THURSDAY, 3 JANUARY 2019

18 pages in 1 section www.business-standard.com

MUMBAI (CITY)
~8.00
VOLUME XXIII NUMBER 101

THE MARKETS ON WEDNESDAY Chg#

Sensex 35,891.5 363.1
Nifty 10,792.5 117.6 BRAND WORLD P16 BACK PAGE P18
Nifty Futures* 10,830.9 38.4
Dollar
Euro
~70.2
~80.2
~69.4**
~79.5** BRANDS TRESS UP FOR UN RAISES QUESTIONS ON
THE BEAUTY BOOM INDIA’S FOREST COVER DATA
Brent crude ($/bbl)## 54.4## 52.8**
Gold (10 gm)### ~31,810.0 ~275.0
*(Jan.) Premium on Nifty Spot; **Previous close;
# Over previous close; ## At 9 pm IST;
### Market rate exclusive of VAT; Source: IBJA PUBLISHED SIMULTANEOUSLY FROM AHMEDABAD, BENGALURU, BHUBANESWAR, CHANDIGARH, CHENNAI, HYDERABAD, KOCHI, KOLKATA, LUCKNOW, MUMBAI (ALSO PRINTED IN BHOPAL), NEW DELHI AND PUNE

OIL JUMPS 4%, BUT

DEMAND CONCERNS Swap ratio fixed for Dena, Munjal proposes,
STILL WEIGH
Oil prices rose 4 per cent in choppy trading
on Wednesday, but concerns remained
Vijaya merger with BoB Bajaj disposes
about rising crude production and
weakening global economic growth which
HeroMotoCorpCMDwantsGSTratecutto18%,
could hurt demand for oil. Brent crude BajajMDsaysindustryshouldn'trelyongovtsops
futures rose $2.38 to $56.18 a barrel, a 4.4
per cent gain, by 11:27 am EST after earlier
Vijaya Bank WHERE THEY STAND SHALLY SETH MOHILE
falling as low as $52.51. US West Texas shareholders to get | Bank of Baroda | Vijaya Bank | Dena Bank Mumbai, 2 January
Intermediate crude futures rose $2.09 to
402 shares of BoB

4.33

11.7
$47.50 a barrel, a 4.6 per cent gain, after The heads of India’s two biggest
sinking to $44.35. 18 >
for every 1,000 two-wheeler makers have divergent views

24,174.50
on the goods and services tax (GST) rate.
shares held; Dena

6,082.90

4.9
THE SMART INVESTOR P10 Pawan Munjal, chairman and manag-

3.8
1.26
> Markets fall on fear of global slowdown ing director of Hero MotoCorp, is rooting
investors to get

1,153.80
for an urgent cut in the GST on two-wheel-

0.59
U K Sinha to head RBI 110 shares ers from 28 per cent to 18 per cent, saying
these vehicles provide basic mobility to
committee on MSME SHREEPAD S AUTE & ANUP ROY
Advances
(in~trn)
Adjusted net
worth* (in~cr)
Net NPAs
(in%)
the masses. Rajiv Bajaj, managing direc-
tor and CEO of Bajaj Auto, however, dis-
The Reserve Bank of India formed an expert Mumbai, 2 January agrees. “The industry shouldn’t expect “GIVEN THAT TWO-WHEELERS
committee on micro, small & medium anything from a government that has to PROVIDE BASIC MOBILITY TO
No.of employees** No. of branches**

T
THE MASSES, THERE IS AN
13.6

enterprises (MSMEs), as announced in the he Union Cabinet on Wednesday bail out IL&FS (Infrastructure Leasing &
| = 100
10.1

Monetary Policy Committee statement in gave its nod to the proposed Financial Services) and Air India. It should URGENT NEED TO REDUCE
5,502
11.9

December. According to the RBI, a compre-
hensive review must be done to identify
causes and propose long-term solutions
for the economic and financial
sustainability of the sector. The panel
would be headed by U K Sinha, former
chairman of the Securities and Exchange
Board of India.
RELATED REPORTS
ECONOMY P7
Govt tables Bill to allow
voluntary use of Aadhaar
The government on Wednesday
introduced a Bill in the Lok Sabha that will
allow individuals to offer voluntarily
biometric ID Aadhaar as a means of
identity verification for obtaining services
such as opening a bank account and
getting a mobile phone connection.
ON
merger of Vijaya Bank and Dena
Bank with Bank of Baroda (BoB).
The merger will be completed by
April 1, to create the country’s second-
largest public sector bank. The merged
entity will also be the third largest in terms
of assets, after State Bank of India (SBI)
and HDFC Bank. The assets of the three
entities combined, as of September 2018,
P4 were ~10.44 trillion, trailing SBI (~34.86
trillion) and HDFC Bank (~11.70 trillion).
BoB will be the transferee bank and
VijayaBankandDenaBankwouldactasthe
transferor banks, a statement from the gov-
ernment said, indicating that the larger
bank would subsume the other two and
continue its identity. Hence, there is unlike-
ly to be a change in name, even as the term
preferred by the government and the banks
is “amalgamation”.
The boards of the banks met to
approve the swap ratios on Wednesday.
For every 1,000 equity shares of Vijaya
Bank and Dena Bank, respectively,
investors will get 402 and 110 equity
shares of Bank of Baroda, according to a
BSE notification.
According to a senior banker with one
56,361
15,874 13,440
CAR
(in%)
NPAs: Non-performing assets; CAR: Capital adequacy ratio; *Net worth minus net NPA; **As of June 2018; other figures
are for September-end
communicated how the top management
would be placed in the merged entity.
Dena Bank is headed by Karnam Sekar,
Vijaya Bank by R A Sankara Narayanan,
and Bank of Baroda by P S Jayakumar.
Based on Wednesday’s closing prices,
the share exchange ratio seems to be in
favour of Bank of Baroda. For Dena Bank,
the ratio is at a sharp 27 per cent discount,
and 6 per cent for Vijaya Bank. According
to analysts, the market was expecting that
the share-exchange ratio would be slight-
ly more in favour of Dena Bank.
“By favouring the stronger BoB, the gov-
ernment has broken the market’s distor-
tion of share-exchange ratio,” said G Cho-
Bankof
Baroda
2,129
VijayaBank
1,858
DenaBank
Source: Capitaline
& Advisory. “It is also acquiring high-qual-
ity Vijaya Bank at around 15 per cent dis-
count as compared to the ratio of their adj-
usted book values,” Chokkalingam added.
Dena Bank would also pull down the
asset quality of the merged entity, ana-
lysts said.
“The financials of BoB are likely to be
diluted during the initial phase of the
merger, mainly because of the bad loans
of Dena Bank. Also, technology change,
possible NPA (non-performing asset)
provisions requirements, etc, are likely to
take a toll on near-term earnings of BoB”
said Lalitabh Shrivastawa, assistant vice-
president at Sharekhan.
focus on products and not rely on govern- THE GST RATE ON
ment sops,” Bajaj told Business Standard. TWO-WHEELERS”
Ahead of the implementation of critical PAWAN MUNJAL,
CHAIRMAN & MD, HERO MOTOCORP
regulations like the Bharat Stage VI stan-
dards, which take effect from April 1, 2020,
and the disruptions facing the automobile
industry, the statements by the top bosses
of the two companies show a difference of
opinion among the industry players.
“Given that two-wheelers provide basic
mobility to the masses, there is an urgent
need to reduce the GST rate on two-wheel-
ers from the 28 per cent bracket of ‘luxury
goods’ to that of 18 per cent for mass-usage
items,” Munjal said in a statement on
Wednesday. His remarks come against the
backdrop of slowing two-wheeler sales of
Hero and others in the domestic market “THE SPORTS SEGMENT IS
after years of double digit growth, which
GROWING AT 25% ALTHOUGH
helped India take the pole position from
China as the world’s largest market for
PRODUCTS HERE ARE 50%
motorcycles and scooters in 2017-18. In
MORE EXPENSIVE THAN IN THE
December, sales at market leader Hero skid MID-COMMUTER SEGMENT.
4 per cent to 453,985 units over the year- SO, I DON'T THINK THAT
ago period. Munjal attributed a muted REDUCING THE GST IS
third quarter to the increased cost of two- NECESSARILY THE ONLY
wheeler insurance ahead of Diwali and the
prevailing liquidity crunch.
ANSWER”
RAJIV BAJAJ,

SPECIALS
THURSDAY of the banks, the government has not kkalingam, founder, Equinomics Research Turn to Page 6 > Turn to Page 6 > MD & CEO, BAJAJ AUTO

PERSONAL FINANCE:
Managing assets
when you split
It isn’t just the assets, even liabilities
such as car or home loans can be a
cause for concern in a divorce, writes
SWARNAMI MONDAL
PRIVATE EQUITY:
Fillingtherealtyfundinggap 6 >
Motilal Oswal, HDFC Capital, Xander and
other PE funds focused on this segment
find opportunity in NBFC retreat, writes
RAGHAVENDRA KAMATH
STRATEGY:
Micromax’sSouthAfricaplay 15 >
Offering bundled products and targeting
big retail will be the key planks of phone
maker’s growth strategy, writes
SHUBHOMOY SIKDAR
ECONOMY&PUBLICAFFAIRS:
Wading through many hurdles
to meet power dreams 4>
Bihar had, in October, declared full
electrification. BS returns to some villages it
visited in 2015 to assess the change in a
two-part series , writes JYOTI MUKUL
Jet defaults, rating plunges
ANEESH PHADNIS & ANUP ROY
Mumbai, 2 January
14 > Jet Airways has defaulted on loan repayment that was
due at the end of December, in yet another sign of a
serious financial crisis at the country’s second-largest
airline by market share. Jet’s lenders will now have to
initiate the process for resolution of stressed assets
within 180 days in accordance with Reserve Bank of
India norms.
Over the past several months, the airline has strug-
gled to pay vendors and staff salaries on time. The latest
default has prompted ICRA to assign a ‘D’ rating to the
airline’s ~10,963-crore fund and non-fund based facili-
ties. This is the seventh rating downgrade for Jet since
March 2017. Loan instruments which are in default or
those expected to touch that mark soon are assigned a
‘D’ rating, according to the rating agency.
A senior official at the Directorate General of Civil
Aviation said the regulator would carry out a fresh
financial audit of the airline following the default. This
is to ensure that financial stress does not impact the air-
line’s safety. The airline’s stock fell 6.16 per cent and
closed at ~263.75 on the BSE on Wednesday.
In a stock exchange notification, the airline said pay-
ment of interest and principal amount due to the con-
sortium of banks led by State Bank of India on December
31 was delayed to temporary cash flow mismatch and the
company has engaged with banks on the same. It shared
no further details.
REALTORS PIN HOPES ON Cong, BJP trade
JET AIRWAYS INTRA-DAY
GST CUT TO END WOES fresh barbs over
Rafale jet deal
With Prime Minister Narendra Modi
BSE price in ~ reiterating his plan to bring down the
goods and services tax (GST) rate for under-
construction and finished houses to 5 per
cent, real estate firms believe 2019 could be ARCHIS MOHAN
the turnaround year for the industry that has New Delhi, 2 January
been suffering for six years. In an interview to
6.16% news agency ANI on Tuesday, Modi indicated The issue of alleged irregularities in the pur-
that the government wanted to bring under- chase of Rafale fighter jets, which seemed to
construction and finished houses under the have lost its political relevance after the
Source:Bloomberg
GST rate slab of 5 per cent. “We wanted to do December 14 order of the Supreme Court,
Naresh Goyal, founder & chairman, Jet Airways
that. But there were reservations. So, the GST got a new lease of life on Wednesday. Armed
Council could not do it. It has now gone to the with an audio clip, containing a purported
The default comes at a time when the airline is seek- committee. We will try to ensure that the conversation between a Goa minister and a
ing fresh capital and loan restructuring. As of September committee report is expedited,” Modi had journalist, Congress President Rahul Gandhi
end, the airline had a debt of ~8,200 crore. It has a said. Experts said prices of homes could go launched a fresh attack on the Narendra
monthly and quarterly interest payment schedule. down by as much as ~3 lakh under the Modi government on the issue. Goa Chief
Around ~165 crore of principal amount was due for proposed tax regime. Minister Manohar Parrikar and Union
repayment by December end, it is learnt. Discussions KARAN CHOUDHURY writes 3> Finance Minister Arun Jaitley, however,
have been held with strategic partner Etihad Airways for termed the audio clip as fabricated.
fresh equity and loan guarantees and with State Bank of Jaitley said the Congress president
India for conversion of debt into equity. had made it a habit of manufacturing
The lenders have asked the airline's promoters and lies and spreading falsehoods. He asked
investor to raise equity before agreeing to any restruc- Gandhi to authenti-
turing or fresh line of credit. cate the clip, and
Raising fresh equity would require Jet Airways warned that the Armed with
founder Naresh Goyal diluting his stake and ceding Congress leader an audio clip,
control — something which he has resisted so far. might have to face a containing a
Turn to Page 6 > privilege motion, and purported
even expulsion, conversation
if it turned out fabri- between a Goa
cated. minister and a

Task force report on jobs data kept in cold storage The Congress journalist,
leader maintained Cong president
that the clip was gen- launched a fresh
uine and challenged attack on govt
Arvind Panagariya submitted the report to PMO a day before demitting office in August 2017 Prime Minister
Narendra Modi for a one-on-one debate on
SOMESH JHA and private estimates painted a grim picture of government to institute a “time-use survey” to strategic issues. The Congress, other opposi-
WHAT THE FINAL REPORT SAID New Delhi, 2 January job creation under the Narendra Modi
government. The findings of the report were
collect data on how individuals spend their time
over a specific period, and a targeted survey to
tion parties, and even Bharatiya Janata Party
(BJP) ally Shiv Sena persisted with their
| Present household surveys are insignificant A day before demitting office as NITI Aayog significant as it gave directions to the government collect data from migrant workers. demand for a joint parliamentary committee
and enterprise surveys exclude vice-chairman in 2017, Arvind Panagariya on key changes to be made in the employment The final report pointed to serious flaws in the (JPC) probe into the Rafale deal.
non-agricultural workers submitted the final report of the task force he statistical framework. Economic Census, of all non-agricultural Gandhi, first in the Lok Sabha during a
| Economic Census, which is used in sampling chaired for recommending improvements in “Theproposedsystemwouldleadtothe establishments, conducted by MoSPI. Six discussion on the issue under Rule 193 of the
jobs data, does not accurately cover the jobs data. Even as a draft version was put up in generationofcomprehensiveemployment, Economic Censuses have been conducted so far House, and later at a press conference at his
the public domain, the government did not make unemployment,andwageestimatesona and the seventh one will begin shortly. party’s headquarters here, said the Modi
entire universe of enterprises
the final report public. sustainedbasis,”thereportnoted,addingithad The task force felt that a monthly household government followed a questionable
| Administrative sources such as EPFO ThereportsubmittedbyPanagariya identifiedsurveysandcensusesaimedatcreating survey was the ideal way of mapping job creation process in selecting Rafale jets and pur-
and govt schemes can provide data tothePrimeMinister’sOffice(PMO) asystemconsistentwith“ourneedsandmeeting in the country, but noted it might not be “imme- chased them at inflated prices. He also
on formalisation but not widely used so far onAugust30,2017,hadsignificant modern-dayinternationalstandards”.However,it diately feasible” and the upcoming series of accused the PM of favouring industrialist
| There's a need to shift to monthly changesfromitsdraftversion. didnotgivethe“detaileddirectiononthedesign quarterly and annual job surveys, known as the Anil Ambani.
household surveys, like in the US, in the BusinessStandardhasrevieweda ofsurveysandcensuses”,whichthetaskforcefelt periodic labour force survey, conducted by the In the morning, the Congress released
copyofthefinalreport,whichis couldbedelegatedtostatisticalagencies. National Sample Survey Office, can fill the the audio clip of a purported conversation
long term, which should be principal
availablewiththePMO,Ministryof PrimeMinisterNarendraModihadhimselfem- “current vacuum” in the availability of infor- between Goa Health Minister Vishwajit
instrument of jobs estimates LabourandEmployment, phasisedtheabsenceofreliablestatisticstomea- mation related to the country’s labour market. Rane and another person. In the recording,
| MoSPI should initiate a MinistryofStatisticsand surejobs,inhisinterviewswithvariousmedia The report recommended “exercising caution the person identified as Rane said that dur-
time-use survey with a lag of ProgrammeImple- organisationslastyear,sayinghowalackofdataon in drawing inferences” on employment numbers ing a Cabinet meeting last week, Parrikar
three years and a targeted mentation(MoSPI), jobswasabiggerproblemthanjobcreationitself. from enterprise surveys and suggested a slew of had told his colleagues he had "an entire
survey to collect data from andNITIAayog. One of the highlights of the panel’s final report alternatives, including an annual survey of file" on the Rafale deal in his bedroom,
migrant workers The task force was a recommendation to conduct monthly companies using the Goods and Services Tax which could prove to be embarrassing for
was set up by the estimates of employment in rural and urban Network (GSTN), while also verifying the GSTN as the BJP leadership.
ARVIND PANAGARIYA, PMO in May 2017 areas in the long term, instead of relying on a sample frame against other enterprise registers. Both Parrikar and Rane later denied this.
Former NITI Aayog vice-chairman
after various official enterprise-based surveys. It further asked the Turn to Page 6 > Turn to Page 6 >
2 COMPANIES
STOCKS > Eicher Motors
IN THE NEWS
* OVER PREVIOUS CLOSE
> .
IN BRIEF
TN moves Supreme Court
on NGT’s Vedanta order
TheTamilNadugovernmentonWednesdaymovedtheSupreme
CourtchallengingtheNationalGreenTribunal’s(NGT)orderallow-
ingVedantatoreopenitsSterlitecopperplantatThoothukudi.The
NGThadonDecember15setasidethestategovernment’sdecision
toshutdowntheSterliteCopperplant,termingit“non-sustain-
ableandunjustifiable”.Thetribunalalsodirectedthestatepollu-
tioncontrolboardtopassafreshorderofrenewalofconsent,
pavingthewayforreopeningtheplant.Thereis,however,astay
inplaceowingtoanorderpassedbytheMadrasHighCourt.The
highcourthadonDecember21directedmaintenanceofstatus
quowithrespecttoSterliteCopperplant,thushaltingthe
reopeningoftheunit.Vedantahasalsoseparatelymovedthe
apexcourtagainstthehighcourt’sorder.
Hetero acquires
Tarbis Farma
in Spain
Hyderabad-basedHeteroGr-
ouponWednesdayannoun-
cedthatitsEuropeanarm
AmaroxhasacquiredTarbis
Farma,SLU,apharmafirm
operatinginSpain,foranun-
disclosedamount.TarbisFa-
rmacomeswithaproduct
portfolioandanextensive
marketingnetworkinretail
businessacrossSpain,the
companysaid.Theacquisition
enablesHeterowithastrong
front-endmarketingprese-
ncegivingAmaroxtherequ-
iredcommercialinfrastruc-
ture,productportfolio,man-
power,itsaid. BS REPORTER<
HSBC Daisy moves
contempt petition
against RInfratel
HSBCDaisyInvestments(Maur-
itius)onWednesdaymoveda
contemptpetitionagainstRel-
ianceInfratelattheNational
CompanyLawAppellateTribu-
nal(NCLAT)asthelatterfailedto
makepaymentof ~230croreby
theagreedupondeadlineof
December27.RelianceInfratelis
anarmofRelianceCommuni-
cations.Thepetitionwas,how-
ever,disposed-offbythetwo-
membertribunalontechnical
groundsasthepetitionmoved
bytheHSBCwasfaulty.HSBC
Daisyhasbeenallowedtomove
theappellatetribunalwitha
freshapplication. BS REPORTER<
Flipkart, Amazon
to team up against
new e-com policy
KARAN CHOUDHURY
New Delhi, 2 January
Fearing a populist and tilted e-
commerce policy, online mar-
ketplace giants Flipkart and
Amazon are planning to form a
united front. Taking the help
of industry bodies Confeder-
ation of Indian Industry (CII)
and Federation of Indian Cha-
mbersofCommerce&Industry
(Ficci), e-commerce firms, alo-
ng with investment giants such
as SoftBank, Tiger Global, Seq-
uoia,andNaspers,areplanning
to have a dialogue with the gov-
ernment soon, it is learnt.
According to sources, the
additional guidelines, which
put a stop to flash sales and bar
online marketplaces to sell via
vendor firms they have stake
in, have caught the players off
guard. Players fear that in the
run-up to the general elections,
populist steps being taken to
appease traders will have a
direct impact on the long-
pending e-commerce policy.
“There is tangible fear that
the government might make a
policy that makes it unviable
for Amazon and Flipkart to
continue business in India.
They will have to completely
revamp the way they work and
whatever they have achieved
inthecountrytillnowwouldall
dial back to zero. The sector is
now planning to take the help
of industry bodies such as CII
and Ficci, as approaching the
government via them would be
much smoother,” said a source
close to the developments.
Industry experts believe e-
commerce firms, especially
Amazon India and Flipkart, are
being unnecessarily targeted as
offline retailers have for long
owned private labels. “Physical
retailers also have private lab-
els. It is a legitimate business
practice. There is no reason to
single out e-commerce firms.
It is not a publicly held firm, so
Royal Enfield December
sales down 13% to
58,278 units y-o-y
~23,184.00 PREVIOUS CLOSE
~21,164.05 CLOSE
8.71% DOWN*
BS REPORTER<
Suzuki Motorcycle
sales up 34%
in December
SuzukiMotorcycleIndiaon
Wednesdayreporteda33.82per
centjumpindomesticsalesin
Decemberat43,874units.The
companyhadsold32,786units
inDecember2017,SMIPLsaid.In
theApril-Decemberperiodof
thecurrentfiscal,thefirmsolda
totalof5,45,683units,up30per
centfrom420,736unitsinthe
sameperiodofpreviousfiscal
year,itsaid.“Asweheadinto
thefinalquarterofthisfinancial
year,notonlyarewewell-poi-
sedtomeetthe750,000unit
salestarget;butarealsonow
lookingforwardto2019that
promisestobeevenbigger,"
ManagingDirectorSatoshi
Uchidasaid. PTI<
Ashok Leyland buys
27.25% stake in
Ashley Aviation
Hindujagroup’sAshokLeyland
onWednesdaysaidithasacqu-
ired27.25percentadditional
stakeinAshleyAviation,raising
itsshareholdinginthefirmto
76.25percent.Thefirmhas
acquired1,089,985sharesof~10
eachconstituting27.25percent
inthepaid-upsharecapitalof
AALatapriceof~5.10pershare,
AshokLeylandsaid.Thefirm
saidithasacquiredtheshares
for~55.59lakh.Consequentto
this,thefirm’sshareholdingin
AALhasincreasedfrom49per
centto76.25percent,itsaid. PTI<
they have every right to have a
run with their business plans.
Let the Competition Comm-
ission of India look into any iss-
ues, if there are any,” said Arv-
ind Singhal, chairman,
Technopak Advisors.
The companies believe that
if they have to shut down or cut
down the amount of business
they do from their private lab-
els, it would have an impact on
the number of direct and indi-
rect jobs they provide and mi-
ght have to rethink their expan-
sion plans in the country.
The policy has for long been
a cause for concern for the bur-
geoning digital marketplace
sector in the country. Early last
year when the draft e-com-
merce firm was announced,
many alleged it to be one-sided
and highly tilted towards Ind-
ian firms and traders.
SoftBank Group had then
writtentotheNITIAayog,com-
merce ministry as well as offi-
cials of the finance ministry,
asking them to keep in mind
the interests of investors and
other stakeholders before final-
ising the e-commerce policy.
Trader bodies such as Con-
federation of All India Traders
(CAIT) and Swadeshi Jagran
Manch have been constantly
putting pressure on the gov-
ernment to bring out an e-com-
merce policy that keeps in mi-
nd the interests of traders.
“The business communi-
ty of the country stands in sol-
idarity with the government
on issue of changes made in
the FDI policy in e-commerce
for bringing transparency, lev-
el playing field, and fair com-
petition. It brings to end an
era of unethical business prac-
tices of exclusivity, predatory
pricing, deep discounting,
and loss funding being con-
stantly adopted by global e-
commerce players,” said
Praveen Khandelwal, secre-
tary-general, CAIT.
MUMBAI | THURSDAY, 3 JANUARY 2019
> Jet Airways (India)
Icradowngrades
> TVS Motor Company
Decembersalesup6%
> JSW Steel
Toploseramong
> Future Retail
Declines 17% in six days
long-termratingonbonds atunits271,395y-o-y NiftyMetal after new e-commerce
andloanstoDfromC indexstocks FDI norms
~281.05 PREVIOUS CLOSE ~565.20 PREVIOUS CLOSE ~303.55 PREVIOUS CLOSE ~495.60 PREVIOUS CLOSE
~263.75 CLOSE ~535.00 CLOSE ~288.70 CLOSE ~469.35 CLOSE
6.16% DOWN* 5.34% DOWN* 4.89% DOWN* 5.30% DOWN*
PETROL AND DIESEL SALES
Confusion over margin math of OMCs
SHINE JACOB Global Financial Services on Decem- based on a formula. The cut of ~1 is not
New Delhi, 2 January ber 31, the GMM on diesel and petrol part of our petrol and diesel prices, due
stood at over ~7 a litre each. to a lower pricing regime.”
O
n October 4 last year, oil mar- AReuters reportsaidonWednesday The finance ministry, too, had cut
keting companies (OMCs) had that state-owned fuel retailers had its production tax on the two fuels by
absorbed ~1 as marketing mar- stopped absorbing a government-man- ~1.50 a litre in October, when prices of
gin on the prices of petrol and diesel dated cut of ~1 a litre in their marketing petrol touched ~84 a litre and diesel
after international crude oil prices margins due to a steep fall in global oil was at ~75.45 a litre.
crossed $80 a barrel. prices. Responding to this, IOC chair- On Wednesday, prices of petrol
But despite crude price dipping to man Sanjiv Singh said: “We have not touched a 15-month of ~68.65 a litre in
around $53 a barrel on Wednesday, recouped the prices that were absorbed Delhi, while diesel was seen at ~62.66 a
down 33 per cent from the October in the month of October.” litre. In the last three months, the prices
high, there is still lack of clarity on This comes at a time when the of petrol came down by over ~15, while
whether Indian Oil Corporation (IOC), In October, finance ministry had cut its production tax on the fuels by ~1.50 a Emkay report highlighted that for the that of diesel by around ~13 a litre.
Bharat Petroleum Corporation Ltd litre and had asked OMCs to reduce their marketing margins by ~1 a litre to
(BPCL) and Hindustan Petroleum insulate consumers from a surge in global oil prices at the time PHOTO: REUTERS
thirdquarterofthefinancialyear,GMM
on diesel and petrol on a fixed refinery
Singh added that IOC has been
adjusting retail prices on a daily basis
Corporation Ltd (HPCL) stopped transfer price (RTP) basis stood at ~2.5- after factoring in the ~1 a litre absorp-
absorbing ~1 as marketing margins. marketing margin (GMM) on both ing up for losses and preparing them- 2.8 per litre. RTP is the price paid by tion. The absorption in marketing mar-
On Wednesday, various reports by petrol and diesel of above ~5 a litre,” selves for a likely hold in prices dur- OMCs to the refineries. gin for a day was supposed to wipe the
OMCs and media firms added to the said an industry source. ing the upcoming elections. HPCL Chairman and Managing annual profit of OMCs by ~4,500 crore
confusion. “OMCs are having gross He added that the firms are mak- According to a report by Emkay Director M K Surana said: “Pricing is during financial year 2018-19.
TRAI MOVES SC AGAINST TDSAT
ORDER ON PREDATORY PRICING Higher digital spends to
boost IT budgets in 2019
The Telecom Regulatory
Authority of India (Trai)
has approached the
DEBASIS MOHAPATRA
Supreme Court against
Bengaluru, 2 January
the Telecom Disputes
Settlement and Clients of big information tech-
Appellate Tribunal nology (IT) services companies
(TDSAT) order, which are likely to increase their bud-
dismissed its predatory gets this year, after not doing so
pricing tariff rule, Parlia- for the past few years, claim
ment was informed on experts and analysts tracking
Wednesday. “Trai has the sector. Discretionary expen-
diture in new technologies,
filed an appeal before
needed to stay relevant, is going
Hon'ble Supreme Court
against the order of
IN OCT, JIO GAINED 10.50 MN USERS, MORE to be the source of the budgetary
Hon'ble TDSAT dated 13th THAN WHAT AIRTEL & VODAFONE IDEA LOST expansion.
According to experts and
December, 2018. The
appeal is yet to be
Trai’s wireless and wireline subscription numbers for
October show Vodafone Idea lost 7.36 mn users, higher
analysts, most outsourcing
deals in 2019 will be led by new TECH PUSH newer technologies are becom-
ing more main-stream now,”
listed," telecom minister than their combined subscriber losses in the previous two technologies, which will be A Gartner report claims said Mindtree Chief Executive
Manoj Sinha said in a bundled with traditional serv- global IT spend would cross Officer Rostow Ravanan.
months leading to the merger. Compared to September, ices. This will lead to a bigger ~70.5 trillion in 2019 — a The Bengaluru-based com-
written reply to the Lok mobile number portability requests in October went down
Sabha. Under the size of outsourcing contracts. growth of 4.7% pany is currently gathering
from 5.02 million to 3.2 million COMPILED BYROMITAMAJUMDAR A recent report by Gartner Demand will come data points from clients regard-
predatory pricing tariff
claimed global IT spend would engineering, insurance, ing their IT budget, which it
rule, Trai had barred Netaddition/ loss towireless subscriber base (in mn) cross $1 trillion (~70.5 trillion consumer-packaged goods, will collate by the third week
telcos with over 30 per Oct-18 Sep-18 Aug-18 according to exchange rates on and retail sectors, an Everest of this month for its future
cent market share from 10.50 Wednesday) in 2019 — a Group official says planning.
offering services at a growth of 4.7 per cent. This is Spending on IT Infra and In 2018, IT services indus-
price which is below the good news for the export-driv- enterprise application try had seen good momentum
average cost of service en IT-services industry in expected to decline in large-deal space, which was
that are intended to 0.01 India, which is now better not the case in earlier years.
reduce competition or placed to corner a larger share Industry leader Tata Con-
-1.86 of this augmented budget after ing” — clients using technolo- sultancy Services had bagged
eliminate the comp-
increased investments in ex- gy in-house at their offshore deals worth more $5 billion;
etitors. The regulator has -7.36 panding their digital as well as centres. Infosys had bagged large con-
also said that telcos will consulting capabilities. Despite the projection of a tracts worth nearly $1 billion.
have to provide services Incumbents 16,340 “At this time, we are seeing a slower pace of growth, analysts Similarly, Wipro had won a $1.6-
8,894
to all subscribers availing gainedwireline continuation of last year’s said the slowdown would be billion worth contract from
the same tariff plan in a subscribers, robust spending on IT-related mostly in legacy side of busi- Alight Solutions in September
non-discriminatory however, investment in the first two quar- ness. Those companies with last year — the largest ever for
manner. However, the 90,000wireline ters of this year. Most of the higher digital capabilities would the company.
same was dismissed by subscribers demand will come from verti- bag more number of contracts. “What is changing now is
TDSAT in an order dated disappeared -93,884 cals such as energy and engi- “The big change in 2019, com- that a lot of large IT outsourcing
fromthesystem BSNL+MTNL Vodafone Airtel neering apart from insurance, pared to 2018, is that adoption deals are coming to the market.
TOTAL
December 13, 2018, citing
-258,486 22,941 47,770 consumer-packaged goods, and of cloud technology and every- As digital moves from consult-
lack of transparency in retail,” said Peter Bendor-Sam- thing as a service,” said Sanjoy ing to implementation, the deal
the guidelines over uel, founder and chief execu- Sen, doctoral research scholar sizes are going to be larger,” said
determining market Jiocontinues to lead broadband Airtelcontinues to top
marketshare (wired +wireline) active subscriber base in tive officer of global research at Aston Business School, UK. Pareekh Jain, an outsourcing
share and rates of serv- (%) October firm Everest Group. He said despite every solution advisor and founder of Pareekh
BSNL Airtel (%)
ices.InFebruary2018, After remaining flat, IT being used as a service, IT Consulting.
Traisaiditwouldimpose 4.09 20.44 Airtel 99.57 spending had picked up spends are set to grow. He, however, said big serv-
financialdisincentiveof Vodafone Vodafone 94.47 momentum in the second half Industry players also said ice providers are going to ben-
upto~50lakhpercircle Idea Idea 92.52 of 2018. Bendor-Samuel, how- digital services will go main- efit more from these changing
Jio Jio ever, said though the banking, stream this year. “We are seeing dynamics, as they can combine
onoperatorsiftheir 20.43 82.26
52.96 financial services and insur- digital becoming larger and different offerings such as
serviceratesarefoundto BSNL 56.52
ance sector would continue to more enterprise-wide this year. automation, digital services,
bepredatoryinnature. Source: All numbers are from Trai October, September, and August telecom subscription spend IT services players might We also anticipate larger trans- and platforms for bagging mul-
data. Note: Vodafone Idea numbers have been combined for September and August
PTI (when they were listed separately) for ease of comparison only not benefit, thanks to “insourc- formational deals. In every way, ti-year deals.
‘Overall outlook for hospitality sector is better’
Nasdaq-listed Indian online travel company Yatra is confident of a break-even in the first quarter of FY20
as promotional cost is getting rationalised. DHRUV SHRINGI, co-founder and chief executive officer at Yatra,
tells Ajay Modi that the company’s business will continue to expand on the back of rising corporate as well
as consumer travel bookings. Edited excerpts:
How is the online hotel booking business Corporate and small and medium enterpris-
shaping up this year? es (SMEs) travel is the fastest-growing part of
A strong demand was visible in the first half the business. There are about 13,000 compa-
of the year and occupancy rates improved for nies in India, which account for a $10-billion
hotels. However, there is some turbulence in annual travel spend. We have over 700 cus-
the sector in the past couple of months tomers now and so there is more headroom
between some hotels and a couple of online for growth. More and more corporates today
aggregators. It could be a short-term blip. want to embrace technology. It makes billing
Parties on all sides realise the value each one process easier. There is better approval and
of them brings to the table and an equilibri- compliance as well as pricing. More and
um will be achieved sooner or later. The over- more SMEs also see a value in our offerings.
all outlook for hospitality sector is better.
How is the competitive intensity in online
What is leading to the decline in marketing travel space given the trend of discounting?
spend at Yatra? We have seen some rationalisation
Our business travel platform has happening. MakeMyTrip and goibibo
emerged as one of the largest plat- have brought down their levels of dis-
forms for corporate travelers in India. counting, Paytm is also not aggres- there. If you have been searching for hotels, Are you confident of a break-even
In corporate travel, the cost of acquisi- sively discounting, especially in cus- the kind of hotels you looked for will show in the next one year?
tion is not directly led on consumer tomer acquisition on the hotel side. up higher in the order. It is about making it We are getting to that stage. Our businesses
marketing hence we are able to rationalise The entire ecosystem seems to be moving more convenient for the customers. The today are in a relatively healthy stage. We
some of spends. The employees of these towards rationalisation. utopian scenario will be when I do not show feel that we will turn the corner in the near
organisations are the consuming Indian you thousands of hotels. term and maintain profitability unless any
middle class. We can access them at a much How is online booking experience evolving? We show you three of which you may macro event disrupts the demand.
lower cost of acquisition. Both these are A lot of personalisation is being offered. book one. That is how the offline travel
playing well in creating a symbiotic relation- Technology today allows you to build a per- bookings used to take place. The agent knew What is the fund available on Yatra’s
ship between business travel and consumer sonal relationship with the customers keep- the preferences. Online travel brought trans- balance sheet?
acquisition. ing in mind their preferences. If you have the parency and power to consumers but it also We have ~500 crore in funds. For the organic
Yatra app, your upcoming trips will start brought information overload. Now, the growth, we are sufficiently capitalised. We co-
What is helping the growth in corporate showing on the home screen frequently. You onus is on us to sift through that overload ntinue to look for acquisitions. We did a large
travel business? may want to reschedule or cancel from and provide the relevant options. one in 2017 and we continue to look out.
.
MUMBAI | THURSDAY, 3 JANUARY 2019 COMPANIES 3 <

Realtors pin hopes on GST cut to end woes
Hefty rate benefits EXPECTED SAVINGS
may spur industry | Scenario 1: If 8% GST is
out of six years of levied, a homebuyer will
save as much as ~1.6 lakh
struggle, say experts on a property with a super
built-up area of 1,000 sqft
KARAN CHOUDHURY (carpet area 780 sq ft) and
New Delhi, 2 January
priced at ~6,000 per sqft
ation positively. Also, any reduction
on this basic input cost could help
boost prospects for under-construc-
tion properties that are already low in
demand, provided builders pass on
the benefits to consumers.
According to sources, a cut on GST
in real estate would be announced in
the next GST Council meeting to be
held on January 10. Sources said the fit-
ment committee of the Council had
Uber India FY18 revenue
zooms to ~21.5 crore
Cab-hailing platform Uber saw
its revenue growing manifold
from India business to ~21.5
crore in the fiscal ended March,
according to documents filed
with the corporate affairs min-
istry. The company, which
competeswithrivalOlainIndia
and other international mar-
kets, had posted a total revenue
of ~1.04 crore in 2016-17.
gence platform Tofler. While
Uber's losses mounted to $1.07
billion in the September quar-
ter, the firm had said it would
continue to invest in Uber Eats
and e-bikes and scooters busi-
nesses as well as in high-poten-
tial markets such as India and
the West Asia. "As we look
ahead to an IPO and beyond,
we are investing in future

W
ith Prime Minister Narendra
Modi reiterating his plan to
bring down the goods and
services tax (GST) for under-con-
struction and finished houses to 5
per cent, the real estate firms believe
2019 could be the turnaround year
for the industry that has been suf-
fering for the past six years.
In an interview to news agency
ANI on Tuesday, Modi indicated that
the government wanted to bring
under-construction and finished
houses under the GST rate slab of 5
per cent. “We wanted to do that. But
there were reservations. So, the GST
Council could not do it. It has now
gone to the committee. We will try to
ensure that the committee report is
expedited,” Modi said.
Experts said prices of homes could
go down by as much as ~3 lakh under
the proposed tax regime. “If a flat 5 per
cent GST is levied, a homebuyer will
save ~3 lakh on a property with super
built-up area of 1,000 square feet (car-
pet area 780 sq ft) and priced at ~6,000
per sq ft,” Anuj Puri, chairman of
Anarock Property Consultants, said.
This, according to experts, would
reduce the adverse impact on the land
abatement rate of 33 per cent being
offered under the present system. “The
composite rate of 5 per cent would not
only address the imbalance under the
present GST regime, which subjects to
under-construction projects but leaves
completed units out of its scope, but
| Scenario 2: If a flat 5% GST
is levied, a homebuyer
will save ~3 lakh on a
property with same area
and price mentioned above
also free the industry from the require-
ment of monthly returns for availing
input tax credit, which are cumber-
some,” said Jaxay Shah, president of
industry body Credai.
According to experts, the propos-
al to slash GST for cement and bring
it under the 18 per cent slab would
give a boost to housing and construc-
tion and impact employment gener-
zeroed in on two proposals.
The first one was to maintain a
fixed 12 per cent GST rate, including
full input tax credit to builders, which
would eventually make the effective
GST rate 8 per cent once the input cost
of land was accounted for and reduced.
The other proposal stipulates a flat 5
per cent GST to be applicable to under-
construction properties without
including the input tax credit benefit,
provided the builder purchases at least
80 per cent of the raw material from
GST-registered suppliers.
According to sources in the know,
the government might finally zero in
on the second option and add finished
houses to the mix as well.
Uber India Technology also growth across our platforms,
saw manifold jump in net prof- including food, freight, electric
it to ~19.6 lakh in 2017-18, com- bikes and scooters, and high-
pared with ~3.22 lakh in 2016-17, potential markets," Uber Chief
showed the documents, Financial Officer Nelson Chai
accessed by business intelli- had said. PTI
Gujarat tax dept moves NCLT against
Essar Steel’s resolution professional
The Gujarat state tax department has filed a petition against the
resolution professional of Essar Steel at the Ahmedabad Bench of
the National Company Law Tribunal (NCLT), seeking details of the
resolution plan. The tax department, which claims to have dues
of over ~500 crore from Essar Steel, had requested the resolution
professional for a verbatim report on provisions of the resolution
plan with regard to payment of its dues. However, in spite of
repeated reminders, the resolution professional did not provide

Tata, Adani Power: States miss deadline on Mundra tariff

any information, stating reasons of confidentiality, after which
the tax department filed its petition with the NCLT on December
19. The first hearing is scheduled for January 7. BS REPORTER

AMRITHA PILLAY
Mumbai, 2 January
Relief for Adani Power and Tata
Power may be delayed as some of the
states that procure power from the
firms’ Mundra units are yet to arrive
at a decision on tariffs. The Supreme
Court had set an eight-week dead-
line for doing so.
“The recommendations of the
high-powered committee (HPC) are
being discussed with various stake-
holders of the government and a
final decision is yet to be taken. I am
not aware if any of the other states
(except Gujarat) have taken a deci-
sion,” said Arvind Singh, principal
secretary, energy, government of
Maharashtra. Singh did not give a
timeline by when a decision was
likely to be taken.
Maharashtra is one of the five
states that procures power from the
Mundra units of the firms.
Rajasthan, Gujarat, Haryana and
Punjab are the others. Some buy
power from both.
A Tata Power spokesperson
said in an email response the pro-
posal was “under discussion with
various state governments who, in
turn, are in touch with their state
discoms and are expected to take it
to their Cabinet for approval. The
proposal will then be submitted to
CERC. We believe appropriate time
extension will be sought if
required”.
On October 29, the Supreme
Court had directed the Central
Electricity Regulatory
Commission (CERC) to decide
within eight weeks on approving
revised tariffs for Adani Power,
Tata Power and Essar Power for
their imported coal-based power
units in Gujarat. These units have
been struggling financially owing
to an increase in coal prices high-
er than the tariffs fixed in the pow-
er-purchase agreements (PPA).
Coal prices were higher than
expected due to a change in
Indonesia’s export policy for coal.
In December, the Gujarat gov-
ernment resolved to accept the
recommendations of the HPC in
giving some relief to Mundra ultra-
mega power project (UMPP). A top
official from Tata Power in
November had said that within
eight weeks, the states needed to
get the necessary approvals from
their respective cabinets, and
approach the CERC and the regu-
lator needs to clear it.
“Given the company’s PPA was
only with Gujarat, we have started
discussions for its revision after the
Gujarat government’s resolution in
December,” said an official from
Essar Power.
An email query sent to Adani
Power remained unanswered.
Tata Power operates a 4,000
Mw UMPP at Mundra and Adani
Power operates a 4,620 Mw power
unit there.
The expected revision based on
HPC’s recommendations, once
implemented, is expected to cut
down Tata Power’s Mundra losses
by half, with a 40-45 paise per unit
reduction in its under recoveries.
So far, company officials stated the
overall accumulated losses for
Mundra unit was ~9000 crore, for
which the company has already
provisioned.
COMPENSATORY TARIFF BATTLE
2012 APPOINTMENTS
Adani, Tata Power approach Central
Electricity Regulatory Commission
(CERC) for compensatory tariff
2014-2017
CERC rules in favour of a
compensatory tariff in February
2014
Buyers challenge decision at
Appellate Tribunal of Electricity,
Supreme Court
Supreme Court’s final decision
denies compensatory tariff for
change in foreign laws
2018
Gujarat moves SC to direct CERC
to allow for tariff revision
In October, SC directs CERC to
decide in eight weeks
In Dec, Gujarat resolved to allow for
tariff revision, other states pending
4 ECONOMY & PUBLIC AFFAIRS MUMBAI | THURSDAY, 3 JANUARY 2019

“The Congress president must have watched James Bond “We won't allow the Centre to do politics “It is very clear the PM does not have the
films, in which Bond says, if it happens for the first time it with an emotive issue like crop insurance by guts to come to Parliament and confront
is happenstance, if it happens twice it is coincidence, if it is tagging their name with the project when it questions. The defence minister hides behind
thrice then it is conspiracy. Rahul Gandhi is doing the same” is sharing only 20% of premium amount” AIADMK members, the PM hides in his room”
ARUN JAITLEY MAMATA BANERJEE RAHUL GANDHI
Finance minister West Bengal chief minister Congress president
> .

