Episodit
-
Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Wednesday, April 24, 2024. My name is Nelson John. Let's get started:
Indian benchmark indices continued their momentum on Tuesday to close in the green for a third straight session. BSE’s Sensex closed 0.12 per cent above its previous close while NSE’s Nifty too ended the day up 0.14 per cent.
Are Indians changing the way they travel? It certainly seems so, given the surge in air travel. On April 21, a record-breaking number of over 470,000 passengers flew across India, surpassing last year's record on April 30. India, already the third-largest aviation market after the U.S. and China, has witnessed a remarkable growth in air traffic, more than doubling over the past decade. Experts suggest this boom is fueled by increasing incomes, competitive pricing of airfares, and the untapped potential of first-time flyers. Mint’s aviation correspondent Anu Sharma explores what's driving this shift, the impact on airlines, and the challenges that could temper this rising trend.
The conversation around lowering the extra charges on hybrid vehicles is stuck in a bit of a limbo. People close to the development told Mint’s autos correspondent Alisha Sachdev that despite backing from the ministry of commerce and transportation, no real movement is possible without a bigger shake-up of the overall tax system. Right now, hybrids get slapped with a hefty 43 per cent tax, while electric vehicles cruise by with just a 5 per cent GST, thanks to policies aimed at cleaning up transportation. But not everyone's on board with making hybrids more attractive—major local car makers, led by Tata Motors, argue that cutting taxes on hybrids could slow down the electric vehicle revolution. Amid all this, there's a growing anxiety within the auto industry about what future tax rates might look like for electric vehicles as they become more common. Will the current low rates hold as EVs grab a larger market share?
The scorching heat wave sweeping across East and South India isn't letting up anytime soon. The India Meteorological Department has issued a heads-up that we’re in for another five gruelling days of high temperatures. This heat wave is hitting just as voters in states including West Bengal, Uttar Pradesh, Karnataka, Kerala, and Bihar gear up for the second phase of the Lok Sabha election this Friday. IMD has predicted a particularly harsh summer with the possibility of extended heat wave conditions lasting anywhere from 10 to 20 days. An orange alert is out for regions like Odisha, Bihar, and Gangetic West Bengal, signalling moderate health risks, especially for the more vulnerable groups like the elderly or those with chronic health issues. Mint’s Puja Das reports on the met department’s predictions for the upcoming weeks.
The Supreme Court of India has widened its lens in the Patanjali case to include all fast-moving consumer goods (FMCG) companies, particularly those peddling health products with potentially misleading ads. This expansion follows a complaint by the Indian Medical Association against Patanjali for its controversial advertising tactics. The court has now asked several key ministries to step up and monitor these companies more closely, ensuring they aren't misleading especially vulnerable groups like children and the elderly. This could potentially reshape advertising norms in India, as the industry heavily invests in advertising, with FMCG companies being the largest spenders. Mint’s consumer correspondent Suneera Tandon reports on the crucial development that could shape the future of advertising in India.
One of India’s biggest conglomerates - the Adani Group - is omnipresent in sectors across the country’s industrial landscape. Now Adani Properties, a part of the conglomerate, is making strides in the country’s real estate sector. The company won the bid to redevelop Mumbai’s Dharavi, also known as Asia’s largest slum settlement. It won the redevelopment bid in November 2022 with an offer of 5,069 crore rupees. The area, in the heart of India’s financial capital, is home to about a million people. Group chairman Gautam Adani has in the past expressed deep personal commitment to the redevelopment of Dharavi. The project aims to resettle Dharavikars and transform the area into a prime real estate location, potentially elevating Adani Properties to a major player in the real estate sector. The company, which ventured into real estate under the Adani Realty brand about 14 years ago, has expanded significantly, with projects across Mumbai, Pune, Ahmedabad, and the Delhi-NCR region, totaling 200 million sq.ft. in various stages of development. Mint’s Madhurima Nandy takes a deep dive into the operations and projects of Adani Properties, and the conglomerate’s other real estate businesses, for today’s Long Story.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
Show notes:
Up, up and away: the implications of India’s soaring demand for air travel
Hybrid cars must haul the cess load for longer
Severe heat wave likely in East & South India until Saturday ahead of phase 2 poll
Patanjali ads cast a long shadow over FMCG sector
From Shantigram to Dharavi: How the rise of Adani’s realty play threatens DLF
-
Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Tuesday, April 23, 2024. My name is Nelson John. Let's get started:
The Indian equity markets bounced back on Monday. Benchmark indices Sensex and Nifty both rose by about 0.8 percent.
The country's largest conglomerate, Reliance Industries, filed its earnings report yesterday. While profits were down quarter-on-quarter, overall profit increased 4 percent in FY24, as compared to the previous financial year. The oil and chemicals giant reported a dividend of 10 rupees per share. Reliance Retail and Jio also reported their earnings yesterday, recording steady growth. Since the results were declared after the market closed, RIL's stock didn't record any significant change owing to the results.
Let's move to another oil conglomerate, this time from across the Arabian Sea: I'm talking about Aramco, Saudi Arabia's state-owned oil refining company. Aramco's venture capital arm is interested in the Indian startup sector, and is willing to bet on it. Sneha Shah reports that this arm, named Prosperity7 Ventures, is looking to set aside around two to three hundred million dollars to invest in early-stage Indian startups. It plans on spreading that amount across nearly two dozen companies, Sneha writes. Prosperity7 has a portfolio worth about 3 billion dollars worldwide, and wants India to be the home for its next set of investments.
You can't talk about conglomerates without talking about the Adani Group. Last year, the group bought a majority stake in infrastructure behemoth Ambuja Cements, and has slowly increased its share in the company. But the plan doesn't stop there, writes Anirudh Laskar: Ambuja is planning a series of acquisitions to overtake Ultratech as the country's number 1 cement company. A capital expenditure of over 9 billion dollars is in the works, Anirudh reports. This would take Ambuja's annual production capacity to at least 180 million tonnes, from about 80 million tonnes now. But Ultratech too has plans to add to its current capacity of 151.6 million tonnes a year. The Adani group has lots to catch up, at least in the cement sector.
Metro cities are full of e-commerce deliveries constantly in action: vans, scooters, and even trucks fulfilling orders round the clock. But e-commerce hasn't penetrated as much into India's hinterlands. That is now changing, writes Priyamvada C. E-retailers like Rozana and Floryo are targeting customers in tier 2 cities and beyond, where customers are increasingly ready to pay more for products but unwilling to compromise on quality. These e-tailers are also attracting enough money from investors to become viable businesses, Priyamvada writes. She also spoke to executives from venture capital funds to assess the scope of startups that operate primarily in such markets.
Election campaigns are in full flow. In most corners of the country, voters will be choosing between national or state parties. But very rarely will there be a viable independent candidate. Barmer, a desert-laden district in Rajasthan, might just have that. Sayantan Bera profiles Ravindra Singh Bhati, an independent candidate fighting for the seat of Barmer. He seems to be incredibly popular, and at 26, is one of the youngest candidates across the country. Bhati's popularity seems to be credited to his social media presence. On instagram, he has more followers than Barmer has eligible voters. Sayantan writes about how Bhati's campaign is developing, how caste politics are in play again, and asks the crucial question: will this show and dance translate to actual votes come elections?
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
We'll be back tomorrow with a fresh episode of Top of the Morning. Have a nice weekend!
Show notes:
Oil fuels RIL’s Q4 show
Aramco’s VC arm in talks for India team
Battle to cement leadership hots up between Adani’s Ambuja and Birla’s UltraTech
The rise of tier-2 online shoppers: Can they change Indian e-commerce?
In desert country, a 26-yr-old ‘reel neta’ rises to challenge BJP, Congress
-
Puuttuva jakso?
-
Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Monday, April 22, 2024. My name is Nelson John. Let's get started:
The earnings season is in full swing for India’s 245 billion dollar IT industry. Over the last couple of weeks Indian IT giants like TCS, Infosys and Wipro announced their quarterly earnings for the last quarter of FY24. But what about the future of the industry that employs close to 5.4 million Indians? Recent deal wins and Gartner’s forecast have painted a pretty optimistic picture for the IT sector's future. For instance, Infosys just announced its highest-ever annual contract value at $17.7 billion for FY24, and it’s not just Infosys riding this wave. Wipro and TCS have also reported strong order books, with TCS raking in a whopping $13.2 billion in the last quarter alone. They’re all betting on better times post the upcoming US presidential elections, expecting a boost in client spending. Mint’s Shelley Singh takes a look at what the future could look like for the Indian IT industry amidst a rapidly declining workforce. Top three companies in the sector - TCS, Infy and Wipro saw a deduction of more than 64,000 in their workforce.
Chocolates are about to get pricier and it’s not just regular inflation at work. Cocoa prices have shot up recently, and not just by a little. Crop failures in big cocoa-producing countries like Ivory Coast and Ghana, have sent cocoa prices up by 133 per cent since last June! Behind this failure is climate change, adverse weather and a crop disease that affects the root of the cocoa tree. India too is set to feel the pinch. This story by howindialives.com breaks down the bitter truth unfolding in the chocolate industry. Even though we grew about 30,000 tonnes of cocoa in 2022-2023, it wasn't enough to keep up with our chocolate cravings. We had to import close to 1 lakh tonnes of cocoa products like beans, butter, and powder last year, and with global prices on the rise, our costs have soared as well. This price hike might cool down later this year if the crop yields improve, but it’s not just about the weather. The cocoa market has some deep-rooted issues. Most cocoa farmers are barely scraping by, earning much less than what their valuable crops should bring in.
India’s tech epicentre and the internet’s favourite city Bengaluru lately has been in the news for all the wrong reasons. Be it the soaring temperatures in a city otherwise famous for its “air conditioned” weather or the severe water crisis it’s been going through for the past couple of months. Amidst the empty tanks and drying lakes one has to ask whether the city’s companies are using its water judiciously. An analysis of Bengaluru-based top BSE-listed firms reveals an 11% spike in water usage in the last year, signalling the severity of the situation. 56 of the top 1000 listed companies on BSE are headquartered in Bengaluru. Only 45 had usable data, showing a collective water consumption increase to 33.3 million kiloliters in the fiscal year 2022-23. Notably, public sector companies saw a modest 2.2 per cent rise, while private sector firms ramped up their water usage by 21 per cent. Mint’s senior associate editor and data journalist Niti Kiran breaks down the water consumption pattern of each industry in Bengaluru Niti also takes a look at their water management practices.
