Indholdsfortegnelse for 29 September 2024 i Business Today

When Hina Nagarajan took charge of Diageo India (incorporated as United Spirits Ltd) in 2021, her task was cut out. After the $27-billion UK-based alcobev giant Diageo plc acquired United Spirits from controversial liquor baron Vijay Mallya in 2014, the business was on a weak footing owing to continuing legal tangles, mounting debt, and increasing competition from the likes of Pernod Ricard. Diageo India MD & CEO Nagarajan, 59, the only woman CEO of a liquor firm in India, began putting in place a turnaround plan. Key to this was a move towards premiumisation and the decision to get away from the ‘popular’ category. The mission was to be among the country’s top-performing packaged consumer goods brands and take advantage of the growing number of aspirational customers. Consequently, in September…

Introduction Ovarian cancer is one of the most serious threats to women’s health, yet it often goes unnoticed until it’s in an advanced stage. This silent disease is the eighth most common cancer among women worldwide, with nearly 314,000 new cases diagnosed each year1. In India, ovarian cancer is the third most common cancer among women, with an incidence rate of around 10 per 100,000 women, and the mortality rate is particularly concerning, with an estimated 35,779 deaths in 20206. The increasing burden of ovarian cancer in India is attributed to lifestyle changes, increasing life expectancy, and a lack of widespread screening programs?. The late-stage diagnosis remains a significant issue in India, where cultural stigma and limited access to healthcare services further exacerbate the challenge. The Burden of Ovarian Cancer…

ON THE BUSY Vittal Mallya Road in central Bengaluru stands the UB Tower. The 20-storey tower, part of a commercial complex, is home to many high-profile names, including Diageo India, a subsidiary of the UK’s Diageo plc, which acquired United Spirits, India’s largest liquor company by revenue. When United Spirits got under the Diageo umbrella, it was not just a new name for an old business. Diageo is a more aggressive organisation with a distinct multinational culture. The alcoholic beverages major, headquartered in London, has over 200 brands and a presence in 180 countries. For the financial year ended June 30, 2024, Diageo reported revenues of $27 billion, of which 40% came from North America and 24% from Europe. Asia-Pacific contributed 19%, with India’s share in the modest single digits.…

Rambhajo’s journey began in 1921, founded by the visionary Kishan Das Gilara. With a dear mission to provide premium Kundan, Meena, Polki, and Jadau ornaments to Jaipur’s discerning clientele, Gilara’s foresight extended beyond mere business transactions. He understood that true success lies not in short-term gains but in cultivating lasting relationships. This trust garnered through this unwavering commitment ethos drove him to prioritize quality, ensuring that every piece crafted by Rambhajo’s was a masterpiece of excellence. The to superior craftsmanship has been passed down through generations and remains the cornerstone of Rambhajo’s today. As Rambhajo’s celebrates its 100th anniversary, it honors a legacy as rich and vibrant as the jewelry it creates. From its humble beginnings in Jaipur, the brand has grown into one of the largest wholesalers of Kundan,…

The rise of Sowparnika Projects is fuelled by Ramji Subramaniam’s unwavering commitment to making homeownership accessible, affordable and secure, real estate sector. For many first-time homebuyers, the dream of owning a home is often hindered by financial obstacles. Understanding these challenges, Subramaniam crafted a customer-centric approach at Sowparnika. One of the most notable innovations under his leadership is the No Pre-EMI scheme, which allows buyers to postpone EMI payments during the initial years of ownership. This initiative significantly reduces the financial strain on new homeowners, making the transition Into homeownership smoother and more attainable. “We believe in creating opportunities, not just buildings,” Subramaniam asserts. This philosophy is reflected in Sowparnika’s flexible payment plans and competitive pricing structures, designed to bring home ownership within reach of a wider audience. By prioritizing…

IF YOU HAVE been keeping your air conditioners and fans on for longer and are paying more for food items in recent years, it’s interconnected. This is because rising temperatures have not only made the summer months longer and hotter but have also impacted food production—increasing everything from your electricity to grocery bills—a stark reminder that climate change is upon us. Scientists have been warning for long that the earth’s surface temperature is rising, but it appears to be increasing at a faster pace now. Consider the evidence: according to official data, average mean surface temperature in India has risen from 25.61° C in 2012 to 26.15° C in 2023. The mercury in the last few summers has touched and even crossed the 50° C mark in several Indian cities. The…