MSME loan rejig plan to Cheaper credit

IN BRIEF
ICICI Bank PLC to exit financing
for merchant
help borrowers, PSBs
in diamond hub Antwerp

exporters
ICICIBankhasdecidedtocloseitsbranchinAntwerp,Belgium.
Antwerpisahubfordiamondbusinessandclosingabranch
operatedbyICICIBankUKPLCmeansthebankisexitingfinancing
tothesector.Initslettertoclients,thebanksaidthatthebranch
willbeclosedfromMarch29,2019.“Followingastrategicreviewof
SUBRATA PANDA &
NAMRATA ACHARYA
HOW THEY STACK UP
itsbusinessoperationsinBelgium,ICICIBankUKPLChasdecidedto Mumbai/Kolkata, 2 January NPA Profile — lender typewise (in%) SUBHAYAN CHAKRABORTY
closeitsbranchinAntwerp,Belgium.Theclosurewillbeeffected PSBs PVBs NBFCs New Delhi, 2 January National Health
E

15.2
fromMarch29,2019,”anICICIbankspokespersonsaid.Diamond ven as the Reserve Bank

14.4
Agency renamed

14.5
orgemandjewellerysectorisconsideredhighriskbusiness of India (RBI) allowed Merchant exporters can now

14.3
globallyandseveralleadingbankshaveexitedfinancingtothe banks and non-banking avail of pre- and post-shipment
sector.Theprocesshasstartedadecadeagoafter2008financial financial companies (NBFCs) to credit at lower rates through The Union Cabinet has
marketcrisisthatledthelargestdiamondmanufacturertocut undertake a one-time restruc- the Interest Equalisation changed the National Health
productionbyalmosthalf. BS REPORTER< turing exercise of micro, small Scheme (IES) following the Agency to National Health
and medium enterprise long-standing demand by the Authority. This change,

5.0
5.0

5.0
5.1

4.0
4.1

3.9
Textile firms face Economy on track

higher trade barriers
in EU, US: Govt
Indiantextilecompaniesface
highertradebarriers,
comparedtoother
competingcountriessuchas
Bangladesh,Vietnamand
Pakistan,intheUSand
EuropeanUnion,Parliament
wasinformedon
Wednesday.Theaverage
tariffontextileproducts
facedbyIndiaintheEUand
USis5.9percentand6.2per
cent,respectively.In
comparison,Pakistanfaces
zeropercentand5.3percent
averagetariffintheEUand
theUS,respectively;for
Bangladeshitiszeropercent
and3.9percent;whereas
Vietnamattracted6.1percent
and5.5percenttariff. PTI<
CBIC defers removal
of goods from
warehouses again
Thecustomsdepartmenthas
deferredtheimplementation
ofmandatoryelectronic
sealingfordepositand
removalofgoodsfrom
customswarehousesforthe
fourthtime.Therequirement
ofe-sealingofgoodswasto
comeintoeffectfromJanuary
1,2019.Thecustoms
departmenthad,inJunelast
year,decidedthatradio-
frequencyidentification
sealingshallberequiredon
transportofgoodsfordeposit
inawarehouseaswellas
removaltherefrom. PTI<
CCI rejects complaint
against Indiabulls
Housing Finance
Fair trade regulator CCI on
Wednesday dismissed a
complaint alleging unfair and
discriminatory trade practices
by Indiabulls Housing Finance
regarding loan agreement.
The regulator said ,prima
facie, the case did not
contravene the provisions of
Sections 3 and 4 of the
Competition Act. Section 3 and
4 pertain to anti-competitive
agreement and abuse of
dominant market position,
respectively. PTI
to log high growth
rate, says FinMin
Theeconomyisprojectedtobe
thefastest-growingmajor
economyinthecurrentand
upcomingfiscalyear2019-20,
thefinanceministrysaidon
Wednesdaywhileemphasising
thattheCentrehadtaken
severalstepstoboostinvestors’
confidence.Accordingtoa
recentWorldBankreport,India
hasimproveditsrankinginthe
EaseofDoingBusinessto77thin
2018.Theaveragegrowthof
Indianeconomybetween
2014-15and2017-18was7.3per
cent,fastestamongthemajor
economiesintheworld,the
ministrysaidinYearEnd
Review2018. Theministrysaid
thereweremeasurestoboost
manufacturing,compre-
hensivereformsintheforeign
directinvestmentpolicy,
specialpackageforthetextile
industry,amongothers. PTI<
Parl panel asks for
drought-tolerant
sugarcane varieties
Aparliamentarycommitteehas
recommendedtheDepartment
ofBiotechnologytostartits
researchanddevelopment
activitiesfordeveloping
drought-resistantvarietiesof
sugarcane.Thecommittee's
reportondemandsforgrantsof
theDepartmentofBiotech-
nologysaiditfeltthatdrought-
resistantvarietiesofsugarcane,
ifmadeavailable,willeaseout
theproblemsfacedby
sugarcanegrowersduetolack
ofirrigationfacilitiesand
dependenceonthevagariesof
monsoon. PTI<
India first principle
guiding foreign
policy, says Modi
PMNarendraModisaidon
Wednesday'IndiaFirst'wasthe
simplemantraguidinghis
government'sforeignpolicyas
itwentaboutsettingtheglobal
narrativeonissues.Hesaidthe
cross-LoCsurgicalstrikes
targetingterrorlaunchpadsin
Pakistanshowcasedthe
country'sabilitytodealwith
terrorism"inalanguagethe
terroristsunderstand". PTI<
(MSME) loans up to ~25 crore,
which are stressed but not yet
classified as non-performing
assets, the poor quality of
MSME loans in public sector
banks, especially those under
PCA, has turned out to be a
cause for concern.
The central bank, in its
Financial Stability Report, has
flagged concerns regarding the
deterioration in the asset quali-
ty of the loans given out to the
MSME sector. The MSME expo-
sure of public sector banks
(PSBs), which has turned into
NPAs, was 15.2 per cent as on
June 2018. For private banks, it
was 3.9 per cent and NBFCs’ bad
assets to this sector was 5 per
cent. In June 2017, NPAs of PSBs
was 14.5 per cent, while that of
privatebankswas4percentand
NBFCs was 5 per cent.
With the high NPAs, the
MSME sector has been facing
difficulty in raising funds. Exp-
erts are of the opinion that this
move of allowing one-time loan
restructuring will improve their
liquidity position and also give
them more time to repay debts.
“From the borrower’s per-
spective, the measure is posi-
tive as loan restructuring, which
can include elongation of repay-
mentschedule,additionalfund-
ing for capital expenditure or
working capital and moratori-
um on interest servicing; as it
will provide them additional
fundingandrespiteintheircash
RISE IN INOPERATIVE JAN-DHAN ACCOUNTS
Prime Minister Narendra Modi
launched the Pradhan
MantriJan-DhanYojana in
August 2014 to provide
banking facilityto all
households.Till December 12
lastyear, 335 million
accountswere opened
under the scheme,with
an average deposit of ~2548
in each bankaccount.
Around 60% of the total accounts
are in therural areas. However, the
inoperative accounts —where
there has been no transaction in
the previous twoyears — have also
grown from 19.9% to 23.3% of total
accounts. Business Standard takes
a lookatsome of the numbers:
3.9
Mar '17 Jun '17 Mar '18
Source: TransUnion Cibil
MSMEs seek relief for non-GST firms
The MSME sector on Wednesday demanded the RBI's loan
restructuring scheme be also extended to the companies not
yet registered under the GST, and called for restoration of
priority sector lending tag for such enterprises. The RBI on
Tuesday allowed a one-time restructuring of the existing debt
of up to ~25 crore for the companies that have defaulted on
payments but their loans have continued to be classified as
standard assets.
outflows in the near term,”
Karthik Srinivasan, group head,
Icra said.
“With loan restructuring
window available till March 31,
2020, we expect that MSME
entities that could avail the
restructuring option can
increase, as even the borrowers
that were marginally overdue
on their repayments will avail
of such benefit, as it will ease
their cash flows by way of
reduced debt repayments,” he
further added.
The MSME sector, account-
ing for 25 per cent of the com-
mercial lending in India, amou-
nting to ~23 trillion, reported an
18 per cent growth in Q1 FY19.
The exposure of loans up to ~25
crore, accounted for 13 per cent
Jun '18
PTI
ofthetotalloansandtheseloans
recorded 16 per cent growth.
State-owned banks have lost
out on their market share in
MSME lending to private banks
and NBFCs. While PSBs
accounted for 59.4 per cent of
the market in June 2016, it fell
to 50.7 per cent in June 2018.
The market shares of the pri-
vate banks have grown to 29.9
per cent and 11.3 per cent,
respectively, in June 2018.
The new measures are
expected to have an impact on
PSBs. “The impact of this
guideline would be mostly on
public banks, especially those
that are under prompt correc-
tive action (PCA),” said Kotak
Institutional Equities
Research in a report. The bro-
| Total beneficiaries
| Operative accounts (mn)
307
246
Dec 20, 2017
19.9%
AVERAGE DEPOSIT
~2,316
Dec 20,
2017
Compiled by: Somesh Jha Source: Lok Sabha, Rajya Sabha
kerage said there will not be
material impact on private
banks or the NBFCs, as the
trends do not suggest any sign
of deterioration.
PSBs, which are under the
RBI’s PCA, have seen their
exposure to loans less than ~5
crore increase by 166 per cent
from ~22,680 crore to ~60,280
crore between FY17 and FY18.
However, Ashok Kumar
Pradhan, MD & CEO of United
Bank of India, sounded a word
of caution, “Banks should be
prudent with the restructuring
for MSME, and it should not be
like what happened in case of
restructuring of corporate
accounts. Banks need to do
proper due diligence and exam-
ine cash flows before restruc-
turing the MSME accounts.”
A day after the restructur-
ing of MSME loans was
announced by the central bank,
the RBI governor said that he
will meet representatives of
MSME and NBFCs next week.
The RBI has also set up a com-
mittee to identify the causes
and propose long term solu-
tions, for the economic and
financial sustainability of the
MSME sector.
335
257
Dec 12, 2018
23.3%
Inoperative a/c
~2,548
Dec 20,
2017
trading community.
The proposal will entail
benefits of around ~600 crore
to exporters on interest equal-
isation, for the remaining peri-
od of the scheme, set to end in
April 2020. The IES allows
small and medium exporters
in labour-intensive sectors to
avail of loans from banks at a
lower rate of 3 per cent.
Originally announced as a
measure to boost exports for
five years, the IES on pre- and
post-shipment rupee export
credit was revived in 2015 at a
rate of 3 per cent for 416 spe-
cific goods categories (four-dig-
it tariff).
The sectors covered are
mostly labour-intensive and
include agriculture or food
items, auto components,
handicraft, electrical engi-
neering items, and telecom
equipment. The scheme is,
however, not available for mer-
chant exporters. The last
Budget had allocated ~2,500
crore for the IES.
“The support to merchant
exporters is most timely as
interest rates are moving
northward in the country and
the 3 per cent subsidy will
reduce their cost of operation
significantly. Therefore, the
benefit will push manufactur-
ing in micro, small and medi-
um enterprises (MSMEs), cre-
ating job opportunities as well,”
said Ganesh Kumar Gupta,
president, Federation of Indian
Export Organisations.
Merchant exporters
account for over 35 per cent of
the country’s exports.
Operating on low margins of
2-4 per cent, many of them
have stopped entering into
new contracts after the demon-
etisation exercise of the gov-
ernment and continue to face
crippling liquidity issues,
industry insiders said.
Inclusion of these
exporters in the scheme may
make them competitive,
encouraging them to export
more products manufac-
tured by MSMEs, adding to
the country’s exports.
Additional exports by them
will increase production by
MSMEs, giving a fillip to
employment generation.
Exporters have been per-
sistently demanding inclu-
sion of the merchant
exporters in the ongoing
senior ministry officials say,
will help the team manage
Ayushman Bharat, take
useful decisions on the
scheme fast and implement
the same hassle-free. A
senior health ministry
official explained previously
agencies such as Niti Aayog,
and the health ministry
itself, were involved in
decision making. Packaging
rates and rules to empanel
hospitals are some of the
decisions to be taken by the
health panel. BS REPORTER
Umbrella
family welfare
scheme to stay
The Cabinet committee on
Economic Affairs has given
its approval for
continuation of five
schemes under the
‘Umbrella Scheme for
Family Welfare and Other
Health Interventions’
during the Fourteenth
Finance Commission period
2017-18 to 2019-20, an
official statement said. An
overall outlay of ~2381.84
crore for the scheme will be
spent during the Fourteenth
Finance Commission period
and would be funded 100
per cent by the Central
Government Budgetary
support. Components of
social marketing of
contraceptives, free supply
of contraceptives are
specifically targeted
towards low income group
people. PTI
scheme. Merchant exporters
play an important role in find-
ing overseas markets, getting
export orders, communicat-
ing to MSME manufacturers
the current preferences,
trends and demand for prod-
ucts in international export
markets.
Merchant exporters also
play a pivotal role in exports of
MSME manufacturers as they
export a significant quantity of
products through merchant
exporters. The high cost of
credit equally impacts their
competitiveness as they factor
in the high interest costs in
their export costing.

Wading through water, sand and many hurdles to meet power dreams
Bihar had, in October, declared full electrification. BusinessStandard returns to some villages it visited in 2015 to assess the change in a two-part series
JYOTI MUKUL makeatemporarydrivewaytotake
Supaul (Bihar), 2 January peoplefromhisvillagedirectlytothe
marketwithouthavingtotaketheboat.
About75kmdownstreamfromtheBirpur “Theboatmancharges~5apersonfor
barrageontheIndia-Nepalborder,there everyride,"hesays.
are84householdsinthemiddleofthe Thesameboatsandtractorswereused
Kosi.Ittakesaboutahalfanhour’sBolero totransportmenandmaterial,including
ridefromSupaultowntoreachtheriver solarpanels,pillarsandwiringsto
bank,fromwherethejourneybeginsona “energise”peoplelivingintheriver.“In
ricketyboat. theseareas,about40percentofthework
Theriverlevelisnotveryhighin isdoneifthematerialforelectrificationis
December,butstillaboatisneededto successfullytransported,”saysaBihar
transporthumans,animals,motorbikes governmentofficialfromNorthBihar
andeventractors.Waitingatthe PowerDistributionCompany,oneofthe
embankmentacrossoneofthespursof twodistributioncompaniesinthe
theriveraretwobikesthatrunonthe state.
sandbedtoreachKhokhananaha, Biharcompleted
oneofthemanysuchvillagesinthe electrificationofallhouseholdsin
riveritself. October2018underitsownHar
“Atractoriscarriedontwo GharBijlischeme,whichthestate
boatswithonehalfofitrestingon BIHAR claimstheCentreadoptedas
oneboatandtheotheronanother ELECTRIFICATION Saubhagya.Thisexercisemeant
boat,”says22-year-oldJitendra, PART-I reachingoutto2.9millionun-
whilegivingaridealongthe electrifiedhouseholds,wherever
newlysowedmasoor(redlentil)and theyresided,beitinthemiddleofariver
mustardcrops.Sometimes,ifthewater orajungle.Accordingtothestate'spower
levelislowandtractorsarepowerful department,thistaskwascompletedin
enough,theywadethroughthewaterand 159workingdays,whichtranslatestoan
sand,saving~500thattheboatmanwill averageof18,265connectionsaday.
otherwisechargetheowners. EachhouseholdinKhokhananahais
JitendrasaysheboughtanACE mandatedtogetatleast6-8hoursof
tractorinFebruary2018forabout powersupplyfroma15Kwsolarpower
~700,000andnowpaysamonthly system,putupbyLarsen&Toubro.Under
instalmentof~15,000forit.Heusesthe contractwiththeBihargovernment
tractorforfarmingandgivesitonrentto costing~300crore,thecompanyhasput
others.Currently,alongwithothervillage up365suchsolarmini-gridplantsand
folks,heistryingtogetsomemore 12,422standalonesystemsin233villages
tractorstocollectsandfromtheriverand covering41,498householdsacrossthe
The solar power plant at Khokhananaha is built on a stilt slightly above
the average flood level, ensuring minimum damage when the river is in
spate in the July-September period. Houses in Saran, Supaul and Araria
districts have electricity for around 16-18 hours a day
state. L&Twillmaintainandoperatethe
systemsforfiveyearsafterthe
installation.Consumerspayamonthly
chargeof~30iftheyarebelowthepoverty
lineand~60ifabovetheline.Wherethere
areminigrids,threeLEDbulbsof9watt
each,onefan,amobilechargingpoint
andtwosocketpoints,totalling117watts,
whichcanberun.
Forastandalonesystem,whereeach
householdhasasmallsolarpanel
installedforpowersupply,thetotalload
canbe93watts. Thesedecentralised
distributedgenerationsystemsareputup
Solar power plant on the banks of the
Kosi river at Khokhananaha in Bihar
sincegettinggridtocertainareasis
difficultandunviable.InSupaul,for
instance,thereareareas,whichhavegrid
powerforlongandevenintheouterside
ofriverembankments,thereispower
supplyfromthegovernmentgridsince
September2017.Butvillages,suchas
Khokhananaha,areconnectedtoself-
generatingminigrids.Thisisbecausethe
Kosicausesfloodsanditschanging
coursemakesthingstougher.
Minigridsystemsrequireaminimum
of15householdsandaredesignedina
waythattheybeconnectedtogridsinthe
future.Thesolarpowerplantat
Khokhananahaisbuiltatastiltslightly
abovetheaveragefloodlevel,ensuring
minimumdamagewhentheriverisinfull
flowduringJuly-September.
“Itisnottheflood,whichoverthe
yearsweknowhowtodealwith,butland
denudationthatisthebaneofthisriver,”
saystheboatmanatKhokhananaha,ashe
getshelpfromtwochildrentoempty
waterthatseepedintohisboat.
ThoughvillagersacrossSaran,Supaul
andArariadistrictssaytheelectrification
drivebackedbyanimprovedpower
supplyhasensuredelectricityforaround
16-18hoursaday,itsqualityremains
unpredictable.Besides,powerfor
agriculturepurposesisnon-existent.
FarmerslikeShailendraKumarof
Gopalganjpay~100-120foranhourof
watersupplytoprivateoperatorswhorun
borepumpsondiesel.“Government
powerhasimprovedbutinyearslikethis
whenthereisadrought,atleastfourto
fivehoursofwatersupplyisneededfor
ricecropbutwecannotaffordtopay
pumpoperatorssincewedonotgetmuch
returnfromsaleofthecrop,”saysKumar.
Government-runborepumpoperatorsdo
notsupplywateronsomepretextorthe
other.
According to Pratyaya Amrit, Bihar’s
principal secretary, power, putting up
1,312 electricity supply feeders dedicated
to meet the agriculture load is the next
big task. “We want to ensure at least 6-8
hours uninterrupted power supply for
agriculture by December 2019. This will
help deal with the scenario of drought,”
he says.
Biharsawearlyelectrificationand
muchofitspowerinfrastructurewasput
upthroughthe70s,whichnowneeds
replacement.“Alongwithagriculture
feeders,reconductoringthatwillinvolve
strengtheningoflowtension(LT)and
hightension(HT)powertransmission
linesisapriority,”saysAmrit.
Thestateissimultaneouslybuying
andputtingup1millionmeterstocomply
withaBiharElectricityRegulatory
Commissionorderthatrequiresmetering
ofallpowerconnections.
Alongwiththeelectrificationdrive,
comesthetaskofreducinglosses.About
95percentofBihar’s3,100Mwpower
demandismetfromsourcesoutsidethe
state.DatafromCentralElectricityAuth-
ority,however,showsthatinApril-Nove-
mber2018period,thestatesawanenergy
demandof21,247millionunits(kw/hour)
mostofwhichwasmetleavingadeficitof
1percentagainstthecountryaverageof
0.6percent.Thestate'speakpower
demandisexpectedtorisefrom1,800Mw
in2014toabout6,000Mwnextyear.
UndertheCentre'sUDAYprogramme
fordebtrestructuringofstate-owned
distributioncompanies,however,Biharis
requiredtocutlossesto22percentby
March2019butrapidelectrificationonly
mountsexpenses."Wewillbeableto
bringdownlossesto25percentwhich
willnotbemuchawayfromthetarget.Itis
noteasybutweareworkinghardon
billing,"hesays.
 .
MUMBAI | THURSDAY, 3 JANUARY 2019 5
<

INVITATION FOR RESOLUTION PLANS AIMCO PESTICIDES LIMITED

CIN: L24210MH1987PLC044362
M/s TURBOMACHINERY ENGINEERING INDUSTRIES Registered Office: B-1/1, MIDC Industrial Area, LoteParshuram, Village: Awashi, Taluka: Khed,
District: Ratnagiri, Maharashtra 415 707
LTD. engaged in manufacture, service Turbines, Tel No: 91-22-67604000 Fax No:91-22 67604060/4070
E-mail:aimco@aimcopesticides.com Website:www.aimcopesticides.com
Generators, etc., went into CIRP process under IBC. From The company has received a request from the below mentioned shareholder(s) for issue of
G inviting EOI was released in Financial Express Duplicate Share Certificate in lieu of original share certificate(s) of Rs.10/- lost/misplaced.The
company shall proceed to issue Duplicate Share Certificate in their favour if no objection isreceived
(Hyderabad) on 24.12.2018. The plant is located at 141/3, within 15days from the date of this notice.
S.V.Industrial Estate, IDA Bollaram, Hyderabad-502 325. Name of the Shareholders Folio.No Cert No Dist No No of
Shares
FOR SUBMISSION OF EOI Raja (9849082236), MAVJI VISARIA
KAMAL VISARIA 0032759 93583-93586 6644516-6644590 75
Resolution Professional, 2467001-2467100
www.turboindustries.com 6971,61267, 6847898-6847997
SONABAI SANGAPPA BIRJADAR 0006056 96432-96438 6847998-6848084 287
For Aimco Pesticides Limited
sd/-
Place : Mumbai Ninad Sahasrabuddhe
Date : January 1, 2019 Company Secretary

SHRIRAM TRANSPORT SHRIRAM TRANSPORT

FINANCE COMPANY LIMITED
PUBLIC NOTICE
This is to inform our customers and
public at large that our Hassan
Branch, located at 2nd Floor Above
Karur Vysya Bank, Near Southern
Star Hotel, B. M. Road, Hassan,
Karnataka - 573201, will shift to 2nd
Floor, Above MRF Showroom,
Opposite Jewel Rock Hotel, B. M.
Road, Hassan, Karnataka - 573201.
The Customers are requested to
contact the new branch premises for
their needs.
REGIONAL BUSINESS HEAD
FINANCE COMPANY LIMITED
PUBLIC NOTICE
This is to inform our customers and
public at large that our Nelamangala
Branch located at 309, Anjeneya Trust
Layout, Nelmangala Bye Pass,
Tumkur Road, Nelmangala, Bangalore
Rural, Karnataka - 562123, will shift to
No. 658/C, First Floor, Ashish Arcade,
Vinayaka Layout, Binnamangala,
Nelamangala Taluk, Bangalore Rural,
Karnataka - 562123.
The Customers are requested to
contact the new branch premises for
their needs.
REGIONAL BUSINESS HEAD

SHRIRAM TRANSPORT SHRIRAM TRANSPORT

FINANCE COMPANY LIMITED
PUBLIC NOTICE
This is to inform our customers and
public at large that our Calicut
Branch, located at Floor II, Sri
Padam Building, Cherooty Road,
Calicut, Kerala - 673032, will shift to
2nd Floor, 6/1002-H, City Mall,
Opposite YMCA, Kannur Road,
Calicut, Kerala - 673001.
The Customers are requested to
contact the new branch premises for
their needs.
REGIONAL BUSINESS HEAD
FINANCE COMPANY LIMITED
PUBLIC NOTICE
This is to inform our customers and
public at large that our Jagadamba
Branch located at Flat No. 2, Sector
3, Opposite Girijan Bhavan, MVP
Double Road, Visakhapatnam,
Andhra Pradesh - 530017, will shift
to Besides Pragyna School,
Ushodaya Junction, MVP Colony,
Visakhapatnam, Andhra Pradesh -
530017.
The Customers are requested to
contact the new branch premises for
their needs.
REGIONAL BUSINESS HEAD

!"# %&'(!# %&)#*#+!, -./+./!0#.)

SHRIRAM TRANSPORT
-#01 2)3#)44/#)3 54+!/0'4)0 FINANCE COMPANY LIMITED
64784)94/ .0#*4 .: %%-;-:2:;<=>;>?@A PUBLIC NOTICE
This is to inform our customers and
!'4 .B C./D :- !"#$%$&' ) *$+$&' ,-.$&/0,, 1-00/ 2.$/$&' ./"&' ,$%0, public at large that our Gorakhpur
"* 3"/%$&' "&% .- 104-"!567 ) 897: ;.,<$ $& ;.,<$ =.!%> Branch located at II nd Floor, Baldev
2E0#'!049 -.E0 6E: F7 ?@:A6:B96C5 Plaza, Gole Ghar, Gorakhpur, Uttar
DE!-<0! %0-.$/, .&% $&*"!F.-$"& !0GE$!0% $& !0,H04- "* .I"#0 205 Pradesh - 273001, will shift to 2nd
J0&%0! $, HEI/$,<0% "& I0/"K F0&-$"&0% K0I,$-0 *!"F 90: Floor, Khasra No 253/1/1, Radhey
Complex, Indira Nagar Chauraha,
?G:?@:>?@HIII:)''*:3.":#) J III:)''*:'!K!/!EK0/!:404)94/E:#) Daudpur, Gorakhpur, Uttar Pradesh
,$'&C5
- 273001.
-#01 2)3#)44/
The Customers are requested to
%%-;6L M6 N9" ).:;@O?G;>?@H !"# %&'(!# %&)#*#+!, -./+./!0#.) contact the new branch premises for
their needs.
REGIONAL BUSINESS HEAD

SHRIRAM TRANSPORT
FINANCE COMPANY LIMITED
PUBLIC NOTICE
This is to inform our customers and
public at large that our Vijaywada
II Branch located at D.No. 40-1-
100/1 2nd Floor, Khans Plaza,
Nara Chandrababu Naidu Colony,
Near Benz Circle, Vijayawada,
Andhra Pradesh - 520010, will shift
to D. No. 56-4-25, 4th Floor,
Thyagarajan Complex, High
School Road, Patamata,
Vijayawada, Andhra Pradesh -
520010.
The Customers are requested to
contact the new branch premises
for their needs.
REGIONAL BUSINESS HEAD

