Innholdsfortegnelse for 21-Oct-2018 i Business Today

EVERY YEAR, A NUMBER of very respectable organisations – management consultancies, wealth managers, tax advisors, property consultants, and media firms – try to find out the number of super wealthy people worldwide and, of course, in individual countries. The reports broadly agree that the wealth of the super rich and the share of the country’s and as well as global wealth is generally going up. They also agree that in most countries the number of super rich are going up. In China and India, especially the number of billionaires and their total wealth are showing a double-digit growth rate every year. While the reports typically differ on the specifics, their overall conclusions about aggregate wealth of the super rich in India (and globally) are pretty much similar. Of course, every…

THE ₹22-LAKH CRORE Non Banking Finance Companies (NBFC) space grew robustly though the last few years were very challenging. The tide, however, appears to be turning now. With inflation, rupee and interest rates wobbling, there is concern about growing leverage due to reliance on debentures and Commercial Paper. Higher cost CP will replace these, now that interest cycle has reversed. There may be a liquidity crunch as many mutual funds would prefer not to increase CP exposure; they also fear possible redemption pressure because both equity, and debt instruments, prices are dropping. NBFCs face a concentration risk on the assets side too. Many have increased exposure to micro and small loans; in a climate where retail loans (especially consumer durable financing, credit cards and affordable housing) have grown in the…

INDIA’S FIFTH LARGEST bank was well on track for a complete transformation with new professional management when a government announcement changed its entire game plan. The government announced that the Bank of Baroda would now have to absorb two mid-sized players – Dena Bank and Vijaya Bank in a threeway merger. Of these, Dena Bank has very high NPAs and is already under the prompt corrective action (PCA) of the Reserve Bank of India. Integrating technology, branches, and people will prove a major challenge now. And the asset quality issue will also play havoc with the good work done by the BoB team in the last three years. At a time when competition from more agile Fintechs, Payment banks, and small finance banks is rising, the Bank of Baroda will…

THE GOVERNMENT sounds confident that it can crack NPAs with the Insolvency and the Bankruptcy Code (IBC). Finance Minister Arun Jaitley recently said recoveries were increasing and NPAs declining thanks to the IBC. Besides resolutions, the IBC, he says, has engendered fear among defaulting promoters that they might lose their companies if they don’t take steps towards solvency. Jaitley was confident that PSU banks are likely to recover ₹1.8 lakh crore bad loans in 2018-19 against ₹74,562 crore last year. It is yet early days to judge the IBC but numbers suggest the government may be right. Data from the Insolvency and Bankruptcy Board of India (IBBI) shows recovery of around 56 per cent for 12 cases in the June quarter. This is a sharp jump from the 26 per…

US FED HIKES INTEREST RATES The US central bank raised the benchmark interest rate by 25 basis points to 2.00-2.25 per cent, its third rate hike this year and eighth such move since it started normalising policy in December 2015. Fed has projected one more rise this year and three more in 2019. FOMC officials estimated GDP to grow 3.1 per cent in 2018, higher than the 2.8 per cent projected in June. SIRIUS TO BUY PANDORA FOR $3.5 BN Satellite radio company SiriusXM is taking over streaming service Pandora in a $3.5 billion all-stock deal. The company had earlier bought a large stake in Pandora. If the deal goes through, it will combine SiriusXM’s 36 million subscribers with Pandora’s more than 70 million monthly active users, making Sirius the…

JOHN D. ROCKEFELLER The world’s first billionaire John D. Rockefeller established the first family office in its modern form in 1882. Via Rockefeller Capital Management, it also provides wealth advisory services. The family’s estimated net worth is $11 billion, split among 174 members. BILL GATES Bill Gates, co-founder of Microsoft, has an estimated net worth of about $95.7 billion. The world’s second-richest person’s trusted man is Michael Larson who manages his wealth via Cascade Investment LLC, and oversees the Bill & Melinda Gates Foundation. SAM WALTON Descendants of WalMart founder Sam Walton, the Waltons have a combined wealth of $163.2 billion. They have a huge collection of art, real estate, and expensive cars. They do a lot of charity, but their Trust is known to have used tax loopholes to…

