www.businessworld.in RNI NO. 39847/81 I 07 OCTOBER 2023 THE EXPERIENTIAL With the resurgence in cinema, high-end experiences and personalisation at scale, the closestto-consumer sector is going full-steam Rs 150 ECONOMY UPTURN INSIDE:BSE’S DREAM RUN+THE WORLD CUP BOOST TO ECONOMY MANOJ ADLAKHA, Founder and CEO, RedBeryl Lifestyle Services SANJEEV KUMAR BIJLI, Executive Director, PVR INOX AJAY BIJLI, Chairman and MD, PVR Cinemas VIKAAS GUTGUTIA, FOUNDER & MD, FNP- FERNS N PETALS
4 | BW BUSINESSWORLD | 07 October 2023 “India’s marvellous growth, its rapid rise, its leadership in the world today has demonstrated the most successful G20 we have ever seen,” — US Ambassador to India Eric Garcetti speaking at the IACC WE LIVE IN EXCITING times, when India is literally reaching for the moon and mars and conquering the universe with its innate goodwill. For India now, every step needs to be measured, to ensure that we do not slip from a trajectory built assiduously over a decade. Every economic, political or even geopolitical leap has traditionally been saluted by the nation’s vibrant stock markets, as investors, foreign, domestic and retail, demonstrate their confidence in the fundamentals of the economy. This exuberance percolates through the bourses, where the share of retail or small investors have grown exponentially with the rise in disposable income of the salaried classes. A tremendous maturity in the financial markets while this suggests in a country where household savings have traditionally been ploughed into gold or landholdings, memories of the massive bull run and the stock market debacle of 1992, is bound to haunt many. As BW Businessworld columnist Srinath Sridharan says in his essay on the stock market miasma that unfolds before us, “Market exuberance, when left unchecked, can lead to speculative bubbles that ultimately burst.” While many checks and regulations on the financial markets have come into being since 1992, like the market regulator, the Securities and Exchange Board of India, so have innovators like the financial market influencers. The magical mirage that the stock markets are, is a special package in this issue. As Sridharan writes, “India’s financial landscape is experiencing a remarkable transformation, with its market capitalisation currently standing at a staggering $3.3 trillion, securing its place as the fifth most valued market on the global stage.” While a nearly $330 billion rise in market capitalisation in 2023, “is a testament to India’s economic prowess and investor confidence,” caution and a deep understanding of the forces at play are necessary now as ever before. Meanwhile, the experiential economy, which took off with the revenge spending of quarantined Indians post pandemic, got a new lease of life with the G20 summit. Travel, tourism, media and entertainment are poised to contribute significantly to the national exchequer and emerge as major employment generators in the days ahead. Outlook 2021-2025 of the PwC predicts that global spending on entertainment and media alone will rebound to $2.4 trillion by 2025. India will have its slice of that giant pie. Do read our cover feature on a nation in a mood to splurge and the magic it is about to work on the Indian economy. Of course, we bring to you, all our regular columns and features too. ANNURAG BATRA [email protected] THE SPLURGE SPREE IS BACK! EDITOR-IN-CHIEF’S NOTE
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07 October 2023 | BW BUSINESSWORLD | 7 MAILBOX YOUR COMMENTS TALK BACK www.businessworld.in RNI NO. 39847/81 I 23 SEPTEMBER 2023 As marketing becomes pivotal not only in creating brand differentiation but also in delivering business outcomes, leaders are reimagining strategies without losing focus on fundamentals INSIDE: THE GREAT MARKETING RESET ABBEY THOMAS ADITYA BABBAR AJAY DANG AJAY KAKAR AKASH DEEP BATRA AKSHAY KAPOOR ALOK MAHAJAN AMAN GUPTA AMEDEO ARAGONA AMIT TIWARI AMRITA THAPAR ANINDITA VELURI ANISH VARGHESE ANJALI GUPTA ANKIT DESAI ANSHUL KHANNA ANUJA MISHRA ANURADHA SEHGAL ANURITA CHOPRA APARNA BHAWAL APARNA GIRIDHAR ARNAB ROY ARVIND SAXENA ASHA KHARGA ASHISH MISHRA ATIT MEHTA AVNEESH KHOSLA CHANDAN MUKHERJI CHANDRAMOHAN MEHRA DAMYANT SINGH KHANORIA DEBA GHOSHAL DEBABRATA MUKHERJEE DEEPAK SINHA DEEPALI NAAIR DILEN GANDHI GAURAV SINHA GEORGE KOVOOR GIRISH KALYANARAMAN GUNJAN KHETAN GUNJIT JAIN HARDEEP BRAR HARMAN DHILLON HARSHAVARDHAN CHAUHAAN HIMANSHU KHANNA IPSHITA CHOWDHURY JAYA JAMRANI JYOTI KUMAR BANSAL KARTHI MARSHAN KAVITA CHATURVEDI KAVITHA GANESAN KUNAL DUBEY MINAL SRIVASTAVA MUSTUFA ARSIWALLA NAARAYAN T.V. NEHA AHUJA NEHA BARJATYA NITIN SAINI POOJA BAID PRASENJIT BASU PRASHANT JAIN PUNEETH BEKAL RAHUL TALWAR RAJ RISHI SINGH RANJIVJIT SINGH RAVI DESAI RAVI SANTHANAM ROHIT BHASIN ROSHNI DAS S. PRASANNA RAI SAAKSHI VERMA MENON SAI NARAYAN SAIKOT DAS SAMEER GUPTA SAMEER SAXENA SAMEER SHETTY SANTOSH HEGDE SAURABH JAIN SHARAT VERMA SHASHANK SRIVASTAVA SHIVA KRISHNAMURTHY SHOMA NARAYANAN SHOUMYAN BISWAS SHUBHRANSHU SINGH SHUVADIP BANERJEE SHWETAL BASU SIDDHANT NARAYAN SRIRUP MITRA SUDHIR MALHOTRA SUJATHA V KUMAR SUMIT MATHUR SUNAY BHASIN SUNIL GADGIL SUNIL NARULA SUNITA BANGARD TUSHAR MALHOTRA UDIT MALHOTRA VARUN KANDHARI VINAY PANT VINEETH VISWAMBHARAN VIRAT KHULLAR ZOHER KAPUSWALA IT GIANTS ON TRACK This refers to the editorial (“Mega Deals and Don’ts”, BW, September 23 ). Indian IT giants such as Wipro and Infosys have registered an impressive number of deals in Q1FY24. As the article says, Infosys signed 95 large deals, while Wipro closed 10 deals last quarter, a 9 per cent growth rate, the highest in the last eight quarters. These growth figures seem very interesting to investors aiming to bag lucrative returns in the long-term. The Indian IT sector has long been a leading runner in the country’s services sector. These companies have been bagging deals worth multi-billion dollars from Western countries. With increasing confidence in India’s IT sector from companies across the globe, there is sufficient headroom for all the companies operating in the space. NANDITA MADAN, EMAIL HUMANS OVER AI This refers to the editorial (“ Marketing Is Business, BW, September 23). Marketing is one of the verticals of business that could be untouched by technological advancements such as artificial intelligence (AI). Given the creative nature of marketing, it has always been a field for smart, bright minds that could look between the lines and capitalise on it. However, AI and similar technologies are poised to change the traditional way of marketing. Marketing has always been about emotional intelligence and connection with consumers. Even multiple research studies highlight that consumers trust human interaction more than bot interaction. No matter what the future holds, emotional intelligence is a hard nut for AI to crack. ARIJIT MALLIK, EMAIL BLIPP THIS PAGE TO GIVE US YOUR FEEDBACK INSTANTLY Submissions to BW |Businessworld should include the writer’s name and address and be sent by email to the editor at [email protected] or by mail to 74-75, Scindia House, Connaught Place, New Delhi-110001
8 | BW BUSINESSWORLD | 07 October 2023 CONTENTS VOLUME 42, ISSUE 25 07 OCTOBER 2023 EXPERIENCE UPTURN Wowing You How personalisation and immersion have become the latest buzzwords in the experience economy as it strives to pamper the consumer who is indeed the king 70 10 Jottings Much ado and then something; UPI payments rule; A milestone for pharma industry, and more 12 Columns Minhaz Merchant (p. 12); Vikas Singh (p. 14); Sreenath Shridharan & Shailesh Haribhakti (p. 18); Dhanendra Kumar (p.20); Amit Tiwari (p. 22); Kiran Karnik (p. 24); Krishan Kalra (p. 26); Sreenath Shridharan & Steve Correa (p. 28);Sreenath Shridharan & Lloyds Mathias (p. 46) 34 Meeting & Monologue Nvidia founder & CEO Jensen Huang’s recent interaction with journalists that was as remarkable for its strict dos and don’ts for the journos as it was for his insights into the promise of AI 40 Motorola’s Comeback The story of the comeback by Motorola India as a leading player in 5G and premium handsets and its ambition to be in the top three brands in the next three years 44 Baseless Charge How the allegations against Sebi that it turned a blind eye to DRI’s alerts against the Adani Group are just a lame attempt to embarrass the Modi government 48Interview Forbes Marshall Co-chairperson on the distance India has travelled since the pandemic, the possibilities, and the challenges ahead 50 Listing Season If market pundits are to be believed, in the coming months, significant momentum is expected in the Indian IPO market in the main and SME market segments 52 Stock Market & Economy How the sustainability of current high market valuations hinges on the pace at which economic reforms translate into tangible results 58 BSE’s Dream Run The story of the coming of age of India and Asia’s oldest stock exchange, of how it overcame an unfriendly regulator and NSE’s stifling hegemony 66 Interview Ahmad Luqman Mohd Azmi, CEO, Malaysia Aviation Group on Malaysia Airlines and how it is planning to operate 60 weekly flights within India by the close of 2023 72 Experiential Economy The rise of the experiential economy and how it has given birth to a new era of marketing focused on the creation and marketing of memories and experiences Cover design by DINESH S. BANDUNI Cover photographs by NAVAL KISHOR & UNSPLASH
07 October 2023 | BW BUSINESSWORLD | 9 The pages in BW Businessworld that are labelled BWi or Promotions contain sponsored content. They are entirely generated by an advertiser or the marketing department of BW Businessworld. Also, the inserts being distributed along with some copies of the magazine are advertorials /advertisements. These pages should not be confused with BW Businessworld’s editorial content. TOTAL NO. OF PAGES INCLUDING COVER 156 82 Allure of Cinemas Ajay Bijli of PVR Cinemas on the revival of cinema-going in India, strategies driving PVR’s success in an era of digital streaming dominance, and much more 88 Constant Innovation PVR INOX’s Sanjeev Kumar Bijli on the innovative strategies that have reignited the allure of the big screen 92 In Conversation Manoj Adlakha of RedBeryl Lifestyle Services on the inspiration, motivation, and unwavering commitment underpinning the art of crafting bespoke luxury experiences 98 Dream Weddings Pramod Lunawat, the architect behind some of the most breathtaking destination weddings, on how he and his team go about creating magic 102 Interview Chetan Vohra, MD, Line Communications & Weddingline on the secrets, trends and passion behind crafting dream weddings 106 Intimate Weddings Vikaas Gutgutia of Ferns N Petals on the rise of intimate weddings, NRIs choosing India as their wedding destination, and much more 120 MICE Infrastructure Naveen Kundu, Managing Director, EbixCash on the steps that need to be taken to boost India’s MICE performance 124 In Conversation Varun Khare of Paytm Insider, a key player in the event industry, on the company’s journey, strategies, challenges, and vision for the future 130 Tech Behind the Magic S. Krishnamoorthy, Founder, Xeno Reality on the transformative potential of augmented as well as virtual reality (AR & VR) 144 Photo Essay Key moments from the BW Sustainable World Conclave that saw business leaders discuss ways to achieve sustainability and decarbonisation 150 Gadgets A review of the Infinix Zero Book Ultra laptop. Read on to find out what our verdict is 110 MICE Means Business How the state-of-the-art convention centres in New Delhi signal India’s intent to be taken seriously in the conferences and exhibitions segment 112 Delhi’s New Landmarks How Bharat Mandapam and Yashobhoomi in New Delhi have put India’s capital on the world map of the Rs 25-lakh crore conference tourism space 116 G20 Boost to Tourism How the year-long events as part of India’s G20 presidency hauled travel and hotel bookings out of a long lull, while giving top chefs a global platform to exhibit their skills 154 Last Word Vivek Lohia, MD, Jupiter Wagons on strategies for expansion, international business, ties with RITES, industry challenges and more 78 YOLO FEVER The YOLO phenomenon and how it is helping boost revenues of some sectors of the economy Photograph by New Africa
10 | BW BUSINESSWORLD | 07 October 2023 JOTTINGS Photograph courtesy: PIB Photograph courtesy: PIB Much Ado and Then Something! T HE WOMEN’S RESERVATION BILL, or to be more precise, the Nari Shakti Vandan Adhiniyam 2023, was the first business of the new parliament building and was passed by a majority vote in the Lok Sabha on 21 September – with only two naysayers – and unanimously by the Rajya Sabha the day after. The Bill was a promise fulfilled after 27 years of dithering by Parliamentarians of a nation where the male population continues to be higher than that of females. According to the 2011 census, of the 1.21 billion Indians then, 51.54 per cent were males and 48.46 per cent were females. A sliver of hope for women’s empowerment is in statistics that show that the literacy rate among women has increased from 53.7 per cent since the 2001 census to 65.46 per cent in 2011. That ratio will hopefully have galloped up when the 2021 Census data becomes available. The Women’s Reservation Bill will only come into effect with the delimitation of constituencies after the next census, expected after the 2024 national general elections. So, effectively the reservation of 33 per cent of seats in the Lok Sabha (where women now comprise less than 15 per cent of the members) and the state legislative assemblies, will only show among the nation’s law-makers after the 2029 Lok Sabha elections. Women waiting in the wings to make a difference, therefore, get a six- year lead to groom themselves for a privilege that will only last for 15 years. Ironically, the last word on the Bill, just happens to be India’s first woman President, Draupadi Murmu. — Madhumita Chakraborty ON 26 SEPTEMBER, Union Health Minister Mansukh Mandaviya launched the National Policy on Research and Development and Innovation in the Pharma-MedTech Sector in India and a Scheme for Promotion of Research and Innovation in the Pharma MedTech Sector (PRIP). With a budget outlay of Rs 5,000 crores, the PRIP scheme aims to promote industry-academia linkages for R&D in priority areas and nurture the pool of scientists for quality research. A budget outlay of Rs 700 crores will be utilised to establish seven centres of excellences to strengthen the research infrastructure in the country. Another Rs 4,250 crores have been set aside to encourage research for new chemical entities, complex generics subsuming biosimilars, medical devices, stem cell therapy, orphan drugs, and Antimicrobial resistance etc., wherein financial support will be given to industry, MSME, SME and startups working with government institutes for both in-house and academic research. Industry sources have described these policy measures as an important milestone in a path to a vibrant ecosystem for R&D, enabling coordination and commercialisation of priority drugs and devices. The government incentives now steer the pharmaceutical industry toward an innovation-led growth structure from a cost-based one. India has the third largest pharmaceutical industry in the world in terms of volume and the 14th largest in terms of value. — Shivam Tyagi A Milestone in Pharma Policy
