RNI No.35850/80; Reg. No. MCS-123/2018-20; Published on: Every alternate Monday; Posted at Patrika Channel Sorting office, Mumbai-400001 on every alternate Wednesday-Thursday R100

n SEMICONDUCTORS

n CP COMMUNITIES

n GR INFRAPROJECTS

April 19 to May 2, 2021 n KPIT

Airtel Sunil Bharti Mittal On a Chairman, Airtel strong wicket With price war over and a digital portfolio in place, Airtel is keen to play on the front foot again...

Business India u the magazine of the corporate world From the Publisher

Publisher Ashok H. Advani

Executive Editors Lancelot Joseph, Daksesh Parikh, Sarosh Bana, Deputy Editors Shonali Shivdasani (Mumbai), Sajal Bose (Kolkata) Consulting Editors Dr. Shashank Shah, Sunil Damania (Mumbai), Sekhar Seshan (Pune) Assistant Editors Arbind Gupta, Ryan Rodrigues, Kayus Wadia (Mumbai), Yeshi Seli (Delhi) Sunil Mittal and Airtel is a story of grit and resilience. Principal Correspondent Krishna Kumar C.N. (Mumbai) Photo Editor Palashranjan Bhaumick Many of our readers will recall that Sunil Mittal was Business India’s Photographers Prakash Jadhav, Sanjay Borade Businessman of the Year, as far back as 2002. As Sunil has often said, this Design Trilokesh Mukherjee Art Director Mukesh Pandya was the first major recognition by a national magazine. Many awards and Graphics Prajakta Sawant accolades followed as Airtel became the largest player in India. Cartoonist Panju Ganguli Manager – Design Cell Mathew Thomas Sunil, who won the Delhi licence, was one among the first 8 licensees, Production Team Balachandran, Kisan Kumbhar, Najeeb Fatehi, Sudhir Khaladkar, Vasant Dhasade with 2 licences being granted for the four major metros in November 1994. Interestingly he is the only one amongst the original licensees to have Sr. Vice President – Advertising Sales Mira Lawrence (Mumbai) Asst. Vice President – Advertising Sales B. Anand (Hyderabad) survived to date (though Vodafone’s licence dates back to the same time, General Managers – Advertising Sales Deepak S. Ahire, Shahnoor but under different ownership then). Starting from virtually scratch, with Mistry, Naresh Purohit, Pankaj Bhasin (Delhi) Sumati Rekhi (Chennai), a small business background and roping in the GSM experience (a licence Salman Khalil (Lucknow) precondition) of a tiny player from Mauritius, Sunil saw off competition from Asst. General Manager – Advertising Sales Support Bridget Mascarenhas Asst. General Manager Advertising Sales Aasif Iqubal (Delhi) several major business houses including Tatas, Birla and RP Goenka, public Branch Manager P.L. Baluja (Kolkata) sector BSNL and Reliance, then under undivided Mukesh and Anil Ambani. Sr. Manager-Sales & Distribution S.S. Kannan (Chennai) 28353964 Several of them had tie ups with major foreign companies. Sunil himself, in Editorial & Administration Office: Nirmal, 14th floor, Nariman Point, good time, roped in Singapore giant, Singtel, but keeping majority control Mumbai 400021. Tel: 22852943 Fax: 22883940 with the Mittal family. Email: [email protected] Marketing and Advertising: Nirmal, 14th floor, Nariman Point, Having built the largest and most successful telecom company, remaining Mumbai 400021. Tel: 22883938-46 Fax: 22883940 Email: [email protected]. on top was not easy. At the peak he acquired Africa’s second largest telecom Circulation/ Subscription: Mittal Chambers, Office No.94, 9th Floor, group, Zain, at a price many felt was overpaying. And several analysts felt that Above Yes Bank, Nariman Point, Mumbai 400021. Tel: 22820619/22820348 it could seriously damage the group. But more recently having turned the E-mail: [email protected] group around and successfully listing it in London, the price was vindicated Bangalore: 27 Wellington Street, Richmond Town, Bangalore 560 025, and the cash flows have been of enormous help. Tel: 080-22102444, Telefax: 080-22102446

Kolkata: Krishna Villa, 100 Park Street, Kolkata 700017. Tel: 22893359 Telefax: 22878455 And then came the epic battle with a newly invigorated Mukesh Ambani who Delhi: 268 Masjid Moth, Uday Park, New Delhi 110049, decided to storm the telecom market and build Jio into the largest telecom Tel: 011-41643052 / 41643050 / 41640109 / 41086415 company almost at any cost and taking no prisoners on the way. Many other Hyderabad: Pent House II, Usha Deluxe Apartments, Motilal Nehru Nagar, telecom players fell by the wayside, including Tatas, and also RCom, run Begumpet, Hyderabad 500016 Telefax: 040-66490099 by brother Anil. Kumar Mangalam Birla’s enormously successful Idea was Chennai: Prasad Chambers, III Floor, virtually forced into a marriage with Vodafone. And speculation was rife as to Flat No. 14, Door No. 97A, Peters Road, Gopalapuram ,Chennai 600 086. Tel: 044 28351703 / 28353964 / 28353394 when Sunil would fold his hand, or sell out to Singtel, with its deep pockets to Kochi: DRA-6, Mahila Samajam Nursery Road, Chaliakkavattom, match Mukesh Ambani’s. Dhanya Junction, Vennala P.O. Kochi 682028. M: 9846091797 Lucknow: Sunshine House, 9/11 (M.N.H.S), Sector 9, Vikas Nagar, Apart from the stiff competition, the Supreme Court ruling on AGR almost Lucknow-226022 Tel : 0522-6565222/ M: 09415180290. two years ago, was a death blow to several companies. Sadly, the Government Registered Office: Nirmal, 14th Floor, Nariman Point, Mumbai 400 021. did not intervene, by using, if necessary, its retrospective legislative powers, to Tel: 22883938/47 Fax: 22883940 correct what was a wrong judgement in the eyes of many senior jurists. Annual Subscription Rates India R2,210 Students (India only) R1,300 for 1 year on submission of But after fighting doggedly for almost three years, Airtel is a healthy current year’s ID card. and strong competitor to Jio. Though smaller on some counts than Jio, Overseas (One year only) Airmail to Pakistan R9,400 or US$142. (particularly on subscriber volume), it stands shoulder to shoulder, Airtel is To all other countries R13,200 or US$240 clearly a long-term competitor to Jio. Speculation is rife about Vodafone Idea Rates include airmail charges. (compounded by the AGR ruling). Of course, whether the telecom sector Please add R20 for cheques not drawn on a Mumbai bank. should have only two players is another issue, for another time. In this time’s Cheques to be drawn in favour of “Business India Publications Ltd”. cover story, Ritwik Sinha looks at the Airtel of today. There are many major Unsolicited manuscripts will not be returned. challenges ahead for the whole sector, including the coming 5G wave. India Distribution India Book House Ltd cannot afford to be left behind. Newsstand R100 This issue consists of total 68 pages including cover It is clear that Airtel is as strong as ever. It has emerged as a major global player in telecom. And Sunil Mittal and Airtel show the best there is in Indian business.

We Are On www.businessindiagroup.com

u 3 u april 19-may 2, 2021 Contents Business India u the magazine of the corporate world • No. 1098

COVER FEATURE 20 On a strong wicket With price war over and a digital portfolio in place, Airtel is keen to play on the front foot again

RNI No.35850/80; Reg. No. MCS-123/2018-20; Published on: Every alternate Monday; Posted at Patrika Channel Sorting office, Mumbai-400001 on every alternate Wednesday-Thursday R100

n SEMICONDUCTORS

n CP COMMUNITIES

n GR INFRAPROJECTS

April 19 to May 2, 2021 n KPIT

Airtel Sunil Bharti Mittal On a Chairman, Airtel strong wicket With price war over and a digital portfolio in place, Airtel is keen to play on the front foot again...

u CORPORATE REPORTS u

RUPA & CO 42 COLUMBIA PACIFIC COMMUNITIES 34 Hosiery major Rupa firms up position in the market Columbia Pacific Communities is all geared up to explore India’s senior living space GR INFRAPROJECTS 45

KPIT 38 A software company signals return to the growth GR Infraprojects comes out as an EPC company with road, chalking up impressive results on the home quality, speed and sincerity stretch of 2020-21

u 4 u april 19-may 2, 2021 No. 1098 • Business India u the magazine of the corporate world Contents

u SPECIAL REPORT u u u IN THIS ISSUE The hunt for semiconductors 28 Books 60 India now understands that being dependent on global supply chains for something as Business Notes 12 critical as chips is not wise Businessmen in the News 10

Columns 16,27,33

Corporate Reports 34

Cover Feature 18

CSR 53

Editorials 6

Entertainment 57 u Technology 50 u CSR 53 u Hospitality 56 From the Publisher 3

Guest Columns 41,49

Hospitality 56

Fractal Analytics positions LT Foods’ sustainability Signum Hotels announces Interview 66 itself strongly in the fast- initiatives help conserve major investments growing AI space millions of litres of water Listening Post 9 u Entertainment 57 u Marketing 52 u Talking To 54 J.D. Majethia relaunches ‘Wagle ki duniya’ in a Marketing 52 new avatar Panju’s Page 17 u Portfolio Talk 58

People 64

Portfolio Talk 58 Murari Lal Jalan, lead member, Jalan Kalrock Consortium (JKC), the new Selections 63 Whisky brand Glenmorangie owners of Jet Airways, speaks Amitabh Verma, partner, approaches Indian consumers about how they are optimistic Fission Wealth Services Special Report 28 via a new campaign of getting an NCLT clearance says, committed client base during the course of this without any attrition is the month key contributor for growth Talking To 54

u Covid-19 cases Editorials 6 Technology 50 • Can India maintain the momentum in exports • Companies come out to sponsor vaccinations in the new fiscal, which has just begun? for their employees • People think they are safe so long as they u Issue No. 1098 for the fortnight April 19-May 2, 2021. are not hit, but no one can really ensure they Interview 66 Released on April 19, 2021 are safe The real estate sector is • The need for capital buffers favours banks passing through one of its Printed and published by Ashok H. Advani for Business India. Printed at Usha Offset Printers (P) Ltd., 125, Govt. Indl. Estates, that can scale locally most difficult times, says Kandivili (W), Mumbai. Harsh Vardhan Patodia, Published at Business India, Wadia Building, 17/19 Dalal Street, u Business Notes 12 president, CREDAI National. Mumbai-400 001. In conversation with Arbind No reproduction is permitted in whole or part without • Sugar exports are on course to utilise the the express consent of Business India announced quota Gupta, he enumerates the To order reprints contact: Business India Production Cell, • The domestic realty market turns cautious challenges and the measures 14th floor, Nirmal Building, Nariman Point, amid growing fears of a spike in required to handle this scenario Mumbai-400 021. Tel: 2288 3942/43, 2204 5446

u 5 u april 19-may 2, 2021 Editorials Business India u the magazine of the corporate world On a positive note

Can India maintain the momentum in exports in the new fiscal,?

ith the Corona-led disruption bring- by over 18 per cent when the global average ing exim trade to a screeching halt in pharma exports had dipped in the negative Wduring the first quarter in 2019-20, fol- zone. In a micro sense, some interesting trends lowed by a slow pick-up during July-September, were noticed in pharma exports – there have the final year figure especially on the exports been sharp jumps in shipments to Canada, Mex- front hasn’t really come as a shocker. It could ico, South Africa and other African countries, rather be called a pleasant surprise. where the cumulative surge has been 12-13 per At $290 billion for the entire year, it is just -7 cent. Also, the troubled year seems to have fur- per cent lower than the previous fiscal figure of ther consolidated India’s growing reputation as $313 billion. Going by the official statistics, in an emerging pharma exports hub. the concluding months or the last quarter of Considering the anti-China sentiment, which the fiscal, there was an unprecedented jump in was witnessed in the international market, fol- shipments from the country. In fact, in March, lowing the spread of the pandemic last year, a it shot up by a huge 60 per cent on the month- common belief was that India would benefit to-month comparison metrics, as it touched $34 from it in the exim trade. Countries, particularly billion against $21 billion in March in 2018-19. in the West, were supposed to make conscious The sterling performance seen in the last part moves to bring down their dependence on Chi- of 2019-20 has been broad-based, with 28 out of nese imports, if not abruptly break it. Around 30 major product exports either growing at an the middle of the last year, even the Union Com- impressive high positive growth of over 100 per merce Ministry, while perking up the Indian cent or at least ending with double-digit growth exporters’ fraternity, had strongly advised them in March. Cereals, oil meals, iron ore, jute, elec- to look at emerging gaps in international trade tronic goods, engineering goods, etc, were the and try to aggressively move in. leading product categories. At the end of the year, however, is there any Meanwhile, on an overall yearly basis, a cou- trend to suggest that the ‘emerging-as-alterna- ple of distinctive trends have emerged. Market- tive’ idea has really worked? Exporters confirm men vouch that the year has been marked by it has worked to some extent. Apart from agri- a definitive surge in agri commodities exports, commodities and pharma, the limited surge which account for less than one-fifth of the witnessed in product categories like textile country’s total exports. A modest to massive and engineering goods (which were display- jump was witnessed in several product catego- ing a flattened growth trajectory in the years ries including rice (both basmati and non-bas- before Corona) is being attributed to some mati), maize, wheat, groundnut, millet, barley, countries beginning to look at India as a via- etc. In a year which was marked by serious dis- ble alternative. ruption in agriculture production in most parts And, now, the most crucial point: with the of the world, many countries and their traders new wave of the pandemic gripping India and approached India to augment supply in this cri- many other countries, can India maintain the sis hour and the latter managed to respond to momentum in exports in the new fiscal, which their request. With agriculture turning out to has just begun? Exporters believe it is quite pos- be the best performing unit of the economy in sible because, firstly, they are flush with orders 2019-20 (declared an essential service after the and, secondly, the complete lockdown of the last imposition of national lockdown) and interna- year is unlikely to happen again. They are, how- tional shipments progressively getting restored ever, asking for clarity on the new tax incen- from the second quarter at the major ports, tive scheme – Remission of Duties and Taxes on enhanced exports of specific agri-commodi- Export Products (RoDTEP), which has replaced ties are believed to have played a crucial role in Merchandise Exports from India Scheme (MEIS) keeping the overall exports numbers close to the – to forge new contracts with international buy- $300 billion annual mark. More importantly, it ers. Creation of a dedicated Export Development may have proved to some countries that, when it Fund (a long pending demand) for brand promo- comes to seeking cereals supply in a stressed sit- tion is another major demand, which is expected uation, India could be an option to be looked at. to make a big difference when Indian export is Pharma has been another major pillar of a faring better in a tumultuous market situation. u reasonably good exports performance, growing [email protected]

u 6 u april 19-may 2, 2021 Business India u the magazine of the corporate world Editorials A case of Corona fatigue

People think they are safe so long as they are not hit

or the past two months or so, there have levels has caused a new kind of fear. While this is been widespread media reports of a sudden a useful early indicator of when to seek hospital Fsurge of corona cases all over the country, care, there is very little being done to ensure the with a special focus on some districts of Maha- quality of the gadgets. Much like the early rush rashtra, Gujarat, Delhi and Karnataka. Nowm, for ventilators, there is now a massive increase as the daily count of new cases reaches almost in demand for oxygen cylinder for home-based 250,000, a wave of panic appears to be setting in care. The expected shortage is already upon us. – both in the Central and state administrations Likewise, the desperation for remdesivir would as well as the general populace. provoke amusement, if it were not so grim. At the same time, while the state governments WhatApp groups are full of names and phone of Maharashtra and Delhi grapple with the sit- numbers of remdesivir suppliers in various cit- uation, the people in general seem to become ies. On the other hand, therapies such as steam inured to the danger they are facing each and inhalation, which have proved efficacious over every day. A colleague described it best in her long periods, are being ignored because there is Facebook post, comparing it with living in a little money to be made. This is despite the fact town under aerial bombardment. Everybody that well-qualified infectious disease special- thinks he is safe until he is actually hit. But no ists have endorsed it. Same is the case with the one can do much to ensure he is really safe! much-maligned dexamethasone tablets, which In the case of the current wave of the pan- are inexpensive and widely available. demic as well, people everywhere have become In a similar fashion, when allopathic med- accustomed to living with the idea that one day icines and vaccines appear inadequate to cope they would catch the infection any which way. with a massive pandemic of this kind, it would Hence, they keep pushing the envelope, taking be wise to look elsewhere for relief and succour. chances where they wouldn’t just a few months Particularly for patients being treated at home, ago. This is the result of Corona fatigue – the rea- a selection of traditional remedies may be insti- son people attend election rallies and the Kumbh tuted along with what the doctor prescribes. Mela in hundreds of thousands, with scant Finally there is the issue of the shortage of vac- regard for any kind of safety measures. cines. The Central government in its obsession to Ironically, the highest surge in cases is in control the entire process centralised all decision Maharashtra and Delhi, where neither elections making. In the process several mistakes have nor religious gatherings are in the offing. Here, as been made. To start with it placed too few orders in other places such as Bengaluru, night curfew with orders with the manufacturers. By contrast was imposed, though the thinking behind these the US and UK governments placed huge orders, measures defies logic.A ll kinds of memes and car- even before the final approvals came, when it toons began the rounds, saying that the Corona looked likely that the vaccines would work. Then Virus would come out on the prowl only at night the government insisted on local data to be gen- or on weekends! Humour always has a kernel of erated, instead of simply approving vaccines truth in it, however facetious it might sound. approved by the regulators in Western Coun- Now, the Mumbai Police has started issu- tries, as it belatedly did last week. This will allow ing colour-coded stickers to vehicles carrying a flood of vaccines from other manufacturers. medical supplies, food and other essentials and Moreover it insisted on a low fixed price making warned that no other vehicles would be allowed it difficult for even local manufacturers. Lastly on the streets. But, the stickers would be handed when vaccinations were started it lost valuable to the vehicle drivers at specific toll-nakas with time, restricting vaccine centres initially to only no records of which vehicle has received stick- government hospitals and clinics. Again belat- ers of which colour. These steps are supposedly edly some private hospitals have been allowed. being taken to ease the traffic jams. How this Instead mass fascination sites, just like polling would work is hard to imagine, because attempts booths, need to be set up all over the country. to enforce the rules would cause the very traffic Hopefully as epidemiologists predict, this snarls they were supposed to prevent! wave will soon peak and again decline. But the There are other issues as well. The wide pub- lessons should be learnt to ensure that we are licity given to blood oxygen levels and the surge ready for the third wave. u in sales of hand-held instruments to measure the [email protected]

u 7 u april 19-may 2, 2021 Editorials Business India u the magazine of the corporate world Global banking is history

The need for capital buffers favours banks that can scale locally

ast week, American banking major Citi Bank of Mauritius. DBS India took a bold bet, announced that it would exit from con- when it went a step further and acquired Lsumer banking in 13 key markets across Laxmi Vilas Bank. Almost all other foreign the globe, allowing it to focus on four ‘wealth’ banks in India have shrunk their retail books, centres outside the US – Singapore, Hong for want of capital. Some like Barclays and Kong, the UAE and London. It would thus sell ABN AMRO burnt their fingers in the market. ‘excellent’ businesses in places like Australia, French bank BNP Paribas, which once consid- China, India, Indonesia and Russia, where it ered setting up a wholly-owned subsidiary, does ‘not have the scale to compete’. Its cap- has backed out. ital, investment and resources will hence- Perhaps the biggest change in retail bank- forth concentrate on wealth management ing is open banking, across much of Europe and institutional businesses in these regions. and now India. One of the strongest arms In India, Citi has been around since 1902, in a bank’s arsenal is data related to its cus- though the first cheque was only written in tomer spends. This information helps the 1938. The real thrust into consumer lending bank identify a good borrower or a potential came only in 1985, with a focus on non-resi- defaulter, and thus price risk and offer prod- dent Indian deposits and automobile loans. It ucts accordingly. was a pioneer in the cheque imaging business, But in Europe, a customer may now choose and brought the first ATM and credit card to share banking history with another finan- to India. It was also among the first to cre- cier, in the hope of qualifying for a cheaper ate small ticket, unsecured personal loans as loan. Indeed, the EU regulator is pushing well as, at one point, the standard in strong- banks in this direction. And this initiative is arm tactics to recover them. It was also an customer friendly. early investor in HDFC Bank, with an unwrit- In India, the RBI has done no such thing. ten intention to acquire, but later sold out But through UPI, several non-banking partici- instead. That one of the oldest and largest for- pants already have access to some of this data. eign banks in India now says it is ready to sell By blending it with other analytical data, like its consumer banking unit, almost half its social media postings, new software start-ups business, is a sign of how much banking has are able to offer customer services that are changed. similar to that of banks: from loans to trad- The advent of products that were cleared at ing and advisory. Such loans can at times be the centre rather than at the branch, helped priced even lower than what the bank, with a banks assess risk in a uniform manner. It has- poorer assessment of risk, has to offer. tened loan clearance processes and expanded Indian banks with scale will be able to the retail market. But that same market is now compete in such a market, but the scope of shrinking in several regions across the globe, expansion for a smaller bank is limited. But and has upset the equation. where does that leave the foreign banks? By Banking also remains capital-intensive giving up access to consumer banking, a for- with money as raw material as well as prod- eign bank will limit its access to rupee depos- uct. It is gathered in the form of deposits and its – except for the chunky bits it gathers rented out as loans to borrowers. In India, the through wealth management. That would RBI made it compulsory for foreign banks to limit a bank’s business to overseas markets, ring-fence their local operations from global and to Indian companies that plan to expand shocks and turbulences if they had plans to to those places. It could service trade and help grow to any meaningful size in the domestic companies from the home country expand market. This is a trend that has picked up with into India too. other countries following similar practices. In Pandering to wealth, however, will be a step the US, Citi failed its first stress test because back in banking history. Indeed, the last 40 the regulator discounted its overseas opera- years of Indian banking have been focussed tions entirely. on financial inclusion, and away and against Since the RBI notification, only two for- the limitations of private banking. The wheel eign banks in India have opened wholly- has come full circle for foreign banks. u owned subsidiaries: Singapore’s DBS and State [email protected]

u 8 u april 19-may 2, 2021 Business India u the magazine of the corporate world Listening Post

platform solutions. Coforge will ini- of AC production capacity. Another Partnership for tially acquire 60 per cent stake in SLK 400,000 units of AC production capac- expansion Global, with SLK Global’s founders ity will be added in Mohali by 2025. completely exiting. Fifth Third Bank’s The backward integrated manufac- Bengaluru-based RMZ Corp and Can- stake in the company will be reduced turing unit will equip the brand with ada Pension Plan Investment Board to 40 per cent and will continue at greater agility and flexibility in terms have formed a joint venture to develop that level for two years. Coforge will of its offerings – both features and aes- and hold commercial office space acquire an additional 20 per cent stake thetics – enabling it to respond faster in Chennai and Hyderabad. The JV, from Fifth Third Bank in two years. to changing consumer needs. where the Canadian fund is investing $210 million, will develop three pre- mium commercial projects – two in Small is beautiful Changing dynamics Hyderabad and one in Chennai – with Piramal Retail Finance, a business The mid-capped Kolkata-based Bal- a total development potential of about entity under Piramal Capital & Hous- rampur Chini Mills Ltd (BCML) is the 10.4 million sq ft, even as 7.5 million ing Finance, a subsidiary of Pira- biggest and one of the most efficient sq ft is already under active develop- mal Enterprises, has launched its sugar companies in India that has ment. Last year, RMZ sold 12.8 mil- expanded multiproduct retail financ- turnaround. The stock has recently lion sq ft of its office assets to a fund ing platform. Focussed on small and crossed the R200 levels. The company managed by Brookfield Asset Manage- mid-town India, the company offers is believed to talking to neighbouring ment Inc for $2 billion, in one of the new and expanding product offerings countries that are facing a sugar short- largest real estate deals in the country. to meet various financing needs. Over age are likely to buy it from India and As part of the transaction to reduce the last quarter, Piramal has launched are negotiating with the company. The debt, it also sold its co-working busi- digital purchase finance and used-car deal is expected to take place in the ness ‘CoWrks’ to Brookfield. RMZ had financing solutions. Further powering coming month. Meanwhile the capac- partnered with long-term institu- this expansion, Piramal is entering ity expansion in the distillery seg- tional investors in the past as well. In into partnerships with various parti- ment has resulted in strong earnings 2013, Qatar Investment Authority had cipants in the tech.ecosystem. Piramal growth and stable cash flow genera- invested $300 million in RMZ; also, has also gone live with two fintech tion. This would result in complete de- in 2019, it formed a partnership with partnerships – ZestMoney (purchase leveraging of balance sheet including global developer Mitsui Fudosan for $1 finance) and CARS24 (used car financ- working capital debt in the next three billion to jointly develop assets in the ing). With its ‘digital at its core’ strat- years. With the expansion of ethanol country. egy, the Piramal platform offers a dynamics, the industry is out of the quick and easy way for consumer tech usual cyclicality in the sector. companies to offer financing solutions Inorganic strategy to their customers, at scale. Coforge Ltd (formerly NIIT Technolo- Building business gies) is acquiring a controlling stake in The recently listed PSU, under the Bengaluru-based SLK Global Solutions, Ramping up Ministry of Defence, Mazgaon Docks a provider of business process man- Godrej Appliances is ramping up its Shipbuiders Ltd (MDSL) where the agement and digital solutions to the manufacturing across its product cat- Government of India holds 84.83 per financial services industry, for about egories. Following backward integra- cent is trading at R201, however it is R920 crore. The acquisition is expected tions, the company has been working making waves with new orders. Cur- to expand Coforge’s BPM operations, steadily over the years towards improv- rently, it has an order book of over strengthen its financial services busi- ing its indigenous manufacturing R50,000 crore as of 31 January 2021. ness and increase its presence in capabilities, indigenous manufactur- The company has also won order for North America. This is being funded ing capabilities, with the intention repair of two Indian Coast Guard Fast by Coforge through a combination of making nearly all its product cat- Patrol vessels namely ICGS Achook of internal accruals and external bor- egories locally. During the last seven and ICGS S B Phule. MDSL is engaged rowings. A fast-growing business years, the brand has invested over in the construction and repair of war- with a robust operating profile, LS K R1,100 crore to ramp up its manufac- ships and submarines for use by the Global has deep domain expertise in turing capacity as also R&D, demon- Indian Navy and other vessels for com- the banking and insurance segments strating its commitment to ‘Make in mercial clients. Apparently, the Indian in North America. It enjoys multi- India’. The company will invest R100 Navy has sought government approval ple long-standing and scalable rela- crore in scaling up its AC capacity for fleet expansion by 6 nuclear pow- tionships with marquee clients with across two manufacturing facilities ered attack submarines to counter the strong growth potential, including – Shirwal in Maharashtra and Moh- Chinese strength in the Indian Ocean. with Fifth Third Bank, which in addi- ali in Punjab – to expand its produc- This translates into a big business tion to being the largest customer, tion capacity of ACs to 800,000 units opportunity for MDSL which has the is also a significant minority share- by 2025. It has already inaugurated its capacity to build such vessels. u holder. It has also created a suite of Shirwal facility, adding 400,000 units [email protected]

u 9 u april 19-may 2, 2021 Businessmen in the News Business India u the magazine of the corporate world

o-founded by the husband Cand wife duo Megha and Pritesh Asher, the Coim- batore-based organic skin & personal-care brand Juicy Chemistry is planning to open 8-10 retail experien- tial stores in key metros across India to strengthen its presence in offline retail market, besides ramping up its online exports to newer geographies across the world. Currently, 95 per cent of Juicy Chemistry’s sales take place through online channels, offline stores in its key mar- Pritesh Asher, the company fter doing wonders by out of which 80 per cent comes kets – Chennai, Mumbai, Delhi, intends to use the capital for the Amaintaining a continu- from its own D2C portal, while Kolkata, Hyderabad, Bengal- rapid expansion of its thriv- ous supply chain during the the remaining revenue comes uru and Pune. Last month, the ing e-commerce platform Covid-triggered lockdown, B2B through e-commerce plat- company raised $6.3 million in and omni channel distribu- healthcare platform Biddano, forms, such as Amazon, Nykaa its Series A funding round, led tion capabilities, to reach new aims to revolutionise offline and Purplle, among others. The by Belgium-based investment and existing geographies, and pharma distribution networks company is planning to open firm Verlinvest. According to brand building efforts. u by bridging supply-chain gaps between distributors and chem- ists through technology. Bid- eading cryogenic liq- director, INOXCVA, while dano has been successful in six Luid storage, distribution talking about the MoU. cities in Maharashtra, Andhra and re-gas solutions provider “Our partnership with Mit- Pradesh and Gujarat and now I NOXCVA has announced its sui shows our innovativeness plans to expand its network to signing of a memorandum of and futuristic approach along 25 cities pan-India on the back understanding with leading with our commitment to the of growing demand for health- Japanese conglomerate Mit- country’s vision of gas-based care services. The Pune-based sui & Co (Asia Pacific) Pte economy, which is self-reli- start-up, raised about a mil- Ltd, to partner and share tech- ant in all aspects, including lion dollars in a pre-Series A nical and commercial exper- energy.” Added Kaoru Ume- round from Venture Catalysts tise for further establishment hara, divisional operating and LetsVenture in October last of a virtual pipeline to ser- officer, Mitsui: “In partner- year, plans to raise around $10 vice the growing demand of ship with INOXCVA, we look million in a Series A round over LNG in India. “Increasing the forward to exploring how we the next two months. “We are use of LNG in the progres- can play a key role in meet- and industrial clusters. We already in talks with multiple sive and evergreen domains ing India’s long-term need believe our combined exper- investors,” says Talha Shaikh, of manufacturing and trans- for cleaner energy. Together, tise will synergise well to co-founder, Biddano. “We plan port is a priority for our gov- we will carry out technical, bring the benefits of LNG at to use the funds to expand our ernment, which underlines economic and environmen- regional and national lev- network and build a commu- the benefits of LNG,” said tal evaluations for supplying els, and create a sustainable nity of 100,000+ retailers and Siddharth Jain, executive LNG to prospective customers manufacturing ecosystem.” u 5,000+ distributors, enhance our technology and infrastruc- ture, and launch new products. new Citroën C5 Aircross needs in terms of design, com- With all this in place, Biddano A SUV has been launched in fort, roominess, equipment would become India’s first and India, with a special introduc- and powertrain. Its inter- largest B2B healthcare supply tory price of R29.90 lakh. To national success and mod- chain platform”. According to make the Citroën owner- ern technology is expected IBEF.org, the total market size ship comfortable, the com- to satisfy Indian customers, of the supply chain for phar- pany is launching Citroën who deserve nothing less than maceutical products and med- Future Sure for Indian cus- a world-class product. The ical instruments including the tomers. This comprehensive Citroën C5 Aircross SUV will surgical market is pegged at package allows customers to establish our brand in India $62 billion and is growing at own a Citroën, with an easy and showcase what Citroën 13 per cent CAGR. With its AI- monthly payment of R49,999. is capable of. With this led approach, Biddano aims to The package includes main- launch, Citroën starts a new deliver healthcare products to tenance, extended warranty, chapter in India and you can various stakeholders at a reason- roadside assistance and on- all of us at Citroën,” says Vin- expect a lot of action in the able cost and become a one-stop road financing for up to five cent Cobée, CEO, Citroën. next few months, with the solution for all the procure- years. “The launch of the new “The Citroën C5 Aircross SUV release of the first vehicle ment and fulfilment needs of Citroën C5 Aircross SUV in goes beyond market expec- from our new family of chemists and hospitals. u India is a proud moment for tations, addressing all the B-segment cars”. u

u 10 u april 19-may 2, 2021 Business India u the magazine of the corporate world Businessmen in the News

new BMW 6 Series has elevates its position by many A been launched in India. notches. Driving pleasure and Produced locally at BMW plant efficiency are enhanced by Chennai, the car is available in a further developed spread one petrol (newly introduced of engines and cutting-edge BMW 630i M Sport) and two innovations. “The new BMW diesel variants (BMW 630d M 6 Series recrafts luxury and Sport and BMW 620d Luxury adds a truly unique dimen- Line). The 6 series is available sion to the executive class seg- at an introductory price from ment,” said Vikram Pawah, R67.90 lakh onwards. After president, BMW group, India. establishing the benchmark “It has the practicality of a in the executive sedan seg- crossover, the dynamics of a ment, the new BMW 6 Series sports car, the silhouette of a now takes this supreme char- fastback and the luxury of a acter to new heights. A distinc- sedan. The personality of the vehicle of choice for modern pleasure’, when they take the tive design, striking presence BMW 6 Series distinguishes leaders, who expect the best wheel. It is an expression of and outward BMW sportiness it clearly from the crowd luxury and comfort when style and beckons those who combined with best-in-class and is the reason for its long- they are at the rear – and noth- won’t settle for anything but luxury and travel experience lasting success. It is the ing short of ‘sheer driving the best”. u

