Innholdsfortegnelse for 9 June 2024 i Business Today

When Reliance outsmarted Amazon in 2022 by signing fresh lease agreements with the owners of over 800 Future Retail stores, it dealt a blow to the American giant’s offline plans in India. Today, after several twists and turns and courtroom battles, what Amazon reckoned would be a straightforward acquisition of Future Retail by way of its 49% stake in Future Coupons, looks uncertain. The off line piece would have given Amazon India an important engine of growth in a market that is complicated and dynamic. Despite this setback, Amazon India is busy doubling down on its growth plans. Last June, it committed to investing another $15 billion by 2030, taking its total India investments to a hefty $26 billion. That’s ample evidence of the kind of aggressive growth the Jeff…

AAKASH HEALTHCARE, AN arm of Aakash Institute, whose reins currently lie with the embattled edtech firm Byju’s, plans a significant expansion over the next five years. It aims to add 1,000 to 1,200 beds and reach a valuation of approximately ₹3,500 crore. The expansion will initially be self-funded and will add 800 beds. The growth strategy is underpinned by capacity expansion across various medical specialties, including tertiary care and super-specialty hospitals. “The current valuation of our three hospitals totals ₹1,800 crore, earning an annual turnover of about ₹325 crore. We have set our sights to expand significantly over the next five years, self-financing initially to reach a capacity of 800 beds (in the initial phase) across all hospitals,” says Dr Aashish Chaudhry, Managing Director of Aakash Healthcare. The company plans…

AUGUST 2019 Amazon acquires 49% stake in Future Coupons for ₹1,500 crore; gets indirect 4.81% stake in Future Retail Ltd (FRL) AUG-OCT 2020 Reliance Retail agrees to buy Future Group’s retail, wholesale, and logistics businesses; Amazon approaches the Singapore International Arbitration Centre NOVEMBER 2020 CCI gives nod for FRL buyout; Sebi okays deal in January; Reliance takes over lease for FRL’s stores AUG-DEC 2021 Amazon wins case in Supreme Court; CCI penalises Amazon and suspends Future Coupons deal FEB-MARCH 2022 Reliance Retail terminates the lease of over 800 stores owned by FRL and takes complete charge of these stores SOURCE MEDIA REPORTS, INDUSTRY…

GAME CHANGER: The DFCs can bring a paradigm change for logistics movement, as they offer a more reliable means to carry more freight TIME IS OF THE ESSENCE: The Railways is looking to cut down freight transit time drastically with the DFCs REVERSING THE TREND: The Railways is looking to increase its share in freight traffic to 45% by 2050 from 26% now THIS IS THE WAY: The DFCCIL is looking to add non-traditional freight, especially small parcels and e-commerce goods, to increase revenue GETTING THE PRICE RIGHT: But it needs to rationalise tariff to make it competitive vis-à-vis road to attract more players…

ON MARCH 1, 2024, Google pulled 10 popular Indian mobile apps—BharatMatrimony, Jeevansathi, Naukri.com, 99acres, Shaadi.com, Truly Madly, QuackQuack, Stage, Altt, and Kuku FM—due to payment policy violations from its Play Store, only to reinstate them. Since then, there has been much discussion on the need for an Indian app store to break up the Google-Apple duopoly. The tech giants dominate the app world—Google’s Android enjoys 94.94% market share in India, and Apple’s iOS has a 4.22% share. “Indian companies will comply—for now. But what India needs is an App Store/Play Store that is a part of the Digital Public Infrastructure—like UPI and ONDC. The response needs to be strategic,” wrote Sanjeev Bikhchandani, Founder and Executive Vice Chairman of Info Edge—which runs Jeevansathi, Naukri.com, 99acres, among others—on microblogging site X, tagging…

The Cosmic Birla Group, originating from the East, stands as a prominent industrial conglomerate embodying innovation, expansion, and a steadfast dedication to achieving excellence. Initially centered on engineering products and components, the five decade old legacy business, led by a 34-year-old Aditya Vikram Birla, Chairman and Managing Director, has transformed into a diversified enterprise over time. The enterprising leader of the Group took pride in addressing some questions about the Group: What are the key entities of the Group? “Cosmic CRF Ltd, listed on the BSE, serves as the leading entity within the group, providing a wide array of products. The Group’s strategic growth encompasses affiliated companies like AVB Entech, Comet Technocom, Comet Tradecom, Prilika Enterprise, Asansol Steel, Cosmic Steel Castings Ltd & NS Engineering Pvt Ltd. Furthermore, initiatives such…

