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The DISRUPTORS WOMEN Women entrepreneurs and intrapreneurs who are reshaping industries with their innovation and leadership Rs 200 1.Niharika Jalan, 2. Neha K Bisht, 3. Arushi Verma, 4. Akansha Vishnoi, 5. Amrita Gupta, 6. Meena Kapoor, 7. Akshaara Lalwani, 8. Aakanksha Bhargava, 9. Aastha Singh, 10. Joyeeta Ghosal, 11. Panchali Mahendra, 12. Jayshri Patil, 13. Aishwarya Jhawar, 14. Radhika Shrivastava, 15. Prachi Kaushik, 16. Utshah Sharma, 17. Rithika Agnishwar, 18. Ramya Venkataraman, 19. Priyanka Salot, 20. Priyanka Jain, 21. Rashi Agarwal, 22. Renu Singh, 23. Vishakha RM, 24. Sonica Malhotra, 25. Ritika Sahni, 26. Sonali Jindal, 27. Santosh Agarwal, 28. Roma Roy Choudhury, 29. Sharmila Thanki, 30. Shavita Bhatti, 31. Udita Bansal 1 2 3 4 5 6 7 8 9 10 11 12 13 23 14 15 16 17 18 19 20 21 22 24 25 26 27 28 29 30 31 www.businessworld.in RNI NO. 39847/81 I 18 MAY 2024

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4 | BW BUSINESSWORLD | 18 May 2024 AT BW BUSINESSWORLD, championing the cause of women entrepreneurs has always been a cornerstone of our editorial ethos. In this issue, we celebrate the remarkable strides made by women across diverse sectors in India’s entrepreneurial landscape. From pioneering tech startups to preserving traditional crafts, women entrepreneurs are not just breaking stereotypes but also driving substantial economic and social impact. Their talent, resilience and innovation are shaping the future of business in India. Moreover, alongside these dynamic founders are leaders who amplify the vision and mandate for gender-inclusive entrepreneurship. The BW Women Entrepreneurs and Intrapreneurs recognised in this issue exemplify this commitment. In the rapidly evolving tech sector, women-led startups are at the forefront of innovation, harnessing cutting-edge technologies to drive change. Their success stories serve as beacons of inspiration, illuminating the immense potential and talent that women bring to the table. As we navigate towards a more inclusive and vibrant economy, it’s imperative to recognise and support the invaluable contributions of women entrepreneurs. In this issue we also dive deep into the developments related to 5G services and how in the 18 months since its launch, India has emerged as a global front runner in its proliferation. The report also looks at why the telecom incumbents are having a cautious approach to the upcoming spectrum auction in early June. Meanwhile, state-owned financing firm REC recorded strong performance in FY24. The maharatna CPSE has also been designated as the overall programme implementer of the ambitious Solar Rooftop Programme, announced by the Prime Minister during the consecration ceremony of the Ram Mandir in January. REC CMD Vivek Kumar Dewangan talked to BW Businessworld on the firm’s strides in diversifying its loan book, the razor-sharp focus on asset quality and the modalities of the solar rooftop scheme. Of course, we also bring to you all our regular features and columns. Happy reading! ANNURAG BATRA [email protected] EMPOWERING EXCELLENCE EDITOR-IN-CHIEF’S NOTE

MAY 14, 2024 Final Material Deadline: Aparna Sengupta, [email protected], +91 9958000128 Anjeet Trivedi, [email protected], +91 9818122217 Ravi Khatri, [email protected], +91 9891315715 CS Rajaraman, [email protected], +91 9342262859 Somyajit Sengupta, [email protected], +91 9818247444 Kiran Dedhia, [email protected], +91 9833399009 Sajjad Mohmmad, [email protected], +91 9911855935 Shruti Arora, [email protected], +91 7982628913 Deepak Bhatt, [email protected], +91 9429423232 Santosh B Singh, [email protected], +91 9820129879 Nitin Pawar, [email protected], 9456639006 fifffflffiflfflffifflffffl flflff  For Editorial: Noor Fathima Warsia, [email protected] Spotlight: Who were India's Most Respected Companies in the Year Gone In-depth Articles: Highlighting business practices, innovations and impact on respective industries CEO Interviews: Insights from leaders about strategies, corporate culture and visions for the future that have earned respect in the industry and from their peers Exclusive Features and Interviews Opinions & Insights from Industry Leaders MOST RESPECTED COMPANIES JUNE 1 2024 Block your pages...

6 | B W BUSINESSWORLD | 18 May 2024 BW Businessworld does not accept responsibility for returning unsolicited manuscripts and photographs. All unsolicited material should be accompanied by self-addressed envelopes and sufficient postage. Published and printed by Annurag Batra for and on behalf of the owners, BW Businessworld Media Private Limited. Published at 74-75, Scindia House, Connaught Place, New Delhi-110001, and printed at Thompson Press India Limited. Editor : Annurag Batra. © Reproduction in whole or in part without written permission of the publisher is prohibited. All rights reserved. R.N.I.No. 39847/81 BW Businessworld Media Private Limited EDITORIAL OFFICES BW Businessworld Media Pvt. Ltd. 74-75, Scindia House, Connaught Place, New Delhi-110001 Phone: 9818063325 ADVERTISEMENT / CIRCULATION / SUBSCRIPTION ENQUIRIES BW Businessworld Media Pvt. Ltd. 74-75, Scindia House, Connaught Place, New Delhi-110001 Phone: 9818063325 SUBSCRIPTION SERVICE Vinod Kumar +91 9810961195, [email protected], [email protected] Subscription rates: ONE YEAR - Rs 3,499 TWO YEARS - Rs 6,499 THREE YEARS - Rs 9,499 HUMAN RESOURCES: Namrata Tripathi ([email protected]) LEGAL ADVISOR: Sudhir Mishra (Trust Legal) GROUP CHAIRMAN & EDITOR-IN-CHIEF: Dr. ANNURAG BATRA CEO, BW COMMUNITIES Bhuvanesh Khanna CEO & CHIEF INNOVATION OFFICER Hoshie Ghaswalla (CEO-BW Engage) GROUP EDITORIAL DIRECTOR Noor Fathima Warsia MANAGING EDITOR: Palak Shah EDITORIAL TEAM Sr. Associate Editors: Ashish Sinha, Jyotsna Sharma, Meha Mathur Associate Editor: Ojasvi Nath Assistant Editor:Tarannum Manjul, Priyanka Singh Sr. Correspondents:Arjun Yadav, Deep Majumdar Regional Editor (Technology & South): Rohit Chintapali Special Correspondent: Rajany Pradhan, Abhishek Sharma Correspondent: Barkha Rawat Jr. Correspondent: Nitesh Kumar, Himanshu Kumar Ojha, Shruti Tripathi, Sangeet Kumar Sanu DESK TEAM Deputy Editor: Mukul Rai Associate Editors: Madhumita Chakraborty; Smita Kulshreshth ART TEAM Art Directors: Dinesh Banduni, Shiv Kumar, Shivaji Sengupta Assistant Art Director: Rajinder Kumar Infographics & Data Visualiser: Arun Kumar, Rahul Roy Assistant Images Editor: Sanjay Jakhmola PHOTO TEAM Sr. Photo Researcher: Kamal Kumar, Photographer: Naval Kishore BW ONLINE: Assistant Editor: Poonam Singh VIDEO EDITORIAL TEAM Video Team: Pappu Kumar Singh, Sunny Kumar Paswan Sr. Cameraperson: Ratneshwar Kumar Singh BW APPLAUSE & EVERYTHING EXPERIENTIAL: Ruhail Amin, Neha Kalra, Pratyaksh Dutta BW AUTO WORLD: Utkarsh Agarwal BW DISRUPT: Resham Suhail BW EDUCATION: Upasana BW HEALTHCARE WORLD & BW WELLBEING WORLD: Kavi Bhandari, Sanjana Deb BW HOTELIER: Editor: Saurabh Tankha, Operations Controller: Ajith Kumar LR BW MARKETING WORLD: Soumya Sehgal, Reema Bhaduri BW PEOPLE: Sugandh Bahl, Savi Khanna BW LEGAL WORLD: Krishnendra Joshi, Kaustubh Mehta BW SECURITY WORLD: Shilpa Chandel BW POLICE WORLD: Ujjawala Nayudu BW ENGAGE/BW CIO: Musharrat Shareen BW RETAIL: Amisha Sharma BW HINDI: Assistant Editor: Lalit Narayan Principal Correspondent: Neeraj Nayyar Senior Correspondent: Ritu Rana, Correspondent: Dheeraj Chand Belwal DIRECTOR: Prasar Sharma GROUP DIRECTOR – REVENUE: Aparna Sengupta GROUP SR. VICE PRESIDENT - STRATEGY, OPERATIONS & MARKETING Tanvie Ahuja ([email protected]) CEO, BW HEALTHCARE WORLD & BW WELLBEING WORLD: Harbinder Narula DIRECTOR, PROJECTS & COMMUNITIES: Talees Rizvi VICE PRESIDENT: Mohit Chopra SALES TEAM NORTH: Ravi Khatri, Anjeet Trivedi, Rajeev Chauhan, Amit Bhasin, Nitin Pawar, Somyajit Sengupta, Sajjad Mohammad, Agrata Nigam, WEST: Kiran Dedhia, Santosh B. Singh, Nilesh Argekar, Deepak Bhatt SOUTH: C S Rajaraman MARKETING & DESIGN TEAM: Kartikay Koomar, Mohd. Salman Ali, Moksha Khimasiya, Shweta Boyal, Alka Rawat, Mudit Tyagi, Arti Chhipa, Gazal Gupta, Himanshu Khulbe Asst. Manager - Design: Kuldeep Kumar EVENTS TEAM Tarun Ahuja, Devika Kundu Sengupta, Akash Kumar Pandey, Mohd. Arshad Reza, Ashish Kumar, Nandni Sharma, Savi Chauhan, Mahek Surti, Reeti Gupta, Atul Joshi, Biren Singho, Sahil Tiwari, Neeraj Verma, Anupama Agrawal, Sushmita Kumari, Vaishali Vij, Anmol Kaur, Baani Chauhan, Shivam Popli, Prashant Kumar, Shweta Srivastava, Kuldeep Prajapati, Saloni Jain, Aditi Rawat, Deepshikha Singh, Shailesh Pal BW COMMUNITIES BUSINESS LEADS Priya Saraf (BW Education), Chetan Mehra (BW Disrupt), Shruti Arora (BW Marketing World), Priyanshi Khandelwal (BW Sustainability) CIRCULATION TEAM General Manager - Circulation, Subscription & Sales: Vinod Kumar ([email protected]) NORTH: Vijay Kumar Mishra, Sanjay Kumar, Mukhtadir Malik, Kamlesh Prasad WEST: Gorakshanath Sanap SOUTH: Sarvothama Nayak K Senior Manager (Production & Printing): Shiv Singh FINANCE TEAM Ankit Kumar, Ishwar Sharma, Shrikant Sharma, Vijay Jangra IT SUPPORT: Brijender Wahal ADMIN SUPPORT: Executive Assistant to MD: Himani Saxena ([email protected]) Assistant to Chairman & Editor-in-Chief: Aman Mishra ([email protected]) VOL. 43, ISSUE 15 18 MAY 2024

DR. ANNURAG BATRA Chairman & Editor-in-Chief BW Businessworld & Founder, exchange4media SALIL KAPOOR CEO Hindware Home Innovation Limited PROF. HIMANSHU RAI Director Indian Institute of Management Indore DR. BHIMARAYA METRI Director IIM Nagpur TALEES RIZVI Director BW People & BW CFO World DR. SY SIDDIQUI Former Executive Advisor Maruti Suzuki VARADARAJAN S (RAJA) Board Advisor, Start up Partner, Leadership Coach & Former CHRO & Head of Corporate Affairs of Vistara (Tata & SIA JV) EVENT PARTNERS FOR REGISTRATION QUERY: Ashish Kumar | +91 97179 22747 [email protected] Aditi Rawat | +91 9873431912 [email protected] FOR COMMUNITY COLLABORATION: Talees Rizvi | +91 93106 34007 [email protected] FOR SPEAKING OPPORTUNITY: Reeti Gupta | +91 98996 10630 [email protected] FOR SPONSORSHIP: Aparna Sengupta | [email protected] | +91 9958000128 Anjeet Trivedi | [email protected] | +91 9818122217 CS Rajaraman | [email protected] | +91 9342262859 Deepak Bhatt | [email protected] | +91 9429423232 Kiran Dedhia | [email protected] | +91 9833399009 Rajeev Chauhan | [email protected] | +91 9811820301 Ravi Khatri | [email protected] | +91 9891315715 Sajjad Mohammad | [email protected] | +91 9911855935 Shruti Arora | [email protected] | +91 79826 28913 Somyajit Sengupta | [email protected] | +91 9818247444 Faizuz Ahamed | [email protected] | +91 98206 68333 Santosh B Singh | [email protected] | +91 9820129879 SCAN TO NOMINATE 9th 2024 NOMINATE NOW #HRExcellenceAwards JURY MEMBERS