Institute) as ‘a venerable and koda Auto India has a distinguished educational Šannounced the start of pro- institute that stands for excel- duction of the all new Octa- lence’, he says: “I consider this via at its production facility in a huge privilege to be on the Aurangabad. The celebratory same page with those illustri- Lava Blue vehicle dons the ous people who have won this Lauren & Klement badge that recognition earlier.” The VJTI pays homage to the founders Alumni Association (AA), he of the long-standing Czech says, got him ‘hooked back to auto manufacturer, as well VJTI’, a chance meeting with a as its 125 years of rich his- classmate Medha Dharap, who tory and heritage. Slated to be was then head of the mechan- introduced later this month, ical engineering department, the latest offering will build on helping him to reconnect with Octavia’s strong legacy – tak- his is truly a dream come the AA office. Through this, ing technology, features and among discerning car buy- Ttrue, says N. Muralid- he set up a system to award overall luxury quotient to the ers in a dynamically evolving haran about being recognised scholarships to four students next level. “The Octavia has automotive market like India. as ‘Distinguished Alumnus’ of every year through his fami- always offered a compelling With the commencement of VJTI for 2020. “I did not dream ly’s S. Natarajan & N. Jayalak- combination of the brand’s production, we also commit of getting this award,” he adds. shmi (SNNJ) Charitable Trust. emotive design, exquisite inte- to a stronger product port- Muralidharan, who earned “We have so far been able to riors, class leading safety and folio as we look to grow our his BE (Mech) from the erst- touch the lives of 33 VJTI- intelligent connectivity fea- presence in India. In line with while Victoria Jubilee Techni- ians and help them finish tures, and the all new iteration our laser sharp focus on cus- cal Institute in 1977, is now an their mechanical engineering pushes the yardstick further,” tomer-centricity, we are also executive coach based in Beng- degree,” he says, adding: “The said Zac Hollis, brand direc- rapidly growing our network aluru. “I am honoured, happy most satisfying moment was tor, Škoda Auto India. “A presence and have introduced and humbled.” Describing the when some of the SNNJ schol- 20-year run and about several initiatives to ensure 134-year-old VJTI (now Veer- ars set up a similar scholarship 100,000 satisfied customers is an unmatched ownership mata Jeejamata Technological for more needy students.” u a testament to its strong equity experience.” u

nion Bank of India won major awards last fortnight, Uincluding the ‘Best Strategy in HR 2020’ award and the prestigious honour of ‘HR Oriented CEO Award 2020’ conferred on the bank’s MD&CEO Rajkiran Rai G at the Apex India HR & Business Excellence Awards 2020. The Apex India Founda- tion, Delhi, honours individuals and organisations for their out- standing contribution towards HR good practices and business excellence through its annual award programme with a thor- ough selection process by an elite jury of notable personalities. The awards recognise the excellent work carried out by thebank by adopting best practices and its quest to provide a completely digital employment experience. u

u 11 u april 19-may 2, 2021 Business Notes Business India u the magazine of the corporate world sanjay borade sanjay sugar production estimates to 35 mil- lion tonnes for the 2020-21 market- Well on track ing year, from the earlier projections of 29.9 million tonnes. Consumption has Sugar exports are on course to been pegged at 25.5 million tonnes. utilise the announced quota Meanwhile, Indian Sugar Mills Asso- ciation (ISMA), in a release, has said that, as on 31 March 2021, sugar mills in India have produced 27.76 million tonnes of sugar as against 23.32 million tonnes produced last year. According to ISMA, sugar production in Maha- rashtra was 10.05 million tonnes till 31 March 2021, as against 5.9 million tonnes produced last year during the same period. Mills have so far crushed about 96.1 million tonnes of sugarcane, which is the highest ever in the his- tory of the state, surpassing 95.4 Ready for the million tonnes of cane crushed crushing: sugar in the full 2017-18 season. mills in India have The reason for lower produc- produced 27.76 tion, despite higher crushing, ugar mills in India have contracted that has hampered Iran’s million tonnes of as compared to 2017-18, is the to export 4.9 million tonnes of imports this time around. sugar this year lower sugar recovery and the Ssugar during the ongoing 2020-21 Last year, Iran was the top diversion of sugarcane juice /B sugar season, which started on October export destination for Indian heavy molasses for ethanol produc- 2020. In other words, the mills have sugar, with 1.1 million tonnes. How- tion in the current season. So far, 113 already contracted over 80 per cent of ever, this year, as Indonesia brought mills in the state have already closed the government allocated sugar quota down its quality requirement to 600 their crushing operations in the state, of 6 million tonnes. Importantly, out of icumsa from 1,200 icumsa, India man- while 76 sugar mills are operating. On this contracted exports, the mills have aged to match it and emerged as the the corresponding date last season, out despatched 3.39 million tonnes (over top importer – so much so that Indone- of 146 mills, 28 were in operation. 68 per cent) during the current season, sia has now become the new market for In UP, 120 sugar mills, which were while 2.5 million tonnes have already Indian sugar. in operation, have produced 9.4 mil- been exported out of various ports. Out lion tonnes of sugar till 31 March 2021. of the total despatched sugar, raw sugar Indonesia joins the party “Despite Out of 120 sugar mills in existence, 39 amounts to about 1.9 million tonnes, the delay in the announcement of the have stopped crushing operations. As while the remainder is white/ refined export policy and the container short- compared to this, 113 were in opera- sugar, according to All India Sugar ages, we are well on course to avail the tion last year on the same date, with Trade Association (AISTA). 6 million tonnes of quota allocated by the sugar production touching 9.72 Experts are of the view that this is the government,” says Rahil Shaikh, million tonnes. a big achievement on the export front, vice-chairman, AISTA & managing In case of Karnataka, 66 sugar mills at a time when there was a delay in the director, MEIR Commodities India Pvt have produced 4.14 million tonnes of announcement of the export policy and Ltd, Mumbai. “With Indonesia bring- sugar. Out of these sugar mills, 65 mills the container shortages. At least 700,000 ing down their quality standard, we have already closed their operations in tonnes have been physically exported have been able to match their require- the state and only one mill is in action. every month for the last three months. ment for the first time, which explains During the corresponding period last According to AISTA, this year, Indo- this major surge in export to that coun- year, 63 sugar mills had produced 3.35 nesia has emerged as the top importer try. On the other hand, Iran, despite million tonnes of sugar; 60 had ended of Indian sugar, replacing Iran, which being our traditional market, has suf- their operations, while three mills has traditionally been a major buyer of fered due to their currency issue”. MEIR stayed in operation. However, in the the product. At 961,000 tonnes, Indo- Commodities, an agro commodity upcoming special season in July-Sep- nesian import covers 38.5 per cent of trading firm, focusses on domestic and tember 2021, a few mills in South Kar- the actual exports taken place so far. international markets in various com- nataka will operate and a total of about This is followed by Afghanistan (about modities like sugar, ethanol, molasses, 4.25 million tonnes of sugar is expected 12 per cent), Sri Lanka (10 per cent), the edible oil, organics, etc. to be produced in the state in the cur- UAE (9 per cent) and Somalia (7.6 per The Delhi-based trade association, rent season, says the ISMA release.u cent). which completed five years in January Arbind Gupta AISTA has cited the currency issue 2021, has revised upwards its domestic [email protected]

u 12 u april 19-may 2, 2021 Business India u the magazine of the corporate world Business Notes sanjay borade sanjay REAL ESTATE Challenging times hile the residential market in WIndia has witnessed a steady rise in demand in the last couple of quar- ters, the office market has continued to languish. According to a JLL report, at 5.53 million sq ft of absorption, the overall office market has witnessed a net absorption decrease of 33 per cent in Q1 2021 over Q1 2020, with Ben- galuru, Hyderabad and Delhi NCR accounting for nearly 80 per cent of the net absorption during the quarter. Bengaluru and Delhi NCR were also the two markets which witnessed an increase in net absorption when com- pared to Q4 2020. promising in the first quarter of 2021. Q1 2021. Despite the rise in vacancy “While 2020 ended on a rela- The quarter witnessed gross leasing levels, Bengaluru, Chennai and Pune tively high note, there was still uncer- volumes of 7.5 million sq ft across the continued to hover in single digits.” tainty in the market with respect to top seven markets. Interestingly, the resumption of business as usual,” larger market of Mumbai saw a mas- Light at the end of the tunnel affirms Samantak Das, chief econo- sive jump in leasing volume from 0.5 Meanwhile, office rentals in Q1 2021 mist & head, research & REIS, India, million sq ft in Q4 2020 to 1.6 mil- remained stable across the major office JLL. “Occupiers continued to adopt a lion sq ft in Q1 2021. This was driven markets in India. With vacancy lev- cautious approach and focussed on mainly by a few select large pre-com- els still below 15 per cent and limited reassessing their real estate portfo- mitment deals in upcoming spaces upcoming Grade A supply across key lios and long-term commitments. To within the BFSI space. Further, Delhi markets in the next few years, the office add to the woes, increasing fears of a NCR saw a marginal increase in leasing market in India continues to be tilted spike in Covid-19 cases in the second volumes from 1.9 million sq ft in Q4 towards landlords. “Hence, reduction half of March further pushed occupi- 2020 to two-million sq ft in Q1 2021. of headline rents is not a popular phe- ers to press pause again and postpone New completions during Q1 2021 nomenon and rents are expected to their real estate decisions. As the vac- were recorded at 13.43 million sq ft – remain range bound in the short to cination drive is gaining momentum a marginal increase of 5 per cent q-o- medium term,” explains the JLL report. and occupiers remain cautiously opti- q. In sync with the net absorption, the “However, landlords continue to be mistic, 2021 is expected to witness markets of Bengaluru, Hyderabad and accommodative to the demands of close to 38 million sq ft of new com- Delhi NCR accounted for nearly 80 occupiers and are providing flexibility pletions, while the net absorption is per cent of the new completions dur- via increased rent-free periods, reduced likely to hover at 30 million sq ft, with ing the quarter. On a y-o-y basis, new rental escalation and fully furnished a marginal downward bias. This will completions across the top seven cit- deals to occupiers to close deals.” be on a par with the average annual ies jumped by 56 per cent from the “The leasing momentum in the net absorption levels seen during 8.6 million sq ft recorded in Q1 2020. upcoming quarters will mainly 2016-18.” Interestingly, new completions even depend on the time taken to contain According to the JLL report, pre- surpassed the average quarterly lev- the second wave of Covid-19 cases,” commitments in new completions els of about 13 million sq ft witnessed argues Das. “However, it is important played a significant role in driving the during the historic year of 2019. to point out a few things that give us net absorption. In the first quarter, “Occupiers continue to review their confidence that there is light at the 31 per cent of new completions were real estate portfolios and are adopt- end of the tunnel”. already pre-committed. The maxi- ing consolidation and optimisation “The increasing attendance in offices mum pre-commitment levels were strategies in order to rationalise space across the major markets before the sec- observed in the southern markets of required while minimising costs,” says ond Covid-19 wave bears testimony to Bengaluru (51 per cent of new comple- the report. “The subdued net absorp- the confidence and commitment of tions) and Hyderabad (45 per cent). At tion levels could not keep pace with corporates to get back to working from the same time, it is important to note new completions, which resulted in office,” contends theJLL report. “It is that the leasing momentum in some overall vacancy increasing from 14 important that landlords continue to of the larger markets have remained per cent in Q4 2020 to 14.9 per cent in be receptive to the demands of tenants

u 13 u april 19-may 2, 2021 Business Notes Business India u the magazine of the corporate world and offer flexible options, in terms of consistent rise in home sales, the recent help their employees by sponsoring space as well as value.” spike in Covid-19 cases in the coun- vaccinations. In keeping with its com- Meanwhile, Knight Frank, the lead- try has to be factored in for the future. mitment to ensure the safety and well- ing real estate consultancy, in its lat- “We are yet to understand the complete being of its people, Hero MotoCorp has est report, observes that the residential impact of the ‘second wave’ on eco- initiated a Covid-19 vaccination drive market in India has seen a steady rise nomic activities and resulting wealth across the organisation, including its in both sales and launches in Q1 2021. creation,” adds the Knight Frank chief. permanent and contractual employ- While launches were recorded at 76,006 “The state with the largest demand – ees. The company will bear the cost of units, sales were recorded at 71,963 units Maharashtra – has introduced a par- vaccinating its workforce. It will also in the top eight cities of India. tial lockdown for April, which, apart facilitate similar vaccination initia- Mumbai and Pune led the table in from the fact that stamp duty has been tives across its group companies. It is both launches as well as sales. These reverted to its previous levels, will also also working closely with its dealers two markets benefited from significant lead to severe restrictions in public life. and supply chain partners to facilitate regulatory impetus in the form of dis- The extent of the impact of the sec- vaccinations for its employees across counts in stamp duty charges that led to ond wave of the Covid-19 pandemic in its ecosystem. More than 80,000 significant improvement in sales veloc- India is still unknown, thus the sector employees will be covered under this ity. While end users were keen on taking will have to tread carefully to maintain initiative. “We, at Hero, have always advantage of the reduced stamp duty its recently acquired momentum. u believed in the holistic development regime, developers also thought it right Arbind Gupta of our employees as well as society to take advantage of the said growth [email protected] at large. With the government open- to launch new projects. In the last few ing up the vaccination process against weeks of Q1 2021, Karnataka also doled the Corona virus for the corporate out stamp duty sops to home buyers for Covid Vaccine sector, we have decided to vaccinate residences costing up to R45 lakh. How- our workforce and other stakeholders ever, the impact of this may only be Timely within the extended Hero family at no seen in the subsequent quarters. cost,” say company officials. According to Knight Frank, home- Another two-wheeler maker, TVS buyers were inclined to acquire ready response Motor, will provide free vaccinations or near-ready inventory to minimise y 10 April 2021, India had admin- for all group employees and their completion risk. This is reflected in the Bistered 100 million vaccinations in immediate family members. This vacci- average age of inventory which stayed the record span of 85 days. Even if the nation drive is in line with the ongoing at 16.7 quarters in Q1 2021, as against numbers are the highest in the world, government guidelines and will cover 15.9 quarters the year before. This is we have a long way to go to cover the 35,000 direct and indirect employees also in line with developers focussing entire population. As the second wave across the country. “We have strived on liquidating older inventory before of Covid-19 spreads across the country, to provide complete support to our launching new products, something the government of India is attempting employees and their extended fam- which has helped reduce unsold inven- to increase the number of people being ily members through the pandemic, tory levels to 0.44 million units in Q4 vaccinated, with the goal of immun- ranging from apps for emergency 2020, 2 per cent less than a year ago. ising most of the population. For the requirements, doctor-on-call, Covid “Q1 2021 saw a significant rise in uninterrupted supply of vaccines, the awareness communication and mental sales across the key markets, led by government is also bringing in Sput- wellness programmes,” says R Ananda Mumbai and Pune – the two markets nik V as the third vaccine to get emer- Krishnan, EVP, Human Resources, TVS that received substantial backing from gency use approval, after the Serum Motor. “With this vaccination drive, the state government in the form of Institute’s Covishield and Bharat Bio- we continue our endeavour to prioritise reduced stamp duty,” observes Shishir tech’s Covaxin. “The government has the health and safety of all our employ- Baijal, chairman & managing director, managed to scale up significantly in a ees and their families.” Knight Frank India. “Other cities also short span of time and there will be a Volvo Car India also plans to bear recorded a rise in sales of homes due to further increase in the weeks to come the cost of vaccinating its employ- a shift in attitude in homebuyers who as we are looking at vaccinating at least ees against Covid-19. This benefit will have now started to prefer ownership. five million persons per day.I ndia has extend to their spouses, children and That, coupled with home loan interest the requisite capacity just as, under parents too. “Safety is an integral part rates at multi-decade lows of sub 7 per the Polio immunisation programme, of Volvo’s ethos. During the last one cent, a substantial correction in apart- the government had managed to vac- year, we have worked with the utmost ment prices, as well as increase in house- cinate 170 million children in a week,” care and concern for the safety and hold savings, seems to have convinced explains N.K. Arora, a member of the well-being of our employees. We had homebuyers that this was an opportune national task force on Covid-19. put in place stringent health-related time to purchase their properties.” To support this drive and reduce the protocols during this period. Now, However, Baijal is of the view that, burden on the government, a number with the government opening up more while sentiments have remained largely of industry units, including automo- age groups in its vaccination drive, we positive in the first quarter leading to tive companies, have come forward to are encouraging our employees to get

u 14 u april 19-may 2, 2021 Business India u the magazine of the corporate world Business Notes

Industry units have come forward to help the vaccination drive Kandpal, MD & CEO, themselves and their family members consultants. While this SBI General Insurance. vaccinated,” says Jyoti Malhotra. MD, vaccine is voluntary, it Aakash Educa- Volvo Car India. is also one of the most tional Services has Rapido, India’s bike taxi platform has effective tools to fight announced that it will come out with the innovative idea of its against Covid-19. As be taking care of the #RideToVaccinate initiative and pledges the government gears complete vaccination support to the vaccination drive by pro- up for the next phase of cost for all its employ- viding free rides to citizens in Delhi the vaccination drive, ees and one depen- NCR to and from 12 eligible hospitals. we encourage all our dent each across India. The initiative is aimed at providing a employees and their This will amount to safe and accessible commute option to families to opt for the 5,000 employees, plus senior citizens eligible for vaccination. vaccine and fight against Covid-19.” one dependent each, for the two shots “With the country undertaking the SKF India too has announced cost of vaccine. largest vaccination drive in the world, coverage for Covid-19 vaccinations for Taking a step further to ensure bet- as corporate citizens, we at Rapido want all employees and their immediate fam- ter healthcare facilities for its associ- to emphasise the importance of vaccina- ily members. “We believe that covering ates, ADP India has stated that it will tion among the elderly and those above the cost of vaccination for our employ- sponsor the vaccines for all its employ- 45, in the face of the pandemic,” said ees and their immediate family mem- ees. It will cover the cost of the total Aravind Sanka, co-founder, Rapido, on bers expresses our gratitude for their vaccine for over 50,000 beneficiaries the launch of the #RideToVaccinate pro- persistent support and absolute trust in in India spread across Hyderabad, Pune gramme. “We are offering 100 per cent us,” announced Gautam Kumar, CHRO, and Chennai, along with over 10,000 off on rides up to R50 to all citizens in Director HR, SKF India. “We encourage beneficiaries in the Philippines. “Our Delhi NCR.” vaccination for our people who are eli- employees and their families are at the gible and choose to receive the vaccine core of who we are as an organisation,” Prioritising health and well-being to protect themselves and their families says Vipul Singh, divisional vice-presi- Ridesharing company Ola Cabs will and help our nation fight Covid.” ZF dent & head, HR, ADPI. cover vaccination costs for all employ- India, a leader in driveline and chassis India is one of the major players ees and dependents. The vaccination technology will cover the cost of vac- in the global pharma and healthcare drive will also be extended to all the cinations for all its on-roll employees industry and the Covid-19 vaccines direct contractual employees, consul- in India and their dependents, includ- produced here have been sent across tants, advisors of the company and ing parents. It will also support contract the world. Having hit the global and their immediate dependents, including workers and support staff. Indian economy hard last year, the spouses, children and parents, compris- Companies in other sectors, such as pandemic is now posing a major ing more than 24,000 people. The com- SBI General Insurance, on their part, threat again. All citizens need to fol- pany is partnering with the relevant have extended support to the vacci- low some simple steps to protect them- authorities to conduct the vaccination nation drive, under their CSR initia- selves and others, including wearing drive. “We are happy to announce that tives. SBI General Insurance will cover a mask, washing one’s hands regu- Ola has decided to cover vaccination the cost of two shots of vaccination, larly and social distancing. This will costs across the group,” says Ola spokes- for low-income groups in Maharashtra help to avoid spreading the virus to person Varun Dubey. “At Ola, we prior- and Andhra Pradesh. “We are driven others. If these rules are followed itise the health and well-being of not by a mission to serve the most vulnera- sincerely, India can win this battle only our employees and their loved ones ble communities and people at risk with against all odds. u but also our extended family, who work sustainable interventions that can help SM BOOTHEM directly with us, including advisors and in transforming their lives,” says PC [email protected]

u 15 u april 19-may 2, 2021 Column Business India u the magazine of the corporate world A wake-up call

Businesses in the organised sector must help to effectively combat the pandemic

ndia cannot overcome the Covid-19 pandemic The central issues for employers now are how without whole-hearted efforts by companies to support return to work efforts, encourage vac- Ito control the new SARS-CoV-2 variants at cine adoption, and accelerate economic recov- the workplace and redesign care for employees to ery among consumers they serve. The first need keep the work environment safe during the longer is to avoid being high-handed and talking down term. The Indian economy’s informal sector does to employees. For some people, accepting vac- not have the means or scale to effectively com- cine can become an emotional issue so their con- bat the pandemic, but businesses in the organ- cerns must be addressed while emphasising that ised sector must shoulder this burden although BRIJ KHINDARIA the workplace cannot be safe for everyone without they employ just a small minority of the nation’s maximum vaccination. workforce. At the same time, each company should pro- Dealing with this corona-virus crisis is not vide support for vaccination in the local com- an act of employee welfare. It is a fundamental munity because there is no other way known as need because no company can function without yet of preventing the emergence of corona-virus healthy workers, who trust that the management variants and their spread. Employees should cares for them. The efforts of the government to not have to emerge from a safe workplace into get the people vaccinated may attenuate the virus’s a home and neighbourhood that is rife with impacts over time, but may not free the country infectious variants. from further waves of infection. The current surge of infections touching major need is to help employees to avoid fall- 170,000 a day should be a wake-up call for Indian Aing into the traps of fake news and misin- business, especially at a time when millions are formation by providing education on the facts. flocking to Hardwar for the Kumbh mela. The mela That can be done by bringing in experts to share could be the planet’s largest super-spreader event credible and authoritative information about and big employers may find themselves caught in vaccines as well as corona-virus transmission, a vice between sick employees and disrupted sup- including wearing face masks, washing and san- ply chains. itising hands, and keeping social distance even Although multiple vaccines are being devel- with friends and relatives. It may be necessary to oped and distributed in India, the mortal threat of provide time off and transport costs to the vacci- new corona-virus variants is increasing by the day. nation centre. The emergence of variants means that the level of Alongside support for employees, it is really vaccination required to achieve herd immunity important to handle end-to-end supply chain may not be achieved for a long time. issues at the same time. McKinsey, the consultancy, The situation for Indian businesses can become recommends creating transparency on multi- dire, if the pandemic prevents them from tak- tier supply chains by establishing lists of critical ing advantage of upsurge in economic activity components, determining who supplies them forecast in the US and many countries in Europe and identifying alternative sources. To keep and South East Asia. The IMF expects the world production running, it is essential to estimate economy to grow by 6 per cent in 2021, up from available stocks of components along the value its 5.5 per cent forecast in January. It estimated chain and ensure that they can be renewed. It growth of 6.4 per cent in the US and 5.1 per is also critical to improve estimates of final-cus- cent in other developed countries, which are tomer demand and optimise production and India’s main markets and sources of high-tech delivery capacity in light of potential supply chain supplies. disruptions. “Even with high uncertainty about the path of In India, it is particularly important to stress test the pandemic, a way out of this health and eco- a company’s financial capacity in case of repeated nomic crisis is increasingly visible,” IMF chief lockdowns and supply chain shortages. India is economist Gita Gopinath says in the April 2021 The author is an entering major state and national election cycles, World Economic Outlook. But the report also international affairs which mean more political rallies and potential warns of ‘daunting challenges’ because of the dif- columnist for Business spread of corona virus. So, companies should not ferent rates of vaccine roll-outs and corona-virus India. He can be neglect their workplace situations. Employers will variants. The warning is particularly relevant contacted at have to find ways to protect their people, even as for India. [email protected] India’s political shows roll on. u

u 16 u april 19-may 2, 2021 Business India u the magazine of the corporate world Panju’s Page By Panju Ganguli

IN A COUNTRY AS WIDE AS OURS, WE SHOULD NOT WORRY PORTS PLAY A MAJOR ROLE IN SHAPING THE FUTURE. ABOUT FISCAL DEFICIT STATISTICS, BUT LOOK AT THE THROUGH APSEZ’S 89.6% STAKE IN GANGAVARAM PORT, QUALITY OF FISCAL DEFICIT. THE ADANI GROUP WILL GREATLY EXPAND ITS PAN INDIA CARGO PRESENCE.

