Innholdsfortegnelse for 4 August 2024 i Business Today

Corporate battles are always fascinating to chronicle, and India has seen quite a few, big and small. So, it’s not surprising that Indian corporate and business circles are busy discussing the latest boardroom battle that is currently playing out—the feud between the Burman family of Dabur and the board of the ₹6,300-crore financial services company Religare Enterprises, in particular its Executive Chairperson Rashmi Saluja. In a nutshell, the story is that the Burmans badly want Religare, but Saluja and her colleagues on the board are resisting the takeover attempt tooth and nail. Add the regulatory angle with the Securities and Exchange Board of India (Sebi) to the mix and you have the perfect corporate potboiler. The Burmans have been eyeing Religare since 2018 when they picked up a stake in…

THE SECURITIES AND Exchange Board of India (Sebi) has made a series of interventions over the past year to check illegal stock advice being dispensed by financial influencers, or finfluencers, but with limited results. Finfluencer content continues to flourish in the face of repeated strictures from the regulator and the imposition of fines in some instances. That has prompted Sebi to change tack. At a meeting at the end of June, Sebi’s board decided that it was time to crank the pressure up a notch. It will now impose penalties on entities it regulates if they associate with finfluencers who give stock advice illegally. Presenting the new framework after that meeting, Sebi Chairperson Madhabi Puri Buch spelt out the changes. “As you know, we have jurisdiction over entities that we…

FOR MORE THAN 20 years, successive chairmen of the State Bank of India (SBI) have consolidated the lender’s standing as the country’s largest bank. From O.P. Bhatt, who made the elephant dance, to Arundhati Bhattacharya, the first woman to lead the bank, the bank has maintained its top position despite private sector competition. Now, the baton passes to Challa Sreenivasulu Setty, who joined the bank in 1988 as a probationary officer. Setty will replace the current Chairman, Dinesh Kumar Khara, who retires on August 28. Setty, who was promoted to the SBI board as a Managing Director in January 2020, has his task cut out. Building loan portfolios in emerging sectors, expanding the Yono 2.0 app to attract tech-savvy customers, harnessing the power of AI and data analytics for seamless…

RELIGARE ENTERPRISES Ltd’s (REL) annual report for FY23 mentions Rashmi Saluja’s total remuneration as ₹8.12 crore. Of this, salary and allowances accounted for the biggest chunk at ₹5.82 crore, followed by ₹1 crore of guaranteed bonus, and accommodation, car and other perquisites at ₹1.30 crore. A report put out by corporate governance advisory firm InGovern Research Services last November also raised the issue of stock options. “A reading of REL’s annual reports and its key subsidiaries shows the large, vested interest that Rashmi Saluja has due to excessive remuneration as well as regulatory breaches and non-disclosures by the company. In the past three to four years, total valuation of options of REL and of Care Health Insurance, its subsidiary, issued to Saluja is over ₹480 crore. This is in addition…

In a white polo T-shirt, Rashmi Saluja is calm as we speak in the conference room of Religare Enterprises Ltd (REL) in Delhi’s Okhla area. In this interaction held before Sebi’s interim order-cum-show-cause notice, the Executive Chairperson of REL says the regulators are doing their job and the company’s board should be allowed to function. Edited excerpts: Why have things turned hostile between the two parties after the Burmans announced the open offer for Religare? I have a simple point to make. I don’t want to be given credit for the company’s turnaround but at least don’t discredit us. By doing that, you are not just affecting us, but the regulators and shareholders, and the perception of REL takes a beating. If you ask me whether things could have been…

Dr. Minnie Bodhanwala is the CEO of Nowrosjee Wadia Maternity Hospital & Bai Jerbai Wadia Hospital for Children, Pa rel, Mumbai. Transforming the Wadia Hospitals with her dedication, excellence, innovation and sustainable vision, she has pitchforked these charitable semi-government organizations to the forefront as flagship institutions providing quality, safe and affordable healthcare to the underprivileged Women and Children, with facilities at par with top corporate hospitals. With 925 beds and staff strength of almost 1800 including medical, paramedical and administrative staff, she overlooks a huge medical establishment. Choosing to sacrifice her domain of expertise, she embraced hospital management to enhance her sphere of influence and bring succor to a larger swathe of people. Dr. Bodhanwala recalls, "I always wanted to become a Doctor and help the community at large. I…

Enso Group, led by Managing Director Vaibhav Maloo, embodies quintessential Indian values and stands out as a beacon of success in today's competitive business landscape. Founded in 2005 by Chairman Vinay Maloo, the conglomerate has grown exponentially, expanding its footprint across more than ten countries and diversifying into sectors like energy, mining, real estate, solar energy, and healthcare. Enso Group's journey began with strategic ventures into oil exploration in Jordan, which laid the foundation for its rapid international expansion. The company's success is attributed to its robust corporate strategy, characterized by comprehensive analysis, persistent opportunity evaluation, sustainable growth practices, and adept execution of complex business opportunities. Central to Enso Group's success is its commitment to upholding high standards of work ethics, fostering local partnerships, mobilizing financial resources effectively, and navigating…

