11 MARCH 2023 BW BUSINESSWORLD

Rs 150 www.businessworld.in | SUBSCRIBER’S COPY NOT FOR RESALE | RNI NO. 39847/81 | 11 MARCH 2023 “Andhra Pradesh is the fastest-growing state in the country with 11.43 per cent GSDP. On the Ease of Doing Business Rankings, the state has been ranked 1st for the past three years” Y. S. JAGAN MOHAN REDDY, CHIEF MINISTER, ANDHRA PRADESH DISCOVER ANDHRA PRADESH WHERE ABUNDANCE MEETS PROSPERITY

2 | BW BUSINESSWORLD | 11 March 2023 ANDHRA PRADESH: THE STATE THAT OFFERS EVERYTHING TO GROW YOUR BUSINESS GLOBALLY Andhra Pradesh is proud to embark on a new journey of sustainable development through inclusive growth, led by strong, decentralized citizen centric governance. Abounding with advantages in every aspect geographical, agricultural, industrial, infrastructural, Andhra Pradesh is the state where industry flourishes in a host of thrust sectors facilitated by a growth-oriented and supportive government. The state is ready to host the Andhra Pradesh Global Investors Summit 2023 in March, spreading its arms wide open for global collaborations, partnerships and investments in the state. With 12 sectors in the spotlight, the APGIS 2023 is the best platform for any investor looking to expand its business globally. A NDHRA PRADESH offers Conducive Business Environment. The state stood FIRST in the country under ‘Ease of Doing Business’. It has achieved the highest feedback (97.89 per cent) amongst all the states by the industries surveyed under BRAP 2022- 21. The state has re-engineered 5 Acts under the framework of Labour Laws to provide spot approval on services. These have reduced the average time to start a business to 21 days. The state has also repealed 26 obsolete /redundant acts administered by the Revenue and Water Resources Departments. The AP government has also reduced service delivery time by half for 18 services under the Municipal Administration and Urban Development Department for the businesses. The state also offers a Robust Industrial Infrastructure for the investors. The State is renowned for its structured approach to the development of Industrial Parks. AP has 534 Industrial Estates equipped with best-in-class infrastructure such as power, water, ETP, STP, common facilities, plug-and-play facilities, etc. The State has an abundant land bank (50,000 + acres) for industrial development, with ‘Industrial Zoning’ as the key focus area to provide a ‘riskfree’ investment-friendly environment. YSR Jagananna Mega Industrial Hub being developed in Kopparthy, YSR district with a vast land bank of 6,900+ acres with pre-cleared approvals, competitive land cost, ready-built Plug & Play Sheds, robust state-of-theart infrastructure including trunk infrastructure, CEPT, power, bulk water supply and more. AP is the only state that has 3 National Industrial Corridors, across 46,555 acres of land bank. These are Visakhapatnam – Chennai

11 March 2023 | BW BUSINESSWORLD | 3 Sri YS Jagan Mohan Reddy Chief Minister of Andhra Pradesh “Andhra Pradesh has gained unique attention throughout the world with the second-largest Telugu Indian diaspora overseas and also with amiable and entrepreneurial spirit driving businesses. Government of Andhra Pradesh, with the goal of preparing for the future, is hosting the Andhra Pradesh Global Investors Summit 2023 on 3 and 4 March, 2023, in the enterprising city of Visakhapatnam, which will serve as a platform to showcase the state’s strengths, unlimited opportunities, knowledge-sharing and create strong collaborations & business partnerships with global companies for promoting resilient, inclusive, and sustainable industrial development. I cordially invite you all to attend the forthcoming Summit and work with us in Andhra Pradesh to see your business flourish. I look forward to hosting you in Visakhapatnam.” “Andhra Pradesh is strategically situated on India’s east coast and has developed in an industrial powerhouse owing to its robust manufacturing ecosystem, port-led infrastructure, and investor friendly environment. Additionally, availability of industrial-ready abundant land parcels, three industrial corridors that connect to major consumption hubs, multitude of sources providing sustainable water supply, and a strong network of uninterrupted quality power, position the State at the forefront of India’s economic growth.” Industrial Corridor (VCIC), Chennai – Bengaluru Industrial Corridor (CBIC), and Hyderabad - Bangalore Industrial Corridor for accelerated industrial development across the state. Andhra Pradesh is also the only State in India with four dedicated Electronic Manufacturing Clusters (EMCs) with 1.4 million SFT of built-up area with Plug and Play facilities. It has a New Bulk Drug Park coming up in warehousing and cold chain facilities. The state has focused on Portled industrial development to spur industrial growth. AP has adopted an integrated approach to improving performance on logistics with the help of six drivers, namely Ports, Roads, Airports, Waterways, Railways and Dedicated Corridors for logistics. As per the LEADS 2022 report, Andhra Pradesh is the “Top achiever in Logistics Ease”. Andhra Pradesh is developing fishing harbours in 9 strategic locations with integrated infrastructure facilities like Cold Storage, Fish Processing, Chill Centres, Boat handling, and Repair centres. The State is bestowed with 6 airports, which includes 2 new airports under development, and 6 seaports, including the 4 new seaports under development. It has an excellent network of rail Kakinada, in an extent of 1,000 acres with an investment of Rs 1,600 Crores or USD 200 Million. The state has also announced a Bulk Drug Parks Policy for units coming up in Bulk Drug Park. Andhra Pradesh is renowned as Gateway to the east of India, with its numerous ports seamlessly connected with multi-modal transport to major consumption and export hubs of South and East India, along with excellent Sri Gudivada Amarnath Minister for Industries, Infrastructure, Investment & Commerce, Information Technology and Handlooms & Textiles, Government of Andhra Pradesh

4 | BW BUSINESSWORLD | 11 March 2023 (3,900 km) and road (7,303 km of National Highways and 14,714 km of state highways), crisscrossing the State, and connecting its ports to major consumption and export hubs in India. Strong export capabilities are being augmented with 2 Multimodal Logistics Parks in Anantapur and Visakhapatnam, 4 Inland Container Depots (ICDs), and 16 Container Freight Stations (CFSs) facilitating container cargo movement between manufacturing centres and the ports. The strategic location of the state too makes it a great option for the investors. Andhra Pradesh, with its second longest coastline in the country, is considered the Eastern gateway of India. Strategically located in close proximity to global manufacturing hubs such as China, Taiwan, Japan, South Korea, and South-East Asia, AP has two freight specific corridors being developed with Vijayawada as the central node (East Coast Corridor from Kharagpur to Vijayawada and North-South Sub– Corridor from Vijayawada to Itarsi). The state also offers quality power and water availability. Andhra Pradesh is a power surplus state with 25 GW installed power generation capacity with over 35% contribution from renewables and the least power transmission losses. It has 300 Days of sunlight every year with solar insolation of more than 5 kWh/m²/day over large non-agricultural land, enabling the setting up of large solar PV power plants. Andhra Pradesh is one of the few water-abundant states in India with the allotment of at least 10% available capacity to the industries. The state is in the process of developing an Industrial Water Supply Grid throughout the state with uniformity in pricing. Special emphasis is being given to all the identified nodes of the three Industrial Corridors in the state for developing an Industrial Water Supply Network. The projects for YSR Jagananna Mega Industrial Hub and Orvakal Industrial Park are being developed with an estimated cost of INR 450 Crores (USD 55 Million). Above everything, Andhra Pradesh offers an Industry-Ready Skilled Workforce. The state has 70% of its total population in the working age group. It has abundant availability of skilled youth (50,000+ on average). In order to hone the skills of youth, Andhra Pradesh is setting up a Skill University as a hub with 26 Skill Colleges (One in each constituency), 177 Skill Hubs, and 55 Skill centres in collaboration with various industries, sector exports, and relevant stakeholders. The network of skill centres imparts the youth with industry-ready skills apart from promoting On-The-Job Training (OTJ) and apprenticeships to meet the demand of the local industry. The State has collaborated with global firms such as Google, Amazon, Udacity, Coursera, HP, etc. for shortterm and relevant skill development courses and has partnered with Stanford University, University of Massachusetts, NE University for International Programs. Andhra Pradesh has ample raw material availability. The State is a treasure house for more than 48 minerals like Bauxite, Manganese, Graphite, Lead- zinc, Heavy mineral beach sands, Iron ore, Limestone, high-quality Quartz, Quartzite & Silica Sand etc. It is number #1 in Barytes production encompassing more than 92 per cent of Barytes reserves in the country. It has been ranked 1st in production of Oil palm, Papaya, Lime, Coconut, Cocoa, Tomato, and Chillies in FY 2021-22. Andhra Pradesh is famously known as “The Food Bowl of India” and “The Fruit Bowl of South India” Number 1 in terms of the total value of trade done on the eNational Agricultural Market (eNAM). The State is also the largest producer of cotton, the 2nd largest producer of raw silk, and stands 4th in jute production in India. The state is also home to large hectares of Agroforestry plantations that act as raw material for the Paper and Plywood industry. When it comes to doing business, Andhra Pradesh is one of the most inexpensive states. It has been reducing upfront costs through Plug and Play Facilities, Ready-Built Facilities (RBFs) with flexible payment options, lowering capital costs through Leasecum-buy model for industrial land allotment. The state has a specific pricing policy for Kopparthy YSR Electronics Manufacturing Cluster with power supply at Rs 4.50 per unit. It has been reducing cost with the development of IT Concept Cities to enable speed of execution, offering plug & play office space, the fastest approvals, access to skilled manpower, walk to work. n

www.businessworld.in RNI NO. 39847/81 | 11 MARCH 2023 AMAN GUPTA&SAMEERMEHTA,FOUNDERS OF boAt, THE HOMEGROWN D2C ELECTRONICS & WEARABLE BRAND, ON THE RECENT RS 500 CRORE FUND BOOST & CONNECT-TO-CONSUMER MAGIC THE DIRECT TO CONSUMER ISSUE RIDING THE CREST THE $55 BILLION INDIAN D2C MARKET CELEB TURNED ENTREPRENEUR ALIA BHATT ON WHY PURPOSE IS AT THE CORE OF ED-A-MAMMA KANWALJIT SINGH MANAGING PARTNER & FOUNDER, FIRESIDE VENTURES DARPAN SANGHVI GROUP FOUNDER & CEO, THE GOOD GLAMM GROUP EXCLUSIVE INTERVIEWS:

www.businessworld.in | RNI NO. 39847/81 | 11 MARCH 2023 THE DIRECT TO CONSUMER ISSUE The ‘Good’ Strategy CONTENT, CREATOR, COMMERCE, CONNECT – THE GOOD GLAMM GROUP’S FOUNDER DARPAN SANGHVI HAS A SIMPLE PLAN, AS HE SETS HIS EYES ON PROFITABILITY & INTERNATIONAL MARKETS THE $55 BN INDIAN D2C MARKET CELEB TURNED ENTREPRENEUR ALIA BHATT ON WHY PURPOSE IS AT THE CORE OF ED-A-MAMMA + Photograph by Suresh Gola

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10 | BW BUSINESSWORLD | 11 March 2023 Dear reader, EVERY CRISIS is also an opportunity for new learnings, for new affirmations, for new beginnings. The Hindenberg Research report on the Adani Group erupted into one such crisis with ripple effects in the spheres of business and finance. While the world awaits the denouement of this saga, we bring to you well-researched reports and opinion on what could have gone wrong in this otherwise mesmerizing story of one of the fastest growing business empires of the day. A special package in this issue brings to you voices from different domains of the financial sector that dissect the imbroglio and prescribe lessons for the future. The growing concerns in the technology sector are evidence enough that even if a new equilibrium is higher than its predecessor, the act of balancing requires a slump. Even so, some sectors of the Indian economy have been braving the odds and ploughing on through many travails. In this edition of BW Businessworld we focus on the steadily evolving direct-to-consumer (D2C) market that impacts our daily lives, but seldom grabs headlines. A Modor Intelligence report assesses the total addressable D2C market in India at $33.1 billion in 2020 and predicts that it will grow to $100 billion in 2025. Many D2C players have gone beyond online to mark their presence offline too, and this is shaping the future of ecommerce as a connect-to-consumer proposition. It opens up new vistas in business and commerce, entrepreneurship and of course, employment opportunities for thousands. The D2C sector will continue to attract attention and investments and it must be celebrated on all counts, as must the initiatives of the young entrepreneurs who have been able to carve a niche for themselves in it. Among them are boAT Co-founders, Aman Gupta and Sameer Mehta and Co-founder of the Good Glamm Group, Darpan Sanghvi. Our cover features in this issue are the stories of these young and successful enterprises. Do also read an interesting interview with ace investor Kanwaljit Singh of Fireside Ventures. He says that the inherent opportunity for new-age disruptive brands is still nascent. I agree with his thoughts completely and also with his observation that increasingly consumers are evaluating brands on the scale of how they impact the planet and society. One such entrepreneur featured in this issue is actor Alia Bhatt who prioritised sustainability for her children’s clothing brand, Ed-a-Mamma, and the market showed that there was a place for it. In 10 months, the company registered 10X growth to become a Rs 150 crore brand. Of course, we also bring to you all our regular features and columns. Happy reading! ANNURAG BATRA [email protected] DIRECT-TO-CONSUMER DIRECT-TO-READER EDITOR-IN-CHIEF’S NOTE

