awards and continue the legacy of Pataudi-Iftikhar Ali Khan and Mansur Ali Khan, both well known in English and Indian cricket.
The war of words between the Kerala government and Kitex Garments Ltd (KGL) seems to be never ending. The latest flare-up owes its origin to Andhra Pradesh chief minister Chandrababu Naidu’s decision to send his Textile Minister S Savitha to Kerala to woo Kitex to AP. Savitha, who visited KGL’s headquarters at Kizhakkambalam near Kochi, was impressed with the facilities and made a formal invitation to managing director Sabu Jacob to set up a unit at Amaravati, the capital of AP. The AP offer to set up a new unit comes at a time when Bangladesh, a major textile manufacturer, is facing a political crisis. KGL is the world’s largest maker of cotton and organic cotton ready-to-wear garments for infants and children between 0 – 24 months. The war of words between the ruling LDF government and KGL, began when Jacob decided to float a political party, Twenty-20 in 2015. The party was successful in bagging the Kizhakkambalam and nearby Panchayats from LDF. Twenty-20 transformed the panchayats into a successful model for any panchayat to emulate – 24-hour water, health facilities including insurance, better schools, roads, including grocery shops offering minimum prices etc. Jacob who presented a Rs 3,500 cr investment proposal at the Ascend Global investment meet organised by Kerala government withdrew the proposal following harassment by the state government through various raids. It was at this juncture that the then Telangana government of K Chandrasekhar Rao rolled out the red carpet. Sabu set up two yarn-to-garments facilities in Hyderabad and Warangal which is expected to generate employment to 50,000 people when fully operational. In fact, the Telangana government showcased the Kitex project as a major achievement at the World Economic Forum, Davos. KGL, part of the diversified Anna Kitex group, is the largest employment generator in Kerala with 11,000 people on its rolls.
The question of whether Aamir Khan’s overexposure could hinder the success of Sitare Zameen Par is a compelling one. Aamir Khan is not only a celebrated filmmaker but also a masterful marketer. His ability to craft and dictate marketing strategies has played a significant role in the success of many films he has produced and starred in, including Lagaan, Rang De Basanti, Taare Zameen Par, Ghajini and more. He has consistently demonstrated an understanding of what resonates with audiences, employing innovative marketing techniques that have included unique promotional stunts and celebrity engagements. However, with Sitare Zameen Par, Aamir’s omnipresence in the media raises concerns. He is currently everywhere — on podcasts, TV interviews, and social media—actively promoting the film by inviting celebrities and influencers to his home for discussions. While this level of visibility can create buzz, it risks becoming counterproductive. The saturation of Aamir Khan in promotional activities may lead audiences to feel overwhelmed, diluting the film’s impact and excitement. Effective marketing should strike a balance between visibility and intrigue. While traditional methods such as social media campaigns, public relations efforts, and billboard advertisements are essential, they should be complemented by innovative strategies that captivate the audience’s imagination. The current promotional approach for Sitare Zameen Par seems to rely heavily on routine visibility without offering a compelling narrative or unique engagement. Aamir Khan has previously employed similar strategies with his son Junaid’s film Loveyapa where he invited notable personalities like Raj Thackeray, Sachin Tendulkar and Salman Khan for special pre-release screenings. However, despite the visibility, the film did not perform well, highlighting that increased exposure does not guarantee success.
Club versus country is an old debate in football in which the club game can at most times seem bigger than inter-country matches except perhaps in the World Cups. There are any number of soccer players who have given up playing the international game because they must satisfy, with their performances, their immediate employers, which are clubs. The Clubs may understand what loyalty to the country means, but they can be mean enough to believe that players owe them loyalty first as they pay their yearly wages and may have been responsible for spotting them and nurturing them. The fine West Indian striker – yes, there are new terms from soccer for batsmen these days — Nicholas Pooran has become an extreme example of loyalty to the club first in his retirement from international cricket at the age of 29. And the very next day he was named captain of the MLC league team MI New York. He has bowed to money in quitting wearing the colours of the West Indies in international cricket to play multiple leagues across the world in which he can make a good living without having to meet availability conditions that countries demand, especially during the peak season from November to March when their teams play a lot of international cricket. Pooran had just struck a six-hitting record in 2024, the year in which he made170 hits beyond the boundary and he had continued that rich form of six-hitting in IPL Season18 too. The fact is money calls and so does an easier life with less fierce expectations to fill when you turn up for a T20 league or Cup game as opposed to turning up in international cricket. Truth to tell, money is thicker than patriotism.
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.
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!
TRENDS & VIEWS
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.