GAUTAM ADANI Chairman, Adani Group

AMIT SHAH Union Home Minister

u 17 u april 19-may 2, 2021 Cover Feature Business India u the magazine of the corporate world

On a strong wicket

With price war over and a digital portfolio in place, Airtel is keen to play on the front foot again

u 18 u April 19-May 2, 2021 Business India u the magazine of the corporate world Cover Feature

t is no secret that, when the glitch-free style in a difficult hour for would create a company and then Adjusted Gross Revenue (AGR) its consumers and then upping the sell it for a premium given the grow- bomb exploded early last year, ante on some of the critical pieces ing crowd of deep pocketed entities with an apex court bench rul- (including digital) when their greater in a business which held a plethora ing out any leniency to leading adoption began thanks to the Corona- of promises,” recalls a veteran of the Itelcos, this had catastrophic implica- led confinement. industry. But Mittal proved most of his tions for the leading telcos – especially Marketmen will vouch for the fact critics wrong, making Airtel a formi- Bharti Airtel and Vodafone. Reliance, that Vodafone’s growing weakness in dable name in its own right. Tiding with a late entrant tag, had a minus- terms of loss of subscribers may also over all kinds of challenges (includ- cule burden on this front, which oth- have played a role in Airtel’s growing ing the Reliance wave) Airtel has not ers had accumulated over more than strength. In the eye of the consumer, only spread within India but also one decade. both of them have traditionally been carved out a distinctive international The ruling was issued on 13 Febru- put on the same pedestal on the ser- footing. ary, after telcos failed to meet the 23 vices and brand positioning fronts. January deadline. Comments from However, Reliance, in its two avatars Market positioning Kumar Mangalam Birla (who con- in the past two decades (with CDMA in Today, the company is ranked at num- trols Vodafone Idea) prior to the apex 2003 and now Reliance Jio since 2016), ber two globally in terms of subscrib- court judgement, that an unfavour- has happily positioned itself as the ers’ volume in a cumulative sense able ruling might force it to shut shop brand for the masses, willing to go to (India plus 15-odd other countries, permanently, only added fuel to the that extra mile for them. mostly in Africa) and has a market speculative fire. But even in that hour Now, in its 26th year (it was cap of close to $40 billion. Nothing of crisis, nobody was saying it posed among the first movers when cellu- surprising; having created an expan- survival threats to the Sunil Bharti lar licences were opened, rolling out sive telecom business of this scale has Mittal-led Airtel. At worst, it was its service on 12 September 1995), Air- made Mittal one of the most admired expected to further add to its liquid- tel has undoubtedly been an excep- and respected post-liberalisation faces ity pile-up, affecting its performance tional story in the topsy-turvy telecom of India Inc (he was the recipient of in the near to medium run. business (from the peak of 15-20 pri- our Businessman of the Year Award Cut to the present day. Since early vate players, only three entities now in 2002). last year, a huge volume of data has exist, apart from a couple of govern- “In the past two-and-a-half decades, flown through the Indian telecom ment-backed telcos). It was created by he has created and spearheaded a com- ecosystem, with Corona-led, unprec- an exceptional first-generation entre- pany which has grown at a hefty 10-12 edented disruptions also contribut- preneur, who graduated from man- per cent CAGR and within the new age ing to a new churning witnessed in ufacturing cycle parts in Ludhiana major enterprises bracket, it has a simi- the telecom business. And amidst this to making India’s first push button lar reputation in the marketplace as an rapidly changing scene, Airtel, as an phone sets and then jumping on to Infosys in the IT sector,” observes BK entity, seems to have engineered a the cellular services bandwagon at an Syngal, former chairman, VSNL, often major turnaround, putting itself on early stage. referred to as father of the internet and a stronger wicket. This doesn’t seem Old-timers will vouch that, in data services in India and a pioneer- to have stemmed from introducing a the initial phase, Airtel’s long-term ing figure in the Indian telecom space. new fire-fighting strategy, which then sustainability in the game, where Interestingly, this company, now in worked more effectively than imag- stakes increasingly hit an unimagi- its post silver-jubilee phase, seems all ined. The answer probably lies in try- nable stratosphere, was doubted. “It set to give a tweak (from a medium- ing hard to sustain operations in a was widely believed then that they to long-term perspective) to its

Performance highlights Revenue mix FY19-20 Financial year ended 31 March Tower 2016 2017 2018 2019 2020 infrastructure Operating highlights (000’s) 7 Total customer base 357,428 372,354 413,822 403,645 423,87 India 266,626 290,329 322,292 302,206 309,754 Digital TV Airtel business South Asia* 10,238 1,964 2,267 2,587 2,929 services 3 Mobile 14 services (India Africa 80,564 80,061 89,262 98,851 110,604 & South Consolidated financials (R mn) East Asia) 48 Total revenues 965,321 942,506 826,388 807,802 875,390 Mobile services (Africa) EBITDA (before exceptional items 341,682 356,208 304,479 262,937 371,053 Home services 25 Cash profit from operations 289,083 283,668 227,169 167,777 254,951 2 Earnings before tax 128,463 77,232 32,669 (17,318) (428,466) Net profit 60,767 37,997 10,990 4,095 (321,832)

Source: Company Annual Report Source: Company Annual Report

u 19 u April 19-May 2, 2021 Cover Feature Business India u the magazine of the corporate world

5G and new telecom order larger issue is whether India will theory doing the rounds is have enough consumers to pay that with limited players on the or the Indian telecom busi- the country’s first telco to suc- for such services in the coming stage, the arch rivals of yes- Fness, the next big frontier, of cessfully demonstrate and years. “You can’t imagine pro- teryear will probably collabo- course, is the roll-out of 5G ser- orchestrate ‘Live 5G service’ viding viable 5G services at an rate and share networks and vices, which is expected to be over a commercial network in ARPU of $2-3. It must begin at assets. “It may happen,” BK the leading development over Hyderabad. Even Vodafone has the range of $8-10, given the Syngal says succinctly. Inciden- the next decade. And the big said it will get ready for the experience of other operators tally, the big two of the game, two – Reliance Jio and Bharti next gen service after spec- globally. 5G will, therefore, Bharti Airtel and Reliance Jio, Airtel (see graph: Bouquet of trum allocation. see a lot of concentration on showed surprising camarade- services offered by Telcos) – Though there is no doubt the b2b used case for gener- rie early this month when Air- have been sending signals on that 5G will turn the tide of ating traction,” Sanjay Kapoor, tel announced an agreement their preparation vis-à-vis trial the telecom business over the former CEO, Bharti Airtel, with Reliance Jio to transfer runs for the big-ticket devel- next 10 years, determining the points out, while adding that the ‘Right to Use’ of Airtel’s opment even as spectrum allo- new telecom order, analysts unlike in previous genera- 800 MHz spectrum in Andhra cation from the government point out a host of issues it tion technology where opera- Pradesh (3.75 MHz), Delhi is expected to unfold over the faces before becoming a prac- tors were creating the network (1.25 MHz) and Mumbai (2.50 next one year. Reliance Jio, tical wave. While the entire 5G first and then scouting for cus- MHz) to Jio. Airtel is expected meanwhile, has committed to infrastructure network is esti- tomers, the order will now be to receive around R1,500 crore launch an indigenously-built mated to cost a gigantic $30 reversed. from this deal. Is this indicative 5G network in the second half billion and will significantly up Considering the capital- of more co-operation ensu- of the year. And, early this year, the ante in the capital-inten- intensive nature of 5G tech- ing between the two leading Airtel announced becoming sive game that telecom is, the nology adoption, a popular telcos, which control nearly orientation and focus on developing a also reconfirmed the theory that the much of this is due to the impact of larger platform of defining digital ser- top brass is fairly convinced the com- the price war in the larger domestic vices placed comfortably on its wide- pany has emerged considerably stron- market, which lowered the ‘average based telecom edifice. Some recent ger in the past one year. Or, probably, revenue per user’ (ARPU). But when trends may only have buoyed its con- it is on its strongest wicket after the the final revenue number of 2020-21 viction to make expeditious moves Reliance Jio-led price war forced many is announced next month, there is a in this direction. With the number companies to shut shop. strong possibility that the company of players reduced to a handful, tele- An analysis of its key perfor- will cross the R1 lakh crore mark this com is now certainly a saner place to mance parameters between 2016 to fiscal. be in, commanded by market-driven 2020 makes it clear that, in a cumula- However, the financial numbers factors. “Airtel is at a classic inflection tive sense, while the number of users between Q1, 2019-20 and Q3, 2020- point,” observes Sudershan Banerjee, of its services both within India and 21 reflect a modest to sharp uptick former CEO, Hutchison Essar Telecom outside went up – from 357 million on several key parameters. According (acquired by Vodafone in 2007). “It is to about 423 million – that did not to a study by Motilal Oswal analys- well-placed to raise the customer ser- exactly lead to revenue augmentation ing the Q3, 2020-21 performance of vice bar, make it clear to its consum- in the same proportion (see graph: Per- Bharti Airtel, the most significant gain ers that it is a premium brand and add formance highlights). In fact, its reve- has been in ARPU, which has shot up killer apps and content.” nue dropped from a high of R96,000 from R129 at the beginning of 2019-20 crore to R80,000 crore in 2019, before to R166 at the end of the third quarter A turnaround year showing some recovery in 2020. And in 2020-21. There has been a similar Will 2020, a year that began on a dis- mal note, actually end up as a major Growth in ARPU and wireless subscribers (INR/month/user) (million) turnaround year for Airtel? That is the big question today. And, even as senior BAL-India Mobile Services (LHS) VIL (LHS) RJio (LHS) officials of Airtel, including its chair- VLR subscriber base (RHS) man Mittal and MD & CEO Gopal Vit- tal, who is in command of operations, did not respond to our query, scores of research reports furnished after its ster- ling Q3, 2020-21 performance and for- mal investors’ calls statements clearly underline the turnaround theory in no uncertain terms. A senior official 3QFY19 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 1QFY21 2QFY21 3QFY21 of Airtel (on assurance of anonymity) Source: companies, Ind-Ra

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Bouquet of services offered by Telcos RJio BAL VIL BSNL/MTNL render them uncompetitive. Wireless mobile I am doubtful about their rel- Home broadband evance in the emerging tele- Direct-to-home/Cable TV com order,” responds Kapoor. B2B Syngal feels no differ- E-payment wallets/platforms ently. “I would not like Content offerings (Music applications/Over-the-top transmission etc) to mince words here – Broadcaster BSNL and MTNL have been Present with a strong market share Moderate Presence No Presence Note: BAL: Bharti Airtel Limited; RJio: Reliance Jio Infocomm Ltd; VIL: Vodafone Idea Limited; BSNL: Bharat Sanjar Nigam Limited; deliberately destroyed. But MTNL: Mahanagar Telephone Nigam Limited Source: Ind-Ra I am hopeful that, at some stage, the Birlas will infuse 70 per cent of the Indian tele- the 5G roll-out in the not-so- till recently) have received serious capital into Vodafone com business in value terms? distant future sets new dimen- a serious drubbing in to turn it into a vibrant entity “Don’t read too much into it,” sions in the business, will the recent years. BSNL, in fact, has again. Given the fact that the advises a telecom sector head main players be Jio and Air- been reduced to a peripheral suicidal price war regime is of a leading research firm. “It’s tel? In terms of market share in player. “Government-backed over and there is projected a ‘win, win’ deal, wherein Air- revenue generated in the mar- entities like BSNL and MTNL uptick in revenue, with con- tel is selling the unutilised ket (see graph: Revenue market are in a disadvantageous posi- sumers graduating to next spectrum, and Jio is buying share trend), both Vodafone tion. They still don’t partici- generation technology appli- something that will fit in its and the government-backed pate in the mobile broadband cations, there seems to be no network.” BSNL (the traditional tele- space, due to their absence case to leave the fray. Why are A bigger question, however, com giant considered unbeat- from 4G services and have they otherwise running the is: as the new order defined by able in the hinterland reach high operating costs, which show even now?” asks he. u sharp jump in total subscribers and “With working from home and online volume jump of data subscribers has data subscribers and a similar trend classes becoming a necessity, the risen sharply, from 47 per cent in is visible in Airtel’s Africa business, conversion to 4G from 2G has been March 2019 to 63 per cent in Decem- which accounts for 25 per cent of the quite rapid. And, there has been the ber 2020. And this tells the story,” company’s business today. sharpest increase in data consump- says Prashant Tarwadi, director, India “Bharti’s superior execution quality tion. The leading players have made Ratings, pointing out the trend in is reflected in its strong performance the most of this opportunity,” says specific terms. over the past three quarters, with 8 Aliasgar Shakir, Senior VP, lead, tele- Another popular theory doing the per cent ARPU growth without a tar- com, Motilal Oswal. “The percentage rounds in the marketplace is Airtel iff hike, leading to resounding EBIDTA benefiting the most from a situation growth of 27 per cent in Mobile where a struggling Vodafone has lost India. It has certainly surprised, a considerable number of subscribers with market share gains and quality (estimated at 8,000,000 in the second customer acquisitions – 29 million quarter of the last fiscal). Both these 4G subscriber additions (in nine operators have traditionally been months, 2020-21) – which have sup- viewed as having similar attributes. ported the ARPU growth,” the report When Reliance Jio, with its price war maintained. In fact, in Q3, Airtel had strategy, backed by its unmatched fibre made a net profit after a gap of six cable network, appeared and shook straight quarters and added over 14 the scene in the mid-2010s, it evolved million customers during the three- as a strong, solitary player with differ- month period. ent branding and appeal. This theory “Despite the unprecedented volatil- is strongly refuted by an Airtel official, ity that has confronted us this year, we who calls it an unfair assessment. Hav- delivered another strong performance. ing a more robust and attractive port- More important, this consistency in folio of offerings is the major draw, performance is across every part of our he asserts. Sudershan Banerjee, how- portfolio. As a result, we have grown ever, strongly emphasises that getting revenue market share in each of our customers from Vodafone would be a businesses,” Vittal had emphasised in major growth window for Airtel in the a conference call with investors. Ana- near run. “Their best strategy would lysts point to a host of factors which be to work on continuous differentia- have contributed to the great perfor- tion vis-à-vis Jio, with superior content mance of Airtel in the recent past. Vittal: we have grown all our businesses and customer services, which would

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Controlling from sky company, Iridium, which later the past (primarily in seamless went bust; and then, a similar switch over of airwave connec- hose who have been asso- financially stressed OneWeb attempt by Google also did not tivity between the moving sat- Tciated with Sunil Bharti (London headquartered sat- meet with desired results), its ellites) and its not only Mittal Mittal or have observed him ellite communication firm) by large scale commercial utility is (his second fling with the plat- from close quarters may nar- picking up 45 per cent of its yet to fall in place. The advan- form after a short-lived asso- rate this common point while stake last year is being viewed tage of the satellite-driven tele- ciation in 2015) but even Elon explaining his key attributes – a as yet another example of fol- com network, however, is that Musk is gung-ho about it. Star- natural knack to spot the tech- lowing his instinct. Together it can result in expeditious link-SpaceX, a similar ven- nological trends or ideas that with the British government, expansion of network area, ture commanded by him, has are going to define the future. which has interest in the proj- including coverage of difficult already received nod from And, if convinced with any ect because of strategic rea- stretches like deserts and hills, the Australian government for new proposition, he is unlikely sons, Mittal has invested $1 where laying optical fibre or large-scale operations. to hold himself from backing billion and given a new lease putting up telecom towers is Meanwhile, some major it business-wise. “With profes- of life to the company, which difficult. For a company like Air- action is also expected from sional managers taking care was close to being declared tel, it can make a world of dif- OneWeb soon, as it raised of day-to-day operations for a bankrupt. ference in terms of establishing another $400 million from long time, he is more devoted Though the concept of connectivity (5G network too) SoftBank and Hughes Net- to keep an eye on the big cat- broadband internet services with more customers in coun- work early this year. As chair- alysts for the future,” says a being driven by Low Earth tries on their operational map. man of OneWeb, Mittal is yet senior representative of a lead- Orbit (LEO) satellites is not new Several reports suggest again bonding with the best ing industry association. and has been toyed with for that experts in the domain are in the world, trying to milk Mittal’s decision to become more than 20 years now (it was working to do away with the an idea whose time seems to the anchor investor of the started by a satellite telephone operational glitches faced in have come. u stop migration to Jio and acquire users worked on a broader strategy, wherein, the 2000s. In recent years, its aggres- from Vodafone Idea,” he said. even while being embroiled in a price sive campaigns of superior services war in the pre-Corona years, it decided in connectivity and in responding to Adding new pillars to offer quality as its USP. It also delib- customers’ grievances has been carried A key point emphasised by the senior erately allowed nearly 40 million sub- out by a relatively unknown model Airtel official we talked to is that the scribers to go out of its loop since bearing a ‘girl next door’ image. And it recent windfall, if that term can be 2018. These were the customers who has worked at a time when Reliance Jio used, has not simply stemmed from the were not paying much to the compa- is relying on star power in the old tra- company showing survival resilience ny’s kitty and were keeping its critical ditional style,” says a senior advertis- of the highest order and benefitting ARPU level under pressure. ing executive. The company’s internet immensely by just being there (with “Emphasis on quality services has speed has also proven to be faster than only a handful of players now being been a major part of Airtel’s direct com- much of the competition. on the stage) when the cycle turned in munication with consumers at large in At the same time, the company favour of data-driven services. Accord- recent years. It used to rely on celebri- has been gradually broadening its ing to him, the company has seriously ties for its ad campaigns especially in non-mobility services, adding new

Consolidated - Quarterly Earnings (in R crore)

REVENUE EBITDA TOTAL EXPENDITURE OTHER INCOME

46,100 55,900 1,02,000 50,900 1,600 869,00 36,000

600

FY20 FY21E FY20 FY21E FY20 FY21E FY20 FY21E

E: Estimated Source: Motilal Oswal Report

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Manesar data center: reaping the digital benefits ones, especially on the digital plat- have managed to grow our enterprise And considering the major uptick in form. And many of these services are and home business rapidly. The for- digital services after the Corona-led more prominent than ever before with mer has been a jewel in our crown. We lockdown last year, these numbers for data becoming the driving element now have R20,000 crore business com- Airtel are expected to shoot up signif- of the business. Take the case of Air- ing from the enterprise. It includes our icantly when the 2020-21 numbers tel Xstream launched in 2019. A key international business – like subma- are made public in the next couple of offering from the company offering rine cable and data which we sell to months. both DTH connectivity (its DTH ser- international carriers and OTT compa- vice is number two in the country) nies across the world. Our home busi- Collaboration route as well as the fast-growing OTT con- ness is broadband and DTH. We have The Airtel Payment Bank (estimated to tent on broadband. “For leading tel- reconfigured our go-to-market strat- have a monthly throughput of R10,000 cos, the target today is not to hand egy,” says the company official. In crore) is projected to grow manifold you a mobile connection. Their sin- the previous fiscal’s (2019-20) annual considering the growing numbers on gular focus is to garner a larger share report, Vittal had specified the plat- the non-cash payment side. “Airtel of your wallet and for this they have formization of key pillars – data and Payments Bank so far hasn’t appeared a full range of services – home broad- distribution (280 million mobile cus- to be aggressive. But it has put together band, digital enterprise solutions, tomers, over 18 million homes, 2,000 an experienced team and has a robust DTH, e-payment, cloud, etc. Most of large corporates and over a million strategy. It may be ready to be part of these segments are slated to grow very small businesses). With such a connec- the digital growth wave,” says Mihir big in the coming years,” points out tivity ecosystem in place, the company Gandhi, partner (payments transfor- Tarwadi of India Ratings. According had claimed that 15 crore of its exist- mation), PwC India. to Ankit Jain, a telecom analyst with ing customers through the usual plat- Furthermore, the company may ICRA: “Consumers were not willing to forms now also engaged digitally to not exactly be offering opportunities pay for many of these digital services its Wynk, Thanks and Xstream apps. to global and domestic IT and digital in the past even as they liked them to be offered as a freebie or as a comple- Industry Parameters: Industry Shift to Data Centric from Voice Centric mentary service. The critical differ- Parameters 3QFY21 2QFY21 1QFY21 4QFY20 3QFY20 2QFY20 1QFY20 ence now is that they are showing an Telco-wise average monthly data usage (GB) inclination to pay. And this is going to - BAL 16.8 16.4 16.7 15 13.9 13.1 11.9 change the game for telcos.” - VIL 12.3 12 11.1 9.8 8.9 8.3 7.5 Airtel today has a well-developed - RJio 12.9 12 12.1 11.3 11.1 11.7 11.4 portfolio of these services and most of them are readily available in a stand- Industry-wide data subscribers alone or bundled package. “Five years (as % of total subscriber base) 62.8 61.4 59.5 57.7 55.8 51.7 49.4 ago, our mobility business accounted Industry data tariffs (in R/GB) - 11 10.6 11.2 8.5 7 7.7 for 82-83 per cent of our business. Industry voice tariffs (in R/minute) - 0.05 0.05 0.06 0.11 0.13 0.13 Today, it is down to 75 per cent. We Source: Ind-Ra, TRAI, companies

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witnessed good growth in our revenue to $1.03 billion, with year-on-year con- stant currency growth of almost 22.8 per cent. With continued improve- ment in our operating efficiency, this has led to an even stronger growth of 28.3 per cent EBIDTA margin to $485 million,” Airtel Africa CEO Raghunath Mandava had earlier commented. According to a former official of the company, after the multi-billion- dollar deal in 2010, it had taken more time for the African unit to begin delivering desired results than was expected by the top brass. But, around the middle of the last decade, things began to fall in place. Incidentally, it was around this time that Reliance Jio had turned up the heat in the domes- Airtel has put together a holistic and expansive digital portfolio tic market with its price war strategy. Airtel’s international business, mean- services giants to join hands as small Telecom in Uganda and Congo; YuMo- while, has seen many feathers added equity partners and be part of its bile in Kenya; and Millicom Interna- to its cap in recent times, including future journey. But functional collab- tional Cellular and Tigo in Rwanda. the successful enlisting of Airtel Africa oration, in a typical ‘win, win’ style, to In between, it had started its innings on the London Stock Exchange and expand their respective reach and give much closer to home in the Sri Lankan the Nigerian Stock Exchange in 2019, an edge to the product offering is more market in 2009 and Bangladesh helping the company raise $650 mil- of a norm than an exception. “We in 2010. lion. Incidentally, Robi Axiata, the pri- continued to drive deep collaborations The big bet it had taken on its Afri- vate telecom major in Bangladesh (a to enable a world-class experience for can operations in particular, has paid joint venture between Malaysia’s Axi- our customers – be it Amazon, Netf- off as it has now become a robust busi- ata group and Bharti Airtel), also went lix, Zee, Star, Eros, HDFC, Bharti AXA, ness. In the nine-month period in through a successful IPO late last year Apollo Hospitals and a wide number 2020-21, its African subsidiary has at the Dhaka Stock Exchange, raising of start-ups in the retail segment, as reported an increase in revenue of $62 million. also the likes of Cisco, Zoom, Google, 13.8 per cent to $2,870 million. Under- Airtel Africa seems to have become Microsoft and AWS in the enterprise lying the EBIDTA for the nine months as happening a turf as India in terms segment,” Mittal had maintained in was $1,297 million – up 16 per cent in of possible future developments. It his note to shareholders last year. reported currency, while constant cur- has announced signing an agreement rency underlying EBIDTA growth was with Mastercard, which has agreed to International footprint 22.5 per cent. As of September 2020, invest $100 million in Airtel Mobile Back in 1998, when its Indian busi- the company had reported 116.4 mil- Commerce, a wholly-owned subsid- ness had just started converting into a lion customers. “The last quarter iary of Airtel Africa. In another signif- bigger dot, Airtel had stumped many icant development, the company has by its international foray into the Sey- Key Performance Indicators announced selling its telecom tower chelles. But that small debut has now Bharti India Wireless FY20 FY21E 3Q companies in Madagascar and Malawi expanded into a footprint of 18 coun- FY21E* (over 1,200 towers in these markets) to tries in Africa and also South Asia, ARPU (INR) 135 158 164 Helios Towers, which is a leading inde- becoming a key feather in Airtel’s cap. Total Subscribers (m) 284 314 297 pendent telecom infrastructure com- Contributing nearly 25 per cent of the pany in Africa. The aggregate gross Data Subscribers (m) 149 189 174 company’s revenue today, its interna- consideration for the transactions is tional strength has certainly added Monthly churn (%) 2.5 1.9 1.7 expected to be about $108 million. in positioning Airtel in the league of Data Traffic (b MB) 21,020 32,809 8,590 “With these latest tower transac- leading telcos. It turned out to be a big Data usage/sub (MB) 13,284 16,211 17,017 tions, we continue to demonstrate stake game, when Airtel acquired the Airtel Africa strong execution of our asset mone- number two player Zain in the con- Mobile Subs (m) 111 121 119 tisation programme,” observes Man- tinent in 2010 in an expensive deal dava. “These transactions will also ARPUs (USD) 3 3 3 of over $8 billion; nevertheless, the help to improve the mix of our debt move has now started paying off in EBITDA Margins (%) 41.4 45.2 45.3 and increase its tenure through long a major way. This was followed by a EBIT Margin (%) 9.7 15.4 16.2 term leases, which are largely payable spate of smaller acquisitions – Warid *Estimated in local currency by our operating Source: Motilal Oswal Report

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down the line, but agreed that it was bound to go up. In a marketplace like India, with over a billion subscribers, the general perception is that the mar- ket is close to saturation point as far as new subscriptions are concerned. The Airtel official also says the com- pany is particularly keen to give a hard push to its ‘business & home’ segment, which will unlock new opportunities for the company, as he considers them to be worth R40,000 crore and quite fast-multiplying businesses, waiting to be harnessed mostly through bundled offerings. However, even as analysts are pointing at DTH services becom- ing unpopular and loss-making world- wide, Airtel still sees a future in them. “I think the structure of the DTH Consistent innovation and new product offerings take Airtel closer to customers industry is such that it is still attractive in the medium to long term. The price entities, while reducing the foreign country to go live (2017); it launched a structure in India on the linear tele- currency debt of the group.” converged digital entertainment play, vision side is low, compared to most Does the kind of success Airtel has Airtel Xstreme (2019); etc. It has also other markets. While in a market like notched, particularly in Africa, entail effectively used the appeal of noted the Philippines, an average consumer the company to move to newer geog- figures from Indian cricket and Bol- may end up paying $15 per month raphies in the medium-to-long run? lywood (Sachin Tendulkar and Shah for 15-20 channels, in India, he can The senior Airtel official felt that the Rukh Khan) to engage its customers in get about 200 channels for $4-5 per company’s interest was more in con- the past. And, its signature tune, which month. So, the cost of actually hav- solidation in the medium term in music maestro AR Rehman composed ing linear entertainment in the home the locations where it has carved a for it in 2002, became the world’s most is pretty cheap in India,” Vittal had toehold. downloaded mobile music ringtone. reasoned, while dealing with analysts For Airtel, past 25 years of journey after the third quarter. Beyond telecom has undoubtedly been quite eventful Meanwhile, to put its home services There is an interesting element about which also included extreme pressure in top gear and spread them to 1,000 Airtel’s positioning. In terms of sub- moments in no small measures. “Air- cities in India (now available in 120 scribers’ volume, it is number two in tel weathered three-four big crises, cities), it decided to take the LCO route India. But, when you add its interna- including disruption caused by launch (making local cable operators partners tional subscribers to Indian custom- of Jio in 2016, and has emerged out of for last mile connectivity). ers (about 458 million), it becomes market adversities in a healthy shape,” Meanwhile, Airtel recently number two globally, next only to Mittal said at the Amazon Sambhav announced a new structure for the China Mobile, which has 940 mil- event held last week. So, while the past group which, among other things, lion users. And, for the kind of leap 25 years of its journey have been quite also strongly signals its intent to har- it has taken, observers cite consistent eventful, the coming years or decades ness its digital assets to the hilt. Its innovation and new product offer- probably promise to be more exciting, digital assets, spanning Wynk Music, ing (not necessarily mouth-watering with the telecom plus digital equa- Airtel X stream, Airtel Thanks, the pricing deals for consumers, where tion now gaining prominence. Market Mitra Payments platform (used by a neither Airtel nor Vodafone are con- observers underline that both Reli- million retailers), Airtel Ads, Airtel sidered to be initiators) as a key attri- ance Jio and Airtel are well-prepared IQ, Airtel Secure, Airtel Cloud and all bute. On this front, there is a big list with diversified and converged digital future digital products and services of firsts which the company can boast architecture, with the former having will be controlled by the listed entity of. Just to cite a few, it came up with as one of its major targets the strength- Bharti Airtel. Its telecom businesses India’s first pre-paid card with life- ening of its gigantic retail business and will be controlled by a newly cre- time validity (2005); it offered the the latter focussing more on provid- ated entity, Airtel Limited – a wholly country’s first mobile banking plat- ing a holistic set of services to its cus- owned subsidiary of Bharti Airtel. Air- form ‘Airtel Money’ (2011); it became tomers across the board. The company tel Payments Bank will remain a sep- the first telecom operator to launch an official we spoke to did not hazard a arate entity under Bharti Airtel. The over-the-top mobile network applica- guess as to what could be the possible company’s infrastructure businesses tion with Wynk Music (2014); its Airtel contribution of digital or non-mobile such as Nxtra and Indus Towers and Payments Bank became the first in the services to its revenue kitty five years existing international subsidiaries will

u 25 u April 19-May 2, 2021 Cover Feature Business India u the magazine of the corporate world

strongly emphasised the company’s Armed with a best-in-class financial position being in fine fet- network and a robust tle. “The year has witnessed massive spectrum portfolio, Airtel is fund-raising initiatives by your com- well-positioned to capitalise pany, totalling over $8 billion, includ- on future opportunities ing rights issue ($3.6 billion), Airtel Africa IPO ($674 million), perpetual bonds ($1 billion), QIP ($2 billion) and FCCB ($1 billion). Now, with a strong balance sheet, accompanied by a best-in-class network and a robust spectrum portfolio, Airtel is well- positioned to capitalise on future opportunities.” Meanwhile, while preparing for its journey ahead, Airtel seems to have also taken the new route of opting for asset light models of operation, where possible. “Mobile towers and fibre networks traditionally used to be on the balance sheet of the leading tele- com companies globally,” points out Tarwadi of India Ratings. “But, now, many companies are spinning them off as separate SPVs to monetise these investments.” And this is exactly what Airtel recently did in the Indian mar- ket, when it agreed to the merger of its tower business Bharti Infra- tel with Indus Towers. With this, its tower business has been taken off its balance sheet, and the deal paves the way for the creation of one of the larg- continue to operate as separate enti- shareholders on the board in the past est mobile telecom tower companies ties. “The new structure sets an excit- may not have agreed fearing dilution in the world, with an estimated ing future course for Bharti Airtel and of their stakes. This window, however, 169,000 towers. provides focus on the four distinct remains open,” Syngal said. The most speculated issue, how- businesses – Digital, India, Interna- ever, in which Airtel also has to play a tional and Infrastructure, each, in a Chinks in its financial armour decisive role, pertains to the next tar- razor sharp way. We believe this will Airtel’s liquidity stress, however, has iff hike. The last hike (15-40 per cent) provide agility, expertise and opera- been considered a point of concern by the big three in December 2019 tional rigour to serve our customers by most research firms. According to a has already shown results in terms of brilliantly while providing flexibility research paper, while Airtel’s operating appreciation of ARPU across the board to unlock value for our shareholders,” profit has grown by a meagre 2.33 per (larger conversion to 4G being a major Sunil Mittal commented. cent over the last five years, its average contributing factor) with Airtel being By making these changes, Airtel return on capital employed has stayed the biggest beneficiary. So, are the has probably taken the Reliance Jio at 6.37 per cent and its debt-equity telcos talking to each other to strike route of creating an integrated digital ratio, at 2.69 times. Its valuation has again? Though the company official platform now, something that many been expensive and its scrip has been refused to answer, an analyst with a believe should have been done earlier. under-performing the market in the brokerage firm says Airtel may not fire This had enabled Jio to get the back- last one year – all visible chinks in its the first salvo as, even without a fur- ing of the likes of Microsoft, Google, financial armour. “Return on capital ther hike, its revenue has consistently Facebook and others, and its valua- is low for the entire industry. Our net gone up for the last five quarters; it tion around the middle of the last year debt to EBIDTA ratio is coming down has also garnered more post-paid and was quoted at a staggering $70 billion. every quarter. It is not a serious con- 4G customers. Probably, in this game Airtel with somewhat similar digital cern right now,” said a company offi- of intense rivalry, the company has portfolio and intent would have been cial when the pressures on the balance once again got back some ‘advantage an equally attractive proposition for sheet were pointed out to him. Inci- Airtel’ levers. u global tech giants. “This has intrigued dentally, last year, chairman Mit- RITWIK SINHA me as well. Probably, prominent tal in his note to shareholders had [email protected]

u 26 u April 19-May 2, 2021 Business India the magazine of the corporate world Column The ‘3 Ns’ of brand building

