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363.75Ultratech Cement, owned by Aditya Birla Group, acquired a majority stake in India Cement on Sunday (July 28). The deal made headlines and piqued the interest of business analysts as well as consumers. This acquisition marks UltraTech’s expansion in the South market. The deal came right after UltraTech acquired a 23% “non-controlling financial stake” of India Cement. “The promoter group approached us as they wanted to sell their holding in the company, and we found it appropriate to acquire their stake,” UltraTech had said earlier in a statement. <h2>Deal value</h2>The deal is worth around 3,954 crore, with UltraTech Cement buying a 32.72% stake in India Cements at Rs 390 per share from the promoters and their associates. This will require a mandatory open offer at Rs 390 per share. The open offer will take place after getting all the necessary regulatory approvals. Earlier, a report by ET stated that UltraTech might spend about Rs 7,000 crore in total to buy the stake of India Cement chairman N. Srinivasan and to finance the open offer. <h2>Effect on Ultratech’s market and capacity</h2>India Cements facilities can produce a total of 14.45 million tons per year (mtpa) of grey cement, with 12.95 mtpa located in the South (mainly in Tamil Nadu) and 1.5 mtpa in Rajasthan. Meanwhile, UltraTech has 154.86 million tonnes per annum (MTPA) of grey cement. According to a report in Livemint, buying India Cements will increase UltraTech Cement’s capacity by 9 percent and raise its share of the overall market in India by 2 percent. After the acquisition, UltraTech's total capacity is expected to grow to 214 million tons by FY27. This acquisition also puts the firm unquestionably ahead in the <a href="https://www.businessinsider.in/business/news/cementing-dominance-birla-vs-adani-of-chaebols-conglomerates-and-national-champions/articleshow/112170126.cms">race for market domination in the Indian cement sector</a>. While Ultratech has been a market leader for the past several years, the Adani Group’s acquisition of ACC, Abuja Cement, and Penna Cement, had shrunk substantially. In the South, UltraTech’s share of cement capacity is expected to nearly double from about 13 percent to over 25 percent by FY25, according to a report by Emkay Global which was published right after the deal announcement. According to the Business Standard report, Aditya Birla Group Chairman Kumar Mangalam Birla said that the India Cements acquisition is “exciting” because UltraTech will be able to “serve the Southern markets more effectively.” He added that the deal accelerates their path to “200+ million tonnes per annum capacity.” Meanwhile, during the company’s 23rd Annual General Meeting (AGM) in August last year, Birla said that UltraTech was looking forward to achieving 200 million tonnes per annum production capacity and becoming a global cement giant. The acquisition of India Cement seems to be a step towards fulfilling this aim. <h2>Impact on revenue</h2>In FY24, UltraTech’s revenue was 70,908 crore with a growth rate of 12.13%, while India Cements had a revenue of 5,112 crore with a decline of 8.84%. The acquisition is expected to boost revenue growth by increasing production capacity and expanding market reach. Talking about India Cements, investors should watch how the company performs after the acquisition since its previous capacity issues hindered its ability to control costs and set prices. With UltraTech's involvement, these issues should improve. As of August 1, 2024, UltraTech's share was trading at Rs 11,864.00, down by 0.20% in early trade today, while India Cements share was down to Rs 363.75, down by 0.14%.

Ultratech acquires majority stake in India Cements: What are the implications, all you need to know

Behind the scenes of the $14bn Hinduja family feud involving Britain’s richest

<ul><li>Tata Group has interests in four airlines - Air India, Air India Express, AirAsia India and Vistara. </li><li>It is merging low cost airlines Air India Express and AirAsia India; and Vistara with Air India. </li><li>While Air India has been improving its operational performance, it’s in the middle of a turnaround and its CEO says they will have to hit singles with an occasional fours and sixes. </li><li>Vistara and AirAsia India are yet to turn profitable. </li></ul>It’s been less than a decade since the Tatas re-entered the aviation sector – via joint ventures – growing both organically and inorganically. With its $2.4 billion acquisition of government-owned Air India, Tatas have earned the rare distinction of being a part of four airline ventures – Vistara, AirAsia India, Air India and Air India Express. Now, it’s bringing its interests together – by merging low-cost carriers AirAsia with Air India’s low-cost subsidiary Air India Express. It’s also moving towards merging its other two full-service airlines – Vistara with Air India. Between Tata-owned airlines and the largest carrier, IndiGo – the Indian airline industry is set for a duopoly, experts say. “The industry is headed towards a duopolistic structure with Air India and IndiGo making up a dominant 80% of the market,” said an Edelweiss report. IndiGo had a market share of 57.7% as of August 2022 in domestic traffic. The Tata group, on the other hand, carries over a quarter of India’s aviation passengers with Air India and Vistara having a 9.7% share each, and AirAsia’s 5.8% share. This ‘structural command’ is good for both these groups, which will give them better pricing power – that’s much needed as the sector faces headwinds from hike in aviation turbine fuel prices. “The anticipated duopoly would surely bring pricing discipline among large carriers and that should improve their financial performance,” Manvi Hooda, practice lead at CAPA India, said in an Edelweiss report. Tata’s airline interests <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Airline </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tata’s stake </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Other owners </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Vistara </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">51% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">49% held by Singapore Airlines </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">AirAsia India </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">100% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Air India </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">100% stake </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Air India Express </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">100% stake (Air India’s subsidiary) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr></tbody></table> Source: Press releases, reports Air India on a ‘growth’ path IndiGo’s direct competitor - Air India – has been competing with the airline in terms of a key metric – on-time performance (OTP). OTP has always been IndiGo’s USP and since June, Air India – which has been an outlier – has raced ahead of it. As of September, 87% of Air India’s flights have been on time as compared to 84% of IndiGo’s flights, as per <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/air-india-indigo-in-a-battle-of-on-time-performance/articleshow/95214432.cms">an Economic Times</a> report. Air India’s new CEO Campbell Wilson who has WAS brought in to turn around the formerly debt-ridden state-owned carrier said that its improved performance is an effect of investment in IT systems and strict monitoring of turnaround times. It is also showing an improvement in its passenger load factors or PLFs. Air India was also one of two airlines that has shown a 2.5% improvement in PLF to 73.6% in August as compared to July. Its group airlines – Vistara and AirAsia too held on to their PLFs at 84.3% and 75%, respectively. The sector is poised to take off The Indian aviation sector, like most others, went through a dry phase during lockdowns and one of the rare such markets which has survived without an airline going under. Now, its recovery is one of the fastest in the world and is looking at a rapid growth in volumes. “Industry volumes, although still slightly lower than pre-Covid peak, are recovering at a rapid pace. In FY23, we forecast domestic industry volume growth of over 50%. The demand environment for air travel in India is very strong with economic rebound post-Covid, resurgence in corporate travel and normalization of international tourist arrivals,” said a report by IIFL. This sentiment is also shared by Singapore Airlines, which owns 49% in Vistara. Singapore Airlines’ CEO Goh Choon Phong said in<a href="https://indianexpress.com/article/business/aviation/singapore-airlines-eyes-overseas-hub-highlights-india-as-key-growth-area-vistara-7946867/"> an interview with Bloomberg </a>that India is poised to become the world’s third-biggest aviation market by the middle of this decade, if not before. Apart from a wide and growing domestic market, India has a huge potential to grow international travellers – and its many international partnerships count. All the airlines under Tata have been ramping up from the opportunity. While <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/air-india-looking-to-become-carrier-of-choice-globally-campbell-wilson-ceo-md/articleshow/94903549.cms?from=mdr">Air India with its legacy</a> in international travel, is all set to capture the growth in travel between India and North America, Vistara too has been ramping up flights <a href="https://traveltradejournal.com/vistara-ramps-up-frequencies-to-frankfurt-and-paris/#:~:text=Starting%2030%20October%202022%2C%20Vistara,from%202x%20to%205x%20weekly.">across international destinations</a>. On the other end, <a href="https://www.thehindu.com/business/air-india-express-said-to-add-4-boeing-737s-to-meet-growing-demand/article65577170.ece">LCC subsidiary of Air India</a>, Air India Express too is adding new Boeings to its fleet to meet the growing demand. AirAsia too has been inching up its plans to go international. The drag factors All these factors, however, are half the chips in the place – all bode well for a growing aviation conglomerate. Yet, <a href="https://www.livemint.com/companies/news/tatas-face-uphill-task-in-air-india-turnround-11666293856299.html">analysts have their </a>doubts when it comes to Tata’s ability to pull off these complicated mergers with various cross-holdings and integrate their strengths with partners. Moreso, each of its airlines have their own issues. Vistara and AirAsia India are yet to turn profitable, and they started operations in 2015 and 2013, respectively. Added to that, Air India has a lot of baggage in terms of legacy routes that are unproductive, and in the midst of a turnaround that’s yet to complete – and looks like it would take time. Wilson, who was formerly the CEO of Singapore’s Scoot, too had earlier said that turning around Air India is a matter of hitting many ‘singles’ and an occasional ‘sixes and fours’ <a href="https://m.economictimes.com/industry/transportation/airlines-/-aviation/turning-around-air-india-is-a-test-match-we-will-take-lots-of-singles-and-also-hit-the-occasional-fours-and-sixes-campbell-wilson/articleshow/94907763.cms?_oref=cook">in the journey</a>. In spite of healthy growth expectations, the sector could also turn competitive with the arrival of new players – Akasa Air and Jet Airways which are poised for a comeback. While Tata group airlines with their strong market share might be able to withstand pricing pressures better, aggressive challengers might wrest it away from them. Yet, all in all the Tata group has one more trick up its sleeve – its extensive presence in the hospitality sector and its ongoing digital integration as a part of its super app, Tata Neu. The app brings all the services the group offers from retail to hospitality to wallets under one umbrella, and that could bring in revenue upside as the app builds a loyalty programme. As per an HSBC report in August, the group’s Indian Hotels’ loyalty member revenues now contribute to 18% of total revenues by the end of first quarter from 12-13%. While IHCL had 2 million loyalty members of its own, the Tata Neu app helped push this base to 3 million, the report had said. If similar synergies kick in to the aviation business too, there is a value that the group’s umbrella can add to the airlines - both merged and individually. SEE ALSO <a href="https://www.businessinsider.in/business/corporates/article/nykaas-fashion-foray-and-pipeline-style-biz-model-worries-analysts/articleshow/95405203.cms">Nykaa’s fashion foray and pipeline-style biz model worries analysts</a> <a href="https://www.businessinsider.in/careers/news/indian-students-going-abroad-to-face-a-triple-whammy-of-inflation-forex-and-interest-rates/articleshow/94974003.cms">Indian students going abroad to face a triple whammy of inflation, forex and interest rates</a>