DESIGNING AN ELECTRIC CAR is an incredible opportunity as it means abolishing many of the conventions inherent in internal-combustion-engine cars. Removing the engine and working with a skateboard-type platform gives you the freedom to change the car like never before. The most natural way to start with an electric car is to make more use of the space given. In the case of I-Pace, we have effectively moved the cabin forward. The front-end is reduced, with very few mechanical entities taking up that space, and the occupants are afforded much more room in the cabin. While the I-Pace is an electric car first and foremost, we still want it to look like a Jaguar and you will see this reflected in the design cues. A luxury electric car will continue…

THERE IS PERHAPS no portmanteau that holds as much promise as ‘getaway’. It is simple, elegant, and communicates its core message precisely. But that’s not the only reason why I feel this word merits special attention. It has a certain symbolism, which implies a break away from the monotony of life, an escape from everyday realities. You can be anyone for the duration of a getaway, do things you wouldn’t usually do. Remember the Ranbir Kapoor and Deepika Padukonestarrer Tamasha? The limitlessness that the concept of a getaway holds appeals to the new generation of travellers across the world. As a result, it is becoming an integral part of today’s fast-paced life. And, since its boundaries are only limited by one’s imagination, there has been an increasing demand for luxury…

LUXURY BEGINS WHERE necessity ends — when you arrive at a point where mere functionality is not enough, and you begin to seek perfection. Most things aren’t perfect, even a lot of luxury goods and services aren’t. However, it’s when they pursue perfection and strive to push boundaries beyond what’s seemingly possible, that they begin to embody what luxury is all about. From Rolex and Land Rover to the Four Seasons and Macallan, luxury is about taking that extra step. And to me, this idea of perfection is in the finer details, best exemplified by the details one can see on the face of a luxury wristwatch. I grew up in a family surrounded by the business of watches, and a company that made dials, hands and indexes for some…

COMPANIES IN INTERNET OF THINGS (IOT) PAINT A pretty picture for potential consumers. With every household contraption in sight getting connected to the Internet, we humans need not do much, it seems. Your virtual assistants and gadgets will team up to open the smart blinds in the morning, turn on the radio to wake you up, set the coffee machine working, start heating your bath water and suggest what you should eat for breakfast. As millions of companies are involved in selling all the supplies your gadgets will order, you are more than eager to hasten this scenario so that they do not lose a single day of business. The connectedness goes on throughout the day. Alexa calls out your car and warms or cools it until you step in.…

HOUSE OF NUTTER: THE REBEL TAILOR OF SAVILE ROW By Lance Richardson Crown Archetype (US) and Chatto & Windus (UK) 400 pages PRICE: ₹2,375 The riveting tale of Tommy Nutter, the maverick Savile Row tailor who ushered in a style revolution and clothed the Beatles, and his photographer brother, David. BVLGARI: TREASURES OF ROME By Vincent Meylan ACC Art Books; 296 pages PRICE: ₹4,210 An intriguing account of the haute joaillerie from the house of Bvlgari, and a look at all the famous people and families who put their trust in the storied jewellery brand. AROUND THE WORLD IN EIGHTY WINES: EXPLORING WINE ONE COUNTRY AT A TIME By Mike Veseth Rowman & Littlefield Publishers; 224 pages PRICE: ₹1,871 Narrated by a wine economist, this journey of wine discovery takes…

STAY CONNECTED WITH US ON www.facebook.com/BusinessToday@BT_India PERSPECTIVES Can Tata Motors Topple Mahindra & Mahindra? Both Tata Motors and M&M are fighting their own battles. Though Mahindra is financially strong now, Tata Motors’ JLR may turn the tide businesstoday.in/tatamotors-mahindra Why Tariff War in Telecom Sector Won’t End Soon Jio’s free voice calls and super-cheap data tariffs have led to significant shift in the telecom sector. Now, even the larger operators are finding it difficult to hold their ground businesstoday.in/telecom-tariff.war NEWS New KYC Process Likely to Eliminate Ghost Directors From the System As only 12 lakh out of 33 lakh directors have completed the KYC process for free by the last date of September 15, the government is planning to deactivate 21 lakh director identification numbers businesstoday.in/kyc-directors Good Distribution Practices for Pharma…