Taylor Swift - the pop culture phenomenon had a terrific 2023, ending the year as the TIME magazine’s person of the year. This year too the pop juggernaut of Taylor Swift - with millions of “Swifties” behind her - doesn't seem to be slowing down. This next story, however, is not about her music. Taylor’s Eras Tour in Singapore not only dazzled fans but also showcased the innovative use of 5G technology, according to Per Narvinger, Ericsson's Senior Vice President for Cloud Software and Services. At the heart of this tech integration was Singtel's 7 dollar worth 5G Express Pass, which offered fans high-speed data priority to stream and share the event. This service highlights a burgeoning opportunity to monetize 5G technologies through network slicing, which allows for dedicated broadband bandwidth tailored to specific events and needs without additional infrastructure. Network slicing is akin to a toll highway for data, offering a premium path separate from regular traffic. This technology is not yet widespread globally, but India, with its rapidly expanding 5G infrastructure, stands to benefit significantly. Mint’s telecom correspondent Gulveen Aulakh reports on this path breaking phenomenon and how a Taylor Swift concert proved helpful in testing it out.
What can 70,000 rupees get you? In some cities, it's enough for a month’s rent in a decent apartment. But if you're eyeing a night at some of India's posh resorts like AmanBagh in Rajasthan or BrijRama Palace in Varanasi, that same amount might just cover one night, especially during peak season. Yeah, the pandemic has really changed the game for hotel pricing, sending rates sky-high. The luxury hotel scene has been on a roll, with domestic tourism fuelling a surge in demand. Mint’s Varuni Khosla spoke to several hospitality industry insiders, who noted that the travel patterns have shifted, with Indians now opting for more frequent short stays rather than the occasional long vacation. This change has undoubtedly played a role in the climbing rates. Rating agencies such as Crisil and CareEdge, predict that the hotel industry is in for a few good years, with steady revenue growth thanks to robust domestic demand and a gradual uptick from international visitors. The scene is set for a continued boom, with minimal new hotels opening up, which just tightens the supply further.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
Mint Primer | Let the good times roll: IT services eye a better future
The bitter truth unfolding in chocolates industry
Bengaluru water crisis: Firms gulp more but also pledge to reduce usage
Silent Symphony: Taylor Swift’s cryptic 5G tale
Scent of growth for Indian hotels as the good times check in
-
Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Friday, April 19, 2024. My name is Nelson John. Let's get started:
Markets continued to fall for the third consecutive trading session. Benchmark indices Sensex and Nifty both fell by about 0.6 percent.
Markets aren't likely to be any better tomorrow, if the annual results for Infosys are anything to go by. Infosys reported that revenue increased by only 1.4 percent over the previous financial year. FY2025 doesn't look much better either: revenue is likely to grow less than 3 percent. Analysts remain disappointed, write Shouvik Das and Jas Bardia. Marginal increase in revenue, lower profits, and poor future projections: the situation is not kind for Infosys right now
Let's talk about Infy's rival, TCS. India's largest IT company is now assessing in-office attendance as part of its appraisal system. Jas Bardia reports that TCS employees who attended office regularly received much better annual pay hikes than their colleagues who chose to work from home frequently. An executive from TCS told Jas that the IT giant has been nudging its employees to come to office regularly for more than 15 months. That led to a directive in January, where everyone was asked to come to the office all five working days of the week. Those who chose to ignore that notice are now facing the consequences.
In most parts of India, summer came early — and it seems, is here to stay. But the weather department's prediction of a bountiful monsoon season provides some much-needed hope. Of course, the IMD's weather predictions have often been mocked for being wrong. Sayantan Bera explains this year's prediction in his primer. A healthy monsoon would provide relief to India's sluggish farm economy and poor rural consumption. Equal distribution of rains is more important than the quantity of rainfall, Sayantan writes. That would help in reducing food inflation too.
Foxtrot nuts are touted as a healthy alternative for snacks like chips. Now, they are being sold the world over, but closer to home, we might recognise them as makhana . Believe it or not, these white, fun to eat pops actually originate in muddy waters. About one lakh families from Bihar are the only ones engaged in the farming and harvesting of the foxtrot nut, writes Alisha Sachdev. But, makhana could emerge as the next big thing in India's 20 billion dollar snacking industry. Makhana goes up against millets in the health foods category, but is already bigger than the pulse in terms of sales. As more FMCG companies venture into selling makhana, industrial processing might soon propel it in everyone's kitchens as a healthy snack to have with your evening tea.
Baahubali, KGF, and RRR had Indian audiences flocking to a movie theatre to watch vernacular movies. But the filmmakers of these movies chose to dub it in Hindi, English, and other languages, making it an easier sell. However, Manjummel Boys, a Malayalam movie, is now bucking that trend: it recently grossed more than 200 crore rupees. The makers of this movie chose not to dub it in any other language. Manjummel Boys is part of a slew of low-budget movies from southern India that are doing well, despite little or no dubbing, writes Lata Jha. Earlier, such movies rarely got a pan-India release unless they starred huge stars like Rajnikanth or Ram Charan. With the success of these movies, perhaps a good story wins over any language barriers.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
That’s all for today. Thank you for listening.
We'll be back next week with a fresh episode of Top of the Morning. Have a nice weekend!
Show notes:
Infosys projects bleak market to continue this year with paltry growth guidance
Not been regular to the office? Here’s what India’s largest IT company did
The 2024 monsoon forecast has a hidden warning
Made in Bihar: How superfood makhana works its magic
Manjummel Boys sets a new trend for southern films: mega success at home
-
Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Thursday, April 18, 2024. My name is Nelson John. Let's get started:
The ruling Bharatiya Janata Party released its manifesto last week. While most of the promises are pretty boilerplate for an incumbent party, the civil aviation sector gets some outsized attention. These promises include setting up of a commercial aircraft manufacturing centre, and turning India into an aviation hub. That would mean convincing foreign airlines to have layovers in India, en route to global destinations. Mint Snapview argues that some of these promises might be foolhardy and mistimed. India needs to make a lot of advancements across the board for this to happen. Economic feasibility and logistical issues are plenty in India, which prove to be detrimental to any such projects. For the BJP to make good on these promises, these challenges need to be addressed first — lest they end up like most hollow poll promises.
The BJP has another, Tamil Nadu-sized challenge for the upcoming elections. Five years ago, Prime Minister Narendra Modi was viewed in the southern state as anti-Tamil. Contrast that to his campaigns in the region today, which are attended by no less than 10,000 voters. BJP is doing its best to garner support from the Dravidian heartland. They are targeting young and first-time voters, writes N. Madhavan. He writes that for the first time in decades, a national party is now a serious challenger in the electoral landscape. Madhavan writes about the history of Tamil Nadu's rich history of regional parties, the politicking, and how the BJP fits in the picture in 2024. In the last couple of months, Modi has visited the state eight times — and the campaigning is making a stark difference among voters, Madhavan reports.
At 83.5, the rupee has reached a new low against the US dollar. While this makes exports more lucrative, imports now turn dearer. Geopolitical instability across Europe and the Middle East has lowered the prospect of the US Federal Reserve cutting its interest rates. Since India is a net importer of goods, a falling currency is not a good sign, writes Sumant Banerji. However, fret not: the Reserve Bank of India is likely to intervene to arrest any further sliding of the rupee, Sumant adds.
In the 1960s, the space race between the US and the Soviet Union was in full flow. That led to a lot of advancements in the sector. In the present day, startups and private companies are now taking further strides towards outer space. Elon Musk's SpaceX has taken full advantage of that opportunity, making multiple efforts to launch their own rockets into space. Musk is visiting India soon, and some Indian aerospace startups have the opportunity to pick his brain about SpaceX. Shouvik Das reports that at least three Indian startups working in the space sector have been invited to meet Musk on 22 April. The meeting is not likely to provide business opportunities and is more to show Musk the strides that India has made in the sector, Shouvik writes.
Does your investment portfolio include Bitcoin, ethereum, or dogecoins? Don't worry if not — these are all different types of crypto currencies. If you've heard of them and still haven't invested, it's understandable: since they are decentralised, crypto currencies are volatile by nature. Take bitcoin for example: it reached its lifetime high of 73,780 dollars last month, but has fallen 7 percent since then. Crypto, often referred to as ‘the Wild West of investing, makes for a very interesting option, and some Indians aren't afraid of dipping their toes despite the risks. Mint money's Anil Poste speaks to H-O-D-L-ers, who are holding on for dear life and investing more money into crypto, despite the roller coaster valuations, tax concerns, and regulatory uncertainties.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
That’s all for today. Thank you for listening.
We'll be back tomorrow with a fresh episode of Top of the Morning. Have a nice day!
Show notes:
The one thing that stands out in BJP’s manifesto is aviation. Can promises fly?
In Tamil Nadu, BJP’s final frontier, a high-stakes battle
How the rupee’s fall can impact the economy and what RBI can do about it
Can Indian space startups wow Musk with indigenous tech?
What drives crypto HODLers despite volatility, uncertain regulations, high taxes
-
Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Wednesday, April 17, 2024. My name is Nelson John. Let's get started:
Indian benchmark indices fell for the third consecutive session on Tuesday, influenced by negative cues from global markets which are currently under pressure due to geopolitical tensions in the Middle East. The Sensex closed down 0.62 per cent, while the Nifty ended the session 0.56 per cent lower.
Shaktikanta Das, the Reserve Bank of India - India’s highest monetary authority - has recently flagged concerns about unauthorised forex trading platforms, urging banks to keep a sharp eye on them. This has sparked a broader discussion about the need for tighter regulation in India's forex market. These platforms are where most foreign exchange transactions happen. They are primarily used by businesses like importers and exporters to manage their currency risks. These trades usually happen on Over-the-Counter platforms authorised by the RBI or through recognized exchange-traded segments of bourses. So what exactly is going on with forex trading platforms? And what has the RBI done about it? Mint’s banking editor Gopika Gopakumar tackles those questions in today’s Primer.
