Indholdsfortegnelse for 1 September 2024 i Business Today

Of late, there has been a lot of talk about how millions of new investors are entering India’s stock markets. As many as 122 million demat accounts have been opened since April 2020 alone, out of a total of 158 million till May 2024. On the face of it, that’s good news. However, bolstered by the rising stock indices that are regularly hitting new highs, a large number of retail investors are making a beeline for the Futures & Options (F&O) segment, a part of the market that is known for high risk and complicated products, especially index options. These retail investors are egged on by discount brokerages that offer zero brokerage fees and lending facilities. The new generation of investors has a higher appetite for risk. Besides, there’s easily…

Can you tell us about Property Share and its role in the FOP and SM REIT ecosystem? Hashim and I started Property Share in 2015 pioneering a revolutionary new concept of fractional ownership providing a technology platform with direct access to rent yielding real estate for sophisticated retail investors. In the years since, Property Share became not only the first but also the largest FOP platform in the country both in terms of properties funded and external capital raised. In June 2022, Property Share raised Rs. 347 crores in a Series B round from Westbridge Capital. In time, other FOPs mushroomed mirroring the model, process, structure and ticket size introduced by Property Share. In Mar, 2024 SEBI introduced the SM REIT regulations in order to bring the FOP business within…

January 2023: Hindenburg accuses Adani Group of stock manipulation; Adani Group dismisses allegations February 2023: Supreme Court orders Sebi to probe allegations; Adani Enterprises cancels its $2.5 billion FPO due to market volatility January 2024: The Supreme Court dismisses a plea for an independent CBI probe into the Adani Group June 2024: Sebi accuses Hindenburg Research of sharing its findings on the Adani group with a hedge fund for trading July 2024: Sebi issues a show-cause notice to Hindenburg, for falsely claiming it had no exposure to Adani Group shares listed in India August 2024: Hindenburg says Sebi chief and her husband invested in offshore firms linked to Vinod Adani; Buch family refutes claims…

THE NATIONAL COMPANY Law Tribunal’s decision to allow the liquidation of the Kishore Biyani-promoted Future Retail Ltd (FRL) adds a fresh twist to a long tale. It comes because no resolution plan was approved by the lenders. In April 2022, the committee of creditors, led by Bank of India, filed an insolvency application against the company. In July of the same year, NCLT admitted Future Retail under insolvency. The company has a debt of more than ₹17,000 crore that needs to be repaid to its operational and financial creditors. What happens next and who will get how much are among the big questions. According to Avanti T. Chandele, Partner at Mind Legal, the Insolvency and Bankruptcy Code (IBC) mandates that costs associated with the insolvency resolution process and liquidation must…

1993 Sebi bans badla system that allows carry forward of derivative positions without taking delivery of stock 2000 NSE launches India’s first equity derivatives, starting with index futures based on the Nifty 50 index; BSE starts with Sensex 2001 NSE introduces trading in index options, stock options, and stock futures 2008 STT reduced from being applied to strike price + premium to only premium 2015 Contract value for futures raised to ₹5 lakh by Sebi, putting them out of reach of small investors 2018 Sebi mandates physical settlement for stock derivatives to check speculation; NSE introduces weekly options on Nifty 50 index, increasing frequency of derivative contracts’ expiry 2019 New margin framework unveiled to ensure adequate risk management in derivatives 2021 New norms on margin requirements, restrictions on intraday trading leverage 2022 NSE introduces weekly…

Leaving the pandemic-induced disruptions behind, Titan scaled up its business rapidly to the ₹50,000-crore level in FY24 While a steady rise in gold prices aided its growth, it has recently impacted sales, driving away consumers Post-Covid, Titan’s dependence on gold and jewellery has grown further. Now they account for about 90% of its revenue It is looking at a massive retail and portfolio expansion and premiumisation to attain ₹1 lakh crore in sales Apart from increasing watch sales to over ₹10,000 crore, it will need to double jewellery sales to meet its target…