8 | B W BUSINESSWORLD | 18 May 2024 MAILBOX YOUR COMMENTS TALK BACK Mark Read (L) & CVL Srinivas,  WPP CREATIVITY AND MARKETING BEHEMOTH, WPP IS HONING ITS INDIA STRATEGY TO FORMULATE A TECH-FOCUSSED PROPOSITION THAT IS BOOSTING ITS GLOBAL GROWTH fifffflffiflfflfififfiffififflflffffiffififfiffl CRACKING THE INDIA-FIRST CODE SCAN TO WATCH WPP's CVL Srinivas in mixed reality like experience Just point your camera at the QR code fflflfflffififflffl ffffifflffifl Rs 200 www.businessworld.in RNI NO. 39847/81 I 04 MAY 2024 WPP’s CVL Srinivas in mixed reality like experience A STABLE STOCK MARKET This refers to the editorial (“India’s Equity Revolution”, BW, May 04). India’s stock market seems to be stabilising after the pandemic. The market’s value depends on the country’s economic growth, the profits of listed companies, and political stability. India’s economy is expected to grow steadily, supported mainly by the services sector. Despite challenges, the corporate sector is showing positive profit growth. The market is also influenced by the expected political stability after the 2024 elections. Many are optimistic about India’s market due to its diverse sectors and strong demand. As highlighted in the article, it’s believed that the Indian market will remain strong, attracting both domestic and foreign investors. VAISHALI RAWAT, EMAIL SUSTAINABILITY FIRST This refers to the editorial (“Breaking Through The Greenwashing Clutter”, BW, May 04). The commitment to sustainability in product development and innovation is imperative for brands seeking to make a positive impact on the environment and society. By prioritising eco-friendly materials, promoting ethical sourcing, and engaging in community outreach programmes, these companies are not just embracing sustainability as a trend, but are actively and consistently contributing to a greener and more inclusive world. Brands need to double down on their sustainability thesis to remain in business. ARUN SHARMA, EMAIL CORRIGENDUM In the The Creativity + Tech + Innovation Issue (BW, May 04, 2024), the write-up ‘Talent Always Wins’ incorrectly stated that Omni was launched in 2023. We regret this error. The data and marketing orchestration platform, Omni, has been actively utilised across Omnicom’s practice areas since 2018. 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

fifffflffffiflflff fl fifffflffiflfifffflffifl fifififffflfiffiflfiffiff 3rd EDITION BUILDING BLOCKS OF RETAIL SUMMIT 2024 fiffffl flffi fifffflffiflfifffflffifl fifififffflfiffiflfiffiff UNDER FORTY AWARDS 3rd EDITION JULY 2024 NOMINATE NOW MR. T. KOSHY MD & CEO, ONDC MR. DEVNDRA CHAWLA MD & CEO, Chief Driving Ofice, Greencell Mobility MR. KAZEM SAMANDARI Executive Chairman, L’Opéra MS. GEETIKA MEHTA MD, Nivea India DR. ANNURAG BATRA Chairman Editor in Chief BW BusinessWorld and Founder, exchange4media MR. SUNIL CHAUHAN Founder, Fab Cafe Foods & Chefs United Foodtech MR. DEEP BAJAJ Co-Founder, Sirona & Pee Buddy MR. VED SHUKLA Founder & CEO Mylomart & Advisor BW Retail World MS. NOOR FATHIMA WARSIA Group Editorial Director BW Businessworld MR. VIKAAS GUTGUTIA Founder & MD, Ferns N Petals OUR EMINENT JURY For Nominations & Queries: Chirodeep Mitra: +91 98111 36111, [email protected] Sanjana Choudhary: +91 86900 34757, [email protected] For sponsorships: Aparna Sengupta: +91 99580 00128, [email protected] Somyajit Sengupta: +91 98182 47444, [email protected]

10 | BW BUSINESSWORLD | 18 May 2024 THE WOMEN DISRUPTORS CONTENTS Cover design by DINESH S. BANDUNI Sailing High, Sailing Smartly From edtech to the not-so-easy-tohandle defensetech and spacetech, women entrepreneurs are coming into their own in diverse fields and disrupting the business landscape 54 12 Jottings Record GST collections says all’s well with India; Inheritance Tax, and more 13 Jottings Plus How the Godrej Group’s split signals a positive trend for family businesses 14Columns Palak Shah (p. 14); Minhaz Merchant (p. 16); Vikas Singh (p. 18); Srinath Sridharan (p. 20); Krishan Kalra (p. 22); Arman Sharma & Amit Kapoor (p. 24); Kiran Karnik (p. 28); Shubranshu Singh (p. 30); Srinath Sridharan & Dakshita Das (p. 44); Ritwika Nanda & Tannishtha Chatterjee (p. 82);Srinath Sridharan & Steve Correa (p. 84); Arijit Ray (p. 86); Suhayl Abidi, Manoj Joshi & Ashok Kumar (p. 88); Krishan Kalra (p. 96) 32 Fast Data How the frenzied adoption of 5G services in the country signals a transformative shift in the telecommunications landscape, promising boundless innovation 48 Interview REC CMD Vivek Kumar Dewangan on the financing firm’s strides in diversifying its loan book, the sharp focus on asset quality, the plan for the solar rooftop scheme and more 50 In Conversation Rahul Singh, Co-founder and VP - Engineering, ideaForge, a leading manufacturer of UAVs, on the growing importance of drones across sectors, its benefits, future challenges and more VOLUME 43, ISSUE 15 18 MAY 2024

18 May 2024 | B W BUSINESSWORLD | 11 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 100 WEISA WINNER PROFILES 56 Aakanksha Bhargava, PM Relocations 56 Aastha Singh, Gramshree Agri Services 57 Aishwarya Jhawar, Ektara 57 Akanksha Vishnoi, Yesmadam 58 Akshaara Lalwani, Communicate India 58 Amrita Gupta, Amrita Gupta Designs 59 Arushi Verma, FITPASS 59 Jayshri Patil, Intangles Lab 60 Joyeeta Ghosal, GoKwik 60 Meena Kapoor, Astroyogi 61 Neha K Bisht, Blue Buzz 61 Niharika Jalan, Indicold 62 Panchali Mahendra, Atelier House Hospitality 62 Prachi Kaushik, Vyomini Social Enterprise 63 Priyanka Jain, Snow World Entertainment 63 Priyanka Salot, The Sleep Company 64 Radhika Shrivastava, FIIB 64 Ramya Venkataraman, CENTA 65 Rashi Agarwal, Zypp Electric 65 Renu Singh, Aarize Group 68 Sonali Jindal, RING 70 Sonica Malhotra Kandhari, MBD Group 70 Udita Bansal, trueBrowns 72 Uttsah Sharma, Qnivers 72 Vishakha RM, IndiaFirst Life Insurance 74 BW Event Snapshots from the BW Disrupt Women Entrepreneurs Intrapreneurs Summit and Awards 2024 that, among other things, discussed strategic pivots for startups to scale up and the importance of investing in women 78 In Conversation Arun Jain, CMD, Intellect Design Arena on the mid-term and long-term consequences for Indian PSBs arising from lack of business impact measurement in their technology adoption 90 Gadgets A review of the HP Omen Transcend 14 gaming laptop, and how its launch is timely given the explosive growth in the segment 94 Bookmark The launch of media industry veteran DD Purkayastha’s autobiography that captures his 42-year tryst with the ABP Group 66 Rithika Agnishwar, Garuda Aerospace 66 Roma Roy Choudhury, Evolved Foods 67 Santosh Agarwal, Policybazaar 67 Sharmila Thanki, Tip & Toe 68 Shavita Bhatti, GrowthPlug 38 GLASS HOUSE A special report on an NCLT order on Hindustan National Glass & Industries that has turned out to be the most controversial corporate debt resolution plan in recent history 97 Last Word Rupen Patel, CMD, Patel Engineering on the company’s achievements, projects and much more Photograph by Kiriak09

12 | BW BUSINESSWORLD | 18 May 2024 JOTTINGS Record GST Collection Says All’s Well with India I F VINDICATION IS NEEDED of an upsurge in the economy in both letter and spirit, here’s data that says that all is well with India. The Gross Goods and Services Tax (GST) collections have surged to unprecedented heights in April 2024, reaching an impressive sum of Rs 2.10 lakh crore. This figure marks a notable 12.4 per cent year-on-year growth, propelled by robust expansions in domestic transactions soaring by 13.4 per cent, and imports ascending by 8.3 per cent. Following adjustments for refunds, the net GS T revenue for April 2024 stands tall at Rs 1.92 lakh crore, showcasing a remarkable 15.5 per cent surge compared to the corresponding period of the preceding year. Abhishek Jain, Partner & National Head of Indirect Tax at KPMG in India, heralds this consistent upswing in GST collections as cause for jubilation, since it reflected the vigour of the domestic economy. Jain says the jump in collections may also have been triggered by the exigency of GST audits and the attendant flurry of notices dispatched in the course of the fiscal year. Aditi Nayar, Chief Economist at ICRA echoes Jain’s views. She anticipated CGST collections outpacing the FY 2024 revised estimates by a substantial margin of Rs 25,000 crore to Rs 30,000 crore. M.S. Mani, Partner at Deloitte India sees a watershed moment in the GST landscape. The concerted endeavours of both central and state GST authorities, coupled with stringent crackdowns on evasion, have engendered a profound shift in the compliance ethos among businesses, Mani believes. Substantial increments in collections have been witnessed across all major producing and consuming states, affirming the pervasive nature of this uptrend. — Ashish Sinha SEASONED CONGRESS leader Sam Pitroda seems to have a knack for stepping into controversies that ignite political firestorms. His recent proposal for an “inheritance tax” has stoked flames of a smouldering political firmament, where rival parties spar as India goes to polls. Borrowing the slogan of the Life Insurance Corporation of India (‘Zindagi ke saath bhi, Zindagi ke baad bhi’ – with you through life and after), Prime Minister Narendra Modi has accused the Opposition of planning to plunder the nation during a life time and even after it. The inheritance tax will prove a hurdle in transferring wealth within families. Experts say it could entice flight of capital from the country as high net worth individuals (and may their tribe increase in an economy being stirred by startups and a new generation of entrepreneurs) strive to protect assets from hefty taxation. Even though both Sam Pitroda and the Indian National Congress have clarified that the remarks were personal and did not reflect a party stance, the grand old party may have lost a few friends because of it. — Abhishek Sharma INHERITANCE TAX Photograph by Blackboard373 Photograph by Andrewde

18 May 2024 | B W BUSINESSWORLD | 13 HE GODREJ GROUP’S decision to split, or its ‘realignment’ as the group leaders call it, should not come as too much of a surprise, especially for a conglomerate with a legacy spanning 127 years. The Birla and Bajaj families split after three generations, the Ambanis in the second generation and the likes of the Munjals and Jindals even earlier. In each case, there is enough evidence of the potential for growth post-division. The Godrej family’s decision to divide the group, with Adi and Nadir Godrej retaining control of Godrej Industries and cousins Jamshyd and Smita taking charge of Godrej & Boyce, reflects a thoughtful approach to ownership realignment. The two branches of the founding family say that it is aimed at fostering greater focus, agility and alignment with evolving visions. This realignment not only respects the differing nance within the family enterprise. Beyond operational considerations, the split also underscores the importance of maintaining familial harmony and cohesion, which are essential for the sustained success of family businesses. By arriving at the realignment respectfully and mindfully, the Godrej family sets a precedent for constructive engagement and collaboration, even amidst significant structural changes. Also, the decision to retain the G o d r e j b r a n d a c r o s s b o t h branches reaffirms a commitment to shared heritage and values, providing a sense of continuity and identity amid transformation. This continuity not only strengthens the brand’s equity but also fosters trust among stakeholders. Leveraging division can be a catalyst for innovation, succession planning and harmonious governance, allowing family businesses to unlock new avenues for growth and ensure their legacy endures for generations to come. visions within the family but also positions each branch to pursue its strategic objectives more effectively. If one has to observe closer, one of the key benefits of such divisions in family businesses is the potential for enhanced growth and innovation. By allowing different branches of the family to independently manage and steer specific segments of the business, the split enables a sharper focus on core competencies and markets. In the case of the Godrej family, this could translate into accelerated growth opportunities for both branches within their respective sectors, be it consumer products, real estate or other industries. It should also be said that the division of responsibilities within the Godrej family paves the way for smoother succession planning and leadership transitions. With designated indiv iduals assuming key leadership positions within each branch such as Pirojsha Godrej slated to succeed Nadir Godrej as chairperson of the Godrej Industries Group or Nyrika Holkar taking charge as the Executive Director of the Godrej E nt e r pr i s e s Group, there i s a c l e a r pathway for c ont i nu it y and gover - T JOTTING Plus The decision to retain the Godrej brand across both branches reaffirms a commitment to shared heritage and values UNITED WE STAND, DIVIDED WE GROW Navigating growth and kinship, the Godrej Group’s split signals a positive trend for family businesses By Noor Fathima Warsia Photograph by Satheesh Nair

