Mithun Sacheti of CaratLane joins the ranks of founders whose cash exits are setting new benchmarks for next-gen entrepreneurs GUIDE TO CREATE WEALTH www.businessworld.in I RNI NO. 39847/81 I 23 SEPTEMBER 2023 Rs 150 PLUS: INDIA’S TOP MARKETERS & G20 SUMMIT TAKEAWAYS
www.businessworld.in RNI NO. 39847/81 I 23 SEPTEMBER 2023 As marketing becomes pivotal not only in creating brand differentiation but also in delivering business outcomes, leaders are reimagining strategies without losing focus on fundamentals INSIDE: THE GREAT MARKETING RESET ABBEY THOMAS ADITYA BABBAR AJAY DANG AJAY KAKAR AKASH DEEP BATRA AKSHAY KAPOOR ALOK MAHAJAN AMAN GUPTA AMEDEO ARAGONA AMIT TIWARI AMRITA THAPAR ANINDITA VELURI ANISH VARGHESE ANJALI GUPTA ANKIT DESAI ANSHUL KHANNA ANUJA MISHRA ANURADHA SEHGAL ANURITA CHOPRA APARNA BHAWAL APARNA GIRIDHAR ARNAB ROY ARVIND SAXENA ASHA KHARGA ASHISH MISHRA ATIT MEHTA AVNEESH KHOSLA CHANDAN MUKHERJI CHANDRAMOHAN MEHRA DAMYANT SINGH KHANORIA DEBA GHOSHAL DEBABRATA MUKHERJEE DEEPAK SINHA DEEPALI NAAIR DILEN GANDHI GAURAV SINHA GEORGE KOVOOR GIRISH KALYANARAMAN GUNJAN KHETAN GUNJIT JAIN HARDEEP BRAR HARMAN DHILLON HARSHAVARDHAN CHAUHAAN HIMANSHU KHANNA IPSHITA CHOWDHURY JAYA JAMRANI JYOTI KUMAR BANSAL KARTHI MARSHAN KAVITA CHATURVEDI KAVITHA GANESAN KUNAL DUBEY MINAL SRIVASTAVA MUSTUFA ARSIWALLA NAARAYAN T.V. NEHA AHUJA NEHA BARJATYA NITIN SAINI POOJA BAID PRASENJIT BASU PRASHANT JAIN PUNEETH BEKAL RAHUL TALWAR RAJ RISHI SINGH RANJIVJIT SINGH RAVI DESAI RAVI SANTHANAM ROHIT BHASIN ROSHNI DAS S. PRASANNA RAI SAAKSHI VERMA MENON SAI NARAYAN SAIKOT DAS SAMEER GUPTA SAMEER SAXENA SAMEER SHETTY SANTOSH HEGDE SAURABH JAIN SHARAT VERMA SHASHANK SRIVASTAVA SHIVA KRISHNAMURTHY SHOMA NARAYANAN SHOUMYAN BISWAS SHUBHRANSHU SINGH SHUVADIP BANERJEE SHWETAL BASU SIDDHANT NARAYAN SRIRUP MITRA SUDHIR MALHOTRA SUJATHA V KUMAR SUMIT MATHUR SUNAY BHASIN SUNIL GADGIL SUNIL NARULA SUNITA BANGARD TUSHAR MALHOTRA UDIT MALHOTRA VARUN KANDHARI VINAY PANT VINEETH VISWAMBHARAN VIRAT KHULLAR ZOHER KAPUSWALA
ALLOCATION FUNDS MULTI ASSET DEBT EQUITY GOLD* GET THE ADVANTAGE OF A 3-IN-1 FUND GET THE ADVANTAGE OF A 3-IN-1 FUND 0923 Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Multi Asset Allocation Funds combine the advantages of equity, debt and gold* in a single scheme. Invest in them to diversify your portfolio and give your investments an opportunity to grow. Multi Asset Allocation Funds invest in at least 3 asset classes with a minimum of 10% in each. *They can take exposure to Exchange Traded Commodity Derivatives having Gold/Silver as underlying goods and such other goods as permitted by SEBI. Visit www.icicipruamc.com/note to know more about the process to complete a one-time Know Your Customer (KYC) requirement to invest in Mutual Funds. Investors should only deal with registered Mutual Funds, details of which can be verified on the SEBI website (www.sebi.gov.in/intermediaries.html). For any queries, complaints & grievance redressal, investors may reach out to the AMCs and / or Investor Relations Officers. Additionally, investors may also lodge complaints on https://scores.gov.in if they are unsatisfied with the resolutions given by AMCs. SCORES portal facilitates you to lodge your complaint online with SEBI and subsequently view its status. To know more, Contact your Mutual Fund Distributor | Visit: www.iciciprumf.com An Investor Education & Awareness Initiative
6 | BW BUSINESSWORLD | 23 September 2023 INDIA, AS A SHINING STAR in the global economy, has witnessed the rise of million-dollar, sustainable, and large-scale businesses. From far-sighted pioneers like Sanjeev Bhikchandani and Dr A. Velumani to contemporary titans like Binny Bansal and Mithun Sacheti, the journey of wealth creation has been diverse and dynamic. These entrepreneurs share a common goal: to forge unmatched, revenue-generating, and fundamentally sustainable Indian enterprises. As we traverse the timeline of Indian businesses and entrepreneurial leadership, it becomes clear that the strategies and approaches to business have evolved significantly, leaving us to ponder the future course for the next generation of entrepreneurs. In the last three years alone, wealth creation in India has been nothing short of spectacular. The mavericks of the business world have not only built thriving enterprises but have also set the stage for newer, bolder exits, be it through cash deals, as we saw recently with CaratLane, founded by Mithun Sacheti, or initial public offerings (IPOs). This evolving narrative presents a compelling blueprint, poised to transform India into a nation of entrepreneurs. As we look ahead, the future of India’s entrepreneurial landscape is set to be an exhilarating voyage, fuelled by innovation, vision, and an unwavering commitment to excellence. In this special edition, we not only celebrate the indomitable spirit of Indian entrepreneurship but also provide a platform for insights and perspectives from a diverse array of experts. Their invaluable opinions and analyses shed light on the ever-evolving landscape of wealth creation in India, offering guidance, clarity and foresight to both seasoned veterans and aspiring entrepreneurs. As we navigate through the stories of success, challenges and innovation, these expert voices add depth and wisdom to our exploration of India’s entrepreneurial journey, making this edition a well-rounded and comprehensive resource for all stakeholders in the world of business and wealth creation. This issue has an in-depth interview with the man of the moment, Mithun Sacheti, whose experience forms an interesting story and learning for young founders. Also in this edition, we have a special package on India’s top marketing leaders. These are the minds that are shaping much more than India’s marketing landscape. Marketing, a function that connects companies and products to consumers, is undergoing a transition fuelled not only by newer kinds of technology but also by how creativity itself is transforming the domain. For me, marketing means business. It has a direct impact on how a brand differentiates itself and creates the right experiences for its consumers. The decisions of these marketing leaders impact every function in the company. We hope the issue has some interesting takeaways for our readers. ANNURAG BATRA [email protected] NATION OF ENTERPRISERS EDITOR-IN-CHIEF’S NOTE
8 | B W BUSINESSWORLD | 23 September 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 Thompson Press India Limited. Editor : Annurag Batra. © Reproduction in whole or in part without written permission of the publisher is prohibited. All rights reserved. R.N.I.No. 39847/81 BW Businessworld Media Private Limited EDITORIAL OFFICES BW Businessworld Media Pvt. Ltd. 74-75, Scindia House, Connaught Place, New Delhi-110001 Phone: 9818063325 ADVERTISEMENT/CIRCULATION / SUBSCRIPTION ENQUIRIES BW Businessworld Media Pvt. Ltd. 74-75, Scindia House, Connaught Place, New Delhi-110001 Phone: 9818063325 SUBSCRIPTION SERVICE Vinod Kumar +91 9810961195, [email protected], [email protected] Subscription rates: ONE YEAR - Rs 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, Special Correspondent: Rajany Pradhan Correspondents: Abhishek Sharma, Arjun Yadav Jr. Correspondent: Nitesh Kumar, Himanshu Kumar Ojha, Shruti Tripathi, Sangeet Kumar Sanu DESK TEAM Deputy Editor: Mukul Rai Associate Editors: Madhumita Chakraborty; Smita Kulshreshth ART TEAM Art Directors: Dinesh Banduni, Shiv Kumar, Shivaji Sengupta Assistant Art Director: Rajinder Kumar Infographics & Data Visualiser: Arun Kumar Assistant Images Editor: Sanjay Jakhmola PHOTO TEAM Sr. Photo Researcher: Kamal Kumar, Photographer: Naval Kishore BW ONLINE: Assistant Editor: Poonam Singh VIDEO EDITORIAL TEAM Video Team: Anurag Giri, Pappu Kumar Singh, Sunny Kumar Paswan Sr. Cameraperson: Ratneshwar Kumar Singh BW APPLAUSE & EVERYTHING EXPERIENTIAL: Ruhail Amin, Pratyaksh Dutta BW AUTO WORLD: Utkarsh Agarwal BW DISRUPT: Resham Suhail BW EDUCATION: Upasana BW HEALTHCARE WORLD: Smridhi Sharma, Shivam Tyagi, Bhupendra Paintola BW HOTELIER: Editor: Saurabh Tankha Operations Controller: Ajith Kumar LR BW MARKETING WORLD: Soumya Sehgal, Reema Bhaduri BW PEOPLE: Sugandh Bahl, Krishnendra Joshi BW LEGAL WORLD: Kaustubh Mehta BW WELLBEING: Kavi Bhandari, Sanjana Deb BW SECURITY WORLD: Shilpa Chandel BW POLICE WORLD: Ujjawala Nayudu DIRECTOR: Prasar Sharma GROUP DIRECTOR – REVENUE: Aparna Sengupta GROUP SR. VICE PRESIDENT - STRATEGY, OPERATIONS & MARKETING Tanvie Ahuja ([email protected]) CEO, BW HEALTHCARE WORLD & BW WELLBEING WORLD: Harbinder Narula DIRECTOR, PROJECTS & COMMUNITIES: Talees Rizvi VICE PRESIDENT: Mohit Chopra VICE PRESIDENT STRATEGIC PROJECTS: Uday Laroia MARKETING & DESIGN TEAM: Kartikay Koomar, Mohd. Salman Ali, Moksha Khimasiya, Shweta Boyal, Alka Rawat, Arti Chhipa, Mradul Dwivedi, Himanshu Khulbe Asst. Manager - Design: Kuldeep Kumar EVENTS TEAM Tarun Ahuja, Devika Kundu Sengupta, Priyanshi Khandelwal, Preksha Jain, Akash Kumar Pandey, Mohd. Arshad Reza, Sneha Sinha, Ashish Kumar, Atul, Nandni Sharma, Mahek Surti, Reeti Gupta, Atul Joshi, Biren Singho, Neeraj Verma, Anupama Agrawal, Sushmita Kumari, Vaishali Vij, Anmol Kaur, Baani Chauhan, Shivam Popli, Prashant Kumar, Shweta Srivastava, Kuldeep Prajapati, Aditi Rawat SALES TEAM NORTH: Ravi Khatri, Anjeet Trivedi, Rajeev Chauhan, Amit Bhasin, Saurabh Jain, Somyajit Sengupta, Sajjad Mohammad, Agrata Nigam, WEST: Kiran Dedhia, Nilesh Argekar, Deepak Bhatt SOUTH: C S Rajaraman BW COMMUNITIES BUSINESS LEADS Priya Saraf (BW Education), Gareema Ahuja (BW Legal World), Chetan Mehra (BW Disrupt), Shruti Arora (BW Marketing World) CIRCULATION TEAM General Manager - Circulation, Subscription & Sales: Vinod Kumar ([email protected]) NORTH: Vijay Kumar Mishra, Mukhtadir Malik, Kamlesh Prasad WEST: Gorakshanath Sanap SOUTH: Sarvothama Nayak K EAST: Swarup Mondal Production Manager: Shiv Singh 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 24 23 SEPTEMBER 2023
fifffflffiflflfflffiffflff flffiffi fl fifffflffiffflfflffifffffflffi fflfl ffifflfl fifffflffiflflffiflffi fifffflffi flfflffl flfflfflffiflffl fl fifffflffifffffflfflffiffi fl flfflflffi fl fifffflffiffffflffifflflffi fifffflffi ffffffl fffl ffi fl fifffflffiffflfflflffiffi fflflffi fl fifffflffiffflffffffffi fl flffiff flfl fifffflffifffffflfflflffffi ffifflfl flfflflfl fifffflffiffffiflffffi fifffflffififlfiff fifffflfflffiflflffiffi U N D E R fifffflffiflffl PROF. RAMESH K. ARORA Chairman Management Development Academy Jaipur DR. MUKESH BATRA Founder & Chairperson Dr. Batra's Healthcare DR MOHIT GUPTA Professor of Cardiology GB Pant Hospital New Delhi PT. (DR.) RK SHARMA Remedial Astrology (Gem Therapy) SUZY SINGH Acclaimed Mental Health Therapist Grief Expert, International Author & Karma Scholar Suzyheals JC CHAUDHRY Founder & Chairman Chaudhry Nummero Pvt Ltd RACHNA CHHACHHI Cancer, Nutrition & Mental Health Therapist PAWAN GOYAL Astrologer ASHTAR TASHI Spiritual Diva & Soul Mentor Thought Leader, Joyologist Intuitive Healer, Author HARBINDER NARULA CEO, BW Wellbeingworld & BW Healthcareworld DR. ANNURAG BATRA Chairman & Editor-in-Chief BW Businessworld & Founder, exchange4media NOOR FATHIMA WARSIA Group Editorial Director BW Businessworld fflffl DR. MICKEY MEHTA Global Leading Holistic Health Guru & Corporate Life Coach
10 | B W BUSINESSWORLD | 23 September 2023 MAILBOX YOUR COMMENTS TALK BACK INSIDE: ZEPTO JOINS INDIA’S UNICORN CLUB +INDIA’S TOP EMERGING BUSINESSES www.businessworld.in RNI NO. 39847/81 I 09 SEPTEMBER 2023 Rs 150 INDIA’S PSU GOLD RUSH The story behind PM Modi’s cryptic clue to invest in PSU stocks and how India’s lithium discovery presents the next multi-bagger opportunity GAINER PSUs This refers to the editorial (“The Changing Face Of India’s PSUs”, BW, September 9 ). With multifold jumps in share prices, PSUs in defence, banking, and mining are among the leading gainers in the Indian public market landscape. Due to major appointments and a significant number of reshuffles, the financial health of PSUs has impressively improved by four to five times. For instance, HAL’s share price jumped to Rs 4,135 last month, up from around Rs 500 in 2020. The data speaks for itself: the rising interest of foreign institutional investors over the past few years. The reshuffling of the management team has resulted in increased confidence in PSUs. Additionally, the change in perception regarding the work culture of government undertakings has driven this trend. As far as public banks are concerned, the decrease in NPAs to Rs 4.28 lakh crore has paved a clear path to a stable banking ecosystem in the years to come. SWETA KALE, EMAIL AI: NOT A MAGICAL WAND This refers to the editorial (“ Human Eccentricities,” BW, September 9). The analogy between the human mind and Artificial Intelligence (AI) is a very interesting thought. While it’s great that we are utilising the powers of AI to the fullest potential, it is equally important to have a sense of awareness that AI is not a magical solution to all our problems, that we created AI and it is our intelligence that gave birth to it. Letting it overpower us is not a solution and never should be considered as a way to replace humans. The topic is in line with the ongoing global debates around the drawbacks of continuous advancement in the realm of AI and serves as a food for thought. Would love to read more such write-ups. PULKIT DAS, 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
For Partnership Opportunities: Amit Bhasin, +91 98116 17970, [email protected] | Nilesh Argekar, +91 98676 10986, [email protected] JOIN US. EMBARK ON THE JOURNEY TO CELEBRATE INDIAN HOSPITALITY EXCELLENCE! Friday-Saturday, October 20-21, 2023 Venue: Pullman, Aerocity New Delhi Don’t miss out on this opportunity to showcase your brand and services. Partner with India’s Premier Hospitality Summit & Awards. & SUMMIT 2023 7 POWERED BY: POWERED BY PARTNER PLATINUM HOSPITALITY PARTNER GOLD HOSPITALITY PARTNER SILVER HOSPITALITY PARTNER HOST PARTNER KNOWLEDGE PARTNER
12 | BW BUSINESSWORLD | 23 September 2023 14 Jottings Road to prosperity; One Earth One Family One Future; AI power play; Hot chase for Cipla, and more 16 Columns Minhaz Merchant (p. 16);Vikas Singh (p. 18);Srinath Sridharan (p. 20); Krishan Kalra (p. 22);Amit Tiwari (p. 24);Srinath Sridharan & Steve Correa (p. 26); Amit Kapoor, Shivani Kowadkar & Vanshica Kant (p. 28);Kiran Karnik (p.30); Srinath Sridharan (p. 68) 32 Purple Patch The Indian paint industry is projected to reach Rs 1 lakh crore in value over the next 4-5 years. What is driving this growth? 38 Chinese Chequers An analysis of how Gautam Adani’s growing muscle to finance and execute critical infrastructure projects such as ports and airports hurts China’s interest 42 The Great Consensus How the success of the G20 summit in New Delhi has raised India’s profile among the comity of nations and added sheen to PM Modi’s leadership 44 Wealth Creation Mantra The link between entrepreneurship and wealth creation in India, and how the success stories of India’s entrepreneurs is becoming a wellspring of inspiration for aspiring innovators and business leaders 52 Glorious Exit The story of CaratLane founder Mithun Sacheti and how he recently sold his remaining stake to Titan for a whopping Rs 4,621 crore 66 Lessons in Investing An advisory for investors who are looking to invest in stocks of IT majors impressed by the billion-dollar deals that they have struck in recent months NEXT-GEN WEALTH CREATORS Cover design by SHIV KUMAR Generating Wealth A look at the phenomenon of private wealth creation in India and how it is being fuelled by astounding entrepreneurship, unparalleled business acumen and overall economic expansion 48 CONTENTS VOLUME 42, ISSUE 24 23 SEPTEMBER 2023
