Innholdsfortegnelse for 12-Aug-2018 i Business Today

HINDUSTAN UNILEVER can trace its history in India back to the late 19th century. It started by shipping Sunlight soap, Lifebuoy, Pears, Vim and others to the country from England. In the 20th century, between 1931 and 1935, it had set up three Indian subsidiaries – Hindustan Vanaspati Manufacturing Company, Lever Brothers Ltd and Hindustan Traders Ltd. Post Independence, the three subsidiaries merged to become Hindustan Lever Ltd in 1956. By the 1960s and ’70s, it had made a name for itself for its products, its methodical expansion of distribution to reach the farthest corners of the country, and the excellent training of its executives and managers. (HUL – then HLL – has been a favourite poaching ground for managers by both Indian companies as well as global giants setting…

THE FIRST QUARTER of this fiscal ended on a cheery note for the domestic IT industry’s Banking, Financial Services, and Insurance (BFSI) vertical. Market leaders Tata Consultancy Services and Infosys just announced their Q1 results indicating BFSI's higher business potential. It is incidentally the largest vertical for the domestic IT sector as a whole. For TCS and Infosys, too, it is the biggest, accounting for over 31 per cent of total revenue. After the Q1 FY19 earnings announcement, CEO and Managing Director of TCS, Rajesh Gopinathan, said, “Our optimism on BFSI demand in North America has been vindicated. Our BFSI vertical grew very nicely this quarter, recording strong sequential growth and a year-on-year value of 4.1 per cent.” Infosys CEO and Managing Director, Salil Parekh, meanwhile, said: “Two of the…

IN THE LAST few years retail banking, especially mortgages, and personal loans, have proved a saviour for the banking industry. Growing upwards of 20 per cent, retail has actually been compensating for low corporate banking growth. Of late, however, margins are under pressure from intense competition. Besides future growth (which may continue), there are issues of risk in unsecured lending. Going forward, rising interest rates may affect existing homeowners and there may be some some delinquencies. Some banks, meanwhile, are now venturing into new areas such as consumer durables financing, affordable housing, and micro loans. At some stage, the corporate banking growth has to come back.…

While the HUL top management refuses to admit competition from Patanjali Ayurved and regional brands did impact growth, key strategic moves indicate the FMCG major is ensuring that it’s not complacent. Winning In Many Indias (WIMI) In 2014, HUL decided to slice India into 14 clusters based on consumption habits, income and state of development. As per the WIMI guidelines the company has tried to localise its products, marketing and supply chain strategies. Coffee consumption habits in Karnataka are different from Tamil Nadu. HUL recently launched a variant of Bru instant coffee in Karnataka Country Category Business Teams (CCBT) Last year, HUL set up 15 CCBTs going by the philosophy that big will not beat small, and the agile and nimble will beat the slow. While it may be India’s…

On July 16, public sector behemoth Life Insurance Corporation of India (LIC) decided to acquire 51 per cent stake in debt-ridden government-owned IDBI Bank. It’s likely to be a preferential share purchase to recapitalise and strengthen the bank. The expansion of the equity base will see the current majority (85.96 per cent) stakeholder – the Central government – reduce its stake, a possibility hinted at by Arun Jaitley in his capacity as Union finance minister a year ago. The Opposition parties and bank trade unions accuse the government of arm-twisting LIC to bail out a troubled bank using insurance policy holders’ money, but the government and the public sector entities involved are going ahead with their decision. The proposal has the backing of the Insurance Regulatory and Development Authority of…

“AIFs ARE GROWING AS THERE IS INCREASING AWARENESS AMONG HNIs, AS WELL AS AN EXPANDING POOL OF PEOPLE WHO UNDERSTAND AND SELL SUCH PRODUCTS”Radhika Gupta CEO, Edelweiss Asset Management Company AVENDUS ENHANCED RETURN FUND (AERF), launched by global financial services company Avendus in India in December 2017, provided overall returns of 11.71 per cent till end-June this year, while the National Stock Exchange’s Nifty rose 5.12 per cent in the same period. Even when the Nifty fell by 5 per cent in February, the fund’s value had dropped by only 0.81 per cent. Ambit Alpha Fund (AAF), run by domestic financial services heavyweight Edelweiss Asset Management – which it acquired from Ambit Investment Advisors in September 2016 – has delivered 12-15 per cent returns every month, without once going negative.…