WITH YOU, RIGHT THROUGH

6 PRIVATE EQUITY
>
A SNAPSHOT OF PE ACTIVITY & DEALS
Deal activity
„ Deal volume „ Deal value ($mn)
28,717
1,357
1,105
2017 2018 2017
Sector-wise allocations in 2018
The software & services attracted the most
investment, accounting for 27% of the deal
value of $7.65 billion in 2018. It was followed
by real estate (10%), banks (8%) and
telecommunication services (8%)
Sectors Percentage (%)
Software & Services
Real estate
Banks
Telecommunication services
Diversified financials
Utilities
Materials
Retailing
Technology hardware
Others
Others include commercial & professional services, transportation,
pharmaceuticals, biotechnology & life sciences, food, beverage &
tobacco, automobiles & components,food & staples retailing,
insurance, health care, equipment & services and others
Top five PE deals this year
The top five deals in 2018 accounted for 21.65% of the deal value. In the largest deal, Premji
Foundation, KKR, GIC, and others invested $1.74 billion in HDFC for 3.87% stake. This was
followed by $1.25 billion bet of Warburg, Temasek & others in Airtel Africa and $1.2 billion
investment of ADIC and TPG Capital in UPL Corporation
Investor
GIC., Azim Premji Foundation 1
Warburg Pincus LLC, Temasek Holdings 2
Abu Dhabi Investment Authority, TPG Capital Inc. 3 UPL Corporation
DST Global, Naspers Ventures 4 Bundl Technologies
Lightspeed Venture Partners IX LP 5
1 Azim Premji Foundation,PI Oppor Fund I, KKR India Advisors, Carmignac Gestion S.A., OMERS Administration Corpo. 2 Temasek, SingTel
Innov8 Fund, SoftBank Vision Fund LP 3 TPG Capital 4 Meituan-Dianping, Coatue Mgmt LLC, Tencent Holdings, Wellington Mgmt LLP,
Hillhouse Capital Mgmt 5 Sequoia Cap India IV Greenoaks Capital Partners LLC, SoftBank Vision Fund LP, Lightspeed India Partners I LLC
Liquidity events/exits this year
2018 saw 209 exits. In the largest exit this year, Accel, Naspers, SoftBank and others sold their
stake in Flipkart to Walmart for approximately $7.3 billion*. Apax sold its entire stake in
GlobalLogic for $960 million, while AT Capital sold Orange Renewable Holdings for $850 million
Exit type Deal volume
M&A 98
Open market 49
Secondary sale 42
Initial Public Offering 10
Buyback 10
*This value is disclosed for few investors, the value will go up with more disclosures
> FROM PAGE 1
Dena,Vijaya
merger...
BoB’s stock is expected to react posi-
tively on Thursday’s, but Dena Bank
could witness sharp pressure on its
share price. Vijaya Bank stock may
see some marginal pressure. BoB
stocks closed ~119.40 a piece, down
3.16 per cent; Vijaya closed up 0.29
per cent, at ~51.05 a piece; and Dena
Bank closed down 0.28 per cent, at
~17.95 a piece on the BSE.
The combined employee count
was
Business Standard
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No Air Surcharge
Month-wise PE activity
2,400
2,917
2,353
1,538
28,603
Jun ‘18 Jul ‘18 Aug ‘18 Sep ‘18
2018
Deal
volume 101 109 82 76
Key deals last week
There were 7 deals worth $312.86 million
ended January 02, 2018.
Investor & target
Warburg Pincus India
Hamstede Living
27
10 Intl Finance Corp.,
Zinka Logistics Solutions
8 funds have equity money to invest. The
8 space vacated by NBFCs is being filled by
Cerestra Edu-Infra Fund
6 100
Kangaroo Kids Education
6 at realty consultants Knight Frank.
5 Gray Matters Capital Inc.
4 Ignis Careers
4
Gray Matters Capital Inc.
21
Consultancy
1 Sands Capital Management LLC 2 Senbonzakura
Investee Stake (%)
HDFC 3.9
Airtel Africa 28.4
22
NA
Oravel Stays NA
Initial Public Offering 6.27
Deal value ($mn)
9,419.42 Secondary Sale
2,001.36 11.48
1,616.64
883.36
Open Market
166.18
14.21
85,675, and total branches were near-
ly 9,500, as of June.
None of the employees would be
retrenched, assured the government.
But, it is likely that some of the
branches would be closed, consider-
ing the multiple presence in key loca-
tions. The government hopes that the
economies of scale and wider scope
would position the merged entity for
“improved profitability, wider prod-
uct offerings, and adoption of tech-
nology and best practices across
amalgamating entities for cost effi-
ciency and improved risk manage-
ment, and financial inclusion
through wider reach.”
“The amalgamation will be the
first-ever three-way consolidation of
banks in India,” the government said.
It will “help create a strong glob-
ally competitive bank with
economies of scale and enable reali-
sation of wide-ranging synergies,”
such as networks, low-cost deposits,
customer base, market reach, opera-
tional efficiency while offering wider
bouquet of products and services,
and improved access for customers.
The undertakings of Vijaya and
Dena Bank “as a going concern shall
be transferred to and shall vest in the
transferee bank, including, inter alia,
all business, assets, rights, titles,
claims, licenses, approvals and other
privileges and all property, all
bor-rowings, liabilities and obliga-
tions,” the government statement
said. Every permanent and regular
officer or employee of Dena and
Vijaya will become an officer or
employee of BoB and their pay and
allowances will be at par with other
Bank of Baroda officers and employ-
ees, the statement said. “There will be
no retrenchment of any employee
because of this merger,” said Union
Law Minister Ravi Shankar Prasad.
The three banks have strengths
of their own, Dena Bank has relative-
ly higher access to low cost current
and savings accounts (CASA), Vijaya
Bank is profitable and is well capital-
ized and BoB has extensive and glob-
al network, as well as good product
offerings. The amalgamated banks
will have access to a wider talent pool,
and a large database that may be
leveraged through analytics for com-
petitive advantage in a rapidly digi-
talising banking context.
Benefits would also flow as a result
of wider reach and distribution net-
work and reduction in distribution
costs for the products and services
through subsidiaries.
Munjal, Bajaj
Even as he is optimistic of better sales
in the ongoing quarter, a GST rate cut
MUMBAI | THURSDAY, 3 JANUARY 2019 1
2,807
„ Deal value ($mn)
2,280
Filling the realty funding gap
1,657
Motilal Oswal, HDFC Capital, Xander and other PE funds focused on this segment find
opportunity in NBFC retreat
Oct ‘18 Nov ‘18 Dec ‘18
74 67 63 RAGHAVENDRA KAMATH
Mumbai, 2 January
FLUSH WITH FUNDS
„ Motilal Oswal Real Estate launched a
new fund six months ago
R
eal estate-focused private equity
ILLUSTRATION: BINAY SINHA
funds HDFC Capital, Xander „ Motilal Oswal raised ~575 crore in September
Group, Kotak Realty Fund and
to invest in affordable housing projects
Motilal Oswal Real Estate are actively
scouting for housing deals. „ HDFC Capital has around $600 million
Stake (%) Value ($ mn) Non-banking finance companies of investible funds
(NBFCs), which had replaced banks in
68 „ Kotak Realty Fund is managing funds of over
291.5 lending to realty developers, have since
$300 million through managing accounts
turned cautious in doing so. This was
of ADIA, QIA in real estate
after their facing a liquidity squeeze in
the aftermath of the IL&FS defaults.
NA 12.4 “These (HDFC, Motilal, Kotak) PE
past, we have been investing ~600-800 not elicit a response. risk/reward matrix,” said Vikas
crore every year and with adequate dry Kotak Realty Fund is also actively Chimakurthy, chief executive at Kotak
8.6 PE funds which have money,” said powder, we shall continue to,” said looking at deals in the residential seg- Realty Fund. The fund manager's
Rajeev Bairathi, head of capital markets Sharad Mittal, chief executive at MORE. ment, say sources. It is also currently focus, he said, remains the top six to
They announced deals worth ~300 crore managing the accounts of Abu Dhabi seven metropolises across asset class-
For instance, Motilal Oswal Real last month. Investment Authority and Qatar es in real estate and across the entire
NA 0.2
Estate (MORE) launched a new fund six HDFC Capital, the real estate fund Investment Authority in real estate. capital stack from equity to debt.
months earlier. It raised ~575 crore in management arm of HDFC, has around “Over the past couple of years, cap- The share of real estate in Piramal
September to invest in affordable hous- $600 million (~4,200 crore) of investable ital providers were taking dispropor- Enterprises’ loan book had come down
NA 0.1 ing projects and commercial property. funds and is looking to invest aggres- tionate risk and believed somebody from 85 per cent in the September
It has invested ~50 crore to ~150 crore in sively, said a source in the know. else will step in to refinance them. quarter of 2016-17 to 74 per cent in the
the top six cities. “In the current market, we are get- This seems to have stopped, for the same quarter of 2018-19. The company
“In the present scenario, our deal flow ting good deals, as many have time being. Capital providers are expects it to be 50 per cent in two years.
has certainly increased, though based stopped lending,” said sources. An e- becoming more prudent. Hence, there
on our investment philosophy. In the mail to an HDFC spokesperson did are opportunities, which meet our More on business-standard.com
Deal value ($mn)
Fall in early-stage funding this year
T E NARASIMHAN Investors have become choosy, ly regime and not be distracted
1,742.9
Chennai, 2 January based on the learning on invest-
ments from 2014 onwards, he
INVESTMENTS IN START-UPS BY ROUND by angel tax fears. After all, the
phenomenal success of the IT
1,250
While private equity and ven- added. His venture used to select Year Seed Series Series Series Series Series (information technology) se-
1,200 A B C D E+
ture capital (PE/VC) investment 10 companies from a set of 40-50 rvices industry was facilitated
1,000 into start-ups rose in 2018, early applicants for funding. Now, if it 2014 91 145 56 28 11 10 through an enabling tax regime."
1000 stage funding went down. gets 80-100 applications, it Over-capitalisation of some
Seed funding fell 15 per cent invests in only two or three. 2015 208 257 93 41 12 11 start-ups make it harder for oth-
to $148 million (~10,000 crore) in VCs, it appear, would tend to 2016 198 186 102 45 20 11 ers to get capital, said another
2018, as against $174 million the stay away from sectors which investor. The year ended with a
previous year. Venture have not been growing or not
2017 174 154 101 30 21 15 decline in angel investment in
Intelligence data shows Series-A raising follow-on funds. The 2018 148 137 83 62 24 15 the final quarter, primarily on
funding fell 11 per cent to $137 scrutiny has become tougher. Source: Venture Intelligence the fear of income tax notices to
million and Series-B funding by Overall, the year has been such investors and the associ-
17.8 per cent to $83 million. positive for the PE/VC sector. over-funded situation in some tives need to be spelt out within ated network, along with the in-
“The year has seen investors Several unicorns (billion-dollar of these sectors, it is inevitable," a shorter time frame, so as to vestee companies. This would
Buyback looking at more technology- valuation entities) emerged in said Siddhartha Das, general maintain the current momen- also be a concern for the stage
1.18 driven companies and unique e-commerce and in financial partner at Ventureast. tum and not take the wind out of investments during 2019, say
models, rather than the previ- technology, as also the Flipkart The government has had the sails of VCs and entrepre- experts. While angel investment
% ous trends of investing in con- mega deal with Walmart, says much more of a positive role in neurs, who are bound by fund grew to $228 million, from $197
ventional firms like e-com- VC entity Ventureast. driving the entrepreneur eco- life constraints and exit hori- million in 2017, these declined
merce companies and others,” "High valuations in the start- system than at any time in the zons. The bootstrapped entre- from $73 million in the quarter
M&A 66.87
said Sanjay Enishetty, manag- up universe have been a con- past, he said. Adding: "However, preneur needs to be encouraged ended September to $33 million
Source: NewsCorp VCCEdge ing director at 50K Ventures. cern area for VCs but given the clarity on several policy initia- with a more clear and tax-friend- in the quarter ended December.
would provide the much-needed
relief to millions of two-wheeler cus-
amount. Going by the RBI's February
2018 circular, it is now treated as a “HERE ARE THE EXAM
that the price of "weaponised" ver-
sion cannot be told as it would help
Panagariya’s successor Rajiv Kumar
shared a copy of the report with all the
tomers across the country and to the 'default' and therefore all banks have QUESTIONS IN ADVANCE: India's adversaries. He reiterated that task force members on September 13,
entire value chain dependent on the to initiate steps for a 'resolution' with- Q1. WHY 36 AIRCRAFT, the bare aircraft was 9 per cent cheap- 2017, stating how the report had sig-
sector, he said. in 180 days, irrespective of whether INSTEAD OF THE 126 THE IAF er than the one negotiated by the UPA nificant changes from the draft ver-
“It is absolutely imperative to Jet makes good on its due or not. NEEDED? Q2. WHY ~1,600 and the weaponised version was 20 sion. Panagariya did not respond to
ensure growth in the auto sector to CRORE, INSTEAD OF ~560 per cent cheaper. queries sent through e-mail, despite
create and sustain inclusive eco- CRORE PER AIRCRAFT. Q3. Taking a dig at Gandhi, Jaitley repeated requests.
nomic growth,” he said. A sharp WHY AA INSTEAD OF HAL? said, "It is a tragedy that the grand Kumar did not respond to a ques-
increase in the cost of two-wheelers old party which was headed by leg- tion e-mailed to him on December
WILL HE SHOW UP? OR
following the implementation of a ends in the past is now headed by a 27, that why the final report was not
new set of regulations around safety
SEND A PROXY” gentleman who doesn't have basic made public. To a specific question,
and emission make the case for a rate
cut stronger, he added. “All these will
RAHUL GANDHI, understanding of combat aircraft."
He said Gandhi had a "natural dis-
he, however, said, "I do not recall tak-
ing any stand on publishing the
Congress president
put severe stress on the extremely like for truth" and had earlier "man- report as some of its suggestions were
cost-sensitive commuters, for whom However, bankers can collectively "EVEN A FOOL WILL NOT ufactured" his conversation with for- not favourable to me. The final report
the two-wheeler is a lifeline,” he said. take a decision that 'no resolution is mer French President, which was was submitted by my predecessor to
But Bajaj has a different take on needed' for the account, and then Jet
COMPARE PRICES OF A denied by the French government. the PMO on August 30, 2017, prior to
the matter and believes that instead gets out of the formalities. Default
SIMPLE FLYAWAY AIRCRAFT The finance minister also raised my taking over as VC. Therefore, I do
of relying on government sops, the doesn't mean Jet has become a non- WITH A WEAPONISED JET” AgustaWestland and National Herald not recall having any role in finalising
industry should sharpen focus on
products. Moreover, a price cut is
performing asset (NPA). Only if the
repayment obligation remains ARUN JAITLEY, cases and made a veiled reference to
Ottavio Quattrocchi to attack the
the report.” There were divergent
views in the task force on whether
unlikely to spur sales. “In motorcy- unpaid for 90 days, the account Finance Minister Congress leadership. the Economic Census should be dis-
cles, the sports segment -- where becomes default, the banker pointed Trinamool Congress member continued altogether as it was found
Pulsar is the leader -- is growing at 25 out. Saugata Roy asked why was it that to be inaccurate. The other view was
per cent, although products here are "Already, there are discussions In its December 14 order, the Defence Minister Nirmala that the final report should note the
50 per cent more expensive than in with Etihad Airlines for a compre- Supreme Court had given a clean chit Sitharaman was not replying on the limitations of the census, but it could
the mid commuter segment. So I hensive resolution plan. We are mon- to the Modi government’s decision- issue. Roy accused the PM of running become a “possible public embar-
don't think that reducing the GST by itoring the situation and at present we making process in selecting Rafale away from the debate. He alleged that rassment”. Ultimately, the task force
10 percentage points is necessarily don't feel there is any reason for wor- fighter jets for the Indian Air Force. the money trail from the Rafale deal asked the government to verify the
the only answer. The industry per- ry," said a senior banker. However, However, Gandhi argued the would go to Reliance Defence and Economic Census numbers with oth-
haps should focus more on products ICRA pointed out that Jet's liquidity Supreme Court order did not say that Aerospace. Roy asked the govern- er enterprise registers, rather than
than on sops,” he said. Albeit on a position was stressed, with operat- there was no corruption in the deal. ment to explain why a private com- discontinuing it.
lower base, Bajaj Auto’s domestic ing losses, high debt levels and nega- He said Parrikar was "effectively pany, incorporated 20 days before the The task force also deliberated
motorcycle sales jumped 39 per cent tive networth. The company has to blackmailing" the PM on the Rafale deal was signed, was chosen as an upon the need to give access of gov-
year-on-year to 157,252 units in make large repayments of Rs 1,700 issue. Gandhi said Jaitley in its reply offset partner instead of a 70-year- ernment data to researchers. In a
December 2018. crore by March 2019, Rs 2,444.5 crore in Parliament conceded that the old public sector company, meeting held on June 20, 2017, the
Bajaj, however, pointed out that in FY2020 and Rs 2,167.9 crore in Modi government bought Rafale jets Hindustan Aeronautics Limited PMO told the NITI Aayog that “the
should the government decide to FY2021. at an inflated price, and said a future (HAL). Meanwhile, former Union proposal of giving access to external
reduce the GST, it should be timed "In the absence of adequate cash Congress government would order a ministers Yashwant Sinha and Arun researchers to all government data
with the safety norms of April 1, 2019 accruals, the company will be probe into the deal. Shourie, along with advocate which will be housed in the proposed
or emission norms of April 1, 2020. required to refinance its repayments In the Lok Sabha, Jaitley hit back, Prashant Bhushan, approached the central server needs further thought”
“This will be an antidote to the steep falling due. While it has been under- accusing Gandhi of having a "legacy SC, seeking a review of its December and need not be given at this stage. It
costs associated with technology to taking several liquidity initiatives, of lying" and "repeating falsehood". 14 judgment. The judgment had dis- had asked the NITI Aayog to hold fur-
meet with those norms,” said Bajaj. In timely funds tie-up is a key rating Jaitley said the "conspirators" of past missed all public interest litigations ther discussions on it.
a market where inventory is already sensitivity,'' ICRA said. Jet Airways defence scams were now raising fin- (PILs) alleging irregularities in the The task force recommended a
very high, a hurriedly announced posted a net loss of Rs 1,297 crore in gers at others. He said the Supreme procurement of 36 Rafale jets from shift to a monthly household survey,
duty cut can have a detrimental the second quarter of fiscal year 2018- Court had already satisfied its "con- France. similar to the Current Population
impact on sales and lead to a 50 per 19, excluding its units. It was the air- science" on the issue and there was no Survey of the United States, in the
cent fall in demand, he added.
“Given that India has one of the
line’s third successive loss. It had a net
profit of Rs 49 crore in the same peri-
need for a JPC probe. His speech was
disrupted by continuous protests Jobs data... long run, and suggested experiment-
ing with data collection via mobile
highest taxation on two-wheelers od a year earlier. The airline has from Congress Members, some of It also highlighted how the GSTN technology. The report said that after
(including on- road taxes) when com- sought time till March to clear dues to whom were seen throwing paper itself might not be an appropriate building a face-to-face contact for the
pared to other countries, that by itself its pilots, crew and other ground staff. planes, drawing the Speaker's admo- framework as businesses might try first time, a set of core questions could
is an ample case for lowering it,” says (with inputs from Arindam nition. to stay away from it in a bid to evade be sent to people over the phone. It,
Mahantesh Sabarad, head of retail Majumder) Jaitley said the Congress felt that taxes. It said the statistics captured however, acknowledged that this
research at SBI Cap Securities. He since "its hands are already soaked in through the Employees’ Provident approach might take time to be
added that both safety and BS-VI reg-
ulations would cumulatively lead to a Rafale deal... corruption", it decided to "manufac-
ture" a lie to defame the Modi gov-
Fund Organisation, Employees’ State
Insurance Corporation, and National
adopted as India had less than 100
per cent mobile penetration and
price hike of ~3,000 a unit. A 10 per “The audio clip released by the ernment, which has a clean record. Pension Scheme databases could be many households might be unable
cent reduction in the GST will bring Congress party is a desperate attempt "Remember the JPC on Bofors ... it useful in tracking only the “formal to respond to questions on the phone
down the unit price by ~3,000. Hence, to fabricate facts after their lies were said the kickback were winding up social security nets” and could show despite access.
a cut in GST will offset the hike, he exposed by the recent Supreme Court charges ... it whitewashed corrup- the progress in formalisation of work- The task force said surveys of
said. verdict on Rafale. No such discussion tion," Jaitley said. He also claimed force, and not job creation. The gov- enterprises could serve as a comple-
ever came up during Cabinet or any that JPC was a partisan body, which ernment has been releasing monthly mentary source of information on
Jet defaults... other meeting,” Parrikar tweeted.
The Congress party’s Goa unit
cannot investigate fairly. He said
there was no point in accepting
payroll data of the EPFO, NPS and
ESIC in a bid to counter the claims of
labour markets and should be used
only to study the composition of
A top executive at a large public sec-
tor bank said Jet Airways was a ‘’stan-
demanded a search of Parrikar’s res-
idence. Parrikar was defence minister
demand for a JPC by a party which is
already embroiled in the Bofors cor-
“jobless growth”.
The final report was prepared
workforce across sectors, wages, and
productivity.
dard account’’ in the books of banks, when the PM had travelled to France ruption case. The FM said the price of after incorporating public comments
but has delayed in paying a small in April 2015 and signed the deal. "bare aircraft" had been revealed and received by the task force. More on business-standard.com
.
MUMBAI | THURSDAY, 3 JANUARY 2019
Banks fail to meet priority
sector lending targets: RBI
NIKHAT HETAVKAR
Mumbai, 2 January
T
he banking sector failed to meet
the priority-sector lending (PSL)
targets overall, revealed data
released by the Reserve Bank of India
(RBI). The banks also failed to meet tar-
gets of specific sectors such as agricul-
ture and micro, small and medium
enterprises (MSMEs).
While PSBs met their PSL target for
agriculture of 18 per cent, private banks
and foreign banks failed to meet the tar-
gets at 16.2 per cent and 16.7 per cent,
respectively.
“Bank credit to agriculture deceler-
ated during 2017-18, partly reflecting the
pervasive risk aversion and debt waivers
by various state governments, which
may have dis-incentivised lending to
the sector,” said the RBI.
The year-on-year growth in agricultur-
al lending stood at 3.8 per cent during 2017-
18, against 12.4 per cent during 2016-17.
The total number of operating kisan cred-
it cards also fell marginally during the year.
The gross non performing asset ratio
(GNPA) for the agriculture sector went up
in financial year 2018-19, possibly reflect-
ing debt waivers by several states. The
asset quality for agricultural loans wors-
ened during the first half of 2018-19. The
GNPA ratios are expected to widen with
more farm loans waivers.
The share of priority sector NPAs in of
the total declined marginally during 2017-
18 but it still constituted a fifth of the total
NPAs. Agricultural NPAs and MSME NPAs
comprise 8.6 per cent and 9.5 per cent of
the total NPAs in the banking sector,
respectively, as on March 2018. While lend-
ing to agriculture and MSMEs comprised
ECONOMY & PUBLIC AFFAIRS 7 <
Bill in LS to allow voluntary
use of Aadhaar for services
Times
Group’s net
profit slides
AASHISH ARYAN & PTI
New Delhi, 2 January
The government on Wednesday
poses to confer enhanced regu-
lator-like powers on the Unique
Identification Authority of India
(UIDAI). The amendment says
Though authorities have be-
en allowed to perform authen-
tication only when they are
compliant with the standards
again in FY18
ARNAB DUTTA
New Delhi, 2 January
PRIORITY SECTOR LENDING introduced amendments to the that the UIDAI can now give of privacy and security, it co-
BY BANKS (in%) Aadhaar Act in the Lok Sabha, directions as it may consider uld create more confusion as Bennett Coleman &
Segment Target Public Private Foreign allowing individuals to volun- necessary to any entity in the the government has failed to Company (BCCL), one the
tarily offer the biometric iden- Aadhaar ecosystem. The specify these standards either country's largest news
sector
tification card as a means of ver- Aadhaar ecosystem will now in the Bill or the draft personal media groups, saw its net
Agriculture 18.0 18.0 16.2 16.7 ification for obtaining services contain enrolling agencies, enti- data protection Bill, Waris said. profit decline for two con-
Micro like opening a bank account ties which request data from the The government has also secutive years since 2015-16.
7.5 6.4 7.9 4.2 and getting a mobile phone UIDAI for verification, or any introduced stiff penalties BCCL, known as the
enterprises
connection. other entity as specified from such as ~1 crore on entities Times Group in India, reg-
Weaker 10.0 11.5 9.5 7.1 The amendment, however, time to time. that violate the provisions of istered a 6.84 per cent dip
sections makes it clear that anyone not This move to give the UIDAI the Aadhaar Act, with an in its net profit in 2017-18.
Total 40.0 39.9 40.8 38.3 offering Aadhaar as an identifi- such authority may create con- additional fine of up to ~10 The firm's consolidated net
Source: RBI
cation card cannot be denied fusion as it gives wide ranging lakh per day in case of contin- profit had plunged by 50.54
any service. Mandatory use of powers to yet another agency. It uous non-compliance. It may per cent the previous year,
Aadhaar as a form of identity is akin to electronic profiling as not, however, deter agencies according to its fillings with
SALIENT FEATURES for any service given by the state the entities under the UIDAI which have already stored pri- the Registrar of Companies.
„ Banks fail to meet „ Agriculture loans will be allowed only if such have not been defined proper- vate citizens’ data with them, In 2017-18, Times Group’s
overall or sub- form 13 per cent of authentication is required by a ly, said Salman Waris, who experts said. operating revenue went up
target for priority total credit and 8.6 law made by Parliament. heads the TMT and IP practice by 3.34 per cent to ~9,055
sector lending of total NPAs The amendment also pro- groups at TechLegis. More on business-standard.com crore from ~8,762 crore a
year ago. However, its net
„ PSL-NPAs form „ MSME loans form 6 profit stood at ~681 crore,
one-fifth of total
banking NPAs
per cent of total credit
and 9.5 of total NPAs Nod to changes in trade union law down from ~731 crore in
2016-17.
In 2016-17, the group’s
13 per cent and six per cent respectively of As banks struggle to meet PSL targets, SOMESH JHA the Congress-backed Indian Trade Union operating revenue and net
the total bank credit outstanding at the priority sector lending certificates New Delhi, 2 January Congress (INTUC) and Trade Unions Co- profit had taken a beating.
end of March 2018. (PSLCs), which allows sale of PSL obli- Ordination Centre. The government had, in While it's operating revenue
Priority sector credit growth, howev- gation, have gained traction. According The Union Cabinet on Wednesday approved 2016, barred INTUC from attending all con- had declined marginally to
er, recovered in 2017-18, largely driven to central bank data, PSLCs trading vol- the proposed amendments to the Trade sultation meetings after three leaders within ~8,762 crore from ~8,772
by a recovery in credit to MSME, said ume increased by 270 per cent to ~1.8 tril- Unions Act 1926, aimed at giving statutory the unit claimed to be leading the union. crore, its net profit more
the central bank. lion in 2017-18, up from ~49,800 crore in backing to central and state-level trade unions. Unions are not recognised under the Trade than halved from ~1,478
The first half of 2018-19 saw public the previous year. In H1 of 2018-19, trad- The proposed Bill, likely be introduced in Unions Act, originally enacted in 1926. The crore in 2015-16.
sector banks (PSBs) and private banks ing volume more than doubled from the the ongoing winter session of Parliament, has office of the chief central labour commission- The publisher of widely
meeting the overall priority sector lend- level a year ago. provisions for recognising central trade unions er conducts a verification drive of the mem- read newspapers such as the
ing target. However, shortfalls were PSBs and private banks are major buy- by various government departments, at both bership, based on which the labour and Times of India (ToI) and the
observed in certain sectors and sub-sec- ers and sellers of PSLCs; however, if buying the central and state levels. There are provi- employment ministry gives them the status of Economic Times (ET) conse-
tors in the case of both PSBs (micro- and selling is netted, private banks and sions empowering the Centre to frame rules for central trade unions. However, there is no quently posted a net profit
enterprises) and private banks (total agri- foreign bankers emerge as major buyers recognising unions and resolving disputes statutory provision for either the recognition margin that was worse than
culture, small and marginal farmers; and PSBs, rural regional banks, and small involving them. The move will help the gov- of a trade union in industry, or the establish- its nearest competitors, for
non-corporate individual farmers; and finance banks as major sellers, said the ernment have a say in cases such as those wit- ment or recognition of a union at the central the year ending March,
weaker sections). RBI. nessed recently, where there were factions in and state level. 2018.
 
 
  
         !""###" MULUND WEST BRANCH
$ #""!%&&'## ()  *
*
+,-. 
) /-
 ,-. 
) Sai Arcade, Netaji Subhas Road, Mulund West Mumbai–400080.
01  23' 2"44$20%%4'3 Email: cbsmulund@unionbankofindia.com
  

 Web-site address: http://www.unionbankofindia.com
 

         
   !
 Appendix IV

"#$

  %&'( )*+  , -   )
  POSSESSION NOTICE

   

 
 0),6  
.
 -   [Rule-8 (1)]
7.6 8.6 & #"  
(  !   .  ! / (For Immovable Property)
00 -  9.
 :
  0 
  
 .
  Whereas,

 0),6 
 ;.
    )
  
)- %" #"4 The undersigned being the Authorized Officer of Union Bank of India,
*   #   
 -

   + #0,1 -
 
Mumbai, under the Securitization and Reconstruction of Financial Assets
,-. 
)    2    !. 3!  and Enforcement of Security Interest (Second) Act, 2002 and in exercise
-  
)    
) of the powers conferred under Section 13(12) read with rule 3 of the
Security Interest (Enforcement) Rules 2002, issued a Demand Notice
dated 29.11.2016, calling upon the Borrower 1. M/S. R.B. Mehta & Co.
(Prop. Mr. Rajendra B Mehta) 2. Ms. Asha B Mehta 3. Ms. Jagruti H

  #!#"!#" Mehta 4. Ms. Varsha R Mehta 5. Mr. Hasmukhrai.B. Mehta, to repay
the amount mentioned in the notice being Rs. 89867246.44
(Rupees Eight Crores Ninety-Eight Lakhs Sixty-Seven Thousand
Two Hundred Forty-Six and Paise Forty-Four Only) and interest
thereon within 60 days from the date of receipt of the said notice.
The Borrower/Mortgagor/Guarantor having failed to repay the
amount, notice is hereby given to the Borrower/Mortgagor/
Guarantor and the public in general that the undersigned has
taken possession of the property described herein below in
exercise of powers conferred on him/her under section 13(4) of
the said Act read with rule 8 of the said rules of this 02 nd day of
January of the year 2019 and handed over to undersigned.
The borrower’s attention is invited to the provisions of Sub-
section (8) of Section 13 of the Act, in respect of time available,
to redeem the secured assets.
The Borrower/Mortgagor/Guarantor in particular and the public
in general is hereby caution not to deal with the property and any
dealings with the property will be subject to the charge of Union
Bank of India Mulund West Branch, for an amount of Rs. 89867246.44
(Rupees Eight Crores Ninety-Eight Lakhs Sixty-Seven Thousand
Two Hundred Forty-Six and Paise Forty-Four Only).
Description of Secured Assets:
1. Bungalow No 19-C2, Shantikuj, Gate No-2, Model town, Mulund
CHS Ltd. Bal Rajeshwar Road, Mulund West. Mumbai: 400080.
2. Bungalow No 20-C4, Vaibhav, Gate No-3, Model town, Mulund
CHS Ltd. Bal Rajeshwar Road, Mulund West Mumbai 400 080.
Sd/-
Date: 02.01.2019 Authorized Officer
Place: Mumbai Union Bank of India
8 ISSUES AND INSIGHTS
>
MUMBAI | THURSDAY, 3 JANUARY 2019 1

Too early to write off payments banks all three should be growing again.
As for Aditya Birla Payments Bank
and Jio, their operations are linked to
their telecom user bases, and could
> CHINESE WHISPERS

It is only when their customer volumes are cranked up that we can see the full benefits of scale
achieved at low per-customer overheads
first three are essentially payments
banks started as adjuncts to the pro-
moters’ mainstream telecom business
where they have millions of customers,
while the last three are purer-play finan-
cial entrants.
Payments banks are essentially vehi-
cles for financial inclusion, and they are
expected to use technology to expand
reach where branches and ATMs cannot
R JAGANNATHAN be viable. They are allowed to accept
deposits up to ~1 lakh per account, and
75 per cent of this has to be invested in
in which Paytm was formed.
However, a straight reading of the
RBI’s report does not do full justice to
the performance of payments banks in
such a short term. Reason: as with any
new business, initial investments in
infrastructure, marketing, KYC (know-
your-customer) compliance, and cus-
tomer acquisition costs tend to be high.
A closer look at some of the other
ratios indicates that while payments
banks surely lose money, their operating
ratios were looking better in 2017-18
free wallet money, with the free float
being deployed in higher-yield gov-
ernment bonds.
Clearly, it is too early to write off
payments banks as unviable, for it is
only when their customer volumes are
cranked up that we can see the full ben-
efits of scale achieved at low per-cus-
tomer overheads.
Moreover, there are company-level
issues that may have prevented pay-
ments banks from doing better.
In the case of Airtel Payments Bank,
see some accretions. India Post, which
Quote-unquote
is the government’s post office outfit
with over 1,50,000 branches, most in
rural areas, should be the payments
player to watch, as it has both physical
and digital access to millions of lower-
value customers.
The restrictions on deposits and ban
on lending even small amounts to safe
customers circumscribe the business
models of payments banks needlessly.
Some tweaks in rules are called for. For In the discussion on the Rafale deal in the Lok
example, in case customer balances rise Sabha, Trinamool Congress' Saugata Roy had
temporarily above the ~1 lakh ceiling, Opposition members in splits when he
payments banks can be given time to likened Prime Minister Narendra Modi to
bring them down or retain the money Meghnad from Ramayana. Roy said Modi,
like Meghnad in Ramayana, is not facing

T
he Reserve Bank of India’s (RBI)
Trend and Progress of Banking
In India 2017-18 seems to suggest
that payments banks are still to find
their feet, with net losses for five banks
more than doubling from ~242 crore in
2016-17 to ~516 crore.
While the data is available for five
banks, as on date there are six payments
banks in existence: Airtel, Jio, Aditya
Birla, Paytm, Fino, and India Post. The
government securities. Not more than
25 per cent can be invested in fixed
deposits with regular banks.
Since they are constrained on both
the assets and liabilities sides, their busi-
ness model has to be built on the narrow
spreads available between their deposit
rates, and yields on short-term govern-
ment paper or bank fixed deposits. They
can also make money from idle cash left
as part of e-wallets, which was the avatar
compared to the year before. This
implies that as customer volumes start
picking up, the business models may
perk up too.
Between 2016-17 and 2017-18, pay-
ment banks’ return on assets improved
from -25.2 to -10.6, while net interest
margins went up from 2.8 per cent to
4.5 per cent. The high net interest mar-
gins suggest that a lot of the cash with
payments banks may well be interest-
Paytm and Fino, for instance, the RBI
barred them from adding new banking
customers for various transgressions,
including opening accounts without
the customer’s knowledge (Airtel), for
inadequate security on customer data
(Paytm), and for non-adherence to the
upper limit for deposits (Fino). These
restrictions surely cramped their
growth earlier.
The bans have now been lifted, and
with no interest being paid. Also, good
customers can be given overdraft facil-
ities, which can allow for some lending
operations with higher margins.
It is too early to write the epitaph of
payments banks, for they are still to
leverage scale and size to really make
their business models work profitably.
The author is editorial director, Swarajya
Twitter: @TheJaggi
debate in the House and hiding behind
Finance Minister Arun Jaitley (pictured). In
Ramayana, Meghnad uses his magical
powers to attack Ram's army from behind the
clouds. Roy also said Jaitley's memory was
failing him as he misquoted Ian Fleming, the
creator of James Bond. During his speech,
Jaitley had pointed to sundry defence scams
during Congress regimes: "Once is
happenstance. Twice is coincidence. Thrice is
conspiracy." Roy in the House, and later party
colleague Derek O'Brien in a tweet, corrected
Jaitley. "So FM Arun Jaitley misquotes Ian

Time for true universal basic income

If the new basic income programme is
restricted to the bottom 50 per cent of the
population, both urban and rural, it would
cover the most vulnerable groups
up supporting ever larger numbers,
perpetuating low income. Most of it is
spent on essentials, leaving hardly any
surplus to invest in income enhance-
ment measures. This vicious circle is
exacerbated when crop failures or mar-
ket crashes occur with increasing fre-
quency. Debts from usurious money-
lenders and diversion of crop loans for
consumption are both rather common.
SHREEKANT SAMBRANI
That leads to another basic prob-
lem for rural India seldom articulated
ILLUSTRATION BY BINAY SINHA
Using up available resources for loan
remedies. In this writer’s view, it is time
getted. The right to food and the
Mahatma Gandhi National Rural
Guaranteed Employment Scheme
(MNREGS) both use predetermined
cut-offs for beneficiaries.
If the new basic income programme
is restricted to the bottom 50 per cent
of the population both urban and rural,
it would cover the most vulnerable
groups. That would mean an annual
cost of about 2 per cent of the GDP.
This need not all be an additionality.
Joshi proposes that if the government
thoroughly revamps all subsidies, it
will have a “wiggle room” of about 6 per
cent of the GDP.
That may not be politically feasi-
ble, in view of the entrenched inter-
ests. But a couple of areas could still be
explored. The first is MNREGS. Since
Fleming James Bond in Parliament to suit
himself. Here is the correct quote: Once is
happenstance. Twice is coincidence. Three
times is enemy action..." The quote is from
Fleming's 1959 novel, Goldfinger.
'Double A' vs paperplanes
During the same discussion, Lok Sabha
Speaker Sumitra Mahajan barred Congress
president Rahul Gandhi from taking
industrialist Anil Ambani's name since he
was not a member of the House. Gandhi said
he would honour the Speaker's wishes and
started referring to the industrialist as
"double A". In his reply, Finance Minister
Arun Jaitley did one better. He said the
Congress leadership was sitting in the lap of
one "Mr Q", an allusion to Ottavio
Quattrocchi, who was once wanted in the
Bofors case probe. Congress members soon
entered the Well of the House to protest and
also took to shooting off paper planes in the
direction of the treasury benches. Jaitley said
the Congress members were perhaps
throwing paper planes in the memory of
Eurofighter Typhoon, which was also in the

P
rime Minister Narendra Modi
accepted that loan waivers or
market interventions are not like-
ly to relieve rural distress in his inter-
view on January 1, as argued earlier in
this space. Why is that so? And more
importantly, what should be done to
deal with this burning issue? The
answer lies in understanding what
causes the malaise in the first place.
I have previously posited an
income-deficit syndrome as the defin-
ing trait of rural India. The income
from the main economic activity, agri-
culture, is often not sufficient to meet
even the family consumption needs.
Low incomes caused by poor produc-
tivity and prices do not allow their
recipients to lead a life they consider
worthwhile. Unpredictability due to
both nature’s vagaries and price fluc-
tuations worsens the situation.
Individual landholdings have
grown smaller due to repeated divi-
sions. The added population finds vir-
tually no occupation other than tilling
the family plot. The limited land ends
or appreciated: Income shortfalls are
cumulative, adding to the debt burden,
but surpluses are not. In boom times,
deferred expenses — weddings, treat-
ment of illness, adding to the meagre
dwelling — take priority. The loan
backlog is rarely wiped out in such
periods. When the burden becomes
unbearable, waivers are demanded.
And seekers of quick political rewards
fan these fires to crisis points, as has
been happening now.
Agriculture is the occupation of the
last resort, hiding armies of the unem-
ployed (and sometimes, the unem-
ployables). Migration to cities just
shifts the locale of the problem, but
does not solve it. The only solution is a
shift of the population away from farm-
ing to a large, low-cost labour-inten-
sive rural production base feeding
industry everywhere. That needs sub-
stantial investment in job-creation
through infrastructure construction.
This will take years, possibly a genera-
tion or longer, to come about, far
beyond the five-year electoral horizon.
waivers would surely preclude such
permanent remedies.
But the rural populace or at least its
most vulnerable sections cannot wait
until this transformation occurs. Their
needs of a living, regular and pre-
dictable income are urgent and must
be met. As there are precious few alter-
natives available, direct transfers
become attractive interventions.
The Telangana Rythu Bandhu
Scheme involving grants of ~10,000 per
hectare per season (now ~12,500) has
received much favourable attention in
this context. The recent landslide vic-
tory of the incumbent state govern-
ment is rightly construed as the elec-
torate’s approval. But this scheme has
a major flaw: It goes against the tenets
of egalitarian development. Larger
farmers, many of whom may not need
any relief, will get higher benefits
linked to the holding size. It also
excludes tenant farmers, and more
importantly, the landless, the lowest
on the economic pyramid.
Dire situations warrant drastic
to consider seriously a modified ver-
sion of universal basic income (UBI).
The original idea, which has been
around for centuries, is that the state
pays all its citizens a basic income. The
Oxford economist Vijay Joshi elaborat-
ed it in the Indian context in his recent
book, India’s Long Road (2016). The for-
mer chief economic adviser, Arvind
Subramanian, devoted an entire chap-
ter to it in Economic Survey 2016-17.
Joshi calculates the cost of paying
every Indian ~17,500 (2014-15 prices) a
year as UBI (which will lift the lowest
income tier above the Tendulkar
poverty line) to be 3.5 per cent of the
GDP. Subramaniam’s estimate is a
comparable 4 to 5 per cent of the GDP.
This is where some caveats are need-
ed. These calculations sidestep the dif-
ficult question of selecting recipients
by making payments to all citizens. In
our present situation, that would be an
unaffordable proposition. Hard, arbi-
trary-sounding, choices must be made
regarding the beneficiaries to make the
programme both affordable and tar-
the basic income transferred would be
higher than the MNREGS wages
earned and entails no back-breaking
labour, there would be no justification
or need for it. That would offer a saving
of about ~50,000 crore. The FY 2018
Budget had proposed a food subsidy of
~1.7 trillion. With income transfers,
around ~1 trillion from this and some
other minor subsidies could be avoid-
ed. These savings would make the cost
of the income scheme just about 1 per
cent of the GDP, eminently affordable.
Farmers would no longer face heart-
burn of unenforceable MSPs or
demand loan waivers repeatedly.
This logic appears to be appealing to
the central government as well, since
the obvious electoral gain is a substan-
tial collateral benefit. When reports last
came in, it was supposed to be consid-
ering a transfer of ~2,500 per person
per month for 100 million people. The
time for this is just ripe (The first part of
the article appeared on December 28).
The author is an economist
race along with Rafale.
The story so far
Vice-President M Venkaiah Naidu, who is
also the Rajya Sabha chairman, launched
the Rajya Sabha's calendar for 2019 on
Wednesday. The calendar features 65
leaders, including 13 former chairpersons,
12 former deputy chairpersons, 26 leaders
of the House and 14 leaders of the
Opposition, since the inception of the
Upper House in 1952. The calendar notes
that for 34 years of its 66-year existence,
the Rajya Sabha did not have a leader of
the Opposition. Shyam Nandan Mishra of
the Congress-O was the first leader of the
Opposition from December 1969 to March
1971. Former Prime Minister Manmohan
Singh has the distinction of being the
leader of the Opposition and the leader
of the House in Rajya Sabha for the
longest duration of over six years and 10
years respectively.

INSIGHT > LETTERS

Howa bad loan farce gets another rerun History at Sabarimala man and not as the face of a party gear- tion. Modi has displayed his sheer
It'll become that much easier for the tycoons to rewind the credit ing up for crucial do-or-die elections a hypocrisy by making this absurd claim.
few months from now. I just love his He laid much emphasis on the dissent-
culture, back to the debtor-friendly show it always was tone and tenor, his comprehensive take ing view by Justice Indu Malhotra. It is
on virtually all major issues confronting strange that he conveniently chooses
ANDY MUKHERJEE credit cycle in May 2013, it became clear remove individual borrowers, and the the nation. He has truly risen above pet-
to the RBI that banks were using the share shrinks to 13 per cent. ty politics and said almost all in the

A
new year, a new central bank
governor. Yet the first salvo to
come out of the Reserve Bank of
India’s policy arsenal in 2019 is an
encouragement of good old “extend
and pretend” lending.
Banks and shadow banks are being
allowed a one-time restructuring of
loans of up to ~25 crore ($3.6 million) to
micro, small and medium enterprises
that were in default on January 1, with-
out having to mark them as nonper-
forming, the Reserve Bank of India
(RBI) said on Tuesday. Lenders are
being given an extension of 15 months
(up to March 31, 2020) to pretend that
these stressed loans are standard. All
they have to do is to make an addition-
al 5 per cent loss provisions. By con-
trast, a secured loan classified as non-
performing attracts immediate
provisioning of 15 per cent, rising pro-
gressively to 40 per cent — even 100 per
cent — as recovery became increasing-
ly doubtful.
Classifying restructured loans as
non-performing is a standard pruden-
tial requirement. India relaxed the
norm in 2001 to encourage banks to
clean up an overhang of corporate debt
that had piled up in the exuberant first
decade of the country’s economic lib-
eralisation. The solution back then lay
in encouraging lenders to send problem
loans to so-called Corporate Debt
Restructuring, or CDR, an out-of-of-
court mechanism that helped banks
recover some money in the absence of
a modern bankruptcy law. Lenders
could keep loans referred to the CDR as
standard on the books, meaning they
didn’t have to make steep provisions
for losses.
However, the temporary palliative
became a perennial crutch. When deal-
ing with the aftermath of a different
restructuring fig leaf to hide bad loans.
To end the abuse, the RBI said it would
scrap the asset-classification forbear-
ance by April 1, 2015.
Even before that day arrived, there
was enormous lobbying by banks at the
behest of powerful corporate borrow-
ers. India then was ranked 136th in the
world for resolving insolvency; a mod-
ern bankruptcy law was still more than
a year away. So RBI Governor
Raghuram Rajan relented and gave
lenders new tools — Strategic Debt
Restructuring, or SDR, and (a year lat-
er) Scheme for Sustainable Structuring
of Stressed Assets, or S4A — to avoid
making provisions.
It wasn’t a free lunch. Rajan also
began an asset-quality review in 2015,
forcing banks to step up disclosure of
bad debt. The stick annoyed errant
debtors more than the restructuring
carrot pleased them. Rajan had to leave
after just a single three-year term. But
his successor Urjit Patel continued to
tighten the screws. Now that there final-
ly was a functioning bankruptcy law,
Patel scrapped all the halfway houses –
CDR, SDR and S4A – in February last
year. Relaxed norms for asset classifi-
cation and loan-loss provisioning also
went away.
That shock therapy made corporate
lobbyists more livid. Facing an all-
round assault on the central bank’s
capacity for independent action, Patel
abruptly left last month before com-
pleting his tenure. The new RBI
Governor Shaktikanta Das has begun
his term by bringing back forbearance
in a small but significant way. It’s small
because India’s 101 trillion rupee cred-
it market is overwhelmingly skewed
toward large borrowers. Non-farm busi-
ness loans of less than ~25 crores
account for only 22 per cent of the pie;
Yet it’s a significant step politically.
Small business loans have been under
elevated stress since Prime Minister
Narendra Modi’s disastrous November
2016 move to outlaw 86 percent of the
country’s cash, a policy blunder fol-
lowed up by a goods and services tax
that raised compliance costs for a large
number of tiny firms. The nonper-
forming asset ratio for the larger of the
MSME borrowers — ticket size between
~10 crore and ~25 crore — was 14.5 per-
cent in June, up from 12.8 per cent two
years ago.
The banks don’t want this pile to
grow any further. That much is obvious.
It’s also clear that the Modi government
wants to ease the tax compliance bur-
den on small businesses ahead of gen-
eral elections that will be held by May.
However, it’s not the job of the banking
regulator to join the government as a
sentiment booster.
N S Vishwanathan, an RBI deputy
governor, said last April that “shorn of
all forbearances” India’s new regulato-
ry framework for stressed assets was
finally on par with international norms,
and that giving up on it would amount
to “letting go waste” India’s landmark
bankruptcy regulation.
That’s the risk now. Small business
owners — as well as distressed farmers
— have clout only before elections; bil-
lionaires wield their power indefinite-
ly. Getting politicians to promise farm-
debt waivers and 59-minute SME loans
is easy. But now that the RBI has start-
ed flip-flopping, it’ll become that much
easier for the tycoons to rewind the
credit culture — back to the debtor-
friendly show it always was.
The author is a Bloomberg Opinion
columnist covering industrial companies
and financial services
The entry of two women in their mid-
40s into the sanctum sanctorum (san-
nidhanam) of Sabarimala shrine
marked the end of a rigidly-followed
discriminatory custom. It is sure to go
down in history as a milestone in the
struggle for gender equality in India
and as a triumph of enlightenment over
obscurantism.
The frenzied backlash over the
implementation of the Supreme Court
order by the state government is under-
standable. But it is bound to die down
soon as there is no worthwhile cause to
drive it. The protest by small-minded
zealots cannot stop change in the
march of time. Parties that oppose it
and their youth and student wings must
see reason and abjure violence and stop
damage to public property. Instead of
unleashing senseless violence they can
reinvent themselves and spend their
time and effort on advancing the cause
of justice and freedom.
G David Milton Maruthancode
Modi, a true statesman
Your front page lead report by Archis
Mohan (Vicious cycle of loan waivers,
elections must end, January 2) is almost
like a beautiful new year gift. The Prime
Minister has spoken as a true states-
interest of the country. Remarkable,
considering the Bharatiya Janata Party
is not exactly on the pinnacle of confi-
dence after the recent debacle in sever-
al important states.
Notwithstanding his defence of
demonetisation and the clarion call,
“2019 election will be janta versus
mahagathbandhan”, his take on Ram
Mandir “ordinance can be considered
only after judicial process is over” and
the statement that “vicious cycle of loan
waivers and elections must end” are
both praiseworthy. Getting back to
“respecting institutions” is a very pos-
itive assertion, which should go a long
way in bringing back the absolutely to neglect the majority judgment of the
necessary order in the country. apex court and instead rely on the
Frankly, I think, his positive stand minority view. Modi's stand is however
and speaking beyond political bickering not surprising. The Bharatiya Jana
is a great sign that should also endear Sangh had opposed the Hindu code bill
him to the intelligentsia. Here’s wishing tooth and nail. Although the practice of
him success in his resolve and great triple talaq needs to be condemned
things for the nation. strongly, the BJP is using the issue for
Krishan Kalra Gurugram political gains.
Vikas Kamat Margao
All for political gain
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
In an interview given to a news agency,
Nehru House, 4 Bahadur Shah Zafar Marg
Prime Minister Narendra Modi (pic- New Delhi 110 002
tured) claimed that while the triple Fax: (011) 23720201 · E-mail: letters@bsmail.in
talaq issue is related to gender equality, All letters must have a postal address and telephone
the Sabarimala issue is related to tradi- number
> HAMBONE BY MIKE FLANAGAN
 >
OPINION 9
STAY INFORMED THROUGH THE DAY @ WWW.BUSINESS-STANDARD.COM.

