Innholdsfortegnelse for 29 October 2023 i Business Today

⟫ Vedanta may now find it easier to divest assets to deleverage its balance sheet ⟫ Investors looking to invest in specific industries would find it easier since there will be an option to look at separate businesses instead of one large entity 1. Volcan Investments Limited renamed as Vedanta Incorporated 2. Sterlite Technologies Limited (STL); Sterlite Power Transmission Limited (SPTL); Serentica Renewables (Serentica); Konkola Copper Mines Plc (KCM) SOURCE: COMPANY, KOTAK INSTITUTIONAL EQUITIES…

▶ JAPANESE RETAIL BRAND Uniqlo has finally made a foray into Mumbai, the brand’s second largest online market after Delhi. The company said it aims to become the No. 1 brand in India. “This is not about sales or profit. It means being a brand that’s trusted by people all over India,” says Uniqlo India CEO Tomohiko Sei. Having launched its first store in India in 2019, Uniqlo has seen its revenues jump nearly 69 per cent year-on-year to ₹624.6 crore in FY23, while its net profit rose to ₹68.38 crore in FY23, up from ₹21.4 crore in FY22. Sei says the firm could now look at other markets like Pune. The company, which has expanded to 10 stores in India, said it’s looking to make its products more affordable for…

▶ EVER SINCE THE arrival of generative artificial intelligence (AI) platforms like ChatGPT and Bard a year ago, the race among big tech companies to embrace this transformative tech has only intensified. Global software giant Oracle Corporation, too, is making strides by tying up with companies like NVIDIA and Elon Musk’s xAI. Oracle, like many of its peers, has been using AI for quite some time, but “this [generative AI] is different,” says Founder Larry Ellison. “It is a revolution, a breakthrough; it’s transformational. It’s fundamentally changing things at Oracle,” he says. Ellison, who has closely seen technology evolve through the years, is one of the few people who can say this with authority. He co-founded Oracle in 1977; and even at the age of 79, serves as its Chairman…

▸ Earlier, online games of skill attracted 18 per cent GST and games of chance 28 per cent ▸ Now, both games of skill and chance attract 28 per cent GST on the full face value of bets A GAME OF SKILL ● DETERMINED BY WHETHER IT INVOLVES REAL SKILLS OF THE PLAYER ● ONLINE GAMES LIKE CARROM, CHESS, ETC. ● ATTRACTS GST OF 18 PER CENT ON GROSS GAMING REVENUE IF NO MONEY IS INVOLVED A GAME OF CHANCE ● A GAME THAT RELIES PRIMARILY ON LUCK OF THE PLAYER AND UNPREDICTABLE OUTCOMES ● SEEN TO BE LIKE BETTING AND GAMBLING ● ATTRACTS GST OF 28 PER CENT ON THE FULL VALUE OF BETS…

GOOD, BUT CAN do better.” This clichéd response is a ritual at parent-teacher meetings in schools. Now, though, it has also become a constant refrain in one unlikely place: the primary market. Ask any market participant now about the primary market, and pat comes the reply: It’s doing fine, but it can definitely do better in the months ahead. This is because there has been a notable increase in primary market activity, led by small and medium enterprises (SMEs), coming after two roller-coaster years when market participants first experienced exhilarating highs in 2021 before activity tapered and then plunged by the end of 2022. But there is a glimmer of hope that the strong pipeline of initial public offerings (IPOs)—or public issues in local parlance—could spark a repeat of 2021.…

TEN YEARS AGO, Yeh Rishta Kya Kehlata Hai used to garner TRPs of 9-10. Now, it’s a big [achievement] even if you touch 2-3,” says Hindi and Marathi TV serial producer Rajan Shahi, who is known for the show that has been airing on Star Plus since 2009, as well as hits like Anupamaa (Hindi, 2020) and Aai Kuthe Kay Karte (Marathi, 2019). His contemporary, Saurabh Tewari, writer and producer of Hindi shows like Sherdil Shergill on Colors TV and Lakhan Leela Bhargav (LLB) on JioCinema, points out that Anupamaa used to get urban TRP, or target rating points, of 4+ in 2020 when it was launched. “Now, it is at 2.8 even though it continues to be the top show. The volume of consumption (on TV) has come down.”…

CLARIDGE’S, LONDON The Claridge’s in London has been celebrating this classic English tradition for nearly 150 years. Its menu follows the traditional combination of sweet and savoury—think poached Scottish salmon, finger sandwiches, warm scones and pastries that change daily to reflect the fruits of the season. Served in the Foyer, inspired by the 1930s heydey of art deco, with the very finest bone china and silverware, it truly is fit for royalty. Tea connoisseur Henrietta Lovell has scoured the world to craft a menu of interesting teas including a White Silver Tip from the mountains of Fujian in China. PRICE: £105 for adults; £45 for children THE RITZ, LONDON Considering the tradition was started in London, it is little wonder that institutions such as The Ritz are known for their…

