Innholdsfortegnelse for 19 November 2017 i Business Today

I have always believed what the iconic American President John F. Kennedy once said: “Those who look only to the past or present are certain to miss the future.” Magazines must be harbingers of change. For the past two and a half decades, Business Today has chronicled the ebb and flow of the Indian economy and the corporate sector. It has established itself as the gold standard in business journalism bagging major awards in the country for the rigour of its reportage, the depth of its analyses and the relevance of its coverage. It had, however, become imperative that Business Today keep pace with the unparalleled change we are seeing in the technology and business arena. We are in the midst of the fourth industrial revolution. Artificial Intelligence is upturning…

31-1 THE HR CHALLENGE WHAT:CII National HR Conclave 2017 WHEN: October 31-November 1, Mumbai WHAT TO LOOK FOR: HR professionals are being called upon to enable profound transformation and deliver significant and sustained value to businesses. The conclave would debate the new DNA of HR leadership and what it takes to deliver organisational success. The focus would be on managing and engaging multi-generational workforce. 3 THE BOTTOM LINE WHAT:Round Table Conference on “Profit Leadership” WHEN: November 3, New Delhi WHAT TO LOOK FOR: In these changing and challenging times, the overall sustainability of the organisations is driven by board room strategies. The goal is to keep operating effi- ciently, defying limits and achieving benchmarks. To analyse the levers that impact operational efficiency, cost, revenue, and ultimately profits, ASSOCHAM is organising…

A Kerala based sewing machine dealer was in a fix when post-GST prices of leading brands fell. But his brand, contract- manufactured in Ludhiana, became costlier. Big brands reduced prices because of a cut in the effective rate of taxation due to the now available input credits. The Ludhiana- based supplier, however, claims that instead of two per cent state VAT, he is now paying 12 per cent GST. He is either failing to avail input credit or not passing it on to his customer, the machine dealer. Although there is an anti-profiteering authority proposed under GST, can it make quick interventions for such situations? It may well be possible that the price increase in thousands of products manufactured and marketed by small and medium enterprises, is a short-term phenomenon. But it…

THE 11TH Ministerial Conference of the World Trade Organisation (WTO) starts in Buenos Aires in mid-December. Developed nations want the agenda to include investment facilitation and e-commerce. The developing world wants WTO to bring unfulfilled agenda items aimed at a more equitable global trade to a successful conclusion. The aim to establish a panel on e-commerce to conduct preparations for and carry out negotiations on trade-related aspects of electronic commerce by a group of WTO members in mid-October should be seen in this context. India and 43 African countries have opposed the move.…

AS CUBA OPENS up to the world, especially US, India also sees business opportunities. India’s trade with Cuba is a mere $38.89 million, and covers primarily export of pharmaceutical products, organic chemicals, and rubber articles. This is much lower than the $300 million trade that existed when the erstwhile Soviet Union provided freight and re-insurance options between India and Cuba. The ban on clubbing trade to Cuba and other parts of North America resulted in a drastic drop in exports to Cuba. Commerce Minister Suresh Prabhu, however, has set the ball rolling for trade in automobiles, low-cost pharmaceuticals, large engineering projects, textiles, and ITeS. Besides acting as the partner country in the Havana Trade Fair in early November, New Delhi may also rope in Havana for discussions on the Indo-Caricom…

SAFETY PILLION BAN The Karnataka government has banned pillion riders on two-wheelers with less than 100cc engine capacity to curb accidents. The state will also not register vehicles below 100cc engine with a pillion seat. The move will hit several two-wheeler makers. STOCKS BULL CHARGE Equity benchmark indices ended at fresh record closing highs on October 26. The 30-share BSE Sensex rose 104.63 points to 33,147.13 and the 50-share NSE Nifty was up 48.40 points at 10,343.80, a day after the government announced a plan to put capital into its struggling banks in a bid to encourage them to lend to push growth. ₹ 1.72 LAKH CRORE OVERRUN A total of 331 infrastructure projects, each worth ₹150 crore and more, have seen a cost overrun of ₹1.72 lakh crore, according…

Case Order Innoventive Inds Vs ICICI Bank Prior notice should be given to the corporate debtor in case of application by financial creditors (FCs) FCs need not take consent from joint lenders' forums Nikhil Mehta & Sons Vs AMR Infra Committed return plan in a real estate transaction should be considered as financial debt and the applicant considered an FC Schweitzer Systemtek India Vs Phoenix ARC Personal properties of promoters pledged with FCs will not be covered in the moratorium provided to the debtor Lokhandwala Kataria Const vs Nisus Finance & Investment Manager Settlement can be considered and case withdrawn even after insolvency proceedings have been initiated Alok Ind vs Industrial & Commercial Bank of China Pendency of winding up proceedings before HC is no bar for initiation of insolvency…