Build brands through good quality intentions, strategy and systems

rand building and brand marketing are intri- the objectives. Strategy is the core of any business cate processes and require good application of plan and by extension, the core of any brand mar- Bthe mind and excellent execution. Here, I rec- keting plan. ommend my trimurtis – niyat, neeti and niyam – to It is critical that a strategy is well-thought- build brands and have effective brand marketing. out, which is why I give a lot of emphasis to niti. Many a time, brand marketing goes off-track This could be for the brand, advertising, pric- and is not able to achieve the desired results in the ing, distribution, promotion, customer service, growth of brand awareness, its trials, repeats, sales, sales, product and, of course, any other element market share and profit. Why? The reason is that, jagdeep kapoor in the brand marketing mix, which needs to be though attempts are made to enable growth of rep- thought-out and be conceived, so that it is prop- utation, top line as also bottom line, it is done with- erly perceived by the customers and consumers. out a cohesive plan. Whether it be neeti in brand marketing or rann neeti My recommended trimurtis – the ‘3 Ns’ – which in war, strategy is critical to achieve success and meet should help sort out the problem are: good niyat, the objectives set. Many a time, companies fall flat good neeti and good niyam. Good niyat means good because they have no strategy or a wrong strategy. intention. If work is begun with good intentions, it This is an important ingredient of my trimurti, is a good start. In management terms, intentions because, whether it be the intangibles or the tangi- can also be translated into objectives. If the objec- bles in a brand marketing mix; whether it be strategy tives have good intentions, then you have already relating to positioning or segmentation; whether it chosen the right path. Good news or good inten- be strategy relating to innovation or a unique pio- tions means that you want to serve the consumers, neering – all need to be well thought-out. you want to have transparency; have authenticity in The third ‘N’ of my trimurti is niyam, which means your products or service; and have genuineness in systems. Even if intentions are good (niyat) and strat- your approach not only in the journey, but also for egies, appropriate (niti), if they are not implemented the destination. If the intentions are not good, then well through good systems (niyam), objectives would it is not a good start. Therefore, my first ‘N’ of the not be achieved. It is important to understand that trimurti is niyat. niyam completes the trimurtis, along with niyat, niti. If the niyat is not fair, then any business or, for In any deal, implementation and execution are that matter, any function – be it marketing, finance, as important as intentions and strategy. And good production or human resources management – can implementation can take place only through good fall flat, because the start was not honest, appropri- systems. The systems could be in the field of sales ate and fair. and distribution; or in the think tank of positioning, Therefore, organisations like the Council for segmentation and even pricing strategies. The sys- Fair Business Practices (CFBP), encourages organ- tems could even be in the field of creativity, because isations to follow the business practices with good disciplined creativity gives better results than just ad intentions and also rewards them for doing it on hoc adjustments. Or, the systems could be in the field an annual basis. The starting point of any effective of customer service or promotions or even educating brand marketing activity has to be good intentions. consumers about the benefits of the brand or about a If the niyat is good and fair and pure, the year new concept in the field. ahead would be prosperous for everyone. However, Without niyam (systems), there cannot be effec- niyat or good intention should be thought through, tive implementation and, therefore, the entire pro- whether it be for consumers, distributors, franchi- cess of the trimurtis of ‘N’s would remain incomplete. sees, vendors, retailers, online or offline deals or B2B Precise implementation can happen only through or B2C or any other aspect of brand marketing. This proper systems and, therefore, just like the army, starting point is critical in establishing the founda- there has to be discipline, with systems properly fol- tion (neev) of good brand marketing. lowed, before success can be achieved. The second N of my trimurti is neeti, which means So, to be successful in brand marketing strategy, I would strongly recommend my trimurtis of ‘N’s – strategy. Strategy is the art of saying ‘no’ to many The author is cmd, paths and choosing to say ‘yes’ to the one right path. Samsika Marketing niyat, neeti and niyam. One without the other two is Several companies could have the same desire to Consultants. He can be incomplete and, hence, an integrated brand market- reach the same destination, but would choose dif- reached at ing strategy with the three Ns increases the chances ferent paths. That is when strategy comes into play. [email protected] and probabilities of success. Strategy is defined and designed and refined to meet Happy brand building! u

u 27 u april 19-may 2, 2021 Special Report Business India u the magazine of the corporate world The hunt for semi-conductors

India now understands that being dependent on global pandemic. A massive surge in demand supply chains for something as critical as chips is not wise for consumer electronics, globally, due to work from home practices adopted by firms and a sharp uptick in personal recent news report by Reuters cre- but the country lags far behind others vehicle sales amid the virus fear caused ated a flutter in business circles: in manufacturing chips. The Modi gov- the crisis. Bulk orders placed by Chi- AI ndia is offering more than $1 bil- ernment is now trying to rectify the sit- nese smartphone maker Huawei to cir- lion in cash to each semiconductor com- uation. However, this isn’t the first time cumvent a ban imposed by the US also pany that sets up manufacturing units in India is trying to build semiconductors. crippled the supply of essential com- the country. Such cash hand-outs, even “We have missed every bus instead of ponents, including chipsets, to smart- for a government which goes by its own growing step by step,” an observer puts phone makers. In India, operations of whims rather than the set rules, are rare. it. domestic mobile set manufacturers like The agency quoted an unnamed gov- India has been goaded into action Lava and Micromax almost stuttered to ernment official saying that the govern- by the post-Covid crunch in semicon- a halt after their chipset supplier Medi- ment will be a buyer and there will also ductors, which hit an array of industries aTek, a Taiwanese company, ran out of be mandates in the private market (for after production resumed in factories stock. The acceleration of global 5G roll- companies to buy locally-made chips). last year, after the lifting of lockdowns outs was also a contributing factor. The idea, it was explained, was to build imposed to fight the pandemic. Indeed, The shortages exposed the myth of on India’s success in the smartphone as economies worldwide started recov- India’s self-reliance which began when assembly industry and strengthen the ering from the pandemic-hit lows, they the Indira Gandhi government set up entire electronics supply chain. had no idea that another challenge was the Semiconductor Complex Limited Following the success of mobile man- waiting for them. From electronic appli- (SCL), which started a fabrication unit ufacturing in India, now only second to ance makers to car manufacturers and in Chandigarh in 1983. However, a mys- China, the Modi government believes it mobile makers – all had to hold back terious fire in 1989 knocked out the fab- is time to set up chip fabrication compa- the production after the $450 billion rication unit (fab) until 1997. The cause nies in the country. Indian engineers are industry for semiconductors got rav- of the fire is still unknown, but there said to be good in semiconductor design aged by the after effects of the Covid-19 are suspicions of arson, since SCL was

u 28 u april 19-may 2, 2021 Business India u the magazine of the corporate world Special Report designing and developing technology for the military at the time. India’s only major VLSI (very large-scale integra- tion) fabrication facility was once eyed by global players like Motorola, STMi- croelectronics and Matsushita. But gov- ernment delays in finding a private partner or disinvesting the company resulted in lost opportunities. “Potential partners cannot wait for long. The pro- posal for a joint venture in design, for instance, could have given SCL a path into the global market. For a country with a growing design services indus- try, SCL is also hampered by its inabil- ity to retain experienced engineers. Pay revisions at SCL were scheduled to kick in during 1997, but impatient engineers Mehrotra: agreed to partner the government Saraswat: time to make investments began leaving for design houses in India or overseas at salaries that begin 150 per raise $1.5 billion from the Gulf region as government in setting up a Centre of cent above those paid by the fab,” recalls feeder fund, the remaining $500 million Excellence in memory and storage sys- a former senior executive in SCL. has already been secured by Next Orbit tems in India. Micron has front-end Successive governments wanted to Ventures Fund II from a consortium fabs manufacturing facilities in Sin- rope in Intel but the American major of investors involving both the Indian gapore, Japan, Taiwan and the US. Its refused to part with its latest generation government and UHNIs. Later, it signed back-end manufacturing facilities are technology. Intel was always willing to agreements with technology providers in Taiwan, Malaysia, Singapore, and give technology that was one or two UMC (Taiwan), AMD (US), TowerJazz China. Globally, there are only a hand- generations old. India wanted the latest, (US) and Centrotherm PV (Germany) as ful of companies that actually do front- so Intel went to Malaysia. Texas Instru- technology licensees for its projects. Yet end leading-edge manufacturing at ments recognised the value of India for the project is yet to materialise. scale and Micron is one of them. global research and development (R&D) In the past, India’s efforts to woo The dilemma of Micron, which as early as in 1985. Attracted by the semiconductor players were deterred plans to spend $9 billion this year, is country’s engineering talent, it estab- by India’s wobbly infrastructure, unsta- the same as that of other chip majors. lished an R&D centre in Bengaluru, ble power supply, bureaucracy and poor It shows the difficulty for semiconduc- the first global technology company to planning. As such, India finds itself in tor companies that choose to continue do so. While chip makers like TI have a not-too-happy position in this regard. to make their own chips in multibil- been eyeing the growing local market While it has a decent chip design talent, lion-dollar fabrication plants. When in India, they had no plans to set up it never built up fab capacity. The ISRO demand shows, the plants are idled, a manufacturing base here, primarily has a fab foundry and the DRDO has or slowed to make fewer chips, but the because a chip making facility or a fab one too. But they are primarily for the cost to run them remains the same. is a very expensive proposition running requirements of the respective organisa- The meeting almost coincided with into several billions of dollars. tions and also not as sophisticated as the the Ministry of Electronics & Infor- Domestic efforts too faltered. In latest in the world. mation Technology (MEITY) inviting 2006, Bengaluru-based SemIndia signed expressions of interest for setting up a contract with the Andhra Pradesh gov- Tata too wants to chip in or expanding existing semiconductor ernment to set up a wafer manufactur- Hence, the renewed government push wafer or device fabrication facilities in ing unit for which, it was allocated 1,200 to lure chipmakers to set up manufac- the country or even semiconductor fabs acres of land, but the $3 billion project turing facilities following the success outside India. According to officials, the could not take off. The government suf- of the smartphone industry. Moreover, response to the EoIs, with the deadline fered a loss of R300 crore. domestic conglomerates such as the for these proposals now being extended For some time now, it has been Tata Group, which have also expressed up to 30 April, has been ‘good’ and reported that a consortium of investors interest in moving into electronics and shows “that we are really serious now”. led by Abu Dhabi-based fund Next Orbit high-tech manufacturing, could also V.K. Saraswat, former head, DRDO & Ventures has reportedly shown interest be won over. now member, Niti Aayog, says that pre- in setting up fabs in Andhra Pradesh In December last year, Electronics vious attempts to establish chip fabs and Gujarat. In 2017, Next Orbit Ven- and IT minister Ravi Shankar Prasad failed because the government’s policy tures announced the launch of $2 bil- met Sanjay Mehrotra, CEO, Micron was to reimburse costs only after the pri- lion fund for building semiconductors Technologies, the US-based memory vate sector set up a project. “The govern- and electronics fab ecosystem in India. chipmaker and a major supplier to ment has realised that there is no way Next Orbit then said that it intends to Apple. Micron agreed to partner the other than make upfront investments.”

u 29 u april 19-may 2, 2021 Special Report Business India u the magazine of the corporate world s s s a a a nj nj nj ay bo ay bo ay bo ra ra ra de de de

Chandrasekaran, Kalyani, Goenka and Vembu: part of the empowered committee for manufacturing in high technology areas

Raghav Gupta, investment specialist, non-profit National Skill Development 2016, an electropreneur park was inau- Invest India, the promotion and facilita- Corporation (NSDC) to impart educa- gurated at the University of Delhi’s (DU) tions agency for investors, adds that no tion and training regarding semicon- South Campus to incubate 50 early successful semiconductor ecosystem has ductors to young talents for the purpose stage start-ups and lead to the creation come up anywhere in the world with- of developing India’s electronics manu- of at least five global companies over a out significant government support. facturing ecosystem. US semi-conduc- period of five years. The government However, as the Reuters story said, “how tor company Freescale merged into NXP has approved a Scheme for the Promo- to disburse the cash incentives has yet Semiconductors in 2015. US engineer- tion of Manufacturing of Electronic to be decided and the government has ing firmA ricent acquired Bengaluru’s Components & Semiconductors (SPECS) asked the industry for feedback.” The chip design services company Smart- and a Production Linked Incentive (PLI) global majors being targeted include Tai- Play for $163 million, making this the scheme for 13 critical sectors, such as wanese leaders Taiwan Semiconductor largest acquisition in the space in India. telecom, automobiles, etc. Manufacturing Co (TSMC), VIA Tech- For the development of trade and tech- State governments have also pitched nologies Inc and United Microelectron- nical cooperation in the semiconductor in. The government of Telangana has ics Corporation; US giants Intel, Micron industries between India and Singapore, planned to launch T works, India’s larg- Technology Inc, NXP Semiconductors, India Electronics and Semiconductor est prototyping centre, in Hyderabad and Texas Instruments; and Japanese Association (IESA) and the Singapore for the purpose of acting as a prototyp- players Fuji Electric Co and Panasonic; Semiconductor Industry Association ing centre for semiconductors. The gov- apart from European players as well. (SSIA) have signed a memorandum of ernment of Gujarat has planned to set But, will the government’s strategy understanding. up a new electronics manufacturing work this time? Part of the problem has On the policy front, to give a boost hub in the state, following the launch been investment required and the tech- to the semiconductor industry, the of its electronics policy in 2016, and is nology that needs to be mastered. The Union Budget 2017-18 had increased expected to generate around 500,000 latest TSMC state-of-the-art fab unit the allocation for incentive schemes, jobs in the electronics sector in the next costs over $13 billion to build. Even such as the Modified Special Incentive five years. But it is MEITY’s proposed smaller and less sophisticated foundries Package Scheme (M-SIPS) and the Elec- push to provide the initial capital that would require several billion dollars of tronic Department Fund (EDF), to $111 is meant to attract more private players investment. Fab plants also require a lot million. To ensure further investments and push India to become a global hub of land, clean water, stable power and a in the industry, create employment for semiconductors. highly skilled workforce. Above all, fab opportunities, and reduce dependence companies look at the long term – 10 on imports by 2020, the government The DNA of new age gadgets to 15 years – when deciding on geogra- amended the M-SIPS by approving new What exactly is a semi-conductor and phy. They need policy stability, assured incentives for investors, worth $1.47 bil- why is it in demand suddenly? At the demand and long-term incentives. lion. The federal government has set up core of any electronic device is the pro- Industry observers point out that an empowered committee for manufac- cessor built from materials which have many pieces of the jigsaw have been turing in high technology areas, which conductivity between conductors (gen- falling in place for some time now to will be headed by the minister of Com- erally metals) and insulators (such as form the ecosystem required to man- merce and Industry, and notable peo- most ceramics). Semiconductors can be ufacture semiconductors within the ple from the Indian industry, including pure elements, such as silicon or ger- country. Californian product engineer- Tata Sons chairman N. Chandrasek- manium, or compounds such as gal- ing company INVECAS has planned to aran, Bharat Forge Chairman Baba lium arsenide or cadmium selenide. invest in design centers in Bengaluru Kalyani, Mahindra Group managing For example, temperature sensors used and Hyderabad over the next few years. director and CEO Pawan Goenka, Zoho in air-conditioners are made with semi- German semi-conductor firm Infineon Corp CEO Sridhar Vembu, and semicon- conductors. Rice cookers cook rice per- Technologies has partnered with the ductor expert Anshuman Tripathi. In fectly because semiconductors control

u 30 u april 19-may 2, 2021 Business India u the magazine of the corporate world Special Report the temperature precisely. In short, what are called compound semiconduc- semiconductors form the DNA of a wide Projects encouraged tors those made of two or more elements, variety of new-age gadgets like smart- Category A: Well-established integrated like allium nitride, allium arsenide, sili- phones, computers, industrial equip- device manufacturers (IDMs)/found- con carbide. These are used in a variety ment and cars. They are also sought for ries/Indian company or consortium with of media products, and these fabs cost emerging markets of AI, computing and Indian Industry partner much less set up than the traditional advanced wireless networks. Having state-of-the-art mainstream com- fabs. If India progresses in this direc- A chip manufacturing plant is a plementary metal-oxide-semiconductor tion, surely in the coming few years, resource-intensive task but ultimately (CMOS) technology nodes for fabricat- India could indeed setup a semicon- drives investment from various com- ing processors, memories, analog/digi- ductor plant, which in turn will attract panies who use these wafers to make tal/mixed signal integrated circuits companies to invest in the soil. In a processors, GPUs, mobile SoCs and a Desirous of setting up/expanding exist- fast pacing digital world, this could be lot more. India heavily relies on Tai- ing semi-conductor fabs in India (pref- a game-changing move, if India some- wan for semiconductors; so, does the erably with a node size of 28 million or how manages to do things in a right way rest of the world. But a country like lower, wafer size of 300mn and a capac- possible. India has the labour to support a ity of 30,000 WSPM or more) However, aware that any large-scale chip plant. Category B: Well established Integrated dependence on Taiwan would be dan- Governments across the world are Device Manufacturers (IDMs)/found- gerous, India like the rest of the world subsidising the construction of semi- ries/Indian company or consortium with is thinking anew. TSMC’s chip facto- conductor plants as chip shortages hob- Indian Industry partner ries could become collateral damage, ble the auto and electronics industries Having state-of-the-art compound semi- if China were to make good its threats and highlight the world’s dependence conductor-based emerging technolo- to invade Taiwan, if it moves toward on Taiwan for supplies. The Taiwanese gies for fabricating high frequency/ high independence. semiconductor industry evolved from power/opto-electronics devices being job-shops for other firms into a Desirous of setting up/expanding exist- New urgency multibillion dollar industry. According ing semiconductor fabs in India (prefer- Taiwan’s grip on the semiconductor to TrendForce, the global market intel- ably a wafer size of 200 million or more) business – despite being under con- ligence firm, TSMC commanded 54 per Category C: Indian Companies/Consortia stant threat of invasion from China cent of the global foundry revenues of interested in the acquisition of semicon- – also represents a choke point in the $86.65 billion in 2020. Taiwan drew ductor FABs outside India global supply chain that’s giving new in 64 per cent. Taiwan (which China urgency to plans from Tokyo to New regards as its province and wants the Delhi and Washington to Paris to world to avoid dealing with it as a sov- America, Europe and Asia. increase self-reliance. Last year, Chan- ereign entity) is being courted for its India accounts for 5 per cent of global cellor Angela Merkel of Germany and capacity to make leading-edge computer semiconductor demand. But, just how President Emmanuel Macron of France chips. The action centres around TSMC, important this component has become discussed the potential for shortages the world’s largest foundry and go-to is evident from the fact that the coun- and agreed on the need to accelerate producer of chips for Apple Inc, smart- try’s demand for 28 nm (a measure of Europe’s push to develop its own chip phones, artificial intelligence and high- the size of transistors in a chip) semi- industry. The European Union aims to performance computing. Taiwan’s role conductor nodes and higher ones are bolster the bloc’s ‘technological sover- in the world economy largely existed in excess of $25 billion. Experts believe eignty’ through an alliance armed ini- below the radar, until it came to recent that India’s best opportunities are in tially with as much as €30 billion ($36 prominence as the auto industry suf- fered shortfalls in chips used for every- thing from parking sensors to reducing emissions. With global carmakers including Volkswagen AG, Ford Motor Co and Toyota Motor Corp forced to slow down production and idle plants, Taiwan’s importance has suddenly become too big to ignore. The US, Euro- pean and Japanese automakers are lob- bying their governments for help, as did SIAM with the MEITY early this year. They all wanted their governments to persuade Taiwan and TSMC being to step in and fill the breach. Though TSMC opened an office in Bengaluru in 2007, its primary mission is to locally sup- port existing TSMC customers in North Infineon: tie-up with NSDC to impart education and training regarding semiconductors

u 31 u april 19-may 2, 2021 Special Report Business India u the magazine of the corporate world

a lot of production capacity, its demand outstrips its supplies and lately, it has depended heavily on global suppliers in South Korea, China and Taiwan. In China, the government is ramping up capabilities too. Till recently, China was considered to be lagging behind the US when it came to chip designs. And it was also behind Taiwan, South Korea and the US in terms of sophisticated fabs that churn out the most advanced chips. China has many foundries but Taiwan and South Korea’s newest fabs are far more advanced. One thing that has turned in India’s favour is the growing consumption. While India currently accounts for 5 per cent of the world’s chip demand, TSMC: the world’s largest foundry and go-to producer of chips for Apple Inc the country’s consumption is growing at 25 per cent per annum. This could be billion) of public-private investment to customs duty, research and development attractive to a global fab manufacturer. raise Europe’s share of the global chip expenses and interest free loans. But that alone might not be enough. market to 20 per cent (without a target Chip production is concentrated in The government needs to look at chip date) from less than 10 per cent now. the Asia Pacific region – Taiwan, South fabrication as a strategic industry where The US, under the Trump adminis- Korea, Japan, China and Singapore. it needs to get involved and invest in, tration, had exploited the supply pinch Chip fabrication plants are running at just as China is doing. to deny Beijing access to technology. By full capacities but many analysts pre- While the government plans to banning access to all US chip technol- dict the shortage could go on till 2022 reduce its business footprint by divest- ogy including design, it was able to cut off or longer because chip demand in every ing off most non-strategic Public Sector the supply of semiconductors from TSMC device is going up. Enterprises (PSEs), it needs to remember and other foundries to Huawei Technolo- The chip business is segmented into that the original reason for setting up gies, hobbling the advance of China’s big- integrated players such as Intel that government-owned units in any coun- gest tech company. It also negotiated with design and manufacture their own try has been the need to build capacity TSMC to establish a $12 billion chip fab- chips; chip design companies such as and expertise in areas where the private rication plant in Arizona. South Korea’s Qualcomm; and pure chip fabrication sector was either unwilling or incapable. Samsung Electronics Co is set to follow, foundries, such as Taiwan Semiconduc- The DRDO and ISRO foundries only with a $10 billion facility in Austin, Texas. tor Manufacturing Co (TSMC), Global cater to their requirements. The gov- The ‘CHIPS for America Act’ introduced Foundries of the US or Semiconductor ernment could look at using one of the to Congress last year aims to encourage Manufacturing International Corpora- other PSEs – say, Bharat Electronics Ltd or more plants to be established in the US. tion (SMIC) of China. Some companies Hindustan Aeronautics Ltd – to set up a News that Intel Corp, the one-time indus- like Samsung design chips but also have foundry with the help of a global major. try leader, was considering outsourcing huge fab capacity for other designers. Allowing management a free hand in a production of some chips to TSMC under joint venture where the global major has its former CEO underscored the need Chip nationalism brought in technical expertise, as was for a US player that can fabricate at the Chip nationalism – where countries done when Maruti was originally set up leading edge. with chip capacities are trying to ensure and providing long-term policy stability India also wants to establish reliable that they tie-up supplies and stocks for along with proper incentives could well suppliers for its electronics and telecom their requirements first – is going to cre- lead to success where earlier attempts industry to cut dependence on China ate additional problems for those that do failed. Maybe the PSEs can finally play a following border skirmishes last year. not have their own production facilities. role that will redeem their image. Chips made locally will be designated as In the US, both Republicans and India is only now understanding ‘trusted sources’ and can be used in prod- Democrats are worried enough about what the US, China, South Korea and ucts ranging from CCTV cameras to 5G the chip shortage to propose a law Japan have long known – that being equipment. The government estimates it that will allocate billions of dollars entirely dependent on global sup- would cost $5-7 billion to set up a chip to increase development and manu- ply chains for something as critical fabrication unit in India and take 2-3 facturing of chips in the nation and as chips, which are at the heart of all years after all the approvals are in place. reduce outside dependence. President modern machines, is not a wise policy. Besides the cash handout, New Delhi is Joe Biden’s recent meeting with CEOs of Better late than never! u also said to be willing to offer compa- chip companies and auto giants was a Rakesh Joshi nies concessions, including waivers on step in this direction. Though the US has [email protected]

u 32 u april 19-may 2, 2021 Business India u the magazine of the corporate world Column The new normal for board meetings

Boardrooms could be VR versions of attendees sitting together around a virtual board table

ow that we know the Covid pandemic is a seem clumsy. Micro agendas, convening the board for game changer in comparison with other cri- 30 minutes at a time on one item, will be arranged Nses that come and go, businesses and econo- by intelligent tech that checks and juggles each board mies are talking of various alphabets from K to V and member’s schedule. Instead of holding up the board W to describe the different situations that are evolv- book mailing for last-minute items, each session will ing in waves across the globe. Businesses have moved have its own board book, and a digital assistant will beyond cobbling together short-term solutions into tell members when it is available, and use AI to point long-term rethinking of processes and structures. up important items. Isn’t this socially-distant sanitised form of business D r M. Muneer The board chair will also gain digital tools to (or way of life, for that matter) our long-term reality – help run meetings. What is the best way to prioritise orthe new normal – evenwith vaccination? agenda items? Who hasn’t spoken up and who’s dom- Board meeting, as we know it, has changed in the inating the discussion? The chair has allotted 15 min- last few quarters. The question is how this new nor- utes for this item on the agenda, but now it’s pushing mal would alter corporate governance. Remember the to half an hour. An AI timekeeper signals the chair last proper meeting of your board – gathered around on all of these, perhaps even giving a graph on which the table, flipping through your board book, the chair speakers have the most ‘air time’. Meeting on for too saying ‘next item on the agenda’, sitting through pre- long? The software can remind everyone, when it’s sentations, shooting comments back and forth? time to get up and stretch. Despite all the technology and speed that have Ralph Ward Board meeting tech will become even more sup- reinvented global business over the decades, many portive (or creepy, depending on your viewpoint). of our corporate forms are still archaic. Read a 2020 AI monitoring of directors’ facial expressions, pos- legal brief, and the language and style are relics of ture and voice tone can tell who’s bored or zoned out, the last century. Some of the world’s stock and com- when participation is lagging, or when a presenta- modity exchanges still have shouters and runners on tion is dragging. The chair will be able to gauge these a crowded trading floor. But even before the Covid “viewership ratings” in real time during the meeting. crisis, stock exchanges in most developed countries None of us like having our enthusiasm constantly had gone electronic, and trades moved at the speed of graded, but the unique membership of the board light. So, what about the retro idea of gathering busy could push back on any Big Brother abuses. If a mem- executives around a board table? ber of the board finds your meeting content boring, We are not the only ones who are wondering if a the director isn’t the one who’s in trouble. shift to virtual board meetings and to governance, The new board tech should be able to keep mem- overall, is the future. Online board sessions make bers more focussed anyway. Rather than separate on- the wired director a one-person network, tuned in screen boxes with presentations, board book info, to other members, presentations, resource materials, financials, etc, these items will be immersive, part outside research and side chats – all at once. Even with of the total visual presentation on screen, and prob- board portals, the board ‘book’ is still largely designed ably with virtual reality tools. The board meeting as a single package of info, rather than as the hyper- could include VR plant tours, on-site discussion with linked document it could be. employees and customers, walk-throughs of produc- We can’t predict that the traditional ‘sit down tion or logistics issues. The board should be able to around a mahogany table’ boardroom meeting is have meetings on Mars, or see what really happens at dead. Besides, virtual board meetings seem to be more the company’s deep-sea oil-rig. efficient and cost-effective in many ways; so, why not M. Muneer is MD, At the moment, your online board meetings con- continue with the same? CustomerLab and sist of postage-stamp size images of attendees, who Virtual board and committee meetings are about co-founder, Medici are all squinting at their screens. Background ‘green to become our default, expected governance tool. In Institute, a non-profit screen’ tools can make it look like you’re sitting near 2020, virtual meets were a clumsy substitute for “real” organisation. Ralph the Taj Mahal or the Golden Gate, but these are dis- board meetings. By the end of this year, online will Ward is a global tracting. Next up could be boardroom avatars with VR have become the real board format, and face-to-face authority on boards; versions of attendees actually sitting together around will seem odd, and awkward. both of them drive a virtual board table. The chair really gets to sit at the However, the process is pointing towards the board alignment head of the table, the CEO at her side, and so on. We future – board meetings will be on-demand, modu- for corporations. regain the context and subtleties of an in-person board lar, ‘drip feed’ affairs. The big, singular ‘board book’ a Contact: Muneer@ meeting and you can even be a cartoon character, if week before a discrete, day-long ‘board meeting’ will mediciinstitute.org you want. Talk of getting younger in boardrooms! u

u 33 u april 19-may 2, 2021 Corporate Reports Business India u the magazine of the corporate world Creating communities