14 | B W BUSINESSWORLD | 18 May 2024 The Uttar Pradesh Gamble Political circles close to the ruling Bharatiya Janata Party (BJP) in New Delhi are agog with theories about sabotage since the party declared Parmeshwar Lal Saini as its candidate from the Sambal Lok Sabha constituency in Uttar Pradesh (UP). In 2019, Saini had lost the elections from the same Lok Sabha seat on a BJP ticket. What is more, he had been unable to win the UP Vidhan Sabha (state elections) from the Bilari seat on a BJP ticket even in the midst of a Modi wave. Recently, Hindi language newspaper Amar Ujala carried a story about how Saini’s son had filed a case against some for circulating allegedly obscene videos of his father. Then, there are other negative videos of Saini floating on social media platforms. Given the circumstances, there is a view among BJP’s party workers that this time too Saini’s chances do not seem too bright. Yet, a ticket to him by the top brass has spun a conspiracy theory within the party about an attempt to restrict the seat tally of the BJP in UP, so that tremors are felt in New Delhi. With 80 Lok Sabha seats, UP plays a crucial role in the Lok Sabha elections in which the BJP anticipates winning between 350 and 400 seats. Of Hot Money, Cold Candidates & More COLUMN By PALAK SHAH Gossip & Tales Anxiety is high within factions of the ruling Bharatiya Janata Party about some of its election candidates. Meanwhile, a mega acquisition deal is stonewalled. Read the buzz from markets and the corridors of power Photograph by Jesadaphorn

15 | B W BUSINESSWORLD | 18 May 2024 Regulatory Arbitrage The Hinduja Group’s bid to takeover Reliance Capital has hit a roadblock, thanks to objections raised by the Insurance Regulatory and Development Authority of India (IRDA). The insurance regulator wants to know the hidden ultimate beneficiaries of the Hinduja Group, who intend to gobble up the general and life insurance businesses of Reliance Capital. The Hinduja group’s Rs 9,661 crore bid is routed through a Mauritius-based entity, IndusInd International Holdings, that has 600 shareholders, who are unknown to the Indian authorities. Moreover, the IRDA has no clue about any of the businesses of Asia Enterprises LLP, which is part of the acquirer and the regulator says that the structure of the acquisition scheme is vague and not even final in keeping with the deal documents submitted by the acquirer and so, subject to change. But even as a cloud hangs over the key aspects of the deal going by the objections raised by the IRDA, stock market regulator, the Securities and Exchange Board of India (SEBI), was quick in approving the Hinduja Group’s takeover of Reliance Capital’s Wealth Management Business. Clearly, some regulatory arbitrage does exist in the case of large takeover deals. BSE’s Share Price Frenzy Share prices on the BSE have been riding a wave of revival in derivatives trading. The BSE now commands a market-cap of more than Rs 38,000 crores. On the National Stock Exchange of India Limited (NSE Limited), the price to earnings (PE) ratio of BSE Ltd is shown as 54.96 but the adjusted PE is 113. Data shows that the majority of the volume churn on the exchange is happening on the day of derivative expiry when the spreads are too thin and trading frantic by a few brokers. Most recent weekly trade data between 8 April and 12 April shows that 92 per cent of Sensex index options volume during the entire week was on the day of expiry. Similarly, 88 per cent of the BSE Bankex index options volume happened on the expiry day. Comparatively, only 27 per cent of the index options volumes for Nifty during the week and 34 per cent of the total index options volumes for the Nifty Bank index happened on the expiry day while the rest were spread across the week. Recently, the NSE has also cut down on its transaction charges and has a huge scope for further reduction. Also, the bottom line of the exchange, that has more derivative volumes, will be affected severely since they have to pay huge sums to SEBI as transaction fee. The NSE last year paid several hundreds of crores based on the notional turnover of options. The BSE has a long way to go before derivatives speculation on its platform transforms into any meaningful earnings. Hot Money, New Avatar I f the recent controversies involving Hari Tibrewal is anything to go by, then it is quite clear that Participatory Notes (P-Notes), the hot money instruments in India, have been replaced by structured companies registered in Dubai, Mauritius and other tax havens. Several raids by the Enforcement Directorate (ED) have revealed that Tibrewal channeled much of the proceeds he and his accomplices generated through the cricket betting App Mahadev, into India’s stock markets. The P-Notes were once instruments of choice of politicians, hawala operators and rogue elements for trading in the Indian capital markets. Tibrewal’s modus operandi shows that this method has been replaced by structured vehicles i.e. entities in Dubai and other offshore destinations. Tibrewal’s holdings in nearly two dozen companies show that he channeled hawala or illegal betting money into the stock markets via holding companies and manipulated the stock prices of several small and mid-cap companies. Some weeks ago, SEBI chief Madhabi Puri Buch said that the regulator was investigating rampant manipulation in small and mid-cap stocks, but that nothing has come out yet.

16 | B W BUSINESSWORLD | 18 May 2024 S THE WORST OVER for the Chinese economy? Some economists think it is. Others disagree. The optimists point to higher than expected GDP growth of 5.3 per cent in the January-March 2024 quarter. Manufacturing activity has meanwhile moved into positive territory with the purchasing managers’ index (PMI) recording 50.8 for March 2024. That’s the first time in seven months that the manufacturing PMI has gone above 50, a reading which separates expansion from contraction. Not all is rosy though. Trade volumes remain subdued. Foreign direct investment (FDI) plunged 26 per cent in January-March 2024 over the year-ago quarter. The real estate sector remains embroiled in crisis. Foreign investors have been unnerved by Chinese President Xi Jinping’s crackdown on global companies. Till a few years ago Apple manufactured nearly 95 per cent of its iPhones in China. That has fallen to 75 per cent and is set to reduce to 65 per cent by 2026. India now accounts for manufacturing over 12 per cent of all iPhones. That figure is expected to rise as high as 25 per cent in the next three years. Tesla’s decision to start manufacturing electric vehicles (EVs) in India will broaden the EV market in the country where Tata has taken an early lead. China’s problems are largely man-made. Xi’s pivot to state capitalism from private capitalism has unnerved both foreign investors and local Chines businesses. They know what befell Jack Ma, the founder of Alibaba, when he criticised China’s economic policies. Real estate, however, remains China’s most intractable worry. According to Goldman Sachs, private developers face a financing shortfall of $553 billion. The rest of the Chinese economy though is showing signs of mild recovery. Exports are up. Factory investment grew 10 per cent in January and February 2024 while manufacturing in computers and electronics was up by 15 per cent for calendar 2023. These green shoots might, however, quickly turn brown if geopolitical tensions in Europe and the Middle East rise. China’s economy is still driven by exports of over $3 trillion a year, despite trade restrictions imposed by the United States. As a result, Chinese exports fell from $3.73 trillion in calendar 2022 to $3.38 trillion in calendar 2023. Like ally Russia, China is closely monitoring the 2024 US presidential election. In a recorded interview, Russian President Vladimir Putin said he would prefer a Joe Biden victory because Biden is a more old-school, mature and predictable politician than the mercurial Donald Trump. Who does Xi prefer? Unlike Putin, Xi keeps his opinions to himself. China blames Trump for starting the trade war with China five years ago. But Xi is also furious over Biden’s sales ban of advanced semiconductor chips to China. Ultra-thin chips below 3nm are critical in devices powered by advanced artificial intelligence (AI). The Biden administration though is pragmatic. It has revived high level contracts with Chinese leaders. The two countries’ defence and foreign ministers are in regular touch. US Secretary of State Anthony Blinken is scheduled to visit Beijing shortly. China’s Green Shoots I 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

18 May 2024 | B W BUSINESSWORLD | 17 cent in GDP in the January-March 2024 quarter, other signs point to an uncertain recovery for China’s broader economy. Deflation is a major worry. It reflects a lack of confidence among consumers in the economy and their own financial prospects. A significant portion of the wealth of most Chinese citizens is invested in real estate. With realty prices falling and several housing projects incomplete, the crisis in consumer confidence could be a dampner in China’s economic recovery. Deflation also signals over-capacity across industries. The combination of too little demand chasing too much supply could take years to rebalance, especially if the cash crunch among developers keeps the real estate sector in a prolonged downturn. Despite economic reverses, China has doubled down on spreading its influence globally. United States agencies report that cyber attacks by state-backed Chinese hackers have intensified as the US presidential election draws near. It was revealed recently that China has spent over $2 billion in grants to US universities to gain influence with US-based academics. Chinese nationals now occupy senior positions in virtually every United Nations agency, ranging from the UN High Commissioner for Refugees (UNHCR) to the Food and Agriculture Organisation (FAO). China is using its hard and soft power to position the country as the world’s leading superpower, supplanting the US by 2049, the centenary of the founding of the People’s Republic of China (PRC). That goal could look utopian unless Beijing gets its economy moving from sprouting green shoots to achieving sustainable growth. Washington is closely monitoring China’s reaction to the Iran-Israel conflict. Xi has invested personal capital in arranging an entente cordiale between the Sunni and Shia powerhouses in the Middle East – Saudi Arabia and Iran. China has been guarded in its public response to the conflict but in private Xi has counselled both Tehran and Tel Aviv to de-escalate. For Xi it’s vital to keep trade flowing in the troubled Red Sea where ships are continuing to come under attack by Houthis in support of Palestine. Xi’s key concern remains the West’s accelerated move to de-risk from China. The US-led ban on advanced semiconductor chips is forcing US chip manufacturers to sell lower capability chips to Beijing. According to news reports, “Intel will release two AI chips with reduced capabilities for the Chinese market in order to comply with US export controls and sanctions. The two chips, HL-328 and HL-388, are scheduled for launch in June and September.” Nvidia too has plans to sell three China-specific chips after the US late last year tightened a rule capping the capabilities of AI chips that can be shipped to China. An Uncertain Recovery Despite the unexpected spike of 5.3 per Despite economic reverses, China has doubled down on spreading its influence globally. United States agencies report that cyber attacks by state-backed Chinese hackers have intensified as the US presidential election draws near. It was revealed recently that China has spent over $2 billion in grants to US universities to gain influence Photograph by Gints Ivuskans Photograph by Prim Discovery

18 | B W BUSINESSWORLD | 18 May 2024 yond statistics, identifying far-reaching impacts for businesses, policymakers, and society at large. The study equips the ecosystem with detailed information to translate insights into actionable strategies that are both dynamic and transformational. Analysing income distribution trends of the last 25 years reveals a nuanced narrative. Despite strides in income distribution, the past decade has witnessed a resurgence of inequality, illustrated by a concerning trend of “K-shaped growth.” Understanding consumption dynamics goes beyond macroeconomics. India’s consumer landscape encompasses metro, urban, semi-urban, and rural markets, each serving distinct segments. Micro-level changes in behaviour are vital, with the digital revolution empowering small-scale retailers and consumers alike. Real change originates from below, not just from the wealthy or traditional middle class. Comprehending consumption in India necessitates a holistic approach, considering cultural nuances, economic disparities, and technological influences. This often-overlooked complexity reflects a gap in insight among both businesses and economists. Rurban: Rural & urban India Fusing: In the fusion of rural and urban lifestyles, India’s middle class embodies both a quest for premium goods and a deeply ingrained value consciousness. Urban areas witness a surge in discretionary spending, thriving ecommerce, and demand for electronics, fashion, and entertainment. Brands delivering premium experiences flourish here. In contrast, rural India prioritises essentials, emphasising value for money. This tale of two Indias highlights the importance of a nuanced understanding of the consumers. Understanding these dual consumer landscapes is vital. Brands catering to both aspirational urbanites and value-conscious rural consumers are poised for success. India’s consumption narrative promises ongoing growth and evolution, weaving together diverse consumer preferences. COLUMN By Vikas Singh THE LATEST CONSUMER data paints a captivating picture of India’s evolving market, revealing a story of a nation on the move. It unveils a fascinating story about spending habits, regional preferences, and the rise of a new demographic. While the tired trope of India being a “poor country with rich people” might hold some statistical truth, the consumption data fails to capture the dynamic complexities of a nation on the cusp of a major economic transformation. Beyond the Numbers: Navigating Consumer Realities: Traditionally, consumption patterns have been simplistically tied to income levels and urban or rural distinctions. However, the study highlights the inadequacy of this perspective. Consumption habits are influenced not only by economic factors but also by social and cultural attributes, as well as an individual’s perception of life and their societal position. A Crux study, based on an extensive sample of 26,000 consumers, 120 experts, across 289 districts, delves deep. It’s a beacon for stakeholders, guiding decisions with nuanced understanding of trends, preferences, and economic factors. This comprehensive examination provides valuable insights extending beThe author is an economist and columnist INDIA’S NEXT BILLION CONSUMERS: WHO ARE THEY, WHAT DO THEY WANT?

