Episodes
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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, January 3, 2024. This is Nelson John, let's get started.
The Indian stock market experienced significant volatility in 2024, with the Nifty 50 plunging nearly 11% from its September peak amid heavy foreign investor selling and a weakening rupee. Mayur Bhalerao notes that over 25% of stocks are trading below their peak values, presenting potential buying opportunities. However, elevated valuations, particularly in the mid-cap and small-cap segments, continue to be a concern.
The government has approved a revamped crop insurance scheme with a financial outlay of ₹69,516 crore for the next financial year. Additionally, ₹825 crore has been allocated to accelerate the adoption of technology in farming. Sayantan Bera reports that part of this fund will support satellite-based crop yield assessments and a network of automatic weather stations. However, challenges remain, including delays in claim settlements and limited state participation. With 87% of India’s districts vulnerable to drought and substantial weather-related economic losses, this scheme is crucial for safeguarding farmers' livelihoods.
Traditionally, angel investing—small investments in startups—was dominated by founders of established startups. However, the landscape is shifting as sports stars like MS Dhoni and PV Sindhu enter the early-stage funding scene. Mansi Verma reports that while overall angel funding fell to $213.5 million from $441.1 million and the number of funding rounds halved, over 1,000 first-time angels joined the fray last year. Government-backed incubators are also emerging as key players, creating a diverse and evolving pool of investors.
Despite the growing popularity of SUVs, hatchbacks continue to hold a special place in the hearts of Indian car buyers. Maruti Suzuki India reported an impressive 29% year-on-year growth in small car sales for December. With small cars making up half of its portfolio, this uptick is a significant boost for the market leader. Manish Joshi notes that while overall sales remained flat, a 4% price hike is expected to drive profit growth. Additionally, Maruti’s valuation appears reasonable at 22 times its annual earnings, he adds.
2024 wasn't a great year for Bollywood. Established stars like Alia Bhatt, Ajay Devgn, and Akshay Kumar ventured into experimental films that did not work. Lata Jha writes that while such films can enhance an actor's versatility, they also risk alienating wider audiences. For example, Jigra had a budget over ₹80 crore but earned only ₹30.7 crore. Despite the niche focus, stars maintained their high fee structures. That ultimately resulted in costly projects that often underperformed.
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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, January 2, 2024. This is Nelson John, let's get started.
All said and done, Nifty 50's returns of 9% in 2024 were about average. Expectations for the new year are understandably moderate. Abhinaba Saha writes that despite these forecasts, one sector that is likely to do well is real estate. Consumer durables will also be aided by strong demand and government support. Additionally, banks that will capitalise on the upcoming credit cycle are also likely to fare well, Abhinaba writes.
Diamonds might be forever, but their returns are certainly not. Anil Poste spoke to experts, who said that asset classes like diamonds can stagnate for years. Diamonds prices had plateaued for two decades, and are now falling — thanks to lab-grown diamonds. Unlike equities that tend to grow in value through innovation and profitability, diamonds lack a reliable resale market. Jewellers often only offer exchanges, instead of buying it back for cash. Experts caution you to treat diamonds as luxury purchases rather than dependable investments, unlike gold.
India's overburdened legal system is the recipient of many jokes. However, the tide turned in 2024: district courts disposed of more cases than were pending. This is the first time in our country's history that the number of resolved cases exceeded pending ones. Manas Pimpalkhare writes that this is the result of enhanced efficiency driven by technological integration and virtual hearings. The central government's eCourts scheme received a lot of funding and support to improve how cases are handled, Manas writes.
Indian companies are increasingly turning to qualified institutional placements (QIPs) to raise funds for capital-intensive projects, with 2024 setting a record for such fundraising. Priyamvada C reports on data from Prime Database which shows companies raised ₹1.37 trillion across 95 QIPs, significantly higher than ₹54,350 crore from 45 issues in 2023. Prominent transactions included Vedanta and Zomato, each raising ₹8,500 crore, alongside others like Adani Energy Solutions and Godrej Properties. The surge in QIPs is attributed to favorable market conditions, robust liquidity, and strong investor interest, with sectors like BFSI, real estate, and IT being particularly active.
The Indian rupee's decline against the dollar in 2024 impacted the return of FPIs, despite its relative stability compared to other global currencies. While the Sensex in rupee terms returned 8.16%, its dollar equivalent, the BSE Dollex 30, only managed a 5% gain. The rupee's modest annual fall of 2.9% was cushioned by the RBI through various market interventions. The outlook remains challenging for FPIs due to potential US policy changes under the Trump administration that may keep US bond yields high, discouraging significant investments in Indian equities and bonds. FPIs invested a mere ₹427 crore in 2024, a drastic decrease from ₹1.7 trillion in 2023. In contrast, domestic institutional investors compensated with a record ₹5.26 trillion in purchases.
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Episodes manquant?
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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, January 1, 2024. This is Nelson John, wishing you a very happy new year.
Corporate India has a lot of cash on its hands. A study of Sensex 500 companies found that 66 companies collectively held ₹2.7 trillion in cash and equivalents at the end of FY24, of which ₹99,100 crore remains unallocated for any purpose.. This has prompted some calls for higher shareholder returns through dividends or buybacks. Despite these firms returning 54% of their profits back to shareholders, analysts argue there’s room for more, Nehal Chaliawala writes. Many firms like tech giants and industrial leaders are urged to establish clearer dividend policies tied to profits rather than cash reserves. The demand for larger dividends is only growing.
What's the connection between Apple's iPhone and Indian stocks? Both became increasingly desirable commodities in 2024. Abhinaba Saha writes that while the upper strata of society continued to buy iPhones, those with less disposable income continued to prioritise necessities. This is called a K-shaped recovery. The Indian stock market mirrored this consumption dynamic: Nifty Realty and Nifty India Consumption indices performed strongly due to a trend toward premiumization. However, FMCG companies struggled due to declining sales. Investors too have caught on to this trend, and are focusing on established premiumization trends, Abhinaba writes.
India's data centre capacity is expected to rise significantly next year. Data localisation laws are the primary cause, and thanks to rapid 5G usage, companies have more than enough data to store. Leslie D'Monte writes that current estimates forecast capacity could double to 2-2.3 gigawatts by 2027. Major players like AWS, Microsoft Azure, and Google Cloud are expanding their presence in India. An estimated investment of ₹55,000–65,000 crore is needed to fulfill these needs, Leslie adds.
Generative AI is becoming a major focus for global tech spending, and is set to account for 6.5% of budgets in 2025—a significant jump from 2024, according to ISG. GenAI’s use in customer service and chatbots is growing rapidly, but opinions on its impact on India’s $254 billion IT services industry are mixed. Some analysts Jas Bardia spoke to, like Keith Bachman from BMO Capital Markets, predict GenAI will drive pricing pressure as clients demand cost savings from efficiency gains. This could challenge revenue models for IT firms, especially during contract renewals. Others, like Axis Capital, argue that GenAI will fuel growth, enabling firms to innovate and create new opportunities, as cost savings are reinvested into advanced tech solutions.
The Indian Institutes of Technology (IITs) are becoming a key recruitment ground for private universities seeking to strengthen their faculty and improve in global rankings. Private institutions such as SRM Institute of Science and Technology, BML Munjal University, and Dayananda Sagar University are registering with IITs to recruit master's and PhD graduates in fields like mathematics, chemistry, and physics. These institutions offer median annual salaries of ₹12-15 lakh, comparable with those offered by top recruiters at older IITs. Universities are targeting IIT graduates to boost their research output and international reputation, report Pratishtha Bagai and Devina Sengupta. With IITs renowned for their research ecosystem and strong brand image, hiring from these institutes helps private universities attract better students and faculty.
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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, December 31, 2024. This is Nelson John, let's get started.
The markets regulator’s crackdown on futures and options trading is already showing significant impact. Ram Sahgal reports a nearly 25% month-on-month decline in index options turnover in November, with retail and proprietary traders accounting for about 75% of this drop. Stricter curbs, including larger contract sizes, are set to take effect in January, likely reducing volumes further in the new year. Sebi implemented these measures in response to widespread losses incurred by retail investors in F&O trading over the past couple of years.