SUMITA DAWRA, SECRETARY in the Ministry of Labour & Employment, believes that the employment-linked initiative (ELI) schemes—Scheme A for first-timers, Scheme B for job creation in manufacturing, and Scheme C that entails support to employers for additional employment—along with an upgrade of 1,000 ITIs, and internships for 10 million youth in the Top 500 companies, will boost job creation. This has been a key ask of the industry, and the Budget has a number of growth drivers that will generate employment, she says. Edited excerpts: The main focus of the Budget this time has been the ELI schemes. Could you elaborate on these? The Budget gives a lot of detail. The three schemes will ride on the Employees’ Provident Fund Organisation (EPFO) and also align with the existing work of…

Deepak Pandey, the Managing Director of GP Eco Solutions India Limited (GPES), exemplifies transformative leadership in the solar EPC (Engineering, Procurement, and Construction) sector. Going beyond, he is taking his domain expertise to Solar Inverter manufacturing and distribution of solar products. His ascent from a B. Tech graduate to a pioneering entrepreneur highlights a relentless drive for innovation, excellence, and sustainable progress. Deepak's career began with a clear vision for independence and success. In 2009, he launched a proprietorship, setting the groundwork for what would become a significant entrepreneurial journey. By 2011, this initial venture evolved into a private limited company, marking a key milestone. Deepak immersed himself in every facet of project management, from planning to execution, gaining practical experience that solidified his expertise. His commitment to excellence was…

In Maharashtra, the sugar industry is integral to the local economy and the livelihoods of countless farmers. No one understands this better than Dr. Rahul Kadam. Hailing from a farming family, he has a profound understanding of the challenges farmers face. Passionate about making a difference, he has committed himself to harness the best of technology and science to uplift the lives of the people around him. Armed with a Bachelor's in Computer Engineering, an MBA focusing on Marketing and Human Resources, and a Ph.D. in Management, Dr. Kadam's academic credentials reflect a diverse skill set. Dr. Kadam's professional journey began as the Founding President of Udagiri Sugar and Power Ltd. in Khanapur district in 2011. The company was established by his esteemed father, Dr. Shivajirao S Kadam. Learning the…

STRATEGIC REFOCUSSING THE SALE OF ITS NUTRITION BUSINESS AND PARTS OF ITS HOSPITAL CHAIN ALLOWED THE COMPANY TO STREAMLINE OPERATIONS AND FOCUS ON CORE PHARMACEUTICAL AND BIOTECHNOLOGY BUSINESSES R&D INVESTMENTS CONTINUED INVESTMENT IN RESEARCH AND DEVELOPMENT HAS ENABLED IT TO MAINTAIN A ROBUST PIPELINE OF NEW PRODUCTS EXPANSION IN EMERGING MARKETS STRATEGIC FOCUS ON EXPANDING ITS PRESENCE IN EMERGING MARKETS HAS YIELDED POSITIVE RESULTS, WITH REVENUES FROM THESE REGIONS GROWING 15% IN THE PREVIOUS FINANCIAL YEAR IMPROVED REGULATORY COMPLIANCE THE COMPANY HAS MADE SIGNIFICANT STRIDES IN ADDRESSING REGULATORY ISSUES, WITH THREE OF ITS MANUFACTURING FACILITIES RECEIVING USFDA APPROVALS IN THE PAST TWO YEARS DEBT REDUCTION IT HAS CUT COSTS AND OPTIMISED MANUFACTURING PROCESSES, RESULTING IN IMPROVED OPERATIONAL EFFICIENCIES, AND HAS MANAGED TO REDUCE DEBT TO ₹2,112 CRORE IN FY24 FROM…

VINI SRIVASTAV, A 31-year-old New Delhi-based primary schoolteacher, received a phone call from Indraprastha Gas Ltd (IGL) in the afternoon of July 10. The caller, speaking with an air of urgency, informed her that she had an outstanding gas bill and her supply would be cut off unless she paid it immediately. In a soothing and persuasive voice, the caller urged Srivastav to take immediate action and shared a payment link. She was redirected to a website that looked legitimate, complete with her gas connection credentials, including the account ID and registered name, etc. Soon after completing the payment, Srivastav realised that the link shared by the caller had infected her phone. The fraudster quickly emptied her account after gaining access to her mobile phone, while she remained a helpless…