INDIA’S HEALTHCARE system has become a politically sensitive issue these days. All stakeholders are angry. The government is angry about overcharging by private players and is talking about reducing prices. The private sector is angry with the government citing low profits and margins. People are angry over the never-ending neglect of government hospitals and escalating healthcare costs. In the last decade or so, growth in the private healthcare system was centered around expansion of primary and secondary care health establishments to Tier-II and Tier-III cities. Leaders such as Apollo, Fortis and Max kept adding new 100-200 bedded facilities one after another. Along the way, they created world-class tertiary care facilities in major cities. Over seven lakh beds were created in the private sector, apart from the 14 lakh beds in…

NEW TECHNOLOGIES ARE MAKING A MARK Molecular tests, use of genomics, advances in pre-natal tests and cancer care. BETTER DETECTION BUT AT A COST – A molecular test for malaria costs around ₹2,800. This is more than the total cost of treatment (including the routine test and treatment) in a non-hospital setting. Similarly, for the dengue Elisa test, the current gold standard and routine test costs around ₹600 but a molecular test costs around ₹3,700. BIG HURDLE Poor insurance coverage as most insurers do not cover outpatient diagnostic services BIG CHALLENGE No entry barrier; accreditation is optional. WHAT IS NEEDED Some basic regulations to ensure quality and minimum standards for small units without making NABL accreditation mandatory.…

ARTIFICIAL INTELLIGENCE (AI) has come to Hollywood. A company, in business since 2015, has developed algorithms to predict which Hollywood movies will be box-office hits. ScriptBook says it applies hard science to predict screen successes using a Script2Screen solution that could benefit producers, distributors, film sales agents, talent agents and film funds. The company claims that its solution focusses on the storytelling metric and uses AI to analyse screenplays and deliver an objective assessment of a script’s commercial and critical success. ScriptBook says its AI analysis is objective and fair, treating every screenplay equally and without bias. The idea is to help Hollywood produce many more profitable movies without giving up on creativity and compelling storytelling. At a presentation at the recently concluded Karlovy Vary International Film Festival, ScriptBook founder…

OF LATE, there has been an influx of flagship killers at affordable prices. OnePlus was the first to nail it, but the company is increasingly facing competition from players such as Honor and Nokia. The latest one to join the league is Asus with its mid-range Zenfone 5Z. This one feels good to hold, has a straight-line design with curved edges and is quite sleek at 7.7 mm. With thin bezels and a notch at the top, the front features a 6.2 inch display that is sharp and super bright with full HD-plus resolution. The rear has a vertical dual-camera set-up (12 MP and 8 MP) that captures good depth images. Just like Honor 10, the camera can auto-detect scenes such as people, animals, landscapes, night views and more, and…

Q. The biggest challenge you faced in your career A. The big changes in Indian rules and regulations pose a tough challenge. At times, the decisions are not based on scientific data; they are taken as short-term measures to address issues without any deep thought. However, the regulations are moving in the right direction in line with global standards. I am looking forward to speedy and successful implementation so that we can be a part of India’s progress. Q. Your best teacher in business A. The experiences I had along the journey, especially the bad ones. Those are certainly lessons learnt, but most importantly, they teach you to be stronger, kinder and more patient. While we celebrate successes, it is equally important to learn from failures. Our experiences shape us,…

First Check: When you can file any of these forms: ITR-1, ITR-2, ITR-3 and ITR-4 • Income from salary/pension (for ordinarily resident person)• Income from other sources (other than winnings from lotteries and race horses or losses under this head)• Income or loss from one house property (excluding brought-forward and carried-forward losses) * Only an Individual, who is an ordinarily resident in India, can file income-tax return in Form ITR-1. Second Check: When you cannot file ITR-1 but go for other forms • Income from salary/pension (for not ordinarily resident and non-resi dent person)• Income to be apportioned in accordance with Section 5A• Income from other sources (including winnings from lotteries and race horses or losses under this head)• Total income exceeding Rs 50 lakh Third Check: When you need…

