You are on page 1of 19




Online Markets Lose Trump Blames Both Sides Rohit Ready to Play
Edge in Electronics Again for Virginia Violence Behind-the-Scenes Role

*Available only in Bengaluru city

Inside story
Tata Group Decides to
Say Bye to All Mistry Cos
Amazon to Grow Large Appliances
Sales in Upcoming Festival Season
With the festive season round the corner, online
marketplace Amazon India is training its sights
on growing its large appliances sales. The
company, which claims a 400% year-on-year Almost 50 Shapoorji Pallonji Group entities will be affected by Tata Sons move to snap business ties
growth in the category driven by sale of was-
hing machines and TVs , plans to ramp up the
installation services. We offer a range of over
Battle Continues
Mumbai: The board of Tata Sons 42 cos and nine According to
60 products across all top brands which will be under N Chandrasekaran has or- firms owned by SP estimates, SP Group
expanded further before the festive season, dered its group companies to scrap has got business
Group feature in
said Suchit Subhas, category leader for applian- all business dealings with Cyrus Tata Sons blacklist worth `20,000 cr
ces and automotive (parts) at Amazon India. and Shapoor Mistrys SP Group, from the Tatas
putting at risk transactions worth The directive to since 1980
Disruption: Startups & Tech 6
hundreds of crores of rupees. snap business ties
The move is a significant step to- sent to Tata Group Most TCS campuses,
Tata Motors Illustration: ANIRBAN
wards terminating all ties with cos on Aug 14
Union Cabinet the Shapoorji Pallonji Group and
indicates that the battle between
SP Groups sole
factories were built
connection with the
Okays CGST the two groups, which was ignited

IT Ministry Seeks
Tatas will be as a An SP Group source
when Cyrus Mistry was sacked as shareholder, said transactions
Refund Scheme Tata Sons chairman in October
last year, is showing no signs of
without board
representation. It
with Tata Group
has been reducing

Details of Great
The government has coming to an end. SP Group holds owns 18.4% stake in over the last few
about 18.4% in Tata Sons. the Tata Sons years
approved a new metro
Almost 50 companies of the SP
rail policy, a scheme to Group will be affected by the Tata
refund central goods and services
tax (CGST) to industrial units in
Himachal Pradesh, Uttarakhand,
Sons board decision taken on Au-
gust 9. Cyrus Mistry and elder brot-
her Shapoor Mistry each own half
of the privately-owned SP Group.
A top Tata Group source said the
decision to terminate all forms of
business dealings, whether di-
rectly or indirectly, through cont-
The directive has been sent to all
group companies including Tata
Steel, Tata Power, Tata Chemicals
and Tata Motors. Smaller group
Tata Trusts to Raise
Fund for Startups
Firewall of China frameworks, guidelines and
Jammu & Kashmir and the North- Emails sent to Tata Sons didnt racts or sub-contracting arrange- firms such as Voltas and Trent, standards followed for provi-
East till 2027, and changes to the elicit any response till press time. ments, with the SP Group came which is chaired by Noel Tata, half-
Tata Trusts is looking Directs 21 handset ding secure transmission and
ET reviewed a copy of the letter, after disparaging statements brother to Ratan Tata and brother- to raise a fund to storage of data, a senior official
strategic disinvestment policy to which was sent to one of the Tata made against Tata Sons by Cyrus in-law of the Mistry brothers, have invest in social sector
makers to submit in the ministry said. The details
speed up decision-making. The group companies asking it to take Mistry and his associates, with received the order. All Tata group have been sought irrespective of
Cabinet approved the CGST refund necessary steps to terminate all the intention of casting a negati- companies are said to be acting on
startups in the next few months, security protocols whether the companies make
business dealings with SP Group. ve light on the Tata group. the Tata Sons directive. reports Surabhi Agarwal.7 their devices in India or import
scheme with a budgetary alloca- for all devices them.
tion of `. 27,413 crore, which will He added that
come as a big relief for pharma, Our Bureau the govern-

SoftBank Hits the Road Again, in Talks

Apart from
auto and FMCG sector.13 Chinese cos, ment will verify
New Delhi: The ministry of firms which the details pro-
electronics and IT has directed have been vided and war-
21 smartphone makers, most of ned of action if

with Rivigo to Invest At Least $100 m

asked to
Corporates Struggling to Adjust which are Chinese, to inform it provide details it is revealed
Past Credits against GST about the procedures and pro- include global that some have
cesses they follow to ensure the players such as failed to meet
A top conglomerate may have to shell out a bit deals over the past six months. In security of mobile phones sold Apple and security requi-
extra in advance tax this quarter due to an
unusual glitch in the tax returns form. Another
Transaction could Ticket to a New Trip The logistics sector
is poised to benefit
April, the Tokyo-based technolo-
gy-to-telecom conglomerate in-
in India, following reports of da-
ta leakage and theft.
Samsung, and rements. Under
home bred co the IT Act, a
from the rollout of
Delhi-based firm, which does not want to bear value three-year-old Rivigo counts Warburg Rivigo has raised over
$100 million GST, which
vested $1.4 billion in Noida-based
Paytm, valuing it at about $7 bil-
The smartphone makers,
which include global players
Micromax company has to
make sure that
any extra tax, may simply deduct the dues Pincus and SAIF Partners as
removed state-
before the GST kicked in on July 1and pay a transport service its main investors in debt and equity
financing till date, imposed taxes,
lion. Last week, it acquired a $2.5-
billion stake in Flipkart, taking
such as Apple and Samsung, it keeps the data of users safe.
Chinese makers such as Oppo, Violations can be punished by
smaller net amount. The startup is the largest lowering
provider at nearly $1 b buyer of trucks in India over
across multiple rounds
its total investments in Asias Vivo, Xiaomi, Lenovo and Gio- unlimited compensation and
Economy: Macro, Micro & More 13 the last two years and is one It scaled up to third-largest economy this year to nee, besides home bred ones penalties of . 5 crore through
costs significantly
2,100 trucks in March $6 billion. such as Micromax have been as- state-level arbitrators.
llllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll Biswarup Gooptu & of the rare startups in India
that has been able to and has more than Deepak Garg, chief executive of ked to provide details about se-
Madhav Chanchani 4,000 drivers Rivigo, denied the company is in curity practices, architecture, August 28 Deadline15
Roads Ministry to Invite Bids for 11 receive bank financing
talks with SoftBank. A SoftBank
NHs Under TOT in Mid-September Bengaluru: SoftBank Group spokesperson declined to com-
The road transport and highways ministry is set Corp, the largest investor in Flip- discussions. ing at $200-400 million. These peo- ment.
to invite bids for 11national highways next
kart, Paytm and Ola, is in talks The investment, if it goes ple declined to be identified as the Rivigo has emerged as a favou- CARGO COS ASKED TO CUT TARIFFS AFTER GST
with Rivigo Services to invest at through, could value the three- discussions arent final yet. rite of investors in the last couple
month under its toll-operate-transfer (TOT)
model as it seeks to raise Rs 6,500 crore, a top
least $100 million in the surface-
transport logistics provider, ac-
year-old company at nearly $1 bil-
lion, one of them said, while an-
SoftBank has been ramping up
investments in India at a rapid
of years. Cos Seek Logistics Benefits
government official said. cording to five people aware of the other pegged the potential fund- pace, having closed two massive Valued at About . 2,800 cr15 With the implementation of the goods and
Economy: Macro, Micro & More 13 services tax (GST) eliminating octroi check posts
. 1,200-1,500 CR
llllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll in the country and speeding up transportation
SoftBanks Investment Push Fairfax Eyes Infibeam Stake of cargo, companies across sectors are now
Govt Bans Export of Gold Items
For SoftBank, Flipkart and Paytm mark the start of a big Prem Watsa's Fairfax Financial Holdings is in advanced haggling with logistics companies to pass on cost benefits in
Above 22-carat Purity
investment push (after former honcho Nikesh Aroras talks with Infibeam to pick up 10-12% for around . 1,200- the form of lower charges, reports Anirban Chowdhury.8
The government has banned exports of gold
exit in June 2016), reports Shelley Singh.18 1,500 crore, report Sneha Shah & Arun Kumar.9
jewellery, medallions and other articles above
22- carat purity in a bid to check round tripping
of the precious metal.

Market Tracker
PPA Rejig: Centre Takes Wind
Out of State Discom Bullies
BSE Midcap 15,282.34 1.26
BSE Smallcap 15,611.68 1.31
Concerned Goyal Power Play
Re/US $ 64.15 -0.05
opposes violation of Fierce competition in
solar and wind power
This prompted many
state discoms to ask
Centre may send advisory
to states, cautioning
Gold Std* 28,885# -0.66 contracts that have auctions along with
falling gear prices
project developers
to sell electricity at
them about adverse
implications of their
Silver (`/kg) 38,800# -1.27 already been signed have helped tariffs
tumble to record
lowest available rate
even if contracts
efforts to arm-twist cos
Bankers say the action
Brent ($) 50.58 0.12 lows, making older were signed when by states will discou-
Kaavya.Chandrasekaran projects look very costs were much rage lenders & investors
*(`/10gm); #Prices in Bengaluru Compiled by ETIG Database costly higher in the sector

New Delhi: The Centre has taken a

stern view of state distribution com- sive expansion of renewable energy
panies violating contracts by bully- capacity, which has made India a India Power in Talks to
Should India stop seeing
China as its competition?
ing solar and wind power developers
to cut prices, which bankers say will
world leader in growth of wind and
solar generation.
Buy 110 mw Capacity
discourage lenders and investors. The government view is very clear India Power is in talks with
41% 57% 2% The minister for power, coal, rene- that the legal framework has to be re-
YES NO CANT SAY wable energy and mines, Piyush Go- spected. All PPAs, whatever are the three large non-power
TODAYS QUESTION yal, has expressed concern at the de- legal terms and conditions, they will companies for acquiring
Do you think MBA and engineering courses velopment and has opposed viola- be respected. But if a PPA has a mutu- their renewable generation capacity
are losing their sheen among India's youth? tion of contracts that have already al negotiation clause, and somebody been signed. is willing to do it, then what can be do- totalling 110 mw. Due diligence for
Goyal is spearheading Indias mas- ne? he told ET. the assets are currently on.

Birla Hires Old Balaji Hand for New Round of Applause

Ropes in Sameer Nair in bid to make binge-worthy entertainment content for telcos and digital platforms
revive its defunct unit Applause We plan to reignite Applause En-
Megha Mandavia & Baiju Kalesh Entertainment to make binge- tertainment to invest in the creation
worthy entertainment content for and distribution of content in film,
Mumbai: Aditya Birla group chair- telecom operators and digital plat- television and digital for new audien-
man Kumar Mangalam Birla has forms such as Netflix, Amazon and ces and new markets, Birla told ET.
hired Sameer Nair, the former group Hotstar. The move will position I am excited with the possibilities
chief executive of Balaji Telefilms, to Applause to take advantage of the and opportunities that beckon as the
cord-cutting trend audiences telecom, media and entertainment
shifting to video streaming on phones worlds collide and converge.
and other devices from broadcast India is witnessing an increase in
up to `300 CRORE 15-20 SHOWS television. content consumption on mobile
in his personal capacity in across the drama,
Birla will invest up to Rs 300 crore in phones via over-the-top (OTT) plat-
Applause Entertainment in romance, crime and
his personal capacity in Applause forms such as Hotstar, Netflix and
first year of operations thriller genres
Entertainment in the first year of its Amazon Prime video on the back of
It may also occasionally produce movies. The content operations to make 15-20 shows across an improvement in broadband spe-
studio will make shows in Hindi, Tamil and Telugu to the drama, romance, crime and eds, lower 4G internet tariffs and
start with and then move to other languages thriller genres. It may also occasio- cheaper smartphones. Apart from
We plan to reignite Applause Entertainment to nally produce movies. The content OTT platforms, telecom companies
invest in the creation & distribution of content studio will make shows in Hindi, such as Reliance Jio Infocomm and
in film, television & digital for new audiences & Tamil and Telugu to start with and Bharti Airtel have their own strea-
KM BIRLA, Chairman, Aditya Birla group then move to other languages. ming services.
Illustration: ARINDAM


Visit This | Workshop

City in Numbers NBF Click Away is a two-day photography workshop for

citizens aged 55 and above. Organised by Silver Talk-
ies, a social enterprise for elders, it will be conducted

LAKH GoK r entrusted with job of protecting by professional photographer PeeVee. The workshop
includes an introduction to basic photography, composi-
TWO-WHEELERS #Bengaluru lakes. Just coz proceedings tion guidelines, camera know-how and a photo-walk
through Ulsoor Lake. It is priced at `1500 and the par-
AS ON JUNE 30 b4 NGT were stayed doesnt mean GoK ticipants are required to carry their own DSLR cameras.
The workshop starts today at Yogi-sthaan, Indiranagar,
THIS YEAR must not work 2 save lakes at 2 pm. For details, email - or
call Nidhi: 9980508000 / Chitra: 9886283816.

TAKES its personnel to fog
City Airport
Majestic Looks areas hit by floods
Our Bureau
Mosquito Breeding
The Bangalore
Down Upon Bengaluru: Tuesday mornings un-
precedented rains, which left several
localities in the city flooded even on
Wednesday, have raised the fear of
Raises Epidemic Fears
Airport (BIAL) waterborne diseases. As stagnant wa-
has completed work on
upgrading its runway.
The work was taken up
in February this year to
Citys bustling transport hub scores poorly
ter becomes breeding ground for
mosquitoes, dengue and malaria
could be lurking around.
The Bruhat Bengaluru Mahanagara
Palike has deployed health personnel
drawn from unaffected zones to launch
support the growing
traffic at the airport. on pedestrian-friendly infrastructure awareness campaigns as well as under-
take fogging operations in the flooded
The project included The Directorate of Urban Land areas of southeast and south
the building of two rap- Transport (DULT), in its latest report, Bengaluru. With sump tanks in many
id exit taxiways (RET). has suggested putting up a shelter from of these areas flooded with rainwater
With the addition of Bengaluru: Majestic is Bengalurus the Metro station to the existing subway. and sewage lines overflowing, resi-
the two RETs, the per transit nerve centre. The city railway BMRCL MD Pradeep Singh Kharola dents are being advised to consume
station, the Metro, the mofussil bus ter- said the corporation is planning to build only boiled water. BBMP Health Officer
hour capacity has in- minal and the city bus terminal are all a pedestrian skywalk across the Gubbi (South) Dr Manoranjan Hegde said his
creased to 38 air traffic within a stones throw of each other. Yet, Thotadappa Road. We have written to priority is to combat typhoid, jaundice
movements (ATMs) and this hub scores poorly when it comes to the BBMP for permission. Once it is and diarrhoea, which are water-borne
is set to increase to 44 easy and safe movement of commuters cleared, we will fund the skywalk pro- diseases. Another team of health in-
ATMs per hour. from one mode to the other. ject, he said. All the stakeholders in- spectors is taking up fogging opera-
But for a foot overbridge and an ill- cluding BMTC, KSRTC and BBMP tions, primarily to kill mosquito larvae
maintained subway, there is no pedes- would hold a meeting to improve inte- which breed on stagnant water.
trian-friendly infrastructure in this gration of Majestic, he said. With stagnant water and muck all
bustling centre. over the place, the roads have become a
Its exactly two months since Namma breeding grounds for mosquitoes, said
NSD Cleared Metro started full-fledged operations on Vidya Shankar Narayan, a resident of
Out of Guru its Phase I network. Yet, there is no ac-
cess for passengers from the Majestic
JP Nagar. Waterlogging has come
down but we are worried about our RAIN
Nanak Bhavan Metro station to the KSRTC and BMTC
bus stations. What could be a two-min-
health. Contaminated water has en-
tered into our sump and the house. We PAIN
The National ute hop from the Metro station is cur- are still cleaning them, she added.
School of Dra- rently a long-winding 15-20 minute trek. Although water in the flood-affected
ma (NSD) Ben- Commuters who wish to switch be- areas of Bengaluru has receded to a
tween the Metro and train services find larger extent, mounds of muck contin-
galuru Centres belong-
it no less difficult. The choice is to either ue to deface entire neighbourhoods.
ings were thrown out take the dirty and ill-maintained under- THEY ARE NOT LINKED Gayathri Kapoor, a businesswoman and water drain network in Koramangala is
of its Guru Nanak ground subway or jaywalk. At any giv- resident of ST Bed Layout, was among incomplete. This led to flooding in a few
Bhavan headquarters en time, a number of people risk their There is no access for the many who stayed away from office residential areas. The remaining work
lives to cross the barricade (which is to clean their houses. Pumping out all will be complete in 20 days, he said.
in Vasanth Nagar. Ac-
cording to director C mainly put up to discourage jaywalk- passengers arriving at the water is a two-day job. Water entered Gowda blamed loads of thermocol
Basavalingaiah, stage
ing) to access either modes of transport.
The only consolation is the footover
the Majestic Metro out kitchen and living room and dam-
aged several household articles. If the
dumped in the drain in Koramangala
for the flooding. We cleared three
equipment, props and
costumes worth lakhs
bridge (with roof shelter) which bridg-
es Gubbi Thotadappa Road to
station to KSRTC and city corporation continues to be negli-
gent, our houses will flood again.
truckloads of thermocol from a drain
near Sony World junction. They were
of rupees were thrown Dhanvanthri Road. This facility, con- BMTC bus stations Nishanth N, who works for HP, took a blocking the flow of water, he said
on the street by the nected to the subway, helps people to get bus to work as his bike, parked in the Residents of Dollars Colony in JP About 36 hours after
state department of down to any BMTCs platform and ac- BBMP Commissioner Manjunath basement, is still under water. There Nagar have demanded the widening of
heavy rains pounded
cess KSRTC, to some extent. Prasad said the Palike is spending `130 are 15 cars and 40 bikes in the basement the storm water drain. Gowda said,
sports and youth em- The existing foot overbridge is help- crore to upgrade six roads in and which is still flooded, he said. Ravi M, a Since the place was once a lake, excess Bengaluru, life has
powerment, the owner ing people access different modes of around Majestic on tenderSURE guide- resident of Koramangala fourth block, rain is likely to flood the area again. been anything but
of the space. transport. It would be good if it is ex- lines. Walkability on 10 km of footpaths is distressed by the inadequate meas- A building, which was under con- normal for the resi-
tended up to the KSRTC terminal and will improve once this is implemented. ures taken by the authorities. struction in Ejipura, tilted raising fears dents of Koramangala
the Metro station. This will surely pro- BMTC and KSRTC see a total of 4 lakh BBMP chief engineer (storm water of a collapse. Minister Ramalinga
Send your feedback to vide safe movement for commuters, footfalls in the Majestic bus stand while drain) Sidde Gowda said the strength- Reddy, who inspected the spot, asked the and the surrounding Shiva Kumar, a management profes- Metros Kempegowda Metro station is ening of drains is a work in progress. BBMP to demolish the five-storied areas.
sional, who uses this terminus, said. the busiest station. Only 600 metres of the 13.5-km storm building, which incidentally is illegal. N NARASIMHA MURTHY


Turmerics the Talk of Town Chefs that one need not look out of the country for turmeric include 48 Degrees East which culinary innovation, she believes. Sumatran chicken dumpling skewers
Its antiseptic property is pushing the with turmeric. Raw Pressery has recently
Bengaluru: Care for a hot cup of turmeric turmeric movement further in times of launched a turmeric-based cold pressed
latte? It is, after all, the current hot selling rising health-consciousness. Chefs like juice called Heal. Toast & Tonic used to
beverage in the West. The golden milk is Vikas Seth launched the menu of Pan- serve turmeric leaf ice-cream.
nothing but our good old haldi-ka-doodh Asian eatery Sriracha (earlier Singkong Foodies are experimenting with turmer-
every Indian mothers quick-fix for flu. at UB City) with a bean curd soup with ic at home too. Take the case of food stylist
Just like rosemary and thyme, which have turmeric, silken tofu Ambica Selvams home bakes. I use tur-
gone international, our turmeric is gain- meric in both sweet and savoury cakes. I
ing global attention. make custard using turmeric and ginger.
Bengalurus eateries too are giving the Turmeric hummus, turmeric oatmeal,
aromatic healer its due by taking it beyond spiced apple cakes, pancakes and coconut
its pinch of worthiness in Indian cur- laddoos also shape up really well, says
ries. Chefs here are celebrating it as a Selvam, who feels that kokum and tama-
showcase ingredient. rind also have potential for such creativity.
Turmeric paints the menu yellow According to food expert Aslam Gafoor,
at the newly opened Tobey resto-bar in there has been a shift from culinary
Koramangala, in dishes and drinks like gimmicks like liquid nitrogen and quirky
turmeric & honey chicken, turmeric and Chinese wine. He is also working on a serve-ware to classic ingredients in the
and curd dip and a turmeric and vodka dumpling skin using turmeric. Turmeric past one year.
cocktail. Co-founder Bency Elizabeth for its colour, flavour and health bene- Rediscovering food is trendy. Its now
Oommen says, We are experimenting fits is being explored in its totality now. cool for a chef to use a local ingredient.
with turmeric in continental food. It has Once known as the cheap saffron of Indian Our staple spices, which have been taken
generated a new flavour profile which ac- cuisine, turmeric is being used as an ex- for granted, deserve due recognition.
tually requires an acquired palate. India perimental additive, says Seth. Forgotten food like turmeric, millets and
is home to such a vast range of seasonings Other menus that are giving an accent on broken wheat is the future, he says.

UVCE is on a Sticky Wicket

Despite Scoring a Century ing School of Engineering that was started by
UVCE SV Shetty in 1913. Shetty was an electrical en-
Date with History gineer who worked closely with the education

hat pleases the eye on the outside need and public works department.
not necessarily be in appealing on the Author and academician K Chidananda
ET EXPLAINS inside. People who live or work in Gowda enrolled into UVCE for a five-year un-
some of Bengalurus heritage structures, for dergraduate engineering course in 1959. For
THE STORY BEHIND instance, will take you beyond the old-world him and many other illustrious alumnus
THE NAMES grandeur to seepage, crumbling walls, falling
ceilings and broken plumbings. The
including aerospace scientist Roddam
Narasimha, computer scientist S Iyengar, sci-
University Visvesvaraya College of entist Vasudev Kalkunte Aatre, actor Ramesh
Engineering (UVCE), the oldest engineering Arvind and playwright-filmmaker Prakash
college in Karnataka (fifth oldest in India), has Belawadi the college represents hope, intel-
been in a similar pitiful state for years now. lectual curiosity and memories.
Whats more, the governments solution for The campus had a lot of space and many old
this oversight is not restoration of heritage trees and I stayed at the adjoining hostel. In
structure. Instead, it wants the entire college my second year, Visvesvaraya visited the col-
to be shifted out to the far-flung Bangalore lege. He was 100 years old. I remember seeing
University (BU) headquarters at the him from a distance and being awestruck,
Jnanabharathi Campus, under which the KR Gowda said. Most alumnus say the shifting of
Circle-based heritage institution falls. And all the college is impractical. Instead, we can
this is happening in UVCEs centenary year. start new courses at the BU campus and run
UVCE is known for producing some of the the college through multiple campuses.
brightest engineering minds. The college was UVCE is part of the Palace-to-Palace
built in 1917 by Sir M Visvesvaraya, the father Corridor conceptualised by architect Naresh
of modern Mysore state, who was also the de- Narasimhan, who listed 40 heritage buildings
wan from 1912 to 1918. It was initially called as in the same stretch. According to him, the gov-
the Government Engineering College. The ernments indifferent attitude breaks links
college, along with the Central College (1882) with history. People will not have pride in the
and Government Arts College (1886) , was city unless there is historic continuity. We
built as a result of the massive irrigation, pow- need to see visual remnants of the past
The relocation of er and railway projects that received an impe- around us, he said. The shifting has invited
tus after the Great Famine of 1882. opposition from various quarters. Today, the
Karnatakas oldest UVCE, especially, was an answer to the de- All India Democratic Students Organisation
engineering college mand for skilled workers and supervisors that
these projects required. In the initial days, stu-
is organising a protest.

invites opposition dents found accommodation at the neighbour-


INDIAN NARRATIVE ENDORSED A SCHEDULED MEETING Border Personnel Meeting comes a day after scuffle in Ladakhs Pangong Lake

US Declares Hizb Officers Talk to PLA Counterparts

as Foreign Terror Issues discussed to
cussed to strengthen existing mech-
anism for peace and tranquility. The
incident (clash) that took place yes-
US Wants India, China
trolled after a drill when both sides
held up banners proclaiming their
right over the area, before returning

Organisation strengthen existing terday (Tuesday) was also dis-

cussed, a senior government
to Hold Direct Dialogue to their respective positions.
One-third of the lake is in India and
official said. Both sides raise WASHINGTON: The US two-thirds under Chinese con-
mechanism for peace, issues during such said on Wednesday that trol. Incursions from the
meetings and meas- it wants India and China Chinese side take place
says a senior official ures are taken to en- to engage in a direct dia- regularly every year, but
Two months back its LeT Commander sure that clashes as logue to reduce tensions. The US re- not clashes. A Chinese for-
such that happened on eign ministry said she was
chief Syed Salahuddin Lelhari Killed Tuesday are not repeated.
marks came a day after Indian bor- not aware of the incident and
der guards foiled an attempt by
was designated a in Encounter New Delhi: Senior officers of the
PLA soldiers tried to in-
trude Finger Four and Finger Chinese soldiers to enter Indian ter-
added Chinese troops were com-
mitted to maintain peace along
SRINAGAR: A self- Indian Army and Chinas PLA Five areas, twice, along the ritory along the banks of the fa- LAC. BPMs are held between the
global terrorist styled district held a meeting on Wednesday to banks of the 135-km long mous Pangong lake in Ladakh. We IndianArmyandPLAatfivelocations
commander of discuss the clash between soldiers Pangong Lake between 6 am and 9 are encouraging both parties to sit along the LAC on Independence Day
militant outfit that took place a day at Pangong am on Tuesday. ITBP forces blocked and PLA Day every year. India was
DipanjanRoy.Chaudhury Lake in Ladakh. The Border the path of PLA soldiers, who alleg- down and have a direct dialogue, looking forward to BPMs that were to Lashkar-e-Taiba (LeT) was State Department spokesperson
Personnel Meeting was, however, edly pelted stones. The Indian troops be held on August 15, but they didnt
killed in a brief encounter scheduled a week ago. retaliated and a scuffle ensued, in Heather Nauert said at a takeplacebecausePLAdidntrespond
New Delhi: The United States has with security forces in Pul- It was a scheduled meeting in which several soldiers on both sides press meet. PTI to the invites. PLA didnt invite the
designated Hizbul Mujahideen as a wama district of Jammu and Chushul (in Leh). Issues were dis- were injured. The situation was con- Indian Army for BPMs on August 1.
Foreign Terrorist Organisation and Kashmir on Wednesday, po-
Specially Designated Global lice said. The security forces
Terrorist, less than two months after
its chief Syed Salahuddin was desig- had launched an anti-mili- If Chinese had invited India on Aug 1 & accepted Aug 15
nated a global terrorist. The tags aim tancy operation in Kakapora DIPLOMACY NOTES
to deny HM resources needed to carry area of Pulwama district fol- invite, they would have embarrassed themselves

Chinas Dokalam Mistake: Whether

out terror attacks. lowing information about
The Department of State has desig- presence of militants there,
nated Hizbul Mujahideen also
they said. Ayub Lelhari, dis-
known as Hizb-ul-Mujahideen, also
known as HM as a Foreign Terrorist trict commander LeT, was

it Steps Back or Ups Ante, it Will Lose

Organization under Section 219 of the killed in the encounter with
Immigration and Nationality Act, and security forces in Pulwama,
as a Specially Designated Global a police spokesman said.
Te r r o r i s t u n d e r Lelharis death is yet anoth- NAILING CHINESE LIE
Section 1(b) of
E x e c u t ive O r d e r
13224, the US State
Department said in a
er success in fight against
militancy, he said. PTI
being fired by either side. This is
remarkable as men in uniform are
observing discipline and self-re-
Those enamoured of China
there are many in the West and more
numerous in India than is warrant-
Hizb has
statement on
Wednesday. These
claimed re- designations seek to
NIA Conducts
straint even when in direct physi-
cal contact with the enemy.
Not much should be read either
ed by years of Chinas adversarial
policies towards us and have ro-
mantic notions about it wrongly be-
Never Gave
sponsibility deny HM the resources
for several
attacks, in-
it needs to carry out ter-
rorist attacks. Among
Raids on Hurriyat
Sympathisers KANWAL SIBAL
into China skipping the ceremonial
border meetings on Independence
Day and failing to invite the Indian
lieve that as a country it is almost in-
fallible in policy-making because it
calculates and plans carefully in a
up Claims
cluding Apr other consequences, all
2014 explo- of HMs property and
sives attack interests in property
has raided When the news lacks real content,
exaggeration serves as a filler. This
side on August 1 to celebrate the
founding of the PLA, as has been
the established practice in recent
longer-term perspective. In reality,
China has made horrible mistakes
internally and externally. The Great
on Dokalam
around eight
in J&K... subject to US jurisdic- is true of the latest press reports of years as part of mutual confidence- Leap Forward cost millions of lives
tion are blocked, and places across the Indian and Chinese patrols clash- building gestures. For one, the and the Cultural Revolution has DipanjanRoy.Chaudhury
Valley, mostly targeted at Sri-
US persons are generally prohibited ing on the Pangong lake in Ladakh, Chinese seem to have explained po- proved an absurdity in view of the
from engaging in any transactions nagar-based businessman implying a linkage with the litely at the local level their inability rampant capitalism in China today,
with the group, the Department said. Zahoor Watali known for his Dokalam standoff and China open- to attend the August 15 ceremonial the brutal exploitation of its peas- New Delhi: The executive and leg-
Hizbul Mujahideen has claimed links with separatists. The ing pressure points elsewhere on meeting in view of the present cir- antry to achieve break-neck econom- islative arms of the Bhutanese gov-
responsibility for several attacks, in- our long border with Tibet. cumstances, leaving the door open ic growth and Xi Jinpings promo- ernment have categorically rejected
cluding the April 2014 explosives at-
searches were carried out at Actually, such jostling on the lake for continuing informal friendly tion of Confucian values (and other Beijings recent claims that
tack in the state of Jammu and the residences of Watalis waters occurs often and is nothing contact on the ground. Actually, if sources of Chinese culture) as em- Thimphu considered Dokalam, lo-
Kashmir, which injured 17 people family, relatives and aides in new. When India plied slower, infe- the Chinese had invited the Indian bodying the spiritual experiences, cated in the crucial tri-junction
terrorism designations expose and Srinagar, Pulwama, Hand- rior vessels on the lake and the side on August 1 and accepted our rational thinking and cultural with India, as a part of China.
isolate organizations and individu- wara and Baramullah dis- Chinese were equipped with speed- invitation for August 15, they would achievements that have nour- The records of the latest proceedings
als, and deny them access to the US tricts. NIA also raided house ier, more powerful ones, they had have embarrassed themselves po- ished the flourishing Chinese na- of both Houses of the Bhutanese
financial system. Moreover, designa- the advantage and got the better of litically. With their belligerent rhet- would have publicised these border tion. Externally, China has alienat- Parliament seen by ET do not support
tions can assist the law enforcement of Muhammad Shafi Reshi, a us in these jousts, but with India ac- oric at the official level, outrageous meetings on days that are of sym- ed virtually all its neighbours and, Chinas claim on Dokalam. The re-
activities of US agencies and other senior advocate associated quiring heavier American-built outpourings of the state-controlled bolic importance to both sides, with the breakdown of its ties with cords, instead, make it clear that
gover nments, the US State with Hurriyat and uncle of boats there is more verve on the media against India and blinkered much to the discomfiture of those in North Korea, has no friend except a Thimphu has been consistently refer-
Department notification said. PDP MLC Yasir Reshi. The Indian side in such encounters. analysis of the situation by their China baying for Indian blood be- semi-rogue state like Pakistan. ring to Dokalam as one of the disput-
The US decision to designate both agency has raided 7-8 places This testing of horsepower on the reputed India experts, a show of am- cause of our temerity in checkmat- Chinas provocation in Dokalam is ed areas between Bhutan and China,
Salahuddin as a global terrorist and lake will go on, but the important ity and goodwill at the India-Tibet ing them on the Dokalam plateau. It another mistake. Whether it steps and that it has never given up its claim
HM as a foreign terrorist outfit is an
in different districts, mostly thing is that agreed protocols are border would have been incongru- would have been read as a signal back or raises the ante, it will lose. on the territory. Dokalam, along the
endorsement of Indias narrative on connected to Zahoor Watali, being observed and, even if stone- ous, to say the least. They would that China is not planning to open disputed border between Bhutan and
Kashmir, sidestepping intense diplo- a police official told ET. OPB pelting has taken place according have made a mockery of their own up new fronts and that its bluster The writer is a former China and at the tri-junction (India-
macy undertaken by Pakistan. to unverified reports, no bullets are ultimatums and threats. India should not be taken at face value. foreign secretary Bhutan-China), is the site of the eye-
ball-to-eyeball troop deployment by
India and China since mid-June.
Last November, for-
NEW NOS Of the 43 local bodies, BJP won 26, Cong 14 and independents 3. BJP had won 29 local bodies in the last election eign minister Damcho
Dorjee told Bhutans

Cong Gets a Lift but BJP Wins MP Local Body Polls

National Council that
Dokalam was among
the disputed areas be-
Bhutanese tween the Himalayan
Parliament state and China. He
Congress. The farmers agitation in since 2003 and is battling anti-in- BJP chief Amit Shah will be records do was responding to a
July over low prices for their pro- SHAH HEADING cumbency due to a host of reasons. spending three days in Madhya not support q u e s t i o n f r o m
duce had come as a surprise for the The Vyapam scam and the farmers Pradesh from August 18 where he Chinas TsheringDorjee, a
Shivraj Singh Chouhan govern-
TO MP unrest have got the Chouhan gov- will meet party office bearers to claim on member of the
New Delhi: BJP won 26 of the 43
local bodies that went to polls in
ment. The mishandling of the pro-
tests was clear when the police
BJP chief ernment a lot of flak. The voices
within BJP that suggest Chouhan
discuss ways of increasing the
partys political footprint.
Dokalam National Council from
the Haa district in
Madhya Pradesh but the impact of opened fire that led to the death of Amit Shah should be replaced before the polls Meanwhile, BJP has claimed victo- westerm Bhutan, according to the
the recent farmers agitation that five farmers. The protests were have been growing louder in the last ry in the local bodies elections with records of Bhutanese Parliament
led to the death of five people in launched by several farmers bodies, will be few months. Congress is trying to get Chouhan crediting Prime Minister seen by ET.
police firing was visible with the
saffron partys tally falling by
including those affiliated to the
Sangh Parivar.
spending three its act together in the state with the
party high command ensuring its
Narendra Modi and party chief Amit
Shah for this performance. BJP
Dorjee made the statement four
months after Bhutan and China had
three since the last election while Of the 43 local bodies that went to days in MP from tall leaders from the state do not fight spokesperson GVL Narasimha Rao held the last of the 24 rounds of bor-
the Congress won three seats in polls, BJP won 26, Congress 14 and each other for supremacy and the said, Despite repeated claims of the der negotiations. As the two neigh-
Mandsaur, the epicentre of the three seats were bagged by August 18 party paying the price for it in the Congress of revival and its continued bours did not hold any further nego-
protests. Independents. BJP had won 29 local Assembly elections. criticism of the state government, tiation on the boundary dispute since
In what could ring alarm bells for bodies in the last election. Congress A weak and divided Congress in Congress has faced yet another elec- August 2016, Bhutan has not reached
the BJP with the Assembly polls just has increased its tally by five in these wards of Shamgar Nagar Panchayat matter of concern for the party as Madhya Pradesh has been BJPs big- toral debacle. Rahul Gandhis photo a breakthrough with China on the
a year away, these could be signs of polls from the last time. and one ward of Garoth Panchayat- the farmers agitation had taken gest strength. BJP also has a strong politics in Mandsaur has been re- dispute over Dokalam, persons famil-
the party losing ground to the That BJP lost three seats- two in Mandsaur district should be a place here. BJP has been in power RSS support base throughout MP. buffed by the people. iar with the matter indicated.

