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BENNETT, COLEMAN & CO. LTD. NEW DELHI / GURGAON TUESDAY, 5 DECEMBER 2017
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
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
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.
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-
15 years later: Two burnt coaches of Sabarmati Express at Godhra railway station.NIdhi Sharma
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
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
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
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.
https://t.me/TheHindu_Zone https://t.me/pdf4exams
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
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.
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
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
10 Smart Investing THE ECONOMIC TIMES | NEW DELHI / GURGAON | TUESDAY | 5 DECEMBER 2017
What
to Buy, Sell
FUND REVIEW
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\LHOGVDQGFUXGHRLOSULFHVQHDUO\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.
WWW.ECONOMICTIMES.COM
Money Matters 11
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
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-
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
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
https://t.me/TheHindu_Zone https://t.me/pdf4exams
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
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
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
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
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
https://t.me/TheHindu_Zone https://t.me/pdf4exams
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
16 Companies: Pursuit of Profit THE ECONOMIC TIMES | NEW DELHI / GURGAON | TUESDAY | 5 DECEMBER 2017
WWW.ECONOMICTIMES.COM
Companies: Pursuit of Profit 17
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.
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.
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.
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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.)