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THE ECONOMIC TIMES


WWW.ECONOMICTIMES.COM

BENNETT, COLEMAN & CO. LTD. NEW DELHI / GURGAON TUESDAY, 5 DECEMBER 2017

First-time Car Buyers go Premium


Newbie car buyers are choosing premium options in a pronounced
show of upward consumer mobility BRANDS & COMPANIES5

Custom-made Offer Likely for


Imports: Enter Now, Pay Later key measures could be frontloaded in the
RUNUP TO Call Of Duty budget, another official said.
Goods are currently released after as-
THE BUDGET Imports could be Proposal part of major sessment and payment of duty. If this sy-
cleared without Customs revamp to speed stem is reversed, goods will be released
To speed up movement of payment of duty up goods first with assessment of duty liability ta-
movement king place subsequently.
Duty assessment
goods, India may do away & payment later Release of goods without determina-
tion of duty would be hugely positive for
with the need for upfront
146/190 the industry, said Ajay Sahai, director
general of the Federation of Indian Ex-
duty payment for imports Indias rank on Trading Across port Organisations (FIEO). Of the 16%
Borders in World Banks ease logistics cost in India, detention and de-
of doing business ranking murrage contributes as much as 4%.
Deepshikha.Sikarwar As for advance rulings, he said this will
@timesgroup.com bring about predictability for businesses
sures aimed at relaxing the Customs re- but pointed out that e-filing should be al-
New Delhi: India may release imported gime for businesses. Other measures lowed and applications dealt with speedi-
items without any upfront duty payment could include allowing traders to know ly. India is ranked 146 out of 190 countries
as part of a revamp of the Customs fram- their tax liability in advance even for on the World Banks ease of doing busi-
ework to speed up movement of goods existing transactions. ness ranking on the trading across bor-
across borders, which can currently take A number of changes could be taken ders measure and the government feels
more than a week. Such a move would up on priority basis in the upcoming this can be improved substantially to lift
provide a massive boost, industry said. (February) budget, said a senior go- the overall rank. India improved its ove-
The upcoming budget, the first after vernment official. rall rank to 100 this year from 130 last year.
the rollout of the goods and services tax The government is also working on an
(GST), is likely to include several mea- overhaul of the Customs Act but some Border Compliance Takes 267 Hours12

Asian Recruiters Go Big on Tech Talent


and Youth Factor, Beat US Cos at IITs
Top institutes see spurt in On A Hiring Spree
global offers, a bulk of them Global offers have
gone up
Overseas offers had Mercari, Murata,
NEC Corporation
gone down in FY17
coming from Japan, Taiwan, significantly at
several IITs
A large chunk of
and Taiwan
Semiconductor
these offers has
South Korea and Singapore including Madras,
come in from
are among those
hiring in good
Roorkee, Kharagpur,
Asian cos,
Bombay & Kanpur numbers
Sreeradha D Basu particularly Japan
& Prachi Verma Dadhwal
made more US offers than last year has overseas offers have more than trebled at
Mumbai|New Delhi: Asia appears to led to a spurt in overall overseas place- IIT Madras and IIT Kharagpur. IIT Mad-
have pulled ahead of US in the battle for ment offers, despite big-ticket recruiter ras has seen a rise in international offers
talent at the Indian Institutes of Techno- Oracle not hiring for US roles this year. to 22 from six in the first three days of
logy (IIT) placements, with the bulk of International offers had plummeted at placements. At IIT Kharagpur, numbers
international offers coming from Japan, the IITs in 2016-17. Based on data collated have jumped to more than 30 from nine.
Taiwan, South Korea and Singapore. by ET during the first few days of final
This and the fact that Microsoft has placements that started December 1, Tapping Potential12
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THE ECONOMIC TIMES


WWW.ECONOMICTIMES.COM

BENNETT, COLEMAN & CO. LTD. NEW DELHI / GURGAON | 24 + 4 PAGES OF ET PANACHE | .` 3.00 OR .` 7.00 ALONG WITH THE TIMES OF INDIA TUESDAY, 5 DECEMBER 2017

GOP Push to Avoid US Govt Shutdown India Tested in the Slips Department
Republicans are moving toward passing a stopgap fix to avoid a Sloppy slip catching by India allows Lankas Mathews and Chandimal
govt shutdown, but the path is tricky AROUND THE WORLD 15 to score tons and keep the hosts at bay SPORTS: THE GREAT GAMES 22

RaGa Set to be
Cong President
ADHIA TO REVIEW REVENUE POSITION ON DEC 9

CBEC Calls for a Big-Ticket Exits Set ADIA Pumps


$100 million
into KKR
Rahul Gandhis
elevation as Con-
gress president was
all but sealed on
Reality Check to VC Box Office on Fire
Boost GST Mopup Investors garner record Bumper Harvest
Monday save the
technicality of a Abu Dhabis sovereign
formal declaration. A $2.55-b returns in 2017, Exits for 2017
SoftBank has been wealth fund has put in
the largest spender IPOs BY INDIAN about $100 m in lending
record 89 sets of authorised to contact the as- led by stellar payouts year-to-date have this year, picking STARTUPS HAVE RAISED JUST
business of KKR, reports
nominations 31 sessees personally or even vi- jumped past 2015
Seeks detailed sit their premises. from Flipkart, Paytm deals and 2016 numbers,
up stakes in
Flipkart and Ola $74 MILLION Indulal PM. The funds will
more than the 58 nominations that had
Indias GST collections in Oc- driven primarily IN 2017 COMPARED WITH
been filed for Sonia Gandhis re-elec- field reports with tober fell to . 83,346 crore from by secondaries and
from Tiger Global,
shelling out about $602 MILLION
be used to expand credit
tion last time were filed proposing the over . 92,000 crore in September. Biswarup.Gooptu and corporate loans
special focus on Moreover, the Centres share @timesgroup.com
M&As $1.7 IN 2016
portfolio in India.7
candidature of the 47-year-old scion of BILLION
the Nehru-Gandhi family for the top top taxpayers has been low after payment of
compensation cess to states. New Delhi: Stellar returns from in- in the process
party post. PAGE 2 The total central GST collection vestments in Flipkart and Paytm Industry insiders expect that 2018 will once again
HC Upholds
Deepshikha.Sikarwar
@timesgroup.com
in the first four months of the
new tax July,
have boosted the value of exits by
venture capital firms this year
see exits primarily driven by secondary transactions FTIL-NSEL
Trai Moots Curbs on Pre-launch Tests
Trai on Monday recommended rules of network New Delhi: Amid concerns Officers asked
August, Sep-
tember and Oc-
which touched a record high and al-
so outpaced the quantum of fresh in- While Indias largest online reta- multiple bets on multiple people,
Merger Order
testing before an operator commercially launch- over slowing goods and servi- to submit tober has be- vestments. iler Flipkart has seen existing sha- but want to take less risk, and are
es mobile services, proposing clear limits on ces tax (GST) collections, the analysis of pre en . 58,556 crore. Investors garnered returns total- reholders like Tiger Global and ready to pay more of a premium,
Central Board of Excise and and post-GST The govern- ling $2.55 billion (.`16,965 crore) in Accel rake in an estimated $1 bil- said Ronnie Screwvala, founder of
number of trial subscribers to be onboarded and 2017 while new deals brought in ca- lion, Paytm has seen share sales Unilazer Ventures, which has onli-
Customs (CBEC) has sought de- payments of ment is looking
a 90-day period for the test phase. tailed field reports with a speci- top 100 to avoid any re- pital worth about $1.1 billion worth over $600 million by inves- ne eyewear retailer Lenskart in its
Companies: Pursuit of Profit 16 al focus on the top taxpayers. taxpayers in venue shortfall (.`7,318 crore) to one of the worlds tors like SAIF Partners, Saama Ca- portfolio, and continues to garner
Finance secretary Hasmukh their circles as its keen to most dynamic entrepreneurial pital and Sapphire Ventures. significant interest from seconda- A Bombay HC bench has
Adhia will review the revenue stick to the fi- hotspots, where venture firms ha- The trigger for the secondary ry-focused investors. dismissed 63 Moons
Market Tracker position with senior officials in scal deficit roadmap while ve for long been anxious to cash transactions have been investors
Technologies plea chal-
the department on December 9. nurturing an economic revi- out from high-profile investments. who now no longer want to place Booster for Tiger Global12
LAST % CHANGE lenging the governments
Field officers have been asked val. The fiscal deficit was at
Nifty 10,127.75 0.06 to submit a detailed analysis 96% of its full-year target by order to merge its sub-

Parekhs Independence Key for Infy


comparing tax payments, befo- the end of October. sidiary National Spot
Sensex 32,869.72 0.11 re and after GST was imposed, ET has seen the letter sent by
of the top 100 taxpayers in their CBEC directing field officials Exchange Ltd with itself
BSE Midcap 16,742.60 -0.09
jurisdictions as the govern- to analyse GST collections in in public interest.9
BSE Smallcap 17,924.37 -0.52 ment seeks to understand the detail. `996.95 before closing at `985.30, up
Re/US $ 64.38 0.14
reasons for collections slo-
wing. The officials have been Monthly Turnover Details12
Investors to watch out 2.8%. Parekhs appointment was
announced on Saturday.
Key Reservations Common
Gold Std* 30,050.00 -0.33 for steps taken by new Fund managers and analysts who
spoke to ET said the decision to ro-
ANALYSTS WORRY
ABOUT CEOs INDEPENDENCE
Rules to Value
Silver (`/kg) 39,500.00 -1.00
Back To Basics REVENUE SLOWDOWN CEO to bring co back pe in Parekh may have removed the
overhang on the stock for now but it
FROM PROMOTERS
Stressed Loans
Brent ($) 63.08 -0.93 PAREKHs presence in
`83,346 CR on track, prevent exits
Lower GST Revenue Gets is unlikely to run up in a hurry. Bengaluru could see him
*(`/10gm) Compiled by ETIG Database Tax Department Moving In August, a lea- facing indirect interference
collection in October, COO MAIL dership crisis trig-
FOCUS ON TOP TAXPAYERS Jochelle Mendonca
down from `92,150 crore BRINGS gered by the exit of Experts feel CEOs appoin-
CBEC has called Officials also & Nishanth Vasudevan RELIEF then chief executi-
in September tment removes overhang
officials to asked to look PAGE 6 ve officer Vishal on stock, value is unlikely
Do you think India has necessary review GST into input tax Centres overall kitty in Mumbai: Investors and analysts Sikka had soured to go up quickly The finance ministry is
ecosystem to promote startups? payments of top credit claimed first four months: are seeking clarity on new Infosys investor sentiment.
100 assessees under GST
working with PSBs to
chief executive officer Salil Pa- Though the company managed to Concerns over board
48% 48% 4% A detailed
anlysis sought
`58,556 CR rekhs vision for reviving growth, repair the damage by bringing for- composition persist
frame common rules for
valuation of stressed
YES NO CANT SAY THESE ARE the role of the companys founders mer chairman Nandan Nilekani
TODAYS QUESTION TO BE from each ` ` ` and the possibility of further se- back, the stock has not revisited its Parekh, who will take assets for faster resolution
`
Do you think the NPA crisis in private COMPARED commissionerate nior management exits in the wake 52-week high of `1,045, which it tou- over on Jan 2, is
` of loans given by consorti-
sector banks is understated? WITH PRE-GST ` of his selection. Still, investors we- ched in January. expected to retain
www.economictimes.com PAYMENTS re welcoming the stock rose as Infosys existing strategy um of lenders, reports
much as 4% to the days high of Nilekani Can Strike a Balance12 Dheeraj Tiwari. 13
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2  Pure Politics THE ECONOMIC TIMES | NEW DELHI / GURGAON | TUESDAY | 5 DECEMBER 2017

Rahul ji has been the darling of Con- I feel the Congress party has become a
gress...Rahul Gandhi will carry on the burden. After Rahul Gandhis elevation,
great traditions of the Congress party this burden will end on its own
MANMOHAN SINGH FORMER PRIME MINISTER YOGI ADITYANATH UTTAR PRADESH CHIEF MINISTER

Rahul Raga for Congressmen NEW ERA Cursor


A record 89 sets of
First Smooth Loss of Power
nominations filed;
formal announcement Transition in Confers Rahul with
only on December 11 33 years Larger Responsibility
Our Political Bureau CL.Manoj@timesgroup.com have the maturity to allow for-
mal democratic procedures
New Delhi: Rahul Gandhis eleva- New Delhi: Rahul Gandhis achieve the right balance be-
tion as Congress president was all i m mi nent elevation as tween competing internal aspi-
but sealed on Monday save the tech- Congress president will mark rations. The Congress makes do
nicality of a formal declaration. A the first bloodless change of with the institution of the high
record 89 sets of nominations 31 guard in 33 years for the par- command. The BJP has out-
more than the 58 nominations that ty. The last four leadership sourced that function to the
had been filed for Sonia Gandhis re- changes in Cong ress hap - TK ARUN RSS, which has chosen every
election last time were filed pro- pened due to two assassina- single BJP president.
posing the candidature of the tions and two evictions. What changes, when Rahul Rahul Gandhis attempt to bring
47-year-old scion of the Nehru- When Rahul Gandhi succeeds Gandhi takes over as president of organisational reform in the par-
Gandhi family for the top party post. BEGINNING THE DAY WITH BLESSINGS: Congress vice-president Rahul Gandhi with former President his mother Sonia Gandhi, he the Congress party? He succeeds tys youth and student wings had
Gandhi gave his signatures of Pranab Mukherjee before filing his nomination papers in New Delhi on Monday PTI will be facing a bigger electoral, his own mother, after all, and has come a cropper as he promoted
consent on each paper during the organisational and political been the de facto leader since he organisational elections without
day-long filing of nominations at challenges than his mother in- became party vice-president in fixing the electoral base. Rahuls
the 24, Akbar Road Congress head- herited as party chief. The cir- 2012. The Congress has lost a series later attempts to appoint his cho-
quarters in Delhi before the chief Poonawalla can cumstances of their elevations of elections since then. Why ex- sen leaders on state units of the
returning officer, Mullappally
Ramachandran, and his colleagues
in the partys central election au-
thority, Madhusudan Mistry and
We Dont Want this Contest, Unlike
Mughal Era: Aiyar
are entirely different. Sonia
Gandhi, who had turned down
an unanimous CWC appeal to
assume leadership after her
pect any dramatic shift in the par-
tys fortunes or its ability to coun-
ter a rampaging BJP, just because
he takes formal charge of the par-
Congress also met with similar
failure. He had to drop most of
them and replace them with local
leaders who better represented
Bhubaneswar Kalida.
Aurangzebi Raj: Modi NEW DELHI: When
asked about a
self-proclaimed
husband was assassinated in
1991, finally took charge in 1998
after CWC dramatically sacked
then party chief Sitaram Kesri
ty? The answer is accountability.
The rising chorus within the
Congress, with leader after lead-
er calling on Rahul Gandhi to
the will of Congressmen.
Sonia Gandhi did the party a ma-
jor disservice by outsourcing the
partys emancipatory imagination
Do BJP presidents get Congress sup- and catapulted her to the top take over as the party president, to an external advisory council.
elected? Did BJP Press Trust Of India
BATTLE FOR porter Shehzad Poonawalla
alleging rigging in organisa-
post. Kesri is the only serving
Congress chief who was sacked
signalled not sycophancy but
growing impatience with the
Her son is unlikely to replicate the
mistake. His championing of the
presidents get elected
through a ballot
Dharampur (Gujarat): Prime
Minister Narendra Modi on GUJARAT tional polls, party leader
Mani Shankar Aiyar said:
in the 132-year history of the
party. The credit for finding a
leaders penchant for playing
hooky. This is what being presi-
rights of subaltern groups in soci-
ety, tribal communities, Dalits,

2017
Monday likened the imminent ele- constitutional way out is widely dent of the party means: no more persecuted Muslims and impover-
process? Let BJP vation of Rahul Gandhi to dynastic
When Shah Jahan came in attributed to Pranab Mukherjee whimsical sabbaticals from the ished farmers is both personal con-
answer that first succession of Mughal rulers, and place of Jahangir did any who drafted an innovative reso- battleground, no more indul- viction and
castigated Congress for abandoning election happen? When Au- lution, unanimously and eagerly gence of real or imagined dislike the product of
public modesty by deciding to rangzeb came in place of passed by CWC to oust Kesri. of power. Politics is the pursuit the dynamics of
make a person who is out on bail in Shah Jahan did any election Kesris elevation in 1996 as of power, mediating between the democracy. An in-
a graft case its president. Congress a compromise candidate, state and the people while seek- clusive vision of so-
happen... But...in a democra-
has abandoned all public modesty... preferred by his predecessor ing to achieve larger goals for ciety is not just in-
as it is going to make a person who is cy elections are held. I... Narasimha Rao, was the cul- state, society and the nation. It is Sonia did herent in Indias
out on bail in a corruption case its openly invite Shehzad mination of a raging power relentless and multidimensional, the party a Constitution but
president, Modi told a rally here. Poonawalla to file the nomi- struggle within, after the party, unsparing and unsentimental. major dis- also what a party of
Does Congress accept that it nation and contest. OPB under Rao, was defeated in the It is but natural to see Rahul service by the Opposition has
Kamal Nath is a one family party? We dont want
this Aurangzebi Raj (Aurangzebs
1996 polls. Almost all top leaders
had then stood united in seeking
Gandhi as an individual: a mus-
cular man with a guileless, dim-
outsourc-
ing partys
to summon today
vis--vis a political
AICC General Secretary
rule)....For us, country comes first, Raos exit. A Delhi court charge- pled smile that makes him look emancipa- regime in which
125 crore people of this country are Modi ji is suffering sheeting him in a corruption younger than his age, a cam- tory imagi- these subaltern
Former PM Manmohan Singh said: our high-command, PM Modi said. from Rahul Gandhi case, in fact, gave Rao chance to paigner with lots of energy and nation to an groups are under at-
Rahul Gandhi will carry on the great Referring to BJPs resounding vic- bow out on moral grounds. But no fear, not even of formidable external tack and those who
traditions of the Congress party. tory in UP civic polls, Modi said phobia, Modi ji is ob- Rao was forced out of Congress Narendra Modi, seemingly sin- advisory overtly support
Although nominations are expect- even Congress men think they cant sessed with Rahul ji. A Parliamentary Party leadership cere and articulate, even if bereft council them are branded
ed to have been filed only for Gandhis harm BJPs prospects in the 2019 prime minister should too and even denied a ticket to of eloquence and command of anti-national.
candidature, Ramachandran said Lok Sabha elections. not lower the level of contest in 1998, with Kesri pub- the local idiom, and as capable of And Gandhi is capable of learn-
that only after the scheduled scrutiny So, the PM said, the thinking in licly declaring him guilty of not cringingly inane propositions as ing. Earlier, his pro-poor rhetoric
of nomination papers on Tuesday it Congress is that if it can defeat BJP discourse to such lev- protecting Babri Masjid. of telling barbs like suit-boot-ki held out driblets of state bounty.
can be said how many candidates are in Gujarat, people of other states el. Modi ji should an- Raos elevation followed two ac- sarkar, which has the ruling par- His Berkeley address spoke of
in the fray. In the most likely event will listen to them. swer the real issues cidents. First, the assassination ty on the defensive even today. empowering the poor to take
of Gandhi alone being in the fray Modi also took potshots at Rahul of Rajiv Gandhi mid-polls, and, But it is not the individual that part in globalised growth. This
after the scrutiny of papers, he Gandhi over his frequent visit to tem-
that Rahul ji second when then vice-president appeals to the Congress. is welcome progress.
and other
PTI

would become the de facto party ples during the poll campaign. In of India, Shankar Dayal Sharma Yes, the Gandhi name matters, but With great power comes great re-
president-elect, but the formal an- earlier days, there used to be a compe- Congress the first choice of Sonia Gandhi not in the vain hope that the name sponsibility even Spiderman
nouncement will happen only on tition to show how secular they are. If through the deception (of visit- leaders and her advisor PN Haksar would still evoke glories of leader- knew that. With great loss of pow-
December 11, after the time for one says that I am secular, the other ing temples for Hindu votes). for PM and Congress chief ship and sacrifice for the 65% of the er comes greater responsibility.
withdrawal of candidature is over. will say he is four kg more secular, the Asserting that he never faced any have turned down the offer on health population who are below 35. This reality of competitive poli-
Outgoing party chief Sonia Gandhi, third will say he is six kg more secular allegation of corruption in his long raised grounds after Aruna Asaf Ali Gandhi matters within the tics is what will teach Rahul
Manmohan Singh and senior leaders and the fourth would claim he is 10 kg public life as chief minister and and K Natwar Singh conveyed Congress and the high commands Gandhi all the politics and all the
such as Ahmed Patel, AK Antony, more secular. But what is the competi- prime minister, Modi asked the au- the message to him. Rao thus re- job is to leverage that importance to skills his critics lambast him for
Ghulam Nabi Azad, Kamal Nath, tion for before 2017 (Gujarat) polls? dience: Have you ever read in any turned from retirement in 1991 strike the right balance among dif- lacking. By becoming the leader
Anand Sharma, SK Shinde, Sheila After 70 years where all they have to newspaper that I have taken any to lead the party and the nation. ferent sectional and individual am- of the national Opposition, Rahul
Dikshit, Mohsina Kidwai, Ambika go to? Modi asked the gathering that thing? Have you read that Modis Earlier, it was Indira Gandhis bitions and agendas that seethe Gandhi gets his hands deep and
Sonia, Kumari Selja and Randeep shouted in one voice temples. brother or any relative took money? Randeep Surjewala assassination that elevated Rajiv within the Congress, to allow the dirty in the clay with which the
Surjewala were among those who He said the people of Gujarat Have you read that son-in-law of our Congress Chief Spokesperson Gandhi to PMship and Congress party function as a coherent whole. nations history is shaped. May
proposed Gandhis candidature. were not fools and would see family has taken any money? presidentship in 1984. Political parties in India do not his handiwork not be misshapen.

Manifesto says Congress would introduce a bill under Article 46 which


BATTLE FOR GUJARAT 2017 envisages reservations for socially or economically deprived classes

Cong Promises Patidar Quota, Rebels Queer the Pitch for


Cut in Petro Prices by `10/l Congress in North Gujarat
Minority ministry, more gau shalas also promised Party won more than half the seats in the region in 2012
To end contract A Manifesto For All At least 25 rebels are On A Turning Turf?
system in govt jobs left in the fray in 19 6 DISTRICTS OF NORTH GUJARAT:
Gandhinagar, Banaskantha, Sabarkantha, Aravalli, Mehsana & Patan

ABP News- and make workers on constituencies; Cong


GANDHINAGAR
CSDS Opinion contract permanent won 17/32 seats in 2012 (CONG HOLDS
3/5 SEATS)
Poll on Gujarat DP.Bhattacharya@timesgroup.com Nidhi.Sharma@timesgroup.com
BANASKANTHA
(5/9 SEATS)
SABARKANTHA
VOTE SHARE
PTI

Gandhinagar: The Congress Ahmedabad | Vadodara: Rebels (3/4 SEATS)


manifesto for Gujarat has prom- Gujarat Congress Manifesto A special investiga- are threatening to queer the pitch ARAVALLI
ised to accommodate demands promises for the Congress in the crucial (ALL 3 SEATS)
president Bharat- tion team will probe
of the Patidar community, even sinh Solanki said SINCERE allegations of nancial North Gujarat, where the party MEHSANA
IMPLEMENTATION (2/7 SEATS)
while making some special pro- the manifesto was irregularities during holds more than half the seats.
BJP CONGRESS visions for minorities. The mani- OF COW There are at least 25 rebels left PATAN
designed with BJP rule in the state (1/4 SEATS)
PROTECTION SEATS WHERE REBELS ARE CONTESTING:
43% 43% festo promised a separate minis- everyone in mind ACT
in the fray in 19 constituencies in
try for minorities and implemen- the state, after the last date of with- Radhanpur, Chanasma, Visnagar, Bechraji, Kalol, Visnagar, Bhiloda & Prantij
tation of the Sachar Committee drawal of nominations ended on
recommendations. FAST-TRACK COURTS give all rights given to Other Thursday last week. The worst af- BANASKANTHA TOUGHEST Jignesh Mevani in Vadgam has
PROJECTION The manifesto promises cre- Backward Classes to communi- fected is North Gujarat, where 16 complicated matters internally.
(TOTAL 182 SEATS) ation of fast-track courts to tack- Manifesto ties specified under Article 46. rebels in 13 constituencies have Toughest chal- There are two Cong ress reb -
le crimes against women, roll- Article 46 of the Constitution refused to withdraw their nomina- els against Mevani Ashvin
BJP 91-99 back of petrol and diesel prices promises crea- envisages reservations to help tions against the official candidates. lenge is in Ba- Parmar and Balkrishna Zirawala.
by `10/litre, ending the contract castes or classes who are socially The region comprises 32 seats span- Interestingly, Vadgam is consid-
CONGRESS 78-86 system in government jobs and tion of fast- or economically deprived. ning six districts of Gandhinagar, naskantha dis- ered a safe seat for Congress
OTHERS 3-7 making workers on contract The manifesto also promised B a n a sk a nt h a , S aba rk a nt h a , since the party had won this seat
permanent and providing `4,000 track courts to tackle sincere implementation of Cow Aravalli, Mehsana and Patan. The trict where Cong party is in 2012 by a margin of 21,000 votes.
per month as allowance for the Protection Act and setting up Congress had won 17 of the 32 seats If Saurashtra is considered the
unemployed youth. crimes against women of panjra polls (gau shalas) in and the BJP 15 seats. What makes facing rebels in 5 seats game changer in the first phase,
When asked specifically about every moffusil area with partici- the contest keen is the fact that some North Gujarat is expected to play
promises for minorities, Gujarat
ALLOWANCE FOR YOUTH pation of voluntary organisations seats, like Kankrej in Banaskantha Tharad, Vadgam, Deesa, Deodar that role in the second phase of elec-
Congress president Bharatsinh
Solanki said the manifesto was
Congress and philanthropists.
Bha ratsi n h Sola n ki said
district, were won by Congress with
narrow margins of just about 700
and Kankrej constituencies. In
Tharad, the party gave the ticket
tions. Congress is banking on the al-
liance partners such as Hardik Patel,
designed with everyone in mind.
Solankis team gave details of the
promises Congress will set up a special in-
vestigation team to probe allega-
votes. The presence of a rebel can-
didate is likely to make the contest
to BD Rajput instead of Mavjibhai
Patel, who had narrowly lost in
Alpesh Thakor, Mevani and tribal
leader Chottubhai Vasava to tilt the
welfare plans for various castes,
including Patidars and Devipujaks.
`4,000 per tions of financial irregularities
during the BJP rule in the state,
more difficult for Congress.
The toughest challenge is in
2012 to BJPs Parbatbhai Patel
by 3,473 votes. Patel has refused
balance in its favour in the region. If
there are three rebels, there is also an
T he ma ni festo said t hat month as allowance for especially irregularities worth Ba naska nt ha dist rict where to withdraw. Congress decision additional factor of Hardiks move-
Cong ress would introduce a over `100,000 crore as highlighted the Congress is facing rebels not to field a candidate and sup- ment. There is also Mevanis work in
bill under Article 46 which will the unemployed youth in CAG and other reports. on f ive seats. T hese i nclude port activist-turned-politician this area, said a Congress leader.
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4  Pure Politics THE ECONOMIC TIMES | NEW DELHI / GURGAON | TUESDAY | 5 DECEMBER 2017

BATTLE FOR GUJARAT 2017 QADIANI ANGLE Is Pak army chief under
siege from former & serving colleagues?
TOO MANY RULES FOR COMFORT Bhils, Kunbis and Dhoria Patels of Dang and Navsari
say authorities creating hurdles and harassing them by citing rules
Netas Fiddle as
Tribals Say Local Red Tape Military Meddles in
Holding Up Govt Schemes Ambika and Poorna rivers for irrigation.
Unrest Across Pak down on the demonstrators. Justice
Shaukat Aziz Siddiqui observed that
In Dharampur, shopkeepers Voices from the Ground In Dharampur, shopkeepers say their
business has suffered due to Goods and
the army, which is required to act in
aid of the civilian government, when
Govt programmes Local authorities Those selling tiles and other Services Tax. Those selling tiles and other asked to do so, had clearly over-
say their business benet only the trouble the poor when building material complain building material complain that their sales stepped its constitutional authority
that their sales have been have been reduced by half in the last three and role, by becoming a mediator be-
has suffered due to GST urban and well- they try to open Jan
reduced by half in the last months as supplies from Morbi and other tween the civilian government and
off people Dhan accounts
three months as supplies areas have been low. Earlier our business the demonstrators. Predictably, the
Tribals have to pay a high price for from Morbi and other areas suffered for three months after demoneti- ecstatic demonstrators were over-
RakeshMohan.Chaturvedi@timesgroup.com BASIC FACILITIES LIKE LPG CYLINDERS sation, said a local trader. G PARTHASARATHY joyed and showered praise on the
have been low
Most tribals in the area have to go to neigh- army!! Media and public reaction at
Da ng/Navsa r i : The tribals living bouring Maharashtra or to Dharampur As the time for general elections in the incompetence of Abbasi govern-
in South Gujarat have remained de- Only ` 30,000 has been put in my further up north in Gujarat in search of Pakistan, scheduled for 2018 ap- ment was furious. The Express
prived of many social welfare schemes employment as labourers in fields. proaches, its the army, more than the Tribune observed in an Editorial:
bank account under Pradhan Man-
launched by the Narendra Modi govern- The Bhil and Kunbi tribes that reside in political parties, which is positioning The deal between the State, both ci-
tri Awas Yojana. I have bought
ment as well as the state dispensation Dang district are not impressed with Modi. itself to see that a government of its vilian and military facets of it, and
due to red tape and are not impressed bricks. I am waiting for He builds roads and airports. Of what use choice assumes office, after the elec- the Faizabad protesters, is a devastat-
with the prime ministers speeches as the rest of the money, are those to us? said Mangal Gavit. tions. Nawaz Sharif, the only ing blow to the legitimacy and moral
they feel his programmes benefit only GOVIND, a Dhoria Patel Many of them said they would vote for Pakistani politician, who has a strong standing of the government and all
the urban and well-off people. of Singhad village in the Congress. Mangalbhai Gavit, the enough political base in the country

ZAHID
T he gener a l c ompl a i nt i n D a n g , Navsari district Congress candidate and the MLA, is and particularly in Punjab, has been
Vansadaa and Dharampur constituen- said to be very accessible and down to debarred from elections, by the high-
WEAK GOVT, STRONG ARMY
cies in Dang and Navsari districts is that
local authorities trouble the tribals when
Dhoria Patels of Dang and Navsari bitter
and they say they are likely to vote for
FEELING OF NEGLECT earth. Here people vote more for the
individual than the party. Mangalbhai
er judiciary, which held Sharif guilty
on charges of unaccounted earnings. With Zardari &
they try to open their Jan Dhan accounts,
that they have not been given funds un-
Congress this time.
Only `30,000 has been put in my bank ac-
Bhil and Kunbi tribes does not have any ego and attends even
small functions, Vinay Choriya, a local
The team appointed by the judiciary
to investigate the charges against
Nawaz weakened,
der the Pradhan Mantri Awas Yojana, count under Pradhan Mantri Awas Yojana. in Dang district are dhaba owner said. Sharif strangely included military the army can help
and that they have to pay a high price for I have bought bricks. I am waiting for the Vijay Patel, the BJP candidate had lost intelligence officials, with no investi-
basic facilities like LPG cylinders which rest of the money, Govind, a Dhoria Patel not impressed with in 2012. People recall that though he had gative experience. With Asif Zardari form a weak coalition govt
has seen an increase in cost four times
in the last one year.
of Singhad village in Navsari district, said.
The tribals grow danger (rice), naagli,
Modi. He builds roads and air- won the 2007 Assembly poll he lost in 2012
as he had not worked for the constituency.
also facing corruption allegations,
the only other national party, the PPP, led by Imran Khan
Aut hor it ie s i n si st i n g on A ad h a r
or creating hurdles citing rules and
tuar, urad here but it serves only to feed
their families and there is nothing left
ports. Of what use are those to Others say though their Jan Dhan ac-
counts were opened, the bank wants them
is feeling the heat in its only remain-
ing stronghold in Sind. It has lost its
laws have made the Bhils, Kunbis and to sell. They are dependent on Khapri, us? says Mangal Gavit. to maintain a minimum deposit of `1,000. influence almost irreparably in
Punjab, from where over 60% of
Parliamentarians are elected. Two
major political developments oc-

Congress Talks curred in Pakistan this month, which


have a bearing on the coming general
elections. The first was in Karachi,
where a serving Army Major

Voting Machines General,Mohammed Saeed, stitched


together a controversial political deal
between the mass-based, but divided

15 years later: Two burnt coaches of Sabarmati Express at Godhra railway station.NIdhi Sharma

TWISTS & TURNS Sitting Congress MLA CK Raulji has


in Tribal Areas MQM and a breakaway faction, the
Pakistan Sarzameen Party. This
deal seeks to undermine the London
based MQM Supremo Altaf Hussain,
Patel even refuses to buy the who was once himself an army prot-
crossed over to BJP upsetting a lot of local equations Nidhi.Sharma@timesgroup.com
logic that Congress candidates,
or Chottubhai Vasava of
g. Musharraf, a Karachi Muhajir,has
long been interested in leading such
Bharuch/Godhra/ Dahod/ Jhagadiya, got elected in the an alliance. With the two national par-

