Innholdsfortegnelse for 6 August 2023 i Business Today

RUSSIA’S INVASION OF Ukraine sparked a new financial battle as western sanctions have compelled Moscow and its crude oil customers to look for alternatives to the dollar for payments. Consequently, some Indian refiners recently paid in the Chinese yuan for the commodity. Reports suggest that state-run Indian Oil Corporation and a few other private oil refiners are now partly paying in the Chinese currency for Russian oil due to the lack of viable non-dollar payment options. In the past year, Russian supplies have risen to account for 40-50 per cent of India’s crude oil imports, from just 2 per cent before the Ukraine war started. In fact, India’s trade deficit with Russia widened to $43.06 billion in FY23 as crude oil imports from the latter rose to $31.02 billion in…

What makes Automobile Engineering at UEM a coveted choice is its attractive program that emphasizes on handson experience and practical learning. Students have access to state-of-the-art laboratories and workshops where they can apply their theoretical knowledge to real-world situations. From engine testing to vehicle dynamics simulation, the facilities at UEM enable students to gain practical skills that will set them apart in the industry. UEM Jaipur is recognized for its excellence in technological education and provides students with a comprehensive understanding of AI and its various applications. The university offers specialized courses that cover a wide range of AI topics, including machine learning, natural language processing, computer vision, robotics, and intelligent systems The B.Tech program in AI at UEM Jaipur equips students with a strong foundation in computer science and…

THE BEST THING that Subhash Chandra, Chairman Emeritus of Zee Entertainment Enterprises Limited (ZEEL), and Punit Goenka, MD & CEO, could have hoped for was a stay by the Securities Appellate Tribunal (SAT) on a hugely damaging interim order from the Securities and Exchange Board of India (Sebi)—that has barred them from holding directorships in listed entities. The markets regulator has charged them with having abused their board positions at ZEEL to siphon off funds from the company and violating various Sebi norms. The tribunal, however, stated that it did not find any reason “to interfere in the impugned order at this stage” apart from pointing out that the contention made by the promoters—that there was no basis for Sebi passing the order—was erroneous. A statement from Zee put out on July…

Extend the pre-packaged insolvency facility from MSMEs to bigger companies as well Evaluate the viability of a fast-track insolvency process outside the judicial process Reserve a fixed share of resolution proceeds for operational creditors to minimise litigation and facilitate early resolution Allow resolution through group-level insolvency proceedings, which includes invoking IBC for subsidiary companies as well Strengthen the insolvency process for realty firms by allowing project-wise insolvency instead of for the whole company Allow the sale of assets of defaulting corporates in parts if there is no resolution plan for the company Create a code of conduct for members of the Committee of Creditors Enforce appropriate deterrents like imposing penalties against stakeholders who initiate frivolous litigation to delay the process Mandate operational creditors to file dues data with the information…

ANISH SHAH, the 53-year-old Managing Director and CEO of the Mahindra Group, is known for his razor-sharp focus and decision-making skills. Shah, who joined the group in 2014, is already making a big difference to Mahindra and Mahindra’s (M&M) auto business (that contributes the biggest chunk to the group’s top line). He has been instrumental in driving the overall strategic pathway for the Anand Mahindra-controlled conglomerate since being elevated to the post in April 2021. The IIM Ahmedabad alumnus—who had two stints with GE Capital for a total of 14 years across countries—started his professional career with Citibank, before working with Bain & Company. Shah, who has a PhD in Management from Carnegie Mellon University’s Tepper School of Business, also had a stint with Bank of America. Shah’s rich experience has helped…

The Summer '23 Carrera Prowl Eyewear Collection captures the essence of the season with its youthful, bold and athletic designs, inspired from the latest fashion trends and spirit of sports, the collection offers a wide range of sunglasses and optical frames that seamlessly blend style and performance. It serves as the perfect style statement for young entrepreneurs and future leaders who not only excel on the desk but also make an impression out of office. On the unveiling of the collection, Ashutosh Vaidya, Managing Director, Safilo India Pvt. Ltd. said "We are thrilled to team up with Prowl, one of India’s most promising lifestyle brands. Prowl, through Tiger Shroff, has quickly gained immense popularity among the youth by symbolizing dedication and a fit lifestyle, inspiring many to follow in his footsteps.…