Photograph by: Amlanmathur THE UNIFIED PAYMENTS Interface (UPI) continues to dominate India ’s pa y ment landscape, in both volume and value of transactions. Unified Payments Interface transactions surged from 4.6 billion in January 2022 to a staggering 9.3 billion in June 2023, with transaction values soaring from Rs 8.3 lakh crore to an impressive Rs 14.7 lakh crore during the period. Between the first half of 2022 and first half of 2023 UPI transactions spiked by 62 per cent, reaching 52 billion. Transactions on UPI were to the tune of Rs 83.2 lakh crore by June 2023, compared to Rs 56.6 lakh crore in H1 2022. The substantial growth in UPI transactions, predominantly fuelled by Person-to-Merchant (P2M) transactions, has seen P2M transactions rise from 40.3 per cent of all UPI transactions in January 2022 to 57.5 per cent in June 2023. This trend is expected to continue. In contrast, traditional payment methods like debit and UPI RULES DIGITAL PAYMENTS c r e d i t c a r d s h a v e s h o w n different trends. The number of credit cards in use grew by 13 per cent, totalling 8.8 crore, while debit cards in use grew by only six per cent, to touch 97.6 crore by June 2023. However, card transactions in H1 of 2023 decreased by nearly nine per cent compared to H1 of 2022. Debit card transac tions plummeted by 28 per cent to 1.37 billion, while credit card transactions increased by 19.6 per cent to 1.55 billion in H1 of 2023. The total card transaction value in the H1 of 2023 was Rs 11.3 lakh crore, an 11.7 per cent increase from H1 of 2022, primarily fuelled by credit cards. Credit card transactions in the first half of 2023 jumped 30.5 per cent over the same period in 2022 at Rs 7.9 lakh crore. The value of debit card transactions fell by 14.8 per cent to Rs 3.17 lakh crore during the same period. Payments have obviously, now gone the UPI way. —Ashish Sinha CUBFit WATCH CUB KEYCHAIN Just Tap & pay PAY For Assistance, call our 24x7 Customer Care : 044 7122 5000 To Know more Scan the QR Code Non-Customers can get it by downloading the CUB All in One (Playstore/Appstore) or give a Missed Call to 88866 10805
12 | BW BUSINESSWORLD | 07 October 2023 RIME MINISTER NARENDRA MODI has set an ambitious target of making India a developed nation by 2047, the centenary of Indian Independence. The key question: what defines a developed nation? Take quantitative criteria first. A developed country should have a per capita income of at least $12,500 at market exchange rates. India’s current per capita income is just above $2,500. To raise that five times between 2023 and 2047 will need an average annual GDP growth rate of seven per cent. This is hard but doable. Simultaneously, there must be an improvement across qualitative health parameters. Nutrition levels must go up, hunger levels must go down. Inequalities in incomes must reduce. Average life expectancy should rise from the current 70 years to 80 years, the gold standard in developed nations today. Education comes next. India’s large demographic base of young people needs to get better primary and secondary education and develop vocational skills. India’s higher education, however, has improved significantly. The new education policy (NEP) allows students to mix subjects between science and humanities. This will produce more rounded adults with better job prospects. A key qualitative measure to make India a developed nation is social cohesion. Caste and religion should be made irrelevant in public life and discourse. The criminal justice system requires an overhaul to enable it to deliver fairer and faster justice. If these quantitative and qualitative criteria are met, India can conceivably emerge as a fully developed nation by 2047. If it does, it will be a unique achievement for two reasons. First, India was an impoverished nation at Independence in 1947 with a per capita income of $60. Few gave it a chance to succeed as a democracy without balkanising, torn apart by religious, caste and linguistic differences. That hasn’t happened for 76 years and is unlikely to in the next 24 years. Second, while other former colonies like Malaysia, Singapore and Indonesia have since their independence achieved a higher per capita income than India and better health parameters, India’s size distorts the comparison. India is the elephant in the race. The others are hares. They make it to the finish line first. But when India lumbers up, the difference in size and scale will be noticeable. As a diverse, noisy, combative democracy, India’s economy is often held hostage to politics. Other developing counties in Asia, Africa and South America have slipped in and out of democracy into military dictatorships after independence from colonial rule. India, with the singular exception of the 1975-77 Emergency has been a democracy with all the warts that go with it, including parliamentary disruptions and a coarsening political discourse. Throughout, however, as recent state assembly elections in Karnataka and Himachal Pradesh underscored, the transfer of power is peaceful and prompt. Behind these macro numbers lie important micro-figures that point to a better outcome for India in the coming decades than many estimate. One of the key numDeveloped India by 2047? P Minhaz Merchant COLUMN MINHAZ MERCHANT The writer is the biographer of Rajiv Gandhi and Aditya Birla and author of The New Clash of Civilizations (Rupa 2014). He is founder of Sterling Newspapers Pvt Ltd., which was acquired by the Indian Express Group
07 October 2023 | BW BUSINESSWORLD | 13 presentation, leading me to ponder the implications of implementing tidal wave of savings. “Raamdeo highlighted that over the past 25 years, India had built up gross domestic savings of approximately $12 trillion. Over the coming 25 years, this number is expected to surge to over $100 trillion. As our dependence on foreign capital reduces, the days of structural rupee depreciation may also be coming to an end. Lower and less volatile inflation in India, a weaker dollar and productivity gains in the domestic economy should combine to be less of a drag on returns for dollar-based investors.” With financial resources flowing into the broader economy, average annual GDP growth at seven per cent will be well within reach. That is the key number for India in order to achieve upper-middle income status by 2047, eliminating poverty and mitigating inequality. What about the qualitative criteria? India’s female labour force participation rate is 24 per cent as per the World Bank’s 2021-22 figures. This compares with the US female labour force participation rate of 56.5 per cent. India has much ground to cover. India’s malnutrition rate is a high 16.3 per cent against 2.5 per cent in the US. Infant mortality in India is 25.5 per thousand births. In the US, it is 5.4 per thousand births. As per capita income rises after two centuries of colonial-led impoverishment and 40 years of post-independence annual GDP growth of three per cent due to misguided socialist economic policies, India’s health, nutrition and infant mortality parameters will obviously improve. Dhiraj Nim, an economist with ANZ Research, wrote in The Economic Times: “Thanks to fortuitous global developments and timely policy action, India has embarked from a lackluster economic future to a more exciting one. However, to reach its enormous economic potential, India must undertake deeper reforms to alleviate structural constraints in the labour market and those afflicting firm-level productivity.” If those reforms take place, quickly and efficiently, India’s development target for 2047 will be met. bers that affect GDP growth – and, given a largely stable population, per capita income growth as well – is gross domestic savings. Higher gross savings feed into the economy through higher consumption and retail investment. The two form a virtuous cycle. Increasing levels of consumption drive economic growth. Retail investment in turn helps the corporate sector to invest more in the broader economy. With government capex rising sharply, private investment is primed to pick up in 2023-24. The potential for gross domestic savings growing rapidly in India is evident. Akash Prakash, CEO of Amansa Capital, addressed the question recently in an op-ed in Business Standard: “I had the privilege of attending a presentation by Raamdeo Agrawal at his conference recently. He shared some interesting statistics and thoughts on the retail equity revolution in India. It was a fascinating With financial resources flowing into the broader economy, average annual GDP growth at seven per cent will be well within reach. That is the key number for India in order to achieve upper-middle income status by 2047 Photograph by PIB
14 | BW BUSINESSWORLD | 07 October 2023 I N RECENT YEARS, the contours of the global workforce have been reshaped by the emergence of the gig economy – a disruptive force that has redefined conventional notions of employment and granted unparalleled freedom to individuals. This modern phenomenon, celebrated for its flexibility and autonomy, also presents a complex tapestry of uncertainties and vulnerabilities. In no place is this transformation more pronounced than in India, where millions of gig workers are poised to wield considerable influence over the evolving economic landscape. As we probe the intricacies of the gig economy, a nuanced narrative emerges – one that illuminates both the prospects for empowerment and the pressing need for comprehensive policies to ensure the security and well-being of its participants. Dual Nature of the Gig Economy: The gig economy’s advent heralds a profound shift in the structure of modern labour. Disrupting age-old conventions, this novel economic paradigm intertwines flexibility, autonomy, and an ever-evolving range of tasks – a siren call for a generation disillusioned with conventional employment’s constraints. The allure of boundless freedom conceals, however, the precarious existence lurking beneath. By Vikas Singh The author is an economist and columnist India, the epicentre of the gig economy’s ascent, grapples with a two-fold challenge: seizing the remarkable opportunities it presents and fashioning safeguards to shelter worker rights and economic equilibrium. Socioeconomic Ripple Effects: At the crossroads of history, India stands poised to undergo a gig economy revolution of staggering proportions, as projections anticipate a staggering 30 million gig workers by 2030. These individuals serve as architects of a reinvigorated economic tapestry, accounting for a robust 1.9 per cent of the total workforce during the 2021-22 period. Rooted in the promise of autonomy and tailored assignments, the gig economy resonates particularly with a millennial cohort that prizes skill over traditional qualifications. For these torchbearers of competency, the gig economy provides an alluring pathway to income generation. In a world where work-life integration is a coveted ideal, the gig economy emerges as an enabler. For freelancers, the boundaries between personal and professional dissolve, liberating them from the rigid confines of the traditional nine-to-five paradigm. This freedom extends to the lower echelons of the socioeconomic spectrum, affording skill enhancement and upward mobility. Liberation vs. Vulnerability: Yet, the celebratory narrative of the gig economy conceals a shadowy underbelly. The absence of the safety nets integral to conventional employment, such as minimum wage regulations and employment benefits, leaves gig workers susceptible to financial instability. Remuneration, often To fully embrace the gig economy’s potential, existing social security systems must undergo recalibration to incorporate gig workers THE GIG ECONOMY & ITS VULNERABLE WORKFORCE COLUMN
07 October 2023 | BW BUSINESSWORLD | 15 The ‘Code on Social Security’ (2020) marks a laudable stride, stipulating gig employers’ contributions to a Social Security Fund governed by a governmentappointed board. To fully embrace the gig economy’s potential, existing social security systems must undergo recalibration to incorporate gig workers. Reappraising eligibility criteria within schemes like PM-Jan Arogya Yojana and expansively revising the PM Shram Yogi Maan-dhan scheme through income threshold revision promises coverage where it’s most needed. This reconfiguration should harmonise with innovative mechanisms that weave a symbiotic relationship between corporate entities and policymakers. Crafting Unified Safeguards: The vacuum of conventional benefits mandates the institution of standardised protective measures. Universalising the practice of on-the-job accident insurance, presently offered by select corporations, emerges as a pressing need. Similarly, the contemporary trend of enlisting third-party insurers to furnish health coverage on a subscription basis warrants evolution into a holistic, budget-friendly coverage tailored to the specific exigencies of gig workers. A Symbiotic Trajectory: As the gig economy’s crescendo resounds, it is incumbent upon stakeholders to orchestrate a harmonious duet – merging empowerment and security seamlessly. India’s gig economy, in its ascent, invites a collaborative interplay among policymakers, corporations and workers. Juggling autonomy and safeguards, fostering transparent dialogues, and erecting standardised protections coalesce into a recipe for the flourishing of the gig economy. The true essence of the gig economy unfolds not only in empowerment but also in its alignment with worker security. A vibrant, thriving gig economy is one where both aspects meld, crafting a blueprint for a future of work that’s equitable, sustainable, and holistic. erratic, fosters a disconcerting race to the bottom, where undercutting becomes a necessity in the bid for assignments. Such volatility denies gig workers the security that conventional employment offers, imperilling their long-term financial health. In its fervour to expand, the gig economy has been prone to relegating worker rights and social security to the periphery. This oversight imperils livelihoods and, crucially, compromises the quality of work delivered. Balancing the scales requires a holistic approach – a concerted effort to shield the welfare and financial stability of gig workers. An Ecosystem of Empowerment and Responsibility: While companies stand to reap the rewards of the gig economy’s malleable architecture, they must simultaneously navigate the attendant challenges. The allure of specialised skills minus the overhead enticements of brick-and-mortar offices and traditional employee benefits is undeniable. Yet, the gig economy’s fluid nature can corrode loyalty and commitment, necessitating a recalibration of human resource strategies and organisational frameworks. To fully harness the gig economy’s latent potential, companies must foster a nurturing environment for gig workers, redolent of support and sustenance. In the delicate balance between flexibility and stability, employers bear the onus of communication. Transparency regarding terms of engagement, compensation blueprints, and conceivable risks empowers gig workers to make informed decisions. An avenue for professional growth and upskilling must be accessible, endowing gig workers with the dexterity to navigate the ever-evolving professional landscape. Orchestrating a Harmonious Gig Economy: As the gig economy takes centre stage, the role of policymakers assumes paramount significance. A holistic approach, diverging from the conventional contractor-employee classifications, becomes imperative in a landscape marked by burgeoning job displacement. Photograph by Indiapicturebudget