Status Check ▸ 36 PSUs for which the Centre has given in-principle nod for divestment since 2016 ▸ 5 PSUs are under consideration for closure or have been closed (including Scooters India and Hindustan Fluorocarbons) ▸ 2 PSU disinvestment transactions off the table—BPCL and Container Corporation of India ▸ 11 strategic disinvestment transactions are in various stages of discussion ▸ 5 strategic sales seen in the near future: IDBI Bank, Shipping Corporation of India, HLL Lifecare, Project & Development India, and Pawan Hans On the Block FINANCIAL SERVICES IDBI Bank TRANSPORT & LOGISTICS Shipping Corporation of India, Pawan Hans PHARMA HLL Lifecare, Indian Medicines Pharmaceutical Corporation STEEL NMDC Steel, Salem Steel Plant, Rashtriya Ispat Nigam, Ferro Scrap Nigam OTHERS BEML SOURCE PARLIAMENT PAPERS, RESEARCH REPORTS…

SOURCE: PIB, PTI, MEDIA REPORTS HIGH AND MIGHTY IN JUNE, INDIAN RAILWAYS SUCCESSFULLY TESTED A MAINLINE ELECTRIC MULTIPLE UNIT TRAIN ON THE CHENAB BRIDGE IN JAMMU AND KASHMIR. ONCE COMPLETED, THIS WILL BE THE WORLD’S HIGHEST RAILWAY BRIDGE. HERE ARE THE KEY FIGURES: ₹1,486 crore The cost of the bridge, a steep rise from the estimated ₹512.74 crore per the 2004 contract 359 metres Height of the bridge; surpasses China’s record of 275 metres 120 years Expected lifespan; will be able to withstand wind speeds up to 26 December ₹35,000 crore Cost of the Udhampur-Srinagar-Baramulla Railway Link project, of which the bridge is a part…

1 Fines can be imposed for violations under Regulation 26 Sebi (Stock Brokers) Regulations, 1992 2 Registration certificates can be suspended under Regulation 27 of Sebi (Stock Brokers) Regulations 3 It can initiate prosecution under Section 24 of Sebi Act for offences like trading without registration 4 Sebi can penalise entities for failures such as non-compliance with reporting requirements, improper recordkeeping 5 It can enforce disgorgement of unlawful gains, mandating corrective actions…

“WE WANT TO return the favour to Hero and Honda after 30 years,” Rajiv Bajaj, Managing Director of Bajaj Auto, said during the launch of Freedom 125—the world’s first motorcycle to run on compressed natural gas (CNG). This could mark a defining moment in the domestic two-wheeler industry as Bajaj Auto looks to reclaim leadership in the entry-level two-wheeler segment. Right up until the early 1990s, Bajaj Auto dominated the domestic market with its iconic Chetak scooters. But that changed when Hero Honda introduced the Splendor 100cc motorcycle in 1993. By 1997-98, Hero Honda overtook Bajaj Auto, mirroring a paradigm shift in the industry, which went from being 70% scooters to 70% motorcycles. Bajaj did react with the Pulsar in 2001—which went on to become the highest-selling model in the…

Apple Intelligence takes the wraps off the tech giant’s plans in the Gen AI space. Targeted at consumers, privacy is given priority Apple prioritises on-device processing and secure cloud computing, unlike the data-driven enterprise approach by most other Gen AI firms Apple Intelligence integrates with Chat-GPT, which also enhances its smart assistant Siri, but has privacy protocols in place No user data is stored, and the data is used only with the user’s consent The Gen AI tool is integrated into other Apple services and this, along with its privacy and user-centric features, could make it more popular among users…

ZIM Laboratories Limited (ZIM) stands out in the pharmaceutical industry for its unwavering commitment to innovation and advancements in patient-centric drug delivery solutions. Established in 1989, ZIM has carved a unique niche with its vision of making quality healthcare accessible to all. Copromoted by Dr. Anwar Daud, Chairman and Managing Director, and Mr. Zulfiquar Kamal, Director Finance, ZIM focuses on developing solutions that emphasize patient convenience and treatment adherence. In a highly competitive and ever-evolving market, ZIM has rapidly solidified its position as a therapy-agnostic and R&D-focused Pharmaceutical company. Renowned for developing, manufacturing, and supplying innovative Pharmaceutical and Nutraceutical products in oral solid dosage form, ZIM serves markets across the Rest of the World (RoW), Pharmerging, and Key Developed regions. Under the prudent leadership of Dr. Daud and Mr. Kamal,…