18 May 2024 | B W BUSINESSWORLD | 19 divide, aiding ecommerce growth, crucial for countries like India. Progressive taxation allocates resources for social programmes tackling poverty and inequality. Cash transfers, subsidised housing, and education scholarships form a safety net. Government spending on public services like healthcare and education fosters equal opportunities for all, levelling the playing field.Addressing income inequality is paramount. While a growing consumer class signals progress, it also underscores a significant income gap. Policymakers must champion inclusive growth through job creation, skill development, and social safety nets. Consumption Story at the Beginning of the Curve: India’s consumer landscape brims with promise, yet unleashing its full potential demands concerted efforts from businesses, policymakers, and civil society. Embracing sustainable practices, policymakers fostering inclusive growth, and civil society promoting responsible consumption are imperative. With a shared commitment to equity and progress, India can chart a future where consumer prowess heralds a tale of shared progress and a rising tide that lifts all boats. Demographic Shifts: Beyond Age and Income: Looking beyond traditional demographics like age and income brackets, the study reveals the emergence of exciting new consumer segments. We could be witnessing a rise in “digital natives” – young, tech-savvy individuals who heavily influence household purchases. This segment thrives online, demanding seamless digital experiences and innovative products. As India navigates these shifts, brands must adapt, ensuring relevance across both urban and rural markets to thrive in the dynamic landscape of consumerism. Forget a static snapshot – India’s consumption story is a dynamic odyssey fuelled by a potent combination of economic expansion and a dynamic demographic shift. The transformation is multifaceted. Here’s a glimpse into the forces shaping this consumer odyssey: l Rising disposable incomes: Consumers have more to spend, seeking diverse products and services. Businesses catering to these needs will thrive. l A youthful surge: A digital-first generation is demanding innovative products and seamless online experiences. Embrace technology to capture this market. l Shifting preferences: From value-driven to experience-oriented, Indian consumers are exploring new options. Businesses must adapt with a data-driven approach and personalised offerings. Learning from the Pack: Lessons from Growth Economies: India’s economic journey can be enriched by studying growth champions of the past. Could targeted tax breaks for rural businesses or dedicated economic zones, accelerate India’s balanced growth? Supporting the vital MSME sector is equally crucial. Unlocking rural potential through infrastructure investments, agricultural advancements, and micro-enterprise promotion can create a vast consumer base, ultimately fostering inclusive and sustainable economic expansion. Investing in infrastructure fuels the consumer economy, linking remote areas to urban centres and expanding market access. Digital infrastructure investments bridge the digital Consumption habits are influenced not only by economic factors but also by social and cultural attributes, as well as an individual’s perception of life and their societal position Photograph by LiudmylaSupynska/CANVA

20 | B W BUSINESSWORLD | 18 May 2024 OVEREIGN CREDIT ratings play a vital role in evaluating a country’s creditworthiness, yet concerns persist regarding the credibility of the current dominant agencies – S&P Global Ratings, Moody’s, and the Fitch Group. Despite their significant market share, these agencies have faced criticism for past failures, particularly during the 2007–2008 global financial crisis, and for occasionally misjudging economic collapses of a few nations despite the high ratings given to them. While the involvement of external agencies in reviewing a country’s economy promotes transparency, it also prompts questions about the objectivity and reliability of their assessments. Key factors such as GDP growth, per capita income, inflation management, external debt management, economic development, and history of defaults are integral to sovereign credit ratings. Nevertheless, the dominance of a select few agencies in this process can compromise the diversity and independence necessary for accurate evaluations. It’s undeniable that high credit ratings facilitate easier access to funds from the international bond market and attract foreign direct investment, crucial for a country’s economic growth. These ratings significantly influence how foreign investors perceive a nation’s creditworthiness, impacting the cost of borrowing overseas capital. This ripple effect extends to Indian businesses seeking international finance, often closely tied to the nation’s overall rating. In light of this, India has consistently advocated for transparency and reform in the parameters utilised by global credit rating agencies, emphasising the need for assessments to reflect the countries’ true capacities and willingness to meet debt obligations. Even though India’s rating has remained stagnant due to entrenched perspectives, it’s striking to observe that heavy-debt laden nations like the United States benefit from notably lower interest rates on their debt, underscoring disparities in the evaluation process. Achieving objectivity requires rating agencies to embrace a realistic and transparent framework, particularly when evaluating developing countries and emerging markets. This involves delineating objective metrics from subjective analyses, like simulations and stress tests, to ensure a fair and precise assessment universally. S Global South & India Need Unbiased Sovereign Credit Rating Agency (A)muse & Musings By Srinath Sridharan

18 May 2024 | B W BUSINESSWORLD | 21 metrics, often determined by a limited group of experts, lack transparency and may not effectively capture a sovereign’s commitment to fulfilling obligations. This overemphasis on subjective measures presents challenges for developing economies like India, to fight the western bias. Despite having more foreign exchange reserves than net foreign exchange debt, India’s sovereign credit rating remains slightly above speculative grade. India’s performance in meeting global obligations has been judged as insufficient, and interactions with global rating agencies have not led to the desired enhancements. In contrast, China has taken a divergent path, with its own rating agencies expanding internationally since 2012. It’s time for an independent rating agency, free from historical biases, to re-evaluate the sovereign rating process. Although this idea has been discussed at BRICS Summits, tangible progress has been limited. Existing alternatives, such as ARC Ratings and various regional agencies, have made little impact. Given India’s growing global importance, now presents an ideal moment for a domestic credit rating agency to enter this arena. This initiative will demand dedication and resources, with a focus on key parameters such as economic structure, fiscal strength, external linkages, and governance quality. The approach should be data-centric, reducing subjectivity and prioritising actual risk assessment over perceived risk. The establishment of an independent and unbiased sovereign credit rating agency will offer numerous benefits to the Global South. Firstly, it will provide these nations with fair and accurate assessments of their creditworthiness, enabling them to access international capital markets on more equitable terms. By reducing reliance on ratings from dominant agencies, which may carry biases or overlook the unique strengths of these economies, countries in the Global South can attract more foreign investment and secure financing at lower costs for development projects. Overall, a fair and unbiased sovereign credit rating agency tailored to the needs of the Global South will contribute to greater financial inclusion, economic stability, and prosperity for these nations, ultimately helping to bridge the gap between developed and developing economies. It’s time for an independent rating agency, free from historical biases, to re-evaluate the sovereign rating process All three global rating agencies have assigned India the lowest investment grade rating. Fitch, for instance, affirmed India’s sovereign rating at “BBB-’’ with a stable outlook, citing robust growth and resilient external finances. However, they maintain that India’s stronger fundamentals are overshadowed by the government’s weak fiscal performance, burdensome debt stock, and the economy’s low GDP per capita. Interestingly, despite a higher debt load and debt-to-GDP ratio, the US enjoys a higher sovereign rating. For fifteen years, India’s sovereign rating has remained unchanged, despite a global-best economic growth rate. When India had sluggish policy reforms, corruption scandals, and the twin balance sheet problem, it deterred foreign investors, leading the big three credit rating agencies to downgrade India to the lowest investment grade. However, since then, over the past decade, India has emerged as the world’s fifth-largest and fastest-growing economy. India is an attractive market for foreign investors, as shown by the inward investments, and a robust capital markets. Despite this progress, global loan and bond markets continue to assess India’s risk as lower than the assigned ratings suggest. Furthermore, certain Western economies with a history of defaults have received higher ratings than India. This highlights a disparity in the evaluation process. Quantitative analysis indicates that more than half of credit ratings are shaped by qualitative factors. About 20 per cent weightage of sovereign ratings hinge on subjective indicators such as governance and political stability. However, these The author is a policy researcher & corporate advisor

22 | B W BUSINESSWORLD | 18 May 2024 HERE’S NOTHING new about paradoxes in India! But, what I saw this morning in our neighbourhood park prompted me to write a column about this strange ‘simultaneous reverence and abuse of our trees’. I have often seen several people coming to the park everyday with containers of water – and at times milk too – going round this ten-year-old beautiful peepal tree, do reverential obeisance / say prayers and put water at its base. Some of them – particularly girls – even do the same routine with milk and also tie threads and pieces of red cloth around the considerable girth of the tree. Now, we know about the common belief that peepal trees give out oxygen 24 x7, just like neem trees, and it is good to treat them with respect – particularly when the whole world is struggling to fight the rapid march of climate change and its disastrous effects on our health and economy. Some of these do gooders have also kept open earthen pots at a couple of places in the park and fill them daily with fresh water for the birds, especially at the onset of summer. Adoration & Abuse But what surprises me is that people also routinely deposit their discarded moorties (idols), pictures of gods, flowers, sweets, fruit etc. at the very point where others put water and milk. Some even leave lit oil lamps at the place.! Isn’t that an irony that we abuse and revere our precious trees like that? The Junk Remains for Days This junk often remains near the tree for several days as the sweepers are also wary of cleaning the spot – thinking it is a spot for prayers. Yes, sparrows, pigeons, crows and stray T We Revere Our Trees and Also Abuse Them SUSTAINABILITY By Krishan Kalra Column

18 May 2024 | B W BUSINESSWORLD | 23 flowers and asthies landing into our rivers that we revere! Sustainable Alternatives Admittedly some people have realised the folly and are finding alternate ways of disposing off these flowers and asthies. An excellent educative example is the practice followed at Dayal Bagh – the Radha Soami residential enclave at Agra. They have dug wells within the complex, cremations are done near these wells, very little flowers are put on the arthi (biers) and after the cremation, flowers go into composting pits and asthies collected on day four go into the wells. Whenever one well gets filled up, it is sealed. So far they have sealed only one well and the second one is three-fourths full. Sustainability being a major concern with this enlightened community, the bier is carried on a hand-pushed wooden cart. They grow their own wheat and vegetables. Tree planting has been done on a massive scale – both fruit bearing ones and others near the wells, as well as on the banks of Yamuna to prevent soil-erosion. How I wish more people were sensitised about the sustainability aspects of dumping all sorts of things at the base of peepal trees, temples and crematoria. We can all learn lessons from the Dayal Bagh example and stop abusing our sacred trees, rivers and idols of gods. But what surprises me is that people also routinely deposit their discarded moorties (idols), pictures of gods, flowers, sweets, fruit etc. at the very point where others put water and milk. Some even leave lit oil lamps at the place.! Isn’t that an irony that we abuse and revere our precious trees like that? dogs do visit for a feast whenever there’s mithai and fruit! There is almost always a beeline of ants; so perhaps we are helping the food chain for many species. The Temple Routine And we do the same with our holy moorties at the most famous of temples. Visit Siddhi Vinayak in Mumbai or Mata Vaishno Devi near Jammu, Sai Baba’s shrine at Shirdi … all idols are painstakingly cleaned immaculately at 3.30 a.m. or 4 a.m. in the morning with huge quantities of water and milk. Pray, how can milk clean? The ornaments are polished sparkling clean, glorious clothes are changed, the area around the sanctum sanctorum is also washed thoroughly, all this before the devotees start queuing up for darshan. Then, for the next 16 to 18 hours, we pile the moorties with copious quantities of Prasad – sweets and fruits, agarbattis, flowers, brocaded strips of red cloth, camphor balls and anything else that the pilgrims bring in baskets of all sizes. The temple closes to the public for the night for just a few hours – and early the next morning the same routine starts. Cremations on River Banks A pretty much similar story is repeated during cremations on river banks. Mortal remains arriving at the crematoria – many on the river banks – are bedecked with copious quantities of flowers; these are removed before the pyre is lit and after the ceremonies are over, all these heaps of flowers are dumped into the river without much thought about how our ‘holy’ rivers are being polluted. The same thing happens with the asthie (bones) collected on the chautha (fourth day). With nearly 25,000 deaths every day in India, and 80 per cent of these being of Hindus, you can imagine the bewildering amount of The author is Trustee of the Climate Project Foundation, India – country chapter of the movement started by Al Gore. He is past president of AIMA and member BOG of IIMC Photographs by Krishan Kalra

24 | B W BUSINESSWORLD | 18 May 2024 EVELOPING n e w drugs is a challenging endeavour. It is a process that requires years of basic research to characterise new therapeutic molecules and validate them in clinical settings. The unpredictability of biology and physiological variations among individuals makes the successful introduction of a new therapy into the market a daunting task. Large firms in the United States (US), despite incurring billions of dollars in this process, have a success rate of less than ten per cent. Especially as the regulatory environment in the US tightens and less capital is available for new biotech ventures, US biotech companies must seriously re-evaluate their approach to testing new therapeutics. While US firms may have a competitive edge in the scientific development of new therapeutics, the principal driver of costs and the most common point of failure is the real-world, clinical testing of these products. This pain point is likely to be exacerbated in the coming years due to the shift towards biologics – a type of drug made using living organisms – which are far less predictable in terms of their expected effectiveness. Enter India. Over the last few decades, India’s aggregate population has grown and so has the diversity of prevalent diseases within the population. Its infrastructure, specifically digital infrastructure and its penetration to the individual level, has witnessed a phenomenal growth. Additionally, India’s pharmaceutical manufacturing capability has also expanded, with the country often called ‘the world’s pharmacy’. With India’s rise as a global powerhouse in healthcare and increasing domestic pressures on the US biotech industry, a US-India partnership in therapeutics development would be hugely beneficial for healthcare worldwide. Many US biotech firms focus on chronic or late-life diseases such as diabetes, cardiovascular disease, and cancer. As India’s population has grown and basic healthcare The Time for a US-India Partnership in Biotech is Now improved, the disease burden has shifted towards these chronic conditions. For instance, ischemic heart disease prevalence increased by 130 per cent from 1990 to 2016, with diabetes projected to double by 2045 and new cancer cases expected to reach about two million by 2040. A diverse disease pool at the scale of India’s population yields extraordinary opportunities for large clinical trials. Moreover, India’s number of clinical investigators doubled from 2015 to 2020 and is slated to further double by the end of 2024. Leveraging India’s healthcare ecosystem and growing clinical research capabilities, US biotech firms can expedite therapy development, gain insights into disease progression, and understand patient preferences across diverse populations. Beyond a well-positioned patient population, India’s growing digital infrastructure offers significant opportunities for clinical trial management. Unlike the US, where antiquated technologies hinder patient recruitment and monitoring due to regulatory barriers, India’s rapid adoption of digital technologies at both the organisational and individual levels offers distinct advantages for conducting ARTHSASTRA By Arman Sharma & Amit Kapoor Clockwise from the left : Amit Kapoor D (L) and Arman Sharma