Adani Enterprises announced plans to sell its 43.94% stake in Adani Wilmar to joint venture partner Wilmar International for over $2 billion. Nehal Chaliawala reports that the move aims to address liquidity concerns as the company refocuses on core business investments. Adani Wilmar, with annual revenue nearing ₹50,000 crore, will also undergo a name change. Additionally, 12.87% of its stake will be sold through an offer for sale to meet public shareholding requirements. This decision comes amid speculation about Adani's exit from non-core businesses following allegations of fraud that have affected the group's financial stability.
In a report released on Monday, the Reserve Bank of India flagged concerns about stress in unsecured retail credit spilling over to larger loans, such as housing and auto loans. Shayan Ghosh reports that nearly half of personal loan borrowers also have outstanding secured loans. According to the RBI’s Financial Stability Report, defaults in unsecured loans could prompt lenders to classify other loans held by the same borrower as non-performing. While the gross non-performing asset (GNPA) ratio for unsecured loans currently stands at 1.7%, the RBI cautioned that rising write-offs could be masking the true extent of asset quality risks.
According to the Chinese zodiac, 2025 will be the Year of the Snake—symbolizing flexibility, growth, and change. Devina Sengupta writes that India Inc. is set to experience all these dynamics, with employees expected to switch jobs at a faster pace. Companies will likely go beyond salary hikes to focus on upskilling initiatives. While rural hiring in the FMCG sector is projected to rise by 10%, weak consumer demand, driven by inflation, may dampen growth. High demand for talent is anticipated in sectors like AI, data science, and digital transformation. Compensation increases are forecasted to average around 9.5%, underscoring the competitive landscape for skilled professionals.
During the 2015 Paris Agreement, India committed to achieving net-zero emissions by 2070. Among India Inc., the targets vary significantly. Of the Nifty50 companies, 19 have yet to set net-zero or carbon-neutral goals, 20 have set net-zero targets with a median year of 2040, and 11 aim for carbon neutrality by 2032. Nehal Chaliawala reports that Infosys was the first to achieve carbon neutrality in 2020 and plans to reach net-zero by 2040. His analysis highlights that the IT sector leads in climate commitments, while financial services have the highest proportion of companies without stated goals. Other sectors, such as automotive and pharmaceuticals, also lag behind with unclear climate targets.
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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, December 30, 2024. This is Nelson John, let's get started.
Several major investors of Religare criticised a PIL that led the Madhya Pradesh High Court to indefinitely stay the company's upcoming annual general meeting. They argued that a takeover of Religare by the Burman family could concentrate ownership and harm minority shareholders. Nehal Chaliawala writes that one executive from a mutual fund said that holding an AGM is an independent matter, and unrelated to regulatory approvals. The AGM was scheduled for December 31. Key leadership issues, particularly those surrounding the chairperson Rashmi Saluja, were slated to be discussed.
America's sought-after H-1B visa is doing the rounds after being brought in the limelight by Elon Musk. This visa is essential for hiring specialized foreign workers. Usually, skilled workers from India and China are first in line for such a visa. Shelley Singh writes that Musk's interest in hiring more workers via the H-1B is at loggerheads with President Donald Trump's conservative supporters, who want tighter immigration norms. However, the Indian IT sector is becoming less reliant on the H1-B as more American companies open offices in India.
The government wants to cut red tape, and it wants to do it by next year's Union Budget. Gireesh Chandra Prasad reports that the government is identifying regulations that can be relaxed during the Budget to help revive a slowing economy. These rules will directly address concerns of "over regulation" in certain sectors, and will scale back these rules to help India Inc. flourish without having to worry about endless compliance norms. Gireesh identifies two major areas where a streamlined process could do wonders: land and labour laws.
If your portfolio includes one of India's top five IT stocks, you probably had a mixed 2024. Revenue growth this past year slowed down, compared to the previous year. Jas Bardia and Varun Sood write that despite this, shares of TCS, Infosys, HCL, and Tech Mahindra performed better than expected. 2025 might bring heavier spending by these companies due to the US Federal Reserve's interest rate cuts. Increased revenues on the back of deflated base numbers would bode well for these IT stocks.
It's hiring season for rural India. Devina Sengupta and Suneera Tandon write that India's consumer goods companies are ramping up hiring in rural markets. Rural markets outperformed their urban counterparts this year, leading to this move. There is a higher demand for roles such as van sales representatives, leading to this move. Notable firms like Godrej Consumer Products, Dabur, and ITC are expanding their workforce and introducing more economical options to try and push deeper into the hinterlands. Recruitment firms are reporting a 10-15% increase in hiring by fast-moving consumer goods companies in these areas.
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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, December 27, 2024. This is Nelson John, let's get started.
Former Prime Minister and finance minister during the 1992 economic liberalisation, Dr. Manmohan Singh, passed away at the age of 92 at Delhi’s AIIMS last night. Dr. Singh, who is often credited with opening up the Indian economy, retired from the Rajya Sabha earlier this year—ending a 33-year stint in the Upper House of Parliament.
After a soaring streak, India’s residential property market took a downturn in 2024, experiencing a 4% drop in home sales. This marked the first slowdown since the pandemic, with a corresponding decrease in new project launches. However, despite the dip in sales and new supplies, property prices didn't follow suit and instead climbed higher, writes Madhurima Nandy. In the top seven cities, residential sales didn't reach the peaks anticipated for 2024, as reported by Anarock Property Consultants. Election activities and a sluggish process for project approvals contributed to fewer new project launches. While sales volumes dropped, the value of sales actually increased by 16% due to rising home prices and larger unit sizes.
As the allure of prestigious campus placements at Indian Institutes of Technology (IITs) begins to wane in the face of a global economic downturn, the institutions are rallying behind their students, especially those who have missed the initial rush of high-profile recruiters. In response to the challenging job market, IITs are introducing innovative support systems to aid their students in securing employment. Recognizing the importance of mentorship and preparation, IIT Delhi has launched the "Call a Friend" program. This initiative connects final-year students with peers who have successfully navigated the placement process. The idea, Devina Sengupta reports, is to provide real-time advice and emotional support from those who understand the stress and demands of securing a good job offer.
In its annual report on the trends and progress of banking for the fiscal year 2023-24, the RBI outlined a series of potential regulatory changes aimed at strengthening the banking system further. Gopika Gopakumar reports on the changes that include eliminating prepayment penalties on floating rate term loans for small businesses, tighter oversight of inter-linkages between banks, NBFCs, and private credit firms, and more stringent regulations for payment aggregators. RBI is also set to finalize guidelines that will require financial institutions to disclose climate-related financial risks, incorporating scenario analysis and stress testing to gauge these risks better.
In India, niche American dramas and smaller Hollywood movies like Tom Hanks' Here and Michael Keaton’s Goodrich are carving out success at the box office by appealing to a specific audience that doesn't mind shelling out a bit more for tickets. These films, often showcased in select urban theaters, come with a higher price tag, sometimes over ₹500 a pop. Despite this, they manage to attract a dedicated crowd that values quality storytelling over blockbuster effects. Lata Jha spoke to industry insiders who explained that these movies, typically acclaimed at festivals or tipped for awards, draw viewers who appreciate premium content and are prepared to pay for it. Films like Here and Goodrich have made respectable earnings in India by targeting their ideal audience with higher ticket prices, balancing out their more modest box office hauls.
The Sanskrit word Simhavalokana refers to the retrospective glance of a lion as it surveys the path it has traversed. This idea captures the essence of reflecting on key lessons from the financial markets in 2024. This year offered several critical takeaways for investors. Industry consolidation emerged as a strong theme, particularly in sectors like telecom and airlines in India. With the market share of top players increasing significantly, this trend highlighted the potential for multi-year returns from survivors in consolidated industries. Economic events also underscored the dominance of climate-driven food inflation over monetary policy. Valuation metrics also delivered important lessons. Markets in politically and economically troubled regions like Argentina and Pakistan delivered unexpected returns, proving that bad macroeconomic news is often already priced in. Meanwhile, IPOs emerged as a cautionary tale. Swanand Kelkar, managing partner at Breakout Capital Advisors, shares market lessons from the year gone by.
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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, December 26, 2024. This is Nelson John, let's get started.
