Innholdsfortegnelse for 10 December 2023 i Business Today

For some time now, the Indian markets have been navigating geopolitical concerns and global economic headwinds, and this has been reflected over the past few months in the way the equity markets have behaved. While most market analysts believe that the country is generally in a good place as far as its fundamentals are concerned and that the India story is on a secular uptrend, immediate concerns often turn the bourses jittery. The trend then is long-term bullishness with short-term volatility. Amid this choppiness, Indian bellwether companies have, by and large, fared well, and held their ground as far as market performance is concerned. The BT500, the much-awaited ranking of India’s most valuable companies—where we rank the Top 500 in terms of their average market capitalisation (m-cap)—reflects this. The period…

FIVE YEARS AGO, Bhadohi in Uttar Pradesh—around 50 km from Varanasi—was a sleepy town, with its hand-woven carpets being its only claim to fame. Small carpet-weaving units were scattered across the region, some struggling to survive while new ones emerged every year. The double jolt from demonetisation and the roll-out of GST also cast a shadow on the economy of this town in southern Uttar Pradesh. As the dust settled, the implementation of GST became a catalyst for the formalisation of the industry. Several fintech and smaller NBFC players descended upon Bhadohi to offer cash-flow lending—which is based on daily earnings instead of balance sheet-based lending—to those who were unbanked and underbanked. Fast forward to today, and the economy of Bhadohi has taken a new turn. Those once modest mom-and-pop…

JANUARY 2023 Whole-time Director and Markets President Venugopal Lambu quits MARCH 2023 Suresh H.P., Global Delivery Head-Industry Groups; Radhakrishnan Rajagopalan, SVP and Global Head-Digital, Data & Insights, Connected Universe, QE; and Suresh Bethavandu, Chief People Officer, leave LTIMindtree JUNE 2023 Siddharth Bohra, Chief Business Officer-Digital Business, quits JULY 2023 Rajnish Kumar resigns as Independent Director from LTIMindtree’s board AUGUST 2023 Tridib Barat, resigns as Company Secretary and Compliance Officer SEPTEMBER 2023 Dinesh Bajaj quits as SVP and Chief Business Officer OCTOBER 2023 Paresh Vankar leaves as Chief Marketing Officer SOURCE REGULATORY FILINGS; BT RESEARCH…

ON NOVEMBER 7, 2023, Honasa Consumer, the parent of beauty and wellness brand Mamaearth, made its debut in the public market, exactly two years after beauty and personal care brand Nykaa’s arrival. Despite the discordant notes in the market, Mamaearth’s initial public offering (IPO) garnered a subscription rate of 7.61 times. The start-up IPO market came to a near-standstill in 2022, with tech stocks globally experiencing a significant downturn and valuations facing a decline. This was exacerbated by historic lows in venture capital funding, following the frenzied activity of 2021, compelling companies to shift their focus from growth to profitability. With money getting pricier, more start-ups are eyeing the IPO path to gather funds. The strong investor demand for Mamaearth’s IPO and the resurgence of pioneering stocks like Zomato and…

The BSE building in Mumbai Data as on November 8 SOURCE ACE EQUITY 33 PER CENT Returns given by the BSE SmallCap, followed by the BSE MidCap (30 per cent), as the broader market has outperformed the Sensex ₹1.85 LAKH CRORE The amount pumped in by domestic investors into Indian equities, compared to the ₹1.45 lakh crore invested by FIIs 52 PER CENT The surge recorded by the BSE Realty index, followed by BSE Capital Goods (47 per cent) and BSE Auto (26 per cent)…

CO-WORKING SPACE giant WeWork’s decision to file for bankruptcy in the US marked a massive fall for a firm that had jumped to dizzying heights not so long ago. The Soft-Bank Group-backed start-up was valued at $47 billion in early 2019 and yet announced in October that it was unable to pay back debt. The contrast between the boom-and-bust story of the global entity and its Indian arm couldn’t be starker. We-Work India—a 73:27 joint venture in which Bengalurubased real estate major Embassy Group holds a 73 per cent stake—recorded a 75 per cent year-on-year jump in revenue in FY23, according to its CEO Karan Virwani. The Indian arm has highlighted that it is an independent venture. But its independence and good financial performance may not shield it from the…