23 September 2023 | B W BUSINESSWORLD | 13 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 134 70 Marketing Reset How a marketing reset is afoot reimagining the future of creativity, consumer experiences, the changing role of purpose and the reality ofpersonalisation MARKETER PROFILES 78 Hardeep Brar 79 Ranjivjit Singh 80 Virat Khullar 81 Shashank Srivastava 82 Shubhranshu Singh 83 Abbey Thomas 84 Ipshita Chowdhury 84 Anuja Mishra 85 Sumit Mathur 86 Sai Narayan 88 Rahul Talwar 89 Ashish Mishra 89 Puneeth Bekal 90 Akash Deep Batra 90 Aparna Bhawal 91 Aman Gupta 92 Damyant Singh Khanoria 93 Sunil Narula 93 Aditya Babbar 94 Pooja Baid 106 Zoher Kapuswala 107 Amedeo Aragona 107 Gunjan Khetan 108 Vineeth Viswambharan 108 Tushar Malhotra 110 Raj Rishi Singh 111 Himanshu Khanna 112 Amit Tiwari 113 Amrita Thapar 113 Arvind Saxena 114 Roshni Das 115 Aparna Giridhar 115 Karthi Marshan 116 Deepali Naair 117 Sunita Bangard 118 Ajay Kakar 119 Debabrata Mukherjee 120 Festival of Marketing Snapshots from the BW Festival of Marketing that saw industry leaders reflect on how marketing is playing a pivotal role in creating differentiation and future readiness for brands and businesses 130 Last Word Deepak Chhabria, Executive Chairman, Finolex Cables on the company’s growth strategy, the opportunities ahead, and more 74India’s Top Marketers How India’s top 100 marketers list is made of 25 per cent women and includes leaders who have contributed to and continue to shape the marketing & business landscape as well as younger leaders who are building future-ready brands 94 Prashant Jain 96 Ajay Dang 97 Atit Mehta 97 Jyoti Kumar Bansal 98 Chandan Mukherji 99 Nitin Saini 100 Saakshi Verma Menon 101 Gunjit Jain 102 Saurabh Jain 104 Varun Kandhari 105 S. Prasanna Rai 106 Ankit Desai Photograph by Vectordreamsmachine
14 | BW BUSINESSWORLD | 23 September 2023 JOTTINGS ROAD TO PROSPERITY DURING THE annual Group of 20 Leaders’ S u m m i t i n N e w Delhi, Prime Minister Narendra Modi unveiled an ambitious project that enthused various global leaders, including US President Joe Biden. This ground-breaking initiative, officially known as the IndiaMiddle East-Europe Economic Corridor, marks a significant milestone in international infrastructure development. President Biden emphasised its importance and forecasted that the term “economic corridor” w ill become increasingl y prevalent in the coming decade. The project’s vision extends beyond physical connectivity, encompassing digital integration and trade facilitation throughout the Eurasian subcontinent. At its core, the economic corridor aims to establish a modern-day Spice Route, revitalising historical trade routes and fostering economic collaboration among nations. Notably, it is positioned as a substantial ideological alternative to China’s Belt and Road Initiative (BRI), a move that underscores the strategic significance of this initiative. The corridor’s blueprint involves the construction o f a r a i l w a y n e t w o r k traversing the Arabian P e n i n s u l a , w i t h t h e potential to interconnect w i t h m a r i t i m e r o u t e s linking India and Europe. T h i s m u l t i - m o d a l transportation system p r o m i s e s t o e n h a n c e connectivity, facilitate trade, and even explore a v e n u e s f o r e n e r g y cooperation, particularly in green hydrogen. This initiative is part of the Partnership for Global Infrastructure Investment (PGII), a collaborative endeavour involving G7 nations, aimed at financing infrastructure projects in developing countries. The PGII serves as a counterbalance to the BRI, reflecting the global community’s growing interest in alternative development pathways. Prime Minister Modi’s announcement highlights the global support and cooperation this project has garnered. As it takes shape, the economic corridor holds the promise of transforming regional dynamics, ushering in a new era of connectivity, and reshaping global trade and infrastructure investment paradigms . —Ashish Sinha REPORTS THAT the Hamied family plan to sell their 33.47 per cent promoter’s stake in the pharmaceutical major Cipla has set the pharmaceutical industry aflutter. What began as a potential private equity takeover by either Hong Kongbased BPEA-EQT or American investment firm Blackstone has turned into a regular tug-ofwar between home-grown drug companies, Torrent Pharma and Dr Reddy’s Laboratories. At this juncture Torrent, Blackstone and Dr Reddy’s are all in the race for the biggest stake sale in the history of the Indian pharmaceutical industry, which could go as high as $7.3 billion. The market bets on the Samir Mehta-led pharmaceutical Hot Chase for Cipla company Torrent Pharma, since the buyout could complement Torrent’s domestic portfolios, especially in therapies such as respiratory, anti-infectives, urology and antivirals, where Cipla is the market leader. Dr. Reddy’s Laboratories meanwhile, has a big acute therapy portfolio spanning gastro, respiratory and cardiac that also rank in the top four therapy areas for Cipla. The deal could scale up Torrent’s presence in the US market by six times, while Dr Reddy’s and Cipla have sizable overlaps in the US business and pipeline. The deal involves a 33.5 per cent stake buyout and a subsequent 26 per cent open offer. A potent formulation in the pharma industry! – Shivam Tyagi Photograph by PIB
23 September 2023 | B W BUSINESSWORLD | 15 DELHI HAS HOSTED many international events through its history, but the murmurs and chants of the G20 conference will hang in the air much longer than most can imagine. The mood for the congregation under India’s presidency was set by Prime Minister Narendra Modi’s opinion piece in leading Indian newspapers titled, ‘Good Morning Humanity’ on 7 September. His message that India’s “G20 presidency strives to bridge divides, dismantle barriers and sow seeds of collaboration that nourish a world where unity prevails over discord, shared destiny eclipses isolation” also encapsulated the theme of the conference: One Earth One Family One Future. It was a theme that the world, grappling helplessly with the wrath of nature through climate change events like wildfires, floods and storms understood, as it had when a deadly virus demanded concerted efforts of nations to develop vaccines. “But beyond its role as a global growth engine, India is uniquely positioned to bring countries together,” predicted ONE EARTH ONE FAMILY ONE FUTURE Kristalina Georgieva in her blog on the International Monetary Fund (IMF) website in February. The G20 theme and its nuances have been the guiding spirit of G20 conferences through the year. “In a world facing multiple challenges and rising geopolitical tensions, this leadership is critical – and beautifully captured in the theme of India’s G20 presidency: One Earth, One Family, One Future,” she wrote. As Georgieva’s blog explained so lucidly, the theme sends out a message that growth and progress must encompass all and especially the least fortunate. Perhaps, a beginning has been made. — Madhumita Chakraborty APPARENTLY, we have not heard the last of the space wars among technology giants. According to a Wall Street Journal report, Meta has set its sights on a bold and ambitious goal – to develop a new artificial intelligence (AI) system that could rival OpenAI’s most advanced models. In launching Llama 2, an open-source AI language model, Meta has shown its determination to compete head-on with industry giants like OpenAI and Google. Its aspiration to outshine competitors and empower businesses with sophisticated AI technologies is worth tracking. The work at Meta signifies a strategic pivot towards becoming a crucial player in shaping the future of AI applications, a much-needed departure from metaverse-related products. The decision to distribute Llama 2 through Microsoft’s Azure cloud services further solidifies Meta’s commitment to this endeavour. However, it’s crucial to acknowledge that achieving this vision will be no small feat. Developing a large language model that surpasses existing capabilities requires extensive research, computational resources and time. The timeline for realising the latest goal, reportedly slated for early 2024, underscores the complexity of the task at hand. While the road ahead is challenging, Meta’s determination to push boundaries and foster innovation is a positive sign for the future of AI-driven applications and services. — Rohit Chintapali AI Power Play Photograph by PIB Photograph by BiancoBlue
16 | B W BUSINESSWORLD | 23 September 2023 NDIA MAY BE THE FIFTH largest economy in the world,” mocked one well-known economist, “but we are one of the poorest nations on earth based on our per capita income of $2,650.” The economist was right. But he didn’t explain why historically India’s per capita income has been so low. Nor did he reveal that, according to the International Monetary Fund (IMF), per capita income measured by purchasing power parity (PPP) is a more accurate measure for a nation’s well-being than market exchange dollar rates. Consider first the history. At Independence in 1947, according to ourworldindata.org, India had a per capita income of $60. That has risen in 2023 to $2,650. This is a rise of 45x in 76 years at a compound annual growth rate (CAGR) of five per cent. During 190 years of British colonial rule, as Dr Shashi Tharoor, Professor Utsa Patnaik and others have pointed out, in books and academic journals, Indian per capita income stagnated. In 1700, an average Englishman’s per capita income was roughly similar to the per capita income of the average Indian. British colonialism impoverished India and enriched Britain. The level of poverty in India in 1947 was 80 per cent, literacy 12 per cent and life expectancy 32 years. It has taken three-quarters of a century to bring poverty down to less than 15 per cent, the literacy rate up to 79 per cent and life expectancy to 70 years. It is still a work in progress. The Nehru government’s socialist policies ensured that while India prospered in relative terms to the British colonial period, per capita income grew far more slowly than in other newly independent countries like Singapore, Malaysia and Taiwan. It was only after economic liberalisation in 1991 that India’s per capita income began to grow at its fastest pace in over 250 years. Per capita income of $2,650 in 2023 is still abysmal. But few remember that as late as 1990 Indian per capita income was $304. Over 40 years of Nehruvian socialist economic policy had pulled India out of the British abyss but not by enough. Poverty levels remained over 40 per cent. Turn now to the second part of the economist’s comment quoted earlier which failed to mention India’s per capita income measured by PPP. Purchasing Power Matters I Minhaz Merchant COLUMN MINHAZ MERCHANT The writer is the biographer of Rajiv Gandhi and Aditya Birla and author of The New Clash of Civilizations (Rupa 2014). He is founder of Sterling Newspapers Pvt Ltd., which was acquired by the Indian Express Group Photograph by Indiapicturebudget
23 September 2023 | B W BUSINESSWORLD | 17 in London than in Lahore. “Indeed, because wages tend to be lower in poorer countries, and services are often relatively labour intensive, the price of a haircut in Lima is likely to be cheaper than in New York even when the cost of making tradable goods, such as machinery, is the same in both countries. Any analysis that fails to take into account these differences in the prices of non-traded goods across countries will underestimate the purchasing power of consumers in emerging market and developing economies and, consequently, their overall welfare. For this reason, PPP is generally regarded as a better measure of overall well-being.” So what is India’s per capita income (PPP) in 2023? According to the IMF’s World Economic Outlook published in April 2023, India’s per capita income (PPP) is $9,070. Because living costs are much lower in India than in the US, the IMF gives each country a PPP multiplier to accurately adjust economic well-being by taking local factors into account. For low-cost India the multiple is just over 3x. For middleincome China it is under 2x. As a result, GDP figures measured by PPP change significantly. According to the IMF’s latest World Economic Outlook, India’s GDP (PPP) is $13,030. China’s GDP (PPP) is $33,070. None of this suggests India should be pleased that the economic gap between China and India has fallen from five times to a little over two times when per capita income at dollar exchange rates is adjusted for PPP. It simply means that India must redouble efforts to deepen economic reforms. Poverty levels – still unconscionably high – must be reduced as quickly as possible. The key is turbocharging economic reforms in investment and infrastructure. Government capex is smartly up in 2023-24. Private investment too is increasing as bank credit offtake surges. Despite muted private investments so far, the corporate sector is bullish. As Business Standard reported: “A dipstick survey of 22 CEOs across India shows that over 86 per cent of the respondents have invested in the past one year and they plan to do more in the coming months. Several CEOs said the government’s plan to invest Rs 10 trillion in new roads, highways, and railways would result in new orders for their companies. As a result, companies are expanding capacity. The Reserve Bank of India’s recent statement also indicated a rise in capex as project loans to the private sector by banks showed fresh sanctions at 2.2 per cent of loans in FY23 (versus 1.3 per cent in FY22).” To become a fully developed country by 2047, the centenary of Indian Independence, as Prime Minister Narendra Modi has targeted, will require deep reforms and strong resolve. Why PPP? This is what Tim Callen, former division chief in the IMF’s Middle East and Central Asia Department, wrote in a briefing paper: “PPP exchange rates are relatively stable over time. By contrast, market rates are more volatile, and using them could produce quite large swings in aggregate measures of growth even when growth rates in individual countries are stable. Another drawback of market-based rates is that they are relevant only for internationally traded goods. Non-traded goods and services tend to be cheaper in low-income than in high-income countries. A haircut in New York is more expensive than in Dhaka; the price of a taxi ride of the same distance is higher in Paris than in Jakarta; and a ticket to a cricket game costs more According to the IMF’s latest World Economic Outlook, India’s GDP (PPP) is $13,030. China’s GDP (PPP) is $33,070. None of this suggests India should be pleased that the economic gap between China and India has fallen from five times to a little over two times when per capita income at dollar exchange rates is adjusted for PPP Photograph by Arena Creative