Honda and Nissan are set to merge by mid-2025, along with Mitsubishi, creating the world’s third-largest auto group after Toyota and Volkswagen. The new entity, valued at $50 billion, is expected to generate $191 billion in revenue and sell over 8 million cars annually. The merger is driven by challenges in China, where both brands are losing market share, and the need to accelerate EV development. The merger promises cost savings, shared resources, and a stronger push into electrification, though sceptics question its potential success, citing previous failed auto tie-ups. N Madhavan explains what the whole merger is about. In India, where Honda and Nissan hold marginal market shares of 1.4% and less than 1%, the impact may involve shared platforms and streamlined operations, but specifics on their manufacturing facilities remain unclear.
N Srinivasan, CEO and MD of India Cements, along with other board members, resigned yesterday, following UltraTech Cement's acquisition of a 32.72% stake in the company. The Aditya Birla Group-owned UltraTech, now the majority shareholder, has made India Cements its subsidiary. The resignations, including those of Srinivasan's family members Rupa Gurunath and Chitra Srinivasan, as well as V.M. Mohan, marks the end of the existing promoters' control over the South-based cement maker.
India's leading banks and financial institutions are embracing AI to improve services, cybersecurity, and efficiency. SBI, BoB, HDFC Bank, Axis Bank, and Poonawalla Fincorp are developing in-house AI capabilities, focusing on proprietary models to leverage sensitive data securely. SBI is seeking patents for its AI/ML innovations, avoiding reliance on Big Tech’s public models. BoB is extending AI and Generative AI across its operations. HDFC Bank uses AI for fraud prevention, customer service, and pre-approved offers while exploring private Large Language Models. Axis Bank is piloting AI-driven solutions for fraud detection in international payments. Experts see this as a shift from banks relying on tech firms to developing their own AI intellectual property. Shouvik Das and Shayan Ghosh report on how Indian lenders are taking AI more seriously than ever.
A string of blockbuster films, including Pushpa 2: The Rule, Bhool Bhulaiyaa 3, and Mufasa: The Lion King, has rejuvenated shopping malls and retailers in late 2024, following a sluggish start to the year. Mall operators report a high single-digit growth in sales for the December quarter, fueled by these hits and festive season demand. Lata Jha spoke to industry insiders who highlighted that, footfalls, which had dropped earlier in the year, doubled in this period, driven by cinema releases and festive shopping. Multiplexes, a key driver of mall traffic, spurred consumption across categories like apparel, food, and jewellery. However, inflation and reduced government spending during elections had earlier cooled retail demand.
As 2024 wraps up, it’s clear that some of the year’s biggest tech innovations fell short of their lofty promises. Generative AI faced mounting skepticism over its high costs, errors, and limited real-world adoption. India’s Smart Cities Mission struggled to deliver on its promise of true urban transformation. The metaverse failed to live up to its hype amid technical and economic challenges. Web3 and NFTs lost their early momentum due to regulatory hurdles and market volatility. Even quantum computing, while advancing, remains far from everyday application. Leslie D’Monte takes a close look at these tech letdowns from the year gone by.
As we head into 2025, wealth managers are zeroing in on sectors poised to thrive and those better avoided. Financial services stocks stand out as a top pick, with reasonable valuations and the potential for monetary stimulus to revive credit growth and stabilize margins. In contrast, metals face persistent challenges like sluggish global growth and overcapacity in China, making them a sector to steer clear of. Here’s what the experts recommend for the year ahead. Dipti Sharma writes on the top sectors to pick and avoid in the coming year.
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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, December 25, 2024. This is Nelson John, let's get started.
The Department of Pharmaceuticals recently penalised AbbVie Healthcare India for allegedly violating the Uniform Code for Pharmaceutical Marketing Practices. AbbVie reportedly spent ₹1.91 crore flying 30 doctors to Paris and Monaco under the guise of a medical conference, including lavish hospitality. The UCPMP, now mandatory, prohibits such expenses unless doctors are speakers at events. AbbVie argued the trips occurred before the March 2024 UCPMP mandate and were compensation for services, but the DoP rejected this and directed the company to spend the same amount on treating poor patients in government hospitals. Further probes by tax authorities and the National Medical Council may follow. Soumya Gupta explains the situation in today’s Primer.
Packaged goods makers are focusing more on rural markets. Companies like Zydus Wellness, Dabur India, and Godrej Consumer Products have launched affordable packs and brands tailored for these areas. Rural markets are experiencing more growth compared to urban ones, with FMCG volume growth in rural areas at 6%, double that of urban areas at 2.8%, according to NielsenIQ. Godrej Consumer has introduced smaller products like hair colour and incense sticks specifically for rural consumers. Dabur is enhancing its rural distribution and rolling out new innovations. Suneera Tandon reports that rural consumers are embracing branded commodities and dairy products more than before, boosting the FMCG sector, which gets 37% of its sales from these areas.
Renewable energy developers are racing against time to complete projects before the inter-state transmission system waiver, which allows free transmission for 25 years, expires on 30 June. This urgency drove a 43% jump in power capacity additions during April-November, with green energy leading the charge. The Central Electricity Authority reports that 14.9 GW of renewable energy—solar, wind, and small hydro—was added during the period, nearly double last year’s 7.53 GW. Developers are leveraging favourable solar module prices, revived wind turbine manufacturing, and strong investor interest to meet the deadline. However, industry groups are pushing for an extension of the waiver, Rituraj Baruah reports.
Smartphone addiction is pushing brands like Vivo, Oppo, and HMD to embrace digital detox as a selling point. Features like OnePlus’s Zen Mode and HMD’s Detox Mode help users disconnect by temporarily hiding distracting apps. Vivo’s study highlights the problem: parents average 5.5 hours and kids 4.5 hours of daily screen time, with 64% of children feeling addicted. Most kids even think their parents' phones should stick to basics like calling and messaging. Gulveen Aulakh reports on how brands are responding with smarter tools. HMD's Detox Mode makes taking a break easy, while Vivo’s devices offer focus modes and screen-time reminders. Feature phones are also being reimagined with essentials like UPI payments to encourage reduced smartphone dependency.
This December has been a tough one for markets, with a 1.7% drop so far, making it the second-worst in a decade after 2022’s 4% fall. Profit-booking, foreign investor outflows, and IPO-driven sector shifts have hit large-cap stocks, but experts see this as a chance for savvy investors to buy. FPIs have been pulling back, driven by a stronger dollar and valuation concerns, while IPOs have drawn much of the inflow. Yet, December has seen ₹20,071 crore in FPI inflows, signalling some recovery, writes Niti Kiran. Analysts expect IPO momentum to continue into 2025, potentially crossing ₹2 trillion, though inflation and global uncertainties may stir volatility. Historically, December has often been a positive month for markets, with gains in three out of every four years. Despite current challenges, local buying and January optimism could stabilize markets, keeping December’s reputation for resilience alive.
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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, December 24, 2024. This is Nelson John, let's get started.
In August, a U.S. federal judge ruled that Google's operations violated antitrust laws, particularly concerning its dominance with Search. India's stance isn't far from that of the U.S.'s. The Competition Commission of India has been actively investigating similar concerns and has already fined Google for monopolizing mobile apps and operating systems. Like the U.S., India's investigations are ongoing and have seen local publishers accusing Google of unfair practices related to ad revenues. Google's Search and Chrome are critical to the company’s financial health, bringing in over half of its quarterly revenue and boasting a 68% browser market share globally. Changes mandated by the courts could force Google to rethink its business strategies, especially if it has to stop making Google Search the default on devices, potentially opening the door for more competition. Shouvik Das explains how changes at Google could affect your experience of browsing the net on your phone.
As the year draws to a close, it’s the perfect time to reflect on some of the standout stories by our team of reporters, writers, and columnists. Explore the Best of 2024 through these curated collections, highlighting the best of the year, Click on the links in the show notes and read on!
In 2024, India's housing finance sector saw a significant jump in fundraising, pulling in $826.8 million—a massive leap from $82.6 million the previous year. This surge in investment is thanks to venture capital and private equity firms looking for stable assets amid rising housing demands. Experts are buzzing about the potential of affordable housing finance, especially as it expands beyond the metros into Tier 3 and 4 towns. Apoorve Goyal from Prosus highlighted the sector's growth prospects and low-risk allure, noting that even tech-first investors are now tapping into this market. Nithya Easwaran from Multiples pointed out the solid credit performance of these investments, even during tough times like the pandemic. With India’s home loan market projected to grow significantly in the next few years, fueled by urbanization and income growth, there's a lot of action expected in this space, Priyamvada C reports.
