THE ECONOMIC TIMES
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BENNETT, COLEMAN & CO. LTD.
Inside story
Amazon to Grow Large Appliances
Sales in Upcoming Festival Season
With the festive season round the corner, online
marketplace Amazon India is training its sights
on growing its large appliances sales. The
company, which claims a 400% year-on-year
growth in the category driven by sale of was-
hing machines and TVs , plans to ramp up the
installation services. We offer a range of over
60 products across all top brands which will be
expanded further before the festive season,
said Suchit Subhas, category leader for applian-
ces and automotive (parts) at Amazon India.
Disruption: Startups & Tech 6
Union Cabinet
Okays CGST
Refund Scheme
The government has
approved a new metro
rail policy, a scheme to
refund central goods and services
tax (CGST) to industrial units in
Himachal Pradesh, Uttarakhand,
Jammu & Kashmir and the North-
East till 2027, and changes to the
strategic disinvestment policy to
speed up decision-making. The
Cabinet approved the CGST refund
scheme with a budgetary alloca-
tion of `. 27,413 crore, which will
come as a big relief for pharma,
auto and FMCG sector.13
Corporates Struggling to Adjust
Past Credits against GST
A top conglomerate may have to shell out a bit
extra in advance tax this quarter due to an
unusual glitch in the tax returns form. Another
Delhi-based firm, which does not want to bear
any extra tax, may simply deduct the dues
before the GST kicked in on July 1and pay a
smaller net amount.
Economy: Macro, Micro & More 13
llllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll
Roads Ministry to Invite Bids for 11
NHs Under TOT in Mid-September
The road transport and highways ministry is set
to invite bids for 11national highways next
month under its toll-operate-transfer (TOT)
model as it seeks to raise Rs 6,500 crore, a top
government official said.
Economy: Macro, Micro & More 13
llllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll
Govt Bans Export of Gold Items
Above 22-carat Purity
The government has banned exports of gold
jewellery, medallions and other articles above
22- carat purity in a bid to check round tripping
of the precious metal.
Market Tracker
Nifty
Sensex
LAST
9,897.30
31,770.89
% CHANGE
BSE Midcap 15,282.34
BSE Smallcap 15,611.68
Re/US $ 64.15
Gold Std* 28,885#
Silver (`/kg) 38,800#
Brent ($) 50.58
*(`/10gm); #Prices in Bengaluru Compiled by ETIG Database
Should India stop seeing
China as its competition?
41% 57%
YES NO CANT SAY
TODAYS QUESTION
Do you think MBA and engineering courses
are losing their sheen among India's youth?
www.economictimes.com
Birla Hires Old Balaji Hand for New Round of Applause
Ropes in Sameer Nair in bid to make binge-worthy entertainment content for telcos and digital platforms
Online Markets Lose
Edge in Electronics
BRANDS: CREATING DESIRE8
Tata Group Decides to
Say Bye to All Mistry Cos
Almost 50 Shapoorji Pallonji Group entities will be affected by Tata Sons move to snap business ties
Satish.John@timesgroup.com
Mumbai: The board of Tata Sons
under N Chandrasekaran has or-
dered its group companies to scrap
all business dealings with Cyrus
and Shapoor Mistrys SP Group,
putting at risk transactions worth
hundreds of crores of rupees.
The move is a significant step to-
wards terminating all ties with
the Shapoorji Pallonji Group and
indicates that the battle between
the two groups, which was ignited
when Cyrus Mistry was sacked as
Tata Sons chairman in October
last year, is showing no signs of
coming to an end. SP Group holds
about 18.4% in Tata Sons.
Almost 50 companies of the SP
Group will be affected by the Tata
Sons board decision taken on Au-
gust 9. Cyrus Mistry and elder brot-
her Shapoor Mistry each own half
of the privately-owned SP Group.
Emails sent to Tata Sons didnt
elicit any response till press time.
ET reviewed a copy of the letter,
which was sent to one of the Tata
group companies asking it to take
necessary steps to terminate all
business dealings with SP Group.
SoftBank Hits the Road Again, in Talks
with Rivigo to Invest At Least $100 m
Transaction could
value three-year-old
transport service
provider at nearly $1 b
Biswarup Gooptu &
Madhav Chanchani
Bengaluru: SoftBank Group
Corp, the largest investor in Flip-
kart, Paytm and Ola, is in talks
with Rivigo Services to invest at
least $100 million in the surface-
transport logistics provider, ac-
cording to five people aware of the
DECODING SONS BIG BETS
SoftBanks Investment Push
For SoftBank, Flipkart and Paytm mark the start of a big
investment push (after former honcho Nikesh Aroras
exit in June 2016), reports Shelley Singh.18
PPA Rejig: Centre Takes Wind
1.05
1.02
Out of State Discom Bullies
1.26
1.31
Concerned Goyal
-0.05
opposes violation of
-0.66 contracts that have
-1.27 already been signed
0.12
Kaavya.Chandrasekaran
@timesgroup.com
New Delhi: The Centre has taken a
stern view of state distribution com-
panies violating contracts by bully-
ing solar and wind power developers
to cut prices, which bankers say will
discourage lenders and investors.
2% The minister for power, coal, rene-
wable energy and mines, Piyush Go-
yal, has expressed concern at the de-
velopment and has opposed viola-
tion of contracts that have already
been signed.
Goyal is spearheading Indias mas-
Megha Mandavia & Baiju Kalesh
Mumbai: Aditya Birla group chair-
man Kumar Mangalam Birla has
hired Sameer Nair, the former group
chief executive of Balaji Telefilms, to
KUMAR BIRLA WILL INVEST IT WILL MAKE
up to `300 CRORE 15-20 SHOWS
in his personal capacity in across the drama,
Applause Entertainment in romance, crime and
first year of operations thriller genres
It may also occasionally produce movies. The content
studio will make shows in Hindi, Tamil and Telugu to
start with and then move to other languages
We plan to reignite Applause Entertainment to
invest in the creation & distribution of content
in film, television & digital for new audiences &
KM BIRLA, Chairman, Aditya Birla group
Illustration: ARINDAM
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BENGALURU | 20 + 4 PAGES OF ET PANACHE* | .` 3.50 ONLY THURSDAY, 17 AUGUST 2017
Trump Blames Both Sides Rohit Ready to Play
Again for Virginia Violence Behind-the-Scenes Role
AROUND THE WORLD17 SPORTS: THE GREAT GAMES20
*Available only in Bengaluru city
Battle Continues
42 cos and nine According to
firms owned by SP estimates, SP Group
has got business
Group feature in
Tata Sons blacklist worth `20,000 cr
from the Tatas
The directive to since 1980
snap business ties
sent to Tata Group Most TCS campuses,
Tata Motors Illustration: ANIRBAN
cos on Aug 14
SP Groups sole
factories were built
by the SP Group EYE ON DATA SECURITY
connection with the
IT Ministry Seeks
Tatas will be as a An SP Group source
shareholder, said transactions
without board
representation. It
with Tata Group
has been reducing
Details of Great
owns 18.4% stake in over the last few
the Tata Sons years
A top Tata Group source said the
decision to terminate all forms of
business dealings, whether di-
rectly or indirectly, through cont-
The directive has been sent to all
group companies including Tata
Steel, Tata Power, Tata Chemicals
and Tata Motors. Smaller group
Tata Trusts to Raise
Fund for Startups
Firewall of China frameworks, guidelines and
racts or sub-contracting arrange- firms such as Voltas and Trent, standards followed for provi-
ments, with the SP Group came which is chaired by Noel Tata, half-
Tata Trusts is looking Directs 21 handset ding secure transmission and
after disparaging statements brother to Ratan Tata and brother- to raise a fund to storage of data, a senior official
made against Tata Sons by Cyrus in-law of the Mistry brothers, have invest in social sector
makers to submit in the ministry said. The details
Mistry and his associates, with received the order. All Tata group have been sought irrespective of
the intention of casting a negati- companies are said to be acting on
startups in the next few months, security protocols whether the companies make
ve light on the Tata group. the Tata Sons directive. reports Surabhi Agarwal.7 their devices in India or import
for all devices them.
He added that
Our Bureau the govern-
Apart from
Chinese cos, ment will verify
New Delhi: The ministry of firms which the details pro-
electronics and IT has directed have been vided and war-
21 smartphone makers, most of ned of action if
asked to
which are Chinese, to inform it provide details it is revealed
about the procedures and pro- include global that some have
cesses they follow to ensure the players such as failed to meet
deals over the past six months. In security of mobile phones sold Apple and security requi-
Ticket to a New Trip The logistics sector
is poised to benefit
April, the Tokyo-based technolo-
gy-to-telecom conglomerate in-
in India, following reports of da-
ta leakage and theft.
Samsung, and rements. Under
home bred co the IT Act, a
from the rollout of
Rivigo counts Warburg Rivigo has raised over
$100 million GST, which
vested $1.4 billion in Noida-based
Paytm, valuing it at about $7 bil-
The smartphone makers,
which include global players
Micromax company has to
make sure that
Pincus and SAIF Partners as
removed state-
its main investors in debt and equity
financing till date, imposed taxes,
lion. Last week, it acquired a $2.5-
billion stake in Flipkart, taking
such as Apple and Samsung, it keeps the data of users safe.
Chinese makers such as Oppo, Violations can be punished by
The startup is the largest lowering
buyer of trucks in India over
across multiple rounds
transportation
its total investments in Asias Vivo, Xiaomi, Lenovo and Gio- unlimited compensation and
the last two years and is one It scaled up to third-largest economy this year to nee, besides home bred ones penalties of . 5 crore through
costs significantly
2,100 trucks in March $6 billion. such as Micromax have been as- state-level arbitrators.
of the rare startups in India
that has been able to and has more than Deepak Garg, chief executive of ked to provide details about se-
4,000 drivers Rivigo, denied the company is in curity practices, architecture, August 28 Deadline15
receive bank financing
talks with SoftBank. A SoftBank
spokesperson declined to com-
discussions. ing at $200-400 million. These peo- ment.
The investment, if it goes ple declined to be identified as the Rivigo has emerged as a favou- CARGO COS ASKED TO CUT TARIFFS AFTER GST
through, could value the three- discussions arent final yet. rite of investors in the last couple
year-old company at nearly $1 bil-
lion, one of them said, while an-
SoftBank has been ramping up
investments in India at a rapid
of years. Cos Seek Logistics Benefits
other pegged the potential fund- pace, having closed two massive Valued at About . 2,800 cr15 With the implementation of the goods and
services tax (GST) eliminating octroi check posts
TALKS ON TO BUY 10-12% FOR `
. 1,200-1,500 CR
in the country and speeding up transportation
Fairfax Eyes Infibeam Stake of cargo, companies across sectors are now
Prem Watsa's Fairfax Financial Holdings is in advanced haggling with logistics companies to pass on cost benefits in
talks with Infibeam to pick up 10-12% for around . 1,200- the form of lower charges, reports Anirban Chowdhury.8
1,500 crore, report Sneha Shah & Arun Kumar.9
Power Play
Fierce competition in
solar and wind power
This prompted many
state discoms to ask
Centre may send advisory
to states, cautioning
auctions along with
falling gear prices
project developers
to sell electricity at
them about adverse
implications of their
have helped tariffs
tumble to record
lowest available rate
even if contracts
efforts to arm-twist cos
Bankers say the action
lows, making older were signed when by states will discou-
projects look very costs were much rage lenders & investors
costly higher in the sector
sive expansion of renewable energy
capacity, which has made India a India Power in Talks to
world leader in growth of wind and
solar generation.
Buy 110 mw Capacity
The government view is very clear India Power is in talks with
that the legal framework has to be re-
spected. All PPAs, whatever are the three large non-power
legal terms and conditions, they will companies for acquiring
be respected. But if a PPA has a mutu- their renewable generation capacity
al negotiation clause, and somebody
is willing to do it, then what can be do- totalling 110 mw. Due diligence for
ne? he told ET. the assets are currently on.
revive its defunct unit Applause We plan to reignite Applause En-
Entertainment to make binge- tertainment to invest in the creation
worthy entertainment content for and distribution of content in film,
telecom operators and digital plat- television and digital for new audien-
forms such as Netflix, Amazon and ces and new markets, Birla told ET.
Hotstar. The move will position I am excited with the possibilities
Applause to take advantage of the and opportunities that beckon as the
cord-cutting trend audiences telecom, media and entertainment
shifting to video streaming on phones worlds collide and converge.
and other devices from broadcast India is witnessing an increase in
television. content consumption on mobile
Birla will invest up to Rs 300 crore in phones via over-the-top (OTT) plat-
his personal capacity in Applause forms such as Hotstar, Netflix and
Entertainment in the first year of its Amazon Prime video on the back of
operations to make 15-20 shows across an improvement in broadband spe-
the drama, romance, crime and eds, lower 4G internet tariffs and
thriller genres. It may also occasio- cheaper smartphones. Apart from
nally produce movies. The content OTT platforms, telecom companies
studio will make shows in Hindi, such as Reliance Jio Infocomm and
Tamil and Telugu to start with and Bharti Airtel have their own strea-
then move to other languages. ming services.
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2 Namma Bengaluru THE ECONOMIC TIMES | BENGALURU | THURSDAY | 17 AUGUST 2017

Visit This | Workshop

City in Numbers NBF Click Away is a two-day photography workshop for

48.3
citizens aged 55 and above. Organised by Silver Talk-
@Namma_Bengaluru
ies, a social enterprise for elders, it will be conducted

LAKH GoK r entrusted with job of protecting by professional photographer PeeVee. The workshop
includes an introduction to basic photography, composi-
TWO-WHEELERS #Bengaluru lakes. Just coz proceedings tion guidelines, camera know-how and a photo-walk
through Ulsoor Lake. It is priced at `1500 and the par-
IN BENGALURU
AS ON JUNE 30 b4 NGT were stayed doesnt mean GoK ticipants are required to carry their own DSLR cameras.
The workshop starts today at Yogi-sthaan, Indiranagar,
THIS YEAR must not work 2 save lakes at 2 pm. For details, email - mail@silvertalkies.com or
call Nidhi: 9980508000 / Chitra: 9886283816.

SHORT
TAKES
City Airport
Runway
Upgraded
The Bangalore
International
Airport (BIAL)
has completed work on
upgrading its runway.
The work was taken up
in February this year to
support the growing
traffic at the airport.
The project included
the building of two rap-
id exit taxiways (RET).
With the addition of
the two RETs, the per
hour capacity has in-
creased to 38 air traffic
movements (ATMs) and
is set to increase to 44
ATMs per hour.
NSD Cleared
Out of Guru
Nanak Bhavan
The National
School of Dra-
ma (NSD) Ben-
galuru Centres belong-
ings were thrown out
of its Guru Nanak
Bhavan headquarters
in Vasanth Nagar. Ac-
cording to director C
Basavalingaiah, stage
equipment, props and
costumes worth lakhs
of rupees were thrown
on the street by the
state department of
sports and youth em-
powerment, the owner
of the space.
Send your feedback to
ebengaluru@timesgroup.com
FEW SUBWAYS, SKYWALKS
Majestic Looks
Down Upon
Pedestrians
Citys bustling transport hub scores poorly
on pedestrian-friendly infrastructure
Naveen.Menezes@timesgroup.com
Bengaluru: Majestic is Bengalurus
transit nerve centre. The city railway
station, the Metro, the mofussil bus ter-
minal and the city bus terminal are all
within a stones throw of each other. Yet,
this hub scores poorly when it comes to
easy and safe movement of commuters
from one mode to the other.
But for a foot overbridge and an ill-
maintained subway, there is no pedes-
trian-friendly infrastructure in this
bustling centre.
Its exactly two months since Namma
Metro started full-fledged operations on
its Phase I network. Yet, there is no ac-
cess for passengers from the Majestic
Metro station to the KSRTC and BMTC
bus stations. What could be a two-min-
ute hop from the Metro station is cur-
rently a long-winding 15-20 minute trek.
Commuters who wish to switch be-
tween the Metro and train services find
it no less difficult. The choice is to either
take the dirty and ill-maintained under-
ground subway or jaywalk. At any giv-
en time, a number of people risk their
lives to cross the barricade (which is
mainly put up to discourage jaywalk-
ing) to access either modes of transport.
The only consolation is the footover
bridge (with roof shelter) which bridg-
es Gubbi Thotadappa Road to
Dhanvanthri Road. This facility, con-
nected to the subway, helps people to get
down to any BMTCs platform and ac-
cess KSRTC, to some extent.
The existing foot overbridge is help-
ing people access different modes of
transport. It would be good if it is ex-
tended up to the KSRTC terminal and
the Metro station. This will surely pro-
vide safe movement for commuters,
Shiva Kumar, a management profes-
sional, who uses this terminus, said.
The Directorate of Urban Land
Transport (DULT), in its latest report,
has suggested putting up a shelter from
the Metro station to the existing subway.
BMRCL MD Pradeep Singh Kharola
said the corporation is planning to build
a pedestrian skywalk across the Gubbi
Thotadappa Road. We have written to
the BBMP for permission. Once it is
cleared, we will fund the skywalk pro-
ject, he said. All the stakeholders in-
cluding BMTC, KSRTC and BBMP
would hold a meeting to improve inte-
gration of Majestic, he said.
THEY ARE NOT LINKED
There is no access for
passengers arriving at
the Majestic Metro
station to KSRTC and
BMTC bus stations
BBMP Commissioner Manjunath
Prasad said the Palike is spending `130
crore to upgrade six roads in and
around Majestic on tenderSURE guide-
lines. Walkability on 10 km of footpaths
will improve once this is implemented.
BMTC and KSRTC see a total of 4 lakh
footfalls in the Majestic bus stand while
Metros Kempegowda Metro station is
the busiest station.
City civic body deploys THE AFTERMATH OF A RECORD RAIN
its personnel to fog
areas hit by floods
Our Bureau
Mosquito Breeding
Bengaluru: Tuesday mornings un-
precedented rains, which left several
localities in the city flooded even on
Wednesday, have raised the fear of
Raises Epidemic Fears
waterborne diseases. As stagnant wa-
ter becomes breeding ground for
mosquitoes, dengue and malaria
could be lurking around.
The Bruhat Bengaluru Mahanagara
Palike has deployed health personnel
drawn from unaffected zones to launch
awareness campaigns as well as under-
take fogging operations in the flooded
areas of southeast and south
Bengaluru. With sump tanks in many
of these areas flooded with rainwater
and sewage lines overflowing, resi-
dents are being advised to consume
only boiled water. BBMP Health Officer
(South) Dr Manoranjan Hegde said his
priority is to combat typhoid, jaundice
and diarrhoea, which are water-borne
diseases. Another team of health in-
spectors is taking up fogging opera-
tions, primarily to kill mosquito larvae
which breed on stagnant water.
With stagnant water and muck all
over the place, the roads have become a
breeding grounds for mosquitoes, said
Vidya Shankar Narayan, a resident of
JP Nagar. Waterlogging has come
down but we are worried about our RAIN
health. Contaminated water has en-
tered into our sump and the house. We PAIN
are still cleaning them, she added.
Although water in the flood-affected
areas of Bengaluru has receded to a
larger extent, mounds of muck contin-
ue to deface entire neighbourhoods.
Gayathri Kapoor, a businesswoman and water drain network in Koramangala is
resident of ST Bed Layout, was among incomplete. This led to flooding in a few
the many who stayed away from office residential areas. The remaining work
to clean their houses. Pumping out all will be complete in 20 days, he said.
the water is a two-day job. Water entered Gowda blamed loads of thermocol
out kitchen and living room and dam-
aged several household articles. If the
dumped in the drain in Koramangala
for the flooding. We cleared three
city corporation continues to be negli-
gent, our houses will flood again.
truckloads of thermocol from a drain
near Sony World junction. They were
Nishanth N, who works for HP, took a blocking the flow of water, he said
bus to work as his bike, parked in the Residents of Dollars Colony in JP About 36 hours after
basement, is still under water. There Nagar have demanded the widening of
heavy rains pounded
are 15 cars and 40 bikes in the basement the storm water drain. Gowda said,
which is still flooded, he said. Ravi M, a Since the place was once a lake, excess Bengaluru, life has
resident of Koramangala fourth block, rain is likely to flood the area again. been anything but
is distressed by the inadequate meas- A building, which was under con- normal for the resi-
ures taken by the authorities. struction in Ejipura, tilted raising fears dents of Koramangala
BBMP chief engineer (storm water of a collapse. Minister Ramalinga
drain) Sidde Gowda said the strength- Reddy, who inspected the spot, asked the and the surrounding
ening of drains is a work in progress. BBMP to demolish the five-storied areas.
Only 600 metres of the 13.5-km storm building, which incidentally is illegal. N NARASIMHA MURTHY

A TRADITIONAL TWIST

Turmerics the Talk of Town Chefs
Smita.Balram@timesgroup.com
Bengaluru: Care for a hot cup of turmeric
latte? It is, after all, the current hot selling
beverage in the West. The golden milk is
nothing but our good old haldi-ka-doodh
every Indian mothers quick-fix for flu.
Just like rosemary and thyme, which have
gone international, our turmeric is gain-
ing global attention.
Bengalurus eateries too are giving the
aromatic healer its due by taking it beyond
its pinch of worthiness in Indian cur-
ries. Chefs here are celebrating it as a
showcase ingredient.
Turmeric paints the menu yellow
at the newly opened Tobey resto-bar in
Koramangala, in dishes and drinks like
turmeric & honey chicken, turmeric
and curd dip and a turmeric and vodka
cocktail. Co-founder Bency Elizabeth
Oommen says, We are experimenting
with turmeric in continental food. It has
generated a new flavour profile which ac-
tually requires an acquired palate. India
is home to such a vast range of seasonings
that one need not look out of the country for
culinary innovation, she believes.
Its antiseptic property is pushing the
turmeric movement further in times of
rising health-consciousness. Chefs like
Vikas Seth launched the menu of Pan-
Asian eatery Sriracha (earlier Singkong
at UB City) with a bean curd soup with
turmeric, silken tofu
and Chinese wine. He is also working on a
dumpling skin using turmeric. Turmeric
for its colour, flavour and health bene-
fits is being explored in its totality now.
Once known as the cheap saffron of Indian
cuisine, turmeric is being used as an ex-
perimental additive, says Seth.
Other menus that are giving an accent on
turmeric include 48 Degrees East which
Sumatran chicken dumpling skewers
with turmeric. Raw Pressery has recently
launched a turmeric-based cold pressed
juice called Heal. Toast & Tonic used to
serve turmeric leaf ice-cream.
Foodies are experimenting with turmer-
ic at home too. Take the case of food stylist
Ambica Selvams home bakes. I use tur-
meric in both sweet and savoury cakes. I
make custard using turmeric and ginger.
Turmeric hummus, turmeric oatmeal,
spiced apple cakes, pancakes and coconut
laddoos also shape up really well, says
Selvam, who feels that kokum and tama-
rind also have potential for such creativity.
According to food expert Aslam Gafoor,
there has been a shift from culinary
gimmicks like liquid nitrogen and quirky
serve-ware to classic ingredients in the
past one year.
Rediscovering food is trendy. Its now
cool for a chef to use a local ingredient.
Our staple spices, which have been taken
for granted, deserve due recognition.
Forgotten food like turmeric, millets and
broken wheat is the future, he says.

UVCE is on a Sticky Wicket

Despite Scoring a Century ing School of Engineering that was started by
UVCE SV Shetty in 1913. Shetty was an electrical en-
Date with History gineer who worked closely with the education

W
hat pleases the eye on the outside need
not necessarily be in appealing on the
ET EXPLAINS inside. People who live or work in
some of Bengalurus heritage structures, for
THE STORY BEHIND instance, will take you beyond the old-world
THE NAMES grandeur to seepage, crumbling walls, falling
ceilings and broken plumbings. The
University Visvesvaraya College of
Engineering (UVCE), the oldest engineering
college in Karnataka (fifth oldest in India), has
been in a similar pitiful state for years now.
Whats more, the governments solution for
this oversight is not restoration of heritage
structure. Instead, it wants the entire college
to be shifted out to the far-flung Bangalore
University (BU) headquarters at the
Jnanabharathi Campus, under which the KR
Circle-based heritage institution falls. And all
this is happening in UVCEs centenary year.
UVCE is known for producing some of the
brightest engineering minds. The college was
built in 1917 by Sir M Visvesvaraya, the father
of modern Mysore state, who was also the de-
wan from 1912 to 1918. It was initially called as
the Government Engineering College. The
college, along with the Central College (1882)
and Government Arts College (1886) , was
built as a result of the massive irrigation, pow-
The relocation of er and railway projects that received an impe-
tus after the Great Famine of 1882.
Karnatakas oldest UVCE, especially, was an answer to the de-
engineering college mand for skilled workers and supervisors that
these projects required. In the initial days, stu-
and public works department.
Author and academician K Chidananda
Gowda enrolled into UVCE for a five-year un-
dergraduate engineering course in 1959. For
him and many other illustrious alumnus
including aerospace scientist Roddam
Narasimha, computer scientist S Iyengar, sci-
entist Vasudev Kalkunte Aatre, actor Ramesh
Arvind and playwright-filmmaker Prakash
Belawadi the college represents hope, intel-
lectual curiosity and memories.
The campus had a lot of space and many old
trees and I stayed at the adjoining hostel. In
my second year, Visvesvaraya visited the col-
lege. He was 100 years old. I remember seeing
him from a distance and being awestruck,
Gowda said. Most alumnus say the shifting of
the college is impractical. Instead, we can
start new courses at the BU campus and run
the college through multiple campuses.
UVCE is part of the Palace-to-Palace
Corridor conceptualised by architect Naresh
Narasimhan, who listed 40 heritage buildings
in the same stretch. According to him, the gov-
ernments indifferent attitude breaks links
with history. People will not have pride in the
city unless there is historic continuity. We
need to see visual remnants of the past
around us, he said. The shifting has invited
opposition from various quarters. Today, the
All India Democratic Students Organisation
is organising a protest.

invites opposition dents found accommodation at the neighbour- Divya.Shekhar@timesgroup.com

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4  Pure Politics THE ECONOMIC TIMES | BENGALURU | THURSDAY | 17 AUGUST 2017

INDIAN NARRATIVE ENDORSED A SCHEDULED MEETING Border Personnel Meeting comes a day after scuffle in Ladakhs Pangong Lake

US Declares Hizb Officers Talk to PLA Counterparts

as Foreign Terror Issues discussed to
cussed to strengthen existing mech-
anism for peace and tranquility. The
incident (clash) that took place yes-
US Wants India, China
trolled after a drill when both sides
held up banners proclaiming their
right over the area, before returning

Organisation strengthen existing terday (Tuesday) was also dis-

Two months back its
chief Syed Salahuddin
was designated a
global terrorist
DipanjanRoy.Chaudhury
@timesgroup.com
New Delhi: The United States has
designated Hizbul Mujahideen as a
Foreign Terrorist Organisation and
Specially Designated Global
Terrorist, less than two months after
its chief Syed Salahuddin was desig-
nated a global terrorist. The tags aim
to deny HM resources needed to carry
LeT Commander
Lelhari Killed
in Encounter
SRINAGAR: A self-
styled district
commander of
militant outfit
Lashkar-e-Taiba (LeT) was
killed in a brief encounter
with security forces in Pul-
wama district of Jammu and
Kashmir on Wednesday, po-
lice said. The security forces
had launched an anti-mili-
tancy operation in Kakapora
area of Pulwama district fol-
mechanism for peace,
says a senior official
Shaurya.Gurung1@timesgroup.com
New Delhi: Senior officers of the
Indian Army and Chinas PLA
held a meeting on Wednesday to
discuss the clash between soldiers
that took place a day at Pangong
Lake in Ladakh. The Border
Personnel Meeting was, however,
scheduled a week ago.
It was a scheduled meeting in
Chushul (in Leh). Issues were dis-
DIPLOMACY NOTES
cussed, a senior government
to Hold Direct Dialogue to their respective positions.
One-third of the lake is in India and
official said. Both sides raise WASHINGTON: The US two-thirds under Chinese con-
issues during such said on Wednesday that trol. Incursions from the
meetings and meas- it wants India and China Chinese side take place
ures are taken to en- to engage in a direct dia- regularly every year, but
sure that clashes as logue to reduce tensions. The US re- not clashes. A Chinese for-
such that happened on eign ministry said she was
Tuesday are not repeated.
marks came a day after Indian bor- not aware of the incident and
der guards foiled an attempt by
PLA soldiers tried to in-
trude Finger Four and Finger Chinese soldiers to enter Indian ter-
added Chinese troops were com-
mitted to maintain peace along
Five areas, twice, along the ritory along the banks of the fa- LAC. BPMs are held between the
banks of the 135-km long mous Pangong lake in Ladakh. We IndianArmyandPLAatfivelocations
Pangong Lake between 6 am and 9 are encouraging both parties to sit along the LAC on Independence Day
am on Tuesday. ITBP forces blocked and PLA Day every year. India was
the path of PLA soldiers, who alleg- down and have a direct dialogue, looking forward to BPMs that were to
State Department spokesperson
edly pelted stones. The Indian troops be held on August 15, but they didnt
retaliated and a scuffle ensued, in Heather Nauert said at a takeplacebecausePLAdidntrespond
which several soldiers on both sides press meet. PTI to the invites. PLA didnt invite the
were injured. The situation was con- Indian Army for BPMs on August 1.
If Chinese had invited India on Aug 1 & accepted Aug 15
invite, they would have embarrassed themselves

Chinas Dokalam Mistake: Whether

out terror attacks.
The Department of State has desig-
nated Hizbul Mujahideen also
known as Hizb-ul-Mujahideen, also
known as HM as a Foreign Terrorist
lowing information about
presence of militants there,
they said. Ayub Lelhari, dis-
trict commander LeT, was

it Steps Back or Ups Ante, it Will Lose

Organization under Section 219 of the
Immigration and Nationality Act, and
as a Specially Designated Global
Te r r o r i s t u n d e r
Section 1(b) of
E x e c u t ive O r d e r
13224, the US State
Department said in a
Hizb has
statement on
Wednesday. These
claimed re- designations seek to
sponsibility deny HM the resources
for several
attacks, in-
it needs to carry out ter-
rorist attacks. Among
cluding Apr other consequences, all
2014 explo- of HMs property and
sives attack interests in property
in J&K... subject to US jurisdic-
tion are blocked, and
US persons are generally prohibited
from engaging in any transactions
with the group, the Department said.
Hizbul Mujahideen has claimed
responsibility for several attacks, in-
cluding the April 2014 explosives at-
tack in the state of Jammu and
Kashmir, which injured 17 people
terrorism designations expose and
isolate organizations and individu-
als, and deny them access to the US
financial system. Moreover, designa-
tions can assist the law enforcement
activities of US agencies and other
gover nments, the US State
Department notification said.
The US decision to designate both
Salahuddin as a global terrorist and
HM as a foreign terrorist outfit is an
endorsement of Indias narrative on
Kashmir, sidestepping intense diplo-
macy undertaken by Pakistan.
NEW NOS Of the 43 local bodies, BJP won 26, Cong 14 and independents 3. BJP had won 29 local bodies in the last election
killed in the encounter with
security forces in Pulwama,
a police spokesman said.
Lelharis death is yet anoth-
er success in fight against
militancy, he said. PTI
NIA Conducts
Raids on Hurriyat
Sympathisers
SRINAGAR: NIA
has raided
around eight
places across the
Valley, mostly targeted at Sri-
nagar-based businessman
Zahoor Watali known for his
links with separatists. The
searches were carried out at
the residences of Watalis
family, relatives and aides in
Srinagar, Pulwama, Hand-
wara and Baramullah dis-
tricts. NIA also raided house
of Muhammad Shafi Reshi, a
senior advocate associated
with Hurriyat and uncle of
PDP MLC Yasir Reshi. The
agency has raided 7-8 places
in different districts, mostly
connected to Zahoor Watali,
a police official told ET. OPB
KANWAL SIBAL
When the news lacks real content,
exaggeration serves as a filler. This
is true of the latest press reports of
Indian and Chinese patrols clash-
ing on the Pangong lake in Ladakh,
implying a linkage with the
Dokalam standoff and China open-
ing pressure points elsewhere on
our long border with Tibet.
Actually, such jostling on the lake
waters occurs often and is nothing
new. When India plied slower, infe-
rior vessels on the lake and the
Chinese were equipped with speed-
ier, more powerful ones, they had
the advantage and got the better of
us in these jousts, but with India ac-
quiring heavier American-built
boats there is more verve on the
Indian side in such encounters.
This testing of horsepower on the
lake will go on, but the important
thing is that agreed protocols are
being observed and, even if stone-
pelting has taken place according
to unverified reports, no bullets are
being fired by either side. This is
remarkable as men in uniform are
observing discipline and self-re-
straint even when in direct physi-
cal contact with the enemy.
Not much should be read either
into China skipping the ceremonial
border meetings on Independence
Day and failing to invite the Indian
side on August 1 to celebrate the
founding of the PLA, as has been
the established practice in recent
years as part of mutual confidence-
building gestures. For one, the
Chinese seem to have explained po-
litely at the local level their inability
to attend the August 15 ceremonial
meeting in view of the present cir-
cumstances, leaving the door open
for continuing informal friendly
contact on the ground. Actually, if
the Chinese had invited the Indian
side on August 1 and accepted our
invitation for August 15, they would
have embarrassed themselves po-
litically. With their belligerent rhet-
oric at the official level, outrageous
outpourings of the state-controlled
media against India and blinkered
analysis of the situation by their
reputed India experts, a show of am-
ity and goodwill at the India-Tibet
border would have been incongru-
ous, to say the least. They would
have made a mockery of their own
ultimatums and threats. India
ZAHID
would have publicised these border
meetings on days that are of sym-
bolic importance to both sides,
much to the discomfiture of those in
China baying for Indian blood be-
cause of our temerity in checkmat-
ing them on the Dokalam plateau. It
would have been read as a signal
that China is not planning to open
up new fronts and that its bluster
should not be taken at face value.
Those enamoured of China
there are many in the West and more
numerous in India than is warrant-
ed by years of Chinas adversarial
policies towards us and have ro-
mantic notions about it wrongly be-
lieve that as a country it is almost in-
fallible in policy-making because it
calculates and plans carefully in a
longer-term perspective. In reality,
China has made horrible mistakes
internally and externally. The Great
Leap Forward cost millions of lives
and the Cultural Revolution has
proved an absurdity in view of the
rampant capitalism in China today,
the brutal exploitation of its peas-
antry to achieve break-neck econom-
ic growth and Xi Jinpings promo-
tion of Confucian values (and other
sources of Chinese culture) as em-
bodying the spiritual experiences,
rational thinking and cultural
achievements that have nour-
ished the flourishing Chinese na-
tion. Externally, China has alienat-
ed virtually all its neighbours and,
with the breakdown of its ties with
North Korea, has no friend except a
semi-rogue state like Pakistan.
Chinas provocation in Dokalam is
another mistake. Whether it steps
back or raises the ante, it will lose.
The writer is a former
foreign secretary
NAILING CHINESE LIE
Bhutan
Never Gave
up Claims
on Dokalam
DipanjanRoy.Chaudhury
@timesgroup.com
New Delhi: The executive and leg-
islative arms of the Bhutanese gov-
ernment have categorically rejected
Beijings recent claims that
Thimphu considered Dokalam, lo-
cated in the crucial tri-junction
with India, as a part of China.
The records of the latest proceedings
of both Houses of the Bhutanese
Parliament seen by ET do not support
Chinas claim on Dokalam. The re-
cords, instead, make it clear that
Thimphu has been consistently refer-
ring to Dokalam as one of the disput-
ed areas between Bhutan and China,
and that it has never given up its claim
on the territory. Dokalam, along the
disputed border between Bhutan and
China and at the tri-junction (India-
Bhutan-China), is the site of the eye-
ball-to-eyeball troop deployment by
India and China since mid-June.
Last November, for-
eign minister Damcho
Dorjee told Bhutans

Cong Gets a Lift but BJP Wins MP Local Body Polls

RakeshMohan.Chaturvedi
@timesgroup.com
New Delhi: BJP won 26 of the 43
local bodies that went to polls in
Madhya Pradesh but the impact of
the recent farmers agitation that
led to the death of five people in
police firing was visible with the
saffron partys tally falling by
three since the last election while
the Congress won three seats in
Mandsaur, the epicentre of the
protests.
In what could ring alarm bells for
the BJP with the Assembly polls just
a year away, these could be signs of
the party losing ground to the
Congress. The farmers agitation in
July over low prices for their pro-
duce had come as a surprise for the
Shivraj Singh Chouhan govern-
ment. The mishandling of the pro-
tests was clear when the police
opened fire that led to the death of
five farmers. The protests were
launched by several farmers bodies,
including those affiliated to the
Sangh Parivar.
Of the 43 local bodies that went to
polls, BJP won 26, Congress 14 and
three seats were bagged by
Independents. BJP had won 29 local
bodies in the last election. Congress
has increased its tally by five in these
polls from the last time.
That BJP lost three seats- two
wards of Shamgar Nagar Panchayat
and one ward of Garoth Panchayat-
in Mandsaur district should be a
since 2003 and is battling anti-in-
SHAH HEADING cumbency due to a host of reasons.
The Vyapam scam and the farmers
TO MP unrest have got the Chouhan gov-
BJP chief ernment a lot of flak. The voices
within BJP that suggest Chouhan
Amit Shah should be replaced before the polls
have been growing louder in the last
will be few months. Congress is trying to get
spending three its act together in the state with the
party high command ensuring its
days in MP from tall leaders from the state do not fight
each other for supremacy and the
August 18 party paying the price for it in the
Assembly elections.
A weak and divided Congress in
matter of concern for the party as Madhya Pradesh has been BJPs big-
the farmers agitation had taken gest strength. BJP also has a strong
place here. BJP has been in power RSS support base throughout MP.
BJP chief Amit Shah will be
spending three days in Madhya
Pradesh from August 18 where he
will meet party office bearers to
discuss ways of increasing the
partys political footprint.
Meanwhile, BJP has claimed victo-
ry in the local bodies elections with
Chouhan crediting Prime Minister
Narendra Modi and party chief Amit
Shah for this performance. BJP
spokesperson GVL Narasimha Rao
said, Despite repeated claims of the
Congress of revival and its continued
criticism of the state government,
Congress has faced yet another elec-
toral debacle. Rahul Gandhis photo
politics in Mandsaur has been re-
buffed by the people.
National Council that
Dokalam was among
the disputed areas be-
Bhutanese tween the Himalayan
Parliament state and China. He
records do was responding to a
not support q u e s t i o n f r o m
Chinas TsheringDorjee, a
claim on member of the
Dokalam National Council from
the Haa district in
westerm Bhutan, according to the
records of Bhutanese Parliament
seen by ET.
Dorjee made the statement four
months after Bhutan and China had
held the last of the 24 rounds of bor-
der negotiations. As the two neigh-
bours did not hold any further nego-
tiation on the boundary dispute since
August 2016, Bhutan has not reached
a breakthrough with China on the
dispute over Dokalam, persons famil-
iar with the matter indicated.