Smartphone companies in India finally have some good news. The scramble for smartphones in the country, triggered by Covid-19 lockdowns ebbed back as the world returned to normal. However, the March quarter has ignited some hope in the hearts of smartphone manufacturers. This past March quarter, smartphone shipments rose by 5% year-over-year to somewhere between 32.5 to 35 million units, according to data from four industry analysts. It’s a refreshing change, especially considering that back in the March quarter of 2021, shipments had peaked at 38 million units. Since then, there's been a bit of a slump. Mint’s technology correspondent Shouvik Das reports on this turnaround which is especially crucial for big players like Samsung, Xiaomi, and Vivo, who together made about $38.8 billion in sales in India last year. However, despite these positive signs, industry veterans are advising caution. The broader economic pressures still loom large, affecting consumer confidence. The market has also seen a shift toward refurbished and second-hand smartphones, thanks to the growth of organised retailers in this space.
India is gearing up for the third phase of its airport privatisation plan. More airports are expected to see private stakeholders after the upcoming election. Officials close to the matter told Mint’s aviation correspondent Anu Sharma of Airports Authority of India’s plans to sell off its remaining 13 per cent stake in Bangalore International Airport Ltd . But that’s not all — they're also planning to throw the doors open for private bids to manage, operate, and develop 13 other airports, including popular ones like Bhubaneswar, Trichy, Indore, Raipur, Amritsar, and Varanasi. There’s also talk of selling stakes in Hyderabad airport. The authorities are planning to bundle six profitable airports with seven smaller, not-so-profitable ones like Kushinagar, Gaya, Hubballi, Aurangabad, Jabalpur, Tirupati, and Kangra. This mix and match might just make the deal more attractive to potential investors. This push towards privatisation is part of a bigger picture - India’s National Monetisation Plan which was rolled out back in 2021. The plan is ambitious, aiming to privatise around 25 airports and offload airport authority’s shares in big metro airports like Delhi, Mumbai, Hyderabad, and Bangalore. The government is hoping to unlock 21,000 crore rupees from these sales between 2022 and 2025.
Mid-budget movies, which really felt the pinch through Covid, are suddenly back in the spotlight. Judging by the impressive box office numbers of films like Crew, Shaitaan, and Article 370 it looks like affordable ticket prices and clever marketing are paying off. Let’s talk numbers. The movie Crew, featuring stars like Tabu, Kareena Kapoor Khan, and Kriti Sanon, earned 77 crore rupees since its release at the end of March. Ajay Devgn’s horror thriller Shaitaan pulled in a cool 148 crore rupees from early March, and the political drama Article 370 isn’t far behind with 82 crore rupees since late February. Andthese films have all been profitable.
Even though the Hindi box office saw a 25 per cent dip year-on-year in the last quarter of FY24, small and medium-budget films are making a stronger showing than they have since the pandemic began. They’re now accounting for 30-35 per cent of box office receipts, up from just 12-15 per cent previously. Mint’s media and entertainment correspondent Lata Jha reports on the resurgence of mid-budget bollywood movies and the changing landscape of Indian cinema.
As tensions in West Asia heat up, there's a real concern that crude oil prices might just hit the roof, possibly soaring past $100 per barrel if things continue to escalate. This is a big deal not just globally, but especially for India's oil marketing companies, because hiking fuel prices during an election season is not a popular move. Now, high crude prices are already an issue for state-owned oil marketing companies because it squeezes the marketing margins – which is the difference between what it costs to make petrol or diesel and what they sell it for. Right now, those margins are pretty thin, about 5 rupees per litre for petrol and barely a rupee for diesel. If crude prices shoot up, these margins could get even tighter. Mint’s energy correspondent Rituraj Baruah spoke to industry insiders and analysts to break down the ongoing problem for Indian oil marketing companies.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
Show notes:
Dialling in hope: India's smartphone sales show signs of recovery
Airport privatization 3.0: Here are the 13 candidates
Mint Primer: Decoding RBI’s alert on illegal forex platforms
Mid-budget movies punch above their weight at the box office
Keeping fuel prices steady during turmoil comes with a price
-
Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Tuesday, April 16, 2024. My name is Nelson John. Let's get started:
Indian stock markets fell by over one per cent for the second consecutive day on Monday, weighed down by rising tensions in the Middle East and resulting negative investor sentiment.
India is in for some good news, especially for our farmers. After a tough year with less-than-ideal rain and the ongoing scorching summer, it looks like India is on track for a better-than-average monsoon season this year. The India Meteorological Department (IMD) anticipates that the fading El Niño – a weather phenomenon – will transition to neutral by June and possibly to La Niña conditions by late summer, promising higher rainfall. This could bump up our monsoon rainfall to 106% of the long-term average of 87 cm, which is above normal. This forecast is a relief considering the dry spell last year linked to El Niño, which reduced rainfall by 6% and nudged up inflation. Historically, when La Niña follows El Niño, India tends to see more rain. However, this could also result in uneven distribution of rainfall, meaning floods in some places. Mint’s Puja Das and Arshdeep Kaur report on the latest IMD forecasts.
Tata Electronics has sealed a deal with Elon Musk’s EV manufacturer Tesla to produce crucial components for the car company. This partnership marks a significant boost for Tata in the electronics manufacturing space. The Tata Group company is also gearing up to set up a new facility dedicated to crafting essential parts like printed circuit board assemblies for Tesla vehicles. Interestingly, Tesla decided to go with Tata Electronics over its usual global partners like Foxconn and Jabil Inc. This choice seems to hinge on a couple of key factors: Tata’s aggressive expansion in semiconductor fabrication and its strong stance in securing government incentives in India. This strategy is a win for Tesla too, as it aligns with Indian policies that lower import duties for EV makers ramping up local production. These policies require that EVs achieve 50% local sourcing within five years to enjoy these benefits. Mint’s autos correspondent Alisha Sachdev reports on a development crucial for India’s EV and manufacturing landscape.
Once the most valued Indian startup, Byju’s is going through its most turbulent phase yet. Now, another exit has shook the edtech company. Arjun Mohan stepped down as CEO of Byju's India after just seven months, handing the reins back to the company's founder, Byju Raveendran. Initially brought in to cut costs and reorganise operations, Mohan leaves behind a business that's noticeably scaled back. It's been a rough patch for Byju's, especially during the January-March quarter, which usually sees the bulk of its sales. However, this period turned out to be one of its worst, company insiders told Mint’s startup correspondents Priyamvada C and Sneha Shah. Debt has been a major issue. Reports suggest that Byju's debt has climbed to more than 200 million dollars in India and another 200-250 million dollars in the U.S. The company is also supposed to pay 40 million dollars quarterly to bondholders—a commitment that has sparked a legal battle as Byju's disputes these claims. However, an executive close to Raveendran told Priyamvada and Sneha that the debts are much lower and that the recent fundraising efforts should cover most of what they owe.
The geopolitical situation in West Asia is volatile again. After Iran’s drone attack on Israel, the region is on the brink of a war. And when West Asia - a part of the Middle East - sneezes, economies around the world become prone to catching a cold. That is because of the fossil fuel reserves the area sits on. Rising tensions in the region could spell trouble for the Indian economy, with analysts warning that geopolitical uncertainties might drive up energy and commodity prices. This could fuel inflation and increase the government's spending on fertiliser subsidies, which could force the government to rethink some of its budget plans after the elections. In the budget laid out in February, Finance Minister Nirmala Sitharaman planned for a 13 per cent cut in fertiliser subsidies and a 5 per cent increase in excise duty collections from the petroleum sector. But with oil prices creeping up towards 90 dollars a barrel—and possibly hitting the 100 dollar mark soon—those numbers might need a second look. Higher oil prices mean India's import bill could balloon, given it imports about 85 per cent of its energy needs. Mint’s senior editor Gireesh Chandra Prasad and energy correspondent Rituraj Baruah explore the consequences of the ongoing conflict in West Asia, for the Indian economy and for the government’s promises in its interim budget.
In the early 1960s, India was in search of its national bird. Renowned ornithologist, the late Salim Ali, championed the Great Indian Bustard, a towering bird reminiscent of an ostrich, commonly found in the arid regions of Rajasthan and Gujarat. However, due to concerns about potential misspellings of its name, the government ultimately chose the peacock as the national bird in 1963. Fast forward nearly six decades, and the Great Indian Bustard is now facing extinction , primarily due to the expansion of India's renewable energy sector. The bird's natural desert habitat overlaps significantly with areas being used for wind and solar energy projects—energy sources that are pivotal in India's efforts to reduce its dependence on fossil fuels.
In the past decade, the desert has been crisscrossed with countless kilometres of high and low tension overhead wires needed to transmit power from renewable sources. Unfortunately, these wires have become death traps for the bustard and other avian species, leading to numerous collisions. Mint’s Sumant Banerji writes about the dwindling numbers of the bustard and also talks about the ongoing legal battle to save one of India’s most iconic bird species, in today’s Long Story. Ironically, the future of these majestic birds hangs in a delicate balance against the backdrop of India's push for a diversified energy future.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
Show notes:
IMD forecasts above-normal monsoon this year as El Nino flips over
Musk taps Tata Electronics to make electronics parts for India-made Teslas
Byju's India CEO Arjun Mohan steps down after just seven months
Will a West Asia conflict ruin the interim budget math?
100 bustards and the challenge to India’s solar flight path
-
Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Monday, April 15, 2024. My name is Nelson John. Let's get started:
There's a reason why central banks and prominent investors take notice when the price of gold moves significantly in either direction: its track record as the flagbearer of wealth stretches for over 5,000 years. As of last week, gold prices have hit lifetime record highs. Rising geopolitical tensions and a possible rate cut by the US Federal Reserve keep pushing the yellow metal to new highs. But despite much of the fighting going on in the Middle East, India and China contribute to over half of the global gold demand. Traditionally, the price of gold has had an inverse relationship with the equity markets, writes Abhishek Mukherjee. But that seems to have changed in the present day, when both gold and stock market valuations are taking off. Abhishek spoke to market experts and analysts, who pointed towards an increase in the volume of trading across the board. This, combined with most central banks around the world stocking up on gold, has led to a parallel surge. Will this trend continue? Experts, as always, ask you to exercise immense caution.
While geopolitical tensions have been high over the last few years, we haven't seen many direct attacks across borders. That changed on Saturday, when Iran launched missiles at Israel. This was in response to a bombing of Iran's consulate in Damascus, Syria, ostensibly by Israeli forces. If Israel chooses to respond in kind, we might be at the cusp of a global war, writes N. Madhavan. Immediately, oil prices are likely to be affected: the cost of a barrel of oil had already crossed 90 dollars last week, a six-month high. An all-out war will cause huge disruption in oil, gas, and logistical supply chains. This is especially bad news for India, where inflation is just about cooling and industrial production is ramping up.
