Innholdsfortegnelse for 28 April 2024 i Business Today

MADHABI PURI BUCH, the first woman chief of India’s capital markets regulator, the Securities and Exchange Board of India (Sebi), is not known for pulling punches. If proof was needed of that trait, there was her speech at the CII Corporate Governance Summit on April 2. “There was a time when we, as Indians, used to sit in the last row of global forums. Today we sit centre stage… People turn to India and ask us for guidance and advice. We sit there as panellists in discussions. We are not in the last row. We are sitting in centre stage, receiving awards and giving guidance to the rest of the world on how we have implemented cutting-edge technology.” That statement came less than a fortnight after Sebi approved the T+0…

INDIAN PERSONAL CARE start-up The Good Glamm Group appears to have pulled off a coup, by entering a joint venture with tennis great Serena Williams. The new entity, called Wyn Beauty, aims to capitalise on the growth in the US beauty market. Though the terms of the arrangement have not been disclosed, it marks a shift from the traditional brand ambassador approach since Williams has put in money to be an equity partner. This could ensure a higher and more meaningful commitment. Williams, 42, is a winner of a record 23 Grand Slam singles majors and is acknowledged as not just among the best but a very influential name in the world of tennis. For The Good Glamm Group, this will not just give it a growth opportunity, but will…

BACK IN 1969, when Robert Noyce, having co-founded Intel barely a year ago, visited India to see if he could build a fabrication unit to make integrated circuits, no one had imagined a world dominated by electronics and semiconductor chips, as ICs are called. India offered him the opportunity to set up a fab, but it was too small for Intel’s ambitions. Later, India did make a beginning with the Semiconductor Complex Ltd, but its facility in Mohali, near Chandigarh, was destroyed in a fire in 1989. Today, in a post-Covid world, every major economy that has outsourced semiconductor chip manufacturing for decades, is seeking self-sufficiency. And so is India, with a ₹76,000-crore semiconductor and display fab scheme. While Intel hasn’t considered India yet for a fab, some leading names,…

DID YOU KNOW that the billionaire capital of Asia also minted the highest number of new billionaires last year? And, according to the 2024 Hurun Global Rich List, it’s not Beijing, Shanghai, Dubai, or Hong Kong. It is, in fact, Mumbai. For the first time in recent history, Mumbai has pipped Beijing to the top spot—India’s financial capital is home to 92 billionaires with 27 new entrants, higher than Beijing’s 91 billionaires, with six new additions. More importantly, India added a record 84 billionaires—in sharp contrast to China, which saw the number dip by 155—in a single year. Only the US, with 109 new additions, minted more billionaires last year. With the number of wealthy individuals rising in the country, it comes as no surprise that the demand for professional…

THE DEMAND FOR big-ticket investment options, such as portfolio management services (PMS) or alternative investment funds (AIFs), has grown with the rising number of high net-worth individuals (HNIs). In conversation with Business Today, 53-year-old Vikaas M. Sachdeva, Managing Director of Sundaram Alternates, talks about where the domestic alternative investment industry is headed. Edited excerpts: With India seeing a manifold rise in HNIs, how do you see the investment landscape for the PMS industry? As India’s per capita GDP crossed the tipping point of $2,000 in 2020, discretionary spending has seen a major shift and is expected to increase manifold. Quite like what has happened in the rest of the world, as the number of wealthy individuals grow in India, there has been a change in how they invest. Investors are…

PIYUSH BANSAL, A Delhi-based IT professional working for a multinational firm, has been investing in mutual funds (MFs) since his first job. As his portfolio has grown substantially over the years, Bansal, now 35, is contemplating a shift towards portfolio management services (PMS) to further customise his portfolio for greater returns. “I’ve been investing in MFs since a young age. Now that my assets have grown and my income has increased, I am exploring alternative options to boost the return from my portfolio. However, I am unsure if PMS is the right choice for me,” Bansal remarks. Like Bansal, many are keen to put their money in PMS schemes in the hope of generating higher returns on their investments; but why PMS? This is because PMS has the edge in…

WHILE AUTOMOBILES ARE commonly seen as a means of transport, there exists a select group for whom they embody a fusion of design, prowess, and refinement. Manan Shah, Managing Director of real estate major MICL Group, belongs to the latter category. For him, the allure of owning a luxury vehicle springs from a desire to immerse himself in unparalleled experiences every day. Shah has owned more than 20 luxury cars over the past decade, and his current fleet includes four icons: the Bentley Bentayga, the Porsche Panamera, the Range Rover Vogue, and the Mercedes-Benz G-Class, popularly called the G-Wagon. “Living, as we do, in crowded cities where we are compelled to spend hours in traffic, our daily commute can make a significant impact on our wellbeing. That’s where luxury cars…