Nepal PM Deubas Maiden

Foreign Trip Begins with
5-Day India Visit on Aug 23
DipanjanRoy.Chaudhury@timesgroup.com

New Delhi: India is set to host Nepalese Prime Minister

Sher Bahadur Deuba later this month as part of efforts to
step up engagement with the Himalayan nation at a time
when China is seeking to increase its influence in the region,
including Bhutan. Deuba is expected to begin his five-day
visit to India on August 23, his first foreign trip after being
elected the prime minister for the fourth time two months
ago, according to people aware of the matter.
That Deuba chose India as a destination for his maiden trip
abroad reflects close nature of Indo-Nepal ties, they said,
amid Chinas relentless efforts to expand its sphere of po-
litical and economic influence in the landlocked Himalayan
state, including extension of Belt and Road Initiative (BRI).
A slew of India-assisted development and economic proj-
ects will figure high on the agenda during Deubas trip, said
a Nepalese observer, who did not wish to be identified. These
include finalisation of a joint detailed project report for the
Pancheshwar Multipurpose Project. The trip will provide
Deuba, who signed the Indo-Nepal Mahakali Treaty in 1996,
an opportunity to discuss with the Indian leadership imple-
mentation of the Pancheshwar project, the person said.
According to reports Deuba is also likely to take up the is-
sue of `500 and `1,000 currency notes withdrawn by India
in November 2016 as part of the demonetisation drive. As
per a directive by RBI, from January 2015 any Nepalese in-
dividual visiting India was allowed to have `25,000 in de-
nominations of 500 and 1,000. This will be the third visit by
a Nepalese PM to India in less than a year unprecedented
in the recent history of Indo-Nepal ties. Then PM Prachanda
visited India in September last year, followed by another trip
for the BRICS-BIMSTEC outreach meet in October.

3RD VISIT BY NEPALESE PM

This will be the third visit by
a Nepalese PM to India in less
than a year unprecedented
in the recent history of Indo-Nepal ties
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WWW.ECONOMICTIMES.COM
States & Region  5
IF PM HAS MANN KI BAAT... NOT RULING OUT BRAINWASHING SC cites example of game of

We Have Vaangi Baath

Blue Whale to claim anybody can be made to do anything

Kerala Love Jihad Case:

City gets 101 Indira
Canteen outlets;
Siddu plans to
launch it in all wards
Our Bureau
Beng alur u: Chief minister
Siddaramaiah said all wards in
Bengaluru will have Indira canteens by
October 2, after Congress vice-president
Rahul Gandhi inaugurated 101 such out-
lets in the city on Wednesday.
The canteens, modelled on the highly-
popular Amma canteens in Tamil Nadu,
will serve breakfast at `5, lunch and din-
ner at `10. We will copy pro-poor pro-
grammes from anywhere. We have im-
proved on the Amma canteens which
SC Orders NIA Probe
Samanwaya.Rautray
@timesgroup.com
New Delhi: Chief Justice of
India JS Khehar on Wednesday
directed the National
Investigation Agency (NIA) to
probe an alleged case of love ji-
had from Kerala, insisting that
people can be brainwashed to
do anything these days and cit-
ed the recent example of a youth
killing himself after playing the
Blue Whale game.
The game of dares prompts
players to do crazy things, in-
cluding killing oneself, and
send back proof. These are
played through hashtags on so-
cial websites. The government
has moved to crack down on
them after a youth committed
suicide recently in Kerala.
The court was referring to the
Congress vice-president Rahul Gandhi, chief minister Siddaramaiah, city mayor Padmavathi and case of a 25-year-old woman
who was allegedly brainwashed
Karnataka Congress in-charge Venugopal enjoy a meal at the newly launched Indira Canteen in
while still in college into con-
Bengaluru on Wednesday.PTI verting into Islam and later
married off to a Muslim man by
In One Month, Modi Destroyed her alleged guardian. Her fa-
ther had moved the Kerala HC
which restored custody of his
daughter to him, and annulled
Congs 10-yr Work in J&K: RaGa the marriage. The High Court
had observed that a woman can-
not be married off without the
involvement of her parents.
court RV Raveendran.
Her father has alleged that she
was converted into Islam by or-
ganisations which seek to re-
cruit them for extremist activi-
ties, including the ISIS.
Drawing a comparison to the
blue whale game, CJI Khehar,
sharing the bench with Justice
DY Chandrachud, observed:
Have you heard of the game
Blue Whale? You can lead peo-
ple to anything these days.
Senior advocate Kapil Sibal, ap-
pearing for the husband of the
girl protested against the obser-
vation. You are presuming
things, he told the bench. The
CJI clarified saying it was not
prejudging the issue, rather
he wanted an independent
probe into the case.
The court order came after
the NIA, through additional
solicitor general Maninder
Singh, claimed that prelimi-
nary findings, arrived at
on the basis of Kerala
police investigations,
showed that some ex-
tremist outfits were
converting and radi-
calising Hindu girls
to use them later as
recruits into or-
g anisations
such as the
ISIS.
This is not the only isolated
case, he said.
Referring to another instance,
he said: The entities appear to
be same. The pattern appears to
be a girl has a disagreement
with her parents. After the disa-
greement, she leaves home and
somebody gives them shelter.
The person who gives shelter is
the same and this requires
investigation.
In both cases the same organ-
isations were involved. These
organisations and people have
links with (the now banned)
SIMI, Singh told the court. The
girls were later on married off
to avoid family and court scru-
tiny, he said.
Sibal and senior advocate
Indira Jaising also insisted that
the court meet the girl and as-
certain her views before taking
a call.
This is an inter-religious
marriage. You must be
careful. Sibal, appear-
ing for the alleged hus-
band, accused the
girls father of keep-
ing her in custody.
The fathers put-
ting pressure on
her, Sibal
charged.

serve only breakfast and lunch. We are
serving three meals to ensure that no one
in Bengaluru goes to bed hungry,
Siddaramaiah said at the launch.
An app has been developed by the
Bruhat Bengaluru Mahanagara Palike
(BBMP) to identify the location of the
canteens in the city, which also lists the
Congress vice-president says PM has alienated every neighbour of India Her alleged husband has now
moved the top court seeking to
BEHAVE..LIKE A PM attacking the BJPs anti-farmer poli- meet her. The top court on
Sowmya.Aji@timesgroup.com cies and saying his party was the pro- Wednesday entrusted the task
Bengaluru: Congress vice-president
He allowed his party tector of the rights of the kisaan.
It is only after I held meetings in Uttar
of probing her case to the NIA.
The probe body will report to a
Rahul Gandhi on Wednesday attacked
Prime Minister Narendra Modi on his
people to beat Dalits and Pradesh for 30 days in a row and got two
lakh petitions from farmers that the
retired sitting judge of the top

menu and the operational timings of the

outlets. Siddaramaiah declared that
none of the outlets were located in parks
or playgrounds, as is being alleged by the
opposition BJP leaders. The BJP does
not understand what it is to be hungry.
We are the ones who understand that. If
Prime Minister Narendra Modi gives
you Mann ki Baat, we give you vaangi
baath (a local dish), Siddaramaiah said.
Gandhi lauded the mission and ate
lunch along with Siddaramaiah, KPCC
president G Parameshwara and others
at the canteen. The taste of the food is
better than any top restaurant in the
world. Even BJP leaders will stand in
line to eat here, he said, in a lighter vein.
FOR THE POOR
BJP does not understand
what it is to be hungry.
We understand that
SIDDARAMAIAH
chief minister
Kashmir policy, a day after the PM said
in his Independence Day speech that
neither gaali (abuse) nor goli (bul-
lets), only embraces will solve the is-
sue there.
Gandhi said former Prime Minister
Manmohan Singh, former Union
ministers P Chidambaram, Jairam
Ramesh and he had worked for five to
seven years without drama or tama-
sha, but silently to resolve the crisis
in Jammu and Kashmir. When I last
visited Kashmir in 2013, I came back
and complimented PM Singh for
achieving peace. In one month,
Modiji destroyed all that we worked
for over 10 years. The only people
who have benefited from this are
Pakistanis, he said.
Gandhi was addressing a mammoth
rally at Bengalurus National College
grounds, a BJP stronghold located in
the heart of Union minister Ananth
Kumars Bengaluru South constituen-
cy, that has seen speeches by party stal-
warts including Atal Bihari Vajpayee
and LK Advani in the past.
He stressed that the Congress was pro-
poor and pro-farmer, while seeking to
kill the minorities. He
didnt say a word. He is
running out of things to
say. It is time he started
behaving like the PM
RAHUL GANDHI
Cong vice-president
draw a contrast with the policies of the
NDA government.
The Congress vice-president strongly
criticised Modis foreign policy and said
the PM was swinging on a jhula with
the Chinese president when 1,000 sol-
diers from that country landed on
Indian soil. He has alienated every
neighbour that India has. For the first
time ever, Russia is supplying arms to
Pakistan, because of his policies. What
does he have to say to the fact that the
Chinese army is in our neighbour
Bhutans land, which India has prom-
ised to protect? he said.
Gandhi also set the tone for the partys
campaign in the election-bound state by
government there reluctantly waived
off loans. In Maharashtra also, the gov-
ernment responded only after the
Congress put pressure. In Karnataka
and Punjab, our governments waived
off loans for the farmers without pres-
sure from anyone. It is we who are the
protectors of the rights of the farmer,
Gandhi said.
Gandhi criticised the cuts in the
health budget in Uttar Pradesh and by
the Centre, which he said had resulted
in the death of more than 100 children
in Gorakhpur recently. The Prime
Minister has no concept of sach Bharat
(true India). The hospital did not have
money, could not buy oxygen for the
children. He (the PM) wants an India
where the rich go to private hospitals
and the poor die in government hospi-
tals. He does not mention this in his
Independence Day speech, he said.
The Prime Minister, Gandhi said, had
spent the last three years dividing the
country. He allowed his party people to
beat Dalits and kill the minorities. He
didnt say a word. He is running out of
things to say. It is time he started behav-
ing like the Prime Minister, he said.

Oops! Amma...Err...No....Indira
Bengaluru : A slip of tongue by Rahul Gandhi stop-
ping short of describing Indira canteens as Amma
canteens, named after late Jayalalithaa, caused a
flutter during the launch of the state governments
subsidised food outlets on Wednesday.
That is the vision of the Amma....the Indira
Canteen, he said as he corrected himself during the
launch of populist outlets.
Also, what caught everyones attention was his re-
peatedly mentioning every single city in
Bangalore.
The chief minister has mentioned to me that
Bangalore is just the beginning, that he is going to
expand this programme to other cities. And soon, over the next couple of months,
every single city in Bangalore, every single poor person in every single city in
Bangalore will feel that in the state of Karnataka under Siddaramaih jis government
I simply cannot go hungry, he said. PTI

Sidelined Dhinakaran
says No Link between
TN Govt and AIADMK
PTI
Cuddalore/Chennai:
Claiming the support of
AIADMK (Amma) rank and
file, sidelined leader TTV
Dhinakaran on Wednesday
said there was no link be-
tween the Palaniswami gov-
ernment and the party, and
those working to capture the
party through the back door
should reform.
Hitting back, the
Palaniswami camp said he
had no locus standi to issue
such statements.
In Cuddalore, forest minis-
ter Dindigul C Srinivasan
countered Dhinakarans
claim that the party was be-
hind him, saying the govern-
ment had the backing of all
134 MLAs. He asserted that
some legislators who had at-
tended Dhinakarans rally at
Madurai on August 14 had
now professed allegiance to
chief minister Palaniswami.
It was proved yesterday at
Independence Day celebra-
tions, Srinivasan said. His
remarks come a day after his
reported comments that the
government was short of ma-
jority by two MLAs.
Dhinakaran alleged that
some ministers and office bear-
ers were working to capture
the party through the back
door and asked them to re-
form themselves. He mocked at
the chief ministers camp for
trying to unite with the
Panneerselvam faction which
was not very keen on it.
Even if the two leaders
merged their factions, the
cadres were behind him and
Sasikala, proof of which was
the turnout at the Madurai
rally, the AIADMK deputy
general secretary climed.

Bank Manager Found Dead

Bengaluru: A 55-year-old manager with a coopera-
tive bank was found dead under mysterious cir-
cumstances inside his car near Shivanahalli flyover,
Kamakshipalya. The deceased MS Muniyappa, resi-
dent of RT Nagar is the manager with Sudha Coop-
erative society, Amrutahalli branch in north east
Bengaluru. Police recovered his body from his car
on Wednesday afternoon. Family, in its complaint,
said it was murder. OUR BUREAU
 https://telegram.me/TheHindu_Zone https://telegram.me/PDF4EXAMS

6  Disruption: Startups & Tech THE ECONOMIC TIMES | BENGALURU | THURSDAY | 17 AUGUST 2017

For comprehensive and

insightful stories about all
things startups and technology,
Amazon Finds a Cosy Spot WHAT I LEARNT FROM MY MENTOR
In the run-up to the grand finale of the
ET Startup Awards 2017, your favourite

with Large Appliance Sales

log on to www.ettech.com

a newspaper presents a special series on the

Tweet OF THE DAY
Online marketplace plans to ramp up installation services and geographical reach for the category
Payal.Ganguly@timesgroup.com
Bengaluru: With the festive season
round the corner, online marketplace
Amazon India is training its sights on
the push on high gross merchandise
value (GMV) category to clock-in a
large share of sales during the sales
during Diwali.
The platform had set up 12 dedi-
cated fulfilment
for TV and large appliances category
earlier this year while rival Flipkart
expanded its supply chain to include
10 FCs for the category. Amazon India
is also scheduled to increase the cove-
rage of free scheduled deliveries to 51
lessons that some of Indias most celebrated
entrepreneurs have learnt from their mentors
cus, said Satish Meena, senior fore-
cast analyst at Forrester Research in
a previous interview to ET.
My Mentor Gave
Me the Hunger to
During the recently-concluded Gre-
at Indian Sale event by Amazon held
from August 9 to August 12, the large

Learn from Mistakes

growing its large appliances sales.
The company, which claims a 400%
AUREN HOFFMAN year-on-year growth in the category
@AUREN driven by sale of air conditioners,
washing machines, TVs and refri-
In B2B, owning a mar- gerators, plans to ramp up the
installation services and
ket means your sales reach for the category.
and marketing costs We currently offer a
range of over 60 products
go down dramatically
across all top brands
which will be expanded
further before the festive
Tech Buzz season, apart from the
TeamIndus addition of other catego-
ries such as air purifiers.
Gets Time We have recently partne-
red with LG for air purifi-
for XPRIZE ers, said Suchit Subhas,
category leader for appli-
ances and automotive
(parts) at Amazon India.
The marketplace will also
increase its installation servi-
ces for large appliances to 40 cities
by August-end compared to the 13 citi-
es it currently services. This is part of
Bengaluru: TeamIndus,
centres cities from the current 45 cities cove- appliances category registered a
(FCs) red under this. According to market growth of 10x over business as usual,
reports, categories like furniture, to- with an overall spike of 15x for the TV
ys, personal appliances, and segment.
small and large domestic The platform has also introduced no
past two years. When things
appliances have grown cost EMI options on credit card, in li-
started going downhill at Zoma-
steadily till Febru- ne with easy financing options and
ary-March of 2017. exchange options. Close to 30% of to about 2 years ago, when we
For the upcoming our average large appliance orders had to layoff staff in the US and
festive season, fas- avail the exchange option wherein shut operations in some coun-
tries, I took some of Sanjeevs
hion along with they are given a waiver for the older
beauty and perso- models, said Subhas. advice to heart and reacted very
nal care as well as Easy financing options and cash-
DEEPINDER GOYAL negatively. I thought this was
home appliances backs driven by Amazon Pay will play CEO, Zomato all my fault.
But over time, I realised that
will be the other
categories in fo-
a strategic role in the growth of the
segment, added Subhas. there is no way I cannot make
Whenever I am down and need mistakes. Everybody has got to
some advice, the first person I learn and
go to is my wife Kanchan Joshi. one cant
Moving in 12 Dedicated fulfil-
A PhD from the Indian Institute be 100%
of Technology, Delhi, Kanchan right all
400% 40 Cities co ment centres is a mathematics professor at the time.
Amazon In- plans to in- Delhi University and since she Thats
dias year-on- crease instal- 30% of Amazons has never worked in a corporate part of
year growth in lation services large appliance or- set-up, I get a very unbiased life. I
ders avail exchange meaning of life. I discuss my think
the category to by Aug-end
deepest conflicts with her. what I now understand of what
I remember the advice from he said to me is that everything
Sanjeev Bikhchandani (foun- is your fault, but you should
der of Info Edge, the largest sha- quickly learn from these mis-

Survey Finds a Prime Reason Why

Indias only entry for reholder in Zomato) when he
the Googles Lunar gave us our seed round seven
XPRIZE, will now have years ago: Deepinder, every-
added time to prepare, thing that goes wrong at Zoma-
to is your fault because at some
takes and make sure you dont
repeat them. So you have to
constantly be in learning mode
and you can never get to a point
where you believe you actually

Users Prefer Buying on Amazon

as the competitions point in time, you could have know it all. The moment you be-
deadline has been ex- done something to not let that gin to feel so, that is where it
tended to March 31, happen. ends.
2018, reports Our Bu- This piece of advice came (As told to Supraja Sriniva-
back full circle espe- san)
reau. TeamIndus is According to Forrester, Prime service and strong logistics support kept firm ahead of Flipkart cially in the
among the five teams
ber of categories they purchase, said Satish
competing for the
XPRIZE, a global com-
GETTING AHEAD Mugdha.Variyar Meena, senior forecast analyst at Forrester.
@timesgroup.com The addition of Prime Video and Amazon
petition challenging pri- Prime for customers, who are spending more
vately funded teams to Bengaluru: Amazon India is taking the le- online, has helped Amazon capture customer
land a spacecraft on the ad over rival Flipkart when it comes to custo- preference, he said.
mer preference for online retail shopping, Overall Amazon is increasingly increa-
Moon. While we have mainly because of its Prime service and sing the engagement on the platform allo-
been working hard on strong logistics play. Amazon continued to be wing them to increase the wallet share from
an aggressive timeline, the preferred online destination for Indian existing online buyers and adding more buy-
the change of date al- shoppers, increasing its gap over Flipkart in ers due to superior customer experience, sa-
customer preference, according to a survey id Meena. Amazon India cla-
lows us to continue
by research firm Forrester Research. ims it has seen 25% year-on-
work with that fervour The survey, done among 2,000 Indian consu- year growth in purchase fre-
to make sure that the mers done between February and March this quency, driven by growth in
mission makes history, year, showed 80% shopped with Amazon, consumables and fast fashion Sanjeev Bikhchandani,
said Rahul Narayan, while nearly 65% of these shoppers shopped categories. Founder, Info Edge
Addition of
on Flipkart. The share of the platforms
founder, TeamIndus. According to Forrester, Amazon India had Prime Video
new customers in non-met-
TeamIndus has already and Amazon

Social Site Roposo

surpassed Flipkart in customer preference ros moved past 75% in 2017.
Prime has
won a $1-million mile- for the first time last year. Flipkart and Ja- New customer acquisition
helped
stone prize. bong saw a slight decline in customers opting grew by 60% Y-o-Y in 2016, the
PABLO PICASSO, Two women running on the beach

Amazon
for their platforms. While there are no abso- company said. Flipkart did

Reboots as a TV
capture
lute numbers, the survey done with 2,000 met- not respond to queries.
customer
Quick Byte ANIRBAN BORA ropolitan shoppers found that the number of Online customers are loo-
preference
customers who shopped at Flipkart dipped king beyond just discounts
from close to 70% last year to 65%, while those and are now also considering good experien-
CUSTOMER PREFERENCE

FLIPKART 70% 65%

ONLINE MEAN
SPENDING PER BUYER

2017 `24,092
who shopped on Jabong fell from over 30%
last year to 25% this year. Customers who
shopped on Amazon grew from 75% to 80%.
Shipping cost, shipping time, product revi-
ce and fast delivery. Product ratings have also
become important, said an ecommerce lo-
gistics player who did not wish to be identifi-
ed. Overall, customers online retail spen-
by the People
JABONG 30% 25% ew-ratings, low price guarantee and retailers ding picked up again in 2017 after seeing a dip Co relaunches as a digital television platform
return policy are the key factors for custo- last year, as per the report. Online spending and interests and target specific au-
2016 `24,092 Taslima.Khan
mers while picking an online retailer. Over a grew by 11% in the first half of 2017, with the dience accordingly. Brands who
AMAZON 75% 80% period of time, Amazon rated high in almost online spending per buyer growing to . 26,671 @timesgroup.com want to target these users can post
2015 `29,000 all the factors allowing customers to order in terms of mean spending in 2017, from their advertisements within these
Last year This Year
more products and also increasing the num- . 24,092 in 2016. New Delhi: Tiger Global-backed channels.
Roposo, which runs an eponymous Some of the channels, which are
fashion discovery and social net- part of the digital television plat-

Flipkart Sees the Big Picture in TV

working application, is relaun-
ching as a digital television plat-
form called TV by the People.
Apart from posting stories in an
attractive manner, the app will al-
Ecomm retailer looks to drive growth in sector by focusing on partnership with Vu Televisions low users to view their preferred
content from an array of themes,
form, include Rangoli, a channel
for home makers, Gabru for young
men, and entertainment guide
Glitz.
Over the past six months, the com-
pany had been focussing on home-
based sellers who could promote