MORE THAN 13 acquisitions worth $3 billion. Expansion into international markets. Over $1.5 billion in funds raised. The coveted decacorn badge. And the crown of being the world’s most-valued edtech firm. All this achieved in a little over a year in 2021. Those were the halcyon days for BYJU’S. Cut to 2023, and the edtech major is in a spot of bother. In the past year or so, it has been hit by a funding crunch, a decline in valuation (in May, investment firm BlackRock cut its valuation to $8.4 billion from $22 billion achieved in March 2022; Prosus valued it at $5.1 billion in June), governance issues, low demand as schools reopened after the pandemic, and accusations of aggressive sales practices, among others. Both time and money seem to…

There is something extremely charming about vintage cars. Whether it is the sleek curves of a roadster, the roar of a classic engine or the details of a meticulously restored dashboard, there is no denying the allure of these automotive treasures. The desire for vintage cars and the ever-growing community of individuals who are captivated by the nostalgia and love for these has led to them becoming great investment vehicles too. Consider this: As per the Knight Frank Luxury Investment Index, the asset value of classic cars appreciated by 25 per cent year-on-year in 2022. So what should you keep in mind if you are buying a vintage car either as a passion or as a passionate investment? First of all, understand that these are high maintenance. “When acquiring a…

THE HISTORY OFpilot watches is almost as old as aviation itself. Of course, most people who wear pilot watches today don’t fly planes and most modern pilots don’t depend upon these watches. But their charm is undeniable. Just strapping one on your wrist brings with it a sense of adventure, of soaring skies and dogfights, a la Top Gun. One of the latest additions to the pilot chronograph watches is Breguet’s Type XX launched after four years of preparation. Drawing on its inexhaustible heritage, the Swiss watchmaker has launched the new Type 20 (Chronograph 2057) and Type XX (Chronograph 2067)—a military-inspired and civilian take, respectively, on the classic design. The term Type 20 references the original 1950 specifications issued by the French military. The Type 20 Chronograph 2057 is inspired by…

A Bharat Petroleum Corporation oil refinery in Mumbai’s Mahul SOURCE CMIE ECONOMIC OUTLOOK, PPAC 39 PER CENT The decline in Brent crude oil prices in the past year—from $122.7 a barrel in June 2022 to $75.1 in June 2023 222.3 MILLION TONNES The total consumption of petroleum products in the country in FY23, up 10 per cent from 201.7 million tonnes in FY22 `16.8 LAKH CRORE The value of imported crude and petroleum products in FY23, which is 29 per cent of India’s total imports of `57.3 lakh crore…

WHEN THE INDIAN government had announced an incentive scheme in December 2021 to develop a semiconductor ecosystem in the country, the only Indian business house that committed to the opportunity was Anil Agarwal-led Vedanta Group. With no prior experience in electronics manufacturing, let alone semiconductors, the gas-to-metals conglomerate had entered into a joint venture with Taiwan’s Hon Hai Technology Group (Foxconn) to apply for it. Along with a partner who would bring in the technology and know-how needed to produce chips—which only a handful of companies in the world possess—the two were to set up one of the first semiconductor fabrication plants in the country. With a 67 per cent stake in the joint venture (JV), Vedanta was responsible for building the fab, while Foxconn was responsible for bringing in…

AT THE 50TH MEETING of the GST Council on July 11, a number of key decisions were taken ranging from rate tweaks to tighter registration processes for businesses, and most importantly, on the tax treatment of online gaming. There were also other important decisions, like the one on multi-utility vehicles (MUVs) that could make them slightly more expensive after the compensation cess was increased to 22 per cent on some categories. But it wasn’t all bad news. The Council brought some cheer for moviegoers by cutting the GST rate on food and beverages sold separately in cinema halls to 5 per cent from 18 per cent earlier. It also cleared the appointment and service terms for members of the GST Appellate Tribunal. However, the decision that was most eagerly awaited…