In Godhra, GST a Pressing Vadodara: The results of


Uttar Pradesh civic body
elections may be resonating
in election-bound Gujarat,
same way (using EVMs), and
insists that the machines have
been tampered.
In Godhra town, a largely
ties, the Zardari-led PPP and the
Nawaz-led PML (N) weakened and di-
vided, the army can get together a
weak, fractious and pliable coalition,

Concern, 2002 a Bad Memory but ironically the talk isnt


all about BJPs clean sweep
at the mayoral elections;
much of it also revolves
around the electronic voting
Muslim-dominated constitu-
ency, the EVM debate is hot
topic for the electorate. But the
voters have not heard of Voter
verified Paper Audit Trail
led by its long-time protg Imran
Khan and his Tehriq e Insaf Party, in-
stalled in power in Islamabad. This
would perfectly fulfil the Armys
quest for absolute power, without any
Nidhi.Sharma@timesgroup.com 1 2 machines (EVMs). (VVPAT) machines which constitutional responsibility!
The debate across Gujarat, would be used by Election The recent siege of the capital
Godhra (Panchmahal, Gujarat): which would go for its first Commission across over 50,000 Islamabad, ostensibly to protest
The two rail coaches stand beside phase of polling on Saturday polling booths in Gujarat. against the amendment of an elector-
the tracks on Godhra station, their (December 9), is whether EVMs These machines would give al law, by a group of Bareilvi protest-
doors sealed with barbed wire. The are really tamper-proof. each voter a slip to corrobo- ers, clearly dovetails into these ambi-
ANIRBAN BORA

small board has faded and you can Congress campaign on social tions of the army. The Bareilvis in
hardly see Sabarmati written on media, especially on Pakistan, who constitute 60% of its
it. Creepers have grown on the WhatsApp, is buzzing with the population, lack the financial clout of
sides of the coaches. All that is left question whether EVMs can re- Saudi-funded Deobandis.
of one coach is just the iron struc- ally favour the party in power. Ideologically, the Bareilvis have
ture inside. This argument has gained strengthened their base by their stri- state institutions.
Almost 16 years after this bustling 3 4 1) Railway station traction even in largely-tribal dent denunciations of Qadiani/ There are also questions about the
town in Panchmahal district be- 2) Burnt rake of Sabarmati Dahod district and Ahmadi Muslims, as heretics and by motivations of Army Chief General
came the epicentre of 2002 Gujarat Express at Godhra Railway station Panchmahal. Kanshibhai backing the assassin of former Bajwa, in this abject surrender. The
carnage, Godhra has moved on and 3 & 4) Casual labourers at Chauhan of Halol village in Punjab Governor Salman Taseer. The protestors had opposed an amend-
is desperate to forget the incident. work in a Godhra factory Dahod district said, incompetent civilian government ment to the electoral legislation
Ibrahimbhai, a mobile phone sales- making rolling pins and Everythings managed. How headed by stand-in Prime Minister moved by the law minister, as it was
man near the railway station, says, dandiyas. Wholesale dealers else can BJP win 14 of the 16 Shahid Khaqan Abbasi was unable to felt that the amendment would weak-
Its a bad memory. It is past. We are complain of low market mayoral elections in UP where control the Bareilvi demonstrations en constitutional provisions declar-
all co-existing peacefully. Hindus sentiment after GST EVMs were used. In the civic No VVPAT Discussion in the capital and elsewhere. The gov- ing Qadianis as non-Muslims.
have different mohallas and body elections, it has lost ernment asked the army for assis- Moreover, there is said to be a subter-
Muslims live on the other side. Even ry. We were throttled by notebandi schools, Hindus living in the east- where ballot papers were used, The voters tance - a request, which was turned ranean propaganda barrage in
different castes in Hindus have sepa-
rate colonies. We live separately but
(demonetisation). Just when we
were recovering, GST was imple-
ern side cite healthcare as a prime
concern. Karmabhai, who owns a
but nobody is bringing that
out. Why doesnt the govern-
have not down Army Chief General Qamar
Javed Bajwa. Worse still, the govern-
Pakistan, alleging that he is a heretic
Qadiani, against General Bajwa, who
have same concerns education for
our children, better healthcare and
mented. Our dealers do not have
enough business. Market is down. So
small refreshment shop in the main
bazar, says, We want better health-
ment settle it once and for all
and conduct some elections on
heard of ment agreed to Bajwasadvice that
it should meet the demands of the
superseded three seniors, when
Nawaz Sharif appointed him as army
improved economic conditions.
Employment is not a problem here
though the price remains the same
we have not been selling as much for
care. Godhra is the centre where
even people from neighbouring
ballot papers?
Congress has even circulated
Voter-verified Paper demonstrators and sack law minister
Zahid Hamid. This followed an agree-
chief. It has been noted that the chair-
man of Pakistans Joint Chiefs of
but the trading community has days now, he says. tribal-dominated areas come to. We statistics saying that in pan- Audit Trail machines ment signed by a serving army offic- Staff Committee, General Zubair
been hit with the introduction of The factories are have a shortage of doctors. You can- chayat polls conducted on 5390 er, Major General Faiz Hameed, act- Mehmood Hayat, bypassed when
the goods and services tax (GST). concentrated in the not step inside the government hos- ballot papers, BJP lost as many that would be used in ing as a mediator, with the Bajwa was appointed as Army Chief,
We are very innovative. Most peo- Muslim part of pital. It is so dirty. as 4,728 seats, but it won 14 of 16 demonstrators. has become rather high profile re-
ple are self-employed over genera- Godhra. Drive to- Traditionally, this Muslim- mayoral positions which were 50,000 polling booths This abject surrender to an unruly cently. Zubair visited Saudi Arabia
tions, says Ibrahimbhai, whose wards the Hindu- dominated constituency Muslims conducted on EVMs. mob infuriated the Islamabad High recently,where the Kingdoms rulers
brothers own small factories mak- Jobs is not inhabited colonies comprise 53% of the electorate has In the remote tribal villages rate whether the vote he has Court, which had ordered a crack- received him. He has also made stri-
ing wooden dandiyas and rolling a problem and you will find the been a Congress bastion. However, beyond Bharuch city, there are cast has gone to his favoured dent statements against India.
pins and boards. here but the roads dotted with this time it is witnessing a keen con- many interesting theories that party. Wallahbhai in Godhra ARMYS ADVICE ON SACKING MIN General Zubair was a favourite of the
Arif, another factory owner who trading com- mid-range eateries, test. Sitting Congress MLA CK are floating around. Theres a and Mahendrasinh Chauhan overbearing former Army chief
sells his rolling pin to wholesale
d e a l e r s i n H yd e r ab a d a n d
munity has rest houses, hotels
and government of-
Raulji has crossed over to BJP. The
Congress has fielded Rajendrasinh
small chip that they install in-
side voting machine, said
in Dahod havent heard of
this machine. But will they
Govt agreed to Raheel Shareef, now based in Saudi
Arabia. If the politicians are under
been hit by
Secunderabad for `11 a piece, says,
We have stayed afloat through the
the GST fices. There is a stark
difference in the civ-
Patel and is depending on its tradi-
tional vote bank to pull the party
Samirbhai Patel of Jhagadiya
town. This chip converts all
tally the number of votes cast
to a party from each booth
Army chiefs ad- siege from the Army in Pakistan, is
the army chief, General Qamar Javed
riots, demonetisation and now GST. ic amenities and election issues as through. In 2012, Raulji had won the votes for BJP. Even if you press with this paper receipt I get, vice that it should Bajwa himself under siege, from for-
But it is increasingly getting tough. well. While Muslims inhabiting the seat with a narrow margin of 2,800 panja (Congress symbol) or asked Chauhan. EC has de- mer and serving colleagues, for alleg-
For the past one year, Arif has had western part of the crowded town votes. The Congress is banking on teer-kamaan (bow and arrow cided to randomly tally this meet demands of demonstra- edly being a Qadiani?
a lot to complain about. We are a speak about no water supply, squal- this, caste dynamics and Rauljis symbol of Janata Dal-United), paper trail in at least 10% of The author is former High
cash-driven small three-room facto- or and lack of English-medium deception to swing the election. the vote goes to BJP, he alleged. the polling booths. tors and sack law minister Commissioner to Pakistan

ADDITIONAL CHECKS Voter Verified Paper Audit Trail machines to be used in all 182 Assembly seats
Kashmir Talks No Action Report Yet

Software Foolproof, 2-tier EVM Checks On: EC Dineshwar Sharma NGT Slams Delhi
Govt for Inaction
Aanchal.Bansal@timesgroup.com Taking No Chances With Security
conducted by the Gujarat state Meets Bhat, 1 More
EVM machines are randomly No Newspaper election commission last month,
officials said that most damages
Hurriyat Leader Against Pollution
New Delhi: Amid parties raising
concerns over the security and
selected for checks twice Ads on Dec 8, 9 were caused in transportation
of the units. There were physi-
reliability of electronic voting 3-4% before they reach a polling sta-
tion to ensure that they are not Sans Nod: EC cal damages such as the outer Our Political Bureau Our Political Bureau
machines (EVMs), officials at the Chance of body being broken or a part com-
programmed to favour
Election Commission claim the hardware NEW DELHI: ing off. Those machines will be Srinag ar: Centres interlocutor New Delhi: A day after the India-Sri
any candidate
EVMs being used in Gujarat are problems The Elec- replaced for the polls, an offi- Dineshwar Sharma met with with at least Lanka cricket Test match was stalled
tamper -proof and that necessary in EVM Each stage of checking and tion Com- cial told ET. two Hurriyat leaders during his second following claims of poor air quality in
security checks are being done at machines Most reports of EVM malfunc- visit to the state last week. Sharma drove the capital, the National Green
randomisation happens in the mission has
all levels to ensure free-and-fair presence of observers or repre- tioning pertain to physical dam- to the residence-cum-office of Abdul Gani Tribunal (NGT) on Monday pulled up
elections. issued di- ages like a broken polling button Bhat in Wazir Bagh Srinagar on the Delhi government for not submit-
sentatives of political parties
Senior EC officials maintain rections that no news- of weakened batteries. These November 27, where another Hurriyat ting an action report on tackling pollu-
that while software tampering of ticular candidate. The first stage litical parties, officials added. paper advertisement be machines get replaced, a senior leader was present. The meeting lasted an tion in the city.
EVMs is not possible, there is a of randomisation happens at the Referring to the ECs decision to published on December EC official said. hour, according to a state government in- A bench headed by NGT chairperson
3-4% chance for hardware mal- district level when the machines have Voter Verified Paper Audit 8 and 9 in poll-bound While the current election will sider. The meeting assumes significance Justice Swatanter Kumar had on
functioning from the time the reach a particular assembly con- Trail (VVPAT) machines in all see a second generation of as the Hurriyat leadership led by Syed Ali November 28 directed the government
EVM machines leave the factory stituency and the second round 182 Assembly constituencies and Gujarat without its prior EVMs, the EVMs were intro- Geelani, Mirwaiz Umer Farooq and Yasin to submit the report.
to the time of polling. happens at the constituency level have a round of tallying votes in clearance, a policy the duced in 1982. Officials said that Malik have stayed away from the dialogue The AAP-led Delhi government in
The security system also in- when machines are randomly at least one polling booth of each poll panel adopted after the 2019 elections will be con- initiative, claiming the exercise was a response said it needed more time to
volves a two-stage randomisa- selected on the basis of a com- constituency, officials said that controversial ads were ducted with the latest edition of waste of time, and questioned the come up with a plan as it did not have
tion process in which machines puter programme to be sent to a this will help establish credibili- issued by the BJP dur- machines, M3, which will be ab- Centres sincerity. Bhat refused to talk an environment secretary or chief
will be randomly selected before polling booth. Each stage of ty of the poll process. solutely tamper proof. about his engagement with Sharma, but secretary at present. Chief secretary
reaching a polling station to en- checking and randomisation Following reports of over 3,000 ing the 2015 Bihar elec- The M3 comes with digital veri- told ET that his party the Muslim MM Kutty was transferred to the fi-
sure that the machines are not happens in the presence of ob- ballot units being found faulty tions. PTI fication system coded into each Conference favoured a dialogue. nance ministry last week, as his pro-
pre-programmed to favour a par- servers or representatives of po- in the First Level Checks (FLC) machine. motion was in order.
https://t.me/TheHindu_Zone https://t.me/pdf4exams

WWW.ECONOMICTIMES.COM
Brands & Companies  5
Tata Comm to Invest up to `. 160 cr in Cloud Business
nologies and providing a range of said Srinivasan.

Digital Push
services from where customers can Tata Communications will have to
Co to use funds to pick and choose what they want. compete with global players like Mi-
Growth of
provide more services, Tata Communications is the cloud in India Tata Communications, which is the
cloud provider for the Indian govern-
crosoft, Amazon Web Services and
the just launched Googles cloud
cloud provider for the Indian is pegged at
on newer technologies governments e-marketplace
a CAGR of ments e-marketplace, is also wor-
king on several smart city projects,
platform for clients in the home turf
besides warding off other domestic
30-32%
and for expansion It is on a par
since these places will generate a lot
of data.
players to get more projects.
The company that has its cloud busi-
Co is working on It will have to with other In India, there is a lot of momen- ness across 13 global locations is in
Devina.Sengupta@timesgroup.com several smart compete with global emerging tum around cloud and cloud requi- talks to buy the enterprise business of
city projects players like Microsoft, markets rements because of all the smart ci- Tata Teleservices after the latter anno-
Mumbai: Tata Communications, since these places Amazon Web Services Telco has its cloud growing at ty projects and government initia- unced its decision to merge its mobili-
the telecom unit of Tata Sons which will generate a and Google for clients business across a CAGR of tives, so we want to be part of that, ty business with Airtel. According to
looks into enterprise, cloud and se- lot of data in India 13 global locations 30-35% said the senior VP. His team is wor- an earlier ET report, Tata Communi-
curity solutions, has earmarked a king with the ministry of electro- cations has appointed Axis Capital as
capital expenditure (capex) of $20- nics and information technology its investment banker for valuations,
25 million (.`130-160 crore) for its the market (cloud) would be any- All these markets are growing be- (MeitY) to get its cloud accredited as it looks to consolidate its market po-
overall cloud business for the co- where from $1.5-2 billion, which in- cause cloud is in the heart of digital for Indian requirements. sition in the enterprise segment,
ming calendar year. cludes infrastructure, software transformation. 80% of the compa- We also have plans to set up a go- strengthen its core network resilien-
Overall, cloud market is anywhe- and platform services. nies in the world are going through vernment community cloud, be- ce, reach and cross-sell services.
re between $200-250 billion, said He pegged the growth of this busi- some kind of transformation, some- cause as we win more and more go- The company employs about 100-
Srinivasan CR, senior vice-presi- ness in India around a compound an- where the journey of digital cloud is vernment projects, we want to put 150 engineers to create technologi-
dent, global product management nual growth rate (CAGR) of 30-32%, growing, added Srinivasan. them in a government community es around cloud and another 200-
and data centre services, Tata Com- on a par with other emerging markets The investment will be used for ge- cloud, which means that only go- 250 look at the operations side of the
munications. If you look at India, growing at a CAGR of 30-35%. ographical expansions, newer tech- vernment customers will be there, cloud business.
US FDA Nod for
Eros Intl to
Raise $100m First-time Car Buyers Drive Cancer Biosimilar
is a Big Triumph
Our Bureau

Mumbai: NYSE-listed Eros Interna-


tional, the holding company of Indian
film studio Eros International Media,
Up Sales of Premium Models
Rise in disposable income, stable price, cheap financing aiding markets climb up value chain: Experts
Q&A
has entered into definitive agreement
to raise $100 million from an institu-
tional investor. search by Maruti Suzuki reveals For Bicons MD Kiran Mazum-
Sharmistha.Mukherjee
New Set of Wheels
The move will help the company re- the primary consideration of the
pay $53 million outstanding under @timesgroup.com new-gen Dzire buyer is vehicle sty- dar Shaw, the approval for
its revolving credit le/looks (23%), followed by brand Traztuzumab, a biosimilar
facility (RCF), while New Delhi: First-time car buyers First-time car buyers in India are moving image (17%) and features (13%). Ve- cancer dug, is a reward ear-
The offering rest will be used for in India are moving beyond entry- beyond entry-level cars and opting for more hicle mileage had scored most ned after a decade of striving
is expected to general corporate level vehicles, choosing instead premium vehicles leading to strong (18%) and emerged as the primary to develop the drug. After
close on purposes, Jyoti Desh- more premium options in a prono- sales growth across companies It is difcult to consideration among consumers initial hiccups with the US and
ON PROFIT SHARE
December 6, pande, group CEO at unced show of upward consumer point out an exact who had opted for the second-gene-
subject to Eros International, mobility thats driving sales of fea- Number of first-time buyers
for Maruti Suzuki DZire has
time frame but ration version of the car. EU drug regulators, Shaw in
an exclusive interview to
We are looking at a
satisfaction told ET. We are mo- ture-rich and pricier models. over the next 7-8 Vivek Srivatsa, head (marketing),
increased to 46% from 28%
of customary ving in the right di- The number of first-time buyers in the last three years years, especially passenger vehicles business, Tata Divya Rajagopal, said this combined opportu-
closing rection. From exten- for Maruti Suzuki Dzire has incre- with BS VI norms Motors, explains: Buyers have a approval signifies India and
conditions ding the RCF to get- ased to 46% from 28% in the last making entry-cars definite vision of the car they want her companys capability in nity of $40 b. I think
ting the class action three years. Similarly, those for the pricier, consumers to buy today.It is not only about
lawsuit dismissed and now to raise Hyundai Xcent have risen to 55% Those for Hyundai Xcent
may well opt to mobility but also about connecting
developing complex drugs.
Edited excerpts:
in the next five ye-
money, Deshpande said. against 40% registered for the ol- have shot up to 55% as with his aspirations. The top five
For gross proceeds of $100 million, der version of the sedan. against 40% for the older
version of the sedan
shell out a bit more
and directly buy purchase parameters have more or When will we see Mylan ars we can aim at a
there will be a registered direct offe- Even for the newly launched Hy- less remained the same, but there
ring of $122.5 million aggregate prin- undai Verna, priced at `8 lakh, the
a bigger, feature-
enriched vehicle
is a change in ranking.
launching the drug in US? profit share of $1b
For Hyundai Verna, priced Since Mylan has made a
cipal amount of Eros senior conver- number of first-time buyers has al- Hence, price and fuel consump- KIRAN MAZUMDAR
tible notes due 2020 and warrants to most doubled to 35%, compared above `7.99 lakh, the V G RAMAKRISHNAN tion are now secondary to design, settlement with Roche over
number of first time buyers Managing Partner, this drug, both the companies SHAW
purchase 20,00,000 of the companys A with 18% recorded for the earlier reputation, interior roominess, MD, Biocon
has almost doubled to 35% Avanteum Advisors
ordinary shares. The offering is ex- edition of the vehicle. or connectivity. have agreed on a certain date
pected to close on December 6, subject The story is similar at Tata Mo- VG Ramakrishnan, managing to launch this drug, which I
to satisfaction of customary closing tors. The company, which positio- partner at Avanteum Advisors, sa- cannot reveal. certain Gulf Cooperation
conditions, the company said. ned the Zest above the Indigo, says SEVERAL INDUSTRY EXPERTS ys the trend is likely to accelerate.
Citigroup Global Markets served as the number of first-time custo- The salaried professional today What does the approval Council Countries, ASEAN and
ATTRIBUTE THIS TREND TO
capital markets advisor to Eros. mers for the car today stands at starts at a minimum package of mean for Biocon? CIS regions.
z Rising disposable incomes
46%. And what is particularly in- `3-4 lakh. Buying a car that costs This approval is a big triumph What can we expect from
teresting is that below-30 buyers z Relatively stable twice as much is not a big deal, espe-
vehicle prices for us and a validation of our your pipeline next?
accounted for more than a fifth of cially with access to cheaper finan-
the cars sales. At Tata Motors, the First time buyers for z Widespread access cing solutions. It is difficult to point capabilities. We are in this Well we will look forward to
In a Nutshell average age of customers was Tata Motors sedan
Zest stand at 46%
to cheap financing
solutions
out an exact time frame but over the complex space along with the EU approval for Trastuzu-
about 38-40 years only a couple of next 7-8 years, especially with BS- other innovators like Pfizer, mab, followed by approval for
years ago. VI norms making entry-cars prici- Amgen who are also going Pegfilgrstim and Glargine.
Experts attribute the markets er, consumers may well opt to shell after biosimilar drugs. So
 Scopfy, 2 Other Investors climb up the value ladder to rising said Rakesh Srivastava, director `59,000) a month. out a bit more and directly buy a Would you look at fund
now, we can play a serious
to Acquire Timex Subsidiary disposable incomes, relative stabi-
lity in vehicle prices, and easy ac-
(sales & marketing), Hyundai Mo-
tor India (HMIL).
The trend is similar at Hyundai,
where the average income of the
bigger, feature-enriched vehicle.
The compact not the mini seg- role in this space. With
raising in near future?
Well we already have spun off
NEW DELHI Scopfy Components, a cess to cheap financing. Affordability is also pushing sa- Verna buyer has increased by abo- ment may become the entry point Mylan, we are looking at a
a unit into Biocon Biologics. If
joint venture formed by former India is a young economy, with les among young consumers. R Kal- ut 40% to `7-10 lakh. At Tata Mo- for Indian consumers. combined opportunity of
we need to raise funds for
Timex Group COO Kapil Kapoor and high disposable incomes About si, senior executive director (sales tors, the average income of buyers $40 billion. I think in the next
35-55% of buyers of the Next Gen and marketing) at Maruti Suzuki has doubled in the last few years. Get a daily mail with the most future development of the
Asahi India promoter Sanjay La- five years we can aim at a
Verna and the new XCent, respec- India, says that the average house- Hence, factors such as vehicle pri- important news on the automotive pipeline, we would move our
broo, along with two other investors, is ac- industry from all media outlets. profit share of $1 billion.
tively, are first-time buyers, indi- hold income of families buying ces and fuel efficiency are no long- biosimilar drugs in that
quiring Timex Group Precision Engineering, a Send a blank mail to
cating that customers want their (the third-generation) Dzire has er primary determinants of pur- join@etauto.com to sign up.
With the USFDA approval, subsidiary. We can play
manufacturing subsidiary of Timex Nederland first vehicle to be feature-rich, jumped 22% (to `78,000 from chasing decisions. An internal re- do you think you can start seriously in this space. We are
BV, for an undisclosed amount, reports Our filing in other markets? looking at combined opportu-
Bureau. The acquisition is expected to be Yes, we have already laun- nity of $40 billion. Biocons
completed by March 2018, Kapoor said. The
other two investors in Scopfy Components are
MOTOROLA, LENOVO SMARTPHONES DRIVE GROWTH Airtel Acquires ched the drug in India and
certain Middle East countries.
profit share will be in $1bil-
lion in the next five years.
Padmini VNA Mechatronics chief executive,
Kabir Bhandari and former Deutsche Bank
managing director Rahul Mookerjee.
Lenovo Sales Up 14% in FY17 the Motorola brand which is get-
Stake in Digital
Books Platform
With FDA approval, we can
hope to launch the drug in
This will enable us to open
door for other countries.

 Maggi Compliant with Writankar.Mukherjee Q2 Report Card


Latest FSSAI Norms: Nestle
@timesgroup.com
Smartphones Market Share
ting all the focus. Even the PC
market grew in July-Septem-
ber, an industry analyst said. Our Bureau
Biocon Surges 15%;
23.5% 9.0% Lenovo -
NEW DELHI Nestle India said Mon-
day that Maggi complied with the
Kolkata: Chinese electronics
major Lenovo India posted 14%
growth in sales last fiscal, which
Xiaomi Motorola
Lenovo India in its filings to the
Registrar of Companies also said
it has transferred its data centre
New Delhi: Bharti Airtel has ac-
quired a stake in Juggernaut Bo-
Brokerages Upbeat
latest guidelines of FSSAI and it industry executives attributed to 23.5% 44.0% business to a new group entity, Le- oks, a digital platform to discover
Divya.Rajagopal
Biosimilar drugs are iden-
does not add any ash to its popular the performance of its two Samsung Others novo Global Technology India, and read books and submit amate- tical copy of highly complex
noodles. District administration of Shahjahan- smartphone brands Motorola valuing it at `24.95 crore. The com- ur writing, as Indias leading tele- @timesgroup.com biologic drugs that claim to
pur, UP, had slapped a fine on Nestle India and and Lenovo given that personal PC Market Share pany in its filing said this was do- com operator looks to beef up its have the same efficacy as the
its distributors last week after Maggi allegedly computer market had declined ne to ensure that it can concent- content play to take on Reliance Mumbai: Shares of Biocon innovators version.
last fiscal which had impacted all 24.1% 20.0% rate and expand its flagship busi- Jio Infocomm. hit a one-year high in Mon- FDA approval for Trastu-
failed to pass the lab test and found ash con- Lenovo Dell
the industry biggies. ness of laptops, desktops and mo- The investment is in line with days trade as the markets zumab validates Biocons
tent above the permissible limits for human According to the companys la- bile phones. Airtels endeavour to build an cheered after the capabilities in biosi-
consumption. Nestle India on Monday declared test regulatory filings, Lenovo 31.1% 24.8% An email sent to Lenovo India open content ecosystem and USFDA validated its milars, eases manu-
HP Others
an interim dividend of `33 per share for 2017. Indias sales rose to `11,950.13 did not elicit any response till bring world-class digital content biosimilar cancer facturing concerns
crore in the year ended March Monday press time. to its customers, the company sa- drug Trastuzumab and potentially im-
Tablets Market Share
 Domestic Air Passenger 2017, compared with `10,483.62 An industry executive said that id in a statement on Monday, wit- and approved it for proves its ability to
crore the year before. In absolute 29.9% 14.6% the data centre business was hout disclosing the amount inves- the US market on get approvals in
Traffic Up 20% in October terms, Lenovo Indias pace of Acer Samsung transferred to a new entity to pa- ted and the stake acquired. Friday night. The other markets. We
NEW DELHI Indias domestic pas- growth came down last fiscal ve the way for Lenovo India to fi- It said that the investment will drug, co-developed by US raised target price to `525
considering it grew by 87% the 26.0% 29.5% le the application to set up whol- enable Juggernaut Books to ramp drug maker Mylan, is the from `410 and include in our
senger traffic grew by 20.4% in Lenovo Others
year before, but industry execu- ly-owned stores in India under up content acquisition and digital first biosimilar Trastuzu- Top 3 pharma picks along
October, a global airline association tives attributed it to a higher ba- (Data: IDC India) foreign direct investment for re- marketing, and prepare to launch mab to get a marketing app- with Aurobindo and Cipla,
said on Monday. According to the se effect, around 15% decline in including Lenovo-Motorola. Ho- tail. The company does not want a subscription offering in the roval in US markets. wrote Citi in a report. Citi
International Air Transport Association, Indias sales of the PC market and wever, this fiscal Lenovos sales to keep the data centre business next few months. Biocon rose 15%, closing at said Biocon is most levera-
domestic demand was highest amongst major smartphone sales getting affec- growth will be better conside- in the application as these high- The platform, that was launched `514, and the USFDA deve- ged among its Indian peers
aviation markets like Australia, Brazil, China, ted after demonetisation. ring Oppo and Vivos sales tech products are not going to be in April 2016, has close to one mil- lopment sparked a revision to global biosimilar and sho-
Japan, Russia and the US. Oppo, Vivo and Xiaomi had ea- growth has come down. Also, it manufactured locally and sold lion downloads across Android of target price for its shares uld deliver meaningful upsi-
ten sales of all brands last fiscal, is driving offline expansion of directly to enterprises. and iOS operating systems. across brokerages. de over the long term.

Xiaomi Said to be Planning IPO, Seeks At Least $50B Valuation


Chinese smartphone maker considering an initial public offering as soon as next year and Hong Kong is most likely the destination, but banks concerned over valuation
Xiaomi has gained momentum in recent ting campaigns, eschewing traditional An IPO may help Xiaomi retain employe-
Bloomberg months after stumbling against local retail stores. By 2014, its formula of es who have stuck with the company
rivals such as Huawei Technologies and Xiaomi Plans to Set Up More Plants in India flash sales and savvy social media through the tough times. In January, Hugo
New York: Xiaomi, the Chinese smartp- Oppo. The company, led by Lei Jun, has helped it top Chinese smartphone Barra, a former Google executive who had
Hyderabad: Xiaomi India has plans to set up more plants and add capacity to manufac-
hone maker that was once the most invested aggressively in retail stores and rankings and amass the valuation that spent three and a half years at Xiaomi,
valuable startup in the world, is in talks in India. Its now on the verge of surpas- ture phone and products in other categories. The company currently has three manu- made it briefly the highest in the world, returned to Silicon Valley for a job at
with investment banks about a possible sing Samsung Electronics in the country, facturing plants two for phones in Sri City, Andhra Pradesh and one for power banks before it was surpassed by Uber Tech- Facebook. Employees will love to hear
initial public offering and seeking a the worlds fastest-growing smartphone in Noida, its vice-president Manu Jain said. We are definitely exploring. We want to nologies. Lei, who often sported black the company is finally planning an IPO,
valuation of at least $50 billion, accor- market. A successful IPO may bring it at add more capacity. We want to set up more plants, not just for phones, even for other turtlenecks, was compared with Apples said James Yan, an analyst with consul-
ding to people familiar with the matter. least $5 billion, a much-needed ammuni- categories like Mi-band. There are many other categories..., he said. From July 2014 to Steve Jobs. tancy Counterpoint.
The Beijing-based company is consi- tion for expansion, the people said. But Xiaomi stumbled last year,
the beginning of this year, the company has invested more than `3,000 crore in the
dering an offering as soon as next year We want to transplant Chinas busi- with shipments plunging aga-
with banks suggesting Hong Kong as ness ideas into other countries, Lei country, Jain said. The company claimed it is the number one smartphone vendor in the inst fierce local competition.
the most likely destination, said the said on Monday at the World Internet country, as per IDC's latest Quarterly Smartphone Tracker, Q3 2017. With a market The company ranked only fifth
people, requesting not to be named Conference in Wuzhen, without com- share of 23.5% and having shipped 9.2 million smartphones in the quarter, it has be- in Chinese phone shipments in
because the matter is private. While menting on an IPO. In India, weve come the fastest growing smartphone brand in India, the company said. PTI the first quarter, according to
banks have talked up Xiaomis pro- created a miracle. After only three research firm IDC.
spects as they seek to win the mandate, years, weve become number one. Xiaomi is making a major
they have concerns about whether the Kaylene Hong, a Xiaomi spokesperson, downs, the $50 billion target may be banking and capital markets in Hong Kong push into old-fashioned retail: it
company can reach the $50 billion level, says the company does not comment on attainable, depending on business per- at consultant EY. Without a doubt, the plans to build 1,000 Mi Home
much less a $100 billion target that IPO matters. The information reported formance and market trends over the market is hot for tech companies, especial- stores by 2019 about twice
some top executives have embraced, earlier that Xiaomi is considering an IPO next few months. ly tech companies with China ties. Apples global store count
the people said. Xiaomi last raised as early as the second half of 2018. Its not a preposterous valuation, said Founded in 2010, Xiaomi, or Little Rice, targeting $10 billion of retail
money in 2014 at a $46 billion valuation. While the company has had ups and Keith Pogson, global assurance leader for made its mark with buzzy online marke- sales by 2021.
https://t.me/TheHindu_Zone https://t.me/pdf4exams

6  Disruption: Startups & Tech THE ECONOMIC TIMES | NEW DELHI / GURGAON | TUESDAY | 5 DECEMBER 2017

YOUVE GOT MAIL Look forward to Salil joining us in the new year: Interim CEO tells Infosys staff
Numbers Watch

a
For comprehensive and
insightful stories about all
things startups and technology,
log on to www.ettech.com
Chitti Aayi Hai: Raos Mail Numbers Watch is a column where ET takes a
close look at the financial numbers put out by
Tweet OF THE DAY
on Parekh Ends Uncertainty startups and interpret them for our readers