DEEPFAKE VIDEOS OF many prominent personalities have been doing the rounds on social media platforms lately. Even Prime Minister Narendra Modi recently cautioned against the phenomenon, citing a deepfake video of him doing garba that he had seen recently. Developed using artificial intelligence and machine learning algorithms, deepfakes are manipulated images, sounds and voices, generated to create realistic but fake representations of people, events, or scenarios. While some deepfakes are harmless or even entertaining, others can have serious negative consequences. Jiten Jain, Director at cybersecurity firm Voyager Infosec, says not every deepfake can be classified as disinformation if it is generated with the consent of the people involved. He also points out the challenges in verifying the authenticity of these videos, especially when it comes to sensitive issues such as…

Head - Automation South Asia Delta Electronics We spoke with Mr. Manish Walia, Head Automation South Asia (India, Bangladesh, Sri Lanka, Nepal) at Delta Electronics to understand how automation is helping Indian manufacturing deliver on the world stage. We are witnessing a special moment as the Indian industry strides towards the stratosphere. The "Made in India" tag is gaining global trust and respectability, making it the fastest-growing economy in the world and a popular global investment and manufacturing hub. Automation is a key driver of this change. Delta Electronics India, which recently completed 15 years in India, has achieved recognition in the Indian automation landscape. Delta Automation has consistently been at the forefront of innovation and excellence, offering cutting-edge solutions that have revolutionized manufacturing processes. Over the past 15 years,…

THE SECOND WEEK of October saw something curious happen. The Indian stock markets were in the doldrums after a strong September—both the benchmark S&P BSE Sensex and the Nifty 50 had touched their respective all-time highs that month. But even as the domestic equity markets were facing headwinds on account of a combination of geopolitical and macroeconomic concerns, global financial major CLSA said it was raising its India portfolio allocation on account of factors like strong credit impulse, improving external balance dynamics, robust GDP and earnings per share (EPS) growth, increasing profitability, and a supportive macro outlook, among other things. The bullish note by CLSA came as a ray of optimism in an otherwise bearish month—October has been the worst month in CY2023 with the Sensex shedding nearly 3 per…

▸ The combined one-year average market capitalisation of the BT500 companies increased by more than ₹10 lakh crore to ₹261.53 lakh crore during October 2022-September 2023 ▸ The benchmark BSE Sensex witnessed a 16 per cent rise, whereas the BSE MidCap and BSE SmallCap indices surged 32 per cent and 33 per cent, respectively, during the study period ▸ The one-year average m-cap of Mazagon Dock Shipbuilders surged the most, at 271.20 per cent, to ₹21,510 crore during the study period this year ▸ Railway PSU stocks have enjoyed strong support from the Indian government, which provided funding and backing for critical railway infrastructure projects ▸ Analysts believe the government’s commitment to capex and the companies’ order books provide further evidence of earnings visibility…

▸ In FY23, over 60 per cent of RIL’s revenue came from the oil to chemicals business, while retail and digital together brought in 38 per cent ▸ The launch of Jio AirFiber through the standalone route opens up a potentially large broadband market in India ▸ In the last fiscal, its retail segment’s revenue was ₹2.6 lakh crore, up over 30 per cent; the company also added 3,000 stores and 20 million sq. ft ▸ RIL’s digital thrust could lead to generating and processing very large quantities of data, making a case for an even stronger customer connect ▸ Its B2C businesses help in insulating the company from the cyclical nature of oil to chemicals ▸ Scale is expected to help the company, especially in raising debt at competitive…

IN 1996, WHEN Varun Beverages Ltd (VBL) started its operations in Rajasthan’s capital Jaipur, it was a small city that aspired to become a metropolis. Like the city, Ravi Jaipuria—the Founder and Chairman of VBL—had bet on the country’s newly liberalised economy, which promised a glorious future. Two and a half decades later, Jaipuria’s VBL has not only established itself as one of the leading bottlers in the country, its future today looks more promising than ever before. Its home, Jaipur, too, has transformed itself and has more than doubled its population. Over the years, VBL has steadily grown to become a top bottler of fizzy and non-aerated drinks, and it has raced past its rivals in the fast moving consumer goods space. In FY23, VBL’s total income surged 49…