Nepal PM Deubas Maiden

Foreign Trip Begins with
5-Day India Visit on Aug 23

New Delhi: India is set to host Nepalese Prime Minister

Sher Bahadur Deuba later this month as part of efforts to
step up engagement with the Himalayan nation at a time
when China is seeking to increase its influence in the region,
including Bhutan. Deuba is expected to begin his five-day
visit to India on August 23, his first foreign trip after being
elected the prime minister for the fourth time two months
ago, according to people aware of the matter.
That Deuba chose India as a destination for his maiden trip
abroad reflects close nature of Indo-Nepal ties, they said,
amid Chinas relentless efforts to expand its sphere of po-
litical and economic influence in the landlocked Himalayan
state, including extension of Belt and Road Initiative (BRI).
A slew of India-assisted development and economic proj-
ects will figure high on the agenda during Deubas trip, said
a Nepalese observer, who did not wish to be identified. These
include finalisation of a joint detailed project report for the
Pancheshwar Multipurpose Project. The trip will provide
Deuba, who signed the Indo-Nepal Mahakali Treaty in 1996,
an opportunity to discuss with the Indian leadership imple-
mentation of the Pancheshwar project, the person said.
According to reports Deuba is also likely to take up the is-
sue of `500 and `1,000 currency notes withdrawn by India
in November 2016 as part of the demonetisation drive. As
per a directive by RBI, from January 2015 any Nepalese in-
dividual visiting India was allowed to have `25,000 in de-
nominations of 500 and 1,000. This will be the third visit by
a Nepalese PM to India in less than a year unprecedented
in the recent history of Indo-Nepal ties. Then PM Prachanda
visited India in September last year, followed by another trip
for the BRICS-BIMSTEC outreach meet in October.


This will be the third visit by
a Nepalese PM to India in less
than a year unprecedented
in the recent history of Indo-Nepal ties

States & Region  5

We Have Vaangi Baath

Blue Whale to claim anybody can be made to do anything

Kerala Love Jihad Case:

City gets 101 Indira
Canteen outlets;
Siddu plans to
SC Orders NIA Probe court RV Raveendran. This is not the only isolated
launch it in all wards
Her father has alleged that she
was converted into Islam by or-
case, he said.
Referring to another instance,
ganisations which seek to re- he said: The entities appear to
New Delhi: Chief Justice of cruit them for extremist activi- be same. The pattern appears to
India JS Khehar on Wednesday ties, including the ISIS. be a girl has a disagreement
directed the National Drawing a comparison to the with her parents. After the disa-
Investigation Agency (NIA) to blue whale game, CJI Khehar, greement, she leaves home and
probe an alleged case of love ji- sharing the bench with Justice somebody gives them shelter.
had from Kerala, insisting that DY Chandrachud, observed: The person who gives shelter is
people can be brainwashed to Have you heard of the game the same and this requires
do anything these days and cit- Blue Whale? You can lead peo- investigation.
ed the recent example of a youth ple to anything these days. In both cases the same organ-
killing himself after playing the Senior advocate Kapil Sibal, ap- isations were involved. These
Blue Whale game. pearing for the husband of the organisations and people have
The game of dares prompts girl protested against the obser- links with (the now banned)
players to do crazy things, in- vation. You are presuming SIMI, Singh told the court. The
cluding killing oneself, and things, he told the bench. The girls were later on married off
send back proof. These are CJI clarified saying it was not to avoid family and court scru-
played through hashtags on so- prejudging the issue, rather tiny, he said.
cial websites. The government he wanted an independent Sibal and senior advocate
has moved to crack down on probe into the case. Indira Jaising also insisted that
them after a youth committed The court order came after the court meet the girl and as-
suicide recently in Kerala. the NIA, through additional certain her views before taking
Our Bureau The court was referring to the solicitor general Maninder a call.
Congress vice-president Rahul Gandhi, chief minister Siddaramaiah, city mayor Padmavathi and case of a 25-year-old woman Singh, claimed that prelimi- This is an inter-religious
Beng alur u: Chief minister who was allegedly brainwashed nary findings, arrived at marriage. You must be
Karnataka Congress in-charge Venugopal enjoy a meal at the newly launched Indira Canteen in
Siddaramaiah said all wards in while still in college into con- on the basis of Kerala careful. Sibal, appear-
Bengaluru will have Indira canteens by Bengaluru on Wednesday.PTI verting into Islam and later police investigations, ing for the alleged hus-
October 2, after Congress vice-president married off to a Muslim man by showed that some ex- band, accused the
Rahul Gandhi inaugurated 101 such out-
lets in the city on Wednesday.
The canteens, modelled on the highly-
popular Amma canteens in Tamil Nadu,
In One Month, Modi Destroyed her alleged guardian. Her fa-
ther had moved the Kerala HC
which restored custody of his
daughter to him, and annulled
tremist outfits were
converting and radi-
calising Hindu girls
to use them later as
girls father of keep-
ing her in custody.
The fathers put-
ting pressure on
will serve breakfast at `5, lunch and din-
ner at `10. We will copy pro-poor pro-
grammes from anywhere. We have im-
proved on the Amma canteens which
Congs 10-yr Work in J&K: RaGa the marriage. The High Court
had observed that a woman can-
not be married off without the
involvement of her parents.
recruits into or-
g anisations
such as the
her, Sibal

serve only breakfast and lunch. We are Congress vice-president says PM has alienated every neighbour of India Her alleged husband has now
serving three meals to ensure that no one moved the top court seeking to
in Bengaluru goes to bed hungry, BEHAVE..LIKE A PM attacking the BJPs anti-farmer poli- meet her. The top court on
Siddaramaiah said at the launch. cies and saying his party was the pro- Wednesday entrusted the task
An app has been developed by the
Bruhat Bengaluru Mahanagara Palike Bengaluru: Congress vice-president
He allowed his party tector of the rights of the kisaan.
It is only after I held meetings in Uttar
of probing her case to the NIA.
The probe body will report to a
(BBMP) to identify the location of the
canteens in the city, which also lists the
Rahul Gandhi on Wednesday attacked
Prime Minister Narendra Modi on his
people to beat Dalits and Pradesh for 30 days in a row and got two
lakh petitions from farmers that the
retired sitting judge of the top

menu and the operational timings of the

outlets. Siddaramaiah declared that
Kashmir policy, a day after the PM said
in his Independence Day speech that
kill the minorities. He government there reluctantly waived
off loans. In Maharashtra also, the gov-
none of the outlets were located in parks
or playgrounds, as is being alleged by the
neither gaali (abuse) nor goli (bul-
lets), only embraces will solve the is-
didnt say a word. He is ernment responded only after the
Congress put pressure. In Karnataka
opposition BJP leaders. The BJP does sue there. running out of things to and Punjab, our governments waived
not understand what it is to be hungry. Gandhi said former Prime Minister off loans for the farmers without pres-
We are the ones who understand that. If Manmohan Singh, former Union say. It is time he started sure from anyone. It is we who are the
Prime Minister Narendra Modi gives ministers P Chidambaram, Jairam protectors of the rights of the farmer,
you Mann ki Baat, we give you vaangi Ramesh and he had worked for five to behaving like the PM Gandhi said.
baath (a local dish), Siddaramaiah said. seven years without drama or tama- Gandhi criticised the cuts in the
Gandhi lauded the mission and ate sha, but silently to resolve the crisis
RAHUL GANDHI health budget in Uttar Pradesh and by
Cong vice-president
lunch along with Siddaramaiah, KPCC in Jammu and Kashmir. When I last the Centre, which he said had resulted
president G Parameshwara and others visited Kashmir in 2013, I came back draw a contrast with the policies of the in the death of more than 100 children
at the canteen. The taste of the food is and complimented PM Singh for NDA government. in Gorakhpur recently. The Prime
better than any top restaurant in the achieving peace. In one month, The Congress vice-president strongly Minister has no concept of sach Bharat
world. Even BJP leaders will stand in Modiji destroyed all that we worked criticised Modis foreign policy and said (true India). The hospital did not have
line to eat here, he said, in a lighter vein. for over 10 years. The only people the PM was swinging on a jhula with money, could not buy oxygen for the
who have benefited from this are the Chinese president when 1,000 sol- children. He (the PM) wants an India
Pakistanis, he said. diers from that country landed on where the rich go to private hospitals
FOR THE POOR Gandhi was addressing a mammoth Indian soil. He has alienated every and the poor die in government hospi-
rally at Bengalurus National College neighbour that India has. For the first tals. He does not mention this in his
BJP does not understand grounds, a BJP stronghold located in time ever, Russia is supplying arms to Independence Day speech, he said.
the heart of Union minister Ananth Pakistan, because of his policies. What The Prime Minister, Gandhi said, had
what it is to be hungry. Kumars Bengaluru South constituen- does he have to say to the fact that the spent the last three years dividing the
cy, that has seen speeches by party stal- Chinese army is in our neighbour country. He allowed his party people to
We understand that warts including Atal Bihari Vajpayee Bhutans land, which India has prom- beat Dalits and kill the minorities. He
and LK Advani in the past. ised to protect? he said. didnt say a word. He is running out of
SIDDARAMAIAH He stressed that the Congress was pro- Gandhi also set the tone for the partys things to say. It is time he started behav-
chief minister poor and pro-farmer, while seeking to campaign in the election-bound state by ing like the Prime Minister, he said.

Oops! Amma...Err...No....Indira
Bengaluru : A slip of tongue by Rahul Gandhi stop-
ping short of describing Indira canteens as Amma
canteens, named after late Jayalalithaa, caused a
flutter during the launch of the state governments
subsidised food outlets on Wednesday.
That is the vision of the Amma....the Indira
Canteen, he said as he corrected himself during the
launch of populist outlets.
Also, what caught everyones attention was his re-
peatedly mentioning every single city in
The chief minister has mentioned to me that
Bangalore is just the beginning, that he is going to
expand this programme to other cities. And soon, over the next couple of months,
every single city in Bangalore, every single poor person in every single city in
Bangalore will feel that in the state of Karnataka under Siddaramaih jis government
I simply cannot go hungry, he said. PTI

Sidelined Dhinakaran
says No Link between
TN Govt and AIADMK
Madurai on August 14 had
PTI now professed allegiance to
chief minister Palaniswami.
Cuddalore/Chennai: It was proved yesterday at
Claiming the support of Independence Day celebra-
AIADMK (Amma) rank and tions, Srinivasan said. His
file, sidelined leader TTV remarks come a day after his
Dhinakaran on Wednesday reported comments that the
said there was no link be- government was short of ma-
tween the Palaniswami gov- jority by two MLAs.
ernment and the party, and Dhinakaran alleged that
those working to capture the some ministers and office bear-
party through the back door ers were working to capture
should reform. the party through the back
Hitting back, the door and asked them to re-
Palaniswami camp said he form themselves. He mocked at
had no locus standi to issue the chief ministers camp for
such statements. trying to unite with the
In Cuddalore, forest minis- Panneerselvam faction which
ter Dindigul C Srinivasan was not very keen on it.
countered Dhinakarans Even if the two leaders
claim that the party was be- merged their factions, the
hind him, saying the govern- cadres were behind him and
ment had the backing of all Sasikala, proof of which was
134 MLAs. He asserted that the turnout at the Madurai
some legislators who had at- rally, the AIADMK deputy
tended Dhinakarans rally at general secretary climed.

Bank Manager Found Dead

Bengaluru: A 55-year-old manager with a coopera-
tive bank was found dead under mysterious cir-
cumstances inside his car near Shivanahalli flyover,
Kamakshipalya. The deceased MS Muniyappa, resi-
dent of RT Nagar is the manager with Sudha Coop-
erative society, Amrutahalli branch in north east
Bengaluru. Police recovered his body from his car
on Wednesday afternoon. Family, in its complaint,
said it was murder. OUR BUREAU

6  Disruption: Startups & Tech THE ECONOMIC TIMES | BENGALURU | THURSDAY | 17 AUGUST 2017

For comprehensive and

insightful stories about all
things startups and technology,
In the run-up to the grand finale of the
ET Startup Awards 2017, your favourite

with Large Appliance Sales

log on to

a newspaper presents a special series on the

Tweet OF THE DAY lessons that some of Indias most celebrated
entrepreneurs have learnt from their mentors
Online marketplace plans to ramp up installation services and geographical reach for the category
the push on high gross merchandise
value (GMV) category to clock-in a
for TV and large appliances category
earlier this year while rival Flipkart
cus, said Satish Meena, senior fore-
cast analyst at Forrester Research in
a previous interview to ET.
My Mentor Gave
Me the Hunger to
large share of sales during the sales expanded its supply chain to include
Bengaluru: With the festive season during Diwali. 10 FCs for the category. Amazon India During the recently-concluded Gre-
round the corner, online marketplace The platform had set up 12 dedi- is also scheduled to increase the cove- at Indian Sale event by Amazon held
Amazon India is training its sights on cated fulfilment rage of free scheduled deliveries to 51 from August 9 to August 12, the large

Learn from Mistakes

growing its large appliances sales. centres cities from the current 45 cities cove- appliances category registered a
The company, which claims a 400% (FCs) red under this. According to market growth of 10x over business as usual,
AUREN HOFFMAN year-on-year growth in the category reports, categories like furniture, to- with an overall spike of 15x for the TV
@AUREN driven by sale of air conditioners, ys, personal appliances, and segment.
washing machines, TVs and refri- small and large domestic The platform has also introduced no
past two years. When things
In B2B, owning a mar- gerators, plans to ramp up the appliances have grown cost EMI options on credit card, in li-
started going downhill at Zoma-
installation services and steadily till Febru- ne with easy financing options and
ket means your sales reach for the category. ary-March of 2017. exchange options. Close to 30% of to about 2 years ago, when we
and marketing costs We currently offer a For the upcoming our average large appliance orders had to layoff staff in the US and
range of over 60 products festive season, fas- avail the exchange option wherein shut operations in some coun-
go down dramatically tries, I took some of Sanjeevs
across all top brands hion along with they are given a waiver for the older
which will be expanded beauty and perso- models, said Subhas. advice to heart and reacted very
further before the festive nal care as well as Easy financing options and cash-
DEEPINDER GOYAL negatively. I thought this was
Tech Buzz season, apart from the home appliances backs driven by Amazon Pay will play CEO, Zomato all my fault.
But over time, I realised that
TeamIndus addition of other catego-
ries such as air purifiers.
will be the other
categories in fo-
a strategic role in the growth of the
segment, added Subhas. there is no way I cannot make
Whenever I am down and need mistakes. Everybody has got to
Gets Time We have recently partne-
red with LG for air purifi- some advice, the first person I learn and
go to is my wife Kanchan Joshi. one cant
for XPRIZE ers, said Suchit Subhas,
category leader for appli- Moving in 12 Dedicated fulfil-
A PhD from the Indian Institute be 100%
of Technology, Delhi, Kanchan right all
ances and automotive
(parts) at Amazon India. 400% 40 Cities co ment centres is a mathematics professor at the time.
Amazon In- plans to in- Delhi University and since she Thats
The marketplace will also
increase its installation servi- dias year-on- crease instal- 30% of Amazons has never worked in a corporate part of
ces for large appliances to 40 cities year growth in lation services large appliance or- set-up, I get a very unbiased life. I
by August-end compared to the 13 citi- ders avail exchange meaning of life. I discuss my think
the category to by Aug-end
es it currently services. This is part of deepest conflicts with her. what I now understand of what
I remember the advice from he said to me is that everything
Sanjeev Bikhchandani (foun- is your fault, but you should
Bengaluru: TeamIndus, der of Info Edge, the largest sha- quickly learn from these mis-

Survey Finds a Prime Reason Why

Indias only entry for reholder in Zomato) when he takes and make sure you dont
the Googles Lunar gave us our seed round seven repeat them. So you have to
XPRIZE, will now have years ago: Deepinder, every- constantly be in learning mode
added time to prepare, thing that goes wrong at Zoma- and you can never get to a point
to is your fault because at some where you believe you actually

Users Prefer Buying on Amazon

as the competitions point in time, you could have know it all. The moment you be-
deadline has been ex- done something to not let that gin to feel so, that is where it
tended to March 31, happen. ends.
2018, reports Our Bu- This piece of advice came (As told to Supraja Sriniva-
back full circle espe- san)
reau. TeamIndus is According to Forrester, Prime service and strong logistics support kept firm ahead of Flipkart cially in the
among the five teams
ber of categories they purchase, said Satish
competing for the
XPRIZE, a global com-
GETTING AHEAD Mugdha.Variyar Meena, senior forecast analyst at Forrester. The addition of Prime Video and Amazon
petition challenging pri- Prime for customers, who are spending more
vately funded teams to Bengaluru: Amazon India is taking the le- online, has helped Amazon capture customer
land a spacecraft on the ad over rival Flipkart when it comes to custo- preference, he said.
mer preference for online retail shopping, Overall Amazon is increasingly increa-
Moon. While we have mainly because of its Prime service and sing the engagement on the platform allo-
been working hard on strong logistics play. Amazon continued to be wing them to increase the wallet share from
an aggressive timeline, the preferred online destination for Indian existing online buyers and adding more buy-
the change of date al- shoppers, increasing its gap over Flipkart in ers due to superior customer experience, sa-
customer preference, according to a survey id Meena. Amazon India cla-
lows us to continue
by research firm Forrester Research. ims it has seen 25% year-on-
work with that fervour The survey, done among 2,000 Indian consu- year growth in purchase fre-
to make sure that the mers done between February and March this quency, driven by growth in
mission makes history, year, showed 80% shopped with Amazon, consumables and fast fashion Sanjeev Bikhchandani,
said Rahul Narayan, while nearly 65% of these shoppers shopped categories. Founder, Info Edge
Addition of
on Flipkart. The share of the platforms
founder, TeamIndus. According to Forrester, Amazon India had Prime Video
new customers in non-met-
TeamIndus has already and Amazon

Social Site Roposo

surpassed Flipkart in customer preference ros moved past 75% in 2017.
Prime has
won a $1-million mile- for the first time last year. Flipkart and Ja- New customer acquisition
stone prize. bong saw a slight decline in customers opting grew by 60% Y-o-Y in 2016, the
PABLO PICASSO, Two women running on the beach

for their platforms. While there are no abso- company said. Flipkart did

Reboots as a TV
lute numbers, the survey done with 2,000 met- not respond to queries.
Quick Byte ANIRBAN BORA ropolitan shoppers found that the number of Online customers are loo-
customers who shopped at Flipkart dipped king beyond just discounts
from close to 70% last year to 65%, while those and are now also considering good experien-

FLIPKART 70% 65%


2017 `24,092
who shopped on Jabong fell from over 30%
last year to 25% this year. Customers who
shopped on Amazon grew from 75% to 80%.
Shipping cost, shipping time, product revi-
ce and fast delivery. Product ratings have also
become important, said an ecommerce lo-
gistics player who did not wish to be identifi-
ed. Overall, customers online retail spen-
by the People
JABONG 30% 25% ew-ratings, low price guarantee and retailers ding picked up again in 2017 after seeing a dip Co relaunches as a digital television platform
return policy are the key factors for custo- last year, as per the report. Online spending and interests and target specific au-
2016 `24,092 Taslima.Khan
mers while picking an online retailer. Over a grew by 11% in the first half of 2017, with the dience accordingly. Brands who
AMAZON 75% 80% period of time, Amazon rated high in almost online spending per buyer growing to . 26,671 want to target these users can post
2015 `29,000 all the factors allowing customers to order in terms of mean spending in 2017, from their advertisements within these
Last year This Year
more products and also increasing the num- . 24,092 in 2016. New Delhi: Tiger Global-backed channels.
Roposo, which runs an eponymous Some of the channels, which are
fashion discovery and social net- part of the digital television plat-

Flipkart Sees the Big Picture in TV

working application, is relaun- form, include Rangoli, a channel
ching as a digital television plat- for home makers, Gabru for young
form called TV by the People. men, and entertainment guide
Apart from posting stories in an Glitz.
attractive manner, the app will al- Over the past six months, the com-
Ecomm retailer looks to drive growth in sector by focusing on partnership with Vu Televisions low users to view their preferred
content from an array of themes,
pany had been focussing on home-
based sellers who could promote

86.4 b
category. This would mean that Vu sions contributing significantly to equity stake buy, said Karwa. follow the biggest influencers and themselves on the platform thro-
Supraja.Srinivasan Televisions would form 8% of the en- the success of television sales for However, analysts believe emula- icons as well as interact with sellers ugh a paid subscription-based pro-
$ tire market share by March 2018, ta-
king the brand to the number 3 or 4
Flipkart, the ecommerce firm is not
shying away from exploring an equi-
ting the success of mobile phone sa-
les for its TV category will be extre-
of a plethora of products. We see it
as an expansion and natural evolu-
gramme. The network has about
12,000 home-based sellers.
Projected spending on Mumbai: With SoftBanks $2.5-bil- spot in the market, according to the ty buy in the television maker, howe- mely tough for Flipkart. Consu- tion for us, said Mayank Bhanga-
IT security products and lion mega investment in its kitty, Flip- company. ver, clarifying that nothing is on the mers preference even today, is to dia, CEO of Roposo, which has been
kart is charging ahead to invest and Vu Televisions has benefitted im- cards in the immediate future. We buy slightly larger and expensive diversifying its revenue streams.
services, says Gartner
grow some of its high margin catego- mensely from Flipkarts focus to dri- will explore all the options to ensure television sets through an offline Our users have helped shape the Right Click
ries as it locks horns with Seattle-ba- ve growth in the large appliances ca- this (partnership continues). If that channel. The price difference bet- product. When we opened up the THE APP WILL ALLOW USERS TO
sed Amazon to win the ecommerce tegory this year a move that saw the points out to a (requirement of a) ween offline stores and online platform for videos and photos, it 3RVWstories
Google Buys battle in India. Right on top of that list
is its television category. Flipkart is
brand clock 200% growth in the
first two months of FY18 with re-
long-term solution and for that if
we need to make certain invest-
channels like Flipkart is not signi-
ficant, believes Harminder Sahni,
was largely a fashion content net-
work. But people did not stop at that 9LHZ preferred content
Indian-origin looking to grow its market share in
the television category by over three
venues touching . 80 crore during
Flipkarts Big 10 sale in
ments which needs an equity
proposition to come in, then
founder of retail consultancy firm
Wazir Advisors.
and started posting on everything
that is important to them.
)ROORZ influencers and icons
,QWHUDFW with sellers
Profs Startup times to 20% by March 201 8. For the
television category, we currently own
May. We have
grown 150% in
it is something
we will explore
Secondly, the time taken for delive-
ry and installation is a real pain point.
Roposo, which has a user base of 4
million, maintains that 70-75% con- 20 Total app Channels
6-7% of the overall market including the first half of at that point of It is a difficult category from a consu- tent on the platform is still related
online and offline (channels). In the 2017 with Flip- time. Today, I mer behaviour point of view as also to fashion, lifestyle and beauty. The
company counts the digital televi- User base Total funding
upcoming festive period, we want to kart. We closed dont think we with post-purchase pain points thro-
hit high double-digit growth, Sande- FY17 with reve- are at a stage ugh an online channel. Hence sion platform as one of of Roposo received by co
ep Karwa, the head of large applian- nues of about where we are (growth to 20%) seems like a very am- its monetisation strategies.
ces at Flipkart, told ET. By March . 480-500 crore looking at an bitious target, Sahni said. TV by the People is another big
2018, we want to claim 20% of the ove- of which 70% stream of monetisation for us since
rall market share, Karwa added. came from DEVITA SARAF the app will have about 20 channels
A lions share of this growth will co- Flipkart, said CEO, Vu Technologies catering to different types of con-
Google has acquired me from the sales of Vu Televisions, Devita Saraf, tent shared by users, said Bhanga-
Senosis Health, a Seat-
an exclusive partner for the ecom-
merce firm, forming 35-40% of the lat-
CEO of Vu
We closed FY17 with . 500-cr reve- dia, who is now building a technolo-
gy platform for brands to filter
tle-based health moni- ters revenue share in the television With Vu Televi- nues of which 70% came from Flipkart users based on their taste graphs
toring startup founded
by University of Wash-
ington professor Shwe-
tak Patel (in pic). The
startup turns smart-
phones into medical
AI is Creating Building Blocks to Reshape Music and Art
devices and collects the idea to Douglas Hofstadter, the of smartphones, apps and internet come of age. Called deep neural photos, for instance, a neural net- game as much a way of under-
Cade Metz cognitive scientist who wrote the services, Google is in the business of networks, these complex mathemat- work can learn to recognise a bike. mining art as creating it is not
health stats. Using ac- Pulitzer Prize-winning book on communication, and Eck sees Ma- ical systems allow machines to learn This is how Facebook identifies faces what he is after. There are so many
celerometer, micro- Mountain View: In the mid-1990s, minds and machines, Gdel, Escher, genta as a natural extension of this specific behaviour by analysing vast in online photos, how Android other paths to explore beyond mere
phone, flash and Douglas Eck worked as a database Bach: An Eternal Golden Braid. work. amounts of data. By looking for phones recognise commands spoken mimicry. The ultimate idea is not to
camera, the Senosis programmer in Albuquerque while Hofstadter turned him down, ada- Its about creating common patterns in into phones, and how Microsoft replace artists but to give them tools
moonlighting as a musician. After a mant that even the latest artificial new ways for people to millions of Skype translates one language into that allow them to create in entirely
apps can monitor lung
day spent writing computer code intelligence techniques were much communicate, he said bicycle another. But these complex systems new ways.
health and haemoglo- inside a lab run by the US Depart- too primitive. But over the next two during a recent in- can also create art. By analyzing a set In the 1990s, at that juke joint in New
bin counts, among oth- ment of Energy, he would take the decades, working on the fringe of terview inside the of songs, for instance, they can learn Mexico, Eck combined Johnny
er things. IANS stage at a local juke joint, playing academia, Eck kept chasing the idea, small two-storey to build similar sounds. Rotten and Johnny Cash. Now, he is
what he calls punk-influenced and eventually, the AI caught up with building here that As Eck says, these building software that does much the
bluegrass Johnny Rotten cross- his ambition. serves as head- systems are at least same thing. Using neural networks,
Jargon Buster ed with Johnny Cash. But what he Last spring, a few years after taking quarters for Google approaching the he and his team are crossbreeding
really wanted to do was combine his a research job at Google, Eck pitched AI research. point still many, sounds from very different instru-
Palm days and nights, and build machines
that could make their own songs.
the same idea he pitched Hofstadter
all those years ago. The result is
The project is
part of a growing
many years away
when a machine can
ments say, a bassoon and a clav-
ichord creating instruments
A US Company that spe- My only goal in life was to mix AI Project Magenta, a team of Google effort to generate instantly build a new capable of producing sounds no one
and music, Eck said. researchers who are teaching ma- art through a set Beatles song or perhaps tril- has ever heard.
cialised in the design
It was a nave ambition. Enrolling chines to create not only their own of AI tech- lions of new Beatles songs, each Another work using DeepDream,
and manufacture of per- as a graduate student at Indiana music but also to make so many niques that sounding a lot like the music the relies on neural networks to generate
sonal digital assistants University, in Bloomington, not far other forms of art, including sketch- have only Beatles themselves recorded, but imagescapes from existing photog-
from where he grew up, he pitched es, videos and jokes. With its empire recently also a little different. But that end raphy. NYTNS

Disruption: Startups & Tech  7
Infy Board to Consider
Tata Trusts Plans $30-m Fund Buyback on August 19
to Help Social Sector Startups
Company to reach out to organisations and individuals across the world to contribute to the fund

Bengaluru: Infosys board will consider a pro-

posal to buy back shares at a meeting on August
TCS has completed its .16,000-cr
buyback it announced in Feb.
19, the company said in a late filing to the stock
livelihoods for waste pickers, Habba exchanges. The company had said it would pay Cross-town rival Wipro has LETS GET THIS SHOW ON THE ROAD a social ecommerce platform desig- shareholders up to $2 billion through dividends
announced its second buyback
ned to maximise financial returns and share buybacks in FY18 in April, but inves-
New Delhi: Tata Trusts, the phi- for low-income artisans and weavers tors had been getting testy as no buyback had
lanthropic arm of the Tata Group, is $40 million across India, and Meghshala, which materialised in the following months. in as many years
looking to raise funds to invest in so- Amount Tata has created a community of teachers The company had said it needed to get approv- Infosys added that it was closing its trading
cial sector startups in the next few Trusts invests along with Rang De and Sabziwala als from multiple exchanges and regulators be- window with immediate effect and that the win-
months. A top executive of the agen- annually in R&D among others. fore going through with the buyback, which dow would reopen on August 22. The company is
cy told ET that after incubating and The social sector problems are on- was causing the delay. yet to reveal the details of its buyback even as ri-
investing in 15 startups at the seed le- 30 Educational ly being solved by the NGOs. If you The board of directors will consider a propos- val Tata Consultancy Services completed the
vel in the past one year of its existen- want to build a scalable model, you al for buyback of equity shares of the company 16,000-crore buyback it announced in February.
institutions Tata
ce, the company is now looking to rai- have to build it around the entrepre- at its meeting to be held on August 19, 2017, Info- Cross-town rival Wipro has announced its sec-

KEN DANBY, Towards the Hill

se $30 million to invest in social sec- Trusts has part- neurial model, said Kumar, who is sys said in a statement. ond buyback in as many years.
tor startups. nered with also the CEO of Social Alpha.
We have been incubating and acce- Tata Trusts, which invests around
lerating startups through the Foun- `55 crore $40 million a year in R&D, has partne-
dation for Innovation and Social Ent- Allocation for FISE red with over 30 educational institu-
repreneurship (FISE), working in over next 3 years tions, which includes the likes of MIT
the social sector in areas such as he- and IIT that have joint research faci-
from Tata Trusts
althcare, sanitation, water and agri- lities with the Tata Group.
culture for over a year, but now, the- FISE, on the other hand, has an allo-
res a need to scale them up, said Ma- to the fund, said Kumar. The organi- Trusts. The workable solutions are cation of about `. 55 crore over the
noj Kumar, head innovations, Tata sation has already got the approval then provided seed capital through next three years from Tata Trusts,
Trusts. Tata Trusts being a phi- from the Securities & Exchange Bo- FISE and are tested in the market for out of which it has already spent `. 10
lanthropic organisation can only ard of India (Sebi) for a Category-I Al- affordability and accessibility thro- crore in the first year of its existence.
provide grants to various entities ternative Investment Fund (AIF). ugh its huge network of NGOs. With A part of it has gone into investing in
and therefore, theres a need to raise He said the organisation, through the fund, it wants to complete the cha- 15 startups with an average ticket si-
funds from other sources . its Social Alpha model, is trying to in by providing scale to the startups. ze of `. 50 lakh. We hope to be able to
We are planning to reach out to phi- provide an end-to-end solution by So far, it has provided seed capital in invest in 15-20 companies in the next
lanthropic organisations and indivi- providing deep domain research and companies such as Harisaru Dala, two years, and raise a larger fund
duals across the world to contribute innovation facility through Tata which works for creating sustainable next year, Kumar said.