Tata's mega aviation merger is poised for flight, but the skies are not clear yet

<ul><li>As the Big Boys of online commerce allocate more real estate to beauty and personal care on their platforms, Nykaa is set to face the heat of competition. </li><li>A new HDFC Securities report says that Nykaa is not a platform at all, as its non-linear sources of income remain limited. </li><li>Fashion business continues to be a drag for the hybrid retailer with Q2 being a complete washout despite festive cheer. </li></ul>The public listing of Nykaa, the popular online beauty and personal care retailer, may have made its founder Falguni Nayar the poster girl of <a href="https://www.businessinsider.in/business/news/nykaas-falguni-nayar-takes-over-kiran-mazumdar-shaw-as-the-richest-self-made-indian-woman/articleshow/93158649.cms">several billionaire lists</a>, but less than a year after its listing, investors are raising red flags on its model. Several new-age tech-driven businesses tapped public markets last year with very fancy valuations, as platform businesses have nonlinear growth paths and are, therefore, disruptive. The market is now questioning the very platform status of Nykaa. HDFC Securities has termed Nykaa as an efficient online pipeline rather than a platform. Nykaa was among the first to retail beauty products online in India, where physical distribution is a huge challenge. A platform business tends to solve such bottlenecks and they also have the ability to layer on multiple revenue streams at very little incremental cost. Analysts now are of the view that the hybrid retailer will not only face competitive intensity but also have to fight for nonlinear income sources like advertising with bigger giants like AJIO, Tata Cliq Palette and Myntra. Nykaa will have to take on the Big Boys with deep pockets if it wants to remain relevant to its core customer cohort. Not surprising then that in the last one year, shares of FSN E-commerce Ventures (Nykaa’s parent) are down 50.1% from listing day, making the company announce 5:1 bonus shares. Despite the lure of more shares, market experts have warned investors not to rush to buy the stock ahead of the record date for the bonus issue. Q2 earnings did little to allay fears The company’s financials for the quarter ended September have done little to allay these concerns, with a mere 3.6% growth in net profit sequent<a href="https://www.businessinsider.in/business/corporates/news/nykaa-stock-climbs-over-5-after-it-reports-5-2-crore-profit-in-q2/articleshow/95229929.cms">ially as its expenses rose.</a> The strongest critique post its Q2 performance came from HDFC Securities, which claims that the company cannot be termed a ‘platform’ due to its pipeline-like business model. While Nykaa continues to be strong in its key vertical – beauty and personal care (BPC) – it is struggling to gain market share in the fashion vertical. A bigger risk is the emerging competition that Nykaa is expected to face from competitors with much deeper pockets. Amazon and Myntra are allocating more real estate to BPC on their platforms and in marketing communications, says JM Financial. Analysts are hoping that there will be a reversal in the profitability of Nykaa fashion vertical. What has also come to haunt Nykaa is the meltdown globally in the valuations of tech businesses. HDFC Securities’ report titled ‘Mirror, mirror on the wall, is Nykaa a platform at all’ is the most damning one so far against the beauty and fashion retailer. “Nykaa clocked 50% CAGR (compound annual growth rate) over FY19-22; its EBITDAM (earnings before interest, tax, depreciation and amortisation margins) expanded around 250 basis points and it has a linear asset turn profile —all akin to an online pipeline. Unlike platforms, pipelines typically lack the ability to build nonlinear cash flow-accretive revenue streams (except perhaps ad income generated from brands if it’s an online pipe),” said the HDFC report. While platforms have multiple income sources, a pipeline business is an old-style business where inventory is piled at one end and sold at the other. Platforms, the best example of which is YouTube, have multiple monetary sources from both sellers and buyers. “Nykaa has the potential to be a hybrid, but as of now (85% of net sales value or NSV - inventory-led), it shares more characteristics with a busy, efficient, linear online pipeline than a platform,” the HDFC report said. Source: BSE Where are the margins? Nykaa’s growth, its margin expansion and asset profile show signs of a pipeline – and not a platform that can turn extremely powerful at scale once it attains critical mass – and does not warrant ‘platform valuations’. Pipelines in general are a low-margin inventory business and while Nykaa does have advertising income where sellers advertise on it – this income is closely tied to its unit economics. “The BPC (beauty and personal care) segment – Nykaa’s cash cow– while a go-to destination for shopping, is (as of today) heavily reliant on ad/shipping income for its profitability/return ratios” the HDFC report said. “Product EBITDAM is estimated to be just about profitable now (FY22). Of course, this might change as Nykaa scales its own brand portfolio and order density. However, any dip in the ad income could be a negative counter-balancing factor (not factored in),” the report added. Moreover, the unique proposition that Nykaa had in the market is fast vanishing with moneyed competitors entering the market. “We decrease our target multiple to factor the recent corrections in new-age internet companies in backdrop of increasing risk premium. The risks of increased competition from some of the large well-capitalised players (Reliance, ABFRL, Tata etc) is key,” said Dolat Capital. Apart from losing business, the ad revenue of brands might also get distributed between the many emerging players in the business — a key factor affecting Nykaa’s profitability – possibly affecting its journey towards becoming a full-fledged platform. However, HSBC differs in its opinion on Nykaa’s business model. It believes that it’s a rare combination of profitability and sustainable exponential growth and expects its revenue to double every 2-3 years in the coming decade. “Augmenting the core e-commerce operation with a growing pan-India store network,raising structural barriers for others and edging up its game in the consumer experience; building a portfolio of its own skin and beauty brands, and extending its overall proposition for other retailer through eB2B SuperStore by Nykaa. This should make Nykaa’s long-term evolution as not just a platform owner but also a formidable brand owner,” said HSBC. Fashion forward? Nykaa’s venture into the fashion business too has met with many sceptics in the analyst community – also in the light of intense competition. For the second quarter of the year, the gross merchandise value increased for this business by 43% y-o-y, albeit on a low base, while sequentially it was up a marginal 3%, as per the HSBC report. Even as its own brands made their way to 39 multi-brand outlets and 503 general trade outlets, Nykaa also has three of its own stores dedicated to this business. “Management mentioned that they are not pursuing GMV growth for the fashion business, rather they aim to strike a balance between growth and profitability. We adjust our FY23-FY25e estimates post the 2Q FY23 