Episódios
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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, November 5, 2024. This is Nelson John, let’s get started.
Recent earnings reports from big consumer companies like Nestle India, HUL, and Maruti Suzuki highlight a sharp slowdown in urban consumption, posing a potential threat to India's economic growth. This quarter, the fast-moving consumer goods sector saw growth shrink from 10.1% to just 2.8%. The slowdown isn't just due to a heavy monsoon; deeper issues like stagnant urban incomes and high food inflation are tightening consumer purse strings, particularly affecting the middle class. The IT sector's slowdown in hiring and modest wage increases only add to the problem. This consumption dip could severely impact India's economic growth since private consumption is a key growth driver. N Madhavan explains the reasons behind this slowdown in today’s Primer.
The "Big Five" of Indian IT—TCS, Cognizant, Infosys, HCL, and Wipro—are facing a predicament as investors seem more captivated by smaller firms despite their varied performance metrics. Over the last four years, smaller IT companies like Persistent Systems and Coforge have seen their valuations skyrocket, far outpacing their giant counterparts. This shift is driven by the belief that these nimble players are better positioned to adapt to disruptions from generative AI technologies, which lessen the importance of scale in traditional IT operations. Varun Sood writes that despite achieving solid revenue growth, the big players haven't seen the same enthusiasm from investors, who are concerned about declining profitability and leadership changes.
Leading manufacturers like steel and cement companies are increasingly tapping into renewable energy. Nehal Chaliawala reports on how this is proving to be a smart move financially. By signing long-term green power purchase agreements at lower rates than traditional coal-powered electricity, these firms are seeing significant reductions in energy costs. For instance, Ambuja Cement reported a 27% reduction in power and fuel costs this quarter, driven by a shift to renewable sources which now make up 25% of its energy mix. Similarly, ACC and Ultratech Cement have made strides in integrating renewables, with substantial cost savings.
Ramco Group from Tamil Nadu is restructuring its corporate framework to eliminate cross-holdings and attract foreign investors. Anirudh Laskar and Satish John report that Ramco Cements has sold its 16.23% promoter stake in Ramco Industries to other promoter entities. Ramco is looking to remove cross-holdings that might not be appealing to foreign investors. It plans to divest from assets worth at least ₹1,000 crore to reduce its debt.
Multi-speciality hospitals are now passe — private equity investors now want single-specialty medicare centres. Soumya Gupta writes that this is because patients are typically seeking higher standards of service, and such specialised hospitals are started by well-regarded doctors. Since 2022, private investors have increasingly favored single-speciality hospitals, leading to significant funding and acquisitions. Last year, 20% of the $5.5 billion in hospital funding in India went to such facilities. As for investors, these smaller hospitals offer more scalable options compared to larger counterparts.
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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, November 4, 2024. This is Nelson John, let’s get started.
Tata Motors is gearing up for a big change, planning to split into two separate entities for its commercial and passenger vehicle operations. This move is expected to wrap up in the next 12-15 months, pending regulatory nods. Alisha Sachdev reports that the man tipped to steer this transition is Tata Group’s CFO, P.B. Balaji, who might take on a significant role as non-executive chairman or vice-chairman for both new companies. His track record of strong fiscal management and strategic decisions at Tata Motors makes him a prime candidate for this role, although final confirmations are still pending.
Sebi is working to introduce a framework regulating digital platforms as Specified Digital Platforms or SDPs. An SDP is a digital platform that has mechanisms in place to prevent and address misuse, ensuring compliance with Sebi’s strict guidelines. This framework will impact platforms like Rigi.Club, Qoohoo, Cosmofeed, and Moneyyapp, which aid content creators, particularly those involved in securities-related content, Neha Joshi reports. These platforms will need to integrate advanced technologies like AI and ML to monitor and report securities-related activities effectively. Although this could lead to significant compliance costs, especially for smaller platforms, it's seen as a crucial step to maintain market integrity and protect investors from misinformation.
India's wedding season is set to hit its peak from November to March, and it's shaping up to be a blockbuster. Last year, weddings raked in a whopping ₹4.25 trillion on just 23 auspicious days, according to the Confederation of All India Traders. This time around, we're looking at an expected ₹25 trillion from about 3.5 million weddings. Prices for venues and catering are skyrocketing due to high demand. For instance, hotel catering charges have surged by up to 30% compared to last year, now costing between ₹6,000 and ₹8,500 per plate. Varuni Khosla spoke to couples who are finding that even less popular dates are pricey, with potential costs reaching around ₹30 lakh for a modest ceremony. On the other hand, the hospitality industry is buzzing with optimism, with weddings being a major driver for growth.
The 160-year-old Shapoorji Pallonji Group, known for iconic constructions like the RBI headquarters, is now ramping up its real estate game. While giants like DLF and Godrej dominate with sales around ₹73,000 crore, Shapoorji's real estate arm is playing catch-up, aiming to boost its bookings from ₹5,000 crore to over ₹18,000 crore in the next four years. Taking a cue from the late Cyrus Mistry, the group merged its various real estate activities—from residential to office spaces—under Shapoorji Pallonji Real Estate (SPRE). With this move, SPRE now controls significant ongoing projects and is prepping for a massive expansion with a land bank ready to support around 140 million sq. ft of development. This could potentially generate ₹2 trillion in revenue, indicating a major growth trajectory for the firm. Madhurima Nandy takes a deep dive into the group’s real estate plans in today’s Long Story.
Content creators are now pitching fully packaged projects to streaming platforms, securing key talents and finalizing production details upfront to expedite the greenlighting process. Lata Jha spoke to industry insiders who told her that this strategy strengthens pitches by attaching reputable industry names early, boosting platforms' confidence in the projects. This shift helps streamline approval processes, clarifying the project's vision and speeding up budget and timeline decisions. Fully packaged pitches with attached talent and detailed budgets are now essential, not just beneficial, explained another studio executive. They expedite platform decisions on budgeting and scheduling, enhancing a project's marketability and profitability.
Show notes:
PB Balaji could unify Tata’s new auto businesses under Tata Sons
Sebi's framework raises compliance concerns for smaller digital platforms
Wedding industry looks at rebound from dull H1 this season
OTT platforms favour pre-packaged projects to cut risks in content selection
Real estate: Deconstructing Shapoorji Pallonji Group’s housing ambitions
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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, October 31, 2024. This is Nelson John, wishing you a very happy Diwali.
As we step into Samvat 2081, speculation is rife about whether the Sensex can breach the 100,000 mark by March 2025. A Mint survey, reported by Mayur Bhalerao, reveals a split verdict among analysts: about half expect it to reach the milestone, driven by robust corporate earnings and steady foreign inflows, while others remain cautious, citing global uncertainties. Market volatility is now the new normal, with most experts anticipating a turbulent stretch ahead—marked by a potential correction followed by a gradual recovery toward the year-end. All eyes are on the US Federal Reserve, with many expecting a rate cut in December, which could provide a timely lift to Indian markets.
Diwali brings a unique tradition to India's stock market with Muhurat Trading, where the National Stock Exchange and the BSE will light up for a special one-hour session from 6-7 pm this Friday. This auspicious hour marks the start of the Hindu calendar year, Samvat 2081. Since last Diwali, the Nifty 50 has surged 25%, buoyed by strong GDP growth, robust corporate earnings, and plentiful liquidity. Which sectors have beaten the benchmark, which stocks have been the winners and laggards, and what can investors expect in the medium term? Abhinaba Saha brings a recap of Samvat 2080.