18 | BW BUSINESSWORLD | 07 October 2023 HE CONCEPT OF Environmental, Social, and Governance (ESG) has sparked a whirlwind of discussions and debates. Critics have emerged, and their voices have grown louder. So what next? It (ESG) is not only valid but desperately needed in our evolving financial landscape. Why? The formalisation of the ESG concept is a relatively recent development, with measurement and framework adoption taking place over just a few years. Reflecting on this, one cannot help but wonder: if the ESG values weren’t already enshrined in the broader fabric of human societies, we might have faced even more profound levels of anarchy and social unrest. The common criticism revolves around the diverse metrics used to measure the E, S, and G factors. Detractors argue that these metrics are distinct and cater to different needs. Well, isn’t that precisely the point? Companies are multifaceted entities, and a one-size-fitsall approach simply won’t suffice. The ESG concept acknowledges this diversity and encourages a holistic assessment of corporate behaviour. The absence of consensus on what defines a “good” or “bad” company only underscores the complexity of the business world, making ESG all the more essential. Critics also raise concerns about companies “gaming” the ESG scoring system. But should we throw out the entire hope on ESG, just because of potential loopholes in the frameworks? Credit rating agencies faced similar issues in the past, yet we didn’t abandon credit ratings altogether. Instead, we improved and refined the system and ESG deserves the same treatment. Another accusation is that investors have overhyped ESG, likening it to the past century’s financial innovations. Yes, there has been hype in the past without meaningful regulatory role, but that doesn’t diminish ESG’s legitimacy. We have seen overhyped technologies and financial products before, but that didn’t invalidate the internet or social media or the concept of business diversification. So ESG, like any other tool, needs responsible usage. Furthermore, critics argue that ESG ratings vary significantly between vendors, making it challenging for investors to construct reliable portfolios. This variation, however, highlights the need for standardisation and transparency in the ESG rating industry, not the abandonment of ESG principles. It’s a call for improvement, not a condemnation. Lastly, some investors place their trust in regulators and institutions rather than corporate CEOs. While this trust is vital, it’s not ESG’s role to replace regulators. Environmental, Social and Governance complements their efforts by providing a means for investors to align their values with their investments. Regulators must strengthen their capabilities, but this doesn’t diminish the need for ESG as a valuable decision-making tool. Critics argue that ESG focused investments have not consistently outperformed T ESG Will Improve, With Cynicism, Critics & Critique (A)muse & Musings by Srinath Sridharan & Shailesh Haribhakti Photograph by Stockwerk / Photodesign
07 October 2023 | BW BUSINESSWORLD | 19 nuances of diverse social and cultural norms, capturing what constitutes acceptable good behaviour across different contexts. This adaptability and inclusivity are crucial for ESG to serve its purpose effectively in our ever-evolving world. Indeed, calling it quits on ESG at this stage would be profoundly premature and a disservice to society as a whole. The philosophy underlying ESG, which emphasises not just being profitable in financial terms, but also doing good for the planet and society, is an imperative for our times. First and foremost, the urgent need for ESG is rooted in the challenges we face today. Climate change, social inequality, and corporate misconduct are pressing issues that require immediate attention and ESG offers a structured approach to addressing these challenges. It prompts companies to consider their environmental impact, contribute positively to society, and uphold strong governance practices. Without ESG, these issues could continue to escalate, with potentially devastating consequences. Furthermore, ESG aligns with changing consumer and investor preferences. A growing number of consumers want to support businesses that share their values and prioritise sustainability. Investors, too, are recognising that ESG factors can impact a company’s long-term financial performance. As a result, companies that embrace ESG principles are more likely to attract capital and customers, giving them a competitive advantage in the marketplace. Environmental, Social and Governance also fosters innovation and resilience. Companies that integrate sustainability into their strategies are often better prepared to adapt to changing market conditions and regulatory requirements. They are more likely to invest in innovative technologies and practices that can lead to long-term cost savings and revenue opportunities. In this sense, ESG is not just a set of checkboxes but a catalyst for positive change and long-term value creation. Srinath Sridharan is an author, policy researcher & corporate advisor Shailesh Haribhakti is an independent director on corporate boards The philosophy underlying ESG, which emphasises not just being profitable in financial terms, but also doing good for the planet and society, is an imperative for our times traditional investment options, questioning the effectiveness of ESG as an investment strategy. However, it’s essential to recognise that ESG’s primary goal is not solely to maximise financial returns in the short term. Instead, it aims to deliver sustainable and responsible outcomes over the long haul. Investing in ESG is about aligning investments with values and contributing to a better world. It promotes responsible business practices, helps mitigate risks, and contributes to a more sustainable future, which, in the long run, can yield significant benefits for both investors and society as a whole. Critics who rush to judgment on ESG’s effectiveness based on a mere decade of financial data are not only shortsighted but fundamentally misguided. Measuring ESG is still in its evolutionary phase, and its global adoption is marked by significant asymmetry and regulatory disparities. To dismiss ESG’s potential impact on investments based on this limited timeframe is akin to writing off the internet in its early dial-up days or declaring electric cars impractical in their infancy. The global landscape of ESG measurements remains inconsistent, with varying standards and methodologies across different regions. This creates an environment where ESG arbitrage across regulatory boundaries can occur, causing discrepancies in reported performance. Such disparities can cloud the true potential of ESG investments, making it crucial to allow more time for standardised and harmonised ESG metrics to develop. A meaningful ESG rating system should be capable of delicately balancing the Photograph by Elnur
20 | BW BUSINESSWORLD | 07 October 2023 UOYED BY THE SURGING sentiments on India and the Indian economy, strong growth and updates of India Inc. and rising optimism over global cues and close on the heels of the glorious success of our Chandrayan-3 mission and global accolades on the spectacular G-20 meetings, Indian markets are touching new peaks. The BSE Sensex has recorded its longest gaining streak since 2007, adding Rs 14 lakh crores in just 11 sessions. Even on days when foreign investors book profits and pull their money out, domestic investors and mutual funds keep the markets buoyant. Famed US investor Peter Lynch in his celebrated ‘20 golden rules for investing’ opined that ‘you (investors) have to know what you own, and why you own it?’ True to this, investors rely on their perception and the public domain information to make investment decisions. At any point, a stock is awarded higher valuations if investors have confidence in the company and its management. A consistent year-on-year price growth is thus a strong indicator of the market’s trust. It can be reversed only due to a black swan event, economic meltdown, or a material event outside the company’s control. Similarly, a ploy, a concerted effort, or a criminal meddling may act as a reversing factor. Value Erosion for Investors Recent events concerning the Adani Group are an example of the above. The release of the Hindenburg Report in January and another one by the Organized Crime and Corruption Reporting Project had led to a significant value erosion for Indian investors. As per the report of the Hon’ble Supreme Court appointed Committee, the maximum B COLUMN / THE STOCK MARKET MIASMA Protect Indian Investors loss for Indian investors between 24 January and 27 February was approximately Rs 29,200 crores. The committee submitted its first report while the SEBI is investigating other matters including the role of foreign portfolio investors. The SEBI informed the Hon’ble Court that it is awaiting information from five tax havens. The matter is fixed before the court on 13 October. According to earlier media reports, the Enforcement Directorate (ED) had concluded, after a preliminary investigation into the Hindenburg Research report and the subsequent market crash, that a dozen companies, including foreign portfolio investors and foreign institutional investors (FPIs/ FIIs) based in tax havens were the “top beneficiaries” of short selling in shares of Adani Group companies. According to the report, the Enforcement Directorate told the SEBI in July that some of these short sellers allegedly took positions two-three days before the Hindenburg report was published on By Dhanendra Kumar
07 October 2023 | BW BUSINESSWORLD | 21 the open, needing suitable regulatory correctives. Finance Minister Nirmala Sitharaman in a recent interview highlighted the role of SEBI in addressing issues of manipulative actions like short selling. She expressed that effective use of regulatory tools could contribute to enhanced corporate governance, which benefits India’s economic landscape. While the matter may reach its logical conclusion after consideration by the Hon’ble Supreme Court, an important fact needing strong emphasis is that these developments significantly impact retail investors, market sentiment, and the economy. While freedom of expression entails that the stakeholders be entitled to articulate their opinions, they must do so with a sense of responsibility considering the ramifications on the markets and common investors and avoid breaking their trust and confidence by external factors. Misinformation and rumours can shake the confidence of investors, disrupt the markets and the broader economy. It may lead to misguided or nervous exits, causing extreme volatility and loss of faith in the institutions. Domestic and foreign investors may follow suit, becoming hesitant to commit long-term capital when India needs it to fuel its growth. Continuous speculation erodes investor confidence, who may question the market’s integrity and stability by unwarranted sensation in some instances. If recent events are any guide to the market’s strength, there is a need to act swiftly to protect the stakeholders. With the economy doing so well on all fronts, and when India is firmly poised to emerge as the third largest global economy, it is imperative that rumours are not allowed to be the chinks in India’s economic armour. Regulators, institutions, the government, and courts must promptly and effectively intervene in the interest of stability and resilience of the Indian markets so that matters attend finality and investors move ahead. India has an established and widely respected rule of law, strong and vibrant institutions with credibility and public trust. Disruptions and uncertainty can hinder India’s progress toward becoming a vibrant, developed, and progressive economy. These matters must be looked at from the perspective of legality, public interest, and effective regulatory surveillance to ringfence the markets from being rocked by unscrupulous elements, safeguarding the interest of common investors. 24 January. The report said that three of the 12 short sellers are based in India, adding that one is the Indian branch of a foreign bank. Four are based in Mauritius and one each in France, Hong Kong, Cayman Islands, Ireland and London. Divergent Views This series of events presents an interesting picture. There are elements interested in rocking the boat aimed at making a kill, at the cost of market investors. On the other hand, there are other investors like GQG Partners and Qatar Investment Authority who continue to have confidence and trust in the Group’s business and have made strategic investments. While some investors and at certain times the market remain bullish notwithstanding the seriousness of allegations against the Adani Group, the surrounding market backlash needs a better analysis. If the allegations are indeed proven, then action by the regulators and the government is bound to follow. If there is no adverse conclusion, then the real intention of those interested agencies with their motives would be brought into Continuous speculation erodes investor confidence, who may question the market’s integrity and stability by unwarranted sensation in some instances. If recent events are any guide to the market’s strength, there is a need to act swiftly to protect the stakeholders The author has been India’s Executive Director at the World Bank & first Chairman of the Competition Commission of India. He is currently Chairman of Competition Advisory Services (I) LLP) Photograph by Beautiful Blossom