86.4 b
Supraja.Srinivasan
$ @timesgroup.com
Projected spending on Mumbai: With SoftBanks $2.5-bil-
IT security products and lion mega investment in its kitty, Flip-
kart is charging ahead to invest and
services, says Gartner
grow some of its high margin catego-
ries as it locks horns with Seattle-ba-
sed Amazon to win the ecommerce
Google Buys battle in India. Right on top of that list
is its television category. Flipkart is
Indian-origin looking to grow its market share in
the television category by over three
Profs Startup times to 20% by March 201 8. For the
television category, we currently own
6-7% of the overall market including
online and offline (channels). In the
upcoming festive period, we want to
hit high double-digit growth, Sande-
ep Karwa, the head of large applian-
ces at Flipkart, told ET. By March
2018, we want to claim 20% of the ove-
rall market share, Karwa added.
A lions share of this growth will co-
Google has acquired me from the sales of Vu Televisions,
Senosis Health, a Seat-
an exclusive partner for the ecom-
merce firm, forming 35-40% of the lat-
tle-based health moni- ters revenue share in the television
toring startup founded
by University of Wash-
ington professor Shwe-
tak Patel (in pic). The
startup turns smart-
phones into medical
AI is Creating Building Blocks to Reshape Music and Art
devices and collects
Cade Metz
health stats. Using ac-
celerometer, micro- Mountain View: In the mid-1990s,
phone, flash and Douglas Eck worked as a database
camera, the Senosis programmer in Albuquerque while
moonlighting as a musician. After a
apps can monitor lung
day spent writing computer code
health and haemoglo- inside a lab run by the US Depart-
bin counts, among oth- ment of Energy, he would take the
er things. IANS stage at a local juke joint, playing
what he calls punk-influenced
bluegrass Johnny Rotten cross-
Jargon Buster ed with Johnny Cash. But what he
really wanted to do was combine his
Palm days and nights, and build machines
that could make their own songs.
A US Company that spe- My only goal in life was to mix AI
and music, Eck said.
cialised in the design
It was a nave ambition. Enrolling
and manufacture of per- as a graduate student at Indiana
sonal digital assistants University, in Bloomington, not far
from where he grew up, he pitched
category. This would mean that Vu
Televisions would form 8% of the en-
tire market share by March 2018, ta-
king the brand to the number 3 or 4
spot in the market, according to the
company.
Vu Televisions has benefitted im-
mensely from Flipkarts focus to dri-
ve growth in the large appliances ca-
tegory this year a move that saw the
brand clock 200% growth in the
first two months of FY18 with re-
venues touching . 80 crore during
Flipkarts Big 10 sale in
May. We have
grown 150% in
the first half of
2017 with Flip-
kart. We closed
FY17 with reve-
nues of about
. 480-500 crore
of which 70%
came from
Flipkart, said
Devita Saraf,
CEO of Vu
Technologies.
With Vu Televi-
the idea to Douglas Hofstadter, the
cognitive scientist who wrote the
Pulitzer Prize-winning book on
minds and machines, Gdel, Escher,
Bach: An Eternal Golden Braid.
Hofstadter turned him down, ada-
mant that even the latest artificial
intelligence techniques were much
too primitive. But over the next two
decades, working on the fringe of
academia, Eck kept chasing the idea,
and eventually, the AI caught up with
his ambition.
Last spring, a few years after taking
a research job at Google, Eck pitched
the same idea he pitched Hofstadter
all those years ago. The result is
Project Magenta, a team of Google
researchers who are teaching ma-
chines to create not only their own
music but also to make so many
other forms of art, including sketch-
es, videos and jokes. With its empire
sions contributing significantly to equity stake buy, said Karwa. follow the biggest influencers and themselves on the platform thro-
the success of television sales for However, analysts believe emula- icons as well as interact with sellers ugh a paid subscription-based pro-
Flipkart, the ecommerce firm is not
shying away from exploring an equi-
ting the success of mobile phone sa-
les for its TV category will be extre-
of a plethora of products. We see it
as an expansion and natural evolu-
gramme. The network has about
12,000 home-based sellers.
ty buy in the television maker, howe- mely tough for Flipkart. Consu- tion for us, said Mayank Bhanga-
ver, clarifying that nothing is on the mers preference even today, is to dia, CEO of Roposo, which has been
cards in the immediate future. We buy slightly larger and expensive diversifying its revenue streams.
will explore all the options to ensure television sets through an offline Our users have helped shape the Right Click
this (partnership continues). If that channel. The price difference bet- product. When we opened up the THE APP WILL ALLOW USERS TO
points out to a (requirement of a) ween offline stores and online platform for videos and photos, it 3RVWstories
long-term solution and for that if
we need to make certain invest-
channels like Flipkart is not signi-
ficant, believes Harminder Sahni,
was largely a fashion content net-
work. But people did not stop at that 9LHZ preferred content
ments which needs an equity
proposition to come in, then
founder of retail consultancy firm
Wazir Advisors.
and started posting on everything
that is important to them.
)ROORZ influencers and icons
,QWHUDFW with sellers
it is something
we will explore
Secondly, the time taken for delive-
ry and installation is a real pain point.
Roposo, which has a user base of 4
million, maintains that 70-75% con- 20 Total app Channels
at that point of It is a difficult category from a consu- tent on the platform is still related
time. Today, I mer behaviour point of view as also to fashion, lifestyle and beauty. The
4PLOOLRQ $21 PLOOLRQ
company counts the digital televi- User base Total funding
dont think we with post-purchase pain points thro-
are at a stage ugh an online channel. Hence sion platform as one of of Roposo received by co
where we are (growth to 20%) seems like a very am- its monetisation strategies.
looking at an bitious target, Sahni said. TV by the People is another big
stream of monetisation for us since
DEVITA SARAF the app will have about 20 channels
CEO, Vu Technologies catering to different types of con-
tent shared by users, said Bhanga-
We closed FY17 with . 500-cr reve- dia, who is now building a technolo-
gy platform for brands to filter
nues of which 70% came from Flipkart users based on their taste graphs
of smartphones, apps and internet come of age. Called deep neural photos, for instance, a neural net- game as much a way of under-
services, Google is in the business of networks, these complex mathemat- work can learn to recognise a bike. mining art as creating it is not
communication, and Eck sees Ma- ical systems allow machines to learn This is how Facebook identifies faces what he is after. There are so many
genta as a natural extension of this specific behaviour by analysing vast in online photos, how Android other paths to explore beyond mere
work. amounts of data. By looking for phones recognise commands spoken mimicry. The ultimate idea is not to
Its about creating common patterns in into phones, and how Microsoft replace artists but to give them tools
new ways for people to millions of Skype translates one language into that allow them to create in entirely
communicate, he said bicycle another. But these complex systems new ways.
during a recent in- can also create art. By analyzing a set In the 1990s, at that juke joint in New
terview inside the of songs, for instance, they can learn Mexico, Eck combined Johnny
small two-storey to build similar sounds. Rotten and Johnny Cash. Now, he is
building here that As Eck says, these building software that does much the
serves as head- systems are at least same thing. Using neural networks,
quarters for Google approaching the he and his team are crossbreeding
AI research. point still many, sounds from very different instru-
The project is
part of a growing
many years away
when a machine can
ments say, a bassoon and a clav-
ichord creating instruments
effort to generate instantly build a new capable of producing sounds no one
art through a set Beatles song or perhaps tril- has ever heard.
of AI tech- lions of new Beatles songs, each Another work using DeepDream,
niques that sounding a lot like the music the relies on neural networks to generate
have only Beatles themselves recorded, but imagescapes from existing photog-
recently also a little different. But that end raphy. NYTNS
ANIRBAN BORA
 https://telegram.me/TheHindu_Zone
WWW.ECONOMICTIMES.COM
PHILANTHROPIC ARM LOOKS TO PROVIDE SCALE TO STARTUPS
Tata Trusts Plans $30-m Fund
to Help Social Sector Startups
Company to reach out to organisations and individuals across the world to contribute to the fund
Surabhi.Agarwal@timesgroup.com
New Delhi: Tata Trusts, the phi-
lanthropic arm of the Tata Group, is
looking to raise funds to invest in so-
cial sector startups in the next few
months. A top executive of the agen-
cy told ET that after incubating and
investing in 15 startups at the seed le-
vel in the past one year of its existen-
ce, the company is now looking to rai-
se $30 million to invest in social sec-
tor startups.
We have been incubating and acce-
lerating startups through the Foun-
dation for Innovation and Social Ent-
repreneurship (FISE), working in
the social sector in areas such as he-
althcare, sanitation, water and agri-
culture for over a year, but now, the-
res a need to scale them up, said Ma-
noj Kumar, head innovations, Tata
Trusts. Tata Trusts being a phi-
lanthropic organisation can only
provide grants to various entities
and therefore, theres a need to raise
funds from other sources .
We are planning to reach out to phi-
lanthropic organisations and indivi-
duals across the world to contribute
Pinterest Adds
Zoom to Your
Gallery Pins
THINKSTOCK
NEW YORK: A long-awaited
feature is finally coming to Pinter-
est: Starting Wednesday, Pinterest
users will be able to zoom in on
pins. Up until now, Pinterest
images were static you could
click to enlarge them, but there
was no way to actually zoom in on
those images within the app. Now,
zooming will work on both images
and GIFs, and will work by pinch-
ing an image with your thumb and
index finger. Pinterest said the
new feature is among the top
requested by Pinterest users. It is
also revamping visual search both
in the app and on the web. BI
LETS GET THIS SHOW ON THE ROAD
$40 million
Amount Tata
Trusts invests
annually in R&D
30 Educational
institutions Tata
Trusts has part-
nered with
`55 crore
Allocation for FISE
over next 3 years
from Tata Trusts
to the fund, said Kumar. The organi-
sation has already got the approval
from the Securities & Exchange Bo-
ard of India (Sebi) for a Category-I Al-
ternative Investment Fund (AIF).
He said the organisation, through
its Social Alpha model, is trying to
provide an end-to-end solution by
providing deep domain research and
innovation facility through Tata
Infosys Finacle Banks on Unique
Solutions to Grow in Fintech Space
Jochelle.Mendonca
@timesgroup.com
Bengaluru: Infosys sees the chang-
es and challenges in the banking sec-
tor as an opportunity for its Finacle
core-banking platform and the unit
has tied-up with startups to provide
a combined offering to its custo-
mers, a senior executive told ET.
Banks globally are struggling with
slender margins and huge complian-
ce costs as regulations continue
to be tightened in the af-
termath of the financial
crisis.Banks are
struggling. Regula-
tions were considered
loose, now they are
tight and we believe
that globally, regula-
tors will look at how
to make them
right. All these
challenges are an
KEN DANBY, Towards the Hill
Trusts. The workable solutions are cation of about `. 55 crore over the
then provided seed capital through
FISE and are tested in the market for
affordability and accessibility thro-
ugh its huge network of NGOs. With
the fund, it wants to complete the cha-
in by providing scale to the startups.
So far, it has provided seed capital in
companies such as Harisaru Dala,
which works for creating sustainable
opportunity for us, Rajashekara V
Maiya, associate VP - Finacle Product
Strategy, told ET.
US banks are as yet an untapped
market for Indian core-banking sy-
stems and there have only
been sporadic deals in
the sector. He added
that Infosys was loo-
king to give its clients
access to innovative
technologies through
tie-ups with startups.
At Infosys, we belie-
ve that we do
When Blockchain started, banks created
their own internal centres-of-excellence
and proof-of-concepts...
RAJASHEKARA V MAIYA,
Associate VP - Finacle Product Strategy
https://telegram.me/PDF4EXAMS
Disruption: Startups & Tech  7
Infy Board to Consider
Buyback on August 19
Jochelle.Mendonca@timesgroup.com
Bengaluru: Infosys board will consider a pro-
posal to buy back shares at a meeting on August
IN THE FOOTSTEPS
TCS has completed its .16,000-cr
buyback it announced in Feb.
19, the company said in a late filing to the stock
livelihoods for waste pickers, Habba exchanges. The company had said it would pay Cross-town rival Wipro has
a social ecommerce platform desig- shareholders up to $2 billion through dividends
announced its second buyback
ned to maximise financial returns and share buybacks in FY18 in April, but inves-
for low-income artisans and weavers tors had been getting testy as no buyback had
across India, and Meghshala, which materialised in the following months. in as many years
has created a community of teachers The company had said it needed to get approv- Infosys added that it was closing its trading
along with Rang De and Sabziwala als from multiple exchanges and regulators be- window with immediate effect and that the win-
among others. fore going through with the buyback, which dow would reopen on August 22. The company is
The social sector problems are on- was causing the delay. yet to reveal the details of its buyback even as ri-
ly being solved by the NGOs. If you The board of directors will consider a propos- val Tata Consultancy Services completed the
want to build a scalable model, you al for buyback of equity shares of the company 16,000-crore buyback it announced in February.
have to build it around the entrepre- at its meeting to be held on August 19, 2017, Info- Cross-town rival Wipro has announced its sec-
neurial model, said Kumar, who is sys said in a statement. ond buyback in as many years.
also the CEO of Social Alpha.
Tata Trusts, which invests around
$40 million a year in R&D, has partne-
red with over 30 educational institu-
tions, which includes the likes of MIT
and IIT that have joint research faci-
lities with the Tata Group.
FISE, on the other hand, has an allo-
next three years from Tata Trusts,
out of which it has already spent `. 10
crore in the first year of its existence.
A part of it has gone into investing in
15 startups with an average ticket si-
ze of `. 50 lakh. We hope to be able to
invest in 15-20 companies in the next
two years, and raise a larger fund
next year, Kumar said.
not need to reinvent everything we do.
Earlier this year, we launched Finacle
Fintech Connect. We had about 6,000
entries, out of which we shortlisted
25. We took that down to about five and
we are offering these solutions to our
customers, Maiya said.
Fintech startups Active.AI and To-
neTag are some of the companies that
have tied up with Finacle. When
Blockchain started, banks created
their own internal centres-of-excel-
lence and proof-of-concepts because
there was no talent available anywhe-
re. Now, they are beginning to engage
with outside providers, Maiya said.
 https://telegram.me/TheHindu_Zone
8  Brands: Creating Desire
Short Takes
 Rajesh Rathi Named
Videocons Business Head
NEW DELHI: Consumer electronics firm Video-
con has appointed Rajesh Rathi as business
head. Rathi, who has been associated with
Videocon for over eight years, was earlier
national head and responsible for the groups
consumer durable sales across India, the
company said in a statement on Wednesday.
Videocon Industries chairman Venugopal N
Dhoot said: His expertise in planning, market
strategy, analyses and product management
will be invaluable to the company, going
forward. Rathi has also been heading the
companys other business verticals, including
strategic planning, product management,
business alliances, distribution management.
 Apollo Aims to Double
Two-wheeler Tyre Sales
NEW DELHI: Apollo Tyres is looking to nearly
double the sales volume of its two-wheeler
tyres to around two lakh units a month this
fiscal, according to company chief financial
officer Gaurav Kumar. The firm, which had
forayed into two-wheeler tyres in March last
year, will not attempt to gain with price under
cutting and expects profitability of the seg-
ment to continue to remain decent.
USL Fined `250 cr for Violating Price Pact
Co supplied products at Heavy Price to Pay
inflated prices, breaching USL is now controlled by Diageo
fair pricing agreement, Co sells brands like
Johnnie Walker, Royal
alleges CSD Challenge, McDowells
Its Q4 earnings statement included items
Ratna Bhushan & Sagar Malviya
of `264.5cr regarding a customers
claim in pricing inconsistency
New Delhi | Mumbai: United Spirits has
been slapped with fines of over `250 crore by Given army canteen
Canteen Stores Department (CSD) after the tax exemptions, a
countrys largest alcoholic beverages maker bottle of spirit is
violated the pricing agreement. USL, which nearly 80% cheaper
sells brands such as Johnnie Walker, Royal
Challenge and McDowells, had supplied
Liquor accounts for 26% of
products to CSD at inflated prices, brea- CSDs annual sales
ching the agreement of fair pricing which
also includes matching offers and promo-
tion given to other retailers. urce of income for state governments.
USL, in its earnings statement for the This makes a bottle of spirit nearly 80%
Jan-March quarter 2017, included an ex- cheaper at army canteen since they have tax
ceptional item of `264.5 crore and said it is exemptions. Companies have a written ag-
regarding a customers claim in respect of reement with CSD that their prices have to
inconsistency in the price charged to the
be the lowest among all trade channels. But
customer. It also said the disclosure was USL inflated its original pricing for CSD,
done voluntarily by USL to the customer and then reduced it on the pretext of disco-
and the issue has arisen out of the legacy unts which were also offered to other retail
commercial terms. channels, two officials directly aware of
The alcoholic beverages industry in India the development said. So technically, pro-
is heavily regulated, with excise and other ducts at CSD were priced higher than other
taxes on Indian made foreign liquor a key so- retail outlets before tax.
GST REMOVES CHECKPOST
Freight Carriers Asked to
Cut Cargo-handling Cost
Cos expect a 10-20% cost reduction in the long run; cant guage savings to share benefit yet
Anirban.Chowdhury
@timesgroup.com
Mumbai: Calls are getting louder for fre-
ight carriers to immediately lower cargo-
handling rates after the GST overnight re-
moved interstate check posts and octroi ga-
tes, speeding up goods movement across In-
dia. Any tangible reduction in costs may, ho-
wever, take longer to materialise.
Executives at two prominent fashion lines
and a pharma-equipment maker told ET
that they have requested their logistics ser-
vice providers (LSPs) to reduce tariffs.
Senior executives at four top logistics pro-
viders in India and a transportation compa-
ny confirmed that clients have requested
price cuts.
Yes, customers have been asking us for a
cut, said Anshuman Singh, chairman of
the Warburg Pincus-backed Stellar Value
Chain Solutions.
Union minister Nitin Gadkari recently
spoke about a 10%-20% reduction in lo-
gistics costs due to GST in the long run.
Customers have taken a note of that and
have immediately asked the LSPs to
pass on the benefits. The GST replaces
at least seven indirect tax heads inclu-
ding countervailing duty, special addi-
tional duty of customs, excise duty, ser-
vice tax, central sales tax, value-added
tax, octroi and state cesses. Interstate
movement of goods is now easier, with
the check posts demolished.
Stellar Value Chains Singh said that the-
re will likely be a 10%-20% cost reduction in
the long run, but it was too early to gauge
the extent of the savings and pass the bene-
fits on to consumers.
Others concurred. Road efficiencies sho-
uld come through finally, but businesses
will need to evaluate how much and when.
For now, businesses in India are grappling
with the first return filing, which is due Au-
gust 20 and this could see a big cash flow out
CSD or army canteen, the largest custo-
mer for most consumer goods companies,
accounts for nearly 6-7% of USL volume
sales. Liquor accounts for 26% of CSDs
annual sales, and is its singe largest contri-
butor. While the army canteen channel
and consumer goods or alcoholic beverage
companies have been involved in similar
disputes in the past, this is the single lar-
gest fine levied even on a single company.
CSD declined to comment while an email
query sent to USLs spokesperson didnt
respond to specific questions.
Sharing Benets
Govt claims
logistics costs
Expense cuts
due to abolition of
will drop as
much as 20%
octroi check posts
leads to smoother
post GST transport
Companies have asked Logistics companies
logistics parts to cut say too early to
charges accordingly gauge cost benefits
GST replaces at least seven
indirect tax heads including
countervailing duty, special
additional duty of customs,
excise duty, service tax, central
sales tax, value added tax,
octroi, state cesses
Online Platforms Fast Losing
Pricing Edge in Electronics
Big brands in tie-ups with ecomm marketplaces to control pricing and discounts
Writankar.Mukherjee
@timesgroup.com
Kolkata: Online platforms selling
high-value electronic gadgets of top
brands such as LG, Samsung, Sony or
Motorola could be losing their pricing
edge over brick-and-mortar chains,
with narrowing differences in consu-
mer benefits across the two sales chan-
nels helping move the fulcrum back to
equilibrium.
LG, Samsung, and Sony have entered
into business relationships with
e-commerce marketplaces to control
pricing and discounts for their
smartphones, televisions and home
appliances.
Similarly, online-focused brands such
as Xiaomi and Lenovo-Motorola have
informed their trade partners that they,
too, would soon implement a similar
pricing strategy, senior industry ex-
ecutives told ET.
A top executive with a leading South
Korean consumer electronics company
said that while marquee brands entered
into direct relationships with all online
marketplaces to ensure market opera-
ting price is maintained, some of them
like Flipkart would still want one or two
models they can price aggressively
during discount sales.
We may allow some discounting only
for the online exclusive models - just a
couple of them. Hence, consumers can
now expect price parity across most of
the models, including the popular
ones, he said.
Sony India head (sales) Satish Pad-
manabhan said the company has come
up with direct policies to ensure fair-
ness of prices across channels. Online
discounting is not a big challenge any
more. Over the past few months, the
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THE ECONOMIC TIMES | BENGALURU | THURSDAY | 17 AUGUST 2017
Desi Vendors
See Hope as
We are in the process of now coming to
a settlement with this customer wherein
we want to ensure that we agreeing to an
Shipments of
understanding that we settle all of his
past claims and moving to doing a future Phones Rise
business with the party in a manner that
profit ambition, USL CFO Sanjeev Chu-
riwala said in an investors call in May.
USL, now controlled by Diageo, also said
`46 crores had been netted off against net
sales value during last fiscal and about
`265 crore pertains to 2015-16, which have
now been clubbed as `311 crores.
While this amount has already been
provided in the balance-sheet, once the
payment is made, it will affect cash flow,
said Abneesh Roy, senior VP at Edelweiss
Securities.
After Diageo acquired controlling stake
in USL, the company have been faced with
a series of violations and issues, mostly
done during the regime of erstwhile ow-
Our Bureau
ner Vijay Mallya.
The Indian unit of Diageo filed multiple
complaints against Mallya after inquiri- New Delhi: Smartphone ship-
es uncovered improper transactions ments by Indian vendors grew
sequentially for the first time
worth `1,225.3 crore. USL said Mallya had
in four quarters, boosting the
diverted the funds to nearly half a dozen
companies in which he had a direct or in- prospects of domestic compa-
direct interest, mostly located in tax ha- nies as they prepare to take on
vens. Chinese rivals in the crucial se-
For Diageo, India accounts for almost cond half of the financial year.
40% of sales volume and 9% of net sales. Indian smartphone compani-
es registered an 18% sequential
India is the largest whisky market in the
growth in sales in the three
world, selling almost 200 million cases.
months ended June after decli-
nes in each of the three prece-
ding quarters, International
Data Corp (IDC) said.
The share of domestic smartp-
hone vendors was at 15% com-
pared with 54% for Chinese ri-
vals, according to IDCs Quar-
terly Mobile Phone Tracker re-
port. In all, 28 million
smartphones were shipped in
the quarter, a growth of 3.7% on
quarter and 1.6% on year.
Indian vendors have shown
an early sign of recovery and
now, when most of them are re-
ady with their 4G product port-
folio, a new set
of China-ba-
ON REDUCING TARIFFS In all, sed competi-
Executives at two prominent 28 million
smartphones
tors have ente-
red in the sub-
were shipped
fashion lines and a pharma- $150 segment,
in the quarter, said Upasana
equipment maker told ET that a growth of
3.7% on
Joshi, a senior
analyst at IDC
they have requested their LSPs quarter and
1.6% on year
India. Second
half of the ye-
to reduce tariffs ar will be cru-
cial either it will see a revi-
val of Indian vendors or emer-
for all as credit pools are yet to build up, sa-
gence of new dominance in the
id Amit Dawar, senior director, Value Added
sub-$150 segment from China-
Services, South Asia, at DHL Global For-
based vendors.
warding.
Samsung Electronics ship-
Most businesses have been struggling to
ments fell 4% on-year but the
get their invoicing out correctly, said Da-
South Korean company kept
war, whose company is part of Deut-
its top position, while Chinas
sche Post DHL, the worlds largest co-
Xiaomi, which saw a 25% on-
urier company.
quarter growth, came in at
An executive at a fashion brand sa-
No. 2. Xiaomis Redmi Note 4
id the turnaround time for consign-
became the most-shipped
ments sent by his company has redu-
smartphone in any quarter in
ced by 25%. But logistics companies ha-
the history of Indian smartp-
vent given in yet.
hones, with over 2 million
With the introduction of GST,
sold, IDC said in its report.
transportation has benefited from le-
Vivo remained in third spot
ad-time reduction and cost improve-
with a 26% sequential growth
ment. However, there is a reduction in
and a 13% market share, wide-
utilization of vehicles as wellWe estima-
ning from 4% a year earlier,
te that over the next 4 to 6
while OPPO was fourth even
months, true effects of GST
after its shipments declined
can be best evaluated befo-
13% on quarter. Lenovo (in-
re rates get normalized,
cluding Motorola) fell to fifth
said V Balaji, CEO, contract
position, hurt by a 25% on-qu-
logistics at Avvashya CCI
arter slump in shipments.
Logistics.
IDC said 34 million feature
Others believe that input costs stand in
phones were shipped in the qu-
the way of reducing freight rates.
arter, an 8.9% growth from the
There is no question of cutting our char-
previous quarter.
ges. There has been an increase in diesel pri-
The segment may get a boost
ces Also road infrastructure hasnt im-
with the launch of a 4G feature
proved to the extent that there will be a con-
phone by Reliance Jio Info-
siderable decline in costs, said Chander
comm, likely in the first week
Aggarwal, executive director at Transport
of September.
Corporation of India.
they need to bridge the price difference
ONLINE PRICING and launch models at same time on both
channels, a leading cellphone retailer
Over the past few said. Xiaomis recent two models
Redmi Note 4 and Mi Max2 were
months, the crazy online launched at the same time for both sales
channels.
discounts are declining and Emails sent to Xiaomi and Lenovo-
we dont expect similar pri- Motorola did not elicit any response
until the publication of this report.
cing to stay across channels Apart from the bigger opportunity
that lies in the offline channel physi-
due to direct business terms cal stores account for 92% of overall
television and appliance sales and 70%
SATISH PADMANABHAN of smartphone sales the brands are
Sony India Head (Sales) ensuring similar pricing so that preda-
tory online discounts do not kill the
crazy online discounts are declining offline business the way they did
and we dont expect similar pricing to earlier. As a result, ecommerce firms
stay across channels due to direct are now betting more on online ex-
business terms, he said. clusive brands such as TCL, BPL,
Industry executives said Xiaomi and Sanyo and OnePlus, and running
Lenovo-Motorola are going to bridge heavy promotion and discount on
the 400-1,000 price gap of their smartp- them to notch up sales.
hones sold via the online and offline However, online discounting during
modes. sales is continuing only in the case of
These brands have realized that if Apple iPhones since the company is not
they have to grow, they need to focus on ready to control prices, said one senior
brick-and-mortar retail. And for that, industry executive.
 ETMarkets
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MONEY
MATTERS
HSBC will Leap-
frog in India on
Back of Aadhaar
Q&A with HSBCs
Kevin Martin
Beating Volatility WWW.ETMARKETS.COM
BENGALURU, THURSDAY, 17 AUGUST 2017

Market Trends F&O DATA INDICATE OPTIMISM, but low market breadth is a cause for concern; EYEING INORGANIC GROWTH ROUTE
Bank Nifty 24,000-24,300 calls expiring Thursday witness huge short covering
Fairfax Seeks
Break of 9,944 Resistance
STOCK INDICES % CHANGE

a Bite of India
Nifty 50 9897.3 1.05
Sensex 31770.89 1.02

MSCI India 826.19 0.73

MSCI EM 2290.85 0.68
E-Comm Pie with
MSCI BRIC
MSCI World
SX 40
Nikkei
Hang Seng
574.2
7799.88
18993.64
19729.28
27409.07
0.78
0.17
0.94
0.12
0.86
Could Take Nifty Past 10k From there it has recouped 212 concern as many stocks are not
Infibeam Stake
Ram.Sahgal@timesgroup.com points to close at 9,897.3 on participating in the rally.
Strait Times 3278.95 0.48 Wednesday after the tensions ETIG data show advance-decline On the Rise Listed in April 2016, market cap rose
by 229% to `7,793 crore
Values in US $, Gross At 7 pm IST Mumbai: Having clawed back showed signs of easing. ratio which was 0.97 in July when 1700
nearly half of the 452-point fall Derivatives data for now seem to the Sensex rose by 5% has declined Infibeam 1438.1 In 2017: Acquired payment gateway
OIL ($) BOND from record highs, the Nifty is now favour upside rather than a correc- to 0.6 this month, which has seen Incorporation
service provider CC Avenue for
DUBAI CRUDE set to test the crucial resistance of tive move. For the August series, the Sensex fall by 3.28%. 1450 Share Price `20 billion. Invested in RemitGuru,
10-YR YIELD on BSE (`)
49.75 6.53
9,944. That level was the low of July the broad range of the market cur- Thursday will also be an impor- international online money remit-
0.3 0.01 28, from where the market rently is 9,480-10,050, F&O data in- tant day to gauge market direction tance service as an anchor investor
Absolute Change Figures in % marched to its life-high two ses- dicate. as it is the weekly Bank Nifty op- 1200
sions later. A conclusive break Sellers of Nifty calls across 9,700- tion expiry. If the Bank Nifty opens As of quarter ended June
GOLD RATE above 9,944 could drive the market 10,500 covered short positions on positive but closes below 24,500 802.1 30, 2017, it had 76,829
Prices per Troy Ounce ($) slightly above the 10,000 mark, say Wednesday and added to the posi- that could indicate the correction 950 registered merchants
US India derivatives and technical analysts. tive momentum which saw the of last week could re-commence. `4,502 cr transactions, 15 mn
OPEN 1276.90 1403.44
Unless we break past around Nifty almost reclaim 9,900. The spot Bank Nifty which was
plus SKUs and around `184 cr
9,950, chances are wed linger be- Additionally, selling of Nifty puts trading at sub-24,000 level intraday

ANIRBAN BORA
700
LAST* 1275.60 1397.68 AUG 16, 2016 AUG 16, 2017 of revenues with 20% Ebitda margins
low 10k and break below 9,700 from 10,000 through 9,600 strikes Wednesday, made a smart recovery
*At 10.30pm, After adjusting for import duty, In- thereafter, said Amit Gupta, de- was witnessed. to close 1.3% higher at 24,438.
dian spot gold lower by $ 5.48 to US Comex gold rivatives head of ICICI Securities. An extra positive indicator for Banks rose on news that lenders bank CLSA Singapore has been ad-
price on Wednesday. The premium on local gold A breach above 9,950 could drive the market was that more 9,800 who take over shares of defaulting vising Infibeam, sources said.
is due to tight supply following import curbs.
the Nifty to the next resistance of puts were sold on the ground of companies would not be subject to Prem Watsa-led Either the company will look to
10,050 odd and then on to 10,100. sellers not expecting the market to fund manager (PMS), Sharekhan- Sebi rules that trigger an open of- acquire a company or will help a
FOREX RATE (`-$ Exchange Rate)
After hitting a high of 10,137.85 on fall significantly below that level BNP Paribas, cites the low market fer. Bank Nifty options expiring Canadian firm may global player with its India entry. In
OPEN LAST* August 2, the market fell to a low of minus the premium received from breadth in recent weeks to support Thursday witnessed substantial both cases it needs capital, said a
64.28 64.15 9,685.55 last Friday as traders buyers. his claim of the market looking short covering of call options from invest up to `1500 cr person involved in the discussions.
booked profit amid rising tensions However, not all market players jittery near 10,000 levels. The 24,000-24,300 strikes, which also The proposed investment is ex-
Market on Twitter@ETMarkets between the US and North Korea. are so hopeful. Rohit Srivastava, advance-decline ratio causes some catapulted the Nifty higher. for a 12% stake pected to be at a marginal premium
at about `1,500 per share to the cur-
rent market price of `1,438. The

Earnings Watch INDEX UP 321.86 PTS as stability in global markets gives local investors confidence Sneha Shah & Arun Kumar market capitalisation of Infibeam
stands at `7,805.77 crore.

Sensex Logs its Biggest Gain Since July 10

Mumbai/New Delhi: Prem When contacted, Infibeam spokes-
Results Scheduled Today... Watsas Fairfax Financial Holdings person declined to comment. In a
Sales In `Crore PAT is in advance negotiations with response to SMS, Fairfax spokes-
Infibeam Incorporation Limited, person declined to comment on
Bloomberg June-17 YoY% Nifty jumped 103.15 points, or 1%, Indias only listed and profitable e- market speculations and rumours.
Consensus Est Estimate Change Our Bureau to close at 9,897.30. The equity mar- commerce company, to pick up a Fairfax has pipped other investors
718.81 -7.56 ket was closed on Tuesday for Wednesday on the Street minority 10-12% stake for around such as CDPQ, Fidelity and Canada
Dish TV (I) Mumbai: The stock market extend- Independence Day. `1,200-1,500 crore, said three people Pension Plan Investment Board
-14.19 -134.72 ed its recovery for the second The BSE Midcap and Smallcap SENSEX Gainers SENSEX Losers with direct knowledge of the devel- (CPPIB) who had also shown inter-
straight session on Wednesday after also continued to recover at a fast- Company CMP % Chg Company CMP % Chg opment. The move is aimed at creat- est in picking up a stake, said an-
Somany 404.33 -1.72
last weeks declines as domestic in- er pace than large-caps, gaining Tata Motors 389.05 3.57 NTPC 170.10 -1.05 ing the war chest to fund the expan- other person with knowledge of the
Ceramics 18.33 2.40 stitutions stepped up their purchas- 1.3% each. India VIX which sion plan of the e-retailer through development.
Cipla 590.20 3.54 Asian Paints 1,142.40 -1.01
es, helping absorb the selling by for- measures markets perception of the inorganic route. With its global reach and deep
eign investors. The benchmark volatility in the near term fell ITC 279.30 3.01 Power Grid 220.65 -0.81 Founded by former Amazon em- pockets, the evergreen fund
Aggregate Results So Far
indices rose 1% on Wednesday for the third consecutive session, HUL 1,186.95 3.00 Coal India 237.05 -0.67 ployee Vishal Mehta a decade ago, (Fairfax) was a preferred partner
Based on 2580 June-17 QoQ YoY their biggest single day gain since ending down 1% at 14.24. Sun Pharma 485.20 2.69 Lupin 962.20 -0.56 Infibeam is the only listed and prof- for the company, the person added.
Cos' Earnings (`Cr) %Chg %Chg July 10 as stability in global mar- Among top gainers, Tata Motors itable ecommerce company in the According to media reports,
kets gave local investors confidence gained 3.6% to `389.05, Cipla was Tata Motors* 231.65 2.25 Bharti Airtel 406.65 -0.47 country. The company offers a plat- Infibeam had shown interest in pur-
Net Sales 1734665 -4.97 7.85
to buy shares that were battered the up 3.5% to `590.20 and ITC ad- Kotak Bank 1,001.55 1.94 ONGC 161.00 -0.46 for m to vendors through its chasing troubled ecommerce com-
Op Prot 283248 -4.19 -3.41 previous week. vanced 3% to `279.30. SBI 282.90 1.74 L&T 1,141.65 -0.43 BuildaBazaar offering. pany Snapdeal.
The Sensex climbed 31,770.89, up *DVR Compiled By: ETIG Database
KPMG has helped with the valua-
Interest 244314 -0.69 1.13 321.86 points, or 1%, while the Continued on XX SMART INVESTING tion for the deal and investment Continued on XX SMART INVESTING
Net Prot 108024 9.16 -7.76
SOURCE: ETIG DATABASE
SHARES SLIDE 5.9% AFTER ANNOUNCEMENT
Sebi Asks
Exchanges to
Biocons Pain Could
Start Audit on Continue Post EU Drug
100 Shell Cos Application Withdrawal 35 violations of good manufacturing
Our Bureau Divya.Rajagopal@timesgroup.com practices at the Bengaluru-based drug
makers facilities last month and asked
Mumbai: Sebi has asked BSE and the Mumbai: The launch of Biocons the European agency not to approve
National Stock Exchange to initiate audit highly anticipated breast cancer drug Biocons applications unless the plant
on 100 out of 331 suspected shell compa- in Europe came under a cloud of un- was inspected again and cleared.
nies in which the regulator had restricted certainty after the company with- The request for withdrawal of the
trading recently. The exchanges are also drew its application to the regulator, dossiers and re-submission is part of
considering freezing promoters shares of pending re-inspection of its manufac- the EMA procedural requirement
these shell companies till the time the au- turing facility. linked to this re-inspection, Biocon
dit process is complete, said an exchange Following the announcement, Biocon said. We are on track to complete our
official familiar with the matter. shares tanked 5.9% to `328.80 at the corrective and preventive actions by
Most of the 331 suspected companies are close on the BSE on Wednesday. the end of this quarter and it is
either non-operational or already barred Though the biosimilar oppor- our intent to seek re-inspection
from trading on exchang- tunity might not be lost, we feel and re-submission thereafter.
es. Out of the total 331 that this withdrawal delays the Biocon and Mylan are the only
firms, 162 are listed on launch of these drugs in the US two companies that are close to
BSE. Some of these com- and Europe by at least six launching Trastuzumab, the first
panies such as J Kumar months, said Daljit Singh of bro- biosimilar drug to be introduced
Infraprojects, Prakash kera g e fir m India Nivesh. in the US and Europe.
Industries and Parsvnath Considering the company is seeking Analysts are waiting for September 3,
Developers had moved the Securities an approval for something totally new, when Biocon is expected to hear from
Appellate Tribunal (SAT) challenging the regulators are going to be extra cau- the US Food and Drug Administration
Sebi decision. The SAT had stayed the Sebi tious. ab o u t m a rke t i n g ap p rova l fo r
order. On August 7, Sebi had directed stock The European Medicines Agency Trastuzumab in the US.
exchanges to move 331 companies identi- (EMA) had accepted Biocons applica- Biosimilars are identical copies of
fied by the Ministry of Corporate Affairs tion to market proposed biosimilars of highly complex biologic drugs that are
(MCA) as suspected shell companies to the Trastuzumab, used to treat breast can- said to have the same efficacy as the
Graded Surveillance Measure (GSM) list cer, and Pegfilgrastim, used in cancer original. Biological products are manu-
that resulted in trading getting suspended ch e m ot h e r apy, for review last factured through biotechnology, de-
in many of them. September. rived from natural sources or produced
However, the French regulator found synthetically.

Oppenheimer Cuts Stake in Infy

One of the IT cos biggest investors trims holding by 0.3% in April-June quarter
Rajesh.Mascarenhas
@timesgroup.com
Mumbai: OppenheimerFunds,
the third-largest institutional
investor in Infosys, has
trimmed its stake in the compa-
ny. The US-based asset manag-
er, which backed Infosys chief
executive Vishal Sikka amidst
the managements differences
with the company promoters,
cut its holding by 46 lakh
shares, or 0.3%, in April-June
quarter. The fund held 2.46% as
on March 31.
Oppenheimer had increased
holdings in the company in
the previous three quarters
March 2017, December 2016
and September 2016 by pur-
chasing 1.03 crore shares.
An email sent to
OppenheimerFunds on the
reasons for selling the shares
went unanswered till the time
of going to press.
ITs on Bourses
235
(Indexed to 100)
190
145
100
55
Apr 1, 2010
OppenheimerFunds, in
February, wrote an open let-
ter in support of Vishal
Sikka, saying the founders
needed to accept that the
IT firm was publicly listed
and was no longer their
company.
As large, long-term inves-
tors in Infosys, we want to ex-
press our support for the
management team of Vishal
Sikka. There have been loud,
cancerous rumours of inter-
Infosys BSE IT Sensex
Aug 16, 2017
vention by non-executive
founders in the management
team, said Justin Leverenz,
portfolio manager at
Oppenheimer Developing
Markets Fund in the letter.
For the past five years,
Infosys has underperformed
both the BSE IT index and the
Sensex. While Infosys has
surged 69% in the past five
years, BSE IT and Sensex have
returned 85% and 80%, re-
spectively. Since January,
Infosys shares have declined
over 3% compared to 19% gain
in the Sensex and 1% rise in
the BSE IT index.
Though the fund managers
may support the management
of any company, but the fund
is duty bound to change its al-
location based on the perfor-
mance of the stock or change
in sectoral weightages and
various other factors includ-
ing redemption policies said
Raamdeo Agrawal, joint MD,
Motilal Oswal Financial
Services.
During the June quarter, for-
eign portfolio investors have
reduced their stake in the
company from 38.31% to
37.53%, while domestic mutu-
al funds increased their hold-
ing to 8.95% from 8.33%.
Foreign funds, which have re-
duced their stakes in the June
quarter include Abu Dhabi
Investment Authority and
Government of Singapore.
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10 Smart Investing THE ECONOMIC TIMES | BENGALURU | THURSDAY | 17 AUGUST 2017

WORST OVER? Miners numbers were weak during the past two quarters, but a pick-
What up in volumes and an end to wage cost provisions hint at a near-term turnaround
Day Trading Guide IIFL

its essential for Nifty to sustain above

Coal India Attractive Post

this level to sustain the recent momentum.
to Buy, Sell Appearance of large bullish candle with
decent lower shadow implies immediate
and Hold support of 9,770 and provided Nifty stay
higher above it, the near term outlook would
Sun TV Network be positive.
1050 Price on BSE (`)

800

550
458.9
747.8

Slide, on Revival Signals

Jwalit.Vyas@timesgroup.com
Goods and Services Tax (GST) on coal
also gives room for more price hikes.
Tech Picks
TECH MAHINDRA
Breakout is seen from base building pattern with
PRITESH MEHTA
Head -Technical Research

300
Aug 16, 2016
Centrum Broking has a buy on
Sun TV Network with a target
price of `840. The broker-
age expects the company to
post double digit advertising
growth on increasing yields
due to market share gains. It
said low movie amortisation
cost coupled with a turnaround
in IPL in FY19 would result
in higher margins and profit-
ability. The stock fell 0.33% to
`747.80 on Wednesday.
ICICI Securities has a hold
on JSW Energy with a target
price of `65. The brokerage
said while operational per-
formance was better than its
estimates, profitability was
dragged down by higher than
expected depreciation, finance
cost and tax rate. It said dele-
veraging and improving utili-
sation in South will help drive
earnings from FY18E onwards.
The stock rose 0.70% to `64.65
on Wednesday.
Angel Broking has a buy on
Maruti Suzuki India with a
BUY
TARGET
support around its three-digit gann number.
Aug 16, 2017 ET Intelligence Group: Coal Indias
Numbers Below Par On the cost side, the company has
been making incremental wage cost LAST CLOSE X ` 420 STOP LOSS X ` 407
` 450
share price has fallen by 22% since June Quarter Financials Production and Sales Trend (in million tonnes) provisions which will cease from July
200 Production Sales
the beginning of this year, following In YoY according to analysts. The share of e-
INTERGLOBE AVIATION
the companys weak financial perfor-
mance in the past two quarters, but
` cr chg 150 auctions is rising as the demand from
non-power sectors such as cement has
BUY
Net Sales 19,161 4% 100
It is attempting to stage a breakout from the
investors may find its current valua- remained strong on the back of rising TARGET
consolidation zone at the top of its rally.
3,522 -17%
tion attractive considering a possible EBIDTA 50 international coal prices. `1,380
turnaround in the business in the PAT 2,351 -23%
0
Margins in the e-auction coal at LAST CLOSE X `1,313 STOP LOSS X `1,290
forthcoming quarters. Margin/tn (`) 256 -20% `1,600 per tonne are 25% higher than
Jun 16 Sep 16 Dec 16 Mar 17 Jun 17
The companys June quarter reve- raw coal. Share of e-auction in sales
GRUH FINANCE
nue increased by 4% year-on-year to
`19,161 crore driven by 3% volume
increased to 20% in the June 2017
quarter compared with 18% in the
BUY
Correction brought the stock around the sup-
growth and higher e-auction prices of Even as the top line growth was mut- The worst, however, seems to be over year-ago quarter. port of its 50-DMA, bringing an end to decline. TARGET
coal. Growth, however, measured by ed, Coal Indias bottom line was hit by for the company, as volumes have Valuations, too, are comfortable. At
these parameters was below expecta- higher costs a 7% increase in cost per gradually started picking up, record- Wednesdays closing price of `237.1, LAST CLOSE X ` 473 STOP LOSS X ` 462
` 505
tions. Realisations for raw coal sup- tonne of coal, which was driven by a 6% ing 7% growth in July. the companys enterprise value (EV)
plied as a part of fuel supply agree- increase in wages, the biggest cost for In addition, lower volumes during was 5.9 times expected FY19 Ebitda
JUBILANT FOOD
ment fell by 3% year-on-year despite
5% price hike taken in the quarter,
the company. The operating profit be-
fore depreciation (Ebitda) dropped by
comparable months the previous year
would result in better growth momen-
compared with the average of 7.5
times since its listing in October 2010.
BUY
It staged a breakout from one-month consolida-
which shows there were no takers for 17.5%. Net profit declined by 23% to tum in the coming months. For in- In addition, given the dividend yield TARGET
higher grade coal due to underlying `2,351 crore the fifth consecutive stance, in the September 2016 quarter, tion at the top, suggesting resumption of uptrend.
of 6%, there would be limited down-
weakness in the power demand. quarter of weakness in the bottom line. volumes declined by 5%. Further, 5% side to the stock. ` 1470
LAST CLOSE X `1,393 STOP LOSS X `1,360
PIT BULL | ANIRBAN BORA
OVERHEATED To justify current valuations, TVS has to double its Fairfax Plans to
Ebitda margins by 2020, a target which looks difficult to meet Click into Indian
E-commerce
Does the Pricey TVS Stock XX From ET Markets Page 1