DeMo Takes Glow


off Bluestone,
ting an end to the uncertainty over red, an Infosys employee said. Sik- some steam in the absence of
Our Bureau the IT firms top post following the ka had distributed the latest iPho- Sikka.
departure of Vishal Sikka. ne to 3,000 top performers in 2015 Infosys has a little over 198,000
Bengaluru: Interim CEO UB Pra- I would like to inform you that and had loosened policies such as employees and the company has be-
vin Rao mailed Infosys employees
over the weekend to tell them that
the company would have a new lea-
our board of directors has appoin-
ted Salil Parekh as chief executive
officer and managing director of
work-from-home for certain teams.
They are also keen to see if he ke-
eps programmes such as zero dis-
en battling attrition, though it has
said it is controlling attrition of its
high-performers.
Losses Widen 37%
der at the start of the new year, put- the company effective January 2, tance, which aimed to get each pro- A CEO who can return the compa- 2015-16 to `48 crore in 2016-17.
2018...We look forward to Salil joi- ject to deliver some innovative so- ny to industry-level growth will be Mugdha.Variyar Kushwaha said the company has
ning us in the new year, Rao said lution to clients. Employees had sa- key as employees hope for salary @timesgroup.com been expanding its team.
BRUCE FENTON in an email to employees. ET acces- id that the programme had lost hikes and promotions. Sikka had The cost of materials consumed,
@BRUCEFENTON sed a copy of the email. boosted promotions in his first ye- Bengaluru: Online jewellery mainly gold, also went up to `99
The short mail, highlighting Pa- ar at Infosys. platform Bluestone Jewellery and crore from `84.9 crore. Bluestone
I love Bitcoin and the rekhs role at Capgemini and his Lifestyle saw losses widen 37% to consumed`69-crore worth of gold
related technology prowess at turnarounds, came as a `96.89 crore in 2016-17 from `70.5 in 2016-17 against `59 crore the
but this is not a way relief to Infosys employees, who crore in the previous financial. year before. It also spent `29 crore
have been eager to put an end to the EMPLOYEESPEAK Total revenue from operations on silver compared to `15 crore
to get rich quick. It UB Pravin Rao uncertainty they face. grew a modest 12% to `112 crore in the year before. Costs on precious
takes knowledge and Employees have received a slew of
No one is expecting him 2016-17, up from `100 crore in the stones remained almost same.
MISSIVES GALORE emails from Sikka, dismissing previous fiscal, as per RoC filings Khushwaha, however, said the
patience. Be extreme-
ly cautious of ex- Employees have re-
the furore over corporate gover-
nance as noise, to Rao saying the
(Parekh) to come in and sourced from Tofler. CEO Gaurav
Songh Kushwaha said demoneti-
company was on track to become
profitable by 2019 and expected
perts - especially
ceived a slew of emails
company had always held together
in challenging times after Sikka
distribute iPhones but you sation had slowed down the com-
panys growth by 10% in the last
revenues of `1,000 crore in 2019-20.
But the company is expecting
those who sell cours- stepped down. need to know what is happe- five months of the financial year. higher expenses in the current fi-
es or claim to have in- from Sikka, dismissing Everyone has been calling peo- We were expecting a growth in nancial year on greater spend on
sight into pricing the furore over
ple they know at Capgemini to find
out what he will be like. No
ning. If it changes direc- sales of 40-50% over 2015-16, but
there was a significant drag on
advertising and plans to open of-
fline stores. We have allocated
moves and trading
corporate governance, to
one is expecting him to
come in and distribu-
tion every three business due to demonetisation, `60-70 crore for marketing this
strategies. Kushwaha said. year, Kushwaha said. A major

Rao saying co had


te iPhones but you years then The losses were higher despite branding exercise has been the
need to know what is advertising and promotional ex- appointment of Alia Bhatt as
Tech Buzz always held together in happening. If it people get penses falling to `34.8 crore in brand ambassador. Bluestones
changes direction 2016-17 from `35.5 crore in 2015-16. m a i n r iv a l , T i t a n - ow n e d
Samsung challenging times every three years tired The companys employee benefit Caratlane, is yet to post financials
then people get ti- Salil Parekh expenses shot up from `28 crore in for 2016-17.
Patents BLUESTONE UP 37%
Palm Scans
Facebook Eyes India for Oculus Push Losses (` cr)
2016-17
2015-16
Revenue from ops (` cr)
70.5
96.89

UP 12%
Social media firm, in partnership with T-Hub, aims to work with 10 VR-focused startups 2016-17 112
nership with T-Hub, an incubator Facebooks VR Innovation lab as sidelines of the Global Entreprene-
Mugdha.Variyar set up by the Telangana govern- part of the six-month accelerator urship Summit last week. The big
2015-16 100
@timesgroup.com ment, which will programme. thing is needing local content. We
work with 10 VR-fo- Facebook also introduced the dont want to show up with western CARATLANE Figures for 2015-16 (` cr)
Samsung has filed a pat- Bengaluru: Facebook is loo- cused startups School of Innovation programme content. That is one of the reasons Sales 131.8
king to understand the Indi- and will give in partnership with Startup Villa- behind the accelerator programme Losses 62.8
ent application for a de- an market for virtual reality them access to ge Collective, wherein 10 teams of to gauge the market and enter in
vice that can read the (VR) and focus on local con- engineering students will get to bu- a proper way, he said.
palm of your hand. The tent to push its VR technolo- ild a next generation product idea Facebook is betting big on VR and
gy product Oculus, a compa- using VR. is reportedly aiming to get millions
prototype tech wouldnt
ny executive said. It will take time for VR to grow in of people across the globe to use its GLOBE TROTTER Meanwhile in tech...
replace traditional biom-
According to Ashu- India but we want to be there when product.
etric systems like finger- tosh Jhaveri, vice-pre- it happens, Jhaveri told ET on the VR is also finding increasing app-
prints or face scanners,
but would only help you
sident of business de-
velopment for Face-
lications in India, from films and
entertainment to healthcare.
How Many Jobs Will Go...
Share of current work hours with potential
book and Oculus, There are over 450 companies in
get a hint in case you for-
got a password. Security
the social media Ground Reality It will take time
VR in India, as per my understan-
for automation by 2030 in select countries

questions handle this


company aims to do
this with the accele-
Facebook announced last for VR to grow in India
ding. Entrepreneurs are visuali-
sing jet engines to applications for
400 m 26% 24% 23%
week it was setting up an Number of
task but someone who rator programme it announ- India Innovation Hub in but we want to be fitness. The power of the platform workers
knows you might be able ced last week in partnership partnership with T-Hub there when it happens is you can build anything, Jhaveri displaced 15% 16%
with T-Hub where it will work said. We are excited about the po-
to circumvent it and get
with VR-focused startups. Chosen startups will have ASHUTOSH JHAVERI, tential of VR here. I think as we get 9%
hold of password. BI Facebook last week announ- VP of business development going in the ecosystem, there will
access to Facebooks VR Global Japan Germany United China India
ced it was setting up an India for Facebook & Oculus be numerous partnerships (for Fa-
Innovation lab States
Source: Statista
Innovation Hub in part- cebook) here, he said.
Quick Byte ANIRBAN BORA

PayPhi, HP Gas Tie Up for epay


Many Startups Say Yet to Naresh Malhotra,
Others to Set Up
BENGALURU Digital payments entity PayPhi has tied up
with Hindustan Petroleum Gas to digitise payments for
delivery of gas cylinders. Consumers who previously

Benefit from Startup India `50-crore Fund


paid in cash at the time of receiving the gas cylinder, can now pay
from a host of payment options, including UPI, Aadhaar and
BharatQR. Also with the payment going digital, the customer can
shares in excess of what it consi- Shashwati.Shankar@timesgroup.com make the payment remotely when the cylinder gets delivered.
Mugdha.Variyar ders the fair market value, and
@timesgroup.com Non-starter? that they were also questioning Bengaluru: Naresh Malhotra, former

Bengaluru: A large number of


ON IMPACT OF STARTUP INDIA
VOTES Not benefitted
consultants and tax experts on
their valuation assessments.
CEO of Caf Coffee Day (CCD) and an an-
gel financier, is co-investing along with Were not Malicious: SHAREit
startups in India feel they have 80% When there are high valua- two others to create a . 50-crore, early- MUMBAI In response to the Indian government
not benefited in any way from the 2838 Benefited 20% tions, which happened during stage startup family fund.
banning 40 Chinese-origin apps, citing
governments Startup India pro- 2014-15, it is not unusual, after co- Monika Rao, cofounder of Family Doc-
gramme, according to a survey by ON IMPACT OF GST uple of years, for these startups to tor, and her husband Mukund Rao, foun- security concerns, file sharing app SHA-
LocalCircles. Hundreds of star- VOTES Negative 41% get tax notices asking for expla- der of IT company DerivIT, are the other REit said they are a user-friendly content
2531
250 million
tups also said they had received Positive 31% nations about their high valua- lead investors in the
frequent tax notices due to tion and why it should not be con- fund. DerivIT was re- sharing platform and not a malicious or a
change in valuations. Neutral 28% sidered as income to the compa- cently acquired by Swiss spyware application in India. The company
Speed tests conducted on For the question on impact of WHAT COULD BE THE SINGLE ny, said corporate lawyer Vaib- software development
Startup India, 80% of the 2,830 re- hav Parikh of Nishith Desai company Luxoft. said: We do not compromise on users security
BIGGEST CHALLENGE IN 2018
Netflixs Fast.com since spondents said their business Associates. The fund, while largely and their privacy is of utmost importance to us.
its launch last year had not benefited in any way. VOTES 52% Some other concerns were on sector-agnostic, would fo-
The governments Startup India 2801 Corruption equalisation levy and dual taxa-
The fund is
focusing on cus on tech start-ups and
programme, launched early last or bureau- tion on services from global com- tech startups those that use artificial OnePlus 5Ts Let Bitcoin
Messenger year, has so far seen only 5,350 cratic panies. intelligence. We are loo-
26% and those
startups officially recognised un- Consumer
inefficiency Startups have said that they that use king at early-stage star-
Star Wars Users Reveal
App for Kids der it, of which only 74 have avai- demand 22% Funding use digital advertising services artificial tups, could be 6 months to
Version Soon
led tax benefits so far. Also, the to- or growth or loans from global companies like Goog- intelligence 12 months, or older by one
Identities: UK
from FB tal commitment from the `. 10,000
crore fund-of-funds, set up in line
le, Facebook, Twitter and these
companies bill Indian companies
to two years. It can be a
product or services company, but our fo-
NEW YORK OnePlus
with the Startup India Action from their foreign offices due to cus would be on helping them scale up, LONDON The UK
Plan last year, stands at `. 605 crore which startups are forced to pay a Malhotra told ET. is releasing a spe- government is
to 17 AIFs, and 75 startups have re- 6% equalisation levy on top of the Malhotra and the Rao couple have alre-
cial edition, Star planning to crack
ceived funding from the AIFs. invoice value as their billing enti- ady met a few startups, but they are yet to
Ramesh Abhishek, head of the ty is not registered in India, said make the first investment. We are open Wars-themed OnePlus 5T. down on bitcoin as concerns
Department of Industrial Policy Yatish Rajawat, chief strategy of- to investing in Indian start-ups that are The device, which has so far grow that cryptocurrencies
and Promotion (DIPP), the nodal ficer at LocalCircles. incorporated in Singapore as well. We
body for Startup India, had told LocalCircles Survey All of the 2,788 respondents to are also looking at startups in India that only been listed one the are being used to facilitate
ET last week that it will take a few the question on reverse charge can cater to other South East Asian mar- companys Indian site, will be financial crimes. The Treasury
years for disbursements after the ceiving tax notices. Of 2,860 re- said they supported exemption kets similar to India in some ways, but available for purchase on is planning new legislation
commitments of funds, and that spondents, 39% said they recei- from GST (goods and services have a higher per capita revenue genera-
they are doing a tight scrutiny ved income tax notices this year. tax) on transactions for services tion like Indonesia, said Monika Rao. December 14, one day before that will mean anti-money
NEW YORK: Facebook is
while awarding startups with tax ET had reported that the income procured from abroad and said According to Malhotra, typical invest- Star Wars: The Last Jedi laundering and counter terror-
coming for your kids. exemptions. tax department has sent notices billing be made mandatory for ments in each start-up could range from
The social media giant is Another concern for many star- to about 200 entities in August for the Indian offices of these global . 1-3 crore, and the fund is open to co-in-
hits theaters. ist financing rules apply to
launching a messaging tups this year has been that of re- raising funds through preference companies. vesting with other PE startup funds. Business Insider cryptocurrency in future. BI
app for children to chat
with their parents and
with friends approved
by their parents. Window to the World ET scours the globe to bring you the latest and the smartest from the startup world
The free app is aimed at

Chinas AI Advances Help Tech, State Security


kids under 13, who cant HELP IS AT HAND
yet have their own ac-
counts under FBs rules,
though they often do.
Messenger kids comes In an October report, a human rights FREE RIDE IFlyTek and other Chinese companies
NYTNS group said the company was helping the say they follow Chinas laws and protect
with a slew of controls
for parents. The service Beijing: During President Trumps visit
authorities compile a biometric voice da-
tabase of Chinese citizens that could be
Chinas financial support and user data. But they agree that the sheer
number of users in China, plus the gov-
wont let children add to Beijing, he appeared on screen for a used to track activists and others. Those its loosely enforced and un- ernments single-minded drive to dom-
their own friends or de- special address at a tech conference. tight ties with the government could give inate the new technology, puts them at an
lete messages _ only par- First he spoke in English. Then he iFlyTek and other Chinese companies an tested privacy laws give cos advantage. China has entered the artifi-
switched to Mandarin Chinese. edge in an emerging new field. cial intelligence age together with the
ents can do that. AP The video was a publicity stunt, de- Chinas financial support and its loos- considerable resources and US, said Liu Qingfeng, iFlyTeks chair-
signed to show off the voice capabilities ely enforced and untested privacy laws man, at the Beijing conference. But due
Jargon Buster of iFlyTek, a Chinese artificial intelli- give Chinese companies considerable re- access, which could help them to the advantage of a huge amount of us-
gence (AI) company. As China tests the sources and access to voices, faces and ers and Chinas social governance, AI
develop their technology
Malvertising frontiers of AI, iFlyTek serves as a com-
pelling example of both the countrys sci-
other biometric data in vast quantities,
which could help them develop their
will develop faster and spread from Chi-
na to the world.
It is a malicious form of fi ambitions and the technologys darker technologies, experts say. ing) government monitoring is a fact of An iFlyTek spokeswoman said the com-
dystopian possibilities. China does not have the stringent pri- China, analysts with the research firm pany had yet to receive required permis-
internet advertising used At the same time, iFlyTek hosts a labora- vacy laws that Western companies have, Sanford C Bernstein wrote in a report in sion from officials in Anhui, the Chinese
to spread malware. tory to develop voice surveillance capabil- nor are Chinese citizens against having November. Already, Chinas companies province where it is based, to speak with
ities for Chinas domestic security forces. their data collected, as (arguably speak- have at times edged out foreign rivals. the foreign news media. HANNAH HOCH, Study for Man and Machine
https://t.me/TheHindu_Zone https://t.me/pdf4exams

Companies: Pursuit of Profit  7


WWW.ECONOMICTIMES.COM

ADIA Puts $100m Zensar CFO Quits a Year After Joining


pany said it is in the process of selec- strong margin expansion, up from

in KKRs India Our Bureau

Mumbai: The chief financial officer


of Zensar Technologies, Manoj Jais-
ting and appointing a new CFO.
Jaiswal, a chartered accountant by
training, had been appointed as Zen-
sars CFO in December last year. Prior
`. 48.08 crore in the previous quarter. Its
revenue from operations rose 4% over
the previous quarter to `. 762.6 crore.
The company is working towards be-

Credit Platform wal, has resigned just a year after joi-


ning the mid-sized software services
company. He will be relieved from his
duties with effect from the closing of
to that, he was CFO for CEAT, another
RPG Group company. Before joining
CEAT, he had worked with Wipro for 17
years in different roles.
coming a 100% digital organisation,
although its digital business accounts
for just 36.8% of its revenue at pre-
sent. This is explained by the fact that
business hours on Dec 4, the RPG The Pune-headquartered company the deal size in digital business (ban-
Bullish on India Group company said in a regulatory
filing on Monday, without specifying
reported a 33% jump in consolidated
net profit to `. 64.19 crore for the July-
king, finance and retail) is increasing
and more than 50% of the new deals
KKR the reason for Jaiswals exit. The com- September quarter on the back of are in this segment.
Started investing Set up India NBFC in 2009 `
in India from 2006 $6 b investments Extended credit worth $4 b
and set up India executed across
office in 2009 Raised first local fund of
various platforms `1,500 cr in 2013
ADIA $ $
One of A large limited Expressed its keenness to $ $ $
the most partner of make a $5-billion bet on
aggressive several India Indias national highways
sovereign and Asia- Backed the countrys two largest
wealth funds focused PE homegrown renewable energy
in India funds companies ReNew and Greenko

nan, a member of KKR and


Indulal.PM@timesgroup.com CEO of KIFS. ADIAs invest-
ment in KIFS gives us a high-
Mumbai: Abu Dhabis sovere- caliber partner to work alongs-
ign wealth fund has invested ide as we further scale our plat-
about $100 million in the len- form and deliver creative solu-
ding business of US private tions in the market.
equity giant KKR & Co L P, with KIFS leverages its balance
the New York-based asset ma- sheet and KKRs investment
nager using the proceeds to ex- expertise to extend bespoke fi-
pand its credit and corporate nancing solutions to corpora-
loans portfolio in India. tions and mid-sized enterpri-
The money will help KKR Fi- ses with long-term capital ne-
nancial Services (KIFS) extend eds across the country. The
its credit business to the mid- company has extended $4 bil-
market segment, and further lion of financing since incep-
leverage its lending operations tion in 2009.
in India, both companies said In 2017, KIFS further enhan-
in a statement. ced its focus on mid-market op-
Although both KKR and Abu portunities to provide a wider
Dhabi Investment Authority range of companies with the
(ADIA) did not disclose financi- necessary financing for the
al details of the transaction, so- success of their long-term bu-
urces close to the deal told ET siness. KKR now plans to ex-
that ADIAs investment would pand the niche business to Chi-
be a little more than $100 mil- na and across Asia.
lion, translating into about 10% KKR rose to global prominen-
equity in the NBFC platform. ce with its $25-billion takeover
With this, ADIA will be a part of US food and tobacco giant
of KKRs larger financial offe- RJR Nabisco in 1989.
rings, which include private Indian businesses are incre-
credit, real-estate lending and asingly seeking alternative
distressed deals in India, said credit solutions. KIFS has play-
the sources. ed an integral role in the deve-
KKRs NBFC expansion is co- lopment of this important
ming at a time when credit form of financing in India, sa-
across India has grown tight, le- id Hamad Shahwan Al Dhahe-
aving small businesses and fa- ri, executive director of the PE
mily-owned firms short of ca- department at ADIA.
pital. Separately, larger lenders KKRs lending business in In-
are saddled with a mounting pi- dia is completely different
le of non-performing loans. from its global operations, with
The funds will be entirely loans as small as $50 million a
used for KKRs lending busi- growing part of its business.
ness, which was originally The model is developed by its
structured financing. This will India team, headed by Sanjay
now focus on large mid-market Nayar, former CEO of Citigro-
kind of deals, said BV Krish- ups South Asian operations.

Mojostar in Talks to Raise $10 Million


Mumbai: Mojostar, a newly formed joint venture
between celebrity management firm KWAN Enter-
tainment and brand management and licensing
agency Dream Theatre, is in talks with venture
capital and private equity firms to raise $10 million (about . 64
crore) in Series A funding, reports Gaurav Laghate. The compa-
ny, in which KWAN Entertainment holds a majority stake,
hopes to invest $30-40 million over the next two-three years.

Mindtree Platform Offers


Livelihood, Skill Solutions
different villages with collecti-
Sanghamitra.P vely 170 farmers with a four-
@timesinternet.in fold increase in income.
The company applied the
Bengaluru: Bengaluru-based same basic principle to waste
IT company Mindtree has laun- pickers in Bengaluru. My te-
ched a new digital platform am members actually picked
Mindtree.org, which broadly waste because you cant ask a
showcases the companys do- waste picker what is your IT re-
main specific solutions that at quirement. To understand the
the moment include livelihood, on-ground challenges, we deci-
skilling and education. ded to become one and then sol-
We decided that what we ve it, he said.
know the best is to build IT so- Today, any waste picker or far-
lutions, so why not focus on bu- mer can go onto the platform
ilding software platforms to and collaborate to find solu-
make an impact on three quin- tions and solve pertinent pro-
tessential domains including blems irrespective of geograp-
livelihood, skilling and educa- hies, he said.
tion, Prashanth Mehra, head Mindtree is also planning to
of Mindtree.org, told ET. work with artisans through an
Citing an example, he said, I organization called Indus
spent two years in Bihar, a flood Tree. We are looking at this
prone area understanding how segment as creative manufac-
we can leverage on it. So, we ar- turing. Its not really handi-
rived at Madhubani district, craft, its manufacturing to be a
with local consultation at a viable business at the end of
portfolio that was flood friend- the day. So, we will treat it with
ly. I then started working with the same discipline that is re-
five farmers and in two years quired for manufacturing,
time, we were working in three Mehra said.

Mouthshut Deletes
80k Fake User Profiles
themselves as consumers, or hi-
Aritra.Sarkhel re an agency to help them achie-
@timesgroup.com ve positive mentions online. So-
me even attempt to AstroTurf
Bengaluru: Mouthshut.com, such reviews. Earlier in 2012, we
the user generated reviews and had deleted around 4,100 fake
product discovery platform user accounts, says Farooqui.
that pioneered auto rickshaw Farooqui set up a special in-
advertising in the early 2000's, ternal team to monitor suspi-
has deleted 80,000 fake user cious activities of such users
profiles and their reviews from by using advanced screening
its website to reduce damage technology and automated al-
caused to various brands. gorithms. I wouldn't want Mo-
The review platform formed uthshut to be portrayed as a
in 2000 by Faisal Farooqui, who platform that will tolerate non-
famously filed a petition aga- genuine reviews or allow
inst the IT rules in the Supreme brands to manipulate ratings
Court, pointed out that it took on our platform. There are a
his team six months to comple- vast set of algorithms to pinpo-
te the task and considering the int the flagged content. It is a
platform gets thousands of re- highly confidential set, which
views per day, it was difficult to is not disclosed to anyone un-
weed out such anomalies. der any circumstances, not to
Few brands tend to stage its clients or employees.
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8  Careers: The Fast Track THE ECONOMIC TIMES | NEW DELHI / GURGAON | TUESDAY | 5 DECEMBER 2017

Private Equity Calling the Shots Severance Pay Packages Can Be A Deal-Breaker
On Hiring in Portfolio Firms Senior executives reject more than 25% job offers on average due
to unsatisfactory severance pay packages included in the monetary
component, reveals a study of 100 C-suite searches carried out by
search firm BTI Consultants.
2 WHAT IS ON OFFER
The severance package offered to a potential
C-suite candidate can range between `20 lakh
in the past 12-18 months, Lodha said. and `3 crore. There is no uniformity even
Rica Bhattacharyya & Sneha Shah Earlier, initial screening would be E-commerce leads the sectors in severance payout. E-commerce, within specific industry verticals
A Helping Hand done by the promoter company, now being a relatively new sector, has higher business uncertainties.
Mumbai: On a dusty October day in it is the PE firm shortlisting talent, Severance package is usually 15-25% of the
Funds extensively Therefore, employees tend to be careful while taking a call to join
Allahabad more than 200 sales executi- engaged in hiring sometimes even drafting job descrip- annual salary package, and for some critical
ves queued up for an interview for the mid-senior to CXO tions and running the entire search, this sector. Hence their concern needs to be taken care of in terms roles can be in the range of 50-100% or
post of regional sales manager at a experts said. even more
level talent for of job stability, said James Agrawal, managing director, BTI
non-banking financial company. The investee rms What is crucial is that there is an
person who interviewed them was not alignment between the investor/PE
Consultants.
a company official, but a principal of a In demand is company, the promoter/leadership of Here are key findings of the study
talent in areas
private equity fund that had recently the investee company, and the inco-
of nance, HR
invested in the NBFC. and business, ming CEO/senior leader in terms of 1 WHO IS OFFERING E-commerce/startups
Private equity has come a long way people with the vision for the investee company, 40%
in the country, from fund manage- entrepreneurial said Dhanpal Jhaveri, managing part- SEVERANCE PAY
ment and investing to micro mana- ner at Everstone Private Equity. As a Majority of the organisations IT/ITeS
mindset 3 ACCEPTANCE/REJECTION RATE
ging businesses, and their influence
Funds want Increasing stake
group, we often directly work with our with an annual turnover of
more than `300 crore
20%
is not limited to the CXO level but in- portfolio companies to support their Senior industry 40% senior industry
creasingly extend to senior and to get the in portfolio
growth, and this deep operational ex- BFSI professionals professionals being
right talent companies are Sector-wise breakup
middle management. who can scale giving funds
perience helps us better in evaluating of companies offering 20% reject more than interviewed for
PE funds such as Kedaara Capital, potential CEOs and senior leaders for severance clause in a CEO 25% offers on avg C-suite roles
businesses more control over FMCG & FMCD on account of unsatisfactory negotiate on severance pack-
TrueNorth and Advent Internatio- protably hiring process our investee firms, he said. compensation arrangement
nal are extensively engaged in hiring K Sudarshan, managing partner at 20% severance pay packages ages that are offered to them
mid-senior to CXO level talent for the- executive search EMA Partners India, On average, 20% In almost all cases,
ir portfolio companies, industry insi- an Institute of Management (IIM) gra- said, When funds are the majority sha- of candidates negotiation on this
ders said. Principals, managing direc- duates who can intern/train with va- reholders, they want to ensure that the being aspect runs
tors and investment teams at these rious portfolio companies. This gives right kind of people are recruited. interviewed for parallel with other
funds are the first line of filters for hi- the grads exposure to various industri- Funds exercise more say when it is a leadership roles express elements included in a
ring at the investee companies. es and the companies an opportunity to controlling stake. reservations on severance formal offer and takes place
Others like Sequoia Capital, Multi- tap top talent who have the potential to A greater involvement of the inves- packages to initiate possible during the offer acceptance
ples Asset Management, Everstone be business leaders in the future, Ne- tor also helps in getting talent. A mar- negotiation on this aspect stage
Capital and Apax Partners, too, play a vatia said. quee investor adds so much more to
crucial role in CXO and CXO-1 level Some of CXO-level hirings in the past the ability of a company to attract top
hiring for portfolio companies, sour- 12-18 months where investor funds are talent, Sudarshan said. KEY DIFFERENTIATORS
ces said. said to have played a leading role in Motilal Oswal PE is said to have been Overall No of years of Sensitivity
We work not just as a traditional PE identifying and recruiting include Anil active for CXO-level hiring of cont- NON-COMPETE CLAUSE CTC being work exper- and
fund but also as a conglomerate. We Banchhor, CEO at RDC Concrete, and ract electronics manufacturer Dixon If there is a clause that restrains the employee to work offered ience/position business
have a dedicated team of seasoned Maninder Singh Juneja, CEO at NBHC. Technologies. with competition or in a particular location for a certain to a of a corporate impact of
HR professionals who not only hire They both are investee companies of AION Capital Partners is said to have period, then the severance package is higher candidate executive the role
for the portfolio companies but also TrueNorth. been closely engaged in the hiring of se-
see to it that best culture practices are Blackstone is said to have played a key nior management of Clix Capital, a ILLUSTRATION: ANIRBAN BORA

Samsung India to Hire


implemented at these companies, role in the appointment of Nitin Ra- commercial lending and leasing com-
said Vishal Nevatia, managing part- kesh as CEO at Mphasis while Apax pany run by former GE India executi-
ner at TrueNorth. Partners is said to have been involved ves Pramod Bhasin and Anil Chawla.
As volume of buyout deals increase in hiring of Sandeep Kishore, CEO at Kedaara Capital is said to have been
in India and PE funds have a greater Zensar Technologies. Everstone Capi- involved in senior-level hiring for Hy-
stake in their investee companies,
and are exercising a stronger hold in
people and talent, sometimes repla-
cing the entire existing management
tal is said to have played a crucial role in
senior-level hiring at Burger King.
PE deal size in India has gone up,
and funds are doing $500-750 million-
derabad-based diagnostic chain Vijaya
Diagnostics.
CX Partners was involved in Mrs Bec-
tors Food senior sales hiring.
2,500 Engineering
Graduates in 3 Years
with seasoned professionals, HR and plus deals. There is a lot of focus on PEs are playing an active role in eng-
talent experts said.
According to Nevatia, the performan-
hiring professional talent in portfo-
lio companies, said Anshul Lodha,
aging and selecting leadership talent
for portfolio companies with an objecti- WAYS
ce of any business is directly proportio-
nal to the talent which is there in the bu-
siness and hence getting the right ta-
director at recruitment agency Mi-
chael Page India.
Initially, PEs would pick small stake
ve of deriving long-term value, said
Vivek Kapadia, director at executive se-
arch firm Vito India. Funds want peo- Sreeradha.Basu@timesgroup.com
India. Our R&D centres in India work on
cutting-edge technology to develop innova-
TO
lent on board is critical not just at the in promoter companies and literally ple from established organisations tions that are centred on Indian customers
top but all the way up. have no say. But with stakes increa- with an ability to scale businesses pro- Mumbai: Samsung India will hire 2,500 preferences and also contribute signifi-
Funds such as TrueNorth run mana- sing, the level of engagement of funds fitably and create shareholder value, graduates from the countrys top enginee- cantly to global products, said Shah.
gement training programmes for Indi- with investee companies has gone up he said. ring institutes over the next three years in There is a large need for talent. We will be
what is being billed as one of its largest re- hiring across streams like computer scien-
cruitment drives to ramp up research and ce, electrical engineering, mathematics
Lack of Available development talent. and computing and applied mechanics, Be a Good
A majority of these fresh hires will be for among others.

Talent Key Impediment new-age domains such as Internet of


Things (IoT), artificial intelligence, ma-
The companys Bengaluru R&D centre is
the biggest outside South Korea, where re-
Listener When
to Hiring, says Report
chine learning, big data and biometrics,
Dipesh Shah, global senior vice president
search is being done on smart devices, se-
miconductors, printers, modems, Internet
Youre the Boss
at Samsung, told ET, adding that a 1,000 eng- protocols and networks. Among the core Theres immense pressure on leaders to
ineering graduates will be absorbed this areas being worked on are artificial intelli- manage a number of internal and external
Brinda.Dasgupta@timesgroup.com relationships. However, the workplace
gence, machine learning, natural langua-
environment can help navigate through
ge processing, IoT, augmented reality and
these complexities and give leaders a
Bengaluru:More than half the C-suite leaders in networks including 5G in Bengaluru, and
India cited a lack of available talent as the biggest On the Job biometrics, mobile software develop-
ment, multimedia and data security in No-
platform to listen more than talk.
Varuni Khosla finds out five ways to be a
impediment to hiring, according to the Workpla-
good listener as a boss.
ce Agility Barometer Report, based on a survey Samsung India is planning to hire ida. Delhi works primarily on research re-
conducted by talent management solutions pro- 2,500 graduates from the countrys lated to high-end televisions, other consu-
vider KellyOCG. Further, 46% respondents said top engineering institutes over the mer electronics products as well as the
that they expected negative impact on their busi- next three years. This year, it plans operating system Tizen.
ness due to this shortage. to hire 1,000 The three centres together employ about
The survey was conducted among more than 200 8,000 workers.
C-suite leaders across India, Singapore, Australia Although Shah said the aggressive hi-
and Malaysia from industries including banking Engineers Majority of these hires ring is not driven by competition, analysts
recruited off will be for new-age
and financial services, life sciences, healthcare said that Samsung is definitely feeling the
campus will be domains such as
and medical services, and manufacturing. heat, in light of the fact that as per the la-
absorbed in R&D Internet of Things,
The study determines the state of workforce agi- centres in artificial intelligence,
test numbers from research firm IDC, Chi-
lity in businesses or their ability to swiftly scale Bengaluru, Noida machine learning, big nese smartphone maker Xiaomi has
up workforce in times of uncertainty and disrup- and Delhi data and biometrics caught up with it for the top spot in the In-
tion, and how they are transforming their talent. dian smartphone market.
The major difficulties organisations in India fa- In the third quarter of 2017, the two
ce in attracting talent, as per the study, include a year in the companys R&D centres in smartphone makers accounted for 23.5%
lack of available talent (52%), a lack of a holistic Bengaluru, Noida and Delhi. each of the smartphone shipments in the
and diversified strategy (57%), a lack of engage- This placement season, the South Korean country. The bulk of revenues for Samsung
ment on digital media (52%) and a lack of employ- mobile phone and electronics major has al- are generated by smartphones.
er branding (41%). ready mopped up talent for R&D across the Samsung is retaliating in the only way one
Three-fourths of respondents said they were lo- National Institutes of Technology (NITs) can: I can R&D you out, said Sandip Das,
oking at ways to improve the ability to attract ta- and other premier institutes such as BITS senior advisor of Analysys Mason, a global
lent. These include implementing higher pay, rol-
ling out good employee benefits, allowing smoot-
Pilani, Manipal Institute of Technology,
Delhi College of Engineering and Delhi
consulting and research firm specialising in
telecoms, media and digital services.
1 Office Landscape
her internal transfers, offering strategic talent Technological University. Now, it is hiring In this business, obsolescence comes in Creating an environment for clear communica-
development and offering ample training pro- aggressively in final placements across the extremely quickly and even the smallest tion gives more opportunity for open dialogue
grammes. Indian Institutes of Technology (IITs). Its competitor can sometimes overtake mar- and chance encounters. At most organisations,
58% leaders sit in closed offices. This makes it
Almost 70% of the top executives we surveyed recruitment offers at the IITs alone are ex- ket leaders. However, if you have a strong
difficult for employees to spontaneously pursue
recognised that a contingent workforce consis- pected to be well upwards of 300, the com- innovation engine, you can lead the way their managers, which leads to restricted or
ting largely of temporary workers, freelancers pany said. and destroy your own products instead of superficial conversations. Another thing to do is
and independent contractors gives them access For Samsung, which has always invested waiting for someone else: keep the canni- to make room for private spaces, which encour-
to specialist skills and expertise that lie outside heavily in R&Dits global spends in 2016 bal in the family so to speak. Thats what ages one-on-one meetings, without causing
the organisation, Francis Padamadan, country on the segment was about $13 billionthis Samsung is doing by taking advantage of distractions, says Praveen Rawal, managing
director of KellyOCG, told ET. years hiring will be a 25% jump over the the vast pool of Indian engineering talent. director, Steelcase India and Asia Pacific.
More than 70% respondents said they anticipa- last years 800-odd grads. Last year, Sam- In the process, it will also endear itself it to
ted the percentage of contingent workers in their
organisation to increase over the next two years.
sung was the top recruiter at the IITs.
Samsung is extremely bullish on R&D in
the Indian government and Indian consu-
mer, said Das.
2 Compassion is Essential
When you show care and compassion to your
employees, they tend to work harder and
better. This helps them realise that the company

Gender Diversity Initiatives Not Effective: Survey is as much theirs as it is yours, and fosters a
sense of ownership and responsibility. Instead
of looking at people as tools and resources,
value them as individuals and assets not limited
companies. The survey showed Diversity is neither a check box to their technical skillset, says Ketan Kapoor,
Rica.Bhattacharyya
@timesgroup.com
Short of the Mark that gender diversity measures
have helped more women in
nor nice to do. It is a business
imperative.
co-founder of Mettl.