Columbia Pacific Communities is all geared up to Tamil Nadu-based Serene Senior Care, explore India’s senior living space which was managing these communi- ties. While it is managing these proj- ects, CPC has already launched its 10th olumbia Pacific Communities the next five years. As per an estimate, senior living project in India named (CPC), a part of the Columbia India will be home to over 173 million ‘The Virtuoso Club and Serviced Res- CPacific group, has now decided senior citizens by 2026 and 300 mil- idences’ in Bengaluru. This is the first to aggressively expand its base in India. lion by 2050. India sees seniors forming time the company is developing a proj- Having entered India in 2017, CPC is 8 per cent (100 million) of the popula- ect in India on its own. already one of the largest and most tion. With limited supply from Grade experienced senior living community A developers, there is an urgent need to Well-designed products operators in India, with over 1,600 resi- cater to this segment with well-designed The company offers its projects under dential units under management in five and fully-serviced facilities. CPC has two brand names ‘Serene by Colum- cities and nine locations across south now decided to go pan-India – though, bia Pacific’, which includes the legacy India. One of the foremost developers initially, the focus will be on Tier I cities. Serene properties and others that will be and operators of senior living commu- While doing so, the company is also created for a mid-range price point; and nities in the US, Europe and Asia and looking for partnering with local realty ‘Columbia Pacific Signature’, which is the promoter of Columbia Asia Hospi- developers in India. Part of entrepre- the premium brand for the upper-mid- tals, a pioneering healthcare service pro- neur and senior living pioneer Dan dle-class consumer. Backed by a core vider, the group has 11 hospitals (over Baty’s Columbia Pacific, it has more team of professionals and a workforce 1,000 beds) in India under the brand, than 40 years of experience and exper- of 650-odd employees, CPC is looking Columbia Asia Hospitals. tise in designing, building and manag- to add 350 people to manage four pro- As part of its newly-formulated ing senior housing communities around posed projects in the current fiscal year. strategy keeping in mind the growing the world. “India is an emerging market for demand for this new asset class going CPC has nine operational senior liv- the senior living space and, at Colum- ahead, the Seattle-based group’s Indian ing projects, of which four are in Coim- bia Pacific Communities, we are geared entity, with its corporate office in Beng- batore, two in Chennai and one each in up to explore all opportunities,” affirms aluru, is now firming up a comprehen- Bengaluru, Kanchipuram and Puduch- Mohit Nirula, 55, CEO, Columbia Pacific sive plan to launch four-five projects erry. The management of these nine Communities. “Our parent group has every year. In fact, the company is look- projects came into its portfolio when been in this business for more than four ing to ramp up its management portfo- it entered into senior living housing in decades now and we want to replicate lio to about 5,000 residential units in India in 2017, with the acquisition of our global success stories in India as well.

u 34 u april 19-may 2, 2021 Business India u the magazine of the corporate world Corporate Reports

We benefit from our group’s experience in designing, building and managing senior living communities and health- care services across the world. In the last few years, we have built our capabil- ities and we are now ready to serve this market with our well-designed products for seniors.” “We started in the US, where we have built over 500 facilities, designed and operated for seniors,” says Baty, 77, founder & chairman, Columbia Pacific Group. “We have also been one of the largest operators of senior housing in the country. Columbia Pacific has also been investing abroad for more than 30 years now, whenever a particular need, which no one else can fill, is identified. In the 1980s, it was senior care in the UK and France. In the 1990s, we built Columbia Asia Hospitals in South East Nirula: exploring opportunities Baty: building a lasting legacy Asia and India. Now, we are turning to Columbia Pacific Communities. We comprehensive wealth management caring environment to live in indepen- believe the opportunity for retirement firm, with the ability to work closely dence without the pressures of main- living in India is vast. And, everywhere, with clients and develop tailored solu- taining a full-fledged home,” contends we take pride in building and operat- tions to preserve, build, and transition Aditya Virwani, COO, Embassy Group. ing communities in which seniors can wealth. “With the current pandemic and uncer- really thrive. It’s so important to have tainty, we are striving all the more social interaction as we age.” Baty, along Betting big on India to make the later years for our seniors with his sons, Stanley and Brandon, had CPC is now betting big on the Indian rewarding and fulfilling, by providing formed the holding company, Columbia market. The company has tied up with them an enhanced lifestyle and peace Pacific Management (CPM), as a family Bengaluru-based Embassy Group, even of mind for their families, which is venture in 1989. Apart from oversee- as some more partnerships with other truly priceless. In line with our vision of ing the group’s international health- developers, including the Adani Group, ‘Embassy Cares’, our senior living spaces care business, CPM also develops as well Nyati Group of Pune and Kolkata’s are focussed on building the entire eco- as operates hospitals, clinics and senior Ambuja Neotia group are in the pipe- system to meet their aspirations and housing. line. Experts are of the view that such safety needs. We are excited to bring Looking at the demographic trends, partnerships will help CPC expand its in this new asset class and see our first Baty, who has been successfully invest- base in India quickly in an asset-light project to fruition along with Columbia ing in and developing private com- model. While CPC is present across Pacific Communities.” panies for over 40 years, established the value chain (designing, develop- “We are entirely committed to build- CPM’s foundation of improving lives by ment and managing) of the senior liv- ing and nurturing communities for assessing the healthcare and senior liv- ing space, it will lay greater stress on the seniors, as we believe that community ing needs of communities worldwide. designing and managing of such com- living, and social engagement is the Throughout its existence, CPM has deliv- munities in India. strongest antidote to loneliness and a ered compelling investment results, “In India, senior living is an emerg- wonderful enabler of ‘positive ageing’”, while building a lasting legacy through ing area and, for CPC to pursue partner- argues Nirula. “Residents can expect companies such as Emeritus, Hillhaven, ship models, is a strategic move as it will to find an environment that encour- and Holiday Retirement. These compa- help expand its business quickly in the ages them to remain physically fit, men- nies have led the industry and set the market,” says Ambar Maheshwari, CEO, tally alert and emotionally stimulated. pace for senior living worldwide. Indiabulls Asset Management Co Ltd. Further, in an increasingly vulnerable In 2006, CPM launched Columbia “Moreover, it will also help it focus on world, communities are the safest and Pacific Advisors, an alternative invest- its core competencies, such as design- the most secure places for seniors to live ment platform for the Baty family and a ing, operating and managing such in. The appreciation of having a com- select number of outside investors. CPA communities. On the other hand, devel- munity stand with and behind you pro- manages investments across a range of opers with development skill and local vides peace of mind to the residents and real estate, opportunistic, direct lending knowledge will get the opportunity to a sense of relief to their families. We and hedged strategies. In 2011, it was get into this new asset class in a more are delighted to be able to create such followed by the formation of Colum- seamless manner.” an environment with a credible part- bia Pacific Wealth Management, a “Our senior citizens seek a secure, ner such as the Embassy Group as this

u 35 u april 19-may 2, 2021 Corporate Reports Business India u the magazine of the corporate world

for the JV route with reputed develop- Creating an environment that encourages ers. This also provides more resources seniors to remain physically fit and for designing, managing and operating emotionally stimulated the properties (rather than developing), something where CPC is a global leader. “For us, senior living is not real estate but more of hospitality and healthcare play,” adds Nirula, who started his career in hospitality with The Oberoi Group in 1986. Since 1996, he has been in leader- ship roles, heading hotels across brands (Novotel, Trident, Oberoi); geographies (India, Mauritius, Egypt); and a diverse range of responsibilities in operations (openings, renovations and restora- tions). In February 2018, he joined CPC as CEO and has, since then, been lead- ing a dynamic team of people engaged in designing, building, selling, opening and operating communities for elders. association is to the ultimate benefit of 24-hour assistance. A hotel management graduate, he has our residents,” Nirula adds. “The evolving lifestyle in urban over 30 years of experience in the hos- “We are excited about embarking on centres has created a need for self-suf- pitality business. this venture with the Embassy Group ficient and socially engaged communi- “Our focus is to provide a lifestyle in Bengaluru,” comments Carsten ties, where the superannuated can lead that is enabling, active and stimulating, Belanich, lead, international senior a healthy and contented life,” adds Vir- while enveloping our residents in an housing, Columbia Pacific Manage- wani. “Embassy is keen to serve this environment of genuine warmth and ment, Inc. “Our companies’ strengths segment with a vision to expand to care,” says Nirula. “While managing – across design, development, and Chennai, Hyderabad and Mumbai, with and operating, we are also known for operations – complement each other. 3,000 units by 2023.” our services in healthcare to our elders. The result will be an outstanding new As a group, we are also a leading player option for seniors in Bengaluru, provid- International standards in the healthcare space.” ing world-class comfort, security and “The joint venture with the Embassy CPC has partnered with 1mg, – most importantly – a truly vibrant Group is a strategic collaboration to India’s leading digital healthcare plat- community in which to live.” bring world-class senior living com- form, to offer curated healthcare ben- CPC and the Embassy Group’s first munities into India, with fully serviced efits to its residents. 1mg will be the senior living project will be launched residences designed to international official e-healthcare partner of CPC at Embassy Springs, Bengaluru’s standards,” contends Nirula. “CPC has for all its present and future communi- biggest and best-planned self-sus- pioneered the concept of community ties, going forward. Through this part- tained community in north Bengal- living for seniors across the world and nership, senior residents of CPC will uru, spread across 288 acres. The first has already brought to the country its have effortless access to over 250,000 phase, to be launched by Q2 2021-22, first senior living community designed authentic medicines and health prod- will have around 250 units in 1-2 BHK to international standards.” ucts at 1mg at special prices, along formats, with unit sizes of 600-1,000 He believes there has never been a with a complete portfolio of diagnos- sq ft carpet area. more apt time than now for senior liv- tic tests, medical advice from leading Embassy Group, backed by CPC, aims ing communities. The post Covid world experts, Covid-19 testing and support, to make senior living a mainstream con- will see an increased demand for com- and much more. The partnership will cept in India. The senior living facilities munity living, because it’s a community also result in residents enjoying spe- will be designed to meet international that stands by you in times of crisis. A cialised engaging programmes such standards and offer the finest of ame- senior living community is not only as health webinars, health camps, and nities. In order to make residents live self-sustained, but it also caters to the ask-me-anything sessions with doctors healthier for longer, the communities immediate needs of its residents, includ- and healthcare experts. will offer a packed calendar of resident ing healthcare and other essentials, “Senior citizens are a vital part of engagement events such as book read- in a highly controlled and sanitised our ecosystem and it is important that ings, yoga and mindfulness sessions, environment. we recognise their unique needs and drumming sessions, pottery and sto- Moreover, Nirula is of the opinion provide them personalised and easy- rytelling workshops, etc. Beside senior- that it is always better to create these to-access healthcare,” remarks Vikas friendly amenities and medical support, kinds of communities within an inte- Chauhan, co-founder, 1mg, comment- the communities will be fully serviced grated development/township and ing on this new association. “We always in providing food, housekeeping and that is the reason CPC is also looking strive to offer the best user experience

u 36 u april 19-may 2, 2021 Business India u the magazine of the corporate world Corporate Reports for all customers – and we are excited government after the current pan- about the opportunity to serve this Helping seniors live healthier for longer demic crisis as families struggle to important segment, and the difference cope with both access to infrastruc- we can make to the lives and lifestyles ture and health care facilities,” says of residents of CPC.” Ajay Sharma, managing director, valu- Nirula feels that healthcare for ation services, Colliers India. “Further, seniors cannot be generalised. It requires the industry should be highly regu- a certain degree of personalisation, com- lated with norms laid down, and to passion and attention to detail. So, lever- promote this the government should aging a specialist healthcare platform provide tax subsidies to going con- gives them the access to quality ser- cerns created by investors and devel- vices almost instantly, within the com- opers of such communities.” fort and safety of their homes. “We are To safeguard the rights of seniors, delighted to partner with India’s lead- the Central ministry for social justice & ing digital healthcare platform, 1mg, empowerment has defined models for as it will empower our residents, amidst operating and monitoring retirement uncertainties, to get access to best-in- homes. While the framework is based class and round-the-clock healthcare on regulations and guidelines for resi- services. With this partnership, we are dential real estate, of which senior living strengthening our promise of helping is a part, the norms acknowledge that seniors live healthier for longer, which (11 projects in Coimbatore, Bengal- senior living developments differ from is an extension of our brand philosophy uru, Mysuru, Pondicherry); Delhi-based conventional housing and have special of ‘positive’ ageing,” he adds. Ashiana Senior Living (four projects in requirements. Meanwhile, while CPC now man- Bhiwadi, Chennai, Jaipur, Pune), south- “Due to the rise of nuclear families, ages nine projects under its portfolio, based Bahri Estates (four projects in increased life expectancy and people it has already launched its 10th senior Kodaikanal, Bengaluru); Oasis Senior living across geographies, ‘independent living project in India named ‘The Vir- Living (three projects in Pune, Bhopal) seniors’ are becoming a new demogra- tuoso Club and Serviced Residences’ in and Max India’s Antara (two projects in phy,” says Anuj Puri, chairman, Anarock Bengaluru. This independent senior-liv- Noida, Dehra Dun). Moreover, there are Property Consultants. “Such seniors do ing community project, with 158 resi- traditional realty developers like Tata not settle for traditional old-age homes dential units (price range: R39 lakh-1.1 Housing (one project, Bengaluru) and as they prefer – and can afford – auton- crore), is coming up in Budigere Cross, Brigade Group (four projects in Bengal- omy and the company of age peers in Old Madras Road, Bengaluru, and is uru) which have also entered the space. well-equipped retirement communities. expected to be ready by the end of 2023. A recurring theme of this pandemic has This will be the first project inI ndia, Policy support been seniors living alone, struggling for where the company is developing the “The trend of nuclear families has seen basics, managing without house help project on its own. a steep surge in the last few decades and and anxious about existing and poten- Amenities at this project are tailor- led to the emergence of the concept of tial medical issues. The need for homes made for an independent senior-liv- ‘senior living’,” says Ankur Gupta, JMD, in a setting where these factors are taken ing environment. It includes a fully Ashiana Housing. “The Covid-19 pan- care of is now undeniable.” equipped clubhouse, landscaped gar- demic has disrupted the lives of senior With all these developments in place, dens, gymnasium, swimming pool, rec- citizens living independently and expe- senior living is all set to emerge as one reation club, terrace lounge & rooftop dited the focus on senior living facilities of the promising asset classes within the amenities and wellness centre. There are like never before. With improved regu- realty space. Though still at a nascent plans for available services to include latory and policy support from the gov- stage, all the factors are quite favour- housekeeping, three meals a day served ernment and adequate investment from able in this regard and a player like CPC, in a restaurant setting, and a concierge industry peers, the senior care segment with its experience in this field, will play for activities and fitness. Most impor- will provide a huge fillip to India’s eco- a significant role in shaping up this busi- tantly, well designed health care sup- nomic development in the near future.” ness in India where the rise of nuclear port will also be part of CPC’s offering, Experts are of the view that senior families and other social-economic including a nurse on call, a nearby hos- care during the pandemic has shifted factors are turning out to be a trigger. pital, and an ambulance. The project the narrative from these communities Senior living is not just a real estate play features the best in CPC’s luxury living being hospitality-driven to health-care- but is a specialised business and that is segment. driven. The segment addresses the most where companies like CPC will have an While CPC has entered India, the vulnerable age group and, therefore, edge over other players. With its decades market for senior living here is also tak- requires providers to enhance health of industry experience, it can set new ing shape with local players like Pune- care offerings – something more than benchmarks in a market where the pie based Paranjape Athashri (eight senior just being a retirement home. is getting larger. u living projects in Pune, Bengaluru, “Further, senior care should be Arbind Gupta Vadodara); south-based Covai Care seen as essential infrastructure by the [email protected]

u 37 u april 19-may 2, 2021 Corporate Reports Business India u the magazine of the corporate world Back on the highway

A software company signals return to the growth with software solutions that will help road, chalking up impressive results on the home stretch mobility ‘leapfrog towards an auton- omous, clean, smart and connected of 2020-21 future’, works to accelerate development and integration of software components and software functionalities in the ‘con- nected, autonomous, shared & electrifi- cation’ (CASE) area. To achieve this, it has invested over the years in platforms, accelerators and tools that allow it to do this ‘better, quicker and efficiently’ for its clients. “From prototype and software devel- opment to validation and testing, we ensure that software works as concep- tualised in production,” says Patil. “We understand the challenges in engi- neering and various nuances that can determine produc- Pandit and Patil tion-ready software.” With have taken KPIT the automotive industry in into high-gear urgent need of deep soft- growth ware competence from the twin perspectives scale and expertise, KPIT has made just this its value proposition. This, he points out, is exactly the company’s business: to accelerate the development he Pune-headquartered KPIT has engagements with our top 25 clients, of software on one hand and making it arrested a recent slide in its for- with emphasis on creating tremendous ready for production on the other. What Ttunes with a growth in net profit value for them through leadership in comes to the fore, he says, is the team’s of nearly 50 per cent in the third quar- our practices – via platforms, tools and deep understanding of the automotive ter of 2020-21, registering a 6.7-per-cent accelerators – as well as delivery excel- industry and a strong understanding growth in its revenue in dollar terms. lence,” adds Sachin Tikekar, president of the CASE domain, better than most The independent software developer, & whole-time director of the company. other software companies. which has been concentrating on its role “Our operating performance is also Explaining that KPIT has acquired its as an integration partner to the global trending in the right direction on the domain know-how through its sharp automotive industry, has reported a net back of larger strategic engagements and focus on the automotive industry and profit of R41.8 crore for the quarter – up overall productivity improvements.” deep relationships with its clients, he smartly from R27.9 crore in the earlier Over the years, Patil explains, KPIT points out that these clients are all lead- quarter. High cash conversion also con- has chosen a more focussed approach ers in their own areas. “We conceptu- tinued during the quarter, making it the for leadership in automotive and mobil- alise features that their end-consumers eighth consecutive quarter of increase ity rather than being generalists with need most. We understand what these in net cash with DSO (day’s sales out- a higher scale in the short term. It has clients need – not only the OEMs, but standing) at an all-time low of 58 days. thus witnessed significant growth in the also their Tier I customers – and deliver “Our depth and experience in elec- space of embedded software in the auto- solutions that are tailored precisely to tric powertrain, autonomous driving motive sector. “We have been investing each one’s requirements.” These skills and digital cockpit areas are helping us as well as growing in this area for a long and domain knowledge are not readily gain traction within our strategic cli- time. As vehicles are becoming more available, so the company is a net talent ents,” says Kishor Patil, co-founder, CEO software-defined, we felt this is the time creator – and will continue to be one. & MD, KPIT. “The automotive and mobil- to focus and build a global leader in this Investing ‘significantly’ in infrastruc- ity industry is prioritising investments area. Also, with the investments grow- ture, training and competency devel- in new-age technologies, where we are ing in this area, we feel we can scale in opment, it has delivered software for at the forefront.” the medium term.” numerous production programmes. “We continue to deepen our strategic KPIT, a global technology company Global clients include big names

u 38 u April 19-May 2, 2021 Business India u the magazine of the corporate world Corporate Reports like power management company software integration partner for the Eaton, which in 2019 chose KPIT to sup- next-generation 11 kW combined port the development of next-genera- charging electronics programme pow- tion electrified mobility technologies ering the upcoming BEVs. MicroFuzzy for its e-mobility business unit. With and KPIT are responsible for the com- the Southfield, Michigan-headquar- plete development, integration, valida- tered company’s collaboration with the tion and series software maintenance, Indian company will focus initially on to accelerate the technologies a future developing and deploying technolo- electric vehicle requires. gies, software solutions and platforms In October 2018, the BMW group had for several of its components, includ- selected KPIT as a partner to press ahead ing inverters, on-board chargers, DC-DC with its scalable autonomous driving converters and power distribution mod- platform and develop higher-level func- ules. “Eaton continues to build compe- tions like Highway Pilot and Urban tencies to solve complex problems in Pilot. “Tackling this immense challenge e-mobility, which OEMs consider criti- calls for an all-embracing approach,” cal and transformative,” said its e-mobil- according to Elmar Frickenstein, senior ity president Jeff Lowinger at the time. vice president fully automated driving “KPIT is our extended team in this and driver assistance, BMW AG Munich. approach, with its sharp focus on mobil- Tikekar: creating higher value for top clients “This includes building strong alliances ity and years of experience in electric that allow us to gain valuable know- powertrain technologies. Our strategic grow to 15 million pure battery-electric how and also speed things up. In order alliance brings valuable capabilities and vehicles by 2030. to achieve our objective in 2021, we are technologies to enable manufacturers collaborating with the best technology to develop vehicles that are cleaner and The integrated charger partners in the world.” safer and deliver value.” Last year, KPIT announced the signing Beyond CASE, Patil says, KPIT will Adds Patil: “The strategic alliance res- of a large-scale order spread over sev- emerge prominently as an indepen- onates with our vision of reimagining eral years with BMW group. The com- dent software integrator and partner mobility with our customers, partners bined power-train co-ordination unit for OEMs and Tier Is. “We believe that is and people. With our complementary is designed to power the next genera- where we have our strength and leader- strengths in the automotive domain tion power electronics architecture of ship position,” he asserts. and electrification technologies, we are BMW Battery Electric Vehicles (BEVs) With defect-free software set to play geared to address some of the most com- and involves software development, a more important role than before, the plex challenges involved in the develop- integration, and maintenance. The time to market needs to be reduced, ment of electric vehicles and pave the integrated charger unit is an onboard ensuringat the same time that the soft- way for Eaton to leapfrog the competi- charger that is combined with the vehi- ware works in production the same way tion in the electric mobility space.” cle control unit. it did in the prototype stage. The qual- Eaton’s e-mobility business unit MicroFuzzy, a KPIT group company ity of software and the software-hard- for electrified vehicles, set up in 2018, that specialises in vehicle electrifica- ware integration is key to this. All this focuses on three primary areas: intel- tion engineering, is working with KPIT’s requires time and experience. Hence, ligent power electronics, power sys- electric power-train team to execute the need for a software accelerator and tems, and advanced power distribution this strategic software programme. The integrator will increase. and circuit protection. The global vehi- strategic collaboration nominates the Taking into account the fact that a cle electrification market is projected to Indian company as the single-source vehicle is typically in use for about 10

UPS AND DOWNS (R crore) Total Income PBT PAT 978 197

169

239 193 209 42 32 30 29 28 23

FY19-20 Q3 2020 Q2 2021 Q3 2021 FY19-20 Q3 2020 Q2 2021 Q3 2021 FY19-20 Q3 2020 Q2 2021 Q3 2021

u 39 u April 19-May 2, 2021 Corporate Reports Business India u the magazine of the corporate world

Kpit Pune campus Kpit software engineering center Europe

to 15 years, sometimes even longer, beginning of April 2020, as its top pri- blend of diversity’ for the industry. This electronics now enables the intro- ority was employee safety, while meet- was vital, says Jayada Pandit of KPIT, duction of new features via Over the ing client commitments. “Our road who moderated the discussion, because Air updates. This makes it possible to map on meeting customer commit- women designing these vehicles are achieve good revenues despite falling ments was strong, with a clear focus fewer than 30 around the world, though cyclical sales of new cars. End consum- on Zero Defect Delivery and increas- women influence 85 per cent of all car ers need new features, which in prac- ing productivity. We focussed strongly purchases globally, worth more than tice mean new software. “This may on employee well-being and employee $80 billion. The participants discussed lead to different business models for satisfaction, ensuring skill utilisa- a variety of issues from right opportu- higher life-cycle revenues and mone- tion, up-skilling and managerial sup- nities, right mentoring, to being at the tisation of data and services,” he adds. port to enhance our IT systems and right place at the right time – from per- Explaining why KPIT has done well infrastructure.” severance and passion to people skills. despite Covid-19, Patil points out that, KPIT and the Silicon Valley-based “The panel discussed inspiring insights, though the Covid-19 pandemic did lifelong learning platform Udac- thoughts and experiences with indus- bring some disruption in the indus- ity are also partnering to upskill and try expert women leaders in the field of try in the medium term, both the build the engineering talent eco- mobility,” she adds. industry and its business fundamen- system for autonomous technology, Beyond business, KPIT has taken its tals are strong. “We needed to be nim- including self-driving cars and auton- exclusive focus on the mobility and bler, adapt more quickly and innovate omous flight. This partnership acceler- automotive industry to run its annual to respond to client needs during this ates scalability by providing training ‘KPIT Sparkle’ programme, which time so that we could contribute to and competency in AI, self-driving brings industry and academia together their success,” he says. “Mainly, our car engineering, data engineering. to shape the innovations of the future. focus was to help our clients to make “Partnerships with top employers This offers a platform to faculty and progress on transformation inspite of like KPIT are essential to delivering students of undergraduate, post-gradu- the Covid impact.” More, this pro- on our mission to democratise educa- ate and Ph D courses from the science, active approach towards the ever- tion,” says Sebastian Thrun, founder engineering, design and management evolving situation even enabled the & executive chairman, Udacity. “Self- streams of colleges and universities company to win a few long-term deals. driving cars engineering is a field with all over India. This year, more than “Since the company bags nearly incredible job opportunities and the 21,000 students from over 950 colleges 70 per cent of its revenues from inno- power to save lives.” registered, while 2,700-plus teams vative technologies, it will be a good With 6,000-plus ‘Automobeliev- came up with idea prototypes. long-term bet, because of the thrust ers’ around the globe, specialising It also runs a ‘Chhote Scientists’ on elective vehicles in the US and in embedded software, AI and digi- programme, with experiment-led ses- Europe,” says Anand M.S, analyst & tal solutions, KPIT enables customers sions by KPIT employee volunteers and co-founder, Investor Relations Soci- to accelerate implementation of next- Jnana Prabodhini volunteers, who ety. “Moreover, KPIT’s healthy cash generation mobility technologies, Patil teach basic concepts of science using reserves and its zero-debt status, espe- says, adding: “Our development cen- easily-available material. It has so far cially during the pandemic, make it tres in Europe, the US, Japan, China, covered 57,388 beneficiaries in 200 look attractive.” Thailand and India enable us to work schools. “This has been a fulfilling with leaders in mobility and is present programme, especially it allows KPI- Meeting customer commitments where the ecosystem is transforming.” Tians to actually participate by spend- KPIT enabled almost its entire global Along the way, KPIT hosted a vir- ing personal time,” Patil says. u workforce – 98 per cent, Patil quan- tual panel discussion with women lead- SEKHAR SESHAN tifies – to work from home by the ers in mobility to discuss ‘the perfect [email protected]

u 40 u April 19-May 2, 2021 Business India u the magazine of the corporate world Guest Column The rise of private labels

In the FMCG brands’ race, ‘brand loyalty’ matters, but it’s the fittest that survive