18 May 2024 | B W BUSINESSWORLD | 25 trials effectively. With 71 per cent mobile device penetration (projected to reach 96 per cent by 2040) and the resounding success of nationwide digital initiatives like Aadhar and the Universal Payments Interface (UPI), India has demonstrated excellence in managing digital platforms at scale. US biotech firms can leverage this capacity to efficiently recruit participants, remotely monitor patient health, collect real-time data on treatment adherence and outcomes, and streamline trial logistics. Through the National Digital Health Mission, India is already implementing technologies such as wearable devices, telemedicine, and interoperable electronic health record systems, enabling seamless integration of clinical trial activities with routine patient care. While India’s population-level health measures and enhanced infrastructure are relatively recent developments, its historical forte in healthcare has been pharmaceutical manufacturing. Supplying 20 per cent of the world’s generic drugs and being home to the largest vaccine manufacturer in the world, India has a long history of innovation in therapeutic manufacturing technology. As US biotech firms increasingly make the switch to biologics, there are likely to be major challenges with domestic manufacturing. Biological therapeutics manufacturing often requires the maintenance of live cells which is an expensive and resourceintensive activity; by contrast, Active Pharmaceutical Ingredients (APIs) / pharmaceutical precursors are abiotic and stable, making them far cheaper to manage. India’s competitiveness in therapeutic manufacturing has come from the process innovation that Indian firms have undertaken to drive down costs. As clinical trials and data sharing with US biotech firms are occurring in India, there exist opportunities to, in parallel, innovate in the manufacturing space. This would help clear a massive hurdle to scale new therapeutics if and when they make it to market. This will also help developers create therapies with manufacturing requirements in mind to further improve the probability of long-term success. For this to be a fruitful partnership, however, the Indian regulatory establishment needs to be especially prepared for addressing potential Intellectual Property disputes and ethical issues surrounding clinical trials. The Indian Council of Medical Research (ICMR) has experience in facilitating international partnerships, the 2017 development of the ICMR-Pfizer Center for AMR Research and Education being a case in point. It can leverage this experience to build a legal team/framework to settle monetary disputes between US biotech firms and Indian CROs who could be critical in the refining of therapies. Fair and transparent policies, made clear to US biotech firms before entry into India, will be crucial for a long-term sustainability of the partnership. Additionally, the government will have to take measures to safeguard Indian patients. The movement of clinical testing to Lowand Middle-Income Countries (LMIC) settings can have huge benefits for the host country’s population; it can provide jobs and bring underserved people into the healthcare system. However, there is a risk that poor and uninformed patients are given unsafe treatments without appropriate disclosures or compensation. A strengthened patient-focused supervisory apparatus, one that is involved with every step of trials, is essential for safe and productive trials. By harnessing India’s diverse healthcare landscape, its robust digital health infrastructure, and its legacy of manufacturing innovation, US biotech firms can overcome key challenges in drug development, including high costs and uncertainties in clinical testing and manufacturing of biologics. With a prepared regulatory environment in India, this partnership will be transformative for global healthcare. Amit Kapoor is Chair, Institute for Competitiveness and lecturer, USATMC, Stanford. Arman Sharma is Dr Kapoor’s student at Stanford While India’s population-level health measures and enhanced infrastructure are relatively recent developments, its historical forte in healthcare has been pharmaceutical manufacturing Photograph by Vectordreamsmachine

26 | B W BUSINESSWORLD | 18 May 2024 Why did you launch Yodda Eldercare in India? Following my father’s passing from complications of a paralytic stroke and my mother’s battle with breast cancer, I became a pillar of support for friends abroad during the pandemic. Witnessing the decline of the joint family system, I launched Yodda Care in October 2021. Yodda Care offers a comprehensive range of services, from emergency response to daily tasks, managed by Yodda employees and partners. Our second offering, Yodda EnablePlus, empowers seniors across India with DIY support networks or professional concierge services for routine and emergency assistance. How do you leverage technology in these services? As a tech-forward firm, our operations hinge on advanced software and ISOcertified processes. Our Service Request Management System facilitates swift handling of all requests. In emergencies, it provides crucial data like insurance and KYC details for prompt hospital admission. Our cloud-native systems prioritise security, with encrypted data ensuring comprehensive protection. What unique services do you provide? Our user-friendly systems enable one-touch access for routine tasks or prolonged presses for emergencies. Integrated with life-saving devices like GPS-based SOS pendants and smart assistants, our apps are accessible on smartwatches. All systems connect to the Central Emergency Command Centre. With a robust call centre, elders can easily reach us via phone. We’re proud to have ex-Indian Army veterans leading our command centre, making us the first emergency responders. Tell us about your collaboration with corporates. We recently partnered with GlobalLogic to offer comprehensive eldercare benefits to their employees. We are in conversations with several empathetic MNCs and large Indian conglomerates that espouse the employee-first philosophy at work. What are your plans for Yodda? With Yodda EnablePlus being a moderated platform that leverages one’s trusted support network of friends, relatives and neighbours to assist them with routine assistance and emergency response, we plan to expand these services to anyone using a smartphone, like women and children. It will be an upgrade to the existing app and make these services available to people of all age groups, supporting the safety and security of all family members. How can policymakers support making such services more affordable? Elder care services should be tax-free. Banking regulations often hinder fund transfers from abroad for children supporting their parents’ expenses through services like Yodda. Convenient fund transfer provisions are needed to facilitate parental support. IN CONVERSATION I n an exclusive interaction, TARUN SHARMA, the Founder and CEO of Yodda Eldercare, discusses his journey in restructuring the elder care industry through Yodda “WE ARE REVOLUTIONISING ELDER CARE MARKET IN INDIA”

28 | B W BUSINESSWORLD | 18 May 2024 OST COMPANIES recognise that people are key to their success. Competition is all about the war for talent. Higher compensations can, in many cases, attract that brilliant leader or the tech genius, but a competitor may well offer even more. This race is financially draining and not really a great strategy. Offering perks is another approach. However, new tax laws have considerably diluted the attractiveness of conventional perquisites such as a company car, leased housing, holiday allowances, etc. In any case, these were common and, therefore, not a winning differentiator in the talent battle. Nor, for that matter, are attractive corner offices with a great view or a daily office lunch catered from the best restaurants. What, then, can be the magic formula? Memberships of gyms or exclusive clubs used to be special but are now becoming routine, as are health check-ups. A yet uncommon perk is admission for children in prestigious schools; though difficult to guarantee, it has considerable value. Special leave for children’s milestone examinations (Class 10 and 12) is another M perk that may be attractive. As in many areas, innovation is necessary: unique perks which are different from the run-of-the-mill ones could be winners. Amongst these may be mentorship and coaching, since they help in professional growth and career advancement. A stint in a top-rung foreign university is attractive: it may or may not help new learning, but has great boasting value (“When I was at Harvard this summer” trumps “Guess whom I met while at the Wimbledon last week”). Of course, free tickets for the full family for well-known events – like the cricket or football World Cups, or a Taylor Swift concert – can be very attractive perks. The concept of pets as family members has now been taken to the next level by a company which offers “pawternity leave” (presumably after acquisition of a new pet): a yet-unique perk. UNIQUE PERQUISITES Going beyond these, organisations have to think up even newer, powerful talent-magnets, based on unique or peculiar perquisites. Here are some suggestions: in Bangalore, free boat rides from home to office, shops, schools every monsoon and free water tankers every summer. The former could also be extended to senior employees in Chennai and Mumbai. Those in Delhi could be provided air purifiers in the office and home. Also, an office and plush guest house in Goa where the executive can be “temporarily transferred” during the pollution season. The transfer should serve to legalise the official purchase of tax-free tickets for the family and free stay for all at the guest house. In the scorching summer, the same can be done through an office and guest house in the hills – possibly in the Swiss Alps. For some, ego-perks may work better. To attract them, companies could think of ensuring an invitation to highprofile wedding-related events, or an invitation to a State banquet in Rashtrapati Bhavan. An award for outstanding social service or a detailed personal profile in a major business publication (or TV channel) might also work. To Chair the Board of an IIT or IIM is also now a boast-able recognition, if that can be arranged. A final one is a guaranteed tete-a-tete with an international CEO: Elon Musk, Jeff Bezos, even Bill Gates. The ultimate, of course, is a session with the Prime Minister (only if a photo is possible). Time for HR heads to think creatively about perks! Powerful, Peculiar Perquisites 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 By KIRAN KARNIK Photograph by Vector Story

18 May 2024 | B W BUSINESSWORLD | 29 F eatherlite, the pioneering name in workspace furniture solutions, recently opened an exclusive experience centre dedicated to showcasing the latest designs and trends in workspace design. Spanning an impressive 10,000 square feet, the newly unveiled Featherlite Experience Centre is housed at Featherlite’s – The Address, in Pallavaram, Chennai. The experience centre was launched over two days from the 12th to the 13th of April and is open to architects, interior designers, facilities management professionals and anyone who’s interested to see what the future of workspace design has to offer. A lively discussion conducted by CE Worldwide delivered an invigorating opening session on the 12th of April, while on the 13th of April, Team IIA shared their invaluable insights into the world of architecture & design. With a commitment to fostering creativity, collaboration, and productivity, Featherlite’s Experience Centre offers a comprehensive range of contemporary pods, workstations, chairs, and more. Each piece is thoughtfully crafted to embody the perfect synergy of functionality and style, catering to the diverse needs of modern work environments. “At Featherlite, we understand the pivotal role that well-appointed office furniture plays in shaping dynamic workspaces,” said Manohar Gopal, Director, Featherlite. “Our Experience Centre serves as a testament to our dedication to innovation and design excellence, offering a plethora of furniture solutions tailored to inspire architects, interior designers, and facilities managers alike.” Featherlite’s Experience Centre is more than just a showroom – it is a hub of design inspiration and ideas. From Height Adjustable workstations to Meeting Pods, visitors can explore an extensive array of options that can transform any workspace into a hub of creativity and productivity. “We believe that every workspace has its own unique story to tell,” said Lav Jawahar, Director, Featherlite, “With thousands of furniture solutions meticulously displayed within our Experience Centre, we aim to inspire our clients to craft spaces that not only reflect their brand identity but also respond to changes in work culture and environment, so as to foster innovation and success.” For more information about Featherlite and its exclusive Experience Centre, please visit www.featherlitefurniture.com or contact +91 9842220129. About Featherlite Featherlite is a leading provider of innovative workspace furniture solutions, dedicated to transforming ordinary spaces into extraordinary environments. With a rich legacy spanning 59 years, Featherlite continues to push the boundaries of design and functionality, offering a diverse range of furniture solutions tailored to meet the evolving needs of modern workplaces. nemployment. One of the chief thrusts of MEs is to regulate and provide a platform to e vulnerable groups of the society as the main ivers and empower the women and the youth start their enterprises. mall enterprise promotion has continued to main an important and integral part of Indian evelopment strategy well before the First Fiveear Plan. However, the sec tors faces nforeseen challenges. Some of the most ersisting constraints facing the sector, ominated by smaller units in the informal ctor, include poor or non-availability of loan nance, low levels of technology, inadequate hysical and economic infrastructure and sources to invest in quality search and adopt ew technology, and a policy of product servation for small scale industries. Poor onitoring of implementation and e�ect of rious small �rm policies has been an issue of oncern. The larger enterprises o�er a sti� ompetition to the small scale units in the sale fo u t p u t. Ap a r t fr o m t h e s e m a j o r mpediments, the sector faces a number of her problems like ine�cient management, on-availability of cheap power, burden of local xes, shortage of working capital and lack of emand for the products. The list is endless. MEshaveemergedasavibranttieroftheeconomy as they have already taken over as key contributors to country's GDP. The new shout out is the Make in India Campaign. Owing to the launch of �agship Make In India Campaign, Prime Minister Narender Modi has given way to a new national program designed to facilitate investment, cultivate innovation , augment pro�ciency in skill development, protect intellectual property and build Best-in-Class manufacturing infrastructure, there has never been a better time to make in India. India's small and medium-sized industries can play a big role in making the country take the next big leap in manufacturing. India should be more focused towards novelty and innovation for these sectors. The government has to chart out plans to give special sops and privileges to these sectors. As clearly seen, the hindsight and the future vision of SME's cannot be simply considered a smaller version of their larger counterparts as they have di�erent managerial styles, scale of operations, levels of independence and decision making characteristics. However these di�erences do not eliminate the opportunities of SME's to internationalize and gain �ight in the global market. SME sector development will continue to spread its wings and be an integral part of the development thrust and promotetheentrepreneurialcultureSpanning an impressive 10,000 square feet, the newly unveiled Featherlite Experience Centre is housed at Featherlite’s – The Address, in Pallavaram, Chennai Featherlite Unveils Premium Flagship Experience Centre In Chennai Redefining Workspace Design