For the financial year ended March

target price of `8,495. The
brokerage said the company
continues to hold 50% share
in passenger vehicles and said
the launch of new models has
helped ride the premiumisa-
tion wave. It said due to the
3-4 months waiting period,
strong demand and GST-led
price decrease, the premium
pie is expected to grow to 20%
in FY19E. The stock rose 1.11%
to `7,701.60 on Wednesday.
Religare Broking has a buy
on LIC Housing Finance with
a target price of `748. The
brokerage said asset quality
risks are limited, where loan
against property is also tilted
in favour of salaried segment.
It said the company will be
key beneficiary of govern-
ments thrust on affordable
housing. The stock rose 0.43%
to `660.25 on Wednesday.
Smallcap Mantra
Atul Auto
CMP (`)
1-M Return (%)
52-week H/L
FY18E PE (x)
Have Earnings to Back it?
Ashutosh.Shyam@timesgroup.com
ET Intelligence Group: TVS Motor
has become the most expensive stock
in the auto space despite having an
unimpressive financial perfor-
mance. The stock is trading at 31
times the two-wheeler makers pro-
jected earnings in FY18, a premium
of 65% to the companys five-year
average price-earnings (P/E) and
30% to the industry average.
The dichotomy is that Eicher
Motors, the maker of the cult Royal
Enfield bikes, with its higher degree
of volume visibility and industry-
leading operating margins is trading
lower than TVS.
The financial performance of TVS,
particularly from the operating mar-
gin front, has been the same old story
for the last 20 quarters despite decent
volume growth. The operating mar-
gin (Ebitda) remained in the range of
6-8% as the company continued its
investment in brands. It is not very
different for the June quarter even if
one strikes off a one-time compensa-
tion to dealers for implementation of
GST. The adjusted operating profit
438.05 margin at 7.1% was flattish compared
4.38 with a year earlier.
512/389.85 Undeterred by the financial perfor-
18.0
Margins, however, didnt move up
2017, the companys consolidated net
profit increased by 396% to `43.5 crore
against `8.80 crore last year. Total reve-
nues stood at `441.3 crore, up 31%,
against `337 crore last year. Segment-
TVS Motor: PE Band meaningfully in the past two years wise, Infibeam registered service rev-
50 despite having favourable raw mate- enues of `160 crore for FY17, up 56%,
PE Avg 34.74 rial costs and decent volume growth. from `103 crore in the last fiscal.
40
Gross margin dropped between FY15 Product revenues rose by 20% to `291.5
30 and FY17, even as that of rivals Bajaj crore from `234 crore. The companys
and Hero MotoCorp improved in the Ebitda grew to `83 crore for the fiscal
10.29
20 range of 2-5 percentage points. compared with `27.4 crore last year.
Besides, a sizeable pickup in the vol- Infibeam is a business-to-business e-
rms
10 umes of the Apache bike and Jupiter commerce company aiming to regis- o FAANG
e nts in the tw rter
scooter was unable to lift margins. ter nearly four-fold jump in revenues Invest m d qua
0
to `2,000 crore by FY20 from the `470 in secon
Aug 16, 2012 Aug 16, 2017 The stock has run up on the expecta- declined
Source: Bloomberg, compiled by ETIG tion of double-digit margins by the crore in last financial year. In 2016, it
end of FY18 and that it will be able to became the first e-commerce compa- Bloomberg
expand market share. However, in the ny to get listed on the Indian bourses.
GREAT EXPECTATIONS current scenario, it appears that these BCCL, the publisher of this newspa- NAVNEET DAGA
The stock has may not be met simultaneously per, owns shares in Infibeam. F&O Strategy Head - Derivatives Research
most likely, it will achieve only the Driven by venture capital funds and
run up on ex- market share guidance this year. other financial investors, some of the
The competition in the scooter seg- e-commerce companies have been in Tata Global August Futures
pectations of ment is set to intensify as market consolidation mode. Alibaba and
double-digit profit leader HMSI has set a very aggressive SoftBank-backed Snapdeal had been BUY 192-195 range
volume growth target for FY18. looking at a merger since early this year
margins by end of FY18 The Street has been pricing in an op- but called off its talks with Flipkart re- CMP `194 TARGET `225 STOP LOSS `179
erating profit margin of 8.0-8.5% for cently. Fashion retailer Myntra was Note: Massive breakout on long term charts seen on the stock with
mance, the management has main- FY18 and FY19 with 15% and 10% vol- purchased by Flipkart in 2015. huge volumes and fresh long build-up. Spike in options volatility
tained its guidance of double-digit ume growth, respectively. To justify Consolidation has started happen- on OTM options indicates traders long bias. Momentum likely to
operating profit margin by the end of the current valuations, TVS needs to ing a little too early in the sector as it continue in near term.
FY18, saying that volume ramp-up double Ebitda margin by 2020, the was driven by investors. I believe there
would reduce fixed costs per vehicle. probability of which looks low. This is is room for multiple players in the OPTIONS
In addition, the company aims to im- why 61% analysts rate the stock Sell. Indian market unlike that in the West Index short strangle Bank Nifty weekly expiry, 24th August
prove two-wheeler market share by The 12-month consensus target price, where one player dominates, said
Bank Nifty 24th August Weekly expiry : Sell 25000 Call at `48 and
1.5 percentage points in FY18. At the compiled by Bloomberg, indicates Harminder Sahni, founder of Wazir
Sell 23800 Put at `50, Current inow of 98-105 points, target on
end of FY17, it had a share of 14.2%. 19% downside from current levels. Advisors that tracks the sector. As far
spread `20 with stop loss of `160 on spread.
as niche and specialised etailing is con-
cerned, there is room for plenty.

Tata Global Beverages Scrip Scales

Atul Auto is a manufacturer AMIT TRIVEDI
of three-wheeled commercial
Fx Technical Technical Strategist
vehicles in Gujarat. Although
Sensex Rises USD/ INR Status: Likely to retest `63.5

Himalayan Peaks with US Foray

FY17 was a challenging year
due to demonetisation and the
VAT issue, it is well poised for
revenue/PAT to grow at 22/36%
CAGR respectively over FY17-
19E, driven by revival in rural
demand due to the better mon-
soon, pan-India launch of petrol
and electric three wheelers in
FY18, expansion of the com-
panys geographical presence,
a pick-up in exports, owing to
the introduction of petrol ve-
CURRENT SPOT: `64.2
on Global Cues Call for the day: Go short on rallies around `64.2-64.3
Target `63.5 (SPOT) STOP LOSS `64.55 (SPOT)
quarter, said Sanjay Manyal, ana- XX From ET Markets Page 1
Anandi.C@timesgroup.com Tata Global Beverages lyst at Icicidirect.com. Losses from EUR/USD Status: towards $1.1900
205 Price on BSE (`) 193.3 associate businesses and joint ven- Signs of easing tensions between the US CURRENT SPOT: $1.1700
Mumbai: Shares of Tata Global tures have reduced to `1.2 crore in and North Korea was the key trigger
Beverages rose to a record high on the June quarter from `33.2 crore in that set the recovery in motion. Call for the day: Go long on decline around $1.1690
170 138.1
Wednesday as investors cheered the previous quarter. Market participants said corporate Target $1.1880 STOP LOSS $1.1625
the companys foray into the US Though the companys consoli- earnings for the June quarter has been
market with its Himalayan pre- dated sales declined by 1.8% year-on- largely disappointing. The disconnect
135 AMIT TRIVEDI
mium water brand, a first for an
Indian FMCG company.
year, analysts were encouraged that
the GST-led impact was not higher
between valuations and earnings
growth continues. However, with strong
Commodity Calls Technical Strategist

hicles and a lower base. Second Tata Global Beverages closed 8.17% 100 on domestic brands. The company inflows continuing, downside in the COMMODITY EXCHANGE STRATEGY
higher at `193.30 on Wednesday. The Aug 16, 2016 Aug 16, 2017 reported a 2.4% growth in Ebitda market looks limited, said Harsha
quarter numbers are expected
to be strong, owing to revival in stock hit a record high of `196.25 ear- margins and 14.1% growth in ad- Upadhyaya, CIO-equity at Kotak Sell in range `28,850-28,900
lier in the day. The last time the stock in the coming quarters. justed net profit year-on-year which Mutual Fund. Brokerage CLSA said in GOLD (Oct) MCX SL `29,150 Target `28,300
rural demand and new permits
rose to an all-time high was in The focus on profitable growth in were both ahead of estimates. a note on Friday that of the companies
for three wheelers issued in November 2012. the core businesses is quite encour- The stock currently trades at price- under its coverage that have reported Buy in range `414-412 SL `407
Maharashtra. We have a buy Analysts said, in addition to the US aging. The run-up in the stock price to-earnings ratio of 20 times its FY18 earnings so far, the bias has been more COPPER (Aug) MCX Target `426
rating on the stock with a target foray, the managements decision to lately is not just because of the US estimated earnings. Other FMCG towards downgrades than upgrades.
price of `528. exit loss making global businesses expansion but also because of good companies are trading at an average Foreign investors remained net sellers
Buy in range `192-191 SL `188
By HDFC Securities and refocus on core, profit-making results where losses from associate price-to-earnings ratio of 40 times for the fifth consecutive session on ZINC (Aug) MCX Target `198
businesses could boost profitability brands have greatly reduced in the their FY18 earnings. Wednesday, provisional data showed.

Market Intelligence Powered By: ETIG Database www.etintelligence.com

MARKET SNAPSHOT TURNOVER Turnover in ` Crore
Shares & Trades in Lakhs ADVANCE & DECLINE HIGHS & LOWS FII ACTIVITY (` Cr.) MF ACTIVITY (` Cr.) F&O Corner-NSE
SENSEX NIFTY BSE NSE BSE (Number of traded scrips) NSE BSE (Number of scrips) NSE EQUITY DEBT EQUITY DEBT Positive Trend Negative Trend
Open 31566.24 9825.85 Date Turn Shares Trades Turn Shares Trades A B Others Total Total A B Others Total Total Date Buy Sell Net Buy Sell Net Date Buy Sell Net Buy Sell Net
Spot Future % OI Spot Future % OI
High 31805.99 9903.95 16/8 4402 3128 13.25 26122 13571 95.48 Advances 248 741 648 1637 1081 52WK High 16 19 1 60 37 14/8 3289 4813 -1524 292 490 -197 10/8 944 983 -38 1627 2921 -1294 Company Price Price Diff Chg(%) Company Price Price Diff Chg(%)
Low 31399.35 9773.85 Declines 92 337 531 960 490 52WK Low 1 21 12 98 27 11/8 4134 5964 -1829 418 1107 -689 9/8 1831 1360 470 2901 6132 -3231 Suzlon Enrgy 17.50 17.65 0.86 -0.87 InterGlobe A 1313.20 1283.80 -2.24 -1.85
Close 31770.89 9897.30 14/8 3132 2436 12.80 23897 14118 90.13 Jain Irrig. 94.95 95.75 0.84 -0.50 GSFC 126.70 124.95 -1.38 -0.17
Unchanged 1 15 104 120 52 All High 12 13 36 24 10/8 4529 5512 -984 839 626 214 8/8 2083 1435 648 6101 5924 177 Infibeam Inc 1435.70 1445.75 0.70 -1.71
Change(Abs) 321.86 103.15 RBL Bank 523.90 516.90 -1.34 0.75
11/8 4366 3842 17.74 32925 17721 116.78 Total 341 1093 1283 2717 1623 All Low 1 6 7 35 15 9/8 3644 4073 -429 1608 274 1334 7/8 1722 1215 507 8100 8953 -853 Indiabulls R 230.00 231.55 0.67 -0.17
52-Wk High (Aug 2)32686.48 (Aug 2)10137.85 Reliance Com 23.35 23.50 0.64 1.10 Maruti Suzuk 7701.15 7626.55 -0.97 -1.24
52-Wk Low (Nov 21)25717.93 (Dec 26)7893.80 8/8 6587 4689 1898 1907 976 931 4/8 3162 1780 1383 12386 4544 7843 Marico 315.95 317.90 0.62 13.27 Sintex Inds. 33.95 33.70 -0.74 -6.76
10/8 4589 3156 17.52 31702 16308 109.23 HCC 35.80 36.00 0.56 0.93
3-Yr High (Aug 2,17)32686.48 (Aug 2,17)10137.85 Turnover Cash Market ET Indices Tot Aug 44590 48790 -4199 17079 8012 9067 Tot Aug 16918 12484 4434 54051 49051 5000
Indo Count I 117.30 117.95 0.55 9.50
BHEL
Pidilite Ind
129.95
817.90
129.20
813.60
-0.58
-0.53
-3.37
2.57
3-Yr Low (Feb 29,16)22494.61 (Feb 29,16)6825.80 9/8 3608 2775 14.47 25685 15588 92.90 BSE NSE (` Crore) PHARMA ET-100 Total 2017 835224 781054 54170 263428 139910 123518 Total 2017 318858 263115 55689 1070919 789349 231547 JSW Energy 64.60 64.95 0.54 14.21
Strides Shas 914.75 919.65 0.54 1.29 GAIL (I) 371.20 369.65 -0.42 4.04
Five Consecutive Days Up Five Consecutive Days Down 45000 17300 11400 Spurt in Volumes at BSE Spurt in Volumes at NSE
Company Days Prev 5 Days 5 Days Company Days Prev 5 Days 5 Days Days 2 Weeks % Days Days 2 Weeks % Days
Active Calls Active Puts
(BSE) Close Close Ago Rtn.(%) (BSE) Close Close Ago Rtn.(%) Company Volume Avg. Vol. Chg Close Company Volume Avg. Vol. Chg Close Traded Open Chg in Traded Open Chg in
16475 11250 Company Contract Qty Interest OI (%) Company Contract Qty Interest OI (%)
WPIL 494.05 486.80 451.35 9.46 Jay Ushin 310.35 325.00 360.70 13.96 30000 Beekay Nirya 31000 31 99900.00 13.16 MOSt M100 2998205 12577 23738.58 18.70
National Per 1698.05 1594.75 1396.40 21.60 Nahar Indl.E 91.45 93.75 102.05 10.39 Info Edge 627596 1324 47317.27 953.70 Perfect Infr 114000 6000 1800.00 23.05 Suzlon Enrgy 17.50-Aug 38160000 33090000 0.18 BANKNIFTY 24000.00-Aug 17835480 857720 144.98
Elantas Beck 1901.20 1899.80 1875.20 1.39 Pasupati Acr 23.70 24.60 27.40 13.50 Max Fin.Serv 9697760 68086 14143.31 605.10 Astrazen.Ph. 122463 7173 1607.20 908.80 Suzlon Enrgy 20.00-Aug 24360000 58620000 -0.76 NIFTY 9800.00-Aug 16666950 5266650 13.97
15650 11100 BANKNIFTY24500.00-Aug 23573360 741000 0.59 NIFTY 9700.00-Aug 13878825 4462800 4.78
Mastek 278.20 276.95 243.95 14.04 Victoria Mil 3600.05 3739.50 3920.25 8.17 Kirlos. Oil 360878 3706 9637.09 394.65 Bhandari Hos 2954588 175344 1585.03 2.15 BANKNIFTY 23900.00-Aug 13827160 370320 73.01
BANKNIFTY24400.00-Aug 20883080 469440 21.55
Ceat 1711.35 1700.05 1688.20 1.37 GMM Pfaudler 524.79 525.40 567.10 7.46 15000 Birdhi Chand 99000 1246 7844.79 12.21 Kotak Bank D 225792 16111 1301.45 250.14 BANKNIFTY24300.00-Aug 19213960 335320 -36.96 BANKNIFTY 23800.00-Aug 11780960 414360 61.33
Incap 58.65 55.90 50.65 15.79 Vadilal Ind. 844.65 852.25 895.45 5.67 14825 10950 DB Corp. 77270 1509 5021.73 363.80 Rane Brake L 109658 7894 1289.11 1323.15 NIFTY 9900.00-Aug 17395050 3286800 -10.50 BANKNIFTY 24100.00-Aug 11632320 494000 141.92
KSE 1355.40 1345.95 1325.05 2.29 SML ISUZU 947.00 950.30 986.60 4.01 Astrazen.Ph. 48160 966 4887.78 907.10 Murd.Ceram 865987 64201 1248.87 45.45 Tata Gl.Bevr 200.00-Aug 16303500 1575000 260.82 BANKNIFTY 24200.00-Aug 9667800 682920 322.91
Eastern Silk 6.93 7.29 8.49 18.37 BANKNIFTY24200.00-Aug 15836480 193360 -55.91 NIFTY 9600.00-Aug 9567825 4151550 12.79
Sibar Auto 15.21 14.49 12.53 21.39 Bhandari Hos 4108248 121267 3287.78 2.21 Shreyas Sh&L 250434 23114 983.49 365.75 SBI 270.00-Aug 7530000 2874000 33.24
NIFTY 10000.00-Aug 15588525 5562225 -0.72
RR Financial 12.84 12.23 10.60 21.13 Blue Blend(I 32.85 36.10 41.55 20.94 Phoenix Mill 57791 2180 2550.70 523.85 Cybertech Sy 255466 24821 929.23 57.00 SBI 300.00-Aug 15555000 7509000 -7.26 NIFTY 9500.00-Aug 7509675 5566350 -0.19
0 14000 10800
Simran Farms 83.90 82.30 77.59 8.13 Vardhman Tex 1157.30 1162.90 1194.55 3.12 Guj.Pipavav 1025686 42945 2288.36 140.55 Aarvee Denim 825966 82089 906.19 29.40
Victory Papr 17.54 16.71 14.45 21.38 Aarti Drugs 512.65 513.65 545.40 6.00 Aug 9 Aug 16 JULY 17 Aug 16 Fairdeal Fil 69248 3198 2065.20 30.45 Godfrey Phil 1201615 120638 896.05 1041.80 Future OI Gainers Future OI Losers
Pankaj Poly. 12.02 11.50 10.01 20.08 Aarvee Denim 29.45 32.70 55.65 47.08 VA Tech Waba 315161 14576 2062.17 632.20 Pennar Engin 136717 14306 855.66 92.60
Prerna Infra 34.00 33.54 31.00 9.68 Kilitch Drug 51.25 51.70 59.00 13.14 Open Chg in Future Chg in Open Chg in Future Chg in
MSR (I) 31.85 30.35 26.30 21.10 Coral Lab. 991.20 1000.00 1058.84 6.39 Positive Breakouts Negative Breakouts Best Returns on BSE Worst Returns on BSE Company Interest OI (%) Price Price (%) Company Interest OI (%) Price Price (%)
Goldstone In 118.25 112.65 92.95 27.22 Vishnu Chem. 239.75 247.60 274.50 12.66 Max Fin.Serv 4819000 37.69 608.40 1.26 Voltas 3220000 13.86 544.65 -1.71
Company Days 20 Days % 50 Days Company Days 20 Days % 50 Days Company Days Prices % Average Company Days Prices % Average Havells (I) 3450000 15.46 465.05 -2.81 Indrapr.Gas 936650 8.59 1279.45 -0.70
(BSE) Close Mvg Avg Chg Mvg Avg (BSE) Close Mvg Avg Chg Mvg Avg Close Chg Volume Close Chg Volume JSW Energy 73865000 14.21 64.95 0.62 Cummins (I) 583200 7.95 922.15 3.99
52 WEEK AT NSE * ALL TIME AT NSE Marico 4859400 13.27 317.90 -0.66 HDIL 31328000 6.98 62.65 -1.42
CSL Finance 593.50 402.03 47.63 351.41 Alora Trdg. 12.95 23.28 44.37 26.99 Fortnight Fortnight Hero Motocor 968200 13.16 4020.85 1.62 Sintex Inds. 15632250 6.76 33.70 6.48
HIGH Jindal St(H) 178.40 Time Technop 183.35 OCL Iron & S 3.60 Goldstone In 118.25 80.53 46.84 68.77 Sanghvi Move 143.15 224.39 36.20 235.48 Goldstone In 118.25 71.65 65.0 79113 Aarvee Denim 29.45 62.15 -52.6 46342 Ashok Leylan 49294000 11.96 105.20 -0.09 Mahanagr Gas 706800 6.36 1040.05 0.61
Agri-Tech 73.05 JSW Steel 238.85 Titan Co. 638.30 Ortel Comm. 27.15 Layla Text 11.04 7.76 42.27 8.79 Kalpa Comm. 50.55 78.85 35.89 114.58 Modern Steel 13.45 8.46 59.0 8520 Dwekam Inds. 1.91 3.13 -39.0 400984 Biocon 10540800 10.70 329.30 -5.91 Page Inds. 29450 5.61 17124.35 2.45
Bata (I) 675.30 Jubilant FdW 1444.75 Tube Invest. 830.00 Pennar Engin 89.90 Stovac Ind. 3415.05 2583.05 32.21 2558.08 Vani Commer. 26.20 37.75 30.60 43.95 Indo Count I 9887500 9.50 117.95 4.66 United Brew. 1085700 4.96 810.90 1.65
CSL Finance 593.50 377.00 57.4 13067 Sanghvi Move 143.15 233.00 -38.6 31640 ACC 1214400 8.97 1811.30 1.54 National Alu 10992000 4.85 69.40 4.83
Britannia 4311.95 Kirloskar In 1689.00 LOW Pincon Spiri 50.35 Veer Energy 34.00 26.10 30.27 24.06 Religare Ent 69.75 100.31 30.47 138.07 Pankaj Poly. 12.02 7.86 52.9 38537 Ortel Comm. 27.30 42.70 -36.1 107218 Power Grid 11024000 8.21 220.70 -0.99 Tata Elxsi 1139600 4.75 1691.45 2.47
Emkay Global 190.25 Lakshmi Mach 6430.00 Aarvee Denim 29.40 PC Jeweller 345.05 266.19 29.63 259.22 Dwekam Inds. 1.91 2.73 30.04 2.63
Piramal Phyt 43.80 Layla Text 11.04 7.43 48.6 216391 Religare Ent 69.75 104.00 -32.9 174312
Endurance Tc 1026.90 Meghmani Org 62.30 Agro Phos In 17.65 Incap 58.65 46.35 26.54 42.68 Responsive I 47.70 67.15 28.97 76.94
Future Retal 496.80 Metkore Allo 6.15 Banswara Syn 132.50 Prolife Indu 31.10
Dhampure Sp. 20.95 16.81 24.63 16.18 Blue Blend(I 32.85 44.90 26.84 48.38
1 Month 1 Month Market-Wide Position Limit Top Sectoral OI Gainers
Gabriel (I) 180.00 Nalwa Sons I 1150.00 Blue Blend(I 31.65 Religare Ent 68.50 Modern Steel 13.45 7.25 85.5 5437 Kalpa Comm. 50.55 135.05 -62.6 30310
Emami Paper 167.65 135.11 24.08 122.38 A.Birla Mone 88.85 118.51 25.03 90.52 MWPL OI MWP Chg in Open Chg in Trd Chg in
Gillette (I) 5440.45 PC Jeweller 349.00 Bohra Inds. 40.25 Responsive I 46.70 RMG Alloy 7.00 3.79 84.7 25320 Ortel Comm. 27.30 67.55 -59.6 58941
Perm Magnets 48.80 39.59 23.26 37.35 JBF Inds. 166.20 220.70 24.69 258.48 Company (Lakh) (Lakh) (%) OI (%) Sector Interest OI (%) Qty TQ (%)
GOCL Corp 534.80 Pennar Inds. 58.30 Easun Reyrol 20.10 RPG Life Sci 296.70 V2 Retail 328.95 267.96 22.76 253.76 CSL Finance 593.50 333.65 77.9 7281 Alora Trdg. 12.95 31.65 -59.1 108551
Radhe Devlop 20.50 26.93 23.88 30.78 JSW Energy 820.31 859.01 104.72 16.03 Packaging 4819000 37.69 3873000 79.31
Goldstone In 118.35 Petronet LNG 230.70 E-Land App. 17.80 RMG Alloy 7.00 5.71 22.59 4.79 CIL Securits 31.15 40.87 23.78 35.98 Neo Corp Int 4.98 2.95 68.8 123191 Aarvee Denim 29.45 65.00 -54.7 23981
Sanghvi Move 140.40 HDIL 551.31 547.12 99.24 -10.47 Diamonds 4809000 8.02 9198000 -11.44
Graphite Ind 246.90 Quintegra So 2.40 Energy Dev. 19.50 Sarda Energy 368.35 305.19 20.70 273.94 Nitin Fire P 4.74 6.21 23.67 8.18 GVK Power 12.76 7.56 68.8 5003788 Shilpi Cable 27.05 52.40 -48.4 311714 Jaiprak.Asso 2953.79 2751.28 93.14 -6.86 Mining & Minerals 92011600 5.15 61036100 18.59
Sarla Perfor 43.70
HDFCNiftyETF 1010.97 Radico Khait 164.30 Ess Dee Alum 32.15 Vegetable Pr 5.01 4.16 20.43 3.64 Panafic Indl 2.52 3.28 23.17 4.28 3 Months 3 Months GMR Infrast. 4628.79 3978.90 85.96 -0.93 Automobiles 132734125 4.84 76692925 77.08
Servalak.Pap 1.30 DLF 893.84 749.05 83.80 10.11 Paints & Varnishes 3882400 4.77 2196800 5.53
HDFCSenETF 3243.50 Sarda Energy 376.80 Jain Studios 4.00 Autoline Ind 81.95 68.19 20.18 60.39 Cigniti Tech 200.50 260.85 23.14 274.40 Magnum Ventr 11.98 3.85 211.2 125206 Meenakshi En 54.95 311.50 -82.4 61319
Heritage Foo 1354.05 Tasty Bite 6100.00 Magadh Sugar 210.70 Signet Inds. 7.35 Dwarikesh Su 66.20 55.54 19.19 47.53 Eastern Silk 6.93 2.40 188.8 147377 Videocon Ind 20.05 99.85 -79.9 550516 Infibeam Inc 59.35 48.90 82.39 0.73 Textiles 21571150 3.77 11822000 12.26
Piramal Phyt 46.85 60.78 22.92 67.33 Indiabulls R 533.18 436.10 81.79 -0.86 Power Generation 317857500 3.47 110098000 12.67
Hero Motocor 4044.00 Tata Gl.Bevr 196.75 Mandhana Ind 6.70 Themis Medic 446.70 Goldstn.Tech 11.01 9.24 19.16 8.77 Cosmo Ferr. 23.00 29.69 22.53 28.44 ABC Bearings 408.15 173.30 135.5 21156 Nitin Fire P 4.74 22.15 -78.6 377238 Fortis Healt 591.51 482.54 81.58 -7.07 Telecom Equips. 11526000 3.09 2148800 48.71
Indrapr.Gas 1318.85 Tata Steel 632.65 Megasoft 13.05 Vimal Oil Fd 15.70 Prima Agro 14.46 12.16 18.91 11.71 Phytochem I. 44.75 57.48 22.15 58.98 Raisaheb Rck 150.75 67.05 124.8 49251 Ortel Comm. 27.30 106.20 -74.3 21441 Suzlon Enrgy 8260.51 6709.20 81.22 -0.11 Transport 5983875 2.41 9185325 123.82
InterGlobe A 1346.70 Thangamayil 377.00 Nitin Fire P 4.55 Zicom Electn 20.65 Thangamayil 366.95 309.04 18.74 270.27 Guj.Foils 11.30 14.48 21.96 14.62 Avanti Feeds 1941.05 898.30 116.1 28861 Lanco Infrat 0.87 3.36 -74.1 9141577 Rel Capital 236.76 191.75 80.99 -2.26 Consultancy 4752000 2.35 2335200 -34.76
Disclaimer: The content hereof does not constitute any form of advice or recommendation by the newspaper. BCCL or its affiliates will not be liable for any direct or indirect losses caused because of readers reliance on the same in making any specific or other decisions. Readers are recommended to make appropriate enquiries and seek appropriate advice before making any decisions.
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WWW.ECONOMICTIMES.COM
Money Matters  11
AT `1.19 LAKH CRORE
Q&A KEVIN MARTIN ET in the Classroom
Investments Head-Retail Banking & Wealth Management, HSBC Asia-Pacific

in CPs by You Can

Banks See
35% YoY HSBC will Leapfrog in Borrow
Against
Rise in May
Gayathri.Nayak@timesgroup.com
India on Back of Aadhaar MF Units
When there is urgent

A
need of money for
Mumbai: Bank loans to corpo- short tenures such as

rates may have slowed down,
but that doesnt signal a fall in
demand for working capital, as
companies are increasingly
raising funds through commer-
cial papers.
Banks investments in com-
mercial papers (CPs) stood at
`1.19 lakh crore as of May 2017,
up 35% from a year earlier, ac-
cording to the latest Reserve
Bank of India data.This at a
time when pure loans have bare-
ly managed to grow 5% and
loans to corporate are decelerat-
ing. Investments in CPs is
growing faster than pure bank
loans is largely a reflection of
borrowers preference, said
Siddhartha Sanyal, chief India
economist at Barclays. It is
cheaper than loans in the MCLR
(marginal cost of funds based
lending rate) system of loan
pricing, he said.
However, CPs are not compara-
ble with bank loans, and capital
investment remains a drag on
overall demand from banks.
Commercial papers are rela-
tively shorter term instru-
ments, typically issued to meet
working capital instruments
and banks are more comfortable
in parking their funds in these
instruments, Sanyal said.
For the countrys largest lend-
er, State Bank of India, invest-
ments in CPs rose even in abso-
lute terms than loans in June.
The top lenders loans rose
1.16% or `18,435 crore year on
year in June 2017, while its in-
vestments in CPs rose 87% or
`27,485 crore in the same period.
Outstanding issues of CPs
amounted to `3.9 lakh crore as
of end May with mutual funds
and NBFCs as other major in-
vestors. Even as capacity expan-
sion is slowing credit demand
from banks, many large corpo-
rate are deleveraging and pre-
ferring to use their own resourc-
es to fund business.
SK Ghosh, group chief econom-
ic advisor at SBI, said some top
corporates reported contraction
in loans in FY17. About 1,000 non-
financial entities reported an ag-
gregate decline of `1,00,000 crore.
The debt contraction could ei-
ther be through repayment, eq-
uity conversion or restructuring
of debt, Ghosh said.
Banks share in the flow of
funds to the commercial sector,
which includes manufacturing
and service sectors, declined to
38% in in the year ended March
from around 50% in FY16, ac-
cording to the Reserve Bank of
Indias latest Financial Stability
Report. However, the aggre-
gate flow of resources to the
commercial sector was not af-
fected, owing to a sharp increase
in private placements of debt by
non-financial entities and net is-
suance of commercial papers
(CPs), the report said.
s head of retail bank-
ing and wealth man-
agement division for
HSBC in the Asia-Pa-
cific region, Kevin
Martin is in charge of
the largest retail division for Eu-
ropes largest lender. In an inter-
view to Joel Rebello, he talks
about how HSBC plans to deal with
technological changes in retail
banking and the banks plans for
India after a cut in branches an-
nounced last year. Edited excerpts:
Technology is changing a lot of
things in retail banking. How is
HSBC dealing with the change?
Banking needs have changed glob-
ally, and also in India post demone-
tisation and other regulatory
changes. Our role, therefore, is to
change with the community. Inter-
net had increased access to ac-
counts but it also means that people
visit branches less often. For HSBC,
branch penetration outside of Hong
Kong is low, which is a disadvan-
tage historically as a result of which
our focus has been on the premier
or advanced segment. But now, as
needs change, we can deliver ser-
vices that we could not deliver be-
fore, so we are now building an ar-
chitecture to enable us move more
nimbly in terms of that technical ca-
pability. We are working on a raft of
application programming interfaces
(APIs) to enable us to be repeatable
across many markets. It is not nec-
essary that what works in New York
will work in Sydney, so this new ar-
chitecture gives us the ability to
build a common platform from
which we can build a scale from.
Now, we will roll them out globally,
including in India.
Can you elaborate on what these
changes will be?
We know that customers are com-
fortable with WhatsApp, WeChat,
Facebook, Instagram or Snapchat.
We have to build the capabilities to
connect these interfaces. In China,
access to HSBC is through WeChat
rather than through standalone
apps, though you can do through
standalone too. But largely, custom-
ers want an app with some rewards
and minimum balance to help them
pay. They dont want to go through
two factor authentication. We have
spent over $1.5 billion in the last
two years in six markets globally to
build a new architecture. The first
market outside those six United
States, Canada, Mexico, France,
United Kingdom and Hong Kong
where we are building a new archi-
TECH IN BANKING
We are work-
ing on a raft of
APIs to enable
us to be repeatable
across many markets...
Now, we will roll them
out globally, including
in India
tecture, is India. In India, the regula-
tory efforts, demonetisation and
creation of a central repository for
biometrics helps to do customer
identification much more effective-
ly. You can rely on external data
sources with much more confi-
dence. We can take our platform to
the platform laid across the coun-
try, which will help us leapfrog and
thats why India is really attractive
to us. It is the only market that has
done all of this.
How will it help your business in
India?
ANIRBAN BORA
ON RIGHT-SIZING three months to a year,
one option is to borrow
We took a against your mutual
very con- fund units. It is similar
to an overdraft facility
scious deci- on a bank account, and
2. How does one apply for a loan?
Some online portals offer you
sion to reduce the the advantage is that loans quickly, if you hold units
in demat form and have a prior
number of branches to you do not have to
approval. If you hold units in physical
prematurely redeem
focus our resources on your units, nor does
form, you first need to execute a loan
agreement with your financier. The fi-
the big 13 cities your SIP get affected. nancier will write to the mutual fund
registrar like CAMS or Karvy and ask
ET explains the
them to mark a lien on a certain num-
Some foreign banks are launching
process and the type ber of units that are being pledged.
wallets to get access to deposits in of funds that can be Financiers typically lend about 60-70%
offered as collateral of the value of the pledged units. The
India. Any such plans for HSBC?
registrar in turn will mark the lien and
I spent a lot of time in China in the
a letter is sent to the financier with a
last three years and in the offices 1. How can you get a copy to the investor confirming the
of Alipay and Tencent. I under- loan against your marking of a lien on the units.
stand their wallets well. We mutual fund units?
launched our own wallet in Hong
What would it cost? 3. How can the lien on the mutual
Kong, called PayMe, nine months
Loan against fund units be removed?
ago, which helps transfer money your equity or
through a phone number. As we hybrid mutual Once the loan is repaid by the
fund units could be tak- borrower, the financier can
look at new infrastructure, one of
en from a bank or a non- ask for removal of the lien and
the consideration is a wallet but
banking finance compa- send a request letter to the fund
we need to determine the use case
ny (NBFC) by pledging house. A financier can also request
for it in India. In China, it exists on your mutual fund units. for a partial removal of lien in which
the back of the social media plat- You can pay back the case, lien on some of the units will be
form. There is no similar capability loan at the interest rate removed and these units are free
agreed with the financi- units. This can happen when financi-
in India. As regulations move and
er. Depending on the ers receive part payments.
the quality of repository improves
to allow us to open accounts on- quantum of loan you
take and the tenure, the 4. What happens if the investor
line, it will be an area we will defi- interest rate could be in
defaults in making payment to the
nitely build capabilities for. We the range of 10-11% on
also have to fix our mobile capabil- these mutual fund
financier?
ity and underlying architecture in units. When the units In case the borrower defaults in
are under lien, you can- making payment, the financier
the next 12 months. I am yet to be
Our traditional model has been to not sell or switch the can enforce the lien i.e. send a
convinced that wallets are the
support the international needs of units. Financial plan- signed request to the mutual fund to re-
right place to spend the time and ners recommend taking deem the units and send the proceeds
our customers, which is a narrow
set. Our credit card book is small
the money. on equity-oriented mu- cheque to the financier.
because we have a small network
You said your acquisition rate for
tual funds and not
against liquid or debt- 5. What is the advantage of
and small distribution capability
but once you overlay new capabili-
new customers has doubled. How oriented funds. borrowing against your mutual
has that been possible? fund units?
ty, new technology and new ways
We used third-party sales agents Loan against mutual funds
of customer validation, you are not
restricted any more. Our team has
and mobile sales force to acquire gives you the option of receiv-
new customers. We also used digi- ing immediate liquidity against
doubled the rate of new bank cus-
tal aggregators to get more leads. the mutual fund units that you own. It
tomers added in the last one year. is like an overdraft facility for short-
In India, the retail banking and
We went through a period of con-
solidation in India over the last few
term monetary requirements, with a
wealth management business pro-
vides a source of funding for our
years but now, we are in growth
relatively shorter tenure than other
loans. It is a beneficial monetary tool
phase. We simplified our business for those looking to leverage their oth-
commercial banking and global
and got back to what we knew erwise idle mutual fund investments,
banking business. The opportunity
well. We also know customers bet- and also raise capital quickly for short
exists partly in the credit card -term financing needs. You need not
ter because of Aadhaar and credit
business, which we are rebuilding, sell your mutual fund units, hence your
bureaus. Our credit card share is
part of it is designing mortgages financial plan remains intact and nei-
not even 1%. Part of the opportuni-
tailored only for our customers ther is your ownership of fund units di-
ty for us is to reclaim our share in vested after pledging them for a loan.
and part of it is to build easy ac- TEXT: Prashant Mahesh
credit cards on a par with other
cess to savings and checking ac-
markets in Asia. We have already
counts that people can open on-
improved our capabilities on third-
line. We took a very conscious
party sales agents. We are now
decision to reduce the number of
writing mortgages at a similar pace
branches to focus our resources on
of a year ago. Its now a growth
the big 13 cities last year but, at
story in India though our underly-
the same time, retain the vast ma-
ing role is to provide funding to
jority of our deposits, which we
our corporate bank.
have retained by 90%.