results. We lowered our revenue estimates primarily for the fashion business. We raise our margin assumptions as we expect that the company will be able to control costs given higher efficiencies and operating leverage,” said a report by HSBC. However, its entry into this business can offer it something that BPC lacks – a strong advertising market. The fashion vertical is gaining a significant share of brands’ digital advertising, said a report by JM Financial. “While Nykaa generates 6%+ of GMV in BPC ads income, the same number for fashion is lower than 4% currently, though fashion brands allocate a higher percentage to advertising expenses. If Nykaa does become the go-to platform for online fashion purchases in India, we see significant upside from ads income,” said the JM Financial report. In its journey to become a fashion forward business, Nykaa is hitting the same wall as its BPC segment – intense competition and moreso it also lacks the first-mover advantage that most other established brands already have. Nykaa’s nascent presence in the market also means that it’s yet to bring in the ability to make multi-stream revenue from the fashion business. “In BPC, NSV to revenue from operations is higher due to advertising revenue. In fashion, the difference between NSV to revenue is due to the inventory model where only commission revenue is accounted,” said Dolat Capital. The long-term value accretion of Nykaa depends on its ability to drive value through its own brands, multi-stream revenue and also from the fashion business — that’s currently haemorrhaging money and a difficult and overcrowded market to crack.

Nykaa’s fashion foray and pipeline-style biz model worries analysts

Over the last two decades, many MNCs have made deep inroads into the Indian market. India is the world’s largest open internet market today, which translates into a plethora of opportunities for global organizations. The Indian economy has been witnessing a growth trajectory like no other, making it a favorable destination for global companies looking to expand their reach and create a sustained business success story. Currently, India is the fifth-largest economy globally and is projected to grow to $5 trillion by the end of 2025. India is the world’s largest open internet market today, which translates into a plethora of opportunities for global organizations. However, succeeding in India requires more than transplanting a global idea. Organizations that have made a mark in the subcontinent come to India with a long-term commitment and consider India not just another market but also a learning centre for launching and scaling in emerging economies worldwide. Consequently, strategic partnerships play a crucial role in enabling success for global companies in India, in more ways than one. Some of these include – Finding a place in India’s cultural zeitgeist: India is a diverse continent both culturally and economically, to an extent that every 200 km, language and culture changes in the country. Given this diversity, understanding the pulse of Indian consumers and what shapes their sensibilities, is one of the most critical aspects of making a lasting impact in India. Cricket, movies, politics, music, festivals, and food are all popular pursuits in India and for a global brand to build a deep consumer connection, it is imperative for them to be able to leverage these cultural moments. Global organizations need to recognize that many Indias exist within the subcontinent and to achieve scale and success, a localized strategy is a must. A deep-rooted meaningful connection with key target audiences is often built on the back of such momentous moments that bring people together almost naturally. This is where the right strategic partner and their understanding of the local know-how can hugely benefit global brands that are new to the cultural nuances of India. Forging strategic partnerships: Over the last two decades, many MNCs have made deep inroads into the Indian market. The key to matching pace with the diverse market is to invest in cultural alignment through a phased approach consisting of access driven localisation of positioning, product and channels for an engaging market penetration. The Indian business landscape is far more open and accessible for global companies, as compared to some of the world’s biggest economies. The increased focus towards welcoming forging investments in the country has further unlocked India’s potential and accelerated the growth of its economy. Recent successes achieved by some global behemoths including Uber and Airbnb showcases how a well thought strategic crafted partnership with people, organization, government &amp; IPs is important for long term growth and impact. Leveraging India’s potential as the innovation hub: India for long has served as a go-to destination for low-tech services but the market has now become the tech and innovation hub for various global organizations. With its massive consumer market, it has users for all kinds of new products or technology and is slowly developing into a centre for emerging markets. If it works in India, it would almost certainly work in other developing economies. While the country has already established itself as a trusted player for service delivery, it is now on the cusp of becoming the product innovation hub for the world. India is the world’s largest democracy with young demographics and an open digital market. It does offer many opportunities but with its own unique challenges. Therefore, it is better to look at it as a collection of interrelated regional economies, with varying regulatory and investment environments from one state to the next. While the nation has enormous prospects for global brands, it continues to be a large and complex market that requires careful navigation. Approaching the market with a multi-dimensional view, backed by a local strategic partner can lead to a successful venture in the country. Localisation Strategy: With 700million online users and nearly 200 million online buyers in India, initial success for a global business is achievable with the right product and strategy. But for sustained growth, companies have to navigate through various market complexities. With a population of 1.4 billion, 20+ other official languages, varied dialects, food, and living styles, India provides an opportunity to global brands, like no other developing economy. It is equally important to look at India multidimensionally, as consumer behaviors drastically differ between urban metros and Tier 2 and 3 cities. An empathetic approach to the market with focus on the cultural nuances, market sentiments, and customer segments mentored by a local partner can only ensure continued success. To summarise, for making it count in India, global organizations require a deep understanding of the country’s diverse cultural nuances, a solid local operations partner, investment in local talent and an unmatched understanding of the business ecosystem. For tapping and benefitting from the ample opportunities that India offers, global companies should enter the market with a long-term commitment and vision and must customise their working model to suit the requirements of the ever-evolving Indian consumer. Note: This is an opinion piece by Viral Jani, EVP &amp; Country Head, India, Times Bridge. The story originally appeared in The Financial Express.