A REPORT BY the Commissioner of Railway Safety (CRS) for the South Eastern Circle of the Indian Railways blames technical lapses in signalling for the triple train accident on June 2. But experts say that the report fails to clearly identify the underlying causes to prevent a recurrence. The accident in Odisha’s Balasore district left 295 dead and over 1,200 injured. Incidentally, it bears an eerie similarity to the 1999 Gaisal train accident in West Bengal, where two passenger trains collided, killing around 300 passengers, again due to a signalling error. “There are specific issues that successive railway inquiries have failed to capture,” warns safety expert Lalit Chandra Trivedi, who retired as General Manager of East Central Railway. A railway system has two components comprising fixed and rolling stock infrastructure. The fixed…

SOME SIX MONTHSago, Hyderabad-based Ind-Barath Energy walked out of the Insolvency and Bankruptcy Code (IBC) proceedings with a new buyer, JSW Energy, after nearly four years. Under the IBC’s timelines, the process should have taken six months, or a maximum of a year if one factors in litigation. The outcome was equally disappointing, with banks recovering just `1,047 crore of the `5,500 crore of dues the thermal power producer had. Ind-Barath isn’t an exception. More than half the default cases at the IBC have been languishing for more than nine months without any resolution. Besides, the financial creditors—mostly banks—are usually able to recover only a small percentage of the admitted claims. For instance, in the case of Videocon Industries, the recovery was just around 5 per cent. The average recovery value…

XUV700 LAUNCHED IN AUGUST 2021 EX-SHOWROOM PRICE ₹14,00,801 ONWARDS TOP FEATURES BUILT-IN ALEXA SMART ASSISTANT, ADAS ALL-NEW THAR LAUNCHED IN OCTOBER 2020 EX-SHOWROOM PRICE ₹10,54,500 ONWARDS TOP FEATURES OFF-ROAD CAPABILITY, TOP PERFORMANCE SCORPIO-N LAUNCHED IN JUNE 2022 EX-SHOWROOM PRICE ₹13,05,500 ONWARDS TOP FEATURES TOUCHSCREEN INFOTAINMENT SYSTEM, ELECTRONIC STABILITY CONTROL BOLERO NEO LAUNCHED IN JULY 2021 EX-SHOWROOM PRICE ₹9,62,800 ONWARDS TOP FEATURES MULTI-TERRAIN CAPABILITY, SEVEN-SEATER CONFIGURATION XUV400 LAUNCHED IN JANUARY 2023 EX-SHOWROOM PRICE ₹15,99,000 ONWARDS TOP FEATURES SINGLE-PEDAL DRIVE, EV WITH 34.5/39.4 KWH BATTERY WITH RANGE OF 375/456 KM…

what was science fiction of yore is flagship tech of today. And what is flagship tech today will become accessible to a larger set of consumers tomorrow. That, in a nutshell, is the democratisation of technology, which takes place for reasons such as economies of scale, lower prices, innovation and greater demand. A sterling example is the iPhone. Before 2020, only the line-up’s flagship Pro models sported OLED displays; the non-Pro models had to make do with IPS LCD displays. But come 2020, all iPhones in the line-up were provided with OLED displays. The story is similar in the automotive space, where some features available in premium cars now could well be available in more mass-market variants in the future. Here is our pick of four such features: ADVANCED DRIVER…

DID YOU KNOWthat India has more than 1,100 individuals across 122 cities with a wealth of more than `1,000 crore each? Or that more than 600 of them—including 149 new faces—saw their wealth stay the same or increase in 2022? These are just two of the many interesting insights thrown up by the IIFL Wealth Hurun India Rich List 2022, which also showed that overall wealth is on the rise, and there is no dearth of wealthy individuals in the country. With the overall increase in wealth and the number of wealthy people, a corresponding rise in the demand for wealth management services could not be far behind; in fact, the past few years have shown that an increasing number of wealthy people—high networth individuals or HNIs—are opting for professional money…

PAL-V Liberty PAL-V.COM $499,000 This three-wheeled Dutch flying car can switch from driving to flying in just about five minutes. Classified as an autogyro, which means it doesn’t have a propeller, the PAL-V Liberty uses a rotor—powered by the car’s engine—to generate lift, and it can reach a top speed of 160 kmph on the road, and 180 kmph in the air. It can fly you up to 500 km on a single tank of fuel, and has a range of 1,300 km on land. The standard version is available for pre-booking (including in India) at a base price of $499,000, and the company has already received over 1,000 preorders. If you plan to book one, do check out the numerous customisations on offer. Alef Flying Car ALEF.AERO $300,000* While…