RAMESH CHAND, MEMBER of the policy think tank NITI Aayog, highlights several reasons for high food prices in recent years, including the Russia-Ukraine war. One factor that poses a significant challenge is climate change. It is already impacting cropping patterns, he says, and though technology has helped counter it for now, there is an urgent need to address the problem. Edited excerpts: How do you see extreme weather events related to climate change impacting cropping patterns and food output in the coming years? Climate change manifests in many ways. One is that farmers change production choices. For instance, if they are cultivating wheat, which is sensitive to climate change, there is a possibility that they could be forced to choose a hardy crop as a substitute. Second, the increase in…

VENTURE CAPITAL FIRM Athera Venture Partners’ office is tucked away in a small lane in Bengaluru’s Domlur area. It is housed in a modest building, and the set-up is spartan, a sharp contrast to the VC landscape, where firms are generally known to be more ostentatious. In many ways, the set-up is emblematic of Athera’s functional approach of focussing its attention on picking the right companies to invest in, something it prides itself on, and paying as little heed to other things as possible. In the large, austere conference room, which just has some wood panelling, the firm’s four General Partners gather for a freewheeling chat. Soft-spoken Samir Kumar, 62, his tone firm, speaks of how he and his colleagues—General Partners Parag Dhol (56), Rutvik Doshi (48), and Rajiv Mehta…

▸ FURNITURE MAKERS ARE CRAFTING NEW LUXURY FURNITURE DESIGNS USING LEATHER, GLASS, METAL, ETC. TO ENTICE BUYERS ▸ THE INTERPLAY BETWEEN TRADITION AND MODERNITY, LOCAL CRAFTSMANSHIP AND GLOBAL DESIGN, IS RESHAPING THE INDUSTRY ▸ DUE TO RISING DISPOSABLE INCOMES, URBANISATION AND AESTHETIC AWARENESS, MORE PEOPLE ARE BUYING HIGH-END FURNITURE ▸ LUXURY FURNITURE MADE FROM WOOD AND METAL IS GAINING POPULARITY IN INDIA DUE TO ITS HIGH AESTHETIC VALUE AND DURABILITY ▸ THE INDIAN FURNITURE MARKET, CURRENTLY VALUED AT $20 BILLION, IS EXPECTED TO GROW TO $34 BILLION BY 2028…

Move over gin; there is a new kid on the block, and it is creating waves at bars all over India. We are, of course, talking about tequila. Consider this: Last year, about 123,000 cases of tequila were sold in the country, up from around 68,000 cases in 2022. This is a significant increase from the pre-pandemic times in 2019, when 38,950 cases were sold. Considering these trends and prevailing consumer preferences, the market for tequila in India is expected to grow at a compound annual rate of 12.69% from 2024 to 2032, according to the India Tequila Market Report 2023. It projects the value of tequila consumption to surpass ₹2,000 crore by 2028. This surge will be fuelled by global drinking trends and the rising popularity of premium and…

SOURCE CMIE ECONOMIC OUTLOOK 5.8 MILLION HECTARES The area under sugarcane crop as of August 12, 2024, from 5.6 million hectares a year ago 16.4 PER CENT Increase in income expected for sugarcane farmers in FY25; the previous year had recorded a fall of 5.7% income 80 PER CENT Contribution of Maharashtra, Karnataka, and Uttar Pradesh to India’s total sugarcane production…

BELEAGUERED ONE97 Communications, which runs fintech major Paytm, is under the regulatory scanner yet again. This time, for issuing employee stock option plans (Esops) to its Founder and CEO Vijay Shekhar Sharma, who does not fall under the promoter classification. The company has received a show-cause notice from the markets regulator, the Securities and Exchange Board of India (Sebi). The issue dates back to FY22, when the company granted 21 million Esops to Sharma prior to the initial public offering (IPO), with the intention of vesting them equally over the next five years. The scrutiny now centres on Sharma’s classification as a public shareholder, considering his role and influence within the company. This is critical because Sebi’s regulations strictly forbid promoters from receiving Esops. The company has stated that it…