Europe’s largest paint maker is planning to exit its India business. Anirudh Laskar reports that Akzo Nobel is eyeing a ₹25,000 crore valuation for the sale, with Citigroup managing the transaction. Among the potential bidders are Adani, Aditya Birla, JSW, and Asian Paints. While Asian Paints already owns a 4% stake in Akzo Nobel’s Indian arm, any acquisition bid may attract regulatory scrutiny, given its dominant position in the market.
India is positioning itself as the next hub for artificial intelligence. Major players like Nvidia and Meta have already set up operations and are optimistic about India’s role in shaping the AI landscape. However, the government's push for indigenous development presents both challenges and opportunities for global firms. Leslie D'monte writes that initiatives like Viksit Bharat offer tech giants a platform to collaborate with local companies, fostering research and job creation. High-profile visits from tech leaders reflect this growing momentum, while Indian firms are also making strides with localised AI models.
In India, where privacy is a coveted luxury, the hotel industry is evolving to cater to the ultra-wealthy. A prime example is Arq by The Leela—a collection of exclusive villas that debuted in Udaipur this month, offering unparalleled seclusion. Despite its premium pricing, demand for these opulent stays remains strong. The luxury travel sector has seen a robust post-pandemic revival, with India's spending on luxury travel hitting $10 billion in 2022. High-end properties are driving this growth, with 39% of the country’s branded hotel rooms classified as upscale or luxury, reports Varuni Khosla.
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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, October 30, 2024. My name is Nelson John. Let's get started.
As Sebi comes down hard on futures and options trading, the National Stock Exchange is seeing fewer trades. Turnover and trades on the NSE have hit a six-month low. Ram Sahgal writes that average daily turnover fell nearly 12% to ₹1.07 trillion in October, with only 734.3 million trades taking place. Market experts said that Sebi's incoming clampdown on F&O trading is the main reason for the decline. Additionally, increased selling by foreign investors has contributed to a pessimistic market sentiment.
Swiggy is gearing up to “deliver” an IPO in early November. The quick commerce company is eyeing a valuation of $11.3 billion with a price band of ₹371-390 p er share. The IPO spells huge gains for Swiggy’s early backers like Accel, Apoletto, and Elevation Capital, with returns possibly soaring up to 35 times their initial investments, reports Priyamvada C. The IPO will be a mix of ₹4,499 crore in fresh issues and a secondary sale of 175.1 million shares. Swiggy is looking to expand its quick commerce arm, Instamart, and scale up its network of dark stores. As Swiggy steps into the public market, it's set against the backdrop of its rival Zomato's recent profitability and booming market cap.
Bharti Airtel recently announced a unique CEO transition plan with a 14-month wait before the new chief takes the helm on January 1, 2026. This prolonged handover period raises questions: What’s the ideal CEO transition time? Shelley Singh tackles that question in today’s Primer. Traditionally, CEO transitions can vary. For instance, Starbucks and Boeing witnessed rapid transitions due to performance crises, with new CEOs stepping in within a month. However, planned transitions generally allow six months to a year for a new CEO to settle in, providing clarity on a company’s direction to investors and employees.
India and Canada are at loggerheads. Diplomatic tensions between the two nations have affected geopolitics and harmed their trade. Previously on an upward trajectory, trade has dropped from last year's total to $3.38 billion in the first five months of this fiscal year. India's imports from Canada and exports both saw minor reductions, contributing to a widening trade deficit, reports Rhik Kundu. This slowdown in trade comes at a time when global trade is generally muted due to economic slowdowns in major economies and geopolitical tensions.
It's tough to grow out of your parent company's shadow. Peak XV (pronounced fifteen) Partners is experiencing just that. The venture capital firm is experiencing a decline in brand value since it was hived off from global brand Sequoia last year. Shelley Singh writes that despite inheriting assets worth $9.2 billion, Peak XV recently announced a reduction of 16% in its growth fund. It also reduced its management fees, reflecting a diminished brand prestige. Its leaders assert that such a move is necessary to remain competitive, and maintain that the firm's image and economics are still unparalleled.
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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, October 29, 2024. My name is Nelson John, wishing all our listeners a very happy Dhanteras. Let's get started.
Inflation, no more? That's what the International Monetary Fund, or IMF, thinks. In a recent economic review, the IMF declared that the global battle against inflation has "largely been won". That means that most countries across the globe have either met or are very close to their inflation targets. N. Madhavan explains that despite that, growth forecasts remain low. Projections for global economic growth have stabilised at 3.2% in 2024, slightly down from 3.3% in 2023. With a growth rate of 7%, India fares well in this aspect. However, global risks such as geopolitical conflicts, trade protectionism, and potential economic slowdowns remain significant — hence the low growth projections.
When the Indian government liberalised the economy in 1991, domestic conglomerates were worried: a sudden change challenged their collective dominance. That was 30 years ago. Safe to say, the dominance of empires like Reliance, Tata, Adani, and Kotak, among others has assuaged those fears. Our partners at How India Lives . com write that corporate India had a resurgence in the late 2010s, led by a huge influx of cash. As banks ran out of credible entities to loan money to, India Inc. stepped up — and never looked back. Ultimately, they conclude that conglomerates aren't going anywhere, anytime soon, while the medium-sized ones might have to reconsider their positions, or perish.
RBI is set to boost its digital security measures by introducing an AI-driven early warning system. This system will be designed to alert users to potential financial fraud during transactions. The initiative aims to tackle emerging threats in the digital finance space by leveraging AI to analyze data, identify high-risk platforms, and notify users of suspicious activities in real time. Subhash Naryan reports that this system will build on existing technologies like the MuleHunter AI, which detects mule accounts used in fraud schemes.
The government is planning to shift its strategy for PSUs. Instead of rushing to sell them off, the government now wants to work on their operational efficiency and governance, reports Gulveen Aulakh. The plan, sources told Gulveen, focuses on transforming these PSUs into professionally managed entities capable of yielding substantial dividends and potentially achieving higher market valuations through future public listings. In recent initiatives, specific PSUs like Rashtriya Ispat Nigam Ltd and Mahanagar Telephone Nigam Ltd are receiving targeted interventions to address their financial and operational challenges, with plans ranging from restructuring packages to debt resolution strategies.
The Open Network for Digital Commerce is launching an initiative to deliver groceries and other items within 30 minutes to two hours. The government-backed e-commerce network is looking to tap into the growing popularity of quick commerce in India, Sowmya Ramasubramanian reports. This move will involve collaborations with ElasticRun, Ola, and PhonePe’s buyer app Pincode, utilizing their dark stores and delivery networks to enable rapid delivery services.
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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, October 28, 2024. My name is Nelson John. Let's get started.
The recent India visits of AI’s godfather Yann LeCun, Nvidia's Jensen Huang, and inventor Mustafa Suleyman have put the country in an interesting position when it comes to the tech landscape, especially AI. Following the Global Partnership on AI Summit and India's push to co-create tech IPs, these visits highlight India's strategic importance in tech. Historically, India attracted global tech leaders due to its skilled, cost-effective workforce and proactive government policies, dating back to Bill Gates in 1997 and Google's founders in 2004. So what do these visits by tech CEOs actually mean for India? Shouvik Das explains.