50% of initiatives not multinational companies opera- Kidwai, former chairperson of


Mumbai: India Inc.s gender effective primarily due to ting in India (33%) than those HSBC India, said biases still 3 Empathise
diversity initiatives are failing to poor implementation working in Indian companies exist, especially against mid- Empathy can be a powerful show of listening.
make a mark. While most compa- women think advance- (27%). career women and whether they Never think that it is a sign of weakness or lack
nies have inclusive policies in 36% ment is a critical obstacle, The gap remains because of will leave when they have child- of leadership. Expressing concern over your
place such as career advance- only 8% men agree poor implementation even ren. While flexi working and co-workers and employees general well-being,
ment and fair deals for women while ticking the box on best sabbaticals are provided by health and fitness go a long way in ensuring that
Men feel recruitment is communication acts as an effective stress buster
returning to work after breaks, the biggest challenge to
practice, said Naina Lal Kid- companies to retain women,
they dont have a real impact, for both you and your employees, says Kapoor.
gender diversity wai, Chairman of the India giving them a fair deal when they
according to a survey by pro- Advisory Board of Advent return fulltime remains a chal-
fessional services firm BCG. DIVERSITY NUMBERS International Private Equity. lenge, she said. 4 Emotional Intelligence
Almost 60% of the women Women representation in
The focus often times is about Nirmala Menon, founder of Understand, empathise and show interest. Part
respondents in the BCG survey, Indian rms stands at 27% of counting the numbers and not on Interweave Consulting, a Benga- of an effective leadership is to listen passion-
shared exclusively with ET, countrys total workforce vs how the gender-diverse employe- luru-based firm that focuses on ately, whether or not you can fully relate. You
agreed that their company is 38% globally. es are being assimilated in their diversity management and in- must have the emotional intelligence to identify
focused on promoting diversity, roles and in the company, said clusiveness in the workplace, said with others and respond acceptably. Leading a
Women account for just 17%
but only 29% believe they be- Vinita Bali, strategy advisor and that even if women are being team of diverse individuals that are meant to
of senior management posi-
nefited. Poor implementation is independent director on several given benefits and support such follow a single vision is a tough job. A high
tions vs 26% in emerging Asia
the primary reason that 50% of boards. If boards and CEOs as flexible time options during degree of emotional quotient lures you to listen
Pacic nations
the initiatives have not been have conviction, they must drive key life stages, many do not and draw out more information while not just
In BSE 500 lending your ears. A frequent casualty is the
effective, showed the survey it. Diversity initiatives flounder translate into advancement and
companies, loss of connection with people. Without
titled From Intention To Impact only 3% of for lack of belief and therefore, growth and they get sidelined
emotional skills and awareness, leaders lose
Bridging the Diversity Gap in the CEOs are lack of the right and sustained along the way. interest in listening and fail to develop broad
the Workplace. women actions. CEOs and the top management organisational intelligence, says Rawal.
Source: BCG
BCG surveyed about 1,500 Women perceive career pro- have to lead by example, said
senior men and women leaders gress as the largest obstacle but women leaders of India Inc. It
across 25 large Indian private and slow and results woefully short of only 40% of the companies have has to be an agenda driven by the 5 Avoid Interrupting
public companies including expectations, said Priyanka interventions in advancement CEO and the leadership team Read between the lines and listen to what is not
Hindustan Unilever, Dr Reddys Aggarwal, a partner at BCG who with only 14% of the senior lea- with the core idea being compe- being said out loud. Great leaders are often very
Laboratories, Lupin, PepsiCo, leads the Women@BCG initiative ders considering it a top priority tency and not diversity for the mindful of their surroundings and pay a lot of
Mondelez, Mphasis, Axis Bank, in India. Diversity initiatives at for future interventions. sake of diversity, said Bali. attention to both verbal and non-verbal
State Bank of India, Bank of Indian corporations have yet to The fact that only 14% of senior Falguni Nayar, founder of communication. Leaders who are mindful of
Baroda, Aditya Birla Fashion & show significant impact on the leaders consider it a priority is a beauty and wellness product whats happening around them are not only just
Retail, Hero MotoCorp and TVS ground. clear pointer to the lack of convic- startup Nykaa.com, said compa- absorbing information, they are also engaging
Tyres. Companies are investing On an average, respondents tion and possibly a bias, recko- nies have made a lot of progress actively in conversations, making the whole
time, energy and money in diver- were aware of 12 out of 39 diversi- ned Bali. The key obstacle is the but it will take some time for the process constructive, says Kapoor.
sity initiatives, but progress is ty-related initiatives in their mindset of decisionmakers real impact to be seen.
ETMarkets
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SMART
INVESTING
Operating
Assets of 60
Firms Grew
Faster Than GDP
Beating Volatility WWW.ETMARKETS.COM
NEW DELHI / GURGAON, TUESDAY, 5 DECEMBER 2017

AT 21%, MSCI INDIA underperforms Russia, Brazil and Chile indices in the last 63 MOONS STOCK ENDS 5% LOWER AT `131.1
Market Trends
two years; Foreign investors remain worried about high valuations in country
Bombay HC
Rupee Trailing EM Peers
STOCK INDICES % CHANGE
0.06

Upholds NSEL
Nifty 50 10127.75
Sensex 32869.72 0.11

MSCI India 850.7 0.36


0.63

Merger Order
MSCI EM 2437.86
MSCI BRIC
MSCI World
SX 40
Nikkei
Hang Seng
619.72
8333.38
19576.91
22707.16
29138.28
0.45
0.17
0.14
0.49
0.22
Hurts India Dollar Returns Dismisses 63 Moons
said. It is reported that almost
99.99% of the ostensible spot trad-
ing in commodities in the entire
Ashutosh.Shyam@timesgroup.com Index Performance of MSCI PE Spread MSCI India Currency Performance of country was taking place on the
Strait Times 3438.47 0.32 India & Emerging Market and MSCI EM index Emerging Markets
petition against govt NSEL Spot Exchange.
ET Intelligence Group: During the four years through
Values in US $, Gross At 7 pm IST
Benchmark Indian equity indices
175 MSCI India 80 PE Spread
Russia Ruble 49.63
order to merge its 2013, the court noted, the paired con-
MSCI EM index 146.0 Avg PE 50.66
OIL ($) BOND are at record levels. But, thats not tracts offered by NSEL alone ac-
enough to amuse foreign investors 150 MSCI World index 60 defunct subsidiary counted for a turnover of `1.34 lakh
DUBAI CRUDE 10-YR YIELD Brazilian Real 48.63
since Indian indices have under- 127.4 crore. It observed that these con-
60.71 7.08
performed the emerging market 125 40 NSEL with itself tracts were in violation of the gov-
0.14 0.02 South African Rand 28.09
benchmark in 2017 for the second ernment exempting NSEL from the
Absolute Change Figures in % 125.9
consecutive year. 100 20 provisions of the then extant
Chilean Peso 20.31
GOLD RATE The dollar returns of the MSCI 27.53
Since Our Bureau Forward Contracts Regulation Act.
Prices per Troy Ounce ($) Russia, MSCI Brazil and MSCI Chile Jan 2016
75 0 Columbian Peso 15.73
US India was 46%, 89% and 37%, respectively, Jan 4, 2016 Nov 30, 2017 Dec 3, 2012 Nov 30, 2017 (Against US Mumbai: The Bombay High Court
compared with 21% of the MSCI dollar) has dismissed 63 Moons petition
OPEN 1277.60 1414.05 Source: Bloomberg,compiled by ETIG
India in the last two years. against a government order to
LAST* 1276.00 1407.87 The MSCI India index a key better currency performance valuations of Indian equities are not higher than the long-term average. merge its defunct subsidiary NSEL
*At 10.30pm, After adjusting for import duty, gauge for global fund managers to helped prop up returns of emerging favourable for a fund manager to in- As a result, some of the global fund with itself in public interest after
Indian spot gold lower by $ 4.27 to US Comex evaluate their performance in dollar markets other than India. The cur- crease exposure considering that managers have reduced the over- being satisfied that the two compa-
gold price on Monday. The premium on local gold terms has underperformed the rency appreciation against the dol- earnings growth forecast was low- weight of India to just over 150 basis nies operated as one entity and, in
is due to tight supply following import curbs.
MSCI EM index by 11% and 8% in lar in the resource-rich countries ered for the fifth year in a row. The points (bps) from as high as 500 bps business reality, all stakeholders
FOREX RATE (`-$ Exchange Rate) 2016 and 2017, respectively. The dollar such as Russia, Brazil, South Africa, price-earnings spread of the MSCI two years ago. Overweight reflects looked upon them as a single entity.
returns are a keenly watched matrix and Chile was 20-50% in the past two India was at 50% premium to the the percentage of higher weight in The order highlighted the vital
OPEN LAST* for foreign fund managers investing years compared with 14% for the MSCI EM index compared with the allocation to a country compared importance of stock and commod-
64.57 64.38 with a medium-term perspective. Indian rupee, according to the long-term average of 40%. Indian eq- with weight specified in the bench- ity exchanges to the national econo-
There are several reasons for Bloomberg data. uities currently trade at 21 times the mark index, MSCI Emerging my, and gave reasons why it would If exchanges such as these are
Market on Twitter@ETMarkets Indias underperformance. First, Second, the absolute and relative next years earnings, which is 31% Market index in this case. not interfere with the impugned permitted to be subverted or fail
(merger) order filed under Section without honouring their obliga-
396 of the Companies Act, 1956. tions and commitments, the confi-
US Tax Cut Plan PREMIUMISATION, HIGH AVERAGE REALISATION KEY Rupee Cheers GDP, PMI However, the high court gave 63
Moons 12 weeks to appeal in the
dence in national economic insti-
tutions is bound to suffer and the
Pushes Wall St Data; Up 9 P to 64.37
Heres Why Some
Supreme Court, to which, the com- repercussions to the national
pany said it would. The companys economy will be severe. In such
to New Record The rupee on Monday rebounded stock ended 5% lower at `131.1 on situations, a negative perception

Automakers Top
by 9 paise to end at 64.37 against BSE after the order. about the business environment of
Wall Street stocks the US dollar in a highly volatile The high court bench, headed by the country is created, which has
touched new record Chief Justice Manjula Chellur, grave repercussions on the nation-
trade on fresh selling of the green- said stock and commodity ex- a l e c o n o m y. T h e C e n t r a l
highs early Monday

The M-cap Charts


back and also emboldened by encouraging Q2 changes provide vital hubs for in- Government, quite conscious of
following the Senate GDP numbers and monthly manufacturing vestors and traders to trade in all such factors, has taken a bal-
passage of a massive and long- data. The rupee opened sharply lower at shares and commodities. anced decision..
awaited tax cut plan. The blue- 64.55 compared to last Thursdays close of Commerce in the modern econo- To 63 Moonss contention that
The value assigned by In comparison, the worlds
chip Dow Jones Industrial Av- investors to automobile top two car makers Toyota 64.31 on sustained dollar pressure. It drifted my is inconceivable without them public interest was being improp-
erage hit a record of 24,534.04 and the perception of the Indian erly applied under Section 396 of
companies does not hinge just and Volkswagen (by volume sharply to hit a fresh intra-day low of 64.57 in economy, both locally and abroad, the Companies Act 1956 to force-
points before giving up some of on annual sales volumes. A lot and market cap) have mid-morning deals before making a spirited depended to a large extent on the fully merge a loss-making subsidi-
the gains. The broader S&P 500 depends on the product mix valuation per car at $22,565
recovery. After scaling a high of 64.28 to- functioning and health of its stock ary (NSEL) with a profit-making
index set a new record high at or the share of the earnings and $9,955 a fraction of
from premium cars and also the value commanded by wards the fag-end trade, the local unit finally and commodity exchanges, the parent (63 Moons) in disregard of
2,665.19 points. US stocks are on the average realisation Ferrari and Tesla. Toyota settled at 64.37, showing a gain of 9 paise, or bench pointed out. limited liability and interest of
adding to last weeks strong per vehicle. Typically, larger and Volkswagen sold nine 0.14%. It dropped to a low of 64.57 in intra-
The failure of a national-level FTIL shareholders and creditors
gains in early action, with Sat- commodity exchange, under cir- in favour of that of investors on
the share of the premium million and 10.3 million cars, day trade. The RBI, meanwhile, fixed the ref- cumstances as stated in the im- NSEL, the order said:
urdays passing of the Senates cars in the business mix, respectively, in 2016.
erence rate for the dollar at 64.3799. PTI pugned order, is clearly a matter of
tax reform bill boosting opti- higher will be the market The price-earnings (P/E)
valuation. For instance, multiple of Toyota and serious concern, the court order Continued on XX SMART INVESTING
mism... said analysts at Charles Ferrari which sold 8,014 cars Volkswagen was 10.1 and 6.7,
Schwab brokerage. After mar- with average realisation of respectively, based on next
athon talks in Washington law- $428,850 per unit in the past years projected earnings.
makers finally passed contro- scal, commands a market On the other hand, Ferrari
versial reforms to the tax capitalisation of $20.3 billion. trades at a forward P/E of
Similarly, US car maker Tesla 30. Maruti Suzuki, Indias
system, which the president has a market cap of $51.5 largest car maker, has market
says will fire up the worlds billion and sold 76,285 cars in cap of $25,524 per car and a
number one economy. the previous scal, according forward P/E of 25.5. Maruti
to Bloomberg data. Based Suzuki commands premium
Bloomberg
on the last scal revenue of to global carmakers thanks to
$7 billion, Teslas average the dominant market share
realisation works out to be position in the one of the
$91,762 per car. This means, fastest-growing car markets in
market cap per car sold in the world.
Sebi Order on Single a year was $2.5 million for Ashutosh R Shyam

Consolidated Ferrari and $675,332 for Tesla. /ETIG


Carmakers with highest m-cap per unit of annual volumes
List of MF Stocks Market 1 yr Market cap Next year
Sebi on Monday Company cap forward per unit of earnings
said mutual funds ($ bn) PE volume ($) growth (%)
while preparing sin- Ferrari 20.31 30.28 25,33,926 8.21
gle consolidated list Tesla 51.52 6,75,332 59.11
of stocks should consider aver- Porsche Auto 25.49 5.54 1,07,202 18.65
age full market capitalisation of BYD Company 25.49 24.21 60,397 50.06
the previous six month of the Geely Automobile 32.25 16.92 42,106 35.45
stocks. This is in partial modifi-
Tata Motors 19.93 8.79 36,543 60.33
cation of its earlier circular on
Daimler 87.56 7.66 29,203 -1.09
reduction of similar mutual
ANIRBAN BORA

fund schemes. The regulator BMW 65.28 7.77 27,573 -1.04


said whenever the portfolio Isuzu Motors 13.00 11.32 25,685 9.72
duration is reduced below the Maruti Suzuki 39.95 25.49 25,524 19.46
specified floors of three years Most valued global car companies by M-cap
and four years in respect of 240 12
medium and medium-to-long
duration funds, respectively, 180 9
the asset management compa- 120 6
ny will be required to record
the reasons for the same with 60 3
adequate justification and 0 0
maintain the same for inspec- Toyota Volks- Daimler BMW General Honda Saic Tesla Ford Nissan Maruti
tion. The written justifications Motor wagen Motors Motor Motor Motor Motor Suzuki
need to be also placed before Market cap ($ bn) (LHS) Annual auto sales worldwide (mn units)
Source: Bloomberg, ETIG database
the trustees. Our Bureau

We Should Not Just Look at US...


Very Optimistic About India
Q&A Ray Dalio important economy, the Indian
economy, the Chinese economy,
Founder, Bridgewater Associates the Asian economy, the world
In an exclusive interview with proach to life. What motivated economy are also very impor-
ET Nows Tanvir Gill and me was that I am at a stage in tant. So, we should not just be
Nikunj Dalmia, Ray Dalio, found- my life where I feel the respon- looking at the US economy.
er, Bridgewater Associates, dis- sibility for passing on my The US economy is going to
cusses his book Principles: Life & knowledge. That is why I did benefit from stimulation by a
Work and also the current mar- this book. It is not about the combination of reduced regula-
ket conditions and his outlook on hedge fund. Over a period of 25 tions. It will produce a bit of a
India. Dalio talks about how mis- years, I wrote down the essen- pickup in the economy but not
takes are steps to knowledge and tial recipes for success and they very much.
what lies ahead for the markets. helped our relationships and If you lower corporate tax
Edited excerpts: helped us to be more success- rates, then by necessity the
ful. I accumulated those and de- growth real, inclusive and sus- stocks are worth more and that
What inspired you to write this cided to pass those along. tainable and can it fuel markets is not necessarily commensu-
book and how easy was it as a even further amidst the rate rate with the benefit of the
hedge fund manager to share Today, We are seeing rates go tightening cycle? overall economy.
your edge with the world? up in the US. Whats your out- It is important to realise now that
Continued on XX
This is mostly a book about ap- look on the US economy? Is the while the US economy is a very
MONEY MATTERS
https://t.me/TheHindu_Zone https://t.me/pdf4exams

10 Smart Investing THE ECONOMIC TIMES | NEW DELHI / GURGAON | TUESDAY | 5 DECEMBER 2017

What
to Buy, Sell
FUND REVIEW

Make Market Dynamics Work for You


ICICI Prudential Balanced Advantage Fund Day Trading Guide ICICI Direct

We expect the index to garner strong demand


in the 10,000-10,100 region where the current
down move from life high of 10,490 will achieve
price wise equality with the last falling segment.
and Hold Many retail investors are entering the markets through the mutual
fund route for the first time. In a scenario where markets are trading PORTFOLIO CHANGE (PAST 6 MONTHS)
Therefore, we believe the current decline
should be used as an opportunity to accumulate
Agro Tech Foods close to their all-time high and earnings growth has been flat for the New Entrants Complete Exits Increase in Allocation quality stocks in a staggered manner.
640 Price on BSE (`) past four years, financial planners say that instead of investing in
595.5 Aegis Logistics BPCL Max Financial Services DHARMESH SHAH
458.8
pure equity funds, first-time investors making should enter the equity
market through dynamic asset allocation funds. These funds reduce Ashok Leyland Jubilant FoodWorks IndusInd Bank
Tech Picks Head Technical
560
or increase their exposure to equity in the portfolio based on market Bank of Baroda GAIL (India)
BANK OF BARODA
480
valuations and are less risky or volatile compared to pure equity funds.
ICICI Prudential Balanced Advantage Fund, the largest in the space HYBRID ASSET
BUY
Stock attracting demand at 61.8% retracement
with assets of `22,465 crore under management, uses the price-
RETURNS (in %) ALLOCATION- AVG of previous up move and long term 200 DSMA. TARGET
400
Dec 5, 2016 Dec 4, 2017
to-book-value ratio of the market, to decide its equity allocation. PERIOD CAGR RETURN SIP CAGR RETURN ANNUALISED RETURN
LAST CLOSE X `170 STOP LOSS X `158
188
`
Rebalancing is done on a daily basis. Its equity exposure can range
1 Year 16.99 15.31 14.01
IFL has upgraded the ratings anywhere between 30% and 80%, with debt making
up the rest. For example, when the Sensex was at 3 Year 10.26 12.69 9.31 INOX LEISURE
of Agro Tech Foods to buy
with a target price of `675 23,002 on February 29, 2016, with the price-to- BUY
5 Year 14.23 14.85 12.32 Stock in uptrend forming higher peak and high-
citing pickup in its foods book value of the Nifty at 2.81, the fund had a TARGET
er trough supported by rising channel.
business. Company seems 76% net equity exposure.
RETURNS PEER COMPARISON (in %) 305
`
to be getting its act together With valuations inching up, the fund has LAST CLOSE X `278 STOP LOSS X `265
trimmed its equity exposure to 37% as of 1-YEAR 3-YEAR 5-YEAR
after three years of disap-
October 2017. Over the past year, the
pointing performance, said Birla SL Balanced Advantage Fund (G) 14.30 10.34 13.17 PFIZER
the brokerage. The stock fund has delivered a return of 16.08%,
and it also uses derivatives to hedge IDFC Dynamic Equity Fund-Reg (G) 15.57 6.12
BUY
declined 3.77% to `595 on Stock trading above the recent triangular consol-
idation breakout area augurs well going forward. TARGET
Monday. against the downside or generate arbitrage
returns. The equity portion is mainly
L&T Dynamic Equity Fund-Reg (G) 10.58 5.16 13.77 ` 2,035
Motilal Oswal Securities has invested in large-cap stocks, while in the LAST CLOSE X `1,924 STOP LOSS X `1,870
MOSt Focused Dynamic Equity Fund- (G) 20.60
maintained its buy rating debt portfolio, the fund does take some
on Sadbhav Engineering Source: Accord Fintech, Compiled by ETIG Database
duration calls help make the most DHFL
with a target price of `435. of rate declines. It also has some AMOL JOSHI,
SELL
The company is well placed allocation to below-AAA corporate
Expert Take founder, Plan Rupee Lower low on the monthly chart and a rising
TARGET
to take advantage of the channel breakdown on weekly chart.
upcoming opportunity in
bonds for higher This fund is suitable at current market levels where valuations are a 559
`
accruals. concern. It is a good bet for investors who do not want to time the market, LAST CLOSE X ` 591 STOP LOSS X ` 608
the `7 trillion road sector,
Prashant Mahesh / as it uses a model to do it.
given its execution capabil- Mumbai
ity, management bandwidth AMIT GUPTA
and recent balance sheet im- F&O Strategy Head- Derivatives
provement, according to bro-
kerage. Shares of Sadbhav
HIGH VALUATIONS make it a speculative THEYVE GROWN 15-40% ANNUALLY IN FIVE YEARS Buy Mindtree
CMP: 552 Target: 595 Stoploss: 530
Engineering declined a per-
cent to `375 on Monday.
Edelweiss has maintain its
buy rating on ONGC with a
Operating Assets
investment, but cos domain expertise
could help it outperform the peers
RATIONALE:
a) Mindtree has come out of the last 1-year supply zone of | 540 on
the back of higher volumes and decreasing short positions in the

Future Supply: A of 60 Firms Grew


futures space. This may keep the stock resilient and it can move
target price of `241 and said
higher.
that the company is at in-
flection point as volumes are b) In the last three months, volumes have increased by 48% in the
stock. The average price at which these volumes are realised is
set to revive. Expected struc-
seen near | 515 levels.

Risky Bet, but has Faster Than GDP


tural revival in gas volumes
and improving price outlook Buy Zee Entertainment
place ONGC in a sweet spot, CMP: 566 Target: 594 Stoploss: 551
said the brokerage. ONGC
shares gained 1% to `181 on RATIONALE
Monday.
HDFC Securities has recom-
mended to buy Timken India
with a sequential targets of
Bright Prospects The Frontbenchers

YTD
Avg
Operating
Analysts Asset Growth
a) Media stocks have witnessed closure of short positions resulting
in stocks resilience even in jittery market conditions.
b) The open interest in Zee Entertainment has declined by 38% due
to short closure. Infact the current series has started with 24%
lower short positions than seen at the inception of previous series.
`982 (40x FY 2020 estimat- What the Numbers Say Return Rating in FY 16 & PE FY 2019
ed EPS) and `1,054 (43 times CMP (Rs) (%) (1- 5) FY17 (%) Estimated AMIT GUPTA
FY 2019 estimated EPS) in Fig in `crore,
except margins FY15 FY16 FY17 CAGR ISSUE DETAILS PC Jeweller 390.8 97.4 4.8 18.0 20.1
Fx Technical Head- Derivatives
Issue opens
4-6 quarters. The acquisition Godrej Consumer 978.5 29.6 3.6 21.0 37.8
Revenues 407.9 519.8 561.1 17.29 December 6, 2017 BUY USDINR AT 64.40 64.50
of ABC Bearings has further TVS Motor Co 726.3 101.5 2.4 13.0 34.3
Issue closes
strengthened its position EBITDA 66.69 78.53 90.08 16.22 December 8, 2017
Target: 65.40 Stop loss: 63.90
Natco Pharma 947.4 63.4 4.6 29.0 18.1
in tapered roller bearings Issue price RATIONALE:
market and provided an en- EBITDA margin(%) 16.35 15.11 16.05 - Motherson Sumi 362.9 66.7 4.2 36.0 25.2
`660-664
try into wheel-end bearing Timken India 887.7 48.6 3.9 18.0 34.7 7UHQGRIKLJKHUERQG\LHOGVDQGFUXGHRLOSULFHV QHDUO\DWWZR
36.23 Issue size
segment which is estimated
Prot 24.65 29.42 45.75
`646-650 cr
year high) continue to weigh on the INR. INR has also come
Thomas Cook 242.0 28.0 4.5 33.0 22.6
to be `400 crore market,
Source: RHP down to key positional support of 64.35, this level has acted
Vinati Organics 994.5 69.0 3.8 14.0 23.9
said brokerage. Timken stock as support on multiple occasions.
food distribution centre (IFDC) in Syngene International 560.7 -0.2 3.9 23.0 28.5
gained 3.17% to `884. IPO WATCH Kolkata and is looking to set up five SOURCE: Bloomberg, ICICI Securities
7KHFXUUHQWVWUHQJWKLQ,15ZDVPDLQO\RQWKHEDFNRI'ROODU
new IFDCs across the north, east weakness. With Dollar Index coming back to key support level
Rajesh.Naidu@timesgroup.com and south regions of India. (and tax reform likely to become a realty in near future), short
In the coming quarters, the com- Operating asset growth includes term up move may be seen in this.
Smallcap Mantra ET Intelligence Group: Future pany is expected to benefit from the
Most cos are from IT, growth in fixed assets, intangibles
Supply Chain Solutions (FSCS) GST, increasing outsourcing of lo- and other assets including current RESISTANCE 64.90 65.40 65.60
Kirloskar Ferrous plans to hit the primary market to gistics services and its diverse pres- assets deployed in the business and
give partial exit to private-equity ence across various sectors. Given pharma & discretionary does not include short-term liabili- SUPPORT 64.30 64.00 63.80
CMP (`) 106.50 investor Griffin Partners and pro- its business model, these factors are ties. It includes the effect of both
1-M Return (%) 35% moter Future Enterprises. Pan- expected to boost its revenues in the consumption sectors organic and inorganic capex along
Sell EURINR in the range of 76.65 76.75
52-week H/L 113/65.50 India operations, asset-light busi- coming quarters. with expansion in business activity Target: 75.2 Stop loss: 78.50
FY18E PE (x) 29.3 ness, and possible benefits from the through growth in current assets. RATIONALE:
Goods and Services Tax (GST) are FACTORS IN FAVOUR Rajesh.Mascarenhas@timesgroup.com If the company puts itself in a
Exciting future growth pros- major positive factors for FSCS. On situation that capital deployment (XURLVIDFLQJVWURQJUHVLVWDQFHQHDUDQGGHVSLWHRIWKH
pects await Kirloskar Ferrouss the other hand, its demanded valua- In the coming Mumbai: Private investment results in widening of existing stronger data, it has been unable to take out this level. This
(KFIL) castings business which
boasts of a strong product
tion looks expensive compared with
that of some of the listed peers. This
quarters, the growth in India has remained slug-
gish in the past few years. However,
moats (expansion of return on oper-
ating assets), then it results in faster
suggests most of the positive news have been priced in.
86'ROODUFRQWLQXHVWRILQGVXSSRUWQHDUOHYHOV:LWKWD[
profile and customer relation- makes the IPO suitable for investors
with an appetite for high risk.
company may about 60 of the 265 listed non-finan-
cial companies with a market capi-
growth and lower risk resulting in
valuation re-rating and high perfor- reform moving one step closer to reality, the dollar is likely to
ships, sustainable competitive
strengths and satisfactory de-
benefit from the GST, in- talisation of more than `5,000 crore mance said Vinod Karki, vice-pres- stage a pullback from current levels. A move above 2.45 on
BUSINESS have bucked the trend with a strong ident equity strate g y, ICICI US 10Yr could very well ignite strength in US $ towards 95.
mand visibility. We expect an FSCS, incorporated in 2006, oper- creasing outsourcing of growth in operating asset base at a Securities.
impressive EBITDA/PAT CAGR
of 28%/29% during FY 2017-
ates in three segments: contract lo-
gistics (warehousing, distribution),
logistics services and its much faster rate than nominal GDP
growth over the past five years.
In general, new investments are
expected to accelerate growth, but
RESISTANCE 78.5 78.8 79.0
SUPPORT 76.6 76.0 75.0
20 driven by castings volume express logistics (point-to-point,
time-definite transportation) and
diverse presence across These companies are mostly from
pharma, discretionary consump-
they also bring additional risks
such as lower return from new in-
CAGR of 19% coupled with cost
efficiencies. KFIL features a
temperature-controlled logistics various sectors tion, IT and select industrial firms vestments, increase in financial
well invested asset base with
(cold-chain warehousing, distribu-
tion of perishable products). FINANCIALS AND VALUATION
sectors, according to a study by
ICICI Securities.
leverage risk, currency risk, regula-
tory risk, which can nullify the ex-
HC Upholds NSEL Merger Order
spare capacity of 50%/25% in The company offers automated In the past three years to FY17, the For instance, Eicher Motors oper- pected return from new invest- failed to settle their obligations ow-
Castings/Pig Iron, increasing and IT-enabled warehouses, distri- companys revenues increased by ating assets have grown by an aver- ments, he added. From Markets Page 1 ing to the absence of commodity
share of high-margin casting bution and other logistics solutions 17.3% annually to `561.2 crore. Net age 26% in the past five years. Stocks with more than 3.5 of 5 ana- stocks against which they raised
business and cost efficiencies to clients across sectors such as profit rose by 36 to Rs 45.75 crore. Ajanta Phar ma and Natco lysts rating such as Godrej The concept of public interest, `5,600 crore from 13,000 investors.
from upcoming low-payback FMCG, healthcare, and retail. Considering its FY17 earnings, the Pharmas average annual operating Consumer Products, TVS Motors, especially in context of amalgama- After the court order, 63 Moons
Apart from Future Group, some of issue commands a price-earnings assets have grown by 24% and 28% Natco Pharma, Motherson Sumi tion of companies includes not chairman Venkat Chary said:
projects. We believe that it
its clients are Pepe Jeans India, (P/E) multiple of 57. This looks a bit respectively during this period. Systems, Timken and PC Jewellers merely the interests of sharehold- This is a worrisome development
merits rerating based on an Reckitt Benckiser (India), and on the expensive side compared Operating asset growth of compa- among others with high operating ers or employees of the company, for corporate India as the after-
attractive cash flow yield of Kellogg India. with the average industry P/E of 48. nies such as Britannia, Timken, assets growth over the past two but would also include the interests math is likely to be chaotic, im-
11.4%/15.9% (FY19E/20E). FSCS, which has a state-of-the-art However, given its asset-light busi- Ashok Leyland, Minda Industries, years exceeding nominal GDP of the investing public, the general pacting investment flow into
Centrum Broking distribution centre at the Multi- ness model, domain expertise and Avanti Feeds and MRFs have grown growth could create value from public and national economy. India...investors will always be
modal International Hub Airport at opportunities in the sector, the com- between 15% and 40% annually in their asset growth in coming years, The NSEL scam surfaced in 2013 scared to invest in parent compa-
Nagpur, has set up an integrated panys growth prospects are bright. five years. according to ICICI Securities. after 22 members on the exchange nies with subsidiary companies.

