Innholdsfortegnelse for 23 June 2024 i Business Today

The conversation around start-ups for most of the past couple of years has been about the funding winter and how venture capitalists have become obsessed with seeing a path to profitability before investing. But quietly, another trend is building up in the space—that of well-known secondary market investors taking a keen interest in these ventures. Away from the public markets, a clutch of India’s better-known secondary market investors is investing in the unlisted space in the hope of finding interesting startups. These D-Street veterans are some of the most astute investors who are on the hunt for investment opportunities outside the listed space, to get smart returns whenever these start-ups get listed or when valuations go up and they want to exit. In our cover story, Rahul Oberoi decodes the…

THERE HAS BEEN a surge in initial public offerings (IPOs) from small and medium-sized enterprises (SMEs) in recent years. More than 90 SME firms have already gone public in the first five months of 2024. In fact, FY24 saw a record 204 SME public issues, according to data from Prime Database. While this surge indicates a vibrant and growing ecosystem, it has also sparked a debate regarding some firms misusing the segment for personal gain. There have been instances of issues being oversubscribed hundreds of times and stock prices surging despite the absence of any supporting growth in the companies’ fundamental metrics. To ensure better oversight, the Securities and Exchange Board of India (Sebi)—the capital markets regulator—may tighten listing norms. A couple of months ago, speaking about the SME IPO…

Over the last few months, we have already seen extreme weather playing out across the country. Cyclone Remal left the Northeast battered in May and intense heat waves with temperatures soaring to 52 degrees were recorded in parts of the country a few days later. With extreme climate conditions increasing in frequency and intensity, the new Government will perforce have to take action on protecting our environment and ensuring we adopt sustainable lifestyles even as we chase developmental goals. Come monsoons, we are also likely to see either a record decline or surplus rainfall leading to situations like depleting groundwater levels or rise in sea levels. These dramatic changes will have equally-intense reactions - melting glaciers, the Himalayan ranges losing their snow covers impacting the flowing patterns of major rivers,…

Take the case of Aspect's venture into the bullion business, where Aksha and her team decided to offer one consistent price, linked to the live bullion market prices, pan-India. The strategy not only attracted more customers but also built lasting customer loyalty through transparency. In the ultra-competitive infrastructure business, Aksha's foresight ensured Aspect could leverage the business opportunity provided by the government's push for the sector. A firm believer in taking calculated risks, Aksha charted Aspect's foray into multiple segments of the infrastructure business and ensured it benefited significantly when opportunities arose. Aksha's understanding of market dynamics is what led her to focus on sustainable designs for Aspect Realty's luxury and premium housing projects in prime areas of Mumbai. Aspect, under Aksha, has integrated modern amenities that promote eco-friendly living…

What inspired you to start Keertana Finserv? I established a Micro Finance Institution, Spandana in 1998. It became the second-largest Micro Finance Institution by 2009. We were to go public when the Andhra Pradesh (AP) Government implemented an ordinance, bringing microfinance activities in the state to a standstill. The company's net worth plummeted to a negative 1,400Cr and we went into Corporate Debt Restructuring (CDR). With unwavering determination, perseverance, and passion, we successfully emerged from the CDR process, increasing our Assets under Management eightfold and eventually listing it in 2019. The Business faced another setback due to the impact of COVID-19. Micro Finance, as a monoline product, proved highly susceptible, experiencing crises every three to four years. While proud to be one of the pioneers in this emerging industry, there…

Dr. Ajay Bakshi proclaims, "To drive sustainable profits we need to align people strategy, invest in developing people capabilities and align a high performance culture to reward, recognize and retain key talent''. His firm, the Pune based Metamorphosis Unlimited focuses on developing the leadership skills of the existing human resources, to enhance the value of the organization and plot its success. A thorough professional, Dr. Bakshi comes with impeccable credentials. He has a Master's in Business Administration and a Ph.D in Human Resources and Management. A qualified Mechanical Engineer from MIT Manipal, he is a celebrated HR thought leader. An Ex CHRO, Board Director and Business Leader with 30 years of extensive experience in workforce management, he is a veteran in transforming organizations by empowering its people. He is known…

Amazon Web Services is investing in renewable energy for its data centres in India; as of 2022, AWS had an estimated capacity of more than 1.1 GW Yotta’s Mumbai data centre obtains over 50% of its power from hydroelectric sources, without building its own renewable plants CtrlS Datacenters has undertaken initiatives like direct-to-chip cooling that are expected to reduce energy consumption by up to 40% Web Werks-Iron Mountain Data Center prioritises energy-efficient equipment throughout its data centres, including servers, cooling systems, and power distribution units…