▸ Support through policies, increased budget allocation and big orders from PSUs have helped growth in the sector take off in a holistic manner ▸ Strategic buyouts have led to higher revenues and a more meaningful presence for firms operating in the sector ▸ The 75 per cent capacity utilisation in the manufacturing sector has been a big growth driver for the capital goods industry ▸ Increased government spending will continue to drive revenues and profitability of capital goods firms ▸ With more cities planning and building metro projects, 5G deployment, BharatNet and electrification, demand for the sector looks bright…

▸ Start-ups that have delayed listing are encouraged by the strong investor demand for Mamaearth IPO ▸ The first wave of new-age tech stocks, led by Zomato and Paytm, are beginning to make a comeback in the markets ▸ Improved volumes enabled these companies to curtail losses, offering investors visibility on their potential profitability ▸ Bringing a firm to the public eye compels it to be meticulous in allocating and managing capital ▸ As many as 80 start-ups may hit the public market by launching their IPOs in the next five years…

▸ ESG is a set of metrics used to evaluate a company’s performance on environmental, social, and governance issues ▸ Sebi introduced a voluntary framework called Business Responsibility Report (BRR) in 2012 ▸ In 2021, the BRR was broadened into the Business Responsibility and Sustainability Report (BRSR) framework, mandating the Top 1,000 listed companies to disclose ESG-related information ▸ In July 2023, Sebi announced BRSR Core for ESG disclosures that looks to enhance transparency and combat greenwashing, but increases the compliance burden SOURCE BT RESEARCH…

1 MUKESH AMBANI CHAIRMAN AND MANAGING DIRECTOR, RELIANCE INDUSTRIES ₹7.79 LAKH CRORE TOTAL VALUE OF PROMOTER HOLDING RELIANCE INDUSTRIES OPERATES IN HYDROCARBON EXPLORATION AND PRODUCTION, PETROLEUM REFINING AND MARKETING, PETROCHEMICALS, RETAIL AND TELECOMMUNICATIONS. AMBANI IS ALSO THE PROMOTER OF JUST DIAL AND NETWORK 18—BOTH ARE PART OF THIS YEAR’S BT500 LIST NOTE JIO FINANCIAL HAS NOT BEEN CONSIDERED AS IT WAS LISTED DURING THE STUDY PERIOD BUT DID NOT FULFIL THE CRITERIA OF MINIMUM TRADED DAYS 2 GAUTAM ADANI FOUNDER AND CHAIRMAN, ADANI GROUP ₹7 LAKH CRORE TOTAL VALUE OF PROMOTER HOLDING LISTED ENTITIES SUCH AS ADANI ENTERPRISES, ADANI POWER, ADANI PORTS AND SPECIAL ECONOMIC ZONE, ADANI WILMAR, ADANI GREEN ENERGY, ADANI ENERGY SOLUTIONS, ADANI TOTAL GAS, ACC, AND AMBUJA CEMENTS ARE ALL PART OF THE ADANI GROUP 3 RAJIV…

Overall ranks are based on average market capitalisation (October 2022 to September 2023). ‘Rank 2022’ is as published in last year’s BT500. Parameter ranks are for within the top 1,000 companies. Ranks have been assigned based on multiple decimals. Results are on consolidated priority basis. Figures in brackets denote negative value. ROCE: Return on capital employed; RONW: Return on net worth; NA: Not available; N/A: Not applicable; N/L: Not listed on the bourses; N/R: Not ranked last year. All the latest data for FY 2022-23 unless otherwise indicated; * 12 months ended December 2022; # 12 months ended September 2022; **12 months ended June 2023; ##Latest financial data not available as on cut-off date (September 30, 2023); BFSI (banking, financial services and insurance) companies have a different way of earning…