SOON AFTER TATA STEEL announced its plan to acquire the one million tonne steel business of Kolkata based Usha Martin for up to ₹4,700 crore, the founder of the wire and specialty steel maker, Basant Jhawar and his son Prashant issued a statement seeking clarity on the end-use of sale proceeds. The father-son duo have about 26 per cent stake in the company, while Prashant’s cousin Rajiv Jhawar’s family holds another 26 per cent. Prashant and Rajiv are at loggerheads over the control and ownership of the business, in which Rajiv is the managing director. In April 2017, the lenders removed Prashant from the role of chairman for alleged mismanagement of the company. Now the question before the father and the son is what their share of income from the…

HOW MANY HAVE you got? No, not private jets, yatchs, jewellery or houses. We’re talking about passports — the new stamp of luxury. For the 21st century jetsetters, the world is a playground and not for them the restrictions of visas to move from one country to another. Many countries, too, are eager to attract such wealthy globe trotters and billionaires, and of course, their money. The main advantage of having certain passports is that not only do they indicate citizenship, but also offer easy access to various other countries. For instance, with an Indian passport, one can go to 78 countries without a visa. But with a passport from, say, the US, Canada or the UK, you can go to 180+ countries visa-free. If you have one from Malta…

CASA KIMBALL ₹1.65-3.20 lakh/night Cabrera, Dominican Republic Atlantic facing villa, includes a 9-hole, 18-par putting course ARTIST VILLA ₹2.6-3 lakh/night Marrakech, Morocco Luxury villa, includes a hammam VILLA MAYANA ₹1.1-2.29 lakh/night Achiote Private Reserve, Costa Rica Water sports, nature trails GREEK ISLAND RETREAT ₹1.35-2.7 lakh/night Cyclades, Greece Beach house on an island LA VALLEE BLANCHE ₹81,000-2 lakh/night Verbier, Swiss Alps, Switzerland Ski resort, other winter sports Prices mentioned are for the entire property. Source: WelcomeBeyond.com…

A SURGE IN CRUDE past $80 a barrel and rupee falling towards the 73 level have suddenly become a headache for policymakers. The stock market has taken note and the Sensex is down 7 per cent this month, the worst September since Lehman. Sino-US trade tensions, upcoming US sanctions on Iran, and a snub by OPEC and Russia to US calls on increasing oil production suggest the two problems are unlikely to vanish anytime soon. When domestic macros were strong, earnings were elusive. Now earnings start to look up, but macros have taken a beating. FPI flows are drying, while mutual funds are seeing a redemption pressure. Defaults at a group, as big as IL&FS, has raised fears of contagion. The bank cleanup process too is delaying things. As such,…

India's growing elite Number of individuals based on their wealth globally $1 Billion SALES BY TOP 10 INDIAN LUXURY COMPANIES IN 2017 21% GROWTH IN INDIA’S WEALTHY POPULATION IN THE OVER $ 5 MILLION CATEGORY BETWEEN 2016 AND 2017; IT ROSE TO 47,720 INDIVIDUALS $3 Trillion EXPECTED WEALTH OF INDIA’S HIGH NET WORTH INDIVIDUALS BY 2020 2,920 NUMBER OF ULTRA HIGH NET WORTH INDIVIDUALS (WITH WEALTH OF ATLEAST $50 MILLION) IN DECEMBER 2017 5% INDIA'S EXPECTED SHARE IN THE NUMBER OF ULTRA HIGH NET WORTH INDIVIDUALS BY 2025 About 51% of the total UHNWIs reside in the US Equities a preferred investment tool UHNWIs’ top investments in 2017 CHANGING MOBILITY WHAT: Smart Mobility WHEN: Oct 10, Bangalore WHAT TO LOOK FOR: The theme of CII Smart Mobility 2018 is “Transforming…

A ZERO CAN MAKE all the difference. It turns thousands to lakhs and lakhs to crores. But for the uber-rich it is ‘just another zero’. On a humid Saturday afternoon in Gurgaon, a private banker-turned-entrepreneur who runs a family office relates to the writers an incident about a family which sold off one of their businesses and grew their financial assets of ₹100 crore to ₹1,000 crore. When they approached him to explore exciting investment avenues, he advised, “Your track record has been quite good for the last five years, why change it now? Follow the simple philosophy that just one zero has been added.” Another wealth manager, a Bollywood buff, when quizzed about ultra high net worth individuals (HNIs) losing money in commercial paper (CP) of debt-ridden IL&FS, brushes…