Whats Cooking? A Healthy Bull Market

LPG Ecosystem, is What
Expert Take
SAURABH KAMDAR
In purchasing parity terms, per capita
income in India is the second-highest
compared with its four immediate
south Asian neighbours.
Yet a cylinder of cooking gas (lique-
fied petroleum gas, or LPG) in Pakistan
and Nepal costs twice as much as in
India, and ~40% more in Bangladesh
and Sri Lanka. Clearly, these countries
with far more difficult developmental
challenges have bitten the bullet.
In the context, the Narendra Modi gov-
ernments move this week to hike LPG
prices by `4 every month is exactly
what the doctor ordered. Just as would
be the reported move to raise the price
of kerosene by 25 paise every fortnight.
To be sure, LPG prices by itself are not
the sole barometer of any govern-
ments commitment to extending af-
to cause ailments such as asthma and
bronchitis. Reasons why LPG connec-
tivity is crucial from a health perspec-
tive.
But any attempt to strike a balance be-
tween economic and social compul-
sions throws up challenges, and the po-
litically easier path to take in the case
of LPG would be to continue with gen-
eralised subsidy.
To be sure, subsidy is a sensitive issue,
especially because it affects the liveli-
hood of the poor. And more so since it
protects them from market-price vagar-
ies and facilitates sustenance.
Last fiscal alone, under-recoveries in
LPG and kerosene tantamount to
`20,000 crore. This years Union Budget
has set aside `25,000 crore for oil sector
subsidy.
ANIRBAN BORA
To its credit, the government has been
trying to wean people away from subsi-
dy in a methodical manner: its sourc-
ing more LPG, is ramping up infra-
structure or supply and
distribution especially last-mile con-
nectivity and extending connections
to below poverty line (BPL) households
through the Pradhan Mantri Ujjwala
Yojana (PMUY).
Most importantly, the government
has been extraordinarily successful in
persuading tens of thousands that
didnt need subsidy to Give It Up vol-
untarily.
It is also trying to tackle illegal diver-
sion of domestic gas for commercial us-
age, which in a country as large as India
is very difficult to curb completely.
What creates room for such sharp prac-
tices is a 35% cost differential between a
commercial LPG cylinder (`1,000 for a
19 kg cylinder) and a domestic one (`477
for a 14.2 kg cylinder).
The governments approach has been
two-pronged: one, target reduction in
subsidy and consequently increase the
capacity to invest in infrastructure, and
two, continue extending benefits to
BPL households through PMUY.
Indeed, these are stepping stones to
creating open-market efficiencies, and
in a progressive society, generic subsi-
Likely to Be
Longest
on Record
Bloomberg
New York: Bull markets dont
die of old age and with neither a
major policy mistake nor a sig-
nificant economic disruption on
the horizon, theres life in the
current cycle yet.
Thats the view of Krishna
Memani, chief investment of-
ficer at OppenheimerFunds. in
a recent paper, which details at
least 15 reasons the
current U.S. equity bull market
will persist for a ninth year.
Events of the past year includ-
ing make-or-break elections for
the euro have washed over fi-
nancial markets, suggesting
policy, not politics, would be the
rallys undoing.
Memani sees support for the
stock market from global eco-
nomic growth, an end to the dete-
rioration in global trade and no
plans for significant monetary
policy tightening from either the
Federal Reserve or the European
Central Bank.
Stocks still cheap compared to
bonds: Despite share valuations

fordable services. The ability to invest
in infrastructure, making services
including revenue models efficient
and viable, while simultaneously ex-
tending subsidy to the economically de-
serving class, actually matter more.
The government seems seized of this
and has looked at access to LPG from
social, health and environment per-
spectives.
Switching from wood to LPG reduces
net carbon emissions by 67%, accord-
ing to a study by World LP Gas
Association. Estimates are that annu-
ally, a non-LPG household and there
are 8 crore of them consumes wood
equal to 10 trees, so the environmental
gains from proliferation of LPG are hu-
mongous.
Chronic exposure to smoke from the
burning of traditional cooking fuels
such as firewood and cow dung is said
And one past attempt to rationalise
ration would a better word, actually
consumption of subsidised LPG cylin-
ders at homes had limited impact
because, after setting an annual quota
of 6 per year, the number was revised to
9 and eventually to 12 under political
pressure, which pulled things back to
square one.
The Modi government has adopted a
different approach by limiting the
amount of subsidy it bears per cylinder.
Not surprisingly, as a proportion of the
price of a cylinder, subsidy has been re-
ducing. Of course good luck in the form
of falling crude prices have played a
very important role here.
dies should be avoided for they are fis-
cally debilitating incentives and end up
creating moral hazards.
Open markets always attract invest-
ments, and competition results in bet-
ter services to consumers. At the end of
the day, revenue models have to be via-
ble, too. An efficient LPG ecosystem
that offers access to cleaner fuel for the
masses at fair prices, and which doesnt
haemorrhage through wanton subsi-
dies or one where subsidies are rein-
stated at the first sign of political pres-
sure would indeed qualify as a fairly
viable business model.
Indias LPG ecosystem seems to be fi-
nally taking that road, towards long-
term sustainability, by limiting subsidy
to only the most deserving lot. Clearly,
good economics is good politics.
(Author is Director, CRISIL
Infrastructure Advisory)
looking expensive relative to his-
tory, they are still cheap in relation
to bonds, Oppenheimer says. The
earnings yield of the S&P 500 re-
main over 2 percentage points
greater than the yield on US
Treasuries.
Bull markets usually end after a
prolonged, pronounced period
of long-term outperformance to
bonds, according to the paper.
There has been no signs of inves-
tor euphoria about equities, as re-
cent long-term relative returns
are not excessive.
Since 1994, the yield difference
between bonds of speculative-
grade borrowers and government
debt has been narrower than aver-
age more than half the time while
indicators of corporate health re-
main sound, according to
Oppenheimer.
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12  Finance & Commodities THE ECONOMIC TIMES | BENGALURU | THURSDAY | 17 AUGUST 2017

Tweet of the Day
Mohamed A. El-Erian
@elerianm
Not surprising @amazon
would look to the #bonds
markets to fund part of
their expansion. Other
companies at similar stag-
es likely to follow
PRESSURE POINT Diverging opinions surface within 6-member monetary policy panel; insiders concerned over price pressures
Slow Growth Worries MPCs External Members
Our Bureau
Mumbai: The concerns of two
sets of members of the Monetary
Policy Committee the three
nominated by the government
and the other three from the Re-
serve Bank of India are begin-
ning to show divergence with eco-
nomic growth figuring promi-
nently among outsiders, minutes
from the meeting show.
Outside members of the MPC
have commented more about the
slowing growth than the threat of
inflation compared with insiders
who have voiced fears over price
pressures, the state of the bank-
ing industry and uncertainties on
how the future would pan out.
There was near unanimity that
inflationary trajectory was not as
expected, but there was no conclu-
sive evidence about whether caus-
es were permanent or temporary.
While four voted for a quarter
point cut in its August 2 policy
meeting, Ravindra Dholakia who
had dissented in the past too, had
argued for a half point cut. RBI ex-
ecutive director Michael Patra
was for a status quo citing para-
doxical arguments of weak
growth while every forecast is for
strong growth.
Moving on to forward looking
indices that predict future eco-
nomic activity, growth in the Indi-
an Leading Index, constructed by
the Economic Cycle Research In-
stitute (ECRI), New York, is fall-
ing, as is Indian Leading Exports
Index growth, said Pami Dua.
These are indicative of a fading
economic growth outlook, and a
pessimistic outlook with respect
to exports growth.
Chetan Ghate of the Indian Sta-
tistical Institute was worried
about growth. My biggest con-
cern at the moment is the slowing
rate of capital accumulation,
Ghate has written. Indebted
manufacturing companies con-
tinue to de-leverage, and envi-
saged capex continues to decline.
A prolonged period of weak in-
vestment growth will impact po-
tential growth.
The MPC with a mandate to keep
inflation at 4% with a tolerance
limit of 2 percentage point on ei-
ther side, has been focussed on it
after years of price increase led to
macro-economic complications.
Arabica
Coffee Prices
Edge up
But the past few years of prudent and corporates in several sec-
policies pushed June CPI infla- tors. Arabica coffee futures
tion to a record low of 1.54%, were higher on
which has since risen. While ad-
mitting that price pressures have Wednesday, recouping
eased, Governor Urjit Patel said, some of this weeks
disentangling recent disinfla- losses, tracking a modest
tion in terms of relative roles of
rebound in other
structural and, transitory drivers
remains a challenge. The present commodity markets.
low level of food prices is unusual
and is vulnerable to upward pres-
sures. Deputy governor Viral
Acharya who voted for a
quarter point cut and
neutral stance
noted: I wish to re-
iterate that growth
slowdown since Q1
2016-17 is rooted in
stressed balance-
sheets of our banks

Quarts & Ounces How to Spend $100b? Maybe Chinas Suicidal Debt can December Arabica
Coffee Futures
Index
COMMODITIES (2003=1000)
Buffetts Confused too Trigger Next Fin Crisis
Why is $100 billion stockpile
es in private and public debt, and
$1.3635 $1.3510

thus increasing downside risks in

Bullion CHANGE -30.1
a problem IMF study shows that the medium term.
On Wednesday On Tuesday
Berkshire Hathaways (Per lb)
DAYS INDEX PREV DAYS LAST WEEK This $100 billion isnt generating
second-quarter earnings borrowing has reached Credit to the non-financial sector

.59
4599.6 4629.7 4529.2 any substantial returns for Berk- has doubled in the last five years, Rise in December
report revealed that the
shire or its investors. Buffett likes unsustainable levels the report says, and the credit to arabica coffee on
Cement CHANGE 0.00 to keep at least $20 billion in read-
companys cash stockpile
has grown to nearly $100
GDP ratio jumped to 230% last year. %Wednesday
DAYS INDEX PREV DAYS LAST WEEK ily available cash at all times, and Citing the experiences of other
billion, virtually all of Business Insider countries which have fuelled
2041.4 2041.4 2054.7 after the quarter ended, Berkshire
announced its intention to spend which is located in the growth via taking on debt aggres- 0.07%
US and would be relatively Beijing: Chinas huge debt pile sively, the fund warned Rise in December London
Foodgrains CHANGE -1.0 $9 billion on an acquisition, but
easy to put to work.
could be the trigger for the next that the current tra- cocoa on Wednesday
DAYS INDEX PREV DAYS LAST WEEK this still leaves more than $70 bil- financial crisis as borrowing jectory of Chinas
2136.8 2137.8 2106.9 lion sitting on the sidelines. Unless Unfortunately, reaches unsustainable lev- debt is danger-
Buffett figures out how to put this Warren Buffett and his els, according to a study from ous. $19
money to work, this stockpile of team seem to be having the International Monetary International
Edible Oil CHANGE -4.0
cash will continue to grow. difficulty figuring out Fund (IMF). experience sug-
Rise in November robusta
DAYS INDEX PREV DAYS LAST WEEK The IMF released its annual gests that Chinas coffee price on Wednesday
1421.6 1425.6 1378.3 Attractive Investment what to do with it
report on the Chinese econo- credit growth is on
Opportunities Hard to Find
Berkshire has a pending $9 billion
my, as it does with all major
economies, on Tuesday,
a dangerous trajec-
tory, with increasing
0.11%
acquisition of Texas-based utility and while it revised risks of a disruptive ad- Gains in December New
tors, share repurchases make Could Berkshire Start Paying
Did You Know? Oncor, but the last major acquisi- the coun- justment or a marked York cocoa on Wednesday
sense if the shares are bought at a Dividend? trys growth slowdown,
tion the company completed was
price below intrinsic value. Berk- In the more than 50 years since growth the report said.
Worlds Shipping its $32 billion purchase of Preci-
shires current buyback authorisa- Buffett took over Berkshire, the outlook up- The scale of Chinas
REASONS FOR RISE
sion Castparts. In reference to this IN COFFEE PRICE
Cos are Going purchase, Berkshires Vice Chair-
tion is set at a limit of 120% of
book value (its currently trading
company has paid a single $0.10
dividend in 1967, and nothing
wards for the
next four
debt binge is revealed by
the IMF, noting that to grow Chi- Market supported by
Super-Sized man Charlie Munger said this is
no screaming bargain like the old
for about 146% of book value).
Buffett feels that, at this price,
since. However, at a recent meet- years, the fund al- so issued
a stark warning about rising debt
nese GDP by 5 trillion renminbi in
2015-16, it took around 20 trillion
a slight rise in crude
days, meaning that its difficult to
ing, Buffett said dividends could
levels. The growth outlook has renminbi of new credit. oil
The hulking con- shares would be trading at a sig- be paid reasonably soon, even
find compelling bargains in the
nificant discount to intrinsic value.
been revised up reflecting strong By contrast, in 2007 it required just Speculators have
tainer ships that while I am around. Dividends are momentum, a commitment to 6.5 trillion renminbi of borrowing
current environment.
Buffett has said that if Berkshire been increasing a net
transport sneak- likely to be the last thing Buffett growth targets, and a recovering to do so.
Buyback Threshold Can be continues to generate more cash wants to do with Berkshires cash.
short position
ers, bananas and global economy, the IMF said in its Actual growth that was not fuelled
Raised than it can use, the company may report. by borrowing was much lower than Ample supplies
barbie dolls around the In his 2016 letter to shareholders, need to revisit its buyback policy, But this comes at the cost of fur- headline numbers in recent years,
world keep getting bigger. SOURCE: BUSINESS INSIDER; ADOPTED Source: Agencies
Buffett said for long-term inves- perhaps raising the threshold. FROM THE MOTLEY FOOL
ther large and continuous increas- the report showed.
So are the companies that
own them. A massive con-
solidation is underway in MCX FUTURE PRICES
the $500 billion global in-
NOT SO LUCRATIVE BONDS Mutual funds of ICICI Prudential
dustry and the survivors and SBI are the two biggest subscribers of Essel Mining bonds Onion Prices PRODUCT
EXPIRY DATE
OPEN HIGH LOW CLOSE VALUE
(LAKH)
VOLUME
(LOTS)
OPEN INT.
(LOTS)
now enjoy big economies of ALUMINI-1KGS (Lot-1 MT)

to Stay Firm in
scale and increased de-
mand, one year after excess
capacity caused the sectors
Crisil Downgrades Essel Mining; West Bengal
31-Aug-17
29-Sep-17
31-Oct-17
129.75
130.65
131.00
ALUMINIUM-1KGS (Lot-5 MT)
31-Aug-17 129.70
132.25
132.85
133.15

132.25
129.75
130.60
131.00

129.70
132.00
132.55
132.90

132.00
12957.97
1826.99
14.60

28846.98
9837
1380
11

4379
9059
2497
66

4426

worst-ever crisis the

bankruptcy of South Ko-
SBI, ICICI Pru Funds may be Hit 29-Sep-17

13-Oct-17
131.00
CARDAMOM-1KGS (Lot-100 KGS)
15-Sep-17 1172.80
1166.70
132.85

1207.80
1166.70
131.00

1172.80
1135.50
132.60

1183.80
1155.10
9416.76

342.80
79.81
1422

288
69
2667

333
131
reas Hanjin Shipping. Asias Saikat.Das1@timesgroup.com SELECT ESSEL MINING BONDS 15-Nov-17 1051.50
COPPER-1KGS (Lot-1 MT)
1107.10 1051.30 1082.00 5.41 5 13

largest container line, Chi- 31-Aug-17 410.85 415.40 409.50 415.00 81679.18 19802 18764

nas Cosco Shipping Hold- Mumbai: Fund houses ICICI Bond sale date Coupon Maturity Amount 30-Nov-17 416.50 421.35 415.65 421.10 6966.52 1668 4324
28-Feb-18 422.00 426.00 422.00 425.65 55.30 13 56
ings, last month said it Prudential Mutual Fund and SBI rate (%) date (` in Cr) COPPERM-1KGS (Lot-250 KGS)
31-Aug-17 410.50 415.30 409.35 414.95 15359.48 14897 10261
MF are staring at mark-to-mar-
would pay more than $6 bil- ket losses after rating company January , 2017 7.9 April, 2020 85 30-Nov-17 416.60 421.45 415.75 421.00 1334.52 1275 2625
28-Feb-18 421.95 426.05 421.95 425.45 52.06 49 183
lion for rival Orient Over- Crisil downgraded non-converti- COTTON-1BALES (Lot-25 BALES)
seas International, owner of ble debentures of Essel Mining & January, 2017 7.83 April, 2018 130 31-Oct-17 18360.00 18480.00 18200.00 18420.00 2750.00 599 2197
30-Nov-17 17920.00 17950.00 17790.00 17920.00 1171.54 262 755
the worlds biggest vessel Industries to AA- and put the June, 2016 9.35 June, 2019 225 29-Dec-17 17870.00 17870.00 17730.00 17820.00 1611.31 362 1557
Aditya Birla group company on a Sutanuka.Ghosal CPO-10KGS (Lot-10 MT)
a carrier longer than the @timesgroup.com 31-Aug-17 494.00 498.80 493.50 496.90 9023.87 1817 3293
rating watch list. June, 2016 9.5 June, 2019 250
Empire State building. Den- Mutual funds of ICICI
29-Sep-17
31-Oct-17
495.80
497.40
499.50
499.50
495.40
495.30
498.80
498.60
4441.87
219.02
892
44
2502
621
marks A.P. Moller-Maersk Prudential and SBI are the two November, 2014 10.1 Jan, 2018 15 Kolkata: Onion prices will re- CRUDEOIL-1BBL (Lot-100 BBL)
main firm in West Bengal at least 21-Aug-17 3070.00 3080.00 3057.00 3062.00 115765.16 37704 20398
is in the process of buying a biggest bond subscribers of Essel 19-Sep-17 3086.00 3105.00 3082.00 3087.00 5294.92 1711 3233
Mining whose total outstanding November 2014 10.1 Dec, 2017 15 till the end of September as wide-
German competitor and spread crop losses due to flood-
18-Oct-17 3125.00 3125.00 3116.00 3121.00 96.78 31 267
via bond sales stands at `844.50 Source: Crisil/Markets
CRUDEOILM-1BBL (Lot-10 BBL)
boasts its own fleet of mega ing in northern parts of the state 21-Aug-17 3088.00 3088.00 3058.00 3063.00 15711.00 51168 43807
crore, according to data from Any notch of downgrade leads ICICI declined to comment. 19-Sep-17 3100.00 3104.00 3084.00 3086.00 1240.58 4010 8786
ships, including one that Crisil and mutual fund analytics rise in yields by at least by 10-20 In its latest funding raising, have caused shortages in retail 18-Oct-17 3127.00 3130.00 3110.00 3112.00 51.84 166 647
can carry about 180 million firm Value Research. ICICI basis points. However, if the pa- Essel Mining mopped up about markets. GOLD-10GRMS (Lot-1 KGS)
05-Oct-17 28950.00 28970.00 28814.00 28831.00 147397.15 5104 6765
iPads. Bloomberg Prudential, the countrys top per is illiquid or cannot be easily `215 crore in January by selling Onion, which is an essential in- 05-Dec-17 29033.00 29033.00 28915.00 28926.00 2433.60 84 3026
fund house, has subscription of transacted in the secondary mar- two series of bonds within weeks gredient of Bengali cuisine, saw 05-Feb-18 29040.00 29040.00 29040.00 29040.00 29.04 1 306

`455 crore, showed the data up- ket in the absence of enough buy- interval, offering 7.83% and 7.9% prices shoot up to . 50 per kg in GOLDGUINEA-8GRMS (Lot-8 GRMS)
31-Aug-17 22992.00 22992.00 22906.00 22925.00 93.84 409 928
dated till July end. SBI MFs expo- ers and sellers, the yield rise is rates with upto three year and the last one week from . 30-35 per 29-Sep-17 23139.00 23140.00 22900.00 23036.00 23.95 104 156
sure is about `133 crore. notional, he said. But, if an in- four-month maturities. kg. Like Bengal, floods have also 31-Oct-17 23699.00 23699.00 23699.00 23699.00 0.24 1 3
GOLDM-10GRMS (Lot-100 GRMS)

Gold Prices Up Crisil has downgraded Essel

Minings non-convertible deben-
vestor wants to exit, the notional
yield becomes the actual price
While ICICI Prudential MF sub-
scribed the majority of bonds in a
hit the neighbouring state of Bi-
har but that has not pushed up
05-Sep-17
05-Oct-17
28978.00 28978.00 28756.00
29000.00 29000.00 28837.00
28784.00
28866.00
17260.62
2954.67
5987
1022
4883
1414
onion prices there as the state
ahead of Minutes
03-Nov-17 29015.00 29022.00 28884.00 28899.00 92.62 32 94
tures to AA- from AA and put the guidance, Manglunia one-on-one deal, SBI MF bought GOLDPETAL-1GRMS (Lot-1 GRMS)
company on rating watch list said. another set of papers worth `85 has its own production and is al- 31-Aug-17 2863.00 2873.00 2856.00 2857.00 103.83 3627 8502
so getting supplies from UP.
from Fed Meet with negative implications, Ashish Agarwal, exec- crore without the presence of 29-Sep-17 2898.00 2898.00 2880.00 2881.00 25.88 897 2597
meaning another downgrade is utive director at AK any investment banker, said a Prices of onion will remain 31-Oct-17 2893.00 2902.00 2893.00 2897.00 2.23 77 261
LEAD-1KGS (Lot-5 MT)
not ruled out, citing delay in the Capital Services, person aware of the matter. firm in the next one-and-a-half 31-Aug-17 150.25 154.90 150.25 154.65 69555.97 9061 3816
BENGALURU Gold months at least. Over the last few
resumption of mining opera- said, A downgrade If those funds sell their hold- 29-Sep-17 153.10 155.55 153.00 155.35 4479.92 581 551
prices firmed early on tions at Jilling iron ore mines. can also breach an ings today they would get months prices LEADMINI-1KGS (Lot-1 MT)
31-Aug-17 149.80 154.85 149.80 154.65 21398.46 13943 5924
Wednesday as the The delay is leading to lower investors investment 8-8.05% yield, said a market have not gone up 29-Sep-17 150.25 155.55 150.25 155.30 1967.93 1278 933
than expected mining volumes pattern prompting dealer who works closely with Onion, which because of our 31-Oct-17 154.00 154.40 154.00 154.20 3.08 2 3
dollar weakened is an essential own produc- MENTHAOIL-1KGS (Lot-360 KGS)
and hence lower than expected him to look for des- fund houses. 31-Aug-17 1168.00 1198.20 1168.00 1186.70 20463.65 4793 3467
slightly, with investors waiting for cash accruals, Crisil said in a perate exit route. ICICI SBI fund deployed ingredient of tion. Our own 29-Sep-17 1197.00 1209.60 1184.10 1202.40 4801.97 1113 2438
note last week. A cut in a compa- SBI and Essel Essel Mining securities in Bengali crop has now 31-Oct-17 1210.20 1220.20 1200.30 1209.30 640.77 147 332
the release of minutes from the US cuisine, saw NATURALGAS-1mmBtu (Lot-1250 mmBtu)
nys credit worthiness results in Mining did not reply dual advantage and treasury ad- come to an end, 28-Aug-17 188.10 188.10 186.00 187.50 25489.84 10899 6407
Federal Reserves last meeting in spike in bond yields, push- to ETs emails vantage funds. Crisil said the de- prices shoot Purnendu Ba- 26-Sep-17 190.00 190.60 188.80 190.20 1461.80 616 597
July for clues on the pace of potential ing prices down, experts seeking com- lay in resumption of mining op- up to . 50 per su, agriculture 26-Oct-17 195.50 195.60 194.30 194.80 73.21 30 97
NICKEL-1KGS (Lot-250 KGS)
said. The debt market ments. erations at Jilling iron ore mines kg in the last minister of
interest rate hikes. Spot gold was up one week
31-Aug-17 666.00 678.30 666.00 676.80 29426.37 17494 17675
turns apprehensive is leading to lower than expect- West Bengal, 29-Sep-17 672.00 682.90 672.00 680.90 971.30 574 3022
0.1% at $1,272.47 per ounce by 0048 following any down- ed mining vol- from . 30-35 told ET. We are 31-Oct-17 681.30 685.00 681.30 683.10 6.83 4 61
NICKELM-1KGS (Lot-100 KGS)
GMT, after falling for two straight grades, especially af- umes and per kg now trying to 31-Aug-17 669.20 678.10 666.20 676.50 10223.41 15194 8287
ter a raft of defaults in hence lower bring onions 29-Sep-17 672.50 682.80 672.30 681.60 564.22 833 1529
days. Dollar edged lower in Asian 31-Oct-17 678.60 686.00 678.60 681.70 2.05 3 41
the past one-two year than expected from Maharashtra. However, It PEPPER-100KGS (Lot-1 MT)
trading on Wednesday, but held most in credit space, said cash accruals will take some time. 20-Sep-17 48200.00 48250.00 47830.00 47910.00 239.97 50 110
of its gains made after US retail sales Ajay Manglunia, execu- for Essel Incessant rains over the past 18-Oct-17 48050.00 48200.00 48050.00 48145.00 19.26 4 55
RBDPMOLEIN-10KGS (Lot-10 MT)
tive vice-president at Mining. six days has inundated 3.75 lakh
data suggested the economy continued hectares of agricultural land in
31-Aug-17 540.00 541.70 540.00 540.90 27.05 5 8
Edelweiss Financial Services. SILVER-1KGS (Lot-30 KGS)
to gain momentum in third quarter. north Bengal. Another 15,000 05-Sep-17 38500.00 38501.00 38305.00 38354.00 112397.31 9759 14433
05-Dec-17 39040.00 39078.00 38875.00 38976.00 21861.93 1869 3299
hectares of vegetable farmland 05-Mar-18 39631.00 39631.00 39545.00 39587.00 83.13 7 40
is also submerged under water. SILVERM-1KGS (Lot-5 KGS)
31-Aug-17 39120.00 39120.00 38321.00 38370.00 24710.57 12863 13963
Traders said demand for Maha-
NCDEX MD Oil Edges up Dollar Holds London Zinc
30-Nov-17 39371.00 39371.00 38924.00 39006.00 2372.76 1216 2042
rashtra onions has picked up as 28-Feb-18 39715.00 39715.00 39539.00 39569.00 27.72 14 32
there was shortage in Karnataka ZINC-1KGS (Lot-5 MT)

Gets 6-month on Falling US Firm Before Hits Highest and Andhra, the other two main
onion producers, because of def-
31-Aug-17
29-Sep-17
31-Oct-17
187.65
187.75
191.85
193.90
194.40
194.55
187.65
187.75
191.85
193.60
194.15
193.65
190332.91
11961.49
655.22
19821
1242
68
12519
1809
350

Extension Crude Stocks Fed Minutes in a Decade icit rainfall there. Excess rainfall
in Rajasthan and Gujarat has re-
ZINCMINI-1KGS (Lot-1 MT)
31-Aug-17
29-Sep-17
187.50
188.80
193.85
194.70
187.50
188.80
193.60
194.10
49692.13
4735.14
25877
2459
15806
3369
NEW DELHI Sebi LONDON Oil prices LONDON The dollar MELBOURNE duced supplies from there, con- 31-Oct-17 188.60 194.60 188.60 194.25 75.20 39 111
tributing to a jump in prices.
gave nod for exten- edged up, lifted by held on to big gains London zinc hit its Barring potato, most vegeta- MCX-COMDEX COPPER (RS/1KGS)
sion of Samir Shah's declining US crude on Wednesday highest in almost a bles have turned 10-15% costlier 3250 450
3196.83
tenure as NCDEX inventories, al- before minutes of decade as Chinese in Bengal in past one week, forc- 3129.13
ing chief minister Mamata Ba- 3175 425
MD for six months even as though markets were still re- the US Federal Reserve's latest infrastructure demand that has nerjee to call a meeting of the
3100 400
advertisement has been issued strained by excess supply. Brent meeting, while European shares fed a rally in steel prices for agriculture task force on Au-
415
by the bourse for selection of a crude futures were at $51.14 per followed Asian stocks higher. months spills into markets for gust 22. Pradip Mazumdar, agri- 364.55
3025 375
culture advisor to Banerjee,
new candidate. Shah was ap- barrel at 1010 GMT, up 34 cents, Relative calm in the standoff steelmaking raw materials. LME said although onion production 2950 350
pointed in 2013 as per regu- or 0.66%, from their last close. between the United States and zinc peaked at $2,994 a tonne, in the state has risen to 5.5 lakh May 18 Aug 16
latory framework of erstwhile having cracked its November tonnes, it is still below demand.
WTI crude futures rose 27 cents, North Korea also lifted investors'
MCX prices as on 16 August 2017, 5PM IST Compiled by ETIG Database
FMC for three years till 2016. or 0.56%, at $47.82 a barrel. appetite for riskier assets. 2016 high.
 https://telegram.me/TheHindu_Zone https://telegram.me/PDF4EXAMS

WWW.ECONOMICTIMES.COM
Economy: Macro, Micro & More  13

Monsoon
Rainfall deficit NW, east & NE Large deficit Heavy rainfall Parts of NW Max temperatures
India have India to
of 56% received 3% in normal likely over over NW plains to
receive
recorded over excess rainfall so rainfall was parts of south rise by 2-3
CURRENT scanty

Watch the country on

Wednesday
NW India received
far this season recorded
over 66%
area of the
WEATHER &
FORECAST
peninsula over
next 3 days
Widespread
rainfall over
next few
days
degrees Celsius
towards Friday

91% deficient Rainfall deficit of 4% country rainfall likely in parts Few parts of Central India
rainfall on recorded over the of east & NE India over to receive widespread
Wednesday country since June 1 next few days rainfall over next 3 days

Cabinet Okays CGST Refund Scheme Bid for 11 NHs to

Relief for units in HP, Ukhand, J&K and NE till 27; also approves new metro rail policy, changes to strategic divestment plan
ruction in 12 cities. The approval will help in speedy
Run, Transfer Toll
Our Bureau
Get, Set, Go New metro rail policy The policy mandates evaluation completion of strategic disinvest-

New Delhi: The government has

approved a new metro rail policy, a
scheme to refund central goods
and services tax (CGST) to indust-
rial units in Himachal Pradesh, Ut-
tarakhand, Jammu & Kashmir and
the northeast till 2027, and changes
to strategic disinvestment policy
to speed up decision-making.
The cabinet cleared the CGST re-
fund scheme with a budgetary allo-
cation of . 27,413 crore, which will co-
me as a big relief to sectors like phar-
ma, automobiles, FMCG. These
units, which hitherto enjoyed ex-
emption from central excise for 10 ye-
ars, will get a refund of 58% of CGST.
Within the framework of the
GST Act, each industry will be en-
titled to its own refund mechanism
during this particular period (un-
til March 31, 2027), finance mini-
ster Arun Jaitley told reporters af-
ter the meeting of the cabinet that
was presided over by Prime Mini-
ster Narendra Modi on Wednesday.
Under the new GST regime rolled
out on July 1, there is no provision
for exemptions. Central or state go-
vernments, however, are empowe-
red to refund their portion of tax.
Cabinet gave nod to a slew of decisions:
Scheme to refund
CGST in special states
High-powered panel for
strategic disinvestment
Private investment
must for metro rail
or some unbundled
component
58% of CGST to be Panel with FM Jaitley Creation of Urban
refunded to units in on board to take Metropolitan Transport
J&K, NE & hilly states
Scheme to be valid
decisions on
key aspects
Authority must
till Mar, 2027; Centre
to provide `27,423 cr
budgetary support
Core group of
secretaries empowered
to take policy decisions
Enhancing extra budgetary resources for irrigation fund
Nabard to raise `9,020 cr through bonds for irrigation fund
These bonds to ensure lending at 6% interest rate
BOOST TO URBAN TRANSPORT
The cabinet gave its nod to a new
rently, very few metro projects are
being undertaken with private
metro rail policy that seeks to participation.
change the face of mass transit sy- Private participation either for
stems in urban centres and makes complete provision of metro rail
private investment mandatory. or for some unbundled compo-
The new metro rail policy 2017 nents (like automatic fare collec-
will help a large number of cities to tion or operation and maintenance
realise growing metro rail aspira- of services) will form an essential
tions. The policy promotes Make in requirement for all metro rail pro-
India in metro and make these pro- jects seeking central financial assi-
jects cost-effective, Jaitley said. stance, according to the policy
Private investment has been ma- approved on Wednesday.
de compulsory to meet the resour- Jaitley said 370 km of metro lines
ce demands for capital-intensive, were already operational in seven
high-capacity metro projects. Cur- cities and 537 km was under const-
of other modes of mass transit to
ensure selection of the least-cost
public transport model, he said.
STRATEGIC DIVESTMENT POLICY
The cabinet committee on econo-
mic affairs (CCEA) approved an al-
ternative mechanism for pursuing
the governments strategic sale
programme. Under this arrange-
ment, Jaitley, roads minister Nitin
Gadkari and minister of relevant
administrative ministry will deci-
de on matters relating to terms and
conditions of sale from the stage of
inviting expressions of interest to
that of seeking financial bids.
The government plans to sell a
26% stake in BEML and a 51% stake
in New Delhi-based helicopter ser-
vice firm Pawan Hans. Lucknow-
based three-wheeler maker Scoo-
ters India will be the first full stra-
tegic sale with the government loo-
king to divest its entire holding.
The government further empowe-
red the core group of secretaries to
take policy decisions with regard
to procedural issues and to consi-
der deviations as necessary from ti-
me to time for effective implemen-
tation of the CCEAs decisions.
ment deals, the statement said.
So far in this fiscal, the govern-
ment has raised `. 8,427 crore thro-
ugh disinvestment. It has set itself
a target of `. 72,500 crore in the cur-
rent financial year, of which
`. 15,000 crore is to come through
strategic sales. Jaitley said the
Union cabinet was given a presen-
tation on the success of the just-
concluded initial public offer of
Cochin Shipyard.
OTHER DECISIONS
The Union cabinet approved a pro-
posal for raising extra budgetary
resources (EBR) of up to `. 9,020 cro-
re as needed in the current fiscal
year by (Nabard) through bonds to
ensure a lending rate of 6% per ye-
ar on borrowings through the Ac-
celerated Irrigation Benefits Pro-
gramme (AIBP) for 99 ongoing
prioritised irrigation projects.
It approved the creation of a non-
lapsable pool in the public account
for secondary and higher educa-
tion known as Madhyamik and
Uchchtar Shiksha Kosh (MUSK)
into which all proceeds of the se-
condary and higher education cess
will be credited.
Booths in Mid-Sept
Govt seeks to raise On A High
`. 6,500 cr from 7 NHs
in AP and 4 in Gujarat
11 No. of
NHs to
be put up
100 No. of
NHs govt
plans to
for auction lease out
Rajat.Arora@timesgroup.com
7 No. of NHs
running
across Andhra
New Delhi: The road transport Pradesh
and highways ministry is set to `75,000 cr
invite bids for 11national highwa-
ys next month under its toll-ope-
4 No. of NHs
in Gujarat
Amt govt
aims to raise
as revenue
rate-transfer (TOT) model as it 700 km Total
from these
seeks to raise `. 6,500 crore, a top length of these
100 NHs
government official said highways
The auction will involve seven
highways running across Andh-
ra Pradesh and four in Gujarat.
The total length of these highwa-
ys is just under 700 km. rity of India (NHAI) is likely to
The bidding will begin in mid- provide a risk cover to the lessee
September and we plan to wind for any unforeseen circumstan-
up the process in a couple of ces such as a rapid fall in toll col-
months, the official told ET on lection and any structural or eng-
condition of anonymity. More ineering fault on the highway.
such projects would be lined up Road transport and highways
for bidding early next year. minister Nitin Gadkari told the
Under the TOT model, pension Lok Sabha earlier this month

