Innholdsfortegnelse for 1 October 2023 i Business Today

In 2016, Mukesh Ambani’s Jio stormed into the telecom space with a predatory pricing strategy and a network that changed the game for the sector and forced competitors to rush to the drawing board. India became known for low data prices, and other players had to follow suit. Now, seven years on, Ambani is aiming for an encore, this time in the highly competitive world of financial services, through the newest member of the Reliance stable, Jio Financial Services (JFS). Already, after the demerger and subsequent listing of JFS on the stock exchanges, the fledgeling JFS commands a market capitalisation of around ₹1.6 lakh crore—bigger than several public sector banks and next only to that of State Bank of India (SBI). With a net worth of ₹1.2 lakh crore, Ambani…

FOR ● War chest, AAA rating to allow it to get funds at a cheaper rate ● Management bandwidth, ability to attract top-notch talent ● Synergies with group companies, especially on the retail and telecom sides ● Ability to attract partners of repute from the global market AGAINST ● BFSI is a highly regulated and leveraged business ● Competition hotting up with new players like Piramal, Poonawalla, Godrej and new-age players ● Unsecured lending is fraught with risks ● Size and scale of JFS to attract RBI’s supervision for any systemic risk…

18‚040 The number of stores that gives it a retail presence across 7,000-plus towns 480 MILLION Number of mobile and fixed line subscribers 249 MILLION Registered customer base at retail outlets 780 MILLION Footfall across all its stores 3 MILLION Merchant partnerships 250‚000 Artisans, weavers and micro entrepreneurs associated with its companies FIGURES AS OF MARCH 31, 2023; SOURCE RIL PRESENTATIONS…

CHIEF ECONOMIC Adviser V. Anantha Nageswaran believes a simple recession or slow-down around the world, on balance, will not be a bad thing for India, which has till now remained largely unscathed by global economic developments. In an interview to Business Today, he says that while weak merchandise export growth is not a surprise, services exports remain resilient. Edited excerpts: How do you see the Indian economy performing amidst the global economic slowdown? The global slowdown is not so big an issue for India. Even last year, the global economy was beginning to slow down… commodity prices went up, interest rates went up, while merchandise exports growth in India stagnated. But we achieved a 7.2 per cent real GDP growth in FY23 and I have said many times that this will eventually…

THERE WAS A SENSE of euphoria among consumer goods makers at the end of 2020. Lockdowns to check the spread of Covid-19 had just been eased, unleashing a deluge of pent-up demand that consumers predominantly channelled towards goods because most services were shut. Recalling those days, Kamal Nandi, the Business Head and Executive Vice President of Godrej Appliances, says that though the crucial summer season had been washed away, sales of essentials from refrigerators to washing machines had shot through the roof by October. And it wasn’t just urban customers loosening the grip on their wallets. A large mass of the urban workforce that was forced to migrate back to the hinterland also flocked to shops and online portals. But that euphoria didn’t last. Consumers clamped down on discretionary spending because…

1 RAMESH CHAUHAN SOLD HIS SOFT DRINKS BUSINESS CONSISTING OF BRANDS LIKE THUMS UP, MAAZA AND LIMCA TO COCA-COLA IN 1993 FOR $60 MILLION 2 A FEW YEARS LATER, HE TURNED HIS ATTENTION TO BISLERI TO BUILD A MARKET AROUND PACKAGED DRINKING WATER 3 SUSTAINED INVESTMENTS MADE IN MANUFACTURING AND BRAND BUILDING HELPED MAKE BISLERI THE TOP PLAYER 4 THE COMPANY NOW WANTS A BIGGER PRESENCE IN SOFT DRINKS AND ALSO DOMINATE THE HIGHLY-FRAGMENTED WATER BUSINESS 5 A DEAL TO SELL OUT TO TATA CONSUMER PRODUCTS FELL THROUGH AND CHAUHAN’S DAUGHTER JAYANTI IS CLEAR THAT SHE WANTS TO GROW THE BUSINESS “WE WANT TO CREATE THE MOST UNIQUE PRODUCT PORTFOLIO AND ARE VERY SERIOUS ABOUT THE BUSINESS… [WE] ARE NOT EVEN THINKING OF A SALE”JAYANTI CHAUHANVICE CHAIRPERSON, BISLERI INTERNATIONAL…

Many finfluencers fudge their trading record to attract more followers Influencers with a huge following can make a lot of money with every video Earnings can be through Google advertisements, collaborations, affiliate partnerships The higher the number of views for the video, the higher the income through Google ads As part of collaborations and partnerships, influencers promote a product or service Such promotion could get them a referral fee, a lump sum fee or even a share of profit…