For the longest time, we simply have not had a method for frequent collection of jobs data. The main source of data is the National Sample Survey (NSS), which is collected every five years. The NSS used to have an annual round, which represented the country as a whole but could not break the data down to states as the sample size was small (40,000). Regarding jobs, there is more interest in state-wise data than the national statistics. That is why the data was not used very much, and my mid- 2000 annual survey was stopped. Since then, we only have five-year jobs data. Along with that, the Labour Bureau used to collect data essentially on wages. But after the global financial crisis in 2009, the bureau was told to…

MI MIX 2, the successor to Xiaomi’s concept phone launched last year, has a 5.9-inch bezel-less display with 2,160x1,080p resolution that offer great colours on screen. Although a few apps and videos look stretched due to the phone’s 18:9 aspect ratio, most of them work fine. With the bezel-less display offering a bigger screen estate, the on-screen capacitive keys can be turned off and a quick-ball for screen controls can be activated from the settings. The scratch-proof ceramic rear looks stunning, but attracts fingerprints easily. Unlike most smartphones in the price range that pack in a dual camera module, Mi Mix 2 features a single 12-MP camera with Sony IMX386 that captures good images. It runs on MIUI8 based on Android 7.1.1, is powered by Qualcomm Snapdragon 835 processor paired…

Research into computers that negotiate for us has been on for some time but only now are truly autonomous negotiators being deployed in real-world situations. In a paper by researchers Kaisers, Jonker, Gerding and Gratch, many ethical questions regarding the use of such agents have been explored. One benefit is reduction of cost, time, effort and stress. The authors say completely autonomous negotiating technologies are still in the future. For now, user trust is one challenge. Another challenge is how negotiators like or manipulate when they feel they need to or when they negotiate through a third party.…

Fashion A Cut Above The 137-year-old legendary French tailoring house Cifonelli, that invented the signature cigarette shoulder and has dressed big names like Cary Grant, Charlton Heston and former French President François Mitterrand, is making inroads in India. It is opening a lounge in Mumbai in 2018 in partnership with luxury retailer Vault Luxury. “The face of retailing has changed and it’s not about a retail store anymore; it is about a buying experience. The lounge will give a sense of privacy and involvement to the customers. When a customer walks in, we want them to know that they are not just buying from Cifonelli but becoming a part of the ever growing brand,” says the brand’s Creative Director John Vizzone. Cifonelli prides itself on a personal, handson approach and…

THE FOUR: The Hidden DNA of Amazon, Apple, Facebook and Google By Scott Galloway Penguin Random House; 320 pages PRICE: ₹699 What makes the four such an indispensable part of our lives? Why does the stock market forgive them for sins that would destroy other firms? The author shows how they manipulate the fundamental emotional needs that have driven us since our ancestors lived in caves. PRINCIPLES By Ray Dalio Simon & Schuster; 592 pages PRICE: ₹999 The author lays out the most effective ways for individuals and organisations to make decisions, approach challenges and build strong teams. He shares unconventional principles and practical lessons for both life and business. THIN DIVIDING LINE: India, Mauritius and Global Illicit Financial Flows By Paranjoy Guha Thakurta with Shinzani Jain Penguin Random House;…

NETFLIX RAISES $1.6 BILLION IN JUNK BONDS Netflix Inc, the world’s largest online TV service, has sold bonds worth $1.6 billion, its largest-ever dollar-denominated sale, to produce a new hit series. It, like other over-the-top content players such as Amazon Prime, is burning cash to invest in programming and subscriber growth. XI JOINS MAO, DENG'S HALL OF FAME China’s Communist Party has elevated President Xi Jinping to the same status as Mao Zedong and Deng Xiaoping, writing his name into its Constitution and setting him up for an extended stay in power. The vote to enshrine “Xi Jinping Thought on Socialism with Chinese Characteristics in a New Era” in the Constitution came on the final day of the week-long 19th Party Congress. ABE WINS BIG IN POLLS Japan's Prime Minister,…

Anil Ambani-owned Reliance Communications (RCom) has decided to shut down its 2G business. The 40-million odd customers will be asked to migrate to the 3G/4G network that the telco will continue to operate. In the absence of potential buyers for its businesses – wireless telecom, DTH, optic fibre – RCom has scaled down operations in the recent past. By doing so, it is trying to save on costs, and make it attractive to buyers. The company claims by shutting down the 2G business, it will cut back on losses of about Rs 80 per subscriber per month, aggregating to some ₹3,840 crore annually. RCom brags about its pan- India spectrum in 800/850 MHz and 1,800 MHz bands. But half of this spectrum expires in 2021. As the three large telcos…