12 | B W BUSINESSWORLD | 11 March 2023 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 Infinity Advertising Services Private 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 2,899 TWO YEARS - Rs 5,599 THREE YEARS - Rs 8,199 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 EXECUTIVE EDITOR: Suman K. Jha EDITORIAL TEAM Sr. Associate Editors: Ashish Sinha, Jyotsna Sharma, Meha Mathur Assistant Editor:Tarannum Manjul Sr. Correspondents: Rohit Chintapali, Deep Majumdar Correspondents: Abhishek Sharma, Arjun Yadav Trainee Journalists: Sneha Patro 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 Assistant Images Editor: Sanjay Jakhmola PHOTO TEAM Sr. Photo Researcher: Kamal Kumar BW ONLINE: Assistant Editor: Poonam Singh VIDEO EDITORIAL TEAM Video Team: Anurag Giri, Pappu Kumar Singh, Sunny Kumar Paswan Sr. Cameraperson: Ratneshwar Kumar Singh BW APPLAUSE & EVERYTHING EXPERIENTIAL: Ruhail Amin BW AUTO WORLD: Utkarsh Agarwal BW ESG & BW CFO WORLD: Urvi Shrivastav BW CIO WORLD: Ratnadeep Chaudhary BW DISRUPT: Resham Suhail BW EDUCATION: Vasudha Mukherjee, Upasana BW HEALTHCARE WORLD: Smridhi Sharma, Shivam Tyagi BW HOTELIER: Editor: Saurabh Tankha Editorial Lead: Bulbul Dhawan Operations Controller: Ajith Kumar LR BW LEGAL WORLD: Editorial Lead: Krishnendra Joshi BW MARKETING WORLD: Soumya Sehgal BW PEOPLE: Sugandh Bahl BW WELLBEING: Kavi Bhandari VC WORLD: Anisha Aditya GROUP EDITORIAL HEAD: Vishal Thapar (BW Defence, BW Securityworld & BW Policeworld) Community Lead: Shilpa Chandel BW POLICE WORLD: Ujjawala Nayudu DIRECTOR: Prasar Sharma GROUP SR. VICE PRESIDENT - STRATEGY, OPERATIONS & MARKETING Tanvie Ahuja ([email protected]) CEO, BW HEALTHCARE WORLD & BW WELLBEING WORLD: Harbinder Narula DIRECTOR, ADVERTISING & REVENUE: Aparna Sengupta DIRECTOR, PROJECTS & COMMUNITIES: Talees Rizvi VICE PRESIDENT: Mohit Chopra VICE PRESIDENT STRATEGIC PROJECTS: Uday Laroia MARKETING & DESIGN TEAM: Prerna Singh Rathore, Kartikay Koomar, Mohd. Salman Ali, Moksha Khimasiya, Shweta Boyal, Alka Rawat, Arti Chhipa, Sunny Anand Asst Manager - Design: Kuldeep Kumar EVENTS TEAM: Rekha Rawat, Tarun Ahuja, Devika Kundu Sengupta, Preksha Jain, Akash Kumar Pandey, Mohd. Arshad Reza, Sneha Sinha, Ashish Kumar, Nandni Sharma, Mahek Surti, Reeti Gupta, Atul Joshi, Mir Salika, Preeti Tandon, Biren Singho, Abhishek Verma, Neeraj Verma, Sushmita Kumari, Prashant Kumar, Mayank Kumar SALES TEAM NORTH: Ravi Khatri, Anjeet Trivedi, Rajeev Chauhan, Amit Bhasin, Somyajit Sengupta, Priyanshi Khandelwal, Sajjad Mohammad WEST: Kiran Dedhia, Nilesh Argekar SOUTH: C S Rajaraman BW COMMUNITIES BUSINESS LEADS Priya Saraf (BW Education), Gareema Ahuja (BW LegalWorld), Chetan Mehra (BW Disrupt) CIRCULATION TEAM General Manager - Circulation, Subscription & Sales: Vinod Kumar ([email protected]) NORTH-EAST: Shiv Singh, Mukhtadir Malik, Kamlesh Prasad WEST: Arvind Patil, Gorakshanath Sanap SOUTH: Sarvothama Nayak K FINANCE TEAM Ankit Kumar, Ishwar Sharma, Shrikant Sharma, Vijay Jangra IT SUPPORT: Brijender Wahal ADMIN SUPPORT: Assistant to Chairman & Editor-in-Chief: Aman Mishra ([email protected]) VOL. 42, ISSUE 10 11 MARCH 2023

Utkarsh Agarwal, +91 98107 29644 [email protected] For Speaking Opportunity: Biren Singho, +91 87430 00885 [email protected] For Nominations: Mahek Surti, +91 98923 05192 [email protected] For More Details: MEET OUR EMINENT JURIES DR. ANNURAG BATRA Chairman & Editor-in-Chief BW Businessworld & Founder, exchange4media HARSHA KADAM Chief Executive Ocer & MD, President - Industrial Business Schaeer India RAGHAVENDRA VAIDYA MD & CEO Daimler Truck Innovation Center India (DTICI) RASHMI URDHWARESHE Director - Pune Knowledge Cluster Foundation and Immediate Past President, SAEINDIA (Society of Automobile Engineers India) VIKAS AGGARWAL Founder & MD IPower Batteries SANJAY GOPALAKRISHNAN Sr. Vice President - Electric Passenger Vehicle Business, BYD India NOOR F WARSIA Group Editorial Director BW Businessworld SOHINDER GILL CEO ‐ Global Business HERO ECO & Director‐General, SMEV SUNJAY J KAPUR Chairman, Sona Comstar President, ACMA Co-Chairman, CII Manufacturing Council SRIRAM SUNDRESAN CEO Firefox Bikes MARCH 2023 UNDER 40 #BWAuto40under40 JYOTI MALHOTRA Managing Director Volvo Auto India JURY CHAIR NEW DELHI NOMINATE NOW Recognising Future Masters of Indian Auto Sector LAST DATE TO NOMINATE: MAR 5, 2023

14 | BW BUSINESSWORLD | 11 March 2023 MAILBOX YOUR COMMENTS TALK BACK LAST WORD V. VAIDYANATHAN www.businessworld.in | RNI NO. 39847/81 | 25 FEBRUARY 2023 INFRA MANTRA UNION BUDGET 2023-24 BANKS ON INFRA EXPANSION, POWERED BY RECORD CAPEX, TO BOOST THE ECONOMY, MANUFACTURING. BUT IS THE DISINVESTMENT DRIVE LOSING STEAM? The Unfolding Adani Saga | Season Of Layoffs SPOTLIGHT ON THE DIGITAL ECONOMY This refers to the editorial (“Surging Towards India@100”, BW, February 25). The author rightly points out that the Union Budget 2023-24 posits a spotlight on the digital economy. It reiterates the fact that technology will continue to play a decisive role in the realisation of India@100. The author states that the development of centres of excellence for AI; setting up of 100 labs on cuttingedge research on 5G along with digital initiatives like the move to set up a National Digital Library are a call for a government-industry-academia linkage. It is good to know that these outlays will compel various stakeholders to come together in working towards maximising India’s growth story in enhancing employment; breaking new ground on innovation and technological research and in ensuring connectivity and its benefits are democratised meaningfully across India. SONAL WADHWA, EMAIL THE MUCH-NEEDED GREEN BOOST This refers to the editorial (“Path To Green Growth And Energy Transition”, BW, February 25). It is indeed heartening to know that in keeping with the nation’s commitment to combat climate change, the Union Budget 2023-24 has allocated a sizeable sum of Rs 35,000 crore for priority capital investments towards energy transition and net zero objectives. Other praiseworthy initiatives include rolling out specific measures for energy efficiency, electric mobility, energy storage, and green bonds – a combination that will serve to lower the economy’s carbon intensity, and spur a movement towards an environmentally conscious lifestyle and create green jobs. KAPIL SIDDHU, EMAIL BLIPP THIS PAGE TO GIVE US YOUR FEEDBACK INSTANTLY Submissions to BW |Businessworld should include the writer’s name and address and be sent by email to the editor at [email protected] or by mail to 74-75, Scindia House, Connaught Place, New Delhi-110001

Enabling Organizations To Launch And Accelerate Their Disability Initiatives Intellectual Disability Deaf/Hard of hearing Visual Disability Speech and language impairment Mental disability Orthopedic Disability Psychosocial Disability SUMMIT & AWARDS 2023 Co-Partner Monday, April 17, 2023 | The Lalit, New Delhi About Event The BW People Ask Insights Disability Positive Summit & Awards aims to provide a platform to discuss and promote awareness in this field, and to honour achievers, outstanding professionals, government and non-government organisations, enterprises that have made remarkable contributions to the quality of life for persons with disabilities as well as the initiatives that have helped facilitate it. More importantly, the Awards honour and showcase the extraordinary efforts of persons, groups, teams and organisations that foster an inclusive society where people with disabilities are not only accepted but cherished, celebrated and given equal opportunity to contribute to society. The award ceremony will be preceded by a day-long conference involving industry heads and experts like CEO, CHROs, Chief People Officers, CEOs and more, from various industries. This an excellent opportunity to gather insights, meet and network with industry peers. NOMINATE NOW 1. First Movers in Disability 2. Fast Runners in Disability 3. Shining Armour for NGOs 4. PWD Icon in Social Work 5. Leading Representation of PWD Employees 6. Best Allyship & ERG’s 7. Most Inclusive Educational Institute 8. Corporate PWD Icon 9. Lifetime Achievement Award 10. Breaking New Grounds 11. Social Inclusion with PWDs 12. Best Organization for PWD Inclusion 13. National PWD Icon 14. HR Leader 15. CEO of the year Categories FOR NOMINATION: Ashish Kumar | [email protected] | +91 97179 22747

16 | BW BUSINESSWORLD | 11 March 2023 CONTENTS VOLUME 42, ISSUE 10 11 MARCH 2023 Cover design by SHIV KUMAR Cover photograph of VILAS KALGUTKER 70 18 Jottings What GSI’s lithium find means for EV makers; NITI Aayog gets new CEO; Railways on the fast track; Now YouTube succumbs to Indi mania; and more 20 Columns Minhaz Merchant (p. 20); Krishan Kalra (p. 22);Amit Kapoor & Navya Kumar (p. 24); Kiran Karnik (p. 26); Vikas Singh (p. 28); Jayesh Shah (p. 30); Srinath Sridharan & Steve Correa (p. 32); Prabal Basu Roy (p. 50); T.V. Mohandas Pai & Nisha Holla (p. 58); Srinath Sridharan (p. 90);K.A. Narayan & Sunanda Bhanja Chaudhury (p. 96); Anu Sehgal (p. 118); Prakash Iyer (p. 120); Acharya Praveen Chauhan (p. 124) 34 The Big 5G Push With 5G deployment in full swing across the country, telecom regulators are getting ready to set in motion processes to secure the networks against attacks and set standards for the quality of service 42 Woes Not Over Yet The downward slide in the share price of some of the Adani Group companies continues even as the stock market shows signs of moving on 44 Trial By Fire Ruhail Amin on the Adani-Hindenburg face-off, why one should not declare the Adani Group guilty as yet, why they have to be given a chance to respond, and also why one cannot entirely discount the Hindenburg report, which has formally reminded the world of what people had been whispering 60 Wooing Investors A look at how there is a scramble among states to host investor meets to attract investments to fuel growth, as India sets its eyes on a developed country tag by 2047 Steering boAt With Panache Readying boAt For A Pivot: (L) Aman Gupta, Co-founder & CMO and Sameer Mehta, Co-founder and Chief Product Officer Photograph by Vilas Kalgutker