The Tata Group has a reputation of never firing any employee, unless they're found guilty of sharing sensitive information or indulging in corruption. This is even more impressive when you consider the sheer volume of people they hire every year. But that is now changing: take the group's crown jewel, Tata Consultancy Services. TCS isn't rushing to fill the roles that have turned vacant after people leave the IT giant. This resulted in TCS having a lower headcount at the end of the financial year 2024 than when it started, report Jas Bardia, Varun Sood, and Devina Sengupta. This was a first since the company listed on the public markets 20 years ago. Historically, TCS's headcount and its revenue had a proportional relationship: revenue would grow with headcount, and lower with more headcounts. Some industry executives are of the view that as artificial intelligence becomes more useful in replacing roles. However, TCS has brushed aside any concerns of AI replacing human roles at the company.
When most companies announce that they have introduced AI into their workflow, it usually means that they have integrated a version of AI already available in the market and customised it slightly. That isn't true for Navi, the financial services company founded by Sachin Bansal. Bansal is also the co-founder of e-commerce behemoth Flipkart. Navi is building large language models in-house at Navi. In an interview with Leslie D'Monte, Bansal admitted that choosing this route slows down the development and shipping of new features, it allows the company unmatched flexibility. In his endeavour to create a more customer-friendly banking and financial experiment, Bansal said these steps would help simplify the process that currently ails millions of people trying to access their own funds right now. Next steps? Directing bots to drive sales, which would allow someone to take a loan simply via a WhatsApp conversation.
The Indian Premier League isn't just a battle between two teams playing cricket: it's also an advertising showdown between brands vying for your attention. Varuni Khosla writes that online gaming companies and fintechs are the most prolific advertisers. By virtue of being the title sponsor of the entire league, Tata is also relentless in promoting its electric vehicles and super app named Tata Neu . The reported cost for a 10-second slot on Star Sports is 12.5 lakh rupees, while Jio Cinema charges 200 rupees per thousand impressions on its app. Advertisers are spread across 55 categories, a 65 percent increase from the previous year's edition.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
Show notes:
What gold’s new playbook is telling equity investors
Iran-Israel flare-up: What does it mean for India?
What the vacant seats at TCS mean
Why Sachin Bansal can’t resist building tech in-house to boost Navi's fortunes
Brands battle for mindspace as cricket carnival kicks off
-
Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Friday, April 12, 2024. My name is Nelson John. Let's get started:
Indian markets ended Thursday on a robust note with the benchmark indices Nifty and Sensex both ending the day in the green. Touching an all time high of 22,775 points, Nifty closed just 22 points below it, up 0.49 per cent from its previous close. Sensex too closed on a higher note, up 0.47 per cent from its previous close.
Equity trading at record levels, which has been going on for some months now, may soon hit its peak. Fresh data from the National Stock Exchange shows that retail investors as well as high net-worth investors have turned bearish on index futures amid rising geopolitical tensions in the Middle East. This group of investors became net sellers of more than 16,000 Nifty and Bank Nifty futures contracts, after the NSE index hit a fresh high on Thursday. Mint’s markets correspondent Ram Sahgal reports on the significant shift in sentiment from this group of investors. This comes after 84 days of bullish stance from the group of investors referred to as ‘Client’ by the NSE. Historically, the positioning of clients in index futures has been a reliable indicator of market tops or bottoms. When these positions turn light or negative, it often signals a market peak, while a substantial increase in bets typically indicates a market bottom.
Generative AI - buzzword of the decade - is still a concept people are trying hard to grasp. It is important that people understand what generative artificial intelligence is. But it is even more crucial for lawmakers of the world to have a good understanding of the concept because laws around Gen AI will shape the technology’s future. One such law that could prove to be crucial for AI’s future has been tabled in the US Congress. The proposed “Generative AI Copyright Disclosure Act, 2024”, introduced by US Congressman Adam Schiff, addresses growing concerns over the fair use of copyrighted materials in the development of AI models. So what does the bill propose to do? This bill mandates that tech firms like OpenAI, Microsoft, Google, and Meta, which have developed large AI models trained on vast amounts of data, disclose the use of any copyrighted data in their training datasets. So what does the bill mean for innovation in AI? If passed, will it set a precedent? Will AI models be able to train themselves on copyrighted work? Mint’s Shouvik Das tackles these questions in today’s Primer.
It hasn't been smooth sailing lately for Tata Group’s Vistara. The airline has been seeing some turbulence after it had to ground 30 to 50 flights a day with pilots calling in sick as a protest against an imminent cut in their salaries. The carrier even blamed botched up rostering for the delays and cancellations. Now the airline’s CEO, Vinod Kannan, has addressed the airline's recent operational challenges in a reassuring message to employees. Kannan emphasised that the difficult period marked by flight cancellations and scheduling disruptions is now in the past. The troubles, as Kannan explains, were a mix of things out of their control like air traffic delays, some unexpected bird encounters, and maintenance that just had to be done. These hiccups threw a wrench into their finely tuned schedules and, with pilot rosters already maxed out, it was tough to keep everything running smoothly. Mint’s aviation correspondent Anu Sharma reports on the latest development surrounding Vistara’s struggle to keep its flights on time and running smoothly.
In the run-up to the Lok Sabha elections, India’s political landscape is buzzing. Leaders of all political parties are out there campaigning, electioneering and asking for people’s support. The election, which is planned to be conducted over seven phases, will kick off in exactly a week’s time. Uttarakhand happens to be one of the key states going to polls in the first phase on April 19. Amidst the ongoing Game of Thrones for 7 Lok Kalyan Marg, its incumbent, the ruling party’s star campaigner for over a decade and the nation’s Prime Minister Narendra Modi sat down for an interview with Hindi Hindustan’s editor-in-chief Shashi Shekhar. The prime minister seemed confident about returning for a third term. He listed out his government’s achievements during the course of the interview, with special focus on Uttarakhand, which is one of the states voting in the first phase. Modi talked about issues ranging from his government’s approach towards corruption to its stance on renewable energy. Perhaps unsurprisingly, the prime minister refuted any claims of an anti-incumbency wave in the country. He said his party has robust on-ground support.
Last week, Thierry Delaporte stepped down as the CEO of Bengaluru-based IT giant Wipro. To fill in his shoes, Srinivas Pallia was chosen. But Pallia isn't just any new CEO on the block; he's a seasoned Wipro veteran who's weathered the ups and downs of the company for 32 long years. However, as Pallia steps into the limelight, it won't be an easy road ahead for him. He faces a mammoth task of steering the company back to its former glory and reclaiming its spot among India’s top 3 IT companies, a position it lost to HCL in 2022. Wipro's recent years have been anything but smooth, with the company grappling to keep pace with its peers. Mint’s Shelley Singh spoke to critics and analysts, who echo this sentiment. According to many of them apart from the pandemic boom, Wipro has mostly lagged behind its peers. Adding to the challenge is the instability at the leadership level. More than 20 senior executives left under the watch of outgoing CEO Delaporte. This leadership instability is further underscored by the sheer number of CEOs Wipro has had since the year 2000—Pallia marks the eighth. Shelley takes a deep dive into the challenges awaiting Wipro’s new chief, for today’s Long Story.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
Show notes:
Futures flashing signal that market rally may be about to peak
Mint Primer | American AI bill: Is it a boon or bane for global innovation?
Worst is behind us, says Vistara CEO to employees as airline trims network
Just 3% of ED investigations related to people in politics: PM Narendra Modi
With Delaporte gone, can legacy hand Srinivas Pallia steer Wipro through the AI
-
Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Thursday, April 11, 2024. My name is Nelson John. Let's get started:
Indian equity markets edged higher on Wednesday. Nifty and Sensex increased by around half a percent each, with Sensex closing at more than 75,000. The markets will remain shut today on the occasion of Eid.
It's unusual for the stock market to be so bullish close to an election. Past election cycles have shown that the public markets deal with plenty of volatility and price corrections, as nervous traders choose to play safe. But market indices show that investors seem awfully calm this time around. They don't expect any large swings in the markets, and trading volumes have been robust, we argue in our special online-only premium segment, Mint SnapView. However, the current calm doesn't mean that it's going to stay this way: May and June might see some volatility, despite the bullish nature of the market at present. You might be playing the long game or short, but do continue reading Mint to understand the underlying sentiments of the markets as the runway to the general elections gets shorter.
Much of India's general election coverage is focused on Uttar Pradesh, and perhaps justifiably so: the state has the most number of seats for the Lok Sabha. But with 48 seats, Maharashtra is the next biggest. Voting should be quite interesting here too: voters are spoilt for choice. Apart from the household names, a host of regional political parties — including not one, but two Shiv Senas — are contesting the ballot. Mint's national writer Sayantan Bera visited Wardha and Nagpur, two cities in the heart of Maharashtra, to bring you an on-ground pulse of the region. Sayantan writes about the hot button issues, the mass confusion among turncoat candidates and the parties they represent, and speaks to locals about how they plan on voting, and why.
Life Insurance Corporation, the biggest insurer in India, has a market cap of over 6 trillion rupees. It invests a chunk of this money into other companies, often owning sizable shares of publicly traded companies. Due to its investing power, it often has a unique position among the board members. Anirudh Laskar and Niti Kiran team up to analyse these decisions, which paint an interesting picture: LIC has been an active cap table member in many of its invested companies. In the nine months ending December 2023, LIC had either outright rejected or abstained from nearly 10% of the proposals put forward to it. For more than 40% of the proposals it had rejected, LIC stated governance issues as a reason for its dissent. Most of these decisions were to do with appointment of directors, or their remuneration. The state-owned insurer is turning into a bit of an activist investor, data shows.
For a long, long time, VIP was the most prominent branded luggage maker in the Indian market. But then came the Samsons and the Tourists, and VIP couldn't keep up. With margins of only 9 percent, the Piramal family considered selling their business, but decided against it last year. The lack of consistency might also cost them: VIP has seen three managing directors in the last three years. Mint's Dipti Sharma and Ranjani Raghavan speak to Neetu Kashiramka on the newest MD's three-year plan to revive the business. Kashiramka remains grounded, and wants to improve margins in her tenure before the owners contemplate a stake sale again. Can VIP shed its excess baggage to be a fitter and slimmer company? Time will tell.