MCG businesses are only about ‘brands’. The hard ease in ordering and receiving goods. work put in to the brand to earn consumer loy- • The FMCG companies have in-depth understand- Falty sometimes culminates in the brand becom- ing of each category; hence, they ably fill the need ing synonymous with the category. Today, the rise of of consumers. They successfully launch new prod- private labels in e-commerce and retail chains poses a ucts, as consumers’ trust of the brand comes from the new challenge for incumbent FMCG brands. It will be house of established FMCG companies or strong brand interesting to watch and see how FMCG brands evolve endorsers. On the other hand, private labels generally and employ new ways to attract consumers – espe- push the products from their arsenal to their captive cially, the so-called new millennials who, in time, will SANJAY AGARWAL audience either in store or on their websites and gen- decide whether decades of trust and loyalty in brands erally spend less on endorsers. will survive or perish. • The jury is out to see if the power of selling FMCG The battle is now being played at a different level, brands has shifted from motley retail shops to large as the FMCG brands hang on to their pan-India distri- retailers/e-commerce companies. However, the cash bution across the ‘mom-n-pop’ grocery stores, while hasn’t …and if the cash hasn’t, the power can’t be. the private labels of e-commerce and retail chains try Today, all FMCG companies in India have been post- to attract their captive consumers and lure them at a ing record turnover with high margins versus retail faster speed. Private labels of e-commerce and retail chain and e-commerce companies still have some chains have an advantage over FMCG brands, since distance to cover before they reach comparable they can place the goods in front of consumers at no profitability. additional cost and push their products, while FMCG brands have to relay their story through media and in- Advantage of private labels It can often be easier store marketing routes for consumers to get to know for e-retailers to get to know customers faster because their products. Generally, the ‘private labels’ strategy of the vast amounts of data tracked online. E-com- is to offer a ‘me-too’ product at a price less than the merce, for example, is able to employ its loyalty pro- established FMCG brand. Generally, no innovation is gramme, cookies, cloud services and an app, among carried out and their USP is offering price value to con- other tools, to track exactly when a customer begins sumers. For them, riding on the success of established shopping, and what they’re looking for. E-commerce brands is easy, but offering anything unique to the websites place their private labels at the top of the list- consumer is challenging. ing and, hence, it is easy for a consumer to choose Needless to say, all large e-commerce and retail those brands. Product features and the benefits of pri- chains in India have launched their private labels, vate labels, shown on the website, are easy to induce mostly in staples and foods, followed by a ‘home care consumers to ‘buy’, keeping old-age FMCG brands category’, as there is less consumer involvement in the next to it. purchase of these products. As the brands go higher • Similarly, consumers in the large retail stores shop up in the value chain in ‘personal care’ or ‘cosmetics differently. They tend to make more impulse pur- category’, the bar rises in research & development and chases and the longer they’re in a shopping environ- this is where the decades-long trust of FMCG brands ment, the more money they’re likely to spend. Retail scores over private labels. stores prefer showcasing their own private labels and their marketing representative educates the con- Behemoths score The FMCG companies follow a sumer, which often creates a sense of obligation and ‘distribution-heavy model’, where their field force act results in an immediate purchase. as the primary driving force in pushing their prod- • Regional tastes and variants are offered, where ucts to consumers, aided by marketing and advertise- global and national brands may not have had any- ments. Going forward, with the e-commerce boom thing to offer. and rise in consumer spending habits on online and mobile platforms FMCG companies are expected to The road ahead… Many FMCG brands today are adapt a multifold strategy, including selling their mid/ ‘stuck in the middle’, trying to figure out what they high-ticket size items in bulk packs on e-commerce want to be. But the successful companies will decide websites and retail chain platforms. They are increas- The author is CFO, to ‘pick sides’. What is at stake is the decades of trust ingly integrating with local merchants for home Jyothy Ltd, an FMCG and loyalty of consumers and the research & devel- delivery-based models through in-house websites and company. The thoughts opment of FMCG companies, which are difficult to apps. People will prefer to shift to private labels, only expressed here are his replicate. ‘Brand loyalty’ matters, but it’s the stron- if they are given discounts as baits, or they experience personal views gest and the smartest that invariably survive. u

u 41 u april 19-may 2, 2021 Corporate Reports Business India u the magazine of the corporate world Emerging from the shadows

GR Infraprojects comes out as an EPC company with quality, speed and sincerity

ust out of his junior college in Jodh- pur in 1977-78, young Vinod Agar- Jwal was sent by his civil contractor father to Bangalore to study engineer- ing. Enamoured by the urban culture, and more by the cinema halls of Ban- galore, the Rajasthan rural-bred Vinod spent more time watching films, than checking for engineering colleges. Having exhausted all the money given by his father, Agarwal returned home to join the family business and script his own blockbuster GR Infra- projects Limited (GRIL) which, over the years, has emerged as a major EPC company, Vinod: having done over 100 proj- roads bring in ects worth over R35,000 prosperity crore across 15 states in University. Ajendra, as the fixed for the current fiscal.” India. managing director, now over- The National Infrastructure Pipe- Vinod’s father, the late sees the company’s overall func- line is a first-of-its-kind initiative to Gumani Ram Agarwal, a grain mer- tioning, especially the operational provide world class infrastructure chant, hailed from Sahawa village in and technical aspects. across the country. The idea has been Rajasthan’s Churu district, known “The major break in our business expanded to cover more than 7,300 for its extreme winters and summers. came post 2000, when the Vajpayee projects with a revised investment Sahawa, surrounded by sand dunes, government launched PPGSY (Prad- of R111 lakh crore by 2025. “Projects did not have any connectivity. It was han Mantri Grameen Sadak Yojana), worth R44 lakh crore (40 per cent) are then, way back in 1965, that the idea of the Golden Quadrangle and East- under implementation and projects building roads entered Vinod’s mind. West Corridor projects,” says Vinod worth R34 lakh crore (30 per cent) are He got his business registered with the emphasising that the past seven years at conceptualisation stage, while proj- state government and executed the had witnessed even further dramatic ects worth R22 lakh crore (20 per cent) first road project at Jaisalmer amid the growth and transformation in roads are under development,” said Gadkari. gathering Indo-Pak war clouds. and highways. On 1 March, road “Our family made their home transport & highways minister Nitin Strong balance sheet wherever my father got contracts and Gadkari announced the achievement “The infra focus is a great opportu- thus we – our parents and five broth- of the target of constructing 11,000 nity for companies such as GRIL,” says ers – travelled across Chittor, Dong- km of National Highways, one month Vishal Tulsyan, co-founder & chief harpur, Jodhpur and later to Udaipur,” ahead of schedule. executive officer, MOPE Investment says Vinod Agarwal. Newly married “The Ministry of Road Transport Advisors Private Limited. MOPE, when in 1984, he moved to Kanbai village & Highways (MoRTH) has achieved founded in 2006 with Motilal Oswal in Udaipur’s hilly region. “My wife is another milestone by constructing Financial Services Limited being the from Delhi and she happily came with 12,205.25 km of National Highways sponsor, was flooded with propos- me,” he adds. in 2020-21 (till 22 March 2021), at 34 als to invest in infrastructure projects Though Vinod had remained con- km per day,” the minister said. “This is but the company could not find many tent by looking at engineering college almost three times of the rate of con- worthwhile opportunities and rejected buildings at Bangalore, his younger struction of highways of about 12 km 35 investment proposals. brother Ajendra Kumar completed his per day in 2014-15. This is also 1,205 Cash management appeared to civil engineering degree from Jodhpur km more than the target (11,000 km) have been a major issue with many

u 42 u April 19-May 2, 2021 Business India u the magazine of the corporate world Corporate Reports of these projects. But, says Tulsyan: India has the second-largest road “MOPE discovered that GRIL had a network in the world, spanning 6.5 unique, strong balance sheet, year-on- million km. Road transportation, the year growth and absolutely no cash- most frequently used mode of trans- flow issues. It was love at first sight,” portation in India, accounts for about he recalls. And: “MOPE invested 86 per cent of passenger traffic and R50 crore through its funds in GRIL close to 67 per cent of freight traffic. in 2011.” Although Indian national highways Asked about the unique features, span nearly 1,36,440 km, constitut- Tulsyan says: “GRIL historically was ing just 2 per cent of road length, (and is) an income tax paying com- they accounted for about 40 per cent pany, paying its suppliers in time of total road traffic in fiscal 2020. The (and sometimes even in advance) and secondary system of roads comprises the way they do business with sim- state roads and major district roads, plicity and honesty is the hallmark which accounted for the remaining 60 of GRIL.” per cent of traffic and 98 per cent of “IDFC, too, invested R30 crore in road length. GRIL and made handsome gains of “Roads bring in prosperity,” explains R68 crore after about five years, when Ajendra: increasing execution capabilities Vinod. “The success of PMGSY can be we bought back the share,” says seen from the flow of two-wheelers, Vinod. MOPE plans to exit soon, as and example, one of the first road projects cars and other mean of transport. Con- when GRIL embarks on its IPO. we executed was for the public works nectivity is no longer the issue. We are Infra watchers say that, with a department, Rajasthan, in 1997, with a talking about better roads now.” The small and humble beginning in 1995, bid project cost of R265 crore, whereas upcoming Delhi-Mumbai Corridor, for GRIL has established a storied his- the project recently awarded by NHAI, instance, is bound in bring in another tory of engineering excellence across the Vadodara-Mumbai expressway, industrial revolution. segments, such as road EPC projects, involves an expense of R2,747 crore,” Hybrid Annuity Model (HAM) proj- he says. Hybrid annuity model ects, BOT projects, highways, bridges, “We don’t get into business unless CRISIL Research expects private con- culverts, flyovers, airport runways and it is clean and we do not compromise struction investments in national railways, delivering over R6,000 crore on ethics at any cost,” says Tulsyan. highways to increase two times to in revenues and going strong. Back- Machinery and equipment valued at R1.5 trillion over 2021-25, compared ward integration has been one of the over R18 crore has been burnt at Haz- with the previous five years. This is key strengths for GRIL, including man- aribagh in Naxal-hit Jharkhand, but expected to be mainly through the ufacturing bitumen emulsion, ther- GRIL did not compromise with the hybrid annuity model, as the build- moplastic road marking paint and road extortionists. operate-transfer (BOT) toll model may signage, fabrication and galvanisation GRIL began its journey outside Raj- have only a few takers. of metal crash barriers, high mast pole asthan with Shillong bypass and Is all business hunky-dory? “Some and lightening poles, OHE and PEB fab- quickly spread to Manipur, Megha- projects, which I shall not name, and rication, all of which is helping them laya, Bihar, UP, Andhra Pradesh. “You which won merely on the basis of L-1 to deliver projects well ahead of time. cannot remain in one place as roads in government tenders keep languish- “The company, having been incor- take you to other states,” says Vinod ing,” says Vinod. “The government porated in December 1995, has as the company bid for projects in Ker- suffers if projects won on the basis of gradually increased its execution capa- ala and Tamil Nadu too. GRIL is also purely L-1 are delayed due to the con- bilities,” says Ajendra Agarwal. “For exploring opportunities in J&K. tractors’ inability to complete them.

FINANCIALS

Total Revenue (R crore) EBITDA (R crore) PAT (R crore) EBITDA Margin (%) PAT Margin (%) 689 1,335 21.81 21.42 21.05 12.63 596 11.87 6,126 19.82 11.25 990 11.34 533 1,075 5,018 4,705 399 626 3,160

2018 2019 2020 9 mnths* 2018 2019 2020 9 mnths* 2018 2019 2020 9 mnths* 2018 2019 2020 9 mnths* 2018 2019 2020 9 mnths* *9 months ended December 31, 2020

u 43 u April 19-May 2, 2021 Corporate Reports Business India u the magazine of the corporate world

Bad roads lead to accidents, deaths and rest under engineering, procurement everybody suffers.” Tulsyan concurs and construction (EPC) mode. The and says the government should also authority had already awarded over look at the contracting companies’ 2,100 km up to October, achieving capability, background and quality more than 45 per cent of its target of and maintain a fine balance “It is after 4,500 km. The NHAI has also floated all, the tax payers’ money with which tenders for about 7,000 km over the we work,” Vinod points out. “Even the past six to seven months. poorest of the poor pays taxes when GRIL has the rare distinction of they buy something.” Hence, he says: completing 100-plus projects since “We must work with sincerity.” December 2006 across 15 states – hav- Over the years, GRIL built its capa- ing completed most of them much bilities, despite the business roller- before the deadline and getting bonus coaster. The ISO 9001: 2015 certified payments of over R247 crore on that company has over 15,000 employees, score. GRIL plans to go public and has six in-house manufacturing facilities just filed its Draft Red Herring Pro- with captive transportation at Udaipur, spectus with the market regulator SEBI, Guwahati, Lucknow and Ahmedabad, targeting to raise about R1,000 crore. and 6,500 construction equipment and The issue is an offer for sale of over 10 vehicles. As on 31 December 2020, the million equity shares with a face value aggregate gross block value of the com- of R5 each by promoters and investors. pany’s property, plant and equipment The promoter entities include Lokesh was R1,774 crore. Builders, Jasamrit Premises, Jasam- The company undertakes its con- rit Fashions, Jasamrit Creations and struction business in an integrated Tulsyan: no compromise on ethics Jasamrit Construction. The investor manner, as it has key competencies part includes MOPE’s India Business and resources in-house to deliver a Air Commodore & Air Officer Com- Excellence Fund I and India Business project from conceptualisation till manding of the Air Force Station. Excellence Fund, apart from Pradeep completion. “Our in-house integrated Kumar Agarwal’s share. The company model is facilitated by the timely Investments in highways will not receive any proceeds from the transportation of key raw materials Despite lockdowns and labour-related issue. The price band and other details like bitumen and diesel from our man- issues, a faster-than-expected recov- will be finalised later. ufacturing facilities and refineries to ery in construction of national high- “Today, L&T is known as the torch project sites, for captive consumption ways, coupled with a policy push and bearer of the EPC industry. I do see a by tankers owned by us that are fitted mitigating steps by the government, clear possibility of GRIL emerging as with GPS tracking devices, which we would sustain the roads & highways the next L&T,” says Tulsyan, pointing believe reduce pilferage and adultera- sector through the pandemic. CRI- out that the Vinod Agarwal-led com- tion,” says Vinod. SIL Research estimates investments in pany has all the characteristics, capa- “While we continue to focus on national highways will increase nearly bilities and business culture to be development and construction of road 1.7 times over the next five years com- qualified for this feather in its cap. projects, as part of our growth strategy, pared with that of 2016-20. These Meanwhile, on the CSR front, the we intend to diversify into, and will investments in national highways will company has created the GR Infra continue to bid for, projects related to grow 8-10 per cent in 2020-21 on the Welfare Trust to carry out CSR activ- the railways sector,” explains Ajendra. back of a faster-than-expected recov- ities with an emphasis on four areas GRIL aims to consolidate its position ery in the pace of national highway – animal welfare and wild life sanctu- in the infrastructure sector and effec- construction (especially in October) ary, healthcare, education and cultural tively leverage its experience in exe- and a large share of high value express- as also rural development. It has built cuting EPC projects. ways being constructed. a community health centre at Sahawa, The winner of several awards of CRISIL Research estimates that which has been ranked as Rajasthan’s excellence, GR Infra Projects has awarding of tenders by the NHAI could number one in a Union government earned high appreciation from Air touch 3,700-4,200 km in fiscal 2021. survey. It has decided to construct a Force station, Jodhpur, for completing “We expect 3,500-4,000 km to be college building at Sahawa, which the the resurfacing of a runway in a record awarded in 2021-22 and an average of government will manage. The com- 10 months – eight months ahead of 4,000-4,500 km over 2023-24 to 2024- pany has also undertaken the ren- schedule. “Leadership and staff at GRIL 25, due to a strong pipeline of proj- ovation and installation of medical displayed considerable discipline and ects under Bharatmala,” the agency equipment and maintenance of a chil- professional competency and ensured says. The NHAI awarded 3,211 km up dren’s hospital, The Maharana Bhupal that high-quality standards were to March 2020, with only 30-35 per Government Hospital, in Udaipur. u maintained while adhering to security cent of projects under HAM, nil under LANCELOT JOSEPH and flight safety norms,” says SB Deo, build, operate-transfer (BOT) and the [email protected]

u 44 u April 19-May 2, 2021 Dark horses. We spot them for you. Way before the others…

INCISIVE u CREDIBLE u AUTHORITATIVE Corporate Reports Business India u the magazine of the corporate world :S Photos aja l B ose

The innerwear brief P.R. Agarwala, with his brothers K.B. and G.P. Agarwala: trend- Hosiery major Rupa firms up position in the market per cent,” says K.B. Agar- setter in the wala, managing direc- innerwear market tor, Rupa & also president, very household, be it poor, middle- dynamics,” claims P.R. Agarwala, 81, Federation of Hosiery Man- class or rich, uses the ubiquitous chairman, Rupa & Co. “Soon, others ufacturers’ Association of India Eganjee/banian. And, a revolution started following us”. (FOHMA). The hosiery manufacturers has been evolving in the undergarment Celebrity endorsement for hosiery are forced to pass on the price hike to segment over the last two decades, as is products is a common practice today in the consumers. Agarwala blames the evident from the ever-growing popular- the segment. Rupa has reaped the bene- spinning mill owners for prioritising ity of the cotton single vest (banian, as fit of investing in television imagery over exports for better profit margin, causing it is popularly known). the years. Currently, big names like Ran- a domestic supply squeeze. One of the first signs of improv- bir Kapoor, Ranveer Singh and Anuskha Rupa, the R975-crore listed entity, ing prosperity among the rural popula- Sharma are the ambassadors for Rupa’s is among the top four organised play- tion is the use of the banian. And, the brands. The company was also involved ers in domestic hosiery goods sale, with slightly better off increasingly uses the in the cricket extravaganza, IPL as a Page Industries, Lux and Dollar being warm vest or knitted cotton thermal sponsor for six years, being associated the other three in the segment. Indian underwear – ideal for Indian winters. with teams such as Rajasthan Royals innerwear market is guesstimated to be There has been a similar revolution in and Sunrisers Hyderabad. Brand adver- about R30,000 crore and expected to women’s innerwear too. tising is a game-changer. “We spend 7-8 grow at a CAGR of 6 per cent in the next The Kolkata-based Rupa & Co Ltd has per cent of our revenue for advertising,” five years. At present, only 40 per cent been well-known for its advertisements. says Vikash Agarwal, president, Rupa, & of the segment is organised. Page, with Two decades back, the company had a second-generation family member. brand Jockey, is the clear market leader roped in the then popular Bollywood Normally, hosiery goods are sold in in the premium category. After Page, star Govinda for its TV commercials, small stockists’ shops, along with a wide several brands entered the premium in which the actor flaunted his vest range of similar goods. And, its market segment in India but with limited suc- on a train and said: ye aaram ka mamla is driven by dealer margins and credit cess. Lux, Rupa and Dollar are primarily hai, which had become quite popular. policies. But the shortage of yarn and its into the mid-to-economy hosiery seg- “We set the trend for TV commercials price rise has now put the hosiery indus- ment. Though post-GST, there was no in the economy segment of the inner- try in a difficult state. “Since October, immediate shift from unorganised to wear market, which changed the market the yarn price has gone up by almost 50 organised sector, that is likely to change

u 46 u April 19-May 2, 2021 Business India u the magazine of the corporate world Corporate Reports soon. However, unorganised players Frontline is Rupa’s highest selling brand, will always be there in the segment, P.R. with a 30 per cent sale record. Agwarwala feels. “Rupa is one of the oldest players in the segment,” says Vinod Gupta, man- Significant player aging director, Dollar Industries. “Its There are about a dozen categories products are good and have wide accep- of cotton hosiery goods in India – tance in the market. We are in close the vest, hosiery briefs, bras, panties, completion with them”. warm thermals, socks and a growing Innerwear industry suffered last year segment of knitted, lounge wear, tees due to the lockdown. Rupa’s sales too and crew shirts. Over 65 per cent of declined from R1,150 crore in 2018-19 to sales in the sector come from vests, R975 crore in 2019-20. The net profit too briefs and trunks. fell from R74 crore to R62 crore during “We are among the significant play- the same period. But, for the nine month ers in the mid and mass segment, which period ended September 2020, the over- constitute 65 per cent of our revenue,” all performance and profitability of the says Vikash. “At present, over 50 per industry have improved. Rupa’s revenue cent of the company’s sales comes from has risen from R795 crore in September non-urban and rural market”. 2019 to R860 crore in September 2020, P.R. Agarwala set up Rupa in 1968, with the PAT for the period too grow- when he was 28, after learning the trade ing significantly from R66 crore in Sep- tricks from his father’s hosiery goods tember 2019 to R109 crore in September shop in Burrabazar area. The name of Vikash: emphasis on premium segment 2020 – a growth of 65 per cent. his brand Rupa is derived from rupo (sil- “Our performance is an indication ver) in Bengali. Agarwala’s business acu- culture prevailed there. Even today, the of the company successfully building men and product innovation helped biggest players in Tirupur have their ori- a resilient business capable of perform- Rupa to make impact in the market. gins in Kolkata. And, despite all odds, ing even in the most adverse condi- In the 1970s, the company launched Rupa continues to run its units in Cal- tions,” says Dinesh Lodha, CEO, Rupa. elastic strap underwear for men – a first cutta though, like other players, it has The management expects the revenue in the mass market. PR was later joined also set up production facilities in Tiru- to increase at a CAGR a 30 per cent in by his younger brothers G.P. and K.B. pur. The three brothers have knitted the the next three years. The company has Agarwala. PR then took over the busi- business well and turned Rupa into a also seen good traction in winter wear ness of Binod Hosiery and converted leading innerwear manufacturer in the sales, with strong pent-up demand sur- into public limited company. country. Now, the second and third gen- facing in Tier II and Tier III cities. Calcutta used to be the centre for the erations of the family have entered the Rupa’s promoters hold 73.3 per cent hosiery business, producing almost 95 business and are successfully nurturing of the company’s stock, while DIIs have per cent of the nation’s output. How- the growth of the company. 1.5 per cent. The remaining 25.2 per ever, the hosiery business in the city Today, Rupa has diversified its prod- cent is with the public. The promoters declined dramatically in the 1970s, due uct portfolio in the segment to include are open for more dilution, if needed. to the infamous labour militancy, which men, women and kids’ wear in its range. Rupa’s shares are trading at R295 forced the industry to develop a new It has over 7,000 SKUs and 18 sub- today, contributing to a market cap of manufacturing base in Tirupur, Tamil brands catering to diverse socio-eco- R2,380 crore. Nadu. The weather in Tirupur had the nomic classes. Frontline, Macroman, The volume of business in the mass right humidity; the water allowed good Euro, Macrowoman, Softline, Femmora, segment is mind-boggling, with pre- dye quality; textile machinery was eas- Bumchums and Torrido are some of the mium and super premium segments ily available; and a favourable work prominent brands of the company. But covering 15 per cent of it, driven by the value and higher margin. “About 5 years and 9M FY21 consolidated results (R crore) 15 per cent of our products are in the Sales premium and super premium ranges,” explains Vikash. “It is catering to the PAT brand-sensitive Indian youth, aspiring 109 1,149 1,120

1,093 towards super premium product cat- 975 1,015 egories. Our target is to increase the 86 859 share to 20 per cent in the next 2-3 74 72

66 years time”. Rupa had acquired licence 62 from FCUK of the UK and Fruit of the Loom from the US to produce and market these brands in India. The company now has four man- FY16 FY17 FY18 FY19 FY20 9M FY21 FY16 FY17 FY18 FY19 FY20 9M FY21 ufacturing bases – in Domjur near

u 47 u April 19-May 2, 2021 Corporate Reports Business India u the magazine of the corporate world

brands like Frontline vests, Jon and Macroman, while the Tirupur facil- ity produces the company’s Euro and Bumchums brands.

Fine products, trendy designs The company employs over 500 peo- ple directly, with 30,000 more involved indirectly, through contract manufac- turing. “Our products are made from fine fabrics with trendy designs and are price friendly,” says K.B. Agarwala. The finished goods are inspected, packed and sent out through its network of over 1,200 dealers and 125,000 retailers and 11 exclusive stores across the country. “We also sell through big retail chains and large e-commerce platforms like Amazon, Flipkart and Paytm, as well as our own website,” adds Agarwala. Lodha: strengthening the markets Moksh, an exclusive distributor for Domjur: the main facility Rupa in Bengaluru, has been associated Kolkata, Tirupur, Bengaluru and Ghazi- with the company for the last seven up to 100 in the next two years,” says abad – and produces 1 million pieces per years. “Rupa has a strong brand recall Lodha. “This will help us to grow pre- day innerwear and outerwear for men, in the segment,” says Shantinath Gan- mium products”. Women’s inner- women and children. The unit in Gha- dhi, who owns the dealership. “Its large wear segment is ruling 64 per cent of ziabad and Bengaluru are for lingeries. product basket, across all price ranges, the total market, where Rupa is set to Domjur is the main manufacturing base meets the customer’s requirements. increase its share. Export is another for Rupa and produces 50 per cent of the Rupa, which was in the leadership area the company has a strong focus company’s total output. It has large inte- position in the mass segment, has lost on. Currently, exports to the Middle grated operations, which consist of knit- its position to Lux. P.R. Agarwala admits East, Africa and Russia bring in only 2 ting, dyeing and cutting. The unit does that it is due to lack of right planning per cent of its turnover. The company fabric bleaching and dyeing of as much but he quickly adds that the company has now taken a challenge to double it as 25 tonnes of yarn. The Domjur facil- is working to regain it. Rupa has charted in the next two years’ time. ity can knit for specifications of 13-42 few growth strategies – expand new “Rupa has strong bouquet of brands,” inches diameter. The four Italian high- markets, focus on high-margin business, says Nikhil Saboo, senior analyst, SKP speed, computer-numerical cutters have increase outerwear products, drive on Research. “With its product portfolio the capacity to cut 320,000 pieces per the exports revenue, grow thermal wear and extensive distribution reach, it is day, which is highest in the industry, business and build strong distribution well-positioned to benefit from chang- claims Rajendra Kumar Singh, GM, pro- and expansion of exclusive showrooms. ing customer preferences towards qual- duction. But what Domjur facility needs ‘The company’s 17-18 EBOs will go ity-branded products, particularly most is suitable house-keeping. amongst the growing and affluent Rupa is setting up a sewing line in Peer comparison* (in R crore) mass. But the company should focus on Domjur, with the capacity of 400,000 Sales EBITA Net Profit improving its working capital. It is a bit pieces per month, at a cost of R50 crore stretched at the moment”. – to be commissioned by next year. 975 The Agarwala brothers have grown The company-controlled sewing line is Rupa 114 the company with almost native intel- largely for export production. 62 ligence. The new generation believes Rupa’s army of experienced and 2,945 that their network and brands must skilled workers produce high-precision, be extended into larger basket of allied Page 532 zero-waste designs, which are shipped goods. They realise that, with increas- 343 out to thousands of units with sewing ing competition, they need to seri- machines in Kolaghat. The stitching 1,202 ously study their brand strategies; and cluster at Kolaghat has over 1,000 sew- Lux 188 are therefore shopping around for ing vendors dedicatedly working for 126 marketing consultants. However, the Rupa. “We organise training for them 969 challenge now for the extended new in association with the local govern- Dollar 104 generation in the business is to keep ment and also help them to get bank the family business united. u 55 loan to buy sewing machine,” Singh SAJAL BOSE *2019-20 says. Domjur produces the flagship [email protected]

u 48 u April 19-May 2, 2021 Business India u the magazine of the corporate world Guest Column Let content creators evolve too

Newsrooms have not always been eager to try AI. Will AIs take over our newsrooms?

