Innholdsfortegnelse for 26-Jan-20 i Business Today

A rising tide lifts all boats, and the recent buoyancy in the stock market boosted the post-listing performance of 2019 initial public offerings (IPOs). The equity market, which was otherwise drooping since June, rose by around 14 per cent, year-to-date. This led to a stellar show by IPOs which hit the markets in 2019. The markets are scaling all-time highs – the Sensex delivered over 3 per cent returns in September and October and close to 2 per cent in November. In December, it rose around 1 per cent. According to data compiled by Prime Database, of the 16 main-board IPOs of 2019, 15 have been listed so far. Of these, about 81 per cent are trading over 20 per cent of their respective issue prices (based on market price…

Sixty-seven-year-old P. Muthusamy is worried. The small-scale weaver from Tirupur, India’s textile export hub located 450 km southwest of Chennai in Tamil Nadu, buys yarn from spinning mills and turns it into cotton fabric. He has 10 power looms, which until a year ago used to run for 12 hours a day, six days a week. Muthusamy had employed six people in his small factory, located next to his house. “We used to produce around 12,000 metres of cotton fabric a month and make around ₹15,000 in profits. There weren’t any large savings but I was able to meet the basic needs of my family,” says Muthusamy. However, things changed for the worse last year. Cotton yarn exports plunged and domestic consumption of textile, too, took a hit. “I had…

For 21 years till 2011, Vikas Gosain worked with the Indian army. He was a Gorkha Regiment infantry officer. He has worked with civilian organisations since, and currently manages security operations for Bharti Realty, a real estate developer. On a cold December morning, he takes this writer around Worldmark 2, a commercial and retail development near Delhi’s international airport. This is considered to be a ‘sensitive’ area, when it comes to security. In one room, hidden from the hustle and bustle of offices and restaurants, is a series of 24 screens. This is Worldmark 2’s security operations centre. Feed from 314 cameras in the building are beamed to this centre live. Every person and car entering its perimeter is scanned and the images are processed here in real time. “We…

In the world of children’s books, 16 years is a long time, which is how old Pratham Books turned on January 1, 2020. Co-founded and funded by Rohini Nilekani, Pratham Books is a non-profit publisher focused on introducing children to the joy of reading. Nilekani has written 11 books for Pratham Books so far, out of which five are bundled into a series. She hopes to write the sixth one in the series soon. Nilekani retired as the Chairperson of Pratham Books in 2014. She is happy that the non-profit publishing house has more than taken off and has realised its potential. Also, thanks to its digital platform called ‘Storyweaver’, her books have been translated into dozens of languages globally. With a clear not-for-profit goal, the books have been put…

That the 61-year-old Ramesh Iyer, Vice Chairman of Mahindra Finance, records songs during his 20-km long commute between offices is a testimonial to his passion for music. Iyer, who has recorded over a thousand songs on the popular Smule app, uses the hour-long journey between the Worli headquarters and the Goregaon office to recreate old classics. While the app allows him to record his renditions of popular songs of Mukesh Kumar, Manna Dey, Jagjit Singh, Talat Aziz and Mohammed Rafi and connect with thousands of listeners on social media, his forte is devotional music. Iyer was introduced to singing as a 7-year-old but he took it up seriously only in the last 15 years. His mother was a trained singer and his school, too, offered him a conducive environment to…

No FTA with major export markets (47 per cent goes to Europe and the US). Competitors, including Sri Lanka, Vietnam, Bangladesh and Ethiopia, have FTAs with these geographies Increase in duty-free garment imports from countries like Bangladesh with which India has FTAs. Import of apparel increased 9 per cent in April-August 2019 from the previous year Import duty on Indian imports meant Indian exporters could not make full use of opportunity thrown up by US-China trade war. Many competitors have a duty-free advantage The trade war has also meant reduction in yarn and fabric exports to China Domestic consumption has fallen. Spinners expect revenues to fall by more than 5 per cent and operating profitability to contract by around 3 per cent for FY2020 (Icra)…

There is no dearth of market experts explaining the tricks of the trade to novice investors. But Vijay Kedia, Director, Kedia Securities, has a unique way of educating amateurs on investments – through songs. Kedia might have earned a reputation on Dalal Street for identifying multibaggers, but his avatar as a singer has become even more popular. In a span of just 18 months, Kedia has sung over seven songs that highlight the essence of the stock market in simple language. From explaining the importance of debt-free companies – “EPS hai jhoothi, cash flow hai saccha; loan jitna kam ho utna hi accha; byaaz he baja na de band company ka” – to highlighting the perils of playing with futures and options – thoda profit jo aana shuru ho gaya,…