Market Intelligence Powered By: ETIG Database www.etintelligence.com


MARKET SNAPSHOT TURNOVER Turnover in ` Crore
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 32968.02 10175.05 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 33008.47 10179.20 4/12 3733 2611 13.34 24740 12441 96.17 Advances 123 385 600 1108 621 52WK High 7 56 7 134 73 1/12 20704 21307 -603 2181 2374 -193 27/11 1932 1633 300 5588 6116 -528 Company Price Price Diff Chg(%) Company Price Price Diff Chg(%)
Low 32785.76 10095.70 Declines 214 702 723 1639 1026 52WK Low 3 6 4 54 18 29/11 4859 5482 -622 1607 1479 128 24/11 2685 1888 797 7176 3581 3595 GMR Infrast. 17.25 17.40 0.87 2.37 Biocon 512.75 503.30 -1.84 17.43
Close 32869.72 10127.75 1/12 4430 3066 15.63 28450 15063 101.34 Jaiprak.Asso 17.25 17.40 0.87 3.13 Wipro 289.95 285.55 -1.52 3.17
Unchanged 3 13 133 149 52 All High 6 30 2 68 47 28/11 5114 4330 784 1676 1691 -15 23/11 2283 1747 535 7136 5045 2091 TV18 Broad. 52.80 53.20 0.76 5.25
Change(Abs) 36.78 5.95 Apollo Hosp. 1156.45 1143.30 -1.14 -2.24
30/11 4369 3144 16.32 49597 21104 141.36 Total 340 1100 1456 2896 1699 All Low 3 14 8 27/11 7522 4518 3004 604 697 -93 22/11 2640 1715 925 7556 4852 2704 Indo Count I 115.85 116.70 0.73 2.85
52-Wk High (Nov 7)33865.95 (Nov 6)10490.45 Jain Irrig. 115.80 116.65 0.73 3.64 GAIL (I) 463.15 461.55 -0.35 3.26
52-Wk Low (Dec 26)25753.74 (Dec 26)7893.80 24/11 4565 4457 108 233 458 -225 21/11 2975 2235 740 4854 3391 1463 Suzlon Enrgy 13.85 13.95 0.72 0.18 Britannia 4763.25 4747.35 -0.33 0.02
29/11 4237 3024 15.55 28727 15520 103.14 SAIL 77.70 78.25 0.71 -1.08
3-Yr High (Nov 7,17)33865.95 (Nov 6,17)10490.45 Turnover Cash Market ET Indices Tot Dec 20704 21307 -603 2181 2374 -193 Tot Nov 52554 41886 10669 126442 88968 37474
NHPC 28.40 28.60 0.70 -2.11
Colgate
Indian Oil C
1033.15
390.55
1032.05
390.35
-0.11
-0.05
0.84
1.19
3-Yr Low (Feb 29,16)22494.61 (Feb 29,16)6825.80 28/11 4262 4045 16.79 32660 19666 113.51 BSE NSE (` Crore) PHARMA ET-100 Total 2017 1258588 1202507 56082 358920 211916 147004 Total 2017 507531 400163 108312 1549965 1138511 361431 Dish TV 79.35 79.90 0.69 2.36
Adani Enterp 142.60 143.55 0.67 3.91 Engineers (I 181.85 181.80 -0.03 -3.57
Five Consecutive Days Up Five Consecutive Days Down 51000 16700 12000 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
16350 11850 Company Contract Qty Interest OI (%) Company Contract Qty Interest OI (%)
Elecon Engg. 84.45 83.80 77.90 8.41 Asian Paints 1122.80 1136.09 1169.95 4.03 34000 Monotype (I) 212152 1630 12916.82 5.50 StampCap-DVR 104248 4708 2114.46 3.30
KSB Pumps 874.55 870.50 844.95 3.50 Ramco Cement 692.10 694.50 711.05 2.67 Info Edge 104696 2088 4913.70 1284.15 Jubilant Ind 829364 44031 1783.59 251.15 GMR Infrast. 20.00-Dec 13770000 13140000 30.94 NIFTY 10000.00-Dec 9343125 8053350 1.17
P&G Hygiene 9811.75 9494.90 9243.90 6.14 Arvind 426.95 435.35 445.15 4.09 Bhagya.Propr 40658 976 4064.07 23.50 Fourth Dimen 232000 15400 1406.49 71.30 Suzlon Enrgy 15.00-Dec 11520000 19260000 28.66 NIFTY 10100.00-Dec 8466300 3602400 8.25
16000 11700 GMR Infrast. 17.50-Dec 11115000 6615000 70.93 BANKNIFTY 25000.00-Dec 7369520 765080 17.73
Sadhana Nitr 73.90 71.34 68.00 8.68 DCW 40.15 41.50 43.25 7.17 Dolat Inv. 487765 12036 3952.58 7.25 Bhagy.India 3199340 234542 1264.08 55.60
NIFTY 10300.00-Dec 10850925 3975000 4.61 NIFTY 10200.00-Dec 5806725 3707225 0.48
Ashnoor Tex. 24.40 23.25 20.10 21.39 Exide Inds. 203.75 205.00 207.05 1.59 17000 SH Kelkar 319601 7914 3938.53 260.65 Prakash Cons 7115704 561914 1166.33 5.00 TV18 Broad. 60.00-Dec 10404000 5185000 20.08 DLF 220.00-Dec 5660000 1865000 108.38
Huhtamaki PP 331.20 320.30 301.30 9.92 Panasonic En 352.10 358.10 381.45 7.69 Niyogin Fint 51234 1398 3564.44 29.65 Weizmann For 139635 11511 1113.01 1440.20 Ashok Leylan 130.00-Dec 9793000 4144000 39.29 NIFTY 9900.00-Dec 4300875 1739050 27.07
15650 11550 BANKNIFTY 24800.00-Dec 4013720 293800 90.78
Gillette (I) 6728.75 6552.40 6320.70 6.46 Singer (I) 238.35 241.05 252.00 5.42 Rammaica (I) 75400 2300 3178.26 22.50 Usha Mart.Ed 25300 2180 1060.73 1.85 NIFTY 10400.00-Dec 8945025 4411425 9.44
Ansal Build. 99.80 97.65 88.60 12.64 WPIL 664.60 674.55 698.95 4.91 NIFTY 10500.00-Dec 8616150 6179475 6.86 Ashok Leylan 110.00-Dec 3822000 1372000 26.45
Ramkris.Forg 103577 3192 3144.89 749.85 Kothari Sug. 802946 72754 1003.65 18.40 BANKNIFTY 24900.00-Dec 3608240 250720 89.42
NIFTY 10200.00-Dec 7865850 2634300 10.33
Cimmco 130.44 129.10 116.00 12.45 Cipla 595.25 597.25 610.50 2.50 Sh.Dinesh Mi 66951 2254 2870.57 166.35 Fiem Inds. 87002 8046 981.28 921.50 Ashok Leylan 125.00-Dec 7287000 5243000 40.53 BANKNIFTY 25100.00-Dec 3576640 235520 64.10
0 15300 11400
TT 95432 3240 2845.16 82.05 La Opala RG 526501 49777 957.72 674.75
52 WEEK AT NSE * ALL TIME AT NSE Nov 28 Dec 4 Nov 6 Dec 4 Kotak Mah.Bk 1304517 54472 2294.82 999.90 Ratnamni Met 90192 9465 852.92 949.95 Future OI Gainers Future OI Losers
Univer.Credi 530173 25080 2013.96 9.05 Nitco 4808669 505488 851.29 109.55
HIGH HDFCNiftyETF 1037.90 Huhtamaki PP 339.75 Vikas Ecotec 36.70 Open Chg in Future Chg in Open Chg in Future Chg in
Abbott (I) 5576.00 HDFCSenETF 3429.00 Paramount Co 13.45 Vimta Labs 176.00 Company Interest OI (%) Price Price (%) Company Interest OI (%) Price Price (%)
Agro Phos In 29.95 Hinduja Glob 779.90 P&G Hygiene 9900.00 Weizmann For 1442.10
Positive Breakouts Negative Breakouts Best Returns on BSE Worst Returns on BSE
Biocon 11232000 17.43 503.30 12.16 Hexaware Tec 3141000 7.02 335.55 -1.48
Apex Frozen 818.25 Hi-Tech Gear 463.30 Ramco System 502.00 Zandu Realty 2689.95 Company Days 20 Days % 50 Days Company Days 20 Days % 50 Days Company Days Prices % Average Company Days Prices % Average BANKNIFTY 1791520 12.31 25185.85 -0.29 Union Bank 13008000 5.33 159.60 0.79
Astral Polyt 855.00 IFB Inds. 1500.00 Ramky Infra. 240.25 LOW (BSE) Close Mvg Avg Chg Mvg Avg (BSE) Close Mvg Avg Chg Mvg Avg Close Chg Volume Close Chg Volume Just Dial 2347200 9.27 493.95 -3.53 V-Guard Inds 2808000 4.97 224.75 -0.77
Auto Axles 1598.80 Indrapr.Gas 334.00 Renaiss.Jewl 262.00 5paisa Cap. 186.05 Pidilite Ind 985000 8.60 843.55 -1.43 NIFTYIT 27600 3.66 11097.00 1.17
High Ground 16.12 10.06 60.24 9.94 Steel Exchan 67.60 113.82 40.61 99.35 Fortnight Fortnight TVS Motor Co 5203000 8.17 727.10 0.17 Engineers (I 13237000 3.57 181.80 0.08
Bansal Multi 125.50 Intrasoft Tc 739.00 Ruchi Infra. 5.30 Dynamat.Tech 1995.00
ISMT 19.06 11.99 58.97 11.24 Eastern Gas. 24.60 39.18 37.21 43.23 High Ground 16.12 8.32 93.8 594243 Steel Exchan 67.60 121.10 -44.2 647522 Syndicate Bn 19449000 6.82 87.40 -0.51 Cummins (I) 738000 3.53 860.60 1.73
Bhagy.India 56.25 ISMT 19.05 Samtel Color 0.80 FCS Software 0.05 Madras Fert. 44.45 28.26 57.29 26.17 Kotak Mah.Bk 8012000 6.59 1003.00 -0.77 Tata Steel 24402000 3.52 690.15 1.19
ECS Biztech 16.25 22.83 28.82 20.93 Mehai Techn. 70.00 37.00 89.2 20455 Eastern Gas. 24.60 40.75 -39.6 6452
Bil Energy S 1.20 IL&FS Invt.M 32.10 Setco Automt 48.80 Gallantt Met 33.45 Nagreeka Cap 50.45 32.39 55.76 23.64 Ushdev Intl. 2.53 3.39 25.37 3.17 KPIT Techno 11380000 6.12 158.90 -1.61 Nestle (I) 150600 3.34 7713.90 0.02
Shankara Bld 2248.00 Sankhya Info 96.45 56.10 71.9 196263 Ushdev Intl. 2.53 4.16 -39.2 107550 Indian Bank 4522000 6.05 386.25 -1.62 Container Co 1235625 3.23 1298.95 1.19
Biocon 519.50 Jamna Auto 68.25 Gallant Ispt 183.35 Digjam 21.95 14.61 50.24 12.69 Pincon Life 20.45 27.40 25.36 32.60
Birla Cable 72.40 Kothari Sug. 19.10 Shrenik 369.85 Glenmark Pha 540.00 Nagreeka Cap 50.45 29.75 69.6 8623 Patspin (I) 28.40 41.30 -31.2 27374 Rel.Naval En 14049000 5.76 35.70 -8.58 Tata Power 47025000 2.86 90.35 -0.44
Urja Global 4.06 2.71 49.82 1.82 Provestment 19.00 24.86 23.57 26.67 Zandu Realty 2524.85 1498.65 68.5 29363 VB Inds. 163.15 226.85 -28.1 249247
Capacite Inf 437.45 La Opala RG 717.20 SIL Invt. 502.55 Golden Tobac 46.00 Zandu Realty 2524.85 1704.69 48.11 1457.79 Rel.Naval En 35.50 44.84 20.83 49.51
Carborundum 395.80 LT Tech Serv 1128.00 Siyaram Silk 700.00 Innovat.Tyre 35.65 Sankhya Info 96.45 65.31 47.68 53.65 GRM Overseas 229.20 288.14 20.46 279.36
1 Month 1 Month Market-Wide Position Limit Top Sectoral OI Gainers
Cera Sanitar 3864.00 Lumax Ind 2075.00 SORIL Holdin 248.85 IRB InvIT Fn 89.10 Nu Tek 2.06 0.80 157.5 637308 Pincon Life 20.45 43.10 -52.6 106182
Apex Frozen 816.55 560.64 45.65 457.35 Patspin (I) 28.40 35.28 19.50 29.35 MWPL OI MWP Chg in Open Chg in Trd Chg in
Cimmco 138.50 Madras Fert. 45.10 Sun Ph.ARC 463.70 Lupin 809.05 Nagreeka Cap 50.45 20.00 152.3 14596 Eastern Gas. 24.60 47.00 -47.7 6147
Bhagy.India 55.35 38.17 45.01 34.30 Super Crop. 128.90 160.12 19.50 138.63 Company (Lakh) (Lakh) (%) OI (%) Sector Interest OI (%) Qty TQ (%)
Digjam 22.75 Mask Invest. 27.55 Sterl.Tools 424.00 New(I) Assu. 600.15 IL&FS Invt.M 31.05 21.67 43.29 17.88 Urja Global 4.06 1.69 140.2 3065691 TV Vision 20.70 39.15 -47.1 315501
STC India 173.40 213.46 18.77 190.92 Jain Irrig. 710.16 611.19 86.06 4.72 Consultancy 2362600 9.28 5076600 110.09
Dhanuka Real 44.00 Madhya Bhara 79.80 Summit Secur 893.95 PTC Fin.Serv 35.60 Eurolead.Fas 27.55 19.25 43.12 18.78 Neuland Lab. 912.85 1120.69 18.55 1104.55 SORIL Holdin 240.25 105.20 128.4 484975 Sri Adhikari 16.30 29.55 -44.8 393483
Dewan H.Fin. 381.00 327.75 86.02 2.20 Entertainment 120387400 4.14 51087300 -44.18
Everest Kant 59.00 MM Forgings 949.00 Sundaram Fin 1929.85 Pulz Electrn 54.00 Shaily Engg. 998.00 710.96 40.37 647.33 Alexander St 25.75 31.34 17.84 31.42 Californ.Sof 73.95 34.50 114.4 13840 Vardhman Ind 12.45 22.00 -43.4 51629 JSW Energy 820.31 696.15 84.86 1.12 Casting & Forging 6944400 3.90 2635200 28.65
Elecon Engg. 88.80 Morepen Lab 28.65 Super Spin. 24.60 Rel.Naval En 35.05 Uday Jewel 38.40 27.37 40.30 22.93 Facor Alloys 3.69 4.46 17.26 4.65 3 Months 3 Months Fortis Healt 679.88 541.51 79.65 -0.35 Plastic Products 51768000 3.77 19215000 -51.37
Eveready Ind 454.00 Nagreeka Cap 51.45 Surevin BPO 73.45 Silver T Tec 119.90 Seya Inds. 759.05 547.03 38.76 482.33 New Delhi TV 44.00 52.88 16.79 58.27 Californ.Sof 73.95 7.93 832.5 17719 Sri Adhikari 16.30 166.80 -90.2 179235 HDIL 551.31 428.43 77.71 8.38 Pesticides 12055200 3.56 3756000 -3.54
Fineotex Chm 47.45 Nitco 111.45 Techindia Ni 15.25 SML ISUZU 879.00 Paramount Co 12.39 8.93 38.75 7.36 SORIL Holdin 240.25 33.50 617.2 345475 TV Vision 20.70 167.55 -87.7 129106 TV18 Broad. 1357.68 1022.55 75.32 6.82 Real Estate 79221000 3.17 63531000 -1.10
TV Vision 20.70 24.60 15.85 59.29 GMR Infrast. 4628.79 3428.10 74.06 5.24 Paints & Varnishes 4565800 3.05 1788000 -3.11
Tirupati Frg 66.70 NR Agarwal 426.75 TTK Prestige 7050.00 Steel Exchan 67.60 Cont.Petro 44.00 31.75 38.58 28.99 SRS Real Inf 8.40 9.92 15.32 9.60 Urja Global 4.06 0.89 356.2 1676823 SAB Events 12.65 40.00 -68.4 16551 India Cement 438.99 319.06 72.68 0.51 Telecom Equip. 9824300 3.01 2601000 -32.24
Gillette (I) 6699.00 Nu Tek 1.80 Urja Global 3.60 Thyrocare Tc 643.00 Almondz Glob 38.00 27.52 38.08 26.53 GTN Textiles 23.15 27.07 14.48 24.20 KIOCL Ltd. 408.85 109.70 272.7 25152 Sunstar Real 16.40 42.65 -61.6 513588 Granules (I) 263.02 190.55 72.45 0.58 Granites & Ceramics 1636000 2.92 651200 44.33
GlaxoSmith.C 6194.15 Panama Petro 229.80 Vertoz Advtg 153.00 Vaishali Ph 48.75 Shankara Bld 2204.70 1603.53 37.49 1517.82 Ferro Alloys 14.65 17.11 14.38 17.34 MIRC Electr. 50.75 14.05 261.2 1019548 Omansh Entp. 2.47 6.29 -60.7 19087 Jaiprak.Asso 2957.67 2132.48 72.10 5.38 Shipping 24950500 2.73 15279000 29.89
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.
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Money Matters  11

You Cannot be Successful by Off The Beat

Betting with the Consensus Look Beyond Law


XX From ET Markets Page 1

Another characteristic of this econo-


MARKET CONCERNS
I do not see a
to Guard Reputation
of final liability of NSEL is yet to LEARN TO MOVE ON
my is that the technology that is im-
proving profitability is also having the
financial crisis be legally decided, and FT is The terms corporation and
bound to explore other legal op- limited liability owe their ori-
effect of displacing workers or chang- like in 2008 tions, such as moving the gin to a demand by Franciscan
ing the employment situation which Supreme Court. monks of 12th century who
also widens the wealth gap and is call- but I do think that we But where does this leave Shah? looked for ways to hold monastic
ing attention to the two-part econo- are going to have a dif- In the three-year-long court feud,
did it cross his mind that in the
property without violating their
vow of poverty. In the turbulent
my. It is very good for profits and
very good for productivity in general, ferent set of difficulties SUGATA GHOSH maze of corporate law, he could world of business, they were
risk his future? That the very wall fine-tuned to attract investors,
but it is affecting workers. I think we
are probably in the vicinity of having
over the next 3 years of limited liability that ring-fenc- who were assured that the down-
Lawyers can get you bail and help es FT from NSELs losses and lia- side, even in risky ventures,
between 2.5% and 3% growth rate. that are going to increasingly squeeze you stay out of jail, perhaps for- bilities could also hold him back would be limited to amounts
But we are coming into the latter us; pension obligations and healthcare ever; save you from a riotous mob, as a businessman; that while pro- they were willing to bet. But are
part of the cycle, so the next five or dig a moat to keep away nasty tecting the interest of FT share- they etched in stone? The court
obligations which cannot be met fully rivals. What they cant is preserve holders which include him, will have the last word.
years growth rate is probably going and if we have an economic down- your reputation when it is sullied and his family members and as- Till then, managers and pro-
to be less than that. turn, that is going to cause more ten- by forces that are beyond law. sociates he could miss the moters can catch the bigger pic-
sion, more conflict between these Jignesh Shah banked on an chance to regain his credibility ture. Corporate India is replete
What about India? populations. army of legal eagles and and standing that has been shak- with frauds perpetrated by
I am very impressed and very opti- I do not see a financial crisis like in would probably continue to in en after the scam. rogue CEOs who indulged in
mistic about India and the reason I say the days to come while trying
2008 but I do think that we are going to shield his business from the
this is because we have created 10- to have a different set of difficulties dust and heat of the `5,600 crore
year growth estimates and formulas over the next three years. fraud that left thousands of in-

FILE PHOTO
for estimating what 10-year growth vestors fuming. These com-
numbers are around the world and we How do you view the Feds policy prised wealthy professionals
do that by looking at a number of indi- stance into 2018 under the new and businessmen as well as hap-
cators. Some of the most important less pensioners and widows who
chairman Jerome Powell?
down, the bureaucracy being reduced neur, one has to be an independent had traded on the National
indicators are what is the cost per There is an awareness and caution Stock Exchange Ltd (or NSEL),
hour of an educated person and how and as a result we are projecting India thinker who bets against the consen- about these sort of things. I have had an outfit owned by Shahs flag-
does that compare with that which ex- as having the highest economic sus and is right because the consensus conversations with other central s h i p c o m p a n y, F i n a n c i a l
ists now. In the countries that have the growth rate in the world which would is built into the price. You cannot be bankers and there is a caution and a Technologies (FT).

ANIRBAN BORA
most educated people, the cost per be in the vicinity of 6.5% or may be successful in the markets if you are realisation. At the same time, there is
hour tends to grow faster than those slightly higher over the next 10 years. betting with the consensus. You have LEGAL REMEDY
this tension, this difficulty that as in-
If I look at that and I look at the re- to find out when the consensus is Over the past few years, a formi-
that have fewer educated workers. flation pressures and operating rates dable team of lawyers argued
The second big factor is the level of gion and that is increasingly going wrong and when you are doing that, rise, a sense of running into that part that toxic wastes of NSEL could
indebtedness and when countries to be epicentre of growth. So I think there is a high probability that you of the cycle will be difficult. It will be not boil over to the parent FT as kite flying after winning the
have a high level of indebtedness, when looking at the world economy also could be wrong. How do you an increasingly delicate balance and the company and its sharehold- IRREPARABLE DAMAGE? trust of the promoters and par-
they grow at slower rates in the future
because they have those burdens.
we need to put these various econ-
omies in perspective and we will be
know that you are right and every-
body else is wrong? So, one needs to
by and large, there is a realisation of ers are protected by limited lia-
bility one of the cornerstones While shielding his ent. More than a decade ago
when one of the largest busi-
that and that produce of a certain
The third factor is a culture and in less US-economy-centric in the be comfortable doing that first of all amount of caution, but it does not
of capitalism. According to them,
this bedrock of corporate law
business from the ness groups in India sensed the
rot in its finance arm, it assured
years ahead. and one needs to have these inde-
particular the cultural influences on
efficiency. Do you have a bureaucra- pendent thinkers who will then de-
change the fact that balance will be-
come increasingly difficult.
that allowed risk-taking in busi-
ness was an infallible logic. They
`5,600-crore NSEL depositors that their money was
safe; to quell the panic its offices
cy, do you have a culture in which
there is work hour? All of that and
How do you reflect on your decision
making ability following your princi-
bate each other in order to raise the
probabilities of being right and then Will the bloated PE multiples see a
relied on it to legally challenge
the governments order to merge
fraud, Jignesh Shah were kept open well into dusk to
pay back investors.
very interestingly, in all of that, India ples when you called the 2008 credit
crisis?
one still needs to manage the risks of
that bet of being right. So that is a
timely correction?
NSEL into FT, which was subse-
quently renamed 63moons.
may have missed Even though not strictly com-
parable, Shah and his team
has relatively low debt rates and rela- When asset prices go up, a lot of that
tively attractive population of intelli- In order to be successful in the mar- very big thing. price rise is equivalent of pulling fu-
In advocating the proposed
merger, the counsel for the gov-
the chance to could have marshalled the
groups resources to settle the
We ran our calculations and we do
gent people economically at lower
cost. It is very cost effective.
kets or be successful as an entrepre-
not care what the rest of the world
ture returns to the present because as
interest rates go down and those pre-
er nment steadfastly main-
tained that FT and NSEL were
regain credibility dues with NSEL investors and
move on. With FTs dominant
INDIAS EDGE thinks. You know, one of the big prob- sent values go up. It means that the inseparable, with the parent Shahs mistake was to depend position as a provider of tech-
And what are the challenges? lems of the investing world is that holding more than 99% equity on law in fighting a battle of per- nology solutions in financial
The biggest challenges, though it still India has there is a such a consensus that eve-
future returns are going to be lower
and that will have a big effect on pro-
of the subsidiary and having ception. Even if one gives him the markets, the company would
common directors. benefit of the doubt that he and have regained its losses. They
has great potential, have been the bu- relatively low rybody believes something to be true. ducing the squeeze that I am talking On Monday, with the Bombay FT management were unaware could have built on FTs market
reaucracy, the absence of all openness When everybody believes some- about. So yes the multiples are high
to foreign investment, the lack of flex- debt rates and thing to be true in the markets it is but that does not make it risky if the
High Court quashing FTs peti-
tion contesting the merger pro-
of the dirty dealings by the cow-
boys of NSEL Shah should
share, the groups multiple trad-
ing exchanges, and other data
ibility about how long it takes to set relatively attractive priced into the markets and so you
have to think independently to be ef-
interest rates do not rise faster than posal, the concept of limited lia-
bility appeared like fig leaf. Will
have persuaded the FT board and
its shareholders in compensating
businesses to put NSEL behind.
But in disregarding the reputa-
up a business, the openness of the discounted and if liquidity is there, it
capital markets, corruption index. We population of intelligent fective. As we progress over the next has to get into investments.
FT have to open its coffers to pay the investors. By choosing to stay tional damage it could inflict
three-year period, there is going to be off NSELs investors? Despite behind the veneer of limited lia- and creating an armour around
have seen a lot of that changing in-
cluding the openness to foreign in-
people economically a greater financial squeeze due to the For full interview, log on to
Mondays court ruling, there is bility, he has perhaps lost more the cash cow FT, they risked los-
no obvious answer. The question than he tried to salvage. ing much more.
vestments, the corruption index being at lower cost fact that we have these obligations www.economictimes.com

CHECKING INFLOWS Fund house will allow an SIP only on the 10th of
every month in its flagship midcap scheme Emerging Bluechip Fund

Mirae Restricts Flows into Key


Fund to Protect Performance but continued to accept SIPs and STPs, cap- houses are finding it tough to identify invest-
Prashant.Mahesh@timesgroup.com ping them at `25,000. Despite the restric- ment opportunities.
tions, the assets under management (AUM) Many small- and mid-cap-oriented funds
Mumbai: Mirae Asset Mutual Fund has de- surged from `2,942 crore in November 2016 have already put restrictions on lump-sum
cided to further restrict inflows into its flag- to `5,000 crore in November 2017. Over the inflows into their schemes. DSP Blackrock
ship midcap scheme Emerging Bluechip last three years, the AUM has surged 10-fold Microcap, IDFC Focused Equity, SBI Small
Fund. Starting December 15, the fund house from `500 crore in September 2014. and Midcap, and L&T Emerging Business
will offer systematic investment plan (SIP) Mirae Asset Emerging Bluechip has been are some schemes that have restricted lump-
on only one day, the 10th of every month. one of the best performing funds in the mid- sum investments in the recent past.
In the last one year, the monthly SIP/STP cap space, having returned 38.41% against Post-demonetisation, investors have been
flows have increased from `38 crore to `168 the 33.72% appreciation for the relevant pouring money into equity mutual fund
crore. Hence, to further consolidate inflows benchmark. schemes. Equity-oriented mutual fund
and not impact the fund performance, we Quarterly earnings in September have schemes have mopped up `1.51 lakh crore in
have decided to limit SIP inflows up to a been tepid for mid- and small-cap companies the first seven months of the current finan-
maximum of `25,000 applicable per person with market capitalisation below `5,000 cial year. Demonetisation has accelerated
for one SIP date on 10th of every month, crore. Given the concerns over earnings, the shift from physical savings to financial
says Swarup Mohanty, CEO, Mirae Asset stretched valuations, and limited opportuni- savings, and AUM of the industry rose to
Mutual Fund. ties, funds are cautious about inflows, says `21.41 lakh crore in October 2017, from `16.5
In October 2016, Mirae had stopped accept- Vidya Bala, head of research, Fundsindia. lakh crore in November 2016, translating
ing lump-sum investments into this scheme, com. Given the surge in valuations, fund into a rise of 29%.

Bitcoin is Now Bigger Than Buffett,


Boeing and New Zealand
Bitcoins New Zealands GDP Bitcoin on the Boeing
extraordinary The South Pacic Digital Currencys market cap It may make jumbo jets but
price surge nations farm-and- leaves countries trailing GDP ($B) Boeing Cos market cap of $162
means its market tourism-led economy Algeria billion is also less than that of a
capitalisation now is valued at $185 Iraq digital currency that didnt exist
exceeds the annual billion, according to New Zealand 10 years ago. The Chicago-based
output of whole World Bank data as of company, which describes itself as
Romania
economies, and the July, putting it some $5 the worlds largest aerospace rm,
estimated worth of billion below bitcoin. Bitcoin is more than a century old and
some of the worlds The cryptocurrencys Peru employs 140,000 people in more
top billionaires. market cap is also Czech Rep than 65 countries, according to its
With the debate bigger than the likes Greece website. Rival Airbus SE fares no
over its bubble of Qatar, Kuwait and better its got a market value of
Vietnam
status still raging, Hungary. 66 billion euros ($78 billion).
20 60 100 140 180 220
the agship
cryptocurrency Bigger Than Boeing
continued its march Goldman Sachs, and UBS Bitcoin is now worth more than
higher on Monday, some of the worlds biggest cos
solidifying above Bitcoins run-up has even Both nancial heavyweights
seen it valued more highly have taken a hands-off approach Verizon
$11,000 and bringing
than two of the worlds most to the digital currency, with Toyota
its climb this year to
more than 1,000%. inuential banks. Goldman Goldman CEO Lloyd Blankfein Coca-Cola
Sachs Group Inc.s market cap saying its too early to draft a
With market tracker Bitcoin
Coinmarketcap.com was $97 billion as of Friday, bitcoin strategy and UBS the
while Zurich-based UBS Group worlds biggest wealth manager PepsiCo
putting the total
value of all Bitcoins AG came in at about $67 billion. saying it wont allocate it in Boeing
in circulation at Add those numbers together portfolios because of the threat McDonalds
$190 billion, its and it still falls short of Bitcoin. of a government crackdown. Market ($B) 20 60 100 140 180 220
come a long way
from August, when Bill Gates, Buffett and the Queen
one coin could buy
They sit atop Bloombergs Billionaires Index, but
you a hefty supply
even if Bill Gates and Warren Buffett pooled their
of avocados.
fortunes they wouldnt have enough to buy all the
Here are four
bitcoins in circulation. Gates is worth $90 billion and
things that have
Buffett has $83 billion, according to the index. Not
been eclipsed
even Queen Elizabeth II could get them over the line
by Bitcoin in
if she brought her $383 million to the table. While
terms of market
we dont know what he told Katy Perry, Buffett has
capitalisation:
called bitcoin a real bubble in the past.
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12  Finance & Commodities THE ECONOMIC TIMES | NEW DELHI / GURGAON | TUESDAY | 5 DECEMBER 2017

LEARNING FROM PAST Bankers, still smarting under the arrest of their peers in the Kingfisher
case and prospect of unscrupulous promoters getting assets at a discount, are turning cautious Capital Needs Coffee
`500 crore Amount co Exports Rise
Banks Set Norms to Select looks to raise in latest round
`1,030 crore Amount
raised by co in last round
INVESTORS IN LAST ROUND
8% in Jan-Nov
Coffee exports from
India, Asias third-

Bidders for Troubled Assets the arrest of their peers in the


73*
1+3($
45*
(QWHUSULVHV
0RUJDQ6WDQ-
9DOODEK
%KDQVDOL
7UHHOLQH
largest producer and
exporter, rose by 8.08%
in January-November
2017, according to the
Coffee Board.
Tweet of the Day After weeks of Time to Be Extra Cautious
Kingfisher Airlines case and the
OH\$VLDPDQ-
DJHG3(IXQG
bogey created by the prospect of
deliberations, banks Banks evolved evaluation criteria for unscrupulous promoters getting
Nouriel Roubini potential bidders for troubled assets their asset at a steep discount, are
Janalakshmi Fin
@Nouriel evolved a set of CRITERIA INCLUDE
turning cautious. Although the In-