18 | B W BUSINESSWORLD | 23 September 2023 I N THE VAST TAPESTRY of nations, India’s journey toward selfreliance stands out, marked by its vibrant diversity and intricate complexity. Beyond the celebratory fervour of Independence Day, the nation must both celebrate and embrace self-reliance and self-sufficiency across several platforms. India is at the crossroads where the pursuit of self-reliance takes on a more profound dimension. The transition from symbolism to substance reflects a crucial juncture. The fine balance of growth and inclusion could redefine India’s trajectory. Foundations of Progress: Growth, Demography, and a Thriving Democracy : India’s self-reliance and rapid growth is pivoted on the large consuming class, a diversified economy, and an enabling and robust demography. One cannot overlook the strategic significance of India’s diversified economy nurtured by the consuming class. It is an asset that buffers it against the shocks that might otherwise disrupt specific sectors. It stands as a bulwark of selfsufficiency, offering a buffer against external vagaries too. The ever-growing league of consumBy Vikas Singh The author is an economist and columnist ers power domestic industries toward high growth, and ‘shield’ the economy from global economic vagaries. It triggers investment and acts as a magnet to attract global capital. The presence of a skilled workforce across sectors bolsters self-sufficiency. Demography Supports India’s Vision to ‘Serve’ the Globe: Peering into India’s journey toward self-reliance, the visage of industrial growth looms large. Ingeniously designed policies, particularly of the last 10 years have systematically chipped away at the nation’s reliance on imported essentials, simultaneously fostering indigenous industries and creating a fertile ground for several unicorns. It is a testament to India’s talent that has swiftly embraced novel technologies, fashioning homegrown solutions. This prowess has vaulted India onto the global stage as a thriving IT and software services hub. Demography supports India’s vision to ‘serve’ the globe, and a significant export driver, raking in foreign exchange and generating jobs. Similarly, investment across the Tech value chain has transformed the landscape and attracted a new breed of tech-preneurs. India has the potential to emerge as the knowledge capital of the eastern hemisphere if it is able to enhance educational outcomes. The symphony of self-reliance echoes in the much-neglected agricultural sector too, ensuring food security for a burgeoning population, equally providing livelihood opportunities to a third of the population. However, the sector is under stress and needs revival. Among the buttresses of India’s march toward self-reliance, political stability and a robust infrastructure occupy the forefront. A steady political climate encourages and nurtures growth; attracts investments. India’s strides, particularly of the last 10 years in infrastructure development GROWTH-LED SELF-RELIANCE, BUT INCLUSION STILL A CHALLENGE COLUMN Photograph by Alisa24
23 September 2023 | B W BUSINESSWORLD | 19 a safety net for the much-ignored urban poor. Labour reforms is core to growth and employment and needs a holistic framework. Similarly, formalising the economy must be accelerated. Though skewed against the MSMEs, it yields results across multiple dimensions in the long run. Infrastructure has linked the country, particularly rural and urban India. Yet, it is still a ‘work in process’. Trajectory Next: N a v i g a t i n g t h e Growth-Equity Conundrum: As India stands at the brink of transformation, the clarion call for bolder reforms reverberates. Economic reforms have consistently sparked initial growth spurts. The key determinant of sustained progress lies in the ability of policymakers to accelerate and uphold these reforms. The focal point of a society must be to strike a symphonic balance between economic growth, societal inclusivity, and ecological sustainability. We are a decade away from this goal. Prioritising access to economic dignity for the marginalised and prosperity for the majority must not be just a policy but a moral imperative. The third largest economy (in purchasing power parity) must find the means and dig up the resources to create a platform for universal health and quality education. Unfurling the Flag of Shared Prosperity: The Prime Minister has the political capital to bring in those radical reforms. Similarly his government has the administrative capacity to ensure economic vibrancy that harmonises with universal prosperity. India must commemorate its hundred years of independence as not only a developed economy but also as a nation with a thriving populace, characterised by prosperity and well-being. has enhanced productivity, catalysed efficiency, and powered competitiveness. This is a long-term story, and we are at the beginning of the curve. Our self-reliance is also reflected in our ability to influence the global narrative. The 30 million diaspora are India’s global ‘ambassadors’, and an integral part of India’s ‘soft’ diplomacy. They are a vital bridge to access knowledge, expertise, resources, and markets for India. Path to Prosperity is Strewn with Obstacles: Despite the trailblazing journey towards self-reliance, India grapples with persistent barriers. Poverty’s scourge, the spectre of unemployment, access to inexpensive and quality healthcare, and higher education remain formidable barricades. Achieving holistic self-reliance demands long-haul dedication across several domains. India’s growth is limited only by the vision of policymakers. The evolving canvas presents challenges. The practice of trading ‘gratitude for votes,’ entailing promises of freebies and non-merit subsidies, have become increasingly prevalent and dangerously close to the precipice of undermining democracy. Unfortunately, they are gaining significant traction. This trend misallocates resources, disenfranchises the intended beneficiaries, and strays from ethical moorings. The freebie culture raises economic concerns and challenges fiscal stability. Self-reliance demands continuous investment in critical and societal levers like health, education, and inclusivity. It is not beyond us to create and implement a robust framework that enables and nurtures micro, small, and medium-sized enterprises. Their revival is pivotal to employment. Similarly, India’s demographic advantage must be harnessed by investing in education and skill. Rationalising GST rates can further expedite growth, while infrastructure and rural development serve as long-term growth multipliers. The next chapter of reforms should script a saga of agrarian metamorphosis, ushering in radical and holistic reforms that secure the future of the farming community. The agri reforms must provide for the farmers and also go beyond. They should focus on rural development. Similarly, India needs to weave in India is at the crossroads where the pursuit of self-reliance takes on a more profound dimension. The transition from symbolism to substance reflects a crucial juncture. The fine balance of growth and inclusion could redefine India’s trajectory Photograph by Srinivasansri5560
20 | B W BUSINESSWORLD | 23 September 2023 N A WORLD THAT cherishes individual freedoms and the right to express oneself, it is essential to recognise that freedom of expression should not come at the cost of civility. While the right to voice opinions and engage in open discourse is a cornerstone of democratic societies, it is equally important to uphold the values of respect, empathy, and responsible communication. The erosion of civility, the prevalence of short tempers, and the perception of unrestricted freedom without accountability have had profound implications for our collective outlook. Human behaviour plays a crucial role in shaping the fabric of society, and as we navigate these challenging times, it is essential to reflect on the impact of our actions and foster a culture of respect, empathy, and accountability. As social beings, we are part of a collective fabric that thrives on shared values and mutual respect. Societal norms act as guardrails, ensuring that freedom of expression does not devolve into a free-for-all, but instead exists within a framework of civility and responsible conduct. Civility, characterised by courtesy, respect, and consideration for others, forms the foundation of harmonious coexistence. It is the glue that holds diverse communities together, enabling individuals with differing perspectives to engage in meaningful dialogue and cooperation. The allure of perceived freedom without accountability has seeped into the collective consciousness, fueling a dangerous sense of entitlement. Individuals may believe that they can act without consequence, leading to a disregard for the potential impact of their words and actions on others. This attitude perpetuates a cycle of negativity, where empathy and understanding are replaced by hostility and division. The consequences of such behaviour extend beyond interpersonal relationships, as societal outlook is shaped by the prevailing norms and values of its members. When incivility becomes the norm, it erodes trust, hampers cooperation, and fractures the social fabric. It hinders progress, stifles innovation, and sows the seeds of discontent and polarisation. The rise of digital and social media has further eroded the foundations of civil discourse. Behind the veil of anonymity, individuals feel emboldened to launch personal attacks, spew hate speech, and engage in inflammatory behaviour, all of which contribute to an increasingly toxic online environment. Respect for differing viewpoints was the cornerstone of these exchanges, allowing ideologies to coexist without breeding personal hatred or disrespect. Sadly, in the era of online interactions, this cherished tradition has often given way to vitriolic comments and a pervasive culture of “us vs. them.” The freedom of choice, which forms the bedrock of any democratic society, demands that individuals have the autonomy to express their opinions and make decisions without fear of retribution. In the past, engaging in debates meant embracing the art of disagreeing with respect. Diverse ideoloI Civility in the 21st Century – a Life Skill? (A)muse & Musings By Srinath Sridharan
23 September 2023 | B W BUSINESSWORLD | 21 throat competition, has contributed to a culture where civility takes a back seat, and personal well-being is often sacrificed in the race for achievements. The materialistic undertones of contemporary living have played a significant role in the diminishing civility within Indian society. As the pursuit of wealth, status, and possessions takes precedence, individuals might prioritise their own interests over the well-being of others. This shift towards materialism fosters an environment where empathy and compassion are often overshadowed by a “me-first” mentality. The focus on accumulating possessions and status symbols can inadvertently breed a sense of entitlement and superiority, leading to a disregard for the feelings and opinions of others. Additionally, the lack of self-awareness further compounds the erosion of civility. The fast-paced lifestyle and societal emphasis on achievement can leave individuals disconnected from their own emotions and the impact of their actions on others. It also hampers the ability to empathise with others, as individuals become engrossed in their own struggles and ambitions without considering the challenges faced by those around them. In this milieu, it’s imperative to acknowledge that the erosion of civility is not an isolated phenomenon. To address this issue, fostering a sense of community, emphasising emotional intelligence, and encouraging mindful living are crucial steps. By redefining success beyond material achievements and promoting holistic well-being, we can hope to restore civility and create a more harmonious society where individual freedoms are exercised responsibly, and respectful communication prevails. By promoting empathy, respect, and open-mindedness, we can reclaim the art of civilised debates, fostering an environment where differences in ideology are met with understanding rather than personal animosity. It is crucial for us to recognise that freedom of choice should not be synonymous with the freedom to harm others. The writer is an author, policy researcher and corporate advisor The allure of perceived freedom without accountability has seeped into the collective consciousness, fueling a dangerous sense of entitlement. Individuals may believe that they can act without consequence, leading to a disregard for the potential impact of their words and actions on others gies and viewpoints were valued, and the differences between individuals did not equate to personal disrespect or animosity. The consequences of this departure from civil discourse are manifold. In the workplace, for example, where collaboration and teamwork are essential, the toxic online behaviour often manifests in real-life interactions, leading to decreased productivity, strained relationships, and a toxic work environment. The same applies to our personal lives, where online animosity can strain friendships and family bonds, further isolating individuals and eroding the support networks that are crucial for well-being. Moreover, the impact on mental health cannot be understated. The constant barrage of negativity, vitriol, and personal attacks takes a toll on individuals, leading to increased stress, anxiety, and even depression. The basic act of engaging with others becomes fraught with the fear of being attacked or humiliated, discouraging open expression and hindering the free flow of ideas. In the context of modern living in India, the erosion of civility has been exacerbated by the stress and intense competition that permeate various aspects of life. The pursuit of success, driven by materialistic aspirations and the desire for upward mobility, has led to a downward spiral in our interactions. The pressure to excel in personal, professional and social spheres often leaves individuals with little time for self-awareness and reflection. This frenetic pace of life, combined with cutPhotograph by Vectorium
22 | B W BUSINESSWORLD | 23 September 2023 N 1993, INDUSTRIALIST couple Gagan and Neelu Sharma were deeply moved seeing children on the streets of Gurgaon with no place to go for learning or to play in. They started Saksham (self-reliant) in a small house where all kids were welcome; they were also being taught basic hygiene like baths. People liked the idea and joined hands to help and the team of two soon became a community with common passion and purpose. Within 10 years, Saksham moved to spacious premises, with adjoining sprawling lawns, in Sushant Lok. Their first employee Ram Kumar is nostalgic about the humble beginnings and – 30 years later – continues to cook a delicious hot lunch for students and staff. In 2004, their first batch of five appeared for NIOS Level B (Grade 5) examination conducted under the SNS Foundation, as Saksham was not yet accredited. They had classes till Grade 5 and there were about 100 students. Initially, parents in the slums needed persuasion to send their children but the incentives of a free education, buses and lunch won them over. The aim was to ensure that all 5th grade pass-outs get admission in government schools. Difficulty in finding Hindi medium schools made Saksham change to English. The first few years were tough but soon several volunteers from the neighbourhood came to teach in English. Ripples grew and more students enrolled because of the standard of teaching, and especially the lure of learning the English language struck a chord with the parents. Funds, English medium instruction and sustaining parents’ interest were of course, challenges for many years. Now 30 years later Saksham is a wellrun registered charitable organisation committed to providing education – academic and vocational – to underprivileged children. There are 260 students in the age group of four to 17 across classes one to 10. It is accredited with NIOS for Level B and C with16 regular teachers and 30 dedicated volunteers. The school is free of cost. The premises have doubled and now house computer and science labs, musicdance-theatre, art and physical training platforms, a good library and basic medical care; with free books/stationery and a midday meal. Besides soft skilling and grooming the children, games, physical fitness, music and dance are part of the curriculum. Equips Students for Life The school endeavours to equip students for life after school through vocational programmes like painting, paper-bag making, carpentry, and tailoring. Social awareness – sustainability, reforesting, traffic management – find an important place in the teachings. Assemblies, baithaks and bridge classes are organised to help students become better citizens. Children actively participate in competitive sports, Olympiads and science exhibitions and often bring laurels. Saksham has supported several students to continue education in board-affiliated schools and vocational courses, who have seamlessly integrated into the new environment. All this was possible with the generous help of about 50 regular donors – individuals, corporates and institutes. Some students have become successful professionals and entrepreneurs. The school collaborates with social groups, other NGOs and corporates on learning programmes. Saksham has truly transformed many lives. In keeping with the constant need to upgrade, the school is open to newer methods which has led to blending in many holistic ideas including digital learning. Multiple interventions are planned for teachers’ training to motivate them and upgrade their skills. The founder is often asked how the place is thriving despite immense challenges. Besides gratitude to the volunteers and patrons, she always says, “There is someone up there watching us”! I Inclusivity By Krishan Kalra Column Now 30 years later Saksham is a well-run registered charitable organisation committed to providing education – academic and vocational – to underprivileged children The author is Member, National Advisory Board, Sarthak and President, National Abilympic Association of India (NAAI) Compassion in Action – Saksham Bal Vikas Sanstha