▶ INDIANS SEEM TO be gearing up for an exuberant festive season with a number of high-frequency indicators pointing towards robust growth in consumer expenditure this year. For instance, car sales touched a historic high in September amid festive-season bookings and new car launches. Further, GST mop-up has also remained robust at over ₹1.62 lakh crore in the month. Significantly, states such as Maharashtra, Karnataka, Tamil Nadu, and Andhra Pradesh registered 17-21 per cent year-on-year (YoY) growth in GST revenues in September 2023. “GST collections of ₹1.6 lakh crore in the first month of the four-month-long festive season augurs well for the coming months, and is in line with other high frequency indicators, reflecting a positive uptick in the economy,” says M.S. Mani, Partner at Deloitte India. Another key indicator…

MUMBAI-BASED AARUSH AHUJA (name changed) felt his world come crashing down when he saw news channels flashing the headline, ‘GST at 28 per cent on online gaming, horse racing, and casinos at full value’. The 34-year-old couldn’t process the development. He switched off the TV and went to his bedroom. The first thing he noticed was his trusted Sony PlayStation 2 that had started his gaming journey. Ahuja had been obsessed with gaming since childhood, so much so that his parents would often worry. But Ahuja didn’t care; he continued to pursue his passion while balancing his studies. When the time came, he joined an engineering college. But his heart was in gaming and he dropped out. Scouting for opportunities to pursue his passion, Ahuja came across the founder of an…

The Insurance Regulatory and Development Authority of India (Irdai) is on a mission to revamp and reform the insurance sector in the country and increase penetration. Irdai Chairperson Debasish Panda, 61, says the regulator’s emphasis is on lighter regulations and a consultative approach. In an email interaction with Business Today’s Teena Jain Kaushal, Panda shares insights on the sector, the changes planned and the way ahead. Edited excerpts: Q: The insurance sector has seen several reforms in the recent past. What are your plans moving forward? A: Irdai is actively working towards creating an attractive landscape in India’s insurance sector, aligning with the country’s resilient economy and business-friendly market. The primary objective of these efforts is to ensure the availability, accessibility, and affordability of insurance for all citizens and businesses. The initial…

89 MILLION TOTAL NUMBER OF CREDIT CARDS IN EXISTENCE ₹ 5,222 THE AVERAGE CREDIT CARD TRANSACTION PER PERSON 277.8 MILLION CREDIT CARD TRANSACTIONS IN INDIA SO FAR IN FY23 ₹ 4,072 CRORE GROSS NPA IN CREDIT CARDS IN FY23; IT WAS ₹3,122 CRORE IN FY22 ONE FINE DAY, Aradhana Taneja, a 31-year-old IT professional passionate about travel was walking into a bustling shopping mall in Noida when a credit card sales executive from a well-known credit card provider approached her. Though initially uninterested in hearing about the benefits of the card, two perks grabbed her attention. Firstly, the sales rep said the card required no joining fee; and secondly, the card awarded 3x reward points for each domestic premium economy air ticket purchased using it. Plus, he said, she would…

TRAVEL ACTS AS a compass to new perspectives for Faiz Shakir, MD of Sales for India & SAARC at cloud computing firm Nutanix, as work takes him on a journey almost every week. But equally important is reconnecting with family, with whom he takes short, rejuvenating getaways every few months. While work takes him to various places in India and abroad, his family getaways lean more towards well-known tourist destinations, giving him a chance to unwind and create lasting memories together. It was a recent getaway to Japan that reminded him why it is his favourite destination. “The blend of ancient traditions and modern innovations creates an enchanting atmosphere. From the tranquil gardens and shrines to the bustling cityscapes, Japan’s diverse landscapes never cease to amaze me.” However, what truly…

What was the problem you were grappling with? I faced a key customer as project lead for the first time. The customer was demanding, and the work complicated. They wanted a schedule pull-in, and I was worried about their high expectations. The customer had their own views on a remote team in India delivering the most crucial IP with a woman lead. They probably asked leadership if another team could take over the project. But, my team didn’t understand why I was pushing them to meet the deliverables timetable when they were already doing well. I was caught between client demand and team expectations. Whom did you approach for advice and why? AMD Chief Technology Officer Mark Papermaster, my project leader, helped me negotiate the situation. What was the advice…

61,346₹/10 gm THE ALL-TIME HIGH GOLD SCALED ON MAY 4, 2023, UP 17 PER CENT SINCE THE RUSSIA-UKRAINE WAR, AS PER DATA FROM MCX 11 per cent THE GAINS SILVER WITNESSED IN THE PAST YEAR COMPARED TO THE 10 PER CENT AND 13 PER CENT RISE REGISTERED BY GOLD AND THE SENSEX, RESPECTIVELY 65 THE NUMBER OF TRANCHES OF SOVEREIGN GOLD BONDS THE RBI HAS LAUNCHED SO FAR SINCE ITS INCEPTION IN 2015, WHICH INDICATES ITS POPULARITY AS AN INVESTMENT OPTION 4,740 tonnes TOTAL GLOBAL DEMAND FOR GOLD IN 2022, UP 18 PER CENT FROM THE 4,012.8 TONNES IN THE PREVIOUS YEAR, ACCORDING TO THE WORLD GOLD COUNCIL A BRIGHT FUTURE PRICES OF PRECIOUS METALS MAY CONTINUE TO RISE IN THE NEXT 12-24 MONTHS, SAY EXPERTS…