MOST OF OBEROI Hotels’ expansion coincided with India opening up its economy in the 1990s. Till then, it was still a relatively small business. The gap in the market, to Prithvi Raj Singh Oberoi’s eye, indicated a demand for high-quality business traveller hotels in India. Consequently, he worked towards fulfilling that gap, and today, EIH (the flagship company of The Oberoi Group that runs the hotels business) has a list of impressive properties across the world. THE OBEROI HOTELS ARE AMONG THE BEST OF INDIAN LUXURY HOSPITALITY In his long stint at the helm of the Group, Oberoi, known to friends as Biki, not only consolidated and grew his father’s legacy of building a premium hotels business in India, but also took the brand to many foreign shores, and earned…

India’s capital markets are counted among the most well-regulated and stable ones globally. The National Stock Exchange (NSE) is right at the top globally in terms of the number of trades that take place on it. NSE MD & CEO Ashishkumar Chauhan, 55, wants to focus on the bigger role that bourses can play in the overall economic development of India. Chauhan, an IIT and IIM alumnus, has the unique distinction of heading both the leading bourses, BSE and NSE. In an interaction with Business Today’s Sourav Majumdar and Ashish Rukhaiyar, Chauhan says that Indian exchanges are jointly working towards channelling more household savings into the financial assets space even as they continue to make investors aware of the risks. Edited excerpts: Q: The economy is facing a lot of headwinds due to a combination…

IN JUNE, WHEN 58-year-old K. Krithivasan took over as the MD and CEO of Tata Consultancy Services (TCS), India’s largest IT major and a subsidiary of Tata Sons, one of the first decisions he took was to rejig the organisation, aligning it with the $28-billion tech company’s verticals or business groups. Krithivasan, who has been with TCS for 34 years, has also made sure that his new regime brings existing industry service units (ISUs) in line with business groups. About 200 ISUs now report to the seven business groups within the company. For Krithivasan, this “flip back” is a testament to the agility of the organisation. “We were able to quickly flip into the new structure within about three months or less. Being vertically organised was a very natural state for…

MORE THAN A year after the merger of L&T Infotech and Mindtree created a formidable player in the highly competitive Indian IT space, LTIMindtree—the combined entity—has emerged as the fifth-largest IT services firm in India by market capitalisation in the BT500 study this year. Overall, it has secured the 38th position in the BT500 list. But despite breaking into the top rungs, the company has big plans to grow larger. Debashis Chatterjee, the company’s CEO and MD, says LTIMindtree (LTIM) plans to become a $10-billion enterprise over a period of time. “When we came together as LTIMindtree, we had to set certain goals… where we laid out an aspiration to become a $10-billion enterprise over a period of time,” he said at the Q2FY24 earnings call with analysts. But although…

▸ Bottles and markets key PepsiCo portfolio across 27 states and seven UTs in India—over 92% of PepsiCo’s India business ▸ Investing ₹3,000 crore to expand capacity that will grow over 45 per cent higher than 2022 peak ▸ 30 manufacturing plants in India, at least six abroad, and one upcoming greenfield facility in Congo ▸ Added 500,000 outlets in last 12 months, taking total in India to 3.5 million ▸ Largest bottler in the country in terms of yearly revenue, ahead of arch rival Coca-Cola’s HCCB…

RAILWAYS-FOCUSSED FIRMS, once considered outdated remnants of a past era, have staged a resurgence in the past year by delivering returns on the bourses that would make even the most jaded investor whistle with joy. Market watchers say the government’s focus on improving and growing rail infrastructure in India in the past few years has fuelled this performance. Sample this: The Ministry of Railways received ₹2.4 lakh crore in budgetary allocation in 2023-24, which is 24.10 per cent of the government’s budgeted capital expenditure for the year. It used to be less than 18 per cent till 2018-19. The government’s overall capex has also increased by more than 3x to around ₹10 lakh crore in FY24, from ₹3.1 lakh crore in FY19. As a result, railways-focussed companies have had a…