23 September 2023 | B W BUSINESSWORLD | 23 MARKETING AND ADVERTISING AmitScope N 2023, CUSTOMER lifetime value (CLV) will be an essential marketing metric. A CLV is the monetary benefit to your firm from having that customer as a client. A CLV helps businesses form strategies to gain new customers and retain the prevailing ones while upholding profit margins. This KPI is critical for determining where to put your marketing dollars to get the best possible return, as well as for appreciating the lifetime value of your consumers. THE CLV DATA CALCULATIONS When determining CLV, it is important to take into account both the past and the future. l The customer lifetime value (CLV) calculated by a historical CLV model is based solely on past transactions and does not attempt to forecast future behaviour. l Using information like how recently a consumer has made a purchase and demographics (such as age, education level, and country), a predictive CLV model can estimate the future worth of a customer. While it’s impossible to guarantee a profit from any one consumer, a company’s resources would be better spent on more valuable, engaged customers than on attempting to keep one-time customers as repeat buyers. However, it’s important to also factor in the I cost of marketing and other customer acquisition, engagement, and retention activities when calculating customer lifetime value (CLV). This insight is crucial for firms, as it allows them to look into the future and make wellinformed marketing choices. STRATEGIES THAT CAN HELP BOOST CLV Below are a few approaches that are likely to enhance overall CLV by fostering favourable, long-term relationships between a business and its customers. u Upselling and cross-selling Cross-selling is a method of upselling additional products to existing consumers alongside their first purchase, like when one sees “customers also bought” or “you might like” recommendations on an online retailer’s website. When upselling, more money is charged for an upgrade or added service, such as when a website requires a certain amount to be spent before free shipping is offered or when an airline charges more for passengers to choose their seats. Both methods raise the overall volume of orders, which in turn increases both revenue and CLV. v Creating a Lasting Impression Customer retention and lifetime value (CLV) can be significantly improved by providing omnichannel assistance, investing in CX training and customer care strategies for your staff, streamlining the customer journey, and implementing other measures to create a memorable experience. w Developing a Customer Loyalty Scheme It’s essential to incentivise repeat business from current customers by providing them with a straightforward loyalty programme that’s easy to comprehend and use. Customers who use the Starbucks app and enroll in the rewards programme, for instance, receive additional perks and enjoy a more streamlined experience. x Establishing a Community Having customers feel like they are more than just a number being herded through a sales funnel increases the likelihood that they will continue to engage with your business in the future. Engage customers in conversation via social media. Inspire them to form online communities around your brand by sharing feedback, photos, comments, tips, branded hashtags, and more. Ultimately, businesses that take the time to assess their customers’ CLV can more accurately forecast future sales and use limited marketing resources for optimal return. The author is Global Head, Marketing Demand Center, TCS CLV – The Metric that Matters in Marketing By Amit Tiwari
26 | B W BUSINESSWORLD | 23 September 2023 ture of shame, where individuals hesitate to share their stories of struggle, hindering their healing and denying others the reassurance that they are not alone. It is time to shed light on our failures and successes, creating a culture of empathy, understanding, and shared resilience. Regardless of their past, every person possesses the capacity for growth, change, and redemption. By offering second chances to those who have stumbled, we challenge the notion that our accomplishments solely determine our worth. We cultivate a community that values the human spirit and acknowledges the potential for growth and the ‘I’ T IS EARLY 1980. One of the authors had been rejected for admission to a renowned school in Kolkata. On enquiring with the principal, he mentioned that the overall marks in Hindi could have been higher based on the selection tests, and he feared that the author may not pass the board exams. The author protested and insisted he would do well and pass the exam. The principal relented, offering a second choice. A couple of months later, the author could join the school (as indeed, he had passed) the board exam. He had been given a second chance. In our world that relentlessly celebrates success, it is quite pretty to overlook the transformative potential of second chances. Society has become fixated and almost obsessed with achievement, often placing an immense, at times impossible, burden on individuals to succeed at all costs. We idolise those who have triumphed, basking in their glory while disregarding the journey that brought them there. One is inattentive to the untold stories of failure, the tales of resilience and redemption that shape the very fabric of human existence. It is time to delve into the profound significance of second chances and explore why everyone deserves and needs them. Success, that elusive pinnacle of accomplishment, is the driving force behind countless aspirations. However, the pressure to succeed can suffocate, leaving no room for vulnerability or mistakes. These societal expectations shackle individuals, forcing them to conceal their failures, as if such experiences are shameful secrets best kept hidden. Yet, by refusing to acknowledge and embrace our failures, we deny ourselves the opportunity for growth, learning, and, ultimately, a chance at redemption. In our fascination with success stories, we often neglect to engage in candid conversations about the setbacks and failures that preceded them. This skewed narrative perpetuates a culWhy the World Needs More Second Chances PEOPLE TALK By Srinath Sridharan & Steve Correa
23 September 2023 | B W BUSINESSWORLD | 27 Yet, the discourse around success often dismisses the trials and tribulations that pave the road to achievement. We find ourselves captivated by tales of triumph but rarely engage in open conversations about the setbacks and failures that preceded them. This narrative imbalance perpetuates a culture of shame, where individuals hesitate to share their stories of struggle, hindering their healing and denying others the reassurance that they are not alone. Society is enriched when we acknowledge that second chances are not mere concessions but transformative opportunities. Regardless of their past, each person has the capacity for growth, change, and redemption. When we offer second chances to those who have stumbled, we dismantle the notion that our accomplishments solely determine our worth. We cultivate a community that values the human spirit, one that acknowledges the capacity for growth and the beauty of personal evolution. India, with its burgeoning population and competitive job market, has created a highpressure environment where constant success is expected. The social fabric encourages individuals to project an image of unwavering success, leaving little room for vulnerability or mistakes. The fear of failure becomes ingrained, forcing individuals to conceal their setbacks as if they were shameful secrets. However, by denying ourselves and others the chance to acknowledge and learn from failures, we miss invaluable opportunities for growth, wisdom, and ultimately, redemption. Second chances grant us the freedom to learn from our mistakes, adapt, and emerge stronger than before. They provide an opportunity to redefine our paths, reshape our narratives, and demonstrate that our worth extends far beyond our missteps. When we extend compassion and forgiveness to ourselves and others, we foster an environment where personal growth flourishes, paving the way for a more resilient and empathetic society. Lance Armstrong, a famous cyclist and a cancer survivor, said, “If you ever get a second chance for something, you’ve got to go all the way”. beauty of personal evolution. By doing so, we empower individuals to embrace their second chances and pave the way for a more compassionate corporate landscape. History is replete with stories of celebrities who seized upon second chances offered to them. Within the folds of every failure lies a wealth of wisdom waiting to be discovered. Second chances grant us the freedom to learn from our mistakes, adapt, and emerge stronger than before. They offer us an opportunity to redefine our paths, to reshape our narratives, and to prove that our worth extends far beyond the confines of our missteps. When we grow compassion and forgiveness to ourselves and others, we foster an environment where personal growth flourishes, ultimately leading to a more resilient and compassionate society. Second chances also pave the way for innovation and creativity. The history of human progress is punctuated by countless stories of visionaries who faced initial setbacks but later triumphed. From renowned inventors to celebrated artists, many of the world’s greatest minds encountered failure before achieving greatness. These individuals, unyielding in their pursuit of their dreams, remind us that second chances can unlock hidden potential and inspire innovation that transforms our world. Srinath Sridharan is an author, policy researcher and corporate advisor Steve Correa is an Executive Coach, OD Consultant and author From renowned inventors to celebrated artists, many of the world’s greatest minds encountered failure before achieving greatness. These individuals, unyielding in their pursuit of their dreams, remind us that second chances can unlock hidden potential and inspire innovation that transforms our world Photograph by Jcomp
28 | B W BUSINESSWORLD | 23 September 2023 NCLUSIVE, SUSTAINABLE and resilient growth’ has emerged as an important theme in recent times. Policy circles are abuzz with discussions on the pathways to achieve this growth. At a time when we are faced with multiple crises including poverty, lack of progress towards SDGs, food and energy insecurity, debt distress, climate change, poverty and inequality, there is a need to bring about major reforms to tackle each of these challenges. Substantial and impactive reforms require considerable resources and a robust and efficient international development finance architecture. Multilateral Development Banks (MDBs) play an important role in this system, providing long-term resources for the world to address emerging challenges and attain growth in a manner that leaves no one behind. The MDBs have addressed development finance needs of the world since decades. They have helped countries progress towards their development goals by providing financial resources, technical assistance, and policy advice. However, in an evolving geopolitical landscape and a dynamic external context where the nature of challenges keeps changing, the actions required to address them must be altered accordingly. Multilateral institutions must adapt constantly to cater to the needs of the day and age. Adapting their approach and working methods to changing needs is the key for institutions to remain relevant. The issues that the world is faced with now are not just multifaceted, but also transboundary in nature. This has made collective action a prerequisite to addressing them and multilateral institutions can facilitate this action through more effective international cooperation. Today, MDBs function in a world that is widely different from even a couple of decades ago. The discussions on how MDBs can be more impactful must focus on the need to revisit their ARTHSASTRA Amit Kapoor, Shivani Kowadkar & Vanshica Kant Clockwise : Shivani Kowadkar, Amit Kapoor & Vanshica Kant I approach and working methods. It is widely known that the most vulnerable countries and many developing nations are faced with huge financing gaps to support investments in development. The UN SDG Stimulus Plan (2023) notes the dire need for official development assistance (ODA) to match the rising needs and demands from the Covid-19 crisis. The development needs of countries particularly those of the Global South are growing. Given the impact of climate change and increased indebtedness, it Towards Stronger Multilateral Development Banks