The thrill of live concerts in India has been marred by infrastructure woes, with recent performances by stars like Diljit Dosanjh and AP Dhillon underscoring the urgent need for improvement. Despite the excitement around shows and willingness of fans to pay up to ₹35,000 for a ticket, artists and promoters face challenges like inadequate venues, poor sanitation, and complex logistics, especially outside major cities. Diljit Dosanjh, expressing frustration, has even vowed not to perform in India until there's significant improvement in the concert setup. The main venues available—grounds, cultural centres, or stadiums—often lack the necessary facilities for high-caliber events. Obtaining permissions and licenses adds another layer of complexity, particularly when using stadiums, as regulatory restrictions often protect the pitches from damage. Pratishtha Bagai and Lata Jha report on how a lack of infrastructure is causing artists to stay away from the stage.
The effects of climate change are becoming increasingly tangible, affecting everyday life across the globe. In India, the impacts are stark, with severe heat waves, deadly floods, and persistent droughts making headlines in 2024. The year 2024 witnessed frequent and severe climate-driven disasters, such as the heat-induced fatalities during the Lok Sabha election and the catastrophic landslides in Kerala’s Wayanad. Such events highlight a grim reality: climate catastrophes are becoming the new normal, signaling an era of increased instability. The intensification of these disasters is evident, with the Indian Ocean's temperatures rising, fueling more powerful cyclones and altering rainfall patterns, directly impacting agriculture and water resources. Globally, 2024 is set to be the hottest year on record, with average temperatures surpassing the critical 1.5 degrees Celsius mark above pre-industrial levels. Bibek Bhattacharya delves deep into the problem of climate change, staring us in the face as we move on to 2025.
Indians are increasingly choosing premium air travel on metro routes, driven by rising aspirations and a rebound in corporate travel. Demand for business and premium economy seats has surged 50-60%, nearly doubling fares within a year, reports Daanish Anand. Business class comprises 5-6% of India’s air travel market, below the global average of 9.2%. Airlines like IndiGo and Air India are expanding premium offerings. However, soaring fares—now ₹45,000-85,000 domestically—have sparked concerns about affordability and competitiveness with international travel options.
Show notes:
2024: Year in Review
Best of 2024: Profit Pulse
Best of 2024: Plain Facts
Best of Vivek Kaul in 2024
Best of 2024: Mint Money
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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, December 23, 2024. This is Nelson John, let's get started.
Many investors have burnt their hands during the bull run of 2024. Take for example the Nifty India Defence Index, which saw a stunning 60% return this year. However, one of its main stocks is prone to volatility: Cochin Shipyard has dropped 30% in the past six months. Abhishek Mukherjee writes that sectors like pharmaceuticals and manufacturing have thrived due to post-COVID dynamics and strategic shifts, but many investors have fallen prey to herd behavior and overinflated narratives. Thus when experienced investors book their profits, sharp corrections occur — leading to widespread portfolio losses.
Indians are borrowing more money against their gold, and the Reserve Bank of India is worried. Regular defaults are leading to increased collateral auctions to recover these loans. Anshika Kayastha writes that Muthoot Finance and Manappuram Finance reported significant auction amounts in recent quarters. This reflects a shift towards standardized auctioning policies in compliance with new regulations. The RBI has tightened its rules: there are now limits on cash disbursements for gold loans and requiring a review of lending practices.
When companies apply for any incentive scheme by the central government, they are supposed to invest some money to receive further subsidies. However, about 12 companies will be excluded from the government's production-linked incentive scheme for failing to meet these norms. Manas Pimpalkhare and Rituraj Baruah report that these companies include state-owned Bharat Heavy Electricals or BHEL, and Kia Motors India. Kia had expressed intent to withdraw from the scheme as its manufacturing plans have not materialised. The PLI-Auto scheme had an estimated outlay of 26,000 crore rupees over five years, but only 500 crore has been claimed so far.
After a long bout of lean hirings, the IT sector is looking better. Accenture's recent hiring of 49,000 employees globally over six months indicates a positive growth outlook moving forward. Jas Bardia writes that this would bode well for Indian IT companies like TCS, Infosys, and HCL Technologies as well. While growth for Indian IT companies has been slow, analysts suggest that recovery may be on the horizon. This recovery will be aided by a potential increase in demand following interest rate cuts and decision-making in the US under the upcoming Trump administration
Everyone in India's startup ecosystem is looking for the next big bet. Shelley Singh writes that deep tech might be it. This field is rooted in science and engineering and addresses major global challenges. It covers sectors such as space tech, biotech, and climate tech, and focuses on long-term goals. However, challenges such as the need for a supportive ecosystem involving academia, government, and investors remain abundant. Moreover, deep tech firms need strong intellectual property and scalable business models as well.
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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, December 20, 2024. This is Nelson John, let's get started.
Jan Aushadhi Kendras, part of a government-backed initiative to provide affordable medicines, have been on an upswing, hitting sales of ₹1,000 crore this year. These centres have become so incredibly popular that some private firms are now getting in on the action. Take, for instance, a pharmacy in Mumbai that's named after Jan Aushadhi but isn't actually part of the official scheme. It cleverly uses the Jan Aushadhi brand to draw in customers looking for low-cost meds, even though it is a for-profit entity and sells branded generics, too. This situation highlights a broader trend in the market, writes Jessica Jani. While the official Jan Aushadhi Kendras are booming with their highly affordable generics, there's a growing space for hybrid centres like this Mumbai pharmacy. They offer both cheap generics and higher-margin branded drugs, ensuring no customer leaves empty-handed.
Micromax has teamed up with Taiwan's Phison to carve out a niche in the high-end storage market with a new joint venture, MiPhi. The venture, with 55:45 split favouring Micromax, has already started manufacturing solid-state drives (SSDs) at Micromax's facility in Greater Noida. Speaking with Mint’s Gulveen Aulakh, Micromax co-founder Rahul Sharma said he was bullish about leveraging Phison's technology to cut GPU costs dramatically, aiming to slash the price to just one-tenth of current rates. This bold move is expected to shake up the AI sector not just in India but other strategic markets as well. MiPhi plans to capitalise on Micromax’s strong Indian client base and Phison’s cutting-edge NAND storage solutions to target a diverse range of industries. While the specifics of the facility’s production capacity remain under wraps, the focus will clearly be on sectors such as automotive, IoT, and mobile devices, among others.
Your next packet of biscuits may feel a bit lighter because of the sneaky tactic known as shrinkflation. This trend, along with outright price hikes, is on the rise as companies such as Britannia, Parle, ITC, and Godrej struggle with rising costs of ingredients such as wheat and oil. This is pushing up prices of everything from biscuits to soaps by as much as 7%, industry insiders told Suneera Tandon. Rajneet Singh Kohli of Britannia said while the company plans to increase prices by 3-5% over the next few quarters, it will try to absorb some of the increased costs. This may mean smaller product sizes rather than higher prices. Meanwhile, Parle has already started adjusting prices and pack sizes, and expects to roll out 5-7% price increases soon. India saw a similar phase of shrinkflation in 2022, which ended in mid-2023 as ingredient costs normalised. However, with the current economic pressures and persistently high inflation, FMCG companies are bracing for a challenging period ahead.
India saw a dramatic surge in its trade deficit in November. It hit a record $37.84 billion because of a four-fold increase in gold imports to nearly $15 billion owing to higher demand during the festive and wedding seasons. This surge in imports, alongside a 4.9% drop in exports, widened the deficit significantly. The substantial rise in gold purchases and a decrease in petroleum export earnings fueled the gap, explains Dhirendra Kumar. Merchandise exports dipped to $32.11 billion from $33.90 billion last year, while imports rose to $69.95 billion from $54.48 billion. This stark imbalance raises concerns about the slowing of India's manufacturing sector, which seems increasingly reliant on imported components and raw materials. The decline in exports suggests that domestic manufacturing struggles to compete globally thanks to high logistics and production costs, indicating a pressing need to bolster India's manufacturing capabilities.