Pinterest Adds
Zoom to Your Infosys Finacle Banks on Unique
Gallery Pins
Solutions to Grow in Fintech Space
opportunity for us, Rajashekara V not need to reinvent everything we do.
Jochelle.Mendonca Maiya, associate VP - Finacle Product Earlier this year, we launched Finacle
THINKSTOCK Strategy, told ET. Fintech Connect. We had about 6,000

US banks are as yet an untapped entries, out of which we shortlisted
Bengaluru: Infosys sees the chang- market for Indian core-banking sy- 25. We took that down to about five and
es and challenges in the banking sec- stems and there have only we are offering these solutions to our
NEW YORK: A long-awaited
tor as an opportunity for its Finacle been sporadic deals in customers, Maiya said.
feature is finally coming to Pinter- core-banking platform and the unit the sector. He added Fintech startups Active.AI and To-
est: Starting Wednesday, Pinterest has tied-up with startups to provide that Infosys was loo- neTag are some of the companies that
users will be able to zoom in on a combined offering to its custo- king to give its clients have tied up with Finacle. When
pins. Up until now, Pinterest mers, a senior executive told ET. access to innovative Blockchain started, banks created
images were static you could Banks globally are struggling with technologies through their own internal centres-of-excel-
slender margins and huge complian- tie-ups with startups. lence and proof-of-concepts because
click to enlarge them, but there
ce costs as regulations continue At Infosys, we belie- there was no talent available anywhe-
was no way to actually zoom in on to be tightened in the af- ve that we do re. Now, they are beginning to engage
those images within the app. Now, termath of the financial with outside providers, Maiya said.
zooming will work on both images crisis.Banks are
and GIFs, and will work by pinch- struggling. Regula-
ing an image with your thumb and tions were considered
index finger. Pinterest said the
loose, now they are When Blockchain started, banks created
tight and we believe
new feature is among the top that globally, regula- their own internal centres-of-excellence
requested by Pinterest users. It is tors will look at how
to make them
and proof-of-concepts...
also revamping visual search both
in the app and on the web. BI right. All these RAJASHEKARA V MAIYA,
challenges are an Associate VP - Finacle Product Strategy

8  Brands: Creating Desire THE ECONOMIC TIMES | BENGALURU | THURSDAY | 17 AUGUST 2017

Short Takes USL Fined `250 cr for Violating Price Pact Desi Vendors
See Hope as
We are in the process of now coming to
 Rajesh Rathi Named
Videocons Business Head
Co supplied products at Heavy Price to Pay
a settlement with this customer wherein
we want to ensure that we agreeing to an
Shipments of
NEW DELHI: Consumer electronics firm Video- inflated prices, breaching USL is now controlled by Diageo
understanding that we settle all of his
past claims and moving to doing a future Phones Rise
con has appointed Rajesh Rathi as business fair pricing agreement, Co sells brands like
business with the party in a manner that
profit ambition, USL CFO Sanjeev Chu-
head. Rathi, who has been associated with
Johnnie Walker, Royal
Videocon for over eight years, was earlier alleges CSD Challenge, McDowells
riwala said in an investors call in May.
USL, now controlled by Diageo, also said
national head and responsible for the groups
Its Q4 earnings statement included items `46 crores had been netted off against net
consumer durable sales across India, the Ratna Bhushan & Sagar Malviya sales value during last fiscal and about
of `264.5cr regarding a customers
company said in a statement on Wednesday. `265 crore pertains to 2015-16, which have
claim in pricing inconsistency
Videocon Industries chairman Venugopal N New Delhi | Mumbai: United Spirits has now been clubbed as `311 crores.
Dhoot said: His expertise in planning, market been slapped with fines of over `250 crore by Given army canteen While this amount has already been
strategy, analyses and product management Canteen Stores Department (CSD) after the tax exemptions, a provided in the balance-sheet, once the
countrys largest alcoholic beverages maker bottle of spirit is payment is made, it will affect cash flow,
will be invaluable to the company, going
violated the pricing agreement. USL, which nearly 80% cheaper said Abneesh Roy, senior VP at Edelweiss
forward. Rathi has also been heading the sells brands such as Johnnie Walker, Royal Securities.
companys other business verticals, including Challenge and McDowells, had supplied After Diageo acquired controlling stake
Liquor accounts for 26% of
strategic planning, product management, products to CSD at inflated prices, brea- CSDs annual sales in USL, the company have been faced with
business alliances, distribution management. ching the agreement of fair pricing which a series of violations and issues, mostly
also includes matching offers and promo- done during the regime of erstwhile ow-
Our Bureau
 Apollo Aims to Double tion given to other retailers. urce of income for state governments. CSD or army canteen, the largest custo- ner Vijay Mallya.
USL, in its earnings statement for the This makes a bottle of spirit nearly 80% mer for most consumer goods companies, The Indian unit of Diageo filed multiple
Two-wheeler Tyre Sales Jan-March quarter 2017, included an ex- cheaper at army canteen since they have tax accounts for nearly 6-7% of USL volume complaints against Mallya after inquiri- New Delhi: Smartphone ship-
ceptional item of `264.5 crore and said it is exemptions. Companies have a written ag- sales. Liquor accounts for 26% of CSDs es uncovered improper transactions ments by Indian vendors grew
NEW DELHI: Apollo Tyres is looking to nearly sequentially for the first time
regarding a customers claim in respect of reement with CSD that their prices have to annual sales, and is its singe largest contri- worth `1,225.3 crore. USL said Mallya had
double the sales volume of its two-wheeler inconsistency in the price charged to the in four quarters, boosting the
be the lowest among all trade channels. But butor. While the army canteen channel diverted the funds to nearly half a dozen
tyres to around two lakh units a month this customer. It also said the disclosure was USL inflated its original pricing for CSD, and consumer goods or alcoholic beverage companies in which he had a direct or in- prospects of domestic compa-
fiscal, according to company chief financial done voluntarily by USL to the customer and then reduced it on the pretext of disco- companies have been involved in similar direct interest, mostly located in tax ha- nies as they prepare to take on
officer Gaurav Kumar. The firm, which had and the issue has arisen out of the legacy unts which were also offered to other retail disputes in the past, this is the single lar- vens. Chinese rivals in the crucial se-
commercial terms. channels, two officials directly aware of gest fine levied even on a single company. For Diageo, India accounts for almost cond half of the financial year.
forayed into two-wheeler tyres in March last
The alcoholic beverages industry in India the development said. So technically, pro- CSD declined to comment while an email 40% of sales volume and 9% of net sales. Indian smartphone compani-
year, will not attempt to gain with price under es registered an 18% sequential
is heavily regulated, with excise and other ducts at CSD were priced higher than other query sent to USLs spokesperson didnt India is the largest whisky market in the
cutting and expects profitability of the seg- growth in sales in the three
taxes on Indian made foreign liquor a key so- retail outlets before tax. respond to specific questions. world, selling almost 200 million cases.
ment to continue to remain decent. months ended June after decli-
nes in each of the three prece-
ding quarters, International
Data Corp (IDC) said.
GST REMOVES CHECKPOST The share of domestic smartp-
hone vendors was at 15% com-

Freight Carriers Asked to pared with 54% for Chinese ri-

vals, according to IDCs Quar-
terly Mobile Phone Tracker re-
port. In all, 28 million
smartphones were shipped in

Cut Cargo-handling Cost

the quarter, a growth of 3.7% on
quarter and 1.6% on year.
Indian vendors have shown
an early sign of recovery and
now, when most of them are re-
ady with their 4G product port-
Cos expect a 10-20% cost reduction in the long run; cant guage savings to share benefit yet folio, a new set
of China-ba-
ON REDUCING TARIFFS In all, sed competi-
Anirban.Chowdhury Sharing Benets Executives at two prominent 28 million
tors have ente-
red in the sub-
were shipped
Mumbai: Calls are getting louder for fre-
Govt claims
logistics costs
Expense cuts
due to abolition of
fashion lines and a pharma- $150 segment,
in the quarter, said Upasana
ight carriers to immediately lower cargo-
handling rates after the GST overnight re-
will drop as
much as 20%
octroi check posts
leads to smoother
equipment maker told ET that a growth of
3.7% on
Joshi, a senior
analyst at IDC
moved interstate check posts and octroi ga-
tes, speeding up goods movement across In- post GST transport they have requested their LSPs quarter and
1.6% on year
India. Second
half of the ye-
dia. Any tangible reduction in costs may, ho-
wever, take longer to materialise. Companies have asked Logistics companies to reduce tariffs ar will be cru-
cial either it will see a revi-
Executives at two prominent fashion lines logistics parts to cut say too early to val of Indian vendors or emer-
and a pharma-equipment maker told ET charges accordingly gauge cost benefits for all as credit pools are yet to build up, sa-
gence of new dominance in the
that they have requested their logistics ser- id Amit Dawar, senior director, Value Added
sub-$150 segment from China-
vice providers (LSPs) to reduce tariffs. Services, South Asia, at DHL Global For-
GST replaces at least seven based vendors.
Senior executives at four top logistics pro- warding.
indirect tax heads including Samsung Electronics ship-
viders in India and a transportation compa- Most businesses have been struggling to
countervailing duty, special ments fell 4% on-year but the
ny confirmed that clients have requested get their invoicing out correctly, said Da-
additional duty of customs, South Korean company kept
price cuts. war, whose company is part of Deut-
excise duty, service tax, central its top position, while Chinas
Yes, customers have been asking us for a sche Post DHL, the worlds largest co-
sales tax, value added tax, Xiaomi, which saw a 25% on-
cut, said Anshuman Singh, chairman of urier company.
octroi, state cesses quarter growth, came in at
the Warburg Pincus-backed Stellar Value An executive at a fashion brand sa-
No. 2. Xiaomis Redmi Note 4
Chain Solutions. id the turnaround time for consign-
became the most-shipped
Union minister Nitin Gadkari recently ments sent by his company has redu-
smartphone in any quarter in
spoke about a 10%-20% reduction in lo- ced by 25%. But logistics companies ha-
the history of Indian smartp-
gistics costs due to GST in the long run. vent given in yet.
hones, with over 2 million
Customers have taken a note of that and With the introduction of GST,
sold, IDC said in its report.
have immediately asked the LSPs to transportation has benefited from le-
Vivo remained in third spot
pass on the benefits. The GST replaces ad-time reduction and cost improve-
with a 26% sequential growth
at least seven indirect tax heads inclu- ment. However, there is a reduction in
and a 13% market share, wide-
ding countervailing duty, special addi- utilization of vehicles as wellWe estima-
ning from 4% a year earlier,
tional duty of customs, excise duty, ser- te that over the next 4 to 6
while OPPO was fourth even
vice tax, central sales tax, value-added months, true effects of GST
after its shipments declined
tax, octroi and state cesses. Interstate can be best evaluated befo-
13% on quarter. Lenovo (in-
movement of goods is now easier, with re rates get normalized,
cluding Motorola) fell to fifth
the check posts demolished. said V Balaji, CEO, contract
position, hurt by a 25% on-qu-
Stellar Value Chains Singh said that the- logistics at Avvashya CCI
arter slump in shipments.
re will likely be a 10%-20% cost reduction in Logistics.
IDC said 34 million feature
the long run, but it was too early to gauge Others believe that input costs stand in
phones were shipped in the qu-
the extent of the savings and pass the bene- the way of reducing freight rates.
arter, an 8.9% growth from the
fits on to consumers. There is no question of cutting our char-
previous quarter.
Others concurred. Road efficiencies sho- ges. There has been an increase in diesel pri-
The segment may get a boost
uld come through finally, but businesses ces Also road infrastructure hasnt im-
with the launch of a 4G feature
will need to evaluate how much and when. proved to the extent that there will be a con-
phone by Reliance Jio Info-
For now, businesses in India are grappling siderable decline in costs, said Chander
comm, likely in the first week
with the first return filing, which is due Au- Aggarwal, executive director at Transport
of September.
gust 20 and this could see a big cash flow out Corporation of India.

Online Platforms Fast Losing

Pricing Edge in Electronics
Big brands in tie-ups with ecomm marketplaces to control pricing and discounts

Kolkata: Online platforms selling

high-value electronic gadgets of top
brands such as LG, Samsung, Sony or
Motorola could be losing their pricing
edge over brick-and-mortar chains,
with narrowing differences in consu-
mer benefits across the two sales chan-
nels helping move the fulcrum back to
LG, Samsung, and Sony have entered
into business relationships with
e-commerce marketplaces to control
pricing and discounts for their
smartphones, televisions and home they need to bridge the price difference
appliances. ONLINE PRICING and launch models at same time on both
Similarly, online-focused brands such channels, a leading cellphone retailer
as Xiaomi and Lenovo-Motorola have Over the past few said. Xiaomis recent two models
informed their trade partners that they, Redmi Note 4 and Mi Max2 were
too, would soon implement a similar months, the crazy online launched at the same time for both sales
pricing strategy, senior industry ex- channels.
ecutives told ET. discounts are declining and Emails sent to Xiaomi and Lenovo-
A top executive with a leading South
Korean consumer electronics company
we dont expect similar pri- Motorola did not elicit any response
until the publication of this report.
said that while marquee brands entered
into direct relationships with all online
cing to stay across channels Apart from the bigger opportunity
that lies in the offline channel physi-
marketplaces to ensure market opera-
ting price is maintained, some of them
due to direct business terms cal stores account for 92% of overall
television and appliance sales and 70%
like Flipkart would still want one or two SATISH PADMANABHAN of smartphone sales the brands are
models they can price aggressively Sony India Head (Sales) ensuring similar pricing so that preda-
during discount sales. tory online discounts do not kill the
We may allow some discounting only crazy online discounts are declining offline business the way they did
for the online exclusive models - just a and we dont expect similar pricing to earlier. As a result, ecommerce firms
couple of them. Hence, consumers can stay across channels due to direct are now betting more on online ex-
now expect price parity across most of business terms, he said. clusive brands such as TCL, BPL,
the models, including the popular Industry executives said Xiaomi and Sanyo and OnePlus, and running
ones, he said. Lenovo-Motorola are going to bridge heavy promotion and discount on
Sony India head (sales) Satish Pad- the 400-1,000 price gap of their smartp- them to notch up sales.
manabhan said the company has come hones sold via the online and offline However, online discounting during
up with direct policies to ensure fair- modes. sales is continuing only in the case of
ness of prices across channels. Online These brands have realized that if Apple iPhones since the company is not
discounting is not a big challenge any they have to grow, they need to focus on ready to control prices, said one senior
more. Over the past few months, the brick-and-mortar retail. And for that, industry executive.

HSBC will Leap-
frog in India on
Back of Aadhaar
Q&A with HSBCs
Kevin Martin
Beating Volatility WWW.ETMARKETS.COM

Market Trends F&O DATA INDICATE OPTIMISM, but low market breadth is a cause for concern; EYEING INORGANIC GROWTH ROUTE
Bank Nifty 24,000-24,300 calls expiring Thursday witness huge short covering
Fairfax Seeks
Break of 9,944 Resistance

a Bite of India
Nifty 50 9897.3 1.05
Sensex 31770.89 1.02

MSCI India 826.19 0.73

MSCI EM 2290.85 0.68
E-Comm Pie with
MSCI World
SX 40
Hang Seng
Could Take Nifty Past 10k From there it has recouped 212 concern as many stocks are not
Infibeam Stake points to close at 9,897.3 on participating in the rally.
Strait Times 3278.95 0.48 Wednesday after the tensions ETIG data show advance-decline On the Rise Listed in April 2016, market cap rose
by 229% to `7,793 crore
Values in US $, Gross At 7 pm IST Mumbai: Having clawed back showed signs of easing. ratio which was 0.97 in July when 1700
nearly half of the 452-point fall Derivatives data for now seem to the Sensex rose by 5% has declined Infibeam 1438.1 In 2017: Acquired payment gateway
OIL ($) BOND from record highs, the Nifty is now favour upside rather than a correc- to 0.6 this month, which has seen Incorporation
service provider CC Avenue for
DUBAI CRUDE set to test the crucial resistance of tive move. For the August series, the Sensex fall by 3.28%. 1450 Share Price `20 billion. Invested in RemitGuru,
10-YR YIELD on BSE (`)
49.75 6.53
9,944. That level was the low of July the broad range of the market cur- Thursday will also be an impor- international online money remit-
0.3 0.01 28, from where the market rently is 9,480-10,050, F&O data in- tant day to gauge market direction tance service as an anchor investor
Absolute Change Figures in % marched to its life-high two ses- dicate. as it is the weekly Bank Nifty op- 1200
sions later. A conclusive break Sellers of Nifty calls across 9,700- tion expiry. If the Bank Nifty opens As of quarter ended June
GOLD RATE above 9,944 could drive the market 10,500 covered short positions on positive but closes below 24,500 802.1 30, 2017, it had 76,829
Prices per Troy Ounce ($) slightly above the 10,000 mark, say Wednesday and added to the posi- that could indicate the correction 950 registered merchants
US India derivatives and technical analysts. tive momentum which saw the of last week could re-commence. `4,502 cr transactions, 15 mn
OPEN 1276.90 1403.44
Unless we break past around Nifty almost reclaim 9,900. The spot Bank Nifty which was
plus SKUs and around `184 cr
9,950, chances are wed linger be- Additionally, selling of Nifty puts trading at sub-24,000 level intraday

LAST* 1275.60 1397.68 AUG 16, 2016 AUG 16, 2017 of revenues with 20% Ebitda margins
low 10k and break below 9,700 from 10,000 through 9,600 strikes Wednesday, made a smart recovery
*At 10.30pm, After adjusting for import duty, In- thereafter, said Amit Gupta, de- was witnessed. to close 1.3% higher at 24,438.
dian spot gold lower by $ 5.48 to US Comex gold rivatives head of ICICI Securities. An extra positive indicator for Banks rose on news that lenders bank CLSA Singapore has been ad-
price on Wednesday. The premium on local gold A breach above 9,950 could drive the market was that more 9,800 who take over shares of defaulting vising Infibeam, sources said.
is due to tight supply following import curbs.
the Nifty to the next resistance of puts were sold on the ground of companies would not be subject to Prem Watsa-led Either the company will look to
10,050 odd and then on to 10,100. sellers not expecting the market to fund manager (PMS), Sharekhan- Sebi rules that trigger an open of- acquire a company or will help a
FOREX RATE (`-$ Exchange Rate)
After hitting a high of 10,137.85 on fall significantly below that level BNP Paribas, cites the low market fer. Bank Nifty options expiring Canadian firm may global player with its India entry. In
OPEN LAST* August 2, the market fell to a low of minus the premium received from breadth in recent weeks to support Thursday witnessed substantial both cases it needs capital, said a
64.28 64.15 9,685.55 last Friday as traders buyers. his claim of the market looking short covering of call options from invest up to `1500 cr person involved in the discussions.
booked profit amid rising tensions However, not all market players jittery near 10,000 levels. The 24,000-24,300 strikes, which also The proposed investment is ex-
Market on Twitter@ETMarkets between the US and North Korea. are so hopeful. Rohit Srivastava, advance-decline ratio causes some catapulted the Nifty higher. for a 12% stake pected to be at a marginal premium
at about `1,500 per share to the cur-
rent market price of `1,438. The

Earnings Watch INDEX UP 321.86 PTS as stability in global markets gives local investors confidence Sneha Shah & Arun Kumar market capitalisation of Infibeam
stands at `7,805.77 crore.

Sensex Logs its Biggest Gain Since July 10

Mumbai/New Delhi: Prem When contacted, Infibeam spokes-
Results Scheduled Today... Watsas Fairfax Financial Holdings person declined to comment. In a
Sales In `Crore PAT is in advance negotiations with response to SMS, Fairfax spokes-
Infibeam Incorporation Limited, person declined to comment on
Bloomberg June-17 YoY% Nifty jumped 103.15 points, or 1%, Indias only listed and profitable e- market speculations and rumours.
Consensus Est Estimate Change Our Bureau to close at 9,897.30. The equity mar- commerce company, to pick up a Fairfax has pipped other investors
718.81 -7.56 ket was closed on Tuesday for Wednesday on the Street minority 10-12% stake for around such as CDPQ, Fidelity and Canada
Dish TV (I) Mumbai: The stock market extend- Independence Day. `1,200-1,500 crore, said three people Pension Plan Investment Board
-14.19 -134.72 ed its recovery for the second The BSE Midcap and Smallcap SENSEX Gainers SENSEX Losers with direct knowledge of the devel- (CPPIB) who had also shown inter-
straight session on Wednesday after also continued to recover at a fast- Company CMP % Chg Company CMP % Chg opment. The move is aimed at creat- est in picking up a stake, said an-
Somany 404.33 -1.72
last weeks declines as domestic in- er pace than large-caps, gaining Tata Motors 389.05 3.57 NTPC 170.10 -1.05 ing the war chest to fund the expan- other person with knowledge of the
Ceramics 18.33 2.40 stitutions stepped up their purchas- 1.3% each. India VIX which sion plan of the e-retailer through development.
Cipla 590.20 3.54 Asian Paints 1,142.40 -1.01
es, helping absorb the selling by for- measures markets perception of the inorganic route. With its global reach and deep
eign investors. The benchmark volatility in the near term fell ITC 279.30 3.01 Power Grid 220.65 -0.81 Founded by former Amazon em- pockets, the evergreen fund
Aggregate Results So Far
indices rose 1% on Wednesday for the third consecutive session, HUL 1,186.95 3.00 Coal India 237.05 -0.67 ployee Vishal Mehta a decade ago, (Fairfax) was a preferred partner
Based on 2580 June-17 QoQ YoY their biggest single day gain since ending down 1% at 14.24. Sun Pharma 485.20 2.69 Lupin 962.20 -0.56 Infibeam is the only listed and prof- for the company, the person added.
Cos' Earnings (`Cr) %Chg %Chg July 10 as stability in global mar- Among top gainers, Tata Motors itable ecommerce company in the According to media reports,
kets gave local investors confidence gained 3.6% to `389.05, Cipla was Tata Motors* 231.65 2.25 Bharti Airtel 406.65 -0.47 country. The company offers a plat- Infibeam had shown interest in pur-
Net Sales 1734665 -4.97 7.85
to buy shares that were battered the up 3.5% to `590.20 and ITC ad- Kotak Bank 1,001.55 1.94 ONGC 161.00 -0.46 for m to vendors through its chasing troubled ecommerce com-
Op Prot 283248 -4.19 -3.41 previous week. vanced 3% to `279.30. SBI 282.90 1.74 L&T 1,141.65 -0.43 BuildaBazaar offering. pany Snapdeal.
The Sensex climbed 31,770.89, up *DVR Compiled By: ETIG Database
KPMG has helped with the valua-
Interest 244314 -0.69 1.13 321.86 points, or 1%, while the Continued on XX SMART INVESTING tion for the deal and investment Continued on XX SMART INVESTING
Net Prot 108024 9.16 -7.76
Sebi Asks
Exchanges to
Biocons Pain Could
Start Audit on Continue Post EU Drug
100 Shell Cos Application Withdrawal 35 violations of good manufacturing
Our Bureau practices at the Bengaluru-based drug
makers facilities last month and asked
Mumbai: Sebi has asked BSE and the Mumbai: The launch of Biocons the European agency not to approve
National Stock Exchange to initiate audit highly anticipated breast cancer drug Biocons applications unless the plant
on 100 out of 331 suspected shell compa- in Europe came under a cloud of un- was inspected again and cleared.
nies in which the regulator had restricted certainty after the company with- The request for withdrawal of the
trading recently. The exchanges are also drew its application to the regulator, dossiers and re-submission is part of
considering freezing promoters shares of pending re-inspection of its manufac- the EMA procedural requirement
these shell companies till the time the au- turing facility. linked to this re-inspection, Biocon
dit process is complete, said an exchange Following the announcement, Biocon said. We are on track to complete our
official familiar with the matter. shares tanked 5.9% to `328.80 at the corrective and preventive actions by
Most of the 331 suspected companies are close on the BSE on Wednesday. the end of this quarter and it is
either non-operational or already barred Though the biosimilar oppor- our intent to seek re-inspection
from trading on exchang- tunity might not be lost, we feel and re-submission thereafter.
es. Out of the total 331 that this withdrawal delays the Biocon and Mylan are the only
firms, 162 are listed on launch of these drugs in the US two companies that are close to
BSE. Some of these com- and Europe by at least six launching Trastuzumab, the first
panies such as J Kumar months, said Daljit Singh of bro- biosimilar drug to be introduced
Infraprojects, Prakash kera g e fir m India Nivesh. in the US and Europe.
Industries and Parsvnath Considering the company is seeking Analysts are waiting for September 3,
Developers had moved the Securities an approval for something totally new, when Biocon is expected to hear from
Appellate Tribunal (SAT) challenging the regulators are going to be extra cau- the US Food and Drug Administration
Sebi decision. The SAT had stayed the Sebi tious. ab o u t m a rke t i n g ap p rova l fo r
order. On August 7, Sebi had directed stock The European Medicines Agency Trastuzumab in the US.
exchanges to move 331 companies identi- (EMA) had accepted Biocons applica- Biosimilars are identical copies of
fied by the Ministry of Corporate Affairs tion to market proposed biosimilars of highly complex biologic drugs that are
(MCA) as suspected shell companies to the Trastuzumab, used to treat breast can- said to have the same efficacy as the
Graded Surveillance Measure (GSM) list cer, and Pegfilgrastim, used in cancer original. Biological products are manu-
that resulted in trading getting suspended ch e m ot h e r apy, for review last factured through biotechnology, de-
in many of them. September. rived from natural sources or produced
However, the French regulator found synthetically.

Oppenheimer Cuts Stake in Infy

One of the IT cos biggest investors trims holding by 0.3% in April-June quarter
Infosys shares have declined
Rajesh.Mascarenhas over 3% compared to 19% gain
ITs on Bourses in the Sensex and 1% rise in
the BSE IT index.
235 Infosys BSE IT Sensex
Mumbai: OppenheimerFunds, Though the fund managers
the third-largest institutional (Indexed to 100) may support the management
investor in Infosys, has of any company, but the fund
trimmed its stake in the compa- 145 is duty bound to change its al-
ny. The US-based asset manag- location based on the perfor-
er, which backed Infosys chief mance of the stock or change
executive Vishal Sikka amidst 55 in sectoral weightages and
the managements differences Apr 1, 2010 Aug 16, 2017
various other factors includ-
with the company promoters, ing redemption policies said
cut its holding by 46 lakh Raamdeo Agrawal, joint MD,
shares, or 0.3%, in April-June OppenheimerFunds, in vention by non-executive Motilal Oswal Financial
quarter. The fund held 2.46% as February, wrote an open let- founders in the management Services.
on March 31. ter in support of Vishal team, said Justin Leverenz, During the June quarter, for-
Oppenheimer had increased Sikka, saying the founders portfolio manager at eign portfolio investors have
holdings in the company in needed to accept that the Oppenheimer Developing reduced their stake in the
the previous three quarters IT firm was publicly listed Markets Fund in the letter. company from 38.31% to
March 2017, December 2016 and was no longer their For the past five years, 37.53%, while domestic mutu-
and September 2016 by pur- company. Infosys has underperformed al funds increased their hold-
chasing 1.03 crore shares. As large, long-term inves- both the BSE IT index and the ing to 8.95% from 8.33%.
An email sent to tors in Infosys, we want to ex- Sensex. While Infosys has Foreign funds, which have re-
OppenheimerFunds on the press our support for the surged 69% in the past five duced their stakes in the June
reasons for selling the shares management team of Vishal years, BSE IT and Sensex have quarter include Abu Dhabi
went unanswered till the time Sikka. There have been loud, returned 85% and 80%, re- Investment Authority and
of going to press. cancerous rumours of inter- spectively. Since January, Government of Singapore.


WORST OVER? Miners numbers were weak during the past two quarters, but a pick-
What up in volumes and an end to wage cost provisions hint at a near-term turnaround
Day Trading Guide IIFL

its essential for Nifty to sustain above

Coal India Attractive Post

this level to sustain the recent momentum.
to Buy, Sell Appearance of large bullish candle with
decent lower shadow implies immediate
and Hold support of 9,770 and provided Nifty stay
higher above it, the near term outlook would
Sun TV Network be positive.
1050 Price on BSE (`)



Slide, on Revival Signals
Goods and Services Tax (GST) on coal
also gives room for more price hikes.
Tech Picks
Breakout is seen from base building pattern with
Head -Technical Research

support around its three-digit gann number.
Aug 16, 2016 Aug 16, 2017 ET Intelligence Group: Coal Indias
Numbers Below Par On the cost side, the company has
been making incremental wage cost LAST CLOSE X ` 420 STOP LOSS X ` 407
` 450
share price has fallen by 22% since June Quarter Financials Production and Sales Trend (in million tonnes) provisions which will cease from July
Centrum Broking has a buy on 200 Production Sales
the beginning of this year, following In YoY according to analysts. The share of e-
Sun TV Network with a target
price of `840. The broker-
the companys weak financial perfor-
mance in the past two quarters, but
` cr chg 150 auctions is rising as the demand from
non-power sectors such as cement has
Net Sales 19,161 4% 100
It is attempting to stage a breakout from the
age expects the company to investors may find its current valua- remained strong on the back of rising TARGET
consolidation zone at the top of its rally.
3,522 -17%
post double digit advertising tion attractive considering a possible EBIDTA 50 international coal prices. `1,380
growth on increasing yields turnaround in the business in the PAT 2,351 -23%
Margins in the e-auction coal at LAST CLOSE X `1,313 STOP LOSS X `1,290
due to market share gains. It forthcoming quarters. Margin/tn (`) 256 -20% `1,600 per tonne are 25% higher than
Jun 16 Sep 16 Dec 16 Mar 17 Jun 17
The companys June quarter reve- raw coal. Share of e-auction in sales
said low movie amortisation GRUH FINANCE
cost coupled with a turnaround
nue increased by 4% year-on-year to
`19,161 crore driven by 3% volume
increased to 20% in the June 2017
quarter compared with 18% in the
in IPL in FY19 would result Correction brought the stock around the sup-
growth and higher e-auction prices of Even as the top line growth was mut- The worst, however, seems to be over year-ago quarter. port of its 50-DMA, bringing an end to decline. TARGET
in higher margins and profit- coal. Growth, however, measured by ed, Coal Indias bottom line was hit by for the company, as volumes have Valuations, too, are comfortable. At
ability. The stock fell 0.33% to these parameters was below expecta- higher costs a 7% increase in cost per gradually started picking up, record- Wednesdays closing price of `237.1, LAST CLOSE X ` 473 STOP LOSS X ` 462
` 505
`747.80 on Wednesday. tions. Realisations for raw coal sup- tonne of coal, which was driven by a 6% ing 7% growth in July. the companys enterprise value (EV)
plied as a part of fuel supply agree- increase in wages, the biggest cost for In addition, lower volumes during was 5.9 times expected FY19 Ebitda
ICICI Securities has a hold JUBILANT FOOD
on JSW Energy with a target
ment fell by 3% year-on-year despite
5% price hike taken in the quarter,
the company. The operating profit be-
fore depreciation (Ebitda) dropped by
comparable months the previous year
would result in better growth momen-
compared with the average of 7.5
times since its listing in October 2010.
price of `65. The brokerage It staged a breakout from one-month consolida-
which shows there were no takers for 17.5%. Net profit declined by 23% to tum in the coming months. For in- In addition, given the dividend yield TARGET
said while operational per- higher grade coal due to underlying `2,351 crore the fifth consecutive stance, in the September 2016 quarter, tion at the top, suggesting resumption of uptrend.
of 6%, there would be limited down-
formance was better than its weakness in the power demand. quarter of weakness in the bottom line. volumes declined by 5%. Further, 5% side to the stock. ` 1470
LAST CLOSE X `1,393 STOP LOSS X `1,360
estimates, profitability was
dragged down by higher than
expected depreciation, finance
cost and tax rate. It said dele-
OVERHEATED To justify current valuations, TVS has to double its Fairfax Plans to
veraging and improving utili-
sation in South will help drive Ebitda margins by 2020, a target which looks difficult to meet Click into Indian
earnings from FY18E onwards.
The stock rose 0.70% to `64.65
on Wednesday.
Angel Broking has a buy on
Maruti Suzuki India with a
Does the Pricey TVS Stock XX From ET Markets Page 1

For the financial year ended March

target price of `8,495. The
brokerage said the company
continues to hold 50% share
in passenger vehicles and said
the launch of new models has
Have Earnings to Back it? Margins, however, didnt move up
2017, the companys consolidated net
profit increased by 396% to `43.5 crore
against `8.80 crore last year. Total reve-
nues stood at `441.3 crore, up 31%,
against `337 crore last year. Segment-
helped ride the premiumisa- TVS Motor: PE Band meaningfully in the past two years wise, Infibeam registered service rev-
tion wave. It said due to the 50 despite having favourable raw mate- enues of `160 crore for FY17, up 56%,
ET Intelligence Group: TVS Motor PE Avg 34.74 rial costs and decent volume growth. from `103 crore in the last fiscal.
3-4 months waiting period, 40
has become the most expensive stock Gross margin dropped between FY15 Product revenues rose by 20% to `291.5
strong demand and GST-led
in the auto space despite having an 30 and FY17, even as that of rivals Bajaj crore from `234 crore. The companys
price decrease, the premium unimpressive financial perfor- and Hero MotoCorp improved in the Ebitda grew to `83 crore for the fiscal
pie is expected to grow to 20% 10.29
mance. The stock is trading at 31 20 range of 2-5 percentage points. compared with `27.4 crore last year.
in FY19E. The stock rose 1.11% times the two-wheeler makers pro- Besides, a sizeable pickup in the vol- Infibeam is a business-to-business e-
to `7,701.60 on Wednesday. jected earnings in FY18, a premium 10 umes of the Apache bike and Jupiter commerce company aiming to regis- o FAANG
e nts in the tw rter
of 65% to the companys five-year scooter was unable to lift margins. ter nearly four-fold jump in revenues Invest m d qua
Religare Broking has a buy 0
to `2,000 crore by FY20 from the `470 in secon
on LIC Housing Finance with
average price-earnings (P/E) and Aug 16, 2012 Aug 16, 2017 The stock has run up on the expecta- declined
30% to the industry average. Source: Bloomberg, compiled by ETIG tion of double-digit margins by the crore in last financial year. In 2016, it
a target price of `748. The The dichotomy is that Eicher end of FY18 and that it will be able to became the first e-commerce compa- Bloomberg
brokerage said asset quality Motors, the maker of the cult Royal expand market share. However, in the ny to get listed on the Indian bourses.
risks are limited, where loan Enfield bikes, with its higher degree GREAT EXPECTATIONS current scenario, it appears that these BCCL, the publisher of this newspa- NAVNEET DAGA
against property is also tilted of volume visibility and industry- The stock has may not be met simultaneously per, owns shares in Infibeam. F&O Strategy Head - Derivatives Research
in favour of salaried segment. leading operating margins is trading most likely, it will achieve only the Driven by venture capital funds and
lower than TVS. run up on ex- market share guidance this year. other financial investors, some of the
It said the company will be
The financial performance of TVS, The competition in the scooter seg- e-commerce companies have been in Tata Global August Futures
key beneficiary of govern-
particularly from the operating mar- pectations of ment is set to intensify as market consolidation mode. Alibaba and
ments thrust on affordable
housing. The stock rose 0.43%
gin front, has been the same old story double-digit profit leader HMSI has set a very aggressive SoftBank-backed Snapdeal had been BUY 192-195 range
for the last 20 quarters despite decent volume growth target for FY18. looking at a merger since early this year
to `660.25 on Wednesday. volume growth. The operating mar- margins by end of FY18 The Street has been pricing in an op- but called off its talks with Flipkart re- CMP `194 TARGET `225 STOP LOSS `179
gin (Ebitda) remained in the range of erating profit margin of 8.0-8.5% for cently. Fashion retailer Myntra was Note: Massive breakout on long term charts seen on the stock with
6-8% as the company continued its mance, the management has main- FY18 and FY19 with 15% and 10% vol- purchased by Flipkart in 2015. huge volumes and fresh long build-up. Spike in options volatility
investment in brands. It is not very tained its guidance of double-digit ume growth, respectively. To justify Consolidation has started happen- on OTM options indicates traders long bias. Momentum likely to
Smallcap Mantra different for the June quarter even if operating profit margin by the end of the current valuations, TVS needs to ing a little too early in the sector as it continue in near term.
one strikes off a one-time compensa- FY18, saying that volume ramp-up double Ebitda margin by 2020, the was driven by investors. I believe there
Atul Auto tion to dealers for implementation of would reduce fixed costs per vehicle. probability of which looks low. This is is room for multiple players in the OPTIONS
GST. The adjusted operating profit In addition, the company aims to im- why 61% analysts rate the stock Sell. Indian market unlike that in the West Index short strangle Bank Nifty weekly expiry, 24th August
CMP (`) 438.05 margin at 7.1% was flattish compared prove two-wheeler market share by The 12-month consensus target price, where one player dominates, said
Bank Nifty 24th August Weekly expiry : Sell 25000 Call at `48 and
1-M Return (%) 4.38 with a year earlier. 1.5 percentage points in FY18. At the compiled by Bloomberg, indicates Harminder Sahni, founder of Wazir
Sell 23800 Put at `50, Current inow of 98-105 points, target on
52-week H/L 512/389.85 Undeterred by the financial perfor- end of FY17, it had a share of 14.2%. 19% downside from current levels. Advisors that tracks the sector. As far
spread `20 with stop loss of `160 on spread.
FY18E PE (x) 18.0 as niche and specialised etailing is con-
cerned, there is room for plenty.