How strategic partnerships can help global companies enter India and scale their business

The novel coronavirus, COVID-19, pandemic has thrown up yet another risk for top Indian banks. When the current lockdown is lifted, it is expected that thousands of jobs will be at risk as businesses realign themselves to a long period of slow economic activity. When people lose jobs or livelihood, their ability to repay loans⁠— including but not limited to personal loans, home loans, car loans, education loans, and credit card debt ⁠— will be tested and if some, or many of them, fail, the amount of bad loans will rise. So far, the Indian banking system has total non-performing assets (NPA) worth ₹9.36 lakh crore ($124 billion), about 9.1% of all the loans advanced. However, most of the defaults have been from companies, big or small. The retail borrower, i.e. individuals including those earning salaries, have continued to pay up their instalments. The gross NPA in retail loans is anywhere between 0.8% to 1.5% whereas in loans to industries, the same is over 11% (in the case of Axis Bank and State Bank of India) and as high as 17% for ICICI Bank. The extent of the dent on the common man’s prospects will be unclear as <a href="https://www.businessinsider.in/finance/news/home-loans-education-loans-and-business-loan-interest-payments-deferred-for-three-months-by-rbi/articleshow/74841767.cms" data-type="tilCustomLink" target="_blank">the Reserve Bank of India has given a three-month leave from equated monthly instalments</a> (EMI). There will be added pressure on small businesses who will be cash strapped at the end of the lockdown and many of them may struggle to service their loans. “The lock down of the domestic and global economies due to the COVID-19 threat will have a meaningful impact on banks’ loan-book growth,” advisors at PhilipCapital said in a recent report estimating a rise in loan-loss provision and slashing earnings estimates for the top banks anywhere between 10% (in the Kotak Bank Mahindra Bank) and 35% (for IndusInd Bank). So here’s a look at the top Indian banks with the most amount of loans to retail borrowers as well as micro, medium, and small enterprises— higher the proportion, greater the risk. <table style="width: 318pt;"> </colgroup> <tbody><tr> <td class="xl64" style="height:15.0pt;width:119pt">Bank</td> <td class="xl65" style="border-left-width: initial; border-left-style: none; width: 107pt;">Retail loans</td> <td class="xl66" style="border-left-width: initial; border-left-style: none; width: 92pt;">MSME loans</td> </tr> <tr> <td class="xl67" style="height: 15pt; border-top-width: initial; border-top-style: none;">Axis Bank</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">45%</td> <td class="xl68" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">13%</td> </tr> <tr> <td class="xl67" style="height: 15pt; border-top-width: initial; border-top-style: none;">DCB Bank</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">56%</td> <td class="xl68" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">11%</td> </tr> <tr> <td class="xl67" style="height: 15pt; border-top-width: initial; border-top-style: none;">HDFC Bank</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">45%</td> <td class="xl68" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">15%</td> </tr> <tr> <td class="xl67" style="height: 15pt; border-top-width: initial; border-top-style: none;">ICICI Bank</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">50%</td> <td class="xl68" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">7%</td> </tr> <tr> <td class="xl67" style="height: 15pt; border-top-width: initial; border-top-style: none;">IndusInd Bank</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">36%</td> <td class="xl68" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">8%</td> </tr> <tr> <td class="xl67" style="height: 15pt; border-top-width: initial; border-top-style: none;">Kotak Mahindra Bank</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">42%</td> <td class="xl68" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">15%</td> </tr> <tr> <td class="xl69" style="height: 15.75pt; border-top-width: initial; border-top-style: none;">State Bank of India</td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">31%</td> <td class="xl71" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">12%</td> </tr></tbody></table>Proportions are based on total loan book Source: PhilipCapital However, one has to remember that the strength of the bank to withstand such defaults, if they were to occur, will depend on a variety of factors. "Comparison of banks on key parameters such as deposit franchisee, loan book mix, asset quality, capital position and liquidity position indicate that banks such as HDFC Bank, ICICI Bank, and Kotak Mahindra Bank stand out in terms of relative strength. However, for IndusInd Bank, the relative strength is on the lower side due to a weak deposit franchisee and higher concentration in the vulnerable corporate segment (like LRD, CRE, gems and jewellery) and commercial vehicles," the report added. SEE ALSO: <a href="https://www.businessinsider.in/finance/news/these-banks-are-giving-out-emergency-funds-to-help-customers-tide-through-the-coronavirus-lockdown/articleshow/74814232.cms" data-type="tilCustomLink" target="_blank">These banks are giving out emergency funds to help customers tide through the Coronavirus lockdown</a> <a href="https://www.businessinsider.in/finance/news/heres-how-indian-banks-will-operate-during-the-21-day-lock-down/articleshow/74804844.cms" data-type="tilCustomLink" target="_blank">Here's how Indian banks will operate during the 21-day lock down</a> <a href="https://www.businessinsider.in/stock-market/markets/news/sbi-cards-ipo-date-ipo-size-company-data-and-peer-comparison-with-hdfc-bank-icici-bank-and-axis-bank/articleshow/74297734.cms" data-type="tilCustomLink" target="_blank">SBI Cards IPO is open to investors ⁠— India's second largest credit card seller is hot even before its market debut</a>

Top Indian banks with the biggest chunks of loans to individual borrowers⁠— and coronavirus has triggered a huge risk

<ul><li>The spokesperson for India's Ministry of External Affairs had a sharp critcism for Turkish President Recep Tayyip Erdoğan's comments on Kashmir inside Pakistan's Parliament.</li><li>Erdogan said he would return Pakistan's favour of helping Turkey during its fight for independence that he likened to the situation in Kashmir.</li><li>There is a lot at stake in terms of trade for India. Turkey is one of the few countries to which India exports more than it imports.</li></ul>Indian government may insist all is well in Kashmir but at the same time, the issue is turning out a diplomatic headache for the Narendra Modi government in New Delhi. Turkish President Recep Tayyip Erdoğan's comments inside Pakistan's Parliament has led to a sharp rebuke from India's Ministry of External Affairs saying Erdogan has shown he neither understands history nor the conduct of diplomacy. Aside from diplomatic ties between the two countries, what is also at stake in the standoff is exports worth over $4 billion a year. The war of words may threaten trade ties between the two countries that got a big boost after Erdogan's visit in May 2017. Indian exports turkey have risen from a little over $650 million in 2015 to over $4.3 billion in the first nine months of 2019, <a href="http://www.mfa.gov.tr/turkey_s-commercial-and-economic-relations-with-india.en.mfa" data-type="tilCustomLink" target="_blank">according to official data</a> from Istanbul. Some of the key stakeholders who will be hurt by the freezing of trade or investment, if at all, include oil products exporter Reliance Industries, owned Asia's richest man Mukesh Ambani, the Tata Group, and the Mahindra Group to name a few. 
 