The Adani Group is planning to construct its first greenfield cement factory in Odisha. The conglomerate is aiming to complement its string of recent acquisitions with new builds. The proposed facility, expected to cost between ₹3,000-3,500 crore, will have a capacity of 4 million tonnes per annum and is projected to be operational within two to three years, reports Anirudh Laskar. This development is part of a broader strategy by Adani, which also includes a new clinker grinding unit in Bihar, to expand its cement manufacturing capabilities across eastern India. With substantial internal funds, the Adani group is well-positioned to continue its aggressive expansion in the cement sector.
The rise of quick commerce is reshaping India's retail landscape. Quick commerce is challenging both traditional and modern retail outlets as fast deliveries become increasingly popular. FMCG companies are witnessing a surge in their quick commerce sales, with significant shifts in consumer purchasing patterns. Adani Wilmar reported a 36% growth in quick commerce sales in the September quarter, while Nestlé stated that quick commerce accounts for half of its e-commerce revenue. Suneera Tandon reports that this shift is leading to changes in inventory management across traditional retail channels. Companies are now adapting by offering channel-specific products and streamlining inventory to better align with the quick commerce model.
The biography 'Ratan Tata—A Life' stirred up some controversy as it hit the shelves recently without Ratan Tata's blessing. He had distanced himself from the project due to the overly flattering content, a move that came after the manuscript review last year. Released just weeks after Tata’s death on October 9, the book has been published by HarperCollins and remains in the present tense, a choice made before it was finalized. The author, Thomas Mathew, a retired bureaucrat, initiated this project in 2018 but faced setbacks as Tata withdrew his support, leading to delayed releases. While the book touches on some controversial decisions during Tata's tenure, like the appointment of Cyrus Mistry and the choice of West Bengal for the Nano plant, it remains unendorsed by Tata’s family, Varun Sood and Satish John report.
Delhi, once celebrated for its distinct winter charm, now grapples with toxic air quality that overshadows its historical and seasonal allure. Now that winters are at the doorstep, Delhi and its toxic air is likely to dominate news cycles till at least January. Despite long-standing efforts to improve air quality, including vehicle and industrial emission controls and reduced stubble burning, Delhi remains the world's most polluted city, according to the 2023 World Air Quality report. This persistent issue is compounded by seasonal activities like stubble burning and the use of biomass for heating, exacerbated by geographical and meteorological conditions that trap pollutants. Sayantan Bera examines the factors behind Delhi’s poisonous winter air.
Show notes:
Why Ratan Tata’s biography didn’t have his final sanction
Mint Primer: Why top tech executives are heading for India
Adani plans greenfield Odisha cement factory
FMCG firms embrace quick commerce amid shift in urban consumer preferences
‘Severe’ air is coming. Here’s the X-factor behind Delhi’s winter poison
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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, October 25, 2024. My name is Nelson John. Let's get started.
Qatar's Nebras Power was supposed to acquire up to a 49 per cent stake in Aditya Birla Group’s renewable energy business for about $400 million, but the deal has been put on hold due to a valuation mismatch. Utpal Bhaskar reports that challenges such as competitive returns and execution risks in the Indian market continue to be concerns for investors. The Aditya Birla Group company is still seeing interest from Alberta Investment Management and BlackRock's Global Infrastructure Partners.
India's startups aren't complying with certain rules. The Central Consumer Protection Authority has issued notices to 11 e-commerce companies including Blinkit, Zepto, Swiggy and Meesho for violating declaration rules. These violations include failing to display product manufacturing and expiry dates, among other packaging and labelling norms. Soumya Gupta writes that the CCPA took this action after users complained about receiving perishable items close to or after their expiry dates.
After a long and contentious battle, the Insurance Regulatory & Development Authority of India has approved the Burman family's proposed acquisition of Religare, reports Anirudh Laskar. This nod marks a significant step towards the Burmans’ takeover of Religare. Only approvals from the banking and market regulators are now pending. Despite initial resistance from Religare's management, the Burman family, which owns Dabur India, aims to solidify its ownership through an open offer of more than 3,400 crore rupees.
In a surprising turn of events, 60 out of 100 private equity and venture capital executives in India failed a mandatory exam set by the National Institute of Securities Management (NISM), under directives from SEBI. This exam, which is crucial for maintaining registration, has stirred concerns within the sector. Critics argue that the exam's content, which spans various fund types—venture capital, private equity and public markets—is disproportionately focused on public markets, and does not reflect the practical differences between these fund categories. Sneha Shah and Ranjani Raghavan report on the embarrassing situation India’s PE and VC sector is staring at.
Last year, Ecom Express found itself at a crossroads, searching for new leadership after the health-related departure of its co-founder and CEO, T.A. Krishnan. With growth stalling, the company turned to Ajay Chitkara, a veteran of the telecom industry, to inject new life into its operations. Chitkara, known for his successful stint at Airtel, took the reins at a tough time and now faces a daunting task: steering Ecom Express towards profitability and a successful IPO. The company has reduced its losses, but sustaining growth remains a challenge, especially with new players such as Valmo shaking up the logistics market. Mint’s startups editor Ranjani Raghavan tackles the question of whether Ecom Express’s IPO can succeed when Delhivery’s stock has failed to deliver.
SUBJECT/Title:
Why finance pros at PE, VC funds are flunking Sebi exam
Pre-head: IRDA approves Burmans’ Religare takeover; CCPA issues notice to quick commerce startups
Qatar's Nebras deal with Aditya Birla Group's green arm on hold
Why are e-tailers on notice for legal metrology?
IRDA gives Burman family green signal for Religaree takeover
Can Ecom Express’s IPO succeed when Delhivery’s stock has failed to deliver?
Why finance pros at PE, VC funds are flunking Sebi exam
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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, October 24, 2024. My name is Nelson John. Let's get started.
It was another quiet day for Indian markets as the initial rally in IT stocks, which powered the indices upward, was quickly offset by a sharp downturn in the financial and auto pack, resulting in a flat close for both the Nifty 50 and Sensex on Wednesday.
The Sensex and Nifty have fallen more than 5 percent in the last month. One thing is for certain: foreign portfolio investors are pulling out money from Indian markets. But where is this money going? Dipti Sharma writes that while China is the biggest beneficiary, other Asian countries like South Korea, Japan, and Indonesia are also seeing inflows. The shift has also happened partly due to profit-taking in India after a strong market rally. Analysts told Dipti that investors feel the potential for returns is higher in other markets, especially like Indonesia and South Korea where the valuations are more moderate.
India and China have announced that they have reached an agreement on patrolling their common border. This marks a significant step towards mending the strained relationship between the two countries since the clash in Galwan in 2020. N. Madhavan writes that despite some unresolved issues, bilateral trade has in fact grown between India and China. China became India's largest trading partner this year. However, given the vast restrictions, Chinese investment in Indian companies remains scarce. Madhavan writes that India stands to gain a lot by easing these restrictions, especially in the manufacturing sector.
India is rethinking its approach to highway development, shifting focus from the ambitious long-term Vision 2047 plan to prioritizing shorter-term projects. The decision comes as the complexities and delays of lengthy projects prove challenging. While Vision 2047 aimed to guide development up to India’s centennial in 2047, the government now favours projects that can be quickly approved and completed. Ongoing projects under the earlier Bharatmala program will continue, with possible individual approvals for those yet to start. This strategic pivot is about efficiency—getting roads built faster and making them useful sooner, reports Subhash Narayan.