For fans of Bollywood, every major festival brought with itself a blockbuster movie release. The three Khans of the industry had divided release dates among themselves: Shah Rukh got Diwali, Salman got Eid, and Aamir got Christmas. But, the last few years have seen this order get jumbled. While this year's Eid is here, Salman isn't: and the film industry isn't happy. The lack of the Salman-Eid combo is likely to mute movie collections over this weekend, writes Mint's media and entertainment correspondent Lata Jha. She writes that box offices have seen around 30 percent less collection post Covid, as more people fire up OTT platforms and choose to watch movies from the comfort of their homes.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
That’s all for today. Thank you for listening.
We'll be back tomorrow with a fresh episode of Top of the Morning. Have a nice weekend!
Show notes:
Sensex at 75k: Why the bulls are unusually calm on the eve of an election
Cards, ludo and low wages: Tales from Maharashtra’s hinterland
LIC votes reveal governance fault lines at India Inc.
How VIP is trying to shed its baggage
When bhai goes missing in action, will Eid box office be the same?
-
Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Wednesday, April 10, 2024. My name is Nelson John. Let's get started:
Having opened at record highs on the back of bolstered expectations of a strong showing by companies during the last quarter of FY24, Indian benchmark indices pared most of their gains to close in the red on Tuesday. BSE’s Sensex closed 0.8 per cent down from its previous close, while Nifty dipped marginally by 0.1 per cent below its Monday close.
The last fiscal year was full of ups and downs for the Indian markets, but for one section of companies, FY24 proved to be the best one yet. Small and medium enterprises or SMEs took the Indian stock market by storm in the fiscal year ended March. A remarkable 204 SMEs launched their initial public offerings, raising close to 6,000 crore rupees. This marked a massive 167 per cent jump from previous years. Larger companies on the other hand, could only increase their IPO mop-up by a modest 20 per cent. Mint’s market correspondent Mayur Bhalerao writes about the surge which highlights the rising investor confidence in SMEs. Experts Mayur spoke to point at the rising interest for SMEs among high net worth individuals and retail investors .March 2024 alone saw 27 SMEs raise 862 crore rupees, setting a record for the highest number of SME IPOs since September 2023.
We are only in the second month of summer and the country is already struggling with severe heat waves. With heat waves comes scarcity of water. While water shortage in metros like Bengaluru makes a lot of noise in the public sphere, what goes under the radar are the depleting sources of water used by farmers. At a time when the government is trying to reign in food inflation, dwindling water reserves across the country are only going to make it worse for a number of crops. Experts are now predicting an increase in the prices of crucial winter crops like gram, paddy, and maize, due to drying up reservoirs. Water levels in India's 150 major reservoirs, as of last week, stood at 35 per cent capacity. This figure, as reported by the Central Water Commission, not only marks a 17 per cent decrease compared to the previous year but also falls 2 per cent below the decade's average. These agricultural hurdles are compounded by above-normal temperatures and diseases, particularly affecting states such as Karnataka, Andhra Pradesh, Telangana, and Tamil Nadu. Puja Das, who writes on agriculture and climate change for Mint, spoke to experts about the anticipated rise in the price of some key winter crops. Not all is grim though, experts predict that prices of other key winter crops such as wheat and mustard are expected to remain stable.
With over 960 million eligible voters and spanning seven phases over 45 days, the upcoming Lok Sabha elections are poised to be the largest democratic event in history. In an unprecedented move, to bolster participation in the elections, India Inc is taking it upon itself to encourage voters. Companies are taking innovative steps to ensure their workforce can exercise their voting rights. Leading the charge, firms like TCS, Amazon, KPMG, and Quess Corp are making it easier for employees to vote, even if it means travelling to their registered constituencies. KPMG India, for instance, is offering special leave to employees needing to travel for voting. Tata Sons is providing a day off for Mumbai-based employees to cast their votes. The IT sector - arguably one with a large number of migrant employees - is not behind in this, with HCL and TCS announcing leave policies around the polling schedule. TCS is even planning to let its employees travel to their constituency for voting. Mint’s HR and workplace correspondent Devina Sengupta reports on the widespread initiative, covering companies of all sizes and underscoring the commitment of India Inc to democratic participation.
Amid rising global crude oil prices, now surpassing 90 dollars per barrel due to fresh geopolitical tensions, India's domestic petrol and diesel prices are a focal point of speculation, especially with the election season upon us. The surge in Brent crude prices, coupled with the Indian crude basket's price increase of over 10% since the year's start, raises questions about potential impacts on India's oil marketing companies. So what’s causing this price hike? The backdrop of these price hikes includes an attack on Iran’s embassy in Syria, escalating tensions in the Middle East, and ongoing conflicts between Israel-Palestine and in Ukraine, which threaten to further disrupt global oil supplies. However, despite these international pressures, it appears unlikely that India will see an adjustment in fuel prices before the election concludes. Mint’s autos correspondent Sumant Banerji explains what the global rise in crude oil prices means for India, in today’s Mint Primer.
In 2017, a peculiar concern was raised in Vistara's boardroom at its Gurugram headquarters. The concern? Discomfort experienced by cabin crew due to their footwear. Such a matter would not typically be discussed at such high levels. This early attention to employee comfort reflected Vistara's commitment to addressing workforce issues earnestly. However, the situation seems to have evolved significantly by 2024. There is a shift in the company's approach to employee concerns, especially as Vistara undergoes a merger with Air India. This merger has introduced a new pay structure, particularly affecting pilots, leading to considerable unrest and reports of flight cancellations due to pilots calling in sick in protest. The merger aims to standardise pay across the combined entity, reducing Vistara pilots' guaranteed monthly hours from 70 to 40, aligning them with Air India's existing structure. This change has caused distress among pilots, some of whom spoke to Mint’s aviation correspondents Mihir Mishra and Anu Sharma for today’s Long Story. Mihir and Anu examine how the merger is affecting Vistara’s employees, especially junior pilots who are struggling with reduced salaries and unclear career progression prospects.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
That’s all for today. Thank you for listening.
We'll be back tomorrow with a fresh episode of Top of the Morning. Have a nice weekend!
Show notes:
The crowd of small firms in IPO street has never been bigger
Shrivelled paddy, wilted gram signal a lousy harvest ahead
Paid leave to WFH - India Inc nudges employees to vote
Mint Primer | Indian fuel prices: which way are they headed now?
At Vistara, some employees are caught in merger turbulence
-
Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Tuesday, April 9, 2024. My name is Nelson John. Let's get started:
Indian equity markets surged on Monday. Nifty and Sensex increased by around 0.6 percent each, hitting fresh record highs. The Bombay Stock Exchange's total market cap crossed the 400 trillion rupee mark for the first time during yesterday's trading session, as global crude oil prices dropped further.
Chennai-based Veritas Finance, a private lender to small businesses, , is heading for the public markets soon. Mint's new economy reporters Ranjani Raghavan and Sneha Shah report that Veritas is looking to raise 2,000 crore rupees. It has appointed four entities: Kotak Mahindra, HDFC Securities, ICICI Securities, and Jeffries, to help with the share issue. Last year, the company raised 1,200 crore rupees from a clutch of private equity investors. Veritas specialises in offering loans to small and medium enterprises in semi-urban and rural areas, with an average ticket size of 5 lakh rupees.
These days, banks are offering relatively high interest rates even for a simple savings account. It's a simple supply-and-demand equation: they want more money as deposits, so they can offer more loans to applicants. According to the latest data released by the Reserve Bank of India, 80% of deposits in banks are now being doled out as loans. This number is called the credit-deposit ratio, and is at its highest mark since the RBI started recording this data in 2005. Mint's banking correspondent Shayan Ghosh analyses this data, which is buoyed by the merger between the blockbuster HDFC merger. Some analysts expect the credit-deposit ratio to remain high, while others think it'll moderate soon, writes Shayan.
Speaking of blockbuster mergers, let's talk about the one between Disney and Reliance. In February, Disney agreed to merge its India business with Reliance Industries at a cost of just over 3 billion dollars. This raised some eyebrows in the media and entertainment industry: reports stated that Disney had acquired Star earlier at around four to five times that number just five years ago, in a bid to consolidate its position in India. Mint's consumer bureau editor Gaurav Laghate analysed the transaction document to find the cause for this steep haircut. Gaurav reports that despite it being labelled as a merger, Reliance will essentially take control of the joint venture moving forward. The reports also revealed that Viacom18, Reliance's media arm, is sitting on a cash pile of over 1.9 billion dollars at the moment. That, combined with the lack of potential suitors, meant that Reliance had the upper hand throughout the negotiations. The final step? An approval from the Competition Commission of India, as the new entity will have more than a 40% market share in many media segments. Insiders told Gaurav that they are confident of an approval.
Enterprise technology companies like to bundle their offerings. This ensures that they secure more revenue from their clients. A user may want just a single feature, but has to subscribe to the whole package. This process is called bundling – it’s like eating at a buffet. However, you may soon be able to pick the service of your choice, a la carte. After a probe by the European Union, Microsoft unbundled MS Teams from its popular MS Office package. The EU ruled that Microsoft was abusing its market powers by forcing users to pay for the whole bundle that included MS Teams. India has powers to do this too: the India Competition Act of 2002 was supposed to act in the interest of the consumer. Mint's tech correspondent Shouvik Das explains that while such a move in India would provide more choices — especially for businesses, it will make cross-sharing of data very difficult. While privacy is generally a good thing, this could turn out to be a pain: imagine every single calendar invite needing approvals from multiple apps. If you're not a fan of MS Teams but use Outlook, you might be happy to read this Primer by Shouvik.
Losing weight is usually a tough, long process. But drugs like Wegovy and Ozempic have changed that. a series of injections, and you shed kilos rapidly. But this magic drug hasn't reached the Indian shores yet: a patent is holding off Indian pharma companies from manufacturing liraglutide, which is the technical name of the drug. But Bloomberg reports that this patent only lasts till November. And India may have a willing maker already: Biocon, founded by Kiran Mazumdar-Shaw, has won approval from a regulator in the UK to sell the drug in India. Other companies are likely to bring their weight-loss drugs to the Indian market only in 2026.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
Show notes:
Veritas Finance plans ₹2,000 crore IPO
Deposit crunch hits banks as key metric nears 20-year high
Did Disney really take a big haircut merging its India assets with Reliance?