THE HAZE THAT has enveloped edtech major Byju’s looks unlikely to clear up any time soon. The latest in a long string of setbacks is the sudden resignation of the embattled firm’s auditor, BDO (MSKA & Associates). The BDO exit, significant in itself, comes just a year after the similarly abrupt exit of Deloitte as the firm’s auditor. BDO’s tenure was supposed to last five years. BYJU’S ALSO HAS TAX CLAIMS OF MORE THAN ₹840 CRORE Add that to the recent developments and you get an idea of the enormity of the challenges confronting Byju’s. Insolvency proceedings that the company had challenged have been reinstated. And just last month, the Supreme Court ordered the formation of a Committee of Creditors under Pankaj Srivastava, the Insolvency Resolution Professional. Siddharth Chandrashekhar, Senior…

▸ Diageo’s acquisition of troubled United Spirits gave it a strong foothold in India’s fast-growing alcobev market ▸ Globally, Diageo has a turnover of $27 billion; while India’s share is small, there is a huge opportunity with rising consumer affluence ▸ One of the key decisions Hina Nagarajan took after taking charge of Diageo was to exit the popular category ▸ From 18-24 months taken to launch a new brand, the timeline is down to six to nine months, in a bid to make the company more agile ▸ Launches like Royal Challenge American Pride and Johnnie Walker Blonde have increased visibility and profitability…

Kolkata, the city of palaces and cultural richness, is home to many inspiring individuals who have made significant contributions to various fields. Among them Siddhartha Dikshit, a distinguished graduate of Computer Science and holder of a Master’s degree in Business Administration. Since 2006, he has been at the helm of ILICO SERVICES LIMITED and Vehement Technologies Pvt Ltd as their Managing Director. His journey from a curious child with dreams of business to a global leader in ERP software is nothing short of remarkable. Siddhartha’s fascination with software development, especially ERP (Enterprise Resource Planning) systems, has been a driving force behind his career. His vision was clear: to provide customized ERP solutions on a global scale. This vision came to fruition with the establishment of ERP.BZ, a flagship product of…

In a sector historically dominated by a few national players. Viacation is making its mark as a dynamic start-up with a clear mission: to create a travel brand that truly prioritizes the individual. The name itself, a play on “vacation” with an added “i,” symbolizes the company’s focus on individual needs—whether it be the customers or the team members who form the backbone of the brand. This “People First” philosophy is the cornerstone of Viacation’s operations, influencing everything from talent acquisition to customer service. Jatinder Paul Singh’s extensive 25 years of experience with global travel giants like KUONI, Thomas Cook, Cox & Kings, and Ebix-Via.com has uniquely equipped him to lead Viacation. His leadership philosophy, which he describes as “process with people,” has been instrumental in his success, and now,…

Sharat Kumar Sahu’s early life was a testament to resilience and ambition. Born into a family of Limited means, he was raised by his mother alongside five siblings, where he learned the invaluable lessons of hard work, perseverance, and determination. Driven by a desire to uplift his family and transform his community, he rose above the challenges to excel in studies to eventually pursue a degree in Agriculture in OUAT with MBA, laying the foundation for his future career. Reflecting on his childhood, Sahu says, Growing up with limited resources taught me the importance of perseverance and the power of dreams. Education was my gateway to a better life, and it instilled in me a passion for creating opportunities for others. Sahu’s professional journey began in the banking sector, where…

Extreme weather events, rising temperatures, and floods are impacting food production Food inflation has become persistent and has pushed up headline retail inflation Its impact is evident on prices of vegetables, cereals, pulses and oilseeds The government is introducing new technologies and climate-resistant variants of crops; it has also placed export curbs to stop price fluctuation It has brought in policies to boost vegetable cultivation, expand production bases to more states However, longer-term solutions for mitigation remain elusive…

1 Launched in 2008 as Inventus India, Athera Venture Partners has deployed about ₹1,200 crore so far 2 The firm believes in identifying opportunities early, and its team engages with the early-stage ecosystem 3 Athera lays a strong emphasis on technology and novel solutions that a company can bring 4 Among its successes are firms like PB Fintech, where it saw returns of 21.3x, and redBus (12.4x returns) 5 The exits are through public listings, as in the case of PB Fintech; and M&As, like with the sale of redBus 6 The firm invests across a host of sectors, the primary requirement being a tech-first approach…