On December 18, Sebi greenlit a slew of amendments aimed at refining operations, safeguarding investors, and boosting market-participant efficiency, especially targeting SMEs, merchant bankers, and mutual funds. Among the most anticipated decisions is the overhaul of the SME IPO framework. This reform is pivotal for small and medium enterprises seeking to tap public capital markets. Sebi has now stipulated that SMEs must demonstrate a minimum operating profit of ₹1 crore in two of the previous three financial years before they can file for an IPO. This aims to ensure that only financially robust SMEs can access public funding, thus safeguarding investors. The establishment of a Past Risk and Return Verification Agency marks another significant stride. This new body will authenticate the risk-return metrics provided by financial services providers such as investment advisors and research analysts, ensuring investors receive reliable and standardised data. Mint’s Neha Joshi breaks down all the changes and amendments from the Sebi meeting.
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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, December 19, 2024. This is Nelson John, let's get started.
Adar Poonawalla's recent dive into Bollywood, in which he snagged a 50% stake in Karan Johar’s Dharma Productions for a cool ₹1,000 crore, isn’t just a one-off. It hints at a bigger potential shift across Bollywood. Poonawalla, known best for producing vaccines, teaming up with a giant like Dharma Productions could just set off a trend. Industry insiders weren’t taken aback by this development, as Dharma had been actively seeking fresh funding amid a string of less-than-stellar box office returns and cooling interest from streaming platforms. Before Poonawalla stepped in, giants such as Saregama and Reliance Industries were also in the running, highlighting the attractiveness of film studios as potential investment opportunities for diverse business conglomerates. This move could encourage more such strategic investments, writes Lata Jha. It could also reshape how Bollywood studios align themselves with broader business interests, potentially leading to a wave of revitalisation that could impact content creation, distribution and marketing strategies across the industry.
Despite allegations of anti-competitive practices by Zepto, Instamart and Blinkit, the Competition Commission of India is unlikely to launch an investigation into quick commerce companies. Sources told Dhirendra Kumar and Gireesh Chandra Prasad that the information provided to CCI didn’t convince them there was any anti-competitive behaviour that warranted further examination. This booming sector, projected to hit $6 billion in sales by 2024, seems too competitive and beneficial to consumers for the CCI to take action on its own. Meanwhile, concerns persist among traditional retailers, represented by the All-India Consumer Products Distributors Federation. They claim the platforms’ allegedly predatory pricing and inadequate enforcement of FDI rules could threaten traditional retailers, and are urging a closer look to prevent potential monopolistic outcomes.
Sebi's tightening of rules in India's F&O market aims to cool intense retail trading driven by expectations of quick profits and the gamification tactics of brokerages. Measures such as increasing index contract sizes to ₹15-20 lakh and adding a steep 14% loss margin for contract sales on expiry days kicked in on November 20. More rules such as upfront collection of option premiums by brokerages are expected to take effect in February 2025. For retail investors, these higher barriers mean trading in F&O will require more money and a deeper understanding of the markets—essentially pushing out those looking for quick, easy profits. Brokerages, particularly discount ones such as Zerodha and Angel One, could take a hit to their bottom lines as reduced volumes will force them to rethink pricing or diversify their services. Abhinanda Saha takes a look at this new era in India’s F&O market.
In India, companies are stepping up their game on diversity hiring for roles ranging from software development to mechanical engineering. They're not just looking to fill positions – they're trying to show they're progressive and uphold strong corporate governance. From big names such as Robert Bosch GmbH and IBM Corp to Noida's Coforge Ltd, there's a growing trend of including people from diverse backgrounds, including those who are differently abled. For example, over at R.V. College of Engineering in Bengaluru, they've already recruited 26 students under diversity categories this year. This push towards diversity isn't just about doing good; it's also about looking good, reports Jas Bardia. Companies are increasingly aware that strong diversity practices boost their brand and appeal to investors who value robust environmental, social and governance (ESG) standards. This is in stark contrast to the US, where some big companies and universities are pulling back on their diversity initiatives, wary of running afoul of anti-discrimination laws.
TVS Credit is in talks to buy Avendus Capital from KKR, aiming to boost its financial services, sources told Ranjani Raghavan. It’s considering funding the purchase through internal accruals and may consider debt later. KKR, which invested $120 million in Avendus in 2015, appointed Rothschild after Nomura withdrew from facilitating the sale. Avendus, known for its strong investment banking and startup advisory services, could be valued between $500 and $700 million for a 70% stake. Serious bidders include Mizuho and Carlyle, but a final decision is likely to be pushed to January owing to the holidays. A successful bid could significantly expand TVS’s financial-sector footprint, adding investment banking and asset management to its portfolio.
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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, December 18, 2024. This is Nelson John, let's get started.
The Indian government has unveiled a 3 billion dollar incentives plan to stimulate the creation of electronics brands and enhance private research & development spending in the sector. The initiative is aimed at attracting investments and generating business worth over 15 billion dollars. The goal is to shift from merely assembling devices, which leaves most profits with foreign firms, to manufacturing core components domestically and owning patents for commercially sold devices. Historically, local brands such as Onida, Karbonn, Lava, and Micromax have struggled against international competition due to a lack of innovation. Shouvik Das explains how investing in R&D could revitalise Indian consumer electronics brands by fostering homegrown innovation and enabling them to compete globally.
Aditya Birla Group and Adani Group, which were initially interested in acquiring Akzo Nobel NV's Indian paint operations, did not finalize their discussions, leading to a shift in potential bidders. Now, Indigo and JSW are negotiating – p otentially with private equity investors such as Warburg Pincus, TPG, Carlyle, and CVC – for a bid valued between 2.1 and 2.5 billion dollars. If completed, it could be the largest in India's paint industry, in which Akzo Nobel, which owns brands such as Dulux and Sikkens, holds a 5-6% market share. The decorative business, comprising two-thirds of Akzo Nobel's valuation, is a key attraction, Anirudh Laskar and Sneha Shah report. Pidilite Industries has proposed a share swap deal, while others suggest an all-cash transaction.
JSW Group, Stonepeak Infrastructure Partners and Waaree Energies have placed their binding offers for Enel Group’s renewable venture in India, eyeing a deal that may value the company’s equity between 350 and 400 million dollars. Tack on the debt and we're talking of a total enterprise value north of 500 to 550 million dollars. The assets in play include 760 megawatts of wind and solar installations that are already up and running, plus a promising pipeline of projects that could add another 2 gigawatts. Enel Green Power India has been on the block since last year, and with these bids in, a deal could be wrapped up by the end of the fiscal year, insiders told Sneha Shah.
The Election Commission of India looks set to retain its power to postpone assembly polls, even as India shifts towards a 'one nation, one election' system. This power is enshrined in the proposed Constitutional amendment introduced in the Lok Sabha, Manas Pimplakhare reports. The amendment aims for simultaneous elections across all levels of government but allows the ECI to seek deferrals from the President under special circumstances, a change from the current rules, under which the governor decides. The move to synchronize elections is aimed at improving financial efficiencies and reducing policy paralysis. However, if the Lok Sabha or state assemblies are dissolved prematurely, the incoming government will serve only the remainder of the term, maintaining a fixed election cycle every five years. Critics doubt the bill will pass soon, as the current government lacks the majority needed to push the amendment through.
The Hindi version of Allu Arjun's Pushpa: The Rule-Part 2 has been a blockbuster hit, crossing the 500 crore rupee mark and giving single-screen cinemas in north India a much-needed boost. However, cinema owners are worried. After the Pushpa 2 wave, there's no big commercial hit in sight for a while, and sustaining their businesses looks tough. They are pinning their hopes on Salman Khan’s Sikandar, which is set to release on the Eid weekend in March. Cinema owners Lata Jha spoke to called 2024 one of the worst years for these businesses, especially those in small towns. Themes such as nationalism aren’t pulling in crowds like they were before, and movies that resonate with the common man, such as Pushpa 2, are rare. With Bollywood not churning out many mass-market hits, and the popularity of OTT platforms growing, the future looks challenging for single screens.
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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, December 17, 2024. This is Nelson John, let's get started.