To be eligible for subsidy, installation should not exceed 85% of the sanctioned load Subsidy is applicable only for panels made in India Current electricity connection should be in your name Ensure consistency in bank account, electricity bill, and Aadhaar card names Without grid power, one can’t use solar energy. An inverter is needed as a backup when there is no power from the grid Installation requires shadow-free space. For example, installing a 3 kW solar plant requires approximately 300 sq. ft of shadow-free space…

BARBERS EMPLOYED AT A SMALL SHOP IN FARIDABAD, HARYANA SOURCE: CMIE ECONOMIC OUTLOOK 11% Growth in services sector jobs; the total workforce stands at 164.5 million vs 148.5 million in FY23 9.6 million Jobs created in personal nonprofessional services (barbers, carpenters, etc.), making up 60% of new jobs in the services sector 423.3 million Current size of the total workforce in India, which grew 4.3% year-on-year 44% Share of trading services in services sector jobs, followed by personal non-professional services (18%) and tourism (13%)…

FOUR YEARS AFTER the shock of the Covid-19 pandemic, the economy seems to be in reasonably good shape. The gross domestic product (GDP) grew at 8.2% in financial year 2023–24 (FY24), which was the third straight year of more than 7% growth. Tax collections have been robust, and private investments too seem to be staging a revival. The Centre’s fiscal deficit was well controlled at 5.6% of the GDP in FY24, with indications that it could do better than the Interim Budget’s target of 5.1% in the current fiscal. But the results of the Lok Sabha elections show that a coalition government will be formed since no political party has a clear majority. The Bharatiya Janata Party-led National Democratic Alliance (NDA) is just shy of 300 seats in the 543-member…

I JOINED ICICI in 1975 in the legal department. In 1985, when S. S. Nadkarni, the Chairman of ICICI, became the Chairman of IDBI, there was much speculation about his successor. The announcement of Narayanan Vaghul as the new Chairman was met with keen interest. I vividly recall his first day at our Churchgate office in Mumbai. In an era when banking was conservative and senior leaders donned suits, Vaghul, a tall and imposing figure, stood out in a casual bush shirt. When he took over in August 1985, K. V. Kamath was his executive assistant. Vaghul immediately established a Corporate Planning and Policy division under a young Kamath’s leadership, recognising the need for long-term strategy in a changing environment. As the legal department was small, I frequently interacted with…

Can you tell us about your background and what motivated your shift towards sustainability investing? My journey began in 1995 (upon my graduation from my undergraduate studies at Boston College) navigating the intricacies of finance, particularly in investment banking roles at Credit Lyonnais, HSBC, and Citigroup. Transitioning to the buy side in 2004 post my graduate studies at Cornell University, I assumed roles such as Asia Portfolio Manager at Amaranth Advisors, followed by positions at Balyasny Asset Management and DA Capital. However, amidst the challenges posed by the COVID-19 pandemic in 2020, I recognized an opportunity for change. Leveraging our expertise and connections, our Founding Advisors Prof. Soumitra Dutta (Oxford University) and Mrs. Punita Kumar-Sinha (ex-Blackstone), my Co-Managing Partner Rudra Dalmia (ex-PayTM), and I jointly founded Green Frontier Capital, driven…

ON MARCH 26, 2024, BlackRock CEO Larry Fink caused quite a stir. His annual chairman’s letter to investors was in the news for what it did not have. Conspicuous by its absence was the mention of the term ESG (environment, social, and governance). But for those who had followed the $10-trillion asset manager, perhaps this came as no surprise. In June 2023, Fink had said, “I’m not going to use the word ESG because it’s been misused by the far left and the far right.” ESG has been the subject of an intense debate, with some terming it ‘woke capitalism’, especially in the US. As a result, investors pulled out $13 billion from sustainable funds in the US in 2023. Asian markets, too, saw mild outflows in 2023. One of…

$1.5 trillion or annually around $250 billion needed by 2030 for India’s climate mitigation and adaptation goal $10-15 trillion required by India in climate finance to reach net zero by 2070 $8 trillion needed to significantly scale generation of renewable energy and associated integration, distribution, and transmission infrastructure $1.5 trillion would have to be invested in the industrial sector to set up green hydrogen production capacity SOURCE CEEW, WEF, DELOITTE, FICCI, BT RESEARCH…

An enterprise founded in the year 2000 as a contract manufacturer for ITC Ltd. (Foods Division), Prayagh Consumer Care defines the success story of the Lalwanis as they race towards the Rs. 1500 Cr. Turnover landmark. Prayagh Consumer Care can trace its origin to an exclusive contract for manufacturing the CANDYMAN range of Hard-boiled Sugar Confectionery, Toffees and Eclairs for M/S. ITC Ltd. (Foods Division). The company has since grown leaps and bounds with its own portfolio of close to 400 SKUs, ranging from Toffees to Lollipops, Chocolate Enrobed Wafers to Shell Moulded chocolates. With two brands that cater to various stratas of society, they are reaching out to consumers far and wide with a very distinct strategy for each market. Cintu caters to the rural and hinterland markets, while…