CBEC to Build Information Repository on Imports

Single window to soon address global suppliers basic queries in a simple language
Deepshikha.Sikarwar
@timesgroup.com
New Delhi: Can a specific type of
meat be exported to India? What
procedures need to be followed?
Global suppliers eyeing India's
growing economy will soon be able
to get such basic queries on exports
answered through a single win-
dow, freeing them from the maze of
multiple complex notifications
scattered across various websites
ANIRBAN BORA
tral repository to provide a suppli-
er all the information required
about norms governing product
imports in simple language. This
will be available on one site or via a
mobile app.
The idea is to make it simple for
traders to access information, a
government official told ET. Any
information about any regulation
would be available at the click of
mouse or a tap on the mobile.
Though all the information is av-
ailable, traders need to plough
funds and PE firms are allowed to that international investors such
lease government-owned natio- as ADIA, GIC, Temasek, Hastings
nal highways for 30 years for an Funds Management, Keppel In-
upfront payment. The lessee, in frastructure Fund Management,
turn, gets the right to collect the Morgan Stanley Infra, Equirus
toll, operate, manage and mainta- Capital and JP Morgan Asset Ma-
to traders. The difficulty in finding gramme has also allowed for risk- in the highway stretch. nagement were keen to invest in
the information is also seen to be based assessment at customs. The National Highways Autho- India under TOT model.
hindering ease of doing business. India has adopted the National
This exercise is also part of the go- Action Plan for Trade Facilitation,
vernment's effort which aims to roll out steps to ma-
at trade facilita-
tion.
ke it easier to do business.
India is ranked 133 in the World
Creating A New Asset Class
Effort would
It makes perfect sense to monetise toll
be to make
regulations
CBEC has already
launched a portal
Banks ease of doing business ran-
king on the trading across bor- VIEW collections upfront, and plough back funds
navigable & to allow importers ders parameter because of paper- for reinvestment in highway projects. In
information and exporters to fi- work taking too much time and parallel, we need to leverage IT to transparently and efficiently
readily le a single form at high costs. Border compliance ta-
available to ports for clearan- kes 311 hours compared with nine boost toll payments in digital mode. Monetising infrastructure
traders ces from all go- in high-income OECD countries. would amount to a new asset class for long-term investors like

of ministries or departments
thats fiendishly difficult to access.
The Central Board of Excise and
Customs (CBEC) is undertaking a
mammoth exercise to build a cen-
through various ministry and de-
partment websites to find it.
The official said the effort would
be to make regulations navigable
and information readily available
vernment agenci-
es including the Drug Controller
General of India, Plant Quaranti-
ne and the Food Safety and Stan-
dards Authority of India. This pro-
Documentation compliance takes
67 hours versus four hours.
The government has identified
ease of doing business as a key fo-
cus area to attract investment.
pension funds and sovereign wealth funds. It has the potential to
shore up investment for infrastructure, and also provide at-
tractive returns with low attendant risks for investors.

Entrepreneurs IMPACT SEEN IN WORKING CAPITAL FLOW

Seek Pricing
Predictability & Cos Struggling to Adjust
Ease of Doing Biz
Our Bureau
Past Credits against GST
New Delhi: Entrepreneurs and
Confusion due to glitch
startup founders pitched for conti-
nuity and predictability of pricing in tax form persists as VIEW
as well as ease of doing business,
saying these were essential for filing deadline nears
growth and job creation.
Over 212 entrepreneurs and star-
Clear the Air
tup founders from the financial, The GST Council should clear the
education and health sectors brain- Sachin.Dave@timesgroup.com
air to avoid disputes. The purpo-
stormed on Wednesday to chart out
a plan for New India that will be pre- Mumbai: A top conglomerate may have se of GST is to provide set offs
sented to PM Narendra Modi on to shell out a bit extra in advance tax this across the production and value
Thursday. These were among the quarter due to an unusual glitch in the chain to avoid tax on tax and
key issues pressed by them, accord- tax returns form. Another Delhi-based
ing to a Niti Aayog tweet. firm, which does not want to bear any ex- cascading tax rates for goods
The PM joined the gathering for an tra tax, may simply deduct the dues be- and services. Rightly, the comp-
informal interaction over dinner. fore the GST kicked in on July 1and pay a liance regime was easy to start
The two-day Champions of smaller net amount.
with. A true picture on how well
Change programme under Niti The absence of a column in the new
Aayogs aegis brought together GST form for claiming credit on sales GST is working would be known
young entrepreneurs selected from made before July 1 this year is causing a when companies start getting
six sectors to seek ways of promot- lot of worries for India Inc as the filing refunds on the taxes paid by
ing inclusive growth deadline for the first month of tax re-
and development in turns under GST comes up this week. them. So, procedural lapses, if
India. Many companies dont know whether any, must be corrected to remo-
The entrepreneurs the government will rectify this problem ve any confusion for companies.
interacted with min- by Friday, the deadline for filing returns,
isters and top offi- and are following different options for re-
Over 212 cials including sec- solving the quandary. er. There is no column in GSTR 3B form
entrepre- retaries from vari- Multinationals and some of Indias big- where companies can mention the ad-
neurs & ous ministries and gest companies are not taking into ac- vance taxes paid before July 1. The gov-
startup departments on var- count past input credit while paying GST ernment had said last week that it would
founders while smaller companies that cant af- sort out the issue, but with just four days
ious issues concern-
brainstormed
ing their sectors and ford to let their working capital rise are left for filing the GSTR 3B form compa-
to chart out a
plan for New challenges facing paying the tax after deducting the input nies are not waiting for clarification.
India the country. tax credit. A procedural lapse by the gov- Companies are puzzled by what they
The system is to- ernment doesn't take away companies should be doing and why they could be re-
day geared to drive change. Deci- right to whats prescribed in the law. GST quired to fork out large sums as GST in
sion-making too has become far law prescribes that companies can ad- July and August and the apparent inabil-
more efficient, finance minister just past credits with July and August ity of the government to simply permit
Arun Jaitley told the gathering, ac- liabilities, said the CFO of a New Delhi- the utilisation of the opening credit
cording to a Niti Aayog tweet. based company. while computing the tax liability for July
Niti Aayog vice-chairman Arvind Industry trackers, however, say that do- and August, said a tax expert advising
Panagariya said entrepreneurs ing so may be technically incorrect. four of the biggest Indian companies.
need to focus on job creation, mov- Certain businesses may prefer being Back of envelope calculations by two tax
ing away from capital-intensive or cautious and pay the tax for July and Au- consultants show Indian companies may
high-skill jobs. gust without considering the opening end up paying anywhere around . 13,000
It is encouraging to see that our credit balance, while other businesses crore more to government for July and
Prime Minister and the govern- would adjust the credit and pay the tax, August. If this happens, working capital
ment has invited opinions from leading to disparities in tax treatment costs are likely to rise across the board.
change agents such as new-age en- from the first GST return, said MS Ma-
trepreneurs in solving key prob- ni, partner, Deloitte Haskins & Sells.
lems we face, said Vijay Shekhar The deadline for filing the GST Transi-
Sharma, founder of Paytm. I am tion Credit Form, titled GST-Tran 1, is
confident that this initiative will re- September 28, while that of making pay-
sult in some concrete solutions, and ments for July and August is much earli-
also prove to be an enabler to thou-
sands of budding startups."
Mukesh Bansal of Curefit and
Tushar Vashisth of Healthifyme CFO OF A NEW DELHI-BASED CO
were also part of the group.
IT minister Ravi Shankar Prasad, Aprocedural lapse by the
HRD minister Prakash Javdekar,
rural development minister Naren- govt doesn't take away
dra Tomar and minister of state for
commerce and industry Nirmala cos right to whats
Sitharaman also interacted with
the participants. prescribed in the law
 https://telegram.me/TheHindu_Zone
14  Companies: Pursuit of Profit
Venkat Narayana
Appointed Prestige
Groups CEO
Sobia.Khan@timesgroup.com
Bengaluru: Bengalu-
ru-headquartered re-
al estate firm Prestige
Estate Projects has
promoted Venkat K
Narayana (in pic) as
the chief executive of-
ficer of the company.
Narayana was earlier the executive di-
rector finance and chief financial of-
ficer. He has been involved in the com-
panies operations and growth and has
pioneered several strategic initiatives
to success. He was instrumental in the
listing of shares of the company on In-
dian bourses and for entering into seve-
ral strategic joint ventures.
Irfan Razack, CMD of Prestige Group
said: Venkat is associated with the gro-
up for over 14 years and has been wor-
king very closely with me as a CFO. His
transactional expertise in the real esta-
te industry has greatly benefitted our
company and he has a strong track re-
cord of executing corporate strategy
and driving operational efficiency. I am
confident that he will provide the lea-
dership and drive that is needed to take
the company through the next phase of
growth and deliver value to all stake-
holders. I wish him the very best for his
new assignment. Further, VVBS Sar-
ma, who is associated with the group
for over 2 decades, has been appointed
as chief financial officer in place of Na-
rayana. He will now oversee accounts,
audit andother statutory compliance
related functions of the company.
Spices Board Looks
to get GI Status for
Kashmir Saffron
Our Bureau
Kochi: The Spices Board has teamed up
with the Jammu & Kashmir govern-
ment to secure geographical indication
(GI) status for Kashmir saffron and to
make efforts to boost its output and va-
lue addition.
India is one of the major producers of
premium and finest quality saffron in
the world. Iran is the largest producer,
followed by Spain. Indias saffron pro-
duction is around 10 tonnes. It is cur-
rently the costliest spice fetching aro-
und `. 3 lakh a kg The Codex Committee
on Spices and Culinary Herbs has initi-
ated the development of Codex stan-
dard for saffron at its 3rd session held in
Chennai in February 2017, Spices Bo-
ard chairman A Jayathilak said. The
saffron trade would get a fillip by add-
ressing the issue of post-harvest mana-
gement to retain the colour, aroma and
flavour of the spice, he added.
No Country for Uniform Gain in Dairy Products Post GST
Switch to GST from varying VAT at different regions of the country makes ghee a mixed bag for dairy cos
Ashish.Kulshrestha
@timesgroup.com
Hyderabad: Indian dairies are
staring at a mixed business during
the upcoming festive season follo-
wing the rollout of the uniform
Goods and Services Tax (GST)
across the country, which now ma-
kes certain products relatively ex-
pensive in the North and cheaper
in the South.
Ghee, which is a major product
sold during festivities, had attrac-
ted a 5% value-added tax (VAT) ear-
lier in the North as against a 14.5%
VAT charged in the South. Post
GST rollout, ghee now attracts 12%
tax uniformly across the country,
making Southern dairies gain
marginally up to 2.5% and Nort-
Housing Inventory Drops to
Jio Pipped Top
10-quarter Low on DeMo, Rera 3 Telcos in June
Kailash Babar & Sobia Khan
Mumbai | Bengaluru: In the
backdrop of demonetisation and
implementation of the Real Esta-
te (Regulation and Development)
Act, 2016, residential real estate
is finally tuning itself to end-
user driven demand than pure
investment. The second quarter
of 2017 marked a record low for
units launched across India,
while sales continued to outdo
new units being built in a quar-
ter for the sixth consecutive qu-
arter. This has resulted in the qu-
arter witnessing the countrys
residential inventory overhang
dipping to a 10-quarter low, sho-
wed data from Anarock Property
Consultants.
Over 20,000 new units were
launched across Indias top se-
ven cities during the quarter en-
ded June, while the correspon-
ding number was slightly higher
at over 26,000 units in the first qu-
arter of 2017. With the traditio-
nal cash flows previously seen in
a residential projects lifecycle
not working out under the cur-
rent policy framework, develo-
pers have now changed their bu-
siness models altogether. As a re-
sult of the changing market dy-
namics and business models,
developers have been going slow
on new project launches compa-
red to previous years, said Anuj
Puri, chairman - Anarock Pro-
perty Consultants.
This trend is expected to conti-
hern dairies suffer an additional
tax burden of some 7%.
According to industry represen-
tatives and analysts, ghee is the se-
cond-largest commodity product
with a 15% share in the diary sector
after liquid milk, which accounts
for a 65% share. Further, nearly a
third of the annual ghee sales is re-
ported during the festive season.
The changed scenario post GST rol-
lout has compelled some dairies to
resort to increasing selling prices
of ghee to cover up increased taxes,
others decided to prune down their
marketing budgets during festive
season. Kuldeep Saluja, MD of Ster-
ling Agro, which sells dairy pro-
ducts under the Nova brand in the
Northern markets, said: The in-
crease of 7% in taxes on ghee due to
GST has been a big setback to the
Housing Realty
UNITS LAUNCHED ACROSS
INDIAS TOP SEVEN CITIES
20,000
Quarter
ended June
26,000
Q1
2017
ANUJ PURI
Chairman, Anarock Property Consultants
As a result of the changing market dynamics
and business models, developers have been
going slow on new project launches compared
to previous years
nue as the industry gears up for
further consolidation, and more
clarity on Rera implementation
across states emerges. Accor-
ding to Puri, the market is seeing
clear evidence that players are
now adapting themselves to an
end-user driven demand reality.
A corresponding fall in unsold
inventory was also recorded
business as sales have been impac-
ted despite partial passing on the
price burden while also taking a hit
on our margins. And we expect this
impact to continue during the up-
coming festive se-
ason.
Changed tax
Some analysts
burden
said dairies in the
scenario post
North, which are
GST compelled
mainly into com-
some dairies to
modities or B2B
increase
segment, are lik-
selling prices
ely to face the
of ghee to
pressure on mar-
cover up
gins owing to in-
increased
creased tax on
taxes
ghee. Also, there
will be a slight impact on the retail
side as well with moderate price in-
creases. We will be reducing our
marketing budget accordingly du-
In 2008, it was the global
financial crisis that
caused developers to
curtail supply due to
reduced demand
At present, builders
themselves are bringing
down the inventory
overhang by reducing
new units launches
Indian realty markets are
maturing with the evolv-
ing supply-demand reali-
ties and the improved
policy framework
This bodes well for the
industry, especially for
homebuyers
with the number of unsold resi-
dential units falling to around 4.2
lakh after 30 months. The last ti-
me Indias inventory overhang
was close to this figure was in the
fourth quarter of 2014, when it
was slightly above 4 lakh.
All pre-launches have stopped
and now the projects are being
launched only after securing
ring the festive season to counter
any impact of increase in taxation
on ghee and other value-added pro-
ducts, said Devendra Shah, chair-
man and managing director of
Mumbai-based Parag Milk Foods.
Dairies in the South like Herita-
ge Foods and Hatsun Agro expect
the impact to be either neutral or
marginally positive. RG Chandra-
mogan, CMD, Hatsun Agro, said:
We are expecting a neutral im-
pact of GST on ghee sales as there
will be a slight reduction in taxes,
coupled with lower milk prices
during the festive season due to
higher production.
M Sambasiva Rao, the president
of Hyderabad-based Heritage Fo-
ods, echoed similar views on the
positive impact of GST rollout.
Impact of GST on the dairy in-
approvals. Developers now pre-
fer launching projects in phases,
in step with approvals. Apart
from Rera, multiple factors have
impacted permissions, inclu-
ding dumping ground, naval
land, height restrictions and co-
astal regulatory zone issues, sa-
id Subodh Runwal, director,
Runwal Group.
However, Runwal said that the
scenario is proving out to be posi-
tive for absorption as indicated
by over 100 apartments sold by
the company in its freedom offer
launch at three projects in north
Mumbai over the last 10 days.
Inventory levels are expected to
come down further as developers
rush to register projects under
Rera in states that have imple-
mented it.
Developers operating in states
which have not yet finalised the-
ir Rera rules continue to await
further clarity, experts said.
Even at Prestige Group we have
held ourselves back. Till the law
becomes operational, till we un-
derstand whats happening, and
once we get all the approvals,
then register with Rera and go
ahead (with the launches). We
will start with a clean slate bo-
ard, said Irfan Razack, CMD,
Prestige Group.
So I believe, give it a quarter,
let this quarter July to Septem-
ber go by. From beginning of Oc-
tober things will be very diffe-
rent. There will be lot more clari-
ty, lot more stability, and more po-
sitivity than negativity.
https://telegram.me/PDF4EXAMS
THE ECONOMIC TIMES | BENGALURU | THURSDAY | 17 AUGUST 2017
dustry is expected to be neutral to
positive in general, says Shiva
Mudgil, senior analyst, Rabo-
bank, adding that GST would furt-
her push formalisation of the sec-
tor at the expense of informal
cash-dominated business chan-
nels, benefiting the organised seg-
ment. This will also impact the
B2B trade business model of dairy
commodity companies which reli-
es on cash transactions e.g. for
ghee. B2C branded ghee segment
may see slight retail price increa-
se for products like ghee in North
India due to GST. At present, In-
dia is the worlds largest producer
of milk, accounting for nearly a
fifth of global milk production, fol-
lowed by the US, China, Pakistan
and Brazil, says a report by broke-
rage firm Antique.
Kalyan.Parbat@timesgroup.com
Kolkata: Reliance Jio Infocomm
added as many as 4.3 million acti-
ve subscribers in June, stealing a
march over the three biggest in-
cumbent telecom operators
Bharti Airtel, Vodafone India
and Idea Cellular, whose combi-
ned numbers during the month
stood at a modest 1.3 million, said
analysts.
The active subscriber net adds
of top three operators slowed
down to 1.3 million in June com-
pared to their 5.1 million net adds
average in the past six months,
ICICI Securities said, analysing
subscriber data for June put out
by the Telecom Regulatory Aut-
hority of India (Trai). Jios 4.3
million active subscriber addi-
tions, according to visitor loca-
tion register (VLR) data in June,
was well below the 8.7 million ac-
tive customer adds clocked in
May, indicating a slowing, which
the company previously attribu-
ted to the limited 4G devices in
the market. The VLR is a key met-
ric reflecting the actual number
of subscribers actively using mo-
bile services on a network.
The companys active subscri-
ber base grew to 93 million in Ju-
ne, helping the Mukesh Ambani-
run telco steadily increase its ac-
tive subscriber market share by
40 basis points (0.4 percentage po-
ints) to 9.1% from 8.7% in May.
By contrast, market leader
Bharti Airtels month-on-month
Churning Prices
Ghee - Largest dairy commodity
Nearly a third of annual ghee
sales are reported during festive
season in India
INDIA SHARE
Ghee 15%
Milk 65%
VAT ON GHEE EARLIER
5% 14.5%
North South
POST GST
12% - Tax on ghee across the country
07% - Additional tax burden on
dairies in North
2.5% - Marginal fall in tax in South
JIOS REACH
Citi Research said Jios
proportion of active
subscribers remained
higher in category B
and C circles than the
metros or A circles
gain was a modest 3 bps in active
subscriber market share in June,
while Vodafone India and Idea
lost 9 bps and 2 bps on this metric
respectively.
Brokerage Citi Research said
Jios proportion of active sub-
scribers remained higher in ca-
tegory B and C circles than the
metros or A circles.
Analysts at ICICI Securities
backed Citis view, saying Jios
active user base in crucial met-
ros and Category A circles was
only 67.9% and 75% of its total
subscribers respectively.
Jios active subscribers in Del-
hi, Mumbai and Andhra Pra-
desh, it said, accounted for 67%,
68% and 75% of its total custo-
mers in these markets respecti-
vely. Its share of active subscri-
bers in Maharashtra circle, ho-
wever, was higher at 85%.
Not surprisingly, VLR data col-
lated by Trai showed that about
76% of Jios users are active sub-
scribers, compared to 97% for the
three biggest incumbent telcos.
 https://telegram.me/TheHindu_Zone https://telegram.me/PDF4EXAMS

WWW.ECONOMICTIMES.COM
Economy: Macro, Micro & More  15

CERT-In Sets August 28 Deadline Valued at about `. 2,800 cr

From Page 1
Handset makers did not individu-
ally comment on the development
as most said they hadnt received
the notice. Sources at most compa-
nies including Apple and Samsung
said they wont have a problem sha-
ring how privacy is protected.
Theres a need to ensure safety
and security of mobile phones or
smartphone... that hold valuable in-
formation of users as they use the
phone to make digital payments
and have personal data, the mini-
stry official said. Cases of contact
lists and text messages being leaked
have surfaced internationally and
locally, while there were concerns
about data on remote servers. A
number of companies selling pho-
nes in India are Chinese and most of
their servers are not in India.
Another official added that since
the security issue is not addressed
in the existing voluntary stan-
dards, the government will know if
standards need to be tightened or
made mandatory.
The government officials didnt
directly link the government move
to Indias latest border tensions
with China, but industry insiders
noted the move comes amid conti-
nuing standoff between the two na-
tions armies at Dokalam. This, be-
sides rising concern over imports
of IT and telecom products from
the neighbouring country on the
grounds that much of it may be
used to gain unlawful access to cri-
tical information with many Chi-
nese manufacturers having their
servers in their home country.
Parts of India have also witnessed
anti-China protests, with some cal-
ling for boycott of Chinese pro-
ducts including smartphones.
For the financial year ended
March, mobile phones worth about
$3.74 billion (.`23,754 crore) were
imported into India as per govern-
ment data, while phones worth Rs
90,000 crore were made locally. Abo-
ut 54% of the Indian smartphone
market has been cornered by Chi-
nese companies including Xiaomi,
Lenovo, Oppo and Vivo, and several
others like Comio and Voto are ma-
king their way to the fastest-gro-
wing smartphone market in the
world. As per a re-
cent Confedera-
An official tion of Indian In-
said that dustry study, Chi-
testing and nese investment in
verification the electronics and
of devices information tech-
will be nology products
conducted in sector is worth ne-
India arly $22 billion.
A crackdown co-
uld seriously dampen the prospect
of Chinese smartphone players
that heavily skin (read change in-
ternally from the base upwards)
Android to differentiate, said Rus-
habh Doshi, an analyst at Singapo-
re-based Canalys said.
He added that if the government
plans swift action on unsuitable
software, it could impact business.
Vendors may need to roll out qu-
ick security updates to ensure devi-
ces remain suitable to use.
In an August 14 letter, the govern-
ments Indian Computer Emergen-
cy Response Team (CERT-In) gave
the companies until August 28 to
provide the information. This has
to cover the handset, the operating
system, browser on the device and
pre-loaded apps.
The official said that testing and
verification of devices will be con-
ducted in India and the govern-
ment was upgrading its existing la-
boratory facilities for this, adding
that media reports about data leaks
led to the move, without naming
specific instances or companies.
The official said smartphones pla-
yed a vital role in the governments
Digital India programme, having
achieved 65-75% penetration and
that people place their trust in the
convenience and productivity offe-
red by these devices.
From Page 1
It has raised more than $100 mil-
lion in equity and debt financing
from the likes of global private
equity major Warburg Pincus
and stage-agnostic investment
firm SAIF Partners.
The company was valued at abo-
ut `. 2,800 crore, or $440 million,
when it closed its previous fun-
ding round in November.
It is unclear whether SoftBank
will invest in Rivigo from its ba-
lance sheet or its much-vaunted
$100-billion technology-focused
Vision Fund.
Rivigo, founded by McKinsey
alumni Garg and Gazal Kalra in
2014, is not only the largest buyer
of trucks in India but has also
launched a slew of technology
products over the past year. The
company is also benefitting from
the rollout in July of the goods
and services tax that got rid of sta-
te levies, making transportation
by trucks smoother.
Even traditional logistics com-
panies are poised to benefit from
the rollout of GST. And Rivigo, gi-
ven its strong focus on tech, is se-
en more as a solutions provider
rather than as just a service provi-
der, said Sanjeev Krishan, lea-
der-private equity and transac-
tion services, PwC India.
Rivigo introduced the relay mo-
del to the trucking sector so that a
driver would not be at the wheel
for more than 4.5 hours. At desig-
nated points, he would hand over
the truck to another driver and
steer a different vehicle back to
where he came from. This model
allows truck drivers, who are ty-
pically on the road for days and
weeks, to go back home every day.
Rivigo scaled up to 2,100 trucks in
March with more than 4,000 dri-
vers.
According to the company, it was
the largest buyer of trucks in 2015
and 2016, having raised debt finan-
ce of about `. 400 crore from len-
ders including Kotak Mahindra
Bank, HDFC Bank, YES Bank and
ICICI Bank.
The market for logistics-techno-
logy businesses, which includes
delivery startups, truck aggrega-
tors and warehousing firms, is ex-
pected to surge to $9.6 billion by
2020 from $1.4 billion in 2015, ac-
cording to a report by investment
bank Avendus Capital.

CONSUMER CONNECT INITIATIVE

Season for gifts

WITH THE FESTIVAL SEASON UPON US, HERE ARE SOME COOL IDEAS TO STRENGTHEN BONDS
Leena.Mudbidri@timesgroup.com
Elegant stationery complete with a
markers too can look ele- room to some relaxing times in the of-
gantly appealing placed fice.
next to a classic tome An ancient Domino game in a beauti-
with titles written ful brass-legged wood box can add
in gold. Since more moments from history.
ivory is not en- An executive wood golf set makes the
couraged, best reward for recognition. These nifty,
page mark- portable golf putting sets come in a rich
ers in san- rose wood casing with a brass handle and
dalwood have a collapsible putter and golf balls.
with an- Pair this with a sleek miniature golf bar set
cient en- in a leather golf bag complete with bottle
ered from across the world, or of gravings opener, ice hammer, stirrers and so on, in

Getty Images
custom writing surface can offer the mother-of-pearl, look stylish on can be won- the shape of golf clubs.
orporate gifting is a culture that best in smooth, comfortable writing. an executive table. These globes derful sub- Desk games can keep stress away

C has stood the test of time, unlike

the ups and troughs of the busi-
ness world. As the festival season
What better way to say 'thank you' than
through a personal signature embossed
on the writing instru-
makes its presence felt, here are some ments?
cool ideas to get that all-important Miniature
stamp of approval on a job globes made
aptly dress up an office cabin with
an old-world charm and a little bit
of history. These elegant globes
stitutes. and have the boss in good spirits. Puz-
zles are great ways to de-stress before
a crucial corporate meet.
come in several different display Bespoke accessories add a distinct Gifting is an art and the right corpo-
options from hanging and desk touch of class to your gifting repertoire. rate gifts can reinforce a
stand to a Renaissance model. business commitment.

Getty Images
well done. from gem- And what's an old writing table HELP THEM BEAT STRESS
stones gath- without a traditional dip ink pen? Ele- A silver-plated mini roulette game
es

SIGNATURE gantly carved dip ink pens in sterling engraved with your compa-
Getty Imag