In the dynamic landscape of India's education system, Mr. Vikas Bharati-led PlanEdu stands tall as a beacon. The learning and career destination is steering students toward inspiring heights with top-notch education consulting. Since its inception in 2008, PlanEdu has been at the forefront of higher education consultancy, pioneering trusted admission guidance and propelling countless students toward inspiring career trajectories. Founder Mr. Vikas Bharati laid the foundation of Plan Edu with a vision to catalyse an empowered and transformed education landscape for world-standard, value-added, and equitable learning opportunities for all. The venture was started with the goal of promoting Indian education and welcoming students from countries like Gulf nations, Indonesia, Philippines, Mauritius, and so on to come and experience the rising standards of Indian Education. Education is a fundamental right, and…

“THE PRICE OF greatness is responsibility.” Legendary British Prime Minister Winston Churchill said these words at Harvard University in 1943. While Churchill wasn’t speaking about the operation and management of companies, his words do hold as sage advice in terms of corporate governance. They are even more relevant in the Indian context, given that several firms have plans in terms of listing and going global but are often reluctant to implement corporate governance practices such as disclosures and transparency, board composition and succession planning. Even companies on this year’s BT500 list have seen their share of problems—be it related to corporate governance (such as at PTC Financial Services, Zee or Adani Enterprises), or issues of cash burn and post-IPO value loss in the start-up sector (such as at Zomato and…

▸ Only 27 per cent of businesses are well-prepared to meet ESG requirements ▸ Only 15 per cent organisations’ suppliers are ready ▸ 80 per cent of organisations report their ESG efforts. The prevalent method used is sustainability reports (81 per cent), followed by ESG reports (50 per cent), and BRSR and integrated reports (44 per cent) ▸ Nearly 75 per cent organisations said they communicate ESG efforts, with awareness programmes (85 per cent) being the most-used method, followed by annual meetings (76 per cent) and investor decks (50 per cent) ▸ Less than half (49 per cent) are well-aware of ESG reporting mechanisms and regulations in India ▸ 68 per cent of firms have been able to integrate ESG strategies SOURCE DELOITTE ESG PREPAREDNESS SURVEY REPORT (MAY 2023), BASED ON A…

Overall ranks are based on average market capitalisation (October 2022 to September 2023). ‘Rank 2022’ is as published in last year’s BT500. Parameter ranks are for within the top 1,000 companies. Ranks have been assigned based on multiple decimals. Results are on consolidated priority basis. Figures in brackets denote negative value. ROCE: Return on capital employed; RONW: Return on net worth; NA: Not available; N/A: Not applicable; N/L: Not listed on the bourses; N/R: Not ranked last year. All the latest data for FY 2022-23 unless otherwise indicated; *12 months ended December 2022; #12 months ended September 2022; **12 months ended June 2023; ## Latest financial data not available as on cut-off date (October 3, 2023); ***Merged entity; ### Piramal Pharma was demerged from Piramal Enterprises; BFSI (banking, financial services…

As the CEO of Sri Chaitanya Educational Institutions founded by her parents, Dr. B. S. Rao and Dr. Jhansi Lakshmi Bai, Sushma is making them proud. Started in 1986 as Sri Chaitanya Girls Junior College, it has now emerged as one of the country's leading educational institutions with over 8,50,000 students, 900+branches across over 250 cities in 26 states. "If there is a student who wants to learn and do well, we want to be there to support them. It's a value we live by," is the credo by which Sushma lives. Right from its founding years, the institution has empowered students with an education that can change their destinies. It focused on preparing higher secondary (11th and 12th grade) students for local and state-level competitive medical and engineering exams.…

THERE is nothing more thrilling than an auction where fortunes change hands and treasures find new homes in a whirlwind of bids. It’s not just about acquiring a possession, but a chance to own a piece of history or obtaining something rare. Auctions are becoming more popular year on year, so much so that Christie’s global sales reached $8.4 billion in 2022, with 34 per cent new buyers being millennials. We look at some upcoming auctions being held across the globe but which give you the chance to bid online. Let the bidding battles begin. KRISHEN KHANNA AstaGuru is set to host three auctions in the month of December, exploring the many facets of both Modern and Contemporary Indian Art. The three auctions, namely the Modern Indian Art auction, the…