The government is providing a shot in the arm to the wind energy industry, which is battling dipping prices and low demand. The Solar Energy Corporation of India (SECI), a PSU that promotes renewable energy, will be coming up with three more rounds of bids for wind energy farms, each offering 1,500 MW. Domestic equipment manufacturing firms, smarting from layoffs, are likely to benefit from the additional 4,500 MW. Unlike solar, in wind, much of the manufacturing is done within the country. Therefore, wind power companies will be in a position to match the falling prices. The problem began when a February bid invite by SECI brought about a price war. By October, the tariff fell to ₹2.6 4 per unit and manufacturers feared extinction. This move by t he…

THE GODREJ GROUP = 10 × 10 AT THE END of last decade, the Godrej Group announced a plan to grow 10 times in 10 years (10X10). In the past seven years, the group has made a significant jump in valuation of listed companies. With the IPO and listing of Godrej Agrovet on October 16, the overall market capitalisation of four group companies – including Godrej Consumer Products (GCPL), Godrej Industries and Godrej Properties – has exceeded the ₹1 lakh crore, against ₹18,000 crore for three listed companies in 2010. Godrej Agrovet debuted at a 35 per cent premium to IPO price and is valued at over ₹10,000 crore. On October 25, GCPL was valued at ₹62,800 crore. Between November and July, the share price of holding company Godrej Industries…

Manipal Hospital’s ‘Tumour Board’ has a panel of qualified oncologists from radiation, medical and surgical streams. Since January, 2017, ‘Watson’—IBM’s artificial intelligence and deep learning framework—has had the honour to occupy one of the seats on the board. Even as specialists evaluate a case, Watson presents its own diagnosis, along with recommended line of treatment. It evaluates the 130-140 parameters of the patient fed into its system against tens of thousands of cases it's already been trained on. Doctors can vary their treatment, or can query Watson live. The doctor is still the boss, though. “Watson is part of decision making process across our seven hospitals for cancer patients,” says Dr Ajay Bakshi, MD & CEO, Manipal Hospitals. Manipal evaluated the impact on two fronts: 600-odd research cases of past…

Tall, wiry with a runner’s physique, a clean-shaven pate and a ready smile, Satya Nadella leans forward and listens intently to the question before thinking for a bit and framing the answer. We have just asked him a leadership question. “When I evaluate leaders, I talk about three attributes. And it is the same set of attributes I have got to hold myself accountable for,” he says. “One, every leader has to bring clarity in what is an uncertain and ambiguous context. You cannot wait for all the information to come in before you take a decision. The second piece is – are you able to galvanise and create energy? And then of course, finally, you have got to drive success. You cannot say, hey, I got everything right except…

The business of digital content just a couple of years ago was all about creating snacky, short-format videos for YouTube. Companies such as Culture Machine, TVF and AIB rode this wave and did rather well. Known as multi-channel networks (MCNs), their YouTube channels such as Blush and Being Indian became popular destinations for advertisingfunded content. They also managed to attract investors. The emergence of OTT platforms (Amazon Prime Video, Netflix, Hotstar, etc) have completely changed the dynamics of the business, with consumers increasingly looking for long-form entertainment on digital. This has forced the MCNs to re-look their business model. While TVF has ventured into platform play by launching its own OTT platform, TVF Play, Culture Machine calls itself a newage media company, which continues to do ad-funded content on its…

BEFORE LAKSHMI BALACHANDRA entered academia, she spent a few years working for two venture capital firms, where she routinely witnessed a phenomenon that mystified her. The VCs would receive a business plan from an entrepreneur, read it, and get excited. They’d do some research on the industry, and their enthusiasm would grow. So they’d invite the company founder in for a formal pitch meeting – and by the end of it they’d have absolutely no interest in making an investment. Why did a proposal that looked so promising on paper become a non-starter when the person behind the plan actually pitched it? “That’s what led me to pursue a PhD,” says Balachandra, now an assistant professor at Babson College. “I wanted to break down and study the interaction between the…

I magine emojis that you can control with your face – the adorable panda or dog emoji that looks and talks like you. One of the highlights of the much-awaited iPhone X is the Animoji feature. Using the TrueDepth camera that analyses more than 50 facial muscle movements, users will be able to lend their face and expressions to a dozen emojis, edit and send them out in real time. Powering this fancy new feature on the Apple iPhone X is the A11 Bionic chip with neural engine that can recognise people, places and objects. A neural engine, explains Apple, is a hardware that’s “purpose-built for machine learning, a type of artificial intelligence that enables computers to learn from observation. It’s capable of incredibly fast computations needed by neural networks…

James Clear, writer, photographer and weightlifter has made it his business to study the forces that shape our successes and our failures. He intends to help us become architects of our own habits rather than letting them just happen to us. And procrastination, Clear says, is timeless. One theory about why procrastination happens, he writes, is that doing something else is rewarding more immediately. You may have a presentation to put together for a talk next week and you really want to work on it and make it brilliant - but diving into the last few chapters of that thriller you were reading is so much more rewarding right now. And when it comes to distant future goals like writing a book or losing weight, there’s a long wait for…