The general rule is that electronic filing of return of income is mandatory for all assessees. However, a person can furnish the return of income in paper form in ITR-1 or ITR-4 under any of the following circumstance: 1. Taxpayer is an individual and his age is 80 years or more during the previous year 2. Taxpayer is an Individual, HUF or Partnership Firm and his/its income during the previous year does not exceed ₹5 lakh and no refund is claimed in the return of income.…

Investors today are spoilt for choice. A plethora of investment vehicles and opportunities are out there to suit every kind of investor and meet his/her financial goals. Consequently, discerning people are not impressed by cookie-cutter solutions. What sophisticated investors with a higher net worth demand is customised solutions that will meet specific risk/return requirements. It could be the reason why commitments to portfolio management services (PMS) have seen a surge over the past two years. PMS is provided by professional money managers to knowledgeable investors and can be tailored to meet specific investment objectives. PMS providers invest directly in securities through focussed portfolios. Unlike mutual funds, here the investors’ assets are not pooled into one large fund. Instead, each account is kept separate and operated according to client mandate. However,…

Returns are as of 2nd July'18 Equity and Aggressive Allocation funds are ranked on the basis of 5-year performance Rest of the funds are ranked on the basis of 3 year performance AUM filter of minimum ₹500 Cr is applied on Equity, Aggressive Allocation, Liquid, US/T, Low Duration and Money Market funds AUM filter of minimum ₹100 Cr is applied on rest of the funds All portfolio related data is as of May'18 end; unless specified Returns of time-period six months and one year are absolute, while returns of time periods more than one year are annualised Average Credit Quality calculation is as per Morningstar's methodology Source: Morningstar…

STAY CONNECTED WITH US ON www.facebook.com/BusinessToday@BT_India PERSPECTIVES Challenging Times Ahead for Aviation Sector as Losses Rise Almost all domestic carriers are witnessing financial crunch. An increased focus on the cost structure may help curtail the losses businesstoday.in/aviation-losses Retail Is No Longer Restricted to Having Physical Stores or Being Omni-channel The retail business globally is moving towards platform play. The rationale behind this is to own the consumer at every possible touch point businesstoday.in/retailbusiness-consumer Tax Litigation Limit: This Clause May Play Spoilsport While it’s a big relief for both taxpayers as well as tribunals and courts, there is one particular clause in the circular issued by the revenue department that may play spoilsport businesstoday.in/tax.clause-spoilsport Nobody Cares About Safety The zero safety rating for Renault Kwid in ASEAN NCAP tests again exposes…

OVER THE PAST two-three years, India Post has been increasing revenues from non-traditional sectors such as e-commerce or value-added services. The share of these non-traditional sectors in total revenues earned by the Department of Posts jumped from nearly 24 per cent in 2015/16 to around 27 per cent in the last fiscal—the share stood at 29.13 per cent in 2016/17. In the first two months of fiscal 2019, it managed a share of 17.13 per cent. The express and business parcel segment earned revenue of ₹17.3 crore during April-May 2018. To date the India Post Payments Bank has not contributed to any revenue for the Department of Posts.…

A BOTCHED policy where cane prices are increased to appease the 50 million sugarcane farmers who form an important vote bank for any political establishment and a sugarcane glut that leaves no room for industry to pass on price benefits to consumer is a confirmed prescription for disaster. India’s sugar stockpile is at a record high, after a good monsoon and a bumper crop in 2017/18. Projections by the Indian Sugar Mills Association suggest there will be an inventory of 10 million tonnes by the end of the marketing year, this September – almost three-fold increase over last year. Sugar demand has been low both in India and globally. The glut has softimpacted sugar mills’ profitability, even as operating costs shoot up thanks to multiple revisions of sugarcane support prices…