Two years ago, HDFC Bank announced a huge merger with its parent company, HDFC Ltd, marking India's biggest-ever M&A deal. The merger aimed to boost synergies and enhance the housing sector and the overall economy. However, despite the initial excitement, which saw the bank's stock jump 10% on announcement day, the performance has been somewhat disappointing. Over two-and-a-half years, the stock has only seen a modest 4.7% increase, underperforming compared to market benchmarks. Market sceptics have pointed to the difficulties of maintaining growth momentum and managing financial metrics like net interest margins and the loan-to-deposit ratio on such a large balance sheet. Abhishek Mukherjee writes on how the bank’s investors can learn a lesson or two on persistence from none other than the Master Blaster Sachin Tendulkar himself.
Yann LeCun, Meta Platforms Inc.'s chief AI scientist, decided to visit India for a third time after an encounter with Infosys co-founder Nandan Nilekani at the World Economic Forum in Davos. Inspired by Nilekani's introduction to India's vibrant tech ecosystem, LeCun attended Meta's first 'Build with AI Summit' in Bengaluru, he told Leslie D’Monte. LeCun talked about witnessing the impressive adoption of Meta AI tools across major platforms like WhatsApp and Messenger, noting that India has the largest user community globally.
FIIs pulling out of India is not a surprise. But where is their money going?
What the border pact means for India and China
Centre shifts to short-term goals to build highways
Patience vs Payoff: What HDFC Bank’s investors can learn from Sachin Tendulkar
‘Godfather of AI’ is impressed by India’s AI prowess but found something lacking
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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, October 23, 2024. My name is Nelson John. Let's get started.
A strong wave of selloffs engulfed the Indian stock market on Tuesday, dragging the Sensex and Nifty down by more than one per cent each.
The International Monetary Fund kept its global growth forecast for 2024 and 2025 unchanged at 3.2 per cent. It also maintained its India growth projections at 7 per cent for FY25 and 6.5 per cent for FY26 in its October 2024 World Economic Outlook. While global growth is stable, there are changes beneath the surface, IMF said. The US economy saw an upgrade, but European countries faced downgrades. India and Russia boosted growth projections for emerging markets, driven by strong demand for technology.
The Vizhinjam International Transhipment Deepwater Multipurpose Seaport near Thiruvananthapuram in Kerala has finally kicked off operations after numerous delays. Managed by Adani Ports and Logistics, this critical development positions it as India's deepest natural port and its sole container shipment hub. However, a significant hiccup remains—the port's poor road connectivity, with improvements not expected for another 12 to 18 months. Kerala faces a broader economic crunch, battling slow growth and steep debt as expenditures overshadow revenues. Demographic shifts, including an ageing population and evolving migration patterns, have obstructed remittance flows. N Madhavan delves deep into Kerala’s economic issues and God’s own country’s efforts to revive its economy.
IPOs aren't only for the big boys: smaller startups are also heading to the public markets. Venture capital investors are nudging their early- to mid-stage portfolio companies towards IPOs amid a bullish stock market. Priyamvada C and Mansi Verma write that startups such as IntrCity, BHive, and Leverage Edu P are gearing up for listings soon. India's more lenient IPO requirements compared to the US are encouraging such moves, they add. Another reason investors are pushing for this move is that many funds are now reaching the end of their life cycles and have to return money to their limited partners.
Ambuja Cement has bought more than 46 percent of Orient Cement, marking yet another landmark deal for the Adani-owned cement company. This is the Adani Group's fourth major transaction to bolster Ambuja's prowess in less than a year. Nehal Chaliawala writes that this acquisition marks the latest round in the cement war between Ultratech and Ambuja. Small players continue to be either bought or squeezed out as the two giants look at consolidating a huge chunk of the industry.
Did you know that Noida is an acronym? It stands for New Okhla Industrial Development Authority. Now, there’s a new one on the way – the Uttar Pradesh government has greenlit the development of New Noida near Greater Noida. This new city, planned over 15 years in the Dadri-Noida-Ghaziabad region, will unfold in four phases, with the first set to be ready in four years. It's expected to accommodate 600,000 residents and include a mix of industrial hubs, residential areas, commercial spaces and healthcare facilities. Notably, the city plans also feature specialised industrial hubs such as a 'Korean City', a 'Japanese City', and an ‘Olympic City’. Madhurima Nandy explains more in today’s Primer.
IMF keeps India’s FY25 growth forecast unchanged at 7%
Kerala’s 500 days challenge: Can ‘God’s own country’ become a Gujarat?
No startup’s too small to IPO in a bull market
Ambuja's Orient buy steps up cement war
New Noida city: Will it spur NCR realty market?
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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, October 22, 2024. My name is Nelson John. Let's get started.
When you don't agree with the outcome, just don't release the data: that's the approach Indian carmakers have taken of late. The release of a crucial carbon emissions compliance report has been delayed because companies like Hyundai, Kia, and Mahindra failed to meet norms. Alisha Sachdev reports that the automakers want a five-year period to bring down their emissions, while the government has already issued steep fines. If the companies publish their below par numbers, the fines will increase — leading to this stalemate. Indian emission norms are still better than their European counterparts, but carmakers don't seem like they want to budge as of now.
The Edelweiss Group is set to unleash a sea of IPOs into the market soon. In an interview with Mint, the group's founder and chairman Rashesh Shah said that the company is hoping to list seven subsidiaries soon. The group intends to begin with the IPO of its mutual fund arm and its alternative asset management subsidiary, each valued at 1 billion dollars. Shah admitted that initially, the financial services company chased growth above everything else, which backfired later. The group also plans to pay off debt worth 6,000 crore rupees by the end of this year to prepare for a clean slate as the IPOs approach.
After being a laggard for much of 2024, the Bank Nifty has finally turned a corner, led by HDFC and Axis Banks. Other stocks like Kotak Mahindra have provided mixed results. Ram Sahgal writes that the banks have had to adopt new strategies to adjust their loan books and attract more deposits. Ram also spoke to analysts, who said that the Bank Nifty could now outperform the Nifty50. HDFC's stock performance will be crucial to the Bank Nifty's growth, they added.
Last week, fintech Navi got a huge jolt as it was barred by the Reserve Bank of India from disbursing any more loans. The RBI had banned Navi for charging high interest rates for its loans. Gopika Gopakumar reports that Navi and its founder Sachin Bansal assured its lenders in an unscheduled meeting that the company was well-prepared to manage any fallout until March 2026. Navi outlined a plan to cover 3,027 crore rupees in debt repayments due in the next six months, with expected customer collections touching 4,000 crore rupees. The company also has a liquidity buffer of 1,500 crore rupees, Bansal outlined. Navi focuses on personal loans of up to 20 lakh rupees, disbursed through its app.
We told you yesterday about how gold prices in India are hitting record highs. The prices are peaking over 78,000 rupees per 10 grams, influenced by a mix of global and domestic factors. Initially, a cut in import duty led to a temporary drop in prices, spurring a spike in demand. However, global uncertainties have driven prices back up. Soumya Gupta explains that despite this volatility, Indian consumers aren't necessarily reducing their gold purchases. Sales of lighter and more affordable jewellery pieces have increased during the festive season, with jewellers responding quickly to cater to this demand.
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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, October 21, 2024. My name is Nelson John. Let's get started.