11 March 2023 | BW BUSINESSWORLD | 17 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 130 64 The Rise & Rise of D2C How the $55-billion D2C market in the country has moved from D2C ecommerce to D2C retail and to C2C or connect-to-consumer, a new phase of commerce where opportunities to connect exist everywhere 72 In Conversation Sameer Mehta, Co-founder & Chief Product Officer, boAt on building the next core which will be fuelled by Rs 500 crore investment, and much more 73 In Conversation Aman Gupta, Co-founder and CMO, boAt on the company’s impressive performance, focus on the domestic market, the brand’s next big pivot and why he is not banking on the public money for it, and more 74 Interview Darpan Sanghvi, Founder and CEO, The Good Glamm Group, whose buy-and-build strategies have created a promising path of interconnected businesses, on his businesses, their restructuring, his future plans and more 76 Driven By Purpose How celebrity-turned-entrepreneur Alia Bhatt has fashioned her venture Ed-aMamma as an answer to the lack of a sustainable, affordable homegrown kids-wear brand in the country 80 Impromptu Business & Brand-strategy guru Harish Bijoor on why the D2C offering must be available only through the platform, not everywhere and anywhere 82 D2C’s Decade Marketing veteran Karthi Marshan on the D2C revolution and how discerning customers enjoy being directly in touch with creators, and how smart creators delight in the rich insights they collect from this direct contact 84 In Conversation Kanwaljit Singh, Managing Partner & Founder of Fireside Ventures on D2C players taking the retail route and how this will impact their revenue and growth, where he sees the D2C market in the next 2 years, and whether the segment will see a slowdown as well 92 Pushing Inclusion Not-for-profits like Project Naveli and Aspire For Her are at the forefront of efforts to empower women through gender equality and inclusion and raise their contribution to India’s GDP 110 Master Strokes A discussion on the significance of 5G for businesses and how 5G is going to be the bedrock and a platform to build technologies and services upon, which were previously impossible 122 Bookmark A review of Ashok Ganguly’s Afterness – Home and Away & Prakash Tandon’s Punjabi Saga by Hardayal Singh, a former tax official and author of The Moral Compass - Finding Balance and Purpose in an Imperfect World 40 Spreading Wings A look at how Indian airline companies are scrambling to place orders for new, fuel-efficient aircraft as part of their fleet expansion plans 126 Last Word IndiaMART Founder & CEO Dinesh Agarwal on the positives in Union Budget 2023-24 for the retail sector, the need to address the challenges facing it and more Air India order: 470 planes Photograph by Boarding2Now

18 | BW BUSINESSWORLD | 11 March 2023 JOTTINGS THE NATIONAL Institution for Transforming India (NITI Aayog) has a new Chief Executive Officer in B. V. R. Subrahmanyam. Subrahmanyam steps into the shoes of former Union Commerce Secretary, Parameswaran lyer. The Appointments Committee of the Cabinet approved Subrahmanyam’s appointment for a period of two years from the date of taking charge of the post, describing him as an outstanding officer, who has served in different capacities. Iyer, who replaced Amitabh Kant as NITI Aayog CEO, has had a tenure of around seven months. He has now been appointed Executive Director of the World Bank, posted at its headquarters in Washington DC, for a tenure of three years. Amitabh Kant is now the G 20 Sherpa. — Team BW NITI Aayog Gets New CEO Photograph by Jroballo T HE GEOLOGICAL Survey of India (GSI)’s discovery of a 5.9 million tonne lithium reserve in the Reasi district of Jammu & Kashmir, comes at a time when India aims to transition rapidly to green and clean energy and electric mobility. Electric vehicles, as one may recall, are powered by lithium and lithium ion batteries. The discovery makes India the sixth largest repository of lithium reserves after Bolivia, Argentina, Chile, the United States and Australia – in that order. A McKinsey & Company report says the demand for lithium could shoot up from 0.5 million metric tonnes in 2021 to close to four million metric tonnes by 2030. What GSI’s Lithium Find Means for EV Makers Battery manufacturers believe that their production costs could come down by anything between five to seven per cent, should the rare earth metal be available locally. Vivek Bhardwaj, Secretary in the Union ministry of mines, has said that the discovery of the huge reserves of lithium reflects the efforts being made by government agencies in exploration of critical and strategic minerals. Further studies by the GSI will be necessary, however, to determine the feasibility of mining the mineral. India will need technological investments in refining and processing lithium on a par with China, which too has large reserves of the rare earth metal. And then, there are many a slip, as they say, between the cup and the lip. — Arjun Yadav Jammu & Kashmir

11 March 2023 | BW BUSINESSWORLD | 19 Railways on the Fast Track THE INDIAN RAILWAYS (IR) are on a fast track. The Production Units of IR are on course to set a new record in the manufacturing of electric locomotives in the 2022-23 financial year. As on 31 January 2023, IR’s Production Units, the Chittaranjan Locomotive Works in West Bengal, Banaras Locomotive Works in Uttar Pradesh and Patiala Locomotive Works in Punjab, have produced 785 electric locomotives. At this rate, by 31 March 2023, the last day of the current fiscal, the Indian Railways are likely to have manufactured around 940 electric locomotives, which will be a new record. And, it will break the record set in the last financial year. In 2021-22, 868 electric locos were produced, which was a record over all the previous years as the number of electric locos doubled in production compared to FY Photograph by YouTube Photograph by Soumen05 NOW YOUTUBE SUCCUMBS TO INDI MANIA 2021. The Indian Railways has also increased its coach production capacity in FY 2023. Till 31 January, a total of 4,175 LHB (Linke Hofmann Busch) coaches were produced to ensure convenient and faster mobility. It must be recalled that the IR received its highest every budgetary allocation for FY 2024 at Rs 2.4 lakh crore. Over the next three years, 400 new-generation Vande Bharat Express trains will be developed and manufactured. Good times are here to stay for commuters who love long train rides. — Ashish Sinha AFTER A LONG TENURE at YouTube, CEO Susan Wojcicki has decided to pass on the leadership baton to her trusted colleague Neal Mohan, the current Chief Product Officer of the video platform. Mohan’s ascension and reign at YouTube further asserts the hold of Indian-origin CEOs at the world’s most valuable companies. From Sundar Pichai, Satya Nadella, Shantanu Narayen to Leena Nair and Arvind Krishna, Indians have for over a decade now risen through the ranks at the largest companies in the world by demonstrating their unparalleled work rates, sharp business acumen and tech know-how. This has further opened the doors for many more Indians, who are increasingly being seen fit for top roles at the most global companies. Neal Mohan’s appointment comes on the basis of his strong track record at YouTube, where he has led some of the most important product launches over the years, including YouTube TV, YouTube Music, Premium and Shorts.Mohan is a Stanford graduate, who has also worked with Microsoft as manager in corporate strategy. He came to Google with the DoubleClick acquisition in 2007 and rose through the ranks to become SVP of Display and Video Ads and then YouTube’s CPO in 2015. — Rohit Chintapali

20 | BW BUSINESSWORLD | 11 March 2023 HINA’S population isn’t just shrinking. It’s greying. Several young Chinese couples don’t want more than one child. Raising children is expensive – from education, right through school and university, to buying larger family homes. Increasing numbers of young Chinese women have full-time careers. As in the West, work often takes precedence over large families. The economic consequences of an ageing China are grim: as the productive workforce falls, GDP growth will slow. For Indian policymakers China’s demographic decline can be a strategic weapon in dealing with Beijing’s territorial aggression. Not enough attention has been paid by Indian analysts on how China’s demographic vulnerability can be used to counter Beijing’s hegemonic ambitions in the region. Following the shooting down of a Chinese spy balloon airship by the United States, the Pentagon says Beijing has also spied on India and other countries with similar high-tech balloon airships. These are equipped with artificial intelligence (AI)-guided surveillance equipment and monitored real-time at military data centres in China. Beijing, however, has moderated its “wolf diplomacy” after a backlash from China’s Grey Future C Minhaz Merchant COLUMN MINHAZ MERCHANT 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, WHICH WAS ACQUIRED BY THE INDIAN EXPRESS GROUP several countries. China’s new foreign minister Qin Gang, the former ambassador to Washington, represents a marked change from his predecessor, the stentorian Wang Yi who has been pushed upstairs as director of the Chinese Communist Party’s Central Foreign Affairs Commission. China is about to enter the fourth phase in its historic evolution as a global power. The first phase began in 1949 when the People’s Republic of China (PRC) was founded by Mao Zedong after the nationalists led by Chiang Kai-shek, defeated in the country’s civil war, fled to Taiwan. During the cultural revolution in the 1960s, several million Chinese died through famine and state-sponsored violence. Gifted a seat in the United Nations Security Council (UNSC) following the Second World War, China established formal diplomatic relations with the United States only in 1979, three years after Mao’s death. T h e s e c o n d phase in China’s rise began in 1979 under the diminutive, soft-spoken Deng Xiaoping. Deng knew that the destructive Mao era had done little to advance China’s cause, economically or geopolitically. In 1979 China’s GDP was a mere $178 billion, barely ahead of India’s GDP of $154 billion. At $2.63 trillion, US GDP in 1979 was 15 times China’s GDP. As economic reforms took off in China in 1979, Deng prescribed his faPhotograph by Tomwang

11 March 2023 | BW BUSINESSWORLD | 21 by 2049, the centenary of the PRC’s founding. The police stations are basically Chinese centres spying on Chinese dissidents abroad. Many have now been closed down after an international outcry. The Mao phase was cathartic. The Deng phase was reformist. The Xi phase will come to be known in history as subversive. It has damaged China’s international reputation: Beijing has broken global treaties, ignored international laws and militarised islands in the South China Sea and the wider Indo-Pacific. China now stands at the cusp of the fourth phase in its evolution. This phase will unfold gradually as China’s demographic decline accelerates. China, analysts have started to realise, could grow old before it grows rich. Peter Gartcher pointed out in The Sydney Morning Herald: “A country’s fertility rate falls as it grows richer. It’s a mark of social success as women are better educated and have more options mous “hide and bide” policy. The US, immersed in defeating the Soviet invasion of Afghanistan, coping with the 1979 Iranian revolution and distracted by the 1980-88 Iraq-Iran war, took its eye off the ball. China began to steal advanced US technology under Washington’s nose. By the 1990s, China’s GDP had started to rise but it was in the 2000s that the real surge took place. By 2011, China’s GDP had spurted to $7.55 trillion, nearly half of America’s $15.60 trillion. Washington finally woke up to the threat China posed, marking the beginning of the USChina contest for future global supremacy. The third phase in China’s evolution, which would transform the nature of the relationship between the West and China, began in December 2012 with the ascent of Xi Jinping as president of the PRC and general secretary of the CCP. In the decade since he took power, China’s GDP has more than doubled to $17.30 trillion, within striking distance of current US GDP of $23.60 trillion. During the ongoing third phase in China’s rise as a global power, Xi has adopted an aggressive military posture. He has made reunification of Taiwan with the PRC a cornerstone of his legacy. Chinese-staffed “police stations” in several countries are part of Xi’s objective to be the world’s leading superpower, supplanting the US ing the third phase in China’s evolution and heralding the fourth, greying, phase. For Indian policymakers, China’s fourth phase presents an opportunity to remake the balance of power in the region and globally. India’s population will officially overtake China’s in April 2023. More importantly, India’s demography will remain robust well up to the 2050s. As China slips into its fourth evolutionary phase of slow decline, India must ensure it does not fritter away its own demographic advantage over the next two crucial decades. and fewer children. But in China’s case, it’s quite abnormal. Other countries have become rich first and then gone into population decline. China is in the process of becoming the first country to get old before it gets rich. The implications are profound. China has invested much of its national status and political standing in the fact that it’s the world’s most populous country. But it’s now on track to be overtaken by India. China’s accelerated ageing will restrain its economic growth.” Bloomberg’s Dr Plamen Dimitrov adds a grim reminder: “The average age of the Chinese is 38.5 years. In the 2050s it will be 51 years, and in the 2070s it will reach 57 years and stay at this level. In 2022 only 10 per cent of China’s residents were over 60 years of age. By the middle of the century this share will reach a third of the population. The big question is where will the money for the pensions of the hundreds of millions of elderly Chinese come from?” Xi knows that the demographic window is closing on China. It will slam shut in less than five years, endFor Indian policymakers, China’s fourth phase presents an opportunity to remake the balance of power in the region and globally. India’s population will officially overtake China’s in April 2023. More importantly, India’s demography will remain robust well up to the 2050s Photograph by DJV