22 | B W BUSINESSWORLD | 07 October 2023 MARKETING AND ADVERTISING AmitScope NCE UPON A TIME, marketing was a cutthroat industry where those with a solid technical background had a significant leg-up on the competition. You could create a chatbot if you knew how to code. Although marketing competition is still present, Martech tools have leveled the playing field by eliminating the need for coding. Now, even those who do not know how to code can create websites, launch chatbots, and analyse complex data. In addition, the use of martech tools has allowed the next generation of marketers to speed up the production of high-quality content. The no-code approach works amazingly well for the marketing function because, in most cases, marketers have a clear idea of what needs to be done and can do it on their own terms without having to ask for assistance from others. There are a wide range of apps that can be built with no-code, from Customer Data Management Apps to Lead Management to even Digital Asset tracking. Imagine a drag-and-drop interface for viewing and dividing data. After selecting which pieces of information are of most interest, the user can apply filters (such as “only contacts who have purchased within the last six months and have spent more than Rs 1500”) and hit “Go.” The platform generates code (typically SQL) in the background to query a specially created and exposed database and return the results. The code is still present, O but the user was not responsible for its creation. THE BUZZ TODAY Artificial intelligence has made no-code a big deal today. While advancements in AI and ML over the past few years, as well as wider availability, are not the only factors responsible for no-code’s meteoric rise, they have nonetheless greatly improved the technology’s efficacy. This is especially noticeable in MarTech’s content creation capabilities. Previously, a creative expert had to design and build each image, banner, and button used in marketing creatives. A marketer can now use a plainlanguage typing interface on an AI content generation platform to tell it exactly what they want. The requested content will then be generated in multiple variations by the platform in a matter of seconds. Similarly, addressing specific segments of a population is now as easy as typing or talking normally. In order for an AI platform to query the data and return a result to the marketer, the data simply needs to exist. Additionally, depending on the advertised topic or product, AI can offer guidance and suggestions for segmentation. Once the marketer inputs the campaign’s objectives, the platform will immediately begin identifying, recommending, and creating the segment. There are two major ways in which no-code will enhance marketing: u Putting control in the hands of marketers expedites and simplifies marketing. v Allowing specialists more time to improve marketing materials, models, and tactics. WHAT TO WATCH OUT FOR While there are many benefits to using a low-code or no-code platform, there are also some drawbacks. The tools may cause an unhealthy dependence on the low-code or no-code provider. Simple integrations of workflow processes with cloud services have proven successful, but the technology may falter when applied to more complex endeavours. As citizen developers rapidly release applications, security and governance of low-code implementations may be compromised. It is an exciting time to be a marketer right now. To better understand customers and prospects, construct and optimise customer automation journeys, and generate visually inspiring content, marketing users will continue to benefit from the rise of no-code tools. It will allow them to track their key performance indicators and make rapid adjustments to their marketing campaigns. All of this will happen faster and easier than ever before. The author is Global Head, Marketing Demand Center, TCS How No-Code is Transforming the Marketing Landscape By Amit Tiwari
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24 | B W BUSINESSWORLD | 07 October 2023 RGANIC IS NOW in fashion. “Nothing synthetic” is a salesdriver for foods, as is “natural”. Yet in a different sphere, its antonym, artificial, is the flavour of the year. Artificial intelligence (AI) experts are now rock stars, with companies falling over each other as they indulge in a bidding war for recruiting AI talent. No wonder everyone wants to study AI, leading to high demand for IT courses (especially those claiming to specialise in AI). As a result of perceived trends, demand for STEM courses is booming. It used to be mainly for the T and E part, representing technology and engineering, because it was the passport to jobs in the IT industry. With the earlier boom in demand for data analytics specialists, and now for AI, M (mathematics) too is favoured. Science, the S in the acronym, yet has limited traction. However, one sees early signs of how India’s space programme – which has caught the imagination of youngsters – is giving a boost to science courses too. AN ERA OF STEAM In contrast, one sees – especially in technologically advanced countries – an increasing demand for liberal arts and humanities. Many now advocate the addition of Arts in the acronym, transforming it to O STEAM. This is the result of a growing understanding that advanced AI, including generative AI and other new technologies, will require expertise beyond the standard STEM disciplines. All indications point to increasing demand for disciplines like sociology, psychology, and philosophy. Economics has, of course, had a steady demand. And let’s not forget history: all the re-writing now underway will surely provide good jobs to very large numbers of historians. After all, there is 5000 years of history to be rewritten! THE HUMAN MIND REMAINS AN ENIGMA Artificial Intelligence can help generate sophisticated models, including predictive ones – for example, of buying behaviour. However, creating and drawing deep insights from these data-based models will require inputs and guidance from sociologists and psychologists: experts who understand behaviour in groups and societal contexts, as also individual reactions. Such models, it is feared, may be used to also influence voters and election outcomes. Further, as global concern about generative AI mounts (and about genetic engineering), there will be questions about ethics and the need to formulate guard-rails, guidelines, and regulations. Inputs from philosophers (and legal experts) will be essential. Countries and individual companies will need to hire many specialists from these disciplines. In a related area of Arts, there will be demand for artists and creative people, particularly as more products emerge from India. This is essential if we are to capture more from the overall value chain. Products like Apple’s i-phone are good examples: the maximum share of the value is attributable to design, marketing, and branding. It is the aesthetics, look and feel (apart from the marketing-created brand status) that differentiates it from what is otherwise a commodity product. One can safely assert that its premium in the marketplace (and the company’s trillion-dollar valuation) derives substantially from the work of its designers and marketeers. The future, then, for tech companies and job seekers is not limited to IT, or even to STEM. It will have to include a strong component (many employees) from the humanities and liberal arts. Who knows, in years to come, headline-making compensation packages (and global fame) may go to those from these disciplines. The Importance of Arts By Kiran Karnik The author loves to think in tongue-in-cheek ways, with no maliciousness or offence intended. At other times, he is a public policy analyst and author. His latest book is Decisive Decade: India 2030 Gazelle or Hippo (Rupa, 2021) COLUMN n KIRAN’S KONTRARIAN KORNER n
07 October 2023 | BW BUSINESSWORLD | 25 HE INDIAN CANCER Society (ICS) was set up in 1953 by the eminent surgeon, Dr Jussawala, of the Tata Memorial Hospital Mumbai. The farsighted surgeon saw that while competent doctors treated the unending stream of patients with great empathy, they could not hope to defeat the disease without addressing the twin issues of Cancer Awareness and early Primary Preventive Screening. He knew that most Indians looked at cancer as ‘wrath of God’ and a ‘stigma’ and thought it best to keep quiet about any unexplained symptoms and, so, large numbers lived with pain and died without ever seeking help at a hospital. The prohibitive cost of treatment was another factor for this societal behaviour. The ICS vision was to become a Beacon of Hope for the suffering millions, by making them aware about the benefits of early screening, helping those with early symptoms get the best treatment at reasonable cost. They explained that ‘cancer is not a death sentence and most cancers – if detected early – are curable. Public Spirited Persons The Delhi Branch of ICS was established in 1984, by a group of public spirited persons; the visionary K. K. Mehta led the way with his ‘never say die’ attitude. The ICS-D started with a well-conceived Awareness Campaign and a Screening Centre. Talks by distinguished doctors and dedicated volunteers were conducted at every possible venue and by 1991, it became the leading support group for patients. Harmala Gupta set up Cancer Sahyog and encouraged survivors like herself to join. They were the true saviours for patients, first at AIIMS and now extending to 15 hospitals in the NCR. These survivorvolunteers continue to be the backbone of the society. Harmala would later establish CanSupport, an independent homebased palliative care programme covering several states. CanKids – Focused on Children Another leader at ICS-D, Poonam Bagai, set up CanKids, another fine outfit focused on children. The ICS-D had thus become a sort of nursery that nurtured admirable talent and commitment. At ICS-D Prashanti and Jagriti followed Sahyog in quick succession. In 2001, Cancer Sahyog encouraged other Emotional Support Groups across the country to join hands and started Cancer Care India (CACI) which is now a conglomerate of some 30 organisations. An assistance programme regularly extends considerable financial aid to under-privileged patients, by way of protein supplements, prosthetics and other necessities. Training programmes of ICS-D have now spread to other parts of India and even Sri Lanka. The great society continues to grow, especially in the field of Awareness with an e-learning course on Cancer Fundamentals to which over a dozen senior oncologists contribute with their time and expertise. The last addition, in 2021-22, a Faculty Development Project – that draws highly experienced distinguished master trainers from all over the country – trains a large number of students to spread the message about cancer, is doing exemplary work in carrying forward the mission of ICS-D. And, in this digital age, a mobile app in five languages is under development for release by the end of 2023. Here’s yet another champion of ‘inclusivity’ lending a broad shoulder to those suffering from cancer and unable to get proper guidance, treatment and counselling; under the leadership of the indefatigable Jyotsna Govil who was persuaded by Dr Jassawala, way back in 1985, to join ICS-D and continues to devote her life to the noble cause. Sadly, numbers of people afflicted with cancer are humungous and we really need many more organisations to step in and help. T Inclusivity By Krishan Kalra Column The great society continues to grow, especially in the field of Awareness with an e-learning course on Cancer Fundamentals to which over a dozen senior oncologists contribute with their time and expertise. The last addition, in 2021-22, a Faculty Development Project The author is Member, National Advisory Board, Sarthak and President, National Abilympic Association of India (NAAI) Indian Cancer Society - Delhi
26 | BW BUSINESSWORLD | 07 October 2023 Please tell us about Blue Star Engineering & Electronics , its other divisions, its business, its turnover, number of people, etc. Does Blue Star Engineering & Electronics already have a presence in warehouse automation solutions or is it a new business that it is entering? Blue Star Engineering & Electronics is a wholly owned subsidiary of Blue Star , which is an Indian engineering conglomerate with a turnover of around US$ 1 billion. Over the last six decades, Blue Star Engineering & Electronics has provided technologically advanced systems and turnkey engineering solutions tailored to cater to a diverse spectrum of industries throughout the country. We have a nationwide presence with four regional offices and 31 sales and service offices, extending to Tier-3 and Tier-4 cities. Some of our lines of business (LOBs) include MedTech Solutions, Data Security Solutions, Material Testing Systems, NDT Solutions, Metrology Solutions, Warehouse Automation, and Electronic Solutions. We employ around 250 people. Blue Star has a 30-year presence in testing and measurement, where we have served various industrial customers, focusing on automation. In industrial and warehouse automation, we initially specialised in high-speed Bagging Automation for the petrochemical and chemical industry. Five years ago, we expanded into Automated Truck Loading Systems. We have now expanded our offering to complete our range of systems that cover automation solutions across intra-logistics and warehousing. What is the estimated size of warehouse automation market in India and at what rate it is growing? Demand for warehouses has grown rapidly post introduction of GST, growth of e-commerce sector and investments by private equity firms. Further, Grade A warehouses that are ideal for automation are becoming more common. Increasing scale of warehouse operations, due to robust consumption demand and GST led consolidation is driving demand for automated solutions that provide better inventory management and operational excellence. The Indian warehouse automation market is estimated at around Rs 2,500 crore and is still at a nascent stage. Robust intra-logistics and distribution processes backed by the right type and level of automation are important to achieve manufacturing and supply chain excellence. Warehouse automation is a critical enabler for manufacturing “Our Collaboration With Gebhardt Has Strengthened Our Capabilities” Q & A Prem Kalliath, Chief Executive Officer - Blue Star Engineering & Electronics and Volker Nicolai, Chief Revenue Officer - Gebhardt Intralogistics Group at the announcement of their partnership for warehouse automation solutions.