Volume XXIII Number 101 ILLUSTRATION BY BINAY SINHA

pany, Saankhya Labs, with Indian IPR (it has 27
MUMBAI | THURSDAY, 3 JANUARY 2019 patents) in partnership with Sinclair Broadcast Group
and its subsidiary One Media, for the US market.

Europe’s strongest pillar This chip for TV sets, set-top boxes/ home gate-
ways, and tablets will receive broadcasts using next
generation standards like ATSC3.0 and 11 others. A
Twenty years on, the euro is both successful and popular future variant is planned for mobile devices thatwill
enable offloading of video and data traffic from 4G

T
wenty years ago, on January 1, 1999, a new currency came into being. networks through the broadcast network, facilitating
Eleven members of the European Union fixed their currencies’ the efficient use of 4G spectrum.
exchange rates against each other, thereby creating a new, single cur- Funded initially by Intel and General Motors,
rency zone; in 2002, euro notes and coins began to be exchanged and and latterly by Sinclair, Saankhya’s domestic back-
ing was from angel investors, and ISRO for the last
over the years that followed the number of eurozone countries expanded to 19.
couple of years, for joint development of vehicle
Now, only eight other members of the European Union do not use the euro — tracking devices. However, its products for wireless
excluding, of course, the United Kingdom, which is due to leave the EU in a few broadband that have been tested in India and in

Breaking out of the

months. The euro is now the second most powerful currency in the world, the con- other countries will give rural users access to broad-
servatism and reliability of the European Central Bank helping to build up con- cast and broadband, initially through WiFi, and in
fidence in it. It has also transformed life within Europe, making large parts of the the next phase, directly on handsets, if/when policies
here permit as they do elsewhere. For this, policies
continent truly borderless. Not only are there no border check posts, but money
need to change, giving access to broadcast spectrum

unproductive cycle
does not have to be changed — and, as a consequence, money flows seamlessly and pricing it on the lines the TRAI has recom-
across the eurozone. One quarter of all inter-bank lending in the eurozone flows mended for satellite spectrum for BSNL (instead of
across national borders to other parts of the common currency area. auction fees for assignment, one percent of rev-
The euro has thus survived all the disasters predicted by economists and oth- enues). India needs much more: policies that sup-
ers who worried about the inefficiencies that such a common currency would port long-horizon funds for manufacturing, and
purchase orders for domestic products in line with
bring in its wake. Some of these crises have been severe, and fundamental to the
euro’s design. The so-called eurozone crisis of 2011 onwards was a product of banks
Start with root causes, listen to professionals, set the policy WTO norms, to support local development and pro-
duction of high-tech products for domestic markets
binging on debt, particularly Southern European sovereign debt, denominated

“T
he numbers don’t add up. It is cyclical
in the euro. Unfortunately, the markets did not price this debt correctly, with here... one government… does things
spreads between (for example) Greek and German debt being too low. As a con- wrong, then a new one comes and wants to
sequence, when the time for repayment came, some Southern European gov- improve things. Sometimes it does not work out...”
These comments are not about India but about
ernments struggled. But because they had no control over their currency, they Argentina, a rich country once, now less so because
could not follow the time-honoured tradition of inflating away sovereign debt. The of recurring economic crises. An article in the
limits of European integration were clearly visible — a true currency area would Financial Times, “Argentina: a life of boom and bust”,
require political union as well as economic union, enabling intra-region transfers. is a cautionary tale we would do well to heed.* This is
Without such transfers, giving up the right to inflate away debt makes little sense what happens when the numbers repeatedly don’t
from a government’s point of view. add up, resulting in cycles of bust, bailout and partial
recovery. For India, there are also
And yet the euro is notably popular, even in Greece — or in Italy, which has the increasing pressures and con-
elected a populist government bent on challenging the authority of Brussels and straints of a large, underserved
of the European Central Bank. Nowhere in the eurozone does the euro’s popularity population. Inadequacies of water
dip below 60 per cent; in many parts of the eurozone, its popularity is over 80 per supply, sewerage, waste manage-
cent. Now that the Schengen Agreement is mired in controversy following prob- ment, electricity, communications,
lems with the intra-European allocation of migrants, the euro is perhaps the most transport, basic education and
health care are compounded by a
politically popular part of the European project. Which is, in a way, revealing — legacy colonial framework. In addi-
whatever economists and governments may say, they are not thinking from the tion, many political leaders appear
point of view of common Europeans. Few Europeans would vote, for example, to coast opportunistically while
against the euro in a plebiscite. Who would want to see their bank savings rede- being swept in or out of office, driv- SHYAM PONAPPA
nominated away from a euro that has proved its safety and stability to some oth- en by short-term election cycles,
seemingly uncomprehending of or
er currency that will have to rebuild its reputation? The theoretically weakest part
indifferent to the systemic changes required. Our
of the European project is, in fact, its strongest pillar. attitude as citizens aggravates problems because of
our overweening sense of rights without responsi-
bilities and obligations, and insufficient discipline.
On a wing and a prayer As a consequence, all the promise of seemingly
inexhaustible demand in India that could result in
thriving markets, with prosperity and well-being for
Air India’s revival plans are never-ending more and more citizens, is only partially realisable. In
markets to ensure cash flows. It is indeed difficult to
effect the requisite structural changes and social
upliftment for improving productive capacity. This is
because whether it is for high-tech, or for agricultur-
al production and marketing, or education, solutions
need to be based on understanding and addressing
root causes. Setting politics aside, appropriate long-
term and short-term plans are needed, with system-
atic, competent execution. All these require an inte-
grated systems understanding and application,
extending far beyond the pressures of near-term elec-
tions.
What is common to failures in
different areas, whether it is infra-
structure, high-tech products, or
farming, is the absence of end-to-
end system design and application
in policy formulation, including
market organisation and access,
and financial support. This is true
even within verticals, not only
between them. Consider informa-
tion technology, communications,
and the past success of mobile
telephony. Despite the enormous
market, and the risk of over-reliance on imports,
there has been insufficient support for design, devel-
opment and manufacturing. Even in the case of
mobile handsets, Indian companies took an easy-
pickings assembly approach, emphasising labour
and logistics arbitrage based on proximity, instead of
technology, product development and design that
could have led to higher value addition. This has
and exports.
In the very different area of food production and
supply, while the green revolution and white revolu-
tion overcame insufficient production, inadequate
policy support and market design prevented a tran-
sition to a self-generating, sustainable model. Instead,
inappropriate system design and policies put farmers
under severe duress for reasons that change, such as
monsoon failures, production failures, for example,
in lentils (dal) or cotton, or production gluts such as
lentils in 2017, and tomatoes in 2018.
Such situations can end in tragedy for farmers
and their families because of irremediable debt.
However, the way to address defaults not arising
from fraud/bad faith is to reschedule payments so
that cash flows service outstandings, and not to waive
the loans. Solutions need to include ways of alleviat-
ing loan repayments through increasing repayment
capacity (by cash generation as well as subsidies),
while not destroying financial discipline and market
dynamics. Elements of the solution may be:
„ A moratorium on the principal and interest, and
rescheduling of debt;
„ Avoidance of waivers;
„ Developing institutional support for constructive
shifts in farming practices, for example, to inten-
sive agriculture in smaller areas, warehousing and
renting equipment such as tractors and rotovators,
and so on. This requires giving up legacy practices
such as broadcasting seeds, and adopting coopera-
tive methods for smaller holdings.
We need policies to aid productivity, financial
support, and market organisation and access. The

A
s the government submits yet another revival plan for Air India, the Argentina, it is the repeated cycle of overspending, led to Chinese companies dominating India’s hand- government has to lend its support, and so does the
hyperinflation, devaluation, bust, and IMF bailout. set market. Opposition. Experts in systems thinking should be
state-owned airlines finds itself facing Hobson’s choice. It needs to In India, imports of oil and electronics stoke the threat So is high-tech manufacturing a lost cause? Here included in interdisciplinary problem solving, to
enhance its performance to appeal to buyers, after a high-profile fail- of overspending. Even worse are the irresponsible is one surprising counterfactual: Last week in New facilitate multipartisan policies. Such steps will help
ure last year. But as long as the government remains an owner, the politics to keep opponents off balance. These vary Delhi, the communications minister launched a us become more productive.
chances of achieving the private-sector standards of profitability and produc- from allegations to discredit opponents, to attempts to state-of-the-art chip that complies with global TV
tivity to attract buyers are slim. This is not for want of trying. Earlier this week, gridlock the economy, or to buy favour through give- standards for next generation convergence of broad- shyamponappa@gmail.com
aways that bankrupt the treasury, without sufficient cast and broadband. Incredibly, this chip was *https://www.ft.com/video/4fb41181-1ec0-48d0-9aa0-
Civil Aviation Minister Suresh Prabhu said the state-owned airline has launched
attention to organising production processes and designed and developed by a Bangalore-based com- b8ba9c1be5f6
a global search for professionals to fill top positions in the airline. A few days ear-
lier, the airline’s chairman and managing director published a piece in the air-
line’s monthly magazine asking the 20,000 employees to step up to the plate. “We
all have to tighten our belts, adopt strong fiscal discipline and streamline our
functioning without compromising on our operational efficiency. At the same
time, we need to generate revenue in every possible manner to stay afloat,” he
Registering for Aadhaar in 2019 tecting Aadhaar numbers, nobody was. Data con-
trollers would gladly share the Aadhaar number with
their contractors, that is, data processors, since
nobody could be held responsible. Now, since their
wrote. Junior aviation minister Jayant Sinha has spoken of “differentiated

strategies” for its core businesses, and “robust organisational reforms”.
Given that the airline is surviving on taxpayer money, these are unexceptional
goals, as is the plan to hive off the ~55,000 crore debt into a special purpose vehi-
cle. The question, however, is whether such an ambitious agenda can be fulfiled.
To be sure, CEOs with deep experience in the global airline industry have been
part of the Indian aviation landscape since the industry was opened to private
sector investment in the nineties, with someone like Wolfgang Prock-Schauer
having done the rounds from Jet Airways to GoAir and now IndiGo. But they have
been happy to join airlines that operate on commercial lines, within lean and
competitive strategic paradigms. It is also worth noting that several of these exec-
utives quit owing to the hands-on approach of the airlines' owners. But Air
India is sui generis. If government ownership continues, it is unlikely to be an
attractive proposition for any proficient private sector executive, let alone a
foreign one. The prospect of the government as a residual shareholder scuttled
privatisation efforts last year. No less formidable are the airline’s feisty, deeply
politicised multiple unions, legacy costs and culture and status as the default
choice for ministers and bureaucrats. The combination of these factors made it
impossible for Air India to make profits even in good times, even when it was
headed by reasonably competent bureaucrats appointed by the government.
The airline made a net loss of ~6,288 crore in 2016-17, the last declared
results, when the industry was in an upcycle. Finally, the recent history of pri-
vate-public corporate ownership in Maruti Udyog, in which the government
raised many hurdles before Suzuki could take full control is unlikely to enhance
a private buyer’s confidence in operational autonomy. The problem for Air India
is that the airline needs to take the kind of hard commercial decisions — cost-
cutting and downsizing — that are taken for granted in the business world. It
will take an intrepid investor indeed to commit investment to such a large
undertaking, that too at a time when the outlook on oil prices presages chal-
lenging times for even private sector competitors, Jet Airways being a promi-
nent example. With parliamentary elections due, the government is unlikely to
make any drastic moves on Air India. But for any incoming government faced
with the challenge of kick-starting the economy, bankrolling Air India may no
longer be an option.
L
ast November, a global committee of lawmakers
from nine countries the UK, Canada, Ireland,
Brazil, Argentina, Singapore, Belgium, France
and Latvia summoned Mark Zuckerberg to what they
called an “international grand committee” in London.
Mr Zuckerberg was too spooked to show up, but
Ashkan Soltani, former chief technology officer of
the Federal Trade Commission, was among those who
testified against Facebook. He said “in the US, a lot of
the reticence to pass strong policy has been about
killing the golden goose” referring to the innovative
technology sector. Mr. Soltani went
on to argue that “smart legislation
will incentivise innovation”. This
could be done either intentionally
or unintentionally by governments.
For example, a poorly thought
through blocking of pornography
can result in innovative censorship
circumvention technologies. On oth-
er occasions, this can happen inten-
tionally. I hope to use my inaugural
column in these pages to provide an SUNIL ABRAHAM
Indian example of such intentional
regulatory innovation.
Eight years ago, almost to this date, my colleague
Elonnai Hickok wrote an open letter to the
Parliamentary Finance Committee on what was then
called the UID or Unique Identity. She compared
Aadhaar to the digital identity project started by the
National Democratic Alliance (NDA) government in
2001. Like the Vajpayee administration which was
working in response to the Kargil War, she advocated
a decentralised authentication architecture using
smart cards based on public key cryptography. Last
year, even before the five-judge constitutional bench
struck down Section 57 of the Aadhaar Act, the UIDAI
preemptively responded to this regulatory develop-
ment by launching offline Aadhaar cards. This was to
be expected especially since from the A P Shah
Committee report, the Puttaswamy Judgment, the B N
Srikrishna Committee consultation paper, report and
bill, the principle of “privacy by design” was emerging
as a key Indian regulatory principle in the domain of
data protection.
The introduction of the offline Aadhaar mecha-
nism eliminates the need for biometrics during authen-
tication. I have previously provided 11 reasons why
biometrics is inappropriate technology for e-gover-
nance applications by democratic governments, and
this comes as a massive relief for both human rights
activists and security researchers. Second, it decen-
tralises authentication, meaning that
there is a no longer a central database
that holds a 360-degree view of all
incidents of identification and
authentication. Third, it dramatical-
ly reduces the attack surface for
Aadhaar numbers, since only the last
four digits remain unmasked on the
card. Each data controller using
Aadhaar will have to generate his/her
own series of unique identifiers to
distinguish between residents. If
those databases leak or get breached,
it won’t tarnish the credibility of
Aadhaar or the UIDAI to the same degree. Fourth, it
increases the probability of attribution in case a data
breach were to occur; if the breached or leaked data
contains identifiers issued by a particular data con-
troller, it would become easier to hold them account-
able and liable for the associated harms. Fifth, unlike
the previous iteration of the Aadhaar “card”, on which
the QR code was easy to forge and alter, this mecha-
nism provides for integrity and tamper detection
because the demographic information contained with-
in the QR code is digitally signed by the UIDAI. Finally,
it retains the earlier benefit of being very cheap to
issue, unlike smart cards.
Thanks to the UIDAI, the private sector is also
being forced to implement privacy by design.
Previously, since everyone was responsible for pro-
own unique identifiers could be used to trace liabili-
ty back to them, data controllers will start using tokeni-
sation when they outsource any work that involves
processing of the collected data. Skin in the game
immediately breeds more responsible behaviour in
the ecosystem.
The fintech sector has been rightfully complaining
about regulatory and technological uncertainty from
last year’s developments. This should be addressed by
developing open standards and free software to allow for
rapid yet secure implementation of these changes. The
QR code standard itself should be an open standard
developed by the UIDAI using some of the best practices
common to international standard setting organisa-
tions like the World Wide Web Consortium, Internet
Engineers Task Force and the Institute of Electrical
and Electronics Engineers. While the UIDAI might still
choose to take the final decision when it comes to var-
ious technological choices, it should allow stakeholders
to make contributions through comments, mailing
lists, wikis and face-to-face meetings. Once a standard
has been approved, a reference implementation must
be developed by the UIDAI under liberal licences, like
the BSD licence that allows for both free software and
proprietary software derivative works. For example, a
software that can read the QR code as well as send and
receive the OTP to authenticate the resident. This would
ensure that smaller fintech companies with limited
resources can develop secure systems.
Since Justice Dhananjaya Y Chandrachud’s excel-
lent dissent had no other takers on the bench, hold-
outs like me must finally register for an Aadhaar num-
ber since we cannot delay filing taxes any further.
While I would still have preferred a physical digital
artefact like a smart card (built on an open standard),
I must say it is a lot less scary registering for Aadhaar
in 2019 than it was in 2010, given how the authenti-
cation modalities have since evolved.
The author is executive director, Centre for Internet
and Society

BJP’s rebel with a cause

BOOK REVIEW
A K BHATTACHARYA
This is a book that the Congress cannot do
without in the forthcoming general elec-
tions. Everything that has gone wrong
with Narendra Modi’s government has
been discussed meticulously and set out
in its 11 chapters.
If you still harbour doubts about what
the book intends to achieve, read the last
four sentences of its epilogue: “In sum-
mation, the Modi government is just
about event management. He is the best
in creating false impressions. In the
process, Modi has given India its ‘lost
half-decade’. Elect him again and by 2024
it will be a lost decade.”
That this statement is written by
Yashwant Sinha, a well-regarded and
competent finance minister in the Atal
Bihari Vajpayee government for about
four years, adds to the book’s special
appeal and also raises obvious questions
about why he has written this book now.
He, too, is acutely conscious of this.
Mr Sinha says he was not always a crit-
ic of Mr Modi. Indeed, he was among the
first to have sensed Mr Modi’s popularity
and had announced that he should be
made the Bharatiya Janata Party’s prime
ministerial candidate in the 2014 elec-
tions. His disappointment is that in spite
of the BJP securing a majority in the Lok
Sabha elections and the fact that the new-
ly elected government had everything
going for on all fronts, the promises made
were hardly fulfilled.
Mr Sinha writes he waited for 40
months before starting to speak out.
“While others may have stifled their own
ty and the disbursal of bank loans, which A running theme in all the chapters is problematic in Mr Modi’s governance style
have dried up thanks to the non-perform- how the Atal Bihari Vajpayee government and policies. Readers are left wondering if
ing asset crisis, Modi’s government threat- had governed with greater vision, more Mr Sinha, with his vast experience as a
ened the RBI’s autonomy, another move meticulous planning and better outcomes. bureaucrat and a minister, should have
dissent, I have not. I cannot remain silent; fraught with long-term negative conse- In the chapter on the goods and services offered some alternative strategies to avoid
history will not forgive me if I did. I speak quences”. tax (GST), Mr Sinha rightly bemoans the the kind of mistakes Mr Modi made. For
out now in the national interest, not for An entire chapter is devoted to the way fact that the Modi government did not instance, the chapter critiquing the gov-
any other reason.” He does not leave you the government has tried to dress up the embrace a three-rate structure from the ernment’s Make in India campaign under-
to guess what those other reasons could numbers on the economy’s gross domes- start — a platform that he as finance min- lines the problems but does not offer a way
be. He clarifies right at the start of the tic product (GDP) by, among other things, ister had set up with a standard Cenvat out of the crisis in Indian manufacturing.
book that he has no personal vendetta changing the base year. More worrying is rate of 16 per cent, along with a lower mer- Are labour law reforms a way out?
against Mr Modi for not his revelation that the gov- it rate and a higher demerit rate. For serious readers, the chapter head-
appointing him a minister or Demonetisation, ernment has plans to change Mr Sinha also draws attention to the lines do not enhance the book’s appeal.
giving him some other post, according to the the base year for GDP calcula- fact that capital expenditure has not seen Flippant titles such as “Pradhan Mantri
“as some people incorrectly author, led to tion once again. What, unfor- any significant increase in relation to GDP, Attention Deficit Disorder Yojana” to refer
speculate”. another major tunately, dilutes the authority and particularly in relation to revenue to the many schemes that Mr Modi has
Not surprisingly, Mr Sinha flaw in the way of the book is that such an expenditure. He makes fun of Mr Modi’s launched or “Gayi Sarkar Teri Taxation”
reserves his harshest words the government important statement is based failure to privatise Air India. Mr Sinha does for the GST undermine the gravity of the
for demonetisation. He calls it dealt with the on rumour and hearsay. not mention, however, that he, too, had arguments that Mr Sinha has put forward
a catastrophe and, worse, he crisis in the micro, The most illuminating proposed the privatisation of Indian in many of the chapters.
says it broke the back of BJP’s small and medium chapter is on Mr Modi’s style Airlines in his Budget of June 1, 1998. That
core vote bank — the micro, enterprises sector of functioning. Mr Sinha’s proposal, too, did not get implemented.
small and medium enterpris- valid criticism is that the Such is India’s politics. INDIA UNMADE
es (MSME). Demonetisation, according to prime minister has centralised the deci- The book is easy to read, perhaps How the Modi Government Broke the
him, led to another major flaw in the way sion-making process and, therefore, because it is co-authored by Aditya Sinha, Economy
the government dealt with the crisis in the deprived himself of the benefits of the a journalist. There is no great analysis in it, Yashwant Sinha with Aditya Sinha
MSME sector. He argues that “to mollify institutional memory of a government, but Mr Sinha has competently put togeth- Juggernaut
this sector and forcefully improve liquidi- its civil servants and technocrats. er in one volume all that one may find 242 pages, ~699
 The Smart 1QUICK TAKE: INDIA GROWTH TO AID GLENMARK

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Listing no boon for small firms THE COMPASS

Dip in tractor sales a temporary blip

A fifth of listed SMEs saw sharp fall in revenue growth; analysts say timing of IPO a key factor
JASH KRIPLANI
REALITY CHECK
for M&M, demand seen rising again
Mumbai, 2 January
Net sales (~crore) FY16 FY17 FY18 Farm sector worries and marginal market share loss
T
he small and medium
enterprises’ (SMEs) list- resulted in tepid tractor sales in December

97.85
ing offers investors a

70.90
67.48
chance to participate in high- HAMSINI KARTHIK sons for the fall in tractor

54.96
growth stories at an early stage volumes. Analysts say that

45.39

45.65
of their business cycle. The stock of automobile with Escorts growing its

41.80

39.06
However, one-fifth of the major Mahindra and domestic tractors volume

35.03
recently listed SMEs have Mahindra (M&M) was the by 28 per cent in December,

26.28

27.16
25.56
24.15
19.97
clocked single-digit top line biggest loser among the BSE it could have disturbed
ILLUSTRATION: BINAY SINHA

growth or in some cases saw
de-growth after these compa-
nies reported median growth
of more than 50 per cent before
listing.
Take the case of the gems
and jewellery company Pure
Giftcarat, which got listed on
May 8, 2017. Its net sales had
doubled to ~97 crore in 2016-17
(FY17), from ~45 crore in 2015-
16. But afte r listing,
three-fourth of the company’s
top line got wiped out, as net
sales dropped to ~24 crore in
2017-18 (FY18).
The data analysed from
Capitaline shows that of the 97
SMEs that got listed on the
SME platform in 2017 (April-
December), around a dozen
companies’ net sales fell in the
range of 11-93 per cent in FY18.
Meanwhile, eight reported sin-
gle-digit growth in FY18.
The Ahmedabad-based
Riddhi Corporate Services’
growth figures in FY17 and
FY18 (after listing) are in stark
contrast. The company - which
offers business process out-
sourcing services to telecom,
banks, and non-banking finan-
cial companies - reported a top
line growth of more than 60
per cent in FY17. The top line
dropped by 70 per cent in FY18
to ~19 crore.
Analysts say investors look-
ing to bet on an SME’s initial
public offering (IPO) need to
assess the company’s ability to
sustain long-term growth,
instead of getting swayed by
multifold growth figures
reported in the years preceding
the IPO.
“SMEs showing excessively
sharp growth, compared to the
sector peers listed on the main-
board of the exchanges, should
be a red flag,” said Balaji
Vaidyanath, chief executive
officer of Crest Wealth
Management.
Analysts add there could
also be instances of window-
dressing of the financials for
prospects of stronger listing.
Experts say some of the
issues may be related to the
timing of the public offering.
Pankaj Murarka, founder of
the Renaissance Investment
Managers, pointed out that
some of the IPOs might be tap-
ping the public markets when
the management feels their
business growth has hit a cer-
Riddhi Pure
Corporate Giftcarat
Source: Capitaline
tain peak. “It is normal for
companies to seek optimum
value for their businesses and
therefore, the financials
around the IPO are typically
strong,” he said.
According to investment
bankers, quality IPOs - where
the size of the issue is more
than ~10 crore — is a better
indicator of how SMEs per-
form after listing.
While the situation
improves when the sample
size is narrowed down to these
‘quality’ IPOs, six of these IPOs
reported 13-73 per cent drop in
top line after listing. The medi-
an top line growth for these
companies was 50 per cent
Shri Ram Vadivarhe
Switchgears Specialty
Chemicals
before listing. According to
bankers, the SME IPO pipeline
is strong. Bankers suggest if
market conditions remain sta-
ble, a healthy number of SMEs
could launch their public
issues in 2019. The Securities
and Exchange Board of India
(Sebi) is closely watching the
SME IPO space as it wants to
create an enabling environ-
ment for such companies.
Earlier in the year, Sebi
reduced the minimum anchor
investor size from ~10 crore to
~2 crore for SME IPOs.
In 2018, SMEs raised ~2,455
crore through IPOs. A total of
145 firms got listed on the SME
platforms during the period.
10.67
Sensex pack, dropping
about 5 per cent on
Wednesday.
Shradha Uninspiring December
Infraprojects sales numbers, particularly
(Nagpur) that of its tractor division,
led to selling in the stock.
While the overall sales
numbers came at 39,755
units, up just a per cent
higher than December 2017
volumes, weakness was sig-
nificantly felt in the tractor
division.
Tractor volumes for the
month dipped by 6 per cent
year-on-year, led by a 2 per
cent dip in domestic
demand and 45 per cent
decline in exports.
A host of reasons, rang-
ing from farm sector stress,
decline in funding by non-
banking financial compa-
nies and overall reluctance
in buying sentiments, led to
December’s weak show.
Yet, analysts say it would
be premature to judge the
strength of rural demand.
“After the state elections,
volume growth should
resume from February,”
says Ankit Merchant of SMC
Global.
Even M&M’s manage-
ment echoes similar views.
Pawan Goenka, managing
director of M&M, feels that
the insipid festive season
demand in 2018 resulted in
the dip in volumes.
“Both November and
December were spent in the
selling-off of piled up inven-
tory. The January-February-
March period should see a
true reflection of where the
demand lies,” he adds.
Marginal ceding of mar-
ket share to competition
may also be one of the rea-
M&M’s sales.
Nonetheless, M&M with
42 per cent market share
retains its lead position.
This is why Merchant is
hopeful that as farm loan
waivers materialise, it
should help revive demand
for tractors. That aside, trac-
tors and utility vehicles
(UVs, in which M&M is
again the market leader),
tend to attract higher
demand ahead of elections.
“We’ve seen this trend in
the past 20 years and believe
that it will again play out
from March-April, when
election campaigning picks
momentum,” says an ana-
lyst from a brokerage firm.
Therefore, while there
could be a month or two of
pain ahead for M&M, ana-
lysts remain bullish in the
stock. Its reasonable valua-
tion (14.5 times FY20 earn-
ings) after the recent cor-
rection also adds an appeal
to the stock.

‘Staying away from mid, Markets fall on fear UltraTech Cement stock likely to be
of global slowdown impacted by near-term hurdles
small-caps not an option’ SUNDAR SETHURAMAN INTRA-DAY
Besides pricing pressure, muted demand from the trade
The fall in global liquidity with the end of restriction on money supply needs to be watched closely, says Mumbai, 2 January
(As on 2/1/2019) segment and recent acquisitions could hit margins
AJIT MENON, chief executive officer of DHFL Pramerica Mutual Fund. In an interview with Ashley Coutinho,
he says valuation of indices are at the current levels due to extreme overvaluation in certain pockets but The benchmark indices saw a Change SHREEPAD S AUTE As of September 2018,
not all segments are at historical highs. Edited excerpts: sharp fall on Wednesday, Close Change 1D (%) the company’s debt stood at
amid concerns of slowdown Sensex 35,892 -363 -1.0 Despite a robust demand ~19,769 crore, on a consoli-
What is your outlook on the market for the in global growth, with China’s trajectory, 2018 was not a dated basis. Margins at the
year ahead? manufacturing PMI slipping Nifty 10,792 -117 -1.1 good year for the cement operating profit level are
Our local micros are improving, headwinds to a 19-month low. BSEAuto 20,103 -623 -3.0 sector on account of pricing expected to remain around
in the form of challenging macros are The Sensex fell 363 points, Source: Exchanges pressure. The stock of the September 2018 quarter
transforming into tailwinds. But the other or 1 per cent, closing at 35,892. cement major Ultratech level of 18 per cent till FY21,
phenomenon that needs to be watched The Nifty ended at 10,792, Cement (UTCEM) declined say analysts.
carefully is the impact of the waning global after falling 117.60 points; los- disappointing auto sales num- 7 per cent in 2018, under- What could cap the
liquidity with the end of curbs on money ing slightly more than 1 per bers also dampened the senti- performing a 6 per cent rise downside risk to UTCEM’s
supply. cent. The markets opened on ments. The rupee fell 1 per in the Sensex. profitability, besides cost
Domestically, market indices are quoting a muted note on account of cent to close at 70.17, com- Analysts believe that the efficiency measures, is a
at a premium to their historical averages but weak Chinese PMI Data. pared to the previous day’s stock is unlikely to see any benign cost environment.
the premium currently is not very high as it The Chinese manufactur- close of 69.43. significant upswing, even in The company’s recent With the recent sharp
was in the beginning of the year. Also, ing gauge fell to 49.7 in The BSE Auto index fell the near term, as UTCEM is acquisitions — Ultratech correction in the crude oil
valuation of indices are at high levels due to December from 50.2 in previ- more than 3 per cent. All con- unlikely to exercise pricing Nathdwara Cement (for- prices and rupee-US dollar
extreme overvaluation in certain pockets. ous month. This was the low- stituents of the auto index power in spite of its leader- merly Binani Cement) and exchange rate, prices of key
Not all segments are at historical highs. Even est reading since May 2017. lost. Eicher Motors was worse ship position. Century Textile — have cost elements, i.e. diesel and
today, there are opportunities that offer a Market participants said of the lot, as it ended 8.71 per Besides lower cement improved its leadership petcoke, have also fallen.
decent possibility of wealth creation in the that China’s manufacturing cent down. The share price of prices even after the festive position in all the regions This should help in
long run. activity falling is a sign of a TVS Motors fell by 5.34 per season, demand is being except North India. terms of logistic and ener-
global economic slowdown cent. Hero Motocorp, Maruti driven mainly by the low- However, the same will gy cost, which together
What is your view on mid and small-caps as and the adverse effect of the Suzuki and Tata Motors each profitable and highly com- weigh on the company’s accounted for over 60 per
investment bets? trade war on China’s manu- fell by more than 2 per cent. petitive non-trade segment. short-term earnings, amid cent of the total cost in the
Staying away from mid- and small-caps is not facturing activity. “The weak auto sales num- UTCEM is unlikely to increase in interest cost and September 2018 quarter.
an option. The allocations should be decided “There are enough indica- bers were due to the liquidity undertake sharp price hikes, depreciation. However, this will help
based on the overall asset allocation. Though tors to show that there will be crunch that prevailed during even in the near term. According to Morgan only if the lower cost bene-
mid- and small-cap indices look expensive, a slowdown in the global the festive season. If auto sales Analysts at Emkay Stanley, with Century fits are not passed on to the
there are quite a few good investment industries. During the same period, despite growth. Investors are con- continue to remain tepid, it is Research believe that high- Textile’s takeover (for consumers.
opportunities in the space after a correction large growth in assets of the MF industry, cerned about the rising volatil- a sign of the overall economy er demand from the non- instance), UTCEM’s net While lower costs and
in valuations. Capacity utilisation has there were only few isolated instances of ity as there is no clarity on tar- weakening,” said Siddhartha trade segment, coupled debt is estimated to rise to improving utilisation are
significantly improved, balance sheets are defaults for MF schemes. The industry, iff wars. Crude oil prices have Rastogi, managing director of with increased competition ~23,000 crore from the positives, investors should
now deleveraged and quality companies will especially the fixed income managers, need also shown unprecedented Ambit Capital. between cement manufac- beginning of FY20, though wait for an improvement in
benefit from the operating leverage. to be complimented for evolving robust volatility in the last year,” said The possibility of a farm turers, will lead to a muted leverage position would be pricing before taking an
processes that to a large extent have a Dhiraj Relli, managing direc- relief package and lower tax pricing power. comfortable. exposure to the stock.
What bearing will the general elections have safeguarded investor interest. tor of HDFC Securities. collection has added to
on the market? The weakness in rupee and investors’ worries.
Closer to the elections, the markets tend to Sebi recently reduced total expense ratios
witness volatility. From an investor’s for mutual fund schemes. What is the overall
perspective, it is important to remember that impact of this move?
markets have moved around 11 times from The industry was by and large sticking to
their lows in the year 2000. During these 18 Association of Mutual Funds in India’s
years, we have seen three general elections (AMFI’s) guidelines restricting commission
and numerous state elections. payouts in accordance to the mandated
Over the years, what we have seen is expense ratios. A move that can have a
that the economic policies of major bigger impact is the banning of upfront
parties are broadly on similar lines. So, commission.
investors should use the volatility to The new financial dynamics with
add to equities from a long-term trail commission will mean a
perspective if their asset allocation permits. substantially longer payback period/break
even for new entrants into the advisory
Mutual funds have seen sizeable inflows this business. This could work in favour of
year. What changes do you foresee as the existing distributors. It would be interesting
industry grows in size? to see if some segments of distribution shift
Manufacturers will have to move away from focus on products with upfront payouts and
product focus towards solution orientation. A the extent of shift.
product or a combination of products will For manufacturers, it is business as usual.
ultimately have to come as a challenge for an Having a level-playing field across products
end investor to make the manufacturer would be best and we will probably not have
relevant in a competitive market. to wait long as regulators take steps to ensure
Solutions could include age-linked asset that consumers don’t lose faith in the
allocation facility that helps create a industry.
customised path to retirement. The financial
intermediaries will rely more on value The markets regulator recently introduced
addition through holistic planning for the norms for categorisation of schemes. Do you
accumulation as well as the distribution think this is the right step?
phase along with leveraging technology to Yes. When efforts are being made to increase
create ease of transacting. retail penetration of MFs especially beyond
top 30 cities, it is important to have standard
Amtek Auto and IL&FS went through definition. The categorisation reduces the
troubled times and a lot of fund managers possibility of mismatch between the
were caught off guard. Have fund houses investors’ expectations and product
stepped up diligence in assessing debt attributes. Despite the framework for each
papers? category there is enough leeway for fund
There is always room for improvement. managers to operate.
However, episodes like Amtek and ILFS need In case of a focused fund, the scheme can
to be viewed from a different perspective. have maximum 30 stocks. However, it is up to
Over the last 6-7 years, we saw a large section the fund manager to decide whether it should
of the banking industry face the challenge of be large cap oriented, midcap oriented or a
rising NPAs due to defaults across various multicap fund.
.
MUMBAI | THURSDAY, 3 JANUARY 2019 THE SMART INVESTOR 11 <

Jewellers
welcome IGST State-run banks may see HDFC MF pips ICICI Pru to
exemption become top asset manager
RAJESH BHAYANI
Mumbai, 2 January

Jewellery exporters have wel-

recovery of MTM provisions ASHLEY COUTINHO
Mumbai, 2 January CHANGE IN PECKING ORDER
comed the government's Recent fall in yields on govt bonds, RBI’s open market operations are key factors MostAMCs sawde-growth in assets last quarter
decision to exempt 3 per cent HDFC Mutual Fund has over- December 2018 Average AUM (~ cr) %change
of integrated goods and serv- SHREEPAD S AUTE back, lower G-Sec yields taken ICICI Prudential MF to September 2018
335,196 9.3
ices tax (IGST) on gold Mumbai, 2 January would help in terms of liq- become the country’s largest HDFC MF 306,588
sourced from nominated uidity. According to CLSA, asset manager, after trailing the 308,166

A
agencies, effective January 1. part from the central banks might push sale of G- latter for more than two years. ICICI Prudential MF -0.8
310,681
“We commend the gov- government’s direct Secs to book gains. This HDFC MF’s average of 264,668
ernment’s decision on 3 per support in the form of would help expand the liq- assets under management SBI MF 254,146 4.1
cent IGST exemption on additional capital infusion to uidity base, enabling higher (AUM) stood at ~3.35 trillion for 242,5612
gold sourced from nominat- some public sector banks, a credit growth amid the prob- the quarter ended December,
Aditya Birla Sun Life MF 54,451 -4.7
ed agencies,” said Pramod sharp correction in govern- lems at non-banking finance a rise of 9.3 per cent over the Reliance MF 236,885 -3.5
Kumar Agrawal, chairman ment bond (G-Sec) yields has companies and housing previous three-month period. 245450
of Gem & Jewellery Export also been of help. finance companies. Those of ICICI Prudential MF, UTI MF 157,5861 -5.0
65,946
Promotion Council. The GST The Nifty PSU Bank index MTM gain and availability on the other hand, slipped
Kotak Mahindra MF 139,5621 3.7
Council felt the need to surged 14 per cent in the of liquidity also mitigates nearly one per cent to ~3.08 tril- 34,583
exempt intra-state supply of December quarter, against a pressure to increase deposit lion, shows data from the 110,521
gold by nominated agencies, 0.6 per cent fall in the general rates, amid relatively slower Association of Mutual Funds Franklin Templeton MF -0.8
111,403
in public interest under the benchmark Nifty 50. growth in deposits. This in India. ICICI Pru had over- 81,670
Axis MF -6.9
scheme for ‘export against As of end-December, yield would propel the spread (dif- taken HDFC MF — which had 87,678
supply by nominated on the 10-year G-Sec stood at ference between cost of funds occupied the top slot since 79,2459 -17.0
agency’. 7.37 per cent versus 8.02 per and yields earned on the loan October 2011 — in the quarter
DSP MF 5,457
“We are also expecting a cent at the end of September. book) and net interest margin ending March 2016.
similar relief to the exporters With the recent fall amid sig- (NIM) of many PSBs. HDFC MF's net profit was HDFC MF CLOCKED A
of articles of silver and plat- nificant recovery in crude oil RBI data says total bank- ~722 crore in 2017-18, nearly a NET PROFIT OF
inum very soon,” Agrawal prices, softening food inflation ing credit grew about 15 per third more than the ~550 crore
added. and the Reserve Bank of cent as on December 7 over a in2016-17.ICICIPrudentialMF's
~722 CRORE IN
India’s (RBI’s) bond purchase year, while deposits rose 9.5 saw a 30 per cent rise to ~625
2017-18, 31 PER
More on business-standard.com under open market operations per cent. crore over the same period. CENT HIGHER THAN
(OMOs), state-run lenders Analysts at CLSA foresee a “HDFC MF has, by and THE ~550 CRORE
CLOCKED IN THE
could recover the mark-to-
market (MTM, repricing at cur-
HIGH YIELD HIT TO BOTTOM LINE 5-10 basis point NIM expan-
sion at banks with a high cur-
large, remained immune to the
debt issues faced by the indus- LAST FISCAL YEAR
Palm jumps over rent valuation) provisioning April-September 2018 period MtM provisioning AFS as % of
rent and savings account try in recent months. That
2% as India cuts they had made for the finan- ~crore % of operating gross (Casa) base. State Bank of seems to have helped the fund
profit investments*
cial year's first half (H1, over India, Bank of Baroda and house,” said Vidya Bala, head Axis MF fell the most, at 17 per ~4,000-7,000 crore in the past
import tax April-September).
Analysts at Motilal Oswal
State Bank of India
Punjab National Bank
8,846
1,984
34.2
30.0
46.5
35.5
Punjab Nation Bank, for
instance, had a 35-45 per cent
of MF research at FundsIndia.
SBI MF is another fund
cent and seven per cent, respec-
tively. Experts largely attribute
year.
“An equity investment cul-
Malaysian palm oil futures Securities expect these enti- Bank of Baroda 1,144 18.8 40.8 Casa ratio as on end- house which has climbed one this to risk-aversion triggered ture is rising and taking a more
rose to their highest in near- ties to report healthy write- Canara Bank 652 12.6 35.6 September. This and the place, to occupy the number by the IL&FS crisis and the formal form. Most new-age
ly two weeks on the first trad- backs (recovery) of these expected healthy credit three slot. Its assets rose 4.1 per resulting hit on debt AUMs. In investors are professionals,
ing day of 2019, after the amounts. Syndicate Bank 916 81.1 38.0 growth should boost revenue. cent to ~2.64 trillion in the quar- October, for instance, investors earning a livelihood in other
world’s largest edible oil In the past few quarters, *As of September 2018; MtM: mark to market; AFS: Available for sale However, Dhaval Dalal, ter ended December. hadpulledoutmoneyparkedin industries; stock markets are
importer India announced high G-Sec yields had wors- Source: Banks chief investment officer at “SBI has seen steady liquid schemes, amid fear of simply a vehicle for their sav-
import tax cuts, amid expec- ened the pain at bad loan-rid- Edelweiss Asset Management, growth on the equity side, with contagion risk from the IL&FS ings. Given the lack of expertise,
tations of a fall in production. den PSBs. BY RBI rule, banks major investors in G-Sec. their MTM provisioning for H1 believes the recent fall in crude its flagship funds doing well issues. Debt schemes primarily resources and time, these
The benchmark palm oil must keep aside a specified In H1, this MTM provision- was ~20,673 crore. Anil Gupta, oil prices and food prices over the past few years. Beside, attract short-term institutional investors are investing through
contract for March delivery portion of their operating prof- ing dented 28 per cent of oper- the head for financial sector might not sustain for long. its large banking network and money. insurance schemes and MFs,”
on the Bursa Malaysia it on a quarterly basis for the ating profit at PSBs. With the ratings at ICRA, says there And, concerns on the govern- inflow of retail (small deposi- MFs have benefited from a goesanotebyforeignbrokerage
Derivatives Exchange was up notional loss due to an erosion December level of yields,they would be a ~3,000-3,500 crore ment’s fiscal deficit, likely end tor) money has boosted asset shift to financial assets, from Jefferies.
2.1 per cent at $523.82 a tonne in market value of the G-Secs should see a combined MTM provision write-back for every of OMO bond purchase and growth,” said Bala. physical assets like real estate The aggregate net profit in
at the close of trade, its they have, under the Available provisioning write back of 10 basis point fall in G-Sec fresh supply in the new fis- Most of the top 10 fund and gold. Inflow through FY18 for 34 fund houses grew
strongest daily gains in two for Sale segment of their around ~21,000 crore. yield sequentially. nancial year could cause some houses saw a quarterly fall in monthly Systematic Invest- 40 per cent over FY17, data from
and a half weeks. REUTERS investment book. PSBs are Ratings agency ICRA says Beside provisioning write- hardening in G-Sec yields. AUM. Assets of DSP MF and ment Plans have averaged Value Research shows.