Tata Global Beverages Scrip Scales

Atul Auto is a manufacturer AMIT TRIVEDI
of three-wheeled commercial
Fx Technical Technical Strategist
vehicles in Gujarat. Although
Sensex Rises USD/ INR Status: Likely to retest `63.5

Himalayan Peaks with US Foray

FY17 was a challenging year
due to demonetisation and the
VAT issue, it is well poised for on Global Cues Call for the day: Go short on rallies around `64.2-64.3
revenue/PAT to grow at 22/36% Target `63.5 (SPOT) STOP LOSS `64.55 (SPOT)
CAGR respectively over FY17- quarter, said Sanjay Manyal, ana- XX From ET Markets Page 1
19E, driven by revival in rural Tata Global Beverages lyst at Losses from EUR/USD Status: towards $1.1900
demand due to the better mon- 205 Price on BSE (`) 193.3 associate businesses and joint ven- Signs of easing tensions between the US CURRENT SPOT: $1.1700
soon, pan-India launch of petrol Mumbai: Shares of Tata Global tures have reduced to `1.2 crore in and North Korea was the key trigger
Beverages rose to a record high on the June quarter from `33.2 crore in that set the recovery in motion. Call for the day: Go long on decline around $1.1690
and electric three wheelers in 170 138.1
Wednesday as investors cheered the previous quarter. Market participants said corporate Target $1.1880 STOP LOSS $1.1625
FY18, expansion of the com-
the companys foray into the US Though the companys consoli- earnings for the June quarter has been
panys geographical presence, market with its Himalayan pre- dated sales declined by 1.8% year-on- largely disappointing. The disconnect
a pick-up in exports, owing to
the introduction of petrol ve-
mium water brand, a first for an
Indian FMCG company.
year, analysts were encouraged that
the GST-led impact was not higher
between valuations and earnings
growth continues. However, with strong
Commodity Calls Technical Strategist

hicles and a lower base. Second Tata Global Beverages closed 8.17% 100 on domestic brands. The company inflows continuing, downside in the COMMODITY EXCHANGE STRATEGY
higher at `193.30 on Wednesday. The Aug 16, 2016 Aug 16, 2017 reported a 2.4% growth in Ebitda market looks limited, said Harsha
quarter numbers are expected
to be strong, owing to revival in stock hit a record high of `196.25 ear- margins and 14.1% growth in ad- Upadhyaya, CIO-equity at Kotak Sell in range `28,850-28,900
lier in the day. The last time the stock in the coming quarters. justed net profit year-on-year which Mutual Fund. Brokerage CLSA said in GOLD (Oct) MCX SL `29,150 Target `28,300
rural demand and new permits
rose to an all-time high was in The focus on profitable growth in were both ahead of estimates. a note on Friday that of the companies
for three wheelers issued in November 2012. the core businesses is quite encour- The stock currently trades at price- under its coverage that have reported Buy in range `414-412 SL `407
Maharashtra. We have a buy Analysts said, in addition to the US aging. The run-up in the stock price to-earnings ratio of 20 times its FY18 earnings so far, the bias has been more COPPER (Aug) MCX Target `426
rating on the stock with a target foray, the managements decision to lately is not just because of the US estimated earnings. Other FMCG towards downgrades than upgrades.
price of `528. exit loss making global businesses expansion but also because of good companies are trading at an average Foreign investors remained net sellers
Buy in range `192-191 SL `188
By HDFC Securities and refocus on core, profit-making results where losses from associate price-to-earnings ratio of 40 times for the fifth consecutive session on ZINC (Aug) MCX Target `198
businesses could boost profitability brands have greatly reduced in the their FY18 earnings. Wednesday, provisional data showed.

Market Intelligence Powered By: ETIG Database

Shares & Trades in Lakhs ADVANCE & DECLINE HIGHS & LOWS FII ACTIVITY (` Cr.) MF ACTIVITY (` Cr.) F&O Corner-NSE
SENSEX NIFTY BSE NSE BSE (Number of traded scrips) NSE BSE (Number of scrips) NSE EQUITY DEBT EQUITY DEBT Positive Trend Negative Trend
Open 31566.24 9825.85 Date Turn Shares Trades Turn Shares Trades A B Others Total Total A B Others Total Total Date Buy Sell Net Buy Sell Net Date Buy Sell Net Buy Sell Net
Spot Future % OI Spot Future % OI
High 31805.99 9903.95 16/8 4402 3128 13.25 26122 13571 95.48 Advances 248 741 648 1637 1081 52WK High 16 19 1 60 37 14/8 3289 4813 -1524 292 490 -197 10/8 944 983 -38 1627 2921 -1294 Company Price Price Diff Chg(%) Company Price Price Diff Chg(%)
Low 31399.35 9773.85 Declines 92 337 531 960 490 52WK Low 1 21 12 98 27 11/8 4134 5964 -1829 418 1107 -689 9/8 1831 1360 470 2901 6132 -3231 Suzlon Enrgy 17.50 17.65 0.86 -0.87 InterGlobe A 1313.20 1283.80 -2.24 -1.85
Close 31770.89 9897.30 14/8 3132 2436 12.80 23897 14118 90.13 Jain Irrig. 94.95 95.75 0.84 -0.50 GSFC 126.70 124.95 -1.38 -0.17
Unchanged 1 15 104 120 52 All High 12 13 36 24 10/8 4529 5512 -984 839 626 214 8/8 2083 1435 648 6101 5924 177 Infibeam Inc 1435.70 1445.75 0.70 -1.71
Change(Abs) 321.86 103.15 RBL Bank 523.90 516.90 -1.34 0.75
11/8 4366 3842 17.74 32925 17721 116.78 Total 341 1093 1283 2717 1623 All Low 1 6 7 35 15 9/8 3644 4073 -429 1608 274 1334 7/8 1722 1215 507 8100 8953 -853 Indiabulls R 230.00 231.55 0.67 -0.17
52-Wk High (Aug 2)32686.48 (Aug 2)10137.85 Reliance Com 23.35 23.50 0.64 1.10 Maruti Suzuk 7701.15 7626.55 -0.97 -1.24
52-Wk Low (Nov 21)25717.93 (Dec 26)7893.80 8/8 6587 4689 1898 1907 976 931 4/8 3162 1780 1383 12386 4544 7843 Marico 315.95 317.90 0.62 13.27 Sintex Inds. 33.95 33.70 -0.74 -6.76
10/8 4589 3156 17.52 31702 16308 109.23 HCC 35.80 36.00 0.56 0.93
3-Yr High (Aug 2,17)32686.48 (Aug 2,17)10137.85 Turnover Cash Market ET Indices Tot Aug 44590 48790 -4199 17079 8012 9067 Tot Aug 16918 12484 4434 54051 49051 5000
Indo Count I 117.30 117.95 0.55 9.50
Pidilite Ind
3-Yr Low (Feb 29,16)22494.61 (Feb 29,16)6825.80 9/8 3608 2775 14.47 25685 15588 92.90 BSE NSE (` Crore) PHARMA ET-100 Total 2017 835224 781054 54170 263428 139910 123518 Total 2017 318858 263115 55689 1070919 789349 231547 JSW Energy 64.60 64.95 0.54 14.21
Strides Shas 914.75 919.65 0.54 1.29 GAIL (I) 371.20 369.65 -0.42 4.04
Five Consecutive Days Up Five Consecutive Days Down 45000 17300 11400 Spurt in Volumes at BSE Spurt in Volumes at NSE
Company Days Prev 5 Days 5 Days Company Days Prev 5 Days 5 Days Days 2 Weeks % Days Days 2 Weeks % Days
Active Calls Active Puts
(BSE) Close Close Ago Rtn.(%) (BSE) Close Close Ago Rtn.(%) Company Volume Avg. Vol. Chg Close Company Volume Avg. Vol. Chg Close Traded Open Chg in Traded Open Chg in
16475 11250 Company Contract Qty Interest OI (%) Company Contract Qty Interest OI (%)
WPIL 494.05 486.80 451.35 9.46 Jay Ushin 310.35 325.00 360.70 13.96 30000 Beekay Nirya 31000 31 99900.00 13.16 MOSt M100 2998205 12577 23738.58 18.70
National Per 1698.05 1594.75 1396.40 21.60 Nahar Indl.E 91.45 93.75 102.05 10.39 Info Edge 627596 1324 47317.27 953.70 Perfect Infr 114000 6000 1800.00 23.05 Suzlon Enrgy 17.50-Aug 38160000 33090000 0.18 BANKNIFTY 24000.00-Aug 17835480 857720 144.98
Elantas Beck 1901.20 1899.80 1875.20 1.39 Pasupati Acr 23.70 24.60 27.40 13.50 Max Fin.Serv 9697760 68086 14143.31 605.10 Astrazen.Ph. 122463 7173 1607.20 908.80 Suzlon Enrgy 20.00-Aug 24360000 58620000 -0.76 NIFTY 9800.00-Aug 16666950 5266650 13.97
15650 11100 BANKNIFTY24500.00-Aug 23573360 741000 0.59 NIFTY 9700.00-Aug 13878825 4462800 4.78
Mastek 278.20 276.95 243.95 14.04 Victoria Mil 3600.05 3739.50 3920.25 8.17 Kirlos. Oil 360878 3706 9637.09 394.65 Bhandari Hos 2954588 175344 1585.03 2.15 BANKNIFTY 23900.00-Aug 13827160 370320 73.01
BANKNIFTY24400.00-Aug 20883080 469440 21.55
Ceat 1711.35 1700.05 1688.20 1.37 GMM Pfaudler 524.79 525.40 567.10 7.46 15000 Birdhi Chand 99000 1246 7844.79 12.21 Kotak Bank D 225792 16111 1301.45 250.14 BANKNIFTY24300.00-Aug 19213960 335320 -36.96 BANKNIFTY 23800.00-Aug 11780960 414360 61.33
Incap 58.65 55.90 50.65 15.79 Vadilal Ind. 844.65 852.25 895.45 5.67 14825 10950 DB Corp. 77270 1509 5021.73 363.80 Rane Brake L 109658 7894 1289.11 1323.15 NIFTY 9900.00-Aug 17395050 3286800 -10.50 BANKNIFTY 24100.00-Aug 11632320 494000 141.92
KSE 1355.40 1345.95 1325.05 2.29 SML ISUZU 947.00 950.30 986.60 4.01 Astrazen.Ph. 48160 966 4887.78 907.10 Murd.Ceram 865987 64201 1248.87 45.45 Tata Gl.Bevr 200.00-Aug 16303500 1575000 260.82 BANKNIFTY 24200.00-Aug 9667800 682920 322.91
Eastern Silk 6.93 7.29 8.49 18.37 BANKNIFTY24200.00-Aug 15836480 193360 -55.91 NIFTY 9600.00-Aug 9567825 4151550 12.79
Sibar Auto 15.21 14.49 12.53 21.39 Bhandari Hos 4108248 121267 3287.78 2.21 Shreyas Sh&L 250434 23114 983.49 365.75 SBI 270.00-Aug 7530000 2874000 33.24
NIFTY 10000.00-Aug 15588525 5562225 -0.72
RR Financial 12.84 12.23 10.60 21.13 Blue Blend(I 32.85 36.10 41.55 20.94 Phoenix Mill 57791 2180 2550.70 523.85 Cybertech Sy 255466 24821 929.23 57.00 SBI 300.00-Aug 15555000 7509000 -7.26 NIFTY 9500.00-Aug 7509675 5566350 -0.19
0 14000 10800
Simran Farms 83.90 82.30 77.59 8.13 Vardhman Tex 1157.30 1162.90 1194.55 3.12 Guj.Pipavav 1025686 42945 2288.36 140.55 Aarvee Denim 825966 82089 906.19 29.40
Victory Papr 17.54 16.71 14.45 21.38 Aarti Drugs 512.65 513.65 545.40 6.00 Aug 9 Aug 16 JULY 17 Aug 16 Fairdeal Fil 69248 3198 2065.20 30.45 Godfrey Phil 1201615 120638 896.05 1041.80 Future OI Gainers Future OI Losers
Pankaj Poly. 12.02 11.50 10.01 20.08 Aarvee Denim 29.45 32.70 55.65 47.08 VA Tech Waba 315161 14576 2062.17 632.20 Pennar Engin 136717 14306 855.66 92.60
Prerna Infra 34.00 33.54 31.00 9.68 Kilitch Drug 51.25 51.70 59.00 13.14 Open Chg in Future Chg in Open Chg in Future Chg in
MSR (I) 31.85 30.35 26.30 21.10 Coral Lab. 991.20 1000.00 1058.84 6.39 Positive Breakouts Negative Breakouts Best Returns on BSE Worst Returns on BSE Company Interest OI (%) Price Price (%) Company Interest OI (%) Price Price (%)
Goldstone In 118.25 112.65 92.95 27.22 Vishnu Chem. 239.75 247.60 274.50 12.66 Max Fin.Serv 4819000 37.69 608.40 1.26 Voltas 3220000 13.86 544.65 -1.71
Company Days 20 Days % 50 Days Company Days 20 Days % 50 Days Company Days Prices % Average Company Days Prices % Average Havells (I) 3450000 15.46 465.05 -2.81 Indrapr.Gas 936650 8.59 1279.45 -0.70
(BSE) Close Mvg Avg Chg Mvg Avg (BSE) Close Mvg Avg Chg Mvg Avg Close Chg Volume Close Chg Volume JSW Energy 73865000 14.21 64.95 0.62 Cummins (I) 583200 7.95 922.15 3.99
52 WEEK AT NSE * ALL TIME AT NSE Marico 4859400 13.27 317.90 -0.66 HDIL 31328000 6.98 62.65 -1.42
CSL Finance 593.50 402.03 47.63 351.41 Alora Trdg. 12.95 23.28 44.37 26.99 Fortnight Fortnight Hero Motocor 968200 13.16 4020.85 1.62 Sintex Inds. 15632250 6.76 33.70 6.48
HIGH Jindal St(H) 178.40 Time Technop 183.35 OCL Iron & S 3.60 Goldstone In 118.25 80.53 46.84 68.77 Sanghvi Move 143.15 224.39 36.20 235.48 Goldstone In 118.25 71.65 65.0 79113 Aarvee Denim 29.45 62.15 -52.6 46342 Ashok Leylan 49294000 11.96 105.20 -0.09 Mahanagr Gas 706800 6.36 1040.05 0.61
Agri-Tech 73.05 JSW Steel 238.85 Titan Co. 638.30 Ortel Comm. 27.15 Layla Text 11.04 7.76 42.27 8.79 Kalpa Comm. 50.55 78.85 35.89 114.58 Modern Steel 13.45 8.46 59.0 8520 Dwekam Inds. 1.91 3.13 -39.0 400984 Biocon 10540800 10.70 329.30 -5.91 Page Inds. 29450 5.61 17124.35 2.45
Bata (I) 675.30 Jubilant FdW 1444.75 Tube Invest. 830.00 Pennar Engin 89.90 Stovac Ind. 3415.05 2583.05 32.21 2558.08 Vani Commer. 26.20 37.75 30.60 43.95 Indo Count I 9887500 9.50 117.95 4.66 United Brew. 1085700 4.96 810.90 1.65
CSL Finance 593.50 377.00 57.4 13067 Sanghvi Move 143.15 233.00 -38.6 31640 ACC 1214400 8.97 1811.30 1.54 National Alu 10992000 4.85 69.40 4.83
Britannia 4311.95 Kirloskar In 1689.00 LOW Pincon Spiri 50.35 Veer Energy 34.00 26.10 30.27 24.06 Religare Ent 69.75 100.31 30.47 138.07 Pankaj Poly. 12.02 7.86 52.9 38537 Ortel Comm. 27.30 42.70 -36.1 107218 Power Grid 11024000 8.21 220.70 -0.99 Tata Elxsi 1139600 4.75 1691.45 2.47
Emkay Global 190.25 Lakshmi Mach 6430.00 Aarvee Denim 29.40 PC Jeweller 345.05 266.19 29.63 259.22 Dwekam Inds. 1.91 2.73 30.04 2.63
Piramal Phyt 43.80 Layla Text 11.04 7.43 48.6 216391 Religare Ent 69.75 104.00 -32.9 174312
Endurance Tc 1026.90 Meghmani Org 62.30 Agro Phos In 17.65 Incap 58.65 46.35 26.54 42.68 Responsive I 47.70 67.15 28.97 76.94
Future Retal 496.80 Metkore Allo 6.15 Banswara Syn 132.50 Prolife Indu 31.10
Dhampure Sp. 20.95 16.81 24.63 16.18 Blue Blend(I 32.85 44.90 26.84 48.38
1 Month 1 Month Market-Wide Position Limit Top Sectoral OI Gainers
Gabriel (I) 180.00 Nalwa Sons I 1150.00 Blue Blend(I 31.65 Religare Ent 68.50 Modern Steel 13.45 7.25 85.5 5437 Kalpa Comm. 50.55 135.05 -62.6 30310
Emami Paper 167.65 135.11 24.08 122.38 A.Birla Mone 88.85 118.51 25.03 90.52 MWPL OI MWP Chg in Open Chg in Trd Chg in
Gillette (I) 5440.45 PC Jeweller 349.00 Bohra Inds. 40.25 Responsive I 46.70 RMG Alloy 7.00 3.79 84.7 25320 Ortel Comm. 27.30 67.55 -59.6 58941
Perm Magnets 48.80 39.59 23.26 37.35 JBF Inds. 166.20 220.70 24.69 258.48 Company (Lakh) (Lakh) (%) OI (%) Sector Interest OI (%) Qty TQ (%)
GOCL Corp 534.80 Pennar Inds. 58.30 Easun Reyrol 20.10 RPG Life Sci 296.70 V2 Retail 328.95 267.96 22.76 253.76 CSL Finance 593.50 333.65 77.9 7281 Alora Trdg. 12.95 31.65 -59.1 108551
Radhe Devlop 20.50 26.93 23.88 30.78 JSW Energy 820.31 859.01 104.72 16.03 Packaging 4819000 37.69 3873000 79.31
Goldstone In 118.35 Petronet LNG 230.70 E-Land App. 17.80 RMG Alloy 7.00 5.71 22.59 4.79 CIL Securits 31.15 40.87 23.78 35.98 Neo Corp Int 4.98 2.95 68.8 123191 Aarvee Denim 29.45 65.00 -54.7 23981
Sanghvi Move 140.40 HDIL 551.31 547.12 99.24 -10.47 Diamonds 4809000 8.02 9198000 -11.44
Graphite Ind 246.90 Quintegra So 2.40 Energy Dev. 19.50 Sarda Energy 368.35 305.19 20.70 273.94 Nitin Fire P 4.74 6.21 23.67 8.18 GVK Power 12.76 7.56 68.8 5003788 Shilpi Cable 27.05 52.40 -48.4 311714 Jaiprak.Asso 2953.79 2751.28 93.14 -6.86 Mining & Minerals 92011600 5.15 61036100 18.59
Sarla Perfor 43.70
HDFCNiftyETF 1010.97 Radico Khait 164.30 Ess Dee Alum 32.15 Vegetable Pr 5.01 4.16 20.43 3.64 Panafic Indl 2.52 3.28 23.17 4.28 3 Months 3 Months GMR Infrast. 4628.79 3978.90 85.96 -0.93 Automobiles 132734125 4.84 76692925 77.08
Servalak.Pap 1.30 DLF 893.84 749.05 83.80 10.11 Paints & Varnishes 3882400 4.77 2196800 5.53
HDFCSenETF 3243.50 Sarda Energy 376.80 Jain Studios 4.00 Autoline Ind 81.95 68.19 20.18 60.39 Cigniti Tech 200.50 260.85 23.14 274.40 Magnum Ventr 11.98 3.85 211.2 125206 Meenakshi En 54.95 311.50 -82.4 61319
Heritage Foo 1354.05 Tasty Bite 6100.00 Magadh Sugar 210.70 Signet Inds. 7.35 Dwarikesh Su 66.20 55.54 19.19 47.53 Eastern Silk 6.93 2.40 188.8 147377 Videocon Ind 20.05 99.85 -79.9 550516 Infibeam Inc 59.35 48.90 82.39 0.73 Textiles 21571150 3.77 11822000 12.26
Piramal Phyt 46.85 60.78 22.92 67.33 Indiabulls R 533.18 436.10 81.79 -0.86 Power Generation 317857500 3.47 110098000 12.67
Hero Motocor 4044.00 Tata Gl.Bevr 196.75 Mandhana Ind 6.70 Themis Medic 446.70 Goldstn.Tech 11.01 9.24 19.16 8.77 Cosmo Ferr. 23.00 29.69 22.53 28.44 ABC Bearings 408.15 173.30 135.5 21156 Nitin Fire P 4.74 22.15 -78.6 377238 Fortis Healt 591.51 482.54 81.58 -7.07 Telecom Equips. 11526000 3.09 2148800 48.71
Indrapr.Gas 1318.85 Tata Steel 632.65 Megasoft 13.05 Vimal Oil Fd 15.70 Prima Agro 14.46 12.16 18.91 11.71 Phytochem I. 44.75 57.48 22.15 58.98 Raisaheb Rck 150.75 67.05 124.8 49251 Ortel Comm. 27.30 106.20 -74.3 21441 Suzlon Enrgy 8260.51 6709.20 81.22 -0.11 Transport 5983875 2.41 9185325 123.82
InterGlobe A 1346.70 Thangamayil 377.00 Nitin Fire P 4.55 Zicom Electn 20.65 Thangamayil 366.95 309.04 18.74 270.27 Guj.Foils 11.30 14.48 21.96 14.62 Avanti Feeds 1941.05 898.30 116.1 28861 Lanco Infrat 0.87 3.36 -74.1 9141577 Rel Capital 236.76 191.75 80.99 -2.26 Consultancy 4752000 2.35 2335200 -34.76
Disclaimer: The content hereof does not constitute any form of advice or recommendation by the newspaper. BCCL or its affiliates will not be liable for any direct or indirect losses caused because of readers reliance on the same in making any specific or other decisions. Readers are recommended to make appropriate enquiries and seek appropriate advice before making any decisions.

Money Matters  11
Q&A KEVIN MARTIN ET in the Classroom
Investments Head-Retail Banking & Wealth Management, HSBC Asia-Pacific

in CPs by You Can

Banks See
35% YoY HSBC will Leapfrog in Borrow
Rise in May
India on Back of Aadhaar MF Units
When there is urgent

need of money for
Mumbai: Bank loans to corpo- short tenures such as

rates may have slowed down, s head of retail bank-
ing and wealth man- ON RIGHT-SIZING three months to a year,
but that doesnt signal a fall in
one option is to borrow
demand for working capital, as
companies are increasingly
agement division for
HSBC in the Asia-Pa-
We took a against your mutual
raising funds through commer-
cial papers.
cific region, Kevin very con- fund units. It is similar
Martin is in charge of to an overdraft facility
Banks investments in com-
the largest retail division for Eu-
scious deci- on a bank account, and
2. How does one apply for a loan?
mercial papers (CPs) stood at Some online portals offer you
`1.19 lakh crore as of May 2017, ropes largest lender. In an inter- sion to reduce the the advantage is that loans quickly, if you hold units
up 35% from a year earlier, ac- view to Joel Rebello, he talks in demat form and have a prior
cording to the latest Reserve about how HSBC plans to deal with number of branches to you do not have to
approval. If you hold units in physical
prematurely redeem
Bank of India data.This at a
time when pure loans have bare-
technological changes in retail focus our resources on your units, nor does
form, you first need to execute a loan
agreement with your financier. The fi-
banking and the banks plans for
ly managed to grow 5% and
loans to corporate are decelerat- India after a cut in branches an- the big 13 cities your SIP get affected. nancier will write to the mutual fund
registrar like CAMS or Karvy and ask
nounced last year. Edited excerpts: ET explains the
ing. Investments in CPs is them to mark a lien on a certain num-
growing faster than pure bank Some foreign banks are launching
process and the type ber of units that are being pledged.
loans is largely a reflection of Technology is changing a lot of wallets to get access to deposits in of funds that can be Financiers typically lend about 60-70%
borrowers preference, said things in retail banking. How is offered as collateral of the value of the pledged units. The
India. Any such plans for HSBC?
Siddhartha Sanyal, chief India registrar in turn will mark the lien and
HSBC dealing with the change? I spent a lot of time in China in the
economist at Barclays. It is a letter is sent to the financier with a
cheaper than loans in the MCLR Banking needs have changed glob- last three years and in the offices 1. How can you get a copy to the investor confirming the
(marginal cost of funds based ally, and also in India post demone- of Alipay and Tencent. I under- loan against your marking of a lien on the units.
lending rate) system of loan tisation and other regulatory stand their wallets well. We mutual fund units?
pricing, he said. changes. Our role, therefore, is to launched our own wallet in Hong
However, CPs are not compara- What would it cost? 3. How can the lien on the mutual
change with the community. Inter- Kong, called PayMe, nine months
ble with bank loans, and capital Loan against fund units be removed?
net had increased access to ac- ago, which helps transfer money your equity or
investment remains a drag on
counts but it also means that people through a phone number. As we hybrid mutual Once the loan is repaid by the
overall demand from banks.
visit branches less often. For HSBC, fund units could be tak- borrower, the financier can
Commercial papers are rela- look at new infrastructure, one of
branch penetration outside of Hong en from a bank or a non- ask for removal of the lien and
tively shorter term instru- the consideration is a wallet but
banking finance compa- send a request letter to the fund
ments, typically issued to meet Kong is low, which is a disadvan- we need to determine the use case
ny (NBFC) by pledging house. A financier can also request
working capital instruments tage historically as a result of which for it in India. In China, it exists on your mutual fund units. for a partial removal of lien in which
and banks are more comfortable our focus has been on the premier the back of the social media plat- You can pay back the case, lien on some of the units will be
in parking their funds in these
or advanced segment. But now, as form. There is no similar capability loan at the interest rate removed and these units are free
instruments, Sanyal said.
needs change, we can deliver ser- agreed with the financi- units. This can happen when financi-
For the countrys largest lend- in India. As regulations move and
vices that we could not deliver be- er. Depending on the ers receive part payments.
er, State Bank of India, invest- the quality of repository improves
ments in CPs rose even in abso- fore, so we are now building an ar- to allow us to open accounts on- quantum of loan you
lute terms than loans in June. chitecture to enable us move more take and the tenure, the 4. What happens if the investor
line, it will be an area we will defi- interest rate could be in
The top lenders loans rose nimbly in terms of that technical ca- defaults in making payment to the
1.16% or `18,435 crore year on nitely build capabilities for. We the range of 10-11% on
pability. We are working on a raft of also have to fix our mobile capabil- these mutual fund
year in June 2017, while its in-
vestments in CPs rose 87% or application programming interfaces ity and underlying architecture in units. When the units In case the borrower defaults in
`27,485 crore in the same period. (APIs) to enable us to be repeatable are under lien, you can- making payment, the financier
the next 12 months. I am yet to be
Outstanding issues of CPs Our traditional model has been to not sell or switch the can enforce the lien i.e. send a
across many markets. It is not nec- convinced that wallets are the
amounted to `3.9 lakh crore as essary that what works in New York
TECH IN BANKING support the international needs of units. Financial plan- signed request to the mutual fund to re-
right place to spend the time and ners recommend taking deem the units and send the proceeds
of end May with mutual funds our customers, which is a narrow
and NBFCs as other major in-
will work in Sydney, so this new ar- We are work- set. Our credit card book is small
the money. on equity-oriented mu- cheque to the financier.
chitecture gives us the ability to
vestors. Even as capacity expan-
sion is slowing credit demand build a common platform from ing on a raft of because we have a small network
You said your acquisition rate for
tual funds and not
against liquid or debt- 5. What is the advantage of
and small distribution capability
from banks, many large corpo-
rate are deleveraging and pre-
which we can build a scale from.
Now, we will roll them out globally,
APIs to enable but once you overlay new capabili-
new customers has doubled. How oriented funds. borrowing against your mutual
has that been possible? fund units?
ferring to use their own resourc- including in India. us to be repeatable ty, new technology and new ways
We used third-party sales agents Loan against mutual funds
es to fund business. of customer validation, you are not
SK Ghosh, group chief econom-
Can you elaborate on what these
across many markets... restricted any more. Our team has
and mobile sales force to acquire gives you the option of receiv-
ic advisor at SBI, said some top new customers. We also used digi- ing immediate liquidity against
corporates reported contraction changes will be? Now, we will roll them doubled the rate of new bank cus-
tal aggregators to get more leads. the mutual fund units that you own. It
tomers added in the last one year. is like an overdraft facility for short-
in loans in FY17. About 1,000 non-
financial entities reported an ag-
We know that customers are com-
fortable with WhatsApp, WeChat,
out globally, including In India, the retail banking and
We went through a period of con-
solidation in India over the last few
term monetary requirements, with a
gregate decline of `1,00,000 crore.
The debt contraction could ei-
Facebook, Instagram or Snapchat. in India wealth management business pro-
vides a source of funding for our
years but now, we are in growth
relatively shorter tenure than other
loans. It is a beneficial monetary tool
We have to build the capabilities to phase. We simplified our business for those looking to leverage their oth-
ther be through repayment, eq- tecture, is India. In India, the regula- commercial banking and global
connect these interfaces. In China, and got back to what we knew erwise idle mutual fund investments,
uity conversion or restructuring tory efforts, demonetisation and banking business. The opportunity
of debt, Ghosh said. access to HSBC is through WeChat well. We also know customers bet- and also raise capital quickly for short
creation of a central repository for exists partly in the credit card -term financing needs. You need not
Banks share in the flow of rather than through standalone ter because of Aadhaar and credit
biometrics helps to do customer business, which we are rebuilding, sell your mutual fund units, hence your
funds to the commercial sector, apps, though you can do through bureaus. Our credit card share is
which includes manufacturing identification much more effective- part of it is designing mortgages financial plan remains intact and nei-
standalone too. But largely, custom- not even 1%. Part of the opportuni-
and service sectors, declined to ly. You can rely on external data tailored only for our customers ther is your ownership of fund units di-
ers want an app with some rewards ty for us is to reclaim our share in vested after pledging them for a loan.
38% in in the year ended March sources with much more confi- and part of it is to build easy ac- TEXT: Prashant Mahesh
and minimum balance to help them credit cards on a par with other
from around 50% in FY16, ac- dence. We can take our platform to cess to savings and checking ac-
cording to the Reserve Bank of pay. They dont want to go through markets in Asia. We have already
the platform laid across the coun- counts that people can open on-
Indias latest Financial Stability two factor authentication. We have improved our capabilities on third-
try, which will help us leapfrog and line. We took a very conscious
Report. However, the aggre- spent over $1.5 billion in the last party sales agents. We are now
gate flow of resources to the thats why India is really attractive decision to reduce the number of
two years in six markets globally to writing mortgages at a similar pace
commercial sector was not af- to us. It is the only market that has branches to focus our resources on
build a new architecture. The first of a year ago. Its now a growth
fected, owing to a sharp increase done all of this. the big 13 cities last year but, at
market outside those six United story in India though our underly-
in private placements of debt by the same time, retain the vast ma-
non-financial entities and net is- States, Canada, Mexico, France, ing role is to provide funding to
How will it help your business in jority of our deposits, which we
suance of commercial papers United Kingdom and Hong Kong our corporate bank.
India? have retained by 90%.
(CPs), the report said. where we are building a new archi-