SIX YEARS AFTER the electoral bonds scheme was launched as a mechanism to cleanse the system of political funding, the Supreme Court held it as unconstitutional and manifestly arbitrary, mandating the disclosure of all details of bond purchases and their redemptions by political parties. In the process, this has brought donations by corporate houses to political parties out in the open. An analysis by the Association for Democratic Reforms (ADR), a non-profit organisation, which was also one of the petitioners in the case, revealed that out of the total 18,871 bonds worth ₹12,155.51 crore purchased between April 12, 2019, and February 15, 2024, 16,631 were bought by corporate and business houses and 2,240 bonds by individuals. In all, corporate and business houses purchased electoral bonds worth ₹11,780.0297 crore or 96.91%…

VISTARA, THE COUNTRY’S third-largest air carrier, hit a snag of “crew unavailability” in the first week of April, forcing the Gurugram-based airline to cancel many domestic flights. The issue, which has been simmering for some time, will have significant ramifications for the local aviation industry, apart from causing major inconveniences to its passengers, at least over the next few weeks. The root cause of the Vistara crisis lies in the airline’s inability to reach an agreement with its staff over the new pay structure ahead of its merger with sister concern Air India. According to sources, the restructured pay package that guarantees pilots a minimum flying of 40 hours a week instead of the earlier 70 hours would have resulted in a significant reduction in pay. This caused discontentment, especially…

VIJAY SHEKHAR SHARMA’S digital payments journey has weathered many a storm over the years. Now, the 46-year-old’s situation is akin to rowing a boat constantly springing leaks. Sharma fixes one hole, only for another to spring up. Let’s go back a bit. Sharma’s One 97 Communications Ltd (OCL), founded in 2000, pioneered the use of QR codes at merchant outlets much before the demonetisation in 2016, giving its brand, Paytm, a head start. Soon after QR codes became popular, the government came up with the Unified Payments Interface (UPI), sparking a revolution in the digital payments space. UPI levelled the playing field, and service providers such as Google Pay and PhonePe cornered a lion’s share of this. While demonetisation did give a boost to payments firms, it became clear that…

WITH MINIMAL MARKETING and without creating a lot of fuss, assets under management (AUM) of the Indian portfolio management services (PMS) industry has grown 16-fold in the past 15 years. Today, the country’s PMS industry manages ₹32 lakh crore of assets and given India’s robust economic outlook, it is gearing up for exponential growth over the coming decade as Indian families seek to proactively invest their savings. Increasingly, as successful Indian professionals and entrepreneurs are educating themselves regarding the wealth generation tools available to them, many are reaching the conclusion that PMS is likely to be the mainstay for several years to come. The PMS industry in India has evolved over the past two decades as India’s economy has undergone massive structural changes. Some 10-20 years ago, the industry catered…

FIRST GLOBAL, WHICH has grown to become one of India’s leading PMS companies with $600 million (over ₹5,000 crore) of managed assets, both in India and abroad, has delivered over 187% returns to investors as of February 2024 from its India PMS since March 2020, its first full month of operation. The benchmark Nifty 50 has given 105% over the same period. Devina Mehra, Founder, Chairperson & MD of First Global, says it has always been about delivering results, not stories, for those who trust her with their money. In an interaction with Business Today, Mehra, 59, talks about her company’s investment strategies, the use of data and technology to boost investing skills, and the way forward for the industry. Edited excerpts: As we begin FY25, where are you advising…

THE WEALTHY INVESTOR in India has never had it so good. For that, they must thank the robustness and resilience of the country’s financial markets. And their money managers. While not a single portfolio manager catering to the affluent class in India saw a fall in their portfolios in the past 12 months till February 2024, almost 99% of portfolio management services (PMS) schemes delivered double-digit returns, mirroring the vitality of the benchmark BSE Sensex that surged 23%. The broader indices—BSE Mid-Cap and BSE SmallCap—advanced more than 60% each, providing support to multi-cap, flexi-cap, small- and mid-cap schemes, which delivered high returns to investors. In fact, the Top 5 alpha generators recorded gains of more than 100%. Fund managers say the domestic equity market will deliver similar performance in the…

INDIA IS SEEING A RISE IN CYBERCRIMES AND THE GOVERNMENT IS FOCUSSED ON FIGHTING THIS THREAT. THERE HAS BEEN A SUBSTANTIAL INCREASE IN FUNDING FOR CYBERSECURITY IN THE INTERIM BUDGET 2024, WITH THE FIGURE TOUCHING ₹999 CRORE—NEARLY FIVE TIMES THE BUDGET ALLOCATION (ACTUAL) IN FY23. AND THERE’S GOOD REASON FOR IT. ACCORDING TO RECENT FIGURES RELEASED BY THE HOME MINISTRY, INDIANS INCURRED LOSSES TOTALLING ₹7,500 CRORE DUE TO CYBER FRAUDS IN 2023. PWC’S 27TH ANNUAL GLOBAL CEO SURVEY ALSO RANKED CYBER THREATS AS THE SECOND MOST SERIOUS RISK IN THE COUNTRY, BEHIND INFLATION. HERE’S AN OVERVIEW OF INDIA’S CYBERSECURITY LANDSCAPE: SPAM AND SCAM CYBER FRAUDS COST MAHARASHTRA MORE THAN ₹990 CRORE IN 2023, WITH THE STATE REPORTING THE SECOND-HIGHEST NUMBER OF CASES AFTER UTTAR PRADESH SOURCE MINISTRY OF HOME AFFAIRS…