> TODAY’S PICKS ONGC says no demand from

govt to reconsider OVL listing
State-owned Oil and Natural listing of OVL to the govern-
Gas Corp (ONGC) on ment. After that “we have not
Wednesday said the govern- received any request to recon-
ment has not yet asked it to sider (listing of OVL)”, he told
reconsider listing its overseas reporters here. The company
arm ONGC Videsh on the will reconsider it if and when
Nifty Bank Nifty Infosys Tata Steel Maruti bourses. such a request is made, he said.
Current:110,792 (fut:110,825) Current:27,174 (futures:227,275) Current price: ~669 Currentprice:~494 Current price: ~7,268 The board of ONGC had on Sources said the company
NA
Target:N Target: NA Target price: ~680 Target price: ~486 Target price: ~7,150 December 21 considered a gov- board on December 21 deliber-
Stop-long positions at 10,745. Stop-short Stop-long positions at 27,125. Stop-short Keepastopat664andgolong.Add Keep a stop at 498 and go short. Keep a stop at 7320 and go short . ernment demand to list its ated on the demand from the
positions at 10,905. Big moves could go till positions at 27,425. Big moves could go tothepositionbetween676-678. Add to the position between 488-490. Add to the position between profitable overseas investment Department of Investment and
10,950, 10,700. A long 10700p (137), short till 27,650, 26,875. Trend could stay Bookprofitsat680. Book profits at 486. 7170-7200. Book profits at 7150. arm but feels that it was not the Public Asset Management
10600p (105) could gain 15-20 if the negative. right to go for an initial public (DIPAM) for the listing of OVL
futures drops below 10,725. offering. ONGC Chairman and but felt that the market condi-
Managing Director Shashi tions are not right for an oil and
Shanker said the company has gasexplorationandproduction
Target prices, projected movements in terms of next session, unless otherwise stated DEVANGSHU DATTA communicated its views on the company to list. PTI

COMMODITIES1
>

Bullish phase in milk Surging prices to add flavour

prices after long lull to tea growers prospects
DILIP KUMAR JHA
Mumbai, 2 January AVISHEK RAKSHIT
Kolkata, 2 January

D
airy companies are
planning to raise milk In face of an expected 50 million kg
prices by ~2-4 a litre by (mn kg) shortfall of tea, producing
the end of this month, point- companies are looking at a good
ing to a rise in cost of produc- opening in this year’s auctions.
> PRICE CARD tion, rising demand and deplet- After a three-month hiatus, the
ing inventory on reduced first flush (first plucking) of tea starts
As on Jan 2,’19 International
------------------------------------------------------------------------------
Domestic
------------------------------------------------------------------------------
supply from Maharashtra, to hit the auction centres in early
Price %Chg# Price %Chg# Tamil Nadu and Gujarat.
Prices of milk and deriva-
MILK PRODUCTION March. During the first flush, 120-
130 mn kg is produced in north India
METALS ($/tonne)
tives such as cheese, butter, (the entire country apart from the
Aluminium 1,869.5 -10.1 2,166.2 -4.9 curd and skimmed milk pow- southern region). AVERAGE AUCTION PRICES IN NORTH INDIA
Copper 5,965.0 -4.9 6,569.8 -1.4 der (SMP) were subdued for two According to the Indian Tea Kolkata Guwahati Siliguri (In~perkg)
Zinc 2,510.5 -6.8 2,893.0 -8.7 years, on a supply surplus. Association (ITA), the apex body for
147.55

August 2018 had seen a fall in north Indian tea, production was
144.23
143.55

Gold ($/ounce) 1,284.4* 6.7 1,410.0 8.3

160.37

140.67
159.12

their prices. However, the price down by 13 mn kg during January-

137.02
155.64

154.33

Silver ($/ounce) 15.4* 5.0 17.1 5.8

151.4

of SMP, for instance, has risen October last year; November-

148.93
146.49

ENERGY from ~125 a kg in that month to Decemberisalsoexpectedtoregister

Crude Oil ($/bbl) 52.4* -38.1 52.3 -37.9 a current ~200-210 a kg. Ghee, another 12 mn kg dip, owing to cli-
cheese and butter have moved matic changes in Assam and north
Natural Gas ($/mmBtu) 3.0* -5.7 3.0 -4.17 proportionately up, without a Bengal. Coupled with this, the Tea
AGRI COMMODITIES ($/tonne) price increase in milk. Board’s crackdown on ‘bad tea’ (by December Week 1 December Week 2 December Week 3 December Week 4
Source: Department of Animal Husbandry, Dairying & Fisheries, Ministry of Agriculture, GoI
“Milk's real prices had fallen not allowing plucking during win- Source: Tea Board of India
Wheat 218.3 -4.5 299.1 7.0
sharply. Farmers were realising months. Amitabha Ray, the MD at ter) is expected to result in another
Sugar 332.1* -0.4 447.8 -1.4 less than their cost of produc- Ghee's price increase has Schreiber Dynamix Dairies. shortfall of 25-30 mn kg. that none can be produced during “This is not only going to
Palm oil 497.5 -9.1 847.1 -5.7 tion, resulting in a halt of fresh taken it up to ~310-325 a kg and The government of “These factors together will lead the winter season. And, for small improve the quality when plucking
Rubber 1,566.0* 12.0 1,763.6 -0.2 investment in animal hus- butter to ~235 a kg. Buffalo milk Maharashtra is also offering a to an expected shortfall of 50-60 mn growers to stop plucking during the resumes but will also help flush out
Cotton 1,599.5 -5.3 1,765.5 -0.2 bandry. So, milk production got prices have risen by up by ~7 a ~5 a litre incentive to dairy com- kg when auction resumes,” said winter. No estate factory or bought bad tea from the market,” said Atul
impacted, resulting in lower litre, to ~39 a litre for farmers; panies until January for pro- Vivek Goenka, chairman at ITA. leaf factory (which often processes Asthana, managing director at the
* As on Jan 2, 1800 hrs IST, # Change Over 3 Months
Conversion rate 1 USD = 70.2 & 1 Ounce = 31.1032316 grams. supply this season. With onset cow milk has gone up by ~3 to ducing export-oriented milk Sources among brokers say con- the harvest from small growers) can Camellia Plc-owned Goodricke
Notes: of the wedding season, demand ~28 a litre (from ~21 a litre last derivatives. Apart from that, the sumption is also expected to makeanyformofteaduringthewin- Group. “We cannot say by how
1) International metals, Indian basket crude, Malaysia Palm oil is bound to increase. Hence, we August); the Maharashtra gov- Centre has offered a 20 per cent improve,primarilyledbyalongwin- ter period. Although the larger much prices can improve,” said A K
and Wheat LIFFE pertains to previous days price.
2) International metal are LME Spot prices and domestic metal
will see how demand pans out ernment had since ordered that export subsidy for milk deriva- ter,thegeneralelectionandtheArdh estates usually close down during Ray, chairman at the Tea Board.
are Mumbai local spot prices except for Steel. before any price increase. But, the minimum sale price be ~25 tives, including SMP. However, Kumbh Mela. “It is usually noticed winter, a small section of growers The Board has threatened puni-
3) International Crude oil is Brent crude and Domestic Crude oil
is Indian basket.
prices would certainly go up a litre. global prices of SMP, cheese and that when there is a prolonged con- from the Assam-Bengal belt tradi- tive steps under the Tea
4) International Natural gas is Nymex near month future & this season,” said R S Sodhi, “Animal husbandry in butter are subdued. gregation like some fair or meetings tionally continued to produce. (Marketing) Control Order, 2003
domestic natural gas is MCX near month futures.
5) International Wheat and White sugar are LIFF E future prices
managing director (MD) at Maharashtra has become diffi- "Milk prices would rise next or rallies, tea consumption increas- Unlike South India, where produc- against those caught harvesting or
of near month contract. Gujarat Cooperative Milk cult due to lower water avail- season, with reduced supply es. This year, we have two big events tion is perennial, north Indian gar- processing tea during the winter.
6) International Maize is MATIF near month future, Rubber is Marketing Federation ability, following drought in and lower investment in ani- to drive higher demand — the 2019 dens traditionally observe closure The threat has begun working. In
Tokyo-TOCOM near month future and Palm oil is Malaysia FOB
spot price. (GCMMF), producer of the nearly half the state’s villages. mal husbandry over the past Lok Sabha election and the 55-day during winter, so that the bushes are Kolkata, the largest auction centre
7) Domestic Wheat is NCDEX future price of near month contract, Amul brand of dairy products Consequently, milk supply has two years,” said Devendra Ardh Kumbh,” a leading broker said. rested. The plucking during winter is in the country, average prices
Palm oil & Rubber are NCDEX spot prices.
8) Domestic Coffee is Karnataka robusta and Sugar is M30 (the country's largest). been impacted. We cannot Shah, chairman, Parag Milk After consultation with the of inferior quality tea, which is held towards the end of December were
Mumbai local spot price. Both dry and wet fodder forecast a date but prices would Foods, producer of the industry, the Tea Board has man- to damage the bushes and also up by nearly five per cent. Lower
9) International cotton is Cotton no.2-NYBOT near month future
& domestic cotton is MCX Future prices near month futures. prices have risen by up to 20 certainly go up, latest by the Gowardhan brand of milk and dated annual closure of gardens in depress the price during auctions. grade prices are up 10-15 per cent in
Source: Bloomberg Compiled by BS Research Bureau per cent over the past four first week of February,” said its derivatives. the Assam-Bengal-Cachar region, so Hence the ban. the Assam-Bengal belt.
12 WORLD
>
MUMBAI | THURSDAY, 3 JANUARY 2019

IN BRIEF
Tesla shares tumble 9% as Divided US govt raises Taiwan must
be unified with
company misses delivery
Shares in Tesla dropped as much as 9 per
cent on Wednesday after the electric car
maker cut US prices for all its vehicles to
questions on control
SHERYL GAY STOLBERG & BORDER
mainland: Xi
offset lower green tax credits and fell short JULIE HIRSCHFELD DAVIS BLOOMBERG
on deliveries of its mass-market Model 3 Washington, 2 January
SECURITY AND Beijing, 2 January
sedans in the fourth quarter. The price cut THE WALL
“naturally begs the question: If demand “THING” AND
A
merica will get its first Chinese President Xi Jinping
for Tesla vehicles is as strong as Tesla has taste of divided gov- SHUTDOWN IS suggested that mainland
indicated in the past, why cut price?” Bank ernment under China and Taiwan enter into
of America analyst John Murphy wrote in a President Donald Trump this NOT WHERE “in-depth democratic con-
client note. “In our view, this move could suggest that what many week when a Democratic NANCY PELOSI sultations” and work toward
bulls assume to be a substantial backlog ... for Tesla may be less House tries to wrest control of WANTED TO unification, in the clearest
robust.” Tesla turned a profit for the third quarter but is unprofi- the political agenda from sign yet that he wants to set-
table for the first nine months of 2018, and cash flow remains a Trump, who appears deter-
START HER tle the 70-year dispute during
concern for investors. REUTERS< mined to keep the focus on TENURE AS his tenure.
border security, immigration SPEAKER! LET’S “China must and will be
and his “big, beautiful” wall. MAKE A DEAL? united, which is an inevitable
China's Didi launches US approves Google’s After the midterm elections
DONALD TRUMP
requirement for the historical Chinese President Xi Jinping
ushered in the most diverse rejuvenation of the Chinese during an event to celebrate
crowdfunding, radar-based hand freshman class in history, US President, in a tweet nation in the new era,” Xi told the 40th anniversary of the
credit services motion sensor House Democrats intend to a gathering in Beijing to mark Message to Compatriots in
put a spotlight on the issues A US Custom and Border Protection (CBP) agent points his weapon at migrants as they prepare the 40th anniversary of a Taiwan at the Great Hall of
China's Didi Chuxing has Alphabet ‘s Google unit won that worked well for them dur- to cross the border fence illegally from Mexico into the US, in Tijuana, Mexico, landmark Beijing overture to the People in Beijing PHOTO: PTI
launched a suite of financial approval from US regulators to ing the campaign: diminishing Taipei after the US and China
products, including crowdfun- deploy a radar-based motion the influence of the wealthy established relations. The two issuing a firm deadline, his
ding and lending, as it continues
to diversify outside the
sensing device known as
Project Soli. The Federal
and connected, expanding vot-
ing rights, lowering prescrip-
Tear gas fired at migrants White House rejects Bill of sides have been ruled sepa-
rately since Chiang Kai-shek
remarks went further than
his 2013 statement saying the
ride-hailing business following Communications Commission tion drug costs and passing a trying illegal crossing Democrats to end shutdown moved his Nationalist gov- political impasse between
a year of safety scandals. The that it would grant Google a bipartisan infrastructure bill. ernment across the Taiwan the two sides “cannot be
move comes on the heels of a waiver to operate the Soli Trump, on the defensive US border agents launched tear gas into The White House on Wednesday rejected a Strait during the Chinese passed on from generation to
company-wide reorganisation sensors at higher power levels and presiding over a federal Mexico early on Tuesday to deter a group of proposal put forward by the Opposition civil war. generation.”
announced in December, which than currently allowed. The FCC government that remains par- migrants that one official called “a violent Democratic party to end the protracted partial Xi also sent a warning to Since coming to power six
was aimed at improving safety said the decision “will serve the tially closed, is trying to stomp mob” from crossing over from Tijuana, accor- government shutdown, asserting that any plan Taiwan independence advo- years ago, Xi has employed
on its platform and operating public interest by providing for on that message. On Tuesday, ding to a Reuters witness and the US without a provision for funding US President’s cates, who include supporters both incentives and pressure
efficiency. The new products innovative device control as the government shutdown government. Clouds of the noxious gas could long-promised border wall is a “non-starter”. of Taiwanese President Tsai to steer Taiwan toward unifi-
were tested in 10 cities and have features using touchless hand was in its 11th day, Trump be seen wafting up from around the fence at The over 10-day long partial government Ing-wen. cation. In 2015, he held an
now been introduced.REUTERS< gesture technology.” REUTERS< invited congressional leaders the border. One migrant picked up a canister shutdown starting on December 22 has affected “It’s a legal fact that both unprecedented leader-to-
of both parties to a briefing on and threw it back into US territory. 800,000 federal employees, who have either sides of the strait belong to leader meeting with then-
border security Wednesday US officials said the group had attacked been furloughed or are working without pay. one China, and cannot be Taiwanese President Ma
Kim: Ready to meet Qatar Airways buys afternoon. Sarah Huckabee agents with projectiles but a Reuters witness Trump cancelled his planned trip to his Mar-a- changed by anyone or any Ying-jeou. After the island
Sanders, the White House did not see any migrants throwing rocks at Lago resort in Florida to spend time with family force,” Xi said. While the voted in 2016 to elect Tsai —
Trump ‘anytime’, 5% of China press secretary, said on US agents. REUTERS< for Christmas and New Year. REUTERS< president said “Chinese don’t of the pro-independence
warns of ‘new path’ Southern Airlines Tuesday night that Trump beat Chinese,” he noted that Democratic Progressive Party
would attend. the mainland was “not com- — he cut off ties and
North Korean leader Kim Qatar Airways has acquired a 5 It would be the first visit by he would be “proud to shut Wall ‘thing’ and Shutdown is in mind was not clear. While mitted to renouncing the use launched an effort to isolate
Jong-Un said he was ready to meet per cent stake in China Southe- Democratic leaders to the down the government for bor- not where Nancy Pelosi want- Pelosi has repeatedly signaled of force.” The speech closely her government.
Donald Trump again to achieve rn Airlines, the state-owned White House since December der security.” Trump appeared ed to start her tenure as she would like to find a com- tied the Taiwan issue to Xi’s “The difference in sys-
their common goal of Gulf carrier said on Wednesday, 11, when the president told to make a gesture of peace Speaker!” he said Tuesday on promise that would allow the central pledge to make China tems is not an obstacle to
denuclearising the Korean in a move to gain access to the Representative Nancy Pelosi ahead of Wednesday’s meet. Twitter. “Let’s make a deal?” government to reopen. a global power by 2050. reunification or an excuse for
Peninsula, but warned he may fast-growing Chinese market. and Senator Chuck Schumer “Border Security and the Just what deal Trump had ©2018 The New York Times Service While he stopped short of separation,” Xi said.
have to take an alternative path if US Qatar Airways also owns a 20
sanctions and pressure against the per cent stake in British
country continued. He said Airways-parent International
denuclearisation was his “firm will”
and North Korea had “declared at
home and abroad that we would
Consolidated Airlines Group , 10
per cent of South America's
LATAM Airlines Group SA , 49 per
China to give advanced warship to Pak UK factories build up stockpiles
neither make and test nuclear
weapons any longer nor use and
cent of Italy's Meridiana and
9.99 per cent stake in Hong
PRESS TRUST OF INDIA
Beijing, 2 January
structed at its Hudong-Zhonghua
shipyard in Shanghai.
before Brexit, boosting PMI
proliferate them.” REUTERS< Kong's Cathay Pacific. REUTERS< China, an “all-weather ally” of REUTERS for Britain’s stuttering economy and
China is building the first of four Islamabad, is the largest supplier of London, 2 January was caused in large part by manufac-
“most advanced” naval warships for weapon system to Pakistan. Both the turers stockpiling inputs and finished
Journalist arrested in Bangladesh for 'false' its “all-weather ally” Pakistan as part countries also jointly manufacture British factories ramped up their goods, both of which were near record
reporting on voting irregularities of a major bilateral arms deal to JF-Thunder a single engine multi- stockpiling in December as they pre- highs. “Any positive impact on the PMI
ensure among other things “balance role combat aircraft. pared for possible border delays when is likely to be short-lived, however, as
A journalist working with a prominent media house in Bangladesh of power” in the strategic Indian The ship’s class is Type 054AP, Britain leaves the European Union in any gains in the near-term are reversed
was arrested for allegedly publishing "false" information about Ocean, state media reported. which means it is based on the Type less than three months’ time, a survey later in 2019 when safety stocks are
voting irregularities in the just-concluded parliamentary elections, Equipped with modern detec- 054A of the People’s Liberation showed on Wednesday. eroded or become obsolete,” IHS
according to a media report. Hedait Hossain Molla, associated with tion and weapon systems, it will be Army Navy, the report quoted the The IHS Markit/CIPS Markit director Rob Dobson said.
Bangla Tribune and Probaho, reported that in Khulna 1 capable of anti-ship, anti-submarine Pakistani Navy as saying. The Manufacturing Purchasing Managers' Many manufacturers are building
constituency, 22,419 more ballots were cast than the number of and air-defence operations, China Employees work on a ship at the Pakistani Navy previously said four Index (PMI) rose to 54.2 from an up inventories to protect themselves
registered voters, the Dhaka Tribune quoted the police as saying. Daily quoted state-owned defence Shanhaiguan Shipbuilding such ships had been ordered, upwardly revised 53.6 in November, against the risks of customs delays at
He was arrested on Tuesday in Khulna under the Digital Security Act contractor China State Shipbuilding Industry in Shanhaiguan, north according to the report. the highest reading in six months and the border after March 29 when Britain
following an FIR by Khulna's Assistant Returning Officer Debashish Corporation (CSSC) as saying. China’s Hebei province FILE PHOTO It will also support the Pakistani stronger than all forecasts in a Reuters is due to leave the EU. Prime Minister
Chowdhury, senior police officer Mahbubur Rahman said. The FIR The under-construction ship is a Navy's initiative of securing sea poll of economists. Theresa May is struggling to overcome
also named Rashedul Islam, another journalist associated with version of the Chinese Navy's most said. The CSSC did not specify the lanes for international shipping by Markit said the improvement did deep opposition to her Brexit plan in
local daily Manabzamin. He was yet to be arrested. PTI< advanced guided missile frigate, it ship's type but said it is being con- patrolling distant waters. not herald a big change in the outlook her own Conservative Party.

STOCKS
> STOCK
IN THE > Bank of Baroda > Kellton Tech Solutions > Triveni Turbine

NEWS Top loser amongst S&P

BSE Bankex index
Top gainer amongst
S&P BSE SmallCap
Trading volume jumps
more than 47 times OF THE DAY
index SMS Lifesciences: Stock hit
~123.30 PREVIOUS CLOSE ~41.50 PREVIOUS CLOSE ~109.70 PREVIOUS CLOSE new all-time high of Rs
~119.40 CLOSE ~48.95 CLOSE ~116.90 CLOSE 590.40, up 66 per cent since
q 3.16% DOWN p 17.95% UP p 6.56% UP 3-month low
> .

NIFTY 50 ADVANCES/DECLINE
Company Close (~) % Wt PE Company Close (~) % Wt PE F&0 SNAPSHOT DAY’S TOP GAINERS DAY’S TOP LOSERS
2 Jan’19 Chg (%) Con Std 2 Jan’19 Chg (%) Con Std Futures Cash Premium Futures Cash Discount
Adani Ports 381.3 -2.0 0.7 24.5 34.7 IOC 137.3 -0.3 1.3 5.9 5.8 price price (%) price price (%) Company Day’s high Close % chg* 3mth high 52 wk high Company Day’s low Close % chg* 3mth low 52 wk low
Asian Paints 1383.3 0.9 1.4 62.4 64.9 ITC 280.6 -0.7 7.5 29.9 29.1 MOST BULLISH MOST BEARISH Indiabulls Vent 416.7 403.5 2.3 510.0 820.0 Eicher Motor 21000.0 21164.1 -8.7 20301.1 20301.1
Axis Bank 620.1 -1.2 2.6 349.6 - JSW Steel 288.7 -5.0 0.9 7.7 8.7 BEML 929.0 922.7 2.1 946.0 1602.9 Jet Airways 261.0 263.8 -6.2 164.4 163.0
Suzlon Energy 5.4 5.4 1.9 Jet Airways 252.6 263.6 -4.1
Bajaj Auto 2692.0 -1.3 0.9 17.4 18.1 Kotak Mah Bank 1240.6 -0.8 3.6 35.1 54.5 Bharat Elctn 90.1 89.7 2.1 99.3 185.2 TVS Motor 530.2 535.0 -5.3 478.7 478.7
Adani Power 51.2 50.6 1.2 V Guard Inds 219.1 222.0 -1.3
Bajaj Fin 2614.1 -1.6 1.5 56.5 46.6 L&T 1425.5 -1.1 4.4 23.1 31.6 Federal Bank 95.7 94.9 2.0 96.3 116.8 Future Retail 459.4 469.4 -5.3 423.4 423.4
Nestle India 11119.1 11035.4 0.8 HPCL 253.1 256.6 -1.3
Bajaj Finsrv 6384.0 -2.1 0.9 29.3 318.3 Mah & Mah 741.7 -4.1 1.6 11.6 17.9 Sun Pharma 441.2 440.3 1.7 640.5 678.8 JSW Steel 287.0 288.7 -4.9 286.1 266.3
SREI Infra Fin 34.8 34.6 0.7 NHPC 25.4 25.7 -1.2
Bharti Airtel 312.7 -2.1 0.9 73.2 - Maruti Suzuki 7267.9 -2.8 2.1 27.9 27.8 Balram Chini 105.0 104.5 1.6 119.6 144.9 Vedanta 192.5 193.1 -4.5 190.1 190.1
Bajaj Finsrv 6428.1 6384.0 0.7 Oil India 170.4 172.4 -1.1
Bharti Infratel 264.3 0.8 0.5 20.1 19.0 NTPC 147.0 -1.1 1.0 11.5 11.8 HDFC Std Life 393.0 390.5 1.3 407.9 547.3 DLF 172.3 172.9 -4.2 141.2 141.2
BPCL 358.0 -2.5 0.8 7.9 9.3 ONGC 147.1 -1.0 1.3 7.2 7.4 NMDC 99.5 96.9 1.2 118.0 162.6 Tata Steel 491.6 493.9 -4.2 486.9 486.9
BSE NSE
Cipla
Coal India
514.6
236.7
-1.6
-2.0
0.6
0.7
30.1 25.9
13.2 15.0
Power Grid 195.3 -2.4 1.0 12.5 11.9 Index Stock Index Stock PUT-CALL RATIO TCS
Indraprst Gs
1933.0
276.0
1923.2
274.5
1.1
1.0
2253.9
297.1
2273.0
336.3
Mah & Mah
Reliance Power
736.2
27.6
741.5
27.7
-4.1
-4.0
695.2
23.6
695.2
23.6
Reliance Ind 1106.4 -1.3 8.3 18.5 20.1
Dr Reddys 2601.1 -0.2 0.7 27.5 37.6 FUTURE (Open Interest in Mn) Put Call PC Ratio Britannia 3130.0 3115.9 0.9 3245.1 3472.1 SREI Infra Fin 34.4 34.6 -3.9 25.4 25.4
SBI 293.9 -1.9 2.4 - -
Eicher Motor 21162.3 -8.8 0.6 27.4 32.0 Contracts - - 371636 809483 Dish TV 39.4 38.3 0.9 59.5 87.0 Reliance Cap 220.1 221.8 -3.8 195.5 195.5
Sun Pharma 440.1 1.5 1.1 36.0 - Market 350.6 637.1 0.6
GAIL 350.3 -3.3 0.8 16.4 14.3 Open Int.(000) - - 26521 4487473 Asian Paints 1386.8 1381.6 0.7 1444.0 1488.6 Hindalco 213.8 214.4 -3.8 205.8 192.5
Tata Motors 168.6 -2.8 0.7 94.0 49.6
Grasim Ind 815.5 -2.2 0.7 33.8 177.1 Shares(In Mn) - - 18.4 1836.1 Top 5 PC Ratio Bottom 5 PC Ratio Infosys 673.7 669.3 0.7 752.0 755.0 Allahabad Bk 44.9 45.0 -3.6 33.3 33.3
Tata Steel 493.7 -4.3 0.8 2.7 7.0
HCL Techno 946.4 -1.4 1.2 14.2 16.6 Value(~ crore) - - 25627 48859
TCS 1923.3 1.1 4.4 25.1 26.2 V Guard Inds 2.5 Godfrey Ph 0.1
HDFC 1980.7 -1.4 7.5 21.0 25.9 OPTIONS * Ranked on the basis of percentage gain/loss on previous close
Tech Mahindra 712.1 -1.0 1.0 17.0 17.1 SREI Infra Fin 1.3 SKS Microfin 0.1
HDFC Bank 2128.5 -0.9 10.0 31.3 30.4 Contracts - - 17922808 549802
Titan Company 932.2 0.4 0.9 75.1 66.0 Kajaria Cer 1.2 Torrent Pwer 0.1
Hero MotoCorp
Hindalco
3046.6
214.6
-2.6
-3.7
0.9
0.7
16.3 16.6
7.9 32.6 UltraTech 4006.1 -0.1 0.9 57.6 57.9
Open Int.(000)
Shares(In Mn)
-
-
-
-
96795
459.7
890924
1064.7
Nestle India 1.2 Enginers Ind 0.1 MOST TRADED TOP M-CAP TRENDS
UPL 756.5 0.4 0.6 18.4 74.2 Bharat Forge 1.1 Manapp Finance 0.1
HPCL 256.6 -0.1 0.9 5.4 6.0 Value(~ Mn) - - 1030708 34358 Value Volume Rank Company Mcap (~ cr) Company % change Company % change
HUL 1784.6 -0.9 2.8 73.9 67.4 Vedanta 193.2 -4.4 0.8 5.9 10.4 BSE+NSE BSE+NSE
Wipro 325.6 -0.3 0.8 19.1 20.8 1 TCS 721642.8 BS200 Athena Global T 31.4
ICICI Bank 364.6 0.2 5.2 30.4 67.9 (~ crore) (Mn shrs)
Indiabulls Hous 842.3 -0.3 0.6 8.4 9.1 YES Bank 184.7 0.2 0.8 10.1 9.5 ACTIVE CALLS ACTIVE PUTS Eicher Motor 1095.3 0.5
2
3
Reliance Ind
HDFC Bank
701234.9
578152.1 UP 7 DAYS Oceanaa Biotek 29.1
IndusInd Bank 1576.6 -1.2 1.8 - 24.7 Zee Enter 470.3 -2.1 0.6 35.7 26.1 Saven Techno 27.2
10792.5 â-1.1 100.0
DOWN
Infosys 669.1 0.6 5.6 17.7 17.7 Nifty 50 19.6 21.7 MARKET OVERVIEW Expiry Strike Traded Open % Chg
Date Price Qty Int (OI)
Expiry Strike Traded Open % Chg
Date Price Qty Int (OI)
Mah & Mah
Reliance Ind
852.8
831.4
11.4
7.5
4
5
HUL
ITC
386164.6
343525.5 Ashok Leyland -4.9 DOWN 7 DAYS
INDEX PE Shrs Trds 1 Yr Index Index 6 HDFC 340279.2 UP 3 DAYS Ocean Agro -22.2
AGGREGATES Axis Bank 817.8 13.1
S&P BSE SENSEX STOCKS Sensex
C/S
21.1/23.2 15.2
Mn ‘000
171
Adv Dec
6 25
return
6.1
Nifty Bank
Nifty Bank
03/01/19
03/01/19
27500
27400
28.2
26.4
1.6 63.2
1.0 131.0
Nifty Bank
Nifty Bank
03/01/19
03/01/19
27000
27100
27.4
21.7
1.2 -0.4
0.5 -28.9
SBI 812.6 27.3
7
8
Infosys
SBI
292393.1
262249.4
Indiabulls Vent
Balram Chini
6.1
4.7
AJIL
Pitti Engg
-13.1
-12.4
Asian Paints 1381.6 0.7 1.6 62.3 64.8 L&T 1426.4 -1.1 5.2 23.1 31.6 Nifty 50 19.6/21.7 309.7 3731 9 41 3.4 Nifty Bank 03/01/19 27300 22.4 1.0 163.7 Nifty Bank 03/01/19 27200 21.2 0.5 -25.8 Maruti Suzuki 697.1 0.9 9 Kotak Mah Bank 236681.8 Sun Pharma 3.7 HOV Services -6.2
Axis Bank 618.9 -1.4 3.1 348.9 - Mah & Mah 741.5 -4.1 1.9 11.6 17.9 C = Consolidated; S = Standalone Nifty Bank 03/01/19 27600 21.2 0.8 74.8 Nifty Bank 03/01/19 27300 15.8 0.3 -35.1 ICICI Bank 691.8 19.0 10 ICICI Bank 234665.1 Indraprst Gs 3.4 Nilkamal -6.1
Bajaj Auto 2689.4 -1.3 1.0 17.3 18.1 Maruti Suzuki 7272.5 -2.7 2.5 27.9 27.8 Nifty Bank 03/01/19 27700 16.1 0.8 20.9 Nifty Bank 03/01/19 26900 15.0 0.6 10.1 YES Bank 657.5 35.5 11 Maruti Suzuki 219686.2
Cash Derivatives NCC 3.4 UP 3 DAYS
Bajaj Fin 2616.5 -1.5 1.8 56.5 46.6 NTPC 146.6 -1.1 1.2 11.5 11.7 TURNOVER BSE NSE BSE NSE Stock Stock Tata Steel 635.8 12.7 12 L&T 200009.8 ICICI Lombard 2.5 Kellton Tech So 63.2
Bharti Airtel 312.8 -2.1 1.1 73.2 - ONGC 147.6 -0.9 1.6 7.3 7.5 Ashok Leyland 31/01/19 110 12.9 4.3 43.4 Ashok Leyland 31/01/19 100 10.7 2.1 27.6 13 ONGC 189418.6
Infosys 525.0 7.8 Infosys 1.8
Coal India 237.0 -1.7 0.8 13.2 15.0 Power Grid 195.4 -2.3 1.2 12.5 11.9 :Value(In ~ crore) 2244 28230 - 1139552 SAIL 31/01/19 60 11.6 6.2 5.7 SBI 31/01/19 290 7.4 1.7 -0.7 Palred Technolo 55.4
HDFC Bank 453.4 2.1 14 Axis Bank 159051.1 DOWN
HCL Techno 945.9 -1.7 1.4 14.2 16.6 Reliance Ind 1106.3 -1.3 9.8 18.5 20.1 Shares(In Mn) 177.9 1287.1 - 3378.8 SBI 31/01/19 300 11.1 3.6 25.7 Ashok Leyland 31/01/19 95 7.0 1.9 32.5 15 Bajaj Fin 151220.6 Weizmann Ind 28.2
HDFC 1979.0 -1.5 8.8 21.0 25.8 SBI 293.9 -1.8 2.9 - - Trades(000) 1118 9451 - 7672 Sun Pharma 453.3 10.4 Future Retail -8.0
Ashok Leyland 31/01/19 115 10.6 2.3 16.9 ICICI Bank 31/01/19 360 6.5 2.9 85.9 16 Coal India 147115.6 Atul Auto 24.0
HDFC Bank 2126.0 -1.0 11.8 31.2 30.4 Sun Pharma 440.3 1.7 1.2 36.0 - BEML 437.7 4.8 PC Jeweller -5.7
MARKET-CAP (~ CRORE) Traded Total SBI 31/01/19 310 9.7 3.3 50.3 Ashok Leyland 31/01/19 90 6.4 2.4 104.4 17 Wipro 147107.8 Shervani Ind 23.7
Hero MotoCorp 3046.1 -2.6 1.0 16.3 16.6 Tata Mot-DVR 90.1 -3.2 0.1 - - TCS 431.8 2.2 Avenue Supermar -5.7
18á IOC 133246.0 5Paisa Capital 21.2
HUL 1784.0 -1.1 3.3 73.9 67.4 Tata Motors 168.6 -2.9 0.8 94.0 49.6 BSE 14,309,302 14,435,124 Ashok Leyland 428.7 42.7 19á Asian Paints 132518.3 Adani Enter -4.3
AKME Star Hou F 16.5
ICICI Bank 364.4 0.2 6.1 30.4 67.8 Tata Steel 493.9 -4.2 1.0 2.7 7.0 NSE 14,205,056 14,265,063 Dabur India -4.1
IndusInd Bank 1577.4 -1.1 2.1 - 24.7 TCS 1923.2 1.1 5.2 25.1 26.2 Derivatives 10,860,922 10,860,922 SPURT IN VOLUMES HDFC
Vedanta
415.0
396.4
2.1
20.3
20â
21
HCL Techno
Bharti Airtel
131719.1
125038.7 Can Fin Home -3.9
DOWN 3 DAYS
Infosys 669.3 0.7 6.6 17.7 17.7 Vedanta 193.1 -4.5 0.9 5.9 10.4 V Guard Inds -3.8 CIFL -14.2
22 NTPC 120878.4
ITC 280.5 -0.8 8.9 29.9 29.1 YES Bank 184.7 0.2 0.9 10.1 9.5 TRADING ACTIVITY Company Days
Volume
2-week Avg
Volume
Change Close
price
*Price
%chg
BPCL 372.6 10.5 Arrow green -14.2
35891.5 â-1.0 100.0
23 Hind Zinc 115562.0 Others
Jubilant Fd 369.0 2.9 Mukesh Babu -14.2
Kotak Mah Bank 1240.9 -0.8 4.3 35.1 54.5 BSE SENSEX 21.1 23.2 (~ crore) FIIs MF 24 UltraTech 109850.5 UP 7 DAYS
Equity Debt Equity Debt
AMJLAND 319258.0 5715.6 5485.7 24.4 19.3 Bajaj Fin 368.4 1.4
C = Consolidated; S = Standalone 25 Nestle India 106457.8 GTC 39.9 Olympic Oil -14.1
Net Net Net Net Triveni Turbine 6355834.0 149454.5 4152.7 116.9 6.6 Indiabulls Hous 367.5 4.3 26á Sun Pharma 105641.2 Inani Marble 38.6 Trejhara Sol. -14.1
On 01 Jan 472 -562 529 10246 Kohinoor Fd 2408726.0 60913.3 3854.4 37.7 14.4 Jet Airways 338.1 12.6 27â Power Grid 102225.3 A Infra -14.1
WORLD INDICES On 31 Dec -1002 1204 636 -4359 Tube Inv of Ind 1686830.0 67364.5 2404.0 353.0 1.0 Bank of Baroda 334.8 27.6 28 Bajaj Finsrv 101702.4
Interactive Fin
SayajI Inds
37.7
32.5 Sujala Trading -14.1
On 28 Dec -230 -364 1391 6098 SBI-ETF Nifty-B 271754.0 11033.5 2363.0 274.7 -0.6 Escorts 325.5 4.5 29 Avenue Supermar 97515.6
Indices Close % Chg* Indices Close % Chg*
On 27 Dec 1577 -164 -1152 4387 Arrow Text 133509.0 6319.7 2012.6 22.1 -6.5 30á IndusInd Bank 94972.1 (T+2) cycleStocks which rose/fell continuously
L&T 307.6 2.2
Americas (Jan 01,19) Asia/Pacific (Jan 02,19) On 26 Dec -144 -47 454 3083 D-Link India 511072.0 24832.4 1958.1 78.9 9.0
Dow Jones (Dec 31) 23327.5 1.2 Stock Exchange of Thai 1565.9 0.1 Jan till date 472 -562 529 10246 Patspin I 132027.0 6556.5 1913.7 12.2 1.3
2019 till date 472 -562 529 10246
Nasdaq Composite (Dec 31) 6635.3 0.8 Jakarta Composite 6181.2 -0.2 Rupa & Co 900619.0 52938.6 1601.3 349.8 0.1
BOARD MEETINGS INTRA-DAY
S&P/ TSX Composite (Dec 31) 14322.9 0.7 Straits Times 3038.9 -1.0 FIIS IN DERIVATIVES Carborundm 594450.0 42096.8 1312.1 360.4 0.0
Quarterly Results Goa Carbon HDFC AMC Kir'skar Bro
Europe/Africa (Jan 01,19) Shanghai Se Comp 2465.3 -1.2
DAX (Dec 28) 10507.6 -0.5 Kuala Lumpur Comp 1668.1 -1.3
(~crore) Index
NET
Stock
Net
Index
Fut OI
Index
Opt OI
Stock
OI 52 WEEK NEW HIGHS/LOWS JANUARY 03
Group B
Group X
Tayo Rolls
Group B
Autom Stamp
Rane Eng Val
Swaraj Engin
FTSE 100 (Dec 31) 6664.5 -1.0 Kospi 2010.0 -1.5 On 01 Jan -73 -11 0.3 0.5 1.3 Company Price Company Price Company Price Company Price GM Breweries JANUARY 11 JANUARY 22 Group XT
IBEX 35 (Dec 31) 8398.4 -1.7 Taiwan Taiex 9554.1 -1.8 On 31 Dec 2243 75 0.3 0.5 1.3 Supreme Infr BS 200 BS 200 Kartik Inv
HIGH Relicab Cable . . . . . . . . . 43.0 Shivansh Fin . . . . . . . . . . 2.5 *Gateway Dist . . . . . . . 121.1 Group X Infosys HDFC Std Life JANUARY 28
CAC 40 (Dec 31) 4638.4 -2.0 Volatility (Jan 01,19) On 28 Dec 3227 1120 0.3 0.5 1.3 *Pradhin . . . . . . . . . . . 33.7 Charms Inds . . . . . . . . . . . 2.3 Shanti Edu Init . . . . . . . 120.0
BS 200 Baba Arts Karnataka Bk TVS Motor Group A
Asia/Pacific (Jan 02,19) CBOE S&P 500 (Dec 31) 28.1 10.4 On 27 Dec -772 963 0.3 0.5 1.3 *Northlink Fisca . . . . . . 32.0 Guj Leas Fin . . . . . . . . . . . 2.2 *W H Brady . . . . . . . . . 112.0
NONE JANUARY 05 Group X Group B Mahi Lifespc
Nikkei 225 (Dec 28) 20014.8 -0.3 CBOE Dow Jones (Dec 31) 24.5 -8.4 On 26 Dec -840 -280 0.4 0.9 1.7 *Fischer Chemic . . . . . . 30.1 *Brijlaxmi Le . . . . . . . . . . 2.0 Prakash Ind . . . . . . . . . . 67.0
Others Group B Amal Rane Madras Persistent S
Jan till date -73 -11 - - - *Thirdwave Fin . . . . . . . . 29.7 *RGF Capital Mar . . . . . . 1.8 *Olympic Oil . . . . . . . . . 58.3 California S JANUARY 12 Group XT TTK Prestige
Hang Seng 25130.4 -2.8 * Change over previous close *JSW Hold . . . . . . . . . 2700.0
2019 till date -73 -11 - - - *Mishtann Fo . . . . . . . 26.3 *Virgo Global . . . . . . . . . . 1.7 *Sujala Trading . . . . . . . 53.9 K P Energy Group A Helpage Fi Group B
*DSP Blackrock L . . . 1000.0
*Iris Mediaworks . . . . . . 25.5 Proseed India . . . . . . . . . . 1.0 Kapashi Comm . . . . . . . . 52.7 Umiya Tubes J & K Bank JANUARY 23 Maha Scoot
MAJOR INDICES S&P BSE SECTORAL INDICES
*Punjab Chem . . . . . . . 729.0
*SMS LifeS . . . . . . . . . . 590.4 *Spicy Ent Media . . . . . . 21.0 *Bhoruka Alum . . . . . . . . 0.9 Premier Syn . . . . . . . . . . 50.3 Group Z JANUARY 15 BS 200 Rane Brake
*SayajI Inds . . . . . . . . . 446.6 *Escorp Asset . . . . . . . . 17.0 *SV Global . . . . . . . . . . . 47.6 Amtek Auto Trident Can Fin Home JANUARY 29
Previous Close Open High Low Close Change % chng LOW
*Prabhat Tele . . . . . . . 310.0 *CHD Chemicals . . . . . . 16.8 *Hawa Engine . . . . . . . . 34.3 JANUARY 07 Group B Group A BS 200
S&P BSE Sensex 36,254.6 36,198.1 36,236.7 35,734.0 35,891.5 -363.1 -1.0 Prev close Close % Chg BS 200 Group XT Hind Media Navin Fluo Axis Bank
*Generic Phar . . . . . . . 135.9 *Bclenterpr . . . . . . . . . . 14.8 *Nexus Comm . . . . . . . . 31.9
S&P BSE Sensex 50 11,415.2 11,390.3 11,403.3 11,242.8 11,290.1 -125.1 -1.1 Auto 20,726.3 20,103.5 -3.0 NONE Indo Asia F JANUARY 16 Group X Bajaj Fin
Riba Text . . . . . . . . . . . . 135.0 *Apoorva Leas . . . . . . . . 14.6 *Betex India . . . . . . . . . . 27.1
S&P BSE-100 11,200.6 11,179.9 11,192.7 11,032.7 11,079.0 -121.6 -1.1 Bankex 30,615.5 30,379.3 -0.8 Others JANUARY 08 HT Media Shree DigCem Bajaj Finsrv
*Inflame Applian . . . . . 134.0 *Ganon Prod . . . . . . . . . 13.2 *Angel Fibers . . . . . . . . . 23.0
S&P BSE-200 4,668.6 4,661.5 4,666.0 4,600.8 4,617.9 -50.7 -1.1 Cons. Durables 20,785.2 20,671.6 -0.5 Lux Inds . . . . . . . . . . . 1340.1 BS 200 JANUARY 17 JANUARY 24 Bharat Fin Incl
Cap. Goods 18,858.5 18,699.6 -0.8 *Ratnabhumi Dev . . . . . 88.5 *Quantum Buil-Te . . . . . 11.5 *Arrow Text . . . . . . . . . . 22.2 Tata Elxsi BS 200 BS 200 Godrej Cons EIH Group A Novartis Timex Group
S&P BSE-500 14,587.3 14,567.6 14,582.1 14,382.2 14,432.4 -154.8 -1.1 *Empire Ind . . . . . . . . 1046.0
FMCG 11,797.6 11,717.1 -0.7 *Rama Pulp . . . . . . . . . . 83.0 Anubhav Inds . . . . . . . . . 10.7 California S . . . . . . . . . . . 22.0 JANUARY 09 Au Small Fin Mphasis Info Edge JANUARY 31 GIC Housing FEBRUARY 05 FEBRUARY 11
S&P BSE IPO 4,382.4 4,381.0 4,404.7 4,347.6 4,352.7 -29.7 -0.7 *DSP Blackrock L . . . 1000.0
Healthcare 13,960.6 13,885.8 -0.5 *Photon Capital . . . . . . . 75.7 Raasi Refra . . . . . . . . . . . 10.2 *Sainik Fin . . . . . . . . . . . 21.8 Delta Corp JANUARY 18 Group B Group A BS 200 FEBRUARY 02 BS 200 Group B
S&P Dollex-30 4,272.6 - - - 4,209.3 -63.3 -1.5 Steel Str Wh . . . . . . . . . 919.0
Infra 198.9 196.3 -1.3 *Dolat Invest . . . . . . . . . 71.9 Sonal Adhes . . . . . . . . . . . 9.1 *AKM Lace & Emb . . . . . 19.6 Group A ICICI Lombard Century Enka Wabco Dabur India Group B Torrent Pwer HBL Power
Nifty 50 10,910.1 10,868.9 10,895.4 10,735.1 10,792.5 -117.6 -1.1 *IST . . . . . . . . . . . . . . . . 580.2
IT 14,142.9 14,183.0 0.3 *Trescon . . . . . . . . . . . 69.2 *S.I.Capital . . . . . . . . . . . 8.0 *P H Capital . . . . . . . . . . 17.0 Bajaj Corp Group B JANUARY 25 JANUARY 30 Group B Sandhar Tech FEBRUARY 06 FEBRUARY 12
Nifty next50 28,111.7 28,074.1 28,188.4 27,801.8 27,877.0 -234.7 -0.8 *KPR Mills . . . . . . . . . . 549.2
Metal 11,752.0 11,346.6 -3.4 *MIL . . . . . . . . . . . . . . . 48.7 Genesis IB . . . . . . . . . . . 6.1 *Mystic Ele . . . . . . . . . . . 15.9 JANUARY 10 3i Infotech BS 200 BS 200 Cigniti Tech FEBRUARY 04 Group B Dolphin Off
Nifty 500 9,197.9 9,169.7 9,195.3 9,065.5 9,103.4 -94.5 -1.0 Oil & Gas 13,814.2 13,639.1 -1.3 *Suyog Telematic . . . . 205.5 BS 200 JANUARY 19 M & M Fin Bajaj Auto EIH Asso Ht Group A Prism Johnson C Opto Circuit
*Deep Polymers . . . . . . 47.0 *Vikas Proppant . . . . . . . 3.8 *Riddhi Steel . . . . . . . . . 15.4
India VIX 15.3 15.3 16.9 14.8 16.4 1.1 6.9 Power 2,004.2 1,974.3 -1.5 *DFM Foods . . . . . . . . . 200.0 Bandhan Bank BS 200 Group A Hexaware Tch Group XT Aditya Bir Fa FEBRUARY 07 FEBRUARY 20
*Athena Global T . . . . . . 43.3 *Radaan Media . . . . . . . . 3.7 *Roselabs Fin . . . . . . . . . 15.2
Nifty CPSE 2,061.2 2,054.0 2,055.7 2,022.6 2,039.0 -22.2 -1.1 PSU 7,275.6 7,166.1 -1.5 *Panasonic . . . . . . . . . 200.0 TCS HDFC Bank Sundaram Cly Group A Venlon Entr GSK Pharma Rane Hold Group A
MSE SX 40 21,373.1 21,373.1 21,373.1 21,146.0 21,146.0 -227.1 -1.1 Realty 1,837.5 1,813.4 -1.3 * Indicates that the market price of these companies reached two-year highs/lows. Group B JANUARY 21 Group B Bajaj Hold FEBRUARY 01 Group B Group X Mahindra CIE
ll.
MUMBAI | THURSDAY, 3 JANUARY 2019 STOCKS 13 <