30 | B W BUSINESSWORLD | 18 May 2024 OLIVIERO TOSCANI, a creative genius, may not be very vividly remembered now, but his work remains iconic and will never be forgotten. From his perspective, he was more of a photographer and less of an adman. His advertising was the stuff of legend. It was intensely loved, deeply reviled, diligently studied and poorly copied. Toscani’s disturbing images for several Benetton campaigns buzzed up the advertising circle in the nineties. His work created polar opinions, and he made the fractures of race, religion and inequality look like the giant canyons they truly were. He single-handedly created ‘shock advertising’. A priest kissing a nun, a smeared new born baby with his umbilical cord intact or a dying AIDS patient surrounded by family was a commentary on society more than advertising apparel. It made Benetton a brand known across the world. It also made other advertising seem so plain and boring— odourless, colourless and tasteless, if we may say so. GUEST COLUMN MARKETING ADVERTISING & By Shubhranshu Singh, Vice President - Marketing - Domestic and IB - CVBU, Tata Motors SHOCKVERTISING - CREATIVITY AT THE FARTHEST END OF IMPACT Gliding through the historical footprints of the brand Benetton, Singh writes about how Oliviero Toscani, the creative brain behind its work, went on to knock everyone's socks off and cement the brand to where it is today

18 May 2024 | B W BUSINESSWORLD | 31 Toscani was born in Milan in 1942. He studied photography and graphic design at the Kunstgewerbeschule in Zürich, graduating in 1965. After working for Elle, Vogue, GQ, Stern and other leading titles, he became a leading name, further garnering attention for his work for Fiorucci, Esprit and Chanel. Having said this, he never intended to do the regular stuff. Let’s just say that this is when the nail hit the head and Benetton was born. Luciano Benetton started the family firm in 1965 with his brothers Gilberto and Carlo when his sister Giuliana knitted a sweater for him. He liked it so much that he felt it was something they could do as a business. Until Benetton hired Toscani in 1982, the company had done no advertising whatsoever. The brand was already going international and there was an indispensable need to invest in making the brand well-known. Benetton and Toscani were firm in taking their brand message globally, across markets. To break in, they had to make certain that people saw their spirit was intense and that they had really arrived. Toscani’s first campaign was for a line of children’s clothes, but instead of using kids, he used teddy bears. In hindsight, it was a very soft kick-off. He first picked the theme of multiculturalism articulated as the ‘United Colors of Benetton’. Toscani’s disturbing images for several Benetton campaigns buzzed up the advertising circle in the nineties As he pushed the boundaries towards provocation, multiculturalism was never abandoned. An image of a black woman breastfeeding a white baby and many such images, such as a nun kissing a priest, mating horses, a bloodstained Bosnian soldier’s uniform, black and white wrists chained together, and the dying AIDS victim—all of these were comments without closure. While some saw it as bold and inspiring, others looked at it as gross and biased. Benetton and Toscani leveraged the shock and dissonance via smart PR. A stylish photography magazine, Colors was launched, as was a pioneering art school, Fabrica. Toscani saw his work as art. Advertising gave it exposure, acknowledgement and traction. Discomfiting scenes were not pointless. They raised unspoken questions. Fashion had become a trivial indulgence. Benetton made it stand for something bigger. The big difference lay in its communication. Toscani’s work created a unique genre but also raised the bar (and eyebrows) for others. In 1999, Benetton was judged the 10th most powerful brand in fashion. With fame and acceptance, Toscani didn’t peter down. Instead, his work became more ominous. His last campaign for Benetton featured men on death row. It blew up in the United States, with calls for a boycott of Benetton products. Sadly, in May 2000, Benetton and Toscani parted ways, ending an 18-year partnership extraordinaire. With Toscani’s exit, Benetton stuck to its knitting (pun intended), and its advertising settled into relaxed compliance. It was a leading player with a global footprint. But soon, rivals like H&M and Zara gained momentum and the Italian fashion brand became a slowpoke.

32 | B W BUSINESSWORLD | 18 May 2024 AMIDST India’s telecom re - naissance, the past 18 months stand as a testament to remarkable progress. With the official rollout of 5G services, providers witness burgeoning success, welcoming millions to the fast-paced world of 5G. Reliance Jio emerges as a titan, surpassing China Mobile in data traffic, handling an astounding 40.9 Exabytes in Q1 2024. Tefficient, a global analytics firm, confirms Jio’s dominance, with 108 million 5G subscribers, cementing its global stature. Notably, over 28 per cent of Jio’s data traffic stems from 5G users, a testament to their transformative value plans and enticing offers, propelling unprecedented subscriber growth. India’s voyage into the realm of 5G has simply been extraordinary. In just 18 months, the nation has emerged as a global frontrunner in 5G proliferation, with services spanning 738 districts. Indian telcos’ concerted efforts, deploying over 4.25 lakh Base Transceiver Stations (BTS), have propelled India into the top 15 markets globally for 5G media download speeds, as affirmed by Ookla. In India, the fervent embrace of 5G services continues its meteoric rise, with a base of 131 million subscribers, marking a transformative shift in the telecommunications landscape, promising boundless innovation By Ashish Sinha IN DEPTH RIDING THE FAST Booming Demand for 5G “Ericsson’s latest Mobility Report highlights India’s voracious appetite for data, averaging 31GB per smartphone per month by 2023. Projections indicate that 5G subscriptions will surge to 68 per cent within five years, with data traffic per smartphone reaching 75GB 5G GROWTH

33 | B W BUSINESSWORLD | 18 May 2024 IN JUST 18 MONTHS, INDIA HAS EMERGED AS A GLOBAL FRONTRUNNER IN 5G PROLIFERATION, WITH SERVICES SPANNING 738 DISTRICTS per month by 2029,” says Nitin Bansal, MD, India & Head-Networks, Southeast Asia, Oceania and India. Beyond speed, 5G heralds economic revitalisation, fostering innovation and growth through use-cases like Enhanced Mobile Broadband (eMBB) and fixed wireless access (FWA). Particularly FWA bridges digital divides by providing reliable, high-speed internet to underserved areas cost-effectively, Bansal adds. Anticipation surrounds the upcoming spectrum auction slated for June 6, yet experts foresee limited participation from telecom incumbents. Why the caution? Previous auctions witnessed substantial investments from major players like Jio, Airtel, and Vodafone Idea. This time, incumbents may adopt a more strategic approach, focusing on spectrum acquisitions in regions where existing frequencies near expiration. Notably, minimal rollout - DATA WAVE Photograph by Hello.artmagination.com

34 | B W BUSINESSWORLD | 18 May 2024 Akash M Ambani, Chairman, RJIL “Jio continues to maintain its network leadership and offer innovative digital solutions to multiple customer cohorts” 3||5G subscriber base: 131 mn, up by 30.8 mn 4G subscriber base: 719 mn, declined by 12 mn RJio’s m51% f up by 5Bharti’s market share: 28.8% for 4G + 5G subscribers, improved by 24 basis points (bps) VIL’s market share: 14.8% for 4G subscribers, down by 23 bps Industry wide 3G subscribers: declined 0.7 mn to 16 mn Highlights Numbers Game At the time of filing this report, the fourth-quarter numbers of listed telecom operators were awaited. However, significant trends have been analysed in detail up till the end of third quarter for the telecom service providers. Interesting trends emerge. In Q3FY24, consumer spend on mobile services rose 2.5 per cent Quarter-on-Quarter (QoQ) and 8.5 per cent Year-on-Year obligations for 5G spectrum are expected, exempting Jio and Airtel, having fulfilled their commitments. However, Vodafone Idea (VIL) and Adani Data Networks reportedly fall short of meeting 5G rollout requirements set by the Department of Telecommunications (DoT). Despite DoT’s authority to impose penalties, Vi’s financial strain prompts leniency from regulators. IN DEPTH 5G GROWTH

35 | B W BUSINESSWORLD | 18 May 2024 base declined by 12 million to 719 million. VIL’s 4G sub market share dipped 23bps QoQ to 14.8 per cent. Industrywide, 3G subs continued to decline (down 0.7 million QoQ to 16 million). In the third quarter of fiscal year 2024, 5G data usage made up 12.6 per cent of the total data usage. Overall data usage increased by 4 per cent compared to the previous quarter, reaching 49,543 billion megabytes. The growth in data usage was mainly driven by a 60.7 per cent increase in 5G data, which contributed 6,239 billion megabytes. However, 2G data volume decreased by 11.8 per cent, and 3G data volume decreased by 5 per cent. Bharti and VIL’s market shares for data usage stood at 33.1 per cent and 12.1 per cent, respectively. RJio’s market share was 54.2 per cent, showing an increase of 18 basis points. Industry minutes also saw a slight increase of 1.4 per cent to 3,307 billion. Bharti’s minute market share decreased to 35.1 per cent Jio Rules For the full fiscal year 2023-24, Jio reported industry-leading subscriber addition of 42.4 million during FY2024, and addition of 10.9 million during Q4 FY2024 outpacing competition. Reliance Jio also posted industry leading subscriber growth with net additions of 42.4 million during FY24. The company stated that the 5G adoption and home scale up drove data traffic to ~148 Exabytes in FY24. “Jio continues to drive India’s transition towards 5G with 108 million-plus subscriber’s now accounting for ~28 per cent of Jio’s wireless data traffic,” it said in a statement. “Jio continues to maintain its network leadership and offer innovative digital solutions to multiple customer cohorts. This is driving consistent outperformance in terms of subscriber additions and engagement levels,” said Akash M Ambani, Chairman, Reliance Jio Infocomm (RJIL) after the Q4 results. Eyes On Auction In the upcoming spectrum auction on June 6, the government plans to auction eight spectrum bands for mobile services at a base price of around Rs 96,317 crore. The DoT is also allowing bidders to surrender acquired spectrum after a minimum of 10 years. This will be closely watched by all stakeholders. (YoY) to Rs 54,700 crore. Net revenue of the operators also grew by 8 per cent YoY to Rs 52,300 crore dragged by higher intercompany settlements. Postpaid net revenue grew 8 per cent YoY on higher Average Revenue Per User or ARPU. Bharti Airtel’s (Bharti) postpaid subscriber base rose 48.6 per cent YoY to 48.3 million, and its postpaid sub market share was up 1,031 basis points (bps) QoQ at 56 per cent. 4G+5G subscriber market share for RJio was up 5bps QoQ to 54.1 per cent, while that for Bharti also improved 25bps QoQ to 28.8 per cent. Another noteworthy trend was the 5G subscriber base. It stood at 131 million, up nearly 31 million at the end of Q3FY24. However, the 4G subscriber market share: for 4G + 5G subscribers, 5 bps Total subscriber base: grew 0.7 to 1,158 mn DATA USAGE MARKET SHARE (%) Photograph by Tzido

36 | B W BUSINESSWORLD | 18 May 2024 IN CONVERSATION More than 18 months since the 5G rollout in India, NITIN BANSAL, MD, India & Head-Networks, Southeast Asia, Oceania and India talks to ASHISH SINHA of BW Businessworld about the growth of 5G, importance of fixed wireless access (FWA) and how it will play a significant role in providing reliable and highspeed internet connectivity to underserved areas, among other issues. Excerpts: “IN INDIA, 3 IN 5 HOUSEHOLDS ARE ADOPTING FWA” Despite the growth in 5G networks, the perceived lack of widespread 5G use-cases remains a concern. Could you share some successful strategies or initiatives Ericsson has observed or implemented globally that might accelerate the development of compelling 5G use-cases in India? Given that 5G technology is still in its early stages, it’s essential to prioritise extending 5G connectivity nationwide. Initial use-cases like Enhanced Mobile Broadband (eMBB) and fixed wireless access (FWA) have already proven their ability to decongest the network and bridge the digital divide. On our part, Ericsson has collaborated with DoT to offer accredited courses on 5G for DoT’s initiative on 100 5G use-case labs. This will help create a 5G-ready workforce in India and enable students to develop use-cases that can address local needs, enhance productivity, and accelerate the country’s digitalisation efforts. Investing in R&D is also critical for unlocking the full potential of 5G. By collaborating with academic institutions, startups, and government agencies, we can drive cutting-edge research in areas such as artificial intelligence, the Internet of Things, and edge computing, laying the foundation for ground-breaking 5G applications. Considering the diverse and price-sensitive nature of the Indian market, what steps do you think need to be taken to make 5G smartphones more accessible to the masses, including those currently using 2G networks? To make 5G smartphones more accessible in India’s diverse and price-sensitive market, collaboration with manufacturers for affordable handset development is key. Incentivising upgrades through trade-in programmes and improving network infrastructure will also drive the transition from 2G to 4G/5G smartphones. As affordable smartphones become more prevalent and network coverage improves, we anticipate a natural shift towards 4G/5G devices among Indian consumers. FWA has been heralded as a potential game-changer for bridging digital divides. Can you elaborate on the impact FWA has had so far in India and its future trajectory in terms of contributing to digital inclusivity? Given the low fibre penetration in India, FWA will play a significant role in providing reliable and high-speed internet connectivity to underserved areas, thus helping bridge the digital divide and improving digital inclusion in these areas. FWA eliminates the need for costly and time-consuming physical infrastructure such as fibre optic cables or copper lines. Instead, it utilises wireless technology to deliver broadband internet access. This makes it easier and more cost-effective to deploy in rural or remote regions where laying traditional cables may not be feasible. According to Ericsson’s FWA Handbook 2024 Insights, from 130 million in 2023, FWA connections worldwide are projected to reach 330 million by 2029, with nearly 85 per cent over 5G. JioFiber and Airtel Xstream Fiber are now being deployed in India, covering almost all the major cities and towns in the country. Recently, Bharti Airtel and Ericsson successfully demonstrated