GETTING FUTURE READY WHAT: FICCI Big Data and Analytics Conclave 2018 WHEN: August 13, New Delhi WHAT TO LOOK FOR: Technologies like big data and analytics are shaping the way organisations do business. FICCI is organising a full day conclave for understanding the potential and application of big data and analytics ALL ABOUT BLOCKCHAIN WHAT: National Conference on Role of Blockchain Technology WHEN: August 30, Chennai WHAT TO LOOK FOR: The adoption of blockchain technology in India is at a nascent stage and requires an enhanced level of understanding about its applications, ethical, legal and regulatory issues. The blockchain technology stakeholders will discuss all the relevant issues at the Assocham event READY FOR TAKE OFF WHAT: CII Conference on Aerospace & Defence Manufacturing Technologies WHEN: August 17, Chennai WHAT TO…

The emergence of Patanjali Ayurveda's herbal personal care products at competitive prices gave most FMCG companies a run for their money. Its Dantkanti toothpaste, Alovera Gel, natural soaps and shampoos led to market share erosion of almost all personal care brands including HUL. Be it Colgate, L’Oreal or P&G, all responded with a natural care portfolio. HUL which typically took two years to research and roll out a product introduced 15 products under the Lever Ayush brand. While Patanjali seems to have lost out, Colgate and Dabur registered robust growth in recent quarters. HUL had launched Ayush at the start of the millennium but didn’t get its strategy right then. The Patanjali effect pushed it to look at its natural portfolio again. It became a priority category and HUL adopted…

The global healthcare sector is going through some tectonic shifts. As providers, payers and investors across the world strive to deliver effective, efficient and equitable care, it is resulting in an ecosystem that is unlocking new operating models. These are being fuelled at the macro level by ageing and growing populations, the proliferation of high-cost chronic diseases and consumers’ increased focus on care quality and value. The evolving financial and quality regulations, informed and empowered consumers, innovative treatment methods and technologies, and a significant rise in real estate costs, especially in emerging economies like India, are shaping a new healthcare delivery segment. The $160 billion Indian healthcare sector is poised to grow to $372 billion by 2022. And the hospital sector, currently valued at $62 billion, is growing at a…

The regulatory framework in pathology across developed countries is way ahead of that in developing nations. In the UK, the regulatory framework is led by The Royal College of Pathologists and CLIA (Clinical Laboratory Improvement Amendments) and in the US, by The College of American Pathologists. If one looks at the US, the entire healthcare industry is regulated by a host of bodies, including the Joint Commission and Food and Drug Administration. The scenario in India is an absolute contrast. India today has over 1,00,000 laboratories and only about 20 per cent of these are part of the organised sector. The rest of the industry is highly fragmented, unregulated and unfortunately, do not adhere to minimum standard requirements. Incorrect sample collection procedures, inaccurate testing protocol and non-adherence to guidelines are…

Mayank Agarwal from Delhi was away on vacation when burglars broke into his home. But the Yi Home security camera installed there promptly detected the motion and sent notifications to his mobile. Agarwal accessed the recording and the live feed and got in touch with the police who caught the miscreants. Welcome to the world of smart security cameras which are affordable, can be placed anywhere and you can set them up yourself, unlike the traditional CCTV. Better still, these Wi-Fi-powered devices give you instant access to footage irrespective of your location. Take, for instance, the Yi Home Camera mentioned above. Priced at ₹2,499, this handy surveillance system starts recording as soon as it detects human movement and notifies you in real time (there is a 30-second lag). The 111°…

The Excellence Dividend Principles for Prospering in Turbulent Times from a Lifetime in Pursuit of Excellence By Tom Peters Publisher Hachette India Pages: 496 Price: ₹ 599 WHEN I STARTED reading Tom Peters’ latest book, it seemed more like a ‘Do it Yourself ’ or ‘Seven Steps to Being a Successful Salesman’ type of book. Then I discovered it has the depth of content along with an underlying framework and significant cross-referencing from how many people have looked at ‘excellence’. It is Peters’ 17th book, beginning with his co-authored In Search of Excellence, a path-breaking and a successful book published in 1982. I have only been through three of them but realised from the titles that he has been very passionate about exploring and disseminating the spirit of excellence. In…