Crypto trading has slumped, with Bitcoin losing over half the value it had in 2021 The decline in crypto trading volumes in India can in part be attributed to the imposition of heavy taxes on crypto Crypto exchange founders are pivoting for survival, from diversifying revenue streams to embracing DeFi and even relocating to crypto-friendly countries Some exchanges are expanding into Web 3.0, while others plan to offer products like mutual funds, aiming to leverage their existing user base…

What was the problem you were grappling with? Professionals confront several problems. A stage arrives when you feel you are at a crossroads. Taking on new initiatives beyond my core responsibilities was one such challenge. It required me to put in additional effort without any assurance of immediate gains or recognition. Additionally, annual appraisals were usually done based on KRAs defined around core responsibilities. There was also a risk of failure. The decision was hard because it required me to risk my career and leave my comfort zone. Whom did you approach for advice and why? I reached out to my father with whom I always shared all my dilemmas. His 35-year stint in the corporate world gave him a wealth of experience that I was lucky to tap into.…

DATA AS OF SEPTEMBER 11, 2023; SOURCE SACNILK.COM; ORMAX MEDIA, DHISHOOM CINEMAS, MEDIA REPORTS ₹7,504 CRORE All-India gross box-office collections from 137 movies released so far this year, with more than 20 per cent earned since August 2 MOVIES that crossed the ₹500 crore-mark in gross collections in 2023—Pathaan and Gadar 2 ₹10-11K CRORE The expected gross box-office collections for 2023, compared to ₹10,637 crore in 2022…

▶ AS TRADITIONAL CARMAKERS ramp up their electric vehicles play with a view to eventually replace diesel- and petrol-run vehicles, a new brand identity makes much more sense rather than having a mixed portfolio under the same old brand. With that in mind, Tata Motors—India’s largest EV maker—has said that its EVs will be branded under the ‘.ev’ suffix, adding that going forward, ‘Tata.ev’ will be the overall brand identity for its EV business. With this, Tata Motors aims to differentiate its ICE and EV versions of the same model for the customer. THE NEW ELECTRIC BRAND IDENTITIES ARE EXPECTED TO GENERATE MORE INTEREST AMONG CUSTOMERS Its close competitor in the SUV space, Mahindra & Mahindra’s (M&M) newly-set-up subsidiary Mahindra Electric Automobiles Limited (MEAL), too, aims to create a new visual…

▶ IN 2004, JACK MA, the Co-founder of China’s Alibaba, an e-commerce business then just five years old and yet to become a world-beater, launched payments platform Alipay for its retail customers and merchants. In a decade, Alipay (later reborn as Ant Financial) became China’s leading financial services giant, offering a digital wallet, consumer credit, money market funds, wealth management, and a digital-only bank for small enterprises. Ant Financial soon had $600 billion in assets under management as it layered various financial services atop the e-commerce platform. What also worked was China’s underserved and unbanked population, with an aspirational middle class—and a surge in smartphone use. China’s financial services sector, dominated by state-owned banks, was also ripe for disruption. Ma had struck gold. Mukesh Ambani’s Jio Financial Services, dubbed the…

▶ THE CORPORATE TREE Holding company: Jio Financial Services Subsidiaries • Reliance Retail Finance • Reliance Retail Insurance Broking • Reliance Payment Solutions • Jio Information Aggregator Services • Reliance Industrial Investments and Holdings Associate firms/joint ventures • Jio Payments Bank Ltd • Jio and BlackRock (mutual funds) • Jio Life Insurance (proposed) • Jio General Insurance (proposed) ● Every company will be run independently with a separate CEO ● This independent structure will help easily attract focussed investors ▶ ADVANTAGE JIO NET WORTH ₹1‚20‚000 CRORE REVENUES ₹41.63 CRORE MARKET CAP ₹1‚60‚000 CRORE PROFITS ₹31.25 CRORE NAV ₹179 PER SHARE ● High net worth will allow JFS to leverage balance sheet for lending ● The current m-cap of JFS is only next to SBI among PSBs SIZE OF THE TARGET JFS…

This ex-ICICI Bank exec has had stints in London, Frankfurt, and Hong Kong. Has done extensive work in digitisation of trade finance and cash management services A former ICICI hand, his last stint was with SBI as its CFO Another former ICICI hand, he was a part of Kamath’s team at New Development Bank headquartered in Shanghai, China Known for building the ICICI Group, Kamath is also credited with creating the BRICS-sponsored New Development Bank. He is currently the Chairman of National Bank for Financing Infrastructure and Development (NaBFID), a new development finance institution for supporting infrastructure financing…