Noel Tata's first move at the helm of Tata Sons has been a small but significant one. The philanthropic arm of the Tata group has moved away from having fixed terms, and instead now has permanent members. Varun Sood and Satish John report that this move aims to ensure continuity and stability within the Trusts that collectively hold a majority in Tata Sons. The Tata Trusts are pivotal in the governance of Tata Sons, and have a key say in the conglomerate's strategic direction.
The second-quarter results for India's IT stocks weren't all that great. The four leading companies: TCS, Infosys, Wipro, and HCL Tech—all saw some declines. Jas Bardia reports that TCS saw a significant drop in large deal bookings. It attributed this decline to the lack of mega deals, but remained optimistic about its order value range. Infosys also witnessed a decrease in large deal values but saw an increase in smaller deals. Wipro was able to buck the trend and sign more large deals, as it opted for a consulting-led approach and offered more AI services.
It's never a bad time to buy gold, but the recent surge in prices has put off buyers for now. Gold now costs around 80,000 rupees per 10 grams. Such high prices have led to a dent in demand during the festive and wedding season between October and December. Ram Sahgal writes that the increase in prices is due to uncertainties like the US elections, potential geopolitical tensions, and changes in US policy rate. Demand for the precious metal has dropped by around 10 to 12 percent. Some retailers are seeing a rise in exchanges. They are maintaining sales volumes as some consumers continue to buy more gold, worried about even higher prices.
India's rubber production is prone to volatility. Climate change and low volatility have threatened what was once a thriving industry. Despite these hurdles, the demand for rubber has surged in India. George Skaria writes that India's rubber production slightly increased from 8.4 lakh tonnes to 8.6 lakh tonnes from 2022 to 2023, but consumption outpaced supply. That led to a shortage worth 5.5 lakh tonnes. This scenario has impacted tyre manufacturers, who now rely on imports to meet demand. George's story outlines the entire rubber trade in India, and the vast complications that adversely affect both manufacturers as well as consumers.
Since the 1990s, Photoshop has been a staple in photo editing. You would think that the emergence of generative AI would replace Photoshop, but that hasn't been the case. Shouvik Das writes that rather than replacing it, AI is instead augmenting the process of editing images. Tools like Autodesk’s Pixlr and Canva have also embraced AI to expand their user base beyond professional designers.
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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, October 18, 2024. My name is Nelson John. Let's get started.
Indian stock market benchmarks—the Sensex and Nifty 50—extended their losing streak for a third straight session on Thursday. The Sensex slipped 0.61 per cent, while the Nifty 50 declined 0.89 per cent by the close.
It's raining bomb scares, with over 22 hoax threats reported in recent days. In response, the civil aviation ministry is engaging with international bodies to devise strategies for managing such incidents. Mihir Mishra reports that proposed measures include imposing flight bans on offenders. The ministry is also in talks with VPN operators to trace the origins of these hoaxes.
Over 400,000 Indian students are currently enrolled in Canadian universities, but this figure could shrink by 100,000 next year driven by diplomatic tensions and stricter student visa rules. Amid a housing crisis, Canada has introduced a two-year cap on new student permits, with a significant reduction expected by 2025. The financial proof requirement for living expenses has also doubled, prompting students from regions like Punjab and Haryana to explore alternatives in Australia and Europe. The potential drop in Indian enrollments is raising alarms at Canadian universities, where they form a crucial part of the international student community. Devina Sengupta explores the impact of diplomatic strains on the future of Indian students in Canada.
Bajaj Auto's stock price plummeted by 11 per cent on Thursday, after the company announced its Q2 results. The automaker posted a bleak domestic demand outlook for two-wheelers this festive season. Despite a 24 percent increase in year-on-year ebidta, Bajaj's results were well below analyst expectations. Abhinaba Saha writes that this massive selloff casts a huge shadow on not just Bajaj, but the entire two-wheeler industry at large. Entry level products, in particular, have been poor as the market moves to more premium options.
Not long ago, Northern India's political scene would periodically erupt with sugarcane farmers' protests, disrupting traffic and even threatening the capital's water supply due to the notorious "sugar cycle." However, this cycle has been broken thanks to the ethanol blending programme, which has turned excess sugar production into ethanol, stabilizing the industry and benefiting farmers. This shift has not only aided farmers but has also significantly contributed to India's energy security goals. Yet, challenges persist. Grain-based ethanol producers are grappling with rising feedstock costs for rice and maize, raising concerns of financial losses and potential loan defaults. Additionally, diverting maize to ethanol production has inflated poultry feed prices. Sayantan Bera unpacks the successes and hurdles of India’s ethanol blending programme in today’s Long Story.
Byju Raveendran, founder of Byju’s, addressed the challenges facing his company during a candid virtual press conference on Thursday. Amid investor backlash and a bankruptcy filing, Raveendran dismissed rumours of fleeing India, clarifying that his move to Dubai was for his father’s medical treatment and reaffirming his commitment to return and steer the edtech company forward. He defended his leadership, pointing out that the very investors who once backed Byju’s rapid expansion are now retreating as the company grapples with financial troubles. Raveendran also recounted that top investors, including Sofina and Prosus, had sought his ouster, holding him accountable for mismanagement. Despite the setbacks, he emphasized that subsidiaries like Aakash Educational Services remain profitable, contributing to ₹5,500 crore in annual recurring revenue. However, he acknowledged that Byju’s core business has stalled, no longer generating revenue—a stark decline from its peak in 2021.
Govt mulls banning hoax threat culprits from flights, examines global practices
India-Canada row: It’s failing Indian students
Bajaj Auto investors get a demand reality check
Ethanol blending: The good, the bad and the googlies
Raveendran blames investors, eyes new edtech avatar, says $533 mn used u
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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, October 17, 2024. My name is Nelson John. Let's get started.
Indian stock markets declined for the second straight session on Wednesday, with the benchmark Sensex shedding 319 points, or 0.39 per cent, and the Nifty 50 slipping 86 points, or 0.34 per cent.
In the past three months, several films have been re-released in theatres, driving higher footfalls and occupancy rates for PVR Inox, India's largest cinema chain. Abhinaba Saha reports that re-releases now account for 6 per cent of the chain’s total footfalls. PVR Inox plans to continue this strategy in the coming quarters, with upcoming blockbusters like Singham Again and Pushpa 2 expected to further boost its business and, consequently, its stock performance.
Over the past two decades, Bandra Kurla Complex (BKC) has emerged as Mumbai’s premier business hub, housing giants like the National Stock Exchange, Sebi, ICICI Bank, and Facebook. However, available office space in BKC is now scarce, with vacancy rates hovering at just 3-4%. Khushi Malhotra reports that the intense demand for office space has driven businesses to explore nearby areas such as Kalina, Kurla, Worli, and Lower Parel. Yet, with many projects in these locations still years from completion, companies seeking grade-A offices face a prolonged wait.
How much does bhujia cost? According to Haldiram’s, about 10 billion dollars. The leading snack maker initially explored a majority sale, but is now eyeing a smaller stake sale, Sneha Shah reports. Despite the shift, investors like Bain Capital, Blackstone, and Temasek Holdings remain interested, eager to tap into India’s booming snacks market, which is projected to double by 2032. With its status as a profitable market leader and a potential IPO candidate, Haldiram's presents a compelling investment opportunity, Sneha adds.