Whats Cooking? A Healthy Bull Market

Likely to Be
LPG Ecosystem, is What Longest
to cause ailments such as asthma and To its credit, the government has been on Record
Expert Take bronchitis. Reasons why LPG connec-
tivity is crucial from a health perspec-
trying to wean people away from subsi-
dy in a methodical manner: its sourc- Bloomberg
tive. ing more LPG, is ramping up infra-
But any attempt to strike a balance be- structure or supply and New York: Bull markets dont
tween economic and social compul- distribution especially last-mile con- die of old age and with neither a
sions throws up challenges, and the po- nectivity and extending connections major policy mistake nor a sig-
litically easier path to take in the case to below poverty line (BPL) households nificant economic disruption on
of LPG would be to continue with gen- through the Pradhan Mantri Ujjwala the horizon, theres life in the
eralised subsidy. Yojana (PMUY). current cycle yet.
To be sure, subsidy is a sensitive issue, Most importantly, the government Thats the view of Krishna
SAURABH KAMDAR especially because it affects the liveli- has been extraordinarily successful in Memani, chief investment of-
hood of the poor. And more so since it persuading tens of thousands that ficer at OppenheimerFunds. in
In purchasing parity terms, per capita protects them from market-price vagar- didnt need subsidy to Give It Up vol- a recent paper, which details at
income in India is the second-highest ies and facilitates sustenance. untarily. least 15 reasons the
compared with its four immediate Last fiscal alone, under-recoveries in It is also trying to tackle illegal diver- current U.S. equity bull market
south Asian neighbours. LPG and kerosene tantamount to sion of domestic gas for commercial us- will persist for a ninth year.
Yet a cylinder of cooking gas (lique- `20,000 crore. This years Union Budget age, which in a country as large as India Events of the past year includ-
fied petroleum gas, or LPG) in Pakistan has set aside `25,000 crore for oil sector is very difficult to curb completely. ing make-or-break elections for
and Nepal costs twice as much as in subsidy. What creates room for such sharp prac- the euro have washed over fi-
India, and ~40% more in Bangladesh tices is a 35% cost differential between a nancial markets, suggesting
and Sri Lanka. Clearly, these countries commercial LPG cylinder (`1,000 for a policy, not politics, would be the
with far more difficult developmental 19 kg cylinder) and a domestic one (`477 rallys undoing.
challenges have bitten the bullet. for a 14.2 kg cylinder). Memani sees support for the
In the context, the Narendra Modi gov- The governments approach has been stock market from global eco-
ernments move this week to hike LPG two-pronged: one, target reduction in nomic growth, an end to the dete-
prices by `4 every month is exactly subsidy and consequently increase the rioration in global trade and no
what the doctor ordered. Just as would capacity to invest in infrastructure, and plans for significant monetary
be the reported move to raise the price two, continue extending benefits to policy tightening from either the
of kerosene by 25 paise every fortnight. BPL households through PMUY. Federal Reserve or the European
To be sure, LPG prices by itself are not Indeed, these are stepping stones to Central Bank.
the sole barometer of any govern- creating open-market efficiencies, and Stocks still cheap compared to
ments commitment to extending af- in a progressive society, generic subsi- bonds: Despite share valuations

fordable services. The ability to invest dies should be avoided for they are fis- looking expensive relative to his-
in infrastructure, making services cally debilitating incentives and end up tory, they are still cheap in relation
including revenue models efficient creating moral hazards. to bonds, Oppenheimer says. The
and viable, while simultaneously ex- Open markets always attract invest- earnings yield of the S&P 500 re-
tending subsidy to the economically de- ments, and competition results in bet- main over 2 percentage points
serving class, actually matter more. And one past attempt to rationalise ter services to consumers. At the end of greater than the yield on US
The government seems seized of this ration would a better word, actually the day, revenue models have to be via- Treasuries.
and has looked at access to LPG from consumption of subsidised LPG cylin- ble, too. An efficient LPG ecosystem Bull markets usually end after a
social, health and environment per- ders at homes had limited impact that offers access to cleaner fuel for the prolonged, pronounced period
spectives. because, after setting an annual quota masses at fair prices, and which doesnt of long-term outperformance to
Switching from wood to LPG reduces of 6 per year, the number was revised to haemorrhage through wanton subsi- bonds, according to the paper.
net carbon emissions by 67%, accord- 9 and eventually to 12 under political dies or one where subsidies are rein- There has been no signs of inves-
ing to a study by World LP Gas pressure, which pulled things back to stated at the first sign of political pres- tor euphoria about equities, as re-
Association. Estimates are that annu- square one. sure would indeed qualify as a fairly cent long-term relative returns
ally, a non-LPG household and there The Modi government has adopted a viable business model. are not excessive.
are 8 crore of them consumes wood different approach by limiting the Indias LPG ecosystem seems to be fi- Since 1994, the yield difference
equal to 10 trees, so the environmental amount of subsidy it bears per cylinder. nally taking that road, towards long- between bonds of speculative-
gains from proliferation of LPG are hu- Not surprisingly, as a proportion of the term sustainability, by limiting subsidy grade borrowers and government
mongous. price of a cylinder, subsidy has been re- to only the most deserving lot. Clearly, debt has been narrower than aver-
Chronic exposure to smoke from the ducing. Of course good luck in the form good economics is good politics. age more than half the time while
burning of traditional cooking fuels of falling crude prices have played a (Author is Director, CRISIL indicators of corporate health re-
such as firewood and cow dung is said very important role here. Infrastructure Advisory) main sound, according to

12  Finance & Commodities THE ECONOMIC TIMES | BENGALURU | THURSDAY | 17 AUGUST 2017

PRESSURE POINT Diverging opinions surface within 6-member monetary policy panel; insiders concerned over price pressures
Slow Growth Worries MPCs External Members Coffee Prices
Edge up
inflationary trajectory was not as These are indicative of a fading But the past few years of prudent and corporates in several sec-
Our Bureau expected, but there was no conclu- economic growth outlook, and a policies pushed June CPI infla- tors. Arabica coffee futures
sive evidence about whether caus- pessimistic outlook with respect tion to a record low of 1.54%, were higher on
Mumbai: The concerns of two es were permanent or temporary. to exports growth. which has since risen. While ad-
sets of members of the Monetary While four voted for a quarter Chetan Ghate of the Indian Sta- mitting that price pressures have Wednesday, recouping
Policy Committee the three point cut in its August 2 policy tistical Institute was worried eased, Governor Urjit Patel said, some of this weeks
nominated by the government meeting, Ravindra Dholakia who about growth. My biggest con- disentangling recent disinfla- losses, tracking a modest
and the other three from the Re- had dissented in the past too, had cern at the moment is the slowing tion in terms of relative roles of
rebound in other
Tweet of the Day serve Bank of India are begin-
ning to show divergence with eco-
argued for a half point cut. RBI ex-
ecutive director Michael Patra
rate of capital accumulation,
Ghate has written. Indebted
structural and, transitory drivers
remains a challenge. The present commodity markets.
nomic growth figuring promi- was for a status quo citing para- manufacturing companies con- low level of food prices is unusual
nently among outsiders, minutes doxical arguments of weak tinue to de-leverage, and envi- and is vulnerable to upward pres-
Mohamed A. El-Erian from the meeting show. growth while every forecast is for saged capex continues to decline. sures. Deputy governor Viral
@elerianm Outside members of the MPC strong growth. A prolonged period of weak in- Acharya who voted for a
have commented more about the Moving on to forward looking vestment growth will impact po- quarter point cut and
Not surprising @amazon slowing growth than the threat of indices that predict future eco- tential growth. neutral stance
would look to the #bonds inflation compared with insiders nomic activity, growth in the Indi- The MPC with a mandate to keep noted: I wish to re-
markets to fund part of who have voiced fears over price an Leading Index, constructed by inflation at 4% with a tolerance iterate that growth
pressures, the state of the bank- the Economic Cycle Research In- limit of 2 percentage point on ei- slowdown since Q1
their expansion. Other ing industry and uncertainties on stitute (ECRI), New York, is fall- ther side, has been focussed on it 2016-17 is rooted in
companies at similar stag- how the future would pan out. ing, as is Indian Leading Exports after years of price increase led to stressed balance-
es likely to follow There was near unanimity that Index growth, said Pami Dua. macro-economic complications. sheets of our banks

Quarts & Ounces How to Spend $100b? Maybe Chinas Suicidal Debt can December Arabica
Coffee Futures
COMMODITIES (2003=1000)
Buffetts Confused too Trigger Next Fin Crisis
Why is $100 billion stockpile
es in private and public debt, and
$1.3635 $1.3510

thus increasing downside risks in

Bullion CHANGE -30.1
a problem IMF study shows that the medium term.
On Wednesday On Tuesday
Berkshire Hathaways (Per lb)
DAYS INDEX PREV DAYS LAST WEEK This $100 billion isnt generating
second-quarter earnings borrowing has reached Credit to the non-financial sector

4599.6 4629.7 4529.2 any substantial returns for Berk- has doubled in the last five years, Rise in December
report revealed that the
shire or its investors. Buffett likes unsustainable levels the report says, and the credit to arabica coffee on
Cement CHANGE 0.00 to keep at least $20 billion in read-
companys cash stockpile
has grown to nearly $100
GDP ratio jumped to 230% last year. %Wednesday
DAYS INDEX PREV DAYS LAST WEEK ily available cash at all times, and Citing the experiences of other
billion, virtually all of Business Insider countries which have fuelled
2041.4 2041.4 2054.7 after the quarter ended, Berkshire
announced its intention to spend which is located in the growth via taking on debt aggres- 0.07%
US and would be relatively Beijing: Chinas huge debt pile sively, the fund warned Rise in December London
Foodgrains CHANGE -1.0 $9 billion on an acquisition, but
easy to put to work.
could be the trigger for the next that the current tra- cocoa on Wednesday
DAYS INDEX PREV DAYS LAST WEEK this still leaves more than $70 bil- financial crisis as borrowing jectory of Chinas
2136.8 2137.8 2106.9 lion sitting on the sidelines. Unless Unfortunately, reaches unsustainable lev- debt is danger-
Buffett figures out how to put this Warren Buffett and his els, according to a study from ous. $19
money to work, this stockpile of team seem to be having the International Monetary International
Edible Oil CHANGE -4.0
cash will continue to grow. difficulty figuring out Fund (IMF). experience sug-
Rise in November robusta
DAYS INDEX PREV DAYS LAST WEEK The IMF released its annual gests that Chinas coffee price on Wednesday
1421.6 1425.6 1378.3 Attractive Investment what to do with it
report on the Chinese econo- credit growth is on
Opportunities Hard to Find
Berkshire has a pending $9 billion
my, as it does with all major
economies, on Tuesday,
a dangerous trajec-
tory, with increasing
acquisition of Texas-based utility and while it revised risks of a disruptive ad- Gains in December New
tors, share repurchases make Could Berkshire Start Paying
Did You Know? Oncor, but the last major acquisi- the coun- justment or a marked York cocoa on Wednesday
sense if the shares are bought at a Dividend? trys growth slowdown,
tion the company completed was
price below intrinsic value. Berk- In the more than 50 years since growth the report said.
Worlds Shipping its $32 billion purchase of Preci-
shires current buyback authorisa- Buffett took over Berkshire, the outlook up- The scale of Chinas
sion Castparts. In reference to this IN COFFEE PRICE
Cos are Going purchase, Berkshires Vice Chair-
tion is set at a limit of 120% of
book value (its currently trading
company has paid a single $0.10
dividend in 1967, and nothing
wards for the
next four
debt binge is revealed by
the IMF, noting that to grow Chi- Market supported by
Super-Sized man Charlie Munger said this is
no screaming bargain like the old
for about 146% of book value).
Buffett feels that, at this price,
since. However, at a recent meet- years, the fund al- so issued
a stark warning about rising debt
nese GDP by 5 trillion renminbi in
2015-16, it took around 20 trillion
a slight rise in crude
days, meaning that its difficult to
ing, Buffett said dividends could
levels. The growth outlook has renminbi of new credit. oil
The hulking con- shares would be trading at a sig- be paid reasonably soon, even
find compelling bargains in the
nificant discount to intrinsic value.
been revised up reflecting strong By contrast, in 2007 it required just Speculators have
tainer ships that while I am around. Dividends are momentum, a commitment to 6.5 trillion renminbi of borrowing
current environment.
Buffett has said that if Berkshire been increasing a net
transport sneak- likely to be the last thing Buffett growth targets, and a recovering to do so.
Buyback Threshold Can be continues to generate more cash wants to do with Berkshires cash.
short position
ers, bananas and global economy, the IMF said in its Actual growth that was not fuelled
Raised than it can use, the company may report. by borrowing was much lower than Ample supplies
barbie dolls around the In his 2016 letter to shareholders, need to revisit its buyback policy, But this comes at the cost of fur- headline numbers in recent years,
world keep getting bigger. SOURCE: BUSINESS INSIDER; ADOPTED Source: Agencies
Buffett said for long-term inves- perhaps raising the threshold. FROM THE MOTLEY FOOL
ther large and continuous increas- the report showed.
So are the companies that
own them. A massive con-
solidation is underway in MCX FUTURE PRICES
the $500 billion global in-
NOT SO LUCRATIVE BONDS Mutual funds of ICICI Prudential
dustry and the survivors and SBI are the two biggest subscribers of Essel Mining bonds Onion Prices PRODUCT
now enjoy big economies of ALUMINI-1KGS (Lot-1 MT)

to Stay Firm in
scale and increased de-
mand, one year after excess
capacity caused the sectors
Crisil Downgrades Essel Mining; West Bengal
31-Aug-17 129.70







worst-ever crisis the

bankruptcy of South Ko-
SBI, ICICI Pru Funds may be Hit 29-Sep-17

15-Sep-17 1172.80






reas Hanjin Shipping. Asias SELECT ESSEL MINING BONDS 15-Nov-17 1051.50
1107.10 1051.30 1082.00 5.41 5 13

largest container line, Chi- 31-Aug-17 410.85 415.40 409.50 415.00 81679.18 19802 18764

nas Cosco Shipping Hold- Mumbai: Fund houses ICICI Bond sale date Coupon Maturity Amount 30-Nov-17 416.50 421.35 415.65 421.10 6966.52 1668 4324
28-Feb-18 422.00 426.00 422.00 425.65 55.30 13 56
ings, last month said it Prudential Mutual Fund and SBI rate (%) date (` in Cr) COPPERM-1KGS (Lot-250 KGS)
31-Aug-17 410.50 415.30 409.35 414.95 15359.48 14897 10261
MF are staring at mark-to-mar-
would pay more than $6 bil- ket losses after rating company January , 2017 7.9 April, 2020 85 30-Nov-17 416.60 421.45 415.75 421.00 1334.52 1275 2625
28-Feb-18 421.95 426.05 421.95 425.45 52.06 49 183
lion for rival Orient Over- Crisil downgraded non-converti- COTTON-1BALES (Lot-25 BALES)
seas International, owner of ble debentures of Essel Mining & January, 2017 7.83 April, 2018 130 31-Oct-17 18360.00 18480.00 18200.00 18420.00 2750.00 599 2197
30-Nov-17 17920.00 17950.00 17790.00 17920.00 1171.54 262 755
the worlds biggest vessel Industries to AA- and put the June, 2016 9.35 June, 2019 225 29-Dec-17 17870.00 17870.00 17730.00 17820.00 1611.31 362 1557
Aditya Birla group company on a Sutanuka.Ghosal CPO-10KGS (Lot-10 MT)
a carrier longer than the 31-Aug-17 494.00 498.80 493.50 496.90 9023.87 1817 3293
rating watch list. June, 2016 9.5 June, 2019 250
Empire State building. Den- Mutual funds of ICICI
marks A.P. Moller-Maersk Prudential and SBI are the two November, 2014 10.1 Jan, 2018 15 Kolkata: Onion prices will re- CRUDEOIL-1BBL (Lot-100 BBL)
main firm in West Bengal at least 21-Aug-17 3070.00 3080.00 3057.00 3062.00 115765.16 37704 20398
is in the process of buying a biggest bond subscribers of Essel 19-Sep-17 3086.00 3105.00 3082.00 3087.00 5294.92 1711 3233
Mining whose total outstanding November 2014 10.1 Dec, 2017 15 till the end of September as wide-
German competitor and spread crop losses due to flood-
18-Oct-17 3125.00 3125.00 3116.00 3121.00 96.78 31 267
via bond sales stands at `844.50 Source: Crisil/Markets
boasts its own fleet of mega ing in northern parts of the state 21-Aug-17 3088.00 3088.00 3058.00 3063.00 15711.00 51168 43807
crore, according to data from Any notch of downgrade leads ICICI declined to comment. 19-Sep-17 3100.00 3104.00 3084.00 3086.00 1240.58 4010 8786
ships, including one that Crisil and mutual fund analytics rise in yields by at least by 10-20 In its latest funding raising, have caused shortages in retail 18-Oct-17 3127.00 3130.00 3110.00 3112.00 51.84 166 647
can carry about 180 million firm Value Research. ICICI basis points. However, if the pa- Essel Mining mopped up about markets. GOLD-10GRMS (Lot-1 KGS)
05-Oct-17 28950.00 28970.00 28814.00 28831.00 147397.15 5104 6765
iPads. Bloomberg Prudential, the countrys top per is illiquid or cannot be easily `215 crore in January by selling Onion, which is an essential in- 05-Dec-17 29033.00 29033.00 28915.00 28926.00 2433.60 84 3026
fund house, has subscription of transacted in the secondary mar- two series of bonds within weeks gredient of Bengali cuisine, saw 05-Feb-18 29040.00 29040.00 29040.00 29040.00 29.04 1 306

`455 crore, showed the data up- ket in the absence of enough buy- interval, offering 7.83% and 7.9% prices shoot up to . 50 per kg in GOLDGUINEA-8GRMS (Lot-8 GRMS)
31-Aug-17 22992.00 22992.00 22906.00 22925.00 93.84 409 928
dated till July end. SBI MFs expo- ers and sellers, the yield rise is rates with upto three year and the last one week from . 30-35 per 29-Sep-17 23139.00 23140.00 22900.00 23036.00 23.95 104 156
sure is about `133 crore. notional, he said. But, if an in- four-month maturities. kg. Like Bengal, floods have also 31-Oct-17 23699.00 23699.00 23699.00 23699.00 0.24 1 3

Gold Prices Up Crisil has downgraded Essel

Minings non-convertible deben-
vestor wants to exit, the notional
yield becomes the actual price
While ICICI Prudential MF sub-
scribed the majority of bonds in a
hit the neighbouring state of Bi-
har but that has not pushed up
28978.00 28978.00 28756.00
29000.00 29000.00 28837.00
onion prices there as the state
ahead of Minutes
03-Nov-17 29015.00 29022.00 28884.00 28899.00 92.62 32 94
tures to AA- from AA and put the guidance, Manglunia one-on-one deal, SBI MF bought GOLDPETAL-1GRMS (Lot-1 GRMS)
company on rating watch list said. another set of papers worth `85 has its own production and is al- 31-Aug-17 2863.00 2873.00 2856.00 2857.00 103.83 3627 8502
so getting supplies from UP.
from Fed Meet with negative implications, Ashish Agarwal, exec- crore without the presence of 29-Sep-17 2898.00 2898.00 2880.00 2881.00 25.88 897 2597
meaning another downgrade is utive director at AK any investment banker, said a Prices of onion will remain 31-Oct-17 2893.00 2902.00 2893.00 2897.00 2.23 77 261
LEAD-1KGS (Lot-5 MT)
not ruled out, citing delay in the Capital Services, person aware of the matter. firm in the next one-and-a-half 31-Aug-17 150.25 154.90 150.25 154.65 69555.97 9061 3816
BENGALURU Gold months at least. Over the last few
resumption of mining opera- said, A downgrade If those funds sell their hold- 29-Sep-17 153.10 155.55 153.00 155.35 4479.92 581 551
prices firmed early on tions at Jilling iron ore mines. can also breach an ings today they would get months prices LEADMINI-1KGS (Lot-1 MT)
31-Aug-17 149.80 154.85 149.80 154.65 21398.46 13943 5924
Wednesday as the The delay is leading to lower investors investment 8-8.05% yield, said a market have not gone up 29-Sep-17 150.25 155.55 150.25 155.30 1967.93 1278 933
than expected mining volumes pattern prompting dealer who works closely with Onion, which because of our 31-Oct-17 154.00 154.40 154.00 154.20 3.08 2 3
dollar weakened is an essential own produc- MENTHAOIL-1KGS (Lot-360 KGS)
and hence lower than expected him to look for des- fund houses. 31-Aug-17 1168.00 1198.20 1168.00 1186.70 20463.65 4793 3467
slightly, with investors waiting for cash accruals, Crisil said in a perate exit route. ICICI SBI fund deployed ingredient of tion. Our own 29-Sep-17 1197.00 1209.60 1184.10 1202.40 4801.97 1113 2438
note last week. A cut in a compa- SBI and Essel Essel Mining securities in Bengali crop has now 31-Oct-17 1210.20 1220.20 1200.30 1209.30 640.77 147 332
the release of minutes from the US cuisine, saw NATURALGAS-1mmBtu (Lot-1250 mmBtu)
nys credit worthiness results in Mining did not reply dual advantage and treasury ad- come to an end, 28-Aug-17 188.10 188.10 186.00 187.50 25489.84 10899 6407
Federal Reserves last meeting in spike in bond yields, push- to ETs emails vantage funds. Crisil said the de- prices shoot Purnendu Ba- 26-Sep-17 190.00 190.60 188.80 190.20 1461.80 616 597
July for clues on the pace of potential ing prices down, experts seeking com- lay in resumption of mining op- up to . 50 per su, agriculture 26-Oct-17 195.50 195.60 194.30 194.80 73.21 30 97
said. The debt market ments. erations at Jilling iron ore mines kg in the last minister of
interest rate hikes. Spot gold was up one week
31-Aug-17 666.00 678.30 666.00 676.80 29426.37 17494 17675
turns apprehensive is leading to lower than expect- West Bengal, 29-Sep-17 672.00 682.90 672.00 680.90 971.30 574 3022
0.1% at $1,272.47 per ounce by 0048 following any down- ed mining vol- from . 30-35 told ET. We are 31-Oct-17 681.30 685.00 681.30 683.10 6.83 4 61
GMT, after falling for two straight grades, especially af- umes and per kg now trying to 31-Aug-17 669.20 678.10 666.20 676.50 10223.41 15194 8287
ter a raft of defaults in hence lower bring onions 29-Sep-17 672.50 682.80 672.30 681.60 564.22 833 1529
days. Dollar edged lower in Asian 31-Oct-17 678.60 686.00 678.60 681.70 2.05 3 41
the past one-two year than expected from Maharashtra. However, It PEPPER-100KGS (Lot-1 MT)
trading on Wednesday, but held most in credit space, said cash accruals will take some time. 20-Sep-17 48200.00 48250.00 47830.00 47910.00 239.97 50 110
of its gains made after US retail sales Ajay Manglunia, execu- for Essel Incessant rains over the past 18-Oct-17 48050.00 48200.00 48050.00 48145.00 19.26 4 55
tive vice-president at Mining. six days has inundated 3.75 lakh
data suggested the economy continued hectares of agricultural land in
31-Aug-17 540.00 541.70 540.00 540.90 27.05 5 8
Edelweiss Financial Services. SILVER-1KGS (Lot-30 KGS)
to gain momentum in third quarter. north Bengal. Another 15,000 05-Sep-17 38500.00 38501.00 38305.00 38354.00 112397.31 9759 14433
05-Dec-17 39040.00 39078.00 38875.00 38976.00 21861.93 1869 3299
hectares of vegetable farmland 05-Mar-18 39631.00 39631.00 39545.00 39587.00 83.13 7 40
is also submerged under water. SILVERM-1KGS (Lot-5 KGS)
31-Aug-17 39120.00 39120.00 38321.00 38370.00 24710.57 12863 13963
Traders said demand for Maha-
NCDEX MD Oil Edges up Dollar Holds London Zinc
30-Nov-17 39371.00 39371.00 38924.00 39006.00 2372.76 1216 2042
rashtra onions has picked up as 28-Feb-18 39715.00 39715.00 39539.00 39569.00 27.72 14 32
there was shortage in Karnataka ZINC-1KGS (Lot-5 MT)

Gets 6-month on Falling US Firm Before Hits Highest and Andhra, the other two main
onion producers, because of def-

Extension Crude Stocks Fed Minutes in a Decade icit rainfall there. Excess rainfall
in Rajasthan and Gujarat has re-
NEW DELHI Sebi LONDON Oil prices LONDON The dollar MELBOURNE duced supplies from there, con- 31-Oct-17 188.60 194.60 188.60 194.25 75.20 39 111
tributing to a jump in prices.
gave nod for exten- edged up, lifted by held on to big gains London zinc hit its Barring potato, most vegeta- MCX-COMDEX COPPER (RS/1KGS)
sion of Samir Shah's declining US crude on Wednesday highest in almost a bles have turned 10-15% costlier 3250 450
tenure as NCDEX inventories, al- before minutes of decade as Chinese in Bengal in past one week, forc- 3129.13
ing chief minister Mamata Ba- 3175 425
MD for six months even as though markets were still re- the US Federal Reserve's latest infrastructure demand that has nerjee to call a meeting of the
3100 400
advertisement has been issued strained by excess supply. Brent meeting, while European shares fed a rally in steel prices for agriculture task force on Au-
by the bourse for selection of a crude futures were at $51.14 per followed Asian stocks higher. months spills into markets for gust 22. Pradip Mazumdar, agri- 364.55
3025 375
culture advisor to Banerjee,
new candidate. Shah was ap- barrel at 1010 GMT, up 34 cents, Relative calm in the standoff steelmaking raw materials. LME said although onion production 2950 350
pointed in 2013 as per regu- or 0.66%, from their last close. between the United States and zinc peaked at $2,994 a tonne, in the state has risen to 5.5 lakh May 18 Aug 16
latory framework of erstwhile having cracked its November tonnes, it is still below demand.
WTI crude futures rose 27 cents, North Korea also lifted investors'
MCX prices as on 16 August 2017, 5PM IST Compiled by ETIG Database
FMC for three years till 2016. or 0.56%, at $47.82 a barrel. appetite for riskier assets. 2016 high.

Economy: Macro, Micro & More  13

Rainfall deficit NW, east & NE Large deficit Heavy rainfall Parts of NW Max temperatures
India have India to
of 56% received 3% in normal likely over over NW plains to
recorded over excess rainfall so rainfall was parts of south rise by 2-3
CURRENT scanty

Watch the country on

NW India received
far this season recorded
over 66%
area of the
peninsula over
next 3 days
rainfall over
next few
degrees Celsius
towards Friday

91% deficient Rainfall deficit of 4% country rainfall likely in parts Few parts of Central India
rainfall on recorded over the of east & NE India over to receive widespread
Wednesday country since June 1 next few days rainfall over next 3 days

Cabinet Okays CGST Refund Scheme Bid for 11 NHs to

Relief for units in HP, Ukhand, J&K and NE till 27; also approves new metro rail policy, changes to strategic divestment plan
ruction in 12 cities. The approval will help in speedy
Run, Transfer Toll
Our Bureau
Get, Set, Go New metro rail policy The policy mandates evaluation completion of strategic disinvest-

New Delhi: The government has

approved a new metro rail policy, a
scheme to refund central goods
Cabinet gave nod to a slew of decisions:
Scheme to refund
CGST in special states
High-powered panel for
strategic disinvestment
Private investment
must for metro rail
or some unbundled
of other modes of mass transit to
ensure selection of the least-cost
public transport model, he said.
ment deals, the statement said.
So far in this fiscal, the govern-
ment has raised `. 8,427 crore thro-
ugh disinvestment. It has set itself
Booths in Mid-Sept
and services tax (CGST) to indust- 58% of CGST to be Panel with FM Jaitley Creation of Urban STRATEGIC DIVESTMENT POLICY a target of `. 72,500 crore in the cur-
refunded to units in on board to take Metropolitan Transport
rial units in Himachal Pradesh, Ut- The cabinet committee on econo- rent financial year, of which
tarakhand, Jammu & Kashmir and J&K, NE & hilly states
Scheme to be valid
decisions on
key aspects
Authority must
mic affairs (CCEA) approved an al- `. 15,000 crore is to come through
Govt seeks to raise On A High
the northeast till 2027, and changes ternative mechanism for pursuing strategic sales. Jaitley said the `. 6,500 cr from 7 NHs
to strategic disinvestment policy
to speed up decision-making.
till Mar, 2027; Centre
to provide `27,423 cr
budgetary support
Core group of
secretaries empowered
to take policy decisions
the governments strategic sale
programme. Under this arrange-
Union cabinet was given a presen-
tation on the success of the just- in AP and 4 in Gujarat
11 No. of
NHs to
be put up
100 No. of
NHs govt
plans to
The cabinet cleared the CGST re- ment, Jaitley, roads minister Nitin concluded initial public offer of for auction lease out
fund scheme with a budgetary allo- Enhancing extra budgetary resources for irrigation fund Gadkari and minister of relevant Cochin Shipyard.
cation of . 27,413 crore, which will co-
me as a big relief to sectors like phar-
Nabard to raise `9,020 cr through bonds for irrigation fund
These bonds to ensure lending at 6% interest rate
administrative ministry will deci-
de on matters relating to terms and OTHER DECISIONS
7 No. of NHs
across Andhra
ma, automobiles, FMCG. These conditions of sale from the stage of The Union cabinet approved a pro- New Delhi: The road transport Pradesh
units, which hitherto enjoyed ex- inviting expressions of interest to posal for raising extra budgetary and highways ministry is set to `75,000 cr
emption from central excise for 10 ye-
ars, will get a refund of 58% of CGST.
The cabinet gave its nod to a new
rently, very few metro projects are
being undertaken with private
that of seeking financial bids.
The government plans to sell a
resources (EBR) of up to `. 9,020 cro-
re as needed in the current fiscal
invite bids for 11national highwa-
ys next month under its toll-ope-
4 No. of NHs
in Gujarat
Amt govt
aims to raise
as revenue
Within the framework of the metro rail policy that seeks to participation. 26% stake in BEML and a 51% stake year by (Nabard) through bonds to rate-transfer (TOT) model as it 700 km Total
from these
GST Act, each industry will be en- change the face of mass transit sy- Private participation either for in New Delhi-based helicopter ser- ensure a lending rate of 6% per ye- seeks to raise `. 6,500 crore, a top length of these
100 NHs
titled to its own refund mechanism stems in urban centres and makes complete provision of metro rail vice firm Pawan Hans. Lucknow- ar on borrowings through the Ac- government official said highways
during this particular period (un- private investment mandatory. or for some unbundled compo- based three-wheeler maker Scoo- celerated Irrigation Benefits Pro- The auction will involve seven
til March 31, 2027), finance mini- The new metro rail policy 2017 nents (like automatic fare collec- ters India will be the first full stra- gramme (AIBP) for 99 ongoing highways running across Andh-
ster Arun Jaitley told reporters af- will help a large number of cities to tion or operation and maintenance tegic sale with the government loo- prioritised irrigation projects. ra Pradesh and four in Gujarat.
ter the meeting of the cabinet that realise growing metro rail aspira- of services) will form an essential king to divest its entire holding. It approved the creation of a non- The total length of these highwa-
was presided over by Prime Mini- tions. The policy promotes Make in requirement for all metro rail pro- The government further empowe- lapsable pool in the public account ys is just under 700 km. rity of India (NHAI) is likely to
ster Narendra Modi on Wednesday. India in metro and make these pro- jects seeking central financial assi- red the core group of secretaries to for secondary and higher educa- The bidding will begin in mid- provide a risk cover to the lessee
Under the new GST regime rolled jects cost-effective, Jaitley said. stance, according to the policy take policy decisions with regard tion known as Madhyamik and September and we plan to wind for any unforeseen circumstan-
out on July 1, there is no provision Private investment has been ma- approved on Wednesday. to procedural issues and to consi- Uchchtar Shiksha Kosh (MUSK) up the process in a couple of ces such as a rapid fall in toll col-
for exemptions. Central or state go- de compulsory to meet the resour- Jaitley said 370 km of metro lines der deviations as necessary from ti- into which all proceeds of the se- months, the official told ET on lection and any structural or eng-
vernments, however, are empowe- ce demands for capital-intensive, were already operational in seven me to time for effective implemen- condary and higher education cess condition of anonymity. More ineering fault on the highway.
red to refund their portion of tax. high-capacity metro projects. Cur- cities and 537 km was under const- tation of the CCEAs decisions. will be credited. such projects would be lined up Road transport and highways
for bidding early next year. minister Nitin Gadkari told the
Under the TOT model, pension Lok Sabha earlier this month

CBEC to Build Information Repository on Imports

funds and PE firms are allowed to that international investors such
lease government-owned natio- as ADIA, GIC, Temasek, Hastings
nal highways for 30 years for an Funds Management, Keppel In-
upfront payment. The lessee, in frastructure Fund Management,
turn, gets the right to collect the Morgan Stanley Infra, Equirus
Single window to soon address global suppliers basic queries in a simple language toll, operate, manage and mainta- Capital and JP Morgan Asset Ma-
tral repository to provide a suppli- to traders. The difficulty in finding gramme has also allowed for risk- in the highway stretch. nagement were keen to invest in
Deepshikha.Sikarwar er all the information required the information is also seen to be based assessment at customs. The National Highways Autho- India under TOT model. about norms governing product hindering ease of doing business. India has adopted the National
imports in simple language. This This exercise is also part of the go- Action Plan for Trade Facilitation,
New Delhi: Can a specific type of will be available on one site or via a vernment's effort which aims to roll out steps to ma-
meat be exported to India? What
procedures need to be followed?
mobile app.
The idea is to make it simple for
at trade facilita-
ke it easier to do business.
India is ranked 133 in the World
Creating A New Asset Class
Effort would
It makes perfect sense to monetise toll
Global suppliers eyeing India's
growing economy will soon be able
traders to access information, a
government official told ET. Any
be to make
CBEC has already
launched a portal
Banks ease of doing business ran-
king on the trading across bor- VIEW collections upfront, and plough back funds
to get such basic queries on exports information about any regulation navigable & to allow importers ders parameter because of paper- for reinvestment in highway projects. In
answered through a single win- would be available at the click of information and exporters to fi- work taking too much time and parallel, we need to leverage IT to transparently and efficiently
dow, freeing them from the maze of mouse or a tap on the mobile. readily le a single form at high costs. Border compliance ta-
multiple complex notifications Though all the information is av- available to ports for clearan- kes 311 hours compared with nine boost toll payments in digital mode. Monetising infrastructure
scattered across various websites ailable, traders need to plough traders ces from all go- in high-income OECD countries. would amount to a new asset class for long-term investors like

of ministries or departments through various ministry and de- vernment agenci- Documentation compliance takes pension funds and sovereign wealth funds. It has the potential to
thats fiendishly difficult to access. partment websites to find it. es including the Drug Controller 67 hours versus four hours.
The Central Board of Excise and The official said the effort would General of India, Plant Quaranti- The government has identified shore up investment for infrastructure, and also provide at-
Customs (CBEC) is undertaking a be to make regulations navigable ne and the Food Safety and Stan- ease of doing business as a key fo- tractive returns with low attendant risks for investors.
mammoth exercise to build a cen- and information readily available dards Authority of India. This pro- cus area to attract investment.