e have technological tools like artificial having to keep tabs. Technology now allows pub- intelligence (AI) and machine learning lishers to have all their social media accounts W(ML) across all major industries today. linked for easy management and push stories as We have been trying to learn ways to work with well as notification across all platforms. The pub- technology, so that we can have quality results. lishers have complete control over the messages, The newsrooms certainly have also had the time to the alerts and if anything, personalisation has only develop and find ways to interact with technology been accentuated. for maximum results. In journalism, technology is Curation on a person’s interest – newsrooms super-efficient and helps in more ways than one. CHIRDEEP SHETTY operate in ways that ensure that their target audi- What we need to understand is that this evolu- ence is content. AI and machine learning can be tion in technology is a result of the change in con- made use of to achieve maximum readership by tent consumption. The way we look at news has pushing the right content to the right user by study- changed. The expectations, the interface and even ing the search and retention behaviour. the mode of consumption have gone through sev- AI can also be used to keep track of audience eral shifts. Therefore, it is crucial that newsrooms feedback. User generated content isn’t uncommon embrace this change to proactively engage with for websites and it can be tough to regulate it with- their consumers. out help. UGC tends to be a problem for large, user- Newsrooms use AI primarily in three areas – news driven sites. Publishers can now pre-moderate creation, production and distribution. According spam-like comments. to the global survey by New Powers, New Responsi- bilities, researchers found that only 37 per cent of Not replacement Whenever we talk of AI, people newsrooms had an active AI strategy. This shows have this painted picture of robots taking over the that, while newsrooms are interested in the output humans, a classic scene from the movies. We have brought up by AI, they aren’t actively making use of the fear that if we get comfortable with AI perhaps AI – not to its complete potential. it’ll take out the human element out of our content. Big league news media organisations like AP, While publishers can get numbers and figures for Washington Post and Reuters have been making stories, the analysis needs to be done by journalists. good use of automated content creation tools. Tools This is why journalists will never be out of relevance. like these can be used for stories that run primar- Opinion pages or editorials carry the essence of the ily on number data and help detect trends that help papers. These stories can never be done through bots. give content ideas to the editorial team. This works Stories that require creativity, intuition and critical especially well for analytical stories – popularly, thinking can only be carried out by quality journal- sports or business news. ists. AI can help with verification of facts, get rele- vant data and get better visibility but that’s about it. Helping subscriptions How does AI help with subscriptions? While publishers can use tools that Fighting fake news Using AI tools to verify sta- provide information about trending and engaging tistics and report claims is a quick way to find out stories on the web, tools like Bertie can be made use fake news. This helps ensure that there is no mis- of to provide reporters a draft or story template. The communication on the website. You can even run a MittMedia, a Swedish paper, stated that they got separate section for fact checking with the right AI over 1,000 digital subscribers through such auto- tools wherein users can verify the data they receive. mated content. The automated system had helped This helps publishers stay relevant and establish them publish over 480 stories. themselves as an authentic news source. AI can be used to keep track of subscribers and We have to understand that technology backing frequent users of a website who can then be tar- up journalism will only enhance the efforts taken geted for conversion. by journalists. It’s time we make use of AI for tasks AI and ML will also keep track of genuine users that only slow down content creators. and help publishers manage that activity without As we progress as an industry, it’s important to being in the dark about the engagement their web- invest in tools that help us in return. Sometimes site is getting. This can be helpful for regulating taking the risk is worth it and the fear of trying user behaviour and for studying it. The author is CEO, something new can be what’s weighing you down. AI can be used to manage auto-posting your con- Quintype, a data-driven As content consumption evolves, it’s time content tent. Schedule completed articles on the go without publishing start-up creators do as well. u

u 49 u april 19-may 2, 2021 Technology Business India u the magazine of the corporate world

accuracy of more than 90 per cent. To retool it, FA worked with a panel of experts to review the latest medical literature and determine the typical features of Covid-induced pneumo- nia, such as opaque patches in the image that have a ‘ground glass’ pat- tern and dense regions on the sides of the lungs. FA-incubated Qure. ai raised $16 million in a funding round led by Sequoia India and MassMutual Ventures Southeast Asia, the investment arm of US-based life insurer MassMutual. “Our tools and services help enter- prises in their decision-making processes and significantly enhance their overall effi- Velamakanni: ciency,” says Srikanth Vela- enhancing makanni, 47, co-founder, efficiency group chief executive & vice-chairman, Fractal Ana- lytics. “We consistently look to develop new products and Leaving its mark platforms to help clients adopt and implement AI and analytics expe- Fractal Analytics positions itself strongly in the fast-growing AI space diently and leverage best-in-class AI/ ML-based solutions in their business process to realise large benefits.” ounded in 2000, Fractal Ana- $300 million from institutional pri- lytics (FA) is today one of the vate equity investors, provides services The four pillars Fleading players in the Artificial and solutions in consumer-packaged As the Covid-19 pandemic presented Intelligence (AI) space. Headquar- goods, insurance, healthcare, life sci- an unprecedented challenge to gov- tered in New York, the company is a ences, retail and technology, and the ernments and policy decision-makers strategic analytics partner to the most financial sector. worldwide, FA also envisioned a gover- admired Fortune 500 companies glob- Looking at the growing demand for nance model to manage and contain ally, and helps them power every its products and services during the Covid-19 in India and other parts of human decision by bringing analytics pandemic, the company added over the world. “FA’s model is based on data- and AI to the decision-making process. 700 people to its workforce, taking the driven, decision-making outlines – the It is present in 16 locations including total count to 2,100 people. Of these, four pillars that analytics and AI can the US, the UK, Australia and India. 1,300 employees are based in India, support. These pillars include man- FA, which has its regional head- where the company has offices in Ben- aging the spread of the disease, man- quarters in Mumbai, has consistently galuru, Gurugram and Mumbai. aging healthcare outcomes, resuming been rated as one of India’s best com- Apart from helping businesses with the economy, and citizen engage- panies to work for by The Great Place its innovative AI data and analytics ment,” adds Velamakanni. to Work Institute. It is also featured tools during the recent challenges, FA, Velamakanni co-founded Frac- as a leader in the Customer Analyt- through its one of the product lines tal along with his other IIM, Ahmed- ics Service Providers Wave 2019 by (Qure.ai), deployed AI-powered pan- abad alumni, Pranay Agrawal, Nirmal Forrester Research and recognised as demic response solutions for Covid- Palaparthi, Pradeep Suryanarayan and an ‘honourable vendor’ in the 2019 19 management. Qure.ai transforms Ramakrishna Reddy at a Mumbai flat. magic quadrant for data & analyt- how radiologists make diagnostic deci- Out of the five co-founders, three left ics by Gartner. sions. Qure’s qXR solution is the first early, while Velamakanni and Agrawal The R1,000-crore entity, serving AI-based chest x-ray interpretation have been instrumental in taking the more than 100 Fortune 500 compa- tool to receive CE certification. company where it is today. Currently, nies with its AI, data and analytics- qXR uses a combination of deep- both of them together hold the major- driven business strategies, has grown learning models to detect common ity stake, while the remaining is with at a CAGR of 35 per cent in the last 10 types of lung abnormalities. Trained the investors. years and is looking to grow at a CAGR on more than one million chest x-rays, Velamakanni is B Tech in Electrical of over 40 per cent, going ahead. The qXR detects 15 of the most common Engineering from the Indian Institute company, which has raised more than chest x-ray abnormalities with an of Technology, Delhi and holds an

u 50 u april 19-may 2, 2021 Business India u the magazine of the corporate world Technology

MBA in management from the Indian Institute of Management, Ahmedabad. Prior to co-founding Fractal, he was an investment banker working (worked with ANZ Investment Bank, ICICI Bank, etc) on structured debts and col- lateralized debt obligations. “We are making progress on our goal to build a $1 billion-revenue com- pany in the AI space thanks to our relentless focus on serving Fortune 500 companies globally in enabling an AI-led digital transformation in their businesses,” says the Fractal group CEO with confidence. Velamakanni is also co-founder and trustee of Plaksha University, with a strong academic focus on core engineering, AI/ML and mathemat- FA develops new products to help clients adopt AI and analytics expediently ics. Additionally, Plaksha promotes interdisciplinary learning by bringing data analytics firm, while, in June 2017, “The demand for AI is surging across together science and the liberal arts. it acquired the Chicago-based strategy the enterprise. Our AI solutions and A member of the NASSCOM Exec- and analytics firm, 4i Inc. In Septem- globally-recognised team of experts utive Council, he serves as a subject ber 2017, it partnered with Final Mile to empower these organisations to real- matter expert on data and AI. His pas- combine data science with behavioural ize and maximize their full potential. sion for AI and analytics has made him science and finally, in March 2018, it The investment from the Apax Funds a thought leader in the space and an acquired Final Mile. will accelerate our ability to scale and admired public speaker. He considers meet this rising demand globally. It himself a lifelong student of mathe- Growing rapidly also establishes Fractal Analytics as matics, behavioural economics, neuro- The company’s business model has one of the world’s most well-funded science and consumer behaviour. He generated significant response from AI providers,” says Pranay Agrawal, reads an average of 40 non-fiction investors. Private equity firm Apax co-founder and CEO, Fractal Analytics. books a year on the aforementioned Funds in 2019 invested $200 mil- The global artificial intelligence subjects. He also enjoys memoirs, lion in the company for a significant market size was valued at $39.9 bil- biographies and books on leadership. minority stake. The investment val- lion in 2019 and is expected to grow Under his leadership, FA has devel- ued FA at about $500 million. It also at a CAGR of 42 per cent during oped several product lines/subsidiaries marked the exit for Malaysian sover- 2020-2027. The continuous research within the company including Cud- eign wealth fund Khazanah Nasional and innovation directed by the tech dle.ai, Eugenie.ai, Theremin.ai & Qure. Bhd and TA Associates. Apax’s invest- giants are driving the adoption of ai. While Qure.ai assists radiologists ment also includes primary fund infu- advanced technologies in industry in making better diagnostic sion into the company. Khazanah had verticals, such as automotive, health- decisions, Cuddle.ai assists CEOs and invested $100 million in FA in 2016, care, retail, finance, and manufactur- senior executives make better tactical while TA Associates invested $25 mil- ing. However, technology has always and strategic decisions, whereas There- lion in 2013. been an essential element for these min.ai improves investment decisions “The data and analytics sector is industries, but AI has brought technol- and Eugenie.ai discovers anomalies in attractive and growing rapidly as com- ogy at the centre of the organisations. high-velocity data. panies increasingly see it as a core stra- For instance, from self-driving vehi- FA acquired AI solution provider tegic function of their business. We are cles to crucial life-saving medical gear, Zerogons to strengthen its cloud AI delighted to partner with Fractal Ana- AI is being infused virtually to every business and further accelerate the ‘data lytics who are extremely well-regarded apparatus and program. AI is proven to decisions’ journey for its Fortune in this space due to their cutting-edge to be the significant revolutionary ele- 500 clients. In the past few years, it has advanced analytics and AI capabili- ment of the upcoming digital era. Tech brought in a range of innovative solu- ties which help their blue-chip client giants like Amazon, Google, Apple, tions, such as providing intelligent base solve complex problems. Srikanth Facebook, IBM and Microsoft are solutions, assistance in store-level fore- and Pranay have done an excellent investing significantly in the research casts, real-time monitoring, and much job building a differentiated com- and development of AI. These compa- more. The company has been build- pany with a clear vision. We look for- nies are working for making AI more ing up its capabilities through the inor- ward to working with them to scale accessible for enterprise use-cases. u ganic route as well. In August 2016, it the business further,” states Rohan Arbind Gupta partnered with KNIME, an open-source Haldea, Partner at Apax Partners. [email protected]

u 51 u april 19-may 2, 2021 Marketing Business India u the magazine of the corporate world

desire, the brand’s new campaign is young, unpretentious, and inclusive, ‘Delicious and wonderful’ thereby portraying the simple joy of its whisky in such a colourful and Whisky brand Glenmorangie approaches Indian consumers via a unique way.” new campaign Simply pleasure Aldridge’s style and precision is evi- dent throughout, each colourful scene enriched by playful visual clues to the brand, including tributes to its spirit animal. The campaign is peppered with little ‘Easter eggs’, little things to find throughout – from anagrams of Glenmorangie: ‘A Ginger Lemon’ in the train and ‘Mango Reeling’ as a neon, to the recurring motif of the giraffe, appearing in each of the stills, like little games, almost cameo per- formances, the campaign is contrary to the usual representation in whisky campaigns. “I was an integral part of the team that developed the campaign and I would like to think that my philos- ophy of whisky-making kicked the campaign off,” says Bill Lumsden, director, distilling & whisky creation, The Glenmorangie Co, who has just completed 25 years with the company. “I’ve always said to people when I’m out in the market, ‘I can give you a two-hour lecture on the intricacies of biochemical degradation of starch in f it’s a Miles Aldridge campaign, Glenmorangie’s delicious whisky,” the mash tun, if that’s what you really fluorescent colours, glamour and explains Caspar Macrae, director, want, but the main thing is what does Icinematic images with a height- marketing & business development, it actually taste like?’ Please don’t ened experience of living life large The Glenmorangie Co, part of the worry too much about the technical- is de rigueur, isn’t it? It’s no surprise Louis Vuitton Moët Hennessy group. ities, just enjoy the fact that it’s abso- then that the latest campaign by 1964- “Inspired by the brand’s signature lutely delicious. It is a truly wonderful born British photographer for Glen- orange colour, the new campaign is a whisky, so I like the fact that the brand morangie Highland Single visual feast that throws campaign has taken that idea and ele- Malt Scotch Whisky amply open the wondrous world vated it to a global to appeal to differ- reflects his hallmarks. of Glenmorangie, for all ent consumers around the world. The Created in partnership to explore. We hope it new campaign is meant to help people with DDB Paris and Miles will welcome more peo- understand that the primary reason to Aldridge, the campaign, with ple to experience the deli- drink single malt Scotch is pleasure. the tagline – ‘It’s kind of deli- cious and wonderful way Moet Hennessy India will roll out a cious and wonderful’, invites we look at life.” 360-degree campaign staggered across global audiences to view the While it is a global the coming months in line with this world through Glenmoran- campaign, Sophia Sinha, new campaign. While the campaign gie’s eyes. Designed to wel- head, marketing, Moët will appear globally in print, digital, come more people to share Hennessy India, explains digital out-of-home and social media, the simple joy of Glenmo- how the campaign con- the strategy for the Indian market will rangie’s delicious whiskies, nects with India. “Glen- differ on the basis of local restrictions, the campaign reimagines morangie remains with a mix of digital and social media, six everyday experiences as committed to creating retail and trade visibility, events and wonderful moments, in technicolour delicious whisky for people to have activations in travel retail. u of course. wonderful moments with it,” she SUMAN TARAFDAR “There is a simple joy in sharing acknowledges. “Stemming from this [email protected]

u 52 u april 19-may 2, 2021 Business India u the magazine of the corporate world Business & Societies

Dhand village. He says he is always a phone call away for any queries raised Sustainability initiatives by the farmer. They have distrib- uted AWD pipes to all thefarmers they LT Foods’ sustainability initiatives help conserve millions of work with, free of cost in Dhand vil- litres of water lage. Besides, masks and PPE kits too are given away for free. LT Foods has become the first com- pany globally to be certified with the highest level of certification – L3 – by a UN backed Sustainable Rice Platform (SRP) ecolabel. They can now use the SRP verified logo on the packs of rice produced by verified farmers growing sustainable rice. This endorses their commitment to sustain- ability in all aspects of busi- ness from ‘farm to fork.’ Nearly 50 per cent of LT Foods’ business comes from export and their objective is to cover all e have saved nearly “I own about 6.5 export quantities from- 30 per cent water and acres of land and my sustainably grown paddy. “Wthe yield of paddy has yield has improved dras- Almost 10,000 farmers (culti- increased, leading to an additional rev- tically,” says a 39-year-old vating basmati rice on 150,000 enue of nearly R10,000 per qila of land. farmer Ram Nivas. “We have acres) have already adopted SRP All this has been possible since we also been made Improving the farmers’ income practices. “We recog- began following the sustainability ini- aware of the types nise and believe that tiatives of LT Foods, since 2016,’’ says of pesticides we should use and we maintaining a symbiotic affinity with Madan Pal, a 50-year-old farmer from buy the most reliable brands, thanks natural resources is important part of Dhand village in Haryana. Madan Pal to LT Foods”. There is a proprietary long-term sustainable business vision has nearly 12 acres of land and alter- mobile app, remote sensing, drones and of our company,” says Ashwini Arora, nates between growing basmati rice machine sprays for pest management - MD, LT Foods. “Our Agri extension pro- and wheat in his fields. amongst a host of other things that is grammes integrates sustainable rice LT Foods, which sells rice under the helping these basmati rice producing farming practices with socio-economic brand Daawat, is a R4,500 crore com- farmers. well being of farmers, whilst making pany. It has introduced sustainability our supply chain more resilient and pro- farming practice amongst the farming Introducing best practices viding complaint food products to our community across India. They work LT Foods claims that their efforts customers across the globe”. with 60,000 organic farmers, cultivat- would have added an additional R60- All farmers affiliated withL T Food’ ing 80,000 hectares of land. The objec- 70 crore annual income to organic Agri programme are connected digi- tive is to help in conserving water and farmers. These are small farmers with tally with an app called ‘Daawat farm- improving farmers revenues. less than one hectare holding, which ers app’ for two-way interactions Their efforts have led in conserv- would translate into at least an extra between them and the company via ing 48 billion litres of ground water, income of R8,000. different modes. The field officer visits 30 per cent less greenhouse gas emis- To monitor and control the farming their set of farmers regularly to capture sions, due to combined effect of water practices, a team of 45 field officers, who and record data through a tab using and fertiliser reduction through use are graduates in agriculture, are allo- patented software, right from sowing of water-saving technologies like cated certain tracks of land, responsi- stage to the harvesting stage, as a pro- laser levelling, micro-irrigation, alter- bility of certain villages and farmers for tocol. This data gets audited by the SRP nate wetting & drying (AWD) and one-on-one interactions to ensure that auditor at the end of the year. direct sowing. Farmers’ incomes have the output confirms to pre-determined With a strong focus on quality, costs, improved by 15 per cent. requirements. Each field office handles profitability and digital transforma- The company has spent over R50 70-150 farmers and 3,000 acres of land. tion, LT Foods has increased its market crore on their sustainability initiatives “Our objective is to make the farmer share in India and abroad. All the LT during the last five years. Their annual aware of the best practices – which will programmes are 100 per cent traceable spend is in the range of R12 crore to R13 help them conserve natural resources through mobile app. u crore. This is in addition to what they like water and improve their produc- YESHI SELI spend on CSR annually. tion,” says Vikram, a field officer in [email protected]

u 53 u april 19-may 2, 2021 Talking To Business India u the magazine of the corporate world

‘Things look positive for us, as of now’

We were slated for a tete-a-tete, but the upsurge in Covid-19 positive would like to fly them internationally, cases converted that into an online interaction. Here, Murari Lal as also in the domestic sector. Jalan, lead member, Jalan Kalrock Consortium (JKC), the new owners of Jet Airways, in a free-wheeling interview with Yeshi Seli, Are all the previous routes Jet speaks about how they are optimistic of getting an NCLT clearance operated on available for flying? during the course of this month, following which they would begin We have invested in Jet Airways due to to work on getting Jet Airways airborne again after a two-year hiatus its legacy and have submitted a plan to Directorate General of Civil Avia- tion (DGCA) and the Ministry of Civil By when do you expect Jet Airways opportunity in this sector all along. Aviation, expressing our desire to fly to be airborne again? Interestingly, despite the pandemic, on all the earlier routes. We don’t see We are optimistic about getting the we got an opportunity to make inroads any challenges in getting all the ear- National Company Law Tribunal into the sector by investing in Jet Air- lier slots. (NCLT) clearance during the course ways in October 2020. of the ongoing month. Within six What about the erstwhile months of that, we will be airborne Do you intend to buy brand new employees of Jet Airways? Are again. Things look positive for us as of aircraft into the existing fleet? If so, they likely to be reinstated in the now. why? organisation? Yes, we do intend to buy 25 new air- The earlier employees of the organ- Why did you consider investing in craft, which would include 20 narrow- isation are assets and we intend to an airline? bodied aircraft and five wide-bodied recruit as many as possible, depend- Aviation has been an area of inter- ones. We are looking at both Boeing ing on merit and operational require- est for me ever since I can remem- and Airbus. Once the NCLT’s clearance ment. We may recruit an additional ber. We were actually looking for an is in, we will firm up our orders. We team too, if we shortlist buying Airbus

u 54 u april 19-may 2, 2021 Business India u the magazine of the corporate world Talking To

He saw an emerging busi- real estate. He set up a com- first democratically elected Fact file ness market in Russia and pany called MJ Developers. government was formed in urari Lal Jalan was born moved to Tashkent in 1992. He also made inroads into the Uzbekistan, which led to the Min Ranchi on 1 August As Russia was a big hub for the real estate sector in Uzbeki- creation of more opportuni- 1964. His father had a paper photo imaging industry, it was stan. Real Estate was booming ties, as new policies favoured trading business. He is said an opportune time for Jalan to and MJ Developers ventured investments. to have got involved in the invest there. He soon became into making low-cost hous- In 2018, MJD decided to business when he was just the distributor of Konica ing in Uzbekistan. Nearly invest in four hotels across 13 years old. He contributed Minolta in Russia and other CIS 15,000 people are staying Uzbekistan. At present, nearly and assisted his father in the countries, besides Brazil and in the houses made by MJD 32 million sq ft area in Uzbeki- paper trading business in Ran- Eastern Europe. Within a span in Uzbekistan. The company stan is being constructed by M chi for a few years. In 1980, he of 10 years, he had become intends to invest in a smart city J Developers. In October 2020, invested in a photo colour lab the world’s largest distributor project in Kolkata too but the the company, along with an and began travelling exten- for Konica Minolta. clearances are pending so the investment company Kalrock sively all over India on work. Meanwhile, his interest in management is yet to make an from UK, won a bid to acquire Sometime later, he became a paper processing, especially announcement. Jet Airways. Jalan loves to travel distributor of paper for compa- in the photo imaging sec- In 2010, Jalan invested in an and it’s this fad for travelling nies like ITC. tor continued. He invested eye-care clinic in Uzbekistan. that led to his understanding In 1987, Jalan brought in three paper mills in India As the dynamics of the photo of the civil aviation sector and two photo processing labs in – one each in Uttar Pradesh, imaging segment was chang- generated a deep interest in Ranchi and then went on to Madhya Pradesh and National ing, the shift to other seg- the same. acquire more of them in the Capital Region (NCR). These ments became more viable. In He loves cricket and is also neighbouring states of Odisha, mills produce writing and 2015, he invested in Medanta an avid reader. He likes to Bihar and West Bengal – bring- printing paper. Medicity in India and became read whenever he gets time ing the total number of pro- In 2006, Jalan moved to a shareholder. between work and travel. u cessing labs to 20. Dubai and ventured into Meanwhile, in 2016, the

We have invested in Jet Airways due to its legacy and have submitted a plan to DGCA and the Ministry of Civil Aviation, expressing our desire to fly on all the earlier routes

aircraft, as the pilots would have to be Will you consider setting up a NCR. Besides, with most things going different from the earlier ones. separate cargo fleet or would you fly virtual these days, it doesn’t really combo flights? matter where one is based. Every- Do you intend to change the look of We are considering setting up a sep- thing is available at the click of a but- the airline? Perhaps a new logo! arate cargo vertical. We can consider ton now. We have no intention of making utilising the older fleet for the same. any changes. So, nothing will appear But all these are just options we are Where did you grow up? any different from what it was in mulling over at the moment. When Can you share a brief on your the past. the time comes we will make a specific background? announcement to that effect. I was born in Ranchi and began to Are there any changes that one work there, till I moved to Kolkata for a would notice onboard? Jet Airways is now going to be few years. From there, I shifted to Rus- We intend to be more youth-friendly -- headquartered in Delhi. What made sia, as I saw a lot of business opportu- which would include services like the you consider Delhi? nity there. I later moved to Dubai. At Internet in the Skies and also in-flight National Capital Region (NCR) is more present I have business interests across programmes, to attract the youth and convenient at present; so, yes, our cor- many continents. u also keep them entertained. porate headquarters will be in Delhi/ [email protected]

u 55 u april 19-may 2, 2021 Hospitality Business India u the magazine of the corporate world A glimmer of hope

Signum Hotels announces major investments

Sharma: We Kot Dunara, Jodhpur will be running hotels across the ith the economy in a tailspin, investments. The investment is country and develop the right assets,” discretionary spends down going to be in the form of debt Sharma adds, commenting on Wand the travel & tourism sec- convertible into equity in a span of the partnership. “The partner- tor going through its worst phase, the about eight to ten years. We have iden- ship, which took about six months to news that a player is looking to grow at tified which hotels will see a thrust in fructify, according to Jaiin, will invest the moment should be a surprise. Sig- the next couple of months and will be only in hospitality, while IQI is sepa- num Hotels & Resorts, a relatively new a healthy mix of business and leisure rately investing in Indian real estate. name in hospitality, along with its joint destinations.” Jaiin, who mentions seeing several venture partner and real estate player, cycles of growth and decline in the sec- IQI India has announced an investment Aggressive expansion tor, says this is when “we see an oppor- of R1,100 crore ($150 million) to develop “It’s a tough phase we are going tunity as there is a lot of distressed real hotel assets across the country and also through,” admits Pankaz Jaiin, chair- estate in India and there are great deals globally, over the next five years. “We man & managing director, IQI India. on offer and we can innovate. We are will be running hotels across the coun- “Our team’s experience of decades in looking at not just running a hotel, but try,” says a confident Mehul Sharma, the Indian real estate and retail market, participate with a hotel owner for a bet- founder & CEO, Signum Hotels. coupled with our access and network ter valuation of the entire property.” “We have six operational hotels, and through more than 200 cities across Sharma admits that the industry is are aiming for 40 in Year One and 65 India, has fostered our confidence in the making adjustments to cater to a purely by Year Two, with about 2,500 keys, Indian hospitality market and we are domestic and leisure skew of guests employing 5,000 people,” says Sharma. eyeing an aggressive expansion in com- though he points out that the long-term “We will get into the untapped mar- mercial real estate segment”. Sharma plan is to have a mix of leisure, business, ket across metros, Tiers II and III cities feels the sweet spot for them is destina- MICE and wellness focus in the hotels. in India to promote domestic as well as tions where there is travel, as also the While expansion in the Indian mar- inbound tourism to experiential desti- demand and supply situation that can ket will remain the focal point of this nations, pilgrimage, getaways and key have ARRs of about 4,500 and 65 per collaboration, opportunities to expand places of interest. We have identified 42 cent occupancy. overseas will also be explored given IQI’s cities across India, where we are explor- “This joint venture will capitalise on considerable international presence, the ing acquisitions, mergers and property IQI’s global real estate prowess to identify partners stress. Regions in South East Asia such as Singapore, Bangkok and ST. MARTINS HOTEL Indonesia, significant parts of Europe and the Americas will remain of partic- ular interest for any expansion oppor- tunities. Besides its hotels in India, Signum also operates residences in Lon- don, as also hotels in the US, Bosnia and Greece. Given that Indian hospitality industry is at an ebb, any new invest- ments and openings could only act as a beacon of hope. u

SUMAN TARAFDAR

[email protected]

u 56 u april 19-may 2, 2021 Business India u the magazine of the corporate world Entertainment

commercial plays in 1994. Some of the prominent plays produced by Hats off to JD ‘Hats Off’ include: Thank you Kokila, Ladakvaya, Ek bijane gamta rahiye, Avjo J.D. Majethia relaunches ‘Wagle ki duniya’ in a new avatar vhala fari malishu, etc. The Hindi film Waqt: The Race Against Time, starring Amitabh Bachchan, Akshay Kumar, rom 1988 to 1990, ‘Doordarshan Priyanka Chopra and Shefali Chhaya, National’ aired a popular televi- produced in 2005 by Bollywood direc- Fsion show, a sitcom titled Wagle ki tor Vipul Shah was inspired by JD’s duniya about the issues of a middle-class Gujarati play Avjo Vhala Fari Malishu. Indian. This show, which starred vet- JD’s life went through ups and eran actors Anjan Srivastav and Bharati downs, as he struggled to get a firm Achrekar, impressed the Indian audi- foothold in the glamorous world of ence, as the entire plot acknowledged Bollywood. Fortunately, he was given the trials and tribulations of Indian an opportunity to exhibit his acting middle-class life, with a storyline laced ability in a ‘Star Trek’ contest, organ- with relatable humour and wit. In one ised by Amitabh Bachchan Corpora- of the episodes of this show, Shahrukh tion Limited, an entertainment, film Khan, then an upcoming actor, had production & event management com- acted in a cameo role. pany, in 1995. Last year, RK Laxman’s daughter- “I started dabbling in stock mar- in-law, Usha Laxman was contacted ket investments and also saved a sub- by JD Majethia (popularly known as stantial corpus from the revenues JD in the entertainment industry), a generated through shows of Gujarati well-known producer in the Indian commercial plays produced by me,” television industry, to re-ignite the says JD. “I then received financial sup- nostalgia and reboot Wagle ki duniya JD, who attempted to float port from veteran actor Paresh Rawal in a new ‘avatar’, but under the same to fulfil my dream and eventually my name, for a present-day audience. It an OTT platform in 2017 , has friend and business partner-writer proved to be a wise business decision massive expansion plans Aatish Kapadia and I co-produced a by JD, as today, the newly launched Hindi sitcom, Khichdi in 2002 for Star to position ‘Hats Off Wagle ki duniya on SAB TV has enjoyed Plus television channel, in association immense popularity across the globe Productions’ as Asia’s leading with UTV Software Communications amongst Indian audiences since its entertainment content Limited, owned by Ronnie Screwvala.” launch in February 2021. And, both He also co-produced 220 episodes of actors, Anjan Srivastav and Bharati producer the daily soap, Babul ki duayen leti ja, Achrekar, portray important charac- in association with producer Shobhna ters in this relaunched show too. contract in India to promote Optonica Desai for Zee TV. Thereafter, ‘Hats Off The new sitcom Wagle ki duniya has television – a famous Japanese brand Productions’ came up with many hit added to the long list of hit television then owned by the Sharp Corpora- television shows, such as: Sarabhai vs shows produced by JD under the ban- tion. In the same year, JD also partici- Sarabhai; Baa bahu aur baby; Mahisagar; ner of his production company ‘Hats pated in a talent contest organised by Jasuben Jayantilaal Joshi ki joint family; Off Productions’. Originally, it was Stardust Acting Academy – an acting Ek packet umeed; Sukh by chance; Byaah the name of JD’s theatre group, which school launched by publisher Nari Hira. hamari bahoo ka; Bhakharwadi, etc. ventured into the production of Guja- JD, who attempted to float an OTT rati commercial plays in 1994. ‘I had a dream’ platform in 2017 and had strategized “I always wanted to become an “Somehow, I couldn’t successfully the productions of six Gujarati films actor,” says JD. “And, creativity had contest the Stardust talent hunt,” rem- in 2011, has massive expansion plans remained my passion during the for- inisces JD. “It deeply saddened my to position ‘Hats Off Productions’ as mative years of my career. After heart. I quit the lucrative advertising Asia’s leading entertainment content completing an MBA from Mum- job in 1993 to become a full-time actor producer. “At an appropriate time, I bai University, I had joined the cli- and, thereafter, wrote an emotional will certainly list our company on the ent servicing department of a leading five-page-long letter addressed to me! I bourses,” he affirms. The career growth advertising agency in Mumbai. Simul- had a dream, was passionate about act- of JD reminds us that, through determi- taneously, I started acting in a com- ing and had an urge to strive for excel- nation, grit, and a little bit of luck, any- mercial play, Suryavanshi in 1989. It lence in the field of performing arts. one can overcome their circumstances was my debut in the world of the per- Eventually, a blueprint of ‘Hats Off and achieve extraordinary success. u forming arts,” JD adds. productions’ was laid”. ‘Hats Off pro- HEMANG PALAN In 1992, JD bagged his first modelling ductions’ started producing Gujarati [email protected]

u 57 u april 19-may 2, 2021 Portfolio Talk Business India u the magazine of the corporate world ‘Diversify your portfolio’

Amitabh Verma, partner, Fission Wealth Services, has been in the banking and financial services industry for over 22 years, occupying leadership positions at DBS Bank and HSBC. A partner of an AMFI-registered mutual fund distributor, he is an engineer by training from IIT Kharagpur, with an MBA from IIM Lucknow. Fission Wealth, an entrepreneurial venture led by Verma, is based on the ethos of creating wealth for its clients by aligning life goals to investment options. It started its journey in 2010 and has been growing well over the last few years. “Committed client base without any attrition is the key contributor for this growth,” says Verma, in conversation with Lancelot Joseph. “Focussed approach of customised solutions, seamless execution and superior service has been the bedrock of our client satisfaction”, says he

With several states resorting to growth in a post-pandemic world (with help you think longer term, especially partial lockdown, the volatility some breather after a scorching pace) when the markets are volatile. in the market is up. What is your and have a good run over the next few suggestion to investors during years. Cyclicals (including metals) may In terms of asset allocation, is it this phase? gain, as they are aligned to the global time to diversify the portfolio? The uncertainty of the second Covid commodity prices run-up. Chemicals Please share your thoughts… wave means higher volatility in the and other sectors would benefit from Yes. Diversification into uncorrelated near term. However, surplus liquidity government PLI initiatives. Infrastruc- asset classes is important. For example, does not seem to be going away soon ture could have a positive play, but an international exposure has differ- and medium-to-long-term outlook one needs to be careful on debt-heavy ent performance-characteristic, even remains intact. players. The stutter because of Coro- though it may be within the same So, what should the investors do? equity asset class. As different parts of They should not panic. Funds, which the economy respond differently dur- are not needed in the short term, The fourth quarter results are ing Covid’s second wave, this would should be held to ride this volatility. likely to be better help balance risk and reward. Use strict asset allocation and stay but may disappoint those Some good diversifications include, within one’s risk appetite. For fresh geographically, domestic versus inter- allocation, take advantage of the mar- with high expectations from national; asset class-wise equity ver- ket fall. We recommend a staggered the reopening sus debt versus gold; diversification entry (of 3-6 months) into equity from of the economy within asset classes, such as large cap/ these levels. On debt, one need to rec- mid cap/thematic, etc; and within oncile with lower levels of returns equity or long duration/short duration than what has been accruing over na’s second wave would mean that the or accrual/government bonds within the last few years, as the interest rate consumers facing industries, such as debt. regime is likely to remain soft (some airlines, hotels and consumer goods, Risk management is an important small spikes excluded). would have a dull quarter. aspect of wealth management. One must look for any triggers, which may The fourth quarter results have What is your advice to retail lead to liquidity being sucked away started coming in; what is your investors? from the market (significant rise in assessment and what is your outlook Our advice is to keep things simple and interest rates in US for example) and for sectors? invest in what you understand. Sec- use them as early warning for long- The fourth quarter results are likely ond, follow strict asset allocation in term positions. to be better but may disappoint those these volatile markets; re-balance port- It is important that we focus on the with high expectations from the re- folio regularly, booking profits where same, so that we can enjoy fruits of opening of the economy. The stron- needed and topping up, where needed, the wealth we create. Also, as we look ger players continue to gain market to maintain asset allocation; SIP/STP at the damage a pandemic can create, share and repair balance sheets, which are good modes for long-term invest- get your retirement planning, wills, would aid sustained growth in the ing keep emergency kitty, so that exi- nominations in order so that you can future. Sectors such as technology and gencies do not derail your financial continue to breathe easier, going healthcare would continue to show plan. Use advisors you trust. They can forward as well. u

u 58 u april 19-may 2, 2021 We take out the pips. And leave you the fruit.