22 | BW BUSINESSWORLD | 11 March 2023 We are in danger of getting buried under the weight of our own Garbage. Time to wake up and act – Simple solutions of segregating Our home garbage can help a lot. EAUTIFUL flamingos – the national bird of the Bahamas – have their largest population in the world on the lakes of East Africa. There’s a permanent population of about two million of these charming birds in that region; most of it being in Northern Tanzania. In India their concentration is mostly in the salt deserts of the Rann of Kutch. Mumbai has seen these migratory birds only since the 1990s and thereby lies a Story of Sustainability! As the city grew in the 1970s and 1980s so did the volume of untreated sewage in the Thane Creek nurturing the Algae that is almost staple food – other than shrimp – for flamingos. So their presence kept increasing – I guess through word-of-mouth-publicity just as it happens amongst humans – and increased to an astounding 1,30,000 in the winter of 2022. During the last decade or so, local residents have been celebrating the ‘Gorgeous Pink Brigade’. So, here is an interesting case of pollution generated by individual and civic neglect (untreated sewage) proving a boon for the birds. Strange are the ways of nature – at times beyond comprehension – because the same pollution has been lethal for fish. Nearly half the species of fish in the creek had disappeared between the 1980s to the year 2000. Look at another aspect. Mangroves – that zealously guarded crucial barrier against soil erosion by the constant ramming of sea waves – are now growing rapidly into the sea and making the creek narrower. Flamingos are indeed a beautiful sight; my friends living in the vicinity of Thane Creek, who have had the privilege to witness the spectacular ‘advancing army of pink’ on winter mornings just can’t stop raving about it. Exponential increase in the number of these gorgeous visitors to Mumbai is truly a blessing. I hope and pray that the ‘flamingo sanctuary’ continues to thrive and prosper. It might have happened as an ‘accidental marvel’ and an ‘inadvertent creation’ but it would be great if our planners and environmentalists can agree on logical steps and ensure that it can continue in an exclusive zone and, at the same time, fish diversity is unharmed. I am confident our environment scientists will find answers. Waste Management Anyway, the Festival of Flamingos is just a pleasant interlude; let me now address the bigger issue of ‘waste management’. It is a shame that some of us are utterly callous about throwing out plastic packets, beer bottles and other packing materials that land up in the sea – or add to the growing mountains of trash, paradoxically called landfills – but with recent rising concerns about ‘sustainability’, there is hope that this criminal activity will reduce and humanity will beB Festival of Flamingos in Mumbai Sustainability By Krishan Kalra Column

authorities, NGOs and commercial establishments engaged in the business of waste management. Special care needs to be taken for a small component of e-waste and medical waste generated in every house. These need specialised handling by experts and must not be mixed with either the dry waste going to the kabariwala or the wet waste for composting. We should make it our duty to keep these separately and hand over to specialised agencies designated by the government authorities. E-waste would typically include discarded battery cells, LED bulbs, tube lights, discarded cell phones, calculators, TV sets… anything ‘electronic’ with which the modern day homes are inundated. Almost every big city has places for handling these and scientific deep burial of whatever cannot be salvaged for recycling. Medical (or hospital) waste are things like bandages, baby and adult diapers, sanitary napkins, used band aids, cotton and surgical dressing as well as syringes, surgical gloves, catheters, PPP clothing – in short anything that can potentially carry infection. It is advisable to dispose of these also to authorised collection agencies that would carefully incinerate or sanitise these. Several hospitals too do not have their own incineration plants and outsource handling of their waste. Simple little things that can save us from big problems. It is estimated that every urban citizen in the country generates about 600 grams of solid waste every single day ... With an estimated population of 142 crores it adds up to about 355 tons a day or 130 million tons annually – enough to drown us all under its weight unless we make it our religion to manage our waste by assiduously segregating it at source come more concerned about mother earth – our only home in the enormous universe. It is estimated that every urban citizen in the country generates about 600 grams of solid waste every single day. Considering that a lot of our population lives in villages and probably has little or no access to modern day packaging – despite the small-pack onslaught of shampoo, soap, toothpaste, biscuits et al by aggressive marketing companies – and are also unlikely to waste food, our national per capita waste generation should be around 250 grams per day. With an estimated population of 142 crores it adds up to about 355 tons a day or 130 million tons annually – enough to drown us all under its weight unless we make it our religion to manage our waste by assiduously segregating it at source – at the point where it is generated, meaning our homes, factories, commercial establishments, eateries, restaurants, hotels and ensuring that the very minimum reaches the growing mountains of landfills in all cities and nothing flows into the rivers and the oceans. Recycling Ideally not more than 10 per cent should reach the landfills. Have a look at your waste bins at home; 20 to 30 per cent of it is accounted for by dry waste – old newspapers, magazines, glass, plastic – the disposal of which is relatively easy. Our efficient network of kabariwalas pick it up from the doorstep and most of it gets recycled. Out of the balance 70 odd per cent, almost 60 per cent is ‘wet waste’ or bio waste that merits processing and conversion to compost and high quality manure. We should either do this at home itself or at community centres organised by RWAs with the help of municipal The author is Trustee of The Climate Project Foundation, India and past president of AIMA and past BOG member of IIMC Photograph by CRS Photos Photograph by Akinshin 11 March 2023 | BW BUSINESSWORLD | 23

24 | BW BUSINESSWORLD | 11 March 2023 Awareness, Nourishment and Amelioration of Mother Earth), Amrit Dharohar, MISHTI (Mangrove Initiative for Shoreline Habitats & Tangible Incomes) focus on ecological conservation, involving local communities where feasible. The Green Credit Programme aims to bring about behavioural changes for environment-responsive action. Another flagship green initiative of the government is the vision for ‘LiFE’ – Lifestyle for Environment. It was introduced by the Prime Minister at COP26 in Glasgow and advocates for an environmentally conscious lifestyle at the level of individuals, communities and institutions. In addition to the budget’s fiscal impetus, India’s journey towards greener growth acknowledges, and should further solidify, the bid to alter behaviour to achieve the climate goals. More than USTAINABILITY has moved beyond being a trend to a policy imperative. Historically unviable consumption levels and energy usage patterns have effected ecological fragility and even ecological collapse in parts of the world. There is a looming threat that approximately three billion people will experience chronic water scarcity globally. The global GDP may suffer a loss of 18 per cent by 2050 if necessary action is not taken against the changing environment. The international society has an emergent consciousness that appreciates the need to discover alternate pathways for development, and urgently so. The greening of economic growth ensures that it is lasting and does not workers in the country. India’s budget 2023-24 has taken stock of this global consciousness and listed ‘Green Growth’ as one of the saptarishi or seven key priorities for inclusive development. The aim is for India to create large-scale green employment, reduce carbon intensity and transition into a net-zero carbon emission economy by 2070. An outlay of Rs 19,700 crores for the National Green Hydrogen Mission and Rs 35,000 crores for priority capital investments to facilitate energy security and transition are integral fiscal stimuli of this component. Energy storage projects, systemic integration and transmission of renewable energy are encouraged through earmarked funds and infrastructural support. Poetically penned, PM-PRANAM (PM Programme for Restoration, ARTHSASTRA by Amit Kapoor & Navya Kumar From left to right : Amit Kapoor & Navya Kumar S Habits for a Greener Economy hamper our future abilities to meet resource needs. A healthy natural ecosystem also yields better returns from all the economic activity it hosts and higher well-being for the people it shelters. India’s size, geopolitical influence, and heterogenous natural endowments entail the country’s major share of responsibility in the fulfilment of global sustainable development goals. The cost of environmental degradation is seldom borne by the perpetrators but rather by the poor, the local communities, and those who are socially and economically vulnerable. Climate-changeinduced crises like global warming are expected to impact India and its marginalised significantly. Recently, former US secretary of state Hillary Clinton announced a special climate resilience fund identifying heat as an impending ecological challenge for the informal

11 March 2023 | BW BUSINESSWORLD | 25 any of the other identified themes and sub-themes, Green Growth requires fundamentally rethinking our routine way of living. Other areas like digital transformation endorse their value and speak for themselves; the convenience of using digital payment methods makes it easier to shift away from a cash-based system. Although a shock such as the pandemic and the entailing restrictions on physical contact jump-started the behaviour change, once altered, the behaviour encashed immediate benefits in the form of higher convenience for the consumers. Industries could easily lower their transaction costs and increase profit margins. In such a case, the mere availability of capacity and infrastructure to support the digital transformation begins a virtuous cycle of usage and normalisation. On the other hand, there are no immediate and tangible returns for environmentally-conscious behaviour that further incentivise it. Buying ecofriendly products, weaning off chemical fertilisers or shifting to electric vehicles, burn a hole in the pocket before any long-term environmental and cost benefits are realised. The task of the national policy framework is thus, to make such conduct the easier choice to make. Recent research by the OECD and Harvard University surveyed more than 40,000 respondents in 20 countries that represented 72 per cent of the global CO2 emission to reveal that support for climate policies is dependent on three major factors – the perceived effectiveness of the policies in reducing emissions, their perceived distributional impacts on lower-income households (inequality concerns), and their own household’s gains and losses. Due to high vulnerability to climate change’s adverse effects, the findings for India showed that 72 per cent of people believe climate change will affect their life and humankind, as opposed to 16 per cent in Denmark. Over and above accepting the gravity of the situation, Indians at the lower echelons need surety that the long-term benefits will reach them to induce any significant lifestyle changes. Habits and behaviours will be crucial to India’s green transition, particularly due to its sizable population. At the individual level, the typical Indian’s lifestyle has habitually been sustainable, albeit out of economic necessity. There is a culture of thrifting, recycling, reusing, and mindful consumption. Nevertheless, inequality, poverty, and lack of access to resources increase the mental burden of survival concerns, leaving little space to make sustainable life choices – especially when they require more awareness or initial capital. A citizen and community-centric approach to green advocacy, robust legal regulations, and a generous dose of subsidies will garnish higher perceived trust and benefits for climate policies – making it the default choice. The primary focus should be on enabling quicker returns on greening for those who disproportionately bear the burden of its lack thereof. Amit Kapoor is Chair, Institute for Competitiveness and lecturer, Stanford University. Navya Kumar is researcher, Institute for Competitiveness Photograph by Ajijchan Habits and behaviours will be crucial to India’s green transition, particularly due to its sizable population. At the individual level, the typical Indian’s lifestyle has habitually been sustainable, albeit out of economic necessity. There is a culture of thrifting, recycling, reusing, and mindful consumption. Nevertheless, inequality, poverty, and lack of access to resources increase the mental burden of survival concerns ... Photographs by Skypistudio

26 | B W BUSINESSWORLD | 11 March 2023 N TODAY’S HYPER-COMPETITIVE world, everything is being “weaponised”. Enemy countries, even nations that are merely rivals, fight each other not with the weapons of yore, but a whole array of different and new ones. Apocalyptic nuclear bombs have cousins in radiological weapons, which can cause death by radiation, and electromagnetic pulses (EMP) that can destroy electronic circuitry. Anti-satellite weapons – through kinetic force or EMP – can disable vital space assets, like military and civilian satellites. Biology has been weaponised through viruses that can kill millions (Covid-19 might possibly be one such). Software viruses disrupt computer systems leading to data theft, shut-downs, financial mayhem, or even physical disasters. Amidst this sophisticated and advanced weaponry, there are rare contrary instances in which quarrelling countries have gone back in time. The most recent and striking example is the India-China clash in Galwan (Ladakh) in 2020. Two powerful countries, with the largest armies in the world, having the latest weapons in their armouries (including nuclear bombs), reverted back to medieval times and attacked each other with sticks and stones! Despite India’s restraint, China – through its attempts to WEAPONISING EDUCATION I COLUMN grab territory through its “salami-slicing” tactics – has violated many past agreements and protocols between the two countries. However, in this case, its army did actually respect the “no guns” one. A TTACKING THE ECONOMY Economics has been an increasingly favoured form of “attacking” an adversary. Disrupting a country’s economy through counterfeit currency is now more difficult, thanks to the increasing sophistication in note-making technology as also the far greater use of electronic transactions. Trade, however, continues to be a favoured economic weapon. The United States has been a leader in this, with “sanctions” against specific countries. Its restrictions on China were actually headlined as a trade war, and it has led the move to impose numerous sanctions against Russia as a response to the invasion of Ukraine. India, too, has been at the receiving end of such US sanctions, especially in areas related to nuclear, space and dual use technologies. Following China’s incursions in Ladakh, India banned certain Chinese apps and added constraints on its investments in certain areas. A far older – and much more subtle – weaponisation is that of education. In colonial times, this was used as a means of winning support (or even for religious conversion) by providing free education to children. Many would argue that while it broadened the mind and introduced new ideas – including those of freedom and democracy – it also influenced the very framework of one’s thinking, leading to a view through a British or Western lens. Macaulay is known to have conceived education as a means of making “babus” to serve the British administration in India. Maybe it made Indians into coconuts: brown outside and white inside. Yet, doubtless, it produced many who excelled in various fields and became independent thinkers. Some, despite (because of By Kiran Karnik n KIRAN’S KONTRARIAN KORNER n Photograph by XtockImages