37 | B W BUSINESSWORLD | 18 May 2024 5G FWA functionality on mmWave. Peak speeds of 4.7 Gbps were achieved during the testing, demonstrating the applicability of mmWave for high network capacity requirements. In India, 3 in 5 Indian households are adopting FWA as a full replacement for previous connectivity, with network satisfaction comparable to fibre, as per a recent Ericsson report. This underscores FWA’s scalability, cost-effectiveness, and simplified deployment, making it a key driver of digital inclusivity in India. From your perspective, what are the most promising 5G use-cases for the Indian consumer market in the near future? How would Ericsson help communications service p r o v i d e r s ( C S Ps ) m o n e t i s e t h e s e use-cases? Beyond the initial use-cases like eMBB and FWA, some of the most promising use-cases include AR/VR shopping, cloud and immersive gaming, 360-degree live streaming, 3D/ AR Books, and digital libraries amongst others. Network slicing will play a pivotal role in enabling these use-cases. Our solutions like Ericsson’s dynamic network slicing solution can empower CSPs to seamlessly integrate service orchestration and management of network slices while our digital operations support systems (OSS)/ business support systems (BSS) solutions can help them to streamline operations, reduce time to revenue, and capitalise on new 5G opportunities. Ericsson recently reported a decline in network sales. What factors contributed to this slump, and what avenues is the company eyeing for its next phase of growth? Given the rapid rollout and expansion of 5G last year, we did expect sales in India to normalise. However, we do expect 5G adoption in India to grow given the strong data demand in the country and the digitalisation initiatives by enterprises. We expect to see use-cases like factory automation, mission-critical applications in security and healthcare etc. gain traction. This would entail telecom infrastructure densification and modernisation, as well as enhancing OSS/BSS systems to support evolving network requirements. [email protected]; @Ashish_BW “Given the low fibre penetration in India, fixed wireless access will play a significant role in providing reliable and highspeed internet connectivity to underserved areas” NITIN BANSAL, MD, India & Head-Networks, Southeast Asia, Oceania and India

38 | B W BUSINESSWORLD | 18 May 2024 T HE UBIQUITOUS, but often inconspicuous, glass bottle that holds a fizzy drink, a cool beverage, a perfume or cosmetic is part of a rather large industry. India’s largest container glass manufacturer Hindustan National Glass & Industries (HNG) that was incorporated in 1946, had an installed capacity to produce 2,825 tonnes per day of glass before it was caught in a debt trap and went into insolvency. In October 2021, the Kolkata bench of the National Company Law Tribunal (NCLT) admitted an application for initiating the Corporate Insolvency Resolution Process (CIRP) for REPORT STONES FOR A GLASS HOUSE HINDUSTAN NATIONAL GLASS Photograph by Kiriak09

39 | B W BUSINESSWORLD | 18 May 2024 to consider bidder AGI Greenpac’s resolution plan for HNG despite the fact that on the date of filing its resolution AGI’s plan lacked a CCI approval, mandatory as per the IBC rules and criteria specified in the RFRP (request for resolution plan) issued by Resolution Professional Juneja. It was RP Juneja who had specified to the bidding parties that a CCI approval would be necessary before their resolution plan was put up for voting to the CoC and the deal was approved by them. But when AGI’s plan was put up for voting by the RP to COC, it had no CCI approval. The rule of pre-approval of the CCI is to ensure that the combination of the target company do not become too big a monopoly that could dent businesses in the sector. Corporate Insolvency Resolution of Hindustan National Glass (HNG), the country’s largest and oldest container glass manufacturer, is amongst the most controversial debt resolutions in India. Three former SC judges have highlighted glaring and deliberate lapses that show a sheer abuse of India’s Bankruptcy Code. A special report by Palak Shah HNG. Ironically, four years down the line and much litigation and insolvency regulatory processes later, no corporate knight in shining armour has been able to rescue the debt-ridden company. The HNG resolution has turned out to be among the longest stretching corporate insolvency processes in India and at least three former judges of the Supreme Court of India (SC) have highlighted malpractices of the Resolution Professional (RP) Girish Juneja, along with shortcomings of the Competition Commission of India (CCI). What is the Controversy About? In September 2023, the Kolkata bench of the NCLT decided

40 | B W BUSINESSWORLD | 18 May 2024 JUSTICE N. V. RAMANA “The actions of the RP have given an undue advantage to a bidder. In fact, considering there were only two bidders and since one already had (CCI) approval under green channel under the date of submission of its final resolution plan, the decision taken by the RP was categorically only in favour of AGI being the only bidder who did not have a CCI approval” a former chief justice of the Supreme Court, the RP’s actions may have given an undue advantage to the party AGI Greenpac. Ramana has said that AGI’s resolution plan would not have been eligible for voting in the first place since on the date of submission of the plan as well as voting, AGI did not have any Thus, HNG’s insolvency resolution, which could potentially fetch more than Rs 2,000 crore, ran into controversy after the CoC selected a large bidder that lacked an unconditional approval from the CCI. This also put the role of RP Juneja under the scanner since he put up AGI’s plan for voting to the CoC. According to Justice N. V. Ramana, REPORT HINDUSTAN NATIONAL GLASS TIME LINE: ABUSE OF THE JAN 2020 DBS BANK INITIATES INSOLVENCY PROCEEDINGS AGAINST HNG BEFORE NCLT KOLKATA. INSOLVENCY ADMITTED IN OCT. 2021 JAN 28, 2022 The Committee of Creditors (COC) appoints Girish Juneja as the Resolution Professional (RP) MARCH 25, 2022 Juneja issues Expression of Interest (EoI) calling for bids from interested parties APRIL 24, 2022: 14 parties submit EoI to Juneja THE GAME BEGINS May 24, 2022 Juneja states in the Information Memorandum that interested parties obtain prior approval from Competition Commission of India (CCI) ahead of CoC’s final nod to avoid anti-competitive and monopolistic situation JULY 25, 2022 Out of 14 bidders only AGI Greenpac, International Sugar Corporation (INSCO) and Nirma Chemical remain in the race AUGUST 25, 2022 RP Juneja says the CCI approval that was mandatory before submitting the resolution plan, can now be complied post COC approval of the bidder’s plan. This move clearly favours AGI Greenpac since it lacked CCI approval September 9, 2022 Nirma withdraws its bid leaving only AGI and INSCO in the race. Only INSCO has CCI approval. September 21, 2022 NCLT bench Kolkata directs all compliances under RFRP to be met before COC approval of bidder’s plan. A setback for Juneja September 27, 2022 To surpass the NCLT Direction, AGI files wrong application Form-I (Green channel) before CCI despite being 2nd largest player application pending before the CCI. “Yet, the RP has reposed utmost confidence in the resolution plan of AGI. There is merit in the arguments that actions of RP was to give special preference to one bidder and the same ought to be examined by the NCLT under regulation 36 of CIRP and prevalent precedents,” Ramana said. Putting RP, CoC in the Dock An appeal in the matter is now pending before a Supreme Court bench headed by Chief Justice D. Y. Chandrachud. The arguments hinge on the fact that AGI got CCI approval after the CoC’s approval, which was against the rule. Then too, AGI had only a conditional approval from the CCI, which was based on a condition that it would divest a large plant of the Photograph courtesy: PIB

41 | B W BUSINESSWORLD | 18 May 2024 Form H only allows for contingencies regarding “material adverse event” but not conditionalities. Reportedly, AGI Greepac’s application under Form 1 to the CCI was rejected on 21 October, 2022, leading them to file the application again. In the opinion of Justice A. K. Sikri, a former SC judge, a conditional resolution plan cannot be said to be in compliance with regulations of CIRP. Justice Sikri gave his opinion in August 2023 to the Nala Sangam Employees Union of HNG. Now HNG employees blame the CoC and RP Juneja for the long delay in the insolvency resolution. The wrong choice of the applicant seeking to take over the company, they point out, was the genesis of the controversies. A letter from the union states that the CoC waited for nearly six months for an applicant to win an approval from the CCI, which only gave a nod on condition that HNG’s Rishikesh plant be sold off. Experts point out though, that the CoC and the RP were free to choose an applicant for the deal. The HNG workers’ unions have submitted various complaints to the chief of the Insolvency and Bankruptcy Board of India, the Comptroller and Auditor General, the Union finance ministry, SEBI and other regulatory and investigative agencies raising concerns over the role of the RP and the controversial process being followed in inviting a bid for the country’s oldest glass manufacturer. The matter is now before the Supreme Court. The Nala Sangam, Puducherry employees’ union has been living in fear of a giant ageing furnace. A delay in the corporate insolvency resolution process could impact the safety of thousands of workers, according to the union. Despite appeals by the employees’ unions in 2022 to expedite the process of findtarget company after acquisition to fit India’s monopoly laws. Former Judges have opined that such conditional approvals cannot be approved by the CoC and NCLT in an insolvency deal. As per a judgement of Justice Chandrachud and Justice M.R. Shah in Ebix Singapore Private Limited and Ors. v. Committee of Creditors of Educomp Solutions Limited, the SC had observed that permitting introduction of conditionalities regarding the approval of the resolution plan by the NCLT would introduce an additional tier of negotiations, which is not permitted under the scheme of the Code. But the Form H, which is a compliance certificate that the RP submits to the adjudicating authority on behalf of the resolution applicant, reveals that the final plan with regard to HNG was based on conditionalities. As per the SC’s previous judgement BANKRUPTCY CODE in the container glass industry. Knowing fully well that CCI may not approve combination of HNGIL-AGI since it will create adverse impact on the competition in India. INSCO being a foreign entity got the Green Channel Approval. October 22, 2022 CCI REJECTS AGI’S PLEA THROUGH FORM 1 OCTOBER 28, 2022 Despite AGI not getting CCI approval, Juneja lets AGI put its plan for voting to COC, which was contrary to IBC norms and RFRP terms. November 3, 2022 AGI files for CCI approval again under Form 2 in complete breach of RFRP, 5 days after its resolution plan was approved by CoC. November 5, 2022 RP files Compliance Certificate (Form-H) before the Adjudicating Authority, making several wrong statements based on false undertaking from AGI February 2023 CCI proceeds only on basis of information provided by AGI, which was concocted and misleading. AGI offers voluntary modification of its plan before CCI, offering to divest the Rishikesh Plant of HNG. UP Glass syndicate files a complaint against AGI before CCI, stating that combination of AGI and HNGIL will cause adverse impact on the competition within the glass industry, if AGI acquires HNG March 15, 2023 A day after AGI filed its voluntary modification, CCI approves the combination solely based on data and information provided by AGI, contradicting the data provided in information memorandum (IM). CCI does not conduct independent investigation to verify AGI’s claims. Data submitted by AGI to CCI does not match with data published in the IM by the RP. CCI did not pay heed to the mismatch in data

42 | B W BUSINESSWORLD | 18 May 2024 age) in particular. It proposed modifications that involved divestment of the Rishikesh plant of HNG by AGI, to reduce the impact on the competition. Thus, the CCI approval for AGI was based solely on this modification. “Modifications were only submitted (by AGI) on March 10 and 14 and CCI order was passed on March 15. Thus it is clear that the CCI order is completely based on the submission of AGI and it has not had a chance to verify and examine the submissions. The submission of AGI, if proved to be false, would render the basis of the CCI order as wrong and liable to be set aside,” Ramana noted. The AGI’s plan was also not disclosed to the RP. Justice Ramana noted that “A resolution plan discussed and approved on the basis of such non-disclosure should be set aside and sent back to the CoC as being violative of various sections.” He said, “There cannot be a conditional approval of a resolution plan and the plan cannot be approved subject to receiving permissions from CCI.” A Pandora’s Box – A Quid Pro Quo Deal Between AGI & Edelweiss Even as the controversy regarding AGI’s ing a suitor for HNG, the CoC waited for nearly six months for an applicant to receive a nod from the CCI, instead of choosing an applicant from among those who already had received such approvals, the union says. In its letter to the CoC, the employees’ union had said, “The repercussions of this decision (by the CoC) will lead to further long delays in the resolution process, which will have unintended consequences that will prove serious and detrimental for the safety of assets, personals and job security, of the employees,”. The harried employees’ union sought the legal opinion of two former Supreme Court judges on the decision taken by the CoC. It sought the opinion of former Supreme Court judge, Justice N. V. Ramana in June 2023 and then of Justice A. K. Sikri in August 2023. Conditional CCI Approval The CCI order dated March 15, 2023 said that the CCI was of the prima facie opinion that the combination of HNG and AGI was likely to result in an ‘appreciable adverse effect on competition’ in the overall container glass packaging in general and in the sub-segments of alco-beverage and F&B (food and beverbid was raging in the courts, BW Businessworld learnt of a quid pro quo deal between AGI Greenpac and Mumbaibased Edelweiss, a financial services group. It has come to light that the Edelweiss Group was a funding partner of AGI. The same Edelweiss Group was also on the other side of the deal and cast its vote in favour of AGI’s bid to acquire HNG, making it a case of grave conflict of interest. The sensational revelations came to light as the NCLT proceedings revealed a letter (in possession of BW Businessworld) from Edelweiss Alternative Asset Advisors to AGI promising Rs 1100 crores in funding to acquire HNG. The plot thickens as the legal proceedings also show that Edelweiss was a key member of the CoC, appointed RP Juneja and is mandated to approve or reject the bids. Thus Edelweiss could swing JUSTICE A. K. SIKRI “On the dates of submission of Resolution Plan as well as voting, AGI did not even have an application before CCI pending, yet the RP has reposed utmost confidence in AGI. Perusal of the above events shows that action of the RP was to give special preference to one bidder as opposed to the remaining bidder and the same ought to be examined by the NCLT Kolkata under Regulation 36 of the CIRP; Regulations and prevalent judicial precedents.” Photograph by Subhabrata Das Photograph courtesy: NALSA REPORT HINDUSTAN NATIONAL GLASS