07 October 2023 | BW BUSINESSWORLD | 27 and supply chain teams to deliver on these expectations and will consequently see high growth. Our expectation is that the market will more than double in value within the next five years. You have mentioned that Grade A warehouses are ideal for automation. What are the requirements for Grade A warehouses? What is the estimated size of Grade A warehouse market in India and the estimated growth rate? What percentage of Grade A warehouses go for warehouses automation? Grade A warehouses are particularly well-suited for automation. These warehouses have towering structures, often exceeding 11 metres in height. This vertical space optimisation is a critical factor. Additionally, Grade A warehouses boast carefully designed flooring that ensures the seamless movement of goods and equipment, facilitating efficient operations. They are also equipped to handle 40- foot trailers adeptly, simplifying the loading and unloading processes. Safety is paramount, with features like firefighting systems and comprehensive CCTV surveillance in place. The layout and design of Grade A warehouses are meticulously crafted to accommodate automation systems, enhancing overall operational efficiency. In India, there has been substantial growth in Grade A warehouses, accounting for 60 per cent of warehouse transactions, spanning both Tier-1 and Tier-2 cities. Notably, third party logistics (3PLs) contribute 40 per cent to this space, around 20 per cent comes from the retail and e-commerce sectors, with manufacturing comprising the rest. The surge in demand for Grade-A warehouses has been driven by factors like e-commerce expansion and the growth of organised retail. 3PL companies, which are already using software and analytics to improve productivity and meet enhanced customer service levels, are fully embracing automation. Furthermore, new greenfield manufacturing projects are also strategically designing warehouses to incorporate automation. You have tied up with Gebhardt of Germany. Any reason that you chose Gebhardt? Besides our similar cultures, we are drawn to Gebhardt for their broad solution portfolio and extensive experience in successfully executing large integrated projects across diverse sectors like manufacturing, e-commerce, and 3PL. Their offerings cover storage, conveying, and sorting for pallet loads as well as light goods. They focus on providing integrated engineering solutions rather than just selling products. Furthermore, Gebhardt’s commitment to R&D, consistently bringing innovative technologies and systems to the market, aligns well with our forward-thinking approach. Tell us about Gebhardt, their operations, their manufacturing facilities, etc. Gebhardt is a German company founded in 1952 with more than 70 years experience mainly in the European and North American market. They have over 900 employees and a turnover of around 200 million Euros. They have production facilities in Germany, UK and the USA and subsidiaries in UK, Sweden, Denmark, Switzerland, Australia and the USA and are partnering in the Middle East, South America and now in India with Blue Star. From picking and sorting, packing and shipping, transport to storage systems, Gebhardt offers intralogistics solutions in order to provide improved material & logistics flow. You mentioned that your tie-up is a ‘strategic alliance’. Is it just a technical collaboration or is there any investment that Gebhardt is making in India? What are the financial terms of your tie-up with Gebhardt (technology fee payable, royalty, etc.)? Gebhardt and Blue Star are independent entities joining forces to tap into the Indian market. We’re in the initial stages of exploring the market, and the agreement outlines our commitment to providing the market with the best technologies and solutions. We will continue to evaluate further co-operation driven by the needs of our customers. Could you share some details regarding the automation solutions that you would be offering to the Indian warehousing industry? We specialise in delivering comprehensive solutions to automate material storage, handling, and movement across various industries in India. Our collaboration with Gebhardt has further strengthened our capabilities in this regard. Our portfolio encompasses a wide range of systems, including material storage & handling, order fulfillment, material movement, truck loading, warehouse management and control software, primary and secondary packaging, palletisation, and traceability solutions. What is the value proposition you will bring to the table that will distinguish your offerings from that of the competition? In a fragmented market, where very few global or local companies provide comprehensive turnkey solutions, Blue Star together with Gebhardt offers an integrated end-to-end offering that covers all the warehouse process from in-bound, palletising, storage, order fulfilment and dispatch. Delivering on customers needs is achieved through solutions designed with a balance on hardware & software systems and optimised intra-logistics and warehouse processes. Through a hybrid ‘Global + Local’ approach together with our partner, Blue Star is confident in its ability to emerge as a leading player in the Indian warehouse automation market.
28 | BW BUSINESSWORLD | 07 October 2023 of self-discovery and self-confidence became the cornerstone of his reign. In the ever-evolving landscape of leadership, one timeless truth remains: effective leadership begins with a deep sense of selfawareness and self-confidence. In the 21st century, the traits of self-awareness and selfconfidence have become not just desirable but critical for effective leadership. The rapid pace of technological advancements, global interconnectedness, and the emergence of unprecedented challenges demand leaders who can adapt, innovate, and make principled decisions in a constantly shifting landscape. When these two qualities are nurtured and developed, they contribute significantly to a leader’s success in guiding their organisation toward its goals. Self-awareness enables leaders to navigate complex interpersonal dynamics, foster collaboration, and connect with diverse teams. At the same time, self-confidence empowers them to lead with conviction, even when faced with ambiguity and uncertainty. In this era of constant change, leaders who possess these foundational traits are not only better equipped to guide their organisations and communities but also to inspire and empower others to rise above challenges and seize opportunities in a dynamic and unpredictable world. Self-aware leaders are authentic and genuine in their interactions. They are comfortable with who they are and do not try to be someone they’re not. This authenticity fosters trust and credibility among team members. A self-confident leader doesn’t waver in the face of adversity or criticism. They are unafraid to make tough decisions when necessary, knowing that their choices align with their beliefs and values. This unwavering confidence hivaji (Maharaj), in the 17th Century, as a S young leader aspiring to establish a Maratha kingdom, faced the formidable Afzal Khan – a ruthless adversary, dispatched by the Adil Shahi dynasty to crush Shivaji’s burgeoning rebellion. Through introspection, Shivaji found self-confidence rooted in self-awareness. He donned distinctive attire and prepared to face Afzal Khan, who underestimated him. He delved into his soul, seeking clarity amidst the storm of doubts. He realised self-confidence was not a mere façade but an embodiment of his experiences, values, and unwavering commitment to his people. As the day of reckoning approached, Shivaji emerged, donned in a war turban adorned with intricate patterns, and carrying a ‘bichwa’ dagger. His attire symbolised his Maratha identity, radiating an air of unshakable determination. When the two adversaries met, Afzal Khan, oozing arrogance, sought to intimidate Shivaji with his imposing stature. Yet, Shivaji stood undaunted, his newfound self-confidence emitting a palpable force. In a cunning move, Shivaji embraced Afzal Khan and fatally struck him, revealing his self-assured leadership. This victory solidified his legend and propelled him toward establishing a powerful Maratha empire, driven by his commitment to his people’s welfare. His journey Self-Awareness and Self-Confidence. Core of Leadership PEOPLE TALK By Srinath Sridharan & Steve Correa Photograph by ColorBolt “The first step toward change is awareness. The second step is acceptance.” — Nathaniel Branden
07 October 2023 | BW BUSINESSWORLD | 29 trospection, and the tendency to avoid discomfort. It requires introspection, feedback, and a commitment to personal growth. Leaders can engage in mindfulness, journaling, and seeking feedback from peers and mentors to deepen their self-awareness. Confidence can be nurtured by setting and achieving small goals, celebrating successes, and learning from failures. This holds immense relevance for the burgeoning population of youngsters who constitute a significant portion of the Indian workforce. In a rapidly evolving talent market, where innovation and adaptability are paramount, self-awareness and self-confidence are indispensable for young professionals. As they embark on their careers, they often encounter situations that require them to assert themselves, navigate complex workplace dynamics, and make decisions with conviction. Moreover, in a world marked by digital interconnectedness and global competition, the ability to understand their strengths and weaknesses, as well as how others perceive them, can be a gamechanger. Youngsters who cultivate these traits not only stand out as leaders but also excel in collaborative endeavours, driving innovation and progress in their organisations. In essence, self-awareness and self-confidence empower the youth to not only thrive in their careers but also become catalysts for positive change in India’s workforce and beyond. can help a team weather a storm and stay on course, even in the most uncertain times. However, there can be a lack of confidence at times. For instance, when someone is in a new role an ‘Impostor syndrome’ often surfaces. This can include starting a new job, being promoted to a leadership position, or entering a different field of study. The uncertainty and unfamiliarity of these situations can trigger self-doubt. It is not surprising to feel nervous. In these new roles, the incumbent may perceive a significant gap between their current knowledge and skills and what they believe is expected of them. This gap can be real or imagined and is often exaggerated by the individual’s critical self-assessment. Here, being Self-aware (acknowledging your feelings of self-doubt, recognising that it’s a common experience, and reframing your thoughts to focus on your accomplishments and strengths even while seeking mentorship and support from others) can boost Self-confidence and help overcome the impostor syndrome. Selfefficacy, a concept introduced by psychologist Albert Bandura, is closely related to selfconfidence. Research has demonstrated that individuals with high self-efficacy tend to have greater self-confidence in specific domains, as they believe in their ability to accomplish tasks and overcome obstacles. Tasha Eurich, an organisational psychologist and author identifies two types of selfawareness: Internal Self-Awareness: This refers to understanding our thoughts, feelings, values, and passions. It involves introspection and self-reflection. External Self-Awareness: This involves understanding how others perceive us. It includes being aware of our impact on others, as well as seeking and accepting feedback from others. Interestingly, she refers to the Self-Awareness Blind Spot which occurs when individuals believe they are more self-aware than they are. Many people overestimate their level of self-awareness, and this can hinder personal growth and success. Towards Developing Self-Confidence Developing self-awareness and self-confidence is not an overnight process. People have barriers including fear of feedback, lack of inSrinath Sridharan is an author, policy researcher & corporate advisor Steve Correa is an executive coach, OD consultant & author A self-confident leader doesn’t waver in the face of adversity or criticism. They are unafraid to make tough decisions when necessary, knowing that their choices align with their beliefs and values. This unwavering confidence can help a team weather a storm and stay on course, even in the most uncertain times Photograph by Reality Images
30 | BW BUSINESSWORLD | 07 October 2023 HEN DID you last go to a bank physically to do a transaction? The chances are it’s been a long time. Such is the power of digital that has put banking at our fingertips and empowered customers and businesses to do financial transactions ‘on the go’ anytime and anywhere. Today we have a digitally empowered robust and reliable banking system that runs 24/7. But, of all the verticals, banking, given its inherent complexities, is also rife with challenges when it comes to manifesting digital outcomes. Moreover, it is also one of the most regulated industries in the world and in India. This backdrop inspired this edition of Master Strokes that celebrates transformation leaders who had pivoted technology in their organizations for greater operational efficiencies and business outcomes. The Balancing Act It is well-known that most digital transformation projects do not meet expected outcomes, because of the disconnect between strategy, requirements, compliance, and execution. Hence a judicious blend of technology vs. requirements powered by an actionable execution strategy is the key. How do successful banks achieve this? Given the unprecedented pace of changes and ever-changing customer requirements, let’s look at YES BANK and how it has achieved digital success. Setting the tone and context of the digital dynamics in the banking space and how YES BANK has embraced digital, Mahesh Ramamoorthy, CIO, YES BANK, W Towards a Holistic Digital Banking Transformation in the Age of AI AI is an excellent opportunity for banks, a great opportunity to create more secure engagements with the customer and better manage risk
07 October 2023 | BW BUSINESSWORLD | 31 MASTER STROKES says, “Given the current landscape, the customer is at the epicenter of any transformation. So, the overarching goal of any transformation is to address the customers’ needs, wants, and aspirations. If you give them a seamless and neat experience and a consistent quality of service, it brings up operational efficiencies and customer experience”. We live in an age of instant gratification, says Mahesh. “Our emphasis at YES BANK is to sense the customers’ expectations and seamlessly blend technology that enables it. We need to give our customers a consistent and reliable user experience. For instance, the entire navigation has to be slick and simple when they visit our website. We are looking at capabilities that foster greater user experience and customer satisfaction.” The second point Mahesh stresses is that when you get into this onboarding journey and use digital tools that are currently available, it’s about how you integrate it with data. Data will be essential because there will be many expectations from every bank and every customer. How do you use their data constructively to help them nudge or move in the right direction? That’s how we must look at it. Mahesh also touched on a pertinent point, a bank is all about trust and safety, and any deficit has multi-pronged ramifications. So, risk management and compliance with regulatory requirements are vital in what they do. “So, we are very clear that risk management is right on top and a priority prerogative that every Bank needs to go through and right there with the regulators”, adds Mahesh. YES BANK is a relatively young organization, having been in the space for about two decades, and this, when compared to the PSU banks, which have the legacy baggage, so they faced an extra layer of complexities on their road to digital. But Mahesh firmly believes that a trusted transformation partner is essential to digital success. Managing Transformation Pangs When you take on that thought of a trusted digital partner, organizations like IBM, with a rich legacy dating back to 100 years, have seen the very genesis of computing into what it is today. Reflecting on this, Vishwanath Ramaswamy, Vice President, IBM, says, “We have seen the banks transform and industries transform, especially banks, into technology organizations. One thing that is certain in 2023 is uncertainty. So how do we navigate this? We must be nimble, agile, and willing to adopt progressive technologies like AI to hybrid cloud. Some are new, some not so, but on a steep adoption curve”. Vishwanath avers that today the entire pivot has changed as AI is recasting things and changing the very tenor of digital. It will be a seamless confluence of data, automation, and process modernization. One of the areas of digital success is the ability to strategically shift to the next level of technology maturity and amplify business objectives for more significant outcomes, which also makes for convincing RoI. When we look at our technologies within IBM, whether we talk about cloud or data or automation or security, there are generative AI models which are part of these technologies. Mahesh Ramamoorthy, CIO, YES BANK