MARCH 2021 INFLATION IN KEY COMMODITIES STARTS TO AFFECT MARKET LEADERS LIKE HUL, WHICH BEGINS RAISING PRICES AND COST OPTIMISATION JUNE 2021 RURAL DEMAND GROWS 4 PER CENT MORE THAN THE OVERALL FMCG MARKET, BUT SIGNS OF DISTRESS BEGIN TO APPEAR; URBAN LAGS SEPT 2021 SALES VOLUMES IN RURAL MARKETS PLUNGE OVER 5 PER CENT YEAR-ON-YEAR AS DOWNWARD TREND BEGINS DEC 2021 OCEAN FREIGHT JUMPS THREE-FOLD, CRUDE AND PALM OIL PRICES UP 80 PER CENT AND 60 PER CENT, RESPECTIVELY MAR 2022 OVERALL FMCG VOLUMES PLUNGE 8 PER CENT AS THE RURAL MARKET SHRINKS BY 10 PER CENT JUNE ’22-MAR ’23 STEEP PRICE HIKES BY FMCG MAJORS LEAD TO CONTINUED CONTRACTION (4-9 PER CENT) IN RURAL VOLUME OFFTAKE…

1969 Jayantilal Chauhan buys Bisleri Ltd, an Italian company, from Felice Bisleri 1991 Bisleri introduces the 20-litre pack for both home and office use 1993 Ramesh Chauhan sells soft drinks portfolio to Coca-Cola 1995 Bisleri launches 500-ml bottle at ₹5 1998 Introduces tamper-proof bottle 2000 Launches 1.2-litre Bada Bisleri 2006 • Bisleri launches Natural Mountain Mineral Water from the Himalayas • Changes its packaging from blue to green, disrupting market norm 2011 Bisleri launches its Club Soda 2012 Bisleri mountain water relaunched as Vedica 2018 Bisleri opens vertical manufacturing plant in Mumbai 2019 Angelo George named Bisleri CEO, the first professional to hold the post 2020 Firm takes D2C route after the pandemic 2023 Bisleri re-enters the soft drinks space and is looking to increase non-water revenue from 7–8 per…

The International Organization of Securities Commissions (IOSCO) is holding discussions on unregistered finfluencers In December 2022, SEC charged eight influencers in a $100 million stock manipulation scheme The UK’s FCA has a mechanism for finfluencers to check if they are eligible to promote a product Australia’s ASIC mandates Australian financial services (AFS) licence for finfluencers “… FINFLUENCERS NOT REGISTERED WITH THE… REGULATOR MAY NOT HAVE THE REQUISITE…EXPERTISE ON THE SUBJECT. WORSE… THEY MAY NOT DISCLOSE ANY POTENTIAL CONFLICT OF INTEREST…”SEBI CONSULTATION PAPER “CELEBRITIES SHALL NOT FORM PART OF ADVERTISEMENTS… ‘CELEBRITY’ MEANS AND INCLUDES ANY PERSON…WHO IS AN INFLUENCER WITH MORE THAN 10 [LAKH] FOLLOWERS/SUBSCRIBERS ON ANY SOCIAL MEDIA PLATFORM…”NSE’S REVISED CODE OF ADVERTISEMENT FOR BROKERAGES “There are instances where these influencers have breached ethics by faking returns (to gain more…

1 Isha (left), Akash (middle) and Anant have been appointed to the board of the $119-billion diversified Reliance Industries Ltd as non-executive directors 2 According to experts, the company’s high degree of diversification bodes well for its succession plans 3 Isha runs the retail business, Akash is in charge of the telecom business and Anant oversees the new green energy business of RIL 4 The move is being viewed as a clear indication of succession planning in the group 5 The three children of Mukesh Ambani have already spent time learning about the businesses to which they have been assigned…

Reliance has capitalised JFS with a net worth of ₹1.2 lakh crore to create one of the world’s highest capitalised financial services platforms at its inception Jio Financial’s digital-first architecture is expected to give it an edge in reaching millions of Indians Entering a highly capital-intensive business, RIL has provided JFS with a strong capital foundation to build a trusted financial services enterprise and achieve growth JFS has a strong leadership team that has financial industry experience and young leaders who are eager to take on big challenges Note: Culled from Mukesh Ambani’s address to shareholders on August 28, 2023…