What was the problem you were grappling with? As I worked my way up the corporate ladder from mid-management to senior leadership roles, I encountered a classic case of the ‘mindset change’ problem. Even though I was delivering on all the focus areas, it was seen as a matter of tactical, rather than strategic execution excellence. This started becoming an impediment to my career progression. Whom did you approach for advice? I approached my mentor Richard Petrino, Executive VP and COO of American Express National Bank. What was the advice you received? Petrino said that besides delivering results, I should also focus on three key leadership tenets: Set the strategy, bring others on board, and do it the right way. Typically, when we start our careers, we tend to focus…

Going Steady THE BSE AUTO INDEX AND THE SENSEX HAVE MOVED IN TANDEM IN THE PAST DECADE Data has been indexed to 100; Source: ACE Equity Charging Ahead THE CYCLICAL RISE AND RECOVERY IN URBAN DEMAND DROVE THE COMBINED TOP LINE OF BSE-LISTED AUTO AND AUTO ANCILLARY FIRMS TO A RECORD HIGH IN FY23 Source: ACE Equity Stepping on the Gas THE CONSOLIDATED NET PROFIT OF THESE COMPANIES ALSO JUMPED NEARLY 13 TIMES IN FY23 FROM A LOW OF `3,468 CRORE IN FY19 Prime Movers TATA MOTORS AND MAHINDRA & MAHINDRA WERE THE TOP 2 AUTOMAKERS IN TERMS OF SALES IN FY23, THANKS TO PERSISTENT HIGH DEMAND FOR THEIR LATEST MODELS *Samvardhana Motherson International; Source: ACE Equity Pole Position MAHINDRA & MAHINDRA AND MARUTI SUZUKI INDIA WERE THE TWO MOST…

The rural infrastructure of Chhattisgarh has undergone a complete transformation under the able leadership of Chief Minister Mr. Bhupesh Baghel. He holds the rural and tribal communities of his State close to his heart. CM Mr. Bhupesh Baghel waived off the loans of the farmers and ensured that they get fair price for their produce. Further, tribal people connected with the water, forest and land were given forest rights lease and community forest resources rights. In addition to this, PESA law was tightly enforced in Scheduled Areas. Suraji Gaon Yojna has been started to ensure the participation of farmers and people in the economy of the State. Chhatisgarh is the only State of the country which is giving subsidy to farmers growing Kodo, Kutki and Ragi crops under the Rajiv…

After the GST Council’s 50th meeting recently, Union Finance Minister Nirmala Sitharaman said that in addition to the GST of 28 per cent, a compensation cess of 22 per cent will be levied on the sales of all multi-utility vehicles (MUVs)—this includes sports utility vehicles (SUVs), multi-purpose vehicles (MPVs) and crossover utility vehicles (XUVs). Earlier, only Mahindra & Mahindra’s (M&M) core segment, SUVs, attracted the 22 per cent cess, but now MPVs and XUVs, too, will fall under this category. M&M’s Marazzo and Bolero are likely to be affected by this move. The Council has defined an SUV as a vehicle with a length of 4 metres or above, with an engine capacity of 1,500cc and above, and unladen ground clearance of minimum 170 mm. An M&M spokesperson said the firm…

IN MAY 2019, Rajeev Chaba, then President and Managing Director of MG Motor India, was a proud man. He had just overseen the launch of the company’s first locally made sports utility vehicle (SUV). In the year and a half that followed, the company sold over 72,000 units, no mean feat for a new entrant. Little did Chaba know then that four years after its launch with much fanfare, he would have to scout for a buyer for the company—owned by SAIC Motor Corporation, the largest Chinese state-owned automobile manufacturer—as it looks to ‘Indianise’ its operations by selling a majority stake to Indian investors. Billionaire industrialist Sajjan Jindal is reported to be interested in acquiring a 48 per cent stake in the company. But then again, the wheels of commerce…