CHASING THE RINGS AT 117 ATHLETES COMPETING ACROSS 16 DISCIPLINES, INDIA SENT ITS LARGEST-EVER CONTINGENT FOR THE PARIS OLYMPICS HELD FROM JULY 26 TO AUGUST 11. INDIA HAS WON 6 MEDALS IN THIS EDITION, COMPARED TO THE 7 IT WON AT THE TOKYO OLYMPICS ₹96.08 CRORE Funding received by athletics, followed by badminton (₹72.03 crore) and boxing (₹60.93 crore) from a total allocation of over ₹470 crore 29 INDIAN ATHLETES Have qualified for athletics, which is the highest, followed by 21 for shooting and 19 for hockey ₹3,442.3 CRORE Allocation for Ministry of Youth Affairs and Sports in Budget 2024-25, a 207% increase since FY15 (allocation of ₹1,121 crore) SOURCE PIB, CMIE ECONOMIC OUTLOOK, OLYMPIC.IND.IN…

IN JANUARY 2023, US-based short-seller Hindenburg Research came out with a report accusing the Adani Group of indulging in billions of dollars’ worth of undisclosed related party transactions, investment and stock manipulation. Now, the controversy has reached the doorstep of India’s capital markets regulator, the Securities and Exchange Board of India (Sebi). Hindenburg has launched a direct attack on Sebi Chairperson Madhabi Puri Buch and the regulatory body, alleging that Sebi has shown a lack of interest in probing the Adani Group’s alleged undisclosed network of shell entities. Sebi, Buch, and the Adani Group have all refuted the latest allegations. In its latest report, Hindenburg has connected the alleged links of the Sebi chief’s family with the Adani Group as reason for the delay in the investigation. “We suspect Sebi’s…

As many as 122 million demat accounts have been opened since April 2020, of a total of 158 million till May 2024 The younger generation, with access to apps and easy research, has appetite for risk and wants to get rich quickly It helps that discount brokerages offer zero brokerage fees and lending facilities Influencers sell options strategies via YouTube, WhatsApp, and Telegram, offering different models, such as subscription-based Options offer lower entry costs and higher leverage compared to futures and cash market trading, and brokers are marketing such products to clients F&O offers a hedging tool for sophisticated investors Exchanges have started pushing volumes by offering weekly options contracts, with expiries every day Entry of algorithmic or high-frequency trading is driving volumes…

NIRMALA SITHARAMAN UNION FINANCE MINISTER, AT AN EVENT IN MAY“Any unchecked explosion in retail trading in the futures and options market can create future challenges for the market, investor sentiment, and household finances” The government has increased STT on F&O in the Budget for 2024-25 Minimum F&O lot value likely to be increased from ₹5 lakh to ₹15-20 lakh, further to ₹20-30 lakh after six months Proposal for weekly options contract to be limited to one benchmark index per exchange, resulting in six weekly contracts a month, from 18 now Upfront collection of options premiums from buyers suggested Strong messaging from regulators and government that stock markets are not a place for gambling Protect household savings, support capital formation, and mitigate possible systemic risk in case of a black swan…

Harish Kohli, a stalwart in the IT industry, has been with Acer since 1999, handling various leadership roles to become the President and Managing Director of Acer India. With a wealth of experience spanning emerging markets, enterprise business models, and talent acquisition, Mr. Kohli has consistently demonstrated an exceptional ability to navigate and thrive in the dynamic tech landscape. His tenure at Acer India has been marked by significant achievements and innovative strategies that have propelled the company to the forefront of the IT sector. TRANSFORMATIVE LEADERSHIP AND MARKET EXPANSION Under Mr. Kohli's visionary leadership, Acer India has become synonymous with innovation and market leadership. He has expertly expanded Acer's portfolio, catering to a wide array of segments, including consumer, gaming, education, government, and enterprise. This broad product range has…