THERE WAS PALPABLE excitement in March 2019 as a new asset class was taking birth. It was finally time for the launch of the initial public offering (IPO) of Embassy Office Parks REIT (real estate investment trust), which marked a partnership between real estate major Embassy Group and private equity giant Blackstone. By the time the IPO ended on March 20, 2019, the issue had garnered a subscription of 2.5 times, with the non-institutional segment seeing 3.10 times subscriptions. This was the first REIT offering to hit the Indian market, even though the asset class had existed elsewhere for some time. REITs typically own a diversified portfolio of real estate assets, which may include commercial buildings, shopping malls, apartments, hotels, or even infrastructure projects. REITs allow individuals to invest in…

ALL-IN-ONE For those in the Apple ecosystem, this watch delivers if you’re looking for an essential companion for a healthy lifestyle. With Apple’s first wide-angle OLED display, the screen is bright when viewed from any angle, making it easier to read. The Series 10 is Apple’s thinnest watch ever and comes in a new Jet Black aluminium colour. Its health features include ECG, detailed sleep stage tracking, and temperature sensing. Running on watchOS with 64 GB of storage, it pairs perfectly with your iPhone. Available on: apple.com/in/watch AI-powered Health With a healthy dose of artificial intelligence, this watch promises to deliver AI-powered health insights and advanced fitness tracking features, sporting a sleek floating design and a new 3nm processor for fast performance. It comes with a BioActive Sensor for precise health tracking,…

THE CENTRAL GOVERNMENT, looking to address the widening skills gap in the Indian workforce, is considering partnering with the University Grants Commission (UGC) to address this pressing need. Jayant Chaudhary, Minister of State for Skill Development and Entrepreneurship, said recently that his ministry is in talks with the UGC to upskill under-graduates. “We are in talks with UGC to upskill undergraduates to build a strong domestic workforce,” he said at the Business Today India@100 Summit. The question of employment and skilling featured heavily in the General Elections earlier this year and was echoed in the Union Budget 2024-25 that was presented in the polls’ aftermath on July 23. Explaining the plan, UGC Chairman M. Jagadesh Kumar says his organisation will offer emerging technology courses like artificial intelligence (AI), data analytics,…

 SINGAPORE-HEADQUARTERED TEMASEK TRUST is at the forefront of philanthropic initiatives. Its parent, the private equity firm Temasek that has a portfolio of $288 billion, allocates a portion of its returns, to community purposes, channeling it to the trust as a philanthropic gift. In an interview with Business Today during his recent visit to India, 61-year-old Desmond Kuek, Executive Director & CEO of Temasek Trust, talks about philanthropy, climate change, and pilot programmes. Edited excerpts: What brings you to India? We have been focussed on four pillars—planet, people, peace, and progress. For the planet, it’s clear that climate and nature are crucial, as are climate mitigation and the whole aspect of adaptation and resilience. We aim to create a greater sense of sustainability for the future. In everything we do, we recognise…

▸ The profitability of these state-owned companies surged, leading to higher taxes and dividends for the central government since 2019-20 ▸ The government’s focus on infrastructure and manufacturing and the banking sector’s reforms boosted PSU performance significantly, reducing the NPAs of these firms ▸ Rising capex and government support are expected to sustain PSU growth. The government now focusses on PSU value creation, professionalisation, and shareholder-aligned metrics ▸ Indian stock markets also acknowledged the impressive turnaround of these firms; PSU stocks outperformed market indices last year, with the BSE PSU index rallying 96% ▸ Investors, on the other hand, are concerned about the high valuations of these state-run companies, and the potential economic and political challenges in the future…

Dr. Manimekalai Mohan, the pioneering Founder of SSVM Institutions, has been a driving force in reshaping Indian education for over 26 years. What began in 1998 as a modest play school at the foothills of the Nilgiris has evolved into a vast network of 15 institutions across Tirupur, Nambiyur, Coimbatore, and Mettupalayam, shaping the academic landscape in Tamil Nadu. Under her stewardship, SSVM has become a beacon of scholastic excellence, nurturing intellectual growth, eloquent expression, and principled leadership within a global framework. Dr. Mohan’s journey is a testament to her unwavering commitment to education. Her leadership has created a robust environment where every child is encouraged to flourish academically, emotionally, and socially. Her deep-rooted belief in inclusive education is demonstrated through initiatives like Athma Seva, a charitable organization established in…