The Indian rupee hit a record low of 84.07 against the US dollar this week, marking a depreciation of over 9% since April 2022—far exceeding the typical 3% annual decline. The slide is attributed to foreign institutional investors pulling out around $8 billion this month, dampening demand for the rupee. With global markets in flux and geopolitical tensions—such as the Israel-Iran conflict and the ongoing Russia-Ukraine war—adding pressure, experts anticipate further depreciation, possibly touching 84.20. Sumant Banerji breaks down how the weakening rupee impacts both you and the broader economy.
Pratilipi, the platform for long-form regional stories, hit a major milestone in July 2024 by turning cash-flow positive. Founded in 2014, with backing from big names like Tencent and Nexus Ventures, Pratilipi saw its revenue jump 66% to ₹58 crore last year, while it managed to slash its losses by 62%. In a market where many content platforms have struggled or shut down, Pratilipi’s focus on in-depth storytelling in Indian languages has set it apart. While others chased short videos and social media trends, Pratilipi remained true to its core—delivering engaging narratives across 12 regional languages. The platform’s success comes from its loyal reader base, mostly women aged 18-35, and a commitment to its authors, offering workshops and fellowships to support their work. Shadma Shaikh delves into how the platform scripted a rare hit.
PVR Inox re-release bet pays off in Q2, more in the pipeline
With BKC packed, Mumbai hunts for its new business district
Haldiram deal turns into a minority stake sale
Mint Primer | Rupee's big fall: How much lower can it go?
How storytelling platform Pratilipi scripted a rare hit
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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, October 16, 2024. My name is Nelson John. Let's get started.
The Sensex fell 153 points, or 0.19 per cent, while the Nifty 50 closed 71 points, or 0.28 per cent, lower.
The country's biggest listed company presented its quarterly earnings report yesterday. Investors didn't like it too much: Reliance Industries' share price dropped by 2 percent on Tuesday. Its oils to chemicals business remains its biggest pain point: ebidta has fallen 19 percent year on year. But Jio made up for this, Manish Joshi writes. There is significant upside for Jio for the coming quarter, while Reliance's retail business is trending upwards too. Investors might not be too happy with the latest results, but future quarters might be much better for RIL.
Urban India constantly uses quick commerce apps to order groceries and other household items. This comes at the expense of traditional FMCG players. Dipti Shah writes that this growing trend will affect FMCG stocks negatively. This is also evident from their modest returns, compared to the significant gains seen in shares of companies like Zomato and Trent. Even FMCG giants have acknowledged the rising contribution of quick commerce to their sales, signaling a transformative shift.
After a brief break, startups are finally hiring CXOs again. Over two-dozen top-level executives were recruited in the last three months, report Sneha Shah and Devina Sengupta. According to industry insiders, this surge in hiring for roles like chief executives and business heads is a response to more funding coming in. They are also a strategic move by startups to strengthen their leadership teams in preparation for future growth, including IPOs. Such hires are receiving significant stock options as part of their packages, report Sneha and Devina.
This week, relations between India and Canada soured further as each country expelled six of the other’s diplomats. This escalation follows Canada's allegations of the Indian government’s involvement in the assassination of Hardeep Singh Nijjar, a Sikh activist, in British Columbia in June 2023. Canada's Prime Minister Justin Trudeau cited non-cooperation from India in the investigation as a reason for the expulsion, intensifying tensions amid Canadian political dynamics as Trudeau faces decreasing popularity ahead of the election in 2025. Economic ties between India and Canada, characterised by substantial trade and investment, remain strong despite the diplomatic rift. Elizabeth Roche, associate professor at Jindal Global University, explains the fresh turn in the ongoing tensions.
The Adani Group has its fingers in many pies — from power to ports to even pulses. Now, it is eyeing a new sector: semiconductors. Anirudh Laskar reports that the conglomerate is looking to invest 3 billion dollars with two Israeli tech firms to set up a factory. The total investment in this unit could increase up to 8 billion dollars. The Group hopes to count on the government's help with the setting up of this facility, as they have been bullish on chip manufacturing hubs.
Show notes:
RIL investors wait for oil-to-chemicals business profitability to bottom out
Investors shy away from FMCG stocks but embrace quick commerce platforms: Why?
The great startup CXO hunt: companies beef up top deck as funding winter thaws
Mint Primer | The escalating India-Canada rift and its implications for India
Adani plans $3 billion outlay to launch semicon biz
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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, October 15, 2024. My name is Nelson John. Let's get started.
Thanks to gains in shares of select banking and IT heavyweights, including HDFC Bank and Infosys, Indian stock market benchmarks- the Sensex and the Nifty 50- resumed their upward march on Monday. The Sensex rose 0.73 per cent, while the Nifty 50 settled 10.66 per cent, higher.
Vinay Dube, previously at the helm during tumultuous times at Jet Airways and Go First, now leads Akasa Air, facing similar challenges with its fleet of Boeing 737 Max aircraft. Akasa Air, aiming to carve a niche in India's aviation market, heavily relies on this model, notorious for its operational issues, despite its economic purchase price. The airline, commanding a modest 4.5% market share, seeks to establish itself against the dominating duo of IndiGo and Air India, which together control over 90% of the market. Akasa's strategy involves mirroring successful practices from industry leaders like IndiGo, which thrived on a sale and leaseback model that Dube intends to replicate. Nehal Chaliawala and Mihir Mishra write on Vinay Dube’s plans to take on the Indigo-Air India duopoly in India’s aviation market.
Class actions are gaining momentum in India, with recent cases against Ola Electric and Jindal Poly Films showcasing their rising prominence. A class action allows people with similar grievances to file a single lawsuit, making it a powerful tool for addressing collective issues. The rise in class actions is largely due to growing awareness among consumers and shareholders, facilitated by technology and easy access to information. More people are now using these legal options to hold companies accountable. The digital age has also amplified opportunities for collective grievances, especially with the collection of vast amounts of personal data. Mint’s Krishna Yadav explains the rise of class actions in India.
Becoming a cricketer in India can lead to vast riches. For Suryakumar Yadav, the money doesn't stop rolling in. Gaurav Laghate writes about how leading India to a recent T20 series win against Bangladesh has bettered Yadav’s financial prospects. Yadav's endorsement fee has jumped by a whopping 350 per cent, with deals worth 2 crore rupees each. Among companies shelling out this money for him are ICICI Prudential Life Insurance, Reebok, and Lenskart. Sky, as he is fondly called, is now rubbing shoulders with Virat Kohli and Rohit Sharma, the other scions of cricket endorsement deals.
In September, India witnessed a sharp rise in inflation to a nine-month high of 5.49 per cent, surpassing the expected 5.1 per cent. This increase was largely driven by a significant hike in vegetable prices, which surged due to a dissipating base effect and unfavorable weather conditions. This unexpected jump underscores the Reserve Bank of India's cautious stance on not cutting the repo rate. With this spike, the inflation rate for the July-September quarter settled at 4.2 per cent, slightly above RBI's projection of 4.1 per cent, suggesting that rate cuts might be postponed to 2025. Payal Bhattacharya reports on how September’s inflation surge proves RBI was right to delay a rate cut.
Rocket science is generally hard, which is why any achievements made in this vast and expensive field should be celebrated. Elon Musk's SpaceX has innovated space travel by using mechanical 'chopsticks' to catch one of its rocket boosters mid air so it can be reused for other rockets. Leslie D'monte writes that this would reduce the costs and turnaround time of future rocket launches. Moreover, this achievement could boost Musk's financial and strategic positions by lowering launch costs and speeding up operations.