Lata Gullapalli is a highly accomplished investment banker with over 25 years of experience specializing in mergers and acquisitions across South Asia, Russia, and the U.K. Her extensive expertise and strategic vision have earned her positions on the boards of five companies, both commercial and nonprofit, where she serves as a Non-Executive Director. Chairperson of a Nasdaq-listed company, she is also a member of its audit and remuneration committees, exemplifying her proficiency in corporate governance and financial oversight. Throughout her distinguished career, Ms. Gullapalli has advised numerous companies on mergers and acquisitions, financial restructuring, and capital raising. Her innovative approach has led to the design of bespoke capital-raising products. She has also demonstrated significant entrepreneurial prowess by establishing and managing startup companies, devising strategic plans, and securing necessary funding. Her…

Nizam uddin Shaikh's professional journey began in 1996 with a focus on sales and direct marketing, where he demonstrated a keen understanding of market dynamics and built a reputation for excellence. His success in financial and banking products was a prelude to his transition into IT services during the early 2000s tech boom. This strategic move allowed him to secure significant contracts and establish key partnerships, paving the way for his entry into the finance and investment arenas. His tenure as Assistant Vice President at IIFL was marked by his adept use of technological insights to uncover high-potential investment opportunities. This experience laid the groundwork for his entrepreneurial venture, Stanford Capital India Limited, where his diverse background became a powerful asset. As the Founder and Director of Stanford Capital India…

HABIL KHORAKIWALA HAS seen more than his fair share of ups and downs in the nearly 60 years since he founded the Mumbai-based pharmaceuticals company Wockhardt in 1967. But even so, the closure of the company’s US-based manufacturing facility at Morton Grove, Illinois, last year marked a significant shift. Once known for its painkiller Proxyvon and blood pressure medications in the 1990s (the business was later sold to Dr. Reddy’s Laboratories) and being one of the first companies outside the US and Europe to manufacture recombinant human insulin, Wockhardt continues to grapple with financial challenges. In the 1990s and 2000s, the company made a clutch of acquisitions, one of the reasons why its debt ballooned. A decade later, it was caught on the wrong foot when the financial crisis hit…

PANIC GRIPPED 38-YEAR-OLD Delhi-based investor Sandeep Sethi as he frantically switched from his usual investment app to CAMS and MFCentral to verify his mutual fund (MF) holdings. His nervousness was fuelled by the recent uproar over the alleged inaccessibility of funds invested through the popular execution-only platform (EOP) Groww, which sent shockwaves through the investor community. In June 2024, a post on X went viral, alleging financial fraud committed by Groww. The post said the user’s money had been deducted but not invested in MFs, like it was supposed to have been. At 50 million, Groww is the most-downloaded EOP, and Sethi’s hysteria was understandable. But Groww issued a clarification, saying it “found that the customer’s account was showing an incorrect investment due to a [reconciliation] issue” and that it…

THE INDIA STACK INDIANS PREFER UPI OVER OTHER MODES OF PAYMENT, AS IT ACCOUNTED FOR 68% OF TOTAL RETAIL DIGITAL PAYMENTS IN FY24 UPI: UNIFIED PAYMENTS INTERFACE; PPI: PREPAID PAYMENT INSTRUMENT SOURCE HOW URBAN INDIA PAYS - 2024, A REPORT BY KEARNEY AND AMAZON PAY THE DASH OF CASH A SIGNIFICANT PROPORTION OF INDIANS STILL CHOOSE TO PAY WITH CASH THAN WITH UPI AND OTHER DIGITAL PAYMENT METHODS FOR SMALLER TRANSACTIONS NOTE OTHERS INCLUDE DIGITAL WALLETS, CREDIT CARDS, DEBIT CARDS, PREPAID CARDS, BNPL, AND NET BANKING SOURCE HOW URBAN INDIA PAYS - 2024, A REPORT BY KEARNEY AND AMAZON PAY PAYMENT PARITY SMALL TOWNS ARE ALSO EMERGING AS GROWTH CENTRES FOR DIGITAL PAYMENTS NOTE DATA FOR THE PAST 12 MONTHS; *INCLUDES PREPAID CARDS, BNPL AND NET BANKING SOURCE HOW URBAN…