23 September 2023 | B W BUSINESSWORLD | 29 has become crucial to mobilise resources and plug financing gaps. Mobilising climate finance to attain goals set out in the Paris Agreement needs the world to increase support to developing nations beyond $100 billion per year. The international financial architecture needs to be fit for purpose and equitable. It is estimated that the world requires additional spending of about $3 trillion per year by 2030 which includes $1.8 trillion of additional investments in climate action and $1.2 trillion in additional spending for achieving other SDGs. In order for MDBs to fill these gaps, strengthening them is of essence. The G20 Finance Ministers and Central Bank Governors Meeting in 2023 has made major strides in driving forward the agenda of strengthening the MDBs which was a key priority area during India’s G20 Presidency. It has been emphasised that MDBs should work towards evolving their vision, operational approaches and financial capacities to be in a better position for dealing with contemporary global challenges. The world is witnessing a range of efforts being taken to transform the functioning of MDBs to boost their potential. Recently, an Independent Expert Group appointed under India’s G20 Presidency, put forth a ‘Triple Agenda’ to bring about much needed changes in the MDB ecosystem. The triple agenda constitutes a few key elements including the goal of tackling extreme poverty and enhancing shared prosperity, tripling sustainable lending levels by 2030 and facilitating greater support for the MDB agenda through a third funding mechanism. Traditionally, battling poverty and spurring economic growth in developing countries have formed the core mandate of MDBs. However, tackling climate change through targeted action such as investment in clean technology can no longer be seen as a domain separate from the goal of boosting growth and prosperity. The intertwined nature of economic development and sustainable and green transitions brings to attention the need to expand the vision and mission of MDBs. This calls for a major shift in the scale of MDBs’ activities as well as the incorporation of new activities. There is huge scope for MDBs to create an environment in developing nations that helps integrate the development and climate agendas. They are institutions that have a robust experience of engaging with governments as well as private sector entities in emerging economies. They can leverage this experience in providing low-cost and long maturity financing to speed up progress towards SDGs and attain solutions to a wide range of development challenges. Yet another major area of discussion for bolstering MDBs is increasing their engagement with the private sector. While they have engaged with private entities in the past, there is room for more fruitful and effective collaboration that can attract private capital in a way that aids the intended transformation in nature and scale of investments in developing nations. Moreover, in recent years, focus was brought on the need to reform capital adequacy frameworks of MDBs to enable them to utilise their resources efficiently and maximise development impact. This year, the G20 has made considerable progress on this front as it has endorsed the ‘G20 Roadmap for Implementing the Recommendations of the G20 Independent Review of MDBs Capital Adequacy Frameworks (CAFs)’ and given a significant push to CAF implementation. We are faced with a complex and dynamic setting that poses multidimensional challenges that increasingly warrant shared solutions. At the core of our efforts to foster international cooperation lies the need to transform our MDBs’ ecosystem and in turn, bring about a positive paradigm shift in the international development finance architecture. The G20 Finance Ministers and Central Bank Governors Meeting in 2023 has made major strides in driving forward the agenda of strengthening the MDBs which was a key priority area during India’s G20 Presidency Amit Kapoor is Chair, Institute for Competitiveness and lecturer, USATMC, Stanford University. Shivani Kowadkar is a researcher at the Institute for Competitiveness. Vanschica Kant is consultant with Asian Development Bank Photograph by MEA/PIB
30 | B W BUSINESSWORLD | 26 August 2023 FLIGHT DEPARTING without boarding a pre-booked VVIP passenger certainly makes the headlines. A recent news item reported that the passenger, the Governor of a State, apparently reached the airport two minutes after its scheduled departure time. By then, not only had the aircraft doors been shut, but it had already pushed back to head towards the runway. The Governor – more likely his staff – were livid that the aircraft did not wait for him (reminiscent of King Canute and the sea waves) and was not recalled. The outcome was an abject “regret” and probe by the airline, and suspension of its Station Manager and possibly two others. In another state, an ambulance carrying a sick patient was stopped to make way for the Chief Minister’s convoy, despite fervent pleas by the patient’s relatives. Again, probably the work of minions and allpowerful “security”, rather than the CM. Though not common, there are reports of similar incidents from time to time. Most politicians love ostentatious power. They gain gratification, even as they lose respect, but they have their own priorities, views, and ways of dealing with these issues. However, there are lessons for corporate professionals too from such incidents. The wielding of power for quesA tionable purposes is fraught with danger. A powerful person may receive profuse apologies and, in further abuse of his position, even have dismissed those involved. Such actions, though, have repercussions. Misuse of position erodes moral authority and, with it, the ability to motivate and lead. CEOs with untrammelled authority would do well to keep this in mind. How they wield the power bestowed on them, perceptions of their team about what is right, following commonly agreed procedures (and, obviously, laws) and supporting those who do so: these are amongst the important factors which define leadership qualities. THEY LEAD BY MOTIVATION Flouting rules or demanding that others do so is a sure recipe for personal and organisational disaster. Cases of CEOs forcing their staff to commit financial irregularities or coercing a junior into a sexual relationship are not unheard of, and the same for bullying or using abusive language. All these are known to inevitably end up in disaster – sometimes, for the whole organisation. The best CEOs understand that the power of their position is to be used sparingly, for organisational or general good, and not for personal vanity or benefit. They lead by facilitation, motivation, and teamwork, rather than by command; by respect, rather than authority; they carry a big stick but speak softly. The responsibility of the CEO extends beyond this, to supporting and protecting his team against unfair and vindictive action from other authorities. One wonders what his employees think of the CEO who ordered suspension of employees for doing their job: following procedures, rules and systems that exist for smooth and safe functioning in an organisation responsible for hundreds of lives every day. Whatever the outside pressure, this story (assuming it was correctly reported) reflects poorly on the organisation’s leadership and rubs off on corporate India as a whole. Do industry associations have any role here as conscience keepers or are they too timid to speak up? In refreshing contrast, to end on a positive note about VVIPs, a Central Minister was recently reported to have bicycled to AIIMS (Delhi), without any security paraphernalia, on a surprise visit to check on its functioning. If true, a great example not only for other VVIPs, but – metaphorically – for CEOs too. Power of Position By Kiran Karnik The author loves to think in tongue-in-cheek ways, with no maliciousness or offence intended. At other times, he is a public policy analyst and author. His latest book is Decisive Decade: India 2030 Gazelle or Hippo (Rupa, 2021) COLUMN n KIRAN’S KONTRARIAN KORNER n
For Speaking and partnership opportunity: Sanjana Deb, 8910172015 [email protected] CEO, BW Wellbeingworld & BW Healthcareworld BRAHMA KUMARI SHIVANI ANKUR WARIKOO SISTER JAYANTI DR. HANSAJI YONGENDRA LAVLEEN KAUR LUKE COUTINHO DR. KIRAN BEDI GAURAV BHAGAT SHANTANU NAIDU SHWETAMBARI SHETTY NIDHI MOHAN KAMAL MUKESH BANSAL SUHANI SHAH VIKAS BAGARIA CHEF HARPAL SINGH SOKHI VIJAY THAKKAR SANJEEV KAPOOR GURUDEV SRI SRI RAVI SHANKAR GAURANGA DAS
In a bull-run for the past two years, the Indian paint industry, currently valued at Rs 70,0000 crore, is projected to expand its market size to Rs 1 lakh crore over the next 4-5 years. What is driving this growth? By Ashish Sinha HE INDIAN PAINTS industry seems to have hit a purple patch. The good run that kicked off in the third quarter of fiscal year 2022, thanks to a 20 per cent increase in prices, has held on. FY2023 looked even better with an 18 per cent spike in revenue, helped by higher realisations due to a 6 per cent rise in prices during the fiscal. The uptrend is very much intact and expected to continue during FY24 and even beyond. In fact, the industry expects its revenues to grow 10-12 per cent in FY2024. T SHADES OF SUCCESS IN DEPTH PAINT INDUSTRY 32 | B W BUSINESSWORLD | 23 September 2023 Photograph by Jag CZ
Experts say strong volume growth, coupled with stabilising input prices linked to crude oil, will likely help maintain operating margins at around 15-16 per cent in FY24, much like in FY2023. The sector’s success is tied to the fortunes of the five major paint companies namely Asian Paints, Berger Paints, Kansai Nerolac Paints, Akzo Nobel, and Indigo Paints, which together represent nearly 90 per cent of the organised sector’s revenue, totalling around Rs 65,000 crore, out of a total estimated market size of Rs 70,000 crore. Experts as well as the industry players see the total market size expanding to Rs 1 lakh crore over the next five years or so, thanks to the growth of existing participants, new entrants, increased investments, rising demand, and market expansion. Along with substantial growth, the industry may also witness mergers and acquisitions. Despite aggressive capex by paint majors as well as the entry of new players, the sector has benefitted from the nearly debt-free balance sheets of leading companies, which help support their credit risk profiles. The industry consists primarily of the decorative paint segment, which accounts for almost 80 per cent of the market share; the remainder is dedicated to industrial paints. Pushing Growth Building on two years of strong growth, Asian Paints, the market leader, achieved net sales of Rs 30,000 crore in FY23. Over the past four years, the company has consistently achieved volume growth between 15 per cent and 20 per cent. As of FY23, it had nearly 1.5 lakh retail outlets, with an additional 6,000 to 10,000 retail points added in Q1FY24. Amit Syngle, MD and CEO of Asian Paints emphasised their commitment to maintaining a presence in every geographic region, including Tier-3 and Tier-4 towns. True to this commitment, the company has allocated Rs 8,750 crore for exAkzo, 7.3% Indigo, 2.1% Kansai, 14.5% Asian Paints, 57.9% Berger, 18.2% AMIT SYNGLE, MD & CEO, Asian Paints n Market leader n Crossed Rs 30K cr in net sales in FY23 n Over 1.6 lakh retail points n To invest Rs 8.7K cr over the next 3 years [ PAINT INDUSTRY [ 23 September 2023 | B W BUSINESSWORLD | 33
34 | B W BUSINESSWORLD | 23 September 2023 pansion and growth over the next three years. Outlining the strategic rationale behind these investments, Syngle says, “Our investments will enable us to meet the growing demand in the paint industry while achieving sustainable cost advantages through critical backward integration. This will be complemented by strategic acquisitions to expand our home décor offerings, thereby reinforcing our leadership position in the core business.” The need for capacity expansion has arisen in view of the rapid growth of the Indian paint industry — it is projected to reach Rs 1 lakh crore by 2028. Asian Paints aims to be well-prepared to meet this surge in demand by expanding its manufacturing capacity through both greenfield and brownfield expansions. Brownfield expansion is underway at existing decorative paint plants located at Kasna, Khandala, Ankleshwar and Mysuru, with a capital expenditure of approximately Rs 3,400 crore supporting the growth plan for the next three years. Collectively, this expansion will add 5.40 lakh kilo litres per annum to the company’s existing capacity. Furthermore, the company plans to establish a new water-based paint manufacturing facility with a capacity of 4 lakh kilo litres per annum at an estimated investment of Rs 2,000 crore. This facility is expected to become operational three years after land acquisition. Berger Paints, a Kolkata-based competitor, achieved a significant milestone by crossing Rs 10,000 crore in revenues in FY23. Abhijit Roy, MD and CEO, Berger Paints, attributes this success to a well-rounded performance across ANUJ SETHI, Senior Director, CRISIL Ratings “Decorative paints are likely to see revenue increase of 11-12 per cent in fiscal 2024, driven by increasing renovation/ construction activity and greater preference for branded products by the growing middle-class segment” decorative, protection, auto, and industries divisions. Notably, the protection division crossed the Rs 1,000-crore mark in FY23, and strategic entries into key accounts within the industry and auto segments bode well for their longterm growth prospects. “Berger paints outperformed the competition and was the fastest-growing paint major in FY 23 in the Indian paint industry,” Roy told BW Businessworld. “Crossing the Rs 10,000-crore milestone fills us with great pride and presents us with a scale to make the next leap ahead,” he added. Kansai Nerolac, another prominent player in the sector with more than a century of history, saw its revenues grow more than 18 per cent to Rs 7,543 crore during FY23. Growth Drivers What will drive future growth? Arunava Paul, Associate Director, CareEdge Ratings points to the real estate sector IN DEPTH PAINT INDUSTRY Photograph by Igor Vetushko
23 September 2023 | B W BUSINESSWORLD | 35 ABHIJIT ROY, MD and CEO, Berger Paints n 2nd largest player n Crossed Rs 10K cr in revenues in FY23 n Has over 60,000 retail points n To invest Rs 2.7K cr over the next 5 years to grow 10-12 per cent mainly on the back of higher volumes in the absence of any price increase. “Here too, growth in the decorative segment — which accounts for 75-80 per cent of the organised paints market — is expected to be higher at 11-12 per cent compared to the industrial segment,” Sethi adds. The growth in the industrial segment, however, is expected to be around 8-9 per cent on the back of steady rise in demand for automobiles while revival in demand from non-auto segment will depend on overall economic conditions, says Sethi. Ajay Thakur, Research Analyst, Anand Rathi Institutional Equities points to the positive impact on the industry due to a time lag between Diwali and the monsoon. “Industry expects a strong festive season demand given that Diwali this year falls closer to November, compared to October last year. Generally, a gap between the monsoon ARUNAVA PAUL, Associate Dir., CareEdge Ratings “The demand from repainting, which accounts for 80 per cent of total decorative paint demand, is also expected to pick up due to factors such as a growing population, an increase in rental homes and growth in income levels of consumers” and Diwali gives more time for consumers to prepare and plan for Diwali,” says Thakur. “The repainting cycle has reduced as well. The consumers are getting their houses repainted at shorter intervals,” says Paul of CareEdge, citing it as one of the factors driving growth. Karan Chechi, Director at TechSci Research says the paint manufacturers are increasingly venturing into the rural markets, recognising the untapped potential for growth in these regions. “Escalating rural incomes and aspirations for improved living conditions have spurred paint consumption in rural India,” says Chechi. Acquisitions & Competition In the last few years, the industry has seen a spate of acquisitions in the paint and related industries. Astral has entered the paint industry via the acquisition of Gem Paints in Karnataka, while Indigo has strengthened its presence via acquisition of Hi-Build Coatings in south India and Apple Chemie in the waterproofing segment. JK Cement acquired Acro Paints in north India while Kansai and Berger acquired Perma and STP, respectively, to strengthen their waterproofing business. However, the market leader, Asian that accounts for about 70 per cent of the total demand for paint. “The demand from real estate is expected to be robust in FY24. The demand from repainting, which accounts for 80 per cent of total decorative paint demand, is also expected to pick up due to factors such as a growing population, an increase in rental homes and growth in income levels of consumers,” says Paul. New construction accounts for 20 per cent of the demand for decorative paints, Paul adds. Anuj Sethi, Senior Director, CRISIL Ratings says the demand for paint normally grows at 1.6x-2x of GDP. “Decorative paints are likely to see a revenue growth of 11-12 per cent in fiscal 2024, driven by increasing renovation/ construction activity and greater preference for branded products from the growing middle-class segment.” Revenue for FY24, as per Sethi, is expected