Seek Pricing
Predictability & Cos Struggling to Adjust
Ease of Doing Biz
Our Bureau
Past Credits against GST
New Delhi: Entrepreneurs and
Confusion due to glitch
startup founders pitched for conti-
nuity and predictability of pricing in tax form persists as VIEW
as well as ease of doing business,
saying these were essential for filing deadline nears
growth and job creation.
Over 212 entrepreneurs and star-
Clear the Air
tup founders from the financial, The GST Council should clear the
education and health sectors brain-
air to avoid disputes. The purpo-
stormed on Wednesday to chart out
a plan for New India that will be pre- Mumbai: A top conglomerate may have se of GST is to provide set offs
sented to PM Narendra Modi on to shell out a bit extra in advance tax this across the production and value
Thursday. These were among the quarter due to an unusual glitch in the chain to avoid tax on tax and
key issues pressed by them, accord- tax returns form. Another Delhi-based
ing to a Niti Aayog tweet. firm, which does not want to bear any ex- cascading tax rates for goods
The PM joined the gathering for an tra tax, may simply deduct the dues be- and services. Rightly, the comp-
informal interaction over dinner. fore the GST kicked in on July 1and pay a liance regime was easy to start
The two-day Champions of smaller net amount.
with. A true picture on how well
Change programme under Niti The absence of a column in the new
Aayogs aegis brought together GST form for claiming credit on sales GST is working would be known
young entrepreneurs selected from made before July 1 this year is causing a when companies start getting
six sectors to seek ways of promot- lot of worries for India Inc as the filing refunds on the taxes paid by
ing inclusive growth deadline for the first month of tax re-
and development in turns under GST comes up this week. them. So, procedural lapses, if
India. Many companies dont know whether any, must be corrected to remo-
The entrepreneurs the government will rectify this problem ve any confusion for companies.
interacted with min- by Friday, the deadline for filing returns,
isters and top offi- and are following different options for re-
Over 212 cials including sec- solving the quandary. er. There is no column in GSTR 3B form
entrepre- retaries from vari- Multinationals and some of Indias big- where companies can mention the ad-
neurs & ous ministries and gest companies are not taking into ac- vance taxes paid before July 1. The gov-
startup departments on var- count past input credit while paying GST ernment had said last week that it would
founders while smaller companies that cant af- sort out the issue, but with just four days
ious issues concern-
ing their sectors and ford to let their working capital rise are left for filing the GSTR 3B form compa-
to chart out a
plan for New challenges facing paying the tax after deducting the input nies are not waiting for clarification.
India the country. tax credit. A procedural lapse by the gov- Companies are puzzled by what they
The system is to- ernment doesn't take away companies should be doing and why they could be re-
day geared to drive change. Deci- right to whats prescribed in the law. GST quired to fork out large sums as GST in
sion-making too has become far law prescribes that companies can ad- July and August and the apparent inabil-
more efficient, finance minister just past credits with July and August ity of the government to simply permit
Arun Jaitley told the gathering, ac- liabilities, said the CFO of a New Delhi- the utilisation of the opening credit
cording to a Niti Aayog tweet. based company. while computing the tax liability for July
Niti Aayog vice-chairman Arvind Industry trackers, however, say that do- and August, said a tax expert advising
Panagariya said entrepreneurs ing so may be technically incorrect. four of the biggest Indian companies.
need to focus on job creation, mov- Certain businesses may prefer being Back of envelope calculations by two tax
ing away from capital-intensive or cautious and pay the tax for July and Au- consultants show Indian companies may
high-skill jobs. gust without considering the opening end up paying anywhere around . 13,000
It is encouraging to see that our credit balance, while other businesses crore more to government for July and
Prime Minister and the govern- would adjust the credit and pay the tax, August. If this happens, working capital
ment has invited opinions from leading to disparities in tax treatment costs are likely to rise across the board.
change agents such as new-age en- from the first GST return, said MS Ma-
trepreneurs in solving key prob- ni, partner, Deloitte Haskins & Sells.
lems we face, said Vijay Shekhar The deadline for filing the GST Transi-
Sharma, founder of Paytm. I am tion Credit Form, titled GST-Tran 1, is
confident that this initiative will re- September 28, while that of making pay-
sult in some concrete solutions, and ments for July and August is much earli-
also prove to be an enabler to thou-
sands of budding startups."
Mukesh Bansal of Curefit and
Tushar Vashisth of Healthifyme CFO OF A NEW DELHI-BASED CO
were also part of the group.
IT minister Ravi Shankar Prasad, Aprocedural lapse by the
HRD minister Prakash Javdekar,
rural development minister Naren- govt doesn't take away
dra Tomar and minister of state for
commerce and industry Nirmala cos right to whats
Sitharaman also interacted with
the participants. prescribed in the law

14  Companies: Pursuit of Profit THE ECONOMIC TIMES | BENGALURU | THURSDAY | 17 AUGUST 2017

Venkat Narayana
Appointed Prestige
No Country for Uniform Gain in Dairy Products Post GST
Switch to GST from varying VAT at different regions of the country makes ghee a mixed bag for dairy cos
Groups CEO Ashish.Kulshrestha
hern dairies suffer an additional
tax burden of some 7%.
business as sales have been impac-
ted despite partial passing on the
ring the festive season to counter
any impact of increase in taxation
dustry is expected to be neutral to
positive in general, says Shiva
Churning Prices Ghee - Largest dairy commodity
According to industry represen- price burden while also taking a hit on ghee and other value-added pro- Mudgil, senior analyst, Rabo- tatives and analysts, ghee is the se- on our margins. And we expect this ducts, said Devendra Shah, chair- bank, adding that GST would furt- Nearly a third of annual ghee
Hyderabad: Indian dairies are cond-largest commodity product impact to continue during the up- man and managing director of her push formalisation of the sec- sales are reported during festive
Bengaluru: Bengalu- staring at a mixed business during with a 15% share in the diary sector coming festive se- Mumbai-based Parag Milk Foods. tor at the expense of informal season in India
ru-headquartered re- the upcoming festive season follo- after liquid milk, which accounts ason. Dairies in the South like Herita- cash-dominated business chan- INDIA SHARE
Changed tax
al estate firm Prestige wing the rollout of the uniform for a 65% share. Further, nearly a Some analysts ge Foods and Hatsun Agro expect nels, benefiting the organised seg-
Estate Projects has Goods and Services Tax (GST) third of the annual ghee sales is re- burden
said dairies in the the impact to be either neutral or ment. This will also impact the Ghee 15%
scenario post
promoted Venkat K across the country, which now ma- ported during the festive season. North, which are marginally positive. RG Chandra- B2B trade business model of dairy Milk 65%
GST compelled
Narayana (in pic) as kes certain products relatively ex- The changed scenario post GST rol- mainly into com- mogan, CMD, Hatsun Agro, said: commodity companies which reli-
some dairies to
the chief executive of- pensive in the North and cheaper lout has compelled some dairies to modities or B2B We are expecting a neutral im- es on cash transactions e.g. for VAT ON GHEE EARLIER
ficer of the company. in the South. resort to increasing selling prices segment, are lik- pact of GST on ghee sales as there ghee. B2C branded ghee segment
Narayana was earlier the executive di- Ghee, which is a major product of ghee to cover up increased taxes, selling prices
ely to face the will be a slight reduction in taxes, may see slight retail price increa- 5% 14.5%
of ghee to North South
rector finance and chief financial of- sold during festivities, had attrac- others decided to prune down their pressure on mar- coupled with lower milk prices se for products like ghee in North
cover up
ficer. He has been involved in the com- ted a 5% value-added tax (VAT) ear- marketing budgets during festive gins owing to in- during the festive season due to India due to GST. At present, In-
increased POST GST
panies operations and growth and has lier in the North as against a 14.5% season. Kuldeep Saluja, MD of Ster- creased tax on higher production. dia is the worlds largest producer
taxes 12% - Tax on ghee across the country
pioneered several strategic initiatives VAT charged in the South. Post ling Agro, which sells dairy pro- ghee. Also, there M Sambasiva Rao, the president of milk, accounting for nearly a
to success. He was instrumental in the GST rollout, ghee now attracts 12% ducts under the Nova brand in the will be a slight impact on the retail of Hyderabad-based Heritage Fo- fifth of global milk production, fol- 07% - Additional tax burden on
listing of shares of the company on In- tax uniformly across the country, Northern markets, said: The in- side as well with moderate price in- ods, echoed similar views on the lowed by the US, China, Pakistan dairies in North
dian bourses and for entering into seve- making Southern dairies gain crease of 7% in taxes on ghee due to creases. We will be reducing our positive impact of GST rollout. and Brazil, says a report by broke- 2.5% - Marginal fall in tax in South
ral strategic joint ventures. marginally up to 2.5% and Nort- GST has been a big setback to the marketing budget accordingly du- Impact of GST on the dairy in- rage firm Antique.
Irfan Razack, CMD of Prestige Group

Housing Inventory Drops to

said: Venkat is associated with the gro-

Jio Pipped Top

up for over 14 years and has been wor-
king very closely with me as a CFO. His
transactional expertise in the real esta-
te industry has greatly benefitted our

10-quarter Low on DeMo, Rera 3 Telcos in June

company and he has a strong track re-
cord of executing corporate strategy
and driving operational efficiency. I am
confident that he will provide the lea-
dership and drive that is needed to take
the company through the next phase of
growth and deliver value to all stake- approvals. Developers now pre-
holders. I wish him the very best for his Kailash Babar & Sobia Khan fer launching projects in phases, JIOS REACH
new assignment. Further, VVBS Sar-
ma, who is associated with the group Mumbai | Bengaluru: In the
Housing Realty In 2008, it was the global
financial crisis that in step with approvals. Apart
from Rera, multiple factors have Kolkata: Reliance Jio Infocomm Citi Research said Jios
caused developers to
for over 2 decades, has been appointed
as chief financial officer in place of Na-
backdrop of demonetisation and
implementation of the Real Esta-
curtail supply due to impacted permissions, inclu-
ding dumping ground, naval
added as many as 4.3 million acti-
ve subscribers in June, stealing a
proportion of active
reduced demand
rayana. He will now oversee accounts,
audit andother statutory compliance
te (Regulation and Development)
Act, 2016, residential real estate 20,000 At present, builders
land, height restrictions and co-
astal regulatory zone issues, sa-
march over the three biggest in-
cumbent telecom operators
subscribers remained
related functions of the company. is finally tuning itself to end-
user driven demand than pure
ended June
themselves are bringing
down the inventory
id Subodh Runwal, director,
Runwal Group.
Bharti Airtel, Vodafone India
and Idea Cellular, whose combi-
higher in category B
investment. The second quarter overhang by reducing However, Runwal said that the ned numbers during the month and C circles than the
Spices Board Looks of 2017 marked a record low for 26,000 new units launches scenario is proving out to be posi- stood at a modest 1.3 million, said
units launched across India, Q1 Indian realty markets are
tive for absorption as indicated analysts.
The active subscriber net adds
metros or A circles
while sales continued to outdo by over 100 apartments sold by
to get GI Status for new units being built in a quar-
2017 maturing with the evolv-
ing supply-demand reali-
the company in its freedom offer of top three operators slowed gain was a modest 3 bps in active
ter for the sixth consecutive qu- launch at three projects in north down to 1.3 million in June com- subscriber market share in June,
Kashmir Saffron arter. This has resulted in the qu-
ties and the improved
policy framework
Mumbai over the last 10 days. pared to their 5.1 million net adds while Vodafone India and Idea
arter witnessing the countrys Inventory levels are expected to average in the past six months, lost 9 bps and 2 bps on this metric
residential inventory overhang This bodes well for the come down further as developers ICICI Securities said, analysing respectively.
Our Bureau dipping to a 10-quarter low, sho- rush to register projects under subscriber data for June put out Brokerage Citi Research said
industry, especially for
wed data from Anarock Property homebuyers Rera in states that have imple- by the Telecom Regulatory Aut- Jios proportion of active sub-
Kochi: The Spices Board has teamed up Consultants. mented it. hority of India (Trai). Jios 4.3 scribers remained higher in ca-
with the Jammu & Kashmir govern- Over 20,000 new units were Developers operating in states million active subscriber addi- tegory B and C circles than the
ment to secure geographical indication launched across Indias top se-
ANUJ PURI which have not yet finalised the- tions, according to visitor loca- metros or A circles.
Chairman, Anarock Property Consultants
(GI) status for Kashmir saffron and to ven cities during the quarter en- ir Rera rules continue to await tion register (VLR) data in June, Analysts at ICICI Securities
make efforts to boost its output and va-
lue addition.
ded June, while the correspon-
ding number was slightly higher
As a result of the changing market dynamics further clarity, experts said.
Even at Prestige Group we have
was well below the 8.7 million ac-
tive customer adds clocked in
backed Citis view, saying Jios
active user base in crucial met-
India is one of the major producers of
premium and finest quality saffron in
at over 26,000 units in the first qu-
arter of 2017. With the traditio-
and business models, developers have been held ourselves back. Till the law
becomes operational, till we un-
May, indicating a slowing, which
the company previously attribu-
ros and Category A circles was
only 67.9% and 75% of its total
the world. Iran is the largest producer,
followed by Spain. Indias saffron pro-
nal cash flows previously seen in
a residential projects lifecycle
going slow on new project launches compared derstand whats happening, and
once we get all the approvals,
ted to the limited 4G devices in
the market. The VLR is a key met-
subscribers respectively.
Jios active subscribers in Del-
duction is around 10 tonnes. It is cur-
rently the costliest spice fetching aro-
not working out under the cur- to previous years then register with Rera and go ric reflecting the actual number
of subscribers actively using mo-
hi, Mumbai and Andhra Pra-
rent policy framework, develo- ahead (with the launches). We desh, it said, accounted for 67%,
und `. 3 lakh a kg The Codex Committee pers have now changed their bu- nue as the industry gears up for with the number of unsold resi- will start with a clean slate bo- bile services on a network. 68% and 75% of its total custo-
on Spices and Culinary Herbs has initi- siness models altogether. As a re- further consolidation, and more dential units falling to around 4.2 ard, said Irfan Razack, CMD, The companys active subscri- mers in these markets respecti-
ated the development of Codex stan- sult of the changing market dy- clarity on Rera implementation lakh after 30 months. The last ti- Prestige Group. ber base grew to 93 million in Ju- vely. Its share of active subscri-
dard for saffron at its 3rd session held in namics and business models, across states emerges. Accor- me Indias inventory overhang So I believe, give it a quarter, ne, helping the Mukesh Ambani- bers in Maharashtra circle, ho-
Chennai in February 2017, Spices Bo- developers have been going slow ding to Puri, the market is seeing was close to this figure was in the let this quarter July to Septem- run telco steadily increase its ac- wever, was higher at 85%.
ard chairman A Jayathilak said. The on new project launches compa- clear evidence that players are fourth quarter of 2014, when it ber go by. From beginning of Oc- tive subscriber market share by Not surprisingly, VLR data col-
saffron trade would get a fillip by add- red to previous years, said Anuj now adapting themselves to an was slightly above 4 lakh. tober things will be very diffe- 40 basis points (0.4 percentage po- lated by Trai showed that about
ressing the issue of post-harvest mana- Puri, chairman - Anarock Pro- end-user driven demand reality. All pre-launches have stopped rent. There will be lot more clari- ints) to 9.1% from 8.7% in May. 76% of Jios users are active sub-
gement to retain the colour, aroma and perty Consultants. A corresponding fall in unsold and now the projects are being ty, lot more stability, and more po- By contrast, market leader scribers, compared to 97% for the
flavour of the spice, he added. This trend is expected to conti- inventory was also recorded launched only after securing sitivity than negativity. Bharti Airtels month-on-month three biggest incumbent telcos.

Economy: Macro, Micro & More  15

CERT-In Sets August 28 Deadline Valued at about `. 2,800 cr

standards need to be tightened or ut 54% of the Indian smartphone software, it could impact business. driver would not be at the wheel
From Page 1 made mandatory. market has been cornered by Chi- Vendors may need to roll out qu- From Page 1 for more than 4.5 hours. At desig-
Handset makers did not individu- The government officials didnt nese companies including Xiaomi, ick security updates to ensure devi- It has raised more than $100 mil- nated points, he would hand over
ally comment on the development directly link the government move Lenovo, Oppo and Vivo, and several ces remain suitable to use. lion in equity and debt financing the truck to another driver and
as most said they hadnt received to Indias latest border tensions others like Comio and Voto are ma- In an August 14 letter, the govern- from the likes of global private steer a different vehicle back to
the notice. Sources at most compa- with China, but industry insiders king their way to the fastest-gro- ments Indian Computer Emergen- equity major Warburg Pincus where he came from. This model
nies including Apple and Samsung noted the move comes amid conti- wing smartphone market in the cy Response Team (CERT-In) gave and stage-agnostic investment allows truck drivers, who are ty-
said they wont have a problem sha- nuing standoff between the two na- world. As per a re- the companies until August 28 to firm SAIF Partners. pically on the road for days and
ring how privacy is protected. tions armies at Dokalam. This, be- cent Confedera- provide the information. This has The company was valued at abo- weeks, to go back home every day.
Theres a need to ensure safety sides rising concern over imports An official tion of Indian In- to cover the handset, the operating ut `. 2,800 crore, or $440 million, Rivigo scaled up to 2,100 trucks in
and security of mobile phones or of IT and telecom products from said that dustry study, Chi- system, browser on the device and when it closed its previous fun- March with more than 4,000 dri-
smartphone... that hold valuable in- the neighbouring country on the testing and nese investment in pre-loaded apps. ding round in November. vers.
formation of users as they use the grounds that much of it may be verification the electronics and The official said that testing and It is unclear whether SoftBank According to the company, it was
phone to make digital payments used to gain unlawful access to cri- of devices information tech- verification of devices will be con- will invest in Rivigo from its ba- the largest buyer of trucks in 2015
and have personal data, the mini- tical information with many Chi- will be nology products ducted in India and the govern- lance sheet or its much-vaunted and 2016, having raised debt finan-
stry official said. Cases of contact nese manufacturers having their conducted in sector is worth ne- ment was upgrading its existing la- $100-billion technology-focused by trucks smoother. ce of about `. 400 crore from len-
lists and text messages being leaked servers in their home country. India arly $22 billion. boratory facilities for this, adding Vision Fund. Even traditional logistics com- ders including Kotak Mahindra
have surfaced internationally and Parts of India have also witnessed A crackdown co- that media reports about data leaks Rivigo, founded by McKinsey panies are poised to benefit from Bank, HDFC Bank, YES Bank and
locally, while there were concerns anti-China protests, with some cal- uld seriously dampen the prospect led to the move, without naming alumni Garg and Gazal Kalra in the rollout of GST. And Rivigo, gi- ICICI Bank.
about data on remote servers. A ling for boycott of Chinese pro- of Chinese smartphone players specific instances or companies. 2014, is not only the largest buyer ven its strong focus on tech, is se- The market for logistics-techno-
number of companies selling pho- ducts including smartphones. that heavily skin (read change in- The official said smartphones pla- of trucks in India but has also en more as a solutions provider logy businesses, which includes
nes in India are Chinese and most of For the financial year ended ternally from the base upwards) yed a vital role in the governments launched a slew of technology rather than as just a service provi- delivery startups, truck aggrega-
their servers are not in India. March, mobile phones worth about Android to differentiate, said Rus- Digital India programme, having products over the past year. The der, said Sanjeev Krishan, lea- tors and warehousing firms, is ex-
Another official added that since $3.74 billion (.`23,754 crore) were habh Doshi, an analyst at Singapo- achieved 65-75% penetration and company is also benefitting from der-private equity and transac- pected to surge to $9.6 billion by
the security issue is not addressed imported into India as per govern- re-based Canalys said. that people place their trust in the the rollout in July of the goods tion services, PwC India. 2020 from $1.4 billion in 2015, ac-
in the existing voluntary stan- ment data, while phones worth Rs He added that if the government convenience and productivity offe- and services tax that got rid of sta- Rivigo introduced the relay mo- cording to a report by investment
dards, the government will know if 90,000 crore were made locally. Abo- plans swift action on unsuitable red by these devices. te levies, making transportation del to the trucking sector so that a bank Avendus Capital.


Season for gifts

markers too can look ele- room to some relaxing times in the of-
gantly appealing placed fice.
next to a classic tome An ancient Domino game in a beauti-
with titles written ful brass-legged wood box can add
in gold. Since more moments from history.
ivory is not en- An executive wood golf set makes the
couraged, best reward for recognition. These nifty,
page mark- portable golf putting sets come in a rich
ers in san- rose wood casing with a brass handle and
WITH THE FESTIVAL SEASON UPON US, HERE ARE SOME COOL IDEAS TO STRENGTHEN BONDS dalwood have a collapsible putter and golf balls.
with an- Pair this with a sleek miniature golf bar set
cient en- in a leather golf bag complete with bottle Elegant stationery complete with a ered from across the world, or of gravings opener, ice hammer, stirrers and so on, in

Getty Images
custom writing surface can offer the mother-of-pearl, look stylish on can be won- the shape of golf clubs.
orporate gifting is a culture that best in smooth, comfortable writing. an executive table. These globes derful sub- Desk games can keep stress away

C has stood the test of time, unlike

the ups and troughs of the busi-
ness world. As the festival season
What better way to say 'thank you' than
through a personal signature embossed
on the writing instru-
aptly dress up an office cabin with
an old-world charm and a little bit
of history. These elegant globes
stitutes. and have the boss in good spirits. Puz-
zles are great ways to de-stress before
a crucial corporate meet.
makes its presence felt, here are some ments? come in several different display Bespoke accessories add a distinct Gifting is an art and the right corpo-
cool ideas to get that all-important Miniature options from hanging and desk touch of class to your gifting repertoire. rate gifts can reinforce a
stamp of approval on a job globes made stand to a Renaissance model. business commitment.

Getty Images
well done. from gem- And what's an old writing table HELP THEM BEAT STRESS
stones gath- without a traditional dip ink pen? Ele- A silver-plated mini roulette game

SIGNATURE gantly carved dip ink pens in sterling engraved with your compa-
Getty Imag

COLLECTIONS silver inlaid with gems and sporting ny logo or a person-

A top executive deserves large feathers at the top can be ab- al inscription is
nothing less than desk- solutely alluring. Nibs can be disman- sure to enter-
top accessories in hand- tled and come in various sizes and in- tain your
finished hardwood. From scriptions. A sterling silver ink well filled corporate
desk pads, paper trays, book ges with real ink can look classic. associate. A
or binder racks and wastepaper G Ornamental letter-openers in copper chess board
baskets to pencil cups, card files or silver can either be stand-alone in fine quality
and floor mats, the warmth of hard- pieces or complementary to the silver-plated
wood provides lasting luxury. other stationery items. Page finish can give


Slash IUC, Licence At last, India gets genuinely serious about companies flouting mining and environment laws

and Spectrum Fees

Ease the tax burden on the telecom sector
The telecom regulators proposal to bring down the Inter-
Behold the Law of the Land companies violating green laws app- cars in the city on alternate days, but
licable to the sector. In doing this, GoI had no problems with smoky and no-
connect Usage Charge (IUC) promises to both increase showed its determination to resist isy diesel generators or smoke-spew-
bad blood in the telecom sector and worsen its finances.
The government must intervene to protect the consumer
strong pressures.
Conventionally, mining was deem-
ing, overloaded trucks.
Then there was the ban on 10-year- Love Unites
All of Us
ed illegal only if ores were extracted old diesel cars, which were sold in full
and the sectors viability. IUC is the charge that an opera- without a mining lease. Under the mi- compliance of the prevailing emis-
tor, in whose network a call originates, pays the operator ning law, the penalty was equal to the sion norms and a declaration to cus-
entire output from such an operation. tomers that these cars will be legally
in whose network the call terminates, for the service of Himangshu Watts However, once the lease was obtain- allowed for 15 years. It didnt matter
receiving the call from the originating network and car-

ed, even if the mining operation rava- to the authorities that a newer car Today, even young children
rying it on to the called party. As compared to the old 2G he landmark judgement of ged forests, made the air unbreathab- that is not properly maintained will seem to be in a hurry. The
days, the network usage per call is lower now when calls the Supreme Court impos- le and degraded the environment to pollute the air much more. Or that extended families of the past
ing penalties of an estimat- make thousands of crores, the penal- the actual emission is more impor- are like a dream today. We live
are converted into discrete packets that are sent over the ed . 25,000 crore on illegal ty under the environment law was a tant than the age. in world that believes, Money
network interspersed with packets of other calls and as- mining merits serious rea- laughable . 50,000. This built a very The problem with such steps is is everything. Without money,
sorted data. This is the rationale for trimming IUC. ding by the entire corporate sector, strong business case to start mining that it creates mass public ill-will tow- life is a big zero! People every-
and not just by those who extract mi- without waiting for green clearances. ards the noble cause of environmen- where are rushing to make
However, the cost of the network has gone up because neral wealth. The government argued before the tal protection simply because some money. This mania for money
of higher spectrum costs. A lower IUC would lower the Two aspects of the verdict stand Supreme Court in January that ex- authority has caused severe hardsh- making is the reason behind
cost of a call for the consumer, who, ultimately, bears the out. First, the verdict takes environ- tracting minerals without the neces- ip with steps that scientists know wo- the disappearance of extended
mental law enforcement by the Centre sary green clearance should be deem- uldnt clean the air. Such orders actu- families and the love and unity
cost of the call. However, it would lower revenue for tel- and the highest judicial authority to ed illegal not just under the environ- ally damage the environment becau- that were integral to such fam-
cos. Now, for large networks such as Bharti and Vodafo- a new high, which is a very strong de- mental law but also under the mining se they make it difficult for political ilies. Without doubt, money is

ne, what one pays the other as IUC gets terrent against such practices in the law that imposes back-breaking pen- authorities to protect the environ- necessary, but it shouldnt be-
future. This strong message will pro- alties for default. The Supreme Court ment when the common man thinks come the central point of life.
more or less offset by what it receives tect the environment and clean up the has upheld this view. he is being short-changed. Love must always remain the
from it as IUC, since they have rough- poisonous air in cities more effective- This time, we just may be really saved central point of life. This
ly than some outrageous, controver- Its Mine, Not Yours Green and Bear It change is especially necessary
ly the same number of subscribers.
sial and ill-conceived steps taken by This means that even if you have a stating the work done and audited ac- In contrast, the Supreme Courts la- in todays harried world.
Smaller networks pay out more as IUC various authorities in recent years. mining lease, any extraction with- counts of the SPV. test verdict on mining, and GoIs sub- In the old days, there used to
to larger networks than what they re- Second, the court has ordered hea- out forest and environment clearan- For those who think they can ma- mission early this year, is a concrete be joint families in which 10-12
ceive as IUC. Apart from the decline in vy expenditure for the welfare of tri- ce is illegal and the state must recov- ke millions without caring for the en- step that will help the environment, families lived together. There
bal people in affected areas. This re- er the value of the entire output from vironment, the court did not mince even as some mining companies ha- would be 50 or even more
network usage due to packetisation of inforces the GoIs declared strategy the defaulter. words. It delivered the message in the ve genuine grievances. members in such families. If
calls, two factors favour lower IUC. One, voice accounts of targeting and extracting ill-gotten Further, the court has ordered first paragraph of the judgement, The mining industry fears the ver- something bad happened to
wealth to help the poor, whether by that the hefty penalty must be used Lessees in Odisha have rapaciou- dict will disrupt business and that any one of them, all the others
for an ever-declining share of telecom revenue globally
demonetisation of high-value curre- very transparently for the develop- sly mined iron ore and manganese some mines may shut down. There would help, without thinking
and net IUC receipts form a tiny fraction of this dwind- ncy notes, or with the goods and ser- ment of tribal areas where the mines ore, apparently destroyed the envi- are some legitimate grouses. It takes about whether the person was
ling part of the business. Two, high IUC is anti-competiti- vices tax (GST). are located. It has ordered that the ronment and forests and perhaps ages to get environmental clearan- ones younger brother, broth-
A crucial aspect of the court case very large amounts that will flow caused untold misery to the tribals ces. Often, land is not available for er-in-law, sister-in-law or aunt.
ve, favouring incumbents against new entrants.
that needs to be highlighted is the to Odisha after the verdict must be in the area. Some steps taken to help compensatory afforestation. At tim- The hearts of all members
Telecom finances in the country have turned parlous fact that the mines ministry, after Pi- kept in a special purpose vehicle the local people, the court said, seem- es, clearances are not renewed even would beat for each member of
with the aggressive entry of Reliance Jio and the govern- yush Goyal took charge of its affairs, (SPV). To ensure that the funds are ed not more than a drop in the ocean if there is no change in mining ope- the family. The eyes of all
dramatically changed the relatively used for the benefits of tribal people also too little, too late. rations or output. would see and shed tears for
ments insistence on high spectrum fees, extracted by The stern words from the highest
lenient position that the previous go- in affected areas, it has asked the sta- Legitimate concerns must be add- everyone. The ears of each
auctioning tiny chunks of spectrum. To prevent telco lo- vernment had taken in the matter of tes chief secretary to file an affidavit judicial authority in the country are ressed. But for the crooks who ra- would listen to everyone. And
ans from adding to the banks growing mountain of bad a breath of fresh air in the otherwise vage the environment, the message the hands of each person
polluted approach toward green is- from the Supreme Court and the go- would labour for all.
debt, the government must intervene. It can lower the sues some authorities have demonst- vernment is clear: if abiding by the You asked if expansive love is
steep revenue shares it collects as licence and spectrum Even if you have a mining lease, extraction without rated in recent years. law means shutting down your busi- practical. One would have to
usage fees, still pegged at the high rates set when spec- forest and environment clearance is illegal and the On top of the hall of shame is the ness, so be it. concede that this is not possib-
Delhi governments ill-conceived odd- le for everyone. Let us first lea-
trum was allotted along with the licence without separa- state must recover outputs value from the defaulter even scheme that banned half the rn to regard with love our own
te upfront payment. parents, relatives and friends,
the beggar who comes for alms
to our doorstep, and our own
county and its samskara
PERSONAL BANKRUPTCY CODE (cultural values). If we can do

Bad Politics Behind so sincerely, expansiveness

will arise of its own accord.

Endless Project Delays Relieve People, Not Just Firms Chat Room
In his Independence Day speech, Prime Minister Narendra ween 1860 and 1898 got protection. legal infrastructure helps in speedy
Modi cited the example of a railway line between Howrah and Its also a reflection that the judicial
system was sensitive in the early
resolution. That will be a challenge
in India. Since, under the code, a debt Communalism
Champdanga in Bengal. It was decided in 1975 to put in broad-
gauge tracks in this 74-km stretch. Part of the project was
colonial period.
Later, two laws were enacted: the
recovery tribunal (DRT) will need to
pass orders be it for a fresh start
Hits Growth
completed the rest has been stuck for 42 years. Modi said his Presidency Towns Insolvency Act, or restructuring of the loan, after an Apropos the Edit, The Right
monthly reviews of projects have speeded up investment, 1909 (for the three presidencies of insolvency professional does all the Notes From the Red Fort (Aug
Hema Ramakrishnan Madras, Calcutta and Bombay), and necessary spadework. 16), PM Narendra Modi deliv-
completion and commissioning of new projects. It is welcome the Provincial Insolvency Act, 1920 Now, DRTs deal only with cases of ered an emphatic speech on
that some projects are getting completed in this fashion. Mere (for all other areas). But they were loan recovery of banks and financi- the gains from demonetisati-
monitoring will not, however, help others get built. Many Indians are vulnerable to fin- seldom put to test due to delays in al institutions, while the insolvency on, electrification and on Ka-
Delays in executing projects do not really highlight the failu- ancial distress. The proportion of clearance of cases in the courts. jurisdiction extends to all creditors. shmir, but he stopped short of
people below the poverty line, esti- Indisputably, reform in personal Its infrastructure is woefully inade- strongly denouncing the rig-
re of Indians to strategically plan, manage and execute new mated at 21.9% in 2011-12, are at great- bankruptcy laws is long overdue. In quate to handle the extra load. There ht-wing elements in his party.
projects. What it does underline, however, is the trait of over- er risk. Rightly, the bankruptcy code, 2009, the Raghuram Rajan panel on are only 38 DRTs and five debt Reco- Communal tensions needs to

ambitious politicians to allocate projects meant to resolve corporate distress, financial sector reforms recommen- very Appellate Tribunals in India. be brought down if gains of
to suit particular constituencies, with also provides the legal framework ded a framework within which deb- A debtor living in a remote part of growth are not to be frittered
for individuals and partnerships to ts can be renegotiated if excessively a state will have to travel to the state away. Nobody doubts the PMs
scant regard about whether it is possible swiftly restructure their debts. onerous, without making it too easy No flight of fancy capital and the DRT will have to com- intentions, and deliverance on
to execute them all in time. An over-sup- Offering relief, not booking debtors, for debtors to escape obligations. plete the process within the rigid promises will be a major fact-
ply of announcements tends to spread re- has been the primary objective of the Such a framework should recognise to . 35,000. This is similar to the US timelines. Unless an adequate num- or in evaluating his govern-
earliest insolvency legislation, says that many debt claims may be from bankruptcy code that offers a debt ber of DRTs are set up with support ments performance. Hopeful-
sources like capital, manpower and ma-
economic historian Asiya Siddiqi in informal sources, that the most in- waiver for those with incomes below staff and infrastructure, the objecti- ly, the short-term disruption
nagerial skills too thin on the ground for her book, Bombays People, 1860-98: debted may be very poor and need the median. The idea is to free an in- ve of the insolvency and bankruptcy from demonetisation will be
any one project. Delay follows. The soluti- Insolvents in the City. Barring indi- financial advice as much as debt dividual from her previous chain of code may not be achieved. offset by tangible gains soon.
on is for politicians to refrain from throwing confetti-showers viduals who misuse the loopholes in rescheduling. debts, giving her a chance to start DRTs must also have more powers to
financial laws, those with genuine Six years later, the Bankruptcy Law earning again, and safeguard her recover dues. More benches need to ASHOK GOSWAMI
of projects, which are much more than the capacity of the pub-
difficulties need some leeway to re- Reforms Committee drafted the new fundamental dignity. be set up, remuneration of members Chennai
lic or private sector to execute, to impress voters. organise their loans. Resolution, in code that will replace the two old laws But the code cannot resolve the root of DRTs raised and recovery officers
Data from the Centre for Monitoring the Indian Economy
(CMIE) shows that the value of projects completed every quar-
turn, hinges on support through a
robust legal system.
for personal bankruptcy. But the rul-
es are yet to be framed. Unlike com-
cause of financial distress. GoI must
fix structural problems in, say, agri-
trained. The number of appeals aga-
inst DRT rulings can be limited by Be Patient With
ter peaked in March 2016, five quarters ago. It has been falling,
Would it be prudent, then, to enfor-
ce the code for personal bankruptcy
panies, straightjacket rules to deal
with personal bankruptcy may not
culture to ensure that incomes of far-
mers rise and they dont fall into a
making appeals more expensive.
So, GoI should not be in a hurry to
the Patient
on average, since then. The last two quarters, from January to after upgrading the legal infrastruc- work, given the heterogeneous natu- debt trap. This will obviate the need enforce the personal bankruptcy This refers to the Edit, Heal-
June 2017, have been especially bad. CMIE cites the lack of in- ture in terms of reach, strength and re of our population and the varying for farm loan waivers that hurt cred- code. An out-of-court settlement cou- thcare Systems Absent Ac-
vestment appetite and says most projects being finished now sensitivity to diverse needs? job prospects among states. The In- it discipline. The policy focus should ld well be the best way for individuals countability (Aug 16). What it
In 1860, following the crash of the solvency and Bankruptcy Board of also be to bring the unbanked section to renegotiate onerous debts. The mentions as dedication is
were proposed 10 years ago. The government should try to mi- booming cotton trade in Bombay, India the regulator to oversee in- of the population under the formal setting up of the Financial Ombuds- singularly missing from our
tigate financial and other risks associated with investments many filed insolvency petitions and solvency proceedings has been banking network and foster a heal- mans office to offer financial advice hospitals, particularly those
to bring animal spirits back to the business of forming and ex- sought protection from the Bombay pragmatic to go for a phased appro- thy credit culture. and counselling is an idea whose that are government-run. Pa-
ecuting new projects. High Court. Siddiqis research rev- ach in rule-making. In the US, more than a million peo- time has come. tients need sensitivity, sup-
eals that 85% of the 20,980-odd petiti- The bankruptcy code allows an am- ple are reported to file for bankrupt- port and willing care from the
oners who filed for bankruptcy bet- nesty for individuals with debts up cy protection every year. Its robust staff as much as hospitals
need funds.
This was not
the strong
Which goes to prove that even Bond point of the
should never say never again FUNNY BUSINESS staff at the
hospital. As

Old Bonds Die Hard, Our Other Independence Day

long as pati-
ents are treat-
ed as bed numbers rather than
as human beings, no funding

Craig is Back After that, as the licence raj inspec-

tors had feared, the economy went
out of control into the hands of these
though we have a myriad problems,
let us not forget to look back fondly
when our economy, through socialist
bank for a basic banking function,
took a token, and there was a good
chance youd never leave the branch
will change the system.