1 Provide summary of key drivers, both qualitative (including controversies and their impact) and quantitative factors 2 Key drivers are the pillar-wise scores for the components E (environmental), S (social), and G (governance) 3 Weights to be declared of the scores of the three pillars—E, S, and G—in the rating 4 A brief explanation of rating intent to clarify if it represents risks not managed or performance against risks or impacts 5 The ERP must provide a summary of or link to the methodology it used in the rating process quickly…

1 As part of its localisation efforts, Amazon India will offer services in more languages 2 It is doubling down on its seller base, which is at 1.4 million today 3 For this, the thrust on digital will be a strategic advantage 4 It is also looking to increase the product portfolio, which is at 120 million today 5 It will continue to strengthen the infra back-end by adding more fulfilment centres REVENUE ROSTER ❯ Amazon has created a multi-revenue business model in India ❯ It helps reduce dependency on any one area NOTE: *PRIMARILY INCLUDES SALES OF ADVERTISING SERVICES; ALL FIGURES IN % SOURCE: AMAZON SELLER SERVICES ANNUAL REPORT FOR FY23…

FOR A COMPANY that entered the consumer business in India in 2013, Amazon’s growth has not gone unnoticed. It was up against competition that came earlier. But Amazon used its understanding of technology to focus on areas such as supply chain and greater consumer understanding to enhance the overall experience. It was critical to have an India-specific approach and be Indian along the way. With an increasing base of both customers and sellers, the road ahead is filled with opportunities, though these are early days for India. In an interview with Business Today at Amazon’s country headquarters in Bengaluru, 54-year-old Manish Tiwary, Country Manager of Amazon India, talks about the India story, innovation, and a lot more. Edited excerpts: It’s a big opportunity for Amazon in India… We are clear [that]…

• The DFCCIL is looking to cast its net wider in terms of revenue sources, beyond traditional freight STRATEGY 1 Capture unconventional traffic (like FMCG, e-commerce delivery services) via competitive pricing and delivery models 2 Deploy the latest tech solutions (dynamic ETA using Maps, different payment options, tracking via QR code, SMS notifications) 3 One-stop service for all requirements—pick-up, drop, aggregation, packaging and storage 4 Bring rail parcel service to customer’s doorstep—eliminate customer visit to parcel office TARGET 1 Both business-to-business (Amazon, Flipkart, Delhivery, DHL, etc.) and business-to-customer models 2 An app-based system to aggregate scattered demand, bridge first mile and last mile connectivity with advanced cargo tracking 3 Collaborate with small businesses / entrepreneurs to join as agent, hub managers and aggregators 4 Collaborate with Indian Railways and India…

IT IS A fine line to tread. How does one protect consumer interests while maintaining the freedom of the markets? Industry, sectoral experts, and policymakers have been debating this vexing question for long but have found no easy answers yet. In the meantime, India is working on introducing a digital competition law that would have significant ramifications for a host of Big Tech firms—both domestic and foreign—including the likes of Google, Meta, Apple, Amazon, Uber, MakeMyTrip, and Zomato, to name a few. Over the past few years, India has joined a number of jurisdictions globally to work on regulating competition in digital markets. Some of them are also weighing in on a separate legislation for the digital economy with ex ante or pre-emptive regulations for large tech firms. For instance,…

▸ Most countries are examining issues around competition in digital markets and investigating Big Tech firms like Google and Apple ▸ European Union’s Digital Markets Act is ex ante and establishes a set of criteria to identify “gatekeepers” ▸ The UK Parliament is working on the Digital Markets, Competition and Consumers Bill ▸ The US has toyed with the idea of a legislation, but has not come up with one; it is investigating firms ▸ Japan’s Transparency and Fairness of Digital Platforms, 2020, is ex ante law; also has Specified Digital Platform Act…

THE DEVELOPER’S DILEMMA While currently developers have to pay a certain fee to these two app stores, they still opt for them because downloads and discovery matter INDIA STORY Home-grown Indus Appstore saw 100,000 downloads within just 3 days of its launch; the store has 200,000 mobile apps under 40-plus categories THE APP-LESS FUTURE AI assistants could become the new interface of apps. These smart assistants may be able to meet localised needs of the users. Rabbit R1 and Humane AI devices envision this future…