THE YEAR WAS 2015. Among the many things Arun Jaitley, then the Union Finance Minister, announced in the Budget, were two sentences on a new scheme to promote the use of electric vehicles (EVs) in India. As beginnings go, this one was quite modest. Jaitley set aside all of `75 crore for the first year of the scheme, later christened Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India, or FAME. In the first phase that ended on March 31, 2019, a total of `895 crore was spent. And that’s when the Centre decided to raise the stakes. For the second phase, FAME II, the outlay was increased to `10,000 crore. It proved popular, and the government hiked the demand incentive for electric two-wheelers to `15,000 per kilowatt…

IT’S A SCORCHING April afternoon in Dindori, about 45 minutes by road from Nashik. To make matters worse, we are outdoors at a dusty construction site. But the heat and dust don’t seem to bother the project teams that are focussed only on their deadlines. That’s because the teams have their task cut out. In barely a year, this place is set to become unrecognisable as the first phase of the fully integrated second manufacturing campus of Reliance Life Sciences (RLS)—the biotechnology firm fully owned by investment companies of Mukesh Ambani—is expected to be ready. Eventually, the project teams’ efforts are set to transform this undulating, rocky terrain into a picturesque location, with a lake to top it off. “Yes, it is an aggressive timeline and we are on track…

FACTORS THAT CAN RAISE THE VALUATION OF A START-UP • INVESTORS’ EXIT STRATEGY• ASSET TYPE• FUTURE PERFORMANCE• CASH FLOWS• FINANCIAL LEVERAGE• EXPECTED FINANCIAL RETURNS FACTORS THAT CAN HIT THE VALUATION OF A START-UP • SECTOR DEMAND • QUALITY OF STAFF• CUSTOMER LOYALTY• ONLINE PRESENCE• STRENGTH OF BRAND• SUPPLIERS SOURCE: DEAL ROOM BY M&A SCIENCE SHRINKING SIZE Some big start-ups that have faced the biggest mark-downs in their valuation in recent times PEAK VALUATION CURRENT VALUATION (AS OF JULY 15, 2023); SOURCE REGULATORY FILINGS CHASING UNICORNS Not a single start-up in India has achieved unicorn status in 2023 *DATA AS OF JULY 15, 2023; SOURCE INVEST INDIA VARIOUS VALUATION METHODS DISCOUNTED CASH FLOW THIS METHOD ESTIMATES VALUATIONS USING THE EXPECTED CASH FLOWS OF A COMPANY IN THE FORESEEABLE FUTURE MARKET CAPITALISATION…

PORTFOLIO MANAGEMENT SERVICES MANAGE THE WEALTH OF HIGH NET-WORTH INVESTORS (HNIs), WHERE THE MINIMUM INVESTMENT TICKET SIZE IS `50 LAKH MOST PMS SCHEMES HAVE A CURATED PORTFOLIO OF 20 TO 30 STOCKS PORTFOLIO MANAGERS TRY TO GENERATE ALPHA THROUGH ACTIVE FUND MANAGEMENT THE NUMBER OF PORTFOLIO MANAGERS HAS MORE THAN DOUBLED IN THE PAST SEVEN YEARS THE REGULATIONS INTRODUCED BY SEBI IN 2020 HAVE ENHANCED DISCLOSURES AND TRANSPARENCY, CREATING A FRAMEWORK FOR PMS TO GROW SUNIL ROHOKALE MD & CEO, ASK INVESTMENT MANAGERS “PMS is not a mass product. It is for those who have generated wealth or are in the process of generating wealth. The approach is more curated and tailor-made” JITEN DOSHI CIO & CO-FOUNDER, ENAM AMC “The trinity of financialisation, formalisation and digitisation has increased… has led…

REVIEW Apple’s MacBook Air has been its most popular model in the notebook line-up. It is light, has sufficient power to handle daily tasks and is much more affordable than the Pro models. But a 13-inch screen wasn’t big enough for many. For them, Apple has come up with a 15-inch MacBook Air. Departing from its wedge-shaped design, the 15-inch Air bears a resemblance to last year’s 13-inch Air. But the additional screen real estate has come at a price—it is thicker and heavier than the 13-inch. Despite the bulkier chassis, the number of ports remains the same: two Thunderbolt 4 USB-C ports, MagSafe 3 charging port, and a 3.5mm audio port. And the spacious keyboard is a delight to type on. Apple has incorporated six speakers into the larger…