FOR JINDAL STAINLESS, exports constitute approximately 15% of sales volume; about 40% goes to Europe. While Europe presents a significant growth opportunity for the stainless steel major, the European Union’s Carbon Border Adjustment Mechanism (CBAM) could have posed a hurdle. But the company’s focus on sustainability and reducing carbon emissions has helped it stay competitive. “CBAM’s transition period, starting from October 1, 2023, imposes extensive data compliance requirements on Indian exporters,” says Abhyuday Jindal, MD of Jindal Stainless. “While CBAM won’t immediately affect our business financially, the financial implications will begin on January 1, 2026.” CBAM, in its transition period till December 2025, mandates that importers of goods in the scope of the new rules will have to report greenhouse gas (GHG) emissions embedded in their imports (direct and indirect).…

NEARLY ONE-FIFTH OF global greenhouse gas emissions in 2022 originated from sectors like iron & steel, manufacturing, construction, etc. These sectoral greenhouse gas emissions pose a significant challenge due to technological and financial hurdles and are classified as “hard-to-abate” (HTA) sectors. Current commercially available decarbonisation technologies (renewables, energy efficiency, electrification, etc.) can only achieve 50-60% reductions—closing the gap, therefore, necessitates developing newer solutions. Particularly for HTA sectors, hydrogen has been identified as a key solution. Many of these sectors require chemical feedstocks, or heavy-duty freight solutions, and face significant barriers towards using low-carbon technologies like renewables. Clean hydrogen offers a versatile alternative, capable of direct use in fuel cells, and as feedstock for producing derivatives, making it crucial for addressing limitations of renewables and enabling deep decarbonisation. It is projected…

EDITED BY TARUN DAS, KIRAN PASRICHA PUBLISHER JUGGERNAUT PAGES 304 PRICE ₹899 IN THE SPRAWLING NARRATIVE of India’s economic evolution, one name stands out as a luminary with profound contributions—Rahul Bajaj. For those growing up in the 1990s, one advertisement that stood out was that of the humble Bajaj Chetak scooter, released in 1989. And added to this was the beautiful jingle that spoke of the aspirations of an India on the cusp of liberalisation. And one can say that Rahul Bajaj’s imprint on India’s industrial landscape is visible, perhaps most vividly, through this advertisement and the now-iconic “Hamara Bajaj” (Our Bajaj) campaign. This marketing marvel not only transformed Bajaj Auto into a household name but also became a cultural phenomenon, symbolising aspirations, dreams, and the spirit of a burgeoning…

PUBLIC PURSE INDIA INC. RAISED MORE THAN ₹4 LAKH CRORE IN THE PAST 10 YEARS THROUGH THE PRIMARY MARKET *TILL APRIL 2024 SOURCE PRIMEDATABASE.COM ₹1.86 LAKH CRORE THE OVERALL VALUE OF PUBLIC EQUITY FUNDRAISING, INCLUDING FROM FPOs, OFS AND OTHER AVENUES IN FY24, UP 142% FROM FY23, ACCORDING TO PANTOMATH CAPITAL ADVISORS ₹1 LAKH CRORE WHAT INDIA INC. MAY RAISE THROUGH IPOs IN FY25, ACCORDING TO PANTOMATH CAPITAL ADVISORS ₹5,971 CRORE THE AMOUNT SMALL COMPANIES RAISED THROUGH SME EXCHANGES IN FY24, TAKING THE FIGURE TO MORE THAN ₹15,000 CRORE IN 10 YEARS, ACCORDING TO PRIMEDATABASE.COM ROBUST RESPONSE THOSE COMPANIES THAT HAVE HIT THE IPO MARKET HAVE SEEN GOOD SUBSCRIPTION NUMBERS ON AVERAGE SOURCE PANTOMATH FINANCIAL SERVICES BIG ISSUES LIC, PAYTM, AND SBI CARDS ARE AMONG THE BIGGEST IPOs THAT HIT…

IN THE face of new requirements and technology, including the focus on sustainability reporting and the advent of AI, the Institute of Chartered Accountants of India (ICAI) is working on new courses to make chartered accountants future proof. In an interview with Business Today, 47-year-old Ranjeet Kumar Agarwal, President of ICAI, discusses these issues as well as the course of investigation into Byju’s. Edited excerpts: The ICAI has recently approved the policy document on the Centre of Excellence (CoE) and plans to set up nine such centres in the next three years. Can you elaborate? The ICAI thinks it is now time to reskill and upskill our members as AI is now the backbone of any knowledge setting by any professional institution. We believe the knowledge of AI is a…