11 March 2023 | BW BUSINESSWORLD | 27 The writer 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). ?) this education, became freedom fighters and waged an on-going battle against colonialism itself. REVISIONS IN HISTORY TEXTS School curricula and textbooks have, over the decades, been periodically revised. Contextualisation, understandable analogies and examples are welcome. To give one example, how many would understand the reliability of a component over time as a “bathtub curve”? Replacing these with day-to-day objects that the student is familiar with is a great way of teaching science or mathematics, and some excellent work on this has been done in India. Revisions in history texts, though, are far more contentious. It is true that “history is written by the victors” (a quote often attributed to Winston Churchill) and many studied texts that the British wrote. Independent India rightly chose to give it an Indian perspective, including neglected events, victories and personalities. Yet, in light of definite evidence of an event or defeat, denial or false claims will not enhance education. Studying history is necessary to understand our past: certainly, to take pride in great achievements. However, to over-glorify it or refer to a non-existent past is self-defeating. Alongside achievements, it is necessary to remember or acknowledge defeats and subjugation in times gone by, so as to not repeat the mistakes made then. More than a century ago, George Santayana said: “Those who cannot remember the past are condemned to repeat it”. Let us learn from true history so as not to repeat the disharmony and lack of unity that enabled outsiders to rule and dominate us. Education could be key to this, by promoting harmony and the idea of unity in diversity. Today, education and knowledge are more important than ever before. In recognition of this, we are scaling up and improving our education system. The National Education Policy lays out a road-map for this. Yet, in concrete terms, we continue to give it low priority, as evident from the outlays. Since the foundation is critical, it is sad that few states give schools the attention they deserve. Can the friendly rivalry between states extend beyond who gets the most FDI to who has the best schools? Recently, Delhi’s CM said his party will make government schools in Delhi and Punjab the “best in the world”. Will other states take up the challenge? Can this become a potent “weapon” in political battles? Going further afield, educationists – and, indeed, most people – worldwide have been horrified by the Taliban bans on girls’ education in Afghanistan. India has civilisational links with that country and, irrespective of the ruling regime there, has enjoyed friendship with its people. Should we not see what we can do to help, even as we try to exert pressure to cancel this misogynist ban? One way would be to offer structured courses for school children, using our online educational and content-creation experience, and teachers from the large Afghan community in India. These can be delivered to girls in their homes via TV, mobiles, or off-line through pen-drives; possibly even by satellite. While others have dropped bombs on that unfortunate country, can we rain education? What better way to weaponise education? Photograph by Juanmonino

28 | BW BUSINESSWORLD | 11 March 2023 BUDGET MAKING should be about optimal resource allocation, leading to better and effective outcomes. While the allotment is critical, the commentary is equally important. It signals the long-term direction. Fine Balance The budget is forward looking; wellcrafted, adheres to fiscal discipline and lays the foundation for a stable and predictable growth environment. It’s a good platform to spur economic activities, boost consumption, and create productive assets. Under an enabling condition, it will ‘value migrate’, pump-prime the economy and support sustainable and inclusive growth. India suffers of a poor and deficient infrastructure, which is an essential building block of the economy. This budget signals that the government is willing to shoulder the responsibility of infrastructure creation and equally lead the investment cycle. This will both nudge and goad private capex. Infrastructure Capex will drive sustainable and robust growth by creating assets like roads, bridges, transit, water, power, rail network etc. Infrastructure triggers growth, boosts the economy and pedals the virtuous growth cycle. COLUMN By Vikas Singh The author is an economist and columnist Most do not understand, least of all appreciate, the impact of capital expenditure. It’s a force multiplier. The benefits of public investment are more broadly shared than the benefits of private-sector investment. Infrastructure supplements the rural economy and rebalances growth. It is easy to lose sight of the smaller (but more tactical) benefits of infrastructure spending i.e. social infrastructure, cross sectoral and rural focused projects that accelerate and enable the broader and sustainable benefits to drive social mobility. The different departments must follow on and intensify their efforts to ‘unlock’ stuck projects and implement delayed projects. Monetising and commercialising the ones that have been completed is equally critical. Delayed or financially ‘overrun’ projects subtract value. Digital Enabled Growth is Equitable The budget has increased the outlay for digital and social infrastructure. The next decade could be India’s opportunity if we could ‘fuel’ the digital economy. Digital assets both propel and proliferate almost every service. A slice of this opportunity could raise our GDP by a couple of percentages and create a $200-billion opportunity, 15 million jobs (additional 10 million ‘related and tributary’ jobs) in the next decade. There is more opportunity in the healthcare, tourism, educational and leisure sectors. The multiplier effect would be manifold and across different sectors. The FM has handed the ‘growth baton’ to the states by increasing the support for capital expenditure, paving the way for greater participation of the states in the growth climate. Many do not appreciate that most aspects of ‘ease of doing business’ is within the purview of the states. One hopes they will ‘run along’ with the Centre to fulfill the aspirations of the citizens. Consumer Spending Will Spur Consumption It was good to see the honest and silent pillar of our society i.e., BUDGET FORWARD LOOKING, GROWTH ORIENTED

11 March 2023 | BW BUSINESSWORLD | 29 workforce. Skill and education must intertwine. Skill is the ‘currency’ of the knowledge economy, key to productivity value migration and competitiveness. About half the economic growth differentials between developed and developing economies can be attributed to poor health. Increased allocation for healthcare is welcome. But the finance minister could have gone further and rolled out a universal healthcare ecosystem. Rs 2,000 per capita can enhance life expectancy and increase the GDP by 0.5 to one per cent depending on the timing, geography, character of investment and the presence of the other enablers (governance, tributaries) etc. It will pay back in three years through the labour market, both by optimal labour force participation and productivity gains. Several other indicators improve too. The FM could have provided something for the urban poor and urban jobs. Similarly, in the job polarisation environment India must consider piloting Universal Basic Income. Similarly, she missed out the ‘excluded’, neglected and denied 80 per cent of employees in the unorganised sector. They wait. Widening Impact-Allocation Gap The budget lessons of the past must not be lost on the government. Budget allocation is of considerable interest and concern to every citizen, and the PM owes it to them to create robust ‘checks and balances’, and ensure that allotment is translated into impact. India is at an inflection point. Policymakers, both at the Centre and the states must prioritise economic and social reforms to enable the country to move up in the value chain. The budget has provided India the opportunity for inclusive growth. Photograph courtesy: Sansad TV the salaried class get their due. India is a consumer led economy and the lower taxes will ease out the inflationary pressure, and act as an antidote to the subdued economic environment. It will both stimulate and spur consumption. The demand creation will trigger the virtuous growth cycle of demand investment and job creation. The budget has largely ignored the real challenge of privatisation. Privatisation is not raising but optimising resources. Disinvestment is not problem solving. It is problem avoiding. MSMEs Key to Competitiveness The budget has several wide-ranging measures to support the beleaguered MSME sector. There is also something for the ‘ease of doing business’. However, in the absence of an enabling ecosystem it will fail to complete the virtuous loop. The government needs to change its mindset about MSMEs. It must nurture and partner with the MSMEs. Today it ‘monitors and inspects’ them. They will not need credit if they pay GST after receipt. India needs at least 20,000 mid-sized companies. (We have less than 5,000) to ‘link’ the larger 500 organisations to the market. These ‘middle’ companies are key to productivity and competitiveness. Agriculture is the fulcrum, and value driver for the rural economy. Infrastructure linking rural India to the urban market could provide an impetus to the farm sector. However, it may still be too late and too little for the farmers. Agriculture in its present form is not a viable profession. The feeders to the nation need money in their pocket, and not subsidy. India needs agri reforms. It’s easy but not simple. The government lost an opportunity to tax the rich farmers. It is a non-merit subsidy. Skill & Health are Empowering The government’s sharp focus on education and skill development will be instrumental in shaping the future of India’s The FM has handed the ‘growth baton’ to the states by increasing the support for capital expenditure, paving the way for their greater participation in the growth climate

30 | BW BUSINESSWORLD | 11 March 2023 HE SHARING ECONOMY can be attributed various names – collaborative economy, peer economy, gig economy. Call it what you may, the sharing economy has become ubiquitous and mainstream in a very short period of time. Ordering grocery, food and medicines, hailing a cab, renting apartments, you name it, it can be done from the comfort of our homes using an app. Not only that, one can even get a loan without going to the bank, which is just one of the many big-ticket applications of a sharing economy. Following are some applications of a sharing economy – l Cab hailing – Uber is the best-known example of a sharing economy. In India, we also know of Ola as a competitor to Uber, Distributed Computing Fuelling Sharing Economies T COLUMN Airbnb operate across the globe and help people find accommodation, whether for a short duration on vacation or on a long-term lease. Benefit – helps find lowcost apartments as opposed to hotel rooms and in locations where hotels may not be available. l There are other platforms that provide – w Grocery and food delivery w Co-working spaces w Crowd funding The driving force behind these new-age businesses is a technology known as distributed computing. These marketplaces and platforms are powered by software components residing on different machines and running on interconnected networks hosted in data centres spread across multiple locations. Computers in a distributed system operate in parallel but in case of a failure of one, the others continue to function. That makes the overall platform highly fault tolerant and business continuity is assured. The key characteristics of distributed computing are: l Openness – the design of the software is open and shareable with others l Transparency – easy interaction with different nodes l Concurrency – multiple machines running in parallel l Fault tolerance – ability to continue operations despite some points of failure l Scalability – exponential increase in computing power, on demand The earliest example of distributed computing was the Client-Server architecture. This has now evolved into n-tier and peer-to-peer networks. Client-Server: One machine acting as a shared resource and interacting with multiple machines including client computers, backend computers, printers, etc. Three-tier/n-tier: An advanced version of Client-Server architecture, it has a presentation layer, application layer and data layer, all communicating seamlessly with each other. Peer-to-peer: In this type, all machines are equal and client as well as server functions are split amongst them; hence, peers. While there are many advantages of distributed computing, the initial cost of setting up not only the hardware but also sophisticated software is quite high. Once that is accomplished, there is the complexity of operwhile there is Lyft in the USA and Canada. These apps basically match the rider with the driver who picks up the rider from the designated location and takes her to her destination for a fee. Benefit – for the rider, ease of reaching the destination without the hassle of driving, parking and maintaining a vehicle. For the driver, income in return for time and effort. l Peer-to-peer lending – individuals can lend or borrow money without going through the bank. The platform itself acts as the intermediary and the interest rate is decided based on the credit history of the individual who is borrowing. The risk of default by the borrower is borne by the lender. Benefit – opens-up possibilities for borrowers who typically would not be entertained by banks and financial institutions for a variety of reasons. For the lender, it is an attractive avenue for investment, the risk notwithstanding. l Apartment renting – platforms such as n By Jayesh Shah

11 March 2023 | BW BUSINESSWORLD | 31 The author is a digital transformation expert and currently Executive Director, AutomataPi Solutions ating and maintaining the system. In addition, there are concerns around data access control and security. That said, distributed computing, despite its disadvantages, provides unmatched scaling capability, high performance and last but not the least more reliable business continuity to the sharing economy platforms. The fundamental trait of the sharing economy is quick response to a demand via an instant messaging service and flexibility on both sides to accept or reject the product/ service. The easy availability of smartphones and the Internet has given businesses unfettered reach to their customers and suppliers which, hitherto was not so possible. With the advantages of lower cost and easy access for consumers on the one hand and extra income and independence for the gig workers on the other, come the disadvantages of concerns over safety of both consumers and workers and regulatory issues. The fact that this ecosystem works on trust also gives rise to other challenges in terms of possible fraud, data privacy, product quality, after sales service, etc. Nonetheless, the sharing ecosystem is growing at a fast pace and according to PricewaterhouseCoopers, globally it should reach $335 billion by 2025. From an Indian perspective, according to a NITI Aayog report, the gig economy engaged an estimated 77 lakh workers in 2020-21 constituting 2.6 per cent of the non-agricultural workforce and 1.5 per cent of the total workforce. It is estimated that this number will go up to 2.35 crores by 2029-30 forming 6.7 per cent of the non-agricultural workforce and 4.1 per cent of the total workforce. The sector distribution of this workforce is highest in Retail, followed by Transportation and then equally in Manufacturing and Insurance. Interestingly, the workforce engaged by passenger mobility and hyperlocal delivery services platforms is significantly larger than that employed by the Indian Railways, India’s highest employer. WHY IS THE SHARING ECONOMY SO ATTRACTIVE? This ecosystem provides consumers with cheaper goods and efficient services, using online platforms. The participating companies have the benefit of a flexible workforce and better efficiencies and cost effectiveness due to the digital nature of their asset light businesses wherein they are just the facilitators. It also gives them access to global markets because location doesn’t remain a constraint anymore. There are regulatory concerns amongst governments the world over, but since trust is the key word of the sharing economy, one way to assuage these concerns is by the businesses themselves to share data transparently with the regulators, thereby increasing the comfort levels of all stakeholders. From the perspective of gig workers, it provides them with the opportunity to work independently without being tied to a corporate entity and more often than not for a higher income. It allows them to have the work-life balance which may or may not have been possible in a job. No wonder then that it is attracting youngsters, both men and women, to this new work model. As John McAfee famously said, “The gig economy is empowerment. This new business paradigm empowers individuals to better shape their own destiny and leverage their existing assets to their benefit”. The sharing ecosystem is growing at a fast pace and according to PricewaterhouseCoopers, globally it should reach $335 billion by 2025 SOURCE: https://learn.microsoft.com/en-us/azure/architecture/guide/architecture-styles/n-tier N-TIER ARCHITECTURE STYLE