What will be the political evaluation criteria Ability to bring in equity


ALTHOUGH solvency and Bankruptcy Code
provides protection from the gum-
to Raise . 500 cr
IBC PRO-
consequences of the US Sangita.Mehta@timesgroup.com
funding VIDES PRO- boots, bankers do not want to take
any risk. Banks have also prepared
Before Launching
budget deficit rising above Future potential to borrow TECTION,
the symbolic figure of $1 Previous track record of
BANKERS a set of subjective criterion to eval- Small Fin Bank
Mumbai: Banks, stung by fear of DO NOT uate the bidder which includes the
turning around projects
trillion by 2019 thanks to investigative agencies disrupting WANT TO applicants background.
their lives even if they follow the Amount of sustainable debt Ten days ago, the Act was amend- Shilpy.Sinha
reckless tax cuts? The Reps TAKE ANY
@timesgroup.com
bankruptcy process, have evolved Duration of repayment RISK ed to bar wilful defaulters from par-
will use it as an excuse to a common set of evaluation crite- schedule ticipating in the resolution proc-
starve the beast & slash ria to short list potential buyers to ess, while other defaulters can par- Mumbai: Janalakshmi Finan-
entitlements even if their be admitted in the bidding for as- ticipate only if they regularise cial Services, which has recei- Coffee Exports
sets put on the block under the In- identified. The other criterion short- est pos- their loans before bidding. As ved a licence for setting up a
tax cuts starved the gov of solvency and Bankruptcy Code, that could go in favour of bidders sible time and with the things stand, all lenders are unani- small finance bank, is looking
revenues said two people familiar with the are: higher amount of sustainable least amount of haircut, said a mous that the highest bidder will to raise about `. 500 crore in its 3.61 3.34
developments. debt, shorter duration of the re- banker at a state-run bank who have priority over others. If that is second fundraising in less than LAKH
TONNES LAKH
The ability of the bidders to payment schedule, equity upside did not want to be identified. not possible and he says part debt six months as it battles record TONNES
Quarts & Ounces bring in equity funding, future po-
tential to borrow, past track re-
for the lenders, allotment of re- With these objectives in mind, and part restructure, there will be bad loans.
The microfinance company is
deemable instruments to lenders who so ever gives me a cheque tenure based discount. If lenders
cord of turning around projects and the optional cash flows at the with a single amount I am happy have to make sacrifice, then we will set to raise $75-100 million in
Wheat-Sharbati - MUMBAI are among the criteria evolved af- disposal of the bidder. with it because it will help me get see what equity is given to us and another round of funds before
(Quintal) ter weeks of deliberations, said As a bank I am interested in get- rid of the non-performing loans. what is the bidders track record, it launches the small finance
the people who did not want to be ting most of my money back in the Bankers, who were haunted by said another bank official. bank, people aware of the mat-
2650 ter told ET on condition of ano- Jan-Nov 2017 Jan-Nov 2016
nymity. They said this round of
2600

REC, IRFC may


Gold Demand Picks up
funding will enable the trans-
2550
ition to a small finance bank as 2,11,442 tonnes
the company will need to main- Robusta coffee exports
2500 Raise $600m via tain higher liquidity levels to
comply with cash reserve ratio
during Jan-Nov 2017 (up
10.8% yoy)
Dollar Bonds
in Cities as Price Falls and statutory liquidity ratio re-
2450
quirements.
2400
The company did not respond
05-12-2016 04-12-2017 Joel.Rebello@timesgroup.com to a query emailed by ET. 44,084 tonnes
The company had raised new Arabica coffee exports
Mumbai: Public-sector financiers FROM EQUITY TO GOLD Analysts say people who made profit in equity capital of `. 1,030 crore, during Jan-Nov 2017
Index Rural Electrification Corp (REC)
and Indian Railway Finance Corp stocks are investing in gold, finding current price level attractive
with investors such as global
private investment firm TPG (down 10.81% yoy)
COMMODITIES (2003=1000) (IRFC) could raise at least $600 mil- leading the round.
lion by selling dollar bonds to inves- Other investors included
Sutanuka.Ghosal@timesgroup.com 47,734 tonnes
Bullion -33.8
Urban Push for
CHANGE tors in Asia and Europe in the next10 Morgan Stanley Asia managed
DAYS INDEX PREV DAYS LAST WEEK
days, three people familiar with the PE fund NHPEA, Treeline, Outbound shipment of
Gold Market
initiatives told ET. Kolkata: Demand for gold has picked up in met- QRG Enterprises and Vallabh
4621.8 4655.6 4773.3
REC is kicking off roadshows to ro cities and state capitals of India as prices Bhansali. Bajaj Allianz Life In- instant coffee during Jan-
sell the issue to investors in Singapo- slipped nearly 2% in the last 10 days, bullion trad- surance Company and Bajaj Nov 2017 (up 86% yoy)
0.00 Higher gold demand in metro
Cement CHANGE re, Hong Kong and London on Wed-
cities and state capitals
ers and dealers said. Allianz General Insurance
DAYS INDEX PREV DAYS LAST WEEK nesday, while IRFC completed its ro- They said the discount on gold has come down Company also picked up a
2014.8 2014.8 2014.8 adshows last week and is expected to due to lower prices to $1 per troy ounce from $4-$5 in mid-November, small stake in the company. MAJOR EXPORT
put the bonds for sale later this week, indicating a pick up in demand. On Monday, gold Janalakshmi Financial Ser- DESTINATIONS
Foodgrains CHANGE -3.5 one of the people cited above said. In
June, REC had raised $450 million by
2% Discount
on Gold Now
was hovering in the range of `. 29,100 per 10 gm in
Mumbais Zaveri Bazar.
vices had a total requirement
of `. 1,500 crore to start small fi- z Italy - 73,705 tonnes
DAYS INDEX PREV DAYS LAST WEEK Decline in
2207.0 2210.5 2206.4
selling green dollar bonds at 3.88%,
while IRFC had last
prices in 1
$ per
The demand is picking up in metro cities and
state capitals. But the demand from tier 2 and
nance bank operations, said
one of the persons, who did not z Germany - 38,671 tonnes
last 10 days troy ounce
raised dollar funds tier 3 cities is yet to pick up. Once the GST issue wish to be identified.
0.00
z Russia - 26,319 tonnes
Edible Oil CHANGE in February 2014. settles down, demand from these areas will also It is looking to raise the rest
DAYS INDEX PREV DAYS LAST WEEK REC is raising the Mid - Nov emerge, Nitin Khandelwal, chairman at All In- of the amount before finally
1648.6 1648.6 1645.8 money to refinance dia Gems & Jewellery Trade converting into a small finance
its foreign loans ma-
turing early next ye-
$4-5 per Discount on
Federation (GJF), told ET.
Traders say people who have
bank. Source: PTI

Moody's troy ounce


DID YOU KNOW? assigned a ar, while IRFCs gold has come booked profit in the stock mar-

Tapping Potential
bonds will have the down to $1 per ket are investing a portion of it
Women are Baa3 rating
to RECs green bond tag be-
29,100
` per 10 gm
troy ounce in gold as they are finding the
bonds, just a cause the funds will current price level attractive.
Becoming 401(k) notch below be used to buy electri- Gold price in Mumbais
from $4-$5 in
mid-November The confidence in the market
Zaveri Bazar on Monday
Millionaires Early Indias Baa2 fied coaches conside-
rating red environment-fri-
is gradually recovering, said
Shekhar Bhandari, business head for global From Page 1
Semiconductor (one), Singapore-
based Dynamic Technology Lab
Usually when you endly. People who gained from stocks are transaction (banking and precious metals) at IIT Roorkee got 13 international (five), RV Capital Management
hear the words re- Both companies have to raise the investing in gold, finding the current Kotak Mahindra Bank. People who have book- offers in the first three days, (two) and CBS Techno (two). At
tirement and money in the next 10 days because af- ed profits from the equity markets are looking at compared with seven last year. IIT Bombay, 11 international of-
ter that the Christmas holiday sea-
price level attractive gold as an area of investment. The current price The institute has already sur- fers came from Murata and Sys-
women in the
same sentence, the news is son begins in Europe, and there are level is attractive for investment if investors passed last years total tally of 12. mex of Japan. NEC Japan was
very few trades, said a banker awa- People who have booked profits take a long position. Students at IIT Kanpur have got another aggressive recruiter.
grim. But finally, theres some re of the deals. REC is likely to raise Though demand is showing recovery, Indias around 20 overseas offers alrea- Part of the reason Japanese
positive news: The number of $300 million through a three-year from the equity markets are look- gold consumption is likely to fall to its lowest in dy, which is at least 50% more companies are leading the char-
women whove reached the $1 bond sale as part of its $1-billion, me- ing at gold as an area of invest- eight years in 2017. Gold demand had fallen 24% than the same time last year, said ge may have something to do
million-plus mark in their dium-term-note programme. Ra- ment. The current price level is from a year ago to 145.9 tonnes in the quarter to a placement team member. At IIT with the need to look overseas for
401(k) accounts has doubled ting agency Moodys has assigned a September. Analysts said GST and anti-money Bombay, international offers young talent in light of its ageing
Baa3 rating to RECs bonds, just a
attractive for investment if in- laundering legislation around retail jewellery (from day one to three), inclu-
over the past 12 years, accord- population, surmised one of the
ing to Fidelity figures. Women notch below Indias Baa2 rating. vestors take a long position transactions deterred buyers in the quarter. ding pre-placement offers, have IIT placement officials.
actually reach the milestone The rating takes into considera- SHEKHAR BHANDARI The anti-money laundering legislation was gone up to 60 from 50. IIT Madras already has nine Ja-
faster than men do, at an aver- tion our assessment of the strong Kotak Mahindra Bank withdrawn in September end. Gold prices fell in According to placement sour- panese offers compared with
link between REC and the Govern- Asian trade on Monday as the dollar gained on ces at these IITs, the surge in in- about three last year, said Manu
age age of 58 versus 59.3.
Women being more risk averse
ment of India. The standalone on expectations that the US economy will expand ternational offers has been fuel- Santhanam, advisor, training
strength of REC is supported by its after the Senate passed a bill to overhaul the tax
than men didnt ring true in the operating track record and its status
The Hiccups system. Spot gold was down 0.6% at $1,272.91 an
led largely by Asian companies
aggressively hiring tech talent.
and placement at the institute.
Asian companies are in aggres-
research. Among Fidelitys as the preferred lender to state-run ounce after touching a high of $1,289.50 on Fri- At IIT Roorkee, for instance, the sive hiring mode, said Debasis
401(k) millionaires who earn power utilities, its captive franchise
GST and anti-money laundering legis- day. US gold futures were down 0.5% at $1,275.80 three US offers are all from Mi- Deb, chairman of the career de-
less than $150,000, women in the financing of rural electrifica- lation around retail jewellery trans- an ounce. If gold breaks $1,265 level, it may go crosoft for jobs at Redmond. In velopment centre at IIT Kharag-
hold about 77% of their nest tion projects, as well as power trans- down to $1,220. In rupee terms, prices may mod- comparison, Japanese peer-to- pur. Mercari was a first-timer on
mission, distribution and genera-
actions deterred buyers during the erate to `. 28,800 per 10 gm this month, said Mu- peer marketplace app operator the Kharagpur campus while Ta-
egg in stocks.
Business Insider tion, Moodys said. quarter, said analysts kesh Kothari, director at RiddiSiddhi Bullion. Mercari has made nine offers for iwan Semiconductor made four
jobs in that country, while first- offers. Japanese tech company
timer Webstaff has made one, ta- Konica Minolta came on second

Booster for Tiger Global


king the tally to 10. day while LG opened up profiles
IITs are the hub for technology in South Korea for the first time,
talent for global companies. making three offers.
Now, more and more countries, Placement sources said stu-
has been the largest financial in- the past six months buying ventu- tic pace of investments and reposi- ys useful, Sandeep Murthy, part- led by the likes of Japan, are rea- dents are keen on Asian compa-
From Page 1 vestor in the Indian internet sector re-backed companies like travel tioned portfolios, amid growing ner, Lightbox, told ET. lising the potential of IIT stu- nies. Quite a few offers have co-
A significant portion of the exits pouring in $2 billion over a decade, firm Via, from which Kalaari and pressure from limited partners. The IPO market for startups, ho- dents, said NP Padhy, IIT Roor- me from companies in Japan and
recorded in 2017 has been driven by to nearly $1.5 billion. Led by noted Sequoia Capital have exited. Its been a very positive period in wever, continues to be limited. In kee professor-in-charge of trai- Singapore other than the US re-
secondary transactions, with Ja- money manager Lee Fixel, Tiger This bumper har- terms of exits. But it needs to be September, Matrimony.com, ning and placement. cruiters, said one placement of-
pans SoftBank and Chinas Aliba- Global is expected to earn about vest which is also sustained in the long run, particu- which owns and operates marriage IIT Kanpur students have got ficial. Despite salaries being lo-
ba Group leading the pack of global three times its investment in Flip- significantly higher larly more M&As and IPOs, said services portal BharatMatrimony- eight US offers four from Mi- wer in rupee terms, students are
investors looking to ramp up their kart and about five times the mo- than the $1.80 billion Mohan Kumar, executive director, .com, raised Rs 130 crore in prima- crosoft, three from cloud data ma- keen to join since those are good
exposure to Asias third-largest ney it put into Ola, according to in- recorded from exits Norwest Venture Partners. ry capital from its public market nagement company Rubrik and avenues to explore and grow and
economy. dustry analysts. in 2016 and $1.69 bil- The healthy returns come at an debut, which also saw some of its one from Uber. Asia accounts for (such locations) also have a lo-
SoftBank, for instance, has alrea- Additionally, the sale of venture- lion two years ago, opportune time for risk capital in- existing shareholders selling their more than 10, including Taiwan wer cost of living than US.
Share sales
dy shelled out about $1.4 billion in backed assets to strategic investors in Flipkart
according to data vestors as once again in 2017, fresh stake in the company.
secondary transactions, according has contributed more than $500 and Ola is collated by Venture investment continues to fall. While Industry insiders do not expect
to industry estimates, picking up
stakes from the early backers of
million to the overall exits recor-
ded in this calendar year. The entry
expected to Intelligence could
finally boost senti-
investments peaked in 2015 with
548 deals worth $2.1 billion, they
that to change anytime soon, as
public market investors want pre-
Monthly Border Compliance
take total
Flipkart and One97 which owns
and operates the Paytm brand. The
of US-based multinationals, such
as Ebix Inc, has widened the pool of
realisations ment for investors
who have pumped in
fell to 477 deals worth $1.59 billion
in 2016 and 306 investments worth
dictable cash flows and stability.
If youre getting access to long-
Turnover Details Takes 267 Hours
for Tiger
Japanese investor is also in the pro- buyers looking to pick up assets in Global to billions of dollars in $1.1billion for the first 11months of term capital, like SoftBank can From Page 1
cess of picking up a stake in ride- the country. nearly the countrys star- The department is providing From Page 1
2017, according to data from Ventu- provide, the companies may want
hailing company Ola from Tiger The Nasdaq-listed, Atlanta, Geor- $1.5 billion tup ecosystem, over re Intelligence. to stay private for another, say, five data to field officials based on Prime Minister Narendra Modi
Global Management. gia-headquartered company, the last decade, but If youre talking about liquidity, yearsThe startups know that if GSTR 3B filings by the big as- wants India to break into the top
The share sales in Flipkart and which has a market capitalisation had little to show in terms of re- then yes, its always a good thing. they went public, they wont get sessees to help them make 50.
Ola is expected to take the total rea- of $2.34 billion, is estimated to have turns, so far. Since mid-2015 many That there are now different chan- this sort of valuation, Screwvala comparisons with the pre- In India, border compliance ta-
lisations for Tiger Global, which spent more than $250 million over venture firms paused their frene- nels of liquidity emerging, is alwa- said. GST regime. Each commissio- kes 267 hours (more than 11 days)
nerate has to review the top for imports against 8.7 hours for
100 assessees as per central ex- OECD countries and instant clea-

Nandan Nilekani Can Strike A Balance


tuck-in acquisitions that are requi- cise and service tax revenues rance in as many as 21 countries.
red to fill the capabilities gap wit- according to FY17 data and That translates into a cost of $536
hin Infosys on the digital side, sa- match that with their tax pay- per consignment in India compa-
id Pai. Fund managers and analysts ments in the GST regime. red with $111.6 in OECD countries.
peers, said CLSA analyst Ankur 2014. He was opposed to the Rs 17.38 hand, said Girish Pai, analyst with said Nilekani will play an impor- Where possible, the officials Key areas of concerns for a tra-
From Page 1 Rudra in a note, while reiterating a crore severance package for for- Nirmal Bang. tant role. have to also consider value- der are assessment, clearance of
buy rating on the stock with a price mer chief financial officer Rajiv Our sense is that him being sta- Continuity of Nandan Nilekani added tax and central sales goods, refunds and disputes, add-
While few in the market question target of `1,140. The board compo- Bansal and a pay increase for Sikka tioned in Bengaluru rather than in as the chairman would be critical tax revenues under the pre- ressable in a time-bound transpa-
Parekhs credentials, there is a sition is still a pending task given soon after his first year. Murthy the US may mean that founders will to ensure a harmonious promoter- vious regime. rent manner through IT-based to-
lingering concern among inves- several empty chairs vacated by had also sought a probe into the ac- indirectly have some influence in management-board relationship, The field officials have also ols, knowledge partnerships, sa-
tors and analysts on whether he the last board. Infosys has to tread quisition of Israeli firm Panaya. running the day-to-day functions of said Pankaj Kapoor, analyst with been asked to look at the input id Rahul Shukla, executive direc-
would be given a free hand to run carefully with its new board. Sikka had attributed the reason the company. JM Financial Research. tax credit claimed under the tor, indirect tax, PwC. Simpler
the company. The founders role in the company for his exit to baseless, malicious After Sikka took charge of Info- Credit Suisse said it will watch GST regime and compare it and predictable rules will go a
Brokerage CLSA raised these is- tops the list of concerns among and personal attack. sys in mid-2014, the office of the out for changes in Infosys key per- with the pre-GST regime to long way to improve the trade out-
sues in a client note after the CEO long-term institutional sharehol- While Sikka was based in the US, CEO moved from Bengaluru to Pa- sonnel and whether the companys see any abnormal or unusual look and help Indias position of
appointment. The brokerage said ders, among the reasons for Sikkas Parekh will based in Bengaluru, lo Alto. An ET report on October 26 steps up the scale and number of its credit availed now, which co- trade facilitator globally.
there was lack of clarity on whet- resignation from Infosys in August. which may have a bearing on his said the Palo Alto office, after Sik- acquisitions. uld have led to lower tax. The Deloitte partner MS Mani said
her directors would step back and Co-founder NR Narayana Murthy ability to act freely. kas exit, had been dubbed a liste- The chief investment officer of a analysis will also include businesses are eager for online,
let the CEO run Infosys. was sharply critical of corporate ning post and the action had shif- large mutual fund, who did not monthly turnover details be- real-time, advance rulings on
Indeed, Infosys has seen several governance practices at Infosys OFFICE IN BENGALURU ted to Bengaluru. want to be identified, said the com- fore and after GST and expla- classification issues, among the
rounds of such exits over the past since Sikka, the companys first It remains to be seen whether Pa- It also remains to be seen if he pany needs a phase without dis- in any variations in collec- key reasons behind Customs dis-
10 years more than all its serious non-founder CEO, took charge in rekh will be given a complete free has a free hand in doing many more tractions. tions under the two regimes. putes.
https://t.me/TheHindu_Zone https://t.me/pdf4exams

WWW.ECONOMICTIMES.COM
Economy: Macro, Micro & More  13
Short Takes
PSBs Look to Frame Common WTO: Agenda
Rules to Value Stressed Assets & Challenges
 Pensioners' Body Seeks
`7.5K as Minimum Pension
NEW DELHI: Nearly 100,000 mem-
Developed countries are trying to add new items to the WTO
bers of a pensioners' body are set to
stage a protest march to Parliament
Bankers group working to find ways for faster resolution of loans extended by consortia agenda while not showing too much interest in the one thats
already been agreed to. India faces the challenge of keeping the
on Thursday, pressing for a set of
visioning has adversely impac- US, the EU and the rest of the developed world interested in the
Common Cause
demands, including `7,500 minimum monthly Dheeraj.Tiwari ted capital ratios for public sec- multilateral system while safeguarding its interests.
pension. The EPS-95 National Agitation Com- @timesgroup.com tor banks. Kirtika Suneja takes a look at the upcoming WTO ministerial to
mittee is pushing for a minimum pension of Bankers group HOW WILL IT HELP Experts said the common valu-
New Delhi: The finance mini-
be held in Buenos Aires between December 10 and 13.
`7,500 under Employees Pension Scheme looking at common BANKS COULD RULES TO SPEED UP ation norms will certainly bene-
stry is working with state-run fit the smaller lenders because
1995 (EPS-95) for retired staff throughout
lenders to frame a common set of
rules of valuation empanel rating resolution where
they blindly follow the lead bank
THE BIG PICTURE
India. Currently, EPS-95 provides for a mini- agencies for multiple banks are
rules for valuation of stressed as- valuation involved in a joint lenders forum.
mum monthly pension of `1,000. We are on
sets for faster resolution of loans
Group
This is good risk management
three-day hunger strike at the head office of formed FASTER COMPROMISE EFFECTIVE DEVELOPED WORLDS ...AGAINST DEVELOPING
extended by consortia of banks. practice. If banks can arrive at a
the Central Provident Fund Commissioner and during and close follow monitoring to LACK OF INTEREST WORLDS UNFULFILLED LIST
A senior finance ministry offi- consensus and work out a resolu-
banking up as all banks will ensure better
after that, if our demands are not fulfilled, we cial said a select group of ban- be on same page recoveries tion plan, they may not need to ta- US and EU only keen on WTO to Doha agenda on backburner
will start a march on December 7 at the Ram- kers is working to arrive at com- conclave ke large haircuts if these compa- the extent it meets their interests
Developed Countries not part of
leela Ground to Parliament, said Virendra mon rules of valuation.
It has been observed that in ca-
PSB NPAs OF PSBs AS `7.33 nies go into liquidation, said
MP Shorawala, a former inde- They prefer world not too regional trade pacts
Singh of EPS-95 National Agitation Committee. Manthan OF JUNE 2017 lakh crore interested in only have WTO
ses of joint lending, banks are pendent director with Central bilateral
the old Work
unable to arrive at a common va- Bank of India. or regional
 15th Finance Commission luation, which stalls the resolu-
Programme
this group said which are yet to be resolved thro- The government recently trade pacts
to Take Views of Think-tanks tion process. Further, individu- Experts said banks could also ugh the Bankrupcty Law, he sa- amended the Bankruptcy Code
Trump administration against Lack of progress at WTO means
ally, banks also fear that if they the norms get rating agenci- id, adding the need is to get faster under which any promoter with such countries will lose out
NEW DELHI: The newly-constituted agree to a certain haircut, it may multilateral trade talks,
will benefit es empanelled compromises and close follow- a non-performing loan for over a
blocked appointment of judges In bilateral or FTAs and
15th Finance Commission held first not stand the scrutiny of vigilan- small lendersfor valuation, ups. Effective monitoring will year is not eligible to be a resolu-
ce agencies, the official said, ad- since they which will furt- further ensure better recoveri- tion participant. regional pacts regional pacts
meeting on Monday and decided to Brexit has New items
ding that new norms will address blindly her strengthen es, he said. Bankruptcy proceedings have they may be addressing
involve think-tanks in drawing up added to the being forced forced to give market access
such concerns. follow the the asset valua- Non-performing assets of PSBs been initiated at the National uncertainity into agenda
its report that will primarily deal with devolu- up more and tariff issues
The group was formed during tion mechanism.
lead bank in a have increased to `7.33 lakh crore Company Law Tribunal (NCLT)
tion of revenue between the Centre and states. PSB Manthan, a two-day concla- joint lenders This will also as of June 2017 from `2.78 lakh for time-bound recovery from
The Commission, headed by former Planning ve of PSBs and has representa- forum work as a stan- crore in March 2015. the 12 largest defaulters in six to
Commission member N K Singh, also discussed tion from all leading banks. dard operating In a recent report, ratings firm nine months in NPA cases to the
the terms of reference of the panel and other A bank executive who is part of procedure (SOP) for all cases ICRA said the surge in credit pro- tune of `1.75 lakh crore.
procedural issues, a finance ministry state-
ment said. The meeting was also attended by
Shaktikanta Das, Anoop Singh, Ashok Lahiri
and Ramesh Chand. Fitch Pares Indias FY18 Growth Use Discretion
Fairly in Probe: WHAT INDIA NEEDS
TO PUSH
THE BIG
CHALLENGE
WHERE INDIA NEEDS
TO BE ON GUARD
 Longer Fixed Cost Recovery
Period Likely for Hydro Plants
NEW DELHI: The government is
Forecast to 6.7% from 6.9% package is likely to help address
Jaitley to DRI
New Delhi: Finance minister
Arun Jaitley on Monday asked
FAST TRACK
DOHA AGENDA
1 2
Keep everyone
interested in WTO
E-COMMERCE
Comprehensive talks
on digital trade
the capital shortages that have revenue intelligence officials
looking at extending fixed cost Blames lower than hindered the banks lending ca- to use their discretion fairly
Bring Doha
development
Dont bring
in new issues
India, Africa are
recovery period of hydro projects opposed to this,
till Doha is
to 30-35 years from 12 years at expected recovery in pacity, it said.
Muted food prices have kept in-
and reasonably in their inves-
tigations and use technology
agenda to
the forefront addressed
fearing market
access to foreign
present to bring the tariff down to as low as `2
per unit, power minister RK Singh has said. The
July-Sept quarter flation low and the rupee has
appreciated sharply against the
to deal with offenders.
The power of revenue offi-
DISCUSS FOOD SECURITY companies
3 CHALLENGES INDIA FACES FISHERY SUBSIDIES
ministry is working on the hydropower policy dollar since the beginning of cers are quite wide so the exer-
this year, the agency said. cise of discretion has to be fair, 1 US non-engagement India is against
to provide `16,000-crore assistance to pro- Wants a
Our Bureau/PTI These deve- reasonable and productive, subsidies
jects to promote clean energy and it is expect- carve-out
lopments give he said at the celebration of 2 EU wants to link it with leading to
ed to be tabled before the Cabinet this month. for fuel
New Delhi: Fitch Ratings has headroom for 60th anniversary of Directora- domestic support illegal,
The rating subsidies
pared Indias growth forecast for the RBI to keep te of Revenue Intelligence unreported &
agency said No export of to its small
 India and Germany Seal this financial year to 6.7% from interest rates (DRI), CBEC.
3 unregulated
it expected subsidised food fishermen
(IUU) fishing
Several Loan Agreements 6.9% estimated earlier citing lo- Indias GDP quite low in or- Jaitley said that when the suc-
PUT IN PLACE SPECIAL SAFEGUARD MECHANISM
wer than expected recovery in growth to der to help lift cess rate of prosecution and INVESTMENT FACILITATION
NEW DELHI: India and Germany on the second quarter. For 2018-19, agency said it expected Indias pick up in the the economy, it penalty is high, it would act as a Will give developing Prevent cheap Gobal rules giving foreign
Monday signed several agree- the credit rating agency has cut GDP growth to pick up in the next two said. deterrent for offenders. He sa- countries tools imports into investors the right to enter
ments, including a 200 million euro the forecast to 7.3% from 7.4%. next two years. years Fitch said the id that with every passing ge- to control developing countries without regulations
funding pact for climate-friendly Growth has repeatedly disap- Gradual implementation of pick-up in glo- neration, the nature of econo- import surge countries
pointed in recent quarters, alt- the structural reform agenda is bal growth has been better than mic offence is changing and India says investment
urban mobility project. The Government to BETTER REGIME FOR DEVELOPED WORLD SUBSIDIES is a matter of
hough this has partly reflected expected to contribute to higher expected and went on to project technology is being used to
Government Umbrella Agreement concerning one-off factors including the de- growth, as will higher real dis- 3.2% expansion this year and commit those offences. 1 Challenge farm domestic policy
financial cooperation in 2016 (II) under the monetisation programme of posable income, it said. The go- 3.3% next year. Technology is a great enabler subsidies by EU & US MSMEs
Indo-German Development Cooperation was November 2016 and disruptions vernments bank capitalisation Chinas slowdown is likely to for offenders and DRI should
formalised. An amount up to 200 million euro related to the implementation of and road building plans will be only modest, while the stabi- use it effectively to track down 2 High susbsidy on Facilitate SME India, Africa
the introduction of the Goods support growth and enhance bu- lisation in commodity prices is economic crimes. At times, the select produce trade; not cov- fear it might
for financial cooperation in form of loan for of their interest ered under the lead to
and Services Tax in July 2017, siness confidence, the rating helping emerging markets out- flight of capital may be so quick
project 'Climate Friendly Urban Mobility III' have distorted existing Doha ecommerce
the agency said in its Global Eco- agency said. side China to continue to reco- and lean organisation like DRI
and 11 million euro accompanying measures in nomic Outlook report. The details (of bank capitali- ver from the downturn in 2015, would need to continue to up- world trade mandate creeping in
form of grant for four projects was signed. The New York-headquartered sation) are not clear yet, but the the agency said. grade skills, he said. PTI
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14  THE ECONOMIC TIMES The Edit Page THE ECONOMIC TIMES | NEW DELHI / GURGAON | TUESDAY | 5 DECEMBER 2017

What difference will his ascension from vice-president make to the Congress?
New Congress Under RED HERRING

Its New President?


Democratic politics will shape Gandhis conduct
With Rahul Gandhis unopposed election as president of
Rahul Ban Gaya President in politics. Its a blink of an eye, tho-
ugh, when it comes to the priming of
the Congress party, the national Opposition gets a full-ti- Rahul the Politician.
me leader who is vocal, has energy, and is mobile across
the country. This is good for the countrys politics. Sonia
Ten years ago, when he became Co-
ngress general secretary, there was Highway
indeed a perceptible change in the
Gandhi commands respect as a benign leader but stands
at one remove from the hurly-burly of day-to-day politics,
party. But that was because of what
the Congress in government was up
to Bliss
to, rather than the effects of the sci-
and that was the case even before she started to ail. Rahul Indrajit Hazra on strapping on the proverbial guit-
KULBIR KAUR
assumes charge of the Congress at a time when the BJP, ar. In 2007, with the Sonia Gandhi-led It is rare to see a sannyasi Sikh,
under Narendra Modis leadership, continues to grow and eres a genuinely serious UPA government under Prime Mini- who has renounced family life,
expand. His role as leader of the Opposition will lead his
party to champion the poor and the subaltern, and to look
for chinks in the policy the government deploys to reboot
the economy, including via resolution of bad loans. This
H question without a shred ster Manmohan Singh in its third ye-
of frivolity: what singular ar, the Indian economy clocked its hi-
or single difference ghest growth rate of 9%, the effects
will Indian National Cong- of which still linger.
ress vice-president Rahul Gandhi be- Farmer debt relief packages furth-
coming president of the Indian Na- erpolitically firmed up the firm grou-
in pursuit of personal salva-
tion. Even meditation is not an
individual act in Sikhism. Sha-
bad-Kirtan is performed in san-
gat, prescribed as the most infl-
uential means to attain the spi-

FILE PHOTO
should lead to optimal solutions, not to stalling of growth. tional Congress make to the Indian ndthe Congress-led government was ritual heights of meditation.
Too much energy is wasted bemoaning the absence of National Congress? building the UPA on. Suited-booted The fifth Guru Arjan Dev
democratic elections within the Congress. Is there any Will it usher a change in how new India, too, was vocally happy with a said, Individual recitation of
wine is poured into the Not-So-Grand government that understood India Okay, so now whats the plan? the Word is like water supply
other Congress leader whose redemptive potential stands Old Bottle? Will it galvanise party Incs demands. The Congress was to- from a well that can irrigate the
thwarted by Rahul Gandhis elevation? We dont know, workers beyond a competitive urge to uchable enough in those pre-2G cre- ng, he was mistaking rolling up his ku- whether it be P Chidambaram on field of one person, whereas
even as his staunchest critics must show who celebrates Rahuls ascen- aking-and-reeking-of-corruption ye- rta sleeves with organisational skills, the way the goods and services tax kirtan is like a cloud-burst that
sion the most? Will his counterpart ars, for both the Left Front as well as and university campuses with the na- was unrolled, or Manmohan Singh on turns the crops green in many
maintain that Rahul has been by and in the BJP, Amit Shah, now finally ta- the Trinamool Congress not to men- tions electorates. Sharing meals in how demonetisation has caused mo- fields. Shabad-Kirtan, singing
far the most visible and popular ke out Operation Plan B from the tion Nitish Kumars Rashtriya Jana- dalit households werent great reach- re anguish than relief almost every of the glories of God with dev-
face of the Congress, especially with bottom shelf of his desk and quiver ta Dal as well as Sharad Pawars Na- outs for a politician who dropped off Rahul gesture or utterance has drow- otion, is considered not only as
ever so slightly? tionalist Congress Party to shack the face of the Earth in between. ned it out, his trotabouts in Gujarats the most effective but also the
his mother moving to the backdrop of up with the GOP in the UPA tent. In- temples to zap the BJPs hard-Hind- easiest way to realise God in Si-
day-to-day party functioning. At least Stop Prez: Its Unprezidented ternationally, Indias stock was high, This is That Chance utva with the Congress soft-Hind- khism. Shabad-Kirtan occupi-
the Congress, arguably more than any In the Congress, as the number of no- with Manmohan Singh is King Sin- Dynasty was never the real problem. utva being just the latest. es a central place in all Sikh rit-
minations for the election of party gh bringing India and the US closer The charm of political hand-me-dow- In the 1980s-90s, the production qu- es and ceremonies. The traditi-
other party, has been equipped with a president showed on Monday, anyone than arguably ever before or since, nery had been as effective in the past, ality of most Hindi commercial cin- on was started by Guru Nanak
succession plan. As for dynasty, the regional parties that can be president, as long as its Rahul via the India-US civil nuclear deal. as it continues to be outside immedi- ema had plummeted to new depths. and was greatly influenced by
Gandhi. As de facto judders into de It was in this atmosphere brimmi- ate national politics. The fact that Ra- This was largely because producers the devotional form of worsh-
revolve around their founding leaders make no bones
jure, what will be the consequences ng with positive particulate matter huls assertive figure looking down were only interested in spending mo- ip of the Bhakti movement.
about it. The Janata Party offshoots exercise democracy of Rahul coming to the fore of the fo- that Rahuls training wheels were ta- from billboards prior to the 2014 Lok ney on getting an Amitabh Bachchan Guru Nanak also spread his
by splitting and growing like single-cell organisms. The refront as he has been since 2014 ken off. He might as well have and, Sabha elections did not work has as or a Govinda in their films. The box message with melodious mus-
when it was Rahul (and not his moth- in hindsight, jolly well should have much to do with his inability to do po- office was not concerned about sets ic. Hence, the hymns in Guru
Communists practice centralism, whose democratic na-
er Sonia Gandhi or Prime Minister become Congress president in 2007 litics sense the mood of the nation, and storylines, and songs plagiarised Granth Sahib are all arranged
ture is visible only to the Polit Bureau. Of course, our par- Manmohan Singh) who was the lead itself. It would have made no differen- sense the damage control required, from western tunes were regular hits. by music, based on 31ragas.
ties should become more democratic in their function- campaigner during the last Lok Sab- ce to real hierarchy, even with Sonia know whom to listen to and whom to This worked for a while. Until produ- The sangat may chant the sac-
ha elections? Gandhi politically active. It is cute, th- listen through inside his party as it cers started getting flops despite sp- red hymns in unison, or a gro-
ing, but that applies to all parties, not just the Congress.
The elevation, which pips Britains ough, to imagine senior Congressmen had to do with Narendra Modis suc- ending good money on that one star. up of musicians known as
Does Rahul Gandhi have it within him to lead a sensi- Prince Charles to the post as far as behaving any differently with Rahul cessful campaign specifically against India needs an Opposition to write Raagis, may perform Kirtan,
ble Opposition, and revive the Congress? The strength of long, sustained waits for succession Party Member, Rahul Party General the dynastic nature of the Congress. home about. The Congress is still the as is often the case.
are concerned, probably keeps the Secretary, Rahul Party Vice-Preside- With noises of disaffection towards least ineffective party to take on that Congregational singing in
Indian democracy rather than individual capability will
2019 Lok Sabha in mind. Or maybe nt, and Rahul Party President. the NDA government growing, per- role. But the party putting all its mo- praise of God binds people into
shape the answer. This is because it is the institutional 2024. A year-and-a-half is a long time When conditions were most inviti- haps one theory is that the Congress, ney on one star who hasnt clicked a social unit inculcating amo-
role he has to play, within the framework of Indias Cons- under Rahuls presidency, can tap and for the last decade, will continue to be ng the listeners the values of
channelise this qualifiable to a quan- an impediment. brotherhood, equality and
titution, that will shape Gandhis political conduct, more tifiable. Once again, though, to mix So, will Rahul as de jure party presi- seva, sidelining all the conside-
than his own personal proclivities. Of late, for every effective critique made by a metaphors, that would be putting the dent make any difference? Well, at le- rations of caste, religion, gen-
non-Rahul Gandhi Congressman, almost every cart before the one-trick pony. ast, Bade Miyan Chote Miyan was a hit. der or social status. This way
For every effective critique made by of meditation for salvation is
Rahul gesture or utterance has drowned it out a non-Rahul Gandhi Congressman indrajit.hazra@timesgroup.com regarded as the simplest to per-
form, due to the lack of any

Fix the Systemic TAKE FIVE


rituals or need for elaborate
arrangements.