43 | B W BUSINESSWORLD | 18 May 2024 letter of funding clearly reveals the plot. AGI Stock Exchange Disclosures Justice Vikramajit Sen, another former Supreme Court judge has opined that market regulator SEBI should probe and take action against both AGI and HNG for their failure to disclose material information to their shareholders that the CCI approval was conditional. The share price of AGI witnessed 236 per cent gains from a low of Rs 334 to highs of Rs 1089 on the basis of its half -baked disclosures. “Notably, the letter dated 16.03.2023 sent by AGI Greenpac informing the Stock Exchanges of the CCI approval, conspicuously fails to mention that the approval granted was conditional upon AGI executing the proposed modification, that is the voluntary divestiture of the Rishikesh Plant of HNG. AGI vide its letter dated 16.03.2023 informed the Stock Exchanges that the CCI Order “is awaited”, even though AGI was aware of its gravamen. The Order of the CCI was eventually uploaded on 19.04.2023 but it was not shared by AGI,” Justice Sen says. (Read the full exposé on the HNG debt resolution process in the series of special reports published on businessworld.in) [email protected] the insolvency deal in favour of AGI and also enjoy the fruits of its funding to the bidder – a quid pro quo. One of the key clauses in the letter of funding issued by Edelweiss to AGI says that funding would be provided only if AGI’s plan was approved by the CoC. But there was no chance of rejection of AGI’s bid since on the other side Edelweiss also managed to break into the CoC club with a 24 per cent voting right, after it acquired HNG’s debt from L&T, HSBC, HDFC and Axis in a structured arrangement, the records show. Among the only two bidders for HNG in the debt recovery tribunal, AGI’s bid won 98 per cent of votes from the CoC while the other bidder secured 88 per cent vote. In this, while all the other CoC members voted similarly for the two bidders, a vote from Edelweiss could have swung the deal in favour of AGI – the Justice Vikramajit Sen, former SC judge, has opined that SEBI should probe and take action against both AGI and HNG for their failure to disclose material information on CCI’s conditional approval for the deal

44 | B W BUSINESSWORLD | 18 May 2024 HE TRAJECTORY of India’s demographic landscape is rapidly changing, with profound implications for our society and economy. The recent study by Lancet on global fertility rates has sounded the alarm, highlighting the concerning decline in India’s total fertility rate (TFR) over the past century. From 6.18 children per woman in 1950 to a projected 1.29 children per woman by 2050, the numbers paint a picture of a nation on the cusp of a major demographic transition. Notably, India has already fallen below the replacement level of fertility required for a population to sustain itself, with its TFR reaching 1.91 children per woman in 2021 – below the necessary replacement fertility level of 2.1. The rise of female literacy and women’s participation in the workforce coupled with changes in the inter-generational wealth has led to the slowing down of the Total Fertility Rate (TFR) particularly in Urban areas with the average age of first pregnancy shifting from the mid-20s to the mid to late 30s. As a case in point, the increasing demand for In Vitro Fertilisation (IVF) treatments indicates the growing prevalence of infertility issues. Projections indicate that the IVF market could surge to Rs 30,000 crore by 2030, a significant rise from Rs 6,400 crore in 2020. The varied Total Fertility Rate (TFR) across Indian states poses a twist to this challenge for the country’s planners. There are now only five states that have a TFR above the replacement level of fertility of 2.1 children per woman: Bihar (2.98), Meghalaya (2.91), Uttar Pradesh (2.35), Jharkhand (2.26), and Manipur (2.17). Evidence suggests that certain regions in South and West India are ageing at a faster rate compared to those in the North. Demographic Shift Policymakers must grasp the complexity of this demographic shift and prepare accordingly. With more households increasingly turning nuclear, the issues of gender disparities in household responsibilities to enable women to balance careers with motherhood effectively need prime focus. Given India’s low female workforce participation, the ability to bring women in the formal economy is critical to address the sustainability of Indian economic development. It cannot happen just as “men and machines”, for it needs women in the overall nation building narrative. Greater male engagement in household activities is crucial for creating an environment where women can pursue their professional ambitions without sacrificing family life and also underscore the need for targeted interventions to support families prime amongst which is childcare and taking care of the elderly. Drawing from the historical context of developed nations, it’s evident that once fertility rates dip below the replacement level, reversing the trend becomes immensely challenging. With India’s TFR currently hovering at 1.9, just below replacement, urgent policy development is required. According to UNPF estimates, the share of India’s working-age population will peak in the late 2030s or early 2040s. Policymakers must seize this critical window to maximise India’s demographic dividend, to proactively address the challenges posed by an ageing population and declining fertility rates. In the coming three decades, India’s demographic makeup will additionally undergo a significant shift, transitioning from a demographic dividend to a silver economy. In the future, T Why India needs to work on the Young & the Aged? Column By Dakshita Das & Srinath Sridharan

45 | B W BUSINESSWORLD | 18 May 2024 prepare for them now. Despite the declining fertility rates, the United Nations anticipates India’s population to surpass 1.6 billion by 2050. While a large population poses its own set of challenges, policymakers have long recognised the economic advantages of India’s youthful demographic, commonly referred to as the demographic dividend. The Middle Income Trap However, there exists an urgent need to capitalise on this advantage to avoid falling into the middle-income trap. The consequences of inaction are dire. A shrinking workforce, coupled with an ageing population, threatens to strain our economy and social fabric. Already, signs of demographic shifts are evident, with certain regions greying faster than others. Policymakers must anticipate these changes and develop comprehensive strategies to mitigate their impact. Key among these interventions are economic policies that stimulate growth and job creation. As India’s demographic dividend transitions into a silver economy over the next three decades, it is essential that we invest in sectors that will provide opportunities for our youth and support a thriving workforce. Moreover, geriatric healthcare and support systems, social security, pension reforms are essential to ensure the well-being of our ageing population and alleviate the burden on future generations. Each of these policies are long-gestation for their development and positive impact. That is why the polity and policy makers must act decisively, now, to harness India’s demographic potential and pave the way for a stronger, more resilient society. The time to act is now – for the future of India depends on the decisions we make today. As India’s demographic dividend transitions into a silver economy over the next three decades, it is essential that we invest in sectors that will provide opportunities for our youth and support a thriving workforce. Moreover, geriatric healthcare and support systems, social security, pension reforms are essential India is set to be a country with a large number of geriatrics. A latest analysis by US non-profit Population Reference Bureau’s projects that between now and 2050, India’s population aged 65 and older will grow by 14.4 crore. Currently, almost 68 per cent of Indians fall within the age group of 15-64 years. With the peaking of population growth by 2050, a lot many more of us will be in the bracket of Senior Citizens and above. This projection comes with several challenges prime amongst which is geriatric care and availability of adequate healthcare facilities. It is also a forecast that with increasing urban migration, many more Indians will be residing in metros adding to this challenge and that with non-communicable diseases, such as diabetes, cardiovascular diseases, and cancer rising, there will be additional strain on healthcare and family support both. Yet again we see varying ageing population across Indian states: By 2036, one in five people in India’s southern states will be elderly. These have implications on the economic contribution of those who age, and the duty of the state to care for its aged, and the non-productive labour population. While the challenges of a growing ageing population may seem distant, it is crucial for the nation to proactively Dakshita Das is a policy expert & former civil servant & Srinath Sridharan is a policy researcher & corporate advisor Photographs by Indiapicturebudget

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48 | B W BUSINESSWORLD | 18 May 2024 “WE ENVISAGE A 10-FOLD INCREASE IN OUR RENEWABLE ENERGY PORTFOLIO TO Rs 3 LAKH CR” How would you describe REC’s financial performance in FY24? FY24 was a fabulous year for REC. The total return to shareholders has been tremendous. We started the financial year with a share price of about Rs 110. We ended it above Rs 450 per share, almost more than 350 per cent return to the shareholders. We achieved the highest-ever loan sanctions worth Rs 3,56,000 crore compared to Rs 2,68,000 crore. The disbursement too was phenomenally high to the tune of Rs 1,61,000 crore, compared to last year’s Rs 97,000 crore. With this growth in our loan book, we are committed to the fact that our assets under management will double in the next five to six years. By 2030, we intend to take our loan book to about Rs 10 lakh crore, and 30 per cent will come from the renewable energy portfolio. We envisage a 10-fold increase in our renewable energy portfolio to about Rs 3 lakh crore from the current Rs 35,000 crore. Similarly, we are also seeing that there will be a significant increase in our non-power infrastructure loan book which is likely to contribute around Rs. 1.5 – 2 lakh crore by the year 2030. Talk us through the portfolio division as of now for the loan book. How has the progress been on the infrastructure sector? We were a bit cautious about the non-power infrastructure logistics sector. Initially, we sanctioned only those projects that were supported by state government guarantees. We are gaining confidence and have brought sector experts specialising in the infrastructure and logistics sector. With the strengthening of the workforce, we are hoping that we will be able to finance certain private-sector projects also in the infrastructure logistics space. However, we will ensure that we will not finance any infrastructure projects until successive revenue and cash flows are assured. The revenue cash flow should be sufficient to meet our repayment obligation. We are targeting good assets. We are not in a hurry to finance the infrastructure logistics sector. You have had no new NPAs lately. How is such high focus on asset quality being achieved. And in turn due to it is their any affect on the margins? Yes, we are willing to take a bit of a hit on the margin, but we do not want any asset to become NPA. In the last nine quarters, we have not had a single NPA added. We hope that by December 2025, we will become a net zero NPA company because assets under resolution are heading towards liquidation. And on the cost of funding, how would you describe the current macroeconomic environment? Talk us through the borrowing IN CONVERSATION E nding FY24 with record loan sanction and disbursals, REC CMD VIVEK KUMAR DEWANGAN caught up with Arjun Yadav of BW Businessworld to delineate the financing firm’s strides in diversifying its loan book, the razor sharp focus on asset quality, the plan for the solar rooftop scheme and more. Edited Excerpts:

49 | B W BUSINESSWORLD | 18 May 2024 But going forward, since we are targeting to increase our renewable energy portfolio to about 30 per cent of our loan book by the year 2030, and most of these projects are coming from the private sector, the share of the private sector is bound to increase automatically. From the present 10 per cent, it will rise to about 30 per cent by 2030. What exactly will be your role as the overall programme implementer of the solar rooftop scheme? Our job is to coordinate with various stakeholders, including rooftop owners, distribution companies, vendors, banks, and financial institutions that will be giving loans. The Ministry of New and Renewable Energy has indicated to us that they are targeting the installation of about one crore rooftop solar in the next two years. So, our job is quite complex because we need to coordinate with all such entities. A grievance redressal mechanism has also been put in place. After the model code of conduct is lifted, we will also plan an outreach program through a comprehensive communication strategy. Moreover, the Ministry of Power has amended some rules. The technical feasibility report has now been done away with for projects below 10 kilowatt capacity. Subsequent to these amendments, the distribution companies and the State Electricity Regulatory Commissions are also making suitable provisions to facilitate doing away with the technical feasibility report, which will help expedite installations. Our CPSEs will also play an important role in being trusted vendors in ensuring the pricing and quality of the solar modules being installed on rooftops. [email protected] “We hope that by December 2025, we will become a net zero NPA firm because assets under resolution will be heading towards liquidation” plan as well. We had borrowed about Rs 1.5 lakh crore last financial year. Our board has approved a borrowing limit of up to Rs 1.6 lakh crore in the current financial year. However, as the year progresses, we can also increase the borrowing limit if the need arises. Our conscious effort is to bring down the cost of financing. We have brought down our financing cost to about 7.16 per cent. Since we are targeting good quality assets, our margins will be able to hold on to our net interest margin at more than 3.55 per cent. Your loan book still heavily consists of the state sector? Is it strategic or are there efforts being made to lend to the private sector as well with same trajectory? Yes, right now, around 90 per cent of our loans are towards the state sector. We are a bit cautious about the private sector because most of our NPAs from old coal-based thermal power plants were in the private sector. Photograph by Naval Kishor

50 | B W BUSINESSWORLD | 18 May 2024 R AHUL SINGH, Co-founder and VP Engineering, ideaForge, one of the leading manufacturers of Unmanned Aerial Vehicles, talks about the growing importance of drones across sectors, its benefits, future challenges and much more in a conversation with ASHISH SINHA of BW Businessworld. Excerpts: IN CONVERSATION