Mathew spent the initial fifteen years of his career at Philips. Thereafter, he has held pivotal roles at Grohe, Racold, and Crompton Greaves Consumer Electricals before joining Watertec India. He has navigated his companies through challenging times such as demonetization and the COVID-19 pandemic, earning recognition from the Great Place to Work Institute for his exemplary crisis leadership at Crompton. He comes with a legacy of empowerment that underscores his commitment to creating positive change and inspiring future leaders in the industry. Mathew's hallmark seems to be tenacity, consistent resilience and foresight. He says, "Any journey of transformation or improvement is a long-distance race and not a sprint. You don't need to be the first one off the blocks to win at the end. Hence one can take some time…

Sachidanand H Upadhyay is the key promoter of Lords Mark Industries Ltd. A technocrat with a keen vision for growth, he leads the group from the front. Born on December 3, 1977, his educational foundation was laid at Vidya Mandir School in Dahisar. However his entrepreneurial aspirations were ignited by the likes of Shri. Ratan Tata. Commencing his professional journey with M/s Ion Exchange (I) Ltd, Upadhyay garnered extensive experience through pivotal roles in renowned corporations such as Nutrients Confectionery, Hindustan Lever Ltd. and Blue Dart, before he ventured out on his own in 1998 with Lords Mark Industries. Leveraging his expertise in the paper industry to find a firm footing in the business firmament, he has since then diversified into Solar/LED industry, Healthcare, Automotive and Pharmaceutical sectors. With a…

HAVE YOU HEARD of RRR? No, we aren’t talking about the Oscar-winning blockbuster film, though this RRR is a blockbuster of a different kind. We’re talking about the trinity of Reforms, Rewards, and Returns, from the lens of market participants. Reforms, if successfully implemented, can provide rewards and generate positive returns. And that, for market participants, is a blockbuster. Let’s break it up. Reform is high on the agenda for Narendra Modi, who recently became India’s Prime Minister for the third consecutive term. With the Union Budget 2024-25 around the corner, expectations are high on the Street of continued policy support across sectors—especially infrastructure, manufacturing, and rural—to sustain the growth momentum, which in turn will boost the markets. Government schemes and policies have contributed immensely to India’s growth in the…

What was the problem you were grappling with? Complexities in e-commerce have been rising with the evolving requirements of brands and retailers. Unicommerce’s technology stack, which acts as the nerve centre for all e-commerce operations, became the support system for some of India’s largest brands. With each aspect of the e-commerce supply chain demanding a specific solution, we moved towards widening the platform’s horizon to address the postpurchase challenges being faced by brands. To enhance the platform’s comprehensiveness, we had to support the new and emerging needs of our clients and also handle their load of transactions, while keeping our platform user-friendly and cost-effective. Whom did you approach for advice and why? Technology is the saviour of all modern-day businesses and like any leader would, I reached out to my…

ADVERTISERS ARE BREATHING easy after a clarification from the Ministry of Information and Broadcasting said that the self-declaration in advertisements will be restricted to the food and health sectors and needs to be done once a year. Welcoming the move, Sandeep Goyal, Chairman of ad agency Rediffusion, says the I&B ministry’s amendment, which came on July 3, is sensible and in the right direction. “The earlier requirement (self-declaration for each ad) was going to create a lot of bureaucracy. This yearly declaration for the food and health categories and probable amnesty for others will save a lot of unnecessary work,” he says. Earlier, the self-declaration rule, which came into effect on June 18, had said that all advertisers and advertising agencies had to obtain a ‘Self-Declaration Certificate’ for ads before…

1 Religare Enterprises’ promoters Malvinder and Shivinder Singh were accused of diverting funds in a group subsidiary between FY14 and FY18, leading to their arrest 2 In December 2018, Religare brought in Rashmi Saluja as Non-executive Independent Director; she was made Executive Chairperson a year later 3 The Burman family, promoters of Dabur, through its entities, had been picking up Religare’s shares in the open market, eventually hitting 25% holding in September 2023, necessitating the 26% mandatory open offer 4 The incumbent Religare management has not sought clearances for the open offer and Sebi’s interim order-cum-showcause notice in June directed them to proceed with it 5 An application made by Religare with SAT resulted in the tribunal on July 10 directing it to file the open offer application while putting…

The Burman family has complained to Sebi that Religare Enterprises Ltd (REL) has refused to apply for open offer approval from RBI The family is willing to discharge its obligation of acquiring shares through the open offer, but REL was frustrating their efforts, says Sebi’s notice It says the rights of REL’s shareholders are sacrosanct and cannot be interfered with or held hostage to the designs of REL’s management REL has to constitute a committee of independent directors to place proposals on the open offer to its shareholders REL’s assertion that Sebi has no jurisdiction to intervene in the matter is misplaced and reflects its contempt for regulatory bodies…