COLLECTIONS silver inlaid with gems and sporting ny logo or a person-

A top executive deserves large feathers at the top can be ab- al inscription is
nothing less than desk- solutely alluring. Nibs can be disman- sure to enter-
top accessories in hand- tled and come in various sizes and in- tain your
finished hardwood. From scriptions. A sterling silver ink well filled corporate
desk pads, paper trays, book ges with real ink can look classic. associate. A
Ima
etty
or binder racks and wastepaper G Ornamental letter-openers in copper chess board
baskets to pencil cups, card files or silver can either be stand-alone in fine quality
and floor mats, the warmth of hard- pieces or complementary to the silver-plated
wood provides lasting luxury. other stationery items. Page finish can give
 https://telegram.me/TheHindu_Zone
16 THE ECONOMIC TIMES The Edit Page
Slash IUC, Licence
and Spectrum Fees
Ease the tax burden on the telecom sector
The telecom regulators proposal to bring down the Inter-
connect Usage Charge (IUC) promises to both increase
bad blood in the telecom sector and worsen its finances.
The government must intervene to protect the consumer
and the sectors viability. IUC is the charge that an opera-
tor, in whose network a call originates, pays the operator
in whose network the call terminates, for the service of
receiving the call from the originating network and car-
rying it on to the called party. As compared to the old 2G
days, the network usage per call is lower now when calls
are converted into discrete packets that are sent over the
network interspersed with packets of other calls and as-
sorted data. This is the rationale for trimming IUC.
However, the cost of the network has gone up because
of higher spectrum costs. A lower IUC would lower the
cost of a call for the consumer, who, ultimately, bears the
cost of the call. However, it would lower revenue for tel-
cos. Now, for large networks such as Bharti and Vodafo-
ne, what one pays the other as IUC gets
more or less offset by what it receives
from it as IUC, since they have rough-
ly the same number of subscribers.
Smaller networks pay out more as IUC
to larger networks than what they re-
ceive as IUC. Apart from the decline in
network usage due to packetisation of
calls, two factors favour lower IUC. One, voice accounts
for an ever-declining share of telecom revenue globally
and net IUC receipts form a tiny fraction of this dwind-
ling part of the business. Two, high IUC is anti-competiti-
ve, favouring incumbents against new entrants.
Telecom finances in the country have turned parlous
with the aggressive entry of Reliance Jio and the govern-
ments insistence on high spectrum fees, extracted by
auctioning tiny chunks of spectrum. To prevent telco lo-
ans from adding to the banks growing mountain of bad
debt, the government must intervene. It can lower the
steep revenue shares it collects as licence and spectrum
usage fees, still pegged at the high rates set when spec-
trum was allotted along with the licence without separa-
te upfront payment.
Bad Politics Behind
Endless Project Delays
In his Independence Day speech, Prime Minister Narendra
Modi cited the example of a railway line between Howrah and
Champdanga in Bengal. It was decided in 1975 to put in broad-
gauge tracks in this 74-km stretch. Part of the project was
completed the rest has been stuck for 42 years. Modi said his
monthly reviews of projects have speeded up investment,
completion and commissioning of new projects. It is welcome
that some projects are getting completed in this fashion. Mere
monitoring will not, however, help others get built.
Delays in executing projects do not really highlight the failu-
re of Indians to strategically plan, manage and execute new
projects. What it does underline, however, is the trait of over-
ambitious politicians to allocate projects
to suit particular constituencies, with
scant regard about whether it is possible
to execute them all in time. An over-sup-
ply of announcements tends to spread re-
sources like capital, manpower and ma-
nagerial skills too thin on the ground for
any one project. Delay follows. The soluti-
on is for politicians to refrain from throwing confetti-showers
of projects, which are much more than the capacity of the pub-
lic or private sector to execute, to impress voters.
Data from the Centre for Monitoring the Indian Economy
(CMIE) shows that the value of projects completed every quar-
ter peaked in March 2016, five quarters ago. It has been falling,
on average, since then. The last two quarters, from January to
June 2017, have been especially bad. CMIE cites the lack of in-
vestment appetite and says most projects being finished now
were proposed 10 years ago. The government should try to mi-
tigate financial and other risks associated with investments
to bring animal spirits back to the business of forming and ex-
ecuting new projects.
Which goes to prove that even Bond
should never say never again
Old Bonds Die Hard,
Craig is Back
Back in 2015, the world was a different place. Brexit was still
only a spectre, Bihars mahagathbandhan offered a quantum
of solace to many, if only to die another day. But in 2016, ISIS
made it brutally evident that the world is not enough, the Pa-
nama Papers surfaced to scare the living daylights out of sev-
eral people in crucial posts, and strong suspicions arose that
the US election process had been trumped from Russia with
love. With Kim Jong-un proving to be a thunderball, and the
new man in the White House being likened to a skyfall, it is
not surprising at all that a reluctant Daniel Craig has realis-
ed that never say never again is a good adage for Commander
James Bond to live (and let die) by when on Her Majestys sec-
ret service, and finally admitted that he will use his cinema-
tic licence to kill again, come 2019.
The return of the blond and blue-eyed male super spy might
disappoint those who were hoping for a return to a dark-hair-
ed007 such as Tom Hardy or Henry Cavill or even a Jemi-
ma Bond now that M and Moneypenny have also changed.
Of course, Idris Elba as a Bond of Colour mooted by Ste-
ven Spielberg last year will surely remain a contender the
next time. The question is, what or who will be the villain
this time, as there are many real-life contenders whom Hol-
lywood would find irresistibly inspiring.
At last, India gets genuinely serious about companies flouting mining and environment laws
Behold the Law of the Land
Himangshu Watts
T
he landmark judgement of
the Supreme Court impos-
ing penalties of an estimat-
ed . 25,000 crore on illegal
mining merits serious rea-
ding by the entire corporate sector,
and not just by those who extract mi-
neral wealth.
Two aspects of the verdict stand
out. First, the verdict takes environ-
mental law enforcement by the Centre
and the highest judicial authority to
a new high, which is a very strong de-
terrent against such practices in the
future. This strong message will pro-
tect the environment and clean up the
poisonous air in cities more effective-
ly than some outrageous, controver-
sial and ill-conceived steps taken by
various authorities in recent years.
Second, the court has ordered hea-
vy expenditure for the welfare of tri-
bal people in affected areas. This re-
inforces the GoIs declared strategy
of targeting and extracting ill-gotten
wealth to help the poor, whether by
demonetisation of high-value curre-
ncy notes, or with the goods and ser-
vices tax (GST).
A crucial aspect of the court case
that needs to be highlighted is the
fact that the mines ministry, after Pi-
yush Goyal took charge of its affairs,
dramatically changed the relatively
lenient position that the previous go-
vernment had taken in the matter of
Even if you have a mining lease, extraction without
forest and environment clearance is illegal and the
state must recover outputs value from the defaulter
PERSONAL BANKRUPTCY CODE
Relieve People, Not Just Firms
Hema Ramakrishnan
Many Indians are vulnerable to fin-
ancial distress. The proportion of
people below the poverty line, esti-
mated at 21.9% in 2011-12, are at great-
er risk. Rightly, the bankruptcy code,
meant to resolve corporate distress,
also provides the legal framework
for individuals and partnerships to
swiftly restructure their debts.
Offering relief, not booking debtors,
has been the primary objective of the
earliest insolvency legislation, says
economic historian Asiya Siddiqi in
her book, Bombays People, 1860-98:
Insolvents in the City. Barring indi-
viduals who misuse the loopholes in
financial laws, those with genuine
difficulties need some leeway to re-
organise their loans. Resolution, in
turn, hinges on support through a
robust legal system.
Would it be prudent, then, to enfor-
ce the code for personal bankruptcy
after upgrading the legal infrastruc-
ture in terms of reach, strength and
sensitivity to diverse needs?
In 1860, following the crash of the
booming cotton trade in Bombay,
many filed insolvency petitions and
sought protection from the Bombay
High Court. Siddiqis research rev-
eals that 85% of the 20,980-odd petiti-
oners who filed for bankruptcy bet-
FUNNY BUSINESS
Our Other Independence Day
Anuvab Pal
Indias economy has come a long way
in 70 years. During the famous liber-
alisation speech, Manmohan Singh
famously quoted Victor Hugo when
he said that no power on earth can
stop an idea whose time has come.
Interestingly, the time had come
because we were in a financial cri-
sis, requesting the IMF to bail us out
because of some stupendously fan-
tastic economic policies that ensur-
ed that we were isolated from the
world economy.
And now, we had to free the econo-
my or be left without any money.
Many argued that the British had
found a rich country and left it poor.
So, it took special care and main-
tenance by our economic decision-
makers to keep us poor for an addi-
tional 45 years.
companies violating green laws app-
licable to the sector. In doing this, GoI
showed its determination to resist
strong pressures.
Conventionally, mining was deem-
ed illegal only if ores were extracted
without a mining lease. Under the mi-
ning law, the penalty was equal to the
entire output from such an operation.
However, once the lease was obtain-
ed, even if the mining operation rava-
ged forests, made the air unbreathab-
le and degraded the environment to
make thousands of crores, the penal-
ty under the environment law was a
laughable . 50,000. This built a very
strong business case to start mining
without waiting for green clearances.
The government argued before the
Supreme Court in January that ex-
tracting minerals without the neces-
sary green clearance should be deem-
ed illegal not just under the environ-
mental law but also under the mining
law that imposes back-breaking pen-
alties for default. The Supreme Court
has upheld this view.
Its Mine, Not Yours
This means that even if you have a
mining lease, any extraction with-
out forest and environment clearan-
ce is illegal and the state must recov-
er the value of the entire output from
the defaulter.
Further, the court has ordered
that the hefty penalty must be used
very transparently for the develop-
ment of tribal areas where the mines
are located. It has ordered that the
very large amounts that will flow
to Odisha after the verdict must be
kept in a special purpose vehicle
(SPV). To ensure that the funds are
used for the benefits of tribal people
in affected areas, it has asked the sta-
tes chief secretary to file an affidavit
ween 1860 and 1898 got protection.
Its also a reflection that the judicial
system was sensitive in the early
colonial period.
Later, two laws were enacted: the
Presidency Towns Insolvency Act,
1909 (for the three presidencies of
Madras, Calcutta and Bombay), and
the Provincial Insolvency Act, 1920
(for all other areas). But they were
seldom put to test due to delays in
clearance of cases in the courts.
Indisputably, reform in personal
bankruptcy laws is long overdue. In
2009, the Raghuram Rajan panel on
financial sector reforms recommen-
ded a framework within which deb-
ts can be renegotiated if excessively
onerous, without making it too easy
for debtors to escape obligations.
Such a framework should recognise
that many debt claims may be from
informal sources, that the most in-
debted may be very poor and need
financial advice as much as debt
rescheduling.
Six years later, the Bankruptcy Law
Reforms Committee drafted the new
code that will replace the two old laws
for personal bankruptcy. But the rul-
es are yet to be framed. Unlike com-
panies, straightjacket rules to deal
with personal bankruptcy may not
work, given the heterogeneous natu-
re of our population and the varying
job prospects among states. The In-
solvency and Bankruptcy Board of
India the regulator to oversee in-
solvency proceedings has been
pragmatic to go for a phased appro-
ach in rule-making.
The bankruptcy code allows an am-
nesty for individuals with debts up
After that, as the licence raj inspec-
tors had feared, the economy went
out of control into the hands of these
private sector entrepreneurs, and
nonsense things like efficiency and
customer satisfaction and free mar-
ket competition took over.
Today, as India boasts of one of the
highest GDP growth rates in the wor-
ld, and global funds still eye us even
key. Two things simultaneously
FILE PHOTO
Two things Manmohan killed
FILE PHOTO
This time, we just may be really saved
stating the work done and audited ac-
counts of the SPV.
For those who think they can ma-
ke millions without caring for the en-
vironment, the court did not mince
words. It delivered the message in the
first paragraph of the judgement,
Lessees in Odisha have rapaciou-
sly mined iron ore and manganese
ore, apparently destroyed the envi-
ronment and forests and perhaps
caused untold misery to the tribals
in the area. Some steps taken to help
the local people, the court said, seem-
ed not more than a drop in the ocean
also too little, too late.
The stern words from the highest
judicial authority in the country are
a breath of fresh air in the otherwise
polluted approach toward green is-
sues some authorities have demonst-
rated in recent years.
On top of the hall of shame is the
Delhi governments ill-conceived odd-
even scheme that banned half the
FILE PHOTO
No flight of fancy
to . 35,000. This is similar to the US
bankruptcy code that offers a debt
waiver for those with incomes below
the median. The idea is to free an in-
dividual from her previous chain of
debts, giving her a chance to start
earning again, and safeguard her
fundamental dignity.
But the code cannot resolve the root
cause of financial distress. GoI must
fix structural problems in, say, agri-
culture to ensure that incomes of far-
mers rise and they dont fall into a
debt trap. This will obviate the need
for farm loan waivers that hurt cred-
it discipline. The policy focus should
also be to bring the unbanked section
of the population under the formal
banking network and foster a heal-
thy credit culture.
In the US, more than a million peo-
ple are reported to file for bankrupt-
cy protection every year. Its robust
though we have a myriad problems,
let us not forget to look back fondly
when our economy, through socialist
years, was compared to Chad and
Sudan. Many observers note 1991as
the year Indias economic chains
were broken. But at what cost?
Let us take a minute to remember
five economic freedom fighters who
died so India today could have the
PVRs, the Apples, the Hondas, the
malls, the McDonalds that our child-
ren so take for granted.
 The Ambassador car: It took a cle-
ar bullet in its heart, the day foreign
cars came in. A superb vehicle that
was a car but could also be a home
and looked like a caravan for a hobo.
Spare parts were available at any paan
shop or with any relative who had a
hammer, some nails and some oil.
When air-conditioning was instal-
led, the car stalled. Which makes
sense. As yoga practitioners will
agree, concentration on one thing is
ally processing what Ive just written.
could be confusing.
 Public sector banks: ATMs today
are so mechanised, clinical. You go,
you take money, you leave. Pre-econ-
omic independence, you went into a
https://telegram.me/PDF4EXAMS
THE ECONOMIC TIMES | BENGALURU | THURSDAY | 17 AUGUST 2017
cars in the city on alternate days, but
had no problems with smoky and no-
isy diesel generators or smoke-spew-
ing, overloaded trucks.
Then there was the ban on 10-year-
old diesel cars, which were sold in full
compliance of the prevailing emis-
sion norms and a declaration to cus-
tomers that these cars will be legally
allowed for 15 years. It didnt matter
to the authorities that a newer car
that is not properly maintained will
pollute the air much more. Or that
the actual emission is more impor-
tant than the age.
The problem with such steps is
that it creates mass public ill-will tow-
ards the noble cause of environmen-
tal protection simply because some
authority has caused severe hardsh-
ip with steps that scientists know wo-
uldnt clean the air. Such orders actu-
ally damage the environment becau-
se they make it difficult for political
authorities to protect the environ-
ment when the common man thinks
he is being short-changed.
Green and Bear It
In contrast, the Supreme Courts la-
test verdict on mining, and GoIs sub-
mission early this year, is a concrete
step that will help the environment,
even as some mining companies ha-
ve genuine grievances.
The mining industry fears the ver-
dict will disrupt business and that
some mines may shut down. There
are some legitimate grouses. It takes
ages to get environmental clearan-
ces. Often, land is not available for
compensatory afforestation. At tim-
es, clearances are not renewed even
if there is no change in mining ope-
rations or output.
Legitimate concerns must be add-
ressed. But for the crooks who ra-
vage the environment, the message
from the Supreme Court and the go-
vernment is clear: if abiding by the
law means shutting down your busi-
ness, so be it.
himangshu.watts@timesgroup.com
legal infrastructure helps in speedy
resolution. That will be a challenge
in India. Since, under the code, a debt
recovery tribunal (DRT) will need to
pass orders be it for a fresh start
or restructuring of the loan, after an
insolvency professional does all the
necessary spadework.
Now, DRTs deal only with cases of
loan recovery of banks and financi-
al institutions, while the insolvency
jurisdiction extends to all creditors.
Its infrastructure is woefully inade-
quate to handle the extra load. There
are only 38 DRTs and five debt Reco-
very Appellate Tribunals in India.
A debtor living in a remote part of
a state will have to travel to the state
capital and the DRT will have to com-
plete the process within the rigid
timelines. Unless an adequate num-
ber of DRTs are set up with support
staff and infrastructure, the objecti-
ve of the insolvency and bankruptcy
code may not be achieved.
DRTs must also have more powers to
recover dues. More benches need to
be set up, remuneration of members
of DRTs raised and recovery officers
trained. The number of appeals aga-
inst DRT rulings can be limited by
making appeals more expensive.
So, GoI should not be in a hurry to
enforce the personal bankruptcy
code. An out-of-court settlement cou-
ld well be the best way for individuals
to renegotiate onerous debts. The
setting up of the Financial Ombuds-
mans office to offer financial advice
and counselling is an idea whose
time has come.
hema.ramakrishnan@timesgroup.com
bank for a basic banking function,
took a token, and there was a good
chance youd never leave the branch
for the rest of your life. You grew old
there, married there, died there.
Some argued it was slow but no one
could deny it was personal. You knew
every person and waited with them.
 Vayudoot: Rumoured to be an air-
line the government started, some
said it was a bird. No one was ever
sure. And no one had actually flown
it, though some said the airline
covered massive distances like the
top of Nariman Point to the end of
Nariman Point.
 Campa Cola and Gold Spot: Best
ever as well as Made in India soft dri-
nks. Inspired by foreign soft drinks.
 TV news: No one was shouting. No
matter how scary or insane the news.
They read it like a checklist and the
government picked who read the
news based on lack of emotion. Tod-
ays generation has no way of ment-
Things need to go for new things to
be born. Let us take a second to ack-
nowledge the great contribution of
the five things above to become what
weve become.
Love Unites
All of Us
MATA AMRITANANDAMAYI
Today, even young children
seem to be in a hurry. The
extended families of the past
are like a dream today. We live
in world that believes, Money
is everything. Without money,
life is a big zero! People every-
where are rushing to make
money. This mania for money
making is the reason behind
the disappearance of extended
families and the love and unity
that were integral to such fam-
ilies. Without doubt, money is
necessary, but it shouldnt be-
come the central point of life.
Love must always remain the
central point of life. This
change is especially necessary
in todays harried world.
In the old days, there used to
be joint families in which 10-12
families lived together. There
would be 50 or even more
members in such families. If
something bad happened to
any one of them, all the others
would help, without thinking
about whether the person was
ones younger brother, broth-
er-in-law, sister-in-law or aunt.
The hearts of all members
would beat for each member of
the family. The eyes of all
would see and shed tears for
everyone. The ears of each
would listen to everyone. And
the hands of each person
would labour for all.
You asked if expansive love is
practical. One would have to
concede that this is not possib-
le for everyone. Let us first lea-
rn to regard with love our own
parents, relatives and friends,
the beggar who comes for alms
to our doorstep, and our own
county and its samskara
(cultural values). If we can do
so sincerely, expansiveness
will arise of its own accord.
Chat Room
Communalism
Hits Growth
Apropos the Edit, The Right
Notes From the Red Fort (Aug
16), PM Narendra Modi deliv-
ered an emphatic speech on
the gains from demonetisati-
on, electrification and on Ka-
shmir, but he stopped short of
strongly denouncing the rig-
ht-wing elements in his party.
Communal tensions needs to
be brought down if gains of
growth are not to be frittered
away. Nobody doubts the PMs
intentions, and deliverance on
promises will be a major fact-
or in evaluating his govern-
ments performance. Hopeful-
ly, the short-term disruption
from demonetisation will be
offset by tangible gains soon.
ASHOK GOSWAMI
Chennai
Be Patient With
the Patient
This refers to the Edit, Heal-
thcare Systems Absent Ac-
countability (Aug 16). What it
mentions as dedication is
singularly missing from our
hospitals, particularly those
that are government-run. Pa-
tients need sensitivity, sup-
port and willing care from the
staff as much as hospitals
need funds.
This was not
the strong
point of the
staff at the
Gorakhpur
hospital. As
long as pati-
ents are treat-
ed as bed numbers rather than
as human beings, no funding
will change the system.
Y G CHOUKSEY
Pune
ATMs Only as
Cash Cows
Apropos ATMs Face Their
Walkman Moment by Pratik
Bhakta (Aug 16), digitisation
apart, there are other reasons
for the potential demise of the
ATMs. One is dysfunctional
ATMs with the perennial Out
of Order boards. The other is
the commission charge and
taxes that one needs to pay on
ATM transactions beyond a
certain threshold, which has
driven customers towards
crowded branch counters.
ATMs provide a valuable 247
service and it will be good not
to see them evolve further.
SUNDER G
Navi Mumbai
Letters to the editor may be addressed to
editet@timesgroup.com
 https://telegram.me/TheHindu_Zone
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Johannesburg: Zimbabwes first
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Philippine Police Kills 32 in
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Manila: Philippine police killed
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Bogota: President Juan Manuel
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CONTRAPUNTO The hottest place in Hell is reserved for those who
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Trump Ends Business Councils
as CEOs Turn Against President
Makes the announcement on Twitter, less than an hour after one of the
groups was said to be planning to inform the WH that it would disband
Wa sh i ng ton : Donald T rump
said hes disbanding two advisory
groups of American business lead-
ers, after CEOs quit this week as the
president faced blowback for failing
to sufficiently condemn white su-
premacists.
Trump made the announcement
on Twitter, less than an hour af-
ter one of the groups was said to
be planning to inform the White
House that it would disband.
Rather than putting pressure on the
business people of the Manufacturing
Council & Strategy & Policy Forum,
I am ending both. Thank you all!
Trump said on Twitter.
His remarks were a reversal of
what he said a day before, when he
tweeted that he had plenty of CEOs
who wanted to be on the panels to
replace those who quit, and called
the CEOs who left grandstanders.
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Trump Again Blames Both Sides for Violence
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race relations and his own leadership
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from Republicans and Democrats
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sure to explicitly condemn the Ku
Klux Klan, neo-Nazi and white su-
premacist groups.
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belonged on both sides.
You had a group on one side that
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Towns, cities and states throughout
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ing lost! Trump said in the tweet.
Trumps reference to great dam-
YOUR DAILY DIET OF FUN AND FACTS
according to a per-son familiar
with the matter, who wasnt author-
ised to discuss the news publicly.
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dent. Several CEOs from a manu-
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Mourners attend a memorial service inside the Paramount Theater for
car attack victim Heather Heyer in Charlottesville
reporters turned tense.
Not all of those people were neo-
Nazis, believe me. Not all of those
people were white supremacists
by any stretch, Trump said of the
participants in the deadly protest.
There was a group on this side. You
can call them the left ... that came
violently attacking the other group.
So you can say what you want, but
age echoes chatter in
Washington and academ-
ic circles that Amazon
and other technology com-
panies may have become
too big and powerful.
Apple Inc, Alphabet Inc,
Microsoft Corp, Facebook
Inc and Amazon are the
biggest companies in the Jeff Bezos
world by market cap and
dominate many facets of everyday have such problems, Trump said in
life. Some critics have even suggested February 2016.
that they should be broken up.
During the presidential campaign, Whole Foods Market Inc. Experts
While more than half a dozen CEOs
have quit a manufacturing CEO
group, others have said they wanted to
stay on the panels in order to influence
White House policy. The manufactur-
ing council hasnt met since February.
The CEOs of Under Armour, Intel,
Merck quit earlier this week. And on
Wednesday, Inge Thulin, CEO of 3M
left, as did Campbell Soup CEO Denise
Morrison. Bloomberg
thats the way it is.
Democrats seized on Trumps lat-
est words as evidence that Trump
saw white nationalists and those
protesting against them as morally
equivalent.
By saying he is not taking sides,
Donald Trump clearly is, said
Democratic Senate leader Chuck
Schumer of New York. Reuters
Trump claimed Amazon
was a monopoly that he
would go after for anti-
trust violations if he were
elected. Amazon takes
about 70% of all e-book
sales and 30% of all US
e-commerce. Believe
me, if I become presi-
dent, do they have prob-
lems. Theyre going to
In June, Amazon agreed to buy
Around the World  17
Trump Praises Kim
Jong Un for Backing
Down on Guam Threat
Washington: US President Don-
ald Trump on Wednesday
praised North Korean leader
Kim Jong Un for a wise deci-
sion not to fire missiles towards
the US territory of Guam and for
easing escalating tension be-
tween the two countries.
Reclusive North Korea has made
no secret of its plan to develop a
missile capable of firing a nuclear
warhead at the US to counter
what it perceives as constant US
threats of invasion, and tension
has been rising for months.
Trump warned North Korea
last week it would face fire
and fury if it threatened the
United States, prompting North
Korea to say it was considering
test-firing missiles towards the
Pacific island of Guam. Kim
Jong Un of North Korea made a
very wise and well reasoned
decision, Trump wrote on
Twitter. Reuters
Barack Obama Breaks
Twitter Record With
Charlottesville Tweet
Washington: A tweet by former
president Barack Obama about
the violence in Charlottesville
has become the most liked
message in the history of Twit-
ter, the company said on
Wednesday.
The tweet by the countrys
first black president quoted
Nelson Mandela. No one is
born hating another person be-
cause of the colour of his skin
or his background or his reli-
gion, Obama tweeted on Sun-
day, following deadly clashes in
the Virginia city between neo-
Nazi sympathizers and counter-
protesters.
As of 1300 GMT Wednesday,
Obamas message had been
liked 3.2 million times, and re-
tweeted 1.3 million times. AFP
and analysts have largely dismissed
antitrust threats for the worlds larg-
est online retailer, though a US law-
maker has called for hearings on the
proposed deal to consider its ramifica-
tions for shoppers and workers.
While its unclear what prompted
Trumps tweet, The Washington
Post ran a scathing editorial about
Trump in the paper on Wednesday,
and there were also pro-tax reform
advertisements that ran on early
morning talk shows. Amazons
shares fell less than 1% to $975.19 at
10:18 a.m. in New York. Bloomberg
Crossword
   
https://telegram.me/PDF4EXAMS
Britain Seeks Brexit
Without Borders for
Northern Ireland
London: Britain has said there
should be no border posts or
immigration checks between
Ireland and the British province
of Northern Ireland after Brexit,
in a paper that attempts to resolve
one of the most complex aspects of
its departure from the EU.
Some 30,000 people cross the
500-km border every day without
customs or immigration controls;
negotiators must work out new
arrangements without inflaming
tensions in a region that suffered
decades of bloody turmoil before a
peace deal in 1998.
As part of a series of papers that
Prime Minister Theresa May
hopes will push forward talks
with the EU, the government on
Tuesday outlined its vision for a
frictionless customs system,
which drew criticism from some
in Brussels.
Wednesdays publication drew
heavily on those proposals as a
solution for Northern Ireland that
would not involve physical border
infrastructure and border posts.
The paper provides flexible and
imaginative ideas and demon-
strates our desire to find a practical
solution that recognises the unique
economic, social and cultural
Mashable Hires Bankers to
Study Options Including Sale
Los Angeles: Mashable Inc is ex-
ploring strategic options includ-
ing the sale of all or part of the
online media company, according
to people with knowledge of the
matter.
Mashable, founded in 2005,
may draw interest from buyers
in Europe and the US, said one of
the people, who asked not to be
identified discussing private in-
formation. The company said on
Tuesday it hired LionTree Advi-
sors LLC months ago to seek
June Cyberattack Will Cost
Up To $300 Million: Maersk
Copenhagen: AP Moller-Maersk
A/S said a cyberattack that hit
the owner of the worlds biggest
container shipping company
at the end of June will wipe as
much as $300 million off profits
in the third quarter.
The announcement was made
in connection with
second-quarter earn-
ings, which showed
Maersk missed ana-
lyst estimates after
taking a writedown
at the tankers unit
thats part of the en-
ergy business man-
agement has said it wants to get
rid of.
In an interview with
Bloomberg Television, Chief
Executive Officer Soren Skou
said the industry outlook was
bright, despite the disruptions
of cyberattacks and writedowns.
Management at the Danish com-
pany sees very healthy funda-
   
context of the land border with
Ireland, without creating any new
obstacles to trade within the UK,
Northern Ireland minister James
Brokenshire said. The government
said reaching an agreement with
the EU that there should be no
border infrastructure was top of
Britains list of priorities.
May also said Britain would con-
sider stepping in to replace some
EU funding for peace projects in
Northern Ireland after it leaves
the bloc in March 2019, to prevent
a resurgence of violence between
pro -British Protestants and
Catholic Irish nationalists.
Commenting on an advance
briefing of the position paper,
the Irish government said it was
timely and helpful and that it
hoped enough progress could be
made to move talks forward. Reuters
more capital and isnt in conver-
sations about a sale.
Pete Cashmore, who founded
the media company at age 19 in
Aberdeen, Scotland, held talks to
sell Mashable to CNN about five
years ago. The publisher offers
European companies a foothold
in new, online media popular
with younger audiences. US com-
panies are already well en-
trenched in this area. Time Warn-
er Inc is one of Mashables major
investors and led a $15 million
funding in March 2016. Bloomberg
mentals for container shipping,
Skou told Bloombergs Matt
Miller and Guy Johnson.
Frode Morkedal, the manag-
ing director of Clarksons Platou
Securities, said the report was
slightly on the negative side,
but we find solace in their posi-
tive market comments, in a
note to clients. Of
the 31 Maersk ana-
ly s t s t r a c k e d b y
Bloomberg, 15 are
telling investors to
buy the stock, 12 sug-
gest holding on to it,
and four say clients
are better off selling.
David Kerstens, an equity ana-
lyst at Jefferies, said the fact that
Maersk Line reported its first
profit in five quarters shows
that fundamentals in container
shipping continue to improve,
according to a note. Kerstens is
among analysts advising clients
to buy. Clarksons has a neutral
rating on the share. Bloomberg
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detected in the early hours on Tuesday. The message was difficult to decipher Helios and Matheson Analytics Inc, a small,
from the photo made available by the park service, but the government agency publicly traded data firm in New York. The
said it appears to state [expletive] law. More indecipherable writing in silver companies declined to comment on terms of
spray paint was discovered on a Smithsonian museum map on Constitution the financing but said MoviePass intends to
Avenue, which runs along the Mall. Crews are using a special, mild gel-type paint hold an initial public offering by March. Helios
stripper to clean up the monument to the 16th US president, which towers over and Metheson shares rose 5.7% to $2.95 at
one end of the US capitals National Mall, the service said. AFP the close Tuesday in New York. Bloomberg
 https://telegram.me/TheHindu_Zone https://telegram.me/PDF4EXAMS

18  Deep Dive Corporate/Finance THE ECONOMIC TIMES | BENGALURU | THURSDAY | 17 AUGUST 2017

NEED FOR SPEED

Why Tata Sons chairman N Chandrasekaran has reversed a clutch of the turnaround initiatives by Tata Motors expat CEO Guenter Butschek
Lijee Philip, Kala Vijayraghavan Guenter Butschek N Chandrasekaran
and Ketan Thakkar Getty Images Getty Images

A
fter the sudden demise of Karl
Slym in early 2014, 15 months af-
ter he was appointed Tata Motors
chief executive, Cyrus Mistry
had to fill the breach. The then
chairman of Tata Sons also embarked on
a search for a new CEO, an exercise that
would take him almost two years. Guenter
Butschek appeared to be just the honcho
the Indian car and truck maker needed
he had the domain experience (he worked
at Daimler AG for 25 years); had spent
time in foreign markets such as China
and Europe and had the experience for a
corporate transformation, something Tata
Motors badly needed.
So, when Butschek took over in mid-Feb-
ruary last year, he quickly got down to ex-
ecuting the various prongs of his game
plan going for growth with more prod-
ucts and faster launches; becoming more
customer-focused and cutting costs ruth-
lessly, including those of manpower.
From April 1, 2017, Butschek set in mo-
tion a new organisational structure, get-
ting rid of 14 management levels; now
there would be only five. In early June,
Tata Motors decided to do away with des-
ignations for its over-10,000 workforce.
The objective was to create a flat organisa-
tion. There is going to be a delayering
processThe leader has to take tough
calls, Butschek told ET in February.
Meanwhile, plenty was, of course, hap-
pening at Tata Sons, the holding company
of the diversified conglomerate. Mistry
had been forced out, Ratan Tata came in as
interim chairman and, early this year, N
Chandrasekaran was appointed Tata
Sons chairman. It didnt take him too long
to hunker down at the beleaguered au-
tomaker, whose net profits (excluding
Jaguar-Land Rover) had plunged 96% in
the December 2016 quarter.
The legacy of Tata Motors has always
been the kind of mind space it took from
every Tata Sons chairman from Ratan
Tata to Cyrus Mistry and now Chandra,
says a top Tata official, seeking anonymity
A month into taking over, Chandra had
made Tata Motors his top priority. In its
recently released annual report to share-
holders, the group chairman voices his
concern. Turning around the domestic
business of the company is the need of
the hour as it has suffered from delays in
new product launches, lack of adequate
response to competition and an unsus-
tainable cost structure, Chandra wrote.
A little over a year and half since
Butschek stepped into Tata Motors cor-
ner room, the group chairman has thrown
down the gauntlet at the Tata Motors
CEO of 19 months. Two people in the
know say the chairman thought Butschek
was more focused on organisational re-
structuring and turning around the pas-
senger vehicle business than on the com-
mercial vehicle (CV) business.
CVs account for 60% of Tata Motors
standalone revenues and over 60-80% of
profits; it is a market leader with a share
of 42.79% at the end of fiscal 2017, al-
though that figure is down from a high of
almost 57.8% six years ago.
Butscheks role, say those aware of
boardroom developments, was also ques-
tioned, along with that of head of CVs
Ravindra Pisharody, on the management
of inflated stock of BS III vehicles. Tata
Motors, they say, seemed unprepared for
adequate supply of BS IV stock once the
regulation for tighter emission norms
was enforced from April 1. Pisharody put
in his papers in early June.
Butschek has had some huge challeng-
es along the way, like the sudden pulling
forward of BS IV norms (for commercial
vehicles), which was hard to predict,
says Hormazd Sorabjee, editor, Autocar
India. The earlier deadline set for BS IV
was March 31 to produce; sale was expect-
ed to be allowed in subsequent months but
the Supreme Court banned it beyond
March 31. This led to unsold stock of over
`2,400 crore at the company. Sorabjee,
though, reckons Butschek is the right
man to set things right. He understands
what is right for the business. Its not easy
turning around Tata Motors but hes got
the capacity to take the bull by the horns.
Tata Motors closed the year ended
March 2017 with a loss of `2,480 crore.
CV volumes inched up by only 0.8%,
compared with the broader industry
growth of 4%, a performance Butschek
admitted in the annual report was not
a hallmark of a leader.
PRIORITY CHECK
Ever since Tata Motors became Chandras
top priority, the executive committee has
begun reviewing its turnaround execu-
tion plan on a monthly basis; earlier, it
was done every quarter. Whats more, in
areas such as sales and market share,
daily reviews are underway.
Chandra is now working closely with
Butschek and Tata Motors senior manage-
ment, overseeing strategy the topmost
priority being to get CVs back on track.
Focus areas include advancing product
launches, visiting top dealers to instil con-
fidence in the new product portfolio and
aligning production with demand. A war-
room concept has been set up at the sales
office in the Mumbai suburb of Andheri
on recommendation of consultancy firm
Accenture. Performance is tracked here
from region to region daily by the head of
Done, Undone
XJune: Did away with
designations for over 10,000
workforce
XCurrent status: No
designations policy has been
reversed as it was felt employee
morale was being affected
XFebruary: Launched the
TaMo sub-brand to develop
aspirational and next-gen
vehicles with a proposed
investment of `250 crore
XCurrent status: Project has
been temporarily shelved,
keeping costs in mind
XMarch: Proposed partnership
with the VW Group for sharing
vehicle platforms, engines and
production facilities
XCurrent status: Discussions
for the partnership have been
put on hold
sales and the regional sales team, a person
close to the development said.
If Chandra is calling significant shots at
Tata Motors, hes also rolling back a few
of Butscheks turnaround initiatives.
Recently, for instance, the company re-
versed the no designations policy to re-
duce hierarchies, as it was felt this had
impacted employee morale.
Another Butschek initiative thats be-
come a casualty of cost-cutting and sharp-
er CV focus is the TaMo sub-brand. TaMo,
set up as a division, had the mandate to
develop aspirational and next-gen vehi-
cles outside the main Tata portfolio. An
investment of `250 crore was reportedly
required for this project and the top brass
may have felt this isnt quite the time for
such investments.
Then, a few days ago, Tata Motors and
Volkswagen group firm Skoda Auto ended
discussions around a potential partner-
ship for sharing vehicle platforms, en-
gines and production facilities. For Tata
Motors, with its bleeding passenger vehi-
cle business, and the VW Group, which is
rebooting its emerging markets strategy
in the aftermath of dieselgate, the pro-
posed partnership was seen as ideal to
become relevant in the highly competi-
tive and fast growing Indian car market
and cut production and development cost.
Clearly, Chandra wants a turnaround, in
a way he thinks is right. So where does
that leave Butschek?
Subodh Bhargava, an independent di-
rector on the Tata Motors board till mid-
2017, says, Butscheks leadership has
been good for Tata Motors. He is a turna-
round artist and has clearly demonstrat-
ed that in his previous assignments. Tata
Motors has been in need of a transforma-
tion for several years. Butschek is doing
now what should have been done earlier.
Bhargava points out that turnaround
plans for Tata Motors have been in the
works for the past three to four years. The
biggest problem with Tata Motors, he
reckons, is the legacy of its cost struc-
ture, especially manpower, which is com-
pletely out of sync with current volumes
and technology . The company also had to
deal with leadership gaps due to depar-
ture of two CEOs (Slym and Carl Peter
Forster before that). Ratan Tata and then
Mistry had to step in. With the new chair-
man, there is operational stability and
Chandra has clearly said it is his no. 1 pri-
ority to get Tata Motors back to health. In
any company, the role of a chairman is to
empower the CEO and Guenter seems to
be doing a great job and Chandra should
be happy, adds Bhargava.
Tata Motors is currently going through
a turnaround phase, with a strong focus
on improving the bottom line by rigorous
cost reduction and sales enhancement,
leveraging our superior range of new
products, a Tata Motors spokesperson
told ET on the internal communication
COMETH THE HOUR
Butschek is a
turnaround artist Tata
Motors has been in
need of transformation
for several years and
Butschek is doing now
what should have been
done earlier
SUBODH BHARGAVA
Former independent director
at Tata Motors
from the MD. Our product plans are also
being periodically reviewed, based on the
dynamic business situation.
Butschek, who will complete two years
at Tata Motors helm next February, may
have little time to show results.
Unconfirmed reports suggest his annual
compensation, `22.55 crore in FY17, may
be linked to turnaround parameters such
as cost-cutting targets. A Tata Motors
spokesperson says, Tata Motors, like any
other company in the group, is perfor-
mance-driven and compensation for all
employees is based on performance.
Meanwhile, Tata Motors is in discussion
with the ministry of external affairs re-
garding compensation for its German
MD. The issue whether a foreign CEO
of a loss-making company is entitled to
his entire compensation. The companys
application to ensure the CEO gets his
entire compensation is with the gov-
ernment. Talks are going smoothly and
the application is under active considera-
tion, adds the Tata Motors spokesperson.
At the time of writing, the Tata Motors
spokesperson told ET Butschek would
meet the media on August 21 a day
ahead of the annual general meeting to
share details of the turnaround strategy
and a new corporate brand identity. At the
AGM, Chandra and Butschek will have to
be ready for a barrage of questions from
investors on the way ahead.