Can breaking up Big Tech really help businesses?
Generic weight loss drugs boosted by UK approval for Biocon
-
Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Monday, April 8, 2024. My name is Nelson John. Let's get started:
Just as India’s 245 billion dollar IT industry prepares for its earnings season, a high level exit has shook the industry. Bengaluru-based Wipro’s CEO and managing director Thierry Delaporte put down his papers late on Saturday. People aware of the matter told Mint’s Varun Sood that the real reason behind the Frenchman’s exit was a phone call from Wipro chairman Rishad Premji. Despite expectations of a stagnant performance for April to October, Delaporte expressed optimism for the latter half of FY25 to company chairman Rishad Premji. However, internal projections remain undisclosed as Wipro, India's fourth-largest IT firm, braces for a potential revenue dip in its upcoming April 19 earnings report. Delaporte was expected to complete his five-year term in July next year. However, to his surprise, the Wipro chairman declined to offer him a second term. On Saturday evening at 7:13 PM, Wipro announced a significant leadership change, appointing Srini Pallia as its new CEO, making him the company's eighth CEO since 2000.
Thierry Delaporte’s departure from Wipro’s C-suite follows a larger trend of expat CEOs finding it difficult to work in Indian IT boardrooms. Beyond the straightforward management of profit and loss, these leaders often grapple with cultural disparities that can significantly impact their effectiveness. Some of the Indian IT firms have ventured to appoint expat CEOs over the past few years. Notable names include Vishal Sikka - a US citizen - at Infosys, Brian Humphries at Cognizant, and Delaporte at Wipro, all of whom eventually parted ways with their respective companies under less than ideal circumstances. Mint’s Shelley Singh takes a look at the reasons behind the quick exits and temporary tenures of expat CEOs in Indian IT companies. Shelley writes that the primary issue lies in cultural integration. Expat CEOs often find it challenging to bridge the gap between Indian employees and a diverse client base, leading to a disconnect that adversely affects business operations.
Last month Prime Minister Narendra Modi along with information and technology minister Ashwini Vaishnaw presented the first national creators awards. Winners included popular YouTubers, Instagram influencers and other social media celebrities. The move came right before elections, underscoring the government’s attempt to woo young voters between the age of 18 and 29 - the generation of ‘digital natives’, which will have a significant role to play in the upcoming elections. Turns out the ruling party isn't the only one trying to cash in on the popularity of internet influencers. With the 2024 Lok Sabha elections just around the corner, parties are aggressively adopting digital strategies to captivate the young, tech-savvy electorate. They are embracing artificial intelligence, podcasts, social media influencers, and even virtual reality. This election marks a significant departure from traditional campaigning methods, aiming to resonate with young Millennial and GenZ voters. Mint’s media correspondent Lata Jha spoke to several industry insiders who shed light on the shift in how political parties are electioneering. While billboards and outdoor advertising remain in play, particularly in tier-II and tier-III cities, the digital realm is where the battle for attention is most intense. According to Rajni Daswani of SoCheers, digital advertising is saturating tier-I cities, with political leaders engaging with key influencers. Meanwhile, traditional media maintains its grip on smaller cities, tailored to local narratives. The use of AI stands out, with innovative applications like AI-generated speeches of late leaders to appeal to voters, and translation services breaking language barriers to reach a broader audience.
In September 2019, Sunil D’Souza, then managing director of Whirlpool India, was approached by Egon Zehnder for the CEO position at Tata Global Beverages, the beverage division of the Tata Group. Despite initial hesitations due to the conglomerate's scattered FMCG presence, a vision laid out by Natarajan Chandrasekaran, chairman of the Tata Group, convinced him to take on the challenge of streamlining and expanding the group's consumer goods sector. In December 2019, D’Souza was appointed managing director and CEO, transitioning the company into Tata Consumer Products Ltd (TCPL) by February 2020. Under his leadership, TCPL has seen significant growth, with revenue climbing to 13,783 crores rupees in 2022-23, an 11 per cent increase from the previous year, and profits soaring by 30 per cent to 1,320 crore rupees. The company's share price has also seen a remarkable surge, increasing by over three and a half times since December 2019. D’Souza's strategic moves have diversified TCPL's portfolio beyond beverages to include a variety of food products and household staples, challenging competitors across the FMCG sector. Mint’s FMCG correspondent Suneera Tandon tells the story of how D’Souza took the Tata group company to new heights and what his plans are for the future.
Did you know India was one of the first developing countries in the world to introduce the concept of a minimum wage? India introduced minimum wages in 1948, soon after gaining independence. Now, the country is on the cusp of transitioning from a minimum wage system to a living wage model. Aiming to ensure that workers and their families can afford a basic yet dignified standard of living, the government is planning to introduce living wages by 2025. But what are living wages? How will they benefit workers and what are the challenges that the government could face? Tina Edwin, Mint’s contributing editor, explains. A living wage, for one, exceeds the minimum wage by encompassing the cost of a decent standard of living, including food, housing, education, healthcare, and other essentials. It's calculated based on the economic situation of a specific region, reflecting the actual needs of a worker's household. Unlike the one-size-fits-all approach of minimum wages, living wages consider the varying cost of living across different states and even districts, arguably making it a more equitable standard of remuneration.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
A phone call, a discussion, and a firing: Behind Delaporte's Wipro exit
Expat exits: Why foreign-born CEOs don’t last the distance in Indian IT firms
When voters turn tech-savvy, can political parties be far behind
Beyond tea and salt: How Sunil D’Souza plans to spice up Tata’s FMCG pie
Mint Explainer: How workers will benefit from living wages
-
Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Friday, April 5, 2024. My name is Nelson John. Let's get started:
Indian equity markets surged on Thursday. Nifty and Sensex increased by around 0.4 percent each.
IT companies had a tepid financial year. A lukewarm ending in the fourth and final quarter has resulted in decline in revenue and mediocre profit margins. Mint's tech writer Shovik Das and IT correspondent Jas Bardia took a deep dive into the results of six of India's top IT companies: TCL, HCL, Infosys, Wipro, Tech Mahindra, and LTI Mindtree. Analyst estimates and projections don't paint a pretty picture, as the financials are likely to remain flat or go down in some instances. Recovery is also likely to be slow, Shouvik and Jas write. While we won't know this for sure till these companies release their quarterly and annual reports, the expectations are low from India's IT sector.
https://blankpaper.htdigital.in/dash/story/11712234575918
The central government decides how much money every state will receive — a process called financial devolution. Well, the states in southern India aren't happy with their share. That’s because Karnataka, Kerala and Tamil Nadu receive far less from the divisible pool of taxes than UP or Bihar. In the last couple few months, leaders from Kerala, Tamil Nadu, and Karnataka have publicly protested against this new fissure that’s emerged in India’s federal structure. It has also become the biggest campaigning point for regional parties, as the general elections draw closer. Mint's longform writer N. Madhavan examines if constitutional federalism is alive in 2024, and speaks to bureaucrats and economists to offer a possible solution for this conundrum.
https://www.livemint.com/politics/tax-divide-why-are-southern-states-upset-11712235311609.html
Land and property taxes are a huge revenue stream for most states. In 2023, a boom in the sale of houses also led to widespread buying of land. Top developers are buying land at record prices after being bankrolled by the public markets and healthy cash flow. An acre of land now costs around 16.5 crore rupees on average in India, reports Mint's Madhurima Nandy. Growing demand for homes will ultimately result in national and regional builders buying up more land, Madhurima explains.
If you've taken a Vistara flight this week you may have achieved a rare feat. Vistara flights have been getting cancelled en masse: every day, at least 50 of them have been cancelled due to unavailability of pilots. These pilots have been calling in sick as a form of protest against the Air India-Vistara merger. Under the transition, Vistara pilots will get a fixed salary only for 40 hours of flying a month, instead of the 70 hours they had earlier. Two major pilot unions, including one that only has pilots from Air India, wrote to the Tata Group chairman N. Chandrasekaran about the merger, as well as other systemic issues. These pilots want further conversations to smoothen their deal with the airline, reports Mint’s aviation correspondent Anu Sharma. With fewer Vistaras flying in the air, any further delay in returning to full scale operations might shoot up ticket prices for consumers.
Hiring can be a delicate and complex process, especially for organisations that are driven by strong work culture. But for senior level hiring across corporate India, it's more difficult than ever. Companies and candidates are now taking longer to make a decision — turning any hire into a 6-month process or longer. Until last year, this process usually took up to 3 months on average. Devina Sengupta, Mint's HR and workplaces reporter, speaks to executive search firms to find that there’s friction on both sides of the equation . Moreover, companies aren't doling out huge raises for potential hires to jump ship, and are taking a longer time to vet their candidates. With both sides in a standoff, this process is now longer than ever, headhunters told Devina.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
We'll be back next week with a fresh episode of Top of the Morning. Have a nice weekend!
Show notes:
The one bright star in a bleak year for IT
Tax divide: Why are southern states upset?
Land ahoy: Will the buying craze continue in FY25?
Air India pilots write to Tata chairman, say Vistara crisis ‘systemic’
Wary firms, candidates on fence slow top-level hiring
-
Indian markets largely remained flat on Wednesday. For a second consecutive day, benchmark indices closed in the red with both Nifty and Sensex ending the day less than 0.1 per cent below their previous close.
In 2020 the central government production linked incentive or PLI scheme. Hailed by the commerce ministry, with an outlay of almost 2 trillion rupees, the scheme aimed at supporting manufacturing growth in 14 different sectors spanning industries such as electronics, pharma and textile among others. The government is now set to tweak the flagship scheme by periodically reviewing its performance across different sectors and making necessary adjustments. This move aims to revitalise sectors lagging in progress and potentially eliminate the scheme in areas lacking investor interest and advancement. While the scheme has seen varying degrees of success across sectors, with electronics and pharmaceuticals among the beneficiaries, others like IT hardware and textiles have shown slower progress. Mint’s senior assistant editor Rhik Kundu reports on the government's proactive approach, which includes restructuring the scheme for underperforming sectors, enhancing efficiency, and positioning Indian manufacturers on the global stage.