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 Erdogan had earlier criticised India at the United Nations General Assembly in September 2019. Turkey was one of the four countries taking Indian on, Pakistan, China, and Malaysia were the other three. Right after that speech, <a href="https://www.financialexpress.com/defence/unga-fallout-turkish-company-could-be-out-of-the-fss-project-for-indian-navy/1724697/" data-type="tilCustomLink" target="_blank">a $2.3 billion ship building contract</a> from the Indian Navy to a Turkish company, Anadolu Shipyard, was put on hold without any explanation. Turkish investments in India and vice versa Currently, contractors from Turkey have projects worth $430 million underway in India. These include "the Lucknow subway construction, the Mumbai subway construction, a railway tunnel construction in Jammu Kashmir and various housing projects.," the Turkish Ministry of Foreign Affairs said. For instance, Gulermak, one of Turkey's leading engineering and construction services company, has the contract for metro rail projects in Lucknow and Pune. The Pune contract has been given by a <a href="https://press.siemens.com/in/en/pressrelease/tata-siemens-consortium-wins-bid-pune-metro-project" data-type="tilCustomLink" target="_blank">Tata Group company, TRIL Urban Transport and Siemens</a>. There are 150 Indian companies employing 5,000 people in Turkey. About 40 of these companies are active in production, services and agriculture, according to data from the Embassy of India in Ankara, a September 2019 report said. Mahindra &amp; Mahindra acquired a Turkish tractor maker Erkunt Traktor Sanayii for an <a href="https://economictimes.indiatimes.com/mm-to-acquire-turkish-tractor-foundry-firms-for-rs-735-crore/articleshow/60763889.cms" data-type="tilCustomLink" target="_blank">enterprise value of $117 million (₹735 crore) in 2017</a>. Other Indian companies that have a thriving business in Turkey include Polyplex, GMR Infrastructure, TATA Motors, Reliance Industries, Jain Irrigation, Wipro and Dabur, <a href="https://www.eximbankindia.in/Assets/Dynamic/PDF/Publication-Resources/ResearchPapers/32file.pdf" data-type="tilCustomLink" target="_blank">according to a 2015 EXIM Bank report</a>. <table style="width: 155pt;"> </colgroup> <tbody><tr> <td class="xl63" style="height:15.0pt;width:107pt">Stock</td> <td class="xl64" style="border-left-width: initial; border-left-style: none; width: 48pt;">17-Feb</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Reliance Industries</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-0.61%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Tata Motors</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">0.53%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Mahindra &amp; Mahindra</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">0.29%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Polyplex</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">2.66%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">GMR Infra</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-1.95%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Wipro</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">0.39%</td> </tr> <tr> <td class="xl67" style="height: 15.75pt; border-top-width: initial; border-top-style: none;">Dabur</td> <td class="xl68" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">0.87%</td> </tr></tbody></table> Turkish consumer appliances maker Arcelik has a manufacturing plant in Sanand, Gujarat, with Tata Group-owned air-conditioning giant Voltas. The two companies together have invested about₹700 crore so far and intend to triple it in the days to come, <a href="https://www.financialexpress.com/industry/voltas-beko-pumps-rs-1284-cr-into-white-goods-factory-eyes-top-slot-by-2025/1853166/" data-type="tilCustomLink" target="_blank">according to a report earlier this month</a>. Indian packaging material maker Polyplex has a <a href="https://www.polyplex.com/about-us/global-presence/polyplex-turkey" data-type="tilCustomLink" target="_blank">manufacturing plant in Corlu</a>, from where it supplies to markets in Europe. Other Turkish companies that have presence in India include Limak Construction, Fernas, Sarar, Soktas, Izopoli-Kingspan, and Hidromas. This is nowhere close to an exhaustive list. The standoff has been escalating since September Turkey was the first to rake up a issue that India hates discussing outside its borders. On Friday (February 14), President Erdogan said the suffering of the Kashmiri people had worsened in recent years due to the taking of "unilateral steps" inside the Pakistan Parliament. 
 
 <div type="image" title="Recep Tayyip Erdogan" msid="74174002" hostid="261" caption="&amp;lt;p&amp;gt;Turkey&amp;#39;s President Recep Tayyip Erdogan addresses the members of his ruling party at the parliament, in Ankara, Turkey, Wednesday, Feb. 5, 2020. Erdogan threatened to use force against Syrian government forces if they don&amp;#39;t pull back to an earlier cease-fire line in northern Syria by the end of the month. Erdogan&amp;#39;s remarks followed rare direct clashes Monday between Turkish and Syrian troops inside Syria, which killed several Turkish and Syrian personnel.Photo/Burhan Ozbilici)&amp;lt;/p&amp;gt;"></div>





 He was referring to the suspension of the Indian state's 'special status' and the infamous lockdown and internet shutdown that followed to keep things under control in the Kashmir valley. The response from India was equally sharp. "India has made a strong demarche with Turkish Govt on remarks made by President Erdogan on Indian Union Territory of Jammu&amp;Kashmir during his recent visit to Islamabad," Raveesh Kumar, the spokesperson for India's Ministry of External Affairs, said on February 17. 
	
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 India has always maintained that the strife in Kashmir is a matter between the government and its people and not a 'bilateral' border dispute with Kashmir. However, India and Pakistan have fought three wars in the last seven decades over the Kashmir issue. These comments will also set the context for <a href="https://www.businessinsider.in/politics/india/news/donald-trump-and-mike-pompeo-get-message-from-us-senators-for-narendra-modi/articleshow/74120952.cms" data-type="tilCustomLink" target="_blank">Donald Trump's visit to India</a>. The US President has repeatedly offered to mediate between India and Pakistan but India has resisted it. While it is not clear whether India's diplomacy will be offensive or defensive, business owners like the Tatas and Mahindras will remain anxious. SEE ALSO: <a href="https://www.businessinsider.in/thelife/news/9-mind-blowing-facts-that-show-just-how-wealthy-mukesh-ambani-the-richest-person-in-asia-really-is/articleshow/73671508.cms" data-type="tilCustomLink" target="_blank">9 mind-blowing facts that show just how wealthy Mukesh Ambani, the richest person in Asia, really is</a> <a href="https://www.businessinsider.in/business/news/tata-sons-chairman-n-chandrasekarans-vision-a-smart-economy-in-2030-does-not-have-white-shiny-robots-taking-away-jobs/articleshow/74100179.cms" data-type="tilCustomLink" target="_blank">Tata Sons Chairman N Chandrasekaran's vision of a smart economy in 2030 does not have white, shiny robots taking away jobs</a> <a href="https://www.businessinsider.in/business/auto/news/upcoming-cars-and-suv-launches-from-mahindra-in-india/articleshow/74170520.cms" data-type="tilCustomLink" target="_blank">Upcoming cars and SUV launches from the Mahindra Group in India</a>