Primer: How Musk catches rockets with ‘chopsticks’
Suryakumar Yadav: India’s Mr 360 is changing the game for brand endorsements
Mint Explainer: Why Class Action Suits in India Are on the Rise
How Akasa Air’s Vinay Dube is taking on the IndiGo-Air India duopoly
In charts: September inflation proves why RBI was right to delay a rate cut
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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, October 14, 2024. My name is Nelson John. Let's get started.
The upcoming festive period is usually a fruitful time for India's retail industry. As the sales increase, so does the advertising. However, companies are scaling back on traditional media spending. Instead, the industry is spending much more on digital ads, as well as those on e-commerce platforms. Varuni Khosla and Gaurav Laghate writes that FMCG and the auto sectors are likely to see good spending through such channels, but not on your TV or billboards.
In 2021, amid a booming market for startup IPOs in India, Zomato was an exception in the landscape, focusing heavily on fresh share issuances rather than facilitating investor exits. Unlike Zomato, which issued new shares worth Rs 9,000 crore, the trend among other startups was to use IPOs as a primary exit strategy for existing investors. In that fiscal year, 48% of total startup IPO shares were sold through offers-for-sale, slightly less than the broader market's 63.3%. This increased to 64% by FY25, indicating a growing preference among startup investors to liquidate their stakes, reports Priyamvada C. While this trend means startups raise less capital for growth during their IPOs, it opens opportunities for new investors to engage with the startup sector as it rides a wave of market highs.
In another case of poor trade practices, the Competition Commission of India has found WhatsApp and its parent company Meta Inc. guilty of breaching competition laws. The 3-year investigation concluded that WhatsApp violated competition rules by abusing its market dominance with a policy update. Gireesh Chandra Prasad writes that this update was deemed "exploitative and exclusionary" by CCI's investigation. The penalties could go up to 10 percent of Meta's global revenue.
The latest data on India's industrial production, which showed a slight contraction in August for the first time in 21 months, raises concerns about a potential slowdown in the economy. The Index of Industrial Production dipped by 0.1% compared to a significant 10.9% growth in the same month last year. N Madhavan explains how this drop can be attributed to extraordinary rainfall impacting mining and electricity generation, alongside a high base effect from last year's strong performance. Despite this hiccup, experts suggest this is a one-off event, expecting a rebound in industrial activities starting September, buoyed by government infrastructure spending and other high-frequency indicators.
Zomato evolved from food delivery to include quick commerce and most recently an events business by purchasing Paytm’s subsidiaries Insider and TicketNew. This expansion into live events and dining with the newly dubbed District app aims to integrate Zomato's dining expertise with large-scale events. But the journey isn't straightforward. The events business, like those of old and new competitors, is notoriously tough to monetize, especially with the slim profit margins seen in pure ticket sales, as shown by the industry leader, BookMyShow. Zomato's real bet is on producing and hosting live events, which promise greater returns but also carry higher risks and investments. Sowmya Gupta dives deeper into Zomato’s latest acquisition strategy and how it can do wonders for the company.
Advertising sentiment remains subdued during festive quarter
Startup IPOs: Investors rush for exits as new capital takes a backseat
CCI finds WhatsApp, Meta Inc. in breach of competition law; penalty order soon
Is the economy slowing down?
Not just a cold play: How Zomato can make District a blockbuster
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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, October 11, 2024. My name is Nelson John. Let's get started.
A stalwart of India’s corporate world passed away on Wednesday night. We'll bring you some stories on his legacy and work over the decades.
After retiring as the chair of Tata Sons in 2012, Ratan Tata shifted his focus to supporting startups through his investment vehicle, RNT Associates. By 2019, he was actively engaging with budding entrepreneurs on Instagram. However, he was clear that getting funded didn't guarantee success. Tata’s investments, though modest, were a mark of credibility in the startup community, especially when capital was hard to come by. His approach wasn't just about writing checks; he invested in mentoring the founders, focusing on their long-term vision and passion rather than immediate financial metrics. Mint’s startups editor Ranjani Raghavan takes a look at the former Tata group chairman’s vision for Indian startups.
Ratan Tata, the visionary driving force behind Tata Motors, transformed it from a local truck maker into a global automotive powerhouse. During his tenure, the Tata Nano, the world's cheapest car, was launched, aimed at democratizing car ownership in India. Though it didn't hit commercial targets, the Nano exemplified Tata's visionary approach. Under his leadership in 1998, Tata Motors introduced the Indica, India's first indigenously developed passenger car. A landmark moment came in 2008 when Tata Motors acquired the iconic British brands Jaguar and Land Rover for 2.3 billion dollars from Ford. This was a stunning reversal of fortune, as Ford had previously considered buying Tata's car division. Tata turned these struggling brands into profitable entities, significantly enhancing Tata Motors' stature and revenues. Alisha Sachdev writes about Ratan Tata’s legacy at one of India’s biggest automobile companies.
For over a century, the Tata group has been a cornerstone of the Indian industry, spanning multiple sectors. While JRD Tata was at the helm for 51 long years, his son Ratan was the one who did the heavy lifting. He took over right as India was on the cusp of opening up its economy. An opportunity, for sure — but it also would have led to a lot of challenges. Sundeep Khanna writes about the leadership at the Tata group, from JRD to RNT to now, N. Chandrasekaran, and how it has shaped not only the conglomerate, but also corporate India as a whole. He takes a retrospective look at its progress, pitfalls, and even some controversies over the years.
The Indian equity market's rally has paused, with the Nifty50 index down 3% in the first seven trading sessions of October. India's volatility index rose 13%, indicating heightened risk aversion. Harsha Jethmalani writes that foreign investors are showing renewed interest in China, following the announcement of a stimulus package. That has led to investors pulling money out of Indian markets. This further raises the possibility of India's equities underperforming against the broader Asia markets, according to a Nomura report from 7 October.
India's commercial office sector is set for a record-breaking year, signalling a strong bounce back from the pandemic lows. The sector is expected to surpass its previous high, with anticipated leases reaching over 70 million square feet across major cities by the end of 2024. This surge is largely driven by the return of multinational corporations to physical offices and a significant increase in demand from global capability centres and flexible office operators. Bengaluru is leading the charge in space absorption, followed by Delhi-NCR and Hyderabad, with tech companies, financial services and manufacturers actively snapping up office space. Madhurima Nandy explains how this leasing boom is not just good news for real estate but also a positive sign for the economy.
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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, October 10, 2024. My name is Nelson John. Let's get started.
Yesterday, the Reserve Bank of India left key policy rates unchanged, maintaining the repo rate at 6.5 percent. The RBI’s decision comes amid rate cuts by central banks worldwide, notably the US Federal Reserve, Bank of Japan, and Bank of England. The RBI remains wary of inflation, and thus doesn't want to cut rates just yet. Gopika Gopakumar writes that the decision still leaves room for a rate cut at the monetary policy committee's meeting in December.
Faced with cost pressures, companies are keen on retaining their employees. Some plan to disburse more than 90 percent of variable pay since raises are expected to be modest this year. Key sectors such as manufacturing, auto, and IT are likely to pay bonuses in full, while the retail and consumer sectors will be more cautious. Anandorup Ghose from Deloitte India tells Devina Sengupta that while bonus payouts are typically within 90-110 percent of the target, variable pay differs by seniority. Roopank Chaudhary of consulting firm Aon notes that though some sectors have seen improvements, overall bonus projections for 2025 are similar to last year's, at about 13.6 percent of fixed pay. Salary hikes are expected to be around 9.5 percent next year, a slight increase from 9.3 percent this year.