AUGUST 2015 Secures a payments bank licence from the Reserve Bank of India AUGUST 2019 Reliance Jio joins hands with Microsoft to cover the digitisation needs of the MSMEs, suppliers, and dealers. Offers a relationship for lending JULY 2021 Buys out Yellow Pages company Justdial in a cash deal worth ₹5,710 crore that gives it a ready-made data base for lending NOV 2022 K.V. Kamath comes in as an independent director on the board of RIL; takes over as non-executive Chairman of JFS JAN 2023 Former ICICI Bank exec Hitesh Kumar Sethia joins the company; later takes over as CEO of Jio Financial Services FEB 2023 JFS gets an Account Aggregator licence from RBI, allowing it to access and share customer data JULY 2023 Decides to demerge the financial services…

THIS IS INDIA’S decade. Bullish about the country’s growth potential, a flurry of recent reports have said so; some have even called it India’s century. While the India growth story may be strong in the long term, the near-term picture is not so sunny. There are rising concerns about how well India can ride the brewing global storm as well as emerging domestic challenges like a weak monsoon that could further fuel inflationary pressures and hit consumption demand. The upcoming general elections in 2024 could also impact the capital expenditure (capex) plans of the government that are currently on in full swing. Let’s talk numbers. The economy expanded at a four-quarter high of 7.8 per cent in the April-June 2023 quarter, boosted by the services sector and strong domestic demand.…

YES! I WISH TO SUBSCRIBE TO BUSINESS TODAY Please tick your subscription choice and send the form to: We Care, Living Media India Limited, C-9, Sector 10, Noida-201301 (India) SCAN HERE TO SUBSCRIBE FOR MORE DETAILS ON THE OFFER, YOU MAY CONTACT THROUGH PHONE AND WHATSAPP +91 8597778778 E-MAIL wecare@intoday.com LoG oN 10 www.businesstoday.in Living Media India Ltd. reserves the right to terminate or extend this offer or any part thereof at any time. For other terms and conditions, please visit www.businesstoday.in IRS 2019 Q4 (TR)…

10 TRANSACTIONS COMPLETED (Includes Air India, Neelachal Ispat, Dredging Corporation of India) 14 ONGOING TRANSACTIONS BY DIPAM (Includes BEML, Shipping Corporation of India, Rashtriya Ispat Nigam Ltd, IDBI Bank) 3 ONGOING TRANSACTIONS BY ADMINISTRATIVE MINISTRIES (Includes various units of ITDC Ltd, Hindustan Antibiotics Limited) 5 TRANSACTIONS HALTED AS CPSE TO BE CLOSED (Includes various units of ITDC Ltd, Hindustan Antibiotics Limited) 1 TRANSACTION HELD UP DUE TO LITIGATION (Karnataka Antibiotics & Pharmaceuticals) SOURCE PARLIAMENT PAPERS…

THERE A MOMENT from her teens that is etched in Jayanti Chauhan’s memory. Accompanying her father, Ramesh Chauhan, often called the cola king, to the Evian mineral water bottling plant in France she was stunned by the sophistication. There were just three people on the shop floor at Évian-les-Bains (to the locals, it is just Évian) and it sparked a desire to have a plant like that. “It was quite a revelation to see an automated pallet system. It must be even more sophisticated now,” she says, still awestruck two decades later. Walking us through her own plant in Mumbai’s suburb of Andheri, Chauhan, now Bisleri International’s Vice Chairperson, grins when she points to just a handful of folks n the factory floor. “We have also changed a lot. There…

IT IS A TRUTH, almost universally acknowledged, that technological change is always a few steps ahead of regulations. The capital markets are no exception, which is why regulators the world over are a busy lot as they try to keep pace with the changes. Whether it is India’s own Securities and Exchange Board of India (Sebi), the Securities and Exchange Commission (SEC) of the US, the Financial Conduct Authority (FCA) in the UK, or the Australian Securities & Investments Commission (ASIC), one particular concern appears to be on top of their minds—the growing influence of financial influencers, or finfluencers. Put simply, these are individuals who influence the financial investment decision of a person or entity by doling out content typically through social media platforms like YouTube, Instagram, Telegram, or X…

THE YEAR WAS 2021. Terms such as crypto, blockchain and NFT had captured the popular imagination. The value of Bitcoin, the most popular crypto asset, rocketed to a peak of almost $69,000 in November. Indians, too, couldn’t resist the charms of this digital currency, with an estimated 100 million-plus trading in cryptos—the highest in the world, per broker discovery and comparison platform BrokerChooser. In fact, a 2022 report by trade and the United Nations Conference on Trade and Development (UNCTAD) said that more than 7 per cent of the Indian population owned cryptocurrencies in 2021. The year also saw crypto exchanges flourish in the country with their trading volumes growing and their founders being the toast of the town. Cut to 2023, and Bitcoin has plunged to about half its…