Hygienic Research Institute Private Limited (HRIPL) stands as a beacon of excellence in the Indian beauty and personal care products industry. Founded in 1957, the company has evolved over seven decades to become a multi-brand, multi-category enterprise, focusing on hair care, skin care, and salon services. With a commitment to quality, innovation, and customer satisfaction, HRIPL has established itself as a leader in the market, backed by a professional team, efficient supply chain, and strategic partnerships. At the helm of HRIPL's success is Dheeraj Arora, an accomplished business leader who serves as the Managing Director & CEO. With a career spanning over two decades in the Fast-Moving Consumer Goods (FMCG) sector, Dheeraj has honed his expertise through pivotal roles at Unilever and Britannia, both within India and in developing and…

Micro algae are very essential for soil formation. They play a crucial role in soil's health and fertility. In one gram of fertile soil, there are over 5 million microalgae cells that capture the atmospheric carbon dioxide and biofix it into organic carbon. AlgaEnergy is the biotechnology pioneer who has perfected the process of replicating this natural model to commercially produce microalgae through an advanced circular cultivation model. Using industrial CO2 emissions to grow the algae, they mitigate greenhouse gas effects to produce valuable microalgae biomass. Microalgae Solutions India Pvt Ltd (MASI) used this output to make biostimulants and biofertilizers. These have been tested by leading Agricultural Universities and by millions of end-user farmers. The results have been extremely promising. Debabrata Sarkar's MASI is all about harnessing nature's smallest miracles…

The year was 1976. The city was Mumbai, which was then known as Bombay. Dr. A. F. Pinto laid the foundations of India's premier K-12 chain of schools. Evolving into the Ryan Group of Institutions, it has not grown into a mighty oak of education, comprising 150 institutions spread across 40 cities and 18 states. Under the visionary leadership of Dr. Grace Pinto, it has emerged as the fountainhead of educational leadership, committed to quality education and forward-thinking methodologies. Dr. Grace Pinto's journey has been that of resilience, enterprise, and a passion for societal change. Introducing methodologies and processes that were much ahead of the times, she ushered in a revolution in the rather staid field of education in the country. Any new idea faces resistance and rejection. So did…

2006 Janalakshmi Financial was set up as a private limited company 2008 RBI grants NBFC licence to Janalakshmi; later, it is classified as an NBFC-MFI 2014 TPG Asia invests ₹248 crore in Janalakshmi 2015 Gets RBI approval to convert NBFC to small finance bank (SFB) 2016-2017 Caladium Investment puts in ₹370.5 crore; Bajaj Allianz Life Insurance, Bajaj Allianz General Insurance, ICICI Prudential Life Insurance invest 2018 HarbourVest Partners, ICICI Lombard General Insurance invest; Jana starts gold loans and SFB operations 2019-2020 Launches affordable housing loans; Amansa Holdings and Hero Enterprise Partner Ventures invest; crosses ₹10,000 crore in deposits in Sept 2020; launches two-wheeler loans 2023 Raises ₹560 crore from investors like Radhakishan Damani, Akash Bhanshali, Ashish Kacholia 2023 New investors like Dovetail, Deepak Talwar, Volrado, and Singularity invest ₹306 crore…

DISINVESTMENT RECEIPTS. In a break from the past, this term went missing in the Interim Budget 2024-25. It was replaced by a category called “miscellaneous capital receipts” with a target of ₹50,000 crore for FY25. A closer reading of the fine print of the Budget documents reveals that this includes “receipts on account of management of equity investments and public assets through various mechanisms”. This fresh categorisation is seen to reflect the government’s strategy of a measured approach to stake sales and dividends from central public sector enterprises (CPSEs). This approach ensures that CPSEs are not just seen as a means to raise revenue, but the government also takes measures to enhance and improve their productivity and management. The stance is likely to continue in the Union Budget. Despite concerns…

LACK OF AWARENESS: Many policyholders may not be aware of their cashless entitlement or the process for availing it INFRASTRUCTURE CHALLENGES: Limited internet connectivity and a lack of insurer tie-ups with hospitals in rural areas can hinder cashless transactions POTENTIAL FOR FRAUD AND ABUSE: New systems can introduce vulnerabilities, requiring safeguards to prevent misuse by patients, hospitals, or third-party administrators SECURITY CONCERNS AROUND PATIENT DATA: Cashless transactions involve sharing a patient’s medical information, necessitating strong protocols to protect privacy HIGH COST OF IMPLEMENTATION: Developing and maintaining cashless infrastructure requires investment from insurers, hospitals, and technology providers…