From Mukesh Ambani to Tatas to Mahindra⁠— all those who must fear the escalating standoff between India and Turkey

<ul><li>Investors are celebrating a surprise 15% growth in the latest quarterly and upgrade in future earnings estimates.</li><li>The stock is at a one-year high but still nearly 20% below the peak in 2018, the year Rajan Nanda, the company's Chairman for nearly two tough decades, passed away.</li><li>A new book called 'Back From The Brink' charts the company's slide into 'coma' and 'the claw back' of Escorts.</li></ul>The share price of Escorts surged nearly 7% on Thursday (January 30) as investors cheered a surprise 7% growth in the company’s quarterly profit. Brokerages lauded the performance of the company ⁠— which is the world’s largest Pick `n` Carry Hydraulic Mobile Crane manufacturer⁠— and raised the estimates for future earnings growth. The stock has doubled in the last three years but it is still 20% below the peak it hit in 2018. This was before Rajan Nanda ⁠— the company’s Chairman for nearly two long and strenuous decades⁠— passed away. This, despite the company clocking a spectacular 40% growth in profit in the last financial year ending March 2019. 
 
 
 
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 However, the improving prospects of the company, known for its tractors in India, may be the result of a long, focussed effort in reimagining the 76-year old conglomerate in the 21st century under the leadership of Rajan’s son Nikhil Nanda. 
 
 
 
 <div type="image" title="Nanda family" msid="73791780" hostid="261" caption="&amp;lt;p&amp;gt;(Clockwise from left) Rajan Nanda, Nitasha Nanda, Nikhil Nanda, Shweta Bachchan Nanda, Ritu Nanda and Reema Jain at the legendary actor and filmmaker Raj Kapoor&amp;#8217;s birthday celebrated by his children &amp;#8211; Rishi Kapoor, Randhir Kapoor, Rajiv Kapoor, Ritu Nanda and Reema Jain in Delhi. Photo: Samik Sen from 2017&amp;lt;/p&amp;gt;"></div>









 A new book called ‘Back From the Brink’, written by Seetha and Sharad Gupta and published by Harper Business documents Escorts’ ‘claw back’ after ‘sliding into coma’. The group’s foray into telecom and healthcare had dragged it into debt. A young Nikhil Nanda from Wharton joined his father’s company, Rajan Nanda was restructuring it. 
 
 
 
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 But by the time Nikhil took over as the chairman, he was left with mounds of debt, now, four struggling businesses, and the trust he lost with banks. So much so that bankers refused to pay attention to his presentation. And, one of them even offered to “to cut him a cheque to walk out gracefully”. His family’s reputation has taken a beating at multiple levels. His wife Shweta Bacchan Nanda once overheard a banker friend’s remark, ‘How can Nikhil and Shweta come to our homes and socialise with us, when his company owes us money?” In times of despair, Nikhil reminded himself that his family has always risen from the ashes. His maternal grandfather H P Nanda brought it back to life twice after Partition, and another hostile takeover by NRI Swraj Paul. 
 
 
 
 <div type="image" title="swraj paul" msid="73791919" hostid="261" caption="&amp;lt;p&amp;gt;Escorts Chairman Nikhil Nanda&amp;#39;s maternal grandfather H P had to fend off a hostile takeover attempt by NRI industriialist Swraj Paul (in the picture above).&amp;lt;/p&amp;gt;"></div>









 It was time for Nikhil to take drastic action - the first was the sale of telecom, IT and hospital businesses. But the bigger problem was lack of communication between businesses and rampant financial indiscipline. With his father’s approval, he grilled the chief executive of a small but bleeding business and when he received vague responses, fired him. That had sent the much needed shockwaves through the company. The last six years Nikhil also helped set-up audit committees across businesses that improved scrutiny which gave the management a better picture of businesses. Yet, the much needed stability was yet to come in as a flurry of CFOs came and left the company. That is when he decided to promote in-house talent and brought Rohtash Mal as the ED and CEO, who was then heading the tractor business. Mal had to deal with daily walk-ins of supplier complaints, dealers and bankers and they included cases of cheque bouncing. The employees were scared and official politics had taken a vicious turn. And Mal was unearthing shocking discoveries like empty liquor bottles on the shop floor. The very next day, he handed a senior executive in the manufacturing department two letters - an unsigned resignation letter and a termination letter. Nikhil did not intervene with his decision. Slowly but steadily Nikhil regained control over the financial and the management, by screwing the cap on costs; convincing bankers to extend credit lines and more importantly refusing the airbrushed versions presented of the businesses. Today, apart from bankers, brokerages too put their trust into the company in spite of the effects of the slowdown eating into the business. Cut to 2020 In the last few years, the company’s market worth has gone from ₹6,000 crore to ₹10,000 crore. Nearly 30% of the jump has come in 2020 itself as investors saw structural changes take effect in the company’s financial performance. “Escorts’ third quarter performance is a reflection of stability in volumes, benefit of mix improvement and cost savings, all of which should sustain in the coming quarters. According to management, FY21 outlook has turned positive with estimated low single-digit growth,” said a research report by Motilal Oswal adding that the stock may gain as much as another 9% in the next 12 months. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/bucking-the-slowdown-dominos-operator-jubilant-fevicol-maker-pidilite-and-pesticide-maker-rallis/articleshow/73761693.cms?src=hp_latest" data-type="tilCustomLink" target="_blank">Bucking the slowdown — Dominos operator Jubilant, Fevicol maker Pidilite, and pesticide maker Rallis</a> <a href="https://www.businessinsider.in/exclusive-tcs-ceo-shares-his-hopes-and-fears-from-the-budget-2020/articleshow/73753459.cms" data-type="tilCustomLink" target="_blank">Exclusive: TCS CEO shares his hopes and fears from the budget 2020</a> <a href="https://www.businessinsider.in/business/corporates/news/wipro-ceo-abidali-neemuchwala-resigns-board-starts-search-for-successor/articleshow/73789746.cms" data-type="tilCustomLink" target="_blank">Wipro CEO Abidali Neemuchwala resigns, board starts search for successor</a>

The inside story of how Escorts turned around to become a nearly ₹10,000-crore company

<ul><li>Bezos started his three-day visit by paying homage to Mahatma Gandhi; and even wore a Nehru jacket. </li><li>Yet, he received a tepid response from the government – probably due to the backlash from trader unions. </li><li>The union commerce minister<a href="https://economictimes.indiatimes.com/industry/services/retail/amazon-not-doing-favour-to-india-by-investing-a-billion-dollars-goyal/articleshow/73302716.cms"> Piyush Goyal scoffed</a> at Bezos’ $1 billion investment in the country saying, “he is not doing India a favour.” </li><li>BJP’s <a href="https://economictimes.indiatimes.com/industry/services/retail/after-indias-amazon-snub-bjp-slams-jeff-bezos-owned-washington-post/articleshow/73324340.cms">foreign affairs head Vijay Chauthaiwale </a>had blamed Washington Post, owned by Bezos, for unflattering coverage of India and Modi. </li></ul>The world’s richest man had a bittersweet experience in one of the world’s fastest growing e-commerce markets. Jeff Bezos did everything that is needed to show India, respect. But the Indian Prime Minister Narendra Modi is unmoved, so far. He started his three-day visit by paying homage to Mahatma Gandhi; and even wore a Nehru jacket which is now also referred to as Modi jacket. He also drove an e-rickshaw and fondly joked with India’s sweetheart, Shah Rukh Khan. 
	