Flaws in Healthcare Asias Top 10 Exporters


Exports from Asia totalled about $5.858 trillion in 2016, down 3.9%
AAKAR PATEL
Top 5 Matters About
Something That Matters This Week
Chat Room
A private hospital in the Capital last week handed over to grie- since 2012 when Asian shipments were valued at $6.094 trillion. Asian
exports represent more than a third (36.9%) of total world exports
ving parents two pre-term babies in a plastic bag, declaring
Top Asian export countries
DIFFERENCES BETWEEN
CONGRESS AND MUGHALS
GDP Isnt the
both to be dead; one turned out to be alive. The hospital has sin-
Democracy 1 Mughals 3 Aurangzeb killed his Best Indicator
ce sacked two doctors over the incident. But the need is to fix Rank Exporter 2016 exports % Asian total
Change

systemic flaws in the countrys healthcare system marred by is the art and since 2012 didnt believe in brothers Dara Shikoh,
Apropos Power of a Single
primogeniture Murad & Shah Shuja to
poor transparency and accountability, frayed medical ethics science of 1 China $2.119 trillion 36.2% 3.4%
2 Shah Jahan get the throne
Number by Mythili Bhusnur-
math (Dec 4), the single numb-
and rampant collusion of doctors, pharma companies and hos- running the 2 Japan $644.9 billion 11.0% 19.2%
killed his 4 Mughals never er of GDP is increasingly asso-
pital administrations to carry out needless investigations and brothers lost Gujarat ciated with the growth index
procedures, merely to inflate the bill. Often, doctors are paid
circus from the 3 Hong Kong $516.6 billion 8.8% 4.8%
Khusrau and of a country. However, this ob-
4 S Korea $495.5 billion 8.5% 9.6% 5 Mughals had something
commissions for referring patients to labs. This must end. So monkey cage. Shahryar to get valuable to inherit
session drowns the welfare in-
5 Singapore $329.9 billion 5.6% 19.2% the throne dex of a country as GDP rises
should the practice of linking the remuneration of doctors to H L Mencken with the sale of products ir-
Source: worldstopexports.com

the number of procedures they prescribe. Writer 6 Taiwan $280.5 billion 4.8% 6.8% respective of whether it is pro-
Fixing the system calls for proper and 7 India $260.3 billion 4.4% 10.1% duction of war goods or con-
robust regulation, and greater accounta- sumer goods. Of course, GDP
8 Thailand $213.6 billion 3.6% 6.9% figures are excessively depen-
bility within the system. Systems and dent on the formal sector and
9 Vietnam $211.4 billion 3.6% 84.6%
protocols must be in place for clinical ca- may bypass actual growth in
10 Malaysia $189.4 billion 3.2% 16.7% the informal sector. GDP isnt
re, medicine procurement and manage-
Illustration: ANIRBAN BORA evil but does have demerits.
ment. There should be norms on, say, how
frequently the air in intensive care units NANDANI KABRA
should be scrubbed or reporting clinical Ujjain
outcomes to facilitate analysis of medical data. Hospitals
must display prices for procedures to ensure transparency. A TV VIEWERSHIP Citings Parekhs Hands
designated authority should be in place to monitor the activi-
Full at Infosys
Kohli, Put the Channel On Literary
ties of hospitals and labs and penalise errant conduct. Global-
ly, countries have standard treatment guidelines, and that is This refers to the report, Rev-
iving Growth Tops Infy Boss
the way to go. The national healthcare accreditation board
must work with hospitals and service providers to raise the
Licence Parekhs Agenda (Dec 4). A
soft-spoken but firm individu-
quality of healthcare. of an average 14.4 million impressions. The Kohli magic works not just on-fi- al, Salil S Parekh as the CEO
KAZUO ISHIGURO
The Centre had enacted a comprehensive law, known as the Now add a star performer like Kohli, eld but off it as well. With more than 15 and MD is expected to give In-
and the viewership graphs go off the brand endorsements under his belt, It seems increasingly likely fosys a new direction and ste-
Clinical Establishments (Registration and Regulation) Act, in charts. In fact, sometimes even a dull Kohli is the seventh most valuable that I really will undertake the er the compa-
2010 to regulate public and private hospitals and single-doctor match comes alive on the viewership brand among sportspersons globally. expedition that has been pre- ny out of trou-
clinics. Health is a state subject, and only 10 states have adopt- charts when Kohli gets going. Its clear this nation loves its heroes. occupying my imagination now bled waters.
ed the law. An improved law must be adopted by all states. In the fifth ODI of the Micromax Cup Whether in the field of sports, films or for some days. An expedition, I The new citi-
Partho Dasgupta against Sri Lanka, Kohlis 110 off 116 politics, people who outshine their pe- should say, which I will under- zen of the IT
deliveries sealed the series 5-0 for In- ers with their vision and performance take alone, in the comfort of bellwether
dia. It was a dead rubber, but Kohlis are able to captivate the nation. This Mr Farradays Ford; an expe- will also have
In the world of cricket, Virat Kohli is time at the crease bumped up viewer- reflects in TV viewing. When Salman dition that, as I foresee it, will the onerous
already a legend. As India captain, he ship by 30%, compared to the average Khan appears on the weekend episodes take me through much of the task of main-
India should take a cue from China leads from the front, wears his passion for the entire match. of Bigg Boss, viewership spikes by 30%. finest countryside of England taining a good rapport with
that is waging a war on bromodosis on his sleeve, and under his captaincy, In the second ODI at Kolkata of the Amitabh Bachchan continues to be a to the West Country, and may the founders, employees and
the Indian cricket team has acquired a recent India-Australia series that Ind- draw, as a TV host as well as a brand am- keep me away from Darling- other stakeholders. One is sure
lethal edge. ia won by 50 runs, Kohlis 92 took imp- bassador. Prime Minister Narendra ton Hall for five or six days. his long innings at Capgemini

When Malodorous Breaking records has become a habit


with Kohli, as has winning games, awar-
ds and accolades. There is no doubt that
his spirit is infectious, almost like the
ressions up by as much as by 31%. In-
terestingly, female viewership of this
match was as high as 60%. This syncs
with his image, doesnt it?
Modi continues to drive up viewersh-
ip whenever he appears on TV. View-
ership doubled this year when he deli-
vered his Independence Day speech
The idea of such a journey
came about from a most kind
suggestion put to me by Mr Far-
raday himself one afternoon
will stand him in good stead.

N J RAVI CHANDER
Bengaluru

Socks Raise a Stink pull that Sachin Tendulkar had over our
cricket-crazy nation. The same trends
can be seen in television viewership.
Conversely, when Kohli is dismissed
early, viewership dips sharply. In the
opening game of the Champions Tro-
from Red Fort.
Coming back to Kohli, at the rate at
which he is going, he is sure to break
almost a fortnight ago, when I
had been dusting the portraits
in the library. In fact, as I recall, Virat Smashes
Cooped up in a passenger vehicle rattling for hours along That cricket rules Indians hearts, hea-
ds and TV screens is stating the obvious.
phy, which India lost to Sri Lanka, the-
re was an immediate viewership drop
many records in the years to come.
Each time he does that, rest assured,
I was up on the step-ladder
dusting the portrait of Viscou-
the SL Mask
potholed Indian mountain roads would not put passengers But Broadcast Audience Research Co- of 50% once Kohli was out. But the Ba- there will be a higher and higher nt Wetherby when my employ- Apropos Masks of Shame by
in a frame to tolerate any further assaults on any of their uncil (BARC) India data clearly shows hubali of cricket came good in the mat- viewership peak on the BARC India er had entered carrying a few Anand Vasu (Dec 4), cricket-
person. So, it was not surprising that there was chaos in a that within the three formats of crick- ch against South Africa with a brillia- measurement screen. volumes that he presumably ers on the field with masks on
bus heading from Dharamsala to Delhi when a traveller took et Test, One-Day International (ODI) nt, unbeaten 76, ensuring a viewership wished returned to the shelves. their faces is unprecedented
and Twenty20 (T20) the last two are surge of over 50%. This match sealed The writer is CEO, Broadcast Audience On seeing my person, he took in international cricket, and
off his shoes, filling the cabin with that distinctively ripe, sul- overwhelmingly more popular. a semi-final berth for India as well. Research Council India the opportunity to inform me the Capital was witness to this
phurous smell of unwashed socks. Apart from dogs and be- ODIs and T20s are actually the ideal that he had just that moment shocking scenario as Sri Lan-
ars, mosquitoes are supposed to find that odour utterly irre- formats for TV. These shorter formats, finalised plans to return to the kans tried to to protect them-
sistible a weakness used by malaria eradication research- being result-oriented and within a stip- US for a period of five weeks selves from high pollution.
ulated timeframe, lead to stickier eye- between August and Septem- Delhi should not have been
ers. But the same cannot be said about at least most human balls and higher volumes too. BARC ber. Having made this announ- chosen as a venue when it was
beings. Those who have a foot fetish or a penchant for durian India data shows that on an average, the cement, my employer put his clear that the Capital had high
and Limburger cheese are notable exceptions, and passeng- viewership for an ODI and T20 aired volumes down on a table, seated pollution and smog. Hencefor-
ers on that bus clearly did not fall in that category. on a single channel garners anywhere himself on the chaise-longue, th, umpires would need to car-
between eight million and 12 million and stretched out his legs. ry fog and pollution meters to
Most Indians are remarkably tolerant when it comes to ex- impressions. The viewership garnered It was then, gazing up at me, check if the game can be conti-
tremely strong smells, human-induced and otherwise. The- by a channel airing a Test series on an that he said, You realise, Stev- nued. Virat Kohlis record-bre-
refore, that the man with stinky socks was eventually arrest- average is 2-2.5 million impressions. ens, I dont expect you to be lo- aking double ton that surpass-
Within ODIs and T20s, the data match- cked up here in this house all ed Brian Laras record deserv-
ed seems rather harsh as bromodosis smelly feet often
es the sentiment of a game. High-scori- the time Im away. Why dont es kudos as this was achieved
cannot be helped, especially in winter. But it was also incon- ng games and close finishes invariably you take the car and drive off under challenging conditions.
siderate of him not to get rid of them despite repeated requ- garner higher viewership. Take the In- somewhere for a few days?
dian Premier League (IPL). On an aver- You look like you could make S N KABRA
FILE PHOTO

ests from fellow passengers, given that they were travelling


age, matches with scores of 180 and ab- good use of a break. I did not Mumbai
in air-conditioned coaches. Two years ago, China claimed it
ove garnered 21.26 million impressions. quite know how to reply to this.
has liberated its soldiers from bromodosis with the induction Low-scoring matches, with scores of Letters to the editor may be addressed to

of new anti-odour boots. India should take the cue. less than 100, managed a low viewership The cameras are there, silly From The Remains of the Day editet@timesgroup.com
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CONTRAPUNTO Small deeds done are better than


WWW.ECONOMICTIMES.COM great deeds planned PETER MARSHALL Around the World  15
US Drugstore Chain
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Four Catalans Kept
in Spanish Jail; Six
Republicans Plan Stopgap Fix to CVS to Acquire Insurer
Others Freed on Bail
Madrid: A Spanish judge on
Monday ordered that four promi-
nent members of the Catalan in-
dependence movement should re-
Try to Avoid US Govt Shutdown
With government funding set to expire on Friday, Republicans are pushing
Aetna for $69 Billion
New York: US drugstore chain
main in custody, including the No. 2
of the ousted regional government, for a stopgap spending measure that would extend it through December 22 operator CVS Health Corp said on
Sunday it had agreed to acquire
who will campaign in a polarised ther complicate negotiations on US health insurer Aetna Inc for
regional election from a jail near
Madrid. The judge set 100,000-
Washington: Republicans are
moving toward passing a two-
government funding, and any
failure at the fundamental task Trump Endorses $69 billion, seeking to tackle soar-
ing healthcare spending through
bail for the six other Catalan
politicians who had been jailed
week stopgap measure to avoid a
looming government shutdown,
of keeping the government run-
ning would swi ftly undercut Roy Moore for lower-cost medical services in
pharmacies.
in early November, and ordered
but the path in the coming weeks
is treacherous, with obstacles on
Republicans display of progress.
The threat of a shutdown esca- Senate, Despite This years largest corporate ac-
quisition will combine one of the
their passports to be confiscated.
The six were expected to leave
both sides of the aisle as lawmak-
ers push their own priorities,
lated last week after President
Trump fired off a Twitter post
Sex Allegations nations largest pharmacy benefits
managers (PBMs) and pharmacy
jails near Madrid later in the day. some unrelated to government attacking the top Democrats in Washington: President Donald operators with one of its oldest million. They foresee it adding to ad-
Meanwhile, Catalan ex-president spending. Congress, who in turn pulled out Trump endorsed U. Senate candi- health insurers, whose national justed earnings per share by the low-
With government funding set of a planned White House meet- date Roy Moore on Monday, business ranges from employer to mid-single digit percentage points.
Carles Puigdemont and four of his
to expire at the end of Friday, ing, deepening the rift between throwing his weight behind the healthcare to government plans. Their vision expands beyond
separatist allies heard that they Republicans are aiming to buy the parties at a time when they embattled Alabama Republican The deal comes after Aetnas capitalising on CVS existing
will be judged on whether they more time so they can negotiate are already at odds over issues before a special election next $37-billion plan to acquire smaller MinuteClinic structure, which
can be extradited from Belgium to over a long-term spending pack- The task is complicated like taxes, health care and immi- week that has been rocked by al- US health insurance peer Humana largely offers preventative services
age. The task is complicated by a gration. legations of sexual misconduct. Inc was blocked in January by a US like flu shots, the companies chief
Spain on Dec. 14, exactly one week
before the election. The group is feud between President Trump by a feud between Republicans stopgap spending In a post on Twitter, Trump said federal judge over antitrust con- executives said in
refusing to return to Spain to face
and Democrats, whose votes
Republicans need to secure pas-
Trump and Democrats, measure would extend govern-
ment funding through December
Republicans needed Moore to
win to secure votes on key issues
cerns. A proposed combination of
peers Anthem Inc and Cigna Corp
Aetna
an interview.
When you walk
rebellion, sedition and embezzle- sage, and measures on the politi- whose votes Republicans 22. On Sunday, the Senate major- such as immigration. Democrats was also shot down.
shareholders
will own about
into CVS theres
ment charges that can be punished cally fraught issues of immigra- ity leader, Mitch McConnell of Aetna shareholders stand to re- t h e p h a r m a c y.
with decades in prison under the tion and the Affordable Care Act.
need to secure passage Kentucky, tried to play down fears
refusal to give even one vote for
massive Tax Cuts is why we need ceive $207 per share in the deal with
22% of the
What if theres a
combined
countrys criminal laws. AP T h e p o s sibi l it y o f a s hut- that has struggled to produce big about a coming crisis. Republican Roy Moore to win in CVS, the companies said. The con- vision and audi-
company,
down looms just after Senate achievements despite controlling Look, theres not going to be a Alabama, he wrote. sideration comprises $145 per share ology center, and
while CVS
Republicans succeeded in pass- Congress and the White House. government shutdown, he said It was Trumps strongest ex- in cash and 0.8378 CVS shares for perhaps a nutri-
shareholders
ing their sweeping tax overhaul, But promises made to secure on ABCs This Week. Its just pression of support for Moore each Aetna share. Reuters first tionist, and some
will own the
Yemens Rebels Claim a moment of triumph for a party passage of the tax bill could fur- not going to happen. NYT since the sexual misconduct ac- reported the terms of the deal ear- sort of care man-
remainder
cusations surfaced against the lier on Sunday. Aetna shareholders ager? CVS CEO
Ex-president Saleh Killed former Alabama judge last will own about 22% of the combined Larry Merlo said.
Sanaa: Yemens Huthi rebels month. Moore, who has denied company, while CVS shareholders Aetna will be operated as a sepa-
claimed on Monday that ex-pres- Trump Still Undecided on Israels Capital, Says Kushner the allegations, responded by
saying he was thankful for
will own the remainder.
The companies said that cost syner-
rate unit and Aetnas existing lead-
ership is expected to run the Aetna
ident Ali Abdullah Saleh had been
Washington: President Donald ident continues to weigh his options Kushners comments were his first Trumps backing. gies in the second full year after the businesses, Merlo said. Aetna will
killed as fighting shook the capital Trump has not yet decided whether ahead of an announcement on the public remarks on his efforts to re- The president has repeatedly transaction closes 2020 if the deal have two of its directors, in addi-
Sanaa following the collapse of his to recognize Jerusalem as Israels matter that is expected this week. start peace talks between Israel and slammed Moores Democratic closes in the second half of 2018 as tion to Aetna CEO Mark Bertolini
alliance with the insurgents. The capital or whether to proceed im- The president is going to make his the Palestinians. And, they came as opponent, former US Attorney they expect would amount to $750 join the board of CVS. Reuters
claim, which could not be indepen- mediately in moving the US Embas- decision, Kushner said in a rare he faces increasing scrutiny over ac- Doug Jones, but in the Republi-
dently confirmed, came as Yemens sy from Tel Aviv to the holy city. public appearance at an event host- tions taking during the transition pe- can primary he had backed
Thats according to his son-in-law ed by the Brookings Institution, a riod following former national securi- Moores rival, US Senator Luther
long and devastating civil war took
a potentially decisive turn. Heavy
clashes were reported in the city
and senior adviser Jared Kushner.
Kushner said Sunday that the pres-
Washington think tank. He is still
looking at a lot of different facts.
ty adviser Michael Flynns guilty plea
on charges of lying to the FBI. AP
Strange, in line with Senate Re-
publicans. Reuters Musk Isnt Joking About
between forces loyal to Saleh and
the Iran-backed Shiite rebels, who
Sending a Tesla to Mars
rently flies its Falcon 9 rocket for
together seized control of Sanaa
from the internationally recognised US, South Korea No Brexit Breakthrough; Merkels Coalition San Francisco: Elon Musk fully
intends to put a red sports car
customers that include Nasa, com-
mercial satellite operators, and the
government three years ago. The
Start Massive Woes Pile Up as made by a company that he runs US military. Falcon Heavy is a far
Huthi-controlled interior ministry
announced Salehs death on the re-
Air Force Drills Irish Issue Derails Talks Key Ally Struggles
into an enormous rocketship made
by another company that he runs
and then fire both into Mars orbit.
more powerful rocket that has been
in development for years. While a
Falcon 9 has nine Merlin engines, a
bels Al-Masirah television station.
A statement read on the channel Brussels: London and Brussels The car, as it hurtles into space, Falcon Heavy has 27. The first test,
announced the end of the crisis of Seoul: The US and South Korea failed to get a much-hoped break- Munich: German Chancellor will be playing a song by David which will precede the attempt to
on Monday began a five-day joint through on Brexit after a series of Angela Merkels conservative Bowie on repeat. fire a Tesla Roadster into Mars or-
militias, referring to Salehs armed
air exercise on the Korean penin- twists and turns that saw their tenta- camp was rocked on Monday It goes without saying that the bit, will be a static fire in which all
supporters, and the killing of their sula involving 230 aircraft and tive deal derailed over the issue of an by a leadership tussle within its song will be Space Oddityand of the engines are activated at once.
leader and a number of his criminal 12,000 American troops, in what Irish border. Success hinged on a com- Bavarian sister party, just as she that this plan was announced, SpaceX has Falcon Heavy launch-
supporters. AFP North Korea has dubbed the larg- promise on the volatile question of the is struggling to forge a new coali- like so many of Musks business es for satellite customers and the US
est-ever joint aerial drill. UKs frontier with Ireland one of its Theresa tion government. decisions, in a cryptic message on military on its manifest. Theres a
North Korea said ahead of the land border with the EU as well as May Horst Seehofer, head of the Twitter over the weekend. A person legitimate rea-son, beyond show-
Vi g i l a nt Ac e its financial obligation to the bloc and Christian Social Union (CSU), familiar with the launch plan at manship, to keep the maiden flight
Malta Arrests 10 over North Korea 18 drills that it the rights of its citizens. will step down as premier of the SpaceX Inc confirmed that it is real. clear of paying customers.
Journalists Murder regularly cites would consider It was not possible to reach a com- Half of Britons Support wealthy southern state in early This SpaceX launch slated for Any time you have a new rocket
the highest- plete agreement today, European 2018, leaving the January will be noteworthy for rea- launching, youre going to learn a
Valletta: Ten Maltese suspects were
military drills
around the level hard-line Commission President Jean-Claude 2nd Vote on Brexit: Poll post to regional sons that go beyond the payload, a lot, said Phil Larson, a former space
arrested Monday over the October peninsula as cou nter mea- Juncker told reporters after lunch London: Half of Britons support finance minister cherry-red Tesla Roadster owned policy adviser to President Barack
16 car bomb murder of investiga- justification for sure in history, with May and the EUs chief nego- a second vote on whether to Markus Soeder. by Musk. It will also mark a Obama who worked for SpaceX
its nuclear and ac c or d i n g to tiator EUs Michel Barnier. May said leave the EU and a majority I wi l l ha nd coming out for the much- and is now at the University of
tive journalist Daphne Caruana
missile-testing the state -run further negotiations were needed. think the government may be over my du- awaited Falcon Heavy, in a Colorado. Just like the first
Galizia, Maltas prime minister and Korean Central The hope was to set the stage for a paying too much money to the ties in the first launch slated for the same flight of a new jumbo jet doesnt
programme
other authorities announced. PM News Agency. mid-December summit of EU leaders EU to open the way to trade quarter of 2018, Florida launchpad that go with a full complement of
Angela Merkel
Joseph Muscat told reporters that It referred to a similar statement to conclude that Britain has achieved talks, according to a new opin- Seehofer said at a sent Apollo astronauts to passengers, it makes sense
10 Maltese citizens were arrested in September, which Foreign sufficient progress in this first ion poll. The poll, published in Munich press conference. I have the moon. This is how the to do a launch where you can
on Monday morning due to a rea- Minister Ri Yong Ho said may phase of talks. While money held up the Mail on Sunday, found 50% paved the way for renewal at the founder, chief executive learn a lot but the payload isnt
include a ground-level test of a hy- talks for months until May upped her of people supported another top in Bavaria. and largest shareholder mission critical.
sonable suspicion of their involve-
drogen bomb in the Pacific Ocean. offer, it was the Irish question that all vote on the final terms of UKs Seehofer, 68, intends to stay on of both SpaceX and SpaceX has had a strong
ment in Caruana Galizias slaying. North Korea regularly cites mil- sides struggled with. exit deal, 34% rejected another only as CSU chairman, a less in- Tesla Inc does year. The company has
Home Minister Michael Farrugia itary drills around the peninsula Ireland insists on open access while referendum and 16% said they fluential post than that of premier cross-market- already flown 16 mis-
said the two additional suspects as justification for its nuclear and the Democratic Unionist Party, whose did not know. The newspaper of the Alpine state. i ng pro -mo - sions in 2017, double the
are also Maltese. Caruana Galizia, missile-testing programme. The 10 lawmakers prop up May in London, said it was the first major opin- The party veteran has held both tion. He has number in 2016, and is
whose reporting focused heavily on regime on November 29 launched are adamant Northern Ireland will ion poll since last weeks media roles since 2008, but has come un- even coined a slated to ferry cargo
an ICBM with improved technol- leave the EU on the same terms as the reports that UK is preparing to der fire after leading his party to tagline for the to the International
corruption on the EU island nation,
ogy that can deliver a nuclear rest of UK. May interrupted her lunch to pay 50 billion to help to move a record-low score in Septembers event : R e d Space Station on Dec.
was killed when a bomb destroyed warhead anywhere in the US, consult with DUP leader Arlene Foster on to talks on a future trade general elections in which the far- car for a red 8 as part of its contract
her car as she was driving near her Elon
and claimed it had completed its after which all parties came out to say pact with the EU. Reuters right Alternative for Germany planet. Musk with Nasa.
home. AP nuclear force. Bloomberg there was no breakthrough. Bloomberg (AfD) made strong gains. AFP SpaceX cu r- Bloomberg

TIPS, TRIVIA & TRENDS Crossword 6958


YOUR DAILY DIET OF FUN AND FACTS
Archaeologists
China Halts Chauvinist Find 3,000-yr-old 1 2 3 4 5 ads about eggs? (14)

Female Morality Lessons Skiing Santas Hold Marquis Tomb 6 7 8


2 Architects engineers stopping

in China
bridge opponents (4)
Chinese
authorities have
shut down a
Court at Ski Resorts Ningxia Hui Autonomous Region in
northwest China might have been under
9 10
3 Someone who throws, say, a bit of
Polo? (6)
4 Top evergeen concealing salt (8)
female morality
class that
provoked anger
Annual Bash the imperial rule of Chinese emperors
much earlier than archaeologists
previously thought, according to the 11 12 13 14
5 Spots cane thats been damaged (4)
7 Help first of close relatives sup-
porting Man Utd leaders (4,2)
by lecturing
recent excavation of a group of 8 Mercy signs novel, novel about
women to shut
3,000-year-old tombs, official media nature (6,8)
up, accept a
reported. Experts from Chinas top 12 Cryptic clue about Republican ill
second-rate role 15 16 17
archaeological research institutions have
in society and gotten gain? (5)
gathered in Ningxias Pengyang County
focus on 18 14 Flyers in sports car reveal corrup-
to join the excavation of the Yaoheyuan
housework, state tion (5)
Ruins, where an area of 620,000 sq mt
media reported 19 20 21 16 Was reluctant coy daughter hug-
has been excavated. Ma Qiang, who leads
on Monday. In a video that surfaced on Chinas ging Romeo? (8)
the archaeological team, said that all of
Internet, an instructor in the class in the
the tombs had been looted prior to the 18 Notice policeman in church who
northeastern province of Liaoning tells students that
start of the official excavation earlier this 22 23 24 25 deals with clubs? (6)
women should talk less, do more housework and
year. However, the team has found the 21 Badminton contestants warmer (6)
shut their mouths. The teacher also says that
main tomb of a Marquis-level ruler 13 23 Left 20 out of bounds (4)
women should not strive to move up in society, but
metres underground. Although no bronze 25 Check rule excluding golf (4)
should always remain at the bottom level. If you 26
burial vessels with inscriptions
order food delivery instead of cooking by yourself,
identifying the owner of the tomb have
you are disobeying rules for women, another
Santa Claus is known for shimmying down chimneys, but for been located, they have found two jade
instructor says. The class was launched in the city of SOLUTION TO 6957 :
one day a year, dozens of Santas try to avoid tumbling down mantis. A similar jade mantis was
Fushun by the Fushun Traditional Cultural Research ACROSS 19 Second best painting by Munch (6) ACROSS: 1 Unassailable. 8 Light up.
a mountain. The 18th annual Santa event took place at unearthed from Chinas World Heritage
Association, which was established in 2011 with the 6 Officer in bar behind Alhambra 20 Plug project by soldier, officers 9 Corncob. 11 Inaugurate. 12 Oral.
Sunday River ski resort in western Maine on Sunday. The listed Yinxu archaeological site near
approval of city authorities. Its aim was ostensibly to
event is highlighted by Santas skiing and snowboarding down Anyang in central Henan Province, which annoyed president (7,7) aide (8) 14 Plectrum. 16 Renown. 17 Gen.
reinforce Confucian values, part of a growing
the slopes to raise money for the Sunday River Community was an ancient capital city in the late 9 Baltic port spreads sand imported 22 Quaint archaism involving Latin 19 Reader. 21 Nicotine. 24 Able.
national embrace of traditional teachings. This is
Fund, which benefits groups in the area. The skiing Santas Shang Dynasty (1300 BC to 1046 BC). PTI by Greek (6) (3-5) 25 Lengthened. 27 Tugboat.
female slavery, not female morality, wrote one
participate in full Kringle garb, including, of course, a white 10 Husband in jam (8) 24 Principal article covers river and 28 Imburse. 29 Looking glass.
angry user of Chinas Twitter-like Weibo platform.
beard and red hat. The Santas must all donate a minimum of 11 Coal burns, some people say, sort moor here (6) DOWN: 1 Upgrade. 2 Altogether.
Education authorities in Fushun said the class had
$15. Online registration to participate filled up in 10 minutes,
been launched without authorisation and would be of cabbage (8) 26 Part of Edinburgh festival helps 3 Superbug. 4 Incite. 5 Acre. 6 Lo-
said Darcy Lambert, a spokeswoman for Sunday River. The
stopped immediately, the official Xinhua news 13 Compelling businessman? (6) extras (6,8) carno.7 All important. 10 Balanced
event has grown in popularity over the years, Lambert said,
agency said. AFP 15 English record companys backing diet. 13 Xenophobia. 15 Men.
with 160 Santas raising $2,500 on Sunday. AP
consent (6) DOWN 18 Niggling.20 Allegro. 22 Innards.
17 Back king governing minute state (6) 1 Hearty circular distributed with 23 Keaton. 26 Soak.
LA, NYC, London Police in Los Angeles, New York and London are
The Daily Mail

Chase Growing
working to untangle an ever-growing mass of
allegations of sexual assault and harassment Japan Japanese officials said on Monday they were
investigating a group of North Korean fishermen after

Mass of Sex Cases


against powerful men. Los Angeles police say
they have more than two dozen such open Probes items reportedly including a fridge, a TV and an
anime poster disappeared from a remote island Dilbert by S Adams
investigations. Beverly Hills police have a dozen
and London at least nine. New York police have North where they had taken shelter. The Japanese coastguard
first spotted the group of tens rickety vessel off the
received more than a dozen complaints but will
confirm only one active investigation. Most of Koreans northern island of Hokkaido on Wednesday as it
struggled during poor weather. The fishermen who
the cases stem from claims against movie mogul
Harvey Weinstein but authorities say theyve After identified themselves as North Korean briefly landed
on an uninhabited island to take refuge. But soon after
also taken complaints made against other men
in power. Unlike cases involving everyday Items the group left, officials noticed items from buildings on
the island had vanished. There are solar panels at the
people, pressure from the media and high-
powered attorneys create added problems. This Vanish lighthouse on the island and some of them are
missing, a spokesman told AFP. A TV, a fridge, a
week, an attorney for actress Paz de la Huerta washing machine, an anime poster and blankets were
threatened protests if New York prosecutors also missing from a shelter facility for local fishermen,
failed to pursue her rape accusation against according to state channel NHK. AFP
Weinstein. AP
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16 Companies: Pursuit of Profit THE ECONOMIC TIMES | NEW DELHI / GURGAON | TUESDAY | 5 DECEMBER 2017