Sanjay Malhotra recently took charge as the 26th governor of the Reserve Bank of India, and he's facing some tricky challenges right off the bat. The Indian economy, which had been growing robustly at over 8% just last year, has now slowed to a growth rate of 5.4% in the second quarter of FY25. This slowdown is part of what's shaping up to be a period of stagflation —in which slow growth is coupled with high inflation, complicating policy decisions considerably. N Madhavan explains that if Malhotra decides to cut interest rates to spur growth, he risks increasing prices further, with inflation already above the RBI’s target of 4%. On the flip side, maintaining the current interest rates could slow economic growth even more.
Ustad Zakir Hussain is celebrated not just as a tabla virtuoso but as a magician of music. Hussain transformed every performance into a vibrant narrative, weaving stories through the rhythmic syllables of the tabla. Descended from the esteemed Ustad Alla Rakha, and known for his innovative collaborations across diverse genres and cultures, Hussain transcended musical boundaries. Beyond his global acclaim and numerous accolades, his true legacy lies in the joy and passion he brought to his art, making his music a universal language of emotion and storytelling. In this poignantly penned tribute, Raja Sen celebrates the maestro’s legacy.
As the year winds down, villa rental companies are gearing up for a busy season, thanks to Christmas and New Year's Eve landing smack in the middle of the week. Devendra Parulekar from SaffronStays told Varuni Khosla that because these holidays fall on weekdays this year, people are extending their stays. Instead of the typical two-night stay, many are making bookings for three or four nights, giving occupancy rates a nice bump. Ritwik Khare from Elivaas noticed that bookings really picked up after Diwali, especially from Gujarati travelers, which helped balance out a slower October. But in Goa, there's a bit of a squeeze on nightly rates because the villa supply has shot up by as much as 60-70% over the past year. That's a lot of new options for travelers!
When Pune-based Persistent Systems crossed $1 billion in revenue in FY23, founder Anand Deshpande credited the achievement to CEO Sandeep Kalra and his team. Kalra, who joined in 2019, revamped the company's strategy, focusing on key sectors and partnerships with major vendors such as Microsoft and Amazon Web Services, and boosting revenue from $501 million in FY20 to $1.18 billion in FY24. Similarly, Coforge saw significant growth under CEO Sudhir Singh, increasing its CAGR to 16% by FY24. These examples highlight how strategic leadership changes at mid-tier tech firms such as Persistent and Coforge are driving rapid growth and helping these companies compete effectively in the IT services industry. Shelley Singh takes a deep dive into how strategic leadership changes at mid-tier tech companies are changing the game.
Global investment firm Actis is considering selling its Indian renewable energy platform, BluePine Energy, due to increased investor interest in clean-energy assets. The company, part of a larger movement in the renewables sector, is potentially valued around $1 billion, Sneha Shah and Nehal Chaliawala report. BluePine, which boasts of about 2.6 gigawatts of solar and wind assets in India, could benefit from Actis's experience in acquiring significant renewable assets. This potential sale highlights the dynamic market activity, which includes other notable assets and acquisitions, reflecting a robust interest in sustainable investments amid India's push for clean energy.
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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, December 16, 2024. This is Nelson John, let's get started.
If you're considering flying between India's major cities at the end of the year, you're in luck—airfare prices have significantly dropped. Data from ticket booking platforms indicates that airfares on key metro routes have decreased by as much as a third compared to last year. For instance, flights between Chennai and Kolkata have seen the largest reduction, with fares down by 28%, followed by Kolkata to Bengaluru with a 27% drop. This decrease in prices is partly due to lower demand for metro-to-metro travel during the holiday season, compounded by the economic slowdown which has affected spending habits. However, if you're planning to head to smaller towns or popular holiday destinations, expect to pay more. Daanish Anand reports on the dwindling airfare between metro cities, in today’s Primer.
The Indian government is considering a fresh capital infusion for its struggling public sector general insurers in the next fiscal year to bolster their operations and help them meet regulatory standards. This move, potentially involving ₹4,000-5,000 crore, is aimed at improving the solvency ratios of National Insurance, United Insurance, and Oriental Insurance, which currently fall well below the mandatory threshold. The solvency ratio, critical for insurers, measures the excess capital they hold over potential claims, with a regulatory minimum set at 150%. Despite some intermittent profits, these insurers have generally underperformed, with solvency ratios lingering in the negatives by the end of FY24. The government's potential capital support is contingent on the insurers demonstrating consistent improvement in financial metrics, Subhash Narayan and Rhik Kundu report.
In the branding world, IndiGo’s squabble with Mahindra and Mahindra over the "6E" label is a classic case of how a simple code can evolve into a significant brand asset. For over 16 years, IndiGo has used "6E" more than just as a flight code—it's become a key part of their brand identity, even cleverly marketed to sound like "sexy." The issue popped up when Mahindra decided to use "6e" for its new electric SUV. This led to a debate over trademark rights across different product classes—IndiGo’s trademark is registered for transport under Class 39, not vehicles - which falls under Class 12. Legal experts Gaurav Laghate spoke to, suggest that if IndiGo had also registered in Class 12, they might have had a stronger case. As it stands, the chance of customer confusion seems low. As both companies wait for a legal resolution expected next year, with Mahindra holding off on using "6e”.
After clinching the title as the youngest World Chess Champion ever, Gukesh Dommaraju's fame has quickly caught the attention of marketers looking for fresh faces to endorse their brands. Over just one weekend, companies from various sectors, including FMCG and gaming, were keen to align with the chess prodigy, reports Varuni Khosla. Gukesh now commands an endorsement fee ranging from ₹70 lakh to ₹1 crore annually. His historic victory over Ding Liren in Singapore not only broke a record previously held by Garry Kasparov but also elevated him to a status comparable to chess legend Viswanathan Anand. His triumph has rekindled interest in chess as a sport that's both intellectually rigorous and "cool," shifting its public perception significantly.
In a flourishing sector, India's table grape growers are reaping significant benefits, with profits soaring in good crop years. The country has risen to become one of the top five global exporters of table grapes, finding a strong market in high-standard international supermarkets. This success is primarily driven by meticulous adherence to quality standards demanded by Western consumers, such as specific berry sizes and sugar content. In the fiscal year 2023-24, India exported grapes valued at ₹3,461 crore, marking a 36% increase year-on-year and a significant growth over the past decade. Nashik, Maharashtra, has been pivotal in this expansion, contributing nearly half of the export volume, thanks to its conducive climate and expertise in viticulture. Sayantan Bera writes about how the grapes of Nashik, have been conquering the world.
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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, December 13, 2024. This is Nelson John, let's get started.
The buzz around Google's new quantum computing chip, Willow, is huge because it represents a significant step in quantum computing technology, which could potentially revolutionize several industries. Unlike traditional computers, which represent data as either a 0 or 1, quantum computers use qubits that can represent both at the same time. This allows quantum computers to process vast amounts of data much faster than the best supercomputers. However, adding more qubits usually introduces more errors, making the system less reliable. Willow is exciting because it reportedly reduces these errors even as it adds more qubits. Despite this breakthrough, we're not quite at the point where quantum computers are ready for everyday use. They are still very much in the experimental stage, primarily useful for specific types of computations like cryptography and complex modelling. Leslie D’Monte explains how Google’s new chip will affect computing in the age of AI.
India's retail investors are seeing a significant shift in their options trading habits due to recent regulatory changes aimed at minimizing widespread losses. Following new rules by Sebi, which limit the number of weekly expiries to just two, trading volumes have seen a marked decrease, Ram Sahgal reports. The first week under this new regime saw a 30% drop in the number of index options traded—down from 3.04 billion to 2.14 billion contracts. Despite the drop in contracts, there was a slight increase in the total value of these trades, thanks to a surge in activity right before a major monetary policy announcement. This kind of spike isn't new; similar increases in trading volume have occurred during other significant market-moving events in the past.
The quick commerce scene in India is getting a fresh twist with startups like Medino's, Medstown, and Plazza jumping into the fast medicine delivery game. They're delivering meds in 30 minutes, targeting smaller cities, and are up against big names like Flipkart and Swiggy. Taskar's CEO, Prasoon Pal told Samiksha Goyal and Sowmya Ramasubramanian that he launched Medino's to specialize in speedy deliveries, promising meds in 30 minutes or they're free. Aman Priyadarshi, after leaving Zomato, saw a gap in the market and started Plazza in Bengaluru for super quick deliveries, aiming to save customers the hassle of traditional pharmacy visits. Syed Hussaini of Medstown has fine-tuned their delivery process over two years and began speedy service in Hyderabad this September. As these companies look to expand—Medino’s to 22 cities and Medstown to 20—they're also on the hunt for funding to grow even bigger.