Moody’s, Fitch, Standards and Poor. If you follow business or economy news you have probably heard these names a lot. These are sovereign debt rating agencies which rate countries based on their creditworthiness. These rating agencies grade countries based on several factors such as economic conditions, political climate and their ability to pay back a loan. The grade stretch from AAA for a country with a good credit score to D for countries that are unlikely to pay back the loan. Now an Indian player is set to jump into the sovereign debt rating game. Care Ratings Ltd, is set to debut in sovereign debt ratings, beginning with Asia and Africa and eventually targeting Europe. To facilitate this expansion, the company is establishing CareEdge Global IFSC Ltd in GIFT City, focusing initially on countries like Nepal, Mauritius, and South Africa where it has a footprint. Speaking to Mint’s senior editors Shayan Ghosh and Satish John, Mehul Pandya, the managing director and CEO of CareEdge, talked about the strategic move towards rating foreign currency denominated debt through the GIFT City subsidiary.
March saw a surge in the sales of electric two wheelers across the country. More than 1.3 lakh electric scooters and bikes were sold in March. The reason? Consumers rushed to capitalise on the soon-to-be-reduced government subsidies, which were cut by more than half. But it is not all rosy for the electric two wheeler makers, in fact if the numbers tell a completely different story. FY24 recorded the slowest EV adoption rate since FY21, primarily affected by a significant subsidy reduction last June. This reduction slashed the subsidy from covering 40% of the ex-factory price to just 15%. This marked a stark contrast to the almost six-fold rise in e-scooter sales witnessed in FY21 after the FAME-2 subsidy was tweaked. Mint’s autos correspondents Alisha Sachdev and Manjul Paul report on the dwindling numbers of e-scooter sales which follows a slash in government subsidies.
It was 24 September 2007, a regular Monday for the rest of the world. But that day in South Africa’s Johannesburg, something happened that would change India’s sporting landscape forever. When Pakistan’s Misbah ul Haq scooped Indian pacer Joginder Sharma’s delivery towards short fine leg, he was caught by Sreeshanth. With that catch, India did not only beat Pakistan at the finals of the T20 world cup, but also started a domino effect that would bring forth one of the biggest sporting leagues in the world. After India beat its arch rival and won the world cup, this new format became all the rage. Capitalising on better watchability of this three-hour long format of the gentleman’s game, BCCI launched its very own Cricket league - the Indian Premier League. Cricket hasn't looked back since then in India. Since its inception in 2008, the IPL has emerged as a financial powerhouse, significantly influencing the sports sponsorship, endorsement, and advertising landscape in India. A report by GroupM highlights that investments in these areas have escalated from 2,423 crore rupees to 15,766 crore rupees in 2023. IPL commanded an astonishing 87% share of last year's total spend. This dominance is underscored by a Brand Finance report showing the IPL's brand valuation surged by 433% in 2023, crossing the 10 billion dollar milestone. The IPL's unparalleled popularity and financial success, driven by a massive 430 million TV audience, contrast sharply with other sports leagues. Despite their efforts, these leagues struggle to match the IPL's appeal, with even the Pro Kabaddi League, the second most popular, reaching only 226 million viewers. The disparity in financial and viewer support highlights the challenging landscape for other sports leagues attempting to emulate the IPL's success model. Mint’s senior editor Varuni Khosla takes a deep dive into the modalities of the financial juggernaut that is the Indian Premier League.
Vistara is grappling with a series of flight cancellations and delays. According to the airline, inadequate crew rostering is to blame. Now, the carrier is looking to curtail its network for the month of May, people close to the development told Mint’s Shrrejay Sinha. CEO Vinod Kannan addressed the issue with pilots after widespread disruptions led to passenger inconvenience. The airline's inability to manage pilot schedules, especially in March, resulted in operational chaos due to a significant rise in unplanned sick leaves. Vistara, merging with Air India under the Tata Group, is transitioning to a uniform pay structure, affecting pilots' salaries and potentially contributing to the disruptions.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
Show notes:
Sunset looms for PLIs with fading interest
How a domestic rating agency wants to take on the big guns
Slashed subsidies to cause e-two-wheeler sales to ebb
In a different league: How the IPL dwarfs other sports
Vistara blames rostering for flight disruptions, warns of curtailed ops till May
-
Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Wednesday, April 3, 2024. My name is Nelson John. Let's get started:
Indian equity markets remained largely flat on Wednesday. Both Sensex and Nifty fell marginally around 0.1 percent each.
Director Anurag Kashyap's Gangs of Wasseypur became a cult classic because of its realistic depiction of 1980s gang wars in eastern India’s coal belt. However, reality is stranger than fiction – an adage that journalists strive to prove. We invited Romita Datta, a West Bengal-based journalist, to write about Sheikh Shahjahan, a revolver-toting goon who came to rule over the village of Sandeshkhali. As his power and popularity grew, Shahjahan aligned himself with the various political forces in West Bengal, including the Left, CPI (M), and the Trinamool Congress. But before becoming an elected official, Shahjahan got caught up in allegations of extortion, land grabbing, sexual abuse and money laundering. He was finally arrested in February. Romita's exhilarating story of this powerful shrimp-farming thug captures his rise to prominence and how he then ended up behind bars.
The pandemic, social distancing, inflation and unseasonal rains all got in the way of the alco-bev industry’s success over the last few years. But an unusual Indian Summer seems to be just what it needs for a revival of its spirits. In this weather, a cold beer can turn around a hot, sweaty day. Beer makers hope so too: they are gearing up for increased sales in 2024. Last year, sales dropped 10 percent as unseasonal rains dented demand. However, officials from these companies expect some uncertainty stemming from election dates. A long election cycle will result in sporadic dry days, lowering sales, writes Mint's lifestyle and hospitality correspondent Varuni Khosla, in this seasonal industry forecast.
The devil works hard, but political parties in India work harder. After the Supreme Court struck down Electoral Bonds as "unconstitutional", the Ministry of Finance is now working towards a new scheme for campaign financing or the funding of political parties. Mint's economy reporter Gireesh Chandra Prasad reports that the new scheme will directly address the apex court's concerns around transparency and extent of financing. This scheme, however, is only likely to come into place once the general elections are over, Gireesh adds.
For years now, electric two-wheelers have enjoyed generous subsidies by the central government. The government recently introduced another subsidy, but this is capped at 10,000 rupees per vehicle. Mint's national editor and auto expert Sumant Banerji writes that this move will hike prices by anywhere between 5 to 10,000 rupees per scooter — an increase of about 7 to 10% for automakers. The industry, for its part, hasn't passed on this hike to the consumer yet. With electric scooters already more expensive than their petrol counterparts, any further increase in prices might put potential customers off, writes Sumant.
Last week, some Axis Bank customers got a huge shock when they received messages of money being randomly deducted from their account. To make matters worse, the money was deducted in a foreign currency. A series of international fraudulent transactions hit dozens of Axis Bank customers across India. Some others received OTPs to carry out the same transaction. Axis reversed these transactions in a few days, but the damage was done. Mint Money's Shipra Singh spoke to some victims of this scam. Some of these customers had already blocked their cards and requested a new one — only to find these fraudulent transactions taking place in the new card as well. Axis hasn't provided an explanation to its customers as to why this happened. Shipra also provides a helpful list of actions one should take if they are affected by this scam or know someone who is.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
Guns n’ prawns: The strongman who ruled Sandeshkhali’s blue economy
As India braces for a hot summer, beer makers have much to cheer
From the ashes of electoral bonds, a new scheme is rising
Electric two-wheelers weigh the cost of subsidy cuts
How some Axis Bank credit cards became fraud targets
-
Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Tuesday, April 2, 2024. My name is Nelson John. Let's get started:
Indian markets started the new financial year with a fresh vigour as benchmark indices closed in the green on Monday. BSE’s Sensex rose more than 350 points to close 0.49 per cent up from its previous close. NSE’s Nifty-50 also climbed more than 130 points to close 0.61 per cent above its last close. Tata Steel, Ultratech Cement and NTPC were among the top gainers on Monday.
How fast is India growing? Is it really growing? Well, there are a couple of ways to find out. One can look at the constant construction happening in all major metros across the country. More and more infrastructure projects are coming up - a likely indicator of growth. Another way to track this growth is to look at GDP numbers. In FY23 India’s GDP grew at 7 per cent. For the first three quarters of the outgoing fiscal, the growth remained above a healthy 8 per cent. The government estimates the number for the full fiscal year 2024 to be at 7.6 per cent. So what’s driving the growth? While there is more than one driver, some attribute this boost in GDP numbers to the government's push for capital expenditure. But there are other engines of growth too - public consumption being one of them. Mint’s senior editor N Madhavan examines the factors behind India’s surge.
What’s in a name? Not much according to William Shakespeare, but for small finance banks, it might make a world of difference. Small finance banks in India are advocating for a rebranding, seeking to drop the 'small finance' label to enhance their appeal to depositors and investors. This request was discussed in a meeting with RBI officials, people aware of the matter told Mint’s banking editor Gopika Gopakumar. The banks aim to improve customer perception and attract more current and savings account deposits with the name change. Some banks are testing the waters. Hoardings outside AU Small Finance Bank’s regional office in Mumbai’s Kurla read simply ‘AU Bank’. Websites of almost all SFBs, barring Ujjivan SFB and North East SFB, have dropped the label from their domain names. The term 'small' was initially used in the naming of small finance banks to highlight their core mission of promoting inclusive banking. Over time, these banks have achieved their goal of extending credit to small and micro businesses, demonstrating their commitment to supporting underserved segments. Now to continue inclusive growth, having more accounts and fixed deposits is necessary, which will be helpful if the word ‘small’ is dropped, a spokesperson for Unity SFB told Gopika.
What’s light, has high strength, is durable and is extremely useful for the aerospace industry? It is a material called carbon fibre. Carbon Fibre is also extensively used to make sports equipment like hockey sticks, racquets, archery bows and golf clubs. Carbon fibre bicycles are popular among enthusiasts because of their light weight. The reason I am talking about it is because India is gearing up to start domestic production of carbon fibre, targeting aerospace, civil engineering, and defence sectors. The push comes as a strategic move to lessen imports and navigate around the European Union's impending carbon tax on steel and metal products. India is currently dependent on carbon fibre imports from countries like the US, France, Japan, and Germany. The EU's Carbon Border Adjustment Mechanism set for 2026 has propelled India to consider establishing its own manufacturing capabilities. The Indian government is in talks to create carbon fibre manufacturing units, with research support from leading institutions like the Indian Institute of Technology (IIT) to meet international production standards. Mint’s Dhirendra Kumar brings us this exclusive story on the development, which is a part of India’s plan to expand technical textiles export from $2.5 billion to $10 billion within five years.