FOR PRADEEP AGGARWAL, Founder-Chairman of Signature Global (India), good corporate governance is not just about complying with rules and stating the said compliance in officialese in the annual report. Aggarwal is a stickler for corporate governance as he knows it defines success in any field—including the fields of the then Gurgaon’s Sector 107 in 2014. That was where (and when) Aggarwal, after two decades in the stock markets, put together a crack team to enter the real estate business as the government pushed the concept of affordable housing. Aggarwal announced his first housing project in 2014, and investors and buyers lapped it up. The project was oversubscribed three times. The prices clicked (up to ₹25 lakh for 1BHK and 2BHK apartments, unbelievably affordable even then). The delivery schedule clicked (announced in…

BUDGET Assess your financial health and future earning potential before you decide to purchase a house ZERO IN ON A LOCATION Proximity to workplace, schools, hospitals, etc., is a crucial factor, as it will impact your quality of life ESTIMATE THE ACTUAL COST OF THE HOUSE Make an estimate of how much the actual cost will be. It includes expenses like registration, stamp duty, etc. EXPLORE GOVERNMENT SCHEMES First-time homebuyers may get some subsidies under certain government housing schemes…

What was the problem you were grappling with? Navigating change in an ever-shifting external market ecosystem, while simultaneously driving internal portfolio transformation. This demanded swift adaptation, strategic alignment, and the agility to maintain our competitive advantage. Whom did you approach for advice and why? My trusted mentor, who is an experienced counsellor, has always been the one I look up to. With an additional decade of wisdom in manoeuvring the corporate world, he has guided me towards finding the most opportune solutions to the challenges I have faced. What was the advice you received? I was told to embrace change, as it is the only constant. He [my mentor] encouraged me to deal with any situation, offering a five-step approach: accept and embrace the fact that change is inevitable and…

SOURCE CMIE ECONOMIC OUTLOOK 1.4 million Number of passenger transport vehicles registered in 2023-24, higher than the pre-pandemic peak of 1 million in 2018-19 22.7% YoY increase in registrations of construction vehicles to 22,040 in 2023-24, well above the pre-pandemic high of 17,963 in 2018-19 55.4% Share of passenger transport vehicles in FY24 of the total commercial vehicle registration, a jump from 45.6% last year…

THE INDIA VIX, also known as the volatility index, experienced a surge of over 100% in just 13 trading sessions till May 13. This sharp surge was propelled by a combination of factors, including the ongoing General Elections in the nation, relentless selling by foreign portfolio investors (FPIs), and broader global dynamics like the US Federal Reserve’s move on interest rates. Serving as a metric for gauging market expectations regarding volatility in the forthcoming 30 days, the India VIX is commonly recognised as the “fear gauge”. Market watchers believe that during the Lok Sabha elections, the markets tend to be volatile, causing concern for traders. In 2019, the India VIX index hit a high of 28.66 during April-May, coinciding with the election period. This index is computed on the basis…

Minal Thukral, Head of Growth & Strategy at CoinDCX, sheds light on these trends, emphasizing the growing sophistication and diversification strategies adopted by HNIs in the crypto market. What are some notable investment trends amongst HNIs globally? HNI investors, renowned for their significant financial resources, exhibit a strategic focus on wealth creation. Apart from investing in conventional markets, in recent times, we've observed a notable trend among HNIs towards diversifying their investment portfolios by exploring new asset classes. One such avenue gaining traction is Alternative Investment Funds (AIFs), which have witnessed remarkable growth, with Assets Under Management (AUM) surging by over 30% in the past year alone. AIFs offer HNIs access to a diverse range of investment opportunities, including venture capital funds, angel investing, real estate ventures, long-only funds, and…

The deal to acquire the Kishore Biyani-promoted Future Retail should have been a breeze for e-commerce giant Amazon. Instead, it is locked in a legal battle with no clarity on the outcome. In 2019, Amazon picked up a 49% stake in Future Coupons, giving it an indirect 4.81% stake in Future Retail, which owned Big Bazaar, FBB, Easyday and a host of other retail formats. This deal is said to have given Amazon the right of first refusal over acquiring Future Retail. Once the pandemic hit, Biyani’s businesses, already heavily leveraged, were in a very challenging position. In August 2020, Reliance Retail agreed to buy out the wholesale, retail and logistics businesses of Future Group for ₹24,713 crore. Amazon cried foul, and approached the Singapore International Arbitration Centre. It got…