From the late Rakesh Jhunjhunwala to Vijay Kedia, Mukul Mahavir Agrawal, Safir Anand, and Ambareesh Baliga, all ace stock market investors are actively investing in start-ups Pure-play themes, which are often hard to find in the secondary markets, have become favoured pursuits for such investors For these investors the business idea should be solid, and the start-up should not be founded just for the sake of starting one These investors say it is advisable to look at the problems the start-up wants to address The biggest risk is of a start-up going belly-up. Other risks include liquidity, since an investor cannot exit at will…

Tobacco use is a major public health issue worldwide, and its harmful effects extend beyond cancer. It is one of the leading causes of preventable death and disability, with far-reaching consequences. Despite the well-documented dangers of tobacco use, millions of people continue to consume tobacco products such as cigarettes, cigars, and chewing tobacco. In this article, we will look at the various negative health effects of tobacco use. Cancer is one of the most well-known harmful effects of tobacco use. Tobacco use causes a sizeable portion of cancer deaths worldwide. Cigarette smoking, for example, has been linked to lung, throat, mouth, pancreas, bladder, kidney, and cervix cancers, among others. Chewing tobacco can also cause oral cancer. However, the dangers of tobacco use are not limited to cancer. Tobacco use also…

ULTIMATELY, IT ALL boils down to profit. Today’s business landscape goes beyond profit to emphasise how companies impact the planet and people; at the same time, environmental, social, and governance (ESG) criteria guide businesses to make sustainable and profitable decisions. India Inc. has realised that sustainable practices like ESG can indeed be good for business. A recent SAP Sustainability Survey reveals that 77% of Indian businesses saw sustainability strategies contributing to revenue or profit growth to a moderate or strong degree, while 39% of those surveyed are planning to increase investment in sustainability in the next three years (see graphic ‘Towards a Sustainable Future’). Markets regulator Securities and Exchange Board of India (Sebi) has been pushing listed firms to furnish detailed ESG reports since 2012; from FY23, the Top 1,000…

Growth should not come at the cost of people’s rights, health, and quality of life. It is about having a more equitable society THE CONCEPT OF sustainability has undergone a remarkable evolution in the last 50 years. What started as a niche idea has now matured into a global imperative affecting every aspect of human life. A pivotal moment was the Brundtland Commission Report in 1987, which helped mainstream the idea of sustainable development. In the early 2000s, environmental, social, and governance (ESG) and CSR gained popularity and today, sustainability has transitioned from its green origins to embracing a more human-centric approach that recognises the interplay between social, economic, and environmental dimensions. India stands at the forefront of this paradigm shift. Its commitment to sustainable development is evident through its…

Our nation is transforming itself into a juggernaut of progress, changing its identity to emerge as a modern, contemporary nation in the world. However, healthcare is still a niggling area of concern. Recollecting that Mahatma Gandhi said that India lives in its villages, Dr. Satyajit Bose notes, "As a nation we haven't built an equitable healthcare system where the rich and the poor, the city, the towns and the villages have access to equal healthcare infrastructures. You may say that it is difficult to create such a system in a country like India. I say that it is possible and doable". Dr. Bose certainly knows. He has persevered to create an institution that does just that. The NABH accredited Mission Hospital Durgapur were the first to initiate quaternary healthcare in…

ROW AFTER ROW of racks stacked with computer hardware like servers and data storage devices packed into a large, air-conditioned hall. These data centres are the organs that run the networks that power everything from sending a WhatsApp message to initiating online payments to streaming sports matches. They store, process, and manage large amounts of data. And they’ve seen massive interest in recent years because of the breakneck speed of technological advances, particularly Generative artificial intelligence (Gen AI), which requires much higher amounts of computational power. That has sparked a global race to build more data centres. And in India, too, data centres are being built at a frenetic pace. “The average size of the data centres increased from the 20–30 MW range to 50–101 MW. And data centres that…

What was the problem you were grappling with? Back in the day, I was grappling with a difference of opinion with my team. I was using the same yardstick with everyone around me. This came to light during an annual conference, where several members spoke about the unrelenting pressure that was being exerted. I had just taken over the leadership role and my style was quite intense. The feedback came as a rude shock. Whom did you approach for advice and why? Although I did not approach him directly, Anand (Mahajan, who was the Managing Director then and later became Chairman of the company), being the perceptive leader that he was, noticed that I was disturbed. He did not voice any opinion in public, was sensitive and without being intrusive,…