32 | BW BUSINESSWORLD | 11 March 2023 OLITENESS and argument aren’t a contradiction. Effective arguing involves understanding the opponent’s perspective and finding common ground. The ability to argue effectively is a life skill and can help achieve goals. As Homo Sapiens, we comprise just 0.01 per cent of the biomass (measured basis carbon), while the animal kingdom has just 0.4 per cent, with the bulk being trees (82 per cent) and tiny bacteria (13 per cent). Yet humans dominate and impact the world significantly. The societal context expects humans to constantly influence and impact others around them. Influencing is the ability to sway or shape the thoughts, feelings, or actions of others, and involves persuasion and communication skills. To impact is to drive a certain outcome, a lasting effect. Influencing and impacting are important in our daily lives, including the workplace. Rather it is a life skill. The ability to argue effectively can help one achieve one’s goals and make one’s voice heard. However, effective arguing is not just about winning, but also about understanding the other person’s perspective and finding common ground. Effective engagement, PSRINATH SRIDHARAN IS AN AUTHOR (TIME FOR BHARAT), POLICY RESEARCHER & CORPORATE ADVISOR STEVE CORREA IS AN EXECUTIVE COACH, OD CONSULTANT & AUTHOR (THE INDIAN BOSS AT WORK) PEOPLE TALK The Art of the Polite Argument in Business be it in business, politics or in one’s personal life should have the ability of sharing of one’s views with others, and equally being receptive in receiving the views of others. The ability to ‘agreeing to disagree’ with each other’s views is a great business skill. In the traditional Indian Nyaya system, also known as the Nyaya-Vaisheshika philosophy, logic and arguments were valued. It is one of the six classical Indian systems of philosophy and considered to be the oldest Indian system of logic and epistemology. The Nyaya Sutras, which are attributed to the ancient Indian philosopher Gautama, form the foundation of this system. The Nyaya system is known for its emphasis on critical thinking and logical reasoning, and it has had a significant influence on Indian philosophy and education. One of the core principles of the Nyaya system is that knowledge is acquired through perception, inference, comparison, and testimony. The Nyaya system also lays out a system of logic, which includes the syllogism, which is a method of logical reasoning that is still used today. It would be worth keeping the following in mind: Gather all the facts: When preparing to argue, it is essential to gather all available facts and evidence to support your position. This will add credibility to your argument. Additionally, it is essential to anticipate the arguments that your opponent is likely to make and be prepared with your views on those. Emotional intelligence: It is essential to be aware of your own emotions and those of your opponent. Emotions can often get in the way of logical reasoning, so it is important to manage your emotions and stay calm and focused. It is also important to be aware of your opponent’s emotions and to respond with empathy and understanding. By acknowledging and addressing the emoSrinath Sridharan & Steve Correa

11 March 2023 | BW BUSINESSWORLD | 33 also shows respect and builds trust, which can be essential in finding a mutually acceptable solution. For example, when you respond, it would be helpful to keep your points simple and to repeat them for emphasis. Avoid using the word “but”, as it comes across as dismissive or confrontational. Instead, try using phrases like “that’s interesting, and I would like to add a perspective” or “I understand where you’re coming from, but I disagree.” Finally, do combine gestures to emphasise your arguments. After all, our language evolved from gestures. Researchers share five types: deictic (pointing to person or thing), iconic (showing action such as showing gesture of running), metaphorical (spreading arms to indicate whole world), symbolic (thumbs up sign), motor gestures (also called beat gestures such as banging the table while saying, ‘listen to me’). Listeners are 20 per cent more likely to correctly remember when beat gestures are used to emphasise the spoken word. Effective arguing is an essential skill that requires preparation, understanding of the opponent’s perspective, and the ability to stay focused. Make your voice heard, even without shouting! Make your presence felt, without screaming. Make your points accepted, without hurting. After all, in our lives, we need to make our point, and not enemies. Effective arguing is an essential skill that requires preparation, understanding of the opponent’s perspective, and the ability to stay focused. Make your voice heard, even without shouting! Make your presence felt, without screaming. Make your points accepted, without hurting. After all, in our lives, we need to make our point, and not enemies tional underpinnings of an argument, you can often defuse the situation and move towards a more productive conversation. Be respectful and courteous: Even when we disagree with someone, it is important to treat them with respect and courtesy. This means avoiding personal attacks, name-calling, and other disrespectful behaviours. Language that is clear: When making an argument, it is important to use language that is clear and concise. Avoid using jargon or technical language that may be difficult for your opponent to understand. Choose your battles: When arguing, it is also important to choose your battles. Not every point in an argument is worth fighting over, and it is essential to decide which issues are most important to you. When listening to your opponent, it is essential to pay attention not just to what they are saying, but also to what they are not saying. (“He will win who knows when to fight and when not to fight,”: Lao Tzu, in The Art of War). The power of listening: Effective arguing is not just about making your own point heard, it is also about listening to the other person’s perspective. By actively listening to what the other person has to say, you can gain a better understanding of their position and find ways to bridge the gap between your views. Listening Photograph by Vatruska

hen was the last time you muttered inanities, swore under your breadth, thumped the desk or sometimes even felt like hurling your smartphone out of the window when the website you wanted to open, the files you wanted to upload, or the videos you wanted to download for viewing took what seemed like eons because of inadequate speed? Most certainly, not in the recent weeks, at least. Reason: Since the launch of the 5G service in October last year, the Internet has looked like running on steroids in at least 280 cities and towns across a dozen states. With the ultra-fast 5G service, it barely takes seconds to upload and download all sort of files. And there are no extra charges for the service now. Tariffs may change going forward. But for now, the telecom service providers (TSPs), specially Reliance Jio Infocomm and Airtel, are scrambling to deploy the 5G services across towns and cities. Reliance Jio and Bharti Airtel intend to rollout the 5G service across the country this year. Jio has rolled out Jio True 5G service in as many as 277 cities. “Jio users in these cities will be invited to the Jio Welcome Offer, to experience unlimited data at up to 1 gbps+ speeds, at no additional cost,” the company said. The second biggest player, Bharti Airtel on February 15 announced the launch of its cutting-edge 5G service, Airtel 5G Plus, in the north-eastern cities of Kohima, Dimapur, Aizawl, Gangtok, Silchar, Dibrugarh & Tinsukia. The service is already live in Guwahati, Shillong, Imphal, Agartala and Itanagar. With 5G deployment in full swing across the country, telecom regulators have set in motion processes to secure the networks against attacks and standardise the quality of service 5G:GAINING GROUND IN DEPTH TELECOM W By Ashish Sinha 34 | BW BUSINESSWORLD | 11 March 2023

By Ashish Sinha 277+cities enjoying Jio True 5G 11 March 2023 Photograph by Solarseven | BW BUSINESSWORLD | 35

“5G MAY CORNER 50% OF MOBILE SUBSCRIBERS IN 5 YEARS” “From India’s first live 5G network in Hyderabad to India’s first private 5G network at the Bosch facility in Bengaluru to partnering with Mahindra & Mahindra to make its Chakan manufacturing facility India’s first 5G enabled auto manufacturing unit, Airtel has been at the forefront of 5G innovation,” the company said, adding that its 5G service will offer massive speeds, best voice experience where no SIM change is needed. Existing Airtel 4G SIM is 5G enabled and existing data plans will work on 5G until the rollout is complete. Network Function Virtualisation (NFV) The 5G service deployment entails technology changes at the network level, such as Network Functions Virtualisation (NFV), which is a way to virtualise network services that have traditionally been run on proprietary hardware. NFV helps in reducing operational expenditure and capital expenditure of the telecom service providers. Secondly, On Ericsson’s 5G business deals in India India continues to be a strategic market and has been consistently performing well. In Q4 2022, sales have increased in the Market Area Southeast Asia, Oceania & India by 21 per cent primarily driven by 5G market share gains in India. In Q4 2022, India ranked second amongst the top 5 countries in net sales after the United States. In India, we have been a partner to the country’s telecom journey across generations of technology from 2G to now 5G. Our recent partnership with Bharti Airtel and Reliance Jio is enabling them to deploy 5G networks across the country. As per the latest Ericsson Mobility Report, the average data traffic per smartphone in the India region is the highest globally. 5G is expected to constitute over 50 per cent of mobile subscriptions in India by 2028. On Ericsson driving innovations out of India Ericsson has more than 22,000 employees in India across various functions including design, R&D, manufacturing, sales and marketing to managed services. We have 1,800+ R&D professionals here. We have one of our three Global AI Accelerators (GAIA) located in Bengaluru that does cutting-edge work in artificial intelligence (AI) and machine learning. We are partnering with Capgemini to set up this 5G Lab in India to test out the potential 5G use Nitin Bansal, Head of Ericsson India and Head of Network Solutions, South-East Asia tells Ashish Sinha about the importance of 5G services and how the company is hiring 2,000 people for its technology centre in Pune. Excerpts: 55+cities on Airtel 5G Plus “5G is in an early state of rollout and operators have been also deploying Non Standalone (NSA by Airtel) versus Standalone by Jio so performance is also different" PARV SHARMA, Senior Analyst, Devices & Ecosystem, Counterpoint Research IN DEPTH TELECOM 36 | BW BUSINESSWORLD | 11 March 2023

11 March 2023 | BW BUSINESSWORLD | 37 with NFV, network scalability becomes easier and more convenient for the telcos. Recently, the Department of Telecommunications proposed setting up security standards around NFV. Says Parv Sharma, Senior Analyst, Devices and Ecosystems, Counterpoint Research: “The security standardisation move is important as multiple players like telecom service providers, cloud providers, original equipment manufacturers and orchestrators have to work together to enable services. As TSPs move from proprietary hardware to virtualised machines running network functions, the attack surface increases.” “We need massive investments in 5G infrastructure. Our tower presence, fibre networks, and other elements are still on lower scale. Virtualisation of networks will help us expedite the infrastructure rollout in a cost-effective way. Also, as the demand surges, we can scale up almost in real time. So, from an Indian context, NFV could become a great enabler in creating an optimal 5G experience in the country,” says Faisal Kawoosa, Chief Analyst, TechArc, a newage technology market research firm. Are the security standards for NFV country-specific or global in scope? “By and large, the standards address same concerns, however countries may tweak a few to match their specific needs,” says Kawoosa. Agrees Sharma from Counterpoint Research. Standards are set to form an agreed base for security throughout mobile networks. However, for different contexts and regions, different security requirements enforce guidelines to maintain a healthy ecosystem, he says. “For NFV and related technologies, standards from multiple bodies were taken as a reference, such as 3GPP, ITUT, ISO, and the European Telecommunications Standards Institute, and then comprehensive country-specific security requirement was drafted by Indian Telecommunication Security Assurance Requirements. Another such body is the UK Telecom Security Requirements,” explains Sharma. cases for enterprises in India. On capabilities to support Indian telcos tap new revenue streams The projected value of 5G-enabled digitalisation revenues in India is approximately $17 billion. 5G networks are being rapidly rolled out in India and the focus is initially on consumers and bringing capacity to networks. For consumers, enhanced mobile broadband and fixed wireless access will continue to prevail for consumers and we will start seeing more innovative services, including new consumer services based on AR/VR like gaming and immersive entertainment. On increasing headcount in India We are now adding around 2,000 people to establish a technology centre in Pune and ramp up our production capacity and operations with our partner, Jabil. Additionally, we are hiring for roles like data analysts, data scientists, artificial intelligence, machine learning, and people who can do network slicing and manage cloud applications. Our strategy is to make full use of these technologies by upskilling our existing workforce and tying up with universities for campus placements along with hiring from the open market. 600 mbps+ speed on offer

38 | BW BUSINESSWORLD | 11 March 2023 Why is 5G Free Now? As mentioned earlier, the 5G services are currently being offered at “no extra cost” by all service providers. This, when the operators have spent big money on acquiring and deploying the 5G services. Is there hesitancy among the TSPs on charging a premium for 5G? “Right now, we are at an early commercial stage, therefore it is a good move to enable more users to experience 5G. At this stage we need to have minimum barriers to entry for consumers,” says Kawoosa, adding, “If we have a tariff plan for 5G, consumers will start comparing the cost-benefit with 4G, which might not be substantial at the moment. There is not a single use case that has been enabled by 5G for consumers, so far. So, why should they pay for 5G services?” Sharma says operators will start to increase the the average revenue per user (ARPU) for 5G plans once they reach a significant coverage and user base. What about the quality of the 5G service offered currently? According to Kawoosa, the 5G service is still patchy and does not offer a homogenous experience across the cities and localities within cities. “But, it’s getting better literally every hour. I think in the next 2-3 months, we should see a different 5G experience in the country,” says Kawoosa. Sharma expands on the difference in services offered by the current operators. “5G is in an early state of rollout and operators have been also deploying Non Standalone (NSA by Airtel) versus Standalone by Jio so performance is also different,” adds Sharma. What is NSA and SA? Airtel opted for 5G NSA, while Jio has opted for 5G Standalone (SA). The NSA mode supports networks on the already existing core of 4G. Also, NSA 5G enables telcos to roll out 5G at a lower cost relative to SA 5G that has a separate core and radio network. Jio is rolling out a 5G SA network, and had bought 5G spectrum across 700 MHz, 3500 MHz, and 26 GHz bands. SA 5G architecture is considered more advanced with zero dependency on 4G network. It offers powerful functionalities like low latency, massive machine to machine communication, 5G voice, Edge computing and network slicing, say experts. BTS & Regulatory Scenario The 5G service will require own set of base transceiver stations or BTS. A BTS is a piece of equipment that facilitates wireless communication between user equipment and a network. In October last year Telecom Minister Ashwini Vaishnaw asked telecom companies to install at least 10,000 5G BTS every week. While that number has been difficult to achieve, currently, there are 66,592 BTS deployed for 5G services. In December, this number was around 21,000. Since then, there has been a three-fold increase in BTS deployment, the data shows. Going forward, the TSPs will have to adhere to the changing regulatory scenario with respect to the 5G services. While the DoT has sought comments and suggestions for the proposed security standards for NFV, a key aspect with direct bearing on opex and capex, the Telecom Regulatory Authority of India is expected to recommend Quality of Service (QoS) norms with respect to 5G services and 4G services. The telecom authorities are clear that TSPs will have to maintain the set QoS standards particularly in the rural and semi-urban areas. “The QoS for existing 2G, 3G and 4G services should not get impacted in any way, the minister is very clear on this matter,” a senior official said. Meanwhile, the 5G services continue to roll out across the country. For the sector, it also means creation of additional jobs and job opportunities for the skilled workforce. [email protected]; @Ashish_BW “Right now, we are at an early commercial stage, therefore it is a good move to enable more users to experience 5G. At this stage we need to have minimum barriers to entry for consumers” FAISAL KAWOOSA, Chief Analyst, TechArc IN DEPTH TELECOM NFVenables network slicing NFVsecurity standards on anvil 5G @ no extra cost Photograph by Tech Arch