STRENGTHS • Faster and assured transit• Higher reliability in terms of time• Can carry longer and heavier loads• It has terminals in uncongested areas• Has land parcels for developing multimodal logistics parks WEAKNESSES • Most terminals are connected through village roads. Connectivity to highways is being pursued• A number of road over bridges/road under bridges are not planned for freight movement• There is high dependence on the Indian Railways for stock and crew• It follows the same pricing mechanism as that of the Indian Railways, though demand-supply economics is reversed• There is a lack of a viable model for carrying light goods/smaller consignments…

▸ The Competition Commission of India imposes penalties on Google, and is investigating practices by firms, including Apple and Meta ▸ The Competition (Amendment) Act 2023 introduces provisions on penalties based on global turnover and deal value thresholds for M&A that will impact tech firms ▸ The Standing Committee on Finance, in its report in December 2022 on anti-competitive practices by Big Tech firms, identifies 10 practices, including anti-steering provisions, bundling and tying; calls for a digital competition bill ▸ The Ministry of Corporate Affairs sets up a high-level committee in February 2023 to look into a digital competition law, submits report in March 2024…

MUMBAI’S AFTERNOON SUN has bathed Glenmark House in Andheri East in a warm glow as Glenn Saldanha, Chairman and Managing Director of Glenmark Pharmaceuticals Ltd, strides into a boardroom for an interview. Saldanha, who has led Glenmark for nearly 30 years, the last 12 as CMD, has had enough of the volatile business of making APIs or active pharmaceutical ingredients, taking debt for working capital and depending on best-selling brands with margins measured in teaspoons. Debt is now a bad word in Glenmark House. Saldanha’s buzzwords now are complex generics and speciality drugs (read: fat margins). Glenmark jettisoned its ₹4,600-crore debt in the second quarter of 2024 by selling a 75% stake in its API business to Nirma Ltd on September 21, 2023, for around ₹5,651 crore. It aims to be…

FOUNDATION SIGNATURE GLOBAL, WHICH STARTED IN AFFORDABLE HOUSING IN 2014, IS TURNING ITSELF INTO A MID-INCOME AND PREMIUM HOME DEVELOPER NEW STRATEGY AS THE AFFORDABLE HOME SEGMENT TURNED UNVIABLE DUE TO THE STEEP RISE IN INPUT COSTS, IT IS NOW FOCUSSING ON HOMES PRICED UP TO ₹3 CRORE IMPLEMENTATION AS A RESULT, THE SHARE OF AFFORDABLE HOMES IN ITS UPCOMING PORTFOLIO HAS FALLEN TO 1%, FROM 50% IN 2017 UNIT REALISATION CHANGE IN STRATEGY AT A CRUCIAL JUNCTURE BOOSTED THE COMPANY’S PER UNIT REALISATION BY 200% BETWEEN FY21 AND FY2 PROFITABLE WHILE PROFITABILITY REMAINED A CHALLENGE FOR THE PAST FEW YEARS, THE COMPANY CLAIMS TO HAVE TURNED PROFITABLE AT THE NET LEVEL IN FY24…

1 India has the largest millennial population at 440 million (34% of total population) 2 Migrant professionals inflate housing prices in major cities like Delhi-NCR, Mumbai, Bengaluru 3 Stagnant wages and rising living costs have squeezed millennial home ownership dreams 4 There are no immediate or even mid-term prospects of price corrections, experts say 5 Millennials should understand that home ownership is a jump, not a wait 6 When investing in property, plan for spaces keeping the next six to eight years in mind…

RONIL GOA There is so much and more happening in Goa that you are always spoilt for choice, but if you are looking for a hotel that truly has the ‘vibe’, Ronil Goa in Calangute, the first JdV by Hyatt property in India and Southwest Asia, is where you should be headed. JdV, which stands for joie de vivre, is a collection of Hyatt hotels that epitomise living your life. So instead of a vanilla check-in at the lobby, you head straight to the 24x7 bar, where they greet you with a shot instead of a welcome drink. The in-house DJ takes note of your music tastes to customise the hotel’s tunes, and the central swimming pool is open till 2 am. Enjoy a floating breakfast, shots, and barbecue by…