Over 60 years ago, American mathematician and meteorologist Edward Lorenz's minor data alteration in a weather simulation at MIT led to significantly different results, laying the foundation for chaos theory - also known as the 'butterfly effect.' This concept, illustrating how small changes can have large consequences, is now relevant across various fields, prompting reflection on the impact of larger phenomena like climate change. India's FMCG sector, heavily reliant on imported palm oil, faces potential disruptions from the European Union's proposed carbon tax and the effects of climate change on palm oil production. With India as the world's largest palm oil importer and facing stagnating supplies from major producers Indonesia and Malaysia, the sector is at a crossroads. Additionally, the cocoa industry faces similar challenges, with extreme weather conditions and diseases reducing global output. Mint’s national editor Abhishek Mukherjee takes a deep dive into how the FMCG industry is staring at an existential crisis with climate change - arguably the biggest issue facing humanity.
India is poised to standardise the accreditation process for alternative medicine facilities, including Ayurvedic wellness centres, homoeopathy clinics, and Unani hospitals. The National Accreditation Board for Hospitals and Healthcare aims to consolidate accreditation standards across all AYUSH disciplines. These include Ayurveda, Yoga and Naturopathy, Unani, Siddha, Sowa Rigpa, and Homeopathy. The government aims to get the process running by June, streamlining processes and ensuring quality care. This initiative comes after the insurance regulator's IRDAI’s recent inclusion of AYUSH treatments in health coverage.. Mint’s health and pharma correspondent Somitra Ghosh takes a look at the initiative that highlights the government's effort to boost the alternative medicine sector's credibility and research. The move however, has been met with mixed reactions.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
That’s all for today. Thank you for listening.
We'll be back tomorrow with a fresh episode of Top of the Morning. Have a nice day!
Primer | What’s driving Indian GDP surge: Public spending or private consumption
'Small' isn't beautiful for small finance banks
India plans to make carbon fibre in response to EU carbon tax
Ayurveda, alternative medicine to get an accreditation nudge
Blowing Hot: How climate crisis can rain on FMCG’s FY25 show
-
Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Monday, April 1, 2024. My name is Nelson John. Let's get started:
With the financial year wrapping up last week, a lot of data was published from the past 12 months. One crucial data set was that from the Mahatma Gandhi National Rural Employment Guarantee Act. This act provides a 100 days of guaranteed employment to every household. Most routinely, these jobs are available in the construction sector. With a poor monsoon last year, it was expected that more people would take up MNREGA (pronounced mun-rega) jobs. However, official data shows that year-on-year jobs remained largely flat. Usually, a bad monsoon would result in less agricultural work — and in turn, more MNREGA job applicants. Mint's economy reporters Gireesh Chandra Prasad and Rhik Kundu bring you the details.
The big tech development from last year was the release of ChatGPT, an artificial intelligence system that generates answers based on inputs. ChatGPT's free model runs on the GPT 3.5 version, while the paid model that costs 20 dollars a month uses GPT 4. But many users are unhappy with the output, even in the paid model. ChatGPT's founder Sam Altman agrees: he admitted that it "kind of sucks". A new version is expected this year. Mint's tech editor Leslie D'Monte writes about what we can expect with GPT-5, and how ChatGPT's competition is currently performing.
If you're a tech geek, you might have heard of Carl Pei. He's the original mastermind behind the wildly successful brand of OnePlus, and later started his own company, named Nothing. The China-born CEO started out by making a website at 12 years old to help people beat a Pokemon game, and never stopped tinkering with both software and hardware. The result? Helping establish OnePlus, which ended up selling millions of phones — first in China, and then the rest of the world. But Pei still felt he needed to prove something on his own, and left in 2021 to start Nothing. Mint Lounge's Nitin Sreedhar speaks to Carl Pei about his journey and work for this fantastic profile.
Chances are, you haven't been to watch a Bollywood movie in the theatres so far this year. And I won't blame you: the releases have been quite lacklustre. Mint's media and entertainment reporter Lata Jha reports that the absence of major stars from released movies has caused a drop in cinema goers. But the trend doesn't stop there: a slump in prices paid by OTTs such as Netflix, Hotstar, and Amazon Prime to stream movies post-release are also hampering the movie business.
You may have heard of ShareChat and Moj. These are two short-video platforms that became popular after the Indian government banned TikTok in 2020. Both ShareChat and Moj are owned by the same company, Mohalla Tech. But despite being operational for more than four years, the companies haven't yet figured out a sustainable business model. The result? Losses adding up to more than 5,000 crore rupees in the last financial year. Where does Mohalla go from here? Priyamvada C tries to answer.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
That’s all for today. Thank you for listening.
We'll be back tomorrow with a fresh episode of Top of the Morning. Have a nice day!
Show notes:
Construction growth eases pressure on NREGA jobs amid farm slowdown
Will OpenAI pull out GPT-5 from its hat next?
How Nothing CEO Carl Pei is breaking barriers
Film industry had a muted Jan-March, as star vehicles play truant
ShareChat and Moj are floundering. Can the businesses be fixed?
-
Good morning listeners,
Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Friday, March 29, 2024. My name is Nelson John. Let's get started:
Markets continued to pick up on Thursday. Benchmark indices Nifty and Sensex increased by around 0.90 percent each. Power, auto, and metal stocks led the surge during yesterday's trading session.
Despite yesterday's good news, the markets have been volatile of late. Much of this volatility can be attributed to smallcap stocks, which suffered a crash after the markets regulator warned investors of the possibility of a smallcap bubble. The BSE Smallcap index is flat for the year, and down 4.5% in March. Mint's corporate writer Varun Soo unpacks one of the reasons behind this volatility: offshore funds. After a long investigation, Varun discovered that three men at the helm who were involved in dozens of smallcap stocks. They have been accused by the Enforcement Directorate of operating a "hawala" scam and manipulating stocks. This is an excellent read if you want to understand how smallcap stocks operate.
Thursday was also the last trading day of the financial year for 2024. For the last 12 months, Nifty and Sensex have increased by 31 and 27 percent respectively. Small and midcap stocks increased by more than 65%, despite the recent volatility. Mint’s markets correspondent Dipti Sharma brings you a summary of the equity markets’ performance in the past financial year.
You might have made some gains on a stock, but earlier you still had to wait two working days for the proceeds to be deposited to your account. This changed to one day. Now, you can realise your gains instantly: the markets regulator Sebi has approved same-day settlement on a trial basis. This process is called the T+X system, where X is the number of days taken to process a transaction. A limited number of brokers and a set of 25 stocks are currently following the T+0 system. Sebi is going to assess the results in 3 and 6 months from now, before deciding if a universal rollout is possible. Dipti Sharma explains the T+0 model, and how it might change equity investing forever.
Recently, the Reserve Bank of India asked Federal Bank and South Indian Bank to stop issuing new co-branded credit cards. Usually, these tie-ups are either with retail outlets or fintech companies. Mint's banking correspondent Gopika Gopakumar writes that these partnerships came under the RBI's scanner after it found that banks were sharing their risk assessment models with the companies they tied-up with. These assessments are supposed to be done in-house by the banks, which contain sensitive information about a user’s financial data. The RBI also wants to prevent the rapid rise in credit cards issued — about 99 million such plastic is currently in circulation in India.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
-
Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Thursday, March 27, 2024. My name is Nelson John. Let's get started:
Markets enjoyed an uptick on Wednesday. Benchmark index Nifty increased by around half a percentage point, while Sensex was up by 0.73 percent by the time markets closed.
India is short on directors. Not the ones that make movies — plenty of those around — but those that run companies. According to the Companies Act, every board must have a certain number of directors, depending on the size of the company. These directors should ideally be independent and impartial, and take decisions that benefit the company's future, and in turn, its shareholders. But as Mint's corporate governance writer Varun Sood reports, these directors might be shaky. Over 25 such appointed directors have called it quits before they could join boards since 2021. These directors have time and again cited personal reasons for their sudden decision to quit. As Varun writes, these often take place at companies which are undergoing a governance crisis, like Zee Entertainment, Dish TV, and other firms like Alkem Laboratories and Union Bank of India. Varun spoke to directors, investors, and governance experts to find out why this curious trend is gathering steam in India Inc.
Alternative investment funds, or AIFs, are going through a rough time right now. The markets and banking regulators came down heavily on these financial instruments, issuing notices that limited their scope of investments. Private and public banks have a fair bit of exposure to AIFs, so the Reserve Bank of India wanted to protect depositors against risky or fraudulent borrowing. But after Sebi floated a consulting paper, RBI might be willing to change its course: it is exempting banks and NBFCs from liquidating or provisioning the money it had in AIFs. Provisioning is the process of setting aside an equal amount of money to protect investors and depositors. The regulators came down hard on AIFs in December after it came to light that AIFs had borrowed from the very same banks who had invested in them, leading to a potential conflict of interest.
If you're a startup, it's a hard time to raise money these days. Despite that, automobile platform CarDekho is working towards a new round of funding, reports startups and new economy reporter Sneha Shah. The company is in talks to raise anywhere between a 100 to 150 million dollars that will provide exits to existing investors. The company will now be valued at 1.3 billion dollars after this round, and claims it is on its way to an IPO in the next two years. CarDekho had a revenue of more than 2,300 crore rupees in FY23, which was a 46 percent jump from the previous financial year.
Maruti Suzuki had high hopes from Jimny, a model it launched last year catered towards a market that likes off-road driving. That capability should come in handy now, as the Jimny has to overcome a steep climb from the depths of car sales hell. Only about 500 units of the Jimny have been sold in January and February. Compare that to its direct rival, the Mahindra Thar — 6,000 Thars were sold in February alone. Mint's resident auto expert Sumant Banerji takes a deep dive into the misfortune of Maruti's off-roading ambitions that hit a rough patch — it's a rut the company can't seem to get out of.
Who watches the watchmen? The Indian government has decided: a fact-checking unit. It wanted to constitute such a team to flag misinformation about the government — this body would have directive powers too. Press freedom advocates and activists filed an appeal against the constitution of such a body, and the Supreme Court paid heed. The SC has now stayed the creation of this unit. Mint's special correspondent Shouvik Das explains the ramifications of the government's original plan, SC's order, and how artificial intelligence plays a crucial role in the entire saga.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
- Näytä enemmän