TAXATION Deadline For Aadhaar-PAN Linking Extended; e-PAN Can Be Generated Instantly The Central Board of Direct Taxes has extended the deadline for individual taxpayers to link their PAN with Aadhaar till March 31, 2019, through a notification issued on June 30, 2018. This has come in the backdrop of an ongoing court proceeding in the Supreme Court where the apex court had directed extension of the March 31, 2018, deadline for linking Aadhaar to various services. Meanwhile, the income tax department has launched a facility for instant generation of new PAN called e-PAN. The e-PAN will be generated digitally through Aadhaarbased e-KYC in which OTP will be sent on the mobile number registered in the Aadhaar database. An e-PAN PDF can be downloaded after successful allotment. This facility is only…

• ITR Form-1 can be used only by the ordinarily residents taxpayer having income less than ₹50 lakh.• Salaried taxpayers using ITR Form-1 (Sahaj) need to give breakup of their salary.• To get refund credit in overseas bank account, non-resident Indians can disclose their foreign bank accounts in the form.• Taxpayers need to disclose the fair market value while report ing capital gains on sale of unlisted shares.• Disclosure of assets and liabilities if taxable income exceeds ₹50 lakh…

THE JOINT venture with German Giant Thyssenkrupp AG in early July was expected to serve as a rescue line for Tata Steel Europe. The Indian steelmaker was struggling in the European market for the last decade, since the financial downturn, and cheap Chinese exports had added to TSE’s piled-up losses. So much so that the company had begun cost-cutting, retrenchment and shedding non-core assets and even considered selling all the assets it gained in the 2007 Corus acquisition. When the Thyssenkrupp JV came to the table in 2016, it demanded a higher share – 55 per cent of the proceeds if the joint venture launched an IPO. At the time Tata group Chairman, N. Chandrasekaran said the deal would help the group refocus on growth in the domestic market. Now,…

BANKS ARE in dire need of capital. Even as some PSBs are ceding their share, private banks are out in the market trying to raise capital. While LIC stepped in to rescue IDBI bank, HDFC Bank is getting about ₹ 24,000 crore this year. Recently, foreign investor Prem Watsa got the nod for a majority stake in Catholic Syrian Bank. New capital with new management is good news for private banks. A case in point is the revival of IndusInd Bank and RBL Bank by new managements. And last year when Axis Bank was in trouble, Bain Capital stepped in. The best way ahead for private banks is to keep performing to get capital, and thus capture better growth.…

THE CENTRAL Board of Indirect Taxes and Customs (CBIC) has doubled import duty to 20 per cent on over 50 textile items - mainly garments - to protect the domestic industry. At least, that is the stated intent. India imported textile and apparel products valued at about $7 billion last year, including nearly ₹ 5,000 crore worth of ready-to-wear garments. Textile imports from China, Bangladesh, Vietnam, Cambodia and Sri Lanka had a Compounded Annual Growth Rate (CAGR) of 17 per cent in the last five years. These increased after GST. India has Free Trade Agreements with Bangladesh and Sri Lanka. This means while Indian manufacturers pay duty on imported fabrics, Bangladesh and Sri Lanka can import duty-free fabric from China, convert it to garments and then sell them duty-free in…

EU SLAPS $5 Bn FINE ON GOOGLE The EU has hit Alphabet-owned Google with a record antitrust fine of €4.34 billion ($5 billion). The company was charged with forcing Android manufacturers to pre-instal Google apps Chrome and Search. The EU also said that Google had paid phone makers to exclusively pre-instal Google Search and prevented them from selling phones running on other modified Android versions. IRELAND MOVES AWAY FROM FOSSIL FUELS The Irish Parliament has recently passed the historic Fossil Fuel Divestment Bill so that investments in coal, oil and gas could be dropped from the €8 billion Ireland Strategic Investment Fund, part of the Republic’s National Treasury Management Agency. The Bill was introduced by Thomas Pringle and should be made into law in the next few months after the…