As India gears up for a broader 5G rollout, telecom operators are shifting their focus from the bustling metros to the burgeoning tier 2, 3, and 4 regions, as well as rural areas. Gulveen Aulakh writes about the data from Bernstein Societe Generale Group revealing that consumers in tier 2 cities are using about 35-40 GB of data per capita each month—approximately 15-20% more than those in metro areas. This usage spikes even higher during events like the Indian Premier League. In tier 2 cities such as Jodhpur, Ranchi, and Lucknow, 5G penetration is quickly catching up to that of tier 1 cities, with penetration rates of 35-40%. This burgeoning demand is prompting telecom companies like Bharti Airtel and Reliance Jio to expand their network infrastructure into these less urban areas. The focus on non-metro regions is not just about covering more geographic territory but also capitalizing on the rapid revenue growth seen in these areas.
After the public offer for ‘PropShare Platina’ opened on December 2, Bengaluru entrepreneur Sandeep Gupta was quick to show interest. Seeing real estate as a lucrative investment, he was drawn to the new scheme from Property Share, aiming to raise ₹353 crore to acquire and lease back office space in Bengaluru. This scheme, part of India’s first small and medium real estate investment trust (SM Reit), offers a more targeted investment in specific properties compared to traditional Reits. SM Reits, regulated by the Securities and Exchange Board of India (Sebi), have a lower threshold for property value and allow investments starting from ₹50 crore up to ₹500 crore. This makes them accessible to ventures like PropShare Platina, focusing on singular, income-yielding properties. These trusts are seen as a way to organize and boost investments in India's fragmented office market, which is rich with Reit-worthy spaces. Madhurima Nandy takes a detailed look.
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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, December 12, 2024. This is Nelson John, let's get started.
Adani Group is navigating critical financial moves for its renewables arm, Adani Green Energy Ltd (AGEL), as it seeks to refinance a $1.1 billion loan maturing in March 2025. Having shelved plans for a $1.2 billion overseas bond issuance due to volatile market rates, the group is now engaging with a mix of domestic and international banks and investors. The aim is to secure a private placement deal offering more favorable terms than the current dollar markets, reports Anirudh Laskar. This effort isn’t solely about raising new funds—it’s also about optimizing existing debt. Adani Group plans to restructure its $3.5 billion credit facility, with an eye on expanding it to over $5 billion. These financial maneuvers come as the group faces legal challenges in the US, where Gautam Adani is embroiled in allegations of bribery tied to contract awards for AGEL.
The Indian rupee has been on a turbulent ride in 2024, hitting several record lows against the US dollar. This week, it touched 84.83 per dollar, marking a sharp departure from its typically steady trajectory. Markets are abuzz following the departure of Reserve Bank of India Governor Shaktikanta Das, known for his hawkish monetary stance. His successor, Sanjay Malhotra, has sparked speculation of potential interest rate cuts, adding pressure on the rupee as traders anticipate a narrowing of the US-India interest rate gap. Adding to the uncertainty, Donald Trump’s return to power in the US brings expectations of pro-growth policies that could further bolster the dollar, potentially widening its strength against global currencies, including the rupee. Meanwhile, India’s position as a net importer keeps dollar demand consistently high, weighing on the rupee’s performance. Abhinanda Saha explores what lies ahead for the rupee in 2025.
November saw e-way bill generation drop to a five-month low, following October's record high. Businesses generated 101.8 million e-way bills, a notable decline from October’s 117.2 million but still higher than the 87.5 million recorded in November last year, according to GST Network data. The dip likely reflects a post-festive slowdown, as businesses ease off after clearing inventories during the high-demand festival season. E-way bills, a key indicator of goods movement across India, provide valuable insights into economic activity and consumption trends—critical data as the government gears up for the FY25 Union Budget. Meanwhile, GST collections in November saw a modest year-on-year rise to ₹1.82 trillion, though slightly below October’s ₹1.87 trillion.
Google unveiled its latest AI innovation, Gemini 2.0, a next-generation model designed to revolutionize how businesses handle complex queries and tasks. This announcement, detailed in a blog post by Google and Alphabet CEO Sundar Pichai, marks a significant leap toward creating more capable and "agentic" AI models. These models are not just reactive but can proactively understand context, make decisions, and act on them, akin to a universal assistant with multimodal capabilities, including handling images and audio directly. The introduction of Gemini 2.0, which began testing with select developers on its launch day, aims to streamline operations in domains like pharmaceuticals and e-commerce by automating complex tasks, Shouvik Das reports. For instance, in HR, it can analyze job applicants more qualitatively. This move by Google seems to be a strategic play to catch up with Microsoft, which currently leads in enterprise AI adoption. During its launch, Google revealed some impressive benchmarks, showing Gemini 2.0 as nearly 9% more effective than its predecessor in certain test
IPO frenzy in India has reached unprecedented levels in 2024, with investors pouring a record ₹1,34,345 crore into 76 public offerings. Big-ticket names like Hyundai Motor India, Swiggy, and NTPC Green led the charge, pushing this year’s total past the previous high set in 2021 and significantly ahead of last year’s tally. The surge is underpinned by a bullish stock market, with the Sensex gaining over 16% in the past year. Retail and institutional investors are flocking to equities, lured by the promise of strong returns, reports Priyamvada C. For companies, especially startups, this robust appetite for IPOs presents an opportune moment to leverage favourable market conditions and secure capital.
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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, December 11, 2024. This is Nelson John, let's get started.
Lenovo has been quite adept at navigating the business landscape in India, avoiding the regulatory scrutiny faced by Chinese companies in India. But how? A big part of its strategy was to jump into local manufacturing in 2005, well before many others. This early start not only helped it build a solid trust base but also positioned it as a committed player in India’s economic scene, not just another overseas company trying to tap into a lucrative market. Lenovo’s approach to being a global brand rather than just a Chinese one has also played well for it. It has been very careful about compliance and made it a point to pay taxes diligently, which clearly sets it apart in a market where scrutiny around Chinese investments has intensified. Gulveen Aulakh takes a detailed look at the Chinese tech giant’s strategy for survival in the Indian market.
The longstanding friction between Shapoorji Pallonji Group and Tata Trusts continues, even after the passing of Ratan Tata. SP Group, holding an 18.4% stake in Tata Sons, aims to renegotiate its loans by using these shares as collateral to attract new investors—a move not sanctioned by Tata Trusts. Tata Sons, having transitioned to a private company in 2017, restricts share transfers without approval, a condition reinforced by the company’s Articles of Association. In a mail to Mint’s Varun Sood, Siddharth Sharma, CEO of Tata Trusts, emphasized that Tata Sons shares should not be used as collateral, highlighting the restrictive nature of share transfers after the company's privatization. This stance is supported unanimously by Tata Trusts' executive committee, indicating a continuation of the group's traditional governance approach even under the new chairmanship of Noel Tata.
The long-standing financial dispute involving the National Spot Exchange Ltd (NSEL) and its investors has taken a new turn. The NSEL Investor Action Group (NIAG) recently withdrew their support for a proposed one-time settlement (OTS) with 63 Moons Technologies Ltd, complicating the decade-long effort to recover investors’ dues owed to investors since NSEL's collapse in 2013. Neha Joshi reports that the decision came after 63 Moons attempted to access ₹300 crore from assets that were previously attached, ostensibly for operational expenses, without a prior consultation with the NIAG. This move was perceived by the NIAG as a breach of the foundational agreements of the settlement talks, prompting them to withdraw their endorsement for the settlement offer, which initially aimed to distribute ₹1,950 crore to investors—about 42% of the total ₹4,650 crore claimed by investors. However, the NSEL Investors Forum (NIF) has claimed that it has secured the support of investors, having approximately 64.5% in value of the outstanding claims, and it is confident that it will secure the majority consent for the settlement.