SoftBank, Hard Bargains

Making sense of the Japanese
mega investors $6.5-billion India bet, over
half which has been pumped into two of
Indias biggest digital plays
Shelley Singh
Vijay Shekhar Sharma may not be ex-
aggerating when he says Masayoshi
Son, founder of the SoftBank Group,
is the worlds biggest dealmaker. solar, in partnership with Foxconn
The founder of digital payments and
ecommerce brand Paytm, who first
met Son in December 2016, is trying
to put into perspective SoftBanks
$1.4-billion investment in his com-
pany, which sent Paytms valuation
soaring to $7 billion.
Its not difficult to do. Not when,
less than three months later,
SoftBank once again loosened its
purse strings to pour $2.4 billion into
Flipkart; this takes its total invest-
ment in the countrys ecommerce
play to close to $6 billion. The latest
investment round announced last
week has got Flipkarts valuation
back to $15 billion, after a series of
downgrades by global funds, which
hammered it to below $10 billion.
The Flipkart mega investment
comes close on the heels of failed at-
tempts to merge online marketplace
Snapdeal with Flipkart, with the
formers founders exiting from dis-
cussions ostensibly over valuation.
Son, who had invested $627 million
in Snapdeal in October 2014, said,
I respect the founders decision.
Snapdeal chose to move forward as
a standalone entity.
For SoftBank, Flipkart and Paytm
mark the start of a big investment
push (after former SoftBank presi-
dent Nikesh Aroras exit in June
2016). Son is known for his multi-
billion dollar bets around the world.
He does after all have a $93 billion
fund to dig into the SoftBank
Vision Fund, the worlds largest
tech fund, with investors that in-
clude Apple Inc, Qualcomm and the
Public Investment Fund of Saudi
Arabia. That may explain a recent
$1.1 billion investment in pharma
firm Roivant, and a $4 billion buy
into US chipmaker Nvidia in May.
Son is a technology visionary. He
doesnt waste time in understand-
ing the business model, but wants to
know more about technology, adds
Sharma. SoftBank plans to invest at
least $10 billion in India, about 65%
of which has already been deployed
(It also plans to invest around $20
billion in non-digital ventures like
ogy investor with a proven track
and Bharti Enterprises). Unlike
most funds, which have time frames
ranging between three and seven
year, SoftBank is a late-stage, long-
term player, with a time horizon
anywhere from 15 to 25 years.
Son, for his part, is known to think
even longer-term. For instance, in
an interview with CNN Money in
December 2016, he talked about a
300-year plan to break down lan-
guage barriers globally and allow
people to communicate telepathi-
cally. He also has a goal to create
technologies that could allow
people to live two centuries!
In June 2010, the SoftBank
chairman & CEO made a
133-slide deck shareholder
presentation. One of the slides
carried this line: Look into the
far distance, whenever you get
lost, alluding to the long term.
Son has a business plan drawn
Vijay Shekhar
Sharma
for SoftBank that will outlive him,
says a Delhi entrepreneur.
Son may not have to wait that long
for his India bets to pay off al-
though all of them will surely not
hit pay dirt, even if one or two do,
SoftBank will be in clover (See The
SoftBank India Portfolio).
Its not as if Son looks at each in-
vestment in isolation. SoftBank
bets on macro trends, says the
India head of an internet giant on
condition of anonymity. Thats why
he is the most successful technol-
record of more than two decades.
Cle a rly, t he eye -p oppi n g
Flipkart investment has not
been made with an eye on im-
mediate returns. An analyst who
requested not to be identified ex-
plains, Current gross merchan-
dise volume of ecommerce in India
is $15 billion, which is expected to
grow to $50 billion by 2020 and $200
billion by 2030. By then if Flipkart,
in which SoftBank has made
its single largest invest-
ment so far, has a 30-35%
market share,
it will
be a $60-70 billion business.
Son, who founded SoftBank along
with two part-time workers in 1981,
has had a penchant for reading
macro trends and betting on com-
panies that can build scale around
those trends. Back in Y2K, he bet on
the then unknown e-commerce and
payments company Alibaba. A 28%
SoftBank is no stranger to early-
stake bought for a mere $200 million
back then was worth a whopping
$60 billion when the Chinese ecom-
merce giant listed on the New York
Stock Exchange in 2014, the biggest
IPO in the exchanges history.
SoftBank was also an early investor
in Yahoo Japan from which he made a
fortune. Hes had his share of duds, too.
For instance, during the dot com bub-
ble bust at the turn of the century, he
reportedly lost more than $50 billion.
HICCUPS IN INDIA PORTFOLIO
stage investing in Indian startups.
Back in 2000, as an anchor investor
alongside News Corp in eVentures
India, it had funded MakeMyTrip
and Netmagic before the VC fund
shut shop. Of its more recent early-
stage investments, some havent
shown much promise as yet, includ-
ing Housing and Snapdeal.
SoftBank India reported a loss
of $1.4 billion in its annual filing
in March, largely on ac-
count of investments in
Snapdeal and Ola.
H a r i s h N V,
p a r t ner,
Masayoshi Son
Binny Bansal
Grant Thornton, an advisory and
consulting firm, says, India needs
a large investor like SoftBank to help
develop the market. For an investor
in a startup ecosystem all bets will
never pay off. Growth is always chop-
py. Indian internet businesses have
barely scratched the surface. Theres
plenty of headroom for growth.
More than half the Indian popula-
tion is not yet online and less than
a fifth of the online population has
experienced digital benefits like
payments and shopping. Besides,
Indian internet businesses have just
a handful of unicorns, and SoftBank
has invested in more than half of
themFlipkart, Paytm, Ola and
InMobi. Number of unicorns will
at least double in the next five years
and there will be more opportunities
for a late stage fund like SoftBank,
says head of a digital venture who
wished not to be named.
The expanding presence of a
fund like SoftBank boosts the
startup ecosystem in India. Says
Niren Shah, managing director at
Norwest Venture Partners India:
SoftBanks focus on the Indian e-
commerce space is very positive. It
will be able to provide growth capi-
tal to internet companies.
Agrees Sreedhar Prasad, part-
ner and ecommerce lead, KPMG
India: Presence of large interna-
tional players is a big boost to and
validation of the ecosystem in
India. Education, fintech, logis-
tics are areas where we could
see the next set of unicorns. In
the next five years, India could
Sachin
Bansal
produce more unicorns than in the
last five years.
Analysts believe the Indian inter-
net businesses are different from
what they were two years back when
they were chasing growth without
an eye on unit economics. Investors
dont want to throw money just to
help startups acquire customers,
but to create profitable businesses.
As macro trends point to grow-
ing adoption of technology-driven
economic growth, Son would have
achieved his other objective. He
looks at number of people he can im-
pact with his investment. Where else
(other than China) can you get that
but in India now and in the near fu-
ture, adds Sharma of Paytm. In that
sense, Flipkart or Ola or Paytm could
be Sons Alibabas in India. Any bets?
(Additional reporting
by Kunal Talgeri)
The SoftBank India Portfolio
Company No. of deals Amount invested
($ million)
Flipkart 1 2400
Paytm 1 1400
Ola 4 587.84
EdCast 1 NA
InMobi 1 200
Snapdeal 3 743.29
Grofers 1 120
Housing 3 88.36
Oyo 2 NA
Total invested: Approx. $5.5 billion*
* Excludes investments in solar and
other non-digital businesses
Source: NewsCorp VCCircle
RED CARPET
India needs a large
investor like SoftBank
to help develop the
market... Theres
plenty of headroom
for growth
Harish NV
Partner, Grant Thornton
SoftBanks focus on
Indian ecommerce is
very positive. It will
be able to provide
growth capital to
internet cos
Niren Shah
Managing director, Norwest
Venture Partners India
 https://telegram.me/TheHindu_Zone
WWW.ECONOMICTIMES.COM
17 TECH TIPS TO HELP LARGE & PROUD
SOLVE COMMON ISSUES
Some common
complaints never
seem to go away:
issues with
transfer & backup
of contacts, doing
more with PDF
files and keeping
your data privacy
intact. Karan Bajaj
offers some quick
advice to keep
these issues in
check
HandlingContacts
Deleted or lost contacts is a
common issue. The reason
could be anything ranging from
a damaged or lost smartphone
to an accidental data wipe.
Contacts can be automatically
synced with your Gmail account,
so the latest backup will always be
available if you enable this. For
iOS users, if you have added your
Gmail contacts and switched on
Contacts sync, your iPhone and
Gmail contact will also auto sync
 To be on the safer side, you can
export your entire phonebook as
an editable CSV file and then keep
it as a backup in Google Drive or
any other cloud storage
 To manage your contacts, you
can edit it on your phone or in
Google contacts and it will be
updated everywhere. Google
contacts also gives you the option
to find and merge duplicates from
its web interface
 Another way to test the microSD
If you want to make bulk
changes to your contact
database, you can export the
entire phonebook as an Excel
sheet. Once you are done editing,
you can either choose to remove
all data from Google contacts and
then import the edited file or
you can import the edited file
first and then choose to find and
merge duplicates
ITS ALL ABOUT
THE DIALS
Ricoh Pentax KP
SPECIFICATIONS
24MP APS-C CMOS sensor, Prime IV
image processor, 27 AF points, 3-inch
tilting display, optical viewfinder,
7fps continuous shooting speed, RAW
support, customisable buttons, full
HD video recording, microphone
port, WiFi, 703 grams (body only)
Karan.Bajaj@timesgroup.com
Pentax is not a brand that usu-
ally comes to mind when you
think of DSLRs in India.
However, Pentax has some ex-
cellent offerings and the latest
in their catalogue is the
Pentax KP a mid-size
DSLR aimed at enthusiasts.
The first thing that im-
pressed us on the Pentax
KP is its compact size it
appears smaller than an
average DSLR from Canon
or Nikon. Second thing
that immediately comes to
notice are the number of
dials and controls that
Pentax KP offers. There are
three dedicated dials for ad-
justing various parameters
as per the selected mode,
three customizable buttons, a
function dial and a drive mode
dial with 5 custom user modes.
You ll also get a dedicated
switch to switch between live
view, viewfinder and video
mode, another switch for choos-
ing between manual or autofo-
cus, a button to change AF mode
and a button for AF/AE lock. All
this makes the Pentax KP a de-
light for users who want maxi-
mum control at their fingertips.
The button and dial placement
is not random either every-
thing is meticulously placed for
quick access.
Pentax KP features a magnesi-
um alloy body with weather seal-
ing which makes it great for use
in any condition. The downside
of weather sealing is that the
camera is bulky to carry at 703
grams even though it does not ap-
pear bulky. One feature we loved
on the Pentax KP is the option of
interchangeable grips we do
hope that Pentax offers the dif-
ferent size grips in India. On the
back is a 3-inch tilting display
which is handy for shooting
however we did not like the thick
bezels surround the screen. The
Wiping The
Phone Securely
What do you do with your old
phone? Many will give it to a
friend/relative or exchange/
sell it. But how do you make
sure your personal data is not
accessible to anyone else?
 While giving away the phone,
standard practice is to do a
factory reset from the settings
page. Most of us do not realize
is that even after a factory
reset, your data can be
recovered from the smartphone
 To prevent data recovery
after you have done a factory
reset, copy random dummy data
on your phone (random large
video files, photos etc.) this
will over-write the storage of
your phone. Now do a factory
reset again anyone trying to
extract data from the phone will
only be able to get the random
dummy data your last stored
Another way is the use the
iShredder app (Free, Android
only) that securely wipes all data
on your smartphone with
military grade security
 If you have a microSD card
installed on the phone, we
recommend that you remove it
from the phone before giving it
away to protect your data
PRICE `88,584
Compact, individual (one-touch) controls for
almost everything, excellent image quality, 3
customisable buttons, tilting screen, weather
sealed body
Heavy to carry around, no GPS, no 4k video
recording, no direct HDMI connector,
battery life could be better
REVIEW
camera offers an
optical viewfinder
(pentaprism) which is
preferred by a lot of
pro photographers.
Image quality from the
Pentax KP is top notch but you
need to tweak some settings for
better results. We found that in-
creasing the sharpening levels
resulted in better photos over-
all. What we loved most on this
DSLR is that even at high ISO
levels, noise was
For those minimal thanks
who like to the noise re-
to have duction algo-
maximum r i t h m u s e d by
control on Pentax. We were
fingertips, shooting at ISO
the Pentax 1 2 8 0 0 a n d s aw
KP is ideal minimal noise
images were good
enough to print in 4 x 6 size. It
was at ISO 25600 that we noise
was visible in the images
they were still good enough to
be shared online though. Video
recording quality was also
great, but the fact that there is
no 4k video recording was a let-
Identify Fake SD Cards
While its easy to identify fake
smartphones from the software,
its not as easy with storage
cards. Fakes have flooded the
market and there are chances
you will end up with a fake card
not just online but also from
your local store
The first thing to do is check the
official MRP label on the packaging.
Genuine products have an MRL label
with details including contact
information of the company in the
country, warranty information,
importer month and year as well as
contact details of the importer
You can use a free app called SD
Insight from the Play Store to get
details about your microSD card.
Install the card, run the app and it
will show you the brand name,
model number, capacity, and
manufacturing date of the card. If it
shows unknown brand or incorrect
capacity, its probably a fake card
card is by checking data transfer
speeds. A free app called A1 SD
Bench lets you run speed tests on
the card and lets you compare
results online to identify differences
If a deal seems too good to be
true, it probably is! A 200GB
microSD card for `999? Thats a
fake. Know the prices of storage and
you can avoid being scammed
SPOTLIGHT
couple of cameras: an 8MP f2.2 wide angle primary camera
down.
Some of the things we did not
like on the Pentax KP include
lack of built-in GPS, inconsist-
ent autofocus lock (tends to lose
focus lock at times depending
on subject movement) and the
fact that there is no direct
HDMI-out for connection.
One issue is with its battery life.
With capturing stills and video, the
battery ran out of charge after
around 300 images and 20 minutes
of video. DSLRs that cost this much
should offer a minimum of 500
shots on a single charge. That being
said, if you want to have maximum
control on their DSLR, do check out
the Pentax KP. In the same price
range, you can also consider the
Canon EOS 80D that offers similar
features and performance but
doesnt have the plethora of con-
trols that the Pentax has.
https://telegram.me/PDF4EXAMS
Gadgets & You Powered By ET Panache 19
Gionee A1 Plus
Hitesh.Bhagat@timesgroup.com
It seems like 2017 is the year of
dual camera smartphones
Gionee is not one to be left be- PRICE `26,999 REVIEW
hind and this is the result. This
phone gets the Plus suffix be- SPECIFICATIONS
cause everything about it is 6-inch IPS (1920 x 1080 pixels), octa core Mediatek Helio P25,
large: large screen, chunky de- 4GB RAM, 64GB storage (expandable up to 256GB, hybrid SIM
sign, big battery and heavy hit- slot), 13 + 5MP dual rear camera, 20MP front camera with LED
ters in the camera department. flash, WiFi n, Bluetooth 4.0, USB Type-C, fingerprint scanner,
In fact, unlike some of the 4,550mAh battery, 226 grams
phones that only concentrate
on the front or rear camera, the
A1 Plus asks, why not have Large & heavy, small battery
both? (considering overall thickness
Once you get around the huge & weight), video recording
size and weight of the device, limited to 1080p, fingerprint
youll see the vertically stacked scanner is slow at times, no
dual camera system at the OIS for camera, overbearing
back. Theres also a large circu- Amigo OS (Android skin),
lar depression which you might expensive considering the
think is a fingerprint scanner, competition
but in reality its just the
Gionee logo. The fingerprint Latest Android,
scanner is up front, under the good dual
camera system, all-
screen and built into the home
button. In front, theres no metal build quality,
fast charging
branding and the massive
6-inch screen takes up most of support (quick
the space. We were expecting
the bezels to be a bit thinner,
charger included)
especially considering the the multiple picture modes. large your eyes. Video record-
Managing PDF Files price. The screen is pleasing to Apart from the usual auto and ing is good quality but limited
look at: the 1080p resolution is pro (manual mode), there is to 1080p resolution. Given the
Your email inbox is full of PDF files good enough and the colours, night, panorama, time lapse, price of the phone, some of the
your phone bills, utility payment viewing angles and contrast slow motion, smart scene, text biggest failings of the camera
receipts, bank statements or your are all spot on. recognition (it can convert an include the absence of optical
work related documents. While you Gionee skins its phones with image of text into editable image stabilization (felt dur-
can easily view these files using a Amigo OS while it is the lat- text), GIF, PicNote (intelligent ing low light and video) and
reader (Adobe, Foxit Reader), or est Android 7.0, the interface is cropping), scanner (for QR/ the limited video resolution.
overbearing (it does things dif- bar codes), business card scan- Performance from the Helio
even a browser, editing PDFs is
ferently including putting ner, mood photo, translation P25 is good enough for gaming,
where most people run into issues
quick settings at the bottom (live translation from one lan- apps and multimedia. The 4GB
 Editing requires a PDF editor and a settings area accessed by guage to another, needs data) RAM takes care of multi-task-
swiping up from the bottom) and beauty. And obviously, ing duties. Performance would
software most desktop editor
and there are many pre-loaded thanks to the dual camera, be comparable to a flagship
apps are expensive to purchase but games and apps. We counted 17 there is a portrait mode. You from last year. Battery life is
there are free online options. Try
pre-loaded apps, though most can adjust the depth of field good: up to 2 days with normal
www.sejda.com, www.pdfescape.
of them can be uninstalled if (bokeh effect) from f16 all the use. It also supports quick
com, www.pdfpro.co, www.pdf2go.
you dont need them. We found way up to f1.2. In the very wide charge and can share a bit of
com and www.smallpdf.com
it strange that the Peel remote aperture settings, it tends to battery with another phone us-
app is pre-loaded despite the look unnatural. Having said ing USB OTG.
 In case you just want to merge phone not having an infrared that, the camera generally of- Now, coming to the price
multiple PDF files, you can head to port. There are fers pleasing this is a bitter pill to swallow.
www.pdfmerge.com
some nice fea- r e s u l t s : i t s Just `1,000 extra will get you
 If your requirement is just
tures though: a
blue light fil-
fast and cap- the OnePlus 3T, one of our fa-
tures good de- vourite phones from 2016-17.
annotation and removing pages ter, split screen tail. Maybe you re looking at a
from a PDF document you can use
and a system T h e f r o n t large phone? The Honor 8 Pro
Lumin PDF (www.luminpdf.com) it m a n a g e r camera fares is excellent for `29,990. It has a
works with Google Drive and you
(cache cleaner, well too, with better dual camera, 6GB RAM,
need to sign-up for a free account vir us protec- t h e d i f f u s e 128GB storage, 5.7-inch 2k dis-
tion, data traf- L E D l i g h t play and 4,000mAh battery. If
 Another way to edit PDF files is f i c m o n i t o r, w o r k i n g t o you want to spend less, you
to open them in Microsoft Word power manag- light up those c o u l d c o n s i d e r M i M a x 2 .
word will convert the document for er and the abil- dark selfies. (`16,999). It has a larger bat-
editing but be advised that The A1 Plus has a good dual
ity to free ze camera system and is also If youre into tery, larger screen, slimmer
formatting/layout may not be apps and not the face beau- bezel, is a lot thinner (7.6 vs
well-built. But the price puts
preserved allow back- ty mode, you 9.1mm), has louder speakers
the phone in a difficult spot;
g round data/ the large screen Mi Max 2 is a can do things and an IR port. With the A1
 In case you want to create a pdf resource use).
lot cheaper and the way better like whiten, Plus, youre paying extra for
file from scratch, you can make a MS Coming to the s m o o t h e n the dual rear camera and the
word doc file and save it in PDF Honor 8 Pro is only slightly
camera, the s k i n , s l i m 20MP front camera. Whether
format. Alternatively, you can create more expensive
first thing that d o w n y o u r that much extra is worth it is
one on https://online.sodapdf.com struck us were face and en- for you to decide.
The
Launch Pad
iTel PowerPro Mitashi Curved Smart LED TV
Aimed at the budget segment, Mitashi has
P41
FrontRow
launched two new smart curved LED TVs one
PowePro is the new range
with a 32-inch panel and other with the 39-inch
from iTel focused on
Camera battery life. The P41 is the
first device in the range
panel. Both TVs have a resolution of 1366 x
768 pixels, and 176 degree viewing angle. The
39-inch has a 5,000:1 contrast ratio while the
and it features a massive
5,000mAh battery. Itel
32-inch has 3,000:1. The TVs also have built-
in WiFi for connectivity, USB port and card
claims the battery can
deliver up to 51 hours of talk
reader slot to connect additional peripherals, 2
HDMI ports, Ethernet, coaxial, VGA, composite/
time. It has a 5-inch display
component and dual 8W speakers. The smart
with a resolution of 854 x
features are powered by Android and it
` 5,999 480 pixels and runs Android
gets a dual core
7.0. Hardware includes a
processor, 1GB
1.3Ghz quad core processor,
RAM and 8GB
1GB RAM and 8GB storage. You also get a
internal storage.
5MP rear camera with dual LED flash, 2MP
Both TVs come
front camera, dual SIM slots, expandable
with 3 years
storage(up to 32GB supported), 4G with
warranty and a
VoLTE, WiFi, Bluetooth and GPS. It will be
wall mount kit
available across major retailers in graphite, ` 27,990 included in the
silver grey and champagne colours. onwards
price.
You know how peoples attitude and expression changes when
youre holding a camera? Yeah, these guys Ubiquiti noticed
it too. Thats why they created this unobtrusive, unassuming
Betting Big On Battery
little camera that you can wear around your neck. Its a tad
larger than a typical smartwatch, has a touchscreen and a
with optical image stabilization and a 5MP f2.0 front camera
REVIEW
(the one on the same side as the screen, like smartphones).
With continuous video, the battery is expected to last about Hitesh.Bhagat@timesgroup.com
2 hours. Theres also a story mode it takes
photos every few seconds and compiles
No matter what kind of phone you seek, Nubia N2
battery life has become one of the most
them into a timelapse video it lasts
16 hours in this mode. Its powered by
important features. Some phone makers PRICE `15,999
may be able to put in more efficient hard-
Android which means you can have ware and employ aggressive battery sav- SPECIFICATIONS
all sorts on apps on there and it can ing tactics but in the end, the large bat- 64-bit octa core
also livestream video to your service of tery wins because its an up-front Mediatek MT 6750
choice. You do need to pair it with your indicator of better battery life. Nubia processor, 4GB RAM,
existing smartphone though. The company knows this and has introduced the N2 with 64GB storage
sells it with 2GB RAM/ a 5,000mAh battery. (expandable up to
32GB storage for US$399 Its not only about the battery here 128GB; hybrid SIM
plus shipping. though. This is an attractive phone slot), 5.5-inch amoled
with all-metal build and you can get display (1280 x 720
it in a choice of gold or black. pixels), 13MP f2.2
Theres an OLED screen, 4GB RAM rear camera, 16MP
and 64GB storage which will be f2.0 front camera,
enough for most. You can still ex-
WiFi ac, BT4.0, A-GPS,
pand the memory using the hybrid
USB type-C,
SIM slot. Some of the features in the
fingerprint scanner,
interface include dual instance (two
instances and hence two accounts 5,000mAh battery,
Mighty
of the same apps), edge gestures 180 grams
(you can do things like adjust bright- 720p screen Great battery
Sele Stick ness by swiping up/down, go to
desktop, go back etc), touch ges-
tures, shake gestures, super screenshot,
(should have
had 1080p), no NFC,
not the best value
life, all metal
unibody design, fast
for money fingerprint scanner
There are two kinds of people in this world: those who de- swap the back and menu key and adjust
test selfie sticks with every ounce of their being. And every- screen mode (saturation, hue).
one else! If youre in the latter camp, check out the Mighty The Mediatek hardware inside is enough phones at this price have IPS LCDs. Having
Selfie Stick thats just started funding on Kickstarter. It has to power the phone through most daily ex- said that, the resolution is only 720p while
a very modest goal of US$5,000 and it was close to half that periences. Most of the simple games and many phones will give you 1080p full HD
multimedia run fine but you may run into screens in sun `10k. Its not the best quality
at the time of writing. Its mighty because this stick ex-
some bottlenecks with heavy games. The amoled panel either. Ultimately the choice
tends up to a massive 10 feet! It will still fold down to about
extra RAM on board makes sure that you you make is between amoled and resolu-
26 inches portable enough to be carried in a backpack. dont see any stutters with multitasking. tion (we would choose the latter). If you
It also comes with a Bluetooth remote, hand strap, detach- Weve seen strong camera performance want to consider some options, theres al-
able tripod base (it can stand on its own) and can work with from Nubia phones and the N2 also scores ways the Redmi Note 4 which offers a good
small cameras, smartphones or action cameras like GoPro. high here. Results from the camera are mix of hardware, 1080p screen and battery
The idea is that the extra distance will offer a new perspec- surprising in good light. Even in low light, life. There are some older options that have
tive to your photos and videos. Some may even be fooled if you can take control over the settings, seen a price cut, namely Lenovo Z2 Plus.
into thinking that its a drone point of view. The super early you can get some great results. And finally, the brand new LG Q6 with
bird price is just US$39 and it ships anywhere in the world, As for the display, it is quite surprising to their excellent fullvision display is also
starting November 2017. get an amoled display at this price most priced at just `15,000.
 https://telegram.me/TheHindu_Zone
20 Sports: The Great Games
Rohit Honoured to be Vice-captain
The Mumbaikar, excited about getting back on the field, is ready to play behind-the-scene role
R Kaushik
A
little under two months
back, Rohit Sh a r ma
slipped into his 11th year
in international cricket,
the second active Indian
after Ishant Sharma. As
if in celebration of that accomplish-
ment, the national selectors named
him vice-captain, for the first time,
of the Indian side to do battle in five
ODIs and a lone T20I over the next
three weeks in Sri Lanka.
That the selectors felt the need to
name a vice-captain at all for a bilat-
eral series, when they did not have a
designated deputy to Virat Kohli for
even the Champions Trophy 2017 is a
matter of great interest.
Rohits has been an interesting
journey of what is, and what couldve
been. As a fresh-faced and immensely
gifted 20-year-old, he caught the eye
in his very first year at the top level,
both at the World T20 in South Africa
in 2007 and in the triangular series
in Australia the following February-
March. Even at that early stage, it was
obvious that Rohit was a Test star in
the waiting, only the presence of the
luminaries holding back his eleva-
tion.
His first shot at a Test debut of-
fered itself in February 2010 against
South Africa in Nagpur, with Rahul
5 Transfer Storylines to Track
With the deadline approaching, with less than two weeks to go, clubs are likely to push for what they want
Miguel Delaney
The football season may have finally
opened, but the transfer window still
hasnt closed, and the fact that Premier
League clubs are currently considering
trying to synchronise the two shows just
how problematic that can be. Quite sim-
ply, there are a number of unresolved sto-
rylines and questions that have already
complicated the start of the new campaign
for pretty much every club, but there are a
few that have bigger influence than most
WHAT WILL HAPPEN WITH VAN DIJK?
This was a story that hasnt seen too much
tangible movement in the last two weeks,
but that actually became all the more
important because of some of the calami-
tous defending on show in the Premier
Leagues opening weekend especially
Liverpool and Chelseas. Both of them and
Manchester City want Virgil van Dijk but
only one of those pursuits has so far been
publicly prominent, and that is because
Liverpool have had to apologise for an il-
legal approach. It means that they have
to tread very carefully over what they do
next, even as Van Dijk has put in a trans-
fer request. That makes it likelier he will
eventually move.
WILL COUTINHO AND SANCHEZ STAY WITH
THEIR CURRENT CLUBS?
Two situations that could disproportion-
ately transform the seasons of Liverpool
and Arsenal, so its just as well that both
remain adamant those situations will
simply not change. Both players will stay.
Liverpools Fenway Sports Group owners
are said to be unmoving in their stance,
and are 100% determined to not sell
Coutinho to Barcelona. Arsenal have not
VITALS
Head Knock
Wont Stop
Warners
Bangladesh Tour
Australian vice-captain David
Warner is expected to be fit
for the upcoming Bangladesh
tour after retiring hurt when
he was struck in the neck by
a bouncer during a warm-up
match. The opener was hit by a
Josh Hazelwood delivery in a
chilling blow Tuesday that saw
him drop to his knees and let
go of his bat, with captain Steve
Smith rushing from slips to check
on his deputy. Appearing shaken,
Warner removed his helmet and
immediately walked off the field
leaving his bat behind. Cricket
Australias news site cricket.com.
au said the fiery left-hander had
passed a concussion test and
would be available for the tour
of Bangladesh.
BFCs Johnson to
Miss AFC Cup
Bengaluru FC announced their
25-member squad for the AFC
Cup knockout rounds to play
North Korean side April 25 SC in a
weeks time. The squad has looks
drastically different following
the Indian Super League draft.
The big difference though is
that defensive mainstay John
Johnson is set to miss the rest
of the Blues AFC Cup campaign,
reportedly owing to personal
commitments.
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45467/85
VOLUME 32 No. 218
Dravid recovering from jaw sur-
gery and VVS Laxman nursing a
split webbing, both sustained on
the preceding tour to Bangladesh.
However, Rohit twisted his ankle on
the morning of the Test, throwing
Wriddhiman Saha an unexpected
lifeline. The Mumbaikar had to
wait a further three-and-a-half
years, debuting at Eden Gardens in
November 2013. He made a century
in each of his first two innings, but
in a career typically Rohit Sharma,
those remain his only two tons in 21
Tests.
More out of than in the Test side,
Rohit has found his calling in the
white-ball version. The only man
to have made two ODI double hun-
dreds, Rohit also belongs to a very
select club of batsmen who have
made international centuries in all
three formats. He holds the record
for the highest ODI score, 264.
Successive captains and team
managements have walked extra
mile to accommodate Rohit, the
move to elevate him to the top of the
batting tree in January 2013 open-
ing up new vistas for Indian white-
ball cricket. The runs have flowed
in torrents since, with a consistency
that is staggering. Between January
2013 and now, Rohit has amassed
3,457 runs in 72 ODIs at 54.87; nine
of his 11 tons, and 19 of his 31 fifties
quite seen the Sanchez situation escalate
to the extent that he is put in a transfer re-
quest from his desire to go to Manchester
City, but thats possibly because Arsene
Wenger hasnt shown any sign he will
budge either.
WILL CHELSEA GET THE IMPROVEMENTS THEY
SO BADLY NEED?
Its already the story from the opening
weekend, all the more so because it al-
ready has shades of one of the biggest sto-
ries of the last few years: the champions
collapse of 2015-16. While it remains open
to question whether some of the paral-
lels with that Mourinho season as
Antonio Conte himself put it will ac-
tually lead to the same kind of situation
again, the reality is it will be much more
likely if the Italian doesnt get the players
he needs. The 3-2 defeat to Burnley made
that clear. He simply needs a lot more
depth, and wants at least four players: two
wing-backs, a midfielder, a forward and
ideally another centre-half.
WHAT WILL THE BIG SPANISH CLUBS DO?
Despite what happened with Neymar, the
subsequent stepping up of Barcelonas in-
terest in Coutinho and the ripples it caused
re-emphasised that they remain at the top
of the transfer market food chain, and are
still capable of the biggest waves even
if PSG are now likely to join them there.
Real Madrid meanwhile still want to bring
in Kylian Mbappe or a similar young at-
tacker, and that could yet see Gareth Bale
go despite his repeated assertion that he
wants to stay. And if Barcelonas chase for
Ousmane Dembl fails, an option could
then be Christian Eriksen.
IS A SURPRISE STILL IN STORE?
The irony of a summer that has seen the
Rai
have come in this period.
Rohits ODI and T20I averages of
42.46 and 31.72 far overshadow an
average of 37 in 21 Tests. Three of
his seven Test fifties came in succes-
sive games against New Zealand at
the start of the last home season, but
a thigh injury that necessitated sur-
gery and kept him out of the game for
nearly six months cut short his second
Test coming. He warmed the bench
during all three Tests in Sri Lanka as
India went with the all-round skills
of Hardik Pandya. Rohit doesnt like
talking Test cricket at this moment,
and you can understand why.
However, hes more than happy to
share his emotions at being elevated
to the vice-captaincy. Its a huge hon-
our to be appointed
More out of
than in the
as the vice-captain,
he said at Pallekele
Test side,
International
Rohit has
Cricket Stadium on
found his
W e d n e s d a y. T e n
calling in
years ago, I was only
the white-
thinking of playing
ball version
for India. Being the
vice-captain now feels
real ly, real ly good.
Whenever the opportunity comes, at
the first one-dayer which is on August
20, there will be some sort of role that
Ill need to play and Im looking for-
ward to it. Im not thinking too much
about it, I just want to enjoy the mo-
Premier Leagues money so discussed is Virgil van Dijk (above) Cesc Fabregas
that none of the top clubs are satisfied with
their business yet. All have signings they
want to make, and it is that that could yet
see some late swings, the Robinho-style
late buy that really wows in this window.
Mourinho still wants a forward for United
and, bar Liverpool switching targets in
their pursuit of Naby Keita from Red Bull
Salzburg or Tottenham Hotspur suddenly
breaking out, it is that situation that pos-
sibly holds the greatest potential for a
late eye-catching move. It isnt out of the
question for Chelsea to compensate for the
summer with another big move to keep
Conte happy, but they all have money, and
all have potential to do something unex-
pected. The Independent
THE ECONOMIC TIMES | BENGALURU | THURSDAY | 17 AUGUST 2017
ment as of now. Yes, itll be a good op-
portunity for me to get on to the field.
As weve seen, the last few years have
been really good, we just need to con-
tinue that.
Rohit has plenty of experience of
leading sides out both in domes-
tic cricket and in the IPL, but he was
quick to point out that the IPL experi-
ence wouldnt really help too much, es-
pecially in a vice-captaincy scenario.
Its a different ballgame completely,
he insisted. IPL, and when you come
and play international cricket, its
completely different. But again, the
excitement and the energy level is
the same. So yes, nothing changes too
much. Im the vice-captain here, there
I was the captain, so I was more in
front. Here Ive to play a little behind-
the-scene role. But Ill be very excited
to step on to the field as the vice-cap-
tain of the Indian team.
Still only 30, Rohit has several good
years ahead of him if he can steer clear
of injuries that have plagued him from
time to time. While there might be an
underlying sense of disappointment
that his Test career hasnt hit the high
notes it should have, Rohit is delighted
at the successes he has courted over
the decade. The 10-year landmark and
the first-time vice-captaincy, coming
immediately on the back of each other,
have served to stoke his competitive
juices every further. Wisden India
https://telegram.me/PDF4EXAMS
COA Seeks Removal of
BCCI Top Officials
The Committee of
Administrators (COA) has
sought the removal of BCCI of-
fice-bearers, including acting
president CK Khanna and sec-
retary Amitabh Choudhary,
for non-compliance of Lodha
Panel reforms.
In its fifth Status Report sub-
mitted to the Supreme Court,
the COA has also sought the re-
moval of treasurer Aniruddh
Chaudhry. In a scathing re-
port submitted in the apex
court, the two-member COA
comprising Vinod Rai and
Diana Edulji has asked
that governance, manage-
ment and administration
of the board be handed over
to them along with a profes-
sional group headed by CEO
Rahul Johri till the elections
are held.
In the 26-page report (with
174 pa ge s of a n nex u r e s) ,
the biggest takeaway was
that Khanna, Amitabh and
Aniruddh should be removed
just like former BCCI presi-
dent Anurag Thakur and sec-
retary Ajay Shirke, who were
ousted for failing to ensure
implementation of Lodha re-
forms.
...it is only fair that the cur-
rent office-bearers be treated
in the same manner because
a further period of six months
have elapsed since the said
of f ice -bea rers submit ted
their undertakings and re-
forms mandated by Honble
Court have still not been im-
plemented. It is clear that
current office-bearers are
not in position to make good
on their undertakings and en-
sure that reforms mandated
by this Honble Court is im-
plemented.
The COA also mentioned that
the Supreme Court order on
July 24 was deliberately mis-
construed during the BCCIs
Special General Meeting on
July 26 where office-bearers
asked CEO Rahul Johri, the ad-
ministrative staff and the legal
team to leave the meeting. The
COA also mentioned how the
BCCI treated Supreme Courts
neutral expression of etc to
bring in a series of issues aimed
at unravelling the core of the re-
forms mandated including dis-
qualifications of office-bearers,
constitution of Apex Council,
clear demarcation of functions,
powers, duties and obligations
between pro-
The COA said fessional man-
the Supreme agement and
Court apex council.
order was T he repor t
deliberately a lso st ates
misconstrued that DDCA ad-
during the ministrator,
BCCIs SGM Justice (Retd)
Vikramjit
Sen, also pointed out during
the SGM that BCCI is act-
ing contrary to the Lodha
Committee Report.
The COA also submitted that
apart from issues pertaining
to membership and selection
committees (reducing it from
5 to 3), other issues identified
during the SGM held on July
26 form the fundamental core
of the reforms mandated by
the Supreme Court judgement
of July 18, 2016. PTI