32 | BW BUSINESSWORLD | 07 October 2023 Hopping onto the AI Bandwagon Now with the whole conversation on AI and how Generative AI will impact organizations, let’s see how banks are gearing up and putting in place a strategy to harness the full benefits of AI. YES BANK has been a pioneer in embracing chat-related engagements years ago. Since then, we have indeed come a long way with our bots. But now, with the evolution of experience and expectations, we are evolving to the next level. One of the critical areas we are focused on is data. Data, when used with the correct levels of understanding, lead to the proper outcomes, and with the advent of AI getting mainstream, it’s going to get better. To that end, we have invested in the right tools and skills to help us harness data-driven insights using AI and how it can help us mitigate risk, among others. I would say that there is a shift happening right now with AI”. So clearly, AI is an excellent opportunity for banks, a great opportunity to create more secure engagements with the customer and better manage risk. Moreover, it has now started to help banks on the software development side. Says Mahesh, “Now there’s a fascinating aspect that’s coming up, still an early bird from a banking perspective, maybe some of the big FinTechs also into it. But I believe that over time when you go into Dev-SecOps and the whole CDC pipeline and the infusion of AI into the whole scheme of things, it leads to interesting possibilities in managing risk”. From a CIO perspective, managing risk and how it will be better driven by AI is a crucial question for digital service providers. Taking on to that thought, Vishwanath says, “We are very mindful of the criticality of cybersecurity in the banking space, and we have built a lot of technologies around it. And all these are time-tested as we deploy them internally to manage cyber threats extensively. A testimony to that is we host numerous banks’ missioncritical data on our cloud infrastructure, and we have very proactive cyber threat management solutions in place, leading to trust and credibility in banking operations”. Organizations like YES BANK, with the right technology ecosystem, were able to digitally evolve continuously. In the bargain, they elevated the bar, not just for themselves, but for the entire industry to embrace newer technologies. It also underscores the importance of forging strategic collaborations with the right technology partners, which can help the banks to leap to the next level of innovation, tech maturity, more fantastic CX, and tangible business outcomes. MASTER STROKES Master Strokes is a series produced by BW Businessworld and Presented by IBM India. This series will recognize and present the efforts and accomplishments of technology leaders across sectors on how they use and continue to leverage technology to bring about business transformation creating a positive impact on their organisation. Vishwanath Ramaswamy, Vice President, IBM
07 October 2023 | BW BUSINESSWORLD | 33 Wi t h t h e C r i c k e t W o r l d Cup2023 slated to be an advertising extravaganza, here are five reasons why brands must not miss the mega event on television. 1. Growth of Cricket Viewership & Ratings on TV Cricket viewership on TV, both in terms of reach and ratings, has witnessed a meteoric rise in 2023. Viewership growth has been agnostic of formats, whether it is T20, Tests or ODIs. IPL 2023 broke all viewership records on TV, with a reach of over 500 million viewers and 34 per cent increase in TVR compared to 2022, as per BARC. The World Test Championship Final recorded the highest ever reach for any test match drawing 124 million viewers, 32 per cent higher compared to 2021. In the quantum of people viewing our ads on TV was that large.” 4.Power of Collective Viewing in Enhancing Advertiser Impact Given the level of passion for Cricket World Cups, viewers prefer watching the event on TV with friends and family, driving the largest aggregation of collective viewing. Engagement and discussions for brands viewed during ads contribute to higher discoverability and brand recall. According to YouGov research, co-viewing on TV among friends and family leads to 2.2X higher brand recall. 92 per cent cricket viewers discuss with family or friends before purchasing products. 5. Differentiated Brand & Business Impact World Cup on TV has powered advertisers to supremacy both in terms of brand & business impact. As per brand lift studies conducted during the World Cup, advertisers have consistently seen an increase in awareness by 2x, and consideration up by 1.7X. Search interest for brands advertising on TV has seen an uplift of 2X. Digital first brands like PhonePe, Spotify, Policy Bazaar & MakeMyTrip have become market leaders with associations with World Cup on TV. As per recent media reports, the likes of Coca Cola, Mahindra Auto and HUL have announced their associations with Disney Star, with the deals valued over Rs 150 crore each. The stage is set, and the world is watching. n 3X higher reach than Bigg Boss. 3. Surging Superiority of HD in Capturing Affluent Viewers HD continues to be the superlative platform to reach premium audiences with HD homes increasing by 30 per cent (56 million to 73 million) and 2X growth in cricket viewers (46 million to 109 million) in 2023. Sai Narayan of Policy Bazaar spoke about how the brand was one of the first clients to leverage cricket on HD. “Our first big move was when we leveraged HD feed on TV. We were the first advertiser Star Sports sold the HD feed to and the results were fantastic. There was a time during the tournament when our website could not bear the load from visitors because the year of ODI World Cup, the format recorded a massive 63 per cent increase in TVR, making it another record-breaking cricket mega event on television. 2 . P r o v e n M i g h t o f Cricket World Cup on Star Sports In the last edition of the ODI Cricket World Cup in 2019 when penetration was relatively less, a mammoth 552 million viewers were reached on television. Any India match during the World Cup delivers an incredible reach of 210+ million, which is more than the total number of online shoppers in India. With India set to play a minimum of 9 and a maximum of 11 matches this time, advertisers are in for a treat. Even non-India matches are a media plan by itself having reached 380 million viewers in 2019, driving 3.5X higher reach than KBC and f World Cup on television has powered advertisers to supremacy both in terms of brand and business impact. The Cricket World Cup 2023 this festive season promises to be yet another opportunity which advertisers cannot afford to overlook
34 | BW BUSINESSWORLD | 07 October 2023 AI Talk: Nvidia CEO Jensen Huang with PM Modi at PMO in New Delhi IN DEPTH TECHNOLOGY Photograph courtsey X Corp.@narendramodi
07 October 2023 | BW BUSINESSWORLD | 35 that the opportunity was limited and journalists from Mumbai and Delhi who were keen on attending this exclusive briefing were left disgruntled. During a discreet and hurried briefing prior to the meeting, the chosen journalists were presented with strict protocols: just one question per journalist, a baffling ban on recording (which was later allowed), a prohibition on phone usage and a strict no-photography policy. The invitation itself stipulated, “Please reach the Nvidia office by 2:30 pm at the latest for security check. There will be no entry allowed post 2:30 pm” – an unconventional directive. Interestingly, the meeting began well after RVIND KRISHNA (Chairman and C E O , I B M ) , Shantanu Narayen (Chair and CEO, Adobe), Punit Renjen (Global CEO Emeritus at Deloitte and incoming SAP chairman) and Brad Smith (Vice chair and president at Microsoft) – these are the giants of tech leadership that I had missed out on for exclusive interviews in recent times as the very pantheon of technology world descended to grace the B20 Summit in New Delhi in late August. As a journalist, I thrive on exclusive stories. And there is nothing worse than missing out on the biggest stories featuring the biggest names. So, when I got wind that Jensen Huang, Founder, President and CEO at Nvidia, was in India, I was the first to pitch for an interview — only to be denied. Instead, I received an invitation to a “closed-door meeting” with select members of the media, offering a chance to listen to Huang’s confidential conference in Bengaluru. My disappointment knew no bounds, even though I heard 3 pm with a hard-stop set at 4 pm. The Leather Jacket CEO As Huang arrived, clad in his trademark leather jacket, at Nvidia’s Mahadevapura (Bengaluru) office, the room’s chatter abruptly hushed. He seemed uneasy as he noticed people moving about beyond the translucent glass walls of the conference room. He stepped outside and summoned those who were lingering, impatiently inquiring about the arrival of certain other individuals. He made a pointed reference to us, the journalists, jesting that these latecomers would be assessing our behaviour. His restlessness remained evident as he urged Nvidia staff to take their seats, all the while showing eagerness to commence, contingent upon the mysterious latecomers’ arrival. It struck me that he possessed the traits of a stern leader, a notion corroborated by a former employee who had worked directly under Huang and currently held a Clevel position at a data cloud company. “The most important people are the employees. You guys know that, right? Let them in. Let them in,” implored Huang, as he invited those standing outside to join the gathering. “Our company’s priorities are crystal clear. We take care of our employees and we take care of our families. In return, they naturally produce exceptional products, hopefully driving substantial sales that benefit our shareholders,” he added with a touch of humour. Nevertheless, the meeting comA NO EXCLUSIVES Nvidia founder & CEO JENSEN HUANG’S recent ‘closed-door meeting’ with select journalists was remarkable for its strict dos and don’ts for the journos, Huang’s monologue on AI and its potential, what India needs to do and what Nvidia is doing to help, his lack of concern for job displacement, among other things By Rohit Chintapali INDIA'S AI-SKILLED WORKFORCE HAS GROWN 14-FOLD FROM JANUARY 2016 TO JUNE 2023, PLACING THE COUNTRY AMONG THE TOP FIVE NATIONS FOR AI TALENT GROWTH, ALONGSIDE SINGAPORE, FINLAND, IRELAND AND CANADA, ACCORDING TO A LINKEDIN SURVEY
36 | BW BUSINESSWORLD | 07 October 2023 menced without the anticipated late arrivals. Huang began by reminiscing, “It’s been five years since I’ve been here. Five years ago, I spent time with Modiji (Indian Prime Minister) because he invited me to talk. I was fortunate to have addressed Modiji’s cabinet and spoke to him about artificial intelligence, specifically focusing on this revolutionary concept of software authored by computers, with the computer engineer embedded within the machine.” Huang was referring to generative AI (GenAI), a groundbreaking technology that has captured the world’s attention since the public release of OpenAI’s ChatGPT in late November 2022. This technology has instilled both fear and excitement among people. But across the business landscape, companies are scrambling to devise strategies to harness this cutting-edge technology. Indeed, according to a Goldman Sachs analysis, GenAI has the potential to boost global GDP by 7 per cent, or nearly $7 trillion, and spur productivity growth by 1.5 percentage points over a decade. Following a comprehensive examination of databases on task profiles for over 900 occupations, Goldman Sachs economists projected that two-thirds of jobs in the US could be affected to some degree by AI-driven automation. This projection takes on even greater significance when extended beyond US borders, hinting at profound global ramifications in the years ahead. But Huang confidently expressed his lack of concern regarding job displacement. “The most widely used application for AI today is software programming. Currently, around 60-70 per cent of the code on GitHub is generated by AI. Yet, not a single software engineer has lost their job,” he asserted. Huang attributed this to the shared aspiration to enhance software development, doing so more efficiently and effectively. “Nobody lost their jobs. We simply invested in more AI. Thus, the only change we have witnessed is in the curriculum of computer science courses,” Huang concluded. India & AI There is no question that the US, with companies such as OpenAI, Google, Microsoft, Meta and IBM, has the lead on GenAI and AI as a whole among all countries. Second, of course, is China. Chinese organisations launched 79 large-language models (LLMs) in the country over the past three years as JENSEN HUANG, Founder and CEO, Nvidia “The OpenAI of India will be founded. No question about it. So will be the Cohere, Adept and Midjourney of India soon” IN DEPTH TECHNOLOGY
07 October 2023 | BW BUSINESSWORLD | 37 demand from large MNCs looking to transform their operations through AI/ ML after the pandemic. Under the terms of the partnership with Tata, Nvidia said it will also help upskill over 6 lakh employees at TCS on AI. GPUs Coming To India One of the journalists asked about how many GPUs India would be sourcing to grow fast in AI domain as the Reliance and Tata deals with Nvidia bear fruits – given OpenAI’s five-year journey to reach their current position. In response, Huang estimated that India would require approximately tens of thousands of GPUs to establish the necessary infrastructure, specifically around 1,00,000 GPUs or fewer, equating to fewer than 400 AI supercomputers. Huang expressed optimism about India’s AI prospects and predicted that India could achieve results comparable to those of US companies like OpenAI in a matter of weeks rather than months they doubled down on efforts to develop artificial intelligence (AI) algorithms, according to a report prepared by Chinese-run research institutes. Meanwhile, India, which quintessentially drives IT services for the globe’s 200,000 enterprises, lags on this front. Huang said India needs to work on its AI infrastructure rapidly for the development of LLMs and AI proliferation. He stated, “Artificial intelligence, just like 5G, needs infrastructure.” He went on and announced two ambitious AI infrastructure projects: one with Reliance and another with the Tata Group. “We are going to build AI supercomputers with Reliance. They are going to use it to create generative AI services for their 450 million customers,” Huang revealed. “In the case of Tata, they are going to create AI infrastructure. This infrastructure will support all of the AI companies in India, which are clamouring for infrastructure. They are flying all over the world looking for infrastructure. They might have to export their engineers to go work in California so they can have infrastructure there. There’s no reason to do that. Build the infrastructure here. The engineers don’t have to leave,” Huang said. Interestingly, a Bain & Company report says that India is the third-largest contributor to global Artificial Intelligence (AI) talent. The country is responsible for 16 per cent of global AI talent despite constituting a small share of the global AI market. The report surmises that this significant share of AI talent is due to the technology workforce of the country growing up in an internet/cloud-first world. The study also says that the micro, small and medium enterprises (MSMEs) in India are punching above their weight by leveraging their workforce and specialist contractors to incorporate AI/ML modules into their ecommerce ventures and digital business processes. The report also observed that India has seen a huge spike in AI talent Photograph courtsey X Corp.@narendramodi