Back in 2015, the world was a different place. Brexit was still Pune
private sector entrepreneurs, and years, was compared to Chad and for the rest of your life. You grew old
only a spectre, Bihars mahagathbandhan offered a quantum
of solace to many, if only to die another day. But in 2016, ISIS
nonsense things like efficiency and
customer satisfaction and free mar-
Sudan. Many observers note 1991as
the year Indias economic chains
there, married there, died there.
Some argued it was slow but no one ATMs Only as
made it brutally evident that the world is not enough, the Pa-
Anuvab Pal
ket competition took over.
Today, as India boasts of one of the
were broken. But at what cost?
Let us take a minute to remember
could deny it was personal. You knew
every person and waited with them.
Cash Cows
nama Papers surfaced to scare the living daylights out of sev-
highest GDP growth rates in the wor- five economic freedom fighters who  Vayudoot: Rumoured to be an air- Apropos ATMs Face Their
eral people in crucial posts, and strong suspicions arose that ld, and global funds still eye us even died so India today could have the line the government started, some Walkman Moment by Pratik
the US election process had been trumped from Russia with Indias economy has come a long way PVRs, the Apples, the Hondas, the said it was a bird. No one was ever Bhakta (Aug 16), digitisation
love. With Kim Jong-un proving to be a thunderball, and the in 70 years. During the famous liber- malls, the McDonalds that our child- sure. And no one had actually flown apart, there are other reasons
new man in the White House being likened to a skyfall, it is alisation speech, Manmohan Singh ren so take for granted. it, though some said the airline for the potential demise of the
famously quoted Victor Hugo when  The Ambassador car: It took a cle- covered massive distances like the ATMs. One is dysfunctional
not surprising at all that a reluctant Daniel Craig has realis- he said that no power on earth can ar bullet in its heart, the day foreign top of Nariman Point to the end of ATMs with the perennial Out
ed that never say never again is a good adage for Commander stop an idea whose time has come. cars came in. A superb vehicle that Nariman Point. of Order boards. The other is
James Bond to live (and let die) by when on Her Majestys sec- Interestingly, the time had come was a car but could also be a home  Campa Cola and Gold Spot: Best the commission charge and
ret service, and finally admitted that he will use his cinema- because we were in a financial cri- and looked like a caravan for a hobo. ever as well as Made in India soft dri- taxes that one needs to pay on
sis, requesting the IMF to bail us out Spare parts were available at any paan nks. Inspired by foreign soft drinks. ATM transactions beyond a
tic licence to kill again, come 2019. because of some stupendously fan- shop or with any relative who had a  TV news: No one was shouting. No certain threshold, which has
The return of the blond and blue-eyed male super spy might tastic economic policies that ensur- hammer, some nails and some oil. matter how scary or insane the news. driven customers towards
disappoint those who were hoping for a return to a dark-hair- ed that we were isolated from the When air-conditioning was instal- They read it like a checklist and the crowded branch counters.
world economy. led, the car stalled. Which makes government picked who read the ATMs provide a valuable 247
ed007 such as Tom Hardy or Henry Cavill or even a Jemi-
And now, we had to free the econo- sense. As yoga practitioners will news based on lack of emotion. Tod- service and it will be good not
ma Bond now that M and Moneypenny have also changed. my or be left without any money. agree, concentration on one thing is ays generation has no way of ment- to see them evolve further.
Of course, Idris Elba as a Bond of Colour mooted by Ste- Many argued that the British had key. Two things simultaneously ally processing what Ive just written.
ven Spielberg last year will surely remain a contender the found a rich country and left it poor. could be confusing. Things need to go for new things to SUNDER G

So, it took special care and main-  Public sector banks: ATMs today be born. Let us take a second to ack- Navi Mumbai
next time. The question is, what or who will be the villain tenance by our economic decision- are so mechanised, clinical. You go, nowledge the great contribution of
this time, as there are many real-life contenders whom Hol- makers to keep us poor for an addi- you take money, you leave. Pre-econ- the five things above to become what Letters to the editor may be addressed to

lywood would find irresistibly inspiring. tional 45 years. Two things Manmohan killed omic independence, you went into a weve become.

CONTRAPUNTO The hottest place in Hell is reserved for those who

WWW.ECONOMICTIMES.COM remain neutral in times of great moral conflict MARTIN LUTHER KING, JR Around the World  17
Grace Mugabe Claims Trump Ends Business Councils Britain Seeks Brexit
Diplomatic Immunity in Without Borders for
S Africa Assault Case
Johannesburg: Zimbabwes first
lady Grace Mugabe has claimed
diplomatic immunity after being
accused of assaulting a 20-year-
as CEOs Turn Against President
Makes the announcement on Twitter, less than an hour after one of the
Northern Ireland
London: Britain has said there
Trump Praises Kim should be no border posts or
old model, South African police
groups was said to be planning to inform the WH that it would disband immigration checks between
said on Wednesday, confirming Jong Un for Backing Ireland and the British province
she had not fled the country. The of Northern Ireland after Brexit,
suspect(s) lawyers and her gov- Wa sh i ng ton : Donald T rump Down on Guam Threat in a paper that attempts to resolve
ernment representatives made said hes disbanding two advisory Washington: US President Don- one of the most complex aspects of
verbal representations... that the groups of American business lead- ald Trump on Wednesday its departure from the EU.
ers, after CEOs quit this week as the praised North Korean leader Some 30,000 people cross the
suspect wished to invoke diplo-
president faced blowback for failing Kim Jong Un for a wise deci- 500-km border every day without
matic immunity cover, a state- to sufficiently condemn white su- sion not to fire missiles towards customs or immigration controls;
ment from the police ministry said. premacists. the US territory of Guam and for negotiators must work out new context of the land border with
The 52-year-old wife of President Trump made the announcement easing escalating tension be- arrangements without inflaming Ireland, without creating any new
Robert Mugabe is accused of at- on Twitter, less than an hour af- tween the two countries. tensions in a region that suffered obstacles to trade within the UK,
tacking Gabriella Engels on Sunday ter one of the groups was said to Reclusive North Korea has made decades of bloody turmoil before a Northern Ireland minister James
be planning to inform the White no secret of its plan to develop a peace deal in 1998. Brokenshire said. The government
evening at a Johannesburg
House that it would disband. missile capable of firing a nuclear As part of a series of papers that said reaching an agreement with
hotel where the first ladys two Rather than putting pressure on the warhead at the US to counter Prime Minister Theresa May the EU that there should be no
sons were staying. Engels has business people of the Manufacturing what it perceives as constant US hopes will push forward talks border infrastructure was top of
registered a case with the police Council & Strategy & Policy Forum, threats of invasion, and tension with the EU, the government on Britains list of priorities.
alleging assault with intent to do I am ending both. Thank you all! has been rising for months. Tuesday outlined its vision for a May also said Britain would con-
grievous bodily harm, saying she Trump said on Twitter. Trump warned North Korea frictionless customs system, sider stepping in to replace some
His remarks were a reversal of according to a per-son familiar While more than half a dozen CEOs last week it would face fire which drew criticism from some EU funding for peace projects in
suffered deep cuts to her forehead
what he said a day before, when he with the matter, who wasnt author- have quit a manufacturing CEO and fury if it threatened the in Brussels. Northern Ireland after it leaves
and the back of her head. AFP tweeted that he had plenty of CEOs ised to discuss the news publicly. group, others have said they wanted to United States, prompting North Wednesdays publication drew the bloc in March 2019, to prevent
who wanted to be on the panels to The strategy group is one of sev- stay on the panels in order to influence Korea to say it was considering heavily on those proposals as a a resurgence of violence between
replace those who quit, and called eral the White House convened White House policy. The manufactur- test-firing missiles towards the solution for Northern Ireland that pro -British Protestants and
the CEOs who left grandstanders. earlier this year to advise the presi- ing council hasnt met since February. Pacific island of Guam. Kim would not involve physical border Catholic Irish nationalists.
Philippine Police Kills 32 in The executive council, which is led dent. Several CEOs from a manu- The CEOs of Under Armour, Intel, Jong Un of North Korea made a infrastructure and border posts. Commenting on an advance
Drugs Wars Bloodiest Day by Blackstone Group LPs Stephen facturing council quit this week, Merck quit earlier this week. And on very wise and well reasoned The paper provides flexible and briefing of the position paper,
Schwarzman, planned to inform following blowback over Trumps Wednesday, Inge Thulin, CEO of 3M decision, Trump wrote on imaginative ideas and demon- the Irish government said it was
Manila: Philippine police killed the White House Wednesday before remarks about racially charged vio- left, as did Campbell Soup CEO Denise Twitter. Reuters strates our desire to find a practical timely and helpful and that it
32 people in dozens of anti-drug making the announcement public, lence in Virginia on Saturday. Morrison. Bloomberg solution that recognises the unique hoped enough progress could be
operations in a province north economic, social and cultural made to move talks forward. Reuters
of the capital, Manila, in the
single deadliest day of President
Rodrigo Dutertes unrelenting Trump Again Blames Both Sides for Violence Mashable Hires Bankers to
at White Supremacist Rally in Charlottesville
war on drugs. About 109 petty
criminals, including street-level Study Options Including Sale
drug peddlers were arrested more capital and isnt in conver-
and dozens of guns seized in Los Angeles: Mashable Inc is ex- sations about a sale.
New York : President Donald ploring strategic options includ- Pete Cashmore, who founded
police operations across Bulacan
province from Monday night
Trump insisted on Tuesday that left- Barack Obama Breaks ing the sale of all or part of the the media company at age 19 in
and right-wing extremists became online media company, according
until Tuesday afternoon, said violent during a weekend rally by Twitter Record With to people with knowledge of the
Aberdeen, Scotland, held talks to
sell Mashable to CNN about five
provincial police chief, Romeo
Caramat. We have conducted
white nationalists in Virginia, reig-
niting a political firestorm over US Charlottesville Tweet matter.
Mashable, founded in 2005,
years ago. The publisher offers
European companies a foothold
one-time, big-time operations race relations and his own leadership Washington: A tweet by former may draw interest from buyers in new, online media popular
in the past, so far, the number of of a national crisis. president Barack Obama about in Europe and the US, said one of with younger audiences. US com-
casualties and deaths, this is the Trump, who drew sharp criticism the violence in Charlottesville the people, who asked not to be panies are already well en-
from Republicans and Democrats has become the most liked identified discussing private in- trenched in this area. Time Warn-
highest, Caramat told a news for his initial response, reverted message in the history of Twit- formation. The company said on er Inc is one of Mashables major
conference. He defended police on Tuesday to his position that ter, the company said on Tuesday it hired LionTree Advi- investors and led a $15 million
action and said the deaths were both sides were at fault for the vio- Wednesday. sors LLC months ago to seek funding in March 2016. Bloomberg
during shootouts, and were not lence, a day after bowing to pres- The tweet by the countrys
executions, as activists have of- sure to explicitly condemn the Ku first black president quoted
Klux Klan, neo-Nazi and white su- Nelson Mandela. No one is

June Cyberattack Will Cost

ten alleged. Reuters
premacist groups. Mourners attend a memorial service inside the Paramount Theater for born hating another person be-
Appearing angry and irritated, the car attack victim Heather Heyer in Charlottesville cause of the colour of his skin
president maintained that his origi- or his background or his reli-

Colombia Says FARC War

nal reaction was based on the facts
he had at the time. Blame, he said,
reporters turned tense.
Not all of those people were neo-
thats the way it is.
Democrats seized on Trumps lat-
gion, Obama tweeted on Sun-
day, following deadly clashes in Up To $300 Million: Maersk
Over as Last Guns Roll Away belonged on both sides. Nazis, believe me. Not all of those est words as evidence that Trump the Virginia city between neo- mentals for container shipping,
Bogota: President Juan Manuel You had a group on one side that people were white supremacists saw white nationalists and those Nazi sympathizers and counter- Copenhagen: AP Moller-Maersk Skou told Bloombergs Matt
was bad, and you had a group on the by any stretch, Trump said of the protesting against them as morally protesters. A/S said a cyberattack that hit Miller and Guy Johnson.
Santos declared Colombias 50-year other side that was also very violent. participants in the deadly protest. equivalent. As of 1300 GMT Wednesday, the owner of the worlds biggest Frode Morkedal, the manag-
conflict with FARC guerrillas finally And nobody wants to say that, but Ill There was a group on this side. You By saying he is not taking sides, Obamas message had been container shipping company ing director of Clarksons Platou
over on Tuesday, as the last truck- say it right now, Trump said, refer- can call them the left ... that came Donald Trump clearly is, said liked 3.2 million times, and re- at the end of June will wipe as Securities, said the report was
loads of decommissioned weapons ring to right- and left-wing protesters. violently attacking the other group. Democratic Senate leader Chuck tweeted 1.3 million times. AFP much as $300 million off profits slightly on the negative side,
rolled away to be melted down. From there, the back and forth with So you can say what you want, but Schumer of New York. Reuters in the third quarter. but we find solace in their posi-
Santos himself shut a padlock on The announcement was made tive market comments, in a
in connection with note to clients. Of
the last lot of decommissioned
rifles before it was taken out of a
remote demobilisation camp to
Amazon Does Great Damage to Retailers: US President second-quarter earn-
ings, which showed
Maersk missed ana-
the 31 Maersk ana-
ly s t s t r a c k e d b y
Bloomberg, 15 are
formally seal the UN-supervised age echoes chatter in Trump claimed Amazon and analysts have largely dismissed lyst estimates after telling investors to
disarmament by the Revolutionary Washington: US President Donald Washington and academ- was a monopoly that he antitrust threats for the worlds larg- taking a writedown buy the stock, 12 sug-
Armed Forces of Colombia (FARC). Trump once again unloaded on ic circles that Amazon would go after for anti- est online retailer, though a US law- at the tankers unit gest holding on to it, Inc, tweeting that the and other technology com- trust violations if he were maker has called for hearings on the thats part of the en- and four say clients
With the laying down of arms ...
company is hurting other retailers panies may have become elected. Amazon takes proposed deal to consider its ramifica- ergy business man- are better off selling.
the conflict is truly over and a new and implying that its killing industry too big and powerful. about 70% of all e-book tions for shoppers and workers. agement has said it wants to get David Kerstens, an equity ana-
phase begins in the life of our na- jobs across the US. Apple Inc, Alphabet Inc, sales and 30% of all US While its unclear what prompted rid of. lyst at Jefferies, said the fact that
tion, Santos said at a ceremony Amazon is causing great damage Microsoft Corp, Facebook e-commerce. Believe Trumps tweet, The Washington In an interview with Maersk Line reported its first
in Pondores, a remote area in the to tax paying retailers, Trump said Inc and Amazon are the me, if I become presi- Post ran a scathing editorial about Bloomberg Television, Chief profit in five quarters shows
northern Guajira department. We in a Twitter post Wednesday, causing biggest companies in the Jeff Bezos dent, do they have prob- Trump in the paper on Wednesday, Executive Officer Soren Skou that fundamentals in container
shares in the online retailer to fall. world by market cap and lems. Theyre going to and there were also pro-tax reform said the industry outlook was shipping continue to improve,
have been a republic for 198 years.
Towns, cities and states throughout dominate many facets of everyday have such problems, Trump said in advertisements that ran on early bright, despite the disruptions according to a note. Kerstens is
Never had we had such a long the US are being hurt - many jobs be- life. Some critics have even suggested February 2016. morning talk shows. Amazons of cyberattacks and writedowns. among analysts advising clients
conflict and today is indeed the last ing lost! Trump said in the tweet. that they should be broken up. In June, Amazon agreed to buy shares fell less than 1% to $975.19 at Management at the Danish com- to buy. Clarksons has a neutral
breath of that conflict. AFP Trumps reference to great dam- During the presidential campaign, Whole Foods Market Inc. Experts 10:18 a.m. in New York. Bloomberg pany sees very healthy funda- rating on the share. Bloomberg

Crossword 6539

Daniel Craig is Coming        


Melbourne Most Liveable City




For the seventh consecutive year, 
Melbourne has been ranked as the 7KHKRXUEHLQJZURQJEXWQRWIDURII 
Ten most liveable cities Ten least liveable cities most liveable city globally by the   2QHDWWHPSWVWRFRQFHDODQDLPWKDWV
Overall Overall Economist Intelligence Units liveability PRUHZLWKLW 
Rank City Rating Rank City Rating survey of 140 urban centres

1 Melbourne 97.5 131 Kiev 47.8 worldwide, followed by Vienna and   
Vancouver. Canadas Toronto ranks %HDVSRUWDQGSURYLGHVRPH
2 Vienna 97.4 132 Douala 44 fourth, and Calgary (Canada) and  HQWHUWDLQPHQW 
3 Vancouver 97.3 133 Harare 42.6 Adelaide jointly share the fifth place. 7LPHVIRUELJLQWDNHVRIUHOLJLRQ 
4 Toronto 97.2 134 Karachi 40.9 Although the top rankings have remain   
British actor Daniel Craig has confirmed unchanged, the past few years have 7LPHWRKDYHUHIXVDO
5 Calgary 96.6 134 Algiers 40.9 seen increasing instability, causing

he will reprise the role of James Bond UHYHUVHG 
one last time, ending months of 6 Adelaide 96.6 136 Port Moresby 39.6 volatility in the scores of many cities.    
Over the past six months 35 of the 140
speculation. Craig made the revelation 7 Perth 95.9 137 Dhaka 38.7 LVFRYHUHGXS 
during an appearance on the US TV cities surveyed have experienced 
8 Auckland 95.7 138 Tripoli 36.6 changes in their ranking position. This /HDYHRXWWKHRQH7RPVZRUULHGDERXW
Source: EIU

programme The Late Show on Tuesday.  

Asked by host Stephen Colbert whether 9 Helsinki 95.6 139 Lagos 36 rises to 44 cities, or about one-third of 

the total number surveyed, when 7XUQXSRQFHPRUHEHIRUHWKHROGJRG

he would return as James Bond, Craig 10 Hamburg 95 140 Damascus 30.2 IDOOV 
responded: Yes, to cheers from the looking at changes over the past 12
months. Overall, the survey shows a 3OD\VIRUWLPHLQIURQWRIWKHKRXVH 
audience. Craig has appeared four times  

as the spy with a taste for martini: in higher incidence of positive index :RUNRYHUWLPHZKHQVRPHWKLQJWKDW
Casino Royale, Quantum of Solace, movements. The survey shows cities PD\EHJUDQGLVZDQWHG 
that score best tend to be mid-sized 24C@DD &ODLPHGKRWVWHZFRXOGEH
Skyfall and Spectre. Eon Productions, 6KHSURGXFHVQHDUO\HYHU\WKLQJFROG 
ones in wealthier countries with a 3DWWHUQVRIFRQYHUVLRQLQFKXUFK RUJDQLVHG 
the company that runs the movie $PRQJWKHEHWWHUPLQLVWHUVIRUDWLPH
relatively low population density. For  %LWRIZRUNIRUWKHVSLDQ 
franchise, said on its website that the 
instance, six of the 10 top-scoring cities 3HULRGLFDOEDFNQXPEHUWKDWV :KDWWKHSDSHUVD\VLVDKHDGRI 
25th Bond movie would be released in
US cinemas on November 8, 2019, with a are in Australia and Canada, which DWWUDFWLYH  WKHUHVW  D`]feZ`_e`'&$)
traditional early release in Britain and have, respectively, population densities )LQLVKHGEXVLQHVVE\P\VHOIWREH )ULHQGRQUHWUHDWEDFNLQJZKDWV $&52667KHFRPPRQWRXFK8QLWHG
the rest of the world. Reuters of 2.9 and 3.7 people per sq km. YLFWRULRXV  LPSRUWDQW  'RPLQDQW$VVHVVRU7LFNHW

Lincoln Memorial Netflix Co-Founder As movie theaters struggle with tepid sales,
Mitch Lowe has an extreme proposal for how
in Washington to Sell Ads to Pay for to get more people into seats: Let them come
to all the showings they want for about the
Vandalised with $10 Movie Pass price of a single ticket each month. Lowe, an
early Netflix Inc executive who now runs a
Spray Paint startup called MoviePass, plans to drop the
price of the companys movie ticket

Vandals have defaced the subscriptions on Tuesday to $9.95. The fee

Lincoln Memorial in will let customers get in to one showing every Dilbert by S Adams
Washington with an day at any theatre in the US that accepts
obscene message debit cards. MoviePass will pay theatres the
scrawled in red spray full price of each ticket used by subscribers,
paint, the National Park excluding 3D or Imax screens. MoviePass
Service has said. The writing could lose a lot of money subsidising peoples
on one of the huge columns at the monument dedicated to slain president movie habits. So the company also raised
Abraham Lincoln, who presided over the abolition of slavery in America, was cash on Tuesday by selling a majority stake to
detected in the early hours on Tuesday. The message was difficult to decipher Helios and Matheson Analytics Inc, a small,
from the photo made available by the park service, but the government agency publicly traded data firm in New York. The
said it appears to state [expletive] law. More indecipherable writing in silver companies declined to comment on terms of
spray paint was discovered on a Smithsonian museum map on Constitution the financing but said MoviePass intends to
Avenue, which runs along the Mall. Crews are using a special, mild gel-type paint hold an initial public offering by March. Helios
stripper to clean up the monument to the 16th US president, which towers over and Metheson shares rose 5.7% to $2.95 at
one end of the US capitals National Mall, the service said. AFP the close Tuesday in New York. Bloomberg

18  Deep Dive Corporate/Finance THE ECONOMIC TIMES | BENGALURU | THURSDAY | 17 AUGUST 2017


Why Tata Sons chairman N Chandrasekaran has reversed a clutch of the turnaround initiatives by Tata Motors expat CEO Guenter Butschek
Lijee Philip, Kala Vijayraghavan Guenter Butschek N Chandrasekaran
and Ketan Thakkar Getty Images Getty Images

fter the sudden demise of Karl
Slym in early 2014, 15 months af-
ter he was appointed Tata Motors
chief executive, Cyrus Mistry
had to fill the breach. The then
chairman of Tata Sons also embarked on
a search for a new CEO, an exercise that
would take him almost two years. Guenter
Butschek appeared to be just the honcho
the Indian car and truck maker needed
he had the domain experience (he worked
at Daimler AG for 25 years); had spent
time in foreign markets such as China
and Europe and had the experience for a
corporate transformation, something Tata
Motors badly needed.
So, when Butschek took over in mid-Feb-
ruary last year, he quickly got down to ex-
ecuting the various prongs of his game
plan going for growth with more prod-
ucts and faster launches; becoming more Butscheks role, say those aware of
customer-focused and cutting costs ruth- boardroom developments, was also ques- Done, Undone
lessly, including those of manpower. tioned, along with that of head of CVs
From April 1, 2017, Butschek set in mo- Ravindra Pisharody, on the management XJune: Did away with
tion a new organisational structure, get- of inflated stock of BS III vehicles. Tata designations for over 10,000
ting rid of 14 management levels; now Motors, they say, seemed unprepared for workforce
there would be only five. In early June, adequate supply of BS IV stock once the
Tata Motors decided to do away with des- regulation for tighter emission norms XCurrent status: No
ignations for its over-10,000 workforce. was enforced from April 1. Pisharody put designations policy has been
The objective was to create a flat organisa- in his papers in early June.
tion. There is going to be a delayering Butschek has had some huge challeng- reversed as it was felt employee
processThe leader has to take tough es along the way, like the sudden pulling morale was being affected
calls, Butschek told ET in February. forward of BS IV norms (for commercial
XFebruary: Launched the
Meanwhile, plenty was, of course, hap- vehicles), which was hard to predict,
pening at Tata Sons, the holding company says Hormazd Sorabjee, editor, Autocar TaMo sub-brand to develop
of the diversified conglomerate. Mistry India. The earlier deadline set for BS IV aspirational and next-gen
had been forced out, Ratan Tata came in as was March 31 to produce; sale was expect- vehicles with a proposed
interim chairman and, early this year, N ed to be allowed in subsequent months but
Chandrasekaran was appointed Tata the Supreme Court banned it beyond investment of `250 crore
Sons chairman. It didnt take him too long March 31. This led to unsold stock of over XCurrent status: Project has
to hunker down at the beleaguered au- `2,400 crore at the company. Sorabjee,
been temporarily shelved,
tomaker, whose net profits (excluding though, reckons Butschek is the right discussions around a potential partner- Mistry had to step in. With the new chair- from the MD. Our product plans are also
Jaguar-Land Rover) had plunged 96% in man to set things right. He understands keeping costs in mind ship for sharing vehicle platforms, en- man, there is operational stability and being periodically reviewed, based on the
the December 2016 quarter. what is right for the business. Its not easy XMarch: Proposed partnership gines and production facilities. For Tata Chandra has clearly said it is his no. 1 pri- dynamic business situation.
The legacy of Tata Motors has always turning around Tata Motors but hes got Motors, with its bleeding passenger vehi- ority to get Tata Motors back to health. In Butschek, who will complete two years
been the kind of mind space it took from the capacity to take the bull by the horns. with the VW Group for sharing cle business, and the VW Group, which is any company, the role of a chairman is to at Tata Motors helm next February, may
every Tata Sons chairman from Ratan Tata Motors closed the year ended vehicle platforms, engines and rebooting its emerging markets strategy empower the CEO and Guenter seems to have little time to show results.
Tata to Cyrus Mistry and now Chandra, March 2017 with a loss of `2,480 crore. production facilities in the aftermath of dieselgate, the pro- be doing a great job and Chandra should Unconfirmed reports suggest his annual
says a top Tata official, seeking anonymity CV volumes inched up by only 0.8%, posed partnership was seen as ideal to be happy, adds Bhargava. compensation, `22.55 crore in FY17, may
A month into taking over, Chandra had compared with the broader industry XCurrent status: Discussions become relevant in the highly competi- Tata Motors is currently going through be linked to turnaround parameters such
made Tata Motors his top priority. In its growth of 4%, a performance Butschek for the partnership have been tive and fast growing Indian car market a turnaround phase, with a strong focus as cost-cutting targets. A Tata Motors
recently released annual report to share- admitted in the annual report was not put on hold and cut production and development cost. on improving the bottom line by rigorous spokesperson says, Tata Motors, like any
holders, the group chairman voices his a hallmark of a leader. Clearly, Chandra wants a turnaround, in cost reduction and sales enhancement, other company in the group, is perfor-
concern. Turning around the domestic a way he thinks is right. So where does leveraging our superior range of new mance-driven and compensation for all
business of the company is the need of PRIORITY CHECK sales and the regional sales team, a person that leave Butschek? products, a Tata Motors spokesperson employees is based on performance.
the hour as it has suffered from delays in Ever since Tata Motors became Chandras close to the development said. Subodh Bhargava, an independent di- told ET on the internal communication Meanwhile, Tata Motors is in discussion
new product launches, lack of adequate top priority, the executive committee has If Chandra is calling significant shots at rector on the Tata Motors board till mid- with the ministry of external affairs re-
response to competition and an unsus-
tainable cost structure, Chandra wrote.
begun reviewing its turnaround execu-
tion plan on a monthly basis; earlier, it
Tata Motors, hes also rolling back a few
of Butscheks turnaround initiatives.
2017, says, Butscheks leadership has
been good for Tata Motors. He is a turna-
COMETH THE HOUR garding compensation for its German
MD. The issue whether a foreign CEO
A little over a year and half since was done every quarter. Whats more, in Recently, for instance, the company re- round artist and has clearly demonstrat- of a loss-making company is entitled to
Butschek stepped into Tata Motors cor- areas such as sales and market share, versed the no designations policy to re- ed that in his previous assignments. Tata Butschek is a his entire compensation. The companys
ner room, the group chairman has thrown daily reviews are underway. duce hierarchies, as it was felt this had Motors has been in need of a transforma- turnaround artist Tata application to ensure the CEO gets his
down the gauntlet at the Tata Motors Chandra is now working closely with impacted employee morale. tion for several years. Butschek is doing entire compensation is with the gov-
CEO of 19 months. Two people in the Butschek and Tata Motors senior manage- Another Butschek initiative thats be- now what should have been done earlier.
Motors has been in ernment. Talks are going smoothly and
know say the chairman thought Butschek ment, overseeing strategy the topmost come a casualty of cost-cutting and sharp- Bhargava points out that turnaround need of transformation the application is under active considera-
was more focused on organisational re- priority being to get CVs back on track. er CV focus is the TaMo sub-brand. TaMo, plans for Tata Motors have been in the for several years and tion, adds the Tata Motors spokesperson.
structuring and turning around the pas- Focus areas include advancing product set up as a division, had the mandate to works for the past three to four years. The At the time of writing, the Tata Motors
senger vehicle business than on the com- launches, visiting top dealers to instil con- develop aspirational and next-gen vehi- biggest problem with Tata Motors, he Butschek is doing now spokesperson told ET Butschek would
mercial vehicle (CV) business. fidence in the new product portfolio and cles outside the main Tata portfolio. An reckons, is the legacy of its cost struc- what should have been meet the media on August 21 a day
CVs account for 60% of Tata Motors aligning production with demand. A war- investment of `250 crore was reportedly ture, especially manpower, which is com- ahead of the annual general meeting to
standalone revenues and over 60-80% of room concept has been set up at the sales required for this project and the top brass pletely out of sync with current volumes
done earlier share details of the turnaround strategy
profits; it is a market leader with a share office in the Mumbai suburb of Andheri may have felt this isnt quite the time for and technology . The company also had to SUBODH BHARGAVA and a new corporate brand identity. At the
of 42.79% at the end of fiscal 2017, al- on recommendation of consultancy firm such investments. deal with leadership gaps due to depar- Former independent director AGM, Chandra and Butschek will have to
though that figure is down from a high of Accenture. Performance is tracked here Then, a few days ago, Tata Motors and ture of two CEOs (Slym and Carl Peter at Tata Motors be ready for a barrage of questions from
almost 57.8% six years ago. from region to region daily by the head of Volkswagen group firm Skoda Auto ended Forster before that). Ratan Tata and then investors on the way ahead.