HINDENBURG Madhabi Puri Buch and her husband Dhaval Buch had stakes in obscure offshore funds that were allegedly used to invest in Adani Group stocks The tiny fund had close ties to Adani. The Founder and CIO of the IPE Plus Fund was Anil Ahuja, who was previously a director of Adani Enterprises and Adani Power During Buch’s tenure as a WTM, her husband Dhaval was appointed as a Senior Advisor at Blackstone despite having no prior experience in real estate or capital markets VS BUCH FAMILY The investment was made in 2015 when they were private citizens living in Singapore and two years before Madhabi joined Sebi as whole-time member Decided to invest in the fund because Ahuja is Dhaval’s childhood friend and investor. Ahuja said at no point…

IN BUSINESS, LIFE comes full circle more often than not. In 1997, British Telecom picked up a 21% stake in Bharti Airtel, before exiting that investment in 2001. After more than 20 years, Bharti Global, the international investment arm of Bharti Enterprises, is set to acquire a 24.5% stake from Altice UK—the leading investor in the British firm—in what is now known as BT Group for an estimated $4 billion. In May, Altice, a telecom group founded by Patrick Drahi, raised its stake in BT Group from 18% to 24.5%. Interestingly, this development came before the company announced a restructuring plan that would result in a reduction of 55,000 jobs by the end of the current decade. In India, Bharti Airtel, the listed entity of Sunil Bharti Mittal-led Bharti Enterprises,…

OMEGA, THE OFFICIAL timekeeper of the Olympics since 1932, has stayed committed to precision, innovation, and excellence. From the early days of stopwatches to AI-powered systems that capture the nuances of athletic performance, OMEGA’s journey reflects the commitment to pushing boundaries. In conversation with BUSINESS TODAY, Raynald Aeschlimann, President and CEO of OMEGA and Alain Zobrist, CEO of Swiss Timing Ltd (both are part of The Swatch Group), provide a glimpse of the future of timekeeping. Edited excerpts: How has OMEGA’s partnership with the Olympic Games shaped the company’s identity? Raynald Aeschlimann: The Olympics have become a defining part of OMEGA’s DNA and it represents our values of precision, excellence, reliability, and innovation. For the past 92 years, the world has seen our name being associated with the greatest sporting moments,…

Speculators may move to other risky options like gaming, cryptocurrency, and other forms of trading equities, such as dabba trading A restrictive approach with higher lot sizes would deny genuine retail investors access to hedging tools Liquidity could suffer, leading to higher impact costs for investors when buying index or stocks under F&O The government could also lose more than ₹60,000 crore in tax revenues In a free market, such restrictions could discourage foreign investors and other capital from entering the markets JIMEET MODI, FOUNDER, SAMCO SECURITIES“We as stockbrokers, exchanges, or regulators are not supposed to be in the business of managing an individual’s greed and fear. All we can do is make aggressive awareness about the risk in the product”…

BRANDED JEWELLERY WAS a novelty in 1994, when Titan launched the Tanishq jewellery range, nearly a decade after captivating India’s market with quartz analogue wristwatches and unwinding the monopoly of ‘Timekeeper to the Nation’ HMT. Today, 30 years later, Titan’s branded jewellery division fetches nearly 90% of its revenue. Titan’s gold and jewellery division is growing at a pace that most of its peers in the consumer discretionary market would love to replicate. Although the Covid-19 pandemic’s lockdowns and supply disruptions in 2020 hit demand for consumer discretionary items, Titan reported high double-digit growth in its topline. Between FY21 and FY24, Titan’s revenue grew at a compound annual growth rate of 33.14%, from ₹21,644 crore to ₹51,084 crore. In the same period, its profit after tax grew at a CAGR…