COUNTRY NO. OF VISA-FREE ACCESS NATIONS US, U K, PORTUGAL 186 CANADA 185 MALTA 182 MONACO 174 BULGARIA 169 ST KITTS 151 ANTIGUA AND BARBUDA 149 GRENADA 141 VANUATU 129 INDIA* 78 List is not exhaustive. *For reference. Source: Henley Passport Index, a ranking of all passports according to the number of countries their holders can travel to visa-free or get visa on arrival…

NO STEERING WHEEL OR PEDALS: Autonomous driving will change the way the inside of the car looks with the driver’s seat becoming redundant. The car will literally become your house on wheels MORE SPACE THAN EVER: With the engine replaced by a battery pack beneath the floor, there will be significantly more space inside the cabin, enabling innovations with seats and upholstery HIGH-END CONNECTIVITY: The windscreen can double up as a large screen that can either play your favourite movie, beam real-time TV or double up as your office computer, enabling you to work on the go FAST AS A FIDDLE: 0-100 kmph in two seconds, top speeds of close to 400 kmph, range in excess of 500 kilometres…

THE COLLECTING OF INDIAN art and the tribe of Indian art collectors really started to take shape post Independence. They were a handful of galleries back then, most of which do not exist today… but the real collectors in the 40’s and 50’s were largely friends, acquaintances and relatives of the artists who loved the artists, and collected their work for the pure pleasure and aesthetics that appealed to their senses. They didn’t collect works of art because the artist was well known or for monetary value. Raja Ravi Varma, who is considered to be among the greatest Indian painters, started what I call the revolution in Indian consciousness with his European style and technique but with a beautiful union of Indian tradition. Others followed at the turn of the…

FROM THE HIGH GLASS walls of Ziya in Mumbai, the Queen’s Necklace looks striking, the ocean spectacular. More so, if you happen to be swirling wine with this interesting a name — Goats Do Roam, which is from South Africa. The food at this restaurant in The Oberoi, Mumbai, is no less striking. There is goat cheese-smoked cashew gujiya, which is savoury and not sweet; pav-chenna pinwheels, inspired by Mumbai’s pav bhaji; pomfret with sabudana khichdi; dahi bhalla ice cream, where the flavours of dahi bhalla are captured in ice cream; Chocomosa or chocolate samosa, with a filling of chhena and almonds. Indian food, in short, has been re-imagined. Chefs in gourmet circles call this a ‘deconstruction’. At Ziya, it is Michelin-starred chef Vineet Bhatia’s doing; he has been a…

WHISKY MAKER BILL LUMSDEN likes to eat local when travelling. His last two dinners, however, went a bit haywire. In Tokyo, he was treated to Chinese food; in Singapore, he ate at a steakhouse. India turns out to be better. The conversation around innovation in whisky making is paired with re-imagined Indian food at Amaranta in The Oberoi, Gurgaon. Between bites of Chicken tossed in pallipalayam spices, Indian Ocean lobster presented with avocado tartare and kasundi mustard, and Kashmir slow braised lamb spare ribs, the feted Director of Whisky Creation, Distilling and Whisky Stocks at single malt scotch whisky brand Glenmorangie, talks about his own experiments. Most of Lumsden’s work, and those that have been celebrated, are around wood and maturation. Glenmorangie Spios is the ninth annual release of the…

FANCY a Tesla Model 3? Well, if you cannot wait to get your hands on what is America’s most popular car right now, take a trip to the Mall of America and try doing what this 21-year-old did. A young man who understood the Tesla 3’s security system all too well and had a Tesla account, managed to make off with a car by using his smartphone in the absence of a key. According to The Drive, the man first called Tesla’s customer service and had the car added to his account. Incidentally, he had the car’s unique identification number. With the car added and accessible via his account, he used his phone to unlock it and drive away. He also disabled the GPS so that he could not be…

Fusion: How Integrating Brand and Culture Powers the World’s Greatest Companies By Denise Lee Yohn Publisher: Nicholas Brealey Publishing Pages: 240 Price: ₹2,172 (HB); ₹375 (PB) BUILDING A GREAT COMPANY from inside out is a mammoth task, but in her latest book Fusion…, author Denise Lee Yohn has apparently decoded how culture-building can lead to corporate success. Unlike many who have churned out countless books on leadership, brands and company culture, Yohn believes in a cohesive blueprint that aligns a business’s brand image with its internal values. It is easier said than done as what is perceived externally is not always in sync with what is done internally. But based on her experience working with storied brands for more than two decades and a half, the author makes a strong…