SoftBank, Hard Bargains

Grant Thornton, an advisory and produce more unicorns than in the
consulting firm, says, India needs last five years.
a large investor like SoftBank to help Analysts believe the Indian inter-
develop the market. For an investor net businesses are different from
in a startup ecosystem all bets will what they were two years back when
never pay off. Growth is always chop- they were chasing growth without
py. Indian internet businesses have an eye on unit economics. Investors
for SoftBank that will outlive him, be a $60-70 billion business. stake bought for a mere $200 million barely scratched the surface. Theres dont want to throw money just to
Making sense of the Japanese says a Delhi entrepreneur. Son, who founded SoftBank along back then was worth a whopping plenty of headroom for growth. help startups acquire customers,
mega investors $6.5-billion India bet, over Son may not have to wait that long
for his India bets to pay off al-
with two part-time workers in 1981,
has had a penchant for reading
$60 billion when the Chinese ecom-
merce giant listed on the New York
More than half the Indian popula-
tion is not yet online and less than
but to create profitable businesses.
As macro trends point to grow-
half which has been pumped into two of though all of them will surely not macro trends and betting on com- Stock Exchange in 2014, the biggest a fifth of the online population has ing adoption of technology-driven
hit pay dirt, even if one or two do, panies that can build scale around IPO in the exchanges history. experienced digital benefits like economic growth, Son would have
Indias biggest digital plays SoftBank will be in clover (See The those trends. Back in Y2K, he bet on SoftBank was also an early investor payments and shopping. Besides, achieved his other objective. He
SoftBank India Portfolio). the then unknown e-commerce and in Yahoo Japan from which he made a Indian internet businesses have just looks at number of people he can im-
know more about technology, adds Its not as if Son looks at each in- payments company Alibaba. A 28% fortune. Hes had his share of duds, too. a handful of unicorns, and SoftBank pact with his investment. Where else
Shelley Singh Sharma. SoftBank plans to invest at vestment in isolation. SoftBank For instance, during the dot com bub- has invested in more than half of (other than China) can you get that
least $10 billion in India, about 65% bets on macro trends, says the ble bust at the turn of the century, he themFlipkart, Paytm, Ola and but in India now and in the near fu-
Vijay Shekhar Sharma may not be ex- of which has already been deployed India head of an internet giant on reportedly lost more than $50 billion. InMobi. Number of unicorns will ture, adds Sharma of Paytm. In that
aggerating when he says Masayoshi (It also plans to invest around $20 condition of anonymity. Thats why at least double in the next five years sense, Flipkart or Ola or Paytm could
Son, founder of the SoftBank Group, billion in non-digital ventures like he is the most successful technol- HICCUPS IN INDIA PORTFOLIO and there will be more opportunities be Sons Alibabas in India. Any bets?
is the worlds biggest dealmaker. solar, in partnership with Foxconn ogy investor with a proven track SoftBank is no stranger to early- for a late stage fund like SoftBank, (Additional reporting
The founder of digital payments and and Bharti Enterprises). Unlike record of more than two decades. stage investing in Indian startups. says head of a digital venture who by Kunal Talgeri)
ecommerce brand Paytm, who first most funds, which have time frames Cle a rly, t he eye -p oppi n g Back in 2000, as an anchor investor wished not to be named.
met Son in December 2016, is trying ranging between three and seven Flipkart investment has not alongside News Corp in eVentures The expanding presence of a
to put into perspective SoftBanks year, SoftBank is a late-stage, long- been made with an eye on im- India, it had funded MakeMyTrip fund like SoftBank boosts the The SoftBank India Portfolio
$1.4-billion investment in his com- term player, with a time horizon mediate returns. An analyst who and Netmagic before the VC fund startup ecosystem in India. Says Company No. of deals Amount invested
pany, which sent Paytms valuation anywhere from 15 to 25 years. requested not to be identified ex- shut shop. Of its more recent early- Niren Shah, managing director at ($ million)
soaring to $7 billion. Son, for his part, is known to think plains, Current gross merchan- stage investments, some havent Norwest Venture Partners India: Flipkart 1 2400
Its not difficult to do. Not when, even longer-term. For instance, in dise volume of ecommerce in India shown much promise as yet, includ- SoftBanks focus on the Indian e- Paytm 1 1400
less than three months later, an interview with CNN Money in is $15 billion, which is expected to ing Housing and Snapdeal. commerce space is very positive. It Ola 4 587.84
SoftBank once again loosened its December 2016, he talked about a grow to $50 billion by 2020 and $200 SoftBank India reported a loss will be able to provide growth capi-
EdCast 1 NA
purse strings to pour $2.4 billion into 300-year plan to break down lan- billion by 2030. By then if Flipkart, of $1.4 billion in its annual filing tal to internet companies.
Flipkart; this takes its total invest- guage barriers globally and allow in which SoftBank has made in March, largely on ac- Agrees Sreedhar Prasad, part- InMobi 1 200
ment in the countrys ecommerce people to communicate telepathi- its single largest invest- count of investments in ner and ecommerce lead, KPMG Snapdeal 3 743.29
play to close to $6 billion. The latest cally. He also has a goal to create ment so far, has a 30-35% Snapdeal and Ola. India: Presence of large interna- Grofers 1 120
investment round announced last technologies that could allow market share, H a r i s h N V, tional players is a big boost to and Housing 3 88.36
week has got Flipkarts valuation people to live two centuries! it will p a r t ner, validation of the ecosystem in Oyo 2 NA
back to $15 billion, after a series of In June 2010, the SoftBank India. Education, fintech, logis-
Total invested: Approx. $5.5 billion*
downgrades by global funds, which chairman & CEO made a tics are areas where we could
hammered it to below $10 billion. 133-slide deck shareholder see the next set of unicorns. In * Excludes investments in solar and
The Flipkart mega investment presentation. One of the slides the next five years, India could other non-digital businesses
comes close on the heels of failed at- carried this line: Look into the Source: NewsCorp VCCircle
tempts to merge online marketplace far distance, whenever you get
Snapdeal with Flipkart, with the lost, alluding to the long term.
formers founders exiting from dis- Son has a business plan drawn RED CARPET
cussions ostensibly over valuation.
Son, who had invested $627 million India needs a large
in Snapdeal in October 2014, said,
I respect the founders decision. investor like SoftBank
Snapdeal chose to move forward as to help develop the
a standalone entity.
For SoftBank, Flipkart and Paytm
market... Theres
mark the start of a big investment plenty of headroom
push (after former SoftBank presi- for growth
dent Nikesh Aroras exit in June Harish NV
2016). Son is known for his multi- Partner, Grant Thornton
billion dollar bets around the world.
He does after all have a $93 billion
fund to dig into the SoftBank SoftBanks focus on
Vision Fund, the worlds largest Indian ecommerce is
tech fund, with investors that in-
clude Apple Inc, Qualcomm and the very positive. It will
Public Investment Fund of Saudi be able to provide
Arabia. That may explain a recent
$1.1 billion investment in pharma Masayoshi Son growth capital to
firm Roivant, and a $4 billion buy internet cos
into US chipmaker Nvidia in May. Niren Shah
Binny Bansal Managing director, Norwest
Son is a technology visionary. He Sachin
Vijay Shekhar
doesnt waste time in understand- Bansal
Venture Partners India
ing the business model, but wants to

Gadgets & You Powered By ET Panache 19



It seems like 2017 is the year of

dual camera smartphones
Gionee is not one to be left be- PRICE `26,999 REVIEW
hind and this is the result. This
Some common phone gets the Plus suffix be- SPECIFICATIONS
cause everything about it is 6-inch IPS (1920 x 1080 pixels), octa core Mediatek Helio P25,
complaints never large: large screen, chunky de- 4GB RAM, 64GB storage (expandable up to 256GB, hybrid SIM
sign, big battery and heavy hit- slot), 13 + 5MP dual rear camera, 20MP front camera with LED
seem to go away: ters in the camera department. flash, WiFi n, Bluetooth 4.0, USB Type-C, fingerprint scanner,
In fact, unlike some of the 4,550mAh battery, 226 grams
issues with phones that only concentrate
transfer & backup on the front or rear camera, the
A1 Plus asks, why not have Large & heavy, small battery
of contacts, doing both? (considering overall thickness
Once you get around the huge & weight), video recording
more with PDF size and weight of the device, limited to 1080p, fingerprint
youll see the vertically stacked scanner is slow at times, no
files and keeping dual camera system at the OIS for camera, overbearing
back. Theres also a large circu- Amigo OS (Android skin),
your data privacy lar depression which you might expensive considering the
think is a fingerprint scanner, competition
intact. Karan Bajaj but in reality its just the
Gionee logo. The fingerprint Latest Android,
offers some quick scanner is up front, under the good dual
camera system, all-
advice to keep screen and built into the home
button. In front, theres no metal build quality,
fast charging
these issues in branding and the massive
6-inch screen takes up most of support (quick
check the space. We were expecting
the bezels to be a bit thinner,
charger included)

especially considering the the multiple picture modes. large your eyes. Video record-
HandlingContacts Wiping The Identify Fake SD Cards Managing PDF Files price. The screen is pleasing to Apart from the usual auto and ing is good quality but limited
look at: the 1080p resolution is pro (manual mode), there is to 1080p resolution. Given the
Deleted or lost contacts is a Phone Securely While its easy to identify fake Your email inbox is full of PDF files good enough and the colours, night, panorama, time lapse, price of the phone, some of the
common issue. The reason smartphones from the software, your phone bills, utility payment viewing angles and contrast slow motion, smart scene, text biggest failings of the camera
could be anything ranging from What do you do with your old its not as easy with storage receipts, bank statements or your are all spot on. recognition (it can convert an include the absence of optical
a damaged or lost smartphone phone? Many will give it to a cards. Fakes have flooded the work related documents. While you Gionee skins its phones with image of text into editable image stabilization (felt dur-
to an accidental data wipe. friend/relative or exchange/ market and there are chances can easily view these files using a Amigo OS while it is the lat- text), GIF, PicNote (intelligent ing low light and video) and
sell it. But how do you make you will end up with a fake card reader (Adobe, Foxit Reader), or est Android 7.0, the interface is cropping), scanner (for QR/ the limited video resolution.
sure your personal data is not overbearing (it does things dif- bar codes), business card scan- Performance from the Helio
Contacts can be automatically
accessible to anyone else?
not just online but also from even a browser, editing PDFs is
ferently including putting ner, mood photo, translation P25 is good enough for gaming,
synced with your Gmail account, your local store where most people run into issues
so the latest backup will always be quick settings at the bottom (live translation from one lan- apps and multimedia. The 4GB
available if you enable this. For  While giving away the phone, The first thing to do is check the  Editing requires a PDF editor and a settings area accessed by guage to another, needs data) RAM takes care of multi-task-
swiping up from the bottom) and beauty. And obviously, ing duties. Performance would
iOS users, if you have added your standard practice is to do a official MRP label on the packaging. software most desktop editor
Gmail contacts and switched on factory reset from the settings Genuine products have an MRL label and there are many pre-loaded thanks to the dual camera, be comparable to a flagship
apps are expensive to purchase but games and apps. We counted 17 there is a portrait mode. You from last year. Battery life is
Contacts sync, your iPhone and page. Most of us do not realize with details including contact there are free online options. Try
Gmail contact will also auto sync is that even after a factory information of the company in the pre-loaded apps, though most can adjust the depth of field good: up to 2 days with normal, www.pdfescape.
reset, your data can be country, warranty information, of them can be uninstalled if (bokeh effect) from f16 all the use. It also supports quick
com,, www.pdf2go.
 To be on the safer side, you can recovered from the smartphone importer month and year as well as you dont need them. We found way up to f1.2. In the very wide charge and can share a bit of
com and
export your entire phonebook as contact details of the importer it strange that the Peel remote aperture settings, it tends to battery with another phone us-
an editable CSV file and then keep  To prevent data recovery app is pre-loaded despite the look unnatural. Having said ing USB OTG.
it as a backup in Google Drive or after you have done a factory You can use a free app called SD  In case you just want to merge phone not having an infrared that, the camera generally of- Now, coming to the price
multiple PDF files, you can head to port. There are fers pleasing this is a bitter pill to swallow.
any other cloud storage reset, copy random dummy data Insight from the Play Store to get
on your phone (random large details about your microSD card. some nice fea- r e s u l t s : i t s Just `1,000 extra will get you
 To manage your contacts, you video files, photos etc.) this Install the card, run the app and it
 If your requirement is just
tures though: a
blue light fil-
fast and cap- the OnePlus 3T, one of our fa-
tures good de- vourite phones from 2016-17.
can edit it on your phone or in will over-write the storage of will show you the brand name,
Google contacts and it will be your phone. Now do a factory annotation and removing pages ter, split screen tail. Maybe you re looking at a
model number, capacity, and from a PDF document you can use
updated everywhere. Google reset again anyone trying to manufacturing date of the card. If it and a system T h e f r o n t large phone? The Honor 8 Pro
contacts also gives you the option extract data from the phone will Lumin PDF ( it m a n a g e r camera fares is excellent for `29,990. It has a
shows unknown brand or incorrect works with Google Drive and you
to find and merge duplicates from only be able to get the random capacity, its probably a fake card (cache cleaner, well too, with better dual camera, 6GB RAM,
its web interface dummy data your last stored need to sign-up for a free account vir us protec- t h e d i f f u s e 128GB storage, 5.7-inch 2k dis-
tion, data traf- L E D l i g h t play and 4,000mAh battery. If
 Another way to test the microSD  Another way to edit PDF files is f i c m o n i t o r, w o r k i n g t o you want to spend less, you
If you want to make bulk
changes to your contact
Another way is the use the card is by checking data transfer to open them in Microsoft Word power manag- light up those c o u l d c o n s i d e r M i M a x 2 .
iShredder app (Free, Android speeds. A free app called A1 SD
database, you can export the only) that securely wipes all data word will convert the document for er and the abil- dark selfies. (`16,999). It has a larger bat-
Bench lets you run speed tests on editing but be advised that The A1 Plus has a good dual
entire phonebook as an Excel on your smartphone with the card and lets you compare ity to free ze camera system and is also If youre into tery, larger screen, slimmer
sheet. Once you are done editing, military grade security formatting/layout may not be apps and not the face beau- bezel, is a lot thinner (7.6 vs
results online to identify differences well-built. But the price puts
you can either choose to remove preserved allow back- ty mode, you 9.1mm), has louder speakers
the phone in a difficult spot;
all data from Google contacts and
 If you have a microSD card If a deal seems too good to be g round data/ the large screen Mi Max 2 is a can do things and an IR port. With the A1
then import the edited file or installed on the phone, we true, it probably is! A 200GB  In case you want to create a pdf resource use).
lot cheaper and the way better like whiten, Plus, youre paying extra for
you can import the edited file file from scratch, you can make a MS Coming to the s m o o t h e n the dual rear camera and the
recommend that you remove it microSD card for `999? Thats a word doc file and save it in PDF Honor 8 Pro is only slightly
first and then choose to find and from the phone before giving it camera, the s k i n , s l i m 20MP front camera. Whether
fake. Know the prices of storage and format. Alternatively, you can create more expensive
merge duplicates away to protect your data first thing that d o w n y o u r that much extra is worth it is
you can avoid being scammed one on struck us were face and en- for you to decide.


Launch Pad
iTel PowerPro Mitashi Curved Smart LED TV

Aimed at the budget segment, Mitashi has
launched two new smart curved LED TVs one
PowePro is the new range
with a 32-inch panel and other with the 39-inch
from iTel focused on
Camera battery life. The P41 is the
first device in the range
panel. Both TVs have a resolution of 1366 x
768 pixels, and 176 degree viewing angle. The
39-inch has a 5,000:1 contrast ratio while the
Ricoh Pentax KP PRICE `88,584 and it features a massive
5,000mAh battery. Itel
32-inch has 3,000:1. The TVs also have built-
in WiFi for connectivity, USB port and card
claims the battery can
SPECIFICATIONS Compact, individual (one-touch) controls for deliver up to 51 hours of talk
reader slot to connect additional peripherals, 2
almost everything, excellent image quality, 3 HDMI ports, Ethernet, coaxial, VGA, composite/
24MP APS-C CMOS sensor, Prime IV time. It has a 5-inch display
customisable buttons, tilting screen, weather component and dual 8W speakers. The smart
image processor, 27 AF points, 3-inch with a resolution of 854 x
features are powered by Android and it
tilting display, optical viewfinder, sealed body ` 5,999 480 pixels and runs Android
gets a dual core
7fps continuous shooting speed, RAW 7.0. Hardware includes a
Heavy to carry around, no GPS, no 4k video processor, 1GB
support, customisable buttons, full 1.3Ghz quad core processor,
recording, no direct HDMI connector, RAM and 8GB
HD video recording, microphone 1GB RAM and 8GB storage. You also get a
internal storage.
port, WiFi, 703 grams (body only) battery life could be better 5MP rear camera with dual LED flash, 2MP
Both TVs come
front camera, dual SIM slots, expandable
with 3 years

storage(up to 32GB supported), 4G with
warranty and a VoLTE, WiFi, Bluetooth and GPS. It will be
wall mount kit
available across major retailers in graphite, ` 27,990 included in the
Pentax is not a brand that usu- silver grey and champagne colours. onwards
ally comes to mind when you price.
You know how peoples attitude and expression changes when
think of DSLRs in India. youre holding a camera? Yeah, these guys Ubiquiti noticed
However, Pentax has some ex- it too. Thats why they created this unobtrusive, unassuming

Betting Big On Battery

cellent offerings and the latest little camera that you can wear around your neck. Its a tad
in their catalogue is the larger than a typical smartwatch, has a touchscreen and a
Pentax KP a mid-size couple of cameras: an 8MP f2.2 wide angle primary camera
DSLR aimed at enthusiasts. with optical image stabilization and a 5MP f2.0 front camera
The first thing that im- (the one on the same side as the screen, like smartphones).
pressed us on the Pentax With continuous video, the battery is expected to last about
KP is its compact size it
2 hours. Theres also a story mode it takes
appears smaller than an
photos every few seconds and compiles
No matter what kind of phone you seek, Nubia N2
average DSLR from Canon battery life has become one of the most
or Nikon. Second thing them into a timelapse video it lasts
16 hours in this mode. Its powered by
important features. Some phone makers PRICE `15,999
that immediately comes to may be able to put in more efficient hard-
notice are the number of Android which means you can have ware and employ aggressive battery sav- SPECIFICATIONS
dials and controls that all sorts on apps on there and it can ing tactics but in the end, the large bat- 64-bit octa core
Pentax KP offers. There are also livestream video to your service of tery wins because its an up-front Mediatek MT 6750
three dedicated dials for ad- choice. You do need to pair it with your indicator of better battery life. Nubia processor, 4GB RAM,
justing various parameters existing smartphone though. The company knows this and has introduced the N2 with 64GB storage
as per the selected mode, sells it with 2GB RAM/ a 5,000mAh battery. (expandable up to
three customizable buttons, a 32GB storage for US$399 Its not only about the battery here 128GB; hybrid SIM
function dial and a drive mode plus shipping. though. This is an attractive phone slot), 5.5-inch amoled
dial with 5 custom user modes. camera offers an with all-metal build and you can get display (1280 x 720
You ll also get a dedicated optical viewfinder it in a choice of gold or black. pixels), 13MP f2.2
switch to switch between live (pentaprism) which is Theres an OLED screen, 4GB RAM rear camera, 16MP
view, viewfinder and video preferred by a lot of and 64GB storage which will be f2.0 front camera,
mode, another switch for choos- pro photographers. enough for most. You can still ex-
WiFi ac, BT4.0, A-GPS,
ing between manual or autofo- Image quality from the pand the memory using the hybrid
USB type-C,
cus, a button to change AF mode Pentax KP is top notch but you SIM slot. Some of the features in the
fingerprint scanner,
and a button for AF/AE lock. All need to tweak some settings for down. interface include dual instance (two
this makes the Pentax KP a de- better results. We found that in- instances and hence two accounts 5,000mAh battery,
Some of the things we did not
light for users who want maxi- creasing the sharpening levels like on the Pentax KP include of the same apps), edge gestures 180 grams
mum control at their fingertips. resulted in better photos over- lack of built-in GPS, inconsist- (you can do things like adjust bright- 720p screen Great battery
The button and dial placement
is not random either every-
thing is meticulously placed for
all. What we loved most on this
DSLR is that even at high ISO
levels, noise was
ent autofocus lock (tends to lose
focus lock at times depending
on subject movement) and the
Sele Stick ness by swiping up/down, go to
desktop, go back etc), touch ges-
tures, shake gestures, super screenshot,
(should have
had 1080p), no NFC,
not the best value
life, all metal
unibody design, fast
for money fingerprint scanner
quick access. For those minimal thanks fact that there is no direct There are two kinds of people in this world: those who de- swap the back and menu key and adjust
Pentax KP features a magnesi- who like to the noise re- HDMI-out for connection. test selfie sticks with every ounce of their being. And every- screen mode (saturation, hue).
um alloy body with weather seal- to have duction algo- One issue is with its battery life. one else! If youre in the latter camp, check out the Mighty The Mediatek hardware inside is enough phones at this price have IPS LCDs. Having
ing which makes it great for use maximum r i t h m u s e d by With capturing stills and video, the Selfie Stick thats just started funding on Kickstarter. It has to power the phone through most daily ex- said that, the resolution is only 720p while
in any condition. The downside control on Pentax. We were battery ran out of charge after a very modest goal of US$5,000 and it was close to half that periences. Most of the simple games and many phones will give you 1080p full HD
of weather sealing is that the fingertips, shooting at ISO around 300 images and 20 minutes multimedia run fine but you may run into screens in sun `10k. Its not the best quality
at the time of writing. Its mighty because this stick ex-
camera is bulky to carry at 703 the Pentax 1 2 8 0 0 a n d s aw of video. DSLRs that cost this much some bottlenecks with heavy games. The amoled panel either. Ultimately the choice
tends up to a massive 10 feet! It will still fold down to about
grams even though it does not ap- KP is ideal minimal noise should offer a minimum of 500 extra RAM on board makes sure that you you make is between amoled and resolu-
pear bulky. One feature we loved images were good shots on a single charge. That being 26 inches portable enough to be carried in a backpack. dont see any stutters with multitasking. tion (we would choose the latter). If you
on the Pentax KP is the option of enough to print in 4 x 6 size. It said, if you want to have maximum It also comes with a Bluetooth remote, hand strap, detach- Weve seen strong camera performance want to consider some options, theres al-
interchangeable grips we do was at ISO 25600 that we noise control on their DSLR, do check out able tripod base (it can stand on its own) and can work with from Nubia phones and the N2 also scores ways the Redmi Note 4 which offers a good
hope that Pentax offers the dif- was visible in the images the Pentax KP. In the same price small cameras, smartphones or action cameras like GoPro. high here. Results from the camera are mix of hardware, 1080p screen and battery
ferent size grips in India. On the they were still good enough to range, you can also consider the The idea is that the extra distance will offer a new perspec- surprising in good light. Even in low light, life. There are some older options that have
back is a 3-inch tilting display be shared online though. Video Canon EOS 80D that offers similar tive to your photos and videos. Some may even be fooled if you can take control over the settings, seen a price cut, namely Lenovo Z2 Plus.
which is handy for shooting recording quality was also features and performance but into thinking that its a drone point of view. The super early you can get some great results. And finally, the brand new LG Q6 with
however we did not like the thick great, but the fact that there is doesnt have the plethora of con- bird price is just US$39 and it ships anywhere in the world, As for the display, it is quite surprising to their excellent fullvision display is also
bezels surround the screen. The no 4k video recording was a let- trols that the Pentax has. starting November 2017. get an amoled display at this price most priced at just `15,000.


Rohit Honoured to be Vice-captain

The Mumbaikar, excited about getting back on the field, is ready to play behind-the-scene role
R Kaushik
Dravid recovering from jaw sur- have come in this period. ment as of now. Yes, itll be a good op-

gery and VVS Laxman nursing a Rohits ODI and T20I averages of portunity for me to get on to the field.
little under two months split webbing, both sustained on 42.46 and 31.72 far overshadow an As weve seen, the last few years have
back, Rohit Sh a r ma the preceding tour to Bangladesh. average of 37 in 21 Tests. Three of been really good, we just need to con-
slipped into his 11th year However, Rohit twisted his ankle on his seven Test fifties came in succes- tinue that.
in international cricket, the morning of the Test, throwing sive games against New Zealand at Rohit has plenty of experience of
the second active Indian Wriddhiman Saha an unexpected the start of the last home season, but leading sides out both in domes-
after Ishant Sharma. As lifeline. The Mumbaikar had to a thigh injury that necessitated sur- tic cricket and in the IPL, but he was
if in celebration of that accomplish- wait a further three-and-a-half gery and kept him out of the game for quick to point out that the IPL experi-
ment, the national selectors named years, debuting at Eden Gardens in nearly six months cut short his second ence wouldnt really help too much, es-
him vice-captain, for the first time, November 2013. He made a century Test coming. He warmed the bench pecially in a vice-captaincy scenario.
of the Indian side to do battle in five in each of his first two innings, but during all three Tests in Sri Lanka as Its a different ballgame completely,
ODIs and a lone T20I over the next in a career typically Rohit Sharma, India went with the all-round skills he insisted. IPL, and when you come
three weeks in Sri Lanka. those remain his only two tons in 21 of Hardik Pandya. Rohit doesnt like and play international cricket, its
That the selectors felt the need to Tests. talking Test cricket at this moment, completely different. But again, the
name a vice-captain at all for a bilat- More out of than in the Test side, and you can understand why. excitement and the energy level is
eral series, when they did not have a Rohit has found his calling in the However, hes more than happy to the same. So yes, nothing changes too
designated deputy to Virat Kohli for white-ball version. The only man share his emotions at being elevated much. Im the vice-captain here, there
even the Champions Trophy 2017 is a to have made two ODI double hun- to the vice-captaincy. Its a huge hon- I was the captain, so I was more in
matter of great interest. dreds, Rohit also belongs to a very our to be appointed front. Here Ive to play a little behind-
Rohits has been an interesting
journey of what is, and what couldve
select club of batsmen who have
made international centuries in all
More out of
than in the
as the vice-captain,
he said at Pallekele
the-scene role. But Ill be very excited
to step on to the field as the vice-cap- COA Seeks Removal of
BCCI Top Officials
been. As a fresh-faced and immensely three formats. He holds the record Test side,
International tain of the Indian team.
gifted 20-year-old, he caught the eye for the highest ODI score, 264. Rohit has
Cricket Stadium on Still only 30, Rohit has several good
in his very first year at the top level, Successive captains and team found his
W e d n e s d a y. T e n years ahead of him if he can steer clear
both at the World T20 in South Africa managements have walked extra calling in
years ago, I was only of injuries that have plagued him from
in 2007 and in the triangular series mile to accommodate Rohit, the the white-
thinking of playing time to time. While there might be an The Committee of on their undertakings and en-
in Australia the following February- move to elevate him to the top of the ball version
for India. Being the underlying sense of disappointment Administrators (COA) has sure that reforms mandated
March. Even at that early stage, it was batting tree in January 2013 open- vice-captain now feels that his Test career hasnt hit the high sought the removal of BCCI of- by this Honble Court is im-
obvious that Rohit was a Test star in ing up new vistas for Indian white- real ly, real ly good. notes it should have, Rohit is delighted fice-bearers, including acting plemented.
the waiting, only the presence of the ball cricket. The runs have flowed Whenever the opportunity comes, at at the successes he has courted over president CK Khanna and sec- The COA also mentioned that
luminaries holding back his eleva- in torrents since, with a consistency the first one-dayer which is on August the decade. The 10-year landmark and retary Amitabh Choudhary, the Supreme Court order on
tion. that is staggering. Between January 20, there will be some sort of role that the first-time vice-captaincy, coming for non-compliance of Lodha July 24 was deliberately mis-
His first shot at a Test debut of- 2013 and now, Rohit has amassed Ill need to play and Im looking for- immediately on the back of each other, Panel reforms. construed during the BCCIs
fered itself in February 2010 against 3,457 runs in 72 ODIs at 54.87; nine ward to it. Im not thinking too much have served to stoke his competitive In its fifth Status Report sub- Special General Meeting on
South Africa in Nagpur, with Rahul of his 11 tons, and 19 of his 31 fifties about it, I just want to enjoy the mo- juices every further. Wisden India mitted to the Supreme Court, July 26 where office-bearers
the COA has also sought the re- asked CEO Rahul Johri, the ad-

5 Transfer Storylines to Track

moval of treasurer Aniruddh ministrative staff and the legal
Chaudhry. In a scathing re- team to leave the meeting. The
port submitted in the apex COA also mentioned how the
court, the two-member COA BCCI treated Supreme Courts
comprising Vinod Rai and neutral expression of etc to
Diana Edulji has asked bring in a series of issues aimed
that governance, manage- at unravelling the core of the re-
With the deadline approaching, with less than two weeks to go, clubs are likely to push for what they want ment and administration forms mandated including dis-
of the board be handed over qualifications of office-bearers,
Miguel Delaney quite seen the Sanchez situation escalate to them along with a profes- constitution of Apex Council,
to the extent that he is put in a transfer re- sional group headed by CEO clear demarcation of functions,
quest from his desire to go to Manchester Rahul Johri till the elections powers, duties and obligations
The football season may have finally City, but thats possibly because Arsene are held. between pro-
opened, but the transfer window still Wenger hasnt shown any sign he will In the 26-page report (with The COA said fessional man-
hasnt closed, and the fact that Premier budge either. 174 pa ge s of a n nex u r e s) , the Supreme agement and
League clubs are currently considering the biggest takeaway was Court apex council.
trying to synchronise the two shows just WILL CHELSEA GET THE IMPROVEMENTS THEY that Khanna, Amitabh and order was T he repor t
how problematic that can be. Quite sim- SO BADLY NEED? Aniruddh should be removed deliberately a lso st ates
ply, there are a number of unresolved sto- Its already the story from the opening just like former BCCI presi- misconstrued that DDCA ad-
rylines and questions that have already weekend, all the more so because it al- dent Anurag Thakur and sec- during the ministrator,
complicated the start of the new campaign ready has shades of one of the biggest sto- retary Ajay Shirke, who were BCCIs SGM Justice (Retd)
for pretty much every club, but there are a ries of the last few years: the champions ousted for failing to ensure Vikramjit
few that have bigger influence than most collapse of 2015-16. While it remains open implementation of Lodha re- Sen, also pointed out during
to question whether some of the paral- forms. the SGM that BCCI is act-
WHAT WILL HAPPEN WITH VAN DIJK? lels with that Mourinho season as is only fair that the cur- ing contrary to the Lodha
This was a story that hasnt seen too much Antonio Conte himself put it will ac- rent office-bearers be treated Committee Report.
tangible movement in the last two weeks, tually lead to the same kind of situation in the same manner because The COA also submitted that
but that actually became all the more again, the reality is it will be much more a further period of six months apart from issues pertaining
important because of some of the calami- likely if the Italian doesnt get the players have elapsed since the said to membership and selection
tous defending on show in the Premier he needs. The 3-2 defeat to Burnley made of f ice -bea rers submit ted committees (reducing it from
Leagues opening weekend especially that clear. He simply needs a lot more their undertakings and re- 5 to 3), other issues identified
Liverpool and Chelseas. Both of them and depth, and wants at least four players: two forms mandated by Honble during the SGM held on July
Manchester City want Virgil van Dijk but wing-backs, a midfielder, a forward and Court have still not been im- 26 form the fundamental core
only one of those pursuits has so far been ideally another centre-half. plemented. It is clear that of the reforms mandated by
publicly prominent, and that is because current office-bearers are the Supreme Court judgement
Liverpool have had to apologise for an il- WHAT WILL THE BIG SPANISH CLUBS DO? Premier Leagues money so discussed is Virgil van Dijk (above) Cesc Fabregas not in position to make good of July 18, 2016. PTI
legal approach. It means that they have Despite what happened with Neymar, the that none of the top clubs are satisfied with
to tread very carefully over what they do subsequent stepping up of Barcelonas in- their business yet. All have signings they
next, even as Van Dijk has put in a trans- terest in Coutinho and the ripples it caused want to make, and it is that that could yet
fer request. That makes it likelier he will re-emphasised that they remain at the top see some late swings, the Robinho-style
eventually move. of the transfer market food chain, and are late buy that really wows in this window.
still capable of the biggest waves even Mourinho still wants a forward for United
WILL COUTINHO AND SANCHEZ STAY WITH if PSG are now likely to join them there. and, bar Liverpool switching targets in
THEIR CURRENT CLUBS? Real Madrid meanwhile still want to bring their pursuit of Naby Keita from Red Bull
Two situations that could disproportion- in Kylian Mbappe or a similar young at- Salzburg or Tottenham Hotspur suddenly
ately transform the seasons of Liverpool tacker, and that could yet see Gareth Bale breaking out, it is that situation that pos-
and Arsenal, so its just as well that both go despite his repeated assertion that he sibly holds the greatest potential for a
remain adamant those situations will wants to stay. And if Barcelonas chase for late eye-catching move. It isnt out of the
simply not change. Both players will stay. Ousmane Dembl fails, an option could question for Chelsea to compensate for the
Liverpools Fenway Sports Group owners then be Christian Eriksen. summer with another big move to keep
are said to be unmoving in their stance, Conte happy, but they all have money, and
and are 100% determined to not sell IS A SURPRISE STILL IN STORE? all have potential to do something unex-
Coutinho to Barcelona. Arsenal have not The irony of a summer that has seen the pected. The Independent

Head Knock
Wont Stop
Bangladesh Tour
Australian vice-captain David
Warner is expected to be fit
for the upcoming Bangladesh
tour after retiring hurt when
he was struck in the neck by
a bouncer during a warm-up
match. The opener was hit by a
Josh Hazelwood delivery in a
chilling blow Tuesday that saw
him drop to his knees and let
go of his bat, with captain Steve
Smith rushing from slips to check
on his deputy. Appearing shaken,
Warner removed his helmet and
immediately walked off the field
leaving his bat behind. Cricket
Australias news site
au said the fiery left-hander had
passed a concussion test and
would be available for the tour
of Bangladesh.

BFCs Johnson to
Miss AFC Cup
Bengaluru FC announced their
25-member squad for the AFC
Cup knockout rounds to play
North Korean side April 25 SC in a
weeks time. The squad has looks
drastically different following
the Indian Super League draft.
The big difference though is
that defensive mainstay John
Johnson is set to miss the rest
of the Blues AFC Cup campaign,
reportedly owing to personal


Coleman & Co. Ltd. by R.J. Prakashan at 40/1, S&B
Towers, M.G. Road, Bengaluru-560 001. (Phones:
Office: EPABX - 080-42200000, Editorial
080-42200161/42200171, Fax: 080-4220 0100)
and printed by him at Bennett, Coleman & Co.
Limited, No 9/10/11-A, 4th Main Bommasandra
Industrial Area, Hosur Road, Bengaluru - 560 099,
Ph: 080-42200500, Registered Office Dr Dadabhai
Naoroji Road, Mumbai - 400001.EDITOR
(Responsible for selection of news under PRB Act).
- All rights reserved. Reproduction in whole or in
part without written permission is prohibited.
Articles reprinted in this issue from Business Week
International (USA) are copyright 1990 by McGraw
Hill, Inc.
REGD. NO.CPMG/KA/GPO-31/200C3-05 RNI No.
VOLUME 32 No. 218