INCISIVE u CREDIBLE u AUTHORITATIVE Books Business India u the magazine of the corporate world Celebrating a phenomenon

The volume explores the influence Palkhivala has had on the Indian titan. To express his gratefulness to Constitution through his interpretative skills the young lady who snatched his job, and Mohan Kumar, former Army chief he invited her to dinner. RETHINKING PALKHIVALA Ved Malik, Parliamentarians Sumi- After a brilliant academic career, Centenary tra Mahajan and Vinay Sahasrabud- Palkhivala quickly became one of India’s Commemorative dhe, and Swaraj Abhiyan and Jai Kisan most sought after lawyers and remained Volume Andolan convenor Yogendra Yadav. at center stage for five decades. Famous Edited by: Major General This volume will thus be of value to law for his phenomenal power of concen- Nilendra Kumar (retired) practitioners, tax professionals, judges, tration and persuasive advocacy, he was Publisher: Oakbridge jurists, diplomats, academicians, policy a supremely successful lawyer. Early in Publishing Pvt Ltd makers, students of law and any person his career, he authored one of the fin- inclined to learn more about the Indian est commentaries on the law and prac- Pp: 328; R796 constitution. tice of Income-Tax. His reputation as The volume also explores the diverse a constitutional lawyer was formida- ethinking Palkhivala: Centenary roles played by Palkhivala and his last- ble, having had the privilege of arguing Commemorative Volume has been ing impact on the landscape nearly all important con- Rconceptualised under the guid- of Indian polity as a legend- stitutional law cases before ance of its editor Nilendra Kumar, who ary lawyer and jurist, corpo- the Supreme Court between retired as Judge Advocate General of the rate leader, diplomat, erudite 1965 and 1995: Golak Nath, Indian Army. The book celebrates the scholar, persuasive orator, Bank Nationalisation, legend, the veritable renaissance man public rights activist, emi- Privy Purses, Kesavananda that Nani A. Palkhivala was, and com- nent writer and a great phi- Bharati, St. Xavier’s, Mandal piles his legacy and lessons for the next lanthropist. The influence Commission and Election century. that Palkhivala has had on Commission. He also repre- Published on 31 January, the vol- the Indian Constitution sented India in three major ume chronicles the year-long Birth Cen- through his interpretative international disputes. tenary Celebrations of Palkhivala (16 skills, especially the Basic Nani A. Palkhivala A man of many parts January 1920-11 December 2002) that Structure Doctrine, has left an and strong opinions, Palkh- were organised by Lex Consilium Foun- indelible mark on the political and legal ivala’s critical speeches on the annual dation, of which Kumar is founder- fabric of this country. budget probably grew more important director. Through the lectures, panel than the Union Budget itself, attracting discussions, debates, quizzes and arti- Overcoming stammering Palkhivala audiences in excess of 1,00,000. Amaz- cles that comprise this volume, readers strode like a colossus across the Indian ingly, he spoke extempore. He gave will find that the words and thoughts of legal arena. Born in a modest Parsi generously, but unobtrusively, to char- Palkhivala are still relevant and provide household in then Bombay’s Nana itable causes. guidance on the numerous issues and Chowk precinct, Palkhivala had his “What was the aim and purpose of topics that are covered. schooling at the nearby Master’s Tuto- this book?” asks Kumar, and himself A remarkable feature of the volume rial High School and then did his Mas- answers: “It is an effort to revisit the are the speeches, lectures and reminis- ter’s in English literature at St. Xavier’s work and contribution of Nani a little cences concerning Palkhivala by 55 College. His brilliance shone through more objectively and having regard to eminent persons, who include legal already in those days, and through the later case law. A need to bring a pub- luminaries Soli Sorabjee, Sanjay Hegde, sheer willpower he overcame his ini- lication of all the speeches had been Prashant Bhushan, Salman Khurshid, tial handicap of stammering. expressed by a number of well-mean- Abhishek Singhvi, Madan Lokur, Kurian He took up music in his younger ing persons…… The younger genera- Joseph, D.Y. Chandrachud, Indu Mal- days, playing the violin reasonably tion and especially the students would hotra, Iqbal Chagla, Dipak Misra, K.K. well. But he was destined for higher benefit from the compilation high- Venugopal, Aishwarya Bhati, Arjan callings. He applied for a Lecturer’s lighting the topics and issues that had Sikri, Janak Dwarkadas, Upendra Baxi, post at the Bombay University, but to attracted the attention of Nani Palkh- and Tushar Mehta, the late Home Sec- his utter regret, a Parsi girl was selected ivala also.” retary, Comptroller & Auditor General, instead. With admissions to most This book may be seen as a tribute to and Governor of Karnataka and Kerala, other courses closed, he enrolled at the a man who, according to the late Presi- T.N. Chaturvedi, economist, author and Government Law College, Bombay. dent, A.P.J. Abdul Kalam, was “indeed a former journalist and politician, Arun Had he secured the Lecturer’s post, he great human being and also an advocate Shourie, chairman of the Economic would certainly have blossomed into a of advocates”. Advisory Council to the Prime Minister, brilliant professor, but the world of law u SAROSH BANA Bibek Debroy, diplomats Lalit Mansingh and public life would have lost a legal [email protected]

u 60 u april 19-may 2, 2021 Business India u the magazine of the corporate world Books

currency is its cost, safety and purity. And forgeries! A measure of value This has shaped money and our transactions. Shaikh describes the his- Money isn’t everything but not having it is! tory of paper money in India from the 1770s to the present, covering The Conjuror’s shows major research and covers the finance, history, public policy, philos- Trick: An cultural aspects of paper money. It ophy, art, and the changing roles, sys- Interpretive mentions free banking, (where banks tems and iconography of currency as History of Paper are free to issue their own notes with- needed by civic life and governance. Money in India out special regulations, insurance or He examines contemporary debates By Bazil Shaikh deposits, ie with rules similar to most and innovations that will impact enterprises), and discusses local cur- value transactions in the future. This Supported by BNP rency, usually made to keep money wonderful book has numerous enter- Paribas within a community. taining and informative stories about Pp: 248; $25 The book covers money’s chang- history and paper money and also its ing forms from metal to fiat money, predecessors. central banking and the principles Everywhere Shaikh brings us sto- n India, cowries were used for cen- now deemed essential to support note ries, eg Jagat Seth or ‘Banker to the turies as money: gorgeous, dura- issue. It looks at ‘the life of a nation’ World’ was given that title by the Ible and impossible to counterfeit. through notes depicting colonisa- Mughal emperor. His family had They came from the Maldives and tion, war, independence, Partition, the helped to establish Murshidabad, were accepted from Arabia and Africa green revolution and industrial devel- which Clive described as extensive, across SE Asia and China. The Con- opments, satellite launches, demone- populous and rich as London, with juror’s Trick: An Interpretive History of tisations and alternative transactions the exception that people here owned Paper Money in India by Bazil Shaikh like ‘labour notes, time banks, Gosaba more property. is the first Marg publication about experiment, khadi hundis, cryptocur- As former Reserve Bank Gover- the history and contemporary debates rencies and even anecdotes on money nor YY Reddy writes, money has been around paper currency, its functions and erotica, (fairly early in the book!), reimagined over time. Paper money and aesthetics. A delightful aspect is shipwrecks and forgeries’. In the 17th commenced when ‘from a physical the designs, symbols, royal portraits, century, banks were set up to issue medium possessing intrinsic value, deities, national heroes, heritage, flora notes and ‘conjured it out of thin air, such as gold and silver coins, to tokens and fauna, used on currency. Shaikh introducing the unique alchemy in which derived their value from under- looks at little known paper notes from money’s transition’ from the concrete lying coins and then the tokens them- Kashmir, Hyderabad, the Prisoner of to the abstract. While paper money is selves assumed value without having War tokens and more, and what led to an essential part of daily life, its worth to represent any underlying com- past forms of value and today’s chang- is tied not to paper’s intrinsic value modity’. The value is from the issuing ing needs. This complex, painstak- but to mutual belief, trust and knowl- authority or fiat and the public con- ing work, written with wit and style, edge. The problem with paper or coin fidence in the central bank and the nation’s stability. The idea that the central bank is the best authority is now being challenged and money is becoming ‘memory as digital tokens that exist in an immutable register’. Bazil Shaikh, author and for- mer central banker, has worked in trade, exchange rate management, rural development and governance, amongst others. He headed the team which created and curated the RBI Monetary Museum, Mumbai. His major publications include ‘The Paper and the Promise’ and ‘Mint Road Milestones: RBI at 75’. This attractive book is a great resource for policy- makers, bankers, lawyers, historians, students and notaphilists interested in heritage. u swapna vora

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u 61 u april 19-may 2, 2021 Books Business India u the magazine of the corporate world

bureaucracy in the post-Emergency period, the politics of rural develop- And on many other sites ment and, importantly, the politics of civil service neutrality, competence A fictional history of the goings-on within the Archaeological and dedication. Society of India, as also of civil servants wedged between ideals and The Emergency years, 1975 to 1977, high ambition were an inflection point when gov- ernance was weakened and the civil Rogues among relics. Underscoring this plunder was service lost its neutrality and profes- the Ruins a deplorable absence of an astute eth- sionalism. Transgressions of the rule ical culture and accountability. This of law and the stifling of the coun- Author: Achala Moulik wantonness compounded an already try’s democratic traditions became Publisher: Niyogi sordid situation where the British had the rule of the day. When the Shah Books, New Delhi brazenly carted away historical trea- Commission subsequently examined Pp: 312 sures that eventually ended up in their the excesses of the civil and police Kindle edition R268.45 museums, art galleries and homes. services, the disclosures and admis- Paperback R398 Moulik’s book takes us to the late sions by these authorities who testi- 1940s, when the fictional renowned fied before the commission revealed archaeologist, Dr Julius Norton, arrives their complicity. retired veteran bureaucrat who in India on deputation as the Director A report in 1969 by the Union had served as India’s Education General of the ASI. In his unshaking Home Ministry had warned that the ASecretary and as Director Gen- commitment to his calling, he tries to Green Revolution would turn into eral of the Archaeological Survey of hold himself above the politicking of a Red Revolution, unless there were India (ASI), Achala Moulik distils her the day, deflecting the Viceroy’s sec- far-reaching changes. The report was vast experience into her latest offer- retary’s attempts to ignored by State gov- ing, Rogues among the Ruins, a fictional make him operate as a ernments, leading to history of the goings-on within the secret agent of the Raj. the centralisation of ASI, as also a portrayal of the conflict In his view, archae- government strategy of civil servants wedged between ide- ology is the hand- A report in 1969 by the to tackle the emerging als and burning ambition. maiden of the Quest Union Home Ministry Naxalite movement in The daughter of a diplomat father, for Truth. rural India. The author 1941-born Moulik schooled abroad, As imperial Britain had warned that the was then in the Union and after spending what she recalls withdraws from India Green Revolution Rural Development was an idyllic youth in Washington, in 1947, Norton plans Ministry and wit- would turn into a Red New York, Rome and London, came to to leave India, though nessed developments India to join the Indian Administra- perhaps reluctantly. Revolution, unless at a close range. Pres- tive Service (IAS). “The transition was The novel’s narrator, there were far-reaching ent as she had been not easy,” she writes, adding that her Elangovan, the son of at an international parents asked her to accept all “mis- an ASI official, notes changes conference that had adventures” and record the profiles of the dedication and prominent Indian par- people, sights and sounds of her new professionalism with ticipation, she brings world. “That was perhaps when this which Norton had out the lack of profes- book began,” she conjectures. discharged his duties, sionalism of the par- Moulik’s literary endeavours were even in the end selecting monuments ticipating Indian delegation. also encouraged by her civil servant of historical and cultural importance An expert in Russian history and writer husband, Mohandas Moses, for conservation by his staff. with several Russia-oriented works resulting in her authoring more than to her credit, Moulik admires the 20 books on culture, art and architec- Role of bureaucracy However, things legendary Russian writer Leo Tol- tural monuments, as well as on Indian don’t go as he had planned, and stoy’s inclination for placing his sto- and foreign literature and heritage. archaeological finds become suddenly ries within a framework of actual Rogues among the Ruins, her newest vulnerable as rogue elements within events and characters in order to novel, is in two parts. In the first the ASI seek to enrich themselves at heighten the realism of his novels. part, titled ‘Life among the ruins’, she the cost of these treasures. The smug- Moulik perhaps is doing something turns a sharply critical light on the gling of antiquities by India’s own similar in Rogues among the Ruins, as ham-handedness of India’s postcolo- people had begun in earnest. also adopting the style of great mas- nial bureaucracy in not just failing to Elangovan’s son, Raman, a mor- ters like Nikolai Gogol and Miguel safeguard the country’s magnificent ally indifferent bureaucrat, chron- de Cervantes who, in their search for archaeology and cultural heritage, but icles the later era in the second part, truth, evoke laughter through tears. u also in actively perpetrating the dis- titled ‘Romance among the Ruins’, SAROSH BANA appearance of numberless invaluable where the novel explores the role of [email protected]

u 62 u april 19-may 2, 2021 Business India u the magazine of the corporate world Selections Allamanda Terrace

The lit-up terrace creates a happy ambience

llamanda bushes have dark one can breathe and feel as if one is green, shiny leaves and big, outdoors. A rare precious feeling today Agorgeous yellow trumpet-like for us city folk! flowers. Happy colours! OnM um- The Allamanda offered good Pun- bai’s loved Marine Drive at the Marine jabi type food the evening we went Plaza Hotel, the roof terrace with its there and we had juices with it. The gorgeous pool has opened up recently menu, we were told, is changed fre- and is named after the blossoms. The quently and reflects diverse Indian lit-up terrace, the soft sound of the and regional cooking styles. The qual- nearby sea, the dark expansive sky ity of the food was good and the above – all create a happy ambience, smoky tandoori preparations, espe- elegant and romantic, and for once cially a delectable broccoli, were really one can forget the awful, claustropho- well made. There were fat khumbi bic Covid pandemic which changed mushrooms and that inevitable Pun- our world. Yes, masks, sanitizers, jabi necessity: paneer. Hot, thin social distancing, all the alien terms nans, with chopped garlic the menu: juices and that have now become common cur- and loaded with butter, some fruit punches. Or rency, are there in full force but at least tasted delicious on a mocktails as they are cool evening. (One called today. Our hopes they make companion did them with freshly find the drinks ground whole very expensive.... wheat soon.) The So Punjabi nour- kali dal was excel- ishment accompa- lent, the yellow dal nied by soft breezes! was, well, also tasty. Punjabi food is the Dessert on the set menu one cuisine that trav- was rasmalai and gulab elled worldwide and came jamun: hot, pleasant and rich. The to be known as ‘Indian food’. food was good but the real charm of The Allamanda Terrace is at The the evening lay in the beautiful roof- Marine Plaza, Marine Drive, Mum- top terrace with its brightly coloured bai. One hopes it will soon have lots mosaic floor, a well-appointed alcove of allamanda blossoms. u for musicians, the blue pool and the swapna vora nearby sea. Drinks are offered with [email protected]

u 63 u April 19-may 2, 2021 People Business India u the magazine of the corporate world

Targeting birds hooting pictures of birds helps him to keep his mornings Soccupied and ‘provides a commercial break’ from his work, says Rezwan Razack. “I do bird photography twice a week early in the morning,” says Razack, co-founder & joint managing director, Prestige Group of Builders, headquartered in Bengaluru. “I have been doing this for the last 10 years.” Twelve of Razack’s bird photographs provide the visuals of the group’s 2021 desk calendar. “The rest of my time after work is spent in research on Indian paper money, which is an ongoing phenomenon,” he says. “I also write articles on this for national and international numismatic publications.” His most recent article, Portrait notes of Queen Victoria, won the International Bank Note Society (ISBN) literary achievement award for acclaimed expert on currency notes, also 2019 – the Fred Philipson has a museum devoted to them occupying Award – from the IBNS an entire floor of the group’s headquarters journal. Razack, a universally building, Falcon Tower. u Poetry is his soul Twice as good meet him after dinner, so we nergy conservation could ‘talk’.” That meeting Eevangelist P.K.C. Bose changed the 14-year-old’s life. has become the only His father, M. Vishwanathan Indian to be inducted for – a professor, who had already a second term as a senator established himself as the in Germany’s Senate ‘father of diabetology’ in of Economy. “It was a India – advised him not to great honour to be made a try to make a career out of senator even the first time, English literature as he deeply when I became the first desired to, but to go into Indian to be inducted as medicine. He had a ready a senator,” says Bose, who response to the teenager’s is also a certified member expressed abhorrence of of the Climate Reality ‘using a knife on someone’: Leadership Corps, trained “Become a physician.” Over by Al Gore, former US Vice- the years, he continued to President. An alumnus write poetry, but channelled of Indian Institute of his writing abilities into Management, Ahmedabad, hen he was a boy, S. research papers: Mohan has Indian School of Business, WMohan wanted to be what his autobiography: Wharton Business School a poet. Instead, he became a Making excellence a habit – and Kellogg School of doctor and set up what is now the secret to building a world- Management, US, Bose Asia’s largest group of diabetes class healthcare system in India, earned his Ph D from institutions, the eponymous describes as a ‘prodigious’ Washington International Dr Mohan’s which number of publications University. He also has 52 clinics in to his name, possesses M Phil in labour 32 cities all over with over studies as well as a India. “I came home 1,300 articles, master’s degree in labour management. With nearly 30 years of on the last day of research papers experience in the corporate world, he has been featured twice school with a stack and chapters consecutively in Forbes Magazine – in 2011 and 2012. He was of English classics in textbooks. invited to participate as a VIP guest for the 2018 Nobel Peace to read during the “The dreams of a Prize Forum in Oslo, Norway, and to discuss renewable energy summer holidays,” romantic teenager, policies at the Norwegian Parliament the same year. Looking at he remembers. who wanted to his earlier hat-tricks – having successfully commissioned three “My father become a writer, are reputed German corporations – SEW Eurodrive, Saertex and opened the door partially fulfilled!” Enercon – in their fields of business in India – he seems poised and asked me to he adds. u for another one as a senator, too! u

u 64 u april 19-may 2, 2021 Business India u the magazine of the corporate world People

Honouring generosity heikh Mohamed Bin Zayed Al Nahyan, the Crown Prince Sof Abu Dhabi, has honoured Indian-origin businessman Yusuffali MA and 11 other individuals with Abu Dhabi’s top civilian award for their noble and charitable contributions to the community. Yusuffali, 65, chairman & managing director, LuLu group, based in Abu Dhabi, operates hypermarkets and retail companies in many countries. “The UAE’s values continue to reflect the deeply-held faith of our Founding Father, Sheikh Zayed bin Sultan Al Nahyan, who believed in the kindness, humanity, and generosity of people,” Sheikh Mohamed said, on the occasion. “And today, we celebrate 12 extraordinary individuals who chose to practise these values every day through their noble and charitable work, making our country and communities stronger.” These individuals were honoured for a wide range of contributions, including efforts in the healthcare field, community service and volunteering, humanitarian work, as well as culture, heritage and environmental preservation. “This is indeed a proud and emotional moment for me. I am happy to receive Abu Dhabi’s highest civilian award from the blessed hands of HH Sheikh @MohamedBinZayed, Crown Prince & Deputy Supreme Commander of the UAE Armed Forces,” tweeted an elated Yusuffali, whose net worth stands at $480 crore. The awards, which were given at the 10th edition of the Abu Dhabi Awards held at Qasr Al Hosn, a historical landmark and the oldest stone building in Abu Dhabi, celebrate compassionate individuals who have selflessly devoted their time and effort to spreading goodness and serving the community. u Keeping the mind happy Helping hand centre is putting together a ecently, Anand consortium to handle the first RMahindra, chairman, project on Parkinson’s disease. Mahindra & Mahindra, took SKAN’s strategic partner for to twitter to confirm that ageing is the upcoming St Coimbatore’s Kamalathal John’s Geriatric Centre (SJGC), (also known as Idli Amma) to be located on the St John’s will get her own house-cum- Hospital campus. Soota has workspace to continue to feed agreed to fund the setting up her customers. Mahindra, of the Centre for Research in who is active on social media, Ageing & Geriatrics (CRAG) shared how he got to ‘play a at the SJGC and to support small part’ in the inspiring joint projects. “It will take story of Idli Amma. “Only 10 years to build a world- rarely does one get to play class institution for ageing a small part in someone’s for this purpose. Kamalathal and neurological research. I inspiring story and I would uses a wood-burning stove am grateful to two eminent like to thank Kamalathal, to make about 1,000 fluffy leaders, who have agreed to better known as Idli Amma, idlis every day. She is a one- take charge as chairpersons for letting us play a woman army, as she shok Soota, executive for the two divisions,” said small part in hers. does everything Achairman & promoter, Soota. He also announced a She will soon have right from making Happiest Minds Technologies, commitment of R200 crore for her own house- the batter to has announced the creation SKAN. Out of this, R100 crore cum-workspace steaming idlis of SKAN, a not-for-profit is earmarked for partners from where she and grinding entity, exclusively for such as St John’s, Centre for will cook and chutneys on her medical research on ageing Brain Research (CBR), IIT- sell idlis”, he own. She sells and neurological disorders. Roorkee, NIMHANS and any tweeted. Team these idlis for Its strategic partner for new partners which may Mahindra has only one rupee neurological research is the be added. And the other already registered each, thus making it Centre for Brain Research R100 crore is earmarked for the land and Bharat Gas affordable for daily wage (CBR) at Indian Institute of investments in SKAN and Coimbatore has helped her by labourers, their families Science, Bangalore (IISc). The direct projects within it. u supplying the LPG cylinders and tourists. u

u 65 u april 19-may 2, 2021 Interview Business India u the magazine of the corporate world

‘We plan to work towards revival’

The real estate sector is passing through one of its most difficult times, says Harsh Vardhan Patodia, president, CREDAI National. In conversation with Arbind Gupta, he enumerates the challenges and the measures required to handle this scenario

Given the second wave of the leading to near-zero demand. While tough. What are your expectations pandemic setting in, how is the real the housing sales numbers improved from thegovernment in terms of estate sector placed atpresent? in the fourth quarter of 2020 on the policy measures and other sops? The Indian realty industry has faced back of low-interest rates, pent-up The year 2020 was full of challenges many hurdles. Real estate has been demand and the festive season, the for livelihoods and the overall resilient to challenges it has faced year-on-year sales numbers were at economy of the country, sparked over the last few years. The focus now least 47 per cent less than the pre- by the Covid-19 pandemic. The is to bring business back and further Covid-19 sales graph. economic and policy reforms and consolidate on the positioning of The proactive government stimulus packages announced by the `Real Estate’ as the most preferred initiatives, contactless financing to government do not meet the scale investment option. The resurgence home-buyers by the finance industry, and size required for the recovery of will take a couple of years, but in this and renewed NRI interest were all the sector, which needs many more version 2.0 of CREDAI, we shall adapt pointed towards recovery in the sector. interventions that shall propel both a more pro-active approach to the But the key to its early recovery was demand and supply. The government issues at hand. The first quarter this the industry’s quick adjustment to the should consider increasing tax sops year has witnessed a robust 44 per post-Covid world, with technology on the purchase of residential units cent growth as per the Knight Frank playing a key role in reaching new that would help create a ripple effect report, but the recent surge in Covid- customers. CREDAI members across on the overall economy. Allowing 19 infections in the country and fear the country have collectively donated GST input tax credit for both housing of a second wave might hamper the more than R150 crore for relief of and commercial segments, faster recovery in the real estate sector, construction workers hit. environment clearance and easier witnessed in the last six months. If credit availability would help in logistics and supply chain support Going forward, what are the positive and upward growth of are available and migrant labour is measures the industry is likely to the sector. It is high time that the on site, there will not be a problem. take in overcoming the challenging government steps in and controls In case of a complete lockdown, the times? the steep hikes in the prices of buyer’s sentiment may get impacted. The Covid-19 situation has increased construction raw materials including We hope things will get back to focus on the installation of cement and steel. normal soon. collaborative technology and PropTech for business. Sensing this, CREDAI How is CREDAI as an industry body How has the last 12 months been for has decided to back start-ups in the positioning itself in the given the industry? real estate industry, including those situation? The Indian real estate industry was helping in technological advancement. CREDAI, as an apex body, is rebooting on the verge of a transformation The safety of the workers from the itself post the Covid-19 pandemic in early 2020. Having undergone virus is too important in the current lockdown. We plan to consolidate several structural reforms in the situation. Our developers are following and work towards the revival of the preceding years, the sector was finally all the necessary Covid-19 guidelines sector, engage with the government beginning to bear fruit until Covid-19 to contain the spread of the virus, at for further rationalisation of the tax hit India. Construction activities were sites. CREDAI has also announced the regime and secure infrastructure brought to a sudden halt in the first free vaccination drive to 25 million status for real estate. CREDAI shall also quarter due to the Covid-19 induced construction workforce at its member focus on encouraging start-ups in the lockdown and the uncertainty over developer sites. sector and plans to strengthen its data jobs and livelihoods robbed the assimilation strategy and position market of its potential buyer-base, The situation is again becoming itself as the rightful industry leader.u

u 66 u april 19-may 2, 2021