> BS 200
WHAT THESE STOCK PAGES CONTAIN AND WHY
BS 200 stocks account for over 85 per
cent of the volume of shares, value
and trades on BSE and NSE. Routine
information on other stocks are given
separately under Other Traded Stocks.
Only NSE quotes are given in italics for
all other stocks. For the remaining
stocks, we carry BSE quotes.
For BS 200 stocks, the company
name is followed by its BSE group in
brackets and the symbol indicating
the paid-up value . Four categories
of information are provided : First,
the basic information on the day’s
trading. Information is also given on
the number of shares traded, and the
number of trading transactions, as
also the price trend with highs/lows
(3-month and 52-week).
The third sub-set of information is
on a particular stock’s one-year
return calculated on a point-to-point
basis for 1 month and 1 year followed
by market cap.
In order to assess a scrip’s future
potential, the table contains ratios
on valuation, profitability, strength,
growth and efficiency. The idea is to
get an understanding of why a share
may be active and what is in store at
the counter.
In this segment, a new byte of
information is given every day:
On Tuesdays: 1) Cash P/E, 2)
Industry P/E, 3) Quarter on quarter
EPS growth (Q/Q), and, 4) Standalone
EPS in the trailing twelve months
(TTM). On Wednesdays: quarterly EPS
for the last four quarters.On
Thursdays; 1) Dividend yield %, 2)
Payout ratio, 3) Free float, and 4) FII
stake. On Fridays: 1) Book-value per
share, 2) Price/book value, 3) Return
on Net Worth (RoNW) and, 4) Return
on Capital Employed (RoCE). On
Saturdays, the focus is on the
volatility of returns using: 1) Alpha, 2)
Beta, 3) Standard deviation, and 4)
Mean
DEFINITIONS:
P/Es have been arrived at by
dividing the day’s closing price by its
reported earning per share (EPS) for
trailing 12 months. EPS is calculated
on the basis of consolidated earnings
wherever available.
The industry P/E is the aggregate
market capitalisation of the industry
divided by the aggregate standalone
net profit (trailing 12 months) of the
industry, after excluding loss-making
companies.
The market capitalisation is
shown in ~crore and is arrived at by
multiplying the closing prices of
shares with equity capital. It changes
either because more shares have
been issued (or extinguished) or the
price has moved. Book value is net
worth (equity capital plus reserves
and surplus minus accumulated
losses) divided by the number of
shares outstanding as reported by a
company. Price to book value ratio
compares the prevailing price to BV. stock above the risk-adjusted market Open Interest: OI is the number of option becomes valueless while change occurs in the day’s closing SYMBOLS
RoNW is the ratio of net profit to return, given its level of risk contracts open at end of day in the futures contracts are compulsorily value compared with the previous FOR FACE
VALUE OF BSE NSE BSE NSE
net worth, while RoCE is the ratio of measured by beta. It is the return futures and options segment. OI thus settled on expiry. On NSE, it is the last close, the close price is underlined.
Adani Enter (A) «
SCRIPS
PBDT to capital employed. Capital given by a stock when the market indicates traders’ expectations. High Thursday of every month. A significant change means a 3 per ACC (A)
l ~100 PCLose (1487.95) (1488.80) (157.20) (157.25)
employed is net worth plus total index has zero movement. A positive OI is typical when traders see a Put/call ratio: The ratio of open cent rise or fall in scrips whose
m ~50
Open 1499.50 1487.85 157.00 157.00
long-term borrowings. High RoNW alpha indicates the stock performs continuing trend. interest in put options & call options. market values are over 10 times
High 1500.65 1501.95 158.00 157.85
and high RoCE imply a business is better than expected, given its beta Market Lots: The designated value FORMULAS: paid-up value or 15 per cent for the n ~20 Low 1474.80 1477.55 152.85 152.50
u ~6
capital-efficient. and vice-versa. A high alpha value of a single F&O contract. This differs Mean: Average of daily returns of a rest of the shares. Close 1483.15 1483.95 154.75 154.85
Standard deviation in the returns indicates the stock has a strong trend from underlying to underlying. For scrip in the last 30 trading days. The letters H or L appended to %Chng -0.32 -0.33 -1.56 -1.53
of a stock measures the volatility of independent of the market’s moves. example, it is 50 Nifty and 25 Nifty Standard Deviation: formula= sqrt prices indicate a new high or low in < ~5 Shares 20451 669K 323K 2735K
the stock over its trend. Beta indicates R Squared is the square of the Junior (((n* åy2)- (å y * å ))/(n*n) the scrip; the letters XD after the Q ~4 Trades 964 28943 1910 15331
how much the scrip moves for a unit coefficient of correlation between Strike Price: The price at which an Beta: formula ((n * å xy) - (å traded quotes indicate that the scrip PE 28.02 28.04 27.11 27.12
q ~3
3 M H/L 1580/1322 1581/1323 180/122 180/121
change in the index. A negative beta market returns and stock returns. It is option may be exercised. An option x* å y))/(n* å x2 - (å x * å x)), has gone ex-dividend after that
H ~2
52 Wk H/L 1856/1255 1857/1256 237/101 237/101
indicates the share moves in a the percentage by which the market is “in-the-money” if the market Alpha: formula (å y/n) - (Beta date; XB denotes ex-bonus,
1 M returns -2.00 -2.17 -6.92 -7.11
direction opposite to the market and influences an individual stock’s price exceeds the SP (in case of a call * (å x/n)) where n is 30 trading days, XR ex-rights; XO ex-indicator for « ~1 1 Yr returns -16.21 -16.38 -12.17 -12.12
vice versa. The beta of the index is 1. movement. R Squared could range option) and the market price is below y is å (sum) of daily price returns of a other corporate actions like Mcap 27852 27867 17019 17030
Beta is used in conjunction with R from 0 to 1, where 1 would indicate SP (in case of a put). Otherwise it is scrip for 30 trading days, x is å (sum) AGM/EGM/ preference Face value
of scrips is Dividend Yield 1.75 1.75 0.26 0.26
Squared to draw inferences of perfect correlation between the “out-of-money” of daily index returns (BSE Sensex for shares/mergers and others . M ~10 in all Payout Ratio 31.39 31.39 15.47 15.47
volatility. market index and the stock and 0 Expiry date: The date on which a BSE stocks and Nifty for NSE stocks) denotes volume of shares in million, cases if not Free Float 45.47 45.47 25.08 25.08
specified. FII Stake 10.21 10.21 19.38 19.38
Alpha is the excess return of the indicates no correlation. derivative expires . An unexercised ABBREVIATIONS: When a significant L in lakhs & K in ‘000’.

BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE
Adani Ports (A) H Adani Power (A) Ajanta Phar (A) H Allahabad Bk (A) Amara Raja (A) « Ambuja Cem (A) H H < « « « m « H H < H H
(388.80) (389.00) (50.70) (50.85) (1182.30) (1181.70) (46.70) (46.70) (739.65) (738.80) (222.65) (222.90)
387.00 388.00 50.50 50.85 1177.05 1178.50 46.85 46.70 735.00 740.00 223.25 222.90
388.90 388.95 51.10 51.05 1190.80 1191.60 46.95 47.00 738.90 741.10 223.55 223.80
w 378.25 378.00 50.25 50.20 1153.50 1154.15 44.90 44.85 730.00 730.80 218.30 218.05 w w
380.95 381.30 50.65 50.55 1161.55 1164.35 45.00 45.00 732.65 733.55 219.10 218.95
% -2.02 -1.98 -0.10 -0.59 -1.76 -1.47 -3.64 -3.64 -0.95 -0.71 -1.59 -1.77 % %
142K 1507K 805K 6175K 15496 179K 468K 4612K 6058 265K 74421 1826K K K K K K K K K K K K K
1425 17571 1136 9529 694 7089 1061 10514 214 11000 566 15208
24.46 24.48 - - 20.52 20.57 - - 26.21 26.24 22.14 22.13
M 392/294 391/294 58/21 58/21 1204/942 1204/941 50/33 50/33 808/671 807/683 230/189 231/188 M M
W 452/294 452/294 58/15 58/15 1592/898 1595/896 75/33 74/33 908/671 908/683 280/189 280/188 W W
M 1.46 1.50 -12.29 -12.62 0.26 0.76 -7.60 -7.88 2.56 2.53 -0.59 -0.48 M M
-6.60 -6.46 14.46 14.24 -20.76 -20.36 -37.79 -37.67 -13.41 -13.32 -19.52 -19.68
M 78893 78965 19535 19497 10222 10246 6498 6498 12514 12529 43506 43476 M M
0.53 0.52 - - - - - - 0.57 0.57 1.64 1.64
14.39 14.39 - - - - - - 10.10 10.10 39.22 39.22
37.70 37.70 25.03 25.03 29.53 29.53 28.19 28.19 47.94 47.94 36.89 36.89
22.31 22.31 8.72 8.72 10.92 10.92 2.56 2.56 20.41 20.41 17.23 17.23

Bank of India (A) Bata India (A) < BEML (A) Berge Paint (A) « Bharat Elctn (A) « Bharat Fin Incl (A) Bharat Forge (A) H Bharti Airtel (A) < Bharti Infratel (A) BHEL (A) H Biocon (A) < Bosch (A) BPCL (A) Britannia (A) « Cadila Healt (A) « Can Fin Home (A) H Canara Bank (A) Castrol (A) <
(106.35) (106.35) (1127.35) (1126.05) (903.35) (903.35) (332.40) (332.50) (87.80) (87.45) (1011.95) (1011.85) (510.95) (510.95) (319.55) (319.50) (262.40) (262.25) (73.70) (73.80) (625.40) (625.80) (19556.30) (19576.50) (367.35) (367.20) (3087.15) (3103.05) (349.70) (350.05) (286.55) (286.80) (281.60) (281.50) (151.45) (151.15)
106.85 106.25 1128.00 1120.40 900.00 903.00 329.75 330.60 87.80 87.25 1002.45 1011.45 508.50 510.00 316.00 316.90 260.65 261.95 73.70 73.40 624.10 624.80 19556.30 19515.00 368.40 366.00 3087.15 3100.00 349.00 348.50 284.90 286.50 281.95 280.20 151.00 151.00
107.90 107.90 1135.00 1135.00 929.00 929.70 331.50 331.85 90.10 90.25 1014.00 1014.60 510.70 510.75 320.75 321.00 267.00 266.00 74.75 74.80 631.15 631.20 19600.00 19628.95 368.40 366.00 3130.00 3131.00 349.65 350.00 290.05 290.35 283.75 283.70 151.55 151.60
w 103.85 103.80 1108.60 1108.00 895.00 895.00 325.90 325.95 86.80 86.75 996.00 995.75 w 492.10 492.00 309.20 309.10 258.75 258.70 72.40 72.45 619.60 619.00 19411.00 19431.80 w 347.65 346.75 3075.20 3081.20 343.10 342.55 278.15 278.00 273.70 273.60 147.00 146.90
104.75 104.80 1113.20 1112.05 922.70 922.90 327.25 327.30 89.65 89.70 998.95 1001.40 495.10 494.90 312.80 312.65 263.30 264.25 72.85 73.00 622.75 622.80 19465.75 19477.80 358.35 357.95 3115.85 3116.85 346.50 346.75 280.90 280.90 275.40 275.40 147.30 147.35
% -1.50 -1.46 -1.26 -1.24 2.14 2.16 -1.55 -1.56 2.11 2.57 -1.28 -1.03 % -3.10 -3.14 -2.11 -2.14 0.34 0.76 -1.15 -1.08 -0.42 -0.48 -0.46 -0.50 % -2.45 -2.52 0.93 0.44 -0.92 -0.94 -1.97 -2.06 -2.20 -2.17 -2.74 -2.51
1575K 16985K 20361 494K 241K 4513K 43885 1332K 725K 10231K 32708 199K 113K 1621K 387K 5605K 31487 1115K 1055K 8615K 69391 1233K 209 10810 602K 9863K 8982 152K 31821 558K 74141 879K 326K 5645K 88115 861K
5118 46563 673 12821 5566 78947 509 13848 2563 46781 602 10264 1876 36986 2979 50316 561 20392 2704 28628 1482 19678 104 6009 6902 112530 854 12784 580 7516 1018 10435 2398 35441 1070 8902
- - 55.35 55.30 63.06 63.07 69.46 69.48 13.55 13.55 18.72 18.76 29.16 29.15 73.19 73.15 20.05 20.12 28.12 28.18 52.91 52.91 37.94 37.97 9.33 9.32 68.83 68.85 17.63 17.64 12.08 12.08 - - 21.02 21.03
M 108/73 108/73 1146/834 1145/833 946/521 946/521 344/261 345/260 99/75 99/75 1059/824 1059/824 M 636/489 637/488 340/277 340/277 277/242 278/242 78/62 78/62 690/579 690/579 20436/17620 20500/17614 M 383/239 384/239 3245/2610 3245/2628 404/331 404/332 296/217 297/217 284/205 284/205 160/135 160/135
W 183/73 183/73 1146/657 1145/653 1603/521 1603/521 349/232 350/232 185/74 185/74 1249/824 1235/824 W 800/489 798/488 542/277 543/277 384/242 383/242 108/62 108/62 718/526 718/525 22400/16990 22400/16975 W 505/239 505/239 3472/2200 3467/2200 456/331 457/332 557/217 558/217 385/205 385/205 214/135 214/135
M 18.03 18.22 5.17 4.54 23.24 23.45 1.38 1.38 5.28 5.28 -4.17 -3.91 M -12.29 -12.21 -2.34 -2.22 2.70 3.22 2.90 3.05 1.08 1.07 1.32 1.43 M 10.58 10.50 0.77 0.72 -3.16 -2.82 4.97 4.99 6.66 6.76 -4.00 -3.97
-37.76 -37.75 44.08 43.97 -39.44 -39.44 24.50 24.35 -50.48 -50.44 0.66 0.81 -32.40 -32.49 -39.67 -39.67 -30.28 -30.21 -25.85 -25.93 14.91 14.94 -1.17 -1.09 -27.63 -27.67 33.58 33.17 -19.00 -19.08 -41.07 -41.04 -22.02 -21.94 -23.02 -22.95
M 18258 18266 14307 14292 3842 3843 31776 31781 21844 21856 14001 14036 M 23052 23043 125039 124979 48700 48876 26746 26801 37365 37368 59409 59446 M 77735 77648 74874 74898 35471 35497 3740 3740 20193 20193 14570 14575
- - 0.36 0.36 0.87 0.87 0.55 0.55 2.23 2.23 - - 0.91 0.91 1.71 1.71 5.32 5.30 2.50 2.49 0.16 0.16 0.51 0.51 5.86 5.87 - - - - - - - - - -
- - 18.10 18.10 17.20 17.20 32.14 32.14 29.53 29.53 - - 20.66 20.66 16.26 16.26 72.06 72.06 41.95 41.95 16.02 16.02 16.61 16.61 43.11 43.11 - - - - - - - - - -
16.91 16.91 47.04 47.04 45.97 45.97 25.01 25.01 33.91 33.91 98.42 98.42 54.24 54.24 32.86 32.86 46.49 46.49 36.94 36.94 39.33 39.33 29.51 29.51 46.07 46.07 49.34 49.34 25.21 25.21 70.01 70.01 27.45 27.45 49.00 49.00
1.48 1.48 8.78 8.78 3.62 3.62 5.28 5.28 4.92 4.92 53.67 53.67 20.19 20.19 18.32 18.32 42.29 42.29 13.57 13.57 17.20 17.20 6.89 6.89 16.92 16.92 16.29 16.29 8.32 8.32 - - 4.81 4.81 8.59 8.59

CEAT (A) Century Tex (A) CESC (A) CG Power (A) H Chennai Petr (A) Chola Inv (A) Cipla (A) H Coal India (A) Colgate (A) « Containr Crp (A) < Cummins (I) (A) H Dabur India (A) « DCB Bank (A) Dewan Hsg (A) Dish TV (A) « Divis Lab (A) H DLF (A) H Dr Reddys (A) <
(1293.45) (1293.60) (922.90) (922.40) (671.95) (671.30) (45.85) (45.70) (291.15) (290.55) (1256.55) (1255.15) (523.00) (523.05) (241.10) (241.50) (1325.20) (1323.90) (685.85) (685.30) (850.70) (848.45) (422.55) (421.85) (169.20) (169.25) (246.40) (246.35) (37.95) (38.05) (1478.55) (1475.45) (180.55) (180.30) (2610.80) (2607.05)
1274.00 1288.00 920.10 923.95 669.35 670.85 45.80 45.45 290.00 288.00 1247.00 1252.50 524.00 521.90 241.10 240.90 1320.25 1315.00 686.00 686.00 846.55 848.00 424.95 421.95 170.75 170.00 245.50 245.20 39.40 38.05 1470.00 1476.90 181.00 179.90 2619.00 2606.00
1309.30 1309.75 922.45 923.95 673.05 674.15 45.90 45.90 292.00 292.65 1265.95 1266.85 524.00 522.50 241.20 241.45 1322.70 1322.75 689.00 689.10 857.15 858.70 425.20 425.35 172.45 172.20 249.40 249.35 39.40 38.75 1483.15 1483.60 181.00 179.90 2619.00 2618.00
w 1274.00 1278.15 901.00 900.70 664.00 663.50 44.00 44.10 282.00 281.30 1227.95 1228.05 w 513.65 513.15 235.00 236.05 1300.00 1297.20 664.00 663.00 838.35 838.00 411.20 411.00 w 167.60 167.30 240.80 240.30 37.50 37.40 1462.00 1461.40 172.30 172.25 2576.00 2575.05
1289.25 1292.60 906.15 905.60 667.00 666.85 44.45 44.35 284.95 285.00 1233.15 1236.95 515.65 514.55 237.00 236.70 1303.65 1301.80 669.85 668.95 844.60 845.90 416.00 416.40 168.90 168.70 241.95 241.70 38.30 38.35 1471.20 1470.90 172.90 173.10 2600.60 2601.05
% -0.32 -0.08 -1.81 -1.82 -0.74 -0.66 -3.05 -2.95 -2.13 -1.91 -1.86 -1.45 % -1.41 -1.63 -1.70 -1.99 -1.63 -1.67 -2.33 -2.39 -0.72 -0.30 -1.55 -1.29 % -0.18 -0.32 -1.81 -1.89 0.92 0.79 -0.50 -0.31 -4.24 -3.99 -0.39 -0.23
26263 428K 25579 325K 16156 401K 626K 5001K 51346 655K 14183 285K 45277 1243K 269K 3898K 22270 397K 27722 1093K 17760 387K 200K 2550K 89182 2072K 771K 7177K 161K 3352K 12023 247K 560K 6604K 19866 418K
928 11972 616 7947 521 15280 1464 9161 881 8776 963 25748 936 32228 2420 35902 1223 20634 835 41510 751 20652 2503 41839 945 15519 7153 52394 491 4968 709 12987 2754 41658 999 23048
17.77 17.81 19.55 19.53 9.84 9.83 - - 5.68 5.68 19.77 19.83 30.12 30.05 13.17 13.15 47.58 47.51 27.88 27.84 32.16 32.21 51.17 51.22 19.78 19.75 5.09 5.08 42.59 42.64 33.96 33.95 6.30 6.30 27.52 27.53
M 1373/984 1373/986 953/718 954/718 950/643 948/642 46/33 46/33 301/221 301/221 1387/1039 1390/1038 M 663/504 664/503 288/229 289/228 1365/1020 1355/1018 697/541 697/542 867/643 867/643 459/359 459/363 M 173/141 174/140 333/176 334/176 59/32 60/32 1577/1214 1578/1213 194/141 194/142 2745/2332 2750/2332
W 2030/984 2019/986 1472/718 1471/718 1189/643 1190/642 99/33 99/33 464/221 464/221 1761/1039 1760/1038 W 678/504 678/503 317/229 317/228 1365/1020 1355/1018 750/541 750/542 993/612 984/613 491/312 491/312 W 207/140 207/140 690/176 692/176 87/32 87/32 1577/979 1578/978 274/141 274/142 2745/1888 2750/1887
M 2.04 2.37 -0.21 -0.30 -4.62 -4.47 8.02 7.91 3.58 3.43 -6.27 -5.89 M -3.81 -3.96 -4.76 -4.94 2.71 2.25 -1.57 -1.65 4.36 4.58 0.65 0.84 M 4.39 4.50 11.19 11.02 3.10 3.37 1.12 0.97 -4.32 -4.07 -2.66 -2.51
-33.77 -33.56 -35.63 -35.74 -37.11 -36.97 -51.39 -51.37 -33.23 -33.12 -5.48 -5.53 -15.06 -15.20 -12.96 -12.93 18.92 18.52 -2.04 -2.35 -9.03 -9.17 17.48 17.41 -12.03 -12.07 -58.82 -58.87 -54.99 -54.91 33.96 33.79 -33.04 -32.98 11.32 11.20
M 5215 5229 10122 10116 8842 8840 2786 2780 4243 4244 19280 19340 M 41543 41455 147116 146929 35459 35409 32651 32607 23412 23448 73478 73549 M 5224 5218 7593 7585 7052 7061 39053 39045 30854 30890 43186 43193
- - - - - - - - - - - - - - - - - - - - - - - - 0.35 0.35 - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - 6.19 6.19 - - - - - - - - - -
49.02 49.02 49.79 49.79 50.08 50.08 65.62 65.62 32.71 32.71 46.94 46.94 63.30 63.30 21.68 21.68 49.00 49.00 45.20 45.20 49.00 49.00 32.12 32.12 85.06 85.06 60.79 60.79 39.17 39.17 47.98 47.98 25.06 25.06 73.23 73.23
21.49 21.49 9.03 9.03 10.75 10.75 13.97 13.97 8.43 8.43 20.45 20.45 26.08 26.08 5.68 5.68 13.25 13.25 26.55 26.55 12.38 12.38 18.15 18.15 24.24 24.24 19.43 19.43 11.71 11.71 17.15 17.15 16.71 16.71 26.82 26.82

Eicher Motor (A) Enginers Ind (A) < Equitas Hold (A) Escorts (A) Exide Ind (A) « Federal Bank (A) H GAIL (A) Glenmark (A) « GMR Infra (A) « Godfrey Ph (A) H Godrej Cons (A) « Godrej Ind (A) « Grasim Ind (A) H GSFC (A) H Havells I (A) « HCL Techno (A) H HDFC (A) H HDFC Bank (A) H
(23184.05) (23195.10) (126.75) (126.65) (124.05) (124.20) (719.45) (719.80) (267.70) (267.50) (93.00) (93.00) (362.20) (362.15) (692.15) (692.15) (16.45) (16.40) (881.90) (879.80) (808.10) (807.35) (543.25) (543.60) (832.75) (833.50) (116.15) (116.30) (694.80) (694.80) (962.00) (959.85) (2009.60) (2009.00) (2147.45) (2148.10)
22321.00 22340.00 126.10 126.00 124.85 124.20 721.90 721.50 266.80 266.00 93.35 93.20 355.65 360.55 688.85 691.80 16.45 16.40 881.20 880.55 812.00 815.00 539.45 540.90 824.50 829.90 115.80 115.30 692.00 692.00 951.00 959.00 2009.90 2004.70 2145.00 2142.80
22488.00 22340.00 127.55 127.75 126.40 126.45 730.25 729.50 268.00 268.10 95.70 95.75 360.40 361.90 691.50 691.80 16.45 16.45 894.00 893.95 822.90 822.75 546.80 547.50 838.00 838.00 117.40 117.40 703.15 703.00 961.90 962.00 2009.90 2009.00 2147.95 2147.50
w 21000.00 20950.25 124.50 124.60 122.50 122.20 702.40 702.00 260.10 260.20 93.15 93.15 w 348.60 347.55 673.45 673.05 15.90 15.85 861.30 860.15 801.50 796.20 534.00 535.00 w 813.30 812.75 111.20 111.25 689.05 690.00 941.55 939.15 1963.75 1961.00 2120.10 2119.70
21164.05 21162.30 125.05 125.00 123.30 123.15 707.20 707.10 261.00 261.40 94.85 94.80 351.50 350.30 681.65 683.05 15.95 15.95 868.15 868.05 807.65 806.65 536.85 538.25 816.05 815.50 111.95 111.90 690.80 691.80 945.85 946.35 1979.00 1980.65 2125.95 2128.50
% -8.71 -8.76 -1.34 -1.30 -0.60 -0.85 -1.70 -1.76 -2.50 -2.28 1.99 1.94 % -2.95 -3.27 -1.52 -1.31 -3.04 -2.74 -1.56 -1.34 -0.06 -0.09 -1.18 -0.98 % -2.01 -2.16 -3.62 -3.78 -0.58 -0.43 -1.68 -1.41 -1.52 -1.41 -1.00 -0.91
25210 481K 130K 1099K 142K 1401K 312K 4236K 55832 795K 879K 18354K 439K 3528K 36687 583K 906K 9111K 9764 235K 34799 1266K 14053 259K 43536 822K 278K 2201K 50348 1228K 74043 1135K 90275 2001K 92891 2034K
10627 121593 1285 6979 1001 9108 5819 72206 597 12625 2820 45253 5008 56740 945 9891 654 4894 428 9673 1103 28511 517 7735 1100 17462 1611 10023 1054 27823 2177 54434 3371 98280 2946 95751
27.39 27.39 21.85 21.84 134.24 134.07 20.26 20.25 26.98 27.03 20.15 20.14 14.40 14.35 21.29 21.34 - - 19.44 19.44 40.67 40.62 26.85 26.92 33.81 33.79 6.85 6.85 53.40 53.48 14.21 14.22 20.95 20.97 30.35 30.39
M 25300/20301 25350/20001 130/100 129/100 135/78 135/78 730/543 730/541 274/237 274/237 96/67 96/67 M 385/296 386/295 707/575 706/574 18/15 18/15 954/640 955/640 848/628 850/644 561/434 561/435 M 1004/756 993/756 119/86 119/86 717/550 718/550 1105/931 1102/931 2019/1646 2017/1645 2158/1884 2159/1885
W 32210/20301 32237/20001 204/100 204/100 173/78 174/78 1019/543 1018/541 305/193 305/192 117/67 116/67 W 399/296 399/295 712/484 712/494 25/15 25/15 1080/640 1080/640 979/628 979/644 657/434 658/435 W 1258/756 1261/756 166/86 166/86 729/454 729/450 1125/880 1125/880 2051/1646 2053/1645 2219/1830 2220/1829
M -10.12 -10.20 7.29 7.43 9.16 8.69 0.09 -0.01 0.40 0.40 12.25 12.32 M -1.25 -1.50 9.52 9.87 -2.68 -2.68 -6.00 -5.91 4.92 4.57 -2.17 -1.80 M -5.69 -5.67 3.61 3.47 -0.14 -0.04 -7.15 -7.06 0.09 -0.01 0.59 0.72
-26.50 -26.56 -36.91 -37.33 -14.73 -14.95 -8.45 -8.52 17.07 17.04 -12.01 -11.98 -4.56 -4.70 15.09 15.41 -26.83 -26.83 -11.85 -11.99 23.00 22.67 -11.53 -11.44 -27.72 -27.65 -25.58 -25.62 24.41 24.50 5.47 5.47 16.35 16.45 14.75 14.89
M 57714 57710 7902 7899 4208 4203 8669 8668 22185 22219 18814 18805 M 79266 78995 19236 19276 9627 9627 4514 4514 82558 82456 18060 18107 M 53663 53627 4461 4459 43210 43272 131719 131789 340279 340563 578152 578846
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
50.65 50.65 47.98 47.98 100.00 100.00 59.93 59.93 54.01 54.01 100.00 100.00 46.93 46.93 53.46 53.46 37.04 37.04 27.81 27.81 36.76 36.76 25.28 25.28 59.91 59.91 62.16 62.16 40.45 40.45 39.83 39.83 100.00 100.00 78.57 78.57
31.46 31.46 4.43 4.43 17.93 17.93 22.42 22.42 13.43 13.43 35.61 35.61 18.54 18.54 30.90 30.90 18.32 18.32 12.00 12.00 27.89 27.89 11.81 11.81 23.51 23.51 17.40 17.40 25.77 25.77 28.01 28.01 72.19 72.19 31.61 31.61

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(3128.70) (3127.60) (332.30) (332.30) (277.95) (277.85) (222.80) (222.75) (256.35) (256.70) (1803.10) (1801.10) (363.65) (363.75) (325.85) (325.90) (61.40) (61.45) (43.40) (43.45) (43.30) (43.35) (15.07) (15.05) (96.00) (96.00) (844.35) (844.75) (251.50) (251.35) (271.65) (271.65) (1594.35) (1595.60) (47.40) (47.45)
3123.00 3115.00 332.60 331.75 277.95 275.00 218.75 218.95 256.45 255.85 1798.00 1792.40 362.65 361.50 325.85 323.70 61.45 61.40 43.40 43.20 43.15 43.20 15.05 15.00 97.00 96.55 842.95 841.00 252.50 252.25 274.00 271.60 1585.00 1587.60 47.75 47.70
3123.00 3117.30 340.65 341.25 277.95 277.75 219.20 219.15 258.40 258.50 1808.70 1808.85 367.95 367.90 325.85 327.00 61.55 61.50 43.70 43.75 43.60 43.60 15.20 15.20 97.00 96.70 855.20 856.50 255.60 255.70 276.00 276.75 1596.95 1598.00 47.75 47.70
w 3035.00 3023.80 329.70 329.10 272.05 271.70 213.75 213.65 245.00 244.70 1772.55 1771.30 w 360.45 360.30 318.00 318.10 61.15 61.25 42.00 42.00 42.25 42.20 14.45 14.40 w 93.30 93.35 833.20 832.85 244.55 244.50 270.10 269.85 1568.00 1568.25 45.65 45.40
3046.05 3046.55 331.15 330.75 273.50 272.75 214.40 214.55 256.25 256.55 1784.00 1784.60 364.35 364.60 319.55 319.80 61.35 61.35 42.20 42.15 42.70 42.70 14.60 14.60 93.70 93.85 842.60 842.30 245.70 245.85 274.45 275.35 1577.40 1576.60 46.30 46.25
% -2.64 -2.59 -0.35 -0.47 -1.60 -1.84 -3.77 -3.68 -0.04 -0.06 -1.06 -0.92 % 0.19 0.23 -1.93 -1.87 -0.08 -0.16 -2.76 -2.99 -1.39 -1.50 -3.12 -2.99 % -2.40 -2.24 -0.21 -0.29 -2.31 -2.19 1.03 1.36 -1.06 -1.19 -2.32 -2.53
47761 598K 151K 2016K 25843 337K 651K 10991K 902K 10667K 50367 1599K 717K 18243K 31795 409K 218K 2957K 303K 2402K 604K 11044K 413K 7357K 252K 4111K 352K 3995K 183K 3144K 67061 2508K 53309 1165K 956K 7802K
3107 49376 2264 28750 471 4476 3693 61681 7289 87620 2292 58293 6478 133500 786 8147 413 2836 807 5715 1344 18565 870 4905 1028 14133 6949 83323 1884 30118 1025 24004 1482 48985 2330 18999
16.63 16.63 16.95 16.93 13.65 13.61 32.61 32.63 6.00 6.01 67.38 67.40 67.83 67.88 33.36 33.39 - - 11.42 11.41 - - - - 39.76 39.83 8.38 8.38 14.85 14.86 27.30 27.39 24.70 24.69 33.06 33.02
M 3383/2649 3380/2648 460/295 459/294 299/260 299/259 260/206 260/211 261/163 262/163 1871/1478 1870/1477 M 375/295 375/295 364/302 364/301 62/54 62/54 45/34 45/34 45/33 45/33 15/12 15/12 M 104/80 104/80 1004/640 1004/639 270/211 270/210 297/215 294/215 1695/1334 1696/1333 81/28 80/28
W 3862/2649 3825/2648 557/295 558/294 340/260 340/259 284/193 284/192 435/163 435/163 1871/1282 1870/1281 W 375/257 375/257 462/302 462/301 90/47 92/47 68/34 68/34 70/33 70/33 35/12 35/12 W 206/80 206/80 1439/640 1440/639 406/211 406/210 336/215 336/215 2038/1334 2038/1333 243/28 243/28
M 0.07 0.22 1.23 1.12 0.53 0.02 -7.98 -7.94 13.71 14.07 -2.29 -2.25 M 2.49 2.56 -0.53 -0.57 3.11 3.28 3.18 3.06 11.52 11.34 6.41 6.57 M -3.60 -3.50 7.86 7.57 6.85 7.10 4.93 5.12 -4.73 -4.81 -3.24 -3.34
-18.80 -18.87 -5.57 -5.61 -12.33 -12.58 -22.43 -22.41 -37.69 -37.57 32.14 32.16 15.65 15.75 -15.35 -15.10 3.20 3.11 -31.49 -31.69 -21.14 -21.14 -50.00 -50.09 -49.87 -49.65 -28.96 -28.96 -34.23 -34.12 -17.62 -17.25 -3.24 -3.29 -67.66 -67.87
M 60830 60840 9847 9835 115562 115245 48144 48177 39048 39094 386165 386295 M 234665 234826 45880 45916 27737 27737 6737 6729 14537 14537 2476 2476 M 2902 2906 36009 35996 11801 11808 19212 19275 94972 94924 3072 3068
- - - - - - - - - - - - 0.62 0.62 - - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - 19.28 19.28 - - - - - - - - - - - - - - - - - - - - - -
65.37 65.37 37.24 37.24 35.08 35.08 65.33 65.33 100.00 100.00 32.81 32.81 100.00 100.00 21.29 21.29 14.04 14.04 100.00 100.00 43.84 43.84 43.58 43.58 71.74 71.74 78.44 78.44 18.27 18.27 55.00 55.00 85.06 85.06 61.78 61.78
38.87 38.87 19.56 19.56 1.78 1.78 26.22 26.22 20.17 20.17 12.11 12.11 34.00 34.00 8.86 8.86 1.04 1.04 34.09 34.09 10.20 10.20 5.13 5.13 15.69 15.69 55.16 55.16 5.25 5.25 21.14 21.14 46.58 46.58 6.22 6.22