HMD's new 'Fusion' smartphone is stirring curiosity with its promise of modularity, primarily focusing on easy swaps for its display and back panel. Unlike fully modular phones that allow changes to core performance elements, the Fusion offers customizable back panels with specific functionalities, like an LED light ring for creators and a gaming controller, Shouvik Das explains. This level of modularity is moderate but intriguing, especially as the global regulatory environment shifts towards stronger right-to-repair laws. Modular phones have been around in various forms, like Google's ambitious but ultimately shelved Project Ara, and others like LG's G5 and Motorola's Z2, which incorporated modular aspects to enhance flexibility and potentially extend the device's lifespan. However, these products generally didn't achieve mass-market success due to high costs, limited third-party accessory support, and an overall market preference for more integrated, seamless smartphone experiences.
As celebrities increasingly face the brunt of defamatory content circulated by trolls, they are turning more toward legal measures to protect their image. High-profile figures like AR Rahman, Salman Khan, and Akshay Kumar have recently threatened or initiated defamation suits against media platforms that host damaging content about them. This trend highlights a growing concern among celebrities about the unregulated nature of social media, where unchecked dissemination of content can rapidly tarnish reputations, Lata Jha reports. Legal experts point out that celebrities are especially vulnerable to defamation due to public curiosity about their personal lives. Platforms like social media amplify these issues by allowing rapid spread of unverified information, often without the traditional checks of editorial oversight. This has led to a rise in legal actions by celebrities not just in India but globally, reflecting a proactive stance against damaging allegations.
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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, December 9, 2024. This is Nelson John, let's get started.
Sanjay Malhotra, a seasoned bureaucrat from the Rajasthan cadre, is set to steer the RBI following his appointment as the new governor. His tenure starts just as Shaktikanta Das wraps up his six-year term. Malhotra, known for his balanced approach to policymaking and administration, has been instrumental in spearheading significant tax reforms as the revenue secretary since 2022. His efforts included simplifying income tax processes, reducing litigation, and combating fake GST registrations. His experience extends beyond finance as he has led initiatives in power, mining, and IT sectors. Notably, as CMD of REC Ltd, he navigated through a power crisis in 2021, showcasing his ability to manage challenging scenarios. Now, as he transitions to the RBI, Malhotra brings a deep understanding of fiscal matters and a track record of advocating for economic growth over mere revenue collection. This change comes at a critical time, with India facing persistent inflation challenges and global economic shifts.
India is rolling out a new scheme called 'One Nation, One Subscription' (ONOS) to provide free access to over 13,000 international scientific journals to students and researchers across the country. This move, set to start next year, involves a substantial investment of about ₹6,000 crore over three years, making costly academic resources widely accessible without charge. Managed by the newly established Information and Library Network (INFLIBNET) under the UGC, the scheme will include top publishers like Wiley, Elsevier, and Springer Nature, covering subjects from health to materials science. This initiative not only aims to bridge the gap in academic resources, especially benefiting those in tier-2 and tier-3 cities, but also addresses the issue of academic piracy. Soumya Gupta explains the initiative in today’s Primer.
India is gearing up to boost its trade with BRICS countries by rolling out customs perks for trusted merchants through mutual recognition agreements, or MRAs. This move will streamline customs clearances, meaning quicker processes and fewer headaches for traders on both sides. Already set up with Russia, India's next stops include South Africa and Brazil, with China potentially in line too. These agreements are super handy for smoothing out trade bumps. They mean faster customs for approved businesses, less time spent on inspections, and quicker tax refunds. Gireesh Chandra Prasad reports on the changes, which are about making trading across borders as swift as possible, helping Indian goods become more competitive in these markets.
The Delhi High Court recently addressed a trademark dispute between Mahindra Electric Automobile and Indigo’s parent InterGlobe Aviation. Mahindra agreed not to use the "6E" trademark for its upcoming electric car, the BE 6, during the ongoing lawsuit filed by IndiGo, opting to rename it from BE 6E to BE 6. IndiGo has refrained from seeking an interim injunction against Mahindra in response to this undertaking. IndiGo alleges that the "6E" trademark is central to its brand identity. The airlines registered "6E" under various classes related to advertising, transportation, and promotional services. On the other hand, Mahindra, which had initially secured trademark approval for "BE 6E," argues that its mark is distinct given its classification in the motor vehicle category and that it does not conflict with IndiGo’s airline services. Mahindra stresses that "BE" stands for its "Born Electric" series, and it plans to contest IndiGo's claims vigorously.
Home decor startup Livspace, based in Bengaluru, has been grappling with some customer service challenges, with a number of customers voicing their dissatisfaction online. Despite this, the company reports that a majority of their customers still end up having a positive experience. Recognizing the issues, Livspace is actively working on improvements, particularly since quality concerns can significantly impact its reputation, especially when it comes to big-ticket investments like home interiors. The company last raised substantial funding in 2022, amounting to $180 million, which set high expectations given the company’s valuation at the time. To better manage costs and control quality, Livspace has shifted its strategy. They've moved away from using outsourced designers, bringing nearly all design work in-house. This not only helps maintain quality but has also allowed them to cut down on heavy discounts they were offering previously.
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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, December 9, 2024. This is Nelson John, let's get started.
India is gearing up for a significant initiative aimed at closing the gap between the skills students learn and what the job market needs. The Prime Minister Internship Scheme, set to launch soon, plans to offer a year-long internship to 10 million youths over five years, partnering with some of the country's top companies. Devina Sengupta explains how this initiative could potentially turn interns into a workforce ready to meet industry demands right from day one. Here’s how it works: Companies from sectors like manufacturing and IT, which traditionally face the 'unemployability' challenge due to outdated college curriculums, will provide internships. The scheme has already secured 125,000 internship spots from about 280 companies for candidates with various educational qualifications. However, pulling off a program of this scale isn't without challenges. It requires a long-term commitment from both the government and companies.
India is gearing up for a transformative boost in infrastructure with an ambitious plan aiming to channel Rs 100 trillion into the sector over the next five years. This major initiative is expected to become a hallmark of the Modi administration's third term, focusing on enhancing ports, airports, roads, and utilities to world-class standards. This massive infusion is set to integrate rural and urban economies more closely, reducing travel and logistics costs, spurring growth, and improving living standards. The plan includes expanding existing infrastructure and adding new projects, especially in key areas such as transportation and utilities. Gireesh Chandra Prasad and Subhash Narayan report on the grand infrastructure plans under works in the Modi 3.0 administration.
India's $254 billion IT services industry is bracing for a major shift due to generative AI, which is expected to put pricing pressure on software app creation and customer support services. These two areas, crucial for companies like Tata Consultancy Services, Infosys, and others, represent about 40% of the industry’s revenue. With significant parts of this business up for renewal next year, the advent of AI tools that streamline coding and customer interactions poses a potential drop in revenue from these contracts. Jas Bardia and Varun Sood spoke to analysts who predict that as contracts come up for renewal, clients will likely negotiate for lower prices, reflecting the cost efficiencies driven by AI technologies. This shift could reshape the traditional IT services model, which relies heavily on human resources and might lead to reduced hiring and a reevaluation of how projects are staffed and executed.
Social media influencers like Samay Raina are struggling with copyright infringement, which affects their ability to make money from their content. Raina, who has millions of followers on YouTube, shared episodes of his popular show ‘India’s Got Latent’ behind a paywall. However, some users re-uploaded this content for free, causing him to lose potential revenue. Although YouTube makes it relatively easy to remove unauthorized content with copyright strikes, handling infringements on other sites is tougher, reports Pratishtha Bagai. Legal actions are available but often avoided by creators due to their complexity and cost—most prefer the simplicity of a quick online strike. Interestingly, while this unauthorized sharing cuts into their earnings, it can also unexpectedly boost their visibility and following.
Retailers, particularly D2C brands, are increasingly leaning into flash sales throughout the year to boost revenue and stay visible. Sowmya Rmasubramanian spoke to industry insiders who highlighted that these sales, especially around Black Friday, are significantly bumping up monthly sales figures, pulling in as much as a fifth of November’s total sales for some brands. It's not just the big events anymore. Sales are popping up for all sorts of occasions, like Valentine’s Day and even monsoon season, turning any time into a potential shopping spree. These flash sales are great for snagging new customers who might be more willing to try new products when prices drop, even if they’re just dipping their toes in.
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