36 | B W BUSINESSWORLD | 23 September 2023 Paints, acquired companies in kitchen, bath and electrical segments as it changed its strategy from ‘share of wall’ to ‘share of space’. Sector watchers do not rule out mergers/acquisitions between established players going forward if they continue to lose market share. Can Akzo Nobel be one such player of interest for the market leaders? Only time will tell. A recent research report by ICICI Securities says: “With multiple players (Grasim, JSW, JK, Astral, Pidilite) entering the paints business, we believe the (somewhat) oligopolistic structure of the paint industry will likely change to a perfect competition structure. It could eventually hurt the industry’s profit pool, in our opinion (as observed in FY22).” As a result, the existing and new players are likely to incur a total capex of around Rs 12,000 crore till FY24 against nearly Rs 7,000 crore that was incurred in the four fiscals through 2022. “With new players expected to add nearly one-third of total existing capacity (~4.2 billion litres) by fiscal 2025 end, competition will intensify,” says a senior analyst from CRISIL. But here is the upside. The top five players have a combined annual capacity of 4.22 billion litre as of FY23- end. The industry plans a Rs 20,000- 22,000 crore capex over the next 3-4 years, with Grasim Industries and Asian Paints investing Rs 10,000 crore and Rs 8,750 crore, respectively. This 20 per cent capacity increase will heighten competition and squeeze margins for leading players in the long run. Besides competition, the paint industry’s profitability hinges on raw material prices, as nearly one-third of raw materials are imported. In FY24, a strong dollar-is another industry concern. Yet, despite all this, the sector anticipates sustained growth. [email protected]; @Ashish_BW KARAN CHECHI, Director, TechSci Research “The paint manufacturers are increasingly venturing into the rural markets, recognising the untapped potential for growth in these regions. Escalating rural incomes and aspirations for improved living conditions have spurred paint consumption” Recent Acquisitions Hi-Build Coatings by Indigo Gem Paints by Astral Acro Paints by JK Cement Perma by Kansai STP by Berger Apple Chemie by Indigo IN DEPTH PAINT INDUSTRY Photograph by Subbotina
23 September 2023 | B W BUSINESSWORLD | 37 IN CONVERSATION I ntrCity, India’s premier intercity mobility platform, offers convenient and affordable travel solutions via two distinct brands, RailYatri and IntrCity SmartBus. In an exclusive conversation with BW Businessworld, MANISH RATHI, Co-founder and CEO, IntrCity SmartBus talks about IntrCity’s journey and much more Can you please share about IntrCity’s journey and impact? Manish Rathi: IntrCity is India’s premier inter-city mobility platform that caters to budget travellers. IntrCity operates under two distinct brands: RailYatri, launched in 2013, and IntrCity SmartBus, introduced in 2019. Both products offer convenient and affordable travel solutions for individuals moving between cities in India. IntrCity’s RailYatri brand aimed to streamline train travel and eliminate the hassle of waiting lists. However, to ensure seamless journeys, IntrCity introduced IntrCity SmartBus. The brand offers well-equipped buses and reliable ticketing services on 630+ routes, providing safe and standardised travel options for long-distance journeys. This strategic choice undeniably proved beneficial as it presented a viable option “INTRCITY IS CHANGING TRAVEL EXPERIENCES FOR BUDGET TRAVELLERS IN INDIA” able, reliable, and technology-driven travel experience. The brand’s operating system includes a suite of applications, namely the Consumer Platform, Crew App, Operator Dashboard & IOT-based Fleet Analytics. It provides a consumer IntrCity app for real-time tracking, ETA of destinations, pre-order meals, facility to book special seats for passengers travelling with infants, plus-size individuals, or pregnant ladies. Wi-Fienabled lounges at boarding locations and trained “SmartBus Captains”. The brand also has a Command Centre that creates real-time bus feeds, driving speeds, and CCTV footage 24X7. How has the brand solved t h e p r o b l e m s o f t h e consumers? MR:IntrCity SmartBus addresses several consumer problems in the realm of intercity mobility. One of the significant challenges is the connectivity between Tier II - Tier III towns with big metros by providing a reliable, safe, and comfortable mode of transport for passengers. While trains have limited supply and often face capacity constraints, buses offer expandable options with a wider network of highways. IntrCity SmartBus offers a solution to these problems. Leveraging the power of IoT fleet analytics, each vehicle’s performance can be monitored in real-time, facilitating data-driven insights for optimal performance and to construct a network of “connected buses” for seamless operations. What are the benefits for bus operators enabled on IntrCity SmartBus ? MR:IntrCity SmartBus collaborates with bus operators to offer travellers a secure, timely, and streamlined travel experience. IntrCity takes charge of the technology, customer experience, demand generation, and overall operational excellence to transform regular buses into a SmartBus. Operators partnering with IntrCity SmartBus can avail numerous benefits, including competitive pricing, exclusive AMC packages, and insurance options. IntrCity SmartBus has established collaborations with 50+ operators, with a remarkable fleet of 250+ buses operating as part of IntrCity’s esteemed SmartBus network. alongside trains. Ever since its inception, the popularity of IntrCity SmartBus has soared to new heights. It recently witnessed an astounding 573 per cent surge in pre-Covid revenues for the fiscal year 2022-2023. It has emerged as the preferred choice for 2 million passengers spanning across 14 states. Operating at a remarkable capacity of 1.2 billion passenger-kilometres, IntrCity SmartBus has achieved an impressive average occupancy rate of 91 per cent. What are the products and services being offered under IntrCity? MR:IntrCity SmartBus operates on an asset-less model, aimed to provide a comfort-
PERSPECTIVE The Modern Shylock Gautam Adani has assumed a central role in India’s growing might to counter China’s tyranny of economic dominance through strategic business deals around the world. Adani’s growing muscle to finance and execute critical infrastructure projects such as ports and airports hurts China’s interest GEORGE SOROS & THE CHINA ANGLE BEHIND ADANI HIT JOB G EORGE SOROS IS SHYLOCK (c.1600) reborn. The Bard’s play The Merchant of Venice described Shylock as a Venetian Jew loan shark who would lend money by setting the borrowers’ ‘pound of flesh’ as a security deposit. The moment the bankrupt borrower defaulted on loan installments, Shylock would call for the deposit – his pound of flesh. A wily financial market speculator that he is, Soros, a Hungarian Jew, has mastered the art of extracting his ‘pound of flesh’ while hiding behind the mask of a global philanthropist. The NGOs funded by Soros often pick-up fights with states or governments, to expose their weakness or manufacture perceptions that could weaken investor confidence in the economy – the right kind of opportunity for the billionaire philanthropist and his elite cronies like the Rockefeller’s and Rothschild’s of the world use fully to their advantage by speculating on a given country’s misfortune. Bigger misfortunes generate large profits. Be it the toppling of a central bank or submerging countries in a deep currency crisis, Soros has notoriously thrived By PALAK SHAH Photograph by Sanjay Sakaria 38 | B W BUSINESSWORLD | 23 September 2023
CRP), funded by Soros-backed Open Society Foundation, Rockefeller Fund, and erstwhile CIA-backed Ford Foundation, launched the Hindenburg 2.0 attack on the Adani Group. While one of India’s largest conglomerates is under the scrutiny of national investigative agencies, media, government, courts, and regulatory authorities, Soros and his associates are running roughshod with their ‘short India’ game plan. In the given circumstances, Adani, India’s second richest man, is a soft target for those interested in vitiating public opinion against the Narendra Modi government. There is little surprise that PM Modi’s opponents in India will keep the Adani issue burning up till the final day of India’s 2024 general elections. While Hindenburg confessed to short selling of Adani linked non-exchange traded derivative instruments, which is considered illegal trade as per Indian laws, SEBI has not been able to exercise its jurisdiction on overseas selling in structured products that triggered a historic equity rout in India. Soros-backed entities struck Adani again early in September, just before the world’s top leaders gathered in New Delhi for the G20 summit. on short-selling operations and guerilla warfare in the financial markets. The NGOs he funds are believed by many to be linked to political upheavals and chaos across the globe. Many fingers were pointed towards Soros when he rejoiced at the well-timed attack by Hindenburg Research on Indian billionaire Gautam Adani in January this year, ahead of the group’s mega (over $3 billion) followon public offer. Soros then boldly confessed publicly that the “Hindenburg attack on Adani will weaken Prime Minister Narendra Modi’s hold on India and lead to the revival of democracy” – referring, probably, to his own version of democracy that he’d like to apply to rapidly emerging countries outside the US. Profits are an assured derivative in the game. India’s stock market regulator, the Securities and Exchange Board of India (SEBI) has found massive short selling in Adani shares by 12 entities in the country ahead of the publication of the Hindenburg report. While Hindenburg confessed to short selling of Adani linked non-exchange traded derivative instruments, which is considered illegal trade as per Indian laws, SEBI has not been able to exercise its jurisdiction on overseas selling in structured products that triggered a historic equity rout in India. Soros-backed entities struck Adani again early in September, just before the world’s top leaders gathered in New Delhi for the G20 summit. An NGO called the Organized Crime and Corruption Reporting Project (OCBack-to-back: Gautam Adani (L), George Soros(R) Photo courtesy: World Economic Forum/Sebastian Derungs 23 September 2023 | B W BUSINESSWORLD | 39
40 | B W BUSINESSWORLD | 23 September 2023 The China Angle India’s enemy is China’s friend. India’s foreign policy experts believe that Soros is backed by China in his game to attack the Adani Group, whose founder Gautam Adani is considered a close ally of PM Modi. Adani’s rise as India’s richest man, before Hindenburg triggered a severe crash in share prices of his group companies, largely coincided with Modi’s tenure as the chief minister of India’s richest state, Gujarat. Now, Adani has assumed a central role in India’s growing might to counter China’s tyranny of economic dominance through strategic business deals around the world. Adani’s growing muscle to finance and execute critical infrastructure projects such as ports and airports in countries like Sri Lanka, Israel, Myanmar, and potentially Greece, big-ticket coal mining projects in Australia, various infrastructure undertakings in the African region, hurts China’s interest. Adani “stole” a few projects from under the nose of President Xi Jinping, where China was actively bidding for them. In June 2019, Israel had signed a 25-year contract with the Chinese port management company called Shanghai International Port Group (SIPG) for the building and operation of the Haifa Port Terminal, which is strategically located in the Mediterranean Sea and is important for trade in Europe. In 2022, Israel awarded the tender for the privatisation of the original Haifa Port (separate from but located next to the new, Chinese-operated Haifa Bayport Terminal) to the Adani group despite competing Chinese bids for the project. It was India’s biggest strategic victory against China. In January, when the Hindenburg report was making news in India, Gautam Adani was in Israel meeting PM Benjamin Netanyahu for final touches to his port deal. Likewise in Sri Lanka, where China had entered as the largest port operator nearly a decade ago, Adani announced a multimillion-dollar investment in Colombo Port’s Western Container Terminal in November 2022. The 35-year-long rights of Adani to build-operate-transfer the port is the “largest” foreign investment ever in Sri Lanka’s port history. Ports are increasingly viewed as strategic assets and Sri Lanka adds to India’s policy of investing in such assets like it has done in Chabahar in Iran and Sohar Port in Oman. In Sri Lanka, India now has the advantage of monitoring China’s activity when its submarine docks in Colombo. (Such an incident in 2014 had raised security concerns in India). In Egypt, where China has established a 7.34 sq km industrial estate in the Suez Canal Economic Zone, India may get a dedicated industrial estate in the same zone. It will help Indian companies expand investments in Egypt and use the Arab Republic as a hub to tap the markets, not only in West Asia and North Africa but also in Europe. The list of such strategic moves by India in recent years is long and the Adani Group is at the forefront of some. Against India’s growing global footsteps, Covid-19 has altered the balance of power and equations in global politics. Not all countries are now attracted to China as before, as the story of its ‘debt trap’ stood fully exposed in Sri Lanka and other African countries. China’s spy ring in Israel, the US, and Canada and their ability to fuel local riots, upheaval too was laid bare on various occasions in the last couple of years. In this scenario, China and other global powers see Prime Minister Narendra Modi’s vaccine diplomacy and India’s growing influence as a threat. Naturally, Adani and other corporate houses in India are on the hit list and Photograph by Prim Discovery PERSPECTIVE The Modern Shylock