Allow 90-Day Testing Window for New Cos: Trai


ling of any subscribers during tion expressing that this practi-
Insolvency Plea
Against RCom
Indiabulls Pharma
Gets . 155 crore from
Singapores Clermont
Watchdog moots test phase. Instead, the regula-
tor suggested that the number of
test subscribers be limited to 5%
Trying to Connect ce is unfair, Trai said while is-
suing the proposals without na-
ming Jio or incumbents.
Our Bureau
Our Bureau
limits on subscriber of the carriers installed net- Trai suggests new telco can enroll subscribers DoT will now take a decision on Mumbai: Fortuna Public Rela-
work capacity in a circle. during test phase, limited to 5% of installed Trai's suggestions. tions became the fifth company Mumbai: Indiabulls Pharmaceuticals, a
numbers & duration Trai also wants the telco to in- network capacity in a circle COAI director general Rajan to file an insolvency petition one-year-old pharma venture of Indiabulls
form test users the likely date of Mathews said the network tes- against Reliance Communica- Group Companies, on Monday announced
of test period commercial launch, that they Recommends All license provisions ting rules could have been fram- tions (RCom) to recover dues that it has received `155-crore capital from
will not be allowed to port out till informing test including security and ed earlier, remarking that the In- worth `. 43 lakh. Singapore-based investment firm Cler-
Our Bureau commercial launch, and that dian market was unlikely to see The public relations company mont Group. The firm said the infusion will
user likely date lawful interception rules to
services will offered free of a lot of new operators. has filed the petition in the Mum- further boost its rapidly growing business.
New Delhi: A new mobile ope- charge but the quality of service of commercial apply during testing phase He added that the 5% limit pro- bai bench of the National Compa- The investment will bolster the companys
rator should be allowed to test may not be as good. launch, no posed for subscriber onboar- ny Law Tribunal, and the hearing ambition of becoming a leading provider of
its network for 90 days, which co- The issue of network testing MNP, free New telco to inform ding during the test phase, may is scheduled for December 19. healthcare products and services in India
uld be extended by the telecom had come into focus in the lead service but DoT and Trai 15 be on the higher side. Many companies have filed in- and be amongst the top 10 players in the co-
department on a case-to-case ba- up to Jios commercial launch quality may days before enrolling test Analysts said the move is in the solvency petitions against the ming decade. At Indiabulls Pharmaceuti-
sis, by enrolling a limited num- last year, when incumbents ac- right direction and that the go- Anil Ambani-owned company af- cals, we want to reshape the Indian pharma-
not be optimal subscribers
ber of subscribers, the telecom cused Jio of running full-fled- vernment should monitor emer- ter its plans to merge with Aircel ceutical industry landscape by providing
regulator has suggested. ged commercial operations, ha- ging technologies and situa- went off course two months ago. next generation therapies to patients at af-
In its recommendations to the ving enrolled around 1.5 million re commercial launch, or clarity on a very large scale and enrol- tions to make policies before the Swedish telecom equipment ma- fordable prices. We aspire to be a patient and
telecom department (DoT) on users under the guise of net- on the acquisition of subscri- led substantial number of sub- events. This is a step in the ker Ericsson is fighting RCom to physician centric, innovative, best-in-class
the contentious issue of net- work testing, even as the new bers in the test phase, and till da- scribers as test subscribers befo- right direction, perhaps from recover dues worth .1,150 crore. pharmaceutical company, said Nikhil Cha-
work testing, Telecom Regulato- entrant denied any wrongdoing. te there was no need for specify- re commercial launch of its ser- experience. It would be better if Manipal Technologies, meanwhi- ri, CEO of Indiabulls Pharmaceuticals.
ry Authority of India (Trai) on Trai said the present licence ing the rules. vices. Some incumbent opera- we are proactive and not reacti- le, has approached the National The Indiabulls Group has businesses span-
Monday rejected views of older norms do not prescribe any time However, in 2016, a telco carri- tors filed representations ve after the event, said Hemant Company Law Appellate Tribu- ning housing finance, consumer finance, re-
operators that opposed enrol- period for network testing befo- ed out testing of its LTE network through their industry associa- Joshi, partner at Deloitte. nal to recover `. 2.74 crore. al estate and pharmaceuticals.
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WWW.ECONOMICTIMES.COM
Companies: Pursuit of Profit  17

ONGC Partners in 6 Pre-NELP Blocks


ONGC Ex-Boss Sarraf to Head Oil Regulatory Board
New Delhi: After keeping the table company on September
post vacant for more than two 30, was appointed to head the
years, the government has fi- PNGRB by the Appointments
nally appointed Dinesh K Sar- Committee of the Cabinet, an

may Have to Share Cess, Royalty Load raf, former CMD of ONGC, as
the new chairman of the Pet-
roleum and Natural Gas Regu-
latory Board (PNGRB).
Sarraf, 60, who retired as cha-
official order said. He replaces
S Krishnan, who demitted of-
fice in August 2015. ACC also
appointed S Rath, former di-
rector (exploration) of OIL as
NO LONGER BEAST OF BURDEN Once the oil ministry proposal gets Cabinet nod, the state-run cos partners Vedanta, Essar Oil, irman of Indias most profi- member of PNGRB. PTI
GSPC, Focus Energy, Hindustan Oil and UKs Hardy Oil would also have to pay up state levies in proportion to their stakes
ring between the government and
Sanjeev.Choudhary
@timesgroup.com All Charged Up The Six Blocks: contractor would be reduced by this
amount.
The pre-NELP Blocks: CB/OS-2, CB-ON/2,
CB ON/3, CB ON/7,
VIEW This will incentivise investment
New Delhi: Oil and Natural Gas They were auctioned before New in these fields and raise domestic
CY OS90/1 (PY 3),
Corporations partners in six pre-
NELP blocks will have to share roy-
Exploration Licensing Policy (NELP)
was launched 2 decades ago
RJ ON/6
They are located
Fix Legacy production, said an official.
DGH had earlier observed that the
alty, cess and other government liability to pay cess and royalty by
charges with the state firm in pro-
NELP mandated proportionate
sharing of govt charges by all
mainly in Gujarat &
Rajasthan
Woes ONGC on the entire production ma-
portion to their stakes, ending the The move makes perfect kes the block economically unviable
contractors of a block
current practice of ONGC alone be- for the company.
aring state levies for entire produc- What the Oil Cos that will have to
sense. The government As a result of this,
tion, according to an oil ministry Ministry share the burden: needs to promptly resolve it has been observed
proposal that would soon be sent to proposal says: Vedanta, Essar Oil, such legacy issues. Private that the licensee
the Cabinet. Partners will have GSPC, Focus Energy, (ONGC) has no in-
Once the proposal gets the Cabi-
partners must meet their centive for encoura-
to share royalty, Hindustan Oil and
nets nod, Vedanta, Essar Oil, GSPC, UKs Hardy Oil share of royalty and cess, ging further explo-
cess & other govt
Focus Energy, Hindustan Oil, and charges with ONGC which are really operational ration and produc-
UKs Hardy Oil would have to bear in proportion expenses for oil-field opera- tion activities in
the burden of government charges to their such blocks, it said.
in their respective fields where they tions. In parallel, ONGC DGH had recom-
stakes
partner with ONGC. needs to better allocate mended sharing of
The Directorate General of Hyd- resources for revamp and government char-
rocarbons (DGH) had recently re- The prolific Barmer block (RJ- they were auctioned before the ges by joint venture
investment in its joint-
commended ONGC exit the cont- ON-90/1) too had the same royalty NELP, or New Exploration Licen- partners.
ract and let other partners share and cess sharing rule earlier, but sing Policy, was launched about two venture producing blocks, to In such an event,
the government charges in propor- about six years back Vedanta, while decades ago, which mandated pro- improve throughput and the government will
tion to their stakes in these six purchasing the field from Cairn portionate sharing of government realisations. In tandem, we agree to allow the re-
blocks. But the government didnt Energy, agreed to share with ONGC charges by all contractors of a block. covery of such pay-
accept the DGH proposal of remo- the liability of paying government The oil ministry is now planning to need improved oversight ments as contract
ving ONGC from the blocks while charges. Vedanta is the operator of extend the model adopted in Barmer and regulation in the upstre- costs. ONGC will ex-
taking its recommendation of allo- the field with 70% participating in- to other six blocks. Besides payment am oil sector, so that theres it the contract and
wing shared liability. terest in the Barmer block. In other of government charges by all part- requisite investors comfort all the remaining
These six blocksCB/OS-2, CB- six pre-NELP blocks too, partners ners, the government is also propo- constituents of cont-
ON/2, CB-ON/3, CB-ON/7, CY- operate fields with ONGC owning sing to make these payments recove- to step-up funds flow. ractor will become
OS90/1 (PY3), RJ-ON/6are located only minority interest. These are rable as costs, an official said. This licensee, the DGH
mainly in Gujarat and Rajasthan. called pre-NELP blocks because means the profit available for sha- had recommended.

To Revive Projects, Gas-Based Power


Cos Seek Subsidised NatGas Imports
Units with 14,000 MW capacity stranded, have debt of `. 48,000 crore
tural gas, reduction of pipeline ta- held a meeting with senior power
Our Bureau riff charges, marketing margin, ministry officials last month. The
regasification charges and power meeting, however, ended without
New Delhi: Gas-based power pro- transmission charges. any conclusion due to high electri-
ducers have asked the government They have also demanded reser- city tariffs from these power
to revive the projects by reintrodu- ving unallocated 5.45 mmscmd of plants, a government official said.
cing an earlier scheme to supply ONGC gas in the KG Basin for the Reintroduction of e-RLNG sche-
subsidised imported natural gas. power sector and reallocation of at me will provide transitory support
The 25,000 MW gas-based domes- least 10 mmscmd gas to stranded po- and help this stranded gas capacity
tic plants, of which over 14,000 MW wer plants from the 13 mmscmd of to service their interest, thereby
are stranded, have a debt of more APM gas currently supplied to non- saving them from becoming NPAs
than `. 48,000 crore either declared core sectors such as refineries and and being mothballed , Associa-
as bad loans or undergoing rest- petrochemicals, steel and other in- tion of Power Producers director
ructuring. dustries. At present, domestic gas general Ashok Khurana said.
Power producers have demanded is supplied to the priority sectors The scheme for importing spot re-
reintroduction of the scheme like fertiliser units, city gas distri- gasified LNG was started in 2015-16
along with other tax benefits inclu- bution and the power sector. for stranded gas-based power
ding waiver of taxes by central and Private power producers repre- plants and plants receiving inade-
state governments on imported na- senting gas-based power plants quate domestic supply of the fuel.

EXTRADITION TRIAL BEGINS


Mallya has Case of
Fraud to Answer,
UK Court Told
Press Trust of India

London: The extradition trial of Vijay Mallya,


wanted in India on charges of `. 9,000-crore
fraud and money laundering, began on Mon-
day at a UK court here, with the prosecution as-
serting that the embattled liquor baron had a
case of fraud to answer.
The trial, however, was briefly halted as the
courtroom had to be evacuated due to a fire
alarm. The 61-year-old tycoon and others wai-
ted outside the Westminster magistrates court
during the fire drill. The trial began with the
Crown Prosecution Service (CPS), arguing on
behalf of the Indian government, presenting
its opening arguments in the case which focus-
sed on loans totalling around `. 2,000 crore so-
ught by the erstwhile Kingfisher Airlines from
a consortium of Indian banks.
The CPS admitted that there may have been
irregularities in the internal processes of
the banks sanctioning some of those loans but
that would be a question to be dealt with at a la-
ter stage in India. The focus of our case will be
on his (Mallyas) conduct and how he misled
the bank and misused the proceeds, said CPS
barrister Mark Summers.
He then went on to lay out a detailed chronolo-
gy of events, with specific focus on a loan so-
ught by Kingfisher Airlines from IDBI bank in
November 2009.

HC Quashes Rel Infra


Proposal to Hike
Mumbai Metro Fares
Our Bureau

Mumbai: The Bombay High Court on Monday


quashed a proposal to increase fares of Mum-
bai Metro run by Reliance Infrastructures
arm Mumbai Metro One Private Limited
(MMOPL). We are studying the detailed order
and based on same, we shall take appropriate
legal recourse, a MMOPL spokesperson said.
MMOPL had said in its plea that the increase
in fare was necessary to absorb the escalation
of project costs. The company
said it is bleeding financially
Co said it is and was suffering a loss of `. 90
suffering a lakh every day of its operations.
loss of A division bench comprising
. 90 lakh Chief Justice Manjula Chellur
every day and Justice Mahesh Sonak dis-
missed a report of Fare Fixation
Committee as well as the proposal by MMOPL
to increase rates, citing it as defective, a PTI
report said. The FFC had allowed a price band
of `. 10 to `. 110 for the Mumbai Metro in July 2015.
The bench was hearing petitions against the
increase by the Mumbai Metropolitan Region
Development Authority and Congress leader
Sanjay Nirupam. A company source said the
project had in the last three years suffered a
loss of `. 1,000 crore.
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20 Deep Dive Corporate/Electric Vehicles THE ECONOMIC TIMES | NEW DELHI / GURGAON | TUESDAY | 5 DECEMBER 2017

A Sterling Partnership
Unconditional warmth has endured across four Sterling and Wilson
Current
turnover
Sterling and
Wilson Group
generations of Daruvala and Mistry families in their managing director
Khurshed Daruvala
2016-17 (in `crore)
MEP & Data Centre
Turnover
1997 6
1,950
90-year-old engineering venture together with mother Zarine, Transmission &
2005 117
2010 1,082
Development, 51% held by Shapur and chairperson, and Distribution 223
Satish John 2015 2,564
49% by Yazdi. They started with devel- daughter Delna, Renewables 3,165

O
opment of Sterling Seaface, but the busi- 2016 5,131
wned by two Parsi business ness was mired in litigation on the back whos in training Gas, bio and waste
to energy 263 2017 6,246
families, with its fourth gen- of Coastal Regulation Zone laws. 2018 (projected)
DG sets 645 10,000
eration just being inducted, the The Daruvala family, who were of more
storied Sterling and Wilson is modest means, lost considerable money in Total 6,246 (in `crore)
now at an inflection point. the venture but the Mistrys took the losses
The 90-year-old engineering into their books. Legend has it, they did Headcount
firm has only two shareholders. The Mistry not ask for a increase in stake. 2014-15 2015-16 2016-17 2017*
family of the Shapoorji Pallonji group holds Such gestures continued across gen- 3,842 4,912 6,530 7,670
67%, while the Daruvala family led by man- erations. The Mistry family again pro- *current
aging director Khurshed owns 33%. The vided an interest-free loan in 2002, when
company has been managed by the Daruvala Khursheds siblings wanted to sell their Sterling and Wilson has an employee
family through several troughs and crests, stake. Khurshed paid up in four years. base of more than 15 nationalities
with 48-year-old Khurshed leading it for al-
most two decades and to its recent success. FUTURE BECKONS Currently has physical presence in
The Daruvalas the Mistrys lend sup- But the future is still more compelling. more than 25 countries
port have painstakingly done the heavy Sterling and Wilsons growth engine is
lifting to get on the fast track. clearly its solar engineering, procure- dont have to worry about one quarter, two
ment and construction (EPC) business, or three quarters, or even a year.
GENESIS started in 2011. It will contribute 65-70% Their (SP Groups) style of operations is
The families association dates back to of the groups turnover in 2017-18. fantastic. Whatever support you need, you
1927, when Meherwan Daruwala founded We are Indias largest solar EPC con- get. There is zero interference, he avers.
Wilson Electric Works, a small contractor tractor for three years now. Globally too, For 45 years, the Daruvalas have run the
in Meadows Street, Mumbai. Across the outside the US and China, the company is company independently, from a manage-
street, another Parsi businessman, the biggest in this business, Khurshed ment perspective. The combination is
Shapoorji Pallonji Mistry Sr of the epon- told ET. The companys flagship project fantastic for us. It is very rare, he says.
ymously-named construction firm was this year is the largest solar EPC contract While Sterling and Wilson has expanded
laying the foundation for his family busi- in Abu Dhabi 1.1 GW. dramatically, parent SP Group has also
ness and Bombays heritage structures. Khurshed has steered Sterling and grown, he says. It helps us become a large
Folklore has it that a faulty appliance Wilson by diversifying geographically. international EPC player and helps us
people say Mistrys domestic iron With its subsidiaries, it clocked a turno- take long-term strategic decisions.
was repaired, much to his satisfaction, ver of `6,000 crore in 2016-17 and is cruis- A person tracking the company closely
by Daruwala and with it evolved a long- ing to finish 2017-18 with a topline of says Sterling and Wilson has benefited im-
lasting friendship between the two. `10,000 crore, Daruvala told ET. His head- mensely from the SP Group. They (SP)
Their sons, Yazdi Daruvala and Pallonji quarters in the glass-fronted Universal have a global presence, which also helps
Mistry, only strengthened this bond. Majestic is abuzz with foreign delegates, leverage Sterling Wilson quickly. So when
Pallonji understood the importance of expansion and refurbishing. Khurshed we move to various markets in the Middle
having an electrical contractor as part- reveals an internal target doubling the East and Africa, SP which has a presence
turnover to `20,000 crore by March 2020. is there to support.
Their (SP Groups) For a self-confessed go-karting buff, With Sterling and Wilson being a global
Khurshed is a conservative at heart. He EPC company from India, SP Group can
style of operations is is careful of taking the debt route `600 leverage its strengths as well as vice versa.
fantastic. Whatever support crore on the books to grow and plans to From 2008 to 2010-12, when the market
be debt free by March 2018. crashed, we lost more then we made in
you need, you get. There is Khurshed reminisces how revenues the last decade or two, says Khurshed,
zero interference (Ours) is stood at `7 crore in 1997-98. The big expan- candid about unstinting support from the
sion began in 2002 when the company set Mistrys during the bad years. The pro-
a very rare combination up offices in the Indian metros, diversify- file has changed dramatically from FY15
KHURSHED DARUVALA ing into air-conditioning, plumbing and to FY17. I think weve seen the worst that
MD, STERLING AND WILSON fire-fighting to grow organically. It had could happen to Sterling and Wilson and
earned a name in electrical contracting right now, were in our purple patch.
ner for his civil contracting business and and by 2006-07, it took the inorganic route. An SP Group executive later agrees,
acquired 51% in Wilson Electricals. Thus Contracting business is really a peo- saying,The future is much brighter be-
the name Sterling, a Mistry investment ples business, says Daruvala, indicating cause of the new energy segment that the
firm, was added as a prefix. that acquiring businesses in the sector is group has entered. Its super exciting to be
Their partnership saw them win pres- fraught with integration challenges. He Sterling and Wilson at this point in time.
tigious contracts for building Taj Mahal prefers smaller-sized acquisitions.
Hotel and World Trade Centre at Cuffe He acquired sub-station business PSC ANOTHER GENERATION
Parade. The Daruwalas did electrical con- Engineers in 2009, where the promoter, Still, the promoters keep a low profile.
tracting work for all SP Group projects. a former executive of Crompton Greaves, The Mistry family itself has been a si-
Yazdi took over reins in 1973 and enlisted wanted to retire after ensuring the com- lent partner and until last year, did not
wife Zarine, mother of his three children, pany is in safe hands. PSC had a revenue even have a member on the board. Shapur
to help out with the book-keeping. Family of `20 crore, which ratcheted up to a turno- Mistrys son Pallon joined the Sterling and
ties were close and Pallonji, amused by his ver of `600 crore in 2016-17. Wilson board only last year. Khursheds
friends decision, is said to have sent an Sterling took up more commercial and daughter Delna has joined the company
accountant from SP Group to teach her the industrial contracts, as residential pro- some four months ago, apprenticing under
basics daily till she mastered it. jects were time-consuming. In 2007-08, it her father. She plans to train for two years
Zarine now chairs Sterling and Wilson. had mechanical, electrical and plumbing look at. On the financial side, we are doing Exchange in Chennai and for NSDL in of transmission work to be done. Sterling before she pursues an MBA in the US.
During the same halcyon days of the contracts from 20 hotels. We do fewer ho- better than our peers. According to him, Bangalore. The company is second-largest is yet to take a call on whether the entry As the interaction draws to a close, this
early 70s, Pallonji, father of Shapur and tels now, Daruvala says. the business model he has created should Indian diesel generator set manufacturer. into contracting for transmission lines correspondent asks Khurshed about his
Cyrus, crossed the Arabian Sea to Oman not be blocking any money in the business. At Universal Majestic, an entry strat- should be organic or through acquisition. son Jehans progress in the FIA Formula
to build the Sultan Qaboos Palace. PROFIT MATRIX The decision to keep a tight leash on costs egy for energy storage solutions is being We definitely want to be a large player in 3 championship. His update comes with
Encouraged by the opportunities there, Daruvala is sure of his numbers. We and capital was after Sterlings cataclys- fine-tuned, with Khurshed not ruling out transmission in the next 4-5 years. evident pride. As Jehan gains his spurs, he
Pallonji got Yazdi to join him and bid for manage to keep capital employed very low mic spiral into the red in three consecu- even industrial and commercial battery is perhaps Indias only hope on the horizon
contracts in the Middle East, which saw in our business, he says, on how he man- tive years, 2011-13. It was the trigger to fix manufacture, if it makes sense. He bets TIES THAT STILL BIND to take on the Hamiltons, Verstappens and
the opulent Sheikhs spending millions of ages to keep his balance sheet light. We things. In 2013, we took a call for changing on renewables and energy storage to take Asked about Pallons entry on to Sterling Vettels of the Formula One championship.
petro dollars on infrastructure. Along focus on only one matrix. It is a return on the business model, he explains. You away the entire energy market in next 20 and Wilsons board and growth it is still The love for speed is in the blood, but with
with some Omani partners, the duo set capital employed (RoCE). In our organisa- wont find an organisation that will do years. It is a no-brainer. We are poised second to SP Groups construction busi- a rider. Khurshed, who introduced his son
up Voltamp Electricals (no connection tion, we live and breathe RoCE. When everything we are doing. to capitalise on this. This kind of span, no ness in terms of revenue Khurshed to go-karting at Acres Club, Chembur,
with the listed firm), and later sold out to prodded, Daruvala says RoCE is healthy, Sterling and Wilson is now entrenched direct competitor has in their portfolio. praises his partner. Thats the unique- many years ago, is careful about avoid-
the local partners. despite EPC being challenging business. as an EPC solar contractor and is eyeing Daruvala admits that the transmission ness of the Mistry-Daruvala partnership. ing downcycles in business.
In 1994, Khurshed Daruvala com- While profit margins will be in the low wind energy. It is also in the business of line business is the missing piece of the With their being only one other share- Going at top speed safely is an art that
pleted his chartered accountancy and single digits, Daruvala says capital em- setting up data centres, the most recent puzzle. All our businesses solar, gas holder apart from him, Khurshed says you gain through experience andKhurs-
joined Sterling and Wilson Property ployed is over 40%. Thats the matrix we being the disaster site for National Stock power plant et al require some amount he has the freedom to think long-term. I hed Daruvala has no dearth of that.

EVs Make Sense in India

Two-wheeler to e-Wheeler
CHARGED UP
Status & timelines for major OEMs and CO2 emission (million mt) 250
emerging cos PM Avg levels Prescribed limits
TVS Motor: Hybrid scooter scheduled category g/m3 g/m3
launch by Dec 2017; Electric scooter PM 2.5 300 60
likely by March 2018 PM 10 400 100
The big push towards Our scooter can cover 80 km from a sin- Ather Energy: S340 eScooter due in 2019,
gle charge, at a speed of 55 km and hour, first unveiled in 2016* Other Factors
zero emissions by 2030 says Jeetendra Sharma, MD, Okinawa Hero Motocorp: Target launch of Crude oil imports (mt) 183
Scooters. Soon, consumers will discover
is recharging dreams of that the running cost is cheaper and very
e-scooter in 2020 Foreign exchange ($ billion) 112
Hero Electric: Offers low speed e-2W
the electric two-wheeler comparable to a petrol two-wheeler. The
powered by lead acid batteries;
company is launching another scooter, EVs population in India:
segment. Nimble startups which gives mileage of 200 km from a sin- partnering with Bosch for LIB technology
Till now (units)
and platforms
get busy with rollouts and gle charge, he says. Rajit Arya, chief ex-
ecutive of Artem, which plans to make the Honda 2W: Global E-Scooter expected Bus 50
larger incumbents go back leap from solar to escooters by November, in 2018
says a consumer saves on per km running
to the drawing board cost. Although price-wise, it could be
Tork Motorcycles: First model of T6X Car 7,000
launched in Sept 2016
more, total cost of ownership will be low- Two
Lijee Philip er for electric two-wheelers. M&M: GenZe operational in select US 4,00,000
Wheeler
Pune-based Tork Motorcycles claims its cities; India debut expected 2019

I
f you are a millennial night owl from electric motorcycle T6X gives 85-100 km *Hero owns 30% stake eRick 6,00,000
Brooklyn like Shayne Nystrom and per hour on a single charge. Sohinder Gill, Source: Company & industry estimates, GS Research
crave that pepperoni pizza from director of the Society of Manufacturers
Grimaldis after Friday midnight, or sim- of Electric Vehicles (SMEV), says new LIB two-wheelers are catching on with Industry trend based on type of
ply forgot to pick up grocery supplies from models and falling prices of lithium ion students and small businessmen as these battery used- share of market
the nearest 7-Eleven, chances are you will batteries will not only give scale but also 1,000W portable battery vehicles are high
rely on Postmates to deliver at your door- bring down cost of ownership. speed and run for 80 km in a single charge. Lead Lithium
step. And chances are, Postmates will rely Industry experts opine a strong dealer
on Mahindras electric scooter, GenZe, to Cycles and Oreva ebike maker Ajanta mitted that a nimble adoption to disrup- FLIPPING THAT SWITCH and service network can make a dent in 84% 71%
get everything to you within the hour. Group are kickstarting plans or advancing tion is often not the strength of large cor- The past eight years saw 4,50,000 electric the established two-wheeler market.
Kapoorthala is as far removed from launches while major original equipment porations such as his, which is why two-wheelers sold in India, with expen- BK Vaishya, senior vice-president, 74% 55%
53%
Brooklyn as the Model X electric crosso- manufacturers (OEMs) such as TVS Motor teaming up with startups helps. We are sive lithium ion batteries being one of the Electrotherm feels the same. Having en- 66%
ver SUV is from a gas-guzzling Gran have gone back to the drawing board. looking at mobility solutions for the fu- main reasons for low volumes. (See pric- tered the ebike business in 2005, the com-
Turismo convertible but Raj Singh, the The sudden policy push has piqued con- ture. As a strategic investor, we see this as ing graphic). But analysts at Goldman pany has four models at present and more 45% 47%
towns small-time trader of agri-goods, sumer interest as well. an important step in building the ecosys- Sachs believe electric two-wheelers will are on the anvil, along with a step into the 16% 34%
26% 29%
has two slow-speed, 250W lead acid bat- In Rohtak, small-scale businessman tem needed to support commercialisation soon approach breakeven and could be electric three-wheelers.
tery-powered scooters. In his family of Kuljit Grover has acquired a lithium ion of EVs, says Rajat Bhargava, nead of quicker to switch over. Gujarat-based Ajanta also sees a 10-15% 17-18 18-19 19-20 20-21 21-22 22-23
six, Singh says, his electric vehicles (EVs) battery(LIB)-powered 1,000 W two-wheel- corporate strategy, performance transfor- Two-wheelers those mainly used for growth in the next few years from current
are very handy. The women especially are er, in his search for reliability and willing- mation & global business, Hero MotoCorp. daily commutes, clocking 8,000 km a year levels of 5,000 units a year while Ampere Lithium-ion battery price/KWh
comfortable with its easy speed while run- ness to spend a bit more. EVs and IT-enabled ride share (two- are closer to the switchover at a lithium founder Hemalatha Annamalai says it has Lithium KWh (in $)
ning errands. wheeler taxis) are going to shape the fu- cell cost of $200/kWh, when compared to been slowly scaling up capacity and plans
Its not just a fad. As two-wheelers leap- CATCHING THE IMAGINATION ture of intra-city mobility. Costs are still 10-year total cost of ownership (TCO). to make the motor and controller inhouse 300
frog from the quotidian middle class ride A lead-acid battery two-wheeler will cost high for OEMs in the EV business, but no Despite a higher initial price of more than for more price-competitive models. 276
to e-wheelers, the world is plugging into `30,000 against an LIB at `60,000. Manu- longer prohibitively so. A bullish Phokela 90% or 44% for electric and hybrid scoot- Established two-wheeler majors such as 211
248
the turbo-charged electric vehicle story. facturers say at least 10-15% of buyers are feels the cost of production of a petrol-run ers, respectively, in a price sensitive mar- HeroMoto Corp, Bajaj Auto and TVS are 179
Back home, the governments big push moving towards LIB-powered two-wheel- car and an EV will be almost the same in ket like ours, overall TCO for these vehi- also stepping off the beaten track. US-
153
towards zero emissions by 2030 is also pro- ers for performance and reliability. the next five to six years. cles is lower than that of inter nal based electric two-wheelers company
viding new stimulus to the electric two- Ravneet Phokela, chief business officer, combustion engines (ICE) scooters but GenZe, owned by M&M comes to India by 17-18 18-19 19-20 20-21 21-22 22-23
wheeler segment, even though basic is- Ather Energy, says consumers are will- FUELING ELECTRIC DREAMS slightly more than that of economy mo- 2019 and Bajaj reportedly plans to launch
sues of economics, infrastructure and ingly adapting faster to EVs. The Chennai- Startups have had to tackle issues of low torcycles that are widely perceived as the the Urbanite EV brand by 2020. TVS, the ernment support, policy frameworks, bat-
viability still need to be ironed out. based manufacturer may launch its elec- mileage, speed and performance, which cheapest mode of transportation. best poised, is working on the electric ver- tery capacity and charging infrastructure
But a diverse bunch of electric automo- tric scooter as early as next year from its they vociferously refute. Kamlesh The wheels are turning nationwide. sion of the Jupiter scooter for launch in will drive viability for an India-spec EV.
tive startups such as Ather, Artem, Bengaluru plant in three markets ini- Mallick, EV expert and founder of From metros to moffusil towns. June, next year. (See Charged Up) For two-wheelers, if 2019 is supposed to
Okinawa, Twenty Two Motors and Tork tially and is targeting sales of 10,000 PluginIndia.com, a forum for EVs and Gujarat today is the biggest market, as it With current sales of more than 17 mil- be the key, then the EV backbone for the
Motorcycles are already stepping on the units in the first year. Ather received a clean energy, adds that more domestic gives an additional subsidy of `8,000 to lion two-wheelers annually, there is poten- indigenous product development needs to
gas, or shall we say, getting recharged, an- `205-crore infusion in October 2016 by players are eyeing this as an emerging electric two-wheelers, followed by south- tial to expand the market to 5 million units happen now. With the alarming pollution
ticipating big business ahead. Even older Hero Motocorp, Indias largest two-wheel- segment. No petrol scooter can offer the ern markets of Karnataka, Tamil Nadu per year in the next four years, say indus- levels and citizens and cricketers chok-
p l aye r s s u ch a s YO by ke s m a ke r er manufacturer. Pawan Munjal, the running cost of an electric scooter. The and Maharashtra. Delhi has slipped to no. try players. Opportunities and challenges ing, its time to seriously rethink the elec-
Electrotherm, Ampere Vehicles, Avon groups MD, in an earlier interaction ad- economy cannot be matched, he says. 7 from the no. 1 spot. are and will be uniquely Indian and gov- tric vehicle.
https://t.me/TheHindu_Zone https://t.me/pdf4exams

WWW.ECONOMICTIMES.COM
Companies: Pursuit of Profit  21
India has Impacted Amazons Web Biz: CEO
pacted our business. We have had strate- and (is) welcoming of companies."
J.Vignesh@timesgroup.com gic and impactful customers. They have The conference saw Amazon AWS give
been vocal and very helpful in providing a major push to its machine learning
Las Vegas: Indian customers have play- feedback on what they would like to see and Internet of Things services innova-
ed a significant role in impacting pro- in the services. It has impacted what we tion, among a slew of other offerings.
duct decisions of Amazon Web Services, build. We have launched region India The company has launched DeepLens,
chief executive Andy Jassy said. and its off to a fantastic start," Jassy said a deep-learning enabled, fully pro-
Jassy also highlighted the role of a sup- at the AWS Re:Invent conference last we- grammable video camera. It has a HD
portive government, which is open to ek. "There is more to do. It is nice to have video camera and is capable of running
technology. a government that is excited about try- over 100 billion deep learning opera-
"India for us, in a lot of ways, has im- ing to enable that kind of technology tions per second. Jassy also announced
Amazon SageMaker, a ful-
ly managed service for de-
velopers and data scien-
tists.
(The reporter is in Las
Vegas at the invitation
of the company.)

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