SANJIV MEHTA, Chairman and Managing Director of the ₹35,218 crore Hindustan Unilever Limited (HUL), has been a Unilever globe trotter and trouble shooter for the past 25 years. He started his stint with the FMCG multinational as part of the team setting up the business from scratch in Dubai, had stints as chairman of Unilever Bangladesh (which was in the throes of an anti-MNC sentiment), in Africa and again as chairman of Unilever operations in the Middle East (right in the middle of Arab Spring), with postings at the London headquarters in betwee In 2013, Unilever offered Mehta the chance to take over as CEO and managing director of HUL (in July 2018, he took over as chairman after Harish Manwani retired). It was not just a reward posting to…

Healthcare delivery is one of the key driving forces in the development process of a society, with health insurance being a critical building block. While the health insurance sector has been growing at a robust pace of more than 20 per cent CAGR over the last five years, its penetration remains relatively low at 32 per cent. Moreover, a large percentage of the insured are enrolled in government-sponsored health insurance schemes. While penetration should be bolstered by the implementation of the ensuing Ayushman Bharat (National Health Protection Scheme), retail health insurance penetration remains at just around 2 per cent. The retail penetration challenge is being addressed through various initiatives that the health insurance industry is pursuing. Further, the insurance regulator has played a critical role in facilitating the same with…

IT HAS BEEN at least four years since scientists at the State University of New York-Binghamton developed a bacteria-powered battery on a single sheet of paper, able to power disposable electronic devices. These biobatteries were supposed to revolutionise the battery landscape, but they didn’t. Before that, in 2015, a fully integrated and self-powered system on paper was also developed so that it could work independently and in a self-sustainable manner as a low-cost solution in specific use cases. It was capable of generating power from microbial metabolism, delivering onboard energy to the next generation of paper-based systems with one drop of bacteria-containing liquid derived from renewable and sustainable water sources. Now, researchers at the University of British Columbia (UBC) have found a cheap and sustainable way to build a solar…

MOST FITNESS bands are used as activity trackers, but the GOQii ecosystem, including its app-based health coaching, offers much more. The new GOQii Vital band monitors blood pressure (BP) and heart rate; tracks step count and workout, and provides access to a coach and a doctor as well as fitness experts. Vital sports a sleek look and features a full-colour OLED display. When setting it up for the first time, all I had to do was download the GOQii app, register and sync the band. Once it is done, the band displays time and swiping up, you can see options such as workout tracking, BP, heart rate, number of steps walked and more. It automatically detects the daily step count, but heart rate and BP can be monitored with a…

“STRESS CHANGES BODY chemicals,” points out Dr Shetty. For instance, one’s blood could become hypercoagulable due to sudden and intense stress, leading to fast formation of blood clots. If the person already has a partial heart blockage, these clots could block the blood vessels completely and cause a heart attack. In such cases, stress could be life-threatening. So, there are good reasons why an increasing number of studies and researches are happening to understand stress. The heightened activity in the amygdala region of the brain, which is responsible for processing emotions, is being studied to understand how it works. A clearer perception of its role and function may provide effective solutions to deal with fear and stress. Eventually, it may also help cure mental health disorders.…

The Svof Not Giving a F*ck By Mark Manson Harper Collins Price: ₹499 Thinking, Fast and Slow By Daniel Kahneman Penguin Price: ₹499 Catalyst By Chandramouli Venkatesan India Portfolio Price: ₹299 Elon Musk: How the Billionaire CEO of Spacex and Tesla is Shaping Our Future By Ashlee Vance Virgin Books Price: ₹699 Attitude Is Everything: Change Your Attitude Change Your Life! By Jeff Keller Collins Price: ₹199 *Top books by sales for July 3-July 16, 2018; includes only books released after Jan 1, 2015; information provided by…

Return of income can be filed in paper mode or in e-filing mode. If return of income is filed through electronic mode, then you have the following three options: 1. E-filing using a Digital Signature Certificate (DSC)2. E-filing without a DSC3. E-filing under electronic verification code (EVC) If you file the return without using DSC or without EVC, you will need to send the signed copy of ITR-V to Bangalore CPC within 120 days of uploading the return, either by ordinary post or by speed post.…