	
	
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 Bezos got a lukewarm welcome from India’s trade and industry minister Piyush Goyal Yet, Bezos received a tepid response from the government – probably due to the backlash from trader unions who are blaming him and his industry for weeding them out. The union commerce minister<a href="https://economictimes.indiatimes.com/industry/services/retail/amazon-not-doing-favour-to-india-by-investing-a-billion-dollars-goyal/articleshow/73302716.cms"> Piyush Goyal too scoffed</a> at Bezos’ $1 billion investment in the country saying, “he is not doing India a favour.” Though the minister backtracked on the snub, he also added that any curbs that they might place on India are in its best interests. Goyal and the government are probably trying hard to placate the small traders who were protesting Bezos’ visit. There may be a reason for Goyal playing hard to get. After all, India is supposed to be one of world’s largest e-commerce markets, which will scale to the size of $84 billion by 2021, <a href="https://economictimes.indiatimes.com/industry/services/retail/indian-e-commerce-market-to-touch-usd-84-billion-in-2021-report/articleshow/68169239.cms?from=mdr">according to Deloitte</a>. The government too has to play it safe since its foreign direct investments fell for<a href="https://economictimes.indiatimes.com/news/economy/indicators/indias-fdi-inflows-decline-in-fy19-singapore-replaces-mauritius-as-top-source-of-investment/articleshow/69564054.cms?from=mdr"> the first time in six years</a> in 2019. Last time this happened, the country was blamed for a policy paralysis and seems to be in similar throes this time around. Bezos finds himself in a standoff with Narendra Modi, just like the one he has with Donald Trump <div type="image" title="Untitled design (11)" msid="73436491" hostid="261"></div>

 Early last year, Amazon had to remove hundreds of thousands of products from its platform as government does not allow foreign players to sell products of companies that it has a stake in. Further, the draft e-commerce policy wants to curb foreign players with deep pockets like Amazon and Walmart-owned Flipkart from doling out deep discounts. Some of these rules not only put the early movers like Bezos at a disadvantage, but also provide a flatten the ground in favour of the likes of Mukesh Ambani ⁠— the owner of India’s biggest conglomerate Reliance Industries ⁠— who is now entering technology-related businesses. Bezos probably wanted to meet the Prime Minister to possibly appeal against the roadblocks for his <a href="https://www.businessinsider.in/apple-microsoft-aws-adobe-akamai-and-ibm-want-discussion-on-personal-data-protection-bill-before-parliament/articleshow/69768390.cms">business in India</a>. But government officials had flatly <a href="https://www.ndtv.com/india-news/jeff-bezos-india-visit-government-snubs-jeff-bezos-was-refused-appointment-with-pm-say-sources-2165509">refused a meeting</a>. Narendra Modi might have concerns other than elections and traders – his own image. BJP’s <a href="https://economictimes.indiatimes.com/industry/services/retail/after-indias-amazon-snub-bjp-slams-jeff-bezos-owned-washington-post/articleshow/73324340.cms">foreign affairs head Vijay Chauthaiwale </a>had blamed Washington Post, owned by Bezos, for unflattering coverage of India and Modi, especially with regards to <a href="https://www.washingtonpost.com/opinions/2019/08/06/this-is-modi-governments-darkest-moment/">abrogation of Article 370 </a>in Kashmir. Added to that, a Post column had also referred to Modi<a href="https://www.washingtonpost.com/opinions/2019/11/13/narendra-modi-is-indias-trump/"> as India’s Trump</a>, but not before both of them made many public appearances and Modi also called him, “a good friend”. The Post columnist said “1.3 billion Indians are seeing their freedoms erode under the autocratic rule of Modi”. This did not go down well with the government which has spent millions on Modi’s international campaign. Bezos had already ruffled a lot of feathers in his home turf after he lost a lucrative contract due to Trump’s anger against the newspaper. In India too, his fortunes might be tied to the post, if he doesn’t placate Modi, and the trading community that he belongs to. SEE ALSO <a href="https://www.businessinsider.in/retail/news/jeff-bezos-is-visiting-india-amid-protests-and-a-government-investigation-into-amazon-heres-what-his-trip-has-been-like-so-far/articleshow/73290009.cms">Jeff Bezos is visiting India amid protests and a government investigation into Amazon - here's what his trip has been like so far</a> <a href="https://www.businessinsider.in/tech/news/amazon-is-dropping-1-billion-investment-on-india-and-ceo-jeff-bezos-said-a-us-india-alliance-will-be-the-most-important-this-century/articleshow/73273556.cms">Amazon is dropping $1 billion investment on India and CEO Jeff Bezos said a US-India alliance will be the most important this century</a>

Watch: Jeff Bezos driving e-rickshaws, doing home deliveries, and chatting up Shah Rukh Khan ⁠— the Amazon top boss is going all out to get Narendra Modi’s attention

<ul><li>Around $40 billion added to RIL’s market value in the last five months. </li><li>The stock rallied RIL said that Saudi Aramco will infuse $15 billion to acquire 20% of stake in refining and petrochemical business. </li><li>Internally, the company values Jio at $65 billion and retail at $35 billion, according to J P Morgan. </li></ul> If something is too good to be true, it probably is. After Reliance Industries’ spectacular bull-run for the last three years, analysts are now waiting for the company to fulfill the promises that have brought the stock so far ⁠— around $40 billion added to its market valuation in the last five months. One of the reasons for the surge in blue-chip stocks like RIL has been the lack of options for investors. Investors, including mutual funds, have been averse to risky, small companies ⁠— allowing a premium for established names in the stock market. But that’s not all. 
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 A steady stream of positive news has helped the RIL stock. “We think investors would like to see completion of the various de-leveraging transactions - refining stake sale, completion of InvIT transactions, strategic investors in Jio/retail; that RIL initiated in the second half of last calendar year,” said a report by J P Morgan which has a neutral rating on the stock. Good news that is yet to materialise The stock rallied by a sharp 30% from August last year after chairman Mukesh Ambani said that Saudi Aramco will infuse as much as $15 billion to acquire 20% of stake in refining and petrochemical business. The timeline of this deal closure was never mentioned at the annual general meeting (AGM). And investors fear that it might not be completed in the current financial year, as it is linked to many approvals. The Indian government has already thrown a spanner in the refining sale deal over another dispute. The government is demanding $3 billion from RIL and its partners in Panna, Mukta Tapti oil fields to pay up a <a href="https://economictimes.indiatimes.com/industry/energy/oil-gas/ril-shell-ongc-asked-to-pay-3-billion-in-penalty/articleshow/59639575.cms?from=mdr">penalty </a>over profit calculation. Its July announcement of $3.7 billion infusion into telecom investment trusts by Canadian fund Brookfield is also yet to close, officially. But these delays are not affecting the positive sentiment that these large infusions have created. Meanwhile, the debt on the books has soared to ₹2.9 lakh crore or $41.2 billion. Given the uncertainties and the massive debt, a rapid rise in the share price, like in the case of RIL, would have been unlikely for any other company. Mutual funds own too many shares of RIL Parallel to the announcements, there have been significant changes in the stock holding patterns as well. It looks like most of the biggest bettors on RIL stock could be mutual funds. Their ownership of the stock is at a 10 year high at 5.5% stake in the company, according to J P Morgan. In 2019, mutual funds were underweight on the stock – which simply means, the investor is more keen to ‘sell’ the stock than ‘buy’. That is reversing now. “While on an aggregate basis, mutual funds are still under-weight the stock, we highlight that the underweight has now reduced materially and this is unlikely to be a driver of the stock in 2020,” said J P Morgan. $100 bn companies –retail and Jio There has been a steady stream of good news in both of its consumer businesses. Its retail business launched JioMart, the online grocery business. Jio too raised its tariffs which will add to its profit margin. However, investors might seek more evidence of the reasons behind the sky high valuations that the businesses command. RIL, which has plans to spin off telecom and retail businesses, had restructured them and set benchmark valuations. Effectively, they value Jio at $65 billion and retail at $35 billion, according to J P Morgan. There is a way this price for RIL can be justified. If a strategic investor, like Aramco or any other company that may invest in the telecom investment trust, is willing to pay a similar amount, that would be a vindication for people who have bought RIL shares after the recent run-up. “While there are internal benchmark valuations, we think large strategic investors buying over 10% stake in these businesses at or above the benchmark valuations would be seen positively,” the research report said. A reinforcement of valuation in times of an erratic stock market performance might give the millions of RIL’s retail investors a reason to go with the flow.