Everyone is talking about benefits of shifting to millet –based diet to help control diabetes and deal with obesity. So, does it really help? If it helps, what is the right intake. And, if it is not helping, why? Here is an expert take: Dr Lalithapriya, nutrition and wellness expert (she has a doctorate in nutrional biochemisty) who has been a consultant to various hospitals, including Motherhood Hospitals in Bangalore, points out that she is seeing many people today ending up with higher levels of sugar and with increased load on their kidneys and liver because of excessive intake of millets. This, she says, is a direct result of overconsumption of millet. “There is the flipside to it too when taken in excess, it can lead to higher glycemic index…

Lucknow, October 7, 2017 – On a warm afternoon, the second leg of the LLOYD Business Today Pro- Am of Champions teed off at the Palms Golf Course, Lucknow. The 18 hole championship golf course is spread over an area of 200 acres and is designed by the famous UK based golf course designer Dr Martin Hawtree. The course has a touch of famous links type design with deep bunkers and large undulating greens. Played on the Stableford format with Double Peoria handicap system, the afternoon witnessed keen golfing action with players vying for both individual as well as team prizes. The day’s action culminated with the prize distribution ceremony followed by dinner. The winning team comprising of Anupam Mittal (ARINEM Consultancy Services), Naresh Ladhani, Lalit Srivastav (S S Constructions)…

STAY CONNECTED WITH US ON www.facebook.com/BusinessToday@BT_India iPhones to Come with International Warranty, but Apple Yet to Announce The international warranty will affect India sales as there is a huge gap in India pricing. businesstoday.in/globalwarranty-apple US to Monitor India’s Dollar Accumulation Over the first half of 2017, there has been a notable increase in India’s net forex purchases worth around $42 billion. businesstoday.in/monitoring-india.forex How MF Classification Will Impact Your Portfolio Fund houses get two months time to review the classification and submit the proposal with SEBI for approval. businesstoday.in/mutualfund-classification Global Cloud Providers, MNCs Driving the Data Centre Boom Service providers generate efficiencies of scale and pass on cost benefits to customers. businesstoday.in/cloudservice-datacentre Aadhaar Is Not Bipartisan, Mired in Authoritarianism The claim of bipartisan support is an exercise in factual misrepresentation, says…

WILL THE petrochemicals business of Reliance Industries (RIL) topple its refining business to become the largest earning segment for the company? Petrochem posted a 45.2 per cent jump in earnings before interest and tax (EBIT) to ₹4,960 crore in the second quarter, while the refining business posted an EBIT of ₹6,621 crore, 10 per cent more than in the year-ago period. RIL officials say this will happen soon, possibly in the fourth quarter, as they are commissioning the Refinery Off-Gas Cracker, which will help increase ethylene capacity to 3.6 million tonnes (MT) from the current 1.9MT. The EBIT margin of RIL has doubled over the last three years — 17.7 per cent in Q2 FY18 as against 8.9 per cent in Q2 FY15. It’s at the beginning phase of commissioning…

There is quite a bit of euphoria in the stock market around the initial public offerings (IPOs) of insurance companies these days. Four IPOs of leading companies – ICICI Prudential Life, ICICI Lombard, SBI Life and General Insurance Corporation of India – have already been concluded. Some more, such as public sector insurer New India Assurance and private sector companies HDFC Standard Life and Reliance Nippon Life, are expected in the near future. All the stocks of insurance companies that have been launched so far were oversubscribed. However, doubts have been raised about valuation of these stocks, and most analysts have cautioned that they may not give good returns in the short term. Let’s see how valuation is done in the insurance sector. The valuation exercise in the context of…

Q: Do entrepreneurs overestimate the importance of the business idea they’re pitching relative to the way they present themselves? A: I 100 per cent believe that they do. Although the business idea is obviously very important, I tend to filter out ideas and markets I’m not interested in before deciding whether to even take a pitch meeting. In the earliest stages, when you’re an angel or a pre-seed investor, there isn’t a lot of information about whether the business will gain traction. You have to take an educated guess about whether there’s a market, and you have to evaluate the other aspects of the pitch. A lot of it comes down to ‘Do you believe in this team?’ That’s first and foremost for me once I’ve decided something is a…

Whether music helps you work or distracts you from it, is a matter of debate. Not only does it perhaps depend on the individual but also the type of work being done. One school of thought however firmly believes that one’s brain can go through entrainment when certain kinds of music is used to coax specific states of mind using pulsing light, sound or electromagnetic field. The theory is that the brain waves align to the frequency used by the stimulant. Brain.fm is an application, available on the web and as an app on both iOS and Android, though the Android app is still a work in progress. What it presents you with is a set of mental states: Focus, Meditate, Sleep, Nap, Relax. Tap one and get into headphones.…