In 2004, Rustom Kerawalla embarked on a mission that would redefine education in India. With a vision to create a future where every child, regardless of socio-economic status, gender, or location, has access to quality education, Kerawalla laid the foundation for what would become the VIBGYOR Group of Schools. Today, his journey stands as a testament to the power of visionary leadership in transforming lives and contributing to nation-building. Kerawalla’s journey began with a single school in Goregaon, Mumbai. From this modest beginning, the VIBGYOR Group has expanded into a network of 39 schools across India, serving over 50,000 students. The schools are celebrated for their holistic approach, integrating academics, arts, and sports to ensure the all-round development of students. This comprehensive education model reflects Kerawalla’s belief that learning should…

Born on December 3, 1977, Sachidanand’s journey began in the vibrant corridors of Vidya Mandir School in Dahisar. Inspired by industrial stalwarts such as Ratan Tata, his aspirations were ignited early, steering him toward a path of relentless pursuit of excellence. These early influences, coupled with his experiences at prestigious companies like Ion Exchange (I) Ltd., Hindustan Lever Ltd., and Blue Dart, laid the foundation for his entrepreneurial ventures. In 1998, he embarked on his entrepreneurial journey with Lords Mark Industries Ltd., leveraging his expertise across various sectors including paper, renewable energy, healthcare, automotive and innovative medtech. Under Sachidanand’s leadership. Lords Mark Industries has witnessed exponential growth, particularly in the past decade. The COVID-19 pandemic brought significant changes to societal lifestyles, influencing business dynamics. Anticipating these shifts, Sachidanand spearheaded the…

20% fall in rain-fed rice yields in 2050 and 47% in 2080 scenarios 3.5% reduction in irrigated rice yields in 2050 and 5% in 2080 scenarios 19.3% dip in wheat yield in 2050 and 40% in 2080 scenarios 18-23% decrease in kharif maize yields in the 2050 and 2080 scenarios 3-10% increase in soya bean yields in 2030 and 14% in 2080 scenarios…

Insurance payout based on a pre-determined set of conditions or parameters rather than actual value of loss Has been available in the agriculture sector for two decades. It is now being added to new sectors like livestock, sericulture, warehousing, renewable energy, hydropower The increase in climate events has given a push to parametric insurance products in India Coverage provided to hedge against impact of extreme weather events on livelihoods and businesses There are 12 products already in the market and customised products are being launched by major players in the insurance and re-insurance arena…

MINIMUM APPLICATION VALUE: Reduced from ₹50,000 to a range of ₹10,000-15,000 SPONSOR HOLDING: Reduced minimum requirement for holding from 25% to 15% in initial three years after listing  BORROWING LIMIT: Increased from 49% to 70% of the value of REIT assets  UNDER-CONSTRUCTION ASSETS: The investment limit has been raised from 10% to 20% of the REIT value DISCLOSURE REQUIREMENTS: Streamlined to reduce compliance burden STRATEGIC INVESTOR FRAMEWORK: Institutional participation encouraged in REIT public offerings TRADING LOT SIZE: Reduced from 100 units to a single unit…

HOW DOES ONE describe A. M. Naik? Feisty, determined, Indian at heart, ambitious, or a proud Larsen & Toubro (L&T) employee? Maybe it’s all of this and more. It is by no means easy to capture such an illustrious journey in a book. Perhaps, the title of the latest book on him, The Man Who Built Tomorrow, comes closest to the truth. Whatever it is, one has to just look around and see the magnitude of L&T’s work to understand Naik’s contribution. From metro rail systems across many an Indian city and abroad, to the 182-metre Statue of Unity in Gujarat, the Atal Setu bridge in Mumbai, the Ram Temple in Ayodhya, the howitzer gun, nuclear reactors, the successful foray into the information technology sector, and water treatment plants, L&T’s…

What was the problem you were grappling with? The biggest challenge I faced was shifting my mindset from trading to investing. Trading and investing are like the North Pole and the South Pole—completely opposite. Initially, I would make money from four or five trades, only to lose it all in the next one. I couldn’t save; it was like playing a game of snakes and ladders where the snake always bit me at 99. The prospect of making quick money lures many into trading, but investing requires patience. Preparing for investing instead of trading was the toughest hurdle I faced. Whom did you approach for advice and why? In my early years, I met an elderly investor, S.P. Modi, in Kolkata, my hometown. He was solely focused on investing in…