India is pumping 25 billion dollars into its semiconductor sector as it looks to get at least four more chipmakers to set up fabs. The focus is on legacy chips, which are essential in industries such as auto, aerospace and defence. These older chips are cheaper to make and maintain than the most advanced ones, such as those used in iPhones. The Tata-PSMC facility, the only commercial fab in India right now, is set to make chips ranging from 28 nanometers to 90 nanometers. While these are more advanced than typical legacy chips, the plant will also churn out the older variety to meet domestic needs and reduce imports, boosting India's revenue in the process. Shouvik Das takes a closer look at India’s big gamble on legacy chips.
The Kalyanis, known for their substantial holdings in India’s industrial sector, including Bharat Forge, are embroiled in a contentious legal battle over the family’s wealth. Gaurishankar Kalyani, the youngest brother of Bharat Forge chief Baba Kalyani, has challenged a 2012 will of their late mother Sulochana Kalyani. He claims a newer will from December 2022 names him as the main heir, but Gaurishankar accuses him of coercing their mother into sidelining him.
Priyanka Gawande explains the legal battle for control over multibillion-dollar assets.
Is your real estate agent a social media influencer as well? Madhurima Nandy writes about such agents, who earn nearly 2 crore rupees a year from brokerage and influencer marketing fees. But they also offer other services: advice on what to avoid, whom to trust, and a rundown of real estate basics. As younger generations start buying property, social media has become fertile ground to attract such clients. Madhurima writes that real estate developers are getting into this as well, partnering with influencers to build hype around their projects. After fashion, beauty, food and finance, it looks like influencers have a new sector to sink their teeth into.
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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, October 9, 2024. My name is Nelson John. Let's get started.
Do you use a zero-brokerage app? That won't last too long. Soon, brokers such as Zerodha, Groww and AngelOne have to overhaul their business, as the market regulator has barred them from pocketing exchange fee waivers. It will force these brokers to raise their fees to make money. Dipti Sharma writes that these new-age brokers will now either charge a flat fee or a percentage of the order—much like their traditional counterparts. Sebi believes this will bring a balance in the market.
Agricultural employment in India is rising. A recent survey showed that 46.1 percent of Indians now work in the farm sector, as opposed to 42.5 percent before the 2020 covid-19 outbreak. The primary drivers are the lack of better-paying jobs and more participation from women. Sayantan Bera writes that this raises concerns about productivity and disguised unemployment. Meanwhile, the political pressure for more state support due to agriculture's uncertain income continues to increase. He makes sense of the survey and proposes some solutions to counter this worrying trend.
Bigger TVs are about to get cheaper! Televisions and ACs are in for a boost, thanks to some new government perks. The Ministry of Electronics and Information Technology plans to scrap import duties on TV panel open cells, Shouvik Das and Mihir Mishra report. This cut could make big-screen TVs cheaper in the country and is part of a bigger plan to crank up domestic TV production from 28 to 45 percent. The government is also looking at dropping customs duties on some TV parts and reducing the GST on local production of display panels from 28 to 18 percent. The Centre is also considering setting up local factories to boost domestic manufacturing of display components. Why does this matter? Well, the cost of display panels and open cells can make up half the price of a TV. Currently, most of these parts are imported, meaning a lot of the money from TV sales ends up outside India. But with these changes, we could see more of this cash staying in the country.
India's renewable energy sector is seeing an unusual trend—companies are trading grid connectivity, with some aiming to profit quickly. Nehal Chaliawala spoke to executives who revealed that up to 10 gigawatts of the capacity to transfer renewable energy to the grid is up for grabs, priced between Rs 15-25 lakh per megawatt. In FY24, India ramped up its renewable capacity by 18.5 gigawatts to a total of 153 gigawatts. However, the infrastructure needed to connect these new green power sources to the Inter-State Transmission System hasn't kept pace. This mismatch has opened a door for middlemen and opportunists. The sellers range from companies altering their business strategies to opportunistic entities looking to cash in. Some engineering and construction firms even secure connectivity to resell it, tying it to contracts for building renewable projects.
For more than two decades, India's domestic hockey leagues have struggled to maintain any continuity. Seven years after its last season, the Hockey India League is back with its latest stint, this time featuring both men and women. Last week's announcement comes on the heels of back-to-back bronze medal finishes over the last two Olympics. We invited Venkat Ananth to write about this year's edition, its financials, and the possible marketing plans to make hockey a widely-watched sport.
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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, October 8, 2024. My name is Nelson John. Let's get started.
Over the previous quarter, the Nifty IT index rose around 14%, while the Nifty50 increased by around half that number. Harsha Jethmalani writes that this happened after the US Federal Reserve cut its interest rates by half a percent. That spurred BFSI clients to increase their IT spending. However, this money will only be seen on the books in the quarter next year. Harsha adds that recent comments from Accenture suggest a continued focus on cost-optimisation by clients, but the overall outlook does look better than it did a few months ago.
Maldives President Mohamed Muizzu is in India, aiming to patch up strained ties and get Indian tourists heading back to his country’s stunning islands. Even though overall tourist numbers in the Maldives are up by 10 per cent this year, the number of Indian visitors has plummeted. Politics and international relations have nudged Indian travellers toward other destinations, which is a real hit to the Maldives where tourism isn't just big business—it's essential, contributing about 30% directly to its GDP. Back in 2023, Indian tourists made up 12 per cent of all visitors to the Maldives, but this year, that's halved to just 6 per cent. N Madhavan explains how Muizzu is planning to mend his country’s relationship with its biggest and most important neighbour - India.
Hero Motocorp has dominated the two-wheeler sector for more than three decades. However, its former partner Honda now threatens to overtake this lead. This is the first time in years that the automative market has seen any sort of competitive action to this extent. The two companies were partners from 1984 to 2010. After their split, Hero and Honda ruled the motorcycle and scooter markets respectively. Sumant Banerji writes that both companies are making significant inroads into each other's strongholds. Sumant writes about the segment battles in detail, and outlines who is winning what — including the up and coming EV market.
India's Ministry of Law and Justice is considering updates to the Civil Procedure Code to streamline civil lawsuits and reduce court backlogs. Inspired by the effective Commercial Courts Act, the proposed reforms aim to incorporate mandatory timelines and mediation efforts to expedite legal processes. This initiative is part of broader judicial reforms, including recent revisions to major criminal laws, aimed at speeding up justice. With over 5.6 million pending civil cases, these reforms are crucial for enhancing the efficiency of India's judicial system. The goal is to modernise the CPC, established in 1908, and ensure it meets contemporary legal needs more effectively, reports Manas Pimpalkhare.
The festive season is here, and so is the season of festive foods. The joy of Hilsa, a favourite among fish enthusiasts, is marred this year by skyrocketing prices and scarce supplies. In Kolkata, the cost of a 1.5 kg Hilsa has surged by 600 rupees compared to last year, now fetching 2,000-2,200 rupees at wholesale and even more at retail. In Delhi's C.R. Park, daily arrivals have plummeted from up to four quintals in previous years to just one quintal. With Durga Puja around the corner, demand is spiking, and prices are expected to climb even higher, potentially increasing by 400-500 rupees per kg. Puja Das reports on the root of the problem, which lies in the dwindling catch—down over 70% since the 1980s—and a reduced import window from Bangladesh.
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