23 September 2023 | B W BUSINESSWORLD | 41 Soros is extracting his “pound of flesh.” China’s Links to Soros Soros’ role as the primary financier of Left-Wing causes globally is no longer a secret. It only makes him a natural ally of China. Don’t go by his criticism of Xi recently, that is just for the gallery, say foreign affairs experts. Soros’ links to China’s top spy agency, the Ministry of State Security (MSS) since the 1980s, have been exposed by historians. Before Tiananmen Square happened in 1989, Soros enjoyed the hospitality of MSS as China’s state guest. He was funding the MSS through the Economic System Reform Institute (ESRI) and China International Culture Exchange Center (CICEC), which gave him access to the upper echelons of Chinese bureaucracy. In 1986, Soros had set up ‘China Fund’ with a million dollars in endowment he partnered with ESRI. The signing ceremony was held at Beijing’s Diaoyutai State Guesthouse during his first trip to China. In February 1988, Soros again traveled there to sign a revised agreement with Yu Enguang, a spy master and high-ranking MSS official. The CICEC itself was a front for the MSS. Tiananmen Square changed everything. The then Chinese establishment believed Soros’ China Fund played an active role in fueling demonstrations and the authorities had to massacre thousands of their own local people. It also led to a purge within the Chinese establishment as CCP’s general secretary Zhao Ziyang, Soros’ top patronage in China then, was put under house arrest and replaced. Xi is an enigma. India’s foreign affairs experts believe, both he and Soros are just putting up a show of discord. Before Soros changed his tracts and became a sudden detractor of Xi, he was invited to the annual Boao Forum for Asia conference on Hainan Island, on the southern tip of mainland China, in the spring of 2013. This was just a few months after Xi first took over the reins of China that year. The hall where Soros spoke was packed. Also, he is still hugely popular among Chinese business people and investors, with his books piled up at local bookstores, including a state-run bookshop in Wangfujing, central Beijing. In the current backdrop, Soros and the OCCRP-like organisations funded by him are an important tool to counter India and PM Modi via the Adani Group. As a thumb rule, stock markets investors and debt market lenders are wary of companies and businessmen who carry a stigma. Rating agencies, controlled by powerful lobbies, are quick to downgrade their credit score, leaving businessmen like Adani high and dry for cheap source of funds leaving their strategically important infrastructure projects in a limbo. [email protected] XI IS AN ENIGMA. INDIA'S FOREIGN AFFAIRS EXPERTS BELIEVE, BOTH HE AND SOROS ARE JUST PUTTING UP A SHOW OF DISCORD. BEFORE SOROS CHANGED HIS TRACTS AND BECAME A SUDDEN DETRACTOR OF XI, HE WAS INVITED TO THE ANNUAL BOAO FORUM FOR ASIA CONFERENCE ON HAINAN ISLAND, ON THE SOUTHERN TIP OF MAINLAND CHINA, IN THE SPRING OF 2013. THIS WAS JUST A FEW MONTHS AFTER XI FIRST TOOK OVER THE REINS OF CHINA THAT YEAR. THE HALL WHERE SOROS SPOKE WAS PACKED N N
42 | B W BUSINESSWORLD | 23 September 2023 INDIA’S G20 CONSENSUS Middle East-South Asia-Europe Corridor seeks to counter China’s global might. From Ukraine war to biofuels, India forges a consensus, surprises many By Team BW I N a deeply fractured, polarised, world, to get a significantlylarge, but disparate bloc of countries, accounting for 85 per cent of global GDP and 75 per cent of global trade, to agree on something as contentious as the Ukraine war, is nothing short of a coup. The recentlyconcluded G20 summit in New Delhi managed to do precisely this, raising India’s global profile, and adding sheen to Prime Minister Narendra Modi’s leadership. New Delhi Leaders’ Declaration The G20 New Delhi Leaders’ Declaration made no direct mention of the Ukraine war. While reiterating that “today’s era must not be of war,” it said: “We note with deep concern the immense human suffering and the adverse impact of wars and conflicts around the world,” and added: “…All states must refrain from the threat or use of force to seek territorial acquisition against the territorial integrity and sovereignty or political independence of any state”. That the G20 statement made no mention of Russia’s aggression drew flak from Ukraine. Avoiding any direct mention of Russia in the New Delhi Leaders’ Declaration was in direct contrast to the Bali G20 sentiment last year. In Bali, most member countries had slammed Russia for its aggression against Ukraine “in strongest words”. Growing Clout Of Global South Avoiding any direct reference to Russia was seen as economic imperatives of the Global South winning the day here. It also showed that the US had made concessions on the issue. India, along with South Africa, Brazil and Indonesia, were said to have worked to evolve a consensus on the matter that showed the growing clout of Global South. That India-led Global South is increasingly getting its voice heard was evident when African Union – the The fact that the G20 New Delhi Leaders’ Declaration was able to forge a consensus was a real big deal FOCUS G20 SUMMIT 2023 55-country bloc – was admitted to the G20 grouping in New Delhi. Prime Minister Modi had taken active interest in the matter. With African Union’s inclusion, the voice of G7 is counter-balanced to a great extent in the grouping. The move was significant for another reason. Africa’s demography compares favourably to the world’s, and any investment in Africa’s growth and future is only likely to bring long-term dividends. A Real Big Deal It was, however, the Middle East-South Asia-Europe corridor – an idea firmed up at the New Delhi event – that made top headlines across the world. The stunner was widely seen as a counter to China’s Belt and Road Corridor.
23 September 2023 | B W BUSINESSWORLD | 43 It spoke volumes about India’s rising global stature. That it managed to reconcile at times antagonistic worldviews was in keeping with the G20 logo: “One Earth, One Family, One Future”. Stress On Concrete Solutions In his opening remarks at the G20 summit, Prime Minister Modi contextualised the meet. He said: “Whether it is a turbulent global economy, or the NorthSouth divide, or the distance between East and West, management of food, fuel and fertiliser, or dealing with terrorism, and cybersecurity, or ensuring health, energy, and water security, we must move towards concrete solutions for these challenges, not just for the present but also for future generations”. A Human-centric Vision At the Summit Session 3, he added: “…I have continuously drawn your attention to human-centric vision instead of GDP-centric approach… Under India’s chairmanship, a strong framework for Digital Public Infrastructure has been agreed upon. Similarly, ‘G20 Principles on harnessing data for development” have been accepted. It has also been decided to launch ‘Data for Development Capacity Building Initiative’ for the development of Global South. Formation of startup 20 engagement group during the presidency of India is also a big step”. India’s Leadership Lauded India passed on the presidency to Brazil, Prime Minister Modi proposed to hold a virtual G20 session at the end of November, when India’s term actually gets over. India’s leadership in helming the G20 bloc, and the Sept 9-10 summit, attracted headlines far and wide. A Financial Times News Briefing podcast, for instance, was titled: “India shines at G20 summit”. Earlier, multiple G20 events, held across the country, acquired national hues, much like a national festival. Those who didn’t quite agree with the government, stressed that it was only a rotational presidency and not an “achievement” in that sense. While the government’s ability to forge a consensus in seemingly difficult conditions was lauded, it was also suggested that, perhaps, a consensusdriven policy framework was needed for the state of affairs back home, too. Some others, however, countered that in an election year, that was easier said than done. While its finer details are yet to be worked out, the idea, described by President Joe Biden as “a real big deal,” saw India, the United States, Saudi Arabia and others announce setting up of rail and ports links between the Middle East, South Asia and Europe. Biofuel Alliance The G20 countries said they would work towards a three-fold increase in renewable energy capacity, globally, in the existing frameworks and targets. India, along with the US and Brazil, also launched a global biofuel alliance. India’s Rising Global Stature The fact that the G20 New Delhi Leaders’ Declaration was able to forge a consensus was a real big deal. While the vision was Prime Minister Narendra Modi’s, the India G20 Sherpa, along with a dedicated team of officials, burnt the midnight oil, and didn’t give up till an agreeable document was arrived at. INDIA’S LEADERSHIP IN HELMING THE G20 BLOC, AND THE SEPT 9-10 SUMMIT, ATTRACTED HEADLINES FAR AND WIDE. A FINANCIAL TIMES NEWS BRIEFING PODCAST, FOR INSTANCE, WAS TITLED: “INDIA SHINES AT G20 SUMMIT” Photograph by PIB
44 | B W BUSINESSWORLD | 23 September 2023 I N THE FAST-PACED and ever-evolving narrative of the 21st Century global economics, India has emerged as a shining star in the realm of entrepreneurship and wealth creation. India’s entrepreneurship and wealth creation story is a testament to the nation’s resolve, adaptability, and unwavering commitment to progress. As we look to the future, the path to success may continue to evolve, but India’s entrepreneurs remain at its forefront, creating not only private wealth but also a brighter future for the nation and its people. Against a backdrop of global economic turbulence, India’s private wealth surged by a remarkable $675 billion in 2022, reaching a staggering $15.4 trillion. India’s economic ascent is underpinned by impressive statistics. Between 2000 and 2022, the number of millionaires in India grew annually at a staggering rate of 15 per cent, and this trend is expected to persist, with an anticipated 11 per cent growth between 2022 and 2027. Today, India proudly counts 849,000 dollar millionaires among its ranks, representing over one per cent of the world’s total. For the first time since 2008, during times of unprecedented turmoil, total net private wealth increased in the country. This resilience underscores the nation’s ability to weather global storms and its capacity for growth. India boasts an impressive 5,480 ultra-high-net-worth individuals (UHNWs) with net worth exceeding $100 million. India has undergone a remarkable cultural shift when it comes to the perception of wealth and entrepreneurship. In the past, wealth was often regarded with suspicion, and discussions about money were viewed as taboo. Pursuing wealth was sometimes seen as a negative endeavour, associated with greed or selfishness. However, today’s India reflects a significant transCOVER STORY Anchor Piece INDIA’S ENTREPRENEURSHIP AND WEALTH CREATION RENAISSANCE INDIA’S BILLIONAIRE CLUB (Clockwise): Mukesh Ambani, Kumar Mangalam Birla, N. R. Narayana Murthy, Azim Premji, Ratan Tata & more By Srinath Sridharan Photograph by Subhabrata Das Photograph by Ritesh Sharma
23 September 2023 | B W BUSINESSWORLD | 45 formation in societal attitudes. The pursuit of wealth through entrepreneurship is increasingly seen as a positive and constructive endeavour. Entrepreneurs are celebrated as innovators and job creators, and wealth creation is seen as a means to uplift not only individuals and families but also communities and the nation as a whole. This shift underscores a growing recognition of the potential for entrepreneurship to drive economic growth and societal progress, marking a new era where the pursuit of wealth is embraced as a source of empowerment and positive change. India’s entrepreneurial journey has been paved by visionaries and trailblazers who have carved diverse paths to private wealth creation. In the past two decades, Indian entrepreneurs have demonstrated remarkable resilience, propelling the nation’s startup ecosystem to unprecedented success. These visionary leaders have navigated through challenges, adapting and innovating along the way. Their determination and ability to weather storms, whether economic downturns or global crises, Entrepreneurs are celebrated as innovators and job creators, and wealth creation is seen as a means to uplift not only individuals and families but also communities and the nation as a whole Photograph by Sanjay Sakaria Photograph by Tribhuwan Sharma Photograph by Umesh Goswami
46 | B W BUSINESSWORLD | 23 September 2023 have been key to India’s emergence as a hub for startups and innovation. The 21st Century Indian business successes showcase that wealth creation is not limited to select business families or predetermined surnames. What truly matters is the ability to transform innovative ideas into tangible revenues and sustainable businesses. The entrepreneurial arena has become more inclusive than ever, welcoming individuals from diverse backgrounds, regardless of their lineage. Success is now determined by merit, innovation, and the capacity to adapt and scale in a rapidly changing world. This shift in the paradigm underscores the democratisation of wealth creation, allowing anyone with a compelling vision and determination to rewrite their own success story, irrespective of their family name. What’s particularly striking is how these entrepreneurs have departed from the traditional societal comfort of secure employment to embark on the road less traveled. They have defied conventional norms and embraced the risks associated with entrepreneurship, choosing to create rather than conform. This bold departure from the well-trodden path reflects a profound shift in India’s mindset, one that prizes innovation, and the pursuit of audacious dreams over the security of a stable job. It’s a testament to the spirit of exploration and daring that has fueled India’s entrepreneurial renaissance. The remarkable ascent of Indian unicorns, startups valued at over a billion dollars, amongst other scaling-up startups, has been underpinned by a set of unwritten rules that define engagement in this competitive arena. These rules include an unwavering commitment to innovation, a customer-centric approach, agility, and a relentless focus on market making. Many Indian unicorns also harbour global ambitions, securing access to capital from diverse sources, and expertly navigating the regulatory landscape. Their scale, data-driven decision-making, and emphasis on sustainability have positioned them as industry leaders. Additionally, the lessons gleaned from successful exits, such as IPOs and acquisitions, have provided valuable insights for future entrepreneurs, offering blueprints for strategic growth. The list of our successful entrepreneurs vividly demonstrates that the entrepreneurial wave in India is far from being an urban-centric phenomenon. It serves as a compelling testament to the fact that India’s entrepreneurial spirit transcends the confines of its urban centres, radiating into the diverse corners of the nation. This phenomenon is two-fold. Firstly, the entrepreneurial genesis of various startups has sprouted from the rich tapestry of India’s diverse regions. From tech hubs in cities like Bangalore, Chennai and NCR to ecommerce giants rooted in smaller towns, these success stories have originated across the country. Entrepreneurs from rural and semi-urban areas have harnessed their local resources and unique perspectives to carve out niches in the national and global markets. Secondly, the impact of India’s consumption economy extends far beyond its urban pockets. The growth in consumption is not solely driven by metropolitan areas but is spurred by the burgeoning middle class and aspiring consumers in tier-2, tier-3 cities, and even rural regions. As economic opportunities and digital connectivity expand, these non-urban areas have become significant contributors to India’s consumption-driven economic growth. In essence, India’s entrepreneurial and consumption stories are intrinsically linked, and they transcend urban boundaries. Entrepreneurs are driven by an unwavering belief in their vision, a deep-seated passion for their ideas, and an unrelenting desire to create something meaningful. They dare to dream because they see possibilities THE 21ST CENTURY INDIAN BUSINESS SUCCESSES SHOWCASE THAT WEALTH CREATION IS NOT LIMITED TO SELECT BUSINESS FAMILIES OR PREDETERMINED SURNAMES. WHAT TRULY MATTERS IS THE ABILITY TO TRANSFORM INNOVATIVE IDEAS INTO TANGIBLE REVENUES AND SUSTAINABLE BUSINESSES. THE ENTREPRENEURIAL ARENA HAS BECOME MORE INCLUSIVE THAN EVER, WELCOMING INDIVIDUALS FROM DIVERSE BACKGROUNDS, REGARDLESS OF THEIR LINEAGE COVER STORY Anchor Piece