11 March 2023 | BW BUSINESSWORLD | 39 AS a global partner to some of the most reputed companies, HSO has evolved to one of the world’s top business solution and implementation partners. As an organisation, it enables digital transformation with an ‘industry-first’ vision. It aims to fill gaps in technology and business processes with industry-driven best practices, and also invests in the future through its people. HSO prides itself on being the results company, and its charter is led by an individual who exudes this very quality. Prabhat Nagaraj is the Managing Director for India and Philippines. His result oriented approach began very early in his career, right from his very first job. When he discovered that a reputed company was set to visit his college to hire chemical engineers, he also discovered that there was a vacancy in ERP, and set his heart on it. He took the initiative to speak to a senior leader, who responded to Prabhat’s request and interviewed him. Fourteen people were shortlisted for the previously decided roles, and Prabhat was the unexpected fifteenth member. He was also the only member who was invited for a further round in the office. “Those five minutes changed my life,” says Prabhat, who began a career as an ERP consultant, and has since garnered experience across various other roles, in multiple geographical locations. This incident transformed his understanding of time - a few minutes spent listening with an open mind could provide an insurmountable amount of information. As a leader, Prabhat Nagaraj believes in practising what you preach. The dirtier your hands get, the more you learn. This has also moulded him into the kind of leader who understands everything the organisation needs to do, and why. He is a firm believer in keeping his door open for anybody who has ideas, or even simply the urge to have a conversation. Whether it is a senior leader or an intern, Prabhat is always up for a discussion. “The ideas you’re looking for can be found if you’re willing to listen,” he says. Over the course of his career, Prabhat’s reputation precedes him wherever and with whomever he chooses to work. His career so far has been testament to this very same reputation, where PRABHAT NAGARAJ, Managing Director for India and Philippines- HSO India he is known for getting things done. Prabhat has worked across various locations, and has also undertaken a diverse set of roles and responsibilities. He believes in learning by doing, and this has also shaped him into a leader who is very capable of adapting himself as and when the role demands it. “Let it rest” While physical and mental rest takes precedence for every human being, Prabhat believes in rest for everything else at work - including problems. As an introspective individual, Prabhat realised that he was a very non-confrontational person. It may have come to be considered a weakness in a leader, but Prabhat decided to transform it into a strength. When confronted with a problem, he says deciding to act later, rather than sooner, sometimes works greatly to the benefit of the greater good. “Relationships are intact, actions are better thought out, and most times, the problems solve themselves,” he says. Micro view, macro vision The pandemic brought new challenges with it, which also meant new work cultures. Being in the business of transformation, HSO was quick to adapt to both client as well as employees’ needs. The pandemic was also a turning point for Prabhat in his career, as the opportunity at HSO arose, along with the responsibility of creating a positive difference. At the helm of affairs for India and Philippines, Prabhat consistently strived to create an inclusive and supportive work culture for every member of his team. Having spent about two decades in the USA, Prabhat comes with immense experience of handling multiple functions and diverse teams. He possesses the unique combination to view the microscopic details in an organisation, while never losing sight of the larger vision that the company, and every individual within it, needs to work towards. Prabhat is always one to lead, and ensure his team walks with him and not behind him. And therefore, in the short time that he has been in this role, he has created opportunities for passionate individuals, and continues to do so. In his current role, he is very optimistic about the growth in India and the Philippines, and also what HSO as a company has to offer to the ecosystem at large. “AN OPEN MIND AND AN OPEN DOOR CAN HAVE ALL THE ANSWERS”

40 | BW BUSINESSWORLD | 11 March 2023 by engines from GE Aerospace. All single-aisle aircraft will be powered by engines from CFM International. N. Chandrasekaran, Chairman, Tata Sons and Air India described the purchase order as “a large transformation journey” for Air India. “These new aircraft will modernise the airline’s fleet and on-board product, and dramatically expand its global network. The growth enabled by this order will also provide unparalleled career opportunities for Indian aviation professionals and catalyse accelerated development of the Indian aviation ecosystem,” he said. This LoI is in line with Vihaan.AI, the airline’s transformational roadmap over five years with clear milestones. Vihaan.AI is aimed at putting Air India on a path of sustained growth, profitability and market leadership. The first lot of the new aircraft will enter service in late 2023, with the bulk scheduled to arrive from mid-2025 onwards. In the interim, Air India has already started taking delivery of 11 leased B777 and 25 A320 aircraft to accelerate its fleet and network expansion. The acquisition of new aircraft, which will come with new cabin interiors, complements Air India’s plan to refit its existing wide body B787 and B777 aircraft with new seats and inflight entertainment systems. The first of these refitted aircraft will enter service in mid-2024. IN DEPTH AVIATION India’s aviation sector is abuzz with domestic airline companies scrambling to place orders for new, fuel-efficient aircraft as part of their fleet expansion plans to meet the growing surge in air traffic By Ashish Sinha RACE IN THE SKY T he Tata Group’s love for Air India got a whole new meaning this Valentine’s Day. On February 14, Tata Sons placed an order for a whopping 470 aircraft, with an option to buy 370 more planes, by signing Letters of Intent (LoI) with Airbus and Boeing, the two largest manufacturers of aircraft. The order consists of 40 Airbus A350s, 20 Boeing 787s and 10 Boeing 777-9s wide body aircraft, as well as 210 Airbus A320/321 Neos and 190 Boeing 737 MAX single-aisle aircraft. The A350 aircraft will be powered by Rolls-Royce engines, and the B777/787s Existing fleet: 700 aircraft Air India order: 470 planes Photograph by Boarding2Now

11 March 2023 | BW BUSINESSWORLD | 41 egy, IndiGo has formed a codeshare partnership with Turkish Airlines and also placed an order for almost 500 aircraft from Airbus. According to Vinay Malhotra, Head of International Sales, IndiGo, the airline has already placed an order for aircraft with the French airplane manufacturer Airbus, which has committed to deliver consistently until 2030. IndiGo is presently operating a fleet of over 300 aircraft. The pace and timing of the airline’s expansion plans will be influenced by the delivery schedule of these aircraft. As and when the new planes are received, they will be put into service on both domestic and international routes, Malhotra added. SpiceJet, currently under financial stress and entangled in legal issues over payments to its former promoter, has also placed orders for some aircraft. And as and when the nowgrounded Jet Airways takes to the air, it will also need new aircraft. The latest data from the Directorate General of Civil Aviation reveals that India’s air passenger traffic surged 47 per cent year-on-year in 2022. In actual terms, a total of 123.2 million passengers flew in 2022. This remarkable growth, experts say, signals a robust rebound from the subdued travel demand experienced in 2020 and 2021 due to the Covid-19 pandemic. Perhaps, this is why the airline companies are gearing up with orders for newer, better and fuelefficient aircraft, sensing a mega surge in aviation traffic starting 2024. ashish.sinha@ businessworld.in More Jobs? Aviation experts say the delivery of new set of aircraft will necessitate the need for skilled manpower. For example, the 40 A350 aircraft that has been ordered will be mostly used for ultra-long-haul routes. International regulation stipulates a minimum of eight crew members on a long-haul flight carrying 300-plus passengers, as well as a minimum of four pilots in the cockpit. Additional pilots and crew at the destination for the return/ onward journey will take the number of in-flight support to 20-25 personnel. Add to it the ground crew as well as maintenance and support staff of at least 10-12x the in-flight staff strength. Thus, for the 40 A350 airceaft, an estimated 16,000 personnel would be needed. Of course, the various positions will be filled in tandem with the aircraft deliveries and other factors. The short-haul flights, like those expected to be serviced by Airbus A320/321 Neos and 190 Boeing 737 MAX, requires 4-5 crew members and a two/ threemember team in the cockpit. Mega Order Book It’s not just Air India purchasing new RACE IN THE SKY New order: 1,200+ aircraft aircraft. In fact, the half-dozen carriers making up the domestic aviation sector have a combined order book of more than 1,200 aircraft. Of course, carriers have placed orders at different times in the past few years. According to aircraft maker Boeing, India would require over 2,000 new aircraft over the next 20 years to keep pace with the passenger growth. If one sets aside the latest LoI from Air India, then IndiGo, the largest carrier by market share has already placed an order for around 500 aircraft. New entrant Akasa Air’s order is for 72 Boeing narrowbody aircraft of which it has received 16. Go First has ordered for 72 planes while Vistara is to receive 17 more Boeing planes till 2024. IndiGo, the largest domestic airline in India, has announced plans to focus on expanding its operations in the international sector, particularly Europe. As part of this expansion stratAirbus order: 250 planes Indigo order: 500 planes Boeing order: 220 planes

42 | BW BUSINESSWORLD | 11 March 2023 C alm seems to have returned to the stock market after the initial shock. But Adani Group shares continue to get hammered. The losses in terms of market capitalisation erosion for 10 Adani Group companies have expanded to $130 billion from $108 billion that was wiped off in the first seveneight trading days after January 24. On January 24, US-headquartered short-seller Hindenburg Research issued a report alleging that the Adani Group had engaged in share manipulation and fraud, although the company has consistently denied these allegations. By mid-February, responding to the growing criticism from opposition political parties and independent experts, the central government, in a related matter before the apex court, indicated its ‘no objection’ in constituting a “committee” provided a clear remit for any such committee was put in place by the apex court. It should be noted here that two public interest litigations (PILs) have been filed in the wake of the Hindenburg report that alleged fraud and stock price manipulation by the Adani Group. One of the PILs has demanded that short selling be declared a fraudulent practice. Expanding on the need for a “clear remit” to any such committee, the legal team representing the central government submitted before the apex court that the absence of a clear remit may adversely impact the flow of money. They added that a clear remit would avoid any unintentional message to international or domestic investors that even a regulator or statutory authority requires monitoring by a committee appointed by the highest court of the country. The apex court has reportedly asked the central government to make suggestions on the remit for the proposed committee. It will then deliberate on it, media report stated. Meanwhile, in a statement to the highest court, market regulator SEBI stated that it is currently investigating both the accusations made in the Hindenburg report and the market behaviour that occurred before and after the report’s release. The Sebi is looking for any violation of SEBI regulations, including those linked to short selling. The market regulator, in its written note, is said to have explained the legal status of short-selling. Expanding on it, a market expert explained: “The majority of securities market regulators, particularly those in developed securities markets, acknowledge short selling as a legitimate investment activity. Rather than outright prohibiting short sales, they have allowed it to occur under a regulated structure.” Even the International Organisation of Securities Commissions has assessed short selling and securities lending practices in various markets and has advised that transparency in short selling, as opposed to a ban, is preferable. “India adheres to this approach of regulated short selling and has established its regulatory framework accordingly,” SEBI submitted in the top court. Stock Taking Although some of the shares belonging to the group have experienced a slight INDEPTH ADANI GROUP The downward slide in the share price of some of the Adani Group companies continues even as the stock market shows signs of moving on By Team BW NO END TO WOES YET Photograph by Umesh Goswami