38 | BW BUSINESSWORLD | 07 October 2023 when it comes to training GPT models. Why and how? Huang asserted that Nvidia is preparing to introduce the world’s fastest computers, which have not yet been produced. India will be among the first countries to access these computers, and they are expected to surpass anything previously seen in terms of speed while remaining costeffective. He anticipated that by the end of the next year, India will possess AI supercomputers that are at least 50 to 100 times faster, significantly reducing the cost associated with training foundational AI models. In the initial stages, both Reliance and Tata will have access to DGX Cloud, a service that enables any business to utilise its AI supercomputer via a standard web browser, simplifying the process of acquiring, deploying and managing on-premises infrastructure. Huang highlighted that it is now feasible for anyone and everyone to construct foundational AI models, such as ChatGPT, for a cost ranging from tweaked my question, shifting the focus to generative AI, given that behemoths like Google, OpenAI and Microsoft appeared to dominate the market. I asked, ‘What opportunities does India have in this context?’ Huang responded by emphasising that in our highly specialised world, no single entity, whether a corporation or an individual, could possess all the world’s knowledge or intelligence. He acknowledged the notion of a potential AI singularity in the future but underscored the importance of practicality in the present. He argued for harnessing existing technology and training AI systems to excel in specific domains, such as accounting, law and chemistry, to effectively address various needs. Amused that Huang broached the topic of the ‘AI singularity,’ I couldn’t resist asking the inevitable question: ‘Are you concerned about sentient AI?’ His succinct response was ‘No.’ He chose to conclude the discussion by remarking, ‘There are countless other considerations to ponder over.’ Leaving the ‘closed-door meeting,’ albeit one that was not exclusive, I departed with more insights to share. As a tech journalist, that’s ultimately what matters most. [email protected] “THE MOST WIDELY USED APPLICATION FOR AI TODAY IS SOFTWARE PROGRAMMING. CURRENTLY, AROUND 60-70 PER CENT OF THE CODE ON GITHUB IS GENERATED BY AI. YET, NOT A SINGLE SOFTWARE ENGINEER HAS LOST THEIR JOB” $10 million to $20 million, thanks to Nvidia’s efforts to make it more affordable by leveraging existing cloud infrastructure. On my part, I revisited a query I had posed to Huang during an event last year, inquiring about India’s prospects in the realm of AI. Back then, he had emphasised that India’s true potential lay in companies like TCS, Infosys and similar entities, which could propel AI into enterprises worldwide. This time, I IN DEPTH TECHNOLOGY
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40 | BW BUSINESSWORLD | 07 October 2023 IN DEPTH CORPORATE RAND MOTOROLA IS BACK in the reckoning if its performance in the recent past is any indication. Its India revenues have trebled in the last three years. Two of its premium flip phones, Razr 40 Ultra and Razr 40 were bestsellers in the Amazon Prime Day sale in July this year. And, so far in 2023, the brand has seen at least 10 launches across price points in the 5G category. As per International Data Corporation (IDC) that tracks the global mobile handset sales on a quarterly basis, the 5G smartphone category continues to see increased penetration. In the first half of 2023 (January-June), nearly half of the 64 B BETTING ON Motorola India has staged a spectacular comeback thanks to robust growth in 5G handsets as well as premium smartphone sales. But its goal to be among the top 3 brands in the next three years may be made difficult by intense competition and declining shipments By Ashish Sinha Premium & Pricey: Actor Kirti Shanon is the face of Motorola in India
07 October 2023 | BW BUSINESSWORLD | 41 the space,” says Upasana Joshi, Research Manager, Client Devices, IDC India. And 5G is precisely the space Motorola in India is expanding in, along with the premium segment ($600+) or smartphones priced million smartphones shipped were 5G smartphones. “5G smartphones continue to increase penetration in the low-end price segment and we should expect a strong 5G play in the $150<$300 segment in H2 2023 as high-end 4G models vacate Rs 50,000 and above, because the premium segment has a 9 per cent share in the overall smartphones pie and boasts the biggest margins among handset makers. Prashanth Mani, Executive Director, Asia Pacific, Motorola elaborates, “Our premium category has seen a 2X year-on-year growth, and the 5G category has seen an 8X year-on-year growth.” What distinguishes Motorola is its leadership in design and colours with its partnership with Pantone. They not only help curate colours but also give inputs on design including material and finish, says Mani. “Our innovation in form factors like foldables and our software experience which is giving consumers much more than what consumers are being provided today across price points with features like security and the ability to power multi-device experiences,” adds Mani, citing the reasons that are helping Motorola clock record growth. Of course, the ability of Motorola to bring the latest and the most advanced features first to market at accessible price points is being widely recognised, says Mani. 5G Category & Foldables 5G plays a pivotal role in Motorola’s strategic focus due to the burgeoning adoption of 5G devices within the Indian market. Motorola has exPREMIUMISATION “Our commitment is to sustain this momentum by offering top-tier 5G products across various price ranges, ensuring the finest in 5G connectivity, hardware, and software features...”
perienced exponential year-on-year growth, expanding 8-fold in the 5G category, earning recognition as India’s premier 5G smartphone brand in 2023, says Mani. “Our commitment is to sustain this momentum by offering top-tier 5G products across various price ranges, ensuring the finest in 5G connectivity, hardware, and software features to deliver an unprecedented 5G experience to Indian consumers,” adds Mani. Basically, Motorola’s strategy revolves around providing a versatile array of 5G devices that ensure seamless connectivity experiences. Motorola devices excel by supporting the maximum number of 5G bands, delivering superior speed and coverage. “By integrating 3 Carrier Aggregation and 4X4 MIMO IN DEPTH CORPORATE What is Motorola’s strategic approach? Motorola has experienced significant growth in sales and consumer acquisition over the past few years. We have achieved a doubling of our sellout quarter on quarter in FY 2023, with a strong growth rate of 57 per cent premium to market in Q1 of 2023. Our premium category has seen a 2x YoY growth, and the 5G category has seen an 8x YoY growth. What’s your strategy to expand market share in the 5G segment? 5G is a key segment for us as the penetration of 5G devices is growing rapidly in the Indian market. Motorola grew 8x YoY in the 5G category and has been recognised as India’s best 5G smartphone brand in 2023. We’re maintaining this momentum with premium 5G products spanning price ranges, delivering the ultimate 5G experience in India with superior connectivity, hardware, and software features. What are your plans for Indian foldable smartphone market? With extensive consumer insights and knowledge of consumer preferences, we consistently strive to drive meaningful innovation. Motorola has been leading in this segment and has launched four generations of devices. Motorola razr40 Ultra was the highest-selling smartphone in its price segment during the Amazon Prime Days Sale in 2023. The razr40 series was the biggest-ever flip phone launch on Amazon, with the razr40 and razr40 Ultra together achieving the highest number of sales for a flip phone during the sale. What is your 5-year plan? We aim to be among India’s top-3 smartphone brands, offering a diverse portfolio of budgetfriendly and premium models. We aim to leverage the premiumisation trend in the Indian market to drive hyper growth for our premium smartphone portfolio led by edge and razr franchises. We are not only leaders in form factors such as foldables but are also differentiating our premium portfolio through premium colours, materials, and design options that are emerging through our global partnership with Pantone – a global leader in colours and fashion trends. ‘Motorola Clocked 8x Growth in 5G Segment’ PRASHANTH MANI, Executive Director, Asia Pacific, Motorola talks to ASHISH SINHA about India business, growth strategy and more. Excerpts: 42 | BW BUSINESSWORLD | 07 October 2023
07 October 2023 | BW BUSINESSWORLD | 43 the year, says the latest report by IDC Worldwide Quarterly Mobile Phone Tracker. “Consumer demand remained sluggish amid uncertain macroeconomic conditions and inventory levels were elevated because of high stocking in 2H22,” the report says. After several quarters of growth, the average selling price also declined by 8 per cent QoQ in the second quarter of 2023. The share of the sub-$200 segment saw a 11 per cent dip in prices YoY. The mid-range segment ($200<$400) remained flat with a 22 per cent share, while the midto-high-end segment ($400<$600) with a 5 per cent share, grew 34 per cent YoY in Q2 of 2023, as per the IDC report. That is why brands like Motorola are focused on the midrange, the mid-to-high-end segment and the premium segment by offering choices at attractive price points, surmise experts. Will the upcoming festive season see stronger demand for smartphones? “The market requires strong double-digit growth in the next few months to see an overall annual growth in 2023, which looks unlikely as of now,” says Navkendar Singh, AVP – Devices Research, IDC. But Mani is hopeful of robust growth in the coming quarters. “We feel that the market will stabilise in H2. As per the IDC report in Q2 23, the market expanded by 10 per cent over the previous quarter, with the premium segment experiencing the most growth at 75 per cent YoY, resulting in a 9 per cent share. Our strategy of expanding our premium offerings with razr and edge series, plus acquiring share in the 5G segment through our Moto-g and e series of devices, aligns perfectly with this trend,” he says. [email protected]; @Ashish_BW technology, our smartphones establish a robust ‘data highway’ for unparalleled 5G experiences, catering to diverse budgets, including the affordable segment (Rs 10-20k),” explains Mani. Talking about the upcoming products, the moto g84 and moto g54, Mani says the moto g54 stands as India’s first 12GB+256GB 5G smartphone in its category, boasting a market-leading 6000mAh battery and a pioneering 50MP OIS camera for exceptional content creation. Meanwhile, the moto g84 introduces Pantone colours to the g-series and features an ultra-vivid 120Hz, 10-bit billion colour display, Mani informs. As per IDC data, the foldable market is expected to see 5.6 times unit growth globally by 2026, and India is also experiencing rapid growth in this area. Motorola has been leading in this segment and has launched four generations of devices. Intense Competition Overall, the Indian mobile handset market is shrinking. In the first six months of 2023, the total smartphone market saw 64 million handsets shipped, a 10 per cent YoY decline. And this cannot be good for all handset makers. But why is this happening? Overstocking is one reason, say experts. That is why the vendors and channels are focused on clearing the inventory by offering discounts, special schemes, and price drops before the start of the festive season in the second half of
44 | BW BUSINESSWORLD | 07 October 2023 Much Ado Over Nothing? The allegations against Sebi of turning a blind eye to DRI alerts against the Adani Group are politically motivated and have no basis in facts By Palak Shah SPOTLIGHT SEBI office at BKC A BUREAUCRAT’S JOB is a balancing act. Most Indian Administrative Services officers in highprofile positions are often walking the thin red line on political correctness and the chief of the Securities and Exchange Board of India (Sebi) is no exception. Upendra Kumar Sinha, Sebi chairman between 2011 and 2017, had a unique style of setting the cat amongst the pigeons. He presided over Sebi at a time when the co-location trading scandal at the National Stock Exchange (NSE) was a raging controversy and the role of his predecessor was conspicuous due to the acts of omission in the commission of duty. Had Sebi under Sinha not acted and ordered investigations, the co-location scandal would have remained buried. Despite the NSE being a cosy club of retired bureaucrats and its two top bosses calling the shots in New Delhi’s power circles, Sebi under Sinha managed to order two forensic investigations of NSE’s systems that opened the Pandora’s box. On his last day in office in February 2017, Sinha wrote a letter to the NSE board asking them to also get the audit extended to NSE’s cash segment. With powerful people backing NSE, the investigations were slow and Sinha can be accused of muted action, yet the credit fully goes to him for setting the ball roiling. Similarly, he also set the ball rolling on investigations into the Adani Group. Sebi Under Attack Currently, Sebi is in the eye of a political storm over the closure of its investigations into the alerts generated by the Directorate of Revenue Intelligence (DRI) with regard to the Adani Group, where it was alleged that the conglomerate had sent money outside the country by overinvoicing of bills and the same proceeds was used to manipulate group stocks. But amidst the cacophony and political Photograph by Satheesh Nair