Sharmila Agarwal defies easy categorization. She is not only an accomplished artist but also a compassionate individual who empathizes deeply with others. Her sensitivity allows her to experience and express herself through diverse artistic mediums, and she actively helps those in need. For over twenty-two years, Sharmila has been practicing lkebana, the Japanese art of flower arrangement. Based in Hyderabad, she holds a Master's degree from the Ohara School of lkebana in Japan and has earned the prestigious title of "Koyo," meaning an orange maple leaf in Japanese. Sharmila finds great joy in teaching lkebana to children, valuing their eagerness and quick learning. Many of her students have become lkebana teachers and masters themselves. She founded the Active Teacher's Association of lkebana in Hyderabad and has given demonstrations at international…

Rahul Banerjee, Managing Director of PGP Academy Private Limited, has firmly established himself as a leading figure in India's financial education landscape. Recently recognized as a 40 Under 40 India 2024 Leader, Rahul's journey is marked by his dedication to bridging the financial literacy gap and his innovative approach to education. His impressive credentials, which include a prestigious education from IIM Calcutta and certifications such as the Certified Financial Planner (CFP) and Certified International Wealth Manager (CIWM), have been instrumental in his success. Rahul's extensive experience spans over a decade in the Banking, Financial Services, and Insurance (BFSI) and Wealth Management sectors. This deep-rooted expertise has been pivotal in shaping PGP Academy, an institution he founded in 2018 with a clear vision: to provide accessible, high-quality financial education that empowers…

The indiscriminate use of fertilizers and pesticides in modern farming has raised significant environmental concerns, including the pollution of soil, water, and air. While these chemicals often boost crop yields, their overuse can have severe consequences for the environment, plant health, and human well-being. Addressing this issue requires a collective effort from individuals, organizations, and governments alike. A promising approach involves enhancing plant immunity through the provision of essential macro and microelements, along with biostimulants. This method fosters healthier plants that are better equipped to resist pests, diseases, and environmental stress, thereby reducing the reliance on harmful pesticides and fungicides. Kuna Falghuna Rao, after a distinguished career in senior roles at a multinational company, made a transformative decision in 2021. He left his high-ranking position to establish Srion Agri Solutions…

India’s SaaS market is likely to surpass $50 billion in annual recurring revenue by 2030; combination of AI and Gen AI offers a big growth opportunity VC investments have slowed in the past two years due to a shift towards fundamental evaluations over market share and AI-driven solutions. But, stakeholders say investments are rising VCs are increasingly selective, investing in SaaS companies that leverage AI and have robust business models, while seed investments remain active Faster Gen AI integration in SaaS will open up new opportunities, propelling the sector towards real-world problem-solving with advanced AI…

FINANCIAL PERFORMANCE WOCKHARDT HAS EXPERIENCED FLUCTUATING REVENUES AND PERSISTENT LOSSES OVER THE PAST DECADE REGULATORY ISSUES THE US FDA HAS ISSUED MULTIPLE WARNINGS AND IMPOSED RESTRICTIONS ON ITS PLANTS, IMPACTING GROWTH AND MARKET ACCESS DEBT AND COSTLY ACQUISITIONS THE COMPANY’S AGGRESSIVE ACQUISITION STRATEGY IN THE LATE 1990s AND 2000s LED TO SUBSTANTIAL DEBT, PEAKING AT APPROXIMATELY ₹3,800 CRORE FINANCIAL CRISIS EXPOSURE TO COMPLEX DERIVATIVES DURING THE 2008 FINANCIAL CRISIS FORCED THE COMPANY TO RESTRUCTURE CORPORATE DEBT AND DIVEST ASSETS LIKE ITS NUTRITION BUSINESS AND PARTS OF ITS HOSPITAL CHAIN…

1 NO ADVICE: Most EOP apps don’t provide advice on investments 2 GAMIFICATION: Some apps often have points, badges, etc., turning investing into a game 3 ALGORITHMIC BIAS: Many apps boast of “smart investing” features, recommendations based on algorithms 4 LACK OF FINANCIAL LITERACY: While these apps make investing accessible, they often fall short of providing comprehensive financial education 5 PSYCHOLOGICAL MANIPULATION: Investing apps often bombard users with notifications and alerts, creating a false sense of urgency…