11 March 2023 | BW BUSINESSWORLD | 43 analyst said indicating to the latest statements coming from the Financial Times Stock Exchange (FTSE). On February 17, FTSE indicated its intention to proceed with the proposed modifications to the index review for Adani Group (India) and its affiliated securities. The London-based exchange acknowledged that the trading of Adani stocks was currently constrained due to the daily price limitations. FTSE said: “…further to the index announcement on 31 January 2023, FTSE Russell has been monitoring and reviewing publicly available information relating to the Adani Group (India) and its associated securities.” How significant will this be can only be known in due course. Meanwhile, the stock market appear to ‘move on’ basis strong market fundamentals. “The majority of securities market regulators, particularly those in developed securities markets, acknowledge short-selling as a legitimate investment activity” rebound on the stock exchange following a significant decline, certain stocks are still viewed as plummeting. Adani Total Gas, Adani Power, Adani Green Energy, and Adani Transmission shares have not recovered and are still enduring losses. However, shares of Adani Enterprises, Adani Ports and SEZ, and Adani Wilmar have seen modest improvements in the previous weeks. Adani Green: The shares of Adani Green Energy dropped fell a whopping 67.8 per cent from its closing price of Rs 1,916.8 on January 24 to Rs 616.30 on February 16. However, on February 17, Adani Green Energy’s shares rose almost four per cent, ending 12 consecutive days of losses. According to a Reuters report, Adani Green has a refinancing strategy that will be disclosed once the current fiscal year concludes. And this was the reason behind the recovery, said a market analyst. In terms of market cap decline, as on February 17, the market cap of Adani Green Energy stood at Rs 99,754 crore, a drop of 67.1 per cent compared to Rs 3,03,113 crore on January 24. Adani Total Gas: The stock price of Adani Total Gas slumped 75.15 per cent in 19 straight days. On February 17, a Friday, the stock dived 5 per cent to hit the lower circuit. At Rs 973.75, it also hit its 52-week low against a previous close of Rs 1,024.95. In terms of its market cap, the fall was a steep 75 per cent since January 24 when the market capitalisation stood at Rs 4,27,326 crore. On February 17, it was Rs 1,06,846 crore. The near-term outlook for some of the Adani stocks remains in the ‘waitn-watch’ mode, as one senior market

44 | BW BUSINESSWORLD | 11 March 2023 I F ONE THOUGHT TESLA had the most meteoric valuation rise amongst all global stocks, think thrice. That honour would be Adani’s. Over 33x in 3 years. Despite the pandemic panic. Despite the natural challenge of resources being finite. Despite the street talk that their yet-in-build-mode industrial and commodities play needing outcomes-yet-to-be-proven. Despite lapping up almost every 2nd large new business opportunity for a developed-India to be. Despite entering into newer businesses faster than management consultants can even finish their advisory reports, or the regulations even fully drafted for those sectors. Simply because the markets felt that the group had clout in Delhi. It won’t be amiss to say that Adani has a part to play, in executing a large part of Indian growth story, especially in its infrastructure needs. It is not just Adani’s ability to dream big that merits his rise to success. Political patronage solely cannot be the success driver either. It sure could be a catalyst. One must understand that his execution capability to bring his plans to fruition is phenomenal. It was even a macho street talk amongst retail investors, that Adani closed a recent M&A transaction, without even the perfunctory due diligence, and the proud logic being that the company bought was COUNTERPOINT / THE ADANI FIASCO One should not declare the Adani Group guilty as yet. They have to be given a chance to respond. But the Hindenburg report has reminded the world of what people had been whispering, if not openly talking, about ADANI’S AGNIPARIKSHA By Ruhail Amin

11 March 2023 | BW BUSINESSWORLD | 45 ing to own few percentage points of the Indian GDP? Eventually, for whatever optics it serves, he chose ‘moral ground’ to return the money raised in the offer. One should not declare the Adani Group as guilty yet. They have to be given a chance to respond. But Hindenburg report has reminded the world of what people had been whispering, but not openly speaking. For example, even in the recent past, a Fitch Group unit had flagged the group as “deeply leveraged”. Later, one sniggered, when the same firm quickly said it had discovered calculation errors in its own an Indian subsidiary of a MNC, and its accounts would be in order. Hence the time saved & cost incurred on DD was better off, to be spent in quicker turnaround. Whether it was a fact or myth, such was his magic on the investor street, until few days ago. Gautam Adani, the man whose ports-to-FMCG global empire is now in the midst of a violent tsunami, because of a single report raised by an outside-of-India entity, whose claim to fame has been short selling. In a capitalist world, short selling is absolutely agreeable. In fact, it has its merits too. The short seller Hindenburg’s report alleged fraud and other irregularities, just before the Rs 20,000 crore Adani FPO (Follow-on Public Offer). Before these allegations were made, this amount was seen as too small for Adani to lose sleep or shirt over. But then turn of events made the FPO go through, with its moment of truth of what each stakeholder thinks about Adani. Yet in the FPO, his own employees subscribed to only 55% of the shares earmarked for them. What made them stay away from their own company - which probably was aspirPhotograph by Subhabrata Das

46 | BW BUSINESSWORLD | 11 March 2023 report, but it did not change its investment recommendation. In India, very few stock broking firms do research on Adani firms. There is a need for greater scrutiny and transparency of firms which have high growth rate, and are in public markets. But stock markets are different. The anonymity of mass-trading and sentiment-based response for their perceptions is something that’s powerful against the influential companies and promoters. It includes those who invested, either with researched decision or with speculation or greed or simply FOMO or due to folklore of the ‘big man with biggest networks to make it happen’. In a crisis, no one is a friend. Markets also listen to any gossip or bravado stories. One has heard multiple theories about this crisis - a political hit job, a rival business house hit job, a political setup to keep a politician away from power, and so on. It is also evident that the Indian stock markets are interlinked to the vagaries of global economy, something we seem to be in denial. Business Counts Natu dharmopa samharam Adharma palasamhitam Tadeva phala nunveti Dharmasch dharma nasanaha (Verse 29 of Sarga 51 in Sunderakand, says that we cannot escape any of our unrighteous acts or deeds, even if one has done many other righteous acts or deeds. ) Nationalism does not cut ice. Nationalism is not a replacement for transparency. Patriotic fervour in a crisis management response is akin to patronising and insulting the investors. Business Performance & consistent data disclosures with highest governance standards is a basic investor ask. That’s what capitalism is about. Markets price these in, and also discount for lack of any of these attributes. Adani Enterprises’ revenue had grown over 75% in FY22, after three free or cheap. Think of it as an ‘I.O.U’ bond, with coupon rate and tenor not filled, and callable by the party holding the IOU, anytime in the future. But the point that’s still open is this - that the disclosures are still pending about the allegations. Roundabout answers, and threat of legal action don’t seem to have assuaged the retail investors perception and the confidence of the Indian Mutual funds - both of whom stayed away from the tepid years. Its net profit also fell. Its listed entities except for one, showed similar downward numbers in pretax FY22. For infrastructure companies that are valued at 300x - 600x earnings multiples, one would expect far better numbers. Moral Clothing Announcing the decision to withdraw from the FPO process and returning the subscription monies as “will not be morally correct” otherwise, was seen as an attempt to sound uprighteous. In fact, they lost the moral ground, right when they decided to even go ahead with the offer after the crash of their group stocks, basis the allegations made by Hindenburg Research. The market had even signalled it on Day 1, when the issue was subscribed only 1%, as the stock price bottomed below the floor price of the issue. They had to use their billionaire friends connections, either with or without nudge of common powerful friends, to get the issue subscribed. Irony was that supposedly one of his assistance-in-need came from the man whom he dethroned from India’s richest man tag. But any such investments generally don’t come FPO. The Dow Jones Sustainability Indices (DJSI) has removed the group scrip from its indices. Unless full clarity emerges, the non-Indian global participants might have a similar view. The group dollar bonds are already in distress zone, trading below 70 cents to the dollar. Banks will want more collateral to the loans. More financial institutions globally will start deeper Illustration by DINESH S BANDUNI COUNTERPOINT / THE ADANI FIASCO

11 March 2023 | BW BUSINESSWORLD | 47 ity to provide for minority protection, ability to bring digital framework into mainstream corporate disclosures. But compared to a US SEC, we still have long way to go in ability to be far more proactive, quick to check and prove market impunities. The ability of our multiple financial regulators to work on a common topic seems missing, as they operate in structural silos, even if they did have operational intent. Not all of our financial regulators have similar quality of market supervision, or even bench strength of expertise. But then, it is in a crisis of market confidence, that the regulators have to showcase their neutrality and mettle. What next ? “Bad companies are destroyed by crises; good companies survive them; great companies are improved by them.” — Andy Grove, Former CEO, Intel Adani has reportedly hired one of the top law firms to litigate in the US. It would be interesting in now the case pans out. The US courts give latitude to the parties to demand from the opponent, documentary evidence for their arguments. This would be interesting as to who all are made party to such a case. For an Indian company to fight this and clear its reputation would be a boost for its own image. Forget the Madoff riff between the short seller and the company. Can Adani emerge winner from this faceoff, but with trust and confidence of the investors that all is well (with) in his empire? Can the investors feel confident that he will build all that he has taken on? Can he complete the ports he is building, finish the highways he is building and operate the airports he has won or taken over? And many more, across his businesses. These questions, and many more, wait to be answered. Views are personal scrutiny into the group. Similar could be the regulators’ scrutiny in markets they operate in, outside of India. And, then, there are the latest allegations around Mr Vinod Advani. Short Selling is Legal Short selling is a legally allowed market activity. It is not that every short seller makes money. Short sellers generally help with liquidity, since for every short seller, there is a party on the other side of the transaction willing to pay the given price. Short sellers also help detect frauds, as their nose on the ground is effective than most regulators (as they don’t have sufficient resources and talent). Profit, as a motive is a good incentive, for short sellers to spend time and effort in seed-funding their research in assessing a short selling target. Forget Hindenburg for a moment, what about those hundreds or thousands of Indian It is essential to remember that the very formation of SEBI as a market supervisor, was right after Indian capital markets had its first large market scam. Even the word ‘scam’ became mainstream, only after that scandal. In fact, credit for capital markets development has to be given to SEBI for bringing in governance mechanisms and adopting technology into the industry, to remove or reduce any form of arbitrage. But then the larger question that hopefully begets an answer - why should the entire investor base pay a heavy price for the alleged misdeeds of a few companies? That’s where the promptness of the markets regulator should come in. Not as an afterthought. This is more an acid test for SEBI in its ability to handle large corporates. In 2022, it had to swallow bitter pill when the industry lobbied to change its own The markets regulator, for its independence and technological prowess around market intelligence, has been unusually silent, especially for the first phase of this plot. Now, the Supreme Court has been petitioned. Usually the stock exchanges, being the first line of regulatory marketdefence mechanism would have asked the company, in public, to respond to the allegations. They did not investors who have also shorted, but not been counted in this melee? The markets regulator, for its independence and technological prowess around market intelligence, has been unusually silent, especially for the first phase of this plot. Now, the Supreme Court has been petitioned. Usually the stock exchanges, being the first line of regulatory market-defence mechanism would have asked the company, in public, to respond to the allegations. They did not. regulation that mandated separation of chairperson and MD role for the top 500 listed companies. The industry lobby even openly called it ‘regulatory overreach’ in the presence of a senior minister at a public event. Our regulators have to work harder in building their organisation to be world class, proactive and responsive, as well as transparent themselves. In many instances, our regulatory standards are far ahead and better, than say a China, in corporate governance, abil-

50 | BW BUSINESSWORLD | 11 March 2023 N ALL THE NOISE AND FURY of the past two weeks post the Hindenburg bomb I felt it was best to let the froth of opinions – most of them political – subside before we could dispassionately look beyond the multivariate range of emotions which cloud the judgement necessary for an unbiased analysis of what is unarguably a very complex situation. To my mind there are five central issues to this saga. It would be best not to conflate entrepreneurial zeal and risk taking approach with fraud. I would, thus, group the pertinent issues under five heads: business model risk, capital efficiency, stock manipulation, governance (institutions and corporate) and crony capitalism. I will leave politics out of it though it is juicy enough to have warranted attention. Many of the points raised in the report are with respect to the risk perception of the company’s business model and its over dependence on high leverage. Though not uncommon for infrastructure companies, current ratios of below one are concerning from a risk perspective, but are in no way related to fraud. Declining operating margins (from 7% + to 3.6% ) accompanied by a significantly higher revenue growth ( 25% to 110% +) and declining capital efficiency (15% to 3%) exacerbate the potential risk posed by low current ratios, and indicate an urgent need for capital (preferably by equity and not debt). It is imminently possible that driving its exponential growth over the last few years is the combination of the low prices it quotes to consistently win projects over competition, and the high prices it pays in rapidly acquiring huge infrastructure assets on sale. Such a business model will necessarily impact financial strength unless the group demonstrates its ability to progressively raise larger amounts of capital and extend the payback period. This is key to its financial survival over a longer period of time. Such a business model could be deemed risky, but not The Surgical Strike on Adani I GUEST COLUMN QUESTIONS WILL LINGER ON TILL WE HAVE THE COLLECTIVE COURAGE TO HANDLE THE TRUTH Prabal Basu Roy