Business Today 3-Oct-21

A leading business magazine read by the business leaders for staying ahead and managing challenges that comes right away in the ever changing world of business.

When the $25-billion streaming giant Netflix came to India in early 2016, it was seen as a major event in the country’s entertainment ecosystem. Armed with a massive armoury of global content and a brand that was perceived as a premium offering, Netflix went about the task of capturing Indian audiences. Initially, the premium brand identity and pricing (its top-end plan is priced at ₹799 per month) meant that consumers at the upper end of the market, familiar with global content, were the early adopters. Then came Reliance Jio which, with its aggressive pricing of data, completely disrupted the telecom space. Data prices came crashing down, providing a major boost to streaming services like Netflix. Cut to 2021. As the Reed Hastings-founded streaming service works through its sixth year in…

2 min

The Point

ENCASHING ASSETS

RAIL 400 stations 1.5 ₹LAKH CR0RE ROADS 26,700 km of highways 1.6 ₹LAKH CR0RE POWER TRANSMISSION 42,300 circuit km of transmission lines 0.67 ₹LAKH CR0RE POWER GENERATION 5,000 MW of hydro, solar and wind assets 0.32 ₹LAKH CR0RE TELECOM Towers of BSNL, MTNL 0.39 ₹LAKH CR0RE STADIUM 2 sports stadia 0.11 ₹LAKH CR0RE MINING 160 coal mining projects 0.32 ₹LAKH CR0RE AIRPORT AND PORTS 21 AAI projects, 31 port projects 0.34 ₹LAKH CR0RE NATIONAL GAS PIPELINES 8,000 km of gas pipelines 0.24 LAKH CR0RE OIL PIPELINES 4,000 km pipelines of IOC, HPCL 0.22 LAKH CR0RE Some numbers have been rounded off Source: PIB YEAR-WISE INDICATIVE VALUE OF THE MONETISATION PIPELINE (₹ '000 CRORE) Tepid Disinvestment Record Gives Little Hope DISINVESTMENTS (₹ '000 CRORE) DISINVESTMENTS AS % OF BUDGET ESTIMATE Data for 2021-22…

1 min

The Point

Fixed Capital Formation Leads Recovery in Q1

■ Private final consumption expenditure (PFCE), the single largest component of GDP, grew 19.3 per cent, after a 26.2 per cent fall during April-June 2020. ■ Gross capital formation (GCF), an indicator of investment demand, grew 56.7 per cent as against a 47.74 per cent contraction in the year-ago quarter. ■ Imports grew at a faster clip (60.2 per cent) than exports (39.1 per cent). Trade deficit was 1.9 per cent of GDP as against a surplus of 1.3 per cent in Q1 of FY21. PFCE: Private final consumption expenditure; GFCE: Government final consumption expenditure; GFCF: Gross capital formation…

1 min

The Point

GVA GROWS 18.8% IN JUNE 2021 QUARTER

QUARTERLY ESTIMATES OF GVA AT BASIC PRICES Q1 (April-June) at 2011-12 Prices Financial, Real Estate & Professional Services ₹7,89,929 crore -5% 3.7% Manufacturing ₹5,43,821 crore -36% 49.6% Agriculture, Forestry & Fishing ₹4,86,292 crore 3.5% 4.5% Trade, Hotels, Transport, Communication & Services ₹4,63,525 crore -48.1% 34.3% Public Administration, Defence & Other Services ₹3,79,205 crore -10.2% 5.8% Construction ₹2,21,256 crore -49.5% 68.3% Electricity, Gas, Water Supply & Other Utility Services ₹82,042 crore -9.9% 14.3% Mining & Quarrying ₹81,444 crore -17.2% 18.6% % Change over previous year in Q1, 2020-21 Q1, 2021-22…

1 min

IN THIS ISSUE

NJ GROUP FORAYS INTO RULE-BASED INVESTING

NJ Group is the largest mutual funds distributor in India. You have shown that it is possible to be on the investor’s side and yet enjoy stellar success… Formerly called NJ Advisory, NJ Asset Management is a SEBI registered Portfolio Manager which has been in the business of rule-based active investments for the last 11 years. As one of the biggest portfolio managers in the country, it currently manages over Rs 2,800 cr for more than 3,400 investors. Being in business over the last 11 years, we have gathered significant knowledge and deep customer insights, which have played a key role in our success in the industry today. Having had a great run as a distributor, we believe we are in a great position to now contribute as a participant…

4 min

Column

The Shape of Things to Come

Can you guess the names of the six most valuable US companies in 2004? They were GE, Exxon, Microsoft, Pfizer, Citi and Walmart. That’s right, not a single FAANG stock. Today, the top names are Apple, Microsoft, Google, Amazon, Facebook and Tesla. The old order has made way for the new. Prepare yourselves, for such a change is coming to India, sooner than you think. The journey has begun. Less than 1 per cent of India’s market capitalisation is accounted for by digital- or internet-based enterprises. In the US, this number is 40 per cent. But, we already have 60 unicorns here and that number will probably grow to 200 by 2025. And that is a conservative estimate. Will we have our own FAANGs then? Sure, but maybe by another name.…

5 min