▶ THEORETICALLY, JPMORGAN’S DECISION to include Indian government bonds (IGB) in its emerging markets government bond index appears to be a game changer. The move is expected to channel $25-30 billion of foreign funds into India’s government bond market. The increased participation of foreign investors in the Indian bond market could enhance the market’s depth, help reduce the government’s cost of raising funds, incentivise the government to pursue favourable macroeconomic and fiscal management policies—a long-standing market demand—and also improve India’s external balance sheet by way of higher forex reserves, and stabilise the rupee’s valuation against the US dollar. However, in practice, there may be uncertainties along the way that could make achieving these objectives a challenge. India’s inclusion in JPMorgan’s Government Bond Index-Emerging Markets (GBI-EM) will start in June 2024, with…

PRE-COVID AND POST-COVID CHALLENGES FORFINTECHS The conversation began with a discussion on the challenges faced by fintechs, particularly in light of the COVID-19 pandemic. Vivek Veda noted that fintechs, which primarily deal with small-ticket, short-tenure loans, encountered significant risks during the pandemic due to the sudden lockdowns and potential defaults. To navigate this crisis, fintechs adopted innovative collection practices, focusing efforts on regions less affected by lockdowns. The pandemic compelled fintech companies to evolve their risk models and adjust their risk appetite to build a more robust system. GEOPOLITICAL RISKS AND REGULATORY CHALLENGES Sourav Majumdar pointed out that geopolitical events, such as the Russia-Ukraine conflict, have added another layer of complexity for fintech companies. Vivek Veda acknowledged the impact of geopolitical risks on the industry and emphasized the importance of…

Digital learning has transformed traditional classrooms and methods of teaching like never before. While classroom lessons remain the main source of learning for most children, online modules are playing an important part in covering course work on time and streamlining assessment processes. The growing importance of online teaching became clearer when schools and colleges were shut across the country for months because of the COVID-19 pandemic. At that time, online classes were the only way that students could be taught. Even before the pandemic, the government had been laying stress on taking digital education to all rural parts of India. In line with that vision, Smart Classes were launched in Jharkhand’s Godda district in 2018. So far, more than 60,000 students have benefited from the programme. Currently, 314 government schools…

CIPLA LTD, BEST known as an innovator that broke the monopolies of multinational pharmaceutical giants to sell affordable drugs for AIDS and the flu, has suddenly become the pill that big investors and rivals want to pop. Set up in 1935 by Khwaja Abdul Hamied, a chemist and disciple of M.K. Gandhi, Cipla is also a star of India’s freedom movement with a storied history. Today, Blackstone, the world’s largest private equity group, is looking for the entire promoters’ stake of 33.47 per cent owned by the Hamied family. So are Indian rivals Torrent Pharmaceuticals and Dr. Reddy’s Laboratories. Yusuf Khwaja Hamied, 87, the founder’s son and current Chairman, is non-committal. Hamied, a doctorate in chemistry from Cambridge University who took over in 1972, has had a long innings, steering…

NOTE FIGURES IN BRACKETS INDICATE THE PERCENTAGE OF SMALL AND MEDIUM BUSINESSES USING THIS SERVICE; SOURCE Today 29 WHATSAPP October 2023 FOR BUSINESS SURVEY, GOODFIRMS, 2021 NIKILA SRINIVASAN’S ELDERLY mother in Chennai uses WhatsApp to talk to her milkman. Like millions of other Indians, the messaging service is her link to various users and services, and her US-based daughter. “WhatsApp is a place where people are having their everyday conversations,” says Srinivasan, Global VP of Business Messaging at Meta. One of her responsibilities is to look for ways to monetise WhatsApp. And that is a question that has bugged the messaging service for long. In 2014, when Facebook (now Meta) Founder and CEO Mark Zuckerberg unveiled his plans to acquire WhatsApp for $19.6 billion, many called the deal over-valued. But…

THE IPHONE 15 PLUS may seem similar to its predecessor, but a closer look reveals a more premium fit and finish, thanks to some tweaks. The edges of the aluminium frame have been rounded off slightly, making it comfortable to hold. And Apple’s new colour-infused glass rear in matte, replacing the glossy glass, makes the back look premium, and very similar to the Pro models. The phone has the same 6.7-inch OLED screen from last year, but what enhances its appeal is the inclusion of Apple’s Dynamic Island—that made its debut on the Pro models last year—instead of the notch. Overall, the display’s brightness, colour reproduction and viewing angles are great. And with peak brightness of 2,000 nits, sunlight legibility gets a big boost. But there are two misses: the…