SHEKHAR BAJAJ, CMD, Bajaj Electricals Q. What was the problem that you were grappling with? A. Bajaj Electricals' consumer-facing business – such as small appliances, fans and domestic lighting products – faces challenges from local products because of the low-entry barrier in these product categories. Therefore, it becomes imperative to keep a check on competition and devise a strategy to create a long-term, sustainable and competitive organisation. Q. Who did you approach and why? A. We approached Eliyahu Moshe Goldratt, an Israeli business management guru, who is known for his Optimized Production Technique, the Theory of Constraints and Critical Chain Project Management. Q. What was the advice? A. Goldratt said that ubiquitous availability is the key to lasting success of a consumer brand. If the consumer company has a strong…

Budget 2020 will be presented in the shadow of one of the longest spells of slowdown — six quarters so far — in more than two decades. That poses a host of challenges for Finance Minister Nirmala Sitharaman as slowing tax collections have left practically no leeway for fiscal stimulus out of the government’s balance sheet. On top of that, exports have stagnated, private investment has ground to a halt and consumption is still reeling under the effect of demonetisation, GST, lack of jobs and public sentiment. Just public expenditure seems to be driving the economy for now. Business Today hosted a Pre-Budget Panel Discussion to debate how to steady a wobbly economy. The panelists were Gopal Krishna Agarwal, National Spokesperson of BJP on Economic Affairs; Sumant Sinha, Chairman and…

• Punjab National Bank, India’s second-largest public sector bank, has gross NPAs of 22.71 per cent in small Mudra loans in September-end 2019• State Bank of India’s agriculture NPAs have risen from 5 per cent three years ago to 14 per cent in the first half of 2019/20• The telecom sector, which has seen two bankruptcies in as many years, is staring at another big liquidation after the Supreme Court ruling on payment of ₹92,641 crore AGR dues in January• The RBI has warned about the possibility of rising defaults in unsecured retail loans as growth slows For the banking sector, just looking to come out of the NPA crisis – gross NPAs fell after seven years, from 11.2 per cent in 2017/18 to 9.1 per cent in 2018/19 –…

Annual Conference New India: Aspiring $5 Trillion Economy As India sets its eyes firmly on becoming a$5 trillion economy, the need for the Government and Indian corporate sector to work closely to achieve this dream has become more pertinent. The Government has taken some bold policy initiatives to catapult the country’s economy into a high-growth orbit. The challenges and risks that will come along the way can be mitigated by the collective wisdom of industry and the Government. Apex industry body ASSOCHAM has taken the initiative by choosing the theme 'India Moving Forward: Journey Towards A $5 Trillion Economy' to commemorate its 100 years and the Annual Conference held on 20th December 2019 that was inaugurated by Prime Minister Narendra Modi. A galaxy of Union Ministers led by Minister of…

11% SHARE IN EXPORTS 15% SHARE IN EXPORT EARNINGS 13% TEXTILE TO MANUFACTURING GDP 2.3% TEXTILE TO GDP RATIO 7% SHARE IN INDUSTRIAL OUTPUT (VALUE TERMS) 45mn+ NUMBER OF PEOPLE EMPLOYED IN THE TEXTILE SECTOR, THE SECOND-LARGEST EMPLOYER (18%) AFTER AGRICULTURE 30-35% REDUCTION IN JOBS SHOULD A SPINNING MILL CUT PRODUCTION BY 20 PER CENT 90% SHARE OF COTTON-BASED GARMENTS EXPORTED FROM TIRUPUR. THE TOWN ACCOUNTS FOR 45 PER CENT OF INDIA’S TOTAL KNITWEAR EXPORTS. IT HAS INDIA’S BIGGEST KNITTING CLUSTER…

When a former colleague and friend asked Pravin Tatavarti, Managing Director at talent management firm Allegis India, to employ his autistic son, he agreed. There wasn’t any reason to say no. Venkat had a masters in commerce and was applying for a data entry role. What he didn’t know was what this would entail. “I didn’t know anyone with disability and had no experience of dealing with them.” Venkat’s performance was decent but his social skills were poor. He didn’t greet anyone, would get jittery, and once even pulled a colleague’s hair. It was when he entered the ladies room that the human resources manager wanted him to leave. For Tatavarti, it was a litmus test considering that as the leader of a service organisation, his job was to help…

From his decade-long stint at the country’s largest carrier IndiGo to becoming a board member at Oyo Hotels & Homes, Aditya Ghosh is known to be an accomplished corporate executive. While his professional career is fairly well-known, perhaps, only his over 39,000 followers on Instagram are aware of his penchant for fitness. When it comes to sharing his passion for fitness, Ghosh does not shy away. He frequently posts pictures and videos of his intense workouts. He also likes taking his fitness mantras up a notch with life lessons. “Whether in life or at work or in the gym, your competition is who you were yesterday! Just focus. Prepare. Collect your thoughts. Even if it takes time. Life is not a sprint, it’s a marathon… You don’t have to jump…