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(664.65) (665.05) (1166.35) (1165.60) (137.65) (137.70) (281.05) (280.80) (162.60) (162.90) (7.73) (7.75) (303.55) (303.95) (1252.40) (1250.85) (499.65) (500.10) (493.75) (494.25) (113.15) (113.25) (576.10) (576.30) (1251.35) (1250.45) (216.80) (217.10) (1441.75) (1441.90)
668.00 666.00 1175.00 1170.00 137.10 137.30 274.00 272.00 160.00 160.00 7.80 7.75 293.20 296.05 1250.75 1244.00 499.00 500.10 493.45 493.00 112.80 113.00 576.50 576.50 1245.50 1247.90 217.00 217.10 1442.80 1441.00
673.70 674.00 1178.95 1179.10 138.10 138.20 278.25 278.35 160.70 160.95 7.94 7.95 297.95 297.95 1275.90 1276.20 505.35 505.30 496.55 497.90 114.25 114.20 584.80 585.00 1248.30 1248.25 220.30 220.05 1444.00 1444.90
w 662.45 662.05 1155.00 1154.20 134.15 134.10 w 261.00 260.50 157.00 157.00 7.32 7.30 287.00 286.60 1230.00 1229.00 493.85 493.30 w 487.75 487.55 111.00 111.00 564.95 564.00 1228.10 1227.00 215.20 215.60 1417.55 1417.10
669.30 669.05 1162.15 1161.00 137.20 137.25 263.75 263.55 158.05 158.20 7.39 7.40 288.70 288.70 1239.20 1239.15 495.95 495.65 493.55 494.45 111.35 111.55 568.40 566.65 1240.90 1240.60 215.90 216.05 1426.40 1425.50
% 0.70 0.60 -0.36 -0.39 -0.33 -0.33 % -6.16 -6.14 -2.80 -2.89 -4.40 -4.52 -4.89 -5.02 -1.05 -0.94 -0.74 -0.89 % -0.04 0.04 -1.59 -1.50 -1.34 -1.67 -0.84 -0.79 -0.42 -0.48 -1.06 -1.14
420K 7417K 46994 644K 761K 11510K K K K 966K 11589K 947K 11623K 12557K 44623K 381K 8855K 141K 2794K 67714 977K 15456 284K 84382 1577K 18977 267K 241K 1714K 42629 833K 94173 2059K
7740 108094 1346 22147 4147 51738 10013 92077 4287 95581 9568 20259 4419 68131 3620 69127 871 13967 431 6641 572 7151 454 6803 3056 50162 834 10425 3188 53923
17.68 17.67 174.97 174.79 5.75 5.75 - - - - - - 7.69 7.69 57.09 57.09 21.65 21.63 35.75 35.82 8.43 8.44 17.13 17.07 35.14 35.13 14.23 14.24 23.10 23.09
M 752/601 752/600 1190/697 1188/691 159/106 159/105 M 357/164 367/164 198/141 198/141 8/6 8/6 387/286 388/286 1376/982 1376/977 522/417 523/416 M 498/316 499/310 114/92 114/93 610/448 614/450 1345/1040 1346/1040 233/187 233/187 1459/1183 1460/1183
W 755/503 755/503 1520/697 1520/691 214/106 214/105 W 884/163 883/163 294/141 294/141 27/6 27/6 427/266 428/266 1575/897 1578/900 648/358 647/358 W 764/316 765/310 171/92 169/93 660/433 661/431 1424/993 1417/996 315/186 315/186 1470/1183 1470/1183
M -0.08 -0.19 18.42 18.13 3.20 3.35 M -13.75 -13.89 -2.23 -2.31 6.79 7.25 -8.54 -8.32 -6.62 -6.83 1.21 1.20 M 12.63 12.79 6.10 6.39 6.38 5.64 0.94 1.18 2.40 2.39 0.12 -0.14
31.35 31.02 -3.77 -3.92 -28.96 -28.94 -69.66 -69.73 -28.04 -27.94 -69.53 -69.48 7.64 7.44 34.12 33.92 -3.69 -3.83 -32.96 -32.91 -27.34 -27.16 5.98 5.57 24.08 24.05 8.68 8.79 11.77 11.78
M 292393 292284 44674 44630 133246 133295 M 2996 2994 15298 15312 1798 1800 69785 69785 16354 16353 3344 3342 M 7847 7862 3147 3153 3589 3578 236682 236625 4264 4267 200010 199884
- - - - - - - - - - - - - - - - - - - - 3.59 3.59 - - - - - - - -
- - - - - - - - - - - - - - - - - - - 30.09 30.09 - - - - - - - -
87.18 87.18 25.06 25.06 49.00 49.00 41.34 41.34 61.09 61.09 57.68 57.68 55.06 55.06 66.09 66.09 52.42 52.42 100.00 100.00 44.91 44.91 69.98 69.98 81.07 81.07 100.00 100.00
35.05 35.05 15.08 15.08 3.64 3.64 18.30 18.30 10.37 10.37 19.80 19.80 39.16 39.16 36.27 36.27 24.29 24.29 12.57 12.57 19.02 19.02 39.44 39.44 48.27 48.27 18.58 18.58

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14 PERSONAL FINANCE
>
Managing assets when you split
It isn't just the assets, but even liabilities
such as car or home loans that can be a
cause for concern in a divorce
SWARNAMI MONDAL
A
bhishek and Joyeeta were a
typical young urban couple
– double income, no kids, or
DINK. But when they decided to
split after five years, there were
uncomfortable questions. How to
divide the assets – an apartment, a
joint account or joint investments?
With the divorce rate going up in
India, more and more couples are
facing this dilemma.
Division of property: Since
Abhishek and Joyeeta co-owned
the apartment and both were serv-
icing the loan equally, each will
have 50 per cent right over the
property. “In such cases, it is impor-
tant to decide who gets what por-
tion of the property and how the
loan responsibility is distributed,”
says Supratim Roy, a Calcutta High
Court advocate.
Ideally, the property should be
sold, and the outstanding amount
repaid to the lender. Both can
divide the rest of the money. The
other solution: One transfers the
entire loan in his/her name, and
gives the other 50 per cent of the
market value. This might mean
that the loan may have to be refi-
nanced, and if borrowing ability is
reduced, the tenure may have to
be extended.
Deepavali and Pramit’s case is
different. They parted ways after
three years, and the house they'd
bought was registered in
Deepavali’s name to pay lower
property registration fee applica-
ble to women. “The property has
been paid for and purchased by
Pramit, but the title is held by
Deepavali. In this case, Deepavali
is the rightful owner of the entire
property,” says Roy. “However, if
Buy luxury properties only for self-use
Investing for quick returns would be a bad idea, as capital appreciation is unlikely in the short term
VINOD BEHL
The luxury housing market, which
had been badly bruised by demon-
etisation, the Real Estate Regulatory
Act and the Goods and Services Tax,
is still finding few takers. According
to Proptiger.com data from January-
October 2018, a total of 10,591 luxury
units were sold in the top nine cities.
As of today, the fate of around 640
units hangs in the balance with over
50 per cent of invento-
ry being over five years
old. Anarock data
shows that out of total YOUR MONEY
unsold stock in the
third quarter of 2018
across seven top cities,
luxury housing com-
prised 12 per cent.
Reasons for the
slowdown: The slow-
down in luxury housing demand,
according to Sanjay Dutt, MD & CEO,
Tata Housing, is there as everyone
waits for a better value. He says it is
locations that are not established or
least established in HNI markets but
are promoted through branding and
architecture which have taken a
strong hit. Anuj Puri, Chairman,
Anarock Property Consultants, says
that luxury housing has been most
hit due to demonetisation as the seg-
READER’S CORNER : TAX
KULDIP KUMAR
I have three old employee
provident fund accounts from
previous employers. No money
has been credited into those
account for five years or more.
Will the money in these
accounts continue to earn
interest?
Yes, you will continue earning
interest on your provident fund
accounts as they will not be des-
ignated as inoperative. Thanks
to the amendment in 2016,
wherein, any account where the
member ceases to be in employ-
ment and does not apply for
withdrawal or transfer within 36
months was brought out of the
purview of inoperative account.
I had an outstanding demand
of around ~22,000 from the
Income-Tax (I-T) department
in 2013. I paid the demand
Pramit can prove in court that he
has funded the purchase even
though the title is held by the
spouse, he can claim the property.”
This can be done by submitting to
the court, bank statements show-
ing he paid the principal or instal-
ments. Had the property title been
in Pramit’s name, Deepavali would
still get 50 per cent. The wife can
even claim 50 per cent of inherited
property, but only if it is in the hus-
band’s name.
Splitting assets: Many couples
treat savings and investments as
common assets. So, there are joint
accounts and joint investments that
must be divided equally between
the two. One way to do this is
through a marital settlement agree-
ment under which assets and debts
of a couple are divided, in the event
of an uncontested divorce. Of
course, things could be complex in
a contested divorce. “Apart from
cash savings, dividing investments
in shares, mutual funds, fixed
deposits and SIPs may require extra
effort. The simplest way is to liqui-
date them and split the proceeds.
This can be done based on individ-
ual contribution too,” says Manik
Sarkar, financial planner.
Debts can be tricky: Debts are just
as important since they also factor
in a a couple's net worth. There are
cases where people cannot or do not
pay the debts they were assigned in
the divorce by the court. In such cas-
es, the creditors may come after the
spouse responsible for the debt,
even though originally both parties
were responsible for the loan.
If your spouse doesn't clear his
or her credit card debt and the
issuer is hounding you, petition the
court to enforce the divorce agree-
ment attracts the bulk of unaccount-
ed money in both primary and sec-
ondary real estate markets. Niranjan
Hiranandani, Co-Founder & MD,
Hiranandani Group adds that buy-
ers' shaken faith in under-construc-
tion properties has seen lower off-
take of luxury housing across India.
Sudhir Pai,
Magicbricks.com attributes the
CEO,
sluggish demand in luxury housing
to flat prices coupled with relatively
low yields of about two
per cent. And as such
wealthy investors who
invested in luxury
housing, have now
moved on to other
investment avenues
for better returns.
Gorakh Jhunjhunwala,
managing director,
Meraqi, endorses Pai,
saying that owing to 3-
4 per cent appreciation in luxury
homes over the last 7-8 years, cash-
rich individuals/investors are now
evaluating non-traditional real
estate asset classes to optimise their
investment values and returns.
Ankur Dhawan, Chief Investment
Officer, Proptiger.com attributes
poor performance of luxury housing
to increasing rental yields in com-
mercial segment which has
emerged as an alternative invest-
after getting a notice in 2014.
This financial year, the
department started sending
me notices again for the same
demand. From my online
account, I uploaded the receipt
and raised a grievance at the
online portal. However, the
department still deducted the
amount from my refund. What
can I do now?
It is important to check whether
the current outstanding
demand relates to the year 2013
only or is there a demand still
unpaid of some other year. You
can access your online account
and view 'outstanding demand'
to verify this. Alternatively, you
can check the notice under sec-
tion 245 issued by the depart-
ment before making such
adjustment and see the details
of demand unpaid. If this is
indeed for the year 2013, you
can file an online response to
the notice by clicking 'disagree
with demand' and also upload
the NIL order you would have
received from the department
after making the payment in
2014. If you have already done
this and still demand is appear-
ing in the portal, you need to
call CPC, Bangalore representa-
tives and discuss the case. Do
MUMBAI | THURSDAY, 3 JANUARY 2019 1
Don’t mix debt and
equity investment
Starting an SIP with interest
received from a fixed income
instrument is a flawed strategy
TINESH BHASIN
ompanies are coming up with attractive interest rates
C on non-convertible debentures (NCD) issues. M&M
Financial services will be offering 9.05 – 9.5 per cent on
its NCDs opening that will open on January 4. The Shri-
ram Transport Finance issue that opens on January 7, will
offer interest rates of 9.12-9.70 per cent. The rates vary
with the tenure – longer the investment period, higher
the interest rate offered.
Interesting, some distributors are suggesting investors
put money in such NCD issues, opt for a monthly payout of
interest income and use the amount for a systematic invest-
ment plan (SIP) in an equity fund. Distributors are recom-
mending this strategy to clients who are either first-time
equity investor or are wary of the volatility in equity. With
this strategy, an investor can also get to preserve his capital.
DID YOU KNOW? PHOTO:ISTOCK But investment advisors advise against this strategy.
“Equities help investors to earn higher returns over a long
STREEDHAN gift, he/she can buy the spouse out. horizon despite the volatility. The investor can make much
n Under the Hindu Marriage Act, any wedding n Any gift made to the husband during or after higher returns if he invests the entire money in an equity
the marriage by the woman’s parents cannot fund instead of just the interest portion from a fixed instru-
gift is a woman’s personal wealth, or Streedhan ment,” says Kartik Jhaveri, director, Transcend Consulting.
n This includes the husband's inherited be claimed back Jhaveri says that if a person is not comfortable with volatil-
property gifted to her ALIMONY ity, it’s best to stick to fixed deposits. But if an individual
n Such properties cannot be contested in court,
has no option but to invest in equities for higher returns to
n It is the amount one spouse pays to the other meet his goals, then he has to live with the volatility. “There
as there is a change of title and it exclusively to support him/her after divorce is no other way to create wealth and
belongs to the wife n Under the Hindu Marriage Act, the court can
reach your goals,” says Jhaveri. An investor who
n When the wife entrusts her Streedhan to her
When a distributor shows the wants to earn
order either the husband or wife to pay calculation, you will see there’s not higher returns to
husband, and he misappropriates it, he alimony to the other much difference between investing meet his goals,
commits criminal breach of trust n If children remain under the custody of
all the amount in equity versus in- has to live with
n In case of a dispute, a list of all items given as
vesting the interest portion through the volatility in
claimant of alimony, the tuition fees and other a SIP. If an individual invests ~12 equities
gifts signed by two witnesses can be produced relevant expenses thereof must be factored in lakh in an NCD that gives a return of
to make a claim n Section 125 of Code of Criminal Procedure
9.5 per cent for 10 years with a monthly payout option, he
n If one partner wants to keep a jointly-held will get around ~9,500. He uses this amount for an SIP of
grants the right of interim maintenance 10 years. If the investment grows at a compounded annual
rate of 12 per cent, he will have an equity corpus of about
ment. If you can afford to, pay the divorce. This will make splitting ing more debt run up, cancel all ~22 lakh after a decade, which is his gains. In addition, his
debt and keep proof of your pay- finances, debts, properties easier cards you are aware of. “To prevent capital of ~12 lakh is preserved.
ment, then, notify the family court down the line,” says Ashik Hussain, your spouse from running up debt Say, the investor puts all the money in an equity mu-
and ask for assistance in getting a Calcutta, High court advocate. The that you might ultimately have to tual fund, and it grows at 12 per cent every year. After 10
reimbursed from your former original credit card agreement or pay, file documentation with the years, he will have a corpus of ~37.27 lakh, which means
spouse. “Try to pay as much as debt loan contract supersedes a divorce court about joint credit cards and his returns are ~25.27 lakh. The difference that a distribu-
as possible before your lawyer starts decree, at least in the eyes of the debts owned on them,” says tor will show is mere ~3.2 lakh.
drafting the agreement of the bank. To protect yourself from hav- Hussain. But this calculation that a distributor shows an in-
vestor is without taking taxes into account. If a person in
the 30 per cent tax bracket receives ~9,500 a month, he
will also need to pay a maximum tax of ~2,850. It means,
the SIP amount drops to ~6,650. For someone in 20 per
cent tax bracket, the monthly SIP amount will be ~7,600.
If a person takes the taxes into consideration, the differ-
ence is much wider than what a distributor shows. Also,
if you are using the NCD payout, you could be taxed twice
– once on the NCD returns and second, if you withdraw
MAJOR LUXURY PROJECTS Deals to beat slowdown: In over ~100,000 from equities in a financial year.
order to beat slowdown, developers When evaluating a financial product, don't just go by
City Project Developer Budget (~ cr) of luxury housing have been offer- distributor's calculations. Do your own math before put-
Gurgaon The Magnolias DLF Group 15.40-26.70 ing deals and discounts. The trend ting in the money.
Mumbai Indiabulls Sky Indiabulls 10.00-20.00 of affordable luxury also caught the
Delhi Unity The Amaryllis Unity Group 1.56-7.54 fancy of home buyers. “There is
Chennai Express Exclusive Express Infrastructure 6.74-16.57 always demand for such projects as
they are targeted towards aspira-
Mumbai 10 BKC Radius Developers 4.40-13.00
Bangalore Embassy Lake Terraces Embassy Group 3.90-13.00
tional buyers while also offering
some amenities generally offered TIPPING POINT
Pune Verde Residence Collection ABIL 4.77-5.97 in the luxury segment,” says Samir
Jasuja, MD, Prop Equity. Affordable
Should you shift to longer-duration funds ?
Hyderabad Brigade At No 7 Brigade Group 4.56-7.03 Despite the Infrastructure Leasing and Financial Serv-
Source: Magicbricks.com luxury homes, according to Anuj
Puri have all the trappings of luxury
ices defaults, debt funds have given decent returns in
ment vehicle for business persons. opment risk. With the emergence but are not in established locations. the last calendar year. Both short-term and long-
Developers like Hiranandani of a new breed of self-made and Developers are leveraging lower term funds have returned between 5 per cent and 6
opine that slowdown in luxury flamboyant millionaires, develop- land values in suburban locations per cent. What is interesting is that in the last three
housing has been accentuated as ers, according to Jhunjhunwala, are in order to deliver a luxurious expe- months, returns from long-term funds have suddenly
builders have not been paying heed taking to bespoke luxury homes. rience to budget buyers. shot up to 7 per cent. Experts say that fund managers
to what the market wants. “As per And above all, as the luxury hous- are taking duration risks aggressively now. Investors
market feedback, we tweaked our ing market has turned end-user. Still a buyers' market: Since it is should, however, be cautious as there isn't a clear
models and offered 2-BHK boutique Going forward, what is the out- expected to be a buyer’s market for outlook on interest rates now.
homes in Hiranandani Gardens, look for luxury housing and does it the next 6-8 quarters, Jasuja sees
Powai, Mumbai and had good sales.” make a business sense to invest in good prospects. But things could DEBT FUND RETURNS
it? Kansal says that there are loyal change after that. As of now, one Debt 1W 1M 3M 1 Yr
New trends: The luxury housing customers of luxury projects should buy for self-use only. Puri Long Duration -0.29 2.43 7.12 6.40
market has been seeing other dis- including NRIs, businessmen, says that one should not expect
tinct trends in recent years. The CEOs, political figures, big farmers, exuberant profits in the short term Medium Duration 0.02 0.84 2.38 5.56
market has moved from investors and such like. Dutt of Tata Housing in the current market, though Short Duration 0.15 0.91 2.33 5.96
to largely end-users. Ankit Kansal, sees good prospects for luxury investors with a bigger budget and Ultra Short Duration 0.20 0.40 1.71 5.88
MD, 360 Realtors, says that most of housing, adding that with highest higher risk appetite for a long-term Liquid 0.14 0.63 1.82 6.89
the high-end buying is for end use. remittances and increasing billion- may invest in luxury housing. He Dynamic Bond -0.18 1.18 3.21 5.31
And since they have little appetite aires, luxury housing will witness advises going for a sound location
Corporate Bond 0.16 0.96 2.65 5.69
for risk-taking, they prefer ready- luxury housing taking a larger for future appreciation, checking
to-move units compared to under- share in terms of value in the com- the financial capability of the devel- Credit Risk 0.12 0.68 1.69 5.00
construction units to avoid devel- ing years. oper to avoid risk. Gilt -0.49 1.53 4.41 6.07
BUDGET: ~30 LAKH - ~50 LAKH
Realty check
Business Standard brings you a snapshot of average current rates and unit sizes in localities
note if the demand online clubbed with parents. But can that offer property in the price range of ~30 lakh-~50 lakh. If you are looking at buying real
shows 'transferred to the juris- we choose whom we should estate, an idea about prevailing rates would come in handy
dictional assessing officer', it club the daughter's income?
means your case is transferred A minor's income is generally Avg price (~/sq ft) Avg unit size (sq ft) Avg price (~/sq ft) Avg unit size (sq ft)
to a local officer. You then need clubbed in the hands of the par- JAIPUR VASAI-VIRAR
to visit the department and dis- ent (mother or father whose
Jagatpura 3,152 1,286 Virar (W) 4,572 829
cuss the case with the officer. total taxable income is higher)
for computing the total income Mansarovar Extension 3,376 1,161 Vasai (E) 4,892 758
My employer has negotiated a and taxes thereon. However, Ajmer Road 3,031 1,320 Virar(E) 4,998 764
cheaper rate for employees at a where the child is earning the MWC Road 2,835 1,382 Vasai (W) 5,845 691
club. Will this be consider as a income from an activity involv- INDORE
Gopalbari 6,419 518
perk and taxed? ing the application of his skill, Nipania 3,332 1,272
Perquisite is generally looked at talent, specialised knowledge or Vaishali Nagar 3,583 1,198
Airport Road 2,125 1,549
as a benefit/emolument flowing experience, the clubbing provi- Kalwar Road 3,250 1,285
from an employer to employee, sions do not apply. In such a Vijay Nagar 2,708 1,415
Sanganer 3,221 1,311 Sukhlia 2,859 1,362
directly or indirectly. This is in case, the minor child is required
addition to the regular to apply for a permanent MANGALORE Palda 2,487 1,439
salary/wages paid to the account number (PAN) and file Kulshekar 3,300 1,225 Bicholi Mardana 2,632 1,548
employee. From the limited his return separately. Rule 114 Shakti Nagar 3,430 1,164 VADODARA
facts available, it seems your of the I-T Rules, 1962, mentions Kavoor 3,260 1,100 Vasna Bhayli 2,381 1,575
employer is only acting as a that in case of a minor applying
negotiator in the transaction, for a PAN, documents of any of Surathkal 3,182 1,199 Harni 2,522 1,441
and the company is doing no the parents or the guardian of Bejai 4,535 827 Chhani 2,420 1,543
payment/reimbursement. If such minor will be deemed to Derebail 3,933 1,058 Bhayali Road 2,663 1,507
this is so, there is no perquisite be the proof of identity and
Kankanady 3,760 1,122 Sama-Savli Road 2,723 1,456
value since the company is nei- address. Hence, in your case, Gotri 2,527 1,458
ther making any reimburse- you can apply for your child's Urwa 3,825 1,150
Ajwa Road 2,503 1,529
ment to you for the expense PAN and accordingly sign her THIRUVANANTHAPURAM Atladara 2,411 1,621
incurred nor making any pay- return of income as a represen- Technopark 3,582 1,148
ment to the club on your behalf. tative assessee. Note
Akkulam 4,093 798 · Ticket price range considered for the above data points is between ~30 lakh
and ~50 lakh
My wife and I both are earning. The writer is partner and leader, Kazhakoottam 4,024 1,055
· All the data points discussed in the above table refer to primary market only
Our daughter earns money as a personal tax, PwC India. The views Sreekariyam 3,522 980 · Above residential data set comprises of residential apartments only
child model. I know there are expressed are the expert’s own. Send Peyad 4,050 1,040 · Above residential data is representative of organized real estate developers only
clubbing provisions and your queries to · The top performing micromarkets based on sales during last year (Nov-2017 to
children's earnings are yourmoney@bsmail.in
Vazhayila 3,777 1,140 Oct-2018) is represented on the above table
Thrikkanapuram 3,350 932 · Data points are updated till October 2018 Source: PropEquity
 MUMBAI | THURSDAY, 3 JANUARY 2019
Micromax’s South Africa play
Offeringbundled
productsandtargeting
bigretailwillbethe
keyplanksofphone
maker’sgrowthstrategy
SHUBHOMOY SIKDAR
S
martphone handset manufactur-
er Micromax, which announced
its entry into South Africa last
month, is positioning itself to cap-
italise on the mass migration of
users from 2G and 3G to 4G networks in that
country. To do that, the company is banking
on its partner Vodafone Global to make com-
pelling offers — combining attractive data
tariff, latest smart phone handset features
and affordable pricing — to the consumer. It
will also leverage the telecom giant’s well
groomed distribution network in the
Rainbow nation, say its founders.
Micromax co-founder Vikas Jain says
while the move is in line with Micromax’s
global expansion strategy — that involves
entering markets where its network partner
Vodafone is already present — the launch
was timed keeping in mind the fact that the
South African market today is at the same
stage where the Indian telecom market was
a couple of years ago, when it was transi-
tioning to the 4G bandwidth.
“4G’s successful adoption in India is one
of the experiences we want to take to that
market and use the lessons we learnt here
such as offering handsets with bigger dis-
plays, more memory and better battery back-
up which you need when you are browsing at
a higher speed,” says Jain. He says the con-
sumer will get a bundled offer — a Vodafone
SIM card and “probably a consumer offer”
will be thrown in with a Micromax handset.
“There is a keen intent of the operator to
migrate users on 4G because the cost of serv-
icing the customer on 4G is far lower than the
cost incurred in 2G and 3G. So the operator
achieves the migration, the user gets com-
pelling 4G devices which is an extra incentive
for migrating and for us it is customer acqui-
sition and brand development,” says Jain.
He, however, adds that Micromax has a
long-term strategy and is looking beyond
the partnership to achieve its targets. “The
devices will not be subsidised by Vodafone
which is specifically the process Vodafone
uses for their branded devices called
Vodafone branded devices and also the SIMs
won’t be locked to Vodafone. So, the go-to
SNIPPETS
Global trends
As the New Year rings in, global management
consultancy firm A T Kearney warns that
geopolitics will remain a key risk to the global
business environment in 2019. The A T Kearney
Global Business Policy Council’s Year-Ahead
Predictions 2019 report said the stressing factors
on the politics and trade among countries across
the world will be led by the intensification of the
US-China trade war and the strengthening of
Sino-Russian relations to counter US influence.
The authors also predict volatility in emerging
markets in 2019. “An emerging markets credit
crisis will be spurred by high levels of foreign-
denominated debt, currency depreciations, and
the continued rise of US interest rates,” said the
founder and chairman of the Global Business
Policy Council Paul Laudicina. Among the other
key predictions that the report makes are Bitcoin
leading the consolidation and maturation of the
cryptocurrency market, innovations in waste
management, global anxiety epidemic leading
to a proliferation of new products and a looming
emerging markets credit crisis growing in both
scale and scope.
Stable outlook
AccordingtocreditratingagencyICRA,thecredit
profileofIndianITservicescompaniesremains
stableunderpinnedbyitsabilitytosustainfree
cashflows“despitepressureonrevenuegrowth
andmargins.”ICRAstudied13leadingIndian
companiestocomeupwiththeoutlookandsaid
thatthefreecashflowgenerationabilityofthe
companieswillnotbeimpactedbythestressful
factorscitedabove.Thecreditprofileisalso
supportedbynetcashpositionwithsignificant
liquidityintheformofsurplusinvestments
generatedoutofpastcashflows,itsaidina
statementrecently.Despitethestableoutlook,
ICRApredictsthatthegrowthofthesecompanies
willbeimpactedbylowerdealsizesindigital
technologies,cloudadoptionandhigh
competitiveintensityfromlocalaswellas
internationalplayers.
Micromax is betting on offering handsets with bigger displays, more memory and better battery back-up to win over new consumers
market for us will still be open,” he says.
In terms of the purchasing power, the
South Africa market is similar to India but
distribution is a little different. Offline sales
are concerned, it is very concentrated and
almost 80 per cent of the sales are made
through big retail stores like we have Croma
or Reliance Digital in India. But this is both
an opportunity and a challenge, Jain said.
“There is a small portion of the smaller
mobile stores but a bulk of the market is con-
trolled by power retail as we call it. That
means we don’t have to establish a new rela-
tionship with 800 or 1,000 new shopkeepers
in a region and can establish with four but
then you have to also understand that the
whims and fancies of these four and the fact
that they are used to their own scale.
Acceding to their requirements each time
will also be difficult. But being a brand helps
both as the seller would also
like to sell a branded
The operator is keen to move users to 4G because
the cost of servicing the customer on 4G is far lower than
the cost incurred in 2G and 3G”
VIKAS JAIN
Co-founder, Micromax
STATSPEAK
MAKING A COMEBACK
The expected adoption of automation and artificial intelligence in the
marketplace means ability to learn quickly, adaptability and creative
thinking will become key differentiators in the coming years. For
employers, the winds of change means solely relying on new workers
entering the labour market with the right ready-made skills will no longer
be sufficient and they will have to re-skill the existing workforce. But what
about those, especially women, who are looking to restart? How can
re-skilling help them harness the opportunities? Some answers:
MY BEST CAMPAIGN
Staying ahead of
the curve
MY TAKE
Technologyreally
broughtaboutahappy
marriagebetween
creativityandrelevance
device,” says Jain.
The company will meet some familiar
foes in the new market — the Chinese com-
panies that have performed well in the mid-
market segment in India. It is no secret that
Mircomax has felt the heat at home in a big
way with the entry of these companies – be
it market leader in India Xiaomi or Vivo or
Oppo and even from established Korean
player Samsung. For Micromax, the revenues
started falling after 2014-15, when it was an
all-time high of ~10,450 crore. That in 2016-
17 was 46 per cent lower, at ~5,610 crore.
For Jain, the main competitors in
Micromax’s new market are many of these
Chinese companies although Xiaomi does
not have a strong presence in there. There
would be other competitors too. In
September last year — three months before
Micromax’s announcement — global mar-
ket intelligence firm International Data
Corporation had reported that numerous
BRAND: Piramal
Healthcare
YEAR OF LAUNCH: 2017
AGENCY: LOGICSERVE
DIGITAL
STRATEGY 15 <
GUEST COLUMN
Brands, products
and politicians
Muchlikeashopperinasupermarket,voters
lookforthebrandnametheyknowandtrust
I
n politics and in the market- In politics, the strategic options
place, there is an endless parade are quite evident. Some candidates
of new products each year. focus on their own qualifications
These introductory products go and experiences (individual brand-
head-to-head with the established ing). Alternatively, some candidates
products in growth, maturity and hope to get elected solely on the
decline phases. strength of their association with a
Similar to the world of politics, given political party (family brand-
consumers vote with their rupees ing). The problem is, regardless of a
or dollars in the marketplace. In the candidate’s emphasis, consumers
last elections in India, many people do consider the family brand as a
voted a straight party symbol. criterion in their decision-making.
Political pundits undoubtedly took This holds true in the market-
this as an evidence of the electorate’s place as well. You can call it an
lack of knowledge or interest in the Indica, but we all know it is a Tata.
political process. And, with it comes the
However, the elec- associated initial
torate is quite smart to teething problems.
realise the cost Our past experiences
involved in terms of with a given brand are
time and effort in eval- often generalised.
uating every candi- Hence, for both,
date for every office on candidates and prod-
every salient attribute. ucts, family branding
Candidates are made is a double-edged
new entrants to the South African market up of bundles of sword. If a consumer
are now offering affordable smartphones attributes, as are any likes a particular
that boast very similar features to the lead- other products. Much SHANKAR SHINDE brand of ketchup, he
ing brands. Ajay Gupta, lead partner, com- like a shopper makes Managing partner, or she is more likely to
munication media and technology prac- choices in a crowded Geometry Encompass purchase the same
tice, A T Kearney, doesn’t name Micromax supermarket aisle, vot- brand’s cooking paste?
but reckons it would be difficult for any ers look for the brand Conversely, if the
Indian brand to make a mark in an overseas name they know and trust. consumer dislikes the ketchup, the
territory even if it has similarities with the This could be a sign of low- likelihood of him or her purchasing
Indian market. involvement or habitual decision- that brand’s cooking paste reduces
“Few Indian players focused on making. But what is so terrible with significantly. Therefore, politicians
research and development; many took brand loyalty? All the major politi- should be like guardians if they are
advantage of a certain wave of growth cal parties spend a great deal of concerned about the perceived char-
which they are trying to do now in South time, effort and money building acter of their political party, the rep-
Africa. When consumers are looking for brand equity. Then, lo and behold, utation of their shared family brand.
value for money, if you give them the right when it actually works, it is ren- Voters and consumers learn
mix of features and pricing, it will not be dered as voters’ lack of intelligence and associate brands with mean-
difficult to acquire. But remember what- or motivation in making an ings. Consumers have limited
ever you are trying to do, the Chinese are informed choice. resources. The brand name serves
willing to go deeper,” says Gupta. Of all the decisions made in as an easy surrogate for all the oth-
Micromax’s Jain doesn’t agree with introducing a new product, the er dimensions of a product or a
Gupta’s assertion that players such as most important may be that of the candidate. Who remembers all the
Micromax are looking for markets abroad brand name. Does one focus on an claims companies and politicians
as expanding in Tier 2 and Tier 3 cities in individual brand name or a family make, anyway? But they do
India is becoming difficult. “Micromax has brand name? The latter may remember the family brand name.
been in the international territory for already be loaded with meanings So what is the moral of this cau-
the past eight years and I don’t see that as a and associations and its use will tionary tale? You need not “beware"
recent phenomenon,” says Jain. have obvious consequences on family branding, but you best “be
marketing strategy. aware” of family branding.
More on www. business-standard.com
20 mn
HOW DOES RESKILLING IMPACT YOUR CAREER RE ENTRY?
The number of Indian women
who quit jobs between 2004
and 2012, according to a
World Bank study
65-70% 22% 36% 26% 16%
Compensates my Gives my career Helps me attend Increases my
Those who never return to career break a jumpstart interviews with market value
work after quitting once confidence
WHAT KIND OF RESKILLING WHAT IS THE BEST WAY TO
24%
ARE YOU LOOKING AT? RESKILL YOURSELF?
Women who said outdated Figures in % Figures in %
skills are the biggest Technical skills By taking
deterrent (eg) data analysis 36 online courses 30
Soft skills (eg) By attending
31 13
34%
Women who called
communication
Confidence-building
offline workshops
By doing an
re-skilling as a necessity for (eg) career coach
22 internship
28
their career restart
Expert services (eg) By
resume writing
11 volunteering
29
Source: JobsForHer
SANGEETA TANWAR threepeopleinourcountrysuffered remediesforkids,retailinvestors,
fromallergykisardiasweareexposedto besidesnews,finance,parentaland
Which do you consider your best particlepollutionawhopping12to19 health-relatedsites.Wealsoleveraged
campaign and why? When was the timesthepermissiblelimit.Our highintentsearchesaroundcommon
campaign launched? lifestyles,especiallyforworking symptomsandtooktheusersto
In retrospect, our best work in terms of professionals,haveledustospenda StopAllerG’sblogstoeducateandcreate
impact and outcome is reflected in our significantportionofourdayonthe awarenessabouttheremedies.
campaign for Piramal Healthcare’s roads.Evenatourhomes inmetros,we
StopAllerG. Providing a creative areexposedtoever-increasing What did the campaign achieve for
rendition to an OTC product to cure pollution.Wewantedtoposition the brand?
nasal allergy was no joke. We delivered StopAllerGasthe“quicksolution”inthis Thereachofthiscampaignwas
this piece of work in March 2017 and contextandsetoutto phenomenal.Thereal-
consider it sharp since it involved generatebrand timebannersreacheda
focused problem solving, precise awarenesstocreatetopof totalof15million
targeting and ahead-of-the-curve mindbrandrecall. We potentialconsumers.
technological intervention – all the key installedreal-timeanair Wesaw68percent
ingredients for a successful campaign. qualityindexthat engagementfromNew
We were able to wake India up to the appearsasbanneradson Delhialone.Awhopping
level of air pollution in key metros, websites.Wemovedaway 62.7percentofthe
show people how that affects their well- fromroutine,static engageduserswere
being and provide a quick and effective bannersandboostedour womenandmillennials
solution for the same. The link between digitalefficiencyby fromthe18-44age
environmental and public health leveragingDoubleClick group.Technology
concerns is strong, and our campaign toservetheseintelligent reallybroughtabouta
also sought to appeal to this more deep- ads.Programmatic happymarriage
seated issue as well. bannersfetchedair PRASAD SHEJALE betweencreativityand
qualityindexoftheuser’s co-founder &chief relevance.
Didyouconductanyconsumer locationonareal-time executive officer, Theseveralawardswe
researchbeforelaunchingthe basis.Weoptimisedthis Logicserve Digital receivedforthis
campaign?Whatwasthekeyidea
behindthecampaign?
campaignduringDiwali
throughamobile-basedinteractive
particularcampaignat
prestigiousplatformsareatestamentto
Wewentthrougharigorousprocessof bannertoreinforcethebenefitsof theindustryresponse.Wehavereceived
studyingthiswidelyprevalentand StopAllerGacrossNewDelhi, atotalofeightawardslastyearat
infamoushealthconcerncalledthe Bengaluru,Hyderabad,Kolkata, renownedforumslikeIndianMarketing
commoncoldandunderstoodthatin Mumbai,Chennai,Pune,Lucknow, Awards,CDOConverge,Driversof
India,pollutionisemergingasoneofthe Agra,Ludhiana.Wedisplayedthe DigitalAwards,TheMobby’sandsoon.
keyreasonsthattriggerit.Toour bannertoofficegoers,dailycommuters,
astonishment,wefoundthatonein studentsandmotherswholookedfor More on www. business-standard.com
16 BRAND WORLD
>
MUMBAI | THURSDAY, 3 JANUARY 2019