07 October 2023 | BW BUSINESSWORLD | 45 The Real Culprits Sebi hit a roadblock since RBI, the banking regulator, did not pay heed to the issue and BoB cited legal restrictions that its branch faced in Dubai for its inability to share information with Sebi. Did Sebi keep quiet after its plea to BoB and RBI went unheard for more information? Sources close to the regulator’s office say that before Sinha left Sebi in 2017, the watchdog also wrote to IOSCO (International Organisation of Security Commissions) and sought its help in decoding the Adani transactions. There too, Sebi hit a wall since the information was not forthcoming and IOSCO did not help. What happened to DRI’s case against Adani? Before Sebi could peruse further, in 2017, the adjudicating authority of DRI, the same authority that had issued the SCN, set aside all the allegations and dropped the SCN against the Adani Group. Propagandists and political elements may say that DRI was acting under PM Modi but that would now amount to shifting the goalpost from targeting Sebi to DRI. Those dealing with legal issues in Sebi say the regulator actually closed its investigations against the Adani Group on the specific issue in 2022, nearly eight years after it first started the probe. This was after the adjudicating authority in DRI had rejected the SCN issued and the basic premises of the case had lost its sheen. In March 2023, the Supreme Court dismissed a petition filed by DRI challenging orders issued in 2022 by the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), which had quashed the over-invoicing allegations levelled by the DRI against three Adani Group companies. Allegations in social media and politically charged petitions in the Supreme Court ahead of the 2024 national elections still make for a great theatre. [email protected] mudslinging on social media, nobody is paying attention to what exactly happened to the DRI’s case and its allegations. Instead, stones are being pelted at Sebi for cowing down to the political pressure in ignoring the alerts sent to it by DRI and closing its investigations against Adani. What Really Happened Did Sebi close its case against Adani on the DRI alerts by turning a blind eye? Sebi insiders say that after DRI redflagged certain transactions involving the Adani Group in 2014 and sent a show cause notice (SCN) to the group in 2015, the same year the regulator acSebi hit a roadblock since RBI, the banking regulator, did not pay much heed to the issue and BoB cited legal restrictions that its branch faced in Dubai for its inability to share information with Sebi tually launched an investigation into the matter. It was Sebi’s probe that found that the alleged transactions were routed through the Dubai branch of Bank of Baroda (BoB). What did Sebi do? It first wrote to BoB in Dubai for more information and when the reply was not forthcoming, it even approached the bank’s head office in Mumbai. Sebi also wrote to the Reserve Bank of India (RBI), which was then presided by Governor Raghuram Rajan. Like the Adani Group is perceived to be close to the current ruling dispensation led by Prime Minister Narendra Modi, Rajan was perceived to be close to the Congress party. Photograph by Umesh Goswami
46 | BW BUSINESSWORLD | 07 October 2023 storytelling and become powerful tools for positive change. Truth forms the bedrock of trust, allowing businesses to establish credibility with their stakeholders. Purpose infuses meaning into their actions, aligning them with a greater societal good. Substance ensures that the stories are not hollow, but backed by genuine actions and values. In this context, narratives serve as catalysts for transparency, encouraging businesses to I N MODERN DAY business, storytelling is a given. Be it in the office board rooms or at any stakeholder presentations or in the brand communication. As much as strategy or pivot is the keyword for business plans, Storytelling is the buzzword, carrying both potential and peril. However, the trajectory we are currently on threatens to reduce storytelling in business to a mere facade, prioritising style and packaging over substantive content. This worrisome trend raises questions about the integrity and authenticity of businesses and calls for a shift towards ‘story with substance.’ In an age where branding and marketing have evolved into indispensable components of achieving success, the craft of storytelling has rightfully taken centre stage. Businesses, now more than ever, acknowledge the profound influence of narratives in captivating customers, cultivating unwavering brand loyalty, and propelling sales to new heights. Yet, the challenge that looms large is the distortion of this art form, where stories are fashioned with an undue emphasis on surface aesthetics, often at the expense of the authenticity and substance that underlie their content. This imbalance threatens to reduce storytelling to a mere marketing tool, missing the opportunity to create meaningful and lasting connections with an audience hungry for genuine experiences and narratives that resonate deeply. The danger here is not in storytelling itself but in its misuse. Stories have the potential to inspire, educate, and create genuine connections between businesses and their customers. When narratives are grounded in truth, purpose, and substance, they transcend mere Have Businesses Forgotten ‘Story with Substance’? COLUMN By Srinath Sridharan & Lloyd Mathias Photograph by Natvas
07 October 2023 | BW BUSINESSWORLD | 47 captivate an audience, it’s the substance behind that story – the actual product or service and the credibility of the brand – that sustains customer trust and loyalty. Relying solely on a glossy facade without genuine substance leaves brands and businesses vulnerable to a credibility gap. In today’s discerning consumer landscape, where information is readily accessible, consumers demand transparency, authenticity, and a robust foundation of facts. Thus, marketers must exercise caution and ensure that the story they pitch is firmly rooted in the truth, the strength of their offerings, and unwavering integrity to mitigate the risks of short-lived success and potential damage to reputation. The relentless pursuit of rapid responses and constant engagement on social media platforms has inadvertently spurred a culture where marketers are pressured to churn out content at breakneck speed. In this race against the clock, the quality and substance of the stories being told often take a backseat. The demand for immediate reactions and instant gratification can lead to hastily constructed narratives that lack depth and authenticity. This push for quantity over quality jeopardizes the very essence of storytelling, potentially inundating consumers with a flood of poor stories that do little to inform or engage. There exists an uncompromising and dire need for a resolute commitment to ‘Story with Substance’ in the realm of business today. Flashy and hollow narratives may temporarily dazzle, but they do a disservice to both businesses and consumers, eroding trust and obscuring genuine value. The unrelenting pursuit of profit-driven spectacle, devoid of genuine substance, is a perilous path that threatens the very foundation of ethical business. It’s time for a paradigm shift to those champion narratives deeply rooted in truth, purpose, and genuine worth, for it is in ‘Story with Substance’ that we find not only success but also the moral and ethical high ground that businesses must uphold. Anything less is not just a disservice; it’s a betrayal of trust. open their doors to scrutiny and accountability. They become conduits for ethical practices, guiding companies to make choices that benefit not only their bottom line but also the well-being of their employees, customers, and the environment. Ultimately, narratives rooted in these principles pave the way for responsible entrepreneurship, where success is measured not just in profits but in the positive impact created for society as a whole. To safeguard the integrity of storytelling in business, it is imperative that we champion the concept of ‘story with substance.’ It compels businesses to invest not only in financial resources but also time and effort in the art of crafting narratives that align harmoniously with their core values. By doing so, these narratives transcend superficial marketing tactics and resonate with audiences on a profound, emotional level, fostering stronger connections and trust that endure far beyond the immediate transaction. The fervour among marketers to craft an enticing, sugar-coated narrative can indeed be alluring, but it carries inherent risks when divorced from the sustained strength of a core proposition and the foundation of integrity bolstered by substantiated information. While a compelling story can initially Srinath Sridharan is an author, policy researcher & corporate advisor Lloyd Mathias is an angel investor & senior business leader Stories have the potential to inspire, educate, and create genuine connections between businesses and their customers. When narratives are grounded in truth, purpose, and substance, they transcend mere storytelling and become powerful tools for positive change
48 | BW BUSINESSWORLD | 07 October 2023 On India’s Post-pandemic Recovery When I wrote the book, we were in the midst of the pandemic. The economy had been seriously affected. We needed to restore our potential. As things have normalised, as we bounce back, as we’ve seen a recovery in employment, particularly of the more informal sector. The pandemic really affected travel, tourism, retail. (Today), every flight is full. You see it in hotel occupancy, and you see it in retail. So I think all of that is very promising in restoring our potential. Now, I think the longer term issues are still issues that we “IT’S TIME INDUSTRY FOCUSED MORE ON R&D” INTERVIEW F orbes Marshall Co-chairperson & CII’s former president Naushad Forbes authored The Struggle and the Promise: Restoring India’s Potential during the Covid-19 pandemic. As the book completed one year of its launch recently, Forbes spoke to BW Businessworld about the distance India has travelled since the pandemic, the possibilities and the challenges ahead. He argues that the Indian economy is in a good shape, but there remain long-term concerns. Excerpts need to address. Getting a good jobs employment engine underway, for instance…It was something I spent a lot of time on in the book. That issue remains to be addressed. Growing manufacturing employment remains a high potential area, growing tourism potential (is again) a huge potential area for us. Improving the quality of our school education, which was also seriously affected during the pandemic, is something we have not recovered from yet. On The Positive And Negative Signs There are interesting and (some) very inspiring private sector efforts underway, but an improvement in the wider public school system is a struggle that remains to be addressed. I think these are some of our fundamental, fundamental longer term problems. And then one more for industry. I spent a lot of time in the book on innovation. There was one chapter that argued very strongly that Indian industry needs to be much more research intensive, more focused on R&D. It should invest much more in R&D. There’s some qualitative indication that things are starting to improve, but we clearly have a very long way to go in Indian industry to raise the profile of R&D and to increase our investments in R&D. There are encouraging signs on the public research side, though. The recent announcement of the National Research Foundation is a very encouraging sign.
07 October 2023 | BW BUSINESSWORLD | 49 Done right, it can be potentially quite transformative to our higher education system and our higher education quality, which can go a long way to building the right kind of public research base for the country. There remains the issue of addressing our autonomous government R&D laboratories, which I also talk about in one chapter in the book. There’s no movement on that as yet. On Economic Milestones Becoming a $5-trillion economy is not a goal. Becoming a $5-trillion economy in a defined timeframe is a goal. The original goal was to be a $5-trillion economy by 2024. We’ve now pushed it back to 2026. Even becoming a $5-trillion economy by 2026 requires a rate of growth that is significantly higher than what we are achieving now. Yes. I think it requires a rate of growth of around 9 per cent, which is significantly higher than the 6-7 per cent we are achieving now. I think my concerns for the economy are not short term. I think all the short term signs are actually pretty encouraging. I think India’s in a good place, largely because other parts of the world have done stupid things. On the Government’s Role In Economic Matters And I think we should be giving much more air time to the Indian industrialists who are confident and positive and want to go out into the world and are confident of being able to compete with the best of the world in India and in the world. So I think that would be my message to my colleagues in industry. I really think that government should be an enabler. It should not be a decision maker when it comes to deciding which industries we should go into, which technologies matter to us. This is not the government’s role. The government’s role is to enable industry to take those decisions and the market to decide whether they were the right decisions or not. On Cofounding A Private University Yes, I am one of co-founders of a private university to be launched next year. The goal is to start with a focus on public policy and then to move into the humanities, social sciences, physical and natural sciences, to provide undergraduates and graduate students, over time, with a truly world-class experience. This is a collective effort of several member companies that are active members of Confederation of Indian Industry, but this is not a CII project. We want to start a university that can really tap into the talent of India.
50 | BW BUSINESSWORLD | 07 October 2023 IN DEPTH MARKETS S EPTEMBER WAS remarkable for India in more ways than one. T he G20 Summit 2023 under India’s presidency was hailed as the most successful ever in terms of outcomes. And, as if to celebrate that success, Nifty scaled Mount 20K for the first time, reinforcing the belief in a resurgent India. Although the stock market feat was the result of a complex interplay of solid fundamentals, global optimism, and substantial investments, both foreign and domestic, what really impressed everyone was the speed with which Nifty hurtled from 10K to 20K. It went from 10K to 11K in just 47 days, from 11K to 12K in 84 days, from 12K to 13K in 43 days, from 13K to 14K in 37 days, and from 14K to 15K in just 36 days, underscoring market enthusiasm. The euphoria generated by the unabated market momentum has seen some people trying to indulge in soothsaying and predicting where the markets would be three months or six months down the line. A common poser emanating from such folks now is whether Nifty would scale Mount 24K in fiscal year 2023-24. While that may or may not be possible, and no one is likely to lose sleep over it, what really matters is that the market momentum remains secure and intact, a factor that has seen companies making a beeline for the bourses with their IPOs (initial public offer) and finding investors ready to lap up their shares, even if it means paying a premium. This trend certainly looks like continuing. As per the latest EY IPO Market report, the Indian stock exchanges were ranked first in the world in terms of the number of IPOs and eighth in terms of issue proceeds as of first week of August. Adarsh Ranka, Partner, Financial Accounting Advisory Services Leader, network firm of EY Global, said, “In the forthcoming months, significant moThere is no way of telling whether NSE will head to 24K in six months. But with fundamentals remaining intact, the IPO market looks set to surge By Ashish Sinha GOLD RUSH mentum is anticipated in the Indian IPO market, encompassing both the main and SME market segments.” Towards 24K? It’s important to note that the stock market is influenced by a complex interplay of factors, and predicting its movements with certainty is challenging. Investors should exercise caution, diversify their portfolios, and stay informed about economic and geopolitical developments that could impact the NSE Nifty Index in the coming months. Several factors are set to influence the trajectory of the Nifty index in the near term. Firstly, the growth of corporate earnings remains a key driver, and if companies across various sectors sustain their robust financial performance, it is likely to create a favourable backdrop for the Nifty’s upward movement, say stock market experts. “The broader global economic recovery, particularly in major economies, holds significant sway over investor sentiment towards emerging markets like India. Positive signals emanating