23 September 2023 | B W BUSINESSWORLD | 47 ing wealth and the investors who support them. As these businesses thrive and evolve, they contribute not just to the financial prosperity of their creators but also to the development of a dynamic and innovative economy. The future, therefore, promises to be a fascinating terrain where entrepreneurship and private wealth creation continue to play pivotal roles in shaping India’s economic landscape. The success stories of India’s entrepreneurs will undoubtedly serve as a wellspring of inspiration for aspiring innovators and business leaders. They will stand as living proof that dreams, determination, and hard work can indeed rewrite the script of one’s life. These stories will ignite the sparks of ambition, encouraging others to embark on their entrepreneurial journeys, armed with the belief that they too can make a difference. Equally vital, however, is the need to hear about the failures and setbacks experienced by these very entrepreneurs who now bask in the glow of success. Their tales of stumbles and disappointments can reveal the human side of entrepreneurship, shedding light on the arduous path to achievement. Acknowledging these failures is a critical step in overcoming the pervasive fear of failure that often stifles innovation and risk-taking. By understanding that setbacks are not stumbling blocks but stepping stones to growth and resilience, we can instill these values in our future generations, equipping them to face challenges with courage and tenacity. Ultimately, embracing failure as a part of the journey is what paves the way for enduring success and fosters a culture of innovation and perseverance. The adage “success begets success” encapsulates a fundamental truth in the world of entrepreneurship. Successful entrepreneurs not only accumulate wealth but also amass invaluable experience, networks, and resources. These assets, in turn, become potent tools for fostering new ventures and innovation. For policymakers, this phenomenon offers a crucial lesson. To promote entrepreneurship, it’s imperative to create an ecosystem that not only supports budding entrepreneurs but also recognises the role of successful entrepreneurs as mentors, investors, and incubators of future talent. Policies that encourage knowledge-sharing, provide access to funding, and facilitate mentorship programmes that can amplify the virtuous cycle of success, propelling the nation’s entrepreneurial spirit to new heights and ensuring that success continues to beget success. where others see obstacles, and they are undeterred by scepticism or resistance. The fuel that propels them forward is an unyielding determination to prove their naysayers wrong and to leave an indelible mark on the world. The journey of entrepreneurship is marked by challenges, failures, and setbacks, but it’s also defined by the resilience and grit of those who dare to pursue their dreams, no matter what the odds are. It’s this relentless pursuit of their vision that fuels their success and inspires others to follow in their footsteps. Despite the diversity in their approaches, a common thread binds these entrepreneurs – an unwavering commitment to building fundamentally sustainable, revenue-generating Indian businesses. These entrepreneurs have gone beyond personal gain; they’ve become architects of value creation for a wide array of stakeholders. By building businesses with sustainability at their core, they have not only amassed private wealth but have also become agents of positive change in society. Their commitment to consistency in revenue generation ensures job creation, economic growth, and stability for countless employees and communities. This remarkable wealth creation story is further bolstered by India’s growing economy, where consumption plays a pivotal role. The nation’s digital infrastructure growth and innovation have unlocked unprecedented opportunities for entrepreneurs. Additionally, India’s youthful demographic, marked by its vibrancy and potential, significantly shapes consumption patterns and fuels economic growth. In recent years, the Indian consumption economy has undergone a remarkable transformation. The nation’s rising middle class, increased urbanisation, and growing digital penetration have all played pivotal roles in reshaping consumption patterns. With greater access to ecommerce platforms and a surge in online retail, consumers now have an unprecedented array of choices at their fingertips. Moreover, India’s young and tech-savvy demographic is driving the demand for innovative products and services, further accelerating the evolution of the country’s consumption economy. The success of India’s entrepreneurial ventures holds profound implications not only for the founders but also for the broader narrative of private wealth creation within the nation. It sparks vital questions about the trajectory of this journey and what lies ahead for the individuals dedicated to creatTHE SUCCESS STORIES OF INDIA’S ENTREPRENEURS WILL UNDOUBTEDLY SERVE AS A WELLSPRING OF INSPIRATION FOR ASPIRING INNOVATORS AND BUSINESS LEADERS. THEY WILL STAND AS LIVING PROOF THAT DREAMS, DETERMINATION, AND HARD WORK CAN INDEED REWRITE THE SCRIPT OF ONE’S LIFE
48 | B W BUSINESSWORLD | 23 September 2023 FRONTIER The total private wealth in the country surged to $15.4 trillion in 2022, as more and more young entrepreneurs invaded the hallowed portals of millionaires. A BW Businessworld special report on the tectonic shift in business strategics and the ethos of wealth creation INDIA’SWEALTH I DEAS DON’T MAKE YOU RICH,” said British publisher and poet Felix Dennis, “The correct execution of ideas does.” It is in this execution of ideas that forward-thinking business leaders skillfully craft compelling brands and orchestrate their departures from them at opportune moments. The 2019 Global Wealth Migration Review had predicted that India would overtake Germany and the UK to become the fourth-largest wealth market in the world by 2028. India’s ultra-high-net-worth individuals (Ultra HNIs), that is those with a net worth of $30 million and more, are expected to rise to 19,119 in 2027, up 58.4 per cent from 12,069 in 2022, according to a Knight Frank India report. The number of billionaires in India is expected to move up to 195 in 2027. Notwithstanding disturbing global headwinds in a highly volatile year, India’s total private wealth Figure 2: Regional composition of global wealth distribution in 2022 Source: James Davies, Rodrigo Lluberas and Anthony Shorrocks, Global Wealth Databook 2023 Wealth distribution by region The regional pattern of wealth distribution can be explored further by assigning adults to their corresponding global wealth positions. Our calculations suggest, for example, that a person needed net assets of just USD 8,654 to be among the wealthiest half of world citizens at end-2022. However, USD 137,333 was required to be a member of the top 10% of global wealth holders, and USD 1,081,342 to belong to the top 1%. All members of the global top 1% are therefore USD millionaires, as has been the case since 2020. The minimum wealth requirement in 2021 was USD 1,152,602, so that the threshold for membership of this elite group has fallen this year even before inflation is taken into account. Determining global wealth percentiles in this way enables the regional membership of each global decile (i.e. 10% slice) to be determined. Figure 2 provides a visual representation for 2022. The chart confirms some of the features already noted such as the concentration of African and Indian citizens in the lower sections the wealth pyramid, the dominance of China in the middle tiers and the substantial over-representation of North America and Europe in the top percentile. Also evident is the sizable number of North American and European residents in the bottom global wealth decile, reflecting the ease with which individuals – especially younger adults – acquire debt in advanced economies, often resulting in negative net wealth according to our definition of net worth. Note too that, while the bulk of Indian citizens are located in the bottom half of the global distribution, high wealth inequality and a huge population means that significant numbers of Indian citizens also occupy the top wealth echelons. This is less true for Africa. The most striking feature of Figure 2 is the dominance of China in the upper-middle section of the chart. At the start of the century, China was firmly centered in the middle, with the bulk of its citizens occupying global deciles 4–8. However, China’s exceptional rate of wealth growth has moved the country profile progressively rightward over time, displacing the countries and regions with less-vigorous growth records. As a result, China has squeezed out some members of the top decile previously residing in Europe (in particular) and North America (to a lesser degree). These ex-members of the top decile have simply been overtaken by their Chinese counterparts. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 10 20 30 40 50 60 70 80 90 95 99 100 Percentile Asia-Pacific India China Africa Europe Latin America North America COVER STORY Entrepreneurship By Resham Suhail Regional Composition of Global Wealth Distribution In 2022, global wealth declined 2.4 per cent. In contrast, wealth in India rose 4.6 per cent, report reveals Source: Global Wealth Report 2023 by UBS increased by 4.6 per cent to $15.4 trillion in 2022, according to Global Wealth Report 2023. The number of millionaires in India grew annually at the rate of 15 per cent between 2000 and 2022, the report revealed China and India were the outliers in a world of crumbling assets in 2022. India did not experience any reduction in financial assets at all. Over the last two years cash-strapped promoters and start-
23 September 2023 | B W BUSINESSWORLD | 49 up founders have raised capital through share sales, initial public offerings (IPO), strategic sales of companies or secondary sales to investors, but have kept their ships afloat in turbulent waters. As the Indian economy continues to surge forward, founders and promoters will be more tempted than ever before to juggle the options of mergers and acquisitions, initial public offerings or complete exits from high-impact enterprises in their aspirations to retain private wealth. The Exit Mantra A. Velumani, a scientist who built the disruptive diagnostic company Thryocare from scratch in 1995, sold it to a digital pharmacy startup PharmEasy in 2021. He sold 66.1% for Rs 4,546 crore. The fundamentals of value creation for substantial personal wealth in business are consistent. A market gap or a pain point has to be identified and the business that figures out its solution creates a certain impact and generates revenue eventually. “Build a business with high efficiencies and a high productivity team. If your profit levels are high and growth is impressive, a strategic investor might pay even 20 per cent more,” says Velumani. When Velumani started Thyrocare, the words ‘startup’, ‘entrepreneurs’, ‘venture capital’ or ‘private equity’ were not heard of. Entrepreneurs were focused on making more profits and valuations were not the starting goal. “Today, it is totally a valuation game. Loss-making companies are valued often more than regular profitmaking and dividend-yielding companies,” muses Velumani. Veteran business tycoon, Sanjeev Bhikchandani, best known for investing in India’s promising internet startups, is another stellar example. He is the Founder and Executive Chairman of Info Edge. The company has three offerings, Naukri. com, 99acres and Jeevansathi. The 2020 Padma Shri awardee is also a co-founder of Ashoka University. Apart from this, he holds stakes in Zomato and Policybazaar, both of which went public in 2021. Deepinder Goyal, Co-founder of Zomato, made a Rs 9,375 crore initial public offering in July 2021. The IPO was oversubscribed by 35 times and Zomato became India’s first unicorn to be listedon the stock exchanges in August 2022. Zomato completed the acquisition of Blinkit for Rs 4,447 crore in an all-stock deal and its warehousing ancillary service business was bought for Rs 61 crore. In 2021, after acquiring BigBasket, Tata Digital bought an online pharmacy startup continuing its investment in 1mg which was founded by Prashant Tandon. 1mg had secured $40 million at unicorn valuation in September 2022. Risk Capital These swift mergers and acquisitions draw their strength from the availability of risk capital from angel funds, venture capitalists and private equity funds. In the days of yore such acquisitions would only have been possible from decades of wealth creation from reserved earnings. “The fundamental shift has enabled entrepreneurs to create large businesses MITHUN SACHETI, CaratLane Exited CaratLane, Sold 27.18% to for Rs 4,621 crore “The beauty of these kinds of transactions and exits is that they come out of nowhere” Photograph by Drogatnev
India’s Wealth Report The number of ultra-high-net-worth individuals (UHNWIs) in India 58.4% Projected to grow by 2027 in India by 2027 195 Billionaires Source: Knight Frank’s ‘The Wealth Report 2023 Note: UHNWIs are individuals with a net worth over $30 million 2022 2027 Number of Individuals (UHNWI) 12,069 19,119 50 | B W BUSINESSWORLD | 23 September 2023 in a short span of time while bringing in more partners who could possibly share the risk as well as the reward,” points out Prashant Tandon. Startups in India are poised to contribute to four to five per cent of the country’s GDP over the next five y e a r s , s ay s a StrideOne report. In the last three years, the ecosystem has evolved drastically but what remains same is the history of successful businesses emerging out of India. According to a Bain & Company report, the volume and value of consolidations and strategic merger and acquisition deals reached an all-time high in India in 2022. What prompted this? Larger conglomerates, traditionally known for their scale and stability, have astutely recognised the potential that startups represent in catalysing market growth. Consequently, they have embarked on a vigorous spree of acquisitions, partnerships and mergers with these young companies. The math of creating wealth today is to raise the necessary capital to make upfront investments and be okay with a smaller share of a larger pie, say industry experts. Another aspect of the mantra, they say, is to try and utilise the upfront investment to move fast and build wealth through your percentage holding of that value pool of co-creation. Recently, the Founder of CaratLane, Mithun Sacheti, made headlines by selling his remaining stake in his company to Tata group company Titan for a massive Rs 4,621 crore in a very rare event. It was noticeable because it was a complete cash deal exit. Such swift hefty deals could account for one reason for the growing tribe of Indian millionaires in India between 2000 and 2022, as the Global Wealth Report shows. Back in May 2018, Walmart had acquired a 77 per cent stake in Flipkart for about $16 billion (Rs 1.05 lakh crore) in the largest ecommerce deal. Sachin Bansal, Co-founder of Flipkart walked out selling his 5.5 per cent stake for DR A VELUMANI, Thyrocare, Exited Thyrocare, Sold 66.1% to for Rs 4,546 crore “Pushing valuations often leads to recalibrations which erodes the dignity of the brand. So, have patience” SANJEEV BHIKCHANDANI, Info Edge Founder and Executive Chairman of Info Edge which holds stakes in Zomato and Policybazaar BINNY BANSAL, Flipkart After Walmart took over, he retained over around 2% share in the company which he sold last month SACHIN BANSAL, Flipkart He had completely divested his 5.5 per cent holding in Flipkart at the time of acquisition in 2018 COVER STORY Entrepreneurship