The real story behind Reliance Industries' spectacular $40 billion bull-run

The founders of Swiggy Sriharsha Majety and Nandan Reddy have something magical about them. Coming from the background of entrepreneurs, they always said entrepreneurship was always in their blood. Here are a few interesting facts about the founders of Swiggy that you might not have known but will inspire you. Harsha believes in being stubborn Stubbornness is one personality trait that Harsha believed to have shaped him. He says, “I was really stubborn about doing things that excited me and was ready to commit myself to it.” Inspired by this belief, he turned his back to the campus placement and enjoyed a year of gap before he joined IIM Calcutta. Harsha was inspired by Phanindra Sama, Founder of RedBus The amazing growth of Phanindra Sama’s concern RedBus inspired Harsha and gave him the idea that he can take a plunge into the ecommerce arena. Initially they set up a logistics company Harsha and Nandan Reddy initially founded a logistics company known as Bundle in August 2013. This is because they discovered a huge potential in the logistics and shipping sector within the ecommerce industry. They wanted to democratize shipping and intended to provide the fastest way for people to make shipments across the country. Their crucial need was to find a technology co-founder They needed a technology co-founder to make their vision into a reality. Saying that the need to find a technology co-founder is crucial for every start-up, Harsha said, “It wasn’t easy (to find a technology partner) as none of my friends were ready to take the risk and finally I had to resign to reality and got a contractor to build the product.” Their first venture could not succeed By the time they got ready with the business model of Bundl, they found that the way the ecommerce market worked had changed dramatically. Ecommerce sellers like Flipkart and eBay wanted to handle the shipping of their products themselves and this trend led to the shrinking of the market. They had to shut down their first venture within a year saying, “That’s when we knew that we had to change our focus and it wasn’t worth the opportunity cost. Thankfully, we didn’t have any employees, investors and liabilities at that time.” They learnt from failures Their failure for the first time did not put them down. Harsha wanted to turn their learning into something more fruitful. Contemplating on filling a gap they found in the market, they observed that the rationale behind founding Swiggy was, “There was no large company with ideas similar to ours and hence we saw a competitive advantage of building a hyperlocal delivery platform that moved things fast in the city.” The unique merits of Swiggy In most ways, they invented a food delivery platform that was original and incomparable with the existing ones. Establishing itself very soon as the largest online food ordering platform in the country, some of the unique merits of Swiggy include lightning fast deliveries, live order, no restrictions on order amount, and providing the comfort of giving them their most favorite food to the customers wherever they are. Read Also about other Personalities - <a href="https://www.businessinsider.in/interesting-facts-about-ola-founder-bhavish-aggarwal/articleshow/71186840.cms">Ola Founder Bhavish Aggarwal</a> <a href="https://www.businessinsider.in/10-interesting-facts-about-ratan-tata-that-you-should-know/articleshow/69914798.cms">Facts about Ratan Tata</a> <a href="https://www.businessinsider.in/interesting-facts-about-oyo-founder-ritesh-agarwal/articleshow/70417612.cms">Ola founder Ritesh Agarwal</a> <a href="https://www.businessinsider.in/unknown-facts-about-flipkart-founder-sachin-bansal/articleshow/70494717.cms">Flipkart founder Sachin Bansal</a>

Fact of Swiggy founders Sriharsha Majety & Nandan Reddy

How to check balance in Airtel

<ul><li>The 14 year old battle on defining ADR will cost Airtel and Vodafone-Idea over ₹50,000 crore in penalties and interests.</li><li>The order also technically affects 13 other telecom companies which have ceased to exist.</li><li>While a few filed for bankruptcy, others have simply shut down operations. </li></ul>It is not just Bharti Airtel and Vodafone-Idea that are affected by the Supreme Court order which went in favour of the telecom department. Ideally, other than these two companies – which were three earlier–there were 13 others who could have been affected by the order, if they did survive. Fortunately for them and unfortunately for DoT – they did not. As much as ₹38,000 crore that the telecom department is owed can never be recovered, according to a report by Spark Capital. “Recovery is unlikely from bankrupt companies given banks are already taking a haircut on such telcos,” Nitin Soni, director of corporate at Fitch Ratings told Business Insider India. One of such is Reliance Communications which is now undergoing bankruptcy proceedings. It is the only telecom company for whom the change in definition of Adjusted Gross Revenue (ADR) is known along with penalties---at over ₹16,000 crores. However, since this order came much after it went into bankruptcy, there is no way could recover it. Aircel has been fighting a losing battle with its own debt and inability to keep up its operations. Just last year, the company became defunct and filed for bankruptcy. But the company was once the market leader in Tamil Nadu and also expanded to 6 other circles. But it was hit by a controversy over its takeover by Malaysian company Maxis Communications and was heavily investigated by the CBI. By 2012, it had started scaling down its operations owing to excessive competition among other hurdles. It had tried to merge itself with many operators including Sistema, Airtel and RCom but those deals never took off. The next in line is BPL Communications which unlike other telecom companies, died a natural death. Its held licence only for the Mumbai circle which expired in 2014. While it did consider re-applying for it and also merging itself with Airtel, that was not to be. It simply stalled operations and allowed its users to port out. DoT is getting nothing from it, as no traces of this company exists now. There are many others which have been protesting against DoT’s move to charge ADR on all the revenues of a telecom company instead of those which centric to telecom operations. Some of them are listed entities like Tata Teleservices Maharashtra, and others like Tata Teleservices which also includes Tata Docomo and Tata Indicom. But these companies have since merged with Airtel and the extent of their liability and ability to pay up is not known.

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