Brands tress up for

the beauty boom
Haircaretrumpsthelistasurbanconsumersbitethe
premiumbaitandentry-levelproductsfuelruralgrowth Indian hair care industry is
(Clockwise from top): The booming hair care
market has led brands such as Pantene from P&G,
Nihar from Marico and Indulekha from HUL to
come up with innovative premium extensions
for the urban consumer
T E NARASIMHAN
Chennai, 2 January spend three times as much on
hair care products as those in
CROWNING GLORY
estimated at ~ 22,500 crore
($3.3 billion)
The premium segment has
seen between 1.3-1.6 times
growth as compared to the
overall hair care category
Hair ranks #1 as the aspect
that defines beauty
among both men and
women in India
One of every two rural
consumers is seeking
entry-level hair
nourishment products,
resulting in the rural
market contributing 54%
to the segment
Source: Nielsen
Marico, another big brand
that has been associated with
hair care through its hair oil
and claims a 34 per cent of the
volume market share at an all
-India level in the value added
Both urban and rural mar- hair oils segment through its
kets are participating in the brands Parachute Advansed,

I
n the big gold rush that
the Indian beauty indus-
try has spawned in recent
years, hair care has found its
way to the top of the charts
with global and national
brands expanding their port-
folios and widening their dis-
tribution platforms in the cat-
egory. Big brands such as
P&G, Marico, HUL, Cavinkare
have launched special prod-
ucts to capture the premium
end of the market in urban
India while offering
affordable entry-level exten-
sions for first time users in
small towns.
The hair care industry has
evolved to a base of ~22,500
crore according to a report by
Nielsen India titled, “The
beauty market is letting its
hair down”. Categories oper-
ating in the business have
experienced a 9.6 per cent val-
ue compound annual growth
TENDER CARE Commercial Feature rate (CAGR) and new-age seg-
ments have championed this
growth; compared with the
NMDC Scientist Awarded Doctorate Allahabad Bank: Launching of 24 x 7 Helpline Number overall hair care industry, col-
orants are growing at 1.5 times
Sdoctorate
hri G. Venkateswara Rao, Deputy General
Manager (Mineral Processing) was awarded Bunfurlank have launched 24 x 7 (365 days) Contact Centre on 26.12.18 with
the sole objective to enhance Customer service and subsequently
new business avenues. The Centre will provide information to the
and conditioners are growing
at 1.2 times, the report added.
by JNTU College of Engineering,
customers regarding: General and account related queries on products While demand for hair
Hyderabad for his thesis "Studies on Process
& services of the Bank and third party products. Enquiry on basic bank- care products is increasing in
Feasibility and Production of Pellet grade con-
ing services and transactions. Complaints and Service Requests. both rural and urban markets,
centrate from Sub Grade Iron ore". The
Queries on internet, Mobile Banking, SMS & Tele Banking, UPI, BHIM. urban consumers have proven
research was guided and supervised by Prof. R.
ATM / Debit Card specific queries and complaints. Initially, the Centre to be more extravagant. They
Markandeya, Principal, JNTU College of
Engineering, Manthani, Kareem Nagar District.
All the research work was carried out at
Research and Development Centre, NMDC Limited located at Habsiguda
> THE BS CROSSWORD
which is recognized as "Centre of Excellence" by UNIDO in the field of
Mineral Processing. In this research Sub Grade Iron ore of 40.80% Fe,
40.90% SiO2 was up graded by beneficiation using Gravity separation
(Spiral concentrators) and Enhanced Gravity separation (Multi Gravity
Separation) methods. A final concentrate of more than 65% Fe, 3-4%
SiO2 could be produced with a recovery of 32% by weight using spiral
concentrator and 38% by using Multi Gravity Separator.This iron ore con-
centrate will be further used to make pellets to feed to Blast Furnace to
make Pig Iron / Hot metal which will be further used to make steel. More
than 15 research articles were published by Shri G. Venkateswara Rao in
National and International Journals and more than 35 article in National
and International Conferences / Seminars / Workshops in this area. will be operated in Hindi, English & Bengali. However, in future the Bank
plans to introduce other languages viz. Odia, Punjabi & Marathi. The ded-
The New Year brings new hope for MSMEs in Maharashtra icated number for the Contact Centre is 1800-57-22-000.
rural areas and have moved
beyond basic hair care prod-
ucts. “Trade channels are rid-
ing on this momentum, as
chemists in urban areas are
stocking more problem-solv-
ing and styling products,” says
the report. Rural consumers
are on the other hand seeking
entry level hair care products.
“We invest continuously in
problem solving products that
address urban consumers'
individual needs and there-
fore launched products like
Pantene Oil Replacement, a
multi-purpose hair product
for the urban consumers and
Head & Shoulders 2-in-1
shampoo with conditioner,”
said a P&G spokesperson.
However, rural remains a pri-
ority market for it and hence it
will continue to innovate and
offer competitive proposition
based on the consumer needs.
The rural market
contributes 54 per cent to the
segment, the urban 44 per
cent, the report noted.
Nourishment and mainte-
nance products account for
around 48 per cent of the mar-
ket, followed by problem solu-
tions brands contributing to
41 per cent of the hair care
market. Styling contributes to
11 per cent of the market,
according to the report.
growth of hair care segment,
with rural through more pen-
etration and sachets while the
urban market is growing in
terms of premiumisation,
upgradation to larger packs
and a lot of innovation in the
category, says Gayatri Kabilan,
group brand manager at
CavinKare, FMCG Marketing.
She says that the consumers
within a family have become
more brand conscious; there
used to be one brand per
house, now there are different
brands used by the family
members in the same house.
Premiumisation is a clear
avenue for growth in the hair
care industry with the current
growth of the premium seg-
ment is between 1.3 and 1.6
times as compared to overall
hair care category, says the
report. The way consumers
engage with the product is
also changing. “Earlier people
in urban areas used to have a
two or three step routine like
hair oil, hairwash and hair
color. But more steps are get-
ting added now. Conditioners
and hair style products are
coming in. In rural India it is
still a two-step process.
Companies are also looking at
bagging the long term con-
sumer through bigger packs,”
Kabilan said.
20 Depressed, following flaw
in the enforcement of
regulations (9)
23 British non-rigid airship? (5)
25 Turns to an arrangement
with credit (2,5)
26 Hard worker becomes king
later (7)
27 Hum some lines, omitting
nothing (5)
28 Girl, it's clear to see, may
be cut up (9)
DOWN
Nihar Naturals and Hair &
Care, says that the company
is focused on expanding its
hair care play through dis-
tinctive and premium innova-
tions that solve unmet con-
sumer needs. Marico’s most
recent introduction, True
Roots Botanical Hair Tonic,
promises to delay early grey-
ing by increasing the melanin
levels in the hair roots.
“The company aims to
grow hair oil volumes in dou-
ble-digits over the medium
term, on the back of growth
in the core portfolio, driving
premiumisation and scale-up
of new launches, while also
increasing penetration
through low unit packs at the
bottom of the pyramid,” said
a Marico spokesperson. The
company also believes that
the opportunities in hair care
today spell big business even
for relatively under-leveraged
sub segments. While new
brands and products launch-
es could improve the market,
the success stories are limited
to just a few and the brands
can transform the stagnation
in the categories by identify-
ing sub-segment opportuni-
ties within larger segments,
says Dinesh Kapoor,
managing director, Nielsen-
South Asia.
# 3237
13 Take a short route to slice in
two (3,6)
14 Was behind — or kept up (9)
15 A bedstead smashed by
down-and-outs (9)
17 After quiet, disconcert with
chatter (7)
19 Be successful in race getting
dole for washing-machine
(4-3)
21 Look at last and run back
with some to make grooves
in them (5)

POWERGRID Jabalpur Transmission successfully 1 Bit of Holland on the shelf,

perhaps (5)
commissions ‘Transmission System Strengthening 2 T-bar gig for Con? (4,3)
associated with Vindhyachal-V’ 3 He likes to have a good
black face to work on ! (4-5)
22 Semi-desert area, say, in
western half of Nevada (5)
24 Describeingrammaticalterms,
'In the morning, Gaspar set
up the standard' (5)

PTariffsidiary
OWERGRID Jabalpur Transmission Limited, a 100% wholly owned sub-
of Power Grid Corporation of India Limited, secured though
Based Competitive Bidding (TBCB), has successfully commissioned
4 Relating to Hindu
philosophy and found in
five dictionaries (5)
SOLUTION TO #3236

ACROSS get stuck into things (2,3)

the Vindhyachal Pooling Station – Jabalpur Pooling Station 765 kV Double 12 Caring about the dog or cat, 5 Making one of those
Circuit Transmission line. The project is part of the Transmission System 1 Itshouldensurethatevenifthe
has suitable floor material (9) money-spinners, perhaps (9)
Strengthening associated with Vindhyachal-V and has been established book is colourful, its clean (4,5)
13 Meat cured, as is bacon (9) 6 Loud sound of bass — real
I2,Industries
MC Chamber of Commerce and Industry signed an MoU with the on Build, Own, Operate and Maintain (BOOM) basis.The transmission sys- 6 Joins many in cans (5)
15 A bit of a hand one's given? (5) agony (5)
Department of the Government of Maharashtra, on January tem is put under commercial operation with effect from 1st January, 2019. 9 Beast of a man with
16 Again knock up, though it's 7 O, there's no way to start
2019 whereby IMC will provide a platform for Small and Medium The 765 kV D/C transmission line is one of the longest transmission lines American mate (7)
not a match (5) the object (7)
enterprises in Maharashtra to resolve problems faced by them. Speaking comprising more that more than 750 circuit km.The line traverses through 10 Row about the second (7)
seven districts in the state of Madhya Pradesh. Despite severe Right of 18 Quietly joining a patrician 8 Brisk, with good reason,
on the occasion, Mr Subhash Desai, Hon Minister for Industries and 11 Japanese Commander had
Mining, said that Maharashtra has been rated at the top amongst the Way and hindrance by miscreants during the construction, the transmis- set without a great show (9) following latest odds (9)
no love in the morning to
various States for manufacturing according to a recent survey, but he sion line was successfully commissioned with the meticulous coordination
does not want to stop at that. The Government would like to ensure that with all stakeholders including support from the administration. The proj- Very easy: >
start-ups and businesses facing challenges that could lead to eventual ect was reviewed by Hon’ble Prime Minister under PRAGATI and also fol- > BS SUDOKU # 2651
WEATHER TODAY’S FORECAST
Solution tomorrow
sickness, be helped in as many ways as possible be it Government policy, lowed up by regular monitoring by PMG/PMO and Ministry of Power for
O
Max/min temperatures in C
timely access to finance, skills, etc. to help them succeed. its commissioning. The transmission system facilitates supply of power NATIONAL
with reliability & security and more than 2500 MW power flow has been HOW TO PLAY
Ahmedabad . . . . . . . . . . . . . . . . .Sunny 30/12
recorded on commissioning of the Transmission line. Beyond Jabalpur Fill in the grid so that every
Aizawl . . . . . . . . . . . . . . . . . . . . . . . .Sunny 20/06
Pooling Station, dispersal of power is through existing/planned transmis- row, every column and
Bengaluru . . . . . . . . . . . . . . . . . . .Sunny 28/11
sion network under Inter-State Transmission System. every 3x3 box contains the
Bhopal . . . . . . . . . . . . . . . . . . . . . . .Sunny 26/10
digits 1 to 9
Chairman SAIL emphasizes Safety and Volume as Bhubaneswar . . . . . . . . . . . . . . .Sunny 29/13
Chandigarh . . . . . . . . . . . . . . . . . .Sunny 20/07

the priorities for the New Year Chennai . . . . . . . . . . . . . . . . . . . . . .Sunny 28/22

Delhi . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Fog 22/07

TSGENCO staff greeted new year wishes to Sri
D.Prabhakar Rao, Chairman & Managing Director,
TSGENCO & TSTRANSCO at his residence.
K. Venkateswarlu, CGM, Chandra Prakash, SE, MD.
Fasiudddin Feroz, Deputy Manager(HR) /PR and other
staff of TSGENCO are also present.
SOffice,teel Authority of India Limited (SAIL), the largest Public Sector Steel
Company, celebrated the New Year at a function held at its Corporate
New Delhi today. Speaking on the occasion, Chairman, SAIL, Shri
SOLUTION TO #2650
Guwahati . . . . . . . . . . . . . . . . . . . .Sunny 23/12
Hyderabad . . . . . . . . . . . . . . . . . . .Sunny 31/14
Imphal . . . . . . . . . . . . . . . . . . . . . . .Sunny 22/07
Anil Kumar Chaudhary, conveyed his good wishes to the SAIL employees Indore . . . . . . . . . . . . . . . . . . . . . . . .Sunny 26/11
and their families. Recalling the events of the past year, he mentioned that Kochi . . . . . . . . . . . . . . . . . . . . . . . . .Sunny 33/20
Year 2018 was the turnaround year for the Company in terms of prof- Kolkata . . . . . . . . . . . . . . . . . . . . . . .Sunny 26/12
itability and praised employees for their contribution in various achieve- Lucknow . . . . . . . . . . . . . . . . . . . . .Sunny 23/08
ments of the Organisation during the Year. Addressing the SAIL Collective, Mangalore . . . . . . . . . . . . . . . . . . .Sunny 33/20
he said that SAIL Plants/Units have to gear up for challenges ahead and Mumbai . . . . . . . . . . . . . . . . . . . . . .Sunny 31/21
take steps befitting the stature of the 'Maharatna' Company and move it Pune . . . . . . . . . . . . . . . . . . . . . . . . . .Sunny 32/14
to even greater heights. He emphasized safety, higher volumes, quality Srinagar . . . . . . . . . . . .Rain and snow 05/-6
and cost reduction as the mantras for sustainable growth. Surat . . . . . . . . . . . . . . . . . . . . . . . . . .Sunny 33/17
Thiru’puram ...........Mostly sunny 33/23
.
MUMBAI | THURSDAY, 3 JANUARY 2019
Mall of discounts
Paytm Mall, the newest entrant in e-commerce, has set its
sights on $10 billion in revenue by March. But the question is
not whether it will reach its goal, but how it will do so
YUVRAJ MALIK
Bengaluru, 2 January
P
aytm Mall may have been a late entrant in
the country’s e-commerce market but it
has instantly made a splash, carving out a
niche for itself in the midst of a broader
transformation in the industry.
CarvedoutofparentOne97Communication—
mobile wallet Paytm’s parent firm —and launched
as a separate business unit in February 2017, it is
now the putative number three in the industry
after Amazon and Flipkart.
In 2018, sales for Paytm Mall grew over 100
per cent over the previous year, according to mul-
tiple analysts. Company filings show revenue of
~775 crore in the financial year 2017-18, up from
~13.6 crore the year before, when it recorded only
two months of business.
All this growth has come even as the e-com-
merce market moved towards a duopoly domi-
nated by Amazon and Flipkart, at the expense of
smaller players like Shopclues and Snapdeal.
“It’s been a great year for us— the business
grew in all respects,” says Amit Sinha, chief oper-
ating officer at Paytm Mall.
Of course, many things are going for Paytm
Mall. It has the backing of Paytm’s 200-mil-
lion-strong user base and deep pocket to begin
with. Paytm contributed 800 personnel, includ-
ing top executives, and investors old and new
have pumped in $650 million into the new unit
so far. This money fuelled the massive dis-
counts and cash-back offers, a highlight of its
initial period when it took in new user at a
break-neck pace.
But while there has been break-away growth,
challenges remain around its unique business
model and a viable long-term strategy to com-
pete against Amazon and Flipkart, which
together hold 76 per cent of the market.
Sinha, however, says Paytm Mall is on solid
ground because its growth has been driven by
users rather than GMV, or gross merchandise
value, the widely accepted measure of growth in
the industry.
“Our growth has been higher in terms of users
as compared to the growth in GMV. We are early
INDUSIND BANK LTD.
Regd Office: 2401 , Gen.Thimmayya Road, Cantonment, Pune – 411 001.
Secretarial & Investor Services : 701 Solitaire Corportate Park, 167 Guru Hargovindji Marg, Andheri East, MumbaI – 400093
NOTICE FOR LOSS OF SHARE CERTIFICATE(S)
Notice is hereby given that the certificate(s) of IndusInd Bank Ltd. for the under mentioned securities are stated to have been lost
or misplaced and the registered holders/Purchaser have applied to the Bank for issue of duplicate Share certificate(s)/Transfer of
Shares. Any person who has /have a claim(s) in respect of the said security(ies) should lodge such claim(s) in writing with R & T Agents
of Bank viz. Link Intime India Pvt Ltd. C- 101, 247 Park, L.B.S. Marg, Vikhroli West, Mumbai – 400083 within 15 (Fifteen ) days from this
date else the company will proceed to issue duplicate certificate/Transfer of shares without further intimation.
Sr Name of the Registered
Shareholder
1 LAJWANTI GOPALDAS KALRA
GOPALDAS TIKAMDAS KALRA PHULA YUVRAJ SHINDE 904489
Mumbai January 2, 2019
in our life cycle, so our focus has been on growing
transactions,” Sinha told Business Standard in
an interview.
Sinha did not disclose the sales numbers or
customers the platform serviced, but maintained
that Paytm Mall was on target to achieve an annu-
alised sales of $10 billion
(approximately ~70,000 crore
at Wednesday’s exchange rate) INDIA ONLINE
by March 2019. Paytm Mall E-COMMERCE IN 2018
may be on course to achieve
this target, but what is of con-
cern is how it will choose to
$20 bn
reach this point—not whether Total sales
$16.2 bn (76%)
it will, say analysts.
“Paytm reminds me of
Snapdeal in its early days
Share of Amazon and Flipkart
when it was known for offers
and deals. It’s a simple model
—utilise the massive funding $4.8 bn (24%)
from VCs to power deals and Share of Paytm Mall and others hooked to a third one. That’s
discounts in the hope that cus-
tomers who come in will stay
on,” says Karthik Srinivasan, a SHARE OF MOBILE PHONE
digital strategy consultant. IN REVENUE
“Deals and discounts, how- Paytm 36
ever, do attract customers, but
to stick to a store, customers Industry 50
look beyond deals —service, Source: RedSeer Consulting
predictable delivery, range of
options, after sales, including returns and so on.
ThesearenotsomethingthatPaytmMallisknown
for at this point.”
As things are, he says, Paytm is paying cus-
tomerstobuyproductsfromitsonlinestore.“Even
in their offline-to-online model powered by QR
Name of the applicant Registered Certificate Distinctive No’s
Folio No. No.
163853 173160784 173161783 1000
For INDUSIND BANK LIMITED
Authorised Signatory
TAKE TWO 17 <
codes, the reason a customer opts for them even
when she is shopping offline is the extra value NASAspaceprobe
‘phoneshome’in
they seem to be getting in the form of upgrade in
flight tickets, cash-backs and so on.”
“In essence, Paytm (Mall) is quite literally
paying customers to buy from their online
store. That doesn’t seem like a sound business
strategy, but for a company that is so incredi-
landmarkmissionto
bly funded, this may seem like something they
can keep on doing for quite some time,” solarsystem’s edge
Srinivasan adds.
Unlike Amazon India and Flipkart, Paytm REUTERS
Mall does not operate large warehouses or logis- 2 January
tic operations, (uses only third-party services)
and boasts a wide network of kirana stores and NASA’sNewHorizonsexplorersuccessfully“phoned
regional suppliers on its platform. home”onTuesdayafterajourneytothemostdistant
Being asset light, “we are more capital effi- worldeverexploredbyhumankind,afrozenrockat
cient than anybody else,” Sinha says. But with theedgeofthesolarsystemthatscientistshopewill
the platform relying solely on partners for pack- uncoversecretstoitscreation.
aging, fulfilment and delivery, it runs the risk of The nuclear-powered space probe has travelled
trading off quality for a simpler business mod- 4 billion miles (6.4 billion km) to come within 2,200
el, multiple analysts point out. miles (3,540 km) of Ultima Thule, an apparently
But it does have its strengths. It has brand peanut-shaped, 20-mile-long (32-km-long) space
recall in non-metros and its revenue across rock in the uncharted heart of the Kuiper Belt. The
product categories is more widely spread. Paytm belt is a ring of icy celestial bodies just outside
Mall gained early traction by offering the best Neptune’s orbit.
price on high-selling items like Apple Macbooks Engineers at Johns Hopkins Applied Physics
and iPhones. However, its category split is, in Laboratory in Maryland cheered when the
fact, better than others. Its reliance on mobile spacecraft’s first signals came through the
phones, a category that typically makes for 50 National Aeronautic and Space Agency’s Deep
per cent of sales on any other platform, is only
35 per cent, RedSeer Consulting data shows.
Sinha says categories like grocery, fashion,
electronics are picking up as well. The compa-
ny is reportedly in talks with Future Group to
buy a larger stake in Future Retail, the opera-
tor of Big Bazaar and More supermarket chains.
If the deals go through — Amazon is also
reportedly a bidder in the negotiations — it’ll
give Paytm Mall a sizeable supplier network
where the Future Group supermarkets may
serve as its stock keeping and
fulfilment units.
The Paytm group’s core New Horizons embarked on a journey towards the
strengths are its formidable
network, a wide array of serv-
solar system’s edge in 2006 to study the dwarf
planet Pluto and its five moons
ices all the way from travel
booking to mobile recharge to Space Networkat10:28am. “Wehaveahealthy
wealth management services, spacecraft,”MissionOperationsManagerAlice
and an enduring acceptance Bowmandeclared.
in tier II, tier III and even Thespacecraftwillpingbackmoredetailed
smaller regions. imagesanddatafromThuleinthecomingdays,
A user who may come in NASAsaid.
for one service may get intro-
duced to another, and may get
LaunchedinJanuary2006,NewHorizons
embarkedonits4billion-milejourneytowardthe
solarsystem’sedgetostudythedwarfplanetPluto
the network effect it is hoping anditsfivemoons.
to bank on, says Pinakiranjan “Lastnight,overnght,theUnitedStates
Mishra, partner and national spacecraftNewHorizonsconductedthefarthest
(In %) leader for retail and consumer explorationinthehistoryofhumankind,anddidso
products at EY. spectacularly,”NewHorizonsprincipalinvestigator
“They have a relationship AlanSterntoldanewsconferenceattheJohns
with the consumer because HopkinsfacilityinLaurel,Maryland.
they are one platform where AnimageofThule,sentovernightandbarely
you can pay telephone bill, moredetailedthanpreviousimages,deepensthe
buy insurance, or movie tickets. Similarly, they mysteryofwhetherThuleisasinglerockshapedlike
have a relationship with the trader, or retailer, as anasymmetricalpeanutoractuallytworocks
mostly all of them have Paytm enabled. So it orbitingeachother,“blurredtogetherbecauseof
has trust and usability on both sides. That’s their theirproximity,”Sternsaid.
network, and at this point, they are figuring out Duringa2015fly-by,theprobefoundPlutotobe
how to leverage this network,” says Mishra. slightlylargerthanpreviouslythought.
No of
Shares
Sd/-
Rameshwar Media
DSIMS organized TOUGE 2018: LEVERAGING DISRUPTION
D
SIMS organized a Marketing conclave with
the theme of - Touge '18. The conclave
started with a welcome speech by the
Convener-Professor Ruchika Shokeen wherein
she introduced the audience to the theme
"Leveraging Disruption". The panel of speakers
consisted of a variety of extremely skilled indus-
try experts. Mr. Amit M. Abhyankar, Sales Head
CRS, Wipro, Ms. Rachna Dhaka, SP Marketing
Head-India & SAARC, CISCO, Mr. Rajeev Kumar,
Sr. VP-Market Development South Asia, Master
Card, Mr. Sanjay Banerjee, CEO, Digital
Advertising Tech Company, Mr. Ravikant Banka,
Founder & CEO, Eggfirst Advertising Agency, Mr.
Manoj Verma, Business Head and Product Manager, net in dependable amounts, it would be better for com-
Lyra Network. The panel discussion was led by Dr. C. panies to embrace the opportunity rather than miss the
Babu, Director, DSIMS. It consisted of an in-depth dis- bus, else the business could meet the same fate as
cussion about the disruptions in their industry and how Nokia and BlackBerry. Change is a factor which is
they are leading the business and marketing hemi- required to be carried out with a sledgehammer as it's
sphere into a state of volatility. This further included the people and organizations that need to show the
talks of disruptions such as online payments, rise in ver- results. The fastest growing firms have to find opportu-
nacular media content and viewership as compared to nities at every turn, taking market challenges head on,
western media, the Cloud Era, 3D printing of cars, and transforming them into competitive advantages.
VUCA, Machine Learning, Automation, etc. Disruption must be embraced-not merely managed-to
The conclave concluded with a brief discussion on drive growth and differentiation. The event was con-
how to manage such changes. As there is an uncon- cluded with the vote of thanks by Professor Dr.
trolled proliferation in the way people access the inter- Chandrasekhar Kaushik.
HULT edition India at SIMSR
O
n 17th December, SomaiyaVidyavihar
was a part of United Nations Hult
prize for 2019. "Pathfinders, the
Entrepreneurship cell of SIMSR with Dr.
Radha Iyer's mentorship, took charge of the
campus round", said the campus director,
Tina Jain.The pressing social challenge to be
addressed was, 'How will you create 10,000
jobs if you were given 1 Million Dollars?'.
With 11 teams competing for the top spot in
the final round, team Rescue, consisting of
Sameer Suri, Promit Ghosh, Vedant
Kalyankar emerged triumphant with their
idea primarily addressing disaster manage-
ment after withstanding the expert scrutiny
of its esteemed judges, Ms. Anusha
Ramanathan, Ms. Aparna Kulkarni-
Gowande, Ms. Asha Bhatia and
Mr. Abhishek Barari.
18
>
MUMBAI | THURSDAY, 3 JANUARY 2019 1

UN raises questions on AftermidairNewYear,

SpiceJetlandsintrouble
India’s forest cover data
India submitted data to access funds meant for climate change, but it lacked transparency, clarity
DGCA issues notice to the private airline after video
of onboard celebration appears on social media
ARINDAM MAJUMDER
New Delhi, 2 January
PHOTO: SUNIL SAMUEL PEW
NITIN SETHI
New Delhi, 2 January
DIFFERING FOREST-COVER DATA A mile-high party to ring in the
new year has landed SpiceJet
(squarekilometres) in trouble with the aviation reg-

D
oubts have been raised by a UN Original state of forest reports Revised in subsequent report ulator.
body over India’s claims that its Back series generated in 2009 On December 31 last year,

692,693
forest cover has been increasing the private airline decided to

692,394
In latest report to UN

690,899
690,899

692,027
692,027
692,027
690,827
690,171
690,171
steadily over the years. celebrate the arrival of 2019 on
686,767

These questions have been raised by board. The crew wore colourful On December 31 last year, SpiceJet decided to celebrate the
675,542

experts of the UN Framework wigs and carried pompoms arrival of 2019 on board. The crew wore colourful wigs and
678,333
677,816

677,088
675,906
675,538

Convention on Climate Change (UNFC- while greeting passengers in carried pompoms while greeting passengers in their seats
CC) at a time when future claims of their seats.
668,806

increase and enrichment of India’s forest What irked the Directorate

covercouldleadtopotentiallymillionsof
dollars in revenue annually once the
Paris Agreement is implemented.
The agreement envisions setting up a
global mechanism for countries to trade
in the greenhouse gas emissions avoided
byeithergrowingmoreforests,enriching
existing ones or reducing the existing
rate of deforestation in a country. It is
called REDD+.
The central government has for more
than two decades claimed an increase
in the forest cover due to its ‘sustainable
forest management’ policies. It also
argued strongly at the UN climate
change forums for setting up the REDD+
mechanism to earn carbon revenues
from this claimed increase in forest cov-
er. But when the Indian government
submitted data supporting this forest
cover increase, it came in for criticism.
Business Standard further checked the
data submitted to the UN against the
biennial State of Forest reports for the
last 18 years to verify the numbers for
forest cover submitted to the UN.
It also reviewed other reports sub-
mitted earlier to the UN citing forest cov-
er and emission numbers. This included
the first and the second National
Communications to the UN, the first
Biennial Update Report and the draft
second Biennial Update Report. The
numbers submitted to the UN in its lat-
est report that came in for criticism do
not match. The review also showed that
the forest cover numbers for previous
years have been repeatedly revised, at
NA
2000 2002 2004 2006
Sources: State of Forest Reports, 1999-2011, India FRL
report to UNFCCC
times, particularly for submission to the
UN. These revisions lead to a wide-range
of changes in the data ranging from
downward revision of 6,732 square kilo-
meters in one year to an increase of for-
est cover by 13,083 square kilometres for
another year. The revisions showed up as
increase in forest cover during certain
periods are practically and ecologically
not possible.
The Union environment, forests and
climate change minister’s office and oth-
er officials did not respond to detailed
emailedqueriespertainingtothesewide-
ranging revisions and the submissions to
the UN that drew criticism.
An official speaking on condition of
anonymity said special forest cover esti-
mation exercises had been carried out
solely for the purpose of the report to the
UN. The numbers reflected in the report
were not out of any of the revisions made
to forest cover data made available
domestically at different times over the
last 18 years.
ReporttotheUN
As a first step towards accessing the
potential fund flows under REDD+,
countries are required to set a baseline
NA
2008
level of greenhouse emissions being
emitted due to deforestation or prevent-
ed from escaping into the atmosphere by
conserving and growing forests. This is
referred to as the Forest Reference Level
or FRL.
It is this FRL report to the UN, con-
taining data on changes to the forest-
cover and consequent greenhouse gas
emissions, that came in under criticism.
India submitted forest cover and for-
est cover change data on three occa-
sions – 2000, 2004 and 2008. Based on
these data points, the government pro-
jected the level of greenhouse gas emis-
sions it is preventing from escaping into
the atmosphere annually. But the UN
found its data questionable, lacking
transparency and not in accordance
with the UN regulations.
Responding to the FRL report India
submitted, the UN expert panel asked
how the data had been generated.
Based on these queries, the Indian gov-
ernment revised its submission but it
has still fallen short of the levels of trans-
parency UN asked for, records show.
The experts in their review have con-
cluded, “The data and information used
by India in constructing its FRL are par-
General of Civil Aviation craft. “We have summoned offi- a SpiceJet spokesperson said.
(DGCA) was a video on social cials of SpiceJet. If it is found This is not the first time that
media that showed passengers that the cabin crew also partic- the regulator has taken a strict
dancing on board a midair ipated[inthecelebrations],suit- stance against a midair bash
flight. The regulator has sum- able action will be taken against inside an aircraft.
moned the airline officials seek- them. The responsibility of the In 2014, the DGCA had
ing an explanation. crew is to ensure cabin safety sent a showcause notice to
“We have and discipline,” SpiceJet for holding a 10-
tially transparent and not complete and taken cog- he said. minute dance show inside an
therefore not fully in accordance with nizance of a This is not the first SpiceJet said aircraft. In 2016, the regulator
the guidelines contained (in the UN video of an inci- time that the no protocols had also grounded the crew
decisions).” dent inside SG regulator has taken were violated of Jet Airways after singer
Detailing the reasons it believed that 282 flying from a strict stance and the airline Sonu Nigam was allowed to
India had not been completely trans- AmritsartoGoa. against a midair crew did not perform midair over the pub-
parent with its data, the experts said, In the video, it is bash inside an participate in lic announcement device
“The wealth of information and data seen that while aircraft. In 2014, the dancing. inside an aircraft.
available in the country was not proper- the aircraft was the DGCA had sent “On one “We are not going to allow
ly made available for the reproduction of midair, many a showcause notice specific flight, any activities that threaten
the FRL and suggested that India either passengerswere to SpiceJet for during cruise the safety of the passengers
download the information to an external moving around holding a10-minute after comple- and hence no permission will
server or provide links to the relevant the aisle danc- dance show inside tion of service be granted to anyone want-
publications for easy and public access. ing, clicking and prior to ing to hold activities that are
India indicated in the modified submis- photos, and the seat belt not well described in the rule
sion that all relevant documents are pub- even posing with the cabin sign coming, on we got some book,” the DGCA official said.
licly available, but no explicit informa- crew.Thisisaviolationofcabin- of our cabin crew members Midair bashes, however,
tion was provided on how to access the safety requirements,” said a to greet passengers while are common as airlines regu-
data and/or information. The assess- senior DGCA official. walking down the aisle. The larly use them to attract fly-
ment team feels that the absence of this Explaining the violation, the people seen dancing are pas- ers and improve their brand
information in the modified submission officialsaidfrequentmovement sengers who got momentari- image. Airlines such as
does not allow for the reconstruction of of passengers may impact the ly carried away. Our crew Finnair and AirAsia have
the FRL, thus compromising the com- centre of gravity of the aircraft. immediately requested the conducted dance and birth-
pleteness of the submission.” “Use of cell phones to take pic- passenger to be seated. The day celebrations onboard
The nature of these international turesmidairisalsoaviolationof captain also put on the seat their flights.
reviews under the UN does not permit a safety rules,” the official added. belt sign and appropriate Even in India, Air Sahara
more probing inquiry by the experts. The regulator is probing announcements were made. and Damania Airways also
whether crew members joined We would like to clarify that used to hold shows onboard
Readcompletestoryon in the celebration and if it was the video was shot by a pas- in the 1990s, said sources in
business-standard.com an incident inside only one air- senger and not by the crew,” the industry.

New US green
card rule may
reduce waiting
time for Indians
PRESS TRUST OF INDIA
Washington, 2 January
Eliminating the country
quota from the most
sought-after Green Cards
will end the current dis-
crimination in the US
labour market, but would
allow countries like India
and China to dominate the
path to American citizen-
ship, according to the latest
Congressional report.
Having a Green Card
allows a person to live and
work permanently
in the US.
Indian-Americans, most
of whom are highly -skilled
and come to the US mainly
on the H-1B work visas, are
the worst sufferers of the cur-
rent immigration system
which imposes a seven per
cent per country quota on
allotment of Green Cards or
the Legal Permanent
Residency (LPR).
The bipartisan
Congressional Research
Service (CRS), an independ-
ent research wing of
Congress, said if the per-
country cap for employment-
based immigrants was
removed, many expects that
Indian and Chinese nation-
als would dominate the flow
of new employment-based
LPRs for as many years as
needed to clear out the accu-
mulated queue of prospective
immigrants from those
countries.
Oiljumps4%,butdemand 2 women enter Sabarimala temple,
concernsstillweigh shrine shut for ‘purification’ ritual
REUTERS
New York, 2 January
Oil prices rose 4 per cent in
choppy trading on
Wednesday, but concerns
remained about rising crude
production and weakening
global economic growth
which could hurt demand
for oil.
Brent crude futures rose
$2.38 to $56.18 a barrel, a 4.4
per cent gain, by 11:27 am
EST (1627 GMT) after earlier
falling as low as $52.51. US
West Texas Intermediate
(WTI) crude futures rose
$2.09 to $47.50 a barrel, a 4.6
per cent gain, after sinking to
$44.35.
“Given the high levels of
price volatility we've wit-
nessed over the last month, a
$2 daily move isn't really any-
thing other than signs we
continue to have price
volatility,” said Gene
McGillian, vice president of
market research for Tradition
Energy in Stamford,
Connecticut.
Oil futures were buoyed
by some gains in US stocks,
with the Nasdaq Composite
turning positive after earlier
losses. Crude futures have
recently tracked stocks on
Wall Street. However, disap-
pointing manufacturing data
from China earlier added to
ongoing concerns about a
slowing global economy and
increased output out of coun-
tries like Russia.
PRICE SURGE
Brent Crude spot ($ / BBL)
China's factory activity
contracted for the first time
in over two years in
December, highlighting the
challenges facing Beijing as
it seeks to end a bruising
trade war with Washington.
"The manufacturing sur-
vey data out of China this
week is particularly negative
for crude oil, as it goes to the
heart of the key demand cen-
ter for the market," said John
Kilduff, a partner at Again
Capital Management in New
York.
Worries about an eco-
nomic slowdown and excess
supply dragged oil prices
from multi-year highs
reached in October 2018.
Crude futures ended 2018
down for the first year since
2015. Russian production hit
a post-Soviet record in 2018,
figures showed on
Wednesday. Other data
Source:Bloomberg
showed US output reached a
record in October and Iraq
boosted oil exports in
December.
Surging shale output has
helped make the United
States the world's biggest oil
producer, ahead of Saudi
Arabia and Russia.
Oil production has been at
or near record highs in all
three countries. Signs of ris-
ing production illustrate the
challenge facing the
Organization of the Petroleum
Exporting Countries and its
allies, including Russia, which
are seeking to prop up the
market with a supply cut of
1.2 million barrels per day.
However, the energy min-
ister for the United Arab
Emirates, an OPEC member,
said on Tuesday he remained
optimistic about achieving a
market balance in the first
quarter.
PRESS TRUST OF INDIA
Sabarimala (Kerala), 2 January
Scripting history, two women in
their 40s entered the Lord
Ayyappa temple in Kerala early
Wednesdayandofferedprayers.
Speaking to media, Chief
Minister Pinarayi Vijayan said
“it is a fact that the women have
entered the temple”.
Following the entry of two
women at the shrine, the chief
priest has decided to close the
sanctum sanctorum of the tem-
ple in order to perform the
'purification' ceremony.
The temple which opened
at 3 am was closed at 10.30 am
for performing the ritual.
Normally, the shrine closes
at 12.30 pm. Since the purifica-
tion ceremony is on, devotees
have been asked to move out of
the shrine. The shrine will open
in the afternoon after comple-
tion of the ritual. Priests carry out ‘purification’ of the Lord Ayyappa Temple after two women in their early 40s
Despite the Supreme Court’s entered the shrine and offered prayers, in Sabarimala on Wednesday PHOTO: PTI
historic ruling on September 28
last year, permitting women in The women trekked to the rity to the homes of the two verdict, which was strongly
the 10-50 age group, no children hill a day after the state-spon- women fearing possible opposed by the main opposi-
or young women in the ‘barred’ sored 620 km-long human wall protests. On December 24 last tion Congress and the BJP.
group were able to offer prayers of women was formed Tuesday year, the two women had Bindu, a college lecturer and
at the shrine following frenzied from Kasargode in the northern unsuccessfully tried to offer CPI(ML) activist from
protests by devotees and right- part of the state till the south- prayers at the shrine. The Lord Kozhikode district's Koyilandy,
wing outfits. CPI(M) state sec- ernmost district of Ayyappa temple had opened for and Kanakadurga, a civil sup-
retary Kodiyeri Balakrishnan Thiruvananthapuram. the 22-day “Makaravilakku” fes- plies employee from
told media that the two women The two women, identified tivalonDecember30,threedays Angadipuram in Malappuram,
have entered the shrine as per as Kanakadurga (42) and Bindu after the conclusion of the 41- had come to Sabarimala on
theapexcourtorderandtheclo- (42), wearing the traditional day “mandala puja”. December 24 last year after 11
sure of the shrine was against black dress, with their head cov- Following the top court ver- women activists of a Chennai-
the law of the land. ered, are said to have climbed dict allowing women of all ages based outfit were prevented
"People should accept the the hill shrine at 3.38 am to offer prayers at the shrine, the from reaching the shrine and
development as a reality," Wednesday. CPI(M)-led LDF government chased away by devotees chant-
Balakrishnan said. Police have provided secu- had decided to implement the ing Ayyappa mantras.

Netflix pulls episode of Patriot Act in Saudi

PRESS TRUST OF INDIA
Los Angeles, 2 January
Netflix has removed an
episode of Hasan Minhaj-host-
ed "Patriot Act" in Saudi
Arabia, which featured a seg-
ment criticising the country's
Crown Prince Mohammed bin
Salman's alleged involvement
in journalist Jamal Khashoggi.
The episode will not air in
Saudi Arabia but is available
elsewhere.
In the episode, Minhaj
blames Mohammed bin
Salman for Khashoggi's mur-
In an episode of Hasan Minhaj-hosted Patriot Act in Saudi der, calling it the "biggest
Arabia Minhaj blames Mohammed bin Salman for Khashoggi's tragedy of the MBS era",
murder, calling it the “biggest tragedy of the MBS era”, according to The Hollywood
according to The Hollywood Reporter Reporter.
Minhaj also spoke about
how American companies pre-
ferred to keep their business
ties intact with Saudi Arabia.
Netflix, on its part said they
received a legal request from
the Saudi government to
remove the episode from its
platform, though the episode
remains available on YouTube.
"We strongly support artis-
tic freedom and removed this
episode only in Saudi Arabia
after we had received a valid
legal request -- and to comply
with local law," Netflix US said
in a statement.
Minhaj's show started
screening in October and is
already very popular.
Khashoggi, a Washington
Post columnist, disappeared
after he entered the Saudi
consulate in Turkey on
October 2, 2018, to collect a
document for his upcoming
marriage to a Turkish woman.
The Saudi government ini-
tially said he left the con-
sulate through the back door.
Following a global outrage,
Riyadh later acknowledged
that Khashoggi was killed in a
fistfight inside the consulate
after an interrogation went
wrong. Turkish media recent-
ly reported that people who
came out of the consulate
were carrying a bag, which
according to the reports, con-
tained Khashoggi's body
parts.