THE RESERVE BANK of India (RBI), in its maiden Monetary Policy Committee (MPC) meeting of financial year 2024-25, kept the repo rate unchanged at 6.5% as it sought to maintain its focus on strengthening the economy. This is the seventh consecutive policy meeting where it has chosen to keep the policy repo rate unchanged. That’s because it is treading cautiously since retail inflation has remained above its 4% target, though it was well within the 2% margin at 5.09% in February. Besides, it is also keeping an eye out on the geopolitical tensions in the Middle East. Inflation was the ‘elephant in the room’ two years ago, RBI Governor Shaktikanta Das said at the post-policy press conference on April 5. “The elephant has now gone out for a walk and…

PB FINTECH—THE parent company of Policybazaar and Paisabazaar—turned profitable for the first time in Q3FY24. It reported a consolidated net profit of ₹38 crore, compared to a loss of ₹87 crore in the year-ago period and a loss of around ₹20 crore in the previous quarter. Yashish Dahiya, Chairman & CEO of PB Fintech, talks to Business Today about Policybazaar’s idea of growth, importance of back-end integration, and more. Edited excerpts: How has FY24 been so far in terms of growth and profitability? We’re exceeding expectations in terms of growth, maybe by about 10%. Profit is just a by-product for us, but it’s pretty much on expected lines and is on track. Our focus is 80% on growth, knowing that profit follows. I think if you have growth, profit will…

Tech geeks, Luv Malik and Kush Malik, gifted with the talent to discern 'Luxury' in electronic gadgets, partnered to established 'Luxury Personified' in 2015, New Delhi, to cater to the niche customers' indulgence of possessing top global electronic gadgets. As India's pioneering distributors and marketers of the world's most exclusive electronics brands, Luxury Personified, offers unparalleled experiences with products offerings embedded with cutting-edged technology. 'Luxury Personified' ventured into the luxury electronics industry with the simple motive of introducing remarkable luxury audio products in India. Over the years, the company has evolved into an international growth accelerator and distributor for premium lifestyle electronics, supporting renowned brands such as Marshall, Devialet, Sonos, Bang & Olufsen, GoPro, Jlab, Hurom, Therabody, Adidas, Urbanears, Shokz, and Dyson, and still counting. Through their strategic development and…

ARTIFICIAL INTELLIGENCE (AI) is finally coming of age in India. We already have a large, technology-savvy young population working in various fields of digital technology, both in services and products. According to industry body Nasscom, over 1.5 million engineers graduate annually. The IT industry alone employs almost 5.5 million engineers directly. India is the second-largest generator of digital data, only behind China. It is the fifth-largest economy in the world today and one of the biggest markets for any technology, both in business and customer applications. The country ranks among the biggest markets for almost all big tech firms. The Union government’s Digital India initiative and the robust IndiaAI Mission plan, combined with the impetus to semiconductor manufacturing through the PLI scheme, has put in place the key building blocks.…

SOARING ASSETS Assets under management (AUM) of the PMS industry have expanded at a compound annual growth rate of 20% since FY15 FIGURES DO NOT INCLUDE EPFO/PF ASSETS; *DATA AS OF JANUARY 2024 SOURCE SEBI TRANSITION OF WEALTH Rising incomes will boost appetite for PMS products as the proportion of households earning more increases *ESTIMATES SOURCE SUNDARAM ALTERNATES REPORT 351 NUMBER OF PMS SCHEMES CURRENTLY TRACKED BY PMS BAZAAR; THIS INCLUDES CATEGORIES SUCH AS EQUITIES, DEBT, HYBRID, AND MULTI-ASSETS 38% EXPECTED RISE IN GLOBAL WEALTH OVER THE NEXT FIVE YEARS, REACHING $629 TRILLION BY 2027, PER LATEST GLOBAL WEALTH REPORT BY CREDIT SUISSE AND UBS $24 trillion EXPECTED SIZE OF THE GLOBAL ALTERNATIVE ASSET INDUSTRY BY 2028 COMPARED TO $15 TRILLION IN 2022, PER SUNDARAM ALTERNATES REPORT TOP MONEY MANAGERS The Top 10…

WHILE THE WORLD combats tremendous volatility, the Indian economy remains relatively better-placed than other emerging markets and global economies, but is not entirely insulated from the impact of global headwinds. The health of the financial system remains robust, and it is well-capitalised, showing improvement in asset quality and balance sheets, with banks returning to profitability. In this transformational journey, India’s banking sector is undergoing continual change as it seeks to maintain sustainable growth and address gaps. Against this backdrop, the Business Today Banking & Economy Summit brought together policymakers and regulators, senior executives of the banking and financial services sector, fintech companies, big tech companies, aggregators etc. to discuss some of the key trends and issues related to the evolving business and operating environment in the industry. At the event,…